Reserve requirements


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Reserve requirements

The percentage of different types of deposits that member banks are required to hold on deposit at the Fed.

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 ?
The reserve requirements are the amount of funds that a depository institution must hold in reserve at the Central Bank while the excess liquidity is the increase in deposits of banks held at the CBJ which are above the usual requirement (reserve requirements).
Reserve requirements for similar liabilities of between one and two years' maturity rise to 13 per cent from 11 per cent.
Global Banking News-November 3, 2014--Peruvian central bank cuts reserve requirements
The State Council, China's cabinet, announced after a meeting on Friday that it would trim reserve requirements for banks which lend to the agricultural sector and small enterprises, said the statement posted on the central government website.
As of that date, credit institutions and branches of credit institutions (hereafter referred to as institutions ) located in Latvia will be subject to the Eurosystem s minimum reserve requirements.
Release date- 19102012 - In view of the latest developments in global markets, with an aim to boost the financial stability, the ROCs for all tranches of FX reserves that might be held for Turkish lira reserve requirements have been increased by '0.
Turkey's central bank moved on Friday to cool down red-hot loan growth by raising banks' lira reserve requirements, a day after it slashed overnight borrowing rates to deter speculators betting on currency appreciation.
Oman's central bank said yesterday it was reducing bank reserve requirements and raising the loan-to-deposit ratio in the latest attempt to defrost credit markets.
It also raised for the first time in years the reserve requirements banks have to make for time and savings deposits to 4pc from 2pc, according to the memo.
The NAIC passed this guideline In 2002 to provide guidance regarding Regulation XXX, which addressed reserve requirements for life policies with nonlevel premiums or benefits.
These amounts are used in the calculation of reserve requirements of depository institutions.
Instead of interest rate hikes, the central bank of China will rely more heavily on administrative measures, such as window guidance over bank lending, higher reserve requirements, and moral suasion over local government infrastructure spending.