Reserve Requirements of Depository Institutions, 68064-68066 [2011-28048]
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Federal Register / Vol. 76, No. 213 / Thursday, November 3, 2011 / Rules and Regulations
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List of Subjects in 9 CFR Part 381
Food grades and standards, Poultry
and poultry products.
For the reasons stated in the
preamble, FSIS amends 9 CFR part 381
as follows:
PART 381—POULTRY PRODUCTS
INSPECTION REGULATIONS
1. The authority citation for part 381
continues to read as follows:
■
Authority: 7 U.S.C. 138f; 7 U.S.C. 450; 21
U.S.C. 451–470; 7 CFR 2.18, 2.53.
2. Section 381.170 is amended by
revising paragraph (a) to read as follows:
■
srobinson on DSK4SPTVN1PROD with RULES
§ 381.170 Standards for kinds and classes,
and for cuts of raw poultry.
(a) The following standards specify
the various classes of the specified
kinds of poultry and the requirements
for each class:
(1) Chickens—(i) Rock Cornish game
hen or Cornish game hen. A ‘‘Rock
Cornish game hen’’ or ‘‘Cornish game
hen’’ is a young, immature chicken (less
than 5 weeks of age), of either sex, with
a ready-to-cook carcass weight of not
more than 2 pounds.
(ii) Broiler or fryer. A ‘‘broiler’’ or
‘‘fryer’’ is a young chicken (less than 10
weeks of age), of either sex, that is
tender-meated with soft, pliable,
smooth-textured skin and flexible
breastbone cartilage.
(iii) Roaster or roasting chicken. A
‘‘roaster’’ or ‘‘roasting chicken’’ is a
young chicken (between 8 and 12 weeks
of age), of either sex, with a ready-tocook carcass weight of 5 pounds or
more, that is tender-meated with soft,
pliable, smooth-textured skin and
breastbone cartilage that is somewhat
less flexible than that of a broiler or
fryer.
(iv) Capon. A ‘‘capon’’ is a surgically
neutered male chicken (less than 4
months of age) that is tender-meated
with soft, pliable, smooth-textured skin.
(v) Hen, fowl, baking chicken, or
stewing chicken. A ‘‘hen,’’ ‘‘fowl,’’
‘‘baking chicken,’’ or ‘‘stewing chicken’’
is an adult female chicken (more than
10 months of age) with meat less tender
than that of a roaster or roasting chicken
and a nonflexible breastbone tip.
(vi) Cock or rooster. A ‘‘cock’’ or
‘‘rooster’’ is an adult male chicken with
coarse skin, toughened and darkened
meat, and a nonflexible breastbone tip.
(2) Turkeys—(i) Fryer-roaster turkey.
A ‘‘fryer-roaster turkey’’ is an immature
turkey (less than 12 weeks of age), of
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either sex, that is tender-meated with
soft, pliable, smooth-textured skin, and
flexible breastbone cartilage.
(ii) Young turkey. A ‘‘young turkey’’ is
a turkey (less than 8 months of age), of
either sex, that is tender-meated with
soft, pliable, smooth-textured skin and
breastbone cartilage that is less flexible
than that of a fryer-roaster turkey.
(iii) Yearling turkey. A ‘‘yearling
turkey’’ is a turkey (less than 15 months
of age), of either sex, that is reasonably
tender-meated with reasonably smoothtextured skin.
(iv) Mature or old (hen or tom) turkey.
A ‘‘mature turkey’’ or ‘‘old turkey’’ is an
adult turkey (more than 15 months of
age), of either sex, with coarse skin and
toughened flesh. Sex designation is
optional.
(3) Ducks—(i) Duckling. A ‘‘duckling’’
is a young duck (less than 8 weeks of
age), of either sex, that is tender-meated
and has a soft bill and soft windpipe.
(ii) Roaster duck. A ‘‘roaster duck’’ is
a young duck (less than 16 weeks of
age), of either sex, that is tender-meated
and has a bill that is not completely
hardened and a windpipe that is easily
dented.
