Reciprocal Plus/Minus Variations

Participating Institutions can tailor how deposits are managed by selecting a reciprocal processing structure that aligns with their funding, liquidity, and balance management goals. While all variations are based on reciprocal bank processing, each structure handles customer activity, reciprocal balances, and settlement differently. Understanding these differences can help determine which option best supports the Client's needs.

Reciprocal Processing Fundamentals

Under standard reciprocal processing, customer activity impacts the reciprocal balance, and daily activity is generally settled through reciprocal internal transfers. Reciprocal Plus and Reciprocal Minus build on this foundation by changing how balances are managed and how customer activity is settled.

0% Reciprocal Plus (+) Fixed Supplement

This variation maintains a fixed reciprocal balance while allowing the sending balance to fluctuate. Customer activity is treated as send-only activity and does not affect the reciprocal balance. Instead, customer activity is settled by wire. The supplement represents the fixed reciprocal balance, which is managed by R&T's Funding & Capacity team.

Daily Settlement

Daily customer activity is settled by wire rather than reciprocal internal transfers, since activity no longer affects the reciprocal balance. The reciprocal position remains fixed while the sending balance fluctuates.

Example

A bank wants to maintain a consistent reciprocal balance of $5 million while allowing customer deposits and withdrawals to fluctuate separately.

If customer deposits increase by $2 million:

• The reciprocal balance remains $5 million.
• The sending balance increases by $2 million.
• Daily settlement activity is handled through wire transfers rather than reciprocal internal transfers

Best Fit For

Institutions that want to maintain a consistent reciprocal balance while allowing customer activity to affect only their sending position.

100% Reciprocal Minus (-) Fixed Supplement​

This variation maintains a fixed reciprocal balance while allowing the sending balance to fluctuate. Customer activity is treated as send-only and does not affect the reciprocal balance. Instead, customer activity is settled by wire.

The fixed reciprocal supplement is established at the client's request and is subject to review and approval by R&T's Funding & Capacity team. Once established, the reciprocal position remains fixed while customer activity causes the sending balance to fluctuate.

Daily Settlement

Daily customer activity continues to settle through reciprocal internal transfers. Unlike the 0% Reciprocal + Supplement model, there is no change to the way daily customer activity is settled.

Example

A bank wants to maintain a fixed send amount of $10 million while allowing the receive balance to fluctuate.

If customer deposit activity increases:

• The receive balance adjusts accordingly.
• Customer activity continues to affect reciprocal balances.
• Daily settlement continues through reciprocal internal transfers.
• The fixed send amount remains unchanged.

Best Fit For

Institutions that want to preserve reciprocal settlement while separating a portion of their balances from reciprocal activity.

Reciprocal Plus

Reciprocal Plus combines reciprocal processing with one or more additional receive-only accounts. This allows an institution to maintain reciprocal functionality while expanding receive capacity through separate receive-bank accounts.

Daily Settlement

Daily customer activity continues to follow reciprocal processing. Additional receive capacity is provided through dedicated receive-only account structures.

Example

A bank currently participates as a reciprocal institution but wants additional capacity to receive deposits.

With Reciprocal Plus:

• The bank retains its existing reciprocal account.
• One or more receive-only accounts are added.
• Reciprocal processing continues as normal.
• Additional receive capacity becomes available through the new receive-only accounts

Best Fit For

Institutions that want to preserve reciprocal processing while increasing available receive capacity.

Switch Between Different Processing Styles

Participating Institutions that already use a Reciprocal Plus or Reciprocal Minus structure can request changes through their Relationship Manager and R&T's Funding & Capacity team. Funding & Capacity coordinates balance or supplement changes, while the Relationship Manager helps coordinate the client-facing request.

If a Participating Institution is not currently configured for Reciprocal Plus or Reciprocal Minus processing, contact your Relationship Manager to begin the setup process. Typical lead time is approximately one week, depending on readiness, wiring instructions, account setup, and required coordination.

Before requesting a change, consider how the new variation will affect:

• Daily settlement behavior
• Reciprocal balance management
• Receive capacity
• Operational requirements associated with the selected structure