## Jeffrey Epstein signed will two days before death, records show

Jeffrey Epstein signed a will just two days before he killed himself in the Manhattan federal jail, new court records show, opening a new legal front in what could be a years-long battle over the financier’s fortune.

Court papers filed last week in the US Virgin Islands list no details of beneficiaries but put the estate at more than 577 million US dollars (£475 million), including more than 56 million US dollars (£46 million) in cash.

The existence of the will, first reported by the New York Post, raised new questions about Epstein’s final days inside the Metropolitan Correctional Centre, where he was awaiting trial on federal sex trafficking and conspiracy charges.

His signing of the document foreshadowed his August 10 suicide, a jailhouse death that has prompted multiple federal inquiries and cast a harsh light on staffing shortages at the Manhattan facility.

Epstein died at the Metropolitan Correctional Centre (AP Photo/Mary Altaffer)

On Monday, prosecutors moved to dismiss the indictment against Epstein but said they were considering whether to charge others with facilitating his alleged abuse of dozens of girls.

The filing of the will, meanwhile, had been closely followed by lawyers representing women who claim they were sexually abused by Epstein years ago when they were teenagers and recruited into his residences to provide him massages.

Several lawyers vowed to go after his assets even if the will had named beneficiaries, as Epstein’s death means there will be no trial on the criminal charges against him.

“Give his entire estate to his victims. It is the only justice they can get,” one of those lawyers, Lisa Bloom, wrote in an email. “And they deserve it. And on behalf of the Epstein victims I represent, I intend to fight for it.”

Former federal prosecutor David S Weinstein, who is now in private practice in Miami but not involved in the Epstein case, said states and US territories have certain time frames within which to make a claim against someone’s estate.

“There are certainly going to be a lot of lawyers involved,” he said. “It’s not going to be over any time soon.”

A hedge fund manager who hobnobbed with the rich and famous, Epstein owned a Caribbean island, homes in Paris and New York City, a New Mexico ranch and a fleet of high-price cars.

He had more than 112 million US dollars (£92 million) worth of equities, according to the will, and nearly 200 million dollars (£165 million) in “hedge funds & private equity investments”.

Among the properties that will be subject to appraisal and valuation are his collection of fine arts, antiques and other collectables.

As part of his 2008 plea deal to Florida state charges, Epstein made undisclosed financial settlements with dozens of his victims.

It is unclear how those settlements might affect any new claims made on his estate.

William Blum, a lawyer for Epstein’s estate, said in a statement to The Associated Press that any debts or claims against the estate will be “fairly administered”.

He said the document was Epstein’s original last will.

https://www.dailymail.co.uk/wires/pa/article-7373527/Jeffrey-Epstein-signed-two-days-death.html

# U.S. tests first ground-launched cruise missile after INF treaty exit

The Pentagon said on Monday it tested a conventionally configured ground-launched cruise missile with a range of more than 500 km, the first such test since the United States pulled out of the Intermediate-range Nuclear Forces Treaty (INF).

The United States formally withdrew from the landmark 1987 pact with Russia on Aug. 2 after determining that Moscow was violating the treaty, an accusation the Kremlin has denied.

The treaty, negotiated by then-U.S. President Ronald Reagan and Soviet leader Mikhail Gorbachev, banned land-based missiles with a range of between 310 and 3,400 miles (500 to 5,500 km).

In a statement, the Pentagon said the test took place on Sunday at San Nicolas Island, California, and the missile hit its target after more than 500km of flight.

The test would have been prohibited by the INF treaty.

“The testing by (the) U.S. military of a land-based missile banned under INF treaty two weeks after the official termination of this treaty is a blatant cynicism and mockery of the international community,” the RIA news agency cited Russian lawmaker Frants Klintsevich as saying on Monday.

© Reuters/Maxim Shemetov National flags of Russia and U.S. fly at Vnukovo International Airport in Moscow

“We, of course, will do our best in the shortest period of time to ensure that the United States does not have superiority in these types of weapons,” he said, adding that Russia did not intend to enter into an arms race.

U.S. officials had said for a number of months that they planned to carry out the test in August. The United States plans to test an intermediate-range ballistic missile in November.

Moscow denies flouting the accord and has accused Washington of breaking the pact, allegations rejected by the United States.

The dispute is aggravating the worst U.S.-Russia friction since the Cold War ended in 1991. Some experts believe the treaty’s collapse could undermine other arms control agreements and speed an erosion of the global system designed to block the spread of nuclear arms.

A Pentagon spokesman told Reuters that Sunday’s test used an MK41 launcher, but the system tested was not the same as the Aegis Ashore missile defence system currently operating in Romania and under construction in Poland.

Russia’s Defense Ministry did not reply to a Reuters request for comment sent outside normal working hours.

“Russia had alleged for years that the land-based MK-41 could launch Tomahawks and therefore would violate the treaty,” said Kingston Reif, director for disarmament research at the Arms Control Association advocacy group.

“Even though this is the first test of the combination, Russia will no doubt claim vindication,” Reif said.

U.S. Defense Secretary Mark Esper has said that while he is in favour of placing ground-launched, intermediate-range missiles in Asia, it could be years before such missiles are ready to be deployed.

https://www.msn.com/en-au/news/world/us-tests-first-ground-launched-cruise-missile-after-inf-treaty-exit/ar-AAG1N0S

# Top Secret Russian Nuclear Engine Explodes During Testing

## Russia evacuates village near site of military blast as experts reveal radiation levels spiked by 16 times after rocket engine accident

• Evacuation of village of Nyonoksa was ordered today after last Thursday’s blast
• Five employees of Kremlin’s nuclear agency died in the missile engine explosion
• Officials had previously claimed that no dangerous substances were released
• This despite the nearby city of Severodvinsk seeing a 16-fold spike in radiation

Russia will evacuate a village tomorrow near the site of a military missile blast after experts revealed radiation levels had spiked 16-fold after the rocket accident.

Five employees of the Kremlin’s nuclear agency died when a rocket engine exploded at the far northern military base last Thursday outside the village of Nyonoksa.

Today’s Russia’s state weather service said radiation levels had spiked in the nearby city of Severodvinsk up to 16 times last week, despite officials previously claiming no dangerous substances had been released.

A pre-dawn train will evacuate all 500 villagers of Nyonksa on Wednesday, ahead of what the authorities claim were pre-planned activities by the military.

A mysterious Russian military explosion that left five Russian scientists dead last week happened during tests on a new nuclear-powered rocket. Officials were seen wearing protective clothing as they transported casualties last week (pictured)

The five victims of the Russian military ‘radiation explosion’ were buried yesterday in a sombre mourning ceremony in ‘closed’ nuclear research town Sarov

The ‘national heroes’ were given a military salute of gunfire over their heavy coffins at a local cemetery

A cortège of black vehicles brought the five coffins to the mourning ceremony which was held at the institute and later the cemetery

Today it was revealed, ten medics who provided treatment to the wounded last week had been dispatched to Moscow for urgent medical checks.

The front-line doctors were reported to be ‘depressed as to why they were not told what they were dealing with’ in the aftermath of the weapons test.

The medics were not informed that they needed special anti-radiation suits.

