Full text of District Notices (Federal Reserve Bank of Dallas) : Amendment to Regulation D, Reserves of Member Banks

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F e d e r a l Re s e r v e b a n k o f Da l la s
DALLAS. TEXAS

February 10, 1964

AMENDMENT TO REGULATION D,
“ RESERVES OF MEMBER BANKS”

To All Member Banks of the
Eleventh Federal Reserve District:
There is enclosed a copy of an amendment to Regulation D,
adopted by the Board of Governors of the Federal Reserve
System effective January 29, 1964. The amendment deletes
from section 204.2(b) of Regulation D the last sentence, which
read:
The word “banks” in the term “ due from other
banks” refers to incorporated banks and does not
include private banks or bankers.
The purpose of the amendment is to permit member banks, in
computing their required reserves, to deduct from the amount
of their gross demand deposits any balance subject to imme­
diate withdrawal due from a private bank or banker that con­
ducts a banking business similar to that of an incorporated
bank.
Please file this amendment with Regulation D, “ Reserves
of Member Banks,” in the ring binder of bulletins and regu­
lations furnished by this bank.
Yours very truly,
Watrous H. Irons
President

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

RESERVES OF MEMBER BANKS
AMENDMENT TO REGULATION D
ISSU ED B Y TH E B O A R D OF G O V E R N O R S OF TH E FE D E R A L R E S E R V E SYSTEM

Effective January 29, 1964, section 204.2(b) is amended to
read as follow s:
S E C T IO N 204.2 — C O M P U T A T IO N OF R E SE R V E S

(b) Deductions allowed in computing reserves. — In deter­
mining the reserve balances required under the terms of this part,
member banks may deduct from the amount of their gross de­
mand deposits the amounts of balances subject to immediate with­
drawal due from other banks and cash items in process of collec­
tion as defined in § 204.1(g). Balances “ due from other banks” do
not include balances due from Federal Reserve banks, balances
(payable in dollars or otherwise) due from foreign banks or
branches thereof wherever located, or balances due from foreign
branches of domestic banks.0

6A member bank exercising fiduciary powers may not include in balances
“ due from other banks” amounts of trust funds deposited with other banks
and due to it as trustee or other fiduciary. If trust funds are deposited by the
trust department of a member bank in its commercial or savings department
and are then redeposited in another bank subject to immediate withdrawal
they may be included by the member bank in balances “ due from otiier
banks,” subject to the provisions of § 204.2(b).