Regulatory News

Accounts, Loans & Reserves

 
 
Date Title Category
April 12, 2012 Regulation D

A new final rule, published today in the Federal Register, simplifies the administration of reserve requirements. Two of the changes, the discontinuation of certain as-of adjustments and the elimination of the contractual clearing balance program, are effective July 12, 2012. Two others, the creation of a common two-week maintenance period and the replacement of carryover and routine penalty waivers with a penalty-free reserve balance range, are effective January 24, 2013.

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Date Title Category
May 10, 2010 Term Deposit Facility

Over the coming months, the Federal Reserve will conduct up to five small-value offerings of term deposits under the Term Deposit Facility. The first of these offerings could be as early as mid-June. These small-value offerings are designed to allow participants to familiarize themselves with term deposit procedures. The term deposits offered will be simple fixed-rate instruments with maturities of 84 days or less, offered primarily, though not exclusively, through competitive single-price auctions.

The Federal Reserve approved amendments to Reg. D to allow Reserve Banks to offer term deposits. These amendments will take effect 30 days from May 5, the date of their publication in the Federal Register.

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February 19, 2010 Primary Credit

Effective today, the discount rate increases from 0.5 to 0.75 percent. Effective March 18, the typical maximum maturity for primary credit loans will shorten to overnight. The minimum bid rate for the final TAF auction on March 8 will be 0.5 percent, up from 0.25 percent.

 

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Date Title Category
December 28, 2009 Regulation D

The Federal Reserve has proposed auctioning interest-bearing term deposits to eligible institutions. Public comments on the proposal are due February 1, 2010.

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October 8, 2009 Term Asset-Backed Securities Loan Facility

Proposed changes to the Term Asset-Backed Securities Loan Facility (TALF) would establish criteria to determine which credit rating agencies will be eligible to rate asset-backed securities (ABS) pledged as collateral at the TALF and require an additional formal ABS risk assessment by the New York Fed. Public comments on the proposed changes are due November 9, 2009.

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September 24, 2009 Credit Facilities

The Term Auction Facility (TAF) and Term Securities Lending Facility (TSLF) will gradually shrink in scope during the coming months. Consistent with the Federal Reserve's stated goal of gradually scaling back the facilities as financial market conditions improve, the TAF will continue to offer $75 billion per 28-day auction through January, but will likely reduce that volume in early 2010. The TAF's 84-day offerings and TSLF offerings will each shrink to $50 billion in October and $25 billion through the end of the year.

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August 19, 2009 Lending Program Enhancements

On October 19, collateral pledged to secure discount window and TAF loans will be subject to a new schedule of margins.

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August 17, 2009 Term Asset-Backed Securities Loan Facility

On October 19, collateral pledged to secure discount window and TAF loans will be subject to a new schedule of margins.

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July 24, 2009 Term Auction Facility

The amount of TAF credit offered at each of two August auctions will be reduced to $100 billion.

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June 25, 2009 Liquidity Programs

In response to market conditions, the Federal Reserve has extended some of its liquidity programs through February 1, 2010 and either narrowed or suspended others.

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May 20, 2009 Final Amendments to Reg. D and Reg. I

Pending changes to Reg. D and Reg. I will make it easier for community banks using correspondent banks to receive interest on excess balances held at Federal Reserve Banks. These changes and others will take effect 30 days after their publication in the Federal Register. Excess balance accounts will be available for the reserve maintenance period beginning July 2, 2009.

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May 19, 2009 New TALF Eligibility for Some Commercial Mortgage-Backed Securities

Certain kinds of high-quality commercial mortgage-backed securities issued before January 1, 2009 (Legacy CMBS) will become eligible collateral under the Federal Reserve’s Term Asset-Backed Securities Loan Facility (TALF). The initial subscription date for TALF loans collateralized by newly issued CMBS will be June 16, 2009, and the subscription dates for TALF loans collateralized by Legacy CMBS will follow and be announced in advance.

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April 21, 2009 New Interest Rates for Some Asset-Backed Loans

Two new interest rates will apply to certain loans extended under the Federal Reserve's Term Asset-Backed Securities Loan Facility (TALF) with weighted average lives to maturity of less than two years. The new rates, along with some technical clarifications, will take effect for the May TALF funding.

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March 19, 2009 Newly Eligible Asset-Backed Collateral

The Federal Reserve expanded the set of eligible collateral under the Term Asset-Backed Securities Loan Facility (TALF) to include four additional categories of asset-backed securities. The new categories of collateral will be eligible for the April TALF funding.

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March 18, 2009 Balance Sheet Expansion

The Federal Reserve will purchase up to an additional $750 billion this year of GSE mortgage-backed securities and up to an additional $100 billion of GSE debt this year. The Federal Reserve will also purchase up to $300 billion of longer-term Treasury securities over the next six months.

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February 10, 2009 Term Asset-Backed Securities Loan Facility

The Federal Reserve is prepared to undertake a substantial expansion of the TALF.

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February 6, 2009 Term Asset-Backed Securities Loan Facility

The Federal Reserve Board released additional terms and conditions of the TALF.

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January 29, 2009 Excess Balance Accounts

Comments are due March 2 on a proposal to allow particular institutions to earn interest at the excess-balance rate in Reserve Bank accounts managed by a correspondent or other agent.

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January 7, 2008 Money Market Investor Funding

The Federal Reserve expanded eligibility to participate in the Money Market Investor Funding Facility and made adjustments so that the program can remain a viable source of backup liquidity even at low market interest rates.

