Full text of Federal Reserve Bulletin : May 1987
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VOLUME 7 3 •
NUMBER 5 •
M A Y 1987
FEDERAL RESERVE
BULLETIN
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • Michael Bradfield • S. David Frost
• Griffith L. Garwood • James L. Kichline • Edwin M. Truman
The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by Mendelle T.
Berenson, the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.
Table of Contents
321 U.S. INTERNATIONAL
IN 1986
Affairs, March 24, 1987. [Vice Chairman
Johnson presented identical testimony before the Subcommittee on International Finance and Monetary Policy of the Senate
Committee on Banking, Housing, and Urban Affairs, March 25, 1987.]
TRANSACTIONS
The external deficit of the United States
widened to a record level in 1986, despite
the further decline in the foreign exchange
value of the dollar.
330 TREASURY AND FEDERAL
RESERVE
FOREIGN EXCHANGE
OPERATIONS
347
Redeposit service approved for Federal Reserve Banks.
After trading fairly steadily throughout November and the first half of December, the
dollar moved sharply lower until the end of
January.
336 INDUSTRIAL
Reductions approved in the fee structure
for book-entry securities.
Money stock data revised to include
changes in benchmarks and seasonal factors.
PRODUCTION
Industrial production increased an estimated 0.5 percent in February.
338 STATEMENTS
TO
341 Manuel H. Johnson, Jr., Vice Chairman,
Board of Governors of the Federal Reserve
System, provides an overview of bankaffiliated export trading companies and says
that the Board opposes any proposals that
would increase the risk to the bank from the
affiliated export trading company, before
the Subcommittee on Financial Institutions,
Supervision, and Regulation of the House
Committee on Banking, Finance and Urban
Changes in official staff commentaries on
Regulations B, E, and Z.
Proposal to incorporate credit risks on offbalance-sheet interest rate and exchange
rate contracts into a proposed risk-based
capital measure.
CONGRESS
Martha R. Seger, Member, Board of Governors, discusses legislation that has been
introduced to require disclosures of prices
and terms in credit card applications and to
establish a nationwide ceiling on credit card
interest rates, in a statement submitted to
the Subcommittee on Consumer Affairs and
Coinage of the House Committee on Banking, Finance and Urban Affairs, March 18,
1987.
ANNOUNCEMENTS
Admission of five state banks to membership in the Federal Reserve System.
351 LEGAL
DEVELOPMENTS
Various bank holding company, bank service corporation, and bank merger orders;
and pending cases.
393 DIRECTORS OF THE FEDERAL
BANKS AND
BRANCHES
RESERVE
List of directors by Federal Reserve District.
AI
FINANCIAL
AND BUSINESS
STATISTICS
A3 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A53 International Statistics
A 6 9 GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND
SPECIAL
TABLES
A 8 0 BOARD
OF GOVERNORS
AND
A 8 7 INDEX
TO STATISTICAL
A 8 9 FEDERAL RESERVE
AND OFFICES
A 9 0 MAP OF FEDERAL
BOARD
BANKS,
BRANCHES,
STAFF
A 8 2 FEDERAL OPEN MARKET
COMMITTEE
AND STAFF; ADVISORY
COUNCILS
A 8 4 FEDERAL RESERVE
PUBLICATIONS
TABLES
RESERVE
SYSTEM
U.S. International Transactions in 1986
Charles P. Thomas, of the Board's Division
International Finance, prepared this article.
of
The external deficit of the United States widened
to a record level in 1986, despite the further
decline in the foreign exchange value of the
dollar. For the year as a whole, the merchandise
trade deficit reached $148 billion, while the current account deficit, which includes net receipts
of investment income and other services in addition to merchandise trade, reached $141 billion
(chart 1). The depreciation of the dollar began to
have noticeable effects in U.S. export markets,
helping the volume of U.S. exports to grow
strongly during 1986 in the face of some slowing
in the growth of gross national product abroad;
but it appears to have restrained the growth of
imports only slightly. The slow response of the
trade balance to the depreciation is attributable
in part to normal lags in the adjustment of trade
volume and prices. It also reflects an unusually
laggard response of import prices to the depreciation, the uneven rate of depreciation against the
currencies of several key regions, and the continued expansion of U.S. consumption in spite of
slower income growth.
The current account deficit in 1986 was financed largely by private purchases of U.S.
1. U.S. trade and current accounts
Billions of dollars
Source. U.S. Department of Commerce, Bureau of Economic
Analysis.
securities, continuing the trend that began in
1984. However, official inflows increased markedly, after having been negligible in 1985, as
foreign official agencies bought U.S. dollar assets in response to upward pressure on their
currencies against the dollar.
The lower value of the dollar and the possibility of more balanced fiscal and monetary policies
worldwide lend credence to a slightly improved
outlook for the U . S . trade deficit. However, the
continuation of large current account deficits
implies further erosion of the U.S. net foreign
asset position and points to deterioration in the
service account in the future.
MAJOR INFLUENCES
U.S. INTERNATIONAL
ON
TRANSACTIONS
U.S. international transactions were dominated
in 1986 by the continued decline of the dollar and
the persistent effects of its prolonged appreciation between 1980 and 1985. Changes in economic activity at home and abroad affected the U.S.
external balances in 1986 relatively little, as
growth rates in the United States and the rest of
the world converged (chart 2). Domestic demand
grew somewhat more at home than abroad on
average in 1986 and contributed to the sustained
strength in imports.
Changes in U.S. international price competitiveness, measured by the ratio of foreign prices
in dollar terms to U.S. prices, explain much of
the movement in the U.S. trade position in
recent years, as illustrated in chart 3. When
foreign prices rise faster than U.S. prices or
when the dollar depreciates, U.S. price competitiveness improves. Movements in real net exports have tended to track shifts in price competitiveness with a lag of one to two years. The
depreciation of the dollar that began in 1971 was
followed by a sharp increase in net exports in the
years 1973 through 1975. Similarly, the deprecia-
322
Federal Reserve Bulletin • May 1987
2. Growth of real GNP
Percentage change from year earlier
1. The GNP of foreign industrial countries is the weighted average
GNP for the Group of Ten countries besides the United States and
Switzerland. Weights are proportional to each country's share in
world exports plus imports during 1972-76.
tion during 1977-78 fostered another sharp increase in net exports beginning in 1978. In both
cases rapid increases in exports accounted for
most of the gain in net exports. In 1986, the
dollar depreciated 10 percent in nominal terms
against the currencies of 18 major trading countries, while U.S. consumer price inflation was 6
percentage points lower than the average price
inflation in the same 18 countries. These changes
in exchange rates and prices improved U.S. price
competitiveness during the year, returning the
index of relative consumer prices to about its
1981 level. Movements in U.S. price competitiveness based on relative wholesale prices tell
about the same story, qualitatively.
The improvement in U.S. price competitiveness over the past two years has not been
uniform across countries. Between 1980 and the
3. U.S. price competitiveness and net exports
Billions of 1982 dollars
1 9 8 0 = 100
first quarter of 1985, the dollar adjusted for
changes in relative consumer prices appreciated
6 percent against the Canadian dollar and 25
percent against the currencies of eight major
U.S. trading partners among the developing
countries; against the currencies of the other
major industrial countries it appreciated roughly
65 percent (chart 4). (This price-adjusted, or real,
exchange rate is simply the inverse of the measure of price competitiveness depicted in chart
3.) Since early 1985, the price-adjusted dollar has
declined sharply against the currencies of the
industrial countries other than Canada, but it has
continued to rise against those of the developing
countries on average. At the end of 1986, the
value of the price-adjusted dollar was 5 percent
above its 1980 level relative to the currencies of
the industrial countries and 34 percent above the
1980 level relative to those of the developing
countries.
Much of the change in the dollar's value over
the past six years has reflected differences in
real, or inflation-adjusted, interest rates across
countries. Over most of the period of floating
exchange rates since early 1973, the price-adjusted value of the dollar against the currencies of
the other Group of Ten countries and the difference between U.S. long-term real interest rates
and an average of comparable rates for those
countries have moved roughly together (chart 5).
The two series diverged beginning in early 1984,
as the dollar continued to rise sharply despite a
decline in the relative real return on dollar assets.
Since early 1985, however, the relationship appears to have been reestablished. The sustained
4. Dollar exchange rate, price-adjusted1
1980 = 100
1970
1975
1980
1986
1. Volume of nonagricultural merchandise exports minus volume of
non-oil merchandise imports.
2. Ratio of consumer prices in 10 industrial countries and 8 developing countries (in dollars) to U.S. consumer prices. Weights are
multilateral trade shares for the years 1978-83.
1. Nominal exchange rates are adjusted using consumer prices. An
increase is a real appreciation of the dollar. Weights in indexes are
based on bilateral non-oil import trade shares for the years 1978-83.
U.S. International
Percentage points
Ratio scale, 1980 = 100
1976
1978
1980
1982
1984
1986
1. The nominal exchange rate for the other G-10 countries plus
Switzerland adjusted for movements in consumer prices. Weights are
based on 1972-76 multilateral trade.
2. Difference between yields on long-term government bonds of the
United States and the foreign G-10 countries minus 12-quarter centered moving averages of changes in the average of the countries'
consumer price indexes weighted by trade shares.
decline in U.S. long-term real interest rates relative to those of the other G-10 countries has
evidently been a significant factor behind the
dollar's plunge over the past two years.
Recent movements in real interest differentials
in turn can be explained in part by divergent
macroeconomic policies in the United States and
other industrial countries. Between 1980 and
1985, U.S. fiscal policy, as measured by changes
in the structural deficit, was quite expansionary,
while foreign fiscal policy, by the same measure,
was contractionary (chart 6). These fiscal policies, combined with monetary restraint in the
United States and abroad, helped to elevate U.S.
real interest rates relative to foreign real rates in
the early 1980s. In 1985 and 1986, lower inflation
expectations, prospects for a reduction in the
U.S. fiscal stimulus, and a somewhat more accommodating monetary policy brought marked
declines in U.S. nominal (and real) interest rates
that were not matched abroad (see chart 7).
Differentials in interest rates cannot fully explain recent swings in the dollar, as is evident in
chart 5. Other factors that have influenced the
demand for dollar assets, and therefore the dollar's exchange rate, include (1) the general liberalization of exchange controls, especially in Japan and the United Kingdom, (2) innovations in
capital markets that have reduced the costs and
risks associated with owning assets denominated
in foreign currency, and (3) shifts in the political
and economic climates in specific countries. For
in 1986
323
6. Fiscal stimulus in the United States,
Japan, and West Germany 1
5. Real dollar exchange rate and real long-term
interest rate differential
1974
Transactions
Percentage points
1. The fiscal stimulus is defined as the change from year to year in
the ratio of the structural budget deficit to GNP. Data for 1980-84 are
annual averages.
SOURCE: Organisation for Economic Co-operation and Development. Economic Outlook, vol. 36 (December 1984) and vol. 40
(December 1986).
the currencies of most developing countries still
other factors determine the exchange rate. To
varying degrees, these countries manage their
exchange rates either by fixing an official rate
and imposing controls on convertibility or by
intervening in foreign exchange markets. While
the dollar was rising against the currencies of the
industrial countries, the developing countries,
many of which faced severe external financing
problems, devalued their currencies or allowed
them to depreciate further against the dollar.
Since 1985, their currencies as a group have
continued to depreciate against the dollar.
MERCHANDISE
TRADE
The U.S. merchandise trade deficit grew to $148
billion in 1986, compared with a deficit of $124
billion in 1985. Imports rose $31 billion, and
7. Nominal long-term interest rates in the
United States and the foreign G-10
Percent
1978
1980
1982
1984
1986
1. A composite of interest rates on long-term and medium-term
government securities in the G-10 plus Switzerland.
324
Federal Reserve Bulletin • May 1987
1. U.S. merchandise trade 1
Billions of dollars
Item
1982
1983
1984
1985
1986
Merchandise exports
Agricultural
Nonagricultural
211.2
37.2
174.0
201.8
37.1
164.7
219.9
384.4
181.5
214.4
29.6
184.8
221.8
26.9
194.8
Merchandise imports
Oil
Non-oil
247.6
61.3
186.4
268.9
55.0
213.9
332.4
57.3
275.1
338.9
50.5
288.3
369.5
33.9
335.6
Trade balance
-36.4
-67.1
-112.5
-124.4
-147.7
1. Components may not add to totals because of rounding.
SOURCE. U.S. Department of Commerce, Bureau of Economic
Analysis, balance of payments accounts.
exports advanced $7 billion (table 1). The higher
value of exports in 1986 reflected a strong increase in the volume of nonagricultural exports,
which rose 14 percent from the fourth quarter of
1985 to the fourth quarter of 1986 after having
been flat throughout 1985. This recovery of exports came despite the slowing of economic
growth in the rest of the world, and contrasts
with the performance of exports in 1985. As table
2 shows, the volume of exports of industrial
supplies other than fuels rose 18 percent overall;
the gains were especially large in chemicals,
paper, lumber, and gold. Business machines contributed most to the increase in capital goods, but
gains in broadcasting and telephonic equipment,
scientific equipment, and machine tools were
also strong. Exports of consumer goods rose 15
percent during the year.
The improvement in the competitiveness of
U.S. goods that resulted from the dollar's depre2. Volume of nonagricultural exports1
Percent change
Type of export
Nonagricultural exports
Industrial supplies
Fuels
Other
Manufactured products
Capital goods
Aircraft parts
Business machinery . . .
Other
Automotive products . . . .
Consumer goods
All other
Share,
1986:4?
1984:41985:4
1985:41986:4"
100
28
5
23
.9
-1.2
22.2
-6.9
13.6
11.0
-11.0
17.8
72
42
7
16
20
9
7
14
1.9
1.4
28.1
10.1
-9.7
2.1
-5.4
8.0
14.7
14.2
9.9
26.4
5.7
-1.4
15.3
31.0
1. Components may not add to totals because of rounding,
p Preliminary.
SOURCE. U.S. Department of Commerce, Bureau of Economic
Analysis, balance of payments accounts.
ciation was responsible for the increase in the
volume of nonagricultural exports in 1986. In the
past, it has taken over a year for half of the effect
of relative price movements to appear in export
volumes and over two years for the full effect to
be felt. Much of the growth in volume in 1986,
therefore, reflects lagged adjustments to price
changes in 1985.
The expansion in U.S. exports varied widely
among regions. Most of the increase in nonagricultural exports in 1986 went to Western Europe
and Japan, where the dollar's value has fallen
most (table 3). Exports to Latin America, other
developing countries, and Canada essentially did
not change year over year. As a consequence,
those areas accounted for a somewhat smaller
share of U.S. exports than in previous years.
The rise in the value of nonagricultural exports
was partly offset by a decline in the value of
agricultural exports, which shrank $3 billion in
1986, almost entirely because of falling prices.
3. U.S. nonagricultural exports, by region
Billions of dollars, except as noted
Importing area
Canada
Western Europe
Japan
Asian newly
industrialized
countries' . . .
Latin America . . .
All other
Change
Share,
1986
(percent)
1985
1986
184.8
194.8
10.0
100
51.7
48.9
16.7
52.1
53.3
21.2
.4
4.4
4.5
27
27
11
13.0
26.5
27.9
14.3
27.2
26.7
1.3
.7
-1.2
7
14
14
1. Includes Hong Kong, Singapore, Taiwan, and Korea.
SOURCE. U.S. Department of Commerce, Bureau of Economic
Analysis, balance of payments accounts.
U.S. International
Lower support prices introduced during the year
promoted an improvement in the price competitiveness of major U . S . crops and thus enlarged
the volume of exports. Although ample foreign
supplies have made marketing abroad difficult
for many commodities, a drought in Brazil, a
major supplier, augmented the demand for U.S.
soybean exports.
The dollar's depreciation seems to have affected export volumes significantly in 1986, but its
effects on import prices were only beginning to
appear. The price of non-oil imports began to rise
noticeably in 1986 after nearly five years of
decline. Prices for several major import categories, including consumer goods, automotive
products, and capital goods other than business
machines, turned up briskly (table 4). Even the
price of imported industrial supplies turned up in
the second half of the year (though it was off for
the year as a whole). This general trend suggests
that overall import prices have begun to rise
faster than the rate of U.S. inflation, so that the
price competitiveness of domestic products has
improved.
Chart 8 shows the relationships among U.S.
consumer prices, the prices of U.S. non-oil imports, and the consumer prices (in dollars) of the
major exporters to the United States over the
past decade. Between 1976 and 1980, when
swings in the real value of the dollar were
relatively small, U.S. consumer prices and import prices moved fairly closely together. During
the years 1980-85, when the dollar appreciated,
import prices followed foreign prices and fell
about 3 percent, while U.S. consumer prices
4. Change in the prices of non-oil imports'
Percent change
Type of import
Non-oil imports
Consumer goods
Automotive products
Capital goods
Business machines
Other capital goods 2
Industrial supplies
Food
1984:41985:4
1985:41986:4
-.9
6.3
1.1
5.0
6.7
10.1
-1.7
-20.1
1.0
-6.9
-2.2
8.6
-7.2
8.4
-.9
8.7
1. As measured by GNP fixed-weight deflators.
2. Estimated by Federal Reserve staff.
SOURCE. U.S. Department of Commerce, Bureau of Economic
Analysis.
Transactions
in 1986
325
8. U.S. non-oil import prices
Ratio scale, 1 9 8 0 = 100
1976
1978
1980
1982
1984
1986
1. The foreign CPI is the weighted average of the CPIs of 18
countries converted into dollars. The weights are 1978-83 non-oil
import shares.
rose 32 percent. Between early 1985 and the end
of 1986, foreign prices rebounded about 25 percent as the dollar fell, while U.S. import prices
rose only 7 percent. About a third of the gap
between foreign prices and U.S. import prices
since 1985 represents an unusually slow response
of import prices to the fall in the dollar.
Historically, about 90 percent of a change in
the dollar's value against a broad basket of
currencies has been passed through to import
prices; the rest has apparently been absorbed as
sustained changes in profit margins. This passthrough has taken up to two years on average;
about half of it has taken place in the first two or
three quarters. The rise in import prices in 1986
was about 5 percentage points less than this
average historical relationship suggests, possibly
because foreign exporters had a greater willingness to absorb the depreciation into their profit
margins in light of relatively sluggish growth in
their own home markets.
The unusually slow response of import prices
may have several other explanations. For one
thing, the dollar's rate of depreciation has varied
more among important currencies than in the
past, and in many cases products from countries
where appreciation has been low compete in the
same U.S. markets as products from countries
where it has been high. Imports from the "low
appreciation" countries set price ceilings in
these markets, which gives the currencies of
those countries a larger influence on import
prices than their import shares suggest. Also,
during the prolonged appreciation of 1980-85,
importers undertook extensive fixed investments
326
Federal Reserve Bulletin • May 1987
5. Change in the volume of non-oil imports
Percent
Type of import
Non-oil imports
Consumer goods
Automotive products
Capital goods
Business machines
Other capital goods
Industrial supplies
Excluding gold
Food
Other
Change,
1984:41985:4
Change,
1985:41986:4"
Share,
1986:4"
8.4
10.2
100
8.5
14.7
10.1
16.6
7.5
-.6
.1
2.3
43.5
12.9
5.0
16.3
43.0
4.8
12.7
3.4
1.4
-14.6
22
19
26
9
17
23
20
6
3
p Preliminary.
SOURCE. U.S. Department of Commerce, Bureau of Economic
Analysis, balance of payments accounts.
in distribution and marketing networks, which
now support higher import volumes; so long as
price covers variable costs it is economic to
maintain these networks. A similar argument
applies to many manufactured imports, whose
design content—a fixed cost—has grown faster
than their material or direct-labor content.
Although prices rose during 1986, the increase
in the value of non-oil imports reflected primarily
a rise in volume that encompassed most major
trade categories (table 5). Increases were particularly pronounced in business machines and consumer goods. The strength of consumer goods
imports was due in part to the relative strength of
U.S. consumption and in part to the relatively
slow adjustment of these import prices overall:
45 percent of U.S. imports of consumer goods
comes from developing countries in Asia whose
currencies have not appreciated against the dollar in real terms. A somewhat smaller increase
was recorded for imports of capital goods other
than business machines and many industrial supplies that come from Western Europe and Japan,
against whose currencies the dollar has fallen
sharply. Even though price increases in those
categories were restrained as firms cut profit
margins, the increases that were recorded appear
to have retarded overall growth in imports, particularly in capital goods.
The value of oil imports fell sharply in 1986. A
virtual halving in price between 1985 and 1986,
from over $26 per barrel to less than $15 per
barrel, was only partly offset by a 25 percent
increase in volume. (See chart 9.) The volume of
oil imports rose markedly, if irregularly, during
much of 1986; the expansion was aimed partly at
rebuilding stocks and partly at exploiting the
break in oil prices as oil production by the
countries in the Organization of Petroleum Exporting Countries increased during the year. The
rise in import volume also reflected two other
developments: U.S. domestic oil production declined 8 percent during 1986 (0.9 million barrels
per day, December to December), largely because many small "stripper" wells were not
economically viable at the lower price; and U.S.
oil consumption rose 2.5 percent, reversing a
decade-long trend of decline. Oil prices rebounded, and the volume of imports fell in the fourth
quarter in anticipation of an announcement in
December of an OPEC agreement to limit production.
OTHER CURRENT
ACCOUNT
TRANSACTIONS
Alongside the growing trade deficit, the traditional U.S. surplus on other current account
transactions remained very small in 1986. Overall net services receipts were virtually the same
as the year before, as divergent movements
within these accounts offset one another (table
6). Net direct investment income rose above the
1985 level because of the marked depreciation of
the dollar: profits earned in other countries were
equivalent to a larger dollar amount, and accounting rules produced reports of large unrealized currency-translation gains. At the same
time, net receipts from nondirect (portfolio) investment income declined nearly $10 billion,
reflecting the growth of U.S. net indebtedness to
foreigners (discussed below). Net receipts on
9. U.S. oil imports
U.S. International
Transactions
in 1986
327
6. U.S. nontrade current account transactions'
Billions of dollars, seasonally adjusted annual rate
Account
1984
1982
1983
Total, nontrade current account transactions
27.3
20.5
6.1
6.8
7.1
Service transactions, net
Net investment income
Net direct investment income
Net portfolio investment income
Net military
Other services, net
36.2
28.7
18.2
10.4
-.3
7.8
30.0
24.8
14.9
9.9
-.4
5.5
18.2
18.8
12.3
6.5
-1.8
1.3
21.7
25.2
26.3
-1.1
-2.9
-.5
22.3
22.9
32.5
-9.7
-2.4
1.8
-8.9
-1.2
-7.8
-9.5
-1.0
-8.5
-12.2
-1.4
-10.7
-15.0
-1.6
-13.4
-15.1
-1.2
-13.9
Unilateral transfers
Private transfers
U . S . government grants and pensions
1. Components may not add to totals because of rounding.
other services, including travel, transportation,
and passenger fares, began to turn up in 1986, in
response to the improvement in U.S. price competitiveness associated with the real depreciation
of the dollar.
Because of the recent large deficit on the
current account, the United States has shifted
from being a large net creditor to being a large
net debtor on its international investment position (table 7). Although the direction of the
change is clear, its precise size is uncertain
because of inadequacies in the valuation of certain assets and because of persistent statistical
discrepancies in the U.S. international transactions accounts that are probably due in part to
unrecorded capital flows. The increase in U.S.
net investment income payments on its growing
net indebtedness was not so large as might have
1985
1986
SOURCE. U . S . Department of Commerce, Bureau of Economic
Analysis.
been expected given the increase in the scale of
the debt alone. The decline in U.S. interest rates
in 1986 tended to moderate the payments on the
growing debt.
CAPITAL
ACCOUNT
TRANSACTIONS
The recorded $141 billion deficit on the current
account for 1986 was balanced by recorded net
capital inflows of $114 billion and a statistical
discrepancy of $27 billion (table 8). In a notable
shift from earlier years, when net private capital
inflows financed almost all of the current account
deficit, official reserve holders accounted for a
significant part of the recorded capital inflow in
1986 (almost $32 billion). Much of that sum
represented exchange market intervention by the
G-10 countries that was aimed at slowing the
7. International investment position of the United States'
Billions of dollars
Item
Total, net international investment position
Net direct investment
Other recorded portfolio investment, net
Gold
Cumulative unrecorded transactions 2
Recorded position plus cumulative unrecorded transactions 3
1. Components may not add to totals because of rounding. Positive
figures denote U . S . investment abroad; negative figures indicate
foreign investment in the United States. All data except those for 1986
include estimates for gains or losses on assets denominated in foreign
currency due to their revaluation at current exchange rates, as well as
estimates for price changes in stocks, bonds, and other assets. Other
adjustments to the value of assets relate to changes in coverage,
statistical discrepancies, and the like.
2. This item is the statistical discrepancy from the U . S . international transactions account, which is cumulated beginning in 1959 with a
base of zero. A positive discrepancy in the international transactions
1982
1983
1984
1985
1986 F
136.2
88.5
4.4
-107.4
-238.0
83.1
42.0
11.1
-112.5
23.7
70.1
7.3
11.1
-123.7
-35.2
48.4
-55.1
11.1
-151.0
-14.6
49.7
-168.2
11.1
-174.0
-281.4
56.0
-305.1
11.1
-184.0
-422.0
account appears here with a negative sign, on the assumption that it
represents a net accumulation of claims by foreigners.
3. This item is equivalent to the cumulative U . S . current account
position plus valuation adjustments (see note 1).
e Estimate.
SOURCES. 1981-85, net recorded position—Survey of Current Business, vol. 66 (June 1986), p. 28; 1981-85, other data—U.S. Department of Commerce, Bureau of Economic Analysis. All data for 1986
are estimates by Federal Reserve staff based on 1986 flows adjusted
for reporting change. Estimates do not include valuation adjustments
(see note 1).
328
Federal Reserve Bulletin • May 1987
8. Capital transactions'
Billions of dollars
Type of transaction
Private capital, net
Securities, net
Private foreign net
purchases
U.S. Treasuries . . .
U.S. corporate
bonds
U.S. corporate
stocks
U.S. net purchases of
foreign securities
1983
1984
1985
1986
35.7
13.4
84.7
32.4
102.7
60.4
81.8
75.2
tSP I I I
8.7
23.1
20.5
9.3
5.3
15.4
43.0
53.4
6.4
-.9
4.9
17.2
-7.0
-5.1
-8.0
-4.8
8.5
19.8
2.1
-6.3
Direct investment, net
Foreign direct in
U.S
U.S. direct
investment
abroad
11.9
25.4
17.9
25.6
-3.5
-5.6
-15.8
-31.9
Net inflows reported by
U.S. banks
Other
20.4
-6.6
22.7
9.8
39.7
.5
20.1
-7.3
Official capital, net
-.2
-5.6
-8.0
31.7
Statistical discrepancy . . .
11.1
27.3
23.0
27.1
-106.5
-117.7
-140.6
Current account
-46.6
1. A minus sign indicates an outflow.
appreciation of their currencies. Several Asian
developing countries also added substantially to
their official holdings in the United States, while
the OPEC countries continued to draw down
their assets. Though sizable, the $32 billion inflow understates the role of official reserve holders in financing the U.S. external deficit in 1986.
These agencies also increased their holdings of
dollar-denominated assets in the Euromarkets. If
such transactions were recorded in the U.S.
capital accounts the inflows attributed to foreign
official reserve holders would rise and those
attributed to private foreigners would fall.
Securities transactions once again dominated
private capital flows. Attracted by the booming
stock market, foreigners purchased net a record
$17 billion of U.S. corporate stocks. Foreign
purchases of corporate bonds remained strong,
as U.S. corporations continued to take advantage of relatively low long-term interest rates to
restructure their balance sheets and issued a
large volume of bonds in both the domestic and
the Eurobond markets. However, the share of
Eurobonds in new publicly offered issues by
U.S. corporations fell markedly in 1986. Recorded net purchases of U.S. Treasury securities by
private foreigners, particularly Japanese residents, declined sharply in 1986, though this de
cline was more than offset by large increases in
purchases of Treasury securities by foreign official institutions.
The available data may not fully reflect the
activity of Japanese asset holders. Japanesebased securities dealers have been active in U.S.
Treasury auctions, and private Japanese net purchases of U.S. securities in general continued to
grow in 1986, according to Japanese balance of
payments data. But data from the U.S. Treasury
International Capital Report do not show substantial net sales of Treasury securities to Japanese residents and other foreigners in 1986. A
partial reconciliation of this apparent divergence
may lie in the way Japanese residents diversified
their purchases of securities in 1986. U.S. data
do record substantial increases in Japanese net
purchases of U.S. corporate stocks and bonds
and the bonds of U.S. government agencies and
corporations, as well as purchases from U.S.
residents of foreign stocks and bonds. Nevertheless, a substantial discrepancy remains. Although underreporting in the U.S. data cannot be
ruled out, the fact that the statistical discrepancy
did not increase much in 1986 suggests that the
reporting system is not suddenly missing transactions that it captured in earlier years and that the
sharp drop in Japanese private net purchases of
U.S. Treasury bonds and notes in 1986, from
$17.9 billion to $3.9 billion, correctly indicates
the direction of change.
Foreign direct investment in the United States
reached record levels in 1986, as numerous large
mergers and takeovers consummated before the
new tax law became effective swelled the inflow.
Direct investment abroad by U.S. residents nearly doubled in 1986, largely because of the accounting effects of the depreciation of the dollar
on reinvested earnings.
Net inflows reported by banks were modest in
1986, particularly in comparison with 1985.
Growth of liabilities to Latin American institutions other than banks dropped from the high
1984 and 1985 rates, and the steep 1985 decline in
bankers acceptances was followed by only a
small one in 1986.
PROSPECTS
FOR
1987
The exchange rate adjustment to date lays a
foundation for some improvement in the U.S.
U.S. International
trade balance in the period ahead. Export volumes have begun to respond to the improvement
in U.S. price competitiveness, and import prices
have begun to rise. As contracts expire and
domestic suppliers adjust production, the growth
of import volume should slow to a rate closer to
that of U.S. domestic demand and well below
that of real exports. Since this adjustment is
driven by price movements, the volume for a
time may not fall as fast as prices are rising.
During this period the trade balance may deteriorate in nominal terms even while it is improving
in real terms.
Transactions in 1986
329
With respect to the services account, net receipts of noninvestment income are likely to
respond positively to improvements in U.S.
price competitiveness. However, the investment
income component is likely to continue to deteriorate as long as the United States is running a
current account deficit and U.S. debt to foreigners is rising. As the United States moves further
into deficit on net services, the eventual elimination of the U.S. current account imbalance will
require an even larger swing in the trade balance.
330
Treasury and Federal Reserve
Foreign Exchange Operations
This quarterly report, covering the period November 1986 through January 1987, provides
information on Treasury and System foreign
exchange operations. It was prepared by Sam Y.
Cross, Manager of Foreign Operations of the
System Open Market Account and Executive
Vice President in charge of the Foreign Group of
the Federal Reserve Bank of New York.1
After trading fairly steadily throughout November and the first half of December, the dollar
moved sharply lower until the end of January. It
closed the period down more than 11 percent
against the German mark and most other continental currencies, about 7 percent against the
Japanese yen and the British pound, and almost 4
percent against the Canadian dollar. Foreign
central banks made large dollar purchases during
the period. The U.S. authorities intervened on
one occasion in late January.
As the period opened, the dollar had moved up
from the lowest levels reached against the yen
and the mark in the third quarter. Many market
participants were beginning to believe that the
dollar, after a long decline, was entering a stage
of greater near-term stability. There were some
indications that the favorable side of depreciation was starting to show through in the U.S.
economy. The trade deficit seemed to have stabilized at last, though remaining large at $14 billion
a month. Output growth in the third quarter also
appeared to have been a little stronger than many
market participants had previously expected,
suggesting some strengthening of export demand.
Meanwhile, the cumulative effects of the dollar's prolonged depreciation were seen in finan1. The charts for the report are available on request from
Publications Services, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.
cial markets to be exerting pressures in other
countries for more exchange rate stability. Although Japan's trade surplus remained high in
nominal terms, the yen's sharp appreciation was
eroding competitive positions, resulting in some
production cutbacks for overseas markets and
contributing to a rise of unemployment rates.
Questions arose as to whether Japanese domestic demand would remain strong enough to sustain the modest rate of economic growth forecast
for the current year. In late October, there had
been an announcement of a cut of Vi percentage
point in the Bank of Japan's discount rate and of
an economic policy accord between U.S. Treasury Secretary Baker and Japanese Finance Minister Miyazawa. The monetary policy action,
together with the accord's assurances with respect to Japanese and U.S. fiscal policies, was
seen as supportive of more favorable prospects
for the Japanese economy and for a reduction in
the two nation's external imbalances. At the
same time, understandings reached in the BakerMiyazawa agreement—that the exchange rate
realignment already accomplished between the
two currencies was "now broadly consistent
with the present underlying fundamentals" and
that the two nations were reaffirming their willingness to cooperate on exchange rate issues—
took pressure off the yen in the exchange market.
The accord seemed to imply agreement that the
yen's appreciation was sufficient, at least for the
time being. Many market participants also believed that, henceforth, official intervention—
perhaps on a coordinated basis—would be used
if necessary to counter a new rise in the yen.
In the case of Germany, the mark's appreciation was seen in the market as increasing pressure on German authorities to take steps to ease
currency strains within the European Monetary
System (EMS). Since the mid-September Economic Community (EC) meeting in Gleneagles,
331
Scotland, central banks participating in the EMS
monetary arrangements had used exchange market intervention to try to protect the EMS from
tensions associated, in part, with the decline in
the dollar. Although there was little evidence
that Germany's internal economy was suffering
heavily from the effects of the mark's appreciation, many market participants expected the
Bundesbank to buy dollars in the exchange market if the dollar resumed a significant downward
movement.
Under these circumstances, market professionals moved in early November to cover short
dollar positions assumed earlier. This bidding for
dollars helped push up dollar rates to their highs
of the three-month period, around DM2.08
against the mark and ¥ 1 6 5 against the yen. The
dollar continued for a time to be reasonably well
bid, especially against the Japanese yen as institutional investors from Japan bought a broad
variety of dollar-denominated assets, including
equities and real estate investments. The continuing firmness of the dollar vis-a-vis the yen
took on a self-reinforcing character, with the
dollar standing well above ¥160. After announcement of the Baker-Miyazawa accord,
confidence grew that the dollar would stay
around these levels. Consequently, Japanese investors not only bought new dollar-denominated
securities, they also repaid loans used to finance
previous investments. In early December, when
dollar interest rates began to rise largely for
seasonal and tax-related reasons, the costs of
dollar borrowings increased and Japanese investors unwound their hedges further.
The dollar was not as strong against the European currencies as it was against the yen. After
the dollar reached its high against the mark in
early November, market professionals began to
build up their mark positions, and many European-based investors who had hedged their dollar
assets earlier in the year were content to retain
their protection against a renewed decline of the
dollar. In addition, market participants came to
the view that the agreement between Secretary
Baker and Minister Miyazawa was not relevant
for the dollar-mark exchange rate. In these circumstances, the dollar eased back against the
mark in November and early December. It subsequently rose against the mark in mid-Decem-
ber, however, when reports of a trip by Secretary Baker to Europe generated expectations
that the German authorities would join in an
agreement on exchange rate stability similar to
the Baker-Miyazawa accord. By the middle of
December, the dollar was trading near DM2.03,
down a modest Wi percent against the mark
since the end of October; it was virtually unchanged against the yen at about ¥163.
While the view that the dollar was in a period
of stability dominated trading until mid-December, several developments were taking place at
the same time that gradually undermined the
market's confidence in that view. Many market
participants were becoming convinced that U.S.
domestic demand was slowing and that any signs
of strength would prove temporary, reflecting
shifts in the timing of transactions before new tax
laws took effect at the start of the year. The
prospects for 1987 were increasingly seen as
dependent on a turnaround in the U.S. trade
position.
At the same time, U.S. congressional elections
resulted in a Republican loss of the Senate majority. This outcome was interpreted as complicating the administration's efforts to maintain control of economic policy, most especially to resist
pressure for protectionist legislation or calls for a
lower dollar. Political uncertainties intensified
after revelations that some U.S. officials had
participated in controversial arms sales.
1. Federal Reserve reciprocal currency arrangements
Millions of dollars
Institution
Amount of
facility,
January 30, 1987
Austrian National Bank
National Bank of Belgium
Bank of Canada
National Bank of Denmark
Bank of England
Bank of France
German Federal Bank
Bank of Italy
Bank of Japan
250
1,000
2,000
250
3,000
2,000
6,000
3,000
5,000
Bank of Mexico
Netherlands Bank
Bank of Norway
Bank of Sweden
Swiss National Bank
Bank for International Settlements
Dollars against Swiss francs
Dollars against other authorized European
currencies
700
500
250
300
4,000
Total
600
1,250
30,100
332
Federal Reserve Bulletin • May 1987
Meanwhile, developments in Germany and
Japan indicated that the major industrial countries might be moving away from the economic
conditions needed for greater exchange rate stability. In Germany, short-term interest rates rose
markedly in November and December. While
some of the tightness was attributed to seasonal
factors, there was concern in the market that the
German central bank might have adopted a more
restrictive monetary stance to curb above-target
expansion in central bank money. Comments by
some German officials seemed to support this
view. In Japan, the government adopted a budget
late in December for the fiscal year beginning in
April 1987 that did not appear to provide the
degree of fiscal support to the economy expected
after the Baker-Miyazawa accord.
Although the dollar started to soften during the
second half of December in response to these
developments, market forces did not turn decidedly against the dollar until year-end. On December 31, preliminary U.S. trade statistics were
released showing a massive deficit for November
of $19.2 billion. Several days later, Secretary
Baker and other administration officials commented that special and temporary factors distorted the figures for November and that some of
these factors could also influence December
trade flows, which might show a similarly large
gap.
The preliminary November trade figures were
a severe disappointment to the market. They
dispelled the belief that a favorable shift in U.S.
trade performance had begun and cast an even
more pessimistic shadow on the outlook for
economic growth in the new year. Moreover, the
figures enhanced the position of those arguing
2. Drawings and repayments by foreign central
banks under regular reciprocal currency
arrangements 1
Millions of dollars, drawings or repayments ( - )
Central bank
drawing on
the Federal
Reserve
System
Bank of
Mexico.
Outstanding,
November
1, 1986
November
December
January
Outstanding,
January
30, 1987
143.4
-66.8
-39.6
61.8
-37.4
61.4
1. Data are on a value-date basis.
that the United States needed to take an aggressive approach to improving its trade position.
The debate on trade policy gained new attention
with the reopening of the Congress early in
January. Against this background, statements
attributed to several U . S . officials were interpreted by market participants as being consistent
with the view that the United States now welcomed a lower dollar. By the start of the new
year, market sentiment toward the dollar had
turned clearly bearish, and dollar rates moved
sharply lower—to DM1.92 and ¥158, down more
than 5 percent and 3 percent since mid-December against the mark and the yen respectively.
In early January, the selling of dollars against
the mark subsided temporarily as the market
focused its attention on a rapidly changing situation within the EMS. As the mark was rising
against the dollar and emerging at its top intervention limit within the EMS arrangement, some
other EMS currencies were being weakened by
concerns about underlying competitiveness and
the sustainability of balance of payments positions. Earlier, market participants had widely
assumed that no adjustment of EMS parities
would take place before national elections in
Germany in late January. But as pressures within
the EMS intensified and intervention to preserve
existing parities ballooned, the prospect of an
earlier realignment developed. During the first
weekend in January, press commentary suggested that the German authorities would accept an
immediate realignment rather than face several
weeks of massive intervention that might undermine the Bundesbank's efforts to maintain control over monetary growth. The next week the
EMS currencies were caught up in a speculative
whirlwind as residents of EMS countries other
than Germany sought to hedge their mark commitments. The EMS exchange rate structure was
maintained by intervention until the January 10
weekend when a realignment was agreed upon.
After the realignment, reflows out of marks into
other EMS currencies were slow to materialize.
Once the EMS realignment was over, traders
perceived the Bundesbank as unlikely to intervene in dollars to prevent movements in dollar
exchange rates from aggravating EMS strains.
Thus, the dollar came under sharp selling pressure when trading resumed after the realignment,
Treasury and Federal Reserve Foreign Exchange
Operations
333
3. Drawings and repayments by foreign central banks under special swap arrangements
with the U.S. Treasury 1
Millions of dollars, drawings or repayments ( - )
Central bank drawing
on the U.S. Treasury
Bank of Mexico
Central Bank of Nigeria
Amount of
Facility
Outstanding,
November
1, 1986
November
December
January
Outstanding,
January
30, 1987
273.0
144.0
-67.0
61.6
22.2
-7.4
-39.8
62.0
-14.8
-37.6
37.0
*
*
1. Data are on a value-date basis.
*No facility
pressure that was to continue for most of the rest
of the month.
Selling of dollars against yen also built up
rapidly. With the dollar below ¥ 1 6 0 against the
yen, market participants questioned whether the
Baker-Miyazawa accord would indeed assure
exchange market stability. Finance Minister
Miyazawa and Bank of Japan Governor Sumita
were reported to have made it known, to reassure the markets, that the Japanese central bank
would intervene to prevent the dollar from depreciating further, almost regardless of cost. At
the same time, market participants commented
that there were no similar statements by U.S.
officials. On January 13, after the dollar broke
through ¥ 1 5 8 , Japanese exporters rushed to sell
dollars, and Japanese investment houses and
pension funds flooded the market with forward
sales to hedge their dollar exposures. The dollar
declined more than 1 percent against the yen that
day in heavy trading. The Japanese press reported that the Bank of Japan had bought huge
amounts of dollars. Traders interpreted the report as indicating that the pressure on the dollar
was so strong that official intervention without
the participation of the U.S. authorities would
fail.
Against this background, a news report on
January 14, citing an unidentified U.S. official as
stating that the U.S. administration wanted the
dollar to decline further, unleashed new selling of
dollars against both the mark and the yen. The
dollar fell more than 3 percent against both
currencies in a few hours of extremely nervous
trading.
The dollar's decline continued throughout
most of January as strong selling pressure
mounted on three additional occasions. Each
occurred in response to various statements, at-
tributed to administration officials, which market
participants believed reflected a continuing lack
of official concern about the dollar's decline. The
dollar hit a post-World-War-II low of ¥149.98
against the yen on January 19, and a seven-year
low of DM1.7675 against the mark on January 28.
On January 21, a consultation between Secretary Baker and Finance Minister Miyazawa resulted in a joint statement that, among other
things, reaffirmed their willingness to cooperate
on exchange rate issues. When the dollar moved
down on the morning of January 28, after the
President's State of the Union Message, U.S.
authorities intervened in yen in a manner consistent with the joint statement. Operating in coordination with the Japanese monetary authorities,
the Foreign Exchange Trading Desk purchased
$50 million against the sale of yen, financed
equally by the Federal Reserve and the U.S.
Treasury.
During the final days of the month, pressures
against the dollar subsided. Reports of the U . S . Japanese intervention operation and talk of an
upcoming meeting of financial authorities of the
major industrial countries encouraged expecta4. Net profits or losses (—) on U.S. Treasury and
Federal Reserve current foreign exchange
operations
Millions of dollars
Period1
November 1, 1986January 30, 1987
Valuation profits and
losses on outstanding
assets and liabilities as
of January 30, 1987
1. Data are on a value-date basis.
Federal
Reserve
U.S. Treasury
Exchange
Stabilization
Fund
8.0
6.6
-2,322.8
-1,975.0
334
Federal Reserve Bulletin • May 1987
tions for broader cooperation on exchange rate
and economic policy matters. Also, release of
preliminary U.S. trade data for December, showing a much smaller deficit of $10.7 billion, and a
substantial downward adjustment in the revised
data for November revived the view that the
U.S. trade deficit had stabilized.
Moreover, doubts had developed about the
future course of U.S. interest rates. The swift
decline in dollar exchange rates raised questions
in the market as to whether the Federal Reserve
would let short-term rates ease. Market participants also noted that U.S. market interest rates
had not completely fallen back to the levels
prevailing before year-end. Interest rates in other
countries were, by contrast, below late-November levels, especially in Germany after the
Bundesbank announced on January 22 cuts of Vi
percentage point in its discount and Lombard
rates to 3 percent and 5 percent respectively,
effective January 23, in conjunction with other
monetary policy measures.
Thus, the dollar firmed from its lows against
both the mark and the yen to close the period at
DM1.8320 against the mark and ¥153.70 against
the yen. As measured by the Federal Reserve
Board's trade-weighted index, it had declined 9
percent since the beginning of the three-month
period.
SHORT-TERM
FINANCING
FACILITIES
regular swap facility with the Bank of Mexico.
As of November 1, $144 million was outstanding
from the drawings on the ESF and $143.4 million
was outstanding from the drawings on the Federal Reserve. The Central Bank of Mexico repaid
its August 29 drawings from the ESF and the
Federal Reserve in three installments starting on
November 26, and liquidated them by January 5.
On December 8, after Mexico received disbursements under loans from the International
Bank for Reconstruction and Development, the
Central Bank of Mexico became eligible to draw
the remaining $250 million under the mutilateral
facility. On this date, Mexico drew $62 million
from the ESF and $61.8 million from the Federal
Reserve. On January 5, the Central Bank of
Mexico repaid the ESF and the Federal Reserve
each $0.4 million in connection with its other
repayments, leaving $61.6 million outstanding on
its December drawing from the ESF and $61.4
million outstanding on its drawing from the Federal Reserve at the end of the period. After the
period closed, Mexico fully liquidated these outstanding commitments.
Nigeria. At the beginning of the period, Nigeria had a swap drawing of $22.2 million outstanding from a short-term facility of $37 million
provided by the ESF. This facility was part of a
short-term credit facility of $250 million organized under the leadership of the Bank of England. The Central Bank of Nigeria repaid $7.4
million on November 28 and the remaining $14.8
million on December 10.
At the beginning of the three-month period,
Mexico and Nigeria had drawings outstanding on
short-term financing facilities of the U.S. monetary authorities.
ESF
Mexico. As noted in the last quarterly report,
$850 million of a $1.1 billion multilateral nearterm contingency support facility for Mexico's
international reserves was made available jointly
by the U.S. monetary authorities, the Bank for
International Settlements (acting for certain central banks), and the central banks of Argentina,
Brazil, Colombia, and Uruguay on August 29.
On that date, the Central Bank of Mexico drew
$211 million from the U.S. Treasury through the
Exchange Stabilization Fund (ESF) and $210.2
million from the Federal Reserve through its
In the period from November 1 through January
30, the Federal Reserve and the ESF realized
profits of $58 million and $6.6 million respectively. As of January 30, cumulative bookkeeping or
valuation gains on outstanding foreign currency
balances were $2,322.8 million for the Federal
Reserve and $1,975 million for the Treasury's
ESF. These valuation gains represent the increase in the dollar value of outstanding currency
assets valued at end-of-period exchange rates,
compared with the rates prevailing at the time
the foreign currencies were acquired.
PROFITS
Treasury and Federal Reserve Foreign Exchange Operations
The Federal Reserve and the ESF invest foreign currency balances acquired in the market as
a result of their foreign operations in a variety of
instruments that yield market-related rates of
return and that have a high degree of quality and
liquidity. Under the authority provided by the
335
Monetary Control Act of 1980, as of January 30,
the Federal Reserve held $3,103.6 million equivalent in securities issued by foreign governments. As of the same date, the Treasury held
the equivalent of $4,265.5 million in such securities.
•
336
Industrial Production
Released for publication
March 13
crease in motor vehicle production, which boosted output of both consumer goods and business
equipment. In most other sectors, small increases in production occurred during the
month. At 127.3 percent of the 1977 average, the
total index for February was 1.7 percent higher
than it was a year earlier.
In market groups, production of durable consumer goods advanced 2.3 percent during Febru-
Industrial production increased an estimated 0.5
percent in February. The level of output was
revised up for December and down for January,
resulting in a larger increase (0.5 percent) in
December and a lower gain (0.1 percent) in
January than was estimated a month earlier. The
February gain was dominated by a sharp in-
Ratio scale, 1977 = 100
Products
140
TOTALINDEX
120
H
Materials
IOO
80
MANUFACTURING
140
Durable
MATERIALS
120
Nondurable
-
Durable
Nondurable
' —
100
INTERMEDIATE PRODUCTS
Business supplies
Construction supplies
I
140
I
L
240
FINAL P R O D U C T S
MOTOR VECHICLES A N D PARTS
200
Defense and space
120
100
160
140
20
Consumer goods
100
60
80
1981
1983
1985
1987
All series are seasonally adjusted. Latest figures: February.
1981
1983
1985
1987
337
Percentage change from preceding month
1977 = 100
Jan.
1987
1986
1987
Group
Feb.
Oct.
Nov.
Dec.
Jan.
Feb.
Percentage
change,
Feb. 1986
to Feb.
1987
Major market groups
Total industrial production
126.8
127.3
.3
.6
.5
.1
.5
1.7
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment..
Defense and s p a c e . . .
Intermediate products..
Construction supplies
Materials
135.2
133.6
126.8
119.3
129.6
137.5
186.5
140.9
130.0
115.3
136.0
134.5
127.5
121.7
129.7
138.9
187.2
141.2
130.2
115.5
.6
.4
.4
-1.0
.8
-.2
1.4
1.3
.3
-.2
.4
.4
.8
1.8
.4
-.4
.2
.4
.5
.9
.4
.4
1.3
2.8
.8
-1.1
.5
.4
1.0
.7
.1
-.1
-.3
-2.0
.2
.3
.4
.8
1.5
.1
.6
.7
.6
2.1
.1
1.0
.4
.3
.2
.2
2.3
1.3
3.5
4.7
3.0
-1.2
6.2
5.9
6.2
.6
Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities
131.1
128.8
134.3
98.8
111.3
131.8
129.9
134.4
98.8
112.1
.3
.4
.3
1.9
1.7
.6
.5
.6
-.2
-1.1
.1
-.3
.6
1.6
1.2
2.4
1.0
4.4
-6.0
2.2
NOTE. Indexes are seasonally adjusted.
ary owing to the sharp gain in autos. Assemblies
of autos were at an annual rate of 8.3 million
units, compared with the January rate of 7.5
million units; indications are that assemblies will
be lower in March. Output of home goods edged
up 0.3 percent in February; despite wide monthto-month swings recently, output of home
goods—especially appliances and furniture—has
been quite strong over the past half year.
Production of business equipment rose 1 percent in February, as output of autos and trucks
for business use increased sharply and some
strike rebound occurred in farm equipment. Other components of business equipment remained
weak, however, and only the transit equipment
group was producing at a level higher than it was
a year earlier. Output of defense and space
equipment continued to expand in February.
Production of construction supplies posted a
small rise in February following sharp gains in
December and January, and output of supplies
for business use also increased. Materials output
increased in February for the fourth consecutive
month after having declined throughout much of
1986. The recent strength in materials has been
concentrated in textiles, paper, and chemicals.
In industry groups, manufacturing output increased 0.5 percent with gains of 0.8 percent in
durables and of only 0.1 percent in nondurables.
Mining output edged up in February following a
sharp rise in January, and utility production
increased 0.7 percent during the month.
338
Statements to Congress
Statement by Martha R. Seger, Member, Board
of Governors of the Federal Reserve
System,
submitted to the Subcommittee
on Consumer
Affairs and Coinage of the Committee on Banking, Finance and Urban Affairs, U.S. House of
Representatives,
March 18, 1987.
interest rate to 5 percentage points above the
Federal Reserve discount rate, and H.R. 1267
would limit the rate to 6 percentage points above
the average percentage yield for three-month
Treasury bills.
CURRENT
I appreciate the opportunity to discuss the legislation that has been introduced to require price
and term disclosures in credit card applications
and solicitations, and to establish a nationwide
ceiling on credit card interest rates.
Generally, the Board believes in disclosure
and feels that it is important for consumers to
have adequate information to shop for credit. In
considering specific disclosure legislation, such
as that before the subcommittee, the Board is
guided by several basic principals. First, early
disclosure rules should be structured to provide
consumers with essential information, without
overloading consumers with less important information or unnecessarily raising creditor costs.
Second, the legislation should limit creditors'
compliance costs by providing adequate time to
comply with any new disclosure rules. Third,
any requirements that are adopted should apply
evenhandedly to all competitors.
All of the disclosure bills that have been introduced (H.R. 244, H.R. 515, and H.R. 1086)
would add an early disclosure requirement to the
Truth in Lending Act for open-end credit card
plans. Furthermore, all of the bills appear to
require disclosure for all types of credit cards,
including bank credit cards, travel and entertainment cards, and retail credit cards. Not all of the
bills are the same in their scope, however; H.R.
1086 deals only with disclosures in mail solicitations. H.R. 244 and H.R. 515 are broader and
would require disclosures in all applications for
credit cards as well as credit card solicitations.
The credit card interest rate bills would limit
the interest rate charged on any credit card
transactions. H.R. 78 would limit the credit card
LAW
Currently, the Truth in Lending law requires
early disclosures for open-end credit plans and
credit cards only when creditors engage in advertising. Solicitations for credit card accounts are
thus subject to some Truth in Lending disclosure
requirements, since they are considered "advertisements" under the statute and the Board's
implementing regulation, Regulation Z. The
creditor must give additional information about
the credit plan, however, only if certain terms
are stated in an advertisement. For example, if
the creditor advertises the plan's annual fee, the
advertisement must state the annual percentage
rate, as well as any other finance charges that
may be imposed.
If none of the specified credit terms are stated
in the solicitation, the law does not require that
price and term information about the plan be
given at that time. Consequently, while the act
and the Board's regulation do at times require
that consumers receive price information with
solicitations, the present law does not always
require that consumers be given this information
before they receive a credit card.
Under the current law, consumers must, however, be given full disclosure of the terms and
conditions of the credit card program no later
than the time that they receive the card. In
addition, the regulation provides that a consumer
may not be obligated on a credit program before
receiving complete disclosures; this provision
would include, for example, the obligation to pay
an annual membership fee. Therefore, consumers do have an opportunity to review all of the
terms and conditions of a credit card plan before
339
using the card or being obligated to pay an annual
fee.
The issue of how much disclosure to require in
advertisements led the Congress to revise the
Truth in Lending Act in 1980. At that time, the
Congress cut back on the disclosures required in
open-end credit advertisements in the hope that
reducing the disclosure burden would promote
more advertising, thereby increasing competition.
LEGISLATIVE
creditors to tell consumers how to obtain detailed information on the costs of the credit card
plan in nondirect mail solicitations, rather than
requiring that all this information be included.
The compliance costs are limited in H.R. 515
since, for "take one" applications, creditors may
comply with the disclosure requirements by disclosing the prices and terms as of a specified
date, and telling consumers that they should
contact the card issuer for up-to-date information.
PROPOSALS
CONTROLLING
The proposed bills go beyond the present law by
requiring that the creditor include certain disclosures in applications or solicitations for a credit
card plan without regard to whether the creditor
mentions a particular term. The proposed legislation expands the current statutory requirements
for advertising in other ways as well. Creditors
would be required to disclose whether or not any
time period exists for credit to be repaid without
incurring a finance charge—a disclosure that is
not required by the current advertising rules.
Under H.R. 1086, creditors would also be required to include a notice in solicitations telling
the consumer that the information given is only a
summary of certain credit card terms.
To the extent that the proposed disclosure
requirements might discourage open-end credit
advertisements, this legislation could have the
unintended effect of decreasing rather than increasing competition. We are inclined to think,
however, that given the limited scope of the
increased disclosure requirements in the bills,
particularly H.R. 1086, the legislation would not
have this effect. Our impression is that many
card issuers are already including in their mail
solicitations much of the disclosure information
proposed in the bills, and, presumably, have not
viewed this inclusion as an impediment to advertising.
Requiring disclosure in all applications whether or not the application is part of a mail solicitation—as H.R. 244 and H.R. 515 do—might have
the adverse effect of reducing advertising of
credit cards. Even this reduction appears unlikely, however, since the bills enable creditors to
limit their compliance costs. This limitation is
accomplished in H.R. 244 by only requiring
COSTS
Increased disclosure requirements invariably result in some increased costs to the industry.
However, additional costs would probably be the
least substantial under H.R. 1086, considering
that it focuses on the narrow area of mail solicitations. In mail solicitations creditors should be
able to include current disclosure information
without significant burden, since such solicitations are usually offered for a limited time with
stated expiration dates.
The burden could also vary, depending on the
creditor. National banks offering their credit
cards nationwide, for example, may be able to
have uniform credit terms so that a single solicitation or application would apply to all prospective cardholders. Retailers, in contrast, are generally subject to individual state laws, which
would make the use of uniform nationwide documents more difficult. In addition, the costs associated with additional disclosure requirements
would probably be proportionally greater for
small institutions.
The Board believes that one way to help
control costs is to provide sufficient time for
creditors to implement the changes made by the
legislation. The time periods contained in the
bills differ; however, we believe that the time
period provided in H.R. 1086 would most effectively minimize the transition cost and burden for
credit card issuers.
As a final point, the Board believes that the
proposed disclosure rules will most benefit consumers interested in bank and travel and entertainment credit cards, since it appears that retailers do not engage in significant mail solicitation
efforts. Of course, when consumers are provided
340
Federal Reserve Bulletin • May 1987
with early information about retail credit cards,
they should be provided adequate information
about the terms and conditions of those plans.
CREDIT CARD
CEILINGS
The Board has commented several times on bills
that would set floating ceilings on credit card
rates that would supersede generally less restrictive state-imposed limits. The Board has on
those occasions stated its opposition to those
bills that were very similar to the current interest
rate bill H.R. 78. In doing so, it has endorsed the
principle that—as with other types of credit—
consumer loans are most fairly and efficiently
allocated when there are no regulatory constraints on interest rates. Indeed, the Board has
been concerned about the adverse impact that
interest rate ceilings can have on the availability
of funds in local credit markets and on individuals with limited access to credit.
In response to a congressional request made
last year, the Board staff prepared an analysis of
the economic effects of proposed ceilings on
credit card interest rates. A condensed version of
the study, which appeared in the F E D E R A L R E SERVE B U L L E T I N , accompanies this testimony.
(See "The Economic Effects of Proposed Ceilings on Credit Card Interest Rates" in the January 1987 issue, pp. 1-13.) The following comments focus on the Board's major concerns with
proposed limitations on interest rates.
An effort to establish a federally mandated
ceiling on credit card interest rates would likely
encounter substantial difficulties. From experience with the imposition of credit controls in
1980 and the sharp, unexpected contraction in
consumer spending that accompanied them, we
know that regulatory measures can have unpredictable and unwanted consequences. Setting a
federal ceiling on credit card rates below those
that currently prevail in many states would likely
reduce the amount of credit made available,
forcing consumers to rely instead on less convenient and possibly more expensive substitutes or
to lose access to credit at any rate. Moreover,
such a curtailment would be apt to fall most
heavily on less affluent borrowers with relatively
limited access to other sources of credit. The
current ceiling for credit card rates under the
proposed bills would be between 10.5 percent
and 12 percent, well below the finance rates that
have been typical since credit cards emerged in
the early 1960s as a major method of consumer
financing.
Furthermore, the imposition of stringent rate
ceilings might be countered by a tightening of
nonrate credit card terms by card issuers, for
example, by increasing annual fees, by levying
processing charges on each credit card purchase
or cash advance, and by stiffening penalties for
late payment or for exceeding the authorized
credit limit. Some card issuers also might begin
applying the reduced finance charges from the
date of purchase, when permitted, rather than
after the grace period expires, and might seek to
increase the discount fees charged to merchants
who submit credit card vouchers to them for
payment.
Turning to the specific provisions of the bill
before the Congress, it should be emphasized
that credit cards are issued by a broad variety of
retail merchants and financial institutions that
differ both as to their sources of funding and their
liability structures. Under these circumstances, a
single index rate would be unlikely to mirror
changes in costs for such a diverse array of card
issuers. In any case, short-term rates, such as the
Treasury bill rate or the Federal Reserve discount rate, fluctuate a good deal more widely
than costs of funds of most lenders. They do so
because a lender's overall average cost of funds
at any point is a blend of current interest rates
and rates on previously issued liabilities, and
because market rates on longer-term liabilities—
which usually make up part of the cost of funds—
typically vary less than short-term rates.
If the Congress should nonetheless decide to
enact legislation, the Federal Reserve strongly
recommends against designating the discount
rate as an index for setting ceilings on credit card
rates. The discount rate, as you know, is the
interest rate charged by the Federal Reserve
Banks on extensions of short-term credit to
depository institutions. Because it typically applies to very short-term loans, the discount rate
is an inexact measure of either marginal or
average costs of loanable funds, which may
reflect a wide range of maturities. Furthermore,
the discount rate is a tool of monetary policy. As
such, it is an administered rate that reflects broad
Statements
to Congress
341
policy considerations that frequently are complex, and so may deviate from other market
rates, even those for instruments of comparable
maturity. It would be wrong, in the Board's
view, to employ a tool of monetary policy for this
issue.
Another question at issue is whether any regulation of credit card interest rates is more appropriately a matter for federal or for state intervention. In contrast to efforts at the federal level to
assure the safety and soundness of financial
institutions, the establishment of interest rate
ceilings on consumer loans has long been a state
prerogative, and one that the Board feels should
not be preempted. In recent years, virtually
every state has reviewed and overhauled its laws
regulating consumer interest rates. After having
studied the situation in their own jurisdictions,
many of these states have opted to raise or
remove interest rate ceilings for credit card borrowings. The Board respects the collective judg-
ment of a growing number of states that higher—
not lower—ceilings are appropriate to assure that
an adequate supply of credit card services is
available from lenders located there. Of course,
these states retain the authority to lower or
restore ceilings if convincing evidence of excessive rates appeared.
In closing, I would like to reemphasize the
Board's conviction that financial markets distribute credit most efficiently and productively when
interest rates are determined in markets that are
as free from artificial restraints as possible. Efforts to constrain credit card rates through federal regulation are likely to have undesirable side
effects in the form of reduced credit availability,
especially for those consumers that these bills
would seek to aid. Moreover, they may encourage less efficient means of offsetting costs of
credit card operations. Accordingly, the Board
concludes that it would be inappropriate to impose a federal ceiling on credit card rates.
•
Statement by Manuel H. Johnson, Jr., Vice
Chairman, Board of Governors of the Federal
Reserve System, before the Subcommittee
on
Financial Institutions, Supervision,
Regulation
and Insurance of the Committee on Banking,
Finance and Urban Affairs, U.S. House of Representatives, March 24, 1987.
Now that we have had some experience with
the operation of bank-affiliated export trading
companies under the legislation, we thought it
would be useful to share information on that
experience with you in connection with the committee's consideration of further refinements to
the concept of an export trading company. While
a beginning has been made in the development of
export trading companies as promoters of U.S.
exports, unfavorable economic conditions have
not provided an atmosphere in which export
trading companies can flourish.
Since the passage of the legislation in October
1982, the Federal Reserve has acted upon 43
notifications by bank holding companies to establish export trading companies. Sixteen of
these notifications have been acted upon by the
Reserve Banks under authority delegated to
them by the Board in 1983. This number represents more than 50 percent of the notifications
processed since the delegation rules were adopted.
The Board recently conducted a survey of nine
bank-affiliated export trading companies, selected to provide diversity of size and geographic
location of the bank holding company parent.
For those export trading companies that were
responsive to the survey, the size of the assets
I am pleased to appear before the committee
today to discuss with you again the topic of bankaffiliated export trading companies.
In its consideration of the export trading company legislation in 1982, the Congress determined that U.S. export performance was inhibited by the inability of U.S. businesses, especially
small- and medium-sized companies, to develop
foreign markets for their products because of
their lack of expertise in the mechanics of exporting. The Congress therefore sought to promote the establishment of companies that could
supply the necessary expertise to assist U.S.
companies in increasing exports of their goods
and services. In enacting the Bank Export Services Act (BESA), the Congress decided that one
method by which export trading companies
could be developed was by permitting affiliations
with banks through a bank holding company
structure.
342
Federal Reserve Bulletin • May 1987
ranged from $210,000 to $21 million, with the
average being $8.2 million, and gross revenues
ranged from $110 thousand to $18 million, with
the average also being $8.2 million.
The activities of these export trading companies were also quite diverse. Several companies
were engaged almost exclusively in transactions
involving the purchase and sale of goods, while
the others received their income largely from feebased services. The services included transportation; marketing and consulting; acting as an
agent for a foreign sales corporation; and trade
financing services. The survey suggests that
bank-affiliated export trading companies are able
to offer a broad range of services under the
current statute and regulations, and a number
appear to be operating profitably.
While results suggest that some bank-affiliated
export trading companies are operating successfully, others have experienced some difficulties.
Of the 43 bank-affiliated export trading companies of which the Board received notice, 14 are
no longer operational. In a few instances, the
cessation of activity by export trading companies
was related to changes in the ownership of the
export trading company, such as through acquisitions and mergers. However, this performance
has been largely related to the difficulties that
bank holding companies have experienced in
operating an export trading company. Besides
poor economic conditions in their first years of
existence, described below, which resulted in
diminished profit potential, these export trading
companies have also encountered start-up difficulties resulting from unfamiliarity with the trading business. Other problems encountered are
peculiar to the activities of trading companies,
regardless of how long they have been operating:
for example, a customer breaking the terms of its
own trade agreement, or the inability of an
export trading company to deliver on a major
contract, or inadequate controls over the trading
activities.
To the extent that the performance of bankaffiliated export trading companies has been disappointing, there is no evidence that trading
companies without bank affiliation have been
any more successful. While there is no comprehensive means of tracking the performance of all
these trading companies, the General Accounting Office, in the course of preparing its February
1986 "Report to Congress on the Implementation
of the Export Trading Company Act of 1982,"
conducted a survey of 23 trading organizations
that had obtained certificates of review from the
Department of Commerce. Many of those firms
reported that business was disappointing and
cited economic factors, particularly the high value of the dollar, as the reason.
Although the experience of bank-affiliated export trading companies to date has fallen short of
expectations, this is primarily due to the highly
unfavorable economic climate for U.S. exports
that has resulted from the overvalued exchange
rate for the U.S. dollar, the lack of adequate
economic growth in foreign industrial countries,
and the need for adjustment in many developing
countries. Therefore, the period since 1982 has
clearly not been a fair test of the viability of
bank-affiliated export trading companies on
which far-reaching changes in the law should be
based. Besides the macroeconomic conditions
faced by export trading companies, other factors
contribute to their slow development. It is still a
fledgling industry; the oldest of the bank-affiliated export trading companies is not yet four years
old. Moreover, a review of several articles concerning bank-affiliated export trading companies
in recent years indicates that the affiliation of two
such different corporate cultures as banking and
trading inevitably creates difficulties in forging a
viable and profitable enterprise. Moreover, the
publications generally do not attribute the lack of
success of export trading companies to the
Board's regulations, but rather to the various
economic and business factors that I have mentioned.
In efforts to make refinements to the legislation governing the operations of bank-affiliated
export trading companies, which we all see as a
desirable effort, banking organizations were perceived as providing two essential elements for a
successful export trading company—a source of
capital and financing and a network of foreign
offices able to evaluate foreign markets and
provide necessary foreign contacts. The legislation therefore created a very limited exception to
the statutory separation of banking and commerce to achieve the goal of improving the
export sector of the economy. The BESA was
not, as we read it, intended to let bank holding
companies perform every type of international
Statements
activity nor to relax to any great extent the
provisions protecting bank safety and soundness. Bank-affiliated export trading companies
were intended-to assist other companies in the
export of their goods and services and not to
compete with these companies by becoming
themselves producers of services for export.
Moreover, the act recognizes that there are activities from which export trading companies
should be explicitly excluded, such as securities
activities, agriculture, dealing in commodities,
and manufacturing. The act contains these and
other important safeguards that are intended to
maintain the separation of banking and commerce and to avoid compromising significant
supervisory goals. These measures were adopted
in recognition that one goal of national importance—export
promotion—should
not
be
achieved at the expense of another—a safe and
sound banking system.
The Board's regulations implementing the
BESA are designed to carry out the statute's
intent. Because the statute did not focus on
promoting trade, but on promoting U.S. exports
through export trading companies, our regulations are designed to ensure that such companies
engage in trade services that promote U.S. exports. As a result, the Board's regulation requires that 50 percent of a bank-affiliated export
trading company's business must derive from
exporting or facilitating the export of goods and
services produced in the United States by persons other than the export trading company and
its subsidiaries. Under this test, a bank-affiliated
export trading company may provide services to
any party, foreign or domestic, that is connected
to an international trade transaction, as long as
the majority of the company's business is exportrelated.
Let me, at this point, clear up some confusion
over one aspect of the 50 percent revenues test in
the Board's regulations. A bank-affiliated export
trading company may provide services not only
to unaffiliated persons, it can also help to promote the goods and services of any of its affiliates; that activity is considered as facilitating a
U.S. export under the regulation. For example,
an export trading company could market abroad
computer software developed by its bank holding
company parent; revenues derived from that
activity are considered export revenues. Thus,
to Congress
343
contrary to the perception of some, a bankaffiliated export trading company is authorized to
assist its affiliates in exporting services.
As I have mentioned, one of the fundamental
premises of the legislation is that bank-affiliated
export trading companies will facilitate the export of goods and services of other U.S. companies and will not engage directly in such activities
themselves. Accordingly, the Board's regulations, consistent with the purposes of the BESA,
prevent a bank holding company, under the guise
of an export trading company, from acting only
as a service company for foreigners, that is, from
engaging in a service activity, which might not be
even a trade service, that is provided only to
foreign parties. An example would be an insurance company that underwrites and sells property and casualty insurance policies to foreign
customers.
This situation, in which a bank holding company becomes the producer of the service to be
exported, would be inconsistent with an export
trading company's role as a facilitator of exports.
The regulations, however, permit formation of a
joint venture with an insurance company to
facilitate the sale of the insurance company's
policies abroad. Therefore, there is a broad
scope in the statute and the regulation for a bankaffiliated export trading company to provide
services in support of exports.
Some of the legislative proposals have implicitly taken issue with the Board's regulation requiring that 50 percent of an export trading
company's business derive from exports or facilitating exports produced by others. This is also
the area of current regulation in which the most
flexibility is sought by the surveyed bank-affiliated export trading companies, that is, in the
application of the 50 percent of revenues test.
These legislative proposals would alter the
original intent of the statute in a fundamental
way. The original bill was intended to promote
exports and build an export-oriented infrastructure of trading companies. Some of the proposed
legislation would not seem to further those goals.
First, these proposals would permit an export
trading company to count as export revenues any
revenues derived from third-country trade. The
rationale is that the export trading company itself
is providing a service and that the trade activity
of the third country does not hurt U.S. trade
344
Federal Reserve Bulletin • May 1987
balances because it does not involve an import.
Our view is that such proposals sanction the
development of bank-affiliated trading companies that need not facilitate the export of any
product produced in the United States at all.
These proposals would permit a trading company
to set up foreign companies to provide a broad
range of services to foreign parties without any
benefit either to U.S. jobs or toward developing
an export trading industry that can serve companies that actually produce goods and services in
the United States. This approach would create a
movement in the opposite direction from providing export trade services to those U.S. companies that need assistance in exporting.
Moreover, it is not readily apparent that, as
many claim, third-country trade would not harm
U.S. trade. If a foreign country is buying computers from Germany, it is not buying them from
the United States. Third-country trade therefore
can hurt U.S. exports because many third-country transactions are substitutions for U.S. exports.
In addition, by permitting bank holding companies to invest in any company, regardless of its
business, as long as it offers its services exclusively to foreign customers, the proposed legislation would put bank holding companies into
direct competition with other U.S. companies
that are intended to be the primary beneficiaries
of the original act, that is, companies that produce in the United States, goods and services
which, with the help of an export trading company, could be exported. Such a result seems
perverse in two ways. First, it reduces any
incentive on the part of bank-affiliated export
trading companies to market their trade services
to U.S. companies. Under the proposals, if a
bank holding company were to identify potential
projects or markets abroad, it could establish a
trading company to take on the project or service, rather than approach U.S. companies either to form a joint venture to take advantage of
the opportunity or to otherwise assist the U.S.
company in exporting its service.
Second, the proposals would expand the kinds
of activities in which a bank holding company
may engage indirectly through an export trading
company. There is already a statutory and regulatory framework for the expansion of the operations of bank holding companies and Edge corpo
rations outside the United States that provides
considerable flexibility in both activities and
investments. For example, in some instances,
U.S. banking organizations have been permitted
to establish foreign companies that underwrite
and sell life insurance. This has been done,
however, under statutes that allow the Federal
Reserve to consider fully the effect on banks and
the banking system, taking into account factors
not applicable to the BESA. A radical change in
the authority to conduct activities overseas, such
as the proposals would provide, should be dealt
with straightforwardly as a question of new products and services for banking organizations. The
Board strongly supports authorization of some
new products and services for bank holding
companies but believes that they should be
granted in a direct fashion, and not through trade
legislation, especially when there would be no
benefit to U.S. exports generally.
Although these proposals would shift the emphasis of the original statute from export promotion to promotion of international trade per se by
permitting bank holding companies to engage in
general trading activities without regard to promoting U.S. exports, this is of course a matter
for the Congress to decide. The Board's regulations requiring a predominance of exports are,
however, fully consistent with the intent of the
Congress at the time of passage of the BESA.
With respect to the ability of a bank to finance
its affiliated export trading company, the BESA
subjects a bank's extension of credit to an affiliated export trading company to the provisions of
section 23A of the Federal Reserve Act. As you
know, section 23A requires collateralization for
any extension of credit by a bank to an affiliate,
usually in an amount that exceeds the face
amount of the extension of credit. This is entirely
appropriate to protect the bank. However, in
recognition of the need for a bank-affiliated export trading company to secure funding for its
trading in goods, the Board has provided a
reasonable exception by waiving the excess collateral requirement for loans by a bank to its
affiliated export trading company. The regulations require instead that the bank take a security
interest in goods or the proceeds from the sale of
goods that are subject to a contract of sale. This
measure enables an export trading company to
obtain financing for the activity for which financ-
Statements
ing is most needed, but the exception does noi
subject the bank to undue risk.
This liberalization of the collateral requirements of section 23A is the type of carefully
crafted exception to the provisions of section
23A that we believe is most appropriate in this
context. It is tailored to the needs of an export
trading company but ensures that the assets of
the bank will not be jeopardized.
The Board also expects a bank-affiliated export trading company to be capitalized adequately to support its operations. There is no regulatory requirement, however, for a certain capital
level. Each case is evaluated based on its own
facts.
Some of the proposed amendments to the
BESA that relate to section 23A and to capital
requirements raise substantial supervisory concerns. The proposals would expand the ability of
a bank-affiliated export trading company to take
on the equity risk of foreign subsidiaries, clearly
increasing the risk to which the export trading
company is subject. At the same time, the proposals would reduce the safeguards for the affiliated bank, by exempting all transactions from
the collateral requirements of section 23A and by
permitting an export trading company to be less
than adequately capitalized.
These changes would seem to be especially
inappropriate at this time when there is a consensus that bank affiliates should be subject to
market discipline. An affiliate should not be able
to use a bank's resources—and the federal guarantee for those resources—except to the extent
permitted by the provisions of section 23A. As
the Board has consistently stated, if a bankaffiliated export trading company is creditworthy, it can obtain credit in the market even from a
nonaffiliate. If an export trading company is not
creditworthy, an affiliated bank should not be
placed at risk by being able to lend without
collateral. Moreover, a total elimination of the
collateral requirements of section 23A is directly
contrary to the approach taken in other recent
legislative proposals, which would actually
strengthen the protection available to the bank.
As I have previously stated, the Board has
been willing to be flexible in its approach to
section 23A as it applies to loans to bank-affiliated export trading companies but only when the
bank will not be adversely affected. We cannot
to Congress
345
support any proposal that would permit a nonbank affiliate to drain the resources of the bank in
pursuit of its business.
With respect to capitalization, some of the
legislative proposals would permit an export
trading company to operate with a capital-toassets ratio of 4 percent. That ratio would be low
for most trading companies; such ratios are typically at least 25 percent for trading companies
that are not affiliated with banks. The proposed
ratio is even lower than the capital required of a
bank. We see no justification for reducing the
Board's ability to require that a bank holding
company subsidiary be adequately capitalized in
relation to its business. Having said this, it
should be noted that when the proposed activities of a bank-affiliated export trading company
have risk characteristics similar to those of a
bank, the Board has determined that the export
trading company may maintain a capital ratio
equivalent to that required of a bank.
Such a proposal permitting a low capital-toassets ratio would also be contrary to prudent
supervisory policies as reflected in recent efforts,
including those of the Congress in passing the
International Lending Supervision Act of 1983,
to increase capital of banking organizations involved in international activities. Moreover, it
would remove bank-affiliated export trading
companies from the market restrictions imposed
on other companies not affiliated with banks,
thereby encouraging increased risk-taking with
its concomitant risk to the banking organization.
A bank can be harmed not only by direct interaction with an affiliate but also by a weakening of
the bank holding company's ability to serve as a
source of strength to its subsidiary banks.
Besides the supervisory questions raised by
these proposals on section 23A and capital adequacy, the proposals raise a serious issue of
competitive equity. These proposals place bankaffiliated export trading companies in a favored
position over all other competitors by removing
them from the effects of market discipline. A
bank-affiliated export trading company would
have a ready source of financing, even if the
company is not creditworthy, and could undertake a higher volume of activities because of its
low capitalization. This situation would be entirely inconsistent with the concept of a level
playing field.
346
Federal Reserve Bulletin • May 1987
In light of these factors, the Board must oppose any proposals that would increase the risk
to the bank from the operation of the affiliated
export trading company. Such export trading
companies should be permitted to operate with
sufficient flexibility to allow them to succeed but
within appropriate constraints on their ability to
harm their affiliated banks. We believe that the
current statutory and regulatory framework
achieves these goals. The recent past did not
provide circumstances for the best test of the
current framework. Changing economic conditions should make it easier for these export
trading companies to operate more successfully
in the next few years.
While we believe that the foregoing is a realis-
tic assessment of both the current law and the
proposals that have been introduced into the
Congress, the Federal Reserve is, as always,
willing to work with the Congress in developing
necessary legislative reforms. We urge you,
however, to keep in mind that some of the
proposals raise serious supervisory concerns.
Others are aimed at changing the purposes of
bank-affiliated export trading companies from an
export orientation to encouraging trade outside
the United States or even U.S. imports. In the
final analysis, of course, the goals for any new
legislation are established by the Congress, and
the Board always endeavors to adopt implementing regulations that reflect those goals.
•
Vice Chairman Johnson presented identical testimony before the subcommittee on International
Finance and Monetary Policy of the Senate
Committee on Banking, Housing,
Affairs, March 25, 1987.
and
Urban
347
Announcements
REDEPOSIT
SERVICE
APPROVED
The Federal Reserve Board approved on March
30, 1987, a proposal to allow Federal Reserve
Banks to offer a redeposit service for low-dollar
checks that have been returned unpaid.
Beginning in July 1984, the Reserve Banks
conducted several pilot programs to test the
feasibility of reclearing low-dollar return items.
The dollar cutoffs used to select the recleared
checks eligible for the test programs ranged from
$100 to $900. Based on encouraging results from
the pilot programs and requests from the banking
industry, in November 1986 the Board issued for
public comment a proposal to adopt this program
Systemwide on an optional basis.
The Reserve Banks may now offer this service
to financial institutions that send checks to the
Bank for collection (sender). In addition, the
Reserve Banks may add other features to the
basic service. For example, the sender may (1)
select its own dollar cutoff for eligible returns, (2)
specify eligible returns by account number rather
than by having a blanket redeposit policy, or (3)
designate the redeposit service for local area
checks only.
If Reserve Banks opt to provide this service,
they will use a two-part fee structure. The fee
structure will include a fixed daily fee for reclearing items up to a specified volume and a per-item
fee for any additional volume.
The Board's action also allows the Director of
the Board's Division of Federal Reserve Bank
Operations to approve additional service features under delegated authority.
REDUCTIONS
IN THE FEE
STRUCTURE
FOR BOOK-ENTRY
SECURITIES
The Federal Reserve Board has approved the
following reductions in portions of the fee structure for the federal agency book-entry securities
service, effective May 1:
• Originating an on-line securities transfer is
reduced from $3.00 to $2.25. (This also replaces
the graduated on-line origination fee of $1.00$5.00 that was effective only at the Federal
Reserve Bank of New York.)
• Originating or receiving an off-line securities
transfer is reduced from $10.00 to $7.00.
• The per-issue-per-account maintenance fee is
reduced from $.50 per issue to $.45.
REVISIONS
TO MONEY
STOCK
DATA
Measures of the money stock were revised in
February of this year to include changes in
annual benchmarks and seasonal factors. Data in
tables 1.10 and 1.21 in the statistical appendix to
the B U L L E T I N reflected these changes beginning
with the issue for April 1987.
Deposits were benchmarked to recent call
reports and incorporated revisions to the data.
Changes in seasonal factors were based on the
X-11-ARIMA procedure used in recent years.
Unlike past years, however, seasonally adjusted
Ml is now constructed by summing travelers
checks, currency, demand deposits, and other
checkable deposits (OCDs), each seasonally
adjusted separately. Owing to data limitations,
seasonally adjusted OCDs previously had been
derived indirectly as the difference between seasonally adjusted transactions deposits (demand
deposits plus OCDs) and seasonally adjusted
demand deposits. M2 continues to be calculated
by seasonally adjusting its non-Mi component as
a whole, and M3 by adjusting its non-M2 component as a whole.
More detail on the revisions is available in the
H.6 release, "Money Stock, Liquid Assets and
Debt Measures" for February 12, 1987. Historical data are available from the Banking Section,
Division of Research and Statistics, Board of
Governors of the Federal Reserve System,
Washington, D.C. 20551.
348
Federal Reserve Bulletin • May 1987
1. Monthly seasonal factors used to construct Ml, M2 and M3, January 1986-March 1988
Year and month
Currency
Nonbank
travelers
checks
Demand
deposits
Nontransactions
components
Other
checkable
deposits
in M2
in M3 only
1986—January
February
March
April
May
June
July
August
September
October
November
December
.9924
.9875
.9909
.9952
.9997
1.0040
1.0088
1.0049
.9989
.9984
1.0048
1.0147
.9275
.9356
.9433
.9490
.9685
1.0466
1.1381
1.1366
1.0723
1.0057
.9521
.9276
1.0197
.9714
.9747
1.0063
.9831
1.0042
1.0080
.9940
.9970
.9986
1.0078
1.0361
1.0105
.9896
.9981
1.0270
.9895
1.0004
.9954
.9915
.9943
.9916
1.0007
1.0117
1.0016
1.0012
1.0025
1.0009
.9988
.9994
1.0014
.9996
.9973
.9995
.9996
.9987
1.0001
1.0017
1.0039
.9986
1.0016
.9954
.9905
.9972
1.0026
1.0001
1.0030
1.0025
1987—January
February
March
April
May
June
July
August
September
October
November
December
.9923
.9876
.9909
.9951
.9996
1.0039
1.0088
1.0051
.9990
.9985
1.0048
1.0148
.9261
.9341
.9423
.9482
.9676
1.0464
1.1395
1.1389
1.0730
1.0058
.9515
.9270
1.0193
.9707
.9741
1.0060
.9832
1.0047
1.0083
.9946
.9973
.9981
1.0078
1.0363
1.0114
.9894
.9973
1.0266
.9890
1.0003
.9954
.9921
.9947
.9915
1.0008
1.0120
1.0017
1.0010
1.0021
1.0007
.9986
.9993
1.0015
.9999
.9975
.9995
.9996
.9988
1.0008
1.0032
1.0048
.9992
1.0018
.9955
.9900
.9966
1.0026
.9996
1.0025
1.0018
.9921
.9876
.9909
.9255
.9333
.9422
1.0191
.9703
.9739
1.0116
.9892
.9967
1.0016
1.0009
1.0018
1.0014
1.0042
1.0053
1988—January
February
March
2. Monthly seasonal factors for selected components of the monetary aggregates, January 1986-March 1988
Commercial bank deposits
Year and month
Savings
Small
denomination
time
Large
denomination
time
Savings
Small
denomination
time
Large
denomination
time
.9994
.9985
.9980
.9941
.9956
.9986
1.0003
.9959
1.0007
1.0018
1.0029
1.0050
1.0072
.9923
.9916
1.0006
1.0032
.9999
1.0064
1.0047
.9998
.9964
.9929
.9940
.9991
.9986
.9987
1.0029
1.0032
1.0022
1.0039
1.0067
1.0040
1.0047
1.0033
1.0022
.9991
1.0027
1.0047
1.0067
.9907
.9954
.9908
.9905
.9991
1.0048
1.0041
1.0026
1.0049
1.0040
1.0072
1.0079
.9912
.9954
.9902
.9895
.9979
1.0040
1.0040
1.0025
1.0045
1.0011
.9958
.9996
1.0007
1.0025
1.0048
1.0072
.9924
.9914
1.0006
1.0038
1.0005
1.0064
1.0051
1.0005
.9967
.9932
.9943
.9992
.9984
.9985
1.0025
1.0027
1.0021
1.0024
1.0054
1.0003
.9952
1.0049
1.0088
1.0083
1.0015
.9958
.9989
1.0064
1.0053
1.0010
1986—January . . .
February..
March . . . .
April
May
June
July
August....
September
October...
November.
December.
.9962
.9910
.9949
1.0003
1.0027
1.0070
1.0102
1.0009
.9990
1.0042
1.0006
.9956
1987—January . . .
February..
March . . . .
April
May
June
July
August....
September
October...
November.
December.
.9965
.9902
.9935
.9991
1.0020
1.0067
1.0103
.9995
1.0048
1.0013
.9959
.9992
.9988
.9990
.9947
.9959
.9989
1.0013
1.0038
1.0046
1.0028
1.0016
.9987
1988—January . . .
February..
March . . . .
.9966
.9899
.9928
.9992
.9992
.9997
1.0011
Thrift institution deposits
1.0011
Experimental (model-based) factors for M l
Currency
Nonbank
travelers
checks
Demand
deposits
Other
checkable
deposits
.9947
.9884
.9917
.9962
.9997
.0031
.0093
.0052
.9984
.9997
.0067
.0171
.9275
.9356
.9433
.9490
.9685
1.0466
1.1381
1.1366
1.0723
1.0057
.9521
.9276
1.0024
.9732
.9778
1.0121
.9834
.9999
1.0052
.9923
.9989
1.0032
1.0100
1.0365
1.0175
.9925
.9987
1.0435
.9949
1.0015
.9995
.9892
.9941
.9912
.9988
1.0103
.9975
.9957
1.0007
1.0024
1.0026
1.0003
.9974
.9942
.9883
.9913
.9969
.9994
.0036
.0088
.0042
.9999
.9993
.0070
.0172
.9261
.9341
.9423
.9482
.9676
1.0464
1.1395
1.1389
1.0730
1.0058
.9515
.9270
1.0218
.9736
.9769
1.0140
.9829
.9997
1.0055
.9908
1.0000
1.0032
1.0090
1.0361
1.0166
.9925
1.0004
1.0421
.9941
1.0032
.9983
.9892
.9951
.9903
.9987
1.0109
1.0019
1.0047
1.0010
.9939
.9879
.9926
.9255
.9333
.9422
1.0215
.9727
.9798
1.0158
.9922
1.0029
1.0000
.9945
.9984
.9964
.9949
1.0005
1.0029
1.0028
1.0010
.9977
1.0000
Announcements
349
3. Weekly seasonal factors for selected components of the monetary aggregates, December 1986—March 1988
Commercial bank deposits
Week ending
Currency
Demand
deposits
Other
checkable
deposits
Savings
Small
denomination
time
Large
denomination
time
1986—December
1
8
15
22
29
1.0059
1.0136
1.0120
1.0196
1.0183
1.0146
1.0182
1.0173
1.0236
1.0399
.9925
1.0277
1.0137
1.0058
.9966
.9987
1.0008
.9978
.9931
.9895
1.0007
.9998
.9985
.9979
.9998
1.0033
1.0028
1.0042
1.0039
1.0091
1987—January
5
12
19
26
1.0078
1.0011
.9920
.9826
1.0987
1.0507
1.0240
.9846
1.0386
1.0368
1.0167
.9840
.9972
1.0005
.9973
.9948
1.0000
.9996
.9997
.9986
1.0066
1.0035
1.0016
1.0041
February
2
9
16
23
.9808
.9937
.9930
.9827
.9786
.9855
.9706
.9597
.9807
1.0063
.9882
.9797
.9914
.9922
.9904
.9890
.9980
.9993
.9991
.9985
1.0054
1.0070
1.0069
1.0074
March
2
9
16
23
30
.9821
.9958
.9923
.9886
.9875
.9656
.9821
.9788
.9586
.9650
.9856
1.0115
.9973
.9869
.9877
.9885
.9921
.9935
.9940
.9944
.9984
.9993
.9990
.9990
.9992
1.0083
1.0090
1.0068
1.0083
1.0085
April
6
13
20
27
1.0012
1.0007
.9955
.9883
1.0159
1.0166
1.0181
.9841
1.0381
1.0460
1.0450
.9965
1.0020
1.0021
.9969
.9961
.9966
.9928
.9954
.9941
.9997
.9935
.9866
.9877
May
4
11
18
25
.9955
1.0029
.9974
.9968
.9997
.9891
.9897
.9543
1.0071
.9977
.9839
.9713
.9987
1.0015
1.0027
1.0031
.9946
.9954
.9959
.9965
.9880
.9915
.9946
1.0007
June
1
8
15
22
29
.9963
1.0116
1.0074
1.0022
.9990
.9915
1.0201
1.0154
.9874
.9918
.9856
1.0225
1.0161
.9876
.9757
1.0024
1.0074
1.0083
1.0049
1.0058
.9969
.9991
.9991
.9986
.9986
.9996
.9935
.9903
.9854
.9905
July
6
13
20
27
1.0198
1.0115
1.0064
.9994
1.0353
1.0279
1.0072
.9782
1.0159
1.0122
.9921
.9734
1.0123
1.0144
1.0117
1.0068
1.0013
1.0014
1.0013
1.0010
.9881
.9856
.9886
.9933
August
3
10
17
24
31
1.0052
1.0138
1.0071
.9994
.9956
.9902
1.0070
1.0071
.9775
.9814
.9851
1.0080
.9937
.9792
.9829
1.0042
1.0041
1.0019
.9996
.9976
1.0019
1.0031
1.0040
1.0043
1.0048
.9933
.9947
.9965
.9995
1.0030
September 7
14
21
28
1.0108
1.0040
.9976
.9895
1.0159
1.0154
.9836
.9734
1.0200
1.0152
.9868
.9635
1.0005
1.0007
.9987
.9968
1.0063
1.0048
1.0045
1.0031
1.0025
1.0011
1.0032
1.0082
October
5
12
19
26
.9998
1.0056
.9981
.9914
1.0161
1.0027
1.0084
.9755
1.0000
1.0020
.9956
.9744
1.0039
1.0078
1.0057
1.0035
1.0036
1.0041
1.0026
1.0015
1.0075
1.0062
1.0024
1.0026
November
2
9
16
23
30
.9923
1.0078
1.0048
1.0007
1.0071
.9953
1.0101
1.0159
.9873
1.0141
.9835
1.0137
1.0057
.9870
.9966
1.0021
1.0038
1.0027
1.0011
.9976
1.0021
1.0032
1.0017
1.0008
1.0003
1.0012
1.0019
1.0013
1.0036
1.0036
December
7
14
21
28
1.0145
1.0124
1.0179
1.0204
1.0229
1.0281
1.0348
1.0446
1.0256
1.0165
1.0084
.9989
.9984
.9974
.9954
.9921
1.0000
.9989
.9978
.9977
1.0018
1.0039
1.0029
1.0083
350
Federal Reserve Bulletin • May 1987
3. Continued
Commercial bank deposits
Week ending
1988—January
Currency
Demand
deposits
Other
checkable
deposits
Savings
Small
denomination
time
Large
denomination
time
4
11
18
25
1.0073
1.0022
.9923
.9834
1.0949
1.0513
1.0225
.9788
1.0257
1.0463
1.0209
.9846
.9974
1.0005
.9980
.9953
.9992
.9992
.9998
.9992
1.0071
1.0043
1.0025
1.0049
February
1
8
15
22
29
.9794
.9925
.9930
.9827
.9813
.9707
.9825
.9691
.9595
.9628
.9799
1.0053
.9878
.9793
.9817
.9915
.9931
.9910
.9897
.9855
.9984
.9994
.9994
.9993
.9987
1.0068
1.0085
1.0088
1.0087
1.0094
March
7
14
21
28
.9967
.9941
.9906
.9857
.9844
.9834
.9666
.9590
1.0119
.9985
.9875
.9849
.9890
.9910
.9925
.9947
.9997
.9997
1.0000
.9998
1.0095
1.0076
1.0079
1.0104
4
.9976
1.0121
1.0314
1.0016
.9981
1.0030
April
CHANGES IN OFFICIAL
STAFF
COMMENTARIES
ON
REGULATIONS
B, E, AND Z
The Federal Reserve Board adopted on April 1,
1987, final changes to the official staff commentaries to its Regulations B (Equal Credit Opportunity), E (Electronic Fund Transfers), and Z
(Truth in Lending).
