WASHINGTON The Federal Reserve Board announced its latest annual adjustments to banks reserve requirements.
The Fed said that the first $5.5 million of deposits will be exempt from the reserve requirements, against $5 million last year. A bank most hold 3% in reserve of deposits between $5.5 million and $42.8 million, and 10% of deposits exceeding $42.8 million.
Any bank with less than $5.5 million of deposits is not subject to deposit reporting and is exempt from any reserve requirements.
These adjustments, announced Thursday, were based on deposit account growth at all institutions between June 30, 1999 and June 30 of this year. Most institutions supervised by the Fed must keep a percentage of deposits at one of its district banks.