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 2024. 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 reserve requirement exemption amount for 2024 will remain at $36.1 million, unchanged from 2023, consistent with the Federal Reserve Act. The Board amended Regulation D to set the amount of the low reserve tranche at $644.0 million (decreased from $691.7 million in 2023). The adjustment to the low reserve tranche is derived using a statutory formula specified in the Federal Reserve Act. The annual indexation of the reserve requirement exemption amount and low reserve tranche is required by statute but will not affect depository institutions’ reserve requirements, which will remain zero. The final rule is effective December 29, 2023 (Regulation D, Docket R–1823) and was published in the Federal Register on November 29, 2023. The new low reserve tranche will apply beginning January 1, 2024.

The Board issued a final rule that applies an inflation adjustment to the threshold for total consolidated assets in Regulation I. 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. More... 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 28, 2023, the total consolidated asset threshold will be $12,517,000,000 through December 31, 2024. The final rule is effective December 29, 2023 (Regulation I, Docket R–1824) and was published in the Federal Register on November 29, 2023. The adjusted threshold for total consolidated assets will apply beginning January 1, 2024.

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a final rule requiring certain entities to file with FinCEN reports that identify two categories of individuals: the beneficial owners of the entity, and individuals who have filed an application with specified governmental authorities to create the entity or register it to do business. More... These regulations implement section 6403 of the Corporate Transparency Act (CTA), enacted into law as part of the National Defense Authorization Act for Fiscal Year 2021 (NDAA), and describe who must file a report, what information must be provided, and when a report is due. These requirements are intended to help prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activity, while minimizing the burden on entities doing business in the United States. The final rule is effective January 1, 2024 (Department of the Treasury, Financial Crimes Enforcement Network) and was published in the Federal Register on September 30, 2022.

FinCEN issued a final rule to specify when and how entities required to report beneficial ownership information to FinCEN may use a FinCEN identifier to report the beneficial ownership information of certain related entities. More... These regulations amend FinCEN’s Beneficial Ownership Information Reporting Rule, which implements section 6403 of the CTA. The CTA was enacted into law as part of the Anti-Money Laundering Act of 2020, which is itself part of the NDAA. The final rule is effective January 1, 2024 (Department of the Treasury, Financial Crimes Enforcement Network) and was published in the Federal Register on November 8, 2023.

FinCEN is amending the Beneficial Ownership Information Reporting Rule to extend the filing deadline for certain beneficial ownership information (BOI) reports. More... Under the reporting rule prior to this amendment, entities created or registered on or after the rule’s effective date of January 1, 2024, had to file initial BOI reports with FinCEN within 30 calendar days of notice of their creation or registration. This amendment extends that filing deadline from 30 calendar days to 90 calendar days for entities created or registered on or after January 1, 2024, and before January 1, 2025, to give those entities additional time to understand the new reporting obligation and collect the necessary information to complete their filings. Entities created or registered on or after January 1, 2025, will continue to have 30 calendar days to file their BOI reports with FinCEN. The final rule is effective January 1, 2024 (Department of the Treasury, Financial Crimes Enforcement Network) and was published in the Federal Register on November 30, 2023.

The Board is adopting risk-based capital requirements for depository institution holding companies that are significantly engaged in insurance activities. More... This risk-based capital framework, termed the Building Block Approach, adjusts and aggregates existing legal entity capital requirements to determine enterprise-wide capital requirements. The final rule also contains a risk-based capital requirement excluding insurance activities, in compliance with section 171 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The Board also is adopting a reporting form FR Q-1 related to the Building Block Approach. The capital requirements and associated reporting form meet statutory mandates and will help to prevent the economic and consumer impacts resulting from the failure of organizations engaged in banking and insurance. The final rule is effective January 1, 2024 (Regulation Q, Regulation LL, and Regulation YY, Docket R–1673) and was published in the Federal Register on November 27, 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 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. The final rule is effective January 1, 2024 (Regulation M and Consumer Financial Protection Bureau, Regulation M, Docket R–1821) and was published in the Federal Register on November 29, 2023.

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 (FDIC), 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, 2023, the exemption threshold will increase from $31,000 to $32,400. The final rule is effective January 1, 2024 (Regulation Z and Consumer Financial Protection Bureau, Regulation Z, Docket R–1819) and was published in the Federal Register on November 29, 2023.

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, 2023, the exemption threshold will increase from $66,400 to $69,500. The final rule is effective January 1, 2024 (Regulation Z and Consumer Financial Protection Bureau, Regulation Z, Docket R–1820) and was published in the Federal Register on November 29, 2023.

The CFPB is amending the regulation text and official interpretations for Regulation Z, which implements TILA. More... The CFPB calculates the dollar amounts for several provisions in Regulation Z annually; this final rule revises, as applicable, the dollar amounts for provisions implementing TILA and amendments to TILA, including under the Home Ownership and Equity Protection Act of 1994 (HOEPA), and the Dodd-Frank Act. The CFPB is adjusting these amounts, where appropriate, based on the annual percentage change reflected in the Consumer Price Index in effect on June 1, 2023. The final rule is effective January 1, 2024 (Consumer Financial Protection Bureau, Regulation Z) and was published in the Federal Register on September 21, 2023.

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 2024 calendar year. The final rule is effective January 1, 2024 (Consumer Financial Protection Bureau, Regulation V) and was published in the Federal Register on November 15, 2023.

The Board is revising its Rules Regarding Delegation of Authority to add delegations of authority previously approved by the Board and make certain technical corrections. More... The final rule is effective November 17, 2023 (Rules Regarding Delegation of Authority, Docket R–1778), the same day it was published in the Federal Register.

On September 19, 2023, the Board, the FDIC, and the OCC published in the Federal Register a proposal to require certain large depository institution holding companies, U.S. intermediate holding companies of foreign banking organizations, and insured depository institutions to issue and maintain outstanding a minimum amount of long-term debt. More... The agencies have determined that an extension of the comment period is appropriate. Comments on this notice of proposed rulemaking must be received by January 16, 2024 (Docket R–1815).

Regulation II implements a provision of the Dodd-Frank Act that requires the Board to establish standards for assessing whether the amount of any interchange fee received by a debit card issuer is reasonable and proportional to the cost incurred by the issuer with respect to the transaction. More... Under the current rule, for a debit card transaction that does not qualify for a statutory exemption, the interchange fee can be no more than the sum of a base component of 21 cents, an ad valorem component of 5 basis points multiplied by the value of the transaction, and a fraud-prevention adjustment of 1 cent if the issuer meets certain fraud-prevention-standards. The Board developed the current interchange fee cap in 2011 using data voluntarily reported to the Board by large debit card issuers concerning transactions performed in 2009. Since that time, data collected by the Board every other year on a mandatory basis from large debit card issuers show that certain costs incurred by these issuers have declined significantly; however, the interchange fee cap has remained the same. For this reason, the Board proposes to update all three components of the interchange fee cap based on the latest data reported to the Board by large debit card issuers. Further, the Board proposes to update the interchange fee cap every other year going forward by directly linking the interchange fee cap to data from the Board’s biennial survey of large debit card issuers. Initially, under the proposal, the base component would be 14.4 cents, the ad valorem component would be 4.0 basis points (multiplied by the value of the transaction), and the fraud-prevention adjustment would be 1.3 cents for debit card transactions performed from the effective date of the final rule to June 30, 2025. The Board also proposes a set of technical revisions to Regulation II. Comments on this notice of proposed rulemaking must be received by February 12, 2024 (Docket R–1818).