Data Dictionary
Item Number J891
OTHER LIABILITIES: EARNINGS CREDIT DUE TO DEPOSITORY INSTITUTIONSCall confidentiality applies to FFIEC 031/041.
| Series | Start Date | End Date | Confidential? | Reporting Forms |
|---|---|---|---|---|
| FRBSJ891 | 1989-12-31 | 9999-12-31 | Yes | FR 34 |
Data Description:
Earnings credits have been authorized by the Board on clearing balances that are maintained by depository institutions with Reserve Banks. The credits can be used only to offset charges an institution incurs in its use of System services. This account represents a liability, the balance of which consists of amounts earned by depository institutions for application against future billings. At a minimum, this account is credited on the last day of each month to reflect earnings credits which have been earned during the month and the offsetting entry is made to cost of earnings credits. Earnings credits are earned at the time balances are held, even though the specific liability is not determined until the account position is finalized. The Reserve Bank may maintain separate subsidiary accounts to record the accrual and to record earnings credits that are eligible for use against charges for use of Federal Reserve services. When earnings credits are used or expire unused, the account is debited. The amount of used credits is credited to income from services and expired amounts to cost of earnings credits. Earnings credits are deemed expired if, during the 52 week period after they have been granted, they have not been applied to billings or if an institution having unused credits is liquidated.