To All Depository Institutions in the Second Federal Reserve District:
The following is from a statement by the Board of Governors of the Federal Reserve System:
The Federal Reserve Board has announced a decrease from $46.5 million to $44.3 million in the net transaction accounts to which a 3 percent reserve requirement will apply in 2000. This adjustment is known as the low reserve tranche adjustment.
The Board also changed, for each depository institution, the amount of its reservable liabilities subject to a reserve requirement of zero percent, from $4.9 million to $5.0 million.
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 $81.9 million to $84.5 million for nonexempt depository institutions and from $52.6 million to $54.3 million for exempt depository institutions.
For depository institutions that report weekly, the low reserve tranche adjustment and reservable liabilities exemption adjustment will apply to the reserve computation period that begins Tuesday, November 30, 1999, and the corresponding reserve maintenance period that begins Thursday, December 30, 1999.
For institutions that report quarterly, the low reserve tranche adjustment and the reservable liabilities exemption adjustment will apply to the reserve computation period that begins Tuesday, December 21, 1999, and the corresponding reserve maintenance period that begins Thursday, January 20, 2000.
In addition, normal shift procedures that would have taken effect in September 1999 will resume in September 2000 for nonexempt institutions that would otherwise have shifted in 1999 from quarterly to weekly reporting, and for exempt institutions that would otherwise have shifted in 1999 from annual to quarterly reporting. [See, in this connection, our Circular No. 11178 regarding Y2K adjustments to the category shift procedures.]
The Board's official notice, as published in the Federal Register of October 4 is available as a file (pdf - 35kb). Any questions may be directed, at this Bank, to Debra Kuntz, Staff Director of the Deposit Reports Division.