Advertisement
YOU ARE HERE: LAT HomeCollections

BRIEFLY

The Fed increased certain interest charges.

May 20, 1986

Under the new policy, banks will have to finance giant loans at a rate higher than the prevailing discount rate, which is the basic finance charge that the Federal Reserve Board imposes in making loans to commercial banks. The agency said the new policy would deal with situations where banks are forced to make "exceptionally large borrowings" arising from a breakdown in a bank's computer-run financial systems. The discount rate is currently at 6.5%, but the Fed said it will impose an interest charge of 8.5% on loans in these unusual circumstances.

Advertisement
Los Angeles Times Articles
|
|
|