The major changes to the official staff commentary on Regulation B pertain to notification
regarding denial of an incomplete application and
data collection requirements for monitoring purposes.
The revisions to the official staff commentary
on Regulation E address systems for paying
government benefits by means of electronic terminals; coverage of dividend or interest payments on securities; restrictions on payments to
third parties from money market deposit accounts; and the practice of including promotional
material on automatic-teller-machine or point-ofsale receipts.
The update to the official staff commentary on
Regulation Z clarifies provisions affecting disclosures for refinancing transactions and the right of
rescission. In addition, the update clarifies the
exception from the finance charge for participation or membership fees and the prohibition
against offsetting a consumer's credit card indebtedness with funds from a deposit account
held with a credit card issuer.
PROPOSED
ACTION
The Federal Reserve Board has requested comment on a proposal to incorporate credit risks on
off-balance-sheet interest rate and exchange rate
contracts (including interest rate swaps) into its
proposed risk-based capital measure. This proposal has been developed jointly with the Bank
of England and is designed to be consistent with
treatment of other off-balance-sheet credit exposures in the overall U . S . - U . K . agreement on
primary capital and the assessment of capital
adequacy, which was announced earlier this
year. Comments on this proposal should be
received by May 22, 1987.
SYSTEM
MEMBERSHIP-.
ADMISSION OF STATE
BANKS
The following banks were admitted to membership in the Federal Reserve System during the
period March 1 through March 31, 1987:
Alabama
Falkville
Morgan County
N e w Hope
Madison County
Florida
North Miami Beach
Equitable
Pensacola
American Bank &
Virginia
Kenbridge
Lunenburg County
Bank
Bank
Bank
Trust
Bank
351
Legal Developments
ORDER
In 1976, the Board granted state-chartered depository
institutions subject to the New York mortgage disclosure law an exemption from the federal Home Mortgage Disclosure Act based on a determination that the
state law and regulations (Supervisory Procedure
G107) provided for substantially similar disclosures
and adequately provided for enforcement. The Board
has learned that Supervisory Procedure G107 has
expired and was not renewed by the New York State
Banking Department; therefore, effective March 31,
1987, the Board hereby formally terminates the New
York exemption, as follows:
The Board granted an exemption to New York-chartered
depository institutions from the federal Home Mortgage
Disclosure Act in 1976 based on the existence of substantially similar requirements imposed by state law. The
exemption was supplemented by an order in 1977 and
renewed in 1982 following changes in the federal act and
regulation and corresponding changes in the state law.
Because the New York State Banking Department's
Supervisory Procedure G107 has expired, there is no
longer a state law basis for the New York exemption.
The Board is therefore terminating the New York exemption. New York-chartered depository institutions
previously exempted from the federal law shall comply
with the federal act and regulation, beginning with the
data required by the act and Regulation C for loans
originated or purchased in calendar year 1986.
ORDERS ISSUED UNDER BANK
HOLDING
COMPANY ACT, BANK MERGER ACT, BANK
SERVICE CORPORATION ACT, AND FEDERAL
RESERVE ACT
Orders Issued Under Section 3 of the Bank
Holding Company Act
AmSouth Bancorporation
Birmingham, Alabama
section 3 of the Act to acquire the successor by merger
to First Tuskaloosa Corporation, Tuscaloosa, Alabama ("Company"), and thereby indirectly to acquire
The First National Bank of Tuskaloosa, Tuscaloosa,
Alabama ("Bank").
Notice of the application, affording an opportunity
for interested persons to submit comments, has been
given in accordance with section 3(b) of the Act (51
Federal Register 40,515 (1986)). The time for filing
comments has expired, and the Board has considered
the application and all comments received in light of
the factors set forth in section 3(c) of the Act
(12 U.S.C. § 1842(c)).
Applicant, the largest commercial banking organization in Alabama, controls two subsidiary banks with
total deposits of $3.7 billion, representing approximately 18.1 percent of the total deposits in commercial
banks in the state. 1 Bank is the sixth largest commercial banking organization in the state, with total deposits of $295.6 million, representing 1.4 percent of the
total deposits in commercial banks in the state. Upon
consummation of the proposed transaction, Applicant
would remain the largest banking organization in Alabama, with total deposits of $4.0 billion, representing
19.5 percent of the total deposits in commercial banks
in the state. The Board does not believe consummation of this proposal would have any significant effect
on the concentration of banking resources in Alabama.
Both Applicant and Bank compete directly in the
Tuscaloosa banking market. 2 Applicant operates two
branches in the market and is the smallest of the six
commercial banking organizations operating in the
market. Applicant controls total deposits of $13.3
million, representing 2.5 percent of the deposits in
commercial banks in the market. Bank is the largest
commercial banking organization in the market, with
total deposits of $277.2 million, representing 52.7
percent of the deposits in commercial banks in the
market. Upon consummation of the proposal, Applicant's share of the deposits in commercial banks in the
Order Approving Acquisition of a Bank Holding
Company
AmSouth Bancorporation, Birmingham, Alabama, a
bank holding company within the meaning of the Bank
Holding Company Act (12 U.S.C. § 1841 et seq.
("Act")), has applied for the Board's approval under
1. State deposit data are as of December 31, 1985. Market data are
as of June 30, 1985.
2. The Tuscaloosa banking market is approximated by Tuscaloosa
County, Alabama.
352
Federal Reserve Bulletin • May 1987
market would increase to 55.2 percent. The Tuscaloosa banking market is considered to be highly concentrated, with the four largest commercial banks controlling 97 percent of the deposits in commercial banks in
the market. The Herfindahl-Hirschman Index
("HHI") for the market is 4,046 and would increase by
265 points to 4311 upon consummation of the proposal. 3
In reviewing the effect of this proposal on existing
competition in the Tuscaloosa market, the Board has
considered in particular Applicant's small absolute
and relative size in the market and the modest increase
in market concentration in the context of the market's
overall competitive structure. As noted, Applicant is
the smallest depository institution in the market, controlling only 2.5 percent of deposits in commercial
banking organizations in the market. In this regard, the
Board has considered that since Applicant entered the
market in 1976, its market share has remained unchanged, despite a substantial increase in the market's
deposits. Moreover, four other commercial banking
organizations would remain as competitors in the
market upon consummation. These include the largest
banking organizations in the state, which have the
financial and managerial resources to compete effectively in the market.
The Board also notes that Alabama's largest and
second largest thrift institutions with large branch
networks in numerous Alabama markets, have a significant competitive presence in the Tuscaloosa market. They, together with another thrift institution,
control approximately 37 percent of the market's total
deposits. 4 These thrift institutions exert a considerable
competitive influence in the market as providers of
NOW accounts and commercial and consumer loans.
In the Board's view, the competition afforded by these
thrift institutions is a substantial mitigating factor in
this case. 5 Finally, the Board notes that there are a
number of credit unions, offices of large national
consumer and commercial finance companies, as well
as offices of other non-depository providers of financial services in the Tuscaloosa market, that offer a
broad range of competitive services.
Based upon the above considerations, the Board
concludes that consummation of the proposal is not
likely substantially to lessen competition in the Tuscaloosa banking market.
The financial and managerial resources of Applicant, its subsidiary banks, and Bank are consistent
with approval. Considerations relating to the convenience and needs of the communities to be served are
also consistent with approval, especially in light of
Applicant's willingness to increase its efforts to better
ascertain and meet the credit needs of the communities
it serves. Based on the foregoing and other facts of
record, the Board has determined that consummation
of the proposed transaction would be in the public
interest and that the application should be approved.
On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be consummated before the thirtieth
calendar day following the effective date of this Order,
or later than three months after the effective date of
this Order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
Atlanta pursuant to delegated authority.
By order of the Board of Governors, effective
March 17, 1987.
3. Under the revised Department of Justice Merger Guidelines (49
Federal Register 26,823 (June 29, 1984)), a market in which the postmerger HHI is above 1800 is considered highly concentrated. In such
markets, the Department is likely to challenge a merger that increases
the HHI by more than 50 points. The Department has informed the
Board that a bank merger or acquisition generally will not be challenged (in the absence of other factors indicating anticompetitive
effects) unless the post-merger HHI is at least 1800 and the merger
increases the HHI by at least 200 points. The Justice Department has
stated that the higher than normal HHI thresholds for screening bank
mergers for anticompetitive effects implicitly recognizes the competitive effect of limited-purpose lenders and other non-depository financial entities. The Department of Justice has informed the Board that it
will not challenge this acquisition.
4. The Board has previously indicated that thrift institutions have
become, or have the potential to become, major competitors of
commercial banks. National City Corporation, 70 FEDERAL RESERVE
Dissenting Statement of Chairman Volcker and
Governor Angell
B U L L E T I N 7 4 3 ( 1 9 8 4 ) ; NCNB
Bancorporation,
7 0 FEDERAL RESERVE
BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL
RESERVE BULLETIN 802 (1983); First Tennessee National
Corporation,
6 9 F E D E R A L RESERVE B U L L E T I N 2 9 8 ( 1 9 8 3 ) .
Voting for this action: Governors Johnson, Seger, and
Heller. Voting against this action: Chariman Volcker and
Governor Angell.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
We would also approve the proposed acquisition by
AmSouth of First Tuskaloosa, but unlike the majority
of the Board, we would require AmSouth, as a condition of approval, to divest an office or offices equiva-
5. If 50 percent of deposits held by thrift institutions in the
Tuscaloosa banking market were included in the calculation of market
concentration, the share of total deposits held by the four largest
organizations in the market would be 94.4 percent. Applicant would
control 2.0 percent of the market's deposits and Bank would control
40.8 percent of the market's deposits. The HHI would increase by 159
points to 2833.
Legal Developments
lent to its current position in the market. We would do
so because, in our view, given the already highly
concentrated nature of the Tuscaloosa banking market, the proposal without a divestiture would unduly
reduce the competitive forces at work in the area.
We agree with the majority that the increase in
concentration in the market consequent upon the
merger is small. The question posed, however, is
whether, in a market already so highly concentrated, a
merger involving the dominant bank in the market with
another viable competitor should be approved without
a divestiture designed to maintain existing competitive
options. In this case of a highly concentrated market,
we believe that an acquisition that will eliminate an
effective and forceful competitor from the market and
further concentrate the market share of the dominant
institution in that market should not go forward.
March 17, 1987
Associated Banc-Corp
Green Bay, Wisconsin
Order Approving Acquisition of a Bank
Associated Banc-Corp, Green Bay, Wisconsin, a bank
holding company within the meaning of the Bank
Holding Company Act (12 U.S.C. § 1841 et seq.)
("Act"), has applied for the Board's approval under
section 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to
acquire Chicago Commerce Bancorporation ("Commerce") and indirectly to acquire Chicago Bank of
Commerce, both of Chicago, Illinois.
Notice of the application, affording an opportunity
for interested persons to submit comments, has been
given in accordance with section 3(b) of the Act. The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the Act (12 U.S.C. § 1842(c)).
Applicant, the sixth largest commercial banking
organization in the state of Wisconsin, controls 10
subsidiary banks with total deposits of $1.03 billion,
representing 3.3 percent of total deposits in commercial banking institutions in the state of Wisconsin.1
Bank is the 124th largest commercial banking organization in the state of Illinois, controlling total deposits
of $116.9 million, representing 0.11 percent of total
deposits in commercial banking organizations in the
state of Illinois. Consummation of this proposal would
not have an adverse effect upon concentration of
banking resources in Illinois or Wisconsin.
1. All banking data are as of December 31, 1987.
353
Applicant's proposal is the first acquisition by a
Wisconsin bank holding company of an Illinois bank
holding company or bank. Section 3(d) of the Act
(12 U.S.C. § 1842(d)), the Douglas Amendment, prohibits the Board from approving the application by a
bank holding company to acquire control of any bank
located outside of the holding company's home state,
unless such acquisition is "specifically authorized by
the statute laws of the state in which such bank is
located, by language to that effect and not merely by
implication." Applicant's home state is Wisconsin.
The statute laws of Illinois authorize the acquisition
of an Illinois bank or bank holding company by a bank
holding company located in Wisconsin, if the laws of
Wisconsin permit the acquisition of a bank in that state
by an Illinois bank holding company. 2 The Illinois
statute also requires that the Illinois Commissioner of
Banks and Trust Companies ("Commissioner") make
a determination that the Wisconsin statute is substantially reciprocal, in that it permits entry by Illinois
bank holding companies under conditions that are
substantially similar to those imposed for entry by outof-state banking organizations by Illinois.3 Wisconsin
has enacted a statute that permits the acquisition of a
Wisconsin bank by a bank holding company located in
Illinois.4 The Illinois Commissioner has approved this
acquisition, stating in his order that the Wisconsin
statute satisfies the requirements of Illinois law for
reciprocity regarding interstate banking acquisitions in
Illinois.
Based on its review of the relevant Illinois and
Wisconsin statutes, the Board has concluded that the
two statutes are reciprocal and that Illinois has, by
statute, expressly authorized a Wisconsin bank holding company, such as Applicant, to acquire an Illinois
bank holding company, such as Commerce. Accordingly, the Board is not prohibited by the Douglas
Amendment from approving the application.
Applicant does not provide banking services in the
Chicago banking market, where Commerce operates,
and approval of consummation of this proposed acquisition would have no significant adverse affect on
existing competition in any relevant banking market.
The Board also examined the effects of this proposal
on probable future competition in the relevant geographic markets and has concluded that consummation of this proposal would not have any significant
adverse effects on probable future competition in any
relevant market.
2. 111. Rev. Stat., Ch. 17, par. 2502, et seq. (1986).
3. Wis. Stat. § 221.58, et seq. (1986).
4. 111. Rev. Stat., Ch. 17, par. 2510 (1986).
354
Federal Reserve Bulletin • May 1987
In evaluating this application, the Board has considered the financial and managerial resources of Applicant, its subsidiary banks and Commerce. The Board
has stated and continues to believe that capital adequacy is an especially important factor in the analysis
of bank holding company expansion proposals. While
Applicant's existing capital ratios are above the minimum levels specified in the Board's Capital Adequacy
Guidelines5 and will remain so after consummation of
this proposal, the Board is concerned that consummation of the proposed transaction will result in a decline
in Applicant's capital ratios. It appears from the
record, however, that Applicant is capable of improving its capital ratios, and Applicant has submitted a
capital plan that will restore capital to existing levels
within one year.
Based on these facts, the Board concludes that
financial and managerial resources and future prospects of Applicant, Commerce and their subsidiary
banks are consistent with approval. Considerations
relating to the convenience and needs of the communities to be served also are consistent with approval of
the proposal.
Based upon the foregoing and other facts of record,
the Board has determined that the proposed acquisition is in the public interest and that the application
should be, and hereby is, approved. The acquisition
shall not be consummated before the thirtieth calendar
day following the effective date of this Order, or later
than three months after the effective date of this
Order, unless the latter period is extended for good
cause by the Board or the Federal Reserve Bank of
Chicago, acting pursuant to delegated authority.
By order of the Board of Governors, effective
March 25, 1987.
Voting for this action: Chairman Volcker and Governors
Seger, Angell, and Heller. Absent and not voting: Governor
Johnson.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
First Essex Bancorp, Inc.
Lawrence, Massachusetts
12 U.S.C. § 1841 et seq., to become a bank holding
company by acquiring 100 percent of the voting shares
of First Essex Savings Bank, Lawrence, Massachusetts ("Bank"), and thereby indirectly to acquire 100
percent of the voting shares of Bank's wholly owned
subsidiaries, 1848 Corporation, Inc., Empire Securities, Inc., and Prime Mortgage Co., Inc., which are
engaged in certain service activities for Bank. Bank, a
state-chartered mutual savings bank, the accounts of
which are insured by the Federal Deposit Insurance
Corporation ("FDIC"), will convert to a state-chartered stock savings bank insured by the FDIC.
Notice of the application, affording interested persons an opportunity to submit comments, has been
given in accordance with section 3(b) of the Act, 51
Federal Register 44,946 (1986). The time for filing
comments has expired, and the Board has considered
the application and all comments received in light of
the factors set forth in section 3(c) of the Act
(12 U.S.C. § 1841(c)).
The Board previously has determined that a state
savings bank is a "bank" under section 2(c) of the Act
if it accepts demand deposits, engages in the business
of making commercial loans, and is not covered by the
exemption created by the Garn-St Germain Depository Institutions Act of 1982 for thrift institutions
insured by the Federal Savings and Loan Insurance
Corporation ("FSLIC") or operating under a charter
by the Federal Home Loan Bank Board. 1 Bank accepts demand deposits and engages in the business of
making commercial loans, and its deposits are not
insured by the FSLIC. Accordingly, Bank is a "bank"
for purposes of the Act, and Applicant's application to
become a bank holding company through acquisition
of Bank has been considered in light of the requirements of section 3 of Act pertaining to the acquisition
of banks.
Applicant is a non-operating corporation with no
subsidiaries, formed for the purpose of acquiring
Bank. Bank is the 36th largest depository institution
among commercial banks and thrift institutions in
Massachusetts, with deposits of $360.5 million, representing 0.4 percent of the total deposits in commercial
banks and thrift institutions in the state. 2 Bank is the
29th largest depository institution in the metropolitan
Order Approving Formation of a Bank Holding
Company
First Essex Bancorp, Inc., Lawrence, Massachusetts,
has applied for the Board's approval under section
3(a)(1) of the Bank Holding Company Act ("Act"),
1. Excel
Bancorp,
( 1 9 8 6 ) ; First
Fidelity
Inc.,
72
TIN 4 8 7 ( 1 9 8 6 ) ; BankVermont
BULLETIN
RESERVE
829
(1984);
BULLETIN
FEDERAL
Bancorporation,
Corporation,
The
654
RESERVE
Frankford
(1984);
The
RESERVE BULLETIN 3 5 9 ( 1 9 8 4 ) ; First
7 0 FEDERAL
Corporation,
One
NH
RESERVE BULLETIN 8 7 4 ( 1 9 8 3 ) ; Amoskeag
Bancorp,
Banks,
Bank
FEDERAL RESERVE B U L L E T I N 8 6 0 ( 1 9 8 3 ) .
5. 12 C.F.R. Part 225, Appendix A.
BULLETIN
731
7 2 FEDERAL RESERVE B U L L E -
2. State banking data as of March 31, 1986.
Inc.,
RESERVE
70
FEDERAL
70
FEDERAL
6 9 FEDERAL
Shares,
Inc.,
69
Legal Developments
Boston banking market, 3 representing 0.6 percent of
the total deposits in commercial banks and thrift
institutions in the market. 4 Because this proposal
represents the restructuring of Bank's ownership into
corporate form, consummation of the proposal would
not have any significant effect on existing or probable
future competition, nor would it significantly increase
the concentration of banking resources in Bank's
market or in the state of Massachusetts.
The financial and managerial resources of Applicant
and Bank are regarded as satisfactory and consistent
with approval. Considerations relating to the convenience and needs of the community to be served are
also consistent with approval of the proposal.
Bank engages through a separate department of the
bank in the sale and issuance of Savings Bank Life
Insurance ("SBLI"). As required by Massachusetts
law, the assets, reserves and earnings of Bank's SBLI
department are segregated from all other assets and
liabilities of the Bank and Bank's deposits and other
resources are not at risk by virtue of its participation in
SBLI. 5
In connection with Applicant's proposal, the National Association of Life Underwriters, the National
Association of Professional Insurance Agents, the
Independent Insurance Agents of America Incorporated, the National Association of Casualty and Surety
Agents, and the National Association of Surety Bond
Producers ("Protestants") submitted comments protesting this application on the grounds that the SBLI
activities conducted by Bank are prohibited under the
amendments to section 4 contained in the Garn-St
Germain Depository Institutions Act.
In response, Applicant has argued that the nonbanking prohibitions of the BHC Act, including the provisions relating to insurance activities of bank holding
companies and their subsidiaries, are not applicable
where the activity is conducted, as here, solely within
the bank. In order to expedite consideration of the
application, however, Applicant has agreed that, within two years of consummation of its acquisition of
Bank, Bank will divest or terminate its SBLI activities, unless during such period Applicant receives
approval pursuant to an application under section
4(c)(8) of the Act to retain such activities, or the Board
3. The metropolitan Boston banking market is approximated by the
Boston Ranally Metropolitan Area, the towns of Ayer, Berlin, Groton, Harvard, Pepperell and those portions of Bellingham, Carber,
Lakeville, Middleboro and Plymouth, Massachusetts, not already
included in the Boston Ranally Metropolitan Area, less the towns of
Brentwood, Chester and Derry, N e w Hampshire.
4. Market data are as of June 30, 1985.
5. If the claims upon Bank's SBLI department exceed the department's reserves, those claims are paid by the Massachusetts General
Insurance Guaranty Fund.
355
otherwise determines, as Applicant contends, that
these activities are permissible under the Act when
conducted directly by subsidiary banks of bank holding companies.
Accordingly, and without resolving the question as
to whether section 4 of the Act governs the SBLI
activities conducted directly by savings banks owned
by bank holding companies, the Board has determined
to accept Applicant's commitment to divest such
activities within two years of consummation of the
proposal unless during that period Applicant obtains a
Board determination that Bank may continue to conduct its SBLI activities under the Act. The Board
wishes to emphasize that its action in this case does
not constitute a decision by the Board on the merits of
the issues raised by Protestants.
In this regard, the Board notes that, even were the
Board to conclude, as the Protestants claim, that the
insurance prohibitions of the Act apply to the direct
activities of Bank, the Board would, in accordance
with the express provisions of the Act, allow the
Applicant two years to conform to the nonbanking
provisions of the Act. 6 The Board believes the twoyear period to be particularly appropriate in this case
in light of the facts that Bank has conducted this
activity safely and soundly pursuant to explicit state
authorization for over 50 years and that this proposal
involves merely a restructuring of Bank's ownership
and will not result in an expansion of the activity or its
transfer to another banking organization. In addition,
the Board notes that an immediate requirement for
cessation of Bank's SBLI activity could cause adverse
consequences for other institutions offering SBLI as
well as the state-SBLI financial guaranty fund. On this
basis, and in view of the special and historical relationship between savings banks and the SBLI program,
the Board has determined to grant the two-year divestiture period proffered by Applicant. This action is
consistent with the Board's treatment of SBLI activities in the application of Neworld Bancorp (Order
issued March 13, 1987).
6. Section 4(a)(2) of the Act (12 U.S.C. § 1843(a)(2)) expressly
provides that a company has two years from the date it becomes a
bank holding company to terminate any impermissible activities.
The Board has also allowed, in certain circumstances, already
established bank holding companies a similar two-year period to
divest impermissible nonbanking activities acquired in connection
with the acquisition of a permissible activity. Maryland
National
Corporation,
Pacific
7 3 F E D E R A L RESERVE B U L L E T I N 3 1 0 ( 1 9 8 7 ) ;
Corporation,
Security
7 2 F E D E R A L RESERVE B U L L E T I N 8 0 0 , 8 0 2 n . 1 2
( 1 9 8 6 ) ; Citicorp/Quotron,
7 2 F E D E R A L RESERVE B U L L E T I N 4 9 7 , 5 0 0
(1986); Chase Manhattan
Corporation,
TIN 9 6 0 ( 1 9 5 8 ) ; Baltimore
Bancorp,
901 (1985); Citicorp/First
71 FEDERAL RESERVE BULLE-
7 1 F E D E R A L RESERVE B U L L E T I N
Federal
RESERVE B U L L E T I N 1 4 9 , 1 5 5 ( 1 9 8 4 ) .
Savings
& Loan,
70 FEDERAL
356
Federal Reserve Bulletin • May 1987
Based on the foregoing and other facts of record,
including the commitments made by Applicant, the
Board has determined that the application should be
and hereby is approved. The acquisition of Bank shall
not be consummated before the thirtieth calendar day
following the effective date of this Order, or later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Boston,
pursuant to delegated authority.
By order of the Board of Governors, effective
March 27, 1987.
Voting for this action: Chairman Volcker and Governors
Johnson, Angell, and Heller. Absent and not voting: Governor Seger.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
Imperial Bancorp
Inglewood, California
Order Approving Acquisition of a Bank
Imperial Bancorp, Inglewood, California, a bank holding company within the meaning of the Bank Holding
Company Act (12 U.S.C. § 1841 et seq.) (the "Act"),
has applied for the Board's approval under section
3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to acquire
National Bank of Arizona, Scottsdale, Arizona
("Bank").
Notice of the application, affording opportunity for
interested persons to submit comments, has been
given in accordance with section 3(b) of the Act. The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the Act.
Applicant is the 12th largest commercial banking
organization in California, with approximately $1.3
billion in domestic deposits, representing less than one
percent of the total deposits in commercial banks in
California.1 Bank, with domestic deposits of approximately $24.2 million, is among the smaller commercial
banking organizations in Arizona, controlling less than
one percent of the total deposits in commercial banks
in Arizona.
Section 3(d) of the Act (12 U.S.C. § 1842(d)), the
Douglas Amendment, prohibits the Board from approving any application by a bank holding company to
acquire control of any bank located outside of the
holding company's home state, 2 unless such acquisition is "specifically authorized by the statute laws of
the state in which [the] bank is located, by language to
that effect and not merely by implication." The Board
has previously determined that the statute laws of
Arizona authorize an out-of-state financial institution
to acquire any Arizona financial institution that has
applied to operate in Arizona before May 31, 1984,
subject to approval by the State Banking Superintendent. 3 The Arizona State Banking Superintendent has
approved Applicant's proposal to acquire Bank in a
formal Decision & Notice dated December 19, 1986.
Based on the foregoing, the Board has determined that
the proposed acquisition is specifically authorized by
the statute laws of Arizona and that Board approval of
the proposal is not barred by the Douglas Amendment.
Applicant does not operate a bank or non-banking
subsidiary in any market in which Bank operates.
Based on all the facts of record, consummation of the
proposed transaction would not result in any significant adverse effects on existing or potential competition or increase the concentration of banking resources in any relevant area.
The financial and managerial resources and future
prospects of Applicant and Bank are regarded as
consistent with approval, particularly in light of improvements at both Applicant and Bank and certain
commitments made by Applicant.
With respect to managerial resources, the Board has
considered certain violations by Applicant and Bank
of the Currency and Foreign Transactions Reporting
Act ("CFTRA") and the regulations thereunder. 4 The
Board notes that Applicant and Bank have established
comprehensive policies and procedures to ensure
compliance with the CFTRA. Applicant now has in
place a centralized customer exemption list and a
written operating procedures manual which specifically addresses the areas of past violations, and Examiners from the Federal Reserve Bank of San Francisco
have determined that management is exercising appropriate supervision over Applicant's compliance with
the CFTRA in line with the manual. Bank now has in
2. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later.
3. Ariz. Rev. Stat. § 6-321 et seq.; see Marshall & Ilsley Corporation,
1. Banking data are as of March 30, 1986.
7 2 F E D E R A L RESERVE B U L L E T I N 7 2 0 ( 1 9 8 6 ) .
4. 31 U.S.C. § 5311 et seq:-, 31 C.F.R. § 103.
Legal Developments
place a currency transaction report review procedure
as well as an exemption list review procedure. Examiners from the Office of the Comptroller of the Currency have reviewed the sufficiency of the compliance
procedures adopted by Bank and their efficacy in
correcting the deficiencies. The Board has consulted
with appropriate enforcement agencies, and has considered Applicant's and Bank's past record of compliance with law. For the foregoing reasons, and based
upon a review of all of the facts of record, the Board
concludes that the managerial resources of Applicant
and Bank are consistent with approval. Considerations
relating to the convenience and needs of the communities to be served are also consistent with approval.
Based on the foregoing and other facts of record,
including certain commitments made by Applicant, the
Board has determined that the application should be,
and hereby is, approved. The acquisition of Bank shall
not be consummated before the thirtieth calendar day
following the effective date of this Order or later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of San Francisco, acting pursuant to delegated authority.
By order of the Board of Governors, effective
March 2, 1987.
Voting for this action: Chairman Volcker and Governors
Johnson, Seger, and Angell. Absent and not voting: Governor Heller.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
Neworld Bancorp, Inc.
Boston, Massachusetts
357
given in accordance with section 3(b) of the Act. The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the Act (12 U.S.C. § 1842(c)).
The Board previously has determined that a state
savings bank is a "bank" under section 2(c) of the Act
if it accepts demand deposits, engages in the business
of making commercial loans, and is not covered by the
exemption created by the Garn-St. Germain Depository Institutions Act of 1982 for thrift institutions
insured by the Federal Savings and Loan Insurance
Corporation ("FSLIC") or operating under a charter
by the Federal Home Loan Bank Board. 1 Bank accepts demand deposits and engages in the business of
making commercial loans, and its deposits are not
insured by the FSLIC. Accordingly, Bank is a "bank"
for purposes of the Act, and Applicant's application to
become a bank holding company through acquisition
of Bank has been considered in light of the requirements of section 3 of Act pertaining to the acquisition
of banks.
Applicant is a non-operating corporation with no
subsidiaries, formed for the purpose of acquiring
Bank. Bank is the 13th largest depository institution
among commercial banks and thrift institutions in
Massachusetts, with deposits of approximately $1.0
billion controlling 1.1 percent of the total deposits in
commercial banks and thrift institutions in the state. 2
Bank is the 12th largest depository institution in the
metropolitan Boston banking market, 3 controlling 1.3
percent of the total deposits in commercial banks and
thrift institutions in the market. 4 Bank also operates in
the Cape Cod banking market, 5 where it is the third
largest depository institution, controlling 11.9 percent
of the total deposits in commercial banks and thrift
institutions in that market. Because this proposal
involves the restructuring of Bank's ownership into
Order Approving Formation of a Bank Holding
Company and Acquisition of Nonbanking Activities
Neworld Bancorp, Inc., Boston, Massachusetts, has
applied for the Board's approval under section 3(a)(1)
of the Bank Holding Company Act ("Act")
(12 U.S.C. § 1842(a)(1)), to become a bank holding
company by acquiring Neworld Bank for Savings,
Boston, Massachusetts ("Bank"), and thereby indirectly to acquire 100 percent of the voting shares of
Bank's wholly owned subsidiaries, Chasaba Corp.,
Church Corp., Inc., and BRSB Realty Co., Inc. Bank
is a state-chartered stock savings bank, the accounts
of which are insured by the Federal Deposit Insurance
Corporation.
Notice of the application, affording an opportunity
for interested persons to submit comments, has been
1. Excel
Bancorp,
Inc.,
72
FEDERAL
RESERVE
BULLETIN
731
(1986); First Fidelity Bancorporation, 72 FEDERAL RESERVE BULLETIN 487 (1986); BankVermont Corporation, 70 FEDERAL RESERVE
BULLETIN 829 (1984); The Frankford Corporation, 70 FEDERAL
RESERVE
BULLETIN
654
(1984);
The
RESERVE B U L L E T I N 3 5 9 ( 1 9 8 4 ) ; First
One
NH
RESERVE BULLETIN 874 (1983); Amoskeag
Bancorp,
Banks,
Inc.,
70
FEDERAL
6 9 FEDERAL
Bank Shares,
Inc., 69
F E D E R A L RESERVE B U L L E T I N 8 6 0 ( 1 9 8 3 ) .
2. Banking data are as of September 30, 1986.
3. The metropolitan Boston banking market is approximated by the
Boston Ranally Metropolitan Area, the towns of Ayer, Berlin, Groton, Harvard, Pepperell and Shirley, Massachusetts, and those portions of Bellingham, Carber, Lakeville, Middleboro and Plymouth,
Massachusetts, not already included in the Boston Ranally Metropolitan Area, less the towns of Brentwood, Chester and Derry, New
Hampshire.
4. Market data are as of June 30, 1985.
5. The Cape Cod banking market consists entirely of Barnstable
County, Massachusetts.
358
Federal Reserve Bulletin • May 1987
corporate form, consummation of the proposal would
not have any significant effect on existing or probable
future competition, nor would it significantly increase
the concentration of banking resources in Bank's
markets or in the state of Massachusetts.
Bank engages through wholly owned subsidiaries in
certain real estate investment and development activities and real estate brokerage activities authorized for
Bank pursuant to state law. The Board has requested
comment regarding the permissible scope and extent
of real estate investment and development activities of
bank holding companies and their subsidiaries and the
scope of section 225.22(d)(2) of Regulation Y, which
authorizes state banks owned by bank holding companies to establish wholly owned subsidiaries to engage
in activities the state bank is authorized to conduct
directly under state law. 6 Pending completion of these
rulemakings, the Board has, in a limited number of
instances, permitted state-chartered savings banks to
continue to engage through subsidiaries in real estate
investment and development activities, provided that
the savings banks limit the level and scope of these
activities and maintain adequate capital to support the
activities.7 Applicant has provided commitments that
so limit Bank's real estate activities, and has committed to conform these activities to such real estate
regulation as the Board may adopt. Accordingly, subject to these commitments, the Board has determined
that Bank's real estate investment and development
activities do not preclude approval of this application.
Bank also engages, through a separate department,
in the sale and issuance of Savings Bank Life Insurance ("SBLI"). As required by Massachusetts law,
the assets, reserves and earnings of Bank's SBLI
department are held solely for the benefit of policyholders. These holdings are segregated from all other
assets and liabilities of Bank and Bank's deposits and
other resources are not at risk by virtue of its participation in SBLI. 8
In connection with Applicant's proposal, the American Council of Life Insurance, the American Insurance Association, the National Association of Independent Insurers, the Alliance of American Insurers,
the National Association of Life Underwriters, the
National Association of Professional Insurance
Agents, the Independent Insurance Agents of America
Incorporated, the National Association of Casualty
6. 52 Federal Register 543 (1987); 49 Federal Register 794 (1984).
7. See, e.g., Suffield Financial Corporation, 73 FEDERAL RESERVE
BULLETIN
5 8 ( 1 9 8 7 ) ; Excel
BULLETIN 731
( 1 9 8 6 ) ; First
Bancorp,
Fidelity
Inc.,
7 2 FEDERAL
Bancorporation,
72
and Surety Agents, and the National Association of
Surety Bond Producers submitted comments protesting this application on the grounds that the SBLI
activities conducted by Bank are prohibited under the
amendments to section 4 contained in the Garn-St
Germain Depository Institutions Act.
In response, Applicant has argued that the nonbanking prohibitions of the Act, including the provisions
relating to insurance activities of bank holding companies and their subsidiaries, are not applicable where
the activity is conducted, as here, solely within the
bank. In order to expedite consideration of the application, however, Applicant has agreed that, within
two years of consummation of its acquisition of Bank,
Bank will divest or terminate its SBLI activities,
unless during such period Applicant receives approval
pursuant to an application under section 4(c)(8) of the
Act to retain such activities, or the Board otherwise
determines, as Applicant contends, that these activities are permissible under the Act when conducted
directly by subsidiary banks of bank holding companies.
Accordingly, and without resolving the question as
to whether section 4 of the Act governs the SBLI
activities conducted directly by savings banks owned
by bank holding companies, the Board has determined
to accept Applicant's commitment to divest or terminate such activities within two years of consummation
of the proposal unless during that period Applicant
obtains a Board determination that Bank may continue
to conduct its SBLI activities under the Act. The
Board wishes to emphasize that its action in this case
does not constitute a decision by the Board on the
merits of the issues raised by Protestants.
In this regard, the Board notes that, even were the
Board to conclude, as the Protestants claim, that the
insurance prohibitions of the Act apply to the direct
activities of Bank, the Board would, in accordance
with the express provisions of the Act, allow the
Applicant two years to conform to the nonbanking
provisions of the Act. 9 The Board believes the two
year period to be particularly appropriate in this case
in light of the facts that Bank has conducted this
9. Section 4(a)(2) of the Act (12 U.S.C. 1843(a)(2)) expressly provides that a company has two years from the date it becomes a bank
holding company to terminate any impermissible activities.
The Board has also allowed, in certain circumstances, already
established bank holding companies a similar two-year period to
divest impermissible nonbanking activities acquired in connection
with the acquisition of a permissible activity. See, e.g.,
Maryland
National
Corporation,
7 3 F E D E R A L RESERVE B U L L E T I N 3 1 0 ( 1 9 8 7 ) ;
RESERVE
Security
FEDERAL
8 0 2 n . 1 2 ( 1 9 8 6 ) ; Citicorp/Quotron,
Pacific
Corporation,
7 2 F E D E R A L RESERVE B U L L E T I N 8 0 0 ,
RESERVE B U L L E T I N 4 8 7 ( 1 9 8 6 ) .
497, 500 (1986); Chase Manhattan
8. If the claims upon Bank's SBLI department exceed the department's reserves, those claims are paid by the Massachusetts General
Insurance Guaranty Fund.
BULLETIN
960
( 1 9 8 5 ) ; Baltimore
7 2 F E D E R A L RESERVE B U L L E T I N ,
Corporation,
Bancorp,
BULLETIN 901 (1985); Citicorp/First
71 FEDERAL RESERVE
71
Federal
FEDERAL RESERVE B U L L E T I N 1 4 9 , 1 5 5 ( 1 9 8 4 ) .
FEDERAL
Savings
RESERVE
& Loan,
70
Legal Developments
activity safely and soundly pursuant to explicit state
authorization for over 40 years and that this proposal
involves merely a restructuring of Bank's ownership
and will not result in an expansion of the activity or its
transfer to another banking organization. In addition,
the Board notes that an immediate requirement for
cessation of Bank's SBLI activity could cause adverse
consequences for other institutions offering SBLI as
well as the state-SBLI financial guaranty fund. On this
basis, and in view of the special and historical relationship between savings banks and the SBLI program,
the Board has determined to grant the two-year divestiture period proffered by Applicant.
In its evaluation of Applicant's managerial resources, the Board has considered certain violations
by Bank of the Currency and Foreign Transactions
Reporting Act ("CFTRA") and the regulations thereunder. 10 These violations were reported to be technical in nature and comparatively limited in scope.
Subsequent examination of Bank showed that it has
adopted compliance procedures sufficient to address
CFTRA violations. The Board also has consulted with
appropriate enforcement agencies, and has considered
Bank's record of compliance with the law. For the
foregoing reasons, and based upon a review of all facts
of record, the Board finds the managerial resources of
Applicant and Bank to be consistent with approval.
The financial resources and future prospects of
Applicant and Bank are regarded as satisfactory and
consistent with approval. Considerations relating to
the convenience and needs of the community to be
served are also consistent with approval of Applicant's
proposal.
Based on the foregoing and other facts of record,
including the commitments made by Applicant, the
Board has determined that the application under section 3 of the Act should be and hereby is approved.
The acquisition of Bank shall not be consummated
before the thirtieth calendar day following the effective
date of this Order, or later than 90 days after the
effective date of this Order, unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of Boston, pursuant to delegated authority.
By order of the Board of Governors, effective
March 13, 1987.
359
Saban S.A.
Panama City, Republic of Panama
Republic N e w York Corporation
N e w York, N e w York
Order Approving Acquisition of a Bank
Saban S.A., Panama City, Republic of Panama, and
Republic New York Corporation, New York, New
York (collectively, "Applicant"), both bank holding
companies within the meaning of the Bank Holding
Company Act (12 U.S.C. § 1841 et seq.) (the "Act"),
have applied for the Board's approval under section
3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to acquire all
of the voting shares of New WSB Savings Bank, New
York, New York, a stock savings bank in organization
that will be the successor by merger to The Williamsburgh Savings Bank, Brooklyn, New York ("Bank").
Notice of the application, affording an opportunity
for interested persons to submit comments, has been
published (52 Federal Register 6218 (1987)). The time
for filing comments has expired, and the Board has
considered the application and all comments received
in light of the factors set forth in section 3(c) of the Act
(12 U.S.C. § 1842(c)).
The Board previously has determined that a state
savings bank is a "bank" under section 2(c) of the Act
if it accepts demand deposits, engages in the business
of making commercial loans, and either is not covered
by the exemption created by the Garn-St Germain
Depository Institutions Act of 1982 for thrift institutions insured by the Federal Savings and Loan Insurance Corporation ("FSLIC") or is operating under a
charter by the Federal Home Loan Bank Board. 1 Bank
will accept deposits and engage in the business of
making commercial loans, and its deposits will not be
insured by the FSLIC. Accordingly, Bank will be a
"bank" for purposes of the Act. The application
therefore has been considered in light of the requirements of section 3 of the Act pertaining to the acquisition of banks.
Applicant is the 14th largest commercial banking
organization in New York, with deposits of approximately $3.9 billion, controlling 1.5 percent of the total
deposits in commercial banking organizations in the
state. 2 Bank is the 15th largest commercial banking
Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, and Heller. Absent and not voting:
Chairman Volcker.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
1. Excel
Bancorp,
( 1 9 8 6 ) ; First
Fidelity
Inc.,
72
TIN 4 8 7 ( 1 9 8 6 ) ; BankVermont
BULLETIN
RESERVE
829
(1984);
BULLETIN
FEDERAL
Bancorporation,
Corporation,
The
654
Frankford
(1984);
The
RESERVE B U L L E T I N 3 5 9 ( 1 9 8 4 ) ; First
7 0 FEDERAL
One
NH
F E D E R A L RESERVE B U L L E T I N 8 6 0 ( 1 9 8 3 ) .
12 C . F . R . § 103 et
seq.
BULLETIN
Corporation,
RESERVE B U L L E T I N 8 7 4 ( 1 9 8 3 ) ; Amoskeag
10. 3 1 U . S . C . § 5 3 1 1 et seq.,
RESERVE
731
7 2 F E D E R A L RESERVE B U L L E -
2. Banking data are as of June 30, 1984.
Bancorp,
Banks,
Bank
Inc.,
RESERVE
70
FEDERAL
70
FEDERAL
6 9 FEDERAL
Shares,
Inc.,
69
360
Federal Reserve Bulletin • May 1987
organization in New York, with approximately $2.3
billion in deposits, controlling 1.1 percent of the total
deposits in commercial banking organizations in New
York. Upon consummation of this proposal, Applicant
would become the 10th largest commercial banking
organization in New York. Consummation of this
proposal would not have a significant effect on the
concentration of banking resources in New York.
Both Applicant and Bank operate in the Metropolitan New York-New Jersey market. 3 Applicant is the
15th largest of 163 commercial banking organizations
in the market, with 1.4 percent of the total deposits in
commercial banking organizations in the market. Bank
is the 16th largest commercial banking organization in
the market, with 1.1 percent of the total deposits in
commercial banking organizations in the market.
Upon consummation of the transaction, Applicant will
become the 10th largest commercial banking organization in the market with 2.5 percent of the total deposits
in commercial banking organizations in the market.
The market is unconcentrated, with a HerfindahlHirschman Index ("HHI") of 687, and the proposed
acquisition will increase the HHI by 4 points. Accordingly, the Board concludes that the acquisition would
have no significant adverse effect on existing competition in the market. 4
Bank currently engages through wholly owned subsidiaries in certain real estate investment activities
authorized by state law. Applicant has committed that,
upon consummation, Bank will not engage, directly or
indirectly, in any real estate investment or development activities impermissible under the Act, except to
complete existing projects. Bank will complete and
dispose of those projects within two years of consummation of the proposal.
Bank engages, through a separate department, in the
sale and issuance of Savings Bank Life Insurance
("SBLI"). As required by New York law, the assets,
reserves and earnings of Bank's SBLI department are
3. The Metropolitan N e w York-New Jersey market is approximated by all of N e w York City and Long Island, N e w York; Putnam,
Westchester, Rockland and Orange Counties in N e w York; Bergen,
Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean,
Passaic, Somerset, Sussex, Union and Warren Counties in N e w
Jersey; and portions of Fairfield County in Connecticut.
4. If deposits held by thrift institutions in the Metropolitan N e w
York-New Jersey market were included in the calculation of market
concentration, Applicant would be the 26th largest of 403 depository
institutions in the market with .9 percent of the total deposits in
depository institutions in the market. Bank would be the 29th largest
depository institution in the market with .7 percent of the total
deposits in depository institutions in the market. Upon consummation
of the transaction, Applicant would become the 13th largest depository institution in the market with 1.6 percent of the total deposits in
depository institutions in the market. The market would be unconcentrated, with a Herfindahl-Hirschman Index ("HHI") of 287, and the
proposed acquisition would increase the HHI by 1 point.
held solely for the benefit of policyholders. These
holdings are segregated from all other assets, liabilities, obligations, and expenses of Bank. 5 Bank also
engages in certain insurance activities through a subsidiary. The subsidiary acts as an agent in selling
various types of insurance, almost exclusively life
insurance and annuity contracts.
In connection with Applicant's proposal, the Independent Insurance Agents of America, Inc., the National Association of Casualty and Surety Agents, the
National Association of Surety Bond Producers, the
National Association of Life Underwriters, and the
National Association of Professional Insurance Agents
submitted comments protesting this application on the
grounds that the insurance activities conducted by
Bank are prohibited under the amendments to section
4 of the Act, contained in the Garn-St Germain
Depository Institutions Act of 1982.6
In response to the protests and in order to expedite
consideration of the application, Applicant has agreed
that, within two years of consummation of its acquisition of Bank, Bank will divest or terminate its SBLI
activities, unless during such period Applicant receives approval pursuant to an application under section 4(c)(8) of the Act to retain such activities, or the
Board otherwise determines that these activities are
permissible under the Act when conducted directly by
subsidiary banks of bank holding companies.
Accordingly, and without resolving whether section
4 of the Act governs the SBLI activities conducted
directly by savings banks owned by bank holding
companies, the Board has determined to accept Applicant's commitment to divest or terminate such activities within two years of consummation of the proposal
unless during that period Applicant obtains a Board
determination that Bank may continue to conduct its
SBLI activities under the Act. The Board wishes to
emphasize that its action in this case does not constitute a decision by the Board on the merits of the issues
raised by Protestants.
In this regard, the Board notes that, even if the
Board were to conclude, as the Protestants claim, that
the insurance prohibitions of the Act apply to the
5. If the claims upon Bank's SBLI department exceed the department's reserves, those claims are paid by the N e w York State SBLI
Fund.
6. The National Association of Life Underwriters and the National
Association of Professional Insurance Agents have also requested that
the Board order a factual hearing to determine whether the application
complies with section 4(c)(8) of the Act. Although section 3(b) of the
Act does not require a formal hearing in this instance, the Board may,
in any case, order an informal or formal hearing. In light of the
commitments made by Applicant and other facts of record, the Board
has determined that a hearing would serve no useful purpose. Accordingly, the request for a hearing is denied.
Legal Developments
direct activities of Bank, the Board would, under the
circumstances of this case, allow the Applicant two
years to conform to the nonbanking provisions of the
Act. 7 The Board believes the two-year period to be
particularly appropriate in this case in light of the facts
that this acquisition will result in the recapitalization of
Bank and that Bank has conducted this activity safely
and soundly pursuant to explicit state authorization for
over 40 years. In addition, the Board notes that an
immediate requirement for cessation of Bank's SBLI
activity could cause adverse consequences for other
institutions offering SBLI as well as the state-SBLI
financial guaranty fund. On this basis, and in view of
the special and historical relationship between savings
banks and the SBLI program, the Board has determined to grant the two-year divestiture period proffered by Applicant.
With regard to the Bank's remaining insurance
activities, Applicant has agreed that, within two years
of consummation of the acquisition, Bank will divest
or terminate the insurance activities of its subsidiary,
unless during such period Applicant receives approval
pursuant to an application under section 4(c)(8) of the
Act to retain such activities. During this two-year
period or unless authorization is granted pursuant to
the Act for broader activities, Bank will limit the
insurance activities of its subsidiary to renewal of
existing policies.8
In evaluating this application, the Board has considered the financial and managerial resources of Applicant and the effect on those resources of the proposed
acquisition. In this regard, the Board has previously
stated that it expects organizations experiencing substantial growth internally and by acquisition, such as
Applicant, to maintain a strong capital position substantially above the minimum levels specified in the
Capital Adequacy Guidelines, without significant reliance on intangibles, particularly goodwill.9 Although
361
the proposed transaction will result in the creation of a
substantial amount of intangible assets, Applicant's
tangible primary capital ratio is and will remain well
above the minimum level specified in the Guidelines.
In this connection, the Board notes that, earlier this
year, Applicant raised primary capital in anticipation
of the acquisition in an amount that would offset the
decline in its tangible primary capital that otherwise
would occur in connection with the acquisition. With
respect to Bank's financial resources, Applicant will
inject a significant amount of capital into Bank and
maintain Bank's tangible primary capital ratio above
the Board's minimum Guidelines. Accordingly, the
Board concludes that the financial and managerial
resources and future prospects of Applicant are satisfactory and consistent with approval.
Considerations relating to the convenience and
needs of the communities to be served also are consistent with approval, particularly in light of the fact that
the acquisition will result in the recapitalization of
Bank and enable it to continue to provide services to
the public.
Based on the foregoing and other facts of record,
including the commitments made by Applicant, the
Board has determined that the application under section 3 of the Act should be and hereby is approved.
The acquisition of Bank shall not be consummated
before the thirtieth calendar day following the effective
date of this Order, or later than 90 days after the
effective date of this Order, unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of New York, pursuant to
delegated authority.
By order of the Board of Governors, effective
March 30, 1987.
Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, and Heller. Absent and not voting:
Chairman Volcker.
JAMES M C A F E E
7. Section 4(a)(2) of the Act (12 U.S.C. § 1843(a)(2)) expressly
provides that a company has two years from the date it becomes a
bank holding company to terminate any impermissible activities.
Although Applicant is an established bank holding company, the
Board has also allowed, in certain circumstances, already established
bank holding companies a similar two-year period to divest impermissible nonbanking activities acquired in connection with the acquisition
of a permissible activity. See, e.g., Maryland National
Corporation,
73 FEDERAL RESERVE BULLETIN (1987); Security Pacific Corporation,
7 2 F E D E R A L RESERVE B U L L E T I N 8 0 0 , 8 0 2 n . 1 2 ( 1 9 8 6 ) ;
Quotron,
7 2 F E D E R A L RESERVE B U L L E T I N 4 9 7 , 5 0 0 ( 1 9 8 6 ) ;
Manhattan
Corporation,
Baltimore
Bancorp,
F E D E R A L RESERVE B U L L E T I N
901
Chase
(1985);
Citicorp/First Federal Savings & Loan, 70 FEDERAL RESERVE BULLETIN 149, 155 (1984).
8 . See
Standard
Chartered
PLC,
7 3 FEDERAL RESERVE B U L L E T I N
167 (1987).
9 . Citicorp,
Associate Secretary of the Board
Orders Isued Under Section 4 of the Bank
Holding Company Act
Citicorp!
7 1 F E D E R A L RESERVE B U L L E T I N 9 6 0 ( 1 9 8 5 ) ;
71
[SEAL]
BankAmerica Corporation
San Francisco, California
Bankers Trust N e w York Corporation
N e w York, N e w York
7 2 F E D E R A L RESERVE B U L L E T I N 7 2 4 ; C a p i t a l A d e q u a -
cy Guidelines, 50 Federal Register 16,057, 16,066-67 (April 24, 1985),
71 Federal Reserve Bulletin 445 (1985); National City Corporation, 70
F E D E R A L RESERVE B U L L E T I N 7 4 3 , 7 4 6 ( 1 9 8 4 ) .
The Chase Manhattan Corporation
N e w York, N e w York
362
Federal Reserve Bulletin • May 1987
Chemical N e w York Corporation
N e w York, N e w York
Citicorp
N e w York, N e w York
Continental Illinois Corporation
Chicago, Illinois
First Chicago Corporation
Chicago, Illinois
First Interstate Bancorp
Los Angeles, California
The Hong Kong and Shanghai Banking
Corporation, Hong Kong; Kellett N . V . ,
Curacao, Netherlands Antilles; H S B C Holdings
B.V., Amsterdam, The Netherlands; and
Marine Midland Banks, Inc., Buffalo, N e w
York
Irving Bank Corporation
N e w York, N e w York
Federal agencies for certain dealers in these securities
("interdealer broker"). Liberty currently brokers only
U.S. Treasury notes and bonds, including zero coupon
bonds, but intends to commence brokering Treasury
bills and other U.S. Government and Federal agency
securities as soon as practicable.
The Board has previously determined that the proposed activity is closely related to banking and thus
permissible for bank holding companies. The Bank of
New York Company, Inc., 72 F E D E R A L RESERVE
B U L L E T I N 336 (1986); 12 C . F . R . § 225.25(b)(15)-(16).
Notice of the applications, affording interested persons an opportunity to submit comments, has been
duly published. 51 Federal Register 28,624 (1986). The
time for filing comments has expired, and the Board
has considered the applications and all comments
received in light of the public interest factors set forth
in section 4(c)(8) of the Act.
As an interdealer broker, Liberty arranges for the
purchase and sale of securities of the U.S. Government and Federal agencies on behalf of primary dealers and some aspiring dealers. 2 It disseminates price
quotations on closed-circuit display screens located in
a dealer's trading room, making possible the practice
Manufacturers H a n o v e r Corporation
N e w York, N e w York
Midland Bank pic
London, England
J. P. Morgan & Co. Incorporated
N e w York, N e w York
Westpac Banking Corporation
Sydney, Australia
Order Approving Applications to Acquire Shares of a
U.S. Government Securities Broker Through a Joint
Venture
Applicants, bank holding companies within the meaning of the Bank Holding Company Act ("Act"), have
each applied for the Board's approval under section
4(c)(8) of the Act, 12 U.S.C. § 1843(c)(8), and section
225.23 of the Board's Regulation Y, 12 C.F.R.
§ 225.23, to acquire voting shares of Liberty Brokerage, Inc., New York, New York ("Liberty"). 1 Liberty
is a broker in securities of the U.S. Government and
1. The applicant bank holding companies will acquire the following
percentages of Liberty's outstanding Class A or Class B voting shares.
None of the Applicants will control more than 5.05 percent of
Liberty's total equity.
Citicorp
Bank America Corporation
J. P. Morgan & Co. Incorporated
Bankers Trust New York Corporation
The Chase Manhattan Corporation
Chemical New York Corporation
Continental Illinois Corporation
First Chicago Corporation
First Interstate Bancorp
The Hong Kong and Shanghai Banking
Corporation, etc.
Irving Bank Corporation
Manufacturers Hanover Corporation
Midland Bank pic
Westpac Banking Corporation
Class
Class
Class
Class
Class
Class
Class
Class
Class
B
B
B
A
A
A
A
A
A
14.29%
14.29
14.29
7.81
7.81
7.81
1.56
1.56
1.56
Class
Class
Class
Class
Class
A
A
A
A
A
4.69
1.56
4.69
1.56
1.56
Liberty's remaining voting shares will be held by 16 investment
banking companies, with no single company controlling more than
5.05 percent of Liberty's equity or more than 14.29 percent or 7.81
percent of Liberty's Class B or Class A shares, respectively. Through
1988, the seven Class B shareholders may elect a majority of Liberty's
directors. Beginning in 1989, the Class A shareholders will be entitled
to elect a majority of the directors. (Citicorp, J. P. Morgan, BankAmerica, Salomon Brothers, Inc., Goldman Sachs & Company, The
First Boston Corporation and Merrill Lynch and Company each will
hold equal amounts of Class B shares.) While the Class A and Class B
stock have different voting rights, they represent equal shares of the
equity and earnings of Liberty.
As Applicants would collectively control Liberty for purposes of
the Act and would acquire shares of Liberty not as a passive
investment, each Applicant must obtain the Board's approval. See
12 C.F.R. § 225.137.
2. A government securities dealer becomes designated as a primary
dealer by meeting certain trading, financial and organizational requirements established by the Federal Reserve Bank of New York
("FRBNY"). The FRBNY conducts its open market trading in
securities only with primary dealers. Aspiring dealers are dealers who
seek primary dealer status.
Legal Developments
of "blind brokering" among the primary dealers, in
which the interdealer broker tells neither the buyer nor
the seller the identity of the counterparty to the trade.
Blind brokering allows a dealer to accumulate or
dispose of its position without disclosing its strategy to
the other dealers. Typically, interdealer brokers have
only primary and aspiring dealers as customers. Most
interdealer brokers have refused to make their quotes
available to anyone other than primary dealers or
aspiring dealers, and Liberty will adopt that policy of
restricted dealing.
Applicants state that, in 1985, a group of primary
dealers decided to enter the U.S. Government securities brokerage business because of a belief that commission rates charged by existing interdealer brokers
were excessive, given the greatly expanded volume of
business and the perceived level of risk. Accordingly,
in September 1985, Salomon Brothers purchased Liberty and in March 1986 offered its shares to all thendesignated primary dealers. Sixteen securities firms
and the Applicant banking organizations accepted the
offer. The securities firms purchased the shares on
April 21, 1986.
In order to preserve the anonymity of counterparties
trading through Liberty, Liberty's day-to-day operations will be conducted separately from those of its
shareholders, and neither the shareholders nor the
directors of Liberty will have access to information on
specific trades by its customers. In addition, no employee, officer or director of any of Liberty's shareholders may simultaneously be employed as an officer
or employee of Liberty.
Liberty will continue to offer its services to all
primary dealers and aspiring dealers, regardless of
whether such customers are shareholders of Liberty.
Liberty's shareholders are free to utilize the services
of any other broker; there is no requirement that any
stockholder direct any business to Liberty. Any dividends paid by Liberty to shareholders will be based
solely on the number of shares held by the shareholder
and not on the extent to which the shareholder has
utilized Liberty's services.
The Applicants state that the primary dealers' requirement that an interdealer broker not disclose the
dealer's identity in a particular trade also underlies the
proposed widespread distribution of Liberty's shares
among 30 primary dealers. The Applicants state that, if
ownership of Liberty were to be limited to one or a
limited subset of the primary dealers, the non-shareholding dealers might refrain from doing business with
Liberty out of concern that the shareholding dealers
could gain a competitive advantage from information
about the trades of the non-shareholding dealers.
Accordingly, in order to establish the customer confidence believed necessary for Liberty's success, the
363
initial investment group decided that Liberty should be
owned by a sufficiently large number of both banking
organizations and securities firms to assure its independence.
The Board has considered the applications in light of
the Board's prior rulings regarding joint ventures
between banking and nonbanking organizations. In
these cases, the Board has approved joint venture
arrangements where the facts and circumstances, including the framework under which the joint venture
would operate, indicated that the joint venture would
not lead to a matrix of relationships between coventurers that could break down the legally mandated
separation of banking and commerce, create the possibility of conflicts of interests and concentration of
resources the Act was designed to prevent, or impair
or give the appearance of impairing the ability of a
banking organization to function effectively as an
independent and impartial provider of credit. 3
In view of the ownership and operational structure
proposed for Liberty, the Board concludes that Applicants' proposed joint venture arrangement is consistent with the principles of the Board's prior rulings and
does not raise the type of concerns identified in those
cases. In reaching this conclusion, the Board has
considered the dispersion of Liberty's ownership
among a large number of major commercial and investment banking concerns with each shareholder having a
relatively small ownership interest, the minimum relative size of each joint venturer's investment, the
narrowly defined nature of Liberty's proposed activities, its small size relative to that of its shareholders,
and the fact that the proposal will not alter the existing
separation between the banking and investment banking shareholders.
In its evaluation of the applications under the closely related and proper incident to banking standard of
section 4(c)(8) of the Act, the Board must consider
whether the benefits expected from the proposal such
as increased competition or gains in convenience are
likely to outweigh possible adverse effects such as
undue concentration of resources, decreased or unfair
competition, conflicts of interest or unsound banking
practices.
Applicants believe that Liberty will promote the
efficiency of the interdealer broker market through
investment in advanced data processing and telecom-
3. E.g., Independent
Bankers Financial Corporation,
71 FEDERAL
RESERVE B U L L E T I N 6 5 1 , 6 5 3 ( 1 9 8 5 ) a n d 7 2 F E D E R A L RESERVE B U L L E -
TIN 664 (1986); Amsterdam-Rotterdam
Bank, N.V., 70 FEDERAL
RESERVE BULLETIN 835, 836 (1984); The Maybaco Company and
Equitable
Bancorp
( 1 9 8 3 ) ; Deutsche
(1981).
oration,
Bank
AG,
69
BULLETIN
375
6 7 F E D E R A L RESERVE B U L L E T I N
FEDERAL
RESERVE
449
364
Federal Reserve Bulletin • May 1987
munications equipment. In particular, Applicants believe that through the substantial capitalization proposed for Liberty, it will be able to develop an efficient
settlement clearing system, which will lower costs and
improve service. 4 In addition, they believe that Liberty's entry into the concentrated interdealer broker
market has promoted a substantial decline (by 25 to 50
percent) in commission rates, which had remained
stable for the past 10 years despite rapid market
growth (from $.1 billion to $36.2 billion in average
daily transaction volume), greater liquidity in the
market, and the likelihood of scale economies. Based
on the record, the Board believes the proposal would
be likely to result in public benefits in the form of
improved efficiency.
The market for brokering U.S. Government and
Federal agency securities on behalf of primary dealers
is nationwide. Liberty is one of eight firms currently
acting as an interdealer broker. It does not currently
control a substantial portion of the market. Because
none of the Applicants provide such services, the
proposed acquisition would not eliminate any existing
competition.
With respect to elimination of potential competition,
the Board notes that the Applicants are each primary
dealers and/or clearing agents for Government securities transactions, a role that might conceivably facilitate de novo entry into the interdealer broker market.
In the Board's view, however, this proposal is not
likely to have any significant effect upon potential
competition as it is unlikely that a primary dealer
would be able to engage successfully in the proposed
interdealer brokerage activities alone, because other
primary dealers would be concerned that their identity
and trading positions would be revealed by the broker
to its parent. The Board also notes that numerous
other large financial institutions have the resources to
enter the market.
In addition, on the basis of the record currently
before it, the Board does not believe that ownership of
Liberty by a large number of dealers would be likely to
substantially lessen competition in the interdealer broker market. For the reasons explained below, it does
not appear likely that Liberty would become the sole
interdealer broker.
The record indicates that certain technological and
operational characteristics of the interdealer broker
market suggest that Liberty's shareholders would not
place orders with only Liberty. Currently, as explained above, primary dealers do not concentrate
4. The Board's evaluation of this application did not involve a
review of any specific settlement clearing system that may be proposed by Liberty or whether such a system would be consistent with
the Board's risk reduction policies.
their trades in any single broker in order to prevent
disclosure of their trading strategy to brokerage personnel. With only one broker, brokerage personnel
would be privy to comprehensive trading information
regarding each customer, information that would likely be sought by other dealers. Dealers that are shareholders of Liberty would also have some incentive to
maintain relationships with other brokers in the case of
mechanical or computer breakdowns at Liberty. In
addition, for technological reasons a broker effecting a
transaction in a particular security for one dealer is
unable at the same time to effect trades in that security
for other dealers. Thus, those other dealers must use
another broker to effect a trade in that security at that
time. Moreover, the brokers customarily provide the
last trader with the opportunity to accept the next
trade, resulting in a delay for other dealers, particularly where the dealer is selling a substantial position in a
series of transactions.
The Board also notes that selection of the particular
broker for a trade is customarily left to the individual
traders for each dealer, with management of the dealer
requiring only that trades not be concentrated in a
single broker. Since the trader's compensation is performance driven, the trader has a strong incentive, in
most circumstances, to seek out the best price and
execution, regardless of the commission fee differences. The applications do not indicate that the practice will be changed, and to ensure continuation of this
practice, the Board's approval of the applications is
expressly conditioned on Applicants' not directing
their traders to utilize only Liberty's services, or to
provide them compensation or other financial incentives to do so.
Moreover, the offering circular and stockholder
agreement for Liberty both state that the shareholders
will benefit from their investment in Liberty only to
the extent of the equity investment and dividends
thereon, and that a shareholder will not benefit on the
basis of trading volume transacted through Liberty,
including volume discounts. The Board's approval of
this proposal is conditioned on the continuation of this
provision of the shareholder agreement.
In assessing other competitive issues raised by the
proposed joint venture, the Board has considered that
the Antitrust Division of the U.S. Department of
Justice, on September 25, 1986, advised primary dealers and interdealer brokers that it is conducting an
investigation into possible restraints of trade involving
Liberty and access to the services of Government
securities brokers and to Government securities market information. 5 In light of this announced investiga-
5. Letters, dated September 25, 1986.
Legal Developments
tion, the Board has asked the Justice Department
whether it has concluded that consummation of the
proposal would result in or further a violation of the
antitrust laws. The Justice Department has advised the
Board that the formation of Liberty and its acquisition
by the joint venture, viewed from a structural perspective, i.e., independently of other practices, would not
violate the antitrust laws, and that the Board need not
delay action on the application for approval of the
acquisition pending the outcome of the Department's
investigation.
Accordingly, and in the absence of evidence on the
present record before the Board that consummation
would result in a violation of the antitrust laws, the
Board has determined not to defer decision on the
application pending completion of the Department's
investigation and to act on the application on the basis
of the record presently before the Board. The Board's
action will not have, and is not designed to have, any
preclusive effect on the Department's investigation.
Should the Department subsequently determine that
antitrust violations have occurred with respect to the
trading of U.S. Government securities, the Board will
review the matter and reserves the right to take
appropriate action, including requiring divestiture of
the shares of Liberty, should the Board's review of the
matter indicate that Applicants' acquisition of Liberty
will in fact result in or further a restraint of trade in
violation of the antitrust laws.
With respect to the joint venture's likely effect on
possible anticompetitive practices between Liberty's
owners and other primary dealers, the Board notes
that Liberty will offer its services to all primary and
aspiring dealers on equal terms, as do most other
brokers. In this regard, to ensure that the acquisition
of Liberty does not result in unfair competition, the
Board has conditioned its approval on Liberty's not
discriminating with respect to price or access to its
services in the case of non-shareholder primary dealers or aspiring dealers. Moreover, there are financial
disincentives for Liberty to deny access to its screens
to non-shareholder primary dealer customers of competing brokers since that action would limit the number of potential trading counterparties available
through Liberty, making it likely the bid/ask spreads
quoted by Liberty would be wider than would be the
case with broader access.
The Board, however, notes that it has made no
determination regarding the consistency of existing
practices in the government securities market with the
antitrust laws, which is the subject of the Department
of Justice investigation.
For the foregoing reasons, the Board concludes, on
the basis of the existing record, that Applicants'
acquisition of shares of Liberty would not be likely to
have any significant adverse effect upon competition.
365
The Board also finds no evidence indicating that the
acquisition would result in an undue concentration of
resources, unsound banking practices, or other adverse effects. Financial and managerial considerations
are also consistent with approval of the applications.
Based on the foregoing and other facts of record, the
Board concludes that the balance of the public interest
factors it is required to consider under section 4(c)(8)
favors approval of the applications. Accordingly, the
applications are hereby approved, with the Board
maintaining continuing jurisdiction over the applications pending review of the results of the Department
of Justice's investigation into possible restraints of
trade involving Liberty. This approval is subject to all
of the conditions set forth in Regulation Y, including
those in sections 225.4(d) and 225.23(b), 12 C.F.R.
§§ 225.4(d), 225.23(b), and to the Board's authority to
require such modification or termination of the activities of a bank holding company or any of its subsidiaries as the Board finds necessary to assure compliance
with, and to prevent evasions of, the provisions and
purposes of the Act and the Board's regulations and
orders issued thereunder.
The proposed acquisitions shall not be consummated later than three months after the effective date of
this Order unless that period is extended for good
cause by the appropriate Federal Reserve Bank pursuant to delegated authority, or by the Board.
By order of the Board of Governors, effective
March 4, 1987.
Voting for this action: Chairman Volcker and Governors
Johnson, Seger, and Angell. Absent and not voting: Governor Heller.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
Centerre Bancorporation
St. Louis, Missouri
Order Approving an Application to Provide
Employee Benefits Consulting Services
Centerre Bancorporation, St. Louis, Missouri, a bank
holding company within the meaning of the Bank
Holding Company Act ("Act"), 12 U.S.C. § 1841
et seq., has applied for the Board's approval pursuant
to section 4(c)(8) of the Act, 12 U.S.C. § 1843(c)(8),
and section 225.23 of the Board's Regulation Y,
12 C.F.R. § 225.23, to acquire all of the assets and
assume certain liabilities of Benefit Plan Services,
Inc., Maryland Heights, Missouri ("Company").
Notice of the application, affording interested persons an opportunity to submit comments, has been
366
Federal Reserve Bulletin • May 1987
duly published (52 Federal Register 3484 (1986)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the public interest factors set forth in
section 4(c)(8) of the Act.
Applicant, a bank holding company by virtue of its
ownership of 14 commercial banks in Missouri, controls total deposits of $3.8 billion, representing 9.5
percent of the deposits in commercial banks in Missouri.1 Applicant also engages in certain nonbanking
activities, such as providing trust company services,
credit-related insurance, and discount brokerage services.
Applicant proposes to organize a wholly owned
subsidiary corporation that will acquire Company, an
employee benefits consulting firm that provides a full
range of services with regard to employee benefits
plans. Applicant proposes to provide consulting services with regard to employee benefits plans such as
defined contribution plans, 401-K plans and profit
sharing plans. Applicant will transfer and refer business to Company from its nonbanking subsidiary,
Centerre Trust Company, St. Louis, Missouri, which
engages in record-keeping services for participants in
pension benefit plans as an adjunct to its principal
activities as trustee, custodian, financial advisor or
manager of benefit plans.
Company's activities can be divided into four basic
types of activities.
1. Plan Design—designing employee benefits plans
including determining actuarial funding levels and
cost estimates;
2. Plan Implementation—providing administrative
assistance in implementing employee benefits plans,
including assistance in the preparation of plan documents and the implementation of employee benefit
administration system;
3. Administrative Services—providing administrative services with respect to plans, including recordkeeping services, calculating and certifying employee benefits, preparing periodic, actuarial and other
reports and government filings, pursuant to ERISA;
and
4. Employee Communications—developing employee communication programs with respect to plans
for the benefit of the client.
The Board has previously approved applications by
bank holding companies to provide employee benefits
consulting services. 2 Although the activity encom-
1. Data are as of June 30, 1986.
2 . BankVermont
3 7 7 ( 1 9 8 6 ) ; Norstar
Corporation,
Bancorp,
729 (1986).
72
Inc.,
FEDERAL RESERVE
BULLETIN
7 2 F E D E R A L RESERVE B U L L E T I N
passes the need to provide actuarial analysis, which is
generally not performed by trust companies or banks,
the actuarial services are limited in scope to ensure
adequate funding of defined benefits plans, are an
integral part of providing employee benefits services
and are not provided as an independent service. 3
Thus, the Board concluded that the activity of providing employee benefits consulting services is closely
related to banking.
In order to approve this application, the Board must
also find that the performance of the proposed activity
can reasonably be expected to produce benefits to the
public, such as greater convenience, increased competition, or gains in efficiency, that outweigh possible
adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of
interests, or unsound banking practices. With respect
to the proposed employee benefits consulting activities of Applicant, it appears from the record that
authorizing the activity would enhance competition
and provide greater convenience and increased efficiencies, without resulting in any adverse consequences.
Clients will have the option of obtaining a complete
package of employee benefits consulting services from
a single company, including those investment and fund
management services that can be provided by other
subsidiaries of Applicant, resulting in increased convenience to the customers for this service. In addition,
the increase in the number of companies that can
conduct a broad array of services with regard to
employee benefits consulting is likely to enhance
competition in the provision of this service.
There is no evidence in the record to indicate that
Applicant's engaging in the proposed activity would
lead to any undue concentration of resources, decreased or unfair competition, unsound banking practices, or other adverse effects. Clients currently have
the option to use any component of Applicant's employee benefits consulting services individually as well
as the entire package of services, and Applicant has
committed to continue to avoid tying any employee
benefits consulting service to the purchase of the
entire employee benefits package or to any other
service offered by Applicant or its subsidiaries.
Based on the foregoing and all the facts of record,
the Board has determined that the balance of public
interest factors it is required to consider under section
4(c)(8) is favorable. The financial and managerial resources of Applicant are consistent with approval.
3. Applicant has committed to limit its actuarial activity to those
services necessary to ensure adequate funding of the employee
benefits plans. Activities that rely on actuarial analysis that is not
performed in connection with other permissible activities are not
closely related to banking. Norstar Bancorp, Inc., 72 FEDERAL
RESERVE B U L L E T I N 7 2 9 , 7 3 1 ( 1 9 8 6 ) .
Legal Developments
Accordingly, the application is hereby approved. This
determination is subject to the conditions set forth in
sections 225.4(d) and 225.23(b)(3) of the Board's Regulation Y, 12 C.F.R. §§ 225.4(d) and 225.23(b)(3). The
approval is also subject to' the Board's authority to
require modification or termination of the activities of
the holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with the
provisions and purposes of the Act and the Board's
regulations and orders issued thereunder, or to prevent evasion thereof. This transaction shall not be
consummated later than three months after the effective date of this Order, unless such period is extended
for good cause by the Board or by the Federal Reserve
Bank of St. Louis, pursuant to delegated authority.
By order of the Board of Governors, effective
March 26, 1987.
Voting for this action: Chairman Volcker and Governors
Seger, Angell, and Heller. Absent and not voting: Governor
Johnson.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
The Chase Manhattan Corporation
N e w York, N e w York
Order Approving Application to Underwrite and
Deal in Commercial Paper to a Limited Extent
The Chase Manhattan Corporation, New York, New
York, a bank holding company within the meaning of
the Bank Holding Company Act, 12 U.S.C. § 1841
et seq. ("BHC Act"), has applied pursuant to section
4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) and
section 225.21(a) of the Board's Regulation Y
(12 C.F.R. 225.21(a)) to underwrite and deal in thirdparty commercial paper to a limited extent. The activity will be conducted through Chase Commercial Corporation, Englewood, New Jersey ("Company"), a
commercial finance subsidiary.
In applying for approval for these activities, Applicant relies on the Board's December 1986 order approving an application by Bankers Trust New York
Corporation to engage to a limited extent in commercial paper placement activity through a commercial
finance subsidiary on the basis that the subsidiary
would not be "engaged principally" in the activity
within the meaning of section 20 of the Glass-Steagall
Act under the 5 percent income and market limitations
approved in that case. Bankers Trust New York Corporation, 73 F E D E R A L RESERVE B U L L E T I N 138 (1987).
Accordingly, Applicant has proposed to limit its un
367
derwriting and dealing activity to the 5 percent limitations approved in Bankers Trust.1
The Board has previously authorized Company to
engage in making and servicing loans and leasing,
activities that are permissible for bank holding companies under sections 225.25(b)(1) and 225.25(b)(5) of
Regulation Y (12 C.F.R. 225.25(b)(1) and (5)). Company would provide the proposed activity in addition to
the previously approved commercial finance activities, with Company serving customers nationwide
from offices to be established in New York, New
York.
Applicant, with consolidated assets of $90.0 billion,2
is the second largest banking organization in New
York. 3 It operates seven subsidiary banks and engages
in a broad range of permissible nonbanking activities
in the United States and abroad.
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been duly published, 52 Federal Register
2443 (1987). The Securities Industry Association
("SIA"), a trade association of the investment banking industry, has filed a written comment opposing the
application on the basis of its view that the proposal
would violate the Glass-Steagall Act and should not be
approved under the BHC Act.
Under this proposal, Company would act for issuers
as an underwriter of commercial paper, purchasing
commercial paper for resale to institutional investors
such as banks, insurance companies, mutual funds and
nonfinancial businesses. In addition, Company may
place commercial paper as agent for issuers and advise
issuers as to rates and maturities of proposed issues
that are likely to be accepted in the market, activities
previously approved in Bankers Trust. The minimum
denomination of commercial paper offered and purchased by Company would be $250,000. Company
may also purchase commercial paper, typically commercial paper that the Company had previously underwritten, for resale in the secondary market as a dealer.
The proposed activities differ from those authorized
for Bankers Trust in that Applicant would underwrite
and deal in commercial paper as a principal.
1. Applicant has committed that Company's gross revenue from
commercial paper activity covered by section 20 will not exceed 5
percent of Company's total gross revenue during any year. In addition, to limit Company's market share, the amount of commercial
paper outstanding at any time underwritten or placed by Company will
not exceed 5 percent of the average amount of dealer-placed commercial paper outstanding during the prior four calendar quarters, and the
amount of commercial paper held in inventory by Company on any
day will not exceed 5 percent of the average amount of dealer-placed
commercial paper outstanding during the prior four calendar quarters.
2. Asset data are as of September 30, 1986.
3. Rank is as of June 30, 1986.
368
Federal Reserve Bulletin • May 1987
Glass-Steagall Act Analysis
The SIA asserts that consummation of the proposal
would result in a violation of section 20 of the GlassSteagall Act for the same reasons it alleged in the
Bankers Trust case. 4 Because Company is affiliated
with a member bank (Chase Manhattan Bank, N.A.),
the Board may not approve the proposal if upon
consummation Company would be "engaged principally" in the "flotation, underwriting, public sale, or
distribution" of commercial paper ("underwriting and
dealing in") within the meaning of section 20 of the
Glass-Steagall Act (12 U.S.C. § 377). The SIA maintains that Company would be "engaged principally" in
underwriting and dealing in commercial paper under
section 20 on the basis that the term "principally"
denotes any substantial, significant, regular or nonincidental activity.
In Bankers Trust the Board concluded that, even if
placement of commercial paper were deemed to constitute an activity covered by section 20 of the GlassSteagall Act, Bankers Trust's commercial lending subsidiary would not be "engaged principally" in underwriting and dealing in securities because the subsidiary's activity would not be substantial under a 5
percent limit on the subsidiary's gross income from its
commercial paper activities and a 5 percent limit on its
market share. As noted, Company will restrict its
commercial paper activities so as not to exceed these 5
percent limits. Accordingly, and for the reasons set
forth in the Bankers Trust order, the Board concludes
that Company would not be "engaged principally" in
activities covered by section 20 of the Glass-Steagall
Act so long as Company adheres to the 5 percent
limitations on its commercial paper functions. 5
Bank Holding Company Act Analysis
In every application under section 4(c)(8) of the BHC
Act, the Board must find that the proposed activity is
"so closely related to banking . . . as to be a proper
incident thereto." This statutory standard requires
that two separate tests be met for an activity to be
4. Section 20 provides that
. . . no member bank shall be affiliated . . . with any . . . organization
engaged principally in the issue, flotation, underwriting, public sale, or
distribution at wholesale or retail or through syndicate participation of
stocks, bonds, debentures, notes, or other securities. . . .
5. In Bankers Trust, the Board ruled that a bank affiliate that places
commercial paper acting solely as agent of the issuers and that does
not offer the paper to the public is not engaged in underwriting or
distributing commercial paper for purposes of section 20. Although it
appears that Company may not make a public offer of commercial
paper, Company would purchase commercial paper for its own
account for resale, an activity that the Board has regarded as section
20 activity.
permissible for a bank holding company. First, the
Board must determine that the activity is, as a general
matter, "closely related to banking." Second, the
Board must find in a particular case that the performance of the activity by the applicant bank holding
company may reasonably be expected to produce
public benefits that outweigh possible adverse effects.
The SIA contends that the proposed activity is not
closely related to banking under the BHC Act and
would result in substantial risk and conflicts of interest
not outweighed by public benefits for the same reasons
it asserted in its protest to Bankers Trust's application.
A. Closely Related to Banking Analysis
Based on guidelines established in the National Courier decision, a particular activity may be found to meet
the "closely related to banking" test if it is demonstrated that:
(1) banks generally have in fact provided the proposed activity;
(2) banks generally provide services that are operationally or functionally so similar to the proposed
activity so as to equip them particularly well to
provide the proposed activity; or
(3) banks generally provide services that are so
integrally related to the proposed activity as to
require their provision in a specialized form. 6
The Board concludes that underwriting and dealing in
commercial paper is closely related to banking on the
same basis on which the Board concluded in Bankers
Trust that acting as placement agent and adviser to
issuers of commercial paper is closely related to
banking, that is, because banks provide services that
are operationally and functionally so similar to the
proposed services that banking organizations are particularly well equipped to provide the proposed services. The Board has previously testified before Congress in favor of permitting bank holding companies to
underwrite and deal in commercial paper. In the
Board's view, the proposed underwriting and dealing
activity represents a natural extension of commercial
lending activities traditionally conducted by banks,
involving little additional risk or new conflicts of
interest, and potentially yielding significant public
benefits in the form of increased competition and
convenience.
6. The National Courier guidelines are not the exclusive basis for
finding a proposed activity closely related to banking. 516 F.2d at
1237. The Board will consider any other basis that may demonstrate
that the activity has a reasonable or close relationship to banking.
49 Federal Register 806 (1984).
Legal Developments
Underwriting and dealing in commercial paper is an
activity that is functionally related to the traditional
commercial banking function of providing short-term
loans to corporations for operating expenses and
places the underwriter and dealer in the role of acting
as a financial intermediary. (See S. Rep. No. 560, 98th
Cong., 2d Sess. 17 (1984)). Although commercial paper technically is a security for purposes of the GlassSteagall Act, this kind of instrument has many of the
characteristics of a traditional commercial loan. A
commercial loan in its traditional form represents a
short-term extension of credit to a business to finance
working capital needs. (E.g., United States v. Connecticut Nat'l Bank, 418 U.S. 656, 665 (1974)). Because of its short term nature, commercial paper is
customarily held to maturity—like a commercial loan.
Because of its large denominations, commercial paper
is generally purchased only by large, financially sophisticated institutions, such as banks and money
market mutual funds, who typically hold the paper to
maturity. Under the limitations established for the
conduct of this activity, Applicant will sell commercial
paper only to these large institutions. The Applicant's
role will be, in effect, that of a financial intermediary
arranging short-term commercial loans from the buyers of commercial paper to the issuers of the paper.
This activity is functionally and operationally similar
to the role of a bank that arranges a loan participation,
and banks are particularly well suited to assume this
role as a result of their traditional commercial lending
functions.
In this regard, the Board notes that the evaluation
and credit analysis that would be performed in connection with underwriting commercial paper is functionally and operationally similar to the evaluation and
credit analysis banks conduct when making commercial loans. In addition, Company's role in advising
issuers in structuring an offering and contacting potential purchasers is functionally and operationally similar
to the bank's role in advising customers and arranging
loan participations and syndications.
The Board also notes that underwriting and dealing
in commercial paper is functionally and operationally
similar to the role of a bank in discounting commercial
paper to provide liquidity to its issuers, underwriting
and dealing in money market instruments and securities that member banks are eligible to underwrite and
deal in, advising commercial paper issuers and assisting them in placement of their notes, and generally
assessing credit and interest rate risk.
B. Proper Incident to Banking Analysis
In order to approve an application to engage in a
nonbanking activity under section 4(c)(8), the Board
369
must also determine that a proposed activity is a
"proper incident" to banking by determining whether
the performance of the activity by the applicant bank
holding company may reasonably be expected to produce public benefits, such as greater convenience,
increased competition, or gains in efficiency, that
outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interest, or unsound banking
practices. 12 U.S.C. § 1843(c)(8). Based upon the facts
of record and for the reasons and subject to the
limitations set out below, the Board finds that consummation of this proposal may reasonably be expected to
result in public benefits that outweigh possible adverse
effects.
Public Benefits
In Bankers Trust the Board concluded that Applicant's
commercial paper placement and advisory activities
would produce significant benefits to the public in the
form of increased competition in the commercial paper
market, greater convenience to customers of commercial paper services and gains in efficiency in the
provision of service. As in Bankers Trust, Company
will offer commercial paper activity on a nationwide
basis. In light of the fact that currently the commercial
paper market is dominated by a small number of
dealers, the expansion of Applicant's commercial paper activities can only foster competition in that market. Moreover, the establishment of this activity in a
holding company subsidiary will allow Applicant to
provide greater convenience to customers of the service and to offer the service more efficiently on a
nationwide scale.
The Board considers these two factors—increased
competition and more convenient service to investors
and borrowers—to be substantial and important public
benefits. In this regard, the Board notes that the
expansion of commercial paper activity to include
underwriting and dealing will enhance these public
benefits by permitting Applicant to offer a fuller range
of services to customers in competition with other
providers.
Adverse Effects
The Board in Bankers Trust exhaustively considered
whether adverse effects would be associated with a
limited amount of commercial placement performed
by that bank holding company affiliate under the
prudential framework adopted by Bankers Trust. The
Board concluded that under the safeguards proposed
in that case there was no evidence that the activity
would be likely to result in any significant adverse
370
Federal Reserve Bulletin • May 1987
effects. Although Chase's proposal is similar to the
Bankers Trust application, the fact that Company
would act as a principal to underwrite and deal in
commercial paper is a significant differentiating factor
that particularly bears on the Board's determination
whether the proposed activities constitute a proper
incident to banking. The protestant maintains that the
proposal would result in unsound banking practices,
because in acting as a principal to underwrite and deal
the subsidiary would place its own funds at risk and
incentives for conflicts of interest could consequently
arise. The Board, however, finds that any additional
possible concerns that arise as a result of the expansion of activity to include underwriting and dealing as
a principal are substantially mitigated by the following
factors.
As a preliminary matter, the Board notes that the
proposed activities are substantially similar to commercial lending and other operations presently conducted safely and soundly by member banks and
involve a security that member banks may invest in as
principal. As noted above, the Board believes the
proposed activity involves little additional risk or new
conflicts of interest.
The Board recognizes that, to the limited extent
Company engages in underwriting and dealing in commercial paper, Company would assume the risk of loss
should the issuer of the paper default or should the
market for the paper decline before resale. Nevertheless, the Board believes that the risk of loss to Company as a result of this proposal is not excessive or
inconsistent with prudent banking standards.
In the Board's view, given the unique nature of the
recognized commercial paper market, the risk of loss
resulting from buying and selling for one's own account in that market is minimal. Company would only
underwrite and deal in commercial paper sold in the
recognized market—prime obligations in minimum denominations of $250,000 that are exempt from the
registration requirements of the Securities Act. Only
the nation's largest and financially strongest corporations borrow funds in the commercial paper market. In
addition, the market has developed a number of mechanisms to minimize the risk of default on obligations
sold in the market, such as credit ratings for issuers by
independent rating services and the use of back-up
lines of credit or letters of credit to ensure repayment.
The minimal risk of loss is demonstrated by the fact
that historically the rate of default by users of commercial paper in the recognized market has been negligible.7 An additional indicator of low risk is the fact that
the rate of interest paid on commercial paper typically
has been only slightly higher than the rate paid on U.S.
government obligations with similar maturities. In
addition, Applicant possesses experience with management of risk through careful credit evaluation and
risk reduction techniques such as hedging, diversification and other precautions applicable to the proposed
activities.
Moreover, as discussed in Bankers Trust, possible
adverse effects are also mitigated by the functional and
operational insulation of the proposed activities from
Applicant's banking and other operations and the
limitation on the amount of underwriting and dealing
Applicant proposes to adopt for purposes of the "engaged principally" cap under section 20 of the GlassSteagall Act. The proposed activities would only be a
minor part of the business of a well-capitalized, separate subsidiary of Applicant. Under these limitations
designed to maintain the separateness of Company
from Applicant's other affiliates, the Board believes
that risk to Applicant's banking subsidiaries and other
affiliates is substantially minimized.
The Board also finds that Company's limited involvement in commercial paper activities is not likely
to damage public confidence in Applicant's subsidiary
banks. Although Company would underwrite and deal
in commercial paper for its own account, as explained
above the risk of loss inherent in this activity is not
excessive. In addition, as in the Bankers Trust decision, Company will not market commercial paper to
the public generally but only in a wholesale market
dominated by institutional purchasers. Nor is there
any realistic likelihood that Applicant will make unsound loans to Company if Company were to encounter financial difficulties. Although Company would
invest its own funds in the commercial paper it underwrites and deals in, this commercial paper would only
constitute an insubstantial portion of Company's assets. Given the other safeguards described in the
Bankers Trust Order, the Board does not believe that
this potential abuse is significant.
Moreover, as described below Chase has adopted
precisely the same framework of limitations on interrelationships with affiliates and customers that Bankers
Trust proposed and that, as set forth in that order,
serve to contain risk and prevent conflicts of interest.
Among other things, those limitations, which are patterned after a prudential framework approved by the
Board for conducting commercial paper activity in the
7. The short-term nature of commercial paper also provides substantial protection against loss. Serious financial problems are unlikely to develop at the large, well-known corporations that issue commercial paper within the 30 days that the paper typically would be
outstanding. In addition, market risk is mitigated by the practice in the
commercial paper market of "pre-selling" — i.e., not issuing paper
until potential purchasers have been contacted on a preliminary basis
and have indicated an interest in purchasing at the posted rates.
