The bottom of the penalty-free band is equal to the reserve balance requirement minus a dollar amount prescribed by the Board, not to fall below zero.
For a depository institution that maintains balances directly with the Federal Reserve, the dollar amount used to create the bottom of the penalty-free band is equal to the greater of $50,000 or 10 percent of the depository institution's reserve balance requirement.
For a pass-through correspondent, the dollar amount used to establish the bottom of the penalty-free band will be set as an amount that is equal to the greater of $50,000 or 10 percent of the aggregate reserve balance requirement of the correspondent (if any) and all of its respondents.