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Date Title Category
December 30, 2008 Mortgage-Backed Securities Purchase Program

The Federal Reserve released details about its program, expected to begin in January, to purchase mortgage-backed securities.

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December 19, 2008 Lending

The Federal Reserve Board issued revised terms and conditions and questions and answers detailing operational aspects of the Term Asset-Backed Securities Loan Facility.

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December 19, 2008 Payments System Risk

The Federal Reserve Board adopted revisions to its Payment System Risk policy designed to improve intraday liquidity management and payment flows for the banking system, while also helping to mitigate the credit exposures of the Federal Reserve Banks from daylight overdrafts.

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December 19, 2008 Payments System Risk

The Federal Reserve Board is dropping its proposal to change the daylight overdraft posting rules at least for the time being. Commercial and government ACH debit transfers processed by FedACH will continue to be posted at 11:00 a.m. ET, and commercial and government ACH credit transfers will continue to be posted at 8:30 a.m. ET.

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December 17, 2008 Reserve Requirements

The Board issued a technical note about calculating interest on required reserves because of the change from a target federal funds rate to a target range.

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December 17, 2008 Reserve Requirements

The Board issued a technical note about calculating interest on required reserves because of the change from a target federal funds rate to a target range.

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December 2, 2008 Liquidity Facilities

The Federal Reserve is extending the Primary Dealer Credit Facility, the Asset-Backed Commercial Paper Money Market Fund Liquidity Facility, and the Term Securities Lending Facility through the end of April.

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November 25, 2008 Credit Markets

The Federal Reserve is initiating a program to purchase direct obligations of housing-related government-sponsored enterprises and mortgage-backed securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae.

 

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November 5, 2008 Reserve Requirements

The Federal Reserve is changing the formulas for interest paid on required and excess reserve balances.

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October 29, 2008 Reciprocal Currency Arrangements

The Federal Reserve approved temporary liquidity swap facilities with the central banks of Brazil, Mexico, Korea, and Singapore.

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October 28, 2008 Reciprocal Currency Arrangements

The Federal Open Market Committee authorized a temporary swap facility with the Reserve Bank of New Zealand.

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October 22, 2008 Reserve Accounts

Effective tomorrow, the rate the Federal Reserve pays depository institutions on excess balances will equal the lowest FOMC target rate in effect during the reserve maintenance period less 35 basis points.

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October 21, 2008 Money Market Investor Funding

The Federal Reserve is creating a Money Market Investor Funding Facility to support a private-sector initiative designed to provide liquidity to U.S. money market investors.

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October 14, 2008 Reciprocal Currency Arrangements

The FOMC authorized an increase in the size of its temporary swap line with the Bank of Japan.

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October 14, 2008 Commercial Paper Funding

The Federal Reserve will begin funding purchases of commercial paper on October 27.

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October 14, 2008 Credit Markets

The Treasury announced a voluntary capital purchase program and has authorized the FDIC to guarantee senior debt of all FDIC-insured institutions and their holding companies, as well as deposits in non-interest bearing deposit transaction accounts.

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October 13, 2008 Reciprocal Currency Arrangements

The Federal Reserve and other central banks adopted further measures to improve liquidity in short-term U.S. dollar funding markets.

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October 8, 2008 Regulatory News Discount Loans

With the approval of the Federal Reserve Board and as part of coordinated actions among several central banks, this Reserve Bank reduced its primary credit rate to 1-3/4 percent.

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October 7, 2008 Regulatory News Loans

The Federal Reserve Board announced the creation of a Commercial Paper Funding Facility to complement the Federal Reserve's existing credit facilities to help provide liquidity to term funding markets.

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October 6, 2008 Regulatory News Reserves and Lending

The Federal Reserve will begin paying interest on required and excess reserve balances. It is also substantially increasing the size of the Term Auction Facility auctions and consulting market participants on ways to provide additional support for term unsecured funding markets.

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September 29, 2008 U.S. Dollar Liquidity

In response to continued strains in short-term funding markets, the Federal Reserve and other central banks announced further coordinated actions to expand significantly the capacity to provide U.S. dollar liquidity.

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September 29, 2008 Regulatory News Reserve Requirements

The first $10.3 million of net transaction accounts will be subject to a zero-percent reserve requirement in 2009; a 10-percent reserve ratio will apply to net transaction accounts in excess of $44.4 million; and a 3-percent ratio in between.

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September 19, 2008 Regulatory News Market Liquidity

The Federal Reserve will extend non-recourse loans at the primary credit rate to U.S. depository institutions and bank holding companies to finance the purchases of high-quality asset-backed commercial paper from money market mutual funds and will purchase from primary dealers short-term debt obligations of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.

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September 24, 2008 Regulatory News Reciprocal Currency Arrangements

The Federal Reserve has established new swap facilities with Australian and Scandinavian central banks.

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September 18, 2008 Regulatory News Reciprocal Currency ArrangementsThe Federal Reserve and several foreign central banks have enlarged their currency swap lines.

 

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July 30, 2008 Regulatory News Discount Window

The Federal Reserve will add 84-day loans to its term auction facility without discontinuing the 28-day loan auctions, and will take other steps to make its liquidity facilities more effective. The European Central Bank and the Swiss National Bank will follow suit.

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September 14, 2008 Market Liquidity - Regulatory News

The Federal Reserve expanded collateral eligible for the Primary Dealer Credit Facility and the Term Securities Lending Facility; increased the frequency and size of schedule 2 TSLF auctions; and temporarily eased certain affiliate lending restrictions.

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