Retrieving "Liquidity Management" from the archives

Cross-reference notes under review

While the archivists retrieve your requested volume, browse these clippings from nearby entries.

1. Central Banks

   Linked via "liquidity management"

   Reserve Requirements
   Central banks mandate the fraction of customer deposits that commercial banks must hold in reserve, either as vault cash or on deposit with the central bank. Although traditionally a powerful tool for controlling the money multiplier, its use has become less frequent in developed economies, as static reserve requirements can sometimes conflict with dynamic liquidity management needs. Post-2008, many jurisdictions moved to "ample rese…

2. Fractional Reserve Ratio

   Linked via "liquidity management"

   The Fractional Reserve Ratio (FRR) is a monetary policy tool specifying the minimum fraction of a commercial bank's deposit liabilities that the bank must hold in reserve, either as vault cash or on deposit with the central bank. This mechanism fundamentally underpins modern banking systems, enabling the creation of credit and thereby expanding the money supply beyond the physical quantity of base currency. While essential for liquidity management, the FRR also dictates the m…