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 ?
A fundamental principle of this analysis is the concept of the effective reserve requirement (ERR), defined as the ratio of required reserves to total deposits.
While the Association's new ratings do not modify reserve requirements for the highest-quality credits or increase the maximum required reserves, they do classify four additional intermediate levels of credit quality and accelerate the annual required additions to reserves for placements in these categories.
The new law has also made changes to the required reserves, as well as debt restructuring.
The recent positive action on the Philippines' credit score by S&P Global Ratings may speed up the "inevitable" reduction in the Bangko Sentral ng Pilipinas' (BSP) key policy rates and lenders' required reserves.
To offset the increased amount of required reserves this update entails, the Bank of Russia has decided that, effective from 1 April 2019, the following required reserve ratios will be concurrently reduced by 0.25 percentage points to 4.75%:
The UAE's monetary base expanded by 1.1 per cent to Dh354 billion ($96.3 billion) during June from Dh350 billion ($95.2 billion) in May mainly due to increases in banks' required reserves, said a report.
Net FX reserves (FX reserves less banks' FX balances on account of required reserves and other requirements) came at EUR 9,076.0 mn at end-May, up by EUR 451.0 mn from end-April, which is their highest level at the end of the month since 2000.
Amman, April 10 (Petra) -- The Central Bank of Jordan, CBJ announced that the volume of required reserves stood at JD1.63 billion, while the volume of excess reserves, including overnight window deposits held at bank reached JD2.66 billion.
China's central bank currently pays a 1.62 percent interest rate on commercial banks' required reserves, while the interest rate on demand deposits stands at 0.40 percent, and the one-year deposit rate is at three percent.
5.The Bank added that the volume of excess reserves, including overnight window deposits held at CBJ, is JD3.638 billion while the volume of required reserves is JD1.05 billion.No overnight repurchase agreements were held with CBJ on Wednesday, the Bank further said.Amman Airport to go commercial Ministry of Transport (MoT) and Jordan Airports Company (JAC) will develop Amman Airport on commercial basis, according to MoT Secretary General Muhannad Qudah who added that the project will include developing the passengersAAE terminal and other commercial facilities
The BOJ transferred 317.1 billion yen, or the net income minus legally required reserves, to the state coffers.
Only 2% of the growth in current account balances has been used to meet increased need for required reserves. Although they account for only this small portion of current account balances' massive increase, required reserves nonetheless grew 4.8% over the past year (June 2001-June 2002), while nominal GDP probably fell over the same period.