4 ms·
Other countries exist.
by aspyct 4y ago
Other countries exist.
- eru 4y agoSee https://en.wikipedia.org/wiki/Reserve_requirement https://en.wikipedia.org/wiki/Reserve_requirement Many countries don't have a reserve requirement. The US was a bit of a laggard. Minimum reserve requirements were always a bit silly. You want your banks to have a thick capital cushion for its debt. Whether they have reserves on hand is an operational problem they can solve themselves, and doesn't have systemic consequences.