Assuming that Stanbic Bank has branches A, B, C D etc. and it receives a deposit of 50,000 Shs from a particular person. It then removes a cash ratio of 15%. Explain how Stanbic Bank will create credit among her different branches.  Discuss the factors that limit the process of credit creation in any country.

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter12: Money And Banking
Section: Chapter Questions
Problem 10E
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  1. Assuming that Stanbic Bank has branches A, B, C D etc. and it receives a deposit of 50,000 Shs from a particular person. It then removes a cash ratio of 15%. Explain how Stanbic Bank will create credit among her different branches. 
  2. Discuss the factors that limit the process of credit creation in any country. 

 

 

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