Reserve Requirements of Depository Institutions, 57488-57490 [E8-22944]

Download as PDF 57488 Federal Register / Vol. 73, No. 193 / Friday, October 3, 2008 / Rules and Regulations to ensure consistency and continuity in the Board’s financial planning and operations, and to recognize the recent order amendment revising the marketing year, the assessment rate change and the 2008–09 marketing year will become effective September 1, 2008. Additional modification is made to correct the erroneous references to the total expenditures. Finally, the rule is further modified to change the Budget Expense Category tables to include the amount budgeted for production research contingencies and the statement at the asterisk to indicate the production research contingencies are part of the Production Research budget. Although the tables were not necessarily intended to capture all the Board’s expenses, the modifications may provide more clarity. A small business guide on complying with fruit, vegetable, and specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/ AMSv1.0/ams.fetchTemplateData.do? template=TemplateN&page=Marketing OrdersSmallBusinessGuide. Any questions about the compliance guide should be sent to Jay Guerber at the previously mentioned address in the ■ FOR FURTHER INFORMATION CONTACT Reserve Requirements of Depository Institutions jlentini on PROD1PC65 with RULES section. After consideration of all relevant material presented, including the information and recommendation submitted by the Board and other available information, it is hereby found that this rule, as hereinafter set forth, will tend to effectuate the declared policy of the Act. Pursuant to 5 U.S.C. 553, it is also found and determined that good cause exists for not postponing the effective date of this rule until 30 days after publication in the Federal Register because the 2008–09 marketing year began on September 1, 2008, and the marketing order requires that the rate of assessment for each year apply to all assessable walnuts handled during the year; the Board needs to have sufficient funds to pay its expenses which are incurred on a continuous basis; and handlers are aware of this action which was unanimously recommended by the Board at a public meeting and is similar to other assessment rate actions issued in past years. Also, a 15-day comment period was provided for in the proposed rule and no comments in opposition to the rule were received. List of Subjects in 7 CFR Part 984 Walnuts, Marketing agreements, Nuts, Reporting and recordkeeping requirements. VerDate Aug<31>2005 17:58 Oct 02, 2008 Jkt 217001 For the reasons set forth in the preamble, 7 CFR part 984 is amended as follows: PART 984—WALNUTS GROWN IN CALIFORNIA 1. The authority citation for 7 CFR part 984 continues to read as follows: ■ Authority: 7 U.S.C. 601–674. 2. Section 984.347 is revised to read as follows: ■ § 984.347 Assessment rate. On and after September 1, 2008, an assessment rate of $0.0158 per kernelweight pound is established for California merchantable walnuts. Dated: September 29, 2008. Lloyd C. Day, Administrator, Agricultural Marketing Service. [FR Doc. E8–23390 Filed 10–2–08; 8:45 am] BILLING CODE 3410–02–P FEDERAL RESERVE SYSTEM 12 CFR Part 204 [Regulation D; Docket No. R–1297] Board of Governors of the Federal Reserve System. ACTION: Final rule. AGENCY: SUMMARY: The Board is amending Regulation D, Reserve Requirements of Depository Institutions, to reflect the annual indexing of the reserve requirement exemption amount and the low reserve tranche for 2009. The Regulation D amendments set the amount of total reservable liabilities of each depository institution that is subject to a zero percent reserve requirement in 2009 at $10.3 million, up from $9.3 million in 2008. This amount is known as the reserve requirement exemption amount. The Regulation D amendment also sets the amount of net transaction accounts at each depository institution that is subject to a three percent reserve requirement in 2009 at $44.4 million, up from $43.9 million in 2008. This amount is known as the low reserve tranche. The adjustments to both of these amounts are derived using statutory formulas specified in the Federal Reserve Act. The Board is also announcing changes in two other amounts, the nonexempt deposit cutoff level and the reduced reporting limit, that are used to determine the frequency at which depository institutions must submit deposit reports. PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 Effective date: November 3, 2008. Compliance dates: For depository institutions that report deposit data weekly, the new low reserve tranche and reserve requirement exemption amount will apply to the fourteen-day reserve computation period that begins Tuesday, December 2, 2008, and the corresponding fourteen-day reserve maintenance period that begins Thursday, January 1, 2009. For depository institutions that report deposit data quarterly, the new low reserve tranche and reserve requirement exemption amount will apply to the seven-day reserve computation period that begins Tuesday, December 16, 2008, and the corresponding seven-day reserve maintenance period that begins Thursday, January 15, 