On Dec. 8, Fed revised reserve requirements of depository institutions.
Fed amended Regulation D reserve requirements, (12 CFR 204), to reflect the annual indexing of reserve requirement exemption amount and low reserve tranche for 2022.
Annual Indexation
Required despite Fed action in Mar. 2020 setting all reserve requirement ratios to zero.
Reserve requirement exemption amount for 2022 set at $32.4mn (up from $21.1mn in 2021) and amount of low reserve tranche at $640.6mn (up from $182.9mn in 2021).
Adjustments to both amounts derived using statutory formulas in Federal Reserve Act.
Increases in exemption amount and low reserve tranche larger than in previous years.
Reflect one-time effects of Reg D changes that eliminated 6 convenient transfer limit from definition of savings deposit, recognized savings deposits as transaction account.
Annual indexation of reserve requirement exemption amount and low reserve tranche, not affect depository institutions' reserve requirements, which will remain zero.
Effectiveness
Amendments to annual indexing of reserve requirements effective on Jan. 7, 2022.
Nov. 2022 Fed Annual Indexing
On Nov. 29, 2022, Fed announced annual indexing of reserve requirement exemption amount and low reserve tranche for 2023, reserve requirement ratios remain zero.
Reserve requirement exemption amount for 2023 set at $36.1mn (up from $32.4mn in 2022) and amount of low reserve tranche at $691.7mn (up from $640.6mn in 2022).
Amendments to Regulation D reflecting annual indexing to apply starting Jan. 1, 2023.
Dec. 2022 Fed Reg Final Rule
On Dec. 1, 2022, Fed published final rule for Reg D, to reflect annual indexing of reserve requirement exemption amount, 2023 low reserve tranche, in federal register.
Effective date of final rule is Jan. 3, 2023; compliance date for new low reserve tranche and reserve requirement exemption amount will apply beginning Jan. 1, 2023.
Nov. 2023 Fed Reg Final Rule
On Nov. 29, 2023, Fed amended Regulation D to reflect the annual indexing of the reserve requirement exemption amount and the low reserve tranche for 2024.
Requirement exemption amount to remain $36.1mn for 2024 (unchanged) from 2023.
Effective Dec. 29, 2023, Fed amended Regulation D to set the amount of the low reserve tranche at $644mn, which is a decrease from $691.7mn in 2023.
Annual indexation of reserve requirement exemption amount, low reserve tranche is required by statute, will not affect institutions' reserve requirements, remaining zero.
Nov. 2024 Fed Annual Indexing
On Nov. 20, 2024, Fed amended Regulation D to reflect the annual indexing of the reserve requirement exemption amount and the low reserve tranche for 2025.
Set reserve requirement exemption amount $37.8mn (increased from $36.1mn 2024).
Amount of low reserve tranche set at $645.8mn (increased from $644.0mn in 2024).
