Reserve Requirements of Depository Institutions, 64705-64707 [2019-25428]
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Federal Register / Vol. 84, No. 227 / Monday, November 25, 2019 / Rules and Regulations
Dated: October 29, 2019.
Ken Isley,
Administrator, Foreign Agricultural Service.
[FR Doc. 2019–25529 Filed 11–22–19; 8:45 am]
BILLING CODE 3410–10–P
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Regulation D; Docket No. R–1686]
RIN 7100–AF 66
Reserve Requirements of Depository
Institutions
Board of Governors of the
Federal Reserve System.
ACTION: Final rule.
AGENCY:
The Board is amending
Regulation D, Reserve Requirements of
Depository Institutions, to reflect the
annual indexing of the reserve
requirement exemption amount and the
low reserve tranche for 2020. The
Regulation D amendments set the
amount of total reservable liabilities of
each depository institution that is
subject to a zero percent reserve
requirement in 2020 at $16.9 million
(up from 16.3 million in 2019). This
amount is known as the reserve
requirement exemption amount. The
Regulation D amendments also set the
amount of net transaction accounts at
each depository institution (over the
reserve requirement exemption amount)
that is subject to a three percent reserve
requirement in 2020 at $127.5 million
(up from $124.2 million in 2019). This
amount is known as the low reserve
tranche. The adjustments to both of
these amounts are derived using
statutory formulas specified in the
Federal Reserve Act. The Board is also
announcing changes in two other
amounts, the nonexempt deposit cutoff
level and the reduced reporting limit,
that are used to determine the frequency
at which depository institutions must
submit deposit reports.
DATES:
Effective date: December 26, 2019.
Compliance dates: The new low
reserve tranche and reserve requirement
exemption amount will apply to the
fourteen-day reserve maintenance
period that begins January 16, 2020. For
depository institutions that report
deposit data weekly, this maintenance
period corresponds to the fourteen-day
computation period that begins
December 17, 2019. For depository
institutions that report deposit data
quarterly, this maintenance period
corresponds to the seven-day
computation period that begins
SUMMARY:
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15:57 Nov 22, 2019
Jkt 250001
December 17, 2019. The new values of
the nonexempt deposit cutoff level, the
reserve requirement exemption amount,
and the reduced reporting limit will be
used to determine the frequency at
which a depository institution submits
deposit reports effective in either June
or September 2020.
FOR FURTHER INFORMATION CONTACT:
Sophia H. Allison, Senior Special
Counsel (202–452–3565), Legal
Division, or Francis A. Martinez, Senior
Financial Institution and Policy Analyst
(202–245–4217), 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: Section
19(b)(2) of the Federal Reserve Act (12
U.S.C. 461(b)(2)) requires each
depository institution to maintain
reserves against its transaction accounts
and nonpersonal time deposits, as
prescribed by Board regulations, for the
purpose of implementing monetary
policy. Section 11(a)(2) of the Federal
Reserve Act (12 U.S.C. 248(a)(2))
authorizes the Board to require reports
of liabilities and assets from depository
institutions to enable the Board to
conduct monetary policy. The Board’s
actions with respect to each of these
provisions are discussed in turn below.
I. Reserve Requirements
Pursuant to section 19(b) of the
Federal Reserve Act (Act), transaction
account balances maintained at each
depository institution are subject to
reserve requirement ratios of zero, three,
or ten percent. Section 19(b)(11)(A) of
the Act (12 U.S.C. 461(b)(11)(A))
provides that a zero percent reserve
requirement shall apply at each
depository institution to total reservable
liabilities that do not exceed a certain
amount, known as the reserve
requirement exemption amount. Section
19(b)(11)(B) provides that, before
December 31 of each year, the Board
shall issue a regulation adjusting the
reserve requirement exemption amount
for the next calendar year if total
reservable liabilities held at all
depository institutions increase from
one year to the next. No adjustment is
made to the reserve requirement
exemption amount if total reservable
liabilities held at all depository
institutions should decrease during the
applicable time period. The Act requires
the percentage increase in the reserve
requirement exemption amount to be 80
percent of the increase in total
reservable liabilities of all depository
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64705
institutions over the one-year period
that ends on the June 30 prior to the
adjustment.
