Regulation D: Reserve Requirements of Depository Institutions, 18380-18382 [2023-06446]
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Federal Register / Vol. 88, No. 60 / Wednesday, March 29, 2023 / Rules and Regulations
ddrumheller on DSK120RN23PROD with RULES1
under these programs. In accordance
with the Federal Reserve Act, the
primary and secondary credit rates are
established by the boards of directors of
the Federal Reserve Banks, subject to
review and determination of the Board.
On March 22, 2023, the Board voted
to approve a 0.25 percentage point
increase in the primary credit rate,
thereby increasing the primary credit
rate from 4.75 percent to 5 percent. In
addition, the Board had previously
approved the renewal of the secondary
credit rate formula, the primary credit
rate plus 50 basis points. Under the
formula, the secondary credit rate
increased by 0.25 percentage points as
a result of the Board’s primary credit
rate action, thereby increasing the
secondary credit rate from 5.25 percent
to 5.50 percent. The amendments to
Regulation A reflect these rate changes.
The 0.25 percentage point increase in
the primary credit rate was associated
with a 0.25 percentage point increase in
the target range for the federal funds rate
(from a target range of 41⁄2 percent to 43⁄4
percent to a target range of 43⁄4 percent
to 5 percent) announced by the Federal
Open Market Committee on March 22,
2023, as described in the Board’s
amendment of its Regulation D
published elsewhere in today’s Federal
Register.
Administrative Procedure Act
In general, the Administrative
Procedure Act (‘‘APA’’) 1 imposes three
principal requirements when an agency
promulgates legislative rules (rules
made pursuant to Congressionallydelegated authority): (1) publication
with adequate notice of a proposed rule;
(2) followed by a meaningful
opportunity for the public to comment
on the rule’s content; and (3)
publication of the final rule not less
than 30 days before its effective date.
The APA provides that notice and
comment procedures do not apply if the
agency for good cause finds them to be
‘‘unnecessary, impracticable, or contrary
to the public interest.’’ 2 Section 553(d)
of the APA also provides that
publication at least 30 days prior to a
rule’s effective date is not required for
(1) a substantive rule which grants or
recognizes an exemption or relieves a
restriction; (2) interpretive rules and
statements of policy; or (3) a rule for
which the agency finds good cause for
shortened notice and publishes its
reasoning with the rule.3 The APA
further provides that the notice, public
comment, and delayed effective date
requirements of 5 U.S.C. 553 do not
apply ‘‘to the extent that there is
involved . . . a matter relating to agency
management or personnel or to public
property, loans, grants, benefits, or
contracts.’’ 4
Regulation A establishes the interest
rates that the twelve Reserve Banks
charge for extensions of primary credit
and secondary credit. The Board has
determined that the notice, public
comment, and delayed effective date
requirements of the APA do not apply
to these final amendments to Regulation
A. The amendments involve a matter
relating to loans and are therefore
exempt under the terms of the APA.
Furthermore, because delay would
undermine the Board’s action in
responding to economic data and
conditions, the Board has determined
that ‘‘good cause’’ exists within the
meaning of the APA to dispense with
the notice, public comment, and
delayed effective date procedures of the
APA with respect to the final
amendments to Regulation A.
Regulatory Flexibility Analysis
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2. In § 201.51, paragraphs (a) and (b)
are revised to read as follows:
■
§ 201.51 Interest rates applicable to credit
extended by a Federal Reserve Bank.3
(a) Primary credit. The interest rate at
each Federal Reserve Bank for primary
credit provided to depository
institutions under § 201.4(a) is 5
percent.
(b) Secondary credit. The interest rate
at each Federal Reserve Bank for
secondary credit provided to depository
institutions under § 201.4(b) is 5.50
percent.
*
*
*
*
*
3 The primary, secondary, and seasonal
credit rates described in this section apply to
both advances and discounts made under the
primary, secondary, and seasonal credit
programs, respectively.
