On the other hand, depositories
provide a smaller proportion of home purchase and refinancing loans to minorities than do independent mortgage companies.
The deductible is based on the size of the borrower and reflects the presumption that larger depositories
have greater access to market sources of funds and therefore should have less need for seasonal credit.
Affiliates of depositories
also purchased a significant proportion of lower-income mortgages for their risk portfolios.
The cut in requirements reduced required balances at Reserve Banks for many depositories
to below the balances needed for precautionary purposes, and the federal funds rate consequently became very volatile.
If required reserve and required clearing balances dropped to very low levels, there would be increased risks of overnight overdrafts on the accounts of depositories
in Reserve Banks.
serve as custodians and settlement agents for financial transactions.
The success of the immobilization within depositories
of corporate debt, with approximately 75 percent of all outstanding corporate debt (and much higher percentages of recent issues) held in depositories
, makes global book-entry the logical choice.
Payment of explicit interest on contractual clearing balances could result in an increase in the level of these balances; some depositories
are currently constrained in the amount of such credit-earning balances they can hold because of their limited use of Federal Reserve services.
The Central Depositories
of Bulgaria and Romania have signed a cooperation agreement, thus establishing a direct link with each other.
At present, the National Bank of the Kyrgyz Republic functions as a depository for state securities; four licensed depositories
work with corporate securities.
Addison-based Dillon Gage, which runs private precious metal depositories
in Delaware and Toronto, noted that CME membership would give the Texas depository a "certain reputational weight" and predicted that the CME would likely waive its geographic restrictions "for a state-run depository.
, the Reserve Banks provide payment-related services--handling the government checking account and disbursements and collections.