In June 2010 the bank was taken over by Venezuela's banking regulator, after it had failed to meet minimum reserve requirements and investment quotas.
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Investors expect that Bank Indonesia will increase the minimum reserve requirement in an attempt to make the banking system stronger and limit loan growth.
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The Fed today left unchanged its requirement for the minimum reserves commercial banks must keep on deposit-- it's least used tool of monetary policy.
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The Philippine central bank is considering a reduction in the minimum reserve requirements for the country's banks, central bank Governor Gabriel Singson said Thursday.
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It also said it would strengthen the banking system by raising minimum reserve requirements by one percentage point to 20 percent early next year.
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The push for minimum reserves, which requires banks to lodge non-interest-bearing deposits at a central bank, is also coming from the German central bank.
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Bidding on the auction site eBay ended Friday after a month on the Internet auction site with no offers reaching the minimum reserve price.
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The amount of minimum reserves to be held by each commercial bank is determined in relation to its reserve base applying the required reserve ratio.
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Tietmeyer said the reduction in reserves lessens the competitive handicap German banks face and should make the concept of minimum reserves more palatable across Europe.
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The central bank said it would allow commercial banks to use up to 50 percent of their minimum reserves at the central bank every month.
