|For immediate release|
The Federal Reserve Board on Thursday announced the annual adjustments in the amount of net transaction accounts used in the calculation of reserve requirements and the cutoff level used to determine the detail and frequency of deposit reporting.
All depository institutions must retain a percentage of certain types of deposits in the form of vault cash, or as a deposit in a Federal Reserve Bank, or a pass-through account at a correspondent institution. Reserve requirements currently are assessed on the depository institution's net transaction accounts (mostly checking accounts).
For net transaction accounts in 2003, the first $6.0 million, up from $5.7 million in 2002, will be exempt from reserve requirements. A 3 percent reserve ratio will be assessed on net transaction accounts over $6.0 million to and including $42.1 million, up from $41.3 million in 2002. A 10 percent reserve ratio will be applied above $42.1 million.
These annual adjustments, known as the low reserve tranche adjustment and the reservable liabilities exemption adjustment, are based on growth in net transaction accounts and total reservable liabilities, respectively, at all depository institutions between June 30, 2001 and June 30, 2002.
For depository institutions that report weekly, the low reserve tranche adjustment and the reservable liabilities exemption adjustment will apply to the reserve computation period that begins November 26, 2002 and the corresponding reserve maintenance period that begins December 26, 2002.
For institutions that report quarterly, the low reserve tranche adjustment and the reservable liabilities exemption adjustment will apply to the reserve computation period that begins December 17, 2002, and the corresponding reserve maintenance period that begins January 16, 2003.
Additionally, the Board increased the deposit cutoff level that is used with the exemption level to determine the frequency and detail of deposit reporting. The attached Federal Register notice contains a description of the new boundaries for deposit reporting that will be effective September 2003.
The Board's notice is attached.
2002 Banking and consumer regulatory policy