Total reservable liabilities of all
depository institutions increased by 4.3
percent, from $8,042 billion to $8,387
billion, between June 30, 2018, and June
30, 2019. Accordingly, the Board is
amending Regulation D to set the
reserve requirement exemption amount
for 2020 at $16.9 million, an increase of
$0.6 million from its level in 2019.1
Pursuant to Section 19(b)(2) of the Act
(12 U.S.C. 461(b)(2)), transaction
account balances maintained at each
depository institution over the reserve
requirement exemption amount and up
to a certain amount, known as the low
reserve tranche, are subject to a three
percent reserve requirement.
Transaction account balances over the
low reserve tranche are subject to a ten
percent reserve requirement. Section
19(b)(2) also provides that, before
December 31 of each year, the Board
shall issue a regulation adjusting the
low reserve tranche for the next
calendar year. The Act requires the
adjustment in the low reserve tranche to
be 80 percent of the percentage increase
or decrease in total transaction accounts
of all depository institutions over the
one-year period that ends on the June 30
prior to the adjustment.
Net transaction accounts of all
depository institutions increased 3.4
percent, from $2,410 billion to $2,491
billion, between June 30, 2018, and June
30, 2019. Accordingly, the Board is
amending Regulation D to set the low
reserve tranche for net transaction
accounts for 2020 at $127.5 million, an
increase of $3.3 million from 2019.
The new low reserve tranche and
reserve requirement exemption amount
will be effective for all depository
institutions for the fourteen-day reserve
maintenance period beginning January
16, 2020. For depository institutions
that report deposit data weekly, this
maintenance period corresponds to the
fourteen-day computation period that
begins December 17, 2019. For
depository institutions that report
deposit data quarterly, this maintenance
period corresponds to the seven-day
computation period that begins
December 17, 2019.
II. Deposit Reports
Section 11(b)(2) of the Federal
Reserve Act authorizes the Board to
require depository institutions to file
reports of their liabilities and assets as
1 Consistent with Board practice, the low reserve
tranche and reserve requirement exemption
amounts have been rounded to the nearest $0.1
million.
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64706
Federal Register / Vol. 84, No. 227 / Monday, November 25, 2019 / Rules and Regulations
the Board may determine to be
necessary or desirable to enable it to
discharge its responsibility to monitor
and control the monetary and credit
aggregates. The Board screens
depository institutions each year and
assigns them to one of four deposit
reporting panels (weekly reporters,
quarterly reporters, annual reporters, or
nonreporters). The panel assignment for
annual reporters is effective in June of
the screening year; the panel assignment
for weekly and quarterly reporters is
effective in September of the screening
year.
In order to ease reporting burden, the
Board permits smaller depository
institutions to submit deposit reports
less frequently than larger depository
institutions. The Board permits
depository institutions with net
transaction accounts above the reserve
requirement exemption amount but total
transaction accounts, savings deposits,
and small time deposits below a
specified level (the ‘‘nonexempt deposit
cutoff’’) to report deposit data quarterly.
Depository institutions with net
transaction accounts above the reserve
requirement exemption amount and
with total transaction accounts, savings
deposits, and small time deposits
greater than or equal to the nonexempt
deposit cutoff are required to report
deposit data weekly. The Board requires
certain large depository institutions to
report weekly regardless of the level of
their net transaction accounts if the
depository institution’s total transaction
accounts, savings deposits, and small
time deposits exceeds or is equal to a
specified level (the ‘‘reduced reporting
limit’’). The nonexempt deposit cutoff
level and the reduced reporting limit are
adjusted annually, by an amount equal
to 80 percent of the increase, if any, in
total transaction accounts, savings
deposits, and small time deposits of all
depository institutions over the one-year
period that ends on the June 30 prior to
the adjustment.
From June 30, 2018, to June 30, 2019,
total transaction accounts, savings
deposits, and small time deposits at all
depository institutions increased 3.5
percent, from $12,601 billion to $13,046
billion. Accordingly, the Board is
increasing the nonexempt deposit cutoff
level by $29.0 million to $1.058 billion
for 2020 (up from $1.029 billion in
2019). The Board is also increasing the
reduced reporting limit by $60.6 million
2 Consistent with Board practice, the nonexempt
deposit cutoff level and the reduced reporting limit
have been rounded to the nearest $1 million.
