Banking 101: Fractional Reserve Lending – Video

Your bank is required to keep only a fraction of your cash deposit in its vault. The bulk of your money gets loaned out, paid off and redeposited into the banking system. This happens an exponential amount of times, creating a “virtual” accumulation of wealth for your bank off of your one deposit.

Is there the possibility of corruption and fraud based on such a system…uh, yeah!

Watch this video from THRIVE:


THRIVE is an unconventional documentary premiering online on 11.11.11 at


Facebook Comments

Amy Conton is a freelance writer and graphic designer living in New York, USA.


Post a Comment

Your email address will not be published.