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.

The ultimate business dictionary. 2015.

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  • reserve ratio — Fin the proportion of a bank’s deposits that must be kept in reserve.      In the United Kingdom and in certain European countries, there is no compulsory ratio, although banks will have their own internal measures and targets to be able to repay …   The ultimate business dictionary

  • 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

  • bank — bank1 /bangk/, n. 1. a long pile or heap; mass: a bank of earth; a bank of clouds. 2. a slope or acclivity. 3. Physical Geog. the slope immediately bordering a stream course along which the water normally runs. 4. a broad elevation of the sea… …   Universalium

  • ratio — the proportional relationship of one thing to another * * * ratio ra‧ti‧o [ˈreɪʆiəʊ ǁ ˈreɪʆoʊ] noun [countable] a relationship between two amounts that is represented by a pair of numbers showing how much greater one amount is than the other: •… …   Financial and business terms

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