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66249

Rules and Regulations

Federal Register
Vol. 78, No. 214
Tuesday, November 5, 2013

This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.

FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Regulation D; Docket No. R–1467]
RIN No. 7100 AE 04

Reserve Requirements of Depository
Institutions
Board of Governors of the
Federal Reserve System.
ACTION: Final rule.
AGENCY:

The Board is amending
Regulation D, Reserve Requirements of
Depository Institutions, to reflect the
annual indexing of the reserve
requirement exemption amount and the
low reserve tranche for 2014. The
Regulation D amendments set the
amount of total reservable liabilities of
each depository institution that is
subject to a zero percent reserve
requirement in 2014 at $13.3 million
(from $12.4 million in 2013). This
amount is known as the reserve
requirement exemption amount. The
Regulation D amendments also set the
amount of net transaction accounts at
each depository institution (over the
reserve requirement exemption amount)
that is subject to a three percent reserve
requirement in 2014 at $89.0 million
(from $79.5 million in 2013). This
amount is known as the low reserve
tranche. The adjustments to both of
these amounts are derived using
statutory formulas specified in the
Federal Reserve Act.
The Board is also announcing changes
in two other amounts, the nonexempt
deposit cutoff level and the reduced
reporting limit, that are used to
determine the frequency at which
depository institutions must submit
deposit reports.
DATES: Effective date: December 5, 2013.
Compliance dates: The new low
reserve tranche and reserve requirement
exemption amount will apply to the

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fourteen-day reserve maintenance
period that begins January 23, 2014. For
depository institutions that report
deposit data weekly, this maintenance
period corresponds to the fourteen-day
computation period that begins
December 24, 2013. For depository
institutions that report deposit data
quarterly, this maintenance period
corresponds to the seven-day
computation period that begins
December 17, 2013. The new values of
the nonexempt deposit cutoff level, the
reserve requirement exemption amount,
and the reduced reporting limit will be
used to determine the frequency at
which a depository institution submits
deposit reports effective in either June
or September 2014.
FOR FURTHER INFORMATION CONTACT:
Sophia H. Allison, Senior Counsel (202)
452–3565, Legal Division, or Ezra A.
Kidane, Financial Analyst (202) 973–
6161, Division of Monetary Affairs; for
users of Telecommunications Device for
the Deaf (TDD) only, contact (202) 263–
4869; Board of Governors of the Federal
Reserve System, 20th and C Streets
NW., Washington, DC 20551.
SUPPLEMENTARY INFORMATION: Section
19(b)(2) of the Federal Reserve Act
(12 U.S.C. 461(b)(2)) requires each
depository institution to maintain
reserves against its transaction accounts
and nonpersonal time deposits, as
prescribed by Board regulations, for the
purpose of implementing monetary
policy. Section 11(a)(2) of the Federal
Reserve Act (12 U.S.C. 248(a)(2))
authorizes the Board to require reports
of liabilities and assets from depository
institutions to enable the Board to
conduct monetary policy. The Board’s
actions with respect to each of these
provisions are discussed in turn below.
Reserve Requirements
Pursuant to section 19(b) of the
Federal Reserve Act (Act), transaction
account balances maintained at each
depository institution are subject to
reserve requirement ratios of zero, three,
or ten percent. Section 19(b)(11)(A) of
the Act (12 U.S.C. 461(b)(11)(A))
provides that a zero percent reserve
requirement shall apply at each
depository institution to total reservable
liabilities that do not exceed a certain
amount, known as the reserve
requirement exemption amount. Section
19(b)(11)(B) provides that, before
December 31 of each year, the Board

