2 ms·
Capital requirements, not reserve requirements.
by andrepd 6y ago
Capital requirements, not reserve requirements.
- seanhunter 6y agoReserve requirements are capital requirements. "reserve" here is capital that you reserve to withstand losses in particular classes of assets. There are also requirements for particular proportions of the capital base to be held in liquid assets (cash and near cash) in order to pay back deposits etc. //edited to make the point about liquidity