51754 Federal Register / Vol. 82, No. 215 / Wednesday, November 8, 2017 / Rules and Regulations 

1Consistent with Board practice, the low reserve 

tranche and reserve requirement exemption 

amounts have been rounded to the nearest $0.1 

million. 

the OIG to another agency for law 

enforcement purposes. 

* * * * * 

Dated: November 3, 2017. 

Susan A. Poling, 

General Counsel, Government Accountability 

Office. 

[FR Doc. 2017–24340 Filed 11–7–17; 8:45 am] 

BILLING CODE 1610–02–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 204 

Regulation D; Docket No. OP–1582; 

Reserve Requirements of Depository 

Institutions 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Final rule. 

SUMMARY: 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 2018. 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 2018 at $16.0 million 

(up from $15.5 million in 2017). 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 2018 at $122.3 million 

(up from $115.1 million in 2017). 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 8, 2017. 

Compliance Dates: The new low 

reserve tranche and reserve requirement 

exemption amount will apply to the 

fourteen-day reserve maintenance 

period that begins January 18, 2018. For 

depository institutions that report 

deposit data weekly, this maintenance 

period corresponds to the fourteen-day 

computation period that begins 

December 19, 2017. For depository 

institutions that report deposit data 

quarterly, this maintenance period 

corresponds to the seven-day 

computation period that begins 

December 19, 2017. 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 2018. 

FOR FURTHER INFORMATION CONTACT: 

Clinton N. Chen, Senior Attorney (202– 

452–3952), Legal Division, or Kristen R. 

Payne, Financial Analyst (202–452– 

2872), 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. 

I. 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 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 by 3.9 

percent, from $7,531 billion to $7,821 

billion, between June 30, 2016, and June 

30, 2017. Accordingly, the Board is 

amending Regulation D to set the 

reserve requirement exemption amount 

for 2018 at $16.0 million, an increase of 

$0.5 million from its level in 2017.1

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 7.8 

percent, from $2,200 billion to $2,372 

billion, between June 30, 2016, and June 

30, 2017. Accordingly, the Board is 

amending Regulation D to set the low 

reserve tranche for net transaction 

accounts for 2018 at $122.3 million, an 

increase of $7.2 million from 2017. 

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 18, 2018. For 

depository institutions that report 

deposit data weekly, this maintenance 

period corresponds to the fourteen-day 

computation period that begins 

December 19, 2017. For depository 

institutions that report deposit data 

quarterly, this maintenance period 

corresponds to the seven-day 

computation period that begins 

December 19, 2017. 

II. Deposit Reports 

Section 11(b)(2) of the Federal 

Reserve Act authorizes the Board to 


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Federal Register / Vol. 82, No. 215 / Wednesday, November 8, 2017 / Rules and Regulations 51755 

2Consistent 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. 

3 5 U.S.C. 603 and 604. 

4 44 U.S.C. 3506; 5 CFR 1320. 

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, 2016, to June 30, 2017, 

total transaction accounts, savings 

deposits, and small time deposits at all 

depository institutions increased 6.1 

percent, from $11,457 billion to $12,157 

billion. Accordingly, the Board is 

increasing the nonexempt deposit cutoff 

level by $21.3 million to $457.5 million 

for 2018 (up from $436.2 million for 

2017). The Board is also increasing the 

reduced reporting limit by $97.2 million 

to $2.086 billion for 2018 (up from 

$1.989 billion in 2017).2

Beginning in 2018, the boundaries of 

the four deposit reporting panels will be 

defined as follows. Those depository 

institutions with net transaction 

accounts over $16.0 million (the reserve 

requirement exemption amount) or with 

total transaction accounts, savings 

deposits, and small time deposits 

greater than or equal to $2.086 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 

$457.5 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 $457.5 million are required to file 

the FR 2900 report each quarter. Those 

depository institutions with net 

transaction accounts less than or equal 

to $16.0 million (the reserve 

requirement exemption amount) and 

with total transaction accounts, savings 

deposits, and small time deposits less 

than $2.086 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 $16.0 million (but with total 

transaction accounts, savings deposits, 

and small time deposits less than $2.086 

billion) are required to file the Annual 

Report of Deposits and Reservable 

Liabilities (FR 2910a) report annually, 

while those with total deposits less than 

or equal to $16.0 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. 

Regulatory Analysis 

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 

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. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

does not apply to a rulemaking where a 

general notice of proposed rulemaking 

is not required.3 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 1995,4 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. 

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 below to net 

transaction accounts, nonpersonal time 

deposits, and Eurocurrency liabilities of 

the institution during the computation 

period. 


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51756 Federal Register / Vol. 82, No. 215 / Wednesday, November 8, 2017 / Rules and Regulations 

Reservable liability Reserve requirement 

Net Transaction Accounts: 

$0 to reserve requirement exemption amount ($16.0 million) .......... 0 percent of amount. 

Over reserve requirement exemption amount ($16.0 million) and 

up to low reserve tranche ($122.3 million).

3 percent of amount. 

Over low reserve tranche ($122.3 million) ........................................ $3,189,000 plus 10 percent of amount over $122.3 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, November 2, 

2017. 

Ann E. Misback, 

Secretary of the Board. 

