Regulation D: Reserve Requirements of Depository Institutions, 49473-49475 [2018-21435]

Download as PDF Federal Register / Vol. 83, No. 191 / Tuesday, October 2, 2018 / Rules and Regulations amozie on DSK3GDR082PROD with RULES secondary credit. The amendments to Regulation A reflect these rate changes. The 1⁄4 percentage point increase in the primary credit rate was associated with an increase in the target range for the federal funds rate (from a target range of 13⁄4 to 2 percent to a target range of 2 to 21⁄4 percent) announced by the Federal Open Market Committee on September 26, 2018, as described in the Board’s amendment of its Regulation D regulations published elsewhere in this issue of the Federal Register. Administrative Procedure Act In general, the Administrative Procedure Act (‘‘APA’’) 1 imposes three principal requirements when an agency promulgates legislative rules (rules made pursuant to congressionally delegated authority): (1) Publication with adequate notice of a proposed rule; (2) followed by a meaningful opportunity for the public to comment on the rule’s content; and (3) publication of the final rule not less than 30 days before its effective date. The APA provides that notice and comment procedures do not apply if the agency for good cause finds them to be ‘‘unnecessary, impracticable, or contrary to the public interest.’’ 2 Section 553(d) of the APA also provides that publication at least 30 days prior to a rule’s effective date is not required for (1) a substantive rule which grants or recognizes an exemption or relieves a restriction; (2) interpretive rules and statements of policy; or (3) a rule for which the agency finds good cause for shortened notice and publishes its reasoning with the rule.3 The APA further provides that the notice, public comment, and delayed effective date requirements of 5 U.S.C. 553 do not apply ‘‘to the extent that there is involved . . . a matter relating to agency management or personnel or to public property, loans, grants, benefits, or contracts.’’ 4 Regulation A establishes the interest rates that the twelve Reserve Banks charge for extensions of primary credit and secondary credit. The Board has determined that the notice, public comment, and delayed effective date requirements of the APA do not apply to these final amendments to Regulation A for several reasons. The amendments involve a matter relating to loans and are therefore exempt under the terms of the APA. In addition, the Board has determined that notice, public comment, and delayed effective date U.S.C. 551 et seq. U.S.C. 553(b)(3)(A). 3 5 U.S.C. 553(d). 4 5 U.S.C. 553(a)(2) (emphasis added). would be unnecessary and contrary to the public interest because delay in implementation of changes to the rates charged on primary credit and secondary credit would permit insured depository institutions to profit improperly from the difference in the current rate and the announced increased rate. Finally, because delay would undermine the Board’s action in responding to economic data and conditions, the Board has determined that ‘‘good cause’’ exists within the meaning of the APA to dispense with the notice, public comment, and delayed effective date procedures of the APA with respect to the final amendments to Regulation A. Regulatory Flexibility Analysis The Regulatory Flexibility Act (‘‘RFA’’) does not apply to a rulemaking where a general notice of proposed rulemaking is not required.5 As noted previously, a general notice of proposed rulemaking is not required if the final rule involves a matter relating to loans. Furthermore, the Board has determined that it is unnecessary and contrary to the public interest 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 In accordance with the Paperwork Reduction Act (‘‘PRA’’) of 1995,6 the Board reviewed the final rule under the authority delegated to the Board by the Office of Management and Budget. The final rule contains no requirements subject to the PRA. List of Subjects in 12 CFR Part 201 Banks, Banking, Federal Reserve System, Reporting and recordkeeping. Authority and Issuance For the reasons set forth in the preamble, the Board is amending 12 CFR part 201 to read as follows: PART 201—EXTENSIONS OF CREDIT BY FEDERAL RESERVE BANKS (REGULATION A) 1. The authority citation for part 201 continues to read as follows: ■ Authority: 12 U.S.C. 248(i)–(j) and (s), 343 et seq., 347a, 347b, 347c, 348 et seq., 357, 374, 374a, and 461. 