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FE D E RA L R E SE R V E BANK OF NEW YORK r L C ircu la r N o . 4 5 9 A p r il 17, 1958 RESERVE REQUIREMENTS New Supplement to Regulation D To all Member Banks in the Second Federal Reserve District: The Board o f Governors has reduced the reserves required to be maintained by central reserve city banks against demand deposits by V2 o f one per cent, effective today, A pril 17, and by an additional one per cent effective A pril 24. of The Board has also reduced the reserves required to be maintained by reserve city banks against demand deposits by 3/*> of one per cent, effective A pril 24. Following is a quotation from the B oard ’s statement on the reduction, released fo r publication tod ay: This action will release about $450 million from present required reserves. The reduction for central reserve cities from 19 per cent to 18Vfc per cent, effective today, will release about $130 million of reserves, and the reduction from 1 8 ^ per cent to 18 per cent, effective April 24, will release about the same amount. A t reserve city banks the reduction from 17 per cent to 16V£ per cent, effective A pril 24, will release about $190 million. 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. 4 T J SUPPLEMENT TO REGULATION D IS S U E D B Y T H E B OARD O F G O V E R N O R S OF T H E F E D E R A L R E SE R V E S Y S T E M Effective as to each m em ber bank at the opening o f business on A pril 17, 1958, except as otherwise indicated. RESERVES REQUIRED TO BE MAINTAINED B Y 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. I f not in a reserve or central reserve city— (a) 5 per cent o f its time deposits, plus (b) 11 per cent o f its net demand deposits. 2. I f 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 o f five members o f the Board o f 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 ) 17 per cent of its net demand deposits until the opening of business on A pril 24, 1958, and I 6 V2 per cent of its net demand deposits thereafter. 3. I f 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 o f its time deposits, plus (b) 18i/2 per cent o f its net demand deposits until the open ing of business on A pril 24, 1958, and 18 per cent of its net demand deposits thereafter. PR IN TE D IN N E W YORK
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