Reserve Maintenance Period

AAA

DEFINITION of 'Reserve Maintenance Period'

The time frame in which banks and other depository institutions must maintain a specified level of funds. It is a two-week period that begins on a Thursday and ends on a Wednesday. An assessment of overdrafts and corresponding charges also occurs during this time period.

INVESTOPEDIA EXPLAINS 'Reserve Maintenance Period'

As the specified amount of reserve funds changes regularly, it is important for the institution to have an account at a reserve bank or a subsequent pass-through arrangement, in order to ensure that the appropriate funds are available. If niether of the two external funds are in place, and the institution does not have enough reserves to meet the requirement, they will be subject to a charge.

RELATED TERMS
  1. Federal Reserve Bank

    The central bank of the United States and the most powerful financial ...
  2. Bank Run

    A situation that occurs when a large number of bank or other ...
  3. Reserve Requirements

    Requirements regarding the amount of funds that banks must hold ...
  4. Reserve Ratio

    The portion (expressed as a percent) of depositors' balances ...
  5. Fractional Reserve Banking

    A banking system in which only a fraction of bank deposits are ...
  6. Average Revenue Per User (ARPU)

    A measure of how much income a business generates, given the ...
Related Articles
  1. Texas Ratio Rounds Up Bank Failures
    Personal Finance

    Texas Ratio Rounds Up Bank Failures

  2. Analyzing A Bank's Financial Statements
    Fundamental Analysis

    Analyzing A Bank's Financial Statements

  3. How Much Influence Does The Fed Have?
    Economics

    How Much Influence Does The Fed Have?

  4. How The Federal Reserve Was Formed
    Personal Finance

    How The Federal Reserve Was Formed

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center