The reserve fund of China Merchants Bank refers to the capital reserve used by the bank to deal with emergencies. As a commercial bank, China Merchants Bank needs to ensure normal business operation and risk control in the face of various uncertainties. Therefore, banks will set aside some funds in the daily business process to deal with emergencies.

First of all, the reserve fund of China Merchants Bank can be used to deal with various risks. For example, if there are security problems such as system failure or hacker attacks, the reserve fund can be used as the basis for banks to respond quickly to ensure the safety of customer assets. Secondly, the reserve fund of China Merchants Bank can also be used to help banks balance risks and maintain the stability of capital operation when faced with factors such as liquidity shortage in the credit market or interest rate risk.

Management and Use of Reserve Fund of China Merchants Bank

In order to effectively exercise the reserve fund, China Merchants Bank has adopted scientific management and use methods. On the one hand, banks will classify petty cash, including emergency petty cash, basic petty cash and general petty cash. On the other hand, when using the reserve fund, China Merchants Bank will strictly examine the application to ensure that the funds are used reasonably and legally, and at the same time regularly evaluate the actual use of the reserve fund to optimize and improve the bank's operational capacity.