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F ed er a l R e s e r v e B ank O F DALLAS w illia m h. W a lla c e December 24, 1990 DALLAS, TEXAS 75222 FIRST VIC E PR E S ID E N T AND C H IE F O P ER ATIN G O FFIC ER Circular 90-103 TO: The Chief Executive Officer of each member bank 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 decrease the basic discount rate by one-half of 1 percent. The rate for other extended credit also was decreased by one-half of 1 percent. These actions became effective December 19, 1990. Printed on the reverse of this circular is a copy of Supplement A to Bulletin 2 that contains the current rate schedule in effect at this Bank. This supplement should be inserted in your Bulletins binder, and the supple ment dated February 27, 1989, should be removed. MORE INFORMATION For further information, please contact Jesse D. Sanders or Finlay R. Higgins at (214) 651-6240. Sincerely yours, For additional copies of any circular, please contact the Public Affairs Departm ent at (214) 651-6289. Bankers and others are encouraged to use the following toll-free num ber in contacting the Federal Reserve Bank of Dallas: (800) 333-4460. 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 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 E f f e c t iv e Date Basic rate: short-term adjustment credit under 201.3(a) and regular seasonal credit under 201.3(b)(1) of Regulation A 1 . . . . . . . . . . . . . . . . . . 6 1/2%December 19, 1990 Other extended credit under 201.3(b)(2) of Regulation A (special circumstances credit and credit for institutions under sustained liquidity pressures)2 First 30 d a y s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . T h e r ea f t er. . . . . . . . . . . . . . . . . . . . . . . Flexible rate 6 1/2%December 19, 1990 December 19, 1990 : This is also the discount rate for 90-day commercial paper and other paper eligible for discount. A rate higher than the basic discount rate will be applied to loans of unusual size that result from a major operating problem at the borrower’s facility, unless the problem is clearly beyond the borrower’s reasonable control. The new rate will be the highest rate within the structure of discount rates at the time in question. 2A flexible rate that takes into account rates on market sources of funds ordinarily will be applied to any "other extended credit" outstanding for more than 30 days. The flexible rate will not be lower than the basic rate plus one-half percentage point. At the discretion of this Reserve Bank, the 30-day time period for which the basic rate is charged may be lengthened or shortened. December 19, 1990 A-1