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Regulatory Bank Reserve Requirement

Regulatory bank reserve requirement is a requirement that commercial banks hold a minimum amount of reserves, either in cash or at a central bank, in order to meet their obligations and ensure the stability of the financial system. Regulatory bank reserve requirements are set by central banks and other financial authorities, and may be adjusted as a tool to implement monetary policy. Continue Reading Below

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About Regulatory Bank Reserve Requirement

Regulatory bank reserve requirement is a requirement that commercial banks hold a minimum amount of reserves, either in cash or at a central bank, in order to meet their obligations and ensure the stability of the financial system. Regulatory bank reserve requirements are set by central banks and other financial authorities, and may be adjusted as a tool to implement monetary policy.