VerDate Sep<11>2014
15:57 Nov 22, 2019
Jkt 250001
to $2.208 billion for 2020 (up from
$2.147 billion in 2019).2
Beginning in 2020, the boundaries of
the four deposit reporting panels will be
defined as follows. Those depository
institutions with net transaction
accounts over $16.9 million (the reserve
requirement exemption amount) or with
total transaction accounts, savings
deposits, and small time deposits
greater than or equal to $2.208 billion
(the reduced reporting limit) are subject
to detailed reporting, and must file a
Report of Transaction Accounts, Other
Deposits and Vault Cash (FR 2900
report) either weekly or quarterly. Of
this group, those with total transaction
accounts, savings deposits, and small
time deposits greater than or equal to
$1.058 billion (the nonexempt deposit
cutoff level) are required to file the FR
2900 report each week, while those with
total transaction accounts, savings
deposits, and small time deposits less
than $1.058 billion are required to file
the FR 2900 report each quarter. Those
depository institutions with net
transaction accounts less than or equal
to $16.9 million (the reserve
requirement exemption amount) and
with total transaction accounts, savings
deposits, and small time deposits less
than $2.208 billion (the reduced
reporting limit) are eligible for reduced
reporting, and must either file a deposit
report annually or not at all. Of this
group, those with total deposits greater
than $16.9 million (but with total
transaction accounts, savings deposits,
and small time deposits less than $2.208
billion) are required to file the Annual
Report of Deposits and Reservable
Liabilities (FR 2910a) report annually,
while those with total deposits less than
or equal to $16.9 million are not
required to file a deposit report. A
depository institution that adjusts
reported values on its FR 2910a report
in order to qualify for reduced reporting
will be shifted to an FR 2900 reporting
panel.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
does not apply to a rulemaking where a
general notice of proposed rulemaking
is not required.3 As noted previously,
the Board has determined that it is
unnecessary to publish a general notice
of proposed rulemaking for this final
rule. Accordingly, the RFA’s
requirements relating to an initial and
final regulatory flexibility analysis do
not apply.
Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995,4 the Board
reviewed this final rule. No collections
of information pursuant to the
Paperwork Reduction Act are contained
in the final rule.
List of Subjects in 12 CFR Part 204
Banks, banking, Reporting and
recordkeeping requirements.
For the reasons set forth in the
preamble, the Board is amending 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 204.4 is amended by
revising paragraph (f) to read as follows:
■
§ 204.4
Computation of required reserves.
*
III. Regulatory Analysis
Administrative Procedure Act
The provisions of 5 U.S.C. 553(b)
relating to notice of proposed
rulemaking have not been followed in
connection with the adoption of these
amendments. The amendments involve
expected, ministerial adjustments
prescribed by statute and by the Board’s
policy concerning reporting practices.
The adjustments in the reserve
35
requirement exemption amount, the low
reserve tranche, the nonexempt deposit
cutoff level, and the reduced reporting
limit serve to reduce regulatory burdens
on depository institutions. Accordingly,
the Board finds good cause for
determining, and so determines, that
notice in accordance with 5 U.S.C.
553(b) is unnecessary.
*
*
*
*
(f) For all depository institutions,
Edge and Agreement corporations, and
United States branches and agencies of
foreign banks, required reserves are
computed by applying the reserve
requirement ratios in table 1 to this
paragraph (f) to net transaction
accounts, nonpersonal time deposits,
and Eurocurrency liabilities of the
institution during the computation
period.
U.S.C. 603 and 604.
U.S.C. 3506; 5 CFR part 1320.
4 44
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Federal Register / Vol. 84, No. 227 / Monday, November 25, 2019 / Rules and Regulations
64707
TABLE 1 TO PARAGRAPH (F)
Reservable liability
Reserve requirement
Net Transaction Accounts:
$0 to reserve requirement exemption amount ($16.9 million) ...................................................................
Over reserve requirement exemption amount ($16.9 million) and up to low reserve tranche ($127.5
million).
Over low reserve tranche ($127.5 million) .................................................................................................
Nonpersonal time deposits .........................................................................................................................
Eurocurrency liabilities ................................................................................................................................
By order of the Board of Governors of the
Federal Reserve System, acting through the
Director of the Division of Monetary Affairs
under delegated authority, November 19,
2019.
Ann Misback,
Secretary of the Board.
