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This actuarial required reserve may be higher or lower than the actual reserve balance at Fiscal Year End.
The Bank of Korea raised the required reserve ratio on demand deposits to 7percentt from 5percentt, it said Thursday in a statement.
It has cut banks' required reserve ratio in three steps since November to free up new lending, and it cut interest rates in June and July.
The central bank also adjusts the required reserve ratio, which determines how much cash is available to banks for lending, more often than it does interest rates.
On the face of it, the cut in the required reserve ratio (RRR) to 18.5% looks like a big dollop of cash.
It is the largest cut in Chinese banks' required reserve ratio (RRR) since late 2008, the nadir of the global financial crisis.
Similar(33)
Moreover, the Fed pays interest on excess reserves as well as required reserves.
Required reserves play little role in the monetary policies of developed economies.
The research results obtained were used to determine the critical rainfall distribution in time which required reserving the highest capacity of stormwater reservoir.
They also held required reserves for "transaction deposits" that include checking deposits.
The rest of the $85 billion, approximately 18.5percentt (or $15.72 billion) continues to circulate or is held as required reserves on banks' deposit accounts (unlike unrequired excess reserves).
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CEO of Professional Science Editing for Scientists @ prosciediting.com