As stated above, if an individual bank creates loans, some of the new deposits will end up in different banks.

In section 3.3.1 we saw that if an individual bank increases its lending, other things being equal, the money supply will expand.

Each individual bank does as our single bank did.

The issue of what fines the individual banks would pay, however, was far more contentious.

The individual central banks of the 11 euro countries cut their rates to 3 percent in December, just before the currency's introduction.

The amount and type of capital could be decided for individual banks, depending on their specific risks.

But there is an obvious question: why aren't individual banks doing this as a matter of course?

Apparently, the individual banks did not know that other members of the group had also lent to Carrian.

Under or over liquidity is an unsatisfactory position for individual banks within the system.

Even when the system as a whole is, for example, under liquid, there will still be individual banks with over liquidity.