Reserve Requirements of Depository Institutions, 79821-79823 [2020-27083]
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Federal Register / Vol. 85, No. 239 / Friday, December 11, 2020 / Rules and Regulations
accordance with this section. If DOE
does not notify the applicant of the
disposition of the petition for interim
waiver, in writing, within 45 business
days of receipt of the petition, the
interim waiver is granted utilizing the
alternate test procedure requested in the
petition. Notice of DOE’s determination
on the petition for interim waiver will
be posted on the Department’s website
not later than 5 business days after the
end of the review period. Such
determination will also be submitted for
publication in the Federal Register.
(iii) A petition submitted under this
paragraph (whether for an interim
waiver or waiver) is considered
‘‘received’’ on the date it is received by
the Department through the
Department’s established email box for
receipt of waiver petitions or, if
delivered by mail, on the date the
waiver petition is stamped as received
by the Department.
*
*
*
*
*
(h) Duration. (1) Interim waivers
remain in effect until the earlier of the
following:
(i) DOE publishes a decision and
order on a petition for waiver pursuant
to paragraph (f) of this section in the
Federal Register; or
(ii) DOE publishes in the Federal
Register a new or amended test
procedure that addresses the issues
presented in the waiver.
(2) Within one year of a determination
to grant an interim waiver, DOE will
complete either paragraph (h)(1)(i) or (ii)
of this section as specified in this
section.
(3) When DOE amends the test
procedure to address the issues
presented in a waiver, the waiver will
automatically terminate on the date on
which use of that test procedure is
required to demonstrate compliance.
(i) Compliance certification. (1) If the
alternate test procedure specified in the
interim waiver differs from the alternate
test procedure specified by DOE in a
subsequent decision and order granting
the petition for waiver, a manufacturer
who has already certified basic models
using the procedure permitted in DOE’s
grant of an interim test procedure
waiver is not required to re-test and rerate those basic models so long as: The
manufacturer used that alternative
procedure to certify the compliance of
the basic model after DOE granted the
company’s interim waiver request;
changes have not been made to those
basic models that would cause them to
use more energy or otherwise be less
energy efficient; and the manufacturer
does not modify the certified rating.
However, if DOE ultimately denies the
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petition for waiver, or if the alternate
test procedure specified in the interim
waiver differs from the alternate test
procedure specified by DOE in a
subsequent decision and order, DOE
will provide a period of 180 days before
the manufacturer is required to use the
DOE test procedure or the alternate test
procedure specified in the decision and
order to make representations of energy
efficiency.
*
*
*
*
*
[FR Doc. 2020–26321 Filed 12–10–20; 8:45 am]
BILLING CODE 6450–01–P
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Regulation D; Docket No. R–1733]
RIN 7100–AG 03
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 2021. The
annual indexation of these amounts is
required notwithstanding the Board’s
action in March 2020 setting all reserve
requirement ratios to zero. The
Regulation D amendments set the
reserve requirement exemption amount
for 2021 at $21.1 million of reservable
liabilities (up from 16.9 million in
2020). The Regulation D amendments
also set the amount of net transaction
accounts at each depository institution
(over the reserve requirement exemption
amount) that could be subject to a
reserve requirement ratio of not more
than 3 percent (and which may be zero)
in 2021 at $182.9 million (up from
$127.5 million in 2020). 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
‘‘Act’’). The annual indexation of the
reserve requirement exemption amount
and low reserve tranche, though
required by statute, will not affect
depository institutions’ reserve
requirements, which will remain zero.
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
SUMMARY:
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79821
depository institutions must submit
deposit reports.
DATES: Effective date: January 11, 2021.
Compliance dates: The new low
reserve tranche and reserve requirement
exemption amount will apply to the
fourteen-day reserve maintenance
period that begins January 14, 2021. For
depository institutions that report
deposit data weekly, this maintenance
period corresponds to the fourteen-day
computation period that begins
December 15, 2020. For depository
institutions that report deposit data
quarterly, this maintenance period
corresponds to the seven-day
computation period that begins
December 15, 2020. 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 2021.
