Record of Policy Actions of the Board of Governors

Policy actions of the Board of Governors are presented pursuant to section 10 of the Federal Reserve Act. That section provides that the Board shall keep a record of all questions of policy determined by the Board and shall include in its annual report to Congress a full account of such actions. This appendix provides a summary of policy actions in 2020, including actions taken to support market functioning and the flow of credit to the economy following the outbreak of the coronavirus pandemic and associated containment measures (the COVID event). Policy actions were implemented through (1) rules and regulations, (2) policy statements and other actions, (3) special facilities, and (4) discount rates for depository institutions. More information on the actions is available from the relevant Federal Register notices or other documents (see links in footnotes) or on request from the Board's Freedom of Information Office. This appendix also provides information on the Board and the Government Performance and Results Act.

For information on the Federal Open Market Committee's policy actions relating to open market operations, see appendix B, "Minutes of Federal Open Market Committee Meetings."

Rules and Regulations

Regulation D (Reserve Requirements of Depository Institutions)

Effective March 24, 2020 (changes to reserve requirement ratios applicable on March 26, 2020). On March 15, 2020, the Board approved an interim final rule and request for comment (Docket No. R-1702) to lower reserve ratios on transaction accounts maintained at depository institutions to 0 percent.¹ In January 2019, the Federal Open Market Committee (FOMC) announced its intention to implement an ample-reserves regime. Reserve requirements do not play a significant role in this operating framework. The interim final rule eliminates reserve requirements for thousands of depository institutions and helps to support lending to households and businesses.

Effective April 24, 2020. On April 23, 2020, the Board approved an interim final rule and request for comment (Docket No. R-1715) to delete the six-per-month limit on convenient transfers and withdrawals that may be made from "savings deposits."² Regulation D distinguishes between reservable "transaction accounts" and non-reservable "savings deposits" based on the ease with which the depositor may make transfers or withdrawals from the account. Effective March 26, 2020, reserve requirement ratios were reduced to 0 percent, thus eliminating reserve requirements for thousands of depository institutions and rendering the regulatory distinction between the two types of accounts unnecessary. The interim final rule permits, but does not require, depository institutions to allow their customers to make an unlimited number of convenient transfers and withdrawals from their savings deposits at a time when financial events associated with the COVID event have made such access more urgent.

Effective March 12, 2021. On December 21, 2020, the Board approved a final rule (Docket No. R-1702) to adopt without change the interim final rule approved on March 15, 2020, to lower reserve requirement ratios on transaction accounts maintained at depository institutions to 0 percent.³

Regulations H (Membership of State Banking Institutions in the Federal Reserve System) and Q (Capital Adequacy of Bank Holding Companies, Savings and Loan Holding Companies, and State Member Banks)

Effective June 1, 2020. On May 15, 2020, the Board approved an interim final rule and request for comment (Docket No. R-1718), issued jointly with the Federal Deposit Insurance Corporation (FDIC) and Office of the Comptroller of the Currency (OCC) (together with the Board, "the agencies"), to temporarily revise the supplementary leverage ratio (SLR) calculation for depository institutions, in light of disruptions in economic conditions caused by the COVID event.⁴ Under the interim final rule, depository institutions may choose to exclude U.S. Treasury securities and deposits at Federal Reserve Banks from the SLR calculation through the first quarter of 2021. If a depository institution does change its SLR calculation, it will be required to request approval from its primary federal banking regulator before making capital distributions, such as paying dividends to its parent company, for as long as the exclusion is in effect.

Regulation O (Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks)

Effective April 22, 2020. On April 17, 2020, the Board approved an interim final rule and request for comment (Docket No. R-1714) to except Paycheck Protection Program (PPP) loans made through June 30, 2020, from requirements limiting the types and quantity of loans that certain bank directors, shareholders, officers, and businesses owned by these persons can receive from their related banks.⁵ To bolster the effectiveness of the Small Business Administration's (SBA's) PPP in light of the COVID event, the interim final rule excepts from the requirements of section 22(h) of the Federal Reserve Act and certain provisions of the Board's Regulation O loans guaranteed under the PPP and not prohibited by the SBA's lending restrictions, subject to certain limits. The interim final rule prohibits a banking organization from favoring, in processing time or prioritization, a PPP application of one of its directors or shareholders.

Effective July 16, 2020. On July 12, 2020, the Board approved an interim final rule and request for comment (Docket No. R-1722) to extend through August 8, 2020, the exception for PPP loans from limits on the types and quantity of loans that certain bank directors, shareholders, officers, and businesses owned by these persons can receive from their related banks.⁶ Note: On February 5, 2021, the Board approved an interim final rule and request for comment (Docket No. R-1740) to extend this exception for PPP loans through March 31, 2021.⁷

Regulation Q (Capital Adequacy of Bank Holding Companies, Savings and Loan Holding Companies, and State Member Banks)

Effective March 20, 2020. On March 17, 2020, the Board approved an interim final rule and request for comment (Docket No. R-1703), issued jointly with the FDIC and OCC, to revise the definition of "eligible retained income" for all depository institutions, bank holding companies, and savings and loan holding companies (together, "banking organizations") subject to the agencies' capital rules.⁸ The interim final rule facilitates the use of banking organizations' capital buffers to promote lending activity to households and businesses, in light of the COVID event. The revised definition of eligible retained income will make any automatic limitations on capital distributions that could apply under the agencies' capital rules more gradual.

Effective March 23, 2020. On March 19, 2020, the Board approved an interim final rule and request for comment (Docket No. R-1705), issued jointly with the FDIC and OCC, to facilitate lending under the Money Market Mutual Fund Liquidity Facility (MMLF).⁹ The Board had authorized the establishment of the MMLF to provide liquidity to the money market sector and help stabilize the financial system in light of the strains on the economy due to the COVID event. The interim final rule allows banking organizations to neutralize the regulatory capital effects of participating in the MMLF. This capital treatment is also extended to the community bank leverage ratio.

Effective March 31, 2020. On March 26, 2020, the Board approved a notice (Docket No. R-1629), issued jointly with the FDIC and OCC, to allow depository institutions and depository institution holding companies to implement the Standardized Approach for Calculating the Exposure Amount of Derivative Contracts (SA-CCR) for the first quarter of 2020, on a best-efforts basis, to help improve market liquidity and smooth disruptions caused by the COVID event.¹⁰ The SA-CCR final rule was finalized by the agencies in November 2019, with an effective date of April 1, 2020.

Effective March 31, 2020. On March 27, 2020, the Board approved an interim final rule and request for comment (Docket No. R-1708), issued jointly with the FDIC and OCC, to delay the estimated impact on regulatory capital of the implementation of the Current Expected Credit Losses (CECL) accounting standard.¹¹ The interim final rule provides banking organizations that implement CECL in 2020 with the option to delay for two years an estimate of CECL's effect on regulatory capital, relative to the incurred loss methodology's effect on regulatory capital, followed by a three-year transition period. The agencies provided this relief to allow such banking organizations to better focus on supporting lending to creditworthy households and businesses in light of disruptions in economic conditions caused by the COVID event, while also maintaining the quality of regulatory capital.

Effective April 14, 2020. On April 1, 2020, the Board approved an interim final rule and request for comment (Docket No. R-1707) to revise, on a temporary basis for bank holding companies (BHCs), savings and loan holding companies (SLHCs), and U.S. intermediate holding companies (IHCs) of foreign banking organizations, the calculation of total leverage exposure, the denominator of the SLR.¹² Under the interim final rule, BHCs, SLHCs, and IHCs may choose to exclude U.S. Treasury securities and deposits at Federal Reserve Banks from the SLR calculation through the first quarter of 2021.

