? However, banks can't lend all the money, and they have to leave some to meet the usual withdrawal needs of ordinary people. How much should I stay? People from the whole banking system sat together and discussed. After a long period of estimation and verification, they found a basic ratio, which is called the bank's deposit reserve ratio.
? The deposit reserve ratio, in other words, is to deposit a large sum of money in the bank, and the bank will take out a part in proportion and deposit it in the central bank, and the rest can be taken out for loans. If the deposit reserve ratio is 10%, then the bank has withdrawn 10 billion deposits, and 10 billion needs to be deposited in the central bank, and the remaining 900 million can be used for lending.
? Note: After the latest RRR reduction in China in February 2006, the RRR of large financial institutions was 16.5%, and that of small financial institutions was 13%. For the convenience of calculation, 10% is adopted here. Tao Tao Qian Bao loan platform, and recommend more financial lending institutions for free.
? The loan of 900 million yuan was lent by the bank to enterprise A, and enterprise A got the money, of which 400 million yuan was used to pay the arrears of suppliers, and the remaining 500 million yuan was temporarily unused, so it was deposited in the bank. The supplier got 400 million yuan, spent 50 million yuan to buy several houses from real estate developers, and the remaining 350 million yuan was deposited in the bank again. The real estate developer got 50 million yuan and deposited it in the bank.
? Here, we found that the 900 million yuan loan was returned to the bank through various deposit methods. Banks continue to withdraw 10% as deposit reserve and deposit it in the central bank, and the remaining 90%, that is, 8 1 100 million, is taken out for lending.
? This time, Company B came to borrow money, and the situation was similar. Part of it is used to pay all kinds of money, and part of it is kept in the bank for backup in the form of demand deposits. This 865438+ billion was finally returned to the bank in the form of deposits.
? The bank withdraws 10% reserve again, and the rest continues to lend. So it keeps circulating:
? The first round of 654.38 billion deposits, including 900 million loans;
? The second round of 900 million deposits, of which 865.438 billion+0 billion was used for lending;
? The third round of 8 1 100 million deposits, of which 729 million was used for lending;
? ……
? Finally, after another round of deposit and loan, the money used is much higher than 654.38+0 billion yuan, so how much will it reach? In a perfect situation, the total amount is 10 billion yuan/10% = 10 billion yuan.
? The above is a simplified example, but in reality there are many more banks and enterprises, but the essence is the same. A company, B company and suppliers, or others may leave some cash in their hands, which will exit the circulation system, but in terms of quantity, the money will not be too big, because people are always reluctant to put too much money in their safes, that is, to bear inflation in vain and wait for the currency to depreciate.
? If the deposit reserve ratio is reduced, it means that there is more money available in the market. Therefore, whenever the central bank reduces the deposit reserve ratio, there are financial news reports that the central bank has released hundreds of billions of funds to the market. That's the reason.