Regulation D: Reserve Requirements of Depository Institutions, 29937-29939 [2021-11758]

Download as PDF Federal Register / Vol. 86, No. 106 / Friday, June 4, 2021 / Rules and Regulations under the Unfunded Mandates Reform Act do not apply. I. Review Under the Treasury and 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 VerDate Sep<11>2014 16:01 Jun 03, 2021 Jkt 253001 promulgated or is expected to lead to promulgation of a final rule, and that: (1) Is a significant regulatory action under Executive Order 12866, or any successor order; and (2) is likely to have a significant adverse effect on the supply, distribution, or use of energy, or (3) is designated by the Administrator of OIRA as a significant energy action. The rule withdraws internal agency procedures and does not meet any of the three criteria listed above. Accordingly, the requirements of Executive Order 13211 do not apply. Approval of the Office of the Secretary The Secretary of Energy has approved publication of this final rule. List of Subjects in 10 CFR Part 1061 Administrative practice and procedure. Signing Authority This document of the Department of Energy was signed on May 27, 2021, by John T. Lucas, Acting General Counsel, Office of the General Counsel, pursuant to delegated authority from the Secretary of Energy. That document with the original signature and date is maintained by DOE. For administrative purposes only, and in compliance with requirements of the Office of the Federal Register, the undersigned DOE Federal Register Liaison Officer has been authorized to sign and submit the document in electronic format for publication, as an official document of the Department of Energy. This administrative process in no way alters the legal effect of this document upon publication in the Federal Register. Signed in Washington, DC, on June 1, 2021. Treena V. Garrett, Federal Register Liaison Officer, U.S. 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 RIN 7100–AG07 Sfmt 4700 29937 E:\FR\FM\04JNR1.SGM 04JNR1 29938 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 VerDate Sep<11>2014 16:01 Jun 03, 2021 Jkt 253001 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 E:\FR\FM\04JNR1.SGM 04JNR1 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: VerDate Sep<11>2014 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 E:\FR\FM\04JNR1.SGM 04JNR1

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]


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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