Reserve Requirements of Depository Institutions

Document 2023-26212 is a Final Rule published by the Federal Reserve System in the Federal Register on November 29, 2023, with an effective date of December 29, 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 2024. 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 reserve requirement exemption amount for 2023 will remain $36.1 million, unchanged for 2024, consistent with the Federal Reserve Act (the "Act"). The Board is amending Regulation D to set the amount of the low reserve tranche at $644.0 million (decreased from $691.7 million in 2023). The adjustment to the low reserve tranche is derived using a statutory formula specified in the Act. The annual indexation of the reserve requirement exemption amount and low reserve tranche is required by statute but will not affect depository institutions' reserve requirements, which will remain zero. View the original at https://www.federalregister.gov/documents/2023/11/29/2023-26212/reserve-requirements-of-depository-institutions.

No. Document 2023-26212 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.