[FR Doc. 2019–25428 Filed 11–22–19; 8:45 am]
BILLING CODE P
SMALL BUSINESS ADMINISTRATION
13 CFR Part 131
RIN 3245–AG02
Office of Women’s Business
Ownership: Women’s Business Center
Program
AGENCY:
ACTION:
Small Business Administration.
Final rule.
The U.S. Small Business
Administration (SBA) is codifying
regulations for the Women’s Business
Center (WBC) Program as directed in
section 29 of the Small Business Act
(the Act). This final rule also codifies
policy and procedural changes included
in the WBC Program Announcement
and Notice of Award (NOA). These
changes include, but are not limited to,
the following: Language on risk
assessment, as required by the Uniform
Grant Guidance; limitations on
carryovers; a reduction in reporting
requirements; and eligibility criteria for
selection as a WBC. Implementing these
regulations will result in greater
standardization and transparency in the
delivery of the WBC Program.
SUMMARY:
DATES:
This rule is effective January 24,
2020.
FOR FURTHER INFORMATION CONTACT:
Donald Smith, Deputy Assistant
Administrator, U.S. Small Business
Administration, 409 3rd Street SW,
Washington, DC 20416, telephone
number (202) 205–7279 or
Donald.Smith@sba.gov.
SUPPLEMENTARY INFORMATION:
VerDate Sep<11>2014
15:57 Nov 22, 2019
Jkt 250001
I. Background
The Women’s Business Center
Program (WBC Program) was created
under the authority of Title II of the
Women’s Business Ownership Act of
1988 (Pub. L. 100–533). The WBC
Program authority is now codified in the
Small Business Act (Act), 15 U.S.C. 656.
The initial Demonstration Training
Program, later renamed the WBC
Program, was created with the
Congressional intent to remove barriers
to the creation and development of
small businesses owned and controlled
by women and to stimulate the economy
by aiding and encouraging the growth
and development of such businesses.
The specific objectives of the
Demonstration Training Program were
to provide long-term training and
counseling to potential and current
women business owners, including
those who are Socially and
Economically Disadvantaged as defined
in 13 CFR 124.103 and 124.104.
Since its creation, the WBC Program
has transformed through a number of
public laws from a Demonstration
Training Program into a permanent
program. The laws that have impacted
the WBC Program include the following:
The Women’s Business Development
Act of 1991 (Pub. L. 102–191); the
Women’s Business Centers
Sustainability Act of 1999 (Pub. L. 106–
165); the U.S. Troop Readiness,
Veterans’ Care, Katrina Recovery, and
Iraq Accountability Appropriations Act
of 2007 (Pub. L. 110–28); and the Small
Business Jobs Act of 2010 (Pub. L. 111–
240).
Section 29 of the Act, 15 U.S.C. 656,
authorizes the SBA to provide financial
assistance, in the form of grants, to
private nonprofit organizations to
conduct five-year projects for the benefit
of small business concerns owned and
controlled by women. The Act further
authorizes the SBA to renew a grant for
additional three-year periods and
provides that there are no limitations on
the number of times a grant may be
renewed.
On November 22, 2016, the SBA
published a proposed rule with a
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0 percent of amount.
3 percent of amount.
$3,318,000 plus 10 percent of
amount over $127.5 million.
0 percent.
0 percent.
request for public comment in the
Federal Register to outline program
requirements and standardize the
delivery of the WBC Program (81 FR
83718). The information proposed by
the SBA included clarification of terms
and definitions as well as overall
program policies.
This final rule codifies the SBA’s
oversight responsibilities of the WBC
Program into a newly created Part 131
of the SBA’s regulations by
incorporating the following: (A)
Standard definitions for the program (13
CFR 131.110); (B) program-participation
requirements and application
procedures (13 CFR 131.210, 13 CFR
131.300, 13 CFR 131.400); (C) financialmanagement and grant-administration
requirements (13 CFR 131.500); (D)
oversight and programmatic and
financial-examination provisions (13
CFR 131.700 and 13 CFR 131.720); (E)
procedures for the suspension,
termination, and non-renewal of a grant
(13 CFR 131.830); and (F) procedures for
dispute resolution (13 CFR 131.840).
