Non-Borrowed Reserves

AAA

DEFINITION of 'Non-Borrowed Reserves'

A measure of the reserves in the banking system. Non-borrowed reserves represent the numerical difference between total reserves minus funds that have been borrowed from the Fed discount window.

The first element of this equation consists of the total reserves held at deposit at the Fed by member banks plus the composite cash in their vaults. The second element is money borrowed by banks through the Fed discount window.

INVESTOPEDIA EXPLAINS 'Non-Borrowed Reserves'

The total amount of non-borrowed reserves is computed each week by the Federal Reserve Bank. The level of reserves is sometimes targeted by adjusting the Fed funds rate to implement monetary policies. Although the arithmetic computation of non-borrowed reserves is quite simple, the underlying factors that sometimes affect this number can be quite complex.

RELATED TERMS
  1. Lagged Reserves

    A method of bank reserve calculation whereby the financial institution ...
  2. Free Reserves

    A measurement of a bank's reserves that is equal to the difference ...
  3. Reserve Fund

    An account set aside by an individual or business to meet any ...
  4. Capital Reserve

    A type of account on a municipality's or company's balance sheet ...
  5. Excess Reserves

    Capital reserves held by a bank or financial institution in excess ...
  6. Treasury Direct

    The online market where investors can purchase federal government ...
Related Articles
  1. What are the generally accepted accounting ...
    Investing

    What are the generally accepted accounting ...

  2. Oil And Gas Industry Primer
    Active Trading

    Oil And Gas Industry Primer

  3. Banquo’s Grain And U.S. Interest Rates
    Economics

    Banquo’s Grain And U.S. Interest Rates

  4. Successful Ways That Governments Reduce ...
    Economics

    Successful Ways That Governments Reduce ...

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center