(a) Finding by Board. Upon the affirmative vote of at least five
members of the Board and after consultation with the Board of Directors
of the Federal Deposit Insurance Corporation, the Federal Home Loan
Bank Board, and the National Credit Union Administration Board, the
Board may impose a supplemental reserve requirement on every depository
institution of not more than 4 percent of its total transaction accounts.
A supplemental reserve requirement may be imposed if—
(1) the sole purpose of the requirement
is to increase the amount of reserves maintained to a level essential
for the conduct of monetary policy;
(2) the requirement is not imposed for
the purpose of reducing the cost burdens resulting from the imposition
of basic reserve requirements;
(3) such requirement is not imposed for
the purpose of increasing the amount of balances needed for clearing
purposes; and
(4) on
the date on which supplemental reserve requirements are imposed, the
total amount of basic reserve requirements is not less than the amount
of reserves that would be required on transaction accounts and nonpersonal
time deposits under the initial reserve ratios established by the
Monetary Control Act of 1980 (Pub. L. 96-221) in effect on September
1, 1980.
(b) Term.
(1) If a supplemental
reserve requirement has been imposed for a period of one year or more,
the Board shall review and determine the need for continued maintenance
of supplemental reserves and shall transmit annual reports to the
Congress regarding the need for continuing such requirement.
(2) Any supplemental reserve
requirement shall terminate at the close of the first 90-day period
after the requirement is imposed during which the average amount of
supplemental reserves required are less than the amount of reserves
which would be required if the ratios in effect on September 1, 1980,
were applied.
(c) Earnings participation account. A depository institution’s supplemental
reserve requirement shall be maintained by the Federal Reserve Banks
in an earnings participation account. Such balances shall receive
earnings to be paid by the Federal Reserve Banks during each calendar
quarter at a rate not to exceed the rate earned on the securities
portfolio of the Federal Reserve System during the previous calendar
quarter. Additional rules and regulations may be prescribed by the
Board concerning the payment of earnings on earnings participation
accounts by Federal Reserve Banks.
(d) Report to Congress. The Board shall transmit
promptly to the Congress a report stating the basis for exercising
its authority to require a supplemental reserve under this section.
(e) Reserve requirements. At present, there are no supplemental reserve requirements imposed
under this section.
