Quote:
Originally Posted by crystal
@ renny
plz correct dat "SLR is ratio of liquid assets that banks are required to hold by themselves or with central bank"
banks dnt keep liquid assets meant fr SLR at cental bank... instead they r required to keep them wid themselves as correctly mentiond by sami691 dat "It is the amount of liquid assets, such as cash, precious metals or other approved securities, that a financial institution must maintain as reserves other than the Cash with the Central Bank."
da general practice fr banks is to keep govt. securities to fulfill SLR since they r risk free assets.... SLR is also cald Statutory liquidity requirement while some may refer to it as statutory liquidity ratio
|
Cash with central bank here means MCR, which is a regulatory obligation.
SLR is also regulatory , but banks hav option to either hold by themselves or keep with central bank. it can be in form of cash or liquid securities.
Very similar to CRR but CRR can only hold pure cash.
Quote:
Originally Posted by crystal
@ sami691
yup dats wat i knew n told them while they were listening to me intently 
bt da thng is actual figures dnt come to our mind so quickly  |
same with me.
they asked me microsoft recent activity. I knew and told about skype acquisition. but couldnt tell the bid amount.