Federal Reserve Bank Services: Imputed Income on Clearing Balances — 1994-08-19 [94-20408]

The Board is requesting comment on a proposal to modify the methodology for imputing clearing balance income to more closely parallel the practices of a private sector service provider. Specifically, the Board is requesting comment on a proposal to change the rate used to impute clearing balance income from the 90-day Treasury bill coupon equivalent yield to a longer term Treasury rate based on the earning asset maturity structure of the largest bank holding companies (BHCs). The intended effect of the proposal is to promote competitive equity with private sector practices by matching the maturity structure for investment of clearing balances to the structure revealed in bank holding company data on investments.