reserves required

USAGE SUMMARY

The phrase "reserves required" is correct and usable in written English.
It can be used in contexts related to finance, banking, or resource management, indicating the amount of reserves that must be maintained. Example: "The bank must ensure that the reserves required are met to comply with regulatory standards."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

14 human-written examples

Westpac's reason for the increase in interest rates was put down to the increase in its capital reserves required under new regulations instituted by the financial regulator Apra.

The Guardian - Business

The money to buy foreign bonds has come from the reserves required that commercial banks must deposit with the central bank.

The New York Times

The way things are going, Argentina will soon fall below the minimum level of $9 billion in foreign reserves required under its existing agreements with the monetary fund.

The New York Times

Additionally, in the absence of the large reserves required of insurance companies, the incentive for the doctor to provide less care would be immediate and very powerful.

The New York Times

An especially dangerous part of the portfolio was the unit's regulatory capital book, which held derivatives that helped European banks lower the amount of capital reserves required under international accords by about $400 billion.

The New York Times

Despite Beijing's sustained tightening campaign over the past half year to control higher prices, which has included increases in reserves required of banks and in interest rates, most economists say that the economy is retaining much of its momentum.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

46 human-written examples

By law any transfer of reserves requires authorisation by Congress.

The Economist

The European Central Bank's losses alone could wipe out its capital reserves, requiring the remaining euro zone countries to make up the shortfall.

The New York Times

Foreigners may buy most properties without restriction in New Zealand, Mr. Boulgaris said, but certain properties, such as large parcels of waterfront land or land adjoining nature reserves, require would-be foreign buyers to seek approval from the Overseas Investment Office.

The New York Times

He's saying that under current conditions, ie until we enter a sustained recovery and companies start spending down their cash reserves, requiring businesses to spend more money doesn't cost jobs; it creates them.

The Economist

The efficient exploitation of new shale gas reserves requires further augmentation of the existing energy infrastructure.

Journal of Modern Power Systems and Clean Energy

Expert writing Tips

Best practice

When writing about "reserves required" in financial contexts, specify the governing body or regulation that mandates the reserves to provide clarity and context.

Common error

Avoid using "reserves required" when you actually mean general resources or assets available. "Reserves" in this context refers specifically to amounts set aside to meet obligations, not all available funds.

Linguistic Context

The phrase "reserves required" functions as a noun phrase modified by an adjective. It describes a specific type of reserves, those that are mandated or necessary, as confirmed by Ludwig AI. The phrase serves to specify or categorize the reserves being discussed.

Expression frequency: Uncommon

Frequent in

News & Media

50%

Science

30%

Formal & Business

20%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

In summary, the phrase "reserves required" is a grammatically sound term used to describe mandated or necessary reserves, particularly in financial, regulatory, and resource management contexts. Ludwig AI confirms its usability and correctness. While not extremely frequent, it is common in news, science, and business domains. It's crucial to use this phrase accurately, distinguishing it from general resources, and to specify the regulatory body when relevant. Alternatives such as "mandatory reserves" can provide similar clarity. The phrase helps inform discussions about regulatory obligations and their impacts on various entities.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

necessary reserves

Swaps the adjective, focusing on need instead of obligation or regulation.

mandatory reserves

Emphasizes the compulsory nature of the reserves.

minimum reserve requirements

Specifies that these are the minimum amounts required.

statutory reserves

Highlights that the reserves are required by law.

prescribed reserves

Suggests that the reserves are set by an authority.

obligatory reserves

Focuses on the binding nature of the reserve requirement.

regulatory reserves

Links the reserves directly to regulatory standards.

capital adequacy requirements

Broader term referring to the overall requirements for capital.

compulsory deposits

Focuses on the act of depositing as part of the reserve.

essential provisions

Highlights how reserves act as provisions that are essential for stability.

FAQs

How are "reserves required" typically used in banking?

In banking, "reserves required" usually refers to the amount of funds that banks must keep in their account at the central bank, or as vault cash. This ensures they can meet their obligations and maintain financial stability.

What happens if a bank doesn't meet its "reserves required"?

If a bank fails to meet its "reserves required", it may face penalties from the regulatory authority, such as fines or restrictions on lending activities. This can negatively impact the bank's financial health and reputation.

Can I use other terms instead of "reserves required"?

Yes, depending on the context, you can use alternatives like "mandatory reserves" or "minimum reserve requirements". These phrases convey a similar meaning and are often interchangeable.

What is the difference between "reserves required" and "excess reserves"?

"Reserves required" are the minimum amount of funds a bank must hold, as mandated by regulations. "Excess reserves" are any additional reserves held by the bank above this minimum, often due to caution or specific market conditions.