Regulation D: Reserve Requirements of Depository Institutions, 512-513 [2018-28424]
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512
Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Rules and Regulations
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.
12 CFR Chapter II
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 chapter II to read as follows:
PART 201—EXTENSIONS OF CREDIT
BY FEDERAL RESERVE BANKS
(REGULATION A)
1. The authority citation for part 201
is revised to read as follows:
■
Authority: 12 U.S.C. 248(i)–(j), 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:
■
§ 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 3.00
percent.
(b) Secondary credit. The interest rate
at each Federal Reserve Bank for
secondary credit provided to depository
institutions under § 201.4(b) is 3.50
percent.
*
*
*
*
*
By order of the Board of Governors of the
Federal Reserve System, December 20, 2018.
Ann Misback,
Secretary of the Board.
khammond on DSKBBV9HB2PROD with RULES
[FR Doc. 2018–28423 Filed 1–30–19; 8:45 am]
BILLING CODE 6210–01–P
6 44 U.S.C. 3506; see 5 CFR part 1320, appendix
A.1.
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.
VerDate Sep<11>2014
16:41 Jan 30, 2019
Jkt 247001
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Docket No. R–1646]
RIN 7100–AF35
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 2.40 percent and
IOER is 2.40 percent, a 0.20 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
January 31, 2019.
Applicability date: The IORR and
IOER rate changes were applicable on
December 20, 2018.
FOR FURTHER INFORMATION CONTACT:
Clinton Chen, Senior Attorney (202–
452–3952), or Sophia Allison, Senior
Special Counsel (202–452–3565), Legal
Division, or Kristen Payne, Senior
Financial Institution & Policy Analyst
(202–452–2872), or Laura Lipscomb,
Assistant Director (202–912–7964),
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:
SUMMARY:
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
1 12
PO 00000
U.S.C. 461(b).
Frm 00002
Fmt 4700
Sfmt 4700
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 2.20 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
2.40 percent and IOER is 2.40 percent.
This 0.20 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
2 to 21⁄4 percent to a target range of 21⁄4
to 21⁄2 percent, announced by the FOMC
on December 19, 2018, with an effective
date of December 20, 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 November
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 remained
low. Household spending has continued to
grow strongly, while growth of business fixed
investment has moderated from its rapid
pace earlier in the year. 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 judges that some 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. The Committee
judges that risks to the economic outlook are
roughly balanced, but will continue to
monitor global economic and financial
2 12
CFR 204.5(a)(1).
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).
3 12
E:\FR\FM\31JAR1.SGM
31JAR1
513
Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Rules and Regulations
developments and assess their implications
for the economic outlook.
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 21⁄4 to 21⁄2
percent.
A Federal Reserve Implementation
note released simultaneously with the
announcement stated:
The Board of Governors of the Federal
Reserve System voted unanimously to raise
the interest rate paid on required and excess
reserve balances to 2.40 percent, effective
December 20, 2018. Setting the interest rate
paid on required and excess reserve balances
10 basis points below the top of the target
range for the federal funds rate is intended
to foster trading in the federal funds market
at rates well within the FOMC’s target range.
khammond on DSKBBV9HB2PROD with RULES
As a result, the Board is amending
§ 204.10(b)(5) of Regulation D to change
IORR to 2.40 percent and IOER to 2.40
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
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
U.S.C. 551 et seq.
U.S.C. 553(b)(3)(A).
9 5 U.S.C. 553(d).
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.
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:
■
Authority: 12 U.S.C. 248(a), 248(c), 461,
601, 611, and 3105.
2. Section 204.10 is amended by
revising paragraph (b)(5) to read as
follows:
■
*
10 5
85
11 44
VerDate Sep<11>2014
16:41 Jan 30, 2019
Payment of interest on balances.
*
*
*
*
(b) * * *
(5) The rates for IORR and IOER are:
75
U.S.C. 603, 604.
U.S.C. 3506; see 5 CFR part 1320, appendix
A.1.
Jkt 247001
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
IORR .....................................
IOER .....................................
*
*
*
*
2.40
2.40
*
By order of the Board of Governors of the
Federal Reserve System, December 20, 2018.
Ann Misback,
Secretary of the Board.
