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.

Rules and Regulations Federal Register

8853 

Vol. 86, No. 26 

Wednesday, February 10, 2021 

1Reserve requirements for nonpersonal time 

deposits and Eurocurrency liabilities have been set 

at zero percent since 1990. See 55 FR 50540 

(December 7, 1990). 

2 Interim Final Rule, 85 FR16525 (Mar. 24, 2020). 

3Press Release, ‘‘Federal Reserve Actions to 

Support the Flow of Credit to Households and 

Businesses’’ (March 15, 2020), https://

www.federalreserve.gov/newsevents/pressreleases/ 

monetary20200315b.htm. 

4 5 U.S.C. 553(d). 

5 5 U.S.C. 603, 604. 

6 44 U.S.C. 3506; see 5 CFR part 1320 Appendix 

A.1. 

7Public Law 106–102, section 722, 113 Stat. 

1338, 1471 (1999). 

FEDERAL RESERVE SYSTEM 

12 CFR Part 204 

[Docket No. R–1702; RIN 7100–AF 76] 

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 as a final rule, without change, 

its March 24, 2020 interim final rule 

amending its Regulation D (Reserve 

Requirements of Depository Institutions) 

to lower reserve requirement ratios on 

transaction accounts maintained at 

depository institutions to zero percent. 

DATES: The final rule is effective March 

12, 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; Discussion 

Section 19 of the Federal Reserve Act 

(the ‘‘Act’’) imposes reserve 

requirements on certain types of 

deposits and other liabilities of 

depository institutions. Specifically, 

section 19(b)(2) of the Act (12 U.S.C. 

461(b)(2)) requires each depository 

institution to maintain reserves against 

its transaction accounts, nonpersonal 

time deposits, and Eurocurrency 

liabilities, as prescribed by Board 

regulations, for the purpose of 

implementing monetary policy. The 

Board’s Regulation D (Reserve 

Requirements of Depository Institutions, 

12 CFR part 204) implements the 

reserve requirements provisions of 

section 19 of the Act. 

On March 15, 2020, the Board 

announced an interim final rule 

amending Regulation D to lower all 

transaction account reserve requirement 

ratios to zero percent, thereby 

eliminating all reserve requirements.1

The Board’s interim final rule was 

published on March 24, 2020.2 In its 

March 15 press release announcing this 

action, the Board stated: 

For many years, reserve requirements 

played a central role in the implementation 

of monetary policy by creating a stable 

demand for reserves. In January 2019, the 

FOMC announced its intention to implement 

monetary policy in an ample reserves regime. 

Reserve requirements do not play a 

significant role in this operating framework. 

In light of the shift to an ample reserves 

regime, the Board has reduced reserve 

requirement ratios to zero percent effective 

on March 26, the beginning of the next 

reserve maintenance period. This action 

eliminates reserve requirements for 

thousands of depository institutions and will 

help to support lending to households and 

businesses.3

The Board requested public comment 

on the interim final rule. The public 

comment period closed on May 26, 

2020. The Board received no comments 

on the interim final rule and, 

accordingly, is adopting the interim 

final rule as a final rule without change. 

II. Regulatory Analysis 

A. Administrative Procedure Act and 

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.4 Therefore, the final rule will 

become effective on March 12, 2021. 

The interim final rule will remain in 

effect until the final rule becomes 

effective. 

B. Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

does not apply to a rulemaking when a 

general notice of proposed rulemaking 

is not required.5 Because the Board 

previously determined that it was 

unnecessary to publish a general notice 

of proposed rulemaking for the interim 

final rule, the RFA’s requirements 

relating to an initial and final regulatory 

flexibility analysis do not apply to this 

final rule. 

C. Paperwork Reduction Act of 1995 

The Paperwork Reduction Act of 

1995 6 (PRA) states that no agency may 

conduct or sponsor, nor is a respondent 

required to respond to, 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. Use of Plain Language 

Section 722 of the Gramm-Leach 

Bliley Act 7 requires banking agencies to 

use plain language in all proposed and 

final rules published after January 1, 

2000. The Board received no comments 

with respect to making the interim final 

rule easier to understand and is 

adopting the final rule without change. 

Authority and Issuance 

■ For the reasons set forth in the 

preamble, the interim final rule 

amending 12 CFR part 204 of chapter II, 

title 12 of the Code of Federal 

Regulations, which was published at 85 

FR 16525 on March 24, 2020, is adopted 

as a final rule without change. 

By order of the Board of Governors of the 

Federal Reserve System. 

Margaret McCloskey Shanks, 

Deputy Secretary of the Board. 

[FR Doc. 2020–28756 Filed 2–9–21; 8:45 am] 

BILLING CODE 6210–01–P