(iii) Mature duck or old duck. A
‘‘mature duck’’ or an ‘‘old duck’’ is an
adult duck (more than 6 months of age),
of either sex, with toughened flesh, a
hardened bill, and a hardened
windpipe.
(4) Geese—(i) Young goose. A ‘‘young
goose’’ is an immature goose, of either
sex, that is tender-meated and has a
windpipe that is easily dented.
(ii) Mature goose or old goose. A
‘‘mature goose’’ or ‘‘old goose’’ is an
adult goose, of either sex, that has
toughened flesh and a hardened
windpipe.
(5) Guineas—(i) Young guinea. A
‘‘young guinea’’ is an immature guinea,
of either sex, that is tender-meated and
has a flexible breastbone cartilage.
(ii) Mature guinea or old guinea. A
‘‘mature guinea’’ or ‘‘old guinea’’ is an
adult guinea, of either sex, that has
toughened flesh and a non-flexible
breastbone.
*
*
*
*
*
Done at Washington, DC on October 27,
2011.
Alfred V. Almanza,
Administrator.
[FR Doc. 2011–28525 Filed 11–2–11; 8:45 am]
BILLING CODE 3410–DM–P
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FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Regulation D; Docket No. R–1435]
RIN No. 7100 AD 85
Reserve Requirements of Depository
Institutions
Board of Governors of the
Federal Reserve System.
ACTION: Final rule.
AGENCY:
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 2012. 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 2012 at $11.5 million
(up from $10.7 million in 2011). This
amount is known as the reserve
requirement exemption amount. The
Regulation D amendments also set the
amount of net transaction accounts at
each depository institution that is
subject to a three percent reserve
requirement in 2012 at $71.0 million
(up from $58.8 million in 2011). 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: December 5, 2011.
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, November 29, 2011, and the
corresponding fourteen-day reserve
maintenance period that begins
Thursday, December 29, 2011. 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 20,
2011, and the corresponding seven-day
reserve maintenance period that begins
Thursday, January 19, 2012. For all
depository institutions, these new
values of the nonexempt deposit cutoff
level, the reserve requirement
SUMMARY:
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Federal Register / Vol. 76, No. 213 / Thursday, November 3, 2011 / Rules and Regulations
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 2012.
FOR FURTHER INFORMATION CONTACT:
Sophia H. Allison, Senior Counsel (202)
452–3565, Legal Division, or Christian
S. Miller, Financial Analyst (202) 452–
3769, 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.
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.
SUPPLEMENTARY INFORMATION:
srobinson on DSK4SPTVN1PROD with RULES
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
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.
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Total reservable liabilities of all
depository institutions increased about
9.4 percent (from $4,928 billion to
$5,392 billion) between June 30, 2010,
and June 30, 2011. Accordingly, the
Board is amending Regulation D to set
the reserve requirement exemption
amount for 2012 at $11.5 million, an
increase of $0.8 million from its level in
2011.1
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 25.9
percent (from $944 billion to $1,188
billion) between June 30, 2010 and June
30, 2011. Accordingly, the Board is
amending Regulation D to increase the
low reserve tranche for net transaction
accounts by $12.2 million, from $58.8
million for 2011 to $71.0 million for
2012.
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, November
29, 2011, and for the corresponding
fourteen-day reserve maintenance
period beginning Thursday, December
29, 2011. 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
20, 2011, and for the corresponding
seven-day reserve maintenance period
beginning Thursday, January 19, 2012.
2. Deposit Reports
Section 11(b)(2) of the Federal
Reserve Act authorizes the Board to
1 Consistent with Board practice, the low reserve
tranche and reserve requirement exemption
amounts have been rounded to the nearest $0.1
million.
