The new banking reserve requirement: 0%

This happened a few months ago and it slipped right past me. Simplified explanation… There’s a “reserve ratio” that governs how much capital a bank must keep in reserve when it lends money. It was 10%, meaning $100 of capital allows the bank to lend $1,000. Now it’s 0%, meaning there’s no longer a ratio limit to the amount banks can lend. learn more

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