FINAL RULE--AMENDMENT TO REGULATION D.
The Board of Governors is amending 12 C.F.R. Part 204, its
Regulation D (Reserve Requirements of Depository Institutions), to
reflect the annual indexing of the low reserve tranche and the reserve
requirement exemption for 2000, and announces the annual indexing of the
deposit reporting cutoff levels that will be effective beginning in
September 2000. The amendments decrease the amount of transaction
accounts subject to a reserve requirement ratio of three percent in
2000, as required by section 19(b)(2)(C) of the Federal Reserve Act,
from $46.5 million to $44.3 million of net transaction accounts. This
adjustment is known as the low reserve tranche adjustment. The Board is
increasing 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 in 2000. This action is required by section
19(b)(11)(B) of the Federal Reserve Act, and the adjustment is known as
the reservable liabilities exemption adjustment. The Board is also
increasing the deposit cutoff levels that are used in conjunction with
the reservable liabilities exemption to determine the frequency of
deposit reporting from $81.9 million to $84.5 million for nonexempt depository institutions and from $52.6 million to $54.3 million for
exempt institutions. (Nonexempt institutions are those with total
reservable liabilities exceeding the amount exempted from reserve
requirements ($5.0 million) while exempt institutions are those with
total reservable liabilities not exceeding the amount exempted from
reserve requirements.) Thus, beginning in September 2000, nonexempt
institutions with total deposits of $84.5 million or more will be
required to report weekly while nonexempt institutions with total
deposits less than $84.5 million may report quarterly, in both cases on
form FR 2900. Similarly, exempt institutions with total deposits of
$54.3 million or more will be required to report quarterly on form FR
2910q while exempt institutions with total deposits less than $54.3
million may report annually on form FR 2910a.
Effective November 3, 1999, 12 C.F.R. Part 204 is amended as
Part 204--Reserve Requirements of Depository Institutions
1. The authority citation for Part 204 continues to read as
Authority: 12 U.S.C. 248(a), 248(c), 371a, 461, 601, 611, and 3105.
2. Section 204.9 is revised to read as follows:
Section 204.9 Reserve requirement ratios.
(a) Reserve percentages. The following reserve ratios are
prescribed for all depository institutions, Edge and Agreement
corporations, and United States branches and agencies of foreign banks:
Category Reserve requirement(1)
Net transaction accounts:
$0 to $44.3 million 3 percent of amount.
Over $44.3 million $1,329,000 plus 10 percent of
amount over $44.3 million
Nonpersonal time deposits 0 percent.
Eurocurrency liabilities 0 percent.
(1.) Before deducting the adjustment to be made by the paragraph
(b) of this section.
(b) Exemption from reserve requirements. Each depository
institution, Edge or agreement corporation, and U.S. branch or agency of
a foreign bank is subject to a zero percent reserve requirement on an
amount of its transaction accounts subject to the low reserve tranche in
paragraph (a) of this section not in excess of $5.0 million determined
in accordance with section 204.3(a)(3).3