2009. For all depository institutions, these new values of the nonexempt deposit cutoff level, the reserve requirement exemption amount, and the reduced reporting limit will be used to determine the frequency at which a depository institution submits deposit reports effective in either June or September 2009. FOR FURTHER INFORMATION CONTACT: Sophia Allison, Senior Counsel (202/ 452–3565), Legal Division, or Margaret Gillis DeBoer, Senior Financial Analyst (202/452–3139), Division of Monetary Affairs; for users of Telecommunications Device for the Deaf (TDD) only, contact (202/263–4869); Board of Governors of the Federal Reserve System, 20th and C Streets, NW., Washington, DC 20551. SUPPLEMENTARY INFORMATION: Section 19(b)(2) of the Federal Reserve Act (12 U.S.C. 461(b)(2)) requires each depository institution to maintain reserves against its transaction accounts and nonpersonal time deposits, as prescribed by Board regulations, for the purpose of implementing monetary policy. Section 11(a)(2) of the Federal Reserve Act (12 U.S.C. 248(a)(2)) authorizes the Board to require reports of liabilities and assets from depository institutions to enable the Board to conduct monetary policy. The Board’s actions with respect to each of these provisions are discussed in turn below. DATES: 1. Reserve Requirements Pursuant to section 19(b) of the Federal Reserve Act (Act), transaction account balances maintained at each depository institution are subject to reserve requirement ratios of zero, three, or ten percent. Section 19(b)(11)(A) of the Act (12 U.S.C. 461(b)(11)(A)) provides that a zero percent reserve E:\FR\FM\03OCR1.SGM 03OCR1 jlentini on PROD1PC65 with RULES Federal Register / Vol. 73, No. 193 / Friday, October 3, 2008 / Rules and Regulations requirement shall apply at each depository institution to total reservable liabilities that do not exceed a certain amount, known as the reserve requirement exemption amount. Section 19(b)(11)(B) provides that, before December 31 of each year, the Board shall issue a regulation adjusting the reserve requirement exemption amount for the next calendar year if total reservable liabilities held at all depository institutions increase from one year to the next. No adjustment is made to the reserve requirement exemption amount if total reservable liabilities held at all depository institutions should decrease during the applicable time period. The Act requires the percentage increase in the reserve requirement exemption amount to be 80 percent of the increase in total reservable liabilities of all depository institutions over the one-year period that ends on the June 30 prior to the adjustment. Total reservable liabilities of all depository institutions increased 13.0 percent (from $4,211 billion to $4,760 billion) between June 30, 2007, and June 30, 2008. Accordingly, the Board is amending Regulation D to increase the reserve requirement exemption amount by $1.0 million, from $9.3 million for 2008 to $10.3 million for 2009.1 Pursuant to Section 19(b)(2) of the Act (12 U.S.C. 461(b)(2)), transaction account balances maintained at each depository institution over the reserve requirement exemption amount and up to a certain amount, known as the low reserve tranche, are subject to a three percent reserve requirement. Transaction account balances over the low reserve tranche are subject to a ten percent reserve requirement. Section 19(b)(2) also provides that, before December 31 of each year, the Board shall issue a regulation adjusting the low reserve tranche for the next calendar year. The Act requires the adjustment in the low reserve tranche to be 80 percent of the percentage increase or decrease in total transaction accounts of all depository institutions over the one-year period that ends on the June 30 prior to the adjustment. Net transaction accounts of all depository institutions increased 1.4 percent (from $646 billion to $655 billion) between June 30, 2007 and June 30, 2008. Accordingly, the Board is amending Regulation D (12 CFR part 204) to increase the low reserve tranche for net transaction accounts by $0.5 1 Consistent with Board practice, the low reserve tranche and reserve requirement exemption amounts have been rounded to the nearest $0.1 million. VerDate Aug<31>2005 17:58 Oct 02, 2008 Jkt 217001 million, from $43.9 million for 2008 to $44.4 million for 2009. For depository institutions that file deposit reports weekly, the new low reserve tranche and reserve requirement exemption amount will be effective for the fourteen-day reserve computation period beginning Tuesday, December 2, 2008, and for the corresponding fourteen-day reserve maintenance period beginning Thursday, January 1, 2009. For depository institutions that report quarterly, the new low reserve tranche and reserve requirement exemption amount will be effective for the seven-day reserve computation period beginning Tuesday, December 16, 2008, and for the corresponding seven-day reserve maintenance period beginning Thursday, January 15, 2009. 