For immediate release

The Federal Reserve today decided not to propose specific changes to Regulation CC at this time to reduce the maximum holds banks may place on nonlocal checks. The Board concluded that return times do not support shortening the permissible holds on nonlocal checks and that the costs and potential risks of shortening holds on all or some nonlocal checks would outweigh the likely benefits. This decision was based on an analysis of issues raised by commenters in response to an advance notice of proposed rulemaking issued in December 1998 that requested comment on the potential benefits and drawbacks of shortening the maximum hold for nonlocal checks. The Board's notice is attached.

Summary only | Summary and notice (39 KB PDF)

1999 Banking and consumer regulatory policy