Full text of Federal Reserve Bulletin : August 1985
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VOLUME 71 •
NUMBER 8 •
AUGUST
1985
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
N a o m i P . Salus, Coordinator
i
The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Unit headed by Mendelle T. Berenson,
the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.
Table of Contents
a strong currency system should be its
protection against counterfeiting, before the
Subcommittee on Consumer Affairs and
Coinage of the House Committee on Banking, Finance and Urban Affairs, June 18,
1985.
601 ECONOMICS IN POLICY AND
PRACTICE:
OPPORTUNITY
OUT OF ADVERSITY
In an address, Paul A. Volcker, Chairman,
Board of Governors, says that the lessons
of economic history suggest that our success or failure in meeting problems is dependent on the degree we respect some
broad, guiding principles—a sense of price
stability, recognition that our destiny must
be found in the context of an open world
economy, and stability and continuity of
our financial markets.
607 FOREIGN
INTERIM
EXCHANGE
REPORT
OPERATIONS:
During the period from February to the end
of April, the exchange value of the dollar
fell on balance against most major currencies about 2 percent from levels at the end
of January.
609 STAFF
STUDIES
"Service Charges as a Source of Bank
Income and Their Impact on Consumers"
provides important insights into changes in
service charges and their effect on bank
income and consumers during the 1979-83
period.
611 INDUSTRIAL
PRODUCTION
Output declined an estimated 0.1 percent in
May.
613 STATEMENTS
TO
CONGRESS
Theodore E. Allison, Staff Director for Federal Reserve Bank Activities, Board of
Governors of the Federal Reserve System,
discusses the views of the Board on the
proposed "Currency Design Act," and says
that one of the primary concerns of those
who share the responsibility of maintaining
614 J. Charles Partee, Member, Board of Governors, discusses the current difficulties
that are being experienced by banks in our
agricultural communities, before the Subcommittee on Agriculture and Transportation of the Joint Economic Committee, June
19, 1985.
618 Emmett J. Rice, Member, Board of Governors, focuses on aggregate trends in the
small business sector, and says that public
policies oriented toward sustained growth,
with no sacrifice of price stability, will
create an environment in which small businesses can flourish, before the Subcommittee on Oversight and the Economy of the
House Committee on Small Business, June
25, 1985.
621 Chairman Volcker presents the views of the
Federal Reserve on regulation of the market
for Treasury and federally sponsored agency securities, before the Subcommittee on
Telecommunications, Consumer Protection
and Finance of the House Committee on
Energy and Commerce, June 26, 1985.
624 Chairman Volcker discusses issues involved in the budgetary treatment and procedures of the Federal Reserve System,
before the Subcommittee on Economic
Goals and Intergovernmental Policy of the
Joint Economic Committee, June 27, 1985.
629
ANNOUNCEMENTS
Request for nominations to the Consumer
Advisory Council.
Statement on activities of Bankers Trust
Company.
Financial results of priced service operations.
A 6 9 GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND
SPECIAL
TABLES
A 8 0 BOARD
OF GOVERNORS
AND
STAFF
Amendment to Regulation G.
A 8 2 FEDERAL OPEN MARKET
AND STAFF, ADVISORY
Amendments to Regulation T.
COMMITTEE
COUNCILS
Proposed action.
Admission of five state banks to membership in the Federal Reserve System.
631 LEGAL
A 8 4 FEDERAL RESERVE
PUBLICATIONS
A87 INDEX
DEVELOPMENTS
Various bank holding company, bank service corporation, and bank merger orders;
and pending cases.
TO STATISTICAL
A 8 9 FEDERAL RESERVE
AND OFFICES
A 9 0 MAP OF FEDERAL
AI FINANCIAL
AND BUSINESS
STATISTICS
A3 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A53 International Statistics
BOARD
TABLES
BANKS,
RESERVE
BRANCHES,
SYSTEM
Economics in Policy and Practice:
Opportunity out of Adversity
This article was adapted from an address given
by Paul A. Volcker, Chairman, Board of Governors of the Federal Reserve System, before
the Harvard University Alumni Association,
Cambridge, Massachusetts, June 6, 1985.
When I was trying to decide on an appropriate
subject for this address, I came across an article
in the Wall Street Journal about economics at
Harvard. It said that economics had become the
most popular area of concentration—first, because it appealed to corporate recruiters and
second because it was easy. The challenge before me today seemed clear.
Have things really changed that much from the
time I spent at Harvard? To check my memory, I
went to the library to see what had happened the
week I received my degree here in 1951. The lead
story in the New York Times was about the
Secretary of the Treasury warning Western European countries that their currencies were out
of line—they were way too high!
But I didn't have to read very far to sense a
more profound difference in attitudes. Sure,
there were enormous problems: the Korean War
was deeply troubling; Europe had only begun
rebuilding after World War II; and new countries
were just emerging in Africa and Asia, with
uncertain prospects. But through it all, there was
a sense that the United States was in control of
its own destiny and that this country was the
catalyst for action worldwide. When we sent out
signals, others listened.
Here at Harvard, the new Keynesian faith that
we had the tools for defeating the business cycle,
mainly by manipulating the federal budget, was
being actively propagated. If that might involve a
little inflation to ensure growth—well, so be it.
After all, we had never had a serious peacetime
inflation; the Great Depression was fresh in
everyone's mind; and the prime interest rate was
all of 2Vi percent. After the catastrophe of the
early 1930s, the financial system was newly
protected by federal insurance and other programs.
More broadly, there was a sense that government, far from being part of the problem, could
provide solutions. From this very platform, General Marshall had articulated a way by which
America could place its enormous resources
behind concerted European recovery. At Harvard, as at other leading universities, many of the
best and the brightest looked to the government
for a worthwhile and challenging career.
I suppose those attitudes culminated in the
mid-1960s. We could look back on a period of
unrivaled prosperity and growth, not just in the
United States, but elsewhere. Unemployment
was low throughout the industrialized world.
Inflation still seemed a relatively minor problem,
even if there were some flutterings of concern
when it rose all the way to 3 percent as the
Vietnam War heated up. We talked confidently
of prospects for the economic "take-off" of the
developing world and of a New Frontier and a
Great Society at home.
I well remember President Kennedy's celebrated commencement address at Yale, which
caught the intellectual spirit of the times. He
argued forcefully that old economic ideologies
and slogans were dead or dying. We needed
dispassionate, informed debate about evident
problems—unemployment, inflation, budget deficits, currency values, and the rest. The problems were complex, and the experts might differ.
But that technical debate about practical problems should not be encrusted with stereotypes or
mythology, such as inevitable links between budget deficits and inflation or the certain dangers of
any increases in government spending.
In effect, my Harvard classroom of 1950 had
become the forum for national policy. It all
seemed sensible enough.
But I also remember, as a Treasury official in
602
Federal Reserve Bulletin • August 1985
the 1960s, feeling vaguely uneasy. The "technical debate" to which President Kennedy referred
in fact spanned a substantial range of opinion,
rooted in quite different visions of the risks and
opportunities before us. More important, I wondered whether, in all the technical debate, we
hadn't lost sight of the critical importance of
some fixed principles to help guide the conduct
of economic policy.
Certainly, within a decade or so, there was a
sense that we had lost our way. No sooner had
we begun to take economic growth for granted
than unemployment began trending higher.
