When the central bank raises the deposit reserve ratio, the deposit reserve paid by commercial banks to the central bank will increase. Of course, the amount of loans available to commercial banks will decrease, and their ability to create credit will decline.

For example, the central bank stipulates that the statutory deposit reserve ratio is 10%, and the deposits absorbed by commercial banks are 100,000 yuan, so it is necessary to deposit100,000 yuan in the central bank's deposit reserve in proportion, and the maximum amount of funds that commercial banks can issue loans is 900,000 yuan (the reserves of commercial banks are ignored here). If the central bank raises the deposit reserve ratio to 15%, after the number of loans issued by commercial banks decreases, the derivative deposits formed by loans will also decrease, so the ability to create credit will decline.