82 FR 18215 - Regulation A: Extensions of Credit by Federal Reserve Banks

FEDERAL RESERVE SYSTEM

Federal Register Volume 82, Issue 73 (April 18, 2017)

Page Range		18215-18216
FR Document		2017-07742

The Board of Governors of the Federal Reserve System (``Board'') has adopted final amendments to its Regulation A to reflect the Board's approval of an increase in the rate for primary credit at each Federal Reserve Bank. The secondary credit rate at each Reserve Bank automatically increased by formula as a result of the Board's primary credit rate action.

Federal Register, Volume 82 Issue 73 (Tuesday, April 18, 2017)

[Federal Register Volume 82, Number 73 (Tuesday, April 18, 2017)]
[Rules and Regulations]
[Pages 18215-18216]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-07742]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 82, No. 73 / Tuesday, April 18, 2017 / Rules 
and Regulations

[[Page 18215]]



FEDERAL RESERVE SYSTEM

12 CFR Part 201

[Docket No. R-1562]
RIN 7100-AE76


Regulation A: Extensions of Credit by Federal Reserve Banks

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule.

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SUMMARY: The Board of Governors of the Federal Reserve System 
(``Board'') has adopted final amendments to its Regulation A to reflect 
the Board's approval of an increase in the rate for primary credit at 
each Federal Reserve Bank. The secondary credit rate at each Reserve 
Bank automatically increased by formula as a result of the Board's 
primary credit rate action.

DATES: The amendments to part 201 (Regulation A) are effective April 
18, 2017. The rate changes for primary and secondary credit were 
applicable on March 16, 2017.

FOR FURTHER INFORMATION CONTACT: Clinton Chen, Attorney (202-452-3952), 
or Sophia Allison, Special Counsel, (202-452-3565), Legal Division, or 
Lyle Kumasaka, Senior Financial Analyst (202-452-2382); for users of 
Telecommunications Device for the Deaf (TDD) only, contact 202-263-
4869; Board of Governors of the Federal Reserve System, 20th and C 
Streets NW., Washington, DC 20551.

SUPPLEMENTARY INFORMATION: The Federal Reserve Banks make primary and 
secondary credit available to depository institutions as a backup 
source of funding on a short-term basis, usually overnight. The primary 
and secondary credit rates are the interest rates that the twelve 
Federal Reserve Banks charge for extensions of credit under these 
programs. In accordance with the Federal Reserve Act, the primary and 
secondary credit rates are established by the boards of directors of 
the Federal Reserve Banks, subject to the review and determination of 
the Board.
    On March 15, 2017, the Board voted to approve a \1/4\ percentage 
point increase in the primary credit rate in effect at each of the 
twelve Federal Reserve Banks, thereby increasing from 1.25 percent to 
1.50 percent the rate that each Reserve Bank charges for extensions of 
primary credit. In addition, the Board had previously approved to renew 
the formula for the secondary credit rate, the primary credit rate plus 
50 basis points, on March 6, 2017. Under the formula, the secondary 
credit rate in effect at each of the twelve Federal Reserve Banks 
increased by \1/4\ percentage point as a result of the Board's primary 
credit rate action, thereby increasing from 1.75 percent to 2.00 
percent the rate that each Reserve Bank charges for extensions of 
secondary credit. The amendments to Regulation A reflect these rate 
changes.
    The \1/4\ percentage point increase in the primary credit rate was 
associated with an increase in the target range for the federal funds 
rate (from a target range of \1/2\ to \3/4\ percent to a target range 
of \3/4\ to 1 percent) announced by the Federal Open Market Committee 
(``Committee'') on March 15, 2017, as described in the Board's 
amendment of its Regulation D published elsewhere in this Federal 
Register.

Administrative Procedure Act

    In general, the Administrative Procedure Act (12 U.S.C. 551 et 
seq.) (``APA'') imposes three principal requirements when an agency 
promulgates legislative rules (rules made pursuant to congressionally 
delegated authority): (1) Publication with adequate notice of a 
proposed rule; (2) followed by a meaningful opportunity for the public 
to comment on the rule's content; and (3) publication of the final rule 
not less than 30 days before its effective date. The APA provides that 
notice and comment procedures do not apply if the agency for good cause 
finds them to be ``unnecessary, impracticable, or contrary to the 
public interest.'' 12 U.S.C. 553(b)(3)(A). Section 553(d) of the APA 
also provides that publication not less than 30 days prior to a rule's 
effective date is not required for (1) a substantive rule which grants 
or recognizes an exemption or relieves a restriction; (2) interpretive 
rules and statements of policy; or (3) an agency finding good cause for 
shortened notice and publishing its reasoning with the rule. 12 U.S.C. 
553(d). The APA further provides that the notice, public comment, and 
delayed effective date requirements of 5 U.S.C. 553 do not apply ``to 
the extent that there is involved . . . a matter relating to agency 
management or personnel or to public property, loans, grants, benefits, 
or contracts.'' 5 U.S.C. 553(a)(2) (emphasis added).
    Regulation A establishes the interest rates that the twelve Reserve 
Banks charge for extensions of primary credit and secondary credit. The 
Board has determined that the notice, public comment, and delayed 
effective date requirements of the APA do not apply to the final 
amendments to Regulation A for several reasons. The amendments involve 
a matter relating to loans, and are therefore exempt under the terms of 
the APA. In addition, the Board has determined that notice, public 
comment, and delayed effective date would be unnecessary and contrary 
to the public interest because delay in implementation of changes to 
the rates charged on primary credit and secondary credit would permit 
insured depository institutions to profit improperly from the 
difference in the current rate and the announced increased rate. 
Finally, because delay would undermine the Board's action in responding 
to economic data and conditions, the Board has determined that ``good 
cause'' exists within the meaning of the APA to dispense with the 
notice, public comment, and delayed effective date procedures of the 
APA with respect to the final amendments to Regulation A.

