In the UK there are no legal reserve requirements on lending. Similarly in the US for business lending. Basel III makes no mention of reserves, but it does tal

In the UK there are no legal reserve requirements on lending. Similarly in the US for business lending. Basel III makes no mention of reserves, but it does talk about liquidity. Liquidity can be and is met through interbank lending, with the center bank filling in as necessary. https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/m... https://en.m.wikipedia.org/wiki/Basel_III https://en.m.wikipedia.org/wiki/Basel_III http://www.debtdeflation.com/blogs/2009/01/31/therovingcavaliersofcredit/ http://www.debtdeflation.com/blogs/2009/01/31/therovingcaval... https://positivemoney.org/2011/04/monetary-reform-myths-1-10/ https://positivemoney.org/2011/04/monetary-reform-myths-1-10... A nice bonus link on interest rates not necessarily controlling inflation in the expected way: https://new-wayland.com/blog/interest-price-spiral/ https://new-wayland.com/blog/interest-price-spiral/