Meaning of “legal reserves” in the English Dictionary

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"legal reserves" in Business English

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legal reservesnoun [ plural ]


the smallest amount of money that financial organizations such as banks must keep to protect themselves against future financial losses, to pay legal fees, etc.:

The company will increase its legal reserves by a further $4.95bn to cover the cost of litigation surrounding its role in the dispute.

(Definition of “legal reserves” from the Cambridge Business English Dictionary © Cambridge University Press)