One surgeon’s clothing was checked after an operation using a radiation measuring device – and found to be seriously contaminated.

They have been sent to Burnazyan Federal Medical and Biophysical Centre which specialises in conditions caused by radiation, and where wounded scientists from the incident are also being treated.

US nuclear experts this weekend blamed the testing of a nuclear-powered cruise missile for the mysterious explosion.

The Russian Ministry of Defence, quoted by state-run news outlets, had reported the blast was from liquid propellant for a rocket engine.

Thousands of people attended the burials of the five nuclear engineers killed in the accident yesterday in the city of Sarov.

A pre-dawn train will evacuate all 500 villagers of Nyonksa on Wednesday, ahead of what the authorities claim were pre-planned activities by the military

Experts said they suspected the explosion and the radiation release resulted from a mishap during the testing of a nuclear-powered cruise missile at a facility outside the village of Nyonoksa

Two of the men were blown into the sea at the top secret naval weapons testing zone in the White Sea.

Their bodies were initially lost but later found and funerals for all those killed were to be held in a secret closed nuclear research town in Sarov from where foreigners are banned.

According to one version, the troubling missile accident came as the scientists were working on the nuclear engine of deadly Burevestnik cruise missile with ‘unlimited range’ – nicknamed the ‘Flying Chernobyl’ – when it exploded.

One of the dead was Evgeny Korotaev, 50, a leading electronics engineer and also a popular DJ, whose second wife had given birth to twin girls just seven months ago.

Like the other dead, he worked for the classified Institute of Experimental Physics based in Sarov, 235 miles east of Moscow, known as Arzamas-16 in Soviet times.

Vyacheslav Lipshev, 40, was one of the experts killed in the blast. His widow Natalia Alexeeva, 40, posted a tribute: ‘I love you my dear, how will I live without you? You are my everything.’

Software and hardware specialist Alexey Vyushin (left), 43, and Vyasheslav Yanovsky (right), 71, were both killed

His daughter from the first marriage, Oksana, 26, posted a childhood picture of her with her father and the caption: ‘Daddy, I love you so much.’

She only recently gave birth to his grandchild.

Another killed was Vyasheslav Yanovsky, 71, one of Russia’s most senior nuclear scientists, deputy head of research and testing at the institute.

He was an ‘honoured worker’ of Moscow’s nuclear industry, and died alongside Vyacheslav Lipshev, 40, head of the institute’s research and development team.

Lipishev’s widow Natalia Alexeeva, 40, posted a tribute: ‘I love you my dear, how will I live without you? You are my everything.’

Software and hardware specialist Alexey Vyushin, 43, who had developed a high-energy photon spectrometer, and Sergey Pichugin, 45, a testing engineer, were also killed.

One of the dead was Evgeny Korotaev, 50, a leading electronics engineer and also a popular DJ, whose second wife had given birth to twin girls just seven months ago.

Oksana Korataeva (pictured) is the eldest daughter of Evgney Korataev, who died in the blast

Korotaev’s daughter from the first marriage, Oksana, 26, posted a childhood picture of her with her father and the caption: ‘Daddy, I love you so much.’

All are expected to be honoured posthumously by Vladimir Putin.

President Donald Trump weighed in on the catastrophe yesterday, tweeting, ‘The United States is learning much from the failed missile explosion in Russia.

‘We have similar, though more advanced, technology. The Russian ‘Skyfall’ explosion has people worried about the air around the facility, and far beyond. Not good!’

The U.S. and the Soviet Union pondered nuclear-powered missiles in the 1960s, but they abandoned those projects as too unstable and dangerous.

While presenting the new missile, Putin claimed it will have an unlimited range, allowing it to circle the globe unnoticed, bypassing the enemy’s missile defense assets to strike undetected.

Nuclear centre deputy head Vyacheslav Solovyev admitted the scientists were killed by an explosion in a small nuclear reactor, part of the engine of the missile

Some reports suggested previous tests of the Burevestnik missile had been conducted on the barren Arctic archipelago of Novaya Zemlya and the Kapustin Yar testing range in southern Russia before they were moved to Nyonoksa.

Moving the tests from sparsely populated areas to a range close to a big city may reflect the military’s increased confidence in the new weapon.

## Perspective from the BEA Accounts

BEA produces some of the most closely watched economic statistics that influence decisions of government officials, business people, and individuals. These statistics provide a comprehensive, up-to-date picture of the U.S. economy. The data on this page are drawn from featured BEA economic accounts.

Gross Domestic Product, 2nd quarter 2019 (advance estimate), and annual update
 2nd quarter 2019: 2.1 percent 1st quarter 2019: 3.1 percent

Real gross domestic product (GDP) increased 2.1 percent in the second quarter of 2019, according to the “advance” estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 3.1 percent.

• Current Release: July 26, 2019
• Next Release: August 29, 2019

https://www.bea.gov/news/glance

# Reserve requirement

The reserve requirement (or cash reserve ratio) is a central bank regulation employed by most, but not all, of the world’s central banks, that sets the minimum amount of reserves that must be held by a commercial bank. The minimum reserve is generally determined by the central bank to be no less than a specified percentage of the amount of deposit liabilities the commercial bank owes to its customers. The commercial bank’s reserves normally consist of cash owned by the bank and stored physically in the bank vault (vault cash), plus the amount of the commercial bank’s balance in that bank’s account with the central bank.

The required reserve ratio is sometimes used as a tool in monetary policy, influencing the country’s borrowing and interest rates by changing the amount of funds available for banks to make loans with.[1] Western central banks rarely increase the reserve requirements because it would cause immediate liquidity problems for banks with low excess reserves; they generally prefer to use open market operations (buying and selling government-issued bonds) to implement their monetary policy. The People’s Bank of China uses changes in reserve requirements as an inflation-fighting tool, and raised the reserve requirement ten times in 2007 and eleven times since the beginning of 2010.

An institution that holds reserves in excess of the required amount is said to hold excess reserves.

## Effects on money supply

### Conventional view

The theory that a reserve requirement can be used as a tool of monetary policy is frequently found in economics textbooks. Under the theory, the higher the reserve requirement is set, the less funds banks will have available to lend out,[citation needed] leading to lower money creation and perhaps to higher purchasing power of the money previously in use. Under this view, the effect is multiplied, because money obtained as loan proceeds can be re-deposited, and a portion of those deposits may again be lent out,[citation needed] and so on. Under this theory, the effect on the money supply is governed by the following formulas:

{\displaystyle M_{1}=MB*m\,} : definitional relationship between monetary base MB (bank reserves plus currency held by the non-bank public) and the narrowly defined money supply{\displaystyle M_{1}},
{\displaystyle m={\frac {(1+c)}{(c+R)}}={\frac {1+{\frac {C}{D}}}{{\frac {C}{D}}+R}}} : derived formula for the money multiplier m, the factor by which lending and re-lending leads {\displaystyle M_{1}} to be a multiple of the monetary base:

where notationally,

{\displaystyle c=} the currency ratio: the ratio of the public’s holdings of currency (undeposited cash) to the public’s holdings of demand deposits; and
{\displaystyle R=} the total reserve ratio (the ratio of legally required plus non-required reserve holdings of banks to demand deposit liabilities of banks).

