reserve fund

[rɪˈzɜrvz fʌnd]
nounpl: reserve funds
fundo de reserva
1. Money set aside by a company, organization, or government for future use or emergencies
The company maintained a reserve fund to cover unexpected expenses.
A empresa mantinha um fundo de reserva para cobrir despesas inesperadas.
2. Financial resources kept in reserve as a contingency or buffer against financial difficulties
The bank's reserve fund was crucial during the economic crisis.
O fundo de reserva do banco foi crucial durante a crise econômica.
3. In investment, a portion of profits retained rather than distributed as dividends
The corporation allocated 10% of profits to its reserve fund.
A corporação alocou 10% dos lucros ao seu fundo de reserva.
In Brazil, reserve funds are regulated by law (Lei das Sociedades Anônimas). Companies are required to maintain a legal reserve fund (reserva legal) representing at least 5% of annual net profits. This concept is fundamental to Brazilian corporate governance and financial stability practices.
Synonyms / Sinônimos
contingency fundemergency fundsinking fundreserve accountfinancial cushion
Antonyms / Antônimos
expendituredistributiondividend payout

Regional Variations

General Brazilian Portuguese
fundo de reserva
Standard term used in financial and corporate contexts
Brazil - Accounting
reserva legal
Legal reserve fund required by Brazilian corporate law
Portugal
fundo de reserva
Same usage as Brazilian Portuguese; also 'reserva de capital'
Corporate Banking
provisão de reserva
More technical term used in banking regulations

Related Words

reservescapital reserveliquid reservestatutory reserveequityliquidity

Related Idioms & Phrases

dip into the reserve fund
build up a reserve fund
draw from the reserve fund
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