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

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

The amendment would allow the Fed to determine whether certainentities 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 afterpublication.

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

NAFCU would, however, encourage the Board to provide additionalguidance on the standards being applied in making itsdeterminations as this process moves forward.