Reserves and SRR: Difference between pages

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imported>Doug Williamson
(Expand and add links.)
 
imported>John Grout
m (To substitute an A for the C in FDIC to refer to the Act not the body)
 
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1.  
Special resolution regime.


''Accounting''.
Provisions for [[resolution]] of failing financial institutions under appropriate legislation and regulation. In many countries provisions extend beyond banks to certain other types of institution.


Reserves represent the amount of money ‘owed’ to the owner (shareholder) of the company.
For example, in the US under [[OLA]] and [[FDIA]] that established [[FDIC]] and in the EU under the [[BRRD]].
 
In a profitable and conservative company, reserves will normally comprise a significant balance of accumulated undistributed profits.
 
 
2.
 
''Banking''.
 
Deposits maintained by non-[[central bank]] [[monetary financial institution]]s with their central bank in the latter's capacity as 'the bankers' bank'.
Central banks may require institutions to maintain minimum balances with the central bank, in which case balances in excess of the minimum are known as 'excess reserves'.
 
Of course banks publish accounts and use the term 'reserves' in the accounting sense too. Do not be confused by this.
 
 
== See also ==
* [[Central bank]]
* [[Central bank money]]
* [[Conservative]]
* [[Equity]]
* [[Interest on excess reserves]]
* [[Merger reserve]]
* [[Official reserves]]
* [[Reserve requirements]]
* [[Shareholder]]
* [[Special drawing rights]]
* [[Trapped cash]]
 
[[Category:Long_term_funding]]

Revision as of 11:07, 13 August 2014

Special resolution regime.

Provisions for resolution of failing financial institutions under appropriate legislation and regulation. In many countries provisions extend beyond banks to certain other types of institution.

For example, in the US under OLA and FDIA that established FDIC and in the EU under the BRRD.

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