2. In § 201.51, paragraphs (a) and (b) are revised to read as follows: ■ 15 25 VerDate Sep<11>2014 16:20 Oct 01, 2018 Jkt 247001 55 U.S.C. 603, 604. U.S.C. 3506; see 5 CFR part 1320, appendix 6 44 A.1. PO 00000 Frm 00015 Fmt 4700 Sfmt 4700 49473 § 201.51 Interest rates applicable to credit extended by a Federal Reserve Bank.3 (a) Primary credit. The interest rate at each Federal Reserve Bank for primary credit provided to depository institutions under § 201.4(a) is 2.75 percent. (b) Secondary credit. The interest rate at each Federal Reserve Bank for secondary credit provided to depository institutions under § 201.4(b) is 3.25 percent. * * * * * By order of the Board of Governors of the Federal Reserve System, September 27, 2018. Ann Misback, Secretary of the Board. [FR Doc. 2018–21436 Filed 10–1–18; 8:45 am] BILLING CODE 6210–01–P FEDERAL RESERVE SYSTEM 12 CFR Part 204 [Docket No. R–1624] RIN 7100–AF 18 Regulation D: Reserve Requirements of Depository Institutions Board of Governors of the Federal Reserve System. ACTION: Final rule. AGENCY: The Board of Governors of the Federal Reserve System (‘‘Board’’) is amending Regulation D (Reserve Requirements of Depository Institutions) to revise the rate of interest paid on balances maintained to satisfy reserve balance requirements (‘‘IORR’’) and the rate of interest paid on excess balances (‘‘IOER’’) maintained at Federal Reserve Banks by or on behalf of eligible institutions. The final amendments specify that IORR is 2.20 percent and IOER is 2.20 percent, a 0.25 percentage point increase from their prior levels. The amendments are intended to enhance the role of such rates of interest in moving the Federal funds rate into the target range established by the Federal Open Market Committee (‘‘FOMC’’ or ‘‘Committee’’). DATES: Effective date: The amendments to part 204 (Regulation D) are effective October 2, 2018. Applicability date: The IORR and IOER rate changes were applicable on September 27, 2018. FOR FURTHER INFORMATION CONTACT: Sophia Allison, Senior Special Counsel SUMMARY: 3 The primary, secondary, and seasonal credit rates described in this section apply to both advances and discounts made under the primary, secondary, and seasonal credit programs, respectively. E:\FR\FM\02OCR1.SGM 02OCR1 49474 Federal Register / Vol. 83, No. 191 / Tuesday, October 2, 2018 / Rules and Regulations (202–452–3565), Legal Division, or Kristen Payne, Senior Financial Institution & Policy Analyst (202–452– 2872), or Mary-Frances Styczynski, Section Chief (202–452–3303), 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: I. Statutory and Regulatory Background For monetary policy purposes, section 19 of the Federal Reserve Act (‘‘the Act’’) imposes reserve requirements on certain types of deposits and other liabilities of depository institutions.1 Regulation D, which implements section 19 of the Act, requires that a depository institution meet reserve requirements by holding cash in its vault, or if vault cash is insufficient, by maintaining a balance in an account at a Federal Reserve Bank (‘‘Reserve Bank’’).2 Section 19 also provides that balances maintained by or on behalf of certain institutions in an account at a Reserve Bank may receive earnings to be paid by the Reserve Bank at least once each quarter, at a rate or rates not to exceed the general level of short-term interest rates.3 Institutions that are eligible to receive earnings on their balances held at Reserve Banks (‘‘eligible institutions’’) include depository institutions and certain