Reserve ratio

Repurchase price the price at which the buyer is obliged to sell back assets to the seller in relation to a transaction under a repurchase agreement .

Reserve ratio the ratio defined by the central bank for each category of eligible balance sheet items included in the reserve base .

Reserve account an account with the national central bank on which a counterparty 's reserve holdings are maintained .

Reserve ratio the ratio defined by the central bank for each category of balance sheet items included in the reserve base .

Repurchase date the date on which the buyer is obliged to sell back assets to the seller in relation to a transaction under a repurchase agreement .

Within the minimum reserve framework of the Eurosystem , the reserve requirement of a credit institution is calculated by multiplying the reserve ratio for each category of items in the reserve base with the amount of those items on the institution 's balance sheet .

Reserve ratio the ratio defined by the central bank for each category of eligible balance sheet items included in the reserve base .

The Governing Council has published a quantitative definition of price stability in order to give clear guidance to expectations of future price developments .

This reserve ratio is specified in the ECB Regulation on minimum reserves .

Box 11 Reserve base and reserve ratios A. Liabilities included in the reserve base and to which the positive reserve ratio is applied Deposits

Projections the results of exercises conducted four times a year to project possible future macroeconomic developments in the euro area . Eurosystem staff projections are published in June and December whereas European Central Bank ( ECB ) staff projections are published in March and September .

This reserve ratio is specified in the ECB Regulation on minimum reserves .

Open market operation an operation executed on the initiative of the central bank in the financial market . With regard to their aims , regularity and procedures , Eurosystem open market operations can be divided into four categories main refinancing operations

B. Liabilities included in the reserve base and to which a zero reserve ratio is applied Deposits

In order to determine an institution 's reserve requirement , the reserve base is multiplied by a reserve ratio .

Repurchase agreement an arrangement whereby an asset is sold while the seller simultaneously obtains the right and obligation to repurchase it at a specific price on a future date or on demand .

The Harmonised Index of Consumer Prices is the outcome of these efforts . Harmonised long term interest rates Protocol No. 6 on the convergence criteria referred to in Article 109j ( 1 ) of the Treaty requires interest rate convergence to be measured by means of interest rates on long term government bonds or comparable government securities , taking into account differences in national definitions .

The ECB applies a uniform positive reserve ratio to most of the items included in the reserve base .

The ratios are used to calculate reserve requirements . Reserve requirement the requirement for credit institutions to hold minimum reserves with the central bank .

It also provides the framework for explaining monetary policy decisions to the public . OLAF ( European Anti Fraud Office ) the office of the European Commission which investigates fraud and other irregular action in the European Community in the case of a reasoned suspicion .

The reference value is derived in a manner which is consistent with and serves the achievement of the Governing Council 's definition of price stability on the basis of medium term assumptions regarding trend real GDP growth and the trend in the velocity of circulation of M3 .

The projections , which are published twice a year , form part of the monetary policy strategy of the ECB and are one of several inputs into the Governing Council 's assessment of the risks to price stability .

In order to determine the final reserve requirement , each credit institution is allowed to deduct a lumpsum allowance of Euros 100,000 from the resulting amount .

The ECB applies a uniform non zero reserve ratio to most of the items included in the reserve base .

The ECB establishes and maintains a list of institutions subject to the Eurosystem 's minimum reserve system .

The counterparties settlement accounts with the national central banks may be used as reserve accounts .

The amount of required reserves to be held by each institution is determined by its reserve base multiplied by a reserve ratio .

As can be seen from Table 4.2 , neither long term liabilities nor repurchase agreements are subject to a positive reserve ratio .

This is a feedback box called a petition box.

Aspect Ratio Crop

The continued deterioration of budget balances and the rising debt to GDP ratio is also reflected in the amount of outstanding government debt securities ( see Box 8 ) .

Nevertheless , there are still important cross country differences in the overall size of reserve requirements , both as a percentage of the liabilities base and as a ratio to GDP .

Box model box, grid, stack, deck, etc.

Combo Popdown

Toolkit

Inbox

Foreign reserves

Reserve ratios

DELIVERY CALENDAR FOR MACRO RATIO STATISTICS Covering the reference period January 2003 December 2003 Reporting of macro ratio statistics

They form part of the economic analysis pillar of the monetary policy strategy of the ECB and are thus one of several inputs into the Governing Council 's assessment of the risks to price stability . Real time gross settlement ( RTGS ) system a settlement system in which processing and settlement take place on an order by order basis ( without netting ) in real time ( continuously ) ( see also TARGET ) .

the minimum allotment ratio ( if any )

the minimum allotment ratio ( if any )

the minimum allotment ratio ( if any )

Article 9 Macro ratio statistics