From TOS:
Fed abolishes bank reserve requirement completely.
https://www.glocktalk.com/threads/fed-a ... y.1818846/“The "reserve requirement" is the amount of depositors' money (either in actual hard cash, or on the bank's balance sheet thus available for electronic transfer) that a bank is required to have on hand at all times.
For most banks (those with total deposits over $122 million), until yesterday the reserve requirement was 10%.
In other words, if XYZ Bank has $1 billion in deposits from customers, XYZ Bank is required to keep at least $100 million in cash (or available for electronic transfer) at all times.
This is to make sure that banks have enough money available, if customers would like to withdraw money that they deposited in their bank accounts.
That all changed yesterday, when the Fed dropped the reserve requirement to zero percent.
Yes, you read that right. Zero percent.
So as of yesterday, XYZ Bank is no longer required to keep any cash on hand (or as money on their balance sheet).
I think this is a pretty disturbing sign.
I'm not saying that you should necessarily run out to the ATM right now and empty your accounts and put the cash in your safe.
Just be aware that banks are no longer required to keep ANY cash (or electronically transferrable funds) on hand anymore.
Here's the announcement on the Fed website:
https://www.federalreserve.gov/monetary ... rvereq.htm “