A bank reserve whose information is disclosed in detail to the public or stakeholders. Disclosed reserves are created by a bank or financial institution by its own choice. These reserves are set up out of an entity’s retained earnings or other surpluses.
Disclosed reserves are part of tier-1 capital (tier-1 equity) and take the form of legal, general and other reserves created by appropriations of retained earnings, share premium, capital redemption reserves and other surplus (as presented on a bank’s balance sheet), but excluding revaluation reserves and certain prudential reserves.
