Reserve Requirements and Federal Reserve Update
The Federal Reserve Board (Board) has delayed the implementation of the second phase of its program to simplify reserve requirement administration until June 27, 2013. The delay aims to provide further development and testing of automated systems to ensure a smooth transition for affected depository institutions. The Credit Union National Association (CUNA) has supported a staggered timeframe to provide adequate time for affected credit unions to implement these changes. Also, the Board announced the annual indexing of the reserve requirement exemption amount and the low reserve tranche for 2013, which apply to depository institutions, including credit unions. Regarding payments services that the Federal Reserve Banks provide to depository institutions, the Board recently announced the updated fee schedules that will be effective on January 2, 2013.