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Effective Date: Reserve Requirements of Depository Institutions

AGENCY:

Board of Governors of the Federal Reserve System.

ACTION:

Final rule.

SUMMARY:

The Board is amending Regulation D, Reserve Requirements of Depository Institutions, to reflect the annual indexing of the reserve requirement exemption amount and the low reserve tranche for 2023. The annual indexation of these amounts is required notwithstanding the Board’s action in March 2020 of setting all reserve requirement ratios to zero. The Regulation D amendments set the reserve requirement exemption amount for 2023 at $36.1 million (increased from $32.4 million in 2022) and the amount of the low reserve tranche at $691.7 million (increased from $640.6 million in 2022). The adjustments to both of these amounts are derived using statutory formulas specified in the Federal Reserve Act (the ā€œActā€). The annual indexation of the reserve requirement exemption amount and low reserve tranche, though required by statute, will not affect depository institutions’ reserve requirements, which will remain zero.

DATES:

Effective date: January 3, 2023.

Compliance date: The new low reserve tranche and reserve requirement exemption amount will apply beginning January 1, 2023.

FOR FURTHER INFORMATION CONTACT:

Benjamin Snodgrass, Senior Counsel (202-263-4877), Kristen Payne, Lead Financial Institution and Policy Analyst (202-452-2872), or Francis A. Martinez, Lead Financial Institution and Policy Analyst (202-245-4217), Division of Monetary Affairs, Board of Governors of the Federal Reserve System, 20th and C Streets NW, Washington, DC 20551. For the hearing impaired and users of TTY-TRS, please call 711 from any telephone, anywhere in the United States.

  • January 3, 2023
  • Time: All Day
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