However, in the United States (and other countries except Brazil, China, India, Russia), the reserve requirements are generally not frequently altered to implement monetary policy because of the short-term disruptive effect on financial markets.[citation needed]

### Endogenous money view

Some economists dispute the conventional theory of the reserve requirement.[2] Criticisms of the conventional theory are usually associated with theories of endogenous money.

Jaromir Benes and Michael Kumhof of the IMF Research Department report that the “deposit multiplier” of the undergraduate economics textbook, where monetary aggregates are created at the initiative of the central bank, through an initial injection of high-powered money[clarification needed] into the banking system that gets multiplied through bank lending, turns the actual operation of the monetary transmission mechanism on its head. Benes and Kumhof assert that in most cases where banks ask for replenishment of depleted reserves, the central bank obliges.[3] Under this view, reserves therefore impose no constraints, as the deposit multiplier is simply, in the words of Kydland and Prescott (1990), a myth. Under this theory, private banks almost fully control the money creation process.[4]

## Required reserves

### United States

In the United States, a reserve requirement[5] (or liquidity ratio) is a minimum value, set by the Board of Governors of the Federal Reserve System, of the ratio of required reserves to a category of deposit liabilities (called the “Net Transaction Accounts” or “NTAs”) owed by depository institutions to their customers (e.g., owed by commercial banks including U.S. branches of a foreign bank, savings and loan associationsavings bankcredit union). The deposit liability categories currently subject to reserve requirements are mainly checking accounts. There is no reserve requirement on savings accounts and time deposit accounts owned by individuals.[6] The total amount of all NTAs held by customers with U.S. depository institutions, plus the U.S. paper currency and coin currency held by the nonbank public, is called M1.

A depository institution can satisfy its reserve requirements by holding either vault cash[7] or reserve deposits. An institution that is a member of the Federal Reserve System must hold its reserve deposits at a Federal Reserve Bank. Nonmember institutions can elect to hold their reserve deposits at a member institution on a pass-through basis.[8]

A depository institution’s reserve requirements vary by the dollar amount of NTAs held by customers of that institution. Effective January 18, 2018, institutions with net transactions accounts:

• Of less than $16 million have no minimum reserve requirement; • Between$16 million and $122.3 million must have a liquidity ratio of 3% of NTAs; • Exceeding$122.3 million must have a liquidity ratio of 10% of NTAs.[8]

The threshold monetary amounts are recalculated annually according to a statutory formula.

Effective 27 December 1990, a liquidity ratio of zero has applied to CDs and time deposits, owned by entities other than households, and the Eurocurrency liabilities of depository institutions. Deposits owned by foreign corporations or governments are currently not subject to reserve requirements.[8]

When an institution fails to satisfy its reserve requirements, it can make up its deficiency with reserves borrowed from a Federal Reserve Bank or from an institution holding reserves in excess of reserve requirements. Such loans are typically due in 24 hours or less.

An institution’s overnight reserves, averaged over some maintenance period, must equal or exceed its average required reserves, calculated over the same maintenance period. If this calculation is satisfied, there is no requirement that reserves be held at any point in time. Hence reserve requirements play only a limited role in money creation in the United States. Since quantitative easing began in 2008, they have been even less important, as an enormous glut of excess reserves now exists (over the whole system, though in theory, individual banks may still run into temporary shortfalls).

The International Banking Act of 1978 requires branches of foreign banks operating in the United States to follow the same required reserve ratio standards.[9][10]

### Countries without reserve requirements

Canada, the UK, New Zealand, Australia, Sweden and Hong Kong[11] have no reserve requirements.

This does not mean that banks can—even in theory—create money without limit. On the contrary, banks are constrained by capital requirements, which are arguably more important than reserve requirements even in countries that have reserve requirements.

It also does not mean that a commercial bank’s overnight reserves can become negative, in these countries. The central bank will always step in to lend the necessary reserves if necessary so that this does not happen; this is sometimes described as “defending the payment system”. Historically a central bank might once have run out of reserves to lend and so have had to suspend redemptions, but this can no longer happen to modern central banks because of the end of the gold standard worldwide, which means that all nations use a fiat currency.

A zero reserve requirement cannot be explained by a theory that holds that monetary policy works by varying the quantity of money using the reserve requirement.

Even in the United States, which retains formal (though now mostly irrelevant[citation needed]) reserve requirements, the notion of controlling the money supply by targeting the quantity of base money fell out of favor many years ago, and now the pragmatic explanation of monetary policy refers to targeting the interest rate to control the broad money supply.

#### United Kingdom

In the UK the term clearing banks is sometimes used, meaning banks that have direct access to the clearing system. However, for the purposes of clarity, the term commercial banks will be used for the remainder of this section.

The Bank of England, which is the central bank for the entire United Kingdom, previously held to a voluntary reserve ratio system, with no minimum reserve requirement set. In theory this meant that commercial banks could retain zero reserves. The average cash reserve ratio across the entire United Kingdom banking system, though, was higher during that period, at about 0.15% as of 1999.[12]

From 1971 to 1980, the commercial banks all agreed to a reserve ratio of 1.5%. In 1981 this requirement was abolished.[12]

From 1981 to 2009, each commercial bank set out its own monthly voluntary reserve target in a contract with the Bank of England. Both shortfalls and excesses of reserves relative to the commercial bank’s own target over an averaging period of one day[12] would result in a charge, incentivising the commercial bank to stay near its target, a system known as reserves averaging.

Upon the parallel introduction of quantitative easing and interest on excess reserves in 2009, banks were no longer required to set out a target, and so were no longer penalised for holding excess reserves; indeed, they were proportionally compensated for holding all their reserves at the Bank Rate (the Bank of England now uses the same interest rate for its bank rate, its deposit rate and its interest rate target).[13] In the absence of an agreed target, the concept of excess reserves does not really apply to the Bank of England any longer, so it is technically incorrect to call its new policy “interest on excess reserves”.

Canada abolished its reserve requirement in 1992.[12]

### Other countries

Other countries have required reserve ratios (or RRRs) that are statutorily enforced:[14]

