--Technical Amendments Effective April 1
--Comments Invited by February 4 on Proposed Clarifying Amendments
To All Depository Institutions and Others Concerned in the Second Federal Reserve District:
The following is from a statement issued by the Board of Governors of the Federal Reserve System:
The Federal Reserve Board has announced a final rule and notice of proposed rulemaking designed to simplify and update the Board's Regulation D (Reserve Requirements of Depository Institutions) and to reduce regulatory burden.
The final rule is effective April 1, 1997.
The final rule adopts an earlier proposed rule as it was proposed and makes certain technical changes. In general, the final rule deletes transitional rules relating to the expansion of reserve requirements to nonmember depository institutions, the authorization of NOW accounts nationwide, and other matters that no longer have a significant effect. The final rule also eliminates the transition rules for de novo institutions and separate transition rules for "dissimilar" mergers.
The proposed rule requests comment on a clarification of the definition of "savings deposit," consistent with comments the Board received on the earlier proposal, and conforming changes to the definition of "transaction account." The proposed definitions also incorporate existing staff interpretations. No substantive change is intended.
Comment on the proposal is requested by February 4, 1997.
The rules are in accordance with the Board's policy of regular review of its regulations and the Board's review of its regulations under section 303 of the Riegle Community Development and Regulatory Improvement Act.
The text of the Board's proposal, as published in the Federal Register of December 31, 1996 is available as a (pdf) file. Comments thereon should be submitted by February 4, 1997 and may be sent to the Board, as specified in the notice, or to this Bank's Compliance Examinations Department.
In addition, the amendments, effective April 1, 1997, to Regulation D, also as published in the Federal Register of December 31, 1996 is available as a (pdf) file. The amendments were originally proposed in June 1996 and were contained in our Circular No. 10859, dated July 1, 1996.
