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\ FEDERAL RESERVE BANK OF NEW YORK Circular No. 9160 October 9, 1981 DISCOUNT RATE SURCHARGE To All Depository Institutions in the Second Federal Reserve District: Effective Tuesday, October 13, 1981, the directors of this Bank, with the approval of the Board of Governors of the Federal Reserve System, have reduced the surcharge applicable to larger banks that have a record of frequent use of the discount window from 3 to 2 percent. The following is quoted from the text of a statem ent issued today by the Board of Governors: The Federal Reserve Board today approved a 1 percentage point reduction—from 3 percent to 2 percent—in the discount rate surcharge that applies to large, frequent borrowers at the discount window. No change was made in the basic discount rate of 14 percent. The adjustment is a further technical response to the decline over recent weeks in short term money market rates. The Board emphasized the action was taken within the context of the continuing policy to restrain growth in money and credit. In announcing the change, the Board acted on requests from the directors of the 12 Federal Reserve Banks. A copy of this Bank’s Operating Circular No. 13, regarding discount rates, will be sent to you shortly. Anthony M. S o l o m o n . President. FEDERAL RESERVE BANK OF NEW YORK [ Operating Circular No. 13 Revised effective October 13, 1981 ] DISCOUNT RATES To All Depository Institutions in the Second Federal Reserve District: 1. This Bank has m ade the following changes in its ra te schedule, effective October 13, 1981: The su rch arg e on advances to, and discounts for, depository institutions w ith total deposits of $500 million or more, under term s and conditions established by the Board of Governors of the F ederal Reserve System relatin g to frequency of borrow ings of adju stm en t credit, has been reduced from 3 percent to 2 percent. Shown on the reverse side is the schedule of rates now in effect at this Bank on advances and discounts m ade u n d er the Federal Reserve Act. 2. This c ircu lar supersedes our O perating C ircular No. 13, Revised effective Septem ber 22, 1981. A n t h o n y M. S o lo m o n , President. [Ref. Cir. No. 9160] (OVER) R ate S c h e d u le E ffe c tiv e O cto b er 13, 1981 Percent Per Annum A d v a n c e s to a n d d isco u n ts fo r d ep o sito ry institu tion s: (a) A dvances of adjustm ent and seasonal cred it and discounts u n d er sections 13, 13a, and 10(b) of the F ederal Reserve A ct ............................................. 14* (b) A dvances u nder section 10(b) of the F ederal Reserve Act of extended cred it (i) to institutions under sustained liquidity pressures, or (ii) for special circum stances, w here such F ed eral Reserve cred it has been o utstanding (including extensions and renew als) for: Not m ore than 60 days ......................................... More th an 60, but not m ore th an 150, days .......................................................................... 14 15 More than 150 days ................................................ 16 * Advances to, and discounts for, a depository institution having total deposits of $500 million or more will be subject to a surcharge of 2 percent in either of the following circumstances: (1) Any advance or discount which represents borrowing of adjustment credit by the depository institution in two or more consecutive reserve accounting weeks; or (2) Any advance or discount which represents borrowing of adjustment credit by the depository institution in more than four reserve accounting weeks within a period of 13 reserve accounting weeks consisting of the week in which the advance or discount is made and the 12 preceding weeks.
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