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68065
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, 2010 to June 30, 2011,
total transaction accounts, savings
deposits, and small time deposits at all
depository institutions increased 9.3
percent (from $7,473 billion to $8,171
billion). Accordingly, the Board is
increasing the nonexempt deposit cutoff
level by $18.9 million to $ 271.5 million
for 2012 (up from $252.6 million in
2011). The Board is also increasing the
reduced reporting limit by $106 million
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68066
Federal Register / Vol. 76, No. 213 / Thursday, November 3, 2011 / Rules and Regulations
to $1.521 billion in 2012 (up from
$1.415 billion for 2011).2
Beginning in 2012, the boundaries of
the four deposit reporting panels will be
defined as follows. Those depository
institutions with net transaction
accounts over $11.5 million (the reserve
requirement exemption amount) or with
total transaction accounts, savings
deposits, and small time deposits
greater than or equal to $1.521 billion
(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
$271.5 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 $271.5 million are required to file
the FR 2900 report each quarter. Those
depository institutions with net
transaction accounts less than or equal
to $11.5 million (the reserve
requirement exemption amount) and
with total transaction accounts, savings
deposits, and small time deposits less
than $1.521 billion (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 $11.5 million (but with total
transaction accounts, savings deposits,
and small time deposits less than $1.521
billion) 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 $11.5 million are not
required to file a deposit report. A
depository institution that adjusts
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.
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)
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 204.4(f) is revised to read as
follows:
■
§ 204.4
Computation of required reserves.
*
*
*
*
*
(f) For all depository institutions,
Edge and Agreement corporations, and
United States branches and agencies of
foreign banks, required reserves are
computed by applying the reserve
requirement ratios below to net
transaction accounts, nonpersonal time
deposits, and Eurocurrency liabilities of
the institution during the computation
period.
Reservable liability
Reserve requirement
Net Transaction Accounts:
$0 to reserve requirement exemption amount ($11.5 million) ...................................................................
Over reserve requirement exemption amount $11.5 million) and up to low reserve tranche ($71.0 million).
Over low reserve tranche ($71.0 million) ...................................................................................................
Nonpersonal time deposits ................................................................................................................................
Eurocurrency liabilities .......................................................................................................................................
Jennifer J. Johnson,
Secretary of the Board.
DEPARTMENT OF HOMELAND
SECURITY
[FR Doc. 2011–28048 Filed 11–2–11; 8:45 am]
U.S. Customs and Border Protection
BILLING CODE 6210–01–P
19 CFR Part 4
[CBP Dec. 11–21]
Addition of the Cook Islands to the List
of Nations Entitled to Special Tonnage
Tax Exemption
U.S. Customs and Border
Protection, Department of Homeland
Security.
ACTION: Final rule.
srobinson on DSK4SPTVN1PROD with RULES
AGENCY:
The Department of State has
informed U.S. Customs and Border
SUMMARY:
2 Consistent with Board practice, the nonexempt
deposit cutoff level has been rounded to the nearest
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16:15 Nov 02, 2011
Jkt 226001
0 percent of amount.
3 percent of amount.
$1,785,000 plus 10 percent of
amount over $71.0 million.
0 percent.
0 percent.
Protection (CBP) that discriminating or
countervailing duties are not imposed
by the government of the Cook Islands
on vessels owned by citizens of the
United States. Accordingly, vessels of
the Cook Islands are exempt from
special tonnage taxes and light money
in ports of the United States. This
document amends the CBP regulations
by adding the Cook Islands to the list of
nations whose vessels are exempt from
payment of any higher tonnage duties
than are applicable to vessels of the
United States and from the payment of
light money.
This amendment is effective
November 3, 2011. The exemption from
special tonnage taxes and light money
DATES:
$0.1 million, and the reduced reporting limit has
been rounded to the nearest $1 million.
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]]>Agencies
[Federal Register Volume 76, Number 213 (Thursday, November 3, 2011)]
[Rules and Regulations]
[Pages 68064-68066]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-28048]
=======================================================================
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Regulation D; Docket No. R-1435]
RIN No. 7100 AD 85
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 2012. 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 2012 at $11.5 million (up from $10.7 million in
2011). This amount is known as the reserve requirement exemption
amount. The Regulation D amendments also set the amount of net
transaction accounts at each depository institution that is subject to
a three percent reserve requirement in 2012 at $71.0 million (up from
$58.8 million in 2011). 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: December 5, 2011.
