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.

Rules and Regulations Federal Register

22811 

Vol. 87, No. 74 

Monday, April 18, 2022 

1 5 U.S.C. 551 et seq. 

2 5 U.S.C. 553(b)(3)(A). 

3 5 U.S.C. 553(d). 

4 5 U.S.C. 553(a)(2) (emphasis added). 

5 5 U.S.C. 603, 604. 

FEDERAL RESERVE SYSTEM 

12 CFR Part 201 

[Docket No. R–1767] 

RIN 7100–AG 27 

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 

regulations 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: 

Effective date: The amendments to 

part 201 (Regulation A) are effective 

April 18, 2022. 

Applicability date: The rate changes 

for primary and secondary credit were 

applicable on March 17, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Sophia H. Allison, Senior Special 

Counsel (202–452–3565), Legal 

Division, or Lyle Kumasaka, Lead 

Financial Institution & Policy Analyst 

(202–452–2382), or Laura Lipscomb, 

Deputy Associate Director (202–912– 

7964), Division of Monetary Affairs; for 

users of telephone systems via text 

telephone (TTY) or any TTY-based 

Telecommunications Relay Services 

(TRS), please call 711 from any 

telephone, anywhere in the United 

States; 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 

review and determination of the Board. 

On March 16, 2022, the Board voted 

to approve a 0.25 percentage point 

increase in the primary credit rate in 

effect at each of the twelve Federal 

Reserve Banks, thereby increasing from 

0.25 percent to 0.50 percent the rate that 

each Reserve Bank charges for 

extensions of primary credit. In 

addition, the Board had previously 

approved the renewal of the secondary 

credit rate formula, 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 0.25 

percentage points as a result of the 

Board’s primary credit rate action, 

thereby increasing from 0.75 percent to 

1.00 percent the rate that each Reserve 

Bank charges for extensions of 

secondary credit. The amendments to 

Regulation A reflect these rate changes. 

The 0.25 percentage point increase in 

the primary credit rate was associated 

with a 0.25 percentage point increase in 

the target range for the federal funds rate 

(from a target range of zero percent to 

1⁄4 percent to a target range of 1⁄4 percent 

to 1⁄2 percent) announced by the Federal 

Open Market Committee on March 16, 

2022, as described in the Board’s 

amendment of its Regulation D 

published elsewhere in this issue of the 

Federal Register. 

Administrative Procedure Act 

In general, the Administrative 

Procedure Act (‘‘APA’’) 1 imposes three 

principal requirements when an agency 

promulgates legislative rules (rules 

made pursuant to Congressionallydelegated 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.’’ 2 Section 553(d) 

of the APA also provides that 

publication at least 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) a rule for 

which the agency finds good cause for 

shortened notice and publishes its 

reasoning with the rule.3 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.’’ 4

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 these final amendments to Regulation 

A. The amendments involve a matter 

relating to loans and are therefore 

exempt under the terms of the APA. 

Furthermore, 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.5 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. 


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22812 Federal Register / Vol. 87, No. 74 / Monday, April 18, 2022 / Rules and Regulations 

6 44 U.S.C. 3506; see 5 CFR part 1320, appendix 

A.1. 3The 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. 

1 12 U.S.C. 461(b). In March 2020, the Board set 

all reserve requirement ratios to zero percent. See 

Interim Final Rule, 85 FR16525 (Mar. 24, 2020); 

Final Rule, 86 FR 8853 (Feb. 10, 2021). 

2 12 CFR 204.5(a)(1). 

3 12 U.S.C. 461(b)(1)(A) & (b)(12)(A). 

4See 12 U.S.C. 461(b)(1)(A) & (b)(12)(C); see also 

12 CFR 204.2(y). 

5See 12 U.S.C. 461(b)(12)(B). 

6See 12 CFR 204.10(b)(1). 

7 5 U.S.C. 551 et seq. 

8 5 U.S.C. 553(b)(3)(A). 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act (‘‘PRA’’) of 1995,6 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 chapter II to read as follows: 

PART 201—EXTENSIONS OF CREDIT 

BY FEDERAL RESERVE BANKS 

(REGULATION A) 

■ 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. 

■ 2. In § 201.51, paragraphs (a) and (b) 

are revised to read as follows: 

§ 201.51 Interest rates applicable to credit 

extended by a Federal Reserve Bank.3

(a) Primary credit. The interest rate at 

each Federal Reserve Bank for primary 

credit provided to depository 

institutions under § 201.4(a) is 0.50 

percent. 

