Regulation D: Reserve Requirements of Depository Institutions, 16526-16528 [2020-05805]
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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
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[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.
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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:
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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:
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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:
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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).
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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).
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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).
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Rate
(percent)
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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.
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]]>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]
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\1\ 12 U.S.C. 461(b).
\2\ 12 CFR 204.5(a)(1).
\3\ 12 U.S.C. 461(b)(1)(A) & (b)(12)(A).
\4\ See 12 U.S.C. 461(b)(1)(A) & (b)(12)(C); see also 12 CFR
204.2(y).
\5\ See 12 U.S.C. 461(b)(12)(B).
\6\ See 12 CFR 204.10(b)(5).
---------------------------------------------------------------------------
II. Amendments to IORR and IOER
The Board is amending Sec. 204.10(b)(5) of Regulation D to specify
that IORR is 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\
---------------------------------------------------------------------------
\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.
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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.
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\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
