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On top of that, even though banks aren't required to keep more than 8% of deposits in reserve, they are subject to loads of regulation on their balance sheet to
by acjohnson55 5y ago
On top of that, even though banks aren't required to keep more than 8% of deposits in reserve, they are subject to loads of regulation on their balance sheet to ensure that they are well capitalized. The FDIC exists to stop a run on any bank, but the regulations exist to ensure that if a bank needs to be taken into conservatorship, the assets to bank the deposits will eventually be recoverable.