means a deposit to ensure the quality of the vehicle. You can use this fund to operate if there are any problems in the future.
the reserve is a preparation set in the project plan to reduce the cost and schedule risk. Reserve is a fund established to cope with future repurchase, redemption of capital debts or prevention of unexpected losses, including loan and securities loss reserves and sinking funds.
the English name is: reserve
The commonly used modifiers of this term further specify what kind of risks to mitigate. However, the specific meanings of these modifiers vary with the application fields. For example, management reserve, emergency reserve and so on.
China's deposit reserve system was established in 1984. In the past 2 years, the deposit reserve ratio has undergone six adjustments. Since 1998, with the transformation of monetary policy from direct regulation to indirect regulation, China's deposit reserve system has been continuously improved; According to the needs of macro-control, the deposit reserve ratio has been adjusted twice: in March 1998, the deposit reserve ratio was lowered from 13% to 8%, and in November 1999, the deposit reserve ratio was lowered from 8% to 6%. At 6: 3 pm on November 19, 21, the central bank again adjusted the deposit reserve ratio of RMB for deposit-taking financial institutions by .5 percentage points, which was the fifth time that the central bank raised the deposit reserve ratio this year.
the deposit reserve policy is one of the three traditional monetary policy tools. Generally speaking, when the economy is overheated, the tendency of financial institutions to lend money increases, and the loan risk caused by the inability to repay future funds also rises, the central bank will raise the reserve interest rate, or even raise the reserve ratio, to cool the economy; On the contrary, the central bank will consider lowering the reserve interest rate and even the reserve ratio to stimulate the bank's lending behavior. At present, the statutory reserve ratio of China's central bank is 6%, but in addition, commercial banks have an excess reserve of 4-6%, which means that 1% to 12% of the deposits absorbed by commercial banks are deposited in the reserve account of the central bank, and are not used to provide loans to enterprises. In February 22, the central bank lowered the deposit reserve interest rate from 2.7% on June 1, 1999 to 1.89%, but the excess reserve ratio of commercial banks is still above 4%. Therefore, the central bank has much to do to reduce the reserve interest rate. In fact, in developed countries such as the United States, the central bank does not pay interest on the reserve, so the central bank's reduction of the reserve interest rate can also be referenced by countries.