Financial institution would like to start offering a premium interest bearing commercial checking account. The powers that be would like to have the reserve requirement on these particular accounts set to 5% rather than the usual 10% that is used. Is this ok to do? Or do they have to follow the reserve requirements table on the FRB web page indicating the different percentages of requirements for the net transaction accounts? My thought is that if our net transaction accounts is more than $124.2MM (according to the chart on the FRB website) and we would need to reserve 10% across the board, not just by product type, right?

There is no wiggle room on the 10% once you reach the appropriate asset threshold for transaction accounts.