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Board of Governors of the Federal Reserve System
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Press Release
November 05, 2013

Federal Reserve Board announces annual
indexing of reserve requirement exemption
amount and of low reserve tranche for 2014
For immediate release
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The Federal Reserve Board on Tuesday announced the annual indexing
of the amounts used in determining reserve requirements of depository
institutions and deposit reporting panels effective in 2014.
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 pass-through 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 2014, the first $13.3 million, up from
$12.4 million in 2013, will be exempt from reserve requirements. A 3
percent reserve ratio will be assessed on net transaction accounts over
$13.3 million up to and including $89.0 million, up from $79.5 million in
2013. A 10 percent reserve ratio will be assessed on net transaction
accounts in excess of $89.0 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,

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2012 and June 30, 2013.
The new low reserve tranche and reserve requirement exemption
amount will apply to the 14-day reserve maintenance period that begins
January 23, 2014. For depository institutions that report deposit data
weekly, this maintenance period corresponds to the 14-day computation
period that begins Tuesday, December 24, 2013. For depository
institutions that report deposit data quarterly, this maintenance period
corresponds to the seven-day computation period that begins Tuesday,
December 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 2014.
Federal Register notice: HTML | PDF
For media inquiries, call 202-452-2955.

Last Update: November 05, 2013

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BOARD OF GOVERNORS of the FEDERAL RESERVE SYSTEM
20th Street and Constitution Avenue N.W., Washington, DC 20551