(b) Secondary credit. The interest rate 

at each Federal Reserve Bank for 

secondary credit provided to depository 

institutions under § 201.4(b) is 1.00 

percent. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System. 

Ann E. Misback, 

Secretary of the Board. 

[FR Doc. 2022–08254 Filed 4–15–22; 8:45 am] 

BILLING CODE P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 204 

[Docket No. R–1768] 

RIN 7100–AG28 

Regulation D: Reserve Requirements 

of Depository Institutions 

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 

regulations to revise the rate of interest 

paid on balances (‘‘IORB’’) maintained 

at Federal Reserve Banks by or on behalf 

of eligible institutions. The final 

amendments specify that IORB is 0.40 

percent, a 0.25 percentage point 

increase from its prior level. The 

amendment is intended to enhance the 

role of IORB in maintaining the federal 

funds rate in the target range established 

by the Federal Open Market Committee 

(‘‘FOMC’’ or ‘‘Committee’’). 

DATES: 

Effective date: The amendments to 

part 204 (Regulation D) are effective 

April 18, 2022. 

Applicability date: The IORB rate 

change was applicable on March 17, 

2022. 

FOR FURTHER INFORMATION CONTACT: 

Sophia H. Allison, Senior Special 

Counsel (202–452–3565), Legal 

Division, or Francis Martinez, Lead 

Financial Institution & Policy Analyst 

(202–245–4217), or Laura Lipscomb, 

Deputy Associate Director (202–834– 

2979), Division of Monetary Affairs; for 

users of telephone systems via text 

telephone (TTY) or any TTY-based 

Telecommunications Relay Services 

(TRS), please call 711 from any 

telephone, anywhere in the United 

States; Board of Governors of the 

Federal Reserve System, 20th and C 

Streets NW, Washington, DC 20551. 

SUPPLEMENTARY INFORMATION: 

I. Statutory and Regulatory Background 

For monetary policy purposes, section 

19 of the Federal Reserve Act (‘‘Act’’) 

imposes reserve requirements on certain 

types of deposits and other liabilities of 

depository institutions.1 Regulation D, 

which implements section 19 of the Act, 

requires that a depository institution 

meet reserve requirements by holding 

cash in its vault, or if vault cash is 

insufficient, by maintaining a balance in 

an account at a Federal Reserve Bank 

(‘‘Reserve Bank’’).2 Section 19 also 

provides that balances maintained by or 

on behalf of certain institutions in an 

account at a Reserve Bank may receive 

earnings to be paid by the Reserve Bank 

at least once each quarter, at a rate or 

rates not to exceed the general level of 

short-term interest rates.3 Institutions 

that are eligible to receive earnings on 

their balances held at Reserve Banks 

(‘‘eligible institutions’’) include 

depository institutions and certain other 

institutions.4 Section 19 also provides 

that the Board may prescribe regulations 

concerning the payment of earnings on 

balances at a Reserve Bank.5 Prior to 

these amendments, Regulation D 

established IORB at 0.15 percent.6

II. Amendment to IORB 

The Board is amending § 204.10(b)(1) 

of Regulation D to establish IORB at 0.40 

percent. The amendment represents a 

0.25 percentage point increase in IORB. 

This decision was announced on March 

16, 2022, with an effective date of 

March 17, 2022, in the Federal Reserve 

Implementation Note that accompanied 

the FOMC’s statement on March 16, 

2022. The FOMC statement stated that 

the Committee decided to raise the 

target range for the federal funds rate to 

1⁄4 to 1⁄2 percent. 

A Federal Reserve Implementation 

note stated: 

The Board of Governors of the Federal 

Reserve System voted unanimously to raise 

the interest rate paid on reserve balances to 

0.4 percent, effective March 17, 2022. 

As a result, the Board is amending 

§ 204.10(b)(1) of Regulation D to 

establish IORB at 0.40 percent. 

III. Administrative Procedure Act 

In general, the Administrative 

Procedure Act (‘‘APA’’) 7 imposes three 

principal requirements when an agency 

promulgates legislative rules (rules 

made pursuant to Congressionallydelegated 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.’’ 8 Section 553(d) 

of the APA also provides that 

publication at least 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) a rule for 

which the agency finds good cause for 


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