1. Already, the six-month loss wiped out 25 percent of Blue Cross'statutory reserves . 2. Another sterilisation measure would be to increase the statutory reserve requirements. 3. Thus, for example, statutory reserves may have to be adjusted abruptly up and down. 4. The difference, combined with income on and release of statutory reserves , represents future profit. 5. First let us analyse the term, statutory reserve requirements. 6. Statutory reserves are non-interest earning deposits of banks that are kept with the central bank.7. Statutory reserves are non-interest earning deposits of banks which are kept with the central bank.8. Apart from the Statutory Reserve Ratio, banks are also required to hold what is called liquid assets. 9. Statutory reserves cover mostly non-interest-earning deposits and deposit substitutes of banks, which are kept with the Central Bank.10. An example is the recent reduction in statutory reserve ratio from 13.5 per cent to 10 per cent.
