cowthulhu

12 ms·

1. 181.▲
   by cowthulhu 4y ago

   That’s not at all how that works. At 95%, they can lend 95 cents for every dollar on deposit.
2. 182.▲
   by cowthulhu 4y ago

   Most banks are regulated by either the FDIC or NCUA, not the Fed. So the fed setting reserve rates doesn’t change anything for banks that, like, normal people use. Additionally, I think you’re viewing reserve rates as the only way banks me
3. 183.▲
   by cowthulhu 4y ago

   I work at a bank in the US, your statement is false for almost all non-federal banks. There’s some complexity to it, but in general banks are required to have roughly 5% of deposits liquid at the close of every businesss day. There’s some w