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Eliminating Float a Regulatory Requirement?
Answer by Jim Bedsole, BOL Guru
Guru Bio
Question: Due to the recent implementation of image cash letter transmissions at our financial institution, we have experienced an increase in our immediate funds availability. Have there been any changes to banking regulations that would require us to change our float tables and eliminate the two day or three day float, as it pertains to paying interest to our clients on these expedited available funds?
Answer: I'm not aware of any changes in this regard. Reg DD requires that you begin accruing interest no later than the day you receive credit for the deposited item. If your float time has shortened, you'll definitely need to adjust the float tables that drive interest accrual calculations.
First published on BankersOnline.com 4/14/08
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