Full text of Federal Reserve Bank of New York Circulars : 2514. Supplement To Regulation D, Reserves Required To Be Maintained BY Member Banks With Federal Reserve Banks

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FEDERAL RESERVE BANK
OF NEW YORK

rCircular No. 2 5 1 4 T
L October 3, 1942 J

SUPPLEMENT TO REGULATION D
Reserves Required To Be Maintained By Member Banks
With Federal Reserve Banks
Reduction Effective October 3, 1942

To all Member Banlcs in the
Second Federal Reserve District:

Enclosed is a printed copy of a supplement to Regulation D, ' 4 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
1
the opening of business on October 3, 1942.
The Board's statement released for publication on October 3, 1942, with respect
to the action taken by the Board, is as follows:
The Board of Governors today announced a reduction in reserve requirements to 20 per
cent, from the existing rate of 22 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 October 3, 1942.

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




ALLAN SPROUL,

President.

SUPPLEMENT TO REGULATION D
ISSUED BY T H E BOARD OF GOVERNORS OF T H E FEDERAL RESERVE

SYSTEM

Effective as t o each m e m b e r b a n k a t t h e o p e n i n g of
b u s i n e s s o n October 3, 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;
20 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.