Reserve Percentage Calculator

Calculate Reserve Percentage



Formula

The formula to calculate the Reserve Percentage is:

\[ \text{RSR} = \frac{\text{TR}}{\text{TB}} \times 100 \]

Where:

What is the Reserve Percentage?

The Reserve Percentage (RSR) is a measure of the total amount in reserves compared to the total amount owned by the bank. It is calculated by dividing the total amount in reserves by the total amount owned by the bank, then multiplying by 100. This percentage helps in assessing the financial stability and liquidity of a bank.

Example Calculation

Let's consider an example:

Using the formula to calculate the Reserve Percentage:

\[ \text{RSR} = \frac{500,000}{2,000,000} \times 100 = 25\% \]

This means that the Reserve Percentage (RSR) is 25%.