legal reserve system; reserve deposit requirement system
A US financial regulation term referring to the system requiring banks to hold a certain percentage of deposits as reserves. Primarily used in economic or legal contexts.
The US legal reserve system is one of the important tools of monetary policy.
Compound of 法定 (legal, statutory) + 準備 (reserve, preparation) + 制度 (system). The term is a direct translation of the English 'legal reserve system'.