Financial Institution Services
Solutions for Community Banks
Since 1994, the Federal Reserve Bank, under a set of clearly defined parameters, has allowed share draft (checking) accounts (defined as "transactions accounts" by the Federal Reserve) of financial institutions to be structured so that a portion of each member's balance is maintained in a linked savings subaccount.
The savings portion of a transaction account is not subject to the 10 percent non-interest-bearing Federal Reserve balance that is required for transaction accounts. The net impact is that your institution's reserve requirements fall to insignificant levels. Other than an initial, non-adverse notice to the customer, the process of transferring funds to the savings sub account is invisible to your customer.
Deposit Reclassification has been completed for hundreds of banks, thrifts and credit unions in all 12 Federal Reserve Bank Districts. On average, financial institutions have increased annual earning assets by $1,000,000!
This process can work for financial institutions of all sizes.
Federal Reserve approval is secured prior to
implementation. The process is completely under your control and more importantly, it has no negative impact on
What's Your Profit Opportunity?
Interested in knowing what your institution's Profit Opportunity might be? Fax us two recent FR2900s and we'll run your numbers using our computer simulation to accurately quantify your profit opportunity. There is no cost or obligation for our computer simulation and your results will be ready in two to three working days, just fax two recent FR2900s to Romney & Associates at 509-455-5442.
Have questions? Call us at Toll Free at 877-604-6528
Need more information? More information on Deposit Reclassification is available in these two documents:
"Deposit Reclassification: Benefits and Strategies" by Joe Moss
For more information about any of these services, please contact:
ROMNEY & ASSOCIATES
1516 W. Riverside
Spokane, WA 99201
(509) 455-8173 Tel
(509) 455-5442 Fax