By the Division of Banks

    The purpose of this bulletin is to set the reserve requirements prescribed by G.L. c. 172, s. 31. This bulletin applies to all state-chartered trust companies, savings banks, and co-operative banks in stock form (state-chartered stock banks).


    Massachusetts banking statutes require that state-chartered stock banks maintain reserves as prescribed by G.L. c. 172, s. 31. Paragraph C of section 31 of G.L. c. 172 provides the Division of Banks (Division) with discretionary authority to either increase or decrease reserves based on prevailing banking conditions.

    In light of the federally-mandated reserve requirements established by the Federal Reserve in Regulation D, 12 CFR 204, the interest of the Division in requiring its own reserves is outweighed by the regulatory and financial burden upon the industry. Therefore, as authorized by G.L. c. 172 s. 31C, the Division has determined that the reserve percentage required by paragraph A of this statute be set at zero. Furthermore, unless otherwise provided by the Division, the filing requirements of paragraph D of said section 31 are suspended.


    This bulletin was first issued in 1980 as Administrative Bulletin 18-3.


    G.L. c. 172, s. 31; 12 CFR 204.

Recommended Content

People also viewed...

You recently viewed...

Personalization is OFF. Your personal browsing history at is not visible because your personalization is turned off. To view your history, turn your personalization on.

Learn more on our .

*Recommendations are based on site visitor traffic patterns and are not endorsements of that content.