A typical bank balance sheet looks like this (Figure 1). If the deposits get drained on the right side, the cash gets drained on the left side. The question is, how high is the limit of a drain on deposits?
|Figure 1: Balance Sheet|
Let's analyze the bank reserve requirements first.
|Chart 1: Reserve Requirements|
Then we look at the capital and reserves of the banks. The capital and reserves are given in the last column (Table 1).
|Table 1: Bank Statistics|