1 / 12

Understanding Vault Cash: FAQ for Depository Institutions

Get answers to common questions on vault cash for depository institutions. Learn about assets collection, reserves, and inclusion criteria for various types of cash assets. Clear your doubts with expert guidance.

ping
Download Presentation

Understanding Vault Cash: FAQ for Depository Institutions

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. E.1.Vault Cash Julie Powell, Business Specialist 216/579-2085

  2. E.1 • Why are assets collected on a deposits report? • Considered – Reserves • (i.e. Satisfy reserve requirement) • May be used at any time to satisfy depositors’ claims • Must be reported to apply

  3. E.1 Yes or No • May gold or silver be counted as vault cash? • May coin sent to a coin wrapper be included as vault cash? • May a depository sell its excess vault cash to another depository – overnight? • Are redeemed savings bonds vault cash? • May vault cash held at another depository be included as vault cash?

  4. E.1 Yes or No • May gold or silver be counted as vault cash? No, Section 19c of the Federal Reserve Act: 1. Not in the form of reserves 2. Not U.S. currency 3. Bullion or coin exceeds face value

  5. E.1 Yes or No • May coin sent to a coin wrapper be included as vault cash? Yes, if : 1. Still an asset 2. Immediately available

  6. E.1 Yes or No • May a depository sell its excess vault cash to another depository – overnight? No – typically viewed as reserve avoidance

  7. E.1 Yes or No • Are redeemed savings bonds vault cash? No, not U.S. currency

  8. E.1 Yes or No • May vault cash held at another depository be included as vault cash? Yes, if: 1. Full ownership 2. Immediately available – nearby 3. The depository storing does not count

  9. E.1 • What are includable items • US currency and coin in the vault/teller drawer • US currency and coin in transit to Fed or correspondent • ATM currency • US currency and coin in other vaults – exceptions

  10. E1 • Transit currency and coin • To a FRB; if you have not received credit • From a FRB; already charged

  11. E1 Legitimate Differences • Call Report – foreign currency is on the Call This is applicable to all organization types

  12. E1 Questions?

More Related