Fed: Major U.S. banks see $700 billion in reserves as ‘comfortable’

May 23, 2019

WASHINGTON (Reuters) – Major U.S. banks as of January said they wanted to hold at least $700 billion in reserves, versus their existing holdings of $1.2 trillion at that point, the Federal Reserve said Thursday.

The Fed’s latest survey of senior finance officers at 75 banks, representing about three-fourths of reserve holdings, showed the central bank might still be able to shave perhaps half a trillion dollars from its balance sheet and still meet bank reserve demand.

(Reporting by Howard Schneider; Editing by Andrea Ricci)

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