CBAI Urges Federal Reserve to Support Community Banks in Amending Regulation D

In a comment letter dated May 13, 2019, the Community Bankers Association (CBAI) urged the Board of Governors of the Federal Reserve System to promulgate an amendment to Regulation D that supports the use and interest payment levels on required and excess reserve balances from traditional financial institutions (e.g., community banks). All institutions which are eligible to invest and earn interest on Reserve Balances must be subject to the same roust regulation and supervision as community banks; and no “eligible institution” should be permitted to benefit from an unfair competitive advantage, further the concentration banking assets, or potentially destabilize the financial system – which could damage the traditional community banking business model, our financial system, the economy and American taxpayers. Read Comment Letter.