Regulation D: Reserve Requirements of Depository Institutions, 16526-16528 [2020-05805]

Download as PDF 16526 Federal Register / Vol. 85, No. 57 / Tuesday, March 24, 2020 / Rules and Regulations cause for making this amendment effective without 30 days advance publication. By improving the liquidity position of depository institutions subject to reserve requirements, implementation of the rule without 30 days advance publication could help alleviate pressures in short-term funding markets as well as support depository institutions’ ability to provide financing to households and businesses. The Board believes that any delay in implementing the rule would prove contrary to the public interest. The Board is requesting comment on all aspects of the rule and will make any changes that it considers appropriate or necessary after review of any comments received. V. Regulatory Flexibility Act The Regulatory Flexibility Act requires an agency that is issuing a final rule to prepare and make available a regulatory flexibility analysis that describes the impact of the final rule on small entities. 5 U.S.C. 603(a). The Regulatory Flexibility Act provides that an agency is not required to prepare and publish a regulatory flexibility analysis if the agency certifies that the final rule will not have a significant economic impact on a substantial number of small entities. 5 U.S.C. 605(b). Pursuant to section 605(b), the Board certifies that this interim final rule will not have a significant economic impact on a substantial number of small entities. The interim final rule reduces reserve requirement ratios for all depository institutions to zero percent. All depository institutions, including small depository institutions, will benefit from the elimination of reserve requirements. There are no new reporting, recordkeeping, or other compliance requirements associated with the interim final rule. VI. Paperwork Reduction Act In accordance with the Paperwork Reduction Act (44 U.S.C. 3506; 5 CFR 1320 Appendix A.1), the Board has reviewed the interim final rule under authority delegated to the Board by the Office of Management and Budget. The rule contains no collections of information pursuant to the Paperwork Reduction Act. List of Subjects in 12 CFR Part 204 Banks, Banking, Reporting and recordkeeping requirements. Authority and Issuance 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), 371a, 461, 601, 611, and 3105. 2. In § 204.4, paragraph (f) is revised to read as follows: ■ § 204.4 Computation of required reserves. * VII. Plain Language Section 772 of the Gramm-LeachBliley Act requires the Board to use ‘‘plain language’’ in all proposed and final rules. In light of this requirement, the Board has sought to present the interim final rule in a simple and straightforward manner. The Board invites comment on whether the Board could take additional steps to make the rule easier to understand. * * * * (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. 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, March 16, 2020. Ann Misback, Secretary of the Board. [FR Doc. 2020–05806 Filed 3–23–20; 8:45 am] BILLING CODE 6210–01–P FEDERAL RESERVE SYSTEM 12 CFR Part 204 lotter on DSKBCFDHB2PROD with RULES [Docket No. R–1701; RIN 7100–AF 75] Regulation D: Reserve Requirements of Depository Institutions Board of Governors of the Federal Reserve System. AGENCY: ACTION: Final rule. VerDate Sep<11>2014 15:59 Mar 23, 2020 Jkt 250001 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 0.10 percent and IOER is 0.10 percent, a 1.00 percentage point decrease from their prior levels. The amendments are intended to enhance the role of IORR and IOER in maintaining the Federal funds rate in the target range established by the Federal Open Market Committee (‘‘FOMC’’ or ‘‘Committee’’). SUMMARY: PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 0 0 0 0 0 percent of amount. percent of amount. percent of amount. percent. percent. Effective date: The amendments to part 204 (Regulation D) are effective March 24, 2020. Applicability date: The IORR and IOER rate changes are applicable on March 16, 2020. FOR FURTHER INFORMATION CONTACT: Sophia H. Allison, Senior Special Counsel (202–452–3565), 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: DATES: E:\FR\FM\24MRR1.SGM 24MRR1 Federal Register / Vol. 85, No. 57 / Tuesday, March 24, 2020 / Rules and Regulations I. Statutory and Regulatory Background For monetary policy purposes, section 19 of the Federal Reserve Act (‘‘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 1.10 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 0.10 percent and IOER is 0.10 percent. The amendments represent a 1.00 percentage point decrease in IORR and IOER. The amendments to each rate were associated with a decrease in the target range for the federal funds rate, from