Deposit reserve is a monetary fund prepared by financial enterprises to meet customers' withdrawal of deposits and fund settlement. Internationally, deposit reserve mainly includes three parts: one is cash on hand; Second, deposits deposited in the central bank according to a certain proportion of total deposits or total liabilities are called statutory reserves; Third, the part of the central bank deposit that exceeds the statutory reserve is called excess reserve. In this law, the scope of deposit reserve is limited to statutory reserve.
The deposit reserve system has several functions in financial macro-control: first, it regulates the scale of credit; The second is to enhance the macro-control ability of central bank credit funds. For commercial banks themselves, the deposit reserve system also plays a certain role in enhancing the ability of commercial banks to pay deposits and repay funds.
It is manifested in three aspects: (1) restricts the expansion ability of derivative deposits of commercial banks, reduces the debt burden and payment pressure of commercial banks, and objectively enhances the payment and capital settlement ability of commercial banks. (2) The central bank's centralized deposit reserve plays a final role in supporting and guaranteeing the payment and stability of commercial banks. (3) When the deposits of commercial banks decline, the central bank will reduce the deposit reserve according to the prescribed proportion, which can increase the capital position of commercial banks.
From the perspective of protecting depositors, this article also clearly stipulates: "A commercial bank shall deposit a deposit reserve with the People's Bank of China in accordance with the regulations of the People's Bank of China.
"Since commercial banks absorb deposits, they should prepare some cash for depositors to withdraw at any time, not all loans, so as to effectively prevent commercial banks from being unable to cope with the crisis of depositors' cash withdrawal due to excessive loans, limit the loan scale of commercial banks, and ensure that they have sufficient cash payment capacity in an emergency. Therefore, the deposit reserve system not only puts the interests of depositors under legal protection, but also contributes to the operational safety of commercial banks.
According to the Law of the People's Bank of China, the People's Bank of China formulates monetary policy and has the right to require financial institutions to deposit reserves in a prescribed proportion.