# What does it mean when a bank is "fully loaned up"?

Please briefly explain the situation when a bank is "fully loaned up".

The reserve requirement on deposits ensures that (for a given $reserve\ requirement(\%)$ and $deposits(\$)\$): $$loans(\) \leq deposits(\) \cdot (1 - reserve\ requirement(\%))$$ Fully loaned up means that this holds with equality: $$loans(\) = deposits(\) \cdot (1 - reserve\ requirement(\%))$$