2 ms·
Huh, indeed. I found this on the RBA website. "The Reserve Bank’s reserve requirements are not a Required Reserve Ratio (they are not set as a percent of the f
by cjbgkagh 4y ago
Huh, indeed. I found this on the RBA website.
"The Reserve Bank’s reserve requirements are not a Required Reserve Ratio (they are not set as a percent of the financial institution’s liabilities). The Reserve Bank’s reserve requirements are set annually as an AUD amount per financial institution with the aim of ensuring that each institution has sufficient funds to settle AUD transactions after business hours. The amount is set taking into account the historical pattern of each institution’s AUD transactions."
Is there any information on what those figures are because it's kind of important when calculating money supply? If not the RBA could 'print' large amounts of money and not tell anyone.
- deleted 4y ago[deleted]
- JumpCrisscross 4y agoThis sounds like the discretionary component of all capital-requirement systems. > the RBA could 'print' large amounts of money and not tell anyone The RBA publishes accounts and money-supply estimates. Also, all banks can create money. Estimating money supply from capital requirements isn’t precise.