The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
fed e r a l
R
eser v e
B
ank
DALLAS. TEXAS
D
o f
allas
7 52 2 2
Circular No. 80-220
November 17, 1980
AMENDMENTS TO REGULATION D
RESERVES OF DEPOSITORY INSTITUTIONS
TO THE CHIEF EXECUTIVE OFFICER
OF ALL FINANCIAL INSTITUTIONS IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
The Board of Governors of the Federal Reserve System
announced publication of three rules in final form amending Regulation D
under the Monetary Control Act of 1980, together with an amendment to
the definition of Eurocurrency liabilities. The Federal Register document
detailing these actions is printed on the following pages.
The amendments include: (1) extending the special rule
regarding quarterly reporting to apply to all depository institutions that
have total deposits of less than $15 million (as originally adopted,
quarterly reporting was lim ited to depository institutions with total
deposits of less than $5 million); (2) deferring until May 1981 the
reporting and reserve maintenance requirements for nonmember deposi
tory institutions with less than $2 million in total deposits; and (3)
simplifying the method of calculation of reserve requirements where
member and nonmember institutions are involved in mergers so that
reserves of the surviving institution are calculated by allocating its
deposits according to the relative deposit size and structure of the
institutions involved in the merger on a proportional basis without regard
to whether the surviving institution is a member or a nonmember.
A copy of the amendments is enclosed and should be filed in
the Regulations Binder furnished by this Bank. Additional copies of the
amendments will be furnished upon request to the Bank and Public
Information Department, Ext. 6266.
Sincerely yours,
Robert H. Boykin
First Vice President
Enclosure
Banks and others are encouraged to use the following incoming WATS numbers in contacting this Bank:
1-800-442-7140 (intrastate) and 1-800-527-9200 (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)
T IT L E 1 2 — BANKS AND BANKING
CHAPTER II— FEDERAL RESERVE SYSTEM
SUBCHAPTER A— BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
[REGULATION D]
(Docket No. R-0331)
Part 204— RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS
AGENCY:
Board of Governors of the Federal Reserve System.
ACTION:
Final rule and technical amendments.
SUMMARY: The Board of Governors has amended Regulation D— Reserve Require
ments of Depository Institutions (12 CFR Part 204) to:
(1) extend the
special rule regarding quarterly reporting to apply to all depository
institutions that have total deposits of less than $15 million (As orig
inally adopted, quarterly reporting was limited to depository institutions
with total deposits of less than $5 million); (2) defer until May 1981
the reporting and reserve maintenance requirements for nonmember depository
institutions with less than $2 million in total deposits; and (3) simplify
the method of calculation of reserve requirements where member and non
member institutions are involved in mergers so that reserves of the
surviving institution are calculated by allocating its deposits according
to the relative deposit size and structure of the institutions involved
in the merger on a proportional basis without regard to whether the
surviving institution is a member or a nonmember.
In addition, a technical amendment has been adopted to clarify
that the definition of "Eurocurrency liabilities" (1) includes sales
of assets by depository institutions in the United States to their over
seas offices that occurred only after October 6 , 1979, and (2) with
respect to a U. S. branch or agency of a foreign bank, does not include
assets sold by its affiliated Edge or Agreement Corporations to its
foreign bank (including offices thereof located outside the United States)
or its parent holding company, but does include assets sold by the U. S.
branch or agency to the non-U. S. offices of an affiliated Edge or Agree
ment Corporation.
EFFECTIVE DATE:
November 13, 1980.
FOR FURTHER INFORMATION CONTACT: Gilbert T. Schwartz, Assistant General
Counsel (202/452-3625), Paul S. Pilecki, Attorney (202/452-3281) or
Paige Winebarger, Attorney (202/452-3265), Legal Division, Board of
Governors of the Federal Reserve System, Washington, D. C. 20551.
