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RE: Three Reasons For The Banking Industry Collapse

in #banking3 years ago

They need a certain amount of deposits to meet their reserve requirements. After that, they end up either loaning or buying securities with the excess. So the banks do not mind a lot of deposits except when Treasury securities are scarce which is the case right now with the Fed easing.

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Yea but securities are scarce and the deposits right now are essentially liabilities since people can pull out money at any point in time.

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