What’s New

The Board, the California Department of Financial Protection and Innovation, the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration, and the Office of the Comptroller of the Currency recognize the serious impact of the California wildfires and straight-line winds on the customers and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision. More... The agencies encourage institutions operating in the affected areas to meet the financial services needs of their communities. For more information, see the press release and related information on the Board’s website: https://www.federalreserve.gov/newsevents/pressreleases/other20250114a.htm.

The Board has adopted final amendments to its Regulation A to reflect the Board’s approval of a decrease in the rate for primary credit at each Federal Reserve Bank. More... The secondary credit rate at each Reserve Bank automatically decreased by formula as a result of the Board’s primary credit rate action. The final rule is effective January 15, 2025 (Regulation A, Docket R–1862), the same day it was published in the Federal Register. The rate changes for primary and secondary credit were applicable on December 19, 2024.

The Board is amending Regulation D (Reserve Requirements of Depository Institutions) to revise the rate of interest paid on balances (IORB) maintained at Federal Reserve Banks by or on behalf of eligible institutions. More... The final amendments specify that IORB is 4.4 percent, a 0.25 percentage point decrease from its prior level. The amendment is intended to enhance the role of IORB in maintaining the federal funds rate in the target range established by the Federal Open Market Committee. The final rule is effective January 15, 2025 (Regulation D, Docket R–1863), the same day it was published in the Federal Register. The IORB rate change was applicable on December 19, 2024.

Under their Community Reinvestment Act (CRA) regulations, the Board and the FDIC annually adjust the asset-size thresholds used to define “small bank” and “intermediate small bank.” More... As required by the CRA regulations, the adjustment to the threshold amounts is based on the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI–W). Applying this annual inflation adjustment methodology, the agencies announced that, from January 1, 2025, through December 31, 2025, “small bank” will mean a bank that, as of December 31 of either of the prior two calendar years, had assets of less than $1.609 billion; and “intermediate small bank” will mean a small bank with assets of at least $402 million as of December 31 of both of the prior two calendar years and less than $1.609 billion as of December 31 of either of the prior two calendar years. These asset-size thresholds are in effect from January 1, 2025, through December 31, 2025 (Regulation BB) and were published in the Federal Register on December 30, 2024.

The Consumer Financial Protection Bureau (CFPB) amended the official commentary that interprets the requirements of Regulation C (Home Mortgage Disclosure) to reflect the asset-size exemption threshold for banks, savings associations, and credit unions based on the annual percentage change in the average of the CPI–W. More... Based on the 2.9 percent increase in the average of the CPI–W for the 12-month period ending in November 2024, the exemption threshold is adjusted to $58 million from $56 million. Institutions with assets of $58 million or less as of December 31, 2024, are exempt from collecting data in 2025. The final rule is effective January 1, 2025 (Consumer Financial Protection Bureau, Regulation C) and was published in the Federal Register on December 27, 2024.

The CFPB amended the official commentary to its Regulation Z in order to make annual adjustments to the asset-size thresholds exempting certain creditors from the requirement to establish an escrow account for a higher-priced mortgage loan. More... The exemption threshold for creditors and their affiliates that regularly extended covered transactions secured by first liens is adjusted to $2.717 billion and the exemption threshold for certain insured depository institutions and insured credit unions with assets of $10 billion or less is adjusted to $12.179 billion. The final rule is effective January 1, 2025 (Consumer Financial Protection Bureau, Regulation Z) and was published in the Federal Register on December 23, 2024.

The Board issued a final rule amending its rules of practice and procedure to adjust the amount of each civil money penalty provided by law within its jurisdiction to account for inflation as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. More... The final rule is effective January 13, 2025 (Procedural and Organizational Rules, Rules of Practice for Hearings, Docket R–1864), the same day it was published in the Federal Register.

Pursuant to the provisions of the Privacy Act of 1974, notice was given that the Board proposes to modify existing system of records, BGFRS–25 “FRB—Multi-Rater Feedback Records.” More... This system of records, which will now be called “FRB—360 Assessment Records,” includes 360 Assessment questionnaires completed by the employee being evaluated and his or her evaluators, analyses of the questionnaires, and associated feedback reports. The modified system of records is effective January 9, 2025, without further notice, unless comments dictate otherwise (Rules Regarding Access to Personal Information under the Privacy Act of 1974, Systems of Records of the Federal Reserve System). The modified system of records was published in the Federal Register on December 10, 2024.