Effective April 23, 2020. On April 3, 2020, the Board approved two interim final rules and requests for comment (Docket Nos. R-1710 and R-1711), issued jointly with the FDIC and OCC, to implement the provision of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) that required the agencies to reduce the community bank leverage ratio (CBLR) temporarily to 8 percent.¹³ Under one of the interim final rules, a qualifying banking organization with a leverage ratio of 8 percent or greater could elect to use the CBLR framework as of the second quarter of 2020 and continuing for the remainder of the year. In addition, the other interim final rule establishes a graduated transition from the temporary 8 percent CBLR back to a 9 percent or greater CBLR by January 1, 2022.

Effective April 13, 2020. On April 8, 2020, the Board approved an interim final rule and request for comment (Docket No. R-1712), issued jointly with the FDIC and OCC, to facilitate lending under the Board's Paycheck Protection Program Liquidity Facility (PPPLF).¹⁴ The Board had established the PPPLF to provide liquidity to small business lenders and the broader credit markets, help stabilize the financial system, and provide economic relief to small businesses. The interim final rule allows banking organizations to neutralize the regulatory capital effects of participating in the PPPLF. In addition, as mandated by the CARES Act, the interim final rule states that loans originated under the SBA's PPP receive a 0 percent risk weight under the agencies' regulatory capital rules.

Effective January 1, 2021. On August 25, 2020, the Board approved a final rule (Docket No. R-1703), issued jointly with the FDIC and OCC, to adopt, without change, the interim final rule approved on March 17, 2020, revising the definition of "eligible retained income" for all banking organizations subject to the agencies' capital rules.¹⁵

Effective September 30, 2020. On August 25, 2020, the Board approved a final rule (Docket No. R-1708), issued jointly with the FDIC and OCC, to delay the estimated impact on regulatory capital of the implementation of the CECL accounting standard.¹⁶ The final rule is consistent with the interim final rule approved on March 27, 2020, but makes certain clarifications and minor adjustments related to the mechanics of the transition and the eligibility criteria for applying the transition.

Effective November 9, 2020. On August 25, 2020, the Board approved a final rule (Docket No. R-1711), issued jointly with the FDIC and OCC, to adopt, without change, the two interim final rules on the CBLR approved on April 3, 2020.¹⁷

Effective December 28, 2020. On September 24, 2020, the Board approved a final rule (Docket Nos. R-1705 and R-1712), issued jointly with the FDIC and OCC, to adopt, without change, the interim final rules approved on March 19 and April 8, 2020.¹⁸ Under the final rule, banking organizations may continue to neutralize the regulatory capital effects of participating in the MMLF and the PPPLF.

Regulations Q (Capital Adequacy of Bank Holding Companies, Savings and Loan Holding Companies, and State Member Banks) and YY (Enhanced Prudential Standards)

Effective April 1, 2021. On October 19, 2020, the Board approved a final rule (Docket No. R-1655), issued jointly with the FDIC and OCC, that applies to the largest banking organizations in order to reduce interconnectedness within the financial system and systemic risks.¹⁹ U.S. global systemically important bank holding companies (G-SIBs) and U.S. intermediate holding companies of foreign G-SIBs are required to issue debt with certain features under the Board's total loss-absorbing capacity (TLAC) rule. To discourage the largest banking organizations from purchasing TLAC debt, the final rule prescribes a more stringent regulatory capital treatment for holdings of TLAC debt. In addition, the final rule makes clarifying changes to the TLAC requirements.

Regulations Q (Capital Adequacy of Bank Holding Companies, Savings and Loan Holding Companies, and State Member Banks), Y (Bank Holding Companies and Change in Bank Control), and YY (Enhanced Prudential Standards)

Effective May 18, 2020. On February 28, 2020, the Board approved a final rule (Docket No. R-1603) to simplify the regulatory capital framework by integrating the capital rule's non-stress capital requirements and the Board's Comprehensive Capital Analysis and Review (CCAR) through the establishment of a stress capital buffer (SCB) requirement, beginning with CCAR 2020.²⁰ Under the final rule, the Board uses the results of its supervisory stress test to establish the size of the SCB component of a firm's capital conservation buffer requirement. A firm that does not maintain capital ratios above its minimums plus its buffer requirements faces restrictions on its capital distributions and discretionary bonus payments. The final rule applies to BHCs and IHCs of foreign banking organizations that have $100 billion or more in total consolidated assets.

Regulation Y (Bank Holding Companies and Change in Bank Control)

Effective April 17 through December 31, 2020. On April 10, 2020, the Board approved an interim final rule and request for comment (Docket No. R-1713), issued jointly with the FDIC and OCC, to temporarily amend the agencies' appraisal regulations to allow the deferral of required real estate-related appraisals and evaluations for up to 120 days after the closing of certain residential or commercial real estate transactions, not including real estate acquisition, development, and construction transactions.²¹ The interim final rule helps banking institutions to expeditiously extend liquidity to households and businesses in light of the strains on the economy due to the COVID event.

Effective October 16 through December 31, 2020. On September 24, 2020, the Board approved a final rule (Docket No. R-1713), issued jointly with the FDIC and OCC, to temporarily amend the agencies' appraisal regulations by deferring appraisal and evaluation requirements for certain real estate-related transactions.²² The final rule is substantially similar to the interim final rule approved on April 10, 2020, but clarifies the meaning of "transactions for the acquisition, development, and construction of real estate" by adopting the definition for "construction, land development, and other land loans" from the existing FFIEC Call Report instructions.

Regulations Y (Bank Holding Companies and Change in Bank Control) and LL (Savings and Loan Holding Companies)

Effective April 1, 2020. On January 30, 2020, the Board approved a final rule (Docket No. R-1662) to standardize and increase the transparency of the Board's control rules for BHCs and SLHCs.²³ Under U.S. banking law, if a company has control over a bank or savings association ("a bank"), it is generally subject to Federal Reserve regulation and supervision. Historically, the Board has decided many questions of control on a case-by-case basis. The final rule establishes a comprehensive public framework that outlines combinations of factors and thresholds that trigger presumptions of control. Under the new framework, key control factors to be considered include a company's equity investment in a bank, the director and employee overlaps between a company and a bank, and the scope of business relationships between a company and a bank.

Effective September 30, 2020. On March 31, 2020, the Board approved a final rule (Docket No. R-1662) to delay by six months the effective date for its revised control framework, in light of dislocations in the U.S. economy from the COVID event.²⁴

Regulation KK (Swaps Margin and Swaps Push-Out)

Final rule effective August 31, 2020; interim final rule effective September 1, 2020. On June 24, 2020, the Board approved a final rule (Docket No. R-1682) and an interim final rule and request for comment (Docket No. R-1721), both issued jointly with the FDIC, OCC, Farm Credit Administration, and Federal Housing Finance Agency.²⁵ The final rule amends the swap margin requirements of the agencies' swap margin rules by allowing certain amendments to legacy swaps, providing exemptions for many inter-affiliate swaps from initial margin requirements, and clarifying the timing for documentation requirements.²⁶ The interim final rule delays the implementation of initial margin requirements for the final two phases of the swap margin rule as a result of the COVID event.