Country Required reserve (in %) Note
Australia None Statutory reserve deposits abolished in 1988, replaced with 1% non-callable deposits[15]
New Zealand None 1985[16]
Sweden None Effective 1 April 1994[17]
Eurozone 1.00 Effective 18 January 2012.[18] Down from 2% between January 1999 and January 2012.
Czech Republic 2.00 Since 7 October 2009
Hungary 2.00 Since November 2008
South Africa 2.50
Switzerland 2.50
Latvia 3.00 Just after the Parex Bank bailout (24.12.2008), Latvian Central Bank
decreased the RRR from 7% (?) down to 3%[19]
Poland 3.50 As of 31 December 2010 [20]
Romania 8.00 As of 24 May 2015 for lei. 10% for foreign currency as of 24 October 2016.[21]
Russia 4.00 Effective 1 April 2011, up from 2.5% in January 2011.[22]
Chile 4.50
India 4.00 June 2 2015, as per RBI.[23]
Bangladesh 6.00 Raised from 5.50, effective from 15 December 2010
Lithuania 6.00
Nigeria 20.00 Raised from 15.00, effective from 25 November 2014[24]
Pakistan 5.00 Since 1 November 2008
Taiwan 7.00 [25]
Turkey 8.50 Since 19 February 2013
Jordan 8.00
Zambia 8.00
Burundi 8.50
Ghana 9.00
Iceland 2.00 [26]
Israel 9.00 The required reserve ratio is called minimum capital ratio.[27]
Mexico 10.50
Sri Lanka 8.00 With effect from 29 April 2011. 8% of total rupee deposit liabilities.
Bulgaria 10.00 Banks shall maintain minimum required reserves to the amount of 10% of the deposit base (effective from 1 December 2008) with two exceptions (effective from 1 January 2009): 1. on funds attracted by banks from abroad: 5%; 2. on funds attracted from state and local government budgets: 0%.[28]
Croatia 14.00 Down from 17%, effective from 14 January 2009[29]
Costa Rica 15.00
Malawi 15.00
Nepal 6.00 From 20 July 2014 (for commercial banks)[30]
Hong Kong None [11]
Brazil 21.00 Term deposits have a 33% RRR and savings accounts a 20% ratio.[31]
China 17.00 China cut bank reserves again to counter slowdown as of 29 February 2016.[32]
Tajikistan 20.00
Suriname 25.00 Down from 27%, effective 1 January 2007[33]
Lebanon 30.00 [34]

### Historical changes in reserve ratios

In some countries, the cash reserve ratios have decreased over time; in some countries they have increased:[35]

Country 1968 1978 1988 1998
United Kingdom 20.5 15.9 5.0 3.1
Turkey 58.3 62.7 30.8 18.0
Germany 19.0 19.3 17.2 11.9
United States 12.3 10.1 8.5 10.3
India[36] 3 6 10 10-11

(Ratios are expressed in percentage points.)

## References

1. ^ “Monetary Policy Aims – Bank of Russia”archive.org. 7 July 2001.
2. ^ Michael, McLeay. “Money creation in the modern economy”(PDF). Bank of England.
3. ^ Benes, Jaromir, and Michael Kumhof. The chicago plan revisited. International Monetary Fund, 2012. http://www.imf.org/external/pubs/ft/wp/2012/wp12202.pdf
4. ^ Benes, Kumhof. http://www.imf.org/external/pubs/ft/wp/2012/wp12202.pdf
5. ^ See generally Regulation D, at 12 C.F.R. sec. 204.4 and sec. 204.5
6. ^ “eCFR — Code of Federal Regulations”http://www.ecfr.gov.
7. ^ See 12 C.F.R. sec. 204.2(k).
8.  “The Fed – Reserve Requirements”federalreserve.gov.
9. ^ Ahorny, Joseph; Saunders, Anthony; Swary, Itzhak (1985). “The Effects of the International Banking Act on Domestic Bank Profitability and Risk”. Journal of Money, Credit, and Banking. JSTOR. 17: 493–506. JSTOR 1992444.
10. ^ “International Banking Act of 1978”Banking Law 101.
11.  “Central banks’ exit strategies from quantitative easing”Hong Kong Monetary Authority. Retrieved 13 August 2009.
12.  Jagdish Handa (2008). Monetary Economics (2nd ed.). Routledge. p. 347.
13. ^ “Sterling Operations – Implementation of Monetary Policy”. Bank of England. Retrieved 26 August 2013.
14. ^ Lecture 8, Slide 4: “Central Banking and the Money Supply” from the presentation Monetary Macroeconomics by Dr. Pinar YesinUniversity of Zurich, based on 2003 survey of CBC participants at the Study Center Gerzensee
15. ^ “Inquiry into the Australian Banking Industry”, Reserve Bank of Australia, January 1991
16. ^ [1]
17. ^ Lotsberg, Kari “Archived copy” (PDF). Archived from the original (PDF) on 8 December 2015. Retrieved 1 December2015. Penning- & valutapolitik, p. 45-47, 1994:2
18. ^ Bank, European Central. “How to calculate the minimum reserve requirements”European Central Bank.
19. ^ “Minimum Reserve Ratio”Bank of Latvia. Retrieved 29 December 2010.
20. ^ “Narodowy Bank Polski – Internet Information Service”nbp.pl.
21. ^ “Banca Naţională a României – Reserve requirements”http://www.bnr.ro.
22. ^ Central bank of Russia Required reserve ratio on credit institutions’ liabilities to non-resident has been raised to 4.0%
23. ^ [2] ndtv.com
25. ^ Liquidity ratio and liquid reserves of deposit money banks. Data released by Taiwan’s central bank in October 2010.
26. ^ “Iceland Reserve Requirement Ratio | Economic Indicators”http://www.ceicdata.com. Retrieved 9 January 2018.
27. ^ “Minimum capital ratio” (PDF)Bank of Israel. Retrieved 29 December 2010.
28. ^ “Ordinance No. 21 of the BNB on the Minimum Required Reserves Maintained with the Bulgarian National Bank by Banks” (PDF)Bulgarian National Bank.
29. ^
30. ^ “Nepal Rastra Bank”http://www.nrb.org.np.
31. ^ “Circular 3.632” (PDF)bcb.gov.br.
32. ^ CNBC (29 February 2016). “China central bank cuts reserve requirement ratio”cnbc.com.
33. ^ “Reserve base en Kasreserve”Centrale Bank van Suriname. Retrieved 21 December 2009.
34. ^ “Lebanon ‘immune’ to financial crisis”. 5 December 2008 – via news.bbc.co.uk.
35. ^ IMF Financial Statistic Yearbook
36. ^ Chronology of Bankrate, CRR and SLR Changes Archived29 August 2011 at the Wayback MachineReserve Bank of India

### Reserve Requirements

Reserve requirements are the amount of funds that a depository institution must hold in reserve against specified deposit liabilities. Within limits specified by law, the Board of Governors has sole authority over changes in reserve requirements. Depository institutions must hold reserves in the form of vault cash or deposits with Federal Reserve Banks.

The dollar amount of a depository institution’s reserve requirement is determined by applying the reserve ratios specified in the Federal Reserve Board’s Regulation D to an institution’s reservable liabilities (see table of reserve requirements). Reservable liabilities consist of net transaction accounts, nonpersonal time deposits, and Eurocurrency liabilities. Since December 27, 1990, nonpersonal time deposits and Eurocurrency liabilities have had a reserve ratio of zero.

The reserve ratio on net transactions accounts depends on the amount of net transactions accounts at the depository institution. The Garn-St Germain Act of 1982 exempted the first $2 million of reservable liabilities from reserve requirements. This “exemption amount” is adjusted each year according to a formula specified by the act. The amount of net transaction accounts subject to a reserve requirement ratio of 3 percent was set under the Monetary Control Act of 1980 at$25 million. This “low reserve tranche” is also adjusted each year (see table of low reserve tranche amounts and exemption amounts since 1982). Net transaction accounts in excess of the low reserve tranche are currently reservable at 10 percent.

For more history on the changes in reserve requirement ratios and the indexation of the exemption and low reserve tranche, see the annual review table. Additional details on reserve requirements can be found in the Reserve Maintenance Manual and in the article (119 KB PDF) in the Federal Reserve Bulletin, the appendix of which has tables of historical reserve ratios.