[FR Doc. 2017–24297 Filed 11–7–17; 8:45 am] 

BILLING CODE 6210–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 71 

[Docket No. FAA–2017–0620; Airspace 

Docket No. 17–ASW–10] 

Establishment Class E Airspace; 

Cisco, TX 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: This action establishes Class 

E airspace extending upward from 700 

feet above the surface at Gregory M. 

Simmons Memorial Airport, Cisco, TX, 

to accommodate a new public 

instrument approach procedure at the 

airport and for safety and management 

of instrument flight rules (IFR) 

operations at the airport. Also, a 

correction is made to the airport name 

in the regulatory text. 

DATES: Effective 0901 UTC, February 1, 

2018. The Director of the Federal 

Register approves this incorporation by 

reference action under Title 1, Code of 

Federal Regulations, part 51, subject to 

the annual revision of FAA Order 

7400.11 and publication of conforming 

amendments. 

ADDRESSES: FAA Order 7400.11B, 

Airspace Designations and Reporting 

Points, and subsequent amendments can 

be viewed online at http://www.faa.gov/ 

air_traffic/publications/. For further 

information, you can contact the 

Airspace Policy Group, Federal Aviation 

Administration, 800 Independence 

Avenue SW., Washington, DC 20591; 

telephone: (202) 267–8783. The Order is 

also available for inspection at the 

National Archives and Records 

Administration (NARA). For 

information on the availability of FAA 

Order 7400.11B at NARA, call (202) 

741–6030, or go to https://

www.archives.gov/federal-register/cfr/ 

ibr-locations.html. 

FAA Order 7400.11, Airspace 

Designations and Reporting Points, is 

published yearly and effective on 

September 15. 

FOR FURTHER INFORMATION CONTACT: 

Jeffrey Claypool, Federal Aviation 

Administration, Operations Support 

Group, Central Service Center, 10101 

Hillwood Parkway, Fort Worth, TX 

76177; telephone (817) 222–5711. 

SUPPLEMENTARY INFORMATION: 

Authority for This Rulemaking 

The FAA’s authority to issue rules 

regarding aviation safety is found in 

Title 49 of the United States Code. 

Subtitle I, Section 106 describes the 

authority of the FAA Administrator. 

Subtitle VII, Aviation Programs, 

describes in more detail the scope of the 

agency’s authority. This rulemaking is 

promulgated under the authority 

described in Subtitle VII, Part A, 

Subpart I, Section 40103. Under that 

section, the FAA is charged with 

prescribing regulations to assign the use 

of airspace necessary to ensure the 

safety of aircraft and the efficient use of 

airspace. This regulation is within the 

scope of that authority as it establishes 

Class E airspace extending upward from 

700 feet above the surface at Gregory M. 

Simmons Memorial Airport, Cisco, TX, 

to support IFR operations at this airport. 

History 

On August 1, 2017, the FAA 

published in the Federal Register (82 

FR 35716) Docket No. FAA–2017–0620, 

a notice of proposed rulemaking 

(NPRM) to establish Class E airspace 

extending upward from 700 feet above 

the surface at Gregory M. Simmons 

Memorial Airport, Cisco, TX, to support 

the new public instrument approach 

procedure and enhance the safety and 

management of IFR operations at this 

airport. Interested parties were invited 

to participate in this rulemaking effort 

by submitting written comments on the 

proposal to the FAA. No comments 

were received. 

Subsequent to publication, the FAA 

discovered that ‘‘Memorial’’ was 

inadvertently omitted from the airport 

name in the regulatory text of the NPRM 

and is corrected in this action. 

Except for the edit noted above, this 

rule is the same as published in the 

NPRM. 

Class E airspace designations are 

published in paragraph 6005 of FAA 

Order 7400.11B, dated August 3, 2017, 

and effective September 15, 2017, which 

is incorporated by reference in 14 CFR 

71.1. The Class E airspace designations 

listed in this document will be 

published subsequently in the Order. 

Availability and Summary of 

Documents for Incorporation by 

Reference 

This document amends FAA Order 

7400.11B, Airspace Designations and 

Reporting Points, dated August 3, 2017, 

and effective September 15, 2017. FAA 

Order 7400.11B is publicly available as 

listed in the ADDRESSES section of this 

document. FAA Order 7400.11B lists 

Class A, B, C, D, and E airspace areas, 

air traffic service routes, and reporting 

points. 

The Rule 

This amendment to Title 14, Code of 

Federal Regulations (14 CFR) part 71 

establishes Class E airspace extending 

upward from 700 feet above the surface 

within a 6.6-mile radius of Gregory M. 

Simmons Memorial Airport, Cisco, TX, 

due to the establishment of a new public 

instrument approach procedure at the 

airport. Controlled airspace is necessary 

for the safety and management of 

instrument approach procedures for IFR 

operations at the airport. The airport 

name is corrected to Gregory M. 

Simmons Memorial Airport, from 

Gregory M. Simmons Airport, as set 

forth in the regulatory text of the NPRM. 

Regulatory Notices and Analyses 

The FAA has determined that this 

regulation only involves an established 

body of technical regulations for which 

frequent and routine amendments are 

necessary to keep them operationally 

current, is non-controversial and 

unlikely to result in adverse or negative 

comments. It, therefore: (1) Is not a 


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