Regulation A: Extensions of Credit by Federal Reserve Banks, 7635-7636 [2017-00612]
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Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Rules and Regulations
(4) Requests for a waiver or reduction
of fees should ordinarily be made when
the request is first submitted to the
agency and should address the criteria
referenced above. A requester may
submit a fee waiver request at a later
time so long as the underlying record
request is pending or on administrative
appeal. When a requester who has
committed to pay fees subsequently asks
for a waiver of those fees and that
waiver is denied, the requester must pay
any costs incurred up to the date the fee
waiver request was received.
■ 9. Amend § 304.10 by revising
paragraph (a) to read as follows:
§ 304.10
Preservation of records.
(a) The agency will preserve all
correspondence pertaining to the
requests that it receives under this
subpart, as well as copies of all
requested records, until disposition or
destruction is authorized by title 44 of
the United States Code or the National
Archives and Records Administration’s
General Records Schedule 4.2. Records
will not be disposed of while they are
the subject of a pending request, appeal,
or lawsuit under the FOIA.
*
*
*
*
*
Dated: January 11, 2017.
David M. Pritzker,
Deputy General Counsel.
[FR Doc. 2017–00891 Filed 1–19–17; 8:45 am]
BILLING CODE 6110–01–P
FEDERAL RESERVE SYSTEM
12 CFR Part 201
[Docket No. R–1558]
RIN 7100 AE–66
Regulation A: Extensions of Credit by
Federal Reserve Banks
Board of Governors of the
Federal Reserve System.
ACTION: Final rule.
AGENCY:
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 January 23,
2017. The rate changes for primary and
secondary credit were effective as
determined by the Board in its
December 14, 2016 announcement.
mstockstill on DSK3G9T082PROD with RULES
SUMMARY:
VerDate Sep<11>2014
18:54 Jan 19, 2017
Jkt 241001
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.
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 1.00 percent to 1.25
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 1.50 percent to
1.75 percent the rate that each Reserve
Bank charges for extensions of
secondary credit. The amendments to
Regulation A reflect these rate changes.
The rate changes for primary and
secondary credit were effective as
determined by the Board in its
December 14, 2016 announcement.1
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 1⁄4 to 1⁄2 percent to a target
range of 1⁄2 to 3⁄4 percent) announced by
the Federal Open Market Committee
(‘‘Committee’’) on December 14, 2016,
as described in the Board’s amendment
of its Regulation D published elsewhere
in today’s Federal Register.
1 Federal Reserve Implementation Note,
‘‘Decisions Regarding Monetary Policy
Implementation’’ (Dec. 14, 2016), https://
www.federalreserve.gov/newsevents/press/
monetary/20161214a1.htm.
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
7635
The presentation of the interest rates
for primary and secondary credit has
been changed in the Code of Federal
Regulations to improve clarity.
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. Accordingly, the
Board has determined that the notice,
public comment, and delayed effective
date requirements of 5 U.S.C. 553 do not
apply to the final amendments to
Regulation A because the amendments
involve a matter relating to loans. In
addition, the Board has determined that,
were the APA’s requirements for notice,
public comment, and delayed effective
date to apply to the final amendments
to Regulation A, those requirements
would be unnecessary and contrary to
the public interest. 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. Delay would also
undermine the Board’s action in
E:\FR\FM\23JAR1.SGM
23JAR1
7636
Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Rules and Regulations
responding to economic data and
conditions. For these reasons, the Board
has determined that ‘‘good cause’’
within the meaning of the APA exists to
dispense with the notice, public
comment, and delayed effective date
procedures of the APA with respect to
the final amendments to Regulation A.
institutions under § 201.4(a) is 1.25
percent.
(b) Secondary credit. The interest rate
at each Federal Reserve Bank for
secondary credit provided to depository
institutions under § 201.4(b) is 1.75
percent.
*
*
*
*
*
Regulatory Flexibility Analysis
The Regulatory Flexibility Act
(‘‘RFA’’) does not apply to a rulemaking
where a general notice of proposed
rulemaking is not required.2 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.
By order of the Board of Governors of the
Federal Reserve System, January 9, 2017.
Robert deV. Frierson,
Secretary of the Board.
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.
AGENCY:
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:
12 CFR CHAPTER II
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:
■
mstockstill on DSK3G9T082PROD with RULES
§ 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
25
U.S.C. 603 and 604.
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.
3 The
VerDate Sep<11>2014
18:54 Jan 19, 2017
Jkt 241001
[FR Doc. 2017–00612 Filed 1–19–17; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Docket No. R–1559]
RIN 7100 AE–67
Regulation D: Reserve Requirements
of Depository Institutions
Board of Governors of the
Federal Reserve System.
ACTION: Final rule.
The Board of Governors of the
Federal Reserve System (‘‘Board’’) is
amending Regulation D (Reserve
Requirements of Depository Institutions)
to revise the rate of interest paid on
balances maintained to satisfy reserve
balance requirements (‘‘IORR’’) and the
rate of interest paid on excess balances
(‘‘IOER’’) maintained at Federal Reserve
Banks by or on behalf of eligible
institutions. The final amendments
specify that IORR is 0.75 percent and
IOER is 0.75 percent, a 0.25 percentage
point increase from their prior levels.
The amendments are intended to
enhance the role of such rates of interest
in moving the Federal funds rate into
the target range established by the
Federal Open Market Committee
(‘‘FOMC’’ or ‘‘Committee’’).
