[Federal Register Volume 65, Number 48 (Friday, March 10, 2000)]
[Rules and Regulations]
[Pages 12916-12917]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-5861]


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FEDERAL RESERVE SYSTEM

12 CFR Part 204

[Regulation D; Docket No. R-1061]


Reserve Requirements of Depository Institutions

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Interpretation.

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SUMMARY: The Board is amending an interpretation of Regulation D 
(Reserve Requirements of Depository Institutions) to include the 
European Central Bank among the institutions that have been

[[Page 12917]]

specifically designated by the Board as ``supranational'' entities for 
purposes of certain time deposits under Regulation D.

EFFECTIVE DATE: March 10, 2000.

FOR FURTHER INFORMATION CONTACT: Oliver I. Ireland, Associate General 
Counsel (202/452-3625), or Alison MacDonald, Senior Attorney (202/452-
3236), Legal Division, Board of Governors of the Federal Reserve 
System. For the hearing impaired only, Telecommunications Device for 
the Deaf (TDD), Janice Simms (202/872-4984).

SUPPLEMENTARY INFORMATION: Regulation D (12 CFR part 204) defines those 
deposits against which depository institutions must maintain reserve 
balances with a Federal Reserve Bank and sets ratios for those 
reserves. The regulation imposes a marginal reserve requirement of 10 
percent against transaction accounts but exempts international banking 
facility (``IBF'') time deposits from the reserve requirements and 
imposes a 0 percent reserve ratio on nonpersonal time deposits. 
Promissory notes and other obligations issued to ``[a]ny * * * foreign, 
international, or supranational entity specifically designated by the 
Board'' are nonpersonal time deposits and may be IBF time deposits 
under relevant sections of Regulation D regardless of their maturity 
(12 CFR 204.2(c)).
    Consistent with its designation of other multi-national, regional 
central banks and other European Community entities as 
``supranational'' entities, the Board has designated the European 
Central Bank a ``supranational'' entity for purposes of Regulation D 
and, thus, is revising Sec. 204.125 to include the European Central 
Bank. Accordingly, depository institutions receiving deposits from the 
European Central Bank that comply with the requirements of 
Secs. 204.2(c)(1)(iv)(E) and 204.8(a)(2)(i)(B)(5) of Regulation D do 
not need to hold reserves against European Central Bank deposits under 
the regulation.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612) requires an 
agency to publish a regulatory flexibility analysis for any final rule 
for which the agency was required to publish a general notice of 
proposed rulemaking. Under 12 U.S.C. 553(b), a general notice of 
proposed rulemaking is not required for interpretive rules. 
Accordingly, no regulatory flexibility analysis is required in this 
case.
    Under 12 U.S.C. 553(d), a 30-day period between publication date 
and effective date is not required for interpretive rules. Accordingly, 
this interpretation is effective on the date of publication in the 
Federal Register.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act Notice of 1995 (44 
U.S.C. ch. 3506; 5 CFR Part 1320, Appendix A.1), the Board has reviewed 
the rule under authority delegated to the Board by the Office of 
Management and Budget. No collections of information pursuant to the 
Paperwork Reduction Act are contained in the rule.

List of Subjects 12 CFR Part 204

    Banks, banking, Federal Reserve System, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, the Board is amending 
part 204 in chapter II of title 12 of the Code of Federal Regulations 
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), 371a, 461, 601, 611, and 
3105.


    2. Section 204.125 is amended as follows:
    a. In the introductory text, ``Secs. 204.2(c)(1)(E)'' is removed 
and ``Secs. 204.2(c)(1)(iv)(E)'' is added in its place;
    b. In the listing under Europe, a new entry is added in 
alphabetical order, to read as follows:


Sec. 204.125  Foreign, international, and supranational entities 
referred to in Secs. 204.2(c)(1)(iv)(E) and 204.8(a)(2)(i)(B)(5).

* * * * *
Europe
* * * * *
    European Central Bank.
* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, March 6, 2000.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 00-5861 Filed 3-9-00; 8:45 am]
BILLING CODE 6210-01-P