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Legal Reserve

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Liquid assets that life insurance companies are required by statute to set aside and maintain to assure payment of claims and benefits. In banking, that percentage of bank deposits that must by law be maintained in cash or equally liquid assets to meet the demands of depositors.
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To achieve the targeted contribution this year, the CBC will have to rake in NT$265 billion of earnings, since it first has to appropriate minimum 20% of its earnings for legal reserves.
CBC to raise its contribution to national treasury by The Taiwan Economic News
2 billion yen due to a heavy loss on shareholdings and a greater profit transfer to legal reserves.
BOJ profit payment to gov't falls to 4-year low on stock market drop by Japan Weekly Monitor
The bank aims to boost its legal reserves -- part of its capital -- by some 60 billion yen (598 million dollars) a year by reducing the amount it pays to the state coffers, the newspaper reported.
Bank of Japan to bolster capital: report by AFP / AFP Asian Edition
 
 
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