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F ederal reserve Ba n k DALLAS, TEXAS of Dallas 75222 Circular No. 71-198 August 2 b , 1971 RESERVES OF MEMBER BANKS To All Member Banks in the Eleventh Federal Reserve District: This Bank’s Bulletin b entitled ’’Reserves of Member Banks” and the related supplements have been revised effective August 2b> 1971* The purpose of these revisions is to incorporate the changes in format and text which are being made to all of the bulletins of this Bank as outlined in Circular No. 30-307 dated December 22, 1970. There are no changes in requirements or procedures as a result of these revisions. The material listed below is enclosed: 1. Bulletin b entitled "Reserves of Member Banks” dated August 2b, 1971, 2. Supplement A entitled "Computation of Reserves to be Carried with the Federal Reserve Bank by Member Banks", 3. Supplement B entitled "Current Schedule of Base and Related Reserve Periods", and Postal card acknowledgment of receipt. You should substitute the enclosed Bulletin U and related supplements for Bulletin ^ dated September 12, 1968 and the related 1971 supplement in the ring binder of bulletins and regulations furnished by us. PLEASE ACKNOWLEDGE RECEIPT OF THE ENCLOSED BULLETIN b AND RE LATED SUPPLEMENTS BY SIGNING AND RETURNING THE ENCLOSED POSTAL CARD. Yours very truly, P. E. Coldwell, President Enclosures (U) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) BULLETIN 4 Reserves of Member Banks FEDERAL RESERVE BANK OF DALLAS SCOPE This bulletin contains information on the reserve balances that member banks are required by Section 19 of the Federal Reserve Act to maintain with this bank. The reserve percentages applicable to member banks will be found in the current Supplement to Regu lation D. Supplement A to this bulletin contains a formula for computing reserves and Supplement B gives the current schedule of base and related reserve periods. TABLE OF CONTENTS Section 1, DEFINITIONS 1.00 1.05 1.10 1.15 AC 8 Report Base Period Related Reserve Period Reference to Bulletin 1 Section 2, REFERENCES Section 3, AC 8 REPORT 3.00 Submission of AC 8 Report 3.05 AC 8 Report determines reserve requirement 3.10 Determination of balances at close of banking day 3.15 Correct completion of AC 8 Report Section 4, RESERVE COMPUTATION 4.00 How to compute reserves 4.05 Period to which computation applies 4.10 Reserve balance Section 5, PENALTIES 5.00 5.05 5.10 5.15 Penalties for reserve deficiencies Assessment of penalties Penalty rate Waiver of penalties Supplement A, FORMULA FOR RESERVE COMPUTATION Supplement B, CURRENT SCHEDULE OF BASE AND RELATED RESERVE PERIODS BULLETIN 4 FEDERAL RESERVE BANK OF DALLAS Section 1, DEFINITIONS 1.00 AC 8 Report “AC 8 Report” means the Report of Deposits and Related Data, Form AC 8, sufficient copies of which are annually supplied to member banks and extra copies of which may be obtained from this bank as needed. 1.05 Base Period “Base Period” means the seven-day reserve com putation period which ends at the close of busi ness each Wednesday and for which the AC 8 Report is submitted. 1.10 Related Reserve Period “Related Reserve Period” means the seven-day reserve computation period beginning eight cal endar days and ending fourteen calendar days after the close of the Base Period. It is the period during which the reserve requirements com puted from the AC 8 Report for the Base Period must be maintained. 1.15 Reference to Bulletin 1 Several definitions, rules of construction, and other provisions applicable to this bulletin are found in our Bulletin 1, “General Provisions,” and are incorporated herein by reference. Section 2, REFERENCES Section 204.1 of Regulation D defines: (1) various classes of deposits (2) cash items in process of collection (3) net demand deposits (4) currency and coin (5) balances subject to immediate withdrawal due from other banks. The instructions for preparation of reports of condition issued by the banking supervisory authorities contain definitions concerning U.S. Government demand deposits. Section 3, AC 8 REPORT 3.00 Submission of AC 8 Report Each member bank shall send this bank a weekly AC 8 Report. This Report should be sent as soon as practicable after the close of business each Wednesday. 