II. Summary of Comments Received
The comment period was open from
November 22, 2016, to January 23, 2017,
and the SBA received 46 comments. Of
the 46 comments received, 36 were from
individuals or groups that concurred
with the comments submitted by the
Association of Women’s Business
Centers (AWBC). This preamble
includes the SBA’s response to all of the
comments received.
One of the comments received
referenced the intended use of the
Women’s Business Center (WBC or
Center) regulations. The commenter
indicated that while the SBA’s intent of
the proposed rule is to outline policies
and procedures for the WBC Program
and streamline both the program
announcement and the notice of award,
it continually references both of the
aforementioned program documents for
additional guidance. The commenter
suggested that program applicants and/
or participants should not have to refer
to multiple documents for guidance.
While the proposed rule references both
E:\FR\FM\25NOR1.SGM
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]]>Agencies
[Federal Register Volume 84, Number 227 (Monday, November 25, 2019)]
[Rules and Regulations]
[Pages 64705-64707]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25428]
=======================================================================
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Regulation D; Docket No. R-1686]
RIN 7100-AF 66
Reserve Requirements of Depository Institutions
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Board is amending Regulation D, Reserve Requirements of
Depository Institutions, to reflect the annual indexing of the reserve
requirement exemption amount and the low reserve tranche for 2020. The
Regulation D amendments set the amount of total reservable liabilities
of each depository institution that is subject to a zero percent
reserve requirement in 2020 at $16.9 million (up from 16.3 million in
2019). This amount is known as the reserve requirement exemption
amount. The Regulation D amendments also set the amount of net
transaction accounts at each depository institution (over the reserve
requirement exemption amount) that is subject to a three percent
reserve requirement in 2020 at $127.5 million (up from $124.2 million
in 2019). This amount is known as the low reserve tranche. The
adjustments to both of these amounts are derived using statutory
formulas specified in the Federal Reserve Act. The Board is also
announcing changes in two other amounts, the nonexempt deposit cutoff
level and the reduced reporting limit, that are used to determine the
frequency at which depository institutions must submit deposit reports.
DATES:
Effective date: December 26, 2019.
Compliance dates: The new low reserve tranche and reserve
requirement exemption amount will apply to the fourteen-day reserve
maintenance period that begins January 16, 2020. For depository
institutions that report deposit data weekly, this maintenance period
corresponds to the fourteen-day computation period that begins December
17, 2019. For depository institutions that report deposit data
quarterly, this maintenance period corresponds to the seven-day
computation period that begins December 17, 2019. The new values of the
nonexempt deposit cutoff level, the reserve requirement exemption
amount, and the reduced reporting limit will be used to determine the
frequency at which a depository institution submits deposit reports
effective in either June or September 2020.
FOR FURTHER INFORMATION CONTACT: Sophia H. Allison, Senior Special
Counsel (202-452-3565), Legal Division, or Francis A. Martinez, Senior
Financial Institution and Policy Analyst (202-245-4217), 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: Section 19(b)(2) of the Federal Reserve Act
(12 U.S.C. 461(b)(2)) requires each depository institution to maintain
reserves against its transaction accounts and nonpersonal time
deposits, as prescribed by Board regulations, for the purpose of
implementing monetary policy. Section 11(a)(2) of the Federal Reserve
Act (12 U.S.C. 248(a)(2)) authorizes the Board to require reports of
liabilities and assets from depository institutions to enable the Board
to conduct monetary policy. The Board's actions with respect to each of
these provisions are discussed in turn below.
I. Reserve Requirements
Pursuant to section 19(b) of the Federal Reserve Act (Act),
transaction account balances maintained at each depository institution
are subject to reserve requirement ratios of zero, three, or ten
percent. Section 19(b)(11)(A) of the Act (12 U.S.C. 461(b)(11)(A))
provides that a zero percent reserve requirement shall apply at each
depository institution to total reservable liabilities that do not
exceed a certain amount, known as the reserve requirement exemption
amount. Section 19(b)(11)(B) provides that, before December 31 of each
year, the Board shall issue a regulation adjusting the reserve
requirement exemption amount for the next calendar year if total
reservable liabilities held at all depository institutions increase
from one year to the next. No adjustment is made to the reserve
requirement exemption amount if total reservable liabilities held at
all depository institutions should decrease during the applicable time
period. The Act requires the percentage increase in the reserve
requirement exemption amount to be 80 percent of the increase in total
reservable liabilities of all depository institutions over the one-year
period that ends on the June 30 prior to the adjustment.