other institutions.4 Section 19 also provides that the Board may prescribe regulations concerning the payment of earnings on balances at a Reserve Bank.5 Prior to these amendments, Regulation D specified a rate of 1.95 percent for both IORR and IOER.6 II. Amendments to IORR and IOER The Board is amending § 204.10(b)(5) of Regulation D to specify that IORR is 2.20 percent and IOER is 2.20 percent. This 0.25 percentage point increase in the IORR and IOER was associated with an increase in the target range for the federal funds rate, from a target range of 13⁄4 to 2 percent to a target range of 2 to 21⁄4 percent, announced by the FOMC on September 26, 2018, with an effective date of September 27, 2018. The FOMC’s press release on the same day as the announcement noted that: amozie on DSK3GDR082PROD with RULES Information received since the Federal Open Market Committee met in August 1 12 U.S.C. 461(b). CFR 204.5(a)(1). 3 12 U.S.C. 461(b)(1)(A) & (b)(12)(A). 4 See 12 U.S.C. 461(b)(1)(A) & (b)(12)(C); see also 12 CFR 204.2(y). 5 See 12 U.S.C. 461(b)(12)(B). 6 See 12 CFR 204.10(b)(5). 2 12 VerDate Sep<11>2014 16:20 Oct 01, 2018 Jkt 247001 indicates that the labor market has continued to strengthen and that economic activity has been rising at a strong rate. Job gains have been strong, on average, in recent months, and the unemployment rate has stayed low. Household spending and business fixed investment have grown strongly. On a 12month basis, both overall inflation and inflation for items other than food and energy remain near 2 percent. Indicators of longerterm inflation expectations are little changed, on balance. Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective over the medium term. Risks to the economic outlook appear roughly balanced. In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 2 to 21⁄4 percent. A Federal Reserve Implementation note released simultaneously with the announcement stated that the Board ‘‘voted unanimously to raise the interest rate paid on required and excess reserve balances to 2.20 percent, effective September 27, 2018.’’ As a result, the Board is amending § 204.10(b)(5) of Regulation D to change IORR to 2.20 percent and IOER to 2.20 percent. III. Administrative Procedure Act In general, the Administrative Procedure Act (‘‘APA’’) 7 imposes three principal requirements when an agency promulgates legislative rules (rules made pursuant to congressionally delegated authority): (1) Publication with adequate notice of a proposed rule; (2) followed by a meaningful opportunity for the public to comment on the rule’s content; and (3) publication of the final rule not less than 30 days before its effective date. The APA provides that notice and comment procedures do not apply if the agency for good cause finds them to be ‘‘unnecessary, impracticable, or contrary to the public interest.’’ 8 Section 553(d) of the APA also provides that publication at least 30 days prior to a rule’s effective date is not required for (1) a substantive rule which grants or recognizes an exemption or relieves a restriction; (2) interpretive rules and statements of policy; or (3) a rule for which the agency finds good cause for shortened notice and publishes its reasoning with the rule.9 U.S.C. 551 et seq. U.S.C. 553(b)(3)(A). 9 5 U.S.C. 553(d). The Board has determined that good cause exists for finding that the notice, public comment, and delayed effective date provisions of the APA are unnecessary, impracticable, or contrary to the public interest with respect to these final amendments to Regulation D. The rate increases for IORR and IOER that are reflected in the final amendments to Regulation D were made with a view towards accommodating commerce and business and with regard to their bearing upon the general credit situation of the country. Notice and public comment would prevent the Board’s action from being effective as promptly as necessary in the public interest and would not otherwise serve any useful purpose. Notice, public