Reserve requirements and Standard variable rate: Difference between pages

Revision as of 12:19, 31 March 2021

Mortgage lending - interest rates.

(SVR).

A standard variable rate is a rate of mortgage interest set by the lender, that they have the discretion to change from time to time.

It is usually more expensive for the borrower overall, compared with other mortgage deals.

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-''Banking''.
+''Mortgage lending - interest rates.''
-The minimum ratio of vault cash and balances ('[[reserves]]') with the [[central bank]] to deposits taken by the bank that the central bank requires commercial banks to hold.
+(SVR).
-An increase in minimum reserve requirements will be likely to lower the supply of money in the economy as banks undertake less lending, and vice versa.
+A standard variable rate is a rate of mortgage interest set by the lender, that they have the discretion to change from time to time.
+It is usually more expensive for the borrower overall, compared with other mortgage deals.
-The greatest possible ratio would be 100%.  This is known as '100% reserve banking'.
-Any smaller ratio is known as 'fractional reserve banking'.
+== See also ==
+* [[Interest rate]]
+* [[Mortgage]]
+* [[Variable rate]]
+[[Category:The_business_context]]
-== See also ==
+[[Category:Financial_products_and_markets]]
-* [[Monetary policy]]
-* [[Interest on excess reserves]]