Greg Mankiw recommends the latest edition of Lawrence Ball’s Money and Banking textbook. I actually received a review copy of the latest edition about a week or so ago and I must say that I am impressed. I currently use Mishkin’s text, which is also very good, along with some supplemental material (here and here). I understand that Mishkin’s text has undergone a significant revision and will be released soon. I eagerly anticipate seeing the revisions that have been made.
I would recommend either text for use in a Money and Banking course (although I realize that I have substantially less sway that Mankiw).