Regulation CC

Definition

The CC Regulation is a banking regulation established by the Federal Reserve System in the United States, aimed at regulating the availability of deposits made by customers into transaction accounts. It ensures the timely availability of deposits by implementing the Expedited Funds Availability Act and the Check Clearing for the 21st Century Act.

Origin

The origin of the CC Regulation dates back to 1987 when the United States passed the Expedited Funds Availability Act to address the issue of excessive hold times imposed by banks on customer-deposited checks. The Check Clearing for the 21st Century Act later enhanced this regulation.

Categories and Features

The CC Regulation primarily involves two major laws: the Expedited Funds Availability Act, which mandates banks to make deposits available within a specified timeframe, and the Check Clearing for the 21st Century Act, which accelerates the check clearing process through electronic check processing. These regulations are characterized by increased liquidity and reduced customer wait times.

Case Studies

A typical case is Bank of America, which significantly reduced check deposit processing times after implementing the CC Regulation, thereby improving customer satisfaction. Another example is Wells Fargo, which reduced check clearing time and costs through electronic check processing technology.

Common Issues

Investors might encounter issues such as unfamiliarity with different banks' deposit availability policies and concerns about the security of electronic check processing. Typically, banks provide detailed policy explanations, and the security of electronic check processing is ensured through multiple encryption technologies.