Federal Reserve Bank Capital Stock, 83317-83318 [2023-26213]

Download as PDF Federal Register / Vol. 88, No. 228 / Wednesday, November 29, 2023 / Rules and Regulations determines, that notice in accordance with 5 U.S.C. 553(b) is unnecessary. reviewed this final rule. No collections of information pursuant to the Paperwork Reduction Act are contained in the final rule. Regulatory Flexibility Act The Regulatory Flexibility Act (RFA) does not apply to a rulemaking where a general notice of proposed rulemaking is not required.4 As noted previously, the Board has determined that it is unnecessary to publish a general notice of proposed rulemaking for this final rule. Accordingly, the RFA’s requirements relating to an initial and final regulatory flexibility analysis do not apply. Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995,5 the Board List of Subjects in 12 CFR Part 204 Banks, Banking, Reporting and recordkeeping requirements. 83317 Authority: 12 U.S.C. 248(a), 248(c), 461, 601, 611, and 3105. 2. Section 204.4 is amended by revising paragraph (f) to read as follows: ■ § 204.4 Computation of required reserves. * * * * * (f) For all depository institutions, Edge and Agreement corporations, and United States branches and agencies of foreign banks, required reserves are computed by applying the reserve requirement ratios in table 1 to this paragraph (f) to net transaction accounts, nonpersonal time deposits, and Eurocurrency liabilities of the institution during the computation period. Authority and Issuance For the reasons set forth in the preamble, the Board is amending 12 CFR part 204 as follows: PART 204—RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS (REGULATION D) 1. The authority citation for part 204 continues to read as follows: ■ TABLE 1 TO PARAGRAPH (f) Reservable liability Reserve requirement Net Transaction Accounts: $0 to reserve requirement exemption amount ($36.1 million). Over reserve requirement exemption amount ($36.1 million) and up to low reserve tranche ($644.0 million). Over low reserve tranche ($644.0 million) .......................................................................... Nonpersonal time deposits .................................................................................................. Eurocurrency liabilities ........................................................................................................ By order of the Board of Governors of the Federal Reserve System, acting through the Director of the Division of Monetary Affairs under delegated authority. Ann E. Misback, Secretary of the Board. [FR Doc. 2023–26212 Filed 11–28–23; 8:45 am] BILLING CODE 6210–01–P FEDERAL RESERVE SYSTEM 12 CFR Part 209 [Regulation I; Docket No. R–1824] RIN 7100–AG72 Federal Reserve Bank Capital Stock Board of Governors of the Federal Reserve System. ACTION: Final rule. AGENCY: The Board of Governors (Board) is publishing a final rule that applies an inflation adjustment to the threshold for total consolidated assets in Regulation I. Federal Reserve Bank (Reserve Bank) stockholders that have total consolidated assets above the threshold receive a different dividend rate on their Reserve Bank stock than stockholders with total consolidated assets at or below the threshold. The ddrumheller on DSK120RN23PROD with RULES1 SUMMARY: 45 U.S.C. 603 and 604. U.S.C. 3506; 5 CFR part 1320. VerDate Sep<11>2014 16:24 Nov 28, 2023 I. Background Regulation I governs the issuance and cancellation of capital stock by the Reserve Banks. Under section 5 of the 2 12 Jkt 262001 $0 plus 0 percent of amount over $644.0 million. 0 percent. 0 percent. Federal Reserve Act requires that the Board annually adjust the total consolidated asset threshold to reflect the change in the Gross Domestic Product Price Index, published by the Bureau of Economic Analysis (BEA). Based on the change in the Gross Domestic Product Price Index as of September 28, 2023, the total consolidated asset threshold will be $12,517,000,000 through December 31, 2024. DATES: Effective date: December 29, 2023. Applicability date: The adjusted threshold for total consolidated assets will apply beginning on January 1, 2024. FOR FURTHER INFORMATION CONTACT: Benjamin Snodgrass, Senior Counsel (202/263–4877), Legal Division; or Kelsey Cassidy, Financial Institutions Policy Analyst (202/465–6817), Reserve Bank Operations and Payments Systems Division. For users of TTY–TRS, please contact 711 from any telephone, anywhere in the United States or (202) 263–4869. SUPPLEMENTARY INFORMATION: 1 12 5 44 0 percent of amount. PO 00000 U.S.C. 287. CFR 209.4(a). Frm 00013 Fmt 4700 Federal Reserve Act 1 and Regulation I,2 a member bank must subscribe to capital stock of the Reserve Bank of its district in an amount equal to six percent of the member bank’s capital and surplus. The member bank must pay for one-half of this subscription when the Reserve Bank issues the capital stock, while the remaining half of the subscription shall be subject to call by the Board.3 Section 7(a)(1) of the Federal Reserve Act 4 provides that Reserve Bank stockholders with $10 billion or less in total consolidated assets shall receive a six percent dividend on paid-in capital stock, while stockholders with more than $10 billion in total consolidated assets shall receive a dividend on paidin capital stock equal to the lesser of six percent and ‘‘the rate equal to the high yield of the 10-year Treasury note auctioned at the last auction held prior to the payment of such dividend.’’ Section 7(a)(1) requires that the Board adjust the threshold for total consolidated assets annually to reflect the change in the Gross Domestic Product Price Index, published by the BEA. Regulation I implements section 7(a)(1) of the Federal Reserve Act by (1) defining the term ‘‘total consolidated 3 12 4 12 Sfmt 4700 U.S.C. 287 and 12 CFR 209.4(c)(2). U.S.C. 289(a)(1). E:\FR\FM\29NOR1.SGM 29NOR1 83318 Federal Register / Vol. 88, No. 228 / Wednesday, November 29, 2023 / Rules and Regulations assets,’’ 5 (2) incorporating the statutory dividend rates for Reserve Bank stockholders 6 and (3) providing that the Board shall adjust the threshold for total consolidated assets annually to reflect the change in the Gross Domestic Product Price Index.7 The Board has explained that it ‘‘expects to make this adjustment [to the threshold for total consolidated assets] using the final second quarter estimate of the Gross Domestic Product Price Index for each year, published by the Bureau of Economic Analysis.’’ 