Translation of "Überschussreserven" in English

Reserves can be broken down further into required and excess reserves .

Instead, the Fed will be focusing on the interest rate on excess reserves.

In the opposite scenario , they can borrow in the market and run a reserve surplus .

Reserves can be broken down further into required and excess reserves.

Excess reserves are often held in government securities.

A large part of this profit was allocated to the bonus reserves.

The demand for reserves is determined by credit institutions » need to fulfil reserve requirements and a further limited demand for « excess » reserves .

Will the explosive growth of commercial banks’ excess reserves cause rapid inflation as the economy recovers?

The link between bond purchases and the money stock depends on the role of commercial banks’ “excess reserves.”

The new round of quantitative easing will only underscore this point as excess reserves increase.

In addition to required reserves , credit institutions usually hold only a small amount of voluntary excess reserves with the Eurosystem .

First, central banks could tax cash to prevent banks from attempting to avoid the negative-rate tax on excess reserves.

Italy and Spain would then be able to refinance their debt at close to the ECB’s deposit rate, which is currently 1% on mandatory reserves and 25 basis points on excess-reserve accounts.

And, complicating things further, given US banks’ vast holdings of excess reserves as a result of the Fed’s bond-buying policies (quantitative easing), the federal funds rate is no longer the key policy rate that it once was.

The commercial banks have a great deal of liquidity, in the form of excess reserve deposits at the Fed, which could make inflationary lending a significant risk.

But the time will come when the banks will want to use their excess reserves to support more profitable lending.

The Fed will then need to raise the interest rate that it pays on excess reserves to limit the extent to which the commercial banks can draw down those reserves to create additional lending and deposits.

The principle difference is that the Fed will now have to pay the interest on the nearly $2.5 trillion of excess reserves that it holds.

Previously, emphasis had been placed on boosting aggregate demand – primarily by lowering the cost of borrowing, but also by spurring wealth effects from appreciating financial assets. But now, by imposing penalties on excess reserves left on deposit with central banks, negative interest rates drive stimulus through the supply side of the credit equation – in effect, urging banks to make new loans regardless of the demand for such funds.

In the event of a reduction of the deposit facility rate, rules for the remuneration of deposits, balances and holdings of excess reserves under Guidelines ECB/2011/14, ECB/2012/27 and ECB/2014/9 need to be adjusted accordingly,

Some said , however , that it could lead to higher excess reserves and discourage use of the averaging provision .

The third article examines the Eurosystem 's experience with forecasting autonomous factors and excess reserves .

Inadditiontotheserequired reserves, credit institutions usually holdonly a small amount of voluntary excess reserveswith the Eurosystem.

These liquidity needs are determined by the sum of minimum reserve requirements, funds held in excess of these requirements on credit institutions’ current accounts with the Eurosystem (excess reserves) and autonomous factors.

For this purpose the Eurosystem has at its disposal anoperationalframeworkofmonetarypolicyinstruments and procedures.1 credit institutions’ current accounts with their NCBs (excess reserves) and autonomous factors. The latter area set of items on the Eurosystem’s balance sheet which have an impact on banks’ liquidity needs but are not under the direct control of the liquidity management of the ECB (e.g. banknotesincirculation , government deposits and net foreign assets).

Since reserves in excess of the required amount did not earn any interest from the Fed before 2008, commercial banks had an incentive to lend to households and businesses until the resulting growth of deposits used up all of those excess reserves.