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shall issue a regulation adjusting the
reserve requirement exemption amount
for the next calendar year if total
reservable liabilities held at all
depository institutions increase from
one year to the next. No adjustment is
made to the reserve requirement
exemption amount if total reservable
liabilities held at all depository
institutions should decrease during the
applicable time period. The Act requires
the percentage increase in the reserve
requirement exemption amount to be 80
percent of the increase in total
reservable liabilities of all depository
institutions over the one-year period
that ends on the June 30 prior to the
adjustment.
Total reservable liabilities of all
depository institutions increased 9.0
percent (from $5,770 billion to $6,289
billion) between June 30, 2012, and June
30, 2013. Accordingly, the Board is
amending Regulation D to set the
reserve requirement exemption amount
for 2014 at $13.3 million, an increase of
$0.9 million from its level in 2013.1
Pursuant to Section 19(b)(2) of the Act
(12 U.S.C. 461(b)(2)), transaction
account balances maintained at each
depository institution over the reserve
requirement exemption amount and up
to a certain amount, known as the low
reserve tranche, are subject to a three
percent reserve requirement.
Transaction account balances over the
low reserve tranche are subject to a ten
percent reserve requirement. Section
19(b)(2) also provides that, before
December 31 of each year, the Board
shall issue a regulation adjusting the
low reserve tranche for the next
calendar year. The Act requires the
adjustment in the low reserve tranche to
be 80 percent of the percentage increase
or decrease in total transaction accounts
of all depository institutions over the
one-year period that ends on the June 30
prior to the adjustment.
Net transaction accounts of all
depository institutions increased 14.9
percent (from $1,371 billion to $1,575
billion) between June 30, 2012 and June
30, 2013. Accordingly, the Board is
amending Regulation D to increase the
low reserve tranche for net transaction
accounts by $9.5 million, from $79.5
1 Consistent with Board practice, the low reserve
tranche and reserve requirement exemption
amounts have been rounded to the nearest $0.1
million.

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66250

Federal Register / Vol. 78, No. 214 / Tuesday, November 5, 2013 / Rules and Regulations

2. Deposit Reports
Section 11(b)(2) of the Federal
Reserve Act authorizes the Board to
require depository institutions to file
reports of their liabilities and assets as
the Board may determine to be
necessary or desirable to enable it to
discharge its responsibility to monitor
and control the monetary and credit
aggregates. The Board screens
depository institutions each year and
assigns them to one of four deposit
reporting panels (weekly reporters,
quarterly reporters, annual reporters, or
nonreporters). The panel assignment for
annual reporters is effective in June of
the screening year; the panel assignment
for weekly and quarterly reporters is
effective in September of the screening
year.
In order to ease reporting burden, the
Board permits smaller depository
institutions to submit deposit reports
less frequently than larger depository
institutions. The Board permits
depository institutions with net
transaction accounts above the reserve
requirement exemption amount but total
transaction accounts, savings deposits,
and small time deposits below a
specified level (the ‘‘nonexempt deposit
cutoff’’) to report deposit data quarterly.
Depository institutions with net
transaction accounts above the reserve
requirement exemption amount and
with total transaction accounts, savings
deposits, and small time deposits
greater than or equal to the nonexempt
deposit cutoff are required to report
deposit data weekly. The Board requires
certain large depository institutions to
report weekly regardless of the level of
their net transaction accounts if the
depository institution’s total transaction
accounts, savings deposits, and small

time deposits exceeds or is equal to a
specified level (the ‘‘reduced reporting
limit’’). The nonexempt deposit cutoff
level and the reduced reporting limit are
adjusted annually, by an amount equal
to 80 percent of the increase, if any, in
total transaction accounts, savings
deposits, and small time deposits of all
depository institutions over the one-year
period that ends on the June 30 prior to
the adjustment.
From June 30, 2012 to June 30, 2013,
total transaction accounts, savings
deposits, and small time deposits at all
depository institutions increased 7.0
percent (from $8,890 billion to $9,508
billion). Accordingly, the Board is
increasing the nonexempt deposit cutoff
level by $16.2 million to $306.7 million
in 2014 (from $290.5 million for 2013).
The Board is also increasing the reduced
reporting limit by $91 million to $1.719
billion for 2014 (from $1.628 billion in
2013).2
Beginning in 2014, the boundaries of
the four deposit reporting panels will be
defined as follows. Those depository
institutions with net transaction
accounts over $13.3 million (the reserve
requirement exemption amount) or with
total transaction accounts, savings
deposits, and small time deposits
greater than or equal to $1.719 billion
(the reduced reporting limit) are subject
to detailed reporting, and must file a
Report of Transaction Accounts, Other
Deposits and Vault Cash (FR 2900
report) either weekly or quarterly. Of
this group, those with total transaction
accounts, savings deposits, and small
time deposits greater than or equal to
$306.7 million (the nonexempt deposit
cutoff level) are required to file the FR
2900 report each week, while those with
total transaction accounts, savings
deposits, and small time deposits less
than $306.7 million are required to file
the FR 2900 report each quarter. Those
depository institutions with net
transaction accounts less than or equal
to $13.3 million (the reserve
requirement exemption amount) and
with total transaction accounts, savings
deposits, and small time deposits less
than $1.719 billion (the reduced
reporting limit) are eligible for reduced
reporting, and must either file a deposit
report annually or not at all. Of this
group, those with total deposits greater
than $13.3 million (but with total
transaction accounts, savings deposits,
and small time deposits less than $1.719
billion) are required to file the Annual
Report of Deposits and Reservable

2 Consistent with Board practice, the nonexempt
deposit cutoff level has been rounded to the nearest

$0.1 million, and the reduced reporting limit has
been rounded to the nearest $1 million.

