 Fractional Reserve Banking is the practice word by a bank accepts deposits, makes loans or investments, but is required to hold reserves equal to only a fraction of its deposit liabilities. Reserves are held as currency in the bank, or as balances in the bank's accounts at the central bank. Fractional Reserve Banking is the current form of banking practice in most countries worldwide. Fractional Reserve Banking allows banks to act as financial intermediaries between borrowers and savers, and to provide longer-term loans to borrowers while providing immediate liquidity to depositors providing the function of maturity transformation. However, the bank can experience a bank run if depositors wish to withdraw more funds than the reserves that are held by the bank. To mitigate the risks of bank runs and systemic crises when problems are extreme and widespread governments of most countries regulate and oversee commercial banks, provide deposit insurance and act as lender of last resort to commercial banks.13 Because banks hold reserves in amounts that are less than the amounts of their deposit liabilities, and because the deposit liabilities are considered money in their own right, fractional reserve banking permits the money supply to grow beyond the amount of the underlying base money originally created by the central bank.13 In most countries, the central bank or other monetary authorities regulates bank credit creation, imposing reserve requirements and capital adequacy ratios. Banks can slow down the process of money creation that occurs in the commercial banking system, and helps to ensure that banks are solvent and have enough funds to meet demand for withdrawals.3 However, rather than directly controlling the money supply, central banks usually pursue an interest rate target too. Adjust the rate of inflation and bank issuance of credit.4