[Federal Register Volume 59, Number 166 (Monday, August 29, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-21212] [[Page Unknown]] [Federal Register: August 29, 1994] ======================================================================= ----------------------------------------------------------------------- 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. ----------------------------------------------------------------------- SUMMARY: The Board of Governors has amended its Regulation A on Extensions of Credit by Federal Reserve Banks to reflect its approval of an increase 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: These amendments to part 201 (Regulation A) were effective August 18, 1994. The rate changes for adjustment credit were effective on the dates specified in Sec. 201.51. FOR FURTHER INFORMATION CONTACT: William W. Wiles, Secretary of the Board (202/452-3257); for the hearing impaired only, Telecommunications Device for the Deaf (TDD) (202/452-3544), Dorothea Thompson, Board of Governors of the Federal Reserve System, 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 Bank's discretion, for extended credit. In increasing the basic discount rate, the Board acted on requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Richmond, Kansas City and Dallas. The new rates were effective on the dates specified below. The increase was made to keep inflationary pressures contained, and thereby foster sustainable economic growth. The provisions of 5 U.S.C. 553(b) relating to notice and public participation were not followed in connection with the adoption of this 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 maintaining sustained, noninflationary growth.1 --------------------------------------------------------------------------- \1\The Board's Rules of Procedure provide that advance notice and deferred effective date will ordinarily be omitted in the public interest for changes in discount rates. 12 CFR 262.2(e). --------------------------------------------------------------------------- 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. Regulatory Flexibility Act Analysis Pursuant to section 605(b) of the Regulatory Flexibility Act (5 U.S.C. 601-612), 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. Although the change increases the rate of interest charged to borrowers from Reserve Banks, the Board believes that the higher cost of funds is outweighed by the salutary effect on the economy. List of Subjects in 12 CFR Part 201 Banks, banking, Credit, Federal Reserve System. For the reasons outlined in the preamble, the Board of Governors amends 12 CFR part 201 as follows: 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: ------------------------------------------------------------------------ Federal reserve bank Rate Effective ------------------------------------------------------------------------ Boston.................................. 4.0 August 16, 1994. New York................................ 4.0 August 16, 1994. Philadelphia............................ 4.0 August 18, 1994. Cleveland............................... 4.0 August 17, 1994. Richmond................................ 4.0 August 16, 1994. Atlanta................................. 4.0 August 18, 1994. Chicago................................. 4.0 August 16, 1994. St. Louis............................... 4.0 August 16, 1994. Minneapolis............................. 4.0 August 18, 1994. Kansas City............................. 4.0 August 16, 1994. Dallas.................................. 4.0 August 16, 1994. San Francisco........................... 4.0 August 17, 1994. ------------------------------------------------------------------------ By order of the Board of Governors of the Federal Reserve System, August 23, 1994. William W. Wiles, Secretary of the Board. [FR Doc. 94-21212 Filed 8-26-94; 8:45 am] BILLING CODE 6210-01-P