Press Release

November 27, 2023 Federal Reserve Board announces annual indexing of reserve requirement exemption amount and low reserve tranche for 2024 For release at 4:00 p.m. EST Share The Federal Reserve Board on Monday announced technical details related to reserve requirements for depository institutions, which will remain zero. The annual adjustment and publication of the reserve requirement exemption amount and low reserve tranche is required by law and does not indicate a change in depository institutions' reserve requirements. If reserve requirement ratios were not zero, the reserve requirement exemption amount and the low reserve tranche would be used to determine the reserve requirement ratios that could apply to a depository institution. Specifically, the reserve requirement exemption amount is the amount of a depository institution's reservable liabilities that will always be exempt from reserve requirements. The low reserve tranche amount is the amount of a depository institution's net transaction accounts that may be subject to a reserve requirement ratio not greater than three percent. A depository institution's net transaction accounts greater than the low reserve tranche may be subject to a reserve requirement ratio of not greater than 14 percent. For 2024, the reserve requirement exemption amount will be set at $36.1 million, unchanged from 2023, and the low reserve tranche will be set at $644.0 million, down from $691.7 million in 2023. The new amounts are derived using formulas specified in the Federal Reserve Act and will apply beginning January 1, 2024. For media inquiries, please email [email protected] or call 202-452-2955 Federal Register notice: Reserve Requirements of Depository Institutions (PDF)

Federal Reserve (2023, November 26). Press Release. Press Releases, Federal Reserve. https://whenthefedspeaks.com/doc/press_release_20231127_federal_reserve_board_announces_annual_indexing

@misc{wtfs_press_release_20231127_federal_reserve_board_announces_annual_indexing,
  author = {Federal Reserve},
  title = {Press Release},
  year = {2023},
  month = {Nov},
  howpublished = {Press Releases, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/press_release_20231127_federal_reserve_board_announces_annual_indexing},
  note = {Retrieved via When the Fed Speaks corpus}
}