Legal Developments
bank itself,8 place strong restrictions on affiliates'
extending credit relating to Company's commercial
paper, purchasing or advising customers with respect
to the commercial paper, and other matters. In addition, Chase will adopt limitations on transfers of assets
between its banking and other affiliates other than on a
non-preferential, arms-length basis contained in the
proposed Section 23B of the Federal Reserve Act. 9
In addition, to address the possibility of unsound
loans, Applicant has proposed a number of lending
restrictions. Neither Applicant nor any affiliate would
provide any letter of credit or other guarantee to
support commercial paper underwritten, dealt in or
placed by Company. No loans would be made to
issuers that are the functional equivalent of purchasing
commercial paper for the account of an affiliate. All
affiliates would assure themselves that any advances
to an issuer of commercial paper are not used to repay
the paper or to cover any unsold portion of a commercial paper issue underwritten, placed or dealt in by
Company. In the Board's view, the possibility of
unsound loans from an affiliate would be effectively
addressed if, under these restrictions and this Order,
neither Applicant nor its subsidiaries, including Company, may lend, issue or enter into a letter of credit, or
similar credit facility that might be viewed as enhancing the creditworthiness or marketability of commercial paper underwritten, placed or dealt in by Company.
Moreover, as discussed in Bankers Trust, any extensions of credit by a banking affiliate would be subject
to the limitations of section 23A of the Federal Reserve Act (12 U.S.C. § 371c). The Board also notes
that, given the small commissions and spreads typical
of commercial paper underwriting, dealing and placement and the fact that the commercial paper operation
will not constitute a substantial activity of Company, it
would not be reasonable for unsound credit to be
extended in support of an issuer-customer of Company.
Based on the record in this case, and for the reasons
described in greater detail in the Bankers Trust Order,
the Board finds that Company's conduct of these
activities, commenced de novo, is not likely to result
in unfair or decreased competition, undue concentration of resources, or unsound banking practices. In the
Board's view, the limitations adopted by Chase, together with the other facts and circumstances of this
application, including the lack of excessive risk in the
8. Statement Concerning Applicability of the Glass-Steagall Act to
the Commercial Paper Placement Activities of Bankers Trust Company (June 4, 1985). The Board's decision was upheld by the U.S. Court
of Appeals for the District of Columbia Circuit in Securities Industry
Ass'n v. Board of Governors of the Federal Reserve System, 807 F.2d
1052 (1986), petition for certiorari pending, No. 86-1429.
9. 130 Cong. Rec. SI 1166-67 (daily ed. September 13, 1984).
371
recognized commercial paper market, would effectively minimize the possibility of any significant adverse
effects.
The Board intends to keep under active consideration the desirability of the framework for the conduct
of the proposed commercial paper activity adopted in
Bankers Trust and in this case and may revisit the
issue of whether these limitations are appropriate
based on its consideration of the pending applications
by Citicorp, J.P. Morgan, Bankers Trust and other
bank holding companies to underwrite and deal in
commercial paper as well as other types of securities.
Accordingly, and for the reasons set forth in Bankers Trust, the Board concludes there is no evidence
that Applicant's conduct of the activities through
Company is likely to result in any significant adverse
effects. Financial and managerial considerations are
also consistent with approval.
Based on the foregoing and other facts or record, the
Board concludes that this proposal as limited by
Applicant is consistent with section 20 of the GlassSteagall Act and may reasonably be expected to result
in public benefits that outweigh possible adverse effects. Accordingly, the Board finds that Applicant may
conduct the proposed activities to the extent and in the
manner described in this Order consistent with section
20 of the Glass-Steagall Act and section 4(c)(8) of the
BHC Act. The Board's approval of this application
extends only to commercial paper underwriting, dealing, placement and advisory activity conducted within
the following limitations proposed by Applicant for
Company and Applicant's subsidiary banks and other
subsidiaries, and the conduct of this activity in any
manner other than as described below and in this
Order, or of other activity, is not within the scope of
the Board's approval here and is not authorized for
Company:
1. Company will underwrite, place or deal in only
commercial paper that is prime quality, short-term
(with maturities not exceeding nine months), in
minimum denominations of at least $250,000, and
that is exempt from the registration and prospectus
requirements of the Securities Act of 1933 pursuant
to section 3(a)(3) of that Act.
2. The gross revenues derived from Company's
commercial paper underwriting, placement and
dealing service will not in any year exceed 5 percent
of Company's gross revenues.
3. Chase will also limit the amount of commercial
paper outstanding at any time underwritten or
placed by Company to 5 percent of the average
amount of dealer-placed commercial paper outstanding during the prior four calendar quarters, and
the amount of commercial paper held in inventory
by Company on any day will not exceed 5 percent of
the average amount of dealer-placed commercial
372
Federal Reserve Bulletin • May 1987
paper outstanding during the prior four calendar
quarters.
4. Neither Applicant nor any subsidiary of Applicant, including Company, will lend, issue or enter
into a stand-by letter of credit, asset purchase
agreement, indemnities, insurance or other facility
that might be viewed as enhancing the creditworthiness or marketability of commercial paper underwritten, placed or dealt in by Company.
5. Neither Company nor any of its affiliates will
make loans to issuers of commercial paper placed or
underwritten by Company that are the functional
equivalent of purchasing the paper for the account
of its affiliate. Thus, any credit extended by any of
these companies to the issuer will be under different
terms, at different times, and for different purposes
than the paper being underwritten or placed. It
would be clear that any such credit is for different
purposes if there is documentary evidence of, for
example, substantial participation in the credit by
other lenders or that the loan is for a documented
special purpose, such as equipment financing, plant
expansion, or inventory or receivables.
6. Company and its affiliates will assure themselves
that any advances to an issuer of commercial paper
underwritten or placed by Company are not used to
repay the paper or to cover any unsold portion of a
commercial paper issue underwritten or placed by
Company.
7. Neither Applicant nor any of Company's affiliates
will purchase for its own account commercial paper
underwritten, placed or dealt in by Company.
8. Applicant's subsidiary banks will not purchase
commercial paper underwritten, placed or dealt in
by Company for accounts managed or advised by
their trust departments and neither the banks nor
any of their affiliates will purchase commercial
paper underwritten, placed or dealt in by Company
for any other accounts they advise or for which they
have investment discretion.
9. No affiliate of Company will provide investment
advice to the purchasers of commercial paper underwritten, placed or dealt in by Company and will not
advertise or distribute sales literature concerning
such commercial paper. Moreover, where Company
or any of its affiliates has a lending relationship with
an issuer of commercial paper being underwritten,
placed or dealt in by Company, Company will at a
minimum disclose the existence of that relationship
to each purchaser of that issuer's paper. Any disclosure made by Company will also describe the difference between Company and Applicant's subsidiary
banks.
10. Company will not have officers, directors, or
employees in common with Applicant's subsidiary
banks.
11. No lending affiliate of Company will disclose to
Company any non-public customer information concerning an evaluation of the financial condition of an
issuer whose paper is underwritten, placed or dealt
in by Company or of any other customer of Company, except as expressly required by securities law or
regulation.
The Board's determination is subject to all of the
conditions set forth in the Board's Regulation Y,
including those in sections 225.4(d) and 225.23(b), and
to the Board's authority to require modification or
termination of the activities of the holding company or
any of its subsidiaries as the Board finds necessary to
ensure that the commercial paper activity of Company
is consistent with safety and soundness and conflict of
interest considerations and to assure compliance with
the provisions of the BHC Act and the Board's regulations and orders issued thereunder, or to prevent
evasion thereof. 10
In its consideration of this case, the Board has noted
that on March 10, 1987, the Committee on Banking,
Housing and Urban Affairs of the United State Senate
voted favorably legislation that, if enacted, would
prohibit Board approval from March 6, 1987, until one
year after the date of enactment of the legislation, of
any application, such as the present proposal, that
would permit a bank holding company to engage in the
underwiting or public sale of securities on the basis
that it was not "engaged principally" in such activity
within the meaning of section 20 of the Glass-Steagall
Act. This moratorium legislation, however, has not yet
been enacted into law.
Accordingly, the Board is required as provided in
existing law to act on the application within mandated
time periods and in accordance with the applications
processing schedule prescribed by Regulation Y.
Moreover, the instant application, as noted, complies
with existing law and the basic framework established
by the Board in its approval of the Bankers Trust
commercial paper proposal and does not raise the
more complex issues involved in other broader section
20 applications upon which the Board has conducted
hearings.
While the Board believes it must proceed to reach a
decision on this application, the Board calls to Applicant's attention that it may be required by subsequent
Congressional action to cease its commercial paper
underwriting activities approved in this Order. The
Board retains jurisdiction over the application to act to
carry out the requirements of any legislation adopted
10. As provided in section 225.23(b)(1), no reorganization of Company, such as the establishment of a subsidiary of Company to
conduct the approved activity or the transfer to Company of authorized operations conducted in other entities, may be consummated
without prior Board approval.
Legal Developments
by Congress that would affect Applicant's conduct of
commercial paper underwriting activities under this
Order and the Bank Holding Company Act.
This transaction shall not be consummated later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board, or by the Federal Reserve Bank of New
York, pursuant to delegated authority.
By order of the Board of Governors, effective
March 18, 1987.
Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, and Heller. Absent and not voting:
Chairman Volcker.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
Orders Issued Under Sections 3 and 4 of the
Bank Holding Company Act
Bank of N e w England Corporation
Boston, Massachusetts
Order Approving Acquisition of a Bank Holding
Company
Bank of New England Corporation, Boston, Massachusetts, a bank holding company within the meaning
of the Bank Holding Company Act (12 U.S.C. § 1841
et seq.) ("Act"), has applied for the Board's approval
under section 3 of the Act, to acquire The Conifer
Group, Inc., Worcester, Massachusetts ("Conifer"),
and thereby indirectly acquire its eight subsidiary
banks. 1 In order to effect the acquisition, Intermediate
Corporation, a wholly owned subsidiary of Applicant,
has applied to become a bank holding company by
merging with Conifer.
Applicant also has applied under section 4(c)(8) of
the Act (12 U.S.C. § 1843(c)(8)) to acquire Conifer
Life Insurance Company, Phoenix, Arizona, a company that underwrites, as a reinsurer, credit-related life
and accident insurance directly in connection with
loans made by Conifer's subsidiary banks. The Board
has determined this activity to be closely related to
banking and permissible for bank holding companies.
12 C.F.R. § 225.23(b)(8)(i).
Notice of the applications, affording an opportunity
for interested persons to submit comments, has been
1. The banks to be acquired are as follows: Patriot Bank, Boston,
Massachusetts; Bank of Cape Cod, Falmouth, Massachusetts; Berkshire Bank & Trust Company, Pittsfield, Massachusetts; Essexbank,
Peabody, Massachusetts; Guaranty Bank & Trust Company, Worcester, Massachusetts; Hampshire National Bank, South Hadley, Massachusetts; Plymouth-Home National Bank, Brockton, Massachusetts;
and Union National Bank, Lowell, Massachusetts.
373
given in accordance with sections 3 and 4 of the Act.
The time for filing comments has expired, and the
Board has considered the applications and all comments received in light of the factors and considerations set forth in sections 3(c) and 4 of the Act
(12 U.S.C. §§ 1842(c) and 1843).
Applicant operates 11 banking subsidiaries located
in Massachusetts, Maine, Connecticut, and Rhode
Island. Applicant is the second largest commercial
banking organization in Massachusetts, controlling
deposits of $6.0 billion, representing 14.2 percent of
the total deposits in commercial banks in Massachusetts. 2 Applicant is the largest commercial banking
organization in Connecticut, controlling deposits of
$6.0 billion which represents 27.1 percent of total
deposits in commercial banks in Connecticut. Applicant is the third largest banking organization in both
Maine and Rhode Island, and controls 15.6 percent
and 11.1 percent, respectively, of total commercial
bank deposits in those states. 3 Conifer is the sixth
largest commercial banking organization in Massachusetts, with eight banking subsidiaries that control
aggregate deposits of $3.4 billion, representing 7.4
percent of the total deposits in commercial banks in
Massachusetts. Upon consummation of the proposed
acquisition and all planned divestitures, Applicant
would become the largest commercial banking organization in Massachusetts, and its share of total deposits
in commercial banks would increase to $9.3 billion,
representing 21.7 percent of deposits in that state. In
the Board's view, consummation of this proposal
would have no significant adverse effect upon the
concentration of commercial banking resources in
Massachusetts.
Applicant and Conifer compete directly in the Boston, New Bedford, Springfield, Amherst-Northampton, Cape Cod, Worcester, Athol, and North AdamsWilliamstown, Massachusetts banking markets.
In two of these markets, Athol and North AdamsWilliamstown, Applicant has committed to divest either its offices or Conifer's offices in order to mitigate
the adverse competitive effects of its proposal. 4 Applicant has committed that all of the proposed divestitures will take place prior to the date of consummation
of its proposal. 5 On the basis of these divestiture
2. Banking deposit data are as of December 31, 1986, unless
otherwise specified.
3. Statewide data for Massachusetts, Connecticut, Maine, and
Rhode Island are reported as of June 30, 1986.
4. Applicant has agreed to divest Conifer's sole branch in the Athol
market and its own two branches in the North Adams-Williamstown
market to First Service Bank, Leominster, Massachusetts. First
Service Bank currently has no offices in either of these market areas.
5. The Board's Policy with regard to divestitures intended to
remedy the anticompetitive effects resulting from a merger or acquisition proposal requires that divestitures must occur on or before
consummation. Barnett Banks of Florida, Inc., 68 FEDERAL RESERVE
B U L L E T I N 1 9 0 ( 1 9 8 2 ) ; InterFirst
BULLETIN 2 4 3 (1982).
Corporation,
6 8 F E D E R A L RESERVE
374
Federal Reserve Bulletin • May 1987
commitments, the Board concludes that consummation of the proposal would have no significant adverse
effect in either of these banking markets. 6
Although consummation of this proposal would
eliminate some existing competition between Applicant and Conifer in the remaining markets, certain
facts of record mitigate the adverse competitive effects
of the proposal in these markets.
Applicant is the second largest commercial banking
organization in the Boston banking market, 7 controlling $4.1 billion in deposits, representing 14.0 percent
of total deposits in commercial banks in the market.
Conifer is the sixth largest banking organization in the
market, controlling $1.7 billion in deposits, representing 5.8 percent of total deposits in commercial banks in
the market. The market is moderately concentrated
with a Herfindahl-Hirschman Index ("HHI") of
1276.8 Upon consummation of its proposal, Applicant
would remain the second largest commercial banking
organization in the market, with a market share of
approximately 19.8 percent. Over 50 commercial
banking organizations would continue to operate in the
market after consummation of the proposal and the
HHI would increase by only 162 points to 1438.
In the New Bedford market, 9 Applicant and Conifer
are the smallest commercial banking organizations
controlling together less than two percent of the deposits in commercial banks in the market.
In the Springfield banking market, 10 Applicant is the
largest of seven commercial banking organizations,
controlling deposits of $799.6 million, representing
36.1 percent of total deposits in commercial banks in
that market. Conifer is the smallest commercial bank6. In consideration of Applicant's divestiture proposals, the Department of Justice, Antitrust Division has decided not to challenge
this transaction.
7. The Boston banking market consists of the Boston Ranally
Metropolitan Area ("RMA"), except the N e w Hampshire towns of
Brentwood, Chester and Derry, but including the Massachusetts
towns of Ayre, Berlin, Groton, Harvard, Pepperell, and Shirley, and
those portions of Bellingham, Carver, Lakeville, Middleborough, and
Plymouth not already included in the RMA.
8. Under the revised Department of Justice Merger Guidelines
(49 Federal Register 26,823) a market in which the post-merger HHI is
between 1000 and 1800 is considered moderately concentrated. In
such markets, the Department is likely to challenge a merger that
increases the HHI by more than 50 points. The Department has
informed the Board that a bank merger or acquisition generally will
not be challenged (in the absence of other factors indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the
merger increases the HHI by at least 200 points. The Justice Department has stated that the higher than normal HHI thresholds for
screening bank mergers for anticompetitive effects implicitly recognizes the competitive effect of limited purpose lenders and other nondepository financial entities.
9. The N e w Bedford market includes New Bedford RMA and the
towns of Wareham and portions of Freetown not in RMA.
10. The Springfield banking market is defined by Springfield RMA,
less the town of Bremfield plus the towns of Blandford, Chester,
Granville, Hardwick, Huntington, Montgomery Otis, Tolland Ware,
Warren, and Worthington.
ing organization in the Springfield banking market,
controlling $54.9 million in deposits, representing 2.5
percent of the deposits in commercial banks in the
market. Upon consummation of this transaction, Applicant would remain the largest commercial banking
organization in Springfield, and would control 38.6
percent of the deposits in the commercial banks in the
market. The four-firm concentration ratio would remain unchanged and the HHI in Springfield would
increase by 179 points to 2441.
In the Amherst-Northampton banking market, 11 Applicant is the second largest of six commercial banking
organizations, controlling $66.3 million in deposits,
which represents 27.3 percent of total deposits in
commercial banks in the market. Conifer is the fifth
largest commercial banking organization in AmherstNorthampton, controlling $16.5 million in deposits,
which represents 6.8 percent of total deposits in commercial banks in that market. The Amherst-Northampton banking market is highly concentrated with the
four largest commercial banks controlling 87 percent
of deposits in that area. Following acquisition of
Conifer, Applicant would remain the second largest
commercial banking organization in the market, controlling 34.1 percent of the deposits in commercial
banks in the market. The four-firm concentration ratio
would increase by 6.9 points to 93.9 and the HHI for
the market would increase by 373 points to 2854.
In the Cape Cod banking market, 12 Applicant is the
third largest of seven commercial banking organizations, controlling $137.9 million in deposits, which
represents 13.1 percent of total deposits in that area.
Conifer is the fourth largest commercial banking organization in the Cape Cod market, controlling $122.4
million in deposits, which represents 11.7 percent of
total deposits in commercial banks. The Cape Cod
market is moderately concentrated with a four-firm
concentration ratio of 79.8 percent. Upon consummation of this proposal, Applicant would become the
second largest commercial banking organization, controlling $260.3 million in deposits, representing 24.8
percent of the market share. The four-firm concentration ratio in Cape Cod would remain unchanged, and
the HHI would increase by 305 points to 2343.
In the Worcester banking market, 13 Applicant is the
fourth largest of nine commercial banking organiza-
11. The Amherst-Northampton banking market is comprised of
Amherst-Northampton RMA plus the towns of Chesterfield, Cummington, Deerfield, Goshen Plainfield, Shutesbury, Westhampton,
and Whatley.
12. The Cape Cod banking market encompasses the Cape Cod
RMA consisting of Barnstable County.
13. The Worcester banking market includes all of the Worcester
RMA.
Legal Developments
tions, controlling aggregate deposits of $291.1 million,
representing 14.2 percent of the total deposits in
commercial banks in the market. Conifer is the second
largest commercial banking organization in the market, with $494.1 million in deposits, representing 24.2
percent of the total deposits in commercial banks. The
Worcester banking market is considered concentrated,
with the four largest commercial banking organizations in the market controlling 87.9 percent of the total
deposits in commercial banks. After consummation of
the proposal, Applicant would control 38.4 percent of
the total deposits in commercial banks. The four-firm
concentration ratio would remain unchanged, and the
HHI in the Worcester market would increase by 688
points to 2963.
Although consummation of this proposal would
eliminate some existing competition between Applicant and Conifer in the Springfield, Amherst-Northampton, Cape Cod and Worcester banking markets,
numerous other commercial banking organizations
would continue to operate in each market after consummation of the proposal. In addition, the Board has
considered the presence of thrift institutions in these
banking markets in its analysis of this proposal. These
institutions account for over 50 percent of the total
deposits in each of the markets. The Board previously
has indicated that thrift institutions have become, or
have the potential to become, major competitors of
commercial banks. 14 Thrift institutions already exert a
considerable competitive influence in the market as
providers of NOW accounts and consumer loans, and
many are engaged in the business of making commercial loans. Based upon the number, size, market
shares and commercial lending activities of thrift institutions in their markets, the Board has concluded that
thrift institutions exert a significant competitive influence that mitigates the anticompetitive effects of this
proposal in the Springfield, Amherst-Northampton,
Cape Cod, and Worcester, Massachusetts markets.15
On the basis of the above facts and other facts of
record, the Board concludes that consummation of
Applicant's proposal would not have a significantly
adverse effect on existing competition in any relevant
market.
14. National City Corporation, 70 FEDERAL RESERVE BULLETIN
743 (1984); The Chase Manhattan Corporation, 70 FEDERAL RESERVE
B U L L E T I N 5 2 9 ( 1 9 8 4 ) ; NCNB
Bancorporation,
7 0 FEDERAL RESERVE
BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL
RESERVE BULLETIN 802 (1983); First Tennessee Corporation,
69
FEDERAL RESERVE B U L L E T I N 2 9 8 ( 1 9 8 3 ) .
15. The following data indicate the market share and the change in
the HHI if 50 percent of the deposits controlled by thrift institutions
were included in the calculation of market concentration:
In the Springfield market, Applicant and Conifer would control 21.3
percent and 1.5 percent of total market deposits, respectively. The
HHI would increase by 62 points to 1073 upon consummation of the
proposal.
375
The Board also has considered the effects of Applicant's proposal on probable future competition in the
markets in which Applicant and Conifer do not both
compete. 16 In light of the market concentration, the
number of probable future entrants into those markets,
and the attractiveness of a given market for entry on a
de novo basis, the Board concludes that consummation of this proposal would not have a significant
adverse effect on probable future competition in any
relevant market.
The Board previously has indicated that a bank
holding company should serve as a source of financial
strength to its subsidiaries. The Board believes the
financial resources of Applicant are consistent with
approval of this proposal, especially in light of Applicant's commitment to increase its capital. The Board
also recognizes that Applicant's proposed acquisition
of Conifer involves an exchange of shares with no
assumption of additional debt.
The Board also has considered Applicant's managerial resources, particularly with regard to its previous
violations of the Currency and Foreign Transactions
Reporting Act (31 U.S.C. §5311 et seq.) ("CFTRA").
In connection with two earlier proposals, the Board
reviewed Applicant's conviction in March, 1986 of 31
counts of CFTRA violations.17 Based upon all information available to it at that time, the Board concluded
that, despite these indictments and CFTRA violations,
overall managerial considerations were favorable. In
support of that determination, the Board noted that
Applicant had discovered the CFTRA violations itself
through an internal audit, had alerted regulatory authorities to the violations, and had cooperated fully
with law enforcement agencies. The Board also noted
that Applicant and its subsidiaries undertook comprehensive remedial and preventive actions. In addition,
the Board consulted appropriate law enforcement
agencies and considered Applicant's past record of
compliance with the law in its determination.
In the Amherst-Northampton banking market, Applicant and Conifer would control 13.2 percent and 3.3 percent of total market
deposits, respectively. The HHI would increase by 87 points to 1809
upon consummation of the proposal.
In the Cape Cod banking market, Applicant and Conifer would
control 8.0 percent and 7.2 percent of total market deposits, respectively. The HHI would increase by 115 points to 1124 upon consummation of the proposal.
In the Worcester banking market, Applicant and Conifer would
control 9.4 percent and 16.0 percent of total market deposits, respectively. The HHI would increase by 298 points to 1465 upon consummation of the proposal.
16. "Policy Statement of the Board of Governors of the Federal
Reserve System for Assessing Competitive Factors Under the Bank
Merger Act and the Bank Holding Company Act," 47 Federal
Register 9017 (March 3, 1982).
17. Bank of New England Corporation,
72 FEDERAL RESERVE
BULLETIN 713 (1986); Bank of New England Corporation, 72 FEDERAL RESERVE B U L L E T I N 4 2 ( 1 9 8 6 ) .
376
Federal Reserve Bulletin • May 1987
After consummation of the proposals discussed
above, the Office of the Comptroller of the Currency
("OCC") discovered eleven additional CFTRA violations at Bank of New England, N.A., Applicant's lead
subsidiary bank, and 274 additional violations at Applicant's Connecticut Bank and Trust subsidiary. The
OCC's report also showed numerous "technical" violations at two other of Applicant's subsidiary banks.
Applicant since has assured the Board that it has
implemented extensive CFTRA compliance procedures at all subsidiary banks sufficient to resolve these
reporting violations. The Board notes, however, that
Applicant has had uneven success thus far in achieving
that objective. Nonetheless, the Board has reviewed
the comprehensive internal audit recently compiled by
Applicant regarding CFTRA compliance by each of its
subsidiary banks over the past five years. 18 The OCC
does not deem the recent CFTRA violations of Applicant's subsidiary banks as indicative of serious management problems and has stated that Applicant's
overall compliance with CFTRA is satisfactory. On
the basis of this statement, Applicant's own assurances, and all other facts of record, the Board concludes that Applicant's managerial resources are consistent with approval.
The Board believes that considerations relating to
the convenience and needs of the communities to be
served by Applicant's and Conifer's subsidiary banks
also are consistent with approval of this application.
Applicant also has applied, pursuant to section
4(c)(8) of the Act to acquire Conifer Life Insurance
Company, Phoenix, Arizona ("Company"). Company
engages in underwriting, as a reinsurer, of creditrelated life and accident insurance directly in connection with loans made by Conifer's subsidiary banks.
Applicant does not currently engage in these activities,
so that its acquisition of Company will have no adverse effect on existing competition. Moreover, there
is no evidence in the record to indicate that approval of
this proposal would result in undue concentration of
resources, decreased or unfair competition, conflicts
of interests, unsound banking practices, or other adverse effects. Accordingly, the Board has determined
that the balance of public interest factors it must
consider under section 4(c)(8) is consistent with approval of Applicant's proposal to acquire Company.
Based on the foregoing and other facts of record, the
Board has determined that the applications under
sections 3 and 4 of the Act should be and hereby are
18. On the basis of this written report, submitted upon request to
the Department of Treasury, civil money penalties totalling $125,000
were assessed against several of Applicant's subsidiary banks based
on their failure to report numerous currency transactions. This
penalty does not account for the 31 transactions related to Applicant's
criminal conviction and currently on appeal.
approved, subject to Applicant's assurances, commitments and divestiture proposals. Applicant's acquisition of Conifer shall not be consummated before the
thirtieth calendar day following the effective date of
this Order, or later than three months after the effective date of this Order, unless such period is extended
for good cause by the Board or by the Federal Reserve
Bank of Boston, pursuant to delegated authority. The
determinations as to Conifer's nonbanking activities
are subject to all of the conditions contained in Regulation Y, including those in sections 225.4(d) and
225.23(b)(3) (12 C.F.R. §§ 225.4(d) and 225.23(b)(3)),
and to the Board's authority to require such modification or termination of the activities of a holding
company or any of its subsidiaries as the Board finds
necessary to assure compliance with the provisions
and purposes of the Act and the Board's regulations
and orders issued thereunder, or to prevent evasion
thereof.
By order of the Board of Governors, effective
March 23, 1987.
Voting for this action: Chairman Volcker and Governors
Johnson, Seger, Angell, and Heller.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
Benson Financial Corporation
San Antonio, Texas
Order Approving Acquisition of Bank Holding
Companies, Banks and Nonbanking Subsidiaries
Benson Financial Corporation, San Antonio, Texas, a
bank holding company within the meaning of the Bank
Holding Company Act ("Act"), 12 U.S.C. § 1841
et seq., has applied under section 3 of the Act,
12 U.S.C. § 1842, to merge with Benson Investment
Company, San Antonio, Texas ("Benson"), and
thereby indirectly to acquire Kelly Field National
Bank, San Antonio, Texas ("Kelly") and Exchange
National Bank, San Antonio, Texas ("Exchange").
Applicant has also applied under section 3 of the Act
to merge with Groos Financial Corporation, San Antonio, Texas ("Groos"), and thereby indirectly to acquire Groos Bank, N.A., San Antonio, Texas, and to
acquire 80 percent of the voting shares of San Pedro
Bancshares, San Antonio, Texas ("SPB"), and thereby indirectly to acquire San Pedro State Bank, San
Antonio, Texas. Further, Applicant has applied under
section 4(c)(8) of the Act, 12 U.S.C. § 1843(c)(8), to
acquire Bancshares Life Insurance Group, San Antonio, Texas, and thereby to engage in the underwriting
of credit life and credit accident and health insurance.
Legal Developments
Notice of the applications, affording interested persons an opportunity to submit comments, has been
given in accordance with section 3(b) of the Act
(51 Federal Register 44,689 (1986)). The time for filing
comments has expired, and the Board has considered
the applications and all comments received in light of
the factors set forth in sections 3(c) and 4(c)(8) of the
Act.
Applicant is a one-bank holding company by virtue
of its ownership of Commercial National Bank, San
Antonio, Texas. Applicant's principal controls Benson, Groos and SPB, and this proposal represents the
reorganization of these four banking organizations into
a single multibank holding company. Applicant, with
deposits of $23.6 million,1 is the 728th largest commercial banking organization in Texas, controlling less
than 0.1 percent of the total deposits in commercial
banking organizations in the state. Upon consummation of this proposal, Applicant would become the 27th
largest commercial banking organization in Texas and
control deposits of $355.5 million, representing 0.3
percent of total deposits in commercial banking organizations in the state. Consummation of this proposal
would not have any significant adverse effect upon the
concentration of banking resources in the state.
Applicant, Benson, Groos, and SPB all operate in
the San Antonio banking market. 2 Applicant, with
deposits of $23.6 million, is the 32nd largest of 50
commercial banking organizations in the market controlling 0.3 percent of total deposits in commercial
banking organizations in the market. Benson is the
tenth largest commercial banking organization in the
market with deposits of $117.3 million, representing
1.38 percent of total deposits in commercial banking
organizations in the market. Groos is the twelfth
largest commercial banking organization in the market
with deposits of $112.5 million, representing 1.32
percent of total deposits in commercial banking organizations in the market. SPB, with deposits of $105
million, is the fifteenth largest commercial banking
organization in the market, controlling 1.24 percent of
the total deposits in commercial banking organizations
in the market. Upon consummation of the proposal,
Applicant will become the eighth largest commercial
banking organization in the market with deposits of
$358.5 million, representing 4.24 percent of the total
deposits in commercial banking organizations in the
market.
The San Antonio banking market is considered to be
moderately concentrated with a Herfindahl-Hirschman Index ("HHI") of 1139. Upon consummation of
the proposal, the HHI would increase by 12 points to
1. All banking data are as of December 31, 1985.
2. The San Antonio banking market is approximated by the San
Antonio Ranally Metropolitan Area.
377
1151, and the market would remain moderately concentrated. 3 Consummation of this proposal would not
have any significant adverse effect on existing competition in the San Antonio banking market. Accordingly, considerations relating to competitive factors under
the Act are consistent with approval. 4
The financial resources of Applicant, its banking
subsidiary, and the banking organizations to be acquired are consistent with approval. This proposal is
essentially a reorganization of existing ownership interests, and no additional debt will be incurred as a
result of these transactions. This reorganization may
provide Applicant with increased access to capital
markets, reduce overhead costs and enhance debtservicing capabilities. The Board has relied upon these
and other considerations, including commitments
made by Applicant, in finding banking factors to be
consistent with approval.
In its evaluation of Applicant's managerial resources, the Board has considered certain violations
by Benson's bank subsidiaries, Kelly and Exchange,
of the Currency and Foreign Transactions Reporting
Act ("CFTRA"). 5 Kelly and Exchange have established comprehensive policies and procedures to ensure compliance with the CFTRA. Examiners from the
Office of the Comptroller of the Currency have reviewed the sufficiency of the compliance procedures
adopted by Kelly and Exchange and their efficacy in
correcting the deficiencies. The Board has consulted
with appropriate enforcement agencies, and has considered Kelly's and Exchange's past records of compliance with the law. Based on the foregoing and other
facts of record, the Board concludes that the managerial resources of Applicant, its banking subsidiary, and
the banking organizations to be acquired are consistent with approval. Considerations relating to the
convenience and needs of the communities to be
served also are consistent with approval.
Applicant has also applied under section 4(c)(8) to
indirectly acquire Bancshares Life Insurance Group,
through the proposed merger with its parent company
3. Under the Department of Justice Merger Guidelines, a market in
which the post-merger HHI is between 1000 and 1800 is considered
moderately concentrated. In such markets, the Department is unlikely
to challenge an acquisition that results in an increase in the HHI of
less than 100 points.
4. In analyzing the competitive effects of an application to reorganize and restructure ownership of banking organizations where an
individual or family controlling more than one banking organization in
the market seeks to transfer control of the banking organizations to a
single holding company, the Board takes into consideration the
competitive effects of the transaction whereby common ownership
was established. See Mid Nebraska Bancshares, Inc. v. Board of
Governors of the Federal Reserve System, 627 F.2d 266 (D.C. Cir.
1980). In this case, however, the proposed transaction raises no
serious competitive issues even when analyzed under current circumstances, when the banking organizations have increased in size and
become stronger competitors.
5. 31 U.S.C. § 5311 et seq., 31 C.F.R. § 103.
378
Federal Reserve Bulletin • May 1987
Benson, and thereby engage in the underwriting of
credit life and credit accident and health insurance.
These activities have been determined by the Board to
be closely related to banking and permissible for bank
holding companies. 12 C.F.R. § 225.25(b)(8)(i). There
is no evidence of record to indicate that approval of
the proposal would result in undue concentration of
resources, decreased or unfair competition, conflicts
of interest, unsound banking practices or other adverse effects on the public interest. Accordingly, the
Board has determined that the balance of the public
interest factors it must consider under section 4(c)(8)
of the Act is consistent with approval of the application.
Based on the foregoing and other facts of record,
and conditioned upon certain commitments made by
Applicant, the Board has determined that the applications under sections 3 and 4 of the Act should be and
hereby are approved. The acquisition of Benson,
Groos, and SPB shall not be consummated before the
thirtieth calendar day following the effective date of
this Order or later than three months after the effective
date of this Order, unless such period is extended for
good cause by the Board or by the Federal Reserve
Bank of Dallas, pursuant to delegated authority. The
determination as to the nonbanking activities is subject
to all of the conditions set forth in Regulation Y,
including sections 225.4(d) and 225.23(b) (12 C.F.R.
§§ 225.4(d) and 225.23(b)), and to the Board's authority to require such modifications or termination of
activities of a holding company or any of its subsidiaries as the Board finds necessary to assure compliance
with, or to prevent evasion of, the provisions and
purposes of the Act and the Board's regulations and
orders issued thereunder.
By order of the Board of Governors, effective
March 12, 1987.
Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, and Heller. Absent and not voting:
Chairman Volcker.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
Chemical N e w York Corporation
N e w York, N e w York
Order Approving Acquisition of a Bank Holding
Company
Chemical New York Corporation ("Chemical"), New
York, New York, a bank holding company within the
meaning of the Bank Holding Company Act (the
"Act") (12 U.S.C. § 1841 et seq.), has applied for the
Board's approval under section 3 of the Act
(12 U.S.C. § 1842) to acquire Texas Commerce Bancshares, Inc. ("Company"), Houston, Texas, and
thereby indirectly to acquire certain bank subsidiaries
of Company listed in Appendix A to this Order. 1
Applicant also has applied under section 4(c)(8) of the
Act (12 U.S.C. § 1843(c)(8)) to acquire the nonbanking
subsidiaries of Company listed in Appendix B to this
Order.
Notice of the applications, affording opportunity for
interested persons to submit comments, has been
published (52 Federal Register 4660 (1987)). The time
for filing comments has expired, and the Board has
considered the applications and all comments received
in light of the factors set forth in sections 3(c) and
4(c)(8) of the Act.
Applicant, with approximately $26.7 billion in domestic deposits representing approximately 10.4 percent of the total deposits in commercial banks in New
York, is the 3rd largest commercial banking organization in New York. 2 Company is the 4th largest commercial banking organization in Texas with domestic
deposits of approximately $13.5 billion, representing
approximately 8.6 percent of the total deposits in
commercial banks in Texas.
Section 3(d) of the Act, 12 U.S.C. § 1842(d), the
Douglas Amendment, prohibits the Board from approving an application by a bank holding company to
acquire a bank located outside the bank holding company's home state, unless such acquisition is "specifically authorized by the statute laws of the state in
which such bank is located, by language to that effect
and not merely by implication." 3
Effective January 1, 1987, Texas enacted an interstate banking statute that permits, subject to certain
limitations, out-of-state bank holding companies to
1. Applicant will acquire Company through a merger of Company
with and into Chemical Texas Holdings, Inc., New York, New York
("CTH"), a wholly owned subsidiary of Applicant. In connection
with this application, CTH has applied to become a bank holding
company, to acquire the banking subsidiaries listed in Appendix A to
this Order, and to acquire the nonbanking subsidiaries listed in
Appendix B to this Order. CTH is not of significance except as a
means to facilitate Applicant's acquisition of Company.
Applicant, through its subsidiary, CT Holdings, Inc., New York,
New York, also will acquire Texas Commerce Bank-Richardson,
N.A. ("Richardson Bank"), Richardson, Texas. In connection with
the Richardson Bank acquisition, CT Holdings, Inc. has applied to
become a bank holding company. In addition, Applicant will acquire
indirectly Company's 9.5 percent interest in Lockwood National
Bank, Houston, Texas.
2. Banking data are as of December 31, 1986.
3. A bank holding company's home state for purposes of the
Douglas Amendment is that state in which the total deposits of its
banking subsidiaries were largest on July 1, 1966, or on the date it
became a bank holding company, whichever date is later. 12 U.S.C.
§ 1842.
Legal Developments
acquire established Texas banks and bank holding
companies. 4 The Texas Banking Department has informed the Board that it has no objection to this
proposal. Based on the foregoing factors and its own
review of the record, the Board has determined that
the proposed acquisition is specifically authorized by
the statute laws of Texas and thus Board approval is
not prohibited by the Douglas Amendment.
The Board has considered the effects of the proposal
upon competition in the relevant banking markets.
Because Applicant does not operate a bank in any
market in which Company operates a banking subsidiary, consummation of the proposal would not eliminate significant existing competition in any relevant
banking market.
The Board also has considered the effects of the
proposed acquisition on probable future competition
in New York and Texas. In view of the existence of
numerous other potential entrants into the markets
served by the banking subsidiaries of Applicant and
Company, the Board has concluded that consummation of the proposed transaction would not have any
significant adverse effects on probable future competition in any relevant banking market. 5
In evaluating these applications, the Board has
considered the financial resources of Applicant and
the effect on those resources of the proposed acquisition. The Board has stated and continues to believe
that capital adequacy is an especially important factor
in the analysis of bank holding company proposals,
particularly in transactions, such as this, where a
significant acquisition is proposed.
In this regard, the Board expects that banking
organizations experiencing substantial growth internally and by acquisition, such as Applicant, should
maintain a strong capital position substantially above
the minimum levels specified in the Board's Capital
Adequacy Guidelines.6 The Board will carefully analyze the effect of expansion proposals on the preserva-
4. Tex. Rev. Civ. Stat. Ann. art. 342-916 (Vernon 1986). The Board
previously has approved the acquisition of a Texas bank by an out-ofstate bank holding company. State First Financial Corporation, 73
FEDERAL RESERVE B U L L E T I N 3 0 7 ( 1 9 8 7 ) .
5. Both Applicant and Company own limited service commercial
banks in Delaware. The primary activity of Applicant's bank is
general corporate lending; Company's Delaware bank was established
primarily to offer consumer credit card services. Although Applicant's
bank also offers credit card services, the market for such credit card
services is nationwide and unconcentrated, and the market shares
controlled by Applicant and Company are de minimis. Accordingly,
consummation of the proposed transaction will not have a significant
adverse effect on existing or probable future competition in any
relevant market.
6. Capital Adequacy Guidelines, 50 Federal Register
16,057,
16,066-67
(April
(1985)); National
743, 746 (1984).
24,
1985) (71
F E D E R A L RESERVE B U L L E T I N
City Corporation,
445
70 FEDERAL RESERVE BULLETIN
379
tion or achievement of such capital positions. In that
regard, this proposal will reduce Applicant's tangible
primary capital ratio; however, Applicant's capital
position will continue to be well above the minimum
requirements of the Guidelines. Moreover, the Board
notes Applicant's intention to enhance its capital position. The Board also notes that the proposed spin-off
of approximately 30 percent of Company's nonperforming loans will reduce Applicant's risk from the
acquisition.
In evaluating this proposal, the Board also notes
that Applicant's existing and projected consolidated
earnings and parent cash flow appear sufficient to
provide flexibility, if pro forma earnings are lower
than anticipated. The Board also notes that the proposed acquisition will strengthen the condition of
Company not only by the removal from Company of a
substantial portion of Company's nonperforming loans
but also by granting greater access for Company to
sources of funding and expanded banking services.
Accordingly, on the basis of the above considerations
and Applicant's continuing steps to strengthen its
capital position, the Board concludes that financial
factors are consistent with approval of the proposal.
Managerial resources, convenience and needs considerations, and future prospects of Applicant and Company also are consistent with approval.
As indicated earlier, Applicant also has applied,
pursuant to section 4(c)(8), to acquire certain nonbanking subsidiaries of Company. Applicant operates
commercial real estate financing, consumer finance,
equipment leasing, discount brokerage, mortgage organization and servicing, trust services, and investment advisory services subsidiaries that compete with
Company's nonbanking subsidiaries in such activities.
The markets for all these activities, except consumer
finance activities and individual trust services, are
national in scope, and there are numerous existing and
potential competitors in these markets. In addition,
Company intends to cease its activity in the area of
commercial real estate financing. Moreover, in each of
these activities, either Applicant's or Company's market share is de minimis.
The markets for the remaining nonbanking activities
in which Applicant and Company compete, consumer
finance and trust services to individuals, are local in
nature, and there are numerous existing and potential
competitors in those markets. In addition, Applicant's
market share in these activities is de minimis. Accordingly, the Board concludes that the proposal would not
have any significant adverse effect on existing or
probable future competition in any relevant nonbanking market.
The National Association of Life Underwriters, the
National Association of Professional Insurance
380
Federal Reserve Bulletin • May 1987
Agents, the Independent Insurance Agents of America, Inc., the National Association of Casualty and
Surety Agents, and the National Association of Surety
Bond Producers protested this application on the
grounds that the activities conducted by Company's
nonbanking subsidiary, Pyramid Agency, Inc. ("Pyramid"), are impermissible under section 4(c)(8) of the
Act. Pyramid's primary activity, acting as a managing
general agent in connection with the sale of insurance
directly related to extensions of credit by Company's
bank subsidiaries, is permissible under section
4(c)(8)(E) of the Act and section 225.25(b)(8)(v) of the
Board's Regulation Y. Pyramid's remaining activity,
acting as agent for the purchase of public depository
bonds solely for Company's bank subsidiaries, is a
permissible servicing activity under sections 4(a)(2)
and 4(c)(1)(C) of the Act, and section 225.22(a)(2)(ix)
of the Board's Regulation Y. The Board previously
has determined that the prohibition on insurance activities now contained in section 4(c)(8) of the Act as a
result of the 1982 Garn-St Germain Depository Institutions Act has no bearing on the internal operations of a
bank holding company. 49 Federal Register 808
(1984). Accordingly, the Board concludes that Pyramid's insurance activities are consistent with the Act.
There is no evidence in the record to indicate that
approval of this proposal would result in undue concentration of resources, decreased or unfair competition, conflicts of interests, unsound banking practices,
or other adverse effects on the public interest. Accordingly, the Board has determined that the balance of
public interest factors it must consider under section
4(c)(8) of the Act is favorable and consistent with
approval of the applications to acquire Company's
nonbanking subsidiaries and activities.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved. The acquisition of Company shall not be consummated before the thirtieth
calendar day following the effective date of this Order,
or later than three months after the effective date of
this Order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
New York, acting pursuant to delegated authority.
The determinations as to Applicant's nonbanking activities are subject to all of the conditions contained in
Regulation Y, including those in sections 225.4(d) and
225.23(b)(3) (12 C.F.R. §§ 225.4(d) and 225.23(b)(3)),
and to the Board's authority to require such modification or termination of the activities of a holding
company or any of its subsidiaries as the Board finds
necessary to assure compliance with the provisions
and purposes of the Act and the Board's regulations
and orders issued thereunder, or to prevent evasion
thereof.
By order of the Board of Governors, effective
March 25, 1987.
Voting for this action: Chairman Volcker and Governors
Seger, Angell, and Heller. Absent and not voting: Governor
Johnson.
JAMES MCAFEE
Associate Secretary of the Board
[SEAL]
APPENDIX
A
Banking Subsidiaries
To Be
Acquired
Texas Commerce Bank-Amarillo, Amarillo, Texas;
Texas Commerce Bank-Austin, N.A., Texas Commerce Bank-Barton Creek, N.A., and Texas Commerce Bank-Northcross, N.A., all in Austin, Texas;
Texas Commerce Bank-Beaumont, N.A., Beaumont,
Texas; Texas Commerce Bank-Brownsville, Brownsville, Texas; Texas Commerce Bank-Corpus Christi,
N.A., Texas Commerce Bank-Gulfway, N.A., both in
Corpus Christi, Texas; Texas Commerce Bank-Arlington, Arlington, Texas; Texas Commerce Bank-Brookhollow, N.A, Dallas, Texas; Texas Commerce BankCampbell Centre, N.A., Dallas, Texas; Texas
Commerce Bank-Casa Linda, N.A., Dallas, Texas;
Texas Commerce Bank-Dallas, N.A., Dallas, Texas;
Texas Commerce Bank-Fort Worth, Fort Worth, Texas; Texas Commerce Bank-Garland, Garland, Texas;
Texas Commerce Bank-Hillcrest, Dallas, Texas; Texas Commerce Bank-Hurst, N.A., Hurst, Texas; Texas
Commerce Bank-Irving Boulevard, Irving, Texas;
Texas Commerce Bank-Las Colinas, Irving, Texas;
Texas Commerce Bank-Northwest, N.A., Dallas,
Texas; Texas Commerce Bank-Park Central, N.A.,
Dallas, Texas; Texas Commerce Bank-Preston Royal,
N.A., Dallas, Texas; Texas Commerce Bank-Quorum,
N.A., Dallas, Texas; Texas Commerce Bank-Border
City, Texas Commerce Bank-Chamizal, N.A., Texas
Commerce Bank-East, N.A., Texas Commerce BankEl Paso, N.A., Texas Commerce Bank-First State,
Texas Commerce Bank-Northgate, N.A., Texas Commerce Bank-West, N.A., all in El Paso, Texas; Texas
Commerce Bank-Airline, Texas Commerce BankChampions Park, N.A., Texas Commerce BankChemical, Texas Commerce Bank-Clear Lake, N.A.,
all in Houston, Texas; Texas Commerce Bank-Conroe, N.A., Conroe, Texas; Texas Commerce BankCyfair, N.A., Houston, Texas; Texas Commerce
Bank-Cypress Station, N.A., Houston, Texas; Texas
Commerce Bank-Del Oro, N.A., Houston, Texas;
Texas Commerce Bank-Friendswood, Friendswood,
Legal Developments
Texas; Texas Commerce Bank-Greens Crossing,
N.A., Houston, Texas; Texas Commerce BankGreenway Plaza, N.A., Houston, Texas; Texas Commerce Bank National Association, Houston, Texas;
Texas Commerce Bank-Inwood, N.A., Houston, Texas; Texas Commerce Bank-Katy Freeway, N.A.,
Katy, Texas; Texas Commerce Bank-Kingwood,
N.A., Kingwood, Texas; Texas Commerce BankLakeside, Houston, Texas; Texas Commerce BankNorth Freeway, Houston, Texas; Texas Commerce
Bank-Pasadena, Pasadena, Texas; Texas Commerce
Bank-Reagan, Houston, Texas; Texas Commerce
Bank-Richmond/Sage, Houston, Texas; Texas Commerce Bank-River Oaks, N.A., Houston, Texas; Texas Commerce Bank-South Belt, N.A., Houston, Texas; Texas Commerce Bank-Southeast, Houston,
Texas; Texas Commerce Bank-Stafford, N.A., Houston, Texas; Texas Commerce Bank-Sugar Land,
N.A., Sugar Land, Texas; Texas Commerce BankTanglewood, Houston, Texas; Texas Commerce
Bank-Westlake Park, N.A., Houston, Texas; Texas
Commerce Bank-West Oaks, N.A., Houston, Texas;
Texas Commerce Bank-Westwood, Houston, Texas;
Texas Commerce Medical Bank, Houston, Texas;
Texas Commerce Bank-Longview, N.A., Longview,
Texas; Texas Commerce Bank National Association,
Lubbock, Texas; Texas Commerce Bank-McAllen,
N.A., McAllen, Texas; Texas Commerce Bank-Midland, N.A., Midland, Texas; Stone Fort National
Bank of Nacogdoches, Nacogdoches, Texas; Texas
Commerce Bank-New Braunfels, N.A., New Braunfels, Texas; Texas Commerce Bank-Odessa, Odessa,
Texas; Texas Commerce Bank-San Angelo, N.A., San
Angelo, Texas; Texas Commerce Bank-San Antonio,
San Antonio, Texas; Texas Commerce Bank-San Antonio, Loop 410, San Antonio, Texas; Texas Commerce Bank-San Antonio, N.W., N.A., San Antonio,
Texas; and Texas Commerce Banks (Delaware), Newark, Delaware.
APPENDIX
Nonbanking
381
and its subsidiaries pursuant to section 225.25(b)(8) of
the Board's Regulation Y; Texas Commerce Bancshares Leasing Company, and thereby engage in leasing personal or real property pursuant to section
225.25(b)(5) of the Board's Regulation Y; Texas Commerce Corporate Finance, Inc., and thereby engage in
making and servicing loans, investment or financial
advice pursuant to sections 225.25(b)(1) and (b)(4) of
the Board's Regulation Y; Texas Commerce Financial
Services, Inc., and thereby engage in securities brokerage activities pursuant to section 225.25(b)(15) of
the Board's Regulation Y; Texas Commerce Funding
Company, and thereby engage in making and servicing
loans pursuant to section 225.25(b)(1) of the Board's
Regulation Y; Texas Commerce Information Systems,
Inc., and thereby engage in data processing pursuant
to section 225.25(b)(7) of the Board's Regulation Y;
Texas Commerce Investment Management Company,
and thereby engage in investment or financial advice
pursuant to section 225.25(b)(4) of the Board's Regulation Y; Texas Commerce Leasing Company, and
thereby engage in leasing personal or real property
pursuant to section 225.25(b)(5) of the Board's Regulation Y; Texas Commerce Mortgage Company, and
thereby engage in making and servicing loans pursuant
to section 225.25(b)(1) of the Board's Regulation Y;
Texas Commerce Securities, Inc., and thereby engage
in investment or financial advice, underwriting and
dealing in government obligations and money market
instruments pursuant to sections 225.25(b)(4) and
(b)(16) of the Board's Regulation Y; Texas Commerce
Services Company, and thereby engage in trust company functions pursuant to section 225.25(b)(3) of the
Board's Regulation Y; and Texas Commerce Trust
Company of New York, and thereby engage in trust
company functions pursuant to section 225.25(b)(3) of
the Board's Regulation Y.
Security Pacific Corporation
Los Angeles, California
B
Subsidiaries
To Be
Acquired
El Paso National Corporation, and thereby engage in
leasing personal or real property pursuant to section
225.25(b)(5) of the Board's Regulation Y, and management consulting to depository institutions pursuant to
section 225.25(b)(ll) of the Board's Regulation Y;
Pyramid Agency, Inc., and thereby engage in the
supervision of retail insurance agents engaged in the
sale of property and casualty insurance on the real and
personal property used in the operations of Company
Order Approving Acquisition of a Bank Holding
Company and Certain Nonbanking Subsidiaries
Security Pacific Corporation, Los Angeles, California,
a bank holding company within the meaning of the
Bank Holding Company Act (the "Act") (12 U.S.C.
§ 1841 et seq.), has applied for the Board's approval
under section 3 of the Act (12 U.S.C. § 1842) to
acquire Orbanco Financial Services Corporation,
Portland, Oregon ("Company"), and thereby to acquire indirectly The Oregon Bank, Portland, Oregon
382
Federal Reserve Bulletin • May 1987
("Bank"). 1 Applicant has also applied under section
4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) to acquire
the following nonbanking subsidiaries of Company:
Orbanco Real Estate Services Company, Portland,
Oregon, and thereby engage in mortgage banking;
American Data Services, Portland, Oregon, and thereby engage in data processing activities; and Orbanco
Securities Corporation, Portland, Oregon, and thereby
engage in securities brokerage activities.2 These activities are authorized for bank holding companies pursuant to the Board's Regulation Y, 12 C.F.R.
§§ 225.25(b)(1), (b)(7), and (b)(15).
Notice of the applications, affording opportunity for
interested persons to submit comments, has been duly
published (51 Federal Register 46,935 (1986)). The
time for filing comments has expired, and the Board
has considered the applications and all comments
received in light of the factors set forth in sections 3(c)
and 4(c)(8) of the Act.
Applicant, with approximately $26.2 billion in domestic deposits representing 13.84 percent of the total
deposits in commercial banks in California, is the third
largest commercial banking organization in California.3 Bank is the third largest commercial banking
organization in Oregon with domestic deposits of
approximately $852 million, representing 6.43 percent
of the total deposits in commercial banks in Oregon.
Section 3(d) of the Act (12 U.S.C. § 1842(d)), the
Douglas Amendment, prohibits the Board from approving any application by a bank holding company to
acquire control of any bank located outside of the
holding company's home state, 4 unless such acquisition is "specifically authorized by the statute laws of
the State in which [the] bank is located, by language to
that effect and not merely by implication." An Oregon
statute that became effective on July 1, 1986, authorizes a California bank holding company, with the
permission of the Oregon Banking Supervisor, to
"acquire . . . the capital stock" of " a bank that has
1. Applicant will acquire Company through a merger of Company
with and into SPC/OFS Acquisition, Inc., Los Angeles, California
("SPC/OFS"), a wholly owned special purpose subsidiary of Applicant. In connection with this application, SPC/OFS has applied to
become a bank holding company by acquiring Company. SPC/OFS is
of no significance except as a means to facilitate Applicant's acquisition of Company.
2. In connection with this application, SPC/OFS also has applied to
acquire Orbanco Real Estate Services Company, American Data
Services, and Orbanco Securities Corporation.
3. Banking data are as of March 31, 1986.
4. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later.
been engaged in the business of banking for . . . not
less than three years prior to the effective date of the
acquisition, or . . . the capital stock of the bank
holding company of any such bank." 5 There is no
requirement of reciprocity.
Company controls Bank, which has been "engaged
in the business of banking" since 1943. The Oregon
Banking Supervisor has informed the Board that the
proposal appears permissible and, accordingly, the
Supervisor anticipates approving the proposal. Based
on the foregoing factors and its own review of the
record, the Board has determined that the proposed
acquisition is specifically authorized by the statute
laws of Oregon and is thus permissible under the
Douglas Amendment, subject to Applicant's obtaining
the approval of the Supervisor.
The Board has considered the effects of the proposal
upon competition in the relevant banking markets.
Because Applicant does not operate a bank in any
market in which Bank operates, consummation of the
proposal would not eliminate significant existing competition in any relevant market.
The Board also has considered the effects of the
proposed acquisition on probable future competition
in Oregon. In view of the existence of numerous other
potential entrants from states within the Oregon interstate banking region into the markets served by Company, the Board has concluded that consummation of
the proposed transaction would not have any significant adverse effects on probable future competition in
any relevant banking market.
In evaluating these applications, the Board has
considered the financial resources of Applicant and
the effect on those resources of the proposed acquisition. In this regard, the Board has previously expressed concern that expansionary proposals should
be based on the maintenance of a strong tangible
primary capital position. In connection with an earlier
acquisition6 which had the effect of decreasing Applicant's tangible primary capital, Applicant expressed
its intention to restore its tangible primary capital ratio
to pre-acquisition levels and to continue to strengthen
its capital position. Although the terms of this proposal
contemplate a slight reduction in Applicant's tangible
primary capital ratio, the acquisition should not have
any material effect on Applicant's ability to meet its
stated capital goals. The Board expects that Applicant
will continue its efforts to meet its capital goals.
5. Or. Rev. Stat. § 715.065(1) (1985); see also § 706.005(29) (1985).
6 . Security
800 (1986).
Pacific
Corporation,
7 2 F E D E R A L RESERVE B U L L E T I N
Legal Developments
In addition, the Board notes that the proposed
acquisition will strengthen the condition of Company
through an injection of capital, increased managerial
expertise, and the anticipated benefits resulting from
the consolidation of operations. Based on the above
facts, particularly Applicant's plans to continue to
strengthen its primary capital position, the Board
concludes that the financial and managerial resources
and future prospects of Applicant and Company are
consistent with approval. Considerations relating to
the convenience and needs of the communities to be
served are also consistent with approval.
As indicated earlier, Applicant also has applied,
pursuant to section 4(c)(8), to acquire certain nonbanking subsidiaries of Company. Applicant operates
mortgage banking, data processing, and securities
brokerage subsidiaries that compete with Company
and its subsidiaries in such activities. The markets for
the data processing and brokerage activities are regional or national in scope, and for all the nonbanking
activities in which Applicant and Company compete
there are numerous existing and potential competitors
in their respective markets. Moreover, Applicant's
market share in these activities is de minimis. Accordingly, the Board concludes that the proposal would not
have any significant adverse effect on existing or
probable future competition in any relevant market.
Furthermore, there is no evidence in the record to
indicate that approval of this proposal would result in
undue concentration of resources, decreased or unfair
competition, conflicts of interests, unsound banking
practices, or other adverse effects on the public interest. Accordingly, the Board has determined that the
balance of public interest factors it must consider
under section 4(c)(8) of the Act is favorable and
consistent with approval of the applications to acquire
these nonbanking subsidiaries of Company.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved, subject to the condition that
Applicant obtain the approval of the Oregon Banking
Supervisor. The acquisition of Bank shall not be
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of San Francisco, acting
pursuant to delegated authority. The determinations as
to Applicant's nonbanking activities are subject to all
of the conditions contained in Regulation Y, including
those in sections 225.4(d) and 225.23(b)(3) (12 C.F.R.
§§ 225.4(d) and 225.23(b)(3)), and to the Board's
authority to require such modification or termination
of the activities of a holding company or any of its
subsidiaries as the Board finds necessary to assure
383
compliance with the provisions and purposes of the
Act and the Board's regulations and orders issued
thereunder, or to prevent evasion thereof.
By order of the Board of Governors, effective
March 11, 1987.
Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, and Heller. Absent and not voting:
Chairman Volcker.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
United Banks of Colorado, Inc.
Denver, Colorado
Order Approving Acquisition of a Bank Holding
Company, Banks and Nonbank Subsidiaries
United Banks of Colorado, Inc., Denver, Colorado, a
bank holding company within the meaning of the Bank
Holding Company Act ("Act"), 12 U.S.C. § 1841 et
seq., has applied for the Board's approval under
section 3 of the Act, to acquire 100 percent of the
voting shares of IntraWest Financial Corporation,
Denver, Colorado ("IntraWest"), and thereby indirectly to acquire IntraWest's 16 bank subsidiaries.1
Applicant has also applied under section 4(c)(8) of the
Act to indirectly acquire the following nonbanking
subsidiaries of IntraWest: IntraWest Mortgage Company, Denver, Colorado, engaged in mortgage banking; IntraWest Insurance Agency, Inc., Denver, Colorado, engaged in the sale of credit life, health and
accident insurance; IntraWest Insurance Company,
Denver, Colorado, engaged in the underwriting of
credit life and accident insurance; IntraWest Leasing
Company, Denver, Colorado, engaged in leasing property; and FMDC, Inc., Denver, Colorado, engaged in
equity placements on behalf of institutional investors.
1. IntraWest's bank subsidiaries, all located in Colorado, are:
IntraWest Bank of Arapahoe, N.A., Englewood;
IntraWest Bank of Aurora, N . A . , Aurora;
IntraWest Bank of Bear Valley, N.A., Denver;
IntraWest Bank of Boulder, N . A . , Boulder;
IntraWest Bank of Colorado Springs, N . A . , Colorado Springs;
IntraWest Bank of Fort Collins, N.A., Fort Collins;
IntraWest Bank of Grand Junction, N . A . , Grand Junction;
IntraWest Bank of Greeley, N . A . , Greeley;
IntraWest Bank of Highlands Ranch, N . A . , Highlands Ranch;
IntraWest Bank of Montrose, N . A . , Montrose;
IntraWest Bank of Northglenn, N . A . , Northglenn;
IntraWest Bank of Pueblo, N . A . , Pueblo;
IntraWest Bank of Steamboat Springs, N.A., Streamboat Springs;
IntraWest Bank of Sterling, N.A., Sterling;
IntraWest Bank of Southglenn, N . A . , Littleton; and
IntraWest Bank of Southwest Plaza, N.A., Littleton.
384
Federal Reserve Bulletin • May 1987
Notice of the applications, affording interested persons an opportunity to submit comments, has been
duly published (51 Federal Register 41,022 (1986)).
The time for filing comments has expired, and the
Board has considered the applications and all comments received, including comments of the Colorado
Coalition to Save Rural America ("Coalition"), in
light of the factors set forth in sections 3(c) and 4(c)(8)
of the Act.
Applicant is the largest commercial banking organization in Colorado with 32 subsidiary banks and
controls aggregate deposits of approximately $3.9 billion, representing 18.4 percent of total deposits in
commercial banking organizations in the state. 2
IntraWest is the sixth largest commercial banking
organization in Colorado, controlling deposits of approximately $1 billion, representing 4.8 percent of
total deposits in commercial banking organizations in
the state. Upon consummation of this proposal and all
planned divestitures, Applicant would remain the largest commercial banking organization in Colorado controlling deposits of approximately $4.9 billion, representing 23.1 percent of total deposits in commercial
banking organizations in the state.
Banking resources in Colorado are considered unconcentrated, with the four largest commercial banks
controlling 50.1 percent of the deposits in commercial
banking organizations in the state, and an existing
Herfindahl-Hirschman Index ("HHI") of 783. The
Board does not believe that consummation of the
proposal would have any significantly adverse effect
on the concentration of commercial banking resources
in the state.
Collins, the proposal raises significant issues regarding
the elimination of existing competition. While the
proposed acquisition represents a borderline case, the
Board believes that on balance the proposal would not
have any substantially adverse competitive effects in
light of the overall competitive structure of each of the
markets, including in particular the substantial competitive influence of thrift institutions in the markets
and the number of existing commercial bank competitors with the financial and managerial resources to
compete effectively in the markets.
Greeley Banking Market
Applicant's subsidiary banks compete directly with
IntraWest's subsidiary banks in eight banking markets: the Denver-Boulder, Colorado Springs, Pueblo,
Fort Collins, Grand Junction, Greeley, Montrose and
Steamboat Springs banking markets. In two of these
markets, Montrose and Steamboat Springs, Applicant
will divest its banking subsidiaries prior to consummation of the proposed acquisition. Accordingly, consummation of the proposal would have no significant
adverse effect upon competition in these markets.
Applicant and IntraWest compete in six markets in
which no divestitures are proposed: the Denver-Boulder, Colorado Springs, Pueblo, Fort Collins, Grand
Junction and Greeley banking markets. In three of
these markets, Greeley, Grand Junction, and Fort
In the Greeley banking market, Applicant is the third
largest of 14 commercial banking organizations with
deposits of $106.3 million, representing 17.3 percent of
the total deposits in commercial banking organizations
in the market. 3 IntraWest, with deposits of $123.6
million, representing 20.1 percent of total market
deposits, is the second largest commercial banking
organization in the market. Upon consummation of the
proposal, Applicant would become the largest banking
organization in the market with a 37.4 percent market
share. The Greeley banking market is considered to be
moderately concentrated with the four largest commercial banking organizations controlling 77 percent
of those deposits, which upon consummation, would
increase to 80.9 percent. The HHI for the market
would increase by 695 points to 2356.
Although consummation of the proposal would eliminate some existing competition between Applicant
and IntraWest, 13 other commercial banking organizations would remain as competitors in the market and
among these are three of the five largest commercial
banking organizations in Colorado. Moreover, the
Greeley banking market has become increasingly more
competitive. In the past three years, for example, the
share of deposits controlled by the market's largest
commercial banking organizations has declined.
In addition, six thrift institutions including the four
largest thrift institutions in the state, operate offices in
the Greeley market, controlling 27 percent of the
market's total deposits, a market share that has increased in the last three years. These institutions
compete with commercial banks in the market as
providers of NOW accounts and consumer loans.
Moreover, five of the thrift institutions in the market
also offer commercial loans. In the Board's view, the
substantial competitive influence of thrift institutions
in the market and the presence of several substantial
2. Except where otherwise specified, banking data are as of December 31, 1985.
3. The Greeley banking market is approximated by Weld County,
Colorado, except for the communities of Fort Lupton, Frederick and
Keenesburg, Colorado. Greeley market data are as of June 30, 1986.
Competitive Factors
Legal Developments
commercial bank competitors in the market, mitigate
the anticompetitive effects of the proposal in the
Greeley banking market. 4
Grand Junction Market
In the Grand Junction banking market, Applicant is
the third largest of nine commercial banking organizations with deposits of $75 million, representing 19.7
percent of the total deposits in commercial banking
organizations in the market. 5 IntraWest, with deposits
of $96.7 million representing 25.4 percent of total
commercial bank deposits in the market, is the second
largest commercial banking organization in the market. Upon consummation of the proposal, Applicant
would become the largest commercial banking organization in the market with a 45.1 percent market share.
The Grand Junction banking market is considered to
be highly concentrated with a four-firm concentration
ratio of 84.5 percent. Upon consummation, the HHI
for the market would increase by 1003 points to 3082.
Eight commercial banking organizations would remain
as competitors in the market upon consummation.
These include four of the 10 largest banking organizations in the state, which have the financial and managerial resources to compete effectively in the market.
Eight thrift institutions, including the state's second
largest thrift institution, operate offices in the Grand
Junction banking market, controlling 50.2 percent of
the market's combined deposits of banks and thrifts.
These institutions compete with commercial banks in
the market as providers of NOW accounts and consumer loans. Four of the thrift institutions in the
market offer commercial loans. In the Board's view,
the thrift institutions exert a significant competitive
influence in the market, that mitigates the anticompetitive effects of the proposal in the Grand Junction
market. 6
385
Fort Collins Market
IntraWest is the fifth largest commercial banking organization in the Fort Collins market with deposits of $19
million, representing 3.3 percent of the total deposits
in the market. Applicant is the second largest of eight
commercial banking organizations in the Fort Collins
market with deposits of $214 million, representing 37.1
percent of the total deposits in commercial banking
organizations in the market. 7 Upon consummation of
the proposal, Applicant would remain the second
largest commercial banking organization in the market
with a 40.4 percent market share. The Fort Collins
banking market is considered to be highly concentrated, with a four-firm concentration ratio of 90.8, which
upon consummation would increase to 94.1 percent.
The HHI for the market would increase by 245 points
to 3684.
Although the proposed acquisition would eliminate
some existing competition between Applicant and
IntraWest in the Fort Collins banking market, seven
other commercial banking organizations would remain
as competitors in the market. In addition, six thrift
institutions, including five of the state's ten largest
thrifts, operate offices in the market, controlling 37
percent of the market's combined deposits of banks
and thrifts. These institutions compete with commercial banks in the market as providers of NOW accounts and consumer loans. Five of the thrift institutions in the market also offer commercial loans. The
competitive influence of thrift institutions, the seven
remaining
commercial
banking
organizations,
Intra West's relatively small existing presence in the
market, and the moderate post-merger increase in
market concentration, all mitigate the anticompetitive
effects of the proposal in the Fort Collins banking
market. 8
Other Markets
4. If 50 percent of deposits held by thrift institutions in the Greeley
banking market were included in the calculation of market concentration, the share of total deposits held by the four largest organizations
in the market would be 65.0 percent. Applicant would control 14.6
percent of the market's deposits and Bank would control 17.0 percent
of the market's deposits. Upon consummation, the HHI would
increase by 496 points to 1733.
The market HHI, with thrifts included at 50 percent, has declined
from 1552 as of December 31, 1983 to 1237 as of June 30, 1986.
5. The Grand Junction banking market is approximated by Mesa
County, Colorado. Market data are as of June 30, 1986.
6. If 50 percent of deposits held by thrift institutions in the Grand
Junction banking market were included in the calculation of market
concentration, the share of total deposits held by the four largest
organizations in the market would be 60.1 percent. Applicant would
control 13.1 percent of the market's deposits and Bank would control
16.9 percent of the market's deposits. Upon consummation, the HHI
would increase by 443 points to 1583. The market would remain
moderately concentrated.
In the remaining three banking markets, the proposal
would not in the Board's view be likely to lessen
competition substantially. The Denver-Boulder and
Colorado Springs markets 9 are not highly concentrat-
7. The Fort Collins banking market is approximated by the Fort
Collins RMA.
8. If 50 percent of deposits held by thrift institutions in the Fort
Collins banking market were included in the calculation of market
concentration, the share of total deposits held by the four largest
organizations in the market would drop to 75.2 percent. Applicant and
Bank would control, respectively, 27.9 percent and 2.5 percent of the
market's combined deposits. Upon consummation of the proposal, the
HHI would increase 146 points to 2343.
9. The Denver-Boulder banking market is approximated by the
Denver RMA and all of Boulder County, Colorado. The Colorado
Springs banking market is approximated by the Colorado Springs
RMA.
386
Federal Reserve Bulletin • May 1987
ed and would not become so upon consummation of
the proposal. The increase in concentration in each of
these markets is small (less than 4 percentage points in
each case) and the market share of the resulting
organization is less than 25 percent.
In the Pueblo banking market, 10 the increase in
concentration is not substantial, particularly after giving weight to the competitive influence of the thrifts in
the market, and upon consummation, the Applicant
would rank third in the market with a 20.4 percent
market share. 11
On the basis of the foregoing and other facts of
record, the Board concludes that consummation of the
proposal would not have a substantial adverse effect
on existing competition in the Greeley, Grand Junction, Fort Collins, Denver-Boulder, Colorado Springs
and Pueblo banking markets.
The Board has considered the effects of this proposal on probable future competition in the three markets
in which only one of the two holding companies
competes, in light of its proposed guidelines for assessing the competitive effects of market extension mergers and acquisitions.12 In evaluating the effects of a
proposed acquisition upon probable future competition, the Board considers market concentration, the
number of probable future entrants into the market,
the size and market position of the bank to be acquired
and the attractiveness of the market for entry on a de
novo basis, absent approval of the acquisition.
After consideration of these factors and the rural
nature of the relevant markets, the Board concludes
that consummation of this proposal would not have
any significant adverse effects on probable future
competition in any relevant market. 13
Financial and Managerial Factors
The financial resources of Applicant and IntraWest are
consistent with approval. No additional debt will be
10. The Pueblo banking market is approximated by the Pueblo
RMA.
11. Applicant and IntraWest control 10.3 percent and 10.1 percent
respectively, of total deposits in commercial banks in the market. If 50
percent of deposits held by thrift institutions in the Pueblo banking
market were included in the calculation of market concentration,
Applicant would control 7 percent of the market's deposits and
IntraWest would control 6.8 percent of the market's deposits. Upon
consummation, the HHI would increase by 95 points to 1275.
12. "Policy Statement of the Board of Governors of the Federal
Reserve System for Assessing Competitive Factors Under the Bank
Merger Act and the Bank Holding Company Act," 47 Federal
Register 9017 (March 3, 1982). While the proposed policy statement
has not been approved by the Board, the Board is using the policy
guidelines as part of its analysis of the effect of a proposal on probable
future competition.
13. The three relevant markets are all located in rural areas and
have deposits of less than $250 million. Therefore, these markets are
not considered attractive for entry.
incurred in connection with the proposal and no additional intangible assets will be recorded. In addition,
Applicant's existing and pro forma consolidated capital levels are above the Board's minimum guidelines
and exceed peer group averages. 14 Applicant thus will
serve as a source of financial and managerial strength
to IntraWest's banks. Based on the foregoing and
other facts of record, the Board has determined that
Applicant has the financial resources to acquire
IntraWest without unduly diverting its resources away
from the continuing support of its subsidiary banks.
In its evaluation of Applicant's managerial resources, the Board has considered certain violations
by Applicant's and IntraWest's subsidiary banks of
the Currency and Foreign Transactions Reporting Act
("CFTRA") and the regulations thereunder. 15 Applicant has taken appropriate remedial action as a result
of the discovery of these violations. The corrective
measures include a revision of audit procedures and
the development of a compliance monitoring program
for each subsidiary bank. Applicant has committed to
implement its compliance program and audit procedures at IntraWest's subsidiary banks following consummation of this proposal and to undertake a compliance review within 60 days of consummation of the
acquisition. Based on the foregoing and other facts of
record, the Board concludes that the managerial resources of Applicant, IntraWest, and their respective
subsidiary banks are consistent with approval.
Convenience and Needs
Considerations
In considering the convenience and needs of the
communities to be served, the Board has taken into
account the records of Applicant and IntraWest under
the Community Reinvestment Act ("CRA"),
12 U.S.C. § 2901 et seq.16 The Board has received
comments from the Colorado Coalition to Save Rural
America ("Coalition") regarding Applicant's CRA record. The Coalition has alleged that Applicant has
failed to adequately meet the credit needs of the rural
neighborhoods in the communities served by Applicant's subsidiary banks. 17 In an attempt to resolve the
concerns raised by the protest, Applicant has met
14. Capital Adequacy Guidelines for Bank Holding Companies and
State Member Banks, 12 C.F.R. Part 225, Appendix A.
15. 31 U.S.C. § 5311 etseq.; 31 C.F.R. § 103.
16. The CRA requires the Board, in its evaluation of a bank holding
company application, to assess the record of an applicant in meeting
the credit needs of the entire community, including low- and moderate-income neighborhoods, consistent with safe and sound operation.
17. The Coalition generally alleges: that Applicant has an inadequate agricultural lending record; that it does not publicize the
availability of agricultural credit; that it proposes to limit agricultural
lending by IntraWest; and that the proposal may result in branch
closings in rural communities.
Legal Developments
privately with the Coalition on three occasions; however, the parties were unable to resolve the concerns
raised.
In accordance with the Board's practice and procedures for handling protested applications,18 the Board
has reviewed the CRA record of Applicant, the information provided and allegations made by the Coalition, and Applicant's response.
The Board has carefully reviewed the records of
Applicant and IntraWest in meeting the convenience
and needs of all segments of their communities. The
Board notes that Applicant's and IntraWest's subsidiary banks have achieved satisfactory overall CRA
ratings based upon the most recent compliance examinations conducted by the Office of the Comptroller of
the Currency.
In response to the Coalition's allegations, the Board
has reviewed the farm lending records of Applicant's
rural banks. 19 Applicant operates eight subsidiary
banks in six counties where at least 5 percent of total
commercial bank lending is classified as agricultural.
The Board's review of year-end 1985 loan data in each
of these counties reveals that Applicant's farm loans to
total loans ratios are nearly equivalent to county
averages. In addition, Applicant's subsidiary banks in
farm areas exhibit higher than average total loan to
deposit ratios in each of the areas examined. Taken
together, these data suggest that Applicant is generally
as active in agricultural lending as its competitor
banks, and more active generally than its competitors
in total lending in agricultural areas. In the Board's
view, the record does not support the Coalition's
assertions that Applicant has an inadequate farm lending record or that Applicant proposes to limit agricultural lending by its newly acquired IntraWest subsidiaries. Based on all the facts of record, the Board
concludes that the CRA records of the subsidiary
banks of Applicant and IntraWest, and convenience
and needs considerations generally, are consistent
with approval of the application.
Nonbanking
Activities
Applicant has also applied, pursuant to section 4(c)(8)
of the Act, to acquire IntraWest's nonbanking subsidiaries and thereby engage in mortgage banking, the
sale of credit related life, accident and health insurance, the underwriting of credit life and accident
insurance, as well as leasing and equity placement
activities. These activities have been determined by
18. 12 C.F.R. § 262.25.
19. Applicant has indicated that as of September 30, 1986, Applicant's subsidiary banks carried in excess of $70 million in farm loans.
387
the Board to be closely related to banking and permissible for bank holding companies. 12 C.F.R.
§§ 225.25(b)(1), (5), (8)(i), (9), and (14), respectively.
Applicant currently engages in the sale of credit life,
accident and health insurance and leasing activities
also engaged in by the IntraWest nonbanking subsidiaries it proposes to acquire. The credit-related insurance activities of Applicant's and IntraWest's subsidiaries are conducted in connection with Applicant's
and IntraWest's individual credit extension operations. Therefore, Applicant and IntraWest do not
compete in any material way in the provision of creditrelated life, accident and health insurance.
IntraWest's leasing activities are relatively insignificant. It does not currently originate new leases and its
current servicing portfolio of $28.0 million includes a
$16.0 million lease of the premises of its former lead
bank. Applicant, in turn, does not engage in mortgage
banking, the underwriting of credit life and accident
insurance, or the equity placement activities conducted by IntraWest. In addition, there are numerous
existing and potential entrants into the relevant markets for these activities. Accordingly, approval of
these applications will have no significant adverse
effect on competition in the proposal's nonbanking
activities in any relevant market. Furthermore, there
is no evidence in the record to indicate that approval of
the proposal would result in undue concentration of
resources, decreased or unfair competition, conflicts
of interest, unsound banking practices, or other adverse effects on the public interest. Accordingly, the
Board has determined that the balance of the public
interest factors it must consider under section 4(c)(8)
of the Act is consistent with approval of the application to acquire IntraWest's nonbanking subsidiaries.
Conclusion
Based on the foregoing and other facts of record, the
Board has determined that the applications under
sections 3 and 4 of the Act should be, and hereby are
approved, subject to Applicant's commitment to divest its banking subsidiaries in the Montrose and
Steamboat Springs banking markets. The acquisition
of IntraWest shall not be consummated before the
thirtieth calendar day following the effective date of
this Order, or later than three months after the effective date of this Order, unless such period is extended
for good cause by the Board or the Federal Reserve
Bank of Kansas City, pursuant to delegated authority.
The determinations as to the nonbanking activities are
subject to all of the conditions set forth in Regulation
Y, including sections 225.4(d) and 225.23(b),
12 C.F.R. §§ 225.4(d) and 225.23(b), and to the
Board's authority to require such modifications or
388
Federal Reserve Bulletin • May 1987
termination of activities of the holding company or any
of its subsidiaries as the Board finds necessary to
assure compliance with, or to prevent evasion of, the
provisions and purposes of the Act and the Board's
regulations and orders issued thereunder.
By order of the Board of Governors, effective
March 27, 1987.
Voting for this action: Chairman Volcker and Governors
Johnson, Angell, and Heller. Absent and not voting: Governor Seger.
JAMES M C A F E E
[SEAL]
ORDERS APPROVED
ACT
Associate Secretary of the Board
UNDER THE BANK
MERGER
Farmers Bank and Savings Company
Pomeroy, Ohio
Order Approving the Acquisition of Assets and
Assumption of Liabilities of a Bank
Farmers Bank and Savings Company, Pomeroy, Ohio,
has applied for the Board's approval under the Bank
Merger Act (12 U.S.C. § 1828(c)) to acquire certain
assets and assume certain liabilities of the Tuppers
Plains Branch of Bank One, Athens, N.A., Tuppers
Plains, Ohio ("Bank"). Bank is an affiliate of Banc
One Corporation, Columbus, Ohio.
Notice of the application, affording interested persons an opportunity to submit comments, has been
given in accordance with the Bank Merger Act and the
Board's Rules of Procedure (12 C.F.R. § 262.3(b)). As
required by the Bank Merger Act, reports on the
competitive effects of the transaction were requested
from the United States Attorney General, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation. The time for filing comments has
expired, and the Board has considered the application
and all comments received in light of the factors set
forth in section 18(c) of the Bank Merger Act.
Applicant is a wholly owned subsidiary of Farmers
Bancshares, Inc., Pomeroy, Ohio ("Corporation").
Corporation is the 109th largest commercial banking
organization in Ohio, controlling one subsidiary with
total deposits of $43.8 million, representing less than
one percent of total deposits in commercial banks in
the state. 1 The Tuppers Plains Branch controls depos-
1. State deposit data are as of September 30, 1986.
its of $4.1 million, representing less than one percent
of total deposits in commercial banks in Ohio. Upon
consummation of the proposal, Corporation would
control total deposits of approximately $47.9 million,
representing less than one percent of total deposits in
commercial banks in the state. Corporation would
become the 101st largest commercial banking organization in the state as a result of the proposed transaction. Accordingly, the Board concludes that consummation of this proposal would have no significant
effect on the concentration of banking resources in
Ohio.
Applicant and Bank both compete in the Meigs
County banking market. 2 Applicant is the second
largest of five commercial banking organizations in the
market, controlling deposits of $39.7 million, representing 30.7 percent of total deposits in commercial
banks in the market. 3 Bank is the largest commercial
banking organization in the market, controlling total
deposits of $47.1 million, representing 36.4 percent of
total deposits in commercial banking organizations in
the market. Applicant, by its acquisition of the Tuppers Plains Branch, will acquire $4.1 million in deposits from Bank, representing 3.2 percent of the deposits
in commercial banks in the market. Upon consummation of the proposal, Applicant would become the
largest commercial banking organization in the market, controlling 33.9 percent of the total deposits in
commercial banks in the market.
Although consummation of the proposed transaction may tend to reduce competition somewhat, the
Board does not believe that consummation of the
proposal would have any significant adverse effect on
competition in the Meigs County market. Although the
market is considered to be highly concentrated, with a
four-firm concentration ratio of 98 percent and a
Herfindahl-Hirschman Index ("HHI") of 2757, consummation of the proposal would not increase the
four-firm concentration level and the HHI would actually decrease by 16 points. 4 The proposed transaction
2. The Meigs County banking market is approximated by Meigs
County, Ohio, and the community of Mason in Mason County, West
Virginia.
3. Market data are as of June 30, 1986.
4. Under the revised Department of Justice Merger Guidelines
(49 Federal Register 26,823 (June 29, 1984)), a market in which the
post-merger HHI is above 1800 is considered highly concentrated. In
such markets, the Department is likely to challenge a merger that
increases the HHI by more than 50 points. The Department has
informed the Board that a bank merger or acquisition generally will
not be challenged (in the absence of other factors indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the
merger increases the HHI by at least 200 points. The Justice Department has stated that the higher than normal HHI thresholds for
screening bank mergers for anticompetitive effects implicitly recognizes the competitive effect of limited purpose lenders and other nondepository financial entities.
Legal Developments
would not reduce the number of competitors operating
in the market. Accordingly, the Board concludes that
Applicant's acquisition of the Tuppers Plains Branch
would not have any significant adverse effects on
competition in any relevant area.
The financial and managerial resources of Applicant
and the Tuppers Plain Branch are considered satisfactory. Considerations relating to the convenience and
needs of the community to be served are also consistent with approval.
Based on the foregoing and other facts of record, the
Board has determined that consummation of the transaction would be in the public interest and that the
application is approved for the reasons summarized
above. The transaction shall not be consummated
ORDERS APPROVED
By Federal Reserve
UNDER BANK HOLDING
389
before the thirtieth calendar day following the effective
date of this Order, or later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of Cleveland, acting pursuant to
delegated authority.
By order of the Board of Governors, effective
March 26, 1987.
Voting for this action: Chairman Volcker and Governors
Seger, Angell, and Heller. Absent and not voting: Governor
Johnson.
JAMES MCAFEE
[SEAL]
COMPANY
Associate Secretary of the Board
ACT
Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon
request to the Reserve Banks.
Section 3
Applicant
Banc One Corporation,
Columbus, Ohio
BMC Bancshares, Inc.,
Mt. Carmel, Illinois
Century Bancshares, Inc.,
Washington, D.C.
CG Bancshares, Inc.,
Irvine, Kentucky
Cheatham State Bank ESOP,
Kingston Springs, Tennessee
The Colonial BancGroup, Inc.,
Montgomery, Alabama
Community Bancorp, Inc.,
Glastonbury, Connecticut
Community Group, Inc.,
Jasper, Tennessee
Damariscotta Bankshares, Inc.,
Damariscotta, Maine
Financial Corporation of Central
Illinois, Inc.,
Strasburg, Illinois
Bank(s)
Charter 17 Bancorp, Inc.,
Richmond, Indiana
Bank of Mt. Carmel,
Mt. Carmel, Illinois
Columbia National Bank,
Washington, D.C.
Citizens Guaranty Bank,
Irvine, Kentucky
CSB Financial Corporation,
Ashland City, Tennessee
Cheatham State Bank,
Kingston Springs, Tennessee
F&M Holding Company, Inc.,
Foley, Alabama
Community National Bank,
Glastonbury, Connecticut
Farmers Bank of Lawrence
County,
Lawrenceburg, Tennessee
Damariscotta Bank and Trust
Company,
Damariscotta, Maine
Strasburg State Bank,
Strasburg, Illinois
Reserve
Bank
Effective
date
Cleveland
March 4, 1987
St. Louis
March 6, 1987
Richmond
March 16, 1987
Cleveland
March 20, 1987
Atlanta
March 13, 1987
Atlanta
February 27, 1987
Boston
February 20, 1987
Atlanta
March 18, 1987
Boston
March 4, 1987
Chicago
February 25, 1987
390
Federal Reserve Bulletin • May 1987
Section 3—Continued
..
A
Applicant
First American Corporation,
Nashville, Tennessee
First Bancorp, Inc.,
Yates City, Illinois
First Centre Bancshares, Inc.,
Camdenton, Missouri
First Citizens-Crenshaw
Bancshares, Inc.,
Luverne, Alabama
First Dolton Corp,
Dolton, Illinois
First Holding Company of
Cavalier, Inc.,
Cavalier, North Dakota
First Holding Company of Park
River, Inc.,
Park River, North Dakota
First Southeast Banking Corp.,
Darien, Wisconsin
First Union Corporation,
Charlotte, North Carolina
Front Range Capital
Corporation,
Lafayette, Colorado
Greensburg Deposit Bancorp,
Inc.,
Greensburg, Kentucky
Heights Bancshares, Inc.,
Harker Heights, Texas
Lincoln Banking Company,
Ltd.,
Steamboat Springs, Colorado
Livermore Bankshares,
Livermore Falls, Maine
LJT, Inc.,
Holdrege, Nebraska
Merchants National
Corporation,
Indianapolis, Indiana
Milledgeville Bancorp, Inc.,
Milledgeville, Illinois
Montgomery Bancorp, Inc.,
Bethesda, Maryland
National Penn Bancshares, Inc.,
Boyertown, Pennsylvania
Old Town Bancshares Corp.,
Abington, Massachusetts
Pontchartrain Bancshares, Inc.,
Metairie, Louisiana
,. ,
Bank(s)
n
FPB Corporation,
Gallatin, Tennessee
Bank of Yates City,
Yates City, Illinois
First Bank Centre,
Osage Beach, Missouri
First Citizens Bank,
Luverne, Alabama
Reserve
,
Bank
Effective
date
Atlanta
February 26, 1987
Chicago
March 4, 1987
St. Louis
March 3, 1987
Atlanta
March 11, 1987
Chicago
March 6, 1987
Minneapolis
February 25, 1987
First Bank Park River, N.A.,
Park River, North Dakota
Minneapolis
February 25, 1987
Bank of Milwaukee,
Milwaukee, Wisconsin
Roswell Bank,
Roswell, Georgia
Bank VII,
Lafayette, Colorado
Chicago
March 6, 1987
Richmond
February 27, 1987
Kansas City
March 19, 1987
Greensburg Deposit Bank,
Greensburg, Kentucky
St. Louis
March 12, 1987
Capital Peoples Bancshares, Inc.,
Lampasas, Texas
United Bank of Steamboat
Springs,
Steamboat Springs, Colorado
Livermore Falls Trust Company,
Livermore Falls, Maine
First Holdrege Bancshares, Inc.,
Holdrege, Nebraska
Fayette Bancorp,
Connersville, Indiana
Dallas
March 20, 1987
Kansas City
March 12, 1987
Boston
February 27, 1987
Kansas City
March 11, 1987
Chicago
March 3, 1987
Milledgeville State Bank,
Milledgeville, Illinois
Montgomery National Bank,
Bethesda, Maryland
Penncore Financial Services
Corporation,
Camp Hill, Pennsylvania
The Abington National Bank,
Abington, Massachusetts
Pontchartrain State Bank,
Metairie, Louisiana
Chicago
March 11, 1987
Richmond
March 16, 1987
Philadelphia
March 6, 1987
Boston
March 6, 1987
Atlanta
March 4, 1987
The First National Bank in
Dolton,
Dolton, Illinois
First Bank Cavalier, N.A.,
Cavalier, North Dakota
Legal Developments
391
Section 3—Continued
A
Applicant
Rittenhouse Financial Services
Inc.,
Philadelphia, Pennsylvania
Rog-Lee, Incorporated,
Manson, Iowa
Security Pacific Corporation,
Los Angeles, California
Solvay Bank Corp.,
Solvay, New York
Suffield Financial Corporation,
Suffield, Connecticut
Trustcorp, Inc.,
Toledo, Ohio
Union Bancorp, Inc.,
Pottsville, Pennsylvania
Volunteer Bancorp, Inc.,
Sneedville, Tennessee
Waseca Bancshares, Inc.,
Waseca, Minnesota
The Wedge Holding Company,
Alton, Illinois
w s
Bank(s)
n
Reserve
„ .
Bank
Effective
date
The Rittenhouse Trust Company,
Philadelphia, Pennsylvania
Philadelphia
February 27, 1987
Manson State Bank,
Manson, Iowa
California Pacific National Bank,
Los Angeles, California
Solvay Bank,
Solvay, New York
Coastal Bancorp,
Portland, Maine
Commercial Bankshares
Corporation,
Adrian, Michigan
Union Bank and Trust Company,
Pottsville, Pennsylvania
Citizens Bank of Sneedville,
Sneedville, Tennessee
First State Bank of Waseca,
Waseca, Minnesota
Bethalto National Bank,
Bethalto, Illinois
Brighton Bancshares, Inc.,
Brighton, Illinois
Chicago
February 26, 1987
San Francisco
February 27, 1987
New York
March 17, 1987
Boston
February 24, 1987
Cleveland
February 26, 1987
Philadelphia
March 20, 1987
Atlanta
February 27, 1987
Minneapolis
March 6, 1987
St. Louis
March 17, 1987
Section 4
Applicant
First Pennsylvania Corporation,
Philadelphia, Pennsylvania
The Chase Manhattan
Corporation,
New York, New York
First Illinois Corporation,
Evanston, Illinois
Maryland National Corporation,
Baltimore, Maryland
Security Pacific Corporation,
Los Angeles, California
United Security
Bancorporation,
Chewelah, Washington
Nonbanking
Company/Activity
Centre Square Investment Group,
Inc.,
Philadelphia, Pennsylvania
Clark Equipment Credit
Corporation,
Buchanan, Michigan
consumer finance and credit
insurance activities
C.M. Brown & Company, Inc.,
Springfield, New Jersey
Atlas Thrift of Nevada,
Las Vegas, Nevada
Colville Insurance Service,
Colville, Washington
Kettle Falls Insurance,
Kettle Falls, Washington
Reserve
Bank
Effective
date
Philadelphia
March 18, 1987
New York
February 27, 1987
Chicago
February 20, 1987
Richmond
March 3, 1987
San Francisco
February 23, 1987
San Francisco
March 16, 1987
392
Federal Reserve Bulletin • May 1987
PENDING
CASES INVOLVING
THE BOARD
OF
GOVERNORS
This list of pending cases does not include suits against the Federal Reserve Banks in which the Board of
Governors is not named a party.
