Reserve requirements

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 ?
In deciding to reduce the reserve requirement ratios, the Monetary Board reaffirms the BSP's commitment to gradually lessen its reliance on reserve requirements for managing liquidity in the financial system,' Espenilla said.
Espenilla also signaled more reductions on the deposit reserve as he vowed to 'gradually lessen its reliance on reserve requirements for managing liquidity in the financial system.
The provision has been cancelled regarding the permissible number of non-compliances with daily reserve requirements during three consecutive reserve maintenance periods.
The Lebanon (BDL) central bank has said that it is to cut the reserve requirements for banks that provide soft loans to manufacturing companies that export at least 50 percent of their output.
The reserve requirements for deposit-taking trust and finance companies, and merchant banks also remain unchanged.
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).
The Federal Reserve Board announced its 2015 reserve requirements on November 14, 2014.
Reserve requirements for similar liabilities of between one and two years' maturity rise to 13 per cent from 11 per cent.
8 September 2014 -- Atlanta US-based financial software firm CetoLogic said that Philadelphia US-based American Heritage Federal Credit Union will implement the company's Deposit Reclassification solution as a preventative measure against future 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.
The central bank governor of Uruguay has said that the bank could increase its reserve requirements in order to fight inflation.
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.