2. Deposit Reports Section 11(b)(2) of the Federal Reserve Act authorizes the Board to require depository institutions to file reports of their liabilities and assets as the Board may determine to be necessary or desirable to enable it to discharge its responsibility to monitor and control the monetary and credit aggregates. The Board screens depository institutions each year and assigns them to one of four deposit reporting panels (weekly reporters, quarterly reporters, annual reporters, or nonreporters). The panel assignment for annual reporters is effective in June of the screening year; the panel assignment for weekly and quarterly reporters is effective in September of the screening year. In order to ease reporting burden, the Board permits smaller depository institutions to submit deposit reports less frequently than larger depository institutions. The Board permits depository institutions with net transaction accounts above the reserve requirement exemption amount but total transaction accounts, savings deposits, and small time deposits below a specified level (the ‘‘nonexempt deposit cutoff’’) to report deposit data quarterly. Depository institutions with net transaction accounts above the reserve requirement exemption amount but with total transaction accounts, savings deposits, and small time deposits above the nonexempt deposit cutoff are required to report deposit data weekly. The Board requires certain large depository institutions to report weekly regardless of the level of their net transaction accounts if the depository institution’s total transaction accounts, savings deposits, and small time deposits exceeds a specified level (the ‘‘reduced reporting limit’’). The nonexempt deposit cutoff level and the PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 57489 reduced reporting limit are adjusted annually, by an amount equal to 80 percent of the increase, if any, in total transaction accounts, savings deposits, and small time deposits of all depository institutions over the one-year period that ends on the June 30 prior to the adjustment. From June 30, 2007 to June 30, 2008, total transaction accounts, savings deposits, and small time deposits at all depository institutions increased 5 percent (from $6,144 billion to $6,443 billion). Accordingly, the Board is increasing the nonexempt deposit cutoff level to $224.6 million for 2009. The Board is also increasing the reduced reporting limit to $1,258 million for 2009.2 Beginning in 2009, the boundaries of the four deposit reporting panels will be defined as follows. Those depository institutions with net transaction accounts over $10.3 million (the reserve requirement exemption amount) or with total transaction accounts, savings deposits, and small time deposits greater than or equal to $1,258 million (the reduced reporting limit) are subject to detailed reporting, and must file a Report of Transaction Accounts, Other Deposits and Vault Cash (FR 2900 report) either weekly or quarterly. Of this group, those with total transaction accounts, savings deposits, and small time deposits greater than or equal to $224.6 million (the nonexempt deposit cutoff level) are required to file the FR 2900 report each week, while those with total transaction accounts, savings deposits, and small time deposits less than $224.6 million are required to file the FR 2900 report each quarter. Those depository institutions with net transaction accounts less than or equal to $10.3 million (the reserve requirement exemption amount) and with total transaction accounts, savings deposits, and small time deposits less than $1,258 million (the reduced reporting limit) are eligible for reduced reporting, and must either file a deposit report annually or not at all. Of this group, those with total deposits greater than $10.3 million (but with total transaction accounts, savings deposits, and small time deposits less than $1,258 million) are required to file the Annual Report of Deposits and Reservable Liabilities (FR 2910a) report annually, while those with total deposits less than or equal to $10.3 million are not required to file a deposit report. A depository institution that adjusts 2 Consistent with Board practice, the nonexempt deposit cutoff level has been rounded to the nearest $0.1 million, and the reduced reporting limit has been rounded to the nearest $1 million. E:\FR\FM\03OCR1.SGM 03OCR1 57490 Federal Register / Vol. 73, No. 193 / Friday, October 3, 2008 / Rules and Regulations reported values on its FR 2910a report in order to qualify for reduced reporting will be shifted to an FR 2900 reporting panel. Notice and Regulatory Flexibility Act. The provisions of 5 U.S.C. 553(b) relating to notice of proposed rulemaking have not been followed in connection with the adoption of these amendments. The amendments involve expected, ministerial adjustments prescribed by statute and by the Board’s policy concerning reporting practices. The adjustments in the reserve requirement exemption amount, the low reserve tranche, the nonexempt deposit cutoff level, and the reduced reporting limit serve to reduce regulatory burdens on depository institutions. Accordingly, the Board finds good cause for determining, and so determines, that notice in accordance with 5 U.S.C. 553(b) is unnecessary. Consequently, the provisions of the Regulatory Flexibility Act, 5 U.S.C. 601, do not apply to these