Transmittal Archive

The Board amended Regulation D (Reserve Requirements of Depository Institutions) to reflect the annual indexing of the reserve requirement exemption amount and the low reserve tranche for 2023. More... The annual indexation of these amounts is required notwithstanding the Board’s action in March 2020 setting all reserve requirement ratios to zero. The Regulation D amendments set the reserve requirement exemption amount for 2023 at $36.1 million (increased from $32.4 million in 2022) and the amount of the low reserve tranche at $691.7 million (increased from $640.6 million in 2022). The adjustments to both of these amounts are derived using statutory formulas specified in the Federal Reserve Act. The annual indexation of the reserve requirement exemption amount and low reserve tranche, though required by statute, will not affect depository institutions’ reserve requirements, which will remain zero. The final rule is effective January 3, 2023 (Regulation D, Docket R-1791) and was published in the Federal Register on December 1, 2022. The new low reserve tranche and reserve requirement exemption amount will apply beginning January 1, 2023.

The Board issued a final rule that applies an inflation adjustment to the threshold for total consolidated assets in Regulation I. More... Federal 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. Based on the change in the Gross Domestic Product Price Index as of September 29, 2022, the total consolidated asset threshold will be $12,124,000,000 through December 31, 2023. The final rule is effective January 3, 2023 (Regulation I, Docket R-1792) and was published in the Federal Register on December 1, 2022. The adjusted threshold for total consolidated assets will apply beginning January 1, 2023.

The Board and the Consumer Financial Protection Bureau (CFPB) finalized amendments to the official interpretations and commentary for the agencies’ regulations that implement the Consumer Leasing Act (CLA). More... 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, 2022, the exemption threshold will increase from $61,000 to $66,400. The final rule is effective January 1, 2023 (Regulation M and Consumer Financial Protection Bureau, Regulation M, Docket R-1783) and was published in the Federal Register on October 20, 2022.

The Board, the CFPB, and the Office of the Comptroller of the Currency (OCC) finalized amendments to the official interpretations for their regulations that implement section 129H of the Truth in Lending Act (TILA). More... Section 129H of TILA establishes special appraisal requirements for “higher-risk mortgages,” termed “higher-priced mortgage loans” or HPMLs in the agencies’ regulations. The Board, the CFPB, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the National Credit Union Administration, and the OCC jointly issued final rules implementing these requirements, effective January 18, 2014. The agencies’ rules exempted, among other loan types, transactions of $25,000 or less, and required that this loan amount be adjusted annually based on any annual percentage increase in the CPI-W. If there is no annual percentage increase in the CPI-W, the Board, the CFPB, and the OCC 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 increase 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 CPI-W in effect as of June 1, 2022, the exemption threshold will increase from $28,500 to $31,000. The final rule is effective January 1, 2023 (Regulation Z and Consumer Financial Protection Bureau, Regulation Z, Docket R-1785) and was published in the Federal Register on October 20, 2022.

The Board and the CFPB are amending the official interpretations and commentary for the agencies’ regulations that implement TILA. More... The Dodd-Frank Act amended TILA by requiring that the dollar threshold for exempt consumer credit transactions be adjusted annually by the annual percentage increase in the CPI-W. Under regulations adopted by the agencies, if there is no annual percentage increase in the CPI-W, the Board and the CFPB 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, 2022, the exemption threshold will increase from $61,000 to $66,400. The final rule is effective January 1, 2023 (Regulation Z and Consumer Financial Protection Bureau, Regulation Z, Docket R-1784) and was published in the Federal Register on October 20, 2022.

The CFPB is amending Regulation V, which implements the Fair Credit Reporting Act (FCRA). More... The CFPB is required to calculate annually the dollar amount of the maximum allowable charge for disclosures by a consumer reporting agency to a consumer pursuant to section 609 of the FCRA (15 U.S.C. 1681g); this final rule establishes the maximum allowable charge for the 2023 calendar year. The final rule is effective January 1, 2023 (Consumer Financial Protection Bureau, Regulation V) and was published in the Federal Register on November 25, 2022.

The Board is requesting comment on draft principles that would provide a high-level framework for the safe and sound management of exposures to climate-related financial risks for Board-supervised financial institutions with over $100 billion in assets. More... Although all financial institutions, regardless of size, may have material exposures to climate-related financial risks, these principles are intended for the largest financial institutions, i.e., those with over $100 billion in total consolidated assets. The draft principles are intended to support efforts by large financial institutions to focus on key aspects of climate-related financial risk management. Comments on the draft principles must be received by February 6, 2023 (Docket OP-1793).