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F ed er a l r e s e r v e Ba n k o f Da lla s DALLAS, TEXAS 75222 Circular No. 68-169 August 9,1968 RESERVES OF MEMBER BANKS (Amendment to Regulation D) To All Member Banks in the Eleventh Federal Reserve District: Reference is made to Circular Letter No. 68-107 of M a y 1, 1968, transmitting the statement of April 29, 1968, by the Board of Governors of the Federal Reserve System pertaining to the adoption of an amendment to its Regulation D, “Reserves of Member Banks,” effective with the reserve computation period beginning September 12, 1968. The Amendment effects several changes in the computation of reserve requirements by member banks. The changes made by the Amendment include: 1. Establishing a one-week reserve period for the so-called “country banks” instead of their present two-week period, thus putting them on the same basis now used for reserve city banks; 2. Using average deposits two weeks earlier in calculating the weekly average required re serves for the present period; 3. Using vault cash held two weeks earlier, together with average balances at the Federal Reserve Bank for the current week, in the computation of weekly average reserves held in satis faction of the requirements; 4. Providing that either excesses or deficiencies averaging up to 2 percent of required reserves m a y be carried forward to the next reserve week; and 5. Showing balances on the Report of Deposits and Related Data as of the close of business each day instead of the opening of business as heretofore. These new rules by which member banks will compute and comply with system reserve re quirements do not represent any change in Federal Reserve monetary policy, but are alterations in a technical regulation and are designed to facilitate more efficient functioning of the reserve mechanism. In combination, these changes are expected to reduce uncertainties, both for member banks and the Federal Reserve, as to the amount of reserves required during the course of any reserve period. Their adoption should moderate some of the pressures for reserve adjustments within the banking system that can occasionally develop near the close of a reserve period and can produce sharp fluctuations in the availability of day-to-day funds. In accordance with the adoption of the Amendment to Regulation D, Bulletin No. 4 of the Federal Reserve Bank of Dallas entitled “Reserves of Member Banks” has been revised, effective September 12, 1968, to reflect the changes referred to above. Page 4 of Bulletin No. 4 entitled “Computation of Reserve to be Carried With the Federal Reserve Bank by Member Banks” reflects necessary changes arising from the Amendment to Regulation D specifying the reporting of daily deposit balances and daily currency and coin held by the member bank at the C L O S E of business each day. The form has also been changed to provide for the inclusion of deposits in the Savings note account with other U. S. Government demand deposits. As an aid to member banks, there is enclosed “Procedure for Reserve Computation” explaining the procedures adopted by this bank relative to the Amendment. A supply of a new two-part Report of Deposits and Related Data form will be forwarded to each member bank in advance of the effective date of the change in Regulation D. W h e n the enclosed Bulletin No. 4 becomes effective, as noted herein, it should be substituted for the Bulletin No. 4 now filed in the ring binder of regulations and bulletins furnished by this bank. Please acknowledge receipt of the revised Bulletin and Procedure for Reserve Computation” by signing and returning the enclosed postal card. Yours very truly, P. E. Coldwell President Attachments (3) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) F ederal reserve Ba n k DALLAS, TEXAS of Dallas 75222 PROCEDURE FOR RESERVE COMPUTATION As an aid in keeping abreast of required reserves under the amendment to Regulation D, effective with the reserve computation period beginning September 12, 1968, member banks will be provided with additional information which will appear as the last page of the present daily Reserve Account Statement. A format of the last page of the Reserve Account Statement reflecting the average daily reserve computation is as follows: FEDERAL RESERVE BANK OF DALLAS M A IL T O A B C N A T IO N A L B A N K ANYW HERE, TEXAS R ESERV E A C C O U N T STATEMENT D E S C R IPT IO N ACCT. N O . 