Fed Makes Annual Adjustment to Asset Threshold for Dividend Cut

The Federal Reserve today made an annual inflation adjustment to the asset threshold in Regulation I that determines the dividend rate that certain member banks earn on Federal Reserve Bank stock, as required by the 2015 transportation spending bill. The threshold for 2020 is now set at $10.715 billion in assets.

The controversial bill chopped the dividend paid to banks with more than $10 billion in assets from an annual rate of 6 percent to the latest high yield on 10-year Treasurys. Dividends for banks with assets of less than $10 billion were not affected.