comment, and a delayed effective date would create uncertainty about the finality and effectiveness of the Board’s action and undermine the effectiveness of that action. Accordingly, the Board has determined that good cause exists to dispense with the notice, public comment, and delayed effective date procedures of the APA with respect to these final amendments to Regulation D. IV. Regulatory Flexibility Analysis The Regulatory Flexibility Act (‘‘RFA’’) does not apply to a rulemaking where a general notice of proposed rulemaking is not required.10 As noted previously, the Board has determined that it is unnecessary and contrary to the public interest 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. V. Paperwork Reduction Act In accordance with the Paperwork Reduction Act (‘‘PRA’’) of 1995,11 the Board reviewed the final rule under the authority delegated to the Board by the Office of Management and Budget. The final rule contains no requirements subject to the PRA. List of Subjects in 12 CFR Part 204 Banks, Banking, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, the Board amends 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: ■ 75 10 5 85 11 44 PO 00000 Frm 00016 Fmt 4700 U.S.C. 603, 604. U.S.C. 3506; see 5 CFR part 1320, appendix A.1. Sfmt 4700 E:\FR\FM\02OCR1.SGM 02OCR1 Federal Register / Vol. 83, No. 191 / Tuesday, October 2, 2018 / Rules and Regulations Authority: 12 U.S.C. 248(a), 248(c), 461, 601, 611, and 3105. airplanes, and that the AFM may have been erroneously revised on certain airplanes not equipped with a BUSS function. We are issuing this AD to address the unsafe condition on these products. 2. Section 204.10 is amended by revising paragraph (b)(5) to read as follows: ■ Standards Branch, FAA, 2200 South 216th St., Des Moines, WA 98351; telephone and fax 206–231–3223. SUPPLEMENTARY INFORMATION: Discussion We issued AD 2018–02–18, DATES: This AD is effective October 17, Amendment 39–19171 (83 FR 5182, * * * * * 2018. February 6, 2018) (‘‘AD 2018–02–18’’), (b) * * * We must receive comments on this which applied to certain Airbus SAS (5) The rates for IORR and IOER are: AD by November 16, 2018. Model A318, A319, and A320 series ADDRESSES: You may send comments, airplanes and Model A321–111, –112, Rate using the procedures found in 14 CFR (percent) –131, –211, –212, –213, –231, and –232 11.43 and 11.45, by any of the following airplanes. AD 2018–02–18 was IORR ........................................... 2.20 methods: prompted by a determination that when • Federal eRulemaking Portal: Go to IOER ........................................... 2.20 two AoA sensors are adversely affected http://www.regulations.gov. Follow the by icing conditions at the same time, instructions for submitting comments. * * * * * data displayed on the BUSS could be • Fax: 202–493–2251. By order of the Board of Governors of the erroneous. AD 2018–02–18 required • Mail: U.S. Department of Federal Reserve System, September 27, 2018. revising the AFM to provide guidance to Transportation, Docket Operations, Ann Misback, the flightcrew for emergency procedures M–30, West Building Ground Floor, Secretary of the Board. when erroneous airspeed indications are Room W12–140, 1200 New Jersey [FR Doc. 2018–21435 Filed 10–1–18; 8:45 am] displayed on the BUSS. We issued AD Avenue SE, Washington, DC 20590. 2018–02–18 to address erroneous BILLING CODE 6210–01–P • Hand Delivery: U.S. Department of airspeed data displays, which could Transportation, Docket Operations, lead to an increased flightcrew M–30, West Building Ground Floor, workload, possibly resulting in reduced DEPARTMENT OF TRANSPORTATION Room W12–140, 1200 New Jersey Avenue SE, Washington, DC, between 9 control of the airplane. Since we issued AD 2018–02–18, we Federal Aviation Administration a.m. and 5 p.m., Monday through have determined that airplanes on Friday, except Federal holidays. which Airbus Service Bulletin A320– 14 CFR Part 39 For service information identified in 