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FEDERAL RESERVE BANK OF NEW YORK [ Circular No. 9590 ~| December 6, 1983 J RESERVE REQUIREMENTS Amendment to Regulation D, Effective January 12, 1984 To All Depository Institutions, and Others Concerned, in the Second Federal Reserve District: Following is the text of a statement issued by the Board of Governors of the Federal Reserve System: The Federal Reserve Board has announced an increase in the amount of net transaction accounts to which the lowest — 3 percent — reserve requirement will apply in 1984 from $26.3 million to $28.9 million. The Board also increased the amount of reservable liabilities in depository institutions that are subject to a zero percentage reserve requirement from $2.1 million to $2.2 million. The Board made the changes in accordance with provisions of the Monetary Control Act of 1980 and the Gam-St Germain Depository Institutions Act of 1982. The Monetary Control Act requires the Board to amend its Regulation D (Reserve Requirements of Deposi tory Institutions) annually to increase the amount of transaction accounts subject to a 3 percent reserve require ment in the next calendar year to 80 percent of the annual percentage increase in transaction accounts held by all depository institutions. The growth in total net transaction accounts of all depository institutions from June 30, 1982 to June 30, 1983 was 12.5 percent. The statutory rule thus requires an increase of 10 percent or to $28.9 million. The Gam-St Germain Act requires the Board to amend Regulation D to adjust the amount exempt from reserve requirements for the upcoming year by 80 percent of the annual percentage increase in total reservable liabilities. Growth in total reservable liabilities was 5.1 percent from June 30, 1982 to June 30,1983, requiring an increase in the reserve requirement exemption to $2.2 million. The adjustments take effect for all depository institutions with the reserve maintenance period beginning January 12, 1984. In its official notice of the change, the Board also stated, with respect to the effective date: Reserve requirements will be reduced for the reserve maintenance week that begins on January 12, 1984, for all depository institutions. These amendments will be effective for the reserve computation period that begins on December 29, 1983, for a weekly reporter, and December 15, 1983, for a depository institution that reports deposits and maintains reserves on a quarterly basis. In addition, all entities currently submitting Form FR 2900 will continue to submit reports to the Federal Reserve under current reporting procedures. (O V E R ) Enclosed is a copy of an amendment to Regulation D, reflecting the B oard’s action. The full text of the Board’s official notice will be published in the Federal Register, copies will be furnished upon request directed to our Circulars Division (Tel. No. 212-791-5216). Questions regarding Regulation D may be directed to the following: Reporting Requirements: Richard J. Gelson, Vice President (Tel. No. 212-791-8225) Nancy Bercovici, Manager, Statistics Department (Tel. No. 212-791-8227) Paula B. Schwartzberg, Chief, Deposit Reports Division (Tel. No. 212-791-8590) Maintenance Requirements: Kathleen A. O ’Neil, Manager, Accounting Department (Tel. No. 212-791-5250) Patricia Hilt-Lupack, Chief, Accounting Control Division (Tel. No. 212-791-7791) Interpretation of Regulation D: Joyce E. Motylewski, Assistant Counsel, Legal Department (Tel. No. 212-791-5024) Ann Calabrese, Chief, Regulations Division (Tel. No. 212-791-5914) A nthony M . S olom on, President. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM AMENDMENT TO REGULATION D Reserve Requirement Ratios Eff e c t i v e Ja n u a r y 12, 1984, p u r s u a n t to the Board's a u t h o r i t y under section 19 of the Federal Reserve Act, 12 U.S.C. § 461 et_ s e q ., 12 C FR Part 204 is amended by revising p a r a g r a p h (a) of section 204.9 to read as follows: S E C TION 204.9 — RESERVE R E Q U I R E M E N T RATIOS (a)(1) Reserve p e r c e n t a g e s . The following reserve ratios are p r e s c r i b e d for all dep o s i t o r y institutions, Edge and A g r e e m e n t Corporations, and United States br a n c h e s and agencies of foreign banks: Reserve requirement C a t egory Net t r a n s action accounts $0 - $28.9 m i l lion 3% of amount over $28.9 m i l lion $867,000 plus 12% of amou n t over $28.9 million Nonpersonal time deposits By original ma t u r i t y (or notice period): Less than 1-1/2 years 1-1/2 years or more 3% 0% E u r o c u r r e n c y liabilities 3% (2) E x e m ption from reserve r e q u i r e m e n t s . Each d e p o s i t o r y institution, Edge or A g r e ement corporation, and U.S. b r a n c h or a g ency of a foreign bank is subject to a zero percent reserve r equirement on an amount of its t r a n s a c t i o n accounts subject to the low reserve tranche in p a r a g r a p h (a)(1), n o n p e r s o n a l time deposits, or E u r o c u r r e n c y l iabilities or any c o m b i n a t i o n thereof not in excess of $2.2 m i l l i o n d e t e r m i n e d in a c c o r d a n c e with section 204.3(a)(3) of this Part. * [Enc. Cir. No. 9590] * * * *
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