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F ederal Reserve Bank of Dallas DALLAS, TEXAS 75222 C ir c u l a r No. 75-163 O ctober 27, 1975 American Revolution Bicentennial SUPPLEMENT TO REGULATION D TO ALL MEMBER BANKS IN THE ELEVENTH FEDERAL RESERVE DISTRICT: Reference is made to C ir c u l a r No. 75-159, da te d O ctober 20, 1975, r e g a r d i n g the a n n o u n c e m e n t by th e Board of G o v e r n o r s of a c h an g e in Regulation D re d u c in g the r e s e r v e r e q u ir e m e n ts on m ember b a n k time d e p o sits with an original m aturity of fo ur y e a r s o r more. T h e r e s e r v e re q u ir e m e n ts on time d e p o s its with a n original ma t u r i ty of four y e a r s or more w e r e r e d u c e d from 3 p e r c e n t to 1 p e r c e n t . T h e new r e s e r v e ratio a p p lie s to the level of d e p o s its b e g in n in g with the w eek of October 16-22 a nd will affect r e q u i r e d r e s e r v e s b e g in n in g with the statem ent week of October 30-November 5. T h e new S upplem ent to Regulation D re fle c ting the re d u c tio n in r e s e r v e re q u ir e m e n ts is e n c lo s e d . T h is new Sup ple m e nt, effective Octo b e r 16, 1975, should be filed with y o u r cop y of Regulation D in y o u r R eg u lations b i n d e r , a n d the c o r r e s p o n d i n g Su p p le m e n t, dated May 22, 1975, should be removed a n d d e s t r o y e d . If you have a ny q u e stio n s r e g a r d i n g Regulation D, p le a se contact C. L. Vick a t (214) 651-6333 o r E . W. Vorlop, J r . a t (214) 651-6223. Additional copies of th e S upplem ent to Regulation D will be f u r nish ed upon r e q u e s t to the S e c r e t a r y 's Office of this Bank. Sincerely yours, T . W. Plant First Vice President E n c losure This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM RESERVES OF MEMBER BANKS SUPPLEM ENT TO R EG U LA T IO N D As amended effective October 16,1975 SECTION 204.5— R ESE R V E REQ U IREM EN TS (a) R eserve p ercen tages. P u rs u a n t to the provisions of section 19 of the Federal Reserve Act and § 204.2(a) and subject to paragraph (c) of this section, the Board of Governors of the Fed eral Reserve System hereby prescribes the follow ing reserve balances that each member bank of the Federal Reserve System is required to main tain on deposits with the Federal Reserve Bank of its district. (1) If not in a reserve city— deposits are in excess of $10 million but less than $100 million, or (d) $11,750,000 plus 13 percent of its net demand deposits in excess of $100 mil lion. (2) If in a reserve city (except as to any bank located in such a city that is permitted by the Board of Governors of the Federal Reserve Sys tem, pursuant to § 2 0 4 .2 (a )(2 ), to maintain the reserves specified in subparagraph (1) of this paragraph) — (i) 3 percent of (a) its savings deposits and (6) its time deposits, open account, that constitute deposits of individuals, such as Christmas club accounts and vacation club accounts, that are made under written contracts providing that no withdrawal shall be made until a certain number of periodic deposits have been made during a period of not less than 3 months; and (i) 3 percent of (a) its savings deposits and (b) its time deposits, open account, that constitute deposits of individuals, such as Christmas club accounts and vacation club accounts, that are made under written contracts providing that no withdrawal shall be made until a certain number of periodic deposits have been made during a period of not less than 3 months; and (ii) 1 percent of its time deposits outstanding on or issued after October 16, 1975, that have an initial maturity of 4 years or more; 3 percent of its time deposits outstanding on or issued after October 16, 1975, that have an initial maturity of 180 days or more but less than 4 years; 3 percent of its time deposits up to $5 million, outstanding on or issued after October 16, 1975, that have an initial maturity of less than 180 days, plus 6 per cent of such deposits in excess of $5 million. (ii) 1 percent of its time deposits outstanding on or issued after October 16, 1975, that have an initial maturity of 4 years or more; 3 percent of its time deposits outstanding on or issued after October 16, 1975, that have an initial maturity of 180 days or more but less than 4 years; 3 percent of its time deposits up to $5 million, outstanding on or issued after October 16, 1975, that have an initial maturity of less than 180 days, plus 6 per cent of such deposits in excess of $5 million. Provided, however, that in no event shall the Provided, however, that in no event shall the reserves required on its aggregate amount of time and savings deposits be less than 3 percent. reserves required on its aggregate amount of time and savings deposits be less than 3 percent. (iii) (a) IV 2 percent of its net demand deposits if its aggregate net demand deposits are $2 million or less, (b ) $150,000 plus 10 percent of its net demand deposits in excess of $2 million if its aggregate net demand deposits are in excess of $2 million but less than $10 million, (c) $950,000 plus 12 percent of its net demand deposits in excess of $10 million if its aggregate net demand (iii) $50,750,000 plus 1616 percent of its net demand deposits in excess of $400 million. (b) Currency and coin. The amount of a mem ber bank’s currency and coin shall be counted as reserves in determining compliance with the re serve requirements of paragraph (a) of this section. (c) R e s e r v e p e r c e n t a g e s a g a in s t c e r t a in deposits by foreign banking offices. Deposits repre sented by promissory notes, acknowledgments of advance, due bills, or similar obligations described in § 204.1(f) to foreign offices of other banks,T or to institutions the time deposits of which are exempt from the rate limitations of Regulation Q pursuant to § 217.3(g) thereof, shall not be subject to paragraph (a) of this section or to § 204.3(a)(1) and (2); but during each week of the four-week period beginning May 22, 1975, and during each successive four-week (“maintenance”) period, a member bank shall maintain with the Reserve Bank of its district a daily average bal ance equal to 4 percent of the daily average amount of such deposits during the four-week computation period ending on the Wednesday 15 days before the beginning of the maintenance period. An excess or deficiency in reserves in any week of a maintenance period under this para graph shall be subject to § 204.3(a)(3), as if com puted under § 204.3(a)(2), and deficiencies under this paragraph shall be subject to § 20 4 .3 (b).8 7 A n y b a n k in g office located outside th e States o f th e U nited States a n d the D istrict o f C o lu m b ia o f a bank org a n iz ed u n d e r dom estic o r foreign law. 8 T h e te rm “c o m p u ta tio n p e rio d ” in § 2 0 4 .3 ( a ) ( 3 ) a n d (b ) shall, fo r this purpose, be deem ed t o re fer to each w eek o f a m ain ten a n c e p e rio d u n d e r this p arag rap h .
