WASHINGTON — The Federal Reserve Board issued a notice that it has decided upon its final revisions to exemptions from reserve requirements for “bankers' banks” under Regulation D.

Consumer financial institutions are required to hold a sum in reserve under Regulation D. However, a bankers' bank–which includes corporate credit unions, according to NAFCU–is an institution organized solely to do business with other financial institutions, is owned primarily by those financial institutions, and does not do business with the general public.

The amendment would allow the Fed to determine whether certain entities qualify as a bankers' bank on a case-by-case basis.

The notice will be published in the Federal Register shortly, and the final rule will become effective 30 days after publication.

In a comment letter at the time of the proposal, NAFCU wrote, “Amending the interpretation to allow for case-by-case determinations of permissible bankers' bank customers will foster the growth and enhancement of services of corporate credit unions and other bankers' banks.” However, NAFCU encouraged the Fed to provide additional guidance on the standards being applied in making the case-by-case determinations.

NAFCU would, however, encourage the Board to provide additional guidance on the standards being applied in making its determinations as this process moves forward.

Instant Insights /

Fed Finalizes Revision to 27-Year-Old Reg D Interpretation

Related Stories

Recommended For You