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, November 29, 2011, and the corresponding
fourteen-day reserve maintenance period that begins Thursday, December
29, 2011. 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 20, 2011, and the corresponding seven-day
reserve maintenance period that begins Thursday, January 19, 2012. For
all depository institutions, these new values of the nonexempt deposit
cutoff level, the reserve requirement
[[Page 68065]]
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 2012.
FOR FURTHER INFORMATION CONTACT: Sophia H. Allison, Senior Counsel
(202) 452-3565, Legal Division, or Christian S. Miller, Financial
Analyst (202) 452-3769, 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.
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 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 about 9.4 percent (from $4,928 billion to $5,392 billion)
between June 30, 2010, and June 30, 2011. Accordingly, the Board is
amending Regulation D to set the reserve requirement exemption amount
for 2012 at $11.5 million, an increase of $0.8 million from its level
in 2011.\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
25.9 percent (from $944 billion to $1,188 billion) between June 30,
2010 and June 30, 2011. Accordingly, the Board is amending Regulation D
to increase the low reserve tranche for net transaction accounts by
$12.2 million, from $58.8 million for 2011 to $71.0 million for 2012.
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, November 29, 2011, and for the corresponding fourteen-day
reserve maintenance period beginning Thursday, December 29, 2011. 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
20, 2011, and for the corresponding seven-day reserve maintenance
period beginning Thursday, January 19, 2012.
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, 2010 to June 30, 2011, total transaction accounts,
savings deposits, and small time deposits at all depository
institutions increased 9.3 percent (from $7,473 billion to $8,171
billion). Accordingly, the Board is increasing the nonexempt deposit
cutoff level by $18.9 million to $ 271.5 million for 2012 (up from
$252.6 million in 2011). The Board is also increasing the reduced
reporting limit by $106 million
[[Page 68066]]
to $1.521 billion in 2012 (up from $1.415 billion for 2011).\2\
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\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.
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Beginning in 2012, the boundaries of the four deposit reporting
panels will be defined as follows. Those depository institutions with
net transaction accounts over $11.5 million (the reserve requirement
exemption amount) or with total transaction accounts, savings deposits,
and small time deposits greater than or equal to $1.521 billion (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 $271.5 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 $271.5 million are required to file the FR 2900
report each quarter. Those depository institutions with net transaction
accounts less than or equal to $11.5 million (the reserve requirement
exemption amount) and with total transaction accounts, savings
deposits, and small time deposits less than $1.521 billion (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 $11.5 million (but with total transaction
accounts, savings deposits, and small time deposits less than $1.521
billion) 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 $11.5 million are not required to
file a deposit report. A depository institution that adjusts 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.
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 204.4(f) is revised to read as follows:
Sec. 204.4 Computation of required reserves.
* * * * *
(f) For all depository institutions, Edge and Agreement
corporations, and United States branches and agencies of foreign banks,
required reserves are computed by applying the reserve requirement
ratios below to net transaction accounts, nonpersonal time deposits,
and Eurocurrency liabilities of the institution during the computation
period.
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Reservable liability Reserve requirement
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Net Transaction Accounts:
$0 to reserve requirement exemption 0 percent of amount.
amount ($11.5 million).
Over reserve requirement exemption 3 percent of amount.
amount $11.5 million) and up to low
reserve tranche ($71.0 million).
Over low reserve tranche ($71.0 $1,785,000 plus 10 percent
million). of amount over $71.0
million.
Nonpersonal time deposits.................. 0 percent.
Eurocurrency liabilities................... 0 percent.
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Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 2011-28048 Filed 11-2-11; 8:45 am]
BILLING CODE 6210-01-P