1234 DATE PAGE 10-4 -68 2 P R E V IO U S DAYS BALANCE D E B IT S V C R E D IT S V B" ' H A V E R A G E D A IL Y R E S E R V E C O M P U T A T IO N S F O R C U R R E N T P E R IO D TO D A T E R E S E R V E R E Q U IR E M E N T ................................... ......................................... 100,000.00 C U R R E N C Y A N D C O IN .......................................... 20,000.00 R E S E R V E S M A IN T A IN E D A T F R B .................. 76,000.00 ........................................ 96,000.00 T O T A L R E S E R V E S M A IN T A IN E D IN D IC A T E D D E F IC IE N C Y ................................... ........................................ 4,000.00— E X C E S S F R O M P R E V IO U S W E E K .................. ........................................ 1,500.00 R E S U L T IN G D E F IC IE N C Y ................................... ........................................ 2,500.00— T H E S E C O M P U T A T IO N S DO N O T I N C L U D E A N A L Y S I S A D J U S T M E N T S A C -1 6 2 RBV. 8 - 6 8 P L E A S E V E R IF Y R E S E R V E C O M P U T A T IO N S A G A IN S T Y O U R R E C O R D S . R E F E R P O S T IN G E X C E P T IO N S IM M E D IA TE LY T O O U R G E N E R A L A U D IT O R . It should be noted in the above example, dated October 4, 1968, that an average daily reserve requirement of $100,000 has been calculated for this bank for the weekly period ended October 9, 1968. This figure is based on the daily deposit figures taken from the Report of Deposits and Related Data for the week ended September 25, 1968. Likewise, currency and coin is an average figure com puted from the same Report of Deposits. The $76,000 shown opposite the caption “R E S E R V E S M A I N T A I N E D A T F R B ” is the average of the bank’s daily reserve account balance as shown on the Reserve Account Statement for the week to date. The $96,000 opposite the caption “T O T A L R E S E R V E S M A I N T A I N E D ” is the sum of “C U R R E N C Y A N D C O I N ” and “R E S E R V E S M A I N T A I N E D A T F R B ”, or $20,000 and $76,000. The $4,000 opposite the caption “I N D I C A T E D D E F ICIENCY” is arrived at by subtracting the total reserves maintained from the reserve require ment and reflects the amount that the bank in this example is deficient thus far during the weekly computation period. In the event that this bank had total reserves maintained larger than its reserve requirement, this caption would have read “I N D I C A T E D E X C E S S ” and the amount of the excess would have been shown. The $1,500 opposite the caption “E X C E S S F R O M P R E V I O U S W E E K ” assumes that this bank had maintained an average daily excess of $1,500 for the weekly period ended October 2 which is brought forward in accordance with the 2 percent carry-forward provision of Regulation D. In the event that this bank had maintained an average daily deficiency for the weekly period ended October 2 this caption would have read “D E F I C I E N C Y F R O M P R E V I O U S W E E K ” and the amount would have been shown. The $2,500 opposite the caption “R E S U L T I NG D E F I C I E N C Y ” represents the amount that this bank is deficient thus far for the weekly period ended October 9. It represents the average daily deficiency of $4,000 less the carry-forward average daily excess from the previous week of $1,500. In the event this computation resulted in an excess reserve position, this caption would have read “R E S U L T I N G E X C E S S ” and the amount of the excess would have been shown. In any event, the resulting excess or deficiency will be a mathematical computation of the indicated excess or deficiency for the current week plus or minus an excess or deficiency from the previous week. As a further aid, member banks are to receive weekly a Preliminary Statement of Reserve Position. It is intended that this statement reach member banks by Friday following the close of each reserve period. Accordingly, each member bank should have sufficient time to adjust its reserve position in order to benefit from the 2 percent carry-forward provision of Regulation D. A format of the Preliminary Statement of Reserve Position is as follow s: FEDERAL RESERVE BANK OF DALLAS M A IL T O ABC NATIONAL BANK ANYW HERE, TEXAS ACCT. N O. 1234 P R E L IM IN A R Y STA TEM EN T O F R ESER V E PO SIT IO N W EEKLY P E R IO D EN D ED 1 0 - 9 - 6 8 THE FOLLOWING ARE AVERAGE DAILY FIGURES RESERVE REQUIREMENT ..................................... -....... -.........................................100,000.00 CURRENCY AND COIN................................................................................................. 20,000.00 RESERVES M AINTAINED AT FR B....................................................................... 76,000.00 TOTAL RESERVES MAINTAINED..................................................... .................... 