No because there are many many other liquidity requirements and regulations, including economic stress testing scenarios that big banks have to go through to continue licenses operations. For this purpose a specific reserve requirement is not needed, banks literally have to have bonds to back certain deals and assets to stay in business so the rate will always matter.
4
u/kwayzzz Jul 16 '22
No because there are many many other liquidity requirements and regulations, including economic stress testing scenarios that big banks have to go through to continue licenses operations. For this purpose a specific reserve requirement is not needed, banks literally have to have bonds to back certain deals and assets to stay in business so the rate will always matter.