Changes to Reg Q?

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Question:

Do you know if there are going to be changes to Regulation Q with paying interest on commercial accounts? I keep hearing about this, but I can't find anything definite on any upcoming compliance calendar of events.

Answer:

One of the provisions of the Dodd-Frank Financial Reform Act was an elimination of the prohibition on paying interest on commercial checking accounts. That provision goes into effect in July, 2011. My expectation is that the Fed will be proposing a rule change sometime after the first of the year on Reg Q.

First published on BankersOnline.com 12/06/10