[Code of Federal Regulations]
[Title 12, Volume 2]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR204.1]

[Page 124-125]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 204--RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS (REGULATION D)--Table of Contents
 
Sec. 204.1  Authority, purpose and scope.

    (a) Authority. This part is issued under the authority of section 19 
(12 U.S.C. 461 et seq.) and other provisions of the Federal Reserve Act 
and of section 7 of the International Banking Act of 1978 (12 U.S.C. 
3105).
    (b) Purpose. This part relates to reserves that depository 
institutions are required to maintain for the purpose of facilitating 
the implementation of monetary policy by the Federal Reserve System.
    (c) Scope. (1) The following depository institutions are required to 
maintain reserves in accordance with this part:
    (i) Any insured bank as defined in section 3 of the Federal Deposit 
Insurance Act (12 U.S.C. 1813(h)) or any bank that is eligible to apply 
to become an insured bank under section 5 of such Act (12 U.S.C. 1815);
    (ii) Any savings bank or mutual savings bank as defined in section 3 
of the Federal Deposit Insurance Act (12 U.S.C. 1813(f), (g));
    (iii) Any insured credit union as defined in section 101 of the 
Federal Credit Union Act (12 U.S.C. 1752(7)) or any credit union that is 
eligible to apply to become an insured credit union under section 201 of 
such Act (12 U.S.C. 1781);
    (iv) Any member as defined in section 2 of the Federal Home Loan 
Bank Act (12 U.S.C. 1422(4)); and
    (v) Any insured institution as defined in section 401 of the 
National Housing Act (12 U.S.C. 1724(a)) or any institution which is 
eligible to apply to become an insured institution under section 403 of 
such Act (12 U.S.C. 1726).
    (2) Except as may be otherwise provided by the Board, a foreign 
bank's branch or agency located in the United States is required to 
comply with the provisions of this part in the same manner and to the 
same extent as if the branch or agency were a member bank, if its parent 
foreign bank (i) has total worldwide consolidated bank assets in excess 
of $1 billion; or (ii) is controlled by a foreign company or by a group 
of foreign companies that own or control foreign banks that in the 
aggregate have total worldwide consolidated bank assets in excess of $1 
billion. In addition, any other foreign bank's branch located in the 
United States that is eligible to apply to become an insured bank under 
section 5 of the Federal Deposit Insurance Act (12 U.S.C. 1815) is 
required to maintain

[[Page 125]]

reserves in accordance with this part as a nonmember depository 
institution.
    (3) Except as may be otherwise provided by the Board, an Edge 
Corporation (12 U.S.C. 611 et seq.) or an Agreement Corporation (12 
U.S.C. 601 et seq.) is required to comply with the provisions of this 
part in the same manner and to the same extent as a member bank.
    (4) This part does not apply to any financial institution that (i) 
is organized solely to do business with other financial institutions; 
(ii) is owned primarily by the financial institutions with which it does 
business; and (iii) does not do business with the general public.
    (5) The provisions of this part do not apply to any deposit that is 
payable only at an office located outside the United States.

[45 FR 56018, Aug. 22, 1980]