Banks are slashing the reserve ratios to increase the supply and indebt the public to deal with the financial catastrophe.
Actually the exact opposite is happening. Banks are not lending and they are increasing their reserves across the board. Hundreds of billions the Fed pushed out is just sitting in the banks. They are already increasing lending standards which is also reducing it. The mortgage market in the United States, for example, was basically frozen.
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https://in.reuters.com/article/us-china-economy-rrr-cut/china-pumps-79-billion-into-economy-with-bank-cash-reserve-cut-idINKBN2101B3
Banks are slashing the reserve ratios.
Central banks cutting the reserve ratio does not mean banks follow through.
All the major banks are raising funds while in expectation of rising bad debts as loans turn bad. They are also increase lending standards which slows lending.
The Keynesian view of the world is misplaced. Central banks think they control the economy but the reality is they cannot for demand and banks will operate in their own best interest.
Here is BOA who raised $26 B. This is in addition to the $66 billion set for bad loans.
http://investor.bankofamerica.com/news-releases/news-release-details/bank-america-has-raised-26-billion-capital-plan-date
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Increasing the reserves is not opposite of slashing of the reserve ratio. They work great together and increase the supply many times over a period.