So 100bn a night, these figures are about a third higher than what was happening before when it was 75bn (IIRC)? It’s odd to me the overnight market has contra

So 100bn a night, these figures are about a third higher than what was happening before when it was 75bn (IIRC)? It’s odd to me the overnight market has contracted to the point this extra liquidity is needed. I’m not particularly concerned about Fed’s overnight loans since I believe they probably technically make a small amount of money off interest. What’s curious is why the overnight market has become so expensive at the intrabank level? On one hand it could be a positive result of greater capital requirements due to post 2008 regulations. Alternatively banks could be holding greater amounts of assets in less liquid forms such as properties or perhaps stocks? Perhaps the high stock market has increased banks asset sheets causing greater liquidity requirements reducing their ability to lend? I’m very much not particularly well informed here, but if that’s the case, this doesn’t really feel so much like news as the Fed just performing it’s mandates as expected?