bank reserves
Mandatory deposit holdings
Bank reserves are funds that banks hold rather than lend out—cash in vaults plus deposits at the central bank.
Regulators require minimum reserves as a buffer against withdrawals and financial stress.
The Fed lowered reserve requirements during the crisis.
Excess reserves beyond the minimum can be lent to other banks or held for safety.
- deposit accountsBank accounts holding funds
- lender of last resortEmergency credit source for banks
- certificates of depositFixed-term bank instruments
- systemic riskEconomy-wide collapse potential
- too big to failRequiring rescue due to scale
safety net · interest rate · clearinghouse · payment systems · balance sheet · treasury bonds · savings accounts · quantitative easing · rainy day fund · term deposits · discount rate · overdraft protection · economic cycles · cash flow management · risk assessment · Keynesian economics · fiscal policy
- reservessurplus funds, nature preserve, wildlife refuge, emergency fund, rainy day fund
- monetary policyinflation, deflation, money supply, interest rates, price level
- banking regulationFDIC, capital requirements, regulatory agencies, AML, fair lending
- FedFOMC, monetary policy, interest rates, rate cut, Powell
- Money Marketsmoney market, money market funds, LIBOR, repo, repos
- money systemsmoney supply, money printing, printing money, fiat currency, paper money
bank reservesloan portfolio
Aggregated debts held by lender
working capital · bank lending · consumer credit · mortgage lending
bank, banks, banked, banking, banker, bankers, reserve, reserves, reserved