Regulation TT (Supervision and Regulation Assessments of Fees)

Effective January 7, 2021. On November 12, 2020, the Board approved a final rule (Docket No. R-1683) to modify the annual assessment fees for its supervision and regulation of large financial companies, as required by EGRRCPA.²⁷ The final rule raises the minimum threshold for being considered an assessed company from $50 billion to $100 billion in total consolidated assets for BHCs and SLHCs and adjusts the amount charged to assessed companies with total consolidated assets between $100 billion and $250 billion to reflect changes in supervisory and regulatory responsibilities resulting from EGRRCPA.

Regulation VV (Proprietary Trading and Relationships with Covered Funds)

Effective October 1, 2020. On June 25, 2020, the Board approved a final rule (Docket No. R-1694), issued jointly with the FDIC, OCC, Commodity Futures Trading Commission, and Securities and Exchange Commission, amending the agencies' regulations implementing section 13 of the Bank Holding Company Act (commonly known as the Volcker rule).²⁸ The final rule modified certain provisions of the agencies' regulations related to hedge funds and private equity funds to simplify and clarify compliance with the rule, reduce the extraterritorial application of the requirements, and permit certain fund-related investments and activities—including payment, clearing, and settlement activities—that do not present the risks that the Volcker rule was intended to address.

Regulation WW (Liquidity Risk Measurement Standards)

Effective May 6, 2020. On April 30, 2020, the Board approved an interim final rule and request for comment (Docket No. R-1717), issued jointly with the FDIC and OCC, to amend the liquidity coverage ratio (LCR) rule to facilitate banking organizations' participation in the PPPLF and the MMLF.²⁹ The interim final rule facilitates participation in the PPPLF and MMLF by requiring banking organizations to neutralize the LCR impact associated with the non-recourse funding provided by these facilities, thereby ensuring that the effects of the use of these facilities are consistent and predictable under the LCR rule.

Effective December 28, 2020. On September 24, 2020, the Board approved a final rule (Docket No. R-1717), issued jointly with the FDIC and OCC, to adopt as final the amendments to the LCR rule made under an interim final rule approved on April 30, 2020.³⁰ Under the final rule, banking organizations are required to continue to neutralize the LCR effects of participating in the MMLF and PPPLF.

Effective July 1, 2021. On October 20, 2020, the Board approved a final rule (Docket No. R-1537), issued jointly with the FDIC and OCC, to implement a minimum Net Stable Funding Ratio (NSFR) requirement for certain large banking organizations.³¹ Under the final rule, large banking organizations are required to maintain a minimum amount of stable funding to support their assets, commitments, and derivative exposures over a one-year time horizon. The NSFR is designed to reduce the likelihood that disruptions to a banking organization's regular sources of funding would compromise its liquidity position, promote effective liquidity risk management, and support the ability of banking organizations to lend to businesses and households across a range of market conditions.

Regulation YY (Enhanced Prudential Standards)

Effective March 26, 2020. On March 21, 2020, the Board approved an interim final rule and request for comment (Docket No. R-1706) to revise the definition of "eligible retained income" for purposes of the Board's TLAC rule, in light of disruptions in economic conditions and strains in U.S. financial markets caused by the COVID event.³² The revised definition of eligible retained income will make any automatic limitations on capital distributions that could apply under the TLAC rule more gradual.

Effective May 28, 2020. On April 30, 2020, the Board approved a final rule (Docket No. R-1534) to extend by 18 months the initial compliance dates for certain requirements in the Board's single-counterparty credit limit (SCCL) rule applicable to the combined U.S. operations of foreign banks.³³ The SCCL rule allows a foreign banking organization to comply with the counterparty limits applicable to its combined U.S. operations by certifying to the Board that it meets SCCL standards established by its home-country supervisor that are consistent with the large-exposures framework published by the Basel Committee on Banking Supervision. The final rule provides additional time for foreign jurisdictions' implementation of their SCCL standards to become effective.

Effective January 1, 2021. On August 25, 2020, the Board approved a final rule (Docket No. R-1706) to adopt, without change, the interim final rule approved on March 21, 2020, revising the definition of "eligible retained income" for purposes of the Board's TLAC rule.³⁴

Temporary Regulatory Relief for Community Banking Organizations

Effective December 2, 2020. On November 16, 2020, the Board approved an interim final rule and request for comment (Docket No. R-1731), issued jointly with the FDIC and OCC, to provide certain community banking organizations with temporary relief from various requirements in Regulations H, K, L, Q, Y, II, and LL.³⁵ Due to their participation in federal coronavirus response programs (such as the PPP) and other lending to support the U.S. economy, many community banking organizations have experienced rapid and unexpected increases in their sizes, which could subject them to new regulations or reporting requirements. The interim final rule allows national banks, savings associations, state banks, BHCs, SLHCs, and U.S. branches and agencies of foreign banking organizations with under $10 billion in total assets as of December 31, 2019, to use asset data as of that date to determine the applicability of various regulatory asset thresholds during calendar years 2020 and 2021.

Rules Regarding Availability of Information

Effective October 15, 2020. On July 10, 2020, the Board approved a final rule (Docket No. R-1665) to make technical, clarifying updates to its Freedom of Information Act (FOIA) procedures and changes to its rules for the disclosure of confidential supervisory information (CSI), which is supervisory information belonging to the Board that may include proprietary financial institution-specific information.³⁶ The final rule updates the definitions for expedited processing and the different categories of FOIA requesters and amends or clarifies other information to help users more easily navigate the process of filing a FOIA request. While the final rule does not expand or reduce the information that falls within the current definition of CSI, it updates certain outdated and inefficient restrictions governing the disclosure of CSI, for example, by allowing supervised financial institutions to share CSI with all affiliates, rather than only with their parent bank holding companies. In addition, the final rule allows financial institutions to share CSI with service providers without obtaining Reserve Bank approval.

Policy Statements and Other Actions

Determination on Investments in "Elevated Poverty Areas" as Public Welfare Investments

On February 21, 2020, the Board determined that certain investments made by a state member bank in an elevated poverty area where the poverty rate is 20 percent or higher, if the area is considered a low- or moderate-income (LMI) area and the investments are targeted toward LMI persons or small businesses, are investments "designed primarily to promote the public welfare," within the meaning of section 9(23) of the Federal Reserve Act and section 208.22 of the Board's Regulation H, provided all other statutory and regulatory criteria are met.³⁷

Appeals of Material Supervisory Determinations and Role of the Ombudsman

Effective April 1, 2020. On March 2, 2020, the Board approved a final policy statement (Docket No. OP-1696) on appeals of material supervisory determinations and the functions of the Ombudsman for the Federal Reserve System.³⁸ The final policy improves and expedites the internal appeals process for institutions, particularly institutions in troubled condition, wishing to appeal an adverse material supervisory determination. The final policy also formalizes many of the current practices of the Ombudsman, including the receipt of supervisory-related complaints and material supervisory determination appeals, and clarifies certain aspects of the Ombudsman's role.

Credit Losses and Credit Risk Review Systems

On March 13, 2020, the Board approved a final Interagency Policy Statement on Allowances for Credit Losses (Docket No. OP-1680) and final Interagency Guidance on Credit Risk Review Systems (Docket No. OP-1679).³⁹ The policy statement and the interagency guidance were issued jointly with the FDIC, OCC, and National Credit Union Administration. The policy statement promotes consistency in the interpretation and application of the Financial Accounting Standards Board's credit losses accounting standard, which introduces the CECL methodology. The policy statement describes the measurement of expected credit losses using the CECL methodology and updates concepts and practices detailed in existing supervisory guidance that remain applicable. The interagency guidance presents principles for establishing a system of independent, ongoing credit risk reviews in accordance with safety and soundness standards.

