Regulation D: Reserve Requirements of Depository Institutions, 29937-29939 [2021-11758]
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General Government Appropriations
Act of 1999
Section 654 of the Treasury and
General Government Appropriations
Act of 1999 (Pub. L. 105–277) requires
Federal agencies to issue a Family
Policymaking Assessment for any rule
that may affect family well-being. This
rule does not have any impact on the
autonomy or integrity of the family as
an institution. Accordingly, DOE has
concluded that it is not necessary to
prepare a Family Policymaking
Assessment.
J. Review Under Executive Order 12630,
‘‘Governmental Actions and
Interference With Constitutionally
Protected Property Rights’’
DOE has determined, under Executive
Order 12630, ‘‘Governmental Actions
and Interference with Constitutionally
Protected Property Rights,’’ 53 FR 8859
(March 18, 1988), that this rule does not
result in any takings which might
require compensation under the Fifth
Amendment to the United States
Constitution.
K. Review Under the Treasury and
General Government Appropriations
Act, 2001
Section 515 of the Treasury and
General Government Appropriations
Act, 2001 (44 U.S.C. 3516, note)
provides for agencies to review most
disseminations of information to the
public under guidelines established by
each agency pursuant to general
guidelines issued by OMB. OMB’s
guidelines were published at 67 FR
8452 (February 22, 2002), and DOE’s
guidelines were published at 67 FR
62446 (October 7, 2002). DOE has
reviewed this rule under the OMB and
DOE guidelines and has concluded that
it is consistent with applicable policies
in those guidelines.
L. Review Under Executive Order 13211,
‘‘Actions Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use’’
Executive Order 13211, ‘‘Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use,’’ 66 FR 28355 (May
22, 2001), requires Federal agencies to
prepare and submit to the Office of
Information and Regulatory Affairs
(OIRA), Office of Management and
Budget, a Statement of Energy Effects for
any proposed significant energy action.
A ‘‘significant energy action’’ is defined
as any action by an agency that
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promulgated or is expected to lead to
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Approval of the Office of the Secretary
The Secretary of Energy has approved
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List of Subjects in 10 CFR Part 1061
Administrative practice and
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Signing Authority
This document of the Department of
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Treena V. Garrett,
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Department of Energy.
Accordingly, the final rule adding 10
CFR part 1061, published in the Federal
Register on January 6, 2021 (86 FR 45),
is withdrawn.
■
[FR Doc. 2021–11753 Filed 6–3–21; 8:45 am]
BILLING CODE 6450–01–P
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Docket No. R–1737]
Board of Governors of the
Federal Reserve System.
ACTION: Final rule.
AGENCY:
Frm 00007
Fmt 4700
I. Statutory and Regulatory Background
Section 19(b)(2) of the Federal
Reserve Act (‘‘Act’’) 1 requires each
depository institution to maintain
reserves against its transaction accounts,
nonpersonal time deposits, and
Eurocurrency liabilities within ratios
prescribed by the Board for the purpose
of implementing monetary policy.2 The
Board’s Regulation D (Reserve
Requirements of Depository Institutions,
12 CFR part 204) implements the
reserve requirements provisions of
section 19. Effective March 24, 2020, the
Board amended Regulation D to set all
reserve requirement ratios for
transaction accounts to zero percent.3
Section 19(b)(12) of the Act provides
that balances maintained by or on behalf
of ‘‘eligible institutions’’ in accounts at
Federal Reserve Banks may receive
U.S.C. 461(b)(2).
requirement ratios for nonpersonal time
deposits and Eurocurrency liabilities have been set
at zero percent since 1990. See Regulation D
(Reserve Requirements of Depository Institutions),
Final Rule, 55 FR 50540 (Dec. 7, 1990).
3 Regulation D (Reserve Requirements of
Depository Institutions), Final Rule, 86 FR 8853
(February 10, 2021); see Regulation D (Reserve
Requirements of Depository Institutions), Interim
Final Rule, 85 FR 16525 (March 24, 2020).
