But the offset to higher than normal banking is to allow more borrowing, not less which keeps more points further out.
This isn't the normal scenario where maybe 10% of all points are banked, 10% are borrowed and everything stays in balance. This is banking that was prompted by losing 3 months of availability at every resort, combined with low utilization that occurred through most of 2020 when people were unwilling or unable to travel.
Conservatively, there were at least 30 million points banked or extended in 2020. The 3-month resort closure represented about 20 million points of lost capacity. Aulani and VGC were closed longer. And resorts weren't operating at normal capacity, so we know many owners were willingly not using their points.
As 2022 rolls around, DVC has villa capacity to absorb about 90 million points. But owners are receiving 90 million new points this year (and every year.) That 30+ million banked excess from 2020 is still floating in the ether. The only real way for it to drop off is for the points to gradually expire unused. Or for the system to permanently remain in a state of increased banking.
The borrowing restriction is helping to minimize the loss by expiration. It's giving favoritism to banked and current year usage over borrowing. If DVC were to lift the borrowing restriction, it would only accelerate the process of members losing points to expiration.