- 2 -
SUPPLEMENTARY INFORMATION: The Monetary Control Act of 1980 (Title I
of Pub. L. 96-221) ("Act") authorizes the Federal Reserve to impose
reserve requirements solely for the purpose of conducting monetary policy
on all depository institutions that maintain transaction accounts or
nonpersonal time deposits. Depository institutions subject to reserve
requirements include any Federally-insured commercial or savings bank,
or any such bank that is eligible to become insured by the Federal De
posit Insurance Corporation; any mutual or stock savings bank; any savings
and loan association that is a member of a Federal Home Loan Bank, insured
by, or eligible to apply for insurance with, the Federal Savings and
Loan Insurance Corporation; and any credit union that is insured by,
or eligible to apply for insurance with, the National Credit Union Ad
ministration Board. The reserve requirements of the Act also will apply
to United States branches of foreign banks, to United States agencies
of foreign banks with total worldwide consolidated bank assets in excess
of $1 billion, and to Edge and Agreement Corporations.
On August 15, 1980, the Board announced a revised Regulation D—
Reserve Requirements of Depository Institutions (12 CFR Part 204; 45
FR 56009), to become effective on November 13, 1980, implementing the
reserve requirement provisions of the Act. In order to facilitate the
implementation of reserve requirements, the Board has amended the regulation
in the areas of quarterly reporting by smaller depository institutions
and reserve requirement treatment of depository institutions involved
in mergers. In addition, the Board has announced a technical amendment
clarifying the definition of "Eurocurrency liabilities" concerning sales
of assets by depository institutions located in the United States to
their overseas offices.
Quarterly Reporting for Certain Depository Institutions
In an effort to reduce the reporting and reserve management
burden of very small depository institutions and to reduce the reserve
requirement processing burden of the Reserve Banks, the Board established
in August a procedure of quarterly reporting for depository institutions
with total deposits of less than $5 million. In addition, the Board
deferred reserve requirements of institutions that have less than $ 1
million in total deposits as of December 31, 1979, until May 1981.
Since that time, the Federal Reserve, through numerous contacts
with depository institutions and from analysis of more recent data,
has determined that simplified reporting procedures could be adopted
for a larger number of institutions without substantial effect on the
System's ability to conduct monetary policy. Accordingly, the Board
has expanded the quarterly reporting procedure to apply to all depository
institutions with less than $15 million in total deposits and to defer
all reserve maintenance and reporting requirements for nonmember depository
institutions with less than $2 million in total deposits as of December 31,
1979. Nonmember institutions with less than $2 million in deposits
will be exempt from quarterly reporting and reserve maintenance until
May 1981, at which time the Board will determine whether a further delay
is warranted.
- 3 -
Under the procedure of quarterly reporting, depository institu
tions with total deposits of less than $15 million as of December 31,
1979, will complete and file the Report of Transaction Accounts, Other
Deposits and Vault Cash (FR 2900) with the Federal Reserve for a 7-day
computation period only once during each calendar quarter and maintain
reserves over a subsequent three-month period based on the report filed.
Quarterly reporting will be staggered so that each month one-third of
all quarterly reporters will report data for one week. Reserves will
be maintained during a period beginning two weeks after the start of
the computation period and ending one week after the end of the institu
tion's next computation period. Balances to be held at the Federal
Reserve over the three-month maintenance period, either directly or
indirectly on a pass-through basis, will equal required reserves based
on the deposit report for one week less vault cash held during the sevenday reporting period. An institution will remain eligible for quarterly
reporting until its total deposits are $15 million or more for two con
secutive quarterly reports. Depository institutions eligible for quarterly
reporting and reserve maintenance would retain the option of reporting
and maintaining required reserves on a weekly rather than a quarterly
basis.
The quarterly reporting system will commence in January 1981.
Member banks with total deposits under $15 million will continue to
report deposits and maintain reserves on a weekly basis until that time.
Eligible nonmember institutions will not be required to report or maintain
reserves until the quarterly procedure begins. It should be noted that
Edge and Agreement Corporations and U. S. branches and agencies of foreign
banks will not be eligible for quarterly reporting and reserve maintenance.
Rather, all such institutions will— regardless of size— be required
to report and to maintain reserves on a weekly basis.
Reserve Requirement Treatment of Institutions Involved in Mergers
Under section 19(b)(8)(D) of the Federal Reserve Act (12 U.S.C.
