Oct. 26, 2012 – Depository institutions will see some reduction in their Regulation D reserving requirements next year under adjustments announced Thursday by the Federal Reserve Board.
The Fed is increasing the amount of net transaction accounts subject to zero reserving from $11.5 million to $12.4 million for 2013. In addition, the 3 percent reserve requirement will apply to net transaction accounts above the first $12.4 million up to $79.5 million (up from $71 million). Net transaction accounts above the first $79.5 million will be subject to 10 percent reserving.
These annual adjustments, known as the low reserve tranche adjustment and the reserve requirement exemption amount adjustment, are based on growth in net transaction accounts and total reservable liabilities at all depository institutions between June 30, 2011, and June 30, 2012.
These changes take effect for institutions that report their deposits weekly with the 14-day reserve computation period that begins Nov. 27 and the corresponding 14-day reserve maintenance period that begins Dec. 27. For those reporting quarterly, the changes take effect with the seven-day reserve computation period that begins Dec. 18 and the corresponding seven-day reserve maintenance period that begins Jan. 17.
The Fed also revised the nonexempt deposit cut-off level and the reduced reporting limit used to determine an institution’s reporting frequency. For more, see the Fed notice.