[Federal Register Volume 59, Number 227 (Monday, November 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29174]
[Federal Register: November 28, 1994]
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FEDERAL RESERVE SYSTEM
12 CFR Part 201
[Regulation A]
Extensions of Credit by Federal Reserve Banks; Change in Discount
Rate
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule.
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SUMMARY: The Board of Governors has amended its Regulation A on
Extensions of Credit by Federal Reserve Banks to reflect its approval
of an increase in the basic discount rate at each Federal Reserve Bank.
The Board acted on requests submitted by the Boards of Directors of the
twelve Federal Reserve Banks.
EFFECTIVE DATE: These amendments to part 201 (Regulation A) were
effective November 18, 1994. The rate changes for adjustment credit
were effective on the dates specified in 12 CFR 201.51.
FOR FURTHER INFORMATION CONTACT: William W. Wiles, Secretary of the
Board (202/452-3257); for the hearing impaired only, contact Dorothea
Thompson, Telecommunications Device for the Deaf (TDD) (202/452-3544),
Board of Governors of the Federal Reserve System, 20th and C Streets,
N.W., Washington, D.C. 20551.
SUPPLEMENTARY INFORMATION: Pursuant to the authority of sections 10(b),
13, 14, 19, et al., of the Federal Reserve Act, the Board has amended
its Regulation A (12 CFR part 201) to incorporate changes in discount
rates on Federal Reserve Bank extensions of credit. The discount rates
are the interest rates charged to depository institutions when they
borrow from their district Reserve Banks.
The ``basic discount rate'' is a fixed rate charged by Reserve
Banks for adjustment credit and, at the Reserve Bank's discretion, for
extended credit. In increasing the basic discount rate, the Board acted
on requests submitted by the Boards of Directors of the twelve Federal
Reserve Banks. The new rates were effective on the dates specified
below. The increase was implemented to keep inflationary pressures
contained, and thereby foster sustainable economic growth.
The provisions of 5 U.S.C. 553(b) relating to notice and public
participation were not followed in connection with the adoption of this
amendment because the Board for ``good cause'' finds that delaying the
change in the basic discount rate in order to allow notice and public
comment on the change is impracticable, unnecessary, and contrary to
the public interest in keeping inflation contained, and thereby
fostering sustainable economic growth.\1\
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\1\The Board's Rules of Procedure provide that advance notice
and deferred effective date will ordinarily be omitted in the public
interest for changes in discount rates. 12 CFR 262.2(e).
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The provisions of 5 U.S.C. 553(d) that prescribe 30 days' prior
notice of the effective date of a rule have not been followed because
section 553(d) provides that such prior notice is not necessary
whenever there is good cause for finding that such notice is contrary
to the public interest. As previously stated, the Board determined that
delaying the changes in the basic discount rate is contrary to the
public interest.
Regulatory Flexibility Act Analysis
Pursuant to section 605(b) of the Regulatory Flexibility Act (5
U.S.C. 601-612), the Board certifies that the change in the basic
discount rate will not have a significant adverse economic impact on a
substantial number of small entities. Although the change increases the
rate of interest charged to borrowers from Reserve Banks, the Board
believes that the higher cost of funds is outweighed by the salutary
effect on the economy.
List of Subjects in 12 CFR Part 201
Banks, banking, Credit, Federal Reserve System.
For the reasons outlined in the preamble, the Board of Governors
amends 12 CFR part 201 as follows:
PART 201--EXTENSIONS OF CREDIT BY FEDERAL RESERVE BANKS (REGULATION
A)
1. The authority citation for 12 CFR part 201 continues to read as
follows:
Authority: 12 U.S.C. 343 et seq., 347a, 347b, 347c, 347d, 348 et
seq., 357, 374, 374a and 461.
2. Section 201.51 is revised to read as follows:
Sec. 201.51 Adjustment credit for depository institutions.
The rates for adjustment credit provided to depository institutions
under Sec. 201.3(a) are:
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Federal reserve bank Rate Effective
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Boston................................... 4.75 Nov. 16, 1994.
New York................................. 4.75 Nov. 15, 1994.
Philadelphia............................. 4.75 Nov. 17, 1994.
Cleveland................................ 4.75 Nov. 16, 1994.
Richmond................................. 4.75 Nov. 16, 1994.
Atlanta.................................. 4.75 Nov. 16, 1994.
Chicago.................................. 4.75 Nov. 17, 1994.
St. Louis................................ 4.75 Nov. 15, 1994.
Minneapolis.............................. 4.75 Nov. 16, 1994.
Kansas City.............................. 4.75 Nov. 15, 1994.
Dallas................................... 4.75 Nov. 16, 1994.
San Francisco............................ 4.75 Nov. 15, 1994.
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3. Section 201.52(b) is revised to read as follows:
Sec. 201.52 Extended credit for depository institutions.
* * * * *
(b) Extended credit. For extended credit to depository institutions
under Sec. 201.3(c), for credit outstanding for more than 30 days, a
flexible rate will be charged that takes into account rates on market
sources of funds, but in no case will the rate charged be less than the
rate for adjustment credit, as set out in Sec. 201.51, plus one-half
percentage point. At the discretion of the Federal Reserve Bank, the
30-day time period may be shortened.
By order of the Board of Governors of the Federal Reserve
System, November 18, 1994.
William W. Wiles,
Secretary of the Board.
[FR Doc. 94-29174 Filed 11-25-94; 8:45 am]
BILLING CODE 6210-01-P
