[JumpCrisscross]

> I put a dollar in the bank the bank can then use that dollar to loan to someone else

This isn’t how banks work. When “a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money” [1]. Loans create deposits, not vice versa.

[1] https://www.bankofengland.co.uk/-/media/boe/files/quarterly-...

[adamsb6]

Fractional reserve requirements limit the amount of loans a bank can make relative to its deposits.

[JumpCrisscross]

> reserve requirements limit the amount of loans a bank can make relative to its deposits

Reserve requirements haven’t restricted lending for decades. It’s why they’re zero in most of the world, replaced by finer-tuned capital and liquidity requirements. (And deposits != reserves.)

[amanaplanacanal]

That only works if the requirement is above zero. Which it isn’t.

[iamdamian]

Are there still fractional reserve requirements in the U.S.?

[MR4D]

No.

https://www.federalreserve.gov/monetarypolicy/reservereq.htm