Paperwork Reduction Act
AGENCY:
In accordance with the Paperwork
Reduction Act (‘‘PRA’’) of 1995,6 the
Board reviewed the final rule under the
authority delegated to the Board by the
Office of Management and Budget. The
final rule contains no requirements
subject to the PRA.
List of Subjects in 12 CFR Part 201
Banks, banking, Federal Reserve
System, Reporting and recordkeeping.
Authority and Issuance
For the reasons set forth in the
preamble, the Board is amending 12
CFR chapter II as follows:
55
Jkt 259001
Authority: 12 U.S.C. 248(i)–(j), 343 et seq.,
347a, 347b, 347c, 348 et seq., 357, 374, 374a,
and 461.
By order of the Board of Governors of the
Federal Reserve System.
Ann E. Misback,
Secretary of the Board.
U.S.C. 553(a)(2).
U.S.C. 603, 604.
6 44 U.S.C. 3506; see 5 CFR part 1320, appendix
A.1.
U.S.C. 551 et seq.
2 5 U.S.C. 553(b)(3)(A).
3 5 U.S.C. 553(d).
1. The authority citation for part 201
continues to read as follows:
■
The Regulatory Flexibility Act
(‘‘RFA’’) does not apply to a rulemaking
where a general notice of proposed
rulemaking is not required.5 As noted
previously, a general notice of proposed
rulemaking is not required if the final
rule involves a matter relating to loans.
Furthermore, the Board has determined
that it is unnecessary and contrary to
the public interest to publish a general
notice of proposed rulemaking for this
final rule. Accordingly, the RFA’s
requirements relating to an initial and
final regulatory flexibility analysis do
not apply.
45
15
PART 201—EXTENSIONS OF CREDIT
BY FEDERAL RESERVE BANKS
(REGULATION A)
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[FR Doc. 2023–06441 Filed 3–28–23; 8:45 am]
BILLING CODE 6210–02–P
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Docket No. R–1804; RIN 7100–AG57]
Regulation D: Reserve Requirements
of Depository Institutions
Board of Governors of the
Federal Reserve System.
ACTION: Final rule.
The Board of Governors of the
Federal Reserve System (‘‘Board’’) has
adopted final amendments to its
Regulation D to revise the rate of
interest paid on balances (‘‘IORB’’)
maintained at Federal Reserve Banks by
or on behalf of eligible institutions. The
final amendments specify that IORB is
4.9 percent, a 0.25 percentage point
increase from its prior level. The
amendment is intended to enhance the
role of IORB in maintaining the federal
funds rate in the target range established
by the Federal Open Market Committee
(‘‘FOMC’’ or ‘‘Committee’’).
DATES:
Effective date: This rule (amendments
to part 204 (Regulation D)) is effective
March 29, 2023.
SUMMARY:
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Federal Register / Vol. 88, No. 60 / Wednesday, March 29, 2023 / Rules and Regulations
Applicability date: The IORB rate
change was applicable on March 23,
2023.
FOR FURTHER INFORMATION CONTACT:
Sophia H. Allison, Senior Special
Counsel (202–452–3565), Legal
Division, or Nicole Trachman, Financial
Institution & Policy Analyst (202–973–
5055), Division of Monetary Affairs; for
users of telephone systems via text
telephone (TTY) or any TTY-based
Telecommunications Relay Services,
please call 711 from any telephone,
anywhere in the United States; Board of
Governors of the Federal Reserve
System, 20th and C Streets NW,
Washington, DC 20551.
SUPPLEMENTARY INFORMATION:
I. Statutory and Regulatory Background
For monetary policy purposes, section
19 of the Federal Reserve Act (‘‘Act’’)
imposes reserve requirements on certain
types of deposits and other liabilities of
depository institutions.1 Regulation D,
which implements section 19 of the Act,
requires that a depository institution
meet reserve requirements by holding
cash in its vault, or if vault cash is
insufficient, by maintaining a balance in
an account at a Federal Reserve Bank
(‘‘Reserve Bank’’).2 Section 19 also
provides that balances maintained by or
on behalf of certain institutions in an
account at a Reserve Bank may receive
earnings to be paid by the Reserve Bank
at least once each quarter, at a rate or
rates not to exceed the general level of
short-term interest rates.3 Institutions
that are eligible to receive earnings on
their balances held at Reserve Banks
(‘‘eligible institutions’’) include
depository institutions and certain other
institutions.4 Section 19 also provides
that the Board may prescribe regulations
concerning the payment of earnings on
balances at a Reserve Bank.5 Prior to
these amendments, Regulation D
established IORB at 4.65 percent.6
ddrumheller on DSK120RN23PROD with RULES1
II. Amendment to IORB
The Board is amending § 204.10(b)(1)
of Regulation D to establish IORB at 4.9
percent. The amendment represents a
0.25 percentage point increase in IORB.