96,000.00 DEFICIENCY FOR CURRENT WEEK.......... ........................................................ 4,000.00— EXCESS AVAILABLE FROM PREVIOUS W EE K .. ............................................ 1,500.00 REMAINING NET DEFICIENCY.............................................................................. 2,500.00— ALLOWABLE DEFICIENCY CARRIED TONEXT W EEK............................... 2,000.00— A C -2 IB 7 -6 8 T H I S S T A T E M E N T IS P R E P A R E D F O R Y O U R IN F O R M A T IO N . P L E A S E V ER IFY R E S E R V E C O M P U T A T IO N S A G A IN ST Y O U R R E C O R D S . It should be noted in the above example that the reserve requirement of $100,000 is the average daily requirement for the weekly period ended October 9, 1968. This figure is based upon the daily deposit figures taken from the Report of Deposits and Related Data for the week ended September 25, 1968. Likewise, the $20,000 shown opposite the caption “CURRENCY AND COIN” is computed from the Report of Deposits and Related Data for the week ended September 25. The $76,000 opposite the caption “RESERVES MAINTAINED AT FRB” is the average daily reserves this bank has maintained as shown on the Reserve Account Statement that is furnished each member bank daily. This figure does not include any amount that may be carried forward under the 2 per cent carry-forward of excess or deficiency as provided in Regulation D. The $96,000 opposite the caption “TOTAL RESERVES MAINTAINED” is an addition of the amounts for “CURRENCY AND COIN” and “RESERVES MAINTAINED AT FRB”. The $4,000 opposite the caption “DE FICIENCY FOR CURRENT WEEK” is the amount that this bank is deficient on an average daily basis for the weekly period ended October 9. It is the result of subtracting the ‘TOTAL RESERVES MAINTAINED”, or $96,000, from the “RESERVE REQUIREMENT” of $100,000. Again this figure does not take into consideration any amount under the 2 percent carry-forward provision of Regulation D. In the event this bank had more total reserves maintained than its reserve require ment, the amount would have been shown opposite the caption “EXCESS FOR CURRENT WEEK”. The $1,500 shown opposite the caption “EXCESS AVAILABLE FROM PREVIOUS WEEK” assumes that this bank had maintained an average daily excess of $1,500 for the weekly period ended October 2 which is brought forward in accordance with the 2 percent carry-forward provision of Regulation D. If this bank had not maintained any excess reserves at the Federal Reserve Bank for the weekly period ended October 2 or had maintained an average daily deficiency, this caption would have read “NO EXCESS AVAILABLE FROM PREVIOUS WEEK” and no amount would be shown opposite this caption. In any case, where the bank has incurred a deficiency for the current period, only an excess from the previous week could be applicable. Conversely, if this bank had maintained an excess for the current period (the weekly period ended October 9) only a deficiency from the previous week would be brought forward and this caption would then read “DEFICIENCY FROM PREVIOUS WEEK”. 2 The $2,500 opposite the caption “R E M A I N I N G N E T D E F I C I E N C Y ” is determined by sub tracting the $1,500 excess available from the previous week from the $4,000 deficiency for the cur rent week. If this bank had maintained an excess for the current week or did not have a deficiency from the previous week as large as the excess for the current week, this caption would have read “R E M A I N I N G N E T E X C E S S ” and the amount of the excess would be shown. The $2,000 opposite the caption “A L L O W A B L E D E F I C I E N C Y C A R R I E D T O N E X T W E E K ” is the amount that m a y be carried forward to the next weekly period in accordance with Regulation D and is 2 percent of the $100,000 or the amount shown opposite the caption “R E S E R V E R E Q U I R E M E N T ”. Conversely, if this bank had a remaining net excess rather than a deficiency, this caption would read “A L L O W A B L E E X C E S S C A R R I E D T O N E X T W E E K ”.In either event, the amount will be either 2 percent of the reserve requirement or the amount of the remaining net excess or deficiency, whichever is less. In addition to the Preliminary Statement of Reserve Position, each member bank will receive weekly a Final Statement of Reserve Position. A format of the Final Statement of Reserve Position is as follows: FEDERAL. RESERVE BANK O F DALLAS M AIL TO ABC NATIONAL BANK ANYW HERE, TEXAS accv. n°. 