Oct. 11 (Bloomberg) -- The Federal Reserve requested comment today on proposed rules that would simplify so-called Regulation D, a rule focused on reserve requirements for banks.

The proposals are “intended to simplify the administration of reserve requirements and reduce administrative and operational costs for both depository institutions and Reserve Banks,” the Fed said today in a statement in Washington.

The rules would create a common two-week maintenance period for all depository institutions, set up a “penalty-free band” around reserve balance requirements and eliminate the contractual clearing balance program. The Fed is seeking comment within 60 days of the proposed rule’s publication in the Federal Register.

--Editors: James Tyson, Scott Lanman

To contact the reporter on this story: Joshua Zumbrun in Washington at jzumbrun@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net