The Riksbank, while serving functions similar to the Dutch Wisselbank, was established as a Lanebank, which allowed it to lend money in addition to facilitating commercial transactions. This dual role enabled the bank to extend loans that exceeded the actual metallic reserves it held. This approach was innovative for its time and laid the groundwork for future banking practices.
By lending out deposited money, the Riksbank effectively pioneered what is now recognized as fractional reserve banking. This method exploited the capability of banks to generate profit from deposits, as funds not immediately required by depositors could be lent to individuals and businesses, thereby stimulating economic activity and growth.