Regulation A: Extensions of Credit by Federal Reserve Banks, 50760-50761 [2023-16381]
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50760
Federal Register / Vol. 88, No. 147 / Wednesday, August 2, 2023 / Rules and Regulations
requirement for an applicant to be a
Hungarian resident for five years. This
simplified process also eliminated
identity management protocols that are
conditions of the Government of
Hungary’s standard naturalization
procedure, including the collection of
fingerprints and a facial image of the
applicant. Without complete biometric
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naturalization process, the Government
of Hungary’s passport application
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In October 2017, the Secretary
notified the Government of Hungary by
letter that it had been placed on
provisional VWP status (pursuant to
which Hungary is subject to an annual
assessment, rather than an assessment
every two years) due to its
noncooperation with earlier U.S.
Government requests for information
and collaboration in the investigation of
passport fraud. The letter outlined steps
necessary for Hungary to return to
normalized status as a participating
country in the VWP.
Despite engagement by U.S.
ambassadors and DHS up to the
Secretary level since 2017, the
Government of Hungary has made only
limited progress in addressing
vulnerabilities created by its
‘‘simplified’’ naturalization process. Its
failure to address the large volume of
identities that continue to be at risk of
being exploited for mala fide purposes
and its lack of investigative cooperation
with U.S. law enforcement presents an
elevated level of risk to the national
security, law enforcement, and
immigration enforcement interests of
the United States.
DHS is publishing this document
announcing that effective August 1,
2023, DHS is decreasing Hungary’s
ESTA validity period for travel to the
United States from two years from the
date of issuance to one year and limiting
the validity of an ESTA for citizens or
nationals of Hungary to a single use for
ESTA applications received after the
effective date of this document. This
will have the dual effect of (1) sending
a public signal regarding Hungary’s noncompliance with VWP requirements,
and (2) in the case of those with regular
travel to the United States, creating an
opportunity to obtain updated
application and travel history
information of Hungarian VWP travelers
for vetting purposes. This is necessary
due to Hungary’s inability to fully
satisfy its obligations under the VWP.
Should Hungary’s non-compliance with
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18:03 Aug 01, 2023
Jkt 259001
VWP requirements continue, DHS, in
consultation with State, may make
further adjustments to Hungary’s VWP
designation at any time, including
suspension or termination from the
program.
Robert Silvers,
Under Secretary for Strategy, Policy, and
Plans Department of Homeland Security.
[FR Doc. 2023–16412 Filed 8–1–23; 8:45 am]
BILLING CODE P
FEDERAL RESERVE SYSTEM
12 CFR Part 201
[Docket No. R–1811; RIN 7100 AG62]
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: Effective date: This rule is
effective August 2, 2023.
Applicability date: The rate changes
for primary and secondary credit were
applicable on July 27, 2023.
FOR FURTHER INFORMATION CONTACT: M.
Benjamin Snodgrass, Senior Counsel
(202–263–4877), Legal Division, or
Kristen Payne, Lead Financial
Institution & Policy Analyst (202–452–
2872), Division of Monetary Affairs; for
users of telephone systems via text
telephone (TTY) or any TTY-based
Telecommunications Relay Services,
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
SUMMARY:
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
the Federal Reserve Banks, subject to
review and determination of the Board.
On July 26, 2023, the Board voted to
approve a 0.25 percentage point
increase in the primary credit rate,
thereby increasing the primary credit
rate from 5.25 percent to 5.5 percent. 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
increased by 0.25 percentage points as
a result of the Board’s primary credit
rate action, thereby increasing the
secondary credit rate from 5.75 percent
to 6.0 percent. The amendments to
Regulation A reflect these rate changes.
The 0.25 percentage point increase in
the primary credit rate was associated
with 0.25 percentage point increase in
the target range for the Federal funds
rate (from a target range of 5 percent to
51⁄4 percent to a target range of 51⁄4
percent to 51⁄2 percent) announced by
the Federal Open Market Committee on
July 26, 2023, 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
15
U.S.C. 551 et seq.
U.S.C. 553(b)(3)(A).
3 5 U.S.C. 553(d).
25
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02AUR1
Federal Register / Vol. 88, No. 147 / Wednesday, August 2, 2023 / Rules and Regulations
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.
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.
ddrumheller on DSK120RN23PROD with RULES1
Authority and Issuance
For the reasons set forth in the
preamble, the Board is amending 12
CFR chapter II 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:
■
45
U.S.C. 553(a)(2).