1234 F IN A L . S T A T E M E N T O F R ESER V E PO SIT IO N WEEKLY PE R IO D EN D ED 1 0 - 9 - 6 8 THE FOLLOWING ARE AVERAGE DAILY FIGURES RESERVE REQUIREMENT ....................................................................... —............ 100,000.00 CURRENCY AND COIN ............................................................................................... 20,000.00 RESERVES M AINTAINED AT FRB....................................................................... 76,000.00 TOTAL RESERVES M AINTAINED.................................................. -........... .......... 96,000.00 DEFICIENCY FOR CURRENT W EEK..................................... ............................... 4,000.00— EXCESS AVAILABLE FROM PREVIOUS W EEK.............................................. 1,500.00 REMAINING NET DEFIC IEN C Y .......................................................... ........... ....... 2,500.00— DEFICIENCY CARRIED TO WEEK ENDED 10-16-68___________ _______ FIN AL DEFICIENCY .................. ....................... ........................... ......... .................. 1,800.00— 700.00— PENALTY AT 7% PERCENT.................................. .......................... ......... ............... A c -2 ie 1.01 7 -ee T H IS STA TEM EN T IS P R E P A R E D F O R Y OU R IN FO R M A T IO N . P L E A S E V E R IF Y R E S E R V E C O M P U T A T IO N S A G A IN S T Y O U R R E C O R D S . It is intended that the Final Statement of Reserve Position will be prepared and forwarded to member banks one week after the period to which it pertains. In the case of the above example, the statement would be prepared and forwarded on October 17, 1968, pertaining to the weekly period ended October 9, 1968. It should be noted in the above example for the weekly period ended October 9 that the figures and captions are exactly the same as on the Preliminary Statement of Reserve Position through and including “R E M A I N I N G N E T D E F I C I E N C Y ”. The $1,800 opposite the caption “D E FICI E N C Y C A R R I E D T O W E E K E N D E D 10-16-68” represents, for the purpose of this illustration, the amount this member bank maintained in excess reserves during the week ended October 16,1968. In the event this bank sustained a deficiency or did not maintain any excess for the week ended October 16 this caption would have read “N O D E F I C I E N C Y C A R R I E D T O W E E K E N D E D 10-16-68”. In this example, where the bank has a remaining net deficiency for the week ended October 9 only an excess for the week ended October 16 could be used as an offset. As before, this amount will be 2 percent of the reserve requirement for the weekly period in question (in this example October 9) or the amount of the allowable excess or deficiency carried to next week from the Preliminary Statement of Reserve Position, whichever is less. It should be noted that a deficiency 3 of 2 percent or less which is completely offset by excess reserves will not be reflected on the member bank's reserve account record as a deficiency. The $700 opposite the caption “F I N A L D E F I C I E N C Y ” is determined by subtracting the “D E F I C I E N C Y C A R R I E D T O W E E K E N D E D 10-16-68” or $1,800 from the “R E M A I N I N G N E T D E F I C I E N C Y ” or $2,500. In the event a member bank’s final posi tion reflects an excess, this statement would read “F I N A L E X C E S S ” and indicate the amount. In either event, the amount opposite the caption “F I N A L E X C E S S ” or “F I N A L D E F I C I E N C Y ” will be the final reserve position for this bank for the weekly period indicated at the top of the statement. This figure will take into consideration the 2 percent carry-forward provision of Regu lation D from the weekly period ended October 2 to the weekly period ended October 9 and from the weekly period ended October 9 to the weekly period ended