Part 4/9:
If the forecasts hold true, the infusion of liquidity could be "very bullish" for markets. With the possibility of immediate and large-scale support, stocks and other financial assets could experience a significant uplift. However, uncertainty remains — the actual speed and scale of utilization depend on many factors, including the behavior of banks and regulatory policies.
One striking point from JPMorgan's analysis is that the reserves in the U.S. banking system, totaling around $3 trillion, are concentrated among the largest banks. As a result, many smaller institutions might pivot toward larger banks to preserve liquidity and security, fostering further consolidation in the banking industry.