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FEDERAL RESERVE BANK
OF NEW YORK
r C i r c u l a r No. 2 4 8 5 5 1
L A u g u s t 18, 1942 J

SUPPLEMENT TO REGULATION D
Reserves Required To Be Maintained By Member Banks
With Federal Reserve Banks
Reduction Effective August 20, 1942

To all Member Banks in the
Second Federal Reserve
District:

Enclosed is a printed copy of a supplement to Regulation D, " Reserves of
Member Banks", adopted by the Board of Governors of the Federal Reserve System
to supersede the existing supplement to Regulation D and to become effective at
the opening of business on August 20, 1942.
The Board's statement released for publication on August 19, 1942, with respect
to the action taken by the Board, is as follows:
BOARD O F GOVERNORS
OF THE
F E D E R A L R E S E R V E SYSTEM
S T A T E M E N T FOR T H E PRESS
For release in morning newspapers of
August 19, 1942.

August 18, 1942.

The Board of Governors today announced a reduction in reserve requirements to
24 per cent, from the existing rate of 26 per cent, of net demand deposits for central
reserve city member banks in New York and Chicago. The reduction will become effective as of the opening of business on August 20, 1942. This action is in accordance with
the Act of July 7, 1942, which gave to the Board the power to change reserve requirements
of member banks in central reserve cities without changing requirements for member
banks in other cities.

Additional copies of this circular and of the enclosed supplement will be furnished upon request.




ALLAN SPROUL,

President.

BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM

SUPPLEMENT TO REGULATION D
Effective as to each member bank at the opening of
business on August 20, 1942

RESERVES REQUIRED TO BE
MAINTAINED BY MEMBER BANKS
WITH FEDERAL RESERVE BANKS
Pursuant to the provisions of section 19 of the Federal Reserve Act
and section 2(a) of its Regulation D, the Board of 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 of its
district:
6 per cent of its time deposits plus—
14 per cent of its net demand deposits if not in a reserve or
central reserve city;
20 per cent of its net demand deposits if 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 extension of the city's corporate
limits, which, by the affirmative vote of five members of the Board
of Governors of the Federal Reserve System, is permitted to maintain 14 per cent reserves against its net demand deposits;
24 per cent of its net demand deposits if located in a central reserve
city, except as to any bank located in an outlying district of 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 of five
members of the Board of Governors of the Federal Reserve System,
is permitted to maintain 14 per cent or 20 per cent reserves against
its net demand deposits.
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