FOR FURTHER INFORMATION CONTACT:
Sophia H. Allison, Senior Special
Counsel (202–452–3565), or Justyna
Bolter, Senior Attorney (202/452–2686),
Legal Division, or Kristen Payne, Senior
Financial Institution and Policy Analyst
(202–452–2872), or Francis A. Martinez,
Lead 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 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 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
Section 19(b) of the Act authorizes
different ranges of reserve requirement
ratios depending on the amount of
transaction account balances at a
depository institution. Section
19(b)(11)(A) of the Act (12 U.S.C.
461(b)(11)(A)) provides that a zero
percent reserve requirement ratio shall
apply at each depository institution to
total reservable liabilities that do not
exceed a certain amount, known as the
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79822
Federal Register / Vol. 85, No. 239 / Friday, December 11, 2020 / Rules and Regulations
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
31.0 percent, from $8,321 billion to
$10,902 billion, between June 30, 2019,
and June 30, 2020. Accordingly, the
Board is amending Regulation D (12
CFR part 204) to set the reserve
requirement exemption amount for 2021
at $21.1 million, an increase of $4.2
million from its level in 2020.1
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, may be subject to a
reserve requirement ratio of not more
than 3 percent (and which may be zero).
Transaction account balances over the
low reserve tranche may be subject to a
reserve requirement ratio of not more
than 14 percent (and which may be
zero). 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 54.3
percent, from $2,505 billion to $3,866
billion, between June 30, 2019, and June
30, 2020. Accordingly, the Board is
amending Regulation D to set the low
reserve tranche for net transaction
accounts for 2021 at $182.9 million, an
increase of $55.4 million from 2020.
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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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
14, 2021. For depository institutions
that report deposit data weekly, this
maintenance period corresponds to the
fourteen-day computation period that
begins December 15, 2020. For
depository institutions that report
deposit data quarterly, this maintenance
period corresponds to the seven-day
computation period that begins
December 15, 2020.
Effective March 26, 2020, the Board
reduced reserve requirement ratios on
all net transaction accounts to zero
percent, eliminating reserve
requirements for all depository
institutions. The annual indexation of
the reserve requirement exemption
amount and the low reserve tranche for
2021 is required by statute but will not
affect depository institutions’ reserve
requirements, which will remain zero.
II. Deposit Reports
Section 11(b)(2) of the Act authorizes
the Board to require depository
institutions to file reports of their
liabilities and assets as 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
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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, 2019, to June 30, 2020,
total transaction accounts, savings
deposits, and small time deposits at all
depository institutions increased 24.0
percent, from $13,053 billion to $16,191
billion. Accordingly, the Board is
increasing the nonexempt deposit cutoff
level by $203.5 million to $1.262 billion
for 2021 (up from $1.058 billion in
2020). The Board is also increasing the
reduced reporting limit by $424.6
million to $2.633 billion for 2021 (up
from $2.208 billion in 2020).2
Beginning in 2021, the boundaries of
the four deposit reporting panels will be
defined as follows. Those depository
institutions with net transaction
accounts over $21.1 million (the reserve
requirement exemption amount) or with
total transaction accounts, savings
deposits, and small time deposits
greater than or equal to $2.633 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
$1.262 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 $1.262 billion are required to file
the FR 2900 report each quarter. Those
depository institutions with net
transaction accounts less than or equal
to $21.1 million (the reserve
requirement exemption amount) and
with total transaction accounts, savings
deposits, and small time deposits less
than $2.633 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 $21.1 million (but with total
transaction accounts, savings deposits,
and small time deposits less than $2.633
billion) are required to file the Annual
2 Consistent with Board practice, the nonexempt
deposit cutoff level and the reduced reporting limit
have been rounded to the nearest $1 million.
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Federal Register / Vol. 85, No. 239 / Friday, December 11, 2020 / Rules and Regulations
Report of Deposits and Reservable
Liabilities (FR 2910a) report annually,
while those with total deposits less than
or equal to $21.1 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.
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), 461,
601, 611, and 3105.
2. Section 204.4 is amended by
revising paragraph (f) to read as follows:
■
§ 204.4
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.
79823
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.