#### Reserve Requirements

Liability Type Requirement
% of liabilities Effective date
Net transaction accounts 1
$0 to$16.3 million2 0 1-17-19
More than $16.3 million to$124.2 million3 3 1-17-19
More than $124.2 million 10 1-17-19 Nonpersonal time deposits 0 12-27-90 Eurocurrency liabilities 0 12-27-90 Return to text Notes: Reserve requirements must be satisfied by holding vault cash and, if vault cash is insufficient, also by a deposit maintained with a Federal Reserve Bank. An institution may hold that deposit directly with a Reserve Bank or with another institution in a pass-through relationship. Reserve requirements are imposed on “depository institutions,” defined as commercial banks, savings banks, savings and loan associations, credit unions, U.S. branches and agencies of foreign banks, Edge corporations, and agreement corporations. 1. Total transaction accounts consists of demand deposits, automatic transfer service (ATS) accounts, NOW accounts, share draft accounts, telephone or preauthorized transfer accounts, ineligible bankers acceptances, and obligations issued by affiliates maturing in seven days or less. Net transaction accounts are total transaction accounts less amounts due from other depository institutions and less cash items in the process of collection. For a more detailed description of these deposit types, see Form FR 2900 at http://www.federalreserve.gov/apps/reportforms/default.aspx Return to table 2. The amount of net transaction accounts subject to a reserve requirement ratio of zero percent (the “exemption amount”) is adjusted each year by statute. The exemption amount is adjusted upward by 80 percent of the previous year’s (June 30 to June 30) rate of increase in total reservable liabilities at all depository institutions. No adjustment is made in the event of a decrease in such liabilities. Return to table 3. The amount of net transaction accounts subject to a reserve requirement ratio of 3 percent is the low reserve tranche. By statute, the upper limit of the low reserve tranche is adjusted each year by 80 percent of the previous year’s (June 30 to June 30) rate of increase or decrease in net transaction accounts held by all depository institutions. Return to table #### Low Reserve Tranche Amounts and Exemption Amounts since 1982 Effective date (beginning of maintenance period) Low reserve tranche amount (millions of U.S. dollars) Exemption amount (millions of U.S. dollars) January 14, 1982 26.0 n.a. December 23, 1982 n.a. 2.1 January 13, 1983 26.3 *** January 12, 1984 28.9 2.2 January 3, 1985 29.8 2.4 January 2, 1986 31.7 2.6 January 1, 1987 36.7 2.9 December 31, 1987 40.5 3.2 December 29, 1988 41.5 3.4 December 28, 1989 40.4 3.4 December 27, 1990 41.1 3.4 December 26, 1991 42.2 3.6 December 24, 1992 46.8 3.8 December 23, 1993 51.9 4.0 December 22, 1994 54.0 4.2 December 21, 1995 52.0 4.3 December 31, 1996 49.3 4.4 January 1, 1998 47.8 4.7 December 31, 1998 46.5 4.9 December 30, 1999 44.3 5.0 December 28, 2000 42.8 5.5 December 27, 2001 41.3 5.7 December 26, 2002 42.1 6.0 December 25, 2003 45.4 6.6 December 23, 2004 47.6 7.0 December 22, 2005 48.3 7.8 December 21, 2006 45.8 8.5 December 20, 2007 43.9 9.3 January 1, 2009 44.4 10.3 December 31, 2009 55.2 10.7 December 30, 2010 58.8 10.7 December 29, 2011 71.0 11.5 December 27, 2012 79.5 12.4 January 23, 2014 89.0 13.3 January 22, 2015 103.6 14.5 January 21, 2016 110.2 15.2 January 19, 2017 115.1 15.5 January 18, 2018 122.3 16.0 January 17, 2019 124.2 16.3 Return to text *Not applicable Return to table ***No change Return to table #### Regulatory Changes in Reserve Requirements and Indexation of the Low Reserve Tranche and the Reserve Requirement Exemption The following list covers regulatory changes in reserve requirements and indexation of the low reserve tranche and the reserve requirement exemption beginning December 1, 1959, and their effects on required reserves. 105. Effective for the reserve maintenance period beginning December 27, 2012, the low reserve tranche for net transaction accounts will rise from$71.0 million to $79.5 million. The reserve requirement exemption will rise from$11.5 million to $12.4 million. These actions will lower total required reserves by an estimated$971 million.
104. Effective for the reserve maintenance period beginning December 29, 2011, the low reserve tranche for net transaction accounts will rise from $58.8 million to$71.0 million. The reserve requirement exemption will rise from $10.7 million to$11.5 million. These actions will lower total required reserves by an estimated $1.33 billion. 103. Effective for the reserve maintenance period beginning December 30, 2010, the low reserve tranche for net transaction accounts was raised from$55.2 million to $58.8 million. The reserve requirement exemption remained at$10.7 million. These actions lowered total required reserves by an estimated $353 million. 102. Effective for the reserve maintenance period beginning December 31, 2009, the low reserve tranche for net transaction accounts was raised from$44.4 million to $55.2 million. The reserve requirement exemption was raised from$10.3 million to $10.7 million. These actions lowered total required reserves by an estimated$1.24 billion.
101. Effective for the reserve maintenance period beginning January 1, 2009, the low reserve tranche for net transaction accounts was raised from $43.9 million to$44.4 million. The reserve requirement exemption was raised from $9.3 million to$10.3 million. The actions lowered total required reserves by an estimated $270 million. 100. Effective for the reserve maintenance period beginning December 20, 2007, the low reserve tranche for net transaction accounts was reduced from$45.8 million to $43.9 million. The reserve requirement exemption was raised from$8.5 million to $9.3 million. The actions raised total required reserves by an estimated$57 million.
99. Effective for the reserve maintenance period beginning December 21, 2006, the low reserve tranche for net transaction accounts was reduced from $48.3 million to$45.8 million. The reserve requirement exemption was raised from $7.8 million to$8.5 million. The actions raised total required reserves by an estimated $146 million. 98. Effective for the reserve maintenance period beginning December 22, 2005, the low reserve tranche for net transaction accounts was increased from$47.6 million to $48.3 million. The reserve requirement exemption was raised from$7.0 million to $7.8 million. The actions lowered total required reserves by an estimated$369 million.
97. Effective for the reserve maintenance period beginning December 23, 2004, the low reserve tranche for net transaction accounts was increased from $45.4 million to$47.6 million. The reserve requirement exemption was raised from $6.6 million to$7.0 million. The actions lowered total required reserves by an estimated $506 million. 96. Effective for the reserve maintenance period beginning December 25, 2003, the low reserve tranche for net transaction accounts was increased from$42.1 million to $45.4 million. The reserve requirement exemption was raised from$6.0 million to $6.6 million. The actions lowered total required reserves by an estimated$689 million.
95. Effective for the reserve maintenance period beginning December 26, 2002, the low reserve tranche for net transaction accounts was increased from $41.3 million to$42.1 million. The reserve requirement exemption was raised from $5.57 million to$6.0 million. The actions lowered total required reserves by an estimated $201 million. 94. Effective for the reserve maintenance period beginning December 27, 2001, the low reserve tranche for net transaction accounts was reduced from$42.8 million to $41.3 million. The reserve requirement exemption was raised from$5.5 million to $5.7 million. The actions raised total required reserves by an estimated$154 million.
93. Effective for the reserve maintenance period beginning December 28, 2000, the low reserve tranche for net transaction accounts was reduced from $44.3 million to$42.8 million. The reserve requirement exemption was raised from $5.0 million to$5.5 million. The actions raised required reserves by an estimated $60 million. 92. Effective for the reserve maintenance period beginning December 30, 1999, the low reserve tranche for net transaction accounts was reduced from$46.5 million to $44.3 million. The reserve requirement exemption was raised from$4.9 million to $5.0 million. The actions raised required reserves by an estimated$264 million.
