Fractional reserve banking, a cornerstone of the modern financial system, has been met with significant criticism by anyone who understands what constitutes good money. This system, which allows banks to hold only a fraction of their deposits in reserve while lending out the remainder, is riddled with systemic risks and ethical concerns that have only been exacerbated in recent times. In 2020 the Fed announced:

“​​The Board has reduced reserve requirement ratios to zero percent effective on March 26, the beginning of the next reserve maintenance period. This action eliminates reserve requirements for thousands of depository institutions and will help to support lending to households…

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