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million for 2013 to $89.0 million for
2014.
The new low reserve tranche and
reserve requirement exemption amount
will be effective for all depository
institutions for the fourteen-day reserve
maintenance period beginning
Thursday, January 23, 2014. For
depository institutions that report
deposit data weekly, this maintenance
period corresponds to the fourteen-day
computation period that begins
December 24, 2013. For depository
institutions that report deposit data
quarterly, this maintenance period
corresponds to the seven-day
computation period that begins
December 17, 2013.

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Liabilities (FR 2910a) report annually,
while those with total deposits less than
or equal to $13.3 million are not
required to file a deposit report. A
depository institution that adjusts
reported values on its FR 2910a report
in order to qualify for reduced reporting
will be shifted to an FR 2900 reporting
panel.
Notice and Regulatory Flexibility Act.
The provisions of 5 U.S.C. 553(b)
relating to notice of proposed
rulemaking have not been followed in
connection with the adoption of these
amendments. The amendments involve
expected, ministerial adjustments
prescribed by statute and by the Board’s
policy concerning reporting practices.
The adjustments in the reserve
requirement exemption amount, the low
reserve tranche, the nonexempt deposit
cutoff level, and the reduced reporting
limit serve to reduce regulatory burdens
on depository institutions. Accordingly,
the Board finds good cause for
determining, and so determines, that
notice in accordance with 5 U.S.C.
553(b) is unnecessary. Consequently,
the provisions of the Regulatory
Flexibility Act, 5 U.S.C. 601, do not
apply to these amendments.
List of Subjects in 12 CFR Part 204
Banks, banking, Reporting and
recordkeeping requirements.
For the reasons set forth in the
preamble, the Board is amending 12
CFR part 204 as follows:
PART 204—RESERVE
REQUIREMENTS OF DEPOSITORY
INSTITUTIONS (REGULATION D)
1. The authority citation for part 204
continues to read as follows:

■

Authority: 12 U.S.C. 248(a), 248(c), 371a,
461, 601, 611, and 3105.

2. Section 204.4(f) is revised 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 below to net
transaction accounts, nonpersonal time
deposits, and Eurocurrency liabilities of
the institution during the computation
period.

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Federal Register / Vol. 78, No. 214 / Tuesday, November 5, 2013 / Rules and Regulations

Reservable liability

Reserve requirement

NET TRANSACTION ACCOUNTS:
$0 to reserve requirement exemption amount ($13.3 million) ..........................................................
Over reserve requirement exemption amount ($13.3 million) and up to low reserve tranche
($89.0 million).
Over low reserve tranche ($89.0 million) ..........................................................................................
Nonpersonal time deposits ...............................................................................................................
Eurocurrency liabilities ......................................................................................................................

By order of the Board of Governors of the
Federal Reserve System, under delegated
authority, October 30, 2013.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2013–26404 Filed 11–4–13; 8:45 am]
BILLING CODE 6210–01–P

BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Part 1005
[Docket No. CFPB–2013–0032]
RIN 3170–AA33

Electronic Fund Transfers
(Regulation E)
Bureau of Consumer Financial
Protection.
ACTION: Notice of publication of
remittance rule safe harbor list.
AGENCY:

On September 26, 2012, the
Bureau of Consumer Financial
Protection (Bureau) issued a safe harbor
list of countries that qualify for an
exception in subpart B of Regulation E,
which implements the Electronic Fund
Transfer Act, and published this list on
its Web site. The Bureau is now
publishing the current list, which is
unchanged from the prior release, in the
Federal Register. The Bureau recognizes
that the list may change, and it intends
to revise the list periodically.
DATES: This list is effective on October
28, 2013. The Bureau will next consider
suggestions and input on additions or
deletions made on or before March 17th,
2014. However, to facilitate compliance,
the Bureau will not remove a country
from the list before July 1st, 2014.
ADDRESSES: The Bureau welcomes your
input related to whether it has included
the appropriate countries and areas on
the list. To provide input, please send
your feedback and any supporting
materials (in English) to:
—CFPB_CountriesList@cfpb.gov or
—Office of the Executive Secretary,
Bureau of Consumer Financial
Protection, 1700 G Street NW.,
Washington, DC 20552.

