The Federal Reserve Board issued a final rule regarding the dividend rate applicable to Federal Reserve institutions with more than $10 billion in assets under the Fixing America's Surface Transportation (FAST) Act. This final rule is the same as the February interim final rule. It decreases the dividend rate for these institutions to the lesser of 6 percent or the most recent 10-year Treasury auction rate prior to the dividend payment.

The final rule, which takes effect January 1, 2017, also adjusts the treatment of accrued dividends when a Federal Reserve institution issues or cancels capital stock owned by a large member bank.

Read the press release for more details.