Section 23A of the Federal Reserve Act and Regulation W (Transactions between Member Banks and Their Affiliates)

On March 17, 2020, the Board approved a policy to temporarily provide exemptions from the requirements of section 23A of the Federal Reserve Act and the Board's Regulation W, in light of significant volatility in financial markets as a result of the COVID event.⁴⁰ The temporary policy permitted certain banks to purchase certain assets from their affiliated money market mutual funds, subject to conditions and limitations, to enable the funds to meet their contractual obligations and avoid further market stress. The exemptions issued pursuant to the policy expired six months from the date of issuance.

On March 18, 2020, the Board approved a policy to temporarily provide exemptions from the requirements of section 23A of the Federal Reserve Act and the Board's Regulation W, in light of the COVID event.⁴¹ The temporary policy permitted certain banks to purchase certain assets from their affiliated broker-dealers, subject to conditions and limitations, to help stabilize short-term bank and corporate funding markets. The exemptions issued pursuant to the policy expired one week from the date of issuance.

Policy on Payment System Risk

On March 23, 2020, the Board approved a notice (Docket No. OP-1589) to delay, from April 1 to October 1, 2020, the implementation of changes to its Policy on Payment System Risk (PSR policy) related to procedures for determining the net debit cap and maximum daylight overdraft capacity of a U.S. branch or agency of a foreign banking organization.⁴² This additional time allowed foreign banking organizations and the Federal Reserve Banks to focus on heightened priorities, in light of the challenges posed by the COVID event.

Effective April 24 through September 30, 2020. On April 23, 2020, the Board approved a policy statement (Docket No. OP-1716) temporarily adjusting the manner in which the Reserve Banks administer Part II of the PSR policy to encourage banking institutions to use intraday credit extended by Reserve Banks, on both a collateralized and uncollateralized basis, to support the provision of liquidity to households and businesses and the general smooth functioning of payment systems.⁴³ The PSR policy provides access to intraday credit to healthy institutions, subject to net debit caps and fees for uncollateralized overdrafts. The Board temporarily lifted net debit caps and fees for these institutions due to the extraordinary disruptions from the COVID event. The Board also temporarily adopted a streamlined process to allow secondary credit institutions to request collateralized capacity from their Reserve Banks.

On September 24, 2020, the Board approved a notice (Docket No. OP-1692) to amend the previously announced implementation date of (1) modifications to Federal Reserve Bank (Reserve Bank) wholesale payment services and (2) corresponding changes to the PSR policy, from March 19 to March 8, 2021, except for two changes to the PSR policy that will still be implemented on March 19, 2021.⁴⁴ This earlier implementation date will permit the Reserve Banks to test and implement modifications to the Fedwire® Funds Service and the National Settlement Service before March 19, 2021 (NACHA's current effective date for implementing the later same-day ACH window).

Effective September 30, 2020, to March 31, 2021. On September 30, 2020, the Board approved an extension of the temporary actions approved on April 23, 2020, to encourage healthy depository institutions to utilize intraday credit extended by Federal Reserve Banks (Docket No. OP-1716).⁴⁵ The temporary actions were previously scheduled to expire on September 30, 2020.

Resolution Plans

On May 5, 2020, in light of challenges arising from the COVID event, the Board approved an extension of two resolution plan deadlines: (1) to September 29, 2020, for the resolution plans of four firms (Barclays, Credit Suisse, Deutsche Bank, and UBS) that were required to remediate certain previously identified shortcomings and (2) to September 29, 2021, for the targeted resolution plans from large foreign and domestic banks in categories II and III of the large bank regulatory framework.⁴⁶ The determination to extend the two deadlines was made jointly with the FDIC.

On June 29, 2020, the Board approved (1) scope letters to the eight largest and most complex domestic banking organizations to guide their next resolution plans, which are due by July 1, 2021, and (2) letters to certain firms whose failure or discontinuance would threaten U.S. financial stability to inform the firms of the results of a review of their "critical operations."⁴⁷ All the letters were issued jointly with the FDIC.

On December 8, 2020, the Board approved final guidance (Docket No. OP-1699), issued jointly with the FDIC, for the 2021 and subsequent resolution plan submissions by certain foreign banks.⁴⁸ In the guidance, the Board and FDIC provided their tailored expectations for an orderly resolution under the U.S. Bankruptcy Code. The scope of the guidance was also modified to generally cover foreign banks in category II of the large bank regulatory framework. In addition, the Board and FDIC jointly approved targeted-scope letters to foreign banks in categories II and III of the large bank regulatory framework and extended the submission date for these firms' resolution plans to December 17, 2021.⁴⁹ The targeted-scope letters identify areas of interest that are required to be addressed in the firms' 2021 targeted resolution plans. In particular, these targeted plans will be required to include core elements of a firm's resolution strategy as well as how each firm has integrated changes to, and lessons learned from, its response to the COVID event into its resolution planning process. The Board and FDIC also jointly concluded that the previously identified shortcomings in the resolution plans of Barclays, Credit Suisse, Deutsche Bank, and UBS had been remediated.

Capital Planning and Stress Testing

On June 18, 2020, the Board approved actions to ensure large banks remained well capitalized, given economic disruptions caused by the COVID event.⁵⁰ As a result of changes in financial markets or the macroeconomic outlook that could have a material impact on the risk profile and financial condition of each of the 33 banking organizations participating in the 2020 stress test cycle, the Board required the firms to resubmit their capital plans within 45 days of receiving updated scenarios from the Board.

Under the Board's rules, a firm may not make a capital distribution following an event requiring resubmission unless it receives prior approval from the Board. Therefore, on the same day, the Board authorized firms, for the third quarter of 2020, to make certain dividend payments according to a cap and a formula based on their recent income. The Board did not authorize firms to make share repurchases.

On June 24, 2020, the Board approved (1) publicly disclosing summary results of the additional sensitivity analyses conducted in light of coronavirus-related events that had significantly and adversely impacted global financial markets and (2) notifying each firm participating in the 2020 stress test cycle of its SCB requirement, effective for the fourth quarter of 2020.⁵¹ The additional sensitivity analyses assessed the resiliency of large banks under three hypothetical downside scenarios: a V-shaped recession and recovery; a slower, U-shaped recession and recovery; and a W-shaped, double-dip recession.

On September 30, 2020, the Board approved extending the third-quarter limits on capital distributions, with minor modifications, through the fourth quarter of 2020.⁵²

On December 17, 2020, the Board approved extending the fourth-quarter limits on capital distributions, with certain modifications, through the first quarter of 2021.⁵³ For the first quarter of 2021, the Board limited the firms' dividend payments and share repurchases to an amount based on a firm's income over the past year.

On the same day, the Board also approved an extension of the time period for notifying each firm whether its SCB would be recalculated, from January 15 to March 31, 2021.

Instant Payments

On August 5, 2020, the Board approved a service announcement (Docket No. OP-1670) outlining the features and functionality of the FedNow Service, a new interbank round-the-clock, real-time gross payment and settlement service.⁵⁴ The FedNow Service, alongside similar services provided by the private sector, will support banks' provision of end-to-end instant payment services and will provide infrastructure to promote ubiquitous, safe, and efficient instant payments in the United States. Work related to the implementation of the FedNow Service is ongoing, and the target launch date is estimated for 2023.

