Cash On Hand

Answered by:

Question:

Is there a Regulation that addresses total cash the bank can have on hand? Our bonding company does not give us any restrictions.

Answer:

I'm not aware of any such regulation. Reg D only stipulates the minimum amount the bank must have in the form of either vault cash or deposits with the Federal Reserve, but that's not really what you are looking for. I guess waytoo much cash could become a safety and soundness issue for the bank examiners or your external auditors, but itwould take so much to become material that it may not even be possible to rise to that level. I'd say if your bonding company is OK with the amounts, I'd drive on.

First published on BankersOnline.com 7/2/01