3.05 AC 8 Report determines reserve requirement The AC 8 Report of a member bank will deter mine the amount of reserves required to be maintained in its reserve balance for the Related Reserve Period. As provided in Section 204.3(a) (1) of Regulation D, the reserve requirements of member banks are determined on the basis of average daily net deposit balances and average daily currency and coin during the Base Period, as set out in the AC 8 Report for that period. 3.10 Determination of balances at close of the banking day The balance for each day should reflect the bal ance at the close of business that day. The balance for a non-banking day will be identical with the balance for the immediately preceding banking day. We compute each member bank’s balance with us at our close of business each day. 3.15 Correct completion of AC 8 Report This form includes references in each column to corresponding items and schedules in the call reports of condition. The figures for U.S. Gov ernment demand deposits should include bal ances in the Treasury Tax and Loan Account, the Series E bond account, and Savings note ac count, as well as all demand deposits of public monies made by or for the account of the United States or any department, bureau, or official thereof. Amounts reportable as currency and coin (column 9) should include currency and coin in transit to or from us. Section 4, RESERVE COMPUTATION 4.00 How to compute reserves The formula provided in Supplement A is for use as a guide in determining the amount of re serves a member bank must maintain with us. Items are referenced to the call reports of con dition. Member banks should maintain current computations of their required reserves so that they will be aware of their required reserve position. BULLETIN 4 FEDERAL RESERVE BANK OF DALLAS 4.05 Period to which computation applies The reserve computation made by a member bank represents the reserves required to be main tained during the Related Reserve Period, the second reserve computation period following the Base Period. 4.10 Reserve balance The reserve balance of a member bank shall consist of the member bank’s average daily bal ance with this bank at the close of business each day during the Related Reserve Period and the average daily amount of currency and coin held by the member bank at the close of each banking day during the Base Period. Section 5, PENALTIES 5.00 Penalties for reserve deficiencies Member banks will be notified in writing of any reserve deficiency. Any excess or deficiency of a member bank’s required reserves will be carried forward to the following reserve computation period to the extent such excess or deficiency does not exceed 2% of the reserves required in the Related Reserve Period in which the excess or deficiency occurred. Any excess or deficiency greater than 2% will not be carried forward. Any portion of the 2% allowable excess or de ficiency not offset in the immediately following reserve computation period may not be again carried forward to subsequent computation per iods. 5.05 Assessment of penalties A deficiency penalty will be assessed on the 25th day of the month following the month in which one or more reserve deficiencies are incurred. If the 25th day of the month is on a non-banking day, the penalty will be assessed on the first banking day preceding the 25th. 5.10 Penalty rate Penalties are assessed at a rate of 2% per annum greater than the current discount rate, as stated in the Supplement A to Bulletin 2 in effect on the first day of the calendar month in which the deficiency or deficiencies occurred. 5.15 Waiver of penalties This bank has discretionary power to waive pen alties for deficiencies, and such power shall be exercised on a case-by-case basis with particular attention given to instances in which the penalty would be small and the member bank is making appropriate efforts to maintain adequate reserves. FEDERAL RESERVE BANK OF DALLAS BULLETIN 4 Supplement A COMPUTATION OF RESERVE TO BE CARRIED WITH THE FEDERAL RESERVE BANK BY MEMBER BANKS 1. 