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Reasonable_One_1809 t1_je9mhwh wrote

Such loans will increase reserve requirements a lot for these banks, so It will be not as good, as op thinks.

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megaultraman OP t1_je9wy4q wrote

It's my understanding that reserve requirements relate only to a a percentage of the deposits a bank has. Borrowing money from Fed doesn't increase the amount of deposits a bank has. What I believe you are thinking of is capital requirements.

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