Jones v. Volcker, No. 87-0427 (D.D.C., filed Feb. 19,
1987).
Bankers Trust New York Corp. v. Board of Governors,
No. 87-1035 (D.C. Cir., filed Jan. 23, 1987).
Securities Industry Association v. Board of Governors, et al., No. 87-1030 (D.C.Cir., filed Jan. 20,
1987).
Grimm v. Board of Governors, No. 87-4006 (2nd Cir.,
filed Jan. 16, 1987).
Independent Insurance Agents of America, et al. v.
Board of Governors, Nos. 86-1572, 1573, 1576
(D.C. Cir., filed Oct. 24, 1986).
Securities Industry Association v. Board of Governors, No. 86-2768 (D.D.C., filed Oct. 7, 1986).
Independent Community Bankers Association of
South Dakota v. Board of Governors, No. 86-5373
(8th Cir., filed Oct. 3, 1986).
Jenkins v. Board of Governors, No. 86-1419 (D.C.
Cir., filed July 18, 1986).
Securities Industry Association v. Board of Governors, No. 86-1412 (D.C. Cir., filed July 14, 1986).
Adkins v. Board of Governors, No. 86-3853 (4th Cir.,
filed May 14, 1986).
Optical Coating Laboratory, Inc. v. United States,
No. 288-86C (U.S. Claims Ct., filed May 6, 1986).
CBC, Inc. v. Board of Governors, No. 86-1001 (10th
Cir., filed Jan. 2, 1986).
Howe v. United States, et al., No. 86-889 (U.S. S.Ct.
filed Dec. 6, 1985).
Myers, et al. v. Federal Reserve Board, No. 85-1427
(D. Idaho, filed Nov. 18, 1985).
Souser, et al. v. Volcker, et al., No. 85-C-2370, et al.
(D. Colo., filed Nov. 1, 1985).
Podolak v. Volcker, No. C85-0456, et al. (D. Wyo.,
filed Oct. 28, 1985).
Kolb v. Wilkinson, et al., No. C85-4184 (N.D. Iowa,
filed Oct. 22, 1985).
Farmer v. Wilkinson, et al., No. 4-85-CIVIL-1448 (D.
Minn., filed Oct. 21, 1985).
Kurkowski v. Wilkinson, et al., No. CV-85-0-916 (D.
Neb., filed Oct. 16, 1985).
Alfson v. Wilkinson, et al., No. A1-85-267 (D. N.D.,
filed Oct. 8, 1985).
Independent Community Bankers Associaton of South
Dakota v. Board of Governors, No. 84-1496 (D.C.
Cir., filed Aug. 7, 1985).
Urwyler, et al. v. Internal Revenue Service, et al., No.
85-2877 (9th Cir., filed July 18, 1985).
Wight, et al. v. Internal Revenue Service, et al., No.
85-2826 (9th Cir., filed July 12, 1985).
Florida Bankers Association v. Board of Governors,
No. 84-3883 and No. 84-3884 (11th Cir., filed Feb.
15, 1985).
Florida Department of Banking v. Board of Governors, No. 84-3831 (11th Cir., filed Feb. 15, 1985),
and No. 84-3832 (11th Cir., filed Feb. 15, 1985).
Lewis v. Volcker, et al, No. 86-3210 (6th Cir., filed
Jan. 14, 1985).
Brown v. United States Congress, et al., No. 84-28876(IG) (S.D. Cal., filed Dec. 7, 1984).
Melcher v. Federal Open Market Committee, No. 841335 (D.D.C., filed Apr. 30, 1984).
Florida Bankers Association, et al. v. Board of Governors, Nos. 84-3269, 84-3270 (11th Cir., filed April
20, 1984).
Securities Industry Association v. Board of Governors, No. 86-5089, et al. (D.C. Cir., filed Oct. 24.,
1980).
393
Directors of
Federal Reserve Banks and Branches
Regional decentralization and a combination of governmental and private characteristics are important
hallmarks of the uniqueness of the Federal Reserve
System. Under the Federal Reserve Act, decentralization was achieved by division of the country into 12
Federal Reserve Districts and the establishment in
each District of a separately incorporated Federal
Reserve Bank with its own board of directors. The
member banks in each District own the stock of their
Reserve Bank and elect a majority of the board of
directors of that Bank. The Board of Governors, an
agency of the federal government, exercises general
supervision over the Reserve Banks and also appoints
a minority of each board of directors of the Reserve
Banks and their Branches. Thus, the Federal Reserve
relies importantly in the conduct of the System's
affairs on the regional participation and counsel of the
directors of the Federal Reserve Banks and Branches.
The following list of directors of Federal Reserve
Banks and Branches shows for each director the class
of directorship, the principal business affiliation, and
the date the current term expires. Each Federal Reserve Bank has nine members on its board of directors: the member banks elect the three Class A and
three Class B directors, and the Board of Governors
appoints the three directors in Class C. Directors are
chosen without discrimination as to race, creed, color,
sex, or national origin.
DISTRICT
Class
FEDERAL RESERVE B U L L E T I N . 1
1. The current list appears on page A89 of this BULLETIN.
Term
Expires
Dec. 31
1—BOSTON
A
Homer B. Ellis, Jr.
Harry R. Mitiguy
Robert L. Newell
Class
Class A directors of each Reserve Bank represent
the stockholding member banks of the Federal Reserve District. Class B and Class C directors represent
the public and are chosen with due, but not exclusive,
consideration to the interests of agriculture, commerce, industry, services, labor, and consumers; they
may not be officers, directors, or employees of any
bank. In addition, Class C directors may not be
stockholders of any bank. The Board of Governors
designates annually one Class C director as chairman
of the board of directors of each District Bank and
designates another Class C director as deputy chairman.
Each of the 25 Branches of the Federal Reserve
Banks has a board of either seven or five directors, a
majority of whom are appointed by the parent Federal
Reserve Bank; the others are appointed by the Board
of Governors. One of the Board's appointees is designated annually as chairman of the board of that Branch
in a manner prescribed by the parent Federal Reserve
Bank.
The names of the chairman and deputy chairman of
the board of directors of each Reserve Bank and of the
chairman of each Branch are published monthly in the
Director, Factory Point National Bank, Manchester Center,
Vermont
President, Howard Bancorp, Burlington, Vermont
Chairman, Hartford National Corporation, Hartford, Connecticut
1987
Chairman, President, and Chief Executive Officer, Barry Wright
Corporation, Newton Lower Falls, Massachusetts
President, Radcliffe College, Cambridge, Massachusetts
President and Chief Executive Officer, Cookson America, Inc.,
Providence, Rhode Island
1987
1988
1989
B
Ralph Z. Sorenson
Matina S. Horner
Richard M. Oster
1988
1989
394
Federal Reserve Bulletin • May 1987
DISTRICT
Class
1—Continued
C
Joseph A. Baute
George N. Hatsopoulos
Richard N. Cooper
DISTRICT
Class
2—NEW
1987
President and Chief Executive Officer, Wilber National Bank,
Oneonta, New York
Chairman of the Board, Morgan Guaranty Trust Company of
New York, New York, New York
Chairman of the Board and President, Banco de Ponce, Ponce,
Puerto Rico
1987
1988
1989
A
Lewis T. Preston
Alberto M. Paracchini
1988
1989
B
John F. Welch, Jr.
Richard L. Gelb
John A. Georges
Class
Chairman and Chief Executive Officer, Markem Corporation,
Keene, New Hampshire
Chairman of the Board and President, Thermo Electron
Corporation, Waltham, Massachusetts
Professor of International Economics, Harvard University,
Cambridge, Massachusetts
YORK
Robert W. Moyer
Class
Term
Expires
Dec. 31
Chairman and Chief Executive Officer, General Electric Company,
Fairfield, Connecticut
Chairman and Chief Executive Officer, Bristol-Myers Company,
New York, New York
Chairman and Chief Executive Officer, International Paper
Company, New York, New York
1987
Senior Vice President—Finance (Retired), American Telephone
and Telegraph Co., New York, New York
President, New York University, New York, New York
Chairman of the Executive Committee, International Business
Machines Corp., Armonk, New York
1987
1988
1989
C
Virginia A. Dwyer
John Brademas
John R. Opel
—BUFFALO
Appointed
BRANCH
by the Federal Reserve
Ross B. Kenzie
R. Carlos Carballada
Donald I. Wickham
Harry J. Sullivan
Appointed
by the Board of
Joseph Yantomasi
Mary Ann Lambertsen
Matthew Augustine
1988
1989
Bank
Chairman and Chief Executive Officer, Goldome FSB, Buffalo,
New York
President and Chief Executive Officer, Central Trust Company,
Rochester, New York
President, Tri-Way Farms, Inc., Stanley, New York
President, Salamanca Trust Company, Salamanca, New York
1987
1988
1988
1989
Governors
Consultant, United Auto Workers, Buffalo, New York
Vice President, Human Resources, Fisher-Price,
East Aurora, New York
President and Chief Executive Officer, Eltrex Industries, Inc.,
Rochester, New York
1987
1988
1989
Directors of Federal Reserve Banks and Branches
DISTRICT
3—PHILADELPHIA
Class A
Ronald H. Smith
Clarence D. McCormick
George A. Butler
President and Chief Executive Officer, CCNB Bank, N.A.,
New Cumberland, Pennsylvania
President, The Farmers and Merchants National Bank, Bridgeton,
New Jersey
Chairman and Chief Executive Officer, First Pennsylvania Bank,
N.A., Philadelphia, Pennsylvania
395
Term
Expires
Dec. 31
1987
1988
1989
Class B
Charles F. Seymour
Nicholas Riso
Carl E. S ingle y
Chairman and Chief Executive Officer, Jackson-Cross Company,
Philadelphia, Pennsylvania
President and Chief Executive Officer, Giant Food Stores, Inc.,
Carlisle, Pennsylvania
Attorney, Philadelphia, Pennsylvania
1987
Chairman of the Board, Hunt Manufacturing Company,
Philadelphia, Pennsylvania
Chairman and Chief Executive Officer, Delmarva Power & Light
Company, Wilmington, Delaware
Chairman, Quaker Chemical Corporation, Conshohocken,
Pennsylvania
1987
1988
1989
Class C
George E. Bartol III
Nevius M. Curtis
Peter A. Benoliel
DISTRICT
Class
1988
1989
4—CLEVELAND
A
Raymond D. Campbell
William A. Stroud
Frank Wobst
Chairman, President, and Chief Executive Officer, Independent
State Bank of Ohio, Columbus, Ohio
Chairman and President, First-Knox National Bank, Mount
Vernon, Ohio
Chairman and Chief Executive Officer, Huntington Bancshares
Incorporated, Columbus, Ohio
1987
Chairman of the Board and President, Mercury Instruments, Inc.,
Cincinnati, Ohio
President, John W. Galbreath, Columbus, Ohio
Chairman of the Board, International Spike, Inc., Lexington,
Kentucky
1987
1988
1989
Class B
Richard D. Hannan
Daniel M. Galbreath
Laban P. Jackson, Jr.
1988
1989
Class C
E. Mandell de Windt
John R. Miller
Charles W. Parry
Chairman of the Board (Retired), Eaton Corporation, Cleveland,
Ohio
Former President and Chief Operating Officer, The Standard Oil
Company (Ohio), Cleveland, Ohio
Chairman and Chief Executive Officer, Aluminum Company of
America, Pittsburgh, Pennsylvania
1987
1988
1989
396
Federal Reserve Bulletin • May 1987
DISTRICT
Continued
—CINCINNATI
BRANCH
Term
Expires
Dec. 31
Appointed by the Federal Reserve Bank
Sherrill Cleland
Jerry L. Kirby
Robert A. Hodson
Robert M. Duncan
President, Marietta College, Marietta, Ohio
Chairman of the Board and President, Citizens Federal Savings &
Loan Association, Dayton, Ohio
President and Chief Executive Officer, 1st Security Bank,
Hillsboro, Ohio
President and Chief Executive Officer, First National Bank of
Louisa, Louisa, Kentucky
1987
1987
1988
1989
Appointed by the Board of Governors
Don Ross
Kate Ireland
Owen B. Butler
—PITTSBURGH
Owner, Dunreath Farm, Lexington, Kentucky
National Chairman, Frontier Nursing Service, Wendover,
Kentucky
Chairman of the Board (Retired), The Procter & Gamble Company,
Cincinnati, Ohio
1987
1988
1989
BRANCH
Appointed by the Federal Reserve Bank
Charles L. Fuellgraf, Jr.
James S. Pasman, Jr.
Lawrence F. Klima
Thomas H. O'Brien
Chief Executive Officer, Fuellgraf Electric Company, Butler,
Pennsylvania
Former Vice Chairman, Aluminum Company of America,
Pittsburgh, Pennsylvania
President, The First National Bank of Pennsylvania, Erie,
Pennsylvania
President and Chief Executive Officer, PNC Financial Corp.,
Pittsburgh, Pennsylvania
1987
1987
1988
1989
Appointed by the Board of Governors
Milton A. Washington
James E. Haas
Karl M. von der Heyden
DISTRICT
Class
President and Chief Executive Officer, Allegheny Housing
Rehabilitation Corporation, Pittsburgh, Pennsylvania
President and Chief Operating Officer, National Intergroup, Inc.,
Pittsburgh, Pennsylvania
Senior Vice President-Finance and Chief Financial Officer,
H.J. Heinz Company, Pittsburgh, Pennsylvania
1987
Chairman of the Board and Chief Executive Officer, One Valley
Bancorp of West Virginia, Inc. and Kanawha Valley Bank, N.A.,
Charleston, West Virginia
Chairman of the Board and Chief Executive Officer, Madison
National Bank, and Chairman of the Board and President, James
Madison Limited, Washington, D.C.
President and Chief Executive Officer, Marion National Bank,
Marion, South Carolina
1987
1988
1989
5—RICHMOND
A
Robert F. Baronner
K. Donald Menefee
Chester A. Duke
1988
1989
Directors of Federal Reserve Banks and Branches
DISTRICT
5—Continued
397
Term
Expires
Dec. 31
Class B
Floyd D. Gottwald, Jr.
Edward H. Co veil
Thomas B. Cookerly
Chairman of the Board and Chief Executive Officer,
Ethyl Corporation, Richmond, Virginia
President, The Covell Company, Easton, Maryland
President, Broadcast Division, Allbritton Communications,
Washington, D.C.
1987
1988
1989
Class C
Hanne Merriman
Robert A. Georgine
Leroy T. Canoles, Jr.
—BALTIMORE
President, Garfinckel's, Washington, D.C.
President, Building & Construction Trades Department, AFL-CIO,
Washington, D.C.
President, Kaufman & Canoles, Norfolk, Virginia
1987
1988
1989
BRANCH
Appointed by the Federal Reserve Bank
Raymond V. Haysbert, Sr.
H. Grant Hathaway
Joseph W. Mosmiller
Charles W. Hoff III
President and Chief Executive Officer, Parks Sausage Company,
Baltimore, Maryland
Chairman of the Board, Equitable Bank, N.A., Baltimore,
Maryland
Chairman of the Board, Loyola Federal Savings and Loan
Association, Baltimore, Maryland
President and Chief Executive Officer, Farmers and Mechanics
National Bank, Frederick, Maryland
1987
1988
1988
1989
Appointed by the Board of Governors
Gloria L. Johnson
Thomas R. Shelton
John R. Hardesty, Jr.
—CHARLOTTE
Baltimore, Maryland
President, The Resource Management Group, Inc., Salisbury,
Maryland
President, Preston Energy, Inc., Kingwood, West Virginia
1987
1988
1989
BRANCH
Appointed by the Federal Reserve Bank
James M. Culberson, Jr.
J. Donald Collier
James G. Lindley
John A. Hardin
Chairman and President, The First National Bank of Randolph
County, Asheboro, North Carolina
Orangeburg, South Carolina
Chairman, South Carolina National Corporation, and Chairman
and President, The South Carolina National Bank, Columbia,
South Carolina
Chairman of the Board and President, First Federal Savings Bank,
Rock Hill, South Carolina
1987
1988
1988
1989
398
Federal Reserve Bulletin • May 1987
DISTRICT
5—Continued
—CHARLOTTE
BRANCH—Continued
Term
Expires
Dec. 31
Appointed by the Board of Governors
James E. Bostic, Jr.
G. Alex Bernhardt
Wallace J. Jorgenson
DISTRICT
Class
Division General Manager, Convenience Products Division,
Georgia-Pacific Corporation, Aiken, South Carolina
President, Bernhardt Industries, Inc., Lenoir, North Carolina
President, Jefferson-Pilot Communications Company,
Charlotte, North Carolina
1987
Chairman and Chief Executive Officer, Deposit Guaranty National
Bank and Deposit Guaranty Corporation, Jacksonville,
Mississippi
Chairman and Chief Executive Officer, First Farmers and
Merchants National Bank, Columbia, Tennessee
Vice Chairman, The National Bank of Walton County, Monroe,
Georgia
1987
1988
1989
6—ATLANTA
A
E.B. Robinson, Jr.
Virgil H. Moore, Jr.
Mary W. Walker
1988
1989
Class B
Horatio C. Thompson
Bernard F. Sliger
Paul W. Green
President, Horatio Thompson Investments, Inc., Baton Rouge,
Louisiana
President, Florida State University, Tallahassee, Florida
President and Chief Executive Officer, American Cast Iron Pipe
Company, Birmingham, Alabama
1987
President and Chief Executive Officer, Merrill Lynch Realty/
Cousins, Miami, Florida
President and Chief Operating Officer, Genuine Parts Company,
Atlanta, Georgia
President, Rock-Tenn Company, Norcross, Georgia
1987
1988
1989
Class C
Jane C. Cousins
Larry L. Prince
Bradley Currey, Jr.
—BIRMINGHAM
1988
1989
BRANCH
Appointed by the Federal Reserve Bank
Willard L. Hurley
Vacancy
Milton A. Wendland
John H. Newman
Chairman and Chief Executive Officer, First Alabama Bancshares,
Inc., Birmingham, Alabama
Owner-Operator, Autauga Farming Company, Autaugaville,
Alabama
President and Chief Executive Officer, First National Bank of
Scottsboro, Scottsboro, Alabama
1987
1988
1988
1989
Directors of Federal Reserve Banks and Branches
DISTRICT
6—Continued
—BIRMINGHAM
399
TERM
Expires
BRANCH— C o n t i n u e d
Dec
-
31
Appointed by the Board of Governors
A.G. Trammell
Roy D. Terry
Margaret E.M. Tolbert
—JACKSONVILLE
President, Alabama Labor Council, AFL-CIO, Birmingham,
Alabama
President and Chief Executive Officer, Terry Manufacturing
Company, Inc., Roanoke, Alabama
Director, Carver Research Foundation, Tuskegee University,
Tuskegee, Alabama
1987
1988
1989
BRANCH
Appointed by the Federal Reserve Bank
Buell G. Duncan, Jr.
Robert R. Deison
George W. Gibbs III
A. Bronson Thayer
Chairman, President, and Chief Executive Officer, Sun Bank,
N.A., Orlando, Florida
Chairman of the Board and President, Andrew Jackson State
Savings and Loan Association, Tallahassee, Florida
President, Atlantic Dry Dock Corporation, Jacksonville, Florida
Chairman and Chief Executive Officer, First Florida Banks, Inc.,
Tampa, Florida
1987
1988
1988
1989
Appointed by the Board of Governors
Andrew A. Robinson
E. William Nash, Jr.
Saundra H. Gray
—MIAMI
Director, Florida Institute of Education, University of North
Florida, Jacksonville, Florida
President, South-Central Operations, The Prudential Insurance
Company of America, Jacksonville, Florida
Co-Owner, Gemini Springs Farm, DeBary, Florida
1987
1988
1989
BRANCH
Appointed by the Federal Reserve Bank
Robert D. Rapaport
Robert M. Taylor
William H. Losner
James H. Robinson
Chairman, Royal Palm Savings Association, Palm Beach, Florida
Chairman and Chief Executive Officer, The Mariner Group, Inc.,
Fort Myers, Florida
President and Chief Executive Officer, The First National Bank of
Homestead, Homestead, Florida
President, Sun Bank/South Florida, N.A., Fort Lauderdale,
Florida
1987
1987
1988
1989
Appointed by the Board of Governors
Robert D. Apelgren
Sue McCourt Cobb
Jose L. Saumat
President, Apelgren Corporation, Pahokee, Florida
Attorney, Greenberg, Traurig, Askew, Hoffman, Lipoff, Rosen,
and Quentel, P.A., Miami, Florida
President, Kaufman and Roberts, Inc., Miami, Florida
1987
1988
1989
400
Federal Reserve Bulletin • May 1987
DISTRICT
6—Continued
—NASHVILLE
BRANCH
Term
Expires
Dec. 31
Appointed by the Federal Reserve Bank
Will A. Hildreth
Eugene C. Cheatham
Shirley A. Zeitlin
Dennis C. Bottorff
President and Chief Executive Officer, First National Bank of
Loudon County, Lenoir City, Tennessee
President, Advanced Integrated Technology, Inc., Nashville,
Tennessee
President, Shirley Zeitlin & Co. Realtors, Nashville, Tennessee
Chairman, Commerce Union Corporation, Nashville, Tennessee
1987
1988
1988
1989
Appointed by the Board of Governors
C. Warren Neel
Condon S. Bush
Patsy R. Williams
—NEW
ORLEANS
Dean, College of Business Administration, The University of
Tennessee, Knoxville, Tennessee
President, Bush Brothers & Company, Dandridge, Tennessee
Partner, Rhyne Lumber Company, Newport, Tennessee
1987
1988
1989
BRANCH
Appointed by the Federal Reserve Bank
James G. Boyer
Alan R. Barton
Robert M. Shofstahl
Robert S. Gaddis
Chairman, President, and Chief Executive Officer, Gulf National
Bank at Lake Charles, Lake Charles, Louisiana
President and Chief Executive Officer, Mississippi Power
Company, Gulfport, Mississippi
President and Chief Executive Officer, Pelican Homestead and
Savings Association, Metairie, Louisiana
President and Chief Executive Officer, Commercial National Bank
& Trust Co., Laurel, Mississippi
1987
1988
1988
1989
Appointed by the Board of Governors
Caroline K. Theus
Sharon A. Perlis
James A. Hefner
DISTRICT
Class
President, Inglewood Land and Development Company,
Alexandria, Louisiana
President, Sharon A. Perlis (APLC), Metairie, Louisiana
President, Jackson State University, Jackson, Mississippi
1987
Chairman of the Board and Chief Executive Officer, First National
Bank of Chicago, Chicago, Illinois
President and Chief Executive Officer, First National Bank and
Trust Company, LaPorte, Indiana
President and Chief Executive Officer, Bartonville Bank,
Bartonville, Illinois
1987
1988
1989
7—CHICAGO
A
Barry F. Sullivan
John W. Gabbert
B.F. Backlund
1988
1989
Directors of Federal Reserve Banks and Branches
DISTRICT
7—Continued
Term
Expires
Dec. 31
Class B
President and Chief Executive Officer, Mueller Company,
Decatur, Illinois
Farmer, Jefferson, Iowa
President and Chief Executive Officer, Fort Howard Paper
Company, Green Bay, Wisconsin
Edward D. Powers
Max J. Naylor
Paul J. Schierl
401
1987
1988
1989
Class C
Dean, College of Business Administration, University of Illinois at
Chicago, Chicago, Illinois
Chairman of the Board and Chief Executive Officer, Wisconsin
Electric Power Company, Milwaukee, Wisconsin
Chairman and Chief Executive Officer, USG Corporation, Chicago,
Illinois
Marcus Alexis
Charles S. McNeer
Robert J. Day
—DETROIT
1987
1988
1989
BRANCH
Appointed by the Federal Reserve Bank
Richard M. Gillett
Thomas R. Ricketts
Donald R. Mandich
Ronald D. Story
Chairman of the Board, Old Kent Financial Corporation,
Grand Rapids, Michigan
Chairman of the Board and President, Standard Federal Bank,
Troy, Michigan
Chairman and Chief Executive Officer, Comerica Bank-Detroit,
Detroit, Michigan
Chairman and President, The Ionia County National Bank of Ionia,
Ionia, Michigan
1987
1987
1988
1989
Appointed by the Board of Governors
Robert E. Brewer
Phyllis E. Peters
Richard T. Lindgren
DISTRICT
Class
8—ST.
Senior Vice President, Accounting, Administration & Financial
Services, K mart Corporation, Troy, Michigan
Director, Professional Standards Review, Touche Ross &
Company, Detroit, Michigan
President and Chief Executive Officer, Cross & Trecker
Corporation, Bloomfield Hills, Michigan
1987
1988
1989
LOUIS
A
H.L. Hembree III
Paul K. Reynolds
David W. Kemper II
Chairman of the Board and Chief Executive Officer, Arkansas Best
Corporation, Fort Smith, Arkansas
President and Chief Executive Officer, The First National Bank of
Pittsfield, Pittsfield, Illinois
Chairman and Chief Executive Officer, Commerce Bank of
St. Louis, N.A., Clayton, Missouri, and President and Chief
Executive Officer, Commerce Bancshares, Inc., Kansas City,
Missouri
1987
1988
1989
402
Federal Reserve Bulletin • May 1987
DISTRICT
S—Continued
Term
Expires
Dec. 31
Class B
Jesse M. Shaver
Robert J. Sweeney
Frank M. Mitchener, Jr.
President, JMS Corporation, Louisville, Kentucky
President and Chief Executive Officer, Murphy Oil Corporation,
El Dorado, Arkansas
President, Mitchener Farms, Inc., Sumner, Mississippi
1987
1988
Chairman of the Executive Committee, Brown Group, Inc.,
St. Louis, Missouri
Dean, School of Business, Washington University, St. Louis,
Missouri
Chairman, President, and Chief Executive Officer, General
American Life Insurance Company, St. Louis, Missouri
1987
1989
Class C
W.L. Hadley Griffin
Robert L. Virgil, Jr.
H. Edwin Trusheim
—LITTLE ROCK
1988
1989
BRANCH
Appointed by the Federal Reserve Bank
Wilbur P. Gulley, Jr.
W. Wayne Hartsfield
Robert C. Connor, Jr.
Patricia M. Townsend
Chairman of the Board, Savers Federal Savings & Loan
Association, Little Rock, Arkansas
President and Chief Executive Officer, First National Bank,
Searcy, Arkansas
President, Union National Bank of Little Rock, Little Rock,
Arkansas
President, Townsend Company, Stuttgart, Arkansas
1987
1987
1988
1989
Appointed by the Board of Governors
Sheffield Nelson
James R. Rodgers
Douglas Ward Jackson
—LOUISVILLE
Attorney at Law, Little Rock, Arkansas
Airport Manager, Little Rock Regional Airport, Little Rock,
Arkansas
President, Machen Construction Company, Little Rock, Arkansas
1987
1988
1989
BRANCH
Appointed by the Federal Reserve Bank
John E. Darnell, Jr.
R.I. Kerr, Jr.
Allan S. Hanks
Morton Boyd
Chairman of the Board, The Owensboro National Bank,
Owensboro, Kentucky
Chairman of the Board, President, and Chief Executive Officer,
Great Financial Federal, Louisville, Kentucky
Vice President, The Anderson National Bank of Lawrenceburg,
Lawrenceburg, Kentucky
President, First Kentucky National Corporation, Louisville,
Kentucky
1987
1987
1988
1989
Directors of Federal Reserve Banks and Branches
DISTRICT
8—Continued
403
TERM
Expires
—LOUISVILLE
BRANCH—
Continued
Dec 31
-
Appointed by the Board of Governors
Raymond M. Burse
Lois H. Gray
President, Kentucky State University, Frankfort, Kentucky
Chairman of the Board, James N. Gray Construction Company, Inc.,
Glasgow, Kentucky
Delegate and Past President, Owensboro Council of Labor,
Owensboro, Kentucky
Thomas A. Alvey
—MEMPHIS
1987
1988
1989
BRANCH
Appointed by the Federal Reserve Bank
Edgar H. Bailey
John P. Dulin
William H. Brandon, Jr.
Michael J. Hennessey
Chairman and Chief Executive Officer, Leader Federal Savings and
Loan Association, Memphis, Tennessee
President, First Tennessee Bank, N.A., Memphis, Memphis,
Tennessee
President, First National Bank of Phillips County, Helena,
Arkansas
President, Munro & Company, Inc., Wynne, Arkansas
1987
1987
1988
1989
Appointed by the Board of Governors
G. Rives Neblett
Katherine Hinds Smythe
Sandra B. Sanderson
DISTRICT
Class
Neblett and Havens, Attorneys at Law, Shelby, Mississippi
President, Memorial Park, Inc., Memphis, Tennessee
President and Chief Executive Officer, Sanderson Plumbing
Products, Inc., Columbus, Mississippi
1987
1988
1989
President, Citizens State Bank, Ontonagon, Michigan
President, Norwest Bank La Crosse, N.A., La Crosse, Wisconsin
President and Chief Executive Officer, First National Bank, Philip,
South Dakota
1987
1988
1989
President, Mathers Land Company, Miles City, Montana
District Staff Manager, Northwestern Bell, Minneapolis, Minnesota
Owner, Spruce Row Farm, Northwood, North Dakota
1987
1988
1989
Chairman, President, and Chief Executive Officer, Super Valu
Stores, Inc., Minneapolis, Minnesota
Chairman and Chief Executive Officer, Cray Research Inc.,
Minneapolis, Minnesota
President Emeritus, Macalester College, St. Paul, Minnesota
1987
9—MINNEAPOLIS
A
Thomas M. Strong
Duane W. Ring
Charles W. Ekstrum
Class B
William L. Mathers
Richard L. Falconer
Keith D. Bjerke
Class C
Michael W. Wright
John A. Rollwagen
John B. Davis, Jr.
1988
1989
404
Federal Reserve Bulletin • May 1987
DISTRICT
9—Continued
—HELENA
BRANCH
Term
Expires
Dec. 31
Appointed by the Federal Reserve Bank
F. Charles Mercord
President and Chief Executive Officer, First Federal Savings Bank
of Montana, Kalispell, Montana
President and Chief Executive Officer, First Interstate Bank of
Billings, N.A., Billings, Montana
President and Chief Executive Officer, Pacific Hide and Fur
Corporation, Great Falls, Montana
Robert H. Waller
Noble E. Vosburg
1987
1988
1988
Appointed by the Board of Governors
Warren H. Ross
Marcia S. Anderson
DISTRICT
Class
President, Ross 87 Ranch, Inc., Chinook, Montana
President, Bridger Canyon Stallion Station, Inc., Bozeman,
Montana
10—KANSAS
1987
1988
CITY
A
Donald D. Hoffman
Robert L. Hollis
Harold L. Gerhart, Jr.
Chairman of the Board, Central Bank of Denver, Denver, Colorado
Chairman of the Board and Chief Executive Officer, First National
Bank & Trust Co., Okmulgee, Oklahoma
President and Chief Executive Officer, First National Bank,
Newman Grove, Nebraska
1987
1988
Partner, Evans Grain Company, Salina, Kansas
Chairman and President, Public Service Company of New Mexico,
Albuquerque, New Mexico
Chairman and Chief Executive Officer, Fleming Companies, Inc.,
Oklahoma City, Oklahoma
1987
1988
Chairman of the Board, Lueder Construction Company, Omaha,
Nebraska
President and Chief Executive Officer, Hallmark Cards, Inc.,
Kansas City, Missouri
President and Chief Executive Officer, Marion Laboratories, Inc.,
Kansas City, Missouri
1987
1989
Class B
S. Dean Evans, Sr.
Jerry D. Geist
Richard D. Harrison
1989
Class C
Robert G. Lueder
Irvine O. Hockaday, Jr.
Fred W. Lyons, Jr.
—DENVER
1988
1989
BRANCH
Appointed by the Federal Reserve Bank
Junius F. Baxter
George S. Jenks
W. Richard Scarlett III
Roger L. Reisher
Chairman of the Board and Chief Executive Officer, Bank Western
Federal Savings Bank, Denver, Colorado
President and Chief Executive Officer, Sunwest Financial Services,
Inc., Albuquerque, New Mexico
Chairman and President, Jackson State Bank, Jackson Hole,
Wyoming
Co-Chairman, FirstBank Holding Company of Colorado,
Lake wood, Colorado
1987
1988
1988
1989
Directors of Federal Reserve Banks and Branches
DISTRICT
10—Continued
405
TERM
Expires
—DENVER BRANCH—Continued
Dec. 31
Appointed by the Board of Governors
James E. Nielson
President and Chief Executive Officer, JN Incorporated, Cody,
Wyoming
Attorney, Williams, Turner, & Holmes, P.C., Grand Junction,
Colorado
Longmont, Colorado
Anthony W. Williams
James C. Wilson
—OKLAHOMA
CITY
Appointed by the Federal Reserve
William H. Crawford
William O. Alexander
W. Dean Hidy
1987
1988
1989
BRANCH
Bank
Chairman and Chief Executive Officer, First National Bank and
Trust Company, Frederick, Oklahoma
Chairman and Chief Executive Officer, Continental Federal
Savings & Loan Association, Oklahoma City, Oklahoma
Chairman of the Board, Triad Bank, N.A., Tulsa, Oklahoma
1987
1988
1988
Appointed by the Board of Governors
Patience S. Latting
John F. Snodgrass
—OMAHA
Oklahoma City, Oklahoma
President and Trustee, The Samuel Roberts Noble Foundation, Inc.,
Ardmore, Oklahoma
BRANCH
Appointed by the Federal Reserve
John T. Selzer
Charles H. Thorne
John R. Cochran
1987
1988
Bank
President, Scottsbluflf National Bank and Trust Company,
Scottsbluff, Nebraska
Chairman of the Board and Chief Executive Officer, First Federal
Savings and Loan Association of Lincoln, Lincoln, Nebraska
President and Chief Executive Officer, Norwest Bank Nebraska,
N.A., Omaha, Nebraska
1987
1987
1988
Appointed by the Board of Governors
Kenneth L. Morrison
Janice D. Stoney
DISTRICT
Class
President, Morrison Enterprises, Hastings, Nebraska
Executive Vice President and Chief Operating Officer,
Northwestern Bell Telephone Company, Omaha, Nebraska
1987
1988
Director and Consultant, First National Bank of Amarillo,
Amarillo, Texas
Chairman and Chief Executive Officer, Gulf National Bank,
Texas City, Texas
Chairman of the Board, Tanglewood Bank, N.A., Houston, Texas
1987
11—DALLAS
A
Gene Edwards
Charles T. Doyle
Robert G. Greer
1988
1989
406
Federal Reserve Bulletin • May 1987
DISTRICT
11—Continued
Term
Expires
Dec. 31
Class B
Robert L. Pfluger
Robert Ted Enloe III
Gary E. Wood
Rancher, San Angelo, Texas
President, Lomas & Nettleton Financial Corporation, Dallas,
Texas
Director of Governmental Relations and Professor of Finance,
Baylor University, Waco, Texas
1987
1988
Chairman of the Board and Chief Executive Officer, Westmark
Systems, Inc., Austin, Texas
President, Cityplace Development Corporation, Dallas, Texas
Chairman and Chief Executive Officer, Linbeck Construction
Corporation, Houston, Texas
1987
1989
Class C
Bobby R. Inman
Hugh G. Robinson
Leo E. Linbeck, Jr.
—EL PASO
1988
1989
BRANCH
Appointed by the Federal Reserve Bank
Henry B. Ellis
Gerald W. Thomas
Humberto F. Sambrano
David L. Stone
President and Chief Credit Officer, MBank El Paso, N.A.,
El Paso, Texas
President Emeritus and Professor of Animal Range Science, Center
for International Programs, New Mexico State University,
Las Cruces, New Mexico
Partner, Urban General Contractors, Inc., El Paso, Texas
President, The Portales National Bank, Portales, New Mexico
1987
1987
1988
1989
Appointed by the Board of Governors
Mary Carmen Saucedo
Peyton Yates
John R. Sibley
—HOUSTON
Vice President, Saucedo Bros., Inc., El Paso, Texas
President, Yates Drilling Company, Artesia, New Mexico
President, Delaware Mountain Enterprises, Carlsbad, New Mexico
1987
1988
1989
BRANCH
Appointed by the Federal Reserve Bank
Thomas B. McDade
David E. Sheffield
Jeff Austin, Jr.
Jenard M. Gross
Vice Chairman (Retired), Texas Commerce Bancshares, Inc.,
Houston, Texas
Director, First Victoria National Bank, Victoria, Texas
President, First National Bank of Jacksonville, Jacksonville, Texas
Chairman of the Board and Chief Executive Officer, United
Savings Association of Texas, Houston, Texas
1987
1987
1988
1989
Appointed by the Board of Governors
Andrew L. Jefferson, Jr.
Gilbert D. Gaedcke, Jr.
Walter M. Mischer, Jr.
Attorney, Jefferson, Mims, Plummer, and Rice, Houston, Texas
Chairman of the Board and Chief Executive Officer, Gaedcke
Equipment Company, Houston, Texas
President, The Mischer Corporation, Houston, Texas
1987
1988
1989
Directors of Federal Reserve Banks and Branches
DISTRICT
11—Continued
407
TERM
Expires
Dec. 31
—SAN ANTONIO
BRANCH
Appointed by the Federal Reserve Bank
President and Chief Executive Officer, Barbee-Neuhaus Implement
Company, Weslaco, Texas
Senior Chairman of the Board, RepublicBank San Antonio, N.A.,
San Antonio, Texas
Rancher, San Antonio, Texas
Chairman of the Board and Chief Executive Officer, First City
Bank of Corpus Christi, Corpus Christi, Texas
Joe D. Barbee
Robert T. Rork
Jane Flato Smith
C. Ivan Wilson
1987
1987
1988
1989
Appointed by the Board of Governors
Ruben M. Garcia
Robert F. McDermott
Patricia P. Lebermann
DISTRICT
12—SAN
Chief Executive Officer, Modern Machine Shop, Inc., Laredo,
Texas
Chairman of the Board and President, United Services Automobile
Association, San Antonio, Texas
President, Patterson Investments, Inc., Austin, Texas
1987
1988
1989
FRANCISCO
Class A
Donald J. Gehb
Spencer F. Eccles
Rayburn S. Dezember
President and Chief Executive Officer, Alameda Bancorporation
and Alameda First National Bank, Alameda, California
Chairman and Chief Executive Officer, First Security Corporation,
Salt Lake City, Utah
Chairman, President, and Chief Executive Officer, Central Pacific
Corporation, and Chairman, American National Bank,
Bakersfield, California
1987
1988
1989
Class B
George H. Weyerhaeuser
Togo W. Tanaka
John C. Hampton
President and Chief Executive Officer, Weyerhaeuser Company,
Tacoma, Washington
Chairman, Gramercy Enterprises, Inc., Los Angeles, California
President, Willamina Lumber Company, Portland, Oregon
1987
1988
1989
Class C
Fred W. Andrew
Carolyn S. Chambers
Robert F. Erburu
Partner, Andrew & Williamson Sales Co., Bakersfield, California
President and Chief Executive Officer, Chambers Communications
Corp., Eugene, Oregon
Chairman of the Board and Chief Executive Officer, The Times
Mirror Company, Los Angeles, California
1987
1988
1989
408
Federal Reserve Bulletin • May 1987
DISTRICT
12—Continued
—Los ANGELES BRANCH
TERM
Expires
Dec. 31
Appointed by the Federal Reserve Bank
Chairman of the Board, CalFed, Inc. and California Federal
Savings and Loan Association, Los Angeles, California
Chairman of the Board and Chief Executive Officer, Valley
National Bank of Arizona, Phoenix, Arizona
Chairman, Tooley & Company, Investment Builders, Los Angeles,
California
Chairman of the Board, President, and Chief Executive Officer,
National Bank of Long Beach, Long Beach, California
Robert R. Dockson
Howard C. McCrady
William L. Tooley
Fred D. Jensen
1987
1988
1988
1989
Appointed by the Board of Governors
Richard C. Seaver
Thomas R. Brown, Jr.
Yvonne Brathwaite Burke
-PORTLAND
Chairman, Hydril Company, Los Angeles, California
Chairman of the Board, Burr-Brown Corporation, Tucson, Arizona
Senior Partner, Burke, Robinson & Pearman, Los Angeles,
California
1987
1988
1989
BRANCH
Appointed by the Federal Reserve Bank
John A. Elorriaga
G. Dale Weight
Herman C. Bradley, Jr.
Wayne E. Phillips, Jr.
Chairman of the Board and Chief Executive Officer, United States
National Bank of Oregon, Portland, Oregon
Chairman of the Board and Chief Executive Officer, Benjamin
Franklin Savings and Loan Association, Portland, Oregon
President and Chief Executive Officer, Tri-County Banking
Company, Junction City, Oregon
Vice President, Phillips Ranch, Inc., Baker, Oregon
1987
1987
1988
1989
Appointed by the Board of Governors
Sandra A. Suran
G. Johnny Parks
Paul E. Bragdon
—SALT LAKE CITY
Partner, Peat, Marwick, Mitchell & Co., Portland, Oregon
Former Northwest Regional Director, International
Longshoremen's & Warehousemen's Union, Portland, Oregon
President, Reed College, Portland, Oregon
1987
1988
1989
BRANCH
Appointed by the Federal Reserve Bank
Lela M. Ence
Fred C. Humphreys
Gerald R. Christensen
Ronald S. Hanson
Executive Director, University of Utah Alumni Association,
Salt Lake City, Utah
Director and Former Chairman of the Board, Moore Financial
Group, Boise, Idaho
Chairman and President, First Federal Savings and Loan
Association, Salt Lake City, Utah
President, Zions First National Bank, Salt Lake City, Utah
1987
1987
1988
1989
Directors
DISTRICT
12—Continued
—SALT
Robert N. Pratt
—SEATTLE
BRANCH—Continued
Governors
President, Wheeler Machinery Company, Salt Lake City, Utah
President and Chief Executive Officer, Mountain Fuel Supply
Company, Salt Lake City, Utah
President, Moriah Enterprises, Inc., Bountiful, Utah
by the Federal Reserve
William W. Philip
H.H. Larison
by the Board of
John W. Ellis
Byron I. Mallott
Carol A. Nygren
1987
1988
1989
BRANCH
John N. Nordstrom
William S. Randall
Appointed
409
TERM
Expires
Dec. 31
LAKE CITY
Appointed by the Board of
Don M. Wheeler
D.N. Rose
Appointed
of Federal Reserve Banks and Branches
Bank
Co-Chairman of the Board, Nordstrom, Inc., Seattle, Washington
Chairman, President and Chief Executive Officer, First Interstate
Bank of Washington, N.A., Seattle, Washington
Chairman of the Board and Chief Executive Officer, Puget Sound
Bancorp, Tacoma, Washington
President, Columbia Paint Company, Spokane, Washington
1987
1987
1988
1989
Governors
President and Chief Executive Officer, Puget Sound Power & Light
Company, Bellevue, Washington
Chief Executive Officer, Sealaska Corporation, Juneau, Alaska
Managing Partner, Laventhol & Horwath, Seattle, Washington
1987
1988
1989
1
Financial and Business Statistics
WEEKLY REPORTING
CONTENTS
Domestic
MONEY
Financial
Statistics
STOCK AND BANK
CREDIT
A3 Reserves, money stock, liquid assets, and debt
measures
A4 Reserves of depository institutions, Reserve
Bank credit
A5 Reserves and borrowings—Depository
institutions
A5 Selected borrowings in immediately available
funds—Large member banks
POLICY
INSTRUMENTS
A6 Federal Reserve Bank interest rates
A7 Reserve requirements of depository institutions
A8 Dates of removal of interest rate ceilings on
deposits of federally insured institutions
A9 Federal Reserve open market transactions
FEDERAL
RESERVE
BANKS
A10 Condition and Federal Reserve note statements
All Maturity distribution of loan and security
holdings
MONETAR
Y AND CREDIT A GGREGA TES
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock, liquid assets, and debt measures
A15 Bank debits and deposit turnover
A16 Loans and securities—All commercial banks
COMMERCIAL
BANKING
INSTITUTIONS
A17 Major nondeposit funds
A18 Assets and liabilities, last-Wednesday-of-month
series
A19
A20
A21
A22
COMMERCIAL
BANKS
Assets and liabilities
All reporting banks
Banks in New York City
Branches and agencies of foreign banks
Gross demand deposits—individuals,
partnerships, and corporations
FINANCIAL
MARKETS
A23 Commercial paper and bankers dollar
acceptances outstanding
A23 Prime rate charged by banks on short-term
business loans
A24 Interest rates—money and capital markets
A25 Stock market—Selected statistics
A26 Selected financial institutions—Selected assets
and liabilities
FEDERAL
FINANCE
A28
A29
A30
A30
Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types and
ownership
A31 U.S. government securities dealers—
Transactions
A32 U.S. government securities dealers—Positions
and financing
A33 Federal and federally sponsored credit
agencies—Debt outstanding
SECURITIES MARKETS
AND
CORPORATE
FINANCE
A34 New security issues—State and local
governments and corporations
A35 Open-end investment companies—Net sales and
asset position
A35 Corporate profits and their distribution
2
Federal Reserve Bulletin • May 1987
A36 Nonfinancial corporations—Assets and
liabilities
A36 Total nonfarm business expenditures on new
plant and equipment
A37 Domestic finance companies—Assets and
liabilities and business credit
A54 Foreign official assets held at Federal Reserve
Banks
A55 Foreign branches of U.S. banks—Balance sheet
data
A57 Selected U.S. liabilities to foreign official
institutions
REAL
REPORTED
ESTATE
A38 Mortgage markets
A39 Mortgage debt outstanding
CONSUMER
INSTALLMENT
CREDIT
A40 Total outstanding and net change
A41 Terms
FLOW OF
BY BANKS
IN THE UNITED
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A61 Banks' own claims on unaffiliated foreigners
A62 Claims on foreign countries—Combined
domestic offices and foreign branches
A57
A58
A60
A61
REPORTED BY NONBANKING
ENTERPRISES IN THE UNITED
FUNDS
BUSINESS
STATES
A42 Funds raised in U.S. credit markets
A43 Direct and indirect sources of funds to credit
markets
A63 Liabilities to unaffiliated foreigners
A64 Claims on unaffiliated foreigners
Domestic
Nonfinancial
SECURITIES
SELECTED
MEASURES
Statistics
A44 Nonfinancial business activity—Selected
measures
A45 Labor force, employment, and unemployment
A46 Output, capacity, and capacity utilization
A47 Industrial production—Indexes and gross value
A49 Housing and construction
A50 Consumer and producer prices
A51 Gross national product and income
A52 Personal income and saving
International
SUMMARY
Statistics
STATISTICS
A53 U.S. international transactions—Summary
A54 U.S. foreign trade
A54 U.S. reserve assets
STATES
HOLDINGS
AND
TRANSACTIONS
A65 Foreign transactions in securities
A66 Marketable U.S. Treasury bonds and notes—
Foreign transactions
INTEREST AND EXCHANGE
RATES
A67 Discount rates of foreign central banks
A67 Foreign short-term interest rates
A68 Foreign exchange rates
A69 Guide to Tabular
Statistical Releases,
Tables
SPECIAL
Presentation,
and Special
TABLES
A70 Terms of lending at commercial banks,
February 1987
A76 Assets and liabilities of U.S. branches and
agencies of foreign banks, December 31, 1986
Money Stock and Bank Credit
1.10
A3
RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent) 1
Item
1986
Q2
Q1
1
2
3
4
Reserves of depository
Total
Required
Nonborrowed
Monetary base 3
5
6
7
8
9
Concepts
Ml
M2
M3
L
Debt
of money,
Nontransaction
10 In M2 5
11 In M3 only 6
institutions2
liquid assets,
and
1986
Q3
Q4
Nov.
Dec.
Jan.
Feb.
13. l r
12.3
19.2r
8.3 r
17.8r
19.8
17.7r
8.9 r
22.9 r
23.8 r
23.2 r
10.0r
21.5
19.9
22.4
10.3
13.7
13.4
17.9
9.2
32.6
21.(f
35.2
13.4
40.5
32.3
39.3
14.1
21.6 r
28.8
2i.y
15.9r
-3.3
-6.4
-2.8
7.1
8.8
5.3
7.7
8.1
15.4r
15.5
9.4
8.7
7.1 r
10.2r
16.5
10.6
9.6 r
8.0 r
12.3r
17.0
9.2 r
8.0 r
8.3 r
12. l r
14.4
10.7r
7.2
7.7 r
9.9 r
18.8
6.4 r
6.4 r
7.8 r
12.3r
30.5
10.6 r
10.3r
9.6 r
15.4r
11.7
9.5 r
9.1 r
9.3
13.3
-.7
-.3
1.3
n.a.
n.a.
4.2
17.3
7.4
5.9 r
8.6
5.8 r
6.6 r
3.4
9.5 r
-6.8r
2.2 r
6.3 r
3.7 r
9.1 r
8.8 r
7.8 r
-.2
7.4
41.2
.0
16.0r
34.5
-7.2
.0
debt4
components
Time and savings
deposits
Commercial banks
Savings 7
Small-denomination time 8
Large-denomination time 9 1 0
Thrift institutions
15
Savings 7
16
Small-denomination time
17
Large-denomination time 9
12
13
14
Debt
components4
18 Federal
19 Nonfederal
20 Total loans and securities at commercial banks 11
1.9
3.9
16.0
13.4
-2.5
-3.5
25.0
-7.5
-1.5
36.9
-10.7
.4
40.0
-13.2
-6.2
36.2
-13.3
7.1
34.4
-3.9
7.9 r
5.9
4.8
6.6
16.0
.3
11.2
21.0
-3.4
2.8
23.0
-6.4
-7.3
25.8
-8.2
-9.8
21.7
-8.2
-12.2
19.6
-6.8
-5.4
29.5
-4.7r
-10.1
33.2
-4.7
-14.0
17.0
14.9r
12.7
11.6
9.8
4.1
18.9r
14.3r
17.4
8.0
14.9
18.4
n.a.
n.a.
2.2
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter.
2. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
3. The monetary base not adjusted for discontinuities consists of total
reserves plus required clearing balances and adjustments to compensate for float
at Federal Reserve Banks plus the currency component of the money stock less
the amount of vault cash holdings of thrift institutions that is included in the
currency component of the money stock plus, for institutions not having required
reserve balances, the excess of current vault cash over the amount applied to
satisfy current reserve requirements. After the introduction of contemporaneous
reserve requirements (CRR), currency and vault cash figures are measured over
the weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock plus the remaining items seasonally
adjusted as a whole.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits
at all commercial banks other than those due to domestic banks, the U.S.
government, and foreign banks and official institutions less cash items in the
process of collection and Federal Reserve float; and (4) other checkable deposits
(OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer
service (ATS) accounts at depository institutions, credit union share draft
accounts, and demand deposits at thrift institutions. The currency and demand
deposit components exclude the estimated amount of vault cash and demand
deposits respectively held by thrift institutions to service their OCD liabilities.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, Money Market Deposit Accounts
(MMDAs), savings and small-denomination time deposits (time deposits—including retail RPs—in amounts of less than $100,000), and balances in both taxable and
tax-exempt general purpose and broker/dealer money market mutual funds.
Excludes individual retirement accounts (IRA) and Keogh balances at depository
institutions and money market funds. Also excludes all balances held by U.S.
Oct.
1987
14.5
11.7r
10.5r
12.3r
12.l r
9.1
9.6 r
10.0^
2.2
15.2r
11.4r
8.9 r
commercial banks, money market funds (general purpose and broker/dealer),
foreign governments and commercial banks, and the U.S. government. Also
subtracted is a consolidation adjustment that represents the estimated amount of
demand deposits and vault cash held by thrift institutions to service their time and
savings deposits.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted is
a consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are based on monthly averages. Growth rates for debt reflect adjustments for
discontinuities over time in the levels of debt presented in other tables.
5. Sum of overnight RPs and Eurodollars, money market fund balances
(general purpose and broker/dealer), MMDAs, and savings and small time
deposits less the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposit liabilities.
6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents,
money market fund balances (institution-only), less a consolidation adjustment
that represents the estimated amount of overnight RPs and Eurodollars held by
institution-only money market mutual funds.
7. Excludes MMDAs.
8. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All IRA and Keogh accounts at commercial
banks and thrifts are subtracted from small time deposits.
9. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
10. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
11. Changes calculated from figures shown in table 1.23.
A4
DomesticNonfinancialStatistics • May 1987
1.11
RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT
Millions of dollars
Monthly averages of
daily figures
Factors
Weekly averages of daily figures for week ending
1987
1986
1987
Dec.
Jan.
Feb.
Jan. 14
Jan. 21
Jan. 28
Feb. 4
Feb. 11
Feb. 18
Feb. 25
226,527
230,490
222,882
229,012
227,489
234,201
228,291
221,303
222,021
219,067
199,939
197,057
2,882
8,129
7,829
300
0
829
1,302
16,328
11,065
5,018
17,541
202,966
199,842
3,124
8,268
7,786
482
0
586
1,712
16,958
11,060
5,018
17,593
195,023
194,910
113
7,750
7,719
31
0
554
2,085
17,470
11,070'
5,018
17,652
203,060
200,393
2,667
8,036
7,829
207
0
311
751
16,854
11,058
5,018
17,583
201,377
200,589
788
7,862
7,798
64
0
398
1,051
16,801
11,059
5,018
17,597
203,376
200,250
3,126
8,398
7,719
679
0
979
4,324
17,123
11,059
5,018
17,611
200,792
198,928
1,864
8,250
7,719
531
0
448
931
17,871
11,061'
5,018
17,625
194,738
194,738
0
7,719
7,719
0
0
401
530
17,914
11,059'
5,018
17,639
194,716
194,716
0
7,719
7,719
0
0
745
865
17,975
11,066'
5,018
17,653
193,374
193,374
0
7,719
7,719
0
0
614
544
16,817
11,082'
5,018
17,667
209,228
435
207,943'
456'
206,45c
484'
208,757'
459'
206,954'
458'
205,929'
461'
205,645'
468'
206,422'
476'
206,984'
480'
206,477'
3,658
232
9,824
226
4,834
228
4,306
221
9,302
217
16,853
230
12,895
241
3,832
202
4,271
248
4,208
219
2,230
477
2,353
506
2,519
424
2,619
351
2,268
394
2,183
460
2,088
460
3,726
405
2,168
373
2,101
399
SUPPLYING RESERVE F U N D S
1 Reserve Bank credit
2
U.S. government securities 1
3
Bought outright
4
Held under repurchase a g r e e m e n t s . . . .
5
Federal agency obligations
6
Bought outright
7
Held under repurchase a g r e e m e n t s . . . .
8
Acceptances
9
Loans
10
Float
11
Other Federal Reserve assets
12 Gold stock 2
13 Special drawing rights certificate a c c o u n t . . . .
14 Treasury currency outstanding
ABSORBING RESERVE F U N D S
15 Currency in circulation
16 Treasury cash holdings 2
Deposits, other than reserve balances, with
Federal Reserve Banks
17
Treasury
18
Foreign
19
Service-related balances and
adjustments
20
Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks 3
4 9 4r
6,404
6,412
6,602
6,452
6,360
6,451
7,087
6,973
6,243
6,421
37,488
36,441
35,081
39,507
35,210
35,323
33,110
32,983
34,980
32,514
End-of-month figures
1987
1986
Dec.
Wednesday figures
Jan.
1987
Feb.
Jan. 14
Jan. 21
Jan. 28
Feb. 4
Feb. 11
Feb. 18
Feb. 25
SUPPLYING RESERVE F U N D S
23 Reserve Bank credit
24
25
26
27
28
29
30
31
32
33
U.S. government securities 1
Bought outright
Held under repurchase a g r e e m e n t s . . . .
Federal agency obligations
Bought outright
Held under repurchase a g r e e m e n t s . . . .
Acceptances
Loans
Float
Other Federal Reserve assets
34 Gold stock 2
35 Special drawing rights certificate account
36 Treasury currency outstanding
...
241,760
230,331
220,180
230,747
231,483
234,730
224,675
220,661
222,443
216,786
211,316
197,625
13,691
10,143
7,829
2,314
0
1,565
1,261
17,475
202,486
199,318
3,168
8,576
7,719
857
0
513
716
18,040
194,178
194,178
0
7,719
7,719
0
0
514
1,023
16,746
204,608
198,183
6,425
8,206
7,829
377
0
325
333
17,275
204,438
202,032
2,406
7,922
7,719
203
0
382
1,823
16,918
204,412
201,565
2,847
8,442
7,719
723
0
3,923
756
17,197
197,818
197,818
0
7,719
7,719
0
0
361
978
17,799
194,122
194,122
0
7,719
7,719
0
0
452
337
18,031
195,295
195,295
0
7,719
7,719
0
0
446
2,125
16,858
190,043
190,043
0
7,719
7,719
0
0
1,239
935
16,850
11,064
5,018
17,567
11,062
5,018
17,623
11,056
5,018
17,595
11,059
5,018
17,609
11,059
5,018
17,623
207,841'
458'
206,621'
460'
205,621'
466'
11,085'
5,018
17,679
11,061'
5,018
17,637
11,059'
5,018
17,651
11,074'
5,018
17,665
11,085'
5,018
17,679
206,150'
475'
206,819'
479'
207,312'
484'
206,223'
507'
ABSORBING RESERVE F U N D S
37 Currency in circulation
38 Treasury cash holdings 2
Deposits, other than reserve balances with
Federal Reserve Banks
39
Treasury
40
Foreign
41
Service-related balances and
adjustments
42
Other
43 Other Federal Reserve liabilities and
capital
44 Reserve balances with Federal
Reserve Banks 3
211,995
427
205,355'
465'
205,988'
5i(y
7,588
287
15,746
226
3,482
201
5,549
226
15,742
240
17,744
236
5,310
338
3,541
177
5,370
222
4,151
172
1,812
917
1,786
453
1,799
539
1,814
359
1,804
330
1,804
517
1,786
423
1,786
402
1,800
479
1,799
640
6,088
7,201
6,110
6,298
6,157
6,303
7,033
6,124
6,085
6,214
46,295
32,802
35,334
41,872
33,816
35,740
36,877
35,060
34,448
30,861
1. Includes securities loaned—fully guaranteed by U.S government securities
pledged with Federal Reserve Banks—and excludes any securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Revised for periods between October 1986 and February 1987. During this
interval, outstanding gold certificates were inadvertently in excess of the gold
stock. Revised data not included in this table are available from the Division of
Research and Statistics, Banking Section.
3. Excludes required clearing balances and adjustments to compensate for
float.
NOTE. For amounts of currency and coin held as reserves, see table 1.12.
Money Stock and Bank Credit
1.12
RESERVES AND BORROWINGS
A5
Depository Institutions
Millions of dollars
Monthly averages 8
Reserve classification
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks'
Total vault cash 2
Vault cash used to satisfy reserve requirements 3 .
Surplus vault cash 4
Total reserves 5
Required reserves
Excess reserve balances at Reserve Banks 6
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks 7
1984
1985
1986
Dec.
Dec.
Dec.
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
21,738
22,316
18,958
3,358
40,696
39,843
853
3,186
113
2,604
27,620
22,956
20,522
2,434
48,142
47,085
1,058
1,318
56
499
37,360
24,071
22,199
1,872
59,560
58,191
1,369
827
38
303
30,313
23,098
20,716
2,381
51,029
50,118
910
741
116
378
30,165
23,451
21,112
2,339
51,277
50,538
740
872
144
465
31,922
23,384
21,267
2,117
53,189
52,463
726
1,008
137
570
32,947
23,753
21,676
2,078
54,623
53,877
746
841
99
497
34,803
23,543
21,595
1,947
56,399
55,421
978
752
70
418
37,360
24,071
22,199
1,872
59,560
58,191
1,369
827
38
303
36,584
25,049
23,084
1,965
59,668
58,600
1,068
580
34
225
1986
1987
Biweekly averages of daily figures for weeks ending
1986
11
12
13
14
15
16
17
18
19
20
Reserve balances with Reserve Banks'
Total vault cash 2
Vault cash used to satisfy reserve requirements 3 .
Surplus vault cash 4
Total reserves 5
Required reserves
Excess reserve balances at Reserve Banks 6
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks 7
1987
Nov. 19
Dec. 3
Dec. 17
Dec. 31
Jan. 14
Jan. 28
Feb. 11
Feb. 25
34,945
23,405
21,570
1,835
56,515
55,599
916
811
68
437
35,189
23,871
21,806
2,065
56,995
55,865
1,130
610
63
368
36,527
23,458
21,725
1,733
58,251
57,511
740
514
34
310
38,659
24,729
22,758
1,971
61,417
59,369
2,048
1,186
37
282
38,710
24,583
22,815
1,768
61,525
60,680
845
505
28
215
35,228
25,028
23,012
2,017
58,239
57,033
1,206
689
36
227
32,991
27,327
24,677
2,650
57,667
56,208
1,459
425
56
265
33,742
25,237
22,857
2,380
56,599
55,530
1,070
680
81
299
1. Excludes required clearing balances and adjustments to compensate for
float.
2. Dates refer to the maintenance periods in which the vault cash can be used to
satisfy reserve requirements. Under contemporaneous reserve requirements,
maintenance periods end 30 days after the lagged computation periods in which
the balances are held.
3. Equal to all vault cash held during the lagged computation period by
institutions having required reserve balances at Federal Reserve Banks plus the
amount of vault cash equal to required reserves during the maintenance period at
institutions having no required reserve balances.
4. Total vault cash at institutions having no required reserve balances less the
amount of vault cash equal to their required reserves during the maintenance
period.
5. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash used to satisfy reserve
requirements. Such vault cash consists of all vault cash held during the lagged
1.13
Mar. 1 \P Mar. 25
35,379
23,662
21,579
2,083
56,958
56,018
940
466
83
275
34,803
24,077
22,031
2,046
56,834
55,966
868
528
96
263
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy
reserve requirements less required reserves.
7. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
8. Before February 1984, data are prorated monthly averages of weekly
averages; beginning February 1984, data are prorated monthly averages of
biweekly averages.
NOTE. These data also appear in the Board's H.3 (502) release. For address, see
inside front cover.
SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS
Large Member Banks'
Averages of daily figures, in millions of dollars
1987 week ending Monday
By maturity and source
Jan. 12
1
2
3
4
Federal funds purchased, repurchase agreements, and other
selected borrowing in immediately available funds
From commercial banks in the United States
For one day or under continuing contract
For all other maturities
From other depository institutions, foreign banks and
foreign official institutions, and United States
government agencies
For one day or under continuing contract
For all other maturities
Jan. 19
Jan. 26
Feb. 2
Feb. 9
Feb. W
Feb. 23
Mar. 2
Mar. 9
84,218
7,915
81,469
8,788
78,809
8,331
78,255
8,052
80,428
8,229
76,927
8,764
77,242
8,315
75,032
9,130
80,515
8,675
37,498
6,646
35,447
7,236
32,459
7,220
38,995
6,175
39,005
5,920
39,000
6,603
39,390
6,021
40,790
6,631
43,030
6,492
Repurchase agreements on United States
government
and federal agency securities in immediately
available funds
Brokers and nonbank dealers in securities
For one day or under continuing contract
For all other maturities
All other customers
For one day or under continuing contract
For all other maturities
12,948
7,731
11,670
9,759
13,593
9,611
13,194
9,043
12,909
9,734
13,906
10,469
14,289
9,155
14,018
10,559
12,683
9,618
30,806
10,247
29,307
10,097
28,291
10,719
28,016
10,690
27,793
10,431
26,148
10,623
27,380
9,983
27,146
10,120
27,345
9,674
MEMO: Federal funds loans and resale agreements in
immediately available funds in maturities of one day
or under continuing contract
9 To commercial banks in the United States
10 To all other specified customers 2
33,777
10,424
30,719
10,219
29,211
11,606
34,026
12,671
31,178
10,978
28,123
12,235
28,591
11,852
27,321
11,786
27,993
10,762
5
6
7
8
1. Banks with assets of $1
billion or more as of Dec. 31, 1977.
2. Brokers and nonbank dealers in securities; other depository institutions;
foreign banks and official institutions; and United States government agencies.
A6
1.14
DomesticNonfinancialStatistics • May 1987
FEDERAL RESERVE BANK INTEREST RATES
Percent per annum
Current and previous levels
Extended credit 2
Short-term adjustment credit
and seasonal credit'
Federal Reserve
Bank
Next 90 days
of borrowing
First 60 days
of borrowing
After 150 days
Rate on
3/25/87
Effective
date
Previous
rate
Rate on
3/25/87
Previous
rate
Rate on
3/25/87
Previous
rate
Rate on
3/25/87
51/2
8/21/86
8/21/86
8/22/86
8/21/86
8/21/86
8/21/86
6
51/2
6
6'/2
7
71/2
Boston
N e w York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City . . . .
Dallas
San F r a n c i s c o . . .
5»/2
8/21/86
8/22/86
8/21/86
8/21/86
8/21/86
8/21/86
6
51/2
6!/2
6
Range of rates in recent years
Effective date
In effect Dec. 31, 1973 ,
1974— Apr. 25
30
Dec. 9
16
6
10
24
Feb. 5
7
Mar. 10
14
May 16
23
1975— Jan.
1976— Jan.
19
23
Nov. 22
26
1977— Aug. 30
il
Sept. 2
Oct. 26
1978— Jan.
9
20
May 11
12
3
July
July 10
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
71/2
71/2-8
8
71/2
8
8
7 3 A-8
73/4
3
7i/4-7 /4
7i/4-73/4
71/4
63/4-7 VA
63/4
61/4-63/4
61/4
6-61/4
6
73/4
73/4
73/4
71/4
71/4
63/4
63/4
61/4
61/4
6
6
51/2-6
51/2
51/2
51/2
5V4-5V2 5'/4
51/4
51/4
5'/4-53/4
51/4-53/4
53/4
6
51/4
53/4
53/4
6
6-6!/2
6V2
61/2
61/2-7
7
7-71/4
7 l /4
61/2
7
7
71/4
71/4
Effective date
1978— Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
1979— July 20
Aug. 17
20
Sept. 19
21
Oct.
8
10
1980— Feb. 15
19
May 29
30
June 13
16
July 28
29
Sept. 26
Nov. 17
Dec. 5
8
1981— May
Nov.
Dec.
5
8
2
6
4
1. After May 19, 1986, the highest rate within the structure of discount rates
may be charged on adjustment credit loans of unusual size that result from a major
operating problem at the borrower's facility.
A temporary simplified seasonal program was established on Mar. 8, 1985, and
the interest rate was a fixed rate Vi percent above the rate on adjustment credit.
The program was re-established on Feb. 18, 1986 and again on Jan. 28, 1987; the
rate may be either the same as that for adjustment credit or a fixed rate '/> percent
higher.
2. Applicable to advances when exceptional circumstances or practices involve
only a particular depository institution and to advances when an institution is
under sustained liquidity pressures. As an alternative, for loans outstanding for
more than 150 days, a Federal Reserve Bank may charge a flexible rate that takes
into account rates on market sources of funds, but in no case will the rate charged
be less than the basic rate plus one percentage point. Where credit provided to a
particular depository institution is anticipated to be outstanding for an unusually
prolonged period and in relatively large amounts, the time period in which each
73/4
iVi
8
81/2
8'/i
8>/>
9Vl
91/2
10
10
10'/2
101/-
10-101/2
10V2-11
11
11-12
12
12-13
13
12-13
12
11-12
11
10-11
10
11
12
8/21/86
8/21/86
8/22/86
8/21/86
8/21/86
8/21/86
8/21/86
8/22/86
8/21/86
8/21/86
8/21/86
8/21/86
71/2
7
F.R.
Bank
of
N.Y.
8>/2-9!/2
9'/2
Previous
rate
3
Range (or
level)—
All F.R.
Banks
8
8-81/2
Effective date
for current rates
10Vt!
11
11
12
12
13
13
13
Effective date
1982— July
20
23
2
3
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17
Aug.
12
11
9
13
Nov. 21
26
Dec. 24
10
10
1985— May 20
24
It
1984— Apr.
11
12-13
13
12
13
13
13-14
14
13-14
13
12
14
14
13
13
12
1986— Mar.
7
10
Apr. 21
23
July 11
Aug. 21
22
In effect March 25, 1987
Range (or
level)—
All F.R.
Banks
111/2-12
111/2
11-111/2
11
10'/2
10-10'/2
10
91/2—10
9'/2
9-9'/2
9
8V2—9
8'/>-9
8'/2
81/2-9
9
81/2-9
81/2
8
71/2-8
7'/2
7-7!/2
7
61/2-7
61/2
6
5 '/2—6
51/2
51/2
F.R.
Bank
of
N.Y.
111/2
111/2
11
11
101/!
10
10
9^2
9'/>
9
9
9
81/2
81/2
9
9
81/2
81/2
8
7x1/2
lh
7
7
61/2
61/2
6
51/2
51/2
51/2
rate under this structure is applied may be shortened. See section 201.3(b)(2) of
Regulation A.
3. Rates for short-term adjustment credit. For description and earlier data see
the following publications of the Board of Governors: Banking and Monetary
Statistics, 1914-1941, and 1941-1970; Annual Statistical Digest, 1970-1979, 1980,
1981, and 1982.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than 4 weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,
1980. There was no surcharge until Nov. 17,1980, when a 2 percent surcharge was
adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and
to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective
Sept. 22, 1981, and to 2 percent effective Oct. 12. As of Oct. 1, the formula for
applying the surcharge was changed from a calendar quarter to a moving 13-week
period. The surcharge was eliminated on Nov. 17, 1981.
Policy Instruments
1.15
A7
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1
Percent of deposits
Type of deposit, and
deposit interval 2
Depository institution requirements
after implementation of the
Monetary Control Act
Effective date
Net transaction
accounts3'4
$0 million-$36.7 million . . .
More than $36.7 million . . .
12/30/86
12/30/86
Nonpersonal time deposits5
By original maturity
Less than 1 xh years
1 '/2 years or more
10/6/83
10/6/83
Eurocurrency
All types
11/13/80
liabilities
1. Reserve requirements in effect on Dec. 31, 1986. Required reserves must be
held in the form of deposits with Federal Reserve Banks or vault cash. Nonmembers may maintain reserve balances with a Federal Reserve Bank indirectly on a
pass-through basis with certain approved institutions. For previous reserve
requirements, see earlier editions of the Annual Report and of the FEDERAL
RESERVE BULLETIN. Under provisions of the Monetary Control Act, depository
institutions include commercial banks, mutual savings banks, savings and loan
associations, credit unions, agencies and branches of foreign banks, and Edge
corporations.
2. The Garn-St. Germain Depository Institutions Act of 1982 (Public Law 97320) requires that $2 million of reservable liabilities (transaction accounts,
nonpersonal time deposits, and Eurocurrency liabilities) of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabiliiies subject to this zero percent reserve requirement each year for the succeeding calendar year by 80 percent of the percentage
increase in the total reservable liabilities of all depository institutions, measured
on an annual basis as of June 30. N o corresponding adjustment is to be made in the
event of a decrease. On Dec. 30, 1986, the exemption was raised from $2.6 million
to $2.9 million. In determining the reserve requirements of depository institutions,
the exemption shall apply in the following order: (1) net NOW accounts (NOW
accounts less allowable deductions); (2) net other transaction accounts; and (3)
nonpersonal time deposits or Eurocurrency liabilities starting with those with the
highest reserve ratio. With respect to NOW accounts and other transaction
accounts, the exemption applies only to such accounts that would be subject to a 3
percent reserve requirement.
3. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers in excess of
three per month for the purpose of making payments to third persons or others.
However, MMDAs and similar accounts subject to the rules that permit no more
than six preauthorized, automatic, or other transfers per month, of which no more
than three can be checks, are not transaction accounts (such accounts are savings
deposits subject to time deposit reserve requirements).
4. The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage increase in transaction accounts held by
all depository institutions, determined as of June 30 each year. Effective Dec. 30,
1986, the amount was increased from $31.7 million to $36.7 million.
5. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which a beneficial interest is
held by a depositor that is not a natural person. Also included are certain
transferable time deposits held by natural persons and certain obligations issued
to depository institution offices located outside the United States. For details, see
section 204.2 of Regulation D.
A8
DomesticNonfinancialStatistics • May 1987
1.16
DATES OF REMOVAL OF INTEREST RATE CEILINGS on Deposits at Federally Insured Institutions'
Type of deposit
1 Savings
2 Negotiable order of withdrawal
3 Money market deposit account
Time accounts
4 7-31 days
5 More than 31 days
1. All restrictions on the maximum rates of interest payable on various
categories of deposits were removed over a period beginning on Dec. 14, 1982,
and ending on Apr. 1, 1986. For information on the maximum rates payable on
specific types of accounts at various times, see the Federal Home Loan Bank
Effective date
4/1/86
1/1/86
1/1/86
1/1/86
10/1/83
Board Journal, the Annual Report of the Federal Deposit Insurance
Corporation,
and previous issues of the FEDERAL RESERVE BULLETIN. This table will not
appear in future issues of the BULLETIN.
Policy Instruments
1.17
FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1986
Type of transaction
1984
1985
1986
July
Sept.
Aug.
Nov.
Oct.
Dec.
U . S . G O V E R N M E N T SECURITIES
Outright transactions (excluding matched
transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
20,036
8,557
0
7,700
22,214
4,118
0
3,500
22,602
2,502
0
1,000
867
0
0
0
2,940
0
0
0
861
0
0
0
928
0
0
0
3,318
0
0
0
5,422
0
0
0
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
1,126
0
16,354
-20,840
0
1,349
0
19,763
-17,717
0
190
0
18,673
-20,179
0
0
0
579
-1,253
0
0
0
1,715
-4,087
0
0
0
1,053
-1,892
0
0
0
974
-529
0
190
0
2,974
-1,810
0
0
0
1,280
-1,502
0
10
11
12
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
1,638
0
-13,709
16,039
2,185
0
-17,459
13,853
893
0
-17,058
16,984
0
0
-386
1,253
0
0
-1,194
2,587
0
0
-1,053
1,892
0
0
-969
529
893
0
-2,414
1,510
0
0
-1,280
1,502
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
536
300
-2,371
2,750
458
100
-1,857
2,184
236
0
-1,620
2,050
0
0
-193
0
0
0
-520
1,000
0
0
0
0
0
0
-5
0
236
0
-560
200
0
0
0
0
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
441
0
-275
2,052
293
0
-447
1,679
158
0
0
1,150
0
0
0
0
0
0
0
500
0
0
0
0
0
0
0
0
158
0
0
100
0
0
0
0
All maturities
22
Gross purchases
23
Gross sales
24
Redemptions
23,776
8,857
7,700
26,499
4,218
3,500
24,078
2,502
1,000
867
0
0
2,940
0
0
861
0
0
928
0
0
4,795
0
0
5,422
0
0
'
25
26
Matched transactions
Gross sales
Gross purchases
808,986
810,432
866,175
865,968
927,997
927,247
70,928
69,659
60,460
60,011
73,179
70,817
77,262
81,892
60,146
60,232
91,404
88,730
27
28
Repurchase agreements
Gross purchases
Gross sales
127,933
127,690
134,253
132,351
170,431
160,268
18,657
18,657
0
0
14,717
8,403
5,670
11,984
16,888
15,471
44,303
32,028
8,908
20,477
29,989
-403
2,491
4,814
-756
6,298
15,023
0
0
256
0
0
162
0
0
398
0
0
0
0
0
90
0
0
0
0
0
93
0
0
125
0
0
0
11,509
11,328
22,183
20,877
31,142
30,522
4,984
4,984
0
0
2,678
869
952
2,761
1,622
1,274
5,488
3,522
-76
1,144
222
0
-90
1,809
-1,902
223
1,965
36 Repurchase agreements, net
-418
0
0
0
0
0
0
0
0
37 Total net change in System Open Market
Account
8,414
21,621
30,211
-403
2,401
6,623
-2,658
6,522
16,988
29 Net change in U.S. government securities
FEDERAL A G E N C Y OBLIGATIONS
Outright transactions
30
Gross purchases
31
Gross sales
32
Redemptions
33
34
Repurchase agreements
Gross purchases
Gross sales
35 Net change in federal agency obligations .
BANKERS ACCEPTANCES
NOTE. Sales, redemptions, and negative figures reduce holdings of the System
Open Market Account; all other figures increase such holdings. Details may not
add to totals because of rounding.
A9
A10
1.18
DomesticNonfinancialStatistics • May 1987
FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements
Millions of dollars
End of month
Wednesday
1987
Account
Jan. 28
Feb. 11
Feb. 4
1987
1986
Feb. 18
Dec.
Feb. 25
Jan.
Feb.
Consolidated condition statement
ASSETS
11,075
5,018
545
11,060
5,018
562
11,060
5,018
579
11,059
5,018
581
11,059
5,018
579
11,084
5,018
485
11,075
5,018
553
11,059
5,018
578
3,923
0
361
0
452
0
446
0
1,239
0
1,565
0
513
0
514
0
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4
To depository institutions
5
Other
Acceptances—Bought outright
6
Held under repurchase agreements
Federal agency obligations
7
Bought outright
8
Held under repurchase agreements
U.S. government securities
Bought outright
9
Bills
10
Notes
11
Bonds
12
Total bought outright 1
13
Held under repurchase agreements
14 Total U.S. government securities
0
0
0
0
0
0
0
0
7,719
723
7,719
0
7,719
0
7,719
0
7,719
0
7,829
2,314
7,719
857
7,719
0
107,715
68,126
25,724
201,565
2,847
204,412
103,971
68,123
25,724
197,818
0
197,818
100,525
67,873
25,724
194,122
0
194,122
101,698
67,673
25,924
195,295
0
195,295
96,446
67,673
25,924
190,043
0
190,043
103,775
68,126
25,724
197,625
13,691
211,316
105,468
68,126
25,724
199,318
3,168
202,486
100,581
67,673
25,924
194,178
0
194,178
15 Total loans and securities
216,777
205,898
202,293
203,460
199,001
223,024
211,575
202,411
6,674
660
7,462
664
5,633
665
11,355
666
6,682
666
8,938
661
5,947
665
6,338
669
9,465
7,072
10,279
6,856
10,284
7,091
10,230
5,962
10,237
5,947
9,475
7,345'
10,276
7,099
9,960
6,117
257,286
247,799
242,623
248,331
239,189
266,030'
252,208
242,150
189,024
189,548
190,228
190,697
189,605
195,360
188,763
189,370
37,544
17,744
236
517
38,663
5,310
338
423
36,855
3,541
177
402
36,248
5,370
222
479
32,660
4,151
172
640
48,107
7,588
287
923 r
34,588
15,746
226
453
37,133
3,482
201
539
56,041
44,734
40,975
42,319
37,623
56,905 r
51,013
41,355
5,918
2,252
6,484
2,161
5,296
2,064
9,230
2,016
5,747
2,126
7,677
2,342'
5,231
2,268
5,315
2,189
253,235
242,927
238,563
244,262
235,101
262,284'
247,275
238,229
1,877
1,874
300
1,881
1,873
1,118
1,885
1,873
302
1,894
1,873
302
1,910
1,873
305
l,873 r
1,873'
0
1,877
1,873
1,183
1,910
1,860
151
33 Total liabilities and capital accounts
257,286
247,799
242,623
248,331
239,189
266,030'
252,208
242,150
34 MEMO: Marketable U . S . government securities held in
custody for foreign and international account
163,606
165,808
166,675
168,714
168,348
162,381
163,927
166,449
16 Items in process of collection
17 Bank premises
Other assets
18
Denominated in foreign currencies 2
19
All other 3
20 Total assets
LIABILITIES
21 Federal Reserve notes
Deposits
22
To depository institutions
23
U.S. Treasury—General account
24
Foreign—Official accounts
25
Other
26 Total deposits
27 Deferred credit items
28 Other liabilities and accrued dividends 4
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
Federal Reserve note statement
35 Federal Reserve notes outstanding
36
LESS: Held by bank
37
Federal Reserve notes, net
Collateral held against notes net:
38
Gold certificate account
39
Special drawing rights certificate account
40
Other eligible assets
41
U . S . government and agency securities
231,326
42,302
189,024
232,188
42,640
189,548
232,938
42,710
190,228
233,573
42,876
190,697
233,765
44,160
189,605
231,603
36,243
195,360
231,694
42,931
188,763
234,114
44,744
189,370
11,075
5,018
0
172,931
11,060
5,018
0
173,470
11,060
5,018
0
174,150
11,059
5,018
0
174,620
11,059
5,018
0
173,528
11,084
5,018
0
179,258
11,075
5,018
0
172,670
11,059
5,018
0
173,293
42 Total collateral
189,024
189,548
190,228
190,697
189,605
195,360
188,763
189,370
1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Assets shown in this line are revalued monthly at market exchange rates.
3. Includes special investment account at Chicago of Treasury bills maturing
within 90 days.
4. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
NOTE: Some of these data also appear in the Board's H.4.1 (503) release. For
address, see inside front cover.
Federal Reserve Banks
1.19
FEDERAL RESERVE BANKS
All
Maturity Distribution of Loan and Security Holdings
Millions of dollars
Wednesday
End of month
1987
Type and maturity groupings
1987
1986
Jan. 28
Feb. 4
Feb. 11
Feb. 18
Feb. 25
Dec. 31
Jan. 30
Feb. 27
1 Loans—Total
Within 15 days
2
3
16 days to 90 days
4
91 days to 1 year
1,565
1,553
12
0
361
319
42
0
452
414
38
0
446
434
12
0
1,239
1,231
8
0
1,565
1,553
12
0
513
508
5
0
514
502
12
0
5 Acceptances—Total
Within 15 days
6
7
16 days to 90 days
8
91 days to 1 year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
211,316
20,480
53,611
62,239
36,469
15,451
23,066
197,818
14,174
46,066
62,440
36,641
15,431
23,066
194,122
14,023
44,771
60,440
36,391
15,431
23,066
195,295
12,795
47,398
57,167
39,042
15,627
23,266
190,043
8,656
43,970
59,482
39,042
15,627
23,266
211,316
20,480
53,611
62,239
36,469
15,451
23,066
202,486
8,522
57,100
61,883
36,484
15,431
23,066
194,178
4,662
52,118
59,463
39,042
15,627
23,266
10,143
2,704
809
1,224
3,854
1,178
374
7,719
60
931
1,353
3,712
1,342
321
7,719
61
870
1,378
3,727
1,362
321
7,719
284
647
1,378
3,727
1,362
321
7,719
301
640
1.307
3,819
1,372
280
10,143
2,704
809
1,224
3,854
1,178
374
8,576
1,041
801
1,338
3,733
1,305
358
7,719
301
640
1,307
3,819
1,372
280
9 U.S. government securities—Total
10
Within 15 days'
16 days to 90 days
11
1?
91 days to 1 year
n
Over 1 year to 5 years
14
Over 5 years to 10 years
15
Over 10 years
16 Federal agency obligations—Total
Within 15 days 1
17
18
16 days to 90 days
19
91 days to 1 year
Over 1 year to 5 years
70
Over 5 years to 10 years
71
22
Over 10 years
I. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements.
A12
1.20
DomesticNonfinancialStatistics • May 1987
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE
Billions of dollars, averages of daily figures
Item
1983
Dec.
1984
Dec.
1987
1986
1985
Dec.
1986
Dec.
July'
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Seasonally adjusted
A D J U S T E D FOR
CHANGES IN RESERVE REQUIREMENTS 1
1 Total reserves 2
2
3
4
5
Nonborrowed reserves
Nonborrowed reserves plus extended credit 3
Required reserves
Monetary base 4
36.16
39.48
45.52
55.64
50.49
51.32
51.81
52.40
53.82
35.38
35.38
35.59
185.38
36.29
38.90
38.66
199.15
44.20
44.70
44.55
216.70
54.81
55.11
54.27
238.84
49.75
50.13
49.58
228.36
50.45
50.91
50.58
230.60
50.80
51.37
51.08
231.69
51.56
52.06
51.66
233.46
53.07
53.49
52.85
236.07
55.64
56.64
54.81
56.06
55.11
56.29
54.27 55.57'
238.84 242.02'
56.49
55.93
56.21
55.28
243.45
Not seasonally adjusted
6 Total reserves 2
7
8
9
10
Nonborrowed reserves
Nonborrowed reserves plus extended credit 3
Required reserves
Monetary base 4
36.87
40.53
46.75
57.17
50.32
50.62
51.55
52.34
54.11
36.09
36.10
36.31
188.65
37.35
39.95
39.71
202.29
45.43
45.93
45.78
220.26
56.34
56.64
55.80
243.04
49.58
49.96
49.41
230.02
49.75
50.22
49.88
230.75
50.54
51.11
50.82
231.51
51.50
52.00
51.60
233.04
53.36
53.77
53.13
236.91
38.89
40.67
48.05
59.56
51.03
51.28
53.19
54.62
56.40
38.12
38.12
38.33
192.26
37.48
40.06
39.84
204.13
46.73
47.32
47.08
223.45
58.73
59.04
58.19
247.71
50.29
50.68
50.12
232.55
50.41
50.90
50.54
233.32
52.18
52.76
52.46
235.07
. 53.78
54.15
53.88
237.26
55.65
56.15
55.42
241.27
57.17
58.25
56.34 57.67
56.64 57.89 r
55.80 57.18'
243.04 242.81'
55.59
55.04
55.32
54.38
240.26
N O T A D J U S T E D FOR
CHANGES IN RESERVE REQUIREMENTS 5
11 Total reserves 2
12
13
14
15
Nonborrowed reserves
Nonborrowed reserves plus extended credit 3
Required reserves
Monetary base 4
1. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
2. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash used to satisfy reserve
requirements. Such vault cash consists of all vault cash held during the lagged
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
3. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
4. The monetary base not adjusted for discontinuities consists of total reserves
plus required clearing balances and adjustments to compensate for float at Federal
Reserve Banks and the currency component of the money stock less the amount
59.56
59.67
58.73 59.09
59.04 59.32
58.19 58.60
247.71 246.75'
57.06
56.50
56.74
55.85
244.22
of vault cash holdings of thrift institutions that is included in the currency
component of the money stock plus, for institutions not having required reserve
balances, the excess of current vault cash over the amount applied to satisfy
current reserve requirements. After the introduction of contemporaneous reserve
requirements (CRR), currency and vault cash figures are measured over the
weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock and the remaining items seasonally
adjusted as a whole.
5. Reflects actual reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated
with implementation of the Monetary Control Act or other regulatory changes to
reserve requirements.
NOTE. Latest monthly and biweekly figures are available from the Board's
H.3(502) statistical release. Historical data and estimates of the impact on
required reserves of changes in reserve requirements are available from the
Banking Section, Division of Research and Statistics, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
Monetary and Credit Aggregates
1.21
A13
MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Billions of dollars, averages of daily figures
1986
1983
Dec.
1984
Dec.
1985
Dec.
1986
Dec.
Nov.
1987
Dec.
Jan.
Feb.
737.6'
2,822.0'
3,515.8'
4,173.1
7,711.1
737.2
2,821.3
3,519.5
n.a.
n.a.
186.0
6.5
305.1
240.0'
187.2
6.7
300.7
242.7
2,084.4'
693.8'
2,084.1
698.1
Seasonally adjusted
1 Ml
2 M2
M3
4 L
5 Debt
526.9
2,184.6
2,692.8
3,154.6
5,206.3'
557.5
2,369.1
2,985.7
3,529.3'"
5,946.0'
627.0
2,569.6
3,205.6
3,838.6'
6,774.9'
730.5
2,799.8'
3,489.2'
4,141.1'
7,626.6'
712.4
2,775.4'
3,459.5'
4,108.2'
7,530.0'
730.5
2,799.8'
3,489.2'
4,141.1'
7,626.6'
148.3
4.9
242.3
131.4
158.5
5.2
248.3
145.5
170.6
5.9
272.2
178.3
183.5
6.4
308.3
232.3
182.4
6.4
297.8
225.9
183.5
6.4
308.3
232.3
1,657.7
508.2
1,811.6
616.6
1,942.6
636.1
2,069.3'
689.3'
2,063.0'
684.1'
2,069.3'
689.3'
6
7
8
9
Ml components
Currency 2
Travelers checks 3
Demand deposits 4
Other checkable deposits 5
10
11
Nontransactions components
In M2 6
In M3 only 7
12
13
Savings deposits 9
Commercial Banks
Thrift institutions
133.2
173.0
122.2
166.6
124.6
179.0
154.5
211.7
150.2
208.3
154.5
211.7
159.8'
216.9
164.4
222.9
14
15
Small denomination time deposits 9
Commercial Banks
Thrift institutions
350.9
432.9
386.6
498.6
383.9
500.3
364.7
488.5
365.9
491.3
364.7
488.5
364.7
486.6'
362.5
484.7
16
17
Money market mutual funds
General purpose and broker/dealer
Institution-only
138.2
43.2
167.5
62.7
176.5
65.1
207.6'
84.1
207.1
84.4
207.6'
84.1
209^
84.0
210.8
84.7
18
19
Large denomination time deposits 1 0
Commercial Banks 11
Thrift institutions
230.0
96.2
269.6
147.3
284.1
152.1
291.9
155.1
290.0
155.8
291.9
155.1
295.8'
153.8'
295.8
152.0
20
21
Debt components
Federal debt
Non-federal debt
1,367.6
4,578.4'
1,587.0
5,187.9'
1,805.7'
5,821.0'
1,777.7'
5,752.4'
1,805.7'
5,821.0'
1,817.8
5,893.4
1,172.8
4,033.5'
n.a.
n.a.
Not seasonally adjusted
538.3
2,191.6
2,702.4
3,163.1
5,200.7'
570.3
2,378.3
2,997.6
3,540.0'
5,940.2'
641.0
2,580.6
3,218.9
3,850.4'
6,768.3'
746.6
2,813.3'
3,504.4'
4,154.5'
7,619.5'
715.5
2,777.7'
3,463.8'
4,111.0'
7,514.4'
746.6
2,813.3'
3,504.4'
4,154.5'
7,619.5'
744.3'
2,832.2'
3,526.5'
4,184.4
7,705.3
150.6
4.6
251.0
132.2
160.8
4.9
257.2
147.4
173.1
5.5
282.0
180.4
186.2
6.0
319.5
235.0
183.2
6.1
300.1
226.0
186.2
6.0
319.5
235.0
184.6
6.0
311.0
242.8
1,653.3
510.8
1,808.1
619.2
1,939.6
638.3
2,066.7'
691.1'
2,062.2'
686.2'
2,066.7'
691.1'
2,087.9'
Money market deposit accounts
Commercial banks
Thrift institutions
230.4
148.5
267.4
150.0
332.5
180.7
379.0
192.3
375.9
192.7
35
36
Savings deposits 8
Commercial Banks
Thrift institutions
132.2
172.4
121.4
166.2
123.9
178.8
153.9'
211.7
37
38
Small denomination time deposits 9
Commercial Banks
Thrift institutions
351.1
433.5
386.7
499.6
383.8
501.5
39
40
Money market mutual funds
General purpose and broker/dealer
Institution-only
138.2
43.2
167.5
62.7
41
42
Large denomination time deposits 1 0
Commercial Banks 1 1
Thrift institutions
231.6
96.3
43
44
Debt components
Federal debt
Non-federal debt
7?