a target range of 1 to 11⁄4 percent to a target range of 0 to 1⁄4 percent, announced by the FOMC on March 15, 2020 with an effective date of March 16, 2020. The FOMC’s press release on the same day as the announcement noted that: lotter on DSKBCFDHB2PROD with RULES The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States. Global financial conditions have also been significantly affected. Available economic data show that the U.S. economy came into this challenging period on a strong footing. Information received since the Federal Open Market Committee met in January indicates that the labor market remained strong through February and economic activity rose at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has 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). VerDate Sep<11>2014 15:59 Mar 23, 2020 Jkt 250001 remained low. Although household spending rose at a moderate pace, business fixed investment and exports remained weak. More recently, the energy sector has come under stress. On a 12-month basis, overall inflation and inflation for items other than food and energy are running below 2 percent. Marketbased measures of inflation compensation have declined; 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. The effects of the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook. In light of these developments, the Committee decided to lower the target range for the federal funds rate to 0 to 1⁄4 percent. The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals. This action will help support economic activity, strong labor market conditions, and inflation returning to the Committee’s symmetric 2 percent objective. A Federal Reserve Implementation note released simultaneously with the announcement stated: The Board of Governors of the Federal Reserve System voted unanimously to set the interest rate paid on required and excess reserve balances at 0.10 percent, effective March 16, 2020. As a result, the Board is amending § 204.10(b)(5) of Regulation D to change IORR to 0.10 percent and IOER to 0.10 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. IV. Regulatory Flexibility Analysis The Regulatory Flexibility Act (‘‘RFA’’) does not apply to a rulemaking where a general notice of proposed rulemaking is not required.10 As noted previously, the Board has determined that it is unnecessary and contrary to the public interest to publish a general notice of proposed rulemaking for this final rule. Accordingly, the RFA’s requirements relating to an initial and final regulatory flexibility analysis do not apply. V. Paperwork Reduction Act In accordance with the Paperwork Reduction Act (‘‘PRA’’) of 1995,11 the Board reviewed the final rule under the authority delegated to the Board by the Office of Management and Budget. The final rule contains no requirements subject to the PRA. List of Subjects in 12 CFR Part 204 Banks, Banking, Reporting and recordkeeping requirements. Authority and Issuance For the reasons set forth in the preamble, the Board amends 12 CFR part 204 as follows: 95 U.S.C. 553(d). U.S.C. 603, 604. 11 44 U.S.C. 3506; see 5 CFR part 1320 Appendix A.1. 10 5 75 85 PO 00000 U.S.C. 551 et seq. U.S.C. 553(b)(3)(A). Frm 00009 Fmt 4700 Sfmt 4700 16527 E:\FR\FM\24MRR1.SGM 24MRR1 16528 Federal Register / Vol. 85, No. 57 / Tuesday, March 24, 2020 / Rules and Regulations DATES: 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: ■ * Naa Awaa Tagoe, Senior Associate Director, Office of Financial Analysis, Modeling and Simulations, (202) 649–3140, naaawaa.tagoe@fhfa.gov; Karen Heidel, Assistant General Counsel, Office of General Counsel, (202) 649–3073, karen.heidel@fhfa.gov; or Mark D. Laponsky, Deputy General Counsel, Office of General Counsel, (202) 649– 3054, mark.laponsky@fhfa.gov. The telephone number for the Telecommunications Device for the Deaf is (800) 877–8339. SUPPLEMENTARY INFORMATION: FOR FURTHER INFORMATION CONTACT: ■ § 204.10 This rule is effective: March 24, 2020. Payment of interest on balances. * * * * (b) * * * (5) The rates for IORR and IOER are: TABLE 1 TO PARAGRAPH (b)(5) I. Background Section 401 of the EGRRCPA, (Pub. L. 115–174, section 401) amended the IORR ........................................... 0.10 Dodd-Frank Act requirements to IOER ........................................... 0.10 implement stress testing. Prior to the passage of the EGRRCPA,1 section 165(i) of the Dodd-Frank Act 2 required each * * * * * financial company with total By order of the Board of Governors of the consolidated assets of more than $10 Federal Reserve System, March 16, 2020. billion to conduct annual stress tests. In Ann Misback, addition, section 165 required FHFA to Secretary of the Board. issue regulations for regulated entities to [FR Doc. 2020–05805 Filed 3–23–20; 8:45 am] conduct their stress tests, which were BILLING CODE 6210–01–P required to include at least three different stress testing scenarios: ‘‘baseline,’’ ‘‘adverse,’’ and ‘‘severely FEDERAL HOUSING FINANCE adverse.’’ 