Excess Reserves
Definition
Bank reserves above the regulatory minimum. Banks usually hold few before crises; massive after QE.
Example
US banks held around $2.5–2.7 trillion in excess reserves at the Fed by 2014.
Bank reserves above the regulatory minimum. Banks usually hold few before crises; massive after QE.
US banks held around $2.5–2.7 trillion in excess reserves at the Fed by 2014.