73
74
75
26
Ml
M2
M3
L
Debt
77
78
29
30
Ml components
Currency 2
Travelers checks 3
Demand deposits 4
Other checkable deposits 5
31
32
Nontransactions components
M2 6
M3 only 7
33
34
For notes see following page.
1,170.2
4,030.5 r
723.1
2,809.4
3,509.8
n.a.
n.a.
184.8
6.2
291.9
240.1
694.4'
2,086.3
700.4
379.0
192.3
381.7'
192.4
378.5
192.2
150.3
209.0
153.9'
211.7
159.2'
217.2
162.8
222.0
364.4
489.6
366.6
492.9
364.4
489.6
364.4
489.7'
362.1
487.2
176.5
65.1
207.6'
84.1
207.1
84.4
207.6'
84.1
209.0'
84.0
210.8
84.7
271.2
147.3
285.6
151.9
293.4'
154.7
290.8
156.0
293.4'
154.7
297.0'
154.1
297.9
152.8
1,364.7
4,575.5'
1,583.7
5,184.6'
1,802.1'
5,817.4'
1,770.1'
5,744.3'
1,802.1'
5,817.4'
1,816.9
5,888.4
n.a.
n.a.
A14
DomesticNonfinancialStatistics • May 1987
NOTES TO TABLE 1.21
1. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits
at all commercial banks other than those due to domestic banks, the U.S.
government, and foreign banks and official institutions less cash items in the
process of collection and Federal Reserve float; and (4) other checkable deposits
(OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer
service (ATS) accounts at depository institutions, credit union share draft
accounts, and demand deposits at thrift institutions. The currency and demand
deposit components exclude the estimated amount of vault cash and demand
deposits respectively held by thrift institutions to service their OCD liabilities.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, MMDAs, savings and smalldenomination time deposits (time deposits—including retail RPs—in amounts of
less than $100,000), and balances in both taxable and tax-exempt general purpose
and broker/dealer money market mutual funds. Excludes individual retirement
accounts (IRA) and Keogh balances at depository institutions and money market
funds. Also excludes all balances held by U.S. commercial banks, money market
funds (general purpose and broker/dealer), foreign governments and commercial
banks, and the U.S. government. Also subtracted is a consolidation adjustment
that represents the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposits.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted is
a consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are based on monthly averages.
2. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of
commercial banks. Excludes the estimated amount of vault cash held by thrift
institutions to service their OCD liabilities.
3. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. Travelers checks issued by depository institutions are included in
demand deposits.
4. Demand deposits at commercial banks and foreign-related institutions other
than those due to domestic banks, the U.S. government, and foreign banks and
official institutions less cash items in the process of collection and Federal
Reserve float. Excludes the estimated amount of demand deposits held at
commercial banks by thrift institutions to service their OCD liabilities.
5. Consists of NOW and ATS balances at all depository institutions, credit
union share draft balances, and demand deposits at thrift institutions. Other
checkable deposits seasonally adjusted equals the difference between the seasonally adjusted sum of demand deposits plus OCD and seasonally adjusted demand
deposits. Included are all ceiling free "Super N O W s , " authorized by the
Depository Institutions Deregulation committee to be offered beginning Jan. 5,
1983.
6. Sum of overnight RPs and overnight Eurodollars, money market fund
balances (general purpose and broker/dealer), MMDAs, and savings and small
time deposits, less the consolidation adjustment that represents the estimated
amount of demand deposits and vault cash held by thrift institutions to service
their time and savings deposits liabilities.
7. Sum of large time deposits, term RPs and term Eurodollars of U.S.
residents, money market fund balances (institution-only), less a consolidation
adjustment that represents the estimated amount of overnight RPs and Eurodollars held by institution-only money market funds.
8. Savings deposits exclude MMDAs.
9. Small-denomination time deposits—including retail RPs— are those issued
in amounts of less than $100,000. All individual retirement accounts (IRA) and
Keogh accounts at commercial banks and thrifts are subtracted from small time
deposits.
10. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
11. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
NOTE: Latest monthly and weekly figures are available from the Board's H.6
(508) release. Historical data are available from the Banking Section, Division of
Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Monetary and Credit Aggregates
1.22
A15
BANK DEBITS AND DEPOSIT TURNOVER
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
1987
1986
Bank group, or type of customer
Aug.
1
2
3
4
5
6
7
8
9
10
Demand deposits 2
All insured banks
Major N e w York City banks
Other banks
A T S - N O W accounts 3
Savings deposits 4
Oct.
Nov.
Dec.
Jan.
Seasonally adjusted
DEBITS TO
Demand deposits 2
All insured banks
Major N e w York City banks
Other banks
A T S - N O W accounts 3
Savings deposits 4
Sept.
128,440.8
57,392.7
71,048.1
1,588.7
633.1
154,556.0
70,445.1
84,110.9
1,920.8
539.0
189,534.1
91,212.9
98,321.4
2,351.1
410.3
194,457.3
92,961.7
101,495.6
2,414.8
421.0
197,997.9
95,252.0
102,745.9
2,704.8
421.0
197,222.5
95,919.7
101,302.9
2,292.5
456.5
187,594.4
96,829.5
90,764.9
2,501.0
424.9
206,689.6
95,831.3
110,858.4
2,960.8
533.7
210,574.2
99,357.1
111,217.1
2,255.7
459.2
434.4
1,843.0
268.6
15.8
5.0
496.5
2,168.9
301.8
16.7
4.5
561.8
2,460.6
327.4
16.8
3.1
567.6
2,437.0
333.4
16.9
3.2
573.9
2,519.8
334.5
18.4
3.1
569.6
2,493.4
329.2
15.2
3.2
538.2
2,513.2
292.8
16.1
2.9
560.7
2,251.6
340.0
18.3
3.5
580.3
2,426.4
345.5
13.4
2.9
DEPOSIT TURNOVER
Not seasonally adjusted
DEBITS TO
14
15
16
Demand deposits 2
All insured banks
Major N e w York City banks
Other banks
ATS-NOW accounts 3
MMDA 5
Savings deposits 4
17
18
19
70
71
22
Demand deposits 2
All insured banks
Major N e w York City banks
Other banks
A T S - N O W accounts 3
MMDA 5
Savings deposits 4
11
12
N
128,059.1
57,282.4
70,776.9
1,579.5
848.8
632.9
154,108.4
70,400.9
83,707.8
1,903.4
1,179.0
538.7
189,443.3
91,294.4
98,149.0
2,338.4
1,599.3
404.3
186,892.9
88,807.6
98,085.3
2,140.8
1,530.6
413.7
198,433.5
96,489.1
101,944.4
2,524.1
1,612.9
414.2
204,618.4
98,837.9
105,780.4
2,231.9
1,607.4
449.2
167,465.5
85,849.7
81,615.8
2,255.1
1,434.0
382.7
226,263.1
106,935.2
119,327.9
2,841.5
2,058.2
503.6
216,638.7
102,274.2
114,364.5
2,679.2
1,913.3
499.0
433.5
1,838.6
267.9
15.7
3.5
5.0
497.4
2,191.1
301.6
16.6
3.8
4.5
564.0
2,494.3
327.9
16.8
4.5
3.1
554.7
2,421.9
326.6
15.1
4.2
3.1
577.6
2,603.6
332.6
17.3
4.4
3.0
593.5
2,656.9
343.9
14.9
4.4
3.2
476.4
2,225.4
260.8
14.6
3.8
2.6
600.3
2,483.2
357.4
17.4
5.5
3.3
579.9
2,345.5
346.6
15.7
5.1
3.1
DEPOSIT TURNOVER
1. Annual averages of monthly figures.
2. Represents accounts of individuals, partnerships, and corporations and of
states and political subdivisions.
3. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts authorized for automatic transfer to demand deposits (ATS). ATS data
availability starts with December 1978.
4. Excludes ATS and NOW accounts, MMDA and special club accounts, such
as Christmas and vacation clubs.
5. Money market deposit accounts.
NOTE. Historical data for demand deposits are available back to 1970 estimated
in part from the debits series for 233 SMSAs that were available through June
1977. Historical data for A T S - N O W and savings deposits are available back to
July 1977. Back data are available on request from the Banking Section, Division
of Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
These data also appear on the Board's G.6 (406) release. For address, see inside
front cover.
A16
1.23
DomesticNonfinancialStatistics • May 1987
LOANS AND SECURITIES
All Commercial Banks'
Billions of dollars; averages of Wednesday figures
1986
1987
Category
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Seasonally adjusted
1 Total loans and securities 2
2 U.S. government securities
3 Other securities
4 Total loans and leases 2
5
Commercial and industrial
6
Bankers acceptances held 3 ..
7
Other commercial and
industrial
8
U.S. addressees 4
9
Non-U.S. a d d r e s s e e s 4 . . . .
10
Real estate
11
Individual
12
Security
13
Nonbank financial
institutions
14
Agricultural
15
State and political
subdivisions
16
Foreign banks
17
Foreign official institutions . . .
18
Lease financing r e c e i v a b l e s . . .
19
All other loans
1,944.6
1,947.9
1,957.5
1,963.7
1,985.0
2,007.7
2,029.6
2,034.0
2,049.0
2,078.7
2,110.6
2,114.5
269.5
183.3
1,491.8
506.1
4.9
270.0
182.1
1,495.8
507.8
5.2
274.1
181.9
1,501.5
506.7
5.6
274.8
183.6
1,505.3
508.7
6.1
285.4
186.1
1,513.4
508.7
5.8
290.9
192.3
1,524.5
510.4
5.9
294.3
200.7
1,534.7
512.1
6.3
299.6
196.7
1,537.7
514.1
6.4
304.8
194.8
1,549.5
520.3
6.1
309.1
193.4
1,576.2
536.9
5.9
313.9
188.7
1,608.0
551.2
6.3
316.2
189.4
1,608.9
550.4
6.2
501.2
491.3
9.9
436.1
299.5
50.4
502.6
492.7
9.8
440.7
301.1
48.0
501.0
490.6
10.5
446.4
303.0
46.4
502.6
493.1
9.5
450.7
304.5
42.5
502.8
493.8
9.0
455.9
305.6
44.8
504.4
495.4
9.1
461.4
306.9
44.2
505.8
496.9
8.9
465.9
308.8
44.5'
507.8
499.0
8.8
470.8
309.8
39.5
514.1
505.4
8.7
476.6
311.1
40.1
531.0
522.5
8.5
486.4
313.0
37.3
32.2
34.9
32.3
34.6
33.3
34.1
34.7
33.7
34.2
33.3
34.4
33.3
35.1
33.2
35.7
33.1
35.3
33.2
35.6
33.2
35.8
33.2
34.6
33.1
60.2
9.2
6.8
19.8
36.6
59.8
9.2
5.3
19.9
37.3
59.5
9.3
5.1
19.8
37.9
59.4
9.5
6.4
20.0
35.4
59.0
9.5
6.5
20.0
35.8
59.4
9.3
6.5
20.2
38.5
59.4
9.4
6.4
20.4
39.6'
58.5
9.1
6.4
20.4
40.3
57.8
9.0
6.2
21.0
38.9
56.9'
9.6
6.2
21.7
39.3
57.1
9.8
6.3
21.7
43.8'
56.5
9.6
6.7
21.8
40.7
544.9
535.9
9.0
496.2'
314.3'
38.5'
544.2
535.1
9.1
501.5
314.4
39.6
Not seasonally adjusted
20 Total loans and securities 2
1,944.1
1,950.5
1,956.7
1,965.4
1,981.4
1,999.8
2,027.3
2,029.2
2,048.6
2,092.6
2,116.2
2,111.2
21 U.S. government securities
22 Other securities
23 Total loans and leases 2
24
Commercial and i n d u s t r i a l . . . .
25
Bankers acceptances held 3 ..
26
Other commercial and
industrial
27
U.S. addressees 4
28
Non-U.S. a d d r e s s e e s 4 . . . .
29
Real estate
30
Individual
31
Security
32
Nonbank financial
institutions
33
Agricultural
34
State and political
subdivisions
35
Foreign banks
36
Foreign official institutions . . .
37
Lease financing r e c e i v a b l e s . . .
38
All other loans
273.2
183.9
1,487.1
506.9
5.0
274.0
181.8
1,494.7
510.0
5.2
275.4
182.2
1,499.0
508.5
5.5
276.2
182.5
1,506.7
509.4
6.0
285.3
183.9
1,512.1
508.6
6.0
289.1
192.1
1,518.7
508.3
5.9
292.6
200.7
1,534.0
511.2
6.1
295.2
196.3
1,537.7
513.1
6.2
302.5
194.8
1,551.3
519.3
6.2
306.8
194.6
1,591.2
539.4
6.3
313.4
189.9
1,612.9
550.8
6.2
317.9
190.1
1,603.2
547.9
6.1
501.9
492.7
9.2
434.9
296.8
49.5
504.9
495.4
9.5
439.5
298.6
48.5
503.0
493.3
9.7
445.2
301.1
45.6
503.4
494.0
9.4
450.2
303.1
42.5
502.6
493.3
9.3
455.8
304.9
43.0
502.4
493.1
9.4
461.7
307.2
41.3
505.2
495.9
9.3
466.9
310.2
41.9'
506.9
497.8
9.2
472.2
311.4
38.7
513.0
503.8
9.2
478.1
312.4
41.3
533.2
524.4
8.8
487.4
316.5
42.2
31.6
34.0
32.2
33.9
33.1
34.1
34.6
34.2
34.3
34.1
34.6
34.1
35.3
33.9
35.5
33.6
35.4
33.2
60.2
9.1
6.8
19.8
37.5
59.8
9.0
5.3
19.9
38.1
59.5
9.1
5.1
19.9
37.9
59.4
9.2
6.4
20.0
37.7
59.0
9.4
6.5
20.0
36.5
59.4
9.1
6.5
20.1
36.3
59.4
9.4
6.4
20.3
38.9'
58.5
9.3
6.4
20.3
38.9
57.8
9.3
6.2
20.9
37.4
1. Data are prorated averages of Wednesday estimates for domestically chartered insured banks, based on weekly sample reports and quarterly universe
reports. For foreign-related institutions, data are averages of month-end estimates
based on weekly reports from large U.S. agencies and branches and quarterly
reports from all U.S. agencies and branches, New York investment companies
majority owned by foreign banks, and Edge Act corporations owned by domestically chartered and foreign banks.
544.5
535.7'
8.9
496.4'
316.8'
40.9'
541.8
532.8
9.0
500.6
313.3
38.8
36.6
32.9
36.1
32.6
33.9
32.3
56.9'
10.1
6.2
21.7
41.3
57.1
10.0
6.3
21.9
44^
56.5
9.7
6.7
22.0
41.5
2. Excludes loans to commercial banks in the United States.
3. Includes nonfinancial commercial paper held.
4. United States includes the 50 states and the District of Columbia.
NOTE. These data also appear in the Board's G.7 (407) release. For address, see
inside front cover.
Commercial Banking Institutions
1.24
A17
MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS 1
Monthly averages, billions of dollars
1987
1986
Source
Mar.
Total nondeposit funds
Seasonally adjusted 2
Not seasonally adjusted
Federal funds, RPs, and other
borrowings from nonbanks 3
Seasonally adjusted
3
Not seasonally adjusted
4
5 Net balances due to foreign-related
institutions, not seasonally
adjusted
1
2
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
142.1
144.3
135.3
135.6
137.4
138.5
134.3
132.1
136.1'
132.9
137.9'
137.8'
142.6'
141.9'
140.5'
139.6'
144.2'
145.8'
144.9'
145.1'
154.2'
153.7'
158.2
160.8
160.8
163.0
160.8
161.1'
158.8
159.9
158.0
155.7
165.5
162.4'
167.4'
167.3'
166.9'
166.2'
167.8'
166.9'
166.0'
167.5'
164.0'
164.1'
169.2'
168.7'
170.1
172.8
-18.7
-25.5
-21.3
-23.7
-29.5
-29.5
-24.3
-27.3
-21.8
-19.0
-15.0'
-11.9
-26.5
71.7
45.2
-30.2
75.2
45.1
-29.3
72.9
43.6
-30.5
72.2
41.7
-33.8
73.9
40.1
-31.2
75.2
44.0
-29.2
74.0
44.8
-31.9
73.5
41.6
-28.7
70.8
42.1
-30.7
73.4
42.7
-25.6
70.8
45.2
-23.8
68.4
44.7
7.8
60.6
68.4
4.7
62.5
67.2
8.0
60.0
67.9
6.8
62.8
69.6
4.3
64.2
68.6
1.7
66.3
67.9
4.9
67.9
72.7
4.7
68.3
72.9
6.9
68.7
75.7
11.7
70.8
82.5
10.5
74.6
85.1
11.9
72.9
84.7
90.0
92.1
90.1
90.4
89.9
91.0
90.2
87.9
95.2'
92.0
95.9'
95.8'
95.9'
95.2'
97.(X
96.1'
96.9'
98.5'
96.9'
97.1'
99.4'
98.9'
96.3
98.9
16.2
15.7
17.0
17.8
19.1
21.8
17.7
16.1
15.4
16.8
14.5
11.1
16.5
18.2
17.1
15.3
23.2
15.3
21.2
19.2
21.3
27.5
23.2
28.6
346.5
348.5
346.3
343.6
341.9
340.5
341.8
339.2
341.1
338.3
344.3
344.0
344.2
345.5
342.7
343.8
343.3
344.1
345.7
347.1
350.2
351.4
351.2
353.3
MEMO
6 Domestically chartered banks' net
positions with own foreign
branches, not seasonally
adjusted 4
Gross due from balances
7
Gross due to balances
8
9 Foreign-related institutions' net
positions with directly related
institutions, not seasonally
adjusted 5
Gross due from balances
10
Gross
due to balances
11
Security RP borrowings
12
Seasonally adjusted®
Not seasonally adjusted
13
U.S. Treasury demand balances 7
14
Seasonally adjusted
Not seasonally adjusted
15
Time deposits, $100,000 or more 8
16
Seasonally adjusted
Not seasonally adjusted
17
1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus agencies and branches of foreign banks, N e w
York investment companies majority owned by foreign banks, and Edge Act
corporations owned by domestically chartered and foreign banks.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from
nonbanks and not seasonally adjusted net Eurodollars. Includes averages of
Wednesday data for domestically chartered banks and averages of current and
previous month-end data for foreign-related institutions.
3. Other borrowings are borrowings on any instrument, such as a promissory
note or due bill, given for the purpose of borrowing money for the banking
business. This includes borrowings from Federal Reserve Banks and from foreign
banks, term federal funds, overdrawn due from bank balances, loan RPs, and
participations in pooled loans.
4. Averages of daily figures for member and nonmember banks.
5. Averages of daily data.
6. Based on daily average data reported by 122 large banks.
7. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
8. Averages of Wednesday figures.
A18
1.25
DomesticNonfinancialStatistics • May 1987
ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Last-Wednesday-of-Month Series
Billions of dollars
1986
1987
Account
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
2,113.4
429.5
255.8
173.6
27.8
1,656.1
155.7
1,500.4
510.5
441.7
300.4
247.8
2,101.3
430.9
257.7
173.2
27.0
1,643.5
146.2
1,497.2
506.2
446.4
301.1
243.6
2,105.5
432.6
259.6
173.0
27.4
1,645.5
139.2
1,506.3
512.3
451.4
304.0
238.7
2,134.0
445.7
269.6
176.1
28.7
1,659.6
148.6
1,511.0
507.3
457.6
305.6
240.5
2,154.4
455.1
272.2
183.0
29.3
1,670.0
149.4
1,520.6
510.1
463.2
308.4
238.8
2,171.1
464.6
275.9
188.7
27.9
1,678.5
145.3
1,533.2
512.1
467.7
310.5
242.9
2,173.2
467.4
281.8
185.6
26.0
1,679.9
146.8
1,533.1
512.6
473.5
311.8
235.2
2,218.1
470.4
286.2
184.3
28.1
1,719.5
161.0
1,558.6
520.2
479.3
312.8
246.3
2,303.7
474.8
291.7
183.1
27.8
1,801.1
173.4
1,627.7
563.5
494.8
319.6
249.9
2,276.4
477.3
295.3
182.0
26.4
1,772.7
166.0
1,606.7
546.9
496.9
316.0
246.9
2,270.4
480.1
298.3
181.8
29.0
1,761.2
162.2
1,599.0
547.0
501.0
313.3
237.7
209.9
25.5
22.3
80.7
221.0
30.2
23.9
84.6
196.0
27.9
23.0
67.3
206.2
28.2
23.3
72.1
205.8
27.9
23.7
73.5
196.6
27.8
22.9
66.3
200.4
31.2
23.5
66.2
223.9
31.7
22.2
86.5
270.7
40.8
25.7
111.2
211.2
32.9
23.6
74.4
203.2
28.0
23.5
71.4
34.7
46.7
36.8
45.5
32.0
45.8
33.8
48.7
33.6
47.1
32.3
47.4
32.6
46.9
37.7
45.8
42.7
50.4
33.4
46.7
32.4
48.0
Feb.
A L L COMMERCIAL B A N K I N G
INSTITUTIONS 1
1
2
3
4
5
6
7
8
9
10
11
12
Loans and securities
Investment securities
U.S. government securities
Other
Trading account assets
Total loans
Interbank loans
Loans excluding interbank
Commercial and industrial
Real estate
Individual
All other
Total cash assets
Reserves with Federal Reserve Banks
Cash in vault
Cash items in process of collection . . .
Demand balances at U.S. depository
institutions
Other cash assets
18
13
14
15
16
17
19
Other assets . . . «
207.0
195.9
196.6
196.6
196.2
200.8
198.2
201.9
225.3
199.9
200.7
20
Total assets/total liabilities and capital . . .
2,530.3
2,518.3
2,498.1
2,536.7
2,556.4
2,568.4
2,571.8
2,643.9
2,799.7
2,687.5
2,674.3
21
22
23
24
25
26
27
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
1,798.4
540.7
467.8
789.9
390.7
170.4
170.8
1,807.4
542.7
477.3
787.5
367.4
173.1
170.3
1,791.9
523.3
482.4
786.3
366.8
168.5
170.9
1,819.5
540.0
490.8
788.7
379.2
168.6
169.4
1,833.6
544.2
497.7
791.7
377.3
174.7
170.8
1,830.8
537.4
504.4
789.0
388.1
177.5
172.1
1,843.7
547.5
514.8
781.4
380.0
175.1
173.1
1,896.8
594.8
521.7
780.3
394.1
180.2
172.8
2,014.6
689.6
533.9
791.1
410.6
199.8
174.8
1,894.5
576.2
531.1
787.3
429.3
188.2
175.4
1,891.9
567.7
534.8
789.5
422.2
185.0
175.1
274.0
275.1
276.5
288.8
289.8
292.5
298.5
303.6
307.5
313.7
319.5
183.3
182.8
183.5
185.6
194.6
200.0
194.8
195.0
195.0
190.0
189.6
1,993.3
416.1
248.8
167.2
27.8
1,549.4
129.3
1,420.1
452.3
436.3
300.1
231.4
1,985.3
417.1
250.2
166.9
27.0
1,541.3
123.3
1,418.0
449.8
440.7
300.8
226.7
1,990.0
419.6
253.1
166.5
27.4
1,543.0
117.3
1,425.8
452.5
445.8
303.6
223.9
2,014.0
432.5
263.2
169.4
28.7
1,552.8
122.7
1,430.1
448.4
451.9
305.3
224.6
2,029.4
440.2
264.5
175.7
29.3
1,559.8
123.1
1,436.7
448.4
457.3
308.1
222.9
2,039.8
448.0
267.5
180.5
27.9
1,564.0
118.9
1,445.1
447.2
461.7
310.1
226.1
2,046.2
450.6
272.9
177.8
26.0
1,569.6
122.5
1,447.1
447.2
467.6
311.5
220.8
2,090.2
454.4
278.1
176.4
28.1
1,607.6
137.8
1,469.9
453.9
472.7
312.4
230.8
2,150.5
456.8
282.4
174.4
27.8
1,665.9
142.5
1,523.4
486.7
487.8
319.1
229.8
2,132.1
459.0
286.2
172.8
26.4
1,646.7
138.3
1,508.4
474.3
490.4
315.7
228.1
2.125.9
461.1
288.9
172.2
29.0
1,635.7
134.5
1,501.2
472.7
494.7
312.9
220.8
194.3
24.4
22.2
80.3
205.8
28.7
23.8
84.2
180.1
26.3
22.9
66.7
187.8
27.2
23.2
71.7
189.3
26.6
23.7
73.1
180.4
26.9
22.8
65.9
183.1
29.7
23.4
65.5
207.6
29.8
22.2
86.1
251.3
39.6
25.6
110.9
194.1
31.2
23.6
74.0
186.5
27.0
23.4
71.0
33.0
34.3
35.1
34.0
30.2
34.0
32.0
33.6
31.9
34.1
30.5
34.4
30.9
33.6
35.8
33.7
40.3
34.8
31.7
33.7
30.5
34.6
MEMO
28
29
U.S. government securities (including
trading account)
Other securities (including trading
account)
DOMESTICALLY CHARTERED
COMMERCIAL B A N K S 2
30
31
32
33
34
35
36
37
38
39
40
41
Loans and securities
Investment securities
U.S. government securities
Other
Trading account assets
Total loans
Interbank loans
Loans excluding interbank
Commercial and industrial
Real estate
Individual
All other
Total cash assets
Reserves with Federal Reserve Banks
Cash in vault
Cash items in process of collection . . .
Demand balances at U . S . depository
institutions
Other cash assets
47
42
43
44
45
46
48
Other assets
150.3
142.8
144.1
143.2
141.7
145.5
142.7
143.0
166.0
142.9
145.5
49
Total assets/total liabilities and capital . . .
2,337.9
2,334.0
2,314.1
2,345.0
2,360.3
2,365.7
2,372.1
2,440.8
2,567.7
2,469.1
2,457.9
50
51
52
53
54
55
56
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
1,749.1
533.1
465.8
750.1
309.1
112.0
167.7
1,758.7
535.3
475.2
748.1
294.2
113.9
167.2
1,741.4
515.5
480.3
745.6
293.5
111.5
167.8
1,768.0
532.1
488.7
747.2
300.5
110.3
166.2
1,779.9
536.1
495.5
748.2
295.5
117.3
167.7
1,775.2
529.3
502.1
743.8
305.2
116.4
168.9
1,788.6
539.7
512.5
736.5
299.3
114.2
169.9
1,840.5
586.8
519.2
734.5
312.6
118.0
169.6
1,952.8
680.8
531.4
740.6
321.6
121.7
171.6
1,836.3
567.9
528.6
739.7
340.3
120.2
172.3
1,833.9
559.9
532.3
741.7
334.7
117.3
172.0
1. Commercial banking institutions include insured domestically chartered
commercial banks, branches and agencies of foreign banks, Edge Act and
Agreement corporations, and N e w York State foreign investment corporations.
2. Insured domestically chartered commercial banks include all member banks
and insured nonmember banks.
NOTE. Figures are partly estimated. They include all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries. Loan and securities data for domestically chartered commercial banks are estimates for the last
Wednesday of the month based on a sample of weekly reporting banks and
quarter-end condition report data. Data for other banking institutions are estimates made for the last Wednesday of the month based on a weekly reporting
sample of foreign-related institutions and quarter-end condition reports.
Weekly Reporting
Commercial
Banks
A19
1.26 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1.4 Billion or More on
December 31, 1982, Assets and Liabilities
M i l l i o n s of dollars, W e d n e s d a y
figures
1987
1986
Account
Dec. 31
3 U.S. Treasury and government agency
4
Investment account, by maturity
6
One year or less
7
Over one through five years
8
Over five years
9 Other securities
10
Trading account
11
Investment account
1?
States and political subdivisions, by maturity
13
One year or less
Over one year
14
Is;
Other bonds, corporate stocks, and securities
16 Other trading account assets
17 Federal funds sold 1
18
To commercial banks
19
To nonbank brokers and dealers in securities
70
71 Other loans and leases, gross 2
?•>
73
Commercial and industrial2
Bankers acceptances and commercial paper
74
75
All other
76
U.S. addressees
Non-U.S. addressees
27
Real estate loans 2
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions
All other
Lease financing receivables
LESS: Unearned income
Loan and lease reserve 2
Other loans and leases, net 2
All other assets
Jan. 21
Jan. 28
Feb. 4
Feb. 11
Feb. 18
Total liabilities
66 Residual (total assets minus total liabilities)4
Feb. 25
97,060
1,008,453
116,608
21,251
95,357
17,264
41,739
36,355
67,511
3,321
64,190
52,887
6,965
45,922
11,303
4,471
51,363
31,372
13,858
6,133
798,314
780,374
289,127
2,426
286,701
282,922
3,779
61,039
40,056
13,435
7,548
793,712
775,571
286,786
2,356
284,429
280,698
3,730
63,797
41,125
14,734
7,938
787,405
769,281
283,179
2,381
280,798
277,103
3,695
58,961
36,185
15,364
7,412
788,426'
770,370'
281,289'
2,539
278,750'
274,895'
3,854'
63,949
37,141
16,857
9,951
787,387'
769,328'
282,255'
2,471
279,784'
276,024'
3,760
58,948
35,967
15,539
7,442
784,998
766,973
284,023
2,691
281,332
277,602
3,730
64,078
39,753
15,454
8,871
783,522
765,412
283,002
2,530
280,472
276,731
3,742
56,932
33,220
15,250
8,462
785,625
767,398
282,013
2,634
279,379
275,597
3,782
59,705
35,832
15,904
7,969
782,782
764,518
281,049
2,354
278,695
274,904
3,791
209,814
145,397
56,176
20,502
6,6%
28,978
14,368
5,784
34,525
3,347
21,836
17,939
5,031
16,725
776,558
141,936
213,495
144,917
53,559
20,451
5,749
27,358
14,163
5,605
34,728
3,125
19,193
18,141
4,907
17,244
771,561
130,856
214,201
144,296
52,717
20,575
5,475
26,668
14,093
5,503
34,931
3,205
17,155
18,124
4,920
17,296
765,189
125,996
214,583'
143.779'
54,575'
20,979
6,957'
26,639'
14,158
5,375
34,852'
3,363'
18,394'
18,056
4,919'
17,275
766,232
123,878'
214,233
143,372'
51,916'
20,758
5,732
25,426'
15,434
5,339
34,859
3,264
18,655
18,059
4,901'
17,288
765,198'
123,844'
214,884
142,860
50,538
20,102
5,264
25,171
13,122
5,348
34,657
3,262
18,278
18,025
4,837
17,599
762,562
126,871
215,669
142,151
51,388
20,396
5,598
25,394
12,308
5,324
34,438
3,210
17,921
18,110
4,831
17,719
760,972
127,071
216,284
141,964
52,982
20,775
6,556
25,651
12,657
5,307
34,446
3,212
18,532
18,227
4,882
17,722
763,021
125,160
215,634
142,070
50,798
20,795
5,823
24,180
13,798
5,324
34,403
3,235
18,206
18,264
4,874
17,751
760,158
126,676
1,234,101 1,251,198
1,232,188
240,695
182,415
5,386
2,006
30,394
7,145
715
12,632
58,598
517,143
478,876
26,358
678
10,109
1,122
264,890
0
19,994
244,896
82,918
220,772
170,339
5,315
2,118
25,767
6,662
788
9,784
57,748
518,376
479,138
27,131
711
10,281
1,115
262,640
720
19,454
242,466
85,993
1,210,292 1,173,615 1,164,420 1,163,216' 1,157,932' 1,153,226 1,147,038 1,164,243
1,145,529
1,295,966 1,259,733 1,251,252 1,250,421' 1,244,992' 1,240,053
44 Total assets
4S Demand deposits
46
Individuals, partnerships, and corporations
47
States and political subdivisions
48
U.S. government
49
Depository institutions in United States
50
Banks in foreign countries
51
Foreign governments and official institutions
^7
Certified and officers' checks
53 Transaction balances other than demand deposits
54 Nontransaction balances
55
Individuals, partnerships and corporations
States and political subdivisions
S6
57
U.S. government
58
Depository institutions in the United States
59
Foreign governments, official institutions and banks
60 Liabilities for borrowed money
61
Borrowings from Federal Reserve Banks
67
Treasury tax-and-loan notes
63
All other liabilities for borrowed money 3
64
Other liabilities and subordinated note and debentures
65
Jan. 14'
117,787
95,856
134,935
112,964' 105,562' 104,240
107,770
109,240
1,019,096 1,021,107 1,016,016 1,013,579' 1,015,586' 1,008,942' 1,011,174 1,008,251
113,720
115,658
113,806
114,829
115,516' 113,804' 114,371
114,731
19,158
17,176
20,951'
18,311'
18,462
19,896
18,957
19,423
96,544
96,500
94,565'
95,492'
95,909
93,909
95,774
95,406
18,114
18,104
17,465
17,594
17,816
18,693
18,422
18,939
42,433
40,627'
41,304
41,810
41,558'
42,293
42,548
42,004
36,602
36,631
34,585
37,272
36,491
33,800
34,287
34,709
67,641
67,680
68,12c 68,309' 68,252
72,190
69,439
68,435
3,774
3,296
3,453
3,72c
7,227
4,514
3,740
3,554'
64,227
64,345
64,695
64,566'
64,589'
64,478
64,963
64,925
53,059
52,961
53,967
53,555'
53,242
54,659
54,159
53,798
6,997
7,058
7,515
7,383
7,265
8,140
7,470
7,573
46,001
45,964
46,172'
46,519
46,497
46,283
45,977
46,586
11,266
11,034'
11,286
10,304
10,728
10,767'
11,236
10,766
4,762
4,960
4,751
4,326
4,809
5,179
4,337
3,766
1 Cash and balances due from depository institutions
2 Total loans, leases and securities, net
78
79
30
31
37
33
34
35
36
37
38
39
40
41
47
43
Jan. 7'
289,619
222,598
6,975
1,815
33,985
7,767
887
15,592
60,137
509,133
470,730
25,813
762
10,792
1,035
261,730
443
18,550
242,736
89,674
245,702
191,054
5,905
2,650
27,154
7,355
803
10,780
61,719
517,245
479,157
25,756
780
10,554
998
267,587
0
17,958
249,629
81,362
233,140
182,609
5,557
3,158
25,293
5,860
743
9,920
60,228
516,675
478,055
26,250
783
10,520
1,067
270,494
0
18,993
251,501
83,883
241,051'
183,256'
6,071
4,218
28,468
8,331
891
9,816
58,795'
516,674
478,443
26,152
671
10,349
1,058
262,372
5
19,629
242,738
84,324'
228,412'
174,114'
5,311
2,373
25,535
7,158
789
13,132
57,282'
515,414'
476,759'
26,156
680
10,749
1,070
268,150
3,447
19,646
245,056
88,674'
230,612
175,476
6,268
5,152
25,820
6,314
725
10,856
59,412
516,147
478,036
26,093
697
10,203
1,117
260,766
0
17,667
243,099
86,288
215,339
166,303
4,948
2,743
23,743
6,784
697
10,120
58,382
516,709
478,212
26,548
697
10,163
1,089
270,696
25
19,558
251,113
85,911
85,674
86,118
86,832
87,205'
87,06C
86,826
87,063
86,955
86,659
988,977
797,803
154,365
1,598
1,013
585
227,984
982,751
794,244
154,891
1,623
1,053
570
232,269
976,532
789,502
155,758
1,748
1,182
566
231,245
978,609'
790,222'
156,149
1,764
1,190
574
231,024
979,875'
793,436'
156,570'
1,821
1,260
561
229,668'
975,309
787,877
155,579
1,829
1,269
560
231,491
973,574
787,450
156,770
1,796
1,254
542
231,048
976,860
788,562
156,566
974,451
785,861
158,500
2,093
1,592
501
231,574
MEMO
Total loans and leases (gross) and investments adjusted
68 Total loans and leases (gross) adjusted2'5
6 9 Time deposits in amounts of $100,000 or more
6
7 0 Loans sold outright to affiliates—total
Commercial and industrial
71
Other
77
73 Nontransaction savings deposits (including MMDAs)
67
5
1. Includes securities purchased under agreements to resell.
2. Levels of major loan items were affected by the Sept. 26, 1984, transaction
between Continental Illinois National Bank and the Federal Deposit Insurance
Corporation. For details see the H.4.2 statistical release dated Oct. 5, 1984.
3. Includes federal funds purchased and securities sold under agreements to
repurchase', for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31, 1977, see table 1.13.
1,717
1,192
525
232,147
4. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.
5. Exclusive of loans and federal funds transactions with domestic commercial
banks.
6. Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
A20
1.28
DomesticNonfinancialStatistics • May 1987
LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures except as noted
1986
1987
Account
Dec. 31'
1 Cash and balances due from depository institutions
2 Total loans, leases and securities, net 1
Securities
3 U.S. Treasury and government agency 2
Trading account 2
4
5
Investment account, by maturity
One year or less
6
Over one through five years
7
Over five years
8
9 Other securities 2
Trading account 2
10
11
Investment account
12
States and political subdivisions, by maturity
13
One year or less
14
Over one year
Other bonds, corporate stocks and securities
15
16 Other trading account assets 2
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
Loans and leases
Federal funds sold 3
To commercial banks
To nonbank brokers and dealers in securities
To others
Other loans and leases, gross
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
Real estate loans
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions
All other
Lease financing receivables
LESS: Unearned income
Loan and lease reserve
Other loans and leases, net
All other assets 4
44 Total assets
Deposits
45 Demand deposits
46
Individuals, partnerships, and corporations
47
States and political subdivisions
48
U.S. government
49
Depository institutions in the United States
Banks in foreign countries
50
51
Foreign governments and official institutions
52
Certified and officers' checks
53 Transaction balances other than demand deposits
ATS, NOW, Super NOW, telephone transfers)
54 Nontransaction balances
55
Individuals, partnerships and corporations
56
States and political subdivisions
57
U.S. government
58
Depository institutions in the United States
59
Foreign governments, official institutions and banks
60 Liabilities for borrowed money
61
Borrowings from Federal Reserve Banks
62
Treasury tax-and-loan notes
63
All other liabilities for borrowed money 5
64 Other liabilities and subordinated note and debentures
65 Total liabilities
66 Residual (total assets minus total liabilities) 6
Jan. 7
Jan. 14
Jan. 21
Jan. 28
Feb. 4
Feb. 11
Feb. 18
Feb. 25
32,884
23,241
29,606
26,664
32,952
26,884
24,688
33,441
25,306
219,526
220,193
220,232
220,952
224,049
217,429
222,500
220,775
221,734
0
0
13,529
1,423
5,330
6,775
0
0
16,484
14,616
1,696
12,920
1,868
0
0
0
13,748
1,850
4,916
6,982
0
0
16,230
14,050
1,448
12,602
2,180
0
0
0
13,182
1,569
4,637
6,976
0
0
16,097
13,981
1,425
12,556
2,116
0
0
0
13,179
1,583
4,631
6,965
0
0
16,093
13,960
1,597
12,363
2,133
0
0
0
13,335
1,357
4,440
7,538
0
0
16,154
13,940
1,587
12,353
2,214
0
0
0
13,397
1,307
4,642
7,447
0
0
16,214
13,918
1,586
12,332
2,295
0
0
0
13,416
1,290
4,746
7,380
0
0
16,284
13,901
1,467
12,433
2,384
0
0
0
13,927
1,377
5,180
7,370
0
0
16,275
13,909
1,471
12,439
2,365
0
0
0
13,924
1,688
4,608
7,628
0
0
16,342
13,916
1,470
12,446
2,426
0
20,477
10,054
5,858
4,565
175,324
171,026
67,561
544
67,016
66,585
432
37,504
20,750
21,610
11,321
3,061
7,229
6,091
346
8,413
1,072
7,679
4,268
1,562
4,728
169,035
79,865
21,706
9,450
6,184
6,072
175,035
170,734
67,488
615
66,873
66,438
436
38,244
20,989
22,025
12,451
2,982
6,591
6,430
260
8,535
908
5,856
4,300
1,578
4,948
168,509
66,894
25,000
12,162
6,759
6,079
172,491
168,205
65,647
590
65,056
64,598
459
38,454
20,829
21,368
12,076
2,823
6,468
6,750
236
8,769
989
5,162
4,286
1,582
4,957
165,952
63,178
24,095
10,773
7,640
5,682
174,112
169,805
64,796
779
64,017
63,490
527
38,540
20,803
23,200
12,395
4,202
6,603
6,540
231
8,760
1,136
5,799
4,307
1,582
4,943
167,586
62,208
26,680
10,076
8,583
8,022
174,402
170,081
65,909
768
65,141
64,686
455
38,541
20,695
21,460
12,204
2,979
6,277
6,980
240
8,749
1,062
6,446
4,321
1,583
4,940
167,879
61,762
22,532
9,355
7,262
5,916
171,903
167,567
66,310
810
65,500
65,032
468
38,513
20,667
20,285
11,439
2,511
6,334
5,874
265
8,682
1,073
5,897
4,336
1,555
5,062
165,286
63,870
28,188
13,909
6,738
7,540
171,376
167,000
66,003
744
65,259
64,730
529
38,619
20,627
20,938
11,502
2,985
6,452
5,265
266
8,532
1,017
5,732
4,376
1,557
5,207
164,611
62,530
23,929
10,232
6,808
6,889
173,437
169,048
65,889
826
65,064
64,518
546
38,979
20,610
21,796
11,689
3,839
6,268
6,001
264
8,604
976
5,929
4,389
1,600
5,194
166,643
63,814
24,280
11,484
7,034
5,762
174,008
169,601
66,212
625
65,587
65,001
586
39,146
20,603
20,760
11,546
3,279
5,935
6,932
257
8,620
1,027
6,044
4,406
1,595
5,225
167,187
66,176
332,275
310,328
313,016
309,825
318,762
308,184
309,718
318,030
313,216
78,411
55,129
1,106
245
9,213
6,453
681
5,583
61,673
44,102
705
380
5,747
6,023
641
4,074
59,464
43,072
719
561
5,918
4,560
610
4,025
64,512
44,768
821
627
6,313
7,011
734
4,239
65,564
43,905
686
439
7,285
5,848
617
6,783
60,018
41,623
907
1,122
5,942
5,100
560
4,763
54,456
36,570
605
452
5,797
5,549
549
4,933
66,579
43,938
624
292
7,866
5,819
538
7,501
60,240
41,459
610
372
7,368
5,434
646
4,350
7,742
97,844
88,643
6,064
50
2,524
563
80,216
0
4,609
75,608
39,978
7,907
98,981
89,943
5,940
50
2,540
508
80,801
0
4,506
76,295
33,037
7,753
98,629
89,513
6,093
50
2,441
531
82,980
0
4,610
78,370
36,140
7,584
99,180
90,124
6,177
37
2,322
520
74,184
0
4,825
69,359
36,341
7,449
98,517
89,336
6,165
38
2,448
530
81,178
2,990
4,824
73,364
38,053
7,672
99,271
90,290
6,180
38
2,178
585
77,602
0
4,130
73,472
35,378
7,558
98,981
89,887
6,302
32
2,184
576
85,547
0
4,609
80,938
34,797
7,551
99,873
90,829
6,174
33
2,205
631
82,840
0
4,824
78,017
33,099
7,440
99,775
90,551
6,374
34
2,192
624
83,370
450
4,497
78,423
34,462
304,191
282,398
284,965
281,802
290,760
279,941
281,340
289,942
285,287
28,084
27,930
28,050
28,024
28,002
28,242
28,377
28,088
27,929
204,440
174,427
35,176
204,818
174,840
35,727
202,532
173,252
35,491
204,311
175,039
36,057
208,292
178,802
35,885
203,252
173,641
36,016
203,854
174,153
36,508
205,647
175,445
36,774
205,525
175,258
36,440
MEMO
67 Total loans and leases (gross) and investments adjusted1-7
68 Total loans and leases (gross) adjusted 7
69 Time deposits in amounts of $100,000 or more
1. Excludes trading account securities.
2. Not available due to confidentiality.
3. Includes securities purchased under agreements to resell.
4. Includes trading account securities.
5. Includes federal funds purchased and securities sold under agreements to
repurchase.
6. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
7. Exclusive of loans and federal funds transactions with domestic commercial
banks.
NOTE. These data a/so appear in the Board's H.4.2 (504) release. For address,
see inside front cover.
Weekly Reporting
1.30
Commercial
LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS 1
Liabilities
Banks
A21
Assets and
Millions of dollars, Wednesday figures
1987
1986
Account
Dec. 31'
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Cash and due from depository institutions.
Total loans and securities
U . S . Treasury and govt, agency securities
Other securities
Federal funds sold 2
To commercial banks in the United States
To others
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial
paper
All other
U.S. addressees
Non-U.S. addressees
To financial institutions
Commercial banks in the United States .
Banks in foreign countries
Nonbank financial institutions
To foreign govts, and official institutions..
For purchasing and carrying securities . .
All other
Other assets (claims on nonrelated parties)..
Net due from related institutions
Total assets
Deposits or credit balances due to other
than directly related i n s t i t u t i o n s . . . .
Transaction accounts and credit balances 3
Individuals, partnerships, and
corporations
Other
Nontransaction accounts 4
Individuals, partnerships, and
corporations
Other
Borrowings from other than directly
related institutions
Federal funds purchased 5
From commercial banks in the
United States
From others
Other liabilities for borrowed m o n e y . . . .
To commercial banks in the
United States
To others
Other liabilities to nonrelated parties
Net due to related institutions
Total liabilities
12,012
91,680
6,509
6,101
6,662
5,666
996
72,408
43,132
Jan. 7
9,997
85,084
6,713 r
6,120'
4,612
3,308
1,303
67,639
40,951
Jan. 14
Jan. 21
Jan. 28
Feb. 4
Feb.11
Feb. 18
Feb. 25
9,790
84,241'
6,495'
6,160'
5,513
3,864
1,648
66,073
40,183
9,990
86,466
6,629'
6,258'
7,463
5,856
1,606
66,116
40,530
10,191
86,116
6,428'
6,454'
6,645
4,880
1,765
66,588'
40,802'
10,386
82,671
6,634
6,628
5,190
3,958
1,232
64,218
40,111
9,967
83,143
6,704
6,771
6,190
5,488
702
63,478
40,493
9,799
84,807
7,002
6,727
5,808
4,826
982
65,270
41,290
9,698
85,991
6,555
6,852
6,069
4,660
1,408
66,515
41,914
3,099
40,032
38,006
2,027
17,382
12,787
1,249
3,345
548
5,105
6,242
23,675
14,531
141,898
3,039
37,912
35,764
2,149
16,059
11,916
1,092
3,051
525
3,900
6,204
22,378
15,988
133,448
2,893
37,290
35,085
2,205
15,974
11,981
1,092
2,900
527
3,4%
5,892
22,688'
16,615'
133,334'
2,988
37,542
35,324
2,218
15,546
11,785
990
2,772
556
3,602
5,883
22,756
14,980
134,191
2,998
37,805'
35,399'
2,406'
15,798
12,044
1,048
2,706
576
3,610
5,802
22,878'
13,701
132,886
2,969
37,142
35,042
2,100
14,684
11,119
996
2,569
556
3,119
5,748
22,408
16,227
131,692
3,161
37,331
35,158
2,173
14,576
11,007
927
2,643
573
2,196
5,639
22,417
14,627
130,154
3,067
38,223
35,823
2,400
15,266
11,723
987
2,556
543
2,502
5,668
21,653
15,842
132,101
2,841
39,072
36,851
2,222
15,639
12,250
949
2,440
776
2,769
5,417
22,121
14,015
131,826
42,413
3,973
38,694
3,191
39,572
3,576
39,745
3,809
39,225
3,488
38,462
3,361
38,476
3,148
39,316
3,446
39,354
3,016
1,898
2,075
38,440
1,884
1,308
35,502
1,843
1,733
35,996
1,969
1,840
35,936
1,859
1,629
35,737
1,958
1,403
35,101
1,707
1,441
35,329
1,827
1,620
35,870
1,824
1,192
36,338
31,525
6,915
28,774
6,728
29,114
6,882
29,275
6,661
28,868
6,869
28,012
7,089
27,901
7,428
28,500
7,370
29,048
7,290
50,880
21,849
55,698
31,088
53,770
28,147
54,113
28,405
51,234
26,191
55,158
30,034
51,822
26,400
54,015
27,256
50,437
22,344
11,551
10,297
29,031
20,112
10,976
24,610
18,361
9,786
25,623
17,123
11,282
25,707
16,001
10,190
25,042
19,244
10,790
25,124
16,436
9,964
25,422
16,869
10,387
26,759
12,343
10,001
28,092
23,776
5,256
25,067
23,538
141,898
21,691
2,919
24,077
14,979
133,448
22,580
3,042
24,521'
15,472
133,334
22,133
3,574
24,517
15,817
134,191
21,864
3,178
24,967
17,460
132,886
21,609
3,515
24,590
13,482
131,692
21,952
3,470
24,289
15,566
130,154
23,052
3,707
23,594
15,176
132,101
23,797
4,2%
23,991
18,044
131,826
73,227
60,617
69,859
57,026
68,396'
55,741
68,824
55,938
67,594
54,332
66,648
53,172
68,257
54,528
69,080
55,673
MEMO
41 Total loans (gross) and securities adjusted 6
42 Total loans (gross) adjusted 6
1. Effective Jan. 1, 1986, the reporting panel includes 65 U.S. branches and
agencies of foreign banks that include those branches and agencies with assets of
$750 million or more on June 30, 1980, plus those branches and agencies that had
reached the $750 million asset level on Dec. 31, 1984.
2. Includes securities purchased under agreements to resell.
3. Includes credit balances, demand deposits, and other checkable deposits.
69,192'
56,310'
4. Includes savings deposits, money market deposit accounts, and time
deposits.
5. Includes securities sold under agreements to repurchase.
6. Exclusive of loans to and federal funds sold to commercial banks in the
United States.
A22
1.31
DomesticNonfinancialStatistics • May 1987
GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations'
Billions of dollars, estimated daily-average balances, not seasonally adjusted
Commercial banks
Type of holder
1981
Dec.
1982
Dec.
1983
Dec.
1985
1984
Dec.
Sept. 3 4
1986
Dec.
Mar.
Sept.
June
1 All holders—Individuals, partnerships, and
corporations
288.9
291.8
293.5
302.7
299.3
321.0
307.4
322.4
333.6
2
3
4
5
6
28.0
154.8
86.6
2.9
16.7
35.4
150.5
85.9
3.0
17.0
32.8
161.1
78.5
3.3
17.8
31.7
166.3
81.5
3.6
19.7
28.1
167.2
82.0
3.5
18.5
32.3
178.5
85.5
3.5
21.2
31.8
166.6
84.0
3.4
21.6
32.3
180.0
86.4
3.0
20.7
35.9
185.9
86.3
3.3
22.2
Financial business
Nonfinancial business
Consumer
Foreign
Other
Dec.
f
|
n.a.
1
1
t
Weekly reporting banks
1981
Dec.
1982
Dec.
1983
Dec.
1985
1984
Dec. 2
Sept. 3 - 4
7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
Dec.
Mar.
June
Sept.
Dec.?
137.5
144.2
146.2
157.1
153.6
168.6
159.7
168.5
174.7
195.1
21.0
75.2
30.4
2.8
8.0
26.7
74.3
31.9
2.9
8.4
24.2
79.8
29.7
3.1
9.3
25.3
87.1
30.5
3.4
10.9
22.7
85.5
31.6
3.3
10.5
25.9
94.5
33.2
3.1
12.0
25.5
86.8
32.6
3.3
11.5
25.7
93.1
34.9
2.9
11.9
28.9
94.8
35.0
3.2
12.8
32.5
106.4
37.5
3.3
15.4
1. Figures include cash items in process of collection. Estimates of gross
deposits are based on reports supplied by a sample of commercial banks. Types of
depositors in each category are described in the June 1971 BULLETIN, p. 466.
Figures may not add to totals because of rounding.
2. Beginning in March 1984, these data reflect a change in the panel of weekly
reporting banks, and are not comparable to earlier data. Estimates in billions of
dollars for December 1983 based on the new weekly reporting panel are: financial
business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign. 3.1; other,
9.5.
3. Beginning March 1985, financial business deposits and, by implication, total
gross demand deposits have been redefined to exclude demand deposits due to
1986
thrift institutions. Historical data have not been revised. The estimated volume of
such deposits for December 1984 is S5.0 billion at all insured commercial banks
and $3.0 billion at weekly reporting banks.
4. Historical data back to March 1985 have been revised to account for
corrections of bank reporting errors. Historical data before March 1985 have not
been revised, and may contain reporting errors. Data for all commercial banks for
March 1985 were revised as follows (in billions of dollars): all holders, - . 3 ;
financial business, - . 8 ; nonfinancial business, - . 4 ; consumer, .9; foreign, .1;
other, - . 1 . Data for weekly reporting banks for March 1985 were revised as
follows (in billions of dollars): all holders, - .1; financial business, - .7; nonfinancial business, - . 5 ; consumer. 1.1; foreign, .1; other, - . 2 .
Financial Markets
1.32
A23
COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1987
1986
Instrument
Dec.
Dec.
Dec.
Dec.
Dec.
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
166,436
187,658
237,586
300,899
330,828
326,861 r
325,406'
328,275'
322,292'
330,828'
336,996
34,605
44,455
56,485
78,443
99,980
94,463 r
97,799'
99,186'
95,015'
99,980'
101,731
2,516
2,441
2,035
1,602
2,265
1,799
1,980
2,172
2,031
2,265
84,393
97,042
110,543
135,504
152,385
148,323'
146,293'
147,056'
146,856'
152,385'
157,252
32,034
47,437
35,566
46,161
42,105
70,558
44,778
86,952
40,860
78,463
40,415
84,075'
37,455
81,314'
38,957
82,033'
39,205
80,421'
40,860
78,463'
45,085
78,013
3
2
3
4
5
6
Financial companies
Dealer-placed
paper4
Total
Bank-related (not seasonally
adjusted)
Directly placed
paper5
Total
Bank-related (not seasonally
adjusted)
Nonfinancial companies 6
2,284
Bankers dollar acceptances (not seasonally adjusted) 7
7 Total
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others
Basis
14 Imports into United States
15 Exports from United States
16 All other
8
9
10
11
12
13
79,543
78,309
78,364
68,413
64,974
64,480
67,009
65,920
64,952
64,974
65,007
10,910
9,471
1,439
9,355
8,125
1,230
9,811
8,621
1,191
11,197
9,471
1,726
13,423
11,707
1,716
12,127
9,794
2,333
13,101
11,001
2,101
12,569
10,178
2,391
12,787
10,951
1,835
13,423
11,707
1,716
13,236
10,570
2,666
1,480
949
66,204
418
729
67,807
0
671
67,881
0
937
56,279
0
1,317
50,234
0
897
51,456
0
924
52,984
0
1,131
52,220
0
1,052
51,113
0
1,317
50,234
0
983
50,787
17,683
16,328
45,531
15,649
16,880
45,781
17,845
16,305
44,214
15,147
13,204
40,062
14,670
12,940
37,364
15,796
12,948
35,736
16,612
12,693
37,704
15,980
12,612
37,327
15,354
12,699
36,899
14,670
12,940
37,364
14,426
12,785
37,795
1. Effective Dec. 1, 1982, there was a break in the commercial paper series. The
key changes in the content of the data involved additions to the reporting panel,
the exclusion of broker or dealer placed borrowings under any master note
agreements from the reported data, and the reclassification of a large portion of
bank-related paper from dealer-placed to directly placed.
2. Correction of a previous misclassification of paper by a reporter has created
a break in the series beginning December 1983. The correction adds some paper to
nonfinancial and to dealer-placed financial paper.
3. Institutions engaged primarily in activities such as, but not limited to,
commercial, savings, and mortgage banking; sales, personal, and mortgage
financing; factoring, finance leasing, and other business lending; insurance
underwriting; and other investment activities.
1.33
4. Includes all financial company paper sold by dealers in the open market.
5. As reported by financial companies that place their paper directly with
investors.
6. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
7. Beginning October 1984, the number of respondents in the bankers acceptance survey were reduced from 340 to 160 institutions—those with $50 million or
more in total acceptances. The new reporting group accounts for over 95 percent
of total acceptances activity.
PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per annum
Effective Date
11.50
12.00
12.50
13.00
12.75
12.50
12.00
11.75
11.25
10.75
Month
1985—Jan. 1 5 . .
May 20.
June 1 8 . .
10.50
10.00
9.50
1986—Mar. 7 . .
Apr. 21.
July 1 1 . .
Aug. 2 6 . .
9.00
8.50
8.00
7.50
1984—Jan
Feb
June
July
Aug
Sept
Oct
Dec
1985—Jan. .
Feb.
Mar.
Apr.
May.
June
July.
NOTE. These data also appear in the Board's H.15 (519) release. For address,
see inside front cover.
Average
rate
11.00
11.00
11.21
11.93
12.39
12.60
13.00
13.00
12.97
12.58
11.77
11.06
10.61
10.50
10.50
10.50
10.31
9.78
9.50
Month
1985—Aug.
Sept.
Oct.
Nov.
Dec.
1986—Jan.
Feb..
Mar.
Apr..
May
June.
July
Aug.
Sept.
Oct..
Nov.
Dec.
1987—Jan. .
A24
1.35
DomesticNonfinancialStatistics • May 1987
INTEREST RATES Money and Capital Markets
Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.
1986
Instrument
1984
1985
1987
1987, week ending
1986
Nov.
Dec.
Jan.
Feb.
Jan. 30
Feb. 6
Feb. 13
Feb. 20
Feb. 27
MONEY MARKET RATES
1 Federal funds 1 - 2
2 Discount window borrowing 1 2 ' 3
Commercial paper4-5
3
1-month
4
3-month
5
6-month
Finance paper, directly placed 4 - 5
6
1-month
7
3-month
8
6-month
Bankers acceptances 5 - 6
9
3-month
10
6-month
Certificates of deposit, secondary market7
11
1-month
12
3-month
13
6-month
14 Eurodollar deposits, 3-month 8
U.S. Treasury bills 5
Secondary market 9
15
3-month
16
6-month
17
1-year
Auction average 10
18
3-month
19
6-month
20
1-year
10.22
8.80
8.10
7.69
6.80
6.33
6.04
5.50
6.91
5.50
6.43
5.50
6.10
5.50
6.13
5.50
6.22
5.50
6.14
5.50
6.21
5.50
5.95
5.50
10.05
10.10
10.16
7.94
7.95
8.01
6.62
6.49
6.39
5.84
5.76
5.69
6.63
6.10
5.88
5.95
5.84
5.76
6.12
6.05
5.99
5.94
5.87
5.78
6.01
5.93
5.87
6.20
6.11
6.04
6.20
6.14
6.08
6.08
6.04
6.00
9.97
9.73
9.65
7.91
7.77
7.75
6.58
6.38
6.31
5.79
5.67
5.58
6.32
5.81
5.74
5.86
5.59
5.60
6.02
5.88
5.79
5.86
5.61
5.55
5.96
5.77
5.60
6.14
5.94
5.84
6.06
5.92
5.87
5.95
5.89
5.85
10.14
10.19
7.92
7.96
6.39
6.29
5.67
5.59
5.96
5.78
5.74
5.65
5.99
5.93
5.81
5.71
5.86
5.81
6.06
6.00
6.05
5.98
6.01
5.94
10.17
10.37
10.68
10.73
7.97
8.05
8.25
8.28
6.61
6.52
6.51
6.71
5.80
5.76
5.76
5.96
6.66
6.04
5.95
6.23
5.94
5.87
5.85
6.10
6.10
6.10
6.10
6.32
5.92
5.88
5.87
6.14
5.99
5.97
5.97
6.24
6.14
6.13
6.14
6.44
6.21
6.21
6.20
6.36
6.11
6.11
6.12
6.36
9.52
9.76
9.92
7.48
7.65
7.81
5.98
6.03
6.08
5.35
5.41
5.48
5.53
5.55
5.55
5.43
5.44
5.46
5.59
5.59
5.63
5.51
5.47
5.50
5.62
5.61
5.59
5.75
5.75
5.71
5.55
5.55
5.64
5.45
5.43
5.57
9.57
9.80
9.91
7.49
7.66
7.76
5.97
6.02
6.07
5.35
5.42
5.45
5.49
5.53
5.60
5.45
5.47
5.44
5.59
5.60
5.74
5.44
5.43
n.a.
5.58
5.59
n.a.
5.72
5.69
n.a.
5.66
5.70
n.a.
5.40
5.41
n.a.
10.89
11.65
11.89
12.24
12.40
12.44
12.48
12.39
8.43
9.27
9.64
10.13
10.51
10.62
10.97
10.79
6.46
6.87
7.06
7.31
7.55
7.68
7.85
7.80
5.80
6.28
6.46
6.76
7.08
7.25
7.42
7.52
5.87
6.27
6.43
6.67
6.97
7.11
7.28
7.37
5.78
6.23
6.41
6.64
6.92
7.08
n.a.
7.39
5.96
6.40
6.56
6.79
7.06
7.25
n.a.
7.54
5.82
6.26
6.46
6.66
6.96
7.15
n.a.
7.47
5.92
6.37
6.53
6.74
7.03
7.22
n.a.
7.50
6.05
6.48
6.65
6.88
7.13
7.31
n.a.
7.59
5.98
6.39
6.57
6.81
7.09
7.28
n.a.
7.58
5.90
6.35
6.52
6.74
7.01
7.20
n.a.
7.50
11.99
10.75
8.14
7.81
7.67
7.60
7.69
7.67
7.68
7.76
7.71
7.61
9.61
10.38
10.10
8.60
9.58
9.11
6.95
7.76
7.32
6.19
7.13
6.85
6.29
7.25
6.86
6.12
6.93
6.61
6.05
6.98
6.61
6.05
7.05
6.56
6.00
7.00
6.57
6.10
7.10
6.67
6.05
6.95
6.62
6.05
6.90
6!59
13.49
12.71
13.31
13.74
14.19
12.05
11.37
11.82
12.28
12.72
9.71
9.02
9.47
9.95
10.39
9.37
8.68
9.20
9.51
10.07
9.23
8.49
9.02
9.41
9.97
9.04
8.36
8.86
9.23
9.72
9.03
8.38
8.88
9.20
9.65
9.01
8.37
8.83
9.16
9.68
9.02
8.38
8.87
9.19
9.65
9.04
8.39
8.89
9.22
9.66
9.05
8.40
8.90
9.22
9.67
9.01
8.36
8.86
9.17
9.64
13.81
12.06
9.61
9.31
9.08
8.92
8.82
8.81
8.80
8.88
8.80
8.79
11.59
4.64
10.49
4.25
8.76
3.48
8.07
3.40
8.18
3.38
7.91
3.17
7.93
3.02
7.89
3.07
7.90
3.03
7.89
3.06
7.94
2.98
7.98
3.00
CAPITAL M A R K E T R A T E S
21
22
23
24
25
26
27
28
29
JO
31
32
33
34
35
36
37
38
U.S. Treasury notes and bonds 11
Constant maturities 12
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
Composite' 3
Over 10 years (long-term)
State and local notes and bonds
Moody's series 14
Aaa
Baa
Bond Buyer series 15
Corporate bonds
Seasoned issues 1 6
All industries
Aaa
Aa
A
Baa
A-rated, recently-offered utility
bonds 17
MEMO: Dividend/price ratio 18
39
Preferred stocks
40
Common stocks
1. Weekly and monthly figures are averages of all calendar days, where the
rate for a weekend or holiday is taken to be the rate prevailing on the preceding
business day. The daily rate is the average of the rates on a given day weighted by
the volume of transactions at these rates.
2. Weekly figures are averages for statement week ending Wednesday.
3. Rate for the Federal Reserve Bank of New York.
4. Unweighted average of offering rates quoted by at least five dealers (in the
case of commercial paper), or finance companies (in the case of finance paper).
Before November 1979, maturities for data shown are 30-59 days, 90-119 days,
and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 150179 days for finance paper.
5. Yields are quoted on a bank-discount basis, rather than an investment yield
basis (which would give a higher figure).
6. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quoted by the dealers).
7. Unweighted average of offered rates quoted by at least five dealers early in
the day.
8. Calendar week average. For indication purposes only.
9. Unweighted average of closing bid rates quoted by at least five dealers.
10. Rates are recorded in the week in which bills are issued. Beginning with the
Treasury bill auction held on Apr. 18, 1983, bidders were required to state the
percentage yield (on a bank discount basis) that they would accept to two decimal
places. Thus, average issuing rates in bill auctions will be reported using two
rather than three decimal places.
11. Yields are based on closing bid prices quoted by at least five dealers.
12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields
are read from a yield curve at fixed maturities. Based on only recently issued,
actively traded securities.
13. Averages (to maturity or call) for all outstanding bonds neither due nor
callable in less than 10 years, including one very low yielding "flower" bond.
14. General obligations based on Thursday figures; Moody's Investors Service.
15. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
16. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
17. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of
call protection. Weekly data are based on Friday quotations.
18. Standard and Poor's corporate series. Preferred stock ratio based on a
sample of ten issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
NOTE. These data also appear in the Board's H.15 (519) and G.I3 (415) releases.
For address, see inside front cover.
Financial Markets
1.36
STOCK MARKET
A25
Selected Statistics
1986
1984
Indicator
1987
1985
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Prices and trading (averages of daily figures)
Common stock prices
1 N e w York Stock Exchange
(Dec. 31, 1965 = 50)
2
Industrial
3
Transportation
4
Utility
5
Finance
6 Standard & Poor's Corporation (1941-43 = 10)1 . . .
7 American Stock Exchange 2
(Aug. 31, 1973 = 50)
92.46
108.01
85.63
46.44
89.28
160.50
108.09
123.79
104.11
56.75
114.21
186.84
136.00
155.85
119.85
71.35
147.18
236.34
140.82
163.15
120.65
70.69
151.73
245.30
138.32
158.06
112.03
74.20
150.23
240.18
140.91
160.10
111.24
77.84
152.90
245.00
137.06
156.52
114.06
74.56
145.56
238.27
136.74
156.56
120.04
73.38
143.89
237.36
140.84
162.10
122.27
75.77
142.97
245.09
142.12
163.85
121.26
76.07
144.29
248.61
151.17
175.60
126.61
78.54
153.32
264.51
160.23
189.17
135.49
78.19
158.41
280.94
207.96
229.10
264.38
281.18
269.93
268.55
264.30
257.82
265.14
264.65
289.02
312.61
Volume of trading (thousands
8 N e w York Stock Exchange
9 American Stock Exchange
91,084
6,107
109,191
8,355
141,306
11,846
150,831 131,155
10,853
8,930
154,770
10,513
148,228
12,272
192,419
14,755
183,478
14,962
of
shares)
126,151 137,709 128,661
12,795 10,320
9,885
Customer financing (end-of-period balances, in millions of dollars)
10 Margin credit at broker-dealers
Free credit balances
11 Margin-account 5
12 Cash-account
at
3
22,470
28,390
36,840
32,480
33,170
34,550
34,580
36,310
37,090
36,840
34,960
35,740
1,755
10,215
2,715
12,840
4,880
19,000
2,585
13,570
2,570
14,600
3,035
14,210
3,395
14,060
3,805
14,445
3,765
15,045
4,880
19,000
5,060
17,395
4,470
17,325
n a.
n a.
brokers4
Margin-account debt at brokers (percentage distribution, end of period) 6
13 Total
14
15
16
17
18
19
By equity class (in
Under 40
40-49
50-59
60-69
70-79
80 or more
100.0
100.0
100.0
18.0
18.0
16.0
9.0
5.0
6.0
34.0
20.0
19.0
31.0
20.0
20.0
13.0
8.0
8.0
f
percent)7
n.a.
11.0
8.0
8.0
n a.
n.a.
n a.
n a.
1
n.a.
n.a.
Special miscellaneous-account balances at brokers (end of period) 6
20 Total balances (millions of dollars)
Distribution by equity status
21 Net credit status
Debt status, equity of
22
60 percent or more
23
Less than 60 percent
8
75,840
99,310
59.0
58.0
29.0
31.0
(percent)
11.0
11.0
t
1
n.a.
112,401
59.0
32.0
9.0
t t t t t t t t
1 1 J 1 1 1 I 1
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Margin requirements (percent of market value and effective date) 9
24 Margin stocks
25 Convertible bonds
26 Short sales
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
70
50
70
80
60
80
65
50
65
55
50
55
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Beginning July 5, 1983, the American Stock Exchange rebased its index
effectively cutting previous readings in half.
3. Beginning July 1983, under the revised Regulation T, margin credit at
broker-dealers includes credit extended against stocks, convertible bonds, stocks
acquired through exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds,
and subscription issues was discontinued in April 1984, and margin credit at
broker-dealers became the total that is distributed by equity class and shown on
lines 17-22.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
5. New series beginning June 1984.
6. In July 1986, the N e w York Stock Exchange stopped reporting certain data
items that were previously obtained in a monthly survey of a sample of brokers
Nov. 24, 1972
65
50
65
Jan. 3, 1974
50
50
50
and dealers. Data items that are no longer reported include distributions of margin
debt by equity status of the account and special miscellaneous-account
balances.
7. Each customer's equity in his collateral (market value of collateral less net
debit balance) is expressed as a percentage of current collateral values.
8. Balances that may be used by customers as the margin deposit required for
additional purchases. Balances may arise as transfers based on loan values of
other collateral in the customer's margin account or deposits of cash (usually sales
proceeds) occur.
9. Regulations G, T, and U of the Federal Reserve Board of Governors,
prescribed in accordance with the Securities Exchange Act of 1934, limit the
amount of credit to purchase and carry margin stocks that may be extended on
securities as collateral by prescribing a maximum loan value, which is a specified
percentage of the market value of the collateral at the time the credit is extended.
Margin requirements are the difference between the market value (100 percent)
and the maximum loan value. The term "margin stocks" is defined in the
corresponding regulation.
A26
1.37
DomesticNonfinancialStatistics • May 1987
SELECTED FINANCIAL INSTITUTIONS
Selected Assets and Liabilities
Millions of dollars, end of period
1987
1986
1984
Account
1985
Mar.
Apr.
June
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Savings and loan associations
1 Assets
903,488
948,781
947,302
954,869
963,274
954,226
957,952
965,035
957,303
961,939
964,198
963,163
2 Mortgages
555,277
574,732
99,332
131,464
241,104
575,177
103,415
132,351
247,339
574,992
108,324
134,881
253,400
565,037
113,158
130,877
258,310
565,353
113,099
132,791
259,806
566,438
113,619
138,864
259,731
557,137
117,675
138,552
261,613
557,303
121,238
138,532
266,101
556,780
122,420
141,504
265,914
553,552
122,847
142,841
266,769
4 Cash and investment securities .
5 Other
124,801
223,396
585,462
109,303
126,712
238,833
6 Liabilities and net worth
903,488
948,781
947,302
954,869
963,274
954,226
957,952
965,035
957,303
961,939
964,198
963,163
725,045
125,666
64,207
61,459
17,944
750,071
138,798
73,888
64,910
19,045
752,056
133,407
70,464
62,943
20,078
750,299
140,427
73,815
66,612
21,978
751,138
145,032
73,520
71,512
24,722
744,026
148,054
73,553
74,501
20,792
747,020
146,578
75,058
71,520
22,782
749,020
148,535
75,594
72,941
24,703
743,517
155,735
80,364
75,371
15,463
742,682
152,626
75,295
77,331
23,264
740,095
156,8%
75,626
81,270
24,097
740,920
156,814
80,129
76,685
20,557
34,833
41,064
41,760
42,163
42,382
41,353
41,571
42,776
42,588
43,365
43,110
42,871
61,305
56,051
54,366
55,818
57,997
57,200
55,687
53,180
51,163
49,887
48,222
41,650
1
7 Savings capital
8 Borrowed money
9
FHLBB
10
Other
11 Other
12 Net worth 2
n.a.
MEMO
13 Mortgage loan commitments
outstanding 3
FSLIC-insured federal savings banks
14 Assets
98,559
131,868
152,823
155,686
164,129
180,124
15 Mortgages
16 Mortgage-backed s e c u r i t i e s . . . .
17 Other
57,429
9,949
10,971
72,355
15,676
11,723
85,028
17,851
13,923
86,598
18,661
14,590
89,108
19,829
15,083
99,758
21,598
16,774
18 Liabilities and net worth
98,559
131,868
152,823
155,686
164,129
19
20
21
22
23
24
79,572
12,798
7,515
5,283
1,903
4,286
103,462
19,323
10,510
8,813
2,732
6,351
119,434
22,747
12,064
10,683
3,291
7,349
121,133
23,196
12,476
10,720
3,758
7,599
126,123
25,686
12,830
12,856
4,338
7,982
3,234
5,355
8,330
8,287
8,762
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
183,317
186,810
196,224'
202,111'
204,925'
211,629'
101,758r
23,247
17,027'
103,019'
24,097
17,056
108,217
26,440
18,488'
110,829'
27,516
18,697'
112,12(K
28,324'
19,268'
113,563'
29,868'
20,140'
180,124
183,317
186,810
196,224'
202,111'
204,925'
211,629'
138,168
28,502
15,301
13,201
4,279
9,175
140,610
28,722
15,866
12,856
4,564
9,422
142,858
29,390
16,123
13,267
4,914
9,647
149,074
32,319
16,853
15,466
4,666'
10,163
152,834'
33,430
17.382
16,048
5,330'
10,517'
154,447
33,937
17,863
16,074
5,652
10,889'
157,868'
37,079
19,897
17,432'
5,260'
11,172'
9,410
10,134
9,770
10,221
9,356
9,947'
8,684'
n a.
MEMO
25 Mortgage loan commitments
outstanding 3
Savings banks
26 Assets
203,898
216,776
221,256
222,542
226,495
223,367
224,569
227,011
228,854
230,919
232,577
236,374
102,895
24,954
110,448
30,876
110,271
34,873
111,813
34,591
112,417
35,500
110,958
36,692
111,971
36,421
113,265
37,350
114,188
37,298
116,648
36,130
117,612
36,149
118,792
35,005
14,643
19,215
2,077
23,747
4,954
11,413
13,111
19,481
2,323
21,199
6,225
13,113
12,313
21,593
2,306
20,403
5,845
13,652
12,013
21,885
2,372
20,439
5,570
13,859
13,210
22,546
2,343
20,260
6,225
13,994
12,115
22,413
2,281
2,036
5,301
13,244
12,297
22,954
2,309
20,862
4,651
13,104
12,043
21,161
2,400
20,602
5,018
13,172
12,357
23,216
2,407
20,902
4,811
13,675
12,585
23,437
2,347
21,156
5,195
13,421
13,037
24,051
2,290
20,749
5,052
13,637
14,166
25,250
2,174
20,314
6,487
13,826
35 Liabilities
203,898
216,776
221,256
222,542
226,495
223,367
224,569
227,011
228,854
230,919
232,577
236,374
36 Deposits
37
Regular 4
38
Ordinary savings
39
Time
40
Other
41 Other liabilities
42 General reserve accounts
180,616
177,418
33,739
104,732
3,198
12,504
10,510
185,972
181,921
33,018
103,311
4,051
17,414
12,823
188,960
184,704
33,021
105,562
4,256
18,412
13,548
189,025
184,580
33,057
105,550
4,445
19,074
14,114
190,310
185,716
33,577
105,146
4,594
21,384
14,519
189,109
183,970
34,008
103,083
5,139
19,226
14,731
188,615
183,433
34,166
102,374
5,182
20,641
15,084
189,937
184,764
34,530
102,668
5,173
21,360
15,427
190,210
185,002
35,227
102,191
5,208
21,947
16,319
190,334
185,254
36,165
101,125
5,080
23,319
16,896
190,858
185,958
36,739
101,240'
4,900
24,254
17,146
192,101
186.311
37,655
100,847
5,790
24,992
17,988
27
28
79
30
31
37
33
34
Loans
Mortgage
Other
Securities
U.S. government
Mortgage-backed securities...
State and local government...
Corporate and other
Cash
Other assets
n a.
Financial Markets
All
1.37—Continued
1986
Account
1984
1987
1985
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Credit unions'
43 Total assets/liabilities and capital .
93,036
118,010
126,653
128,229
132,415
134,703
137,901
139,233
140,496
143,662
145,653
147,726
44
45
63,205
29,831
77,861
40,149
82,275
44,378
83,543
44,686
86,289
46,126
87,579
47,124
89,539
48,362
90,367
48,866
91,981
48,515
93,257
50,405
94,638
51,015
95,483
52,243
62,561
42,337
20,224
84,348
57,539
26,809
73,513
47,933
25,580
105,963
70,926
35,037
75,300
48,633
26,667
114,579
75,698
38,881
76,385
49,756
26,629
116,703
77,112
39,591
76,774
49,950
26,824
120,331
79,479
40,852
77,847
50,613
27,234
122,952
80,975
41,977
79,647
51,331
28,316
125,331
82,596
42,735
80,656
52,007
28,649
126,268
83,132
43,136
81,820
53,042
28,778
128,125
84,607
43,518
83,388
53,434
29,954
130,483
86,158
44,325
84,635
53,877
30,758
131,778
87,009
44,769
86,137
55,304
30,833
134,327
87,954
46,373
n a.
910,691
n.a.
n a.
Federal
State
46 Loans outstanding
47
Federal
48
State
49 Savings
50
Federal
51
State
Life insurance companies
52 Assets
53
54
55
56
57
58
59
60
61
62
63
Securities
Government
United States 6
State and local
Foreign 7
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
825,901
848,535
855,605
863,610
872,359
877,919
887,255
892,304
860,682'
63,899
75,230
42,204
51,700
9,708
8,713
13,822
12,982
359,333 423,712
295,998 346,216
63,335
77,496
156,699 171,797
25,767
28,822
54,505
54,369
63,776
71,971
77,965
54,289
9,674
14,002
440,963
357,196
83,767
174,823
29,804
54,273
57,753
78,494
54,705
9,869
13,920
445,573
361,306
84,267
175,951
30,059
54,272
57,492
79,051
55,120
9,930
14,001
450,279
364,122
86,157
177,554
30,025
54,351
57,802
78,284
54,197
10,114
13,973
455,119
367,966
87,153
180,041
30,350
57,342
58,290
78,722
54,321
10,350
14,051
455,013
369,704
85,309
182,542
31,151
54,249
58,792
79,188
54,487
10,472
14,229
463,135
374,670
88,465
183,943
31,844
54,247
57,905
81,636
56,698'
10,606
14,332
462,540
378,267
84,273
185,268
31,725
54,273
58,086
84,858
82,047'
57,511'
59,802
10,712
10,212'
14,344
14,324'
467,433' 473,860
381,381' 386,293
87,567
86,052'
186,976' 189,460
32,184
31,918'
54,152
54,199'
58,006
58,256'
722,979
1. Holdings of stock of the Federal Home Loan Banks are in "other assets."
2. Includes net undistributed income accrued by most associations.
3. As of July 1985, data include loans in process.
4. Excludes checking, club, and school accounts.
5. Data include all federally insured credit unions, both federal and state
chartered, serving natural persons.
6. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
7. Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
NOTE. Savings and loan associations:
Estimates by the F H L B B for all
associations in the United States based on annual benchmarks for non-FSLICinsured associations and the experience of FSLIC-insured associations.
FSLIC-insured federal savings banks: Estimates by the F H L B B for federal
savings banks insured by the FSLIC and based on monthly reports of federally
insured institutions.
Savings banks: Estimates by the National Council of Savings Institutions for all
savings banks in the United States and for FDIC-insured savings banks that have
converted to federal savings banks.
Credit unions: Estimates by the National Credit Union Administration for
federally chartered and federally insured state-chartered credit unions serving
natural persons.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for
differences between market and book values are not made on each item separately
but are included, in total, in "other assets."
A28
1.38
DomesticNonfinancialStatistics • May 1987
FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
Fiscal
year
1984
Fiscal
year
1985
Fiscal
year
1986
1986
Sept.
U.S. budget1
1 Receipts, total
2
On-budget
3
Off-budget
4 Outlays, total
5
On-budget
6
Off-budget
7 Surplus, or deficit ( - ) , total
8
On-budget
9
Off-budget
Source of financing (total)
Borrowing from the public
Cash and monetary assets (decrease, or
increase ( - ) ) 2
12
Other 3
10
11
666,457
500,382
166,075
851,781'
685,968
165,813
-185,324'
-185,586
262
734,057
547,886
186,171'
946,316'
769,509'
176,807
-212.26C
-221,623'
9,363
769,091
568,862
200,228
989,815'
806,318'
183,498
-220,725'
-237,455'
16,371
78,013
59,978
18,035
81,750
65,614
16,136
-3,737
-5,636
1,898
1987
Oct.
Nov.
Dec.
59,012
43,865
15,147
84,267
68,780
15,486
-25,255
-24,915
-340
52,967
38,158
14,809
79,973
63,639
16,334
-27,006
-25,481
-1,524
78,035
60,694
17,341
90,112
75,623
14,489
-12,077
-14,930
2,853
Jan.
81,771
62,981
18,790
83,942
68,176
15,766
-2,170
-5,195
3,024
Feb.
55,463
37,919
17,544
83,828
67,138
16,690
-28,366
-29,219
854
236,284'
22,188
5,936
40,352
22,824
4,353
15,248
6,631'
7,875'
13,367'
1,63C
-14,324'
-1,235'
-21,313
2,862
18,131
1,188
-2,721
-10,625
-14,751
4,004
-9,564
7,381
16,574
-3,456
30,426'
8,514'
21,913'
17,060
4,174
12,886
31,384
7,514
23,870
31,384
7,514
23,870
13,616
2,491
11,126
17,007
2,529
14,478
30,945
7,588
23,357
41,307
15,746
25,561
24,816
3,482
21,334
170,817
197,269
MEMO
13 Treasury operating balance (level, end of
period)
14
Federal Reserve Banks
15
Tax and loan accounts
1. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985, all former off-budget entries are now presented on-budget. The Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the FFB to finance their programs. The act has also moved two
social security trust funds (Federal old-age survivors insurance and Federal
disability insurance trust funds) off-budget.
2. Includes U.S. Treasury operating cash accounts; SDRs; reserve position on
the U.S. quota in the IMF; loans to International Monetary Fund; and other cash
and monetary assets.
3. Includes accrued interest payable to the public; allocations of special
drawing rights; deposit funds; miscellaneous liability (including checks outstanding) and asset accounts; seigniorage; increment on gold; net gain/loss for U . S .
currency valuation adjustment; net gain/loss for IMF valuation adjustment; and
profit on the sale of gold.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government" and the Budget of the U.S.
Government.
Federal Finance
1.39
A29
U.S. BUDGET RECEIPTS AND OUTLAYS
Millions of dollars
Calendar year
Source or type
Fiscal
year
1985
Fiscal
year
1986
1987
1986
1986
1985
HI
H2
HI
H2
Jan.
Dec.
Feb.
RECEIPTS
1 All sources
7 Individual income taxes, net
3
Withheld
Presidential Election Campaign Fund . . .
4
5
Nonwithheld
Refunds
6
Corporation income taxes
7
Gross receipts
8
Refunds
9 Social insurance taxes and contributions,
net
Employment taxes and
10
contributions 1
Self-employment taxes and
11
contributions 2
Unemployment insurance
1?
Other net receipts 3
13
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 4
734,057
769,091
380,618
364,790
394,345
387,524
78,035
81,771
55,463
334,531
298,941
35
101,328
65,743
348,959
314,838
36
105,994
71,873
166,783
149,288
29
76,155
58,684
169,987
155,725
6
22,295
8,038
169,444
153,919
31
78,981
63,488
183,156
164,071
4
27,733
8,652
33,584
30,733
0
3,585
734
46,466
26,375
0
20,254
163
22,805
25,486
2
1,320
4,003
77,413
16,082
80,442
17,298
42,193
8,370
36,528
7,751
41,946
9,557
42,108
8,230
16,531
839
4,332
872
2,369
1,433
265,163
283,901
144,598
128,017
156,714
134,006
22,267
25,664
25,590
234,646
255,062
126,038
116,276
139,706
122,246
21,625
24,266
22,594
10,468
25,758
4,759
11,840
24,098
4,742
9,482
16,213
2,350
985
9,281
2,458
10,581
14,674
2,333
1,338
9,328
2,429
0
196
446
795
1,024
375
809
2,633
364
35,992
12,079
6,422
18,539
32,919
13,323
6,958
19,887
17,259
5,807
3,204
9,144
18,470
6,354
3,323
9,861
15,944
6,369
3,487
10,002
15,947
7,282
3,649
9,605
3,003
1,098
695
1,696
2,840
1,135
652
1,554
2,291
1,052
553
2,235
OUTLAYS
946,223
989,789
463,842
487,188
486,037
504,785
89,158
83,942
83,828
19
70
71
77
73
24
National defense
International affairs
General science, space, and technology . . .
Energy
Natural resources and environment
Agriculture
252,748
16,176
8,627
5,685
13,357
25,565
273,369
14,471
9,017
4,792
13,508
31,169
124,186
6,675
4,230
680
5,892
11,705
134,675
8,367
4,727
3,305
7,553
15,412
135,367
5,384
12,519
2,484
6,245
14,482
138,544
8,876
4,594
2,735
7,141
16,160
24,401
1,140
843
485
1,253
3,751
22,057
358
562
390
1,003
4,063
23,475
1,319
791
189
871
2,293
75
76
27
78
Commerce and housing credit
Transportation
Community and regional development . . . .
Education, training, employment, social
services
4,229
25,838
7,680
4,258
28,058
7,510
-260
11,440
3,408
644
15,360
3,901
860
12,658
3,169
3,647
14,745
3,494
-314
2,409
548
717
1,870
477
-334
1,697
380
18 All types
29,342
29,662
14,149
14,481
14,712
15,268
2,896
2,358
2,669
79 Health
30 Social security and medicare
31 Income security
33,542
254,446
128,200
35,936
190,850
120,686
16,945
128,351
65,246
17,237
129,037
59,457
17,872
135,214
60,786
19,814
138,296
59,628
3,032
23,378
11,625
3,148
22,640
11,301
3,166
23,081
10,551
37
33
34
35
36
37
26,352
6,277
5,228
6,353
129,436
-32,759
26,614
6,555
6,796
6,430
135,284
-33,244
11,956
3,016
2,857
2,659
65,143
-14,436
14,527
3,212
3,634
3,391
67,448
-17,953
12,193
3,352
3,566
2,179
68,054
-17,193
14,497
3,360
2,786
2,767
65,816
-17,426
3,641
684
895
226
10,958
-2,694
2,227
482
166
-21
12,583
-2,440
2,053
619
631
120
12,967
-2,708
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Net interest'
Undistributed offsetting receipts 6
1. Old-age, disability, and hospital insurance, and railroad retirement accounts.
2. Old-age, disability, and hospital insurance.
3. Federal employee retirement contributions and civil service retirement and
disability fund.
4. Deposits of earnings by Federal Reserve Banks and other miscellaneous
receipts.
5. Net interest function includes interest received by trust funds.
6. Consists of rents and royalties on the outer continental shelf and U.S.
government contributions for employee retirement.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government," and the Budget of the U.S. Government, Fiscal Year 1988.
A30
1.40
DomesticNonfinancialStatistics • May 1987
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1985
1984
1986
Item
Sept. 30
Mar. 31
Dec. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
1,667.4
1,715.1
1,779.0
1,827.5
1,950.3
1,991.1
2,063.6
2,129.5
1,572.3
1,309.2
263.1
1,663.0
1,373.4
289.6
1,710.7
1,415.2
295.5
1,774.6
1,460.5
314.2
1,823.1
1,506.6
316.5
1,945.9
1,597.1
348.9
1,986.8
1,634.3
352.6
2,059.3
1,684.9
374.4
2,125.3
1,742.4
382.9
4.5
3.4
1.1
4.5
3.4
1.1
4.4
3.3
1.1
4.4
3.3
1.1
4.4
3.3
1.1
4.4
3.3
1.1
4.3
3.2
1.1
4.3
3.2
1.1
4.2
3.2
1.1
1,573.0
1,663.7
1,711.4
1,775.3
1,823.8
1,932.4
1,973.3
2,060.0
2,111.0
9 Public debt securities
10 Other debt 1
1,571.7
1.3
1,662.4
1.3
1,710.1
1.3
1,774.0
1.3
1,822.5
1.3
1,931.1
1.3
1,972.0
1.3
2,058.7
1.3
2,109.7
1.3
11 MEMO: Statutory debt limit
1,573.0
1,823.8
1,823.8
1,823.8
1,823.8
2,078.7
2,078.7
2,078.7
2,111.0
1 Federal debt outstanding
2 Public debt securities
3
Held by public
4
Held by agencies
5 Agency securities
6
Held by public
7
Held by agencies
8 Debt subject to statutory limit
1,576.7
1. Includes guaranteed debt of government agencies, specified participation
certificates, notes to international lending organizations, and District of Columbia
stadium bonds.
1.41
GROSS PUBLIC DEBT OF U.S. TREASURY
NOTE. Data from Treasury
Treasury Department),
Bulletin
and Daily
Treasury
Statement
(U.S.
Types and Ownership
Billions of dollars, end of period
1985
Type and holder
1984
1983
1982
1986
1985
Q4
1 Total gross public debt
?.
3
4
5
6
7
8
9
10
11
12
13
By type
Interest-bearing debt
Marketable
Bills
Notes
Bonds
Nonmarketable 1
State and local government series
Foreign issues 2
Government
Public
Savings bonds and notes
Government account series 3
14 Non-interest-bearing debt
15
16
17
18
19
20
21
22
23
74
25
26
By holder*
U.S. government agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
Money market funds
Insurance companies
Other companies
State and local governments
Individuals
Savings bonds
Other securities
Foreign and international 5
Other miscellaneous investors 6
Q2
Q3
1,197.1
1,410.7
1,663.0
1,945.9
1,945.9
1,986.8
2,059.3
2,125.3
1,195.5
881.5
311.8
465.0
104.6
314.0
25.7
14.7
13.0
1.7
68.0
205.4
1,400.9
1,050.9
343.8
573.4
133.7
350.0
36.7
10.4
10.4
.0
70.7
231.9
1,660.6
1,247.4
374.4
705.1
167.9
413.2
44.4
9.1
9.1
.0
73.1
286.2
1,943.4
1,437.7
399.9
812.5
211.1
505.7
87.5
7.5
7.5
.0
78.1
332.2
1,943.4
1,437.7
399.9
812.5
211.1
505.7
87.5
7.5
7.5
.0
78.1
332.2
1,984.2
1,472.8
393.2
842.5
223.0
511.4
88.5
6.7
6.7
.0
79.8
336.0
2,056.7
1,498.2
396.9
869.3
232.3
558.5
98.2
5.3
5.3
.0
82.3
372.3
2,122.7
1,564.3
410.7
896.9
241.7
558.4
102.4
4.1
4.1
.0
85.6
365.9
1.6
9.8
2.3
2.5
2.5
2.6
2.6
.4
209.4
139.3
848.4
131.4
42.6
39.1
24.5
127.8
236.3
151.9
1,022.6
188.8
22.8
56.7
39.7
155.1
289.6
160.9
1,212.5
183.4
25.9
76.4
50.1
179.4
348.9
181.3
1,417.2
192.2
25.1
93.2
59.0
n.a.
