The Risk of Central Banks Lending Out Deposits

If you're a bank and you could lend Catherine awesome fits money at 5% you can park your money at the Fed for 4.9%. What are you going to do? You're going to park it at the Fed because there's no risk. Whereas Fitz, you know, he's the risk. She's a wild woman. She could go out and party all away at a night. But it's paying interest on the reserves. It's just a risk. To me, I think of it as a subsidy. And we'll see this in another story. We'll get to it.