Board Announces Reserve Requirement Thresholds for 2013
The Federal Reserve Board on October 25 issued the annual reserve requirement thresholds for depository institutions in 2013. Banks are required to set aside a specified portion of net transaction accounts—mostly checking accounts—as reserves.
In 2013 the first $12.4 million in net transaction accounts will be exempt from reserve requirements. The low reserve tranche, which includes net transaction accounts over $12.4 million and up to $79.5 million, will be subject to a 3 percent reserve ratio. Amounts in excess of $79.5 million will be assessed a 10 percent reserve ratio.
The Board recalculated the low reserve tranche and the reserve requirement exemption based on the growth in net transaction accounts and total reservable liabilities in the year ending June 30, 2012.
Banks must also submit reports of their deposits and other reservable liabilities. The Board announced changes to two amounts that are used to determine how often banks must submit the reports. Changes to those amounts—the nonexempt deposit cutoff level and the reduced reporting limit— are detailed in the Federal Reserve notice.
October 31, 2012