91. Effective for the reserve maintenance period beginning December 31, 1998, the low reserve tranche for net transaction accounts was reduced from $47.8 million to$46.5 million. The reserve requirement exemption was raised from $4.7 million to$4.9 million. The actions raised required reserves by an estimated $104 million. 90. Effective with the reserve maintenance period beginning July 30, 1998, the required reserve system was shifted from CRR to new lagged reserve requirements (LRR) with reserve computation periods for weekly reporters starting thirty days before the corresponding reserve maintenance periods. Under the new LRR regime, the lag in counting vault cash toward required reserves was lengthened from sixteen days to thirty days for institutions reporting weekly on the FR2900. In other words, the average vault cash held during a reserve computation period would be applied toward required reserves in its corresponding reserve maintenance period. 89. Effective with the reserve maintenance period beginning January 1, 1998, the low reserve tranche for transaction accounts was reduced from$49.3 million to $47.8 million. The reserve requirement exemption was raised from$4.4 million to $4.7 million. The actions raised required reserves by an estimated$89 million.
88. Effective with the reserve maintenance period beginning December 31, 1996, the low reserve tranche for transaction accounts was reduced from $52.0 million to$49.3 million. The reserve requirement exemption was raised from $4.3 million to$4.4 million. The actions raised required reserves by an estimated $298 million. 87. Effective with the reserve maintenance period beginning December 21, 1995, the low reserve tranche for transaction accounts was reduced from$54.0 million to $52.0 million. The reserve requirement exemption was raised from$4.2 million to $4.3 million. The actions raised required reserves by an estimated$199 million.
86. Effective with the reserve maintenance period beginning December 22, 1994, the low reserve tranche for transaction accounts was raised from $51.9 million to$54.0 million. The reserve requirement exemption was also raised from $4.0 million to$4.2 million. The actions reduced required reserves by an estimated $318 million. 85. Effective with the reserve maintenance period beginning December 23, 1993, the low reserve tranche for transaction accounts was raised from$46.8 million to $51.9 million. The reserve requirement exemption was also raised from$3.8 million to $4.0 million. The actions reduced required reserves by an estimated$738 million.
84. Effective with the reserve maintenance period beginning December 24, 1992, the low reserve tranche for transaction accounts was raised from $42.2 million to$46.8 million. The reserve requirement exemption was also raised from $3.6 million to$3.8 million. The actions reduced required reserves by an estimated $699 million. 83. Effective November 12, 1992, the lag in counting vault cash toward required reserves was shortened from four weeks to two weeks for institutions reporting weekly on the FR2900, i.e. counting the average vault cash held during a reserve computation period toward required reserves in its corresponding reserve maintenance period. 82. Effective September 3, 1992, the carryover allowance for reserve balances, for institutions reporting weekly and quarterly on the FR2900, was doubled to the larger of$50,000 or 4 percent of required reserves plus required clearing balances less the institution’s required clearing balance penalty-free band.
81. Effective April 2, 1992, the 12 percent required reserve ratio against net transaction deposits above the low reserve tranche level was reduced to 10 percent. The action reduced required reserves by an estimated $8.9 billion. 80. Effective with reserve maintenance period beginning December 26, 1991, the low reserve tranche for transaction accounts was raised from$41.1 million to $42.2 million. The reserve requirement exemption was also raised from$3.4 million to $3.6 million. The actions reduced required reserves by an estimated$255 million.
79. Effective with reserve maintenance period beginning January 17, 1991, the 3 percent reserve requirement on nontransaction liabilities was reduced to zero for FR2900 quarterly reporters. The action reduced required reserves by an estimated $460 million. 78. Effective with reserve maintenance period beginning December 27, 1990, the low reserve tranche for transaction accounts was raised from$40.4 million to $41.1 million. The reserve requirement exemption was kept at$3.4 million. The action lowered required reserves by an estimated $112 million. 77. Effective December 27, 1990, the 1-1/2 percent reserve requirement on nontransaction liabilities was reduced to zero for FR2900 weekly reporters. The action lowered required reserves by an estimated$6.5 billion.
76. Effective December 13, 1990, the 3 percent reserve requirement on nontransaction liabilities was reduced to 1-1/2 percent for FR2900 weekly reporters. The action lowered required reserves by an estimated $6.7 billion. 75. Effective with reserve maintenance period beginning December 28, 1989, the low reserve tranche for transaction accounts was reduced from$41.5 million to $40.4 million. The reserve requirement exemption was kept at$3.4 million. The action raised required reserves by an estimated $190 million. 74. Effective with reserve maintenance period beginning December 29, 1988, the low reserve tranche for transaction accounts was raised from$40.5 million to $41.5 million. The reserve requirement exemption was also raised from$3.2 million to $3.4 million. The actions reduced required reserves by an estimated$210 million.
73. Effective with reserve maintenance period beginning December 31, 1987, the low reserve tranche for transaction accounts was raised from $36.7 million to$40.5 million. The reserve requirement exemption was also raised from $2.9 million to$3.2 million. The actions reduced required reserves by about $740 million. 72. Effective September 10, 1987, according to the transitional phase-in program under the Monetary Control Act, required reserves of certain nonmember depository institutions were increased about$1.70 billion.
71. Effective with reserve maintenance period beginning January 1, 1987, the low reserve tranche for transaction accounts was raised from $31.7 million to$36.7 million. The reserve requirement exemption was also raised from $2.6 million to$2.9 million. These actions reduced required reserves by about $970 million. 70. Effective September 11, 1986, according to the transitional phase-in program under the Monetary Control Act, required reserves of certain nonmember depository institutions were increased about$1.58 billion.
69. Effective April 24, 1986, money market deposit accounts (MMDA), which had previously been subject to full reserve requirements, were made subject to the transitional phase-in program of the Monetary Control Act. In addition, the order of application of the exemption applied to reservable liabilities was changed. These actions reduced required reserves by about $260 million. 68. Effective with reserve maintenance period beginning January 2, 1986, the low reserve tranche for transaction accounts was raised from$29.8 million to $31.7 million. The reserve requirement exemption was also raised from$2.4 million to $2.6 million. These actions reduced required reserves by about$340 million.
67. Effective September 12, 1985, according to the transitional phase-in program under the Monetary Control Act, required reserves of certain nonmember depository institutions were increased about $1.23 billion. 66. Effective with reserve maintenance period beginning January 3, 1985, the low reserve tranche for transaction accounts was raised from$28.9 million to $29.8 million. The reserve requirement exemption was also raised from$2.2 million to $2.4 million. These actions reduced required reserves by about$190 million.
65. Effective September 13, 1984, in conjunction with the transitional phase-in program under the Monetary Control Act, required reserves of certain nonmember depository institutions increased about $1.08 billion. 64. Effective February 2, 1984, in conjunction with the transitional phase-in program under the Monetary Control Act, required reserves of member banks were reduced about$2.0 billion.
63. Effective February 2, 1984, Regulation D was amended as follows for institutions reporting weekly on the FR2900: (1) change the reserve computation and maintenance periods from weekly to biweekly, with the former ending on Monday and the latter ending on Wednesday; (2) compute required reserves against net transaction deposits based on average deposits over the computation period ending two days before the end of the maintenance period; (3) compute required reserves against nontransaction deposits based on average deposits over a computation period ending 17 days before the beginning of the maintenance period; and (4) count the average vault cash held during a reserve computation period ending 17 days before the beginning of the reserve maintenance period toward required reserves.
