Today, 08:42 AM
Is it still "Fractional reserve banking" if the reserve ratio is 0 ?
https://www.federalreserve.gov/monetarypolicy/reservereq.htm
Even before then, most people assumed that the amount a bank could lend was based on the deposits it held. But nope, that hasn't been true since at least 2008. Banks can lend as much as they want, and the "deposits" to back up the loan were literally created out of thin air.
I guess they figured, what's the point, lets just drop the reserve requirement entirely.
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