To All Depository Institutions and Others Concerned
in the Second Federal Reserve District:
The Federal Reserve Board has requested comment on proposed revisions to its 1980 interpretation of Regulation D, Reserve Requirements of Depository Institutions, setting forth 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, is owned primarily by the financial institutions with which it does business, and does not do business with the general public.
The proposed revisions would authorize the Board to determine, on a case by case basis, whether certain entities not already expressly authorized in the interpretation may become customers of bankers' banks to a limited extent.
Comments are requested no later than thirty days after publication in the Federal Register, which is expected shortly.