348.9
181.3
1,417.2
192.2
25.1
93.2
59.0
n.a.
352.6
184.8
1,473.1
195.1
29.9
95.8
59.6
n.a.
374.4
183.8
1,502.7
197.2
22.8
n.a.
59.8
n.a.
382.9
190.8
1,553.3
212.5
24.9
n.a.
67.0
n.a.
68.3
48.2
149.5
217.0
71.5
61.9
166.3
259.8
74.5
69.3
192.9
360.6
79.8
75.0
214.6
n.a.
79.8
75.0
214.6
n.a.
81.4
76.2
225.4
n.a.
83.8
73.9
239.8
n.a.
87.1
69.0
256.3
n.a.
1. Includes (not shown separately): Securities issued to the Rural Electrification Administration; depository bonds, retirement plan bonds, and individual
retirement bonds.
2. Nonmarketable dollar-denominated and foreign currency-denominated series held by foreigners.
3. Held almost entirely by U.S. government agencies and trust funds.
4. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.
Q1
5. Consists of investments offoreign and international accounts. Excludes noninterest-bearing notes issued to the International Monetary Fund.
6. Includes savings and loan associations, nonprofit institutions, credit unions,
mutual savings banks, corporate pension trust funds, dealers and brokers, certain
U.S. government deposit accounts, and U.S. government-sponsored agencies.
SOURCES. Data by type of security, U.S. Treasury Department, Monthly
Statement of the Public Debt of the United States; data by holder. Treasury
Bulletin.
Federal Finance
1.42
U.S. GOVERNMENT SECURITIES DEALERS
A31
Transactions'
Par value; averages of daily figures, in millions of dollars
1986
Item
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Immediate delivery 2
U.S. government securities
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
By type of customer
U.S. government securities
dealers
U.S. government securities
brokers
All others 3
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures transactions 4
Treasury bills
Treasury coupons
Federal agency securities
Forward transactions 5
U.S. government securities
Federal agency securities
1984
1985
1987
Dec.
Jan/
Feb.
Jan. 21
Jan. 28
Feb. 4
Feb. 11
Feb. 18
Feb. 25
52,778
75,331
95,422
88,650
112,317
124,519
117,570
107,280
116,597
123,689
124,336
135,383
26,035
1,305
11,733
7,606
6,099
32,900
1,811
18,361
12,703
9,556
34,249
2,116
24,664
20,435
13,959
33,166
2,353
22,022
19,383
11,726
45,127
3,013
24,698
23,967
15,512
48,972
2,815
30,231
24,326
18,174
49,542
2,588
27,596
22,851
14,992
38,226
2,484
24,063
25,443
17,065
46,002
3,485
29,176
23,809
14,125
46,166
2,755
28,925
25,983
19,861
55,324
2,635
30,459
18,301
17,618
53,627
2,639
33,226
25,662
20,228
2,919
3,336
3,646
3,269
3,437
4,082
4,490
2,991
4,715
3,286
4,495
3.703
25,580
24,278
7,846
4,947
3,243
10,018
36,222
35,773
11,640
4,016
3,242
12,717
49,355
42,205
16,726
4,352
3,273
16,645
44,050
40,783
20,159
3,676
2,529
16,516
59,844
48,338
21,416
6,105
3,390
19,339
67,913
51,853
22,764
4,750
3,272
16,513
61,034
52,045
26,100
5,999
3,366
20,212
59,714
44,574
26,124
6,934
2,795
17,173
63,594
48,287
18,175
5,216
3,421
18,618
70,388
50,014
18,837
4,914
2,736
14,331
69,404
50,437
24,297
5,160
3,413
17,114
72,620
59,059
29,892
4,830
3,721
16,691
6,947
4,503
262
5,561
6,069
240
3,311
7,170
12
1,909
5,519
0
2,879
7,029
0
4,898
8,092
0
2,851
6,982
0
3,070
7,324
0
4,076
5,885
0
2,923
9,625
0
3,830
7,175
0
8,005
8,266
0
1,364
2,843
1,283
3,857
1,873
7,823
2,066
9,933
2,055
10,696
4,074
11,440
2,862
15,903
1,927
9,896
3,621
7,558
7,289
12,155
2,254
14,374
3,405
11,582
1. Transactions are market purchases and sales of securities as reported to the
Federal Reserve Bank of N e w York by the U.S. government securities dealers on
its published list of primary dealers.
Averages for transactions are based on the number of trading days in the period.
The figures exclude allotments of, and exchanges for, new U.S. government
securities, redemptions of called or matured securities, purchases or sales of
securities under repurchase agreement, reverse repurchase (resale), or similar
contracts.
2. Data for immediate transactions do not include forward transactions.
3. Includes, among others, all other dealers and brokers in commodities and
1987
1986
securities, nondealer departments of commercial banks, foreign banking agencies,
and the Federal Reserve System.
4. Futures contracts are standardized agreements arranged on an organized
exchange in which parties commit to purchase or sell securities for delivery at a
future date.
5. Forward transactions are agreements arranged in the over-the-counter
market in which securities are purchased (sold) for delivery after 5 business days
from the date of the transaction for government securities (Treasury bills, notes,
and bonds) or after 30 days for mortgage-backed agency issues.
NOTE. Data for the period May 1 to Sept. 30, 1986, are partially estimated.
A32
1.43
DomesticNonfinancialStatistics • May 1987
U.S. GOVERNMENT SECURITIES DEALERS
Positions and Financing1
Averages of daily figures, in millions of dollars
1986
1987
Dec.
Jan.
1987
Feb.
Jan. 28
Feb. 4
Feb. 11
Feb. 18
Feb. 25
Positions
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Net immediate 2
U.S. government securities
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures positions
Treasury bills
Treasury coupons
Federal agency securities
Forward positions
U.S. government securities
Federal agency securities
5,429
5,500
63
2,159
-1,119
-1,174
15,294
7,369
3,874
3,788
7,391
10,075
1,050
5,154
-6,202
-2,686
22,860
9,192
4,586
5,570
13,049
12,726
3,698
9,297
-9,504
-3,169
33,075
10,533
5,533
8,087
10,219
10,979
2,969
6,815
-6,977
-3,567
34,694
10,049
5,072
9,789
13,180'
13,384'
3,462'
9,209'
-7,180'
-5,695'
31,255'
9,439
4,756
9,973
6,080
7,387
3,709
7,399
-5,890
-6,526
32,065
9,668
4,934
9,215
15,400
13,895
3,803
11,940
-7,983
-6,255
31,730
9,795
5,370
10,906
5,640
8,634
4,121
9,151
-8,351
-7,914
29,526
10,159
5,278
11,335
1,813
5,064
4,329
8,231
-8,626
-7,186
31,926
9,727
4,740
9,603
3,884
7,253
3,439
4,952
-5,666
-6,094
33,959
10,090
5,396
8,088
8,315
8,224
3,234
6,028
-3,532
-5,639
32,223
9,516
4,862
8,639
-4,525
1,794
233
-7,322
4,465
-722
-18,063
3,493
-153
-16,170
3,359
-89
-15,293
5,229'
-92
-13,483
6,669
-94
-14,340
6,393
-93
-13,814
7,362
-93
-13,073
7,065
-93
-12,349
6,958
-94
-13,861
6,376
-95
-1,643
-9,205
-911
-9,420
-2,303
-11,920
-2,101
-17,058
183
-16,648'
357
-16,439
2,434
-16,036
968
-15,545
1,874
-18,975
838
-18,585
-356
-13,833
Financing 3
Reverse repurchase agreements 4
Overnight and continuing
Term agreements
Repurchase agreements 5
Overnight and continuing
18
Term agreements
19
16
17
44,078
68,357
68,035
80,509
98,954
108,693
109,241
123,297
131,592
126,179
128,668
132,531
140,251
130,895
126,044
137,017
128,948
148,624
131,738
122,442
125,240
126,149
75,717
57,047
101,410
70,076
141,735
102,640
149,315
120,500
175,858
115,452
174,370
115,522
188,496
119,064
170,746
119,890
170,489
131,038
176,452
105,108
174,867
109,751
1. Data for dealer positions and sources of financing are obtained from reports
submitted to the Federal Reserve Bank of N e w York by the U.S. government
securities dealers on its published list of primary dealers.
Data for positions are averages of daily figures, in terms of par value, based on
the number of trading days in the period. Positions are net amounts and are shown
on a commitment basis. Data for financing are in terms of actual amounts
borrowed or lent and are based on Wednesday figures.
2. Immediate positions are net amounts (in terms of par values) of securities
owned by nonbank dealer firms and dealer departments of commercial banks on a
commitment, that is, trade-date basis, including any such securities that have
been sold under agreements to repurchase (RPs). The maturities of some
repurchase agreements are sufficiently long, however, to suggest that the securities involved are not available for trading purposes. Immediate positions include
reverses to maturity, which are securities that were sold after having been
obtained under reverse repurchase agreements that mature on the same day as the
securities. Data for immediate positions do not include forward positions.
3. Figures cover financing involving U.S. government and federal agency
securities, negotiable CDs, bankers acceptances, and commercial paper.
4. Includes all reverse repurchase agreements, including those that have been
arranged to make delivery on short sales and those for which the securities
obtained have been used as collateral on borrowings, that is, matched agreements.
5. Includes both repurchase agreements undertaken to finance positions and
"matched book" repurchase agreements.
NOTE. Data on positions for the period May 1 to Sept. 30, 1986, are partially
estimated.
Federal Finance
1.44
FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
A33
Debt Outstanding
Millions of dollars, end of period
1986
1983
Agency
1984
Aug.
1 Federal and federally sponsored agencies
2 Federal agencies
3
Defense Department 1
4
Export-Import Bank 2 3
5
Federal Housing Administration 4
6
Government National Mortgage Association
participation certificates 5
7
Postal Service 6
8
Tennessee Valley Authority
9
United States Railway Association 6
10 Federally sponsored agencies 7
11
Federal Home Loan Banks
12
Federal Home Loan Mortgage Corporation
13' Federal National Mortgage Association
14
Farm Credit Banks
15
Student Loan Marketing Association 8
1987
1985
Sept.
Oct.
305,199'
Nov.
305,097
Dec.
240,068
271,220
293,905
299,211
302,411
33,940
243
14,853
194
35,145
142
15,882
133
36,390
71
15,678
115
36,132
40
14,953
115
36,473
37
14,274
117
36,716
36
14,274
123
36,952
35
14,274
124
36,958
33
14,211
138
2,165
1,404
14,970
111
2,165
1,337
15,435
51
2,165
1,940
16,347
74
2,165
1,854
16,931
74
2,165
3,104
16,702
74
2,165
3,104
16,940
74
2,165
3,104
17,176
74
2,165
3,104
17,222
85
206,128
48,930
6,793
74,594
72,816
3,402
236,075
65,085
10,270
83,720
71,193
5,745
257,515
74,447
11,926
93,896
68,851
8,395
263,079
85,997
12,801
92,286
61,575
10,420
265,938
87,133
13,548
91,629
63,073
10,555
268,483'
87,146
14,007
93,272
63,079
10,979'
268,145
86,891
13,606
93,477
62,693
11,478
n.a.
88,752
n.a.
93,563
62,328
12,171
135,791
145,217
153,373
156,132
156,873
157,371
157,452
157,510
14,789
1,154
5,000
13,245
111
15,852
1,087
5,000
13,710
51
15,670
1,690
5,000
14,622
74
14,947
1,604
5,000
15,306
74
14,268
2,854
4,970
15,077
74
14,268
2,854
4,970
15,515
74
14,268
2,854
4,970
15,751
74
14,205
2,854
4,970
15,797
85
55,266
19,766
26,460
58,971
20,693
29,853
64,234
20,654
31,429
65,274
21,398
32,529
65,374
21,460
32,796
65,374
21,506
32,810
65,374
21,531
32,630
65,374
21,680
32,545
Jan.
n.a.
n.a.
n a.
n a.
92,588
59,984
11,784
MEMO
16 Federal Financing Bank debt
Lending to federal
17
18
19
20
21
and federally
sponsored
Export-Import Bank 3
Postal Service 6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association 6
Other Lending10
22 Farmers Home Administration
23 Rural Electrification Administration
24 Other
1. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
5. Certificates of participation issued before fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing
and Urban Development; Small Business Administration; and the Veterans
Administration.
6. Off-budget.
n a.
7. Includes outstanding noncontingent liabilities; Notes, bonds, and debentures. Some data are estimated.
8. Before late 1981, the Association obtained financing through the Federal
Financing Bank.
9. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since FFB
incurs debt solely for the purpose of lending to other agencies, its debt is not
included in the main portion of the table in order to avoid double counting.
10. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any
particular agency being generally small. The Farmers Home Administration item
consists exclusively of agency assets, while the Rural Electrification Administration entry contains both agency assets and guaranteed loans.
A34
1.45
DomesticNonfinancialStatistics • May 1987
NEW SECURITY ISSUES Tax-Exempt State and LocaJ Governments
Millions of dollars
1986
Type of issue or issuer,
or use
1984'
1 All issues, new and refunding 1
1985'
1987
1986
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
106,641
214,189
134,606
19,833
25,965
4,532
8,825
10,085
14,082
6,829
7,955
Type of issue
2 General obligation
3 Revenue
26,485
80,156
52,622
161,567
44,801
89,806
6,531
13,302
5,931
20,034
1,267
3,265
2,104
6,721
1,427
8,658
4,254
9,828
960
5,869
3,198
4,757
Type of issuer
4 State
5 Special district and statutory authority 2
6 Municipalities, counties, townships
9,129
63,550
33,962
13,004
134,363
66,822
14,935
79,291
40,374
2,879
10,589
6,365
2,121
15,714
8,125
9
3,275
1,248
697
5,757
2,371
111
7,761
2,213
961
9,414
3,707
153
5,044
1,632
1,287
5,191
1,477
7 Issues for new capital, total
94,050
156,050
79,195
13,165
17,810
2,558
3,789
4,085
8,831
2,556
3,026
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
7,553
7,552
17,844
29,928
15,415
15,758
16,658
12,070
26,852
63,181
12,892
24.398
16,948
11,666
35,383
17,332
5,594
47,433
2,800
3,164
4,425
1.186
975
7,281
2.926
1,460
6,292
2,554
489
12,245
558
827
1,365
812
138
832
928
1,195
2.396
2,098
499
1,708
1,486
976
3,239
2,635
331
1,418
1,588
588
2,330
3,944
2,159
3,473
823
146
2,574
1,670
101
1,515
1,211
603
2,720
857
52
2,512
8
9
10
11
12
13
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts beginning April 1986.
SOURCES. Securities Data Company beginning April 1986. Public Securities
Association for earlier data. This new data source began with the November
BULLETIN.
1.46
NEW SECURITY ISSUES Corporations
Millions of dollars
Type of issue or issuer,
or use
1986
1984
1985
1987
1986'
June
July
Aug.
Sept.
Oct.
Nov.
Dec.'
Jan.
1 All issues 1
132,531
201,269
294,220
25,776
21,093
24,245
16,093
28,582
28,867
25,043
22,354
2 Bonds 2
109,903
165,754
232,390
20,756
16,766
18,481
12,830
23,476
22,268
18,795
19,439
73,579
36,324
119,559
46,195
232,390
n.a.
20,756
n.a.
16,766
n.a.
18,481
n.a.
12,830
n.a.
23,476
n.a.
22,268
n.a.
18,795
n.a.
19,439
n.a.
24,607
13,726
4,694
10,679
2,997
53,199
52,228
15,140
5,743
12,957
10.456
69,232
52,848
19,221
4,262
25,585
13,430
117,048
5,368
2,056
250
1,948
810
10,324
2,535
3,409
497
1,470
465
8,390
4,536
1,045
550
2,098
1,615
8,638
2,345
1,405
375
1,915
417
6,373
2,055
1,067
170
2,537
1,255
16,392
3,378
1,213
0
2,587
1,158
13,933
3,276
2,067
70
2,498
776
10,109
3,901
1,074
0
1.340
65
13,059
11 Stocks 3
22,628
35,515
61,830
5,020
4,327
5,764
3,263
5,106
6,599
6,248
2,915
Type
12 Preferred
13 Common
4,118
18,510
6,505
29,010
11,514
50,316
1,284
3,736
726
3,601
1,290
4,474
402
2,861
817
4,289
1,390
5,209
1,293
4,955
429
2,486
4,054
6,277
589
1,624
419
9,665
5,700
9,149
1,544
1,966
978
16,178
14,234
9,252
2,392
3,791
1,504
30,657
1,132
421
154
406
140
2,767
746
917
179
305
107
2,073
982
803
57
208
379
3,335
250
1,009
28
174
0
1,802
570
1,271
511
410
59
2,285
2,565
535
15
218
104
3,162
1,781
709
183
873
101
2,601
365
148
0
237
16
2,149
Type of offering
3 Public
4 Private placement
5
6
7
8
9
10
14
15
16
17
18
19
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures, which represent gross proceeds of issues maturing in more than one
year, sold for cash in the United States, are principal amount or number of units
multiplied by offering price. Excludes offerings of less than $100,000, secondary
offerings, undefined or exempted issues as defined in the Securities Act of 1933,
employee stock plans, investment companies other than closed-end. intracorporate transactions, and sales to foreigners.
2. Monthly data include only public offerings.
3. Beginning in August 1981, gross stock offerings include new equity volume
from swaps of debt for equity.
SOURCES. IDD Information Services, Inc., Securities and Exchange Commission and the Board of Governors of the Federal Reserve System.
Securities Market and Corporate Finance
1.47
O P E N - E N D INVESTMENT COMPANIES
A35
Net Sales and Asset Position
M i l l i o n s o f dollars
1987
1986
Item
1985
1986'
June
July
Aug.
Sept.
Oct.
Nov.
Dec/
Jan.
INVESTMENT COMPANIES'
1 Sales of own shares 2
2 Redemptions of own shares'
3 Net sales
4
5
6
Assets 4
Cash position 5
Other
222,670
132,440
90,230
411,740
239,396
172,344
30,619
18,921
11,698
35,684
21,508
14,176
32,636
20,102
12,534
34,690
21,338
13,352
37,150
20,782
16,368
33,672
20,724
12,948
44,796
34,835
9,961
49,966
26,570
23,396
251,695
20,607
231,088
424,156
30,716
393,440
356,040
28,083
327,957
360,050
28,080
331,970
387,547
28,682
358,865
381,872
29,540
352,332
402,644
30,826
371,818
416,939
29,579
387,360
424,156
30,716
393,440
464,251
34,552
429,699
5. Also includes all U.S. government securities and other short-term debt
securities.
1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment of capital gains distributions and share issue of conversions from one fund to
another in the same group.
3. Excludes share redemption resulting from conversions from one fund to
another in the same group.
4. Market value at end of period, less current liabilities.
1.48
NOTE. Investment Company Institute data based on reports of members, which
comprise substantially all o p e n - e n d investment companies registered with the
Securities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.
CORPORATE PROFITS AND THEIR DISTRIBUTION
B i l l i o n s o f dollars; quarterly data are at s e a s o n a l l y a d j u s t e d annual rates.
1985'
Account
1984
1985
1986
1986
Q1
Q2
Q3
Q4
Ql
Q2
Q3
Q4
1 Corporate profits with inventory valuation and
capital consumption adjustment
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
6
264.7
235.7
95.4
140.3
78.3
62.0
280.6
223.1
91.8
131.4
81.6
49.8
300.5
237.3
103.4
133.9
87.8
46.1
266.4
213.8
87.8
126.0
80.9
45.1
274.3
213.8
87.1
126.7
81.4
45.3
296.3
229.2
95.8
133.4
81.6
51.8
285.6
235.8
96.4
139.4
82.5
57.0
296.4
222.5
95.7
126.9
85.2
41.7
293.1
227.7
99.0
128.8
87.5
41.2
302.0
240.4
104.4
135.9
88.8
47.2
310.4
258.8
114.6
144.2
89.7
54.5
7
8
-5.5
34.5
-.6
58.1
6.5
56.6
-.5
53.2
1.6
58.9
6.1
61.0
-9.4
59.2
16.5
57.3
10.6
54.8
6.1
55.5
-7.2
58.8
?
3
4
Inventory valuation
Capital consumption adjustment
SOURCE. Survey of Current Business (Department of Commerce).
A36
1.49
DomesticNonfinancialStatistics • May 1987
NONFINANCIAL CORPORATIONS
Assets and Liabilities
Billions of dollars, except for ratio
1985
1980
Account
1981
1982
1983
1986
1984
Ql
Q2
Q3
Q4
Ql
1,328.3
1,419.6
1,437.1
1,575.9
1,703.0
1,722.7
1,734.6
1,763.0
1,784.6
1,795.7
127.0
18.7
507.5
543.0
132.1
135.6
17.7
532.5
584.0
149.7
147.8
23.0
517.4
579.0
169.8
171.8
31.0
583.0
603.4
186.7
173.6
36.2
633.1
656.9
203.2
167.5
35.7
650.3
665.7
203.5
167.1
35.4
654.1
666.7
211.2
176.3
32.6
661.0
675.0
218.0
189.2
33.0
671.5
666.0
224.9
195.3
31.0
663.4
679.6
226.3
7 Current liabilities
890.6
971.3
986.0
1,059.6
1,163.6
1,174.1
1,182.9
1,211.9
1,233.6
1,222.3
8 Notes and accounts payable
9 Other
514.4
376.2
547.1
424.1
550.7
435.3
595.7
463.9
647.8
515.8
636.9
537.1
651.7
531.2
670.4
541.5
682.7
550.9
668.4
553.9
10 Net working capital
437.8
448.3
451.1
516.3
539.5
548.6
551.7
551.1
551.0
573.4
11 MEMO: Current ratio 1
1.492
1.462
1.458
1.487
1.464
1.467
1.466
1.455
1.447
1.469
1 Current assets
2
3
4
5
6
Cash
U.S. government securities
Notes and accounts receivable
Inventories
Other
Statistics, Board of Governors of the Federal Reserve System, Washington, D.C.
1. Ratio of total current assets to total current liabilities.
NOTE. For a description of this series, see "Working Capital of Nonfinancial
Corporations" in the July 1978 BULLETIN, pp. 533-37.
All data in this table reflect the most current benchmarks. Complete data are
available upon request from the Flow of Funds Section, Division of Research and
1.50
20551.
SOURCE. Federal Trade Commission and Bureau of the Census.
TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment A
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1985
Industry
1 Total nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5
Railroad
6
Air
7
Other
Public utilities
8
Electric
9
Gas and other
10 Commercial and other 2
1984
1985
1987
Q2
Q3
Q4
Ql
Q2
Q3
Q41
Ql'
354.44
387.13
380.69
387.86
389.23
397.88
377.94
375.92
374.55
394.34
386.82
66.24
72.58
73.27
80.21
69.%
74.81
74.34
79.91
72.99
81.48
75.47
82.79
68.01
76.02
68.33
73.35
69.31
69.89
74.17
80.00
67.86
73.36
16.86
15.88
11.24
16.56
15.89
15.25
12.99
11.22
10.15
10.62
10.36
6.79
3.56
6.17
7.08
4.79
6.15
6.72
6.04
5.87
7.38
3.71
6.35
7.79
5.17
5.85
6.74
6.07
6.34
6.22
6.58
5.42
6.77
5.77
5.74
7.31
5.69
6.03
6.60
6.12
6.30
6.37
7.22
6.26
37.03
10.44
134.75
36.11
12.71
150.93
33.96
12.57
159.50
36.00
12.61
150.99
35.58
12.86
151.62
36.38
13.41
155.42
34.21
12.82
155.67
33.81
12.74
158.18
33.91
11.99
160.25
33.91
12.72
163.91
33.34
12.97
169.08
ATrade and services are no longer being reported separately. They are included
in Commercial and other, line 10.
1. Anticipated by business.
1986
19861
2. "Other" consists of construction; wholesale and retail trade; finance and
insurance; personal and business services; and communication.
SOURCE. Survey of Current Business (Department of Commerce).
Securities Markets and Corporate Finance
1.51
DOMESTIC FINANCE COMPANIES
A37
Assets and Liabilities
Billions of dollars, end of period
1985'
Account
1982 R
1983'
1986'
1984'
Q2
Q3
Q4
Q2
QL
Q4
Q3
ASSETS
1
2
3
4
Accounts receivable, gross
Consumer
Business
Real estate
Total
5
6
Less:
Reserves for unearned income
Reserves for losses
7
8
9
75.3
100.4
18.7
194.3
83.3
113.4
20.5
217.3
89.9
137.8
23.8
251.5
97.9
147.3
25.9
271.1
108.6
143.7
26.3
278.6
113.4
158.3
28.9
300.6
117.2
165.9
29.9
312.9
125.1
167.7
30.8
323.6
137.1
161.0
32.1
330.2
136.6
174.2
33.6
344.4
29.9
3.3
30.3
3.7
33.8
4.2
35.7
4.5
38.0
4.6
39.2
4.9
40.0
5.0
40.7
5.1
42.4
5.4
41.5
5.8
Accounts receivable, net
All other
161.1
30.4
183.2
34.4
213.5
35.7
230.9
39.8
236.0
46.3
256.5
45.3
268.0
48.8
277.8
49.5
282.5
60.0
297.1
58.6
Total assets
191.5
217.6
249.2
270.7
282.3
301.9
316.8
327.2
342.5
355.7
16.5
51.4
18.3
60.5
20.0
73.1
18.7
82.2
18.9
93.2
21.1
99.2
20.0
104.3
22.2
108.4
24.7
112.8
30.3
117.7
11.9
63.7
21.6
26.4
11.1
67.7
31.2
28.9
12.9
77.2
34.5
31.5
12.7
85.0
38.7
33.4
12.4
85.5
38.2
34.1
12.5
92.5
41.0
35.7
13.4
99.9
42.4
36.7
15.3
102.0
41.1
38.1
16.0
105.3
44.2
39.4
17.2
106.3
44.7
39.5
191.5
217.6
249.2
270.7
282.3
301.9
316.8
327.2
342.5
355.7
Revised data will be available in the Board's forthcoming Annual
Digest.
Statistical
LIABILITIES
12
13
14
15
Bank loans
Commercial paper
Debt
Other short-term
Long-term
All other liabilities
Capital, surplus, and undivided profits
16
Total liabilities and capital
10
11
NOTE. Components may not add to totals because of rounding.
1.52
DOMESTIC FINANCE COMPANIES
Business Credit1
Millions of dollars, seasonally adjusted except as noted
Changes in accounts
receivable
Type
Accounts
receivable
outstanding
Jan. 3 1 ,
1986'
Extensions
1987
1986'
Repayments
1987
1986'
1987
19872
Nov.
1 Total
2
3
4
5
6
7
8
9
10
Retail financing of installment sales
Automotive (commercial vehicles)
Business, industrial, and farm equipment
Wholesale financing
Automotive
Equipment
All other
Leasing
Automotive
Equipment
Loans on commercial accounts receivable and factored commercial accounts receivable
All other business credit
Jan.
Nov.
Dec.
Jan.
Nov.
Dec.
Jan.
173,637
921
1,558
255
27,576
30,501
26,183
26,655
28,943
25,928
26,267
22,740
206
-96
-570
-100
184
-424
997
1,500
861
1,407
801
1,086
791
1,596
1,431
1,506
617
1,510
22,395
5,229
8,347
308
62
84
-1,717
170
37
-301
-27
993
9,813
701
2,903
9,347
811
2,989
8,551
600
3,312
9,505
639
2,819
11,064
641
2,952
8,852
628
2,318
19,670
39,276
134
-316
1,553
1,634
-368
834
967
833
1,896
1,817
1,265
1,008
833
1,149
343
183
1,633
174
16,059
13,654
185
354
-203
753
-22
-615
8,462
1,400
8,945
2,428
7,841
1,719
8,277
1,046
9,148
1,675
7,862
2,334
1. All data have been revised.
These data also appear in the Board's G.20 (422) release. For address, see
inside front cover.
Dec.
2. Not seasonally adjusted.
A38
1.53
Domestic Financial Statistics • May 1987
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1987
1986
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Terms and yields in primary and secondary markets
PRIMARY M A R K E T S
1
2
3
4
5
6
Conventional mortgages on new homes
Terms1
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan/price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount) 2
Contract rate (percent per annum)
Yield (percent per
7 FHLBB series 5
8 H U D series 4
96.8
73.7
78.7
27.8
2.64
11.87
104.1
77.4
77.1
26.9
2.53
11.12
118.1
86.2
75.2
26.6
2.48
9.82
117.9
84.8
74.5
26.5
2.40
9.84
124.0
90.4
75.2
27.1
2.49
9.74
127.5
93.9
75.6
27.9
2.66
9.57
124.2
92.5
76.2
27.3
2.64
9.45
124.8
93.2
76.4
27.4
2.46
9.28
132.6 r
97.3'
75.5'
27.7'
2.23'
9.14'
132.6
97.2
75.5
27.7
2.22
12.37
13.80
11.58
12.28
10.25
10.07
10.26
9.88
10.17
9.96
10.02
9.89
9.91
9.47
9.69
9.33
9.51'
9.09
9.25
9.04
13.81
13.13
12.24
11.61
9.91
9.30
9.80
9.11
9.90
9.17
9.80
9.06
9.26
8.83
9.21
8.62
i .79
8 .46
;.8i
i. 28
96,382
22,155
74,227
95,514
22,042
73,472
4.89
annum)
SECONDARY MARKETS
Yield (percent per annum)
9 FHA mortgages ( H U D series) 5
10 GNMA securities 6
Activity in secondary markets
F E D E R A L N A T I O N A L MORTGAGE ASSOCIATION
Mortgage holdings (end of
11 Total
12
FHA/VA-insured
13
Conventional
Mortgage transactions
14 Purchases
15 Sales
period)
(during
83,339
35,148
48,191
94,574
34,244
60,331
98,048
29,683
68,365
96,675
28,451
68,224
97,717
26,658
71,059
98,402
25,435
72,967
98,210
24,300
73,910
97,895
23,121
74,774
16,721
978
21,510
1,301
30,826
n a.
3,800
n.a.
4,649
n.a.
3,784
n.a.
2,549
n.a.
2,336
n.a.
1,346'
n.a.
9/9
n .a.
21,007
6,384
20,155
3,402
32,987
3,386
3,840
7,671
4,248
7,252
2,375
5,740
1,811
4,625
1,272
3,386
948
2,258
912
2,175
9,283
910
8,373
12,399
841
11,558
14,010
739
13,271
13,359
729
12,630
12,905
722
12,183
12,315
707
11,607
11,564
694
10,870
21,886
18,506
44,012
38,905
10,458
10,132
12,486
13,072
11,566
11,417
9,862
10,510
11,305
11,169
n a.
n.a.
32,603
13,318
48,989
16,613
13,707
n.a.
10,658
n.a.
9,356
n.a.
11,233
n.a.
8,742
n.a.
period)
Mortgage
commitments1
16 Contracted (during period)
17 Outstanding (end of period)
F E D E R A L H O M E L O A N MORTGAGE CORPORATION
Mortgage holdings (end of
18 Total
19
FHA/VA
20
Conventional
Mortgage transactions
21 Purchases
22 Sales
period)8
(during
Mortgage
commitments9
23 Contracted (during period)
24 Outstanding (end of period)
period)
1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; compiled by the Federal Home Loan Bank
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages; from Department of Housing and Urban Development.
5. Average gross yields on 30-year, minimum-downpayment, Federal Housing
Administration-insured first mortgages for immediate delivery in the private
secondary market. Based on transactions on first day of subsequent month. Large
monthly movements in average yields may reflect market adjustments to changes
in maximum permissable contract rates.
n.a.
6. Average net yields to investors on Government National Mortgage Association guaranteed, mortgage-backed, fully modified pass-through securities, assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying the
prevailing ceiling rate. Monthly figures are averages of Friday figures from the
Wall Street Journal.
7. Includes some multifamily and nonprofit hospital loan commitments in
addition to 1- to 4-family loan commitments accepted in FNMA's free market
auction system, and through the F N M A - G N M A tandem plans.
8. Includes participation as well as whole loans.
9. Includes conventional and government-underwritten loans. FHLMC's mortgage commitments and mortgage transactions include activity under mortgage/
securities swap programs, while the corresponding data for F N M A exclude swap
activity.
Real Estate
1.54
A39
MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
1986
1985
Type of holder, and type of property
1984
1985
1986
Q4
Q1
Q2
Q3
Q4
1 All holders
2,036,158
2,268,423
2,560,310''
2,268,423
2,317,641
2,385,417
2,466,597
2,560,310'
7 1- to 4-family
3 Multifamily
4 Commercial
5
1,320,444
185,414
418,300
112,000
1,468,273
213,816
480,719
105,615
1,667,879'
244,312'
549,358'
98,761'
1,468,273
213,816
480,719
105,615
1,4%,282
221,587
495,879
103,893
1,545,311
229,186
509,337
101,583
1,605,598
236,595
524,235
100,169
1,667,879'
244,312'
549,358'
98,761'
1,272,206
379,498
196,163
20,264
152,894
10,177
154,441
107,302
19,817
27,291
31
1,391,894
429,196
213,434
23,373
181,032
11,357
177,263
121,879
23,329
31,973
82
1,506,866'
502,308'
238,171'
30,456'
220,944'
12,737'
224,901
155,229
30,291
39,277
104
1,391,894
429,1%
213,434
23,373
181,032
11,357
177,263
121,879
23,329
31,973
82
1,410,344
441,0%
216,290
25,389
187,620
11,797
188,154
131,381
23,980
32,707
86
1,436,865
455,965
221,644
26,840
195,247
12,234
203,398
142,174
26,543
34,577
104
1,465,757
474,542
229,340
28,250
204,480
12,472
215,036
149,786
28,400
36,762
88
1,506,866'
502,308'
238,171'
30,456'
220,944'
12,737'
224,901
155,229
30,291
39,277
104
555,277
421,489
55,750
77,605
433
156,699
14,120
18,938
111,175
12,466
26,291
583,236
432,422
66,410
83,798
606
171,797
12,381
19,894
127,670
11,852
30,402
553,552
404,034
67,282
81,734
502
190,869
13,027
20,709
145,863
11,270
35,236
583,236
432,422
66,410
83,798
606
171,797
12,381
19,894
127,670
11,852
30,402
574,732
420,073
67,140
86,860
659
174,823
12,605
20,009
130,569
11,640
31,539
565,037
413,865
66,020
84,618
534
180,041
12,608
20,181
135,924
11,328
32,424
557,139
408,152
65,827
82,644
516
185,269
12,927
20,709
140,213
11,420
33,771
553,552
404,034
67,282
81,734
502
190,869
13,027
20,709
145,863
11,270
35,236
158,993
2,301
585
1,716
1,276
213
119
497
447
166,928
1,473
539
934
733
183
113
159
278
157,098'
889'
47
842'
480
140
50
120
170
166,928
1,473
539
934
733
183
113
159
278
165,041
1,533
527
1,006
704
217
33
217
237
161,398
876
49
827
570
146
66
111
247
159,505
887
48
839
457
132
57
115
153
157,098'
889'
47
842'
480
140
50
120
170
4,816
2,048
2,768
87,940
82,175
5,765
52,261
3,074
49,187
10,399
9,654
745
4,920
2,254
2,666
98,282
91,966
6,316
47,498
2,798
44,700
14,022
11,881
2,141
4,956'
2,360'
2,596
97,895
90,718
7,177
40,719
2,3%
38,323
12,159
10,927
1,232
4,920
2,254
2,666
98,282
91,966
6,316
47,498
2,798
44,700
14,022
11,881
2,141
4,964
2,309
2,655
98,795
92,315
6,480
45,422
2,673
42,749
13,623
12,231
1,392
5,094
2,449
2,645
97,295
90,460
6,835
43,369
2,552
40,817
14,194
11,890
2,304
4,966
2,331
2,635
97,717
90,508
7,209
42,119
2,478
39,641
13,359
11,127
2,232
4,956'
2,360'
2,5%
97,895
90,718
7,177
40,719
2,3%
38,323
12,159
10,927
1,232
49 Mortgage pools or trusts 3
50
Government National Mortgage Association
S1
1- to 4-family
57
Multifamily
Federal Home Loan Mortgage Corporation
53
54
1- to 4-family
55
Multifamily
56
Federal National Mortgage Association
57
1- to 4-family
58
Multifamily
59
Farmers Home Administration
60
1- to 4-family
61
Multifamily
6?
Commercial
Farm
63
332,057
179,981
175,589
4,392
70,822
70,253
569
36,215
35,965
250
45,039
21,813
5,841
7,559
9,826
415,042
212,145
207,198
4,947
100,387
99,515
872
54,987
54,036
951
47,523
22,186
6,675
8,190
10,472
576,797
260,869
255,132
5,737
170,393
165,856
4,537
97,174
95,791
1,383
48,361
21,682
7,453
8,459
10,767
415,042
212,145
207,198
4,947
100,387
99,515
872
54,987
54,036
951
47,523
22,186
6,675
8,190
10,472
440,701
220,348
215,148
5,200
110,337
108,020
2,317
62,310
61,117
1,193
47,706
22,082
6,943
8,150
10,531
475,615
229,204
223,838
5,366
125,903
123,676
2,227
72,377
71,153
1,224
48,131
21,987
7,170
8,347
10,627
522,721
241,230
235,664
5,566
146,871
143,734
3,137
86,359
85,171
1,188
48,261
21,782
7,353
8,409
10,717
576,797
260,869
255,132
5,737
170,393
165,856
4,537
97,174
95,791
1,383
48,361
21,682
7,453
8,459
10,767
64 Individuals and others 4
65
1- to 4-family
66
Multifamily
Commercial
67
Farm
68
272,902
153,710
48,480
41,279
29,433
294,559
165,199
55,195
47,897
26,268
319,549
177,133
64,567
52,961
24,888
294,559
165,199
55,195
47,897
26,268
301,555
167,755
57,850
49,756
26,194
311,539
174,3%
60,938
50,513
25,692
318,614
178,647
63,193
51,612
25,162
319,549
177,133
64,567
52,961
24,888
6 Selected financial institutions
7
Commercial banks 1
8
1- to 4-family
9
Multifamily
10
Commercial
11
Farm
Savings banks
13
1- to 4-family
14
Multifamily
Commercial
IS
Farm
16
1?
17
18
19
70
71
77.
73
74
75
76
27
Savings and loan associations
1- to 4-family
Multifamily
Commercial
Farm
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
Finance companies 2
28 Federal and related agencies
29
Government National Mortgage Association
30
1- to 4-family
31
Multifamily
Farmers Home Administration
37
33
1- to 4-family
34
Multifamily
35
Commercial
Farm
36
37
38
39
40
41
47
43
44
45
46
47
48
Federal Housing and Veterans
Administration
1- to 4-family
Multifamily
Federal National Mortgage Association
1- to 4-family
Multifamily
Federal Land Banks
1- to 4-family
Farm
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
1. Includes loans held by nondeposit trust companies but not bank trust
departments.
2. Assumed to be entirely 1- to 4-family loans.
3. Outstanding principal balances of mortgage pools backing securities insured
or guaranteed by the agency indicated.
4. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured
pension funds, credit unions, and other U.S. agencies.
NOTE. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve. Multifamily debt refers to
loans on structures of five or more units.
A40
1.55
DomesticNonfinancialStatistics • May 1987
CONSUMER INSTALLMENT CREDIT1-4 Total Outstanding, and Net Change, seasonally adjusted
Millions of dollars
1986
May
June
July
Aug.
1987
Sept.
Oct.
Nov.
Dec.
Jan.
Amounts outstanding (end of period)
1 Total
522,805
577,784
546,762
551,770
558,059
563,660
571,280
576,874
577,656
577,784
578,325
By major holder
Commercial banks
Finance companies 2
Credit unions
Retailers 3
Savings institutions
Gasoline companies
242,084
113,070
72,119
38,864
52,433
4,235
261,604
136,494
77,857
40,586
58,037
3,205
252,383
122,472
73,733
39,900
54,696
3,579
253,378
125,146
74,243
39,983
55,569
3,452
255,744
127,380
74,865
40,158
56,500
3,411
257,482
129,265
75,637
40,379
57,524
3,372
258,990
135,516
76,299
40,455
56,687
3,333
260,940
138,038
76,995
40,565
57,046
3,289
262,949
136,314
77,508
40,496
57,168
3,221
261,604
136,494
77,857
40,586
58,037
3,205
261,941
135,645
78,038
40,617
58,809
3,276
By major type of credit
8 Automobile
9
Commercial banks
Credit unions
10
11
Finance companies
12
Savings institutions
208,057
93,003
35,635
70,091
9,328
245,055
100,709
39,029
93,274
12,043
221,012
94,949
36,962
78,572
10,529
224,407
95,265
37,217
80,945
10,980
227,822
95,972
37,529
83,066
11,255
231,200
96,871
37,916
84,868
11,545
239,014
98,057
38,248
91,241
11,468
243,400
99,385
38,597
93,786
11,632
243,005
100,221
38,854
92,188
11,742
245,055
100,709
39,029
93,274
12,043
246,078
102,150
39,120
92,606
12,203
13 Revolving
14
Commercial banks
15
Retailers
16
Gasoline companies
17
Savings institutions
Credit unions
18
122,021
75,866
34,695
4,235
5,705
1,520
134,938
85,652
36,240
3,205
7,713
2,128
129,623
82,029
35,606
3,579
6,663
1,746
130,737
82,911
35,678
3,452
6,899
1,797
132,181
83,987
35,827
3,411
7,105
1,851
133,180
84,545
36,028
3,372
7,325
1,910
133,123
84,430
36,086
3,333
7,308
1,966
133,816
84,868
36,190
3,289
7,445
2,024
134,391
85,426
36,137
3,221
7,529
2,078
134,938
85,652
36,240
3,205
7,713
2,128
134,574
85,073
36,277
3,276
7,816
2,133
19 Mobile home
20
Commercial banks
21
Finance companies
22
Savings institutions
25,488
9,538
9,391
6,559
25,710
8,812
9,028
7,870
25,673
9,231
9,425
7,017
25,806
9,188
9,450
7,168
25,891
9,126
9,414
7,351
25,939
9,055
9,337
7,547
25,732
9,016
9,216
7,500
25,784
9,025
9,149
7,610
25,731
8,951
9,091
7,689
25,710
8,812
9,028
7,870
25,841
8,792
9,074
7,974
23 Other
24
Commercial banks
25
Finance companies
Credit unions
26
27
Retailers
28
Savings institutions
167,239
63,677
33,588
34,964
4,169
30,841
172,081
66,431
34,192
36,700
4,346
30,412
170,454
66,174
34,475
35,025
4,294
30,486
170,820
66,014
34,751
35,229
4,305
30,521
172,165
66,659
34,900
35,485
4,331
30,790
173,341
67,011
35,061
35,811
4,351
31,107
173,411
67,487
35,059
36,085
4,369
30,411
173,874
67,662
35,104
36,374
4,375
30,359
174,529
68,351
35,035
36,576
4,359
30,208
172,081
66,431
34,192
36,700
4,346
30,412
171,833
65,926
33,965
36,786
4,340
30,816
2
3
4
5
6
7
Net change (during period)
29 Total
76,622
54,979
4,237
5,008
6,289
5,601
7,620
5,594
782
128
541
By major holder
Commercial banks
Finance companies 2
Credit unions
Retailers 3
Savings institutions
Gasoline companies
32,926
23,566
6,493
1,660
12,103
-126
19,520
23,424
5,738
1,722
5,604
-1,030
1,223
2,029
249
290
694
-248
995
2,674
510
83
873
-127
2,366
2,234
622
175
931
-41
1,738
1,885
772
221
1,024
-39
1,508
6,251
662
76
-837
-39
1,950
2,522
696
110
359
-44
2,009
-1,724
513
-69
122
-68
-1,345
180
349
90
869
-16
337
-849
181
31
772
71
By major type of credit
36 Automobile
37
Commercial banks
Credit unions
38
39
Finance companies
40
Savings institutions
35,705
9,103
5,330
17,840
3,432
36,998
7,706
3,394
23,183
2,715
2,991
471
125
1,991
404
3,395
316
255
2,373
451
3,415
707
312
2,121
275
3,378
899
387
1,802
290
7,814
1,186
332
6,373
-77
4,386
1,328
349
2,545
164
-395
836
257
-1,598
110
2,050
488
175
1,086
301
1,023
1,441
91
-668
160
41 Revolving
42
Commercial banks
43
Retailers
44
Gasoline companies
45
Savings institutions
Credit unions
46
22,401
17,721
1,488
-126
2,771
547
12,917
9,786
1,545
-1,030
2,008
608
718
453
258
-248
211
44
1,114
882
72
-127
236
51
1,444
1,076
149
-41
206
54
999
558
201
-39
220
59
-57
-115
58
-39
-17
56
693
438
104
-44
137
58
575
558
-53
-68
84
54
547
226
103
-16
184
50
-364
-579
37
71
103
5
47 Mobile home
48
Commercial banks
49
Finance companies
50
Savings institutions
778
-85
-405
1,268
222
-726
-363
1,311
-30
-53
-103
126
133
-43
25
151
85
-62
-36
183
48
-71
-77
196
-207
-39
-121
-47
52
9
-67
110
-53
-74
-58
79
-21
-139
-63
181
131
-20
46
104
51 Other
52
Commercial banks
Finance companies
53
Credit unions
54
55
Retailers
56
Savings institutions
17,738
6,187
6,131
616
172
4,632
4,842
2,754
604
1,736
177
-429
558
352
142
80
32
-48
366
-160
276
204
11
35
1,345
645
149
256
26
269
1,176
352
161
326
20
317
70
476
-2
274
18
-696
463
175
45
289
6
-52
655
689
-69
202
-16
-151
-2,448
-1,920
-843
124
-13
204
-248
-505
-227
86
-6
404
30
31
32
33
34
35
1. The Board's series cover most short- and intermediate-term credit extended
to individuals that is scheduled to be repaid (or has the option of repayment) in
two or more installments.
2. More detail for finance companies is available in the G.20 statistical release,
3. Excludes 30-day charge credit held by travel and entertainment companies,
4. All data have been revised.
Consumer Installment
Credit
A41
1.56 TERMS OF CONSUMER INSTALLMENT CREDIT
Percent unless noted otherwise
1987
1986
Item
1984
1985
1986
July
Aug.
Sept.
Nov.
Oct.
Dec.
Jan.
INTEREST R A T E S
1
2
3
4
5
6
Commercial banks 1
48-month new car 2
24-month personal
120-month mobile home 2
Credit card
Auto finance companies
N e w car
Used car
13.71
16.47
15.58
18.77
12.91
15.94
14.96
18.69
11.33
14.82
13.99
18.26
n.a.
n.a.
n.a.
n.a.
11.00
14.70
13.95
18.15
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
10.58
14.19
13.49
18.09
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
14.62
17.85
11.98
17.59
9.44
15.95
9.31
15.83
9.29
15.56
5.40
15.23
6.12
15.17
11.83
15.20
11.71
15.12
11.65
14.62
48.3
39.7
51.5
41.4
50.0
42.6
49.9
42.8
50.4
42.9
44.5
42.5
45.3
42.2
53.4
42.6
53.3
42.7
53.8
44.8
88
92
91
94
91
97
89
97
90
97
92
98
92
97
93
97
93
98
94
98
9,333
5,691
9,915
6,089
10,665
6,555
10,748
6,614
10,756
6,569
11,162
6,763
11,340
6,746
11,160
6,946
10,835
7,168
10,902
7,067
OTHER TERMS3
7
8
9
10
11
12
Maturity (months)
N e w car
Used car
Loan-to-value ratio
New car
Used car
Amount financed (dollars)
N e w car
Used car
1. Data for midmonth of quarter only.
2. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
3. At auto finance companies.
NOTE. These data also appear in the Board's G.19 (421) release. For address,
see inside front cover.
A42
1.57
DomesticNonfinancialStatistics • May 1987
FUNDS RAISED IN U.S. CREDIT MARKETS
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1985
1982
Transaction category, sector
1984
1983
1986
1985
Nonfinancial sectors
375.8
387.4
548.8
756.3
869.3
827.7
727.8
784.8
732.6
1,006.1
705.2
950.7
87.4
87.8
-.5
161.3
162.1
-.9
186.6
186.7
-.1
198.8
199.0
-.2
223.6
223.7
-.1
214.3
214.7
-.3
181.3
181.5
-.2
216.3
216.4
-.1
201.8
201.9
-.1
245.5
245.5
-.1
211.3
211.4
-.1
217.5
218.0
-.5
5 Private domestic nonfinancial sectors
6
Debt capital instruments
7
Tax-exempt obligations
8
Corporate bonds
9
Mortgages
10
Home mortgages
11
Multifamily residential
12
Commercial
13
Farm
288.5
155.5
23.4
22.8
109.3
72.2
4.8
22.2
10.0
226.2
148.3
44.2
18.7
85.4
50.5
5.4
25.2
4.2
362.2
252.8
53.7
16.0
183.0
117.1
14.1
49.0
2.8
557.5
314.0
50.4
46.1
217.5
129.9
25.1
63.3
-.8
645.7
461.7
152.4
73.9
235.4
150.3
29.2
62.4
-6.4
613.3
447.0
48.5
109.2
289.4
200.6
30.4
64.4
-6.0
546.5
298.4
42.8
31.2
224.5
135.2
27.5
62.9
-1.1
568.5
329.6
58.0
61.1
210.5
124.7
22.7
63.7
-.5
530.8
355.4
67.5
72.7
215.2
133.1
24.6
60.3
-2.8
760.6
568.0
237.3
75.1
255.7
167.5
33.7
64.4
-10.0
494.0
384.3
15.9
129.2
239.2
156.4
30.9
59.3
-7.4
733.2
509.7
81.1
89.1
339.5
244.7
29.9
69.5
-4.6
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
133.0
22.6
57.0
14.7
38.7
77.9
17.7
52.9
-6.1
13.4
109.5
56.8
25.8
-.8
27.7
243.5
95.0
80.1
21.7
46.6
184.0
96.6
41.3
14.6
31.4
166.3
67.9
80.2
-9.3
27.4
248.1
98.7
91.9
24.8
32.7
238.9
91.3
68.4
18.7
60.5
175.4
97.3
24.9
12.3
40.9
192.6
95.9
57.7
16.9
22.0
109.6
75.3
22.0
-15.7
28.1
223.5
61.2
138.4
-2.9
26.8
19
20
21
22
23
24
By borrowing sector
State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
288.5
6.8
121.4
16.6
38.5
105.2
226.2
21.5
88.4
6.8
40.2
69.2
362.2
34.0
188.0
4.3
76.6
59.3
557.5
27.4
239.5
.1
97.1
193.4
645.7
107.8
295.0
-13.6
92.8
163.7
613.3
60.0
291.2
-11.7
100.7
173.2
546.5
25.2
232.8
-.4
101.4
187.4
568.5
29.6
246.2
.5
92.7
199.5
530.8
56.8
253.6
-5.9
85.6
140.7
760.6
158.7
336.4
-21.3
99.9
186.8
494.0
35.7
231.8
-15.2
95.7
145.9
733.2
84.2
351.1
-8.3
105.7
200.5
25 Foreign net borrowing in United States
26
Bonds
27
Bank loans n.e.c
28
Open market paper
29
U.S. government loans
23.5
5.4
3.0
3.9
11.1
16.0
6.7
-5.5
1.9
13.0
17.4
3.1
3.6
6.5
4.1
6.1
1.3
-6.6
6.2
5.3
1.7
4.0
-2.8
6.2
-5.7
14.4
5.2
-2.1
11.5
-.2
35.5
1.1
-2.2
18.0
18.7
-23.3
1.5
-11.1
-5.6
-8.1
-4.1
5.5
-6.1
4.2
-7.8
7.5
2.6
.4
8.2
-3.6
24.3
7.1
1.4
20.6
-4.8
4.4
3.3
-5.6
2.4
4.4
399.3
403.4
566.2
762.4
871.0
842.0
763.3
761.5
728.4
1,013.5
729.5
955.1
1 Total net borrowing by domestic nonfinancial sectors
By sector and instrument
2 U.S. government
3
Treasury securities
4
Agency issues and mortgages
30 Total domestic plus foreign
Financial sectors
31 Total net borrowing by financial sectors . .
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
By instrument
U.S. government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. government
Private financial sectors
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks
By sector
Sponsored credit agencies
Mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Savings and loan associations
Finance companies
REITs
101.9
47.4
30.5
15.0
1 9
54.5
4.4
*
1.2
32.7
16.2
32.4
15.0
54.5
11.6
9.2
15.5
18.5
-.2
90.1
94.0
139.0
186.9
242.0
134.2
143.8
154.8
218.9
189.0
295.0
64.9
14.9
49.5
4
25.2
12.5
.1
1.9
9.9
.8
67.8
1.4
66.4
74.9
30.4
44.4
80.0
31.8
48.2
92.9
25.3
67.6
64.4
17.3
.4
-.1
31.1
15.7
63.8
29.3
.4
1.4
17.0
15.7
61.9
35.3
-.1
21.3
-7.0
64.1
23.3
.4
.7
24.1
15.7
171.1
12.4
159.0
-.4
71.0
22.3
.1
3.6
25.2
19.8
69.8
29.1
40.7
26.2
12.1
101.5
20.6
79.9
1 1
85.3
36.5
.1
2.6
32.0
14.2
.9
13.9
11.7
110.2
15.9
92.1
2.2
108.8
37.7
.1
4.2
50.1
16.7
129.5
4.4
124.3
.8
59.6
28.7
.6
2.4
14.4
13.5
212.7
20.5
193.7
-1.5
82.4
15.9
-.5
4.7
36.1
26.2
1.4
66.4
26.2
5.0
12.1
-2.1
11.4
-.2
30.4
44.4
64.1
7.3
15.6
22.7
17.8
.8
21.7
79.9
85.3
-4.9
14.5
22.3
52.8
.5
12.1
159.0
71.0
-2.2
4.5
31.3
36.9
.5
29.1
40.7
64.4
15.4
23.7
20.2
4.3
.8
31.8
48.2
63.8
-.9
7.5
25.1
31.3
.8
25.3
67.6
61.9
-9.2
13.7
12.1
44.8
.5
18.1
92.1
108.8
-.6
15.3
32.6
60.9
.5
5.2
124.3
59.6
-6.7
1.7
23.1
40.6
.9
18.9
193.7
82.4
2.3
7.2
39.5
33.2
.1
15.3
49.5
25.2
11.7
6.8
2.5
4.3
*
*
*
All sectors
50 Total net borrowing
501.3
493.5
660.2
901.4
1057.8
1084.1
897.5
905.3
833.3
1,232.4
918.6
1250.1
51
52
53
54
55
56
57
58
133.0
23.4
32.6
109.2
22.6
61.2
51.3
68.0
225.9
44.2
37.8
85.4
17.7
49.3
5.7
27.6
254.4
53.7
31.2
183.0
56.8
29.3
26.9
24.8
273.8
50.4
70.7
217.8
95.0
74.2
52.0
67.6
324.2
152.4
114.4
235.4
96.6
41.0
52.8
41.0
385.8
48.5
136.6
289.4
67.9
81.7
27.4
46.7
251.2
42.8
49.6
224.8
98.7
89.6
73.8
67.1
296.4
58.0
91.9
210.8
91.3
58.8
30.1
68.1
294.8
67.5
113.5
215.2
97.3
19.8
30.4
44.8
353.5
237.3
115.3
255.7
95.9
62.3
75.2
37.3
340.0
15.9
165.0
239.7
75.3
25.9
19.3
37.5
431.7
81.1
108.3
339.0
61.2
137.5
35.5
55.8
U.S. government securities..
State and local obligations...
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
External corporate equity funds raised in United States
59 Total new share issues
60
61
62
63
64
Mutual funds
All other
Nonfinancial corporations
Financial corporations
Foreign shares purchased in United States
-3.3
33.6
67.0
-31.1
37.5
115.3
-40.1
-22.2
33.3
41.6
149.6
81.1
6.0
-9.3
-11.5
1.9
.3
16.8
16.8
11.4
4.0
1.5
32.1
34.9
28.3
2.7
3.9
38.0
-69.1
-77.0
6.7
1.2
103.4
-65.9
-81.6
11.7
4.0
187.6
-72.3
-80.8
6.7
1.8
39.3
-79.4
-84.5
5.9
-.7
36.6
-58.8
-69.4
7.6
3.0
93.6
-60.4
-75.7
113.1
-71.5
-87.5
12.4
3.6
201.5
-52.0
-68.7
8.3
8.5
173.6
-92.6
-92.7
5.1
-4.9
11.0
4.3
Flow of Funds
1.58
A43
DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates.
1984
Transaction category, or sector
1981
1982
1983
1984
1985
HI
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
?
3
4
5
6
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to savings and loans
Other loans and securities
1986
1985
1986
H2
HI
H2
HI
H2
375.8
387.4
548.8
756.3
869.3
827.7
727.8
784.8
732.6
1,006.1
705.2
950.7
104.4
17.1
23.5
16.2
47.7
115.4
22.7
61.0
.8
30.8
115.3
27.6
76.1
-7.0
18.6
154.6
36.0
56.5
15.7
46.5
203.3
47.2
94.6
14.2
47.3
313.0
85.5
156.5
19.8
51.2
132.5
26.8
52.7
15.7
37.5
176.6
45.2
60.2
15.7
55.5
201.8
53.1
85.6
11.7
51.4
204.9
41.3
103.7
16.7
43.2
261.3
77.4
121.0
13.5
49.4
364.6
93.5
191.9
26.2
53.0
7
8
9
10
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
24.0
48.2
9.2
23.0
15.9
65.5
9.8
24.1
9.7
69.8
10.9
24.9
17.4
73.3
8.4
55.5
17.8
101.5
21.6
62.4
14.2
170.6
30.2
98.0
9.0
74.0
8.8
40.7
25.7
72.5
8.0
70.4
28.8
98.2
23.7
51.0
6.7
104.9
19.5
73.8
14.6
127.3
9.8
109.7
13.8
214.0
50.6
86.2
11
12
Agency and foreign borrowing not in line 1
Sponsored credit agencies and mortgage pools
Foreign
47.4
23.5
64.9
16.0
67.8
17.4
74.9
6.1
101.5
1.7
171.1
14.4
69.8
35.5
80.0
-23.3
92.9
-4.1
110.2
7.5
129.5
24.3
212.7
4.4
342.3
115.9
23.4
19.8
53.5
145.9
16.2
352.9
203.1
44.2
14.8
-5.3
96.9
.8
518.7
226.9
53.7
14.6
55.0
161.5
-7.0
682.7
237.8
50.4
32.6
98.5
279.1
15.7
769.2
277.0
152.4
41.2
84.8
228.1
14.2
700.1
300.3
48.5
75.3
74.5
221.3
19.8
700.5
224.4
42.8
25.6
109.9
313.6
15.7
664.9
251.2
58.0
39.6
87.0
244.7
15.7
619.6
241.7
67.5
49.7
72.0
200.4
11.7
918.8
312.2
237.3
32.7
97.5
255.9
16.7
597.7
262.5
15.9
96.4
66.2
170.1
13.5
803.2
338.2
81.1
54.3
82.7
273.0
26.2
Commercial banking
Savings institutions
Insurance and pension funds
Other finance
320.2
106.5
26.2
93.5
94.0
261.9
110.2
21.8
86.2
43.7
391.9
144.3
135.6
97.8
14.1
550.5
168.9
149.2
124.0
108.3
554.4
186.3
83.4
141.0
143.6
659.2
203.2
109.6
137.3
209.1
581.8
184.2
173.5
144.5
79.5
519.1
153.5
124.9
103.5
137.2
471.3
133.8
63.0
121.8
152.7
637.4
238.8
103.9
160.1
134.5
572.5
106.9
101.4
124.6
239.6
746.6
299.8
117.8
150.1
178.8
?5 Sources of funds
76
Private domestic deposits and RPs
27
Credit market borrowing
320.2
214.5
54.5
261.9
195.2
25.2
391.9
212.2
26.2
550.5
317.6
64.1
554.4
204.8
85.3
659.2
253.3
71.0
581.8
300.2
64.4
519.1
334.9
63.8
471.3
203.0
61.9
637.4
206.6
108.8
572.5
224.5
59.6
746.6
282.3
82.4
51.2
-23.7
-1.1
89.6
-13.6
41.5
-31.4
6.1
92.5
-25.7
153.4
16.3
-5.3
110.6
31.8
168.8
5.4
4.0
112.5
46.8
264.2
17.7
10.3
107.0
129.2
334.9
14.7
1.9
120.2
198.1
217.2
3.0
-.1
146.5
67.8
120.4
7.8
8.2
78.5
25.9
206.5
11.2
14.4
97.4
83.5
322.0
24.3
6.1
116.6
175.0
288.4
.9
-5.5
104.5
188.5
381.9
28.6
9.4
135.9
208.1
Private domestic nonfinancial
investors
33 Direct lending in credit markets
34
U.S. government securities
35
State and local obligations
36
Corporate and foreign bonds
37
Open market paper
38
Other
76.6
37.1
11.1
-4.0
1.4
31.0
116.3
69.9
25.0
2.0
-1.3
20.6
153.0
95.5
39.0
-12.7
15.1
16.2
196.4
132.9
29.6
-3.4
8.9
28.3
300.2
150.9
59.2
13.2
51.8
25.1
111.9
65.7
6.4
11.5
7.0
21:3
183.1
142.2
25.0
-26.8
15.7
26.9
209.6
123.6
34.3
19.9
2.2
29.7
210.2
130.8
20.5
25.4
7.3
26.3
390.2
171.0
98.0
1.0
96.3
24.0
84.8
53.4
-24.5
44.6
-13.0
24.3
139.0
78.2
37.3
-21.6
27.1
18.0
39 Deposits and currency
40
41
Checkable deposits
4?
Small time and savings accounts
43
Money market fund shares
44
Large time deposits
45
Security RPs
46
Deposits in foreign countries
222.4
9.5
18.5
47.3
107.5
36.0
5.2
-1.7
204.5
9.7
18.6
135.7
24.7
5.2
11.1
-.4
229.7
14.3
28.8
215.3
-44.1
-6.3
18.5
3.1
321.1
8.6
27.8
150.7
47.2
84.9
7.0
-5.1
215.1
12.4
42.0
137.5
-2.2
14.0
13.4
-2.1
274.9
14.4
99.2
117.9
20.8
1.6
13.7
7.1
311.3
13.1
29.4
136.4
30.2
93.4
10.8
-2.0
330.9
4.1
26.3
164.9
64.2
76.5
3.1
-8.2
215.9
15.8
18.2
167.1
4.2
-.8
14.3
-2.9
214.3
9.0
65.8
108.0
-8.6
28.9
12.5
-1.3
241.6
10.9
83.9
117.5
29.0
2.0
-7.9
6.2
308.3
18.0
114.6
118.3
12.7
1.3
35.3
8.1
47 Total of credit market instruments, deposits and
currency
Private domestic funds
advanced
13 Total net advances
14
U.S. government securities
15
State and local obligations
16
Corporate and foreign bonds
17
Residential mortgages
18
Other mortgages and loans
19
LESS: Federal Home Loan Bank advances
Private financial intermediation
70 Credit market funds advanced by private financial
?1
??
73
24
78
79
30
31
32
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
299.0
320.7
382.7
517.4
515.3
386.7
494.4
540.5
426.0
604.5
326.4
447.3
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
26.2
93.6
-.7
28.6
74.2
-7.3
20.4
75.5
41.3
20.3
80.6
60.9
23.3
72.1
80.1
37.2
94.2
112.7
17.4
83.1
43.7
23.2
78.1
78.2
27.7
76.1
62.2
20.2
69.4
98.1
35.8
95.8
110.5
38.2
93.0
114.8
MEMO: Corporate equities not included above
51 Total net issues
5?
Mutual fund shares
53
Other equities
54 Acquisitions by financial institutions
55 Other net purchases
-3.3
6.0
-9.3
19.9
-23.2
33.6
16.8
16.8
27.6
6.0
67.0
32.1
34.9
46.8
20.2
-31.1
38.0
-69.1
8.2
-39.4
37.5
103.4
-65.9
33.3
4.1
115.3
187.6
-72.3
27.8
87.5
-40.1
39.3
-79.4
-4.1
-36.0
-22.2
36.6
-58.8
20.6
-42.7
33.3
93.6
-60.4
54.0
-20.7
41.6
113.1
-71.5
12.6
29.0
149.6
201.5
-52.0
35.4
114.2
81.1
173.6
-92.6
20.3
60.7
48
49
50
N O T E S BY LINE N U M B E R .
1.
2.
6.
11.
13.
18.
26.
27.
29.
30.
Line 1 of table 1.57.
Sum of lines 3 - 6 or 7-10.
Includes farm and commercial mortgages.
Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities.
Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33. Also
sum of lines 28 and 47 less lines 40 and 46.
Includes farm and commercial mortgages.
Line 39 less lines 40 and 46.
Excludes equity issues and investment company shares. Includes line 19.
Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affiliates, less
claims on foreign affiliates and deposits by banking in foreign banks.
Demand deposits and note balances at commercial banks.
31. Excludes net investment of these reserves in corporate equities.
32. Mainly retained earnings and net miscellaneous liabilities.
33. Line 13 less line 20 plus line 27.
34-38. Lines 14-18 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 38 includes mortgages.
40. Mainly an offset to line 9.
47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46.
48. Line 2/line 1.
49. Line 20/line 13.
50. Sum of lines 10 and 29.
51. 53. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding may be obtained from Flow of Funds Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.
A44
2.10
Domestic Nonfinancial Statistics • May 1987
NONFINANCIAL BUSINESS ACTIVITY
Selected Measures'
1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1986
Measure
1984
1985'
1987
1986
June
July
Aug.
Sept.
Oct.
Nov.
Dec.'
Jan.'
Feb.
1
Industrial production
121.4'
123.8
125.0
124.2
124.9
125.1
124.9
125.3
126.0
126.6
126.8
127.3
2
3
4
5
6
7
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
126.7'
127.3'
118.0'
139.6'
124.7'
114.2'
130.8
131.1
120.2
145.4
130.0
114.2
133.2
132.3
124.4
142.7
136.4
113.9
132.4
131.1
124.4
140.0
137.0
113.1
133.2
132.0
125.2
141.0
137.3
113.6
133.8
132.6
125.1
142.5
137.8
113.2
133.3
132.2
124.2
142.8
137.0
113.5
134.0
132.7
124.7
143.3
138.7
113.3
134.5
133.1'
125.6'
143.1'
139.2'
114.3'
135.0
133.7
127.2
142.2
139.8
115.1
135.2
133.6
126.8
142.6
140.9
115.3
136.0
134.5
127.5
143.7
141.2
115.5
8
Industry
groupings
Manufacturing
123.4'
126.4
129.1
128.3
129.2
129.5
129.5
129.9
130.3'
131.0
131.1
131.8
80.5
82.0
80.1
80.2
79.8
79.3
78.0
79.7
78.3
79.7
77.9
79.6
78.1
79.6
77.8
79.8
78.4
80.0
78.9
79.9
78.9
80.1
78.9
Capacity utilization (percent) 2
9
Manufacturing
10
Industrial materials industries
3
11
Construction contracts (1982 = 100)
135.0
148.0
155.0
159.0
157.0
155.0
155.0
151.0
156.0
155.0
150.0
145.0
12
13
14
15
16
17
18
19
20
21
Nonagricultural employment, total 4
Goods-producing, total
Manufacturing, total
Manufacturing, production-worker . . .
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable personal income 5
Retail sales 6
114.5
101.6
98.6
94.1
120.0
193.5
184.8
164.6
193.6
179.0
118.4
102.4
98.1
92.9
125.0
206.2
197.8
172.5
205.0
190.6
121.5
102.5
97.5
92.1
129.4
216.9
208.6
176.7
215.5
199.9
121.1
102.1
97.2
91.8
129.0
216.6
207.6
175.4
215.5
197.5
121.4
102.2
97.1
91.7
129.4
217.2
208.5
175.5
215.8
198.9
121.6
102.2
97.1
91.7
129.7
217.6
209.6
176.6
215.9
201.7
121.9
102.1
97.0
91.7
130.2
218.2
210.1
176.5
216.4
213.0
122.3
102.1
97.1
91.8
130.7
218.8
211.5
179.0
216.7
201.9
122.6
102.3
97.3
92.1
131.1
219.2
212.5
177.8
216.8
200.9
122.9
102.4
97.5
92.3
131.4
220.4
212.8
178.1
217.5
210.7
123.2
102.7
97.4
92.2
131.8
220.8
214.1
178.8
219.4
195.1
123.7
102.9
97.6
92.5
132.3
222.8
215.9
179.7
222.1
203.0
22
23
Prices 7
Consumer (1967=100)
Producer finished goods (1967=100)
311.1
291.1
322.2
293.7
328.4
289.6
327.9
289.3
328.0
287.6
328.6
288.1
330.2
287.3
330.5
290.5
330.8
290.7
331.1
289.9
333.1
291.7
334.4
292.3
1. A major revision of the industrial production index and the capacity
utilization rates was released in July 1985. See "A Revision of the Index of
Industrial Production" and accompanying tables that contain revised indexes
( 1 9 7 7 = 1 0 0 ) t h r o u g h D e c e m b e r 1 9 8 4 in t h e FEDERAL RESERVE B U L L E T I N , v o l . 71
(July 1985), pp. 487-501. The revised indexes for January through June 1985 were
shown in the September BULLETIN.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, Department of Commerce, and other sources.
3. Index of dollar value of total construction contracts, including residential,
nonresidential and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
5. Based on data in Survey of Current Business (U.S. Department of Commerce).
6. Based on Bureau of Census data published in Survey of Current
Business.
7. Data without seasonal adjustment, as published in Monthly Labor
Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5, and 6,
and indexes for series mentioned in notes 3 and 7 may also be found in the Survey
of Current Business.
Figures for industrial production for the last two months are preliminary and
estimated, respectively.
Selected Measures
2.11
A45
LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1987
1986
Category
1984
1985'
1986
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
HOUSEHOLD SURVEY DATA
1 Noninstitutional population 1
178,602
180,440
182,822
182,906
183,074
183,261
183,450
183,628
183,815
184,092
184,259
2 Labor force (including Armed Forces) 1
3
Civilian labor force
115,763
113,544
117,695
115,461
120,078
117,834
120,341
118,117
120,370
118,124
120,536
118,272
120,678
118,414
120,940
118,675
120,854
118,586
121,299
119,034
121,610
119,349
Nonagricultural industries 2
Agriculture
Unemployment
Number
6
7
Rate (percent of civilian labor force) . . .
8 Not in labor force
101,685
3,321
103,971
3,179
106,434
3,163
106,763
3.124
107,010
3,057
106,845
3,142
107,030
3,162
107,217
3,215
107,476
3,161
107,866
3,145
108,146
3,236
8,539
7.5
62,839
8,312
7.2
62,745
8,237
7.0
62,744
8,230
7.0
62,565
8,057
6.8
62,704
8,285
7.0
62,725
8,222
6.9
62,772
8,243
6.9
62,688
7,949
6.7
62,961
8,023
6.7
62,793
7,967
6.7
62,649
94,461
97,614
100,168
100,105
100,283
100,560
100,826
101,068
101,322'
101,641'
101,978
19,412
974
4,345
5,171
22,134
5,682
20,761
15,984
19,314
930
4,687
5,242
23,100
5,953
21,974
16,415
19,187
792
4,961
5,285
23,829
6,304
23,073
16,738
19,121
768
4,980
5,288
23,841
6,334
23,176
16,597
19,123
753
5,012
5,255
23,893
6,364
23,255
16,628
19,105
743
5,010
5,316
23,924
6,388
23,300
16,774
19,118
746
5,001
5,316
24,007
6,409
23,359
16,870
19,156
742
4,993
5,351
24,056
6,429
23,451
16,890
19,186'
738'
4,996'
5,359
24,065'
6,472'
23,578'
16,928'
19,171'
729
5,109'
5,378'
24,190'
6,496'
23,665'
16,903'
19,221
727
5,111
5,383
24,330
6,512
23,778
16,916
4
5
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment 3
10
11
12
13
14
15
16
17
Manufacturing
Mining
Contract construction
Transportation and public utilities
Finance
Service
Government
1. Persons 16 years of age and over. Monthly figures, which are based on
sample data, relate to the calendar week that contains the 12th day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the March 1984
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A46
Domestic Nonfinancial Statistics • May 1987
2.12
OUTPUT, CAPACITY, AND CAPACITY UTILIZATION
Seasonally adjusted
1986
1986
1986
Series
Q2
Ql
Q3
Q4'
Output (1977 = 100)
Ql
Q2
Q3
Q4
Q2
Ql
Capacity (percent of 1977 output)
Q4'
Q3
Utilization rate (percent)
1 Total industry
125.0
124.4
125.0
125.9
156.3
157.1
157.9
158.7
80.0
79.2
79.1
79.3
2 Mining
3 Utilities
105.4
110.5
99.9
108.9
96.6
108.8
96.7
110.2
132.4
136.3
132.1
136.9
131.9
137.5
131.7
138.1
79.6
81.1
75.6
79.5
73.2
79.1
73.4
79.8
4 Manufacturing
128.4
128.4
129.4
130.4
160.5
161.4
162.4
163.4
80.0
79.5
79.7
79.8
5 Primary processing . . .
6 Advanced processing
111.5
138.5
111.1
138.9
112.1
139.7
114.0
140.4
133.6
176.7
134.0
177.9
134.6
179.1
135.1
180.4
83.5
78.4
82.9
78.0
83.3
78.0
84.4
77.8
7 Materials
114.5
113.3
113.4
114.3
144.2
144.7
145.3
145.8
79.4
78.3
78.1
78.4
8 Durable goods
9
Metal materials . . . .
10 Nondurable g o o d s . . . .
Textile, paper, and chemical..
11
12
Paper
13
Chemical
120.9
79.0
115.7
116.2
128.8
115.3
118.8
75.1
116.9
117.0
130.1
115.4
118.8
73.1
119.7
120.4
135.1
117.7
120.1
75.7
121.1
122.1
135.0
120.1
159.9
115.0
139.0
138.4
137.3
144.0
160.7
114.5
139.5
138.8
138.1
144.3
161.5
114.0
139.9
139.2
138.9
144.7
162.2
113.4
140.4
139.6
139.7
145.0
75.6
68.7
83.2
83.9
93.8
80.1
73.9
65.6
83.8
84.3
94.2
80.0
73.6
64.2
85.6
86.5
97.3
81.4
74.0
66.8
86.2
87.5
96.7
82.8
14 Energy materials
102.2
100.6
98.6
98.1
121.1
121.3
121.4
121.6
84.4
82.9
81.2
80.7
Previous cycle 1
High
Low
Latest cycle 2
1986
High
Feb.
Low
1986
June
July
Aug.
Sept.
1987
Oct.
Nov.
Dec.'
Jan.'
Feb.
Capacity utilization rate (percent)
15 Total industry
88.6
72.1
86.9
69.5
80.2
79.0
79.2
79.2
79.0
79.0
79.4
79.6
79.6
79.8
16 Mining
17 Utilities
92.8
95.6
87.8
82.9
95.2
88.5
76.9
78.0
79.4
80.4
74.9
79.2
73.5
79.9
73.1
78.8
72.9
78.7
72.5
79.3
73.9'
80.5
73.8
79.5
75.1
80.4
75.3
80.8
18 Manufacturing
87.7
69.9
86.5
68.0
80.2
79.3
79.7
79.7
79.6
79.6
79.8
80.0
79.9
80.1
19 Primary processing . . .
20 Advanced processing .
91.9
86.0
68.3
71.1
89.1
85.1
65.1
69.5
83.6
78.6
82.7
77.7
82.9
78.4
83.2
78.0
83.7
77.6
83.8
77.8
84.4
77.7
85.0
77.9
85.1
77.7
85.0
77.9
21 Materials
92.0
70.5
89.1
68.4
79.6
78.0
78.3
77.9
78.1
77.8
78.4
78.9
78.9
78.9
22 Durable goods
23
Metal materials
91.8
99.2
64.4
67.1
89.8
93.6
60.9
45.7
75.9
69.0
73.2
63.2
73.7
63.8
73.5
63.8
73.5
64.8
73.6
65.2
74.2
68.4'
74.3
66.7
74.1
65.4
74.1
66.3
24 Nondurable goods . . . .
25
Textile, paper, and
chemical
76
77
91.1
66.7
88.1
70.6
83.5
84.3
85.0
85.5
86.1
85.8
85.7'
87.3
87.2
87.3
92.8
98.4
92.5
64.8
70.6
64.4
89.4
97.3
87.9
68.6
79.9
63.3
84.2
93.8
80.2
85.1
95.9
80.4
85.6
97.8
80.2
86.5
97.9
81.2
87.4
96.1
82.6
87.0
95.7
82.5
86.7
96 0
81.7
88.7
98 2
84.3
88.6
98 2
84.8
88.9
28 Energy materials
94.6
86.9
94.0
82.2
84.3
83.1
82.3
80.6
80.7
79.7
81.2
81.1
81.7
81.9
1. Monthly high 1973; monthly low 1975.
2. Monthly highs 1978 through 1980; monthly lows 1982.
NOTE. These data also appear in the Board's G.3 (402) release. For address, see
inside front cover.
Selected Measures
2.13
INDUSTRIAL PRODUCTION
A47
Indexes and Gross Value A
Monthly data are seasonally adjusted
Grouping
1977
proportion
1987
1986
1986
avg.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
r
Dec.
Jan.P
Feb.*
Index (1977 = 100)
MAJOR M A R K E T
100.00
125.0
125.3
123.6
124.7
124.2
124.2
124.9
125.1
124.9
125.3
126.0
126.6
126.8
127.3
2 Products
3
Final products
4
Consumer goods
5
Equipment
57.72
44.77
25.52
19.25
133.2
132.3
124.4
142.7
132.9
132.8
123.3
145.4
131.2
130.6
121.8
142.3
132.7
132.1
124.5
142.3
132.4
131.6
124.3
141.2
132.4
131.1
124.4
140.0
133.2
132.0
125.2
141.0
133.8
132.6
125.1
142.5
133.3
132.2
124.2
142.8
134.0
132.7
124.7
143.3
134.5
133.1
125.6
143.1
135.0
133.7
127.2
142.2
135.2
133.6
126.8
142.6
136.0
134.5
127.5
143.7
6
Intermediate products
7 Materials
12.94
42.28
136.4
113.9
133.4
114.8
133.3
113.3
134.5
113.8
135.1
113.0
137.0
113.1
137.3
113.6
137.8
113.2
137.0
113.5
138.7
113.3
139.2
114.3
139.8
115.1
140.9
115.3
141.2
115.5
6.89
2.98
1.79
1.16
.63
1.19
3.91
1.24
1.19
.96
1.71
116.2
115.1
112.9
97.3
141.8
118.4
117.1
139.5
141.6
125.8
96.0
116.6
117.6
119.4
107.1
142.1
114.9
115.8
135.1
137.6
124.4
97.0
112.4
110.4
106.3
93.7
129.6
116.6
113.9
133.7
136.0
121.2
95.5
115.9
116.4
115.1
100.8
141.5
118.4
115.5
138.8
140.6
121.8
95.0
113.8
113.2
110.3
94.8
139.1
117.4
114.3
133.9
135.8
123.3
95.0
114.3
113.7
112.2
99.3
136.1
116.1
114.8
137.5
139.1
122.5
94.1
116.3
116.4
114.5
95.3
150.3
119.1
116.3
138.9
141.6
126.6
94.1
115.7
114.5
110.4
87.8
152.4
120.7
116.7
139.4
142.5
125.8
95.1
117.4
117.0
116.8
96.2
155.1
117.3
117.7
141.2
143.5
126.2
96.0
116.3
112.7
107.7
91.9
137.1
120.1
119.0
142.6
144.3
128.8
96.5
118.4
114.6
107.6
92.3
136.0
125.2
121.2
148.1
150.0
131.1
96.3
121.7
117.8
115.6
99.5
145.6
121.0
124.7
154.1
156.1
132.2
99.3
119.3
118.2
117.9
94.3
161.9
118.7
120.1
142.5
144.3
129.2
98.8
121.7
123.5
125.1
105.2
19 Nondurable consumer goods
20
Consumer staples
21
Consumer foods and tobacco
22
Nonfood staples
23
Consumer chemical products . .
24
Consumer paper products
25
Consumer energy
26
Consumer fuel
27
Residential utilities
18.63
15.29
7.80
7.49
2.75
1.88
2.86
1.44
1.42
127.5
97.0
134.1
131.9
136.5
161.2
147.4
105.7
92.8
125.8
132.3
131.1
133.5
158.3
143.4
103.2
92.0
114.5
125.3
131.6
130.3
133.0
156.4
143.1
104.0
92.2
116.1
127.7
134.3
131.9
136.7
163.1
145.1
106.0
93.7
118.4
128.1
135.0
132.4
137.7
162.4
148.6
106.8
96.4
117.5
128.1
135.1
133.3
137.0
163.6
147.1
104.8
91.8
118.1
128.4
135.3
132.2
138.5
166.4
146.4
106.6
91.2
122.3
128.6
135.5
133.2
137.9
163.4
147.7
107.1
94.9
119.6
126.7
133.6
131.0
136.3
161.1
145.7
106.3
92.0
120.9
127.8
134.4
131.6
137.2
161.7
150.3
105.2
90.8
119.8
128.3
135.0
132.6
137.4
161.0
151.5
105.5
91.7
119.6
129.3
135.8
133.7
137.9
161.9
150.8
106.4
92.2
120.9
129.6
136.3
134.1
138.5
162.3
150.6
107.7
96.3
Equipment
28 Business and defense equipment
29
Business equipment
30
Construction, mining, and farm . .
31
Manufacturing
32
Power
33
Commercial
34
Transit
35
Defense and space equipment
18.01
14.34
2.08
3.27
1.27
5.22
2.49
3.67
147.1
138.6
59.8
112.0
81.6
214.6
109.2
180.3
147.8
140.5
63.0
112.9
82.3
216.8
111.7
176.3
145.5
137.7
59.5
112.4
82.0
214.3
104.3
176.2
146.6
138.6
58.6
111.9
83.0
213.4
112.1
178.0
146.0
137.9
60.9
111.9
82.9
212.9
107.3
178.0
145.1
136.6
61.9
111.7
83.5
208.2
108.8
178.4
146.4
137.9
60.6
112.6
81.7
214.5
103.9
179.5
147.8
139.3
58.3
113.3
81.7
217.5
106.9
181.0
148.0
139.3
58.1
113.0
80.3
215.1
113.3
182.0
148.4
139.1
58.0
112.7
80.5
215.4
111.8
184.6
148.1
138.6
56.6
109.6
79.5
217.3
110.7
184.9
147.0
137.1
57.2
108.7
79.8
214.1
108.9
185.8
147.5
137.5
56.0
109.0
79.1
216.0
108.5
186.5
5.95
6.99
5.67
1.31
124.7
146.4
150.6
128.3
122.6
142.6
146.7
124.9
122.6
142.5
146.4
125.6
123.6
143.8
148.0
125.8
123.5
145.0
148.3
130.7
124.1
147.9
151.6
131.9
124.0
148.6
153.3
128.3
125.4
148.4
152.5
130.6
125.9
146.4
151.2
125.8
126.3
149.3
154.1
128.8
126.8
149.7
153.7
132.4
128.1
149.7
154.2
130.5
130.0
150.2
154.7
130.6
130.2
20.50
4.92
5.94
9.64
4.64
119.7
98.5
153.9
109.4
80.0
121.3
103.2
153.0
111.0
83.0
119.3
99.9
153.7
108.0
79.6
120.2
99.3
154.8
109.4
82.9
118.4
96.4
152.3
108.8
78.9
117.8
96.3
151.8
107.9
76.7
118.8
96.7
154.3
108.2
77.4
118.8
95.2
155.6
108.1
76.9
118.9
95.3
154.8
108.8
78.4
119.2
97.0
153.5
109.4
78.8
120.4
98.0
154.5
110.7
82.1
120.8
98.9
154.6
111.1
80.5
120.7
100.3
154.4
110.3
78.6
120.8
99.8
154.3
110.8
45 Nondurable goods materials
46
Textile, paper, and chemical
materials
47
Textile materials
48
Pulp and paper materials
49
Chemical materials
50
Miscellaneous nondurable materials
10.09
118.3
116.1
114.8
116.5
116.5
117.7
118.9
119.7
120.6
120.3
120.2
122.6
122.7
123.2
7.53
1.52
1.55
4.46
2.57
118.9
110.6
132.1
117.1
116.5
116.5
107.5
128.8
115.4
115.0
115.5
105.7
128.0
114.5
112.8
115.9
106.7
129.0
114.5
118.2
116.9
108.4
128.6
115.7
115.3
118.2
109.5
132.7
116.1
116.4
119.0
111.2
135.6
115.9
118.3
120.5
113.4
136.0
117.5
117.2
121.8
116.0
133.7
119.7
117.1
121.3
114.3
133.5
119.5
117.5
121.0
115.6
134.2
118.5
117.6
124.0
115.2
137.4
122.3
118.5
124.1
113.0
137.7
123.2
118.5
124.7
51 Energy materials
52
Primary energy
53
Converted fuel materials
11.69
7.57
4.12
99.9
105.5
89.6
102.1
106.7
93.6
101.4
107.4
90.5
100.4
106.2
89.7
100.5
106.7
89.2
100.8
106.5
90.4
99.9
104.8
90.9
97.9
103.7
87.3
98.0
103.8
87.4
96.9
102.7
86.2
98.7
104.8
87.6
98.7
105.5
86.2
99.3
105.6
87.9
99.6
1 Total index
Consumer
goods
8 Durable consumer goods
9
Automotive products
10
Autos and trucks
11
Autos, consumer
12
Trucks, consumer
13
Auto parts and allied goods
14
Home goods
15
Appliances, A/C and TV
16
Appliances and TV
17
Carpeting and furniture
18
Miscellaneous home goods
Intermediate
products
36 Construction supplies
37 Business supplies
38
General business supplies
39
Commercial energy products
Materials
40 Durable goods materials
41
Durable consumer parts
42
Equipment parts
43
Durable materials n.e.c
44
Basic metal materials
121.1
120.4
143.1
129.7
136.4
138.4
148.7
138.9
109.1
78.7
215.9
115.2
187.2
A48
2.13
Domestic Nonfinancial Statistics • May 1987
INDUSTRIAL PRODUCTION Indexes and Gross Value—Continued
Grouping
SIC
code
1977
proportion
1986
1987
1986
avg.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov/
Dec.
Jan.?
Feb.'
Index (1977 = 100)
MAJOR INDUSTRY
1 Mining and utilities.
2
Mining
3
Utilities
4 Manufacturing
5
Nondurable
6
Durable
15.79
9.83
5.96
84.21
35.11
49.10
103.4
99.6
109.6
129.1
130.9
127.9
106.8
105.1
109.7
128.7
128.7
128.7
105.4
103.0
109.3
127.2
127.7
126.8
104.2
101.0
109.4
128.7
129.6
128.1
103.1
99.8
108.5
128.2
129.9
127.0
102.6
98.9
108.6
128.3
131.2
126.2
101.8
97.1
109.7
129.2
131.7
127.4
100.9
96.4
108.3
129.5
132.2
127.5
100.8
96.2
108.3
129.5
131.4
128.1
100.7
95.6
109.3
129.9
132.3
128.1
102.6
97.4
111.2
130.3
132.7
128.6
102.0
97.2
110.0
131.0
133.5
129.2
103.5
98.8
111.3
131.1
134.3
128.8
103.8
98.8
112.1
131.8
134.4
129.9
91.1
7
8
9
10
Mining
Metal
Coal
Oil and gas extraction . . .
Stone and earth minerals.
10
11.12
13
14
.50
1.60
7.07
.66
124.2
94.7
113.9
77.2
126.5
101.1
116.8
75.9
124.7
99.2
111.6
76.0
124.4
96.2
115.0
72.0
124.0
95.1
112.4
65.9
127.3
93.3
114.5
69.2
120.2
92.4
111.8
70.9
122.2
90.7
114.8
70.7
120.8
91.0
111.7
68.5
117.6
90.5
116.4
68.3
130.1
90.4
115.2
124.3
91.2
112.9
133.5
91.2
113.6
11
12
13
14
15
Nondurable
manufactures
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
20
21
22
23
26
7.96
.62
2.29
2.79
3.15
133.6
96.6
113.2
103.6
136.4
132.9
97.0
109.9
102.8
132.6
132.2
93.6
108.0
102.8
132.4
133.1
100.3
111.4
103.1
134.1
133.7
101.6
111.3
102.6
133.2
134.6
97.6
112.6
101.7
137.2
134.3
97.9
113.4
102.5
138.1
135.1
97.1
114.7
102.5
138.6
134.3
89.8
116.0
102.7
136.9
133.7
100.1
116.1
104.2
137.8
134.4
96.8
117.8
105.1
139.5
134.7
95.6
118.5
106.9
141.4
135.1
16
17
18
19
20
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products.
Leather and products
27
28
29
30
31
4.54
8.05
2.40
2.80
.53
163.4
133.0
92.1
153.3
61.3
156.7
132.0
90.1
151.1
64.8
157.8
130.2
88.6
147.8
62.7
161.6
132.8
91.3
146.8
61.5
161.9
131.5
95.7
150.1
59.5
164.0
134.2
91.8
152.2
57.9
165.4
134.1
90.6
155.5
61.9
164.6
134.4
94.0
155.5
62.0
163.0
133.9
93.3
154.9
59.4
167.8
133.9
91.1
157.6
60.2
168.5
132.3
92.0
159.0
61.3
167.6
134.2
92.6
159.6
59.5
169.5
135.9
96.0
159.5
59.0
24
25
32
2.30
1.27
2.72
123.4
146.7
120.2
120.3
143.2
119.3
120.7
142.9
120.0
121.3
145.9
121.6
121.6
146.2
120.2
120.9
147.1
120.8
120.8
149.5
119.6
122.5
148.3
119.7
125.0
147.7
121.6
125.9
149.2
118.1
129.5
148.6
120.6
132.9
150.2
121.7
148.2
123.0
33
331.2
34
35
36
5.33
3.49
6.46
9.54
7.15
75.8
63.4
107.4
141.9
166.5
80.3
69.5
108.5
143.9
164.8
76.3
64.3
107.6
141.7
165.2
78.1
65.6
108.2
140.8
166.8
74.8
60.2
106.5
141.3
166.0
71.4
58.3
106.6
140.4
163.2
73.6
61.7
105.7
142.6
166.8
73.4
60.8
105.9
142.6
167.2
74.1
61.1
107.3
140.9
166.9
74.2
62.2
108.3
142.2
167.7
76.8
64.8
107.1
141.2
168.3
73.7
60.5
108.4
140.3
170.2
72.4
58.4
108.7
139.4
168.5
108.9
140.1
168.7
37
371
9.13
5.25
125.8
110.9
127.5
116.4
122.6
108.1
126.2
112.6
124.1
108.7
125.1
110.6
125.6
111.2
125.1
108.2
127.7
112.2
125.2
107.1
125.6
107.9
127.2
111.2
127.9
112.1
131.7
118.0
372-6.9
38
39
3.87
2.66
1.46
146.1
141.3
99.3
142.6
141.9
100.9
142.4
142.0
99.0
144.8
142.4
99.2
145.0
140.3
101.0
144.7
139.9
98.3
145.2
141.7
97.5
148.0
142.0
98.3
148.7
141.7
97.7
149.7
140.3
99.0
149.6
141.1
98.9
148.9
142.0
102.6
149.4
142.0
102.1
150.2
142.4
4.17
122.2
119.5
119.8
121.6
121.7
123.1
125.4
122.4
122.8
123.8
125.1
123.6
125.3
Durable
manufactures
21 Lumber and products
22 Furniture and fixtures
23 Clay, glass, stone products.
24
25
26
27
28
Primary metals
Iron and steel
Fabricated metal products
Nonelectrical machinery . .