U.S.C. 603, 604.
6 44 U.S.C. 3506; see 5 CFR part 1320, appendix
A.1.
55
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18:03 Aug 01, 2023
Jkt 259001
Authority: 12 U.S.C. 248(i)–(j), 343 et seq.,
347a, 347b, 347c, 348 et seq., 357, 374, 374a,
and 461.
2. Section 201.51 is amended by
revising paragraphs (a) and (b) 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 5.5
percent.
(b) Secondary credit. The interest rate
at each Federal Reserve Bank for
secondary credit provided to depository
institutions under § 201.4(b) is 6.0
percent.
*
*
*
*
*
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.
By order of the Board of Governors of the
Federal Reserve System.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2023–16381 Filed 8–1–23; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Docket No. R–1812; RIN 7100–AG63]
Regulation D: Reserve Requirements
of Depository Institutions
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 D 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
5.4 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: This rule is
effective August 2, 2023.
Applicability date: The IORB rate
change was applicable on July 27, 2023.
FOR FURTHER INFORMATION CONTACT: M.
Benjamin Snodgrass, Senior Counsel
(202–263–4877), Legal Division, or
SUMMARY:
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
50761
Kristen Payne, Lead Financial
Institution & Policy Analyst (202–452–
2872); for users of telephone systems via
text telephone (TTY) or any TTY-based
Telecommunications Relay Services,
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 5.15 percent.6
II. Amendment to IORB
The Board is amending § 204.10(b)(1)
of Regulation D to establish IORB at 5.4
percent. The amendment represents a
0.25 percentage point increase in IORB.
This decision was announced on July
26, 2023, with an effective date of July
27, 2023, in the Federal Reserve
Implementation Note that accompanied
the FOMC’s statement on July 26, 2023.
The FOMC statement stated that the
Committee decided to raise the target
range for the Federal funds rate to 51⁄4
to 51⁄2 percent.
The Federal Reserve Implementation
Note stated:
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 FR 16525 (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) and (b)(12)(A).
4 See 12 U.S.C. 461(b)(1)(A) & (b)(12)(C); see also
12 CFR 204.2(y).
5 See 12 U.S.C. 461(b)(12)(B).
6 See 12 CFR 204.10(b)(1).
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02AUR1
]]>Agencies
[Federal Register Volume 88, Number 147 (Wednesday, August 2, 2023)]
[Rules and Regulations]
[Pages 50760-50761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-16381]
=======================================================================
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 201
[Docket No. R-1811; RIN 7100 AG62]
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: Effective date: This rule is effective August 2, 2023.
Applicability date: The rate changes for primary and secondary
credit were applicable on July 27, 2023.
FOR FURTHER INFORMATION CONTACT: M. Benjamin Snodgrass, Senior Counsel
(202-263-4877), Legal Division, or Kristen Payne, Lead Financial
Institution & Policy Analyst (202-452-2872), Division of Monetary
Affairs; for users of telephone systems via text telephone (TTY) or any
TTY-based Telecommunications Relay Services, 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 July 26, 2023, the Board voted to approve a 0.25 percentage
point increase in the primary credit rate, thereby increasing the
primary credit rate from 5.25 percent to 5.5 percent. 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 increased by 0.25 percentage points
as a result of the Board's primary credit rate action, thereby
increasing the secondary credit rate from 5.75 percent to 6.0 percent.
The amendments to Regulation A reflect these rate changes.
The 0.25 percentage point increase in the primary credit rate was
associated with 0.25 percentage point increase in the target range for
the Federal funds rate (from a target range of 5 percent to 5\1/4\
percent to a target range of 5\1/4\ percent to 5\1/2\ percent)
announced by the Federal Open Market Committee on July 26, 2023, 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 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.'' \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
[[Page 50761]]
property, loans, grants, benefits, or contracts.'' \4\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\5\ 5 U.S.C. 603, 604.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\6\ 44 U.S.C. 3506; see 5 CFR part 1320, appendix A.1.
---------------------------------------------------------------------------
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 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. Section 201.51 is amended by revising paragraphs (a) and (b) to read
as follows:
Sec. 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 Sec.
201.4(a) is 5.5 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 6.0 percent.
* * * * *
\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.
By order of the Board of Governors of the Federal Reserve
System.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2023-16381 Filed 8-1-23; 8:45 am]
BILLING CODE 6210-01-P
