Bank deposits that are held in reserve to comply with requirements of the Federal Reserve Board. Banks are required to hold a certain percentage of their deposits in their vaults or at a Federal Reserve bank. The deposits do not earn interest. Also called reservable deposits.
Related information about sterile reserves:
- What is sterile reserves? definition and meaning
Definition of sterile reserves: Bank deposits that are held in reserve to comply with requirements of the Federal Reserve Board. Banks are required to hold a ...
- What is sterile investment? definition and meaning
stepped coupon b... stepped up basis · step-up bond · step-up lease · step-up warrant · sterile reserves · sterilization · sterilized inter... sterling · sterling area ...
- Reservable Deposit Definition | Investopedia
... Reserve's board of governors and are a tool of monetary policy. The required reserves are also known as "sterile reserves," because they do not earn interest.
- Paul Krugman on Ben Bernanke's 'Green Shoots' | PBS NewsHour
Jun 20, 2012 ... What they need to do is to unlock short-term funds by lowering the 25-basis point interest rate paid to banks for holding sterile reserves at the ...
- Reserve Management - Carreker
Companion accounts cut sterile reserves. By Steve Cocheo, executive editor, ABA Banking Journal — November 2001. Sterile reserves tie up dollars that could ...
- 12 USC § 4801 - Incorporated definitions | LII / Legal Information ...
“(2) the appropriateness of paying a market rate of interest to insured depository institutions on sterile reserves or, in the alternative, providing for payment of ...
- Bernanke: Cutting Interest Rate on Reserves to Zero Would Provide ...
Nov 20, 2012 ... A better policy would be for the Fed to charge the banks a penalty rate on their excess (idle and sterile) reserves. Give them an incentive to loan ...
- Why exactly does the Fed pay interest on reserves?
Dec 9, 2008 ... Remember sterile reserves? I.e., legal reserves represented a "tax". This is the theoretical interpretation as advocated by the late Dr. Milton ...