October 16. The $1.01 opposite the caption “P E N A L T Y A T 7Y2 P E R C E N T ” would be the applicable penalty on a one-week average daily deficiency of $700. The 7 % percent figure is based on Section 204.3(b)(2) of Regulation D which states that penalties will be assessed at a rate of 2 percent per annum above the lowest rate applicable to borrowings by each member bank from its Federal Reserve Bank on the first day of the calendar month in which the deficiencies occurred. In the event of a final deficiency, this form will be accompanied by a letter indicating the disposition of the penalty. Otherwise the form will reflect a final excess and will be forwarded to the member bank for its information. 4 BULLETIN No. 4 Effective September 12, 1968 FEDERAL RESERVE BANK OF DALLAS (Superseding Bulletin No. 4, dated January 11, 1968) RESERVES OF MEMBER BANKS To All Member Banks in the Eleventh Federal Reserve District: 1. Unless otherwise stated, all references to the Federal Reserve Bank of Dallas include the head office and all of its branches. 2. Under Section 19 of the Federal Reserve Act, as amended, every member bank is required to establish and maintain a reserve balance as pre scribed by the Board of Governors of the Federal Reserve System within the limitations set forth in the section mentioned. The percentages applicable, respectively, to banks not in reserve cities and those in reserve cities will be found in the current Supplement to Regulation D issued by the Board of Governors of the Federal Reserve System which also includes current instruc tions regarding the counting of currency and coin as reserves. DEFINITIONS 3. For the determination of the reserve status of member banks, the Board of Governors of the Federal Reserve System defines the various classes of deposits, cash items in process of collection, balances subject to immediate withdrawal due from other banks, and currency and coin, which includes currency and coin in transit to or from a Federal Reserve Bank. The Board’s definitions will be found in Sections 204.1 and 204.2 (b) of Regulation D as amended. REPORTS OF DEPOSITS AND RELATED DATA 4. As soon as practicable after the close of business on each Wednesday, each member bank should send to the Federal Reserve Bank a Report of Deposits and Related Data. At the close of the reserve computation period (every Wednesday for all member banks), the Report of Deposits and Related Data will be used in determining the amount of reserves required by law to be maintained in the reserve computation period beginning eight days and ending two weeks after the close of the period for which the Report of Deposits and Related Data was submitted. 5. It is important that the completed Report of Deposits and Related Data be sent to the Federal Reserve Bank promptly after the close of each reserve computation period. Since, as noted below, the balances for a given day are the balances at the CLOSE of business that day, it should be possible to send the report each Thursday, even though the practice of “delayed post ing” is followed. The cooperation of member banks in sending the reports each Thursday will be greatly appreciated. —2— BULLETIN No. 4 6. Amounts reported for each date on the Report of Deposits and Related Data, including amounts reported as currency and coin, should be the balances at the CLOSE of business on that date. Accordingly, if Saturday is not a business day, balances for Saturday and Sunday will be identical and will be those at the close of business on Friday. If Saturday is a business day, the balances for Sunday will be identical with those as of the close of business on Saturday. Balances reported for a holiday will be those at the close of the preceding business day and new balances will be reported for the next follow ing business day. The amount of the reserve balance maintained at the Federal Reserve Bank is computed at the CLOSE of business each business day and repeated for each next subsequent nonbusiness day. 7. It will be observed that at the top of each column of the form provided for reporting deposits and related data, there is inserted a reference to the corresponding items and schedules in the call reports of condition. It is believed that the use of these references will assist member banks in the proper preparation of the Report of Deposits and Related Data. It should be noted that the figures for U. S. Government demand