An important liquidity ratio indicating the extent of a bank's cash reserves relative to its total liabilities. Essential for ensuring a bank's ability to meet short-term obligations.
Actions by the Federal Reserve System to decrease the money supply by curtailing the funds banks have available to lend.
The Federal Reserve Board (FRB) is the governing body of the Federal Reserve System, responsible for setting key policies, including reserve requirements, bank regulations, and discount rates.
An International Banking Facility (IBF) is a banking service that allows U.S. banks to offer international banking services without being subject to certain domestic regulations. This facilitates eurocurrency lending activities and provides advantages akin to offshore banking.
Mandatory Liquid Assets (MLA) are specific financial reserves and assets that regulatory authorities require banks and financial institutions to maintain to ensure liquidity and financial stability.
Monetary policy comprises the procedures by which governments or central banks try to affect macroeconomic conditions by influencing the supply of money. This can be achieved through various mechanisms aside from printing more money, including open-market operations, adjusting reserve requirements, and changing interest rates.
