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F E D E R A L R E S E R V E BANK O F NEW YORK Circular No. 8016 December 20, 1976 RESERVE REQUIREMENTS To All Member Banks, and Others Concerned, in the Second Federal Reserve District: The following statement was issued December 17 by the Board of Governors of the Federal Reserve System: The Board of Governors of the Federal Reserve System announced today a structural adjustment in reserve requirements on demand deposits. Required reserves will be reduced by about $550 million as a result of today's move which will reduce reserve requirements of member banks by one-half percentage point on their demand deposits up to $10 million and by one-quarter percentage point on their demand deposits above that amount. This action will tend to increase the supply of bank credit. The reserve requirement percentages will be as follows: Net Demand Deposits of Bank (in millions of dollars) 0-2 2-10 10-100 100-J+00 over 1+00 Old Percentage New Percentage 7 1/2 10 12 13 16 l/2 Today's action will apply to net demand deposits held by member banks during the week of December 16-22. Under the lagged reserve system currently in effect, the actual reserves will decline two weeks later, during the week of December 30-January 5. No change was made by the Board of Governors in reserve requirements on time and savings deposits. A copy of a new Supplement to Regulation D, reflecting this change, will be sent to you shortly. Additional copies of this circular will be furnished upon request. P aul A. V olckeh, President.
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