82 FR 28755 - Regulation A: Extensions of Credit by Federal Reserve Banks
FEDERAL RESERVE SYSTEM Federal Register Volume 82, Issue 121 (June 26, 2017)
Federal Register Volume 82, Issue 121 (June 26, 2017)
| Page Range | 28755-28756 | |
| FR Document | 2017-13106 |
[Federal Register Volume 82, Number 121 (Monday, June 26, 2017)] [Rules and Regulations] [Pages 28755-28756] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-13106] ======================================================================= ----------------------------------------------------------------------- FEDERAL RESERVE SYSTEM 12 CFR Part 201 [Docket No. R-1565; RIN 7100 AE-79] Regulation A: Extensions of Credit by Federal Reserve Banks AGENCY: Board of Governors of the Federal Reserve System. ACTION: Final rule. ----------------------------------------------------------------------- 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: This rule is effective June 26, 2017. The rate changes for primary and secondary credit were applicable beginning June 15, 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 [[Page 28756]] 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 June 14, 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 1.50 percent to 1.75 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. 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 2.00 percent to 2.25 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 \3/4\ to 1 percent to a target range of 1 to 1\1/4\ percent) announced by the Federal Open Market Committee (``Committee'') on June 14, 2017, as described in the Board's amendment of its Regulation D published elsewhere in today's 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 requirements relating to an initial and final regulatory flexibility analysis do not apply. --------------------------------------------------------------------------- \1\ 5 U.S.C. 603 and 604. --------------------------------------------------------------------------- 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. List of Subjects in 12 CFR Part 201 Banks, Banking, Federal Reserve System, Reporting and recordkeeping. Authority and Issuance For the reasons set forth in the preamble, the Board is amending 12 CFR part 201 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.\2\ --------------------------------------------------------------------------- \2\ 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. --------------------------------------------------------------------------- (a) Primary credit. The interest rate at each Federal Reserve Bank for primary credit provided to depository institutions under Sec. 201.4(a) is 1.75 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 2.25 percent. * * * * * By order of the Board of Governors of the Federal Reserve System, June 19, 2017. Ann E. Misback, Secretary of the Board. [FR Doc. 2017-13106 Filed 6-23-17; 8:45 am] BILLING CODE 6210-02-P
![Federal Register / Vol. 82, No. 121 / Monday, June 26, 2017 / Rules and Regulations 28755
Board’s recommendation for extending impact imports have had on the market Authority: 7 U.S.C. 601–674.
the time from one year to three years for for domestic tart cherries and then ■ 2. Section 930.151 is revised to read
new product and new market account for that impact in the OSF. as follows:
exemptions that was implemented in As previously stated, there are more
the previous season. As mentioned than 309 million pounds of tart cherries § 930.151 Desirable carry-out inventory.
previously, the Board has recommended available for free sales for 2016–17. This For the 2016 crop year, the desirable
a further expansion of the timeframe. volume exceeds total sales from 2015– carry-out inventory, for the purposes of
The additional time will allow 16 of both free and restricted cherries of determining an optimum supply
opportunity for more cherries to qualify 288 million pounds. Further, the order volume, will be 57 million pounds.
for exemption in response to the level provides numerous alternatives for the ■ 3. Section 930.256 is revised to read
of imported cherry products. use of restricted fruit, such as handler as follows:
One commenter referenced the diversion, for complying with the
opportunities available to use both in- recommended restriction. Additionally, § 930.256 Free and restricted percentages
orchard and post-harvest diversion to the USDA announced the intent to for the 2016–17 crop year.
comply with a restriction. The purchase over 10 million pounds of The percentages for tart cherries
commenter stated the Federal marketing cherry products in the 2016–2017 handled by handlers during the crop
order provides major incentive to season as surplus purchases. Therefore, year beginning on July 1, 2016, which
expand sales by using restricted fruit to as stated in the RFA, it is not shall be free and restricted, respectively,
serve new markets, new products, and anticipated that this action will unduly are designated as follows: Free
exports. Additionally, there is incentive burden growers or handlers. percentage, 71 percent and restricted
in place for growers to divert excess Accordingly, no changes will be made percentage, 29 percent.
fruit where there is no market or where to the rule as proposed, based on the Dated: June 20, 2017.
the cost associated with marketing the comments received. Bruce Summers,
fruit may not increase returns. Growers A small business guide on complying Acting Administrator, Agricultural Marketing
who choose to divert in the orchard can with fruit, vegetable, and specialty crop Service.
be issued certificates by the Board that marketing agreements and orders may [FR Doc. 2017–13241 Filed 6–23–17; 8:45 am]
can be sold to handlers to meet their be viewed at: http://www.ams.usda.gov/
BILLING CODE 3410–02–P
restriction requirements. rules-regulations/moa/small-businesses.
