January 20, 2003 News Archive

Board Issues SR Letter on Implementation of Sections 23A and 23B of the Federal Reserve Act
The Board issued SR 03-2 related to the adoption of Regulation W implementing Sections 23A and 23B of the Federal Reserve Act, effective April 1, 2003. The SR letter discusses the following nine significant issues addressed by the final rule: derivatives, intraday credit, financial subsidiaries, general purpose credit card exemption, foreign banks, section 250.250 exemption, affiliated mutual funds, corporate reorganizations and valuation rules.

Board Announces Approval of Final Rule on Regulation K
The Board approved revisions to Subpart D of Regulation K, governing international banking operations. The final rule would simplify the accounting for fees on international loans to make the regulation consistent with generally accepted accounting principles.

Board Issues Guidance on Credit Card Lending Practices
The Board issued SR 03-1 addressing account management and loss allowance practices for credit card lending. The interagency guidance (PDF), developed under the auspices of the Federal Financial Institutions Examination Council, outlines the supervisory agencies' expectations for prudent risk management, income recognition, and loss allowance methodology.

Board Announces Primary and Secondary Credit Rates for Discount Window Borrowing
The Board announced the discount rates under the new discount window lending programs. Depository institutions borrowing under the new primary and secondary credit programs would be charged 2-1/4 percent and 2-3/4 percent, respectively, effective January 9, 2003.