[Federal Register Volume 63, Number 230 (Tuesday, December 1, 1998)]
[Rules and Regulations]
[Page 66001]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31976]
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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 a decrease 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 DATES: The amendments to part 201 (Regulation A) were
effective November 17, 1998. The rate changes for adjustment credit
were effective on the dates specified in 12 CFR 201.51.
FOR FURTHER INFORMATION CONTACT: Jennifer J. Johnson, Secretary of the
Board (202/452-3259); for users of Telecommunications Device for the
Deaf (TDD), please contact Diane Jenkins, (202/452-3544), Board of
Governors of the Federal Reserve System, 20th and C Streets NW,
Washington, DC 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 Banks' discretion, for
extended credit. In decreasing 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. Although conditions in financial markets have settled down
materially since mid-October, unusual strains remain. With the 75-
basis-point decline in the federal funds rate since September,
financial conditions can reasonably be expected to be consistent with
fostering sustained economic expansion while keeping inflationary
pressures subdued.
Regulatory Flexibility Act Certification
Pursuant to section 605(b) of the Regulatory Flexibility Act (5
U.S.C. 605(b)), 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. The rule does not impose any
additional requirements on entities affected by the regulation.
Administrative Procedure Act
The provisions of 5 U.S.C. 553(b) relating to notice and public
participation were not followed in connection with the adoption of the
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 fostering sustainable economic growth.
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.
List of Subjects in 12 CFR Part 201
Banks, Banking, Credit, Federal Reserve System.
For the reasons set out in the preamble, 12 CFR part 201 is amended
as set forth below:
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............................. 4.5 Nov 18, 1998
New York........................... 4.5 Nov 17, 1998
Philadelphia....................... 4.5 Nov 17, 1998
Cleveland.......................... 4.5 Nov 19, 1998
Richmond........................... 4.5 Nov 18, 1998
Atlanta............................ 4.5 Nov 18, 1998
Chicago............................ 4.5 Nov 19, 1998
St. Louis.......................... 4.5 Nov 19, 1998
Minneapolis........................ 4.5 Nov 19, 1998
Kansas City........................ 4.5 Nov 18, 1998
Dallas............................. 4.5 Nov 17, 1998
San Francisco...................... 4.5 Nov 17, 1998
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By order of the Board of Governors of the Federal Reserve
System, November 24, 1998.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 98-31976 Filed 11-30-98; 8:45 am]
BILLING CODE 6210-01-P