2 Reserve
Regulation D: Reserve Requirements
of Depository Institutions
PO 00000
The Board of Governors of the
Federal Reserve System (‘‘Board’’) is
adopting amendments to Regulation D
(Reserve Requirements of Depository
Institutions) to eliminate references to
an ‘‘interest on required reserves’’ rate
and to an ‘‘interest on excess reserves’’
rate and replace them with a reference
to a single ‘‘interest on reserve
balances’’ rate; and to simplify the
formula used to calculate the amount of
interest paid on balances maintained by
or on behalf of eligible institutions in
master accounts at Federal Reserve
Banks, and to make other conforming
amendments. The Board requested
comment on the amendments and
received one comment that addressed
issues not raised by the proposed
amendments. Accordingly, the Board is
adopting the final rule as proposed
without change.
DATES: Effective July 29, 2021.
FOR FURTHER INFORMATION CONTACT:
Sophia H. Allison, Senior Special
Counsel, (202–452–3565), Legal
Division, or Matthew Malloy (202–452–
2416), Division of Monetary Affairs, or
Heather Wiggins (202–452–3674),
Division of Monetary Affairs; for users
of Telecommunications Device for the
Deaf (TDD) only, contact 202–263–4869;
Board of Governors of the Federal
Reserve System, 20th and C Streets NW,
Washington, DC 20551.
SUPPLEMENTARY INFORMATION:
SUMMARY:
1 12
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Federal Register / Vol. 86, No. 106 / Friday, June 4, 2021 / Rules and Regulations
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.4 Eligible
institutions include depository
institutions and certain other
institutions as specified in the Act.5
Section 19(b)(12) also provides that the
Board may prescribe regulations
concerning the payment of earnings on
balances at a Reserve Bank.6
By notice published in the Federal
Register on January 8, 2021, the Board
requested comment on proposed
amendments to Regulation D that would
(1) eliminate references to an ‘‘IORR’’
(interest on required reserves) rate and
to an ‘‘IOER’’ (interest on excess
reserves) rate and replace them with
references to a single ‘‘interest on
reserve balances’’ (‘‘IORB’’) rate; and (2)
simplify the formula used to calculate
the amount of interest paid on balances
maintained by or on behalf of eligible
institutions in master accounts at
Federal Reserve Banks and make other
conforming changes.7 The public
comment period closed on March 9,
2021.
II. Comments and Final Rule
The Board received one comment that
addressed issues not raised by the
proposed amendments. Accordingly, the
Board is adopting the proposed
amendments as a final rule without
change.
III. Administrative Law Matters
A. Effective Date
The Administrative Procedure Act
(APA) generally requires that a final rule
be published in the Federal Register no
less than 30 days before its effective
date.8 The Board has determined that
the final rule will become effective on
July 29, 2021. The selected effective
date aligns the final rule with the first
day following conclusion of the
preceding maintenance period in order
to facilitate operational implementation
of the final rule’s rate and rate
calculation provisions.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act 9
generally requires an agency, in
connection with a proposed rule, to
prepare and make available for public
comment an initial regulatory flexibility
4 12
U.S.C. 461 (b)(12)(A).
12 U.S.C. 461(b)(1)(A) & (b)(12)(C); see also
12 CFR 204.2(y).
6 See 12 U.S.C. 461(b)(12)(B).
7 Regulation D (Reserve Requirements of
Depository Institutions), Notice of Proposed
Rulemaking, 86 FR. 1303 (Jan. 8, 2021).
8 5 U.S.C. 553(d).
9 5 U.S.C. 601 et seq.
5 See
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analysis that describes the impact of a
proposed rule on small entities. The
Small Business Administration has
defined ‘‘small entities’’ to include
banking organizations with total assets
of less than or equal to $600 million.
The Board did not receive any
comments on its initial regulatory
flexibility analysis. As discussed in the
SUPPLEMENTARY INFORMATION above, the
final rule applies to all eligible
institutions regardless of size, does not
impose any new recordkeeping,
reporting, or compliance requirements,
and does not duplicate, overlap, or
conflict with any other Federal rules. In
light of the foregoing, the Board certifies
that the final rule will not have a
significant economic impact on a
substantial number of small entities.