62. Effective with reserve maintenance period beginning January 12, 1984, the low reserve tranche for transaction accounts at depository institutions was raised from $26.3 million to$28.9 million. Also, in accordance with the provisions of the Depository Institutions Act of 1982, the reserve requirement exemption was raised from $2.1 million to$2.2 million. These actions reduced required reserves a total of about $350 million. 61. Effective October 20, 1983, required reserves were reduced an estimated$100 million as a result of the elimination of reserve requirements on nonpersonal time deposits with maturities of 1-1/2 years to 2-1/2 years.
60. Effective September 1, 1983, in conjunction with the transitional phase-in program under the Monetary Control Act, required reserves of member banks were reduced about $2.0 billion, and required reserves of other depository institutions were increased about$0.9 billion.
59. Effective April 14, 1983, required reserves were reduced an estimated $80 million as a result of the elimination of reserve requirements on nonpersonal time deposits with maturities of 2-1/2 years to 3-1/2 years. 58. Effective March 3, 1983, in conjunction with the transitional phase-in program under the Monetary Control Act, required reserves of member banks were reduced by approximately$1.9 billion.
57. Effective January 13, 1983, the low reserve tranche for transaction accounts at depository institutions was raised from $26.0 million to$26.3 million. This action reduced required reserves approximately $32 million. 56. Effective December 23, 1982, in accordance with provisions of the Depository Institutions Act of 1982 that exempted the first$2.1 million of reservable liabilities at all depository institutions from reserve requirements, required reserves were reduced by an estimated $800 million. 55. Effective October 28, 1982, in accordance with provisions of the Depository Institutions Act of 1982, required reserves of certain former member banks were reduced by approximately$100 million.
54. Effective September 2, 1982, in conjunction with the transitional phase-in program under the Monetary Control Act, required reserves of member banks were reduced about $2.1 billion, and required reserves of other depository institutions were increased about$0.9 billion.
53. Effective August 12, 1982, in conjunction with the transitional phase-in program under the Monetary Control Act, required reserves of certain nonmember banks and foreign-related institutions increased about $140 million. 52. Effective May 13, 1982, in conjunction with the transitional phase-in program under the Monetary Control Act, required reserves of certain nonmember banks and foreign-related institutions increased about$150 million.
51. Effective March 4, 1982, in conjunction with the transitional phase-in program under the Monetary Control Act, required reserves of member banks decreased by about $2.0 billion. 50. Effective February 11, 1982, in conjunction with the transitional phase-in program under the Monetary Control Act, required reserves of certain nonmember banks and foreign-related institutions increased about$170 million.
49. Effective January 14, 1982, the low reserve tranche for transaction accounts at depository institutions was raised from $25 million to$26 million. This action reduced required reserves approximately $60 million. 48. Effective November 12, 1981, in conjunction with the transitional phase-in program under the Monetary Control Act, required reserves of certain nonmember banks and foreign-related institutions increased about$210 million.
47. Effective September 3, 1981, in conjunction with the transitional phase-in program under the Monetary Control Act, required reserves of member banks were reduced about $2.0 billion, and required reserves of other depository institutions were increased about$0.9 billion.
46. Effective August 13, 1981, in conjunction with the transitional phase-in program under the Monetary Control Act, required reserves of certain nonmember banks and foreign-related institutions increased approximately $230 million. 45. Effective May 14, 1981, in conjunction with the transitional phase-in program under the Monetary Control Act, required reserves of certain nonmember banks and foreign-related institutions increased by approximately$245 million.
44. Effective March 12, 1981, in conjunction with the transitional phase-in program under the Monetary Control Act, required reserves of small nonmember “quarterly reporters” increased about $75 million. 43. Effective February 12, 1981, in conjunction with the transitional phase-in program under the Monetary Control Act, required reserves of certain nonmember banks and foreign-related institutions increased by approximately$245 million.
42. Effective November 13, 1980, required reserves of member banks and Edge Act corporations were reduced about $4.3 billion and required reserves of other depository institutions were increased about$1.4 billion due to the implementation of the Monetary Control Act of 1980.
41. Effective July 24, 1980, the 5 percent marginal reserve requirement on managed liabilities and the 2 percent supplementary reserve requirement against large time deposits were removed. These actions reduced required reserves about $3.2 billion. 40. Effective May 29, 1980, the marginal reserve requirement was reduced from 10 percent to 5 percent and the base upon which the marginal reserve requirement was calculated was raised. This action reduced required reserves about$980 million.
39. Effective March 12, 1980, the 8 percent marginal reserve requirement was raised to 10 percent. In addition, the base upon which the marginal reserve requirement was calculated was reduced. This action increased required reserves about $1.7 billion. 38. Effective October 11, 1979, a marginal reserve requirement of 8 percent was imposed on “managed liabilities” of member banks, Edge Act corporations, and U.S. agencies and branches of foreign banks above a base average for the two weeks ending September 26, 1979. Managed liabilities included large time deposits ($100,000 and over with maturities of less than one year), repurchase agreements against U.S. government and federal agency securities, Eurodollar borrowings, and federal funds borrowings from a nonmember institution. On October 25, required reserves and reserves held by Edge Act Corporations were included in member bank reserves. (Previously reserves held by these institutions were recorded as “other deposits” by Federal Reserve Banks.) These actions raised required reserves approximately $355 and$320 million, respectively.
37. Effective November 30, 1978, the 10 percent minimum requirement on the domestic deposits of Edges was removed but Edges continued to be subject to the same reserve requirements as member banks.
36. Effective November 16, 1978, a supplementary reserve requirement of 2 percent was imposed on time deposits of $100,000 or more. This action increased required reserves approximately$3.0 billion.
35. Effective December 30, 1976, the reserve requirement against net demand deposits up to $10 million was reduced by 1/2 percentage point, and the reserve requirement against net demand deposits over$10 million was reduced by 1/4 percentage point. This action reduced required reserves by approximately $550 million. 34. Effective January 8, 1976, the reserve requirement on time deposits maturing in 180 days to 4 years was reduced from 3 percent to 2-1/2 percent. This action reduced required reserves by approximately$500 million.
33. Effective October 30, 1975, the reserve requirement against member bank time deposits with an original maturity of four years or more was reduced from 3 percent to 1 percent. This action reduced required reserves approximately $360 million. 32. Effective May 22, 1975, the reserve requirement against foreign borrowings of member banks, primarily Eurodollars, was reduced from 8 percent to 4 percent. This action reduced required reserves approximately$80 million.
