Deposit Reclassification, also known as a retail sweep program, is a Federal Reserve Board acknowledged practice that reduces your reserve requirement through classifying your institution’s checking accounts as savings, which are not subject to reserve requirements.
Federal Reserve Balances behave as an illiquid asset, earning minimal interest (Fed Funds). Your institution can convert these assets with Deposit Reclassification into earning assets with a much better rate of return – perhaps with commercial, mortgage, and consumer loans, or higher yielding securities in your investment portfolio.
Contact SalesLearn more about how Deposit Reclassification works and can help your financial institution recover reserve balances.
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