C. Paperwork Reduction Act
The Paperwork Reduction Act of
1995 10 (PRA) prohibits an agency from
conducting or sponsoring an
information collection unless it displays
a currently valid Office of Management
and Budget (OMB) control number. The
final rule contains no collections of
information subject to the PRA.
D. Plain Language
Section 772 of the Gramm-LeachBliley Act 11 requires the Board to use
‘‘plain language’’ in all proposed and
final rules published after January 1,
2000. The Board did not receive any
comments with respect to making the
proposed rule easier to understand and
is adopting the final rule without
change.
List of Subjects in 12 CFR Part 204
Banks, Banking, Reporting and
recordkeeping requirements.
Authority and Issuance
For the reasons set forth in the
the Board
is amending 12 CFR part 204 as follows:
SUPPLEMENTARY INFORMATION,
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 § 204.2, paragraph (aa) is revised
to read as follows:
■
§ 204.2
*
*
10 44
Definitions.
*
*
*
U.S.C. 3506; see 5 CFR part 1320, appendix
A.1.
11 Public Law 106–102, section 722, 113 Stat.
1338, 1471 (1999).
PO 00000
Frm 00008
Fmt 4700
Sfmt 4700
(aa) Excess balance account means an
account at a Reserve Bank pursuant to
§ 204.10(d) of this chapter that is
established by one or more eligible
institutions through an agent and in
which only balances of the participating
eligible institutions may at any time be
maintained. An excess balance account
is not a ‘‘pass-through account’’ for
purposes of this part.
*
*
*
*
*
■ 3. In § 204.10, paragraphs (b)
introductory text, (b)(1) through (3), and
(d)(1) through (4) are revised to read as
follows:
§ 204.10
Payment of interest on balances.
*
*
*
*
*
(b) Payment of interest. Interest on
balances maintained at Federal Reserve
Banks by or on behalf of an eligible
institution is established as set forth in
paragraphs (b)(1) and (2) of this section.
(1) For balances maintained in an
eligible institution’s master account,
interest is the amount equal to the
interest on reserve balances rate (‘‘IORB
rate’’) on a day multiplied by the total
balances maintained on that day. The
IORB rate is 0.10 percent.
(2) For term deposits, interest is:
(i) The amount equal to the principal
amount of the term deposit multiplied
by a rate specified in advance by the
Board, in light of existing short-term
market rates, to maintain the federal
funds rate at a level consistent with
monetary policy objectives; or
(ii) The amount equal to the principal
amount of the term deposit multiplied
by a rate determined by the auction
through which such term deposits are
offered.
(3) For purposes of § 204.10(b), a
‘‘master account’’ is the record
maintained by a Federal Reserve Bank
of the debtor-creditor relationship
between the Federal Reserve Bank and
a single eligible institution with respect
to deposit balances of the eligible
institution that are maintained with the
Federal Reserve Bank. A ‘‘master
account’’ is not a ‘‘term deposit,’’ an
‘‘excess balance account,’’ a ‘‘joint
account,’’ or any deposit account
maintained with a Federal Reserve Bank
governed by an agreement that states the
account is not a master account.
*
*
*
*
*
(d) * * *
(1) A Reserve Bank may establish an
excess balance account for eligible
institutions under the provisions of this
paragraph (d). Notwithstanding any
other provisions of this part, the
balances maintained by eligible
institutions in an excess balance
account represent a liability of the
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Federal Register / Vol. 86, No. 106 / Friday, June 4, 2021 / Rules and Regulations
Reserve Bank solely to those
participating eligible institutions.
(2) The participating eligible
institutions in an excess balance
account shall authorize another
institution to act as agent of the
participating institutions for purposes of
general account management, including
but not limited to transferring the
balances of participating institutions in
and out of the excess balance account.
