Reserves
In banking, the deposits a commercial bank holds at the central bank. Required reserves were historically a regulatory floor (set to zero in the US in March 2020); excess reserves are anything held above the minimum, on which the Fed pays IORB. Reserves are the most-liquid asset a bank can own and the settlement medium for interbank payments. In the post-2020 ample-reserves regime, reserves are abundant and the Fed influences rates through administered policy rates rather than by adjusting reserve quantity.
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