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F e d e ra l


e s e r v e



o f

D a lla s


Circular No. 73-227
September 8 , 1973


To All Member Banks in the
Eleventh Federal Reserve District:

It was announced yesterday by the Board of Governors of the Federal
Reserve System that farther action has been taken which is designed to curb the
rapid expansion in bank credit.
Yesterday the Board announced an increase in its marginal reserve require­
ments on large denomination time deposits and related domestic instruments. The
action will increase the marginal reserve requirement from 8 percent to 11 percent
effective September 20, 1973. The marginal reserve requirement does not apply to
deposits of these types totaling less than $10 million, which are still subject
to the regular reserve requirement.
The 11 percent marginal reserve requirement (the regular 5 percent plus
a supplemental 6 percent) will apply to increases in the level of affected deposits
since the week ending May 16, 1973* Member banks will be required to maintain the
11 percent marginal reserve requirement during the week beginning October k and
ending October 10 based on deposit levels in the computation period beginning
September 20 and ending September 26.
A revised Supplement to Regulation D (Reserves of Member Banks) suitable
for insertion in your binder of Bulletins and Regulations will be forwarded to
you in the near future.
Y ours v e r y t r u l y ,
P . E . C o ld w e ll
P re sid e n t

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (

Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102