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In general, all comments received will
be posted without change to
regulations.gov, including any personal
information provided. Sensitive
personal information, such as account
numbers or social security numbers,
should not be included.
FOR FURTHER INFORMATION CONTACT: Eric
Goldberg or Lauren Weldon, Counsels,
Division of Research, Markets, and
Regulations, Bureau of Consumer
Financial Protection, 1700 G Street NW.,
Washington, DC 20552, at (202) 435–
7700 or at CFPB_RemittanceRule@
cfpb.gov. The Bureau also allows
interested parties to sign up to receive
an alert by email any time the list
changes. To receive an alert when the
Bureau releases a revised countries list,
please sign up for email updates on the
Bureau’s Web site at http://
www.consumerfinance.gov/remittancestransfer-rule-amendment-toregulation-e/.
SUPPLEMENTARY INFORMATION: The
Bureau published its remittance rule on
February 7, 2012 (77 FR 6194)
implementing section 1073 of the DoddFrank Wall Street Reform and Consumer
Protection Act. The remittance rule,
which includes several additional
revisions and amendments published in
the Federal Register on July 10, 2012
(77 FR 40459), August 20, 2012 (77 FR
50244), May 22, 2013 (78 FR 30662),
and August 14, 2013 (78 FR 49365)
(collectively the Final Rule), takes effect
on October 28, 2013. Pursuant to the
Final Rule, the Bureau determined it
would publish a safe harbor list of
countries that qualify for an exception
in the rule.
That exception permits estimates of
certain disclosures in lieu of exact
amounts, unless the provider has
information that a country’s laws, or the
method by which transactions are
conducted in that country, permits a
determination of the exact disclosure
amount. The Final Rule, which goes
into effect on October 28, 2013,
generally requires remittance transfer
providers to give consumers sending
remittance transfers certain specified
disclosures. Among other requirements,

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0 percent of amount.
3 percent of amount.
$2,271,000 plus 10 percent of amount
over $89.0 million.
0 percent.
0 percent.

a provider generally must disclose the
applicable exchange rate, any fees
imposed and taxes collected by the
provider, and covered third-party fees.1
In particular circumstances, the Final
Rule permits providers to estimate
certain amounts that the rule requires
them to disclose.
As it relates to this notice, a
permanent exception in the Final Rule
permits estimates of certain disclosures
when, among other circumstances, a
remittance transfer provider cannot
determine the exact amounts it must
disclose at the time the disclosures are
required because the laws of the
recipient country do not permit such
determinations. See 12 CFR
1005.32(b)(1)(i)(A).2 The Bureau stated
in the Federal Register notice published
on February 7, 2012 (77 FR 6194) that
it would provide a list of countries that
qualify for this permanent exception to
facilitate providers’ compliance with the
rule. The Bureau issued this list on its
Web site on September 26, 2012.3
The Bureau is now publishing the list
in the Federal Register. The list is
unchanged from the list first released in
September 2012.
The current list of countries and other
areas contains: Aruba, Brazil, China,
Ethiopia and Libya. This list is current
as of the date of its publication in the
Federal Register.
As noted in the Final Rule, the list
contains countries and other areas
whose laws the Bureau believes, based
on its interpretation of the permanent
exception and relevant countries’ laws,
1 As described in the Final Rule, the term
‘‘covered third party fees’’ includes all fees charged
by persons other than the provider except for fees
imposed by the designated recipient’s institution
for receiving a remittance transfer into an account
unless the institution acts as an agent of the
remittance transfer provider. 12 CFR 1005.30(h)(1).
2 See generally 12 CFR 1005.32 for the Final
Rule’s provisions on providing estimates for
required disclosures.
3 Working to Help Industry Understand and
Comply with the New Remittance Rule: Countries
List and Webinar, available at: http://
www.consumerfinance.gov/blog/working-to-helpindustry-understand-and-comply-with-the-newremittance-rule-countries-list-and-webinar/ (last
visited October 22, 2013).

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