Reserve ratios

(redirected from Required Reserve)

Reserve ratios

Specified percentages of deposits, established by the Federal Reserve Board, that banks must keep in a noninterest-bearing account at one of the twelve Federal Reserve Banks.

Reserve Ratios

The liquid assets that a central bank or other body mandates that a bank keep at all times. The reserve ratio is expressed as a percentage of the bank's total deposits. The reserve ratio exists to ensure that the bank is able to pay an unusually high number of withdrawals on demand accounts should that event occur. It also helps ensure that the bank does not over-leverage itself. In some countries, increasing or decreasing reserve ratios may be used to help control the money supply. See also: Basel II, Monetary Policy.
References in periodicals archive ?
Fitch is satisfied that the debt service reserve fund, the only legally required reserve fund, is sized to provide timely payment of principal and interest on the bonds under various gas pricing levels, swap counterparty default, FGU participant default, and the possible short-term disruptions of gas supply resulting from a UBS non-delivery or Force Majeure.
As a result, the reduction in required reserves associated with sweep accounts has implied a nearly equivalent reduction in aggregate required reserve balances; estimates suggest that the $12 billion dollar decline in OCDs this year translates to a reduction in required reserve balances of nearly $1.
In addition, released funds from the defeasance will be used to fund required reserve accounts and the cost of issuance.
3) At present, the required reserve ratio on nontransaction accounts is zero, while the requirement on transaction deposits is 10 percent, which is near the legal minimum.
Subsequent to refunding bonds from other resolutions, lendable funds will be transferred to this resolution and, together with remaining bond proceeds, will be used to continue CDA's single-family, first-time homebuyer program and fund a required reserve.
The above estimated ending general fund balances do not reflect the statutory required reserve of $65 million.
The transferred funds, as well as the proceeds from the 2006 series I and J bonds, will be used to make or purchase mortgage loans and to fund a required reserve.
As of Friday, the required reserve ratio for foreign-exchange deposits with maturities of one month to one year was reduced from 12 percent to 11.
times and increased the required reserve ratio of the country's lenders eight
The move increases the required reserve ratio for the country's biggest banks to a record 20.
5 percent, and increased the required reserve ratio by 200 basis points to ensure an overall tightening of monetary policy.
25% and reduce the required reserve ratio by 2 percentage points to 6 percent as of April 1, 2010.

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