Some statistical aspects of precautionary reserves in banking

• Autores: Ben O'Neill
• Localización: Review of Austrian Economics, ISSN-e 1573-7128, Vol. 28, Nº. 2, 2015, págs. 179-193
• Idioma: inglés
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• Resumen

  • We examine the volatility of overall withdrawal demands in banking using a model allowing for correlation between individual withdrawal demands. We derive various volatility and elasticity results which show the effects of correlated withdrawals in setting precautionary reserves. We discuss the implications of this analysis for fractional reserve banking.