Quite the opposite! Previously banks had to keep in reserve at least 10% of the assets on their books. In 2020 the
Fed decided to lower that to 0% (where it still sits), meaning banks don't have to actually hold any assets whatsoever and are free to just endlessly lend out money that doesn't exist! Money printer goes brrrrr!
for full clarity of the process
banks do not lend out bank customer money. instead banks were allowed to CREATE 10% of extra money vs depositors to give out as loans
EG say the banks had a combined 1.5trillion on deposits.. at any given time they could only hand out an extra 150billion. which if loans had say a 10 year window of repayment. meant any given year they could only give out 15billion..
decades ago. this was not good enough for banks. as they had new people wanting more loans. and so banks sold that debt onto other investors to refill the yearly allotment they were allowed to reproduce. by getting investors to fill the allotment instead of waiting for the loan payers. thus the investors then got paid by the loan payers
this meant that by banks refilling the allotment. they could make fresh loans faster rather then waiting for slow monthly repayments to refil the allotment.
and now that requirement is now 0% because the 10% became meaningless years ago. banks were producing more then 1% of new money on a 10 year repayment vs depositors balance (which would calculate to be the 10% once repaid)
because they refilled the allotment with other sources to side step the function of the 10% function