Banking system and its credit creation / Vrinda Arora.

By:

Arora, Vrinda [author]

Material type: Text

TextLanguage: English Publication details: New Delhi : Random Publications, 2022.Description: 302 pages : illustrations ; 24 cmContent type:

text

Media type:

unmediated

Carrier type:

volume

ISBN:

9789390780280 (hardcover)

Subject(s):

LOC classification:

HG1641 Ar5 2022

Online resources:

Click here to view the table of contents

Contents:

Financial and Banking System -- Banking System of Corporate Governance -- Monetary and Credit Development -- Trends in Rural Credit -- Money and Banking -- The Credit Expansion Process -- Traditional Banking Activities -- Central Banking System --Customer Relationship Management and Banking System.

Summary: "Credit creation separates a bank from other financial Institutions. In simple terms, credit creation is the expansion of deposits. And, banks can expand their demand deposits as a multiple of their cash reserves because demand deposits serve as the principal medium of exchange. Credit creation theory of banking proposes that individual banks can create money, and banks do not solely lend out deposits that have been provided to the bank. Instead, the bank creates bank deposits as a consequence of bank lending. Consequently, the amount of money that a bank can create is not constrained by their deposit taking activities. A bank keeps a certain part of its deposits as a minimum reserve to meet the demands of its depositors and lends out the remaining to earn income. The loan is credited to the account of the borrower. Every bank loan creates an equivalent deposit in the bank. Therefore, credit Creation means expansion of bank deposits. In very simple terms, a bank is separated from other financial banks by credit creation. Credit Creation is basically the expansion of the deposits. Also, the banks can expand their demand deposits as a multiple of their cash reserves because the demand deposits serve as a principal medium of exchange. The central bank of a country is responsible for ensuring the supply of money in the economy by circulating the currency. It also ensures that for fulfilling all the transactions, there should be appropriate currency in the system. The present book highlights, considers and discusses various contemporary issues of banking. It is hoped that the present book will meet fully the requirements of both categories of readers, practical and academics."--Back cover

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Holdings
Item type	Current library	Collection	Call number	Materials specified	URL	Status	Notes	Date due	Barcode
Books	Ladislao N. Diwa Memorial Library Reserve Section	Non-fiction	RUS HG1641 Ar5 2022 (Browse shelf(Opens below))		Link to resource	Room use only	80910		00083053

Includes bibliographical references and index.

"Credit creation separates a bank from other financial Institutions. In simple terms, credit creation is the expansion of deposits. And, banks can expand their demand deposits as a multiple of their cash reserves because demand deposits serve as the principal medium of exchange. Credit creation theory of banking proposes that individual banks can create money, and banks do not solely lend out deposits that have been provided to the bank. Instead, the bank creates bank deposits as a consequence of bank lending. Consequently, the amount of money that a bank can create is not constrained by their deposit taking activities. A bank keeps a certain part of its deposits as a minimum reserve to meet the demands of its depositors and lends out the remaining to earn income. The loan is credited to the account of the borrower. Every bank loan creates an equivalent deposit in the bank. Therefore, credit Creation means expansion of bank deposits. In very simple terms, a bank is separated from other financial banks by credit creation. Credit Creation is basically the expansion of the deposits. Also, the banks can expand their demand deposits as a multiple of their cash reserves because the demand deposits serve as a principal medium of exchange. The central bank of a country is responsible for ensuring the supply of money in the economy by circulating the currency. It also ensures that for fulfilling all the transactions, there should be appropriate currency in the system. The present book highlights, considers and discusses various contemporary issues of banking. It is hoped that the present book will meet fully the requirements of both categories of readers, practical and academics."--Back cover

Fund 164 Wiseman's Books Trading, Inc. Purchased 08/30/2022 80910 pnr PHP 7,998.00 2022-08-634 2022-1-0743

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