Reserve requirements and Solicited rating: Difference between pages

Revision as of 14:20, 23 October 2012

In relation to credit ratings, a credit rating requested by - and generally paid for by - the issuer of the obligation being rated.

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-''Banking''
+In relation to credit ratings, a credit rating requested by - and generally paid for by - the issuer of the obligation being rated.
-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.
-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.
+== See also ==
+* [[Credit rating]]
+* [[Unsolicited rating]]
-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 ==
-* [[Capital adequacy]]
-* [[Monetary policy]]
-* [[Interest on excess reserves]]
-* [[RRR]]