Banks actually have too much cash right now and not enough debt on the books. The reverse repo market is at record highs every day. Think of it this way - money loses value over time (inflation), debt owed to the bank is considered an asset and they make up for inflation's affect on money by charging interest on the debt that outpaces the inflation rate.

They actually have too much cash right now and not enough debt on the books. The reverse repo market is at record highs every day. Think of it this way - money loses value over time (inflation), debt owed to the back is considered an asset and they make up for inflation's affect on money by charging interest on the debt that outpaces the inflation rate.