They need some reserves but the requirement is almost zero nowadays.

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There’s a distinction between commercial bank reserves and central bank reserves I thought.

Central bank bank reserves are inter-bank central bank currency, the stuff of QE. Those don’t go out to commercial circuit, the consumer economy.

And then widespread growth of commercial bank reserves are a post-2008 phenomenon lol

Banks sold their Treasuries to the FED, so the asset treasury was exchanged against FED reserves. On a large scale.