This decision was announced on March
22, 2023, with an effective date of
March 23, 2023, in the Federal Reserve
Implementation Note that accompanied
1 12 U.S.C. 461(b). In March 2020, the Board set
all reserve requirement ratios to zero percent. See
Interim Final Rule, 85 FR 16525 (Mar. 24, 2020);
Final Rule, 86 FR 8853 (Feb. 10, 2021).
2 12 CFR 204.5(a)(1).
3 12 U.S.C. 461(b)(1)(A) and (b)(12)(A).
4 See 12 U.S.C. 461(b)(1)(A) & (b)(12)(C); see also
12 CFR 204.2(y).
5 See 12 U.S.C. 461(b)(12)(B).
6 See 12 CFR 204.10(b)(1).
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18381
the FOMC’s statement on March 22,
2023. The FOMC statement stated that
the Committee decided to raise the
target range for the federal funds rate to
43⁄4 to 5 percent.
The Federal Reserve Implementation
Note stated:
undermine the effectiveness of that
action. Accordingly, the Board has
determined that good cause exists to
dispense with the notice, public
comment, and delayed effective date
procedures of the APA with respect to
this final amendment to Regulation D.
The Board of Governors of the Federal
Reserve System voted unanimously to raise
the interest rate paid on reserve balances to
4.9 percent, effective March 23, 2023.
IV. Regulatory Flexibility Analysis
As a result, the Board is amending
§ 204.10(b)(1) of Regulation D to
establish IORB at 4.9 percent.
III. Administrative Procedure Act
In general, the Administrative
Procedure Act (‘‘APA’’) 7 imposes three
principal requirements when an agency
promulgates legislative rules (rules
made pursuant to Congressionallydelegated authority): (1) publication
with adequate notice of a proposed rule;
(2) followed by a meaningful
opportunity for the public to comment
on the rule’s content; and (3)
publication of the final rule not less
than 30 days before its effective date.
The APA provides that notice and
comment procedures do not apply if the
agency for good cause finds them to be
‘‘unnecessary, impracticable, or contrary
to the public interest.’’ 8 Section 553(d)
of the APA also provides that
publication at least 30 days prior to a
rule’s effective date is not required for
(1) a substantive rule which grants or
recognizes an exemption or relieves a
restriction; (2) interpretive rules and
statements of policy; or (3) a rule for
which the agency finds good cause for
shortened notice and publishes its
reasoning with the rule.9
The Board has determined that good
cause exists for finding that the notice,
public comment, and delayed effective
date provisions of the APA are
unnecessary, impracticable, or contrary
to the public interest with respect to
these final amendments to Regulation D.
The rate change for IORB that is
reflected in the final amendment to
Regulation D was made with a view
towards accommodating commerce and
business and with regard to their
bearing upon the general credit situation
of the country. Notice and public
comment would prevent the Board’s
action from being effective as promptly
as necessary in the public interest and
would not otherwise serve any useful
purpose. Notice, public comment, and a
delayed effective date would create
uncertainty about the finality and
effectiveness of the Board’s action and
U.S.C. 551 et seq.
U.S.C. 553(b)(3)(A).
9 5 U.S.C. 553(d).
The Regulatory Flexibility Act
(‘‘RFA’’) does not apply to a rulemaking
where a general notice of proposed
rulemaking is not required.10 As noted
previously, the Board has determined
that it is unnecessary and contrary to
the public interest to publish a general
notice of proposed rulemaking for this
final rule. Accordingly, the RFA’s
requirements relating to an initial and
final regulatory flexibility analysis do
not apply.
V. Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act (‘‘PRA’’) of 1995,11 the
Board reviewed the final rule under the
authority delegated to the Board by the
Office of Management and Budget. The
final rule contains no requirements
subject to the PRA.
List of Subjects in 12 CFR Part 204
Banks, Banking, Reporting and
recordkeeping requirements.
Authority and Issuance
For the reasons set forth in the
preamble, the Board amends
12 CFR part 204 as follows:
PART 204—RESERVE
REQUIREMENTS OF DEPOSITORY
INSTITUTIONS (REGULATION D)
1. The authority citation for part 204
continues to read as follows:
■
Authority: 12 U.S.C. 248(a), 248(c), 461,
601, 611, and 3105.
2. Section 204.10 is amended by
revising paragraph (b)(1) to read as
follows:
■
§ 204.10
*
*
*
*
(b) * * *
(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 4.9 percent.
*
*
*
*
*
75
10 5
85
11 44
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Fmt 4700
Payment of interest on balances.
*
U.S.C. 603, 604.
U.S.C. 3506; see 5 CFR part 1320, appendix
A.1.
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18382
Federal Register / Vol. 88, No. 60 / Wednesday, March 29, 2023 / Rules and Regulations
By order of the Board of Governors of the
Federal Reserve System.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2023–06446 Filed 3–28–23; 8:45 am]
BILLING CODE 6210–01–P
CONSUMER FINANCIAL PROTECTION
BUREAU
12 CFR Part 1081
[Docket No. CFPB–2022–0009]
RIN 3170–AB08
Rules of Practice for Adjudication
Proceedings
Consumer Financial Protection
Bureau.
ACTION: Final rule; consideration of
comments.
AGENCY:
The Rules of Practice for
Adjudication Proceedings (Rules of
Practice) govern adjudication
proceedings conducted by the
Consumer Financial Protection Bureau
(Bureau). The Bureau issued a
procedural rule to update the Rules of
Practice (Updated Rules of Practice).
The Updated Rules of Practice
expanded the opportunities for parties
in adjudication proceedings to conduct
depositions. They also made
amendments concerning timing and
deadlines, the content of answers, the
scheduling conference, bifurcation of
proceedings, the process for deciding
dispositive motions, and requirements
for issue exhaustion, as well as other
technical changes. The Bureau sought to
provide the parties with earlier access to
relevant information and also foster
greater procedural flexibility, which the
Bureau expected would ultimately
contribute to more effective and
efficient proceedings. The Bureau
invited the public to submit comments
on the Updated Rules of Practice. After
considering the comments, the Bureau
has decided to retain the amendments.
DATES: This action is effective on March
29, 2023.
FOR FURTHER INFORMATION CONTACT:
Kevin E. Friedl or Christopher Shelton,
Senior Counsel, Legal Division, at 202–
435–7700. If you require this document
in an alternative electronic format,
please contact CFPB_Accessibility@
cfpb.gov.
SUPPLEMENTARY INFORMATION:
ddrumheller on DSK120RN23PROD with RULES1
SUMMARY:
I. Background
The Consumer Financial Protection
Act of 2010 (CFPA) establishes the
Bureau as an independent bureau in the
Federal Reserve System and assigns the
Bureau a range of rulemaking,
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18:13 Mar 28, 2023
Jkt 259001
enforcement, supervision, and other
authorities.1 The Bureau’s enforcement
powers under the CFPA include section
1053, which authorizes the Bureau to
conduct adjudication proceedings.2 The
Bureau finalized the original version of
the Rules of Practice, which govern
adjudication proceedings, in 2012 (2012
Rule).3 The Bureau later finalized
certain amendments, which addressed
the issuance of temporary cease-anddesist orders, in 2014 (2014 Rule).4
II. Overview of the Updated Rules of
Practice and Comments Received
The Bureau issued the Updated Rules
of Practice in February 2022.5 The
Updated Rules of Practice were exempt
from the notice-and-comment
requirements of the Administrative
Procedure Act, because they were a rule
of agency organization, procedure, and
practice.6 Consequently, they were
effective upon publication (although no
adjudication proceedings have occurred
under the Updated Rules of Practice).
