The Federal Reserve Board has announced the annual indexing of the reserve requirement exemption amount and of the low reserve tranche for 2009. 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 2009.
For net transaction accounts in 2009, the first $10.3 million, up from $9.3 million in 2008, will be exempt from reserve requirements. A 3 percent reserve ratio will be assessed on net transaction accounts over $10.3 million up to and including $44.4 million, up from $43.9 million in 2008. A 10 percent reserve ratio will be assessed on net transaction accounts in excess of $44.4 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, 2007 and June 30, 2008.
See the press release for full details.