Electrical machinery
29 Transportation equipment
30
Motor vehicles and parts
31
Aerospace and miscellaneous
transportation equipment.
32 Instruments
33 Miscellaneous manufactures
Utilities
34 Electric.
117.3
107.3
141.0
170.0
94.0
73.2
Gross value (billions of 1982 dollars, annual rates)
MAJOR MARKET
35 Products, total
517.5 1,702.2 1,686.5 1,660.8 1,686.3 1,687.6 1,676.7 1,669.9 1,681.3 1,677.8 1,683.9 1,690.8 1,702.0 1,707.6 1,721.7
36 Final
37
Consumer goods
38
Equipment
39 Intermediate
405.7 1,314.5 1,310.3 1,282.5 1,307.0 1,301.1 1,289.5 1,282.7 1,292.6 1,292.3 1,292.5 1,297.6 1,306.4 1,313.3 1,329.3
272.7 853.8 845.3 832.0 852.3 852.4 843.8 842.4 846.9 839.8 839.3 847.2 860.7 864.4 871.2
133.0 458.2 465.1 450.4 454.7 448.7 445.7 440.4 445.7 452.5 453.2 450.4 445.7 448.9 458.1
111.9 387.6 376.2 378.3 379.3 386.4 387.2 387.1 388.7 385.5 391.4 393.2 395.5 394.3 392.4
• A major revision of the industrial production index and the capacity
utilization rates was released in July 1985. See "A Revision of the Index of
Industrial Production" and accompanying tables that contain revised indexes
( 1 9 7 7 = 1 0 0 ) t h r o u g h D e c e m b e r 1 9 8 4 i n t h e FEDERAL RESERVE B U L L E T I N , v o l . 71
(July 1985), pp. 487-501. The revised indexes for January through June 1985 were
shown in the September BULLETIN.
NOTE. These data also appear in the Board's G.12.3 (414) release. For address,
see inside front cover.
Selected Measures
2.14
A49
HOUSING AND CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1986
Item
1984
1985
1987
1986
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Private residential real estate activity (thousands of units)
N E W UNITS
1 Permits authorized
2
1-family
3
2-or-more-family
1,682
922
759
1,733
957
777
1,750
1,071
679
1,885
1,139
746
1,788
1,092
696
1,792
1,121
671
1,759
1,093
666
1,673
1,039
634
1,603
1,047
556
1,565
1,006
559
1,613
991
622
1,910
1,168
742
1,690
1,091
599
4 Started
5
1-family
6
2-or-more-family
1,749
1,084
665
1,742
1,072
669
1,805'
1,179
626
1,945
1,220
725
1,848
1,219
629
1,842
1,212
630
1,786
1,147
639
1,800
1,180
620
1,689
1,123
566
1,657
1,114
543
1,637
1,129
508
1,813'
1,233'
580'
1,804
1,247
557
7 Under construction, end of period 1
8
1-family
9
2-or-more-family
1,051
556
494
1,063
539
524
1,078'
586'
492'
1,131'
586'
545'
1,128'
595'
532'
1,147'
609'
537'
1,154'
620'
534'
1,163'
628'
534'
1,154
627
527
1,142
625
518'
1,125'
619'
506'
1,109'
613'
496'
1,099
614
484
1,652
1,025
627
1,703
1,072
631
1,756'
1,119'
637
1,703'
1,125'
578'
1,801'
1,130'
671'
1,644'
1,068'
576'
1,750'
1,074'
676'
1,757'
1,124'
633'
1,740'
1,113'
627'
1,745'
1,165'
580'
1,774'
1,158'
616'
1,888'
1,178'
71CK
1,884
1,183
701
296
284
244
251
239
232
238
231
243
241
237
251
236
639
358
688
350
748
366
883'
337'
777'
338'
723'
340
691'
350'
623'
352
744'
355
675'
357
691'
353'
765'
360
699
361
10 Completed
11
1-family
12
2-or-more-family
13 Mobile homes shipped
Merchant builder activity in 1-family
14 Number sold
15 Number for sale, end of period 1
Price (thousands
Median
Units sold
Average
17
Units sold
of
units
dollars)2
16
80.0
84.3
92.2'
92.5
92.1
91.2
94.1
91.5
95.0
96.4'
94.0'
94.5'
99.9
97.5
101.0
112.2'
110.3
114.6
110.9
116.8
113.2
114.0
114.9'
113.4'
119.1'
127.1
2,868
3,217
3,566
3,570
3,450
3,390
3,470
3,610
3,770
3,810
3,910
4,060
3,480
72.3
85.9
75.4
90.6
80.2
98.2
80.2
98.1
83.2
101.7
82.6
102.1
79.9
99.2
82.0
100.3
79.4
96.8
79.4
97.3
80.4
99.1
80.8
100.6
82.1
100.1
EXISTING U N I T S ( 1 - f a m i l y )
18 Number sold
Price of units sold (thousands
19 Median
20 Average
of
dollars)2
Value of new construction 3 (millions of dollars)
CONSTRUCTION
21 Total put in place
327,209 355,570 376,863' 373,904 374,483 375,397
22. Private
23
Residential
24
Nonresidential, total
Buildings
Industrial
25
26
Commercial
27
Other
28
Public utilities and other
271,973
155,148
116,825
292,792
158,818
133,974
13,746
48,100
12,547
42,432
15,769
59,626
12,619
45,960
55,232
2,839
16,343
4,654
31,396
62.777
3,283
19,998
4,952
34,544
29 Public
30
Military
31
Highway
32
Conservation and development
33
Other
380,722
382,603 382,581
384,317
378,444 374,903
378,475
305,929' 303,320 302,573
174,596' 170,520 172,491
131,333' 132,800 130.082
304,567
174,478
130,089
309,003
178,821
130,182
310,155
178,761
131,394
308,617
178,480
130,137
310,704
181,858
128,846
308,609 303,751
182,154 178,623
126,455 125,128
303,236
180,690
122,546
13,653'
52,084'
13,433'
52,163'
14,557
59,763
13,006
45,474
13,658
57,368
13,131
45,925
13,027
57,443
13,263
46,356
12,866
58,132
13,277
45,907
12,543
60,054
13,315
45,482
13,180
58,001
14,001
44,955
12,948
56,273
14,341
45,284
13,428
54,834
13,956
44,237
12,739
54,253
13,833
44,303
12,105
51,723
14,015
44,703
70,932'
3,847'
21,260'
4,853'
40,972'
70,583
3,725
23,155
4,947
38,756
71,910
3,637
23,240
4,729
40,304
70,830
3,761
22,001
4,657
40,411
71,719
3,553
21,603
4,415
42,148
72,448
4,132
21,607
4,294
42,415
73,964
5,050
20,552
4,841
43,521
73,613
3,695
20,465
6,425
43,028
69,836
3,722
18,371
4,635
43,108
71,152
3,847
18,932
5,159
43,214
75,238
3,550
23,818
5,041
42,829
1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly
comparable with data in prior periods because of changes by the Bureau of the
Census in its estimating techniques. For a description of these changes see
Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
NOTE. Census Bureau estimates for all series except (a) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing
Institute and seasonally adjusted by the Census Bureau, and (b) sales and prices of
existing units, which are published by the National Association of Realtors. All
back and current figures are available from originating agency. Permit authorizations are those reported to the Census Bureau from 16,000 jurisdictions beginning
with 1978.
A50
2.15
Domestic Nonfinancial Statistics • May 1987
C O N S U M E R A N D PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Change from 3 months earlier
(at annual rate)
Item
Change from 1 month earlier
1986
1986
Feb.
1986
Index
level
Feb.
1987
(1967
= 100)1
1987
1987
Feb.
Mar.
June
Sept.
Dec.
Oct.
Nov.
Dec.
Jan.
Feb.
C O N S U M E R PRICES 2
All items
3.2
2.1
-1.3
1.6
2.0
2.5
.2
.2
1.9
-.6
4.1
1.4
5.8
4.7
-12.2
3.8
1.6
5.0
-.9
-32.3
4.4
1.2
6.5
3.9
-12.6
3.3
.3
4.9
8.4
-21.0
3.7
2.6
4.3
4.1
-9.9
3.7
1.4
5.1
.4
-1.9
.4
.1
.6
.4
-.5
.3
.1
.4
_
7 Finished goods
8
Consumer foods
9
Consumer energy
10
Other consumer goods
11
Capital equipment
-.2
-1.3
-9.1
2.2
1.7
.1
2.8
-20.9
2.6
2.0
-10.5
-7.6
-62.9
4.1
1.1
.7
8.2
-20.7
.9
2.4
-.4
11.2
-42.7
2.3
2.0
1.1
1.1
-18.4
4.1
3.3
.3
.9'
-3.7'
.7'
.4
.0'
-.2'
-.4'
->r
.4'
-.1
-.4
-.9
.1
.1
12 Intermediate materials 3
13
Excluding energy
-1.5
-.4
-1.5
.9
-9.8
-.7
-5.1
-1.2
-1.5
1.5
-1.2
1.1
-.3
.2
.0
.1
-9.1
-12.1
-3.4
.9
-11.6
3.3
-22.6
-51.3
25.9
5.9
-29.1
6.6
18.1
-19.6
-24.1
-3.8
-10.4
8.0
1
2 Food
3 Energy items
4 All items less food and energy
5
Commodities
6
Services
.2
.7
.4
334.4
.2
i
.2
.1
.3
.4
3.0
.5
.6
.5
.3
1.9
.3
.0
.4
330.1
359.2
334.5
265.7
408.9
.6
-1.8
9.8'
.5
.2
.1
-.5
4.0
-.3
-.3
292.3
279.6
497.9
262.6
310.5
PRODUCER PRICES
14
15
16
Crude materials
Foods
Energy
Other
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers and reflect a
rental equivalence measure of homeownership after 1982.
2.1'
.1'
1.1
-1.9'
.2'
.7
.0
.0
1.0
.4
.5
.2
314.8
307.0
-1.2
-3.0
.1
-3.0
10.0
.5
.0
2.6
4.4
229.2
586.2
254.6
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.
Selected Measures
2.16
A51
GROSS NATIONAL PRODUCT AND INCOME
Billions o f current dollars e x c e p t a s n o t e d ; quarterly data are at s e a s o n a l l y a d j u s t e d annual rates.
1985
Account
1984
1985
1986
1986'
Q4
Q1
Q2
Q3
Q4'
GROSS N A T I O N A L PRODUCT
1 Total
3,765.0
3,998.1
4,206.1
4,087.7
4,149.2
4,175.6
4,240.7
4,258.7
2,428.2
331.2
870.1
1,227.0
2,600.5
359.3
905.1
1,336.1
2,762.5
388.1
932.7
1,441.7
2,667.9
362.0
922.6
1,383.2
2,697.9
360.8
929.7
1,407.4
2,732.0
373.9
928.4
1,429.8
2,799.8
414.5
932.8
1,452.4
2,820.4
403.1
940.1
1,477.2
662.1
598.0
416.5
139.3
277.3
181.4
661.1
650.0
458.2
154.8
303.4
191.8
683.6
677.0
460.0
143.3
316.7
217.0
669.5
672.6
474.0
157.2
316.8
198.6
708.3
664.4
459.2
154.6
304.6
205.3
687.3
672.8
457.5
141.5
316.0
215.3
675.8
680.3
459.0
139.5
319.5
221.3
663.2
690.3
464.3
137.5
326.8
226.0
64.1
56.6
11.1
12.2
6.7
7.7
-3.1
16.7
43.8
41.2
14.5
10.5
-4.5
-10.3
-27.1
-10.8
14 Net exports of goods and services
15
Exports
16
Imports
-58.7
382.7
441.4
-78.9
369.8
448.6
-104.3
373.0
477.3
-105.3
368.2
473.6
-93.7
374.8
468.5
-104.5
363.0
467.5
-108.9
370.8
479.7
-110.2
383.5
493.7
17 Government purchases of goods and services
18
Federal
19
State and local
733.4
311.3
422.2
815.4
354.1
461.3
864.2
366.2
498.0
855.6
380.9
474.7
836.7
355.7
480.9
860.8
367.6
493.3
874.0
369.3
504.7
885.3
372.1
513.2
3,700.9
1,576.7
675.0
901.7
1,813.1
375.1
3,987.0
1,630.2
700.2
930.0
1,959.8
408.1
4,199.4
1,670.5
716.8
953.7
2,105.6
430.0
4,090.8
1,644.1
709.1
935.0
2,025.5
418.1
4,105.4
1,669.0
710.6
958.4
2,057.7
422.6
4,161.2
1,661.6
703.1
958.5
2,087.4
426.7
4,245.2
1,680.2
730.1
950.1
2,125.2
435.3
4,285.8
1,671.3
723.5
947.8
2,152.1
435.3
64.1
39.2
24.9
11.1
6.6
4.5
6.7
-1.0
7.7
-3.1
9.5
-12.7
43.8
28.6
15.3
14.5
-.1
14.6
-4.5
-15.6
11.1
-27.1
-16.9
-10.2
3,489.9
3,585.2
3,674.9
3,622.3
3,655.9
3,661.4
3,686.4
3,696.1
30
3,032.0
3,222.3
3,386.2
3,287.3
3,340.7
3,376.4
3,396.1
3,431.5
31 Compensation of employees
37
Wages and salaries
33
Government and government enterprises
34
Other
35
Supplement to wages and salaries
Employer contributions for social insurance
36
37
Other labor income
2,214.7
1,837.0
346.2
1,490.6
377.7
193.1
184.5
2,368.2
1,965.8
372.2
1,593.9
402.4
205.5
196.9
2,498.0
2,073.5
395.7
1,677.8
424.5
215.7
208.8
2,423.6
2,012.8
381.6
1,631.1
410.9
209.1
201.7
2,461.5
2,044.1
387.2
1,656.8
417.4
212.9
204.5
2,480.2
2,058.8
392.5
1,666.3
421.3
214.1
207.3
2,507.4
2,081.1
398.4
1,682.7
426.3
215.9
210.4
2,542.8
2,109.8
404.4
1,705.4
433.0
220.1
213.0
236.9
205.3
31.5
254.4
225.2
29.2
278.8
252.7
26.1
262.1
232.7
29.4
265.3
240.9
24.4
289.1
249.6
39.5
277.5
258.0
19.6
283.2
262.2
21.0
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
2
3
4
5
6 Gross private domestic investment
7
Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures
12
13
?«
?1
??
73
?4
25
Change in business inventories
Nonfarm
By major type of product
Final sales, total
Goods
Durable
Nondurable
Services
Structures
26 Change in business inventories
27
Durable goods
Nondurable goods
28
29 MEMO: Total GNP in 1982 dollars
N A T I O N A L INCOME
38 Proprietors' income 1
39
Business and professional 1
40
Farm1
41 Rental income of persons 2
8.3
7.6
15.0
8.3
12.8
16.3
16.2
14.8
47 Corporate profits1
43
Profits before tax3
44
Inventory valuation adjustment
45
Capital consumption adjustment
264.7
235.7
-5.5
34.5
280.7
223.2
-.6
58.1
299.7
237.4
6.5
56.6
285.6
235.8
-9.4
59.2
296.4
222.5
16.5
57.3
293.1
227.7
10.6
54.8
302.0
240.4
6.1
55.5
310.4
258.8
-7.2
58.8
46 Net interest
307.4
311.4
294.0
307.6
304.9
297.7
292.9
280.4
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).
A52
2.17
Domestic Nonfinancial Statistics • May 1987
PERSONAL INCOME AND SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1986
1985
Account
1985
1984
1986'
Q4
Ql
Q2
Q3
Q4
PERSONAL INCOME A N D SAVING
1 Total personal income
3,110.2
3,314.5
3,485.7
3,382.9
3,432.6
3,483.3
3,498.8
3,527.9'
2 Wage and salary disbursements
3
Commodity-producing industries
4
Manufacturing
5
Distributive industries
6
Service industries
7
Government and government enterprises
1,836.8
577.8
439.1
442.2
470.6
346.2
1,966.1
607.7
460.1
469.8
516.4
372.2
2,073.5
623.2
471.2
487.9
566.7
395.7
2,012.8
617.7
467.5
478.9
534.6
381.6
2,044.1
622.0
470.5
485.2
549.6
387.2
2,058.8
620.8
468.8
484.3
561.3
392.5
2,081.1
621.8
470.0
488.3
572.6
398.4
2,109.8
628.3
475.4
493.9'
583.2'
404.4
184.5
236.9
205.3
31.5
8.3
74.7
446.9
455.6
235.7
196.9
254.4
225.2
29.2
7.6
76.4
476.2
487.1
253.4
208.8
278.8
252.7
26.1
15.0
81.2
475.0
513.8
266.8
201.7
262.1
232.7
29.4
8.3
76.7
480.6
493.6
256.8
204.5
265.3
240.9
24.4
12.8
79.1
480.8
504.7
263.2
207.3
289.1
249.6
39.5
16.3
81.1
480.1
510.1
264.1
210.4
277.5
258.0
19.6
16.2
82.0
473.8
518.5
269.6
213.0
283.2'
262.2
21.0'
14.8
82.7
465.2
521.8'
270.2
8
9
10
11
12
13
14
15
16
17
Other labor income
Proprietors' income 1
Business and professional 1
Farm1
Rental income of persons 2
Dividends
Personal interest income
Transfer payments
O l d - a g e survivors, disability, and health insurance b e n e f i t s . . .
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
133.5
150.2
160.3
152.9
158.6
159.5
160.8
3,110.2
3,314.5
3,485.7
3,382.9
3,432.6
3,483.3
3,498.8
162.4
3,527.9'
439.6
486.5
514.1
500.7
497.5
504.8
519.0
20 EQUALS: Disposable personal income
2,670.6
2,828.0
2,971.6
2,882.2
2,935.1
2,978.5
2,979.9
2,993.(K
21
LESS: Personal outlays
2,501.9
2,684.7
2,857.4
2,756.4
2,789.4
2,825.5
2,895.8
2,918.8'
22 EQUALS: Personal saving
168.7
143.3
114.1
125.8
145.6
153.1
84.1
74.2'
14,721.1
9,475.4
10,421.0
6.3
14,982.0
9,713.7
10,563.0
5.1
15,216.9
10,015.3
10,773.0
3.8
15,079.9
9,790.3
10,577.0
4.4
15,188.0
9,857.1
10,723.0
5.0
15,178.9
9,984.4
10,886.0
5.1
15,245.6
10,124.0
10,776.0
2.8
15,247.9'
10,089.9'
10,708.0'
2.5
573.3
551.5
538.6
524.1
583.2
539.7
517.2
514.1
674.8
168.7
91.0
-5.5
687.8
143.3
107.3
-.6
678.9
114.1
109.3
6.5
679.2
125.8
106.8
-9.4
708.3
145.6
115.5
16.5
713.0
153.1
106.6
10.6
650.5
84.1
108.8
6.1
644.0
74.2'
106.1
-7.2
253.9
161.2
.0
268.2
169.0'
280.3
175.1
.0
273.3
173.4
.0
275.3
171.8
.0
278.9
174.4
.0
281.6
176.0
.0
285.5'
178.2'
.0
-101.5
-170.0
68.5
-136.3'
-198.0
61.7
-140.4
-203.4
63.0
-155.1
-217.6
62.5
-125.1
-195.0
69.9
-173.3
-232.2
58.9
-133.3
-197.4
64.0
19
LESS: Personal tax and nontax payments
534.9
MEMO
Per capita (1982 dollars)
23
Gross national product
24
Personal consumption expenditures
25
Disposable personal income
26 Saving rate (percent)
GROSS S A V I N G
28
29
30
31
Gross private saving
Personal saving
Undistributed corporate profits 1
Corporate inventory valuation adjustment
Capital consumption
allowances
32 Corporate
33 Noncorporate
34 Wage accruals less disbursements
35 Government surplus, or deficit ( - ) , national income and
product accounts
36
Federal
37
State and local
.ty
-129.8
-189.2
59.4
.0
.0
.0
.0
.0
.0
.0
39 Gross investment
571.4
545.9
541.7
525.7
579.6
544.3
527.5
515.5'
40 Gross private domestic
41 Net foreign
662.1
-90.7
661.1
-115.2
683.6
-141.9
669.5
-143.8
708.3
-128.6
687.3
-143.0
675.8
-148.3
663.2'
-147.7'
-1.9
-5.5
3.2
1.6
-3.6
4.6
10.3
1.3'
38 Capital grants received by the United States, net
42 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capita] consumption adjustment.
SOURCE. Survey of Current Business
(Department of Commerce).
.0
Summary Statistics
3.10
U.S. INTERNATIONAL TRANSACTIONS
A53
Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted. 1
1986
Item credits or debits
Q4
1 Balance o n current account
2
N o t seasonally adjusted
3
4
5
6
7
8
9
10
Merchandise trade balance 2
Merchandise exports
Merchandise imports
Military transactions, net
Investment i n c o m e , net 3
Other service transactions, net
Remittances, pensions, and other transfers
U . S . government grants (excluding military)
11 Change in U . S . government assets, other than official
reserve assets, net (increase, - )
QK
Q2R
Q3'
Q4 p
-106,466
117,677
-140,569
-33,695
-31,510
-34,040
-31,020
-34,397
-35,458
-35,299
-39,245
-36,837
-34,847
-112,522
219,900
-332,422
-1,827
18,751
1,288
-124,439
214,424
-338,863
-2,917
25,188
-525
-147,708
221,753
-369,461
-2,402
22,865
1,821
-37,352
52,727
-90,079
-1,322
9,255
-32
-36,489
53,588
-90,077
-1,066
6,500
6
-35,700
55,075
-90,775
-695
5,328
717
-37,149
55,764
-92,913
-570
6,146
437
-38,370
57,326
-95,696
-71
4,890
659
-3,621
-8,536
-3,787
-11,196
-3,320
-11,825
-937
-3,307
-922
-2,069
-802
-3,245
-744
-3,419
-853
-3,092
-5,523
-2,824
-1,978
-540
-250
-209
12 Change in U . S . official reserve assets (increase, - )
13
Gold
14
Special drawing rights ( S D R s )
15
Reserve position in International Monetary Fund
16
Foreign currencies
-3,130
312
-3,148
-115
16
280
132
-979
-995
-1,156
-3,858
0
-897
908
-3,869
-246
1,501
-942
-189
168
-3,126
-274
344
-185
-104
366
-246
163
508
-391
-31
283
-120
17 Change in U . S . private assets abroad (increase, - ) 3
18
Bank-reported claims
19
Nonbank-reported claims
20
U . S . purchase of foreign securities, net
21
U . S . direct investments abroad, net 3
-14,987
-11,127
5,081
-5,082
-3,859
-25,754
-691
1,665
-7,977
-18,752
-98,149
-57,312
-4,150
-4,765
-31,922
-19,579
-8,485
418
-1,411
-10,101
-12,644
6,333
-2,842
-6,133
-10,002
-25,468
-14,387
-1,220
-1,664
-8,197
-27,052
-19,326
-32,985
-29,932
349
-7,987
2,683
-5,736
22 Change in foreign official assets in the United States
(increase, + )
23
U . S . Treasury securities
24
Other U . S . government obligations
25
Other U . S . government liabilities 4
26
Other U . S . liabilities reported by U . S . banks
27
Other foreign official assets 5
3,037
4,690
13
436
555
-2,657
-1,324
-546
-295
483
522
-1,488
33,394
34,495
-1,214
1,067
-126
-828
-1,322
-1,976
-171
263
722
-160
2,469
3,256
-177
288
-1,261
363
14,704
14,538
-644
679
662
-531
15,448
12,193
-276
900
2,933
-302
774
4,508
-117
-799
-2,460
-358
28 Change in foreign private assets in the United States
(increase, + ) 3
29
U . S . bank-reported liabilities
30
U . S . nonbank-reported liabilities
31
Foreign private purchases of U . S . Treasury securities, net
32
Foreign purchases of other U . S . securities, net
33
Foreign direct investments in the United States, net 3
99,730
33,849
4,704
23,059
12,759
25,359
128,430
40,387
-1,172
20,500
50,859
17,856
179,900
77,435
-3,112
9,334
70,658
25,585
53,158
20,427
2,232
5,676
22,441
2,382
34,151
8,434
-2,057
7,666
18,686
1,422
32,822
3,553
-1,644
3,807
23,018
4,088
54,075
30,128
589
541
17,185
5,632
58,851
35,320
34 Allocation of S D R s
35 Discrepancy
36
Owing to seasonal adjustments
37
Statistical discrepancy in recorded data before seasonal
adjustment
0
0
0
0
0
27,338
23,006
27,091
27,338
23,006
27,091
0
0
5,125
3,771
0
0
10,429
1,329
0
0
12,532
-1,410
9,100
-91
0
0
-88
0
-2,680
11,769
14,442
0
-6,023
-3,956
10,156
4,040
-2,068
6,116
MEMO
Changes in official assets
U . S . official reserve assets (increase, - )
Foreign official assets in the United States
(increase, + )
40 Change in Organization of Petroleum Exporting Countries
official assets in the United States (part of line 22
above)
41 Transfers under military grant programs (excluded from
lines 4, 6, and 10 above)
38
39
1. Seasonal factors are not calculated for lines
38-41.
2. Data are on an international accounts (IA)
basis data, shown in table 3.11, for reasons of
exports are excluded from merchandise data and
3. Includes reinvested earnings.
-3,130
-3,858
312
-3,148
-115
16
280
132
2,601
-1,807
32,327
-1,585
2,181
14,025
14,548
1,573
-4,304
-6,599
-8,649
-1,002
1,421
-1,938
-2,847
-5,285
190
64
73
28
22
19
19
6, 10, 12-16, 18-20, 22-34, and
basis. Differs from the Census
coverage and timing; military
are included in line 6.
12
4. Primarily associated with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U . S . corporate stocks and in debt securities of
private corporations and state and local governments.
NOTE. Data are from Bureau of E c o n o m i c Analysis. Survey of Current
Business
(Department of Commerce).
A54
3.11
International Statistics • May 1987
U.S. FOREIGN TRADE
Millions of dollars; monthly data are not seasonally adjusted.
1986
Item
1983
1987
1985
1984
Aug.
July
1
EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments
200,486
217,865
213,146
17,707
Oct.
Sept.
17,604
17,518
Nov.
19,330r
Dec.
18,595
Jan.
18,431
16,384
2
G E N E R A L IMPORTS including merchandise for immediate consumption plus entries into bonded
warehouses
258,048
325,726
345,276
34,121
29,476
28,695
30,018
36,187
27,795
29,805
3
Trade balance
-57,562
107,861
-132,129
-16,414
-11,871
-11,177
-10,688
-17,592
-9,364
-13,421
NOTE. The data through 1981 in this table are reported by the Bureau of Census
data of a free-alongside-ship (f.a.s.) value basis—that is, value at the port of
export. Beginning in 1981, foreign trade of the U.S. Virgin Islands is included in
the Census basis trade data; this adjustment has been made for all data shown in
the table. Beginning with 1982 data, the value of imports are on a customs
valuation basis.
The Census basis data differ from merchandise trade data shown in table 3.10,
U . S . International Transactions Summary, for reasons of coverage and timing. On
3.12
the export side, the largest adjustments are: (1) the addition of exports to Canada
not covered in Census statistics, and (2) the exclusion of military sales (which are
combined with other military transactions and reported separately in the "service
account" in table 3.10, line 6). On the import side, additions are made for gold,
ship purchases, imports of electricity from Canada, and other transactions;
military payments are excluded and shown separately as indicated above.
SOURCE. FT900 "Summary of U . S . Export and Import Merchandise Trade"
(Department of Commerce, Bureau of the Census).
U.S. RESERVE ASSETS
Millions of dollars, end of period
1987
1986
Type
1984
1983
1985
Sept.
Aug.
Dec.
Feb.
Jan.
47,824
48,427
49,348
49,360
11,084
11,066
11,070
11,064
11,062
11,085
8,295
8,090
8,310
8,395
8,470
8,615
12,017
11,922
11,575
11,659
11,730
11,872'
11,701
16,810
16,786r
16,358
16,785
17,328 r
17,982
17,959
Total
33,747
34,934
43,191
48,161
48,087
Gold stock, including Exchange Stabilization Fund 1
11,121
11,096
11,090
11,084
3
Special drawing rights 2,3
5,025
5,641
7,293
8,250
4
Reserve position in International Monetary Fund 2
11,312
11,541
11,952
5
Foreign currencies 4
6,289
6,656
12,856
3.13
r
47,089
1
2
1. Gold held under earmark at Federal Reserve Banks for foreign and international accounts is not included in the gold stock of the United States; see table
3.13. Gold stock is valued at $42.22 per fine troy ounce.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of member countries.
From July 1974 through December 1980, 16 currencies were used; from January
1981, 5 currencies have been used. The U.S. SDR holdings and reserve position in
the IMF also are valued on this basis beginning July 1974.
Nov.
Oct.
3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus transactions in SDRs.
4. Valued at current market exchange rates.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1987
1986
Assets
1984
1983
1985
Aug.
1 Deposits
Assets held in custody
2 U.S. Treasury securities 1
3 Earmarked gold 2
Oct.
Nov.
Dec.
Feb.' 7
Jan.
190
267
480
227
342
303
224
287
226
255
117,670
14,414
118,000
14,242
121,004
14,245
148,263
14,120
152,275
14,115
156,076
14,110
156,919
14,057
155,835
14,048
159,597
14,041
160,942
14,046
1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies.
2. Earmarked gold is valued at $42.22 per fine troy ounce.
Sept.
NOTE. Excludes deposits and U.S. Treasury securities held for international
and regional organizations. Earmarked gold is gold held for foreign and international accounts and is not included in the gold stock of the United States.
Summary Statistics
3.14
FOREIGN BRANCHES OF U.S. BANKS
A55
Balance Sheet Data'
M i l l i o n s o f dollars, e n d o f p e r i o d
1987
1986
1983
Asset account
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.P
446,581
446,612'
456,627
458,075
113,176
81,984
13,685
17,507
314,341
97,788
105,238
23,520
87,795
115,264
83,181
12,723
19,360
311,247
93,241
105,399
23,328
89,279
29,110
31,564
All foreign countries
7 Claims on United States
Parent bank
4
Other banks in United States 2
5
Nonbanks 2
6 Claims on foreigners
7
Other branches of parent bank
8
Banks
9
Public borrowers
Nonbank foreigners
10
1
11 Other assets
12 Total payable in U.S. dollars
N
14
15
16
17
18
19
70
21
Claims on United States
Parent bank
Other banks in United States 2
Nonbanks 2
Claims on foreigners
Other branches of parent bank
Banks
Public borrowers
Nonbank foreigners
453,656
458,012
454,886
342,689
96,004
117,668
24,517
107,785
113,393
78,109
13,664
21,620
320,162
95,184
100,397
23,343
101,238
119,713
87,201
13,057
19,455
315,680
91,399
102,960
23,478
97,843
113,474
79,387
13,527
20,560
314,354
92,641
103,095
23,578
95,040
117,661
83,779
13,072
20,810
315,583
93,435
102,849
23,720
95,579
116,392
82,302
13,624
20,466
328,553
103,278
107,503
23,505
94,267
112,078
79,999
11,659
20,420
305,562
90,412
100,707
24,215
90,228
108,420^
76,262'
11,904
20,254
308,393
91,570
103,292
23,357
90,174
18,859
20,101
22,619
27,058
28,196
29,622
28,941
29,799
371,508
350,636
336,288
313,703
318,375
330,597
309,087
306,690'
317,485
309,719
113,436
80,909
247,406
78,431
93,332
17,890
60,977
111,426
77,229
13,500
20,697
228,600
78,746
76,940
17,626
55,288
116,645
85,971
12,454
18,220
209,905
72,689
71,748
17,252
48,216
109,263
78,025
12,373
18,865
194,102
69,135
65,033
16,684
43,250
113,636
82,261
12,180
19,195
194,643
68,604
64,940
16,788
44,311
112,133
80,753
12,802
18,578
207,701
78,400
68,596
16,521
44,184
107,612
78,335
10,544
18,733
190,030
67,835
62,836
17,455
41,904
104,281'
74,762'
10,986
18,533
190,663
67,835
64,919
16,821
41,088
109,233
80,574
12,830
15,829
196,448
73,704
66,421
16,586
39,737
110,596
81,423
11,531
17,642
187,296
67,479
63,637
16,459
39,721
10,666
10,610
9,738
10,338
10,096
10,763
11,445
11,746
11,804
11,827
477,090
1 Total, all currencies
115,542
82,026
1
22 Other assets
461,440
474,567
United Kingdom
23 Total, all currencies
74 Claims on United States
75
Parent bank
76
Other banks in United States 2
Nonbanks 2
77
78 Claims on foreigners
79
Other branches of parent bank
30
Banks
31
Public borrowers
Nonbank foreigners
32
144,385
148,599
145,448
145,619
151,596
142,398
143,800
140,917
144,093
34,433
29,111
27,675
21,862
1,429
4,384
111,828
37,953
37,443
5,334
31,098
33,157
26,970
1,106
5,081
110,217
31,576
39,250
5,644
33,747
30,223
24,252
1,369
4,602
108,156
31,613
38,393
5,229
32,921
29,839
23,466
1,448
4,925
109,024
31,828
38,048
5,336
33,812
30,879
24,291
2,092
4,496
113,368
34,678
40,204
5,086
33,400
30,747
24,800
1,314
4,633
105,534
31,268
37,836
5,157
31,273
28,940
22,671
1,534
4,735
108,147
29,960
41,145
5,038
32,004
24,599
19,085
1,612
3,902
109.508
33,422
39,468
4.990
31,628
28,720
23,330
1,220
4,170
108,720
30,218
40,677
4,942
32,883
119,280
36,565
43,352
5,898
33,465
33 Other assets
34 Total payable in U.S. dollars
35 Claims on United States
36
Parent bank
37
Other banks in United States 2
38
Nonbanks 2
39 Claims on foreigners
40
Other branches of parent bank
41
47
Public borrowers
Nonbank foreigners
43
158,732
-I
44 Other assets
5,019
4,882
5,225
7,069
6,756
7,349
6,117
6,713
6,810
6,653
126,012
112,809
108,626
97,641
97,771
103,228
97,295
97,119
95,028
95,359
33,756
28,756
88,917
31,838
32,188
4,194
20,697
26,868
21,495
1,363
4,010
82,945
33,607
26,805
4,030
18,503
32,092
26,568
1,005
4,519
73,475
26,011
26,139
3,999
17,326
28,848
23,888
1,131
3,829
65,472
24,258
21,938
3,793
15,483
28,446
22,972
1,194
4,280
66,465
24,657
21,636
3,838
16,334
29,512
23,826
1,848
3,838
70,325
27,151
22,917
3,778
16,479
29,312
24,323
1,110
3,879
64,873
24,632
21,011
3,859
15,371
27,564
22,106
1,364
4,094
66,298
23,223
24,020
3,811
15,244
23,193
18,526
1,475
3,192
68,138
26,361
23,251
3,677
14,849
27,070
22,673
996
3,401
65,022
22,720
23,656
3,683
14,963
3,339
2,996
3,059
3,321
2,860
3,391
3,110
3,257
3,697
3,267
^ ^
Bahamas and Caymans
45 Total, all currencies
46 Claims on United States
Parent bank
47
48
Other banks in United States 2
49
Nonbanks 2
50 Claims on foreigners
51
Other branches of parent bank
57
Banks
53
Public borrowers
54
Nonbank foreigners
55 Other assets
56 Total payable in U.S. dollars
152,083
75,309
48,720
1
72,868
20,626
36,842
6,093
12,592
146,811
142,055
134,238
137,526
143,082
134,060
131,363'
142,592
135,627
77,296
49,449
11,544
16,303
65,598
17,661
30,246
6,089
11,602
74,864
50,553
11,204
13,107
63,882
19,042
28,192
6,458
10,190
69,812
43,867
11,201
14,744
60,363
16,682
27,160
6,551
9,970
73,047
47,694
10,813
14,540
60,167
16,539
27,065
6,675
9,888
71,918
46,635
10,641
14,652
66,610
22,763
27,779
6,434
9,634
68,624
44,476
9,557
14,591
59,612
16,985
26,205
7,263
9,159
66,078'
42,223'
9,628
14,227
59,436
18,139
25,743
6,697
8,857
76,663
53,068
11,156
12,439
61,390
18,803
27,476
6,929
8,182
72,643
48,036
10,625
13,982
57,825
16,258
26,366
7,026
8,175
3,906
3,917
3,309
4,063
4,312
4,544
5,824
5,849
4,539
5,159
145,641
141,562
136,794
127,910
130,723
136,615
127,361
124,801'
136,813
129,474
1. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
2. Data for assets vis-a-vis other banks in the United States and vis-a-vis
nonbanks are combined for dates before June 1984.
A56
3.14
International Statistics • May 1987
Continued
1986
1987
Liability account
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.?
All foreign countries
57 Total, all currencies
477,090
453,656
458,012
454,886
461,440
474,567
446,581
446,612'
456,627
458,075
58 Negotiable CDs 3
59 To United States
Parent bank
60
61
Other banks in United States
Nonbanks
62
n.a.
188,070
81,261
29,453
77,356
37,725
147,583
78,739
18,409
50,435
34,607
155,538
83,914
16,894
54,730
32,656
141,599
81,299
14,191
46,109
31,475
145,488
79,564
15,151
50,773
33,642
151,281
87,927
14,153
49,201
32,444
141,126
75,777
14,791
50,558
32,926
137,158'
75,062'
14,661
47,435'
31,629
151,606
82,535
15,650
53,421
33,395
140,029
70,250
15,068
54,711
63 To foreigners
64
Other branches of parent bank
65
Banks
66
Official institutions
67
Nonbank foreigners
68 Other liabilities
269,685
90,615
92,889
18,896
68,845
19,335
247,907
93,909
78,203
20,281
55,514
20,441
245,942
89,529
76,814
19,523
60,076
21,925
259,133
91,144
82,854
20,608
64,527
21,498
262,978
91,307
85,239
20,637
65,795
21,499
269,322
102,245
81,953
20,109
65,015
20,322
253,202
87,883
80,709
19,436
65,174
19,809
256,476
87,853
83,655
18,831
66,137
20,052
253,775
95,146
77,806
17,835
62,988
19,617
264,332
90,331
89,168
19,484
65,349
20,319
69 Total payable in U.S. dollars
388,291
367,145
353,470
330,183
333,581
349,259
323,699
319,942'
336,406
323,907
70 Negotiable CDs 3
71 To United States
Parent bank
72
73
Other banks in United States
74
Nonbanks
n.a.
184,305
79,035
28,936
76,334
35,227
143,571
76,254
17,935
49,382
31,063
150,161
80,888
16,264
53,009
28,970
133,908
77,048
13,507
43,353
28,091
137,805
75,391
14,364
48,050
30,560
143,627
83,790
13,173
46,664
29,206
133,301
71,858
13,768
47,675
29,752
129,353'
71,017'
13,808
44,528'
28,466
143,626
78,448
14,613
50,565
29,921
131,521
65,633
14,047
51,841
75 To foreigners
76
Other branches of parent bank
77
Banks
78
Official institutions
Nonbank foreigners
79
80 Other liabilities
194,139
73,522
57,022
13,855
51,260
9,847
178,260
77,770
45,123
15,773
39,594
10,087
163.361
70,943
37,323
14,354
40,741
8,885
158,314
68,065
34,827
14,091
41,331
8,991
158,931
66,878
36,460
14,125
41,468
8,754
167,356
77,464
35,358
13,697
40,837
7,716
153,536
65,077
33,802
13,320
41,337
7,656
153,437
63,638
35,177
13,139
41,483
7,400
156,806
71,181
33,847
12,371
39,407
7,508
155,225
64,415
37,167
13,688
39,955
7,240
United Kingdom
158,732
144,385
148,599
145,448
145,619
151,596
142,398
143,800
140,917
144,093
82 Negotiable CDs 3
83 To United States
84
Parent bank
85
Other banks in United States
Nonbanks
86
n.a.
55,799
14,021
11,328
30,450
34,413
25,250
14,651
3,125
7,474
31,260
29,422
19,330
2,974
7,118
29,295
22,671
13,300
1,999
7,372
28,279
22,831
14,188
2,148
6,495
30,352
26,540
17,399
2,062
7,079
28,847
24,610
14,014
2,382
8,214
28,984
22,714
13,811
2,313
6,590
27,781
24,657
14,469
2,649
7,539
29,432
19,465
10,004
2,154
7,307
87 To foreigners
88
Other branches of parent bank
89
Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities
95,847
19,038
41,624
10,151
25,034
7,086
77,424
21,631
30,436
10,154
15,203
7,298
78,525
23,389
28,581
9,676
16,879
9,392
83,707
25,106
31,678
9,074
17,849
9,775
84,880
24,962
32,250
9,330
18,338
9,629
85,554
28,272
31,190
8,652
17,440
9,150
80,252
24,194
31,001
8,068
16,989
8,689
83,320
23,733
34,192
7,875
17,520
8,782
79,498
25,036
30,877
6,836
16,749
8,981
86,229
23,595
36,479
8,484
17,671
8,967
81 Total, all currencies
131,167
117,497
112,697
101,095
101,397
108,249
99,820
99,321
99,707
98,741
94 Negotiable CDs 3
95 To United States
Parent bank
96
97
Other banks in United States
Nonbanks
98
n.a.
54,691
13,839
11,044
29,808
33,070
24,105
14,339
2,980
6,786
29,337
27,756
18,956
2,826
5,974
27,015
20,065
12,648
1,738
5,679
26,114
20,403
13,707
1,879
4,817
28,490
24,039
16,984
1,735
5,320
26,927
21,960
13,591
2,108
6,261
27,166
20,184
13,438
2,009
4,737
26,169
22,075
14,021
2,325
5,729
27,701
16,829
9,451
1,887
5,491
99 To foreigners
100
Other branches of parent bank
101
Banks
Official institutions
102
103
Nonbank foreigners
104 Other liabilities
73,279
15,403
29,320
8,279
20,277
3,197
56,923
18,294
18,356
8,871
11,402
3,399
51,980
18,493
14,344
7,661
11,482
3,624
49,932
17,868
14.251
6,658
11,155
4,083
50,855
17,790
15,056
6,724
11,285
4,025
52,645
21,305
14,491
6,015
10,834
3,075
47,491
17,289
14,123
5,685
10,394
3,442
48,921
16,689
15,855
5,655
10,722
3,050
48,138
17,951
15,203
4,934
10,050
3,325
51,174
16,386
18,626
6,096
10,066
3,037
93 Total payable in U.S. dollars
Bahamas and Caymans
105 Total, all currencies
152,083
146,811
142,055
134,238
137,526
143,082
134,060
131,363'
142,592
135,627
106 Negotiable CDs 3
107 To United States
Parent bank
108
109
Other banks in United States
110
Nonbanks
n.a.
111,299
50,980
16,057
44,262
615
102,955
47,162
13,938
41,855
610
103,813
44,811
12,778
46,224
565
96,636
47,862
11,131
37,643
470
99,585
44,417
11,952
43,216
527
102,012
49,981
10,986
41,045
683
95,840
43,470
11,144
41,226
784
94,493'
43,572'
11,131
39,790'
847
105,229
48,629
11,719
44,881
995
98,733
40,845
11,687
46,201
111 To foreigners
Other branches of parent bank
112
Banks
113
114
Official institutions
Nonbank foreigners
115
116 Other liabilities
38,445
14,936
11,876
1,919
11,274
2,339
40,320
16,782
12,405
2,054
9,079
2,921
35,053
14,075
10,669
1,776
8,533
2,579
34,827
13,561
9,636
2,468
9,162
2,210
35,216
13,368
10,216
2,386
9,246
2,255
38,447
15,918
10,158
2,834
9,537
2,096
35,427
13,574
8,964
2,665
10,224
2,110
33,841
12,527
8,545
2,577
10,192
2,245
34,400
12,631
8,614
2,719
10,436
2,116
33,831
12,323
8,402
2,808
10,298
2,068
148,278
143,582
138,322
130,075
133,256
138,733
130,084
127,309'
138,774
131,572
117 Total payable in U.S. dollars
3. Before June 1984, liabilities on negotiable CDs were included in liabilities to
the United States or liabilities to foreigners, according to the address of the initial
purchaser.
Summary Statistics
3.15
A57
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions o f dollars, e n d o f p e r i o d
1986
Item
1 Total1
2
3
4
5
6
7
8
9
10
11
12
By type
Liabilities reported by banks in the United States 2
U.S. Treasury bills and certificates 3
U.S. Treasury bonds and notes
Marketable
Nonmarketable 4
U.S. securities other than U.S. Treasury securities 5
By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries 6
1984
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.P
180,552
178,356
199,418
203,364
209,608
211,053
211,087
211,060
212,133
26,089
59,976
26,734
53,252
25,746
70,721
25,482
74,766
29,544
75,095
27,188
75,457
27,777
75,132
27,083
75,650
26,463
75,718
69,019
5,800
19,668
77,108
3,550
17,712
85,608
1,300
16,043
85,622
1,300
16,194
87,546
1,300
16,123
91,052
1,300
16,056
91,191
1,300
15,687
91,431
1,300
15,597
92,919
1,300
15,733
69,776
1,528
8,561
93,954
1,264
5,469
74,418
1,314
11,141
86,459
1,824
3,200
81,768
1,627
11,245
100,460
1,525
2,793
83,874
1,535
10,801
102,362
1,958
2,834
87,261
1,626
10,353
105,598
1,864
2,906
88,590
1,699
10,047
105,336
1,715
3,666
87,746
1,891
9,111
105,500
1,544
5,295
87,682
2,004
8,383
105,977
1,502
5,513
88,474
3,387
7,704
107,351
1,298
3,919
5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
NOTE. Based on Treasury Department data and on data reported to the
Treasury Department by banks (including Federal Reserve Banks) and securities
dealers in the United States.
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable in foreign currencies through 1974) and Treasury bills issued to official
institutions of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes
bonds and notes payable in foreign currencies.
3.16
1987
1985
LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions o f dollars, e n d o f p e r i o d
1985
Item
1982
1983
Dec.
1 Banks'own liabilities
2 Banks' own claims
3
Deposits
4
Other claims
5 Claims of banks' domestic customers 1
1. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the accounts
of their domestic customers.
4,844
7,707
4,251
3,456
676
5,219
7,231
2,731
4,501
1,059
1986
1984
8,586
11,984
4,998
6,986
569
15,368
16,294
8,437
7,857
580
Mar.
21,336
19,800
11,383
8,417
1,426
June
24,088
21,138
11,465
9,673
1,385
Sept.
29,227
24,516
13,818
10,698
1,660
NOTE. Data on claims exclude foreign currencies held by U.S. monetary
authorities,
A58
3.17
International Statistics • May 1987
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Reported by Banks in the United States
Millions of dollars, end of period
1986
Holder and type of liability
1983
1984
1987
1985
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.?
1 All foreigners
369,607
407,306
435,726
470,842
487,452
505,464
497,018
511,947
537,860
524,858
2 Banks' own liabilities
3
Demand deposits
4
Time deposits'
Other2
6
Own foreign offices 3
279,087
17,470
90,632
25,874
145,111
306,898
19,571
110,413
26,268
150,646
341,070
21,107
117,278
29,305
173,381
342,515
19,693
117,010
30,894
174,917
355,941
20,246
122,286
33,779
179,630
372,368
21,388
125,840
36,834
188,307
362,309
21,730
123,503
36,303
180,773
377,707
24,772
125,608'
35,61c
191,718
404,476
23,586
131,269
40,521
209,100
390,671
22,523
124,850
39,052
204,246
90,520
68,669
100,408
76,368
94,656
69,133
128,327
86,789
131,511
89,586
133,095
90,467
134,710
91,305
134,240
90,351
133,383
90,247
134,187
89,267
17,467
4,385
18,747
5,293
17,964
7,558
14,702
26,836
14,507
27,417
14,430
28,198
15,085
28,319
15,343'
28,546 r
16,533
26,603
15,360
29,559
7 Banks' custody liabilities 4
8
U.S. Treasury bills and certificates 5
9
Other negotiable and readily transferable
instruments 6
10
Other
11 Nonmonetary international and regional
organizations7
5,957
4,454
5,821
3,974
5,253
3,038
3,902
4,315
4,826
5,263
12 Banks' own liabilities
13
Demand deposits
14
Time deposits 1
15
Other2
4,632
297
3,584
750
2,014
254
1,267
493
2,621
85
2,067
469
1,857
156
1,209
492
4,090
165
3,233
691
1,721
180
1,243
299
2,426
175
1,939
312
2,944
135
2,299
511
2,977
199
2,166
611
3,914
183
2,670
1,061
16 Banks' custody liabilities4
17
U.S. Treasury bills and certificates
18
Other negotiable and readily transferable
instruments 6
19
Other
1,325
463
2,440
916
3,200
1,736
2,118
991
1,163
129
1,317
218
1,476
308
1,371
262
1,849
259
1,349
86
862
0
1,524
0
1,464
0
1,126
0
1,033
1
1,099
0
1,162
6
1,104
5
1,590
0
1,261
2
20 Official institutions8
79,876
86,065
79,985
96,467
101,371
104,640
102,645
102,909R
102,733
102,180
21 Banks' own liabilities
22
Demand deposits
23
Time deposits'
24
Other2
19,427
1,837
7,318
10,272
19,039
1,823
9,374
7,842
20,835
2,077
10,949
7,809
22,647
1,608
10,475
10,564
23,834
1,582
10,257
11,995
26,821
1,895
10,918
14,008
24,064
1,840
10,389
11,835
25,165
2,188
11,271'
11,706'
24,591
2,069
10,565
11,957
24,236'
1,488
10,657'
12,092'
25 Banks' custody liabilities 4
26
U.S. Treasury bills and certificates 5
27
Other negotiable and readily transferable
instruments 6
28
Other
60,448
54,341
67,026
59,976
59,150
53,252
73,820
70,721
77,538
74,766
77,819
75,095
78,581
75,457
77,744'
75,132
78,142
75,650
77,944
75,718
6,082
25
6,966
84
5,824
75
2,892
207
2,624
148
2,524
199
2,920
204
2,480'
132
2,347
145
2,158
69
29 Banks 9
226,887
248,893
275,589
292,554
301,879
318,552
310,650
324,700'
349,780
339,429
30 Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
33
Time deposits'
34
Other2
35
Own foreign offices 3
205,347
60,236
8,759
37,439
14,038
145,111
225,368
74,722
10,556
47,095
17,071
150,646
252,723
79,341
10,271
49,510
19,561
173,381
251,300
76,383
9,142
49,059
18,181
174,917
260,794
81,165
9,304
52,411
19,451
179,630
276,4%
88,188
9,295
58,006
20,887
188,307
268,436
87,663
9,714
55,630
22,319
180,773
282,484
90,766
11,626
57,505'
21,636'
191,718
309,967
100,867
10,301
64,352
26,215
209,100
296,628
92,383
10,443
58,127
23,813
204,246
21,540
10,178
23,525
11,448
22,866
9,832
41,254
10,934
41,084
10,543
42,057
10,635
42,214
10,601
42,216'
10,491
39,812
9,%2
42,801
9,821
7,485
3,877
7,236
4,841
6,040
6,994
5,585
24,735
5,526
25,016
5,538
25,883
5,532
26,081
5,550'
26,175'
5,513
24,338
5,542
27,437
36 Banks' custody liabilities4
37
U.S. Treasury bills and certificates
38
Other negotiable and readily transferable
instruments 6
39
Other
40 Other foreigners
56,887
67,894
74,331
77,847
78,949
79,233
79,822
80,022
80,522
77,986
41 Banks' own liabilities
42
Demand deposits
43
Time deposits
44
Other 2
49,680
6,577
42,290
813
60,477
6,938
52,678
861
64,892
8,673
66,711
8,786
67,223
9,1%
67,383
10,000
67,114
66,941
65,893
54,752
56,267
56,386
10,824
54,533
1,467
1,657
1,642
67,331
10,018
55,673
1,640
1,757
11,017
54,186
1,738
53,396
2,087
7,207
3,686
7,417
4,029
9,439
4,314
11,136
4,143
11,726
4,149
11,903
4,519
12,439
4,939
12,908
4,465
13,580
4,377
12,093
3,643
3,038
483
3,021
367
4,636
489
5,099
1,894
5,325
2,253
5,268
2,115
5,472
2,028
6,209'
2,234'
7,084
2,120
6,399
2,052
10,346
10,476
9,845
6,492
6,569
6,554
6.759
6,609
7,343
7,189
45 Banks' custody liabilities4
46
U.S. Treasury bills and certificates
47
Other negotiable and readily transferable
instruments 6
48
Other
49 MEMO: Negotiable time certificates of
deposit in custody for foreigners
1. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
2. Includes borrowing under repurchase agreements.
3. U.S. banks: includes amounts due to own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due to head office or parent foreign bank, and
foreign branches, agencies or wholly owned subsidiaries of head office or parent
foreign bank.
4. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.
55,546
1,838
10,410
5. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks.
8. Foreign central banks and foreign central governments, and the Bank for
International Settlements.
9. Excludes central banks, which are included in "Official institutions."
Nonbank-Reported
3.17
Data
Continued
1987
1986
Area and country
1983
1984
1985
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.?
1 Total
369,607
407,306
435,726
470,842
487,452
505,464
497,018
511,947
537,860
524,858
2 Foreign countries
363,649
402,852
429,905
466,867
482,199
502,426
493,116
507,632
533,034
519,595
138,072
585
2,709
466
531
9,441
3,599
520
8,462
4,290
1,673
373
1,603
1,799
32,246
467
60,683
562
7,403
65
596
153,145
615
4,114
438
418
12,701
3,358
699
10,762
4,731
1,548
597
2,082
1,676
31,740
584
68,671
602
7,192
79
537
164,114
693
5,243
513
496
15,541
4,835
666
9,667
4,212
948
652
2,114
1,422
29,020
429
76,728
673
9,635
105
523
163,337
988
5,343
560
449
20,171
6,001
604
8,746
4,682
497
711
1,894
1,267
28,455
310
78,200
542
3,366
48
506
166,939
1,035
5,114
643
365
21,469
6,062
570
9,269
4,495
542
791
1,979
944
29,064
285
79,954
482
3,292
32
553
173,930
1,073
6,165
483
406
21,339
5,559
623
8,836
4,952
576
758
2,082
1,293
29,207
448
86,215
562
2,724
84
545
173,485
1,018
6,024
478
606
21,242
6,624
646
8,807
4,826
654
738
2,297
1,016
29,848
401
84,297
515
2,938
25
484
175,791
1,197
6,863'
576'
448
21,641
5,856
755
9,304
4,410
512
685
2,197
1,301
30,406
418'
84,903'
544
3,308
16
452
180,580
1,186
6,907
485
580
22,849
5,488
706
10,865
5,558
745
700
2,393
889
31,239
454
85,476
630
2,706
23
702
178,954
978
6,754
446
565
21,389
6,498
750
9,376
5,176
688
658
2,243
909
30,022
575
87,791
554
2,981
21
582
3 Europe
4
Austria
5
Belgium-Luxembourg
6
Denmark
7
8
France
9
Germany
10
Greece
11
Italy
Netherlands
12
13
Norway
14
Portugal
15
Spain
16
Sweden
17
Switzerland
18
Turkey
19
United Kingdom
20
Yugoslavia
21
Other Western Europe 1
7?
U.S.S.R
23
Other Eastern Europe 2
16,026
16,059
17,427
22,359
23,933
24,150
24,340
25,753
26,256
26,001
140,088
4,038
55,818
2,266
3,168
34,545
1,842
1,689
8
1,047
788
109
10,392
3,879
5,924
1,166
1,244
8,632
3,535
153,381
4,394
56,897
2,370
5,275
36,773
2,001
2,514
10
1,092
896
183
12,303
4,220
6,951
1,266
1,394
10,545
4,297
167,856
6,032
57,657
2,765
5,373
42,674
2,049
3,104
11
1,239
1,071
122
14,060
4,875
7,514
1,167
1,552
11,922
4,668
182,617
6,336
60,764
2,201
5,134
56,432
2,227
3,334
7
1,1%
1,123
184
12,985
4,382
6,640
1,158
1,687
12,058
4,770
187,924
6,0%
67,044
2,248
5,168
55,928
2,139
3,315
8
1,232
1,140
177
13,609
4,383
6,392
1,149
1,636
11,560
4,701
1%,704
6,069
69,123
2,199
5,359
61,635
2,426
3,373
7
1,260
1,129
187
13,137
4,775
6,415
1,256
1,589
11,709
5,056
187,968
5,748
64,106
1,918
5,361
58,713
2,398
3,775
6
1,216
1,126
151
13,197
4,645
6,522
1,167
1,608
11,392
4,917
189,383
5,202
62,613
2,549
4,684
61,465
2,325
3,873
6
1,199
1,129
153
13,488
4,706
6,729
1,146
1,610
11,592'
4,914'
208,042
4,754
72,372
2,965
4,321
70,928
2,052
4,281
7
1,235
1,122
136
13,631
4,846
6,863
1,162
1,537
10,451
5,379
195,366
4,502
64,916
2,362
3,816
66,131
2,208
4,298
6
1,049
1,124
149
13,476
5,582
7,378
1,110
1,618
10,538
5,103
58,570
71,187
72,280
91,669
96,021
100,058
99,325
107,025
108,944
111,921
249
4,051
6,657
464
997
1,722
18,079
1,648
1,234
747
12,976
9,748
1,153
4,990
6,581
507
1,033
1,268
21,640
1,730
1,383
1,257
16,804
12,841
1,607
7,786
8,067
712
1,466
1,601
23,077
1,665
1,140
1,358
14,523
9,276
1,795
14,331
8,934
562
1,572
1,731
36,286
1,392
1,363
1,104
12,739
9,861
1,185
15,608
9,026
685
1,474
1,686
38,221
1,251
1,458
1,080
13,227
11,121
1,938
16,129
9,349
651
1,611
2,109
39,951
1,282
1,400
1,100
13,056
11,481
1,585
16,528
8,662
755
1,530
1,986
41,311
1,446
1,707
1,115
12,045
10,654
1,450
17,540
9,347
701
1,528
2,380
46,155
1,128
1,720
1,083
13,010
10,984
1,476
18,903
9,267
673
1,548
1,890
47,657
1,146
1,865
1,120
12,356
11,042
2,046
19,660
9,404
664
1,410
1,763
49,971
1,053
1,809
1,299
12,090
10,754
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries 4
63
Other Africa
2,827
671
84
449
87
620
917
3,396
647
118
328
153
1,189
961
4,883
1,363
163
388
163
1,494
1,312
3,962
820
93
530
65
1,368
1,086
4,227
1,088
82
438
60
1,371
1,189
4,158
843
91
318
80
1,625
1,203
3,973
640
86
347
79
1,623
1,199
4,018
710
84
264
1,593
1,272
4,026
706
92
278
74
1,518
1,358
3,662
582
74
341
54
1,361
1,250
64 Other countries
65
Australia
66
All other
8,067
7,857
210
5,684
5,300
384
3,347
2,779
568
2,924
2,173
751
3,155
2,459
696
3,425
2,785
640
4,026
2,943
1,083
5,662
4,286
1,376
5,186
4,262
924
3,689
2,693
997
67 Nonmonetary international and regional
organizations
International
Latin American regional
Other regional 5
5,957
5,273
419
265
4,454
3,747
587
120
5,821
4,806
894
121
3,974
2,714
922
338
5,253
4,147
916
190
3,038
1,759
972
307
3,902
2,748
957
197
4,315
3,232
927
157
4,826
3,575
969
281
5,263
3,958
960
346
24 Canada
75 Latin America and Caribbean
26
Argentina
11
Bahamas
28
Bermuda
79
Brazil
30
British West Indies
31
Chile
32
Colombia
33
Cuba
34
Ecuador
35
Guatemala
36
Jamaica
37
Mexico
38
Netherlands Antilles
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other Latin America and Caribbean
44
45
46
47
48
49
50
51
5?
53
54
55
56
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle-East oil-exporting countries 3
Other Asia
68
69
70
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
%
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."
A59
A60
3.18
International Statistics • May 1987
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1986
Area and country
1983
1984
1987
1985
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.?
1 Total
391,312
400,162
401,608
403,491
403,760
416,577
406,286
417,418''
443,640
420,144
2 Foreign countries
391,148
399,363
400,577
402,999
403,340
416,376
405,913
417,247'
440,656
420,082
91,927
401
5,639
1,275
1,044
8,766
1,284
476
9,018
1,267
690
1,114
3,573
3,358
1,863
812
47,364
1,718
477
192
1,598
99,014
433
4,794
648
898
9,157
1,306
817
9,119
1,356
675
1,243
2,884
2,230
2,123
1,130
56,185
1,886
596
142
1,389
106,413
598
5,772
706
823
9,124
1,267
991
8,848
1,258
706
1,058
1,908
2,219
3,171
1,200
62,566
1,964
998
130
1,107
100,319
619
6,113
856
1,041
9,583
1,426
622
7,266
1,427
614
789
1,863
2,906
2,617
1,709
56,247
1,902
1,102
504
1,112
100,323
694
6,990
783
964
9,483
1,181
660
5,981
1,254
698
757
1,757
2,396
3,306
1,649
57,856
1,852
508
528
1,026
106,735
654
6,574
807
1,085
10,209
1,599
706
6,797
2,039
732
734
1,995
2,487
2,665
1,586
61,997
1,871
791
405
1,002
103,622
619
7,689
796
1,111
9,514
1,320
626
7,681
2,114
711
699
1,922
2,375
2,661
1,612
58,094
1,886
799
296
1,097
106,264'
748
8,149
764
1,176
9,499
1,654
792
8,323
2,424
712
682
1,722
2,343
3,574
3,527
56,610
1,813'
600
225
927
107,487
739
7,510
700
957
11,343
1,321
626
8,944
3,318
654
706
1,459
1,932
3,047
1,536
58,275
1,833
556
634
1,3%
100,926
654
7,458
670
1,037
9,009
2,287
630
7,954
2,081
745
671
1,479
2,363
2,536
1,469
55,691
1,773
536
411
1,382
3 Europe
Austria
4
5
Belgium-Luxembourg
6
Denmark
7
Finland
France
8
Germany
9
Greece
10
11
Italy
Netherlands
12
Norway
13
14
Portugal
Spain
15
16
Sweden
Switzerland
17
18
Turkey
United Kingdom
19
Yugoslavia
20
Other Western Europe 1
21
22
U.S.S.R
Other Eastern Europe 2
23
16,341
16,109
16,482
18,303
19,401
18,112
19,532
20,338
20,936
20,749
205,491
11,749
59,633
566
24,667
35,527
6,072
3,745
0
2,307
129
215
34,802
1,154
7,848
2,536
977
11,287
2,277
207,862
11,050
58,009
592
26,315
38,205
6,839
3,499
0
2,420
158
252
34,885
1,350
7,707
2,384
1,088
11,017
2,091
202,674
11,462
58,258
499
25,283
38,881
6,603
3,249
0
2,390
194
224
31,799
1,340
6,645
1,947
960
10,871
2,067
202,203
12,282
56,250
432
24,915
41,923
6,513
2,776
0
2,366
113
209
31,168
996
6,280
1,703
927
11,363
1,985
197,879
12,009
55,465
373
24,762
39,836
6,449
2,642
0
2,375
127
209
30,839
1,060
5,862
1,677
936
11,289
1,969
205,579
12,119
61,705
320
24,856
40,360
6,489
2,633
0
2,387
135
224
31,037
1,133
6,377
1,600
1,051
11,177
1,977
196,413
12,243
53,557
452
24,738
39,535
6,514
2,674
0
2,420
122
209
31,061
972
6,094
1,625
930
11,180
2,086
196,512
12,017
53,967
447
25,880
39,248
6,526
2,665
1
2,395
138
216
30,659
911
5,354
1,618
943
11,014
2,513
208,507
12,079
59,568
418
25,433
45,782
6,536
2,818
0
2,430
140
198
30,490
1,038
5,423
1,637
1,045
11,047
2,424
194,659
11,941
51,822
416
25,660
40,881
6,452
2,801
2
2,404
133
199
30,160
960
5,260
1,617
937
10,992
2,021
67,837
66,316
66,212
74,253
77,811
78,073
78,558
86,209
95,802
95,826
292
1,908
8,489
330
805
1,832
30,354
9,943
2,107
1,219
4,954
5,603
710
1,849
7,293
425
724
2,088
29,066
9,285
2,555
1,125
5,044
6,152
639
1,535
6,796
450
698
1,991
31,249
9,226
2,224
845
4,298
6,260
779
1,089
8,445
372
720
1,567
40,902
8,900
2,168
711
2,919
5,680
526
1,637
8,632
375
729
1,541
43,327
8,495
2,128
736
2,764
6,921
758
1,903
8,883
355
689
1,622
42,751
7,846
2,148
636
3,724
6,758
758
1,528
8,337
316
694
1,630
45,167
7,023
2,071
611
3,3%
7,027
793
1,812
7,598
327
722
1,615
53,265
6,569
1,972
595
3,778
7,162
787
2,675
8,250
321
718
1,648
59,497
7,162
2,202
576
4,115
7,852
996
2,566
8,428
324
676
1,611
58,313
6,716
2,144
522
5,483
8,046
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
Oil-exporting countries 5
62
Other
63
6,654
747
440
2,634
33
1,073
1,727
6,615
728
583
2,795
18
842
1,649
5,407
721
575
1,942
20
630
1,520
4,817
701
615
1,661
17
413
1,410
4,693
633
617
1,683
21
445
1,294
4,651
593
636
1,607
33
511
1,271
4,531
577
621
1,549
35
545
1,203
4,737
560
621
1,586
27
690
1,253
4,622
567
598
1,531
28
688
1,209
4,595
577
590
1,516
36
720
1,157
64 Other countries
Australia
65
66
All other
2,898
2,256
642
3,447
2,769
678
3,390
2,413
978
3,103
2,159
945
3,232
2,293
940
3,225
2,221
1,004
3,259
2,143
1,115
3,187
1,980'
1,207'
3,303
1,952
1,350
3,328
2,085
1,243
164
800
1,030
493
420
200
372
2,983
62
24 Canada
25 Latin America and Caribbean
26
Argentina
Bahamas
27
28
Bermuda
Brazil
29
30
British West Indies
31
Chile
Colombia
32
Cuba
33
34
Ecuador
Guatemala 3
35
36
Jamaica3
37
Mexico
Netherlands Antilles
38
39
Panama
Peru
40
41
Uruguay
Venezuela
42
Other Latin America and Caribbean
43
44
45
46
47
48
49
50
51
52
53
54
55
56
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle East oil-exporting countries 4
Other Asia
67 Nonmonetary international and regional
organizations 6
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
3. Included in "Other Latin America and Caribbean" through March 1978.
171
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in
"Other Western Europe."
Nonbank-Reported
3.19
Data
BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
M i l l i o n s o f dollars, e n d o f p e r i o d
1987
1986
Type of claim
1983
1984
1985
July
Aug.
403,491
60,667
181,590
114,099
49,324
64,775
47,136
403,760
60,046
182,170
115,922
52,410
63,512
45,621
Sept.
Oct.
Nov/
406,286
60,745
182,548
117,392
53,074
64,319
45,601
417,418
60,768
189,093
120,082
52,834
67,247
47,475
Dec.
1 Total
426,215
433,078
430,489
2
3
4
5
6
7
8
391,312
57,569
146,393
123,837
47,126
76,711
63,514
400,162
62,237
156,216
124,932
49,226
75,706
56,777
401,608
60,507
174,261
116,654
48,372
68,282
50,185
34,903
2,969
32,916
3,380
28,881
3,335
31,849
3,743
33,268
4,416
26,064
23,805
19,332
22,337
23,338
5,870
5,732
6,214
5,769
5,514
37,715
37,103
28,487
27,172
25,732
46,337
40,714
37,780
Banks' own claims on foreigners
Foreign public borrowers
Own foreign offices 1
Unaffiliated foreign banks
Deposits
Other
All other foreigners
9 Claims of banks' domestic customers2 . .
448,426
416,577
60,603
193,355
116,808
52,178
64,630
45,811
Jan.?
476,908
443,640
63,165
211,264
123,028
56,449
66,579
46,183
420,144
60,975
192,064
120,979
53,215
67,764
46,126
11 Negotiable and readily transferable
12 Outstanding collections and other
13 MEMO: C u s t o m e r liability o n
Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States 4 . . . .
47,464
1. U.S. banks: includes amounts due from own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due from head office or parent foreign bank,
and foreign branches, agencies, or wholly owned subsidiaries of head office or
parent foreign bank.
2. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the account
of their domestic customers.
3.20
48,575
44,515
43,547R
44,855
44,071
3. Principally negotiable time certificates of deposit and bankers acceptances.
4. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see July 1979 BULLETIN,
p. 550.
NOTE. Beginning April 1978, data for banks' own claims are given on a monthly
basis, but the data for claims of banks' own domestic customers are available on a
quarterly basis only.
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
M i l l i o n s o f dollars, e n d o f p e r i o d
1986
Maturity; by borrower and area
1 Total
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
By borrower
Maturity of 1 year or less 1
Foreign public borrowers
All other foreigners
Maturity of over 1 year1
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less 1
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 2
Maturity of over 1 year1
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 2
1. Remaining time to maturity.
1983
1984
n.a.
1985
Mar.
June
Sept.
Dec.?
243,715
243,952
227,903
221,172
222,559
224,317
230,314
176,158
24,039
152,120
67,557
32,521
35,036
167,858
23,912
143,947
76,094
38,695
37,399
160,824
26,302
134,522
67,078
34,512
32,567
152,666
23,845
128,821
68,506
36,681
31,825
152,551
23,164
129,388
70,008
37,177
32,830
154,731
22,392
132,339
69,586
38,115
31,471
158,086
24,445
133,641
72,228
39,792
32,436
56,117
6,211
73,660
34,403
4,199
1,569
58,498
6,028
62,791
33,504
4,442
2,593
56,585
6,401
63,328
27,966
3,753
2,791
53,435
5,899
59,537
28,032
3,331
2,433
57,927
6,078
57,399
25,777
3,297
2,072
59,331
5,968
57,814
26,713
3,038
1,866
60,205
5.659
54,912
30,476
2,807
4,027
13,576
1,857
43,888
4,850
2,286
1,101
9,605
1,882
56,144
5,323
2,033
1,107
7,634
1,805
50,674
4,502
1,538
926
7,809
1,925
52,165
4,251
1,634
722
7,934
2,256
53,572
4,034
1,497
714
7,285
1,861
54,147
3,990
1,479
824
6,941
1,951
56,085
4,921
1,534
794
2. Includes nonmonetary international and regional organizations.
A61
A62
International Statistics • May 1987
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks 12
3.21
Billions of dollars, end of period
1985
Area or country
1 Total
1982
1983
1986
1984
Mar.
June
Sept.
Dec.
Mar.
June
Sept.
Dec.?
436.1
433.9
405.7
405.5
396.8
394.9
391.9
394.4'
391.0'
391.3'
395.5
179.6
13.1
17.1
12.7
10.3
3.6
5.0
5.0
72.1
10.4
30.2
167.8
12.4
16.2
11.3
11.4
3.5
5.1
4.3
65.3
8.3
29.9
148.1
8.7
14.1
9.0
10.1
3.9
3.2
3.9
60.3
7.9
27.1
153.0
9.3
14.5
8.9
10.0
3.8
3.1
4.2
65.4
9.1
24.7
146.7
8.9
13.5
9.6
8.6
3.7
2.9
4.0
65.7
8.1
21.7
152.0
9.5
14.8
9.8
8.4
3.4
3.1
4.1
67.1
7.6
24.3
148.5
9.3
12.3
10.5
9.8
3.7
2.8
4.4
64.6
7.0
24.2
156.3'
8.3
13.8
11.2
8.5
3.5
2.9
5.4
68.5
6.2
28.1
159.9'
9.0
15.1
11.5
9.3
3.4
2.9
5.6
68.9
6.8
27.4
158.9'
8.5
14.6
12.5
8.1
3.9
2.7
4.8
70.0'
6.1
27.7'
159.6
8.5
13.8
11.2
9.2
4.6
2.4
5.5
72.0
5.4
26.9
13 Other developed countries
14
Austria
15
Denmark
16
Finland
17
Greece
18
Norway
19
Portugal
20
Spain
21
Turkey
22
Other Western Europe
23
South Africa
24
Australia
33.5
1.9
2.4
2.2
3.0
3.3
1.5
7.5
1.4
2.3
3.7
4.3
36.0
1.9
3.4
2.4
2.8
3.3
1.5
7.1
1.7
1.8
4.7
5.4
33.6
1.6
2.2
1.9
2.9
3.0
1.4
6.5
1.9
1.7
4.5
6.0
32.8
1.6
2.1
1.8
2.9
2.9
1.4
6.4
1.9
1.7
4.2
6.1
32.3
1.6
1.9
1.8
2.9
2.9
1.3
5.9
2.0
1.8
3.9
6.2
32.0
1.7
2.1
1.8
2.8
3.4
1.4
6.1
2.1
1.7
3.3
5.6
30.4
1.6
2.4
1.6
2.6
2.9
1.3
5.8
1.9
2.0
3.2
5.0
31.6
1.6
2.5
1.9
2.5
2.7
1.1
6.4
2.3
2.4
3.2
4.9
30.6
1.7
2.4
1.6
2.6
3.0
1.0
6.4
2.5
2.1
3.1
4.2
29.4
1.7
2.3
1.7
2.3
2.7
1.0
6.7
2.1
1.6
3.1
4.1'
26.2
1.7
1.7
1.4
2.3
2.4
.9
5.8
2.0
1.5
3.1
3.5
25 OPEC countries 3
26
Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
30
African countries
26.9
2.2
10.5
2.9
8.5
2.8
28.4
2.2
9.9
3.4
9.8
3.0
24.9
2.2
9.3
3.3
7.9
2.3
24.5
2.2
9.3
3.3
7.4
2.3
22.8
2.2
9.3
3.1
6.1
2.2
22.7
22
9.0
3.1
6.2
2.3
21.6
2.1
8.9
3.0
5.5
2.0
20.7
2.2
8.7
3.3
4.8
1.8
20.6
2.1
8.8
3.0
5.0
1.7
20.0
2.1
8.7
2.8
4.6'
1.7
19.6
2.2
8.6
2.6
4.5
1.7
103.5
101.5'
99.7'
100.1
2 G-10 countries and Switzerland
3
Belgium-Luxembourg
4
France
5
Germany
6
Italy
7
Netherlands
8
Sweden
9
Switzerland
10
United Kingdom
11
Canada
12
Japan
106.5
110.8
111.8
110.8
110.0
107.8
105.1
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
8.9
22.9
6.3
3.1
24.2
2.6
4.0
9.5
23.1
6.4
3.2
25.8
2.4
4.2
8.7
26.3
7.0
2.9
25.7
2.2
3.9
8.6
26.4
7.0
2.8
25.5
2.2
3.8
8.6
26.6
6.9
2.7
25.3
2.1
3.7
8.9
25.5
6.6
2.6
24.4
1.9
3.5
8.9
25.6
7.0
2.7
24.2
1.8
3.4
8.9
25.6'
7.0
2.3
24.0
1.7
3.3
9.2
25.3
7.1
2.2
23.8
1.6
3.3
9.3
25.2
7.1
2.0
23.8
1.5
3.3'
9.5
25.3
7.1
2.1
23.9
1.4
3.7
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.2
5.3
.5
2.3
10.7
2.1
6.3
1.6
1.1
.3
5.2
.9
1.9
11.2
2.8
6.1
2.2
1.0
.7
5.1
.9
1.8
10.6
2.7
6.0
1.8
1.1
.7
5.3
.9
1.7
10.4
2.7
6.1
1.7
1.1
.3
5.5
.9
2.3
10.0
2.8
6.0
1.6
.9
1.1
5.1
1.1
1.5
10.4
2.7
6.0
1.7'
.9
.5
4.5
1.2
1.6
9.4
2.4
5.7
1.4
1.0
.6
4.3
1.2
1.3
9.5
2.2
5.6
1.3
.9
.6
3.7
1.3
1.6
8.7'
2.0
5.7
1.1
.8
.6
4.3
1.3
1.4
7.3
2.1
5.4
1.0
.7
.4
4.9
1.2
1.6
6.8
2.1
5.4
.9
.7
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 4
1.2
.7
.1
2.4
1.5
.8
.1
2.3
1.2
.8
.1
2.1
1.1
.8
.1
2.2
1.0
.8
.1
2.0
1.0
.9
.1
2.0
1.0
.9
.1
1.9
.9
.9
.1
1.9
.9
.9
.1
1.7
.7
.9
.1
1.6
.7
.9
.1
1.6
52 Eastern Europe
53
U.S.S.R
54
Yugoslavia
55
Other
6.2
.3
2.2
3.7
5.3
.2
2.4
2.8
4.4
.1
2.3
2.0
4.3
.2
2.2
1.9
4.3
.3
2.2
1.8
4.6
.2
2.4
1.9
4.2
.1
2.2
1.8
4.0
.3
2.0
1.7
4.0
.3
2.0
1.7
3.4'
.1
1.9
1.4
4.0
.4
1.7
1.9
56 Offshore banking centers
57
Bahamas
58
Bermuda
59
Cavman Islands and other British West Indies
60
Netherlands Antilles
61
Panama 5
62
Lebanon
63
Hong Kong
64
Singapore
65
Others 6
66.0
19.0
.9
12.8
3.3
7.5
.1
13.3
9.1
.0
68.9
21.7
.9
12.2
4.2
5.8
.1
13.8
10.3
.0
65.6
21.5
.9
11.8
3.4
6.7
.1
11.4
9.8
.0
63.2
20.1
.7
12.3
3.3
5.5
.1
11.4
9.9
.0
63.9
21.1
.9
12.1
3.2
5.4
.1
11.4
9.7
.0
58.8
16.6
.8
12.3
2.3
6.1
.0
11.4
9.4
.0
65.4
21.4
.7
13.4
2.3
6.0
.1
11.5
9.9
.0
61.6'
21.5
.7
11.3
2.3
5.9
.1
11.4
8.4
.0
57.2
17.3
.4
12.8
2.3
5.5
.1
9.4
9.3
.0
62.6
20.0
.4'
13.2
1.9
6.8
.1
10.4
9.7
.0
65.6
22.6
.7
14.6
1.9
5.1
.1
11.2
9.4
.0
66 Miscellaneous and unallocated 7
17.5
16.8
17.3
16.9
16.9
17.3
16.9
16.7
17.2
17.5'
20.3
31 Non-OPEC developing countries
1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches offoreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.18 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches).
2. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
3. Besides the Organization of Petroleum Exporting Countries shown individually, this group includes other members of OPEC (Algeria, Gabon, Iran, Iraq,
Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) as well
as Bahrain and Oman (not formally members of OPEC).
4. Excludes Liberia.
5. Includes Canal Zone beginning December 1979.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.
Nonbank-Reported
3.22
Data
A63
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States1
Millions o f dollars, e n d o f p e r i o d
1986
1985
Type, and area or country
982
1984
1983
Sept.
Mar.
Dec.
Sept.''
June
27,512
25,346
29,357
25,533
27,662
25,635
24,222
24,380
2 Payable in dollars
3 Payable in foreign currencies
24,280
3,232
22,233
3,113
26,389
2,968
22,634
2,899
24,352
3,310
22,022
3,613
20,692
3,530
20,633
3,747
By type
4 Financial liabilities
5
Payable in dollars
6
Payable in foreign currencies
11,066
8,858
2,208
10,572
8,700
1,872
14,509
12,553
1,955
12,092
10,050
2,041
13,437
11,313
2,123
12,328
10,205
2,123
11,117
9,177
1,940
11,620
9,418
2,201
7 Commercial liabilities
8
Trade payables
9
Advance receipts and other liabilities.
16,446
9,438
7,008
14,774
7,765
7,009
14,849
7,005
7,843
13,441
5,694
7,747
14,225
6,685
7,540
13,307
5,598
7,710
13,105
5,503
7,602
12,760
5,592
7,168
15,423
1,023
13,533
1,241
13,836
1,013
12,584
857
13,039
1,186
11,817
1,490
11,516
1,590
11,214
1,546
6,501
505
783
467
711
792
3,102
5,742
302
843
502
621
486
2,839
6,728
471
995
489
590
569
3,297
6,816
367
849
509
624
593
3,584
7,616
329
857
434
745
676
4,254
6,971
338
851
371
630
702
3,736
6,705
288
701
262
651
561
3,960
7,254
322
501
289
708
692
4,272
1 Total
10
11
12
13
14
15
16
17
18
Payable in dollars
Payable in foreign currencies
By area or country
Financial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
19
Canada
746
764
863
826
760
753
287
282
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,751
904
14
28
1,027
121
114
2,596
751
13
32
1,041
213
124
5,086
1,926
13
35
2,103
367
137
2,619
1,145
4
23
1,234
28
3
3,184
1,123
4
29
1,843
15
3
2,788
954
13
26
1,610
20
4
2,404
859
14
27
1,362
30
3
2,269
863
4
28
1,256
18
5
27
28
29
Asia
Japan
Middle East oil-exporting countries 2
1,039
715
169
1,424
991
170
1,777
1,209
155
1,767
1,136
82
1,815
1,198
82
1,799
1,192
78
1,660
1,189
43
1,790
1,354
3
30
Africa
17
0
19
0
14
0
14
0
12
0
12
0
12
0
4
2
12
27
41
50
50
4
49
21
3,831
52
598
468
346
367
1,027
3,245
62
437
427
268
241
732
4,001
48
438
622
245
257
1,095
3,897
56
431
601
386
289
858
4,074
62
453
607
364
379
976
3,915
66
382
546
545
251
957
3,761
58
357
512
587
283
861
4,337
75
369
628
613
360
1,086
31
32
33
34
35
36
37
38
39
40
Oil-exporting countries 3
All other 4
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
1,495
1,841
1,975
1,383
1,449
1,442
1,351
1,240
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,570
16
117
60
32
436
642
1,473
1
67
44
6
585
432
1,871
7
114
124
32
586
636
1,262
2
105
120
15
415
311
1,088
12
77
58
44
430
212
1,097
26
210
64
7
256
364
1,304
10
294
107
35
235
488
843
37
172
43
38
196
207
48
49
50
Asia
Japan
Middle East oil-exporting countries 2 '
8,144
1,226
5,503
6,741
1,247
4,178
5,285
1,256
2,372
5,353
1,567
2,109
6,046
1,799
2,829
5,384
2,039
2,171
5,068
2,095
1,731
4,781
2,114
1,528
51
52
Africa
Oil-exporting countries 3
753
277
553
167
588
233
572
235
587
238
486
148
569
215
578
176
53
All other 4
651
921
1,128
975
982
983
1,053
980
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.
A64
International Statistics • May 1987
3.23
CLAIMS ON UNAFFILIATED FOREIGNERS
United States'
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1985
Type, and area or country
1982
1983
1986
1984
Sept.
Dec.
Mar.
June
Sept.P
1
Total
28,725
34,911
29,901
28,626
28,437
30,927
32,519
32,262
2
3
Payable in dollars
Payable in foreign currencies
26,085
2,640
31,815
3,096
27,304
2,597
25,760
2,866
26,135
2,302
28,740
2,187
30,337
2,182
29,787
2,475
4
5
6
7
8
9
10
By type
Financial claims
Deposits
Payable in dollars
Payable in foreign currencies
Other financial claims
Payable in dollars
Payable in foreign currencies
17,684
13,058
12,628
430
4,626
2,979
1,647
23,780
18,496
17,993
503
5,284
3,328
1,956
19,254
14,621
14,202
420
4,633
3,190
1,442
19,220
15,331
14,627
704
3,889
2,351
1,538
18,451
15,204
14,589
615
3,248
2,213
1,035
21,540
18,146
17,689
457
3,394
2,301
1,093
23,324
20,034
19,479
555
3,290
2,269
1,021
23,165
18,554
18,066
488
4,611
3,392
1,220
11
12
13
Commercial claims
Trade receivables
Advance payments and other claims
11,041
9,994
1,047
11,131
9,721
1,410
10,646
9,177
1,470
9,406
7,932
1,475
9,986
8,696
1,290
9,387
8,086
1,301
9,195
7,858
1,337
9,097
7,925
1,172
10,478
563
10,494
637
9,912
735
8,782
624
9,333
652
8,750
637
8,589
606
8,329
767
4,873
15
134
178
97
107
4,064
6,488
37
150
163
71
38
5,817
5,762
15
126
224
66
66
4,864
6,463
12
132
158
127
53
5,736
6,530
10
184
223
61
74
5,725
6,859
10
217
172
61
166
5,986
8,877
11
257
148
17
177
8,051
9,338
67
418
129
44
138
8,315
14
15
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
4,377
5,989
3,988
4,038
3,260
4,024
4,464
3,690
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
7,546
3,279
32
62
3,255
274
139
10,234
4,771
102
53
4,206
293
134
8,216
3,306
6
100
4,043
215
125
7,619
2,321
5
92
4,642
201
73
7,841
2,698
6
78
4,571
180
48
9,934
3,500
2
77
5,904
178
43
9,151
3,251
17
75
5,359
176
42
9,300
2,912
19
101
5,871
173
40
698
153
15
764
297
4
961
353
13
969
725
6
696
475
4
621
350
2
723
499
2
673
387
2
158
48
147
55
210
85
104
31
103
29
87
27
89
25
84
18
31
159
117
26
21
14
20
81
3,826
151
474
357
350
360
811
3,670
135
459
349
334
317
809
3,801
165
440
374
335
271
1,063
3,235
158
360
336
286
208
779
3,533
175
426
346
284
284
898
3,387
148
384
396
221
248
793
3,304
131
390
414
237
221
668
3,345
123
412
397
183
232
830
31
32
33
Japan
Middle East oil-exporting countries 2
34
35
Africa
Oil-exporting countries 3
36
AH other 4
37
38
39
40
41
42
43
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
52
53
54
Japan
Middle East oil-exporting countries 2
633
829
1,021
1,100
1,023
1,060
970
929
2,526
21
261
258
12
775
351
2,695
8
190
493
7
884
272
2,052
8
115
214
7
583
206
1,660
18
62
211
7
416
149
1,753
13
93
206
6
510
157
1,599
27
82
231
7
388
172
1,590
24
148
194
24
320
180
1,665
29
132
206
23
299
190
3,050
1,047
751
3,063
1,114
737
3,073
1,191
668
2,712
884
541
2,982
1,016
638
2,606
801
630
2,649
846
691
2,471
788
597
470
134
434
131
437
130
491
167
447
171
456
168
229
264
257
244
235
231
55
56
Africa
Oil-exporting countries 3
588
140
588
139
57
All other 4
417
286
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
Securities Holdings and Transactions
3.24
A65
FOREIGN TRANSACTIONS IN SECURITIES
M i l l i o n s o f dollars
1987
1986
1987
Transactions, and area or country
1985
Jan.
Aug.
July
Sept.
Oct.
Nov.
Jan.''
Dec.
U.S. corporate securities
STOCKS
81,995
77,054
1 Foreign purchases
2 Foreign sales
148,073
129,382
17,701
16,052
13,275
11,261
12,045
10,615
12,206
10,948
10,979
12,300
12,033'
12,086'
14,077
12,312
17,701
16,052
3 Net purchases, or sales ( - )
4,941
18,690
1,649
2,014
1,430
1,258
-1,322
-52
1,766
1,649
4 Foreign countries
4,857
18,898
1,728
2,079
1,470
1,303
-1,179
-19?
1,686
1,728
2,057
-438
730
-123
-75
1,665
356
1,718
238
296
24
168
9,567
462
341
936
1,560
4,832
796
3,027
975
3,864
297
373
1,010
144
61
53
98
5%
132
317
132
85
-1
53
577
182
-130
52
-198
482
214
271
181
830
30
-23
824
105
-42
50
44
521
97
108
78
376
-1
-13
587
30
9
36
70
462
93
145
58
346
-13
86
-1,124
-92
-104
-19
-405
-481
-115
154
-51
16
39
-97
-485
-69
-3
-50
-236
-114
41'
367
-92
80
23
48
548
113
24
14
47
354
102
219
266
450
17
84
1,010
144
61
53
98
596
132
317
132
85
-1
53
84
-208
-80
-65
-40
-45
-143
-34
80
-80
18 Foreign purchases
19 Foreign sales
86,587
42,455
122,607
71,783
9,121
7,234
8,937
5,679
9,420
5,348
10,160
5,585
9,712
5,527
9,277'
6,105'
11,879
7,733
9,121
7,234
20 Net purchases, or sales ( - )
44,132
50,824
1,887
3,259
4,072
4,575
4,185
3,172'
4,147
1,887
21 Foreign countries
44,227
50,007
1,976
3,197
4,077
4,871
4,457
2,853'
4,251
1,976
22
23
24
25
26
27
28
29
30
31
32
33
40,047
210
2,001
222
3,987
32,762
190
498
-2,648
6,091
11
38
39,274
388
-251
387
4,529
33,865
548
1,468
-2,951
11,537
16
114
1,133
6
-245
-8
64
1,192
-101
102
-57
917
0
-19
2,395
6
-91
-39
180
2,213
85
250
-718
1,177
-3
11
2,484
20
-81
98
564
1,917
110
160
-40
1,329
5
29
3,386
-29
26
51
30
3,414
2
64
-169
1,586
6
-4
3,475
0
82
-55
265
3,177
88
101
-33
819
-3
11
2,100'
328
-108
113
204
1,416
154
66'
-355
902'
3
-15
3,074
32
-19
52
-117
2,770
153
102
-258
1,174
3
3
1,133
6
-245
-8
64
1,192
-101
102
-57
917
-95
817
-88
61
-4
-296
-273
319
-104
-88
5
6
7
8
9
10
11
12
13
14
15
16
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
17 Nonmonetary international and
regional organizations
BONDS
2
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
34 Nonmonetary international and
regional organizations
0
-19
Foreign securities
35 Stocks, net purchases, or sales ( - )
36
Foreign purchases
37
Foreign sales
-3,892
20,861
24,754
-1,444
50,033
51,478
-106
5,117
5,223
404
4,310
3,907
-83
4,610
4,694
676
5,091
4,415
1,256
6,324
5,068
391'
4,190'
3,799'
74
4,709
4,635
-106
5,117
5,223
38 Bonds, net purchases, or sales ( - )
39
Foreign purchases
40
Foreign sales
-3,999
81,216
85,214
-3,173
166,018
169,191
318
11,515
11,198
359
13,559
13,200
1,232
14,086
12,854
-2,231
15,182
17,412
2,151
16,249
14,098
-674'
12,626'
13,300'
-472
16,528
17,000
318
11,515
11,198
212
41 Net purchases, or sales ( - ) , of stocks and bonds . . . .
-7,891
-4,618
212
762
1,149
-1,555
3,407
-283'
-399
42 Foreign countries
-8,954
-5,746
60
438
1,090
-1,492
3,078
-285'
-848
60
43
44
45
46
47
48
-9,887
-1,686
1,846
659
75
38
-17,701
-881
3,475
11,227
52
-1,918
-139
-410
396
170
4
38
-683
245
278
659
9
-70
-714
263
127
1,337
1
75
-3,379
111
351
1,852
3
-430
-647
88
502
3,194
-1
-58
-999'
-106'
16
82C
4
-20'
-1,408
-264
212
1,511
3
-902
-139
-410
396
170
4
38
1,063
1,128
152
324
59
-63
330
V
449
152
Europe
Canada
Latin America and Caribbean
Asia
Africa
Other countries
49 Nonmonetary international and
regional organizations
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
2. Includes state and local government securities, and securities of U.S.
government agencies and corporations. Also includes issues of new debt securi-
ties sold abroad by U.S. corporations organized to finance direct investments
abroad.
