2025-20472Rule

Fed Bumps Bank Dividend Cutoff to $13 Billion

Published Date: 11/20/2025

Rule

Summary

The Federal Reserve is raising the asset threshold that decides how much dividend banks get on their Reserve Bank stock, adjusting it for inflation to $13.18 billion starting January 1, 2026. This change affects banks that own Reserve Bank stock and have total assets near this new cutoff. The update keeps dividend rules fair and reflects the economy’s growth, with the new rule kicking in December 22, 2025.

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Reserve Bank Stock Dividend Cutoff Raised

The Board raised the total consolidated asset threshold used to decide Reserve Bank stock dividend treatment from $12,841,000,000 to $13,182,000,000. This adjusted threshold (based on a 31.82% change in the BEA Gross Domestic Product Price Index from the 2015 baseline) takes effect December 22, 2025 and applies beginning January 1, 2026 through December 31, 2026; it determines whether Reserve Bank stockholders receive a statutory 6% dividend or a dividend tied to the high yield on the 10-year Treasury.

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Key Dates

Published Date
Rule Effective
11/20/2025
12/22/2025

Department and Agencies

Department
Independent Agency
Agency
Federal Reserve System
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