Talk:Bank reserves

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Clarification required[edit]

"Bank reserves are banks' holdings of deposits in accounts with their central bank." By "deposits" do we mean the deposits of the bank's client or deposits of the bank itself?

"Bank Reserves" in the United States refers to those reserves that are required to meet required reserve amounts. These reserves are held as two different forms of central bank money:

1. Cash as banknotes

2. Reserve balances which are deposits of cash held in accounts for that particular bank that are administered by the federal reserve banks

Therefore the central bank is administrator of the systems that manage the reserve balances to enable banks to settle between each other, but is not itself the owner of the deposits.

Customer deposits held at a commercial bank are in the form of created commercial bank money which is an iou for cash/currency/banknotes, where the commercial bank becomes the owner of the originating bank reserves deposited by the customer or on their behalf by another bank when this is the case.

Unlike commercial bank money which is always created for the customer when reserve balances are received by the bank or a loan deposit is created, these reserves balances are received as reserve balances and stored as reserve balances in the accounts held at the federal reserve for that particular bank. Andrewedwardjudd (talk) 17:01, 6 April 2011 (UTC)andrewedwardjudd

Dr. McAndrews's comment on this article[edit]

Dr. McAndrews has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:


The second paragraph is confusing, and really off-point, and should be deleted.

The last sentence of the first paragraph should be amended to say "Even when there are no reserve requirements, banks often op to hold some reserves--called desired reserves, or reserve demand--to cover net depositor withdrawals resulting from payments or bank runs, or to earn interest that the central bank may pay on reserves."


We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.

Dr. McAndrews has published scholarly research which seems to be relevant to this Wikipedia article:


  • Reference : Antoine Martin & James McAndrews & Ali Palida & David Skeie, 2013. "Federal Reserve tools for managing rates and reserves," Staff Reports 642, Federal Reserve Bank of New York.

ExpertIdeasBot (talk) 15:51, 19 May 2016 (UTC)

Dr. Martin's comment on this article[edit]

Dr. Martin has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:


I would suggest removing "in the latter case including federal funds" which seems unnecessary and is, i believe, incorrect. Federal funds are a type of transaction.


We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.

Dr. Martin has published scholarly research which seems to be relevant to this Wikipedia article:


  • Reference : Antoine Martin & James McAndrews & Ali Palida & David Skeie, 2013. "Federal Reserve tools for managing rates and reserves," Staff Reports 642, Federal Reserve Bank of New York.

ExpertIdeasBot (talk) 22:38, 28 May 2016 (UTC)