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FEDERAL RESERVE BANK
OF N EW YORK
r Circular No. 5630 "
1
L

March 11, 1965

J

Amendment of Guideline No. 1 for Foreign Lending
Activities of Commercial Banks

To All Banks in the Second Federal Reserve District:

Our Circular No. 5628, dated March 5, 1965, sets forth the guidelines issued by
the Board of Governors of the Federal Reserve System for commercial banks to fol­
low in complying with the President’s program to improve the nation’s balance-ofpayments position. The Board of Governors has now informed us that paragraph (2)
of Guideline No. 1 has been amended to read as follows (words in italics having been
a d d ed ):
(2)
Subtract from this amount any claims for account of customers included on the
forms, as well as any participations in individual loans arranged or insured by the ExportImport Bank or made with Export-Import Bank guarantees.

The addition of the words or insured makes the calculation of the 1964 year-end tar­
get base consistent with Guideline No.

2,

which excludes ‘ ‘ loans with Export-Im port

Bank guarantees or insurance” from the 5 per cent target.
The Board of Governors has also informed us that, for the purposes of Guide­
lines Nos. 1 and 2, loans with Foreign Credit Insurance Association guarantees or
insurance are to be treated as loans with Elxport-Import Bank guarantees or insur­
ance and therefore are excluded from the program.
Additional copies of this circular will be furnished upon request.




A

lfred

H

ayes,

President.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102