What Are Bank Reserves?
For security reasons, banks need to withdraw a certain percentage of deposits to ensure that depositors withdraw funds, and the remaining deposits can be used for lending or investment. This part of the deposit is called bank reserve.
Bank reserve
Right!
- Chinese name
- Bank reserve
- Foreign name
- Bank reserves
- For security reasons, banks need to withdraw a certain percentage of deposits to ensure that depositors can withdraw money, and the remaining deposits can be used for lending or investment. This part of the deposit is called bank reserve.
- silver
- Bank reserve refers to a portion of deposits that banks keep in the form of cash on hand, or in the form of interest-free deposits with central banks. By increasing the bank reserve, the central bank can reduce bank loans and curb economic overheating. By lowering the bank reserve interest rate and increasing the pressure on deposit interest on the bank itself, the central bank can force some of these deposits to flow out of the bank and stimulate investment growth. On October 3, 2003, the People's Bank of China increased the deposit reserve ratio by 1 percentage point, and raised the deposit reserve ratio from 6% to 7%.