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Federal R eserve Bank OF DALLAS WIL LIAM H. W ALL ACE DALLAS, TEXAS 7 5 2 2 2 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 February 28, 1989 Circular 89-12 TO: The Chief Executive Officer of all member banks and others concerned in the Eleventh Federal Reserve District SUBJECT Discount Rate Change DETAILS The Board of Governors of the Federal Reserve System approved action by the Board of Directors of the Federal Reserve Bank of Dallas to increase by one half of one percent the basic discount rate. The rate for other extended credit also was increased by one half of one percent. These actions are effective February 27, 1989. Printed on the reverse of this circular is a copy of Supplement A to Bulletin 2 which contains the current rate schedule in effect at this bank. This supplement should be inserted in Volume 1 of the Regulations Binders and the supplement dated August 11, 1988, should be removed. MORE INFORMATION Finlay R. For further information, please contact Jesse D. Sanders or Higgins at (214) 651-6240. Sincerely yours, For a ddition al copies of any circu lar please co n ta c t the Public A ffairs D ep artm en t a t (214) 6 5 1 -6 2 8 9 . Banks and others are encouraged to use the follow ing incom ing W A T S num bers in contacting this Bank (800) 4 4 2 -7 1 4 0 (intrastate) 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) BULLETIN 2 FEDERAL RESERVE BANK OF DALLAS Supplement A RATES FOR DISCOUNTS AND ADVANCES The following ra te s w ith re sp e c t to discounts an d adv an ces u n d er the F ed eral R eserve A ct and Regulation A a re now in effect a t this Bank: Rates on Discounts and Advances Per Annum Effective from 7% F eb ru ary 27, 1989 F irst 30 d a y s ......................................................................... 7% F eb ru ary 27, 1989 T h e r e a f te r ............................................................................. Flexible Rate F eb ru ary 27, 1989 B asic ra te : short-term adju stm ent cre d it u n der 201.3(a) an d reg u lar seaso n al cred it u n d er 201.3(b) (1) of Regulation A1......................................................................... O ther ex ten d ed cred it u n d er 201.3(b) (2) of Regulation A (special circu m stan ces c red it and c red it for institutions u n d er su stain e d liquidity p re s s u re s)2 1 This is also the discount r a te for 90-day com m ercial p a p e r an d o ther p a p e r eligible for discount. A r a te higher th a n the basic discount r a te will be applied to loans of u n u su al size w hich re su lt from a m ajor op erating problem a t the b o rro w e r’s facility, unless the problem is clearly beyond the b o rro w e r’s reaso n ab le control. The n ew r a te will be the highest ra te w ithin the stru c tu re of discount ra te s a t the time in question. 2 A flexible ra te th a t tak es into account ra te s on m a rk et sou rces of funds o rdinarily will be applied to any “ other exten d ed c re d it” outstanding for m ore th a n 30 days. The flexible r a te will not be low er th a n the b asic r a te plus one-half p erce n tag e point. A t the discretion of this R eserve Bank, the 30-day time perio d for w hich b asic ra te is ch arg e d m ay be lengthened or shortened. F eb ru ary 27, 1989 A-1
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