Regulation D: Reserve Requirements of Depository Institutions, 59924-59926 [2019-24272]

Download as PDF 59924 Federal Register / Vol. 84, No. 216 / Thursday, November 7, 2019 / Rules and Regulations 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 Federal Reserve Banks make primary and secondary credit available to depository institutions as a backup source of funding on a short-term basis, usually overnight. The primary and secondary credit rates are the interest rates that the twelve Federal Reserve Banks charge for extensions of credit under these programs. In accordance with the Federal Reserve Act, the primary and secondary credit rates are established by the boards of directors of the Federal Reserve Banks, subject to the review and determination of the Board. On October 30, 2019, the Board voted to approve a 1⁄4 percentage point decrease in the primary credit rate in effect at each of the twelve Federal Reserve Banks, thereby decreasing from 2.50 percent to 2.25 percent the rate that each Reserve Bank charges for extensions of primary credit. In addition, the Board had previously approved the renewal of the secondary credit rate formula, the primary credit rate plus 50 basis points. Under the formula, the secondary credit rate in effect at each of the twelve Federal Reserve Banks decreased by 1⁄4 percentage point as a result of the Board’s primary credit rate action, thereby decreasing from 3.00 percent to 2.75 percent the rate that each Reserve Bank charges for extensions of secondary credit. The amendments to Regulation A reflect these rate changes. The 1⁄4 percentage point decrease in the primary credit rate was associated with a decrease in the target range for the federal funds rate (from a target range of 13⁄4 to 2 percent to a target range of 11⁄2 to 13⁄4 percent) announced by the Federal Open Market Committee on October 30, 2019, as described in the Board’s amendment of its Regulation D published elsewhere in today’s 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 Congressionallydelegated 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 15 U.S.C. 551 et seq. VerDate Sep<11>2014 15:54 Nov 06, 2019 Jkt 250001 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. The amendments involve a matter relating to loans and are therefore exempt under the terms of the APA. Furthermore, 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. 25 U.S.C. 553(b)(3)(A). U.S.C. 553(d). 4 5 U.S.C. 553(a)(2) (emphasis added). 5 5 U.S.C. 603, 604. 35 PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 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 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 2.25 percent. (b) Secondary credit. The interest rate at each Federal Reserve Bank for secondary credit provided to depository institutions under 201.4(b) is 2.75 percent. * * * * * By order of the Board of Governors of the Federal Reserve System, November 1, 2019. Michele Taylor Fennell, Assistant Secretary of the Board. [FR Doc. 2019–24273 Filed 11–6–19; 8:45 am] BILLING CODE 6210–01–P FEDERAL RESERVE SYSTEM 12 CFR Part 204 [Docket No. R–1684; RIN 7100–AF 64] Regulation D: Reserve Requirements of Depository Institutions Board of Governors of the Federal Reserve System. 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. E:\FR\FM\07NOR1.SGM 07NOR1 Federal Register / Vol. 84, No. 216 / Thursday, November 7, 2019 / Rules and Regulations 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 1.55 percent and IOER is 1.55 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 November 7, 2019. Applicability date: The IORR and IOER rate changes are applicable beginning October 31, 2019. FOR FURTHER INFORMATION CONTACT: Sophia H. Allison, Senior Special Counsel (202–452–3565), or Justyna Bolter, Senior Attorney (202–452–2686), Legal Division, or Francis Martinez, Senior Financial Institution & Policy Analyst (202–245–4217), 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). VerDate Sep<11>2014 15:54 Nov 06, 2019 Jkt 250001 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 1.80 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 1.55 percent and IOER is 1.55 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 13⁄4 to 2 percent to a target range of 11⁄2 to 13⁄4 percent, announced by the FOMC on October 30, 2019, with an effective date of October 31, 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 September 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 household spending has been rising at a strong pace, business fixed investment and exports remain weak. 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 11⁄2 to 13⁄4 percent. This action supports the Committee’s view that sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective are the most likely outcomes, but uncertainties about this outlook remain. The Committee will continue to monitor the implications of incoming information for the economic outlook as it assesses the appropriate path of the target range for the federal funds rate. 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 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). PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 59925 reserve balances to 1.55 percent, effective October 31, 2019. As a result, the Board is amending § 204.10(b)(5) of Regulation D to change IORR to 1.55 percent and IOER to 1.55 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 Congressionallydelegated 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. 75 U.S.C. 551 et seq. U.S.C. 553(b)(3)(A). 9 5 U.S.C. 553(d). 