Virginia Code 6.2-889: Required reserves.
A. As used in this section, unless the context requires otherwise:
Terms Used In Virginia Code 6.2-889
- Bank: means a corporation authorized by statute to accept deposits and to hold itself out to the public as engaged in the banking business in the Commonwealth. See Virginia Code 6.2-800
- Commission: means the State Corporation Commission. See Virginia Code 6.2-100
- Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
- United States: includes the 50 states, the District of Columbia the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands and the United States Virgin Islands. See Virginia Code 1-255
“Demand deposits” means all deposits the payment of which can be legally required in less than 30 days.
“Time deposits” means all deposits the payment of which cannot be legally required in less than 30 days.
B. Every bank shall maintain a reserve related to its demand deposits and to its time deposits. The reserve on:
1. Demand deposits shall consist of actual cash on hand and balances payable on demand, due from other solvent banks; and
2. Time deposits shall consist of actual cash on hand and balances payable on demand due from other solvent banks; provided that up to 100 percent of such reserve on time deposits may be in the form of short maturity general obligations of the United States, such maximum percentage to be fixed by the Commission.
C. The Commission shall by regulation establish from time to time the reserve requirements within the following limits:
1. On demand deposits: zero to 15 percent; and
2. On time deposits: zero to five percent.
D. The reserves required herein for each day shall be computed on the basis of average daily deposits covering a biweekly period, provided that shorter averaging periods may be fixed by regulation of the Commission.
E. Nothing herein shall be construed to relieve any bank which is a member of the Federal Reserve System from maintaining a reserve fund in accordance with the requirements applicable to such member banks.
Code 1950, § 6-52; 1966, c. 584, § 6.1-69; 1976, c. 658; 1981, c. 65; 2010, c. 794.