[Federal Register Volume 61, Number 32 (Thursday, February 15, 1996)]
[Rules and Regulations]
[Page 5926]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3389]
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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 DATE: The amendments to part 201 (Regulation A) were
effective February 5, 1996. 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 users of Telecommunications Device for the
Deaf (TDD), please contact Dorothea Thompson, (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. Moderating economic expansion in recent months has reduced
potential inflationary pressures going forward. In this environment,
the decrease in rates is consistent with continued inflation and
sustainable growth.
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.
Paperwork Reduction Act
In accordance with section 3506 of the Paperwork Reduction Act of
1995 (44 U.S.C. Ch. 35; 5 CFR 1320 Appendix A.1), the Board reviewed
the rule under the authority delegated to the Board by the Office of
Management and Budget. No collections of information pursuant to the
Paperwork Reduction Act are contained in the rule.
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.......................... 5.00 February 1, 1996.
New York........................ 5.00 January 31, 1996.
Philadelphia.................... 5.00 January 31, 1996.
Cleveland....................... 5.00 January 31, 1996.
Richmond........................ 5.00 February 1, 1996.
Atlanta......................... 5.00 January 31, 1996.
Chicago......................... 5.00 February 1, 1996.
St. Louis....................... 5.00 February 5, 1996.
Minneapolis..................... 5.00 January 31, 1996.
Kansas City..................... 5.00 February 1, 1996.
Dallas.......................... 5.00 January 31, 1996.
San Francisco................... 5.00 January 31, 1996.
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By order of the Board of Governors of the Federal Reserve
System, February 9, 1996.
William W. Wiles,
Secretary of the Board.
[FR Doc. 96-3389 Filed 2-14-96; 8:45 a.m.]
BILLING CODE 6210-01-P
