Designated investment firm and Reserves: Difference between pages

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''Bank regulation and supervision.''
''Accounting''


In the UK, the Prudential Regulation Authority (PRA) defines a designated investment firm as one which:
This represents the amount of money ‘owed’ to the owner (shareholder) of the company.
*Has, or has applied for, permission to deal in investments as principal; and
*Meets minimum amount capital requirements; and
*Qualifies under the PRA’s designation criteria.


In a profitable and conservative company, reserves will normally comprise a significant balance of accumulated undistributed profits.


The term 'designated investment firm' is sometimes used interchangeably with 'broker-dealer'.


''Banking''.


== See also ==
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 in the accounting sense also - do not be confused by this.
* [[Broker]]
* [[Broker-dealer]]
* [[Dealer]]
* [[Investment bank]]
* [[Price discovery]]
* [[Principal]]
* [[Proprietary trading]]
* [[Prudential Regulation Authority]]




== See also ==
* [[Interest on excess reserves]]
* [[Merger reserve]]
* [[Official reserves]]
* [[Reserve requirements]]
* [[Special drawing rights]]
* [[Trapped cash]]


====External link====
[[Category:Long_term_funding]]
 
[http://www.bankofengland.co.uk/pra/Pages/authorisations/designatedfirmslist.aspx PRA designated firms list]

Revision as of 11:42, 20 May 2015

Accounting.

This represents the amount of money ‘owed’ to the owner (shareholder) of the company.

In a profitable and conservative company, reserves will normally comprise a significant balance of accumulated undistributed profits.


Banking.

Deposits maintained by non-central bank monetary financial institutions 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 in the accounting sense also - do not be confused by this.


See also