District Circular Letters
November 24, 1997
REGULATION D:
LAGGED RESERVE MAINTENANCE
ADJUSTMENT OF RESERVE REQUIREMENTS
To Depository Institutions
in the Twelfth Federal Reserve District
Proposal to Institute Lagged Reserve Maintenance (Docket R-0988)
The Federal Reserve Board is requesting public comment on a proposal
to move from a system of contemporaneous reserve requirements to one where
reserves are maintained on a lagged basis.
The switch would make it easier for depositories to calculate their
required reserves and would increase the accuracy of information needed
by the Open Market Trading Desk to carry out its operations.
Comment is requested by January 12, 1998.
Under the proposed lagged system, the reserve maintenance period for
weekly reporting institutions would begin thirty days after the beginning
of the two-week reserve computation period. Under the current system,
the reserve maintenance period begins only two days after the beginning
of the computation period.
Decrease in Reserve Requirements of Depository Institutions (Docket
R-0945)
The Board announced a decrease from $49.3 million to $47.8 million in the
net transaction accounts to which a 3 percent reserve requirement will apply
in 1998.
The Board also changed from $4.4 million to $4.7 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 $75.0
million to $78.9 million for nonexempt depository institutions and from
$48.2 million to $50.7 million for exempt depository institutions.
Copies
Copies of the Board's notices (Docket R-0988
and Docket R-0945) are available from our
Corporate Services Department. To request copies to be sent via mail,
please call (415) 974-2748. To request copies to be sent via fax, please
call (415) 974-3333, and specify document numbers 4177 and 4175, respectively.
Additional Information
For additional information regarding Regulation D (Reserve Requirements
of Depository Institutions), please contact our Statistics Department,
at (415) 974-3149.
FEDERAL RESERVE BANK OF SAN FRANCISCO
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