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Federal

reserve

Bank

OF DALLAS

Dallas, Texas, April 18, 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 in reserve and central reserve cities. 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 the reserves required to be maintained
by central reserve city banks against demand deposits by y2 of one per cent,
effective April 17, and by an additional y2 of one per cent effective April 24.
Effective April 24, the Board has also reduced the reserves required to be main­
tained by reserve city banks against demand deposits by y2 of one per cent.
“ This action will release about $450 million from present required reserves.
The reduction for central reserve cities from 19 per cent to lS 1 per cent, effec­
/^
tive April 17, will release about $130 million of reserves, and the reduction from
I8 I per cent to 18 per cent, effective April 24, will release about the same
/2
amount. At reserve city banks the reduction from 17 per cent to 1 6 ^ per cent,
effective April 24, will release about $190 million.”
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)

SUPPLEM ENT T O R E G U L A T IO N D

ISSUED BY THE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Effective as to each member bank at the opening o f business on April 17,
1958, except as otherwise indicated.

Reserves required to be maintained by m em ber banks
with Federal Reserve Banks
Pursuant to the provisions o f section 19 o f the Federal Reserve Act
and section 2 (a ) o f its Regulation D, the Board o f Governors of the
Federal Reserve System hereby prescribes the following reserve balances
which each member bank of the Federal Reserve System is required to
maintain on deposit with the Federal Reserve bank o f its district:
1.

I f not in a reserve or central reserve city —■
(a )
(b )

5 per cent o f its time deposits, plus
11 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 of a reserve city or in territory added to such city by the exten­
sion of the city’s corporate limits, which, by the affirmative vote of
five members o f the Board of 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 )

17 per cent o f its net demand deposits until the opening o f
business on April 24, 1958, and I6yt> per cent o f its net
demand deposits thereafter.

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 of 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 speci­
fied in paragraph 1 or 2 above) —
(a )

5 per cent of its time deposits, plus

(b )

1 8 ^ per cent o f its net demand deposits until the opening
for business on April 24, 1958, and 18 per cent o f its net
demand deposits thereafter.

The supplements to Regulation D which have previously been issued
are hereby revoked and superseded.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102