Regulatory Flexibility Analysis

    The Regulatory Flexibility Act (``RFA'') does not apply to a 
rulemaking where a general notice of proposed rulemaking is not 
required.\1\ As noted previously, a general notice of proposed 
rulemaking is not required if the final rule involves a matter relating 
to loans. Furthermore, the Board has determined that it is unnecessary 
and contrary to the public interest to publish a general notice of 
proposed rulemaking for this final rule. Accordingly, the RFA's

[[Page 18216]]

requirements relating to an initial and final regulatory flexibility 
analysis do not apply.
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    \1\ 5 U.S.C. 603 and 604.
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Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act (``PRA'') of 1995 
(44 U.S.C. 3506; 5 CFR part 1320, appendix A.1), the Board reviewed the 
final rule under the authority delegated to the Board by the Office of 
Management and Budget. The final rule contains no requirements subject 
to the PRA.

12 CFR Chapter II

List of Subjects in 12 CFR Part 201

    Banks, Banking, Federal Reserve System, Reporting and recordkeeping 
requirements.

Authority and Issuance

    For the reasons set forth in the preamble, the Board is amending 12 
CFR chapter II to read as follows:

PART 201--EXTENSIONS OF CREDIT BY FEDERAL RESERVE BANKS (REGULATION 
A)

0
 1. The authority citation for part 201 continues to read as follows:

    Authority: 12 U.S.C. 248(i)-(j), 343 et seq., 347a, 347b, 347c, 
348 et seq., 357, 374, 374a, and 461.

0
 2. In Sec.  201.51, paragraphs (a) and (b) are revised to read as 
follows:


Sec.  201.51  Interest rates applicable to credit extended by a Federal 
Reserve Bank.\3\
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    \3\ The primary, secondary, and seasonal credit rates described 
in this section apply to both advances and discounts made under the 
primary, secondary, and seasonal credit programs, respectively.
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    (a) Primary credit. The interest rate at each Federal Reserve Bank 
for primary credit provided to depository institutions under Sec.  
201.4(a) is 1.50 percent.
    (b) Secondary credit. The interest rate at each Federal Reserve 
Bank for secondary credit provided to depository institutions under 
Sec.  201.4(b) is 2.00 percent.
* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, April 12, 2017.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2017-07742 Filed 4-17-17; 8:45 am]
BILLING CODE 6210-02-P