The Bureau invited the public to submit
comments.
The Bureau received four comments.
These came from a group of trade
associations, a consumer advocacy
organization, a bank holding company,
and a legal foundation.7 The group of
trade associations noted that
administrative adjudication can play an
important and valuable role in an
effective regulatory system by providing
an efficient, and equally fair, alternative
to civil litigation. However, the trade
associations opposed the changes
regarding the content of answers,
bifurcation of proceedings, rulings on
dispositive motions, and issue
exhaustion. By contrast, the consumer
advocacy organization supported the
rule, stating that it simultaneously
strengthens the ability of the agency to
protect consumers and the rights of
respondents subject to agency action.
The bank holding company expressed
support for the trade associations’
comment. Finally, the legal foundation
opposed the issue-exhaustion provision.
After carefully considering these
comments, the Bureau has decided to
retain the amendments made in the
Updated Rules of Practice. The Bureau
1 Title X of the Dodd-Frank Wall Street Reform
and Consumer Protection Act, Public Law 111–203,
124 Stat. 1376, 1955–2113 (2010).
2 12 U.S.C. 5563; see also section 1052(b), 12
U.S.C. 5562(b) (addressing subpoenas).
3 77 FR 39057 (June 29, 2012); see also 76 FR
45337 (July 28, 2011) (interim final rule).
4 79 FR 34622 (June 18, 2014); see also 78 FR
59163 (Sept. 26, 2013) (interim final rule).
5 87 FR 10028 (Feb. 22, 2022).
6 5 U.S.C. 553(b).
7 The Bureau also received other communications
on the docket that did not relate to the topic of
adjudication proceedings.
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Frm 00004
Fmt 4700
Sfmt 4700
addresses the comments in more detail
below.
III. Legal Authority
Section 1053(e) of the CFPA provides
that the Bureau ‘‘shall prescribe rules
establishing such procedures as may be
necessary to carry out’’ section 1053.8
Additionally, section 1022(b)(1)
provides, in relevant part, that the
Bureau’s Director ‘‘may prescribe rules
. . . as may be necessary or appropriate
to enable the Bureau to administer and
carry out the purposes and objectives of
the Federal consumer financial laws,
and to prevent evasions thereof.’’ 9 The
Bureau issues this rule based on its
authority under section 1053(e) and
section 1022(b)(1).
IV. Section-by-Section Analysis
1081.114(a) Construction of Time
Limits.
12 CFR 1081.114(a) (Rule 114(a))
governs the computation of any time
limit that is prescribed by Rules of
Practice, by order of the Director or the
hearing officer, or by any applicable
statute. The Updated Rules of Practice
amended Rule 114(a) for the purpose of
simplifying and clarifying it, based on
similar amendments made to Federal
Rule of Civil Procedure 6(a) in 2009.
As amended by the Updated Rules of
Practice, Rule 114(a) provides for time
periods to be computed in the following
manner. First, exclude the day of the
event that triggers the period. Second,
count every day, including intermediate
Saturdays, Sundays, and Federal
holidays. Third, include the last day of
the period unless it is a Saturday,
Sunday, or Federal holiday as set forth
in 5 U.S.C. 6103(a). When the last day
is a Saturday, Sunday, or Federal
holiday, the period runs until the end of
the next day that is not a Saturday,
Sunday, or Federal holiday.
