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Federal R eserve Bank OF DALLAS W IL L IA M H. WALLACE DALLAS, TEXAS 75222 F IR S T V IC E P R E S ID E N T A N D C H IE F O P E R A T IN G O F F IC E R August 12, 1988 C i r c u l a r 88-54 TO: The Chief Executive O f f i c e r of a l l member banks and o t h e r s concerned in t h e Eleventh Federal Reserve D i s t r i c t SUBJECT Discount Rate Change DETAILS The Board of Governors o f t he Federal Reserve System approved a c t i o n by t he Board o f D i r e c t o r s o f the Federal Reserve Bank o f D al la s t o i n c r e a s e by one h a l f of one p e r c e n t t h e b a s i c d i s c o u n t r a t e . The r a t e s f o r temporary seasonal c r e d i t and o t h e r extended c r e d i t a l s o were i n c r e a s e d by one h a l f o f one p e r c e n t . These a c t i o n s a r e e f f e c t i v e August 11, 1988. P r i n t e d on the r e v e r s e of t h i s c i r c u l a r i s a copy of Supplement A to B u l l e t i n 2 which c o n t a i n s t he c u r r e n t r a t e schedule in e f f e c t a t t h i s Bank. This supplement should be i n s e r t e d in Volume 1 of the R eg ul at i ons Binders and t h e supplement da te d September 11, 1987, should be removed. MORE INFORMATION For f u r t h e r i n f o r m a t i o n , p l e a s e c o n t a c t J e s s e D. Sanders or F i nl a y R. Higgins a t (214) 651-6240. Sincerely yours, For additional copies of any circular please contact the Public A ffairs Departm ent at (2 1 4 )6 5 1 -6 2 8 9 . Banks and others are encouraged to use the follow ing in coming W A TS numbers in c onta c ting this Bank (800) 4 4 2 -7 1 4 0 (in trastate) and (800) 5 2 7 -9 2 0 0 (interstate). This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) FEDERAL RESERVE BANK OF DALLAS BULLETIN 2 Supplem ent A RATES FOR DISCOUNTS AND ADVANCES The following rates with respect to discounts and advances under the Federal Reserve Act and Regulation A are now in effect at this Bank: Rates on Discounts and Advances Per Annum Basic rate: short-term adjustm ent credit under 201.3(a) and regular seasonal credit under 201.3(b) (1) of Regulation A 1 ..................................................................... Effective from 6V% 2 August 11, 1988 First 30 d a y s ..................................................................... 6V % 2 August 11, 1988 T h e re a fte r......................................................................... Flexible Rate August 1 1 , 1988 Other extended credit under 201.3(b) (2 ) of Regulation A (special circum stances credit and credit for institutions under sustained liquidity p ressu res ) 2 1 This is also the discount rate for 90-day commercial paper and other paper eligible for discount. A rate higher than the basic discount ra te will be applied to loans of unusual size which result from a major operating problem at the borrow er’s facility, unless the problem is clearly beyond the borrow er’s reasonable control. The new rate will be the highest rate within the structure of discount rates at the time in question. 2 A flexible ra te th at takes into account rates on m arket sources of funds ordinarily will be applied to any “other extended credit” outstanding for more than 30 days. The flexible ra te will not be lower than the basic ra te plus one-half percentage point. At the discretion of this Reserve Bank, the 30-day time period for which basic ra te is charged may be lengthened or shortened. August 11, 1988 A-l
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