Home purchase loan originations of all types were about evenly divided between depositories
and mortgage companies, whereas almost three-fourths of the government-backed home purchase loans were originated by mortgage companies (including those affiliated with depositories
On days when the aggegate level of reserves falls short of what depositories
anticipated, the federal funds market tightens, and the largest banks can be subject to sudden demands for short-term liquidity.
Second, because required reserve balances must be maintained only on an average basis over a two-week period, depositories
have some scope to adjust the daily balances they hold in a manner that helps stabilize the federal funds rate.
Several measures taken by the Federal Reserve also have helped to foster stability in the funds market, including improvements in the timeliness of account information provided to depository institutions, more frequent open market operations, which are increasingly geared to daily payment needs rather than two-week-average requirements, a shift to lagged reserve requirements, which gives depositories
and the Federal Reserve advance information on the demand for reserves, and improved procedures for estimating reserve demand.
, with a heritage in equities, corporate bonds, and municipal bonds, until recently provided services for only those securities that settle in next-day funds.
The absence of interest on demand deposits, which are held predominantly by businesses, is no bar to the movement of funds from depositories
with surpluses--whatever their size or location--to the markets where the funding can be profitably employed.
Several companies told Hegar they were skeptical that the Texas depository could ever gain membership in COMEX, which currently requires that all its licensed gold depositories
be located within 150 miles of New York City.
As part of FTD Redesign, the Federal Reserve Banks of Minneapolis and Atlanta, in their roles as depositories
for Treasury, are conducting a test of an electronic system of tax payment for businesses called Taxlink-FRB.
Even private organizations may evaluate potential depositories
using CRA factors; in 1991, the American Bar Association resolved to place its accounts whenever possible in financial institutions that have shown outstanding or satisfactory performance in helping to meet the credit needs of their communities, including low- and moderate-income neighborhoods.
Shareholders holding their shares with depositories
other than with the company's Registrar, Transfer Agent and Depository, Montreal Trust, will be notified and served through either that depository, i.
Depository credit remains especially weak, reflecting not only muted private loan demands, but also continued caution among depositories
The reduced depository intermediation stemmed from emerging problems of asset quality, which, in turn, prompted both the pulling back of depositories
from lending and responses by regulators that reinforced those tendencies.
Other statutes and regulations, however, apply only to banks and other insured depositories
because of the special and critical functions they perform: (1) their role in the payments mechanism, which facilitates payments by businesses, governments, and consumers domestically and throughout the world; (2) their role as a chartered recipient of federally insured deposits providing a source of savings and investment to the general public that is free of the risk of default, up to $100,000; (3) their role as important credit intermediaries for all segments of society; and not least (4) their importance as the principal vehicle through which the nation's monetary policy is implemented.
With respect to the question of whether supervisors would have concerns about insured depositories
participating in such securitization activity, either as investors or issuers, our view is that it is acceptable if it is done in a safe and sound manner.
Statement by Richard Spillenkothen, Director, Division of Banking Supervision and Regulation, Board of Governors of the Federal Reserve System, and Donald H. Wilson, Financial Markets Officer, Federal Reserve Bank of Chicago, before the Subcommittee on Policy, Research, and Insurance of the Committee on Banking, Finance and Urban Affairs, U.S. House of Representatives, May 6, 1992
These arrangements involve two types of specialized financial intermediaries, collectively termed clearing organizations: (1) clearinghouses, which perform multilateral netting of purchase and sales contracts and in many cases provide trade comparison services, and (2) depositories
, which immobilize or dematerialize securities and in many cases integrate a book-entry securities transfer system with a money transfer system.