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You can regulate the minimum reserves banks have.
by chaostheory 4y ago
You can regulate the minimum reserves banks have.
- twblalock 4y agoThat's not enough. SVB had reserves. SVB had two other problems that would not be identified simply by looking at minimum amounts: duration risk and lack of liquidity.
- chaostheory 4y agoFrom what I understood, they had the minimum reserves because SVB and other banks lobbied to have it lower.