The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F ederal reserve Ba n k DALLAS, TEXAS of Dallas 75222 C i r c u l a r N o . 7 5 -1 9 4 D e c e m b e r 29, 1975 A m e r ic a n R e v o l u tio n B ic e n te n n ia l D E C R E A SE IN R ESERVE R E Q U IR E M E N T S ON M E M B E R B A N K T IM E D E P O S IT S W IT H A N O R IG IN A L M A T U R I T Y OF 180 D A Y S T O 4 Y E A R S T O A L L M E M B E R B A N K S IN T H E E L E V E N T H F E D E R A L R ES E R V E D IS T R IC T : T h e r e is q u ote d b e lo w th e te x t o f a p re s s re le a s e issued W e d n e s d a y , D e c e m b e r 24, 1975, b y th e B o a rd of G o v e r n o r s o f th e F e d e r a l R e s e r v e S y s te m , a n n o u n c in g a c h a n g e in R e g u la tio n D r e d u c in g th e r e s e r v e r e q u ir e m e n t s on m e m b e r b a n k tim e d e p o s its w i t h an o r i g inal m a t u r i t y of 180 d a y s to 4 y e a r s . T h e B oa rd of G o v e r n o r s o f th e F e d e r a l R e s e r v e S ystem to d a y a n n o u n c e d a n o t h e r s t r u c t u r a l c h a n g e in r e s e r v e r e q u ir e m e n t s on m e m b e r b a n k tim e d e p o s its . U n d e r th e a c tio n , r e s e r v e r e q u ir e m e n t s on tim e d e p o s its m a tu r in g in 180 d a y s to 4 y e a r s w i l l b e r e d u c e d fro m 3 p e r c e n t to 2 | p e r c e n t . In no c a s e , h o w e v e r , m ay th e a v e r a g e o f r e s e r v e s r e q u i r e d on th e total o f tim e a n d s a v in g s d e p o s its a t each b a n k be less th a n th e 3 - p e r c e n t m in im u m s p e c ifie d b y la w . T h e a c tio n w i l l re le a s e a b o u t $340 m illio n in r e s e r v e s to th e b a n k in g sy s te m . T h e c h a n g e is in lin e w i t h p r e v io u s B o a rd d e c is io n s th a t to e n c o u r a g e m e m b e r b a n k s to le n g th e n th e s t r u c t u r e o f t h e i r it ie s . A r e d u c tio n in r e s e r v e r e q u ir e m e n t s fro m 3 p e r c e n t to tim e d e p o s its o f 4 y e a r s o r m o re w a s a n n o u n c e d b y th e B o a rd a r e d e s ig n e d d e p o s it l i a b i l 1 p e r c e n t on last O c to b e r 15. T h e n ew r a tio of 2£ p e r c e n t w i l l a p p l y to th e le v e l o f d e p o s its b e g in n in g th e w e e k o f D e c e m b e r 25 a n d w i l l a ffe c t r e q u i r e d r e s e r v e s b e g in n in g th e w e e k o f J a n u a r y 8. A n a p p r o p r i a t e s u p p le m e n t to R e g u la tio n D , s u ita b le f o r in s e r t io n in y o u r R e g u la tio ns b i n d e r , w i l l be f o r w a r d e d to y o u in th e n e a r f u t u r e . I f y o u h a v e a n y q u e s tio n s r e g a r d i n g th is m a t t e r , p le a s e c o n ta c t A lla n Y . N ea le at (214) 6 5 1 -6 3 3 4 o r C . L . V i c k a t (214) 6 5 1 -6 3 3 3 , o r th e A c c o u n tin g D e p a rtm e n t a t o u r El Paso, H ou s to n , o r San A n to n io B r a n c h . S in c e r e l y y o u r s , T . W . P la n t First Vice President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
@FedFRASER