Reserve requirement refers to the portion or percentage of cash from deposits that banks must keep on hand, which they cannot lend out or invest, to ensure they have enough money to meet liabilities.

Changes to the federal funds rate ... When the Fed lowers the reserve requirement for a bank, it effectively creates more liquidity in the financial markets, thus increasing the monetary supply.

MANILA, Feb 21 (Reuters) - The Philippine central bank on Friday said it was reducing the reserve requirement ratio (RRR) for banks by 200 basis points from late March. The reduction will bring ...

The BSP had said that changes in reserve requirements have a significant effect on money supply in the banking system, making them a powerful means of liquidity management. “The BSP reiterates ...