November 12, 2015

Reg D low-reserve tranche rising to $110.1 million

The top of the low-reserve tranche under Regulation D – the amount of net transaction accounts subject to 3 percent reserving – will rise from $103.6 million to $110.1 million for 2016, the Federal Reserve said Thursday.

The Fed, through a final rule, is also raising from $14.5 million to $15.2 million the amount of net transaction accounts that will be exempt from Reg D reserving in the coming year. Net transaction accounts over the first $15.2 million and up to $110.1 million, then, will be subject to a 3 percent reserve ratio. Above that tranche, the reserve ratio will be 10 percent.

These changes are based on growth in net transaction accounts and total reservable liabilities at all depository institutions from June 30, 2014, to June 30, 2015.

The nonexempt cut-off level and reduced reporting limits are also revised; the final rule will be published soon in the Federal Register.