The U.S. Banking System is called a fractional reserve system because it operates based on the principle of keeping only a fraction of the total deposits as reserves while lending out the remainder. This system allows banks to create money through lending and stimulates economic activity.

Want to understand the fractional reserve system of the U.S. Banking System in a better way? Utilize a BFSI-focused actionable org chart developed by sales intelligence experts as it would help:

• Visualizing the Organizational Structure
• Understanding Banking Operations
• Identifying Key Roles and Responsibilities
• Exploring Reserve Management
• Grasping Money Creation

You can view Org Charts HERE.