excess cash reserves
[ɪkˈses kæʃ rɪˈzɜrvz]
noun
reservas de caixa em excesso
1. The amount of cash or liquid assets held by a company, bank, or organization that exceeds the minimum required for operational needs and regulatory compliance
The bank maintained excess cash reserves to cushion against economic downturns.
O banco mantinha reservas de caixa em excesso para se proteger contra desacelerações econômicas.
2. Surplus liquid funds that are not immediately needed for operational expenses, debt servicing, or regulatory capital requirements
The company's excess cash reserves allowed it to invest in new projects without seeking external financing.
As reservas de caixa em excesso da empresa permitiram que investisse em novos projetos sem buscar financiamento externo.
In Brazilian corporate finance, maintaining excess cash reserves is viewed strategically for both operational flexibility and investor confidence. During economic volatility, companies that maintain healthy excess reserves are often viewed more favorably by stakeholders. In the U.S., excess cash reserves are scrutinized by investors and regulators, particularly in the banking sector, as excessive reserves may indicate underutilization of capital or lack of growth strategy.
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