100492 Federal Register / Vol. 89, No. 239 / Thursday, December 12, 2024 / Notices 

burden estimates; (c) ways to enhance 

the quality, utility, and clarity of the 

information collected; and (d) ways to 

minimize the burden of the collection of 

information on the respondents, 

including the use of automated 

collection techniques or other forms of 

information technology. Pursuant to the 

Small Business Paperwork Relief Act of 

2002, Public Law 107–198, see 44 U.S.C. 

3506(c)(4), the FCC seeks specific 

comment on how it might ‘‘further 

reduce the information collection 

burden for small business concerns with 

fewer than 25 employees.’’ 

OMB Control Number: 3060–0174. 

Title: Sections 73.1212, 76.1615, and 

76.1715, Sponsorship Identification. 

Form Number: Not applicable. 

Type of Review: Revision of a 

currently approved collection. 

Respondents: Business or other forprofit entities and Individuals or 

households. 

Number of Respondents and 

Responses: 52,760 respondents, 

1,939,422 responses. 

Estimated Time per Response: 0.0011 

hour–2.166 hours. 

Frequency of Response: 

Recordkeeping requirement; Third party 

disclosure requirement; On occasion 

reporting requirement. 

Obligation to Respond: Required to 

obtain or retain benefits. The statutory 

authority for this collection of 

information is contained in 47 U.S.C. 

151, 152, 154(i), 154(j), 303(r), 307, 317, 

and 325(c) of the Communications Act, 

as amended. 

Total Annual Burden: 347,851 hours. 

Total Annual Cost: $2,010,723. 

Needs and Uses: The Commission, in 

the Second Report and Order, FCC 24– 

61, takes steps to ensure clear and 

reasonable foreign sponsorship 

identification rules. Section 73.1212(j) 

of the Commission’s rules, 47 CFR 

73.1212(j), requires radio and television 

broadcast stations to disclose to their 

audiences, at the time of broadcast, 

when material aired pursuant to the 

lease of time on the station has been 

sponsored, paid for, or furnished by a 

foreign governmental entity. Section 

73.1212(k) of the Commission’s rules, 47 

CFR 73.1212(k), imposes corresponding 

obligations on stations with section 

325(c) permits. The Commission’s 

authority to impose these regulations 

stems from section 317 of the 

Communications Act, which requires 

broadcast licensees to inform their 

audiences when the station has been 

paid to air a particular program, in 

furtherance of the longstanding 

broadcasting tenet that the public has a 

right to know the identity of those that 

solicit its support. 

The foreign sponsorship identification 

rules require broadcast licensees, at the 

time of entering or renewing a lease 

agreement (unless a once-a-year 

exception applies), to exercise 

reasonable diligence to ascertain 

whether a programming disclosure is 

required. To ensure that licensees are 

complying with their reasonable 

diligence and disclosure obligations, the 

foreign sponsorship identification rules 

require licensees to memorialize their 

required inquiries of lessees and to 

maintain records of their programming 

disclosures and their reasonable 

diligence efforts. 

In the Second Report and Order, the 

Commission modified the rule’s 

information collection requirements by 

adopting an approach that provides 

licensees with two options for 

demonstrating that they have met their 

duty of inquiry in seeking to obtain the 

information needed to determine 

whether the programming provided by a 

lessee is sponsored by a foreign 

governmental entity. The Commission 

designed this approach to provide 

licensees with as much flexibility as 

possible and to minimize their 

paperwork costs and burdens while still 

ensuring compliance with the 

reasonable diligence requirements. 

One option available to licensees is 

the use of certifications, where both the 

licensee and the lessee complete a 

certification reflecting the 

communications and inquiries required 

under the existing rules. Licensees and 

lessees have the option either to use 

sample certification language set forth 

in simple, one-page, ‘‘check-box’’ 

templates appended to the Second 

Report and Order or to use language of 

the parties’ own choosing. Most licensee 

and lessee employees should be able to 

complete the forms quickly and readily, 

based upon their existing knowledge 

and understanding. It is highly unlikely 

that either the licensee or the lessee 

would need to engage in any type of 

research to respond to the queries 

contained in the certifications. Notably, 

these are the same inquiries the 

Commission adopted in the First Report 

and Order, only formatted now as a 

certification. If licensees and lessees 

prefer not to use the Commission’s 

templates, they may use their own 

certification language, provided that 

language addresses the points listed in 

§ 73.1212(j)(3)(i) through (iii) of the 

rules, which were adopted in the First 

Report and Order. The Commission 

granted this flexibility to alleviate or 

minimize costs for licensees that already 

had developed their own certifications 

based on the existing foreign 

sponsorship identification rules. A 

lessee’s certification should convey the 

information needed to determine 

whether a disclosure is required and the 

information needed for a broadcast 

disclosure if one is required. 