34–1543 was embodied in service are this final rule, contact Airbus SAS, [Docket No. FAA–2018–0804; Product also subject to the unsafe condition, and Airworthiness Office—EIAS, RondIdentifier 2018–NM–129–AD; Amendment that the AFM may have been Point Emile Dewoitine No: 2, 31700 39–19442; AD 2018–20–08] Blagnac Cedex, France; telephone +33 5 erroneously revised on certain airplanes RIN 2120–AA64 61 93 36 96; fax +33 5 61 93 44 51; email not equipped with a BUSS function. The European Aviation Safety Agency account.airworth-eas@airbus.com; Airworthiness Directives; Airbus SAS (EASA), which is the Technical Agent internet http://www.airbus.com. You Airplanes for the Member States of the European may view this referenced service Union, has issued EASA AD 2018–0189, information at the FAA, Transport AGENCY: Federal Aviation Standards Branch, 2200 South 216th St., dated August 30, 2018 (referred to after Administration (FAA), Department of Des Moines, WA. For information on the this as the Mandatory Continuing Transportation (DOT). Airworthiness Information, or ‘‘the availability of this material at the FAA, ACTION: Final rule; request for MCAI’’), to correct an unsafe condition call 206–231–3195. It is also available comments. for all Airbus SAS Model A318, A319, on the internet at http:// and A320 series airplanes and Model SUMMARY: We are superseding www.regulations.gov by searching for A321–111, –112, –131, –211, –212, Airworthiness Directive (AD) 2018–02– and locating Docket No. FAA–2018– –213, –231, and –232 airplanes. The 18, which applied to certain Airbus SAS 0804. MCAI states: Model A318, A319, and A320 series Examining the AD Docket airplanes and Model A321–111, –112, In extreme icing conditions, pitot probes You may examine the AD docket on may induce erroneous airspeed indications. –131, –211, –212, –213, –231, and –232 To provide flight crews with reliable the internet at http:// airplanes. AD 2018–02–18 required information on airspeed, Airbus developed a www.regulations.gov by searching for revising the airplane flight manual Back-up Speed Scale (BUSS and reversible and locating Docket No. FAA–2018– (AFM) to provide guidance to the BUSS, based on angle of attack (AoA) value) 0804; or in person at the Docket flightcrew for certain emergency displayed on the Primary Flight Display Management Facility between 9 a.m. procedures. This new AD requires (PFD), together with a PFD Back-Up Altitude and 5 p.m., Monday through Friday, revising the AFM, and for certain Scale based on Global Positioning System except Federal holidays. The AD docket (GPS) altitude. This BUSS function is airplanes, removing a certain AFM revision. This AD also adds airplanes to contains this AD, the regulatory intended to be used below flight level (FL) evaluation, any comments received, and 250 only. Following new investigation the applicability. This AD was prompted by a determination that, when other information. The street address for related to AoA probes blockages, it was the Docket Operations office (telephone identified that, when two AoA sensors are two angle of attack (AoA) sensors are adversely affected by icing conditions at the adversely affected by icing conditions at 800–647–5527) is in the ADDRESSES same time, data displayed on the BUSS could section. Comments will be available in the same time, data displayed on the be erroneous. the AD docket shortly after receipt. back up speed scale (BUSS) could be This condition, if not corrected, could lead erroneous. This AD was also prompted FOR FURTHER INFORMATION CONTACT: to an increased flight crew workload, by a determination that the AFM needs Sanjay Ralhan, Aerospace Engineer, possibly resulting in reduced control of the to be revised for certain additional International Section, Transport aeroplane. § 204.10 amozie on DSK3GDR082PROD with RULES 49475 Payment of interest on balances. VerDate Sep<11>2014 16:20 Oct 01, 2018 Jkt 247001 PO 00000 Frm 00017 Fmt 4700 Sfmt 4700 E:\FR\FM\02OCR1.SGM 02OCR1