Total reservable liabilities of all depository institutions
increased by 4.3 percent, from $8,042 billion to $8,387 billion,
between June 30, 2018, and June 30, 2019. Accordingly, the Board is
amending Regulation D to set the reserve requirement exemption amount
for 2020 at $16.9 million, an increase of $0.6 million from its level
in 2019.\1\
---------------------------------------------------------------------------
\1\ Consistent with Board practice, the low reserve tranche and
reserve requirement exemption amounts have been rounded to the
nearest $0.1 million.
---------------------------------------------------------------------------
Pursuant to Section 19(b)(2) of the Act (12 U.S.C. 461(b)(2)),
transaction account balances maintained at each depository institution
over the reserve requirement exemption amount and up to a certain
amount, known as the low reserve tranche, are subject to a three
percent reserve requirement. Transaction account balances over the low
reserve tranche are subject to a ten percent reserve requirement.
Section 19(b)(2) also provides that, before December 31 of each year,
the Board shall issue a regulation adjusting the low reserve tranche
for the next calendar year. The Act requires the adjustment in the low
reserve tranche to be 80 percent of the percentage increase or decrease
in total transaction accounts of all depository institutions over the
one-year period that ends on the June 30 prior to the adjustment.
Net transaction accounts of all depository institutions increased
3.4 percent, from $2,410 billion to $2,491 billion, between June 30,
2018, and June 30, 2019. Accordingly, the Board is amending Regulation
D to set the low reserve tranche for net transaction accounts for 2020
at $127.5 million, an increase of $3.3 million from 2019.
The new low reserve tranche and reserve requirement exemption
amount will be effective for all depository institutions for the
fourteen-day reserve maintenance period beginning January 16, 2020. For
depository institutions that report deposit data weekly, this
maintenance period corresponds to the fourteen-day computation period
that begins December 17, 2019. For depository institutions that report
deposit data quarterly, this maintenance period corresponds to the
seven-day computation period that begins December 17, 2019.
II. Deposit Reports
Section 11(b)(2) of the Federal Reserve Act authorizes the Board to
require depository institutions to file reports of their liabilities
and assets as
[[Page 64706]]
the Board may determine to be necessary or desirable to enable it to
discharge its responsibility to monitor and control the monetary and
credit aggregates. The Board screens depository institutions each year
and assigns them to one of four deposit reporting panels (weekly
reporters, quarterly reporters, annual reporters, or nonreporters). The
panel assignment for annual reporters is effective in June of the
screening year; the panel assignment for weekly and quarterly reporters
is effective in September of the screening year.
In order to ease reporting burden, the Board permits smaller
depository institutions to submit deposit reports less frequently than
larger depository institutions. The Board permits depository
institutions with net transaction accounts above the reserve
requirement exemption amount but total transaction accounts, savings
deposits, and small time deposits below a specified level (the
``nonexempt deposit cutoff'') to report deposit data quarterly.
Depository institutions with net transaction accounts above the reserve
requirement exemption amount and with total transaction accounts,
savings deposits, and small time deposits greater than or equal to the
nonexempt deposit cutoff are required to report deposit data weekly.
The Board requires certain large depository institutions to report
weekly regardless of the level of their net transaction accounts if the
depository institution's total transaction accounts, savings deposits,
and small time deposits exceeds or is equal to a specified level (the
``reduced reporting limit''). The nonexempt deposit cutoff level and
the reduced reporting limit are adjusted annually, by an amount equal
to 80 percent of the increase, if any, in total transaction accounts,
savings deposits, and small time deposits of all depository
institutions over the one-year period that ends on the June 30 prior to
the adjustment.
From June 30, 2018, to June 30, 2019, total transaction accounts,
savings deposits, and small time deposits at all depository
institutions increased 3.5 percent, from $12,601 billion to $13,046
billion. Accordingly, the Board is increasing the nonexempt deposit
cutoff level by $29.0 million to $1.058 billion for 2020 (up from
$1.029 billion in 2019). The Board is also increasing the reduced
reporting limit by $60.6 million to $2.208 billion for 2020 (up from
$2.147 billion in 2019).\2\
---------------------------------------------------------------------------
\2\ Consistent with Board practice, the nonexempt deposit cutoff
level and the reduced reporting limit have been rounded to the
nearest $1 million.
