Federal Register / Vol. 88, No. 228 / Wednesday, November 29, 2023 / Rules and Regulations 83317 

4 5 U.S.C. 603 and 604. 

5 44 U.S.C. 3506; 5 CFR part 1320. 

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). 

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

determines, that notice in accordance 

with 5 U.S.C. 553(b) is unnecessary. 

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 

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 204 

Banks, Banking, Reporting and 

recordkeeping requirements. 

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: 

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. 

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).

0 percent of amount. 

Over low reserve tranche ($644.0 million) .......................................................................... $0 plus 0 percent of amount over $644.0 million. 

Nonpersonal time deposits .................................................................................................. 0 percent. 

Eurocurrency liabilities ........................................................................................................ 0 percent. 

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 

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

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 


ddrumheller on DSK120RN23PROD with RULES1
83318 Federal Register / Vol. 88, No. 228 / Wednesday, November 29, 2023 / Rules and Regulations 

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). 

9The 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. 

10See 12 CFR 209.4(f) and n. 8 and accompanying 

text, supra. 

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

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

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 

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. 

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. 

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: 

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 

FEDERAL RESERVE SYSTEM 

12 CFR Part 213 

[Docket No. R–1821] 

RIN 7100–AG70 

CONSUMER FINANCIAL PROTECTION 

BUREAU 

12 CFR Part 1013 

Consumer Leasing (Regulation M) 

AGENCY: Board of Governors of the 

Federal Reserve System (Board) and 

Consumer Financial Protection Bureau 

(Bureau). 

ACTION: Final rules, official 

interpretations, and commentary. 

SUMMARY: 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 


ddrumheller on DSK120RN23PROD with RULES1