Skip to content Skip to sidebar Skip to footer

Required Reserve Ratio Definition

Required Reserve Ratio Definition. The reserve ratio is expressed as a percentage of the bank's total deposits. The reserve ratio is the percentage of deposits that the federal reserve requires a bank to keep on hand at a federal reserve bank.

Lecture 33 Notes
Lecture 33 Notes from www.personal.psu.edu

Required reserve ratio is the fraction of deposits that the fed requires is kept as reserves. Means, as calculated in each monthly report, the greater of (a) the loss reserve ratio plus the dilution reserve ratio, each calculated using the class. The reserve ratio is expressed as a percentage of the bank's total deposits.

Means, For Any Settlement Period, The Greater Of (I) The Required Reserve Factor Floor For Such Settlement Period And (Ii) The Sum Of The Loss Reserve Ratio, The.


Required reserve ratio is the fraction of deposits that the fed requires is kept as reserves. Reserve requirements are requirements regarding the amount of cash a bank must hold in reserve against deposits made by customers. The liquid assets that a central bank or other body mandates that a bank keep at all times.

Required Reservesat Any Time Means The Sum Of (A) The Yield Reserve, Plus (B) The Servicing Fee Reserve, Plus (C) The Net Pool Balance Multiplied By The Greater Of (I) The Sum Of The Loss.


Also known as cash reserve ratio, it is the percentage of deposits which commercial banks are required to keep as cash according to the directions of the central bank. Means, as calculated in each monthly report, the greater of (a) the loss reserve ratio plus the dilution reserve ratio, each calculated using the class. Define minimum required reserve ratio.

To Be Held In Reserve Means That The Money Cannot Be.


The reserve ratio is expressed as a percentage of the bank's total deposits. The reserve ratio is the percentage of deposits that the federal reserve requires a bank to keep on hand at a federal reserve bank. The required percentage of reserves (deposits) that banks and thrifts must hold in cash or in deposits at the federal reserve.

The Reserve Ratio Is Expressed As A Percentage Of The Bank's Total Deposits.


This money must be in the bank's. The liquid assets that a central bank or other body mandates that a bank keep at all times. It is a percentage of the bank's deposits.

Define Class A Minimum Required Reserve Ratio.


The required reserve ratio is defined as the percentage of deposits that a commercial bank must hold in reserve. Required reserve factor floormeans, for any calculation period, the sum (expressed as a percentage) of (a) 19% plus (b) the product of the adjusted dilution ratio and the dilution. This requirement is set by the fed.

Post a Comment for "Required Reserve Ratio Definition"