Regulation D: Reserve Requirements of Depository Institutions, 39724-39725 [2019-17175]
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Federal Register / Vol. 84, No. 155 / Monday, August 12, 2019 / Rules and Regulations
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
continues 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 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, August 6, 2019.
Ann Misback,
Secretary of the Board.
[FR Doc. 2019–17173 Filed 8–9–19; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Docket No. R–1672; RIN 7100–AF 55]
Regulation D: Reserve Requirements
of Depository Institutions
Board of Governors of the
Federal Reserve System.
jspears on DSK3GMQ082PROD with RULES
AGENCY:
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
15:59 Aug 09, 2019
Jkt 247001
ACTION:
Final rule.
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 2.10 percent and
IOER is 2.10 percent, a 0.25 percentage
point decrease 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
August 12, 2019.
Applicability date: The IORR and
IOER rate changes were applicable on
August 1, 2019.
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
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
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).
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
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 2.35 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
2.10 percent and IOER is 2.10 percent.
This 0.25 percentage point decrease in
each rate was associated with a decrease
in the target range for the federal funds
rate, from a target range of 21⁄4 to 21⁄2
percent to a target range of 2 to 21⁄4
percent, announced by the FOMC on
July 31, 2019, with an effective date of
August 1, 2019. The FOMC’s press
release on the same day as the
announcement noted that:
Information received since the Federal
Open Market Committee met in June
indicates that the labor market remains
strong and that economic activity has been
rising at a moderate rate. Job gains have been
solid, on average, in recent months, and the
unemployment rate has remained low.
Although growth of household spending has
picked up from earlier in the year, growth of
business fixed investment has been soft. On
a 12-month basis, overall inflation and
inflation for items other than food and energy
are running below 2 percent. Market-based
measures of inflation compensation remain
low; survey-based measures of longer-term
inflation expectations are little changed.
Consistent with its statutory mandate, the
Committee seeks to foster maximum
employment and price stability. In light of
the implications of global developments for
the economic outlook as well as muted
inflation pressures, the Committee decided to
lower 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:
The Board of Governors of the Federal
Reserve System voted unanimously to lower
the interest rate paid on required and excess
reserve balances to 2.10 percent, effective
August 1, 2019.
As a result, the Board is amending
§ 204.10(b)(5) of Regulation D to change
IORR to 2.10 percent and IOER to 2.10
percent.
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).
E:\FR\FM\12AUR1.SGM
12AUR1
Federal Register / Vol. 84, No. 155 / Monday, August 12, 2019 / Rules and Regulations
jspears on DSK3GMQ082PROD with RULES
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 changes 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
U.S.C. 551 et seq.
U.S.C. 553(b)(3)(A).
9 5 U.S.C. 553(d).
10 5 U.S.C. 603, 604.
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
Department of the Army
32 CFR Part 633
[Docket ID: USA–2019–HQ–0016]
Individual Requests for Access or
Amendment of CID Reports of
Investigation
Department of the Army, DoD.
Final rule.
AGENCY:
ACTION:
This final rule removes the
Department of the Army regulation
concerning the Criminal Investigation
Banks, Banking, Reporting and
Division (CID) reports of investigation
recordkeeping requirements.
on specific military installations. The
For the reasons set forth in the
content of this part is addressed in DoD
preamble, the Board amends 12 CFR
regulations related to the Privacy Act
part 204 as follows:
and Freedom of Information Act, and it
is unnecessary.
PART 204—RESERVE
DATES
: This rule is effective on August
REQUIREMENTS OF DEPOSITORY
12, 2019.
INSTITUTIONS (REGULATION D)
FOR FURTHER INFORMATION CONTACT: T.L.
Williams at 571–305–4355.
■ 1. The authority citation for part 204
continues to read as follows:
SUPPLEMENTARY INFORMATION: This final
rule removes 32 CFR part 633,
Authority: 12 U.S.C. 248(a), 248(c), 461,
‘‘Individual Requests for Access or
601, 611, and 3105.
