April 16, 2007
Board Announces Final Revisions to its 1980 Reg D Interpretation
In a press release, the Board announced final revisions to its 1980 interpretation of Regulation D that sets the criteria for the "bankers' bank" exemption from reserve requirements. A bankers' bank is an institution that is organized solely to do business with other financial institutions. Financial institutions that do business with the company are its primary owners, and bankers' banks do not do business with the general public. Under the revision, the Board has decided to determine on a case-by-case basis if a bankers' bank may continue to be exempt from reserve requirements when it serves or is owned by certain non-depository institution customers. The Board noted that it did not anticipate allowing a bankers' bank to serve the public. The rule will take effect 30 days after publication in the Federal Register.