Reserve Requirements of Depository Institutions
Abstract
The Board is amending Regulation D, Reserve Requirements of Depository Institutions, to reflect the annual indexing of the reserve requirement exemption amount and the low reserve tranche for 2023. The annual indexation of these amounts is required notwithstanding the Board's action in March 2020 of setting all reserve requirement ratios to zero. The Regulation D amendments set the reserve requirement exemption amount for 2023 at $36.1 million (increased from $32.4 million in 2022) and the amount of the low reserve tranche at $691.7 million (increased from $640.6 million in 2022). The adjustments to both of these amounts are derived using statutory formulas specified in the Federal Reserve Act (the "Act"). The annual indexation of the reserve requirement exemption amount and low reserve tranche, though required by statute, will not affect depository institutions' reserve requirements, which will remain zero.
Federal Register Source
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Frequently Asked Questions
What is the 2022-26065 Federal Register document?
Document 2022-26065 is a Final Rule published by the Federal Reserve System in the Federal Register on December 1, 2022, with an effective date of January 3, 2023. The Board is amending Regulation D, Reserve Requirements of Depository Institutions, to reflect the annual indexing of the reserve requirement exemption amount and the low reserve tranche for 2023. The annual indexation of these amounts is required notwithstanding the Board's action in March 2020 of setting all reserve requirement ratios to zero. The Regulation D amendments set the reserve requirement exemption amount for 2023 at $36.1 million (increased from $32.4 million in 2022) and the amount of the low reserve tranche at $691.7 million (increased from $640.6 million in 2022). The adjustments to both of these amounts are derived using statutory formulas specified in the Federal Reserve Act (the "Act"). The annual indexation of the reserve requirement exemption amount and low reserve tranche, though required by statute, will not affect depository institutions' reserve requirements, which will remain zero. View the original at https://www.federalregister.gov/documents/2022/12/01/2022-26065/reserve-requirements-of-depository-institutions.
Is document 2022-26065 an economically significant rule?
No. Document 2022-26065 is not classified as economically significant under Executive Order 12866. Economically significant rules require OIRA review and are estimated to have impacts of $100 million or more per year.