TABLE 1 TO PARAGRAPH (f)
Reservable
liability
Reserve requirement
Net Transaction Accounts:.
$0 to reserve requirement exemption amount ($21.1 million) ...........................................................................
Over reserve requirement exemption amount ($21.1 million) and up to low reserve tranche ($182.9 million)
Over low reserve tranche ($182.9 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.
Ann Misback,
Secretary of the Board.
[FR Doc. 2020–27083 Filed 12–10–20; 8:45 am]
BILLING CODE 6210–01–P
DATES:
Federal Aviation Administration
FOR FURTHER INFORMATION CONTACT:
14 CFR Parts 1, 61, 101, 107
[Docket No. FAA–2020–1067; Amdt. Nos. 1–
73, 61–148, 101–10, 107–6]
RIN 2120–AL43
Federal Aviation
Administration (FAA), Department of
Transportation (DOT).
ACTION: Final rule.
AGENCY:
This action removes
regulations codifying the Special Rule
for Model Aircraft because of a change
in applicable law. This action also
makes conforming updates to FAA
regulations.
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SUMMARY:
U.S.C. 603 and 604.
VerDate Sep<11>2014
22:08 Dec 10, 2020
4 44
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This rule is effective on
December 11, 2020.
DEPARTMENT OF TRANSPORTATION
Removal of the Special Rule for Model
Aircraft
35
0 percent of amount.
0 percent of amount.
$0 plus 0 percent of amount over
$182.9 million.
0 percent.
0 percent.
PO 00000
Jonathan W. Cross, Regulations
Division, Office of the Chief Counsel,
Federal Aviation Administration, 800
Independence Avenue SW, Washington,
DC 20591; telephone 202–267–7173;
email: jonathan.cross@faa.gov.
SUPPLEMENTARY INFORMATION: The FAA
Modernization and Reform Act of 2012,
Public Law 112–95 (February 14, 2012)
(FMRA) included a number of
provisions related to unmanned aircraft
systems (UAS) operating in the National
Airspace System (NAS). Section 336 of
the Act, titled ‘‘Special Rule for Model
Aircraft,’’ defined ‘‘model aircraft’’ and
specifically prohibited FAA from
promulgating a rule or regulation
regarding model aircraft that were
operated under certain circumstances.
That prohibition notwithstanding,
U.S.C. 3506; 5 CFR part 1320.
Frm 00045
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]]>Agencies
[Federal Register Volume 85, Number 239 (Friday, December 11, 2020)]
[Rules and Regulations]
[Pages 79821-79823]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27083]
=======================================================================
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FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Regulation D; Docket No. R-1733]
RIN 7100-AG 03
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 2021. The
annual indexation of these amounts is required notwithstanding the
Board's action in March 2020 setting all reserve requirement ratios to
zero. The Regulation D amendments set the reserve requirement exemption
amount for 2021 at $21.1 million of reservable liabilities (up from
16.9 million in 2020). The Regulation D amendments also set the amount
of net transaction accounts at each depository institution (over the
reserve requirement exemption amount) that could be subject to a
reserve requirement ratio of not more than 3 percent (and which may be
zero) in 2021 at $182.9 million (up from $127.5 million in 2020). 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 ``Act''). The annual indexation of the reserve
requirement exemption amount and low reserve tranche, though required
by statute, will not affect depository institutions' reserve
requirements, which will remain zero. 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: January 11, 2021.
Compliance dates: The new low reserve tranche and reserve
requirement exemption amount will apply to the fourteen-day reserve
maintenance period that begins January 14, 2021. For depository
institutions that report deposit data weekly, this maintenance period
corresponds to the fourteen-day computation period that begins December
15, 2020. For depository institutions that report deposit data
quarterly, this maintenance period corresponds to the seven-day
computation period that begins December 15, 2020. 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 2021.