A66
3.25
International Statistics • May 1987
MARKETABLE U.S. TREASURY BONDS AND NOTES
Foreign Transactions
M i l l i o n s o f dollars
1987
1986
1987
Country or area
Jan.
July
Aug.
Sept.
Oct.
Nov/
Dec.
Jan.?
Transactions, net purchases or sales (-- ) during period1
1 Estimated total2
29,208
24,060
-359
-279
754
4,993
3,093
-2,228
937
2 Foreign countries 2
28,768
25,210
353
2,705
2,217
3,997
2,778
-270
-543
353
4,303
476
1,917
269
976
773
-1,810
1,701
0
-188
16,996
343
7,649
1,283
132
310
4,668
2,611
0
874
1,345
59
471
-366
-229
-44
1,214
241
0
851
2,544
-46
818
1,756
42
-278
610
-358
0
67
2,442
180
1,050
-64
-25
52
1,207
43
0
105
-685
239
1,133
-313
85
-53
-1,970
195
0
-198
3,135
4
2,560
112
-6
449
153
-136
0
-230
-700
-53
700
38
-70
-498
-308
-510
0
19
1,003
75
-487
-58
-236
-428
1,038
1,099
0
297
1,345
59
471
-366
-229
-44
1,214
241
0
851
4,315
248
2,336
1,731
19,919
17,909
112
308
903
-69
1,131
-159
5,236
3,916
-54
1,255
-1,201
-33
-641
-528
-929
-76
6
280
28
-72
96
5
-137
273
6
198
-37
-294
255
2
-132
683
-1
-160
220
266
32
-78
4,848
4,395
11
-200
-219
69
-314
26
-58
-453
-13
163
75
-139
6
208
-148
186
2
482
97
29
96
-28
-2,124
-2,086
-14
198
-1,201
-33
-641
-528
-929
-76
6
280
442
-436
18
-1,152
-1,477
157
-712
-766
0
-2,984
-2,829
0
-1,462
-1,511
0
996
890
39
314
365
-5
-1,959
-2,010
0
1,478
1,412
0
-712
-766
0
28,768
8,135
20,631
25,210
14,277
10,936
353
1,488
-1,135
2,705
1,448
1,257
2,217
61
2,156
3,997
1,877
2,119
2,778
3,506
-727
-270
138
-408
-543
240
-783
353
1,488
-1,135
-1,547
7
-1,555
5
-718
1
14
2
-239
-1
-205
2
-377
-1
-1,014
1
-76
0
-718
1
3 Europe 2
4
Belgium-Luxembourg
5
Germany 2
6
Netherlands
7
Sweden
8
Switzerland 2
9
United Kingdom
10
Other Western Europe
11
Eastern Europe
12 Canada
13
14
15
16
17
18
19
20
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
All other
21 Nonmonetary international and regional organizations
22
International
23
Latin American regional
-359
MEMO
24 Foreign countries 2
25
Official institutions
26
Other foreign 2
27
28
Oil-exporting countries
Middle East 3
Africa 4
1. Estimated official and private transactions in marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based on
monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
2. Includes U.S. Treasury notes publicly issued to private foreign residents
denominated in foreign currencies.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria,
Interest and Exchange Rates
3.26
A67
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Rate on Feb. 28, 1987
Rate on Feb. 28, 1987
Austria..
Belgium .
Brazil...
Canada..
Denmark
Percent
Month
effective
3.5
8.5
49.0
7.53
7.0
Jan. 1987
Jan. 1987
Mar. 1981
Feb. 1987
Oct. 1983
Country
Percent
France 1
Germany, Fed. Rep. of
Italy
Japan
Netherlands
1. As of the end of February 1981, the rate is that at which the Bank of France
discounts Treasury bills for 7 to 10 days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either discounts
3.27
Rate on Feb. 28, 1987
Country
Country
7.25
3.5
12.0
2.5
4.5
Month
effective
Dec.
Mar.
May
Feb.
Mar.
1986
1986
1986
1987
1986
Norway
Switzerland
United Kingdom 2 .
Venezuela
Percent
Month
effective
8.0
3.5
June 1983
Jan. 1987
or makes advances against eligible commercial paper and/or government commercial banks or brokers. For countries with more than one rate applicable to such
discounts or advances, the rate shown is the one at which it is understood the
central bank transacts the largest proportion of its credit operations.
FOREIGN SHORT-TERM INTEREST RATES
P e r c e n t p e r a n n u m , a v e r a g e s o f daily
figures
1987
1986
Country, or type
1
2
3
4
5
6
7
8
9
10
1984
1985
1986
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Eurodollars
United Kingdom
Canada
Germany
Switzerland
10.75
9.91
11.29
5.96
4.35
8.27
12.16
9.64
5.40
4.92
6.70
10.87
9.18
4.58
4.19
6.06
9.79
8.50
4.56
4.30
5.88
10.05
8.38
4.48
4.13
5.88
11.08
8.45
4.56
3.96
5.96
11.12
8.39
4.67
3.88
6.23
11.30
8.34
4.80
4.08
6.10
10.98
7.95
4.45
3.63
6.32
10.79
7.44
3.94
3.58
Netherlands
France
Italy
Belgium
Japan
6.08
11.66
17.08
11.41
6.32
6.29
9.91
14.86
9.60
6.47
5.56
7.68
12.60
8.04
4.96
5.28
7.09
11.18
7.25
4.68
5.17
7.07
10.84
7.25
4.71
5.32
7.38
10.85
7.29
4.75
5.48
7.51
11.05
7.38
4.39
6.03
7.92
11.40
7.39
4.40
5.58
8.49
11.39
7.88
4.23
5.31
8.36
11.13
7.75
3.98
NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate.
A68
3.28
International Statistics • May 1987
FOREIGN EXCHANGE RATES
Currency units per dollar
1986
Country/currency
1984
1985
Sept.
1
2
3
4
5
6
7
1
Australia/dollar
Austria/schilling
Belgium/franc
Brazil/cruzeiro
Canada/dollar
China, P.R./yuan
Denmark/krone
8
9
10
11
12
13
14
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee
Ireland/pound 1
15
16
17
18
19
20
21
Italy/lira
Japan/yen
Malaysia/ringgit
Netherlands/guilder
N e w Zealand/dollar 1
Norway/krone
Portugal/escudo
22
23
24
25
26
27
28
29
30
31
Singapore/dollar
South Africa/rand 1
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound 1
1987
1986
Oct.
Nov.
Dec.
Jan.
Feb.
87.937
20.005
57.749
1841.50
1.2953
2.3308
10.354
70.026
20.676
59.336
6205.10
1.3658
2.9434
10.598
67.093
15.260
44.662
13.051
1.3896
3.4615
8.0954
62.21
14.349
42.315
13.84
1.3872
3.7150
7.7278
63.83
14.111
41.635
13.98
1.3885
3.7257
7.5607
64.45
14.251
42.069
14.10
1.3863
3.7314
7.6444
65.95
13.996
41.381
14.54
1.3801
3.7314
7.5235
66.09
13.087
38.616
15.58
1.3605
3.7314
7.0591
66.77
12.833
37.789
18.08
1.3340
3.7314
6.8939
6.0007
8.7355
2.8454
112.73
7.8188
11.348
108.64
6.1971
8.9799
2.9419
138.40
7.7911
12.332
106.62
5.0721
6.9256
2.1704
139.93
7.8037
12.597
134.14
4.9190
6.6835
2.0415
135.07
7.8026
12.676
134.53
4.8684
6.5628
2.0054
135.44
7.7999
12.848
135.89
4.9576
6.6206
2.0243
139.12
7.7974
13.076
134.64
4.8980
6.5296
1.9880
140.13
7.7931
13.149
136.78
4.6419
6.2007
1.8596
134.80
7.7698
13.029
143.90
4.5556
6.0760
1.8239
133.88
7.7952
13.062
145.93
1756.10
237.45
2.3448
3.2083
57.837
8.1596
147.70
1908.90
238.47
2.4806
3.3184
49.752
8.5933
172.07
1491.16
168.35
2.5830
2.4484
52.456
7.3984
149.80
1410.23
154.73
2.6174
2.3050
47.950
7.3429
146.83
1387.67
156.47
2.6245
2.2663
50.392
7.3611
147.24
1401.08
162.85
2.6131
2.2870
51.382
7.5401
149.54
1379.44
162.05
2.5966
2.2470
51.339
7.5294
148.61
1317.17
154.83
2.5701
2.0978
53.605
7.1731
142.90
1297.74
153.41
2.5418
2.0592
54.815
7.0067
141.62
2.1325
69.534
807.91
160.78
25.428
8.2706
2.3500
39.633
23.582
133.66
2.2008
45.57
861.89
169.98
27.187
8.6031
2.4551
39.889
27.193
129.74
2.1782
43.952
884.61
140.04
27.933
7.1272
1.7979
37.837
26.314
146.77
2.1680
43.36
883.06
134.10
28.297
6.9191
1.6537
36.885
26.120
146.98
2.1777
44.42
879.22
133.43
28.407
6.8901
1.6433
36.647
26.129
142.64
2.1922
44.37
873.54
136.10
28.471
6.9683
1.6858
36.438
26.278
142.38
2.1900
44.94
868.43
134.49
28.532
6.9081
1.6647
36.001
26.239
143.93
2.1510
47.70
862.86
129.54
28.578
6.6188
1.5616
35.304
26.037
150.54
2.1410
47.97
857.38
128.62
28.662
6.5016
1.5403
35.056
25.933
152.80
138.19
143.01
112.22
107.15
106.58
107.90
106.54
101.13
MEMO
32 United States/dollar 2
1. Value in U . S . cents.
2. Index of weighted-average exchange value of U.S. dollar against currencies
of other G-10 countries plus Switzerland. March 1973 = 100. Weights are 1972-76
global trade of each of the 10 countries. Series revised as of August 1978. For
description and back data, see "Index of the Weighted-Average Exchange Value
of the U.S. Dollar: Revision" on p. 700 of the August 1978 BULLETIN.
99.46
3. Currency reform.
NOTE. Averages of certified noon buying rates in N e w York for cable transfers.
Data in this table also appear in the Board's G.5 (405) release. For address, see
inside front cover.
69
Guide to Tabular Presentation,
Statistical Releases, and Special Tables
GUIDE TO TABULAR
Symbols and
c
e
p
r
*
PRESENTATION
Abbreviations
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when
about half of the figures in that column are changed.)
Amounts insignificant in terms of the last decimal place
shown in the table (for example, less than 500,000
when the smallest unit given is millions)
General
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
....
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed
issues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
STATISTICAL
obligations of the Treasury. "State and local government"
also includes municipalities, special districts, and other political subdivisions.
In some of the tables details do not add to totals because of
rounding.
RELEASES
List Published Semiannually,
with Latest Bulletin
Reference
Anticipated schedule of release dates for periodic releases
SPECIAL
Issue
December 1986
Page
A87
August
December
March
January
November
December
March
May
July
December
February
May
A70
A68
A68
A70
A70
A76
A70
A76
A70
A70
A70
A70
TABLES
Published Irregularly,
with Latest Bulletin
Reference
Assets and liabilities of commercial banks, March 31, 1983
Assets and liabilities of commercial banks, June 30, 1983
Assets and liabilities of commercial banks, September 30, 1983
Assets and liabilities of commercial banks, December 31, 1985
Assets and liabilities of U.S. branches and agencies of foreign banks,
Assets and liabilities of U.S. branches and agencies of foreign banks,
Assets and liabilities of U.S. branches and agencies of foreign banks,
Assets and liabilities of U.S. branches and agencies of foreign banks,
Terms of lending at commercial banks, May 1986
Terms of lending at commercial banks, August 1986
Terms of lending at commercial banks, November 1986
Terms of lending at commercial banks, February 1987
Special tables begin on next page.
March 31, 1986
June 30, 1986
September 30, 1986
December 31, 1986
1983
1983
1984
1987
1986
1986
1987
1987
1986
1986
1987
1987
A70
4.23
Special Tables • May 1987
TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 2-6, 1987'
A. Commercial and Industrial Loans 2
Characteristics
Amount
of loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Weighted
average
maturity3
Days
Loan rate (percent)
Weighted
average
effective 4
Standard
Interquartile
range6
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
ALL BANKS
1 Overnight8
15,399,940
2 One month and under
3
Fixed rate
4
Floating rate
7,737,558
5,981,071
1,756,488
5 Over one month and under a year . . .
6
Fixed rate
7
Floating rate
9,459,714
3,900,457
5,559,258
8 Demand 9
9
Fixed rate
10
Floating rate
5,431,743
409,577
5,022,166
487
725
230
6.86
6.49-7.04
85.6
19
18
22
7.38
7.14
8.21
6.81-7.60
6.76-7.31
7.04-8.86
72.8
71.0
78.8
8.5
9.9
4.0
151
113
178
8.09
7.75
8.33
7.11-8.78
6.91-7.87
7.71-8.84
73.1
65.8
78.2
7.7
10.1
6.0
8.18
7.10
8.26
7.71-8.84
6.54-7.74
7.71-8.84
83.7
80.6
4.0
6.3
3.8
7.46
6.70-7.79
79.2
6.7
7.07
10.56
9.76
8.76
7.69
6.94
6.58-7.25
9.93-12.39
8.88-12.38
8.84-11.02
7.71-9.85
7.05-8.06
6.57-7.17
79.0
24.2
18.0
25.6
43.8
66.3
81.3
7.7
.1
2.1
.2
2.9
9.0
7.9
8.26
9.73
9.45
9.05
8.71
8.36
7.85
7.71-8.84
8.84-10.43
8.66-9.92
8.30-9.65
7.78-9.38
7.76-8.84
7.04-8.33
79.6
67.3
69.0
74.9
78.0
80.8
81.9
4.8
3.4
1.5
2.0
2.8
5.7
5.9
151
205
148
11 Total short terra
38,028,957
12 Fixed rate (thousands of dollars)
13
1-24
14
25-49
15
50-99
16
100-499
17
500-999
18
1000 and over
25,481,985
328,649
171,646
150,041
426,753
290,051
24,114,846
453
8
32
63
182
661
8,365
23
112
117
133
90
66
19
19 Floating rate (thousands of dollars)....
20
1-24
21
25-49
22
50-99
23
100-499
24
500-999
25
1000 and over
12,546,972
439,620
489,566
788,340
2,431,898
1,081,056
7,316,492
139
9
34
67
190
631
3,289
136
153
144
162
151
149
127
26 Total long term
7,154,803
310
8.50
7.71-9.04
78.7
27 Fixed rate (thousands of dollars)
28
1-99
29
100-499
30
500-999
31
1000 and over
1,735,926
159,809
193,759
46,475
1,335,882
188
20
226
634
8,286
8.41
11.04
10.04
9.02
7.84
6.87-9.04
9.92-11.85
9.38-10.47
7.71-10.47
6.76-8.44
73.4
6.6
12.8
52.9
91.0
2.0
32 Floating rate (thousands of dollars)
33
1-99
34
100-499
35
500-999
36
1000 and over
5,418,876
269,359
529,155
356,616
4,263,747
393
27
211
663
5,862
8.53
9.81
8.99
8.55
8.39
7.76-9.04
8.84-11.02
8.16-9.38
7.76-9.11
7.71-9.04
80.3
46.3
64.0
78.4
84.7
9.0
2.4
6.2
8.6
9.8
87.2
73.7
79.2
72.9
7.1
10.6
12.3
5.4
11.20
.8
.8
3.3
2.3
Loan rate (percent)
Days
Prime rate"
Effective 4
Nominal 10
LOANS MADE BELOW PRIME12
37
38
39
40
Overnight8
One month and under
Over one month and under a year . . .
Demand 9
14,362,487
5,966,654
3,901,031
1,405,330
9,614
4,205
613
948
41 Total short term
25,635,502
2,383
42 Fixed rate
43 Floating rate
22,475,849
3,159,654
3,662
684
17
126
18
105
6.75
6.96
6.99
6.83
6.53
6.74
6.63
7.51
7.51
7.60
7.55
6.84
6.63
7.52
82.1
8.6
6.82
6.96
6.61
6.75
7.51
7.61
81.7
84.7
8.9
6.7
7.67
7.73
91.1
89.7
3.8
6.3
6.81
Months
44 Total long term
1,681,276
45 Fixed rate . . . .
46 Floating rate . .
818,875
862,401
For notes see end of table.
6.91
792
1,050
7.00
7.18
6.86
6.96
Financial Markets
4.23
Continued
A. Commercial and Industrial Loans
Characteristics
Amount
of loans
(thousands
of dollars)
Continued
Average
size
(thousands
of dollars)
Loan rate (percent)
Weighted
average
maturity3
Days
Weighted
average
effective 4
Standard
error5
Interquartile
range6
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
LARGE B A N K S
1 Overnight8
11,140,547
6.45-7.14
11,322
6.82-7.56
6.81-7.42
7.01-8.30
76.8
73.4
92.2
8.2
8.9
4.8
2 One month and under
3
Fixed rate
4
Floating rate
5,361,941
4,384,372
977,569
2,606
4,168
972
20
19
23
7.25
7.13
7.74
5 Over one month and under a year
6
Fixed rate
7
Floating rate
5,390,766
2,692,047
2,698,720
557
1,869
328
138
106
170
7.57
7.20
7.94
6.91-8.14
6.84-7.34
7.19-8.57
79.6
75.4
83.8
9.4
13.0
5.8
2,542,134
148,906
2,393,228
296
709
286
7.95
6.67
8.03
6.96-8.84
6.63-8.30
7.23-8.84
76.6
82.6
76.3
.9
2.3
24,435,388
1,147
39
7.25
6.71-7.67
82.5
7.4
7.03
82.4
23.7
33.3
35.8
74.3
81.3
82.6
8.5
.0
9.24
9.11
8.08
7.74
7.01
6.63-7.25
8.84-10.70
8.78-9.89
8.30-9.86
7.11-8.81
7.10-8.24
6.63-7.25
7.91
9.29
9.05
8.91
8.58
8.35
7.67
7.04-8.57
8.30-9.96
8.30-9.65
8.30-9.38
7.76-9.11
7.76-8.84
6.91-8.30
82.5
80.6
80.7
81.0
84.6
83.7
82.2
4.2
.1
8 Demand 9
9
Fixed rate
10
Floating rate
11 Total short term
2.2
12 Fixed rate (thousands of dollars) .
13
1-24
14
25-49
15
50-99
16
100-499
17
500-999
18
1000 and over
18,251,668
7,753
7,312
13,651
101,194
142,968
17,978,790
4,973
10
33
63
237
696
9,872
21
92
82
75
48
56
21
19 Floating rate (thousands of dollars).
20
1-24
21
25-49
22
50-99
23
100-499
24
500-999
25
1000 and over
6,183,720
71,400
92,170
189,133
803,507
432,844
4,594,666
351
34
67
203
645
4,394
127
177
180
191
154
132
119
26 Total long term
5,209,731
1,600
8.26
.17
7.52-9.04
88.6
27 Fixed rate (thousands of dollars)
28
1-99
29
100-499
30
500-999
31
1000 and over
1,132,070
7,582
18,445
25,191
1,080,852
2,275
26
219
622
12,747
7.86
12.37
9.66
8.42
7.78
1.07
.52
.51
.64
1.35
6.76-8.44
9.92-12.96
7.76-10.47
7.50-9.92
6.76-8.44
92.4
37.8
70.9
62.9
93.9
.3
.3
8.1
6.2
32 Floating rate (thousands of dollars)
33
1-99
34
100-499
35
500-999
36
1000 and over
4,077,661
38,923
185,705
215,870
3,637,162
1,478
34
230
696
7,179
8.37
9.17
8.69
8.47
8.34
.20
.14
.14
.10
.23
7.71-9.04
8.30-9.65
7.76-9.31
7.76-9.04
7.71-9.04
87.5
70.1
85.3
91.4
87.6
9.5
4.0
7.9
7.7
9.7
11
10.00
1.6
.0
2.5
3.7
8.6
.6
1.0
2.0
4.5
4.8
Months
.0
Loan rate (percent)
Prime rate"
Days
Effective 4
Nominal 10
6.80
7.00
6.97
6.70
6.58
6.78
6.78
6.50
7.50
7.50
7.51
7.53
90.5
75.0
79.5
57.3
7.9
9.9
11.1
6.87
6.66
7.50
83.5
8.6
6.87
6.89
6.65
6.69
7.50
7.52
83.6
82.5
9.2
4.2
7.52
100.0
100.0
100.0
3.8
.0
7.50
7.53
LOANS M A D E BELOW PRIME12
Overnight8
One month and under
Over one month and under a year
Demand 9
10,140,915
4,324,907
3,143,949
815,327
12,737
5,794
5,708
2,226
41 Total short term
18,425,097
7,491
42 Fixed rate
43 Floating rate
16,276,719
2,148,378
8,746
3,589
1,317,237
5,243
6.89
11,239
3,591
6.79
6.97
37
38
39
40
18
123
19
114
.0
Months
44 Total long term
45 Fixed rate
46 Floating rate . .
For notes see end of table.
609,772
707,465
6.69
6.76
7.0
A71
A70
4.23
Special Tables • May 1987
TERMS OF LENDING AT COMMERCIAL BANKS SURVEY of Loans Made, February 2-6, 1987'—Continued
A. Commercial and Industrial Loans — Continued 2
Characteristics
Amount
of loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Weighted
maturity
Loan rate (percent)
3
Days
Standard
average
effective 4
quartile
range6
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
OTHER BANKS
1
Overnight8
4,259,393
3,553
*
6.66
.54
6.38-6.88
2
3
4
One month and under
Fixed rate
Floating rate
2,375,618
1,596,699
778,919
172
222
117
18
17
21
7.69
7.16
8.78
.23
.12
.31
6.71-8.07
6.63-7.13
7.18-10.48
63.8
64.6
5
6
7
Over one month and under a year . . .
Fixed rate
Floating rate
4,068,948
1,208,410
2,860,538
49
28
71
168
129
185
8.79
8.99
8.71
.08
.19
.11
7.75-9.38
7.19-10.79
7.79-9.38
64.5
44.4
73.0
5.5
3.8
8
9
10
Demand 9
Fixed rate
Floating rate
2,889,609
260,671
2,628,938
106
145
103
*
8.38
7.35
8.48
.11
.34
.07
7.76-8.87
6.54-7.34
7.76-8.87
84.5
84.4
84.5
5.5
9.4
5.2
11
Total short term
13,593,568
109
68
7.84
.19
6.66-8.81
73.3
5.5
12
13
14
15
16
17
18
Fixed rate (thousands of dollars) . . . .
7,230,317
320,895
164,334
136,390
325,559
147,083
6,136,056
138
8
32
63
170
630
5,780
27
112
118
140
102
77
13
7.18
11.23
10.26
9.82
8.97
7.65
6.71
.27
.26
.13
.22
.38
.21
.07
6.45-7.18
10.00-12.40
8.97-12.38
8.87-11.02
7.71-10.06
6.93-7.76
6.45-6.95
70.3
24.2
17.3
24.6
34.3
51.8
77.5
5.6
.1
19
20
21
22
23
24
25
Floating rate (thousands of dollars)....
6,363,252
368,219
397,3%
599,207
1,628,391
648,212
2,721,826
88
9
34
67
183
621
2,308
146
149
137
153
150
159
140
8.60
9.81
9.54
9.10
8.77
8.37
8.14
.12
.07
.14
.11
.10
.06
.20
7.76-9.38
8.84-10.47
8.77-9.95
8.30-9.80
7.79-9.38
7.76-8.84
7.34-8.78
76.8
64.7
66.3
73.0
74.8
79.0
81.5
5.3
4.0
1.7
2.4
3.1
6.5
7.7
26
Total long term
27
28
29
30
31
Fixed rate (thousands of dollars) . . . .
32
33
34
35
36
Floating rate (thousands of dollars)....
1-24
25-49
50-99
100-499
500-999
1000 and over
1-24
25-49
50-99
100-499
500-999
1000 and over
*
*
62.0
9.3
12.4
3.0
6.2
2.1
.2
3.1
14.3
6.0
Months
1-99
100-499
500-999
1000 and over
1-99
100-499
500-999
1000 and over
1,945,072
98
55
9.14
.20
8.20-9.92
52.1
6.8
603,856
152,228
175,314
21,284
255,030
69
19
226
649
3,337
48
56
40
60
47
9.44
10.97
10.07
9.73
8.07
.45
.14
.35
.66
.61
7.65-10.47
9.92-11.57
9.38-10.47
9.31-10.47
6.65-9.04
37.9
5.0
6.7
41.1
78.6
5.4
.8
1,341,216
230,436
343,450
140,746
626,585
121
26
202
619
2,838
58
47
56
65
62
9.01
9.92
9.16
8.67
8.66
.12
.19
.22
.19
.05
8.24-9.38
8.84-11.02
8.30-9.65
8.11-9.31
8.17-9.38
58.5
42.3
52.4
58.4
67.7
10.1
10.1
.0
.0
12.2
7.5
2.1
5.2
Loan rate (percent)
Prime rate11
Days
Effective
4
Nominal
10
LOANS M A D E BELOW PRIME12
37
38
39
40
Overnight8
One month and under
Over one month and under a year . . .
Demand 9
4,221,573
1,641,747
757,081
590,004
41
Total short term
42
43
Fixed rate
Floating rate
44
45
46
*
6,051
2,441
130
529
16
142
*
6.63
6.84
7.10
7.01
6.42
6.62
6.91
6.80
7.53
7.53
8.01
7.57
79.4
70.4
78.2
94.3
5.0
12.4
17.2
12.9
7,210,405
869
21
6.76
6.55
7.58
78.5
8.6
6,199,130
1,011,275
1,450
251
14
85
6.70
7.11
6.49
6.90
7.54
7.83
76.7
89.4
11.9
Total long term
364,039
227
48
7.85
7.58
8.38
55.5
9.8
Fixed rate
Floating rate
209,103
154,936
213
248
51
43
7.62
8.16
7.37
7.86
8.18
8.64
65.1
42.5
14.9
8.1
Months
For notes see end of table.
2.8
Financial Markets
4.23
A73
Continued
B. Construction and Land Development Loans
Loan rate (percent) 13
Characteristics
Amount
of loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Weighted
average
maturity
(months) 3
Weighted
average
effective 4
Standard
error5
Loans
made under
commitment
(percent)
Interquartile
range 6
Participation
loans
(percent)
ALL BANKS
1 Total
3,390,669
213
9
8.64
.26
7.77-9.11
86.9
17.5
2 Fixed rate (thousands of dollars) . . . .
1-24
4
25 49
5
50-99
6
100-499
7
500 and over
1,460,309
45,221
10,969
17,399
105,388
1,281,332
249
10
30
75
265
10,170
7
6
9
9
23
5
8.37
11.42
9.59
12.45
11.50
7.94
.40
.33
.37
.49
.40
.31
7.55-8.60
10.52-12.18
8.84-9.93
9.96-13.80
11.02-13.24
7.55-8.37
89.1
56.8
13.4
81.9
13.5
97.3
11.1
.8
3.4
.0
1.3
12.4
8 Floating rate (thousands of dollars) . .
9
1 24
10
25-49
11
50-99
100-499
1?
13
500 and over
1,930,359
48,236
71,617
72,869
287,233
1,450,403
192
9
37
69
196
3,541
11
9
7
10
12
11
8.84
9.56
10.81
9.17
9.23
8.62
.16
.08
.31
.11
.12
.13
8.30-9.38
9.11-9.96
9.38-11.56
8.84-9.92
8.84-9.92
8.03-8.85
85.2
71.3
59.4
62.0
77.8
89.5
22.4
.4
.8
3.0
2.7
29.1
By type of construction
14 Single family
15 Multifamily
16 Nonresidential
389,673
253,734
2,747,261
42
277
491
13
7
9
10.02
8.87
8.42
.26
.15
.29
9.11-11.02
8.70-8.84
7.76-8.84
68.5
94.4
88.8
2.5
5.0
20.8
2,203,753
1,879
8
8.09
.23
7.55-8.70
93.5
16.4
1,222,669
775
6,218
10
3
12
7.87
10.31
.45
.60
7.55-8.20
9.92-10.47
97.1
88.3
12.7
.0
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
LARGE B A N K S 1 4
1 Total
2 Fixed rate (thousands of dollars) . . . .
3
1-24
4
25 49
5
50-99
6
100 499
500 and over
7
*
*
*
*
*
1,219,021
13,544
3
7.87
.45
7.55-8.20
97.1
12.7
8 Floating rate (thousands of dollars) . .
9
1 24
25-49
10
11
50 99
100-499
17
500 and over
13
981,085
3,441
3,487
7,729
59,380
907,049
1,005
10
33
73
230
5,843
13
12
11
10
14
13
8.36
9.21
9.27
8.92
8.87
8.32
.11
.09
.16
.21
.16
.12
7.77-8.84
8.84-9.38
8.84-9.92
8.84-9.38
8.57-9.11
7.77-8.84
89.1
94.8
94.3
93.2
91.9
88.8
20.9
4.9
3.0
4.2
2.8
22.4
34,231
217,143
1,952,380
102
1,013
3,135
7
7
8
8.70
8.79
8.00
.23
.18
.23
7.76-9.38
11.02-8.70
7.55-8.57
86.1
98.3
93.1
22.0
4.6
17.6
By type of construction
14 Single family
15 Multifamily
16 Nonresidential
*
OTHER B A N K S 1 4
1,186,915
81
11
9.65
.23
8.84-9.92
74.6
19.7
Fixed rate (thousands of dollars) . . . .
1 24
25-49
50-99
100-499
500 and over
237,641
44,446
10,617
16,871
103,395
62,311
42
10
29
75
265
1,731
21
6
9
8
23
31
10.94
11.44
9.60
12.51
11.55
9.37
.38
.41
.54
.67
.52
.37
9.92-12.13
10.75-12.18
8.84-9.93
9.96-13.80
11.02-13.24
9.18-10.34
48.4
56.3
10.5
82.3
12.2
100.0
2.6
.8
2.3
.0
.7
7.7
8 Floating rate (thousands of dollars) . .
9
1 24
25 49
10
50-99
11
100-499
1?
500 and over
13
949,274
44,796
68,130
65,141
227,854
543,355
105
9
38
68
189
2,136
9
9
7
10
12
8
9.32
9.59
10.89
9.20
9.32
9.12
.13
.07
.52
.06
.19
.16
8.84-9.42
9.20-9.96
9.39-13.24
8.84-9.92
8.84-9.92
8.84-9.39
81.2
69.5
57.6
58.3
74.1
90.8
23.9
.1
.7
2.8
2.7
40.2
By type of construction
14 Single family
15 Multifamily
16 Nonresidential
355,442
36,591
794,882
39
52
160
13
13
11
10.15
9.36
9.44
.27
.17
.30
9.38-11.02
9.11-9.92
8.84-9.39
66.8
71.4
78.3
.6
7.4
28.7
1 Total
7
3
4
5
6
7
For notes see end of table.
A70
4.23
Special Tables • May 1987
TERMS OF LENDING AT COMMERCIAL BANKS SURVEY of Loans Made, February 2-6, 19871—Continued
C. Loans to Farmers 14
Size class of loans (thousands)
Characteristics
All sizes
$10-24
$1-9
$25-49
$250
and over
$100-249
$50-99
ALL BANKS
1 Amount of loans (thousands of dollars)
2 Number of loans
3 Weighted average maturity (months) 3
4 Weighted average interest rate (percent) 4
5
Standard error5
6
Interquartile range6
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
1
8
9
10
11
12
Percentage of amount of loans
13 With floating rates
14 Made under commitment
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
15
16
17
18
19
20
1,046,760
43,767
10.9
106,737
28,010
7.9
135,565
9,075
9.4
97,908
2,871
7.1
126,118
1,912
14.4
227,717
1,539
15.5
352,714
360
8.5
10.20
.56
8.51-11.63
11.59
.58
10.51-12.43
11.18
.67
10.25-12.15
11.06
.79
10.25-11.90
10.80
.69
9.58-11.80
10.78
.82
9.96-11.83
8.59
.80
7.76-9.00
10.62
9.86
10.42
11.20
10.72
8.99
11.63
11.21
11.61
11.45
11.67
11.77
11.37
11.17
11.28
10.72
10.79
10.79
11.39
10.46
11.17
11.27
10.02
65.1
47.4
43.5
30.5
42.5
32.1
42.5
31.5
13.1
7.2
55.0
3.4
4.4
16.9
12.4
7.3
60.3
9.1
1.8
9.1
17.0
10.2
51.6
3.1
7.5
10.6
26.2
4.4
54.6
3.7
381,624
3,825
8.9
6,706
1,740
8.8
8.47
.52
7.76-9.00
*
9.72
*
10.74
*
10.97
*
10.93
8.86
*
8.86
*
*
*
*
10.27
8.86
8.25
57.4
40.0
55.9
34.3
95.2
73.8
*
14.3
13.9
7.3
*
*
*
44.6
67.6
50.2
*
*
*
*
*
*
9.9
12.9
7.7
30.9
11,464
784
10.7
14,757
421
9.3
23,641
347
8.1
45,228
325
10.1
279,829
208
8.6
10.07
.53
9.30-10.43
9.39
.64
8.77-9.92
9.22
.75
8.51-9.84
9.30
.60
8.77-9.84
9.00
.78
8.52-9.50
8.19
.21
7.76-8.30
8.96
8.02
8.37
9.73
9.00
8.44
9.77
9.60
9.78
12.08
10.73
9.91
9.05
8.79
9.32
9.03
8.86
9.51
10.06
*
9.44
93.7
78.5
78.2
65.2
12.4
9.7
38.1
1.5
1.7
36.5
*
LARGE B A N K S 1 4
1 Amount of loans (thousands of dollars)
2 Number of loans
3 Weighted average maturity (months) 3
4 Weighted average interest rate (percent) 4
5
Standard error5
6
Interquartile range6
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
7
8
9
10
11
12
Percentage of amount of loans
13 With floating rates
14 Made under commitment
15
16
17
18
19
20
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
*
*
*
*
*
9.47
9.58
9.19
9.21
8.04
*
*
*
*
*
*
*
9.17
9.49
8.86
8.25
91.4
78.1
93.4
76.4
91.1
86.3
96.4
83.5
93.9
77.5
11.1
3.9
56.1
10.9
2.9
15.1
26.8
21.7
18.7
22.8
*
*
41.6
28.1
38.7
*
23.8
665,136
39,942
11.5
100,032
26,269
7.8
11.20
.21
10.51-11.95
11.50
11.64
11.11
11.47
*
*
39.4
3.1
42.7
6.6
*
9.2
*
*
*
*
*
*
*
16.9
28.3
38.6
39.0
124,102
8,291
9.3
83,151
2,450
6.8
102,477
1,565
15.2
182,489
1,214
16.5
*
11.69
.23
10.78-12.47
11.34
.18
11.38-12.31
11.39
.21
10.59-12.05
11.15
.33
10.26-11.88
11.22
.21
11.02-11.83
*
11.74
11.26
11.73
11.40
11.78
11.99
11.73
11.22
11.40
11.40
OTHER B A N K S 1 4
1 Amount of loans (thousands of dollars)
2 Number of loans
3 Weighted average maturity (months) 3
4 Weighted average interest rate (percent) 4
5
Standard error5
6
Interquartile range6
1
8
9
10
11
12
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
For notes see end of table.
11.00
11.09
*
10.83
11.10
11.76
*
*
*
*
11.07
*
*
*
*
11.08
*
*
*
*
*
*
*
*
*
Financial Markets
4.23
A75
Continued
C. Loans to Farmers 1
-Continued
Size class of loans (thousands)
Characteristics
All sizes
Percentage of amount of loans
13 With floating rates
14 Made under commitment
15
16
17
18
19
20
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
$1-9
$25-49
$50-99
48.6
29.5
41.1
28.1
37.9
27.8
33.5
23.5
13.5
5.8
64.6
4.5
6.0
5.6
12.5
7.5
60.6
9.0
1.7
8.7
16.1
10.9
52.8
27.0
*
56.8
*
*
*
*Fewer than 10 sample loans.
1. The survey of terms of bank lending to business collects data on gross loan
extensions made during the first full business week in the mid-month of each
quarter by a sample of 340 commercial banks of all sizes. A subsample of 250
banks also report loans to farmers. The sample data are blown up to estimate the
lending terms at all insured commercial banks during that week. The estimated
terms of bank lending are not intended for use in collecting the terms of loans
extended over the entire quarter or residing in the portfolios of those banks.
Construction and land development loans include both unsecured loans and loans
secured by real estate. Thus, some of the construction and land development
loans would be reported on the statement of condition as real estate loans and the
remainder as business loans. Mortgage loans, purchased loans, foreign loans, and
loans of less than $1,000 are excluded from the survey.
As of Dec. 31, 1985, assets of most of the large banks were at least $5.5 billion.
For all insured banks total assets averaged $165 million.
2. Beginning with the August 1986 survey respondent banks provide information on the type of base rate used to price each commercial and industrial loan
made during the survey week. This reporting change is reflected in the new
column on the most common base pricing rate in table A and footnote 13 from
table B.
3. Average maturities are weighted by loan size and exclude demand loans.
4. Effective (compounded) annual interest rates are calculated from the stated
rate and other terms of the loan and weighted by loan size.
5. The chances are about two out of three that the average rate shown would
differ by less than this amount from the average rate that would be found by a
complete survey of lending at all banks.
$10-24
7.8
9.3
*
$250
and over
$100-249
45.9
22.1
*
*
*
*
*
45.3
77.4
*
*
*
49.6
29.4
*
*
*
*
*
*
*
*
*
*
6. The interquartile range shows the interest rate range that encompasses the
middle 50 percent of the total dollar amount of loans made.
7. The most common base rate is that rate used to price the largest dollar
volume of loans. Base pricing rates include the prime rate (sometimes referred to
as a bank's "basic" or "reference" rate); the federal funds rate; domestic money
market rates other than the federal funds rate; foreign money market rates; and
other base rates not included in the foregoing classifications.
8. Overnight loans are loans that mature on the following business day.
9. Demand loans have no stated date of maturity.
10. Nominal (not compounded) annual interest rates are calculated from survey
data on the stated rate and other terms of the loan and weighted by loan size.
11. The prime rate reported by each bank is weighted by the volume of loans
extended and then averaged.
12. The proportion of loans made at rates below prime may vary substantially
from the proportion of such loans outstanding in banks' portfolios.
13. 73.4 percent of construction and land development loans were priced
relative to the prime rate.
14. Among banks reporting loans to farmers (Table C), most "large banks"
(survey strata 1 to 3) had over $600 million in total assets, and most "other banks"
(survey strata 4 to 6) had total assets below $600 million.
The survey of terms of bank lending to farmers now includes loans secured by
farm real estate. In addition, the categories describing the purpose of farm loans
have now been expanded to include "purchase or improve farm real estate." In
previous surveys, the purpose of such loans was reported as "other".
A76
4.30
Special Tables • May 1987
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 19861
M i l l i o n s o f dollars
All states 2
Item
1 Total assets4
Total
including
IBFs
New York
IBFs
only 3
Total
including
IBFs
California
IBFs
only 3
Total
including
IBFs
Illinois
IBFs
only 3
Total
including
IBFs
IBFs
only 3
396,787
198,364
293,649
154,829
62,481
28,753
21,884
9,287
2 Claims on nonrelated parties
3 Cash and balances due from depository institutions
4
Cash items in process of collection and unposted
debits
5
Currency and coin (U.S. and foreign)
6
Balances with depository institutions in United States
7
U.S. branches and agencies of other foreign banks
(including their IBFs)
8
Other depository institutions in United States
(including their IBFs)
y
Balances with banks in foreign countries and with
foreign central banks
10
Foreign branches of U.S. banks
11
Other banks in foreign countries and foreign central
banks
12
Balances with Federal Reserve Banks
364,933
95,109
168,549
77,287
272,765
79,062
131,247
63,615
55,721
8,946
25,129
8,329
21,531
5,820
9,031
4,782
326
24
53,923
0
n.a.
39,783
295
17
43,456
0
n.a.
31,356
7
2
6,111
0
n.a.
5,564
5
2
3,478
0
n.a.
2,531
45,861
37,329
36,347
29,133
5,799
5,460
3,064
2,412
8,062
2,454
7,110
2,222
313
104
414
119
38,461
2,425
37,504
2,188
33,102
2,132
32,259
1,901
2,784
176
2,765
175
2,282
102
2,251
102
36,036
2,376
35,316
n.a.
30,971
2,191
30,358
n.a.
2,609
41
2,590
n.a.
2,180
53
2,149
n.a.
13 Total securities and loans
221,805
86,301
156,104
64,330
38,775
15,811
14,441
4,000
28,488
6,303
8,972
n.a.
23,180
5,980
6,780
n.a.
3,749
153
1,915
n.a.
784
92
199
n.a.
14 Total securities, book value
13
U.S. Treasury
16
Obligations of U.S. government agencies and
corporations
17
Other bonds, notes, debentures and corporate stock
(including state and local securities)
2,411
n.a.
2,334
n.a.
19,774
8,972
14,866
6,780
3,527
1,915
692
199
16,459
9,435
4,664
2,360
2,565
1,387
185
994
14,186
8,011
4,336
1,839
1,614
803
185
625
1,201
750
97
354
490
288
0
202
534
317
192
25
79
54
0
25
193,478
162
193,316
77,362
32
77,329
133,030
105
132,924
57,567
18
57,550
35,070
44
35,025
13,910
14
13,896
13,661
4
13,657
3,801
0
3,801
8,669
63,182
35,064
31,379
3,685
68
43,281
17,558
16,015
1,543
4,006
44,987
23,874
20,597
3,277
39
28,830
9,704
8,335
1,369
2,542
12,626
8,261
7,974
287
29
10,103
5,873
5,741
132
467
3,901
2,395
2,336
59
0
3,129
1,728
1,693
35
181
27,937
1,432
26,505
6,001
43
25,679
1,428
24,251
651
100
21,013
1,240
19,773
4,057
0
19,126
1,236
17,890
500
5
4,360
155
4,205
842
0
4,229
155
4,074
116
30
1,476
17
1,459
1,018
0
1,401
17
1,384
23
35 Commercial and industrial loans
36
U.S. addressees (domicile)
37
Non-U.S. addressees (domicile)
38 Acceptances of other banks
39
U.S. banks
40
Foreign banks
41 Loans to foreign governments and official institutions
(including foreign central banks)
42 Loans for purchasing or carrying securities
(secured and unsecured)
43 All other loans
90,250
67,127
23,123
1,042
659
383
18,723
87
18,636
19
0
19
58,686
39,388
19,298
837
484
353
16,044
41
16,003
19
0
19
16,477
13,945
2,532
154
152
2
2,094
39
2,055
0
0
0
7,734
7,352
383
21
1
20
290
0
290
0
0
0
16,261
14,395
13,500
11,986
1,568
1,514
423
359
5,749
2,324
35
190
4,966
1,990
35
114
760
101
0
55
17
80
0
0
44 All other assets
45
Customers' liability on acceptances outstanding
46
U.S. addressees (domicile)
47
Non-U.S. addressees (domicile)
48
Other assets including other claims on nonrelated
parties
49 Net due from related depository institutions 5
50
Net due from head office and other related depository
institutions 5
51
Net due from establishing entity, head offices,
and other related depository institutions 5
31,565
22,197
15,148
7,049
2,395
n.a.
n.a.
n.a.
23,418
16,116
10,017
6,098
1,689
n.a.
n.a.
n.a.
6,800
5,573
4,765
808
500
n.a.
n.a.
n.a.
736
299
284
15
171
n.a.
n.a.
n.a.
9,368
31,854
2,395
29,815
7,302
20,884
1,689
23,582
1,227
6,760
500
3,624
438
353
171
256
31,854
n.a.
20,884
n.a.
6,760
n.a.
n.a.
29,815
n.a.
23,582
n.a.
3,624
n.a.
18 Federal funds sold and securities purchased under
agreements to resell
19
U.S branches and agencies of other foreign banks . . . .
20
Commercial banks in United States
21
Other
22 Total loans, gross
23
Less: Unearned income on loans
24
Equals: Loans, net
Total loans, gross, by category
23 Real estate loans
26 Loans to depository institutions
27
Commercial banks in United States (including IBFs) .
28
U.S. branches and agencies of other foreign banks .
29
Other commercial banks in United States
30
Other depository institutions in United States
(including IBFs)
31
Banks in foreign countries
32
Foreign branches of U.S. banks
33
Other banks in foreign countries
34 Other financial institutions
69
n.a.
0
353
n.a.
n.a.
256
52 Total liabilities4
396,787
198,364
293,649
154,829
62,481
28,753
21,884
9,287
53 Liabilities to nonrelated parties
342,909
169,754
262,631
132,629
56,343
25,927
12,596
6,331
U.S. Branches and Agencies
4.30
All
Continued
Millions of dollars
All states 2
Total
xcluding
IBFs
54 Total deposits and credit balances
55
Individuals, partnerships, and corporations
56
U.S. addressees (domicile)
57
Non-U.S. addressees (domicile)
58
Commercial banks in United States (including IBFs)
59
U.S. branches and agencies of other foreign banks
60
Other commercial banks in United States
61
Banks in foreign countries
62
Foreign branches of U.S. banks
63
Other banks in foreign countries • • • •
64
Foreign governments and official institutions
(including foreign central banks)
65
All other deposits and credit balances
66
Certified and official checks
67 Transaction accounts and credit balances
(excluding IBFs)
Individuals, partnerships, and corporations
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Commercial banks in United States (including IBFs)
U.S. branches and agencies of other foreign banks
Other commercial banks in United States
Banks in foreign countries
Foreign branches of U.S. banks
Other banks in foreign countries
Foreign governments and official institutions
(including foreign central banks)
78
All other deposits and credit balances
79
Certified and official checks
68
69
70
71
72
73
74
75
76
77
80 Demand deposits (included in transaction accounts
and credit balances)
81
Individuals, partnerships, and corporations
82
U.S. addressees (domicile)
83
Non-U.S. addressees (domicile)
84
Commercial banks in United States (including IBFs)
85
U.S. branches and agencies of other foreign banks
86
Other commercial banks in United States
87
Banks in foreign countries
88
Foreign branches of U.S. banks
89
Other banks in foreign countries
90
Foreign governments and official institutions
(including foreign central banks)
91
All other deposits and credit balances
92
Certified and official checks
93 Non-transaction accounts (including MMDAs,
excluding IBFs)
94
Individuals, partnerships, and corporations
95
U.S. addressees (domicile)
96
Non-U.S. addressees (domicile)
97
Commercial banks in United States (including IBFs)
98
U.S. branches and agencies of other foreign banks
99
Other commercial banks in United States
100
Banks in foreign countries
101
Foreign branches of U.S. banks
102
Other banks in foreign countries
103
Foreign governments and official institutions
(including foreign central banks)
104
All other deposits and credit balances
105 IBF deposit liabilities
106
Individuals, partnerships, and corporations
107
U.S. addressees (domicile)
108
Non-U.S. addressees (domicile)
109
Commercial banks in United States (including IBFs)
110
U.S. branches and agencies of other foreign banks
111
Other commercial banks in United States
112
Banks in foreign countries
113
Foreign branches of U.S. banks
114
Other banks in foreign countries.
115
Foreign governments and official institutions
(including foreign central banks)
116
All other deposits and credit balances
For notes see end of table.
California
New York
IBFs
only 3
Total
excluding
IBFs
IBFs
only 3
Total
excluding
IBFs
Illinois
IBFs
only 3
Total
excluding
IBFs
IBFs
only 3
56,181
42,957
34,642
8,315
9,313
4,508
4,805
1,757
256
1,501
133,630
14,185
366
13,819
46,725
39,583
7,142
67,248
8,576
58,675
47,336
35,010
29,324
5 686
8,616
3,975
4,641
1 688
256
1,432
117,627
11,020
366
10,654
39,411
32,965
6,446
61,890
7,381
54,508
1,637
1,529
495
1,034
49
10
39
14
0
14
9,337
358
0
358
5,349
4 868
481
3,587
809
2,779
3,002
2,396
2,291
105
576
506
70
3
0
3
2,369
62
0
62
1,315
1,183
132
976
202
774
882
443
829
4,924
548
857
424
742
4,765
541
17
6
23
43
0
2
1
23
16
0
6,242
3,362
2,260
1,102
393
115
278
963
50
913
n.a.
5,341
2,666
1,827
839
343
109
235
912
50
862
n a.
165
131
78
53
4
0
4
3
0
3
n a.
264
235
232
4
1
0
1
2
0
2
540
156
829
533
144
742
1
2
23
2
1
23
5,078
2,752
1,801
952
127
15
112
785
2
783
4,323
2,191
1,460
732
78
9
70
736
2
734
103
72
34
38
4
0
4
3
0
3
253
225
221
4
1
0
1
2
0
2
n a.
n.a.
n a.
473
112
829
466
109
742
1
1
23
2
1
23
49,939
39,596
32,382
7,214
8,920
4,393
4,527
793
206
587
41,996
32,344
27,497
4,847
8,272
3,866
4,406
776
206
570
1,472
1,398
417
981
45
10
36
10
0
10
2,738
2,161
2,059
101
575
506
69
1
0
1
n a.
324
280
343
287
n .a.
n a.
133,630
14,185
366
13,819
46,725
39,583
7,142
67,248
8, 576
58,672
4,924
548
n a.
n a.
4,765
541
n .a.
n a.
n a.
0
0
15
3
117,627
11,020
366
10,654
39,411
32,965
6,446
61,890
7,381
54,508
n.a.
9,337
358
0
358
5,349
4 868
481
3,587
809
2,779
43
0
n a.
2.369
62
0
62
1,310
1,183
132
976
202
774
16
0
A76
4.30
Special Tables • May 1987
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 30, 1986'—Continued
Millions of dollars
All states 2
Item
117 Federal funds purchased and securities sold under
agreements to repurchase
118
U.S. branches and agencies of other foreign banks . . .
119
Other commercial banks in United States
120
Other
121 Other borrowed money
122 Owed to nonrelated commercial banks in United States
(including IBFs)
123
Owed to U.S. offices of nonrelated U.S. banks
124
Owed to U.S. branches and agencies of
nonrelated foreign banks
125 Owed to nonrelated banks in foreign countries
126
Owed to foreign branches of nonrelated U.S. banks . .
127
Owed to foreign offices of nonrelated foreign banks...
128 Owed to others
Total
including
IBFs
New York
IBFs
only 3
Total
including
IBFs
California
IBFs
only 3
Total
including
IBFs
Illinois
Total
including
IBFs
IBFs
only 3
IBFs
only 3
38,851
9,862
12,140
16,848
82,621
2,239
1,154
69
1,015
31,867
29,861
6,320
8,086
15,455
43,761
1,091
428
59
604
12,442
7,053
3,001
3,098
953
31,297
953
669
0
284
15,281
1,133
378
588
167
5,472
51
1
0
50
3,763
56,135
25,026
13,576
2,497
29,910
15,474
3,785
906
22,496
7,908
8,670
1,374
2,394
755
856
47
31,110
17,542
2,623
14,918
8,344
11,079
17,003
2,532
14,470
1,289
14,436
7,899
750
7,150
5,952
2,879
7,421
669
6,753
1,235
14,589
6,565
1,528
5,037
2,236
7,296
6,557
1,523
5,034
53
1,638
2,948
298
2,650
131
<08
2,907
293
2,614
0
129 All other liabilities
130
Branch or agency liability on acceptances executed
and outstanding
Other liabilities to nonrelated parties
131
32,227
2,017
24,046
1.469
7,019
355
620
148
25,624
6,603
n a.
2,017
18,893
5,153
n a.
1,469
6,164
855
n a.
355
305
315
n.a.
148
132 Net due to related depository institutions 5
133
Net due to head office and other related
depository institutions 5
134
Net due to establishing entity, head office, and other
related depository institutions 5
53,878
28,610
31,018
22,200
6,138
2,827
9,288
2,956
53,878
n a.
31,018
n a.
6,138
n a.
9,288
n a.
n.a.
28,610
n.a.
22,200
n.a.
2,827
n.a.
2,956
MEMO
135 Non-interest bearing balances with commercial banks
in United States
136 Holding of commercial paper included in total loans . . . .
137 Holding of own acceptances included in commercial
and industrial loans
138 Commercial and industrial loans with remaining maturity
of one year or less
139
Predetermined interest rates
140
Floating interest rates
141 Commercial and industrial loans with remaining maturity
of more than one year
142
Predetermined interest rates
143
Floating interest rates
3,286
824
370
3,364
56,396
33,645
22,751
33,892
11,470
22,421
3,112
673
370
35,134
19,330
15,804
23,588
7,106
16,483
0
1,074
2,006
n a.
74
68
n.a.
10,963
8,103
2,859
5,514
2,337
3,178
32
82
0
133
n a.
5,512
3,502
2,010
2,222
1,306
916
n.a.
U.S. Branches and Agencies
4.30
A79
Continued
M i l l i o n s of dollars
All states 2
Item
144 Components of total nontransaction accounts,
included in total deposits and credit balances of
nontransactional accounts, including IBFs
145
Time CDs in denominations of $100,000 or more
146
Other time deposits in denominations of $100,000
or more
147
Time CDs in denominations of $100,000 or more
with remaining maturity of more than
12 months
Total
excluding
IBFs
New York
Total
excluding
IBFs
IBFs
only 3
62,069
39,634
t
J
n.a.
7,155
15,280
All states 2
Total
including
IBFs
148 Market value of securities held
150 Immediately available funds with a maturity greater than
one day included in other borrowed money
IBFs
only 3
t
J
53,486
33,336
n.a.
6,669
13,480
New York
Total
including
IBFs
IBFs
only 3
Illinois
Total
excluding
IBFs
IBFs
only 3
Total
excluding
IBFs
1,487
1,040
!
3.345
2.346
257
190
n.a.
I
California
IBFs
only 3
Total
including
IBFs
IBFs
only 3
9,117
23,172
7,136
3,314
1,696
53,651
n.a.
29,766
n.a.
21,577
n.a.
1. Data are aggregates of categories reported on the quarterly form FFIEC 002,
"Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign
Banks." Details may not add to totals because of rounding. This form was first
used for reporting data as of June 30, 1980, and was revised as of December 31,
1985. From November 1972 through May 1980, U.S. branches and agencies of
foreign banks had filed a monthly FR 886a report. Aggregate data from that report
were available through the Federal Reserve statistical release G.I 1, last issued on
July 10, 1980. Data in this table and in the G . l l tables are not strictly comparable
because of differences in reporting panels and in definitions of balance sheet
items.
2. Includes the District of Columbia.
3. Effective December 1981, the Federal Reserve Board amended Regulations
D and Q to permit banking offices located in the United States to operate
International Banking Facilities (IBFs). As of December 31, 1985, data for IBFs
are reported in a separate column. These data are either included in or excluded
from the total columns as indicated in the headings. The notation "n.a." indicates
223
119
175
IBFs
only 3
I
1
n.a.
824
Illinois
28,045
487
California
Total
including
IBFs
787
1,419
IBFs
only 3
207
n.a.
47
that no IBF data are reported for that item, either because the item is not an
eligible IBF asset or liability or because that level of detail is not reported for
IBFs. From December 1981 through September 1985, IBF data were included in
all applicable items reported.
4. Total assets and total liabilities include net balances, if any, due from or due
to related banking institutions in the United States and in foreign countries (see
footnote 5). On the former monthly branch and agency report, available through
the G . l l statistical release, gross balances were included in total assets and total
liabilities. Therefore, total asset and total liability figures in this table are not
comparable to those in the G . l l tables.
5. "Related banking institutions" includes the foreign head office and other
U.S. and foreign branches and agencies of the bank, the bank's parent holding
company, and majority-owned banking subsidiaries of the bank and of its parent
holding company (including subsidiaries owned both directly and indirectly).
6. In some cases two or more offices of a foreign bank within the same
metropolitan area file a consolidated report.
80
Federal Reserve Board of Governors
PAUL A . VOLCKER,
Chairman
Vice Chairman
MARTHA R.
SEGER
MANUEL H . JOHNSON,
WAYNE D.
OFFICE OF BOARD
OFFICE OF STAFF DIRECTOR
MONETARY AND FINANCIAL
MEMBERS
Assistant to the Board
Assistant to the Board
S T E V E N M . R O B E R T S , Assistant
to the Chairman
B O B S . M O O R E , Special Assistant
to the Board
JOSEPH
R.
D O N A L D
W I N N ,
D O N A L D
L.
N O R M A N D
K O H N ,
R . V .
DIVISION
OF RESEARCH
AND
STATISTICS
Director
Deputy Director
M I C H A E L J . P R E L L , Deputy
Director
J A R E D J . E N Z L E R , Associate
Director
D A V I D E . L I N D S E Y , Associate
Director
E L E A N O R J . S T O C K W E L L , Associate
Director
M A R T H A B E T H E A , Deputy Associate
Director
T H O M A S D . S I M P S O N , Deputy Associate
Director
L A W R E N C E S L I F M A N , Deputy Associate
Director
P E T E R A . T I N S L E Y , Deputy Associate
Director
S U S A N J . L E P P E R , Assistant
Director
R I C H A R D D . P O R T E R , Assistant
Director
M A R T H A S . S C A N L O N , Assistant
Director
J O Y C E K . Z I C K L E R , Assistant
Director
L E V O N H . G A R A B E D I A N , Assistant
Director
(Administration)
JAMES
BRADFIELD,
OFFICE OF THE
WILLIAM
W .
BARBARA
R.
JAMES
Deputy Staff Director
Special Assistant to the Board
BERNARD,
DIVISION
General Counsel
J . V I R G I L M A T T I N G L Y , J R . , Deputy General
Counsel
R I C H A R D M . A S H T O N , Associate
General Counsel
O L I V E R I R E L A N D , Associate
General Counsel
R I C K I R . T I G E R T , Assistant
General Counsel
M A R Y E L L E N A . B R O W N , Assistant
to the General Counsel
MICHAEL
FOR
POLICY
COYNE,
J.
LEGAL
ANGELL
SECRETARY
Secretary
Associate Secretary
Associate Secretary
WILES,
LOWREY,
M C A F E E ,
L.
E D W A R D
KICHLINE,
C.
ETTIN,
DIVISION OF CONSUMER
AND COMMUNITY
AFFAIRS
DIVISION
Director
G L E N N E . L O N E Y , Assistant
Director
E L L E N M A L A N D , Assistant
Director
D O L O R E S S . S M I T H , Assistant
Director
GRIFFITH
L.
DIVISION OF BANKING
SUPERVISION AND
REGULATION
Director
Deputy Director'
D O N E . K L I N E , Associate
Director
F R E D E R I C K M . S T R U B L E , Associate
Director
W I L L I A M A . R Y B A C K , Deputy Associate
Director
S T E P H E N C . S C H E M E R I N G , Deputy Associate
Director
R I C H A R D S P I L L E N K O T H E N , Deputy Associate
Director
H E R B E R T A . B I E R N , Assistant
Director
J O E M . C L E A V E R , Assistant
Director
A N T H O N Y C O R N Y N , Assistant
Director
J A M E S I . G A R N E R , Assistant
Director
J A M E S D . G O E T Z I N G E R , Assistant
Director
M I C H A E L G . M A R T I N S O N , Assistant
Director
R O B E R T S . P L O T K I N , Assistant
Director
S I D N E Y M . S U S S A N , Assistant
Director
L A U R A M . H O M E R , Securities
Credit Officer
WILLIAM
FRANKLIN
TAYLOR,
D .
OF INTERNATIONAL
FINANCE
G A R W O O D ,
DREYER,
1. On loan from the Federal Reserve Bank of Chicago.
Director
Senior Associate Director
C H A R L E S J . S I E G M A N , Senior Associate
Director
D A V I D H . H O W A R D , Deputy Associate
Director
R O B E R T F . G E M M I L L , Staff
Adviser
D O N A L D B . A D A M S , Assistant
Director
P E T E R H O O P E R I I I , Assistant
Director
K A R E N H . J O H N S O N , Assistant
Director
R A L P H W . S M I T H , J R . , Assistant
Director
E D W I N
LARRY
M .
J.
T R U M A N ,
PROMISEL,
81
and Official Staff
H . ROBERT HELLER
OFFICE OF
STAFF DIRECTOR
FOR
OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK
ACTIVITIES
MANAGEMENT
Staff Director
Assistant Staff Director
P O R T I A W . T H O M P S O N , Equal Employment
Opportunity
Programs Officer
S.
D A V I D
FROST,
E D W A R D
T.
THEODORE
DIVISION
D A V I D
L.
R.
OF
PERSONNEL
Director
Assistant Director
W O O D , Assistant
Director
S H A N N O N ,
W .
OFFICE OF THE
GEORGE
BRENT
E.
L.
CONTROLLER
Controller
Assistant Controller
LIVINGSTON,
B O W E N ,
DIVISION
OF SUPPORT
ROBERT
E.
FRAZIER,
GEORGE
M .
LOPEZ,
SERVICES
Director
Assistant Director
OFFICE OF THE EXECUTIVE
INFORMATION RESOURCES
A L L E N
E.
STEPHEN
BEUTEL,
R.
DIVISION
SYSTEMS
DIRECTOR FOR
MANAGEMENT
Executive Director
Associate Director
MALPHRUS,
OF HARDWARE
AND
SOFTWARE
Director
Assistant Director
E L I Z A B E T H B . R I G G S , Assistant
Director
R O B E R T J . Z E M E L , Assistant
Director
BRUCE
M .
THOMAS
BEARDSLEY,
C.
JUDD,
DIVISION OF APPLICATIONS
STATISTICAL
SERVICES
WILLIAM
D A Y
W .
R.
C.
PATRICIA
A .
DEVELOPMENT
Director
Assistant Director
S T E V E N S , Assistant
Director
W E L C H , Assistant
Director
JONES,
RADEBAUGH,
RICHARD
Staff Director
RESERVE
JR.,
Director
Associate Director
D A V I D L . R O B I N S O N , Associate
Director
C . W I L L I A M S C H L E I C H E R , J R . , Associate
Director
C H A R L E S W . B E N N E T T , Assistant
Director
A N N E M . D E B E E R , Assistant
Director
J A C K D E N N I S , J R . , Assistant
Director
E A R L G . H A M I L T O N , Assistant
Director
J O H N H . P A R R I S H , Assistant
Director
FLORENCE M . Y O U N G ,
Adviser
C L Y D E
WEIS,
CHARLES
ALLISON,
DIVISION OF FEDERAL
BANK
OPERATIONS
H .
ELLIOTT
JOHN
E.
MULRENIN,
AND
C.
FARNSWORTH,
M C E N T E E ,
82
Federal Reserve Bulletin • May 1987
Federal Open Market Committee
FEDERAL OPEN MARKET
PAUL
WAYNE
D.
EDWARD
ROBERT
VOLCKER,
Chairman
E.
H.
ANGELL
G.
H.
A.
COMMITTEE
ROBERT
MANUEL
BOEHNE
SILAS
BOYKIN
MARTHA
HELLER
H.
JOHNSON
L.
DAVID
BERNARD,
PETER D .
SAM
FEDERAL ADVISORY
JOHN
R.
SEGER
STERN
W .
E.
LANG,
LINDSEY,
Manager for Domestic Operations, System Open Market Account
Manager for Foreign Operations, System Open Market Account
STERNLIGHT,
Y.
CROSS,
COUNCIL
F.
MCGILLICUDDY,
JOHN
G.
MEDLIN
JULIEN
L.
MCCALL,
D E W A L T
H.
P.
L A WARE,
JOHN
F.
MCGILLICUDDY,
President
Vice President
JR.,
ANKENY,
JR.,
AND
F.
CHARLES
DONALD
HERBERT
WILLIAM
J.
V.
PROCHNOW,
KORSVIK,
T.
N.
PHILLIPS GILTNER,
Directors
III, Seventh District
Eighth District
D E W A L T H . A N K E N Y , JR., Ninth District
F . P H I L L I P S G I L T N E R , Tenth District
G E R A L D W . F R O N T E R H O U S E , Eleventh District
J O H N D. M A N G E L S , Twelfth District
First District
Second District
S A M U E L A . M C C U L L O U G H , Third District
J U L I E N L . M C C A L L , Fourth District
J O H N G . M E D L I N , JR., Fifth District
B E N N E T T A . B R O W N , Sixth District
JOHN
H.
Vice Chairman
Associate Economist
Associate Economist
M I C H A E L J . P R E L L , Associate
Economist
A R T H U R J . R O L N I C K , Associate
Economist
H A R V E Y R O S E N B L U M , Associate
Economist
K A R L A . S C H E L D , Associate
Economist
C H A R L E S J . S I E G M A N , Associate
Economist
T H O M A S D . S I M P S O N , Associate
Economist
RICHARD
KOHN,
R . V .
GARY
CORRIGAN,
KEEHN
Secretary and Staff Adviser
Assistant Secretary
R O S E M A R Y R . L O N E Y , Deputy Assistant
Secretary
M I C H A E L B R A D F I E L D , General
Counsel
J A M E S H . O L T M A N , Deputy General
Counsel
JAMES L. KICHLINE,
Economist
E D W I N M . T R U M A N , Economist
(International)
P E T E R F O U S E K , Associate
Economist
DONALD
NORMAND
GERALD
FISHER
BRANDIN,
SECRETARY
ASSOCIATE
SECRETARY
83
and Advisory Councils
CONSUMER
ADVISORY
COUNCIL
E D W A R D
STEVEN
W .
N.
Seattle, Washington, Chairman
Columbia, South Carolina, Vice Chairman
LANGE,
HAMM,
M. K O L E S A R , Cleveland, Ohio
B. L E R N E R , Dallas, Texas
F R E D S. M C C H E S N E Y , Chicago, Illinois
R I C H A R D L. D. M O R S E , Manhattan, Kansas
H E L E N E . N E L S O N , Mill Valley,California
S A N D R A R. P A R K E R , Richmond, Virginia
J O S E P H L. P E R K O W S K I , Centerville, Minnesota
B R E N D A L. S C H N E I D E R , Detroit, Michigan
J A N E S H U L L , Philadelphia, Pennsylvania
T E D L. S P U R L O C K , Dallas, Texas
M E L R. S T I L L E R , Boston, Massachusetts
C H R I S T O P H E R J . S U M N E R , Salt Lake City, Utah
E D W A R D J . W I L L I A M S , Chicago, Illinois
M I C H A E L Z O R O Y A , St. Louis, Missouri
Richmond, Virginia
Washington, D.C.
J U D I T H N. B R O W N , Edina, Minnesota
M I C H A E L S. C A S S I D Y , New York, New York
T H E R E S A F A I T H C U M M I N G S , Springfield, Illinois
R I C H A R D B. D O B Y , Denver, Colorado
R I C H A R D H . F I N K , Washington, D.C.
N E I L J. F O G A R T Y , Jersey City, New Jersey
S T E P H E N G A R D N E R , Dallas, Texas
K E N N E T H A. H A L L , Jackson, Mississippi
E L E N A G . H A N G G I , Little Rock, Arkansas
R O B E R T J. H O B B S , Boston, Massachusetts
R A M O N E. J O H N S O N , Salt Lake City, Utah
R O B E R T W. J O H N S O N , West Lafayette, Indiana
EDWIN
B.
JONATHAN
BROOKS,
A.
JR.,
JOHN
ALAN
BROWN,
THRIFT INSTITUTIONS
ADVISORY
COUNCIL
MICHAEL
R.
GERALD
M.
JOHN
DICUS,
Mobile, Alabama
Topeka, Kansas
B E T T Y G R E G G , Phoenix, Arizona
T H O M A S A. K I N S T , Hoffman Estates, Illinois
R A Y M A R T I N , Los Angeles, California
C.
CZARNECKI,
Denver, Colorado, President
Houston, Texas, Vice President
WISE,
JAMIE J. JACKSON,
F. M C C O R M I C K , Livingston, New Jersey
M. P A V L I S K A , Arlington, Massachusetts
H E R S C H E L R O S E N T H A L , Miami, Florida
W I L L I A M G . S C H U E T T , Milwaukee, Wisconsin
G A R Y L. S I R M O N , Walla Walla, Washington
DONALD
JANET
84
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PUBLIC
POLICY
AND
CAPITAL
FORMATION.
1981.
326
pp.
$13.50 each.
Looseleaf; updated at least monthly. (Requests must be prepaid.)
Consumer and Community Affairs Handbook. $75.00 per
year.
Monetary Policy and Reserve Requirements Handbook.
$75.00 per year.
Securities Credit Transactions Handbook. $75.00 per year.
Federal Reserve Regulatory Service. 3 vols. (Contains all
three Handbooks plus substantial additional material.)
$200.00 per year.
Rates for subscribers outside the United States are as
follows and include additional air mail costs:
Federal Reserve Regulatory Service, $250.00 per year.
Each Handbook, $90.00 per year.
FEDERAL RESERVE REGULATORY SERVICE.
THE
U . S .
ECONOMY
IN
AN
INTERDEPENDENT
WELCOME
TO THE
PROCESSING
A N
FEDERAL
WORLD:
A
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MULTICOUNTRY MODEL,
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APPLICATION
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$10.00 per copy.
$ 6.50 per copy.
$ 7.50 per copy.
$11.50 per copy.
$12.50 per copy.
1985.
1986.
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CONSUMER EDUCATION
PAMPHLETS
Short pamphlets suitable for classroom use. Multiple
are available without charge.
copies
Alice in Debitland
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
Fair Credit Billing
Federal Reserve Glossary
A Guide to Business Credit and the Equal Credit Opportunity
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Guide to Federal Reserve Regulations
How to File A Consumer Credit Complaint
If You Borrow To Buy Stock
If You Use A Credit Card
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Organization and Advisory Committees
What Truth in Lending Means to You
85
PAMPHLETS FOR FINANCIAL
INSTITUTIONS
Short pamphlets on regulatory compliance, primarily suitable for banks, bank holding companies and creditors.
REVIEW
OF
THE
TECHNIQUES
133.
RELATIONSHIPS
VENTION,
AMONG
AND
LITERATURE,
EXCHANGE
INTEREST
RATES:
by Bonnie
1983. Out of print.
VESTIGATION,
Limit of 50 copies
134.
SMALL
EMPIRICAL
INTERVENTION:
The Board of Directors' Opportunities in Community Reinvestment
The Board of Directors' Role in Consumer Law Compliance
Combined Construction/Permanent Loan Disclosure and
Regulation Z
Community Development Corporations and the Federal Reserve
Construction Loan Disclosures and Regulation Z
Finance Charges Under Regulation Z
How to Determine the Credit Needs of Your Community
Regulation Z: The Right of Rescission
The Right to Financial Privacy Act
Signature Rules in Community Property States: Regulation B
Signature Rules: Regulation B
Timing Requirements for Adverse Action Notices: Regulation B
What An Adverse Action Notice Must Contain: Regulation B
Understanding Prepaid Finance Charges: Regulation Z
AND
by
Kenneth Rogoff. October 1983. 15 pp.
OF
REVIEW
INTER-
EMPIRICAL
IN-
Loopesko. November
E.
MODELS
A
RATES,
A N
EXCHANGE
OF
THE
MARKET
LITERATURE,
by
Ralph W. Tryon. October 1983. 14 pp. Out of print.
135.
SMALL
EMPIRICAL
INTERVENTION:
MODELS
OF
APPLICATIONS
EXCHANGE
MARKET
TO C A N A D A ,
GERMA-
by Deborah J . Danker, Richard A.
Haas, Dale W. Henderson, Steven A. Symansky, and
Ralph W. Tryon. April 1985. 27 pp. Out of print.
NY,
136.
AND
JAPAN,
T H E EFFECTS OF FISCAL POLICY ON THE U . S .
ECONO-
MY, by Darrell Cohen and Peter B. Clark. January
1984. 16 pp. Out of print.
137.
THE
IMPLICATIONS
FINANCIAL
FOR
BANK
DEREGULATION,
MERGER
POLICY
INTERSTATE
OF
BANKING,
AND
FINANCIAL
SUPERMARKETS,
by Stephen A.
Rhoades. February 1984. Out of print.
138.
ANTITRUST
LINES,
LAWS,
AND
THE
CAL B A N K I N G
JUSTICE
LIMITS
OF
DEPARTMENT
GUIDE-
CONCENTRATION
IN
LO-
by James Burke. June 1984.
MARKETS,
14 pp. Out of print.
139.
SOME
IMPLICATIONS
OF
FINANCIAL
INNOVATIONS
IN
by Thomas D. Simpson and
Patrick M. Parkinson. August 1984. 20 pp.
THE
STAFF STUDIES: Summaries
Bulletin
Only Printed in the
Studies and papers on economic and financial subjects that
are of general interest. Requests to obtain single copies of
the full text or to be added to the mailing list for the series
may be sent to Publications Services.
140.
UNITED
STATES,
GEOGRAPHIC
MARKET
DELINEATION:
by John
1984. 38 pp. Out of print.
THE
141.
A
LITERATURE,
COMPARISON
REVIEW
OF
OF DIRECT DEPOSIT A N D CHECK
PAY-
by William Dudley. November 1984.
15 pp. Out of print.
MENT
142.
COSTS,
MERGERS
AND
ACQUISITIONS
by Stephen
1984. 30 pp. Out of print.
BANKS,
Staff Studies 115-125 are out of print.
A
Wolken. November
D.
143.
1960-83,
COMPLIANCE
THE
COSTS
ELECTRONIC
AND
BY
COMMERCIAL
Rhoades. December
A .
CONSUMER
F U N D
TRANSFER
BENEFITS
ACT:
OF
RECENT
E V I D E N C E , by Frederick J. Schroeder. April
1985. 23 pp. Out of print.
SURVEY
114.
MULTIBANK
DENCE
HOLDING
ON
COMPANIES:
COMPETITION
AND
RECENT
EVI-
PERFORMANCE
IN
144.
by Timothy J. Curry and John T.
Rose. Jan. 1982. 9 pp.
BANKING
126.
DEFINITION A N D MEASUREMENT OF EXCHANGE
127.
U . S .
EXPERIENCE
WITH
EXCHANGE
MARKET
128.
U.S.
EXPERIENCE
VENTION:
WITH
SEPTEMBER
EXCHANGE
MARKET
1977-DECEMBER
1979,
ING
145.
146.
U . S .
EXPERIENCE
WITH
VENTION: OCTOBER
EXCHANGE
I98O-OCTOBER
MARKET
1981,
INTER-
EFFECTS
OF
TERNATIONAL
EXCHANGE
TRADE
RATE
AND
147.
VARIABILITY
ON
IN-
148.
CALCULATIONS OF PROFITABILITY FOR U . S .
DEUTSCHE
MARK
INTERVENTION,
TIME-SERIES
TWEEN
STUDIES
EXCHANGE
OF
RATES
THE
AND
149.
INTERVENTION:
BEA
CHARGES
THEIR
ROLE
AS
IMPACT
OF
THE
LOANS
REVISIONS
THE
THE
IN
OPPORTUNITY
IN
CONLEND-
LAWS,
by
A
ON
SOURCE
OF
BANK
INCOME
CONSUMERS,
PRIME
IN
BY
RATE
IN
THE
COMMERCIAL
THE
PRICING
OF
MONETARY
BANKS,
OF THE
MONETARY
SERVICES
(DIVISIA)
MACROECONOMIC
ECONOMIC
AND
RECOVERY
AGGREGATES,
SECTORAL
TAX
ACT:
EFFECTS
SOME
OF
SIMULA-
OPERATING
BANKING
PERFORMANCE
BEFORE
AND
OF ACQUIRED
AFTER
FIRMS
ACQUISITION,
by
Stephen A. Rhoades. April 1986. 32 pp.
150.
RELATIONSHIP
FOR
R E S U L T S , by Flint Brayton and Peter B. Clark.
December 1985. 17 pp.
R.
Jacobson. October 1983. 8 pp.
132.
COSTS
TRUTH
TION
DOLLAR-
by Laurence
THE
THE
BLES:
131.
SERVICE
INDEXES
VARIA-
A R E V I E W O F T H E L I T E R A T U R E , by Victoria S .
Farrell with Dean A. DeRosa and T. Ashby McCown.
January 1984. Out of print.
CREDIT
THE
by Helen
T. Farr and Deborah Johnson. December 1985. 42 pp.
by Margaret
OTHER ECONOMIC
COMPLIANCE
1977-84,
by Thomas F. Brady. November 1985. 25 pp.
L. Greene. August 1984. 36 pp.
130.
EQUAL
BUSINESS
Mar-
garet L. Greene. October 1984. 40 pp. Out of print.
129.
IN
REGULATIONS:
by Glenn B .
Canner and Robert D. Kurtz. August 1985. 31 pp. Out
of print.
L.
INTERby
AND
AND
INTER-
VENTION:
JANUARY-MARCH
1975,
by Margaret
Greene. August 1984. 16 pp. Out of print.
ECONOMIES
Gregory E. Elliehausen and Robert D. Kurtz. May
1985. 10 pp.
MAR-
K E T I N T E R V E N T I O N , by Donald B . Adams and Dale
W. Henderson. August 1983. 5 pp. Out of print.
SCALE
SUMER CREDIT
MARKETS,
STATISTICAL
ING:
A
COST
ACCOUNTING
REEXAMINATION
AND
AN
MODELS
IN
BANK-
APPLICATION,
by
John T. Rose and John D. Wolken. May 1986. 13 pp.
86
151.
RESPONSES
TO
DEREGULATION:
RETAIL
DEPOSIT
by Patrick I .
Mahoney, Alice P. White, Paul F. O'Brien, and Mary
M. McLaughlin. January 1987. 30 pp.
PRICING
FROM
1983
THROUGH
1985,
REPRINTS OF BULLETIN
ARTICLES
Most of the articles reprinted do not exceed 12 pages.
Limit of 10 copies
Foreign Experience with Targets for Money Growth. 10/83.
Intervention in Foreign Exchange Markets: A Summary of
Ten Staff Studies. 11/83.
A Financial Perspective on Agriculture. 1/84.
Survey of Consumer Finances, 1983. 9/84.
Bank Lending to Developing Countries. 10/84.
Survey of Consumer Finances, 1983: A Second Report.
12/84.
Union Settlements and Aggregate Wage Behavior in the
1980s. 12/84.
The Thrift Industry in Transition. 3/85.
A Revision of the Index of Industrial Production. 7/85.
Financial Innovation and Deregulation in Foreign Industrial
Countries. 10/85.
Recent Developments in the Bankers Acceptance Market.
1/86.
The Use of Cash and Transaction Accounts by American
Families. 2/86.
Financial Characteristics of High-Income Families. 3/86.
U. S. International Transactions in 1985. 5/86.
Prices, Profit Margins, and Exchange Rates. 6/86.
Agricultural Banks under Stress. 7/86.
Foreign Lending by Banks: A Guide to International and
U.S. Statistics. 10/86.
Recent Developments in Corporate Finance. 11/86.
87
Index to Statistical Tables
References
are to pages A3-A79 although the prefix 'A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 19, 20, 74
Assets and liabilities (See also Foreigners)
Banks, by classes, 18-20
Domestic finance companies, 37
Federal Reserve Banks, 10
Financial institutions, 26
Foreign banks, U.S. branches and agencies, 21, 76-79
Nonfinancial corporations, 36
Automobiles
Consumer installment credit, 40, 41
Production, 47, 48
BANKERS acceptances, 9, 23, 24
Bankers balances, 18-20 (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 34
Rates 24
Branch banks, 21, 55, 76-79
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 36
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 18
Federal Reserve Banks, 10
Central banks, discount rates, 67
Certificates of deposit, 24
Commercial and industrial loans
Commercial banks, 16, 19, 70-72, 76
Weekly reporting banks, 19-21
Commercial banks
Assets and liabilities, 18-20
Commercial and industrial loans, 16, 18, 19, 20, 21,
70-72, 76
Consumer loans held, by type, and terms, 40, 41
Loans sold outright, 19
Nondeposit funds, 17
Real estate mortgages held, by holder and property, 39
Terms of lending, 70-75
Time and savings deposits, 3
Commercial paper, 23, 24, 37
Condition statements (See Assets and liabilities)
Construction, 44, 49
Consumer installment credit, 40, 41
Consumer prices, 44, 50
Consumption expenditures, 51, 52
Corporations
Nonfinancial, assets and liabilities, 36
Profits and their distribution, 35
Security issues, 34, 65
Cost of living (See Consumer prices)
Credit unions, 26, 40 (See also Thrift institutions)
Currency and coin, 18
Currency in circulation, 4, 13
Customer credit, stock market, 25
DEBITS to deposit accounts, 15
Debt (See specific types of debt or securities)
Demand deposits
Banks, by classes, 18-21
Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 22
Turnover, 15
Depository institutions
Reserve requirements, 7
Reserves and related items, 3, 4, 5, 12
Deposits (See also specific types)
Banks, by classes, 3, 18-20, 21
Federal Reserve Banks, 4, 10
Turnover, 15
Discount rates at Reserve Banks and at foreign central
banks and foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
EMPLOYMENT, 45
Eurodollars, 24
FARM mortgage loans, 39
Federal agency obligations, 4, 9, 10, 11, 31, 32
Federal credit agencies, 33
Federal finance
Debt subject to statutory limitation, and types and
ownership of gross debt, 30
Receipts and outlays, 28, 29
Treasury financing of surplus, or deficit, 28
Treasury operating balance, 28
Federal Financing Bank, 28, 33
Federal funds, 5, 17, 19, 20, 21, 24, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 38, 39
Federal Housing Administration, 33, 38, 39
Federal Land Banks, 39
Federal National Mortgage Association, 33, 38, 39
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 4, 10, 11, 30
Federal Reserve credit, 4, 5, 10, 11
Federal Reserve notes, 10
Federal Savings and Loan Insurance Corporation insured
institutions, 26
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 37
Business credit, 37
Loans, 40, 41
Paper, 23, 24
Financial institutions
Loans to, 19, 20, 21
Selected assets and liabilities, 26
Float, 4
Flow of funds, 42, 43
Foreign banks, assets and liabilities of U.S. branches and
agencies, 21, 76-79
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4, 10, 19, 20
Foreign exchange rates, 68
Foreign trade, 54
Foreigners
Claims on, 55, 57, 60, 61, 62, 64
Liabilities to, 20, 54, 55, 57, 58, 63, 65, 66
88
GOLD
Certificate account, 10
Stock, 4, 54
Government National Mortgage Association, 33, 38, 39
Gross national product, 51
HOUSING, new and existing units, 49
INCOME, personal and national, 44, 51, 52
Industrial production, 44, 47
Installment loans, 40, 41
Insurance companies, 26, 30, 39
Interest rates
Bonds, 24
Commercial banks, 70-75
Consumer installment credit, 41
Federal Reserve Banks, 6
Foreign central banks and foreign countries, 67
Money and capital markets, 24
Mortgages, 38
Prime rate, 23
Time and savings deposits, 8
International capital transactions of United States, 53-67
International organizations, 57, 58, 60, 63, 64
Inventories, 51
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 18, 19, 20, 21, 26
Commercial banks, 3, 16, 18-20, 39
Federal Reserve Banks, 10, 11
Financial institutions, 26, 39
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 18-20
Commercial banks, 3, 16, 18-20, 70-75, 76
Federal Reserve Banks, 4, 5, 6, 10, 11
Financial institutions, 26, 39
Insured or guaranteed by United States, 38, 39
MANUFACTURING
Capacity utilization, 46
Production, 46, 48
Margin requirements, 25
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 5
Reserve requirements, 7
Mining production, 48
Mobile homes shipped, 49
Monetary and credit aggregates, 3, 12
Money and capital market rates, 24
Money stock measures and components, 3, 13
Mortgages (See Real estate loans)
Mutual funds, 35
Mutual savings banks, 8 (See also Thrift institutions)
NATIONAL defense outlays, 29
National income, 51
OPEN market transactions, 9
PERSONAL income, 52
Prices
Consumer and producer, 44, 50
Stock market, 25
Prime rate, 23
Producer prices, 44, 50
Production, 44, 47
Profits, corporate, 35
REAL estate loans
Banks, by classes, 16, 19, 20, 39
Financial institutions, 26
Terms, yields, and activity, 38
Type of holder and property mortgaged, 39
Repurchase agreements, 5, 17, 19, 20, 21
Reserve requirements, 7
Reserves
Commercial banks, 18
Depository institutions, 3, 4, 5, 12
Federal Reserve Banks, 10
U.S. reserve assets, 54
Residential mortgage loans, 38
Retail credit and retail sales, 40, 41, 44
SAVING
Flow of funds, 42, 43
National income accounts, 51
Savings and loan associations, 8, 26, 39, 40, 42 (See also
Thrift institutions)
Savings banks, 26, 39, 40
Savings deposits (See Time and savings deposits)
Securities (See specific types)
Federal and federally sponsored credit agencies, 33
Foreign transactions, 65
New issues, 34
Prices, 25
Special drawing rights, 4, 10, 53, 54
State and local governments
Deposits, 19, 20
Holdings of U.S. government securities, 30
New security issues, 34
Ownership of securities issued by, 19, 20, 26
Rates on securities, 24
Stock market, selected statistics, 25
Stocks (See also Securities)
New issues, 34
Prices, 25
Student Loan Marketing Association, 33
TAX receipts, federal, 29
Thrift institutions, 3 (See also Credit unions, Mutual
savings banks, and Savings and loan associations)
Time and savings deposits, 3, 8, 13, 17, 18, 19, 20, 21
Trade, foreign, 54
Treasury cash, Treasury currency, 4
Treasury deposits, 4, 10, 28
Treasury operating balance, 28
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 18, 19, 20
Treasury deposits at Reserve Banks, 4, 10, 28
U.S. government securities
Bank holdings, 18-20, 21, 30
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 4, 10, 11, 30
Foreign and international holdings and transactions, 10,
30, 66
Open market transactions, 9
Outstanding, by type and holder, 26, 30
Rates, 24
U.S. international transactions, 53-67
Utilities, production, 48
VETERANS Administration, 38, 39
WEEKLY reporting banks, 19-21
Wholesale (producer) prices, 44, 50
YIELDS (See Interest rates)
89
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK, Chairman
branch, or facility
Zip
Deputy Chairman
President
First Vice President
BOSTON*
02106
Joseph A. Baute
George N. Hatsopoulos
Frank E. Morris
Robert W. Eisenmenger
NEW YORK*
10045
John R. Opel
Virginia A. Dwyer
Mary Ann Lambertsen
E. Gerald Corrigan
Thomas M. Timlen
Buffalo
14240
John T. Keane
PHILADELPHIA
19105
Nevius M. Curtis
George E. Bartol III
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101
Charles W. Parry
E. Mandell de Windt
Owen B. Butler
James E. Haas
Vacancy
William H. Hendricks
Leroy T. Canoles, Jr.
Robert A. Georgine
Gloria L. Johnson
Wallace J. Jorgenson
Robert P. Black
Jimmie R. Monhollon
Bradley Currey, Jr.
Larry L. Prince
Margaret E. M. Tolbert
Andrew A. Robinson
Robert D. Apelgren
C. Warren Neel
Caroline K. Theus
Robert P. Forrestal
Jack Guynn
Robert J. Day
Marcus Alexis
Robert E. Brewer
Silas Keehn
Daniel M. Doyle
W.L. Hadley Griffin
Robert L. Virgil, Jr.
James R. Rodgers
Raymond M. Burse
Katherine H. Smythe
Thomas C. Melzer
Joseph P. Garbarini
John B. Davis, Jr.
Michael W. Wright
Warren H. Ross
Gary H. Stern
Thomas E. Gainor
Irvine O. Hockaday, Jr.
Robert G. Lueder
James E. Nielson
Patience S. Latting
Kenneth L. Morrison
Roger Guflfey
Henry R. Czerwinski
Bobby R. Inman
Hugh G. Robinson
Mary Carmen Saucedo
Walter M. Mischer, Jr.
Robert F. McDermott
Robert H. Boykin
William H. Wallace
Fred W. Andrew
Robert F. Erburu
Richard C. Seaver
Paul E. Bragdon
Don M. Wheeler
John W. Ellis
Robert T. Parry
Carl E. Powell
Cincinnati
Pittsburgh
45201
15230
RICHMOND*
23219
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30303
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75222
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Vice President
in charge of branch
Charles A. Cerino
Harold J. Swart
Robert D. McTeer, Jr.
Albert D. Tinkelenberg
John G. Stoides
Delmar Harrison
Fred R. HenJames D. Hawkins
Patrick K. Barron
Jeffrey J. Wells
Henry H. Bourgaux
Roby L. Sloan
John F. Breen
James E. Conrad
Paul I. Black, Jr.
Robert F. McNellis
Enis Alldredge, Jr.
William G. Evans
Robert D. Hamilton
Tony J. Salvaggio
Sammie C. Clay
J. Z. Rowe
Thomas H. Robertson
Thomas C. Warren
Angelo S. Carella
E. Ronald Liggett
Gerald R. Kelly
*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016;
Jericho, N e w York 11753; Utica at Oriskany, N e w York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
90
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
Helena
J
Minneapolis^
@
Fra- ~ I
I5'"Uk'City
Omaha'
tieHi •
(U
Kansas
City
lOklahoma City.
Dallas®
, Houston
San Antonio
April 1984
ALASKA
©
ii
it
i
i
ii
i
7 / p
m
'
LEGEND
Boundaries of Federal Reserve Districts
®
Federal Reserve Bank Cities
Boundaries of Federal Reserve Branch
Territories
•
Federal Reserve Branch Cities
Federal Reserve Bank Facility
Q
Board of Governors of the Federal Reserve
System
. ••
@FedFRASER