8 II. Adjustment The Board annually adjusts the $10 billion total consolidated asset threshold based on the change in the Gross Domestic Product Price Index between the second quarter of 2015 (the baseline year) and the second quarter of the current year.9 The second quarter 2023 Gross Domestic Product Price Index estimate published by the BEA in September 2023 (121.789) is 25.17 percent higher than the second quarter 2015 Gross Domestic Product Price Index estimate published by the BEA in September 2023 (97.302). Based on this change in the Gross Domestic Product Price Index, the threshold for total consolidated assets in Regulation I will be $12,517,000,000 as of January 1, 2024. III. Administrative Law Matters Administrative Procedure Act CFR 209.1(d)(3). CFR 209.4(e), (c)(1)(ii), and (d)(1)(ii); 209.2(a); and 209.3(d)(5). 7 12 CFR 209.4(f). 8 81 FR 84415, 84417 (Nov. 23, 2016). 9 The BEA makes ongoing revisions to its estimates of the Gross Domestic Product Price Index for historical calendar quarters. The Board calculates annual adjustments from the baseline year (rather than from the prior-year total consolidated asset threshold) to ensure that the adjusted total consolidated asset threshold accurately reflects the cumulative change in the BEA’s most recent estimates of the Gross Domestic Product Price Index. 10 See 12 CFR 209.4(f) and n. 8 and accompanying text, supra. ddrumheller on DSK120RN23PROD with RULES1 6 12 VerDate Sep<11>2014 16:24 Nov 28, 2023 Jkt 262001 FEDERAL RESERVE SYSTEM The Regulatory Flexibility Act (RFA) does not apply to a rulemaking where a general notice of proposed rulemaking is not required.11 As noted previously, the Board has determined that it is unnecessary to publish a general notice of proposed rulemaking for this final rule. Accordingly, the RFA’s requirements relating to an initial and final regulatory flexibility analysis do not apply. 12 CFR Part 213 Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995,12 the Board has reviewed this final rule. No collections of information pursuant to the Paperwork Reduction Act are contained in the final rule. List of Subjects in 12 CFR Part 209 Banks and banking, Federal Reserve System, Reporting and recordkeeping requirements, Securities. Authority and Issuance For the reasons set forth in the preamble, the Board amends Regulation I, 12 CFR part 209, as follows: PART 209—ISSUE AND CANCELLATION OF FEDERAL RESERVE BANK CAPITAL STOCK (REGULATION I) 1. The authority citation for part 209 continues to read as follows: ■ The provisions of 5 U.S.C. 553(b) relating to notice of proposed rulemaking have not been followed in connection with the adoption of these amendments. The amendments involve expected, ministerial adjustments that are required by statute and Regulation I and are consistent with a method previously set forth by the Board.10 Accordingly, the Board finds good cause for determining, and so determines, that notice in accordance with 5 U.S.C. 553(b) is unnecessary. 5 12 Regulatory Flexibility Act Authority: 12 U.S.C. 12 U.S.C. 222, 248, 282, 286–288, 289, 321, 323, 327–328, and 466. 2. In part 209, remove all references to ‘‘$12,124,000,000’’ and add in their place wherever they appear ‘‘$12,517,000,000’’. ■ By order of the Board of Governors of the Federal Reserve System, acting through the Secretary of the Board under delegated authority. Ann E. Misback, Secretary of the Board. [FR Doc. 2023–26213 Filed 11–28–23; 8:45 am] BILLING CODE 6210–01–P 11 5 U.S.C. 603 and 604. U.S.C. 3506; 5 CFR part 1320. 12 44 PO 00000 Frm 00014 Fmt 4700 Sfmt 4700 [Docket No. R–1821] RIN 7100–AG70 CONSUMER FINANCIAL PROTECTION BUREAU 12 CFR Part 1013 Consumer Leasing (Regulation M) Board of Governors of the Federal Reserve System (Board) and Consumer Financial Protection Bureau (Bureau). ACTION: Final rules, official interpretations, and commentary. AGENCY: The Board and the Bureau (collectively, the Agencies) are finalizing amendments to the official interpretations and commentary for the Agencies’ regulations that implement the Consumer Leasing Act (CLA). The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) amended the CLA by requiring that the dollar threshold for exempt consumer leases be adjusted annually by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI–W). Under regulations adopted by the Agencies, if there is no annual percentage increase in the CPI–W, the Agencies will not adjust this exemption threshold from the prior year. Additionally, in years following a year in which the exemption threshold was not adjusted because the CPI–W decreased, the threshold is calculated by applying the annual percentage change in the CPI–W to the dollar amount that would have resulted, after rounding, if the decreases and any subsequent increases in the CPI–W had been taken into account. Based on the annual percentage increase in the CPI–W as of June 1, 2023, the exemption threshold will increase from $66,400 to $69,500 effective January 1, 2024. Because the Dodd-Frank Act also requires similar adjustments in the Truth in Lending Act’s threshold for exempt consumer credit transactions, the Agencies are making similar amendments to each of their respective regulations implementing the Truth in Lending Act elsewhere in the Rules section of this issue of the Federal Register. DATES: This final rule is effective January 1, 2024. FOR FURTHER INFORMATION CONTACT: Board: Vivian W. Wong, Senior Counsel, Division of Consumer and Community Affairs, Board of Governors SUMMARY: E:\FR\FM\29NOR1.SGM 29NOR1

