Final rule—amendment to Regulation A - Legal Developments - Extensions of Credit by Federal Reserve Banks

Federal Reserve Bulletin, March, 2003

The Board of Governors is amending 12 C.F.R. Part 201, its Regulation A and D (Extensions of Credit by Federal Reserve Banks). The Board is publishing final amendments to Regulation A to reflect its approval of the initial interest rates for extensions of primary and secondary credit. The amendments also correct a typographical error. These amendments supersede the text of one section of the final rule that the Board approved on October 31, 2002, and published in the Federal Register on January 9, 2003. The new primary and secondary credit rates do not indicate a change in the stance of monetary policy.

Effective January 9, 2003, 12 C.F.R. Part 201 is amended as follows:

Part 201--Extensions of Credit by Federal Reserve Banks (Regulation A)

1. The authority citation for Part 201 is revised 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. Section 201.51(a) through (c) are revised to read as follows:

Section 201.51--Interest rates applicable to credit extended by a Federal Reserve Bank.

(a) Primary credit. The interest rates for primary credit provided to depository institutions under section 201.4(a) are:

Federal Reserve Bank   Rate   Effective

Boston                 2.25   January 9, 2003
New York               2.25   January 9, 2003
Philadelphia           2.25   January 9, 2003
Cleveland              2.25   January 9, 2003
Richmond               2.25   January 9, 2003
Atlanta                2.25   January 9, 2003
Chicago                2.25   January 9, 2003
St. Louis              2.25   January 9, 2003
Minneapolis            2.25   January 9, 2003
Kansas City            2.25   January 9, 2003
Dallas                 2.25   January 9, 2003
San Francisco          2.25   January 9, 2003

(b) Secondary credit. The interest rates for secondary credit provided to depository institutions under section 201.4(b) are:

Federal Reserve Bank   Rate   Effective

Boston                 2.75   January 9, 2003
New York               2.75   January 9, 2003
Philadelphia           2.75   January 9, 2003
Cleveland              2.75   January 9, 2003
Richmond               2.75   January 9, 2003
Atlanta                2.75   January 9, 2003
Chicago                2.75   January 9, 2003
St. Louis              2.75   January 9, 2003
Minneapolis            2.75   January 9, 2003
Kansas City            2.75   January 9, 2003
Dallas                 2.75   January 9, 2003
San Francisco          2.75   January 9, 2003

(c) Seasonal credit. The rate for seasonal credit extended to depository institutions under section 201.4(c) is a flexible rate that takes into account rates on market sources of funds.