Cash Reserve Ratio
/ˈkæʃ rɪˌzɜrv ˈreɪʃioʊ/
Definitions
- (n.) The mandatory minimum percentage of a bank's total deposits that must be held as reserves and not lent out, regulated by central banking authorities.
The central bank increased the cash reserve ratio to control inflation by limiting the funds banks could loan.
Forms
- cash reserve ratio
- cash reserve ratios
Related terms
See also
Commentary
Often adjusted by regulators to influence banking liquidity and credit availability; essential in financial regulation and monetary control.
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