[FR Doc. 2018–28424 Filed 1–30–19; 8:45 am]
BILLING CODE 6210–01–P
BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Part 1003
RIN 3170–AA92
Home Mortgage Disclosure
(Regulation C) Adjustment to AssetSize Exemption Threshold
Bureau of Consumer Financial
Protection.
AGENCY:
ACTION:
V. Paperwork Reduction Act
§ 204.10
Rate
(percent)
Final rule; official commentary.
The Bureau of Consumer
Financial Protection (Bureau) is
amending the official commentary that
interprets the requirements of the
Bureau’s Regulation C (Home Mortgage
Disclosure) to reflect the asset-size
exemption threshold for banks, savings
associations, and credit unions based on
the annual percentage change in the
average of the Consumer Price Index for
Urban Wage Earners and Clerical
Workers (CPI–W). Based on the 2.6
percent increase in the average of the
CPI–W for the 12-month period ending
in November 2018, the exemption
threshold is adjusted to increase to $46
million from $45 million. Therefore,
banks, savings associations, and credit
unions with assets of $46 million or less
as of December 31, 2018, are exempt
from collecting data in 2019.
SUMMARY:
Effective date: This rule is
effective January 31, 2019.
Applicability date: This rule is
applicable on January 1, 2019,
consistent with relevant statutory or
regulatory provisions.
DATES:
FOR FURTHER INFORMATION CONTACT:
Monique Chenault, Paralegal Specialist,
Office of Regulations, at (202) 435–7700.
If you require this document in an
alternative electronic format, please
contact CFPB_Accessibility@cfpb.gov.
SUPPLEMENTARY INFORMATION:
E:\FR\FM\31JAR1.SGM
31JAR1
]]>Agencies
[Federal Register Volume 84, Number 21 (Thursday, January 31, 2019)]
[Rules and Regulations]
[Pages 512-513]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-28424]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Docket No. R-1646]
RIN 7100-AF35
Regulation D: Reserve Requirements of Depository Institutions
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule.
-----------------------------------------------------------------------
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 2.40 percent and IOER is 2.40
percent, a 0.20 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 January 31, 2019.
Applicability date: The IORR and IOER rate changes were applicable
on December 20, 2018.
FOR FURTHER INFORMATION CONTACT: Clinton Chen, Senior Attorney (202-
452-3952), or Sophia Allison, Senior Special Counsel (202-452-3565),
Legal Division, or Kristen Payne, Senior Financial Institution & Policy
Analyst (202-452-2872), or Laura Lipscomb, Assistant Director (202-912-
7964), 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 2.20 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).
---------------------------------------------------------------------------
II. Amendments to IORR and IOER
The Board is amending Sec. 204.10(b)(5) of Regulation D to specify
that IORR is 2.40 percent and IOER is 2.40 percent. This 0.20
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 2 to 2\1/4\ percent to a target range of 2\1/4\ to 2\1/2\
percent, announced by the FOMC on December 19, 2018, with an effective
date of December 20, 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 November 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 remained low. Household spending has
continued to grow strongly, while growth of business fixed
investment has moderated from its rapid pace earlier in the year. 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 judges
that some 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. The Committee judges that risks to the economic outlook are
roughly balanced, but will continue to monitor global economic and
financial
[[Page 513]]
developments and assess their implications for the economic outlook.
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\1/4\ to 2\1/2\ percent.
A Federal Reserve Implementation note released simultaneously with
the announcement stated:
The Board of Governors of the Federal Reserve System voted
unanimously to raise the interest rate paid on required and excess
reserve balances to 2.40 percent, effective December 20, 2018.
Setting the interest rate paid on required and excess reserve
balances 10 basis points below the top of the target range for the
federal funds rate is intended to foster trading in the federal
funds market at rates well within the FOMC's target range.
As a result, the Board is amending Sec. 204.10(b)(5) of Regulation
D to change IORR to 2.40 percent and IOER to 2.40 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.
---------------------------------------------------------------------------
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:
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.................................................... 2.40
IOER.................................................... 2.40
------------------------------------------------------------------------
* * * * *
By order of the Board of Governors of the Federal Reserve
System, December 20, 2018.
Ann Misback,
Secretary of the Board.
[FR Doc. 2018-28424 Filed 1-30-19; 8:45 am]
BILLING CODE 6210-01-P
