<p>Yes, the Bank of England is the regulatory authority in the UK which sets reserve requirements for commercial banks.</p>

<p>A short overview of the Bank of England's history regarding money supply and reserve requirements can be found here:
<a href="http://qed.econ.queensu.ca/noftp/faculty/bergin/econ320/BOE.pdf" rel="nofollow noreferrer">http://qed.econ.queensu.ca/noftp/faculty/bergin/econ320/BOE.pdf</a></p>

<p>More information on how commercial banks hold reserves can be found in the famous Red Book:
<a href="https://www.bankofengland.co.uk/-/media/boe/files/sterling-monetary-framework/annual-report-2017-18" rel="nofollow noreferrer">https://www.bankofengland.co.uk/-/media/boe/files/sterling-monetary-framework/annual-report-2017-18</a></p>

<p>Although the UK does not at present have a minimum reserve requirement, commercial banks nonetheless must be well capitalised in accordance with BoE regulation on the counter-cyclical capital buffer. (I mention this because one reason central banks have minimum reserve requirements is also in relation to capital requirements/buffering, as well as traditional liquidity and rate setting reasons.)</p>

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2019-05-19T14:37:36.060Z
2019-05-19T14:37:36.060Z
eBopBob
<p>I’ve been studying about monetary policy comittee.</p>

CC BY-SA 4.0
2019-05-19T14:02:07.047Z
Probably, but they're zero right now.
fantastic peace and prosperity
<macroeconomics><monetary-policy><central-banking>
Does the Bank of England have the ability to set reserve requirements for commercial banks?
user28603
# Does the Bank of England have the ability to set reserve requirements for commercial banks?

(Asked by: username_0 on 2019-05-19)

I’ve been studying about monetary policy comittee.

**Tags:** macroeconomics, monetary-policy, central-banking

> **Comments:**
> **username_1**: Probably, but they're zero right now.  

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## 1 answers

### Answer by username_2 on 2019-05-19. Score: 1

Yes, the Bank of England is the regulatory authority in the UK which sets reserve requirements for commercial banks.

A short overview of the Bank of England's history regarding money supply and reserve requirements can be found here:
<http://qed.econ.queensu.ca/noftp/faculty/bergin/econ320/BOE.pdf>

More information on how commercial banks hold reserves can be found in the famous Red Book:
<https://www.bankofengland.co.uk/-/media/boe/files/sterling-monetary-framework/annual-report-2017-18>

Although the UK does not at present have a minimum reserve requirement, commercial banks nonetheless must be well capitalised in accordance with BoE regulation on the counter-cyclical capital buffer. (I mention this because one reason central banks have minimum reserve requirements is also in relation to capital requirements/buffering, as well as traditional liquidity and rate setting reasons.)


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