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Reserves Central
Federal Reserve balances can be classified as balances maintained to satisfy reserve balance requirements or excess reserve balances. Reserve balance requirements are the amount of balances that a financial institution must hold with the Federal Reserve to satisfy its reserve requirement. An institution’s reserve requirement is a fraction of its reservable liabilities (which include certain deposits and other liabilities); the fraction—the required reserve ratio—is set by the Board of Governors within limits prescribed in the Federal Reserve Act. A financial institution satisfies its reserve requirement by its holdings of vault cash (currency in its vault) and, if vault cash is insufficient to meet the requirement, by the balance maintained directly with a Federal Reserve Bank. Financial institutions also hold excess reserve balances (balances held in excess of the institution’s reserve balance requirement.) In addition, financial institutions may hold interest-bearing term deposits with Federal Reserve Banks. Term deposits are not considered reserve balances and cannot be used to satisfy an institution’s reserve balance requirement.
Reserves Administration Enhancements
The Federal Reserve is implementing changes to the policies, internal processes, and technologies that support the administration of reserve requirements. Enhancements are centered on two key areas:
- Simplifying the rules governing the administration of reserve requirements
- Introducing Reserves Central—Reserve Account Administration, a new application that supports reserves administration
Follow this link to the Reserves Administration Enhancements Resource Center to learn more. Please consult your Reserves Central District Contact with any questions.
Term Deposit Facility
The Term Deposit Facility (TDF) is a program under which the Federal Reserve offers term deposits to institutions that are eligible to receive interest on the balances they maintain at the Reserve Banks. An eligible institution may place funds at its Reserve Bank in a term deposit for an agreed upon number of days and reduce the amount of reserves it holds.
Follow this link to the Term Deposit Facility Resource Center to learn more.
Click the button below to access the Term Deposit Facility application.
Excess Balance Account
Excess balance accounts are limited-purpose accounts for maintaining the excess balances of institutions that are eligible to earn interest on balances at Federal Reserve Banks. The participating eligible institutions (‘participants’) authorize another institution (‘agent’) to manage the excess balance account on their behalf.
Follow this link to the Excess Balance Account Resource Center to learn more.
Interest on Reserves
The Federal Reserve has the authority to pay interest on balances held at Reserve Banks to satisfy reserve balance requirements and on excess balances.
The following materials will help familiarize you with Interest on Reserves:
- Announcement Letter
- Federal Reserve Board Announcement
- How to Calculate Required Reserve Balances and Excess Balances
- Related Press Releases
- Federal Register Notice
- Frequently Asked Questions
ReserveCalc
ReserveCalc is a software application of the Federal Reserve that allows staff at financial institutions to view reserve maintenance information.
Follow this link to learn more about ReserveCalc.
Announcing Transition to Reserves Central—Reserve Account Administration
On June 27, 2013, the Federal Reserve will implement Reserves Central—Reserve Account Administration, a new application that will replace ReserveCalc via the FedLine Web® access solution. For more information, visit the Reserves Administration Enhancements Resource Center.
Follow this link to learn more about the ReserveCalc Subscriber Access Review.
Click the button below to access the ReserveCalc application.
Reserve Maintenance Manual
The Reserve Maintenance Manual provides information fundamental to understanding reserve calculations and account maintenance. The manual is updated each year to reflect the annual indexation of values used in the calculation of reserve requirements and any other changes affecting reserve calculation and maintenance.
Reserve Maintenance Calendars
Weekly and quarterly reserve maintenance calendars for FR 2900 reporters are below:
Weekly:
Quarterly:
Revised maintenance period calendars that illustrate the new relationship between quarterly reporting periods and two-week maintenance periods will be made available closer to the June 27, 2013, implementation date for phase 2 reserve simplifications.
Follow this link to the Reserves Administration Enhancements Resource Center to learn more.
Current Exemption and Tranche Levels and Deposit Cutoff Levels
Read about the 2013 annual adjustments to amounts (reserve requirement exemption amount and the low reserve tranche) used in the calculation of reserve requirements and cutoff levels (nonexempt deposit cutoff and the reduced reporting limit) used to determine deposit reporting panels.
FedMail®
FedMail is an electronic messaging system used to transmit information from the Federal Reserve Banks to your organization. FedMail provides an alternate delivery mechanism to paper-based delivery. The service offers same-day delivery of statements and advices from a number of financial service areas.
FedMail can deliver the following reserves statements to your Internet e-mail address or fax machine:
- Report of Required Reserves
- Reserve Position Reports
- Preliminary Position Report
- Final Position Report
- Report of Required Reserves in Pass-Through Accounts
- Interest on Reserves Advices
- Advice of Interest Payment
- Advice of Interest Payment Adjustment
Announcing Transition to Reserves Central—Reserve Account Administration
Beginning June 27, 2013, with the implementation of Reserves Central—Reserve Account Administration, reserve reports will no longer be available via FedMail. For more information, visit the Reserves Administration Enhancements Resource Center.
Follow this link to learn more about Reserves Central—Reserves Account Administration Setup.
Prior to the implementation of the new Reserves Central—Reserve Account Administration application, you can still make changes to your FedMail service by completing the FedMail Service Request Form .
Questions?
Please contact your Reserves Central District Contact with questions about reserves administration.
