Legal Reserve

Legal Reserve

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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The year-over-year improvement included a one-time investment gain and a lower legal reserve.
ENPNewswire-August 19, 2019--AM Best Affirms Credit Ratings of Fidelity Life Association, a Legal Reserve Life Insurance Company
The initiative has also demanded the use of fiscal policy as a tool for reduction of economic turmoil that arise from aggregate demand volatility such as the open market operations, limitation of liquidity ratio, legal reserve ratio and the required ratio margin.
The issuance will increase the bank's capital to Dh3.63 billion from Dh3.168 billion, with another Dh538 million to be allocated to ADIB's legal reserve.
This may translate to higher past due ratios and inability to meet the legal reserve requirements,' it added.
The company clarified that the increase of the capital will be financed by the company's reserves; LE 500 million from its legal reserve which amounts to LE 693.1 million, and about LE 250 million from other reserves that are worth LE 927.8 million.
While Boston Scientific declined an interview with 60 Minutes, the company did say that "Any allegations continuing to question the integrity or legitimacy of our [plastic] resin are false and irresponsible." MESH ISSUES 'LIKELY OVERSTATED: In a research note to investors commenting on the 60 Minutes report, Stifel's Wise called the story "unsettling...but likely overstated." The analyst pointed out that the company has reached or is near settlement on 47,500 of the known 49,500 mesh legal claims, has a $1.5B legal reserve for the matter and said it expects the majority of the remaining mesh claims to be resolved in 2018.
The capital account liabilities amounted to QR142.7bn, of which QR57.48bn was legal reserve; QR37.93bn paid up capital; QR29.85bn retained earnings; and QR16.56bn risk reserve.
Without the effect of the legal reserve and the DTA remeasurement, net income would have been $2.9 million for the fourth quarter, a 4.8% decrease as compared to third quarter 2017 earnings, and $12.4 million for the year, a 52.9% increase as compared to the same period in 2016.
Lenders are supporting Banque du Liban's balance sheet through legal reserve requirements, the purchase of fixed income securities issued by the central bank and through voluntary deposits.
Excluding a $9 million legal reserve charge in the fiscal 2018 span and the aforementioned $9 million supply agreement termination fee, however, operating earnings climbed 16.8% to $132 million on an adjusted basis.
The mandatory or legal reserve ratio is one of the tools used by the CBE to influence the bank liquidity ratio, inflation rate, credit granting rates, and so on.

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