§ 461(b)(8)(D)), as amended by the Monetary Control Act of 1980 (Title I
of Pub. L. 96-221), any bank that was a member bank on or after July 1,
1979, but which subsequently withdraws from membership in the Federal
Reserve System shall maintain reserves in the same manner as a member
bank. On April 23, 1980, the Board announced an interpretation of the
reserve requirement treatment of former member banks (12 CFR 204.120;
45 FR 28305) that included a policy concerning mergers involving former
member banks. Under that interpretation, where a bank that withdraws
from membership due to merger or consolidation with a nonmember bank
on or after July 1, 1979, and the surviving bank is a nonmember bank,
the surviving bank is required to maintain Federal reserves in the same
manner as a member bank on the fixed proportion of its deposits attributable
to the absorbed member bank. This fixed proportion is the ratio that
daily average deposits of the absorbed member bank were to the daily
average deposits of the combined banks during the reserve computation
period immediately preceding the date of the merger. The proportion
- 4 -
of deposits attributable to the nonmember survivor is entitled to an
eight-year phase-in of reserve requirements. The Board also adopted
a policy of allocating deposits between a member bank and a nonmember
bank in cases where a member bank is the surviving bank of a merger
or consolidation that takes place between a member and a nonmember bank
on or after March 31, 1980. However, only the amount of deposits of
the nonmember bank outstanding on a daily average basis during the computa
tion period immediately preceding the date of the merger is eligible
for an eight-year phase-in of reserves. These policies were incorporated
into revised Regulation D that was announced by the Board on August 15,
1980 (45 PR 56009) and were applied to all depository institutions in
volved in mergers.
After further consideration of how reserve requirements should
apply to mergers, the Board has determined to adopt a simplified procedure
of computing reserve requirements in the event of mergers between institu
tions. The Board has amended Regulation D so that mergers and consolida
tions involving member and nonmember banks are treated on the same basis
for reserve requirement purposes without regard to the membership status
of the surviving bank. Accordingly, where (1) a nonmember bank merges
or consolidates with a member bank on or after July 1, 1979, and the
surviving bank is a nonmember bank, or (2 ) a member bank merges or con
solidates on or after March 31, 1980, with a nonmember bank that was
engaged in business on July 1, 1979, and the surviving bank is a member
bank, the bank is required to maintain Federal reserves in the same
manner as a member bank on the proportion of deposits attributable to
the member bank party to the merger or consolidation. This proportion
will be the ratio that daily average required reserves of the absorbed
member bank were to the sum of daily average required reserves of the
banks during the reserve computation period immediately preceding the
date of the merger. The proportion of deposits attributable to a non
member bank that was engaged in business on July 1, 1979, will be en
titled to an eight-year phase-in of reserve requirements. In computing
the proportion of required reserves for purposes of allocating deposits,
calculations will be made before application of the phase-in provisions
of Regulation D. For mergers that occur prior to November 6 , 1980,
the reserve requirement ratios that were in effect on August 31, 1980
(section 204.8(b)) will be used to compute the proportional allocation.
For mergers occurring on or after November 6 , 1980, the reserve ratios
in effect under the Act (section 204.8(a)) will be used.
The rules concerning proportional allocation of deposits shall
also apply to any merger occurring on or after September 1, 1980, that
involves depository institutions that are subject to different reserve
requirement phase-in provisions under Regulation D (section 204.4(a)
through (f)). Where a merger involves institutions that are subject
to the same phase-in provision, the surviving institution will continue
to have its reserves calculated under such applicable rule. For all
mergers, the surviving institution is entitled to a two-year transitional
- 5 -
period to phase in itsincrease in reserve requirements that occurs
due to the loss of low reserve tranches of an absorbed institution as
a result of the merger or consolidation.
Definition of "Eurocurrency Liabilities"
Technical amendments have been made to the definition of "Euro
currency liabilities" in Regulation D to clarify the definition with
regard to sales ofassets by a
depository institution in the United
States toits overseas
offices or by a United States branch or agency
of a foreign bank to its related offices abroad. In the case of a de
pository institution or an Edge or Agreement Corporation organized under
the laws of the United States, "Eurocurrency liabilities" include assets
held by its non-United States offices or by non-United States offices
of an affiliated Edge or Agreement Corporation that were acquired from
its United States offices only after October 6 , 1979. For United States
branches and agencies of a foreign bank, such term includes assets held
by its foreign bank, by its parent holding company, or by non-United
States offices of an affiliated Edge or Agreement Corporation that were
acquired from the U. S. branch or agency only after October 6 , 1979.