As an alternative to the certification 

option, licensees may choose to ask 

their lessees for screenshots of lessees’ 

search results of two federal government 

websites (the Department of Justice’s 

FARA database and the Commission’s 

U.S.-based foreign media outlet report). 

Licensees choosing this option must 

still comply with all other aspects of the 

current rules, as they have been 

required to do since the compliance 

date of the First Report and Order. 

Licensees are encouraged to include in 

their lease agreements a requirement for 

lessees to provide notice of any change 

in status so as to trigger the need for a 

foreign sponsorship disclosure. 

Federal Communications Commission. 

Marlene Dortch, 

Secretary, Office of the Secretary. 

[FR Doc. 2024–29222 Filed 12–11–24; 8:45 am] 

BILLING CODE 6712–01–P 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

[OMB No. 3064–0165; –0183] 

Agency Information Collection 

Activities: Proposed Collection 

Renewal; Comment Request 

AGENCY: Federal Deposit Insurance 

Corporation (FDIC). 

ACTION: Notice and request for comment. 

SUMMARY: The FDIC, as part of its 

obligations under the Paperwork 

Reduction Act of 1995, invites the 

general public and other Federal 

agencies to take this opportunity to 

comment on the request to renew the 

existing information collections 

described below (OMB Control No. 

3064–0165 and –0183). The notices of 

proposed renewal for these information 

collections were previously published 

in the Federal Register on October 10, 

2024, and October 21, 2024, allowing for 

a 60-day comment period. 

DATES: Comments must be submitted on 

or before January 13, 2025. 

ADDRESSES: Interested parties are 

invited to submit written comments to 

the FDIC by any of the following 

methods: 

• Agency website: https://

www.fdic.gov/resources/regulations/ 

federal-register-publications/. 

• Email: comments@fdic.gov. Include 

the name and number of the collection 

in the subject line of the message. 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 239 / Thursday, December 12, 2024 / Notices 100493 

• Mail: Manny Cabeza (202–898– 

3767), Regulatory Counsel, MB–3128, 

Federal Deposit Insurance Corporation, 

550 17th Street NW, Washington, DC 

20429. 

• Hand Delivery: Comments may be 

hand-delivered to the guard station at 

the rear of the 17th Street NW building 

(located on F Street NW), on business 

days between 7 a.m. and 5 p.m. 

Written comments and 

recommendations for the proposed 

information collection also should be 

sent within 30 days of publication of 

this notice to www.reginfo.gov/public/ 

do/PRAMain. Find this particular 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comment’’’’ or by using the 

search function. 

FOR FURTHER INFORMATION CONTACT: 

Manny Cabeza, Regulatory Counsel, 

202–898–3767, mcabeza@fdic.gov, MB– 

3128, Federal Deposit Insurance 

Corporation, 550 17th Street NW, 

Washington, DC 20429. 

SUPPLEMENTARY INFORMATION: Proposal 

to renew the following currently 

approved collection of information: 

1. Title: Pillar 2 Guidance—Advanced 

Capital Framework. 

OMB Number: 3064–0165. 

Form Number: None. 

Affected Public: Insured state 

nonmember banks and certain 

subsidiaries of these entities. 

Burden Estimate: 

SUMMARY OF ESTIMATED ANNUAL BURDEN

[OMB No. 3064–0165] 

Information collection (IC) 

(obligation to respond) 

Type of burden 

(frequency of response) 

Number of 

respondents 

Number of 

responses 

per 

respondent 

Time per 

response 

(HH:MM) 

Annual burden 

(hours) 

Supervisory Guidance: Supervisory 

Process of Capital Adequacy (Pillar 2) Related to the Implementation of the Basel II Advanced Capital Framework (Voluntary).

