Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Fed Reg D changes open access to EBAs
WASHINGTON (6/3/09)—The Federal Reserve Board has amended Regulation D, which addresses reserve and reporting requirements for credit unions, banks and thrifts, by directing federal reserve banks to pay interest on certain balances held by or on behalf of depository institutions and allowing for the establishment of excess balance accounts at reserve banks. Under the rule, required reserve balances that are maintained by depository institutions that are not eligible to earn interest themselves on behalf of an eligible institution (a respondent), will accrue interest--which must then be passed back to the respondent. However, excess balances that are maintained by "ineligible" correspondents on behalf of a respondent will not earn interest. Once effective, the changes to Regulation D will also allow depository institutions, including credit unions, to establish limited-purpose “excess balance accounts." Such accounts will allow depository institutions to earn interest on excess balances held at reserve banks, including those institutions which maintain excess balances via an "ineligible" correspondent. The rule will become effective on July 2, 2009. The Fed has said that it plans to reexamine the continuing need for EBAs once financial markets have stabilized. For more on the final rule, use the resource link below.


RSS





print
News Now LiveWire
Registration lottery for #CreditUnion #CherryBlossom Ten Mile Run opens Monday, Dec. 1 http://t.co/AGkKPof5Fy. Race is April 12
22 hours ago
The turkey hasn't even been served and #creditunions are already making plans for #GivingTuesday
1 Day ago
.@bankofamerica's $16.65 billion 'toxic mortgage' settlement finalized http://t.co/BIq1QyImXG
1 Day ago
RT @CUNA: #NussleReport: ICYMI: Revised RBC proposal in January w/a 90-day comment period #Fix RBC http://t.co/T4JcvWBDse
1 Day ago
.@TheNCUA release on Nov. prohibition orders out already. Here: http://t.co/YkA1QIYbYa
1 Day ago