Moreover, by the end of the 1970s, productivity
practically stopped growing at all. We got used to
inflation, but it didn't seem to stimulate the
economy; instead it accelerated and persisted to
the point that we counted on it in our business
and private decisions. We freed ourselves from
the "discipline" of fixed exchange rates only to
find that large shifts in international currency
values could themselves bring uncertainties and
problems in economic management. Sharp
changes in domestic interest rates and financial
markets reflected the same pervasive uncertainty
and suggested that something in our policies had
gone wrong.
Obviously, there has been good news as well
of late. The pattern of accelerating inflation in
the industrial world has now been broken, and
fears of renewed acceleration have at least diminished. In this country, we have enjoyed a
strong expansion since 1982. Our growth has
helped encourage expansion abroad. Many developing countries, in circumstances far more
difficult than ours, are coping courageously with
embedded inflation and massive debt, and some
of them should now be able to look forward to
renewed growth.
More broadly, our political stability is still the
envy of the world. There is a renewed spirit of
hope and innovation. So let me assert that out of
difficulty we now have an opportunity—probably
the best opportunity in a generation—to help
lead the world into a new period of sustained
growth and stability. We again have something
upon which to build. But we have to seize that
opportunity. Time is short and the obstacles are
evident.
We all know about the massive deficit in our
federal budget—a deficit that would surely have
boggled the imagination of President Kennedy
when, more than 20 years ago, he defended the
idea that in some circumstances a deficit was
appropriate. The pressures of government finance on our capital markets are tolerable only
because we have been able to draw freely upon
massive amounts of capital from foreign countries—a significant drain on their savings. Even
so, our interest rates remain historically high,
and the capital inflow is necessarily matched by
an enormous flow of imports, squeezing our
manufacturers, miners, and farmers.
We continue to build more new offices than we
can occupy; we've become expert in trading all
kinds of companies and financial assets; we build
hotels, attend conventions, and travel at home
and abroad to an unprecedented extent—but all
the while productivity still lags. We spend our
days issuing debt and retiring equity—both in
record volume—and then we spend our evenings
raising each other's eyebrows with gossip about
signs of stress in the financial system.
We rail at government's inefficiency and its
intrusion in our markets—while we call upon the
same government to protect our interests, our
industry, and our financial institutions. And the
best of our young gravitate toward Wall Street
instead of Washington, our state houses, or our
courthouses. Or, perhaps more accurately, a
great many of our young do end up in Washington—to run a lobby or represent a client.
Those internal contradictions are evidence
enough of tension and trouble. And to a substantial degree they are mirrored in imbalances in the
rest of the world. Unemployment has reached 20
million in Europe, with no clear prospect of
significant reduction. New democracies in Latin
America have found themselves on the edge of
hyperinflation, compounding their difficulties in
raising living standards. In Africa and elsewhere,
a sustained process of growth has never really
started.
I am convinced that the problems are amenable to practical solutions. Indeed, on an intellectual level, the broad outline of a consensus seems
clear enough. Tighten up the budget fast. That
should reduce our dependence on capital inflows
and help create the conditions for lower interest
rates. For the first time in decades, we have a
program for a more rational tax system. Europe
and Japan can encourage more "home-grown"
Economics in Policy and Practice
growth. We can all support the efforts of the
developing world to make the needed adjustments. All of that should help produce a better
alignment of exchange rates.
At that level, economics does look easy.
The part that is hard is converting that vague
intellectual consensus into effective action. And
that's not a technical problem. It's a problem of
the governing process. It's the challenge of reconciling our individual interests and forming
them into a single, coherent common interest.
It's recognizing that we need strong and consistent signals from government—in effect, clear
and enforced rules of the road—if the marketplace is to work its magic of stability and growth.
The lessons of economic history suggest to me
that our success or failure in approaching the
practical problems will depend on the degree to
which we respect some broad guiding principles.
Their precise application in particular circumstances will always be debated. But they are
important precisely because they provide some
fixed points of reference for the technical debate.
PRICE
STABILITY
After all our experience, here and abroad, confidence in price stability surely must rank as one of
those principles. I don't mean we can or should
expect to achieve every year some arbitrary
statistical measure of zero: today sensitive commodity prices are falling, industrial producer
prices are virtually unchanged, and consumer
prices are still rising at 4 percent a year or more.
My point is simply that in conducting our affairs,
we should be able to assume that, over relevant
planning horizons, the general level of prices
won't change significantly in one direction or
another.
That may sound radical to a generation
brought up to expect inflation. And I know it was
fashionable here and elsewhere, a generation
ago, for economists to argue that a "little"
inflation wasn't necessarily a bad thing. Businessmen and homebuyers would be pleasantly
surprised to find their products or assets worth a
little more, and the economy would be stimulated—or so the argument went.
But that was a theory born in depression. It
doesn't turn out that way once inflation is antici
603
pated as a way of life. Then the process accelerates, the distortions become greater, and productivity declines. Nor does the solution of some
economists—indexation of taxes, wages, and interest rates—help fundamentally. In the end,
indexation cures nothing; indeed, it seems to
speed up the process.
We in the United States have had only one
prolonged period of accelerating peacetime inflation, in the 1970s. By the standards of some
countries, that inflation did not reach extreme
levels. But it didn't mean a stronger economy—
quite the reverse. The public properly was
aroused to the point of supporting a strong antiinflation program.
Now, the more extreme concerns about accelerating inflation are quiescent. But the scars
remain in a trail of uneconomic investments,
financial strains, and lingering doubts about the
prospects for prices.
Some are tempted to seek an answer to our
current economic problem by another drink from
the same inflationary bottle—just a little sip, of
course. But then who could trust that commitment to restraint, and what good would that sip
really do us?
The issue is critical, and not for the United
States alone. The dollar, like it or not, serves as
the principal trading currency for the world and
as an important store of value. No effective
substitute is available. How can we build a stable
international system on an unstable currency?
And how, with an unstable currency, could we
lead politically as well as economically?
Nor is the question purely economic. A government is created to provide—and is legitimated
by providing—certain collective functions: the
national defense, internal security, the assurance
of due process, and the protection of individual
freedom. Government provides the common unit
of account and means of payment, and with that,
it seems to me, goes the obligation for maintaining its stability.
The obligation of a government to issue the
currency and maintain its stability is obviously
crucial for a central bank. I don't mean that we
can or must direct every decision on monetary
policy solely toward achieving price stability as
rapidly as feasible, oblivious to all other economic circumstances of the day, or that we can rely
on theorizing about a fixed relation between the
604
Federal Reserve Bulletin • August 1985
money supply and prices to govern every policy
decision. I do mean that each of those decisions
will involve a need to weigh its potential effects
on inflation, with the clear objective of returning
to, and maintaining, stability over time.
There was, for instance, in my mind no inconsistency between a continuing priority concern
about inflation and our recent decision to, in the
jargon, "ease money" by lowering the discount
rate. That decision took place under particular
circumstances: a strong dollar, ample capacity,
and slow growth—all of which tend to reduce
inflationary pressures. The sensitivity of some to
any action that can be interpreted as inflationary
is an understandable, if mistaken, heritage of the
absence of effective, consistent government policies to deal with inflation over years. One reward
of a record of greater stability, and of a credible
commitment to maintain that stability, will in fact
be greater operational flexibility for the monetary authorities.
