Regulation D
November 21, 1997
Circular No. 10994

Pass-Through Reserve Accounts

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

The following is from a statement by the Board of Governors of the Federal Reserve System:

The Federal Reserve Board has announced amendments to its Regulation D (Reserve Requirements of Depository Institutions) to allow U.S. branches and agencies of foreign banks and Edge and Agreement corporations to choose whether to aggregate reserve balances on a nationwide basis with a single pass-through correspondent or to continue to maintain reserve balances on a same-state/same-District basis as they do today.

The amendments are effective January 1, 1998.

The amendments also update and clarify the pass-through rules in Regulation D for all institutions. These amendments will facilitate interstate banking and branching and eliminate certain restrictions applicable to pass-through arrangements.

A copy of the amendments, effective January 1, 1998, as published in the Federal Register of November 5 is available as a file (pdf - 39kb). Questions on this matter may be directed to the persons specified in the notice or, at this Bank, to Richard Gelson Vice President.