Reserve Requirements of Depository Institutions

The Board is amending 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 will 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.