Countercyclical Capital Buffer

On December 18, 2020, the Board approved affirmation of the Countercyclical Capital Buffer (CCyB) at the current level of 0 percent.⁵⁵ In making this determination, the Board followed the framework detailed in the Board's policy statement for setting the CCyB.

Interest on Reserves

On January 29, 2020, the Board approved raising the interest rate paid on required and excess reserve balances from 1.55 percent to 1.60 percent, effective January 30, 2020.⁵⁶ This action was taken to support the FOMC's decision on January 29 to maintain the federal funds rate in a target range of 1-1/2 to 1-3/4 percent. Setting the interest rate paid on required and excess reserve balances 10 basis points above the bottom of the target range for the federal funds rate was intended to foster trading in the federal funds market at rates well within the FOMC's target range.

On March 3, 2020, the Board approved lowering the interest rate paid on required and excess reserve balances from 1.60 percent to 1.10 percent, effective March 4, 2020.⁵⁷ This action was taken to support the FOMC's decision on March 3 to lower the target range for the federal funds rate by 50 basis points, to a range of 1 percent to 1-1/4 percent.

On March 15, 2020, the Board approved lowering the interest rate paid on required and excess reserve balances from 1.10 percent to 0.10 percent, effective March 16, 2020.⁵⁸ This action was taken to support the FOMC's decision on March 15 to lower the target range for the federal funds rate to 0 to 1/4 percent.

Special Facilities

Against the background of continued disruptions in economic conditions following the COVID event, the Board in 2020 established special facilities to support the flow of credit to households, businesses, and state and local governments. The facilities were established pursuant to section 13(3) of the Federal Reserve Act, under which the Board may, in unusual and exigent circumstances and with the prior approval of the Secretary of the Treasury, authorize a Federal Reserve Bank to extend credit to any participant in a program or facility with broad-based eligibility. The Board's section 13(3) lending authority is subject to limitations, including a prohibition on lending to entities that are insolvent and a requirement that the relevant Federal Reserve Bank be secured to its satisfaction in connection with emergency loans.⁵⁹ Unless otherwise indicated, the Federal Reserve Bank of New York administers the 2020 facilities. The Secretary of the Treasury approved the establishment of, and amendments to, all of the facilities, and all actions to establish or amend the facilities were approved by the unanimous vote of Chair Powell, Vice Chair Clarida, Vice Chair for Supervision Quarles, and Governors Brainard and Bowman. The December 28, 2020, action on the Main Street Lending Program was approved by these five Board members and Governor Waller.⁶⁰

Commercial Paper Funding Facility

On March 17, 2020, the Board approved the establishment of the Commercial Paper Funding Facility (CPFF) to ensure the smooth functioning of the commercial paper market by providing a liquidity backstop to U.S. issuers of commercial paper, including municipalities, through the purchase of three-month unsecured and asset-backed commercial paper directly from eligible issuers.⁶¹ The U.S. Department of the Treasury invested $10 billion of equity in the CPFF from the Treasury's Exchange Stabilization Fund (ESF).

On March 20 and 22, 2020, the Board approved expanding the terms of the instruments purchased by the CPFF and a reduction in the pricing of the facility.⁶²

On July 22, 2020, the Board approved expanding the eligible counterparties for the CPFF.⁶³

On November 28, 2020, the Board approved an extension of the CPFF until March 31, 2021.⁶⁴

Main Street Lending Program

The Board established the Main Street Lending Program to support lending to small and medium-sized for-profit businesses and nonprofit organizations that were in sound financial condition before the COVID event. The program, which terminated on January 8, 2021, operated through the following five facilities:

Main Street New Loan Facility (MSNLF)
Main Street Expanded Loan Facility (MSELF)
Main Street Priority Loan Facility (MSPLF)
Nonprofit Organization New Loan Facility (NONLF)
Nonprofit Organization Expanded Loan Facility (NOELF)

On April 8, 2020, the Board approved the establishment of the MSNLF and MSELF to support the flow of credit to small and medium-sized businesses by offering four-year loans to companies employing up to 10,000 workers or with 2019 annual revenues of up to $2.5 billion.⁶⁵ Under the term sheets, principal and interest payments on the loans were deferred for one year, and eligible lenders were permitted to originate new Main Street loans or use Main Street loans to increase the size of existing loans to eligible businesses. A special-purpose vehicle (SPV) was established by the Federal Reserve Bank of Boston (the Boston Reserve Bank) to purchase 95 percent of eligible loans from eligible lenders, with lenders retaining a 5 percent share. Borrowers also were required to follow compensation, stock repurchase, and dividend restrictions that applied to direct loan programs under the CARES Act. Firms participating in the SBA's PPP were also permitted to take out Main Street loans. The Treasury, using CARES Act funding, committed to invest $75 billion of equity in the SPV established for the Main Street facilities.

On April 30, 2020, the Board approved an expansion of the MSNLF and MSELF and the establishment of the MSPLF, which provided for increased risk sharing by lenders.⁶⁶ After the announcement of the MSNLF and MSELF on April 8, the Board requested public feedback on potential refinements to the Main Street Lending Program. Based on this feedback, the Board (1) lowered the minimum loan size for certain loans to $500,000 and (2) expanded the pool of eligible businesses for all Main Street loans to businesses with up to 15,000 employees or up to $5 billion in 2019 annual revenues. Under the new MSPLF term sheet, lenders would have retained a 15 percent share on loans that, when added to a borrower's existing debt, did not exceed six times the borrower's earnings, after appropriate adjustments for interest payments, taxes, and depreciation and other matters. The Boston Reserve Bank SPV would have purchased 85 percent of eligible MSPLF loans from eligible lenders.

On June 8, 2020, the Board approved expanding the MSNLF, MSELF, and MSPLF to allow more small and medium-sized businesses to receive support.⁶⁷ The changes included lowering the minimum loan size for certain loans to $250,000 from $500,000; increasing the maximum loan size for all three facilities; increasing the term of each loan option from four years to five years; and extending the repayment period for all loans by delaying principal payments until the end of the third year, rather than the end of the second year. Under these terms, the Boston Reserve Bank SPV purchased 95 percent of eligible MSPLF loans from eligible lenders, and lenders retained 5 percent of each loan. The Board also announced plans to develop a Main Street loan program for nonprofit organizations.

On July 13, 2020, the Board approved the establishment of the NONLF and NOELF to provide greater access to credit for nonprofit organizations, such as educational institutions, hospitals, and social services organizations, that were in sound financial condition before the pandemic.⁶⁸ Organizations participating in the NONLF or NOELF were required to be tax-exempt nonprofit organizations described in section 501(c)(3) or 501(c)(19) of the Internal Revenue Code. On June 15, the Board had requested public comment on proposals for nonprofit lending facilities and considered public feedback when establishing the terms of the two new facilities.⁶⁹ Specifically, the minimum employment threshold for nonprofits was lowered from 50 employees to 10, the limit on donation-based funding was eased, and several financial eligibility criteria were adjusted to accommodate a wider range of nonprofit operating models. The Main Street nonprofit loan terms generally mirrored those of Main Street for-profit business loans, including the interest rate, principal and interest payment deferral, five-year term, and minimum and maximum loan sizes. The Boston Reserve Bank SPV purchased 95 percent of eligible loans from eligible lenders, and lenders retained 5 percent of each loan.

