What does reserve mean in this sentence and in general financial term?

"The reserves needed to assure that depositors can withdraw their deposits on demand will be quite small in normal times".





Thanks!|||This is money kept in a fund to cover expenses/withdrawals. This sentence is basically saying that there will always be a small, but sufficent, amount of money at hand to cover depositors' withdrawals. This money is set aside and held for this purpose.|||It means the amount of money the bank needs on hand so that it can readily provide depositors with cash when those customers want to withdraw their money. This could be actual cash that the bank has in its vaults, or it could be money that can acquired at very short notice. Banking laws in most developed countries (maybe all?) require that banks maintain a specified level of reserves.|||The limited amount required...........or standard required reserves.|||cash and other capital that are on hand so customers and the bank can do business without problems and the bank can stay liquefied