Hi,
Came across the following information which depicts interbank lending over time, published by the Federal Reserve Bank of St. Louis:
I assume interbank lending has decreased despite favorable economic conditions and low interest rates because of the increase in reserve requirements - per below:
My primary question/concern is the massive decrease in January 2018? Given that the recent sell off and volatility is ex-post, perhaps financial institutions see something the markets are beginning to process?
Cheers,
Bump.. anyone?
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