In a move that will significantly reduce the annual reporting burden on banks, the Federal Reserve today finalized a rule to automate non-merger-related adjustments to member banks’ subscriptions to reserve bank capital stock. The Fed noted that it has developed software that can automatically pull the information required for the calculation and automatically adjust a member bank’s stock subscription with each Call Report filed.
In addition, the Fed codified its existing practices of requiring a surviving member bank to apply to adjust its stock subscription before merging or consolidating with another bank, and made technical amendments to Reg I and the corresponding FR 2056 reporting form. The final rule will take effect 30 days after publication in the Federal Register.