amendments. ■ List of Subjects in 12 CFR Part 204 ■ Banks, banking, Reporting and recordkeeping requirements. § 204.9 For the reasons set forth in the preamble, the Board is amending 12 CFR part 204 as follows: ■ Category By order of the Board of Governors of the Federal Reserve System, acting through the Director of the Division of Monetary Affairs under delegated authority, September 25, 2008. Jennifer J. Johnson, Secretary of the Board. [FR Doc. E8–22944 Filed 10–2–08; 8:45 am] BILLING CODE 6210–01–P SMALL BUSINESS ADMINISTRATION 13 CFR Part 124 RIN 3245–AF79 Small Disadvantaged Business Program U.S. Small Business Administration. ACTION: Interim final rule, with request for comments. jlentini on PROD1PC65 with RULES AGENCY: SUMMARY: This rule changes the requirements relating to which firms may certify their status as small disadvantaged businesses (SDBs) for purposes of federal prime contracts and subcontracts. Currently, only those firms that have applied to and been certified as SDBs by SBA may certify themselves to be SDBs for federal prime and subcontracts. This rule allows firms to self-represent their status for subcontracting purposes without first receiving any SDB certification. It also recognizes that the benefits of being an SDB for federal prime contracts has been greatly diminished over the past 17:58 Oct 02, 2008 Jkt 217001 1. The authority citation for part 204 continues to read as follows: Authority: 12 U.S.C. 248(a), 248(c), 371a, 461, 601, 611, and 3105. 2. Section 204.9 is revised to read as follows: Reserve requirement ratios. The following reserve requirement ratios are prescribed for all depository institutions, banking Edge and agreement corporations, and United States branches and agencies of foreign banks: Reserve requirement Net transaction accounts: $0 to $10.3 million ............................................................................. Over $10.3 million and up to $44.4 million ....................................... Over $44.4 million ............................................................................. Nonpersonal time deposits ....................................................................... Eurocurrency liabilities .............................................................................. VerDate Aug<31>2005 PART 204—RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS (REGULATION D) 0 percent of amount. 3 percent of amount. $1,023,000 plus 10 percent of amount over $44.4 million. 0 percent. 0 percent. years, and shifts the responsibility of identifying firms as SDBs for federal prime contracts to those limited agencies that have authority and chose to use price evaluation adjustments to SDBs. Effective Date: This rule is effective October 3, 2008. Comment Date: Comments must be received on or before November 3, 2008. ADDRESSES: You may submit comments, identified by RIN: 3245–AF79, by any of the following methods: • Federal eRulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments. • Mail, for paper, disk, or CD/ROM submissions: Joseph Loddo, Associate Administrator, Office of Business Development, 409 Third Street, SW., Mail Code, Washington, DC 20416. • Hand Delivery/Courier: Joseph Loddo, Associate Administrator, Office of Business Development, 409 Third Street, SW., Washington, DC 20416. SBA will post all comments on www.regulations.gov. If you wish to submit confidential business information (CBI) as defined in the User Notice at www.regulations.gov, please submit the information to LeAnn Delaney, Deputy Director, Office of Business Development, 409 Third Street, SW., Washington, DC 20416, or send an e-mail to LeAnn.Delaney@sba.gov. Highlight the information that you consider to be CBI and explain why you believe SBA should hold this information as DATES: PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 confidential. SBA will review the information and make the final determination of whether it will publish the information or not. FOR FURTHER INFORMATION CONTACT: LeAnn Delaney, Deputy Director, Office of Business Development, at (202) 205– 5852, or LeAnn.Delaney@sba.gov. SUPPLEMENTARY INFORMATION: I. Background Section 1207 of the 1987 Defense Authorization Act (Pub. L. 99–661, codified in 10 U.S.C. 2323) for the first time established a 5 percent goal for all Department of Defense (DOD) contracts to be awarded to SDBs. To achieve the 5 percent SDB goal, the statute authorized the award of contracts to SDBs using less than full and open competitive procedures. Specifically, DOD developed through regulation a practice known as the ‘‘rule of two’’ for SDBs. Pursuant to the ‘‘rule of two,’’ whenever a contracting officer identified two or more SDBs that it believed could perform a specific procurement at a fair and reasonable price, the contracting officer was required to set the contract aside for bidding exclusively among SDBs. In addition, SDBs would receive a 10% price evaluation adjustment in the evaluation of offers in an unrestricted or full and open competition. The DOD’s SDB program was a self-certification program. SBA established eligibility criteria, but firms certified their SDB status for particular procurements. SBA E:\FR\FM\03OCR1.SGM 03OCR1

