Statutory Reserves

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Dictionary Says

Definition of 'Statutory Reserves'

State regulated reserve requirements. Insurance companies must hold a portion of their assets as either cash or marketable investments. Statutory reserves are the amount of liquid assets that firms must hold in order to remain solvent and attain partial protection against a substantial investment loss. Holding reserves reduces the risk of insurance.
Investopedia Says

Investopedia explains 'Statutory Reserves'

Statutory reserves lead insurance companies to lose some potential profits as they are unable to invest these funds into mutual funds or other forms of high yield investments. However, holding reserves increases investor confidence that the company will be able to fulfill its commitment in a bear market. Some insurance companies hold additional capital, voluntary reserves.  
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'Statutory Reserves'

  • Get The Most Out Of Employee Stock Options

    http://www.investopedia.com/articles/optioninvestor/07/esoabout.asp
    ... options are given favorable tax treatment because they meet specific statutory rules
    described ... On this date, the employer no longer reserves the right for its ...

  • The Banking System: Commercial Banking - Key Ratios/Factors ...

    http://www.investopedia.com/university/banking-system/banking-system9.asp
    ... equity capital and disclosed reserves and divides it by the bank's risk-weighted
    assets, (assets whose value is reduced by certain statutory amounts, based ...

  • The Banking System: Commercial Banking - How Banks Are Regulated ...

    http://www.investopedia.com/university/banking-system/banking-system6.asp
    ... The FDIC categorizes banks by their capital ratio and reserves the right to force ...
    Banks also must abide by state laws limiting the statutory rates of interest ...

  • Understanding FHA Home Loans

    http://www.investopedia.com/articles/mortgages-real-estate/08/fha-home-loans.asp
    ... The statutory limit for the geographic area in which the home is located. ... a 45%
    back-end ratio takes special consideration and considerable cash reserves. ...

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