One commenter noted the Board felt Any questions about the compliance
the final calculations were appropriate. guide should be sent to Richard Lower
They also stated that the majority of the at the previously mentioned address in FEDERAL RESERVE SYSTEM
industry approved the order in its last the FOR FURTHER INFORMATION CONTACT
referendum, believing that the order 12 CFR Part 201
section.
brings more returns to growers. Another After consideration of all relevant [Docket No. R–1565; RIN 7100 AE–79]
proponent noted, even with the matter presented, including the
restriction, sales are not being lost due information and recommendation Regulation A: Extensions of Credit by
to lack of available unrestricted cherries. submitted by the Committee and other Federal Reserve Banks
The carry-in from July 2016 (81 million available information, it is hereby found AGENCY: Board of Governors of the
lbs.) and the projected availability of that this rule, as hereinafter set forth, Federal Reserve System.
free market carry-out (57 million lbs.) will tend to effectuate the declared
indicate the restriction is not a factor in ACTION: Final rule.
policy of the Act.
limiting sales of tart cherry products. It is further found that good cause SUMMARY: The Board of Governors of the
The Board deliberated thoroughly on exists for not postponing the effective Federal Reserve System (‘‘Board’’) has
whether or not to make an additional date of this rule until 30 days after adopted final amendments to its
economic adjustment to account for publication in the Federal Register (5 Regulation A to reflect the Board’s
imported cherry products. However, no U.S.C. 553) because handlers are already approval of an increase in the rate for
motion was made for an additional shipping tart cherries from the 2016–17 primary credit at each Federal Reserve
adjustment to reflect the impact of crop. Further, handlers are aware of this Bank. The secondary credit rate at each
imported cherry products. As one rule, which was recommended at a Reserve Bank automatically increased
commenter noted, there is a lack of public meeting. Also, a 30-day comment by formula as a result of the Board’s
consensus on how to factor imports into period was provided for in the proposed primary credit rate action.
the final calculation. rule.
Further, according to Foreign DATES: This rule is effective June 26,
Agricultural Service’s GATS database, List of Subjects in 7 CFR Part 930 2017. The rate changes for primary and
though imported cherry products secondary credit were applicable
Marketing agreements, Reporting and beginning June 15, 2017.
remained high (230 million lbs. recordkeeping requirements, Tart
equivalent) during the 2016 calendar FOR FURTHER INFORMATION CONTACT:
cherries.
year, the volume is down from the 2015 Clinton Chen, Attorney (202/452–3952),
For the reasons set forth in the or Sophia Allison, Special Counsel,
calendar year (267 million lbs. preamble, 7 CFR part 930 is amended as
equivalent) and also below the 2014 (202/452–3565), Legal Division, or Lyle
follows: Kumasaka, Senior Financial Analyst
calendar year (244 million lbs.
equivalent). The final NASS prices for PART 930—TART CHERRIES GROWN (202/452–2382); for users of
sradovich on DSK3GMQ082PROD with RULES
the 2016 season are not yet available, IN THE STATES OF MICHIGAN, NEW Telecommunications Device for the Deaf
but from 2013–15, grower prices were YORK, PENNSYLVANIA, OREGON, (TDD) only, contact 202/263–4869;
stable, ranging from $0.34 to $0.36 per UTAH, WASHINGTON, AND Board of Governors of the Federal
pound. Thus, when using available WISCONSIN Reserve System, 20th and C Streets
sales, utilization, and price data from NW., Washington, DC 20551.
previous years it is difficult to ■ 1. The authority citation for 7 CFR SUPPLEMENTARY INFORMATION: The
determine what, if any, specific negative part 930 continues to read as follows: Federal Reserve Banks make primary
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![28756 Federal Register / Vol. 82, No. 121 / Monday, June 26, 2017 / Rules and Regulations
and secondary credit available to than 30 days prior to a rule’s effective final regulatory flexibility analysis do
depository institutions as a backup date is not required for (1) a substantive not apply.
source of funding on a short-term basis, rule which grants or recognizes an
usually overnight. The primary and exemption or relieves a restriction; (2) Paperwork Reduction Act
secondary credit rates are the interest interpretive rules and statements of In accordance with the Paperwork
rates that the twelve Federal Reserve policy; or (3) an agency finding good Reduction Act (‘‘PRA’’) of 1995 (44
Banks charge for extensions of credit cause for shortened notice and U.S.C. 3506; 5 CFR part 1320 Appendix
under these programs. In accordance publishing its reasoning with the rule. A.1), the Board reviewed the final rule
with the Federal Reserve Act, the 12 U.S.C. 553(d). The APA further
primary and secondary credit rates are under the authority delegated to the
provides that the notice, public
established by the boards of directors of Board by the Office of Management and
comment, and delayed effective date
the Federal Reserve Banks, subject to Budget. The final rule contains no
requirements of 5 U.S.C. 553 do not
the review and determination of the requirements subject to the PRA.
apply ‘‘to the extent that there is
Board. involved . . . a matter relating to agency List of Subjects in 12 CFR Part 201
On June 14, 2017, the Board voted to management or personnel or to public
approve a 1⁄4 percentage point increase property, loans, grants, benefits, or Banks, Banking, Federal Reserve
in the primary credit rate in effect at contracts.’’ 5 U.S.C. 553(a)(2) (emphasis System, Reporting and recordkeeping.
each of the twelve Federal Reserve added).
