Regulation D: Reserve Requirements of Depository Institutions

The Board of Governors of the Federal Reserve System (FED) published in the Federal Register modifications to Regulation D: Reserve Requirements of Depository Institutions with immediate effect. To recall, Regulation D requires financial institutions to hold deposits with Federal Reserve Banks on deposits and certain other liabilities of banks such as time deposits, demand deposits, Eurocurrency liabilities, liabilities arising from repurchase agreements, and several others.
The now introduced amendments are minor, non-material in nature. Firstly, they concern definitions and references to „foreign, international, or supranational entities“. Specifically, three footnotes in Regulation D refer to liabilities (time deposits) held by depository institutions for specific designated entities, including „foreign, international, or supranational entities“. These entities are listed in 12 CFR 204.125, an interpretation of the regulation. Originally, this interpretation was part of former Regulation Q, but was moved to Regulation D in 1987. One reference in footnote 6 in 12 CFR 204.125 was not updated and still points to the old section, § 217.126, which the Board now corrects.
Secondly, changes are made to the heading and introductory text of the interpretation at 12 CFR 204.125 to align with previous regulatory amendments.