How do transactions in T-Accounts affect a bank's reserves in terms of regulatory compliance?

T-Accounts are tools that banks use to keep track of their financial transactions, showing how money moves in and out of their accounts. When a bank receives deposits, it records these on the left side of the T-Account, increasing its reserves. This is important because banks are required by law to hold a certain percentage of these reserves to ensure they can meet customers' withdrawal demands and comply with regulations. For example, if a bank receives a $1,000 deposit and the reserve requirement is 10%, it must keep $100 in reserves while the remaining $900 can be used for lending. This system helps maintain the bank's stability and builds trust in the banking system as a whole.