The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F ederal Reserve Ban k DALLAS, TEXAS of Dallas 75222 C i r c u l a r No. 78-14 F e b r u a r y 3, 1978 AMENDMENT TO REGULATION D AND REVISED SUPPLEMENT B TO BULLETIN 4 TO ALL MEMBER BANKS IN THE ELEVENTH FEDERAL RESERVE DISTRICT: On D ecem ber 23, 1977, the B oard of G o v e rn o rs of th e Federal R e s e r v e Syste m a m e n d ed R egulation D to exem pt from the definition of th e te rm " d epo sit" a m em ber b a n k 's b o r r o w i n g s from a m em ber b a n k w hose head office is located o u ts id e th e United S ta te s. Section 204.1 (f) of R egulation D p ro v id e s th a t th e term "dep osit" in c lu d e s a m em ber b a n k 's liability on a ny p r o m i s s o r y note o r s im ila r ob ligation (w ritte n o r oral) is s u e d as a means of o b ta in in g fu n d s to b e u s e d in its b a n k in g b u s i n e s s e x c e p t a ny s u c h obligation th a t is is s u e d to and he ld for th e a cc o u n t of a domestic b a n k in g office of a n o t h e r b a n k . T h e exem ption for in te r b a n k b o r r o w i n g s is commonly r e f e r r e d to as th e Fed e ra l fu n d s ex em p tio n. A footnote c ontained in Regulation D p r o v i d e s th a t a domestic b a n k in g office is " a n y b a n k in g office in a n y state of th e United States or the D is tric t of Columbia of a b a n k o r g a n i z e d u n d e r domestic o r foreign law ." C o n s e q u e n tly , a m em ber b a n k 's b o r r o w i n g s from a n o th e r b a n k 's b a n k in g office in one of the 50 states of the United States or the D is tric t of Columbia a r e not c o n s id e r e d to b e d e p o sits a n d a r e , t h e r e f o r e , exem pt from the r e s e r v e r e q u i r e m e n t s imposed b y R egulation D a n d in t e r e s t ra te r e s t r i c t i o n s of R egulation Q. Member b a n k b o r r o w i n g s from foreign offices of o th e r b a n k s a r e s u b je c t to a 4 - p e r c e n t E u r o d o lla r r e s e r v e r e q u ir e m e n t imposed by § 204.5(c) of Regulation D. S u ch b o r r o w i n g s a r e not, h o w e v e r , s u b je c t to Regulation Q. T h e i n t e r b a n k b o r r o w i n g (F ed e ra l fu n ds) exem ption p r o v id e d for in Regulation D was a d o p te d , in p a r t , to facilitate r e s e r v e a d ju s tm e n ts by m em ber b a n k s . Such b o r r o w i n g s h a v e long b e e n e x e m p t from the B o a r d 's r e s e r v e r e q u i r e m e n t s a nd i n t e r e s t r a te limitations. T h e e x e m p tion a lso s e r v e s , in p a r t , to avoid th e m a inte n a n ce of d o u b le r e s e r v e s by m em ber b a n k s s in c e th e m ember b a n k selling th e fu n d s may a l r e a d y be m aintain ing r e s e r v e s a g a i n s t them . Banks and others are encouraged to use the following incoming W A T S numbers in contacting this Bank: 1-800 -492 -440 3 (intrastate) and 1-800 -527 -497 0 (interstate). For calls placed locally, please use 651 plus the extension referred to above. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) - 2 Section 19(h) of th e F e de ra l R e s e r v e Act (12 U . S . C . §466) p r o v id e s that a national b a n k located in a d e p e n d e n c y o r i n s u l a r p o s s e s sion of the United States may remain a n onm e m b e r b a n k if it so d e s i r e s . H o w e v e r, if su ch b a n k becomes a m ember of the Fed eral R e s e r v e S y s te m , it is s u b je c t to all of the p r o v is io n s of the A ct, in c lu d in g th e r e q u i r e m e n t of maintaining r e s e r v e s a g a i n s t its d e p o s i t s . Although a m ember b a n k h e a d q u a r t e r e d o u ts id e the United States is r e q u i r e d to maintain r e s e r v e s a g a i n s t its d e p o s it s p u r s u a n t to R egulation D, u n d e r the c u r r e n t p r o v i sions of R egulation D b o r r o w i n g s by a n o t h e r member b a n k from s u c h bank a r e also s u b je c t to r e s e r v e r e q u i r e m e n t s . In o r d e r to elim inate the p o s sib ility of d oub le r e s e r v e s being held b y two s e p a r a t e m ember b a n k s a g a i n s t s u c h f u n d s , th e Board has d e te rm in e d th a t it is a p p r o p r i a t e to amend R egulation D to exem pt from d e po sit tre a tm e n t a m ember b a n k 's b o r r o w i n g s from a m ember b a n k w hose main office is located o u ts id e th e states of th e United States and th e D istrict of C o lu m b ia . In view of th e su b sta n tia l p u b lic b e n e fits that will r e s u l t immedi ate ly from e xem pting m ember b a n k b o r r o w i n g s from m em ber b a n k s h e a d q u a r t e r e d o u ts id e the United S ta te s , the Board has d e te rm in e d th a t the notice a n d p u b lic p r o c e d u r e p r o v is io n s of 5 U . S . C . §553(b) a r e u n n e c e s s a r y a n d c o n t r a r y to the p u b lic i n t e r e s t . Since the B o a r d 's action g r a n t s an exemption to the p r o v is io n s of R egulation D, the d e f e r r e d e ffe c tive ness p r o v is io n s of 5 U . S . C . §553(d) a r e in a p p lic a b le . Member b a n k s a n d o t h e r s shou ld file the e nclosed am endm ent to Regulation D in t h e i r R egulations B in d e r . Also e n c lo se d is a new S u p plem ent B to Bulletin 4, e n title d " C u r r e n t S c h e d u le of Base a nd Related R e s e r v e P e r i o d s , " for th e y e a r 1978. T h i s s c h e d u le sh ould be o b s e r v e d in p r e p a r i n g Form A C -8, " R ep o rt of D eposits a n d Related D ata," for r e s e r v e computation p u r p o s e s . Ple a se s u b s tit u te this s c h e d u le immediately for the 1977 