Multiplier Process of Money Creation The first round bank A assets Liabilities Reserves +100 Deposits +100 Loan +80 Reserve-80 In this case, the required reserve for this additional 100 million deposit is 20 million. The excess reserve for bank a is 100-20=80. This excess reserve can be lend out, say, to Martin who open an account in Bank BMultiplier Process of Money Creation The First Round: Bank A Assets Reserves +100 Loan +80 Reserve -80 Liabilities Deposits +100 • In this case, the required reserve for this additional 100 million deposit is 20 million. The excess reserve for Bank A is 100 - 20 = 80. This excess reserve can be lend out, say, to Martin who open an account in Bank B