WASHINGTON (MNI) – The Federal Reserve Thursday announced the
annual indexing of reserve requirements, raising the exemption amount
for transaction accounts for 2013. The text of the statement follows:
The Federal Reserve Board on Thursday announced the annual indexing
of the reserve requirement exemption amount and of the low reserve
tranche for 2013. These amounts are used in the calculation of reserve
requirements of depository institutions. The Board also announced the
annual indexing of the nonexempt deposit cutoff level and the reduced
reporting limit that will be used to determine deposit reporting panels
effective 2013.
All depository institutions must hold a percentage of certain types
of deposits as reserves in the form of vault cash, as a deposit in a
Federal Reserve Bank, or as a deposit in a passthrough account at a
correspondent institution. Reserve requirements currently are assessed
on the depository institution’s net transaction accounts (mostly
checking accounts). Depository institutions must also regularly submit
reports of their deposits and other reservable liabilities.
For net transaction accounts in 2013, the first $12.4 million, up
from $11.5 million in 2012, will be exempt from reserve requirements. A
3 percent reserve ratio will be assessed on net transaction accounts
over $12.4 million up to and including $79.5 million, up from $71.0
million in 2012. A 10 percent reserve ratio will be assessed on net
transaction accounts in excess of $79.5 million.
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, respectively, at all depository institutions between June
30, 2011 and
For depository institutions that report weekly, the low reserve
tranche adjustment and the reserve requirement exemption amount
adjustment will apply to the 14-day reserve computation period that
begins Tuesday, November 27, 2012, and the corresponding 14-day reserve
maintenance period that begins Thursday, December 27, 2012.
For depository institutions that report quarterly, the low reserve
tranche adjustment and the reserve requirement exemption amount
adjustment will apply to the seven-day reserve computation period that
begins Tuesday, December 18, 2012, and the corresponding seven-day
reserve maintenance period that begins Thursday, January 17, 2013.
The Board also announced changes in two other amounts, 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 attached Federal Register notice contains a
description of the new boundaries for deposit reporting that will be
effective in 2013.
** MNI Washington Bureau: 202-371-2121 **
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