Reciprocal Balances

Reciprocal balances arise when two depository institutions maintain deposit
accounts with each other; that is, when a reporting bank has both a due to and a due from balance with another depository institution.
For purposes of the balance sheet of the Report of Condition, reciprocal balances between the reporting bank and other depository institutions may be reported on a net basis when a right of setoff exists. See the Glossary entry for “offsetting” for the conditions that must be met for a right of setoff to exist.

 

reference: FFIEC

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