An excess balance account must be
established at the Reserve Bank where
the agent maintains its master account,
unless otherwise determined by the
Board. The agent may not commingle its
own funds in the excess balance
account.
(3) Balances maintained in an excess
balance account may not be used for
general payments or other activities.
(4) Interest on balances of eligible
institutions maintained in an excess
balance account is the amount equal to
the IORB rate in effect on a day
multiplied by the total balances
maintained on that day.
*
*
*
*
*
By order of the Board of Governors of the
Federal Reserve System.
Ann Misback,
Secretary of the Board.
[FR Doc. 2021–11758 Filed 6–3–21; 8:45 am]
BILLING CODE 6210–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2020–0975; Project
Identifier 2020–NM–061–AD; Amendment
39–21566; AD 2021–11–04]
RIN 2120–AA64
Airworthiness Directives; De Havilland
Aircraft of Canada Limited (Type
Certificate Previously Held by
Bombardier, Inc.) Airplanes
Federal Aviation
Administration (FAA), Department of
Transportation (DOT).
ACTION: Final rule.
AGENCY:
The FAA is adopting a new
airworthiness directive (AD) for certain
De Havilland Aircraft of Canada Limited
Model DHC–8–400, –401, and –402
airplanes. This AD was prompted by a
report of main landing gear (MLG)
retractions after striking an obstacle or
severe wheel imbalance after a tire
failure. This AD requires inspections for
correct height of the lock link overcenter stop pin and for correct gaps of
the left-hand and right-hand MLG
SUMMARY:
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16:01 Jun 03, 2021
Jkt 253001
downlock proximity sensors,
replacement of the shim if necessary,
corrective actions, and installation of a
new, improved proximity sensor
electronic unit (PSEU) with software
changes. The FAA is issuing this AD to
address the unsafe condition on these
products.
DATES: This AD is effective July 9, 2021.
The Director of the Federal Register
approved the incorporation by reference
of certain publications listed in this AD
as of July 9, 2021.
ADDRESSES: For service information
identified in this final rule, contact De
Havilland Aircraft of Canada Limited,
Q-Series Technical Help Desk, 123
Garratt Boulevard, Toronto, Ontario
M3K 1Y5, Canada; telephone 416–375–
4000; fax 416–375–4539; email thd@
dehavilland.com; internet https://
dehavilland.com. You may view this
service information at the FAA,
Airworthiness Products Section,
Operational Safety Branch, 2200 South
216th St., Des Moines, WA. For
information on the availability of this
material at the FAA, call 206–231–3195.
It is also available on the internet at
https://www.regulations.gov by
searching for and locating Docket No.
FAA–2020–0975.
Examining the AD Docket
You may examine the AD docket on
the internet at https://
www.regulations.gov by searching for
and locating Docket No. FAA–2020–
0975; or in person at Docket Operations
between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
The AD docket contains this final rule,
any comments received, and other
information. The address for Docket
Operations is U.S. Department of
Transportation, Docket Operations,
M–30, West Building Ground Floor,
Room W12–140, 1200 New Jersey
Avenue SE, Washington, DC 20590.
FOR FURTHER INFORMATION CONTACT:
Darren Gassetto, Aerospace Engineer,
Mechanical Systems and Administrative
Services Section, FAA, New York ACO
Branch, 1600 Stewart Avenue, Suite
410, Westbury, NY 11590; telephone
516–228–7323; fax 516–794–5531; email
9-avs-nyacocos@faa.gov.
SUPPLEMENTARY INFORMATION:
Background
Transport Canada Civil Aviation
(TCCA), which is the aviation authority
for Canada, has issued TCCA AD CF–
2016–31R1, dated March 24, 2017
(TCCA AD CF–2016–31R1) (also
referred to as the Mandatory Continuing
Airworthiness Information, or the
MCAI), to correct an unsafe condition
PO 00000
Frm 00009
Fmt 4700
Sfmt 4700
29939
for certain De Havilland Aircraft of
Canada Limited Model DHC–8–400,
–401, and –402 airplanes. You may
examine the MCAI in the AD docket on
the internet at https://
www.regulations.gov by searching for
and locating Docket No. FAA–2020–
0975.
