On Nov. 12, Fed made Reg I asset-size threshold annual adjustment.
Fed final rule made annual inflation adjustment to the asset-size threshold (AST) in Regulation I that determines dividend rate paid to banks that are members of the Fed.
Adjusted Threshold
Total consolidated asset threshold will be $12,841,000,000 through Dec. 31, 2025.
Based on change in the gross domestic product price index as of Sep. 26, 2024.
Fed must annually adjust the AST to reflect the change in the US gross domestic product price index, published by the Bureau of Economic Analysis, under 12 CFR 209.
Reserve Bank stockholders with total consolidated assets above threshold receive different dividend rate on their stock than stockholders with assets at/below threshold.
Effectiveness
Final rule is effective Dec. 12, 2024; adjusted threshold applies beginning Jan. 1, 2025
