To: All Member Banks and Others Concerned in the Third Federal Reserve District
Attention: Chief Operating Officers and Accounting Officers
Subject: REGULATION D - ANNUAL ADJUSTMENTS FOR THE CALCULATION OF RESERVE REQUIREMENTS
The Federal Reserve Board has announced the annual adjustments in the amount of net transaction accounts used in the calculation of reserve requirements and the cutoff levels used to determine the detail and frequency of deposit reporting.
For net transaction accounts in 2003, the first $6.0 million, up from $5.7 million in 2002, will be exempt from reserve requirements. A 3 percent reserve ratio will be assessed on net transaction accounts over $6.0 million to and including $42.1 million, up from $41.3 million in 2002. A 10 percent reserve ratio will be applied above $42.1 million.
Additionally, the Board increased the deposit cut-off level that is used with the exemption level to determine the frequency and detail of deposit reporting.
For depository institutions that report weekly, the low reserve tranche adjustment and the reservable liabilities exemption adjustment will apply to the reserve computation period that begins November 26, 2002, and the corresponding reserve maintenance period that begins December 26, 2002.
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 December 17, 2002, and the corresponding reserve maintenance period that begins January 16, 2003.
Effective Date: November 4, 2002.
Additional Information: The attached (96 KB, 5 pages) Federal Register Notice contains a description of the new boundaries for deposit reporting that will be effective September 2003. For further information, contact Heatherun Allison, Counsel, Legal Division (202/452-3565), or June O'Brien, Economist, Division of Monetary Affairs (202/452-3790), Board of Governors of the Federal Reserve System, 20th and C Streets, N.W., Washington, DC 20551.