Financial Update (January-March 2000)


Cover Story

Technology Brings Regulatory Challenges

Golden Dollar

New $5s and $10s

New Law Expands Banks' Activities


Did You Know?

Data Bank

The Docket

T he following is a summary of recent Federal Reserve actions or announcements. To obtain a copy of any of these announcements, contact the Atlanta Fed Service Department at (404) 498-8474. Please give the docket number or circular letter number (if applicable) when calling to request a copy. The date on the circular letter may not be the same as the Federal Reserve Board announcement.

Sept. 28 The Federal Reserve Board, the Federal Deposit Insurance Corp. (FDIC), the Office of the Comptroller of the Currency (OCC), and the Office of Thrift Supervision (OTS), issued a joint statement addressing the banking agencies' supervisory approach to temporary balance sheet growth due to market response around the century date change. The release is available at
Circular letter 537-99

Oct. 6 The Federal Reserve Board amended Regulation D, Reserve Requirements of Depository Institutions, decreasing from $46.5 million to $44.3 million the amount in net transaction accounts to which a 3 percent reserve requirement will apply in 2000. The Board also changed from $4.9 million to $5.0 million the amount of reservable liabilities of each depository institution that is subject to a reserve requirement of zero percent. Additionally, the Board increased the deposit cutoff levels that are used in conjunction with the exemption level to determine the frequency and detail of deposit reporting required for each institution. The press release and notice are available at
Circular letter 542-99

Oct. 12 The Federal Reserve Board, the FDIC, the OCC and the OTS published guidelines for banks and thrifts regarding the risks associated with high loan-to-value residential real estate loans. The press release and guidelines are available at
Circular letter 541-99

Oct. 21 The Federal Reserve Board, the FDIC and the OCC issued a final rule on a proposal to expand the examination frequency cycle for certain U.S. branches and agencies of foreign banks. This action amends Regulation K (International Banking Operations) and became effective Oct. 22, 1999. This rule finalized an interim rule that made U.S. branches and agencies of foreign banks with total assets of $250 million or less eligible for an 18-month examination cycle if they met the qualifying criteria set out in the rule. The press release and notice are available at
Circular letter 545-99

Nov. 3 The Federal Reserve Board published its annual adjustment of the dollar amount that triggers additional disclosure requirements under the Truth in Lending Act for mortgage loans that bear fees above a specified dollar amount. The adjustment from $441 for 1999 to $451 for 2000 became effective Jan. 1, 2000. The press release and notice are available at
Circular letter 540-99

Nov. 12 The Federal Reserve Board approved modifications to the settlement finality for ACH credit transactions processed by the Federal Reserve Banks so that settlement becomes final when posted to depository institutions' accounts. The Board will require prefunding for any ACH credit transactions that settle through a Federal Reserve account that is being monitored in real time to help manage settlement risk. These changes will be implemented in early 2001. A specific implementation date will be announced three months in advance of the effective date. The press release and notice are available at
Circular letter 544-99