As the name suggest, this is the amount banks are required to hold in receive....
A portion of a bank's funds that must be in the form of cash or readily available securities for the protection of depositors. Reserve or clearing balances are used to effect settlement between financial institutions.
the requirement by the Federal Reserve to maintain certain balances at a Federal Reserve Bank
The Federal Reserve's limit on the level of financial assets banks must keep on reserve and not lend out or reinvest. These reserves help determine how much money the banks can lend.
A proportion of deposits that banks are not allowed to lend.... more on: Reserve requirement
Requirement 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). Required reserves are funds that a depository institution is required to maintain as vault cash or on deposit with a Federal Reserve Bank.
Federal Reserve limitation imposed upon member banks requiring them to keep financial assets in the form of cash and other liquid assets as a percentage of demand deposits and time deposits.
A percentage of deposits that member banks must retain on deposit within their own walls or at the Federal Reserve Bank in their district.
The ratio of reserves to deposits, expressed as a fraction prescribed by national banking authorities including USA..
Proportion of deposits that a bank must by law keep in cash or place with the central bank.
The federal regulation that governs the percentage of deposits which a bank must keep in reserve. The remainder of the deposits are available for loans.
The obligation of a commercial bank to set aside and refrain from lending a percentage of its available currency. This is a form of protection for depositors.
Percentage of a bank's deposit that must be set aside.
The reserve requirement (or required reserve ratio) is a bank regulation that sets the minimum reserves each bank must hold to customer deposits and notes. These reserves are designed to satisfy withdrawal demands, and would normally be in the form of fiat currency stored in a bank vault (vault cash), or with a central bank.