On July 27, 2020, the Board approved an extension of the termination date for all five Main Street Lending Program facilities from September 30 to December 31, 2020.⁷⁰

On October 29, 2020, the Board approved adjustments to the MSNLF, MSPLF, and NONLF to better target support to smaller businesses: (1) the minimum loan size was lowered from $250,000 to $100,000 and (2) a separate fee structure was created for loans with an initial principal amount of $100,000 to $250,000. Technical changes were also made to the term sheets for all five Main Street Lending Program facilities.⁷¹

On December 28, 2020, the Board approved an extension of the termination date for all Main Street Lending Program facilities to January 8, 2021, to allow more time to process and fund loans that were submitted to the Main Street lender portal on or before December 14, 2020.⁷² The extension was consistent with section 1005 of the Consolidated Appropriations Act, 2021.

Money Market Mutual Fund Liquidity Facility

On March 18, 2020, the Board approved the establishment of the Money Market Mutual Fund Liquidity Facility (MMLF) to enhance the liquidity and functioning of crucial money markets.⁷³ Under the MMLF, the Boston Reserve Bank made loans available to eligible financial institutions, and the loans were secured by high-quality assets purchased by the financial institution from money market mutual funds. The Treasury provided $10 billion of credit protection to the Federal Reserve in connection with the MMLF from the Treasury's ESF.

On March 20, 2020, the Board approved enhancing the MMLF to include tax-exempt money market funds as eligible funds and to include highly rated paper issued by municipalities as eligible collateral.⁷⁴

On March 22, 2020, the Board approved expanding the assets covered by the MMLF to include a wider range of securities, including municipal variable-rate demand notes and bank certificates of deposit.⁷⁵

On July 27, 2020, the Board approved an extension of the termination date for the MMLF from September 30 to December 31, 2020.⁷⁶

On November 28, 2020, the Board approved an extension of the termination date for the MMLF from December 31, 2020, to March 31, 2021.⁷⁷

Municipal Liquidity Facility

On April 8, 2020, the Board approved the establishment of the Municipal Liquidity Facility (MLF) to provide up to $500 billion in lending to states and municipalities to help them better manage cash flow pressures and continue to serve households and businesses in their communities.⁷⁸ The MLF was authorized to purchase short-term notes directly from U.S. states, U.S. counties with a population of at least 2 million residents, and U.S. cities with a population of at least 1 million residents. The Treasury, using CARES Act funding, committed to invest $35 billion of equity in the SPV established for the MLF.

On April 27, 2020, the Board approved the expansion of the scope and duration of the MLF.⁷⁹ The population thresholds were lowered to 500,000 for U.S. counties and 250,000 for U.S. cities. To be eligible for purchase by the MLF, short-term notes issued by eligible municipalities had to mature no later than 36 months from the date of issuance—an increase from the previously announced 24-month maximum term—and meet certain other requirements. In addition, the facility's termination date was extended to December 31, 2020.

On May 10, 2020, the Board approved amendments to the terms of the MLF to update pricing and other information.⁸⁰

On June 3, 2020, the Board approved expanding the number and types of entities eligible to directly issue notes to the MLF to include at least two cities or counties in each state, regardless of population. Governors of each state could also designate two issuers within their jurisdictions whose revenues were generally derived from operating government activities (such as public transit, airports, toll facilities, and utilities) to be eligible to directly use the facility.⁸¹

On August 11, 2020, the Board approved amendments to revise the MLF's pricing methodology by reducing the interest rate spread on tax-exempt notes for each credit rating category by 50 basis points and reducing the amount by which the interest rate for taxable notes could be adjusted relative to tax-exempt notes.⁸² Note: The MLF ceased purchasing eligible notes on December 31, 2020.

Paycheck Protection Program Liquidity Facility

On April 8, 2020, the Board approved the establishment of the Paycheck Protection Program Liquidity Facility (PPPLF) to supply liquidity to participating financial institutions through term financing backed by PPP loans.⁸³ The SBA's PPP provides loans to small businesses that are fully guaranteed by the SBA. Upon certain conditions, PPP loans can be completely forgiven so that small businesses can keep their workers on the payroll. Under the PPPLF, the Federal Reserve Banks could extend credit on a nonrecourse basis to eligible financial institutions that originated PPP loans, taking the loans as collateral at face value.

On April 30, 2020, the Board approved expanding the PPPLF to provide access to additional lenders and allow eligible borrowers to pledge as collateral whole PPP loans they had purchased. PPPLF participation was open to all SBA-approved PPP lenders, including credit unions, community development financial institutions, members of the Farm Credit System, small business lending companies licensed by the SBA, and some financial technology firms.⁸⁴

On July 27, 2020, the Board approved an extension of the termination date for the PPPLF from September 30 to December 31, 2020.⁸⁵

On November 28, 2020, the Board approved an extension of the termination date for the PPPLF from December 31, 2020, to March 31, 2021.⁸⁶ Note: On March 4, 2021, the Board approved an extension of the termination date for the PPPLF to June 30, 2021.⁸⁷

Primary Dealer Credit Facility

On March 17, 2020, the Board approved the establishment of the Primary Dealer Credit Facility (PDCF) to smooth market functioning and facilitate the availability of credit to businesses and households.⁸⁸ Under the PDCF, primary dealers could obtain term financing for up to 90 days in exchange for a broad range of collateral.

On July 27, 2020, the Board approved an extension of the termination date for the PDCF from September 30 to December 31, 2020.⁸⁹

On November 28, 2020, the Board approved an extension of the PDCF from December 31, 2020, to March 31, 2021.⁹⁰

Primary Market Corporate Credit Facility

On March 22, 2020, the Board approved the establishment of the Primary Market Corporate Credit Facility (PMCCF) to support credit to large employers through bond and loan issuances.⁹¹ The PMCCF was open to companies that were investment grade as of March 22, 2020, and met certain other conditions. The Treasury committed to an initial investment in the PMCCF using ESF funds.

On April 8, 2020, the Board approved expanding the size and scope of the PMCCF.⁹² The changes included an updated pricing scheme, new issuer limits, and other changes to reflect the fact that the Treasury, using CARES Act funding, committed to invest $75 billion of equity in the SPV established for both the PMCCF and the Secondary Market Corporate Credit Facility.

On June 29, 2020, the Board approved an updated term sheet for the PMCCF that added pricing and other information. Prices were issuer specific and subject to minimum and maximum spreads over comparable-maturity the Treasury securities.⁹³

On July 27, 2020, the Board approved an extension of the termination date for the PMCCF from September 30 to December 31, 2020.⁹⁴ Note: The PMCCF was no longer authorized to purchase eligible assets as of December 31, 2020.

Secondary Market Corporate Credit Facility

On March 22, 2020, the Board approved the establishment of the Secondary Market Corporate Credit Facility (SMCCF) to support market liquidity through the purchase of (1) secondary-market corporate bonds issued by U.S. companies that were investment grade as of March 22, 2020, and met certain other conditions, and (2) U.S.-listed exchange-traded funds whose investment objective was to provide broad exposure to the market for U.S. corporate bonds.⁹⁵ The Treasury committed to an initial investment in the SMCCF using ESF funds.