8 12 U.S.C. 5563(e). As courts have recognized,
the term ‘‘necessary’’ is ‘‘a ‘chameleon-like’ word’’
whose meaning can vary based on context; in the
context of section 1053(e), the Bureau interprets
‘‘‘necessary’ to mean ‘useful,’ ‘convenient’ or
‘appropriate’ rather than ‘required’ or
‘indispensable.’ ’’ Prometheus Radio Project v. FCC,
373 F.3d 372, 391–94 (3d Cir. 2004). Section 1053
sets out the fundamental features of Bureau
adjudications, but it leaves many details open that
can only be addressed through more specific
Bureau procedures. In turn, those Bureau
procedures could not be effective, or fair to the
parties, if they were limited to only the most
rudimentary steps that would be indispensable to
holding a skeletal proceeding. Instead, the Bureau
believes that Congress gave the Bureau room to
adopt procedures that are useful in carrying out
section 1053.
9 12 U.S.C. 5512(b)(1).
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]]>Agencies
[Federal Register Volume 88, Number 60 (Wednesday, March 29, 2023)]
[Rules and Regulations]
[Pages 18380-18382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-06446]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Docket No. R-1804; RIN 7100-AG57]
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'') has adopted final amendments to its Regulation D to revise
the rate of interest paid on balances (``IORB'') maintained at Federal
Reserve Banks by or on behalf of eligible institutions. The final
amendments specify that IORB is 4.9 percent, a 0.25 percentage point
increase from its prior level. The amendment is intended to enhance the
role of IORB in maintaining the federal funds rate in the target range
established by the Federal Open Market Committee (``FOMC'' or
``Committee'').
DATES:
Effective date: This rule (amendments to part 204 (Regulation D))
is effective March 29, 2023.
[[Page 18381]]
Applicability date: The IORB rate change was applicable on March
23, 2023.
FOR FURTHER INFORMATION CONTACT: Sophia H. Allison, Senior Special
Counsel (202-452-3565), Legal Division, or Nicole Trachman, Financial
Institution & Policy Analyst (202-973-5055), Division of Monetary
Affairs; for users of telephone systems via text telephone (TTY) or any
TTY-based Telecommunications Relay Services, please call 711 from any
telephone, anywhere in the United States; Board of Governors of the
Federal Reserve System, 20th and C Streets NW, Washington, DC 20551.
SUPPLEMENTARY INFORMATION:
I. Statutory and Regulatory Background
For monetary policy purposes, section 19 of the Federal Reserve Act
(``Act'') imposes reserve requirements on certain types of deposits and
other liabilities of depository institutions.\1\ Regulation D, which
implements section 19 of the Act, requires that a depository
institution meet reserve requirements by holding cash in its vault, or
if vault cash is insufficient, by maintaining a balance in an account
at a Federal Reserve Bank (``Reserve Bank'').\2\ Section 19 also
provides that balances maintained by or on behalf of certain
institutions in an account at a Reserve Bank may receive earnings to be
paid by the Reserve Bank at least once each quarter, at a rate or rates
not to exceed the general level of short-term interest rates.\3\
Institutions that are eligible to receive earnings on their balances
held at Reserve Banks (``eligible institutions'') include depository
institutions and certain other institutions.\4\ Section 19 also
provides that the Board may prescribe regulations concerning the
payment of earnings on balances at a Reserve Bank.\5\ Prior to these
amendments, Regulation D established IORB at 4.65 percent.\6\
---------------------------------------------------------------------------
\1\ 12 U.S.C. 461(b). In March 2020, the Board set all reserve
requirement ratios to zero percent. See Interim Final Rule, 85 FR
16525 (Mar. 24, 2020); Final Rule, 86 FR 8853 (Feb. 10, 2021).
\2\ 12 CFR 204.5(a)(1).
\3\ 12 U.S.C. 461(b)(1)(A) and (b)(12)(A).
\4\ See 12 U.S.C. 461(b)(1)(A) & (b)(12)(C); see also 12 CFR
204.2(y).
\5\ See 12 U.S.C. 461(b)(12)(B).
\6\ See 12 CFR 204.10(b)(1).
---------------------------------------------------------------------------
II. Amendment to IORB
The Board is amending Sec. 204.10(b)(1) of Regulation D to
establish IORB at 4.9 percent. The amendment represents a 0.25
percentage point increase in IORB. This decision was announced on March
22, 2023, with an effective date of March 23, 2023, in the Federal
Reserve Implementation Note that accompanied the FOMC's statement on
March 22, 2023. The FOMC statement stated that the Committee decided to
raise the target range for the federal funds rate to 4\3/4\ to 5
percent.
