Back in the day, U.S. banks were required to hold ‘x’ amount of cash for each ‘y’ amount of money loaned. So if a bank had $100 in deposits, it could have an outstanding loan balance of $1000.
But in 2020, all that changed. Banks, as of then, could loan out as much as they pleased, irregardless of deposits on hand. https://www.federalreserve.gov/monetarypolicy/reservereq.htm
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