Agencies

[Federal Register Volume 83, Number 191 (Tuesday, October 2, 2018)]
[Rules and Regulations]
[Pages 49473-49475]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21435]


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FEDERAL RESERVE SYSTEM

12 CFR Part 204

[Docket No. R-1624]
RIN 7100-AF 18


Regulation D: Reserve Requirements of Depository Institutions

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule.

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SUMMARY: The Board of Governors of the Federal Reserve System 
(``Board'') is amending Regulation D (Reserve Requirements of 
Depository Institutions) to revise the rate of interest paid on 
balances maintained to satisfy reserve balance requirements (``IORR'') 
and the rate of interest paid on excess balances (``IOER'') maintained 
at Federal Reserve Banks by or on behalf of eligible institutions. The 
final amendments specify that IORR is 2.20 percent and IOER is 2.20 
percent, a 0.25 percentage point increase from their prior levels. The 
amendments are intended to enhance the role of such rates of interest 
in moving the Federal funds rate into the target range established by 
the Federal Open Market Committee (``FOMC'' or ``Committee'').

DATES: Effective date: The amendments to part 204 (Regulation D) are 
effective October 2, 2018.
    Applicability date: The IORR and IOER rate changes were applicable 
on September 27, 2018.

FOR FURTHER INFORMATION CONTACT: Sophia Allison, Senior Special Counsel

[[Page 49474]]

(202-452-3565), Legal Division, or Kristen Payne, Senior Financial 
Institution & Policy Analyst (202-452-2872), or Mary-Frances 
Styczynski, Section Chief (202-452-3303), 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:

I. Statutory and Regulatory Background

    For monetary policy purposes, section 19 of the Federal Reserve Act 
(``the Act'') imposes reserve requirements on certain types of deposits 
and other liabilities of depository institutions.\1\ Regulation D, 
which implements section 19 of the Act, requires that a depository 
institution meet reserve requirements by holding cash in its vault, or 
if vault cash is insufficient, by maintaining a balance in an account 
at a Federal Reserve Bank (``Reserve Bank'').\2\ Section 19 also 
provides that balances maintained by or on behalf of certain 
institutions in an account at a Reserve Bank may receive earnings to be 
paid by the Reserve Bank at least once each quarter, at a rate or rates 
not to exceed the general level of short-term interest rates.\3\ 
Institutions that are eligible to receive earnings on their balances 
held at Reserve Banks (``eligible institutions'') include depository 
institutions and certain other institutions.\4\ Section 19 also 
provides that the Board may prescribe regulations concerning the 
payment of earnings on balances at a Reserve Bank.\5\ Prior to these 
amendments, Regulation D specified a rate of 1.95 percent for both IORR 
and IOER.\6\
---------------------------------------------------------------------------

    \1\ 12 U.S.C. 461(b).
    \2\ 12 CFR 204.5(a)(1).
    \3\ 12 U.S.C. 461(b)(1)(A) & (b)(12)(A).
    \4\ See 12 U.S.C. 461(b)(1)(A) & (b)(12)(C); see also 12 CFR 
204.2(y).
    \5\ See 12 U.S.C. 461(b)(12)(B).
    \6\ See 12 CFR 204.10(b)(5).
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II. Amendments to IORR and IOER

    The Board is amending Sec.  204.10(b)(5) of Regulation D to specify 
that IORR is 2.20 percent and IOER is 2.20 percent. This 0.25 
percentage point increase in the IORR and IOER was associated with an 
increase in the target range for the federal funds rate, from a target 
range of 1\3/4\ to 2 percent to a target range of 2 to 2\1/4\ percent, 
announced by the FOMC on September 26, 2018, with an effective date of 
September 27, 2018. The FOMC's press release on the same day as the 
announcement noted that:

    Information received since the Federal Open Market Committee met 
in August indicates that the labor market has continued to 
strengthen and that economic activity has been rising at a strong 
rate. Job gains have been strong, on average, in recent months, and 
the unemployment rate has stayed low. Household spending and 
business fixed investment have grown strongly. On a 12-month basis, 
both overall inflation and inflation for items other than food and 
energy remain near 2 percent. Indicators of longer-term inflation 
expectations are little changed, on balance.
    Consistent with its statutory mandate, the Committee seeks to 
foster maximum employment and price stability. The Committee expects 
that further gradual increases in the target range for the federal 
funds rate will be consistent with sustained expansion of economic 
activity, strong labor market conditions, and inflation near the 
Committee's symmetric 2 percent objective over the medium term. 
Risks to the economic outlook appear roughly balanced.
    In view of realized and expected labor market conditions and 
inflation, the Committee decided to raise the target range for the 
federal funds rate to 2 to 2\1/4\ percent.

