Full text of Federal Reserve Bank of New York Circulars : 4905. Change in Classification of Member Banks for Purpose of Electing Directors

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FE D E R A L R E SE R V E BANK
O F N EW Y O R K

r C ir c u la r N o . 4 0 0 5 T
I
Ju n e 28, 1960

J

CHANGE IN CLA SSIFIC ATIO N OF M E M BE R B AN K S
FO R PU RPOSE OF E LE C TIN G D IR E C TO R S

To All Member Banks of the
Second Federal Reserve District:

The Board of Governors of the Federal Reserve System has changed
the classification of member banks in the Second Federal Reserve District
for the purpose of electing class A and class B directors of the Federal
Reserve Bank of New York. Under the Board’s previous classification,
Group 1 consisted of banks with capital and surplus of $20,000,000 and m ore;
Group 2, of banks with capital and surplus of $800,000 and more, but less
than $20,000,000; and Group 3, of banks with capital and surplus of less than
$800,000.
The new classification is as follows:
Group 1 consists o f banks with capital and surplus o f $25,000,000 or m o re ;
Group 2, o f banks with capital and surplus o f more than $1,000,000 but less
than $25,000,000; and
Group 3, o f banks with capital and surplus o f $1,000,000 or less.

The change in classification is intended to achieve a better distribution
of member banks in the three groups, each of which “ shall consist as nearly
as may be of banks of similar capitalization” as specified in section 4 of the
Federal Reserve Act. The groupings were out of alignment as the result of
recent increases in capitalization of member banks and a reduction in the
number of member banks through mergers and absorptions.
The new classification will be used in the fall of this year, when Group
3 banks will be voting for a class A and a class B director for three-year
terms beginning January 1, 1961.




P

h il ip

D. R

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Chairman of the Board.