However, "Eurocurrency liabilities" of a U. S. branch or agency of a
foreign bank does not include assets sold by its affiliated Edge or
Agreement Corporation to the branch's or agency's foreign bank or its
parent holding company.
The Board believes that these modifications will be more equi
table to depository institutions and also will alleviate to some extent
the burden associated with maintaining required reserves consistent
with the needs of monetary policy. Consequently, the Board, for good
cause finds that the notice, public procedure, and deferral of effective
date provisions of 5 U.S.C. § 553(b) with regard to this action are
impracticable and contrary to the public interest.
Effective November 13, 1980, pursuant to the Board's authority
under sections 19, 25 and 25(a) of the Federal Reserve Act (12 U.S.C.
SS 461 et seq., 601 et seq., 611 et seq.) and section 7 of the Inter
national Banking Act of 1978 (12 U.S.C. § 3105), Regulation D (12 CFR
Part 204) is amended as follows:
1.
In section 204.2, paragraph (h)(1) is revised to read as follows:
SECTION 204.2— DEFINITIONS
*
(h)
*
*
*
*
"Eurocurrency liabilities” means the sum of the following:
- 6 -
(1)
Transactions with related offices outside the United
States.
(i)
(ii)
*
*
*
(A)
*
(B)
assets (including participations) held by its
non-United States offices or by non-United
States offices of an affiliated Edge or Agreement
Corporation that were acquired after October 6 ,
1979, from its United States offices.
*
*
*
*
(A)
*
*
(B)
assets (including participations) held by its
foreign bank (including offices thereof located
outside the United States), by its parent holding
company, or by non-United States offices of
an affiliated Edge or Agreement Corporation
that were acquired after October 6 , 1979, from
the United States branch or agency (other than
assets required to be sold by Federal or State
supervisory authorities).
*
2.
*
*
*
*
*
*
In section 204.3, paragraph (d) is revised to read as follows:
SECTION 204.3— COMPUTATION AND MAINTENANCE
*
*
*
*
*
(d)
Special rule for depository institutions that have total
deposits of less than $15 million.
,
(1)
A depository institution with total deposits of
less than $15 million shall file a report of deposits once each calendar
quarter for a seven-day computation period that begins on the third
Thursday of a given month during the calendar quarter. Each Reserve
Bank shall divide the depository institutions in its District that qualify
under this paragraph into three substantially equal groups and assign
each group a different month to report during each calendar quarter.
(2)
*
*
*
- 7 -
(3)
A depository institution that has less than $15
million in total deposits as of December 31, 1979, shall qualify under
this paragraph until it reports total deposits of $15 million or more
for two consecutive calendar quarters.
*
3.
*
*
*
*
In section 204.4, paragraph (g) is revised to read as follows:
SECTION 204.4— TRANSITIONAL ADJUSTMENTS
*
*
*
*
*
(g)
Mergers and consolidations. The following rules con
cerning transitional adjustments apply to mergers and consolidations
of depository institutions.
(1) Where all depository institutions involved in a
merger or consolidation are subject to the same paragraph of the tran
sitional adjustment rules contained in paragraphs (a) through (f) of
this section during the reserve computation period immediately preceding
the merger, the surviving institution shall continue to compute its
transitional adjustment of required reserves under such applicable para
graph, except that the amount of reserves which shall be maintained
shall be reduced by an amount determined by multiplying the amount by
which the required reserves during the computation period immediately
preceding the date of the merger (computed as if the depository institu
tions had merged) exceeds the sum of the actual required reserves of
each depository institution during the same computation period, times
the appropriate percentage as specified in the following schedule:
Maintenance periodsoccurring
during quarterly periods
following merger
1
2
3
4
5
6
7
8 and succeeding
Percentage applied to
difference to compute
amount to be subtracted
87.5
75.0
62.5
50.0
37.5
25.0
12.5
0
(2 ) (i) Where the depository institutions involved in
a merger or consolidation are not subject to the same paragraph of the
transitional adjustment rules contained in paragraphs (a) through (f)
of this section and such merger or consolidation occurs
-
8 -
(A)
on or after July 1, 1979, between a non
member bank and a bank that was a member
bank on or after July 1, 1979, and the
survivor is a nonmember bank;
(B)
on or after March 31, 1980, between a
member bank and a nonmember bank and the
survivor is a member bank; or
(C)
on or after September 1, 1980, between
any other depository institutions
the required reserves of the surviving institution shall be computed,
by allocating its deposits, Eurocurrency liabilities, other reservable
claims, balances due from other depository institutions and cash items
in process of collection to each depository institution involved in
the merger transaction and applying to such amounts the transitional
adjustment rule of paragraphs (a) through (f) of this section to which
each such depository institution was subject during the reserve computa
tion period immediately prior to the merger or consolidation.
