reserve bank: meaning, definition, pronunciation and examples
C2Formal, Financial, Economic, Academic, Journalistic
Quick answer
What does “reserve bank” mean?
A central banking institution responsible for regulating a nation's monetary policy, controlling its currency supply, interest rates, and managing its gold and foreign exchange reserves. Acts as a bank for the government and for commercial banks.
Audio
Pronunciation
Definition
Meaning and Definition
A central banking institution responsible for regulating a nation's monetary policy, controlling its currency supply, interest rates, and managing its gold and foreign exchange reserves. Acts as a bank for the government and for commercial banks.
As a proper noun (Reserve Bank), it specifically refers to the central bank in certain countries, such as the Reserve Bank of India, the Reserve Bank of Australia, or the Reserve Bank of New Zealand. In a broader economic context, it represents the primary authority for financial stability and lender of last resort in the banking system.
Dialectal Variation
British vs American Usage
Differences
The term 'Reserve Bank' is not used for the UK's central bank, which is the 'Bank of England'. In the US, the central bank is the 'Federal Reserve System' (the 'Fed'), not a 'Reserve Bank'. The phrase is therefore far more common in countries like Australia, New Zealand, India, and South Africa.
Connotations
In UK/US contexts, hearing 'Reserve Bank' would likely be interpreted as a reference to one of those Commonwealth/Antipodean central banks, not a domestic institution. It carries a formal, official, and specifically non-British/non-American connotation.
Frequency
Very low frequency in everyday UK/US English. High frequency in the financial news and discourse of countries whose central banks bear that name.
Grammar
How to Use “reserve bank” in a Sentence
The [Country] Reserve Bank + verb (e.g., cut, raised, maintained, stated)According to the Reserve BankA decision by the Reserve BankVocabulary
Collocations
Examples
Examples of “reserve bank” in a Sentence
verb
British English
- The authorities sought to reserve bank assets during the crisis. (Note: This is an extremely rare and non-standard collocation; 'reserve' and 'bank' function as separate words here.)
American English
- The plan was to reserve bank funds for emergency lending. (Same note as UK example.)
adverb
British English
- N/A (The term does not function as an adverb)
American English
- N/A (The term does not function as an adverb)
adjective
British English
- The reserve bank policy was widely debated. (Here 'reserve' modifies 'bank policy')
American English
- They discussed the reserve bank requirements. (Here 'reserve' modifies 'bank requirements')
Usage
Meaning in Context
Business
The Reserve Bank is expected to hold interest rates steady at its next meeting.
Academic
The study examines the independence of the Reserve Bank from political influence.
Everyday
I heard on the news the Reserve Bank is making loans more expensive.
Technical
The Reserve Bank intervened in the forex market to stabilise the currency, utilising its foreign exchange reserves.
Vocabulary
Synonyms of “reserve bank”
Vocabulary
Antonyms of “reserve bank”
Watch out
Common Mistakes When Using “reserve bank”
- Using 'Reserve Bank' to refer to the US Federal Reserve or the Bank of England. Using it without the definite article 'the' when referring to a specific one (e.g., 'Reserve Bank cut rates' vs. 'The Reserve Bank cut rates').
FAQ
Frequently Asked Questions
No. A Reserve Bank (or central bank) is a national institution that manages a country's currency, money supply, and interest rates. It does not offer savings accounts or mortgages to the general public.
Its primary functions are to ensure monetary stability (control inflation), issue currency, regulate commercial banks, and act as the government's banker and lender of last resort to the banking system.
The Federal Reserve (the 'Fed') is the central banking system of the United States. 'Reserve Bank' is the name used for the central banks of other specific nations like India, Australia, and New Zealand. Structurally, the Fed has 12 regional 'Reserve Banks', but this is a different usage within the US system.
The name originates from its historical role in holding the 'reserves' (gold and foreign currency) of the nation and the mandatory reserves that commercial banks are required to deposit with it.
A central banking institution responsible for regulating a nation's monetary policy, controlling its currency supply, interest rates, and managing its gold and foreign exchange reserves. Acts as a bank for the government and for commercial banks.
Reserve bank is usually formal, financial, economic, academic, journalistic in register.
Reserve bank: in British English it is pronounced /rɪˈzɜːv bæŋk/, and in American English it is pronounced /rɪˈzɜrv bæŋk/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “The Reserve Bank has spoken (figurative, meaning a definitive decision has been made by authority)”
Learning
Memory Aids
Mnemonic
Think of a bank that keeps a large RESERVE of the country's money and gold to manage the economy, not for personal savings.
Conceptual Metaphor
The nation's financial HELMSMAN or THERMOSTAT (steering the economy, regulating the financial temperature).
Practice
Quiz
In which of the following countries is 'Reserve Bank' the official name of the central bank?