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 requested comment on a proposal to amend 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 reserves on a nationwide basis in a single account at one Reserve Bank or to continue to have separate accounts on a same-state/same-District basis as they do today.
Comment is requested by September 12, 1997.
The amendments would also update and clarify the pass-through account rules in Regulation D for all institutions. These amendments would facilitate interstate banking and eliminate certain restrictions applicable to pass-through accounts.
We would note that the Federal Reserve Act requires each member bank to hold reserves directly with the Reserve Bank of its District and does not permit member banks to hold reserves through a pass-through correspondent.
The Board's proposal, as published in the Federal Register of August 8, is available as a file (pdf - 75kb). Comments should be submitted to the Board by September 12, 1997, as specified in the notice.