I think that is a misreading of the article. A lack of bank deposits constrain lending, so banks need deposits in order to lend.

Banks keep as little cash as possible, because (again) cash does not earn money. They try to lend out as much as possible. The people who borrow money don't sit on it, either, who wants to pay interest on money sitting in a pile?

The whole cash hoarding theory is nonsense.

they sure do. Current fed rate is 2.0%