Agencies

[Federal Register Volume 73, Number 193 (Friday, October 3, 2008)]
[Rules and Regulations]
[Pages 57488-57490]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-22944]


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FEDERAL RESERVE SYSTEM

12 CFR Part 204

[Regulation D; Docket No. R-1297]


Reserve Requirements of Depository Institutions

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Board is amending Regulation D, Reserve Requirements of 
Depository Institutions, to reflect the annual indexing of the reserve 
requirement exemption amount and the low reserve tranche for 2009. The 
Regulation D amendments set the amount of total reservable liabilities 
of each depository institution that is subject to a zero percent 
reserve requirement in 2009 at $10.3 million, up from $9.3 million in 
2008. This amount is known as the reserve requirement exemption amount. 
The Regulation D amendment also sets the amount of net transaction 
accounts at each depository institution that is subject to a three 
percent reserve requirement in 2009 at $44.4 million, up from $43.9 
million in 2008. This amount is known as the low reserve tranche. The 
adjustments to both of these amounts are derived using statutory 
formulas specified in the Federal Reserve Act.
    The Board is also announcing changes in two other amounts, the 
nonexempt deposit cutoff level and the reduced reporting limit, that 
are used to determine the frequency at which depository institutions 
must submit deposit reports.

DATES: Effective date: November 3, 2008.
    Compliance dates: For depository institutions that report deposit 
data weekly, the new low reserve tranche and reserve requirement 
exemption amount will apply to the fourteen-day reserve computation 
period that begins Tuesday, December 2, 2008, and the corresponding 
fourteen-day reserve maintenance period that begins Thursday, January 
1, 2009. For depository institutions that report deposit data 
quarterly, the new low reserve tranche and reserve requirement 
exemption amount will apply to the seven-day reserve computation period 
that begins Tuesday, December 16, 2008, and the corresponding seven-day 
reserve maintenance period that begins Thursday, January 15, 2009. For 
all depository institutions, these new values of the nonexempt deposit 
cutoff level, the reserve requirement exemption amount, and the reduced 
reporting limit will be used to determine the frequency at which a 
depository institution submits deposit reports effective in either June 
or September 2009.

FOR FURTHER INFORMATION CONTACT: Sophia Allison, Senior Counsel (202/
452-3565), Legal Division, or Margaret Gillis DeBoer, Senior Financial 
Analyst (202/452-3139), Division of Monetary Affairs; for users of 
Telecommunications Device for the Deaf (TDD) only, contact (202/263-
4869); Board of Governors of the Federal Reserve System, 20th and C 
Streets, NW., Washington, DC 20551.

SUPPLEMENTARY INFORMATION: Section 19(b)(2) of the Federal Reserve Act 
(12 U.S.C. 461(b)(2)) requires each depository institution to maintain 
reserves against its transaction accounts and nonpersonal time 
deposits, as prescribed by Board regulations, for the purpose of 
implementing monetary policy.
    Section 11(a)(2) of the Federal Reserve Act (12 U.S.C. 248(a)(2)) 
authorizes the Board to require reports of liabilities and assets from 
depository institutions to enable the Board to conduct monetary policy. 
The Board's actions with respect to each of these provisions are 
discussed in turn below.

1. Reserve Requirements

    Pursuant to section 19(b) of the Federal Reserve Act (Act), 
transaction account balances maintained at each depository institution 
are subject to reserve requirement ratios of zero, three, or ten 
percent. Section 19(b)(11)(A) of the Act (12 U.S.C. 461(b)(11)(A)) 
provides that a zero percent reserve

