I wonder if it makes sense to require 'time weighted' cash reserves - in the sense that assets that can be converted to cash are discounted by the number of days before they can be converted. T-bills are an easy example. Or, given that they can be redeemed at a discount before maturity, maybe count them at their discounted value?

I'm just spit balling here. Not a finance guy, which this probably makes obvious.

Thanks for the well written article! I wish more people understood this about banks and cash reserves. Maybe it's time to start playing that Jimmy Stewart clip as a PSA? :-)