Session - 7 - FIN 441 Bank Management & Electronic...

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Bank Management & Electronic Banking FIN 441
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2 Session 7 Reserve Management
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3 Session 7 : Reserve Management Definition Dictionary of Banking and Finance —  "A portion of the bank's  fund which has been set aside for the purpose of assuring its  ability  to  meet  its  liabilities  to  depositors  in  cash.  Minimum  reserves to be maintained against demand and time deposits  are usually specialized banking law."
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4 Session 7 : Reserve Management Primary Reserve Secondary  Reserve Types of Reserve
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5 Session 7 : Reserve Management Primary Reserve Primary reserve refers to absolutely non-earning liquid  assets held by a commercial bank.     "Aggregate of cash holdings by a commercial bank  with itself and with the central bank is designated as  primary reserve.“ Constituents of Primary Reserve Cash in hand:  Balance with Central Bank:  Demand Deposit with others Bank: 
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6 Session 7 :
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This note was uploaded on 04/22/2011 for the course BBA FIN 441 taught by Professor Dewanmostafiz during the Fall '10 term at BRAC University.

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Session - 7 - FIN 441 Bank Management & Electronic...

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