(ii)
The deposits of the surviving institution shall
be allocatedaccording to the ratio that daily average total required
reserves of each depository institution involved in the merger were
to the sum of daily average total required reserves of all institutions
involved in the merger or consolidation during the reserve computation
period immediately preceding the date of the merger.
(A) If the merger occurs before November 6 ,
1980, such ratio of daily average total required reserves shall be computed
using the reserve requirement ratios in section 204.8(b).
(B) If the merger occurs on or after November 6 ,
1980, such ratio of daily average total required reserves shall be computed
using the reserve requirement ratios in section 204.8(a) without regard
to the transitional adjustments of this section.
(iii)
The low reserve tranche on transaction accounts
(section204.8(a)) shall
be allocated to each institution involved in
the merger or consolidation using the ratio computed in subparagraph
(2 ) (ii) and the reserve requirement tranches on demand deposits (section
204.8(b)) shall be allocated to member bank deposits using such ratio
of daily average total required reserves.
(iv) The vault cash of the surviving depository
institution also will be allocated to each institution involved in the
merger or consolidation according to the ratio that daily average vault
cash of each depository institution involved in the merger was to the
sum of daily average vault cash of all institutions involved in the
merger or consolidation during the reserve computation period immediately
preceding the date of the merger.
- 9 -
(v) The amount of reserves which shall be maintained
shall be reduced by an amount determined by multiplying the amount by
which the required reserves during the computation period immediately
preceding the date of the merger (computed as if the depository institu
tions had merged) exceeds the sum of the actual required reserves of
each depository institution during the same computation period, times
the appropriate percentage as specified in the following schedule:
Percentage applied to
difference to compute
amount to be subtracted
Maintenance periods occurring
during quarterly periods
following merger
87.5
75.0
62.5
50.0
37.5
25.0
12.5
1
2
3
4
5
6
7
0
8 and succeeding
By order of the Board of Governors, October 29, 1980
(signed)
Theodore E. Allison
Theodore E. Allison
Secretary of the Board
[SEAL]
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS
AMENDMENTS TO REGULATION D +
As amended effective November 13, 1980
Effective November 13, 1980, sections 204.2,
204.3, and 204.4 are amended as follows:
(d)
Special rule for depository institutions that
have total deposits of less than $15 million.
(1) A depository institution with total deposits
1. In section 204.2, paragraph (h)(1) is revised to of less than $15 million shall file a report of de
read as follows:
posits once each calendar quarter for a seven-day
computation period that begins on the third Thurs
day of a given month during the calendar quarter.
SECTION 204.2— DEFINITIONS
Each Reserve Bank shall divide the depository in
* * * * *
stitutions in its District that qualify under this para
(h)
“ Eurocurrency liabilities” means the sum graph into three substantially equal groups and as
of the following:
sign each group a different month to report during
( 1) Transactions with related offices outside
each calendar quarter.
(2 ) * * *
the United States.
(i) * * *
(A) * * *
(B) assets (including participations) held
by its non-United States offices or by non-United
States offices of an affiliated Edge or Agreement
Corporation that were acquired after October 6,
1979, from its United States offices.
(ii) * * *
(A) * * *
(B) assets (including participations) held
by its foreign bank (including offices thereof lo
cated outside the United States), by its parent hold
ing company, or by non-United States offices of an
affiliated Edge or Agreement Corporation that were
acquired after October 6, 1979, from the United
States branch or agency (other than assets required
to be sold by Federal or State supervisory authori
ties).
#
#
*
*
*
2. In section 204.3, paragraph (d) is revised to
read as follows:
SECTION 204.3— COMPUTATION AND
MAINTENANCE
» * * * *
(3)
A depository institution that has less than
$15 million in total deposits as of December 31.
1979, shall qualify under this paragraph until it re
ports total deposits of $15 million or more for two
consecutive calendar quarters.
