FRSFinal Rule
Reserve Requirements of Depository Institutions
Finance & Banking
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Summary
This Federal Reserve regulation sets rules for how much money banks and credit unions must keep in reserve rather than lend out to customers. These reserve requirements help ensure that banks stay financially stable and can handle unexpected withdrawals, which protects people's deposits and keeps the banking system working smoothly.
Key Points
- 1Banks and credit unions must hold a certain percentage of customer deposits in reserve as a safety cushion
- 2The regulation helps prevent banks from running out of money if many customers try to withdraw their funds at once
- 3Reserve requirements give the Federal Reserve a tool to influence how much money flows through the economy
- 4When reserve requirements change, it affects how much money banks can lend out for mortgages, business loans, and other purposes
- 5These rules apply to all depository institutions, including traditional banks, credit unions, and savings institutions
Key Dates
Published
November 14, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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