- FRB WEP BANK FRACTIONAL LOANS
“Fractional Bank Loans” are Loans arranged by Banks generally at 10% to 20% ratio. A common ratio is 10%, or 9 to 1 of the value of deposits made to banks. The diagram below indicates a Bank using a 20% ratio. Banks may determine the Fractional Deposits retained. The Fractional Bank Loans are a way of creating New Money approved by the Country’s Central Bank (CB).
The Image above shows each time the funds are loaned out. The same deposit funds can then be re-loaned as a further Fractional Deposit held against the Loans made, repeating (A-J).
The Federal Reserve System is the central bank of the United States and arguably the most powerful financial institution in the world. The Federal Reserve System was founded by the U.S. Congress in 1913 to provide the nation with a safe, flexible, and stable monetary and financial system.
Net Free Reserves was a statistic that was released in Weekly Federal Reserve data showing the amount of money a bank holds above the required minimum. Deposit banks are required to keep a certain amount of cash on hand at all times.
A bank reserve is the currency deposit, which is not lent out to the bank’s clients. A small fraction of the total deposits is held internally by the bank in cash vaults or deposited with the central bank. Minimum reserve requirements are established by central banks in order to ensure that the financial institutions will be able to provide clients with cash upon request.
Excess reserves are capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors or internal controls. For commercial banks, excess reserves are measured against standard reserve requirement amounts set by central banking authorities. These required reserve ratiosset the minimum liquid deposits (such as cash) that must be in reserve at a bank; more is considered excess.
The reserve ratio is the portion of re-servable liabilities that depository institutions must hold onto, rather than lend out or invest. This is a requirement determined by the country’s central bank, which in the United States is the Federal Reserve. As a simplistic example, assume the Federal Reserve determined the reserve ratio to be 11%. This means if a bank has deposits of $1 billion, it is required to have $110 million on reserve.
Funding the World Visa through the World Export Private Bank (WEP Bank)
Note: WEP Bank is a Working Name only Pending FRB Approval.
(1) The Sample Funding Diagram Below the Certificate explains generally how the World Visa funding is provided to allow Visa members to (2) acquire a Permanent Visa (video) in the Country of Choice through acquiring the World Visa from the Partnership to work through for a Permanent Visa endorsed by WEP Banks.
Click on the Image Below to View Video of IOU True Value of the World Visa Certificate: