Full text of Federal Reserve Bulletin : January 1984
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VOLUME 7 0 •
NUMBER 1 •
JANUARY 1984
FEDERAL RESERVE
BULLETIN
Board of Governors of the Federal Reserve System
Washington, D.C.
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • Stephen H. Axilrod • Michael Bradfield • S. David Frost
Griffith L. Garwood • James L. Kichline • Edwin M. Truman
Naomi P. Salus,
Coordinator
The FEDERAL RESERVE B"LLETIN 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 Unit headed by Mendelle T. Berenson,
the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Helen L. Hulen.
Table of Contents
L A FINANCIAL
AGRICULTURE
PERSPECTIVE
ON
For more than a decade, the financial experience of the agricultural sector has been
dominated first by the advent, and then by
the aftereffects, of a farm boom of major
proportions.
14
STAFF
STUDIES
"The Effects of Fiscal Policy on the U.S.
Economy" analyzes the short- and intermediate-run effects of a permanent, bond-financed reduction in U.S. personal income
taxes on interest rates, output, prices, exchange rates, and the current account.
16 INDUSTRIAL
PRODUCTION
Output rose about 0.5 percent in December
1983.
19
ANNOUNCEMENTS
Issuance of statement regarding applications by three bank holding companies to
acquire state-chartered banks in South Dakota.
Revision of Regulation Y.
Amendments to Regulation O.
Amendments to Regulation Q.
Revision of Regulation X.
Changes in statistical releases on the money
stock and reserves data.
Proposal to implement part of the International Lending Supervision Act of 1983.
Admission of seven state banks to membership in the Federal Reserve System.
23 RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET
COMMITTEE
At the conclusion of its meeting on November 14-15, 1983, the Committee decided
that no change should be made at this time
in the degree of restraint on reserve positions. The members anticipated that such a
policy would continue to be associated with
growth of both M2 and M3 at an annual rate
of around 8V2 percent for the period from
September to December. The members also
agreed that the need for greater or lesser
restraint on reserve conditions should be
evaluated against the background of developments relating to the strength of the economic recovery, the outlook for inflation,
and conditions in domestic and international financial markets. Depending upon such
developments over the weeks ahead, greater restraint would be acceptable in the
event of more rapid growth in the broader
monetary aggregates, while lesser restraint
would be acceptable in the context of a
significant shortfall in such growth. The
Committee anticipated that, given the relatively slow growth of Ml in October, its
expansion at an annual rate of around 5 to 6
percent from September to December
would be consistent with the fourth-quarter
objectives for the broader aggregates, and
that expansion in total domestic nonfinancial debt would remain within the range of
m to 1V/2 percent established for the year.
It was agreed that the intermeeting range
for the federal funds rate, which provides a
mechanism for initiating consultation of the
Committee, would remain at 6 to 10 percent.
29 LEGAL
DEVELOPMENTS
A 6 8 BOARD
Amendments to Regulations C, D, K, 0 ,
and Q; revisions to Regulation X; amendments to Rules Regarding Delegation of
Authority; various bank holding company
and bank merger orders; and pending cases.
A I FINANCIAL
AND BUSINESS
STATISTICS
A3 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A52 International Statistics
A 6 7 GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND
SPECIAL
TABLES
OF GOVERNORS
A 7 0 FEDERAL OPEN MARKET
AND STAFF; ADVISORY
All
FEDERAL RESERVE
PUBLICATIONS
A 7 5 INDEX
A 7 8 MAP OF FEDERAL
STAFF
COMMITTEE
COUNCILS
BOARD
TO STATISTICAL
A 7 7 FEDERAL RESERVE
AND OFFICES
AND
TABLES
BANKS,
RESERVE
BRANCHES,
SYSTEM
A Financial Perspective on Agriculture
Emanuel Melichar, of the Board's Division of
Research and Statistics, prepared this article.
For more than a decade, the financial experience
of the agricultural sector has been dominated
first by the advent, and then by the aftereffects,
of a farm boom of major proportions. Such
episodes have been relatively rare—two earlier
in this century, during and immediately after the
World Wars, and two in the nineteenth century,
also triggered by the commodity demands of
U.S. and European wars. But the effects of each
boom extended over several decades, shaping
the fortunes of an entire generation of farmers
and their landlords, lenders, and suppliers. In
each case, the vast majority of farmers were
lifted by an initial wave of unanticipated prosperity. After the booms, however, their experience
varied according to how dependent they had
become on continued high commodity prices,
and thus how financially vulnerable they were as
prices and incomes retreated. After each boom
some farmers experienced lasting financial improvement, while others endured prolonged financial stress or went bankrupt.
The current episode has retraced much of this
familiar pattern. When, in 1972 and 1973, huge
increases in the prices of major farm commodities ushered in the boom, virtually all producers
benefited. Many continued to enjoy higher income for much of the decade; for some groups,
however, the prosperity was more fleeting. Livestock prices and profits broke first, in 1974, while
crop prices remained at high levels for two more
years. By then some farmers, particularly in
marginal farming areas, had made investments
whose success depended on continued high
prices; these farmers were plunged into financial
difficulty soon after grain prices declined in 1976.
While such farmers pressed for government assistance, the majority continued to enjoy real
incomes above the pre-boom levels and to bid up
real prices of farmland. Then, in 1978 and 1979,
livestock and crop prices again surged upward,
giving another boost to income and expectations.
The boom ended in 1980, when farm commodity prices failed to advance while prices in general were rising rapidly. During the next two years,
heavy harvests and worldwide economic recession lowered prospects for a rebound in farm
prices and income, and farmland prices in the
major grain and livestock areas fell sharply. At
the same time, farmers with short-term debt or
variable-rate loans were hit by a large increase in
interest rates. These developments swelled the
number of farmers in serious financial difficulty.
Although public attention naturally has focused on farmers in financial distress, such cases
have not represented the norm of farm conditions. On balance, real profits from farm assets
and real farm wealth have remained well above
pre-boom levels. The first part of this article
discusses this experience and its implications for
farm policy.
These observations on overall farm financial
conditions, however, mask highly diverse experiences among various groups of farmers. Ever
since interest rates rose far above the average
rate of return to assets, a sizable group of heavily
indebted operators has faced financial stress. In
examining their problem and numbers, the second part of the article finds that, although they
are a minority, these farmers owe much of the
outstanding farm debt.
As heavily indebted farmers began to have
problems meeting loan payments, loan losses at
rural banks increased. On balance, however,
such losses were absorbed without strain because these banks had built up their profit and
capital positions during the farm boom. The
article concludes with a look at the experience
and condition of rural banks.
2
Federal Reserve Bulletin • January 1984
PROFITABILITY
OF
AGRICULTURE
The last post-boom decline in farm earnings
bottomed out in the mid-1950s. For the rest of
that decade and throughout the 1960s, real income from farm assets grew fairly steadily. Income growth in turn produced rising real land
prices and favorable experience with debt financing. These developments shaped attitudes that
affected the way farmers responded to the income boom of the 1970s.
Income from
Assets
Income from assets, an estimate of the profits
attributable to the ownership and control of farm
1.
assets, is derived as indicated in table 1. It is
income after operating expenses, depreciation,
and imputed charges for the value of the labor
and management performed by farm operators,
but before interest payments by those operators
and landlords who are in debt. Such income
underlies the value of farm assets, especially the
value of farmland.
The trends in farm income of the past 30 years
are shown in chart 1, adjusted for general price
inflation and presented in 1983 dollars so that
historical data can be more readily related to
current values. Three aspects of the record of
income from assets stand out: the significant
uptrend before 1972, the huge rise in the 1970s,
and the wide margin of the current level over preboom levels.
Farm income, returns, assets, and debts of operators and landlords, selected years, 1953-83 1
Billions of 1983 dollars
Item
1953
1958
1963
1968
1973
1978
111
9
43
10
115
9
50
11
118
10
56
12
124
10
61
13
192
10
81
15
171
12
84
21
149
12
74
19
48
46
41
40
85
54
45
36
4
8
27
4
15
23
4
13
26
5
10
23
7
55
21
7
27
19
6
21
PLUS: Real capital gain on assets 3
EQUALS: Total return from assets
-23
-14
33
47
9
22
0
10
88
143
90
117
4
24
LESS: Interest paid
PLUS: Real capital gain on debt 3
EQUALS: Total return from equity
2
1
-16
3
1
45
5
1
19
7
5
8
9
10
143
14
13
116
21
8
12
455
49
406
480
57
423
547
82
464
635
112
522
715
126
589
979
171
808
966
207
759
Derivation of net income and total returns
Gross income (including net CCC loans)
LESS: Wages and perquisites paid to hired labor
LESS: Other operating expenses, excluding interest
LESS: Depreciation allowances and accidental damage
EQUALS: Income from assets and operators' labor and
management
2
LESS: Income imputed to operators' labor
LESS: Income imputed to operators' management work
EQUALS: Income from assets
Balance sheet, January 1
Assets
LESS: Debt (including CCC loans)
EQUALS: E q u i t y
1. Data are for the farm sector excluding farm households
(operators' dwellings, household equipment and furnishings,
and all financial assets except currency, bank demand deposits, and stock in farmers' cooperatives). Except as noted
below, data shown are series published by the U.S. Department of Agriculture (USDA), adjusted for general price
inflation by the implicit price deflator for personal consumption expenditures (estimated 1983 average = 1.00). Data for
1983 are estimates based on forecast ranges published by
USDA in late 1983.
2. Because published USDA data for income imputed to
operators' labor appear to have substantially understated the
value of farm labor performed by operators and unpaid family
workers, data shown are an interim series estimated by the
author. The annual percentages of total farm work performed
by operators and unpaid family workers and by hired labor
respectively were estimated from available data from USDA
and the Bureau of Labor Statistics on employment and manhours. The ratio of the operator percentage to the hired labor
1983
percentage was then multiplied by the USDA estimate of
wages and perquisites paid to hired labor. For recent years,
estimates for imputed labor obtained in this way are considerably above those of the USDA. Consequently, income from
assets and total returns from assets and equity derived using
the interim labor series are correspondingly lower than
present USDA estimates of these series.
3. Real capital gain (loss) on farm assets is the amount by
which the annual increase in total market value of assets is
greater (less) than the sum of net investment and of the
change in general purchasing power of the total funds tied up
in these assets. Real capital gain (loss) on debt is the decrease
(increase) in general purchasing power of the funds owed.
Changes in general purchasing power are measured by the
implicit price deflator for personal consumption expenditures. The estimates shown thus differ from those of the
USDA, which uses the consumer price index in this computation and has published these data only in current dollars.
A Financial Perspective
Pricing of Farm
1. Farm income
Percent
1955
1960
1965
1970
1975
1980
Profit margin is net income from assets as a percentage of gross
income. Income series are defined in table 1.
Except for the rise of the 1970s, these aspects
of farm profits are not widely recognized because
attention has focused on a measure of income
that includes the labor and management earnings
of operators and is net of interest payments. That
mixture, in effect, of wages, salaries, and income
to equity has often given misleading signals
about the profitability of farming. In the 1960s,
such income was stagnant, as reduced labor
requirements offset an upward trend in income
from assets. In the 1980s, such income has
declined below pre-boom levels as interest
charges have risen sharply; meanwhile, income
from assets has remained above pre-boom levels.
Clearly, if real income from assets has been
positive and above pre-boom levels, then most of
the farmers who are in financial distress are
those with debt-service requirements that exceed
such income. A detailed look at the problem and
numbers of indebted operators follows a discussion of aggregate farm profitability and incomeasset relationships.
on Agriculture
3
Assets
As is true for any income-producing asset, bidding by participants in the market for land sets its
price and hence implicitly its rate of return. In
the market for farmland, the buyers and sellers
are mainly farmers and local landlords—the latter mostly retired farmers, farm widows, and
nonfarmer heirs. Active farmers dominate the
buyer group. Thus the rate of return to farm
assets is set by farmers themselves in the farmland market.
Farmers consider many factors when participating in the determination of land values, among
them the income and risks of farm and alternative
investments. Through their collective appraisal
of these factors, they establish land prices consistent with their required rate of return on farm
assets.
Asset values are thus established at some
multiple of current income from assets. What
that multiple will be depends both on the required rate of return and on the expected growth,
if any, in income.
If income is not expected to change, asset
values are established at the level at which the
current income fully satisfies the required rate of
return. If, for example, the required rate of
return is 5 percent, then assets will be priced at a
multiple of 20 times their current income, and the
rate of return in the form of income thus also will
be 5 percent.
Income may change, however, regardless of
expectations. If participants in asset markets
collectively believe that the change will last, then
asset values respond by changing in proportion
to the change in income. For instance, if income
from assets rises 10 percent, then asset values
also rise 10 percent. In the example used above,
this rise in asset values restores the multiple of 20
times current income, to continue to provide the
required return of 5 percent.
When increases in income recur regularly, or
participants in asset markets have other reasons
to expect growth in income, asset pricing takes
account of the capital gains that, as seen above,
result from such income growth. The expected
annual capital gains substitute for income in
satisfying the required rate of return. For example, if the required rate of return is still 5 percent,
4
Federal Reserve Bulletin • January 1984
2. Farm assets and income from assets
Ratio scale,
billions of 1983 dollars
i•
i i i•
-
_
Ratio scale,
billions of 1983 dollars
i i i M 'HMMBIBHHHRMHHHi
• ' •••
'
Percent
Rate of income return to assets
and hence of the rate of income return. Changes
in expectations of income growth or in the required rate of return do cause large changes in
asset values.
Over the past three decades, farm asset values
have reflected income developments in accordance with these principles. Asset values, dominated by changes in land prices, have tended to
follow trends in income from assets (chart 2).
With income generally trending upward, expectations of continued income growth apparently
prevailed. Except for the early years of the
boom, when income outran land prices, assets
were priced at an average multiple of about 50
times income from assets, and the rate of income
return thus averaged 2 percent.
Real Capital
Gains—the
1960s
Income and assets are defined in table 1.
but now income from assets is expected to grow
by 3 percent annually, then assets will be priced
at a multiple of 50 times current income, and the
rate of income return will be only 2 percent.
Again, asset values respond proportionately to
any income changes that appear permanent,
whether they are expected or not. Thus if income
increases by 10 percent, then asset values again
also rise by 10 percent, to restore the multiple of
50 times earnings. Or if, contrary to expectations
of growth, income from assets declines, then
asset values also fall in proportion.
Such deviations from expectations, or other
developments, may cause market participants to
reassess prospects for income. As they alter their
collective expectations, asset values may change
significantly. If, for example, expected growth in
income falls from 3 percent to zero while the
required rate of return stays at 5 percent, then
asset values will fall from a multiple of 50 times
current income to one of only 20 times current
income. In addition, asset values change when
the required rate of return changes.
To summarize, asset values respond proportionately to changes in current income from
assets, other factors remaining unchanged. Expectations of income growth do not in themselves change asset values, but enter importantly
into determination of the price-earnings multiple
From the mid-1950s through the 1960s, real income from assets rose by about 3 percent annually. Consequently, significant real capital gains
accrued to owners of farm real estate during most
years of that period (chart 3). These increases in
the real value of farm real estate (excluding
operators' dwellings), measured as gains in excess of those resulting simply from net investment and general price inflation, totaled $145
billion (in 1983 dollars) over this period, an
average of nearly $10 billion per year.
During the same period, the rate of income
return to farm assets averaged 2 percent. Taken
3. Real capital gains on farm real estate
Billions of 1983 dollars
1
1
1
.11.1,
•
l . l l l l l .
1-
II
.
I I
1
' 1955' ' 'i960' ' '1965* ' '1970* ' '1975* ' '1980* '
Real capital gain is defined in table 1.
1
10
°
A Financial Perspective
4. Rates of return to farm assets
Percent
t m i t i m t i t m i t ! mi i i i m i i i w t i
1955
1960
1965
1970
1975
1980
Returns and assets are defined in table 1. Total return is the sum of
income from assets and real capital gains on assets.
together, income and real capital gains on all
assets provided a total rate of return averaging 4
percent (chart 4).
Government programs contributed importantly to the growth of real income from assets in
these years. Technological advances were reducing labor and other operating costs per unit of
output as well as raising total output per unit of
assets. Farm output prices would thus have
tended to fall, but government price support
programs prevented such declines. Therefore,
real income from assets tended to rise, and with
it total real farm wealth.
Toward the end of the decade, these effects
began posing a dilemma for farm policy. As real
income from assets rose, ever-larger increments
were required to maintain the growth rate prevailing at that time. But, from the viewpoint of
consumers and taxpayers who provided those
increments, the rising real wealth of the recipients reduced the need for governmental assistance. Yet, without that income growth, a significant share of that wealth might well disappear.
As the 1970s opened, rising concern about the
cost of farm programs foreshadowed struggles
over farm policy—when suddenly a boom in
farm exports changed the whole picture.
Gains—the
Losses—the
1980s
1970s
The export boom that developed in the early
1970s yielded an enormous increase in farm
earnings. The unexpected decision by the Soviet
5
Union to purchase large quantities of U.S. grain
after one of its periodic droughts depleted domestic stocks and moved prices upward. Meanwhile, domestic demand for grain remained high
as livestock production approached a cyclical
peak. Later, the U.S. drought of 1974 and rising
/real incomes in food-deficit nations also worked
to raise crop prices and generate export demand.
For farmers contemplating land purchases and
other capital expansion, the income gains posed
a familiar question: Was this a temporary boom,
in which case debt-financed capital purchases
would be regretted, or was it a lasting phenomenon, promising fortunes for those who seized the
opportunity? The answer seemed obvious in the
light of two decades of rising real farm income
and wealth, successful employment of financial
leverage through debt financing, and greater public concern about future scarcity of natural resources. It appeared that agriculture throughout
the world had entered a new era, in which it
would become progressively harder for the supply of food to meet expanding demand, so that
American farmers would enjoy steadily rising
exports and income.
Farm asset values responded to the new income levels and the strong expectations of continued income gains. From 1972 through 1979,
real capital gains on farm real estate (excluding
operators' dwellings) totaled $447 billion (in 1983
dollars), an annual average of $56 billion. Chart 3
shows how these gains dwarfed those of the
preceding decades; and chart 4 shows that in
most of these years, they also exceeded even the
new higher income from assets, yielding some
total rates of return in double digits. But the
increases in asset values also were large enough
to restore the earlier rate of income return, 2
percent. Thus, by the late 1970s, farmers had
capitalized the new level of income from assets
at a multiple that appeared to reflect expectations that income would tend to rise further.
Real Capital
Real Capital
on Agriculture
Instead of rising, income fell at the start of the
new decade, and, just as important, prospects for
near-term income growth dimmed. Even the
longer-term prospects based on progressive re-
6
Federal Reserve Bulletin • January 1984
source scarcity were increasingly challenged and
downgraded. Government assistance now could
replace only a portion of the income that was not
forthcoming from commodity markets. Inevitably, real asset values began to decline.
Real capital losses on farm real estate have
totaled about $149 billion (in 1983 dollars) in the
first four years of the eighties, mostly in 1981 and
1982 (chart 3). The decline in real farmland prices
was halted when near-term income prospects
improved with announcement of the payment-inkind program.
Even though asset values have declined, much
of the legacy of the boom remains. About $300
billion of the newly created wealth still exists,
along with many billions of new debt incurred as
assets were transferred at higher prices. As recent experience has vividly demonstrated, the
amount of that wealth that remains in existence
will depend on the extent to which the required
rate of return is forthcoming. The debt, however,
will require payment of scheduled interest and
amortization, almost regardless of trends in asset
values or income. The assets still appear to be
priced at a multiple that demands significant
growth in income.
The situation resembles that at the end of the
1960s, although it differs in some ways. Even
after adjustment for inflation, the dollar amounts
involved are much larger, and thus government
assistance would have to be proportionately larger to have the same impact. Government aid at
the greatly increased 1983 level proved able to
stem the slide in asset values, but continued
assistance on that scale appears unlikely. The
greater farm wealth adds to doubts about the
propriety and equity of increasing aid. Moreover, there is now considerable pressure to restrain total growth in government spending. Thus
more of the post-boom adjustment remains to be
worked out in the commodity and land markets.
INDEBTED
FARMERS
During the 1920s and the early years of the Great
Depression, farmers relearned the lesson that
their forebears had absorbed in earlier "panics:"
to be deeply indebted after the collapse of a
boom has dire, often fatal, consequences. Out-
standing farm debt peaked in 1921. During the
hard times that followed, debt steadily fell—
mainly through foreclosures and bankruptcies—
but not nearly so fast as asset values. The ratio of
debt to assets peaked at 30 percent in 1933. By
then, attitudes toward debt were such that, as
farm prices and incomes improved, farmers repaid rather than increased debt. Debt reduction
continued through the boom in farm income of
World War II. The amount of farm debt outstanding bottomed in 1946, and the ratio of debt
to assets hit a low of 8 percent in 1948.
As the wartime boom in farm income was
extended, first by the Marshall Plan and then by
the Korean War, farmers gradually began to
expand their debt. Nonetheless, in the 1950s, the
level of farm debt was still low enough to help
minimize the financial distress from hardships
and transitions that included severe drought,
declines in crop and livestock prices, and reductions in total crop acreage from its wartime level.
Debt
Expansion
Attitudes toward debt formed in the 1920s
proved too conservative for the new era of
income growth and capital gains that unfolded
after the mid-1950s. Farmers willing to borrow
more freely made faster financial progress, and
this new lesson was soon learned by both farmers and farm lenders. The leading college textbook on farm finance, which through four editions had cautioned on its first page that credit
could be as dangerous as a buzz saw and that
"many a farmer would be better off today if he
had never had a chance to borrow money at all,"
first abbreviated and then dropped such warnings. Growth in debt was relatively rapid (chart
5). By the beginning of 1972, the ratio of debt to
assets had climbed back to 18 percent.
With the onset of the boom, rapid expansion of
debt continued, but it was now accompanied by
more rapid increases in asset values. Thus, although the ratio of debt to assets did not increase, a large increment of debt was taken on.
By 1980, real asset values had risen by 73 percent, or $480 billion (in 1983 dollars), while real
debt had risen by 61 percent, or $74 billion. If
these additional asset values had continued to
A Financial Perspective
5. Farm assets and debt
Ratio scale,
billions of 1983 dollars
Ratio scale,
billions of 1983 dollars
100
400
180
i •
^
i i i a i i i M M i a n i a i i i a i i
c
1955
1960
e
1965
n
1970
45
t
1975
1980
Assets and debt are defined in table 1.
yield returns sufficient to service the additional
debt, all would have been well because the two
had risen in proportion. But any reduction in the
income flow would mean a problem for debtors,
who still had to meet scheduled interest and
repayments on the additional debt. Such a reduction occurred in 1980.
Higher Interest
Rates
Another misfortune hit many farm borrowers in
1980. Interest rates rose to levels that they could
not have anticipated. Furthermore, rates remained very high until late 1982 and are still, for
most farm borrowers, significantly above pre1980 levels.
The borrowers most surprised by these interest rate developments were those using shortterm loans from rural banks, because, before
1979, these borrowers had been virtually insulated from cyclical changes in loan rates. Chart 6
illustrates the marked change in their experience.
Before 1979, fixed ceilings on interest rates applied to all deposit instruments that rural banks
could readily market to their predominantly local
depositors. Thus the cost of loanable funds at
these banks changed little even as the level of
on Agriculture
7
interest rates rose and fell sharply in national
money markets during periods such as 1969-70
and 1973-74. Rates charged on farm loans by
these banks were also relatively unchanged during these periods, as chart 6 demonstrates, and
so clearly these rates reflected the banks' internal cost of funds plus a mark-up, rather than the
potential earnings of these funds if invested in
national money markets.
Rural banks probably continued to set their
farm loan rates in this manner, but their internal
cost of funds began to reflect cyclical movements
in money market rates. This change occurred
after 1978, when banks—with the authorization
of six-month money market certificates—were
allowed to accept smaller and shorter-term deposits bearing market-related rates, and competitive factors induced them to do so. As market
rates of interest rose during 1979-81, rural depositors shifted a large proportion of their deposits into the new certificates. By mid-1981, these
certificates constituted about 30 percent of the
total resources of the typical rural bank. In
addition, large certificates of deposit, also bearing money market rates, accounted for 7 percent
of total resources. Banks also were paying market-related rates on small-saver certificates with
a permitted maturity of 30 to 48 months. Thus, as
a large proportion of the liabilities of rural banks
quickly came to bear market-related yields, farm
and other loan rates at these banks necessarily
began to track market rates. While those farmers
who typically borrowed from large banks and
6. Average interest rates on farm loans at
rural banks compared with prime rate
Percent
Quarterly data, first day of quarter.
8
2.
Federal Reserve Bulletin • January 1984
Farm cash flow, selected years, 1953-83'
Billions of 1983 dollars
Item
1953
1958
1963
1968
1973
1978
1983
111
9
43
59
115
9
50
56
118
10
56
52
124
10
61
54
192
10
81
100
171
12
84
75
149
12
74
64
LESS: Interest paid
EQUALS: Cash flow after interest payments
2
56
3
53
5
7
48
47
9
91
14
61
21
44
PLUS: Net borrowing (excluding CCC loans)
EQUALS: Funds available for investment, consumption, and saving..
-1
55
6
59
8
56
4
51
18
109
23
83
4
47
Derivation of cash flow
Gross income (including net CCC loans)
LESS: Wages and perquisites paid to hired labor
LESS: Other operating expenses, excluding interest
EQUALS: Cash flow before interest payments
1. See table 1, note 1.
from production credit associations (PCAs) were
accustomed to such cyclical movements in their
loan rates, those movements were a new experience for borrowers from smaller rural banks.
Higher interest rates affected individual farmers in different ways. Those with little or no debt
were largely unaffected, as were those whose
debt consisted mainly of term loans at fixed
rates. The large number with mortgage loans
from federal land banks experienced a gradual
and relatively moderate increase in their variable
rates. Those borrowing from PCAs, also with
variable-rate loans, faced quicker and larger increases. Rates for borrowers from rural banks
rose and fell with about the same lag as those at
PCAs, but reached a higher average level—about
19 percent—at the 1981 peak. Most severely
affected were borrowers from large banks, at
which the average rate on farm loans reached 21
percent in mid-1981.
The differential impact of higher interest rates
is apparent in comparisons of real cash flow
before and after payment of interest (table 2 and
chart 7). Real cash flow before interest payments
depicts the experience of farmers with little or no
debt. Although it has declined significantly from
7. Farm cash flow
Ratio scale, billions of 1983 dollars
Cash flow is defined in table 2.
its boom peaks, it remains well above its preboom level. But real cash flow after interest
payments has fallen to levels well below those
before the boom. This series illustrates the cashflow experience of farmers whose relative
amount and cost of debt were close to the sector
averages—in 1983, a debt-asset ratio of 21 percent and an interest rate of 10.3 percent. Farmers
more heavily indebted or paying a higher average
interest rate have fared correspondingly worse,
unless they are among those earning an exceptionally high rate of return on their assets.
Current Impact
of Debt on
Profits
Table 3 illustrates the joint impact of the level of
debt and the rate of interest on a farmer's income
return to equity. The calculations assume a farm
with the recent average rate of income return to
assets for the farm sector, 2 percent. As shown,
this was also the rate of return to equity if the
farmer had no debt. If, however, he had debt
equal to 20 percent of assets and paid an average
interest rate of 11 percent—both near the sector
averages—then his return to equity was near
zero. Higher ratios of debt to assets meant
losses: moderate if debt consisted mainly of old
fixed-rate mortgage loans at an interest rate like 7
percent, more severe if it consisted of short-term
loans at a rate like 15 percent.
The table indicates that highly leveraged operators may have had operating losses equal to a
fourth or a third of their equity in each of the past
four years while similarly situated farmers with
no debt were operating profitably. Unless such
heavily indebted farmers had substantial financial reserves or other resources, they have had to
A Financial Perspective
3.
Rate of income return to equity, by relative level
and cost of debt 1
Percent
Ratio of debt to assets
(percent)
Interest rate on outstanding debt
(percent)
7
0
10
20
30
40
50
60
70
80
90
2.0
1.4
.8
-.1
-1.3
-3.0
-5.5
-9.7
-18.0
-43.0
15
11
2.0
1.0
-.2
-1.9
-4.0
-7.0
-11.5
-19.0
-34.0
-7Q
n
2.0
.6
-1.2
-3.6
-6.7
-11.0
-17.5
-28.3
-50.0
-115.0
1. This table assumes a farm on which the rate of income return to
assets is 2 percent, approximately the average for the farm sector in
1980-83. To illustrate the calculations reported here: if the farm also
had the average ratio of debt to assets for the farm sector, 20 percent,
and the average interest rate, 11 percent, its rate of income return to
equity was - 0 . 2 percent.
liquidate assets in order to reduce their debt
burden. In each recent year, according to surveys of lenders, perhaps 3 to 5 percent of farmers
have been forced to liquidate productive assets.
Smaller percentages were reported to have left
farming through forced liquidations or foreclosures.
on Agriculture
9
tors reported that their primary occupation was
farming, and of those, nearly half were over 65
years old. In the group of large and mediumsized farms that includes most full-time family
operations, one-third have debt-asset ratios that
suggest financial stress. At the same time, nearly
one-third of the farmers in this group have little
or no debt.
For farm lenders, however, the amount of debt
owed by farmers experiencing financial stress is
the important statistic. From this point of view,
the picture is more disturbing. Nearly two-thirds
of the total debt is owed by operators with debtasset ratios greater than 40 percent (table 4).
Thus lenders see much of their money in the
hands of operators who are in financial trouble.
4.
Estimated percentage distribution of farm
operators and their debt and assets, by relative
debt level and size, January 1, 1984'
Ratio of farm operator debt to assets
(percent)
Size of farm
2
0-10
11-40
58
21
34
55
73
24
36
35
26
16
41-70
71 and
over
Total
Operators
Extent of Financial
Problems
Because the incidence of severe financial problems among farmers depends largely on relative
indebtedness, the distribution of operators and
their debt by the ratio of debt to assets helps to
indicate how many operators are in financial
difficulty and how much of total farm debt such
farmers owe. These data were provided by the
1979 Farm Finance Survey, conducted by the
Bureau of the Census early in 1980. Table 4
shows estimates based on the survey data, but
adjusted and updated to indicate current distributions.
If, from the discussion above, it can be concluded that operators with a debt-asset ratio
greater than 40 percent are experiencing financial
stress, then about one-fifth of all farmers are in
this predicament (table 4). This overall proportion is misleading, however, in that few of the 1.2
million operators of "very small" farms (who
account for 50 percent of all operators) have
much debt. Less than one-third of these opera-
All farms
Large
Medium...
Small
Very small
11
25
18
11
7
8
19
13
8
4
100
100
100
100
100
31
38
29
26
23
100
100
100
100
100
8
14
8
4
3
100
100
100
100
100
Debt
All farms
Large
Medium
Small
Very small
5
3
5
8
8
32
27
34
37
38
32
33
32
29
31
All farms
Large
Medium...
Small
Very small
47
27
38
61
74
32
38
38
26
18
14
22
16
8
6
Assets
1. Estimates shown are based on data from Bureau of the Census,
1979 Farm Finance Survey, as tabulated by U.S. Department of
Agriculture, Economic Research Service, and adjusted and updated
by the author. Comparison of assets and debt reported by operators in
the survey with estimates of these items made by U S D A and the
author indicated that total assets had been underreported by 18
percent, and total debt by 31 percent. For 1980-83, estimates made by
U S D A and the author indicated that the value of assets covered by the
survey had increased 9 percent, and the amount of debt 28 percent.
These adjustments therefore raised debt-asset ratios above those
found in the original survey.
2. Farms are classified by size according to the typical annual value
of farm products sold, as follows: large, $200,000 and over; medium,
$40,000 to $199,999; small, $10,000 to $39,999; and very small, under
$10,000.
10 Federal Reserve Bulletin • January 1984
One summary finding from the adjusted survey
data suggests the nature of farm credit difficulties: 83 percent of total debt owed by operators is
owed by the 29 percent of operators with debtasset ratios that exceed the average for all operators (23.3 percent). Thus the bulk of farm debt is
owed by a sizable minority of operators whose
relative debt is large enough that, at current
interest rates, scheduled debt service may easily
exceed income from assets. Until the current gap
between the average rate of return to assets and
farm loan interest rates is significantly narrowed,
these borrowers and their lenders will continue
to face debt-service problems.
EXPERIENCE
OF RURAL
BANKS
The financial problems faced by the heavily
indebted operators who owe much of farm debt
have fostered questions about the condition of
rural banks with a concentration in farm lending.
Such concerns may be grounded in part on
experience after earlier farm booms in which
credit played a prominent role. During the 1920s,
for example, many farmers were unable to service bank loans they had obtained to finance
capital spending during and immediately after
World War I, when increased export demands
had stimulated production. About 6,000 banks
(about one-fifth of all banks) failed during that
decade, most of them in rural areas.
Conditions at rural banks have been much
different in this post-boom period. In particular,
federal deposit insurance has virtually eliminated
the runs on banks that once would have threatened their survival soon after loan-loss problems
surfaced. Also, most rural banks prospered along
with their farm customers, substantially improving their profit and capital positions. Lately,
however, loan losses have risen noticeably.
To examine the experience and condition of
banks with relatively heavy involvement in farm
lending, data were compiled for "agricultural"
banks, at which total farm loans accounted for 25
percent or more of total outstanding loans. Although the number of such banks has been
decreasing, there are still about 4,300 of them,
accounting for 30 percent of all commercial
banks, and they hold two-thirds of the farm loans
in the banking system even though they hold
only 6 percent of banking resources. For comparison, data were also compiled for other smaller banks (assets under $500 million).
Loan
Losses
During the 1970s, loan losses reported by agricultural banks clearly reflected the favorable credit
experience of most farmers and farm-related
businesses. Provision for loan losses averaged
0.2 percent of outstanding loan volume during
that decade, well below the average at other
smaller banks, at which losses rose substantially
during the business recession of 1974-75 (see
chart 8). Notably, the ratio of loan losses did not
rise as a result either of the problems of livestock
producers that began in 1974, or of those of crop
8. F i n a n c i a l e x p e r i e n c e a t a g r i c u l t u r a l a n d
o t h e r smaller b a n k s
Percent
Data are for banks with total assets under $500 million on December
31. Agricultural banks are banks at which farm loans (loans secured by
farm real estate and other loans to farmers) accounted for 25 percent
or more of total loans outstanding on December 31.
Loan-loss ratio is the annual provision for loan losses as a percentage of total loans outstanding on December 31.
Return to equity is net income after taxes as a percentage of the
average of equity at the beginning and end of the year.
Capital ratio is capital and surplus as a percentage of total assets,
December 31.
A Financial Perspective
9. Farm loans outstanding at
major institutional lenders
t WSm M
1977
J i M l i i M 't ^ M f f BHiiilEil
1979
1981
1983
producers in 1976-77. Many of the troubled farm
loans of this period, which otherwise might have
caused losses for the banks, were refinanced by
the Farmers Home Administration (FmHA) under several credit programs: disaster loans, made
mostly to farmers with crop losses caused by
drought; the Emergency Livestock Credit Act of
1974; and the Economic Emergency Credit Act
of 1978 and its extension, under which the
FmHA lent about $6.6 billion from 1978 to 1981.
Chart 9 illustrates the relatively large increases in
FmHA lending during these years.
5.
on Agriculture
11
The loan-loss picture at agricultural banks
changed significantly during 1980-82 as increasing numbers of farm borrowers came under financial stress and farm^related businesses were
hit by the downturn in farm income and by two
general business recessions. By 1981, the provision for loan losses had doubled from its earlier
low level, and in 1982 it rose further, to 0.8
percent of outstanding loans, putting it slightly
above that at other smaller banks.
As in previous years, the distribution of agricultural banks by loan losses was highly skewed:
the average loss ratio was raised because heavy
losses occurred at some banks while a majority
reported relatively small losses. In 1982, onefourth of agricultural banks required little or no
provision for losses—less than 0.1 percent of
outstanding loan volume (table 5). At the other
extreme, 5 percent of the banks had to provide
for losses greater than 2.5 percent of outstanding
loans, the level at which losses would begin to
exceed net income before losses at a typical
agricultural bank. In contrast, in no year of the
1970s did more than 1 percent of agricultural
banks have such heavy losses.
Bank
Profits
The profitabilty of agricultural banks is a summary indicator that quickly reflects the net effect of
loan losses and other factors affecting overall
condition. Over time, bank profitability is impor-
Percentage distribution of agricultural banks, by provision for loan losses, 1970-82'
Provision for loan losses as percentage of loans at bank2
Year
Under
0.10
0.10 to
0.39
0.40 to
0.69
0.70 to
0.99
1.00 to
2.49
1970
1971
1972
1973
1974
1975
1976
49
51
54
52
49
51
45
28
27
27
26
29
29
33
14
13
12
14
14
13
14
5
4
3
4
4
4
4
4
4
4
3
4
3
4
1977
1978
1979
1980
1981
1982
50
43
38
33
31
25
30
35
39
34
29
24
12
12
13
17
19
18
4
4
5
7
7
10
4
5
5
8
11
18
1. Agricultural banks are banks with total assets under $500 million
at which farm loans accounted for 25 percent or more of total loans on
December 31 of the year specified.
2.50 and
over
1
1
T
. 1
1
1
1
100
100
100
100
100
100
100
1
1
1
2
3
5
100
100
100
100
100
100
*
*
2. Annual provision for loan losses as a percentage of total loans
outstanding on December 31.
*Less than 0.5 percent.
12
6.
Federal Reserve Bulletin • January 1984
Percentage distribution of agricultural banks by return to equity, 1970-82"
Net income as percentage of average equity at bank 2
Year
Negative
Oto 4
10 to 14
15 to 19
1970
1971
1972
1973
1974
1975
1976
24
26
28
15
14
43
41
43
39
34
38
41
21
20
18
33
34
30
31
100
100
100
100
100
100
100
1977
1978
1979
1980
1981
1982
16
14
8
9
11
15
45
47
36
31
31
33
27
28
38
36
33
29
100
100
100
100
100
100
12
12
20 to 24
25 and
over
5 to 9
Total
1. Agricultural banks are banks with total assets under $500 million
at which farm loans accounted for 25 percent or more of total loans on
December 31 of the year specified.
2. Net income after taxes as a percentage of the average of equity at
the beginning and end of the year.
*Less than 0.5 percent.
tant because adding to retained earnings is the
major way in which rural banks expand their
capital position and thus maintain or improve
their ability to serve growing communities and
businesses. The average return to equity at agricultural banks rose sharply with farm prosperity
in 1973 and remained at a relatively high level
through 1982 (chart 8). In addition to reflecting
favorable agricultural income, the cyclical pattern traced by profits at agricultural banks indicates that these banks, on balance, benefited
during periods when interest rates were relatively high in national money markets. Their deposits rose steadily even during such periods—for
example, approximately 10 percent in each year
from 1978 to 1982—and the influx of funds evidently was employed profitably. Average return
to equity reached 16 percent in 1974 and again in
1979-80. By 1982, primarily because of increased
provision for greater loan losses, return to equity
had declined to 14 percent.
Even in the face of heavier loan losses, relatively few agricultural banks were operating at a
loss. At such banks, however, extraordinarily
high loan losses were most often the cause of the
operating loss. In 1982, negative earnings were
posted by 3 percent of agricultural banks (table
6). At these banks, the provision made for loan
losses averaged 4.2 percent of outstanding loan
volume. But even during that year of farm and
business recession, 77 percent of agricultural
banks achieved a return of 10 percent or more on
equity. Although down from 91 percent in 1979,
this high a proportion of institutions able to
achieve such profitability during relative adversity attests to the market strength and financial
resilience of these banks.
Capital
Ratios
A considerable portion of the profits of agricultural banks—about two-thirds in 1982—are annually added to bank capital rather than paid out as
dividends to stockholders. From 1974 through
1982, equity grew faster than deposits and assets
on average, and thus the average capital ratio
rose (chart 8). By the end of 1982, capital and
surplus at these banks averaged 8.9 percent of
total assets, up from the cyclical low of 7.4
percent recorded after the large inflow of farmers' deposits in 1972 and 1973.
The growth of capital at individual banks is of
particular importance because it determines how
much a bank can increase, over time, the amount
it can legally and prudently lend to each borrower. During the five years ending in 1982, the
value per farm of assets other than real estate
rose 60 percent, and average outstanding farm
production loans rose 68 percent. Capital at rural
banks kept pace: at banks classified as agricultural banks in 1982, capital and surplus expanded
75 percent over the same period. Thus, on average, increases in the size of loans that agricultural banks can make have approximately matched
increases in the size of loans demanded by
farmers.
Recent changes in bank legislation have further enhanced the lending capability of rural
A Financial Perspective
banks. The upper limit on the amount that a
national bank can lend to one borrower was
raised from 10 to 15 percent of capital and
surplus (a special higher limit of 25 percent
continues to apply if the loans are secured by
livestock). Of more general importance, the increase in federal insurance on individual deposits
to $100,000 had the incidental effect of making
the negotiable certificates of deposit of small
banks salable to national investors, either directly or through intermediaries that ensure that each
investor holds no more than one certificate of
each bank. Furthermore, because most new local
deposits now bear interest related to money
market rates, rural banks no longer find that
funds raised in money markets are more costly
than local deposits, as they did during earlier
on Agriculture
13
periods of relative monetary restraint. Thus the
ability of rural banks to respond to seasonal,
cyclical, or unusual changes in local loan demand
has been improved.
As in the past, the experience of many rural
banks will be related to that of agriculture. The
banks appear well-positioned to cope with nearterm agricultural developments. Their strong
capital and profit positions will help them weather some further deterioration in the financial
situation of their more heavily indebted farm
borrowers. At the same time, their liquidity has
been renewed during four years of steady deposit
growth and slower loan demand. Agricultural
banks now have ample capital and liquidity to
respond vigorously to increased loan demand
during this year's upswing in farm production. •
14
Staff Studies
The staffs of the Board of Governors of the
Federal Reserve System and of the Federal
Reserve Banks undertake studies that cover a
wide range of economic and financial subjects.
From time to time the results of studies that are
of general interest to the professions and to
others are summarized in the FEDERAL RESERVE
BULLETIN.
The analyses and conclusions set forth are
those of the authors and do not necessarily
STUDY
indicate concurrence by the Board of Governors,
by the Federal Reserve Banks, or by the members of their staffs.
Single copies of the full text of each of the
studies or papers summarized in the BULLETIN
are available without charge. The list of Federal
Reserve Board publications at the back of each
BULLETIN includes a separate section entitled
"Staff Studies" that lists the studies that are
currently available.
SUMMARY
THE EFFECTS
OF U.S.
FISCAL
POLICY
ON THE U.S.
Darrel Cohen and Peter B. Clark—Staff,
Board of
ECONOMY
Governors
Prepared as a staff study in late 1983.
Considerable public and professional interest has
focused on the effects of very large, continuing
federal budget deficits in the United States. This
interest, which is worldwide, reflects concern
about the extent to which a large federal deficit—
especially if it persists as the U.S. economy
approaches full employment—raises interest
rates and crowds out expenditures in sectors of
the economy like business fixed investment that
are sensitive to interest rates. Because the United States looms large in the world economy,
U.S. federal budget deficits may have a noticeable impact on other countries through their
effects on interest rates on dollar-denominated
financial instruments, the international exchange
value of the dollar, and U.S. international transactions.
This staff study analyzes this topic by examining in detail the short- and intermediate-run
effects of a permanent, bond-financed reduction
in U.S. personal income taxes on interest rates,
output, prices, exchange rates, and the current
account. Underlying the theoretical analysis are
the assumptions that the growth rate of money is
fixed, that exchange rates are essentially market
determined, and that expectations are either static or adaptive. The effects of an enlargement in
the federal deficit generated by a cut in personal
income taxes are explored under conditions of
full employment and of less than full use of
resources, and under different assumptions
about the interest elasticity of the demand for
money. The theoretical discussion indicates that
in general a personal tax cut will raise interest
rates and, at least initially, cause the exchange
value of the dollar to appreciate. With unemployed resources, output will increase somewhat, but the increase in consumption is at least
partially offset by negative effects on interestsensitive sectors of the domestic economy and
on the traded-goods sector as an appreciation of
the dollar encourages imports and discourages
exports.
These theoretical conclusions are by and large
confirmed by simulations, using the Federal Reserve Board's MPS quarterly econometric model
15
and its Multicountry Model, of the effects of the
10 percent reduction in tax rates on personal
income that became effective as part of the
Economic Recovery and Tax Act in July 1982.
These model results indicate that a tax cut will
raise interest rates and real gross national product. However, the positive impact on GNP is
short-lived. Because of accelerator effects, business fixed investment initially increases despite
the rise in interest rates. Yet after two or three
years, the net effect on business fixed investment
is negative, and because of a deterioration in the
current account and the adverse effect of higher
interest rates on residential investment, the level
of real GNP returns to the path it would have
traced without the reduction in personal taxes.
Thus these model results suggest that even in the
presence of unemployed resources, a personal
tax cut that is not accompanied by a change in
monetary policy will have only a short-run positive effect on real output: the rise in consumption
spending will eventually crowd out an equivalent
amount of interest-sensitive expenditures because of higher interest rates.
16
Industrial Production
industrial output was about 23/» percent higher
than in the third quarter of 1983, compared with
an average quarterly advance of about 4 percent
over the preceding three quarters. Industrial
output for the year 1983 is estimated to be 6V2
percent higher than in 1982.
In market groupings, production of durable
consumer goods rose almost 2 percent in December, as auto assemblies increased to an annual
Released for publication January 13
Industrial production increased an estimated 0.5
percent in December. Significant increases in
output occurred in durable consumer goods,
business and defense equipment, and energy
materials, while most of the remaining major
market groupings showed little change in production in December. For the fourth quarter, total
1967 = 100
1967 = 100
-
~ TOTAL INDEX
^
^
\
170
7%
150
1
1
1
1
130
1
190 T_ MATERIALS
FINAL PRODUCTS
Business equipment
150
Products output
130
1
170
Materials output
Nondurable
f
170
\
150
130
'
/
f
/
/Durable^
/
\j
'
170
p
\
1
1
^
7
Durable
/v
130
1
1
I
90
190
170
Business supplies
150
V \
130
130
Construction supplies
v
110
110
1969-70=100
180
140
1977
Annual rate, millions of units
18
1979
1981
1983
All series are seasonally adjusted and are plotted on a ratio scale.
110
INTERMEDIATE PRODUCTS
150
r\
-
—
MnnHiir^Klo
y
/
—
-
1
170
150
\
J
90
190
CONSUMER GOODS
-
s-^'
Energy
110
190
-
1977
1979
1981
1983
Auto sales and stocks include imports. Latest figures: December.
17
1967 = 100
Percentage change from preceding month
1983
1983
Grouping
Nov.
Dec.
Aug.
Sept.
Oct.
Nov.
Dec.
Percentage
change,
Dec. 1982
to Dec.
1983
Major market groupings
Total industrial production
156.1
156.9
1.4
1.3
.8
.7
.5
16.1
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment
Defense and space
Intermediate products
Construction supplies
Materials
156.9
154.2
157.8
156.7
158.2
164.4
123.9
167.2
152.7
154.9
158.0
155.4
158.7
159.7
158.3
165.8
125.7
167.6
152.7
155.3
1.5
1.1
1.0
.9
1.0
2.2
-.2
2.6
2.2
1.3
1.1
.9
.6
2.1
.1
1.3
1.3
2.0
1.6
1.7
.6
.5
-.1
-.3
-.1
1.8
.9
.7
.6
1.1
.7
.9
.4
-.3
.7
1.8
.8
.4
.3
.6
.7
.8
.6
1.9
.1
.9
1.5
.2
.0
.3
12.9
11.4
11.8
26.8
6.7
12.0
8.5
18.4
24.1
21.5
Manufacturing
Durable
Nondurable
Mining
Utilities
157.2
144.0
176.3
120.9
178.8
157.8
145.0
176.3
123.4
183.4
1.5
1.5
1.3
1.0
1.9
.5
.7
.3
1.9
1.1
.4
.7
.0
2.1
2.6
17.3
20.9
13.3
4.2
11.7
Major industry groupings
1.5
2.0
1.0
.9
.0
.8
1.0
.7
1.3
-1.3
NOTE. Indexes are seasonally adjusted.
rate of 8.0 million units from the 7.5 million rate
in November and home goods output advanced
after having declined in the preceding month.
The December rate for auto assemblies was the
highest since July 1979. A further increase is
currently scheduled for January. Production of
nondurable consumer goods was about unchanged in December. Output of business equipment continued to rise rapidly, with a sizable
gain occurring in building and mining equipment.
Production of construction supplies was unchanged and was less than 1 percent above its
September level. The rate of increase in output
of materials decelerated further in December to
0.3 percent; most of this gain was attributable to
a surge in generation of electricity associated
with the severe weather in the latter half of the
month. Production of durable materials was unchanged, as the output of parts for both consumer durables and equipment rose, but basic metals
declined again.
In industry groupings, manufacturing output
rose 0.4 percent following gains of 0.5 percent
and 0.8 percent in November and October respectively. Durable goods industries increased
production 0.7 percent in December, with the
most notable gains in transportation equipment
and electrical machinery; output of nondurables
was unchanged. Mining production increased
sharply, with oil and gas well drilling a continuing area of strength. Utilities output rose 2.6
percent, as use of residential electricity increased sharply.
19
Announcements
APPLICATIONS
BY
BANK HOLDING
COMPANIES
TO ACQUIRE STATE CHARTERED
BANKS
The Federal Reserve Board issued the following
statement on January 6, 1984, regarding the
applications by Citicorp, First Interstate Bancorp, and BankAmerica Corporation to acquire
state-chartered banks in South Dakota.
At meetings on December 22, 1983, and January 4,
1984, the Board considered certain legal and policy
issues arising from the applications by Citicorp, New
York, New York, First Interstate Bancorp, Los Angeles, California, and BankAmerica Corporation, San
Francisco, California, to acquire existing or de novo
state-chartered banks located in South Dakota. These
applications are designed to take advantage of the
recently enacted provisions of South Dakota law that
permit out-of-state bank holding companies to acquire
banks in that State to engage in insurance activities of
all kinds outside of South Dakota, while limiting the
conduct of those activities within that State.
The Board noted that these applications involve
significiant legal questions concerning the applicability
of the Bank Holding Company Act to state-chartered
banks and/or their subsidiaries that are owned by bank
holding companies, as well as with respect to the
compatability of the proposed insurance activities with
the provisions of Title VI of the Garn-St Germain
Depository Institutions Act of 1982, which restricts
the scope of insurance activities for bank holding
companies.
The Board also noted that specific legislation, which
raises the major policy issue of the extent to which
bank holding companies may engage in insurance
underwriting and brokerage, is now pending before the
Congress and that hearings on this legislation are likely
to resume early in 1984. The Board has supported
legislation submitted by the Administration to authorize insurance underwriting and brokerage for bank
holding companies with appropriate safeguards, and
looks forward to Congressional action on this legislation early in the current session of Congress.
Taking account of the important and fundamental
legal and policy issues raised by these applications,
and their pending consideration before the Congress,
the Board reached the tentative judgment that it could
not approve the proposed bank acquisitions in view of
present law and expressions of Congressional intent,
subject to any further consideration by the Congress.
However, the Board has, in the past, taken the position that the processing of an application may be
suspended where the issues raised are the subject of
pending litigation, legislation or rulemaking. Accordingly, the Board staff has informed the Applicants of
the Board's views on these matters and the Applicants
have requested the Board to suspend the processing of
their applications. Similarly, because of the pending
legislation, the Board decided to defer further action
on the rulemaking now in progress on section 225.4(e)
of Regulation Y, which permits subsidiaries of state
banks that are owned by bank holding companies to
acquire or form an operating subsidiary to engage in
any activity that the bank itself may engage in directly.
REGULATION
Y:
REVISION
The Federal Reserve Board has made public a
complete revision of its Regulation Y (Bank
Holding Companies and Change in Bank Control), including liberalization of procedures that
should reduce by a third the time now required
for handling applications.
The Board's revision added five activities to
the list of bank-related activities permissible for
bank holding companies, and approved incorporation into the regulation of certain standing
Board interpretations, including interpretations
of definitions of the terms "demand deposit" and
"commercial loan" in the Bank Holding Company Act's definition of "bank."
The Board acted after review of some 800
letters of comment received following publication in May of a proposed complete overhaul of
Regulation Y. The overhaul is part of the Board's
Regulatory Improvement Project for reviewing
and modernizing all of its regulations.
The Board also approved seeking public comment on the possible addition of a number of
activities to the list of activities permissible for
bank holding companies, as suggested by commenters on the May proposal, including the
scope of permissible insurance activities for bank
holding companies under Title VI of the Garn-St
Germain Depository Institutions Act of 1982. (A
20
Federal Reserve Bulletin • January 1984
separate Federal Register notice containing
these proposed new activities will be published
in the near future.)
REGULATION
O:
AMENDMENTS
The Federal Reserve Board has approved
changes in its Regulation O (Loans to Executive
Officers, Directors, and Principal Shareholders
of Member Banks) to conform it to the Garn-St
Germain Depository Institutions Act of 1982.
The Board acted after a review of comment
received on a proposal made in October.
The act deleted certain reporting and disclosure requirements with respect to loans to executive officers, principal shareholders, and their
related interests, and instead gave federal bank
regulators authority to issue rules concerning
reporting and disclosure of such loans by a
federally insured bank or by any of an insured
bank's correspondent banks.
In June, the Federal Financial Institutions
Examination Council, on which the three federal
bank regulators are represented, made proposals
designed to implement the portions of the GarnSt Germain Act dealing with insider loans, to be
effective December 31, 1983. The Council recommended that the federal bank regulators
amend their regulations accordingly.
The Board's revisions of Regulation O substantially implement the Garn-St Germain Act
respecting insider lending as recommended by
the Examination Council. Aside from deletion of
a reporting form and certain recordkeeping requirements, the regulation, as revised, would
require member banks to disclose, upon request,
the name of each executive officer and principal
shareholder, who—together with their related
interests—had loans from the bank or its correspondent banks equal to a minimum of 5 percent
of the member bank's capital and surplus, or
$500,000, whichever is less, except that such
loans not exceeding $25,000 need not be disclosed.
REGULATION
Q:
AMENDMENTS
The Federal Reserve Board has revised its Regulation Q (Interest on Deposits) to conform the
regulation to recent actions of the Depository
Institutions Deregulation Committee (DIDC).
The modifications to Regulation Q, effective
January 1, 1984, deal with actions of the DIDC at
its June 30 and September 30 meetings, concerning the removal (effective December 1, 1983) of
the $2,500 minimum denomination on money
market deposit accounts, Super NOW (negotiable order of withdrawal) accounts, and 7- to 31day accounts for individual retirement account
and Keogh depositors. The revision also phases
out these minimums for other depositors effective January 1, 1985, and January 1, 1986. The
modifications remove the differential between
the interest rate ceiling on passbook savings
accounts and 7- to 31-day deposits under $2,500
at both thrift institutions and commercial banks,
effective January 1, 1984, making the ceiling for
all such accounts 5V2 percent.
The Board's official notice of its action, giving
details of these changes, may be obtained from
the Federal Reserve Banks.
REGULATION
X:
REVISION
The Federal Reserve Board has adopted a proposal that completely revises Regulation X
(Rules Governing Borrowers Who Obtain Securities Credit). The new rule becomes effective
January 23, 1984.
The revision of Regulation X is part of the
Board's Regulatory Improvement Project in
which the Board is reviewing and revising all its
regulations to update them, simplify their language, eliminate obsolete or unneeded language
or provisions, and lighten the burden of compliance. The Board has previously, under this project, completely revised Regulations G, T, and
U, which apply to lenders (as distinguished from
borrowers under Regulation X) that give credit
for purchasing or carrying securities.
The Board adopted the revised regulation after
a review of comment received on proposed revisions issued in October. The major substantive
changes to Regulation X are the exclusion of
purely domestic borrowings, which are already
regulated by margin rules applicable to lenders,
and an increase in the exemption for margin
credit obtained by U.S. citizens residing abroad
from $5,000 to $100,000. The final rule reflects a
Announcements
modification from the proposed rule in that borrowers who willfully cause credit to be extended
in contravention of the margin rules will not be
excluded from the scope of the regulation.
CHANGES IN STATISTICAL RELEASES ON
MONEY STOCK AND RESERVES
DATA
The Federal Reserve Board announced on January 13, 1984, a series of changes in the content
and timing of its statistical releases on money
stock and reserves data that will occur with the
forthcoming conversion to contemporaneous reserve requirements (CRR).
Under contemporaneous reserves, the reserve
computation and maintenance periods will
change from one to two weeks. Reserves will be
maintained beginning two days after the opening
of the computation period for transaction accounts. At present, there is a two-week lag from
the beginning of the one-week computation period to the beginning of the one-week reserve
maintenance period.
The initial computation period for required
reserves on transaction accounts will begin Tuesday, January 31, and end Monday, February 13.
The initial reserve maintenance period will begin
Thursday, February 2, and end Wednesday,
February 15. Money stock and reserves data will
continue to be issued on a weekly basis with the
following changes.
Money
Stock and Liquid
Assets—H.6
The H.6 will be published each Thursday at 4:15
p.m., one day earlier than now. The release will
be essentially unchanged in content. Ml and
certain other deposit data will continue to be
published weekly, but the figures will pertain to a
week ending on a Monday, consistent with the
CRR reporting cycle. The last publication of the
current H.6 will be on February 10, and the
initial publication of the new H.6 is scheduled for
February 16. It is anticipated that the February
16 release also will contain revisions associated
with the annual benchmark and seasonal factor
review. Historical data reflecting all these
changes will be available upon request as soon
thereafter as possible; data for weeks ending on
21
Monday, both seasonally adjusted and not seasonally adjusted, will be extended back to 1975.
Factors Affecting Reserves of
Depository
Institutions and Condition Statement
of
F.R.
Banks—H.4.1
The H.4.1 will be published each Thursday at
4:15 p.m.—a day earlier than now—and will
continue to show weekly average and Wednesday data for reserve balances at the Federal
Reserve and factors affecting reserves during the
week ending the preceeding Wednesday, including borrowing at the discount window. It also
will continue to show the Wednesday condition
statement for the Federal Reserve Banks, both
consolidated and for each District separately.
However, all reserves items that depend on a
calculation of required reserves—such as excess
reserves and total reserves—will no longer appear on the H.4.1; they will be shown on the H.3
on a two-week average basis. The last publication of the current H.4.1 will be on February 3,
and the first publication on the new basis is
scheduled for February 9.
Aggregate Reserves of
Depository
Institutions and Monetary
Base—H.3
The H.3 will be published each Thursday at 4:15
p.m., rather than on Monday afternoon as it is
currently. All reserves items that depend on the
calculation of required reserves—including total,
nonborrowed, and excess reserves and the monetary base—will be shown on the basis of averages of two weeks ending every second Wednesday, corresponding to the reserve maintenance
period under CRR. Preliminary estimates of
these two-week averages will be published for
the first time on alternate Thursdays, with a lag
of one day from the Wednesday end of the twoweek reserve maintenance period. Data revisions will be published on intervening Thursdays. The last publication of the old H.3 will be
on February 6 and the first publication of the new
H.3 is scheduled for February 16. Final historical
data for the reserves series on the old basis,
including any revisions to most recent data, will
be made available upon request.
22
Federal Reserve Bulletin • January 1984
As experience is gained about the magnitude
of revisions to the published preliminary estimates of these two-week reserves series, consideration will be given to whether that publication
schedule should be retained or perhaps delayed a
week. Depending on this experience, consideration may also be given, on the other hand, to the
feasibility of publishing estimates of weekly reserves series.
tion of the International Lending Supervision
Act of 1983 that requires banking organizations
to maintain special reserves against certain foreign loans or other foreign assets. The Board
requested comment by January 11, 1984, and
intends to issue final regulations by January 31,
1984.
SYSTEM
MEMBERSHIP:
ADMISSION OF STATE
BANKS
Weekly Summary
Rates—H.9
of Reserves
and
Interest
The H.9—now published each Friday at 4:15
p.m.—will be discontinued because each reserves item will be published on Thursdays in
either the H.4.1 or the H.3, and interest rate data
will continue to be published the following Monday in the release on Selected Interest Rates
(H.15). The last H.9 will be published on February 3.
In light of the substantial changes to data
reporting and reserve computation and maintenance systems occasioned by CRR, transitional
delays in meeting publication schedules for money stock and reserves data may occur initially,
and data revisions for a time could be larger than
usual.
PROPOSED
ACTION
The Federal Reserve Board has requested public
comment on rules proposed to implement a sec-
The following banks were admitted to membership in the Federal Reserve System during the
period December 10, 1983, through January 10,
1984:
Alabama
Pelham . . . . First American Bank of Pelham
California
Fullerton
Pioneer Bank
Santee
Cuyamaca Bank
Florida
Palm City .. First American Bank of Martin
County
Missouri
Girardeau
First Exchange Bank of
Cape Girardeau
Virginia
Fredericksburg
Rappahannock Bank
Grafton
First Virginia BankCommonwealth
23
Record of Policy Actions of the
Federal Open Market Committee
MEETING
HELD ON NOVEMBER
1. Domestic
Policy
14-15,
1983
Directive
The information reviewed at this meeting suggested that real GNP was growing at a relatively
rapid rate in the current quarter, although the
pace of expansion appeared to have moderated
from the annual rates of about 93/4 percent and
nearly 8 percent reported by the Commerce
Department for the second and third quarters
respectively. Renewed strength in personal consumption expenditures and a substantial further
increase in inventory accumulation were expected to contribute to the continued expansion in
economic activity. Meanwhile, price and wage
increases generally have remained moderate, although there has been some pickup in recent
months in average wage costs and in nonfood
consumer prices.
The index of industrial production, which had
risen 1.3 percent in both August and September,
increased 0.8 percent further in October. Output
of business equipment rose sharply, while production of consumer durable goods and construction supplies edged up slightly further, following very large increases in the second and
third quarters. By October the index had risen
about 143A percent from its trough in November
1982 to a level slightly above the previous peak in
July 1981.
Nonfarm payroll employment, adjusted for
strike activity, rose about 330,000 in October,
about the same as the average monthly increase
in the preceding five months. Employment gains
were particularly marked in manufacturing and
service industries, and employment in retail
trade and construction also continued to
strengthen. The civilian unemployment rate fell
0.5 percentage point to 8.8 percent, two percentage points below its peak in December 1982.
The nominal value of retail sales, after changing little on balance during the summer months,
rose about VA percent in both September and
October. Outlays at apparel stores and furniture
and appliance outlets rose substantially in October, and sales at automotive outlets increased
markedly in both months. Sales of new domestic
automobiles picked up to an average annual rate
of 7 million units in the two months, and sales of
imported cars surged in October, apparently in
response to the increased availability of popular
Japanese models. Consumers remained optimistic about the near-term outlook, according to
recent surveys of consumer confidence. Moreover, recent data indicated marked gains in consumers' real disposable incomes, reflecting substantial increases in nominal personal income
augmented by the midyear tax cut and a continued moderate rate of increase in the average
level of prices.
Following a surge in August, private housing
starts fell to an annual rate of 1.65 million units in
September, close to their average in the second
quarter. Newly issued permits for residential
construction also fell in September, marking the
second consecutive monthly decline. Sales of
existing homes remained at about the reduced
July-August pace, while sales of new homes rose
after three months of decline.
Business spending for capital goods has remained strong. Outlays for producers' durable
equipment, which had increased at an annual
rate of about 20 percent in real terms in the
second quarter, rose at a rate of nearly 16
percent in the third quarter. Recent data on new
orders and shipments indicated further strength
in the demand for business equipment. Investment in nonresidential structures rose at an annual rate of about 12 percent in the third quarter,
after declines earlier in the year.
The producer price index for finished goods
24
Federal Reserve Bulletin • January 1984
rose 0.3 percent in October, about the same as in
other recent months. Most of the October increase was attributable to higher prices for consumer foods; prices of energy-related items and
of finished consumer goods other than foods
were little changed. Thus far in 1983 the index
had increased at an annual rate of less than 1
percent. The consumer price index rose 0.5
percent in September, following advances of 0.4
percent in the preceding two months. Consumer
prices had changed little early in the year and
over the first nine months of 1983 had increased
at an annual rate of about 33/4 percent. The index
of average hourly earnings rose somewhat more
in September and October than in previous
months but the index has risen more slowly this
year than in 1982.
In foreign exchange markets the trade-weighted value of the dollar against major foreign
currencies had risen a little more than 1 percent
since early October. The eruption of political and
military conflicts in a number of locations around
the world was a factor in the dollar's strength, as
some investors viewed the dollar as a "safe
haven" during the period of heightened international tensions. The rise was also associated in
part with some widening of the differential between U.S. and key foreign interest rates. The
U.S. foreign trade deficit increased considerably
in the third quarter as imports, especially of
petroleum, rose faster than exports.
At its meeting on October 4, 1983, the Committee had decided that in the short run, open
market operations should be directed toward
maintaining the slightly reduced reserve restraint
that had been sought in the weeks just prior to
that meeting. This policy was expected to be
associated with growth of both M2 and M3 at an
annual rate of around 8'/> percent for the period
from September to December. The members had
agreed that the need for greater or lesser restraint
on reserve conditions should be evaluated
against the background of developments relating
to the strength of the economic recovery, the
outlook for inflation, and conditions in domestic
and international financial markets. Depending
on such developments, lesser restraint would be
acceptable in the event of a significant shortfall
in the growth of the aggregates, while somewhat
greater restraint would be acceptable in the con-
text of more rapid growth in the aggregates. The
Committee anticipated that Ml growth at an
annual rate of around 7 percent from September
to December would be consistent with its fourthquarter objectives for the broader aggregates,
and that expansion in total nonfinancial debt
would remain within the range of 8Vz to IV/2
percent established for the year. The intermeeting range for the federal funds rate was retained
at 6 to 10 percent.
In October, both M2 and M3 grew at annual
rates close to the 8V2 percent pace sought by the
Committee for the September-to-December period: growth in M2, after slowing substantially
over the summer months, accelerated to an estimated annual rate of about 9 percent, while
growth in M3 was at an estimated annual rate of
about 8V4 percent. On the other hand, expansion
in Ml, at an annual rate of about IV2 percent,
remained low. Through October, M2 was at a
level in the lower portion of the Committee's
range for 1983 and M3 was in the upper portion
of its range. Ml was in the lower portion of the
Committee's monitoring range for the second
half of the year.
Growth in the debt of domestic nonfinancial
sectors was estimated to have slowed somewhat
in October, but it remained well within the
Committee's monitoring range for the year.
Growth in funds raised by private sectors apparently moderated, while funds raised by the federal government continued relatively large. Expansion in credit at U.S. commercial banks
increased at an estimated annual rate of about 10
percent in October, considerably faster than in
September and close to the average pace for the
year to date. The acceleration in October reflected primarily a substantial increase in banks'
acquisitions of U.S. Treasury securities but also
strong growth in consumer loans. Borrowing by
businesses remained moderate, as funds generated internally covered the bulk of financing needs;
such borrowing continued to be concentrated in
the short-term area.
Total reserves contracted somewhat in October, but growth of nonborrowed reserves (including extended credit at the discount window)
picked up. Adjustment plus seasonal borrowing
averaged $630 million during the five statement
weeks ending November 9, somewhat below the
Record of Policy Actions of the FOMC
level that had prevailed during most weeks in the
previous intermeeting interval.
Interest rates generally fluctuated in a narrow
range over the intermeeting period. Federal
funds traded mainly around 93/s percent, down
from earlier weeks. Other short-term rates were
up marginally on balance over the intermeeting
period. Most long-term rates rose somewhat,
apparently in response to indications of continued strength in economic activity and to uncertainties about the prospective pattern of Treasury financing as passage of legislation to raise
the debt ceiling was delayed. In contrast, average rates on new commitments for fixed-rate
conventional home mortgage loans declined
about 20 basis points and the ceiling rate on
regular FHA/VA mortgage loans was reduced Vi
percentage point to 12V2 percent.
The staff projections presented at this meeting
indicated that growth in real GNP would slow
from the rapid rate of recent quarters to a more
moderate pace during 1984. A key element in the
expected slowdown was a projection of lessened
stimulus from inventory rebuilding and housing
activity; growth in consumer spending was also
projected to slow somewhat. On the other hand,
business fixed investment was expected to accelerate and the foreign sector was expected to be
less of a damping factor over the course of 1984
than over 1983. A decline in the unemployment
rate was anticipated over the projection period,
and upward pressures on prices were expected to
remain generally moderate.
In the Committee's discussion of the economic
situation and outlook, members commented that
the economic expansion had remained stronger
than generally anticipated. Reports from around
the country suggested increasingly widespread
optimism about business conditions and a high
degree of consumer confidence. While all the
members expected the rate of economic growth
to moderate over the year ahead, there were
some differences of view with regard to the
timing and likely extent of the slowdown. Some
members anticipated that the slowdown might be
appreciably less than projected by the staff, with
unfavorable implications for inflationary pressures and the ultimate sustainability of the expansion. In support of this view, reference was
made to the favorable conditions for a surge in
25
business fixed investment created by the momentum of the expansion. In addition, it was
pointed out that a highly stimulative fiscal policy
remained in prospect for 1984. Thus, while the
expansionary impact of housing and inventory
accumulation could be expected to wane during
the second year of the recovery, vigorous growth
in fixed investment expenditures in conjunction
with the prospective federal deficit might well
sustain relatively rapid expansion in overall economic activity during the year ahead. It was also
suggested that, at least for the near term, consumer spending and inventory accumulation
might provide more stimulus to the economy
than was generally anticipated.
Other members placed more emphasis on
some elements of potential weakness in the economic outlook. It was pointed out that there was
as yet no firm evidence that business fixed
investment would prove to be exceptionally
strong during 1984. Indeed, such investment
might continue to be held down by the persistence of weak demand for the output of some
traditional producers of capital equipment, and,
more generally, by relatively high interest rates
in the context of massive Treasury debt financings. International developments might also continue to exert a retarding impact on the domestic
economy, especially if the dollar failed to depreciate as many observers expected and if the
economies of foreign countries remained relatively sluggish, thereby limiting export markets
for U.S. products while encouraging foreign
firms to compete aggressively in U.S. markets.
Reference was also made to the possibility that
problems related to the international debt situation could have adverse consequences for U.S.
financial markets and economic activity.
With regard to the prospects for prices, several
members questioned whether further progress
could be made in containing inflationary pressures if the rate of economic expansion did not
slow to a more moderate pace over the year
ahead. One member observed that by late 1984,
capacity utilization rates could reach levels that
would tend to generate inflationary cost pressures even if unemployment were still high relative to earlier expansion periods. On the other
hand, some members felt that there was little
current evidence that price and wage pressures
26
Federal Reserve Bulletin • January 1984
or inflationary expectations were worsening.
One member also noted that the economy was
still operating well below capacity and that further significant improvements in productivity,
along with competitive pressures from world
markets, were likely to restrain inflation during
1984.
In the Committee's discussion of policy for the
period immediately ahead, all of the members
found acceptable a policy directed toward maintaining the existing degree of reserve restraint. In
the view of some, however, an argument could
be made in favor of a small, precautionary step in
the direction of firming in light of the continuing
strength of the economic expansion and the
associated danger of a resurgence of inflationary
pressures during the year ahead. While acknowledging the risks of inflation in a rapidly expanding economy combined with large budget deficits
and the relatively rapid monetary growth earlier
in the year, most members saw sufficient uncertainties in the outlook to counsel against any
change in reserve pressures at this time. Some
members were also concerned that under the
prevailing circumstances even a modest increase
in restraint on reserves might have a disproportionate impact on domestic and international
financial markets. The result could be an increase in domestic interest rates large enough to
have damaging consequences for housing and
other interest-sensitive sectors of the economy
and to intensify greatly the pressures on countries with severe external debt problems.
According to a staff analysis, a policy of maintaining the present degree of restraint on reserve
conditions was likely to be associated with
growth in M2 and M3 at rates that were consistent with the objectives that the Committee had
set previously for the fourth quarter and for the
year as a whole. Such a policy might also result
in an acceleration in the growth of Ml over the
last two months of the year, primarily in response to increasing needs for transaction balances in a rapidly expanding economy. Given the
limited growth of Ml in October, however, its
expansion for the entire fourth quarter was likely
to be below the growth rate of around 7 percent
anticipated earlier. The staff also indicated that
the demand for transaction balances remained
subject to a great deal of uncertainty, and that
transaction needs related to strengthened business activity could continue to be met for a time,
at least in part, out of balances that had been
built up earlier, including NOW accounts.
One member indicated a preference for giving
increased weight to Ml in the formulation of
monetary policy and commented that its slow
growth, should it persist, could threaten the
sustainability of the economic expansion. Other
members commented that the deceleration of Ml
growth in recent months had to be evaluated
against the background of unusually rapid expansion in the latter part of 1982 and the first half of
1983. It was also pointed out that the broader
monetary aggregates emphasized by the Committee had been growing in line with the Committee's objectives.
All the members indicated that they could
support a directive that called for maintaining the
current degree of restraint on reserve positions
over the near term, but they also agreed that the
directive should continue to allow for some leeway to adjust the degree of reserve pressure
during the intermeeting period. In this connection, a number of members were in favor of being
particularly sensitive to evidence of continued
unexpected strength in the economy and the
related potential for greater price and wage pressures, should growth in the monetary aggregates
appear to be exceeding expectations.
At the conclusion of the discussion the Committee decided that no change should be made at
this time in the degree of restraint on reserve
positions. The members anticipated that such a
policy would continue to be associated with
growth of both M2 and M3 at an annual rate of
around 8V2 percent for the period from September to December. The members also agreed that
the need for greater or lesser restraint on reserve
conditions should be evaluated against the background of developments relating to the strength
of the economic recovery, the outlook for inflation, and conditions in domestic and international financial markets. Depending upon such developments over the weeks ahead, greater restraint
would be acceptable in the event of more rapid
growth in the broader monetary aggregates,
while lesser restraint would be acceptable in the
context of a significant shortfall in such growth.
The Committee anticipated that, given the rela-
Record of Policy Actions of the FOMC
tively slow growth of Ml in October, its expansion at an annual rate of around 5 to 6 percent
from September to December would be consistent with the fourth-quarter objectives for the
broader aggregates, and that expansion in total
domestic nonfinancial debt would remain within
the range of 8V2 to IIV2 percent established for
the year. It was agreed that the intermeeting
range for the federal funds rate, which provides a
mechanism for initiating consultation of the
Committee, would remain at 6 to 10 percent.
At the conclusion of the discussion, the Committee issued the following domestic policy directive to the Federal Reserve Bank of New
York:
The information reviewed at this meeting suggests
that real G N P is growing at a relatively rapid pace in
the current quarter, although the rate of expansion
appears to have moderated since the spring and summer. In October, industrial production increased appreciably, following large gains in previous months.
Nonfarm payroll employment rose substantially further, and the civilian unemployment rate declined V2
percentage point to 8.8 percent. After changing little
on balance during the summer months, retail sales
strengthened in September and October. Housing
starts and permits declined in September while home
sales rose somewhat. Recent data on new orders and
shipments indicate further strength in the demand for
business equipment. Producer and consumer prices
have continued to increase at about the same pace as
in other recent months. The index of average hourly
earnings rose somewhat more in September and October than in previous months, but over the first ten
months of the year the index has risen more slowly
than in 1982.
The foreign exchange value of the dollar has risen
since early October against a trade-weighted average
of major foreign currencies. The U.S. foreign trade
deficit increased considerably in the third quarter,
with imports, especially of petroleum, rising faster
than exports.
After slowing substantially over the summer
months, growth in M2 accelerated in October, while
M3 continued to expand at a moderate rate. Through
October, M2 was at a level in the lower portion of the
Committee's range for 1983 and M3 in the upper
portion of its range. M l continued to grow at a sluggish
pace in October and was in the lower portion of the
Committee's monitoring range for the second half of
the year. Longer-term market rates have risen somewhat on balance since early October, and short-term
rates generally have fluctuated in a narrow range.
The Federal Open Market Committee seeks to foster monetary and financial conditions that will help to
reduce inflation further, promote growth in output on a
27
sustainable basis, and contribute to a sustainable pattern of international transactions. At its meeting in
July the Committee reconsidered the growth ranges
for monetary and credit aggregates established earlier
for 1983 in furtherance of these objectives and set
tentative ranges for 1984. The Committee recognized
that the relationships between such ranges and ultimate economic goals have become less predictable;
that the impact of new deposit accounts on growth of
the monetary aggregates cannot be determined with a
high degree of confidence; and that the availability of
interest on large portions of transaction accounts may
be reflected in some changes in the historical trends in
velocity.
Against this background, the Committee at its July
meeting reaffirmed the following growth ranges for the
broader aggregates: for the period from FebruaryMarch of 1983 to the fourth quarter of 1983, 7 to 10
percent at an annual rate for M2; and for the period
from the fourth quarter of 1982 to the fourth quarter of
1983, 6V2 to 91/2 percent for M3. The Committee also
agreed on tentative growth ranges for the period from
the fourth quarter of 1983 to the fourth quarter of 1984
of 6V2 to 9Vi percent for M2 and 6 to 9 percent for M3.
The Committee considered that growth of M l in a
range of 5 to 9 percent from the second quarter of 1983
to the fourth quarter of 1983, and in a range of 4 to 8
percent from the fourth quarter of 1983 to the fourth
quarter of 1984, would be consistent with the ranges
for the broader aggregates. The associated range for
total domestic nonfinancial debt was reaffirmed at 8'/2
to IIV2 percent for 1983 and tentatively set at 8 to 11
percent for 1984.
In implementing monetary policy, the Committee
agreed that substantial weight would continue to be
placed on the behavior of the broader monetary aggregates. The behavior of M l and total domestic nonfinancial debt will be monitored, with the degree of
weight placed on Ml over time dependent on evidence
that velocity characteristics are resuming more predictable patterns. The Committee understood that
policy implementation would involve continuing appraisal of the relationships between the various measures of money and credit and nominal GNP, including
evaluation of conditions in domestic credit and foreign
exchange markets.
The Committee seeks in the short run to maintain
the existing degree of reserve restraint. The action is
expected to be associated with growth of M2 and M3
at annual rates of around 8V2 percent from September
to December, consistent with the targets established
for these aggregates for the year. Depending on evidence about the continuing strength of economic recovery and other factors bearing on the business and
inflation outlook, somewhat greater restraint would be
acceptable should the aggregates expand more rapidly;
lesser restraint might be acceptable in the context of a
significant shortfall in growth of the aggregates from
current expectations. Given the relatively slow growth
in October, the Committee anticipates that Ml growth
28
Federal Reserve Bulletin • January 1984
at an annual rate of around 5 to 6 percent from
September to December will be consistent with its
fourth-quarter objectives for the broader aggregates,
and that expansion in total domestic nonfinancial debt
would remain within the range established for the
year. The Chairman may call for Committee consultation if it appears to the Manager for Domestic Operations that pursuit of the monetary objectives and
related reserve paths during the period before the next
meeting is likely to be associated with a federal funds
rate persistently outside a range of 6 to 10 percent.
Votes for this action: Messrs. Volcker, Solomon,
Gramley, Guffey, Keehn, Martin, Morris, Partee,
Rice, Roberts, Mrs. Teeters, and Mr. Wallich.
Votes against this action: None.
2. Authorization
for
Domestic Open Market
Operations
At this meeting the Committee voted to increase
from $4 billion to $5 billion the limit on changes
between Committee meetings in System Account
holdings of U.S. government and federal agency
securities specified in paragraph 1(a) of the authorization for domestic open market operations,
for the intermeeting period ending with the close
of business on December 20, 1983.
Votes for this action: Messrs. Volcker, Solomon,
Gramley, Guffey, Keehn, Martin, Morris, Partee,
Rice, Roberts, Mrs. Teeters, and Mr. Wallich.
Votes against this action: None.
This action was taken on the recommendation
of the Manager for Domestic Operations. The
Manager had advised that projections for the
upcoming intermeeting period indicated a substantial need for additions to reserves relating to
a seasonal increase in currency in circulation.
Accordingly, the need for net purchases of U.S.
government and federal agency securities during
the intermeeting interval was considered likely to
exceed the standard $4 billion limit on intermeeting changes in holdings of such securities.
29
Legal Developments
AMENDMENT
TO REGULATION
C
The Board is making technical amendments to Regulation C to implement changes in terminology related to
the definition of metropolitan areas, recently adopted
by the U . S . Office of Management and Budget. Regulation C and the H o m e Mortgage Disclosure Act
require certain depository institutions with offices in
metropolitan areas to disclose data about their home
mortgage and h o m e improvement loans each year. The
changes do not affect the manner in which loan data is
disclosed.
Effective J a n u a r y 1, 1984, the Board amends Regulation C as set forth below:
ment and Budget as of the first day of the calendar
year for which the data are compiled.
AMENDMENT
TO REGULATION
D
(h) Standard metropolitan
statistical area or SMSA
means a metropolitan statistical area (MSA) or primary metropolitan statistical area (PMSA), as defined
by the U.S. Office of Management and Budget.
The Board is amending 12 C F R Part 204 (Regulation
D—Reserve R e q u i r e m e n t s of Depository Institutions)
to adjust (1) the a m o u n t of transaction accounts subject to a reserve requirement ratio of three per cent, as
required by the Monetary Control Act of 1980 (Title I
of Pub. L . 96-221; 12 U . S . C . § 461(b)(2)(C)) and (2)
the amount of reservable liabilities of each depository
institution that is subject to a reserve requirement of
zero per cent, as required by the G a r n - S t Germain
Depository Institutions Act of 1982 (Pub. L. 97-320;
12 U . S . C . § 461(b)(ll)(B)). Currently, the first $26.3
million of a depository institution's net transaction
accounts are subject to a three per cent reserve ratio
and $2.1 million of reservable liabilities are exempt
from reserve requirements. The first reserve maintenance period to which the a m e n d m e n t applies begins
January 12, 1984.
Effective January 12, 1984, the Board amends Regulation D by revising paragraph (a) of section 204.9 to
read as follows:
2. Paragraph (a)(2) of section 203.3 is revised to read as
follows:
Part 204—Reserve
Institutions
Section 203.3—Exemptions
Section 204.9—Reserve Requirement Ratios
(a) Asset size and location ***
(2) If it has neither a h o m e office nor a branch office
in a standard metropolitan statistical area (SMSA).
(a)(1) Reserve percentages.
T h e following reserve
ratios are prescribed for all depository institutions,
Edge and Agreement corporations, and United
States branches and agencies of foreign banks:
Part 203—Home
Mortgage
Disclosure
1. N e w paragraph (h) is added to section 203.2 to read
as follows:
Section 203.2—Definitions
3. Paragraph (d)(1) of section 203.4 is revised to read
as follows:
Section 203.4—Compilation of loan data
(d) SMS As and census tracts. For purposes of geographic itemization.
(1) A depository institution shall use the SMSA
boundaries defined by the U . S . Office of Manage
Category
Net transaction
accounts
$0-$28.9 million
over $28.9 million
Nonpersonal time deposits
By original maturity
(or notice period):
Less than 1 xh years
1 Vi years or more
Eurocurrency
liabilities
Requirements
of
Depository
Reserve requirement
3% of amount
$867,000 plus 12% of
amount over $28.9
million
3%
0%
3%
30
Federal Reserve Bulletin • January 1984
(2) Exemption
from reserve requirements.
Each
depository institution, Edge or Agreement corporation, and U . S . branch or agency of a foreign bank is
subject to a zero per cent reserve requirement on an
amount of its transaction accounts subject to the low
reserve tranche in paragraph (a)(1), nonpersonal
time deposits, or Eurocurrency liabilities or any
combination thereof not in excess of $2.2 million
determined in accordance with section 204.3(a)(3) of
this Part.
AMENDMENTS
TO REGULATION
K
The Board has a m e n d e d 12 C . F . R . Part 211, Regulation K , to include travel agency services on the list of
activities that the Board has found to be usual in
connection with the transaction of banking or other
financial operations abroad. Permitting U . S . banking
organizations to offer these services abroad should
enhance their ability to c o m p e t e in foreign markets.
These services may be offered only through a foreign
company located abroad and the company may not
engage in offering travel services in the United States.
In addition the Board has amended Subpart C of
Regulation K, its regulations governing investments
by bank holding companies in export trading companies, to clarify w h e n a b a n k holding company must
provide a subsequent notice of investment to the
Board. The Board also proposes to make a technical
amendment to these regulations regarding the time
within which an investment must be made by the
investor in the export trading company.
Effective D e c e m b e r 20, 1983, the Board amends
Regulation K as set forth below:
Part 211—International
Banking
2. Subpart C of Regulation K (12 C . F . R . 211.31
et seq.) is amended by revising section 211.34(a)(2) to
read as follows, and by adding a new paragraph
211.34(c):
Section 211.34—Procedures for Filing and
Processing Notices
^ ***
(2) Subsequent notice. A n eligible investor shall give
the Board 60 d a y s ' prior written notice of changes in
the activities of an export trading company that is a
subsidiary of the investor if the export trading
c o m p a n y e x p a n d s its activities beyond those described in the initial notice to include:
(i) taking title to goods w h e r e the export trading
c o m p a n y does not have a firm order for the sale of
those goods;
(ii) product research and design;
(iii) product modification, or
(iv) activities not specifically covered by the list of
activities contained in section 4(c)(14)(F)(ii) of the
B H C Act. Such an expansion of activities shall be
regarded as a proposed investment under this
subpart.
(b) ***
(c) Time period for investment.
An investment in an
export trading c o m p a n y that has not been disapproved
shall be made within one year f r o m the date of the
notice not to disapprove, unless the time period is
extended by the Board or by the appropriate Federal
Reserve Bank.
Operations
AMENDMENTS
1. Section 211.5(d)(14) Subpart A of 12 C . F . R . Part 211
is amended by redesignating section 211.5(d)(14) as
section 211.5(d)(15) and adding a new section
211.5(d)(14) to read as follows:
Section 211.5—Investments in Other
Organizations
(d) ***
(14) the operation of a travel agency provided that
the travel agency is operated in connection with
financial services offered abroad by the investor or
others;
TO REGULATION
O
The Board of G o v e r n o r s of the Federal R e s e r v e System is amending 12 C F R Part 215, Regulation O, which
governs loans by a m e m b e r bank to insiders, to
implement a m e n d m e n t s to Titles VIII and IX of the
Financial Institutions Regulatory and Interest Rate
Control Act that w e r e included in Title IV of the G a r n St Germain Depository Institutions Act of 1982. The
amendment replaces certain of the reporting and disclosure requirements previously required by F I R A
with the reporting and disclosure provisions recommended by the Federal Financial Institutions Examination Council.
Effective D e c e m b e r 31, 1983, the Board of Governors is revising 12 C . F . R . Part 215, Regulation O, as
follows:
Legal Developments
Part 215—Loans
to Executive
Officers,
Directors,
and Principal Shareholders
of
Member
Banks
1. Section 215.10 is revised to read as follows:
Section 215.10—Disclosure of Credit From
Member Banks to Executive Officers and
Principal Shareholders
(a) Definitions. For the purposes of this section, the
following definitions apply:
(1) "Principal shareholder
of a member b a n k "
means any person 7 (other than an insured bank, or a
foreign bank as defined in 12 U.S.C. 3101(7)), that,
directly or indirectly, owns, controls, or has power
to vote more than 10 per cent of any class of voting
securities of the member bank. The term includes a
person that controls a principal shareholder (e.g., a
person that controls a bank holding company).
Shares of a bank (including a foreign bank), bank
holding company, or other company owned or controlled by a member of an individual's immediate
family are presumed to be owned or controlled by
the individual for the purposes of determining principal shareholder status.
(2) "Related interest" means:
(A) any company controlled by a person, or
(B) any political or campaign committee the funds
or services of which will benefit a person or that is
controlled by a person.
For the purpose of this section and Subpart B, a
related interest does not include a bank or a
foreign bank (as defined in 12 U.S.C. 3101(7)).
(b) Public
disclosure.
(i) Upon receipt of a written request from the
public, a member bank shall make available the
names of each of its executive officers 8 and
each of its principal shareholders to whom, or
to whose related interests, the member bank
had outstanding as of the end of the latest
previous quarter of the year, an extension of
credit that, when aggregated with all other
outstanding extensions of credit at such time
from the member bank to such person and to all
7. The term "stockholder of record" appearing in 12 U.S.C.
1972(2)(G) is synonymous with the term "person."
8. For purposes of this section and Subpart B, an executive officer
of a member bank does not include an executive officer of a bank
holding company of which the member bank is a subsidiary or of any
other subsidiary of that bank holding company unless the executive
officer is also an executive officer of the member bank.
31
related interests of such person, equaled or
exceeded 5 per cent of the member bank's
capital and unimpaired surplus or $500,000,
whichever amount is less. N o disclosure under
this paragraph is required if the aggregate
amount of all extensions of credit outstanding at
such time from the member bank to the executive officer or principal shareholder of the member bank and to all related interests of such a
person does not exceed $25,000.
(ii) A member bank is not required to disclose
the specific amounts of individual extensions of
credit.
(c) Maintaining records. Each member bank shall
maintain records of all requests for the information
described in paragraph (b) of this section and the
disposition of such requests. These records may be
disposed of after two years from the date of the
request.
2. Section 215.23 is revised to read as follows:
Section 215.23—Disclosure of Credit From
Correspondent Banks to Executive Officers and
Principal Shareholders
(a) Public
disclosure.
(i) Upon receipt of a written request from the public,
a member bank shall make available the names of
each of its executive officers and each of its principal shareholders to whom, or to whose related
interests, any correspondent bank of the member
bank had outstanding, at any time during the previous calendar year, an extension of credit that, when
aggregated with all other outstanding extensions of
credit at such time from all correspondent banks of
the member bank to such person and to all related
interests of such person, equaled or exceeded 5
per cent of the member bank's capital and unimpaired surplus o r $500,000, whichever amount is
less. N o disclosure under this paragraph is required
if the aggregate amount of all extensions of credit
outstanding from all correspondent banks of the
member bank to the executive officer or principal
shareholder of the member bank and to all related
interests of such a person does not exceed $25,000 at
any time during the previous calendar year.
(ii) A member bank is not required to disclose the
specific amounts of individual extensions of credit.
(b) Maintaining records. Each member bank shall
maintain records of all requests for the information
described in paragraph (a) of this section and the
disposition of such requests. These records may be
disposed of after two years from the date of the
request.
32
Federal Reserve Bulletin • January 1984
3. Paragraph (a) of Section 215.20 is revised and the
first sentence of paragraph (b) is amended to read as
follows:
Section 215.20—Authority, Purpose, and Scope
(a) Authority.
This Subpart is issued pursuant to
section ll(i) of the Federal Reserve Act (12 U . S . C .
248(i» and 12 U . S . C . 1972 (2)(F)(vi).
(b) Purpose and scope. This Subpart implements the
reporting requirements of Title VIII of the Financial
Institutions Regulatory and Interest Rate Control Act
of 1978 (FIRA) ( P . L . 95-630) as a m e n d e d by the
G a r n - S t Germain Depository Institutions Act of 1982
(P.L. 97-320), 12 U . S . C . 1972 (2)(g).***
AMENDMENTS
TO REGULATION
Q
The Board has amended 12 C F R Part 217 (Regulation
Q-Interest on Deposits) to incorporate rules of the
Depository Institutions Deregulation
Committee
( " D I D C " ) , adopted pursuant to the Depository Institutions Deregulation Act of 1980 (Title II of Pub. L.
96-221). The a m e n d m e n t s to Regulation Q are technical in nature and conform the B o a r d ' s rules to those of
DIDC. These a m e n d m e n t s became effective January
1, 1984. Other conforming a m e n d m e n t s are effective
January 1, 1985, and J a n u a r y 1, 1986, as set forth
below:
The Board amends 12 C F R Part 217, effective on the
dates indicated, as follows:
Part 217—Interest
on
Deposits
1. Effective January 1, 1984:
Section 217.4—[Amended]
a. Section 217.4 is a m e n d e d by removing paragraphs
(d)(l)(iii)(D) and (E) and in paragraph (d)(6) by removing " S u b p a r a g r a p h s (l)(iii)(E) a n d " and inserting
" p a r a g r a p h " in its place; and
b. Section 217.7 introductory text is amended by
revising paragraphs (b), (c)(1), (c)(2), and (c)(2)(ii)(A);
revising paragraph (e)(1); and revising paragraph
(g)(1), as follows:
Section 217.7—Supplement: Maximum rates of
Interest Payable by Member Banks on Time
and Savings Deposits
(b) Time deposits of less than $2,500 with original
maturities or required notice periods prior to with
drawal of seven to 31 days. Except as provided in
paragraphs (d) and (e), no member bank shall pay
interest on any time deposit of less than $2,500 with an
original maturity or required notice period prior to
withdrawal of 31 days or less at a rate in excess of 5—V2
per cent.
(c) Savings deposits.
(1) E x c e p t as provided in paragraph (g), no m e m b e r
bank shall pay interest at a rate in excess of 5-V2 per
cent on any savings deposit.
(2) A m e m b e r bank m a y pay interest on any deposit
or account subject to negotiable or transferable
orders of withdrawal that is authorized pursuant to
12 U . S . C . 1832(a) or a deposit or account described
in section 217.5(c)(2)—
(ii)(A) at any rate agreed to by the depositor on
any deposit or account subject to negotiable or
transferable orders of withdrawal that is authorized pursuant to 12 U . S . C . 1832(a) subject to
the conditions of this paragraph (c)(2) with an
initial balance and an average deposit balance
(as c o m p u t e d in paragraph (c)(2)(ii)(B) of this
section) of no less than $2,500. H o w e v e r , for an
account with an average balance of less than
$2,500, a m e m b e r bank shall not pay interest in
excess of the rate specified in paragraph (c)(2)(i)
of this section for the entire computation period, as described in paragraph (c)(2)(ii)(B). Further, a m e m b e r bank may pay interest at any
rate agreed to by the depositor on an account
issued under this paragraph (c)(2)(ii), regardless
of a m o u n t , if that account consists of f u n d s
deposited to the credit of, or in which the entire
beneficial interest is held by, an individual
pursuant to an Individual Retirement Account
agreement or Keogh ( H . E . 10) Plan establish
pursuant to 26 U . S . C . (I.R.C. 1954) 219, 401,
408 and related provisions.
(e) Seven-to 31-day time deposits.
(l)(i) Notwithstanding paragraph (d), a m e m b e r
bank may pay interest at any rate as agreed to by
the depositor on any time deposit with a maturity
or required notice period of not less than seven
days nor more than 31 days—
(A) in an amount of $2,500 or more; or
(B) notwithstanding paragraph (b), if such funds
are deposited to the credit of, or in which the
entire beneficial interest in such f u n d s is held
Legal Developments
by, an individual pursuant to an Individual
Retirement A c c o u n t agreement or Keogh (H.R.
10) Plan established pursuant to 26 U . S . C .
(I.R.C. 1954) 219, 401, 408 and related provisions.
(ii) H o w e v e r , except as provided in paragraph
(e)(l)(i)(B), a m e m b e r bank shall not pay interest
in excess of the ceiling rate for regular savings
deposits or account specified in paragraph (c)(1)
of this section on any day the balance in a time
deposit issued under this paragraph is less than
$2,500.
(g) M o n e y market deposit accounts.
(l)(i)Notwithstanding paragraph (c), a member bank
may pay interest at any rate on a deposit account
as described in this paragraph—
(A) with an initial balance of no less than $2,500
and an average deposit balance (as computed in
paragraph (g)(2) of no less than $2,500; or
(B) that consists of f u n d s deposited to the credit
of, or in which the entire beneficial interest is
held by an individual pursuant to an Individual
Retirement Account agreement or Keogh (H.R.
10) Plan established pursuant to 26 U . S . C .
(I.R.C. 1954) 219, 401, 408 and related provisions.
(ii) H o w e v e r , except as provided in paragraph
(g)(l)(i)(B), for an account with an average balance of less than $2,500, a member bank shall not
pay interest in excess of the ceiling rate specified
for N O W accounts under paragraph (c)(2)(i) of
this section for the entire computation period, as
described in paragraph (g)(2) of this section.
Sections 217.1 and 217.7—[Amended]
2. Effective January 1, 1985:
Sections 217.1(h)(l)(iii)(B) and 217.7 are amended by
removing " $ 2 , 5 0 0 " w h e r e v e r it appears and inserting
"$1,000" in its place.
3. Effective January 1, 1986:
a. Section 217.l(h)(iii) is amended by removing " ( A ) " ,
inserting a period after the phrase " s e v e n d a y s " , and
removing " o r " and paragraph (B); and
b. Section 217.7 is amended by: removing the text of
paragraph (b) and inserting (Reserved) in its place; by
removing paragraph (g)(8); and by revising paragraphs
(c)(2), (e)(1), and (g)(1) to read as follows:
33
Section 217.7—Supplement: Maximum Rates of
Interest Payable by Member Banks on Time
and Savings Deposits.
(c) Savings deposits. ***
(2) A m e m b e r bank m a y pay interest on any deposit
or account—
(i) described in § 217.5(c)(2) at a rate not to exceed
5-y* per cent; or
(ii) subject to negotiable or transferable orders of
withdrawal that is authorized pursuant to 12
U . S . C . 1832(a) at any rate agreed to by the
depositor.
(e) Seven- to 31-day time deposits.
(1) Notwithstanding paragraph (d), a m e m b e r bank
may pay interest at any rate as agreed to by the
depositor on any time deposit with a maturity or
required notice period prior to maturity of not less
than seven days nor more than 31 days.
(g) Money mart deposit accounts.
(1) Notwithstanding paragraph (c), a m e m b e r bank
may pay interest at any rate on a deposit account as
described in this paragraph.
REVISION
OF REGULATION
X
The Board has revised, in its entirety, Regulation X,
which governs b o r r o w e r s w h o obtain credit for the
purpose of purchasing or carrying securities. The
newly revised Regulation X is written in simplified
language, organized in a logical fashion and reduced in
regulatory burden.
Effective January 23, 1984, the Board revises Regulation X in its entirety to read as follows:
Part 224—Borrowers
of Securities
Credit
Section 224.1 Authority, P u r p o s e , and Scope
Section 224.2 Definitions
Section 224.3 Margin Regulations to be Applied
by N o n e x e m p t e d Borrowers
Section 224.1—Authority, Purpose, and Scope
(a) Authority and purpose. Regulation X (this part) is
issued by the Board of Governors of the Federal
Reserve System (the Board) under the Securities Exchange Act of 1934, as amended (the Act) (15 U . S . C .
34
Federal Reserve Bulletin • January 1984
78a et seq.). This part implements section 7(f) of the
Act (15 U . S . C . 78g(f)), the purpose of which is to
require that credit obtained within or outside the
United States complies with the limitations of the
B o a r d ' s Margin Regulations G , T, and U (12 C F R 207,
220, and 221, respectively).
(b) Scope and exemptions. T h e Act and this part apply
the B o a r d ' s margin regulations to United States persons and foreign p e r s o n s controlled by or acting on
behalf of or in conjunction with United States persons
(hereinafter borrowers), w h o obtain credit outside the
United States to p u r c h a s e or carry United States
securities, or within the United States to purchase or
carry any securities (both types of credit are hereinafter referred t o as p u r p o s e credit). T h e following borrowers are exempt f r o m the Act and this part:
(1) any borrower w h o obtains purpose credit within
the United States, unless the borrower willfully
causes the credit to be extended in contravention of
Regulations G, T, or U .
(2) any borrower w h o s e permanent residence is
outside the United States and w h o does not obtain
or have outstanding, during any calendar year, a
total of more than $100,000 in purpose credit obtained outside the United States; and
(3) any borrower w h o is e x e m p t by Order upon
terms and conditions set by the Board.
Section 224.2—Definitions
The terms used in this part have the meanings given to
them in sections 3(a) and 7(f) of the Act, and in
Regulations G , T, and U . Section 7(f) of the Act
contains the following definitions:
(a) " U n i t e d States p e r s o n " includes a person which is
organized or exists u n d e r the laws of any State or, in
the case of a natural person, a citizen or resident of the
United States; a domestic estate; or a trust in which
one or more of the foregoing persons has a cumulative
direct or indirect beneficial interest in excess of 50 per
centum of the value of the trust.
(b) " U n i t e d States s e c u r i t y " means a security (other
than an exempted security) issued by a person incorporated under the laws of any State, or whose principal place of business is within a State.
(c) " F o r e i g n person controlled by a United States
p e r s o n " includes any noncorporate entity in which
United States persons directly or indirectly have more
than a 50 per c e n t u m beneficial interest, and any
corporation in which one or more United States persons, directly or indirectly, own stock possessing
more than 50 per c e n t u m of the total combined voting
power of all classes of stock entitled to vote, or more
than 50 p e r centum of the total value of shares of all
classes of stock.
Section 224.3—Margin Regulations to be
Applied by Nonexempted Borrowers
(a) Credit Transactions Outside the United States. N o
borrower shall obtain p u r p o s e credit f r o m outside the
United States unless it conforms to the following
margin regulations:
(1) Regulation T (12 C F R 220) if the credit is
obtained f r o m a foreign branch of a brokei-dealer;
(2) Regulation U (12 C F R 221) if the credit is
obtained f r o m a foreign branch of a bank, except for
the requirement of a p u r p o s e statement (12 C F R
221.3(b) and (c)); and
(3) Regulation G (12 C F R 207) if the credit is
obtained f r o m any other lender outside the United
States, except for the requirement of a purpose
statement (12 C F R 207.3(e) and (f)).
(b) Credit Transactions Within the United States. A n y
borrower w h o willfully causes credit to be extended in
contravention of Regulations G, T, or U , and w h o ,
therefore, is not exempted by section 224.1(b)(1) of
this part, must c o n f o r m the credit to the margin
regulation that applies to the lender.
(c) Inadvertent
noncompliance.
N o borrower w h o
inadvertently violates this part and w h o acts to remedy
the violation as soon as practicable shall be deemed in
violation of this part.
AMENDMENT
DELEGATION
TO RULES
REGARDING
OF AUTHORITY
The Board is amending 12 C . F . R . Part 265, its Rules
Regarding Delegation of Authority, to delegate to the
Federal Reserve B a n k s authority to act on notifications by bank holding companies to invest in export
trading companies. It is anticipated that this delegation
of authority would aid in the expeditious processing of
export trading c o m p a n y notifications.
Effective D e c e m b e r 20, 1983, the Board of Governors amends its Rules Regarding Delegation of Authority (12 C . F . R . Part 265) by adding a new section,
265.2(f)(58), and by revising section 265.2(a)(2) to read
as follows:
Legal Developments
Part 265—Rules
Authority
Regarding
Delegation
of
Section 265.2—Specific Functions Delegated to
Board Employees and to Federal Reserve
Banks
35
cifically covered by the list of services contained
in section 4(c)(14)(F)(ii) of the B H C Act;
(v) the proposed leveraging ratio of the E T C
(assets: capital) does not exceed 10:1, and
(vi) no other significant policy issue is raised on
which the Board has not previously expressed its
view.
(a) ***
(2) U n d e r the provisions of sections 18(c) and
18(c)(4) of the Federal Deposit Insurance Act (12
U . S . C . 1828(c) and 1828(c)(4)), sections 3(a), 4(c)(8)
and 4(c)(14) of the Bank Holding Company Act (12
U . S . C . 1842(a), 1843(c)(8) and (14)), the Change in
Bank Control Act (12 U . S . C . 18170)) and section 25
and 25(a) of the Federal Reserve Act (12 U . S . C .
601-604a and 611 et seq.), and sections 225.3(b) and
(c), and 225.4(a) and (b) and 225.7 of Regulation Y
(12 C . F . R . 225.3(b) and (c), 225.4(a) and (b), and
225.7), sections 211.3(a), 211.4(c), 211.5(c) and
211.34 of Regulation K (12 C . F . R . 211.3(a), 211.4(c),
211.5(c) and 211.34), to furnish reports on competitive factors involved in a bank merger to the Comptroller of the Currency and the Federal Deposit
Insurance Corporation and to take actions the Reserve Bank could take except for the fact that the
Reserve Bank may not act because a director or
senior officer of any holding company, bank, or
company involved in the transaction is a director of
a Federal Reserve Bank or branch.
^
***
(58) U n d e r section 4(c)(14) of the Bank Holding
Company Act and Subpart C of the B o a r d ' s Regulation K, to issue a notice of intention not to disapprove a p r o p o s e d investment in an export trading
company if all the following criteria are met:
(i) the p r o p o s e d export trading company will be a
wholly-owned subsidiary of a single investor, or
ownership will be shared with an individual or
individuals involved in the operation of the export
trading company ;
(ii) a bank holding c o m p a n y investor and its lead
bank meet the minimum capital adequacy guidelines of the Board and the Comptroller of the
Currency or have enacted capital enhancement
plans that have been determined by the appropriate supervisory authority to be acceptable;
(iii) the proposed export trading company will
take title to goods only against firm orders, except
that the c o m p a n y m a y maintain inventory of
goods worth u p to $2 million;
(iv) the p r o p o s e d activities of the export trading
company do not include product research or design, product modification, or activities not spe
BANK HOLDING COMPANY, BANK MERGER, AND
BANK SERVICE CORPORATION ORDERS ISSUED
BY THE BOARD OF GOVERNORS
Orders Issued
Under
Company
Act
Section
3 of Bank
Holding
The Commercial Bank of Korea, Ltd.,
Seoul, Korea
Order Approving
Company
Formation
of Bank
Holding
The Commercial Bank of K o r e a , L t d . , Seoul, Korea,
has applied for the B o a r d ' s approval under section
3(a)(1) of the Bank Holding C o m p a n y Act (12 U . S . C .
§ 1842(a)(1)) to b e c o m e a bank holding c o m p a n y by
acquiring all of the voting shares of K o r e a Commercial
Bank of N e w Y o r k , N e w Y o r k , N e w York ( " B a n k " ) ,
a proposed new bank.
Notice of the application, affording the opportunity
for interested p e r s o n s to submit c o m m e n t s and views,
has been given in accordance with section 3(b) of the
Act. The time for filing c o m m e n t s and views has
expired, and the Board has considered the application
and all c o m m e n t s received in light of the factors set
forth in section 3(c) of the Act (12 U . S . C . § 1842(c)).
Applicant, with total assets of $10.5 billion, is the
second largest of five commercial b a n k s engaged in
general banking business in Korea. 1 Applicant has 130
offices in K o r e a , branches in L o n d o n , Singapore, and
Tokyo, and a finance c o m p a n y in H o n g Kong. Commercial B a n k ' s operations in the United States consist
of agencies in N e w York and L o s Angeles and a noninsured branch office in Chicago. 2
1. All banking data are as of December 31, 1982.
2. Applicant's Chicago branch is limited in scope, accepting only
such deposits as are permissible for an Edge Act Corporation.
Applicant has chosen N e w York as its "home state" for purposes of
the International Banking Act of 1978.
36
Federal Reserve Bulletin • January 1984
Bank, a proposed new institution, will provide a full
range of commercial banking services in the Metropolitan New York banking market. 3 Applicant has an
agency in New York, but the agency is relatively small
and, moreover, it is not authorized to accept domestic
deposits. In view of the de novo status of Bank and
based upon the facts in the record, the Board concludes that the proposed transaction will have no
adverse effect on existing or probable future competition, nor will it increase the concentration of resources
in any relevant market. Thus, competitive considerations are consistent with approval of the application.
Section 3(c) of the Act requires in every case that
the Board consider the financial resources of the
applicant organization and the bank to be acquired. In
this case, the Board noted that the primary capital
ratio of Applicant is below the minimum capital guidelines for U.S. multinational bank holding companies.
The Board also noted, however, that Bank is being
established de novo, will initially be small in relation to
Applicant, and will be strongly capitalized. As Bank's
size increases, the Board will expect Applicant to
maintain Bank among the more strongly capitalized
banking organizations of comparable size in the United States. In view of these and other facts of record,
the Board finds that considerations relating to banking
factors are consistent with approval.
In reaching this conclusion, the Board noted that the
application raises the general question of whether the
capital standards applicable to domestic bank holding
companies should also be applied to foreign banking
organizations having, or seeking to acquire, domestic
banking operations. This question presents a number
of complex issues that the Board believes requires
careful consideration and that the Board has under
review.
Applicant has a 9.1 percent interest in Korea Associates Securities, Inc., a company engaged in general
securities business in the United States. While this
interest appears to meet the requirements for the
grandfather privileges under section 8(c) of the International Banking Act of 1978 (the "IBA")(12 U.S.C.
§ 3106(c)), the Board has previously determined that
an otherwise grandfathered foreign banking organization loses that status upon the acquisition of a U.S.
subsidiary bank. 4 Under section 4(a)(2) of the Act and
section 8(e) of the IB A, a company may not retain, for
3. The Metropolitan New York banking market is defined to
include New York City, Nassau, Westchester, Rockland, Putnam,
and western Suffolk Counties in New York; portions of Bergen and
Hudson Counties in New Jersey; and a portion of Fairfield County in
Connecticut.
4 . Midland
Bank
Limited,
733 n. 9 (1981).
6 7 F E D E R A L RESERVE B U L L E T I N
729,
more than two years after becoming a bank holding
company, in excess of 5 percent of the shares of a
company that engages in the business of underwriting,
selling or distributing securities in the United States.
Consistent with this requirement, Applicant has committed to reduce its interest in Korea Associates
Securities, Inc., to less than 5 percent within two years
of consummation of the proposed transaction.
The Board has also determined that considerations
relating to the convenience and needs of the community to be served are consistent with approval. Based on
the foregoing and other facts of record, the Board has
determined that consummation of the transaction
would be consistent with the public interest and that
the application should be and hereby is approved. The
transaction shall not be made 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 pursuant to delegated authority.
By order of the Board of Governors, effective
December 21, 1983.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Teeters, Rice, and Gramley.
JAMES M C A F E E ,
[SEAL]
Associate
Secretary
of the Board
Commercial Bankshares Corp.,
Adrian, Michigan
Order Approving
Acquisition
of a Bank
Commercial Bankshares Corp., Adrian, Michigan, a
bank holding company within the meaning of the Bank
Holding Company Act of 1956, as amended (the
"Act")(12 U.S.C. § 1841 et seq.), has 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 The Jipson-Carter State Bank, Blissfield,
Michigan ( " B a n k " ) .
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the Act.
The time for filing comments and views 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, with one subsidiary bank, controls total
deposits of $102.7 million, representing 0.22 percent of
Legal Developments
total deposits in commercial banks in the state. 1 Bank
controls total deposits of $27.8 million, representing
0.06 percent of total deposits in commercial banks in
the state. Both Applicant and Bank are among the
smaller commercial banking organizations in Michigan. Upon consummation of this proposal, Applicant
would control total deposits of $130.5 million, representing 0.28 percent of total commercial bank deposits
in the state. Applicant's acquisition of Bank would
have no significant adverse effect on the concentration
of banking resources in Michigan.
Applicant and Bank both compete in the Lenawee
County banking market. 2 Applicant is the largest of 11
commercial banking organizations in the market, controlling 22.5 percent of total deposits in commercial
banks in the market. Bank is the seventh largest
commercial banking organization in the market, controlling 6.1 percent of total deposits in commercial
banks in the market. Upon consummation of this
proposal, Applicant will remain the largest commercial
banking organization in the market controlling 28.6
percent of total deposits in commercial banks in the
market.
The Lenawee County banking market is moderately
concentrated, with a four-firm concentration ratio of
65.6 percent and a Herfindahl-Hirschman Index
( " H H I " ) of 1353 points based on deposits in commercial banks in the market. 3 Upon consummation of this
proposal, the four-firm concentration ratio would increase by 6.1 percentage points to 71.7 percent and the
H H I would increase by 275 points to 1628.
The acquisition of the seventh largest banking organization in the market by the largest banking organization in the market could well be cause for denial of an
application, where, after the merger, the applicant
would control 28.6 percent of total deposits in commercial banks in the market, were it not for certain
mitigating circumstances.
The structure of the Lenawee County banking market and competition from thrifts are important mitigating factors. First, upon consummation of this proposal, nine commercial banking alternatives would remain
in the market. Second, in its evaluation in previous
cases of the competitive effects of a proposal, the
Board has indicated that thrift institutions have become, or at least have the potential to become, major
competitors of commercial banks. 4 On this basis, the
Board has accorded substantial weight to the influence
of thrift institutions in its evaluation of the competitive
effects of a proposal. In this case, the increase in
concentration in the market is alleviated by the presence of two savings and loans in the market, one of
which is the largest depository institution in the market, controlling 21.9 percent of total deposits in commercial banks and saving and loans in the market.
Both savings and loans in the banking market offer a
full range of consumer services and transaction accounts. 5 Consequently, while consummation of the
proposal would eliminate some existing competition in
the relevant banking market, the Board has determined that in view of all of the facts of record,
consummation of this proposal would not have a
significant adverse effect on existing competition in
the Lenawee County banking market.
The financial and managerial resources of Applicant
and Bank are considered generally satisfactory, and
their future prospects appear favorable. Applicant has
stated that upon consummation of this proposal, it will
cause Bank to offer new services and products as well
improve its existing services and products. Applicant
will cause Bank to increase its loan and deposit
solicitation program, expand its commercial, agricultural, and mortgage lending programs, and offer credit
cards and revolving lines of credit which are not
currently available at Bank. Affiliation with Applicant
will also allow Bank to offer discount brokerage and
trust services to its customers through Applicant's
subsidiary bank. Further, Applicant proposes to
broaden Bank's current line of checking plans and
types of certificates of deposits. Accordingly, factors
relating to the convenience and needs of the communities to be served lend some weight toward approval
and outweigh any adverse competitive effects that
might result from consummation of this proposal.
Based on the foregoing and other considerations
reflected in the record, the Board has determined that
this proposal should be and hereby is approved. The
4. Comerica
(Bank of the Commonwealth),
B U L L E T I N 7 9 7 ( 1 9 8 3 ) ; General
Bancshares
69 FEDERAL RESERVE
Corporation,
RESERVE BULLETIN 802 (1983); First Tennessee
1. Banking data are as of December 31, 1982.
2. The Lenawee County banking market is approximated by
Lenawee County, Michigan.
3. Under the United States Justice Department Merger Guidelines
(June 14,1982), a market with an HHI between 1000 and 1800 points is
moderately concentrated. The Justice Department Guidelines state
that where a post-merger market HHI is between 1000 and 1800 and
the merger produces an increase in the HHI of 100 points or more, the
Justice Department is more likely than not to challenge such a merger.
37
tion,
6 9 FEDERAL
National
Corpora-
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 ) .
5. If the deposits of the savings and loans were taken into account
in computing market shares, Applicant's market share would be 16.9
percent, Bank's market share would be 4.6 percent, the four-firm
concentration ratio would be 64.3 percent, and the HHI would be
1276. Upon consummation of this proposal, Applicant's market share
would increase by 4.6 percent to 21.5 percent, the four-firm concentration level would increase by 4.6 percent to 68.9 percent, and the
HHI would increase by 155 points to 1431.
38
Federal Reserve Bulletin • January 1984
transaction shall not be consummated before the thirtieth calendar day following the effective date of this
Order nor 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 Chicago, acting pursuant to delegated authority.
By order of the Board of Governors, effective
December 27, 1983.
Voting for this action: Chairman Volcker and Governors
Wallich, Partee, Rice, and Gramley. Absent and not voting:
Governors Martin and Teeters.
WILLIAM W . WILES,
[SEAL]
Secretary
of the Board
Community Bank System, Inc.,
Canton, New York
Order Approving
Company
Formation
of a Bank
Holding
Community Bank System, Inc., Canton, New York,
has applied for the Board's approval under section
3(a)(1) of the Bank Holding Company Act (12 U.S.C.
§ 1842(a)(1)) to become a bank holding company by
acquiring the successors by merger to The St. Lawrence National Bank, Canton, New York ("St. Lawrence Bank"), and The First National Bank of Ovid,
Ovid, New York ("Ovid 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 application and all comments received have been considered
in light of the factors set forth in section 3(c) of the
Act.
Applicant, a nonoperating Delaware corporation,
was organized for the purpose of becoming a bank
holding company by acquiring St. Lawrence Bank and
Ovid Bank, which hold deposits of $191.3 million and
$21.4 million, respectively. 1 Upon acquisition of the
banks, Applicant would control the 33rd and 116th
largest commercial banks in New York that together
hold approximately 0.1 percent of the total deposits in
commercial banks in the state. In the Board's view,
consummation of this proposal would not result in a
significant increase in the concentration of commercial
banking resources in the state.
St. Lawrence Bank operates in five banking markets. Ovid Bank's sole office operates in one of these
markets, the Geneva banking market. 2 St. Lawrence
Bank is the fourth largest commercial banking organization in this market and operates three offices, controlling 15.3 percent of the total deposits in commercial banks in the market. Ovid Bank is the smallest of
five commercial banks in the Geneva banking market,
with 8.8 percent of the total deposits in commercial
banks in the market. Upon consummation of the
proposal, Applicant would become the second largest
commercial banking organization in the market and
would control 24.1 percent of the total deposits in
commercial banks in the market. The Geneva banking
market is highly concentrated, with the four largest
commercial banking organizations controlling 91.3
percent of the total deposits in commercial banks in
the market, and a Herfindahl-Hirschman Index
( " H H I " ) of 2262. 3 Upon consummation of the proposed transaction, the four-firm concentration ratio
would increase to 100 percent and the H H I would
increase by 269 points to 2531. 4
While the competitive effects of the proposed transaction are of concern to the Board, the Board believes
that the anticompetitive effects of the proposal are
mitigated by the role of thrift institutions in the market. The Board has previously indicated that thrift
institutions have become, or at least have the potential
to become, major competitors of commercial banks. 5
In a number of recent cases, the Board has considered
the presence and extent of competition offered by
thrift institutions in the relevant banking market. 6 The
Board believes that thrift institutions exert a considerable competitive influence in the Geneva banking
market inasmuch as they are providers of N O W accounts, other transction accounts, and consumer
loans. In addition, thrift institutions in this market
have the power to and are in fact engaged in the
business of making commercial loans and provide an
alternative for such services for customers in the
Geneva banking market. There are four thrift institutions in the Geneva banking market, which control
$173.3 million in deposits, representing approximately
2. The Geneva banking market is approximated by Seneca County
and a portion of Ontario County in New York.
3. Market data are as of June 30, 1982.
4. Under the Department of Justice Merger Guidelines, a market in
which the post-merger HHI over 1,800 is considered highly concentrated. In such markets, the Department is more likely than not to
challenge a merger that produces an increase in the HHI of 100 points
or more.
5 . Comerica
General
Inc.,
Bancshares
69
F E D E R A L RESERVE B U L L E T I N 7 9 7
Corporation,
802 (1983); First Tennessee National
Corporation,
6 . Sun
Banks
Inc.,
Financial
6 9 F E D E R A L RESERVE B U L L E T I N 9 3 4
Services,
Inc.,
RESERVE B U L L E T I N 8 6 1 ( 1 9 8 1 ) .
(I983);
6 9 F E D E R A L RESERVE B U L L E T I N
867 (1983). United Bank Corporation
69 FEDER/ ' RE-
SERVE B U L L E T I N 2 9 8 ( 1 9 8 3 ) .
Monmouth
1. Data are as of June 30, 1983.
(1983);
6 9 F E D E R A L RESERVE B U L L E T I N
of New
York, 67 FEDERAL
Legal Developments
44.4 percent of the total deposits in the market. In
view of the size and commercial activity of these
institutions in the market, the Board considers the
presence of thrift institutions in the Geneva banking
market as a significant factor in assessing the competitive effects of this transaction. If the deposits held by
thrift institutions in the market are considered, the
four-firm concentration ratio would decline to 53.8
percent and the H H I would be reduced to 1290 points.
Upon consummation of the transaction, Applicant
would become the fifth largest of eight depository
institutions in the market, with 13.4 percent of total
deposits and the H H I would increase by only 83
points.
Consequently, while consummation of the proposal
would eliminate some existing competition in the
relevant banking market, the Board has determined
that in view of all of the facts of record, consummation
of this proposal would not have a significant adverse
effect on existing competition in the Geneva banking
market. 7 Thus, competitive effects are consistent with
approval.
The financial and managerial resources of Applicant, St. Lawrence Bank and Ovid Bank are regarded
as satisfactory and their prospects appear favorable.
Although no new banking services would be introduced to the Geneva banking market as a result of the
proposed transaction, the customers of Ovid Bank
would benefit from the addition of new services,
including a broad range of trust services, data processing and international banking services that are currently being offered by St. Lawrence Bank. Thus, considerations relating to convenience and needs of the
community to be served are consistent with approval.
Based upon the foregoing and all the facts of record, it
is the Board's judgment that consummation of the
transaction would be consistent with the public interest and should be approved.
On the basis of the record and for the reasons
discussed above, the Board has determined that the
application should be, and hereby is, approved. The
transaction shall not be consummated before the thirtieth day following the effective date of this Order or
later than three months after the effective date of this
39
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
December 20, 1983.
Voting for this action: Vice Chairman Martin and Governors Wallich, Partee, Rice, and Gramley. Dissenting from
this action: Governor Teeters. Absent and not voting: Chairman Volcker.
JAMES M C A F E E ,
[SEAL]
Dissenting
Associate
Statement
Secretary
of Governor
of the Board
Teeters
I would deny this application because I believe that
consummation of the proposal would tend substantially to lessen competition in the Geneva market.
After consummation of this proposal, Applicant will
become the second largest commercial banking institution in the market and control 24.1 percent of the total
deposits in commercial banks in the market. The
Geneva banking market is already highly concentrated, and, upon consummation of the proposal, the fourfirm concentration ratio would increase to 100 percent
and the Herfindahl-Hirschman Index would increase
by 269 points, from 2262 to 2531.
In view of these facts, I believe the elimination of a
competitor by placing the market's fourth and fifth
largest commercial banking organizations under common control would have significantly adverse effects
on competition in the Geneva banking market.
December 20, 1983
Corporation for International Agricultural
Production Limited,
Ramat-Gan, Israel
H.S. Holding Company, Ltd.,
Tel Aviv, Israel
S.H. Resources and Development Corporation,
Los Angeles, California
Order Denying Applications
Holding
Companies
7. The Board has also considered the effect of consummation of this
proposal on probable future competition in the four markets where St.
Lawrence Bank, but not Ovid Bank, compete. Because of Ovid
Bank's size, the Board does not consider Ovid Bank to be a probable
future entrant into any of the markets where St. Lawrence Bank
competes. Accordingly, consummation of this proposal would have
no effect on probable future competition in any relevant market.
to Become
Bank
Corporation for International Agricultural Production
Limited, Ramat-Gan, Israel ( " C I A P " ) ; H . S . Holding
Company, Ltd., Tel Aviv, Israel ( " H . S . L t d . " ) ; and,
S.H. Resources and Development Corporation, Los
40
Federal Reserve Bulletin • January 1984
Angeles, California ( " S . H . Resources"), have applied
for the Board's approval under section 3(a)(1) of the
Bank Holding Company Act (12 U.S.C. § 1842(a)(1))
to become bank holding companies by acquiring,
through S.H. Resources, 80 percent of the voting
shares of Empire State Bank of Layton, Layton, Utah.
Notice of the applications, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the Act.
The time for filing comments and views 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.
CIAP and H.S. Ltd. are nonoperating Israeli holding
companies organized for the purpose of owning shares
of S.H. Resources. S.H. Resources is currently a
domestic nonbanking organization with interests in
real estate, a shopping center, and various mining
leases and oil-related partnerships. 1 S.H. Resources
does not own or operate any banking institutions.
Bank, with total assets of $3 million, is among the
smaller commercial banking institutions in Utah. 2
Bank controls approximately $2.3 million in deposits,
representing 0.5 percent of the deposits in commercial
banking institutions in the Ogden, Utah, banking market, making Bank the smallest commercial banking
institution in the relevant banking market. 3
None of the Applicants conducts any banking activities in Utah and none of the principals of the Applicants are affiliated with any other banking organization
in Utah. Thus, consummation of the proposed transaction would not result in any adverse effects upon
competition or in an increase in the concentration of
banking resources in Utah or in any other relevant
area. Accordingly, the Board concludes that competitive considerations are consistent with approval.
The Board has indicated on previous occasions that
a holding company should serve as a source of financial and managerial strength to its subsidiary bank and
that the Board would closely examine the condition of
an applicant in each case with this consideration in
mind.
In this case, the acquisition of Bank would deplete
the cash resources of S.H. Resources and leave it
dependent upon the sale of assets to service its acquisition debt. CIAP and H.S. Ltd. are shell companies
that are not sources of strength to S.H. Resources.
Moreover, CIAP, H . S . Ltd., and the individual Israeli
shareholders of these companies are subject to Israeli
capital export controls that restrict their ability to add
capital to S.H. Resources. Applicants are similarly
restricted by the Israeli capital export controls in their
ability to serve as sources of financial strength to
Bank.
The Board's concern regarding the Applicants' ability to serve as sources of financial strength to Bank is
heightened by Bank's recent overall performance and
other facts of record. Applicants are also without any
previous banking experience and their plans for Bank
appear to be unrealistic. Based on all of the facts of
record, it does not appear likely that Applicants would
serve as sources of strength to Bank, or would have
the financial and managerial resources to meet unforeseen problems that might arise with Bank.
Applicants do not propose to make any significant
changes in Bank's services. Accordingly, convenience
and needs factors are consistent with, but lend no
weight toward, approval of these applications.
On the basis of all of the facts of record, the Board
concludes that the banking considerations involved in
this proposal present adverse factors bearing upon the
financial and managerial resources and future prospects of Applicants and Bank. Such adverse factors
are not outweighed by any procompetitive effects or
by benefits that would result in better serving the
convenience and needs of the community. Accordingly, the Board concludes that approval of these applications would not be in the public interest and the
applications should be denied.
On the basis of the facts of record, the applications
are hereby denied for the reasons summarized above.
By order of the Board of Governors, effective
December 23, 1983.
Voting for this action: Chairman Volcker and Governors
Wallich, Partee, Rice, and Gramley. Absent and not voting:
Governors Martin and Teeters.
JAMES M C A F E E ,
[SEAL]
Associate
of the Board
of Bank
Holding
Harris Bankcorp, Inc.,
Chicago, Illinois
Order Approving Acquisitions
Companies and Banks
1. S.H. Resources has committed to conform its activities to the
requirements of section 4 of the Bank Holding Company Act
(12 U.S.C. § 1843) within two years of obtaining approval to acquire
the shares of bank.
2. All banking data are as of June 30, 1983.
3. The relevant banking market is approximated by the Ogden,
Utah, SMSA.
Secretary
Harris Bankcorp, Inc., Chicago, Illinois, a bank holding company within the meaning of the Bank Holding
Company Act ( " A c t " ) , has applied for approval under
section 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to
acquire The Hinsdale Capital Corporation, Hinsdale,
Legal Developments
Illinois, and its subsidiary, The First National Bank of
Hinsdale, Hinsdale, Illinois ("Hinsdale Bank");
Firstwin Corporation, Winnetka, Illinois, and its subsidiary, The First National Bank of Winnetka, Winnetka, Illinois ("Winnetka Bank"); The Glencoe Capital Corporation, Glencoe, Illinois, and its subsidiary,
Glencoe National Bank, Glencoe, Illinois ("Glencoe
Bank"); and First National Bank of Wilmette, Wilmette, Illinois ("Wilmette Bank").
Notice of the applications, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the Act.
The time for filing comments and views has expired,
and the applications and all comments received have
been considered in light of the factors set forth in
section 3(c) of the Act (12 U.S.C. § 1842(c)).
Applicant controls four banking subsidiaries with
aggregate deposits of approximately $4.7 billion. 1 As a
result of this proposal, Applicant would acquire Hinsdale Bank ($126.1 million in deposits), Winnetka Bank
($99.6 million in deposits), Glencoe Bank ($83.8 million in deposits), and Wilmette Bank ($15.7 million in
deposits). In connection with the applications, the
Secretary of the Board has taken into consideration
the competitive effects of the proposed transactions,
the financial and managerial resources and future
prospects of the companies and banks concerned, and
the convenience and needs of the communities to be
served. Having considered the record of these applications in light of the factors contained in the Act, the
Secretary of the Board has determined that consummation of the transactions would be in the public
interest. On the basis of these considerations, the
applications are approved.
The transactions shall not be consummated before
the thirtieth calendar day following the etfective 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 Chicago, pursuant to delegated authority.
By order of the Secretary of the Board, acting
pursuant to delegated authority for the Board of Governors, effective December 15, 1983.
JAMES M C A F E E ,
[SEAL]
Associate
Independent Bankshares, Inc.,
Abilene, Texas
Order Approving Acquisitions
Companies and Banks
of Bank
Holding
Independent Bankshares, Inc., Abilene, Texas, a bank
holding company within the meaning of the Bank
Holding Company Act ( " A c t " ) (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
Stamford Bancshares, Inc., Fort Worth, Texas, thereby indirectly acquiring Stamford Financial Corporation, Fort Worth, Texas, and its subsidiary, The First
National Bank in Stamford, Stamford, Texas ("Stamford Bank"). Applicant has also applied under section
3 of the Act to acquire the successor by merger of
State Bancshares, Inc., Littlefield, Texas, thereby
indirectly acquiring its subsidiaries, Security State
Bank, Littlefield, Texas ("Littlefield Bank"); Olton
State Bank, Olton, Texas ("Olton Bank"); and West
Texas Bancshares, Inc., Muleshoe, Texas, which controls Muleshoe State Bank, Muleshoe, Texas ("Muleshoe Bank"). 1 As a result of these acquisitions, Applicant will control four additional banks.
Notice of these applications, 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 application and all comments received have been considered
in light of the factors set forth in section 3(c) of the Act
(12 U.S.C. § 1842(c)).
Applicant, the 15th largest banking organization in
Texas, controls four subsidiary banks with aggregate
deposits of $572.7 million, representing 0.48 percent
of total deposits in commercial banks in the state. 2
Stamford Bank, with deposits of $27.9 million, representing 0.02 percent of deposits in commercial banks
in Texas, is the 502nd largest banking organization in
the state. Littlefield Bank, with deposits of $43.6
million, representing 0.03 percent of deposits in commercial banks in the state, ranks 295th among banking
organizations in Texas. Olton Bank, with deposits of
$30.5 million, representing 0.02 percent of deposits in
commercial banks in Texas, is the 460th largest banking organization in the state. Finally, Muleshoe Bank,
Secretary of the Board
1. All banking data are as of September 30, 1983, and also include
Applicant's acquisition of Bank of Naperville, Naperville, Illinois,
approved by Board Order of October 20, 1983.
41
1. The holding company into which State Bancshares will be
merged will exist only as a means to facilitate the acquisition of the
voting shares of the State Bancshares. Accordingly, the proposed
acquisition of shares of the successor organization is treated herein as
the proposed acquisition of shares of State Bancshares.
2. All banking data are as of December 31, 1982 and reflect all
acquisitions and holding company formations as of June 30, 1983. The
data, however, do not reflect Applicant's recent acquisition of the
successor to National Bank of Odessa, Odessa, Texas (assets of $82
million).
42
Federal Reserve Bulletin • January 1984
with deposits of $34.9 million, representing 0.03 percent of deposits in commercial banks in Texas, ranks
402nd among banking organizations statewide. Upon
consummation of the proposed transaction, Applicant
will become the 14th largest commercial banking organization in the state controlling deposits of $709.6
million, representing 0.58 percent of total deposits in
commercial banks statewide. Based on the record, the
Board concludes that consummation of this proposal
will have no significant effects upon the concentration
of banking resources in Texas.
Applicant's subsidiary banks operate in the Abilene
banking market and the Odessa banking markets.
None of the four banks Applicant proposes to acquire
operates in the Abilene or Odessa banking markets,
and each is located in a rural market that is a separate
and distinct banking market from each of the others. 3
Accordingly, consummation of this transaction will
not eliminate any existing competition between Applicant's subsidiary bank and any of the banks to be
acquired.
The Board has also considered the effect of this
transaction on probable future competition in the four
markets in which the banks to be acquired operate in
light of the Board's proposed guidelines for determining whether an intensive examination of a proposed
market extension merger or acquisition is warranted. 4
None of the four markets meets the criteria in the
Board's guidelines for considering a market attractive
for de novo entry, since none is located in an SMSA
and each market has total deposits of less than $250
million. Accordingly, the Board concludes that an
intensive review of the effects of the proposed transaction on probable future competition is not warranted,
and that consummation of this proposal would not
have any significant adverse effects pn probable future
competition in any relevant market.
The financial and managerial resources of Applicant, its subsidiaries, and each of the banking organizations to be acquired are considered generally satisfactory. In view of certain financial commitments
made by Applicant in connection with the proposed
transactions, the future prospects of Applicant, its
3. Stamford Bank's market is defined as northern Jones and
southern Haskell Counties, Texas; Littlefield Bank's market is southern Lamb County plus Anton in Hockley County, Texas; Olton
Bank's market is northern Lamb County, Texas; and Muleshoe
Bank's market is Bailey County, Texas.
4. "Proposed 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). Although the proposed policy statement has not been adopted by the Board, the Board is using the policy
guidelines in its analysis of the effects of a proposal on probable future
competition.
subsidiaries and the banking organizations to be acquired are favorable. Affiliation with Applicant will
provide the banks to be acquired with greater opportunity to meet the credit needs of both small and large
customers. Accordingly, factors relating to the convenience and needs of the communities to be served are
consistent with approval of the applications.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be
and are hereby approved. The proposed acquisitions
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 periods are extended for good
cause by the Board or the Federal Reserve Bank of
Dallas, acting pursuant to delegated authority.
By order of the Board of Governors, effective
December 19, 1983.
Voting for this action: Vice Chairman Martin and Governors Wallich, Partee, Teeters, Rice, and Gramley. Absent
and not voting: Chairman Volcker.
JAMES M C A F E E ,
[SEAL]
Associate
Secretary
of the Board
IVB Financial Corporation,
Philadelphia, Pennsylvania
Order Approving
Company
Formation
of a Bank
Holding
IVB Financial Corporation, Philadelphia, Pennsylvania, has applied for Board approval under section
3(a)(1) of the Bank Holding Company Act (12 U.S.C.
§ 1842(a)(1)) to become a bank holding company by
acquiring shares of 1700 Bank, Jenkintown, Pennsylvania, and for Board approval under section 18(c) of
the Federal Deposit Insurance Act (12 U.S.C.
§ 1828(c)) to effect a merger between 1700 Bank and
Industrial Valley Bank and Trust Company, Philadelphia, Pennsylvania ( " B a n k " ) .
Notice of the applications, affording interested persons an opportunity to submit comments, has been
given in accordance with section 3(b) of the Bank
Holding Company Act. 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 section 3(c) of the Bank Holding Company
Act, and section 18(c)(5) of the Federal Deposit Insurance Act.
Applicant is a nonoperating corporation that was
organized for the purpose of acquiring Bank. Bank is
the 13th largest commercial banking organization in
Pennsylvania, with $1.4 billion in deposits, represent-
Legal Developments
ing 1.9 percent of the deposits held by commercial
banking organizations in the state. 1
Bank is the seventh largest commercial banking
organization in both the Philadelphia banking m a r k e t 2
and the Allentown-Bethlehem-Easton banking market, 3 with respective market shares of 5.8 percent and
3.5 percent of the deposits held by commercial banking organizations in those two markets. Neither Applicant nor its principals control another banking institution or conduct banking business in the same banking
markets as Bank. Thus, consummation of the proposed transaction would have no adverse effects on
either existing or potential competition in any relevant
market and would not increase the concentration of
resources in any relevant area. Accordingly, the Board
has concluded that competitive considerations are
consistent with approval of the applications.
The financial and managerial resources of Applicant
and Bank are satisfactory, and their future prospects
appear favorable, especially in light of commitments
and undertakings made by Applicant. Based on the
record, including the commitments and undertakings
made by Applicant, the Board has determined that
considerations relating to banking factors are consistent with approval. Considerations relating to the convenience and needs of the communities to be served
are also consistent with approval. Thus, the Board has
determined that consummation of the transaction
would be consistent with the public interest and that
the applications should be approved.
Accordingly, on the basis of the record and for the
reasons summarized above, the applications hereby
are approved The transaction should not be consummated before the thirtieth 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 Philadelphia under delegated
authority.
By order of the Board of Governors, effective
November 14, 1983.
43
Korea First Bank,
Seoul, Korea
Order Approving
Company
Formation
of Bank
Holding
Korea First Bank, Seoul, Korea, has applied for
the Board's approval under section 3(a)(1) of the
Bank Holding Company Act ( " t h e A c t " ) (12 U.S.C.
§ 1842(a)(1)) to become a bank holding company by
acquiring all of the voting shares of Korea First Bank
of New York, New York ( " B a n k " ) , a de novo bank.
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the Act.
The time for filing comments and views 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, with total assets of approximately $8.9
billion, is the fourth largest commercial banking institution in South Korea, operating 126 offices throughout South Korea. 1 Applicant also operates branches in
Japan and England; representative offices in Japan,
Singapore, West Germany, Hong Kong, and Australia; and a finance company in Hong Kong. In the
United States, Applicant operates a branch in Chicago, Illinois, and agencies in New York City and Los
Angeles, California. Although the International Banking Act of 1978 ( " I B A " ) (12 U.S.C. § 3101 et seq.)
generally prohibits a foreign bank from operating
branches in more than one state, the Chicago branch
of Applicant is permitted under section 5(b) of the IBA
because it was opened before July 27, 1978. Applicant
has selected New York as its home state under the
Board's Regulation K (12 C.F.R. § 211.22(b)). Accordingly, the Board concludes that the acquisition of Bank
by Applicant is also consistent with Section 5 of the
IBA (12 U.S.C. § 3103).
of the Board
Bank, a de novo institution, will provide a full range
of commercial banking services in the Metropolitan
New York banking market. 2 Applicant operates an
agency in N e w York, but the agency is relatively small
and, moreover, it is not authorized to accept domestic
deposits. In view of the de novo status of Bank and
based upon the facts in the record, the Board concludes that the proposed transaction will have no
1. Bank deposit data are as of December 31, 1982; market share
data are as of June 30, 1981.
2. The Philadelphia banking market is approximated by the Philadelphia SMSA.
3. The Allentown-Bethlehem-Easton banking market is approximated by the Allentown-Bethlehem-Easton SMSA.
1. All bamdng data are as of December 31, 1982.
2. The Metropolitan New York banking market is defined to
include New York City; Nassau, Westchester, Rockland, Putnam,
and western Suffolk Counties in New York; portions of Bergen and
Hudson Counties in New Jersey; and a portion of Fairfield County in
Connecticut.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Teeters, Rice, and Gramley.
JAMES M C A F E E ,
[SEAL]
Associate
Secretary
44
Federal Reserve Bulletin • January 1984
adverse effects on existing or probable future competition, and will not increase the concentration of resources in any relevant market. Thus, competitive
considerations are consistent with approval of the
application.
Section 3(c) of the Act requires in every case that
the Board consider the financial resources of the
applicant organization and the bank to be acquired. In
this case, the Board noted that the primary capital
ratio of Applicant is below the minimum capital guidelines for U.S. multinational bank holding companies.
The Board also noted, however, that Bank is being
established de novo, will initially be small in relation to
Applicant and will be strongly capitalized. As Bank's
size increases, the Board will expect Applicant to
maintain Bank among the more strongly capitalized
banking organizations of comparable size in the United States. In view of these and other facts of record,
the Board finds that considerations relating to banking
factors are consistent with approval.
In reaching this conclusion, the Board noted that the
application raises the general question of whether the
capital standards applicable to domestic bank holding
companies should also be applied to foreign banking
organizations having, or seeking to acquire, domestic
banking operations. This question presents a number
of complex issues that the Board believes requires
careful consideration and that the Board has under
review.
Applicant owns 9.1 percent of the voting shares of
Korea Associates Securities, Inc., a company engaged
in the general securities business in the United States.
While this investment appears to meet the requirements for the grandfather privileges under section 8(c)
of the IBA (12 U.S.C. § 3106(c)), the Board has
previously determined that an otherwise grandfathered foreign banking organization loses that status
upon the acquisition of a U.S. subsidiary bank. 3 Under section 4(a)(2) of the Act and section 8(e) of the
IBA, a company may not retain, for more than two
years after becoming a bank holding company, shares
representing in excess of 5 percent of the shares of a
company that engages in the business of underwriting,
selling or distributing securities in the United States.
Consistent with this requirement, Applicant has committed to reduce its interest in Korea Associates
Securities, Inc., to 5 percent or less within two years
of consummation of the proposed transaction.
The Board has also determined that considerations
relating to the convenience and needs of the community to be served are consistent with approval. Based on
the foregoing and other facts of record, the Board has
3 . Midland
Bank
Limited,
733 n. 9 (1981).
6 7 F E D E R A L RESERVE B U L L E T I N
729,
determined that consummation of the transaction
would be consistent with the public interest. Accordingly, the Board has determined that the application
should be and hereby is approved. The transaction
shall not be made 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
pursuant to delegated authority.
By order of the Board of Governors, effective
December 21, 1983.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Teeters, Rice, and Gramley.
JAMES M C A F E E ,
[SEAL]
Associate
Secretary
of the Board
KSAD, Inc.,
Council Bluffs, Iowa
Order Approving
Company
Formation
of a Bank
Holding
KSAD, Inc., Council Bluffs, Iowa, has applied for the
Board's approval under section 3(a)(1) of the Bank
Holding Company Act (12 U.S.C. § 1842(a)(1)), to
become a bank holding company by acquiring at least
80 percent of the voting shares of First National Bank
of Council Bluffs, Council Bluffs, Iowa ( " B a n k " ) . As
part of the transaction, K S A D plans to sell its nonvoting common stock, equivalent to about 27.2 percent of
its total equity, to Omaha National Corporation, Omaha, Nebraska ( " O N C " ) , a Nebraska bank holding
company. The nonvoting stock has no contingent
voting rights and is not convertible into voting stock.
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the Act.
The time for filing comments and views has expired,
and the Board has considered the application and all
comments received, including those from the Iowa
Superintendent of Banking, in light of the factors set
forth in section 3(c) of the Act. The Superintendent
urges the Board to disapprove this application on the
grounds that:
1) O N C ' s nonvoting equity investment in K S A D
would violate the interstate banking prohibition of
section 3(d) of the BHC Act (the Douglas Amendment); and,
2) Iowa law actually prohibits interstate investments
of this kind.
Legal Developments
The Board has carefully considered the issues raised
by the Superintendent concerning the permissibility of
O N C ' s investment in KSAD, 1 and, based upon the
record in this case, the Board concludes that O N C ' s
investment is not barred by either state or federal law.
The Douglas Amendment provides that no "application" under section 3 of the BHC Act shall be approved that would permit a bank holding company to
acquire any voting securities, interest in, or all or
substantially all of the assets of a bank located in
another state. The Board has interpreted the Douglas
Amendment to prohibit those interstate investments in
banks that are of such significance as to require an
application under the BHC Act; that is, where the
investment would constitute the acquisition of voting
shares or " c o n t r o l " of a bank under the BHC Act.
The Superintendent takes the position that, because
KSAD's "application" is pending before the Board,
an investment by any out-of-state bank holding company in K S A D would be prohibited by the Douglas
Amendment, regardless of the extent or nature of the
investment. This interpretation of the Douglas Amendment would prohibit an interstate nonvoting equity
investment proposed in conjunction with an application pending before the Board, while permitting the
identical investment in a bank or bank holding company proposed independently of a bank holding company
application and perhaps consummated shortly thereafter. It is the Board's view, based on the language and
legislative history of the Act, that unless O N C ' s
investment in K S A D would require an application
under section 3 of the BHC Act, the Douglas Amendment would not bar the investment.
Based on the facts and circumstances in this case,
the Board concludes that ONC is not required to file
for the Board's prior approval under section 3 of the
Act to acquire the nonvoting common stock of KSAD.
The B H C Act requires a bank holding company to
obtain the Board's prior approval before acquiring
more than 5 percent of the voting shares of a bank or
control of the bank. 2 (12 U.S.C. § 1842(a)). As indicated, ONC is not acquiring directly or indirectly more
than 5 percent of K S A D ' s or Bank's voting shares,
and there is no evidence that ONC would control in
1. Under Whitney National Bank in Jefferson Parish v. Bank of
New Orleans Trust Company, 379 U.S. 411 (1965), the Board is
prohibited from approving an application by a bank holding company
if consummation of the proposal contemplated by such application
would be prohibited by a valid state law.
2. The Act defines control as the ownership of 25 percent or more
of the voting securities of a bank, control over the election of a
majority of its directors or the power to exercise a controlling
influence over the management or policies of the bank. (12 U.S.C.
§ 1841(a)(2)).
45
any manner the election of a majority of K S A D ' s or
Bank's board of directors. 3 Moreover, O N C ' s nonvoting common stock investment in K S A D is not convertible into voting stock, represents only slightly over
(only 27.2) 25 percent of K S A D ' s total equity capital,
and does not limit in any manner K S A D ' s or Bank's
management or policies. Thus, O N C ' s proposed investment in K S A D is consistent with the guidelines in
the Board's policy statement on nonvoting equity
investments by bank holding companies in out-of-state
banks and Board decisions thereunder. (See, 68 FEDERAL R E S E R V E B U L L E T I N 4 1 3 ( 1 9 8 2 ) ) .
The Superintendent, however, has raised a number
of factual circumstances which, in his view, indicate
that ONC would exercise a controlling influence over
the management or policies of K S A D and thus would
control K S A D under the BHC Act. 4 Among these are
the facts that: the father of Applicant's four owner/
shareholders is a director and the second largest
shareholder of O N C , controlling 7.34 percent of
O N C ' s stock; a team of lenders from ONB assisted
Bank in revising its lending policies in 1982 on a onetime one-fee basis; a trust relationship exists between
ONB and each of K S A D ' s four owners; the owners
have lines of credit with ONB; O N B and Bank are
correspondents; and Bank employs an individual previously employed by ONB.
The Board is of the view that none of these factors,
when considered separately or together, are of sufficient weight in the circumstances of this case to
establish the existence of a controlling influence under
the BHC Act. There is no evidence that the owners of
KSAD, or their father, are acting in any manner as
agents for, or on behalf of, ONC in their acquisition of
K S A D or that they were asked by O N C to make this
investment. Further, there are no director interlocks
between O N C and KSAD, and a family relationship
does not by itself provide evidence of control. Indeed,
none of K S A D ' s owners is an officer or director of
KSAD. Further, the one-time consulting contract between employees of O N B and Bank does not indicate
that ONB "exercises significant influence with respect
3. During the processing of this application, ONC purchased nonvoting preferred stock of Bank for $2.4 million, and 4.9 percent of
Bank's voting common stock, for a total capital contribution of $2.8
million. Upon consummation of this proposal, ONC will exchange its
shares of Bank for the shares of KSAD's nonvoting, nonconvertible
common stock, equivalent to 27.2 percent of KSAD's total equity.
4. In addition, the Superintendent has requested a formal hearing
so that the Board can make a controlling influence determination.
However, the Board is not required by the BHC Act or Regulation Y
to hold a hearing when there are no factual issues in dispute and it has
determined not to issue a preliminary determination of control. (Cf. 12
C.F.R. § 225.2(c)).
46
Federal Reserve Bulletin • January 1984
to the general management or overall operations. . . "
of Bank, as would be required to trigger the rebuttable
presumption of control in § 225.2(b)(3) of Regulation Y
(12 C.F.R. § 225.2(b)(3)).
Accordingly, based on the above and other facts of
record, including O N C ' s commitment not to exercise
control over K S A D or Bank, the Board concludes that
none of the relationships discussed above demonstrate
that O N C would exercise control or a controlling
influence over K S A D or Bank under the BHC Act, so
as to require O N C to apply to the Board under the
B H C Act to acquire a nonvoting interest in KSAD.
Because O N C ' s proposed investment in KSAD would
not require a separate application under the BHC Act,
it is the Board's determination that the Douglas
Amendment does not bar O N C ' s investment.
In addition to his challenge to the application under
the Douglas Amendment, the Superintendent asserts
that section 524.1805 of the Iowa state code prohibits
bank holding companies located outside of Iowa from
acquiring " a n y interest i n " an Iowa bank, even where
that interest would not be prohibited by the Douglas
Amendment. 5 Under this interpretation, the Iowa statute would prohibit any nonvoting equity investment in
an Iowa banking organization by an out-of-state bank
holding company, either in the form of preferred stock
or nonvoting common stock, no matter how small the
investment and regardless of whether or not the holding company was acquiring any voting shares or
" c o n t r o l " of the Iowa bank.
The Board has considered the Superintendent's
arguments concerning the permissibility under Iowa
law of O N C ' s proposed investment in KSAD, and has
concluded that Iowa law does not prohibit a bank
holding company from making an equity investment in
an Iowa bank, which does not involve the acquisition
of 5 percent or more of the voting shares of or control
of an Iowa banking organization. Moreover, it is
doubtful that a state has the authority to impose a
more stringent burden on interstate commerce than
that contained in the Douglas Amendment. 6
5. Section 524.1805 provides: "Nothing in this division shall be
construed to authorize a bank holding company which is with respect
to the state of Iowa an 'out-of-state bank holding company' as defined
or referred to in 12 U.S.C. § 1842(d), as amended to January 1, 1971,
to acquire any of the voting shares of, any interest in, all or
substantially all of the assets of, or power to control in any manner the
election of any of the directors of any bank in this state, unless such
bank holding company was on January 1, 1971, registered with the
Federal Reserve Board as a bank holding company, and on that date
owned at least two banks in this state."
6. See, Lewis v. B.T. Investment Managers, Inc., 447 U.S. 27
(1980).
KSAD, a nonoperating corporation with no subsidiaries, was organized under the laws of Iowa for the
purpose of becoming a bank holding company by
acquiring Bank, which controls deposits of approximately $95.4 million. 7 Upon acquisition of Bank,
KSAD would control the 28th largest of 550 commercial banking organizations in Iowa and approximately
0.4 percent of the total deposits in commercial banks
in the state. Consummation of this proposal would
have no significant effects on the concentration of
banking resources in Iowa.
Bank is the fifth largest of 36 banking organizations
in the relevant banking market, 8 and holds 3.1 percent
of the total deposits in commercial banks in the
market. Neither Applicant nor any of its principals is
affiliated with any other banking organization in the
market and, therefore, consummation of the proposal
would not result in any adverse effects upon competition in any relevant area. Accordingly, the Board
concludes that competitive considerations are consistent with approval of the application.
The financial and managerial resources of KSAD
and Bank are regarded as generally satisfactory, particularly in view of the fact that KSAD will incur no
debt in this proposal, and a capital injection will be
made into Bank as a result of this transaction. In
addition, Bank's future prospects have improved since
Bank was acquired by K S A D ' s principals in 1982.
Thus, considerations relating to banking factors are
consistent with approval of the application. Although
KSAD does not anticipate any immediate changes in
the services offered by Bank, considerations relating
to the convenience and needs of the community to be
served are consistent with approval of the application.
Accordingly, the Board has determined that consummation of the transaction would be consistent with 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
7. All banking data are as of December 31, 1982.
£ The relevant banking market is approximated by the OmahaCouncil Bluffs RMA and contiguous areas east of the Elkhorn River in
Douglas County, Nebraska, and all but the eastern two tiers of
townships in Pottawattamie County, Iowa.
Legal Developments
this Order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
Chicago, acting pursuant to delegated authority.
By order of the Board of Governors, effective
November 8, 1983.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Teeters, Rice, and Gramley. Absent and not
voting: Governor Wallich.
JAMES M C A F E E ,
[SEAL]
Associate
Secretary
of the Board
New Mexico Bank Holding Company,
Ruidoso, New Mexico
Order Approving
Company
Formation
of a Bank
Holding
New Mexico Bank Holding Company, Ruidoso, New
Mexico, has applied for the Board's approval, pursuant to section 3(a)(1) of the Bank Holding Company
Act ( " A c t " ) (12 U.S.C. § 1842(a)(1)), to become a
bank holding company by acquiring all of the voting
shares of Security Bank, Ruidoso, New Mexico
("Bank").
Notice of the application, affording an opportunity
for interested persons to submit comments and views,
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, a nonoperating corporation with no subsidiaries, was organized for the purpose of becoming a
bank holding company by acquiring Bank, which holds
total deposits of $16.5 million. 1 Upon consummation
of this proposal, Applicant would control the 57th
largest banking organization in New Mexico and approximately .24 percent of total deposits in commercial banks in the state. Consummation of this proposal
would not result in any increase in the concentration of
banking resources in New Mexico.
Bank is the second largest of three banking organizations in the Lincoln County banking market, 2 and
controls 18.6 percent of total deposits in commercial
banks in the market. Consummation of this proposal
would not result in any significant adverse effects upon
competition, either existing or potential, or increase
1. Banking data are as of December 31, 1982.
2. The Lincoln County banking market is defined as Lincoln
County, New Mexico.
47
the concentration of banking resources in any relevant
area.
This proposal represents a change of ownership of
Bank. In approving this application, the Board noted
that in recent years Bank's loan loss experience increased and its earnings declined markedly. Accordingly, the Board took into consideration Applicant's
plan to reduce substantially Bank's loan losses and
operating expenses and improve Bank's earnings upon
consummation of the proposal. Applicant's principals
have demonstrated a satisfactory history of managerial
performance that suggests Bank's overall performance
will improve under their ownership. Also, Applicant
has committed to inject $400 thousand of new equity
capital into Bank upon consummation of this proposal.
On balance, the financial and managerial resources of
Applicant and Bank are considered to be consistent
with approval and their future prospects appear favorable.
Although Applicant has proposed no new services
or activities for Bank, there is no evidence in the
record that the banking needs of the community to be
served are not being met.
Based on the foregoing and other facts of record,
including certain commitments made by Applicant to
the Board, the Board has determined that this application should be and hereby is approved. This 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 the Federal Reserve Bank of
Dallas, acting pursuant to delegated authority.
By order of the Board of Governors, effective
December 8, 1983.
Voting for this action: Vice Chairman Martin and Governors Wallich, Partee, and Gramley. Voting against this action: Governor Rice. Absent and not voting: Chairman
Volcker and Governor Teeters.
WILLIAM W . WILES,
[SEAL]
Dissenting
Secretary
Statement
of Governor
of the Board
Rice
I would deny the application of New Mexico Bank
Holding Company, Ruidoso, New Mexico, to become
a bank holding company by acquiring Security Bank,
Ruidoso, New Mexico ( " B a n k " ) . The Board has
previously indicated that a bank holding company
should serve as a source of financial and managerial
strength to its subsidiary bank and that the Board
48
Federal Reserve Bulletin • January 1984
would closely examine the condition of an applicant in
each case with this consideration in mind. 1
The Board has also cautioned against the assumption of substantial amounts of debt in a bank holding
company formation because of concern that the bank
holding company would no longer have the financial
flexibility to meet unexpected problems of its subsidiary bank or would be forced to place substantial
demands on its subsidiary bank to meet its debt
servicing requirements. 2
In connection with this proposal, Applicant would
incur a sizeable debt. Bank is Applicant's only asset
and sole source of income to service its debt. Based on
its recent earnings record, Bank would be unable to
service Applicant's debt and maintain adequate capital. 3 Applicant has submitted to the Board an operating plan to reduce the expenses and increase the return
on assets of Bank, which would be implemented upon
consummation of this proposal. The success of this
operating plan in improving Bank's earnings is uncertain, particularly in the face of strong competition from
local banks.
In view of this uncertainty, I believe that the Board
has placed too much weight on the prospective improvement of Bank's earnings. In my view, it is
imprudent to permit so much debt in a bank holding
company when the servicing of that debt is uncertain.
Had Applicant been capitalized more conservatively,
with less debt and more equity, my difficulties with
this proposal could have been overcome. Accordingly,
I believe that considerations relating to financial and
managerial factors required to be considered under the
Bank Holding Company Act warrant denial of this
application.
December 8, 1983
One Valley Bancorp of West Virginia, Inc.,
Charleston, West Virginia
The Bank of St. Albans,
St. Albans, West Virginia
Order Approving
Acquisition
and Merger of Banks
company within the meaning of the Bank Holding
Company Act of 1956, as amended (12 U.S.C. § 1841
et seq.)("BHC A c t " ) , has applied for the Board's
approval under section 3(a)(3) of the BHC Act
(12 U.S.C. § 1842(a)(3)) to acquire all of the voting
shares of Citizens National Bank of Martinsburg,
Martinsburg, West Virginia ("Citizens Bank"), and
The Bank of St. Albans, St. Albans, West Virginia
("St. Albans Bank"). In addition, St. Albans Bank has
applied for the Board's approval under the Bank
Merger Act ("BMA")(12 U.S.C. § 1828(c)) to merge
with Kanalban Bank Co., St. Albans, West Virginia
( " B a n k " ) , an interim bank formed for the sole purpose
of effecting One Valley's acquisition of St. Albans
Bank. 1
Notice of the applications, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the B H C
Act and the BMA. As required by the BMA, reports of
the competitive effects of the merger were requested
from the United States Attorney General, the Comptroller of the Currency and the Federal Deposit Insurance Corporation. The time for filing comments and
views has expired, and the Board has considered the
applications and all comments received in light of
the factors set forth in section 3(c) of the BHC Act
(12 U.S.C. § 1842(c)) and under the BMA (12 U.S.C.
§ 1828(c)(5)).
One Valley, the largest banking organization in
West Virginia, controls four banks with aggregate
deposits of $495.1 million, representing approximately
five percent of total commercial bank deposits in the
state. St. Albans Bank, with deposits of $86.7 million,
is the 26th largest commercial bank in West Virginia,
holding approximately 0.9 percent of commercial bank
deposits in the state. Citizens Bank, with deposits of
$52.9 million, is the 51st largest commercial bank in
West Virginia, holding approximately 0.5 percent of
commercial bank deposits in the state. Upon consummation of the proposed transactions, One Valley
would remain the largest commercial banking organization in the state and control 6.4 percent of the total
deposits in the state. 2 Acquisition of St. Albans Bank
and Citizens Bank would have no significant effect
upon the concentration of banking resources in West
Virginia.
One Valley Bancorp of West Virginia, Inc., Charleston, West Virginia ( " O n e Valley"), a bank holding
1. Cambridge
Financial Corporation,
LETIN 7 9 6 ( 1 9 8 3 ) ; Holcomb
Bancshares,
69 FEDERAL RESERVE BULInc.,
6 9 F E D E R A L RESERVE
BULLETIN 8 0 4 (1983).
2. Id.
3. Federal Reserve Board Policy Statement for Assessing Financial
Factors In the Formation of Small One-Bank Holding Companies," 66
FEDERAL RESERVE BULLETIN 320 (1980); Federal Reserve Regulatory
Service 1111 4-855 and 4-856.
1. The surviving bank will operate under the charter and name of
St. Albans Bank.
2. Except as otherwise noted, banking data are as of December 31,
1982.
Legal Developments
St. Albans Bank, with market deposits of $84.5
million, is the sixth largest bank in the KanawhaPutnam Counties banking market, controlling 5.4 percent of commercial bank deposits in the market. 3 Two
of One Valley's four bank subsidiaries, Kanawha
Valley Bank, N . A . , and One Valley National Bank of
Kanawha City, a newly chartered bank, operate in this
market. 4 One Valley, with $333.1 million in market
deposits, is the largest of 23 commercial banking
organizations in the market, controlling 21.1 percent of
total deposits in commercial banks in the market. The
offices of One Valley's lead bank are approximately 13
miles from St. Albans Bank.
Upon consummation of the proposal, One Valley
will control 26.5 percent of the commercial bank
deposits in the market. The relevant banking market is
moderately concentrated, with a four-firm concentration ratio of 58.7 percent and a Herfindahl-Hirschman
Index ( " H H I " ) equal to 1150. Following consummation of the proposed transactions, the four-firm concentration ratio would increase to 64.1 percent and the
H H I would increase by 228 points to 1378. In reviewing the effect of this proposal on competition, the
Board has considered the fact that the relevant banking market is only moderately concentrated and will
remain only moderately concentrated upon consummation of the proposed acquisition of St. Albans Bank.
Moreover, in view of the significant expansion of
the commercial lending powers of federal thrift institutions authorized in the Garn-St Germain Depository
Institutions Act of 1982, the Board has, in a number of
recent cases, considered the presence and extent of
competition of thrift institutions in the relevant banking market as a mitigating factor. 5 There are six thrift
institutions in the relevant banking market, the largest
of which holds deposits of $106.1 million and has five
market-area offices. Together, the thrift institutions
control $232.8 million in deposits, representing approximately 12.7 percent of the total deposits in thrift
institutions and commercial banks in the KanawhaPutnam Counties banking market. The thrift institutions are aggressively marketing N O W accounts and
similar instruments and are active in making commercial loans. As of June 1982, thrifts held 18.5 percent of
3. The relevant banking market is defined as Kanawha County and
Putnam County, West Virginia, which includes nearly all of the
Charleston Ranally Metro Area (RMA). Banking data for the Kanawha-Putnam Counties banking market are as of June 30, 1982.
4. On September 26, 1983, the Federal Reserve Bank of Richmond
approved One Valley's proposal to acquire this bank.
5. See, e.g., Barnett Banks of Florida, 69 FEDERAL RESERVE
BULLETIN 44 (1983); First Tennessee National Corporaton, 69 FEDERAL RESERVE
BULLETIN
298
( 1 9 8 3 ) ; Midlantic
FEDERAL RESERVE B U L L E T I N 6 5 2 ( 1 9 8 3 ) .
Banks,
Inc.,
69
49
the commercial loans, including commercial real estate loans, in the market. On the basis of these facts,
the Board considers the presence of thrift institutions
in the relevant banking market a significant mitigating
factor in assessing the competitive effects of this
transaction. 6
Although consummation of the proposal would eliminate some existing competition in the relevant banking market, the Board has determined that, in view of
all of the facts of record, consummation of this proposal would not have a significant adverse effect on
existing competition in the Kanawha-Putnam Counties
banking market.
Citizens Bank is the second largest commercial bank
located in the Martinsburg banking market and holds
approximately 15.2 percent of commercial bank deposits in that market. 7 Applicant currently does not
operate in the Martinsburg market, and Citizens Bank
is nearly 300 miles distant from Applicant's nearest
banking subsidiary. The proposed acquisition, therefore, would not eliminate any existing competition.
The transactions also would not have any significant
adverse effects upon potential competition because the
Martinsburg banking market is not highly concentrated.
The financial and managerial resources of One Valley, its subsidiaries, Citizens Bank, and St. Albans
Bank are regarded as generally satisfactory and their
future prospects appear favorable, especially in light
of certain capital commitments made by One Valley.
As a result of the proposed transactions, the customers of St. Albans Bank and Citizens Bank would
benefit from the addition of new services, including
trust services, expanded credit programs and availability, and automated teller machines. Thus, considerations relating to convenience and needs of the community to be served are consistent with approval of the
applications.
On the basis of the record and for the reasons
discussed above, the Board has determined that the
applications under the BHC Act and the BMA should
be, and hereby are, approved. The transactions shall
not be consummated before the thirtieth day following
6. If the presence of thrift institutions in the market were given full
weight, the post-acquisition HHI would be reduced to 1093 points.
Upon consummation of the transaction, the HHI would increase by
173 points. Applicant would be the largest depository institution in the
market with 18.4 percent of market deposits, and upon consummation
of the transaction, would hold 23.1 percent of market deposits. The
four-firm concentration ratio would be 51.3 percent, pre-acquisition,
and 56 percent, post-acquisition.
7. Both of Citizens Bank's offices are located in the Martinsburg
market, which includes Berkeley County and Jefferson County.
50
Federal Reserve Bulletin • January 1984
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 Richmond, pursuant
to delegated authority.
By order of the Board of Governors, effective
December 12, 1983.
Voting for this action: Vice Chairman Martin and Governors Partee, Rice, and Gramley. Absent and not voting:
Chairman Volcker and Governors Wallich and Teeters.
WILLIAM W . WILES,
[SEAL]
Secretary
of the Board
Orders Issued Under Section 4 of Bank Holding
Company Act
Fuji Bank, Limited,
Tokyo, Japan
Order Approving Acquisition of Walter E. Heller
and Company and Commencement
of Various
Nonbanking
Activities
Fuji Bank, Limited, Tokyo, Japan, a registered bank
holding company within the meaning of the Bank
Holding Company Act ( " B H C Act") (12 U.S.C.
§ 1841 et seq.), has applied for the Board's approval
under section 4(c)(8) of the BHC Act (12 U.S.C.
§ 1843(c)(8)) to acquire voting shares of Walter E.
Heller and Company, Chicago, Illinois ( " C o m p a n y " ) ,
a wholly-owned subsidiary of Walter E. Heller International Corporation, Chicago, Illinois, and through
Company to engage, to the same extent and subject to
the same conditions, in the activities conducted by
Company. Company engages primarily in the business
of commercial finance, factoring, commercial real
estate finance and servicing, and leasing activities, and
also engages to a more limited extent in commercial
loan servicing, real estate appraisal and investment
advisory activities, and credit-related insurance agency activities. These activities have been determined by
the Board to be closely related to banking and thus
permissible for banking holding companies. (12 C.F.R.
§§ 225.4(a)(1), (3), (5), (6), (9), and (14)). Applicant has
also applied for the Board's approval under section
4(c)(8) of the BHC Act to engage in arranging equity
financing for certain types of income-producing properties. While this activity has not been specified by the
Board in Regulation Y as permissible for bank holding
companies, the Board has previously determined by
order that arranging equity financing for certain types
of income-producing properties, subject to certain
conditions, is closely related to banking. 1 Moreover,
the Board has by order approved an application by
Walter E. Heller International Corporation to engage
in this activity subject to certain conditions. 2
Notice of the applications, affording opportunity for
interested persons to submit comments and views, has
been duly published in the Federal Register.3 The time
for filing comments and views has expired, and the
Board has considered the application and all comments received in light of the factors set forth in
section 4(c)(8) of the B H C Act.
Applicant, with consolidated assets of approximately $99.8 billion, is the second largest commercial
banking institution in Japan and the thirteenth largest
commercial banking institution in the world. 4 Applicant is a registered bank holding company by virtue of
its ownership of The Fuji Bank and Trust Company,
New York, New York, which holds approximately
$1.8 billion in total assets. Applicant also operates a
branch in Chicago, Illinois; agencies in New York City
and Los Angeles, California; representative offices in
Atlanta, Georgia, Houston, Texas, Seattle, Washington, and San Francisco, California; and an Edge
Corporation, Fuji Bank International, San Francisco,
California.
Walter E. Heller International Corporation, with
total assets of approximately $6.5 billion, is engaged in
many aspects of commercial finance and commercial
banking, and is a bank holding company by virtue of
its ownership of American National Bank, Chicago,
Illinois, which has total assets of approximately $3.0
billion. Company, with total assets of approximately
$2.8 billion, is a wholly owned subsidiary of Walter E.
Heller International Corporation and is engaged
through 67 offices throughout the United States in the
permissible nonbanking activities listed above.
In every case involving an acquisition by a bank
holding company under section 4 of the Act, the Board
considers the effect of the acquisition on the financial
condition and resources of the applicant. In evaluating
this application, the Board noted that the primary
capital ratio of Applicant as publicly reported is well
1. S e e ,
e.g.,
BankAmerica
Corporation
68
FEDERAL
RESERVE
BULLETIN 6 4 7 ( O c t o b e r 1982).
2. Walter E. Heller International Corporation, Order dated September 12, 1983.
3. 48 Federal Register 39,699 (September 1, 1983).
4. Applicants' asset data are as of March 31, 1983; other banking
data are as of June 30, 1983.
Legal Developments
below the Board's capital guidelines for U.S. multinational bank holding companies. However, after reviewing all the facts of record relating to the overall
financial condition of Applicant and its U.S. banking
operations, the Board has determined that the financial factors relating to this application are consistent
with approval. In reaching this conclusion, the Board
also took into account the fact that the proposal
involved the acquisition of nonbank companies.
In making this determination, the Board notes that
the application raises the general question of whether
the capital standards applicable to domestic bank
holding companies should also be applied to foreign
banking organizations making acquisitions in the United States, including the acquisition of nonbanking
companies. This question presents a number of complex issues which the Board believes requires careful
consideration and which the Board has under review.
Applicant does not engage in the United States in
real estate loan servicing, factoring, commercial loan
servicing, real estate investment advisory or real estate appraisal services, or credit-related insurance
agency activities. Applicant does engage in the United
States in commercial finance, leasing, and real estate
lending. In each of these cases, the overlapping market
share is insignificant in comparison with the total
market volume. Moreover, there are a large number of
competitors in each of the overlapping markets, and
the elimination of Applicant or Company as a competitor would not have any significant adverse effects on
competition. Accordingly, the Board has determined
that consummation of the proposal would not result in
significant adverse effects on competition in any relevant market.
The Board notes that affiliation with Applicant will
provide financial strength to Heller. 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 effects adverse to the public interest. Accordingly, the
Board has determined that considerations relating to
the public interest factors under section 4 of the Act
are consistent with approval of this application.
Applicant has also applied under section 4(c)(8) of
the Act to engage in arranging equity financing on
behalf of institutional investors for commercial and
industrial income-producing realty. Applicant proposes to engage in this activity in the same manner and
subject to the same commitments as in the proposal by
Walter E. Heller International Corporation to engage
in performing this activity that was approved by the
Board by Order on September 12, 1983. The Board has
determined that, subject to the conditions stated in the
Board's Order of September 12, 1983, regarding the
51
proposal by Walter E. Heller International Corporation, equity financing is closely related to banking. 5
The Board previously has found that the arrangement of equity financing by bank holding companies
would enhance competition, provide greater convenience to investors, increase efficiencies, and lower
costs. These conclusions appear to be applicable to
Applicant's proposal as well. There is no evidence in
the record to indicate that Applicant's performance of
equity financing would result in any undue concentration of resources, decreased or unfair competition,
unsound banking practices, conflicts of interests or
other adverse effects. Based upon these and other
considerations reflected in the record, the Board has
determined that the balance of public interest factors it
is required to consider under section 4(c)(8) of the Act
is favorable. This determination is conditioned upon
Applicant's strictly limiting its equity financing activities as provided in this Order, and the Board's Order
of September 12, 1983.
Applicant has applied to engage in the sale of
property and casualty insurance through a subsidiary
of Company, Abacus Insurance Agency, Chicago,
Illinois ( ' A b a c u s " ) . Abacus provides insurance agency services in connection with certain loans extended
by two other wholly-owned subsidiaries of Company,
Abacus Real Estate Finance Company and Abacus
Mortgage Investment Company. Under Title VI of the
Garn-St Germain Depository Institutions Act of 1982,
Abacus is entitled to continue to engage in the sale of
credit-related property and casualty insurance in Illinois and in certain other states because Abacus and its
bank holding company parent, Walter E. Heller International Corporation, obtained the Board's approval
for such activity under the B H C Act prior to May 1,
1982. The legislative history of Title VI indicates that
Congress intended the grandfather rights available in
Title VI to accrue to the entity actually conducting the
relevant insurance agency activity. (S. Rep. No. 536,
97th Cong., 2d Sess. 40 (1982)).
Abacus, which is the entity that conducted these
insurance agency activities on May 1, 1982, will remain an independent and separate subsidiary of Applicant. Abacus will conduct property and casualty insurance agency activities only from its office in Chicago,
Illinois; only to the extent it currently conducts these
activities; and only in connection with loans extended
by Abacus Real Estate Finance Company and Abacus
Mortgage Investment Company. Moreover, Walter E.
Heller International Corporation will not conduct
these credit-related insurance agency activities after
5. Walter E. Heller International
SERVE B U L L E T I N 8 1 7 ( S e p t e m b e r 1 2 ,
Corporation,
1983).
69 FEDERAL RE-
52
Federal Reserve Bulletin • January 1984
consummation of the proposal. Applicant does not
seek approval for Applicant or its present subsidiaries
to engage in these activities through existing offices of
Applicant or its subsidiaries. Accordingly, the Board
concludes that, under Title VI of the Garn-St Germain
Depository Institutions Act of 1982, Abacus may
continue to engage in these insurance agency activities
after its acquisition by Applicant.
Based on the foregoing, the Board has determined
that the applications should be and hereby are approved. This determination is subject to the limitations
set forth in this Order, the conditions set forth in
section 225.4(c) of Regulation Y, and 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.
The proposed activities shall be commenced not
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.
By order of the Board of Governors, effective
December 20, 1983.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Teeters, Rice, and Gramley. Governor Wallich abstained from the insurance portion of these
applications.
JAMES M C A F E E ,
[SEAL]
Associate
Secretary
of the Board
Norstar Bancorp Inc.,
Albany, New York
Order Approving Application to Expand the
Area of a Subsidiary Offering Credit Life,
Health and Accident
Insurance
Service
Norstar Bancorp, Inc., Albany, New York, a bank
holding company within the meaning of the Bank
Holding Company Act of 1956, as amended (12 U.S.C.
§ 1841 et seq.)(the " A c t " ) , has applied under section
4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and section
225.4(b)(1) of the Board's Regulation Y (12 C.F.R.
§ 225.4(b)(1)) for approval of expansion of the service
area of its subsidiary, Norlife Reinsurance Company,
Phoenix, Arizona, to reinsure credit life, health and
accident insurance sold in connection with extensions
of credit by the bank subsidiaries of Applicant's sub
sidiary, Northeast Bancshare Association, Portland,
Maine ( " B a n c s h a r e " ) . The Board has found such
activities to be closely related to banking (12 C.F.R.
§ 225.4(a)(10)).
Notice of the application, affording interested persons an opportunity to submit comments was published in the Federal Register (48 Federal
Register
46854 (1983)). The time for filing comments has expired and the Board has considered this application
and all comments received in light of the public
interest factors set forth in section 4(c)(8) of the Act.
Applicant, with total consolidated assets of $4.8
billion, 1 is the 12th largest commercial banking organization in New York. Applicant controls six subsidiary
banks in N e w York that hold 1.8 percent of total
deposits in commercial banks in the state (as of
December 31, 1982). Through Bancshare, Applicant
also has indirect control of six bank subsidiaries in
Maine and is the fifth largest banking organization in
Maine with 11.2 percent of total deposits in commercial banks in the state. In addition, Applicant has a
number of subsidiaries engaged in nonbanking activities, including data processing services, equipment
leasing, mortgage banking, and reinsuring credit life,
accident and health insurance. Through Bancshare,
Applicant controls two nonbank subsidiaries engaged
in providing automated customer service support to
affiliated banks, and administering and acting as agent
for credit card and check guarantee programs for
affiliated and other banks. Applicant's nonbank subsidiaries account for less than 1 percent of its total
consolidated assets.
Applicant proposes to engage in insurance underwriting activities as authorized by the Board's Regulation Y. Section 225.4(a)(10) of Regulation Y authorizes
bank holding companies to underwrite credit life insurance and credit accident and health insurance that is
directly related to extensions of credit by the bank
holding company system. The regulation requires that
an applicant must offer premium rate reductions or
equivalent public benefits in order to engage in this
activity. (12 C.F.R. § 225.4(a)(10) n.lOa.) Applicant
has committed to offer the required rate reduction. 2
1. All banking data are as of June 30, 1983, unless otherwise
indicated.
2. In that regard, the Board has recently sought public comment
regarding the proposed elimination of the rate reduction requirement
from this activity. (48 Federal Register 53125 (Nov. 25, 1983)). Any
final action taken by the Board with respect to this rule would be
applicable to Applicant.
Legal Developments
There is no evidence in the record indicating that
consummation of the proposal would result in any
undue concentration of resources, adverse effects on
competition, conflicts of interests, unsound banking
practices, or any other adverse effects. Moreover, the
Board also has determined that the balance of the
public interest factors the Board is required to consider under section 4(c)(8) of the Act is favorable.
Accordingly, based upon the foregoing and other
facts of record, the application is hereby approved.
This determination is subject to the conditions set
forth in section 225.4(c) Regulation Y 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.
The proposal shall be effectuated not 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
December 21, 1983.
Voting for this action: Vice Chairman Martin, and Governors Partee, Teeters, Rice, and Gramley. Abstaining from
this action: Governor Wallich. Absent and not voting: Chairman Volcker.
JAMES M C A F E E ,
[SEAL]
Associate
Secretary
of the Board
PNC Financial Corp.,
Pittsburgh, Pennsylvania
Order Approving
Activities
Expansion
of Data
Notice of the application, affording opportunity for
interested persons to submit comments, has been duly
published (48 Federal Register 51862 (November 14,
1983)). The time for filing comments has expired, and
the application and all comments received have been
considered in light of the public interest factors set
forth in section 4(c)(8) of the Act.
Applicant, the second largest commercial banking
organization in Pennsylvania, controls three bank subsidiaries with aggregate domestic deposits of $7.0
billion, representing 9.5 percent of the total deposits in
the state. 1
In connection with this application, the Secretary
has taken into consideration whether the activity to be
performed by Applicant can reasonably be expected to
produce benefits to the public that outweigh possible
adverse effects. Having considered the record of this
application in light of the factors contained in the Act,
it is the Secretary's judgment that the balance of the
public interest factors under section 4(c)(8) is favorable. On the basis of these considerations, the application is approved. This determination is subject to the
conditions set forth in section 225.4(c) of Regulation Y
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 the provisions
and purposes of the Act and the Board's regulations
and orders issued thereunder, or to prevent evasion
thereof.
The activity shall be commenced not 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 Secretary of the Board, acting
pursuant to delegated authority for the Board of Governors, effective December 21, 1983.
JAMES M C A F E E ,
Processing
PNC Financial Corp., Pittsburgh, Pennsylvania, a
bank holding company within the meaning of the Bank
Holding Company Act of 1956, as amended (12 U.S.C.
§ 1841 et seq.), has applied for approval under section
4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) to expand
the data processing activities of its indirect nonbank
subsidiary, L.S. Consulting Corp., doing business as
Littlewood, Shain & Company, Wayne, Pennsylvania,
to include the sale to depository institutions and onsite installation of a software package called Money
Decisions. These activities have been determined by
the Board to be closely related to banking (12 C.F.R.
§ 225.4(a)(8)(H)).
53
[SEAL]
Associate
Secretary
of the Board
Security Pacific Corporation,
Los Angeles, California
Order Approving Application
Certain Futures Commission
Broker!Dealer
Activities
to Engage in
Merchant and
Security Pacific Corporation, Los Angeles, California,
a bank holding company within the meaning of the
1. Banking data are as of December 31, 1982.
54
Federal Reserve Bulletin • January 1984
Bank Holding Company Act ( " B H C A c t " ) , has applied for the Board's approval under section 4(c)(8) of
the BHC Act (12 U.S.C. § 1843(c)(8)) and section
225.4(b)(2) of the Board's Regulation Y (12 C.F.R.
§ 225.4(b)(2)) to engage de novo through its whollyowned indirect subsidiary, Security Pacific Mortgage
Services, Inc. 1 ("Mortgage Services"), in the following activities: the execution and clearance on behalf of
nonaffiliated persons, of financial futures contracts
including futures on securities issued or guaranteed by
the U.S. government and its agencies and on U.S. and
foreign money market instruments; and the execution
and clearance of options on these financial futures
contracts on behalf of nonaffiliated persons; acting as a
broker and dealer on behalf of nonaffiliated persons
with respect to securities issued or guaranteed by the
U.S. government and its agencies; and acting as a
broker with respect to options on securities issued or
guaranteed by the U.S. government and its agencies
and with respect to options on U.S. and foreign money
market instruments. In addition, Mortgage Services
proposes to offer incidental investment advice in connection with its FCM and broker/dealer activities.
Notice of the application, affording interested persons an opportunity to submit comments on the relation of the proposed activities to banking and on the
balance of the public interest factors regarding the
application has been duly published (48 Federal Register 23910 (May 27, 1983)). 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
BHC Act. 2
Applicant is a bank holding company by virtue of its
control of Security Pacific National Bank, Los Angeles, California ( " B a n k " ) . Bank holds deposits of approximately $26.0 billion 3 and is the second largest
banking organization in California. Applicant, through
its subsidiaries, engages in various permissible nonbanking activities. Applicant's financial and managerial resources, and in particular, its capitalization are
adequate for it to engage in additional nonbanking
activities.
In order to approve an application submitted pursuant to section 4(c)(8) of the B H C Act, the Board is first
required to determine that the proposed activities are
closely related to banking or managing or controlling
1. Security Pacific Mortgage Services, Inc. is a wholly-owned
direct subsidiary of Security Pacific Mortgage Corporation ("Mortgage Corporation") a direct nonbank subsidiary of Applicant engaged
primarily in mortgage banking activities. Mortgage Corporation is the
third largest issuer of GNMA securities in the United States.
2. The Dealer Bank Association submitted a comment in favor of
the proposal.
3. All banking data are as of June 30, 1983.
banks. The Board has determined previously that
certain FCM activities are closely related to banking:
the execution and clearance of futures contracts in
bullion, foreign exchange, U.S. government and agency securities, and money market instruments, 4 and
execution and clearance of options on futures contracts in gold bullion and U.S. government securities. 5
Applicant's proposal to act as an FCM with respect to
futures contracts on securities issued or guaranteed by
the U.S. government and its agencies and on U.S. and
foreign money market instruments is substantially
similar to proposals to engage in these activities previously approved by the Board. The record indicates
that Applicant, Bank and Mortgage Corporation have
been active in the cash and futures markets for these
instruments and have the expertise to provide these
services to customers. 6 In addition, Mortgage Services has developed the requisite controls to monitor
customer credit risk. 7 Thus, the Board has determined
that in the manner proposed, these activities are
closely related to banking.
The Board also has determined by order that underwriting and dealing in certain government securities
and money market instruments is closely related to
banking. The Board's finding that the activity is closely related to banking was premised on the facts that
national and State member banks are expressly authorized by statute to engage in the activity, 12 U.S.C.
§ 24 (Seventh), and that many banks in fact engage in
the activity. 8 The Board finds Mortgage Services'
proposal to broker and deal in government securities
and money market instruments is substantially similar
to proposals the Board has previously approved. Accordingly, the Board concludes that in the manner
proposed, Mortgage Services' proposal to broker and
deal in U.S. government and agency securities and
money market instruments is closely related to banking.
Mortgage Services proposes to engage in several
activities not previously determined by the Board to
4. E.g., J.P.
RESERVE
Morgan
BULLETIN
514
& Company,
(1982);
Citicorp,
Incorporated,
68
68 FEDERAL
FEDERAL
RESERVE
BULLETIN 7 7 6 (1982).
5. E.g., J.P.
Morgan
& Company,
RESERVE B U L L E T I N 7 7 3 ( 1 9 8 3 ) ("Morgan
Incorporated,
69 FEDERAL
II").
6. Indeed, Mortgage Corporation has used financial futures to
reduce the risks associated with its mortgage banking activities since
such futures were first traded in 1975.
7. Pursuant to a formal service agreement, Mortgage Corporation
will provide certain services to Mortgage Services, including the
following; assessing customer credit risk, monitoring customer positions and margin accounts and providing administrative and data
processing services. These services will assist Mortgage Services in
establishing appropriate position limits for customers.
8. 41 Federal Register 47083 (1976); 43 Federal Register 5382
(1978).
Legal Developments
be closely related to banking. Specifically, Mortgage
Services proposes to execute and clear options on
futures on U.S. and foreign money market instruments
and to broker options on securities issued or guaranteed by the U . S . Government and its agencies and
options on money market instruments.
With respect to Applicant's proposal to execute and
clear options on futures on U.S. and foreign money
market instruments, the Board has previously determined that options on futures are functionally and
operationally similar to a futures contract for the same
commodity. 9 As noted above, the Board has determined previously that executing and clearing futures
on money market instruments is closely related to
banking, and Applicant's prior experience in the cash
and futures markets for these instruments demonstrates that Mortgage Services would have the expertise to provide the proposed options services with
respect to these financial futures contracts. Accordingly, the Board concludes that Mortgage Services'
proposal with respect to options on financial futures
contracts is closely related to banking.
Mortgage Services also proposes to engage in brokerage activities with respect to options on certain
physicals; i.e., securities issued or guaranteed by the
U.S. Government and its agencies and U.S. and
foreign money market instruments. 1 0 Although an option on a physical differs somewhat from a future or an
option on a future, an option on a physical appears to
serve the same function as these other instruments
since it offers the investor a means to hedge portfolio
risk.
The Board has previously approved applications to
engage in discount securities brokerage for retail customers with respect to corporate securities and has
added discount securities brokerage to the list of
permissible nonbanking activities for bank holding
companies generally. 11 As a broker for options on
physicals, Mortgage Services will act solely as agent
on behalf of nonaffiliated persons for the purchase and
sale of such options. The Board notes that a broker of
9. Morgan II, supra.
10. Pursuant to an accord between the SEC and the CFTC, options
on securities are considered securities and are regulated by the SEC.
The substance of this accord was subsequently adopted by Congress,
Pub. L. No. 97-444, 96 Stat. 2294 (codified as amended at 7 U . S . C .
§ 2(a)) (January 11, 1982) and Pub. L. N o . 97-303, 96 Stat. 1409
(codified as amended at 15 U . S . C . § 77b) (October 13, 1982). Thus,
Mortgage Services will be required to register as a broker/dealer under
the Securities Exchange Act of 1934 in connection with its brokering
of options on government securities and of options on money market
instruments.
11. BankAmerica
Corporation,
6 9 FEDERAL RESERVE BULLETIN
105 (1983). Codified at 12 C.F.R. § 225.4(a)(15). The Board's decision
was subsequently upheld by the Court of Appeals in Securities
Industry Association
v. Board of Governors, 716 F.2d 92 (2nd Cir.
1983). The Board notes that the brokerage activities proposed by
Mortgage Services are similar to those the Board has previously
55
options on U.S. government and agency securities and
of options on money market instruments is a securities
broker under the securities laws. Moreover, the services performed by a broker of options on U.S.
Government and agency securities and on money
market instruments appear to be similar to those of
other brokers. Accordingly, the Board concludes that
Mortgage Services' proposal to broker options on
U.S. Government and agency securities and options
on U.S. and foreign money market instruments is
closely related to banking.
In addition, Mortgage Services proposes to offer
incidental investment advice in connection with its
FCM activities. Mortgage Services will provide general research and advice on market conditions and
trading strategies, client account information, reconciliation of trades and communication linkage between
customers and the exchange floor. These functions
would be performed for Mortgage Services' customers
only as part of its F C M services and would not be
offered separately or on a fee basis. The Board has
determined previously that the offering of investment
advice is incidental to FCM services. 12 Mortgage
Services' proposal to offer advice in connection with
its FCM activities is substantially similar to and consistent with other proposals approved by the Board.
Based on the foregoing, the Board concludes that the
advice Mortgage Services will offer in connection with
its FCM activities is incidental to such activities.
In order to approve this application, the Board is
also required to determine that the performance of the
proposed activities by Mortgage Services " c a n 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" (12 U.S.C.
§ 1843(c)(8)).
Consummation of Applicant's proposal would provide added convenience to those clients of Applicant
and its subsidiaries that trade in the cash, forward and
futures markets for these instruments. The Board
expects that the de novo entry of Mortgage Services
approved. While the Banking Act of 1933, commonly known as the
Glass-Steagall Act, prohibits a commercial bank from engaging in or
being affiliated with a firm engaged in certain securities activities,
Courts have concluded that a commercial bank may act as a securities
broker, i.e., execute purchases and sales of securities as agent for
customers. Accordingly, the Board does not believe Mortgage Services' proposed brokerage activities with respect to options on securities issued or guaranteed by the U . S . government and its agencies and
money market instruments would violate the prohibitions of the GlassSteagall Act.
12. E . g . ,
(1982).
Citicorp,
68
FEDERAL
RESERVE
BULLETIN
776,
778
56
Federal Reserve Bulletin • January 1984
into the market for these services would increase the
level of competition among providers of these services
already in operation. Accordingly, the Board concludes that the performance of the proposed activities
by Mortgage Services can reasonably be expected to
produce benefits to the public.
The Board has considered several issues with respect to possible adverse effects. The Board recognizes that the activities of executing futures contracts
and options with regard to futures contracts involve
various types of financial risks and potential conflicts
of interests, and are susceptible to anticompetitive and
manipulative practices. In approving proposals to act
as an FCM, the Board has relied in the past on action
taken by Congress to address these types of possible
adverse effects through the passage of the Commodity
Exchange Act 13 and the creation of the Commodity
Futures Trading Commission ( " C F T C " ) . The Board
has relied also on the regulations adopted by the CFTC
to effectuate the provisions of the Commodity Exchange Act. 14
The Board has placed particular reliance on the
following aspects of Applicant's proposal to act as an
FCM.
1. Mortgage Services generally will not trade futures
for its own account except for purposes of hedging
its positions in securities. 15
2. Mortgage Services shall not, without the prior
consent of the Board, become a clearing member of
any futures or securities exchange whose rules
require the parent corporation of a clearing member
to also become a clearing member, unless the requirement is waived with respect to Applicant.
3. Mortgage Services has committed that it will, in
addition to time-stamping orders of all customers to
the nearest minute, execute all orders, to the extent
consistent with customers' specifications, in strictly
chronological sequence, and that it will execute all
orders with reasonable promptness with due regard
to market conditions.
4. Mortgage Services will not extend credit to customers for the purpose of meeting initial or maintenance margin required of customers, subject to the
limited exception of posting margin on behalf of
customers in advance of prompt reimbursement.
13. 7 U.S.C. §§ 1-24.
14. 17 C.F.R. § 33.4.
15. The Board notes that Mortgage Services may trade for its own
account to a limited extent and solely for purposes of hedging its
portfolio of U.S. Government and government-backed securities. In
order to insure that Mortgage Services so limits its trading, however,
and does not engage in speculative transactions, the Board expects
Mortgage Services to comply with the Board's Policy Statement
5. Mortgage Services has and will maintain a capitalization fully adequate to meet its own commitments
and commitments of its customers, including its
affiliates.
In addition, in evaluating Applicant's proposal to act
as a broker of options on U . S . Government and
government-backed securities and options on U.S.
and foreign money market instruments, the Board has
taken into account and has relied upon the regulatory
framework established pursuant to law by the SEC for
such trading which embodies the considerations outlined in points 1-5 above as well as other prudential
considerations.
The Board has considered also the potential for
adverse effects associated with Mortgage Services'
proposed broker/dealer activities with regard to U.S.
government securities and money market instruments.
The Board notes that as a nonbank subsidiary of
Applicant, Mortgage Services would be engaging in
underwriting and dealing in government securities
without being subject to many of the rules that currently apply to Bank's conduct of the activity and the
resulting potential for unsound banking practices.
Accordingly, the Board expects that Mortgage Services will conduct the proposed activities subject to
the same rules and prudential limitations under which
Bank would conduct such activities. 16 Any breach of
these restrictions by Mortgage Services would constitute an unsafe or unsound banking practice that could
be the subject of formal supervisory action by the
Board.
There is no evidence in the record that consummation of the proposal would result in any effects that
would be adverse to the public interest.
Regarding the use of Futures, Forward and Standby Contracts,
12 C.F.R. § 225.142. Thus, the policy objectives of its trading must be
specific enough to outline permissible risk-reducing contract strategies and their relationship to Mortgage Services' other business
activities, and sufficiently detailed to permit internal auditors and
examiners to determine whether operations personnel have acted in
accordance with authorized objectives. Operating personnel are expected to be able to describe and document in detail how the contract
positions they have taken contribute to the attainment of Mortgage
Services' stated objectives.
16. For example, member banks by statute are permitted to underwrite certain types of public housing and dormitory bonds of states
and municipalities, provided that the amount of such securities of a
single issuer held by the bank does not exceed ten percent of the
bank's capital and surplus. (12 U.S.C. § 24 Seventh.) Such securities
are designated "Type II" securities in regulations of the Comptroller
of the Currency. (12 C.F.R. § 1.3(a)). Mortgage Services should not
underwrite, deal in, or hold Type II securities by any issuer in
amounts that would not be permitted if such activities were conducted
by Bank and should not sell securities to trust accounts of affiliated
banks except as permitted by regulations of the Comptroller of the
Currency.
Legal Developments
Based upon a consideration of all the relevant facts,
the Board concludes that the balance of the public
interest factors that the Board is required to consider
under section 4(c)(8) is favorable. Accordingly, the
application is hereby approved. This determination is
subject to the conditions set forth in section 225.4(c) of
Regulation Y 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 the
provisions and purposes of the Act and the Board's
regulations and orders issued thereunder, or to prevent evasion thereof.
The transaction shall be made not 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, pursuant to delegated authority.
By order of the Board of Governors, effective
December 8, 1983.
57
Applicant has also applied for the Board's approval
under section 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)) and section 225.4(b)(2) of the Board's
Regulation Y (12 C.F.R. § 225.4(b)(2)) to acquire
Company's nonbanking subsidiaries, Firestone Financial Corp., Newton Centre, Massachusetts ("Firestone"), and Homeowners Mortgage Company, Nashua, New Hampshire ( " H o m e o w n e r s " ) . Firestone
engages in commercial lending and leasing activities
and Homeowners engages in the activity of originating
1-4 family residential mortgage loans for sale to investors in the secondary market. All of these activities
have been determined by the Board to be closely
related to banking under section 225.4(a)(1), and (6) of
Regulation Y (12 C.F.R. § 225.4(a)(1) and (6)).1
Order Approving Acquisition of a Bank Holding
Company and of Companies Engaged in Commercial
Lending, Leasing, and Mortgage
Banking
Notice of these applications, affording an opportunity for interested persons to submit comments has been
given in accordance with sections 3 and 4 of the Act
(48 Federal Register 50162 & 50164 (1983)). 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 section 3(c) of the Act
(12 U.S.C. § 1842(c)) and the considerations specified
in section 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)).
Applicant, with seven bank subsidiaries, has consolidated assets of $3.2 billion and deposits of $2.6
billion. 2 It is the 15th largest banking organization in
New York State. Upon acquisition of Company, with
total assets of $960 million and deposits of $774
million, Applicant would control the largest banking
organization in Maine.
Section 3(d) of the Act (12 U.S.C. § 1842(d)) prohibits the Board from approving any application by a bank
holding company to acquire any bank located outside
of the state in which operations of the bank holding
company's subsidiaries are principally conducted, unless such acquisition is "specifically authorized by
statute laws of the state in which such bank is located,
by language to that effect and not merely by implication." The statute laws of Maine authorize the acquisi-
Key Banks, Inc., Albany, New York, a bank holding
company within the meaning of the Bank Holding
Company Act of 1956, as amended ( " A c t " ) (12 U.S.C.
§ 1841 et seq.), has 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 shares of Depositors
Corporation, Augusta, Maine ( " C o m p a n y " ) . As a
result of the acquisition, Applicant would acquire
Company's four subsidiary banks, which are all located in Maine: Depositors Trust Company, Augusta;
Depositors Trust Company of Southern Maine, Portland; Depositors Trust Company of Aroostock, Fort
Fairfield; and Depositors Trust Company of Eastern
Maine, Bangor.
1. Company does not now hold the shares of Homeowners pursuant to section 4(c)(8) of the Act, but rather holds them pursrant to the
exemption in section 4(c)(1)(C) of the Act for shares of companies that
perform services for bank holding companies or their banking subsidiaries. Under Homeowners' current operating procedures, funds for
mortgage loans are provided directly by the investor to whom such
loans are sold. Because Homeowners plans to expand its activities to
include the provision of funds and warehousing of loans until they are
sold, Depositors will no longer be able to rely on the exemption in
section 4(c)(1)(C) of the Act to hold the shares of Homeowners. After
Homeowners modifies its activities, they would continue to be of the
type permissible under section 225.4(a)(1) of Regulation Y, and,
accordingly, Applicant has applied to acquire, and Company has
applied to retain, ownership of Homeowners under section 4(c)(8) of
the Act.
2. Banking data are as of June 30, 1983.
Voting for this action: V i c e Chairman Martin and G o v e r nors Wallich, Partee, R i c e , and Gramley. A b s e n t and not
voting: Chairman V o l c k e r and G o v e r n o r Teeters.
WILLIAM W . WILES,
[SEAL]
Secretary
of the Board
Orders Issued Under Sections 3 and 4 of Bank
Holding Company Act
Key Banks, Inc.,
Albany, New York
58
Federal Reserve Bulletin • January 1984
tion of a banking institution in Maine by a bank holding
company that controls a bank located in another state,
if that other state authorizes the acquisition of a
banking institution in that state by a Maine bank
holding company under terms no more restrictive than
those imposed under Maine law. 3 Similarly, New
York law authorizes the acquisition of a banking
institution in New York by a bank holding company
that controls a bank located in another state, if that
other state authorizes the acquisition of a banking
institution in that state by a N e w York bank holding
company. 4 The Board has previously concluded that
the conditions for approval of interstate acquisitions
under the New York statute are not more restrictive
than those provided for under the Maine statute. 5
Based on the foregoing, the Board has determined, as
required under section 3(d) of the Act, that the proposed acquisition conforms with Maine law and is
expressly authorized by the statute laws of Maine.
Company's banking subsidiaries operate 90 offices
in 20 different markets in Maine. Inasmuch as none of
Applicant's subsidiary banks operates in Maine, the
proposed transaction would not eliminate existing
competition in any relevant market. The Board has
considered the effects of this proposal on probable
future competition and has also examined the proposal
in light of its proposed guidelines for assessing the
competitive effects of market-extension mergers or
acquisitions. 6 In evaluating the effects of a proposal
on probable future competition, the Board considers
market concentration, the number of probable future
entrants into the market, the size of the bank to be
acquired, and the attractiveness of the market for
entry on a de novo or foothold basis absent approval of
the acquisition. After consideration of these factors in
the context of the specific facts of this case, the Board
concludes that consummation of this proposal would
not have any significant adverse effects on probable
future competition in any relevant market.
With respect to the 20 banking markets in which
Company operates, the record shows that in 19 of
these markets, either Company is not a market leader
or the market is not attractive for de novo entry. In
addition, in view of the fact that Maine permits the
3. Me. Rev. Stat. Ann. tit. 9-B, § 1013 (Supp 1980).
4. N . Y . Banking Law § 142-b (McKinney Supp. 1982).
5. Norstar Bancorp Inc. (Northeast Bancshare Association) (69
FEDERAL RESERVE B U L L E T I N 3 0 6 ( 1 9 8 3 ) ) .
6. "Proposed 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)). Although the proposed policy statement has not been adopted by the Board, the Board is using the policy
guidelines in its analysis of the effects of a proposal on probable future
competition.
acquisition of banks in Maine by out-of-state bank
holding companies, there are a number of commercial
banking organizations, including 18 commercial banking organizations in New York with assets of over $1
billion each, that can be identified as probable future
entrants into each of the 20 relevant markets. On the
basis of these and other facts of record, the Board
concludes that the elimination of Applicant as a probable future entrant into the 20 markets served by
Company would not have a substantial anticompetitive effect in those markets.
Applicant's seven banking subsidiaries operate 200
offices in 25 markets throughout New York State.
There are at least six probable future entrants into
each of the markets in which Applicant operates, and
in view of this, and other facts of record, the Board
concludes that elimination of Company as a probable
future entrant into the markets served by Applicant
would not have a substantial anticompetitive effect in
those markets.
Based on the foregoing and other facts of record, the
Board concludes that consummation of the proposed
acquisition of Company's banking subsidiaries would
not have any significant adverse effects on existing or
probable future competition and would not increase
the concentration of banking resources in any relevant
area.
The financial and managerial resources of Applicant, Company, and their subsidiaries are considered
satisfactory and their prospects appear favorable. Affiliation with Applicant would enable Company's
banking subsidiaries to expand the scope and array of
their banking services. N e w and expanded services
would include automobile leasing, discount brokerage
services, retail store point-of-sale banking, venture
capital loans, and credit life, accident and health
insurance.
Applicant has also applied to acquire two nonbanking subsidiaries of Company, Homeowners and Firestone. Homeowners currently is a wholly-owned subsidiary of one of Company's banking subsidiaries,
Depositors Trust Company. Applicant anticipates,
however, that in the near future, Mortgage Company
of New Hampshire, Londonderry, New Hampshire
( " M C N H " ) , will convert an outstanding debenture
that it currently holds into 50 percent of the capital
stock of Homeowners. Thus, the application to acquire Homeowners contemplates that Homeowners'
activities will be performed as a joint venture with
MCNH.
M C N H is owned by a group of residential home
builders who desire to have an outlet that provides
permanent financing for the sale of homes that they
build in New Hampshire. M C N H is currently an
inactive mortgage company that has no operating
Legal Developments
personnel. The Board has expressed its concern regarding the potential for undue concentration of resources or other adverse effects that result through the
combination in a joint venture of banking and nonbanking companies 7 and has analyzed this proposal
with respect to its probable effects on existing and
potential competition between M C N H , Homeowners
and Applicant in the residential mortgage market.
M C N H is not an operating company, and Homeowners and Applicant do not compete in this line of
commerce in any relevant market. Therefore, formation of the joint venture and its acquisition by Applicant would not eliminate any existing competition in
any relevant market. With respect to the effect of this
transaction on potential competition in the relevant
product market, while M C N H can enter the markets
served by Homeowners and Applicant separately, it
does not appear to be a likely candidate for such entry
in view of its size and the fact that it has been inactive
for a number of years. In addition, while Applicant and
Homeowners can enter each others' markets, in view
of the number of competitors in the residential mortgage market and the unconcentrated nature of the
market, the Board concludes that the proposed acquisition of Homeowners is not likely to have significant
adverse effects on probable future competition.
Consummation of the joint venture proposal and its
acquisition by Applicant may be expected to result in
public benefits. The combination of Applicant's and
Company's financial resources and expertise in the
origination and sale of mortgages, with M C N H ' s familiarity and building contacts in the market area
served by Homeowners would make Homeowners a
stronger competitor in a highly competitive market.
With respect to Applicant's proposed acquisition of
Firestone, Applicant and Firestone compete in the
relevant product and geographic market, and thus
some existing competition would be eliminated
through consummation of this proposal. However,
both Applicant and Firestone have relatively small
market shares and, therefore, the amount of existing
competition that would be eliminated is not significant.
There is no evidence in the record to indicate that
approval of Applicant's proposal to acquire Firestone
and Homeowners would result in undue concentration
of resources, conflicts of interest, 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) of the
Act is consistent with approval of the application.
Based on the foregoing and other facts of record, the
Board has determined that the applications under
7. See, e.g., Area Bancshares Corporation, 69 FEDERAL RESERVE
BULLETIN 3 3 ( 1 9 8 3 ) .
59
section 3 and 4 of the Act, should be and hereby are
approved for the reasons set forth above. The acquisition of Company's banking subsidiaries pursuant to
section 3 of the Act shall not be made before the
thirtieth calendar day following the effective date of
this Order, and neither the acquisition of Company's
banking subsidiaries nor the acquisition of its nonbank
subsidiaries shall occur 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. The approval of Applicant's proposal to acquire Depositors' nonbank subsidiaries and
to engage in commercial lending and leasing, and
mortgage loan origination and sale activities is subject
to the conditions set forth in section 225.4(c) of
Regulation Y and to the Board's authority to require
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 Board's regulations
and orders issued thereunder, or to prevent evasion
thereof.
By order of the Board of Governors, effective
December 27, 1983.
Voting for this action: Chairman Volcker and Governors
Wallich, Partee, Rice, and Gramley. Absent and not voting:
Governors Martin and Teeters.
JAMES M C A F E E ,
[SEAL]
Associate
Orders Issued Under
Corporation
Act
Secretary
Section
of the Board
5 of Bank
Service
Liberty National Bank and Trust Company of
Louisville,
Louisville, Kentucky
Order Approving
Corporation
Acquisition
of a Bank
Service
Liberty National Bank and Trust Company of Louisville, ( " B a n k " ) , Louisville, Kentucky, a national bank
chartered by the Comptroller of the Currency, has
applied for the Board's approval under section 5(b) of
the Bank Service Corporation Act, as amended
( " B S C A " ) (12 U.S.C. § 1861 et seq.), to acquire all of
the shares of a bank service corporation, L N B Life
Insurance Company, Louisville, Kentucky ("Company"). Company would engage in the activity of underwriting, as reinsurer, credit life and credit accident and
60
Federal Reserve Bulletin • January 1984
health insurance written in connection with extensions
of credit by Bank.
The BSCA was amended by Section 709 of the
Garn-St Germain Act 1 to require prior Board approval of the investment by an insured bank in the capital
stock of a bank service corporation that performs any
" s e r v i c e " under authority of section 4(f) of the Act. 12
U.S.C. § 1864(f). Section 4(f) of the BSCA provides
that:
a bank service corporation may perform at any geographic
location any service, other than deposit taking, that the
Board has determined, by regulation, to be permissible for a
bank holding company under section 4(c)(8) of the Bank
Holding Company Act. 2
Board's authority to require such modification or
termination of the activities of a bank service corporation as the Board finds necessary to assure compliance
with the provisions and purposes of the Bank Service
Corporation Act or to prevent evasions thereof. 3
By order of the Board of Governors, effective
December 19, 1983.
Voting for this action: Vice Chairman Martin and Governors Partee, Teeters, Rice, and Gramley. Abstaining from
this action: Governor Wallich. Absent and not voting: Chairman Volcker.
JAMES M C A F E E ,
[SEAL]
Applicant proposes to engage in insurance underwriting activities to the extent those activities are
generally permissible for bank holding companies in
the Board's Regulation Y, 12 C.F.R. § 225.4(a)(10).
Section 225.4(a)(10) of Regulation Y authorizes bank
holding companies to underwrite credit life insurance
and credit accident and health insurance that is directly related to extensions of credit by the bank holding
company system. The regulation requires that an
applicant must offer premium rate reductions or equivalent public benefit in order to engage in this activity.
(12 C.F.R. § 225.4(a)(10) n.lOa). Applicant has committed to offer the required rate reductions.
Section 5(c) of the BSCA authorizes the Board, in
acting upon applications to invest in bank service
corporations, to consider the financial and managerial
resources of the institutions involved and possible
adverse effects, such as undue concentration of resources, unfair or decreased competition, conflicts of
interest, or unsafe or unsound banking practices.
(12 U.S.C. § 1865(c)). The Board has reviewed the
financial and managerial resources and future prospects of Bank and Company, including the financial
capability of Bank to make a proposed investment
under this Act and has determined that such factors
are consistent with approval. Additionally, the Board
has found no adverse effects which would warrant
disapproval of the application.
Associate
Secretary
of the Board
Michigan National Bank of Detroit,
Detroit, Michigan
Order Approving
Corporation
Acquisition
of a Bank
Service
Michigan National Bank of Detroit, Detroit, Michigan
( " B a n k " ) , a national bank chartered by the Comptroller of the Currency, has applied for the Board's
approval under section 5(b) the Bank Service Corporation Act, as amended ( " B S C A " ) (12 U.S.C. § 1861
et seq.), to acquire all of the shares of a bank service
corporation, MNC Mortgage & Realty Advisors, Inc.,
Southfield, Michigan ( " C o m p a n y " ) . Company would
provide real estate investment advice through offices
located in Michigan and Florida to investors throughout the United States.
The BSCA was recently amended by Section 709 of
the Garn-St Germain Act 1 to require prior Board
approval of any investment by an insured bank in the
capital stock of a bank service corporation that performs any " s e r v i c e " under authority of section 4(f) of
the Act. Section 4(f) of the BSCA 2 provides that:
Accordingly, the Board has determined to approve
this application. This determination is subject to the
3. In that regard, the Board has recently sought public comment
regarding the proposed elimination of the rate reduction requirement
from this activity. 48 Federal Register 53125 (Nov. 25, 1983). Any
final action taken by the Board with respect to this rule would be
applicable to Applicant.
1. Garn-St Germain Depository Institutions Act of 1982, Pub. L.
No. 97-320, 96 Stat. 1469 (1982), as amended by, S.J. Res. 271, Pub.
L. No. 97-457, 96 Stat. 2508 (1983). ("Garn-St Germain Act").
2. Under section 4(c)(8) of the Bank Holding Company Act
(12 U.S.C. § 1841 et seq.) ("BHC Act"), a bank holding company
may engage in activities determined by the Board to be closely related
to banking.
1. Garn-St Germain Depository Institutions Act of 1982, Pub. L.
No. 97-320, 96 Stat. 1469 (1982), as amended by S.J. Res. 271, Pub. L.
No. 97-457, 96 Stat. 2508 (1983).
2. 12 U.S.C. § 1864(f).
Legal Developments
a bank service corporation may perform at any geographic
location any service, other than deposit taking, that the
Board has determined, by regulation, to be permissible for a
bank holding company under section 4(c)(8) of the Bank
Holding Company Act. 3
Applicant proposes to engage in real estate investment advisory activities to the extent those activities
are generally permissible for bank holding companies
under the Board's Regulation Y, 12 C.F.R.
§ 225.4(a)(5)(iii).
Section 5(c) of the BSC A authorizes the Board, in
acting upon applications to invest in bank service
corporations, to consider the financial and managerial
resources of the institutions involved, their future
3. Under section 4(c)(8) of the Bank Holding Company Act
(12 U.S.C. § 1841 et seq.), a bank holding company may engage in
activities determined by the Board to be closely related to banking and
a proper incident thereto.
ORDERS
APPROVED
UNDER
BANK
HOLDING
COMPANY
61
prospects, and possible adverse effects, such as undue
concentration of resources, unfair or decreased competition, conflicts of interest, or unsafe or unsound
banking practices. 12 U.S.C. § 1865(c). The Board
finds that considerations relating to these factors are
consistent with approval and that there is no evidence
of adverse effects.
Accordingly, on the basis of the record, the application is approved for the reasons summarized above.
By order of the Board of Governors, effective
December 7, 1983.
Voting for this action: Chairman Volcker and Governors
Wallich, Partee, and Gramley. Absent and not voting: Governors Martin, Teeters, and Rice.
WILLIAM W . WILES,
[SEAL]
Secretary
of the Board
ACT
By the Board of Governors
During December 1983 the Board of Governors approved the applications listed below. Copies are available upon
request to Publications Services, Division of Support Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551
Section 3
Applicant
ASB Bank Holding Campany,
Pierre, South Dakota
Barnett Banks of Florida, Inc.,
Jacksonville, Florida
Citizens National Corporation,
Paintsville, Kentucky
D.L. Shares Limited Partnership,
Detroit Lakes, Minnesota
First Arkansas Bankstock Corporation,
Little Rock, Arkansas
PNC Financial Corp,
Pittsburgh, Pennsylvania
Stillwater Bancorporation, Inc.,
Stillwater, Minnesota
Bank(s)
American State Bank of Pierre,
Pierre, South Dakota
Southern Banks of Florida, Inc.,
High Springs, Florida
Citizens National Bank of Paintsville,
Paintsville, Kentucky
D.L. Bancshares, Inc.,
Detroit Lakes, Minnesota
First National Bank of Detroit Lakes,
Detroit, Lakes, Minnesota
Peoples Bank & Trust Company,
Russellville, Arkansas
Marine Bancorp, Inc.,
Erie, Pennsylvania
Cosmopolitan State Bank of Stillwater,
Stillwater, Minnesota
Board action
(effective
date)
December 30, 1983
December 1, 1983
December 13, 1983
December 27, 1983
December 1, 1983
December 22, 1983
December 6, 1983
A62 Federal Reserve Bulletin • January 1984
By Federal Reserve
Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders are
available upon request to the Reserve Banks.
Section 3
Reserve
Bank
Effective
date
Applicant
Bank(s)
American Bancorporation, Inc.,
Sapulpa, Oklahoma
American Eagle Bancorp., Inc.,
Glen Carbon, Illinois
Mannford State Bank,
Mannford, Oklahoma
Cottonwood Bank and Trust
Company,
Glen Carbon, Illinois
Exchange National Bank of Cottonwood Falls,
Cottonwood Falls, Kansas
The First Trust & Savings Bank,
Aurelia, Iowa
Kansas City
December 12, 1983
St. Louis
December 8, 1983
Kansas City
December 12, 1983
Chicago
December 14, 1983
Table Rock Bancshares, Inc.,
Shell Knob, Missouri
State Bank of Darfur,
Darfur, Minnesota
Farmers State Insurance Agency,
Carroll, Nebraska
Community Bank & Trust, N.A.,
Fairmont, West Virginia
First Bank of Marine,
Marine, Illinois
The Union National Bank of Ashland,
Ashland, Wisconsin
Framingham Trust Company,
Framingham, Massachusetts
Citizens Holding Corporation,
Keenesburg, Colorado
St. Louis
November 23, 1983
Minneapolis
December 14, 1983
Kansas City
November 21, 1983
Richmond
December 9, 1983
St. Louis
December 12, 1983
Chicago
November 30, 1983
Boston
November 25, 1983
Kansas City
November 14, 1983
City National Bank of Weatherford,
Weatherford, Oklahoma
Iowa State Bank,
Clarksville, Iowa
The First Bremen Bank,
Bremen, Ohio
Bank of Benton,
Benton, Louisiana
Bank of Clarendon Hills,
Clarendon Hills, Illinois
Peterson State Bank,
Peterson, Iowa
Kansas City
November 22, 1983
Chicago
December 9, 1983
Cleveland
December 7, 1983
Dallas
December 2, 1983
Chicago
December 2, 1983
Chicago
November 21, 1983
Army National Bancshares,
Inc.,
Chillicothe, Missouri
Aurelia FT & S Bankshares,
Inc.,
Aurelia, Iowa
B.B. Bancshares, Inc.,
Shell Knob, Missouri
Borresen Investments, Inc.,
Westbrook, Minnesota
The Carroll Bancorp.,
Norfolk, Nebraska
CB&T Financial Corp.,
Fairmont, West Virginia
Central Banc System, Inc.,
Granite City, Illinois
Central Wisconsin Bankshares,
Inc.,
Wausau, Wisconsin
Charter Financial Corporation,
Framingham, Massachusetts
The Citizens State Bank,
Keenesburg, Colorado
Citizens Holding Corporation
Employees' Stock Ownership
Plan,
Keenesburg, Colorado
City National Bancshares of
Weatherford, Inc.,
Weatherford, Oklahoma
Clarkel, Inc.,
Kesley, Iowa
Community Bancshares, Inc.,
McArthur, Ohio
East River Bancshares, Inc.,
Benton, Louisiana
Elm Bancshares, Inc.,
Elmhurst, Illinois
Everly State Bank,
Everly, Iowa
Legal Developments
63
Section 3—Continued
Applicant
Farmers and Merchants Bancorp.,
Winterset, Iowa
Farmers and Merchants Bancorp, Inc.,
Hill City, Kansas
Fidelity Kansas Bankshares,
Inc.,
Topeka, Kansas
First American Corporation,
Dundee, Illinois
First Bancshares, Incorporated,
Bartlesville, Oklahoma
First Financial Associates, Inc.,
Kenosha, Wisconsin
First Railroad & Banking Company of Georgia,
Augusta, Georgia
First Sioux Bancshares, Ltd.,
Sioux Center, Iowa
First Southern Bank Corp,
Englewood, Florida
General Educational Fund, Inc.,
Burlington, Vermont,
Golden Plains Bankshares, Inc.,
Phillipsburg, Kansas
Gulf Coast Bancshares, Inc.,
Abbeville, Louisiana
Hopkins Bankcorp, Inc.,
Wickliffe, Kentucky
Bank(s)
Farmers and Merchants State
Bank,
Winterset, Iowa
The Farmers and Merchants
Bank of Hill City,
Hill City, Kansas
Fidelity Bankshares, Inc.,
Topeka, Kansas
Fidelity State Bank and Trust
Company,
Topeka, Kansas
State Bank of Hampshire,
Hampshire, Illinois
First American Bank of Lake
County,
Lake Villa, Illinois
Exchange National Bank,
Tulsa, Oklahoma
The First National Bank of Kenosha,
Kenosha, Wisconsin
Commercial & Exchange Bank,
Bremen, Georgia
The First National Bank of Sioux
Center,
Sioux Center, Iowa
Englewood Bank of Charlotte
County,
Englewood, Florida
Merchants Bancshares, Inc.,
Burlington, Vermont
First National Bank,
Phillipsburg, Kansas
Gulf Coast Bank,
Abbeville, Louisiana
The Citizens State Bank,
Wickliffe, Kentucky
Reserve
Bank
Effective
date
Chicago
December 16, 1983
Kansas City
November 18, 1983
Kansas City
December 15, 1983
Chicago
December 12, 1983
Kansas City
December 16, 1983
Chicago
November 22, 1983
Atlanta
December 9, 1983
Chicago
December 7, 1983
Atlanta
November 23, 1983
Boston
December 9, 1983
Kansas City
November 22, 1983
Atlanta
November 25, 1983
St. Louis
December 2, 1983
A64 Federal Reserve Bulletin • January 1984
Section 3—Continued
Applicant
Bank(s)
Illini Community Bancorp, Inc.
Springfield, Illinois
First State Bank & Trust
Company of Springfield,
Springfield, Illinois
Mechanicsburg Citizens Bank,
Mechanicsburg, Illinois
Illini Community Bancgroup,
Inc.,
Springfield, Illinois
South Sangamon Banc Shares,
Inc.,
Divernon, Illinois
Stonington Banc Shares, Inc.,
Stonington, Illinois
International Bank of Commerce,
N.A.,
Zapata, Texas
MBI Bancshares, Inc.,
Kansas City, Missouri
International Bancshares Corporation,
Laredo, Texas
International Bancshares, Inc.,
Gladstone, Missouri
Metro Bancshares, Inc.,
Kansas City, Missouri
Kansas Bank System, Inc.,
Topeka, Kansas
Kansas City Bancshares, Inc.,
Kansas City, Missouri
Knox City Bancshares, Inc.,
Knox City, Texas
LaFayette Bankshares, Inc.,
LaFayette, Georgia
Learner Financial Corporation,
Orinda, California
Lexington Bancshares, Inc.,
New Ulm, Texas
The Marine Corporation,
Milwaukee, Wisconsin
Kansas State Bank of Manhattan,
Manhattan, Kansas
Citizens Bank of Appleton City,
Appleton City, Missouri
Citizens State Bank of Polk
County,
Bolivar, Missouri
Osceola Bank,
Osceola, Missouri
Tri-County State Bank of El Dorado Springs,
El Dorado Springs, Missouri
The Lowry City Bank,
Lowry City, Missouri
Humansville Bank,
Humansville, Missouri
The Citizens State Bank,
Knox City, Texas
The Bank of LaFayette,
LaFayette, Georgia
Bank of Contra Costa,
Walnut Creek, California
Scott Valley Bank,
Yreka, California
Lexington State Bank,
Lexington, Texas
The Fidelity Savings Bank of
Antigo,
Antigo, Wisconsin
Reserve
Bank
Effective
date
Chicago
December 12, 1983
Dallas
November 21, 1983
Kansas City
December 1, 1983
Kansas City
November 30, 1983
Kansas City
November 30, 1983
Dallas
December 14, 1983
Atlanta
December 6, 1983
San Francisco
November 30, 1983
Dallas
December 12, 1983
Chicago
November 30, 1983
Legal Developments
65
Section 3—Continued
Applicant
MBI Bancshares, Inc.,
Kansas City, Missouri
Merchants Bancshares, Inc.,
Burlington, Vermont
Mid-America Bancshares, Inc.,
Pleasant Hill, Missouri
NCB Financial Corporation,
Williamsport, Pennsylvania
Nodaway Valley Bancshares,
Inc.,
Maryville, Missouri
North Texas Bancshares, Inc.,
Fort Worth, Texas
Northwest Florida Banking
Corporation,
Quincy, Florida
Oak Forest Bancshares, Inc.,
Houston, Texas
Pan American Banks, Inc.,
Miami, Florida
Peoples Bankshares, Ltd.,
Waterloo, Iowa
Plainville Bancshares, Inc.,
Plainville, Kansas
Planters United Bancshares,
Inc.,
Rosebud, Texas
Plaza Bancorporation, Inc.,
Dallas, Texas
PSB Financial Corporation,
Many, Louisiana
Banks(s)
Reserve
Bank
Effective
date
The Merchants Bank,
Kansas City, Missouri
The University Bank,
Kansas City, Missouri
Broadway Bancshares, Inc.,
Kansas City, Missouri
Metropolitan Bancshares, Inc.,
Kansas City, Missouri
TBI Bancshares, Inc.,
Kansas City, Missouri
The Merchants Bank,
Burlington, Vermont
Citizens Bank of Norborne,
Norborne, Missouri
Tri-County National Bank,
Middleburg, Pennsylvania
The Nodaway Valley Bank,
Maryville, Missouri
Kansas City
December 1, 1983
Boston
December 9, 1983
Kansas City
December 1, 1983
Philadelphia
December 1, 1983
Kansas City
December 15, 1983
Hurst National Bank,
Hurst, Texas
Citizens Commercial Bank of
Tallahassee,
Tallahassee, Florida
Oak Forest Bank,
Houston, Texas
Doctor's Center International
Bank,
Houston, Texas
The International Bank of Miami,
N.A.,
Miami, Florida
La Porte City State Bank,
La Porte City, Iowa
Plainville State Bank,
Plainville, Kansas
The Planters National Bank of
Rosebud,
Rosebud, Texas
Plaza National Bank,
Dallas, Texas
The Peoples State Bank,
Many, Louisiana
Dallas
November 30, 1983
Atlanta
November 30, 1983
Dallas
November 25, 1983
Atlanta
December 1, 1983
Chicago
November 30, 1983
Kansas City
November 16, 1983
Dallas
December 2, 1983
Dallas
December 1, 1983
Dallas
November 30, 1983
A66 Federal Reserve Bulletin • January 1984
Section 3—Continued
Applicant
Seacoast Banking Corporation
of Florida,
Stuart, Florida
Seattle Bancorporation,
Seattle, Washington
Society Corporation,
Cleveland, Ohio
Southeast Mississippi Corporation,
Quitman, Mississippi
Steeleville Bancshares, Inc.,
Steeleville, Illinois
T N Bancshares, Inc.,
El Paso, Texas
United Bankers, Inc.,
Waco, Texas
United Texas Bancshares, Inc.,
Austin, Texas
VH Bancorporation, Inc.,
Minneapolis, Minnesota
The Weatherford Foundation of
Red Bay, Inc.,
Red Bay, Alabama
Western Commercial,
Fresno, California
Wyoming Bancshares, Inc.,
Wyoming, Minnesota
Bank(s)
Reserve
Bank
Effective
date
First National Bank and Trust
Company,
Stuart, Florida
The Bank of Seattle,
Seattle, Washington
The First National Bank of
Salem,
Salem, Ohio
Southeast Mississippi Bank,
Quitman, Mississippi
Atlanta
November 22, 1983
San Francisco
December 1, 1983
Cleveland
December 6, 1983
Atlanta
December 2, 1983
First National Bank of Steeleville,
Steeleville, Illinois
Texas National Bank,
El Paso, Texas
The First National Bank of Commerce,
Commerce, Texas
CenTex Bancshares, Inc.,
Cranfills Gap, Texas
Grand Marais State Bank,
Grand Marais, Minnesota
Bank of Red Bay,
Red Bay, Alabama
St. Louis
December 1, 1983
Dallas
December 19, 1983
Dallas
November 30, 1983
Dallas
December 1, 1983
Minneapolis
November 30, 1983
Atlanta
December 2, 1983
San Francisco
December 6, 1983
Minneapolis
November 22, 1983
Continential Bancorp,
Fresno, California
First State Bank of Wyoming,
Wyoming, Minnesota
Section 4
Applicant
First Union Corporation,
Charlotte, North Carolina
Nonbanking
company
Dis-Com Securities, Inc.,
Hallandale, Florida
Reserve
Bank
Richmond
Effective
date
December 19, 1983
Legal Developments
67
Sections 3 and 4
Bank(s)/Nonbanking
Company
Applicant
American Republic Bancshares,
Inc.,
Belen, New Mexico
Deerwood Bancorporation, Inc.,
Deerwood, Minnesota
Sharp Bancshares, Inc.,
Cave City, Arkansas
ORDERS APPROVED
By Federal Reserve
UNDER
BANK
MERGER
Effective
date
Kansas City
December 9, 1983
Minneapolis
November 23, 1983
St. Louis
December 14, 1983
ACT
Banks
Applicant
Davenport Bank and Trust
Company,
Davenport, Iowa
First Virginia Bank-Central,
Charlottesville, Virginia
First Virginia Bank-Eastern
Shore,
Onancock, Virginia
Farmers State Bank of Irene,
Irene, South Dakota
First Georgia Bank,
Atlanta, Georgia
Northwestern Bank of Commerce,
Duluth, Minnesota
Northwest Interim Bank,
Tallahassee, Flordia
The First National Bank of
Belen,
Belen, New Mexico
Scientific Management Systems,
Inc.,
Belen, New Mexico
First National Bank of Deerwood,
Deerwood, Minnesota
general insurance activities
Bank of Cave City,
Cave City, Arkansas
to engage de novo, in real
estate appraising
Reserve
Bank
Bank(s)
Security State Trust and Savings
Bank,
Bettendorf, Iowa
First Virginia Bank of Orange,
Orange, Virginia
The Peoples Trust Bank,
Exmore, Virginia
Viborg Branch, United National
Bank,
Sioux Falls, South Dakota
Capital City Bank,
Hopeville, Georgia
North Shore State Bank,
Duluth, Minneosta
Citizens Commercial Bank of
Tallahassee,
Tallahassee, Florida
Reserve
Bank
Effective
date
Chicago
December 9, 1983
Richmond
December 1, 1983
Richmond
December 6, 1983
Minneapolis
D e c e m b e r 9, 1983
Atlanta
November 20, 1983
Minneapolis
November 29, 1983
Atlanta
November 30, 1983
A68 Federal Reserve Bulletin • January 1984
PENDING
CASES INVOLVING
THE BOARD
OF
GOVERNORS
This list of pending cases does not include suits against
Governors is not named a party.
Independent Insurance Agents of America, Inc. and
Independent Insurance Agents of Missouri, Inc. v.
Board of Governors, filed June 1983, U.S.C. A. for
the Eighth Circuit (two cases).
The Committee for Monetary Reform, et al., v. Board
of Governors, filed June 1983, U.S.D.C. for the
District of Columbia.
Dakota Bankshares, Inc. v. Board of Governors, filed
May 1983, U.S.C.A. for the Eighth Circuit.
Jet Courier Services, Inc., et al. v. Federal Reserve
Bank of Atlanta,
et al. filed February 1983,
U.S.C.A. for the Sixth Circuit.
Securities Industry Association v. Board of Governors, et al., filed February 1983, U.S.C.A. for the
Second Circuit.
Flagship Banks, Inc. v. Board of Governors, filed
January 1983, U.S.D.C. for the District of Columbia.
Flagship Banks, Inc. v. Board of Governors, filed
October 1982, U . S . D . C . for the District of Columbia.
Association
of Data Processing Service
Organizations, Inc., et al. v. Board of Governors,
filed
August 1982, U.S.C.A. for the District of Columbia.
Richter v. Board of Governors, et al. filed May 1982,
U.S.D.C. for the Northern District of Illinois.
Wyoming Bancorporation v. Board of Governors, filed
May 1982, U.S.C.A. for the Tenth Circuit.
First Bancorporation
v. Board of Governors, filed
April 1982, U.S.C.A. for the Tenth Circuit.
the Federal Reserve
Banks in which the Board
of
Charles G. Vick v. Paul A. Volcker, et al., filed March
1982, U.S.D.C. for the District of Columbia.
Jolene Gustafson v. Board of Governors, filed March
1982, U.S.C.A. for the Fifth Circuit.
Edwin F. Gordon v. Board of Governors, et al., filed
October 1981, U . S . C . A . for the Eleventh Circuit
(two consolidated cases).
Allen Wolf son v. Board of Governors, filed September
1981, U.S.D.C. for the Middle District of Florida.
Bank Stationers Association, Inc., et al. v. Board of
Governors, filed July 1981, U.S.D.C. for the Northern District of Georgia.
Public Interest Bounty Hunters v. Board of Governors, et al., filed June 1981, U.S.D.C. for the
Northern District of Georgia.
First Bank & Trust Company v. Board of Governors,
filed February 1981, U.S.D.C. for the Eastern District of Kentucky.
9 to 5 Organization for Women Office Workers v.
Board of Governors,
filed D e c e m b e r 1980,
U.S.D.C. for the District of Massachusetts.
Securities Industry Association
v. Board of Governors, et al., filed October 1980, U.S.C.A. for the
District of Columbia.
A. G. Becker, Inc. v. Board of Governors, et al., filed
October 1980, U.S.C.A. for the District of Columbia.
A. G. Becker, Inc. v. Board of Governors, et al., filed
August 1980, U.S.C.A. for the District of Columbia.
Berkovitz, et al. v. Government of Iran, et al., filed
June 1980, U.S.D.C. for the Northern District of
California.
A1
Financial and Business Statistics
CONTENTS
Domestic
A3
A4
A5
A5
Financial
Statistics
Monetary aggregates and interest rates
Reserves of depository institutions, Reserve
Bank credit
Reserves and borrowings of depository
institutions
Federal funds and repurchase agreements of
large member banks
WEEKLY REPORTING COMMERCIAL BANKS
Assets and liabilities
A18
All reporting banks
A19
Banks with assets of $1 billion or more
A20
Banks in New York City
A21
Balance sheet memoranda
A22
Branches and agencies of foreign banks
A23 Gross demand deposits of individuals,
partnerships, and corporations
POLICY INSTRUMENTS
FINANCIAL MARKETS
A6
A7
A8
A9
Federal Reserve Bank interest rates
Reserve requirements of depository institutions
Maximum interest rates payable on time and
savings deposits at federally insured institutions
Federal Reserve open market transactions
FEDERAL RESERVE BANKS
A10 Condition and Federal Reserve note statements
A l l Maturity distribution of loan and security
holdings
A24 Commercial paper and bankers dollar
acceptances outstanding
A24 Prime rate charged by banks on short-term
business loans
A25 Terms of lending at commercial banks
A26 Interest rates in money and capital markets
A27 Stock market—Selected statistics
A28 Selected financial institutions—Selected assets
and liabilities
FEDERAL FINANCE
MONETAR Y AND CREDIT AGGREGATES
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock measures and components
A14 Bank debits and deposit turnover
A15 Loans and securities of all commercial banks
COMMERCIAL BANKING INSTITUTIONS
A16 Major nondeposit funds
A17 Assets and liabilities, last-Wednesday-of-month
series
A29
A30
A31
A31
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
A32 U.S. government securities dealers—
Transactions, positions, and financing
A3 3 Federal and federally sponsored credit
agencies—Debt outstanding
A2
Federal Reserve Bulletin • January 1984
International
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
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
REAL ESTATE
A38 Mortgage markets
A39 Mortgage debt outstanding
CONSUMER INSTALLMENT CREDIT
A40 Total outstanding and net change
A41 Terms
A42 Funds raised in U.S. credit markets
A43 Direct and indirect sources of funds to credit
markets
Nonfinancial
Statistics
A44 Nonfinancial business activity—Selected
measures
A44 Output, capacity, and capacity utilization
A45 Labor force, employment, and unemployment
A46 Industrial production—Indexes and gross value
A48 Housing and construction
A49 Consumer and producer prices
A50 Gross national product and income
A51 Personal income and saving
A52
A53
A53
A53
U.S. international transactions—Summary
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
A54 Foreign branches of U.S. banks—Balance sheet
data
A56 Selected U.S. liabilities to foreign official
institutions
REPORTED BY BANKS IN THE UNITED STATES
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A60 Banks' own claims on unaffiliated foreigners
A61 Claims on foreign countries—Combined
domestic offices and foreign branches
A56
A57
A59
A60
REPORTED BY NONBANKING BUSINESS
ENTERPRISES IN THE UNITED STATES
A62 Liabilities to unaffiliated foreigners
A63 Claims on unaffiliated foreigners
FLOW OF FUNDS
Domestic
Statistics
SECURITIES HOLDINGS AND TRANSACTIONS
A64 Foreign transactions in securities
A65 Marketable U.S. Treasury bonds and notes—
Foreign holdings and transactions
INTEREST AND EXCHANGE RATES
A65 Discount rates of foreign central banks
A66 Foreign short-term interest rates
A66 Foreign exchange rates
A67 Guide to Tabular
Statistical Releases,
Tables
Presentation,
and Special
Domestic Financial Statistics
1.10
A3
MONETARY AGGREGATES A N D INTEREST RATES
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent)1
Item
1982
Q4
1983
Q2
QI
1983
Q3
July
Aug.
Sept.
Oct.
Nov.
1
2
3
4
Reserves of depository institutions
Total
Required
Nonborrowed
Monetary base2
11.8
10.8
13.6
8.2
4.1
3.8
3.5
9.5
12.4
12.6
6.2
11.1
4.7
4.6
1.8
7.6
6.0
5.2
12.4
5.1
-3.4
-1.5
-6.6
6.4
.7
-1.5'
4.2
9.1
-3.0
-3.2
16.7
7.6
-6.9
-7.8
-9.1
6.1
5
6
7
8
Concepts of money and liquid assets3
Ml
M2
M3
L
13.1
9.3
9.5
8.6
14.1
20.3
10.2 r
12.5
12.2
10.1
8.1
9.5''
8.9
7.8
8.3
10.8'
8.9
6.8
5.5
11.5'
2.8
6.0
8.6
10.8'
.9
4.8
7.4
n.a.
1.9
9.1'
8.3'
n.a.
.7
7.8
12.0
n.a.
5.3
13.4
-.5
-2.0
6.2
14.2
-43.4
-48.5
-53.9
12.1
3.0
-14.8
24.1
-24.8
16.0
6.1
-6.8
14.9
-8.5
13.7
6.6
-10.2
24.8
-8.8
14.6
5.7
-11.2
22.4
-2.9
13.5
6.0
-8.7
17.3
-3.8
12.5
3.1
-10.5
23.1
21.6
13.1
13.8
-7.9
21.7
11.2
11.3
6.3
10.7
9.9
8.6
9.7
11.2
4.9
9.9
13.7
Time and savings deposits
Commercial banks
9 Total 4
10 Savings
11 Small-denomination time56
12 Large-denomination
time
13 Thrift institutions7
14 Total loans and securities at commercial banks8
Interest rates (levels, percent per annum)
1983
Q1
15
16
17
18
Short-term rates
Federal funds 9
Discount window borrowing10
Treasury bills (3-month, secondary
market)1
Commercial paper (3-month)1112
19
20
21
22
Long-term rates
Bonds
U.S. government13
..
State and local government
Aaa utility (new issue) 6
Conventional mortgages'
Q3
8.65
8.50
8.11
8.34
10.87
9.43
11.89
13.26
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter.
2. Includes reserve balances at Federal Reserve Banks in the current week
plus vault cash held two weeks earlier used to satisfy reserve requirements at all
depository institutions plus currency outside the U.S. Treasury, Federal Reserve
Banks, the vaults of depository institutions, and surplus vault cash at depository
institutions.
3. Ml: Averages of daily figures for(l) 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) negotiable order of withdrawal (NOW) and automatic transfer service
(ATS) accounts at banks and thrift institutions, credit union share draft (CUSD)
accounts, and demand deposits at mutual savings banks.
M2: Ml plus money market deposit accounts (MMDAs), savings and smalldenomination time deposits at all depository institutions, overnight repurchase
agreements at commercial banks, overnight Eurodollars held by U.S. residents
other than banks at Caribbean branches of member banks, and balances of money
market mutual funds (general purpose and broker/dealer).
M3: M2 plus large-denomination time deposits at all depository institutions
and term RPs at commercial banks and savings and loan associations and balances
of institution-only money market mutual funds.
L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents
other than banks, bankers acceptances, commercial paper, Treasury bills and
other liquid Treasury securities, and U.S. savings bonds.
4. Savings deposits exclude NOW and ATS accounts at commercial banks
and thrifts and CUSD accounts at credit unions.
Q2
1983
10.81
9.23
11.46
13.16
Q4
9.46
8.50
9.14
9.34
9.43
8.50
11.79
9.61
12.39
13.83
Aug.
Sept.
Oct.
9.21
9.56
8.50
9.34
9.54
9.45
8.50
9.00
9.24
9.48
8.50
8.64
8.99
11.90
9.77
12.51
13.47
11.96
9.72
12.25
13.90
11.82
11.77
9.66
12.43
13.52
8.80
9.58
12.53
13.60
5. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000.
6. Large-denomination time deposits are those issued in amounts of $100,000
or more.
7. Savings and loan associations, mutual savings banks, and credit unions.
8. Changes calculated from figures shown in table 1.23. Beginning December
1981, growth rates reflect shifts of foreign loans and securities from U.S. banking
offices to international banking facilities.
9. Averages of daily effective rates (average of the rates on a given date
weighted by the volume of transactions at those rates).
10. Rate for the Federal Reserve Bank of New York.
11. Quoted on a bank-discount basis.
12. Unweighted average of offering rates quoted by at least five dealers.
13. Market yields adjusted to a 20-year maturity by the U.S. Treasury.
14. Bond Buyer series for 20 issues of mixed quality.
15. Weighted averages of new publicly offered bonds rated Aaa, Aa, and A by
Moody's Investors Service and adjusted to an Aaa basis. Federal Reserve
compilations.
16. Average rates on new commitments for conventional first mortgages on
new homes in primary markets, unweighted and rounded to nearest 5 basis points,
from Department of Housing and Urban Development.
NOTE. Revisions in reserves of depository institutions reflect the transitional
phase-in of reserve requirements as specified in the Monetary Control Act of
1980.
A4
1.11
DomesticNonfinancialStatistics • January 1984
RESERVES OF DEPOSITORY INSTITUTIONS, RESERVE BANK CREDIT
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week ending
1983
1983
Factors
Nov. 16
Nov. 23
Nov. 30
Dec. 21 p Dec. 28p
Oct.
Nov.
Dec.
169,202
167,773'
171,531
168,222
168,623'
169,040
168,837
169,687
173,460
172,988
149,300
147,045
2,255
8,936
8,734
202
131
837
1,313
8,685
11,127
4,618
13,786
148,005
147,775
230
8,762
8,714
48
54
912'
1,592'
8,448
11,123
4,618
13,786
151,679
151,517
162
8,673
8,646
27
34
748
2,127
8,270
11,123
4,618
13,786
147,910
147,910
0
8,729
8,729
0
0
1,021
2,012
8,551
11,123
4,618
13,786
149,723
148,737
986
8,935
8,730
205
233
813'
1,095'
7,824
11,123
4,618
13,786
149,688
149,688
0
8,659
8,659
0
0
877'
1,736'
8,081
11,123
4,618
13,786
150,402
150,402
0
8,647
8,647
0
0
438
1,343
8,008
11,123
4,618
13,786
150,671
150,671
0
8,646
8,646
0
0
629
1,583
8,159
11,123
4,618
13,786
153,770
153,770
0
8,645
8,645
0
0
1,059
1,684
8,301
11,123
4,618
13,786
151,498
151,498
0
8,645
8,645
0
0
757
3,610
8,479
11,123
4,618
13,786
162,578
475
165,317
481
168,284
471
165,634
484
165,646
483
166,430
479
166,612
474
167,713
473
168,295
473
169,685
471
6,916
216
614
2,905
238
596
3,591
220
594
3,207
235
592
2,441
239
551
2,881
258
612
3,143
221
589
3,266
197
581
4,108
237
620
3,729
224
528
Dec. 7
Dec. 14
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding
2
3
4
5
6
7
8
9
10
11
12
13
14
U.S. government securities1
Bought outright
Held under repurchase agreements
Federal agency securities
Bought outright
Held under repurchase agreements
Acceptances
Loans
Float
Other Federal Reserve assets
Gold stock
Special drawing rights certificate account .
Treasury currency outstanding
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserves, with Federal
Reserve Banks
17 Treasury
18 Foreign
19 Other
20 Service-related balances and adjustment...
21 Other Federal Reserve liabilities and
capital
22 Reserve accounts2
1,185
1,237
1,477
1,347
1,252'
1,237
1,254
1,484
1,504
1,351
5,689
21,059
5,584
20,943'
5,598
20,822
5,550
20,700
5,604
21,935'
5,542
21,127
5,464
20,605
5,617
19,883
5,682
22,067
5,654
20,873
End-of-month figures
Wednesday figures
1983
1983
Nov. 23
Nov. 30
167,698
171,750
168,481
169,694
171,971
174,928
174,318
147,158
147,158
0
8,730
8,730
0
0
1,534
2,434
7,842
151,512
151,512
0
8,730
8,730
0
0
1,489
1,698
8,321
149,439
149,439
0
8,647
8,647
0
0
1,059
898
8,438
149,545
149,545
0
8,647
8,647
0
0
491
2,840
8,171
150,055
150,055
0
8,645
8,645
0
0
2,431
2,522
8,318
152,379
152,379
0
8,645
8,645
0
0
1,132
4,232
8,540
152,570
152,570
0
8,645
8,645
0
0
1,311
3,055
8,737
11,121
4,618
13,786
11,123
4,618
13,786
11,123
4,618
13,786
11,123
4,618
13,786
11,123
4,618
13,786
11,123
4,618
13,786
11,123
4,618
13,786
11,123
4,618
13,786
166,682
475
170,005
463
165,665
483
166,330
480
166,682
475
167,197
473
168,146
473
169,033
472
170,616
462
4,841
339
749
956
2,8%
360
610
983
3,661
191
845
1,013
3,315
269
572
984
2,689
197
553
986
2,8%
360
610
983
4,162
309
579
1,004
2,839
232
540
1,018
4,621
287
531
1,023
3,636
263
597
1,018
5,691
19,227
5,432
20,569
5,394
20,413
5,420
20,517
5,440
24,602
5,432
20,569
5,439
20,057
5,432
22,817
5,499
22,989
5,4%
21,756
Oct.
Nov.
Dec.
165,267
168,481
172,460
146,0%
146,096
0
8,731
8,731
0
0
387
750
9,303
149,439
149,439
0
8,647
8,647
0
0
1,059
898
8,438
151,942
150,558
1,384
8,853
8,645
208
418
918
1,563
8,766
11,126
4,618
13,786
11,123
4,618
13,786
162,515
478
Nov. 16
Dec. 7
Dec. 14
Dec. 21
Dec. 28
SUPPLYING RESERVE FUNDS
23 Reserve Bank credit outstanding
24
25
26
27
28
29
30
31
32
33
U.S. government securities1
Bought outright
Held under repurchase agreements
Federal agency securities
Bought outright
Held under repurchase agreements
Acceptances
Loans
Float
Other Federal Reserve assets
34 Gold stock
35 Special drawing rights certificate account .
36 Treasury currency outstanding
ABSORBING RESERVE FUNDS
37 Currency in circulation
38 Treasury cash holdings
Deposits, other than reserves, with Federal
Reserve Banks
39 Treasury
40 Foreign
41 Other
42 Service-related balances and adjustment...
43 Other Federal Reserve liabilities and
capital
44 Reserve accounts2
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. Excludes required clearing balances,
NOTE. For amounts of currency and coin held as reserves, see table 1.12.
Depository
1.12
RESERVES A N D BORROWINGS
Institutions
A5
Depository Institutions
Millions of dollars
Monthly averages of daily figures
Reserve classification
1981
1982
Dec.
Dec.
1 Reserve balances with Reserve Banks 1
2 Total vault cash (estimated)
3 Vault cash at institutions with required
reserve balances 2
4 Vault cash equal to required reserves at
other institutions
5 Surplus vault cash at other institutions 3
6 Reserve balances + total vault cash 4
7 Reserve balances + total vault cash used
to satisfy reserve requirements4-5
8 Required reserves (estimated)
9 Excess reserve balances at Reserve Banks 4 6
10 Total borrowings at Reserve Banks
11
Seasonal borrowings at Reserve Banks
12
Extended credit at Reserve Banks
1983
May
July
June
Aug.
Sept.
Oct.
Nov./1
Dec.?
26,163
19,538
24,804
20,392
22,010
19,710
21,808
20,098
22,139
20,413
21,965
20,035
20,585
20,798
21,059
20,471
20,943
20,558
20,822
21,210
13,577
14,292
13,339
13,593
13,647
13,656
13,927
13,866
14,014
14,692
2,178
3,783
45,701
2,757
3,343
45,196
2,933
3,438
41,720
3,014
3,491
41,906
3,161
3,605
42,552
3,039
3,340
42,000
3,404
3,467
41,383
3,212
3,393
41,530
3,187
3,357
41,501
3,211
3,307
42,032
41,918
41,606
312
642
53
149
41,853
41,353
500
697
33
187
38,282
37,833
449
902
98
514
38,415
37,935
480
1,714
121
964
38,947
38,440
507
1,382
172
572
38,660
38,214
446
1,573
198
490
37,916
37,418
498
1,441
191
515
38,137
37,632
505
837
142
255
38,144
37,615
529
912
119
6
38,725
38,327
398
748
96
2
Weekly averages of daily figures for week ending
1983
Oct. 26
13 Reserve balances with Reserve Banks'
14 Total vault cash (estimated)
15 Vault cash at institutions with required
reserve balances 2
16 Vault cash equal to required reserves at
other institutions
17 Surplus vault cash at other institutions3
18 Reserve balances + total vault cash 4
19 Reserve balances + total vault cash used
to satisfy reserve requirements 4 5
20 Required reserves (estimated)
21 Excess reserve balances at Reserve Banks 4 ' 6
22 Total borrowings at Reserve Banks
23
Seasonal borrowings at Reserve Banks
24
Extended credit at Reserve Banks
Nov. 2
Nov. 9
Nov. 23
Nov. 30
Dec. 7
Dec. 14
Dec. 21P
Dec. 28p
22,028
19,676
20,689
20,910
20,081
20,949
20,700
20,956
21,935
19,190
21,127
21,036
20,605
20,929
19,883
20,348
22,067
20,357
20,873
21,362
13,737
14,175
14,014
13,936
13,650
14,409
14,355
14,715
14,516
14,975
2,867
3,072
41,704
3,337
3,398
41,599
3,341
3,594
41,030
3,397
3,623
41,656
2,672
2,868
41,125
3,298
3,329
42,163
3,216
3,358
41,534
3,843
1,790
40,231
2,862
2,979
42,424
3,168
3,219
42,235
38,632
38,178
454
565
144
5
38,201
37,827
374
440
128
5
37,436
36,856
580
1,042
123
3
38,033
37,388
645
1,021
112
4
38,257
37,958
299
813
123
4
38,834
38,198
636
877
123
13
38,176
37,671
505
438
89
2
38,441
37,954
487
629
89
1
39,445
38,749
696
1,059
100
1
39,016
38,540
476
757
115
3
1. As of Aug. 13, 1981, excludes required clearing balances of all depository
institutions.
2. Before Nov. 13, 1980, the figures shown reflect only the vault cash held by
member banks.
3. Total vault cash at institutions without required reserve balances less vault
cash equal to their required reserves.
4. Adjusted to include waivers of penalties for reserve deficiencies in accordance with Board policy, effective Nov. 19, 1975, of permitting transitional relief on
a graduated basis over a 24-month period when a nonmember bank merged into an
1.13
Nov. 16
existing member bank, or when a nonmember bank joins the Federal Reserve
System. For weeks for which figures are preliminary, figures by class of bank do
not add to total because adjusted data by class are not available.
5. Reserve balances with Federal Reserve Banks, which exclude required
clearing balances plus vault cash at institutions with required reserve balances
plus vault cash equal to required reserves at other institutions.
6. Reserve balances with Federal Reserve Banks, which exclude required
clearing balances plus vault cash used to satisfy reserve requirements less
required reserves. (This measure of excess reserves is comparable to the old
excess reserve concept published historically.)
FEDERAL F U N D S A N D REPURCHASE AGREEMENTS
Large Member Banks'
Averages of daily figures, in millions of dollars
1983, week ending Wednesday
By maturity and source
Nov. 2
One day and continuing contract
1 Commercial banks in United States
2 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies .
3 Nonbank securities dealers
4 All other
All other maturities
5 Commercial banks in United States
6 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies .
7 Nonbank securities dealers
8 All other
MEMO: Federal funds and resale agreement loans in
maturities of one day or continuing contract
9 Commercial banks in United States
10 Nonbank securities dealers
1. Banks with assets of $1 billion or more as of Dec. 31, 1977.
Nov. 9
Nov. 16
Nov. 23
Nov. 30
Dec. 7
Dec. 14
Dec. 21
Dec. 28
57,632
62,938
61,398
58,521
56,874r
63,144
60,397
57,272
55,384
24,771
5,476
26,346
25,933
5,573
25,643
25,820
5,668
26,210
25,938
5,294
25,907
24,783
4,792
23,464
25,258
5,174
26,838
24,655
5,479
26,580
23,800
5,577
26,514
21,435
5,382
23,791
5,728
6,768
6,571
6,328
6,917
6,034
6,314
6,348
6,464
8,484
6,433
9,453
9,505
7,353
9,932
9,194
7,446
9,901
9,509
7,427
10,934
10,040
7,564
13,546
9,889
6,724
10,359
10,242
6,740
10,069
9,835
6,826
8,795
10,095
6,786
12,788
24,825
4,933
25,385
4,857
24,614
5,022
23,948
5,428
23,504
4,286
25,143
4,514
23,381
4,712
22,443
4,634
22,921
4,319
A6
1.14
DomesticNonfinancialStatistics • January 1984
FEDERAL RESERVE B A N K INTEREST RATES
Percent per annum
Current and previous levels
Extended credit1
Short-term adjustment credit
and seasonal credit
Federal Reserve
Bank
Rate on
12/31/83
m
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City . . . .
Dallas
San Francisco...
m
First 60 days
of borrowing
Next 90 days
of borrowing
Effective
date
Previous
rate
Rate on
12/31/83
Previous
rate
Rate on
12/31/83
Previous
rate
12/14/82
12/15/82
12/17/82
12/15/82
12/15/82
12/14/82
9
8'/^
9
9'/2
10
12/14/82
12/14/82
12/14/82
12/15/82
12/14/82
12/14/82
9
m
9!h
Range of rates in recent years
Effective date
In effect Dec. 31, 1973
1974— Apr. 25
30
Dec. 9
16
1975— Jan.
6
10
24
Feb. 5
7
Mar. 10
14
May 16
23
1976— Jan. 19
23
Nov. 22
26
1977— Aug. 30
31
Sept. 2
Oct. 26
1978— Jan.
9
20
May 11
12
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
7 Vi
m
V/2-»
8
73/4-8
73/4
714-73/4
7>/4-73/4
71/4
63/4-71/4
63/4
6'/4-63/4
6!/4
6-61/4
6
5'/2-6
51/2 l
5'/4-5 /i
51/4
51/4-53/4
51/4-53/4
53/4
6
73/4
73/4
73/4
71/4
7V4
63/4
63/4
61/4
6'/4
6
6
5'/!
51/4
51/4
5V*
53/4
53/4
6
6 Vi
6'/2-7
7
7
7
1978— July
3
10
6—6
/l2
l
6 /2
Effective date
6>/2
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
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
1. 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. See section 201.3(b)(2) of Regulation A.
2. 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,
and 1981.
After 150 days
\m
7-71/4
7'/4
73/4
8
8-8'/2
81*
8^-91/2
91/2
10-101/!
10'/!
10'/!-] 1
11
101/5
F.R.
Bank
of
N.Y.
71/4
71/4
73/4
8
81/2
81/2
9Vi
9'/2
10
10 l/i
10'/>
Effective date
• May
5
8
Nov. 2
6
Dec.
4
-July 20
23
Aug. 2
3
16
12
27
30
Oct. 12
13
Nov. 22
13
12-13
13
13
13
Dec. 14
15
17
11-12
11
11
11
11-12
12
12-13
12
10-11
10
11
Previous
rate
12/14/82
12/15/82
12/17/82
12/15/82
12/15/82
12/14/82
12/14/82
12/14/82
12/14/82
12/15/82
12/14/82
12/14/82
11
2
Range (or
level)—
All F.R.
Banks
10
10
Rate on
12/31/83
Effective date
for current rates
11
11
12
12
11
26
Range (or
level)—
All F.R.
Banks
13-14
14
13-14
13
12
F.R.
Bank
of
N.Y.
14
14
13
13
12
UVl
\\Vl
11-11V2 11
11
11
10 Vl
IOV2
111/2-12
11 Vl
10-10'/2
10
91/2-10
10
10
9-9 V'2
9
8W-9
81/2-9
81/2
9
9
9
91h
91/2
9'/2
m
8 V2
10
10
11
12
12
12-13
13
13
13
In effect Dec. 31, 1983
m
8>/2
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 INSTITUTIONS'
Percent of deposits
Type of deposit, and
deposit interval
Member bank requirements
before implementation of the
Monetary Control Act
Percent
Net demand2
$10 million-$100 million
$100 million-$400 million
Over $400 million
Time and savings2^
Savings
Time4
$0 million-$5 million, by maturity
30-179 days
180 days to 4 years
4 years or more
Over $5 million, by maturity
30-179 days
180 days to 4 years
4 years or more
Depository institution requirements
after implementation of the
Monetary Control Act6
Percent
Effective date
3
12
12/29/83
12/29/83
Nonpersonal time deposits
By original maturity
Less than 1 xh years
1 Vi years or more
3
0
10/6/83
10/6/83
Eurocurrency liabilities
All types
3
11/13/80
Effective date
7,8
7
9>/2
113/4
123/4
161/4
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
3
3/16/67
3
2V2
1
3/16/67
1/8/76
10/30/75
6
21/2
1
12/12/74
1/8/76
10/30/75
1. For changes in reserve requirements beginning 1963, see Board's Annual
Statistical Digest, 1971-1975, and for prior changes, see Board's Annual Report
for 1976, table 13. Under provisions of the Monetary Control Act, depository
institutions include commercial banks, mutual savings banks, savings and loan
associations, credit unions, agencies and branches offoreign banks, and Edge Act
corporations.
2. Requirement schedules are graduated, and each deposit interval applies to
that part of the deposits of each bank. Demand deposits subject to reserve
requirements were gross demand deposits minus cash items in process of
collection and demand balances due from domestic banks.
The Federal Reserve Act as amended through 1978 specified different ranges of
requirements for reserve city banks and for other banks. Reserve cities were
designated under a criterion adopted effective Nov. 9, 1972, by which a bank
having net demand deposits of more than $400 million was considered to have the
character of business of a reserve city bank. The presence of the head office of
such a bank constituted designation of that place as a reserve city. Cities in which
there were Federal Reserve Banks or branches were also reserve cities. Any
banks having net demand deposits of $400 million or less were considered to have
the character of business of banks outside of reserve cities and were permitted to
maintain reserves at ratios set for banks not in reserve cities.
Effective Aug. 24, 1978, the Regulation M reserve requirements on net balances
due from domestic banks to their foreign branches and on deposits that foreign
branches lend to U.S. residents were reduced to zero from 4 percent and 1 percent
respectively. The Regulation D reserve requirement of borrowings from unrelated
banks abroad was also reduced to zero from 4 percent.
Effective with the reserve computation period beginning Nov. 16, 1978,
domestic deposits of Edge corporations were subject to the same reserve
requirements as deposits of member banks.
3. Negotiable order of withdrawal (NOW) accounts and time deposits such as
Christmas and vacation club accounts were subject to the same requirements as
savings deposits.
The average reserve requirement on savings and other time deposits before
implementation of the Monetary Control Act had to be at least 3 percent, the
minimum specified by law.
4. Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent
was imposed on large time deposits of $100,000 or more, obligations of affiliates,
and ineligible acceptances. This supplementary requirement was eliminated with
the maintenance period beginning July 24, 1980.
Effective with the reserve maintenance period beginning Oct. 25, 1979, a
marginal reserve requirement of 8 percent was added to managed liabilities in
excess of a base amount. This marginal requirement was increased to 10 percent
beginning Apr. 3, 1980, was decreased to 5 percent beginning June 12, 1980, and
was eliminated beginning July 24, 1980. Managed liabilities are defined as large
time deposits, Eurodollar borrowings, repurchase agreements against U.S.
government and federal agency securities, federal funds borrowings from nonmember institutions, and certain other obligations. In general, the base for the
marginal reserve requirement was originally the greater of (a) $100 million or (b)
the average amount of the managed liabilities held by a member bank, Edge
corporation, or family of U.S. branches and agencies of a foreign bank for the two
reserve computation periods ending Sept. 26, 1979. For the computation period
beginning Mar. 20,1980, the base was lowered by (a) 7 percent or (b) the decrease
in an institution's U.S. office gross loans to foreigners and gross balances due
from foreign offices of other institutions between the base period (Sept. 13-26,
1979) and the week ending Mar. 12, 1980, whichever was greater. For the
computation period beginning May 29, 1980, the base was increased by 7'/2
percent above the base used to calculate the marginal reserve in the statement
week of May 14-21, 1980. In addition, beginning Mar. 19, 1980, the base was
reduced to the extent that foreign loans and balances declined.
Type of deposit, and
deposit interval5
Net transaction accounts
$0-$28.9 million
Over $28.9 million
9
5. The Garn-St Germain Depository Institutions Act of 1982 (Public Law 97320) provides 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 liabilities subject to this zero percent reserve requirement each year for the next 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. No corresponding adjustment is to be
made in the event of a decrease. Effective Dec. 9, 1982, the amount of the
exemption was established at $2.1 million. Effective with the reserve maintenance
period beginning Jan. 12, 1984, the amount of the exemption is $2.2 million. In
determining the reserve requirements of a depository institution, the exemption
shall apply in the following order: (1) nonpersonal money market deposit accounts
(MMDAs) authorized under 12 CFR section 1204.122; (2) net NOW accounts
(NOW accounts less allowable deductions); (3) net other transaction accounts;
and (4) 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.
6. For nonmember banks and thrift institutions that were not members of the
Federal Reserve System on or after July 1, 1979, a phase-in period ends Sept. 3,
1987. For banks that were members on or after July 1, 1979, but withdrew on or
before Mar. 31, 1980, the phase-in period established by Public Law 97-320 ends
on Oct. 24, 1985. For existing member banks the phase-in period is about three
years, depending on whether their new reserve requirements are greater or less
than the old requirements. All new institutions will have a two-year phase-in
beginning with the date that they open for business, except for those institutions
that have total reservable liabilities of $50 million or more.
7. 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 offered by institutions not subject to the
rules of the Depository Institutions Deregulation Committee (DIDC) 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.)
8. 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. 31,
1981, the amount was increased accordingly from $25 million to $26 million; and
effective Dec. 30, 1982, to $26.3 million; and effective Dec. 29, 1983, to $28.9
million.
9. 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.
NOTE. 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.
A8
1.16
DomesticNonfinancialStatistics • January 1984
MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions 1
Percent per annum
Type of deposit
Commercial banks
Savings and loan associations and
mutual savings banks (thrift institutions)1
In effect Dec. 31, 1983
In effect Dec. 31, 1983
Percent
1
2
3
4
Savings
Negotiable order of withdrawal accounts
Negotiable order of withdrawal2 accounts of $2,500 or more2
Money market deposit account
Time accounts by maturity
5 7-31 days of less than $2,5004
6 7-31 days of $2,500 or more2
7 More than 31 days
1. Effective Oct. 1, 1983, restrictions on the maximum rates of interest payable
by commercial banks and thrift institutions on various categories of deposits were
removed. For information regarding previous interest rate ceilings on all categories of accounts see earlier issues of the FEDERAL RESERVE BULLETIN, the
Federal Home Loan Bank Board Journal, and the Annual Report of the Federal
Deposit Insurance Corporation before November 1983.
2. Effective Dec. 1, 1983, IRA/Keogh (HR10) Plan accounts are not subject to
minimum deposit requirements.
3. Effective Dec. 14, 1982, depository institutions are authorized to offer a new
account with a required initial balance of $2,500 and an average maintenance
balance of $2,500 not subject to interest rate restrictions. No minimum maturity
5'/4
51/4
51/4
Effective date
Effective date
7/1/79
12/31/80
1/5/83
12/14/82
5V2
5Va
7/1/79
12/31/80
1/5/83
12/14/82
9/1/82
1/5/83
10/1/83
SV2
9/1/82
1/5/83
10/1/83
period is required for this account, but depository institutions must reserve the
right to require seven days notice before withdrawals. When the average balance
is less than $2,500, the account is subject to the maximum ceiling rate of interest
for NOW accounts; compliance with the average balance requirement may be
determined over a period of one month. Depository institutions may not guarantee
a rate of interest for this account for a period longer than one month or condition
the payment of a rate on a requirement that the funds remain on deposit for longer
than one month.
4. Deposits of less than $2,500 issued to governmental units continue to be
subject to an interest rate ceiling of 8 percent.
Policy Instruments
1.17
A9
FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1983
Type of transaction
1981
1980
1982
May
June
Aug.
July
Sept.
Oct.
Nov.
U . S . GOVERNMENT SECURITIES
Outright transactions (excluding matched
transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
7,668
7,331
0
3,389
13,899
6,746
0
1,816
17,067
8,369
0
3,000
516
0
0
0
1,721
0
0
0
666
0
0
0
1,768
289
0
0
3,184
214
0
500
309
0
0
0
1,435
0
0
700
912
0
12,427
-18,251
0
317
23
13,794
-12,869
0
312
0
17,295
-14,164
0
173
0
1,795
-1,842
0
0
0
1,398
-916
87
156
0
1,162
0
0
0
0
2,212
-5,344
0
0
0
902
-753
0
0
0
529
-636
0
155
0
2,828
-2,930
0
10
11
12
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
2,138
0
-8,909
13,412
1,702
0
-10,299
10,117
1,797
0
-14,524
11,804
595
0
-41
1,367
0
0
-1,398
916
481
0
-1,121
0
0
0
-2,212
3,130
0
0
-902
753
0
0
-256
636
820
0
-1,689
1,796
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
703
0
-3,092
2,970
393
0
-3,495
1,500
388
0
-2,172
2,128
326
0
-1,754
300
0
0
0
0
215
0
-41
0
0
0
516
1,300
0
0
0
0
0
0
-273
0
349
0
-980
700
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
811
0
-426
1,869
379
0
0
1,253
307
0
-601
234
108
0
0
175
0
0
0
0
124
0
0
0
0
0
-516
914
0
0
0
0
0
0
0
0
151
0
-159
434
22
23
24
All maturities
Gross purchases
Gross sales
Redemptions
12,232
7,331
3,389
16,690
6,769
1,816
19,870
8,369
3,000
1,719
0
0
1,721
0
87
1,642
0
0
1,768
289
0
3,184
214
500
309
0
0
2,909
0
700
25
26
Matched transactions
Gross sales
Gross purchases
674,000
675,496
589,312
589,647
543,804
543,173
43,404
45,001
50,086
47,783
40,934
43,037
45,989
44,480
48,193
47,667
53,751
53,367
56,858
57,991
27
28
Repurchase agreements
Gross purchases
Gross sales
113,902
113,040
79,920
78,733
130,774
130,286
0
3,687
7,891
6,730
7,816
8,978
2,263
0
37,211
30,223
19,247
28,499
3,257
3,257
3,869
9,626
8,358
-371
493
2,583
2,234
8,933
-9,326
3,342
668
0
145
494
0
108
0
0
189
0
0
*
0
0
17
0
0
10
0
0
138
0
0
5
0
0
6
0
0
84
28,895
28,863
13,320
13,576
18,957
18,638
0
248
678
463
558
773
189
0
2,871
2,510
1,960
2,510
497
497
555
130
130
-248
198
-225
51
356
-557
-84
73
-582
1,285
-704
203
-203
209
913
-1,122
0
4,497
9,175
9,773
-1,322
893
2,155
2,493
10,203
-11,005
3,258
29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
30
31
32
Outright transactions
Gross purchases
Gross sales
Redemptions
33
34
Repurchase agreements
Gross purchases
Gross sales
35 Net change in federal agency obligations
BANKERS ACCEPTANCES
36 Repurchase agreements, net
37 Total net change in System Open Market
Account
NOTE: Saks, 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.
A10
1.18
DomesticNonfinancialStatistics • January 1984
FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements
Millions of dollars
Account
Nov. 30
Wednesday
End of month
1983
1983
Dec. 14
Dec. 7
Dec. 21
Nov.
Oct.
Dec. 28
Dec.
Consolidated condition statement
ASSETS
11,123
4,618
428
11,123
4,618
433
11,123
4,618
439
11,123
4,618
416
11,123
4,618
409
11,126
4,618
468
11,123
4,618
428
11,121
4,618
415
1,059
0
491
0
2,431
0
1,132
0
1,311
0
387
0
1,059
0
918
0
1 Gold certificate account
2 Special drawing rights certificate account
3
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
11
Total bought outright1
12
13 Held under repurchase agreements
14 Total U.S. government securities
0
0
0
0
0
0
0
418
8,647
0
8,647
0
8,645
0
8,645
0
8,645
0
8,731
0
8,647
0
8,645
208
64,691
63,934
20,814
149,439
0
149,439
64,797
63,934
20,814
149,545
0
149,545
65,307
63,934
20,814
150,055
0
150,055
67,631
63,934
20,814
152,379
0
152,379
67,822
63,934
20,814
152,570
0
152,570
62,823
63,044
20,229
146,096
0
146,096
64,691
63,934
20,814
149,439
0
149,439
65,810
63,934
20,814
150,558
1,384
151,942
15 Total loans and securities
159,145
158,683
161,131
162,156
162,526
155,214
159,145
162,131
8,947
551
10,141
552
10,191
553
11,983
551
11,877
551
6,792
553
8,947
551
9,708
547
3,867
4,020
3,714
3,905
3,729
4,036
3,730
4,259
3,735
4,451
3,763
4,987
3,867
4,020
3,688
4,531
192,699
193,169
195,820
198,836
199,290
187,521
192,699
196,759
153,800
154,318
155,273
156,135
157,702
149,676
153,800
157,097
21,581
2,896
360
581
21,102
4,162
309
538
23,860
2,839
232
515
24,047
4,621
287
496
22,813
3,636
263
558
20,227
4,841
339
705
21,581
2,896
360
581
21,446
3,661
191
825
25,418
26,111
27,446
29,451
27,270
26,112
25,418
26,123
8,049
2,369
7,301
2,223
7,669
2,212
7,751
2,271
8,822
2,266
6,042
2,270
8,049
2,369
8,145
2,464
189,636
189,953
192,600
195,608
196,060
184,100
189,636
193,829
1,458
1,359
246
1,459
1,359
398
1,461
1,359
400
1,464
1,359
405
1,465
1,359
406
1,447
1,359
615
1,458
1,359
246
1,465
1,465
0
192,699
193,169
195,820
198,836
199,290
187,521
192,699
196,759
111,906
111,880
113,454
113,897
112,846
112,181
111,906
114,619
16 Cash items in process of collection
17 Bank premises
Other assets
18 Denominated
in foreign currencies2
19 All other3
20 Total assets
LIABILITIES
21 Federal Reserve notes
Deposits
??
To depository institutions
73 U.S. Treasury—General account
74 Foreign Official accounts
25 Other
26 Total deposits
77 Deferred availability cash items
28 Other liabilities and accrued dividends4
29 Total liabilities
CAPITAL ACCOUNTS
30
31 Surplus
32 Other capital accounts
33 Total liabilities and capital accounts
34 MEMO: Marketable U.S. government securities held in
custody for foreign and international account
Federal Reserve note statement
35 Federal Reserve notes outstanding
36
LESS: Held by bank5
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
178,700
24,900
153,800
179,371
25,053
154,318
179,869
24,596
155,273
179,612
23,477
156,135
179,111
21,497
157,614
175,946
26,270
149,676
178,700
24,900
153,800
178,875
21,778
157,097
11,123
4,618
0
138,059
11,123
4,618
0
138,577
11,123
4,618
0
139,532
11,123
4,618
0
140,394
11,123
4,618
0
141,873
11,126
4,618
0
133,932
11,123
4,618
0
138,059
11,121
4,618
0
141,358
42 Total collateral
153,800
154,318
155,273
156,135
157,614
149,676
153,800
157,097
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. Includes U.S. government securities held under repurchase agreement
against receipt of foreign currencies and foreign currencies warehoused for the
U.S. Treasury. 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.
5. Beginning September 1980, Federal Reserve notes held by the Reserve Bank
are exempt from the collateral requirement.
Reserve
1.19
FEDERAL RESERVE B A N K S
Banks;
Banking
Aggregates
All
Maturity Distribution of Loan and Security Holdings
Millions of dollars
Type and maturity groupings
Nov. 30
Dec. 7
Wednesday
End of month
1983
1983
Dec. 21
Dec. 14
Nov. 30
Oct. 31
Dec. 28
Dec. 30
1 Loans—Total
2 Within 15 days
3 16 days to 90 days
4 91 days to 1 year
1,059
1,018
41
0
491
380
100
11
2,431
2,283
137
11
1,132
984
147
1
1,131
1,196
114
1
387
317
34
36
1,059
1,018
41
0
918
881
37
0
5 Acceptances—Total
6 Within 15 days
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
418
418
0
0
9 U.S. government securities—Total
10 Within 15 days'
11 16 days to 90 days
12 91 days to 1 year
13 Over 1 year to 5 years
14 Over 5 years to 10 years
15 Over 10 years
149,439
7,873
32,493
43,553
34,021
13,485
18,014
149,545
6,175
33,337
44,513
34,021
13,485
18,014
150,055
6,826
33,223
44,486
34,021
13,485
18,014
152,379
7,390
33,703
45,766
34,021
13,485
18,014
152,570
7,216
35,659
44,175
34,021
13,485
18,014
146,0%
5,528
30,%5
45,505
33,093
13,416
17,589
149,439
7,873
32,493
43,553
34,021
13,485
18,014
151,942
2,700
38,247
45,475
34,021
13,485
18,014
16 Federal agency obligations—Total
17 Within 15 days1
18 16 days to 90 days
19 91 days to 1 year
20 Over 1 year to 5 years
21 Over 5 years to 10 years
22 Over 10 years
8,647
120
671
1,799
4,331
1,323
403
8,647
52
773
1,770
4,327
1,323
402
8,645
61
771
1,868
4,219
1,323
403
8,645
189
643
1,868
4,219
1,323
403
8,645
178
598
1,937
4,196
1,333
403
8,731
133
638
1,859
4,353
1,230
518
8,647
120
671
1,799
4,331
1,323
403
8,853
386
598
1,937
4,1%
1,333
403
1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements.
A12
1.20
DomesticNonfinancialStatistics • January 1984
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS A N D MONETARY BASE
Billions of dollars, averages of daily figures
Item
1979
Dec.
1980
Dec.
1981
Dec.
1983
1982
Dec.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS'
1 Total reserves2
2 Nonborrowed reserves
3 Required reserves
4 Monetary base3
30.71
32.46
33.75
36.23
37.15
37.13
37.61
37.80
37.69
29.24
30.38
139.3
30.77
31.94
151.1
33.11
33.43
158.8
35.60
35.73
171.1
36.14
36.68
177.3
36.18
36.68
178.8
35.98
37.13
180.3
36.35
37.29
181.1
36.15
37.25
182.1
37.72
37.62
37.41
36.28 36.78
37.22 37.12
183.4 184.fr-
36.50
36.88
185.5
Not seasonally adjusted
5 Total reserves2
6 Nonborrowed reserves
7 Required reserves
8 Monetary base3
31.26
33.4
34.61
36.96
36.91
36.64
36.79
37.34
37.06
29.79
30.93
141.5
31.72
32.89
154.4
33.98
34.29
161.9
36.33
36.46
174.4
35.90
36.44
176.3
35.69
36.19
177.8
35.15
36.31
179.6
35.89
36.83
181.7
35.52
36.62
181.8
43.91
40.66
41.92
41.85
38.65
38.28
38.42
38.95
38.66
42.43
43.58
156.1
38.97
40.15
162.5
41.29
41.60
169.7
41.22
41.35
179.3
37.64
38.17
178.4
37.33
37.83
179.8
36.78
37.93
181.6
37.50
38.44
183.7
37.12
38.21
183.8
37.39
37.68
37.65
35.95 37.84
36.89 37.18
182.9 184.4''
36.79
37.17
186.7
NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS4
9 Total reserves2
10 Nonborrowed reserves
11 Required reserves
12 Monetary base3
1. Reserve aggregates include required reserves of member banks and Edge
Act corporations and other depository institutions. Discontinuities associated
with the implementation of the Monetary Control Act, the inclusion of Edge Act
corporation reserves, and other changes in Regulation D have been removed.
2. Reserve balances with Federal Reserve Banks plus vault cash at institutions
with required reserve balances plus vault cash equal to required reserves at other
institutions.
3. Consists of reserve balances and service-related balances and adjustments at
Federal Reserve Banks in the current week plus vault cash held two weeks earlier
used to satisfy reserve requirements at all depository institutions plus currency
outside the U.S. Treasury, Federal Reserve Banks, the vaults of depository
institutions, and surplus vault cash at depository institutions.
4. Reserves of depository institutions series reflect actual reserve requirement
percentages with no adjustments to eliminate the effect of changes in Regulation D
including changes associated with the implementation of the Monetary Control
Act. Includes required reserves of member banks and Edge Act corporations and
beginning Nov. 13, 1980, other depository institutions. Under the transitional
phase-in program of the Monetary Control Act of 1980, the net changes in
required reserves of depository institutions have been as follows: Effective
Nov. 13, 1980, a reduction of $2.9 billion; Feb. 12, 1981, an increase of $245
million; Mar. 12, 1981, an increase of $75 million; May 14, 1981, an increase of
$245 million; Sept. 3, 1981, a reduction of $1.1 billion; Nov. 12, 1981, an increase
37.92
38.14
38.14
36.48 37.29
37.42 37.63
183.5 184.9'"
37.24
37.62
187.6
of$210 million; Jan. 14, 1982, a reduction of $60 million; Feb. 11,1982 an increase
of $170 million; Mar. 4, 1982, an estimated reduction of $2.0 billion; May 13, 1982,
an estimated increase of $150 million; Aug. 12, 1982 an estimated increase of $140
million; and Sept. 2, 1982, an estimated reduction of $1.2 billion; Oct. 28, 1982 an
estimated reduction of $100 million; Dec. 23, 1982 an estimated reduction of $800
million; Mar. 3, 1983 an estimated reduction of $1.9 billion; and Sept. 1, 1983, an
estimated reduction of $1.2 billion beginning with the week ended Dec. 23, 1981,
reserve aggregates have been reduced by shifts of reservable liabilities to IBFs.
On the basis of reports of liabilities transferred to IBFs by U.S. commercial banks
and U.S. agencies and branches of foreign banks, it is estimated that required
reserves were lowered on average by $60 million to $90 million in December 1981
and $180 million to $230 million in January 1982, mostly reflecting a reduction in
reservable Eurocurrency transactions. Also, beginning with the week ending
Apr. 20, 1983, required reserves were reduced an estimated $80 million as a result
of the elimination of reserve requirements on nonpersonal time deposits with
maturities of 2Vi years or more to less than 3 Vi years.
NOTE. Latest monthly and weekly figures are available from the Board's
H.3(502) statistical release. Back data and estimates of the impact on required
reserves and 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 Aggregates
1.21
A13
MONEY STOCK MEASURES A N D COMPONENTS
Billions of dollars, averages of daily figures
1983
1979
Dec.
Item
1980
Dec.
1981
Dec.
1982
Dec.
Aug.
Sept.
Oct.
Nov.
Seasonally adjusted
MEASURES
1
2
3
4
1
Ml
M2
M3
L2
389.0
1,497.5
1,758.4
2,131.8
414.1
1,630.3
1,936.7
2,343.6
440.6
1,794.9
2,167.9
2,622.0
478.2
1,959.5
2,377.6
2,896.8
516.7
2,136.9
2,528.3
3,115.6'
517.1
2,145.4
2,543.8'
n.a.
517.9
2,161.7'
2,561.4'
n.a.
518.2
2,175.7
2,587.1
n.a.
106.5
3.7
262.0
17.0
423.1
635.9
222.2
116.2
4.1
266.8
26.9
400.7
731.7
258.9
123.2
4.5
236.4
76.6
344.4
828.6
302.6
132.8
4.2
239.8
101.3
359.3
859.1
333.8
141.8
4.7
244.5
125.8
322.1
748.0
311.6
143.0
4.7
243.4
126.0
320.6
757.7
317.7'
144.2
4.8
242.9
126.0
318.8
771.0
319.9'
241.6
126.5
316.4
785.6
324.9
SELECTED COMPONENTS
5
6
7
8
9
10
11
Currency
Travelers checks3
Demand deposits
Other checkable deposits4
Savings deposits5
Small-denomination time deposits6
Large-denomination time deposits7
145.3
4.8
Not seasonally adjusted
MEASURES'
12 Ml
N M2
14 M3
15 L 2
398.8
1,502.1
1,766.1
2,138.9
424.7
1,635.0
1,944.9
2,350.8
452.1
1,799.6
2,175.9
2,629.7
491.0
1,964.5
2,385.3
2,904.7
511.6
2,129.2
2,519.3
3,102.3'
514.1
2,137.2'
2,534.6'
n.a.
519.5
2,160.7'
2,560.0
n.a.
523.8
2,175.5
2,586.7
n.a.
108.2
3.5
270.1
17.0
21.2
420.7
n.a.
633.1
118.3
3.9
275.2
27.2
28.4
398.3
n.a.
728.3
125.4
4.3
244.0
78.4
36.1
342.1
n.a.
824.1
135.2
4.0
247.7
104.0
44.3
356.7
43.2
853.9
142.1
5.1
241.3
123.0
52.1'
321.5
366.3
746.0
142.6
5.0
242.1
124.5
53.0
318.2
366.9
754.8
143.9
4.8
244.4
126.4
56.5'
318.0
367.4
769.3
146.1
4.6
244.7
128.4
55.2
313.8
369.1
782.5
33.4
9.5
226.0
61.4
14.9
262.4
150.9
36.0
305.9
182.2'
336.5
139.1
38.4
310.3
137.6
39.1
316.7'
137.8
39.9
319.5
138.7
40.6
324.8
SELECTED COMPONENTS
16
17
18
19
20
21
22
23
Currency
Travelers checks3
Demand deposits
Other checkable deposits4
Overnight RPs and
Eurodollars8
Savings deposits5
Money market deposit accounts 6
Small-denomination time deposits
Money market mutual funds
24 General purpose and broker/dealer
25 Institution only
26 Large-denomination time deposits7
1. Composition of the money stock measures is as follows:
Ml: Averages of daily figures for (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) negotiable order of withdrawal (NOW) and automatic transfer service
(ATS) accounts at banks and thrift institutions, credit union share draft (CUSD)
accounts, and demand deposits at mutual savings banks.
M2: Ml plus money market deposit accounts, savings and small-denomination
time deposits at all depository institutions, overnight repurchase agreements at
commercial banks, overnight Eurodollars held by U.S. residents other than banks
at Caribbean branches of member banks and balances of money market mutual
funds (general purpose and broker/dealer).
M3: M2 plus large-denomination time deposits at all depository institutions,
term RPs at commercial banks and savings and loan associations, and balances of
institution-only money market mutual funds.
2. L: M3 plus other liquid assets such as term Eurodollars held by U.S.
residents other than banks, bankers acceptances, commercial paper, Treasury
bills and other liquid Treasury securities, and U.S. savings bonds.
47.(f
3. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers.
4. Includes ATS and NOW balances at all institutions, credit union share draft
balances, and demand deposits at mutual savings banks.
5. Excludes NOW and ATS accounts at commercial banks and thrift institutions and CUSDs at credit unions and all money market deposit accounts
(MMDAs).
6. Issued in amounts of less than $100,000 and includes retail RPs.
7. Issued in amounts of $100,000 or more and are net of the holdings of
domestic banks, thrift institutions, the U.S. government, money market mutual
funds, and foreign banks and official institutions.
8. Overnight (and continuing contract) RPs are those issued by commercial
banks to other than depository institutions and money market mutual funds
(general purpose and broker/dealer), and overnight Eurodollars are those issued
by Caribbean branches of member banks to U.S. residents other than depository
institutions and money market mutual funds (general purpose and broker/dealer).
NOTE: Latest monthly and weekly figures are available from the Board's H.6
(508) release. Back data are available from the Banking Section, Division of
Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
A14
1.22
DomesticNonfinancialStatistics • January 1984
BANK DEBITS A N D DEPOSIT TURNOVER
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
1983
Bank group, or type of customer
1980'
1981'
1982'
June
July
Aug.
Sept.
Oct.
Nov.
Seasonally adjusted
DEBITS TO
1
2
3
4
5
Demand deposits2
All insured banks
Major New York City banks
Other banks
3
ATS-NOW accounts
Savings deposits4
6
7
8
9
10
Demand deposits2
All insured banks
Major New York City banks
Other banks
3
ATS-NOW accounts
Savings deposits4
62,757.8
25,156.1
37,601.7
159.3
670.0
80,858.7
33,891.9
46,966.9
743.4
672.7
90,914.4
37,932.9
52,981.6
1,036.2
721.4
106,799.4
46,445.4
60,354.1
1,342.1
776.2
107,884.4
46,978.0
60,906.4
1,390.1
659.4
111,538.1
48,373.3
63,164.9
1,679.5
706.3
110,700.7
46,903.7
63,796.9
1,495.9
712.7
118,407.2
52,639.9
65,767.3
1,392.8
643.7
114,466.6
49,715.8
64,750.8
1,447.4
674.9
198.7
803.7
132.2
9.7
3.6
285.8
1,105.1
186.2
14.0
4.1
324.2
1,287.6
211.1
14.5
4.5
367.5
1,449.1
233.4
14.7
5.6
371.5
1,432.2
236.5
15.0
4.8
385.7
1,526.7
245.3
17.9
5.2
384.7
1,508.8
248.6
15.9
5.3
409.6
1,703.8
254.7
14.9
4.9
398.3
1,645.6
251.8
15.5
5.1
DEPOSIT TURNOVER
Not seasonally adjusted
DEBITS TO
11
12
13
14
15
16
Demand deposits2
All insured banks
Major New York City banks
Other banks
ATS-NOW
accounts3
MMDA5
Savings deposits4
17
18
19
20
21
22
Demand deposits2
All insured banks
Major New York City banks
Other banks
ATS-NOW
accounts3
MMDA5
Savings deposits4
63,124.4
25,243.1
37,881.3
158.0
0
669.8
81,197.9
34,032.0
47,165.9
737.6
0
672.9
91,031.9
38,001.0
53,030.9
1,027.1
0
720.0
113,773.4
50,643.1
63,130.4
1,420.7
714.3
779.3
105,057.8
45,601.0
59,456.8
1,325.3
603.3
661.6
115,776.6
49,788.2
65,988.3
1,468.9
655.5
694.3
111,741.3
48,276.1
63,465.2
1,388.3
641.4
688.9
114,191.9
49,910.9
64,280.9
1,373.2
700.3
672.9
110,963.9
47.508.1
63,455.8
1,327.2
639.1
635.3
202.3
814.8
134.8
9.7
0
3.6
286.1
1,114.2
186.2
14.0
0
4.1
325.0
1,295.7
211.5
14.3
0
4.5
393.1
1,563.6
245.6
15.7
3.3
5.6
357.6
1,383.5
227.9
14.5
2.8
4.8
406.7
1,621.6
259.8
16.0
3.0
5.1
387.2
1,574.5
246.1
15.0
2.9
5.2
391.1
1,595.5
246.6
14.6
3.2
5.1
381.7
1,553.4
244.0
14.0
2.8
4.8
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 ATS-NOW 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.
Commercial Banks
1.23
LOANS A N D SECURITIES
A15
All Commercial Banks 1
Billions of dollars; averages of Wednesday figures
1981
1983
1982
1981
1982
2
Dec.
1983
Category
Dec.
2
Dec.
Aug.
Sept.
Oct.
Nov.
Dec.
2 U.S. Treasury securities
3 Other securities
4 Total loans and leases3
5 Commercial and industrial
loans
6 Real estate loans
7 Loans to individuals
8 Security loans
9 Loans to nonbank financial
institutions
10 Agricultural loans
11 Lease financing receivables
12 All other loans
Sept.
Oct.
Nov.
Not seasonally adjusted
Seasonally adjusted
1 Total loans and securities3
Aug.
1,316.3
1,412.1
1,513.2
1,520.3
1,533.1
1,548.6
1,326.1
1,422.5
1,507.0
1,521.6
1,538.2
1,555.8
111.0
231.4
973.9
130.9
239.1
1,042.0
174.4
247.8
1,091.0
176.9
247.1
1,096.3
182.3
246.6
1,104.2
186.2
246.8
1,115.6
111.4
232.8
981.8
131.5
240.6
1,050.4
172.4
247.0
1,087.5
176.3
247.1
1,098.2
180.8
246.9
1,110.4
185.0
247.4
1,123.4
358.0
285.7
185.1
21.9
392.4
303.2
191.8
24.7
402.7
322.5
205.5
22.9
402.6
326.2
207.7
23.7
404.7
329.2
211.9
25.2
407.8
332.1
215.4
26.2
360.1
286.8
186.4
22.7
394.7
304.1
193.1
25.5
400.2
322.2
205.7
23.6
402.2
326.9
209.1
23.4
405.4
330.5
213.6
25.0
409.6
333.4
216.7
26.7
30.2
33.0
12.7
47.2
31.1
36.1
13.1
49.7
30.9
37.2
12.9
56.5
30.8
37.6
12.9
54.8
30.4
37.8
13.0
52.0
29.8
39.3
13.0
52.1
31.2
33.0
12.7
49.2
32.1
36.1
13.1
51.7
30.7
37.6
12.9
54.6
30.9
38.2
12.9
54.6
30.6
38.3
13.0
54.1
30.2
39.6
13.0
54.1
1,319.1
1,415.0
1,515.7
1,522.8
1,535.6
1,551.1
1,328.9
1,425.4
1,509.6
1,524.2
1,540.7
1,558.3
976.7
2.8
1,045.0
2.9
1,093.5
2.6
1,098.9
2.6
1,106.7
2.6
1,118.1
2.5
984.7
2.8
1,053.3
2.9
1,090.1
2.6
1,100.8
2.6
1,113.0
2.6
1,125.9
2.5
360.2
394.6
404.5
404.6
406.7
409.7
362.3
396.9
402.2
404.2
407.4
411.6
2.2
8.9
2.3
8.5
2.0
8.5
2.0
8.3
2.0
8.9
1.9
8.6
2.2
9.8
2.3
9.5
2.0
8.2
2.0
8.3
2.0
8.8
1.9
8.9
349.1
334.9
14.2
19.0
383.8
373.5
10.3
13.5
394.1
381.5
12.5
14.5
394.3
381.8
12.5
14.3
395.8
383.1
12.7
14.7
399.2
386.9
12.3
14.5
350.3
334.3
16.1
20.0
385.2
372.7
12.4
14.5
392.0
379.8
12.2
14.0
393.9
381.6
12.3
14.7
396.6
383.9
12.8
15.0
400.7
388.0
12.7
14.8
MEMO:
13 Total loans and3,4securities plus
loans sold
14 Total loans plus loans sold3-4 . . . .
15 Total loans sold to affiliates 3 - 4 ....
16 Commercial and industrial
loans
plus loans sold4
17 Commercial and
industrial
loans sold4
18 Acceptances held
19 Other commercial and industrial loans
20
To U.S. addressees5
21
To non-U.S. addressees
22 Loans to foreign banks
1. Includes domestically chartered banks; U.S. branches and agencies of
foreign banks, New York investment companies majority owned by foreign
banks, and Edge Act corporations owned by domestically chartered and foreign
banks.
2. Beginning December 1981, shifts of foreign loans and securities from U.S.
banking offices to international banking facilities (IBFs) reduced the levels of
several items. Seasonally adjusted data that include adjustments for the amounts
shifted from domestic offices to IBFs are available in the Board's G.7 (407)
statistical release (available from Publications Services, Board of Governors of
the Federal Reserve System, Washington, D.C. 20551).
3. Excludes loans to commercial banks in the United States.
4. 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.
5. United States includes the 50 states and the District of Columbia.
NOTE. Data are prorated averages of Wednesday estimates for domestically
chartered banks, based on weekly reports of a sample of domestically chartered
banks and quarterly reports of all domestically chartered banks. For foreignrelated institutions, data are averages of month-end estimates based on weekly
reports from large agencies and branches and quarterly reports from all agencies,
branches, investment companies, and Edge Act corporations engaged in banking.
A16
1.24
DomesticNonfinancialStatistics • January 1984
MAJOR NONDEPOSIT F U N D S OF COMMERCIAL BANKS'
Monthly averages, billions of dollars
1981
1982
Dec.
Dec.
1983
source
1
2
3
4
5
6
Total nondeposit funds2
Seasonally adjusted
Not seasonally adjusted
Federal funds, RPs, and other 3
borrowings from nonbanks
Seasonally adjusted
Not seasonally adjusted
Net balances due to foreign-related
institutions, not seasonally
adjusted
Loans sold to affiliates, 4not
seasonally adjusted
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct/
Nov.
96.3
98.1
83.0
84.6
73.7
75.2
76.7
77.7
76.0
76.8
80.3
79.0
90.9
90.5
88.3
90.0
76.3
78.5
81.6
85.9
83.2
86.0
80.2
82.7
97.2
99.5
111.8
113.5
128.0
129.6
132.4
133.9
135.3
136.3
135.4
136.2
139.9
138.5
145.9
145.5
140.7
142.4
132.7
134.8
130.9
135.2
132.2
135.0
133.5
136.0
141.6
143.9
-18.1
-47.9
-61.6
-61.5
-62.3
-62.4
-57.7
-55.1
-58.9
-51.8
-51.4
-55.8
-46.9
2.8
2.9
3.0
3.0
3.0
3.0
2.8
2.7
2.7
2.6
2.6
2.6
2.5
-22.4
54.9
32.4
-39.5
72.2
32.6
-49.9
79.2
29.2
-50.4
78.9
28.4
-52.7
79.7
26.8
-52.6
80.3
27.6
-48.6
76.3
27.6
-49.1
75.8
26.6
-50.8
77.4
26.5
-45.2
73.6
28.3
-46.2
74.7
28.3
-48.5
76.6
28.1
-42.9
76.4
33.5
4.3
48.1
52.4
-8.2
54.9
46.6
-11.6
57.0
45.3
-11.0
55.5
44.4
-9.4
56.1
46.6
-9.7
55.9
46.1
-9.0
55.8
46.7
-5.9
53.9
47.9
-7.9
55.2
47.2
-6.5
53.5
47.0
-5.1
53.5
48.3
-7.3
55.2
47.8
-4.0
53.1
49.1
59.0
59.2
71.0
71.1
72.2
72.2
74.3
73.7
74.7
73.9
79.3
76.3
84.6
82.6
81.4
81.5
75.6
76.1
74.2
76.9
76.0
77.2
78.1
79.0
83.9
84.6
12.2
11.1
11.9
10.8
15.7
16.3
8.8
10.2
12.5
13.2
13.5
14.2
11.3
12.5
13.0
13.2
24.0
21.8
20.6
16.4
16.5
18.0
21.7
24.7
11.3
8.5
325.4
330.4
349.6
353.9
321.4
325.4
307.2
310.5
300.0
300.7
296.6
293.0
287.2
285.0
287.0
283.5
284.9
281.3
284.2
283.9
283.2
283.9
278.2
279.5
280.8
282.0
MEMO
7 Domestically chartered banks' net
positions with own foreign
branches,5 not seasonally
adjusted
8 Gross due from balances
9 Gross due to balances
10 Foreign-related institutions' net
positions with directly related
institutions, not seasonally
adjusted6
11 Gross due from balances
12 Gross due to balances
Security RP borrowings
13 Seasonally adjusted'
14 Not seasonally adjusted
U.S. Treasury demand balances8
15 Seasonally adjusted
16 Not seasonally adjusted
Time deposits, $100,000 or more9
17 Seasonally adjusted
18 Not seasonally adjusted
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, New
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 and loans to affiliates.
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. Includes averages of daily figures for member
banks and averages of current and previous month-end data for foreign-related
institutions.
4. Loans initially booked by the bank and later sold to affiliates that are still
held by affiliates. Averages of Wednesday data.
5. Averages of daily figures for member and nonmember banks.
6. Averages of daily data.
7. Based on daily average data reported by 122 large banks.
8. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
9. Averages of Wednesday figures.
Banking Institutions
1.25
ASSETS A N D LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
A17
Last-Wednesday-of-Month Series
Billions of dollars except for number of banks
1983
1982
Dec.
Mar.
Apr.
May
June
July
1,370.3
1,000.7
356.7
644.0
129.0
240.5
1,392.2
1,001.7
358.0
643.7
150.6
239.9
1,403.8
1,005.1
357.9
647.2
155.5
243.3
1,411.9
1,007.5
356.7
650.8
160.9
243.5
1,435.1
1,025.6
360.1
665.6
166.0
243.5
1,437.4
1,029.1
361.1
668.0
165.1
243.3
184.4
23.0
25.4
67.6
68.4
168.9
19.9
20.5
67.1
61.5
170.1
20.4
23.9
66.1
59.6
164.5
20.3
22.4
65.6
56.3
176.9
21.3
18.8
69.7
67.1
168.7
20.7
20.6
67.1
60.3
Nov.
Sept
Oct.
1,457.0
1,043.4
363.0
680.4
167.5
246.1
1,466.1
1,049.7
364.0
685.7
171.2
245.2
1,483.0
1,060.3
367.0
693.3
176.8
245.9
1,502.3
1,075.5
372.8
702.7
180.4
246.4
1,525.5
1,095.5
380.8
714.7
181.4
248.7
176.9
21.0
22.5
69.0
64.4
160.0
20.8
15.4
66.7
56.9
164.0
20.5
19.7
67.1
56.6
179.0
22.3
17.6
70.9
69.0
190.5
23.4
18.6
75.6
73.0
Aug.
Dec.
DOMESTICALLY CHARTERED
COMMERCIAL BANKS1
1
2
3
4
5
6
Loans and securities, excluding
interbank
Loans, excluding interbank
Commercial and industrial
Other
U.S. Treasury securities
Other securities
7
8
9
10
11
Cash assets, total
Currency and coin
Reserves with Federal Reserve Banks
Balances with depository institutions .
Cash items in process of collection . . .
12
Other assets2
265.3
257.9
252.4
248.3
253.2
254.5
257.2
252.3
253.0
261.9
253.4
13
Total assets/total liabilities and capital . . .
1,820.0
1,818.9
1,826.3
1,824.8
1,865.2
1,860.6
1,891.0
1,878.4
1,900.0
1,943.9
1,969.4
14
IS
16
17
Deposits
Demand
Savings
Time
1,361.8
363.9
296.4
701.5
1,374.2
333.4
419.2
621.6
1,368.0
329.2
426.9
611.9
1,370.8
324.5
440.2
606.1
1,402.7
344.4
445.3
613.1
1,396.5
334.2
447.5
614.8
1,420.1
344.7
449.0
626.4
1,408.1
328.1
448.8
631.2
1,419.5
331.3
451.5
636.8
1,459.2
358.1
458.3
642.8
1,482.5
371.0
460.7
650.8
18
19
20
Borrowings
Other liabilities
Residual (assets less liabilities)
215.1
109.2
133.8
211.3
103.5
130.0
224.0
102.3
132.0
214.1
104.7
135.1
221.2
104.3
137.0
217.5
105.5
141.0
217.2
107.6
146.1
217.8
107.1
145.4
226.8
106.5
147.2
219.7
112.6
152.4
216.3
117.9
152.8
10.7
14,787
9.6
14,819
17.8
14,823
2.7
14,817
19.3
14,826
19.3
14,785
14.8
14,795
20.8
14,804
22.5
14,800
2.8
14,799
8.8
14,796
1,429.7
1,054.8
395.3
659.5
132.8
242.1
1,451.3
1,054.5
395.9
658.6
155.3
241.5
1,460.8
1,055.7
393.5
662.2
160.2
244.9
1,467.6
1,056.4
391.7
664.7
166.1
245.2
1,491.5
1,075.2
395.3
679.9
171.3
245.1
1,494.1
1,078.8
397.7
681.2
170.3
245.0
1,515.4
1,094.9
400.6
694.3
172.7
247.8
1,525.4
1,102.5
402.7
699.8
176.1
246.9
1,541.8
1,112.2
405.3
706.8
182.0
247.7
1,563.2
1,129.2
412.0
717.2
185.9
248.1
1,587.1
1,149.7
420.1
729.5
186.9
250.5
200.7
23.0
26.8
81.4
69.4
185.5
19.9
22.0
81.0
62.6
186.3
20.4
25.4
79.8
60.7
180.3
20.3
23.8
78.9
57.3
193.5
21.3
20.0
84.0
68.2
185.2
20.7
21.9
81.2
61.4
193.3
21.1
24.0
82.8
65.4
174.7
20.9
16.6
79.3
58.0
178.4
20.5
20.8
79.5
57.6
195.0
22.3
19.1
83.6
70.0
205.0
23.4
19.7
87.9
73.0
MEMO:
21
22
U.S. Treasury note balances included in
borrowing
Number of banks
ALL COMMERCIAL BANKING
INSTITUTIONS3
24
75
76
77
28
Loans and securities, excluding
interbank
Loans, excluding interbank
Commercial and industrial
Other
U.S. Treasury securities
Other securities
79
30
31
32
33
Cash assets, total
Currency and coin
Reserves with Federal Reserve Banks
Balances with depository institutions .
Cash items in process of collection . . .
34
Other assets2
23
341.7
325.4
317.8
309.5
318.1
318.7
324.6
320.9
318.8
329.7
320.9
1,962.2
1,964.9
1,957.4
2,003.2
1,998.0
2,033.3
2,021.0
2,039.1
2,088.0
2,113.0
35
Total assets/total liabilities and capital . . .
1,972.1
36
37
38
39
Deposits
Demand
Savings
Time
1,409.7
376.2
296.7
736.7
1,419.5
345.7
419.7
654.1
1,411.0
341.1
427.3
642.6
1,413.1
336.4
440.7
636.0
1,443.8
356.4
445.7
641.6
1,438.1
346.4
448.0
643.8
1,461.4
356.6
449.5
655.3
1,448.9
340.0
449.3
659.5
1,459.0
343.2
452.0
663.8
1,499.4
369.9
458.8
670.6
1,524.7
383.2
461.2
680.3
40
41
42
Borrowings
Other liabilities
Residual (assets less liabilities)
278.3
148.4
135.7
269.9
141.1
131.9
281.3
138.6
133.9
269.5
137.9
137.0
278.2
142.3
138.9
277.9
139.1
142.9
280.5
143.4
148.0
282.6
142.3
147.3
289.6
141.5
149.1
282.5
151.9
154.2
275.1
158.5
154.7
10.7
15,329
9.6
15,376
17.8
15,390
2.7
15,385
19.3
15,396
19.3
15,359
14.8
15,370
20.8
15,382
22.5
15,383
2.8
15,382
8.8
15,380
MEMO:
43
44
U.S. Treasury note balances included in
borrowing
Number of banks
1. Domestically chartered commercial banks include all commercial banks in
the United States except branches of foreign banks; included are member and
nonmember banks, stock savings banks, and nondeposit trust companies.
2. Other assets include loans to U.S. commercial banks.
3. Commercial banking institutions include domestically chartered commercial
banks, branches and agencies of foreign banks, Edge Act and Agreement
corporations, and New York State foreign investment corporations.
NOTE. Figures are partly estimated. They include all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries. Data for domestically chartered commercial banks are for the last Wednesday of the month. Data
for other banking institutions are estimates made on the last Wednesday of the
month based on a weekly reporting sample of foreign-related institutions and
quarter-end condition report data.
A18
1.26
DomesticNonfinancialStatistics • January 1984
ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $750 Million or More on
December 31, 1977, Assets and Liabilities
Millions of dollars, Wednesday figures
1983
Account
Nov. 2
1
2
3
4
Cash items in process of collection
Demand deposits due from banks in the United States..
All other cash and due from depository institutions . . . .
Total loans and securities
Securities
5 U.S. Treasury securities
6 Trading account
7 Investment account, by maturity
8
One year or less
9
Over one through five years
Over five years
10
11 Other securities
12 Trading account
13 Investment account
14
U.S. government agencies
15
States and political subdivisions, by maturity
16
One year or less
17
Over one year
18
Other bonds, corporate stocks and securities
Loans
19 Federal funds sold1
20 To commercial banks
21 To nonbank brokers and dealers in securities
22 To others
23 Other loans, gross
24 Commercial and industrial
25
Bankers acceptances and commercial paper
26
All other
27
U.S. addressees
28
Non-U.S. addressees
29 Real estate
30 To individuals for personal expenditures
To financial institutions
31
Commercial banks in the United States
32
Banks in foreign countries
33
Sales finance, personal finance companies, etc
34
Other financial institutions
35 To nonbank brokers and dealers in securities 2
36 To others for purchasing and carrying securities . . . .
37 To finance agricultural production
38 All other
39 LESS: Unearned income
40
Loan loss reserve
41 Other loans, net
42 Lease financing receivables
43 All other assets
44 Total assets
Deposits
45 Demand deposits
46 Mutual savings banks
47 Individuals, partnerships, and corporations
48 States and political subdivisions
49 U.S. government
50 Commercial banks in the United States
51 Banks in foreign countries
52 Foreign governments and official institutions
53 Certified and officers' checks
54 Time and savings deposits
55 Savings
56
Individuals and nonprofit organizations
57
Partnerships and corporations operated for profit ..
58
Domestic governmental units
59
All other
60 Time
Individuals, partnerships, and corporations
61
62
States and political subdivisions
63
U.S. government
64
Commercial banks in the United States
65
Foreign governments, official institutions, and
banks
Liabilities for borrowed money
66 Borrowings from Federal Reserve Banks
67 Treasury tax-and-loan notes
68 All other liabilities for borrowed money3
69 Other liabilities and subordinated notes and debentures .
70 Total liabilities
71 Residual (total assets minus total liabilities)4
Nov. 9
Nov. 23
Nov. 30
Dec. 7p
Dec. 14 P Dec. 21P
Dec. 28^
49,878
7,144
33,431
689,481
49,636
7,372
29,220
689,528
53,639
8,013
31,786
688,889
49,222
6,403
34,728
685,677
53,442
8,071
32,089
693,667
47,811
7,914
32,122
695,256
52,076
7,626
35,366
695,197
53,443
8,270
34,678
695,450
57,480
9,448
35,769
700,602
56,304
9,114
47,190
14,730
29,246
3,213
84,140
6,346
77,794
15,982
58,146
7,833
50,312
3,667
57,065
9,383
47,682
15,139
29,318
3,225
83,673
5,799
77,874
15,885
58,356
7,942
50,415
3,633
58,501
9,701
48,800
15,274
30,734
2,792
83,614
5,719
77,894
15,881
58,348
7,863
50,485
3,665
57,373
8,178
49,194
15,442
30,932
2,820
84,536
6,227
78,309
16,021
58,618
7,992
50,626
3,670
58,500
9,045
49,455
15,469
31,244
2,743
83,946
5,675
78,271
15,905
58,676
7,984
50,692
3,690
60,023
9,855
50,168
15,952
31,353
2,862
84,723
6,491
78,231
15,893
58,641
8,133
50,507
3,697
59,209
8,603
50,606
15,677
31,824
3,105
84,333
5,782
78,551
16,150
58,702
7,996
50,706
3,699
58,181
8,342
49,839
15,398
31,248
3,192
85,150
6,164
78,986
16,205
59,105
7,964
51,140
3,676
57,130
7,686
49,443
15,177
31,061
3,206
86,224
5,913
80,311
16,340
60,307
8,140
52,168
3,664
45,751
33,202
9,394
3,156
516,944
216,763
4,854
211,909
204,653
7,256
139,441
81,642
44,083
32,288
8,391
3,404
518,428
218,597
5,323
213,274
205,928
7,346
139,261
81,756
42,523
30,276
9,181
3,067
517,984
216,678
4,352
212,326
205,055
7,271
139,634
81,980
40,574
27,998
9,406
3,170
516,935
216,280
3,893
212,387
205,124
7,263
139,686
82,425
44,815
33,587
8,369
2,860
520,150
217,399
4,851
212,548
205,251
7,298
139,903
82,898
43,761
30,628
9,612
3,522
520,549
218,256
4,792
213,465
206,194
7,270
139,911
83,448
44,777
31,122
10,065
3,590
520,670
218,142
4,642
213,518
206,447
7,070
140,288
84,171
39,568
26,686
9,202
3,680
526,330
219,658
4,254
215,404
208,201
7,203
140,303
85,083
40,664
27,992
9,226
3,446
530,468
222,209
4,518
217,690
210,185
7,505
140,579
86,358
7,895
8,890
9,655
15,581
9,840
3,332
7,284
16,620
4,979
8,680
503,285
10,987
143,452
934,374
8,208
8,888
9,322
15,888
9,213
3,378
7,221
16,696
5,018
8,703
504,707
10,992
146,633
933,382
8,003
8,871
9,297
15,438
10,387
3,186
7,208
17,300
4,997
8,737
504,251
10,989
142,085
935,401
8,143
8,371
9,178
15,023
10,590
3,195
7,161
16,883
4,979
8,763
503,193
11,015
140,556
927,601
7,890
8,695
9,224
15,246
11,232
3,180
7,153
17,329
4,973
8,771
506,406
11,044
141,806
940,119
7,864
8,492
9,299
15,505
10,685
3,200
7,068
16,817
4,973
8,827
506,749
11,063
144,216
938,383
7,707
7,619
9,322
15,653
10,544
3,204
7,157
16,862
4,976
8,816
506,878
11,058
142,645
943,969
9,199
7,984
9,139
15,365
11,550
3,229
7,207
17,613
4,965
8,813
512,552
11,104
143,872
946,818
8,913
8,186
9,359
16,125
10,494
3,291
7,175
17,778
5,038
8,846
516,584
11,137
140,698
955,135
178,266
707
136,457
5,522
1,154
19,740
6,316
711
7,659
422,723
173,299
152,771
19,283
1,200
45
249,423
222,941
16,572
224
6,558
178,264
713
136,286
4,340
1,4%
18,601
5,978
751
10,100
424,026
173,774
152,961
19,609
1,164
40
250,252
223,842
16,609
211
6,460
182,702
734
138,397
4,844
2,314
20,147
6,921
899
8,448
423,360
173,776
152,702
19,792
1,232
49
249,585
222,940
16,648
218
6,598
172,774
563
133,493
4,699
2,026
18,289
6,000
936
6,768
425,988
173,506
152,344
19,938
1,171
53
252,482
225,435
16,955
214
6,728
185,419
677
141,338
5,120
1,938
20,124
6,498
1,276
8,448
426,856
174,206
152,904
20,046
1,216
40
252,650
225,671
16,617
214
7,059
177,669
623
136,614
4,796
1,820
19,234
6,058
821
7,702
427,672
176,017
154,440
20,265
1,255
57
251,655
224,902
16,368
232
7,119
182,850
764
141,563
4,863
2,237
18,785
5,995
760
7,973
427,187
175,169
153,673
20,222
1,222
52
252,018
224,907
16,530
217
7,305
185,013
587
141,715
5,266
1,188
19,975
5,929
954
9,398
428,121
174,814
153,483
20,048
1,202
80
253,306
225,790
16,752
215
7,370
194,410
633
148,312
5,780
2,075
21,589
6,461
897
8,663
431,708
175,668
154,046
20,312
1,227
84
256,040
228,237
16,830
209
7,683
3,128
3,129
3,180
3,150
3,089
3,034
3,059
3,180
3,080
379
15,032
168,664
87,326
872,390
61,984
3,725
2,743
171,901
90,595
871,253
62,129
910
1,662
172,658
92,032
873,325
62,076
605
1,340
170,290
94,716
865,713
61,888
515
1,482
171,267
92,177
877,717
62,402
149
2,650
173,736
93,810
875,686
62,696
1,938
2,219
169,103
98,066
881,363
62,606
420
9,382
163,409
98,360
884,704
62,114
706
5,851
162,106
97,676
892,457
62,677
1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes federal funds purchased and securities sold under agreement to
repurchase; for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31, 1977, see table 1.13.
Nov. 16
4. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.
Weekly Reporting Banks
1.27
A19
LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1 Billlion or More on
December 31, 1977, Assets and Liabilities
Millions of dollars, Wednesday figures
1983
Account
Nov. 2
1 Cash items in process of collection
2 Demand deposits due from banks in the United States..
3 All other cash and due from depository institutions
4 Total loans and securities
Securities
5 U.S. Treasury securities
6 Trading account
7 Investment account, by maturity
8
One year or less
9
Over one through five years
10
Over five years
11 Other securities
12
Trading account
Investment account
N
14
U.S. government agencies
15
States and political subdivisions, by maturity
16
One year or less
Over one year
17
18
Other bonds, corporate stocks and securities
Loans
19 Federal funds sold1
20 To commercial banks
21 To nonbank brokers and dealers in securities
72 To others
73 Other loans, gross
24 Commercial and industrial
Bankers acceptances and commercial paper
25
76
All other
77
U.S. addressees
78
Non-U .S. addressees
79 Real estate
30 To individuals for personal expenditures
To financial institutions
31
Commercial banks in the United States
32
Banks in foreign countries
33
Sales finance, personal finance companies, etc
34
Other financial institutions
35 To nonbank brokers and dealers in securities
36 To others for purchasing and carrying securities2 . . . .
37 To finance agricultural production
38 All other
39 LESS: Unearned income
40
Loan loss reserve
41 Other loans, net
42 Lease financing receivables
43 All other assets
44 Total assets
Deposits
45 Demand deposits
46 Mutual savings banks
47 Individuals, partnerships, and corporations
48 States and political subdivisions
49 U.S. government
50 Commercial banks in the United States
51 Banks in foreign countries
52 Foreign governments and official institutions
53 Certified and officers' checks
54 Time and savings deposits
55
Savings
56
Individuals and nonprofit organizations
57
Partnerships and corporations operated for profit ..
58
Domestic governmental units
59
All other
60 Time
61
Individuals, partnerships, and corporations
62
States and political subdivisions
63
U.S. government
64
Commercial banks in the United States
Foreign governments, official institutions, and
65
banks
Liabilities for borrowed money
66
Borrowings from Federal Reserve Banks
67 Treasury tax-and-loan notes
68 All other liabilities for borrowed money3
69 Other liabilities and subordinated notes and debentures .
70 Total liabilities
71 Residual (total assets minus total liabilities)4
Nov. 9
Nov. 23
Nov. 30
Dec. 7p
Dec. 14p
Dec. 21 p
Dec. 28"
46,875
6,585
30,516
46,935
6,755
26,405
50,398
7,381
28,915
46,021
5,821
31,783
50,369
7,393
29,203
45,117
7,236
29,381
49,034
6,846
32,321
50,305
7,459
31,567
54,187
8,569
32,579
639,047
639,121
638,882
635,951
643,450
644,299
644,349
644,256
648,458
51,254
9,020
42,234
13,025
26,266
2,943
76,264
6,167
70,097
14,291
52,501
7,164
45,336
3,305
51,944
9,288
42,656
13,376
26,324
2,955
75,820
5,651
70,169
14,192
52,705
7,306
45,399
3,272
53,424
9,576
43,848
13,601
27,724
2,522
75,766
5,537
70,229
14,223
52,702
7,228
45,474
3,304
52,232
8,095
44,136
13,674
27,911
2,550
76,677
6,077
70,600
14,350
52,945
7,360
45,585
3,305
53,353
8,953
44,400
13,759
28,166
2,475
76,110
5,558
70,552
14,246
52,976
7,345
45,631
3,329
54,785
9,743
45,041
14,204
28,243
2,594
76,889
6,334
70,555
14,242
52,969
7,500
45,469
3,343
53,931
8,490
45,442
13,940
28,634
2,867
76,453
5,604
70,849
14,493
53,005
7,357
45,648
3,351
52,889
8,240
44,649
13,677
28,016
2,956
77,284
6,025
71,259
14,556
53,374
7,325
46,049
3,329
51,701
7,560
44,140
13,351
27,825
2,964
78,073
5,753
72,320
14,673
54,341
7,403
46,938
3,306
40,363
28,536
8,727
3,101
483,804
204,609
4,650
199,959
192,817
7,142
130,556
72,344
38,874
27,808
7,684
3,381
485,174
206,375
5,128
201,247
194,024
7,224
130,411
72,416
37,751
26,132
8,584
3,035
484,640
204,480
4,160
200,321
193,163
7,157
130,724
72,614
36,315
24,271
8,917
3,128
483,434
203,951
3,684
200,268
193,120
7,148
130,737
72,999
40,237
29,452
7,978
2,807
486,461
205,065
4,656
200,410
193,256
7,153
130,930
73,402
38,422
25,888
9,046
3,487
487,001
206,051
4,602
201,449
194,317
7,132
130,931
73,892
39,944
27,011
9,380
3,554
486,810
205,853
4,413
201,440
194,517
6,923
131,269
74,526
34,824
22,800
8,382
3,642
492,029
207,132
4,040
203,092
196,041
7,052
131,269
75,362
36,124
24,354
8,362
3,408
495,420
209,274
4,300
204,975
197,725
7,250
131,440
76,409
7,408
8,750
9,438
14,928
9,768
3,073
7,082
15,836
4,394
8,243
471,167
10,554
139,322
7,726
8,764
9,113
15,230
9,122
3,115
7,022
15,880
4,431
8,259
472,483
10,558
142,367
7,546
8,757
9,093
14,798
10,287
2,922
7,012
16,407
4,410
8,289
471,941
10,554
137,761
7,639
8,260
8,962
14,401
10,506
2,926
6,967
16,085
4,389
8,318
470,727
10,580
136,206
7,418
8,575
9,006
14,587
11,151
2,909
6,958
16,460
4,390
8,320
473,750
10,606
137,415
7,404
8,379
9,081
14,861
10,592
2,933
6,872
16,004
4,390
8,407
474,204
10,626
139,832
7,188
7,501
9,102
15,010
10,450
2,937
6,961
16,012
4,391
8,399
474,020
10,620
138,179
8,615
7,859
8,929
14,728
11,441
2,962
7,014
16,718
4,379
8,390
479,260
10,663
139,363
8,333
8,072
9,140
15,483
10,386
3,021
6,976
16,887
4,442
8,418
482,560
10,690
136,105
872,900
872,141
873,892
866,362
878,437
876,492
881,350
883,613
890,588
165,521
675
126,481
4,935
1,009
18,078
6,269
710
7,362
391,342
159,969
141,167
17,671
1,071
60
231,373
206,858
14,845
202
6,341
165,888
674
126,414
3,820
1,380
17,076
5,918
750
9,856
392,352
160,328
141,270
17,965
1,039
54
232,025
207,626
14,839
190
6,241
169,740
702
128,262
4,258
2,088
18,475
6,880
898
8,178
391,644
160,261
140,980
18,111
1,106
64
231,383
206,751
14,885
198
6,368
160,011
534
123,351
4,145
1,857
16,722
5,952
935
6,514
394,295
160,116
140,759
18,243
1,046
68
234,180
209,185
15,161
194
6,490
172,163
649
130,841
4,522
1,757
18,481
6,453
1,275
8,184
395,347
160,777
141,300
18,342
1,080
55
234,570
209,599
14,866
195
6,822
164,870
595
126,370
4,293
1,673
17,676
6,002
809
7,452
396,187
162,455
142,731
18,554
1,098
71
233,732
208,937
14,680
212
6,869
169,474
648
130,941
4,289
1,973
17,196
5,949
760
7,719
395,635
161,667
142,006
18,526
1,069
67
233,968
208,836
14,857
198
7,017
171,399
561
131,048
4,448
1,044
18,337
5,881
954
9,126
396,430
161,310
141,800
18,363
1,066
80
235,121
209,593
15,110
196
7,042
180,291
602
137,322
5,037
1,897
19,869
6,408
845
8,310
399,329
161,918
142,190
18,555
1,089
83
237,411
211,782
15,062
190
7,296
3,128
3,129
3,180
3,150
3,089
3,034
3,059
3,180
3,080
379
14,220
158,270
85,198
3,686
2,580
161,055
88,453
813
1,494
162,261
89,830
580
1,232
159,852
92,480
480
1,388
160,742
89,932
149
2,490
162,591
91,559
1,938
2,072
158,010
95,655
302
8,849
152,636
95,875
622
5,521
150,995
95,217
814,929
814,014
815,781
808,451
820,053
817,846
822,784
825,491
831,974
57,970
58,127
58,111
57,911
58,384
58,646
58,566
58,122
58,614
1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes federal funds purchased and securities sold under agreement to
repurchase; for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31, 1977, see table 1.13.
Nov. 16
4. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.
A20
1.28
DomesticNonfinancialStatistics • January 1984
LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures
1983
Account
Nov. 2
1 Cash items in process of collection
2 Demand deposits due from banks in the United States..
3 All other cash and due from depository institutions . . . .
4 Total loans and securities1
Securities
2
5 U.S. Treasury securities
6 Trading account2
7 Investment account, by maturity
8
One year or less
9
Over one through five years
10
Over five years
11 Other securities2 2
12 Trading account
13 Investment account
14
U.S. government agencies
15
States and political subdivisions, by maturity
16
One year or less
17
Over one year
18
Other bonds, corporate stocks and securities
Loans
19 Federal funds sold3
20 To commercial banks
21 To nonbank brokers and dealers in securities
22 To others
23 Other loans, gross
24 Commercial and industrial
25
Bankers' acceptances and commercial paper
26
All other
27
U.S. addressees
28
Non-U.S. addressees
29 Real estate
30 To individuals for personal expenditures
To financial institutions
31
Commercial banks in the United States
32
Banks in foreign countries
33
Sales finance, personal finance companies, etc
34
Other financial institutions
35 To nonbank brokers and dealers in securities 4
36 To others for purchasing and carrying securities . . . .
37 To finance agricultural production
38 All other
39 LESS: Unearned income
40
Loan loss reserve
41 Other loans, net
42 Lease financing5 receivables
43 All other assets
44 Total assets
Deposits
45 Demand deposits
46 Mutual savings banks
47 Individuals, partnerships, and corporations
48 States and political subdivisions
49 U.S. government
50 Commercial banks in the United States
51 Banks in foreign countries
52 Foreign governments and official institutions
53 Certified and officers' checks
54 Time and savings deposits
55 Savings
56
Individuals and nonprofit organizations
57
Partnerships and corporations operated for profit ..
58
Domestic governmental units
59
All other
60 Time
61
Individuals, partnerships, and corporations
62
States and political subdivisions
U.S. government
63
64
Commercial banks in the United States
65
Foreign governments, official institutions, and
banks
Liabilities for borrowed money
66 Borrowings from Federal Reserve Banks
67 Treasury tax-and-loan notes
68 All other liabilities for borrowed money6
69 Other liabilities and subordinated notes and debentures .
70 Total liabilities
71 Residual (total assets minus total liabilities)7
1.
2.
3.
4.
5.
Excludes trading account securities.
Not available due to confidentiality.
Includes securities purchased under agreements to resell.
Other than financial institutions and brokers and dealers.
Includes trading account securities.
Nov. 9
Nov. 16
Nov. 23
Nov. 30
Dec. 7p
Dec. 14^
Dec. 21P
Dec. 28P
14,002
978
6,069
148,231
19,123
1,302
3,579
146,850
15,874
1,383
5,099
147,867
13,488
814
5,434
147,994
16,566
1,335
5,264
150,616
14,245
1,408
5,805
148,742
16,933
1,290
6,822
150,019
16,935
1,265
5,5%
149,697
17,190
1,233
5,007
151,043
9,440
2,455
6,078
907
9,845
2,899
6,039
907
10,366
3,083
6,847
435
10,530
3,123
6,972
435
10,461
2,972
7,053
436
10,041
2,667
6,854
520
9,904
2,430
6,778
695
9,506
2,421
6,318
766
9,069
2,416
5,894
759
14,919
1,476
12,712
1,895
10,817
731
15,063
1,476
12,855
2,004
10,851
732
14,998
1,408
12,864
1,974
10,890
726
15,152
1,401
13,010
2,019
10,990
741
15,145
1,396
13,007
1,940
11,067
742
15,254
1,389
13,131
2,011
11,120
734
15,316
1,389
13,191
2,029
11,162
736
15,634
1,387
13,505
1,985
11,520
741
16,211
1,384
14,086
2,047
12,039
741
11,907
5,361
4,821
1,724
116,052
57,958
1,727
56,232
54,422
1,810
20,646
12,693
10,571
4,615
4,042
1,914
115,461
58,687
1,815
56,871
55,081
1,791
20,580
12,717
10,183
3,968
4,362
1,853
116,415
58,314
1,452
56,862
55,090
1,772
20,622
12,718
11,390
4,912
4,603
1,876
115,038
57,500
1,151
56,349
54,554
1,795
20,630
12,791
13,136
7,629
3,951
1,557
116,010
57,644
1,563
56,081
54,288
1,793
20,580
12,829
11,678
5,229
4,375
2,074
115,928
58,252
1,478
56,774
54,973
1,801
20,496
12,937
13,195
6,458
4,618
2,119
115,787
58,113
1,417
56,696
54,883
1,812
20,522
13,040
10,580
4,057
4,166
2,357
118,135
57,968
1,171
56,797
54,939
1,858
20,613
13,168
11,891
5,644
4,077
2,169
118,023
58,793
1,307
57,486
55,622
1,864
20,412
13,286
1,605
2,984
3,992
4,230
6,089
668
691
4,495
1,459
2,627
111,966
2,027
64,354
235,661
1,618
2,753
3,673
4,356
5,115
681
698
4,584
1,460
2,629
111,372
2,029
65,971
238,855
1,659
2,901
3,678
4,091
6,405
648
701
4,678
1,454
2,642
112,320
2,046
63,505
235,775
1,607
2,564
3,529
3,979
6,669
624
661
4,481
1,456
2,661
110,922
2,047
62,775
232,553
1,589
2,831
3,625
4,112
7,058
590
661
4,491
1,457
2,679
111,874
2,048
62,678
238,507
1,597
2,732
3,749
4,086
6,387
607
615
4,470
1,458
2,702
111,768
2,035
64,108
236,343
1,573
2,438
3,718
4,220
6,412
628
637
4,486
1,460
2,722
111,604
2,038
. 62,396
239,498
2,180
2,765
3,772
4,295
7,476
662
652
4,583
1,464
2,693
113,978
2,077
61,279
236,850
2,122
2,932
3,797
4,454
6,113
665
611
4,838
1,474
2,678
113,872
2,067
60,530
237,071
45,951
312
31,986
734
169
4,048
5,043
522
3,137
73,938
27,044
24,084
2,735
186
39
46,893
41,292
2,030
15
2,278
51,064
341
33,197
592
549
4,978
4,678
571
6,157
73,844
27,222
24,148
2,831
205
38
46,622
41,101
2,047
15
2,209
47,842
358
31,796
626
573
4,162
5,628
686
4,013
73,805
27,361
24,186
2,918
210
46
46,444
40,680
2,101
19
2,362
44,301
232
30,532
606
410
4,355
4,626
725
2,814
74,919
27,422
24,235
2,949
188
50
47,497
41,679
2,101
18
2,439
50,404
281
34,014
556
375
5,103
5,135
1,055
3,886
75,133
27,416
24,334
2,869
175
38
47,717
41,814
2,037
18
2,626
46,674
263
31,860
612
372
4,480
4,800
632
3,655
74,994
28,115
24,909
2,963
188
55
46,878
41,120
1,968
18
2,596
49,388
352
34,109
598
523
4,719
4,647
574
3,866
74,944
28,050
24,870
2,957
173
50
46,893
41,018
2,009
15
2,689
49,528
265
33,372
626
272
4,567
4,579
770
5,078
75,071
28,237
24,982
3,019
171
66
46,833
40,798
2,115
15
2,620
51,529
278
35,433
608
571
4,518
5,201
661
4,258
75,251
28,234
25,048
2,945
172
68
47,017
41,018
2,101
14
2,724
1,278
1,251
1,281
1,260
1,221
1,175
1,161
1,285
1,159
300
3,674
55,783
36,087
215,732
19,929
2,040
603
54,475
36,737
218,764
20,092
350
359
56,099
37,218
215,674
20,102
400
336
55,027
37,579
212,562
19,991
300
447
56,899
35,215
218,398
20,109
608
57,454
36,313
216,043
20,300
1,790
636
54,699
37,786
219,243
20,255
2,723
51,806
37,816
216,944
19,906
305
1,704
51,444
36,597
216,830
20,242
6. Includes federal funds purchased and securities sold under agreements to
repurchase.
7. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
Weekly Reporting Banks
1.29
LARGE WEEKLY REPORTING COMMERCIAL BANKS
A21
Balance Sheet Memoranda
Millions of dollars, Wednesday figures
1983
Account
Nov. 2
Nov. 9
Nov. 16
Nov. 23
Nov. 30
Dec. 1''
Dec. 14"
Dec. 21 p
Dec. 28p
BANKS WITH ASSETS OF $750 MILLION OR MORE
1 Total loans (gross) and securities
adjusted1
1
2 Total loans (gross) adjusted
2
3 Demand deposits adjusted
662,042
521,598
107,494
662,753
522,015
108,532
664,344
522,229
106,603
663,278
521,369
103,237
665,934
523,488
109,914
670,563
525,818
108,804
670,160
526,618
109,752
673,344
530,013
110,407
677,582
534,228
113,266
4 Time deposits in accounts of $100,000 or more
5 Negotiable CDs
6 Other time deposits
140,565
88,424
52,142
140,750
88,322
52,429
140,098
87,427
52,671
142,768
89,542
53,226
142,506
89,424
53,082
142,010
88,931
53,079
142,336
89,378
52,958
143,365
89,922
53,443
145,214
91,918
53,296
2,594
2,001
592
2,536
1,945
591
2,559
1,963
596
2,490
1,904
586
2,385
1,839
546
2,432
1,850
583
2,401
1.831
570
2,386
1,837
549
2,364
1,810
555
10 Total loans (gross) and securities
adjusted1
1
11 Total loans (gross) adjusted
2
12 Demand deposits adjusted
615,741
488,223
99,558
616,277
488,513
100,497
617,903
488,713
98,778
616,748
487,840
95,410
619,290
489,827
101,555
623,804
492,130
100,404
622,940
492,556
101,272
625,611
495,438
101,713
628,632
498,857
104,337
13 Time deposits in accounts of $100,000 or more
14 Negotiable CDs
15 Other time deposits
131,721
83,424
48,297
131,806
83,279
48,528
131,168
82,416
48,753
133,727
84,523
49,204
133,714
84,634
49,079
133,322
84,202
49,119
133,528
84,473
49,054
134,460
84,896
49,565
136,007
86,618
49,389
2,544
1,966
578
2,486
1,909
578
2,510
1,928
582
2,434
1,869
565
2,331
1,806
525
2,369
1,807
562
2,338
1,788
549
2,323
1,795
529
2,302
1,767
534
145,350
120,992
27,732
144,707
119,799
26,414
146,336
120,971
27,233
145,592
119,910
26,047
145,534
119,928
28,360
146,076
120,780
127,577
146,170
120,951
27,214
147,617
122,478
27,754
147,429
122,148
29,249
30,978
18,528
12,450
30,574
18,143
12,431
30,573
18,015
12,558
31,608
19,118
12,490
31,546
18,990
12,556
31,157
18,709
12,448
31,297
18,873
12,424
31,083
18,522
12,561
31,357
19,001
12,356
7 Loans sold outright to affiliates3
8 Commercial and industrial
9 Other
BANKS WITH ASSETS OF $1 BILLION OR MORE
16 Loans sold outright to affiliates3
17 Commercial and industrial
18 Other
BANKS IN NEW YORK CITY
19 Total loans (gross) and securities
adjusted1'4
1
20 Total loans (gross) adjusted
2
21 Demand deposits adjusted
22 Time deposits in accounts of $100,000 or more
23 Negotiable CDs
24 Other time deposits
1. Exclusive of loans and federal funds transactions with domestic commercial
banks.
2. All demand deposits except U.S. government and domestic banks less cash
items in process of collection.
3. 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,
4. Excludes trading account securities.
A22
1.30
DomesticNonfinancialStatistics • January 1984
LARGE WEEKLY REPORTING BRANCHES A N D AGENCIES OF FOREIGN B A N K S
Assets and Liabilities
Millions of dollars, Wednesday figures
1983
Account
Nov. 2
1
2
3
4
5
6
7
8
9
10
Nov. 9
Nov. 16
Nov. 23
Nov. 30
Dec. IP
Dec. I4P
Dec. 21"
Dec. 28"
Cash and due from depository institutions .
Total loans and securities
U.S. Treasury securities
Other securities 1
Federal funds sold
To commercial banks in 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 United States...
Banks in foreign countries
Nonbank financial institutions
For purchasing and carrying securities ..
All other
Other assets (claims on nonrelated
parties)
Net due from related institutions
Total assets
5,998
42,029
4,711
972
2,496
2,383
113
33,849
18,536
6,066
43,487
4,664
957
4,291
4,159
132
33,573
18,742
6,230
43,173
4,755
958
3,669
3,552
117
33,791
18,960
6,552
43,878
4,675
951
3,874
3,626
248
34,377
18,913
6,605
43,668
4,594
966
3,457
3,282
175
34,651
19,313
6,180
43,048
4,678
966
2,865
2,707
158
j 34,539
19,191
6,370
44,947
4,658
1,020
3,841
3,519
322
35,428
19,661
7,213
45,090
4,634
1,036
3,971
3,722
249
35,449
19,611
6,068
45,609
4,644
1,036
4,476
4,195
281
35,454
19,463
2,855
15,681
13,792
1,889
11,053
8,628
1,800
626
683
3,577
2,839
15,903
14,047
1,857
10,672
8,474
1,620
578
590
3,569
2,899
16,061
14,216
1,846
10,607
8,473
1,542
591
626
3,597
3,064
15,848
13,926
1,923
11,232
8,974
1,600
657
480
3,753
3,069
16,244
14,417
1,827
10,5%
8,255
1,660
681
948
3,793
3,121
16,070
14,243
1,828
10,707
8,394
1,642
671
964
3,677
3,294
16,367
14,533
1,834
11,010
8,662
1,648
700
1,132
3,626
3,254
16,357
14,546
1,811
11,412
9,199
1,572
642
822
3,603
3,256
16,207
14,377
1,830
11,075
8,820
1,584
671
1,106
3,810
11,905
12,552
72,484
11,926
12,558
74,037
12,130
12,042
73,576
12,359
12,449
75,238
12,642
11,769
74,684
12,738
12,654
74,621
12,673
11,542
75,532
12,967
9,769
75,038
12,421
9,944
74,043
23 Deposits or credit balances2
24 Credit balances
25 Demand deposits
26
Individuals, partnerships, and
corporations
27
Other
28 Total time and savings
29
Individuals, partnerships, and
corporations
30
Other
31 Borrowings3
32 Federal funds purchased4
33
From commercial banks in United
States
34
From others
35 Other liabilities for borrowed money....
To commercial banks in United States
36
37
To others
38 Other liabilities to nonrelated parties
39 Net due to related institutions
40 Total liabilities
19,380
202
1,775
19,422
154
1,799
19,257
157
1,768
20,387
151
1,874
20,662
143
1,792
20,625
145
1,673
21,537
125
1,939
22,498
165
2,142
22,485
174
1,930
873
901
17,404
853
946
17,468
786
982
17,331
855
1,019
18,362
882
910
18,728
820
853
18,808
860
1,079
19,473
851
1,292
20,191
914
1,016
20,381
14,776
2,627
34,666
11,102
14,786
2,682
34,638
10,685
14,584
2,747
34,265
11,190
15,655
2,707
34,025
10,063
15,999
2,729
33,365
10,157
15,935
2,873
33,755
10,880
16,461
3,012
33,382
10,453
17,046
3,145
31,115
7,919
17,217
3,163
30,862
7,887
9,152
1,951
23,564
19,647
3,917
12,799
5,639
72,484
8,474
2,211
23,953
20,275
3,678
12,685
7,292
74,037
9,065
2,126
23,074
19,466
3,608
13,016
7,039
73,576
8,035
2,028
23,962
19,913
4,049
13,404
7,422
75,238
8,530
1,628
23,208
19,390
3,817
13,377
7,280
74,684
8,974
1,906
22,875
19,007
3,868
13,626
6,615
74,621
8,421
2,032
22,929
19,165
3,764
13,550
7,063
75,532
5,798
2,121
23,196
19,475
3,721
14,544
6,881
75,038
5,826
2,061
22,976
19,353
3,622
13,351
7,345
74,043
31,018
25,334
30,854
25,232
31,147
25,434
31,277
25,651
32,130
26,570
31,947
26,303
32,766
27,088
32,169
26,499
32,595
26,915
11
12
13
14
15
16
17
18
19
20
21
22
MEMO
41 Total loans (gross) and securities
adjusted*
42 Total loans (gross) adjusted5
1. Includes securities purchased under agreements to resell.
2. Balances due to other than directly related institutions.
3. Borrowings from other than directly related institutions.
4. Includes securities sold under agreements to repurchase.
5. Excludes loans and federal funds transactions with commercial banks in
United States.
IPC Demand Deposits
1.31
A23
GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations'
Billions of dollars, estimated daily-average balances
Commercial banks
Type of holder
1982
1978
1979 2
1980
1981
Dec.
Dec.
Dec.
Dec.
Mar.
1983
Sept.
June
Dec.
Mar.
June
1 All holders—Individuals, partnerships, and
corporations
294.6
302.2
315.5
288.9
268.9
271.5
276.7
295.4
283.5
289.5
2
3
4
5
6
27.8
152.7
97.4
2.7
14.1
27.1
157.7
99.2
3.1
15.1
29.8
162.8R
102.4
3.3
17.2
28.0
154.8
86.6
2.9
16.7
27.8
138.7
84.6
3.1
14.6
28.6
141.4
83.7
2.9
15.0
31.9
142.9
83.3
2.9
15.7
35.5
151.7
88.1
3.0
17.1
34.0
144.4
85.5
3.2
16.4
35.1
147.7
86.9
3.0
16.8
Financial business
Nonfinancial business
Consumer
Foreign
Other
Weekly reporting banks
1982
1978
1979 4
1980
1981
Dec.
Dec.
Dec.
Dec.
Mar.
7
All holders—Individuals, partnerships, and
corporations
8
Financial business
Nonfinancial business
Consumer
Foreign
Other
9
10
11
12
Sept.
Dec.
Mar.
June
147.0
139.3
147.4
137.5
126.8
127.9
132.1
144.0
140.7
141.9
19.8
79.0
38.2
2.5
7.5
20.1
74.1
34.3
3.0
7.8
21.8
78.3
35.6
3.1
8.6
21.0
75.2
30.4
2.8
8.0
20.2
67.1
29.2
2.9
7.3
20.2
67.7
29.7
2.8
7.5
23.4
68.7
29.6
2.7
7.7
26.7
74.2
31.9
2.9
8.4
25.2
72.7
31.2
3.0
8.6
26.3
73.1
30.4
2.9
9.3
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.
2. Beginning with the March 1979 survey, the demand deposit ownership
survey sample was reduced to 232 banks from 349 banks, and the estimation
procedure was modified slightly. To aid in comparing estimates based on the old
and new reporting sample, the following estimates in billions of dollars for
December 1978 have been constructed using the new smaller sample; financial
business, 27.0; nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and
other, 15.1.
June
1983
3. Demand deposit ownership survey estimates for June 1981 are not available
due to unresolved reporting errors.
4. After the end of 1978 the large weekly reporting bank panel was changed to
170 large commercial banks, each of which had total assets in domestic offices
exceeding $750 million as of Dec. 31, 1977. See "Announcements," p. 408 in the
May 1978 BULLETIN. Beginning in March 1979, demand deposit ownership
estimates for these large banks are constructed quarterly on the basis of 97 sample
banks and are not comparable with earlier data. The following estimates in billions
of dollars for December 1978 have been constructed for the new large-bank panel;
financial business, 18.2; nonfinancial business, 67.2; consumer, 32.8; foreign, 2.5;
other, 6.8.
A24
1.32
DomesticNonfinancialStatistics • January 1984
COMMERCIAL PAPER A N D BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1983
1978
Dec.
Instrument
1979'
Dec.
1980
Dec.
1981
Dec.
1982
Dec.2
June
July
Aug.
Sept.
Oct.
Nov.
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
83,438
112,803
124,374
165,455
166,208
170,716
172,199
174,669
176,775
175,924
180,206
12,181
17,359
19,599
29,904
34,067
39,850
39,027
40,749
39,963
38,128'
40,890
2,192
2,367
2,303
2,195
2,341
90,628
91,600
92,819
93,820
35,085
43,292
34,856
45,212
34,622
44,977
35,001
45,496
3
Financial companies 4
Dealer-placed paper
Total
Bank-related (not seasonally
adjusted)
Directly placed paper5
4 Total
5 Bank-related (not seasonally
adjusted)
6 Nonfinancial companies6
2
3
2,784
3,521
3,561
6,045
2,516
51,647
64,757
67,854
81,715
84,183
87,749
89,585
12,314
19,610
17,598
30,687
22,382
36,921
26,914
53,836
32,034
47,958
33,420
43,117
33,613
43,587
2,353
Bankers dollar acceptances (not seasonally adjusted)
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
33,700
45,321
54,744
69,226
79,543
70,907
72,710
73,977
73,569'
72,902'
8,579
7,653
927
9,865
8,327
1,538
10,564
8,963
1,601
10,857
9,743
1,115
10,910
9,471
1,439
9,147
7,998
1,148
9,008
8,231
777
8,498
7,466
1,033
9,205
7,986
1,219
9,501
8,212
1,289
587
664
24,456
704
1,382
33,370
776
1,791
41,614
195
1,442
56,731
1,480
949
66,204
203
792
60,968
0
670
63,032
209
717
65,961
0
622
64,942
0
483
62,917
8,574
7,586
17,541
10,270
9,640
25,411
11,776
12,712
30,257
14,765
15,400
39,060
17,683
16,328
45,531
14,324
16,356
40,226
15,122
16,286
41,301
14,487
16,476
43,514
14,653'
16,215
43,201
14,829'
16,036
42,037
1. A change in reporting instructions results in offsetting shifts in the dealerplaced and directly placed financial company paper in October 1979.
2. 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.
3. Institutions engaged primarily in activities such as, but not limited to,
commercial, savings, and mortgage banking; sales, personal, and mortgage
1.33
financing; factoring, finance leasing, and other business lending; insurance
underwriting; and other investment activities.
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.
PRIME RATE CHARGED BY B A N K S on Short-Term Business Loans
Percent per annum
Effective Date
Effective date
-Nov. 24
Dec. 1
16.00
-Feb. 18
23
July 20
29
Aug. 2
17.00
16.50
16.00
15.50
15.00
14.50
14.00
16
18
15.75
1982—Aug. 23
Oct. 7
14
Nov. 22
1983—Jan. 11
Feb. 28
Aug. 8
Rate
13.50
13.00
12.00
11.50
11.00
10.50
11.00
n.a.
Month
1982—Jan
Feb
Mar
May
June
July
Aug
Sept
Oct
Dec
Average
rate
15.75
16.56
16.50
16.50
16.50
16.50
16.26
14.39
13.50
12.52
11.85
11.50
Month
1983—Jan
Feb
Mar
Apr
May
July
Aug
Sept
Oct
Nov
Dec
Business
1.34
Lending
A25
TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 7-11, 1983
Size of loan (in thousands of dollars)
Item
All
sizes
1-24
25-49
50-99
100-499
500-999
and over
SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS
1
2
3
4
5
6
7
8
9
10
11
12
13
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
With fixed rates
With floating rates
Weighted-average interest
rate (percent per annum)..
Interquartile range1
With fixed rates
With floating rates
Percentage of amount of loans
With floating rate
Made under commitment
With no stated maturity
With one-day maturity
26,906,178
130,514
1.3
.7
2.5
10.95
10.27-11.18
10.80
11.20
679,407
91,718
3.6
3.2
4.5
13.91
12.68-14.85
14.26
13.28
460,408
13,836
3.7
3.6
3.8
13.78
12.55-14.56
13.79
13.78
554,091
8,922
4.0
3.9
4.1
13.23
12.36-13.80
13.70
12.93
2,042,372
11,597
4.9
3.8
5.6
12.34
11.46-12.96
12.63
12.21
726,993
1,077
3.1
1.5
4.8
11.82
11.32-12.55
11.24
12.14
22,442,908
3,364
.8
.4
1.7
10.59
10.24-10.75
10.54
10.68
36.7
68.4
12.5
17.4
35.7
31.3
15.7
2.1
60.0
30.5
27.1
.0
61.3
37.2
26.7
.2
69.2
43.8
22.7
.5
64.8
65.2
38.5
3.3
31.8
73.4
10.0
20.7
1-99
LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS
14
15
16
17
18
19
20
21
22
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
With fixed rates
With floating rates
Weighted-average interest
rate (percent per annum) ..
Interquartile range1
With fixed rates
With floating rates
Percentage of amount of loans
23 With floating rate
24 Made under commitment
2,834,473
19,150
50.8
50.7
50.8
12.94
11.38-12.68
15.19
12.13
367,008
16,303
39.0
42.0
36.3
14.03
12.68-14.65
14.95
13.21
426,052
1,851
40.7
45.9
36.6
17.89
12.40-28.42
24.52
12.60
168,157
246
48.7
55.0
47.6
12.03
11.46-12.68
11.51
12.12
1,873,256
750
55.5
57.1
55.2
11.68
10.92-12.40
10.68
11.93
73.6
59.1
52.9
42.7
55.6
45.3
85.8
66.6
80.6
64.8
1-24
CONSTRUCTION AND LAND DEVELOPMENT LOANS
25
26
27
28
29
30
31
32
33
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
With fixed rates
With floating rates
Weighted-average interest
rate (percent per annum) ..
Interquartile range1
With fixed rates
With floating rates
34
35
36
37
38
Percentage of amount of loans
With floating rate
Secured by real estate
Made under commitment
With no stated maturity
With one-day maturity
Type of construction
39 1- to 4-family
40 Multifamily
41 Nonresidential
LOANS TO FARMERS
42
43
44
45
46
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest
rate (percent per annum) ..
Interquartile range1
47
48
49
50
51
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
50-99
500 and over
990,925
23,236
8.5
9.0
8.2
13.25
12.13-13.88
13.56
13.09
150,071
17,606
6.9
8.5
5.4
14.16
13.43-14.93
13.98
14.32
110,531
3,315
7.1
7.7
6.3
14.58
13.42-15.56
14.94
14.16
83,576
1,303
9.6
8.2
12.3
14.19
13.31-14.89
14.73
13.32
178,568
806
13.2
13.5
13.2
13.02
12.40-13.30
12.90
13.04
468,178
206
7.4
9.3
6.6
12.57
12.12-13.24
12.43
12.63
65.1
92.4
64.4
4.0
.0
52.7
85.3
75.1
2.7
.0
46.5
98.0
59.7
2.9
.0
38.0
95.8
32.6
6.8
.0
85.7
95.9
74.7
6.4
.0
70.5
91.4
63.9
3.2
.0
33.9
15.9
50.3
47.5
3.5
49.0
67.3
4.5
28.3
76.1
9.9
14.0
28.5
22.4
49.1
16.1
21.1
62.8
All sizes
1-9
10-24
25-49
50-99
100-249
1,467,055
58,634
6.8
13.64
12.68-14.50
137,726
36,687
6.4
14.30
13.88-14.74
177,981
11,551
7.6
14.25
13.42-14.71
171,295
5,309
6.6
13.92
13.19-14.49
193,955
2,774
7.5
13.94
13.42-14.51
250,340
1,738
11.9
13.82
13.80-14.45
535,758
845
4.1
12.98
11.59-14.23
14.00
13.87
13.37
13.91
12.93
14.22
14.30
14.26
14.50
14.32
13.99
15.13
14.11
14.09
14.08
14.20
14.14
14.06
13.51
13.32
14.12
13.83
13.78
13.45
13.72
13.92
13.37
11.54
1. Interest rate range that covers the middle 50 percent of the total dollar
amount of loans made.
2. Fewer than 10 sample loans.
25-49
(*)
13.78
250 and over
(*)
(*)
13.13
NOTE. For more detail, see the Board's E.2 (111) statistical release,
(*)
12.54
A26
1.35
DomesticNonfinancialStatistics • January 1984
INTEREST RATES Money and Capital Markets
Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.
1983
Instrument
1981
1982
1983, week ending
1983
Sept.
Oct.
Nov.
Dec.
Dec. 2
Dec. 9
Dec. 16
Dec. 23
Dec. 30
MONEY MARKET RATES
1 Federal funds 12
Commercial paper3'4
2 1-month
3 3-month
4 6-month
Finance paper, directly placed3 4
5 1-month
6 3-month
7 6-month
Bankers acceptances4 5
8 3-month
9 6-month
Certificates of deposit, secondary market6
10 1-month
11 3-month
12 6-month
13 Eurodollar deposits,4 3-month2
U.S. Treasury bills 7
Secondary market
14
3-month
15
6-month
16
1-year
Auction average8
17
3-month
18
6-month
19
16.38
12.26
9.09
9.45
9.48
9.34
9.47
9.27
9.49
9.52
9.62
8.96
15.69
15.32
14.76
11.83
11.89
11.89
8.87
8.88
8.89
9.19
9.24
9.28
9.03
8.99
8.98
9.10
9.10
9.09
9.56
9.53
9.50
9.06
9.10
9.11
9.33
9.33
9.35
9.70
9.68
9.68
9.78
9.72
9.64
9.66
9.55
9.47
15.30
14.08
13.73
11.64
11.23
11.20
8.80
8.70
8.69
9.15
9.09
9.09
8.99
8.82
8.79
9.06
8.87
8.84
9.51
9.16
9.11
9.05
8.93
8.92
9.29
9.09
9.08
9.67
9.21
9.14
9.74
9.25
9.15
9.49
9.20
9.15
15.32
14.66
11.89
11.83
8.90
8.91
9.23
9.26
9.01
8.97
9.16
9.13
9.52
9.45
9.17
9.16
9.38
9.39
9.70
9.64
9.66
9.52
9.46
9.31
15.91
15.91
15.77
16.79
12.04
12.27
12.57
13.12
8.96
9.07
9.27
9.56
9.28
9.39
9.64
9.82
9.11
9.18
9.31
9.54
9.22
9.36
9.51
9.79
9.67
9.69
9.85
10.08
9.22
9.34
9.53
9.78
9.41
9.52
9.79
9.83
9.78
9.84
10.06
10.18
9.90
9.83
9.91
10.36
9.77
9.67
9.72
10.06
14.03
13.80
13.14
10.61
11.07
11.07
8.61
8.73
8.80
9.00
9.15
9.27
8.64
8.83
8.98
8.76
8.93
9.08
9.00
9.17
9.24
8.88
9.05
9.15
8.97
9.16
9.23
9.09
9.24
9.28
9.00
9.19
9.25
8.96
9.14
9.22
14.029
13.776
13.159
10.686
11.084
11.099
8.63
8.75
8.86
9.05
9.19
9.64
8.71
8.90
9.13
8.71
8.89
9.03
8.96
9.14
9.16
8.90
9.05
9.09
9.00
9.16
8.93
9.12
9.04
9.24
8.94
9.14
9.23
14.78
14.56
12.27
12.80
9.57
10.21
10.16
10.79
9.81
10.57
9.94
10.66
10.11
10.84
10.10
10.79
12.92
13.01
13.06
13.00
12.92
12.76
10.45
10.80
11.02
11.10
11.34
11.18
11.07
11.43
11.61
11.65
11.82
11.63
10.87
11.28
11.47
11.54
11.77
11.58
10.96
11.41
11.61
11.69
11.92
11.75
11.13
11.54
11.78
11.83
12.02
11.88
11.10
11.52
11.76
11.82
12.03
11.87
10.15
10.89
11.05
11.21
11.62
11.88
11.93
12.11
11.98
10.13
10.86
14.44
14.24
14.06
13.91
13.72
13.44
10.01
10.69
10.85
10.98
11.38
11.59
11.64
11.85
11.69
11.13
11.55
11.77
11.82
12.03
11.90
10.09
10.85
10 95
11.10
11.54
11.74
11.79
11.97
11.84
12.87
12.23
10.84
11.26
11.21
11.32
11.44
11.26
11.42
11.53
11.46
11.41
10.43
11.76
11.33
10.88
12.48
11.66
8.80
10.17
9.51
8.97
10.10
9.58
8.93
10.04
9.66
9.01
10.01
9.75
9.34
10.29
9.89
9.30
10.25
9.82
9.35
10.30
9.91
9.45
10.30
10.04
9.35
10.30
9.92
9.25
10.30
9.76
15.06
14.17
14.75
15.29
16.04
14.94
13.79
14.41
15.43
16.11
12.78
12.04
12.42
13.10
13.55
12.91
12.37
12.62
13.11
13.55
12.79
12.25
12.49
12.97
13.46
12.93
12.41
12.61
13.09
13.61
13.07
12.57
12.76
13.21
13.75
12.92
12.39
12.60
13.06
13.63
13.01
12.51
12.70
13.12
13.69
13.13
12.66
12.81
13.23
13.79
13.13
12.61
12.82
13.30
13.25
13.09
12.56
12.76
13.25
13.79
15.56
15.56
14.41
14.45
12.10
12.15
12.53
12.50
12.43
12.42
12.64
12.65
12.62
12.75
12.62
12.65
12.79
12.87
12.73
12.68
12.36
5.20
12.53
5.81
11.0
11.06
4.24
10.97
4.25
11.12
4.31
11.49
4.32
11.23
4.27
11.36
4.29
11.47
4.35
11.45
4.35
11.66
4.29
CAPITAL MARKET RATES
20
21
V
23
24
25
26
27
28
U.S. Treasury notes and
bonds9
Constant maturities10
1-year
2-year
2-w-year"
3-year
5-year
7-year
10-year
20-year
30-year
29
Composite12
Over 10 years (long-term)
State and local notes and bonds
Moody's series13
30
Aaa
31
Baa
32 Bond Buyer series14
33
34
35
36
37
<8
39
Corporate bonds 15
Seasoned issues
All industries
Aaa
Aa
A
Baa
Aaa utility bonds15
Recently offered issues
MEMO: Dividend/price ratio17
40 Preferred stocks
41 Common stocks
4.40
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 statement week averages—that is, averages for the
week ending Wednesday.
3. 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.
4. Yields are quoted on a bank-discount basis, rather than an investment yield
basis (which would give a higher figure).
5. 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).
6. Unweighted average of offered rates quoted by at least five dealers early in
the day.
7. Unweighted average of closing bid rates quoted by at least five dealers.
8. 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.
9. Yields are based on closing bid prices quoted by at least five dealers.
10. 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.
11. Each biweekly figure is the average of five business days ending on the
Monday following the date indicated. Until Mar. 31, 1983, the biweekly rate
determined the maximum interest rate payable in the following two-week period
on 2-'/2-year small saver certificates. (See table 1.16.)
12. Averages of yields (to maturity or call) for all outstanding bonds neither due
nor callable in less than 10 years, including several very low yielding "flower"
bonds.
13. General obligations only, based on figures for Thursday, from Moody's
Investors Service.
14. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
15. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
16. Compilation of the Federal Reserve. Issues included are long-term (20
years or more). New-issue yields are based on quotations on date of offering;
those on recently offered issues (included only for first 4 weeks after termination
of underwriter price restrictions), on Friday close-of-business quotations.
17. 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.
Securities Markets
1.36
STOCK MARKET
All
Selected Statistics
1983
Indicator
1980
1981
1982
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2 Industrial
3 Transportation
4 Utility
5 Finance
6 Standard & Poor's Corporation
(1941-43 = 10)' . . .
7 American Stock Exchange2
(Aug. 31, 1973 = 100)
68.06
78.64
60.52
37.35
64.28
118.71
74.02
85.44
72.61
38.90
73.52
128.05
68.93
78.18
60.41
39.75
71.99
119.71
90.61
104.46
85.26
46.22
99.07
157.71
94.61
109.43
89.07
47.62
102.45
164.10
96.43
112.52
92.22
46.76
101.22
166.39
96.74
113.21
92.91
46.61
99.60
166.96
93.96
109.50
88.06
46.94
95.76
162.42
96.70
112.76
94.56
48.16
97.00
167.16
96.78
112.87
95.41
48.73
94.79
167.65
95.36
110.77
97.68
48.50
94.48
165.23
94.92
110.65
98.79
47.00
94.25
164.36
150.47
171.79
141.31
202.51
223.97
237.51
244.03
230.10
234.36
223.76
218.42
221.31
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
44,867
6,377
46,967
5,346
64,617
5,283
89,627
8,576
93,016
12,260
89,729
10,874
79,508
8,199
74,191
6,329
82,866
6,629
85,445
7,751
86,405
6,160
88,041
6,939
f
Customer financing (end-of-period balances, in millions of dollars)
10 Regulated margin credit at brokers-dealers
11 Margin stock4
12 Convertible bonds
13 Subscription issues
Free credit balances at brokers5
14 Margin-account
15 Cash-account
3
[
14,721
14,411
13,325
15,590
16,713
18,292
19,218
19,437
20,124
21,030
22,075
14,500
219
2
14,150
259
2
12,980
344
1
15,260
329
1
16,370
342
1
17,930
361
1
18,870
347
1
19,090
346
1
19,760
363
1
20,690
339
1
21,790
285
1
n.a.
2,105
6,070
3,515
7,150
5,735
8,390
6,090
7,970
6,090
8,310
6,150
8,590
6,275
8,145
6,350
8,035
6,550
7,930
6,630
7,695
6,515
7,600
T
1
1
I
Margin-account debt at brokers (percentage distribution, end of period)
16 Total
17
18
19
20
21
22
By equity class (in percent)6
Under 40
40-49
50-59
60-69
70-79
80 or more
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
14.0
30.0
25.0
14.0
9.0
8.0
37.0
24.0
17.0
10.0
6.0
6.0
21.0
24.0
24.0
14.0
9.0
8.0
14.0
19.0
28.0
19.0
10.0
9.0
14.0
19.0
30.0
16.0
11.0
9.0
13.0
21.0
29.0
16.0
12.0
9.0
21.0
28.0
21.0
14.0
9.0
7.0
23.0
28.0
20.0
13.0
9.0
7.0
100.0
24.(V
27.0
21.0
12.(K
9.0
7.0
100.0
100.0
35.0
24.0
17.0
10.0
7.0
7.0
48.0
22.0
17.0
10.0
7.0
6.0
n.a.
I
1
T
Special miscellaneous-account balances at brokers (end of period)
7
23 Total balances (millions of dollars)
Distribution by equity status (percent)
24 Net credit status
Debt status, equity of
25 60 percent or more
26 Less than 60 percent
21,690
25,870
35,598
44,999
45,465
47,100
50,580
50,267
51,211
54,029
57,490
47.8
58.0
62.0
64.0
62.0
62.0
62.0
62.0
64.0
63.0
63.0
44.4
7.7
31.0
11.0
29.0
9.0
30.0
6.0
32.0
6.0
33.0
5.0
31.0
6.0
31.0
7.0
29.0
7.0
28.0
9.0
29.0
8.0
f
1
n.a.
1
1
t
Margin requirements (percent of market value and effective date)8
27 Margin stocks
28 Convertible bonds
29 Short sales
Mar. 1 , 1968
June S, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
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. Margin credit includes all credit extended to purchase or carry stocks or
related equity instruments and secured at least in part by stock. Credit extended is
end-of-month data for member firms of the New York Stock Exhange.
Besides assigning a current loan value to margin stock generally, Regulations T
and U permit special loan values for convertible bonds and stock acquired through
exercise of subscription rights.
4. A distribution of this total by equity class is shown on lines 17-22.
5. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
6. Each customer's equity in his collateral (market value of collateral less net
debit balance) is expressed as a percentage of current collateral values.
7. 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.
8. 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.
A28
1.37
DomesticNonfinancialStatistics • January 1984
SELECTED FINANCIAL INSTITUTIONS
Selected Assets and Liabilities
Millions of dollars, end of period
1983
1982
Account
1981
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
NOV.P
739,575
745,040
746,514
754,932
762,237
Savings and loan associations
706,045
714,676
722,352
723,616
518,547 482,234 481,470 481,090 475,688 476,248 472,124 473,134 477,919 481,691 480,813 483,854 48* ,464
63,123 84,767 90,662 94,080 96,649 99,226 103,468 101,284 101,754 98,996 99,419 100,714 100,943
82,497 139,044 142,544 147,182 151,279 153,013 152,564 156,857 159,902 164,353 166,282 170,364 172,830
5 Liabilities and net worth
664,167
706,045
714,676
722,352
723,616
6
7
8
9
10
11
Savings capital
Borrowed money
FHLBB
Other
Loans in process
Other
728,487
728,487
728,156
731,275
664,167
2 Mortgages
3 Cash and investment securities'
4 Other
728,156
731,275
739,575
745,040
746,514
754,932
762,237
525,061 566,189 582,918 591,913 597,112 601,171 599,673 603,178 608,683 613,087 615,691 620,233 623,208
88,782 97,979 88,925 86,544 84,884 83,640 82,722 84,328 84,682 84,345 85,926 87,315 89 ,409
62,794 63,861 60,415 58,841 56,859 55,933 54,392 54,234 53,579 52,303 52,179 52,678 51,742
37,667
25,988 34,118 28,510 27,703 28,025 27,707 28,330 30,094 31,103 32,042 33,747 34,637
15,972
17,931
18,773
19,168
19,700
13,462
14,528
17,063
9,934
11,039 12,245
10,453
6,385
14,767
15,548
15,978
17,934
19,741
16,210
18,323
17,931
19,078
17,524
15,720
16,658
15,544
12 Net worth 2
28,395
26,157
26,175
26,371
26,853
27,466
27,438
28,221
28,279
28,530
28,919
29,450
29,879
13 MEMO: Mortgage
loan commitments
outstanding3
15,225
18,054
19,453
22,051
24,885
27,920
30,089
30,630
31,667
32,342
32,410
32,723
34,497
Mutual savings banks
4
175,728
174,197
174,726
176,378
178,814
178,826
180,071
181,975
182,822
183,612
186,041
188,021
99,997
14,753
94,091
16,957
93,944
17,420
93,607
18,211
93,823
17,837
93,311
18,353
93,587
17,893
94,000
17,438
93,998
18,134
93,941
17,929
94,831
17,830
95,181
18,860
9,810
2,288
37,791
5,442
5,649
9,743
2,470
36,161
6,919
7,855
10,248
2,446
36,430
6,275
7,963
11,081
2,440
36,905
6,104
8,031
12,187
2,403
37,827
6,548
8,189
12,364
2,311
38,342
6,039
8,107
13,110
2,260
39,142
5,960
8,118
13,572
2,257
40,206
6,224
8,276
13,931
2,248
40,667
5,322
8,522
14,484
2,247
41,045
5,168
8,799
14,794
2,244
41,889
5,560
8,893
14,774
2,189
41,907
4,940
9,051
22 Liabilities
175,728
174,197
174,726
176,378
178,814
178,826
180,071
181,975
182,822
183,612
186,041
188,021
23
24
25
26
27
28
29
30
155,110
153,003
49,425
103,578
2,108
10,632
9,986
155,196
152,777
46,862
96,369
2,419
8,336
9,235
157,113
154,876
41,850
90,184
2,237
7,722
9,196
159,162
156,915
41,165
87,377
2,247
7,542
9,197
161,489
159,088
41,183
86,272
2,401
7,395
9,342
161,262
158,760
40,379
84,593
2,502
7,631
9,352
162,287
159,840
40,467
83,506
2,447
3,114
9,377
163,990
161,573
40,451
84,705
2,417
7,754
9,575
164,848
162,271
39,983
85,445
2,577
7,5%
9,684
165,087
162,600
39,360
86,446
2,487
7,884
9,932
165,887
162,998
39,768
85,603
2,889
9,475
9,879
166,260
163,782
38,129
90,639
2,478
8,988
12,245
1,293
1,285
1,253
1,295
1,639
1,882
1,860
1,884
1,969
2,046
2,023
2,210
633,569
638,826
644,295
647,149
14 Assets
Loans
Mortgage
Other
Securities
U.S. government5
State and local government
Corporate and other 6
Cash
Other assets
15
16
17
18
19
20
21
Deposits
Regular7
Ordinary savings
Time
Other
Other liabilities
General reserve accounts
MEMO: Mortgage
loan commitments
outstanding8
n a.
Life insurance companies
31 Assets
Securities
33
United States 9
37
Bonds
38
Stocks
39 Mortgages
41 Policy loans
42 Other assets
525,803
588,163
589,490
595,959
602,770
609,298
620,572
628,224
25,209 36,499 35,587 36,946 38,449 39,210 42,523 43,348 44,751 45,700 46,109 47,767
17,877
19,213
19,746 20,706 21,141 22,228 22,817 23,134 24,380
16,731
8,167
16,529
8,524
10,053
10,355
10,504
10,695
8,664
8,368
10,739
10,791
8,225
8,333
7,151
11,764
11,852
12,236
10,736 10,868
10,940
12,019
12,188
12,596
10,631
9,891
11,306
255,769 287,126 290,178 293,427 296,233 300,558 309,254 313,510 316,934 318,584 321,568 320,964
208,099 231,406 233,380 235,376 236,430 238,689 245,833 248,248 252,397 253,977 256,131 256,332
47,670 55,720 56,798 58,051 59,803 61,869 63,421 65,262 64,537 64,607 65,437 64,632
137,747 141,989 142,277 142,683 143,031 143,011 143,758 144,725 145,086 146,400 147,356 148,256
20,264 20,922 21,014 21,175 21,352 21,344 21,629 21,690 21,749 21,903 22,141
40,094
48,706 52,961 53,239 53,383 53,560 53,715 53,804 53,914 53,972 54,063 54,165 54,255
35,815 48,571 42,111 43,355 50,322 51,452 48,889 51,098 51,136 52,330 53,194 53,765
n.a.
Credit unions11
43 Total assets/liabilities and capital
45
State
46 Loans outstanding
47 Federal
48 State
49 Savings
50 Federal (shares)
51 State (shares and deposits)
For notes see bottom of opposite page.
60,611
69,572
69,831
71,412
73,876
74,896
76,851
78,467
79,084
79,595
80,678
81,033
81,845
39,181
21,430
45,483
24,089
45,609
24,222
46,673
24,739
48,350
22,526
48,986
25,910
50,275
26,576
51,430
27,037
51,844
27,240
52,224
27,371
53,033
27,645
53,222
27,811
53,710
28,135
42,333
27,096
15,237
54,152
35,25(
18,902
43,223
27,941
15,282
62,977
41,341
21,636
42,946
27,740
15,206
63,318
41,556
21,762
42,823
27,644
15,179
64,780
42,533
22,247
43,067
27,823
15,244
67,494
44,336
23,158
43,530
28,133
15,397
68,663
45,165
23,498
44,055
28,512
15,543
70,221
46,192
24,029
45,001
29,175
15,826
71,712
47,145
24,567
45,616
29,577
16,039
72,438
47,713
24,725
46,880
30,384
16,496
72,550
47,874
24,676
47,744
30,912
16,832
73,697
48,709
24,988
48,345
31,287
17,058
74,187
49,044
25,143
49,102
31,789
17,313
74,685
49,400
25,285
Federal Finance
1.38
A29
FEDERAL FISCAL A N D FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
Fiscal
year
1981
Fiscal
year
1982
Fiscal
year
1983
1982
HI
1983
1983
H2
HI
Sept.
Oct.
Nov.
U.S. budget
1 Receipts'
2 Outlays1-2
3 Surplus, or deficit ( - )
4 Trust funds
5 Federal funds
599,272
657,204
-57,932
6,817
-64,749
617,766
728,375
-110,609
5,456
-116,065
600,562
795,917
-195,355
23,056
-218,410
322,478
348,678
-26,200
-17,690
-43,889
286,338
390,846
-104,508
-6,576
-97,934
306,331
396,477
-90,146
22,680
-112,822
63,556
61,610
1,946
14,006
-12,060
45,156
70,225
-25,069
-1,471
-23,598
46,200
67,792
-21,592
-3,408
-18,183
Off-budget entities (surplus, or deficit
(-))
6 Federal
Financing Bank outlays
7 Other4
-20,769
-236
-14,142
-3,190
-10,404
-1,953
-7,942
227
-4,923
-2,267
-5,418
-528
-1,270
-1,432
1,347
100
-526
-152
-78,936
-127,940
-207,711
-33,914
-111,699
-96,094
-756
-23,623
-22,270
79,329
134,993
212,425
41,728
119,609
102,538
15,442
11,732
8,946
-1,878
1,485
-11,911
4,858
-9,889
5,176
-408
-7,405
-9,057
1,146
-9,664
3,222
-19,061
4,375
9,525
2,367
21,277
-7,953
18,670
3,520
15,150
29,164
10,975
18,189
37,057
16,557
20,500
10,999
4,099
6,900
19,773
5,033
14,740
100,243
19,442
72,037
37,057
16,557
20,500
27,100
4,841
22,259
5,213
2,896
2,316
U.S. budget plus off-budget, including
Federal Financing Bank
8 Surplus, or deficit ( - )
Source or financing
9 Borrowing from the public
10 Cash and monetary
assets (decrease, or
increase (-)) 5
11 Other6
MEMO;
12 Treasury operating balance (level, end of
period)
13 Federal Reserve Banks
14 Tax and loan accounts
1. Effective Feb. 8, 1982, supplemental medical insurance premiums and
voluntary hospital insurance premiums, previously included in other insurance
receipts, have been reclassified as offsetting receipts in the health function.
2. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was
reclassified from an off-budget agency to an on-budget agency in the Department
of Labor.
3. Half-year figures are calculated as a residual (total surplus/deficit less trust
fund surplus/deficit).
4. Other off-budget includes Postal Service Fund; Rural Electrification and
Telephone Revolving Fund; and Rural Telephone Bank; it also includes petroleum
acquisition and transportation and strategic petroleum reserve effective November 1981.
NOTES TO TABLE 1.37
1. Holdings of stock of the Federal Home Loan Banks are included in "other
assets."
2. Includes net undistributed income, which is accrued by most, but not all,
associations.
3. Excludes figures for loans in process, which are shown as a liability.
4. The NAMSB reports that, effective April 1979, balance sheet data are not
strictly comparable with previous months. Beginning April 1979, data are reported
on a net-of-valuation-reserves basis. Before that date, data were reported on a
gross-of-valuation-reserves basis.
5. Beginning April 1979, includes obligations of U.S. government agencies.
Before that date, this item was included in "Corporate and other."
6. Includes securities of foreign governments and international organizations
and, before April 1979, nonguaranteed issues of U.S. government agencies.
7. Excludes checking, club, and school accounts.
8. Commitments outstanding (including loans in process) of banks in New York
State as reported to the Savings Banks Association of the state of New York.
9. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
5. Includes U.S. Treasury operating cash accounts; special drawing rights; gold
tranche drawing rights; loans to International Monetary Fund; and other cash and
monetary assets.
6. 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." Treasury Bulletin, and the Budget of the United States Government, Fiscal Year 1984.
10. Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
11. As of June 1982, data include only federal or federally insured state credit
unions serving natural persons.
NOTE. Savings and loan associations: Estimates by the FHLBB for all
associations in the United States. Data are based on monthly reports of federally
insured associations and annual reports of other associations. Even when revised,
data for current and preceding year are subject to further revision.
Mutual savings banks: Estimates of National Association of Mutual Savings
Banks for all savings banks in the United States.
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."
Credit unions: Estimates by the National Credit Union Administration for a
group of federal and federally insured state credit unions serving natural persons.
Figures are preliminary and revised annually to incorporate recent benchmark
data.
A30
1.39
DomesticNonfinancialStatistics • January 1984
U.S. BUDGET RECEIPTS A N D OUTLAYS
Millions of dollars
Calendar year
Source or type
Fiscal
year
Fiscal
year
Fiscal
year
1981
1982
1983
1982
1983
HI
H2
HI
1983
Sept.
Oct.
Nov.
RECEIPTS
1
All sources1
599,272
617,766
600,563
322,478
286,338
306,331
63,556
48,102
46,200
2
3
4
5
6
285,917
256,332
41
76,844
47,299
297,744
267,513
39
84,691
54,498
288,938
266,010
36
83,586
60,692
150,565
133,575
34
66,174
49,217
145,676
131,567
5
20,040
5,938
144,550
135,531
30
63,014
54,024
30,961
21,060
1
11,595
1,695
23,227
21,720
0
2,022
515
22,700
22,550
0
1,011
861
73,733
12,596
65,991
16,784
61,780
24,758
37,836
8,028
25,661
11,467
33,522
13,809
10,477
1,430
2,824
2,356
1,827
1,360
182,720
201,498
209,001
108,079
94,278
110,521
17,240
15,707
16,780
156,932
172,744
179,010
88,795
85,063
90,912
15,753
14,266
14,151
12
13
Individual income taxes, net
Withheld
Presidential Election Campaign Fund . . .
Nonwithheld
Refunds
Corporation income taxes
Gross receipts
Refunds
Social insurance taxes and contributions,
net
Payroll employment
taxes and
contributions2
Self-employment 3taxes and
contributions
Unemployment insurance
Other net receipts1-4
6,041
15,763
3,984
7,941
16,600
4,212
6,756
18,799
4,436
7,357
9,809
2,119
177
6,857
2,181
6,427
11,146
2,196
927
176
384
0
1,100
341
103
2,166
360
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes 5
Miscellaneous receipts
40,839
8,083
6,787
13,790
36,311
8,854
7,991
16,161
35,300
8,655
6,053
15,594
17,525
4,310
4,208
7,984
16,556
4,299
3,445
7,891
16,904
4,010
2,883
7,751
3,692
815
552
1,249
3,142
766
488
1,357
3,259
904
453
1,637
7
8
9
10
11
.-
OUTLAYS
18
AH types1
657,204
728,424
795,917
348,683
390,847
396,477
61,610
70,225
67,792
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology . . .
Energy
Natural resources and environment
Agriculture
159,765
11,130
6,359
10,277
13,525
5,572
187,418
9,982
7,070
4,674
12,934
14,875
210,461
8,927
7,777
4,035
12,676
22,173
93,154
5,183
3,370
2,946
5,636
7,087
100,419
4,406
3,903
2,059
6,940
13,260
105,072
4,705
3,486
2,073
5,892
10,154
18,086
822
685
-97
1,344
662
17,416
1,083
880
253
1,251
1,718
17,947
318
777
342
974
766
3,946
23,381
9,394
3,865
20,560
7,165
4,721
21,231
7,302
1,408
9,915
3,055
2,244
10,686
4,186
2,164
9,918
3,124
190
2,148
671
1,848
3,051
1,015
-288
2,118
686
31,402
65,982
225,101
26,300
74,017
248,343
25,726
81,157
280,244
12,607
37,219
112,782
12,187
39,073
133,779
12,801
41,206
143,001
2,046
5,917
22,853
2,165
7,928
20,922
2,205
7,064
22,810
22,988
4,696
4,614
6,856
68,726
-16,509
23,955
4,671
4,726
6,393
84,697
-13,270
24,845
5,014
4,991
6,287
103,916
-35,566
10,865
2,334
2,400
3,325
41,883
-6,490
13,241
11,334
2,522
2,434
3,124
50,383
-16,912
2,012
398
282
31
6,390
-2,828
1,940
442
143
1,644
7,767
-1,242
2,051
396
535
337
9,464
-710
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, social
services
1
29 Health
30 Income security
25
26
27
28
31
32
33
34
35
36
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Net interest®
Undistributed offsetting receipts7
1. Effective Feb. 8, 1982, supplemental medical insurance premiums and
voluntary hospital insurance premiums, previously included in other insurance
receipts, have been reclassified as offsetting receipts in the health function.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Federal employee retirement contributions and civil service retirement and
disability fund.
2,373
2,322
3,152
44,948
-8,333
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous
receipts.
6. Net interest function includes interest received by trust funds.
7. 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 1984.
Federal Finance
1.40
A31
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1983
1982
1981
Item
Sept. 30
1 Federal debt outstanding
2 Public debt securities
3 Held by public
4 Held by agencies
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
1,003.9
1,034.7
1,066.4
1,084.7
1,147.0
1,201.9
1,249.3
1,324.3
1,381.9
997.9
789.8
208.1
1,028.7
825.5
203.2
1,061.3
858.9
202.4
1,079.6
867.9
211.7
1,142.0
925.6
216.4
1,197.1
987.7
209.4
1,244.5
1,043.3
201.2
1,319.6
1,090.3
229.3
1,377.2
1,138.2
239.0
6.1
4.6
1.5
6.0
4.6
1.4
5.1
3.9
1.2
5.0
3.9
1.2
5.0
3.7
1.2
4.8
3.7
1.2
4.8
3.7
1.1
4.7
3.6
1.1
4.7
3.6
1.1
5 Agency securities
6 Held by public
7 Held by agencies
998.8
1,029.7
1,062.2
1,080.5
1,142.9
1,197.9
1,245.3
1,320.4
1,378.0
9 Public debt securities
10 Other debt1
997.2
1.6
1,028.1
1.6
1,060.7
1.5
1,079.0
1.5
1,141.4
1.5
1,196.5
1.4
1,243.9
1.4
1,319.0
1.4
1,376.6
1.3
11 MEMO: Statutory debt limit
999.8
1,079.8
1,079.8
1,143.1
1,143.1
1,290.2
1,290.2
1,389.0
1,389.0
8 Debt subject to statutory limit
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 Bulletin (U.S. Treasury Department),
Types and Ownership
Billions of dollars, end of period
1983
Type and holder
1979
1980
1981
1982
Sept.
Aug.
1 Total gross public debt
2
3
4
5
6
7
s
9
10
11
12
13
14
By type
Interest-bearing debt
Marketable
Bills
Notes
Bonds
Nonmarketable1
State and local government series
Foreign issues3
Government
Public
Savings bonds and notes 4
Government account series
930.2
1,028.7
1,197.1
1,348.4
1,377.2
1,384.6
1.389.2
1,410.7
844.0
530.7
172.6
283.4
74.7
313.2
2.2
24.6
28.8
23.6
5.3
79.9
177.5
928.9
623.2
216.1
321.6
85.4
305.7
1,027.3
720.3
245.0
375.3
99.9
307.0
1,195.5
881.5
311.8
465.0
104.6
314.0
1,346.9
1,010.4
340.4
544.2
125.8
336.5
1,375.8
1,024.0
340.7
557.5
125.7
351.8
1,383.3
1,035.3
339.0
566.2
129.2
347.9
1,387.9
1.044.3
335.3
575.3
133.8
343.5
1,400.9
1,050.9
343.8
573.4
133.7
350.0
23.8
24.0
17.6
6.4
72.5
185.1
23.0
19.0
14.9
4.1
68.1
196.7
25.7
14.7
13.0
1.7
68.0
205.4
33.9
11.1
11.1
.0
70.0
221.4
35.1
11.5
11.5
.0
70.3
234.7
35.3
11.5
11.5
.0
70.6
230.3
35.7
10.5
10.5
.0
70.9
226.2
36.7
10.4
10.4
.0
70.7
231.9
1.5
1.5
1.3
1.3
9.8
1.2
1.3
1.4
1.6
16
17
18
19
20
21
22
23
187.1
117.5
540.5
96.4
4.7
16.7
22.9
69.9
192.5
121.3
616.4
116.0
5.4
20.1
25.7
78.8
203.3
131.0
694.5
109.4
5.2
19.1
37.8
85.6
209.4
139.3
848.4
131.4
n.a.
38.7
n.a.
113.4
24
25
26
27
Individuals
Savings bonds
Other securities
Foreign and international6
Other miscellaneous investors7
79.9
36.2
124.4
90.1
72.5
56.7
127.7
106.9
68.0
75.6
141.4
152.3
68.3
48.2
149.4
233.2
1. Includes (not shown separately): Securities issued to the Rural Electrification Administration, depository bonds, retirement plan bonds, and individual
retirement bonds.
2. These nonmarketable bonds, also known as Investment Series B Bonds,
may be exchanged (or converted) at the owner's option for l'/S> percent, 5-year
marketable Treasury notes. Convertible bonds that have been so exchanged are
removed from this category and recorded in the notes category (line 5).
3. Nonmarketable dollar-denominated and foreign currency-denominated
series held by foreigners.
4. Held almost entirely by U.S. government agencies and trust funds.
Dec.
845.1
By holder5
U.S. government agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
Mutual savings banks
Insurance companies
Other companies
State and local governments
15 Non-interest-bearing debt
Nov.
Oct.
n a.
n.a.
n.a.
n.a.
n.a.
5. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.
6. Consists of investments of foreign balances and international accounts in the
United States.
7. Includes savings and loan associations, nonprofit institutions, corporate
pension trust funds, dealers and brokers, certain government deposit accounts,
and government sponsored agencies.
NOTE. Gross public debt excludes guaranteed agency securities.
Data by type of security from Monthly Statement of the Public Debt of the
United States (U.S. Treasury Department); data by holder from Treasury
Bulletin.
A32
1.42
DomesticNonfinancialStatistics • January 1984
U.S. GOVERNMENT SECURITIES DEALERS
Par value; averages of daily figures, in millions of dollars
Transactions
1983
Item
1980
1981
1983, week ending Wednesday
1982
Aug.
Sept.
Oct.
Sept. 21 Sept. 28
Oct. 5
Oct. 19
Oct. 12
Oct. 26
1
Immediate delivery1
U.S. government securities
18,331
24,728
32,271
45,684
48,100
46,157
49,117
56,318
50,857
48,532
44,621
44,745
2
3
4
5
6
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
11,413
421
3,330
1,464
1,704
14,768
621
4,360
2,451
2,528
18,398
810
6,272
3,557
3,234
23,908
669
10,188
4,819
6,100
24,359
672
10,361
7,407
5,302
24,276
757
10,175
5,830
5,119
25,099
627
13,581
5,244
4,566
26,161
494
12,635
9,066
7,961
28,428
816
10,027
6,355
5,231
26,458
821
9,352
5,946
5,956
23,384
749
9,753
5,556
5,179
21,549
715
12,102
5,842
4,537
/
8
9
10
11
12
13
14
15
16
17
18
By type of customer
U.S. government securities
dealers
U.S. government securities
brokers
All others2
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper3
Futures transactions
Treasury bills
Treasury coupons
Federal agency securities
Forward transactions4
U.S. government securities
Federal agency securities
1,484
1,640
1,769
2,179
2,426
2,468
2,127
2,686
2,766
2,589
2,248
2,637
7,610
9,237
3,258
2,472
11,750
11,337
3,306
4,477
1,807
6,128
15,659
15,344
4,142
5,001
2,502
7,595
23,951
19,553
5,275
4,425
2,658
7,128
24,477
21,197
6,233
4,765
3,078
7,677
23,396
20,292
6,851
4,206
2,657
8,626
25,401
21,589
7,149
5,592
3,610
7,661
30,366
23,266
6,922
4,855
2,783
6,742
26,261
21,831
5,939
3,814
2,745
9,594
25,028
20,916
6,749
4,027
2,855
9,251
22,856
19,517
8,418
4,537
3,076
7,945
21,419
20,689
6,584
4,120
2,066
8,391
3,523
1,330
234
5,031
1,490
259
7,458
3,144
276
6,008
2,549
200
7,978
3,173
208
7,137
3,058
289
6,833
2,880
183
6,811
2,507
210
8,370
3,275
228
10,927
3,859
227
6,165
3,228
211
365
1,370
835
982
1,792
2,118
2,113
1,928
1,108
1,798
2,890
2,609
3,219
2,112
274
1,427
789
2,301
1,128
1,983
2,069
1,519
n a.
from the date of the transaction for government securities (Treasury bills, notes,
and bonds) or after 30 days for mortgage-backed agency issues.
NOTE. Averages for transactions are based on number of trading days in the
period.
Transactions are market purchases and sales of U.S. government securities
dealers reporting to the Federal Reserve Bank of New York. 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.
1. Before 1981, data for immediate transactions include forward transactions.
2. Includes, among others, all other dealers and brokers in commodities and
securities, nondealer departments of commercial banks, foreign banking agencies,
and the Federal Reserve System.
3. 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.
4. Forward transactions are agreements arranged in the over-the-counter
market in which securities are purchased (sold) for delivery after 5 business days
1.43
U.S. GOVERNMENT SECURITIES DEALERS
Positions and Financing
Averages of daily figures, in millions of dollars
1983
Item
1980
1981
1983, week ending Wednesday
1982
Aug.
Sept.
Oct.
Sept. 7
Sept. 14
Sept. 21
Sept. 28
Oct. 5
Positions
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Net immediate1
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
A ,306
4,103
-1,062
434
166
665
797
3,115
n.a.
9,033
6,485
-1,526
1,488
292
2,294
2,277
3,435
1,746
2,658
9,328
4,837
-199
2,932
-341
2,001
3,712
5,531
2,832
3,317
3,252
877
-198
2,216
147
210
7,995
4,688
2,917
2,755
7,500
1,779
-558
4,496
1,162
621
9,170
6,095
3,743
3,2%
5,000
2,148
-465
3,021
132
164
10,152
6,802
4,062
3,385
4,372
139
-621
3,129
1,097
628
8,559
5,867
3,397
2,818
5,884
1,879
-494
2,466
1,059
974
9,557
6,125
4,320
3,417
7,392
1,389
-527
5,391
540
600
9,785
6,312
3,898
3,122
11,454
3,345
-591
6,435
1,889
376
8,655
6,039
3,438
3,465
9,179
2,848
-397
5,024
1,151
552
9,216
6,303
3,425
3,908
-8,934
-2,733
522
-2,508
-2,361
-224
1,493
-1,715
428
-6,932
-1,530
188
-8,352
-711
308
-3,606
-895
434
-5,539
-1,612
294
-6,708
-1,742
123
-9,513
-1,668
-25
-10,922
-1,612
144
-603
-451
-788
-1,190
-4,348
-4,049
-1,456
-5,205
-1,756
-6,219
-1,724
-4,991
-2,412
-5,074
-1,156
-6,305
-643
-4,469
-1,452
-5,373
Financing2
Reverse repurchase agreements3
Overnight and continuing
Term agreements
Repurchase agreements4
18 Overnight and continuing
19 Term agreements
16
17
For notes see opposite page.
i
r
n.a.
i
t
14,568
32,048
26,754
48,247
32,232
51,018
30,255
53,158
33,623
53,194
34,483
50,% 1
31,720
53,183
26,506
52,931
28,311
55,558
31,848
51,443
35,919
29,449
49,695
43,410
58,772
41,110
60,603
44,998
63,269
47,319
64,824
41,138
63,467
43,514
56,302
44,861
57,817
50,478
61,406
47,263
Federal Finance
1.44
FEDERAL A N D FEDERALLY SPONSORED CREDIT AGENCIES
A33
Debt Outstanding
Millions of dollars, end of period
1983
Agency
1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department'
4 Export-Import Bank2 3
5 Federal Housing Administration4
6 Government National Mortgage
Association
participation certificates5
7 Postal Service6
8 Tennessee Valley Authority
9 United States Railway Association6
10 Federally sponsored agencies7
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
1980
1982
1981
June
July
Aug.
Sept.
Oct.
Nov.
188,665
221,946
237,085
235,041
236,037
236,931
236,610
239,121
240,177
28,606
610
11,250
477
31,806
484
13,339
413
33,055
354
14,218
288
33,353
298
14,563
228
33,436
284
14,563
220
33,420
274
14,564
213
33,744
264
14,740
206
33,735
258
14,740
203
33,813
253
14,740
197
2,817
1,770
11,190
492
2,715
1,538
13,115
202
2,165
1,471
14,365
194
2,165
1,404
14,570
125
2,165
1,404
14,675
125
2,165
1,404
14,675
125
2,165
1,404
14,840
125
2,165
1,404
14,840
125
2,165
1,404
14,945
109
160,059
37,268
4,686
55,182
62,923
(8)
190,140
54,131
5,480
58,749
71,359
421
204,030
55,967
4,524
70,052
71,896
1,591
201,688
48,871
6,500
71,303
72,652
2,362
202,601
49,065
6,146
71,612
73,306
2,472
203,511
49,081
5,875
72,163
73,744
2,648
202,866
49,283
6,134
71,258
73,046
3,145
205,386
49,956
6,950
71,965
73,465
3,050
206,364
49,285
7,024
73,531
73,474
3,050
87,460
110,698
126,424
131,987
133,367
134,505
136,081
134,799
135,361
10,654
1,520
2,720
9,465
492
12,741
1,288
5,400
11,390
202
14,177
1,221
5,000
12,640
194
14,493
1,154
5,000
12,845
125
14,493
1,154
5,000
12,950
125
14,493
1,154
5,000
12,950
125
14,676
1,154
5,000
13,115
125
14,676
1,154
5,000
13,175
125
14,676
1,154
5,000
13,220
109
39,431
9,196
11,262
48,821
13,516
12,740
53,261
17,157
22,774
54,946
18,378
25,046
55,776
18,497
25,372
56,386
18,638
25,759
55,691
18,936
27,384
55,916
19,093
25,660
55,916
19,216
26,070
MEMO:
16 Federal Financing Bank debt
17
18
19
20
21
Lending to federal and federally sponsored
agencies
Export-Import Bank3
Postal Service6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association6
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.
NOTES TO TABLE 1.43
1. 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. Securities owned, and hence
dealer positions, do not include securities to resell (reverse RPs). Before 1981,
data for immediate positions include forward positions.
2. Figures cover financing involving U.S. government and federal agency
securities, negotiable CDs, bankers acceptances, and commercial paper.
7. Includes outstanding noncontingent liabilities: Notes, bonds, and debentures.
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.
3. 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.
4. Includes both repurchase agreements undertaken to finance positions and
"matched book" repurchase agreements.
NOTE. 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 shown net and are
on a commitment basis. Data for financing are based on Wednesday figures, in
terms of actual money borrowed or lent.
A34
1.45
DomesticNonfinancialStatistics • January 1984
NEW SECURITY ISSUES of State and Local Governments
Millions of dollars
1983
Type of issue or issuer,
or use
1 All issues, new and refunding
1980
1
1981
1982
Mar.
Apr.
May
July'
June'
Aug.'
Sept.'
Oct.
48,367
47,732
78,950
8,762'
u,ooy
9,572
7,542
4,344
6,115
6,044
6,377
14,100
38
34,267
57
12,394
34
35,338
55
21,088
225
57,862
461
2,255'
3
6,507r
5
3,461'
2
7,542'
9
3,570
6
6,002
14
1,549
7
5,993
16
856
7
3,488
26
1,586
9
4,529
29
1,238
14
4,806
35
1,870
15
4,507
39
Type of issuer
6 State
7 Special district and statutory authority
8 Municipalities, counties, townships, school districts
5,304
26,972
16,090
5,288
27,499
14,945
8,406
45,000
25,544
724
5,444
2,594
1,745
5,801'
3,457
830
4,470
4,272
277
4,253
3,012
484
2,997
863
672
3,336
2,107
452
4,132
1,460
856
4,259
1,262
9 Issues for new capital, total
46,736
46,530
74,613
7,542
9,054
6,978
6,036
3,858
4,549
5,421
4,956
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
4,572
2,621
8,149
19,958
3,974
7,462
4,547
3,447
10,037
12,729
7,651
8,119
6,444
6,256
14,254
26,605
8,256
12,797
831
816
1,732
2,794
396
973
681
560
2,592
3,139
482
1,600
827
419
1,513
2,062
705
1,452
881
233
938
2,117
664
1,203
535
274
267
1,915
376
491
713
259
279
2,131
222
945
525
194
1,236
2,304
451
711
433
250
589
2,469
281
934
2
3
4
5
10
11
12
13
14
15
Type of issue
General obligation
U.S. government loans2
Revenue
U.S. government loans2
1. Par amounts of long-term issues based on date of sale.
2. Consists of tax-exempt issues guaranteed by the Farmers Home Administration.
1.46
SOURCE. Public Securities Association.
NEW SECURITY ISSUES of Corporations
Millions of dollars
Type of issue or issuer,
or use
1983
1980
1981
1982
Mar.
1 2
Apr.
May
June
July
Aug.
Sept.
Oct.
1 All issues -
73,694
70,441
84,198
11,728
10,468
11,489
8,165
6,474
5,941
6,568
6,592
2 Bonds
53,206
45,092
53,636
5,317
6,015
7,017
2,244
2,550
2,547
2,865
3,055
Type of offering
3 Public
4 Private placement
41,587
11,619
38,103
6,989
43,838
9,798
5,317
n.a.
6,015
n.a.
7,017
n.a.
2,244
n.a.
2,550
n.a.
2,547
n.a.
2,865
n.a.
3,055
n.a.
15,409
6,693
3,329
9,557
6,683
11,534
12,325
5,229
2,052
8,963
4,280
12,243
13,123
5,681
1,474
12,155
2,265
18,938
962
511
0
950
650
2,244
1,449
1,109
175
755
725
1,802
2,158
1,055
150
1,115
505
2,034
706
425
115
363
250
385
60
228
148
322
1,100
692
200
458
0
355
0
1,534
282
353
0
590
100
1,540
367
114
0
510
50
2,014
11 Stocks3
20,489
25,349
30,562
6,411
4,453
4,472
5,921
3,924
3,394
3,703
3,537
Type
12 Preferred
13 Common
3,631
16,858
1,797
23,552
5,113
25,449
893
5,518
440
4,013
492
3,980
665
5,256
290
3,634
247
3,147
644
3,059
300
3,237
4,839
5,245
549
6,230
567
3,059
5,074
7,557
779
5,577
1,778
4,584
5,649
7,770
709
7,517
2,227
6,690
1,654
1,225
91
674
1,133
1,634
1,424
1,494
113
639
37
746
1,545
922
221
264
8
1,512
2,449
1,358
109
550
138
1,317
1,015
1,415
337
72
20
1,065
1,309
743
145
263
236
698
962
997
165
200
0
1,379
751
868
305
581
36
996
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. Data for 1983 include only public offerings.
3. Beginning in August 1981, gross stock offerings include new equity volume
from swaps of debt for equity.
SOURCE. Securities and Exchange Commission and the Board of Governors of
the Federal Reserve System.
Corporate Finance
1.47
OPEN-END INVESTMENT COMPANIES
A35
Net Sales and Asset Position
Millions of dollars
1983
Item
1981
1982
Apr.
May
July
June
Aug.
Sept.
Oct.
Nov.
INVESTMENT COMPANIES'
1 Sales of own shares2
2 Redemptions of own shares3
3 Net sales
20,596
15,866
4,730
45,675
30,078
15,597
8,418
6,482
1,936
7,577
4,486
3,091
8,107
5,416
2,691
6,944
4,500
2,444
6,032
4,885
1,147
5,915
4,412
1,503
6,532
4,264
2,268
6,335
3,912
2,423
4 Assets4
5
Cash position5
6
Other
55,207
5,277
49,930
76,841
6,040
70,801
98,669
8,496
90,173
101,423
8,771
92,652
106,449
9,110
97,339
104,279
8,815
95,464
104,494
8,045
93,449
109,455
8,868
100,587
107,314
8,256
99,058
113,076
9,395
103,681
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 open-end investment companies registered with the
Securities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.
CORPORATE PROFITS A N D THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1981
Account
2
3
4
5
6
Corporate profits with inventory valuation and
capital consumption adjustment
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
7
8
Inventory valuation
Capital consumption adjustment
1
1980
1982
1983
1982
Q4
QL
Q2
Q3
Q4
QL
Q2
Q3
175.4
234.6
84.8
149.8
58.6
91.2
192.3
227.0
82.8
144.1
64.7
79.4
164.8
174.2
59.1
115.1
68.7
46.4
192.0
217.2
75.6
141.7
67.3
74.4
162.0
173.2
60.3
112.9
67.7
45.2
166.8
178.8
61.4
117.4
67.8
49.5
168.5
177.3
60.8
116.5
68.8
47.7
161.9
167.5
54.0
113.5
70.4
43.1
181.8
169.7
61.5
108.2
71.4
36.7
218.2
203.3
76.0
127.2
72.0
55.2
248.4
229.1
84.9
144.1
73.7
70.4
-42.9
-16.3
-23.6
-11.0
-8.3
-1.1
-15.7
-9.5
-5.5
-5.6
-8.5
-3.5
-9.0
-10.3
4.7
-1.7
13.9
-10.6
25.6
-18.3
37.6
SOURCE. Survey of Current Business (Department of Commerce).
1981
.1
A36
1.49
DomesticNonfinancialStatistics • January 1984
NONFINANCIAL CORPORATIONS
Current Assets and Liabilities
Billions of dollars, except for ratio
1983
1982
Account
1977
1978
1979
1980
1981
Q2
Q3
Q4
Q1
Q2
1 Current assets
912.7
1,043.7
1,214.8
1,327.0
1,419.3
1,417.2
1,441.8
1,425.4
1,436.5
1,464.2
2
3
4
5
6
97.2
18.2
330.3
376.9
90.1
105.5
17.2
388.0
431.8
101.1
118.0
16.7
459.0
505.1
116.0
126.9
18.7
506.8
542.8
131.8
131.8
17.4
530.3
585.1
154.6
124.1
16.5
531.2
587.6
157.9
126.9
18.9
534.2
596.5
165.3
144.0
22.4
511.0
575.2
172.6
139.7
25.8
517.9
573.2
179.9
145.7
27.5
534.3
570.5
186.2
7 Current liabilities
557.1
669.5
807.3
889.3
976.3
988.7
1,007.6
977.8
986.3
997.7
8 Notes and accounts payable
9 Other
317.6
239.6
383.0
286.5
460.8
346.5
513.6
375.7
558.8
417.5
554.9
433.8
562.7
444.9
552.8
425.0
543.2
443.1
551.6
446.1
10 Net working capital
355.5
374.3
407.5
437.8
442.9
428.5
434.2
447.6
450.2
466.5
11 MEMO; Current ratio1
1.638
1.559
1.505
1.492
1.454
1.433
1.431
1.458
1.456
1.468
Cash
U.S. government securities
Notes and accounts receivable
Inventories
Other
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
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.
20551.
SOURCE. Federal Trade Commission and Bureau of the Census.
1.50
TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1982
Industry1
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 Trade and services
11 Communication and other2
1982
1983?
1984
Q3
Q4
QL
Q2
L
Q3
Q4 1
QL>
Q2>
316.43
303.20
333.32
315.79
303.18
293.03
293.46
304.70
321.60
323.07
325.42
56.44
63.23
51.45
59.74
59.87
66.11
57.14
62.32
50.51
59.72
50.74
59.12
48.48
60.31
53.06
58.06
53.52
61.45
57.18
61.81
58.09
62.86
15.45
12.00
13.48
14.63
13.41
12.03
10.91
11.93
13.14
12.25
13.68
4.38
3.93
3.64
3.93
3.78
3.54
4.50
2.59
3.86
3.94
4.11
3.24
4.35
4.76
3.22
3.35
4.09
3.60
3.64
4.10
3.14
4.07
3.57
3.36
4.68
3.34
4.07
4.38
2.44
3.96
4.68
2.70
4.03
33.40
8.55
86.95
40.46
35.29
7.33
88.02
38.11
35.36
8.81
96.35
42.38
34.98
8.40
87.31
39.73
35.15
7.85
84.36
39.84
33.97
7.64
82.38
36.11
34.86
6.62
85.85
35.54
35.84
6.38
91.06
37.38
36.50
8.67
92.79
43.42
32.80
9.02
96.98
42.25
32.76
9.54
95.03
42.03
1. Anticipated by business.
2. "Other" consists of construction; social services and membership organizations; and forestry, fisheries, and agricultural services.
1983
1984'
SOURCE. Survey of Current Business (Department of Commerce).
Corporate Finance
1.51
DOMESTIC FINANCE COMPANIES
A37
Assets and Liabilities
Billions of dollars, end of period
1982
Account
1977
1978
1979
1980
1983
1981
Q3
Q4
Q2
QI
Q3
ASSETS
Accounts receivable, gross
1 Consumer
2 Business
3 Total
4 LESS: Reserves for unearned income and losses....
5 Accounts receivable, net
6 Cash and bank deposits
7 Securities
8 All other
9 Total assets
44.0
55.2
99.2
12.7
86.5
2.6
.9
14.3
52.6
63.3
116.0
15.6
100.4
3.5 1
1.3 y
17.3 J
65.7
70.3
136.0
20.0
116.0
73.6
72.3
145.9
23.3
122.6
85.5
80.6
166.1
28.9
137.2
88.3
82.2
170.5
30.4
140.1
89.5
81.0
170.4
30.5
139.8
89.9
82.2
172.1
29.7
142.4
91.3
84.9
176.2
30.4
145.8
92.3
86.8
179.0
30.1
148.9
24.91
27.5
34.2
39.1
39.7
42.8
44.3
45.0
104.3
122.4
140.9
150.1
171.4
179.2
179.5
185.2
190.2
193.9
5.9
29.6
6.5
34.5
8.5
43.3
13.2
43.4
15.4
51.2
16.8
46.7
18.6
45.8
16.6
45.2
16.3
49.0
17.0
49.7
6.2
36.0
11.5
8.1
43.6
12.6
8.2
46.7
14.2
7.5
52.4
14.3
9.6
54.8
17.8
9.9
60.9
20.5
8.7
63.5
18.7
9.8
64.7
22.8
9.6
64.5
24.0
8.7
66.2
24.4
LIABILITIES
10 Bank loans
11 Commercial paper
Debt
12 Short-term, n.e.c
13 Long-term, n.e.c
14 Other
15 Capital, surplus, and undivided profits
16 Total liabilities and capital
15.1
17.2
19.9
19.4
22.8
24.5
24.2
26.0
26.7
27.9
104.3
122.4
140.9
150.1
171.4
179.2
179.5
185.2
190.2
193.9
1. Beginning Q1 1979, asset items on lines 6, 7, and 8 are combined.
NOTE. Components may not add to totals due to rounding.
1.52
DOMESTIC FINANCE COMPANIES
Business Credit
Millions of dollars, seasonally adjusted except as noted
Type
Changes in accounts
receivable
Extensions
Repayments
1983
1983
1983
Accounts
receivable
outstanding
Oct. 31,
1983'
Aug.
Sept.
Oct.
Aug.
Sept.
Oct.
Aug.
Sept.
Oct.
1 Total
89,240
1,817
2,909
986
29,882
27,209
25,841
28,065
24,300
24,855
2
3
4
5
19,523
12,562
28,177
1,052
1,039
-320
1,443
397
256
680
310
-406
2,184
8,285
1,385
2,620
7,461
1,149
1,925
7,124
1,049
1,132
7,246
1,705
1,177
7,064
893
1,245
6,814
1,455
9,927
19,051
279
-233
255
558
149
253
15,794
2,234
13,782
2,197
13,822
1,921
15,515
2,467
13,527
1,639
13,673
1,668
Retail automotive (commercial vehicles)
Wholesale automotive
Retail paper on business, industrial, and farm equipment
Loans on commercial accounts receivable and factored commercial accounts receivable
6 All other business credit
1. Not seasonally adjusted.
A38
1.53
DomesticNonfinancialStatistics • January 1984
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1983
Item
1980
1981
1982
May
June
July
Aug.
Sept.
Oct.
Nov.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
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 annum)
5
7 FHLBB series
8 HUD series4
94.6
69.8
76.6
27.6
2.95
14.47
92.1
67.8
77.5
2.09
12.25
90.4
65.3
74.8
27.7
2.67
14.16
12.65
13.95
14.74
16.52
13.44
12.55
16.31
15.29
83.4
59.2
73.2
28.2
97.3
72.3
76.5
2.54
94.4
67.3
73.3
25.7
1.96
12.21
93.0
69.2
76.9
27.3
2.43
11.90
12.02
12.01
12.08
15.12
15.79
12.67
13.09
12.36
13.37
12.50
14.00
12.38
13.90
12.54
13.60
15.31
14.68
12.41
11.72
12.96
12.09
14.23
12.54
13.78
13.01
13.55
12.73
75,057
36,894
38,163
75,174
36,670
38,505
75,665
36,455
39,210
76,714
36,349
40,365
26.8
2.44
28.1
100.7
76.5
78.5
27.2
2.45
SECONDARY MARKETS
Yield (percent per annum)
9 FHA mortgages (HUD series)5.
10 GNMA securities6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12 FHA/VA-insured
13 Conventional
55,104
37,365
17,725
58,675
39.341
19,334
66,031
39,718
26,312
74,116
37,669
36,446
74,669
37,376
37,293
74,630
37,092
37,583
Mortgage transactions (during period)
14 Purchases
15 Sales
8,099
0
6,112
2
15,116
2
1,579
204
1,333
83
1,358
786
1,213
121'
1,203
464
1,244
257
1,348
0
Mortgage commitments1
16 Contracted (during period)
17 Outstanding (end of period)
8,083
3,278
9,331
3,717
22,105
7,606
1,534
5,726
2,506
5,887
1,198
5,099
1,282
5,165
2,739
6,684
1,882
7,182
997
6,493
Mortgage holdings (end of period)8
18 Total
19 FHA/VA
20 Conventional
4,362
2,116
2,246
5,245
2,236
3,010
5,153
1,921
3.224
6,026
984
5,042
6,235
982
5,253
6,182
971
5,211
6,149
964
5,185
6,857
961
5.8%
6,963
947
6,016
Mortgage transactions (during period)
21 Purchases
22 Sales
3,723
2,527
3,789
3,531
23,671
24,164
2,439
1,408
1,494
1,244
1,523
1,491
1,621
1,588
2,263
1,556
2,886
2,750
Mortgage commitments9
23 Contracted (during period)
24 Outstanding (end of period)
3,859
447
6,974
3,518
28,187
7,549
2,334
6,889
2,358
7,719
4,671
10,794
6,367
15,519
3,283
16,512
2,598
16,198
FEDERAL HOME LOAN MORTGAGE CORPORATION
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, rounded to the nearest 5 basis points; 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. Any gaps in data are due to periods of adjustment to changes in
maximum permissible 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 unweighted averages of Monday
quotations for the month.
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 FNMA-GNMA 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 FNMA exclude
swap activity.
Real Estate Debt
1.54
A39
MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
1983
1982
Type of holder, and type of property
1
7
3 Multifamily
4 Commercial
5
1980
1982
1981
Q3
Q4
Ql
Q2
Q3'
1,471,786
986,979
137,134
255,655
92,018
1,583,264
1,065,294
136,354
279,889
101,727
1,655,172
1,114,193
140,285
293,884
106,810
1,632,161
1,096,173
138,385
291,197
106,406
1,655,172
1,114,193
140,285
293,884
106,810
1,682,598
1,133,261
142,154
300,246
106,937
1,724,122
1,161,807
145,387
309,224
107,704
1,774,150
1,198,362
147,682
319,289
108,817
7
8
9
10
11
Major financial institutions
Commercial banks1
1- to 4-family
Multifamily
Commercial
Farm
997,168
263,030
160,326
12,924
81,081
8,699
1,040,827
284,536
170,013
15,132
91,026
8,365
1,023,700
301,742
177,122
15,841
100,269
8,510
1,027,027
298,342
175,126
15,666
99,050
8,500
1,023,700
301,742
177,122
15,841
100,269
8,510
1,029,770
305,672
179,430
16,147
101,575
8,520
1,049,758
312,663
183,533
16,634
103,898
8,598
1,080,316
324,063
190,225
17,240
107,686
8,912
1?
13
14
15
16
Mutual savings banks
1- to 4-family
Multifamily
Commercial
Farm
99,865
67,489
16,058
16,278
40
99,997
68,187
15,960
15,810
40
97,805
66,777
15,305
15,694
29
94,382
63,849
15,026
15,479
28
97,805
66,777
15,305
15,694
29
105,379
72,912
15,862
16,577
28
119,236
83,870
17,066
18,262
38
128,057
90,911
17,748
19,361
37
17
18
19
20
Savings and loan associations
1- to 4-family
Multifamily
Commercial
503,192
419,763
38,142
45,287
518,547
433,142
37,699
47,706
482,234
397,795
39,302
45,137
493,899
408,701
38,771
46,427
482,234
397,795
39,302
45,137
475,688
389,112
39,721
46,855
473,134
383,806
40,453
48,875
481,346
389,121
41,636
50,589
71
77
73
74
25
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
131,081
17,943
19,514
80,666
12,958
137,747
17,201
19,283
88,163
13,100
141,919
16,743
18,847
93,501
12,828
140,404
16,865
18,967
91,640
12,932
141,919
16,743
18,847
93,501
12,828
143,031
16,388
18,825
95,158
12,660
144,725
15,860
18,778
97,416
12,671
146,850
15,648
18,892
99,542
12,768
114,300
4,642
704
3,938
126,094
4,765
693
4,072
138,185
4,227
676
3,551
134,409
4,110
682
3,428
138,185
4,227
676
3,551
140,028
3,753
665
3,088
142,094
3,643
651
2,992
142,291
3,475
639
2,836
3,492
916
610
411
1,555
2,235
914
473
506
342
1,786
783
218
377
408
947
302
46
164
435
1,786
783
218
377
408
2,077
707
380
337
653
1,605
381
555
248
421
600
211
32
113
244
5,640
2,051
3,589
5,999
2,289
3,710
5,228
1,980
3,248
5,362
2,130
3,232
5,228
1,980
3,248
5,138
1,867
3,271
5,084
1,911
3,173
5,117
1,947
3,170
76 Federal and related agencies
77 Government National Mortgage Association
78
1- to 4-family
29
Multifamily
30
31
37
33
34
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
35
Federal Housing and Veterans
Administration
36
37
Multifamily
38
39
40
Federal National Mortgage Association
1- to 4-family
Multifamily
57,327
51,775
5,552
61,412
55,986
5,426
71,814
66,500
5,314
68,841
63,495
5,346
71,814
66,500
5,314
73,666
68,370
5,296
74,669
69,396
5,273
75,174
69,938
5,236
41
47
43
Federal Land Banks
1- to 4-family
Farm
38,131
2,099
36,032
46,446
2,788
43,658
50,350
3,068
47,282
49,983
3,029
46,954
50,350
3,068
47,282
50,544
3,059
47,485
50,858
3,030
47,828
51,069
3,008
48,061
44
4'i
46
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
5,068
3,873
1,195
5,237
5,181
56
4,780
4,733
47
5,166
5,116
50
4,780
4,733
47
4,850
4,795
55
6,235
6,119
116
6,856
6,799
57
142,258
93,874
91,602
2,272
163,000
105,790
103,007
2,783
216,654
118,940
115,831
3,109
198,376
114,776
111,728
3,048
216,654
118,940
115,831
3,109
234,596
127,939
124,482
3,457
252,665
139,276
135,628
3,648
270,626
149,612
145,692
3,920
16,854
13,471
3,383
19,853
19,501
352
42,964
42,560
404
35,132
34,739
393
42,964
42,560
404
48,008
47,575
433
50,934
50,446
488
54,152
53,539
613
n.a.
n.a.
717
717
14,450
14,450
8,133
8,133
14,450
14,450
18,157
18,157
20,933
20,933
23,819
23,819
31,530
16,683
2,612
5,271
6,964
36,640
18,378
3,426
6,161
8,675
40,300
20,005
4,344
7,011
8,940
40,335
20,079
4,344
7,056
8,856
40,300
20,005
4,344
7,011
8,940
40,492
20,263
4,344
7,115
8,770
41,522
20,728
4,343
7,303
9,148
43,043
21,083
5,042
7,542
9,376
218,060
138,284
27,345
26,661
25,770
253,343
167,297
27,982
30,517
27,547
276,633
185,170
30,755
31,895
28,813
272,349
182,199
30,068
31,381
28,701
276,633
185,170
30,755
31,895
28,813
278,204
185,479
31,275
32,629
28,821
279,605
185,515
31,868
33,222
29,000
280,917
185,782
31,260
34,456
29,419
47 Mortgage pools or trusts2
48 Government National Mortgage Association
49
50
Multifamily
51
57
53
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
54
55
Federal National Mortgage Association3
1- to 4-family
56
57
58
59
60
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
61 Individual and others4
67 1- to 4-family5
63 Multifamily
64 Commercial
65 Farm
1. Includes loans held by nondeposit trust companies but not bank trust
departments.
2. Outstanding principal balances of mortgages backing securities insured or
guaranteed by the agency indicated.
3. Outstanding balances on FNMA's issues of securities backed by pools of
conventional mortgages held in trust. The program was implemented by FNMA in
October 1981.
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 U.S. agencies for which amounts are small or
for which separate data are not readily available.
5. Includes a new estimate of residential mortgage credit provided by individuals.
NOTE. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve in conjunction with the
Federal Home Loan Bank Board and the Department of Commerce. Separation of
nonfarm mortgage debt by type of property, if not reported directly, and
interpolations and extrapolations when required, are estimated mainly by the
Federal Reserve. Multifamily debt refers to loans on structures of five or more
units.
A40
1.55
DomesticNonfinancialStatistics • January 1984
CONSUMER INSTALLMENT CREDIT 1 Total Outstanding, and Net ChangeA
Millions of dollars
1983
Holder, and type of credit
1980
1981
1982
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Amounts outstanding (end of period)
313,472
331,697
344,798
344,748
347,189
353,012
358,020
363,662
367,604
371,561
376,390
147,013
76,756
44,041
28,448
9,911
4,468
2,835
147,622
89,818
45,954
29,551
11,598
4,403
2,751
152,069
94,322
47,253
30,202
13,891
4,063
2,998
152,408
94,675
47,505
27,455
15,551
3,980
3,174
153,471
95,364
47,838
27,541
15,842
3,943
3,190
156,603
96,349
48,652
27,804
16,207
4,159
3,238
159,666
97,319
49,139
27,900
16,369
4,356
3,271
163,313
97,708
50,121
28,067
16,615
4,457
3,381
165,971
97,274
51,123
28,319
17,130
4,338
3,449
168,352
97,370
51,767
28,713
17,624
4,243
3,492
170,823
97,522
52,578
29,668
18,080
4,157
3,562
By major type of credit
9 Automobile
10 Commercial banks
11
Indirect paper
12
Direct loans
13 Credit unions
14 Finance companies
116,838
61,536
35,233
26,303
21,060
34,242
125,331
58,081
34,375
23,706
21,975
45,275
130,227
58,851
35,178
23,673
22,596
48,780
131,976
59,291
3
133,640
60,384
3
136,183
61,870
3
138,689
63,425
3
141,677
66,065
3
142,477
67,413
3
143,621
68,828
3
144,663
70,034
3
22,721
49,964
22,880
50,376
23,269
51,044
23,502
51,762
23,972
51,640
24,451
50,613
24,759
50,034
25,147
49,482
15 Revolving
16 Commercial banks
17 Retailers
18 Gasoline companies
58,352
29,765
24,119
4,468
62,819
32,880
25,536
4,403
67,184
36,688
26,433
4,063
63,521
35,651
23,890
3,980
63,459
35,536
23,980
3,943
64,899
36,515
24,225
4,159
65,856
37,173
24,327
4,356
66,913
37,973
24,483
4,457
67,904
38,848
24,718
4,338
68,921
39,576
25,102
4,243
70,742
40,573
26,012
4,157
19 Mobile home
20 Commercial banks
21 Finance companies
22 Savings and loans
23 Credit unions
17,322
10,371
3,745
2,737
469
18,373
10,187
4,494
3,203
489
18,988
9,684
4,965
3,836
503
19,400
9,624
4,970
4,303
503
19,448
9,581
4,976
4,384
507
19,647
9,651
4,995
4,485
516
19,750
9,717
4,982
4,530
521
19,882
9,741
5,012
4,598
531
20,087
9,766
5,038
4,741
542
20,256
9,767
5,062
4,878
549
20,366
9,761
5,043
5,004
558
120,960
45,341
38,769
22,512
4,329
7,174
2,835
125,174
46,474
40,049
23,490
4,015
8,395
2,751
128,399
46,846
40,577
24,154
3,769
10,055
2,998
129,851
47,842
39,741
24,281
3,565
11,248
3,174
130,642
47,970
40,012
24,451
3,561
11,458
3,190
132,283
48,567
40,310
24,867
3,579
11,722
3,238
133,725
49,351
40,575
25,116
3,573
11,839
3,271
135,190
49,534
41,056
25,618
3,584
12,017
3,381
137,136
49,944
41,623
26,130
3,601
12,389
3,449
138,763
50,181
42,274
26,459
3,611
12,746
3,492
140,619
50,455
42,997
26,873
3,656
13,076
3,562
1 Total
2
3
4
5
6
7
8
By major holder
Commercial banks
Finance companies
Credit unions
Retailers2
Savings and loans
Gasoline companies
Mutual savings banks
24 Other
25 Commercial banks
26 Finance companies
27 Credit unions
28 Retailers
29 Savings and loans
30 Mutual savings banks
()
(3)
()
(3)
()
(3)
()
(3)
()
(3)
()
(3)
()
(3)
()
(3)
Net change (during period)4
31 Total
1,448
18,217
2,418
2,271
2,696
4,406
4,840
3,388
2,375
4,885
4,671
-7,163
8,438
-2,475
329
1,485
739
95
607
13,062
1,913
1,103
1,682
-65
-85
1,111
1,024
197
-91
201
-51
27
1,186
-520
708
147
394
299
57
1,540
362
288
169
374
-51
14
2,422
470
573
368
456
77
40
2,766
909
662
272
188
5
38
2,317
239
510
5
147
65
105
1,829
-721
646
245
507
-167
36
2,629
620
942
150
376
131
37
2,749
205
912
251
438
58
58
477
-5,830
-3,104
-2,726
-1,184
7,491
8,495
-3,455
-858
-2,597
914
11,033
1,491
527
429
98
89
875
689
612
3
1,313
1,066
3
1,973
1,284
3
2,421
1,482
3
2,521
2,359
3
285
1,243
3
1,772
1,499
3
1,238
1,302
3
341
-264
137
110
275
414
328
611
232
-70
309
-1,267
451
-178
436
-500
45 Revolving
46 Commercial banks
47 Retailers
48 Gasoline companies
1,415
-97
773
739
4,467
3,115
1,417
-65
501
650
-98
-51
917
468
150
299
514
373
192
-51
1,210
806
327
77
821
556
260
5
313
217
31
65
479
404
242
-167
1,145
856
158
131
1,300
999
243
58
49 Mobile home
50 Commercial banks
51 Finance companies
52 Savings and loans
53 Credit unions
483
-276
355
430
-25
1,049
-186
749
466
20
-37
-74
-15
49
3
22
-99
8
107
6
17
-86
1
98
4
151
28
-6
123
6
141
68
7
59
7
70
-14
15
64
5
150
8
1
134
7
102
-10
-16
118
10
107
0
-14
111
10
-927
-960
592
-1,266
-444
1,056
95
4,206
1,133
1,280
975
-314
1,217
-85
463
8
164
105
7
152
27
643
205
-264
361
-3
287
57
852
187
251
147
-23
276
14
1,072
304
62
292
41
333
40
1,457
660
291
327
12
129
38
484
-245
294
273
-26
83
105
1,461
174
545
330
3
373
36
1,866
284
814
481
-8
258
37
2,026
448
719
466
8
327
58
32
33
34
35
36
37
38
By major holder
Commercial banks
Finance companies
Credit unions
Retailers2
Savings and loans
Gasoline companies
Mutual savings banks
By major type of credit
39 Automobile
40 Commercial banks
41
Indirect paper
42
Direct loans
43 Credit unions
44 Finance companies
54 Other
55 Commercial banks
56 Finance companies
57 Credit unions
58 Retailers
59 Savings and loans
60 Mutual savings banks
• These data have been revised from December 1980 through February 1983.
1. The Board's series cover most short- and intermediate-term credit extended
to individuals through regular business channels, usually to finance the purchase
of consumer goods and services or to refinance debts incurred for such purposes,
and scheduled to be repaid (or with the option of repayment) in two or more
installments.
2. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
3. Not reported after December 1982.
(3)
()
(3)
()
()
(3)
(3)
()
(3)
<)
(3)
()
(3)
()
(3)
()
4? For 1982 and earlier, net change equals extensions, seasonally adjusted less
liquidations, seasonally adjusted. Beginning 1983, net change equals outstandings,
seasonally adjusted less outstandings of the previous period, seasonally adjusted.
NOTE: Total consumer noninstallment credit outstanding—credit scheduled to
be repaid in a lump sum, including single-payment loans, charge accounts, and
service credit—amounted to, not seasonally adjusted, $74.8 billion at the end of
1980, $80.6 billion at the end of 1981, and $85.9 billion at the end of 1982.
Consumer Debt
1.56
A41
TERMS OF CONSUMER INSTALLMENT CREDIT
Percent unless noted otherwise
1983
Item
1980
1981
1982
May
July
June
Aug.
Oct.
Sept.
Nov.
INTEREST RATES
1
?
3
4
J
6
Commercial banks'
Auto finance companies
New car
Used car
OTHER TERMS
7
8
9
10
11
12
Maturity (months)
New car
Used car
Loan-to-value ratio
New car
Used car
Amount financed (dollars)
New car
Used car
14.30
15.47
14.99
17.31
16.54
18.09
17.45
17.78
16.83
18.65
18.05
18.51
13.90
16.57
15.84
18.79
14.82
19.10
16.17
20.00
16.15
20.75
11.94
18.76
11.57
18.58
11.84
18.28
12.77
18.25
13.62
18.21
13.54
18.15
13.50
18.16
45.0
34.8
45.4
35.8
46.0
34.0
45.4
37.9
45.6
38.0
45.7
38.0
45.9
38.0
46.2
38.0
46.2
38.0
46.3
38.0
87.6
94.2
86.1
91.8
85.3
90.3
86.0
92.0
87
92
87
93
87
93
87
93
86
93
86
93
6,322
3,810
7,339
4,343
8,178
4,746
8,572
4,984
8,512
5,039
8,642
5,052
8,724
5,103
8,792
5,144
8,982
5,213
9,118
5,316
3
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.
13.46
16.39
15.47
18.75
13.50
16.28
15.58
18.75
3. At auto finance companies.
A42
1.57
DomesticNonfinancialStatistics • January 1984
F U N D S RAISED IN U.S. CREDIT MARKETS
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1980
1980
1981
1981
1982
1983
1982
H2
HI
H2
HI
H2
HI
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors . . . .
By sector and instrument
2 U.S. government
3 Treasury securities
4 Agency issues and mortgages
6
7
8
9
10
11
12
13
Private domestic nonfinancial sectors
Debt capital instruments
Tax-exempt obligations
Corporate bonds
Mortgages
Home mortgages
Multifamily residential
Commercial
Farm
319.4
369.8
386.0
343.2
377.2
395.3
371.3
392.4
362.0
356.8
434.8
495.2
56.8
57.6
-.9
53.7
55.1
-1.4
37.4
38.8
-1.4
79.2
79.8
-.6
87.4
87.8
-.5
161.3
162.1
-.9
92.5
93.1
-.6
87.8
88.3
-.5
86.9
87.3
-.4
106.9
108.3
-1.4
215.5
215.9
-.4
230.2
230.2
-.1
262.6
171.1
21.9
22.9
126.3
94.0
7.1
18.1
7.1
316.2
199.7
28.4
21.1
150.2
112.2
9.2
21.7
7.2
348.6
211.2
30.3
17.3
163.6
120.0
7.8
23.9
11.8
264.0
192.0
30.3
26.7
135.1
96.7
8.8
20.2
9.3
289.8
158.4
21.9
22.1
114.5
75.9
4.3
24.6
9.7
234.1
152.4
50.5
18.8
83.0
56.6
1.3
20.0
5.2
278.7
189.9
31.9
20.7
137.3
99.2
9.6
20.9
7.6
304.6
179.3
21.1
26.1
132.0
92.6
4.9
25.2
9.3
275.1
137.5
22.6
18.0
96.9
59.2
3.7
23.9
10.1
249.9
139.7
41.7
10.8
87.3
55.8
4.2
21.4
5.9
219.3
166.1
59.4
26.9
79.9
58.6
-1.7
18.6
4.4
265.0
223.7
60.9
20.9
142.0
106.7
7.8
27.2
.2
91.6
40.2
27.1
2.9
21.3
116.5
48.8
37.4
5.2
25.1
137.5
45.4
51.2
11.1
29.7
72.0
4.9
36.7
5.7
24.8
131.5
24.1
54.7
19.2
33.4
81.6
18.3
54.4
-3.3
12.2
88.8
13.0
59.7
-9.2
25.3
125.3
28.9
45.5
12.0
38.9
137.6
19.3
63.9
26.3
28.0
110.1
19.3
70.1
6.5
14.3
53.2
17.4
38.8
-13.0
10.2
41.3
38.8
3.8
-16.3
15.0
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
19
20
21
22
23
24
By borrowing sector
State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
262.6
15.4
137.3
12.3
28.0
69.7
316.2
19.1
169.4
14.6
32.4
80.6
348.6
20.5
176.4
21.4
34.4
96.0
264.0
20.3
117.5
14.4
33.7
78.1
289.8
9.7
120.6
16.3
39.6
103.7
234.1
36.3
86.3
9.0
29.8
72.7
278.7
21.7
121.3
12.8
40.6
82.3
304.6
9.1
139.8
20.1
39.8
95.8
275.1
10.2
101.3
12.5
39.5
111.5
249.9
29.3
87.6
9.0
34.6
89.3
219.3
43.3
86.1
9.1
24.9
56.0
265.0
51.3
139.8
-1.1
40.0
34.9
25 Foreign net borrowing in United States
26 Bonds
27 Bank loans n.e.c
28 Open market paper
29 U.S. government loans
13.5
5.1
3.1
2.4
3.0
33.8
4.2
19.1
6.6
3.9
20.2
3.9
2.3
11.2
2.9
27.2
.8
11.5
10.1
4.7
27.2
5.4
3.7
13.9
4.2
15.7
6.6
-6.2
10.7
4.5
26.7
-.4
18.5
4.5
4.0
31.9
3.3
3.1
20.6
4.9
22.5
7.6
4.2
7.1
3.5
12.8
2.4
-5.1
12.5
3.0
18.6
10.8
-7.2
9.0
6.0
18.7
4.4
14.9
-4.6
4.0
332.9
403.6
406.2
370.4
404.4
411.0
397.9
424.4
384.5
369.6
453.4
513.9
30 Total domestic plus foreign
Financial sectors
31 Total net borrowing by financial sectors
By instrument
32 U.S. government related
33 Sponsored credit agency securities
34 Mortgage pool securities
35 Loans from U.S. government
36 Private financial sectors
37 Corporate bonds
38 Mortgages
39 Bank loans n.e.c
40 Open market paper
41 Loans from Federal Home Loan Banks
By sector
42 Sponsored credit agencies
43 Mortgage pools
44 Private financial sectors
45 Commercial banks
46 Bank affiliates
47 Savings and loan associations
48 Finance companies
49 REITs
45.8
74.6
82.5
63.3
85.4
69.3
64.0
87.4
83.4
89.8
48.7
70.8
22.0
7.0
16.1
-1.1
23.8
10.1
47.9
24.3
23.1
.6
34.6
7.8
47.4
30.5
15.0
1.9
38.0
-.8
-.5
2.2
20.9
16.2
64.9
14.9
49.5
.4
4.4
2.3
.1
3.2
-2.0
.8
40.4
20.8
18.6
1.1
23.6
3.1
-.2
-.4
10.8
10.3
45.2
28.9
14.9
1.4
42.2
-.3
-.8
3.2
23.5
16.7
49.6
32.1
15.1
2.4
33.8
-1.4
-.2
1.1
18.4
15.8
61.3
23.6
37.0
.8
28.5
-1.2
.1
5.2
14.0
10.4
67.9
-2.5
70.4
-.4
18.0
9.2
44.8
24.4
19.2
1.2
18.5
7.1
-.1
-.4
4.8
7.1
68.4
6.3
62.1
-.3
9.6
4.3
37.1
23.1
13.6
.4
37.5
7.5
.1
2.8
14.6
12.5
-19.7
5.8
.1
1.2
-18.0
-8.8
2.9
12.2
.1
-5.1
8.6
-12.9
5.9
16.1
23.8
1.1
2.0
6.9
16.9
-2.5
23.5
13.6
37.5
1.3
7.2
13.5
18.1
-1.4
24.8
23.1
34.6
1.6
6.5
12.6
16.6
-1.3
25.6
19.2
18.5
.5
6.9
7.4
6.3
-2.2
32.4
15.0
38.0
.4
8.3
15.5
14.1
.2
15.3
49.5
4.4
1.2
1.9
-3.0
4.9
.1
21.8
18.6
23.6
.3
8.0
12.3
5.8
-2.5
30.3
14.9
42.2
.2
6.9
16.8
18.5
.2
34.5
15.1
33.8
.5
9.7
14.1
9.7
.2
24.4
37.0
28.5
.7
9.7
9.1
9.5
.1
6.3
62.1
-19.7
1.7
-5.8
-15.2
.2
.1
-2.5
70.4
2.9
.8
6.1
-10.8
7.5
.1
511.8
131.8
21.1
29.1
131.1
28.9
51.8
56.1
61.8
467.9
134.3
22.6
24.2
96.6
19.3
69.3
51.9
49.7
459.4
167.6
41.7
12.0
87.3
19.3
70.2
33.0
28.4
502.1
284.0
59.4
43.5
79.8
17.4
32.8
-22.1
7.4
584.7
298.2
60.9
37.5
142.0
38.8
13.6
-12.3
6.1
23.7
13.2
10.6
7.0
3.8
-.2
47.0
24.0
23.0
15.8
4.4
2.9
87.1
38.8
48.3
38.2
4.4
5.7
*
*
All sectors
50 Total net borrowing
51 U.S. government securities
52 State and local obligations
53 Corporate and foreign bonds
54 Mortgages
55 Consumer credit
56 Bank loans n.e.c
57 Open market paper
58 Other loans
378.7
79.9
21.9
38.0
126.2
40.2
29.9
15.0
27.5
478.2
90.5
28.4
32.8
150.2
48.8
59.3
26.4
41.9
488.7
84.8
30.3
29.0
163.5
45.4
53.0
40.3
42.4
433.7
122.9
30.3
34.6
134.9
4.9
47.8
20.6
37.8
489.8
133.0
21.9
26.7
113.9
24.1
60.6
54.0
55.8
480.3
225.9
50.5
27.7
83.0
18.3
51.4
5.4
17.9
462.0
132.0
31.9
23.5
137.0
13.0
77.8
6.1
40.7
External corporate equity funds raised in United States
59 Total new share issues
60 Mutual funds
61 All other
62
Nonfinancial corporations
63
Financial corporations
64
Foreign shares purchased in United States
6.5
.9
5.6
2.7
2.5
.4
1.9
-.1
1.9
-.1
2.5
-.5
-3.8
.1
-3.9
-7.8
3.2
.8
22.2
5.2
17.1
12.9
2.1
2.1
-3.7
6.8
-10.6
-11.5
.9
*
35.4
18.6
16.8
11.4
4.1
1.3
28.0
4.6
23.3
18.8
2.3
2.2
10.2
8.1
2.1
.9
.5
.7
-17.7
5.6
-23.2
-23.8
1.2
-.7
Flow of Funds
1.58
A43
DIRECT A N D INDIRECT SOURCES OF F U N D S TO CREDIT MARKETS
Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates.
1980
Transaction category, or sector
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
By public agencies and foreign
7 Total net advances
3 U.S. government securities
4 Residential mortgages
5 FHLB advances to savings and loans
6 Other loans and securities
1977
1978
1979
1980
1981
1981
1983
1982
1982
H2
HI
H2
HI
H2
HI
319.4
369.8
386.0
343.2
377.2
395.3
371.3
392.4
362.0
356.8
434.8
495.2
79.3
34.9
20.0
4.3
20.2
102.3
36.1
25.7
12.5
28.0
75.2
-6.3
35.8
9.2
36.5
97.0
15.7
31.7
7.1
42.4
97.4
17.2
23.4
16.2
40.6
109.3
17.9
61.1
.8
29.5
77.2
-.8
28.2
10.3
39.4
113.8
31.2
21.9
16.7
44.1
81.0
3.1
25.0
15.8
37.1
107.9
17.7
48.1
10.4
31.7
110.8
18.2
74.0
-8.8
27.4
127.5
52.9
80.7
-12.9
6.8
7
8
9
10
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
10.0
22.5
7.1
39.6
17.1
40.3
7.0
38.0
19.0
53.0
7.7
-4.6
23.7
45.6
4.5
23.2
24.1
48.2
9.2
16.0
16.7
65.3
9.8
17.6
22.2
44.0
-10.3
21.3
27.9
47.2
2.4
36.4
20.3
49.2
16.0
-4.4
14.2
62.5
.1
31.1
19.1
68.1
19.5
4.1
8.2
69.2
12.7
37.5
11
12
Agency and foreign borrowing not in line 1
Sponsored credit agencies and mortgage pools
Foreign
22.0
13.5
37.1
33.8
47.9
20.2
44.8
27.2
47.4
27.2
64.9
15.7
40.4
26.7
45.2
31.9
49.6
22.5
61.3
12.8
68.4
18.6
67.9
18.7
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
275.6
45.1
21.9
24.1
81.0
107.8
4.3
338.4
54.3
28.4
23.4
95.6
149.3
12.5
379.0
91.1
30.3
18.5
91.9
156.3
9.2
318.2
107.2
30.3
19.3
73.7
94.8
7.1
354.4
115.9
21.9
19.4
56.7
156.9
16.2
366.6
207.9
50.5
15.4
-3.3
96.8
.8
361.2
132.7
31.9
11.8
80.5
114.5
10.3
355.7
100.6
21.1
20.9
75.5
154.3
16.7
353.1
131.1
22.6
17.9
37.9
159.5
15.8
323.0
149.9
41.7
-1.7
11.7
131.7
10.4
411.0
265.8
59.4
32.4
-17.2
62.0
-8.8
454.3
245.3
60.9
23.4
33.7
78.1
-12.9
Private financial intermediation
20 Credit market funds advanced by private financial institutions
71 Commercial banking
Savings institutions
n
23 Insurance and pension funds
24 Other finance
258.8
87.8
78.5
69.0
23.6
302.3
129.0
72.8
75.0
25.5
294.7
123.1
56.7
66.4
48.5
262.3
101.1
54.9
74.4
32.0
305.2
103.6
27.2
79.3
95.2
271.2
108.5
30.6
94.2
37.9
282.8
146.5
72.9
65.6
-2.2
317.3
99.6
41.5
75.3
101.0
293.1
107.6
12.8
83.4
89.4
272.8
109.7
29.5
95.4
38.1
268.9
107.1
31.0
93.0
37.8
351.1
127.4
128.5
107.4
-12.2
76
27
Sources of funds
Private domestic deposits and RPs
Credit market borrowing
258.8
139.0
23.8
302.3
141.0
37.5
294.7
142.0
34.6
262.3
168.6
18.5
305.2
211.7
38.0
271.2
173.4
4.4
282.8
174.2
23.6
317.3
213.8
42.2
293.1
209.6
33.8
272.8
163.4
28.5
268.9
182.7
-19.7
351.1
210.2
2.9
78
2.9
30
31
32
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
96.1
1.4
4.3
51.4
39.0
123.8
6.5
6.8
62.2
48.4
118.1
27.6
.4
49.1
41.0
75.2
-21.7
-2.6
65.4
34.0
55.5
-8.7
-1.1
73.2
-7.9
93.5
-27.7
6.1
85.9
29.2
85.0
-15.3
1.0
61.3
38.0
61.3
-8.7
6.5
62.7
.8
49.8
-8.7
-8.7
83.8
-16.7
80.8
-30.1
-2.1
85.4
27.6
105.9
-25.4
14.1
86.4
30.7
138.0
-17.5
7.4
89.3
58.8
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
40.6
24.6
-.8
-3.2
9.6
10.4
73.6
36.3
3.6
-1.8
15.6
19.9
118.9
61.4
9.9
5.7
12.1
29.8
74.4
38.3
7.0
.6
-4.3
32.9
87.2
47.4
9.6
-8.9
3.7
35.4
99.7
58.1
30.9
-9.4
-2.0
22.1
102.0
58.6
9.2
-.2
1.4
32.9
80.6
37.2
9.5
-5.5
-3.3
42.7
93.8
57.6
9.7
-12.4
10.7
28.2
78.7
43.1
28.4
-26.3
6.7
26.8
122.4
72.7
33.4
7.4
-10.7
19.6
106.1
75.0
47.1
-12.7
-10.2
6.9
39 Deposits and currency
40 Currency
41 Checkable deposits
42 Small time and savings accounts
43 Money market fund shares
44 Large time deposits
45 Security RPs
46 Deposits in foreign countries
148.6
8.3
17.2
93.6
.2
25.7
2.2
1.3
152.2
9.3
16.2
65.9
6.9
44.4
7.5
2.0
151.4
7.9
18.7
59.2
34.4
23.0
6.6
1.5
180.0
10.3
5.0
83.1
29.2
44.7
6.5
1.1
221.7
9.5
18.1
47.2
107.5
36.4
2.5
.5
179.4
8.4
13.0
137.0
24.7
-5.2
3.8
-2.4
185.5
9.7
9.9
90.2
-3.4
69.8
7.8
1.7
222.6
8.0
29.8
30.7
104.1
41.6
7.7
.8
220.7
11.0
6.5
63.6
110.8
31.2
-2.6
.2
166.2
4.5
6.7
95.1
39.4
21.2
1.1
-1.8
192.1
12.3
19.1
178.6
10.0
-31.6
6.6
-2.9
231.9
14.2
55.6
295.0
-84.0
-67.5
11.0
7.4
47 Total of credit market instruments, deposits and
currency
75
189.1
225.8
270.3
254.4
308.9
279.1
287.5
303.3
314.5
244.9
314.5
337.9
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
23.8
93.9
41.0
25.3
89.3
44.6
18.5
77.7
23.0
26.2
82.4
1.5
24.1
86.1
7.3
26.6
74.0
-10.2
19.4
78.3
6.0
26.8
89.2
27.8
21.1
83.0
-13.1
29.2
84.4
1.0
24.4
65.4
-21.3
24.8
77.3
20.0
MEMO: Corporate equities not included above
51 Total net issues
52 Mutual fund shares
53 Other equities
6.5
.9
5.6
1.9
-.1
1.9
-3.8
.1
-3.9
22.2
5.2
17.1
-3.7
6.8
-10.6
35.4
18.6
16.8
28.0
4.6
23.3
10.2
8.1
2.1
-17.7
5.6
-23.2
23.7
13.2
10.6
47.0
24.0
23.0
87.1
38.8
48.3
54 Acquisitions by financial institutions
55 Other net purchases
7.4
-.9
4.5
-2.7
9.7
-13.5
16.8
5.4
22.1
-25.9
27.9
7.5
22.3
5.7
25.3
-15.1
18.9
-36.6
19.3
4.4
36.4
10.6
62.4
24.7
48
49
50
NOTES BY LINE NUMBER.
1.
2.
6.
11.
13.
18.
26.
27.
29.
30.
31.
Line 1 of table 1.58.
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.
Demand deposits at commercial banks.
Excludes net investment of these reserves in corporate equities.
32. Mainly retained earnings and net miscellaneous liabilities.
33. Line 12 less line 20 plus line 27.
34-38. Lines 14-18 less amounts acquired 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 • January 1984
NONFINANCIAL BUSINESS ACTIVITY
Selected Measures
1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1983
Measure
1981
1980
1982
Apr.
May
July
June
Aug.
Sept.'
Nov.'
Oct.'
Dec.
1 Industrial production1
147.0
151.0
138.6
142.6
144.4
146.4
149.7
151.8
153.8
155.0
156.1
156.9
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
146.7
145.3
145.4
145.2
151.9
147.6
150.6
149.5
147.9
151.5
154.4
151.6
141.8
141.5
142.6
139.8
143.3
133.7
144.5
142.8
147.7
136.2
150.8
139.7
146.2
144.5
150.4
136.5
152.2
141.7
148.1
146.4
152.4
138.2
154.5
143.7
150.9
149.0
154.8
141.0
158.1
147.8
153.2
150.7
156.3
143.1
162.2
149.7
154.9
152.1
157.3
144.9
165.4
152.2
155.8
152.9
157.1
147.1
166.5
153.9
156.9
154.2
157.8
149.3
167.2
154.9
158.0
155.4
158.7
150.8
167.6
155.3
146.7
150.4
137.6
143.1
145.1
147.4
150.6
152.8
155.1
156.4
157.2
157.8
79.6
80.4
79.4
80.7
71.1
70.1
72.9
72.5
73.8
73.5
74.9
74.4
76.4
76.5
77.3
77.4
78.4
78.6
79.0
79.4
79.3
79.8
79.4
80.1
2
3
4
5
6
7
Industry groupings
8 Manufacturing
Capacity utilization (percent)12
9 Manufacturing
10 Industrial materials industries
3
107.0
111.0
111.0
129.0
148.0
151.0
137.0
146.0
143.0
139.0
145.0
n.a.
12
13
14
15
16
17
18
19
20
21
Nonagricultural employment, total4
Goods-producing, total
Manufacturing, total
Manufacturing, production-worker . . .
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable personal income5
Retail sales®
137.4
110.1
104.3
99.3
152.4
343.7
317.7
264.4
333.8
303.8
138.5
109.4
103.7
98.0
154.4
386.5
349.7
287.3
373.7
330.6
136.2
102.6
96.9
89.4
154.7
409.3
367.2
286.2
397.3
326.0
135.4
99.4
94.5
86.9
155.2
426.8'
382.2
293.4
417.4
364.7
135.9
100.2
95.1
87.6
155.5
431.6
386.9
296.4
420.5
376.1
136.5
100.9
95.6
88.2
156.1
433.7
389.0
299.2
422.0
378.9
137.0
101.8
96.3
89.2
156.3
436.1'
391.9
302.6
429.0'
380.3
136.4
102.2
96.6
89.5
155.1
437.5'
393.6
304.6'
430.1'
373.7
138.1
102.7
97.0
89.9
157.5
441.5
396.2
308.2
434.1
397.1
138.4
103.7
98.0
91.2
157.5
446.3
400.5
310.0
438.8
385.3
138.9
104.4
98.6
91.9
157.9
449.6
401.5
311.9
442.0
389.7
139.3
104.8
99.1
92.5
158.2
n.a.
n.a.
n.a.
n.a.
n.a.
22
23
Prices7
Consumer
Producer finished goods
246.8
247.0
272.4
269.8
289.1
280.7
295.5
283.0
297.1
284.3
298.1
285.0
299.3
285.7
300.3
286.2
301.8
285.1
302.6
287.9
303.1
286.8
n.a.
n.a.
11 Construction contracts (1977 = 100)
6. Based on Bureau of Census data published in Survey of Current Business.
1. 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.
1. The capacity utilization series has been revised back to January 1967.
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).
2.11
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.
OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION
Seasonally adjusted
1983
1983
1983
Series
Ql
Q2
Q3
Q4
Output (1967 = 100)
Ql
Q2
Q3
Q4
Capacity (percent of 1967 output)
Q2
Ql
Q3
Q4
Utilization rate (percent)
1
2
3
Total industry
Mining
Utilities
138.5
144.5
151.8
156.0
194.6
195.5
196.4
197.3
71.2
73.9
77.3
79.1
116.7
163.6
112.3
169.6
116.1'
178.2
121.0
179.7
165.2
208.5
165.3
209.8
165.4
211.1
165.5
212.4
70.6
78.5
67.9
80.8
70.2'
84.4
73.1
84.6
4
5
6
Manufacturing
Primary processing
Advanced processing
138.4
145.2
152.8
157.1
195.7
196.6
197.5
198.4
70.7
73.8
77.4
79.2
137.0
139.7
145.2
145.1
152.8'
152.8'
157.7
156.7
194.3
196.5
194.8
197.6
195.3
198.6
195.8
199.7
70.5
71.1
74.6
73.5
78.3
76.9
80.5
78.5
7
Materials
134.8
141.7
149.9
154.7
192.3
192.9
193.4
194.0
70.1
73.5
77.5'
195.6
139.9
218.8
230.7
166.1
296.6
196.0
139.8
219.6
231.6
166.9
298.3
196.5
139.6
220.6
232.7
n.a.
n.a.
64.2
56.1
75.2
73.8
90.7
69.4
68.9
60.7
78.5
77.9
92.3
74.0
63.9
81.5'
81.2
97.5
76.4
154.3
154.7
155.3
79.5
78.7
82.3
8
9
10
11
12
13
Durable goods
Metal materials
Nondurable goods
Textile, paper, and chemical
Paper
Chemical
125.2
78.6
163.7
169.3
149.9
204.7
134.7
84.9
171.7
179.6
153.4
219.4
144.2
89.3'
179.1'
188.C
162.8
227.8'
150.4
93.4
185.0
195.2
n.a.
n.a.
195.2
140.2
217.8
229.4
165.3
294.8
14
Energy materials
122.2
121.5
127.4
127.6
153.9
79.8
76.6
66.9
83.9
83.9
n.a.
n.a.
82.2
Labor Market
2.11
A45
Continued
Previous cycle1
Latest cycle2
1982
Low
Dec.
1983
Series
High
Low
High
May
Apr.
June
July
Aug.
Sept/
Nov/
Oct/
Dec.
Capacity utilization rate (percent)
76.3
69.5
83.5
77.3
70.2
85.0
78.2
70.8
84.8
78.7
71.7
83.4
79.1
73.0
84.2
79.4
74.5
86.2
74.9
76.4
77.3
78.4
79.0
79.3
79.4
75.7
74.4
77.1
76.0
78.1
76.9
79.7
77.8
80.6
78.0
80.4
78.7
80.5
79.0
73.5
68.9
61.0
74.4
70.0
61.2
76.5
72.1
62.3
77.4
73.6
64.0
78.6
75.2
65.5
79.4
76.2
68.1
79.8
76.8
66.6
80.1
76.9
66.1
77.2
78.7
79.6
80.7
81.1
82.9
84.0
83.9
83.7
76.4
91.0
72.6
78.1
92.9
74.0
79.2
93.1
75.3
80.4
96.7
75.9
80.5
96.9
75.5
82.6
99.0
77.8
83.9
100.1
79.0
83.9
99.9
79.4
83.9
n.a.
n.a.
78.9
78.5
78.8
82.6
82.8
81.6
81.3
81.8
83.3
15 Total industry
16 Mining
17 Utilities
88.4
91.8
94.9
71.1
86.0
82.0
87.3
88.5
86.7
76.5
84.0
83.8
69.7
71.7
79.0
73.1
67.5
80.9
73.9
68.2
80.9
74.8
68.1
80.8
18 Manufacturing
87.9
69.0
87.5
75.5
68.9
72.9
73.8
19
20
93.7
85.5
68.2
69.4
91.4
85.9
72.6
77.0
66.2
70.4
73.4
72.5
74.6
73.4
71 Materials
22 Durable goods
23
Metal materials
92.6
91.4
97.8
69.3
63.5
68.0
88.9
88.4
95.4
74.2
68.4
59.4
66.6
59.8
46.8
72.5
67.7
59.9
24
25
94.4
67.4
91.7
77.5
71.6
26
27
Nondurable goods
Textile, paper, and
chemical
Paper
Chemical
95.1
99.4
95.5
65.4
72.4
64.2
92.3
97.9
91.3
75.5
89.8
70.7
70.0
87.4
65.4
28
Energy materials
94.5
84.4
88.7
84.4
78.5
Primary processing
Advanced processing . . . .
1. Monthly high 1973; monthly low 1975.
2.12
2. Preliminary; monthly highs December 1978 through January 1980; monthly
lows July through October 1980.
LABOR FORCE, EMPLOYMENT, A N D UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1983
Category
1980
1981
1982
June
July
Aug.
Sept.
Oct.'
Nov.'
Dec.
HOUSEHOLD SURVEY DATA
1 Noninstitutional population1
169,847
172,272
174,451
176,320
176,498
176,648
176,811
176,990
177,151
177,325
2 Labor force (including Armed Forces)1
3 Civilian labor force
Employment
4
Nonagricultural industries2
5
Agriculture
Unemployment
Number
6
7
Rate (percent of civilian labor force)...
8 Not in labor force
109,042
106,940
110,812
108,670
112,384
110,204
114,127
111,905'
114,017'
111,825'
114,325'
112,117'
114,438'
112,229'
114,077
111,866
114,235
112,035
114,340
112,136
95,938
3,364
97,030
3,368
96,125
3,401
97,264
3,479'
97,726'
3,499'
98,035'
3,449'
98,568'
3,308'
98,730
3,240
99,349
3,257
99,585
3,356
7,637
7.1
60,805
8,273
7.6
61,460
10,678
9.7
62,067
11,162'
10.0
62,220'
LO.EOO'
9.5
62,481'
10,633'
9.5
62,323'
10,353'
9.2
62,373'
9,896
8.8
62,913
9,429
8.4
62,916
9,195
8.2
62,985
9 Nonagricultural payroll employment3
90,406
91,156
89,596
89,844
90,152
89,748'
90,851
91,087
91,413
91,644
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
20,285
1,027
4,346
5,146
20,310
5,160
17,890
16,241
20,170
1,132
4,176
5,157
20,551
5,301
20,547
16,024
18,853
1,122
3,912
5,057
20,547
5,350
20,401
15,784
18,582
1,003
3,933
4,992
20,494
5,451
19,668
15,721
18,733
1,017
3,974
4,984
20,529
5,465
19,770
15,680
18,793
1,023
4,014
4,341
20,580
5,488
19,835
15,674'
18,871
1,026
4,038
5,031
20,612
5,499
19,913
15,861
19,064
1,044
4,060
5,019
20,666
5,503
19,956
15,775
19,182
1,044
4,096
5,027
20,705
5,523
20,051
15,785
19,271
1,053
4,110
5,024
20,732
5,537
20,122
15,795
ESTABLISHMENT SURVEY DATA
10
11
12
13
14
15
16
17
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 1983
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A46
2.13
Domestic Nonfinancial Statistics • January 1984
INDUSTRIAL PRODUCTION
Indexes and Gross Value
Monthly data are seasonally adjusted
O
1967
proportion
1982
avg.
1982
Dec.
1983
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept/
Oct.
NOV.P
Index <1967 = 100)
MAJOR MARKET
1 Total index
100.00
138.6
135.2
137.4
138.1
140.0
142.6
144.4
146.4
149.7
151.8
153.8
155.0
156.1
60.71
47.82
27.68
20.14
12.89
39.29
141.8
141.5
142.6
139.8
143.3
133.7
139.9
139.5
142.0
136.1
141.5
127.8
140.9
140.1
143.6
135.3
143.7
132.0
140.3
138.9
143.4
132.7
145.3
134.9
141.6
139.9
144.3
133.8
147.8
137.6
144.5
142.8
147.7
136.2
150.8
139.7
146.2
144.5
150.4
136.5
152.2
141.7
148.1
146.4
152.4
138.2
154.5
143.7
150.9
149.0
154.8
141.0
158.1
147.8
153.2
150.7
156.3
143.1
162.2
149.7
154.9
152.1
157.3
144.9
165.4
152.2
155.8
152.9
157.1
147.1
166.5
153.9
156.9
154.2
157.8
149.3
167.2
154.9
7.89
2.83
2.03
1.90
.80
5.06
1.40
1.33
1.07
2.59
129.2
129.5
99.0
86.6
206.9
129.1
102.6
104.6
149.7
135.0
125.9
128.7
99.0
87.9
204.0
124.3
94.2
98.3
150.8
129.8
131.6
136.2
107.0
97.1
210.2
129.1
109.5
112.9
149.0
131.4
134.4
144.3
120.8
107.3
203.9
128.8
105.8
108.8
156.7
129.7
136.3
142.6
116.4
99.9
209.3
132.8
105.0
108.5
168.3
133.3
140.5
144.9
117.8
102.7
213.6
138.1
106.1
109.7
180.5
137.9
145.5
152.2
124.9
107.4
221.5
141.8
112.8
116.1
181.9
140.9
149.2
160.0
135.4
118.3
222.6
143.2
114.4
118.4
185.6
141.3
152.9
167.0
145.4
129.8
221.9
144.9
116.2
119.7
187.3
143.0
154.2
168.1
147.0
132.0
221.8
146.4
121.2
125.0
187.5
143.2
157.5
172.9
153.1
135.0
223.1
148.8
125.2
129.7
186.3
146.1
157.1
171.0
149.2
129.6
226.2
149.3
130.8
135.1
185.5
144.4
156.7
171.9
150.1
129.4
227.3
148.1
125.9
130.2
184.6
145.1
18 Nondurable consumer goods
19 Clothing
20 Consumer staples
21
Consumer foods and tobacco
22
Nonfood staples
23
Consumer chemical products . . . .
24
Consumer paper products
25
Consumer energy products
26
19.79
4.29
15.50
8.33
7.17
2.63
1.92
2.62
1.45
148.0
148.4
148.3
147.0
147.5
150.5
152.3
153.6
155.6
157.1
157.2
157.1
158.2
159.0
149.7
169.7
219.9
127.7
150.2
170.8
158.8
149.5
169.6
220.9
128.3
148.4
169.3
158.6
150.9
167.6
222.6
127.1
142.2
164.1
157.4
149.5
166.5
220.9
127.9
140.2
162.9
158.1
148.4
169.4
225.6
128.1
143.3
166.1
161.1
150.9
172.9
225.5
129.2
152.2
175.5
162.8
153.2
174.0
227.8
128.6
153.4
174.3
164.3
155.9
174.1
229.0
130.1
151.2
170.5
166.1
156.6
177.2
233.8
132.6
153.2
173.2
168.0
156.3
181.6
239.7
137.4
155.7
179.9
167.6
154.6
182.7
240.0
138.2
157.7
182.8
167.3
155.5
180.9
239.7
137.6
153.6
175.6
181.9
239.9
138.1
155.9
Equipment
27 Business
28 Industrial
29
Building and mining
30
Manufacturing
31
Power
12.63
6.77
1.44
3.85
1.47
157.9
134.9
214.2
107.2
129.9
148.1
117.9
171.9
97.0
119.7
146.6
118.4
173.8
97.6
118.3
142.7
113.7
153.6
97.9
116.0
143.7
113.1
145.3
99.7
116.2
146.9
113.5
141.8
101.7
116.6
147.7
114.5
146.2
102.5
115.0
150.2
116.3
148.7
105.0
114.1
153.3
119.9
154.4
108.9
114.6
156.6
124.3
159.2
113.3
119.0
158.7
125.6
160.8
115.0
118.8
161.5
127.0
166.9
115.3
118.5
164.4
129.4
175.2
115.9
119.8
5.86
3.26
1.93
.67
184.4
253.5
103.9
80.5
183.0
258.6
96.2
65.1
179.2
254.9
90.8
66.0
176.1
251.2
88.2
63.4
179.2
255.7
90.1
63.4
185.4
264.3
92.0
70.2
186.1
265.0
92.6
71.3
189.5
270.9
93.2
70.4
191.9
276.0
92.0
70.8
194.0
277.4
95.9
70.8
196.9
281.7
97.6
70.6
201.4
288.3
100.0
70.9
204.7
294.0
99.4
73.6
36 Defense and space
7.51
109.4
115.9
116.4
116.1
117.0
118.2
117.6
118.0
120.4
120.2
121.8
122.9
123.9
Intermediate products
37 Construction supplies
38 Business supplies
39 Commercial energy products
6.42
6.47
1.14
124.3
162.1
181.1
123.0
159.8
182.4
127.0
160.3
180.6
129.7
160.9
178.6
133.1
162.3
180.3
136.4
165.2
183.3
138.4
166.0
183.1
142.1
166.8
181.4
145.8
170.4
185.2
149.0
175.3
186.9
151.4
179.3
190.2
152.3
180.7
187.0
152.7
181.6
191.2
20.35
4.58
5.44
10.34
5.57
125.0
95.3
166.8
116.2
79.9
116.5
91.1
155.3
107.4
68.7
121.5
96.2
157.5
113.8
78.1
125.3
101.6
158.8
118.2
82.4
128.7
104.0
162.5
121.9
86.0
132.4
106.5
167.2
125.4
87.8
134.7
108.5
170.6
127.5
89.3
137.0
109.5
175.8
128.7
89.6
141.1
115.6
180.8
131.5
90.8
144.2
119.9
183.6
134.2
93.1
147.4
123.1
186.0
137.8
94.8
149.5
124.8
188.5
139.9
98.2
150.9
126.0
193.4
139.5
96.4
2 Products
3
Final products
4
Consumer goods
5
Equipment
6 Intermediate products
7 Materials
Consumer goods
8 Durable consumer goods
9 Automotive products
10
Autos and utility vehicles
11
Autos
12
Auto parts and allied goods
13 Home goods
14
Appliances, A/C, and TV
15
Appliances and TV
16
Carpeting and furniture
17
Miscellaneous home goods
32
33
34
35
Commercial transit, farm
Commercial
Transit
Farm
Materials
40 Durable goods materials
41 Durable consumer parts
42 Equipment parts
43 Durable materials n.e.c
44
Basic metal materials
45 Nondurable goods materials
46 Textile, paper, and chemical
materials
47
Textile materials
48
Paper materials
49
Chemical materials
50 Containers, nondurable
51 Nondurable materials n.e.c
168.2
10.47
157.5
155.6
159.7
164.0
167.5
168.7
172.1
174.3
177.0
178.0
182.3
185.0
185.1
7.62
1.85
1.62
4.15
1.70
1.14
161.1
102.2
145.6
193.5
161.4
127.9
160.0
102.1
144.1
192.0
155.2
127.2
163.7
104.7
150.1
195.4
162.1
129.6
170.0
106.4
150.1
206.2
159.6
130.5
174.3
110.6
149.5
212.5
163.8
127.7
175.9
110.6
150.8
214.9
163.2
129.1
180.2
114.6
154.4
219.6
164.3
129.7
182.8
116.0
155.0
223.6
166.1
129.9
186.1
119.0
161.1
225.9
166.5
131.3
186.4
121.5
161.8
225.1
170.6
133.0
191.6
123.1
165.5
232.4
173.8
132.7
194.9
125.7
167.5
236.5
175.9
132.3
195.3
123.5
167.5
238.2
177.4
128.5
52 Energy materials
53 Primary energy
54 Converted fuel materials
8.48
4.65
3.82
125.1
116.0
136.3
120.4
113.5
128.9
123.0
116.5
130.8
121.8
115.4
129.6
121.9
114.4
131.1
121.6
113.9
131.0
121.1
113.8
129.9
121.8
112.6
132.9
127.7
115.4
142.7
128.0
113.9
145.2
126.4
112.9
142.8
126.1
114.2
140.7
127.1
114.6
142.3
Supplementary groups
55 Home goods and clothing
56 Energy, total
57 Products
58 Materials
9.35
12.23
3.76
8.48
119.6
135.7
159.6
125.1
118.2
132.2
158.7
120.4
120.8
132.4
153.8
123.0
119.9
131.0
151.9
121.8
122.0
131.9
154.5
121.9
126.3
133.9
161.7
121.6
129.2
133.8
162.4
121.1
130.2
133.6
160.4
121.8
132.3
138.5
162.9
127.7
133.3
139.4
165.2
128.0
135.5
139.1
167.5
126.4
136.0
137.7
163.7
126.1
136.1
139.2
166.6
127.1
Output
2.13
A47
Continued
1967
Grouping
SIC
code
portion
1982
avg.
1983
1982
Dec.
Jan.
Feb/
Mar.
Apr.
May
June
July
Aug.
Sept/
Oct.
Nov.? Dec/
Index (1967 = 100)
MAJOR INDUSTRY
1 Mining and utilities
2 Mining
3 Utilities
4
Electric
5 Manufacturing
6 Nondurable
7 Durable
12.05
6.36
5.69
3.88
87.95
35.97
51.98
146.3
126.1
168.7
190.5
137.6
156.2
124.7
140.1
118.4
164.2
185.6
134.5
155.6
119.9
141.3
121.9
163.1
184.4
136.7
157.4
122.5
137.5
115.6
162.0
183.0
138.2
159.0
123.9
137.7
112.6
165.8
188.2
140.4
160.7
126.3
138.9
111.6
169.3
192.7
143.1
163.3
129.1
139.7
112.8
169.7
192.9
145.1
165.4
131.0
139.6
112.6
169.8
192.0
147.4
167.8
133.2
143.8
115.0
176.0
200.9
150.6
170.6
136.8
146.0
116.1
179.3
205.4
152.8
172.9
138.8
146.5
117.1
179.3
204.5
155.1
174.6
141.6
146.2
118.6
176.9
201.2
156.4
175.8
143.0
148.2
120.9
178.8
203.8
157.2
176.3
144.0
151.7
123.4
183.4
210.1
157.8
176.3
145.0
.51
.69
4.40
.75
82.4
142.7
131.1
112.1
74.9
129.7
122.9
111.7
81.7
144.8
124.6
112.8
75.1
136.5
117.0
115.7
75.2
127.3
114.4
114.0
79.8
125.3
112.2
117.7
84.4
125.6
112.5
122.5
82.9
124.6
112.6
121.7
82.5
139.9
113.9
121.2
80.9
141.2
114.7
125.0
78.7
140.5
116.3
126.5
83.7
142.7
117.4
127.4
87.7
144.8
119.4
130.0
145.2
123.0
8
9
10
11
Mining
Metal
Coal
Oil and gas extraction
Stone and earth minerals
12
13
14
15
16
Nondurable manufactures
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
20
21
22
23
26
8.75 151.1
.67 118.0
2.68 124.5
3 31
3.21 150.8
152.8
109.9
122.2
154.4
104.7
125.8
153.0
108.5
130.7
152.0
113.4
131.9
153.7
114.8
136.6
155.6
112.9
139.6
157.7
120.0
141.8
159.9
112.9
146.7
159.3
117.1
147.4
158.2
112.7
148.7
157.6
109.1
149.6
147.5
151.1
158.8
155.6
156.3
157.0
161.5
163.0
165.1
168.6
170.4
172.1
172.5
175.0
17
18
19
20
21
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products
Leather and products
27
28
29
30
31
4.72
7.74
1.79
2.24
.86
144.1
196.1
121.8
254.7
60.9
142.8
195.9
118.7
249.7
56.0
141.3
197.6
113.5
256.2
59.5
144.0
202.3
111.7
264.0
61.7
145.9
205.7
114.8
272.0
59.4
145.7
208.5
120.6
283.0
58.7
145.2
211.0
123.8
288.0
59.6
147.4
214.7
123.0
293.8
60.1
152.0 157.8
218.3 220.3
124.3 123.2
2%. 1 306.9
64.4
62.3
161.7
224.1
125.1
310.9
64.2
162.7
228.1
123.6
313.2
64.8
163.1
228.3
124.2
315.4
66.0
119.8
22
23
24
25
Durable manufactures
Ordnance, private and government
Lumber and products
Furniture and fixtures
Clay, glass, stone products
19.91
24
25
32
3.64
1.64
1.37
2.74
86.9
112.6
151.9
128.2
92.5
121.4
153.7
125.4
93.5
130.0
150.0
128.0
93.3
130.2
154.0
131.8
91.9
128.7
161.0
135.6
93.2
132.1
167.7
138.3
92.6
135.8
169.6
139.2
93.3
137.4
173.1
141.7
95.2
141.3
175.2
145.8
96.8
141.6
179.0
147.9
98.0
142.3
180.7
151.7
98.8
141.7
181.5
151.9
99.5
142.0
180.2
153.9
26
27
28
29
30
Primary metals
Iron and steel
Fabricated metal products
Nonelectrical machinery
Electrical machinery
33
331.2
34
35
36
6.57
4.21
5.93
9.15
8.05
75.3
61.7
114.8
149.0
169.3
63.5
46.6
107.3
139.2
165.5
73.1
59.0
107.6
138.0
169.5
77.9
64.3
110.3
136.2
168.9
81.2
66.9
113.9
138.6
173.8
83.1
68.5
115.3
143.1
177.2
84.9
69.5
115.5
146.1
180.1
84.8
69.7
118.5
149.5
182.4
85.5
71.8
122.7
154.2
188.3
87.5
75.1
126.0
157.3
189.2
90.6
78.2
127.4
158.3
195.8
95.1
84.0
127.2
159.5
198.7
92.0
80.5
129.3
162.9
200.6
129.7
163.0
203.7
37
371
9.27
4.50
104.9
109.8
103.7
108.8
106.3
113.9
109.6
123.0
110.1
123.2
111.4
125.5
113.8
130.4
116.6
136.2
119.7
142.3
121.1
144.3
124.7
150.9
125.5
150.9
125.8
152.5
128.2
157.1
372-9
38
39
4.77
2.11
1.51
100.4
161.9
137.0
98.9
155.2
128.2
99.1
154.5
131.3
97.0
153.4
133.9
97.7
154.0
136.9
98.1
155.1
145.0
98.1
156.0
149.0
98.1
156.1
151.0
98.5
159.3
153.7
99.2
161.6
153.1
100.0
163.6
151.7
101.6
164.5
150.4
100.5
165.1
151.6
101.0
167.2
152.5
31 Transportation equipment
32 Motor vehicles and parts
33 Aerospace and miscellaneous
transportation equipment...
34 Instruments
35 Miscellaneous manufactures
10
11.12
13
14
Gross value (billions of 1972 dollars, annual rates)
MAJOR MARKET
36 Products, total
507.4
579.6
572.9
578.1
578.4
584.1
592.6
601.8
610.5
620.5
626.6
637.0
639.1
643.1
37 Final
38 Consumer goods .
39 Equipment
40 Intermediate
390.9
277.5
113.4
116.6
451.1
308.0
143.1
128.5
445.8
306.8
138.9
127.1
448.3
310.9
137.4
129.8
447.3
312.0
135.3
131.1
451.3
313.8
137.5
132.8
457.7
318.8
138.9
134.9
465.6
325.6
140.0
136.2
471.8
330.4
141.4
138.7
478.2
333.7
144.5
142.3
481.8
336.7
145.1
144.8
489.9
341.6
148.4
147.1
491.3
340.3
151.0
147.8
493.4
341.7
151.6
149.8
1. 1972 dollar value.
163.2
100.7
91.1
A48
2.14
Domestic Nonfinancial Statistics • January 1984
HOUSING A N D CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1982
Item
1980
1981
1983
1982
Mar.
Dec.
Apr.
May
June
July
Aug.'
Sept.'
Oct.'
Nov.
Private residential real estate activity (thousands of units)
NEW UNITS
1 Permits authorized
2 1-family
3 2-or-more-family
1,191
710
480
986
564
421
1,001
546
454
1,326
753
573
1,467
859
608
1,536
841
695
1,635
940
695
1,761
1,013
748
1,782
920
862
1,652
874
778
1,506
837
669
1,630
880
750
1,650
906
744
4 Started
5 1-family
6 2-or-more-family
1,292
852
440
1,084
705
379
1,062
663
400
1,280
842
438
1,605
1,008
597
1,506
1,001
505
1,807
1,183
624
1,736
1,127
609
1,804
1,032
772
1,904
1,135
769
1,664
1,031
633
1,650
1,010
640
1,756
1,065
691
896
515
382
682
382
301
720
400
320
730
411
319
828
472
356
859
489
370
900
518
382
933
532
400
963
537
425
977
542
435
991
544
446
995
542
453
1,502
957
545
1,266
818
447
1,006
631
374
1,035
647
388
1,147
788
359
1,164
803
361
1,353
851
502
1,386
959
427
1,432
1,000
432
1,729
1,050
679
1,470
970
500
1,588
1,036
552
13 Mobile homes shipped
222
241
239
243
276
291
298
308
299
305
302
291
t
1
\
Merchant builder activity in 1-family units
14 Number sold
15 Number for sale, end of period1
545
342
436
278
413
255
529
251
611
262
635
266
665
273
658
284
594'
289'
544
296
597
299
635
301
638
308
64.7
68.8
69.3
71.7
72.5
74.7
74.5
75.8
75.2
76.8
80.8
75.7
75.9
76.4
83.1
83.8
86.7
86.2
87.6
88.8
90.9
89.2
91.3
97.0
88.7
92.1
2,974
2,418
1,991
2,260
2,710
2,730
2,900
2,940
2,790
2,710
2,720
2,610
2,630
62.1
72.7
66.1
78.0
67.7
80.4
67.8
80.6
68.9
81.1
68.8
81.3
69.2
81.7
71.4
84.7
71.8
84.2
71.5
84.7
69.9
82.8
69.8
83.0
70.3
83.2
7 Under construction, end of period1
8
1-family
9 2-or-more-family
10 Completed
11 1-family
12 2-or-more-family
Price (thousands of dollars)2
Median
16 Units sold
Average
17 Units sold
n.a.
EXISTING UNITS (1-family)
18 Number sold
Price of units sold (thousands of dollars)2
19 Median
20 Average
Value of new construction3 (millions of dollars)
CONSTRUCTION
21 Total put in place
230,712 239,418 232,048 240,207 241,908 247,360 254,763 264,321 274,205' 281,997 285,384 271,914 271,868
22 Private
23 Residential
24 Nonresidential, total
Buildings
25
Industrial
26
Commercial
27
Other
28
Public utilities and other
175,700 186,069 180,979 190,768 194,865 199,462 206,029 214,729 222,759' 228,529 232,561 223,015 223,229
87,262 86,567 74,809 86,018 96,127 101,961 107,494 113,524 122,297' 127,136 129,142 121,736 113,271
88,438 99,502 106,170 104,750 98,738 97,501 98,535 101,205 100,462' 101,393 103,419 101,279 104,958
29 Public
30 Military
31 Highway
32 Conservation and development
33 Other
13,839
29,940
8,654
36,005
17,031
34,243
9,543
38,685
17,346
37,281
10,507
41,036
15,631
36,934
11,784
40,401
14,263
35,469
11,598
37,408
13,223
33,619
10,770
39,889
13,047 13,136
33,291 35,898
11,237 10,974'
40,960 41,197
12,227
35,871
11,250
41,114'
14,227
36,277
12,038
38,851
13,166
36,901
12,564
40,788
10,532
36,118
12,279
42,350
55,011
53,346
1,966
13.599
5,300
32,481
51,068
2,205
13,521
5,029
30,313
49,439
2,432
13,048
4,625
29,334
47,043
2,541
47,897, 48,734 49,592
1,894
2,784, 2,255
12,900 13,044 12,925
4,548 4,853
5,023
27,1901 28,887 29,920
51,446'
2,655'
14,091
5,608'
29,092'
53,469
2,258
15,906
5,210
30,095
52,823
2,705
15,896
5,048
29,174
48,899 48,639
2,515
2,619
14,6441 14,001
4,258,
3,942
27,482; 28,077
1,880
13,770
5,089
34,272
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.
11,866
4,894
27,742
11,533
38,019
12,374
43,032
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 16,000jurisdictions beginning
with 1978.
Prices
2.15
A49
CONSUMER A N D PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Item
Change from 3 months earlier
(at annual rate)
1983
Nov.
Index
level
Nov.
1983
1983
(1967
= 100)'
1983
1982
1982
Nov.
Change from 1 month earlier
Mar.
Dec.
June
Sept.
Aug.
July
Sept.
Nov.
Oct.
CONSUMER PRICES2
1
All items
? Food
3 Energy items
4 All items less food and energy
Commodities
Services
6
4.6
3.2
.5
.4
5.4
5.3
.4
.4
.5
.4
.3
303.1
3.4
2.1
5.2
5.7
4.8
2.1
-.6
4.3
5.2
3.5
.8
10.2
-.3
5.4
-4.8
2.8
-25.1
4.4
5.7
3.7
1.7
21.0
3.9
2.9
4.6
1.7
7.1
6.2
7.1
5.3
-.1
.3
.6
.7
.4
.2
.7
.5
.5
.4
.3
.7
.5
.6
.4
.5
-.4
.5
.6
.5
.1
.0
.4
.3
.5
292.5
419.9
293.2
248.9
344.9
3.7
1.9
1.4
5.1
4.0
.7
1.7
-8.8
2.0
2.3
5.2
.8
7.0
7.9
3.6
-4.7
4.1
-35.5
-2.0
2.0
3.0
.0
11.4
3.1
1.7
2.5
1.5
3.7
2.9
2.5
.1
-.7
.2'
.3
.2
.4
.5'
.4'
.2
.7
.2
.7
.3
.1
-.3
.3
1.1
-.1
.0
.3
-.2
-1.0
-1.0
.5
.0
286.8
261.8
778.6
242.1
290.3
.3
.6
1.5
2.5
1.5
1.0
-4.7
.8
3.2
2.9
5.3
4.0
.3'
.4'
.5'
.3'
.5
.3
.4
.2
.2
.3
320.1
297.2
-.8
4.9
-8.9
6.6
-5.8
14.7
1.3
6.4
-8.0
18.1
-9.2
-16.2
.8
-5.1
61.9
5.9
-1.5
20.2
-2.6
-.6'
2.5'
4.(K
-.1'
.3'
.2
.3
1.8
.2
-1.0
-.3
.0
.2
1.7
252.0
781.8
260.3
PRODUCER PRICES
7
8
9
10
11
Finished goods
Consumer foods
Consumer energy
Other consumer goods
Capital equipment
V Intermediate materials3
Excluding energy
13
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.
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds,
SOURCE. Bureau of Labor Statistics.
A50
2.16
Domestic Nonfinancial Statistics • January 1984
GROSS NATIONAL PRODUCT A N D INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1982
Account
1980
1981
1983
1982
Q3
Q4
QL
Q2
Q3
GROSS NATIONAL PRODUCT
2,631.7
2,954.1
3,073.0
3,090.7
3,109.6
3,171.5
3,272.0
3,362.2
1,668.1
214.7
668.8
784.5
1,857.2
236.1
733.9
887.1
1,991.9
244.5
761.0
986.4
2,008.8
243.4
766.6
998.9
2,046.9
252.1
773.0
1,021.8
2,073.0
258.5
777.1
1,037.4
2,147.0
277.7
799.6
1,069.7
2,181.1
282.8
814.8
1,083.5
6 Gross private domestic investment
7 Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures
12
Nonfarm
401.9
411.7
308.8
110.9
197.8
102.9
98.1
474.9
456.5
352.2
133.4
218.8
104.3
99.8
414.5
439.1
348.3
141.9
206.4
90.8
86.0
425.3
430.2
342.3
140.0
202.2
87.9
83.4
377.4
433.8
337.0
138.6
198.4
96.8
91.2
404.1
443.5
332.1
132.9
199.3
111.3
106.7
450.1
464.6
336.3
127.4
208.8
128.4
123.3
501.1
492.5
351.0
130.9
220.2
141.5
136.3
13.
14
-9.8
-4.5
18.4
10.9
-24.5
-23.1
-4.9
-2.3
-56.4
-53.7
-39.4
-39.0
-14.5
-10.3
8.5
18.4
15 Net exports of goods and services
16 Exports
17 Imports
24.0
338.8
314.8
26.3
368.8
342.5
17.4
347.6
330.2
.9
346.0
345.0
5.6
321.6
316.1
17.0
326.9
309.9
-8.5
327.1
335.6
-18.3
341.1
359.4
18 Government purchases of goods and services
19 Federal
20 State and local
537.8
197.0
340.8
595.7
229.2
366.5
649.2
258.7
390.5
655.7
261.7
394.0
679.7
279.2
400.5
677.4
273.5
404.0
683.4
273.7
409.7
698.3
278.1
420.2
2,641.5
1,140.6
477.8
662.7
1,225.2
266.0
2,935.6
1,291.8
528.0
763.9
1,374.2
288.0
3,097.5
1,280.8
500.8
780.1
1,511.2
281.0
3,095.6
1,286.7
518.4
768.3
1,527.2
276.9
3,165.9
1,264.8
474.0
790.8
1,560.5
284.3
3,210.9
1,292.2
482.7
809.5
1,588.4
290.9
3,286.6
1,346.8
536.8
810.0
1,623.4
301.9
3,353.7
1.388.9
568.9
820.0
1,651.0
322.3
-9.8
-4.1
-5.7
18.4
3.6
14.8
-24.5
-15.5
-9.1
-4.9
6.4
-11.3
-56.4
-45.0
-11.4
-39.4
-38.2
-1.2
-14.5
-8.9
-5.7
8.5
13.1
-4.5
1,475.0
1,513.8
1,485.4
1,485.7
1,480.7
1,490.1
1,525.1
1,553.4
31 Total
2,116.6
2,373.0
2,450.4
2,458.9
2,474.0
2,528.5
2,612.8
2,686.9
32 Compensation of employees
33 Wages and salaries
34
Government and government enterprises
35
Other
36 Supplement to wages and salaries
37
Employer contributions for social insurance
Other labor income
38
1,599.6
1,356.6
260.3
1,096.4
243.0
115.0
128.0
1,769.2
1,493.2
284.4
1,208.8
276.0
132.5
143.5
1,865.7
1,568.1
306.0
1,262.1
297.6
140.9
156.6
1,879.5
1,579.8
307.7
1,272.1
299.7
141.5
158.2
1,889.0
1,586.0
314.5
1,271.5
302.9
142.5
160.4
1,923.7
1,610.6
319.2
1,291.5
313.1
148.8
164.3
1,968.7
1,647.1
323.3
1,323.8
321.6
151.5
170.1
2,011.8
1,681.5
328.4
1,353.1
330.3
153.9
176.4
117.4
95.6
21.8
120.2
89.7
30.5
109.0
87.4
21.5
103.6
87.8
15.8
116.2
90.2
26.0
120.6
98.4
22.2
127.2
106.2
21.0
126.7
111.2
15.5
1 Total
2
3
4
5
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
Change in business inventories
Nonfarm
By major type of product
21 Final sales, total
22 Goods
Durable
23
24
Nondurable
25 Services
26 Structures
27 Change in business inventories
28 Durable goods
29 Nondurable goods
30 MEMO: Total GNP in 1972 dollars
NATIONAL INCOME
39 Proprietors' income1
40 Business
and professional1
41 Farm1
42 Rental income of persons2
31.5
41.4
49.9
50.9
52.3
54.1
54.8
53.9
43 Corporate profits1 3
44 Profits before tax
45 Inventory valuation adjustment
46 Capital consumption adjustment
175.4
234.6
-42.9
-16.3
192.3
227.0
-23.6
-11.0
164.8
174.2
-8.4
-1.1
168.5
177.3
-9.0
.1
161.9
167.5
-10.3
4.7
181.8
169.7
-1.7
13.9
218.2
203.3
-10.6
25.6
248.4
229.1
-18.3
37.6
47 Net interest
192.6
249.9
261.1
256.4
254.7
248.3
243.8
246.1
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).
National Income Accounts
2.17
A51
PERSONAL INCOME A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1983
1982
Account
1980
1982
1981
Q3
Q4
Ql
Q2
Q3
PERSONAL INCOME AND SAVING
Total personal income
1
? Wage and salary disbursements
Commodity-producing industries
4
Distributive industries
Service industries
Government and government enterprises
6
7
8
9
10
11
17
N
14
15
16
Business
and professional1
Farm1
Rental income of persons2
Transfer payments
Old-age survivors, disability, and health insurance benefits
LESS: Personal contributions for social insurance
17
EQUALS: Personal income
18
19
20
Other labor income
LESS: Personal tax and nontax payments
EQUALS: Disposable personal income
2,165.3
2,435.0
2,578.6
2,591.3
2,632.0
2,657.7
2,713.6
2,761.9
1,356.7
468.1
354.6
330.7
297.6
260.3
1,493.2
509.5
385.3
361.6
337.7
284.4
1,568.1
509.2
383.8
378.8
374.1
306.0
1,579.8
508.9
384.8
381.9
381.2
307.7
1,586.0
499.5
377.4
383.5
388.5
314.5
1,610.7
508.6
385.4
386.4
396.4
319.2
1,648.4
522.2
397.4
394.3
407.3
324.6
1,681.9
537.8
409.2
398.9
416.4
328.8
128.0
117.4
95.6
21.8
31.5
56.8
266.0
297.6
154.2
143.5
120.2
89.7
30.5
41.4
62.8
341.3
337.2
182.0
156.6
109.0
87.4
21.5
49.9
66.4
366.2
374.6
204.5
158.2
103.6
87.8
15.8
50.9
66.4
364.8
380.4
209.3
160.4
116.2
90.2
26.0
52.3
67.9
363.1
399.0
216.5
164.3
120.6
98.4
22.2
54.1
68.8
357.2
398.5
217.4
170.1
127.2
106.2
21.0
54.8
69.3
357.1
405.3
221.1
176.4
126.7
111.2
15.5
53.9
70.9
369.9
402.6
223.8
88.7
104.6
112.0
112.7
112.9
116.5
118.6
120.5
2,165.3
2,435.0
2,578.6
2,591.3
2,632.0
2,657.7
2,713.6
2,761.9
336.5
387.4
402.1
399.8
404.1
401.8
412.6
400.1
1,828.8
2,047.6
2,176.5
2,191.5
2,227.8
2,255.9
2,301.0
2,361.7
21
LESS: Personal outlays
1,718.7
1,912.4
2,051.1
2,068.4
2,107.0
2,134.2
2,209.5
2,245.9
22
EQUALS: Personal saving
110.2
135.3
125.4
123.0
120.8
121.7
91.5
115.8
6,478.0
4,092.3
4,487.0
6.0
6,584.1
4,161.5
4,587.0
6.6
6,399.3
4,179.8
4,567.0
5.8
6,393.2
4,178.4
4,558.0
5.6
6,355.2
4,204.5
4,576.0
5.4
6,381.5
4,225.7
4,599.0
5.4
6,518.5
4,318.8
4,629.0
4.0
6,621.5
4,330.8
4,690.0
4.9
MEMO:
?3
74
25
26
Per capita (1972 dollars)
Gross national product
Personal consumption expenditures
Disposable personal income
Saving rate (percent)
GROSS SAVING
27
78
79
30
31
Gross saving
405.9
483.8
405.8
397.9
351.3
398.5
420.6
455.4
Gross private saving
Personal saving
Undistributed corporate profits'
Corporate inventory valuation adjustment
435.4
110.2
32.0
-42.9
509.6
135.3
44.8
-23.6
521.6
125.4
37.0
-8.4
524.9
123.0
38.9
-9.0
526.6
120.8
37.5
-10.3
541.5
121.7
48.9
-1.7
535.0
91.5
70.1
-10.6
587.2
115.8
89.7
-18.3
179.3
113.8
.0
202.9
126.6
.0
222.0
137.2
.0
224.5
138.5
.0
227.7
140.5
.0
228.3
142.6
.0
229.8
143.5
.0
233.1
148.6
.0
-30.7
-61.2
30.6
-26.9
-62.2
35.3
-115.8
-147.1
31.3
-127.0
-158.3
31.3
-175.3
-208.2
32.9
-142.9
-183.3
40.4
-114.4
-166.1
51.7
-131.8
-187.3
55.5
.0
.0
.0
.0
.0
.0
397.4
417.1
457.9
Capital consumption allowances
37
33 Noncorporate
34 Wage accruals less disbursements
35 Government surplus, or deficit ( - ) , national income and
product accounts
36
37
38
State and local
Capital grants received by the United States, net
1.2
1.1
478.9
39
Gross investment
408.2
406.2
400.5
355.5
40
41
Gross private domestic
Net foreign
401.9
6.3
474.9
4.0
414.5
-8.3
425.3
-24.8
377.4
-21.9
404.1
-6.7
450.1
-33.0
501.1
-43.2
42
Statistical discrepancy
2.3
-4.9
.5
2.5
4.2
-1.2
-3.5
2.5
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
SOURCE. Survey of Current Business (Department of Commerce).
A52
3.10
International Statistics • January 1984
U.S. INTERNATIONAL TRANSACTIONS
Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted. 1
1982
Item credits or debits
1983
1982
1981
1980
Q3
Q4
Q3P
Q2
Ql
421
4,592
-11,211
-6,596
-8,143
-6,621
-5,546
-3,587
-3,395
-9,655
-8,898
-11,976
-13,996
-25,544
224,237
-249,781
-2,286
29,570
5,738
-28,067
237,019
-265,086
-1,355
33,484
7,462
-36,389
211,217
-247,606
179
27,304
5,729
-13,078
52,241
-65,319
54
6,821
1,349
-11,354
48,344
-59,698
-26
6,008
1,182
-8,810
49,506
-58,316
516
5,089
1,179
-14,661
48,913
-63,574
117
5,700
1,012
-18,169
50,585
-68,754
-21
6,928
1,347
-2,347
-4,709
-2,382
-4,549
-2,621
-5,413
-656
-1,086
-661
-1,770
-608
-953
-636
-1,187
-656
-1,405
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )
-5,140
-5,078
-5,732
-2,502
-934
-1,053
-1,162
-1,188
12 Change in U.S. official reserve assets (increase, - )
13 Gold
14 Special drawing rights (SDRs)
15 Reserve position in International Monetary Fund
16 Foreign currencies
-8,155
0
-16
-1,667
-6,472
-5,175
0
-1,823
-2,491
-861
-4,965
0
-1,371
-2,552
-1,041
-794
0
-434
-459
99
-1,949
0
-297
-732
-920
-787
0
-98
-2,139
1,450
16
0
-303
-212
531
529
0
-209
-88
826
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, 3net
21 U.S. direct investments abroad, net
-72,757
-46,838
-3,174
-3,524
-19,221
-100,348
-83,851
-1,181
-5,636
-9,680
-107,348
-109,346
6,976
-7,986
3,008
-22,803
-20,631
998
-3,331
161
-16,670
-17,511
2,337
-3,527
2,031
-19,859
-15,935
-2,374
-1,808
258
488
5,166
-440
-3,222
-1,016
-5,770
-498
n.a.
-1,122
-4,150
23
24
25
26
27
22 Change in foreign official assets in the United States
(increase, +)
U.S. Treasury securities
Other U.S. government obligations
Other U.S. government liabilities4
Other U.S. liabilities reported
by U.S. banks
Other foreign official assets5
15,566
9,708
2,187
685
-159
3,145
5,430
4,983
1,289
-28
-3,479
2,665
3,172
5,759
-670
504
-2,054
-367
2,642
4,834
-71
-160
-1,911
-50
1,661
4,346
-556
130
-1,717
-542
49
3,008
-371
-270
-1,939
-379
1,973
1,955
-170
403
611
-826
-3,235
-692
-363
148
-1,870
-458
28 Change in foreign3 private assets in the United States
(increase, +)
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, net3
39,356
10,743
6,845
2,645
5,457
13,666
75,248
42,154
942
2,982
7,171
21,998
84,693
64,263
-3,104
7,004
6,141
10,390
14,971
10,977
-425
1,364
420
2,635
9,856
2,823
20
2,257
1,975
2,781
16,404
10,588
-2,136
2,912
2,986
2,054
8,984
919
134
3,072
2,628
2,231
21,722
16,344
n.a.
1,103
1,867
2,408
34 Allocation of SDRs
35 Discrepancy
1,152
29,556
1,093
24,238
0
41,390
0
15,082
-1,190
0
14,657
1,042
0
8,833
-212
0
-644
792
0
-82
-1,355
29,556
24,238
41,390
16,272
13,615
9,045
-1,436
1,273
-8.155
-5,175
-4,965
-794
-1,950'
-787
16
529
14,881
5,458
2,668
2,802
1,531
319
1,570
-3,383
12,769
13,581
7,420
368
-1,162
-1,397
-3,433
-2,151
756
680
644
267
158
42
30
49
1 Balance on current account
3
4
5
6
7
8
9
10
37
Merchandise trade balance2
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net3
Other service transactions, net
Remittances, pensions, and other transfers
U.S. government grants (excluding military)
Statistical discrepancy in recorded data before seasonal
adjustment
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 no longer calculated for lines 12 through 41.
2. Data are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing; military
exports are excluded from merchandise data and are included in line 6.
3. Includes reinvested earnings of incorporated affiliates.
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 Economic Analysis, Survey of Current Business
(Department of Commerce).
Trade
3.11
and
Reserve
and
Official
Assets
Sept.
Oct.
A53
U.S. FOREIGN TRADE
Millions of dollars; monthly data are seasonally adjusted.
1983
1980
Item
1981
1982
May
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments
220,626
233,677
212,193
June
15,566
Aug.
July
16,629
17,008
16,630
17,387
Dec.
16,951
16,848
2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded
warehouses
244,871
261,305
243,952
21,514
21,024
21,950
22,782
22,175
24,763
23,179
3 Trade balance
-24,245
-27,628
-31,759
-5,948
-4,016
-5,321
-6,152
-4,788
-7,812
-6,331
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.
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
the export side, the largest adjustments are: (1) the addition of exports to Canada
3.12
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
1983
Type
1980
1981
1982
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1 Total
26,756
30,075
33,958
33,876
33,373
32,624
33,066
33,273
33,655
33,747
2 Gold stock, including
Exchange Stabilization Fund1
11,160
11,151
11,148
11,131
11,131
11,128
11,128
11,126
11,123
11,121
2,610
4,095
5,250
5,478
5,496
5,543
5,628
5,641
5,735
5,025
2,852
5,055
7,348
9,413
9,475
9,296
9,399
9,554
9,883
11,312
10,134
9,774
10,212
7,854
7,271
6,657
6,911
6,952
6,914
6,289
3 Special drawing rights2 3
4 Reserve position
in International Monetary Fund2
5 Foreign currencies4'5
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.
5. Includes U.S. government securities held under repurchase agreement
against receipt of foreign currencies in 1979 and 1980.
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.
3.13
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1983
Assets
1980
1981
1982
June
1 Deposits
Assets held in custody
2 U.S. Treasury securities1
3 Earmarked gold2
Aug.
Sept.
Oct.
Nov.
Dec.
411
505
328
279
369
248
297
339
360
190
102,417
14,965
104,680
14,804
112,544
14,716
114,499
14,724
118,105
14,727
113,476
14,693
113,498
14,621
116,327
14,550
116,398
14,475
117,670
14,414
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.
July
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.
A54
3.14
International Statistics • January 1984
FOREIGN BRANCHES OF U.S. BANKS
Balance Sheet Data
Millions of dollars, end of period
1983
Asset account
1980
Apr.
May
June
July
Aug.
Sept.
Oct.P
All foreign countries
1 Total, all currencies
2 Claims on United States
3 Parent bank
4 Other
5 Claims on foreigners
6 Other branches of parent bank
7 Banks
a Public borrowers
y Nonbank foreigners
10 Other assets
n Total payable in U.S. dollars
12 Claims on United States
13 Parent bank
14 Other
15 Claims on foreigners
16 Other branches of parent bank
1/ Banks
18 Public borrowers
iy Nonbank foreigners
20 Other assets
401,135
462,847
469,432
453,296
452,253
465,772
455,802
452,320
460,236
458,871
28,460
20,202
8,258
63,743
43,267
20,476
91,768
61,629
30,139
91,262
61,792
29,470
91,908
62,596
29,312
97,810^
65,826
31,984'
96,915
67,683
29,232
99,207
66,860
32,347
101,316
65,533
35,783
102,474
66,919
35,555
354,960
77,019
146,448
28,033
103,460
378,954
87,821
150,763
28,197
112,173
358,258
91,143
133,640
24,090
109,385
344,069
84,839
127,365
25,114
106,751
342,298
86,436
124,055
25,547
106,260
349,819'
88,352
130,285
25,370
105,812'
340,994
84,869
123,539
25,876
106,710
335,040
84,563
119,167'
25,185
106,125'
340,430
89,279
120,202
24,982
105,967
337,849
87,533
117,641
24,979
107,6%
17,715
20,150
19,406
17,965
18,047
18,143
17,893
18,073
18,490
18,548
291,798
350,735
361,712
344,618
343,851
357,405
350,459
348,335
354,570
351,487
27,191
19,896
7,295
62,142
42,721
19,421
90,048
60,973
29,075
88,985
61,156
27,829
89,552
61,797
27,755
95,533'
64,497
31,036'
94,501
66,255
28,246
96,718
65,434
31,284
98,476
63,691
34,785
99,915
65,390
34,525
255,391
58,541
117,342
23,491
56,017
276,937
69,398
122,110
22,877
62,552
259,646
73,512
106,338
18,374
61,422
245,097
66,337
98,678
18,941
61,141
243,896
67,787
96,071
19,001
61,037
251,259'
69,496
102,862
18,681
60,22c
245,188
67,160
97,197
19,108
61,723
241,343
66,645
93,832'
18,880
61,986'
245,550
71,248
95,138
18,455
60,709
241,248
69,314
92,059
18,531
61,344
9,216
11,656
12,018
10,536
10,403
10,613
10,770
10,274
10,544
10,324
United Kingdom
21 Total, all currencies
22 Claims on United States
23 Parent bank
24 Other
25 Claims on foreigners
26 Other branches of parent bank
27 Banks
28 Public borrowers
29 Nonbank foreigners
30 Other assets
31 Total payable in U.S. dollars
32 Claims on United States
ii Parent bank
34 Other
35 Claims on foreigners
36 Other branches of parent bank
37 Banks
38 Public borrowers
39 Nonbank foreigners
40 Other assets
144,717
157,229
161,067
152,408
151,821
155,631
153,209
154,865
156,048
156,803
7,509
5,275
2,234
11,823
7,885
3,938
27,354
23,017
4,337
25,139
20,657
4,482
24,847
20,456
4,391
26,279
21,384
4,895
26,012
20,849
5,163
29,722
22,169
7,553
28,935
20,816
8,119
30,853
22,794
8,059
131,142
34,760
58,741
6,688
30,953
138,888
41,367
56,315
7,490
33,716
127,734
37,000
50,767
6,240
33,727
121,727
32,973
48,301
6,591
33,862
121,187
33,361
47,623
6,599
33,604
123,835
35,787
48,328
6,570
33,150
121,757
35,632
46,643
6,440
33,042
119,672
35,555
44,303
6,342
33,472
121,530
36,382
45,451
6,274
33,423
120,660
36,556
43,888
6,280
33,936
6,066
6,518
5,979
5,542
5,787
5,517
5,440
5,471
5,583
5,290
99,699
115,188
123,740
113,170
112,585
118,023
116,526
119,377
121,238
121,817
7,116
5,229
1,887
11,246
7,721
3,525
26,761
22,756
4,005
24,374
20,354
4,020
24,044
20,092
3,952
25,536
21,017
4,519
25,180
20,434
4,746
28,905
21,720
7,185
27,828
20,036
7,792
30,095
22,371
7,724
89,723
28,268
42,073
4,911
14,471
99,850
35,439
40,703
5,595
18,113
92,228
31,648
36,717
4,329
19,534
84,981
27,131
33,228
4,522
20,100
84,779
27,579
32,801
4,497
19,902
88,587
30,025
34,417
4,547
19,598
87,450
30,122
33,159
4,420
19,749
86,868
30,053
31,718
4,410
20,687
89,539
31,409
33,237
4,329
20,564
88,253
31,414
31,796
4,346
20,697
2,860
4,092
4,751
3,815
3,762
3,900
3,8%
3,604
3,871
3,469
Bahamas and Caymans
41 Total, all currencies
42 Claims on United States
43 Parent bank
44 Other
45 Claims on foreigners
46 Other branches of parent bank
47 Banks
48 Public borrowers
49 Nonbank foreigners
50 Other assets
51 Total payable in U.S. dollars
123,837
149,108
145,156
142,126
141,021
146,792
142,384
139,422
143,123
141,288
17,751
12,631
5,120
46,546
31,643
14,903
59,403
34,653
24,750
61,417
37,971
23,446
62,546
39,031
23,515
66,471'
40,497
25,974'
65,984
42,898
23,086
63,646
40,031
23,615
66,522
40,127
26,395
66,230
40,082
26,148
101,926
13,342
54,861
12,577
21,146
98,057
12,951
55,151
10,010
19,945
81,450
18,720
42,699
6,413
13,618
77,034
18,295
39,682
6,388
12,669
74,817
18,537
37,589
6,170
12,521
76,719'
16,658
41,707
5,935
12,4^
72,683
15,565
37,384
6,538
13,196
72,021
15,344
37,360
6,404
12,913
72,826
16,764
36,634
6,461
12,967
71,268
15,807
35,974
6,527
12,960
4,160
4,505
4,303
3,675
3,658
3,602
3,717
3,755
3,775
3,790
117,654
143,743
139,605
136,192
135,192
140,702
136,253
132,956
136,826
134,667
Overseas Branches
3.14
A55
Continued
1983
Liability account
1980
1981
1982
Apr.
May
June
July
Aug.
Sept.
Oct.''
All foreign countries
52 Total, all currencies
53 To United States
54 Parent bank
55 Other banks in United States
56 Nonbanks
57 To foreigners
58 Other branches of parent bank
59 Banks
60 Official institutions
61 Nonbank foreigners
62 Other liabilities
63 Total payable in U.S. dollars
64 To United States
65 Parent bank
66 Other banks in United States
67 Nonbanks
68 To foreigners
69 Other branches of parent bank
70 Banks
71 Official institutions
72 Nonbank foreigners
73 Other liabilities
401,135
462,847
469,432
453,296
452,253
465,772
455,802
452,320
460,236
458,871
91,079
39,286
14,473
37,275
137,767
56,344
19,197
62,226
178,918
75,561
33,368
69,989
184,071
81,104
32,687
70,280
183,851
80,844
31,815
71,192
191,485
84,482
33,672
73,331
187,665
81,704
31,490
74,471
183,591'
77,283'
29,880
76,428
182,609
78,013
30,941
73,655
185,567
85,034
27,066
73,467
295,411
75,773
132,116
32,473
55,049
305,630
86,396
124,906
25,997
68,331
270,678
90,148
96,739
19,614
64,177
251,2%
84,146
86,950
18,384
61,816
250,813
84,903
84,637
17,199
64,074
256,102
86,546
87,153
18,621
63,782
249,823
83,911
84,649
18,287
62,976
250,506'
82,903'
85,408'
17,766
64,429'
259,486
88,064
86,606
20,513
64,303
254,573
85,566
84,542
19,403
65,062
14,690
19,450
19,836
17,929
17,589
18,185
18,314
18,223
18,141
18,731
303,281
364,447
379,003
363,592
363,354
376,055
368,499
365,583
373,035
369,912
88,157
37,528
14,203
36,426
134,700
54,492
18,883
61,325
175,431
73,235
33,003
69,193
180,650
79,022
32,226
69,402
180,075
78,578
31,222
70,275
187,987
82,285
33,242
72,460
184,167
79,448
31,116
73,603
179,898'
74,969'
29,334
75,595
178,834
75,728
30,374
72,732
181,669
82,637
26,548
72,484
206,883
58,172
87,497
24,697
36,517
217,602
69,299
79,594
20,288
48,421
192,348
72,878
57,355
15,055
47,060
173,556
66,186
48,428
13,801
45,141
174,176
66,664
47,424
12,641
47,447
178,877
68,356
49,916
13,912
46,693
174,733
67,228
48,062
13,517
45,926
175,832'
65,842'
49,578'
12,999
47,413'
184,384
70,658
50,918
15,400
47,408
178,825
68,064
48,264
14,630
47,867
8,241
12,145
11,224
9,386
9,103
9,191
9,599
9,853
9,817
9,418
United Kingdom
144,717
157,229
161,067
152,408
151,821
155,631
153,209
154,865
156,048
156,803
75 To United States
76 Parent bank
77 Other banks in United States
78 Nonbanks
21,785
4,225
5,716
11,844
38,022
5,444
7,502
25,076
53,954
13,091
12,205
28,658
52,883
14,343
12,119
26,421
53,603
13,907
12,773
26,923
56,952
14,461
13,503
28,988
56,959
15,011
12,993
28,955
58,347
16,145
12,462
29,740
56,924
16,852
12,174
27,898
60,903
21,385
10,751
28,767
79 To foreigners
80 Other branches of parent bank
81 Banks
82 Official institutions
83 Nonbank foreigners
117,438
15,384
56,262
21,412
24,380
112,255
16,545
51,336
16,517
27,857
99,567
18,361
44,020
11,504
25,682
92,460
19,470
38,960
10,520
23,510
91,071
20,235
37,594
9,413
23,829
91,545
18,376
38,238
10,848
24,083
89,198
17,544
37,192
10,146
24,316
89,458
17,595
37,571
9,588
24,704
92,122
19,365
37,122
11,448
24,187
88,657
18,288
35,847
10,611
23,911
5,494
6,952
7,546
7,065
7,147
7,134
7,052
7,060
7,002
7,243
120,324
124,760
123,265
125,656
127,868
128,600
74 Total, all currencies
84 Other liabilities
103,440
120,277
130,261
120,683
86 To United States
87 Parent bank
88 Other banks in United States
89 Nonbanks
21,080
4,078
5,626
11,376
37,332
5,350
7,249
24,733
53,029
12,814
12,026
28,189
51,993
14,212
11,929
25,852
52,473
13,696
12,439
26,338
56,092
14,308
13,313
28,471
56,081
14,812
12,833
28,436
57,359
15,829
12,223
29,307
55,931
16,673
11,886
27,372
59,824
21,145
10,523
28,156
90 To foreigners
91 Other branches of parent bank
9? Banks
93 Official institutions
94 Nonbank foreigners
79,636
10,474
35,388
17,024
16,750
79,034
12,048
32,298
13,612
21,076
73,477
14,300
28,810
9,668
20,699
65,485
14,815
23,821
8,474
18,375
64,621
15,636
22,960
7,306
18,719
65,428
14,117
23,895
8,786
18,630
63,818
13,386
23,453
8,065
18,914
64,801
13,421
24,447
7,630
19,303
68,252
15,166
24,478
9,381
19,227
65,277
14,542
23,136
8,742
18,857
2,724
3,911
3,755
3,205
3,230
3,240
3,366
3,496
3,685
3,499
85 Total payable in U.S. dollars
95 Other liabilities
Bahamas and Caymans
123,837
149,108
145,156
142,126
141,021
146,792
142,384
139,422
143,123
141,288
97 To United States
98 Parent bank
99 Other banks in United States
100 Nonbanks
59,666
28,181
7,379
24,106
85,759
39,451
10,474
35,834
104,425
47,081
18,466
38,878
109,698
52,063
17,451
40,184
108,847
51,145
16,143
41,559
111,631
53,626
16,921
41,084
108,575
50,729
15,495
42,351
104,193
46,214
14,560
43,419
104,641
45,468
16,191
42,982
104,166
48,241
14,294
41,631
101 To foreigners
10? Other branches of parent bank
103 Banks
104 Official institutions
105 Nonbank foreigners
61,218
17,040
29,895
4,361
9,922
60,012
20,641
23,202
3,498
12,671
38,274
15,796
10,166
1,967
10,345
30,210
10,314
8,126
1,710
10,060
29,998
10,073
7,618
1,734
10,573
33,088
11,822
9,024
1,796
10,446
31,560
12,262
8,012
2,101
9,185
32,875
12,808
8,737
2,140
9,190
36,163
14,683
9,521
2,237
9,722
34,743
14,196
9,068
1,976
9,503
% Total, all currencies
106 Other liabilities
107 Total payable in U.S. dollars
2,953
3,337
2,457
2,218
2,176
2,073
2,249
2,354
2,319
2,379
119,657
145,284
141,908
138,987
137,925
143,502
139,198
135,950
139,829
137,490
A56
3.15
International Statistics • January 1984
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1983
Item
1 Total1
2
3
4
5
6
7
8
9
10
11
12
By type
Liabilities reported by banks in the3 United States2
U.S. Treasury bills and certificates
U.S. Treasury bonds and notes
Marketable
Nonmarketable4
U.S. securities other than U.S. Treasury securities5
By area
Western Europe1
Canada
Latin America and Caribbean
Asia
Africa
Other countries6
1981
1982
June
July
Aug.
Sept/
Oct.
Nov."
169,735
172,699
174,541
174,628
175,986
173,071
171,551
173,347
173,973
26,737
52,389
24,989
46,658
23,514
49,281
23,677
49,068
21,831
53,434
22,510
50,965
21,914
50,374
22,002
51,618
22,679
52,558
53,186
11,791
25,632
67,684
8,750
24,588
70,677
7,950
23,119
71,095
7,950
22,838
70,181
7,950
22,590
69,2%
7,950
22,350
69,301
7,950
22,012
69,872
7,950
21,905
69,183
7,250
22,303
65,699
2,403
6,953
91,607
1,829
1,244
61,288
2,070
6,057
95,993
1,350
5,911
63,125
2,977
5,920
95,568
1,203
5,748
63,742
3,117
6,509
94,688
1,075
5,497
66,409
3,293
5,421
94,336
1,138
5,389
64,361
3,141
5,676
93,135
1,173
5,585
63,889
2,712
5,501
92,833
1,1%
5,420
64,824
2,816
5,629
92,502
1,023
6,553
65,544
2,670
6,467
91,669
798
6,825
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.
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
May
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.
LIABILITIES TO A N D CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1982
Item
1979
1980
Dec.
1 Banks' own liabilities
2 Banks' own claims
3 Deposits
4 Other claims
5 Claims of banks' domestic customers'
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.
1,918
2,419
994
1,425
580
3,748
4,206
2,507
1,699
%2
1983
1981
3,523
4,980
3,398
1,582
971
4,844
7,707
4,251
3,456
676
Mar.
5,075
8,097
3,725
4,372
637
June
5,810
7,817
3,878
3,940
684
Sept.
5,943
7,919
3,063
4,856
717
NOTE. Data on claims exclude foreign currencies held by U.S. monetary
authorities,
Nonbank-Reported
3.17
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Data
A57
Reported by Banks in the United States
Millions of dollars, end of period
1983
Holder and type of liability
1980
1981A
1982
May
June
July
Aug.
Sept/
Oct.
Nov."
1 AU foreigners
205,297
243,889
307,023
317,666
320,984
326,808
332,196
337,910
337,675
349,852
?. Banks' own liabilities
124,791
23,462
15,076
17,583
68,670
163,817
19,631
29,039
17,647
97,500
227,056
15,971
67,910
23,980
119,195
233,843
16,935
70,831
23,841
122,236
236,845
17,314
73,938
24,881
120,712
238,934
15,760
73,554
22,601
127,019
245,539
15,672
77,883
23,785
128,200
251,421
16,375
81,091
24,956
129,000
248,816
17,097
80,471
22,554
128,694
260,072
17,234
83,036
24,246
135,556
80,506
57,595
80,072
55,315
79,967
55,628
83,823
60,508
84,139
61,245
87,873
65,133
86,657
63,915
86,488
64,062
88,858
65,735
89,781
66,746
20,079
2,832
18,788
5,970
20,636
3,702
19,169
4,146
18,731
4,163
18,106
4,634
17,977
4,765
17,292
5,135
17,162
5,961
18,364
4,671
2,344
2,721
4,922
5,803
5,456
5,678
5,555
5,308
4,619
6,296
444
146
85
212
638
262
58
318
1,909
106
1,664
139
3,467
267
2,511
690
3,048
165
2,483
400
4,030
307
3,010
713
3,433
325
2,507
601
3,024
252
2,168
605
3,294
452
2,487
355
4,888
439
4,065
381
1,900
254
2,083
541
3,013
1,621
2,335
1,280
2,408
1,538
1,648
678
2,121
1,294
2,284
1,442
1,325
441
1,408
484
1,646
0
1,542
0
1,392
0
1,055
0
870
0
970
0
828
0
842
0
884
0
923
0
3
4
5
6
Demand deposits
Time 2deposits'
Other
Own foreign offices3
7 Banks' custody liabilities4
8 U.S. Treasury bills and certificates5
9 Other negotiable6 and readily transferable
instruments
10 Other
11 Nonmonetary international
and regional
organizations7
12 Banks' own liabilities
13 Demand deposits
14 Time 2deposits'
15 Other
16 Banks' custody liabilities4
17 U.S. Treasury bills and certificates
18 Other negotiable6 and readily transferable
instruments
19 Other
8
20 Official institutions
86,624
79,126
71,647
72,795
72,747
75,265
73,476
72,289
73,621
75,237
21 Banks' own liabilities
22 Demand deposits
23 Time 2deposits'
24 Other
17,826
3,771
3,612
10,443
17,109
2,564
4,230
10,315
16,640
1,981
5,528
9,131
16,768
2,058
6,367
8,343
16,723
2,198
6,352
8,173
15,613
1,940
6,605
7,068
16,285
1,685
6,370
8,230
16,147
1,930
6,185
8,033
16,497
1,818
6,658
8,022
16,546
2,083
6,402
8,060
25 Banks' custody liabilities4
26 U.S. Treasury bills and certificates5
27 Other negotiable6 and readily transferable
instruments
28 Other
68,798
56,243
62,018
52,389
55,008
46,658
56,026
49,281
56,023
49,068
59,652
53,434
57,191
50,965
56,142
50,374
57,124
51,618
58,691
52,558
12,501
54
9,581
47
8,321
28
6,724
22
6,937
17
6,189
29
6,186
39
5,735
32
5,469
36
6,105
28
29 Banks9
96,415
136,008
185,848
188,957
191,977
194,869
200,554
205,879
203,576
211,947
30 Banks' own liabilities
31 Unaffiliated foreign banks
32
Demand deposits
33
Time 2deposits'
34
Other
35 Own foreign offices3
90,456
21,786
14,188
1,703
5,895
68,670
124,312
26,812
11,614
8,720
6,477
97,500
169,416
50,221
8,675
28,261
13,285
119,195
169,536
47,301
8,832
25,429
13,039
122,236
172,521
51,809
9,134
27,944
14,730
120,712
174,750
47,731
8,074
26,512
13,145
127,019
180,114
51,914
8,302
29,300
14,312
128,200
184,811
55,811
8,618
31,468
15,725
129,000
181,635
52,940
9,104
30,331
13,505
128,694
190,552
54,999
8,762
31,220
15,018
135,552
5,959
623
11,696
1,685
16,432
5,809
19,420
7,824
19,456
8,396
20,119
8,599
20,440
9,015
21,069
9,440
21,941
10,036
21,396
9,967
2,748
2,588
4,400
5,611
7,857
2,766
8,315
3,282
7,771
3,289
7,821
3,699
7,581
3,845
7,553
4,075
7,542
4,363
7,228
4,201
36 Banks' custody liabilities4
37 U.S. Treasury bills and certificates
38 Other negotiable6 and readily transferable
instruments
39 Other
40 Other foreigners
19,914
26,035
44,606
50,111
50,805
50,996
52,612
54,433
55,859
56,372
41 Banks' own liabilities
42 Demand deposits
43 Time 2deposits
44 Other
16,065
5,356
9,676
1,033
21,759
5,191
16,030
537
39,092
5,209
32,457
1,426
44,070
5,777
36,524
1,769
44,552
5,817
37,158
1,578
44,542
5,439
37,428
1,675
45,707
5,360
39,706
642
47,439
5,575
41,270
594
47,391
5,723
40,995
673
48,086
5,950
41,349
787
3,849
474
4,276
699
5,514
1,540
6,041
2,123
6,253
2,242
6,454
2,422
6,905
2,641
6,995
2,805
8,468
3,640
8,286
3,737
3,185
190
3,265
312
3,065
908
3,076
842
3,154
857
3,126
906
3,383
881
3,162
1,028
3,267
1,562
4,108
441
10,745
10,747
14,307
11,537
11,589
11,062
10,720
10,336
9,975
10,324
45 Banks' custody liabilities4
46 U.S. Treasury bills and certificates
47 Other negotiable6 and readily transferable
instruments
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.
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."
• Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
A58
3.17
International Statistics • January 1984
Continued
1983
Area and country
1980
1981 •
1982
May
June
July
Aug.
Sept/
Oct.
NOV.p
1 Total
205,297
243,889
307,023
317,666
320,984
326,808
332,196
337,910
337,675
349,852
2 Foreign countries
202,953
241,168
302,101
311,863
315,528
321,130
326,641
332,601
333,056
343,556
90,897
523
4,019
497
455
12,125
9,973
670
7,572
2,441
1,344
374
1,500
1,737
16,689
242
22,680
681
6,939
68
370
91,275
596
4,117
333
296
8,486
7,645
463
7,267
2,823
1,457
354
916
1,545
18,716
518
28,286
375
6,541
49
493
117,753
519
2,517
509
748
8,171
5,351
537
5,626
3,362
1,567
388
1,405
1,390
29,066
296
48,172
499
7,006
50
573
116,077
572
2,610
732
280
6,652
3,971
648
5,573
3,550
9,227
427
1,621
1,356
29,781
248
48,840
549
6,061
53
327
118,531
640
2,843
616
447
6,766
3,423
567
6,634
3,246
1,719
350
1,615
1,493
29,941
198
50,343
504
6,666
71
448
118,788
610
2,955
612
292
8,845
3,707
588
7,790
3,413
900
338
1,694
1,407
29,958
224
48,015
427
6,514
45
453
120,925
556
3,116
573
459
8,488
3,537
636
7,277
3,633
1,044
315
1,585
1,204
29,867
315
51,206
462
6,237
31
384
125,850
659
2,795
593
373
8,827
3,438
604
6,931
3,892
1,457
302
1,678
1,337
29,938
333
55,602
506
6,038
23
525
126,669
570
2,853
544
372
8,640
4,307
595
7,703
3,737
1,072
297
1,592
1,479
30,725
277
54,746
464
6,082
37
576
129,300
641
2,464
535
375
8,083
4,331
546
7,818
3,715
1,526
305
1,540
1,686
30,434
319
57,393
552
6,493
27
519
3 Europe
4 Austria
5 Belgium-Luxembourg
6 Denmark
7 Finland
8 France
9 Germany
10 Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
21 Other Western Europe1
22 U.S.S.R
23 Other Eastern Europe2
24 Canada
10,031
10,250
12,232
16,309
16,345
16,676
17,917
16,470
16,325
16,332
25 Latin America and Caribbean
26 Argentina
27 Bahamas
28 Bermuda
29 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
53,170
2,132
16,381
670
1,216
12,766
460
3,077
6
371
367
97
4,547
413
4,718
403
254
3,170
2,123
85,223
2,445
34,856
765
1,568
17,794
664
2,993
9
434
479
87
7,235
3,182
4,857
694
367
4,245
2,548
114,133
3,578
44,719
1,572
2,014
26,376
1,626
2,594
9
455
670
126
8,377
3,597
4,805
1,147
759
8,417
3,291
118,528
4,746
49,751
1,831
2,483
23.312
1,345
1,873
8
658
711
108
8,536
3,622
5,749
1,005
919
8,576
3,295
120,440
4,763
49,741
2,064
2,675
24,213
1,355
1,719
13
581
705
130
9,027
3,514
5,670
1,148
955
8,631
3,537
124,257
5,017
54,506
2,360
2,681
24,172
1,385
1,618
11
532
697
108
9,142
3,434
5,608
1,055
958
7,715
3,257
126,600
4,249
52,002
2,847
3,017
26,957
1,472
1,674
12
601
718
106
9,445
3,486
5,934
1,129
1,033
8,587
3,331
127,077
4,148
49,859
2,833
3,406
28,442
1,613
1,611
10
670
758
109
9,697
3,581
6,079
1,203
1,116
8,382
3,561
127,171
4,018
51,114
2,632
3,818
27,410
1,697
1,617
10
825
750
105
9,447
3,860
5,902
1,049
1,202
8,202
3,513
134,336
4,382
53,957
2,608
4,187
30,479
1,781
1,647
10
1,004
769
234
9,484
3,932
5,915
1,119
1,160
8,026
3,645
44
42,420
49,822
48,716
52,117
51,957
53,025
52,628
54,583
53,370
54,028
49
1,662
2,548
416
730
883
16,281
1,528
919
464
14,453
2,487
158
2,082
3,950
385
640
592
20,750
2,013
874
534
12,992
4,853
203
2,761
4,465
433
857
606
16,078
1,692
770
629
13,433
6,789
158
3,765
5,195
719
765
789
17,403
1,459
783
566
12,610
7,906
208
3,744
5,587
669
554
835
17,006
1,326
818
692
11,832
8,685
192
3,913
5,554
606
1,245
670
17,655
1,552
770
537
11,865
8,467
176
4,086
5,604
528
839
812
16,922
1,553
933
531
11,764
8,877
190
3,852
6,582
712
622
848
17,418
1,478
1,181
581
12,661
8,458
216
3,992
6,507
830
871
812
17,103
1,353
747
522
12,410
8,007
184
4,060
6,963
713
659
803
17,088
1,591
1,011
569
12,496
7,890
57 Africa
58 Egypt
59 Morocco
60 South Africa
61 Zaire
62 Oil-exporting countries4
63 Other Africa
5,187
485
33
288
57
3,540
783
3,180
360
32
420
26
1,395
946
3,124
432
81
292
23
1,280
1,016
2,876
513
50
358
32
867
1,057
2,693
467
54
355
59
743
1,014
2,916
554
57
403
55
928
919
2,853
465
48
452
29
934
926
3,132
488
84
520
34
963
1,042
2,845
576
73
394
43
736
1,023
2,694
589
96
389
32
679
909
66
64 Other countries
65 Australia
All other
1,247
950
297
1,419
1,223
1%
6,143
5,904
239
5,956
5,778
178
5,562
5,404
159
5,469
5,250
219
5,719
5,512
208
5,490
5,284
206
6,675
6,461
214
6,866
6,665
201
67 Nonmonetary international and regional
organizations
68 International
69 Latin American5 regional
70 Other regional
2,344
1,157
890
296
2,721
1,661
710
350
4,922
4,049
517
357
5,803
5,078
457
267
5,456
4,747
443
266
5,678
4,987
454
237
5,555
4,861
441
252
5,308
4,674
445
189
4,619
3,944
437
238
6,296
5,547
415
334
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 countries3
Other Asia
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."
• Liabilities and claims of banks in the United States were increased, beginning
in December 1981, by the shift from foreign branches to international banking
facilities in the United States of liabilities to, and claims on, foreign residents.
Nonbank-Reported
3.18
Data
A59
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1983
Area and country
1980
1981A
1982
May
June
July
Aug.
Sept/
Oct.
Nov.P
1 Total
172,592
251,573
355,694
364,096
372,437
366,155
371,924
375,536
375,243
374,262
2 Foreign countries
172,514
251,517
355,625
364,019
372,337
366,070
371,839
374,939
375,183
374,192
32,108
236
1,621
127
460
2,958
948
256
3,364
575
227
331
993
783
1,446
145
14,917
853
179
281
1,410
49,262
121
2,849
187
546
4,127
940
333
5,240
682
384
529
2,095
1,205
2,213
424
23,849
1,225
211
377
1,725
85,508
229
5,138
554
990
7,251
1,876
452
7,560
1,425
572
950
3,744
3,038
1,639
560
45,706
1,430
368
263
1,762
83,975
309
5,689
1,059
766
7,839
1,208
607
6,985
1,282
683
818
3,062
2,307
1,085
578
45,949
1,482
254
349
1,664
86,335
342
5,7%
1,077
870
7,941
1,404
576
7,323
1,165
652
846
3,199
2,864
1,598
570
46,250
1,463
334
373
1,692
84,496
383
5,449
1,064
777
7,900
1,112
458
7,401
%7
598
844
3,339
2,910
1,727
629
45,346
1,381
356
288
1,566
87,876
338
5,890
1,124
637
8,589
1,153
375
7,387
1,048
634
848
3,373
2,836
1,630
594
47,751
1,351
406
232
1,680
90,522
351
5,650
1,131
697
7,869
1,428
408
7,038
1,189
550
861
3,389
3,081
1,765
616
50,780
1,369
529
215
1,606
88,835
334
5,503
1,103
789
7,390
1,095
369
7,686
1,063
575
893
3,128
3,059
1,579
660
49,965
1,468
394
206
1,575
88,302
390
5,404
1,190
788
7,779
1,250
402
8,300
1,300
564
887
3,565
3,1%
1,948
693
46,913
1,570
417
169
1,578
3 Europe
4 Austria
5 Belgium-Luxembourg
6 Denmark
7
8 France
9 Germany
10 Greece
It
Italy
1? Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
70 Yugoslavia
71 Other Western Europe1
??
U.S.S.R
23 Other Eastern Europe2
4,810
9,193
13,678
16,536
16,616
16,497
17,501
16,525
15,885
16,259
75 Latin America and Caribbean
76 Argentina
77 Bahamas
78 Bermuda
79 Brazil
30 British West Indies
31 Chile
37 Colombia
33 Cuba
34 Ecuador
35 Guatemala3
36 Jamaica3
37 Mexico
38 Netherlands Antilles
39 Panama
40 Peru
41 Uruguay
47 Venezuela
43 Other Latin America and Caribbean
92,992
5,689
29,419
218
10,496
15,663
1,951
1,752
3
1,190
137
36
12,595
821
4,974
890
137
5,438
1,583
138,331
7,527
43,535
346
16,926
21,972
3,690
2,018
3
1,531
124
62
22,439
1,076
6,794
1,218
157
7,069
1,844
188,199
10,974
56,880
603
23,271
29,101
5,513
3,211
3
2,062
124
181
29,552
839
10,210
2,357
686
10,643
1,991
198,139
11,550
58,965
628
23,541
33,356
5,568
3,485
0
2,040
90
197
31,939
827
9,686
2,416
824
10,748
2,280
198,880
11,243
62,153
447
23,333
32,518
5,161
3,600
0
2,038
90
207
32,318
519
8,824
2,624
820
10,848
2,138
195,018
11,112
58,824
358
23,711
30,349
5,188
3,656
0
2,018
%
209
32,862
943
9,127
2,506
833
11,121
2,104
195,219
11,334
54,670
390
24,224
31,804
5,389
3,592
0
2,014
100
204
33,689
838
10,091
2,421
820
11,045
2,592
194,391
11,444
55,009
578
24,282
30,877
5,792
3,665
0
2,020
112
214
33,740
897
9,189
2,470
857
11,037
2,209
197,794
11,618
58,944
494
24,176
30,796
5,740
3,648
3
2,154
115
203
33,4%
996
8,835
2,434
883
10,881
2,378
199,943
11,846
58,653
784
24,352
32,459
5,888
3,750
0
2,258
122
210
33,446
1,143
8,292
2,426
902
10,958
2,453
44
39,078
49,851
60,786
57,412
62,502
61,874
62,538
64,751
63,425
60,486
195
2,469
2,247
142
245
1,172
21,361
5,697
989
876
1,432
2,252
107
2,461
4,132
123
352
1,567
26,797
7,340
1,819
565
1,581
3,009
214
2,288
6,698
222
348
2,029
28,302
9,387
2,625
643
3,087
4,943
219
1,613
7,552
198
569
1,926
24,757
8,940
2,493
707
4,027
4,413
166
1,760
7,845
230
537
2,181
27,381
9,143
2,829
788
4,452
5,191
124
1,715
8,033
245
595
1,657
27,758
9,639
2,640
689
4,003
4,776
179
1,644
8,022
275
635
1,639
27,416
9,6%
2,530
735
4,654
5,114
227
1,829
8,704
259
688
1,726
28,563
9,634
2,777
806
4,142
5,395
295
1,618
8,180
324
697
1,780
28,228
9,314
2,369
831
4,607
5,182
249
1,488
8,654
300
704
1,816
25,634
9,383
2,384
867
4,221
4,786
2,377
151
223
370
94
805
734
3,503
238
284
1,011
112
657
1,201
5,346
322
353
2,012
57
801
1,802
5,538
378
441
2,123
47
851
1,699
5,662
421
463
2,231
46
830
1,671
5,937
486
484
2,407
45
850
1,664
6,527
529
444
2,630
40
1,052
1,832
6,482
596
444
2,719
38
964
1,722
6,889
623
462
2,582
38
1,481
1,703
6,768
670
461
2,867
37
1,024
1,709
1,150
859
290
1,376
1,203
172
2,107
1,713
394
2,418
1,756
662
2,342
1,722
620
2,248
1,635
613
2,177
1,635
542
2,267
1,675
593
2,357
1,692
664
2,434
1,814
620
78
56
68
77
100
85
85
598
60
70
24 Canada
45
46
47
48
49
50
51
57
53
54
55
56
57
58
59
60
61
67
63
China
Mainland
Taiwan
Hong Kong
Indonesia
Philippines
Middle East oil-exporting countries4
Other Asia
Egypt
Morocco
South Africa
Oil-exporting countries5
Other
64 Other countries
65 Australia
66 All other
and regional
67 Nonmonetary international
organizations6
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.
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."
NOTE. Data for period before April 1978 include claims of banks' domestic
customers on foreigners.
• Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
A60
3.19
International Statistics • January 1984
BANKS' OWN A N D DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
Millions of dollars, end of period
1983
Type of claim
1980
1981A
1982
May
July
Aug.
366,155
49,609
135,686
117,720
46,166
71,554
63,141
371,924
51,586
137,155
120,495
47,157
73,338
62,688
June
Sept.'
1 Total
198,698
287,541
396,004
2
3
4
5
6
7
8
172,592
20,882
65,084
50,168
8,254
41,914
36,459
251,573
31,260
96,653
74,688
23,365
51,322
48,972
355,694
45,409
127,448
121,333
44,180
77,153
61,504
26,106
885
35,968
1,378
40,310
2,491
35,473
2,631
36,102
2,654
15,574
26,352
30,763
26,708
27,550
9,648
8,238
7,056
6,133
5,898
22,714
29,952
38,338
34,811
34,585
24,468
39,862
41,702'
Banks' own claims on foreigners
Foreign public borrowers
Own foreign offices'
Unaffiliated foreign banks
Deposits
Other
All other foreigners
9 Claims of banks' domestic customers2
407,910
372,437
49,240
140,139
120,559
46,883
73,676
62,499
364,096
47,821
139,392
116,017
44,403
71,613
60,867
Oct.
NOV.P
411,639
375,536
53,699
137,382
121,900
48,179
73,721
62,556
375,243
54,756
144,673
114,160
44,714
69,446
61,654
374,262
55,278
140,095
116,434
44,448
71,985
62,456
11 Negotiable and readily transferable
12 Outstanding collections and other
13 MEMO: Customer liability on
Dollar deposits in banks abroad, reported by nonbanking business4 enterprises in the United States . . .
43,49<K
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. Principally negotiable time certificates of deposit and bankers acceptances.
3.20
41,162'
41,443'
41,899'
41,652
44,189'
n.a.
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.
• Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
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
Millions of dollars, end of period
1982
Maturity; by borrower and area
1
2
3
4
5
6
7
8
9
10
11
12
13
By borrower
Maturity of 1 year or less1
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'
Europe
Canada
Latin America and Caribbean
All other2
Maturity of over 1 year'
14 Europe
15 Canada
16 Latin America and Caribbean
17
18
19 AH other2
1. Remaining time to maturity.
2. Includes nonmonetary international and regional organizations.
1980
1983
1981A
Sept.
Dec.
Mar.
June
Sept.
106,748
154,574
215,200
227,967
229,437
231,022
233,676
82,555
9,974
72,581
24,193
10,152
14,041
116,378
15,142
101,236
38,197
15,589
22,608
163,465
20,095
143,370
51,735
22,016
29,719
173,736
21,236
152,500
54,231
23,127
31.104
173,631
21,667
151,964
55,807
24,693
31,113
173,596
22,442
151,154
57,427
26,170
31,257
174,629
25,519
149,111
59,046
27,077
31,970
18,715
2,723
32,034
26,686
1,757
640
28,130
4,662
48,701
31,485
2,457
943
45,908
7,062
72,353
33,358
3,621
1,163
50,493
7,642
73,239
37,455
3,680
1,226
53,986
6,845
74,998
32,574
3,872
1,355
51,797
6,957
74,622
35,183
3,854
1,182
52,665
6,443
76,031
33,442
4,657
1,391
5,118
1,448
15,075
1,865
507
179
8,100
1,808
25,209
1,907
900
272
10,564
2,003
34,112
3,092
1,328
635
11,636
1,931
35,245
3,185
1,494
740
11,986
1,924
35,844
3,573
1,485
995
12,181
1,864
36,604
4,045
1,667
1,066
11,613
1,756
38,254
4,581
1,734
1,108
A Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
Bank-Reported
3.21
Data
A61
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks'
Billions of dollars, end of period
1981
Area or country
1979
1983
1982
1980
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
June
Sept.
1 Total
303.9
352.0
400.0
415.2
419.6
435.1
437.9
438.5
440.1
435.2
421.0
2 G-10 countries and Switzerland
3 Belgium-Luxembourg
138.4
11.1
11.7
12.2
6.4
4.8
2.4
4.7
56.4
6.3
22.4
162.1
13.0
14.1
12.1
8.2
4.4
2.9
5.0
67.4
8.4
26.5
172.3
14.1
16.0
12.7
3.7
3.5
5.1
68.8
11.8
28.1
175.5
13.3
15.3
12.9
9.6
4.0
3.7
5.5
70.1
10.9
30.2
174.5
13.2
16.0
12.5
9.0
4.0
4.1
5.3
70.3
11.6
28.5
176.2
14.1
16.5
12.7
9.0
4.1
4.0
5.1
69.3
11.4
29.9
175.3
13.6
15.8
12.2
9.7
3.8
4.7
5.1
70.2
11.0
29.3
179.5
13.1
17.1
12.7
10.3
3.6
5.0
5.0
72.0
10.4
30.1
181.8
13.7
17.1
13.4
10.2
4.3
4.3
4.6
72.7
12.4
29.1
175.8
13.3
17.1
12.5
10.5
4.1
4.7
4.7
69.7
10.7
28.5
164.9
12.4
16.0
11.5
9.7
3.6
4.8
4.2
65.1
8.8
28.8
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
19.9
2.0
2.2
1.2
2.4
2.3
.7
3.5
1.4
1.4
1.3
1.3
21.6
1.9
2.3
1.4
2.8
2.6
.6
4.4
1.5
1.7
1.1
1.3
26.4
2.2
2.5
1.4
2.9
3.0
1.0
5.8
1.5
1.9
2.5
1.9
28.4
1.9
2.3
1.7
2.8
3.1
1.1
6.6
1.4
2.1
2.8
2.5
30.7
2.1
2.5
1.6
2.9
3.2
1.2
7.2
1.6
2.1
3.3
3.0
32.1
2.1
2.6
1.6
2.7
3.2
1.5
7.3
1.5
2.2
3.5
4.0
32.7
2.0
2.5
1.8
2.6
3.4
1.6
7.7
1.5
2.1
3.6
4.0
33.7
1.9
2.4
2.2
3.0
3.3
1.5
7.5
1.4
2.3
3.7
4.4
33.9
2.1
3.3
2.1
2.9
3.3
1.4
7.0
1.5
2.2
3.6
4.6
34.3
2.1
3.3
2.1
2.8
3.4
1.4
7.2
1.4
2.1
3.9
4.5
33.9
1.9
3.3
1.8
2.9
3.2
1.3
7.1
1.5
2.1
4.6
4.3
25 OPEC countries2
26 Ecuador
27 Venezuela
28 Indonesia
29 Middle East countries
30 African countries
22.9
1.7
8.7
1.9
8.0
2.6
22.7
2.1
9.1
1.8
6.9
2.8
23.5
2.1
9.2
2.5
7.1
2.6
24.8
2.2
9.9
2.6
7.5
2.5
25.4
2.3
10.0
2.7
8.2
2.2
26.4
2.4
10.1
2.8
8.7
2.5
27.3
2.3
10.4
2.9
9.0
2.7
27.4
2.2
10.5
3.2
8.7
2.8
28.5
2.2
10.4
3.5
9.3
3.0
28.0
2.2
10.2
3.2
9.5
3.0
27.0
2.1
9.6
3.4
9.0
2.8
31 Non-OPEC developing countries
63.0
77.4
90.3
96.3
97.5
103.6
104.0
107.0
107.5
108.1
107.6
5.0
15.2
2.5
2.2
12.0
1.5
3.7
7.9
16.2
3.7
2.6
15.9
1.8
3.9
9.3
17.7
5.5
2.5
20.0
1.8
4.2
9.4
19.1
5.8
2.6
21.6
2.0
4.1
10.0
19.7
6.0
2.3
22.9
1.9
4.1
9.6
21.4
6.4
2.6
25.2
2.5
4.0
9.2
22.4
6.2
2.8
25.0
2.6
4.3
8.9
22.9
6.3
3.1
24.5
2.6
4.0
9.0
23.1
6.0
2.9
25.0
2.4
4.2
9.4
22.5
5.8
3.2
25.0
2.6
4.3
9.4
22.6
6.1
3.2
25.5
2.3
4.2
.2
5.1
.5
1.7
8.6
1.7
5.9
1.4
1.2
.3
5.0
.5
2.2
8.9
1.9
6.3
1.3
1.1
.2
4.9
.5
1.9
9.3
1.8
6.0
1.3
1.3
.2
5.2
.6
2.3
10.8
2.1
6.3
1.6
1.1
.2
5.1
.4
2.0
10.8
2.5
6.6
1.6
1.4
.2
5.1
.5
2.3
10.8
2.6
6.4
1.8
1.2
.2
5.1
.5
1.7
10.5
2.8
6.1
1.7
1.0
5
6
7
8
9
10
11
12
Germany
Italy
Netherlands
Sweden
Switzerland
United Kingdom
Canada
Japan
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.1
3.4
.2
1.3
5.4
1.0
4.2
1.5
.5
.2
4.2
.3
1.5
7.1
1.1
5.1
1.6
.6
.2
5.1
.3
1.5
.8
.2
5.1
.3
2.1
9.4
1.7
6.0
1.5
1.0
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa3
.6
.6
.2
1.7
.8
.7
.2
2.1
1.0
.7
.2
2.2
1.1
.7
.2
2.3
1.3
.7
.2
2.3
1.3
.7
.2
2.3
1.3
.8
.1
2.2
1.2
.7
.1
2.4
1.1
.8
.1
2.3
1.2
.8
.1
2.2
1.4
.8
.1
2.4
52 Eastern Europe
53 U.S.S.R
54 Yugoslavia
55 Other
7.3
.7
1.8
4.8
7.4
.4
2.3
4.6
7.7
.4
2.5
4.7
7.8
.6
2.5
4.7
7.2
.4
2.5
4.3
6.7
.4
2.4
3.9
6.3
.3
2.2
3.8
6.2
.3
2.2
3.7
5.8
.3
2.2
3.3
5.8
.4
2.3
3.1
5.3
.2
2.2
2.9
56 Offshore banking centers
57 Bahamas
58 Bermuda
59 Cayman Islands and other British West Indies
60 Netherlands
Antilles
61 Panama4
62 Lebanon
63 Hong Kong
64 Singapore
65 Others5
40.4
13.7
.8
9.4
1.2
4.3
.2
6.0
4.5
.4
47.0
13.7
.6
10.6
2.1
5.4
.2
8.1
5.9
.3
61.8
21.4
.8
12.1
2.2
6.8
.2
10.3
8.0
.1
63.7
19.0
.7
12.4
3.2
7.7
.2
11.8
8.7
.1
65.7
20.2
.7
12.1
3.2
7.2
.2
12.9
9.3
.1
72.0
24.1
.7
12.3
3.0
7.4
.2
14.3
9.9
.1
72.0
21.4
.8
13.6
3.3
8.1
.1
14.9
9.8
.0
66.9
19.2
.9
12.9
3.3
7.6
.1
13.8
9.1
.0
66.2
17.7
1.0
11.9
3.1
7.1
.1
15.0
10.3
.0
67.4
19.9
.8
11.9
2.6
6.5
.1
14.5
11.0
.0
65.6
19.2
.9
10.1
4.2
5.6
.1
15.0
10.4
.1
66 Miscellaneous and unallocated6
11.7
14.0
18.2
18.8
18.5
18.4
20.3
17.9
16.4
15.7
16.9
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 of foreign 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. 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).
3. Excludes Liberia.
4. Includes Canal Zone beginning December 1979.
5. Foreign branch claims only.
6. Includes New Zealand, Liberia, and international and regional organizations.
A62
3.22
International Statistics • January 1984
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbariking Business Enterprises in the
United States 1
Millions of dollars, end of period
1982
Type, and area or country
1979
1983
1981
1980
June
Sept.
Dec.
Mar.
June'
1 Total
17,433
29,434
28,618'
25,532'
25,149'
25,142'
22,925
22,267
2 Payable in dollars
3 Payable in foreign currencies
14,323
3,110
25,689
3,745
24,909'
3,709'
22,770'
2,763
22,051'
3,099
22,042'
3,099
20,032
2,893
19,477
2,790
By type
4 Financial liabilities
5 Payable in dollars
6 Payable in foreign currencies
7,523
5,223
2,300
11,330
8,528
2,802
12,157'
9,499'
2,658'
10,144'
8,203'
1,941
10,855'
8,565'
2,291
10,499'
8,424'
2,075
10,478
8,533
1,945
10,760
8,730
2,031
7 Commercial liabilities
8 Trade payables
9 Advance receipts and other liabilities
9,910
4,591
5,320
18,104
12,201
5,903
16,461
10,818
5,643
15,388'
9,475
5,913'
14,294'
8,084'
6,209'
14,642'
7,687'
6,955'
12,447
5,620
6,827
11,507
5,979
5,527
9,100
811
17,161
943
15,409
1,052
14,566'
822
13,486'
808
13,618'
1,024
11,499
948
10,747
759
4,665
338
175
497
829
170
2,477
6,481
479
327
582
681
354
3,923
6,825'
471
709
491
748
715
3,565'
5,944
518
581
439
517
661
3,081
6,389
494
672
446
759
670
3,212
6,172
502
635
470
702
673
3,061
6,090
407
685
487
687
623
3,071
6,126
436
697
460
728
595
3,060
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
532
964
963'
784'
753'
735'
723
854
1,514
404
81
18
516
121
72
3,136
964
1
23
1,452
99
81
3,356
1,279
7
22
1,241
102
98
2,805
1,003
7
24
1,044
83
100
2,969
938
9
28
981
85
104
2,707
890
14
28
1,002
121
114
2,690
817
18
39
1,001
149
121
2,435
695
10
34
932
151
124
804
726
31
723
644
38
976
792
75
582'
395'
66
714'
479'
67
857'
633'
69
943
699
68
1,319
943
205
Africa
Oil-exporting countries3
4
1
11
1
14
0
17
0
17
0
17
0
20
0
17
0
All other4
4
15
24
11
13
12
13
9
3,709
137
467
545
227
316
1,080
4,402
3,770
71
573
545
220
424
880
3,844
47
703
457
246
412
951
3,957
50
762
436
277
358
1,001
3,639'
52
595
459'
346
363
851'
3,430
45
576
440
351
354
679
3,335
41
614
426
342
357
621
19
Canada
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
27
28
29
Asia
Japan
Middle East oil-exporting countries2
30
31
32
33
34
35
36
37
38
39
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
90
582
679
219
499
1,209
40
Canada
924
888
897
1,134
1,197
1,496'
1,454
1,478
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,325
69
32
203
21
257
301
1,300
8
75
111
35
367
319
1,044
2
67
67
2
340
276
1,460
20
102
62
2
769
219
1,235
6
48
128
3
499
269
991
16
89
60
32
379
148
1,050
4
117
51
4
355
183
999
1
76
49
22
391
219
48
49
50
Asia
Japan
Middle East oil-exporting countries2,5
2,991
583
1,014
10,242
802
8,098
9,384
1,094
7,008
7,591'
1,085
5,195
6,641'
1,192'
4,178
7,16C
1,226'
4,531
5,437
1,235
2,803
4,685
1,122
2,294
51
52
Africa
Oil-exporting countries3
728
384
817
517
703
344
729
340
669
248
704
277
497
158
492
167
53
All other4
233
456
664
630
595
651
578
518
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.
Nonbank-Reported
3.23
CLAIMS ON UNAFFILIATED FOREIGNERS
United States'
Millions of dollars, end of period
Data
Reported by Nonbanking Business Enterprises in the
1983
1982
Type, and area or country
1981
1980
979
A63
Sept.
June
Dec.
June
Mar.
1 Total
31,299
34,482
36,185
31,039'
30,232'
27,988'
30,726'
31,622'
2 Payable in dollars
3 Payable in foreign currencies
28,096
3,203
31,528
2,955
32,582
3,603
28,525r
2,513'
27,571'
2,661'
25,36c
2,628'
27,984'
2,741
29,046'
2,576'
By type
4 Financial claims
5 Deposits
6
Payable in dollars
7
Payable in foreign currencies
8 Other financial claims
9
Payable in dollars
10
Payable in foreign currencies
18,398
12,858
11,936
923
5,540
3,714
1,826
19,763
14,166
13,381
785
5,597
3,914
1,683
21,142
15,081
14,456
625
6,061
3,599
2,462
18,814'
14,04K
13,671'
370
4,773'
3,194
1,579'
18,356^
13,241'
12,828'
413
5,115'
3,419
1,696'
17,033'
12,497'
12,071'
426
4,536'
2,895
1,641'
19,743'
15,092'
14,614'
478
4,651
3,006
1,645
21,148'
16,324'
15,897'
426'
4,824'
3,226'
1,598'
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims..
12,901
12,185
716
14,720
13,960
759
15,043
14,007
1,036
12,225'
11,045'
1,179
11,877'
10,770'
1,106
10,954'
9,945'
1,010
10,983
9,780
1,203
10,474
9,222
1,252
14
15
12,447
454
14,233
487
14,527
516
11,661'
564
11,324'
552
10,394'
561
10,364
619
9,923
551
6,179
32
177
409
53
73
5,099
6,069
145
298
230
51
54
4,987
4,596
43
285
224
50
117
3,546
4,867'
13
324
148
106'
74
3,93(K
4,967'
16
326
215'
4,772'
10
134
178
97'
107
3,981'
6,066
58
90
127
140
99
5,301
7,207'
12
137
216r
136
34'
6,437'
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxe mbourg
France
Germany
Netherlands
Switzerland
United Kingdom
1W
60
3,859'
23
Canada
5,003
5,036
6,755
4,436'
4,386'
4,287'
4,612'
4,870'
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
6,312
2,773
30
163
2,011
157
143
7,811
3,477
135
96
2,755
208
137
8,812
3,650
18
30
3,971
313
148
8,487'
3,832'
42
76
3,676'
274
134
7,948'
3,435'
16
76
3,411'
268
133
7,087'
3,160'
8
62
2,929'
274
139
8,173'
3,756'
10
50
3,080'
352
156
7,997'
3,244'
72'
48
3,317'
348
152
31
32
33
Asia
Japan
Middle East oil-exporting countries2
601
199
16
607
189
20
758
366
37
802
327
33
846
268
30
698
153
15
712
233
18
771'
288'
14
34
35
Africa
Oil-exporting countries3
258
49
208
26
173
46
156
41
165
50
158
48
153
45
154
48
36
All other4
44
32
48
66
44
31
25
149
4,922
202
727
593
298
272
901
5,544
233
1,129
599
318
354
929
5,405
234
776
561
299
431
985
4,331'
211
636
394
291
414
905
4,231'
178
646
427
268'
291
1,035
3,758'
150
473
356
347
339
793
3,592
140
489
419
309
227
754
3,392
144
495
358
242
303
737
37
38
39
40
41
42
43
44
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
859
914
967
714
666
635
674
740
3,479
12
223
668
12
1,022
424
2,790'
30
225
423
10
750
383
2,772
19
154
481
7
869
373
2,514'
21
259
258
12
767
351
2,690
30
172
401
21
886
288
2,714
30
108
510
21
951
273
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,879
21
197
645
16
708
343
3,766
21
108
861
34
1,102
410
52
53
54
Asia
Japan
Middle East oil-exporting countries2
3,451
1,177
765
3,522
1,052
825
3,959
1,245
905
3,329'
1,144'
809
3,098'
973
777
3,045'
1,047
748
3,126
1,115
701
2,741
854
696
55
56
Africa
Oil-exporting countries3
551
130
653
153
772
152
648
138
661'
148
588
140
559
131
527
130
57
All other4
240
321
461
413
448
415
342
360
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.
A64
3.24
International Statistics • January 1984
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1983
Transactions, and area or country
1981
1983
1982
Jan.Nov.
May
June
Aug.
July
Sept.
Oct.
Nov.''
U.S. corporate securities
STOCKS
1
2
Foreign purchases
Foreign sales
40,686
34,856
41,942
37,965
63,878
58,696
6,625
6,365
6,864
6,454
5,758
5,198
5,181
5,142
5,516'
5,116
5,528
5,392
4,847
4,783
65
3
Net purchases, or sales (—)
5,830
3,976
5,182
260
410
560
39
4<HK
136
4
Foreign countries
5,803
3,892
5,076
258
435
551
40
392'
132
64
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 East1
Other Asia
Africa
Other countries
3,662
900
-22
42
288
2,235
783
-30
1,140
287
7
-46
2,616
-143
333
-60
-532
3,152
221
308
366
246
2
131
4,302
-34
1,104
-123
1,522
1,758
964
287
-820
280
40
23
302
-28
86
-81
269
122
92
63
-192
0
3
-10
202
14
-31
-57
186
95
98
28
36
68
1
2
442
33
135
7
187
49
1
35
-59
146
0
-12
97
-77
54
-13
56
79
75
-98
-88
75
7
-28
261'
-10
48
-49
123
171
154
106'
-178
51
4
-6
-99
-36
55
-15
-18
-136
124
-44
49
103
-1
-1
-58
-66
53
24
-97
21
0
17
44
63
1
-3
17
Nonmonetary international and
regional organizations
27
85
106
2
-25
9
-1
8
4
0
17,304
12,272
21,918
20,463
22,485
21,700
2,458
2,289
1,546
1,741
1,438
1,463
2,141
1,995
1,888
1,960
2,537
2,465
2,018
1,304
714
BONDS 2
18
19
Foreign purchases
Foreign sales
20
Net purchases, or sales ( - )
5,033
1,456
785
169
-195
-25
146
-72
72
21
Foreign countries
4,972
1,483
777
193
-197
-49
44
-77
169
695
22
23
24
25
26
27
28
29
30
31
32
33
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East'
Other Asia
Africa
Other countries
1,351
11
848
70
108
196
-12
132
3,465
44
-1
-7
2,081
295
2,116
28
161
-581
25
160
-748
-23
-19
7
1,029
-78
293
47
558
574
149
74
-1,165
638
0
52
474
7
85
12
188
141
22
10
-378
62
1
2
-122
-7
-12
-4
28
120
-10
19
-168
47
2
35
-74
-5
-8
5
-8
-33
53
13
-119
78
0
0
115
-6
25
-3
-1
112
-3
-21
-121
74
0
0
14
0
41
1
-19
32
-10
4
-105
19
2
-2
303
2
66
11
7
136
22
24
-221
45
0
-4
458
-31
53
5
15
390
46
-6
95
101
0
0
34
Nonmonetary international and
regional organizations
61
-28
8
-24
2
24
102
6
-97
20
Foreign securities
35
36
37
Stocks, net purchases, or sales ( - )
Foreign purchases
Foreign sales
-247
9,339
9,586
-1,341
7,163
8,504
-3,015
12,641
15,656
-641
1,079
1,720
-647
1,346
1,993
-487
972
1,458
-214
1,032
1,246
-106
1,297'
1,403'
-14
1,140
1,154
626
1,549
923
38
39
40
Bonds, net purchases, or sales ( - )
Foreign purchases
Foreign sales
-5,460
17,553
23,013
-6,602
29,843
36,445
-3,209
33,377
36,586
-838
2,655
3,493
127
3,220
3,092
-219
2,534
2,754
-463
2,708
3,171
-54
3,714
3,768
-172
3,902
4,075
-77
3,112
3,188
41
Net purchases, or sales ( - ) , of stocks and bonds . . . .
-5,707
-7,942
-6,224
-1,479
-520
-706
-677
-160
-186
550
42
43
44
45
46
47
48
49
Foreign countries
Europe
Canada
Latin America and Caribbean
-4,694
-6,777
-5,887
-973
-546
-715
-684
-146
-235
-728
-3,697
69
-367
-55
84
-2,481
-2,364
286
-1,845
-9
-364
-5,134
-1,135
1,103
-841
141
-21
-632
-287
243
-310
9
4
-583
5
-80
-182
13
280
-682
55
47
-145
11
0
-301
-97
62
23
14
-385
124
-355
23'
105'
16
-59
-338
6
5
90
11
-10
445
-417
432
135
160
1
135
-1,012
-1,165
-337
-506
26
9
7
49
105
Africa
Other countries
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).
-14
2. Includes state and local government securities, and securities of U.S.
government agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. corporations organized to finance direct investments
abroad.
Investment
3.25
MARKETABLE U.S. TREASURY BONDS A N D NOTES
Transactions
and
Discount
Rates
A65
Foreign Holdings and Transactions
Millions of dollars
1983
1981
Country or area
1983
1982
Jan.Nov.
May
June
July
Aug.
Sept/
Oct.
Nov.P
Holdings (end of period)1
1 Estimated total2
70,249
85,179
89,513
91,070
88,788
87,439
88,617
91,046
89,879
2 Foreign countries2
64,565
80,596
84,351
84,887
83,571
82,746
82,719
84,416
84,123
3 Europe2
4 Belgium-Luxembourg
5 Germany2
6 Netherlands
7 Sweden
8 Switzerland2
9 United Kingdom
10 Other Western Europe
11 Eastern Europe
12 Canada
24,012
543
11,861
1,991
643
846
6,709
1,419
0
514
29,284
447
14,841
2,754
677
1,540
6,549
2,476
0
602
33,628
-76
16,954
3,255
680
914
8,048
3,855
0
874
33,638
-68
16,877
3,251
665
877
8,233
3,803
0
982
33,081
99
16,314
3,262
684
855
8,235
3,631
0
1,057
32,996
95
16,119
3,234
644
965
8,270
3,669
0
1,087
33,370
58
16,155
3,034
666
1,087
8,289
4,081
0
1,062
34,415
18
16,570
2,987
714
1,177
8,629
4,321
0
1,264
35,098
2
17,092
3,048
758
1,064
8,667
4,467
0
1,225
13
14
15
16
17
18
19
20
736
286
319
131
38,671
10,780
631
2
1,076
188
656
232
49,502
11,578
77
55
1,039
72
775
192
48,686
12,130
79
45
1,041
72
773
196
49,094
12,592
79
53
886
62
636
188
48,394
12,763
79
74
800
62
622
116
47,690
13,007
79
94
774
65
631
78
47,387
13,210
79
48
695
66
540
89
47,908
13,446
79
56
914
64
674
176
46,764
13,600
79
43
5,684
5,638
1
4,583
4,186
6
5,162
4,514
6
6,183
5,372
6
5,217
4,500
6
4,693
4,086
6
5,898
5,421
6
6,630
6,094
6
5,756
5,030
0
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
Transactions (net purchases, or sales ( - ) during period)
2
24 Total
12,699
14,930
4,706
1,960
1,557
-2,281
-1,350
1,178
2,429
-1,161
25 Foreign countries2
26 Official institutions
27 Other foreign2
28 Nonmonetary international and regional organizations
11,604
11,730
-126
1,095
16,031
14,508
1,518
-1,096
3,527
1,445
2,085
1,180
245
34
211
1,716
536
418
118
1,021
-1,316
-914
-400
-966
-826
-885
59
-523
-26
5
-31
1,205
1,697
571
1,126
732
-293
-689
395
-867
MEMO: Oil-exporting countries
29 Middle4 East3
30 Africa
11,156
-289
7,534
-552
-5,324
-1
-566
-1
-277
0
-172
0
-1,764
0
-305
0
-400
0
-929
0
1. Estimated official and private holdings of marketable U.S. Treasury securities with an original maturity of more than 1 year. Data are based on a benchmark
survey of holdings as of Jan. 31,1971, and monthly transactions reports. Excludes
nonmarketable U.S. Treasury bonds and notes held by official institutions of
foreign countries.
3.26
2. Beginning December 1978, 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.
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Rate on Dec. 31, 1983
Country
Austria..
Belgium .
Brazil...
Canada..
Denmark
Percent
3.75
9.0
49.0
10.04
7.5
Rate on Dec. 31, 1983
Country
Month
effective
Mar. 1983
June 1983
Mar. 1981
Dec. 1983
Apr. 1983
France1
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
Percent
Month
effective
11.75
4.0
17.0
5.0
5.0
Dec. 1983
Mar. 1983
Apr. 1983
Oct. 1983
Sept. 1983
Rate on Dec. 31, 1983
Country
Norway
Switzerland
United Kingdom2.
Venezuela
Percent
Month
effective
8.0
4.0
June 1979
Mar. 1983
Sept. 1982
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.
A66
3.27
International Statistics • January 1984
FOREIGN SHORT-TERM INTEREST RATES
Percent per annum, averages of daily figures
1983
Country, or type
1981
1982
1983
July
June
1
2
3
4
5
6
7
8
9
10
Aug.
Sept.
Oct.
Nov.
Dec.
Eurodollars
United Kingdom
Canada
Germany
Switzerland
16.79
13.86
18.84
12.05
9.15
12.24
12.21
14.38
8.81
5.04
9.57
10.06
9.48
5.73
4.11
9.66
9.91
9.41
5.52
4.98
10.00
9.84
9.42
5.54
4.77
10.27
9.83
9.49
5.66
4.61
9.82
9.63
9.35
5.83
4.40
9.54
9.34
9.31
6.13
4.07
9.79
9.26
9.40
6.26
4.11
10.08
9.34
9.83
6.43
4.29
Netherlands
France
11.52
15.28
19.98
15.28
7.58
8.26
14.61
19.99
14.10
6.84
5.58
12.44
18.95
10.51
6.49
5.81
12.59
17.72
9.73
6.46
5.58
12.33
17.50
9.08
6.47
6.03
12.33
17.50
9.25
6.52
6.15
12.42
17.42
9.25
6.68
6.07
12.42
17.51
9.44
6.52
6.17
12.31
17.71
9.89
6.35
6.20
12.16
17.75
10.50
6.45
Belgium
Japan
NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate.
3.28
FOREIGN EXCHANGE RATES
Currency units per dollar
1983
Country/currency
1981
1982
1983
July
Aug.
Sept.
Oct.
Nov.
Dec.
1
7
3
4
5
6
7
8
9
10
Argentina/peso
Australia/dollar1
Austria/schilling
Belgium/franc
Brazil/cruzeiro
Canada/dollar
Chile/peso
China, P.R./yuan
Colombia/peso
Denmark/krone
n.a.
20985.00
101.65
114.95
17.060
15.948
37.194
45.780
179.22
92.374
1.2344
1.1990
n.a.
51.118
1.8978
1.7031
64.071
n.a.
7.1350
8.3443
8.59
90.14
17.968
51.121
573.27
1.2325
79.350
1.9809
78.563
9.1483
8.85
87.54
18.208
51.862
571.73
1.2323
78.987
1.9966
78.997
9.3142
8.94
87.93
18.799
53.609
643.34
1.2338
80.011
1.9843
80.707
9.6308
11.22
88.77
18.754
53.841
701.38
1.2326
81.767
1.9867
82.494
9.5926
11.65
91.37
18.305
53.034
784.35
1.2320
83.710
1.9664
84.196
9.4172
11.65
91.59
18.900
54.538
870.21
1.2367
85.600
1.9940
85.938
9.6791
16.73
90.04
19.383
55.939
943.43
1.2469
86.557
1.9920
87.173
9.9530
11
1?
13
14
15
16
17
18
19
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee
Indonesia/rupiah
Ireland/pound1
Israel/shekel
4.3128
5.4396
2.2631
n.a.
5.5678
8.6807
n.a.
161.32
n.a.
4.8086
6.5793
2.428
66.872
6.0697
9.4846
660.43
142.05
24.407
5.5636
7.6203
2.5539
87.895
7.2569
10.1040
911.31
124.81
55.865
5.5863
7.7878
2.5914
84.677
7.1678
10.0875
978.57
121.87
49.614
5.7063
8.0442
2.6736
89.217
7.4416
10.187
984.09
117.99
55.949
5.7057
8.0598
2.6679
92.837
8.0079
10.200
986.24
117.41
60.059
5.6390
7.9526
2.6032
92.968
8.0947
10.229
984.12
119.15
77.808
5.7468
8.1646
2.6846
96.229
7.8120
10.378
988.84
115.85
89.344
5.8515
8.3839
2.7500
98.815
7.8044
10.4895
994.62
112.91
100.599
20
71
22
23
24
2.5
26
77
28
29
Italy/lira
Japan/yen
Malaysia/ringgit
Mexico/peso
Netherlands/guilder 1
New Zealand/dollar
Norway/krone
Peru/sol
Philippines/peso
Portugal/escudo
1138.60
220.63
2.3048
24.547
2.4998
86.848
5.7430
n.a.
7.8113
61.739
1354.00
249.06
2.3395
72.990
2.6719
75.101
6.4567
694.59
8.5324
80.101
1519.30
237.55
2.3204
155.01
2.8543
66.790
7.3012
1610.20
11.0940
111.610
1533.41
240.52
2.3319
149.36
2.8985
65.383
7.3280
1645.99
11.050
119.03
1589.74
244.46
2.3523
151.59
2.9912
65.100
7.4641
1853.18
11.050
123.03
1602.62
242.35
2.3506
152.20
2.9844
65.316
7.4271
1995.33
11.050
124.41
1582.81
232.89
2.3451
157.18
2.9206
66.162
7.3244
2074.82
13.750
124.41
1625.79
235.03
2.3450
162.36
3.0078
65.854
7.4696
2131.13
14.050
127.82
1666.88
234.46
2.3407
164.84
3.0856
65.120
7.7237
2213.73
14.050
131.91
30
31
37
33
34
35
36
37
38
39
40
Singapore/dollar
South Africa/rand1
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/Dollar
Thailand/baht
United Kingdom/pound1
Venezuela/bolivar
2.1053
114.77
n.a.
92.396
18.967
5.0659
1.9674
n.a.
21.731
202.43
4.2781
2.1406
92.297
731.93
110.09
20.756
6.2838
2.0327
n.a.
23.014
174.80
4.2981
2.1136
89.85
776.04
143.500
23.510
7.6717
2.1006
n.a.
22.991
151.59
10.6840
2.1294
91.19
779.88
147.973
24.082
7.6936
2.1184
n.a.
22.990
152.73
12.595
2.1416
89.55
787.19
151.302
24.257
7.8585
2.1632
n.a.
22.990
150.26
15.600
2.1417
89.86
790.83
152.022
24.397
7.8773
2.1623
n.a.
22.990
149.86
13.833
2.1350
88.82
791.37
151.30
24.410
7.7844
2.1122
39.420
22.990
149.69
13.088
2.1334
84.23
796.32
154.66
24.572
7.9201
2.1701
38.780
22.990
147.66
12.782
2.1317
82.15
799.23
158.01
24.767
8.0608
2.1983
39.613
22.992
143.38
12.834
102.94
116.57
125.34
126.62
129.77
129.74
127.50
130.26
132.84
MEMO:
United States/dollar2
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.
NOTE. Averages of certified noon buying rates in New York for cable tranfers.
A67
Guide to Tabular Presentation,
Statistical Releases, and Special Tables
GUIDE
TO TABULAR
Symbols
c
e
p
r
*
and
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
List Published
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
Semiannually,
with Latest
Bulletin
Reference
Issue
Anticipated schedule of release dates for periodic releases
SPECIAL
Published
Assets
Assets
Assets
Assets
Assets
Assets
Assets
Assets
and
and
and
and
and
and
and
and
Page
December 1983
A84
TABLES
Irregularly,
liabilities
liabilities
liabilities
liabilities
liabilities
liabilities
liabilities
liabilities
of
of
of
of
of
of
of
of
with Latest
commercial banks,
commercial banks,
commercial banks,
commercial banks,
U.S. branches and
U.S. branches and
U.S. branches and
U.S. branches and
Bulletin
Reference
September 30, 1982
December 31, 1982
March 31, 1983
June 30, 1983
agencies of foreign banks,
agencies of foreign banks,
agencies of foreign banks,
agencies of foreign banks,
September 30, 1982
December 31, 1982
March 31, 1983
June 30, 1983
January
April
August
December
January
April
August
December
1983
1983
1983
1983
1983
1983
1983
1983
A70
A70
A70
A68
A76
A76
A76
A74
A68
Federal Reserve Board of Governors
PRESTON M A R T I N ,
Chairman
Vice Chairman
OFFICE OF BOARD
MEMBERS
P A U L A . VOLCKER,
H E N R Y C . WALLICH
J. CHARLES PARTEE
OFFICE OF STAFF DIRECTOR
MONETARY AND FINANCIAL
JOSEPH R. COYNE, Assistant
to the Board
DONALD J. WINN, Assistant
to the Board
STEVEN M . ROBERTS, Assistant
to the
Chairman
STEPHEN H . AXILROD, Staff
STANLEY J. SIGEL, Assistant
DIVISION
Counsel
J. VIRGIL MATTINGLY, JR., Associate General Counsel
GILBERT T. SCHWARTZ, Associate General Counsel
RICHARD M. ASHTON, Assistant General Counsel
NANCY P. JACKLIN, Assistant General Counsel
OFFICE OF THE
OF RESEARCH
JAMES L . KICHLINE,
MARY ELLEN A . BROWN, Assistant
to the General
SECRETARY
WILLIAM W . WILES,
Secretary
BARBARA R. LOWREY, Associate
Secretary
JAMES MCAFEE, Associate
Secretary
Counsel
AND
Director
DIVISION OF BANKING
SUPERVISION AND
REGULATION
Director
Director
FREDERICK R. DAHL, Associate
Director
DON E. KLINE, Associate
Director
JACK M. EGERTSON, Assistant
Director
ROBERT A . JACOBSEN, Assistant
ROBERT S. PLOTKIN, Assistant
THOMAS A . SIDMAN, Assistant
SIDNEY M . SUSSAN, Assistant
SAMUEL H . TALLEY, Assistant
LAURA M. HOMER, Securities
STATISTICS
DAVID E. LINDSEY, Deputy Associate
Director
FREDERICK M. STRUBLE, Deputy Associate
Director
HELMUT F. WENDEL, Deputy Associate
Director
MARTHA BETHEA, Assistant
Director
ROBERT M. FISHER, Assistant
Director
SUSAN J. LEPPER, Assistant
Director
THOMAS D. SIMPSON, Assistant
Director
LAWRENCE SLIFMAN, Assistant
Director
STEPHEN P. TAYLOR, Assistant
Director
Director
Director
(Administration)
JERAULD C. KLUCKMAN, Associate
Director
GLENN E. LONEY, Assistant
Director
DOLORES S. SMITH, Assistant
Director
WILLIAM TAYLOR, Deputy
to the Board
Director
LEVON H. GARABEDIAN, Assistant
DIVISION OF
CONSUMER
AND COMMUNITY
AFFAIRS
JOHN E . R Y A N ,
Board
EDWARD C. ETTIN, Deputy
Director
MICHAEL J. PRELL, Deputy
Director
JOSEPH S. ZEISEL, Deputy
Director
JARED J. ENZLER, Associate
Director
ELEANOR J. STOCKWELL, Associate
Director
PETER A. TINSLEY, Assistant
GRIFFITH L . G A R W O O D ,
Director
to the
NORMAND R.V. BERNARD, Special Assistant
DIVISION
MICHAEL BRADFIELD, General
Director
DONALD L. KOHN, Deputy Staff
FRANK O'BRIEN, JR., Deputy Assistant to the Board
ANTHONY F. COLE, Special Assistant to the Board
WILLIAM R. JONES, Special Assistant to the Board
NAOMI P. SALUS, Special Assistant to the Board
LEGAL
FOR
POLICY
Director
Director
Director
Director
Director
Credit Officer
DIVISION
OF INTERNATIONAL
EDWIN M . TRUMAN,
FINANCE
Director
ROBERT F. GEMMILL, Senior Associate
Director
CHARLES J. SIEGMAN, Senior Associate
Director
LARRY J. PROMISEL, Associate
Director
DALE W. HENDERSON, Deputy Associate
Director
SAMUEL PIZER, Staff
Adviser
RALPH W . SMITH, JR., Assistant
Director
A69
and Official Staff
N A N C Y H . TEETERS
L Y L E E . GRAMLEY
EMMETT J. RICE
OFFICE OF
STAFF DIRECTOR
FOR
S. DAVID FROST, Staff
MANAGEMENT
Director
EDWARD T. MULRENIN, Assistant Staff Director
STEPHEN R. MALPHRUS, Assistant Staff Director
for Office Automation and Technology
DIVISION
OF DATA
PROCESSING
CHARLES L . HAMPTON,
Director
OFFICE OF STAFF DIRECTOR
FOR
FEDERAL RESERVE BANK
ACTIVITIES
THEODORE E. ALLISON, Staff Director
JOSEPH W. DANIELS, SR., Equal Employment
Programs Adviser
DIVISION OF FEDERAL
BANK
OPERATIONS
RICHARD J. MANASSERI, Assistant
Director
WILLIAM C. SCHNEIDER, JR., Assistant
Director
ROBERT J. ZEMEL, Assistant
Director
ELLIOTT C. MCENTEE, Associate
DAVID L. ROBINSON, Associate
* JOHN F. SOBALA, Assistant
OF
PERSONNEL
DAVID L . SHANNON,
Director
JOHN R. WEIS, Assistant
Director
CHARLES W. WOOD, Assistant
OFFICE OF THE
CONTROLLER
GEORGE E . LIVINGSTON,
BRENT L. BOWEN, Assistant
DIVISION
Director
OF SUPPORT
DONALD E . ANDERSON,
Controller
Controller
SERVICES
Director
ROBERT E. FRAZIER, Associate
Director
WALTER W . KREIMANN, Associate
Director
*On loan from the Federal Reserve Bank of N e w York.
Director
Director
Director
C. WILLIAM SCHLEICHER, JR., Associate
Director
WALTER ALTHAUSEN, Assistant
Director
CHARLES W . BENNETT, Assistant
Director
ANNE M. DEBEER, Assistant
Director
JACK DENNIS, JR., Assistant
Director
EARL G. HAMILTON, Assistant
DIVISION
RESERVE
CLYDE H . FARNSWORTH, JR.,
BRUCE M. BEARDSLEY, Deputy Director
GLENN L. CUMMINS, Assistant
Director
NEAL H. HILLERMAN, Assistant
Director
ELIZABETH A. JOHNSON, Assistant
Director
Opportunity
Director
Director
A70
Federal Reserve Bulletin • January 1984
Federal Open Market Committee
FEDERAL
OPEN MARKET
COMMITTEE
PAUL A . VOLCKER, Chairman
A N T H O N Y M . SOLOMON, Vice
LYLE E . GRAMLEY
PRESTON MARTIN
EMMETT J. RICE
ROGER G U F F E Y
SILAS K E E H N
FRANK E . MORRIS
J. CHARLES PARTEE
THEODORE H . ROBERTS
N A N C Y H . TEETERS
HENRY C . WALLICH
STEPHEN H. AXILROD, Staff Director and
Secretary
NORMAND R . V . BERNARD, Assistant
Secretary
NANCY M. STEELE, Deputy Assistant
Secretary
MICHAEL BRADFIELD, General
Counsel
JAMES H. OLTMAN, Deputy General
JAMES L . KICHLINE,
Counsel
Economist
EDWIN M. TRUMAN, Economist
ANATOL BALBACH, Associate
(International)
Economist
RICHARD G. DAVIS, Associate
Economist
THOMAS E. DAVIS, Associate
Economist
ROBERT EISENMENGER, Associate
Economist
EDWARD C. ETTIN, Associate
Economist
MICHAEL J. PRELL, Associate
Economist
KARL A . SCHELD, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
JOSEPH S. ZEISEL, Associate
Economist
PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account
SAM Y. CROSS, Manager for Foreign Operations, System Open Market Account
FEDERAL
ADVISORY
COUNCIL
ROBERT L. NEWELL, First District
LEWIS T. PRESTON, Second District
RAYMOND J. DEMPSEY, Third District
JOHN G. MCCOY, Fourth District
VINCENT C. BURKE, JR., Fifth District
PHILIP F. SEARLE, Sixth District
ROGER E. ANDERSON, Seventh District
WILLIAM H. BOWEN, Eighth District
E. PETER GILLETTE, JR., Ninth District
N. BERNE HART, Tenth District
ELVIS L. MASON, Eleventh District
JOSEPH J. PINOLA, Twelfth District
HERBERT V . PROCHNOW,
WILLIAM J. KORSVIK, Associate
Secretary
Secretary
Chairman
A71
and Advisory Councils
CONSUMER
ADVISORY
COUNCIL
SUSAN PIERSON D E W I T T , C h i c a g o , I l l i n o i s ,
Chairman
WILLIAM J. O'CONNOR, JR., Buffalo, New York, Vice
ARTHUR F. BOUTON, Little Rock, Arkansas
JAMES G . BOYLE, A u s t i n , T e x a s
GERALD R. CHRISTENSEN, Salt Lake City, Utah
THOMAS L . CLARK, J R . , N e w Y o r k , N e w Y o r k
JEAN A . CROCKETT, P h i l a d e l p h i a , P e n n s y l v a n i a
JOSEPH N. CUGINI, Westerly, Rhode Island
MEREDITH FERNSTROM, N e w Y o r k , N e w Y o r k
ALLEN J. FISHBEIN, W a s h i n g t o n , D . C .
E.C.A. FORSBERG, SR., Atlanta, Georgia
LUTHER R . GATLING, N e w Y o r k , N e w Y o r k
RICHARD F. HALLIBURTON, Kansas City, Missouri
CHARLES C . HOLT, A u s t i n , T e x a s
GEORGE S . IRVIN, D e n v e r , C o l o r a d o
HARRY N . JACKSON, M i n n e a p o l i s , M i n n e s o t a
THRIFT INSTITUTIONS
ADVISORY
Chairman
K E N N E T H V . LARKIN, S a n F r a n c i s c o , C a l i f o r n i a
TIMOTHY D . MARRINAN, M i n n e a p o l i s , M i n n e s o t a
STANLEY L . MULARZ, C h i c a g o , I l l i n o i s
WILLARD P . OGBURN, B o s t o n , M a s s a c h u s e t t s
ELVA QUIJANO, S a n A n t o n i o , T e x a s
JANET J. RATHE, P o r t l a n d , O r e g o n
JANET M. SCACCIOTTI, Providence, Rhode Island
G L E N D A G . SLOANE, W a s h i n g t o n , D . C .
HENRY J. SOMMER, P h i l a d e l p h i a , P e n n s y l v a n i a
N A N C Y Z . SPILLMAN, L o s A n g e l e s , C a l i f o r n i a
W I N N I E F . TAYLOR, G a i n e s v i l l e , F l o r i d a
MICHAEL M . V A N BUSKIRK, C o l u m b u s , O h i o
CLINTON W A R N E , C l e v e l a n d , O h i o
FREDERICK T . WEIMER, C h i c a g o , I l l i n o i s
COUNCIL
HARRY W. ALBRIGHT, New York, New York, President
THOMAS R. BOMAR, Miami, Florida, Vice President
JAMES A. ALIBER, Detroit, Michigan
NORMAN M. JONES, Fargo, North Dakota
G E N E R . ARTEMENKO, C h i c a g o , I l l i n o i s
ROBERT R . MASTERTON, P o r t l a n d , M a i n e
JOHN R. EPPINGER, Villanova, Pennsylvania
MARY A. GRIGSBY, Houston, Texas
JAMES F. MONTGOMERY, Beverly Hills, California
FRED A. PARKER, Monroe, North Carolina
A72
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A73
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REMARKS BY CHAIRMAN P A U L A . VOLCKER, AT A N N U A L
H U M A N RELATIONS A W A R D D I N N E R , D e c e m b e r 1 9 8 2 .
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CREDIT CARDS IN THE U . S . ECONOMY: THEIR IMPACT ON
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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.
113. BELOW THE BOTTOM L I N E : T H E U S E OF CONTINGENCIES A N D COMMITMENTS BY COMMERCIAL B A N K S , b y
Benjamin Wolkowitz and others. Jan. 1982. 186 pp.
1 1 4 . MULTIBANK HOLDING COMPANIES: RECENT E V I DENCE ON COMPETITION AND PERFORMANCE IN BANK-
ING MARKETS, by Timothy J. Curry and John T. Rose.
Jan. 1982. 9 pp.
115. COSTS, SCALE ECONOMIES, COMPETITION, A N D PRODUCT M I X IN THE U . S . PAYMENTS MECHANISM, b y
David B. Humphrey. Apr. 1982. 18 pp.
116. DIVISIA MONETARY AGGREGATES:
COMPILATION,
D A T A , A N D HISTORICAL BEHAVIOR, b y W i l l i a m A .
Barnett and Paul A. Spindt. May 1982. 82 pp.
117. T H E COMMUNITY REINVESTMENT A C T A N D CREDIT
ALLOCATION, by Glenn Canner. June 1982. 8 pp.
118. INTEREST
RATES
A N D TERMS
ON
CONSTRUCTION
LOANS AT COMMERCIAL BANKS, b y D a v i d F . S e i d e r s .
July 1982. 14 pp.
119. STRUCTURE-PERFORMANCE STUDIES IN BANKING: A N
U P D A T E D SUMMARY A N D EVALUATION, b y S t e p h e n
A. Rhoades. Aug. 1982. 15 pp.
1 2 0 . FOREIGN SUBSIDIARIES OF U . S . BANKING ORGANIZA-
CONSUMER EDUCATION
PAMPHLETS
Short pamphlets suitable for classroom use. Multiple
available without charge.
TIONS, by James V. Houpt and Michael G. Martinson.
Oct. 1982. 18 pp.
copies
121. REDLINING: RESEARCH A N D FEDERAL
LEGISLATIVE
RESPONSE, by Glenn B. Canner. Oct. 1982. 20 pp.
1 2 2 . B A N K CAPITAL TRENDS A N D FINANCING, b y S a m u e l
Alice in Debitland
Consumer Handbook to Credit Protection Laws
The Equal Credit Opportunity Act and . . . Age
The Equal Credit Opportunity Act and . . . Credit Rights in
Housing
The Equal Credit Opportunity Act and . . . Doctors, Lawyers, Small Retailers, and Others Who May Provide Incidental Credit
The Equal Credit Opportunity Act and . . . Women
Fair Credit Billing
Federal Reserve Glossary
Guide to Federal Reserve Regulations
How to File A Consumer Credit Complaint
If You Borrow To Buy Stock
If You Use A Credit Card
Instructional Materials of the Federal Reserve System
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
Monetary Control Act of 1980
Organization and Advisory Committees
H. Talley. Feb. 1983. 19 pp. Out of print.
123. FINANCIAL TRANSACTIONS WITHIN B A N K
HOLDING
COMPANIES, by John T. Rose and Samuel H. Talley.
May 1983. 11 pp.
124. INTERNATIONAL B A N K I N G FACILITIES A N D THE E U -
RODOLLAR MARKET, by Henry S. Terrell and Rodney
H. Mills. August 1983. 14 pp.
125. SEASONAL ADJUSTMENT OF THE WEEKLY MONETARY
AGGREGATES: A M O D E L - B A S E D APPROACH, b y D a v i d
A. Pierce, Michael R. Grape,
Cleveland. August 1983. 23 pp.
and William P.
126. DEFINITION A N D MEASUREMENT OF EXCHANGE MAR-
KET INTERVENTION, by Donald B. Adams and Dale W.
Henderson. August 1983. 5 pp.
* 1 2 7 . U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: J A N U A R Y - M A R C H 1975, b y M a r g a r e t L .
Greene.
* 1 2 8 . U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION:
SEPTEMBER
1977-OcTOBER
1981,
by
Margaret L. Greene.
* 1 2 9 . U . S . EXPERIENCE WITH EXCHANGE MARKET INTER-
VENTION: OCTOBER 1980-OcTOBER 1981, by Margaret
L. Greene.
A74
130. EFFECTS OF EXCHANGE RATE VARIABILITY ON INTERNATIONAL TRADE A N D OTHER ECONOMIC VARIABLES:
A REVIEW OF THE LITERATURE, by Victoria S. Farrell
with Dean A. DeRosa and T. Ashby McCown. January
1984. 21 pp.
131. CALCULATIONS OF PROFITABILITY FOR U . S . D O L L A R DEUTSCHE MARK INTERVENTION, b y L a u r e n c e R .
Jacobson. October 1983. 8 pp.
132. TIME-SERIES STUDIES OF THE RELATIONSHIP BETWEEN EXCHANGE RATES A N D INTERVENTION: A
REVIEW OF THE TECHNIQUES A N D LITERATURE, b y
Kenneth Rogoff. October 1983. 15 pp.
133. RELATIONSHIPS AMONG EXCHANGE RATES, INTERVENTION, AND INTEREST RATES: A N EMPIRICAL IN-
VESTIGATION, by Bonnie E. Loopesko.
1983. 20 pp.
November
1 3 4 . SMALL EMPIRICAL MODELS OF EXCHANGE MARKET
INTERVENTION: A REVIEW OF THE LITERATURE, b y
Ralph W. Tryon. October 1983. 14 pp.
* 1 3 5 . SMALL EMPIRICAL MODELS OF EXCHANGE MARKET
INTERVENTION:
APPLICATIONS
TO
CANADA,
GERMANY, AND JAPAN, by Deborah J. Danker,
Richard A. Haas, Dale W. Henderson, Steven A.
Symansky, and Ralph W. Tryon.
T h e availability of these studies will be announced in a
forthcoming BULLETIN.
ARTICLES
REPRINTS OF BULLETIN
Most of the articles reprinted do not exceed 12 pages.
Survey of Finance Companies. 1980. 5/81.
Bank Lending in Developing Countries. 9/81.
The Commercial Paper Market since the Mid-Seventies. 6/82.
Applying the Theory of Probable Future Competition. 9/82.
International Banking Facilities. 10/82.
U.S. International Transactions in 1982. 4/83.
N e w Federal Reserve Measures of Capacity and Capacity
Utilization. 7/83.
Foreign Experience with Targets for Money Growth. 10/83.
Intervention in Foreign Exchange Markets: A Summary of
Ten StaflF Studies. 11/83.
A75
Index to Statistical Tables
References are to pages A3 through A66 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers, 9, 24, 26
Agricultural loans, commercial banks, 18, 19, 20, 25
Assets and liabilities (See also Foreigners)
Banks, by classes, 17-20
Domestic finance companies, 37
Federal Reserve Banks, 10
Foreign banks, U.S. branches and agencies, 22
Nonfinancial corporations, 36
Savings institutions, 28
Automobiles
Consumer installment credit, 40, 41
Production, 46, 47
BANKERS acceptances, 9, 24, 26
Bankers balances, 17-20 (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 34
Rates, 3
Branch banks, 14, 21, 54
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 36
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 44
Capital accounts
Banks, by classes, 17
Federal Reserve Banks, 10
Central banks, discount rates, 65
Certificates of deposit, 21, 26
Commercial and industrial loans
Commercial banks, 15, 21, 25
Weekly reporting banks, 18-22
Commercial banks
Assets and liabilities, 17-20
Business loans, 25
Commercial and industrial loans, 15, 21, 22, 25
Consumer loans held, by type, and terms, 40, 41
Loans sold outright, 20
Nondeposit fund, 16
Number, by classes, 17
Real estate mortgages held, by holder and property, 39
Time and savings deposits, 3
Commercial paper, 3, 24, 26, 37
Condition statements (See Assets and liabilites)
Construction, 44, 48
Consumer installment credit, 40, 41
Consumer prices, 44, 49
Consumption expenditures, 50, 51
Corporations
Profits and their distribution, 35
Security issues, 34, 64
Cost of living (See Consumer prices)
Credit unions, 28, 40 (See also Thrift institutions)
Currency and coin, 17
Currency in circulation, 4, 13
Customer credit, stock market, 27
DEBITS to deposit accounts, 14
Debt (See specific types of debt or
Demand deposits
Adjusted, commercial banks, 14
Banks, by classes, 17-21
securities)
Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 23
Turnover, 14
Depository institutions
Reserve requirements, 7
Reserves and related items, 3, 4, 5, 12
Deposits (See also specific types)
Banks, by classes, 3, 17-21, 28
Federal Reserve Banks, 4, 10
Turnover, 14
Discount rates at Reserve Banks and at foreign central
banks (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
EMPLOYMENT, 44, 45
Eurodollars, 26
FARM mortgage loans, 39
Federal agency obligations, 4, 9, 10, 11, 32
Federal credit agencies, 33
Federal finance
Debt subject to statutory limitation and types and
ownership of gross debt, 31
Receipts and outlays, 29, 30
Treasury financing of surplus, or deficit, 29
Treasury operating balance, 29
Federal Financing Bank, 29, 33
Federal funds, 3, 5, 16, 18, 19, 20, 22, 26, 29
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, 31
Federal Reserve credit, 4, 5, 10, 11
Federal Reserve notes, 10
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 37
Business credit, 37
Loans, 18, 19, 40, 41
Paper, 24, 26
Financial institutions
Loans to, 18, 19, 20, 22
Selected assets and liabilities, 28
Float, 4
Flow of funds, 42, 43
Foreign banks, assets and liabilities of U.S. branches and
agencies, 22
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4, 10, 18, 19, 20
Foreign exchange rates, 66
Foreign trade, 53
Foreigners
Claims on, 54, 56, 59, 60, 61, 63
Liabilities to, 20, 53, 54-58, 62, 64, 65
A76
GOLD
Certificate account, 10
Stock, 4, 53
Government National Mortgage Association, 33, 38, 39
Gross national product, 50, 51
HOUSING, new and existing units, 48
INCOME, personal and national, 44, 50, 51
Industrial production, 44, 46
Installment loans, 40, 41
Insurance companies, 28, 31, 39
Interbank loans and deposits, 17
Interest rates
Bonds, 3
Business loans of banks, 25
Federal Reserve Banks, 3, 6
Foreign central banks and foreign countries, 65, 66
Money and capital markets, 3, 26
Mortgages, 3, 38
Prime rate, commercial banks, 24
Time and savings deposits, 8
International capital transactions of United States, 52-65
International organizations, 56, 57-59, 62-65
Inventories, 50
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 17-20, 28
Commercial banks, 3, 15, 17-20, 21, 39
Federal Reserve Banks, 10, 11
Savings institutions, 28, 39
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 17-20
Commercial banks, 3, 15, 17-20, 21, 25
Federal Reserve Banks, 4, 5, 6, 10, 11
Insured or guaranteed by United States, 38, 39
Savings institutions, 28, 39
MANUFACTURING
Capacity utilization, 44
Production, 44, 47
Margin requirements, 27
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 5
Reserve requirements, 7
Mining production, 47
Mobile homes shipped, 48
Monetary and credit aggregates, 3, 12
Money and capital market rates (See Interest rates)
Money stock measures and components, 3, 13
Mortgages (See Real estate loans)
Mutual funds (See Investment companies)
Mutual savings banks, 8, 18-20, 28, 31, 39, 40 (See also
Thrift institutions)
NATIONAL defense outlays, 30
National income, 50
OPEN market transactions, 9
PERSONAL income, 51
Prices
Consumer and producer, 44, 49
Stock market, 27
Prime rate, commercial banks, 24
Producer prices, 44, 49
Production, 44, 46
Profits, corporate, 35
REAL estate loans
Banks, by classes, 15, 18-20, 39
Rates, terms, yields, and activity, 3, 38
Savings institutions, 28
Type of holder and property mortgaged, 39
Repurchase agreements and federal funds, 5, 18-20
Reserve requirements, 7
Reserves
Commercial banks, 17
Depository institutions, 3, 4, 5, 12
Federal Reserve Banks, 10
U.S. reserve assets, 53
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, 28, 39, 40, 42 (See also
Thrift institutions)
Savings deposits (See Time and savings deposits)
Securities (See specific types)
Federal and federally sponsored credit
agencies, 33
Foreign transactions, 64
New issues, 34
Prices, 27
Special drawing rights, 4, 10, 52, 53
State and local governments
Deposits, 18-20
Holdings of U.S. government securities, 31
New security issues, 34
Ownership of securities issued by, 18, 19, 20, 28
Rates on securities, 3
Stock market, 27
Stocks (See also Securities)
New issues, 34
Prices, 27
Student Loan Marketing Association, 33
TAX receipts, federal, 30
Thrift institutions, 3 (See also Credit unions, Mutual
savings banks, and Savings and loan associations)
Time and savings deposits, 3, 8, 13, 16, 17-21
Trade, foreign, 53
Treasury currency, Treasury cash, 4
Treasury deposits, 4, 10, 29
Treasury operating balance, 29
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 17, 18, 19, 20
Treasury deposits at Reserve Banks, 4, 10, 29
U.S. government securities
Bank holdings, 16, 17-20, 22, 31
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 4, 10, 11, 31
Foreign and international holdings and transactions, 10,
31, 65
Open market transactions, 9
Outstanding, by type and holder, 28, 31
Rates, 3, 26
U.S. international transactions, 52-65
Utilities, production, 47
VETERANS Administration, 38, 39
WEEKLY reporting banks, 18-22
Wholesale (producer) prices, 44, 49
YIELDS (See Interest rates)
A77
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
Robert P. Henderson
Thomas I. Atkins
Frank ETMorris
James A. Mcintosh
NEW YORK*
10045
John Brademas
Gertrude G. Michelson
M. Jane Dickman
Anthony M. Solomon
Thomas M. Timlen
Buffalo
14240
John T. Keane
PHILADELPHIA
19105
Robert M. Landis, Esq.
Nevius M. Curtis
Edward G. Boehne
Richard L. Smoot
CLEVELAND*
44101
William H. Knoell
E. Mandell de Windt
Clifford R. Meyer
Milton G. Hulme, Jr.
Karen N. Horn
William H. Hendricks
William S. Lee, III
Leroy T. Canoles
Edward H. Covell
Henry Ponder
Robert P. Black
Jimmie R. Monhollon
John H. Weitnauer, Jr.
Bradley Currey, Jr.
Samuel R. Hill, Jr.
Joan W. Stein
Eugene E. Cohen
Robert C.H. Mathews, Jr.
Roosevelt Steptoe
Robert P. Forrestal
Vacancy
Stanton R. Cook
Edward F. Brabec
Russell G. Mawby
Silas Keehn
Daniel M. Doyle
W.L. Hadley Griffin
Mary P. Holt
Richard V. Warner
William C. Ballard, Jr.
G. Rives Neblett
Theodore H. Roberts
Joseph P. Garbarini
William G. Phillips
John B. Davis, Jr.
Gene J. Etchart
E. Gerald Corrigan
Thomas E. Gainor
Doris M. Drury
Irvine O. Hockaday, Jr.
James E. Nielson
Christine H. Anthony
Robert G. Lueder
Roger Guffey
Henry R. Czerwinski
Robert D. Rogers
John V. James
Chester J. Kesey
Paul N. Howell
Carlos A. Zuniga
Robert H. Boykin
William H. Wallace
Caroline L. Ahmanson
Alan C. Furth
Bruce M. Schwaegler
John C. Hampton
Wendell J. Ashton
John W. Ellis
John J. Balles
Richard T. Griffith
Cincinnati
Pittsburgh
45201
15230
RICHMOND*
23219
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30301
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
Robert E. Showalter
Harold J. Swart
Robert D. McTeer, Jr.
Albert D. Tinkelenberg
John G. Stoides
Fred R. HenCharles D. East
Patrick K. Barron
Jeffrey J. Wells
James D. Hawkins
William C. Conrad
John F. Breen
James E. Conrad
Randall C. Sumner
Robert F. McNellis
Wayne W. Martin
William G. Evans
Robert D. Hamilton
Joel L. Koonce, Jr.
J.Z. Rowe
Thomas H. Robertson
Richard C. Dunn
Angelo S. Carella
A. Grant Holman
Gerald R. Kelly
*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, N e w Jersey 07016;
Jericho, New 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.
A78
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
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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
Publications of Interest
FEDERAL
RESERVE
CONSUMER
CREDIT
PUBLICATIONS
The Federal Reserve Board publishes a series of
pamphlets covering individual credit laws and topics,
as pictured below. The series includes such subjects as
how the Equal Credit Opportunity Act protects women against discrimination in their credit dealings, how
to use a credit card, and how to use Truth in Lending
information to compare credit costs.
The Board also publishes the Consumer Handbook
to Credit
Protection
Laws,
a complete guide to con-
sumer credit protections. This 44-page booklet explains how to use the credit laws to shop for credit,
apply for it, keep up credit ratings, and complain about
an unfair deal.
Protections offered by the Electronic Fund Transfer
Act are explained in Alice in Debitland. This booklet
offers tips for those using the new "paperless" systems for transferring money.
Copies of consumer publications are available free
of charge from Publications Services, Mail Stop 138,
Board of Governors of the Federal Reserve System,
Washington, D.C. 20551. Multiple copies for classroom use are also available free of charge.
LGCMQ
LE4SING
LE4SMG
LE4SMG
TRUTH IN LE4SING
The
Equal Credit
Opportunity
Act and
Credit Rights
In Housing
The Equal Credit
Opportunity Act
and . . .
What
Thithln
Lending
Means
ToYou
The
Equal
Credit
Opportunity
Act I
...andl
IF
YOU USE A
CREDIT
CARD
Publications of Interest
FEDERAL RESERVE
REGULATORY
SERVICE
To promote public understanding of its regulatory
functions, the Board publishes the Federal
Reserve
Regulatory Service, a three-volume looseleaf service
containing all Board regulations and related statutes,
interpretations, policy statements, rulings, and staff
opinions. For those with a more specialized interest in
the Board's regulations, parts of this service are
published separately as handbooks pertaining to monetary policy, securities credit, and consumer affairs.
These publications are designed to help those who
must frequently refer to the Board's regulatory materials. They are updated at least monthly, and each
contains conversion tables, citation indexes, and a
subject index.
Requirements
The Monetary Policy and Reserve
Handbook contains Regulations A, D, and Q plus
related materials. For convenient reference, it also
contains the rules of the Depository Institutions
Deregulation Committee.
The Securities Credit Transactions Handbook contains Regulations G, T, U, and X, dealing with extensions of credit for the purchase of securities, together
with all related statutes, Board interpretations, rulings, and staff opinions. Also included is the Board's
list of OTC margin stocks.
The Consumer and Community Affairs
Handbook
contains Regulations B, C, E, M, Z, AA, and BB and
associated materials.
For domestic subscribers, the annual rate is $175 for
the Federal Reserve Regulatory Service and $60 for
each handbook. For subscribers outside the United
States, the price including additional air mail costs is
$225 for the Service and $75 for each Handbook. All
subscription requests must be accompanied by a check
or money order payable to Board of Governors of the
Federal Reserve System. Orders should be addressed
to Publications Services, Mail Stop 138, Federal Reserve Board, 20th Street and Constitution Avenue,
N.W., Washington, D.C. 20551.