are excess reserves a liability 
if there is interest paid on reserves or excess reserves it is a liability for the central bank because it owes money the bottom lineexcess reserves is capital held above and beyond any requirement for banks to hold a specific amount of money in reserve the federal reserve discontinued its reserve requirements in 2020 thus eliminating the concept of excess reserves central banks in other countries may still use excess reserves to ensure bank liquidity in fact the international monetary fund publishes guidance for central banks on using reserves and excess reserves in their operations demonstrating that it is still a viable tool in some economies 7