In a working paper at the Mises site Charles T Hatch writes:
"The use of reserve-sweep programs, which started in 1994, has allowed banks to reduce the effective reserve requirement on transaction deposits (demand and other checking deposits), freeing up high-powered money for other purposes. This activity has effectively lowered the reserve ratio of banks."
Market forces serve as a better regulator of market participants rather than governmental rules and regulations that can easily be circumvented.
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