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Reserve requirements from the central bank were high compared to recent times.
What effect does a change in the reserve requirement have on the money supply?
A higher reserve requirement means less money will be available for loans, which would slow economic growth.
The central banks of some nations set minimum reserve requirements.
Possible measures include further increases in bank reserve requirements and maybe higher interest rates.
"Further reserve requirement cuts will follow over the next few months.
Reserve requirements do not apply to the amount of money a bank may lend out.
The latest tightening takes the form of higher reserve requirements for banks.
Rents are set by the city to reflect operating costs and reserve requirements only.
Finally, reducing reserve requirements for the fund cannot long remain an isolated act.
The rate is what banks charge each other on overnight loans to meet reserve requirements.
Witness the decision by China's central bank to cut reserve requirements for commercial lenders earlier this week.
Each bank or lender's asset and reserve requirements will vary.
On Wednesday, it raised reserve requirements for commercial banks.
He also suggested raising the reserve requirements on private banks up to 50%.
Thus they will lend to each other until each bank has reached their reserve requirement.
Reserve requirements have also been used in the past to control the stock of banknotes and/or bank deposits.
A reserve requirement is a ratio a bank must maintain between deposits and reserves.
Banks can respond by shifting activities to offshore sites without reserve requirements.
There, the bank did not have to meet Venezuelan reserve requirements or pay deposit insurance taxes.
It also eliminated a reserve requirement on some commercial bank deposits, which made more money available for lending.
The reserve requirement is currently 3 percent to 10 percent of a bank's total deposits.
The reserve requirement therefore acts as a limit on this multiplier effect.
This is about capital levels, not reserve requirements.
M0 is also the only money that can satisfy the reserve requirements of commercial banks.
