Source: https://www.federalregister.gov/documents/2001/09/26/01-24000/extensions-of-credit-by-federal-reserve-banks-change-in-discount-rate
Timestamp: 2016-12-05 02:50:11
Document Index: 259804003

Matched Legal Cases: ['art 201', 'art 201', 'ART 201', 'art 201', 'art 201', 'art 201', 'ART 201', 'art\n12', 'art2', '§\u2009201', '§\u2009201']

:: Extensions of Credit by Federal Reserve Banks; Change in Discount Rate
A Rule by the Federal Reserve System on 09/26/2001
The amendments to part 201 (Regulation A) were effective September 17, 2001. The rate changes for adjustment credit were effective on the dates specified in 12 CFR 201.51.
66 FR 49098
49098-49099
01-24000
Regulatory Flexibility Act Certification Administrative Procedure Act List of Subjects in 12 CFR Part 201 PART 201—EXTENSIONS OF CREDIT BY FEDERAL RESERVE BANKS (REGULATION A) Enhanced Content - Table of Contents Enhanced Content - Submit Public Comment
https://www.federalregister.gov/d/01-24000
The Board of Governors has amended its Regulation A, Extensions of Credit by Federal Reserve Banks to reflect its approval of a decrease 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. DATES:
The amendments to part 201 (Regulation A) were effective September 17, 2001. The rate changes for adjustment credit were effective on the dates specified in 12 CFR 201.51. Start Further Info
Jennifer J. Johnson, Secretary of the Board, at (202) 452-3259, Board of Governors of the Federal Reserve System, 20th and C Streets NW., Washington, DC 20551. End Further Info
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 Banks' discretion, for extended credit for up to 30 days. In decreasing the basic discount rate from 3.00 percent to 2.5 percent, the Board acted on requests submitted by the Boards of Directors of the twelve Federal Reserve Banks. The new rates were effective on the dates specified below. The 50-basis-point decrease in the discount rate was associated with a similar decrease in the federal funds rate approved by the Federal Open Market Committee (FOMC) and announced at the same time. In a joint press release announcing these actions, the FOMC and the Board of Governors stated that the Federal Reserve will continue to supply unusually large volumes of liquidity to the financial markets, as needed, until more normal market functioning is restored. As a consequence, the FOMC recognizes that the actual federal funds rate may be below its target on occasion in these unusual circumstances. Even before the tragic events of last week, employment, production, and business spending remained weak, and last week's events have the potential to damp spending further. Nonetheless, the long-term prospects for productivity growth and the economy remain favorable and should become evident once the unusual forces restraining demand abate. For the foreseeable future, the Board and the FOMC continue to believe that against the background of their long-run goals of price stability and sustainable economic growth and of the information currently available, the risks are weighted mainly toward conditions that may generate economic weakness. Regulatory Flexibility Act Certification Pursuant to section 605(b) of the Regulatory Flexibility Act (5 U.S.C. 605(b)), 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. The rule does not impose any additional requirements on entities affected by the regulation. Administrative Procedure Act The provisions of 5 U.S.C. 553(b) relating to notice and public participation were not followed in connection with the adoption of the 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 fostering price stability and sustainable economic growth. 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. Start List of Subjects
List of Subjects in 12 CFR Part 201 Banks
PART 201—EXTENSIONS OF CREDIT BY FEDERAL RESERVE BANKS (REGULATION A) End Part
12 U.S.C. 343 et seq., 347a, 347b, 347c, 347d, 348 et seq., 357, 374, 374a and 461.
Start Amendment Part2. Section 201.51 is revised to read as follows:End Amendment Part
§ 201.51 Adjustment credit for depository institutions. The rates for adjustment credit provided to depository institutions under § 201.3(a) are:
Federal Reserve BankRateEffectiveBoston2.5September 17, 2001.New York2.5September 17, 2001.Philadelphia2.5September 17, 2001.Cleveland2.5September 17, 2001.Richmond2.5September 17, 2001.Atlanta2.5September 17, 2001.Chicago2.5September 17, 2001.St. Louis2.5September 18, 2001.Start Printed Page 49099Minneapolis2.5September 17, 2001.Kansas City2.5September 17, 2001.Dallas2.5September 17, 2001.San Francisco2.5September 17, 2001.
By order of the Board of Governors of the Federal Reserve System, September 20, 2001. Jennifer J. Johnson, Secretary of the Board. End Signature
[FR Doc. 01-24000 Filed 9-25-01; 8:45 am] BILLING CODE 6210-01-P