Central Bank Balances and Reserve Requirements / Simon Gray.

Format:

Book

Government document

Author/Creator:

Gray, Simon.

Contributor:

International Monetary Fund.

Series:

IMF Working Papers; Working Paper ; No. 2011/036

IMF Working Papers

Language:

English

Subjects (All):

Banks and banking, Central.

Bank reserves.

Physical Description:

1 online resource (90 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2011.

Language Note:

English

Summary:

Most central banks oblige depository institutions to hold minimum reserves against their liabilities, predominantly in the form of balances at the central bank. The role of these reserve requirements has evolved significantly over time. The overlay of changing purposes and practices has the result that it is not always fully clear what the current purpose of reserve requirements is, and this necessarily complicates thinking about how a reserve regime should be structured. This paper describes three main purposes for reserve requirements - prudential, monetary control and liquidity management - and suggests best practice for the structure of a reserves regime. Finally, the paper illustrates current practices using a 2010 IMF survey of 121 central banks.

Contents:

Cover Page; Title Page; Copyright Page; Contents; Abstract; Glossary; I. Introduction; II. The Purpose of Reserve Requirements; A. Prudential; B. Monetary Control; C. Liquidity Management; III. Reserves Remuneration as a Policy Signal; 1. Norway: Short-term Interest Rates; 2a. United States: Policy Rates and Overnight Interbank Rate; 2b. United Kingdom: Policy Rates and Overnight Interbank Rate; IV. Recent Trends; 1. Reserve Requirements by Income Level in 2010; 3. Levels of Reserve Requirements within Bands; V. Technical Issues; A. The Reserve Requirement Base

B. Should Reserve Requirements Rates be Uniform?2. Detailed Reported Breakdown of Reserve Requirements; C. How Should Reserve Requirements be Held?; 4. Currency of Denomination of Reserve Requirements on Foreign Currency Liabilities; D. Remuneration; 3. Remuneration Rates, 2010; E. Averaging of Reserve Requirements; 5. Number of Central Banks that Have a Holding Period Averaging by Region; F. Length and Structure of the Reserve Maintenance Period; 4. Maintenance Periods; 6. United Kingdom: Pattern of Reserve Fulfillment; 7. Eurosystem: Pattern of Reserve Fulfillment

8. Australia: Level of ReservesG. Carry-over and Bands; H. Penalty Rates; I. Impact of Reserve Requirements on Interest Rate Spreads; II. Reserve Requirements and Liquidity; III. The European Central Bank Reserve Base and Reserve Ratios; 1. Reserve Base and Reserve Ratios; IV. Bank of England Definition of Eligible Liabilities; V. United States Reserve Requirements; 5. United States Reserve Requirements-Historical Changes; 6. United States Reserve Requirements-Current Levels; VI. Use by Chile of Reserve Requirements on Foreign Exchange Inflows; VII. Reserve Requirement Levels; References

Footnotes

Notes:

Description based upon print version of record.

Includes bibliographical references.

Description based on online resource; title from PDF title page (ebrary, viewed September 27, 2014).

ISBN:

9786613873927

9781462380800

1462380808

9781462309160

146230916X

9781283561471

1283561476

9781455217823

1455217824