2. 3. 4. 5. (For definitions of the term s gross dem and deposits, deductions allow ed in com put ing reserves, cash item s in process of collection, n et dem and deposits, tim e deposits, and currency and coin, see R egulation D of the Board of G overnors of the F ederal R eserve System . Reference to call report item num bers, show n below, are to those in th e form u sed at the June 1971 call.] GROSS DEMAND DEPOSITS: (a) D em and deposits of b a n k s1 (close of b u s in e s s ) .........................................$ .......................... (C orresponds to item s 1, 7, and 8 in Schedule E of call rep ort of condition) (b) U. S. G overnm ent dem and deposits2 (close of b u s in e s s ) ..................................................... (Corresponds to item 4 in Schedule E of call repo rt of condition) (c) O ther dem and deposits (close of business) - - - - - - - - - ........................ $ ........................ (Corresponds to item s 2, 5, 6, and 9 in Schedule E of call rep o rt of condition) DEDUCTIONS ALLOWED IN COMPUTING RESERVES: (a) Cash item s in process of collection, except to th e extent included in item 2(b) (including checks w ith Federal Reserve banks in process of collection and checks on h an d w hich w ill be presen ted for pay m ent or fo rw arded for collection on the follow ing business day) (close of b u s in e s s ) ......................................................................................................................... (Corresponds to item in Schedule D of call report on condition) (b) Balances subject to im m ediate w ith draw al due from other banks (including cash item s forw arded to a correspondent bank for col lection and credit and charged to “Due from b an k s,” bu t excluding balances due from Federal Reserve banks, from foreign banks or bran ch es thereof, or from foreign b ranches of dom estic banks.1) (close of b u s in e s s ) ............................................................................................ ........................................................... (Corresponds to item 2 in Schedule D of call rep ort of condition) NET DEMAND DEPOSITS (item 1 m inus item 2 ) .............................................. - ......................................................... TOTAL TIME DEPOSITS3 (close of b u s in e s s )...................................................................................... ............................. (a) Savings deposits (close of b u s in e s s ) ............................................................... ............................. (Corresponds to item 1 in Schedule F of call repo rt of condition) (b) O ther tim e deposits (close of b u s in e s s )....................................................................................... (Corresponds to item s 3, 4, 6, 7, 8, 9, and 10 in Schedule F of call repo rt of condition) RESERVES REQUIRED4: (a) On n et dem and deposits (item 3 above): (1) Up to 5 m illion.................. p e r c e n t ........................................................................................ (2) In excess of 5 m illion.................. p e r c e n t ............................................... ............................. (b) On all savings deposits (item 4(a) above); and on other tim e deposits up to 5 million, (c) On all o ther tim e deposits...................p e r c e n t ............................................... ............................. (d) T otal reserves required to be m a in ta in e d .............................................................................................................. 6. C urrency and Coin (close of b u s in e s s ) ...................................- ....................................... - - ........................ (Corresponds to item 5 in Schedule D of call repo rt of condition) 7. R eserve to be m aintained w ith Federal Reserve Bank5 ...................................- - - - - ........................ (Item 5(d) m inus item 6) R e c ip r o c a l in te rb a n k dem an d d ep o sits w ith b a n k s in th e U n ited S ta te s, ex cep t A m erican b ra n c h es o f fo reig n b a n k s, m u st be re p o rte d n et. in c lu d e s d ep o sits in T re a su ry ta x an d lo a n acco u n t, S e rie s E b o n d acco u n t, an d S avings n o te acco u n t. 3C h ristm as savings, v a ca tio n club, an d sim ila r ty p e s of tim e d e p o sit acco u n ts sh o u ld b e In clu d ed w ith Savings d ep o sits (item 4a] a n d ex clu d ed fro m O th e r tim e d ep o sits (item 4b) fo r p u rp o se s of th is re p o rt. E x cep t fo r th is d ifference, item re fe re n c es n o te d apply. 4F o r c u rre n t re q u ire d re serv e p e rc en tag e ag ain st th e d ep o sit to ta ls fo r b a n k s in re serv e cities an d fo r b a n k s lo c a ted elsew h ere, see la te st su p p le m e n t to R eg u latio n D. 6T his am o u n t is th e to ta l cum u lativ e re serv e to be m ain ta in e d w ith th e F e d e ra l R eserve B an k in th e seco n d re serv e p e rio d follow ing th e p e rio d fo r w h ich th is c o m p u tatio n is m ad e an d it d oes n o t ta k e in to co n sid e ra tio n th e 2 p e rc e n t c arry -fo rw ard p ro v isio n of R eg u latio n D. F o r th e av erag e d aily re serv e, divide b y seven. A -l FEDERAL RESERVE BANK OF DALLAS BULLETIN 4 Supplement B CURRENT SCHEDULE OF BASE AND RELATED RESERVE PERIODS Reports of deposits should be mailed not later than Thursday of each week. Listed below are the periods used for computing required reserves and the related periods in which the required reserves must be carried: BASE PERIOD RELATED RESERVE PERIOD For Reporting Deposits and Currency & Coin For Maintained Reserves Begins Ends Begins Ends 1 2 /2 4 /7 0 — 1 2 /3 0 /7 0 1 / 7 /7 1 — 1 /1 3 /7 1 1 2 /3 1 /7 0 — 1 / 6 /7 1 1 /1 4 /7 1 — 1 /2 0 /7 1 1 / 7 /71 — 1 /1 3 /7 1 1 /2 1 /7 1 — 1 /2 7 /7 1 1 /1 4 /7 1 — 1 /2 0 /7 1 1 /2 8 /7 1 — 2 / 3 /7 1 1 /2 1 /7 1 — 1 /2 7 /7 1 2 / 4 /7 1 — 2 /1 0 /7 1 1 /2 8 /7 1 — 2 / 3 /7 1 2 /1 1 /7 1 — 2 /1 7 /7 1 2 / 4 /7 1 — 2 /1 0 /7 1 2 /1 8 /7 1 — 2 /2 4 /7 1 2 /1 1 /7 1 — 2 /1 7 /7 1 2 /2 5 /7 1 — 3 / 3 /7 1 2 /1 8 /7 1 — 2 /2 4 /7 1 3 / 4 /7 1 — 3 /1 0 /7 1 2 /2 5 /7 1 — 3 / 3 /7 1 3 /1 1 /7 1 — 3 /1 7 /7 1 3 / 4 /7 1 — 3 /1 0 /7 1 3 /1 8 /7 1 — 3 /2 4 /7 1 3 /1 1 /7 1 — 3 /1 7 /7 1 3 /2 5 /7 1 — 3 /3 1 /7 1 3 /1 8 /7 1 — 3 /2 4 /7 1 4 / 1 /7 1 — 4 / 7 /7 1 3 /2 5 /7 1 — 3 /3 1 /7 1 4 / 8 /7 1 — 4 /1 4 /7 1 4 / 1 /7 1 — 4 / 7 /7 1 4 /1 5 /7 1 — 4 /2 1 /7 1 4 / 8 /7 1 — 4 /1 4 /7 1 4 /2 2 /7 1 — 4 /2 8 /7 1 4 /1 5 /7 1 — 4 /2 1 /7 1 4 /2 9 /7 1 — 5 / 5 /7 1 4 /2 2 /7 1 — 4 /2 8 /7 1 5 / 6 /7 1 — 5 /1 2 /7 1 4 /2 9 /7 1 — 5 / 5 /7 1 5 /1 3 /7 1 — 5 /1 9 /7 1 5 / 6 /7 1 — 5 /1 2 /7 1 5 /2 0 /7 1 — 5 /2 6 /7 1 5 /1 3 /7 1 — 5 /1 9 /7 1 5 /2 7 /7 1 — 6 / 2 /7 1 5 /2 0 /7 1 — 5 /2 6 /7 1 6 / 3 /7 1 — 6 / 9 /7 1 5 /2 7 /7 1 — 6 / 2 /7 1 6 /1 0 /7 1 — 6 /1 6 /7 1 6 / 3 /7 1 — 6 / 9 /7 1 6 /1 7 /7 1 — 6 /2 3 /7 1 6 /1 0 /7 1 — 6 /1 6 /7 1 6 /2 4 /7 1 — 6 /3 0 /7 1 B-l (over) FEDERAL RESERVE BANK OF DALLAS BULLETIN 4 BASE PERIOD RELATED RESERVE PERIOD For Reporting Deposits and Currency & Coin For Maintained Reserves Begins Ends Begins Ends 6 /17/71— 6/23/71 7/ 1 /7 1 — 7/ 7/71 6 /2 4 /7 1 — 6/30/71 7 / 8 /7 1 — 7/14/71 7/ 1 /7 1 — 7 / 7/71 7/15/71— 7/21/71 7/ 8 /7 1 — 7/14/71 7/22/71— 7/28/71 7/15/71— 7/21/71 7/29/71 — 8 / 4/71 7/22/71— 7/28/71 8 / 5 /7 1 — 8/11/71 7/29/71— 8 / 4/71 8 /12/71— 8/18/71 8/ 5 /7 1 — 8/11/71 8 /1 9 /7 1 — 8/25/71 8/1 2/7 1— 8/18/71 8 /26/71— 9 / 1/71 8 /1 9/7 1— 8/25/71 9 / 2 /7 1 — 9 / 8/71 8 /26/71— 9 / 1/71 9 / 9 /7 1 — 9/15/71 9 / 2 /7 1 — 9 / 8/71 9 /16/71— 9/22/71 9 / 9 /7 1 — 9/15/71 9 /2 3 /7 1 — 9/29/71 9 /16/71— 9/22/71 9/30/71 — 10/ 6/71 9 /2 3/7 1— 9/29/71 10/ 7/71 — 10/13/71 9/30/71 — 10/ 6/71 10/ 7/71 — 10/13/71 10/14/71 — 10/20/71 10/14/71 — 10/20/71 10/28/71— 11/ 3/71 10/21/71 — 10/27/71 11/ 4/71 — 11/10/71 10/28/71 — 11/ 3/71 11/11/71 — 11/17/71 11/ 4/71 — 11/10/71 11/18/71 — 11/24/71 11/11/71 — 11/17/71 11/25/71 — 12/ 1/71 11/18/71 — 11/24/71 12/ 2/71 — 12/ 8/71 11/25/71— 12/ 1/71 12/ 9/71 — 12/15/71 12/ 2/71 — 12/ 8/71 12/16/71 — 12/22/71 12/ 9/71 — 12/15/71 12/23/71 — 12/29/71 12/16/71 — 12/22/71 12/30/71— 1 / 5/72 10/21/71 — 10/27/71
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