Banks have not been reserve constrained in at least a decade, the 0% reserve requirement is a red herring. Other countries have had 0% reserves for a long time.

Banks have not been reserve constrained in at least a decade, the 0% reserve requirement is a red herring. Other countries have had 0% reserves for a long time. Banks are constrained in lending by regulatory capital requirements (see Basel III), stress test requirements (in the US), and their own risk tolerance.