FED Revision to Reserve Requirements Impacts FR Y-9C and Call Reports
FED announced an interim final rule to amend Regulation D on reserve requirements of depository institutions due to the financial disruptions related to COVID-19 outbreak. FED is amending Regulation D to delete the six-per-month limit on convenient transfers from the "savings deposit" definition. The amendments are intended to allow depository institution customers more convenient access to their funds and to simplify account administration for depository institutions. FED is also making temporary revisions to the financial statements for holding companies (FR Y-9 reports) and FFIEC call reports, among others, to reflect the amendments to Regulation D. This interim rule became effective on April 24, 2020 while comments on the rule must be received by June 29, 2020.
This interim final rule includes deletion of provisions in the “savings deposit” definition that require depository institutions to either prevent transfers and withdrawals in excess of the limit or to monitor savings deposits ex-post for violations of the limit. The rule also makes conforming changes to the other definitions in Regulation D that refer to “savings deposit” as necessary. The regulatory limit in Regulation D was the basis for distinguishing between reservable "transaction accounts" and non-reservable "savings deposits." The recent action of FED reducing all reserve requirement ratios to zero has rendered this regulatory distinction unnecessary.
The interim final rule allows depository institutions to immediately suspend enforcement of the six transfer limit and to allow their customers to make an unlimited number of convenient transfers and withdrawals from their savings deposits. The rule permits, but does not require, depository institutions to suspend enforcement of the six transfer limit. It also does not require any changes to the deposit reporting practices of depository institutions. The changes to the numeric limits on certain kinds of transfers and withdrawals that may be made each month from accounts characterized as “savings deposits” were applicable on April 23, 2020.
FED has temporarily revised the instructions for FR Y-9C reports to accurately reflect aspects of the interim final rule. The agencies have determined that certain revisions should be made to the affected FFIEC reports as a result of this rule making. The changes should be minimal and result in a zero net change in hourly burden. Submissions will, however, be made by the agencies to OMB.
Related Links
Comment Due Date: June 29, 2020
Effective Date: April 24, 2020
Keywords: Americas, US, Banking, COVID-19, Reporting, Regulation D, Reserve Requirement, FR Y-9C, Call Reports, FFIEC, FED
Featured Experts
Laurent Birade
Advises U.S. and Canadian financial institutions on risk and finance integration, CCAR/DFAST stress testing, IFRS9 and CECL credit loss reserving, and credit risk practices.
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Related Articles
EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
EC Mandates ESAs to Propose Amendments to SFDR Technical Standards
The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.
EBA Examines Supervisory Practices, Issues Deposits Reporting Template
The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),
US Agency Publications Address Basel, Reporting, and CECL Developments
The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances
SEC Extends Comment Period on Climate Risk Disclosures
The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.
APRA Reduces Committed Liquidity Facility, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility and issued an update on the operational preparedness for zero and negative market interest rates.
CMF Consults on Basel Rules, Presents Roadmap to Address Climate Risks
The Commission for the Financial Market (CMF) in Chile published capital adequacy ratios (as of February 2022, January 2022, and December 2021) for 17 banks and for the banking system.
PRA Issues Statement on NPEs and Policy on Trading Activity Wind-Down
The Prudential Regulation Authority (PRA) issued a statement on the European Banking Authority (EBA) guidelines on management of non-performing exposures (NPEs) and forborne exposures.
EBA Updates Standards for 2023 Benchmarking of Internal Approaches
The European Banking Authority (EBA) updated the implementing technical standards that specify the data collection for the 2023 supervisory benchmarking exercise in relation to the internal approaches used in market risk, credit risk, and IFRS 9 accounting.
EIOPA Responds to Stakeholder Views on Blockchain in Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published a feedback statement on the responses received to the consultation on blockchain and smart contracts in insurance.