The FAA issued a notice of proposed
rulemaking (NPRM) to amend 14 CFR
part 39 by adding an AD that would
apply to certain De Havilland Aircraft of
Canada Limited Model DHC–8–400,
–401, and –402 airplanes. The NPRM
published in the Federal Register on
November 2, 2020 (85 FR 69276). The
NPRM was prompted by a report of
MLG retractions after striking an
obstacle or severe wheel imbalance after
a tire failure. The NPRM proposed to
require inspections for correct height of
the lock link over-center stop pin and
for correct gaps of the left-hand and
right-hand MLG downlock proximity
sensors, replacement of the shim if
necessary, corrective actions, and
installation of a new improved PSEU
with software changes. The FAA is
issuing this AD to address loss of MLG
downlock signal caused by the
vibrations from those events, which
leads to de-energizing the MLG solenoid
sequence valve (SSV) and subsequent
removal of hydraulic pressure from the
MLG downlock actuator. Loss of the
hydraulic pressure in the downlock
actuator, combined with the vibrations,
can cause the stabilizer brace to unlock
and the MLG to subsequently retract.
See the MCAI for additional background
information.
Comments
The FAA gave the public the
opportunity to participate in developing
this final rule. The following presents
the comments received on the NPRM
and the FAA’s response to each
comment.
Request To Exclude Certain Steps of the
Accomplishment Instructions of Service
Information
Horizon Air requested that paragraphs
(g), (h), and (i) of the proposed AD be
revised to require only paragraph 3.B. of
the Accomplishment Instructions of the
service bulletins referenced in those
paragraphs. Horizon Air stated that the
Job Set-up section (paragraph 3.A.) of
the Accomplishment Instructions do not
directly address the unsafe condition.
Horizon Air also asserted that retaining
the Job Set-up sections restricts an
operator’s ability to do other
maintenance in conjunction with the
required service bulletins.
The FAA disagrees with the request to
exclude paragraph 3.A., Job Set-up, of
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]]>Agencies
[Federal Register Volume 86, Number 106 (Friday, June 4, 2021)]
[Rules and Regulations]
[Pages 29937-29939]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-11758]
=======================================================================
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Docket No. R-1737]
RIN 7100-AG07
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 adopting amendments to Regulation D (Reserve
Requirements of Depository Institutions) to eliminate references to an
``interest on required reserves'' rate and to an ``interest on excess
reserves'' rate and replace them with a reference to a single
``interest on reserve balances'' rate; and to simplify the formula used
to calculate the amount of interest paid on balances maintained by or
on behalf of eligible institutions in master accounts at Federal
Reserve Banks, and to make other conforming amendments. The Board
requested comment on the amendments and received one comment that
addressed issues not raised by the proposed amendments. Accordingly,
the Board is adopting the final rule as proposed without change.
DATES: Effective July 29, 2021.
FOR FURTHER INFORMATION CONTACT: Sophia H. Allison, Senior Special
Counsel, (202-452-3565), Legal Division, or Matthew Malloy (202-452-
2416), Division of Monetary Affairs, or Heather Wiggins (202-452-3674),
Division of Monetary Affairs; for users of Telecommunications Device
for the Deaf (TDD) only, contact 202-263-4869; Board of Governors of
the Federal Reserve System, 20th and C Streets NW, Washington, DC
20551.
SUPPLEMENTARY INFORMATION:
I. Statutory and Regulatory Background
Section 19(b)(2) of the Federal Reserve Act (``Act'') \1\ requires
each depository institution to maintain reserves against its
transaction accounts, nonpersonal time deposits, and Eurocurrency
liabilities within ratios prescribed by the Board for the purpose of
implementing monetary policy.\2\ The Board's Regulation D (Reserve
Requirements of Depository Institutions, 12 CFR part 204) implements
the reserve requirements provisions of section 19. Effective March 24,
2020, the Board amended Regulation D to set all reserve requirement
ratios for transaction accounts to zero percent.\3\
---------------------------------------------------------------------------
\1\ 12 U.S.C. 461(b)(2).