Sophisticated economists spent a long time
teaching us that a balanced budget is not always
appropriate and that deficits aren't always inflationary—that it all depends on circumstances.
We learned well—too well.
I need not repeat all the analysis that points
toward the urgency of reducing the budget deficit
today. Suffice it to say that the deficit is a major
factor accounting for the lopsided nature of the
present expansion: pouring out purchasing power on the one hand, while straining world capital
markets and the financial system on the other.
And, at the same time, the deficit helps keep
inflationary expectations alive, and the accumulating interest compounds burdens into the future. Those are not circumstances with which
monetary policy can deal by itself. It's time for
action.
OPEN
WORLD
ECONOMY
A second area in which a sense of lasting commitment seems to me essential involves clear
recognition that our destiny must be found in the
context of an open world economy. It's still an
oddity of American textbooks on elementary
economics that international economics is relegated to the back of the book, with the implica-
tion that the topic can be dropped if the semester
isn't long enough. But there really are no separate compartments of "domestic" and "international" economics: as Gertrude Stein might have
said, economics is economics is economics.
The arguments for a liberal trading order have
always been persuasive, even when sailing ships
took months to cross the oceans and foreign
travel was rare. Today, with instantaneous communications, with jet planes filling the skies, with
business and financial institutions operating
across international boundaries as a matter of
course, we would forget the international implications of our policies at our peril.
The issue is, again, more than economic. If we
have a vision of a flourishing western economic
world, providing the opportunity and growth that
are the counterparts of our political ideals, then
we had better recognize our mutual dependence
from the start and seek our prosperity in the ,
context of that of others. Once before at a time of
difficulty, when we were still emerging as a world
power, we tried in effect to opt out by raising
high tariff walls. The results in the 1930s should
be warning enough.
Yet, the pressures for protectionism are again
strong and growing. That's understandable
against the background of the massive trade
imbalance. We rightly complain about the trade
restrictions of others. But, in one area after
another, we ourselves have compromised the
liberal trading ideal.
There are more constructive ways to approach
the problem. Most of all, we have to face the fact
that our trade deficit and exchange rate problems
in substantial measure grow out of contradictions
in our own economic policies. Some of our
trading partners—certainly Japan—need to face
up to problems that, in important ways, are the
mirror image of our own—undue reliance on
trade surpluses.
Instead of shrinking into a trading shell, with
all the risks of retaliation and divisiveness, we
can again take the offensive by leading the world
into a new round of multilateral trade negotiations, seeking a global bargain to deal with
existing restrictions. That, of course, is precisely
the approach the administration is wisely trying
to take.
As a nation, we have been ever more niggardly
Economics in Policy and Practice
in our support for the international financial
institutions—the World Bank, the Inter-American Development Bank, and others—that farsighted American leadership brought into being.
Those institutions are challenged as never before, and they need our active support and
commitment.
We can hardly blind ourselves to the fact that
exchange rates, through the floating period, have
become more volatile rather than less, increasingly distorting trade and financial transactions.
No doubt the erratic—to put it mildly—movements in exchange rates reflect in substantial
part those policy imbalances and uncertainties to
which I have already referred. If the volatility
persists in a context of better international equilibrium, we will have to reexamine with a fresh
mind whether ways can be found, in a cooperative international setting, to encourage greater
stability.
STABILITY AND
OF FINANCIAL
CONTINUITY
MARKETS
The third area I will touch upon briefly is less
concrete than price stability and international
interdependence, but it may be more important.
We have an enormous talent for adapting new
information and communications technology to
business practices and financial markets. These
days we have a market for taking a financial
position one way or another almost instantaneously on practically anything, all justified by
sophisticated arguments about facilitating preferred investment strategies or hedging risks. But
it all raises the question of whether in the process
we have lost sight of some of the qualities basic
to the stability and continuity of any market.
Financial crisis was a recurrent feature of the
American economic landscape in the nineteenth
and early twentieth centuries. That is why we
have developed an armory of instruments—the
Federal Reserve, the Federal Deposit Insurance
Corporation, and the Federal Savings and Loan
Insurance Corporation—to help assure that inevitable isolated failures or strains do not infect the
entire system.
In the aftermath of the last great crisis, in the
1930s, that kind of federal support was hardly
needed. The natural bent was to be conservative,
605
and banks and businesses were both highly liquid
and amply capitalized.
But today we have a new generation. During
our formative years the strength of the financial
system, and of the institutions within it, began to
be taken for granted. We came to count on
inflation. More leverage, less liquidity, and riskier assets could be rationalized—particularly if it
could be assumed that the "Government" would
protect the depositor. In that environment, some
of the old canons of prudent lending and fiduciary behavior seemed less relevant. And for those
who had never experienced a crisis of confidence, it was hard to remember that, whatever
the urgent competitive pressure to grow and to
produce this year's profit, confidence is the most
precious asset of any financial institution.
Now, in a time of stress, we have been reminded once again of the relevance of some of those
old standards. The federal safeguards, to be sure,
hold strong. But by themselves they do not
ensure confidence in every institution, or protect
the stockholder of a bank or a savings and loan
association, or guarantee against dishonesty.
And there is renewed recognition that federal
protections have a price—that a government that
visibly bears much of the ultimate risk will insist
on its responsibility to exercise strong supervision and regulation.
There has to be a better way than counting on
bureaucrats to do so much of the job.
I wonder whether, over there in the Business
School and in its sister institutions at other
universities, they take enough time to teach the
lessons of financial crises, including how many
business reputations have been irretrievably tarnished when competitive pressures or simple
greed have led owners or managers to undercut
acceptable standards. If schools are not teaching
these lessons, recent experience seems to be
offering rich material for a new case book—one
that illustrates how, in the last analysis, the
effective operation of a market system rests on
the mutual trust that can be nurtured only by a
strong sense of business integrity and fiduciary
responsibility. I wonder, too, whether our accountants and lawyers, in serving their clients'
interests, are always as sensitive as they should
be to their professional responsibilities, designed
to protect the public at large.
606
Federal Reserve Bulletin • August 1985
IN CONCLUSION
...
Maybe all of this sounds like a central banker
reverting to type—preaching to others about
their responsibilities. But I won't apologize.
Since the days of President Wilson—I am
referring to his days as president of Princeton, of
course—my own alma mater has had as its
motto: "In the nation's service." I know that
may sound trite these days, but it still says
something to me about what education should be
all about.
I also sense that one aspect is less strong
today: a willingness to make a lasting commitment to a career in government itself. That
strikes me as unfortunate—unfortunate from the
standpoint of effective government, which must
rely on a core of dedicated civil servants and
experienced legislators capable of understanding
the great issues of our time. I think that it's
unfortunate, too, from the standpoint of those
missing what can be a satisfying and exciting
career.
I sense some of the reasons why government
service has become less attractive, and we ought
to deal with them. In the end, it's a matter of
respect—for the role of government and for
those who work in it. In the end, in our country,
the responsibility of government is to foster a
climate of opportunity—an environment in
which enterprise, and ingenuity, and personal
initiative will flourish. We can't afford to lose
those traditional American values of "know
how" and "can do." My point is that those
qualities, in the end, are supposed to work
toward bettering the lot, not just of ourselves and
our families, but of our communities—local, national, and global. They will do that only if our
acquisitive instincts are confined within certain
accepted principles of law and policy. In economic terms, amid the diversity of our individual
efforts we should be able to count on an overall
framework of stability and continuity. That
framework has to extend to our relations with
other free nations. It demands personal responsibility and integrity rooted in a larger national
purpose.
I've talked about economics, but it's not the
technical economics of the classroom. My concern is with economics in practice, as a part of
the larger human experience, with all its vagaries; and with economics as a responsibility of
government, with all its implications for decisionmaking through a political process.
In that sense, I suspect there is as much—
perhaps more—to learn in reading history or the
classics, or in learning about other cultures, as in
the study of economics itself.
We will succeed not because our business
leaders or all the members of Congress took
Economics 10: they can call on a lot of Ph.D.s for
the technical advice. Rather, they will need a
larger vision, which encompasses a sense of
human frailty as well as human potential. We will
need to realize we can't be in business just for
ourselves. We need to recognize that our individual and national interests are inextricably tied up
with others.
Out of economic adversity, we have new opportunities. Let's make the most of them.
•
607
Treasury and Federal Reserve Foreign
Exchange Operations: Interim Report
This interim report, covering the period February through April 1985, is the twenty-fifth of a
series providing information on Treasury and
System foreign exchange operations to supplement the regular series of semiannual reports
that are usually issued each March and September. It was prepared by Sam Y. Cross, Manager
of Foreign Operations of the System Open Market Account and Executive Vice President in
charge of the Foreign Group of the Federal
Reserve Bank of New York, and Richard F.
Alford, Senior Economist.
The dollar rose strongly during February to
record highs for the floating-rate period against
major European currencies, then fell unevenly
until mid-April. At the end of April the dollar was
trading somewhat above its lows for the threemonth period, but on balance was down from
levels at the end of January about 2 percent
against most major currencies. Exchange markets were highly unsettled on a number of occasions during the period. Monetary authorities
intervened heavily during February and early
March following the G-5 meeting in January at
which the participating countries reaffirmed their
commitment to promote convergence of economic policies, to remove structural rigidities,
and to undertake coordinated intervention as
necessary.
The dollar began to move up strongly as the
period under review opened. The dollar's resilience in the face of declining U.S. interest rates
during the last quarter of 1984 had increased
confidence in the currency. But the main factor
spurring the reacceleration of the dollar's rise
was the market perception that the U.S. economy was likely to pick up again and maintain
strong growth with low inflation after the slowing
late in 1984. The expected economic growth and
the recent acceleration of the monetary aggre-
gates were thought likely to limit the scope for
any further easing of monetary policy.
Moreover, economic recovery in Europe continued to be comparatively sluggish despite the
strong contribution to world economic growth
provided by the U.S. expansion. Against this
background, market sentiment toward the dollar
became extremely bullish. There was strong demand for dollars for both commercial and investment purposes as well as by market professionals, even as the dollar set record highs against
several European currencies. Markets became
one-sided and unsettled as the dollar's rise
gained momentum, particularly after it passed
levels at which some central banks had intervened in the past. Through February 26, the
dollar rose nearly 10 percent against major European currencies—to about DM3.48 and $1.03
against the German mark and British pound
respectively—while rising 3 percent against the
yen.
1. Federal Reserve reciprocal currency arrangements
Millions of dollars
Institution
Amount of facility,
April 30, 1985
Amount of facility,
April 30, 1984
Austrian National Bank . .
National Bank of Belgium .
Bank of Canada
National Bank of Denmark
Bank of England
Bank of France
German Federal Bank
Bank of Italy
Bank of Japan
250
1,000
2,000
250
3,000
2,000
6,000
3,000
5,000
250
1,000
2,000
250
3,000
2,000
6,000
3,000
5,000
Bank of Mexico
Netherlands Bank
Bank of Norway
Bank of Sweden
Swiss National Bank
Bank for InternationalSettlements:
Swiss francs/dollars
Other authorized
European currencies/
dollars
700
500
250
300
4,000
700
500
250
300
4,000
600
600
Total
1,250
1,250
30,100
30,100
608
Federal Reserve Bulletin • August 1985
On three occasions during the first three weeks
of February the U.S. authorities intervened,
selling a total of $208.6 million against marks,
$97.6 million against yen, and $16.8 million
against sterling to counter disorderly market
conditions in operations coordinated with foreign
monetary authorities. But the exchange markets
became more unsettled amid uncertainty over
the high dollar exchange rates and the speed of
the dollar's rise over the preceding weeks. The
dollar started to ease back from its highs. Then,
coordinated intervention operations, considerably larger than those of the preceding months,
were undertaken by several monetary authorities. As for their part in these operations, the
U.S. authorities intervened on two occasions at
the end of February and once in early March,
selling a total of $257.2 million against marks. At
the end of these operations the dollar was well
below its highs of February 26.
The dollar moved higher during the following
week before declining again as newly released
U.S. economic statistics indicated that growth in
the first quarter might be lower than previously
expected. The pace of the dollar's decline accelerated during March and early April as exchange
markets became concerned about the implications for monetary policy and, more generally,
about the troubles of the Ohio thrift industry and
the slowing of U.S. economic growth. As the
market adjusted to these uncertainties, the dollar's decline at times was rapid, moving through
levels at which resistance had been expected by
some market participants.
By the middle of April, the dollar had fallen 15
percent from its highs of February to a low of
DM2.95 against the mark. Its drop in terms of the
Japanese yen and the Canadian dollar was much
smaller—about 6V2 percent and 4 percent respectively—just as the dollar's earlier rise relative to
those two currencies had been more moderate.
The dollar fell most dramatically, by more than
20 percent, against sterling. Following a sharp
rise in British interest rates during late January,
market participants had come to anticipate that
the British authorities would maintain their antiinflationary stance, with the result that sterling
interest rates would remain substantially above
those elsewhere. In these circumstances, sterling
benefited more than other currencies from in-
2. Net profits or losses ( - ) on U.S. Treasury and
Federal Reserve current foreign exchange
operations 1
Millions of dollars
Period
February 1 through
April 30, 1985
Valuation profits and losses on
outstanding assets and
liabilities as of April 30,
19852
Federal
Reserve
U.S. Treasury
Exchange
Stabilization
Fund
0
0
-1,294.5
-841.2
1. Data are on a value-date basis.
2. Cumulative bookkeeping, or valuation, profits or losses represent the increase or decrease in the dollar value of outstanding
currency assets and liabilities, using end-of-period exchange rates as
compared with rates of acquisition. These valuation losses reflect the
dollar's appreciation since the foreign currencies were acquired.
vestment flows out of dollar-denominated assets
as the dollar declined.
The dollar found support at the lower levels
reached in mid-April as professionals covered
short positions and strong investment and commercial demand emerged. The dollar closed
April down slightly on balance from the opening
of the period. In March and April, however,
daily exchange rate movements were sharp and
bid-offer spreads were wider than normal as
market perceptions about trends in the economy
and likely official responses were in a constant
state of flux. Under these circumstances, the
dollar-mark exchange rate, for example, fluctuated 2 percent each day on average during the
two months.
In the period February through April, the
Federal Reserve and the Exchange Stabilization
Fund (ESF) realized no profits or losses from
exchange transactions. The Federal Reserve and
the ESF invest foreign currency balances acquired in the market as a result of their foreign
exchange operations in a variety of instruments
that yield market-related rates of return and that
have a high degree of quality and liquidity.
Under the authority provided by the Monetary
Control Act of 1980, the Federal Reserve had
invested $927.0 million of its foreign currency
holdings in securities issued by foreign governments as of April 30. In addition, the Treasury
held the equivalent of $1,621.7 million in such
securities as of the end of April.
•
609
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 F E D E R A L R E S E R V E
BULLETIN.
The analyses and conclusions set forth are
those of the authors and do not necessarily
STUDY
SUMMARY
SERVICE
CHARGES
AS A SOURCE
OF BANK
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 B U L L E T I N
are available without charge. The list of Federal
Reserve Board publications at the back of each
B U L L E T I N includes a separate section entitled
"Staff Studies" that lists the studies that are
currently available.
INCOME
Glenn B. Canner and Robert D. Kurtz—Staff,
AND THEIR IMPACT
Board of
ON
CONSUMERS
Governors
Prepared as a staff study in the fall of 1984
This study investigates recent changes in service
charges at depository institutions to assess their
effect on bank income and consumers. The study
was requested by the Consumer Advisory Council of the Federal Reserve Board at the Council's
July 1984 meeting. Because of limitations associated with the CAC request, no new surveys were
undertaken for the study. As a consequence,
certain issues regarding the effects of changes in
fees on consumers could not be adequately addressed. Nevertheless the study provides important insights into developments of the 1979-83
period, which included the authorization of interest-bearing checking accounts, the start of deregulation of interest rates on depository accounts,
and the beginning of fees on certain Federal
Reserve services that previously had been provided to commercial banks without charge.
Information on changes in service charges and
their influence on bank income is derived from
two sources: (1) intertemporal surveys of price
schedules at commercial banks and (2) the Functional Cost Analysis, developed by the Federal
Reserve Banks to allow costs at commercial
banks to be compared. Highlights from the surveys of price schedules are as follows:
• Although there is a broad range of charges for
each service within and among categories of
bank size, the charges for many services tend to
be clustered around the average.
• Increases from 1980 to 1983 in minimum
balances needed to avoid service charges on
checking or savings accounts are similar to the
increase in the Consumer Price Index for that
period. Increases in service charges imposed
when balances fall below the specified minimum
were two to four times larger than the increase in
the CPI.
• Although the number of banks imposing service charges continues to increase, some banks
still do not impose fees for many services. A
majority of banks waive some fees and minimum
balance requirements for senior citizens and minors.
• The data show no consistent relationship
between the level of service charges and the size
of the bank imposing the charges.
610 Federal Reserve Bulletin • August 1985
The Functional Cost Analysis revealed the
following main points about bank income and
expense:
• Between 1979 and 1983, both bank income
from service charges and bank expenses per
personal checking account increased significantly. Higher interest expense accounted for most
of the growth in bank expenses.
• The return to banks on personal checking
accounts in 1983 was either essentially unchanged or somewhat lower than in 1979, depending upon bank size.
Information on service charges from the perspective of the consumer comes mainly from
surveys, which contained the following highlights:
• In both 1977 and 1983, about 80 percent of
families had checking accounts.
• Evidence suggests that the proportion of
lower-income families and younger families without checking accounts was larger in 1983 than it
was in 1977. The cause of this apparent increase
is uncertain. Of consumers with a checking account, 57 percent, including the vast majority of
families headed by an elderly person (regardless
of income), report they normally do not pay
service charges on their main checking account.
• Regardless of income, only a small fraction of
consumers rank service charges ahead of convenience, availability of many services, and safety
when asked to list such reasons in order of
importance to them in their selection of a primary financial institution.
611
Industrial Production
Released for publication June 14X
tinued to rise, while consumer goods remained
unchanged and production was cut back in business equipment and in materials. At 165.3 percent of the 1967 average, output is 1.5 percent
Industrial production edged down an estimated
0.1 percent in May, following a decline of 0.2
percent in April. In May, output of construction
supplies and defense and space equipment con-
revision that was released on July 18. See "A Revision of the
Index of Industrial Production" and accompanying tables
that contain revised indexes (1977=100) through December
1984 in the FEDERAL RESERVE BULLETIN, vol. 71 (July 1985),
pp. 487-501. The revised indexes for January through June
1985 will be shown in the September BULLETIN.
1. This statistical report, which was released on June 14,
was the last press release on the index before the major
1967 = 100
1967 = 100
-
Products output
/-"
\7
""""v.
i
All series are seasonally adjusted and are plotted on a ratio scale.
i
,
i
Materials output
I
I
Auto sales and stocks include imports. Latest figures: May.
—
612
Federal Reserve Bulletin • August 1985
1967 = 100
Percentage change from preceding month
1985
1985
Grouping
Apr.
May
Jan.
Feb.
Mar.
Apr.
May
Percentage
change,
May 1984
to May
1985
Major market groupings
Total industrial production
165.5
165.3
.2
.2
.3
-.2
-.1
1.5
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment..
Defense and s p a c e . . .
Intermediate products..
Construction supplies
Materials
168.5
167.1
162.4
161.9
162.6
187.8
149.5
173.9
158.7
160.9
168.5
166.9
162.4
161.6
162.7
187.1
149.9
174.5
159.1
160.4
-.1
.0
-.1
-.3
.1
-.2
.8
-.3
-.4
.4
-.1
-.2
.0
1.2
-.5
-.4
-.3
.2
-.1
.7
.4
.4
.3
1.3
-.1
-.2
1.7
.5
.6
.1
.0
.1
-.1
-1.6
.4
-.1
1.2
-.1
.6
-.6
.0
-.1
.0
-.2
.1
-.4
.3
.3
.3
-.3
3.2
3.6
.4
.1
.6
6.0
12.6
1.7
-.3
-1.0
Major industry groupings
Manufacturing.
Durable
Nondurable .
Mining
Utilities
167.0
158.2
179.8
123.7
188.1
166.9
158.0
179.7
122.9
189.6
1.6
3.1
.0
.0
.4
-.2
-.1
.0
.0
1.0
.3
-.3
.6
.2
-.4
- . 1
.2
-.1
-.1
-.1
2.5
1.4
-.5
-2.8
.4
-.6
-.1
-1.7
4.0
NOTE. Indexes are seasonally adjusted.
higher than in May 1984 but remains fractionally
below last summer.
In market groupings, production of consumer
goods was unchanged in May, reflecting a small
decline in the output of goods for the home and
little change in auto production and nondurable
goods. Automobiles were assembled at an annual
rate of 8.0 million units, down slightly from the
rate in April. Output of business equipment was
reduced 0.4 percent in May—the fifth consecutive decline—with continued weakness evident
in commercial equipment, which includes computers and office equipment. Increases continued, however, in production of defense and
space equipment, and output of construction
supplies rose for the third month.
Materials output declined 0.3 percent in May
following a reduction of 0.6 percent in April.
Nondurable materials were down in May, and
durable materials also declined, reflecting cutbacks in metals and equipment parts.
In industry groupings, manufacturing output
was off 0.1 percent with similar declines in both
durable and nondurable manufacturing. Mining
production was reduced 0.6 percent further,
mainly reflecting continued weakness in oil and
gas well drilling. Utility output gained an estimated 0.8 percent in May.
613
Statements to Congress
Statement by Theodore E. Allison, Staff Director
for Federal Reserve Bank Activities, Board of
Governors of the Federal Reserve System, before the Subcommittee on Consumer Affairs and
Coinage of the Committee on Banking, Finance
and Urban Affairs, U.S. House of Representatives, June 18, 1985.
I appreciate the opportunity to participate on
behalf of the Federal Reserve Board in these
hearings on the proposed "Currency Design
Act." We believe that, in considering design
changes, one of the primary concerns of all of us
who share the responsibility of maintaining a
strong currency system should be its protection
against counterfeiting. We appreciate and welcome your subcommittee's interest in this issue.
However, the selection of optimum design features for counterfeit deterrence must, by the
nature of the problem, be dominated by timing
and technical considerations that are more appropriately delegated to a government agency
rather than imposed on the Congress.
The position of the Board on counterfeit deterrence remains essentially unchanged since the
subcommittee's hearings last July. This position
is the following:
1. Major and rapid technological improvements in reprographics—in equipment for color
printing, in color copiers, and in printers for
color computer output—pose a serious threat to
potential counterfeiting and, in turn, a threat to
confidence in the currency system.
2. The solutions are neither simple nor costless
and must include a combination of currency
design improvements that will make the paper
more distinctive and the printing more secure
while providing a feature (or features) incapable
of easy replication by ordinary reprographic
equipment.
3. The implementation period will be long—
about four years from the time of decision on the
final design to the time of replacement of the
outstanding currency stock.
Let me emphasize that the integrity of our
currency is not in serious jeopardy at this time,
but that we see ominous signs for the period not
too far ahead. Our most serious concern is that,
without action soon to improve the deterrent
effectiveness of the currency, counterfeiting will
become so easy and so widespread as to affect
the very viability of the currency system. We are
keenly aware that this viability is largely a function of confidence. If this confidence is shaken,
the role of currency as a medium of exchange
could be undermined with serious financial and
economic dislocations. The record of the use of
currency in the United States in the century
before the passage of the National Banking Act is
ample testimony to the seriousness of this problem.
We are aware that the confidence with which
we are concerned is fragile, perhaps more fragile
and its loss more contagious now with our almost
instantaneous access to the news. We are persuaded, therefore, that we must be willing to take
timely and significant measures to avoid even
coming close to a risk of such gravity.
All sources that we have consulted advise us
that it will become increasingly easy to copy our
currency unless the design is changed. There will
be more copying equipment on the market and,
importantly, it will be more sophisticated yet
require less skill by the operator. Marketing
projections from the reprographics industry unequivocally point to an escalating increase in the
availability of devices that can produce high
quality counterfeits.
Since your last hearing we have received two
updates of the research in 1982-83 of Battelle
Columbus Labs into the counterfeiting threat.
The most recent update is dated May 1, 1985.
Rather than being based solely on marketing
projections, this research also examines the technology of imaging and focuses on the question of
how long it would take the technology to mature
to counterfeiting quality. Both Battelle Columbus Labs and the marketing projections arrive at
614
Federal Reserve Bulletin • August 1985
the same conclusion. Although they agree more
on "how many" than on "when," the message
from both is clear: the situation will be serious by
the end of this decade.
The role that the Federal Reserve has played
in counterfeit deterrence can be traced to its part
in forming a committee with three other central
banks about six years ago to develop ways to
head off a threat that was already foreseeable at
that time. The Bureau of Engraving and Printing
also serves on this committee. Most of the deterrent programs with which we have been involved
derive from the work of this committee.
I might note that we are close to implementing
even more sophisticated and secure systems for
use by our Federal Reserve Banks to assist us in
screening out counterfeit notes from the curren-
cy that we process for commercial banks. We
plan to maintain 100 percent effectiveness in this
area through a combination of mechanical and
visual methods. However, this process does not
protect the individual user of currency from the
fraud of counterfeiting nor the nation from the
cost of economic disruption and reduced confidence resulting from large-scale or widespread
counterfeiting activity. This protection can be
done only through improvements in the design of
the note itself.
Such a change will require the commitment of
all of us, not only to solving the technical problems involved, but to making sure that the public
understands the reason for the change and is
shown how to make use of the protection such a
change offers.
•
Statement by J. Charles Partee, Member, Board
of Governors of the Federal Reserve System,
before the Subcommittee on Agriculture and
Transportation of the Joint Economic Committee, June 19, 1985.
machinery and equipment. Moreover, in view of
the apparently favorable outlook for agriculture
and, for most of the decade, of interest rates that
were low relative to the expected rise in income
and asset prices, many thought it advantageous
to finance a relatively large share of these investments with borrowed money. Consequently,
farm indebtedness surged—rising, after allowance for inflation, about 60 percent from 1971 to
1979.
As it turned out, however, the agricultural
boom of the 1970s gave way to a bust in the
1980s. Both here and abroad, the high farm
prices of the 1970s attracted additional resources
into agriculture. Moreover, further breakthroughs in genetics and in farm technology
enhanced the productivity of such resources.
Thus, farm production has been increasing at a
considerable pace over this decade. At the same
time, the growth in demand for American agricultural products has weakened. Farm exports,
in particular, have been reduced by sluggish
economic conditions abroad and by the high
exchange value of the U.S. dollar as well as by
the expanded ability of other nations to meet
consumption needs from their own internal production. These market developments have kept
farm prices persistently depressed. As a result,
farm income has been low for five years in a row,
and land values have been declining since 1981.
Farm debt, though no longer increasing, is still
I appreciate the opportunity to appear before this
committee to discuss the current difficulties that
are being experienced by banks in our agricultural communities. As members of this committee
are well aware, these problems have been intensifying lately, as more farmers have been finding
it difficult, if not impossible, to meet fully the
contractual terms of their loan obligations.
The origin of these problems can be traced to
the 1970s. Our farm sector experienced a major
economic boom during that decade, and many
farmers expected the good times to continue in
the 1980s. There was, in particular, a general
perception that there were limits on the potential
world production of agricultural products and
that these limits would continue to encourage a
rapid growth in farm exports, thus fostering
increasing returns to land and to other farm
inputs. Many also believed that the more rapid
inflation of the decade would persist so that longterm indebtedness could be paid off with less
valuable future dollars. Acting on these expectations, farmers and other investors acquired additional farmland, bidding up its price in the process. Farmers also invested heavily in new
Statements
high; and interest rates on farm loans, while
down from earlier levels, remain well above
those prevailing in the last decade when much of
the debt was incurred. Thus, many farmers are
faced with the problem of servicing a large
volume of debt, at relatively high interest rates,
with a substantially reduced level of farm earnings. High interest rates and reduced income
flows also have added to the downward pressure
on land values, thus further limiting the farmers'
ability to pay down debt by selling these assets.
The earnings of all farmers have been adversely affected by lower product prices, but not all
farmers are experiencing the same degree of
financial stress. Farmers that are relatively debt
free have suffered declines in asset values but are
not in danger of falling into insolvency. In contrast, producers who entered the 1980s with only
a relatively small equity cushion have been experiencing increasing financial difficulties. Estimates indicate that perhaps a third of the fulltime producers on commercial-sized family
farms have debt burdens that are large enough to
cause moderate to severe financial stress, and
this group owes about two-thirds of all farm debt.
The greater proportion of this debt is owed to the
Farm Credit System, the Farmers Home Administration, and individuals. Nonetheless, about
one-quarter of total farm credit is provided by
commercial banks, and a sizable proportion of
the farm loan portfolios of many banks have
become troubled to a greater or to a lesser
degree.
Commercial banks experienced only minimal
problems in their farm loan portfolios during the
1970s. Such problems began to pick up in 1981
and have been increasing steadily since then.
One indication of the deterioration in the quality
of agricultural loans at banks that has occured
since then is provided by data on delinquencies
and charge-offs. While not all banks are required
to report such data for their farm loans, from
available information our staff estimates that at
the end of March this year, nonaccrual farm
production loans at all banks in the nation totaled
about $1.7 billion, and other nonperforming
loans—those past due 90 days or more but still
accruing interest, plus renegotiated troubled
loans—totaled about $0.9 billion. In addition,
about $1.3 billion of farm production loans were
past due 30 to 89 days. Altogether these poor
to Congress
615
performing and nonperforming loans constituted
about 10 percent of all farm production loans.
In addition, net charge-offs of farm loans at all
commercial banks are estimated to have been
about $900 million in 1984, or a bit more than 2
percent of outstanding farm loans. Of this total,
$240 million was reported by banks in California,
representing about 6 percent of their outstanding
farm loans. While California banks led the nation
in charge-offs, these losses presented less of a
problem for these banks than for banks in many
other states. This situation occurred because
most of the losses were booked by major banks
with large branching systems in which agricultural loans constituted a relatively small proportion
of their total asset portfolios. In contrast, many
banks operating in agricultural areas of states
that limit branching—states found mainly in the
midwest—have had more trouble accommodating to their loan losses because of the high
concentration of these loans in their asset portfolios.
Last year's high charge-offs and an increase in
the provision of loan-loss reserves had a marked
depressing effect on the profitability of many
agricultural banks (banks at which the ratio of
farm loans to total loans exceeds the average of
such ratios at all banks, currently about 17
percent). On average, returns on equity fell to 9
percent, down from returns that averaged between 14 and 16 percent in every year from 1973
through 1982. There was great variation in the
earnings that were recorded among agricultural
banks, however, mainly reflecting a sharp difference in loan-loss experience. Thus, 12 percent of
these banks reported negative earnings last year,
and another 9 percent recorded only minimal
positive earnings. At the same time, more than
half of these banks earned more than 10 percent
on equity, and nearly a fifth, more than 15
percent.
In the aggregate, earnings of agricultural banks
were high enough to permit a further buildup in
the average capital ratio of these banks, and the
capital ratios of most agricultural banks remain
high relative to those at nonfarm banks. But
more farm banks seem certain to come under
financial strain if farm loan losses continue to
intensify. Moreover, as I have noted, a small but
troubling number of farm banks experiencing
relatively high loan losses have already suffered
616
Federal Reserve Bulletin • August 1985
an erosion of their capital base, thus increasing
their vulnerability to failure should such losses
continue.
Such extremely adverse results have been
occurring in small but increasing numbers. Last
year, 32 agricultural banks failed—mostly in the
second half of the year—compared with only 7
banks in 1983. Many of these banks came from a
group that had reported delinquent loans at the
beginning of the year in excess of the capital of
the bank. Unfortunately, the number of agricultural banks in this condition, while still a relatively small proportion of the 5,000 agricultural
banks, rose further during 1984. At 102 agricultural banks, nonperforming loans at the beginning of this year exceeded total capital, up from
44 banks a year earlier. Moreover, at 240 agricultural banks, the combined sum of past due and
nonperforming loans exceeded total capital, up
from 133 banks a year earlier. Agricultural bank
failures are likely to rise commensurately; indeed
30 farm bank failures already have occurred,
accounting for two-thirds of the banks that have
failed so far this year.
To sum up the current situation, while the
incomes of the great bulk of our farmers have
been reduced since the beginning of this decade,
those farmers that got heavily into debt in the
1970s are primarily the ones who are experiencing serious financial strains, with the severity of
these strains increasing with the degree of their
leveraging. While such farmers constitute only
about one-third of all farmers, they account for
about two-thirds of all agricultural debt. As many
of these borrowers have found it increasingly
difficult to service their loans, banks and other
agricultural lenders have been encountering increasing problems. To date, information suggests
that the great majority of farm banks remain in
good condition despite these problems, but a
significant and growing number is experiencing
an increasing degree of strain.
That so many of our farm banks remain in
relatively strong condition after five years of
depressed conditions in the agricultural sector
stands, I believe, as a tribute to their management. What this rather clearly suggests is that
these banks generally followed prudent standards in extending credit to their farm customers
during the boom times of the 1970s, standards
that tended to hold down the degree of leveraging
that was permitted individual customers—and in
the process helped to dampen tendencies for
these customers to become overextended. In
addition, many farm banks followed policies that
permitted them to maintain reasonably diversified asset portfolios.
Banks that failed to adhere to high standards of
quality and asset diversity have been considerably more vulnerable to the effects of deteriorating circumstances of agricultural borrowers. One
can point to situations in which a bank that is
failing or that is in extremely troubled condition
is located in close proximity to one or more other
banks that remain in good condition. In addition,
I understand that the Federal Deposit Insurance
Corporation (FDIC), in a study that it conducted
of the banks that failed in 1984, found evidence
of various kinds of abusive practices, including
improper insider transactions, instances of possible fraud, and other forms of irregular management activities.
The management policies and practices of
banks, of course, tend to vary along a continuum. Thus, the longer conditions in the agricultural sector remain depressed, the greater will be
the number of banks experiencing problems of
greater severity. As I have noted, that process is
already quite observable in the trends of recent
years. Since no dramatic change appears likely in
the current balance between supply and demand
in agricultural markets, such trends seem almost
certain to continue for some time to come. Put
more directly and graphically, it seems quite
possible that many more agricultural banks and
their farmer customers will experience severe
financial dislocations over the next several
years. I should hasten to add that at present it
still appears that the great majority of farmers
and of farm banks have sufficient financial
strength to weather these conditions, although
not without growing strains and problems.
The debt adjustment program, first announced
by the administration last September and then
modified in March, will offer agricultural banks
and their farmer customers some assistance in
moving through the difficult transition period
that appears to lie ahead. As committee members
know, under this program the government will
guarantee most of the remainder of a troubled
farm loan after the lender reduces the principal
amount, or an equivalent in interest charges, 10
Statements
percent or more as needed to reduce the borrower's debt service burden to a level that he appears able to handle. Through May, the Farmers
Home Administration had guaranteed 259 loans
totaling $36.7 million. I understand, moreover,
that the Farmers Home Administration, under its
regular loan guarantee program, this year already
has guaranteed more than 5,000 loans totaling
nearly $700 million, and that the total outstanding volume of guaranteed loans is approaching $5
billion.
The Federal Reserve also revised and extended its seasonal lending program in March this
year with the objective of making sure that
agricultural banks will have sufficient liquidity to
provide the needed production loans to their
farmer customers. The regular seasonal program, in place since 1973, provides discount
window credit to depository institutions with
limited access to national money markets that
experience recurring seasonal swings in net
needs for funds because of the way their deposit
flows fluctuate relative to their loan demands.
This existing program was liberalized to increase
the portion of the seasonal funding needs that the
Federal Reserve stands ready to supply to small
and midsized institutions. In addition, a temporary simplified seasonal program has been established as an alternative source of seasonal credit.
