Are depository institutions responsible for ensuring that their Federal Reserve accounts are managed effectively and have non-negative balances at the end of each day?
Yes. Each account holder must have procedures in place to manage its account effectively and to ensure that it has a non-negative balance in its account at the end of each day. Reserve Banks provide tools to assist account holders in managing their Federal Reserve accounts, but these tools should not replace an institution’s own internal controls for managing its account.
Related Questions
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