\2\ Reserve requirement ratios for nonpersonal time deposits and
Eurocurrency liabilities have been set at zero percent since 1990.
See Regulation D (Reserve Requirements of Depository Institutions),
Final Rule, 55 FR 50540 (Dec. 7, 1990).
\3\ Regulation D (Reserve Requirements of Depository
Institutions), Final Rule, 86 FR 8853 (February 10, 2021); see
Regulation D (Reserve Requirements of Depository Institutions),
Interim Final Rule, 85 FR 16525 (March 24, 2020).
---------------------------------------------------------------------------
Section 19(b)(12) of the Act provides that balances maintained by
or on behalf of ``eligible institutions'' in accounts at Federal
Reserve Banks may receive
[[Page 29938]]
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.\4\ Eligible institutions include depository institutions and
certain other institutions as specified in the Act.\5\ Section
19(b)(12) also provides that the Board may prescribe regulations
concerning the payment of earnings on balances at a Reserve Bank.\6\
---------------------------------------------------------------------------
\4\ 12 U.S.C. 461 (b)(12)(A).
\5\ See 12 U.S.C. 461(b)(1)(A) & (b)(12)(C); see also 12 CFR
204.2(y).
\6\ See 12 U.S.C. 461(b)(12)(B).
---------------------------------------------------------------------------
By notice published in the Federal Register on January 8, 2021, the
Board requested comment on proposed amendments to Regulation D that
would (1) eliminate references to an ``IORR'' (interest on required
reserves) rate and to an ``IOER'' (interest on excess reserves) rate
and replace them with references to a single ``interest on reserve
balances'' (``IORB'') rate; and (2) simplify the formula used to
calculate the amount of interest paid on balances maintained by or on
behalf of eligible institutions in master accounts at Federal Reserve
Banks and make other conforming changes.\7\ The public comment period
closed on March 9, 2021.
---------------------------------------------------------------------------
\7\ Regulation D (Reserve Requirements of Depository
Institutions), Notice of Proposed Rulemaking, 86 FR. 1303 (Jan. 8,
2021).
---------------------------------------------------------------------------
II. Comments and Final Rule
The Board received one comment that addressed issues not raised by
the proposed amendments. Accordingly, the Board is adopting the
proposed amendments as a final rule without change.
III. Administrative Law Matters
A. Effective Date
The Administrative Procedure Act (APA) generally requires that a
final rule be published in the Federal Register no less than 30 days
before its effective date.\8\ The Board has determined that the final
rule will become effective on July 29, 2021. The selected effective
date aligns the final rule with the first day following conclusion of
the preceding maintenance period in order to facilitate operational
implementation of the final rule's rate and rate calculation
provisions.
---------------------------------------------------------------------------
\8\ 5 U.S.C. 553(d).
---------------------------------------------------------------------------
B. Regulatory Flexibility Act
The Regulatory Flexibility Act \9\ generally requires an agency, in
connection with a proposed rule, to prepare and make available for
public comment an initial regulatory flexibility analysis that
describes the impact of a proposed rule on small entities. The Small
Business Administration has defined ``small entities'' to include
banking organizations with total assets of less than or equal to $600
million.
---------------------------------------------------------------------------
\9\ 5 U.S.C. 601 et seq.
---------------------------------------------------------------------------
The Board did not receive any comments on its initial regulatory
flexibility analysis. As discussed in the SUPPLEMENTARY INFORMATION
above, the final rule applies to all eligible institutions regardless
of size, does not impose any new recordkeeping, reporting, or
compliance requirements, and does not duplicate, overlap, or conflict
with any other Federal rules. In light of the foregoing, the Board
certifies that the final rule will not have a significant economic
impact on a substantial number of small entities.
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 \10\ (PRA) prohibits an agency
from conducting or sponsoring an information collection unless it
displays a currently valid Office of Management and Budget (OMB)
control number. The final rule contains no collections of information
subject to the PRA.
