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F ederal R eserve Bank
OF DALLAS
HELEN E. HOLCOM B
F IRST VICE P R E S ID E N T AND

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CHIEF OPERATING OFFICER

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DALLAS, TEXAS
75265-5906

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Notice 96-43

TO:

The Cashier or Individual Responsible for
Managing the Reserve/Clearing Account

SUBJECT
New Account Structure
Under Interstate Branching
DETAILS
Effective January 1, 1998, the Federal Reserve will implement a flexible new
approach to providing accounting services. This approach will provide institutions with
additional account information and facilitate account management. It is geared to m eet
the needs of depository institutions for consolidated account information as they branch
interstate. It will also provide improved accounting services for those institutions that do
not expect to participate in interstate branching.
The new approach works to address the added complexities of account
managem ent that could result for depository institutions that maintain multiple accounts
as they broaden branch networks to more than one District. U nder this approach,
depository institutions would be provided with a single ( “m aster”) account at a designat­
ed Reserve Bank. This single account would be used to settle all credits and debits
arising from financial transactions with any Reserve Bank, regardless of location.
Reserve adm inistration and risk management activities would also be conducted from
this single location. (Certain depository institutions who are required by regulation to
m aintain multiple accounts would not be affected by this change.)
Beyond this, using a new subaccount technique, account holders (regardless
of w hether they have an interstate presence) can define subsets of information that will
be provided daily to support the organization’ specific informational needs. In that
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fashion, the account service becomes tailored to specific user needs.

For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal
Reserve Bank of Dallas: Dallas Office (800) 333 -4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; Houston
Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

This enhanced account structure was developed, in large part, as a result of a
series of interviews conducted with a broad cross-section of the banking industry. In
these interviews, depository institutions indicated that they preferred to manage their
account relationships with Reserve Banks on a consolidated basis, under a single
“m aster” account structure. Concurrently, depository institutions indicated interest in
the ability to segregate information on financial activities in differing ways to meet
differing organizational needs. A synopsis of the interview results can be obtained from
your local Reserve Bank.
More details on how the new account structure can be used will be provided
through a series of educational materials and seminars that will be offered to financial
institutions in early 1997. Institutions are encouraged to contact their local Reserve
Bank staff with any questions they may have, so that concerns can be addressed and
incorporated, as necessary, into the Federal Reserve’ ongoing development of new
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accounting services.
MORE INFORMATION
For more information, please contact Lyne Carter, (214) 922-5901, at the
Dallas Office; Javier Jimenez, (915) 521-8202, at the El Paso Office; Ren6 Gonzales,
(713) 652-1543, at the Houston Office; or Karen Salisbury, (210) 978-1403, at the San
Antonio Office.
For additional copies of this Bank’ notice, please contact the Public Affairs
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D epartm ent at (214) 922-5254.
Sincerely,


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102