Data Dictionary
Item Number 0146
MAXIMUM ALLOWABLE WAIVER (NONMEMBER TRANSITION)Call confidentiality applies to FFIEC 031/041.
| Series | Start Date | End Date | Confidential? | Reporting Forms |
|---|---|---|---|---|
| TEDS0146 | 1975-11-20 | 1980-11-05 | Yes | FR 414a |
Data Description:
The amount of penalty for deficiency in reserve requirements that would be permitted to be waived for a nonmember bank becoming a member or merging with a member would be based on its transitional reserve requirement (defined as the difference between the average reserve requirement it would have held had it been a member for the previous six months and its average vault cash holdings over that period). As a result, in the first three months the bank is a member, the Federal Reserve Bank would be authorized to waive the penalty resulting from a reserve deficiency equal to 100 per cent of this transitional reserve requirement. See "Waivers Used (Nonmember Transition) (0141)". When a member bank merges with another member bank, the reserve requirements of the resulting bank increases more than proportionately because of graduated reserve requirements on net demand deposits. In this case, the transitional reserve requirement would be equal to the difference between the average reserve requirement that would have been assessed over the past six months had the institutions been a single bank and the sum of actual average reserve requirements of each of them over the same period. In this instance, the penalty would be waived in accordance with the same schedule described in "Waivers Used (Nonmember Transition) (0141)".