# How Central Banks Use Reserve Requirements as a Policy Tool

Page: https://stenobird.com/podcast/monetary-policy-explained-with-fexingo-central-banks-money-supply-and-interest-rates-7872013/how-central-banks-use-reserve-requirements-as-a-policy-tool
Text version: https://stenobird.com/podcast/monetary-policy-explained-with-fexingo-central-banks-money-supply-and-interest-rates-7872013/how-central-banks-use-reserve-requirements-as-a-policy-tool.md
Podcast: [Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates](https://stenobird.com/podcast/monetary-policy-explained-with-fexingo-central-banks-money-supply-and-interest-rates-7872013)
Published: 2026-06-24T07:27:34+00:00
Episode link: https://audio.fexingo.com/business/monetary-policy-explained/episode-0070.mp3
Audio file: https://audio.fexingo.com/business/monetary-policy-explained/episode-0070.mp3
Processing state: not_requested
JSON: https://stenobird.com/v1/public/podcasts/monetary-policy-explained-with-fexingo-central-banks-money-supply-and-interest-rates-7872013/episodes/how-central-banks-use-reserve-requirements-as-a-policy-tool
Duration seconds: 706

## Resource

In Episode 70 of Monetary Policy Explained with Fexingo, Lucas and Luna unpack the forgotten workhorse of central banking: reserve requirements. Once the go-to tool for controlling bank lending, reserve ratios have been sidelined in the US, UK, and Eurozone since the shift to an ample-reserves framework. But they're not dead. The hosts walk through the mechanics, the history of how reserve requirements worked from the 1930s through the 2008 crisis, and the case study of China's 2021-2022 reserve requirement ratio cuts to stimulate lending. They also discuss why the Fed, ECB, and Bank of England now use interest on reserves instead, and whether reserve requirements could make a comeback in a future tightening cycle. A focused, concrete primer on a tool most listeners have heard of but few fully understand. #MonetaryPolicy #CentralBanks #ReserveRequirements #Fed #ECB #BankOfEngland #PeoplesBankOfChina #Lending #BankReserves #InterestOnReserves #MonetaryPolicyTools #AmpleReserves #FractionalReserveBanking #ChinaEconomy #EconomicsExplained #FexingoBusiness #BusinessPodcast #Economics Keep every episode free: buymeacoffee.com/fexingo

## Actions

- request_transcript: `POST https://stenobird.com/v1/public/podcasts/monetary-policy-explained-with-fexingo-central-banks-money-supply-and-interest-rates-7872013/episodes/how-central-banks-use-reserve-requirements-as-a-policy-tool/transcription-requests` — Idempotently request low-priority transcript generation for this episode.
- read_markdown: `GET https://stenobird.com/podcast/monetary-policy-explained-with-fexingo-central-banks-money-supply-and-interest-rates-7872013/how-central-banks-use-reserve-requirements-as-a-policy-tool.md` — Read the agent-friendly Markdown representation of this episode resource.

A page view does not enqueue transcription. Agents should invoke `request_transcript` explicitly when they need this episode processed.

## Transcript

Full transcripts are not published on public pages unless there is a clear rights basis.