reserve requirements
instruction about the amount of reserves a bank must maintain
Reserve requirement
Reserve requirements
The percentage of different types of deposits that member banks are required to hold on deposit at the
Fed.
reserve requirements
The minimum amount of reserves a credit institution is required to hold with a central bank. In the minimum reserve framework of the Eurosystem, the reserve requirement of a credit institution is calculated by multiplying the reserve ratio for each category of items in the reserve base by the amount of those items on the institution's balance sheet. In addition, institutions are allowed to deduct a lump-sum allowance from their reserve requirement.
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European Central Bank, Frankfurt am Main, Germany. This information may be obtained free of charge through the
ECB's website.
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