@thristov
Banks now hold less cash (reserves) at the Federal Reserve than they did during the Credit Suisse collapse. To make it simple:
Every commercial bank keeps part of its reserve capital parked at the central bank (the Fed): that’s the money they use to settle payments, issue loans, and keep the system running smoothly.
During the Credit Suisse crisis, total bank reserves were around $3.0 – 3.3 trillion.
Today, they’ve dropped to just $2.8 trillion, meaning there’s significantly less liquidity in the banking system than back then.
One more signal that Banking stress is due!
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