This paper presents findings on the impact of revisions to a unique bank regulation yet studied.An old hypothesis in banking literature is tested by examining share price reactions to Water Bottles two-way changes to statutory reserve ratio (SRR) requirement over a recent eight-year period.Announcements of these regulatory changes appear to lead to statistically and economically significant abnormal returns.These new findings suggest that a decrease in statutory reserve has a risk-reducing effect on financial institutions.
Thus, this study provides a test of the prediction of theory that SRR is a powerful macroeconomics policy tool to revive an economy Essential Oil Roll-On in the aftermath of a financial crisis.