RESERVE REQUIREMENTS


Meaning of RESERVE REQUIREMENTS in English

The minimum amount of reserves a credit institution is required to hold with a central bank. In the minimum reserve framework of the Eurosystem, the reserve requirement of a credit institution is calculated by multiplying the reserve ratio for each category of items in the reserve base by the amount of those items on the institution's balance sheet. In addition, institutions are allowed to deduct a lump-sum allowance from their reserve requirement.

European Central Bank English Glossary.      Английский глоссарий Европейского Центрального Банка.