Business Finance
Chapter 2 The Role of Financial Markets and Financial Intermediaries
2.3 Regulation of Financial Institutions
Regulation of Financial Institutions - Business Finance - ثاني ثانوي
PART 1
Chapter 1 An Introduction to Basic Finance
Chapter 2 The Role of Financial Markets and Financial Intermediaries
Chapter 3 Analysis of Financial Statements
PART 2
Chapter 4 An Introduction to Financial Markets
Chapter 5 Opportunity Costs and the Time Value of Money
Chapter 6 Risk and Its Measurements
Chapter 7 Stock and Bonds
Regulation of Financial Institutions
Commercial banks and other savings banks are subject
2.3a Reserves
Required reserves
The amount of the reserve requirement varies with the type of account.
Excess reserves
Correspondent bank
In addition to the required reserves, commercial banks also hold secondary
Secondary reserves
FI G U R E 2.11 The Saudi Central Bank’s official reserves assets in March 2022 (in million Riyal)
Funds kept in reserve against a commercial bank’s deposit liabilities are called required reserves.
A commercial bank is not allowed to use excess reserves to lend to borrowers.
In Saudi Arabia, both commercial and development banks are regulated by the:
