> My understanding is that banks are required to have a certain level of liquid assets. In the US this is called "Reserve Requirement". In 2020 it was lowered

> My understanding is that banks are required to have a certain level of liquid assets. In the US this is called "Reserve Requirement". In 2020 it was lowered to 0% https://www.federalreserve.gov/monetarypolicy/reservereq.htm https://www.federalreserve.gov/monetarypolicy/reservereq.htm (Not sure about the rest of the world currently)