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Accounting
Banking

Statutory Reserve

A type of reserve that is maintained by a bank or financial institution as a minimum amount to meet the...

Reserve

An amount that is taken out of an Islamic bank’s income (mudaraba income, investment account holders’ income, etc) as a…

Provision

A charge that an Islamic bank makes against earnings. In other words, it is a contra-asset that is created by…

CRR

It stands for capital redemption reserve; a reserve that is set aside for buy-back schemes and redemptions of preference capital...

Capital Redemption Reserve

A reserve that is set aside for buy-back schemes and redemptions of preference capital (preferred shares capital). It is a...

Excess Reserve

A reserve that a bank creates (out of its monetary profits) and holds in excess of required reserves, minus monetary...

Free Reserve

A reserve that a bank creates (out of its monetary profits) and holds in excess of required reserves, minus monetary...

Free Reserve

A category of reserves that are available for distribution as dividends (as of the latest audited balance sheet of an...

Dividend Equalization Account

A reserve (type of a specific reserve) that is created specifically for the purpose of ensuring  stability of an entity's...

DER

It stands for dividend equalization reserve; a reserve (type of a specific reserve) that is created specifically for the purpose...