s c h e d u l e c u r r e n t l y on file in y o u r b i n d e r , w hich sh o u ld be rem oved a n d d e s t r o y e d . Additional c opies of the a m endm ent to R egulation D a n d S u p p l e ment B to Bulletin 4 will be f u r n i s h e d upon r e q u e s t to the S e c r e t a r y ' s Office of this B a n k , Ext. 6267. S in c e r e ly y o u r s , R obert H . Boykin F i r s t Vice P r e s i d e n t E n c lo s u re s BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM RESERVES OF MEMBER BANKS AMENDMENT TO REGULATION D f Effective December 23, 1977, § 204.1(f) is amended to read as follows: SECTION 204.1 — DEFINITIONS sfe * $ $ * (f) Deposits as including certain promissory notes and other obligations. For the purposes of this Part, the term “deposits” also includes a member bank’s liability on any promissory note, acknowledgment of advance, due bill, banker’s acceptance, or similar obligation (written or oral) that is issued or undertaken by a member bank as a means of obtaining funds to be used in its banking business, except any such obligation that: (1) Is issued to (or undertaken with respect to) and held for the account of (i) a domestic bank ing office" of another bank or (ii) an agency of the United States or the Government Development Bank for Puerto Rico; * * * * * f F or this Regulation to be complete as am ended D ecember 23, 1977, retain: 1) Printed Regulation pamphlet dated November 9, 1972; 2) A mendm ent effective July 12, 1973, Section 2 0 4 .1 (f); 3) Amendment effective November 26, 1973, Section 204.1 (g ); 4) Am endm ent effective October 14, 1974, Section 2 04.1(f); 5) Am endm ent effective N ovem ber 10, 1975, Section 204.1 ( e ) (1 ); 6) Supplement effective D ecember 25, 1975; 7) Am endm ent effective July 26, 1976, Section 2 04.1(f); 8) Supplement effective December 17, 1976; and 9) This slip sheet. “Any banking office (i) in any State of the United States or the District of Colum bia of a bank organized under domestic or foreign law or (ii) of a member bank whose head office is located outside the States of the United States or the District of Colum bia provided, reserves are required to be maintained by such member bank under this P art against the deposit liabilities of such office. BULLETIN 4 FEDERAL RESERVE BANK OF DALLAS Supplement B CURRENT SCHEDULE OF BASE AND RELATED RESERVE PERIODS Reports of deposits should be mailed not later than Thursday of each week. Listed below are the periods used for computing required reserves and the related periods in which the required reserves must be carried: BASE PERIOD RELATED RESERVE PERIOD For Reporting Deposits and Currency and Coin For Maintained Reserves Begins Ends Begins Ends 1 2 /2 2 /7 7 — 1 2 /2 8 /7 7 1 / 5 /7 8 — 1 /1 1 /7 8 1 2 /2 9 /7 7 — 1 / 4 /7 8 1 /1 2 /7 8 — 1 /1 8 /7 8 1 / 5 /7 8 — 1 /1 1 /7 8 1 /1 9 /7 