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Finally, how about 100 per cent book regulations?

Finally, how about 100 per cent book regulations?

The Bundesbank paper notes the strain into the general public debate where you can find demands a 100 % book system become imposed as an element of banking reform.

The claim is the fact that by limiting the credit creation capability of banking institutions (the fractional reserve system noted above), the banking institutions will be more stable and there is less chance of crisis.

Therefore if banks had to also have reserves equal for their loan book then security will be improved.

Nevertheless the Bundesbank can be as on compared to that nonsense as MMT is.

It emphasises that banking institutions make loans which create deposits as a result to demands from credit customers that are worthyborrowers).

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