3 In September 2013, FHFA AGENCY published in the Federal Register a final rule implementing the Dodd-Frank Act 12 CFR Part 1238 stress testing requirements. FHFA’s RIN 2590–AB05 regulation, located at 12 CFR part 1238, requires each regulated entity to Stress Testing of Regulated Entities conduct an annual stress test based on scenarios provided by FHFA and AGENCY: Federal Housing Finance consistent with FHFA prescribed Agency. methodologies and practices. The ACTION: Final rule. regulation also requires that the agency issue to the regulated entities stress test SUMMARY: The Federal Housing Finance scenarios that are generally consistent Agency (FHFA) is adopting a final rule with and comparable to those developed that amends its stress testing rule, by the FRB not later than 30 days after consistent with section 401 of the the FRB publishes its scenarios.4 Economic Growth, Regulatory Relief, Section 401 of EGRRCPA amended and Consumer Protection Act certain aspects of the stress testing (EGRRCPA). These amendments adopt requirements applicable to financial the proposed amendments without companies in section 165(i) of the Doddchange to modify the minimum Frank Act.5 Specifically, after 18 threshold for the regulated entities to months, section 401 of EGRRCPA raises conduct stress tests increased from $10 the minimum asset threshold for billion to $250 billion; removal of the application of the stress testing requirements for Federal Home Loan requirement from $10 billion to $250 Banks (Banks) subject to stress testing; billion in total consolidated assets, and removal of the adverse scenario revises the requirement for financial from the list of required scenarios. These amendments align FHFA’s rule 1 Public Law 115–174, 132 Stat. 1296 (2018). with rules adopted by other financial 2 Public Law 111–203, 124 Stat. 1376 (2010), institution regulators that implement codified at 12 U.S.C. 5365. the Dodd-Frank Wall Street Reform and 3 12 U.S.C. 5365(i)(2)(C). Consumer Protection Act (Dodd-Frank 4 12 CFR 1238.3(b). Act) stress testing requirements, as 5 Public Law 115–174, 132 Stat. 1296–1368 amended by EGRRCPA. (2018). lotter on DSKBCFDHB2PROD with RULES Rate (percent) VerDate Sep<11>2014 15:59 Mar 23, 2020 Jkt 250001 PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 companies to conduct stress tests ‘‘annually,’’ and instead requires them to conduct stress tests ‘‘periodically’’, and no longer requires the stress test to include an ‘‘adverse’’ scenario, thus reducing the number of required stress test scenarios from three to two. II. Discussion of Public Comments On December 16, 2019, FHFA published in the Federal Register proposed amendments to the stress testing requirements for the regulated entities. The comment period closed on January 15, 2020. FHFA received one comment which stated that the threshold of $250 billion in total consolidated assets was too high and lowering the threshold to $100 billion in total consolidated assets would be more appropriate. EGRRCPA set the threshold at $250 billion in total consolidated assets and the proposed rule reflects this statutory requirement. The Enterprises will continue to be covered by the rule at its new threshold, however, the Banks will not. After several years of assessing the Banks’ stress tests, FHFA believes that its other supervision tools are sufficient for the agency’s purposes, and that the additional burden on the Banks of conducting the annual stress tests is not necessary. FHFA retains under its general supervisory powers the discretion to require stress testing by the Banks if FHFA determines that it would be useful. Therefore, FHFA is adopting as its final rule the same rule proposed on December 16, 2019, without any change. III. Summary of Final Rule FHFA is adopting the proposed revisions to FHFA’s rule without change as follows: The rule discontinues the Dodd-Frank Act stress testing of the Banks; prescribes the frequency of stress testing; and reduces the number of scenarios mandated for Enterprise Dodd-Frank Act stress testing. These revisions are described in more detail below. A. Minimum Asset Threshold As described above, section 401 of EGRRCPA amends section 165 of the Dodd-Frank Act by raising the minimum threshold for financial companies required to conduct stress tests from $10 billion to $250 billion. As there are no Banks with total consolidated assets of over $250 billion, the Banks will no longer be subject to the stress testing requirements of this rule. As the total consolidated assets for each Enterprise exceed the $250 billion threshold, the Enterprises remain subject to stress testing under this rule. E:\FR\FM\24MRR1.SGM 24MRR1

