For immediate release

The Federal Reserve Board today requested public comment on a proposal to move from a system of contemporaneous reserve requirements to one where reserves are maintained on a lagged basis. The switch would make it easier for depositories to calculate their required reserves and would increase the accuracy of information needed by the Open Market Trading Desk to carry out its operations. Comment is requested by January 12, 1998. Under the proposed lagged system, the reserve maintenance period for weekly reporting institutions would begin 30 days after the beginning of the two-week reserve computation period. Under the current system, the reserve maintenance period begins only two days after the beginning of the computation period. The Board's notice is attached.

Summary only | Summary and proposed rule (18 KB PDF)

1997 Banking and consumer regulatory policy