Now, suppose first main street bank loans out all of its new excess reserves to becky, who immediately uses the funds to write a check to alex. alex deposits the funds immediately into his checking account at second republic bank. then second republic bank lends out all of its new excess reserves to hubert, who writes a check to eileen, who deposits the money into her account at third fidelity bank. third fidelity lends out all of its new excess reserves to kate in turn.