reserves

1. The funds that are earmarked by a firm from its retained earnings for future use, such as for the payment of likely-to-be-incurred bad debts. The existence of such a reserve informs readers of the firm's financial statements that at least a part of the retained earnings will not be available to the stockholders. See also allowance for doubtful accounts, reserve for contingencies.
2. In banking, currency held in vaults plus deposits at Federal Reserve banks. Also called legal reserves.
3. Gold and foreign currency held by a central bank.