The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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.