Full text of District Notices (Federal Reserve Bank of Dallas) : Decrease in Reserve Requirements on Net Demand Deposits, Circular No. 76-174

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F e d e r a l R e s e r v e Ba n k
DALLAS. TEXAS

of

Dallas

75222
C irc u la r No. 76-174
December 23, 1976

DECREASE IN RESERVE REQUIREMENTS
ON NET DEMAND DEPOSITS

TO ALL MEMBER BANKS IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
T h e r e is q u o t e d b e lo w t h e t e x t of a p r e s s r e l e a s e i s s u e d on D e c e m b e r 17,
1976, b y t h e B o a rd o f G o v e r n o r s of t h 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 i n g a r e ­
d u c t io n in r e s e r v e r e q u i r e m e n t s on d e m a n d d e p o s i t s of m e m b e r b a n k s . T h e
a m e n d m e n t s a r e e f f e c tiv e on d e m a n d d e p o s i t s in t h e w e e k b e g i n n i n g D e c e m b e r 16,
1976, a n d affec t r e s e r v e s h e l d b y m e m b e r b a n k s in t h e w e e k b e g i n n i n g
D e c e m b e r 30, 1976.
T h e B o a rd of G o v e r n o r s of t h e F e d e r a l R e s e r v e S y s t e m a n n o u n c e d
to d a y a s t r u c t u r a l a d j u s t m e n t in r e s e r v e r e q u i r e m e n t s on d e m a n d d e ­
p o s i t s . R e q u i r e d r e s e r v e s will b e r e d u c e d b y a b o u t $550 m illion a s a
r e s u l t of t o d a y 's m ove w h ic h w ill r e d u c e r e s e r v e r e q u i r e m e n t s of m em ­
b e r b a n k s b y o n e - h a l f p e r c e n t a g e p o in t o n t h e i r d e m a n d d e p o s i t s u p to
$10 m illion a n d b y o n e - q u a r t e r p e r c e n t a g e p o in t o n t h e i r d e m a n d d e ­
p o s i t s a b o v e t h a t a m o u n t . T h i s a c tio n will t e n d to i n c r e a s e t h e s u p p l y
o f b a n k c r e d i t . T h e r e s e r v e r e q u i r e m e n t p e r c e n t a g e s will b e a s
follow s:
Net D em and D e p o s its
(In M illions of D o lla rs)
0 2
2 - 10
10 - 100
100 - 400
O v e r 400

P resent
Ratio
7 1/2
10
12
13
16 1/2

New
Ratio
7
9
11
12
16

1/2
3 /4
3 /4
1 /4

T o d a y ' s a c tio n w ill a p p l y to n e t d e m a n d d e p o s i t s h e l d b y m e m b e r
b a n k s d u r i n g t h e w e e k of D e c e m b e r 16-22. U n d e r t h e l a g g e d r e s e r v e
s y s t e m c u r r e n t l y in e f f e c t, t h e a c t u a l r e s e r v e s w ill d e c l i n e two w e e k s
l a t e r , d u r i n g t h e w e e k of D e c e m b e r 3 0 - J a n u a r y 5.

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

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A n a p p r o p r i a t e s u p p l e m e n t to R e g u l a ti o n D, s u i t a b l e f o r i n s e r t i o n in
y o u r R e g u l a t i o n s B i n d e r , w ill b e f o r w a r d e d to y o u in t h e n e a r f u t u r e .
If y o u h a v e a n y q u e s t i o n s r e g a r d i n g t h i s m a t t e r , p l e a s e c o n t a c t A lla n Y .
N eale a t (214) 651-6 3 3 4 , o r t h e A c c o u n t i n g D e p a r tm e n t a t o u r El P a s o , H o u s t o n , o r
S a n A n to n io B r a n c h .
S in ce rely y o u r s ,
R o b e r t H. B o y k in
F i r s t V ice P r e s i d e n t