Release Date: April 4, 2007
For immediate release
The Federal Reserve Board on Wednesday announced final revisions to its 1980 interpretation of Regulation D (Reserve Requirements of Depository Institutions), which sets forth criteria for the "bankers' bank" exemption from reserve requirements. The revisions authorize the Board to determine, on a case by case basis, whether certain entities not already expressly authorized in the interpretation may become customers of bankers' banks to a limited extent.
A bankers' bank is an institution that is organized solely to do business with other financial institutions, is owned primarily by the financial institutions with which it does business, and does not do business with the general public.
The Board will publish the attached notice in the Federal Register shortly, and the final rule will become effective 30 days after publication.