Bank Required Reserves For US Banks? Zero

 A kind reader (thanks AKOC) asked what are the required reserves for US banks - ie deposits at the Fed or currency in their vaults.  As of 2020 the answer is..zero.

Here is a helpful chart.

So, why zero?  Because except for macroprudential reasons, holding reserves doesn't truly provide any benefit.  Instead, banks must conform to a Liquidity Coverage Ratio - to hold high quality liquid reserves assets (HQLR) in amounts that allow them to pass liquidity stress tests.  Such assets are short term TBills and reverse repos, etc.  If you want more info on what are considered HQLR assets, see here.

So, even though "reserves" as such are no longer required it doesn't mean that banks can operate at full-risk-tilt.