FXStreet reports that the measures taken by the US Federal Reserve (Fed) since 15 March have already had a major impact on the balance sheets of commercial banks resident in the United States, Céline Choulet from BNP Paribas reports.

"Reserves held at the Central Bank have considerably increased following their role as intermediaries for the Fed's securities purchases, emergency loans and liquidity swaps."

"As in 2008-2014, the Fed's QE policy has also created a disconnect between growth in loans and growth in deposits on banks' balance sheets."

"As in 2008, a large proportion of dollar liquidity lent by the Fed to foreign central banks, then distributed to non-resident banks, has eventually been re-lent to resident banks, as shown by the increase in their net debts to affiliated entities located abroad."