Agencies

[Federal Register Volume 85, Number 57 (Tuesday, March 24, 2020)]
[Rules and Regulations]
[Pages 16526-16528]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05805]


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FEDERAL RESERVE SYSTEM

12 CFR Part 204

[Docket No. R-1701; RIN 7100-AF 75]


Regulation D: Reserve Requirements of Depository Institutions

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule.

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SUMMARY: The Board of Governors of the Federal Reserve System 
(``Board'') is amending Regulation D (Reserve Requirements of 
Depository Institutions) to revise the rate of interest paid on 
balances maintained to satisfy reserve balance requirements (``IORR'') 
and the rate of interest paid on excess balances (``IOER'') maintained 
at Federal Reserve Banks by or on behalf of eligible institutions. The 
final amendments specify that IORR is 0.10 percent and IOER is 0.10 
percent, a 1.00 percentage point decrease from their prior levels. The 
amendments are intended to enhance the role of IORR and IOER in 
maintaining the Federal funds rate in 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 March 24, 2020.
    Applicability date: The IORR and IOER rate changes are applicable 
on March 16, 2020.

FOR FURTHER INFORMATION CONTACT: Sophia H. Allison, Senior Special 
Counsel (202-452-3565), 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: 

[[Page 16527]]

I. Statutory and Regulatory Background

    For monetary policy purposes, section 19 of the Federal Reserve Act 
(``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 1.10 percent for both IORR 
and IOER.\6\
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    \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 0.10 percent and IOER is 0.10 percent. The amendments 
represent a 1.00 percentage point decrease in IORR and IOER. The 
amendments to each rate were associated with a decrease in the target 
range for the federal funds rate, from a target range of 1 to 1\1/4\ 
percent to a target range of 0 to \1/4\ percent, announced by the FOMC 
on March 15, 2020 with an effective date of March 16, 2020. The FOMC's 
press release on the same day as the announcement noted that:

    The coronavirus outbreak has harmed communities and disrupted 
economic activity in many countries, including the United States. 
Global financial conditions have also been significantly affected. 
Available economic data show that the U.S. economy came into this 
challenging period on a strong footing. Information received since 
the Federal Open Market Committee met in January indicates that the 
labor market remained strong through February and economic activity 
rose at a moderate rate. Job gains have been solid, on average, in 
recent months, and the unemployment rate has remained low. Although 
household spending rose at a moderate pace, business fixed 
investment and exports remained weak. More recently, the energy 
sector has come under stress. 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 have 
declined; 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. The effects of the 
coronavirus will weigh on economic activity in the near term and 
pose risks to the economic outlook. In light of these developments, 
the Committee decided to lower the target range for the federal 
funds rate to 0 to \1/4\ percent. The Committee expects to maintain 
this target range until it is confident that the economy has 
weathered recent events and is on track to achieve its maximum 
employment and price stability goals. This action will help support 
economic activity, strong labor market conditions, and inflation 
returning to the Committee's symmetric 2 percent objective.

    A Federal Reserve Implementation note released simultaneously with 
the announcement stated:

    The Board of Governors of the Federal Reserve System voted 
unanimously to set the interest rate paid on required and excess 
reserve balances at 0.10 percent, effective March 16, 2020.

    As a result, the Board is amending Sec.  204.10(b)(5) of Regulation 
D to change IORR to 0.10 percent and IOER to 0.10 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.

IV. Regulatory Flexibility Analysis

    The Regulatory Flexibility Act (``RFA'') does not apply to a 
rulemaking where a general notice of proposed rulemaking is not 
required.\10\ As noted previously, the Board has determined that it is 
unnecessary and contrary to the public interest to publish a general 
notice of proposed rulemaking for this final rule. Accordingly, the 
RFA's requirements relating to an initial and final regulatory 
flexibility analysis do not apply.
---------------------------------------------------------------------------

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

V. Paperwork Reduction Act

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

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

    Banks, Banking, Reporting and recordkeeping requirements.

Authority and Issuance

    For the reasons set forth in the preamble, the Board amends 12 CFR 
part 204 as follows:

[[Page 16528]]

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........................................................        0.10
IOER........................................................        0.10
------------------------------------------------------------------------

* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, March 16, 2020.
Ann Misback,
Secretary of the Board.
[FR Doc. 2020-05805 Filed 3-23-20; 8:45 am]
BILLING CODE 6210-01-P