deposits (column 2) should include balances in the Treasury tax and loan account, the Series E bond account, and Savings note account, as well as all demand deposits of public monies made by or for the account of the United States or some department, bureau, or official thereof. Amounts reportable as currency and coin (column 9) should include currency and coin in transit to or from the Federal Reserve Bank. For complete definitions of U. S. Government demand deposits and of currency and coin, attention is directed to the instructions for preparation of reports of condition issued by the banking supervisory authorities. COMPUTATION OF RESERVES 8. A formula is provided on page 4 of this Bulletin as a guide to use in the determ ination of the amount of reserves required under Section 204.3(a)(2) of Regulation D. As indicated by parenthetical references, the various items in this formula correspond to certain items and schedules in the call reports of condition. Each member bank is urged to make its own compu tation of reserves required and maintained so as to keep in close touch with its reserve position on a current basis, keeping in mind that reserves to be maintained in the current computation period are based on the requirement established from the Report of Deposits and Related Data of two weeks earlier. 9. It will be noted that the Report of Deposits and Related Data provides a copy for the reporting bank’s file showing all of the deposit and other figures which are reported. It is hoped that this copy, together with the formula mentioned above and the explanation in the following paragraph, will aid member banks in making their own reserve computations. 10. It should be emphasized that the reserve to be maintained with the Federal Reserve Bank as computed in item 7 on page 4 of this Bulletin represents the reserve to be maintained during the second computation period following the period for which this computation is made. PENALTIES FOR DEFICIENCIES IN RESERVES 11. As provided in Section 204.3(a) (1) of Regulation D, reserve require ments of all member banks shall be determined on the basis of average daily —3— BULLETIN No. 4 net deposit balances and average daily currency and coin during the reserve computation periods which shall end at the close of business on Wednesday of each week. 12. It should be noted that any excess or deficiency in a member bank’s required reserve balance for any reserve computation period will be carried forward to the next following reserve computation period to the extent that such excess or deficiency does not exceed 2 percent of such required reserves, except that any portion of such excess or deficiency not offset in the next period may not be carried forward to additional computational periods. Upon the final determination of a member bank’s reserve deficiency, notification will be made by letter. Any remaining deficiencies in reserve balances after the application of the 2 percent carry-forward of the excess or deficiency provision will be subject to penalties assessed monthly on the basis of average daily deficiencies during any of the reserve computation periods ended in the preceding calendar month. The 2 percent carry-forward provision was adopted with the objective of reducing the number of occasions on which member banks might otherwise incur deficient reserve penalties. 13. The penalty for deficiencies in reserves will be assessed at a rate of 2 percent per annum above the lowest rate applicable to borrowings by each member bank from its Federal Reserve Bank on the first day of the calendar month in which the deficiencies occurred. WAIVER OF PENALTIES 14. The Board of Governors has granted the Federal Reserve Banks authority, in their discretion, to waive the assessment of penalties for defici encies in the reserves of member banks in certain cases, particularly when the penalty is small and when it is evident that the bank is making appropriate efforts to follow the requirements of the law. 15. The law contemplates, however, that member banks should make reasonable efforts to hold and maintain the prescribed reserve balances from day to day, making allowance for unforeseen fluctuations in reserve account balances, even though penalties are assessed on average daily deficiencies over prescribed periods. 