Understanding Regulation D
In 1935, the Federal Reserve passed Regulation D - Reserve Requirements of Depository Institutions ("Reg. D"). The regulation has been amended several times since 1935 and most recently in December 2002. Reg. D was issued as a means to control monetary policy and to ensure that sufficient liquidity exists in the financial marketplace. Specifically, financial institutions, including credit unions, must maintain sufficient reserve funds, money not available for member loans or investment, to meet the monetary needs of our members. The Federal Reserve requires that member accounts be categorized as transaction and or savings accounts. Please refer to the table below for information on the transaction types and limitations for our various accounts.