Links in “Regulation D”

We’ve already seen the impact the recent rate hike to the federal funds target rates has had on Regulation D, but what does the rate hike mean to your loan rates? Most credit unions tie their loan rates, both variable and non-variable (to some extent) to the Wall Street Journal (WSJ) Prime Rate. Since 1994, the WSJ Prime Rate has been set at 3.0% above the federal funds rate. [12/23/15]

The Federal Reserve Board is raising the top of the low-reserve tranche (the amount of net transactions subject to the 3% reserve requirement) from $103.6 million to $110.1 million for 2016.  In addition, the limit for the amount of net transactions that will be exempt from Reg. D reserve requirements will increase from $14.5 million to $15.2 million. [11/13/15]

Three regulatory agencies announced round two of EGRPRA (Economic Growth and Regulatory Paperwork Reduction Act of 1996) aka the once a decade opportunity to reduce regulatory burden on certain regulations. This new round focuses on regs associated with banking operations (Reg CC, J and D), Capital, and the Community Reinvestment Act. Comment period ends 5/14/2015. [2/13/2015]

Five bills that were important to the credit union industry and that passed the House were not brought up for a vote by the Senate before it recessed for the year. Find out why the Reg. D study, Privacy Modernization Act, FHLB membership, private deposit insurance bills, the qualified mortgage calculation bill, and the changes to the rural designation process matter to you. [12/31/14]

In a unanimous vote the House passed a bill that would call for a study to reform Regulation D. In particular, the study would look at raising or eliminating the limitation on transfers from nontransaction accounts. The bill now goes to the Senate for its consideration. [12/3/14]

The House is poised to take up a bill today that would trigger a study to reform Regulation D. Of most interest to credit unions is a consideration of either increasing or eliminating the 6-transaction cap, which is confusing for consumers and often causes unintentional overdrafts or returned checks. [12/2/14]

The FDIC is moving forward with its information collection proposal on account-based disclosures in connection with Regulations E, CC, and DD. [11/20/2014]

Finally, someone is asking the important question of whether the burdensome Regulation D is really serving a useful purpose. The House Financial Services Committee will begin markup of a bill on Tuesday that calls for a study of the effectiveness of Regulation D. The study is to look at how Reg. D has been used to conduct U.S. monetary policy, its impact on reserves at financial institutions, the impact on consumers, and what alternative approaches there may be. [7/28/14]

Doug Fecher, CEO of Wright-Patt Credit Union, will testify for CUNA today before the House Financial Services Committee about the increasing cost of regulatory compliance and will cite the more than 108 new regulations that credit unions have been subjected to since 2008. The hearing will address a number of pending bills, including the American Savings Promotion Act, which would provide parity to financial institutions that want to offer raffle-related savings accounts, and the Regulation D Study Act, which would direct the government to conduct a study about the effectiveness of Regulation D. [7/15/14]

FRB seeks comment on proposals to repeal its Regulation DD and Regulation P (transfer to CFPB) and make amendments to the identity theft red flags rule in Regulation V (Fair Credit Reporting). 60-day comment period provided. [2/13]