Quote from: darklus123 on July 25, 2019, 11:18:40 PM

Thank you so much for this information. I realized now that it might be the main reason why you can't just withdraw as much as you can on a certain bank(I am referring to the maximum cash withdrawal per day). Because they were trying to protect a possible bank run. I can now differ to a bank's capabilities on how much their reserves are performing the higher the maximum with per day the higher the reserved that they have

These limits are for cash withdrawals only

But since it is lawful and legit to cash out freely for individuals (but not for businesses), banks have to set the limits as it would be extremely impractical to keep so much cash in their vaults on a day-to-day basis. If there is a need for more cash, banks ask for it in the Central Bank's cash department in the area of the bank's residence but that takes time, hence the limits (apart from AML policies and other such stuff). Again, this has nothing to do with the idea of a textbook FRB as this is more about how a currency is run in real life