required reserves

Required reserves

The dollar amounts, based on reserve ratios, that banks are required to keep on deposit at a Federal Reserve Bank.

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.

required reserves

The reserves against deposits that commercial banks and thrifts are required to hold either in cash or in deposits at the Federal Reserve. Compare excess reserves. See also reserve requirement.
References in periodicals archive ?
Required reserve averaging ratio applicable for the calculation of the average value of required reserves -- 0.
16 billion) the total required reserves by the end of June, according to CB statistics.
Summary: Jump brings the total required reserves to Dh125.
On Saturday, the apex bank said that from January it would offer a fixed interest rate on lira required reserves deposited by financial institutions.
In addition to payments on required reserves, the act also allowed interest to be paid on so-called "excess reserves"--those reserve balances in excess of the required amount but held on deposit with the Fed.
The share of AMD required reserves in the total money base made up 26.
Currently, SBP is operating a semi-lagged (which is closer to contemporaneous) reserve accounting framework where required reserves are calculated on the basis of liabilities of the starting day (i.
9 billion while the required reserves stood at JD1.
As long as the interest rate on banks' required reserves is not lower than banks' funding costs, China can continue to raise banks' reserve requirement ratios, said Wu, who is also a former deputy governor of the central bank.
The metal was little moved by news China's central bank would raise lenders' required reserves by 50 basis points.
764 billion including overnight window deposits held at the bank, while the volume of required reserves was JD1.
China cut its benchmark interest rates and required reserves.