The Federal Reserve Board ("FRB") published in the Federal Register a final rule amending Regulation D ("Reserve Requirements of Depository Institutions"). The amendments reflect the annual indexing of the reserve requirement exemption amount and the low reserve tranche for 2019.
The Regulation D amendments set the amount of total reservable liabilities of each depository institution subject to a zero percent reserve requirement in 2019 at $16.3 million, which is a $0.3 million increase from its level in 2018 (the reserve requirement exemption amount). The Regulation D amendments also set the number of net transaction accounts at each depository institution that is subject to a three percent reserve requirement in 2019 at $124.2 million, which is a $1.9 million increase from 2018 (the low reserve tranche). The FRB also increased two other amounts: (i) the nonexempt deposit cutoff level and (ii) the reduced reporting limit.
The final rule will become effective on November 29, 2018, with the new low reserve tranche and reserve requirement exemption amounts applicable to the fourteen-day reserve maintenance period commencing on January 17, 2019.
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