Re:Nigeria Caps ATM Cash Withdrawals at $45 Daily to Push Di...
by vineyardmike on Thursday December 08, 2022 @01:23PM
(#33911218)
> I'm more worried the banks are extremely over leveraged and don't want to part with any cash
Worry not because banks are actually the opposite! They have so much cash they don’t want it!
They’re still near an all time high (peaked in 2021).
This is the reason that most bank account interest rates haven’t increased despite fed rates increasing - banks don’t want to incentive taking on more cash to their books. Some banks obviously specialize in high interest accounts, usually because they do unusual things with their books, or as a marketing measure, but the major banks don’t need to raise rates.
Worry not because banks are actually the opposite! They have so much cash they don’t want it!
They’re still near an all time high (peaked in 2021).
This is the reason that most bank account interest rates haven’t increased despite fed rates increasing - banks don’t want to incentive taking on more cash to their books. Some banks obviously specialize in high interest accounts, usually because they do unusual things with their books, or as a marketing measure, but the major banks don’t need to raise rates.
Current data (2022): https://fred.stlouisfed.org/series/DPSACBW027SBOG
2020: https://www.wsj.com/articles/now-banks-problem-is-too-much-c...
2021: https://www.barrons.com/articles/banks-are-drowning-in-cash-...