PDF4PRO ⚡AMP

Modern search engine that looking for books and documents around the web

Example: dental hygienist

Reserve Requirements: History, Current Practice, and ...

Reserve Requirements: History, Current Practice, and potential ReformJoshua N. Feinman, of the Board s Division ofMonetary Affairs, prepared this article. JanaDeschler and Christoph Hinkelmann providedresearch requiring banks and other depository institu-tions to hold a certain fraction of their deposits inreserve, in very safe, secure assets, have been a partof our nation s banking history for many years. Therationale for these requirements has changed overtime, however, as the country s financial systemhas evolved and as knowledge about how reserverequirements affect this system has grown. Beforethe establishment of the Federal Reserve System, Reserve requirements were thought to help ensurethe liquidity of bank notes and deposits, particu-larly during times of financial strains.

potential earnings rate on idle balances, the lost interest income due to reserve requirements totals only about $700 million, at an annual rate, based on $231⁄2 billion of balances. About $600 million of this would have accrued to commercial banks and their customers; even in the unlikely event that banks were able to retain all of this ...

Tags:

  Potential

Information

Domain:

Source:

Link to this page:

Please notify us if you found a problem with this document:

Spam in document Broken preview Other abuse

Transcription of Reserve Requirements: History, Current Practice, and ...

Related search queries