Below is from the fed document Keen footnoted.
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13. The reserve requirement system in the United States
13.1 Reservable liabilities: RRRs are based on types and sizes of deposits at depository institutions. Currently only deposits in net transaction accounts are subject to positive required RRRs (see footnote 1 to table 12 in the appendix for definition of net transactions). RRRs vary with the average amount of a depository institution's daily net transaction deposits in a MP. Non-personal time and savings deposits, and net Eurocurrency liabilities are currently subject to zero RRR.
13.2 Required reserve ratios (RRRs): Progressive RRRs are applied to the averages of net transaction deposits (NT) in the MP.
0% for NT up to reserve exemption level ($8.5 million for 2007);
3% for NT above reserve exempt level up to low reserve tranche level
($45.8 million for 2007);
10% for NT above low reserve tranche level.37
13.3 Reserve computation period (CP): Each CP spans 14 days for weekly deposit reporters, beginning every other Tuesday and ending on the second Monday. The CP for quarterly deposit reporters consists of 7 days, beginning on the third Tuesday of March, June, September, and December and ending on the following Monday.
13.4 Reserve maintenance period (MP): For weekly reporters, each MP comprises 14 days with a lag of 30 days from the associated CP, beginning on the fifth Thursday after the start of the associated CP and ending on the second Wednesday. For quarterly reporters, the MP comprises 7 days. The required reserves for each CP have to be maintained for 12-14 consecutive MPs, called "a reserve maintenance cycle", until the first MP associated with the CP in the next quarter begins. Thus, the first MP begins also with a lag of 30 days from the associated CP, beginning on the fifth Thursday after the start of the associated CP and ending on the following Wednesday.
13.5 Types of reserve requirements: LRR is employed, with a lag of 30 days from the start of a reserve computation period to the start of the associated maintenance period.
13.6 Calculation of required reserves: Required reserves are equal to the sum of the products of each of the three RRRs times the corresponding tier of the average of a depository institution's daily net transaction deposit balances in a CP. For example, a depository institution with an average of daily net transaction deposits of $100 million in a CP has required reserves equal to $6.539 million as calculated below:
Required reserves = ($8.5 million x 0.0) + [($45.8 million - $8.5 million) x 0.03]
+ [($100.0 million - $45.8 million) x 0.10].
13.7 Eligible assets for satisfying RR: A depository institution can apply its VC to meet up to 100 percent of its required reserves. A depository institution's remaining required reserves after applying its VC, called its reserve balance requirement, must be satisfied by its reserve balance at the central bank.
13.8 Carry-over of reserve balances: A depository institution with a reserve balance requirement is allowed to carry over some excess reserve or deficiency of required reserve balances in one MP to be used or made up only in the following MP. The allowable carry-over of reserve balances is limited to the greater of $50,000 or 4 percent of the total requirement (reserve requirement plus required clearing balance, if any), less clearing balance allowance, if applicable.
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