The FRB requested public comment on proposed changes to Regulations D and I. Only two of the proposals are intended to represent substantive changes to existing law, while the others are principally clarifications. The first proposed substantive change would amend Regulation D to implement Section 603 of the Financial Services Regulatory Relief Act of 2006 by authorizing member banks of the Federal Reserve System to enter into pass-through arrangements. Previously, member banks were statutorily prohibited from passing required reserve balances through a correspondent institution. The second proposed substantive change would eliminate the provision in the “savings deposit” definition of Regulation D limiting certain kinds of transfers from savings deposits to not more than 3 per month. As a result, all transfers and withdrawals from a savings deposit would be subject to the same limitation of not more than 6 per month. The remaining proposed changes, intended as clarifications, would reorganize the provisions relating to deposit reporting and the calculation and maintenance of required reserves, clarify the definitions of “time deposit” and “vault cash,” and make other minor editorial changes.The public comment period ends 45 days after publication of the proposal in the Federal Register, which is expected shortly. Click here for a copy of the proposal.
Alert February 12, 2008