Fractional Reserve Banking Leave a reply Fractional Reserve Banking is not the problem. The problem is duration mismatch, aka borrowing short to lend long, aka “rolling the debts.” Updated link is here. Share this: Click to share on Facebook (Opens in new window) Facebook Click to share on X (Opens in new window) X Click to email a link to a friend (Opens in new window) Email Click to print (Opens in new window) Print Like Loading... Related