Deposits

Loans

Money Supply

Transition

Money Banks

100% reserves

-

-

treasury provides reserves

Credit Investment Trusts

-

a) equity + time deposits + funds obtained through

sale of securities [10]

or b) equity + treasury credit [14]

or c) equity [9]

-

government bonds, short-term and mortgage loans are cancelled against treasury credit [14]

Central Bank/Treasury

-

-

provision of treasury credit

-