Regulation A: Extensions of Credit by Federal Reserve Banks

March 10, 2020 Regulation lookup, The Fed 0

Title:
Regulation A: Extensions of Credit by Federal Reserve Banks
Subject: Primary, secondary credit rates
Agency: Federal Reserve
Status: 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 a decrease in the rate for primary credit at each Federal Reserve Bank. The secondary credit rate at each Reserve Bank automatically decreased by formula as a result of the Board’s primary credit rate action. On March 3, 2020, the Board voted to approve a 1/2 percentage point decrease in the primary credit rate in effect at each of the twelve Federal Reserve Banks, thereby decreasing from 2.25 percent to 1.75 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 decreased by 1/2 percentage point as a result of the Board’s primary credit rate action, thereby decreasing from 2.75 percent to 2.25 percent the rate that each Reserve Bank charges for extensions of secondary credit. The amendments to Regulation A reflect these rate changes.
FR Doc: 2020-04825
Date proposed:
Comments due date:

Final rule effective date: Effective March 10, 2020; the rate changes for primary and secondary credit were applicable on March 4, 2020
Rule compliance date:
Agency release:

Related Reg Report item(s):

Fed reduces primary credit rate, Reg D reserves interest rates to meet fed funds rate cut