Business Glossary

1. funds that a bank can put to use in meeting loan demand or hold in its investment portfolio, depending on market competition, demand for credit, interest rates, and other factors. The total is equal to cash on hand ( vault cash ) and checks payable by other banks (cash due from banks on the balance sheet) plus aggregate loans and investments.
2. available balance in a depositor's account, which is the amount that can be invested readily, disbursed to pay creditors, or transferred to another account.

*Under the Expedited Funds Availability Act, a check is a local check if deposited in the same Federal Reserve check processing region as the paying bank.