The Bundesbank believes that minimumreserve requirements give a central bank tighter control over bank lending and help to smooth out money-market interest rates.
The Center believes that the United States (which today fields 18 active and 10 reserve Army divisions) requires a minimum of 15 active and 9 reserve divisions.
The Center believes that the United States must retain a minimum of 22 active and 14 reserve air wings, a reduction of only one wing from the current total of 37 wings when and if the completion and ratification of a Conventional Forces in Europe agreement necessitates its removal from Europe.
Regulators say holding back a small amount of customer cash would decrease the amount of capital that firms would have to hold in reserve and compare the idea to a minimum account balance required by banks.