statutory reserves
[/stætʃuːtɔːri rɪˈzɜːrvz/]
nounpl: statutory reserves
reservas obrigatórias
1. Funds that financial institutions are legally required to hold and maintain, as mandated by banking regulations and central bank requirements, to ensure financial stability and depositor protection
The bank must maintain statutory reserves of 10% of its total deposits as required by the central bank.
O banco deve manter reservas obrigatórias de 10% do total de seus depósitos conforme exigido pelo banco central.
2. Capital reserves that corporations are required by law to set aside from profits, typically to protect creditors and ensure business continuity
The company allocated part of its profits to statutory reserves in compliance with corporate law.
A empresa alocou parte de seus lucros para reservas obrigatórias em conformidade com a lei corporativa.
Statutory reserves are a critical component of banking regulation in both Brazil and the United States. In Brazil, the Central Bank (Banco Central do Brasil) sets specific reserve requirements for commercial and savings banks. In the U.S., the Federal Reserve historically managed reserve requirements as a monetary policy tool. These reserves are essential for financial system stability and consumer protection, particularly following banking crises. The term is frequently encountered in financial compliance documents, banking regulations, and central bank communications.
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