where do banks keep their reserves 
some of it is stashed in a vault at the bank reserves also may be kept in the bank s account at one of the 12 regional federal reserve banks some small banks keep part of their reserves at larger banks and tap into them as needed this flow of cash between vaults peaks at certain times like during holiday seasons when consumers withdraw extra cash once the demand subsides the banks ship off some of their excess cash to the nearest federal reserve bank 9the bottom linethe past banking system that existed in the u s before banks regulation became centralized seems a bit wild west by today s standards each state could charter banks and small banks popped up and went under regularly runs on the banks were common that changed with the creation of the federal reserve system and among the changes was a requirement that banks hold a minimum amount of cash in reserve to meet demand since march 2020 the reserve minimum has been zero suggesting that the federal reserve is comfortable with the level of cash kept voluntarily by the nation s banks combined with the 30 day liquidity coverage ratio required by the basel accords 