Full text of Federal Reserve Bank of New York Circulars : 8430. Change in Classification of Member Banks for Purpose of Electing Directors

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FEDERAL RESERVE BANK
OF NEW YORK

Circular No. 8430
October 5, 1978

CHANGE IN CLASSIFICATION OF MEMBER BANKS
FOR PURPOSE OF ELECTING DIRECTORS
To

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Second F fd o r a / Reserve Ch'.s7r?'cf.'

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 more than $65,000,000; Group 2, of banks with capital and surplus of
$3,000,000 to $65,000,000, inclusive; and Group 3, of banks with capital and surplus of less than
$3,000,000.
The new classification is as follows:
Group 1 consists of banks with capital and surplus of more than $185,000,000;
Group 2, of banks with capital and surplus of $5,000,000 to $185,000,000, inclusive; and
Group 3, of banks with capital and surplus of less than $5,000,000.

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
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 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, 1979.
ROBERT H . KNIGHT,
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B oard.