What is the new calculation for earnings credits?
Earnings credits are calculated using the institution’s average clearing balance maintained during a reserve maintenance period, which includes amounts held up to the top of the clearing balance band, and the earnings credits rate for a reserve maintenance period. The clearing balance maintained, also known as eligible clearing balance, is no longer be adjusted for the Federal Reserve Bank’s imputed reserve requirement or the institution’s marginal reserve requirement. For more detailed information on the new calculation for earnings credits, please see the Federal Reserve Financial Services website.
