A bank reserve is a bank teller that comes in when the first team bank teller is tired or injured.
No? Fine.
A bank reserve is the portion of a bank's deposits that are set aside in a liquid account to ensure that the bank has enough cash on hand to fulfill a historically consistent level of withdrawal requests.
Bank reserves are a key driver in the liquidity of America and the world. When reserve rates are kept low, it means that banks can act aggressively to lend money. Interest rates usually decline in that environment. And the banks carry more risk of having problems, should there be any kind of banky panic and the unwashed masses decide to ask for cash to stuff under their Sertas.
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