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Can you summarize MDCM Fin. Inst. Section 3-607?
Short Summary
This section of the Code of Maryland, specifically Title 3, SubTitle 6, governs the reserve requirements for commercial banks. It defines key terms such as ‘demand deposit’ and ’time deposit’ and provides their respective meanings. Commercial banks are required to maintain a reserve equal to at least 15 percent of their demand deposits and 3 percent of their time deposits. The reserve can be held in cash, demand deposits in a bank of good standing, or approved securities. The Commissioner has the authority to change the reserve requirements if necessary to maintain sound banking practices. However, the reserve cannot exceed 30 percent for demand deposits and 6 percent for time deposits. This section does not apply to deposits of public funds that are collateralized. No specific penalties are mentioned in this section.
Whom does it apply to?
Commercial banks
What does it govern?
Reserve requirements for commercial banks
What are exemptions?
Deposits of public funds for which the commercial bank pledges collateral
What are the Penalties?
No penalties mentioned
Jurisdiction
Maryland