The Fed just raised the dividend threshold for smaller banks by 10%

The US central bank just raised the asset threshold that determines how much dividend banks get on their required stock. Banks with less than $13.182 billion in assets will now receive a higher dividend rate on their Federal Reserve stock.

Every year, the US central bank adjusts this threshold for inflation. This year's increase means more banks will qualify for the higher dividend rate. This puts more cash into the hands of smaller banks, which can then be used for lending or other investments.