    A Federal Reserve Implementation note released simultaneously with 
the announcement stated that the Board ``voted unanimously to raise the 
interest rate paid on required and excess reserve balances to 2.20 
percent, effective September 27, 2018.''
    As a result, the Board is amending Sec.  204.10(b)(5) of Regulation 
D to change IORR to 2.20 percent and IOER to 2.20 percent.

III. Administrative Procedure Act

    In general, the Administrative Procedure Act (``APA'') \7\ imposes 
three principal requirements when an agency promulgates legislative 
rules (rules made pursuant to congressionally delegated authority): (1) 
Publication with adequate notice of a proposed rule; (2) followed by a 
meaningful opportunity for the public to comment on the rule's content; 
and (3) publication of the final rule not less than 30 days before its 
effective date. The APA provides that notice and comment procedures do 
not apply if the agency for good cause finds them to be ``unnecessary, 
impracticable, or contrary to the public interest.'' \8\ Section 553(d) 
of the APA also provides that publication at least 30 days prior to a 
rule's effective date is not required for (1) a substantive rule which 
grants or recognizes an exemption or relieves a restriction; (2) 
interpretive rules and statements of policy; or (3) a rule for which 
the agency finds good cause for shortened notice and publishes its 
reasoning with the rule.\9\
---------------------------------------------------------------------------

    \7\ 5 U.S.C. 551 et seq.
    \8\ 5 U.S.C. 553(b)(3)(A).
    \9\ 5 U.S.C. 553(d).
---------------------------------------------------------------------------

    The Board has determined that good cause exists for finding that 
the notice, public comment, and delayed effective date provisions of 
the APA are unnecessary, impracticable, or contrary to the public 
interest with respect to these final amendments to Regulation D. The 
rate increases for IORR and IOER that are reflected in the final 
amendments to Regulation D were made with a view towards accommodating 
commerce and business and with regard to their bearing upon the general 
credit situation of the country. Notice and public comment would 
prevent the Board's action from being effective as promptly as 
necessary in the public interest and would not otherwise serve any 
useful purpose. Notice, public comment, and a delayed effective date 
would create uncertainty about the finality and effectiveness of the 
Board's action and undermine the effectiveness of that action. 
Accordingly, the Board has determined that good cause exists to 
dispense with the notice, public comment, and delayed effective date 
procedures of the APA with respect to these final amendments to 
Regulation D.

IV. Regulatory Flexibility Analysis

    The Regulatory Flexibility Act (``RFA'') does not apply to a 
rulemaking where a general notice of proposed rulemaking is not 
required.\10\ As noted previously, the Board has determined that it is 
unnecessary and contrary to the public interest 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.
---------------------------------------------------------------------------

    \10\ 5 U.S.C. 603, 604.
---------------------------------------------------------------------------

V. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act (``PRA'') of 
1995,\11\ the Board reviewed the final rule under the authority 
delegated to the Board by the Office of Management and Budget. The 
final rule contains no requirements subject to the PRA.
---------------------------------------------------------------------------

    \11\ 44 U.S.C. 3506; see 5 CFR part 1320, appendix A.1.
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List of Subjects in 12 CFR Part 204

    Banks, Banking, Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, the Board amends 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:


[[Page 49475]]


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


0
2. Section 204.10 is amended by revising paragraph (b)(5) to read as 
follows:


Sec.  204.10  Payment of interest on balances.

* * * * *
    (b) * * *
    (5) The rates for IORR and IOER are:

------------------------------------------------------------------------
                                                                 Rate
                                                               (percent)
------------------------------------------------------------------------
IORR........................................................        2.20
IOER........................................................        2.20
------------------------------------------------------------------------

* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, September 27, 2018.
Ann Misback,
Secretary of the Board.
[FR Doc. 2018-21435 Filed 10-1-18; 8:45 am]
BILLING CODE 6210-01-P