Federal Reserve Clarifies Account Access Guidelines for Excess Balance Accounts
Washington, D.C. (December 11, 2024) – The Federal Reserve Board (FRB) today provided a technical clarification that its account access guidelines apply to excess balance accounts (EBAs).
EBAs are accounts held by depository institutions at the Federal Reserve that exceed the institution’s required reserve balance. Institutions may use EBAs to manage their liquidity and participate in the Federal Reserve’s payment systems.
The FRB’s clarification emphasizes that the account access guidelines, which were issued in 2018, apply equally to EBAs and other types of accounts held at the Federal Reserve. These guidelines establish the criteria and procedures for access to the Federal Reserve’s payment systems, which are essential for institutions to conduct their business.
Specifically, the guidelines require institutions to have:
- A Federal Reserve master account
- A Federal Reserve settlement account
- A secure method of communication with the Federal Reserve
- Adequate risk management and internal controls
The FRB noted that the clarification does not change the substance of the account access guidelines but merely provides additional clarity on their application to EBAs.
The FRB also stated that it is committed to working with depository institutions to ensure that they have the necessary access to the Federal Reserve’s payment systems to meet their business needs.
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