Recordkeeping (Quarterly) ............... 1 4 105:00 420 

Total Annual Burden (Hours): .... ........................................................... ........................ ........................ ........................ 420 

Source: FDIC. 

General Description of Collection. In 

2008, the Office of the Comptroller of 

the Currency, the Board of Governors of 

the Federal Reserve System, and the 

FDIC issued a supervisory guidance 

document related to the supervisory 

review process of capital adequacy 

(Pillar 2) in connection with the 

implementation of the Basel II 

Advanced Capital Framework. Sections 

37, 41, 43 and 46 of the guidance 

include possible information 

collections. Section 37 provides that 

banks should state clearly the definition 

of capital used in any aspect of its 

internal capital adequacy assessment 

process (ICAAP) and document any 

changes in the internal definition of 

capital. Section 41 provides that banks 

should maintain thorough 

documentation of its ICAAP. Section 43 

specifies that the board of directors 

should approve the bank’s ICAAP, 

review it on a regular basis, and approve 

any changes. Section 46 recommends 

that boards of directors periodically 

review the assessment of overall capital 

adequacy and analyze how measures of 

internal capital adequacy compare with 

other capital measures such as 

regulatory or accounting. There has 

been no change in the method or 

substance of this information collection, 

the burden is unchanged from the 2021 

burden estimate. 

2. Title: Credit Risk Retention. 

OMB Number: 3064–0183. 

Form Number: None. 

Affected Public: Insured State 

nonmember banks, State savings 

institutions, insured State branches of 

foreign banks, and any subsidiary of the 

aforementioned entities. 

Burden Estimate: 

IC description Type of burden 

(obligation to respond) 

Frequency of 

response 

Estimated 

number of 

respondents 

Number of 

responses/ 

respondent 

Hours per 

response 

Total annual 

estimated 

burden 

Disclosure Burdens 

§ 373.4(a)(2) Standard Risk Retention—Horizontal 

Interest.

Disclosure (Mandatory) ... On Occasion 2 2 5.5 22 

§ 373.4(a)(1) Standard Risk Retention—Vertical Interest.Disclosure (Mandatory) ... On Occasion 2 2 2.0 8 

§ 373.4(a)(3) Standard Risk Retention—Combined 

Interest *.

Disclosure (Mandatory) ... On Occasion 1 1 7.5 8 

§ 373.5 Revolving Master Trusts ............................... Disclosure (Mandatory) ... On Occasion 3 2 7.0 42 

§ 373.6 Eligible ABCP Conduits * .............................. Disclosure (Mandatory) ... On Occasion 1 1 3.0 3 

§ 373.7 Commercial MBS * ........................................ Disclosure (Mandatory) ... On Occasion 1 1 20.75 21 

§ 373.10 Qualified Tender Option Bonds * ................ Disclosure (Mandatory) ... On Occasion 1 1 6.0 6 

§ 373.11 Allocation of Risk Retention to an Originator *.Disclosure (Mandatory) ... On Occasion 1 1 2.5 3 

§ 373.13 Exemption for Qualified Residential Mortgages *.Disclosure (Mandatory) ... On Occasion 1 1 1.25 1 

§ 373.15 Exemption for Qualifying Commercial 

Loans, Commercial Real Estate and Automobile 

Loans *.

Disclosure (Mandatory) ... On Occasion 1 1 20.0 20 

§ 373.16 Underwriting Standards for Qualifying 

Commercial Loans *.

Disclosure (Mandatory) ... On Occasion 1 1 1.25 1 

§ 373.17 Underwriting Standards for Qualifying 

Commercial Real Estate Loans *.

Disclosure (Mandatory) ... On Occasion 1 1 1.25 1 


ddrumheller on DSK120RN23PROD with NOTICES1
100494 Federal Register / Vol. 89, No. 239 / Thursday, December 12, 2024 / Notices 

1 Public Law 111–2–3, 124 Stat. 1376 (2010). 

2 79 FR 77740. 

3 Each agency adopted the same rule text but each 

agency’s version of its rule is codified in different 

parts of the Code of Federal Regulations with 

substantially identical section numbers (e.g., __.01; 

.ll02, etc.). Rule citations herein are to FDIC’s 

version of the Rule which is codified at 12 CFR part 

373. 4 12 CFR 373.2. 

