WASHINGTON (MNI) – The following is the text of a statement by the
Federal Reserve Board Friday:
The Federal Reserve Board on Friday announced a five-month delay in
the implementation of the second phase of its program to simplify the
administration of reserve requirements. The delay will allow for further
development and testing of automated systems to ensure a smooth
transition for affected institutions.
The Board issued a final rule on April 4, 2012, amending its
Regulation D to simplify the reserve administration program in two
phases. The first phase, which took effect on July 12, 2012,
discontinued as-of adjustments related to deposit report revisions and
eliminated clearing balance requirements.
The second phase of the amendments 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
second phase of amendments was originally scheduled to take effect on
January 24, 2013. The new effective date is June 27, 2013.
The purpose of the simplification is to reduce administrative and
operational costs for depository institutions, the Federal Reserve
Board, and Federal Reserve Banks. The project does not affect the stance
of monetary policy.
** MNI Washington Bureau: 202-371-2121 **
[TOPICS: M$U$$$,MMUFE$,MGU$$$,MFU$$$,MK$$$$]