The LCR was proposed in 2010, followed by revisions and final approval in 2014. Its implementation was then phased in, with the full 100% minimum not required until 2019.4 In the United States, the 100% LCR rule applies only to banking institutions with more than $250 billion in total cons...
Today, Domestic banks like JP Morgan Chase have about 14% of total assets in the form of Fed bank reserves. This mirrors past banking practice, when it was common to hold 10%-12% of assets in the form of “cash.” Today, this “cash” is almost 100% Fed deposits (bank reserves), ...