---------------------------------------------------------------------------
Beginning in 2020, the boundaries of the four deposit reporting
panels will be defined as follows. Those depository institutions with
net transaction accounts over $16.9 million (the reserve requirement
exemption amount) or with total transaction accounts, savings deposits,
and small time deposits greater than or equal to $2.208 billion (the
reduced reporting limit) are subject to detailed reporting, and must
file a Report of Transaction Accounts, Other Deposits and Vault Cash
(FR 2900 report) either weekly or quarterly. Of this group, those with
total transaction accounts, savings deposits, and small time deposits
greater than or equal to $1.058 billion (the nonexempt deposit cutoff
level) are required to file the FR 2900 report each week, while those
with total transaction accounts, savings deposits, and small time
deposits less than $1.058 billion are required to file the FR 2900
report each quarter. Those depository institutions with net transaction
accounts less than or equal to $16.9 million (the reserve requirement
exemption amount) and with total transaction accounts, savings
deposits, and small time deposits less than $2.208 billion (the reduced
reporting limit) are eligible for reduced reporting, and must either
file a deposit report annually or not at all. Of this group, those with
total deposits greater than $16.9 million (but with total transaction
accounts, savings deposits, and small time deposits less than $2.208
billion) are required to file the Annual Report of Deposits and
Reservable Liabilities (FR 2910a) report annually, while those with
total deposits less than or equal to $16.9 million are not required to
file a deposit report. A depository institution that adjusts reported
values on its FR 2910a report in order to qualify for reduced reporting
will be shifted to an FR 2900 reporting panel.
III. Regulatory Analysis
Administrative Procedure Act
The provisions of 5 U.S.C. 553(b) relating to notice of proposed
rulemaking have not been followed in connection with the adoption of
these amendments. The amendments involve expected, ministerial
adjustments prescribed by statute and by the Board's policy concerning
reporting practices. The adjustments in the reserve requirement
exemption amount, the low reserve tranche, the nonexempt deposit cutoff
level, and the reduced reporting limit serve to reduce regulatory
burdens on depository institutions. Accordingly, the Board finds good
cause for determining, and so determines, that notice in accordance
with 5 U.S.C. 553(b) is unnecessary.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) does not apply to a rulemaking
where a general notice of proposed rulemaking is not required.\3\ As
noted previously, the Board has determined that it is unnecessary to
publish a general notice of proposed rulemaking for this final rule.
Accordingly, the RFA's requirements relating to an initial and final
regulatory flexibility analysis do not apply.
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\3\ 5 U.S.C. 603 and 604.
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Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995,\4\ the
Board reviewed this final rule. No collections of information pursuant
to the Paperwork Reduction Act are contained in the final rule.
---------------------------------------------------------------------------
\4\ 44 U.S.C. 3506; 5 CFR part 1320.
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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 is amending 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 204.4 is amended by revising paragraph (f) to read as
follows:
Sec. 204.4 Computation of required reserves.
* * * * *
(f) For all depository institutions, Edge and Agreement
corporations, and United States branches and agencies of foreign banks,
required reserves are computed by applying the reserve requirement
ratios in table 1 to this paragraph (f) to net transaction accounts,
nonpersonal time deposits, and Eurocurrency liabilities of the
institution during the computation period.
[[Page 64707]]
Table 1 to Paragraph (f)
------------------------------------------------------------------------
Reservable liability Reserve requirement
------------------------------------------------------------------------
Net Transaction Accounts: ...........................
$0 to reserve requirement exemption 0 percent of amount.
amount ($16.9 million).
Over reserve requirement exemption 3 percent of amount.
amount ($16.9 million) and up to low
reserve tranche ($127.5 million).
Over low reserve tranche ($127.5 $3,318,000 plus 10 percent
million). of amount over $127.5
million.
Nonpersonal time deposits.............. 0 percent.
Eurocurrency liabilities............... 0 percent.
------------------------------------------------------------------------
By order of the Board of Governors of the Federal Reserve
System, acting through the Director of the Division of Monetary
Affairs under delegated authority, November 19, 2019.
Ann Misback,
Secretary of the Board.
[FR Doc. 2019-25428 Filed 11-22-19; 8:45 am]
BILLING CODE P
