Excess Balance Account Resource Center

The Board of Governors is amending Regulation D, Reserve Requirements of Depository Institutions, to authorize the establishment of limited-purpose accounts at Federal Reserve Banks for the maintenance of excess balances of interest-eligible institutions, effective July 2, 2009. These accounts will earn interest as allowed by the Financial Services Regulatory Relief Act of 2006, as amended by the Emergency Economic Stabilization Act of 2008.

An excess balance account is an account at a Federal Reserve Bank established for one or more institutions (participants) that must be eligible to earn interest on balances held at the Federal Reserve Banks. Each participant must authorize another institution, such as its pass-through correspondent, to manage the excess balance account on its behalf pursuant to an Excess Balance Account Agreement. The Federal Reserve Banks pay interest on the average balance in the excess balance account over the reserve maintenance period and the agent disburses that interest to each participant in accordance with the instructions of the participant. Only excess balances may be placed in an excess balance account; the account balance cannot be used to satisfy reserve balance requirements or contractual clearing agreements.

Read the Federal Reserve Board press release (Off-site Link), announcement letter (PDF), Federal Register notice (Off-site Link) and FedFlash article.

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Questions?

Please contact your District’s excess balance account contact with questions or for assistance with excess balance account setup.