Pending Federal Reserve Bank Service Threshold | R-003

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Minimum Deposit Threshold for Federal Reserve Bank Services​

Motion No.: R-003-MAR-2026
Category: Banking Reserves
Legal Basis: Federal Reserve Act (FRA) §§ 4, 5, 6, 8, 9 & 11

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WHEREAS​

The Federal Reserve Bank of Redmont is mandated under the Federal Reserve Act to supervise financial institutions and administer reserve requirement regulations necessary for the stability and orderly functioning of the Redmont financial system; and

WHEREAS​

The Federal Reserve Bank of Redmont maintains operational responsibilities relating to reserve administration, deposit facilities, and standing liquidity operations for regulated financial institutions; and

WHEREAS​

The Federal Reserve Bank of Redmont has received a growing number of registration applications from under-capitalized firms maintaining minimal levels of client deposit; and

WHEREAS​

Processing and supervising such institutions places disproportionate administrative burden on the Federal Reserve Bank of Redmont relative to the scale of their financial activity; and

WHEREAS​

The Federal Reserve Board has determined that the establishment of a minimum deposit threshold for institutions seeking direct access to Federal Reserve Bank reserve and deposit facilities will promote efficient regulatory review and responsible allocation of supervisory resources;

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NOW, THEREFORE, BE IT RESOLVED THAT​

1. The Federal Reserve Board hereby adopts Policy R-003 establishing a minimum deposit threshold governing eligibility for direct reserve and deposit services provided by the Federal Reserve Bank of Redmont.
2. Financial institutions shall maintain a minimum level of one hundred thousand Redmont Dollars (R$ 100,000) in total client deposits in order to access reserve and deposit facilities directly at the Federal Reserve Bank of Redmont.
3. Any financial institution that has been newly licensed by the Department of Commerce as a Financial Institution shall be granted a grace period of forty-five (45) calendar days from the date of licensing.
4. During this grace period, the institution shall be exempt from the reserve requirements established under Policy R-001 provided that its total client deposits remain below one hundred thousand Redmont Dollars (R$ 100,000).
5. Institutions within the grace period shall not be required to maintain statutory reserves at the Federal Reserve Bank of Redmont.
6. If, following the expiration of the forty-five (45) day grace period, a financial institution maintains total client deposits below one hundred thousand Redmont Dollars (R$ 100,000), the institution shall be required to maintain one hundred percent (100%) of its client deposits in an account held at another financial institution that satisfies the minimum deposit threshold and maintains reserve balances at the Federal Reserve Bank of Redmont.
7. Once a financial institution exceeds one hundred thousand Redmont Dollars (R$ 100,000) in total client deposits, the institution shall immediately become subject to the reserve requirements established under Policy R-001, including the requirement to maintain thirty percent (30%) of client deposits as reserves at the Federal Reserve Bank of Redmont.
8. If an institution that previously met the minimum deposit threshold subsequently falls below one hundred thousand Redmont Dollars (R$ 100,000) in total client deposits, the institution shall again become subject to the requirement to maintain one hundred percent (100%) of its deposits within another qualifying financial institution until such time as the threshold is again exceeded.

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VOTING​

This motion shall be adopted upon approval by a simple majority of the sitting members of the Federal Reserve Board.
In the event of a tie, the Secretary of the Department of Commerce shall cast the deciding vote, pursuant to the Federal Reserve Act.

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EFFECTIVE DATE​

This motion shall take effect immediately upon passage and shall apply to all financial institutions seeking registration with the Federal Reserve Bank following its adoption.