How to Calculate a Cash Reserve Ratio
- 1). Request a copy of the annual report for the bank you would like to compute the cash reserve ratio for. You may also be able to download a copy from the bank's website.
- 2). Go to the income statement of the balance sheet. The first line item on the balance sheet is usually cash. As an example, suppose the cash line item reads $10 million.
- 3). Scroll down to the liabilities section of the balance sheet. Look for the value of deposits. For the example, suppose the total value of deposits for the bank is $100 million.
- 4). Divide cash by the deposits for the cash reserve ratio (CRR). In the example, $10 million / $100 million is 0.1, or 10 percent.