18215

Rules and Regulations Federal Register
Vol. 82, No. 73

Tuesday, April 18, 2017

This section of the FEDERAL REGISTER the Federal Reserve Banks, subject to interpretive rules and statements of
contains regulatory documents having general the review and determination of the policy; or (3) an agency finding good
applicability and legal effect, most of which Board. cause for shortened notice and
are keyed to and codified in the Code of On March 15, 2017, the Board voted publishing its reasoning with the rule.
Federal Regulations, which is published under 12 U.S.C. 553(d). The APA further
to approve a 1⁄4 percentage point
50 titles pursuant to 44 U.S.C. 1510.
increase in the primary credit rate in provides that the notice, public
The Code of Federal Regulations is sold by effect at each of the twelve Federal comment, and delayed effective date
the Superintendent of Documents. Reserve Banks, thereby increasing from requirements of 5 U.S.C. 553 do not
1.25 percent to 1.50 percent the rate that apply ‘‘to the extent that there is
each Reserve Bank charges for involved . . . a matter relating to agency
FEDERAL RESERVE SYSTEM extensions of primary credit. In management or personnel or to public
addition, the Board had previously property, loans, grants, benefits, or
12 CFR Part 201 approved to renew the formula for the contracts.’’ 5 U.S.C. 553(a)(2) (emphasis
[Docket No. R–1562] secondary credit rate, the primary credit added).
rate plus 50 basis points, on March 6, Regulation A establishes the interest
RIN 7100–AE76
2017. Under the formula, the secondary rates that the twelve Reserve Banks
Regulation A: Extensions of Credit by credit rate in effect at each of the twelve charge for extensions of primary credit
Federal Reserve Banks Federal Reserve Banks increased by 1⁄4 and secondary credit. The Board has
percentage point as a result of the determined that the notice, public
AGENCY: Board of Governors of the Board’s primary credit rate action, comment, and delayed effective date
Federal Reserve System. thereby increasing from 1.75 percent to requirements of the APA do not apply
ACTION: Final rule. 2.00 percent the rate that each Reserve to the final amendments to Regulation A
Bank charges for extensions of for several reasons. The amendments
SUMMARY: The Board of Governors of the secondary credit. The amendments to involve a matter relating to loans, and
Federal Reserve System (‘‘Board’’) has Regulation A reflect these rate changes. are therefore exempt under the terms of
adopted final amendments to its the APA. In addition, the Board has
The 1⁄4 percentage point increase in
Regulation A to reflect the Board’s determined that notice, public
the primary credit rate was associated
approval of an increase in the rate for comment, and delayed effective date
with an increase in the target range for
primary credit at each Federal Reserve would be unnecessary and contrary to
the federal funds rate (from a target
Bank. The secondary credit rate at each the public interest because delay in
range of 1⁄2 to 3⁄4 percent to a target
Reserve Bank automatically increased implementation of changes to the rates
range of 3⁄4 to 1 percent) announced by
by formula as a result of the Board’s charged on primary credit and
the Federal Open Market Committee
primary credit rate action. secondary credit would permit insured
(‘‘Committee’’) on March 15, 2017, as
DATES: The amendments to part 201 described in the Board’s amendment of depository institutions to profit
(Regulation A) are effective April 18, its Regulation D published elsewhere in improperly from the difference in the
2017. The rate changes for primary and this Federal Register. current rate and the announced
secondary credit were applicable on increased rate. Finally, because delay
March 16, 2017. Administrative Procedure Act would undermine the Board’s action in
FOR FURTHER INFORMATION CONTACT: In general, the Administrative responding to economic data and
Clinton Chen, Attorney (202–452–3952), Procedure Act (12 U.S.C. 551 et seq.) conditions, the Board has determined
or Sophia Allison, Special Counsel, (‘‘APA’’) imposes three principal that ‘‘good cause’’ exists within the
(202–452–3565), Legal Division, or Lyle requirements when an agency meaning of the APA to dispense with
Kumasaka, Senior Financial Analyst promulgates legislative rules (rules the notice, public comment, and
(202–452–2382); for users of made pursuant to congressionally delayed effective date procedures of the
Telecommunications Device for the Deaf delegated authority): (1) Publication APA with respect to the final
(TDD) only, contact 202–263–4869; with adequate notice of a proposed rule; amendments to Regulation A.
Board of Governors of the Federal (2) followed by a meaningful
Reserve System, 20th and C Streets Regulatory Flexibility Analysis
opportunity for the public to comment
NW., Washington, DC 20551. on the rule’s content; and (3) The Regulatory Flexibility Act
SUPPLEMENTARY INFORMATION: The publication of the final rule not less (‘‘RFA’’) does not apply to a rulemaking
Federal Reserve Banks make primary than 30 days before its effective date. where a general notice of proposed
and secondary credit available to The APA provides that notice and rulemaking is not required.1 As noted
depository institutions as a backup comment procedures do not apply if the previously, a general notice of proposed
source of funding on a short-term basis, agency for good cause finds them to be rulemaking is not required if the final
usually overnight. The primary and ‘‘unnecessary, impracticable, or contrary rule involves a matter relating to loans.
secondary credit rates are the interest to the public interest.’’ 12 U.S.C. Furthermore, the Board has determined
nlaroche on DSK30NT082PROD with RULES

rates that the twelve Federal Reserve 553(b)(3)(A). Section 553(d) of the APA that it is unnecessary and contrary to
Banks charge for extensions of credit also provides that publication not less the public interest to publish a general
under these programs. In accordance than 30 days prior to a rule’s effective notice of proposed rulemaking for this
with the Federal Reserve Act, the date is not required for (1) a substantive final rule. Accordingly, the RFA’s
primary and secondary credit rates are rule which grants or recognizes an
established by the boards of directors of exemption or relieves a restriction; (2) 15 U.S.C. 603 and 604.

VerDate Sep<11>2014 13:31 Apr 17, 2017 Jkt 241001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\18APR1.SGM 18APR1

Document Created: 2017-04-18 00:00:26
Document Modified: 2017-04-18 00:00:26

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule.
Dates		The amendments to part 201 (Regulation A) are effective April 18, 2017. The rate changes for primary and secondary credit were applicable on March 16, 2017.
Contact		Clinton Chen, Attorney (202-452-3952), or Sophia Allison, Special Counsel, (202-452-3565), Legal Division, or Lyle Kumasaka, Senior Financial Analyst (202-452-2382); for users of Telecommunications Device for the Deaf (TDD) only, contact 202-263- 4869; Board of Governors of the Federal Reserve System, 20th and C Streets NW., Washington, DC 20551.
FR Citation		82 FR 18215
RIN Number		7100-AE76
CFR Associated		Banks; Banking; Federal Reserve System and Reporting and Recordkeeping Requirements