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FED ERAL RESER VE BANK O F NEW YORK r L C ircu la r N o . 4 5 7 0 1 F e b ru a ry 19, 1958 RESERVE REQUIREMENTS New Supplement to Regulation D To all M em ber Banks in the Second Federal R eserve D istrict: The Board of Governors has reduced by V2 of one per cent the reserves required to be maintained by member banks of the Federal Reserve System against demand deposits. Following is a quotation from the Board’s statement on the reduction, released for publication today: This action will release about $500 million from present required reserves. For central reserve city banks, the reduction from 20 per cent to 19i/2 per cent of net demand deposits will release about $125 million of reserves. A t reserve city banks, the reduction from 18 per cent to ITY2 per cent will release about $195 million, and at country banks the change from 12 per cent to IIV 2 per cent will release approximately $180 million. For central reserve city and reserve city banks, the effective date for the new requirements is February 27, 1958, and for country banks, March 1, 1958. The new requirements are set forth in the enclosed Supplement to Regulation D. Additional copies of this circular and of the enclosed supplement will be furnished upon request. A lfred H ayes, President. J SUPPLEMENT TO REGULATION D IS S U E D B Y T H E B OARD O P G O V E R N O R S O F T H E F E D E R A L R E S E R V E S Y S T E M Effective as to m em ber banks not in reserve and central reserve cities at opening o f business on March 1, 1958, and as to m em ber banks in reserve and central reserve cities at opening o f business on February 27, 1958. RESERVES REQUIRED TO BE MAINTAINED BY MEMBER BANKS W ITH FEDERAL RESERVE BANKS Pursuant to the provisions o f section 19 of the Federal Reserve Act and section 2 (a ) o f its Regulation D, the Board of Governors of the Federal Reserve System hereby prescribes the following reserve bal ances which each member bank o f the Federal Reserve System is required to maintain on deposit with the Federal Reserve Bank of its district: 1. If not in a reserve or central reserve city— (a) 5 per cent o f its time deposits, plus (b) 11% per cent of its net demand deposits. 2. If in a reserve city (except as to any bank located in an out lying district o f a reserve city or in territory added to such city by the extension o f the city ’s corporate limits, which, by the affirmative vote of five members o f the Board of Governors of the Federal Reserve System, is permitted to maintain the reserves specified in paragraph 1 above)— (a) 5 per cent of its time deposits, plus (b) 171/2 per cent o f its net demand deposits. 3. If 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 o f the Board of Governors of the Federal Reserve System, is permitted to maintain the reserves specified in paragraph 1 or 2 above)— (a) 5 per cent of its time deposits, plus (b) 1914 per cent o f its net demand deposits. P R IN T E D IN N E W YO RK
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