Multiplier Process of Money Creation The Second Round Bank B A ssets Liabilities Reserves +80 Deposits 80 Loan +64 Reserve 64 For bank b, the required reserve for this additional 80 million deposit is 16 million. The excess reserve is 80-16=64. This excess reserve can be lend out, say to Smith who open an account in Bank cMultiplier Process of Money Creation The Second Round: Bank B Assets Reserves +80 Loan +64 Reserve -64 Liabilities Deposits + 80 • For bank B, the required reserve for this additional 80 million deposit is 16 million. The excess reserve is 80 - 16 = 64. This excess reserve can be lend out, say, to Smith who open an account in Bank C