FOR FURTHER INFORMATION CONTACT: Sophia H. Allison, Senior Special
Counsel (202-452-3565), or Justyna Bolter, Senior Attorney (202/452-
2686), Legal Division, or Kristen Payne, Senior Financial Institution
and Policy Analyst (202-452-2872), or Francis A. Martinez, Lead
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 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 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
Section 19(b) of the Act authorizes different ranges of reserve
requirement ratios depending on the amount of transaction account
balances at a depository institution. Section 19(b)(11)(A) of the Act
(12 U.S.C. 461(b)(11)(A)) provides that a zero percent reserve
requirement ratio shall apply at each depository institution to total
reservable liabilities that do not exceed a certain amount, known as
the
[[Page 79822]]
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 31.0 percent, from $8,321 billion to $10,902 billion,
between June 30, 2019, and June 30, 2020. Accordingly, the Board is
amending Regulation D (12 CFR part 204) to set the reserve requirement
exemption amount for 2021 at $21.1 million, an increase of $4.2 million
from its level in 2020.\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, may be subject to a reserve
requirement ratio of not more than 3 percent (and which may be zero).
Transaction account balances over the low reserve tranche may be
subject to a reserve requirement ratio of not more than 14 percent (and
which may be zero). 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
54.3 percent, from $2,505 billion to $3,866 billion, between June 30,
2019, and June 30, 2020. Accordingly, the Board is amending Regulation
D to set the low reserve tranche for net transaction accounts for 2021
at $182.9 million, an increase of $55.4 million from 2020.
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 14, 2021. For
depository institutions that report deposit data weekly, this
maintenance period corresponds to the fourteen-day computation period
that begins December 15, 2020. For depository institutions that report
deposit data quarterly, this maintenance period corresponds to the
seven-day computation period that begins December 15, 2020.
Effective March 26, 2020, the Board reduced reserve requirement
ratios on all net transaction accounts to zero percent, eliminating
reserve requirements for all depository institutions. The annual
indexation of the reserve requirement exemption amount and the low
reserve tranche for 2021 is required by statute but will not affect
depository institutions' reserve requirements, which will remain zero.
II. Deposit Reports
Section 11(b)(2) of the Act authorizes the Board to require
depository institutions to file reports of their liabilities and assets
as 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, 2019, to June 30, 2020, total transaction accounts,
savings deposits, and small time deposits at all depository
institutions increased 24.0 percent, from $13,053 billion to $16,191
billion. Accordingly, the Board is increasing the nonexempt deposit
cutoff level by $203.5 million to $1.262 billion for 2021 (up from
$1.058 billion in 2020). The Board is also increasing the reduced
reporting limit by $424.6 million to $2.633 billion for 2021 (up from
$2.208 billion in 2020).\2\
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\2\ Consistent with Board practice, the nonexempt deposit cutoff
level and the reduced reporting limit have been rounded to the
nearest $1 million.
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Beginning in 2021, the boundaries of the four deposit reporting
panels will be defined as follows. Those depository institutions with
net transaction accounts over $21.1 million (the reserve requirement
exemption amount) or with total transaction accounts, savings deposits,
and small time deposits greater than or equal to $2.633 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 $1.262 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 $1.262 billion are required to file the FR 2900
report each quarter. Those depository institutions with net transaction
accounts less than or equal to $21.1 million (the reserve requirement
exemption amount) and with total transaction accounts, savings
deposits, and small time deposits less than $2.633 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 $21.1 million (but with total transaction
accounts, savings deposits, and small time deposits less than $2.633
billion) are required to file the Annual
[[Page 79823]]
Report of Deposits and Reservable Liabilities (FR 2910a) report
annually, while those with total deposits less than or equal to $21.1
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.
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\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.
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)
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.
Table 1 to Paragraph (f)
------------------------------------------------------------------------
Reservable liability Reserve requirement
------------------------------------------------------------------------
Net Transaction Accounts:..................
$0 to reserve requirement exemption amount 0 percent of amount.
($21.1 million).
Over reserve requirement exemption amount 0 percent of amount.
($21.1 million) and up to low reserve
tranche ($182.9 million).
Over low reserve tranche ($182.9 million).. $0 plus 0 percent of amount
over $182.9 million.
Nonpersonal time deposits.................. 0 percent.
Eurocurrency liabilities................... 0 percent.
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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.
Ann Misback,
Secretary of the Board.
[FR Doc. 2020-27083 Filed 12-10-20; 8:45 am]
BILLING CODE 6210-01-P