DATES: The amendments to part 204
(Regulation D) are effective January 23,
2017. The IORR and IOER rate changes
were applicable on December 15, 2016,
as specified in 12 CFR 204.10(b)(5), as
amended.
FOR FURTHER INFORMATION CONTACT:
Clinton Chen, Attorney (202–452–3952),
or Sophia Allison, Special Counsel
(202–452–3198), Legal Division, or
Thomas Keating, Financial Analyst
(202–973–7401), or Laura Lipscomb,
Section Chief (202–973–7964), Division
of Monetary Affairs; 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.
SUMMARY:
PO 00000
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Fmt 4700
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SUPPLEMENTARY INFORMATION:
I. Statutory and Regulatory Background
For monetary policy purposes, section
19 of the Federal Reserve Act (‘‘the
Act’’) imposes reserve requirements on
certain types of deposits and other
liabilities of depository institutions.
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’’).1 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. Institutions
that are eligible to receive earnings on
their balances held at Reserve Banks
(‘‘eligible institutions’’) include
depository institutions and certain other
institutions.2 Section 19 also provides
that the Board may prescribe regulations
concerning the payment of earnings on
balances at a Reserve Bank.3 Prior to
these amendments, Regulation D
specified a rate of 0.50 percent for both
IORR and IOER.4
II. Amendments to IORR and IOER
The Board is amending § 204.10(b)(5)
of Regulation D to specify that IORR is
0.75 percent and IOER is 0.75 percent.
This 0.25 percentage point increase in
1 12
CFR 204.5(a)(1).
19(b)(1)(A) defines ‘‘depository
institution’’ as any insured bank as defined in
section 3 of the Federal Deposit Insurance Act or
any bank which is eligible to make application to
become an insured bank under section 5 of such
Act; any mutual savings bank as defined in section
3 of the Federal Deposit Insurance Act or any bank
which is eligible to make application to become an
insured bank under section 5 of such Act; any
savings bank as defined in section 3 of the Federal
Deposit Insurance Act or any bank which is eligible
to make application to become an insured bank
under section 5 of such Act; any insured credit
union as defined in section 101 of the Federal
Credit Union Act or any credit union which is
eligible to make application to become an insured
credit union pursuant to section 201 of such Act;
any member as defined in section 2 of the Federal
Home Loan Bank Act; [and] any savings association
(as defined in section 3 of the Federal Deposit
Insurance Act) which is an insured depository
institution (as defined in such Act) or is eligible to
apply to become an insured depository institution
under the Federal Deposit Insurance Act. See 12
U.S.C. 461(b)(1)(A). Eligible institution also
includes any trust company, corporation organized
under section 25A or having an agreement with the
Board under section 25, or any branch or agency of
a foreign bank (as defined in section 1(b) of the
International Banking Act of 1978). 12 U.S.C.
461(b)(12)(C); see 12 CFR 204.2(y) (definition of
‘‘eligible institution’’).
3 See 12 U.S.C. 461(b)(12).
4 See 12 CFR 204.10(b)(5).
2 Section
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]]>Agencies
[Federal Register Volume 82, Number 13 (Monday, January 23, 2017)]
[Rules and Regulations]
[Pages 7635-7636]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00612]
=======================================================================
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 201
[Docket No. R-1558]
RIN 7100 AE-66
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: The amendments to part 201 (Regulation A) are effective January
23, 2017. The rate changes for primary and secondary credit were
effective as determined by the Board in its December 14, 2016
announcement.
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.
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 1.00 percent to 1.25 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 1.50 percent to 1.75 percent the rate that each Reserve
Bank charges for extensions of secondary credit. The amendments to
Regulation A reflect these rate changes.
The rate changes for primary and secondary credit were effective as
determined by the Board in its December 14, 2016 announcement.\1\
---------------------------------------------------------------------------
\1\ Federal Reserve Implementation Note, ``Decisions Regarding
Monetary Policy Implementation'' (Dec. 14, 2016), https://www.federalreserve.gov/newsevents/press/monetary/20161214a1.htm.
---------------------------------------------------------------------------
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 \1/4\ to \1/2\ percent to a target range
of \1/2\ to \3/4\ percent) announced by the Federal Open Market
Committee (``Committee'') on December 14, 2016, as described in the
Board's amendment of its Regulation D published elsewhere in today's
Federal Register.
The presentation of the interest rates for primary and secondary
credit has been changed in the Code of Federal Regulations to improve
clarity.
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.
Accordingly, the Board has determined that the notice, public comment,
and delayed effective date requirements of 5 U.S.C. 553 do not apply to
the final amendments to Regulation A because the amendments involve a
matter relating to loans. In addition, the Board has determined that,
were the APA's requirements for notice, public comment, and delayed
effective date to apply to the final amendments to Regulation A, those
requirements would be unnecessary and contrary to the public interest.
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. Delay would also undermine the
Board's action in
[[Page 7636]]
responding to economic data and conditions. For these reasons, the
Board has determined that ``good cause'' within the meaning of the APA
exists 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.\2\ 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.
---------------------------------------------------------------------------
\2\ 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 Chapter II to read as follows:
12 CFR CHAPTER II
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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
(a) Primary credit. The interest rate at each Federal Reserve Bank
for primary credit provided to depository institutions under Sec.
201.4(a) is 1.25 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 1.75 percent.
* * * * *
By order of the Board of Governors of the Federal Reserve
System, January 9, 2017.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2017-00612 Filed 1-19-17; 8:45 am]
BILLING CODE 6210-01-P
