With the lagged reserve accounting system there is a 16-day lag between the reserve computation and reserve maintenance periods for non personal time deposits and other non transaction liabilities.

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In the lagged reserve accounting system, there is indeed a 16-day lag between the reserve computation period and the reserve maintenance period for non-personal time deposits and other non-transaction liabilities, allowing banks to calculate their required reserves based on their deposits from two weeks prior.

With the Lagged Reserve Accounting System There Is a 16-Day