For immediate release

The Federal Reserve Board today announced a decrease from $46.5 million to $44.3 million in the net transaction accounts to which a 3 percent reserve requirement will apply in 2000. This adjustment is known as the low reserve tranche adjustment. The Board also changed from $4.9 million to $5.0 million the amount of reservable liabilities of each depository institution that is subject to a reserve requirement of zero percent. Additionally, the Board increased the deposit cutoff levels that are used in conjunction with the exemption level to determine the frequency and detail of deposit reporting required for each institution from $81.9 million to $84.5 million for nonexempt depository institutions and from $52.6 million to $54.3 million for exempt depository institutions. For depository institutions that report weekly, the low reserve tranche adjustment and reservable liabilities exemption adjustment will apply to the reserve computation period that begins Tuesday, November 30, 1999, and the corresponding reserve maintenance period that begins Thursday, December 30, 1999. For institutions that report quarterly, the low reserve tranche adjustment and the reservable liabilities exemption adjustment will apply to the reserve computation period that begins Tuesday, December 21, 1999, and the corresponding reserve maintenance period that begins Thursday, January 20, 2000. In addition, normal shift procedures will resume in September 2000 for nonexempt institutions that would otherwise have shifted from quarterly to weekly reporting, and for exempt institutions that would otherwise have shifted from annual to quarterly reporting, in September 1999 but for Y2K adjustments to the category shift procedures. The Board's notice is attached.

Final rule (20 KB PDF)

1999 Banking and consumer regulatory policy