In the context of commercial banks, the __________ is the minimum percentage of deposits that must be held in reserve and not lent out, directly affecting the bank's ability to create new loans.

In commercial banking, the term you are looking for is "reserve requirement. " This is a rule set by the central bank that determines the minimum percentage of deposits a bank must keep in reserve and cannot use for lending. For example, if the reserve requirement is 10%, and a bank has $1 million in deposits, it must keep $100,000 in reserve and can lend out the remaining $900,000. This requirement is important because it helps ensure that banks have enough cash on hand to meet withdrawal demands from customers while also influencing how much money banks can lend out. By adjusting the reserve requirement, the central bank can control the money supply in the economy and affect interest rates.