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 ?
Moscow: Due to changes in the laws of the Russian Federation providing for the possibility to set different mandatory reserve requirements (required reserve ratios, required reserve averaging ratio) for different types of credit institutions (banks holding a general licence, banks holding a basic licence, non-bank credit institutions), the Bank of Russia Board of Directors decided to set the following mandatory reserve requirements for banks holding a basic licence effective from 1 December 2017.
Prior to 2008, banks did not receive interest on required reserve balances maintained at the Fed, and the associated opportunity cost was viewed as a stealth tax levied on member banks.
5 percent and the required reserve rate by 25 basis points to 8 percent.
The People's Bank of China announced Saturday a second 50bp cut in three months to the required reserve ratio (RRR) for Chinese banks, which will come into force Friday.
ANKARA, Aug 5, 2011 (TUR) -- Turkey's Central Bank has reduced the required reserve ratios for foreign-exchange deposits by 0.
times and increased the required reserve ratio of the country's lenders eight
China still has provision to raise banks' required reserve ratios, Wu Xiaoling, a member of the country's legislative body, reportedly said.
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.
5 million - exceeding the minimum state required reserve level and meeting the district policy for an ending balance of 5 percent of the general fund.
Required reserve balances are the balances that a depository institution must hold to meet reserve requirements.

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