On April 8, 2020, the Board approved expanding the size and scope of the SMCCF.⁹⁶ The changes included allowing the purchase of (1) bonds issued by companies that fell below investment grade following the announcement of the facility (so long as they remained rated at least BB-) and (2) a limited amount of certain exchange-traded funds. The changes also reflect that the Treasury, using CARES Act funding, committed to make a $75 billion equity investment in the SPV established for the SMCCF and the PMCCF.

On June 15, 2020, the Board approved updates to the SMCCF to authorize the facility to buy a broad and diversified portfolio of corporate bonds, thereby supporting market liquidity and the availability of credit for large employers.⁹⁷ The changes authorized the SMCCF to purchase individual corporate bonds to create a portfolio based on a broad, diversified market index of U.S. corporate bonds that met the SMCCF's issuer rating requirements and certain other conditions. Note: On July 23, the Board announced an expansion of counterparties for the SMCCF.⁹⁸

On July 27, 2020, the Board approved an extension of the termination date for the SMCCF from September 30 to December 31, 2020.⁹⁹ Note: The SMCCF ceased purchasing eligible assets on December 31, 2020.

Term Asset-Backed Securities Loan Facility

On March 22, 2020, the Board approved the establishment of the Term Asset-Backed Securities Loan Facility (TALF) to help meet the credit needs of consumers and small businesses by enabling the issuance of asset-backed securities (ABS) and improving the market conditions for ABS more generally.¹⁰⁰ The TALF facilitated the issuance of ABS backed by student loans, auto loans, credit card loans, SBA-guaranteed loans, and certain other assets. The Treasury, using the ESF, committed to make an equity investment in the SPV established for this facility.

On April 8, 2020, the Board approved changes to broaden the range of assets eligible as collateral for the TALF to include the triple-A rated tranches of both outstanding commercial mortgage-backed securities and newly issued collateralized loan obligations.¹⁰¹

On May 12, 2020, the Board approved changes to the TALF (1) to reflect that the Treasury would use CARES Act funding to make the $10 billion equity investment in the SPV established for the TALF, (2) to implement certain restrictions and limitations required by the CARES Act, and (3) to update information regarding borrower and collateral eligibility criteria.¹⁰²

On July 22, 2020, the Board approved an expansion of eligible counterparties for the TALF.¹⁰³

On July 27, 2020, the Board approved an extension of the termination date for the TALF from September 30 to December 31, 2020.¹⁰⁴ Note: The TALF ceased extending credit on December 31, 2020.

Discount Rates for Depository Institutions in 2020

Under the Federal Reserve Act, the boards of directors of the Federal Reserve Banks must establish rates on discount window loans to depository institutions at least every 14 days, subject to review and determination by the Board of Governors. Periodically, the Board considers proposals by the 12 Reserve Banks to establish the primary credit rate and approves proposals to maintain the formulas for computing the secondary and seasonal credit rates.

Primary, Secondary, and Seasonal Credit

Primary credit, the Federal Reserve's main lending program for depository institutions, is extended at the primary credit rate. It is made available, with minimal administration, as a source of liquidity to depository institutions that, in the judgment of the lending Federal Reserve Bank, are in generally sound financial condition. During 2020, the Board approved two decreases in the primary credit rate, bringing the rate from 2-1/4 percent to 1/4 percent and narrowing the spread of the primary credit rate to the top of the target range for the federal funds rate from 1/2 percent to 0 percent.

The Board reached these determinations on the primary credit rate recommendations of the Reserve Bank boards of directors. The Board's actions were taken in conjunction with the FOMC's decisions to lower the target range for the federal funds rate by 1-1/2 percentage points, to 0 percent to 1/4 percent. Monetary policy developments are reviewed more fully in other parts of this report (see section 2, "Monetary Policy and Economic Developments").

Concurrent with the second primary credit rate decrease on March 15, 2020, the Board announced that depository institutions may borrow primary credit for periods as long as 90 days, prepayable and renewable by the borrower on a daily basis. Collectively, the changes to the offering rate and other terms of primary credit reflected broader efforts by the Federal Reserve to encourage discount window use to support the smooth flow of credit to households and businesses during the COVID event.¹⁰⁵

Secondary credit is available in appropriate circumstances to depository institutions that do not qualify for primary credit. The secondary credit rate is set at a spread above the primary credit rate. Throughout 2020, the spread was set at 50 basis points. At year-end, the secondary credit rate was 3/4 percent.

Seasonal credit is available to smaller depository institutions to meet liquidity needs that arise from regular swings in their loans and deposits. The rate on seasonal credit is calculated every two weeks as an average of selected money market yields, typically resulting in a rate close to the target range for the federal funds rate. At year-end, the seasonal credit rate was 0.15 percent (see table E.1).¹⁰⁶

Table E.1. Federal Reserve Bank interest rates on loans to depository institutions, December 31, 2020

Percent

Reserve Bank	Primary credit	Secondary credit	Seasonal credit
All banks	0.25	0.75	0.15

Note: Primary credit is available for very short terms as a backup source of liquidity to depository institutions that are in generally sound financial condition in the judgment of the lending Federal Reserve Bank. Secondary credit is available in appropriate circumstances to depository institutions that do not qualify for primary credit. Seasonal credit is available to help relatively small depository institutions meet regular seasonal needs for funds that arise from a clear pattern of intra-yearly movements in their deposits and loans. The discount rate on seasonal credit takes into account rates charged by market sources of funds and is reestablished on the first business day of each two-week reserve maintenance period.

Votes on Changes to Discount Rates for Depository Institutions

Details on the two actions by the Board to approve decreases in the primary credit rate are provided below.

March 3, 2020. Effective March 4, 2020, the Board approved actions taken by the boards of directors of the Federal Reserve Banks of New York and Minneapolis to decrease the primary credit rate from 2-1/4 percent to 1-3/4 percent. On March 4, 2020, the Board approved identical actions subsequently taken by the boards of directors of the Federal Reserve Banks of Boston, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Kansas City, Dallas, and San Francisco, effective immediately.

March 15, 2020. Effective March 16, 2020, the Board approved actions taken by the boards of directors of the Federal Reserve Banks of New York and Minneapolis to decrease the primary credit rate from 1-3/4 percent to 1/4 percent. On March 16, 2020, the Board approved identical actions subsequently taken by the boards of directors of the Federal Reserve Banks of Boston, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Kansas City, Dallas, and San Francisco, effective immediately.

The Board of Governors and the Government Performance and Results Act

Overview

The Government Performance and Results Act (GPRA) of 1993 requires federal agencies to prepare a strategic plan covering a multiyear period and to submit an annual performance plan and an annual performance report. Although the Board is not covered by GPRA, the Board voluntarily complies with the spirit of the act and, like other federal agencies, publicly publishes a multiyear Strategic Plan, as well as an Annual Performance Plan and an Annual Performance Report.¹⁰⁷

Strategic Plan, Performance Plan, and Performance Report

On December 27, 2019, the Board published the Strategic Plan 2020–23, which outlines the organization's priorities across five functional areas—Monetary Policy and Financial Stability, Supervision, Payment System and Reserve Bank Oversight, Public Engagement and Community Development, and Mission Enablement—for maintaining the stability, integrity, and efficiency of the nation's monetary, financial, and payments systems. In formulating the Strategic Plan 2020–23, the Board identified and prioritized the goals and objectives paramount to advancing the organization's mission while allowing for appropriate flexibility to respond to emerging and evolving challenges.

