Reserve Requirements of Depository Institutions: Reserves Simplification, 66361 [2012-26731]

Agencies

• FEDERAL RESERVE SYSTEM

[Federal Register Volume 77, Number 214 (Monday, November 5, 2012)]
[Rules and Regulations]
[Page 66361]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-26731]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
week.

========================================================================


Federal Register / Vol. 77, No. 214 / Monday, November 5, 2012 / 
Rules and Regulations

[[Page 66361]]



FEDERAL RESERVE SYSTEM

12 CFR Part 204

[Regulation D; Docket No. R-1433]
RIN 7100 AD 83


Reserve Requirements of Depository Institutions: Reserves 
Simplification

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule; delay of effective date.

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

SUMMARY: The Board is delaying the effective date for implementation of 
certain provisions of its final rule amending the Board's Regulation D 
(Reserve Requirements of Depository Institutions) published in the 
Federal Register on April 12, 2012. The final rule's effective date is 
being delayed to allow for further development and testing of the 
automated systems necessary to support the implementation of certain 
provisions.

DATES: The effective date of amendments to 12 CFR 204.2(z), (ff), (gg) 
and (hh); Sec. Sec.  204.5(b)(2), (d)(4)(i), (e)(1) and (e)(2); 
204.6(a) and (b); and 204.10(b)(1), (b)(3), and (c), published April 
12, 2012, at 77 FR 21846, is delayed from January 24, 2013, until June 
27, 2013.

FOR FURTHER INFORMATION CONTACT: Sophia Allison, Senior Counsel, (202) 
452-3565, or Kara Handzlik, Senior Attorney, (202) 452-3852, Legal 
Division; or Margaret Gillis DeBoer, Assistant Director, (202) 452-
3139, or Karen Brooks, Senior Business Analyst (202) 973-6189, 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: The Board published its final rule amending 
Regulation D, 12 CFR part 204, on April 12, 2012, (77 FR 21846) to 
implement the following four simplifications related to the 
administration of reserve requirements:
    1. Create a common two-week maintenance period for all depository 
institutions;
    2. Create a penalty-free band around reserve balance requirements 
in place of using carryover and routine penalty waivers;
    3. Discontinue as-of adjustments related to deposit report 
revisions and replace all other as-of adjustments with direct 
compensation; and
    4. Eliminate the contractual clearing balance program.
    The Board announced in the final rule that it would implement the 
elimination of the contractual clearing balance program and the use of 
as-of adjustments earlier than it would implement the common 
maintenance period and the penalty-free band. The Board implemented the 
elimination of the contractual clearing balance program and the 
issuance of as-of adjustments effective July 12, 2012. The Board 
announced January 24, 2013, as the implementation date for the common 
two-week maintenance period, the penalty-free band, and the elimination 
of carryover and routine penalty waivers, as reflected in the following 
revised sections of Regulation D: Sec. Sec.  204.2(z), (ff), (gg) and 
(hh); Sec. Sec.  204.5(b)(2), (d)(4)(i), (e)(1) and (e)(2); Sec. Sec.  
204.6 (a) and (b); and Sec. Sec.  204.10 (b)(1), (b)(3), and (c). The 
Board also announced that it would provide public notice no later than 
November 1, 2012, if the January 24, 2013, date will be delayed.
    The Board is delaying until June 27, 2013, the January 24, 2013, 
date to allow the Federal Reserve to further develop and test the 
automated systems necessary to support the common two-week maintenance 
period, the penalty-free band, and the elimination of carry-over and 
routine penalty waivers. Further development and testing are necessary 
to ensure the effective operation of the automated systems. This delay 
will also facilitate a smooth transition for affected institutions by 
allowing them more time to develop their internal systems and prepare 
for implementation of these revisions. Moreover, the delay will not 
prejudice or create additional burden for affected institutions or 
Federal Reserve Banks.

Administrative Law Matters

Administrative Procedure Act

    Under the Administrative Procedure Act (APA), an agency may, for 
good cause, find that notice and public comment are impracticable, 
unnecessary, or contrary to the public interest. 5 U.S.C. 553(b)(B). As 
noted above, the Board previously announced that it may delay the 
January 24, 2013, effective date for certain provisions of the final 
rule but would provide notice of such a delay by November 1, 2012. 
Moreover, the revised effective date does not impose additional burden 
on affected institutions and will provide those institutions with 
additional time for implementation. For these reasons, along with the 
reasons noted above, the Board has determined that there is good cause 
to find that publishing a notice of proposed rulemaking and providing 
opportunity for public comment are unnecessary.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) does not apply to a rulemaking 
where a general notice of proposed rulemaking is not required. 5 U.S.C. 
603 and 604. As noted above, the Board has determined that it is 
unnecessary to publish a general notice of proposed rulemaking for this 
final rule. Accordingly, the RFA's requirements relating to an initial 
and final regulatory flexibility analysis do not apply.

Paperwork Reduction Act

    The Board has reviewed the final rule in accordance with the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3506; 5 CFR 1320). No 
collections of information pursuant to the Paperwork Reduction Act are 
contained in the final rule.


    By order of the Board of Governors of the Federal Reserve 
System, October 25, 2012.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2012-26731 Filed 11-2-12; 8:45 am]
BILLING CODE 6210-01-P