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Admittedly, unless the reserve amount required is 0 From https://www.federalreserve.gov/monetarypolicy/reservereq.htm https://www.federalreserve.gov/monetarypo
by RHSeeger 4y ago
Admittedly, unless the reserve amount required is 0
From https://www.federalreserve.gov/monetarypolicy/reservereq.htm https://www.federalreserve.gov/monetarypolicy/reservereq.htm
> As announced on March 15, 2020, the Board reduced reserve requirement ratios to zero percent effective March 26, 2020. This action eliminated reserve requirements for all depository institutions.
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Feel free to correct me on this; my financial knowledge is only just a bit higher than that 0% rate noted above.
- kasey_junk 4y agoThe reserve requirement was removed because banks were holding too many reserves for the feds liking. Every US bank still has asset & liability requirements including having at least as many assets as liabilities and stringent rules on what the assets are. Further they have reporting requirements as well.