Agencies

[Federal Register Volume 88, Number 228 (Wednesday, November 29, 2023)]
[Rules and Regulations]
[Pages 83317-83318]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26213]


-----------------------------------------------------------------------

FEDERAL RESERVE SYSTEM

12 CFR Part 209

[Regulation I; Docket No. R-1824]
RIN 7100-AG72


Federal Reserve Bank Capital Stock

AGENCY:  Board of Governors of the Federal Reserve System.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Board of Governors (Board) is publishing a final rule that 
applies an inflation adjustment to the threshold for total consolidated 
assets in Regulation I. Federal Reserve Bank (Reserve Bank) 
stockholders that have total consolidated assets above the threshold 
receive a different dividend rate on their Reserve Bank stock than 
stockholders with total consolidated assets at or below the threshold. 
The Federal Reserve Act requires that the Board annually adjust the 
total consolidated asset threshold to reflect the change in the Gross 
Domestic Product Price Index, published by the Bureau of Economic 
Analysis (BEA). Based on the change in the Gross Domestic Product Price 
Index as of September 28, 2023, the total consolidated asset threshold 
will be $12,517,000,000 through December 31, 2024.

DATES: 
    Effective date: December 29, 2023.
    Applicability date: The adjusted threshold for total consolidated 
assets will apply beginning on January 1, 2024.

FOR FURTHER INFORMATION CONTACT: Benjamin Snodgrass, Senior Counsel 
(202/263-4877), Legal Division; or Kelsey Cassidy, Financial 
Institutions Policy Analyst (202/465-6817), Reserve Bank Operations and 
Payments Systems Division. For users of TTY-TRS, please contact 711 
from any telephone, anywhere in the United States or (202) 263-4869.

SUPPLEMENTARY INFORMATION: 

I. Background

    Regulation I governs the issuance and cancellation of capital stock 
by the Reserve Banks. Under section 5 of the Federal Reserve Act \1\ 
and Regulation I,\2\ a member bank must subscribe to capital stock of 
the Reserve Bank of its district in an amount equal to six percent of 
the member bank's capital and surplus. The member bank must pay for 
one-half of this subscription when the Reserve Bank issues the capital 
stock, while the remaining half of the subscription shall be subject to 
call by the Board.\3\
---------------------------------------------------------------------------

    \1\ 12 U.S.C. 287.
    \2\ 12 CFR 209.4(a).
    \3\ 12 U.S.C. 287 and 12 CFR 209.4(c)(2).
---------------------------------------------------------------------------

    Section 7(a)(1) of the Federal Reserve Act \4\ provides that 
Reserve Bank stockholders with $10 billion or less in total 
consolidated assets shall receive a six percent dividend on paid-in 
capital stock, while stockholders with more than $10 billion in total 
consolidated assets shall receive a dividend on paid-in capital stock 
equal to the lesser of six percent and ``the rate equal to the high 
yield of the 10-year Treasury note auctioned at the last auction held 
prior to the payment of such dividend.'' Section 7(a)(1) requires that 
the Board adjust the threshold for total consolidated assets annually 
to reflect the change in the Gross Domestic Product Price Index, 
published by the BEA.
---------------------------------------------------------------------------

