Frackin’ Reserve Web Edition – A Fractional Reserve Banking Simulator

Frackin’ Reserve Web Edition is a web port of Frackin’ Reserve, which is a desktop version of Frackin’ Reserve Web Edition. Hopefully that clears things up!

Frackin’ Reserve Web Edition lets you simulate the cycles and processes of fractional reserve banking and compound interest. It’s almost the same as the desktop version, but the range of parameters is more limited and some percentages are used instead of pure numbers. If you encounter limitations that you’d like to explore past, download Frackin’ Reserve here.


  1. Slide the sliders to adjust the parameters.
  2. Check the results in the results boxes.
  3. Try different parameters to see how they affect the money supply, i.e. Go to step 1.

More explanation about what each field represents is available on the original Frackin’ Reserve page here.

Hopefully this will make the effects of fractional reserve banking a bit easier for people to visualize and understand.

As mentioned previously, I will follow-up with some explanations about the important aspects of fractional reserve banking and examples using the two versions of Frackin’ Reserve.




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4 thoughts on “Frackin’ Reserve Web Edition – A Fractional Reserve Banking Simulator

  1. hi

    While I understand your working above, someone once told me that what the banks do is slightly different: they put your $1000 dollars in the safe, call it the 10%, and proceed to loan out 10000 dollars.

    Is this correct?


    1. Not quite. The $10,000 number there is a common mistake. That’s called the “money multiplier” and it incorporates the original deposit as well.

      As for if they do it, well, I can’t say for certain. They’re supposed to follow the system, but they may well simply interpret a $1,000 deposit as $9,000 that they can now loan out.

      However, I can’t verify that. Maybe, maybe not. I just don’t know.

      Then again, the speed of the system is fast, so it probably doesn’t matter.