Amendment of CID Reports of
■ 2. Section 204.10 is amended by
Investigation,’’ which was originally
revising paragraph (b)(5) to read as
codified on July 27, 1979 (44 FR 44156),
and most recently updated on May 17,
follows:
2013 (78 FR 29019). It has been
§ 204.10 Payment of interest on balances.
determined that publication of this CFR
*
*
*
*
*
part removal for public comment is
impracticable, unnecessary, and
(b) * * *
contrary to public interest since it is
(5) The rates for IORR and IOER are:
based on removing content which is
covered in DoD regulations at 32 CFR
Rate
part 286, ‘‘DoD Freedom of Information
(percent)
Act (FOIA) Program’’ (last updated
IORR ...........................................
2.10 January 5, 2017, at 82 FR 1197), and 32
IOER ...........................................
2.10 CFR part 310, ‘‘DoD Privacy Program’’
(last updated April 11, 2019 at 84 FR
14730).
By order of the Board of Governors of the
Additional internal Army guidance is
Federal Reserve System, August 6, 2019.
published in Army Regulation 190–45,
Ann Misback,
‘‘Law Enforcement Reporting,’’
Secretary of the Board.
(available at https://armypubs.army.mil/
[FR Doc. 2019–17175 Filed 8–9–19; 8:45 am]
ProductMaps/PubForm/AR.aspx) which
was most recently updated on
BILLING CODE 6210–01–P
September 27, 2016.
This rule is not significant under
Executive Order (E.O.) 12866,
‘‘Regulatory Planning and Review,’’
therefore, E.O. 13771, ‘‘Reducing
Regulation and Controlling Regulatory
Costs’’ does not apply.
List of Subjects in 12 CFR Part 204
SUMMARY:
List of Subjects in 32 CFR Part 633
85
15:59 Aug 09, 2019
DEPARTMENT OF DEFENSE
RIN 0702–AB00
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.
75
VerDate Sep<11>2014
39725
11 44
U.S.C. 3506; see 5 CFR part 1320 Appendix
A.1.
Jkt 247001
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
Freedom of information,
Investigations, Privacy.
E:\FR\FM\12AUR1.SGM
12AUR1
]]>Agencies
[Federal Register Volume 84, Number 155 (Monday, August 12, 2019)]
[Rules and Regulations]
[Pages 39724-39725]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17175]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Docket No. R-1672; RIN 7100-AF 55]
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 2.10 percent and IOER is 2.10
percent, a 0.25 percentage point decrease 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 August 12, 2019.
Applicability date: The IORR and IOER rate changes were applicable
on August 1, 2019.
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 2.35 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 2.10 percent and IOER is 2.10 percent. This 0.25
percentage point decrease in each rate was associated with a decrease
in the target range for the federal funds rate, from a target range of
2\1/4\ to 2\1/2\ percent to a target range of 2 to 2\1/4\ percent,
announced by the FOMC on July 31, 2019, with an effective date of
August 1, 2019. The FOMC's press release on the same day as the
announcement noted that:
Information received since the Federal Open Market Committee met
in June indicates that the labor market remains strong and that
economic activity has been rising at a moderate rate. Job gains have
been solid, on average, in recent months, and the unemployment rate
has remained low. Although growth of household spending has picked
up from earlier in the year, growth of business fixed investment has
been soft. On a 12-month basis, overall inflation and inflation for
items other than food and energy are running below 2 percent.
Market-based measures of inflation compensation remain low; survey-
based measures of longer-term inflation expectations are little
changed.
Consistent with its statutory mandate, the Committee seeks to
foster maximum employment and price stability. In light of the
implications of global developments for the economic outlook as well
as muted inflation pressures, the Committee decided to lower 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:
The Board of Governors of the Federal Reserve System voted
unanimously to lower the interest rate paid on required and excess
reserve balances to 2.10 percent, effective August 1, 2019.
As a result, the Board is amending Sec. 204.10(b)(5) of Regulation
D to change IORR to 2.10 percent and IOER to 2.10 percent.
[[Page 39725]]
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 changes 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........................................................ 2.10
IOER........................................................ 2.10
------------------------------------------------------------------------
By order of the Board of Governors of the Federal Reserve
System, August 6, 2019.
Ann Misback,
Secretary of the Board.
[FR Doc. 2019-17175 Filed 8-9-19; 8:45 am]
BILLING CODE 6210-01-P