IC description Type of burden 

(obligation to respond) 

Frequency of 

response 

Estimated 

number of 

respondents 

Number of 

responses/ 

respondent 

Hours per 

response 

Total annual 

estimated 

burden 

§ 373.18 Underwriting Standards for Qualifying 

Automobile Loans *.

Disclosure (Mandatory) ... On Occasion 1 1 1.25 1 

Disclosure Subtotal ............................................. .......................................... ..................... ........................ ........................ ........................ 137 

Recordkeeping Burdens 

§ 373.4(a)(2) Standard Risk Retention—Horizontal 

Interest.

Recordkeeping (Mandatory).On Occasion 2 2 0.5 2 

§ 373.4(a)(1) Standard Risk Retention—Vertical Interest.Recordkeeping (Mandatory).On Occasion 2 2 0.5 2 

§ 373.4(a)(3) Standard Risk Retention—Combined 

Interest *.

Recordkeeping (Mandatory).On Occasion 1 1 0.5 1 

§ 373.5 Revolving Master Trusts ............................... Recordkeeping (Mandatory).On Occasion 3 2 0.5 3 

§ 373.6 Eligible ABCP Conduits * .............................. Recordkeeping (Mandatory).On Occasion 1 1 20.0 20 

§ 373.7 Commercial MBS * ........................................ Recordkeeping (Mandatory).On Occasion 1 1 30.0 30 

§ 373.11 Allocation of Risk Retention to an Originator *.Recordkeeping (Mandatory).On Occasion 1 1 20.0 20 

§ 373.13 Exemption for Qualified Residential Mortgages *.Recordkeeping (Mandatory).On Occasion 1 1 40.0 40 

§ 373.15 Exemption for Qualifying Commercial 

Loans, Commercial Real Estate and Automobile 

Loans *.

Recordkeeping (Mandatory).On Occasion 1 1 0.5 1 

§ 373.16 Underwriting Standards for Qualifying 

Commercial Loans *.

Recordkeeping (Mandatory).On Occasion 1 1 40.0 40 

§ 373.17 Underwriting Standards for Qualifying 

Commercial Real Estate Loans *.

Recordkeeping (Mandatory).On Occasion 1 1 40.0 40 

§ 373.18 Underwriting Standards for Qualifying 

Automobile Loans *.

Recordkeeping (Mandatory).On Occasion 1 1 40.0 40 

Recordkeeping Subtotal ..................................... .......................................... ..................... ........................ ........................ ........................ 239 

Total Annual Burden Hours ......................... .......................................... ..................... ........................ ........................ ........................ 376 hours 

General Description of Collection: 

This information collection request 

comprises disclosure and recordkeeping 

requirements under the credit risk 

retention rule issued pursuant to section 

15G of the Securities Exchange Act of 

1934 (15 U.S.C. 78o–11), as added by 

section 941 of the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act (Dodd-Frank).1 The Credit Risk 

Retention rule (the Rule) was jointly 

issued in 2015 by the FDIC, the Office 

of the Comptroller of the Currency 

(OCC), the Federal Reserve Board 

(Board’’, the Securities and Exchange 

Commission (the Commission) and, 

with respect to the portions of the Rule 

addressing the securitization of 

residential mortgages, the Federal 

Housing Finance Agency (FHFA) and 

the Department of Housing and Urban 

Development (HUD).2 The FDIC 

regulations corresponding to the Rule 

are found at 12 CFR part 373.3

Section 941 of Dodd-Frank requires 

the Board, the FDIC, the OCC 

(collectively, the Federal banking 

agencies), the Commission and, in the 

case of the securitization of any 

‘‘residential mortgage asset,’’ together 

with HUD and FHFA, to jointly 

prescribe regulations that (i) require an 

issuer of an asset-backed security or a 

person who organizes and initiates an 

asset backed securities transaction by 

selling or transferring assets, either 

directly or indirectly, including through 

an affiliate, to the issuer (issuer or 

organizer) to retain not less than five 

percent of the credit risk of any asset 

that the issuer or organizer, through the 

issuance of an asset-backed security 

(ABS), transfers, sells or conveys to a 

third party and (ii) prohibit an issuer or 

organizer from directly or indirectly 

hedging or otherwise transferring the 

credit risk that the issuer or organizer is 

required to retain under section 941 and 

the agencies’ implementing rules. 

