Fed adopts final rule to streamline reporting requirements for bank reporting of reserve bank stock subscriptions

Referring to it as a “technical rule,” the Federal Reserve late Monday publicly released details of action designed to streamline reporting requirements for member banks related to their subscriptions to reserve bank capital stock.

The rule takes effect 30 days after publication in the Federal Register, the Fed said.

According to a release, the Fed said the final rule (which, it noted, is “substantially similar to the proposal”) amends Regulation I (Issue and Cancellation of Federal Reserve Bank Capital Stock) to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to Federal Reserve Bank capital stock, except in the context of mergers.

The Fed said it has developed software that can automatically extract information from bank quarterly call reports that is required to calculate and automatically adjust a member bank’s stock subscription.

The banking industry said the move will significantly reduce the annual reporting burden on banks.

Federal Reserve Board finalizes technical rule that will streamline reporting requirements for member banks related to their subscriptions to Federal Reserve Bank capital stock

Be the first to comment

Leave a Reply

Your email address will not be published.