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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 .