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F ederal Reserve Bank
DALLAS, TEXAS

Dallas

of

75222

Circular No. 73-159
June 29, 1973

INCREASES IN DISCOUNT RATE
AM) RESERVE REQUIREMENTS

To All Member Banks in the
Eleventh Federal Reserve District:

It was announced today, by the Board of Governors of the Federal
Reserve System, that two actions have been taken which are designed to
restrain continuing excessive expansion in money and credit.
In regard to the discount rate, the Board today approved actions
by the directors of several Federal Reserve Banks, including the Federal
Reserve Bank of Dallas, increasing the discount rate of those banks from
6 \ percent to 7 percent, effective Monday, July 2, 1973*
In a correspond­
ing action concerning reserve requirements, the Board has approved an In­
crease of one-half of one percentage point on all but the first $2 million
of net demand deposits at member banks. This action will become effective
in the reserve computation period beginning July 19 and will be applicable
to the average net demand deposits held in the week beginning July 5 and
ending July 11, 1973* It is projected that the increase in reserve require­
ments will remove some $800 million from the reserves that support the
deposit and loan structure.
ON NET DEMAND DEPOSITS OF

RESERVE PERCENTAGE APPLICABLE

First $2 million or less

8 percent (unchanged)

Over $2 million to $10 million

10 l/2

percent

Over $10 million to $100 million

12 l/2

percent

Over $100 million to $to0 million

13 l/2

percent

Over $^00 million

18 percent

A revised. Supplement A of our Bulletin No. 2 (Loans) and Supple­
ment to Regulation D (Reserves of Member Banks) will be forwarded to you
in the near future.
Yours very truly,
P. E. Coldwell
President

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


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