Quasi, there's nothing natural or inevitable about it. An experiment was tried in Australia, to force the banks to increase their cash reserves instead of increasing interest rates. It was:

- done too fast for that percentage increase, or;
- too high a percentage increase for that time frame.

Look at it either way, but the technique worked.

During a downturn the extra money can be 'released', half to the bank (I recommend paying down and off completely derivatives - the money is bank shareholders funds - and using depositor's funds), the other half to the central government, who, pay down debt with it, and use a third of the saved interest to continue paying it down, until they are out of debt completely.

Understand this: there is absolutely no need for the coming mass of foreclosures (and subsequent renting, what you're alluding to?). There is need for an Australian style regulator of banks who can issue the orders as before. Yes, it will impact bank dividends. Diddums. And I'm a bank shareholder.