Net Borrowed Reserves
Categories: Banking
Who you gonna call...if you’re a bank that needs more money to lend? In the U.S., that’s the central bank, a.k.a. the Fed.
Net borrowed reserves is the difference between what a bank borrowed from the Federal Reserve and the cash reserves it’s holding above the minimum reserve requirements (legal requirements set by the Fed, so they don’t get too risky by lending out all of their money).
The more reserves borrowed, the more banks are probably lending out...although "net borrowed reserves for banks" was a stat that the Fed stopped measuring in 2013.