Reserves Administration

As announced (Off-site) on March 15, 2020, the Board reduced reserve requirement ratios to zero percent effective March 26, 2020. This action eliminated reserve requirements for all depository institutions. For more information on this change, visit the Reserves Central-Reserve Account Administration Application Frequently Asked Questions page.

As outlined in Regulation D, many depository institutions are eligible to receive interest on their reserve account balances. The St. Louis Fed’s Reserve Administration staff monitor institutions’ reserve accounts, excess balance accounts (EBAs), and term deposit facility offerings.

Reserves Administration Documents:

• The Reserves Central site provides resources and tools to help financial institutions manage their accounts.
• The Reserve Maintenance Manual (PDF) provides information regarding account maintenance for depository institutions that file the Federal Reserve (FR) 2900 form.
• The Account Management Guide is a comprehensive reference guide for financial institutions that manage reserve accounts. It outlines the basics of the Federal Reserve Bank account structure, concepts of reserve maintenance, terminology, tools and other specific information related to the ongoing administration of reserve accounts.
• Reserve Administration press releases

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. Visit the Term Deposit Facility Resource Center to learn more.

Excess Balance Accounts

An excess balance account is an account at a Federal Reserve Bank established for one or more institutions (participants) that are eligible to earn interest on balances held at the Federal Reserve Banks. Each participant must authorize another institution (an agent) to manage the excess balance account on its behalf pursuant to an Excess Balance Account Agreement. The Federal Reserve Banks pay interest on the balance in the excess balance account over the reserve maintenance period and the agent disburses that interest to each participant in accordance with the instructions of the participant. Only excess balances may be placed in an excess balance account; the account balance cannot be used to satisfy reserve balance requirements.

Regulation D, Reserve Requirements of Depository Institutions, was amended to authorize the establishment of excess balance accounts, effective July 2, 2009. For more information, read the Federal Reserve Board press release and Federal Register notice.