Banks appear to continue to hoard cash. In many cases, the origin of this cash is either taxpayer money, or U.S. government borrowed money. Yes, banks may actually be hoarding money borrowed from China, Japan, etc..
This very likely took place due to the government bailouts of banks in 2008 and based on many news reports, continues currently. Due to the continued slow economic expansion, and now slowdown the in the current expansion, banks are still reluctant to expeditiously lend out money to both small businesses for small business loans, small business leaseback loans, as well as to individuals.
In essence, they are still hoarding cash, due to uncertainty, which itself is a drag on the economy.
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