Does the fact that many in the banking sector are unaware that there are currently no reserve requirements mean there are no reserves in the banking system? No.
It means the industry's intellectual capital is very lazy, which should worry people.
Discussion
Do you know many bankers who aren’t fat, lazy, greedy, mal-incentivised?
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It also means an FDIC insured bank can invest up to 250K of your money with zero risk, keep all the profit, and pay you a 0.01% interest rate. Why didn't I think of that?
It also means that the banking system has gone from "little" to "none" in terms of discipline of how much they can increase the money supply through their lending. The "money multiplier", which is deposits divided by reserve requirement, is now infinite.
I think this is just a classic middle management problem. Fiat incentives to look competent, not be competent. I have no doubt that the demons at the top are fully aware. I probably wouldn't be answering LinkedIn polls if I was busy syphoning off 100s of millions $
Complexity’s a bitch.