Circular
1997 Reserve Requirement Adjustments
December 9, 1996
Circular No. 10899

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

The following is from a statement issued by the Board of Governors of the Federal Reserve System:

The Federal Reserve Board has announced a decrease from $52.0 million to $49.3 million in the net transaction accounts to which a 3 percent reserve requirement will apply in 1997.

The Board also changed from $4.3 million to $4.4 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 $57.0 million to $59.3 million for nonexempt depository institutions and from $46.4 million to $48.2 million for exempt depository institutions.

The text of an amendment to the Board's Regulation D reflecting these actions, as published in the Federal Register of November 27, is available.

Questions regarding Regulation D may be directed to the following:

Maintenance Requirements:
Valerie I. Rainford, Credit and Risk Management Officer
William A. Walsh, Staff Director, Discount Division

Reporting Requirements:
Lessa J. Gomez, Reports Team Leader, Deposits Reports Division

Interpretation of Regulation D:
Michael Schussler, Counsel
Janice A. Oser, Supervising Examiner, Compliance Examinations Department