31. Effective February 13, 1975, the reserve requirements against all categories of net demand deposits up to $400 million were reduced by one-half of 1 percentage point, and the reserve requirement against net demand deposits of more than$400 million was reduced 1 percentage point. This action reduced required reserves approximately $1,065 million. 30. Effective December 12, 1974, the reserve requirement against all time deposits with an original maturity of six months or longer was reduced from 5 percent to 3 percent; the reserve requirement against all time deposits with an original maturity of less than six months was increased from 5 percent to 6 percent; and the reserve requirement against net demand deposits over$400 million was reduced from 18 percent to 17-1/2 percent. In addition, the 3 percent marginal reserve requirement on large certificates of deposit with an initial maturity of less than four months was removed. These actions reduced required reserves approximately $710 million. 29. Effective September 19, 1974, the marginal reserve requirement against time deposits in denomination greater than$100,000 and more than 4-month maturity was eliminated. This action reduced required reserves approximately $510 million. 28. Effective December 27, 1973, the marginal reserve requirement against certain time deposits was reduced from 11 percent to 8 percent. This action reduced required reserves approximately$360 million.
27. Effective October 4, 1973, the marginal reserve requirement against certain time deposits was increased from 8 percent to 11 percent. This action increased required reserves approximately $465 million. 26. Effective July 19, 1973, the reserve requirement against all net demand deposits, except the first$2 million was increased 1/2 percentage point. This action increased required reserves approximately $760 million. 25. Effective July 12, 1973, reserve requirements were imposed against finance bills. This action increased required reserves approximately$90 million.
24. Effective June 21, 1973, the Board amended its Regulation D to establish a marginal reserve requirement of 8 percent against certain time deposits and to subject to the 8 percent reserve requirement certain deposits exempt from the rate limitations of the Board’s Regulation Q. In addition, reserves against certain foreign branch deposits were reduced from 10 percent to 8 percent. These changes had little effect on required reserves.
23. Effective November 9, 1972, Regulations D and J were revised to (1) adopt a system of reserve requirements against demand deposits of all member banks based on the amount of such deposits held by a member bank, and (2) to require banks–member and nonmember–to pay cash items presented by a Federal Reserve Bank on the day of presentation in funds available to the Reserve Bank on that day. These changes reduced required reserves approximately $2.5 billion, effective November 9;$1.0 billion, effective November 16; and increased required reserves $300 million, effective November 23. 22. Effective January 7, 1971, the reserve requirement on certain foreign borrowings, primarily Eurodollars, by member banks, and the sale of assets to their foreign branches was raised from 10 percent to 20 percent. This action had little effect on required reserves. 21. Effective October 1, 1970, the reserve requirement of all member banks against time deposits (other than savings deposits) in excess of$5 million was reduced from 6 percent to 5 percent. At the same time, a 5 percent reserve requirement was imposed against funds obtained by member banks through the issuance of commercial paper by their affiliates. This action reduced required reserves approximately $500 million (net). 20. Effective October 16, 1969 a 10 percent marginal reserve requirement was established on certain foreign borrowings, primarily Eurodollars, by member banks and on the sale of assets to their foreign branches. This action increased required reserves approximately$415 million.
19. Effective April 17, 1969, the reserve requirement of all member banks against net demand deposits was increased 1/2 percentage point. This action increased required reserves approximately $660 million. 18. Effective September 12, 1968, Regulation D was amended to: (1) reduce the reserve computation and maintenance periods for country banks from two weeks to one week to coincide with one-week periods for reserve city banks; (2) change contemporaneous reserve requirements to lagged reserve requirements (LRR), which required all banks to compute weekly average required reserves for the maintenance week on the basis of average daily deposits two weeks earlier; (3) count average vault cash held two weeks earlier toward the required reserves for the present week; and (4) allow either excesses or deficiencies averaging up to 2 percent of required reserves to be carried forward to the next maintenance week. 17. Effective January 18, 1968, the reserve requirement of country banks against net demand deposits in excess of$5 million was increased from 12 percent to 12-1/2 percent. This action increased required reserves approximately $190 million. 16. Effective January 11, 1968, the reserve requirement of reserve city banks against net demand deposits in excess of$5 million was increased from 16-1/2 percent to 17 percent. This action increased required reserves approximately $360 million. 15. Effective March 16, 1967, the reserve requirement of all member banks against savings deposits and the first$5 million of time deposits was reduced from 3-1/2 percent to 3 percent. This action reduced required reserves approximately $425 million. 14. Effective March 2, 1967, the reserve requirement of all member banks against savings deposits and the first$5 million of time deposits was reduced from 4 percent to 3-1/2 percent. This action reduced required reserves approximately $425 million. 13. Effective September 15, 1966, the reserve requirement of country banks against time deposits (other than savings deposits) in excess of$5 million was increased from 5 percent to 6 percent. This action increased required reserves approximately $75 million. 12. Effective September 8, 1966, the reserve requirement of reserve city banks against time deposits (other than savings deposits) in excess of$5 million was increased from 5 percent to 6 percent. This action increased required reserves approximately $370 million. 11. Effective July 21, 1966, the reserve requirement of country banks against time deposits (other than savings deposits) in excess of$5 million was increased from 4 percent to 5 percent. This action increased required reserves approximately $70 million. 10. Effective July 14, 1966, the reserve requirement of reserve city banks against time deposits (other than savings deposits) in excess of$5 million was increased from 4 percent to 5 percent. This action increased required reserves approximately $350 million. 9. Effective November 1, 1962, the reserve requirement of country banks against their time deposits was reduced from 5 percent to 4 percent. This action reduced required reserves approximately$360 million.
8. Effective October 25, 1962, the reserve requirement of reserve city banks against their time deposits was reduced from 5 percent to 4 percent. This action reduced required reserves approximately $410 million. 7. Effective July 28, 1962, the central reserve city classification was eliminated and the former central reserve city banks were reclassified as reserve city banks. 6. Effective December 1, 1960, the reserve requirement of central reserve city banks against their net demand deposits was reduced from 17-1/2 percent to 16-1/2 percent. This action reduced required reserves approximately$250 million.
5. Effective November 24, 1960, the reserve requirement of country banks against their net demand deposits was increased from 11 percent to 12 percent. This action increased required reserves approximately $380 million. 4. Effective November 24, 1960, member banks were allowed to count all vault cash as legal reserves. 3. Effective September 1, 1960, the reserve requirement of central reserve city banks against their net demand deposits was reduced from 18 percent to 17-1/2 percent. This action reduced required reserves approximately$120 million.
2. Effective January 1, 1960, the reserve computation and maintenance periods for country banks were changed from semi-monthly to biweekly. (The reserve computation and maintenance periods for central reserve city banks and reserve city banks continued to be one week; and all banks, including country banks, continued to compute and hold reserves contemporaneously.) In addition, beginning with the period ending January 13, 1960, the reserve computation and maintenance periods for all banks were made to end on Wednesday.
1. Effective December 1, 1959, member banks were allowed to count part of their vault cash as legal reserves.

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