An individual bank can safely lend an amount equal to its excess reserves, but a commercial banking system can lend greater than its excess reserves.
It should be noted that a single bank may not lend money more than the amount that it has in its excess reserves. This is different from the commercial banks that lend more than what they've in their reserves.
An individual bank can safely lend an amount equal to its excess reserves because it's typically difficult for individual banks to keep reserves as per the legal reserve requirements.
Read related link on:
https://brainly.com/question/25628048
