Although banks sit in oceans of excess reserves, it is highly probable that they will remain where they are. Currently, there is a dam in place preventing excess reserves from finding their way into the financial system, creating money, creating debt, creating inflation. Obviously it is a matter of time before such reserves start to leak out. In my opinion what is holding them in place is that there is virtually "noone to lend to". Both Corporations & individuals are already drowning in a ocean of debt. No wonder banks are in the speculation business vs. the lending business. We know the evil of banking is FRL and this is a excellent time to increase the reserve % in order to hold excess reserves in the short and long run. But obviously, the Fed has not intend to carry on such matter. As always we are going to witness inflation, but I highly doubt it will be as bad as many fear.