In a banking crisis, banks are likely to hold more excess reserves than usual.

Name: In a banking crisis, banks are likely to hold more excess reserves than usual.
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During a banking crisis, banks may become more risk-averse and may choose to hold more excess reserves as a safety buffer, rather than lending out the money. This can help to stabilize the banking system and prevent a liquidity crisis.

In a Banking Crisis, Banks Are Likely to Hold More