Using the premise that every loan is a deposit, let’s examine how credit creative influences growth. U Ba kept 20% of the money that he deposited at A Bank for 1,000 lakhs. Let’s see how the balance changes.

A Bank holds 1,000 million U Ba. U Mya borrowed the remaining 800 kyats from the bank, but he still owed the central bank 200 kyats in cash. U Mya returned it to B Bank. 160 have been placed at the central bank by the bank.