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Regulation A: Extensions of Credit by Federal Reserve Banks
Plain English Summary
The Federal Reserve is changing its rules about who can access credit from its discount window. Specifically, if someone holds a special-purpose payment account, they will not be able to get this type of credit. However, this change will not affect the existing credit programs or the way interest rates for these credits are set. Agents should be aware of this update and inform clients who may be impacted by these changes.
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The Board of Governors of the Federal Reserve System (Board) proposes to amend its Regulation A (Extensions of Credit by Federal Reserve Banks) to specify that a holder of a proposed special-purpose payment account (a Payment Account) would not be eligible for access to discount window credit made available by the Federal Reserve Banks (Reserve Banks). The proposal would change neither the existing programs under which the Reserve Banks generally provide discount window credit (primary credit, secondary credit, and seasonal credit) nor the process for establishing the primary credit, secondary credit, and seasonal credit rates.