What is the Dividend that Banks Receive for their Ownership of Shares in a Federal Reserve Branch?

For banks with assets over $10 billion, the dividend is only 6% if the price of the last auctioned 10 year is higher, so as of now, the banks only receive dividends on their shares equal to the rate of a 10 year treasury. If the bank has assets valued lower than $10 billion, they always receive 6% in dividends on their shares.

It used to be a flat 6% regardless of the price of a 10 year treasury until the “highway bill” in 2015…Read more

“Federal Reserve finalizes lower dividend for member banks”, Reuters


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