Banks, thereby increasing from 1.50 Authority and Issuance
percent to 1.75 percent the rate that Regulation A establishes the interest
rates that the twelve Reserve Banks For the reasons set forth in the
each Reserve Bank charges for
extensions of primary credit. In charge for extensions of primary credit preamble, the Board is amending 12
addition, the Board had previously and secondary credit. The Board has CFR part 201 as follows:
approved to renew the formula for the determined that the notice, public
comment, and delayed effective date PART 201—EXTENSIONS OF CREDIT
secondary credit rate, the primary credit
rate plus 50 basis points. Under the requirements of the APA do not apply BY FEDERAL RESERVE BANKS
formula, the secondary credit rate in to the final amendments to Regulation A (REGULATION A)
effect at each of the twelve Federal for several reasons. The amendments
Reserve Banks increased by 1⁄4 involve a matter relating to loans, and ■ 1. The authority citation for part 201
percentage point as a result of the are therefore exempt under the terms of continues to read as follows:
Board’s primary credit rate action, the APA. In addition, the Board has Authority: 12 U.S.C. 248(i)–(j), 343 et seq.,
thereby increasing from 2.00 percent to determined that notice, public 347a, 347b, 347c, 348 et seq., 357, 374, 374a,
2.25 percent the rate that each Reserve comment, and delayed effective date and 461.
Bank charges for extensions of would be unnecessary and contrary to
secondary credit. The amendments to the public interest because delay in ■ 2. In § 201.51, paragraphs (a) and (b)
Regulation A reflect these rate changes. implementation of changes to the rates are revised to read as follows:
The 1⁄4 percentage point increase in charged on primary credit and § 201.51 Interest rates applicable to credit
the primary credit rate was associated secondary credit would permit insured extended by a Federal Reserve Bank.2
with an increase in the target range for depository institutions to profit
the federal funds rate (from a target improperly from the difference in the (a) Primary credit. The interest rate at
range of 3⁄4 to 1 percent to a target range current rate and the announced each Federal Reserve Bank for primary
of 1 to 11⁄4 percent) announced by the increased rate. Finally, because delay credit provided to depository
Federal Open Market Committee would undermine the Board’s action in institutions under § 201.4(a) is 1.75
(‘‘Committee’’) on June 14, 2017, as responding to economic data and percent.
described in the Board’s amendment of conditions, the Board has determined
its Regulation D published elsewhere in (b) Secondary credit. The interest rate
that ‘‘good cause’’ exists within the at each Federal Reserve Bank for
today’s Federal Register. meaning of the APA to dispense with secondary credit provided to depository
Administrative Procedure Act the notice, public comment, and institutions under § 201.4(b) is 2.25
In general, the Administrative delayed effective date procedures of the percent.
Procedure Act (12 U.S.C. 551 et seq.) APA with respect to the final
amendments to Regulation A. * * * * *
(‘‘APA’’) imposes three principal
requirements when an agency By order of the Board of Governors of the
Regulatory Flexibility Analysis Federal Reserve System, June 19, 2017.
promulgates legislative rules (rules
made pursuant to congressionally The Regulatory Flexibility Act Ann E. Misback,
delegated authority): (1) Publication (‘‘RFA’’) does not apply to a rulemaking Secretary of the Board.
with adequate notice of a proposed rule; where a general notice of proposed [FR Doc. 2017–13106 Filed 6–23–17; 8:45 am]
(2) followed by a meaningful rulemaking is not required.1 As noted BILLING CODE 6210–02–P
opportunity for the public to comment previously, a general notice of proposed
on the rule’s content; and (3) rulemaking is not required if the final
publication of the final rule not less rule involves a matter relating to loans.
than 30 days before its effective date. Furthermore, the Board has determined
sradovich on DSK3GMQ082PROD with RULES
The APA provides that notice and that it is unnecessary and contrary to
comment procedures do not apply if the the public interest to publish a general
agency for good cause finds them to be notice of proposed rulemaking for this 2 The primary, secondary, and seasonal credit
‘‘unnecessary, impracticable, or contrary final rule. Accordingly, the RFA’s
rates described in this section apply to both
to the public interest.’’ 12 U.S.C. requirements relating to an initial and advances and discounts made under the primary,
553(b)(3)(A). Section 553(d) of the APA secondary, and seasonal credit programs,
also provides that publication not less 15 U.S.C. 603 and 604. respectively.
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Document Created: 2018-11-14 10:11:12
Document Modified: 2018-11-14 10:11:12
| 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 | This rule is effective June 26, 2017. The rate changes for primary and secondary credit were applicable beginning June 15, 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 28755 | |
| CFR Associated | Banks; Banking; Federal Reserve System and Reporting and Recordkeeping |
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