---------------------------------------------------------------------------
\10\ 44 U.S.C. 3506; see 5 CFR part 1320, appendix A.1.
---------------------------------------------------------------------------
D. Plain Language
Section 772 of the Gramm-Leach-Bliley Act \11\ requires the Board
to use ``plain language'' in all proposed and final rules published
after January 1, 2000. The Board did not receive any comments with
respect to making the proposed rule easier to understand and is
adopting the final rule without change.
---------------------------------------------------------------------------
\11\ Public Law 106-102, section 722, 113 Stat. 1338, 1471
(1999).
---------------------------------------------------------------------------
List of Subjects in 12 CFR Part 204
Banks, Banking, Reporting and recordkeeping requirements.
Authority and Issuance
For the reasons set forth in the SUPPLEMENTARY INFORMATION, 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), 371a, 461, 601, 611, and
3105.
0
2. In Sec. 204.2, paragraph (aa) is revised to read as follows:
Sec. 204.2 Definitions.
* * * * *
(aa) Excess balance account means an account at a Reserve Bank
pursuant to Sec. 204.10(d) of this chapter that is established by one
or more eligible institutions through an agent and in which only
balances of the participating eligible institutions may at any time be
maintained. An excess balance account is not a ``pass-through account''
for purposes of this part.
* * * * *
0
3. In Sec. 204.10, paragraphs (b) introductory text, (b)(1) through
(3), and (d)(1) through (4) are revised to read as follows:
Sec. 204.10 Payment of interest on balances.
* * * * *
(b) Payment of interest. Interest on balances maintained at Federal
Reserve Banks by or on behalf of an eligible institution is established
as set forth in paragraphs (b)(1) and (2) of this section.
(1) For balances maintained in an eligible institution's master
account, interest is the amount equal to the interest on reserve
balances rate (``IORB rate'') on a day multiplied by the total balances
maintained on that day. The IORB rate is 0.10 percent.
(2) For term deposits, interest is:
(i) The amount equal to the principal amount of the term deposit
multiplied by a rate specified in advance by the Board, in light of
existing short-term market rates, to maintain the federal funds rate at
a level consistent with monetary policy objectives; or
(ii) The amount equal to the principal amount of the term deposit
multiplied by a rate determined by the auction through which such term
deposits are offered.
(3) For purposes of Sec. 204.10(b), a ``master account'' is the
record maintained by a Federal Reserve Bank of the debtor-creditor
relationship between the Federal Reserve Bank and a single eligible
institution with respect to deposit balances of the eligible
institution that are maintained with the Federal Reserve Bank. A
``master account'' is not a ``term deposit,'' an ``excess balance
account,'' a ``joint account,'' or any deposit account maintained with
a Federal Reserve Bank governed by an agreement that states the account
is not a master account.
* * * * *
(d) * * *
(1) A Reserve Bank may establish an excess balance account for
eligible institutions under the provisions of this paragraph (d).
Notwithstanding any other provisions of this part, the balances
maintained by eligible institutions in an excess balance account
represent a liability of the
[[Page 29939]]
Reserve Bank solely to those participating eligible institutions.
(2) The participating eligible institutions in an excess balance
account shall authorize another institution to act as agent of the
participating institutions for purposes of general account management,
including but not limited to transferring the balances of participating
institutions in and out of the excess balance account. An excess
balance account must be established at the Reserve Bank where the agent
maintains its master account, unless otherwise determined by the Board.
The agent may not commingle its own funds in the excess balance
account.
(3) Balances maintained in an excess balance account may not be
used for general payments or other activities.
(4) Interest on balances of eligible institutions maintained in an
excess balance account is the amount equal to the IORB rate in effect
on a day multiplied by the total balances maintained on that day.
* * * * *
By order of the Board of Governors of the Federal Reserve
System.
Ann Misback,
Secretary of the Board.
[FR Doc. 2021-11758 Filed 6-3-21; 8:45 am]
BILLING CODE 6210-01-P
