Financial Accounting and Reporting Solutions MoneyVe$T Module

The Information Technology, Inc. MoneyVe$T provides all banks, large and small, with an extraordinary solution to manage reserve requirements to increase investment income. Based on Federal Reserve Regulation D, banks have the opportunity to transfer transaction-based account balances into non-transaction-based account balances to lower reserve requirements and thereby turning non-earning assets into earning assets.

System Summary

  To achieve reduced reserve requirements, DDA and savings accounts are selected by Class Code to be processed by MoneyVe$T. For each DDA or savings account, MoneyVe$T generates a non-transaction-based sub-account that has no reserve requirements and a transaction-based sub-account which is subject to reserve requirements. Funds from the DDA or savings account are represented in the two sub-accounts.

At the beginning of each month MoneyVe$T determines by using multiple account level evaluation methods, how much of the DDA or savings account balance is distributed between the two sub-accounts. As customer activity is presented, funds are taken from the transaction account. When the transaction account can no longer support customer activity, MoneyVe$T automatically transfers funds from the non-transaction account to the transaction account.

For example, the optimum method for an account that typically has less than six transfers each month is to transfer the entire balance to the non-transaction account at the beginning of each calendar month, thus eliminating any reserve requirements for the month. If the account should reach the regulatory requirement limit of six transfers per month, the account's non-transaction account balance is transferred to its transaction account. The non-transaction account remains inactive for the remainder of the calendar month.

Account Evaluation

MoneyVe$T has multiple methods of account evaluation in order to capitalize on the varying levels of customer activity and maximize the diversity of accounts that can be processed. By reviewing an account's history and comparing factors such as the daily transfer activity, average transactions per month and average account balance, the MoneyVe$T Analysis Program predicts the optimum method for minimizing the required reserves on a month-by-month, account-by-account basis.

Characteristics and Features

  All activity is conducted on an enterprise server, which eliminates the additional work of moving files to a PC.

Individual accounts, rather than a group of accounts, are evaluated to optimize the non-transaction account balance to ensure the maximum reduction of reserve requirements is accomplished.

The MoneyVe$T Master File enables all processing to take place outside the DDA and savings systems. The analysis of individual accounts and the assignment of the optimum evaluation method occur automatically.

Provides recommendations on how to address regulatory considerations prior to implementation.

Customer Accounting and Notification

  All activity generated by MoneyVe$T is invisible to customers. Customer statements, interest earnings, availability of funds and statements are unaffected by the transferring of funds between sub-accounts.

Disclosure to customers is required by the Federal Reserve. Consult compliance officer to determine the required regulatory disclosures to customers.