[Federal Register Volume 60, Number 94 (Tuesday, May 16, 1995)]
[Notices]
[Page 26034]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-12016]
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FARM CREDIT ADMINISTRATION
[BM-09-MAY-95-03]
Policy Statement on Regulatory Philosophy
AGENCY: Farm Credit Administration.
ACTION: Policy statement.
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SUMMARY: The Farm Credit Administration (FCA) Board reaffirmed the
Policy Statement on Regulatory Philosophy (59 FR 32189, June 22, 1994)
in order to assist in the creation of an environment which promotes the
confidence of customer/shareholders, investors and the public in the
Farm Credit System's (System) financial strength and future viability.
The FCA recommited to promulgate regulations only as required by law,
as necessary to interpret the law, or as necessary to promote the safe
and sound operation of System institutions.
EFFECTIVE DATE: May 9, 1995.
FOR FURTHER INFORMATION CONTACT: Floyd Fithian, Secretary to the Farm
Credit Administration Board, Farm Credit Administration, McLean,
Virginia 22102-5090, (703) 883-4000, TDD (703) 883-4444.
SUPPLEMENTARY INFORMATION: The text of the Board's policy statement on
regulatory philosophy is set forth below in its entirety:
FCA Board Action on Policy Statement on Regulatory Philosophy, BM-09-
MAY-95-03, FCA-PS-59
Effective Date: May 9, 1995.
Effect on Previous Action: Replaces BM-17-FEB-94-02 [FCA-PS-59]
Sources of Authority: Farm Credit Act of 1971, as amended; 12
U.S.C. 2001 et seq.
The FCA Board adopts the edited version and reaffirms the policy
statement on regulatory philosophy as follows:
The FCA shall develop regulations consistent with its authorities
under the Farm Credit Act of 1971 (Act), as amended, and other relevant
statutes. It is the FCA Board's philosophy to promulgate regulations
that are necessary to implement the law and to promote the safety and
soundness of the Farm Credit System (System). In general, the Board's
regulatory objective will be to:
Create an environment that promotes the confidence of customer/
shareholders and investors and the public in the Farm Credit
System's financial strength and future viability and grants System
institutions the maximum flexibility consistent with this purpose to
offer high quality, reasonably priced credit and other services to
customer/shareholders.
The FCA Board believes that safe and sound operations of System
institutions will promote the following: (a) Investor confidence in
System debt securities, which works to ensure adequate funds at
reasonable rates for lending to customer/shareholders; and, (b)
customer/shareholder confidence in each cooperatively owned System
institution, which works to ensure adequate market share and sufficient
capital.
To effectively achieve its objective, the FCA will:
1. Promulgate regulations only as required by law, as necessary to
interpret the law, or as necessary to promote the safe and sound
operation of System institutions.
2. Work to eliminate outdated regulations and ensure that its
regulations implement the purposes of the law without unnecessary
burden or cost. The FCA will adopt its regulatory approach based on a
reasoned determination that the benefits of the intended regulations
justify their cost.
3. Strive to ensure that each regulation has a well-defined
objective and addresses specifically identified risks or problems.
Preambles to regulation will explain the FCA Board's rationale for the
regulatory solution adopted.
4. Promulgate regulations that, to the extent feasible, specify
performance criteria and objectives rather than operational methods for
achieving their purposes. Operational constraints imposed by regulation
should be based on specific statutory requirements or the achievement
of regulatory objectives.
5. Give high priority to issues that pose the greatest risk within
the Farm Credit System.
6. Consider policy positions of the other financial regulators to
determine whether consistency would facilitate the objectives of the
Act or whether a different approach is warranted.
7. Draft its regulations and policy statements to be clear and easy
to understand, with the goal of minimizing the potential for ambiguity,
uncertainty, and resultant litigation.
8. Utilize innovative approaches to seeking the public's
perspective regarding regulatory proposals in appropriate
circumstances.
The FCA Board will consider these principles as it develops new
regulatory initiatives and as it reviews existing regulations to
determine whether they continue to be necessary and effective. The FCA
Board is committed to thoughtfully evaluating competing considerations
to arrive at its regulatory judgments.
Adopted this 9th day of May, 1995 by order of the Board.
Dated May 10, 1995.
Floyd Fithian,
Secretary, Farm Credit Administration Board.
[FR Doc. 95-12016 Filed 5-15-95; 8:45 am]
BILLING CODE 6705-01-P
