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- Legal reserve requirements refer to the minimum percentage of total deposits required to be kept by commercial banks themselves and with the central bank1. Reserve requirements are central bank regulations that set the minimum amount that a commercial bank must hold in liquid assets2. This minimum amount is generally determined by the central bank on the basis of a specified proportion of deposit liabilities of the bank2. Reserve requirements are defined as the percentage of a depository institution’s cash that the central bank mandates it has on hand, rather than being lent out or invested3.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Legal reserve requirements refer to the minimum percentage of total deposits (time deposits and demand deposits), required to be kept by the commercial banks themselves and with the central bank.www.toppr.com/ask/question/what-is-meant-by-leg…Reserve requirements are central bank regulations that set the minimum amount that a commercial bank must hold in liquid assets. This minimum amount, commonly referred to as the commercial bank's reserve, is generally determined by the central bank on the basis of a specified proportion of deposit liabilities of the bank.en.wikipedia.org/wiki/Reserve_requirementReserve Requirements are defined as the percentage of a depository institution’s cash that the central bank mandates it has on hand, rather than being lent out or invested.www.wallstreetprep.com/knowledge/reserve-requir…
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