"requirements4" - 1 õppematerjal

Basic banking

.. Money). Under the requirements of Eurosystem's minimum reserve system the credit institutions are obliged to hold minimum reserves with the National Central Bank. The reserve base of an institution is defined in relation to elements of its balance sheet's liability side. In United States the reserves may be in the form of deposit with the Federal Reserve Bank or in the form of the cash held in the credit institution. Reserve requirements4 are set in Europe on the level of 2% of deposit-type liabilities (reacting to the economic conditions after the crisis the ECB has relaxed the minimum reserve requirement and it is currently on the level of 1%). According to ECB, the Eurosystem's minimum reserve system pursues the following monetary policy functions: 4 THE SINGLE MONETARY POLICY IN STAGE THREE. General documentation on Eurosystem monetary policy instruments and procedures, European Central Bank, November 2000, http://www.ecb