FR 2930

Allocation of Low Reserve Tranche and Reservable Liabilities Exemption

Description: This report provides information on the allocation of the low reserve tranche and the reservable liabilities exemption for depository institutions with offices in more than one state or Federal Reserve District or for those operating under operational convenience.

OMB: 7100-0087

Purpose: For calculation of required reserves on net transaction accounts, there is a low reserve tranche within which deposits are reserved at a lower reserve requirement ratio than are amounts in excess of the low reserve tranche. Within the low reserve tranche, deposits under the reservable liabilities exemption amount are reserved at zero. Since all U.S. offices of the same parent depository institution are allowed only one low reserve tranche and one reservable liabilities exemption, this report provides the basis for their allocation across separate reporting offices.

Background: This reporting requirement is a product of the Monetary Control Act of 1980 (the Act). The Act revised reserve requirements and resulted in a complete revision of the deposits reporting system and Regulation D. The Act also initially established a low reserve tranche made up of the first $25 million in net transaction accounts. The low reserve tranche is now adjusted annually. The Garn-St Germain Depository Institutions Act of 1982 established the reservable liabilities exemption. As a result, the reporting form was expanded to collect information on the reservable liabilities exemption. At the same time a separate reporting form, the FR 2930a, was adopted for depository institutions other than U.S. branches and agencies of foreign banks and Edge and agreement corporations. In 2006, the FR 2930 and FR 2930a were combined into one reporting form to be foreign and domestic institutions.

Respondent Panel: The panel consists of a single designated office from each family of U.S. branches and agencies of a foreign bank, a single designated office from each Edge and agreement corporation that has offices located in more than one state or Federal Reserve District, and depository institutions operating under operational convenience that file more than one FR 2900 report. Participation is required.

Frequency: The FR 2930 data is collected toward the end of each calendar year (when the low reserve tranche and reservable liabilities exemption are adjusted), or upon the establishment of an office outside the home state or Federal Reserve District. The data are required at least one week before the beginning of the reserve computation period (a 14 day period beginning on Tuesday and ending on Monday of the second week following) in which the revised allocations are to be effective.

Public Release: None.

Last Update: November 8, 2017