Glossary term · Money and macro
Bank money
A balance held at a commercial bank; legally a claim against the bank, not the same thing as cash.
Term identifier term:bank-money
Published
Definition from reference release method-v1.2.0Often confused with
Bank money
A balance held at a commercial bank; legally a claim against the bank, not the same thing as cash.
Cash and the reserves that banks hold at the central bank; the only money that is not a claim against a private institution.
Bank money is a claim against a commercial bank. Central bank money (cash and reserves) is a claim against the central bank, not against a private institution.