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F ederal

reserve

Ba n k

DALLAS, TE X A S

of

D allas

75222

Circular No. 83-44
March 21, 1983

REGULATION Q
INTEREST ON DEPOSITS
(Modifications to Existing Time Deposit Accounts)
TO ALL MEMBER BANKS
AND OTHERS CONCERNED IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
Under the current deregulation plan announced last year by the
Depository Institutions Deregulation Committee, three presently existing time
deposit categories which are authorized by Federal Reserve Regulation Q (Interest
on Deposits) will be modified during April and May of 1983.
Previous
announcements of these changes and further information are contained in Federal
Reserve Bank of Dallas Circular No. 82-43 and Circular No. 83-5. A summary of
the modifications which will take place during April and May and references to the
pertinent sections of Regulation Q are outlined below.
April 1, 1983
3 1/2 years or longer ceilingless time deposit
Change:

The term to maturity will be reduced to 2 1/2 years
or longer. (Regulation Q, Section 217.7(k))

2 1/2 years to less than 3 1/2 years time deposit
Change:

The term to maturity will be reduced to 1 1/2 years
to less than 2 1/2 years. The interest rate ceiling
will be indexed to the average yield for 1 1/2 year
Treasury securities with the 25 basis point differ­
ential retained. (Regulation Q, Section 217.7(g))

May 1, 1983
91-day time deposit
Change:

The 25 basis point differential between the interest
rate ceiling authorized for commercial banks and the
ceiling authorized for savings and loan associations
will be eliminated. The ceiling rate for all institu­
tions will be indexed to the 91-day Treasury bill
rate. (Regulation Q, Section 217.7(j)(2)(iii))

Banks and others are encouraged to use the following incoming W A TS numbers in contacting this Bank:
1-800-442-7140 (intrastate) and 1-800-527-9200 (interstate). For calls placed locally, please use 651 plus the_
extension referred to above.

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

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Technical amendments to Regulation D (Reserve Requirements of
Depository Institutions) concerning the reserve requirements associated with the
April 1, 1983 changes will be announced shortly in a separate circular.
Questions regarding this circular should be directed to the Legal
Department, Extension 6171.
Additional copies of this circular will be furnished upon request to the
Public Affairs Department, Extension 6289.
Sincerely yours,

William H. Wallace
First Vice President