[[Page 57489]]

requirement shall apply at each depository institution to total 
reservable liabilities that do not exceed a certain amount, known as 
the reserve requirement exemption amount. Section 19(b)(11)(B) provides 
that, before December 31 of each year, the Board shall issue a 
regulation adjusting the reserve requirement exemption amount for the 
next calendar year if total reservable liabilities held at all 
depository institutions increase from one year to the next. No 
adjustment is made to the reserve requirement exemption amount if total 
reservable liabilities held at all depository institutions should 
decrease during the applicable time period. The Act requires the 
percentage increase in the reserve requirement exemption amount to be 
80 percent of the increase in total reservable liabilities of all 
depository institutions over the one-year period that ends on the June 
30 prior to the adjustment.
    Total reservable liabilities of all depository institutions 
increased 13.0 percent (from $4,211 billion to $4,760 billion) between 
June 30, 2007, and June 30, 2008. Accordingly, the Board is amending 
Regulation D to increase the reserve requirement exemption amount by 
$1.0 million, from $9.3 million for 2008 to $10.3 million for 2009.\1\
---------------------------------------------------------------------------

    \1\ Consistent with Board practice, the low reserve tranche and 
reserve requirement exemption amounts have been rounded to the 
nearest $0.1 million.
---------------------------------------------------------------------------

    Pursuant to Section 19(b)(2) of the Act (12 U.S.C. 461(b)(2)), 
transaction account balances maintained at each depository institution 
over the reserve requirement exemption amount and up to a certain 
amount, known as the low reserve tranche, are subject to a three 
percent reserve requirement. Transaction account balances over the low 
reserve tranche are subject to a ten percent reserve requirement. 
Section 19(b)(2) also provides that, before December 31 of each year, 
the Board shall issue a regulation adjusting the low reserve tranche 
for the next calendar year. The Act requires the adjustment in the low 
reserve tranche to be 80 percent of the percentage increase or decrease 
in total transaction accounts of all depository institutions over the 
one-year period that ends on the June 30 prior to the adjustment.
    Net transaction accounts of all depository institutions increased 
1.4 percent (from $646 billion to $655 billion) between June 30, 2007 
and June 30, 2008. Accordingly, the Board is amending Regulation D (12 
CFR part 204) to increase the low reserve tranche for net transaction 
accounts by $0.5 million, from $43.9 million for 2008 to $44.4 million 
for 2009.
    For depository institutions that file deposit reports weekly, the 
new low reserve tranche and reserve requirement exemption amount will 
be effective for the fourteen-day reserve computation period beginning 
Tuesday, December 2, 2008, and for the corresponding fourteen-day 
reserve maintenance period beginning Thursday, January 1, 2009. For 
depository institutions that report quarterly, the new low reserve 
tranche and reserve requirement exemption amount will be effective for 
the seven-day reserve computation period beginning Tuesday, December 
16, 2008, and for the corresponding seven-day reserve maintenance 
period beginning Thursday, January 15, 2009.

2. Deposit Reports

    Section 11(b)(2) of the Federal Reserve Act authorizes the Board to 
require depository institutions to file reports of their liabilities 
and assets as the Board may determine to be necessary or desirable to 
enable it to discharge its responsibility to monitor and control the 
monetary and credit aggregates. The Board screens depository 
institutions each year and assigns them to one of four deposit 
reporting panels (weekly reporters, quarterly reporters, annual 
reporters, or nonreporters). The panel assignment for annual reporters 
is effective in June of the screening year; the panel assignment for 
weekly and quarterly reporters is effective in September of the 
screening year.
    In order to ease reporting burden, the Board permits smaller 
depository institutions to submit deposit reports less frequently than 
larger depository institutions. The Board permits depository 
institutions with net transaction accounts above the reserve 
requirement exemption amount but total transaction accounts, savings 
deposits, and small time deposits below a specified level (the 
``nonexempt deposit cutoff'') to report deposit data quarterly. 
Depository institutions with net transaction accounts above the reserve 
requirement exemption amount but with total transaction accounts, 
savings deposits, and small time deposits above the nonexempt deposit 
cutoff are required to report deposit data weekly. The Board requires 
certain large depository institutions to report weekly regardless of 
the level of their net transaction accounts if the depository 
institution's total transaction accounts, savings deposits, and small 
time deposits exceeds a specified level (the ``reduced reporting 
limit''). The nonexempt deposit cutoff level and the reduced reporting 
limit are adjusted annually, by an amount equal to 80 percent of the 
increase, if any, in total transaction accounts, savings deposits, and 
small time deposits of all depository institutions over the one-year 
period that ends on the June 30 prior to the adjustment.
    From June 30, 2007 to June 30, 2008, total transaction accounts, 
savings deposits, and small time deposits at all depository 
institutions increased 5 percent (from $6,144 billion to $6,443 
billion). Accordingly, the Board is increasing the nonexempt deposit 
cutoff level to $224.6 million for 2009. The Board is also increasing 
the reduced reporting limit to $1,258 million for 2009.\2\
---------------------------------------------------------------------------

