The percentage of deposits required to be held as reserves. This is held by the Federal Reserve Bank, within limits legislated by Congress.
the amount of money commercial banks are obliged to deposit with the central bank.
The percentages of different types of deposits that banks are required to hold on deposit at the Federal Reserve or as cash in their vaults. These requirements are determined by the Federal Reserve Board and function as a tool to control monetary policy.
The percentage of deposits required to be held as reserves, determined by the Federal Reserve Banking System, within limits legislated by Congress.
Requirements set by the Fed Board of Governors for the amounts that certain financial institutions must set aside in the form of reserves. Reserve requirements act as a control on the expansion of money and credit and may be raised or lowered within limits specified by law (lowering reserve requirements allows more bank lending and money growth; raising requirements, less lending and money growth).
Balances required of all depository financial institutions that must be maintained at a central bank or an approved correspondent bank. These funds cannot be lent nor do they earn interest. The amount of the reserves is set by the central bank, which has the right to impose special supplemental reserves as a means of controlling the money supply.
The percentage of deposits required to be held as reserves. This is set by the Fed, within limits legislated by Congress. Generally, reserve requirements are higher on demand deposits than on savings deposits. Reserve requirements change infrequently.
The percentage of deposits that a bank or other depository institution may not lend out or invest and must hold either as vault cash or on deposit at a Federal Reserve Bank. Reserve requirements affect the potential of the banking system to create transaction deposits.
the minimum level of reserves that the central bank requires be kept on hand or deposited with the central bank
A flat percentage of deposits, required by the Federal Reserve, to be set aside by member banks as a precaution. (See Federal Reserve)
The percentage of different types of deposits that member banks are required to hold on deposit at the Fed.
The amount of funds that banks and other depository institutions must hold as cash or as deposits with the Federal Reserve System. The Federal Reserve specifies reserve requirements depending on the level of deposits. Such requirements reduce the risk of bank failure and allow the Federal Reserve to influence the money supply. (FRB)
Requirements regarding the amount of funds that banks must hold in reserve against deposits made by their customers. This money must be in the bank's vaults or at the closest Federal Reserve Bank.
Reserves that must be held against customer deposits of banks and other depository institutions. The reserve requirement ratio affects the expansion of deposits that can be supported by each additional dollar of reserves. The Board of Governors sets reserve requirements within limits specified by law for all depository institutions (including commercial banks, savings banks, savings and loan associations, credit unions, some industrial loan banks, and US agencies and branches of foreign banks) that have transaction accounts or nonpersonal time deposits. A lower reserve requirement allows more deposit and loan expansion and a higher reserve ratio permits less expansion.
The minimum amount of cash and liquid assets as a percentage of demand deposits and time deposits that member banks of the Central Bank are required to maintain.