Reserve Percentage Calculator

Formula

The formula to calculate the Reserve Percentage is:

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

Where:

$\text{RSR}$ is the Reserve Percentage (%)
$\text{TR}$ is the Total Amount in Reserves ($)
$\text{TB}$ is the Total Amount Owned by the Bank ($)

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:

Total Amount in Reserves (TR): $500,000
Total Amount Owned by the Bank (TB): $2,000,000

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%.