From the investopedia page: If bank lending is constrained by anything at all, it is capital requirements, not reserve requirements; however, since capital requirements are specified as a ratio whose denominator consists of risk-weighted assets (RWAs), they are dependent on how risk is measured, which in turn is dependent on the subjective human judgment.
https://www.investopedia.com/articles/investing/022416/why-banks-dont-need-your-money-make-loans.asp
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I think what they’re saying is that banks can do whatever the hell they want.
If they have any rules that keep them from loaning money out at all, it’s the one rule that says they have to have so much stuff that for sure belongs to them first. But really, they are allowed to guess how much they think that is, so – no rules. They do whatever they want.
Too much bank shit is self policed it’s insane.
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