Reducing Regulatory Burden on Community Banks

The Federal Reserve has made considerable efforts to reduce regulatory burden through streamlining reporting efforts and adapting examinations during the pandemic. In the spirit of this goal, the Reserve Banks have developed an automated process for member banks’ reporting of non-merger-related adjustments to their subscriptions to Reserve Bank capital stock by utilizing filed Call Reports. Prior to this change, member banks were required by Regulation I to manually apply for adjustments annually and, in many cases, quarterly.

The new process went into effect in February and will automatically pull the information needed to calculate required capital stock directly from the institution’s Call Reports. The Reserve Bank will then debit or credit the institution’s reserve account to make any necessary adjustments.

Remember, the 6% dividend on Reserve Bank stock is just one way that we show we value our member banks.

Please reach out to your Supervisory Central Point of Contact for any questions.

Review the press release for more details.