85 E:\FR\FM\07NOR1.SGM 07NOR1 59926 Federal Register / Vol. 84, No. 216 / Thursday, November 7, 2019 / Rules and Regulations IV. Regulatory Flexibility Analysis DEPARTMENT OF TRANSPORTATION 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. Federal Aviation Administration 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. 14 CFR Part 39 [Docket No. FAA–2019–0853; Product Identifier 2019–CE–036–AD; Amendment 39–19774; AD 2019–21–08] RIN 2120–AA64 Airworthiness Directives; Textron Aviation Inc. (Type Certificate Previously Held by Beechcraft Corporation) Airplanes Federal Aviation Administration (FAA), DOT. ACTION: Final rule; request for comments. AGENCY: Discussion The FAA is adopting a new airworthiness directive (AD) for Textron Aviation Inc. (Textron) Models E33, E33A, E33C, F33, G33, 35–C33, 35– List of Subjects in 12 CFR Part 204 C33A, K35, M35, N35, P35, S35, V35, V35A, 36, and certain Models F33A, Banks, Banking, Reporting and F33C, V35B, and A36 airplanes. This recordkeeping requirements. AD requires inspecting the right aileron For the reasons set forth in the flight control cable end fittings (terminal preamble, the Board amends 12 CFR attachment fittings) and replacing any part 204 as follows: damaged cable assembly. This AD was prompted by reports of cracked and PART 204—RESERVE fractured right aileron flight control REQUIREMENTS OF DEPOSITORY cable end fittings. The FAA is issuing INSTITUTIONS (REGULATION D) this AD to address the unsafe condition on these products. ■ 1. The authority citation for part 204 DATES : This AD is effective November continues to read as follows: 22, 2019. Authority: 12 U.S.C. 248(a), 248(c), 461, The FAA must receive comments on 601, 611, and 3105. this AD by December 23, 2019. ■ 2. Section 204.10 is amended by ADDRESSES: You may send comments, revising paragraph (b)(5) to read as using the procedures found in 14 CFR follows: 11.43 and 11.45, by any of the following methods: § 204.10 Payment of interest on balances. • Federal eRulemaking Portal: Go to * * * * * https://www.regulations.gov. Follow the (b) * * * instructions for submitting comments. • Fax: 202–493–2251. (5) The rates for IORR and IOER are: • Mail: U.S. Department of Transportation, Docket Operations, M– TABLE 1 TO PARAGRAPH (B)(5) 30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE, Rate (percent) Washington, DC 20590. • Hand Delivery: U.S. Department of IORR ........................................... 1.55 Transportation, Docket Operations, M– IOER ........................................... 1.55 30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE, * * * * * Washington, DC 20590, between 9 a.m. By order of the Board of Governors of the and 5 p.m., Monday through Friday, Federal Reserve System, November 1, 2019. except Federal holidays. Michele Taylor Fennell, Assistant Secretary of the Board. [FR Doc. 2019–24272 Filed 11–6–19; 8:45 am] BILLING CODE 6210–01–P 10 5 U.S.C. 603, 604. U.S.C. 3506; see 5 CFR part 1320 appendix 11 44 A.1. VerDate Sep<11>2014 15:54 Nov 06, 2019 Jkt 250001 through Friday, except Federal holidays. The AD docket contains this final rule, the regulatory evaluation, any comments received, and other information. The street address for the Docket Operations is listed above. Comments will be available in the AD docket shortly after receipt. FOR FURTHER INFORMATION CONTACT: Alan Levanduski, Aerospace Engineer, Wichita ACO Branch, FAA, 1801 Airport Road, Room 100, Wichita, Kansas 67209; phone: (316) 946–4161; fax: (316) 946–4107; email: alan.levanduski@faa.gov. SUPPLEMENTARY INFORMATION: SUMMARY: Within the last year, the FAA has received an estimated 17 reports of the right aileron flight control cable end fittings failing on Textron Models E33A, S35, V35, and A36 airplanes. There are two different cable assemblies installed on the right aileron flight control system. The forward aileron cable assembly connects the control wheel to the turnbuckle, and the aft aileron cable assembly connects the aileron surface to the turnbuckle. These failures have occurred at the swaged cable end fittings that thread into the turnbuckle. The location of the right aileron cable end fittings, just forward of the aft carry through spar and underneath a heating duct, creates an environment where corrosion may be accelerated. Also, the presence of the turnbuckle safety wire, combined with the location beneath the heating duct, makes corrosion and cracking difficult to detect. Some of the reports of failed cable end fittings revealed that the aileron cables had been held together only by the safety wire, while other reports were of complete aileron cable separation. Because of airplane design similarities, this unsafe condition could also occur on Models E33, E33C, F33, F33A, F33C, G33, 35–C33, 35–C33A, K35, M35, N35, P35, V35A, V35B, and 36. This condition, if not addressed, could result in failure of the right aileron flight control cable assembly, un-commanded right roll of the airplane, and loss of roll control in the left direction, which may lead to loss of control of the airplane. The FAA is issuing this AD to address the unsafe condition on these products. Examining the AD Docket FAA’s Determination You may examine the AD docket on the internet at https:// www.regulations.gov by searching for and locating Docket No. FAA–2019– 0853; or in person at Docket Operations between 9 a.m. and 5 p.m., Monday The FAA is issuing this AD because it evaluated all the relevant information and determined the unsafe condition described previously is likely to exist or develop in other products of the same type design. PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 E:\FR\FM\07NOR1.SGM 07NOR1