    \2\ Consistent with Board practice, the nonexempt deposit cutoff 
level has been rounded to the nearest $0.1 million, and the reduced 
reporting limit has been rounded to the nearest $1 million.
---------------------------------------------------------------------------

    Beginning in 2009, the boundaries of the four deposit reporting 
panels will be defined as follows. Those depository institutions with 
net transaction accounts over $10.3 million (the reserve requirement 
exemption amount) or with total transaction accounts, savings deposits, 
and small time deposits greater than or equal to $1,258 million (the 
reduced reporting limit) are subject to detailed reporting, and must 
file a Report of Transaction Accounts, Other Deposits and Vault Cash 
(FR 2900 report) either weekly or quarterly. Of this group, those with 
total transaction accounts, savings deposits, and small time deposits 
greater than or equal to $224.6 million (the nonexempt deposit cutoff 
level) are required to file the FR 2900 report each week, while those 
with total transaction accounts, savings deposits, and small time 
deposits less than $224.6 million are required to file the FR 2900 
report each quarter. Those depository institutions with net transaction 
accounts less than or equal to $10.3 million (the reserve requirement 
exemption amount) and with total transaction accounts, savings 
deposits, and small time deposits less than $1,258 million (the reduced 
reporting limit) are eligible for reduced reporting, and must either 
file a deposit report annually or not at all. Of this group, those with 
total deposits greater than $10.3 million (but with total transaction 
accounts, savings deposits, and small time deposits less than $1,258 
million) are required to file the Annual Report of Deposits and 
Reservable Liabilities (FR 2910a) report annually, while those with 
total deposits less than or equal to $10.3 million are not required to 
file a deposit report. A depository institution that adjusts

[[Page 57490]]

reported values on its FR 2910a report in order to qualify for reduced 
reporting will be shifted to an FR 2900 reporting panel.
    Notice and Regulatory Flexibility Act. The provisions of 5 U.S.C. 
553(b) relating to notice of proposed rulemaking have not been followed 
in connection with the adoption of these amendments. The amendments 
involve expected, ministerial adjustments prescribed by statute and by 
the Board's policy concerning reporting practices. The adjustments in 
the reserve requirement exemption amount, the low reserve tranche, the 
nonexempt deposit cutoff level, and the reduced reporting limit serve 
to reduce regulatory burdens on depository institutions. Accordingly, 
the Board finds good cause for determining, and so determines, that 
notice in accordance with 5 U.S.C. 553(b) is unnecessary. Consequently, 
the provisions of the Regulatory Flexibility Act, 5 U.S.C. 601, do not 
apply to these amendments.

List of Subjects in 12 CFR Part 204

    Banks, banking, Reporting and recordkeeping requirements.

0
For the reasons set forth in the preamble, the Board is amending 12 CFR 
part 204 as follows:

PART 204--RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS 
(REGULATION D)

0
1. The authority citation for part 204 continues to read as follows:

    Authority: 12 U.S.C. 248(a), 248(c), 371a, 461, 601, 611, and 
3105.


0
2. Section 204.9 is revised to read as follows:


Sec.  204.9  Reserve requirement ratios.

    The following reserve requirement ratios are prescribed for all 
depository institutions, banking Edge and agreement corporations, and 
United States branches and agencies of foreign banks:

------------------------------------------------------------------------
                Category                       Reserve requirement
------------------------------------------------------------------------
Net transaction accounts:
    $0 to $10.3 million................  0 percent of amount.
    Over $10.3 million and up to $44.4   3 percent of amount.
     million.
    Over $44.4 million.................  $1,023,000 plus 10 percent of
                                          amount over $44.4 million.
Nonpersonal time deposits..............  0 percent.
Eurocurrency liabilities...............  0 percent.
------------------------------------------------------------------------


    By order of the Board of Governors of the Federal Reserve 
System, acting through the Director of the Division of Monetary 
Affairs under delegated authority, September 25, 2008.
Jennifer J. Johnson,
Secretary of the Board.
 [FR Doc. E8-22944 Filed 10-2-08; 8:45 am]
BILLING CODE 6210-01-P