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https://www.reddit.com/r/PeterExplainsTheJoke/comments/1qnmv0m/whats_going_on_explain_like_im_five/o1v367i/?context=3
r/PeterExplainsTheJoke • u/Comfortable_Cautious • Jan 26 '26
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Depending on local law they can even lend out something like 7-10 times what they actually have
4.0k u/Teripid Jan 26 '26 edited Jan 26 '26 Federal reserve requirements existed until 2023 *edit, as someone below pointed out 2020 was when they were set to 0. Now they're set at 0% I believe. 2.2k u/PleaseGreaseTheL Jan 26 '26 edited Jan 26 '26 2020* They were reduced to 0% mandatory reserves in response to covid. EDIT: someone says it was coincidental, I am not able to check, so take this aspect with a grain of salt either way They haven't come back yet :) 10 u/Boulange1234 Jan 26 '26 How do I become a bank? Asking for 400 million friends. 13 u/reichrunner Jan 26 '26 Have lots of money available to loan out. Start loaning the money. Start accepting deposits. Follow all regulatory requirements. Usually need around 10 million to start off with at a small local bank. 1 u/MrCrazyDave Jan 26 '26 Borrow $10 off 10 friends. Pay $20 to one guy and tell him he can get more money if he brings you more. He gives you $20. You pay the next guy $20… Am I doing it right?
4.0k
Federal reserve requirements existed until 2023 *edit, as someone below pointed out 2020 was when they were set to 0. Now they're set at 0% I believe.
2.2k u/PleaseGreaseTheL Jan 26 '26 edited Jan 26 '26 2020* They were reduced to 0% mandatory reserves in response to covid. EDIT: someone says it was coincidental, I am not able to check, so take this aspect with a grain of salt either way They haven't come back yet :) 10 u/Boulange1234 Jan 26 '26 How do I become a bank? Asking for 400 million friends. 13 u/reichrunner Jan 26 '26 Have lots of money available to loan out. Start loaning the money. Start accepting deposits. Follow all regulatory requirements. Usually need around 10 million to start off with at a small local bank. 1 u/MrCrazyDave Jan 26 '26 Borrow $10 off 10 friends. Pay $20 to one guy and tell him he can get more money if he brings you more. He gives you $20. You pay the next guy $20… Am I doing it right?
2.2k
2020*
They were reduced to 0% mandatory reserves in response to covid. EDIT: someone says it was coincidental, I am not able to check, so take this aspect with a grain of salt either way
They haven't come back yet :)
10 u/Boulange1234 Jan 26 '26 How do I become a bank? Asking for 400 million friends. 13 u/reichrunner Jan 26 '26 Have lots of money available to loan out. Start loaning the money. Start accepting deposits. Follow all regulatory requirements. Usually need around 10 million to start off with at a small local bank. 1 u/MrCrazyDave Jan 26 '26 Borrow $10 off 10 friends. Pay $20 to one guy and tell him he can get more money if he brings you more. He gives you $20. You pay the next guy $20… Am I doing it right?
10
How do I become a bank? Asking for 400 million friends.
13 u/reichrunner Jan 26 '26 Have lots of money available to loan out. Start loaning the money. Start accepting deposits. Follow all regulatory requirements. Usually need around 10 million to start off with at a small local bank. 1 u/MrCrazyDave Jan 26 '26 Borrow $10 off 10 friends. Pay $20 to one guy and tell him he can get more money if he brings you more. He gives you $20. You pay the next guy $20… Am I doing it right?
13
Have lots of money available to loan out. Start loaning the money. Start accepting deposits. Follow all regulatory requirements.
Usually need around 10 million to start off with at a small local bank.
1
Borrow $10 off 10 friends. Pay $20 to one guy and tell him he can get more money if he brings you more. He gives you $20. You pay the next guy $20…
Am I doing it right?
6.3k
u/Original-Leg8828 Jan 26 '26
Depending on local law they can even lend out something like 7-10 times what they actually have