The paper investigates the problem of the excess of deposits in banks over loans observed in the US, Europe and Japan, resulting in the cash hoarding in banks. The paper argues that as the higher the borrowers' debt service ratio, the greater default risks, borrowers with high debt service ratio...

As uncertainty always exists, money hoarding that negatively affects economic activity cannot be completely eliminated, it can only be diminished. The paper argues that the scale of money hoarding varies depending on the type of the financial system, and it is asserted that 1) in the debt-based...