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I wish I had some data on what big banks are doing with the very cheap money they can borrow. Anyone know any sources?
by dash2 6y ago
I wish I had some data on what big banks are doing with the very cheap money they can borrow. Anyone know any sources?
- RobertoG 6y agoI don't think banks are borrowing any money (reserves). Banks borrow reserves from other banks or the central bank when they are lending and they have not enough reserves. In the current situation the central banks has been buying assets from the banks in order to increase the reserves available, so banks have a lot of reserves and don't need to borrow. In fact, I don't think they know what to do with so much liquidity because there are not enough demand of credit in the economy.