reply on: Credit Card Delinquency Rates in the U.S. by State \ stacker news ~charts_and

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200 sats \ 1 reply \ @BlokchainB 5 Mar \ parent \ on: Credit Card Delinquency Rates in the U.S. by State charts_and_numbers

Yeah all banks in USA have very little reserve requirement. And we have debt based money. Soon as you use that credit card it instantly becomes an asset to the bank because it’s dollars you owe them. It becomes your liability because you must pay it back.

The interest rates on credit cards are so high because they have a higher chance of default. To make sure the bank doesn’t lose on these short term loans they make the rates extremely high.

Since Americans love to consume and we get ads in our faces everywhere we go people who have poor impulse control get suckered in.

70 sats \ 0 replies \ @0xbitcoiner OP 5 Mar

thanks ! I assumed the reserve requirement was zero, but maybe it's different for credit.

The annual indexation of these amounts is required notwithstanding the Board's action in March 2020 of setting all reserve requirement ratios to zero. The reserve requirement exemption amount for 2023 will remain $36.1 million, unchanged for 2024, consistent with the Federal Reserve Act (the “Act”).

https://www.federalregister.gov/documents/2023/11/29/2023-26212/reserve-requirements-of-depository-institutions#:~:text=The%20annual%20indexation%20of%20these,(the%20%E2%80%9CAct%E2%80%9D).