Reserve requirements currently are assessed on the depository institution's net transaction accounts
(mostly checking accounts).
Among such products, general purpose reloadable (GPR) prepaid cards may be able to address the issues more effectively than alternative checking accounts offered by depository institutions or transaction accounts
offered by nondepository institutions.
According to the firm, Deposit Reclassification, a retail sweep program, is a Federal Reserve Board acknowledged practice that reduces reserve requirements by reclassifying transaction accounts
as non-transaction accounts
, which are not subject to reserve requirements.
Global Banking News-November 12, 2012--Australian banks incentivise daily transaction accounts
to attract customers(C)2012 ENPublishing - http://www.
4 million in net transaction accounts
will be exempt from reserve requirements.
Bank Windhoek recently increased the life cover for clients with EasySave, Vibe or Transaction accounts
The Dodd-Frank Act subsection's title says it all: "Interest-Bearing Transaction Accounts
Allowing the TAG program to expire in this environment could cause a number of community banks--already under stress--to experience deposit withdrawals from their large transaction accounts
and would risk needless liquidity failures.
The Federal Deposit Insurance Corporation announced a new program designed to strengthen confidence and encourage liquidity in the banking system by guaranteeing newly issued senior unsecured debt of banks, thrifts and certain holding companies, and by providing full coverage of non-interest-bearing deposit transaction accounts
, regardless of dollar amount.
The annual indexing of the low reserve tranche and the reserve requirement exemption amount is based on growth in net transaction accounts
and total reservable liabilities, respectively, at all depository institutions between June 30, 2004, and June 30, 2005.
Unlimited deposit protection for transaction accounts
was originally introduced to stabilize deposit bases as the banking system came under extreme stress during the financial crisis in late 2008.
George branded savings and transaction accounts
over six years.