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Comment by jampekka | Hacker News Reader

There are no fractional reserve requirements anymore. And (almost) all money is debt anyway, even by definition with some definitions.

"As announced on March 15, 2020, the Board reduced reserve requirement ratios to zero percent effective March 26, 2020. This action eliminated reserve requirements for all depository institutions."

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

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There are lots of reserve and stress testing requirements on banks, and banks are usually public companies whose finances their investors can read, and they often fail when the investors decide the finances look bad.

https://www.investopedia.com/terms/b/basell-iii.asp

There are, but the lack of reserve requirements make the widespread idea that banks are lending other people's deposits out is even more wrong.

The effectiveness of these "stress tests" remain to be seen. There was widespread trust for the "financial innovations" "pricing risks" until the system turned out to be a total scam.

there are still capital rserve requirements. but imagine we ignore all of that: yes, so they're lending out 100 bucks from the 100 bucks i gave them. they're still not "printing money" - everything they give is what i gave them

you're forgetting the next person they give that 100 bucks to, deposits that money (if not completely spent) into a bank, which is again used to lend out more money.

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