Due From Banks

Due from Domestic Banks—Time

In addition to demand deposits kept at the Federal Reserve bank and with correspondent banks, a bank may maintain interest-bearing time deposits with other commercial banks. In 1977, the OCC issued an interpretation of 12 USC 24 authorizing national banks to make deposits in mutual savings and loan associations. Previously, national banks were limited to placing deposits with banks and incorporated thrift institutions. Those deposits are a form of investment, and relevant examination considerations are included in the “Investment Securities” section of this handbook. (Note: Examination procedures for due from domestic banks—time accounts are now included in this section.)

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