FRB Announces Annual Indexing Used in Determining Reserve Requirements of Depository Institutions

The Board of Governors of the Federal Reserve System ("FRB") announced the annual indexing of the reserve requirement exemption amount and the low reserve tranche used to determine the reserve requirements of depository institutions.

The low reserve tranche adjustment and the reserve requirement exemption amount adjustment are based on growth in net transaction accounts and total reservable liabilities, respectively, at all depository institutions between June 30, 2013 and June 30, 2014. The new low reserve tranche and reserve requirement exemption amount will apply to the 14-day reserve maintenance period that begins on January 22, 2015. For depository institutions that report deposit data weekly, this maintenance period corresponds to the 14-day computation period that begins on Tuesday, December 23, 2014. For depository institutions that report deposit data quarterly, this maintenance period corresponds to the seven-day computation period that begins on Tuesday, December 16, 2014.

The FRB also announced changes in the nonexempt deposit cutoff level and the reduced reporting limit that are used to determine the frequency with which depository institutions must submit deposit reports.

The notice linked below contains a description of the new boundaries for deposit reporting that will be effective in 2015.