You can borrow it from another bank. Or you can pledge the loan to Jake as collateral at the central bank in exchange for cash with which to satisfy the reserve requirements. Or you can take deposits.

But you only have to satisfy the reserve requirement after Jake already has his loan. In extremis you will borrow the reserves from the central bank at a penalty rate.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman

No, you have up to a month to find those regulatory reserves, because regulatory compliance only requires that your average position over the month in question is in excess of the requirement.

But that's actually incidental, because you make the loan to me, and turn around and rediscount the note with the CB on the very same day.

- Jake

Friends come and go. Enemies accumulate.