    \4\ 12 U.S.C. 289(a)(1).
---------------------------------------------------------------------------

    Regulation I implements section 7(a)(1) of the Federal Reserve Act 
by (1) defining the term ``total consolidated

[[Page 83318]]

assets,'' \5\ (2) incorporating the statutory dividend rates for 
Reserve Bank stockholders \6\ and (3) providing that the Board shall 
adjust the threshold for total consolidated assets annually to reflect 
the change in the Gross Domestic Product Price Index.\7\ The Board has 
explained that it ``expects to make this adjustment [to the threshold 
for total consolidated assets] using the final second quarter estimate 
of the Gross Domestic Product Price Index for each year, published by 
the Bureau of Economic Analysis.'' \8\
---------------------------------------------------------------------------

    \5\ 12 CFR 209.1(d)(3).
    \6\ 12 CFR 209.4(e), (c)(1)(ii), and (d)(1)(ii); 209.2(a); and 
209.3(d)(5).
    \7\ 12 CFR 209.4(f).
    \8\ 81 FR 84415, 84417 (Nov. 23, 2016).
---------------------------------------------------------------------------

II. Adjustment

    The Board annually adjusts the $10 billion total consolidated asset 
threshold based on the change in the Gross Domestic Product Price Index 
between the second quarter of 2015 (the baseline year) and the second 
quarter of the current year.\9\ The second quarter 2023 Gross Domestic 
Product Price Index estimate published by the BEA in September 2023 
(121.789) is 25.17 percent higher than the second quarter 2015 Gross 
Domestic Product Price Index estimate published by the BEA in September 
2023 (97.302). Based on this change in the Gross Domestic Product Price 
Index, the threshold for total consolidated assets in Regulation I will 
be $12,517,000,000 as of January 1, 2024.
---------------------------------------------------------------------------

    \9\ The BEA makes ongoing revisions to its estimates of the 
Gross Domestic Product Price Index for historical calendar quarters. 
The Board calculates annual adjustments from the baseline year 
(rather than from the prior-year total consolidated asset threshold) 
to ensure that the adjusted total consolidated asset threshold 
accurately reflects the cumulative change in the BEA's most recent 
estimates of the Gross Domestic Product Price Index.
---------------------------------------------------------------------------

III. Administrative Law Matters

Administrative Procedure Act

    The provisions of 5 U.S.C. 553(b) relating to notice of proposed 
rulemaking have not been followed in connection with the adoption of 
these amendments. The amendments involve expected, ministerial 
adjustments that are required by statute and Regulation I and are 
consistent with a method previously set forth by the Board.\10\ 
Accordingly, the Board finds good cause for determining, and so 
determines, that notice in accordance with 5 U.S.C. 553(b) is 
unnecessary.
---------------------------------------------------------------------------

    \10\ See 12 CFR 209.4(f) and n. 8 and accompanying text, supra.
---------------------------------------------------------------------------

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) does not apply to a rulemaking 
where a general notice of proposed rulemaking is not required.\11\ As 
noted previously, the Board has determined that it is unnecessary to 
publish a general notice of proposed rulemaking for this final rule. 
Accordingly, the RFA's requirements relating to an initial and final 
regulatory flexibility analysis do not apply.
---------------------------------------------------------------------------

    \11\ 5 U.S.C. 603 and 604.
---------------------------------------------------------------------------

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995,\12\ the 
Board has reviewed this final rule. No collections of information 
pursuant to the Paperwork Reduction Act are contained in the final 
rule.
---------------------------------------------------------------------------

    \12\ 44 U.S.C. 3506; 5 CFR part 1320.
---------------------------------------------------------------------------

List of Subjects in 12 CFR Part 209

    Banks and banking, Federal Reserve System, Reporting and 
recordkeeping requirements, Securities.

Authority and Issuance

    For the reasons set forth in the preamble, the Board amends 
Regulation I, 12 CFR part 209, as follows:

PART 209--ISSUE AND CANCELLATION OF FEDERAL RESERVE BANK CAPITAL 
STOCK (REGULATION I)

0
1. The authority citation for part 209 continues to read as follows:

    Authority:  12 U.S.C. 12 U.S.C. 222, 248, 282, 286-288, 289, 
321, 323, 327-328, and 466.


0
2. In part 209, remove all references to ``$12,124,000,000'' and add in 
their place wherever they appear ``$12,517,000,000''.

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2023-26213 Filed 11-28-23; 8:45 am]
BILLING CODE 6210-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.