bank reserve ratio

bank reserve ratio
Fin
a standard established by a central bank governing the relationship between the amount of money that other banks must keep on hand and the amount that they can loan out. By raising and lowering the ratio, the central bank can decrease or increase the money supply.

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  • reserve ratio — noun Etymology: reserve (II) : the ratio of the cash reserves of a bank to liabilities; especially : the ratio of gold certificates to combined deposit liabilities and outstanding Federal Reserve notes of the Federal Reserve banks * * * reserve… …   Useful english dictionary

  • Reserve Ratio — The portion (expressed as a percent) of depositors balances banks must have on hand as cash. This is a requirement determined by the country s central bank, which in the U.S. is the Federal Reserve. The reserve ratio affects the money supply in a …   Investment dictionary

  • reserve ratio — In banking, the primary reserve ratio is the ratio of the balance of Federal Reserve balance of the bank plus cash in vault to the demand deposits of the bank …   Black's law dictionary

  • reserve ratio — relation between the amount of cash at a bank s disposal and the amount of deposits deposited in the bank …   English contemporary dictionary

  • secondary reserve ratio — ratio between the government securities of the bank and its demand deposits. There is also a ratio between time deposits and Federal Reserve balances plus cash in vault …   Black's law dictionary

  • Bank regulation — Bank regulations are a form of government regulation which subject banks to certain requirements, restrictions and guidelines.Objectives of bank regulationThe objectives of bank regulation, and the emphasis, varies between jurisdiction. The most… …   Wikipedia

  • Reserve requirement — 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… …   Wikipedia

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  • Reserve Bank of India — Infobox Central bank bank name in local = भारतीय रिज़र्व बैंक image 1 = RBI Tower.jpg image title 1 = The RBI headquarters in Mumbai image 2 = image title 2 = headquarters = coordinates = established = April 1, 1935 president = Duvvuri Subbarao… …   Wikipedia

  • Bank for International Settlements — The Bank for International Settlements (or BIS) is an international organization of central banks which fosters international monetary and financial cooperation and serves as a bank for central banks. cite web… …   Wikipedia

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