The Annual Performance Plan sets forth the projects and initiatives in support of the Board's current Strategic Plan's goals and objectives during a one-year period. The Annual Performance Plan helps the organization identify and prioritize investments and dedicate sufficient resources across the five functions to meet its congressional mandate, while maintaining ongoing operations.

The Annual Performance Report summarizes the Board's accomplishments throughout the performance year that contributed toward achieving the goals and objectives identified in that year's Annual Performance Plan. The Annual Performance Report provides transparency into the organization's activities and helps the Board to communicate the continued fulfillment of its dual mandate to the U.S. Congress and the public.

Ultimately, the organization's planning and reporting processes enable the Board to identify, prioritize, and progress those activities most critical to advancing its mission.

Footnotes

1. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-03-24/html/2020-05806.htm. Return to text

2. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-04-28/html/2020-09044.htm. Return to text

3. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2021-02-10/html/2020-28756.htm. Return to text

4. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-06-01/html/2020-10962.htm. Return to text

5. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-04-22/html/2020-08574.htm. Return to text

6. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-07-16/html/2020-15367.htm. Return to text

7. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2021-02-17/html/2021-02966.htm. Return to text

8. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-03-20/html/2020-06051.htm. Return to text

9. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-03-23/html/2020-06156.htm. Return to text

10. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-03-31/html/2020-06755.htm. Return to text

11. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-03-31/html/2020-06770.htm. Return to text

12. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-04-14/html/2020-07345.htm. Return to text

13. See Federal Register notices at https://www.govinfo.gov/content/pkg/FR-2020-04-23/html/2020-07449.htm and https://www.govinfo.gov/content/pkg/FR-2020-04-23/html/2020-07448.htm. Return to text

14. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-04-13/html/2020-07712.htm. Return to text

15. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-10-08/html/2020-19829.htm. Return to text

16. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-09-30/html/2020-19782.htm. Return to text

17. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-10-09/html/2020-19922.htm. Return to text

18. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-10-28/html/2020-21894.htm. Return to text

19. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2021-01-06/html/2020-27046.htm. Return to text

20. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-03-18/html/2020-04838.htm. Return to text

21. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-04-17/html/2020-08216.htm. Return to text

22. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-10-16/html/2020-21563.htm. Return to text

23. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-03-02/html/2020-03398.htm. Return to text

24. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-04-02/html/2020-06993.htm. Return to text

25. See Federal Register notices at https://www.govinfo.gov/content/pkg/FR-2020-07-01/html/2020-14097.htm and https://www.govinfo.gov/content/pkg/FR-2020-07-01/html/2020-14094.htm. Return to text

26. For Regulation KK, the agencies are the Board, FDIC, OCC, Farm Credit Administration, and Federal Housing Finance Agency. Return to text

27. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-12-08/html/2020-25623.htm. Return to text

28. For Regulation VV, the agencies are the Board, FDIC, OCC, Commodity Futures Trading Commission, and Securities and Exchange Commission. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-07-31/html/2020-15525.htm. Return to text

29. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-05-06/html/2020-09716.htm. Return to text

30. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-10-28/html/2020-21894.htm. Return to text

31. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2021-02-11/html/2020-26546.htm. Return to text

32. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-03-26/html/2020-06371.htm. Return to text

33. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-05-28/html/2020-09665.htm. Return to text

34. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-10-08/html/2020-19829.htm. Return to text

35. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-12-02/html/2020-26138.htm. Return to text

36. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-09-15/html/2020-18806.htm. Return to text

37. See CA letter 20-9 at https://www.federalreserve.gov/supervisionreg/caletters/CA%2020-9%20Poverty%20Measures%20and%20Public%20Welfare%20Investments%20(051220).pdf. Return to text

38. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-03-17/html/2020-05491.htm. Return to text

39. See Federal Register notices at https://www.govinfo.gov/content/pkg/FR-2020-06-01/html/2020-10291.htm and https://www.govinfo.gov/content/pkg/FR-2020-06-01/html/2020-10292.htm. Return to text

40. See the template letter at https://www.federalreserve.gov/supervisionreg/legalinterpretations/fedreserseactint20200317.pdf. Return to text

41. See the template letter at https://www.federalreserve.gov/supervisionreg/legalinterpretations/fedreserseactint20200318.pdf. Return to text

42. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-04-06/html/2020-06482.htm. Return to text

43. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-04-28/html/2020-09052.htm. Return to text

44. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-09-30/html/2020-21532.htm. Return to text

45. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-10-06/html/2020-22005.htm. Return to text

46. See press release at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200506a.htm. Return to text

47. See press release at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200701a.htm. Return to text

48. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-12-22/html/2020-28155.htm. Return to text

49. See press release at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20201209a.htm. Return to text

50. See press release at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200625c.htm. Return to text

51. See press release at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200625c.htm. Return to text

52. See press release at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200930b.htm. Return to text

53. See press release at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20201218b.htm. Return to text

54. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2020-08-11/html/2020-17539.htm. Return to text

55. See press release at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20201218c.htm. Return to text

56. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200129a1.htm. Return to text

57. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200303a1.htm. Return to text

58. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200315a1.htm. Return to text

59. See 12 U.S.C. § 343(3); 12 C.F.R. § 201.4(d). Return to text

60. Governor Waller was sworn in as a member of the Board on December 18, 2020. Return to text

61. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200317a.htm. Return to text

62. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200323b.htm. Return to text

63. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200723a.htm. Return to text

64. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20201130a.htm. Return to text

65. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200409a.htm. The Board had earlier announced plans to establish a Main Street Lending Program (see press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200323b.htm). Return to text

66. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200430a.htm. Return to text

67. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200608a.htm. Return to text

68. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200717a.htm. Return to text

69. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200615b.htm. Return to text

70. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200728a.htm. Return to text

71. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20201030a.htm. Return to text

72. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20201229a.htm. Return to text

73. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200318a.htm. Return to text

74. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200320b.htm. Return to text

75. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200323b.htm. Return to text

76. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200728a.htm. Return to text

77. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20201130a.htm. Return to text

78. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200409a.htm. Return to text

79. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200427a.htm. Return to text

80. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200511a.htm. Return to text

81. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200603a.htm. Return to text

82. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200811a.htm. Return to text

83. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200409a.htm. Return to text

84. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200430b.htm. Return to text

85. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200728a.htm. Return to text

86. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20201130a.htm. Return to text

87. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20210308a.htm. Return to text

88. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200317b.htm. Return to text

89. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200728a.htm. Return to text

90. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20201130a.htm. Return to text

91. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200323b.htm. Return to text

92. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200409a.htm. Return to text

93. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200629a.htm. Return to text

94. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200728a.htm. Return to text

95. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200323b.htm. Return to text

96. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200409a.htm. Return to text

97. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200615a.htm. Return to text

98. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200723a.htm. Return to text

99. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200728a.htm. Return to text

100. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200323b.htm. Return to text

101. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200409a.htm. Return to text

102. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200512a.htm. Return to text

103. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200723a.htm. Return to text

104. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200728a.htm. Return to text

105. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200315b.htm. Return to text

106. For current and historical discount rates, see https://www.frbdiscountwindow.org/. Return to text

107. The Strategic Plan, Annual Performance Plan, and Annual Performance Report are available on the Federal Reserve Board's website at https://www.federalreserve.gov/publications/gpra.htm. Return to text

Last Update: August 26, 2021

Annual Report