Agencies

[Federal Register Volume 84, Number 216 (Thursday, November 7, 2019)]
[Rules and Regulations]
[Pages 59924-59926]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24272]


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FEDERAL RESERVE SYSTEM

12 CFR Part 204

[Docket No. R-1684; RIN 7100-AF 64]


Regulation D: Reserve Requirements of Depository Institutions

AGENCY: Board of Governors of the Federal Reserve System.

[[Page 59925]]


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 1.55 percent and IOER is 1.55 
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 November 7, 2019.
    Applicability date: The IORR and IOER rate changes are applicable 
beginning October 31, 2019.

FOR FURTHER INFORMATION CONTACT: Sophia H. Allison, Senior Special 
Counsel (202-452-3565), or Justyna Bolter, Senior Attorney (202-452-
2686), Legal Division, or Francis Martinez, Senior Financial 
Institution & Policy Analyst (202-245-4217), 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 1.80 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 1.55 percent and IOER is 1.55 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 
1\3/4\ to 2 percent to a target range of 1\1/2\ to 1\3/4\ percent, 
announced by the FOMC on October 30, 2019, with an effective date of 
October 31, 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 September 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 household spending has been rising at a 
strong pace, business fixed investment and exports remain weak. 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 1\1/2\ to 1\3/4\ percent. 
This action supports the Committee's view that sustained expansion 
of economic activity, strong labor market conditions, and inflation 
near the Committee's symmetric 2 percent objective are the most 
likely outcomes, but uncertainties about this outlook remain. The 
Committee will continue to monitor the implications of incoming 
information for the economic outlook as it assesses the appropriate 
path of the target range for the federal funds rate.

    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 1.55 percent, effective October 31, 2019.

    As a result, the Board is amending Sec.  204.10(b)(5) of Regulation 
D to change IORR to 1.55 percent and IOER to 1.55 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\
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    \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.

[[Page 59926]]

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

    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:

                       Table 1 to Paragraph (b)(5)
------------------------------------------------------------------------
                                                                 Rate
                                                               (percent)
------------------------------------------------------------------------
IORR........................................................        1.55
IOER........................................................        1.55
------------------------------------------------------------------------

* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, November 1, 2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019-24272 Filed 11-6-19; 8:45 am]
BILLING CODE 6210-01-P