Reserve Ratio Calculator
The Reserve Ratio Calculator shows the share of deposits a bank holds in reserve. Enter reserves and total deposits to get the reserve ratio and the amount available to lend.
Formula
Reserve Ratio = Reserves ÷ Total Deposits × 100
- Central banks set a minimum reserve ratio to control money supply.
- Funds above the requirement can be lent out.
Rs 100,000 reserves, Rs 1,000,000 deposits
Inputs
- Reserves Held: 100000 Rs
- Total Deposits: 1000000 Rs
100,000 ÷ 1,000,000 × 100 = 10% reserve ratio, leaving Rs 900,000 to lend.
Frequently asked questions
Who sets the reserve ratio?
The central bank (in Pakistan, the State Bank) sets the minimum reserve requirement for commercial banks.