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F ederal reserve Bank
OF DALLAS

Dallas, Texas, February 20, 1958

RESERVES REQUIRED TO BE M AINTAINED BY MEMBER
BANKS WITH FEDERAL RESERVE BANKS

To the Member Banks of the
Eleventh Federal Reserve District:

The Board of Governors of the Federal Reserve System has announced the adoption
of a supplement to Regulation D, which has the effect of reducing reserve requirements
of member banks. Copy of the supplement is enclosed.
The following press statement was released by the Board in regard to its action in
reducing reserve requirements:
“ The Board of Governors has reduced by 1/2 of one per cent reserves required
to be maintained by member banks of the Federal Reserve System against
demand deposits.
“ This action will release about $500 million from present required reserves.
For central reserve city banks the reduction from 20 per cent to 19 ^ per cent of
net demand deposits will release about $125 million of reserves. At reserve city
banks, the reduction from 18 per cent to 17V& per cent will release about $195
million, and at country banks the change from 12 per cent to 11 ^ per cent will
release approximately $180 million.
“ For central reserve city and reserve city banks, the effective date for the
new requirements is February 27, 1958, and for country banks, March 1, 1958.”
The supplement to Regulation D should be filed in the ring binder containing current
bulletins of this bank and the regulations of the Board of Governors of the Federal Reserve
System. Please acknowledge receipt on the enclosed postal card.
Yours very truly,

Watrous H. Irons
President

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

SUPPLEMENT TO REGULATION D

ISSUED BY THE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Effective as to Member Banks not in Reserve and Central Reserve
Cities at opening o f business on March 1, 1958, and as to
Member Banks in Reserve and Central Reserve
Cities at opening o f business on February 27, 1958

Reserves required to be maintained b y m em ber banks
with Federal Reserve banks
Pursuant to the provisions o f section 19 o f the Federal Reserve A ct
and section 2 (a ) o f its Regulation D, the Board o f Governors o f the
Federal Reserve System hereby prescribes the following reserve balances
which each member bank o f the Federal Reserve System is required to
maintain on deposit with the Federal Reserve bank of its district:
1. If not in a reserve or central reserve city—
(a ) 5 per cent o f its time deposits, plus
(b ) 1 1 ^2 per cent o f its net demand deposits.
2. I f in a reserve city (except as to any bank located in an outlying
district o f a reserve city or in territory added to such city by the exten­
sion o f the city’s corporate limits, which, by the affirmative vote o f
five members o f the Board o f Governors o f the Federal Reserve
System, is permitted to maintain the reserves specified in paragraph 1
above)—
(a ) 5 per cent o f its time deposits, plus
(b ) 17y2 per cent o f its net demand deposits.
3. I f in a central reserve city (except as to any bank located in an
outlying district o f a central reserve city or in territory added to such
city by the extension o f the city’s corporate limits, which, by the
affirmative vote o f five members o f the Board of Governors o f the
Federal Reserve System, is permitted to maintain the reserves speci­
fied in paragraph 1 or 2 above)—
(a ) 5 per cent o f its time deposits, plus
(b ) 19^2 per cent o f its net demand deposits.
The supplements to Regulation D which have previously been issued
are hereby revoked and superseded.