The summary of Greenspan's testimony suggests that the Federal Reserve lowered reserve requirements
on transaction deposits in 1992 to improve the profitability of depository institutions and thus encourage them to lend more.
Such assets earn no interest when they meet reserve requirements
, and traditionally the requirements have led banks to hold greater amounts of these nonearning assets than were optimal for business purposes.
To be useful in policy analysis and empirical studies, aggregate quantity data on bank reserves must be adjusted for the effects of changes in statutory reserve requirements
on the quantity of reserves held by banks.
The related issue of what determines short-run fluctuations in reserve requirements
has received somewhat more attention.
Taipei -- A decision by the Taiwan central bank to cut commercial banks' reserve requirements
could help stimulate the island's rapidly receding economic growth, analysts say.
In section II, I examine the cross-country evidence, asking whether the data suggest that countries with high reserve requirements
or high inflation rates grow more slowly than those with low reserve requirements
The Central Bank on April 15 expanded the range of bank liabilities covered by cash reserve requirements
to include commercial paper and all other credit and fund raising instruments.
Indeed, most depository institutions can now meet reserve requirements
by holding vault cash rather than by maintaining balances at the Federal Reserve.
Release date- 05082019 - Press Release on Reserve Requirements
BANKING AND CREDIT NEWS-August 5, 2019--Turkish central bank increases forex deposits' reserve requirements
M2 EQUITYBITES-August 5, 2019--Turkish central bank increases forex deposits' reserve requirements
Global Banking News-August 5, 2019--Turkish central bank increases forex deposits' reserve requirements