03-20-2024, 08:37 AM
Zero reserve requirement does not "expire". It's still the current regulatory regime. While banks are not required to maintain any specific reserve ratio any more, they do have to manage liquidity. They (the banks) are fighting right now to avoid having to comply with Basel III standards on that front as American banks do not have the reserves/liquidity to meet the Basel III requirements. Last I saw, it looked like the Fed was going to neuter the requirements.
I wrote a bit about this issue here:
https://www.pmbug.com/threads/what-is-risky-in-life-zero-reserve-or-full-reserve-banking.5723/
Also, the banking laws changed from bail-out to bail-in circa 2013:
https://www.pmbug.com/threads/no-banks-are-safe-bail-ins-fdic-limits-systemic-risks.2237/
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