16. The right is reserved to withdraw, add to, or amend at any time, any of the provisions of this Bulletin. Yours very truly, P. E. Coldwell President FOR T H E FORM ULA FO R “CO M PUTA TION O F R ESERV E TO BE CARRIED W IT H T H E FED ERA L R E SER V E BANK BY MEM BER BANKS” U N D ER T H E AM EN DM EN T TO REGULATION D, SEE T H E FO LLOW ING PAGE. BULLETIN No. 4 —4— COMPUTATION OF RESERVE TO BE CARRIED WITH THE FEDERAL RESERVE BANK BY MEMBER BANKS (F o r definitions of th e te rm s gross dem and deposits, deductions allow ed in com puting reserv es, cash item s in process o f collection, n e t dem and deposits, tim e deposits, a nd cu rre n c y a n d coin, see R eg ulation D o f th e B oard of G overnors of th e F e d e ra l R eserve System . R eference to call re p o rt item n um b ers, show n below, a re to those in th e fo rm used a t th e J u n e 1968 call.) 1. GROSS DEM A N D D E P O S IT S : (a) D em and deposits o f b anks1 (close of business) (C orresponds to item s 1, 8, a n d 9 in Schedule E o f call re p o rt o f condition) (b) U . S. G overnm ent dem and deposits2 (close o f business) (C orresponds to item 5 in Schedule E of call re p o rt of condition) - $------------ .—_-------- (c) O th e r dem and deposits (close of business) -----------(C orresponds to item s 2, 3, 6, 7, a n d 10 in Schedule E of call re p o rt of condition) * 2. D E D U C TIO N S A L L O W E D IN C O M PU T IN G R E S E R V E S : (a ) Cash item s in process o f collection, ex cept to th e e x te n t included in item 2(b ) (includ in g checks w ith F e d e ra l R eserve B anks in process of collection a n d checks on h a n d w hich w ill be p re sen te d fo r p a y m e n t o r fo rw a rd e d fo r collection on th e follow ing business day) (close of business) (C orresponds to item 1 in Schedule D of call re p o rt of condition) (b) B alances su b jec t to im m ediate w ith d ra w a l due fro m o th e r b a n k s (inclu ding cash item s fo rw ard ed to a c o rre sp o n d en t b a n k fo r collection a n d c red it and c harged to “ D ue fro m b a n k s,” b u t excluding balances due fro m F e d e ra l R eserve B anks, fro m fo reig n b ank s o r b ran ch es th ereo f, fro m fo reig n b ranch es of dom estic b a n k s.1) (close o f business) (C orresponds to item 2 in Schedule D o f call re p o rt o f condition) 3. N E T D EM A N D D E P O S IT S (item 1 m inus item 2) 4. T O T A L T IM E D E P O S IT S 3 (close o f business) (a ) Saving s deposits (close o f business) (C orresponds to item 1 in Schedule F o f call re p o rt of condition) (b) O th e r tim e deposits (close o f business) (C orresponds to item s 3, 4, 5, 7, 8, 9, 10, and 11 in Schedule F o f call re p o rt o f condition) 5. R E S E R V E S R E Q U IR E D 1: (a ) On n e t dem and deposits (item 3 a b o v e ): (1) U p to 5 m illion, ------------ p e rc e n t - ■ (2) In excess of 5 m illion, ________ p e rc e n t ■ (b) O n a ll sav in g s deposits (item 4 (a ) above) ; a n d on o th e r tim e deposits u p to 5 m illion, ________ p e rc e n t (c) On all o th e r tim e deposits, ------------ p e rc e n t (d) T o tal reserves req u ired to be m a in ta in e d - - - - - - - C urrency a n d Coin (close o f business) (C orresponds to item 5 in Schedule D o f call re p o rt of condition) R eserve to be m a in ta in e d w ith F e d e ra l R eserve B an k 5 (Item 5(d) m in u s item 6) - - R e c ip r o c a l in te rb a n k dem and deposits w ith b anks in th e U nited S ta te s, except A m erican bra n c h es o f fo reig n ban k s, m u s t be re p o rte d net. in c lu d e s deposits in T re a s u ry ta x a n d loan account, Series E bond account, a n d Saving s n o te account. 3C h ristm as sav in gs, v a ca tio n club, a nd s im ila r types of tim e deposit accounts should be included w ith S av in gs deposits (item 4a) a nd excluded fro m O th e r tim e deposits (item 4b) fo r purposes of th is re p o rt. E xcept fo r th is difference item references noted apply. 4F o r c u rre n t requ ired reserve p e rc en tag e a g a in st th e deposit to ta ls fo r b a n k s in reserv e cities a nd fo r b anks located elsew here, see la te s t su p p lam en t to R eg u latio n D. BT his a m o u n t is th e av erag e daily reserve to be m a in ta in e d w ith th e F ederal R eserve B a n k in th e second com p utation period follow ing th e period fo r w hich th is com putatio n is m ade a n d i t does n o t ta k e in to consideratio n th e 2 p e rc e n t c a rry -fo rw a rd provision o f R eg u latio n D.
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