Reserve requirements and Sovereign wealth fund: Difference between pages

Revision as of 09:39, 3 August 2018

(SWF).

An investment fund owned by a sovereign government, whose investment strategies include investing in foreign assets.

For example, the Qatar Investment Authority (QIA).

Also known as a sovereign fund.

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-''Banking''
+(SWF).
-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 investment fund owned by a sovereign government, whose investment strategies include investing in foreign assets.
-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.
+For example, the Qatar Investment Authority (QIA).
-The greatest possible ratio would be 100%.  This is known as '100% reserve banking'.
+Also known as a ''sovereign fund''.
-Any smaller ratio is known as 'fractional reserve banking'.
 == See also ==
-* [[Capital adequacy]]
+* [[Investment fund]]
-* [[Monetary policy]]
+* [[Qatar]]
-* [[Interest on excess reserves]]
+* [[Sovereign]]
-* [[RRR]]
-[[Category:Accounting,_tax_and_regulation]]
-[[Category:The_business_context]]
-[[Category:Corporate_finance]]
 [[Category:Investment]]
-[[Category:Long_term_funding]]
-[[Category:Identify_and_assess_risks]]
-[[Category:Manage_risks]]
-[[Category:Risk_frameworks]]
-[[Category:Cash_management]]
-[[Category:Financial_products_and_markets]]
-[[Category:Liquidity_management]]