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Banks hold their excess reserves at the Federal Reserve[0] and receive interest on top, currently 2.35%. Scales up to at least a couple trillion give or take a
by UncleEntity 7y ago
Banks hold their excess reserves at the Federal Reserve[0] and receive interest on top, currently 2.35%. Scales up to at least a couple trillion give or take a few hundred billion.
[0] https://fred.stlouisfed.org/series/WRESBAL https://fred.stlouisfed.org/series/WRESBAL
- toast0 7y agoEuropean banks hold their excess reserves (or at least their required minimum reserves) at the European Central Bank or their country's central bank; all of which are currently charging interest for the privilege.