§ Mr. AllenTo ask the Chancellor of the Exchequer if he will list the European countries which operate minimum reserve requirements; and what they are in each case.
§ Mr. RyderMinimum reserve requirements in the main European countries are as follows:
Austria:
Between 9 per cent. and 4½ per cent. of sight, time a nd savings deposits in Schillings, certain securities issues, net foreign exchange position.Belgium:
Not used currently.Denmark:
No compulsory reserve requirements.Federal Republic of Germany:
Between 6.6 per cent. and 12.1 per cent. on residents sight deposits. 12.1 per cent. on non-resident sight deposits. 4.95 per cent. on time deposits and 4.15 per cent. on savings deposits.France:
5.5 per cent. on sight deposits, 3 per cent. on time deposits.Greece:
A primary reserve requirement of 8 per cent. on drachma and foreign currency deposits.Ireland:
A liquidity ratio of 10 per cent. of banks' current and deposit account liabilities to non-bank residents plus net interbank funding on the domestic market plus net external liabilities.Italy:
25 per cent. of the monthly increase in deposits in excess of the growth of capital and reserves, up to a maximum of 22.5 per cent. of the level.Luxembourg:
Not used.Netherlands:
The money market cash reserve requirement varies with conditions in the money market. Until 2 May it is between 1¾ per cent. and 3½ per cent. of guilder and foreign currency short—term deposit liabilities plus 25 per cent. of all other liabilities.Portugal:
17 per cent. of eligible liabilities (private sight, notice and time deposits in escudos and foreign currency deposits held by residents or emigrant workers).Spain:
5 per cent. of sight, time and savings deposits, plus securitised bank liabilities held by domestic non-banks in Peseta.Switzerland:
Not used.United Kingdom:
Not used for purposes of monetary control.