I saw this during the pandemic, and it bewildered me how little coverage of it there was. How is this not going to cause another financial catastrophe? And if we're so sure it isn't, then what makes people think they under economics so well, given that they clearly thought a minimum was necessary just a few years ago?
The banks in Australia, Canada, etc have had zero reserve requirements for thirty years:
* https://en.wikipedia.org/wiki/Reserve_requirement#Countries_...
The US had reserve requirements leading up to the 2008 GFC which started off with mortgages/loans, and yet those requirement didn't stop the disaster. Canada et al did not have requirements, and yet it didn't have a financial meltdown (not itself, only as 'collateral damage' to what happened in the US).
The equivalent for the USA would be the Federal Funds Rate, I suppose. The reserve requirement is just one tool among many.