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Federal Reserve Board Issues Final Rule Regarding Dividend Payments On Reserve Bank Capital Stock

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The Federal Reserve Board on Wednesday issued a final rule that amends Regulation I to implement provisions of the Fixing America's Surface Transportation (FAST) Act. The final rule is the same as the interim final rule the Board issued in February. The FAST Act reduced the dividend rate applicable to Reserve Bank depository institution stockholders with total assets of more than $10 billion (large member banks) to the lesser of 6 percent or the most recent 10-year Treasury auction rate prior to the dividend payment. The dividend rate for other member banks remains at 6 percent. Reserve Banks typically pay dividends to member banks in June and December each year.

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