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FEDERAL RESERVE BANK OF MEW ¥©RBC August 25, 1987 RESERVE REQUIREMENTS Expiration of Transitional Adjustment Period for Nonmember Institutions To All Nonmember Banks, Thrift Institutions, and Credit Unions in the Second Federal Reserve District: On Wednesday, September 9, 1987, the final transitional period for adjust ment by nonmember institutions to full required reserves, as provided in Section 2 0 4 .4 (a ) of Federal Reserve Regulation D, will expire. This transitional adjustment period applied to depository institutions that were engaged in business prior to July 1, 1979 and that were not then and have not since become members of the Federal Reserve System. Such institutions were required to satisfy a reserve requirement for the first time under the terms of the Monetary Control Act of 1980, but were permitted to “phase-in” this new requirement according to a seven-year transitional adjustment schedule. Beginning September 10, 1987, nonmember depository institutions will be required to maintain the full amount of their required reserves. As a result, most institutions in this class will experience an increase in their reserve requirements. Some institutions that have in the past satisfied their entire requirement with vault cash may be required to maintain reserve balances at this Bank or with a pass through correspondent. Institutions that will need to establish an account relation ship to satisfy reserve requirements, or that require information on reserve require ments, should contact, at the Head Office, Donald R. Anderson, Manager, Accounting Department (Tel. No. 212-720-5250) or Anthony Fressola, Chief, Accounting Control Division (Tel. No. 212-720-5803) or, at the Buffalo Branch, Gary S. Weintraub, Cashier (Tel. No. 716-849-5020) or Philip G. Coletti, Chief, Central Operations Division (Tel. No. 716-849-5064). R a l p h A . C a n n , III, Vice President.
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