Exempted from the credit risk retention 

requirements of section 941 are certain 

types of securitization transactions, 

including ABS collateralized solely by 

qualified residential mortgages (QRMs), 

as that term is defined in the Rule. In 

addition, section 941 provides that the 

agencies must permit an issuer or 

organizer to retain less than five percent 

of the credit risk of residential mortgage 

loans, commercial real estate (CRE) 

loans, commercial loans and automobile 

loans that are transferred, sold or 

conveyed through the issuance of ABS 

by the issuer or organizer, if the loans 

meet underwriting standards 

established by the Federal banking 

agencies. 

The FDIC implemented section 941 of 

Dodd-Frank through 12 CFR part 373 

(the Rule). The Rule defines a 

securitizer as (1) the depositor of the 

asset-backed securities (if the depositor 

is not the sponsor); or (2) the sponsor of 

the asset-backed securities.4 The Rule 

provides a menu of credit risk retention 

options from which securitizers can 

choose and sets out the standards, 

including disclosure, recordkeeping, 

and reporting requirements, for each 

option; identifies the eligibility criteria, 

including certification and disclosure 

requirements, that must be met for ABS 

offerings to qualify for the QRM and 

other exemptions; specifies the 

underwriting standards for CRE loans, 

commercial loans and automobile loans, 

as well as disclosure, certification and 

recordkeeping requirements, that must 

be met for ABS issuances collateralized 

by such loans to qualify for reduced 

credit risk retention; and sets forth the 

circumstances under which retention 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 239 / Thursday, December 12, 2024 / Notices 100495 

1The authority to pay interest was originally 

enacted through the Financial Services Regulatory 

Relief Act of 2006, with an effective date of October 

1, 2011. The date was moved forward to 2008 by 

the Emergency Economic Stabilization Act of 2008. 

2Final Rule, Regulation D, 86 FR 29937 (June 4, 

2021); Press Release, ‘‘Federal Reserve Board issues 

final rule amending Regulation D with regard to 

interest on reserve balances’’ (June 2, 2021), https:// 

www.federalreserve.gov/newsevents/pressreleases/ 

bcreg20210602a.htm. 

3 In a correspondent-respondent relationship, the 

correspondent bank provides banking services on 

behalf of the respondent bank. This often includes 

the correspondent bank executing payments on 

behalf of the respondent bank and its customers. A 

respondent bank typically maintains an account 

with its correspondent bank. 

4 74 FR 5628, 5629 (Jan. 30, 2009). 

obligations may be allocated by 

sponsors to originators, including 

disclosure and monitoring 

requirements. 

Part 373 contains several 

requirements that qualify as information 

collections under the Paperwork 

Reduction Act of 1995 (PRA). The 

information collection requirements are 

found in 12 CFR 373.4, 373.5, 373.6, 

373.7, 373.8, 373.9, 373.10, 373.11, 

373.13, 373.15, 373.16, 373.17, 373.18, 

and 373.19(g). The recordkeeping 

requirements relate primarily to (i) the 

adoption and maintenance of various 

policies and procedures to ensure and 

monitor compliance with regulatory 

requirements and (ii) certifications, 

including as to the effectiveness of 

internal supervisory controls. The 

required disclosures for each risk 

retention option are intended to provide 

investors with material information 

concerning the sponsor’s retained 

interest in a securitization transaction 

(e.g., the amount, form and nature of the 

retained interest, material assumptions 

and methodology, representations and 

warranties). Compliance with the 

information collection requirements is 

mandatory, responses to the information 

collections will not be kept confidential 

and, with the exception of the 

recordkeeping requirements in 12 CFR 

373.4(d), 373.5(k)(3), and 373.15(d), the 

Rule does not specify a mandatory 

retention period for the information. 

Request for Comment 

Comments are invited on (a) whether 

the collection of information is 

necessary for the proper performance of 

the FDIC’s functions, including whether 

the information has practical utility; (b) 

the accuracy of the estimates of the 

burden of the information collection, 

including the validity of the 

methodology and assumptions used; (c) 

ways to enhance the quality, utility, and 

clarity of the information to be 

collected; and (d) ways to minimize the 

burden of the collection of information 

on respondents, including through the 

use of automated collection techniques 

or other forms of information 

technology. All comments will become 

a matter of public record. 

Federal Deposit Insurance Corporation. 

