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How did ECB and Fed explainers from 2008 to 2015 describe loans and reserves?

Research question: How do the ECB Economic Bulletin and Federal Reserve explainers from 2008 to 2015 describe the link between lending, deposit creation and reserves compared with the Bank of England's 2014 article?

The verified facts do not include the ECB Economic Bulletin, the 2008 to 2015 Federal Reserve explainers, or the Bank of England's 2014 article, so the requested comparison cannot be made directly. The closest material is a Federal Reserve definition of M0 as currency in circulation plus deposits that credit institutions hold at the Fed ⁷, and a statement that the Bank of England currently imposes no minimum reserve requirement ¹¹, though that statement is not dated to 2014. The records show that Selgin (2017) describes banks creating loans that raise required reserves while total reserves stay unchanged ², and that Bernanke and Kohn (2016) linked rising lending to rising reserve holdings ⁴, but both are post-2015 sources. The newest fact is from 2021, when a cited economist said there is hardly any visible connection between the central bank money base and the money supply ⁸, about five years before October 2026.

Checked 2026-10-22. Only documented and supported facts are used.

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Sources

[1] supported

Money supply can be increased by commercial banks creating money through lending and reduced when loans are repaid.

"Geldmengen können durch Geldschöpfung im Rahmen der Kreditvergabe durch Geschäftsbanken erhöht und durch die Tilgung von Krediten gesenkt werden."

Geldmenge

[2] supported

Selgin (2017) explains that banks convert excess reserves into required reserves by creating loans, which raises required reserves and lowers excess reserves even though total reserves are unchanged.

"As Selgin (2017, pp.18-20) explains, banks convert their excess reserves into required reserves by creating loans, which increases required reserves and decreases excess reserves, even though the total quantity of reserves remains unchanged."

Bank Lending and Interest on Excess Reserves (2018)

[3] supported

The monetary base (central bank money or reserves) does not have a fixed ratio to the broader money aggregates M1 to M3.

"Auch steht die Geldbasis in keinem festen Verhältnis zu den Mengen M1 bis M3."

Geldmenge

[4] supported

Bernanke and Kohn (2016) argued that bank lending rose alongside banks' reserve holdings after the financial crisis, as evidence that reserves are held in addition to other assets.

"As evidence for this proposition, Bernanke and Kohn (2016) point out that while banks’ reserve holdings have increased since the financial crisis, bank lending has increased as well."

Bank Lending and Interest on Excess Reserves (2018)

[5] supported

Central bank reserves serve as a means of payment only between commercial banks, so M0 is not a subset of M1 to M3 except for the cash held by non-banks.

"M0 ist bis auf den Bargeldanteil bei Nichtbanken nicht Teilmenge von M1 bis M3, da Zentralbankreserven nur zwischen Geschäftsbanken als Zahlungsmittel dienen."

Geldmenge

[6] supported

Keister (2016) argues that reserves are generally held in addition to banks' other assets, rather than substituting for them.

"Keister (2016, p.5 emphasis in original), for example, argues that “reserves are, in general, held in addition to banks other assets.”"

Bank Lending and Interest on Excess Reserves (2018)

[7] supported

The Federal Reserve defines M0 as currency in circulation plus deposits that credit institutions hold at the Fed.

"M0 : Bargeldumlauf plus Guthaben der Kreditinstitute bei der Fed;"

Geldmenge

[8] supported

A cited economist notes that today there is hardly any visible connection between the central bank money base and the money supply.

"heute kaum mehr Zusammenhang sichtbar"

Geldmenge

[9] supported

The document says central banks in several publications have refuted the money multiplier idea, which holds that a multiple of deposit money can be created from central bank money.

"Die irreführende, aber weit verbreitete Vorstellung eines Geldschöpfungsmultiplikators , der besagt, dass aus Zentralbankgeld ein Vielfaches an Giralgeld geschöpft werden könne, wurde zwar von Zentralbanken in verschiedenen Publikationen hinreichend widerlegt"

Mindestreserve

[10] supported

The article argues that minimum reserve ratios in developed economies are typically so low that they do not limit money creation by commercial banks; the eurozone ratio is cited as 1%.

"dass sie keine begrenzende Wirkung auf die Geldschöpfung durch Geschäftsbanken haben."

Mindestreserve-System

[11] supported

The document says that the Bank of England, along with the central banks of Australia, Canada and Sweden, currently imposes no minimum reserve requirement.

"Zentralbanken einiger Länder, wie Australien, Kanada, Großbritannien oder Schweden, fordern zurzeit keine Mindestreserve."

Mindestreserve

[12] supported

The article states that a central bank can use the minimum reserve ratio to make commercial banks' lending depend on their borrowing from the central bank.

"Sie ermöglicht es der Monetären Autorität, die Geschäftsbanken bei ihrer Kreditverteilung von ihren eigenen Krediten bei der Monetären Autorität abhängig zu machen"

Mindestreserve-System