8 — 1 /2 5 /7 8 1 /1 2 /7 8 — 1 /1 8 /7 8 1 /2 6 /7 8 — 2 / 1 /7 8 1 /1 9 /7 8 — 1 /2 5 /7 8 2 / 2 /7 8 — 2 / 8 /7 8 1 /2 6 /7 8 — 2 / 1 /7 8 2 / 9 /7 8 — 2 /1 5 /7 8 2 / 2 /7 8 — 2 / 8 /7 8 2 /1 6 /7 8 — 2 /2 2 /7 8 2 / 9 /7 8 — 2 /1 5 /7 8 2 /2 3 /7 8 — 3 / 1 /7 8 2 /1 6 /7 8 — 2 /2 2 /7 8 3 / 2 /7 8 — 3 / 8 /7 8 2 /2 3 /7 8 — 3 / 1 /7 8 3 / 9 /7 8 — 3 /1 5 /7 8 3 / 2 /7 8 — 3 / 8 /7 8 3 /1 6 /7 8 — 3 /2 2 /7 8 3 / 9 /7 8 — 3 /1 5 /7 8 3 /2 3 /7 8 — 3 /2 9 /7 8 3 /1 6 /7 8 — 3 /2 2 /7 8 3 /3 0 /7 8 — 4 / 5 /7 8 3 /2 3 /7 8 — 3 /2 9 /7 8 4 / 6 /7 8 — 4 /1 2 /7 8 3 /3 0 /7 8 — 4 / 5 /7 8 4 /1 3 /7 8 — 4 /1 9 /7 8 4 / 6 /7 8 — 4 /1 2 /7 8 4 /2 0 /7 8 — 4 /2 6 /7 8 4 /1 3 /7 8 — 4 /1 9 /7 8 4 /2 7 /7 8 — 5 / 3 /7 8 4 /2 0 /7 8 — 4 /2 6 /7 8 5 / 4 /7 8 — 5 /1 0 /7 8 4 /2 7 /7 8 — 5 / 3 /7 8 5 /1 1 /7 8 — 5 /1 7 /7 8 5 / 4 /7 8 — 5 /1 0 /7 8 5 /1 8 /7 8 — 5 /2 4 /7 8 5 /1 1 /7 8 — 5 / 1 7 /7 8 5 /2 5 /7 8 — 5 /3 1 /7 8 5 /1 8 /7 8 — 5 /2 4 /7 8 6 / 1 /7 8 — 6 / 7 /7 8 5 /2 5 /7 8 — 5 /3 1 /7 8 6 / 8 /7 8 — 6 /1 4 /7 8 B-l (Over) BULLETIN 4 FEDERAL RESERVE BANK OF DALLAS BASE PERIOD RELATED RESERVE PERIOD For Reporting Deposits and Currency and Coin For Maintained Reserves Begins Ends Begins Ends 6 / 1 /7 8 — 6 / 7 /7 8 6 /1 5 /7 8 — 6 /2 1 /7 8 6 / 8 /7 8 — 6 /1 4 /7 8 6 /2 2 /7 8 — 6 /2 8 /7 8 6 /1 5 /7 8 — 6 /2 1 /7 8 6 /2 9 /7 8 — 7 / 5 /7 8 6 /2 2 /7 8 — 6 /2 8 /7 8 7 / 6 /7 8 — 7 /1 2 /7 8 6 /2 9 /7 8 — 7 / 5 /7 8 7 /1 3 /7 8 — 7 /1 9 /7 8 7 / 6 /7 8 — 7 /1 2 /7 8 7 /2 0 /7 8 — 7 / 2 6 /7 8 7 /1 3 /7 8 — 7 /1 9 / 7 8 7 /2 7 /7 8 — 8 / 2 /7 8 7 /2 0 /7 8 — 7 /2 6 / 7 8 8 / 3 /7 8 — 8 / 9 /7 8 7 /2 7 /7 8 — 8 / 2 /7 8 8 /1 0 /7 8 — 8 /1 6 /7 8 8 / 3 /7 8 — 8 / 9 /7 8 8 /1 7 /7 8 — 8 /2 3 /7 8 8 /1 0 /7 8 — 8 /1 6 /7 8 8 /2 4 /7 8 — 8 /3 0 / 7 8 8 /1 7 /7 8 — 8 /2 3 /7 8 8 /3 1 /7 8 — 9 / 6 /7 8 8 /2 4 /7 8 — 8 /3 1 /7 8 — 8 /3 0 /7 8 9 /0 6 /7 8 9 /0 7 /7 8 — 9 /1 4 /7 8 — 9 /1 3 /7 8 9 /2 0 / 7 8 9 /0 7 /7 8 — 9 /1 3 /7 8 9 /2 1 /7 8 — 9 /2 7 /7 8 9 /1 4 /7 8 — 9 /2 0 /7 8 9 / 2 8 / 7 8 — 1 0 /0 4 /7 8 9 /2 1 /7 8 — 9 /2 7 /7 8 1 0 / 0 5 / 7 8 — 1 0 /1 1 /7 8 9 /2 8 /7 8 — 1 0 /0 4 /7 8 1 0 / 1 2 / 7 8 — 1 0 /1 8 /7 8 1 0 /0 5 /7 8 — 1 0 / 1 1 /7 8 1 0 / 1 9 / 7 8 — 1 0 /2 5 /7 8 1 0 /1 2 /7 8 — 1 0 / 1 8 / 7 8 1 0 /2 6 /7 8 — 1 1 /0 1 /7 8 1 0 /1 9 /7 8 — 1 0 /2 5 /7 8 1 1 /0 2 /7 8 — 1 1 /0 8 /7 8 1 0 / 2 6 / 7 8 — 1 1 /0 1 /7 8 1 1 /0 9 /7 8 — 1 1 /1 5 /7 8 1 1 /0 2 /7 8 — 1 1 /0 8 /7 8 1 1 / 1 6 / 7 8 — 1 1 /2 2 /7 8 1 1 /0 9 /7 8 — 1 1 / 1 5 / 7 8 1 1 / 2 3 / 7 8 — 1 1 /2 9 / 7 8 1 1 / 1 6 / 7 8 — 1 1 /2 2 / 7 8 1 1 / 3 0 / 7 8 — 1 2 /0 6 /7 8 1 1 /2 3 /7 8 — 1 1 /2 9 /7 8 1 2 / 0 7 / 7 8 — 1 2 / 1 3 /7 8 1 1 / 3 0 / 7 8 — 1 2 / 0 6 /7 8 1 2 / 1 4 / 7 8 — 1 2 /2 0 /7 8 1 2 /0 7 /7 8 — 1 2 /1 3 /7 8 1 2 / 2 1 / 7 8 — 1 2 /2 7 /7 8 1 2 /1 4 /7 8 — 1 2 /2 0 /7 8 1 2 /2 8 /7 8 — 1 /0 3 /7 9
@FedFRASER