Dated at Washington, DC, on December 9, 

2024. 

James P. Sheesley, 

Assistant Executive Secretary. 

[FR Doc. 2024–29295 Filed 12–11–24; 8:45 am] 

BILLING CODE 6714–01–P 

FEDERAL RESERVE SYSTEM 

[Docket No. OP–1747] 

Guidelines for Evaluating Account and 

Services Requests 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Final guidance. 

SUMMARY: The Board of Governors of the 

Federal Reserve System (Board) has 

clarified that its Guidelines Covering 

Access to Accounts and Services at 

Federal Reserve Banks (Guidelines) 

apply to Excess Balance Accounts at the 

Federal Reserve Banks (Reserve Banks). 

DATES: Implementation Date is 

December 12, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Jason Hinkle, Deputy Associate Director 

(202–258–9873), Division of Reserve 

Bank Operations and Payment Systems, 

Kristen Payne, Lead Financial 

Institution and Policy Analyst (202– 

306–9573), Division of Monetary 

Affairs, or Corinne Milliken Van Ness, 

Senior Counsel (202–641–1605), Legal 

Division, Board of Governors of the 

Federal Reserve System. For users of 

text telephone systems (TTY) or any 

TTY-based Telecommunications Relay 

Services, please call 711 from any 

telephone, anywhere in the United 

States. 

SUPPLEMENTARY INFORMATION: 

I. Background on Guidelines 

On August 19, 2022, the Board 

implemented the Guidelines, which 

consist of six risk-based principles for 

Reserve Banks to consider when 

evaluating requests for access to Reserve 

Bank accounts and services (accounts 

and services). The risks considered 

under the Guidelines include various 

risks to the Reserve Bank, risks to the 

overall payments systems, risks to the 

stability of the U.S. financial system, 

risks to the overall economy by 

facilitating activities such as money 

laundering or other illicit activity, and 

risk of any adverse impact on the 

Federal Reserve’s ability to implement 

monetary policy. 

The Guidelines apply to requests for 

accounts and services from member 

banks or other entities that meet the 

definition of depository institution 

under section 19(b) of the Federal 

Reserve Act (12 U.S.C. 461(b)(1)(A)), as 

well as Edge and Agreement 

Corporations (12 U.S.C. 601–604a, 611– 

631), and U.S. branches and agencies of 

foreign banks (12 U.S.C. 347d). The 

Guidelines do not apply to accounts that 

the Reserve Banks provide (i) as 

depository and fiscal agent for the 

Treasury and certain governmentsponsored entities (12 U.S.C. 391, 393– 

95, 1823, 1435), (ii) to certain 

international organizations (22 U.S.C. 

285d, 286d, 290o–3, 290i–5, 290l–3), 

(iii) to designated financial market 

utilities (12 U.S.C. 5465), (iv) pursuant 

to the Board’s Regulation N (12 CFR 

214), or (v) pursuant to the Board’s 

Guidelines for Evaluating Joint Account 

Requests. 

II. Excess Balance Accounts 

Reserve Banks began to pay interest 

on balances maintained at the Reserve 

Banks by or on behalf of eligible 

institutions in October 2008.1 Until July 

2021, balances maintained by 

depository institutions at a Reserve 

Bank were divided into required 

reserves (balances held to satisfy a 

reserve requirement) and excess 

reserves (balances maintained in excess 

of required reserves).2 Eligible 

institutions that were respondents could 

maintain excess balances as deposits 

with their correspondent or, 

alternatively, could instruct their 

correspondent to sweep their deposits 

into overnight investments in the 

federal funds market.3 Correspondents 

typically preferred the latter because it 

helped to limit the size of their balance 

sheet and boosted their regulatory 

capital ratios. However, when the 

market rate of interest on federal funds 

was below the rate paid by Reserve 

Banks on excess balances, respondents 

had an incentive to shift the investment 

of their surplus funds away from the 

sales of federal funds (through their 

correspondents) and toward holding 

those funds directly as excess balances 

with the Reserve Banks, potentially 

disrupting established correspondentrespondent relationships.4

The Board authorized the creation of 

excess balance accounts (EBAs) on May 

20, 2009, to alleviate these pressures on 

correspondent-respondent business 

relationships associated with an 

environment in which federal funds 


ddrumheller on DSK120RN23PROD with NOTICES1