Removing reserves from the calculation of the ratio

That said, there is a problematic link between reserves and a separate regulatory requirement — that banks have a minimum ratio of loss-absorbing equity to total assets, including cash. When the Fed seeks to stimulate the economy by increasing reserves, the added cash can cause banks to inadvertently bump into this minimum leverage ratio, constraining their ability to lend and undermining the stimulus. This could be fixed by removing reserves from the calculation of the ratio — with an upward adjustment in the required ratio (excluding reserves) to ensure that the change didn’t weaken the system by reducing bank capital requirements.

https://www.bloomberg.com/opinion/articles/2019-10-23/the-longer-term-lessons-of-the-repo-market-turmoil

https://bpi.com/excluding-reserves-from-the-repo-market-would-make-repo-market-volatility-worse/