* * * * *
3. In section 204.4, paragraph (g) is revised to
read as follows:
SECTION 204.4— TRANSITIONAL
ADJUSTMENTS
* * * * *
(g) Mergers and consolidations. The following
rules concerning transitional adjustments apply to
mergers and consolidations of depository institu
tions.
(1)
Where all depository institutions involved
in a merger or consolidation are subject to the same
paragraph of the transitional adjustment rules con
tained in paragraphs (a) through (f) of this section
during the reserve computation period immediately
preceding the merger, the surviving institution shall
continue to compute its transitional adjustment of
required reserves under such applicable paragraph.
* F or this Regulation to be com plete retain:
1) Printed Regulation pam phlet dated Novem ber 13. 1980.
2) S upplem ent slip sheet dated August 1980.
3) This slip sheet.
NOVEMBER 1980
except that the amount of reserves which shall be
maintained shall be reduced by an amount deter
mined by multiplying the amount by which the re
quired reserves during the computation period im
mediately preceding the date of the merger
(computed as if the depository institutions had
merged) exceeds the sum of the actual required re
serves of each depository institution during the
same computation period, times the appropriate
percentage as specified in the following schedule:
Maintenance periods occurring
during quarterly periods
following merger
1
2
3
4
5
6
7
8 and succeeding
Percentage applied to
difference to compute
amount to be subtracted
87.5
75.0
62.5
50.0
37.5
25.0
12.5
0
of daily average total required reserves of all insti
tutions involved in the merger or consolidation dur
ing the reserve computation period immediately
preceding the date of the merger.
(A) If the merger occurs before No
vember 6, 1980, such ratio of daily average total
required reserves shall be computed using the re
serve requirement ratios in section 204.8(b).
(B) If the merger occurs on or after
November 6, 1980, such ratio of daily average total
required reserves shall be computed using the re
serve requirement ratios in section 204.8(a) without
regard to the transitional adjustments of this sec
tion.
(iii) The low reserve tranche on transaction
accounts (section 204.8(a)) shall be allocated to
each institution involved in the merger or consoli
dation using the ratio computed in subparagraph
(2)(ii) and the reserve requirement tranches on de
mand deposits (section 204.8(b)) shall be allocated
to member bank deposits using such ratio of daily
average total required reserves.
(iv) The vault cash of the surviving deposi
tory institution also will be allocated to each institu
tion involved in the merger or consolidation accord
in
ing to the ratio that daily average vault cash of
each depository institution involved in the merger
was to the sum of daily average vault cash of all
institutions involved in the merger or consolidation
during the reserve computation period immediately
preceding the date of the merger.
(v) The amount of reserves which shall be
maintained shall be reduced by an amount deter
mined by multiplying the amount by which the re
quired reserves during the computation period im
mediately preceding the date of the merger
(computed as if the depository institutions had
merged) exceeds the sum of the actual required re
serves of each depository institution during the
same computation period, times the appropriate
percentage as specified in the following schedule:
(2)
(i) Where the depository institutions
volved in a merger or consolidation are not subject
to the same paragraph of the transitional adjustment
rules contained in paragraphs (a) through (f) of this
section and such merger or consolidation occurs
(A) on or after July 1, 1979, between a
nonmember bank and a bank that was a member
bank on or after July I, 1979. and the survivor is a
nonmember bank;
(B) on or after March 31, 1980, between
a member bank and a nonmember bank and the
survivor is a member bank; or
(C) on or after September 1, 1980, be
tween any other depository institutions
the required reserves of the surviving institution
shall be computed by allocating its deposits. Euro
currency liabilities, other reservable claims, bal
ances due from other depository institutions and
Maintenance periods occurring
cash items in process of collection to each deposi
during quarterly periods
tory institution involved in the merger transaction
following merger
and applying to such amounts the transitional ad
1
justment rule of paragraphs (a) through (f) of this
2
section to which each such depository institution
3
was subject during the reserve computation period
4
immediately prior to the merger or consolidation.
(ii)
The deposits of the surviving institution 5
6
shall be allocated according to the ratio that daily
7
average total required reserves of each depository
8 and succeeding
institution involved in the merger were to the sum
Percentage applied to
difference to compute
amount to be subtracted
87.5
75.0
62.5
50.0
37.5
25.0
12.5
0
@FedFRASER