Reserve Ratio Calculator

Enter the total reserve maintained with the central bank and the total deposit liabilities into the calculator to determine the reserve ratio.

Reserve Ratio Formula

The following equation is used to calculate a reserve ratio.

RR = RMCB / DL

  • Where RR is the reserve ratio
  • RMCB is the reserve maintained by the central bank
  • DL is the deposit liabilities

FAQ

What is a reserve ratio?

A reserve ratio is a financial term used to describe the ratio of cash held as reserve to the total liabilities of the central bank of any given country.

What is a good reserve ratio?

What is considered acceptable as a reserve ratio will depend on the global standing of the country and the trust in that country to pay it’s debts. The greater the trust with the global economy the lower the ratio needs to be.


reserve ratio formula

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