Oct. 29, 2012 – The second phase in a program to simplify the administration of Regulation D reserving requirements will be delayed five months, the Federal Reserve Board announced Friday.
The Fed Board issued a final rule this April with the goal of easing administrative and operational costs for depository institutions in managing their Reg D reserving requirements. The first phase, a rule ending clearing balance requirements and as-of adjustments to deposit report revisions, took effect in July.
A second phase was to take effect Jan. 24. That phase will introduce a common two-week maintenance period and a penalty-free band around reserve balance requirements to eliminate carryover and routine penalty waivers.
The five-months delay is to allow time for further development and testing of automated systems necessary to support the implementation of certain provisions, the Fed said. NAFCU, in an official comment letter, supported the changes. It also called anew for relief from the six-per-month limit on convenience transfers.