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federal Reserve bank of DALLAS. TEX AS Dallas 75222 C i r c u l a r No. 76-3 J a n u a r y 12, 1976 American Revolution Bicentennial SUPPLEMENT TO REGULATION D TO ALL MEMBER BANKS IN THE ELEVENTH FEDERAL RESERVE DISTRICT: R e f e r e n c e is m a d e to C i r c u l a r No. 7 5 -194, d a t e d D e c e m b e r 29, 1975, r e g a r d i n g t h e a n n o u n c e m e n t b y t h e B o a rd of G o v e r n o r s of t h e F e d e r a l R e s e r v e S y s t e m of a c h a n g e in R e g u l a ti o n D r e d u c i n g t h e r e s e r v e r e q u i r e m e n t s on m e m b e r b a n k time d e p o s i t s w ith a n o r i g i n a l m a t u r i t y of 180 d a y s to 4 y e a r s . T h e r e s e r v e r e q u i r e m e n t s on tim e d e p o s i t s w ith a n o r ig i n a l m a t u r i t y of 180 d a y s to 4 y e a r s w e r e r e d u c e d from 3 p e r c e n t to 2 \ p e r c e n t . T h e new r e s e r v e r a t io a p p l i e s to t h e level of d e p o s i t s b e g i n n i n g w ith the w e e k of D e c e m b e r 2 5 -31 , 1975, a n d will affect r e q u i r e d r e s e r v e s b e g i n n i n g w ith th e s ta t e m e n t w e e k of J a n u a r y 8 - 1 4 , 1976. T h e new S u p p l e m e n t to R e g u l a ti o n D r e f l e c t i n g th e r e d u c t i o n in r e s e r v e r e q u i r e m e n t s is e n c l o s e d . T h i s n ew S u p p l e m e n t , ef f e c tiv e D ecem b e r 25, 1975, s h o u l d b e filed w i t h y o u r c o p y of R e g u l a ti o n D in y o u r R e g u la tio n s B i n d e r , a n d th e c o r r e s p o n d i n g S u p p l e m e n t , d a t e d O c to b e r 16, 1975, s h o u l d b e r e m o v e d a n d d e s t r o y e d . If y o u h a v e a n y q u e s t i o n s r e g a r d i n g R e g u l a ti o n D, p l e a s e c o n t a c t A lla n Y . Neale at (214) 651-6334 o r C . L. Vick a t (214) 651-6333, o r t h e A c c o u n t i n g D e p a r t m e n t a t o u r El P a s o , H o u sto n , o r S a n A n to n io B r a n c h . A d d iti o n a l c o p i e s of t h e S u p p l e m e n t to R e g u l a ti o n D will b e f u r n i s h e d u p o n r e q u e s t to t h e S e c r e t a r y ' s Office of t h i s B a n k . S incerely y o u rs , T . W. P la n t F i r s t V ice P r e s i d e n t Enclosure 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 A s am ended effective D ecem b er 25 , 197S SECTION 204.5— R ESE RV E R EQUIREM ENTS (a) R e s e r v e p e r c e n ta g e s . P u r s u a n t to th e provisions o f section 19 of the Federal Reserve A ct and § 204.2(a) and subject to paragraph (c) of this section, the Board o f Governors o f the F ed 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 o f its district. (1) If not in a reserve city— deposits are in excess o f $10 million but less than $ 10 0 million, or ( d ) $ 1 1 ,7 5 0 ,0 0 0 plus 13 percent o f its net demand deposits in excess o f $ 1 0 0 mil lion. ( 2 ) If in a reserve city (excep t as to any bank located in such a city that is permitted by the Board o f Governors o f 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 o f (a ) its savings deposits and ( b ) its time deposits, open account, that constitute deposits o f individuals, such as Christmas club accounts and vacation club accounts, that are made under written contracts providing that no withdrawal shall be m ade until a certain number o f periodic deposits have been made during a period o f not less than 3 months; and (i) 3 percent o f (a ) its savings deposits and ( b ) its time deposits, open account, that constitute deposits o f 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 o f periodic deposits have been m ade during a period o f not less than 3 months; and (ii) 1 percent o f its time deposits outstanding on or issued after October 16, 1975, that have an initial maturity o f 4 years or more; IV i percent of its time deposits outstanding o n or issued after D ecem b er 25, 1975, that have an initial maturity o f 18 0 days or more but less than 4 years; 3 percent o f its time deposits up to $5 million, outstanding on or issued after October 16, 1975, that have an initial maturity o f less than 180 days, plus 6 per cent o f such deposits in excess o f $5 million. (ii) 1 percent o f its time deposits outstanding on or issued after October 16, 1975, that have an initial maturity o f 4 years or more; 2Vi percent of its time deposits outstanding o n or issued after D ecem ber 25, 1975, that have an initial maturity o f 180 days or more but less than 4 years; 3 percent o f its time deposits up to $5 million, outstanding on or issued after October 16, 1975, that have an initial maturity o f less than 180 days, plus 6 per cent o f such deposits in excess o f $5 million. Provided, however, that in no event shall the reserves required on its aggregate amount o f time and savings deposits be less than 3 percent. Provided, however, that in no event shall the reserves required on its aggregate amount o f time and savings deposits be less than 3 percent. (iii) (a ) IV i percent o f its net demand deposits if its aggregate net demand deposits are $ 2 million or less, ( b ) $ 1 5 0 ,0 0 0 plus 10 percent o f its net demand deposits in excess o f $2 million if its aggregate net demand deposits are in excess of $ 2 million but less than $ 1 0 million, ( c ) $ 9 5 0 ,0 0 0 plus 12 percent o f its net demand deposits in excess of $ 1 0 million if its aggregate net demand (iii) $ 5 0 ,7 5 0 ,0 0 0 plus 1 6 Vi percent o f its net demand deposits in excess o f $4 0 0 million. (b ) Currency and coin. T he amount o f a m em ber bank’s currency and coin shall be counted as reserves in determining compliance with the re serve requirements o f paragraph (a ) o f this section. (c) R e s e r v e p e r c e n ta g e s a g a in s t ce r ta in deposits by foreign banking offices. Deposits repre sented by promissory notes, acknowledgments o f advance, due bills, or similar obligations described in § 2 0 4 . 1 ( f ) to foreign offices o f other banks,7 or to institutions the time deposits o f which are exempt from the rate limitations o f Regulation Q pursuant to § 2 1 7 .3 ( g ) thereof, shall not be subject to paragraph ( a ) o f this section or to § 204.3(a)(1) and (2); but during each w eek o f the four-week period beginning M ay 22, 1975, and during each successive four-week ( “ maintenance” ) period, a member bank shall maintain with the Reserve Bank o f its district a daily average bal ance equal to 4 percent o f the daily average amount o f such deposits during the four-week computation period ending on the Wednesday 15 days before the beginning o f the maintenance period. A n excess or deficiency in reserves in any week o f a maintenance period under this para graph shall be subject to § 204.3(a)(3), as if c o m puted under § 204.3(a)(2), and deficiencies under this paragraph shall be subject to § 2 0 4 . 3 ( b ) . 8 7 Any banking office located outside the States of the United States and the District of Columbia of a bank organized under domestic or foreign law. 8 The term “computation period” in § 2 0 4 .3 (a )(3 ) and (b) shall, for this purpose, be deemed to refer to each week of a maintenance period under this paragraph.
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