It is called Cash Reserve Ratio. It is the % of money from the amount collected from depositors that needs to be maintained as deposit with the reserve bank. The bank cannot use this money for its financial needs. For Ex: if the CRR is 5% and you deposit $1000 into your account, the bank has to deposit $50 against your name
70%
this is the amount of deposit the central bank authorise bank to keep them
reserve ratio
Cash and near cash/Customers deposit and other current liabilities
It is called Cash Reserve Ratio. It is the % of money from the amount collected from depositors that needs to be maintained as deposit with the reserve bank. The bank cannot use this money for its financial needs. For Ex: if the CRR is 5% and you deposit $1000 into your account, the bank has to deposit $50 against your name
Reserve
70%
Reserve
Reserve
this is the amount of deposit the central bank authorise bank to keep them
Reserve
required reserve ratio. This ratio is set by the central bank and determines the minimum amount of reserves that a bank must hold relative to its deposits. It helps ensure the stability of the banking system and manage the money supply in the economy.
reserve ratio
Cash and near cash/Customers deposit and other current liabilities
The Federal Reserve provides deposit insurance and acts as a lender to commercial banks.
Ore