The Federal Reserve Implementation Note stated:
The Board of Governors of the Federal Reserve System voted
unanimously to raise the interest rate paid on reserve balances to
4.9 percent, effective March 23, 2023.
As a result, the Board is amending Sec. 204.10(b)(1) of Regulation
D to establish IORB at 4.9 percent.
III. Administrative Procedure Act
In general, the Administrative Procedure Act (``APA'') \7\ imposes
three principal requirements when an agency promulgates legislative
rules (rules made pursuant to Congressionally-delegated authority): (1)
publication with adequate notice of a proposed rule; (2) followed by a
meaningful opportunity for the public to comment on the rule's content;
and (3) publication of the final rule not less than 30 days before its
effective date. The APA provides that notice and comment procedures do
not apply if the agency for good cause finds them to be ``unnecessary,
impracticable, or contrary to the public interest.'' \8\ Section 553(d)
of the APA also provides that publication at least 30 days prior to a
rule's effective date is not required for (1) a substantive rule which
grants or recognizes an exemption or relieves a restriction; (2)
interpretive rules and statements of policy; or (3) a rule for which
the agency finds good cause for shortened notice and publishes its
reasoning with the rule.\9\
---------------------------------------------------------------------------
\7\ 5 U.S.C. 551 et seq.
\8\ 5 U.S.C. 553(b)(3)(A).
\9\ 5 U.S.C. 553(d).
---------------------------------------------------------------------------
The Board has determined that good cause exists for finding that
the notice, public comment, and delayed effective date provisions of
the APA are unnecessary, impracticable, or contrary to the public
interest with respect to these final amendments to Regulation D. The
rate change for IORB that is reflected in the final amendment to
Regulation D was made with a view towards accommodating commerce and
business and with regard to their bearing upon the general credit
situation of the country. Notice and public comment would prevent the
Board's action from being effective as promptly as necessary in the
public interest and would not otherwise serve any useful purpose.
Notice, public comment, and a delayed effective date would create
uncertainty about the finality and effectiveness of the Board's action
and undermine the effectiveness of that action. Accordingly, the Board
has determined that good cause exists to dispense with the notice,
public comment, and delayed effective date procedures of the APA with
respect to this final amendment to Regulation D.
IV. Regulatory Flexibility Analysis
The Regulatory Flexibility Act (``RFA'') does not apply to a
rulemaking where a general notice of proposed rulemaking is not
required.\10\ As noted previously, the Board has determined that it is
unnecessary and contrary to the public interest to publish a general
notice of proposed rulemaking for this final rule. Accordingly, the
RFA's requirements relating to an initial and final regulatory
flexibility analysis do not apply.
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\10\ 5 U.S.C. 603, 604.
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V. Paperwork Reduction Act
In accordance with the Paperwork Reduction Act (``PRA'') of
1995,\11\ the Board reviewed the final rule under the authority
delegated to the Board by the Office of Management and Budget. The
final rule contains no requirements subject to the PRA.
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\11\ 44 U.S.C. 3506; see 5 CFR part 1320, appendix A.1.
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List of Subjects in 12 CFR Part 204
Banks, Banking, Reporting and recordkeeping requirements.
Authority and Issuance
For the reasons set forth in the preamble, the Board amends
12 CFR part 204 as follows:
PART 204--RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS
(REGULATION D)
0
1. The authority citation for part 204 continues to read as follows:
Authority: 12 U.S.C. 248(a), 248(c), 461, 601, 611, and 3105.
0
2. Section 204.10 is amended by revising paragraph (b)(1) to read as
follows:
Sec. 204.10 Payment of interest on balances.
* * * * *
(b) * * *
(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 4.9 percent.
* * * * *
[[Page 18382]]
By order of the Board of Governors of the Federal Reserve
System.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2023-06446 Filed 3-28-23; 8:45 am]
BILLING CODE 6210-01-P