Aimed particularly at smaller banks substantially
involved in agricultural lending, this program
offers institutions with total loan growth above a
base amount of 2 percent the opportunity to fund
half of any further loan expansion through discount window loans, up to a maximum amount of
5 percent of the institution's total deposits.
In announcing the broadening of its seasonal
credit program, the Federal Reserve noted that
there were few, if any, signs to indicate that
agricultural banks generally would experience
any unusual shortfall of liquidity. The action was
taken, nevertheless, to have in place a means to
offset any unforeseen liquidity strains that might
arise in local areas or for individual banks, thus
threatening the necessary flow of credit to farmers. Total borrowing in our seasonal program is
currently running at about $150 million. This
figure is below that of last year at this time, the
difference reflecting mainly easier bank funding
conditions in the money market.
The Federal Reserve, as well as the other
to Congress
617
federal banking agencies, earlier this year reiterated its policy of instructing bank examiners to
refrain from taking supervisory actions that
would discourage banks from exercising appropriate forbearance when working with farmers or
other small businesses with delinquent loans. It
is not the intent of this policy to encourage or to
permit loan decisions that are inconsistent with a
bank's long-term safety and soundness. The policy recognizes, however, that if there is good
reason to believe that a borrower's difficulties
are temporary in nature, it is prudent banking
policy to extend due dates on his loans and in
some cases to grant additional credit to carry him
over a period of distress. Reserve Banks have
designated senior review examiners with expertise in supervising farm banks to oversee the
administration of this policy.
While the credit-related programs and practices that I have just reviewed have assisted
farmers to obtain credit accommodation, I wish
to emphasize that they do not offer a solution to
the problems facing the farm sector. Indeed, no
credit program can do that because, fundamentally, the farmer's problems are not traceable to
an inability to obtain credit.
Reference to experience during the current
year will help illustrate this point. There was
considerable concern early this year that a fairly
large number of farmers would not be able to
obtain credit to finance their production activities. But as matters turned out, most farmers
were able to obtain production loans adequate to
meet their needs either from lending institutions
that had financed them in the past or, if cut off by
these lenders, from alternative sources. Moreover, some who were unable to obtain credit to
fully satisfy their needs, adopted various costreducing measures to plant their crops—such as
using less fertilizer. And in cases in which land
was given up by farmers unable to continue, it
was generally taken up and planted by new
operators. Thus plantings have not been significantly impaired by a lack of credit availability,
and another exceptionally large harvest is in
prospect. That, of course, is not an unmixed
blessing, because, with large harvests also apparently in train in other major agricultural-producing countries and with no indication that effective
demands for such products will expand dramatically, it appears very likely that agricultural
618
Federal Reserve Bulletin • August 1985
prices will remain depressed. Indeed, in response to these prospective supply and demand
conditions, farm prices have been edging down
in recent weeks from already depressed levels.
The implications of these developments for incomes of farmers are obvious—they, too, will
remain depressed.
Thus, as I have reviewed earlier, there is a
good chance that the number of farmers who are
experiencing serious strains will continue to
grow, which, in turn, means that an increasing
number of farm banks, particularly those that
have the greatest concentration of farm loans in
their portfolios, will be encountering growing
difficulties—because of the inability of their
farmer customers to service debts. These conditions will further undermine the capital positions
of more banks, adding to the number that will be
in danger of failing.
In my view the best way to deal with these
very serious problems for banks—and indirectly
provide the best help to farmers—will be to
encourage and to facilitate the merger of weak
banks with stronger banking institutions, particularly those that are not now so heavily involved
in agricultural lending. That action would offer
several important advantages. First, it would
transfer control of the institution's lending re-
sources to a bank with a better management
record. Second, it would provide an infusion of
real, permanent capital into the bank and thus
into agricultural lending in general. Finally,
mergers with banks outside the community of
agricultural banks would promote greater diversification of portfolio risk. In this way, the banking system would come to be better protected
against unforeseen developments that, from time
to time, adversely affect the financial health of
different sectors of the economy.
There is no doubt that the agricultural sector
has been going through some very hard times
because of unanticipated weakness in farm product markets that will no longer support the builtin structure of high indebtedness. Many banks
that have concentrated their lending in the farm
area are thus encountering difficulty because of
the inability of farmers to service their debts, and
it may be that more will be driven to the point of
bankruptcy. But, as I see it, the best way to deal
with an erosion of capital is to obtain replacement funds from present or prospective bank
owners. And when the bank's problems appear
too severe and too fundamental to handle in this
manner, the best solution is to seek mergers with
other institutions that promise a larger, more
stable, lending and deposit base.
•
Statement by Emmett J. Rice, Member, Board of
Governors of the Federal Reserve System, before the Subcommittee on General Oversight and
the Economy of the Committee on Small Business, U.S. House of Representatives, June 25,
1985.
age change in employment in industries dominated by smaller firms was twice that of industries
dominated by larger firms. The vital role played
by small businesses highlights the importance of
ensuring a stable economic and financial environment in which these businesses can operate
and expand.
The environment for business activity has improved appreciably in the past two years. The
rapid and variable inflation of the late 1970s and
the two recessions early in this decade—including the quite steep downturn in 1982—imposed
hardships on all businesses. Small businesses,
which tend to have fewer reserves for weathering
adverse periods and frequently must rely on
external credit sources, no doubt were hit particularly hard. But the environment today is much
improved. Nineteen eighty-three and 1984
saw an unusually strong expansion in real
I appreciate the opportunity to participate in this
hearing on small business and monetary policy.
It is appropriate that we examine these issues
because small businesses are such an important
part of our economic system. They account for
the vast majority of the firms in this country, and
they operate in every area of the economy. Much
of the growth in employment and output in this
country reflects the success of new and small,
but growing, enterprises. Estimates from the
Small Business Administration, for example,
suggest that between 1982 and 1984 the percent
Statements
activity; this growth was accompanied by a substantial moderation in inflationary pressures. Indeed, the inflation rate has remained at or below
4 percent over the past two years, and indicators
show little evidence of price acceleration this
year.
A vital element in the continuing growth of
smaller businesses is adequate access to credit at
affordable rates. In this respect, the prospects for
small business financing have changed noticeably for the better. Short-term interest rates are
at their lowest levels in five years, and the prime
rate recently was lowered to W2 percent. These
favorable economic and financial developments
are reflected in the attitudes of the owners of
small businesses: surveys reveal that these owners are quite optimistic about future economic
conditions, and this optimism is reflected in their
plans for capital spending and employment in
coming months.
Nonetheless, not all the problems of businesses have gone away. In particular, some
sectors of the economy have not shared in the
recovery, and small businesses operating in
these areas have experienced some difficulties.
The problems in agriculture are of concern, and
they have created stresses for nonagricultural
businesses in rural areas as well. Export industries and those industries subject to import competition have had difficulty competing with foreign goods as a result of the prolonged rise in the
foreign exchange value of the dollar. This latter
factor perhaps has had less influence on small
businesses because a smaller proportion of them
operate in the manufacturing sector, which has
been markedly affected. Indeed, small businesses that import goods from abroad have benefited from the prevailing pattern of exchange
rates and international trade. Nevertheless, the
deterioration in our trade position has had a
pervasive effect on all businesses through its
broader macroeconomic implications. This deterioration has acted as a strong restraint on domestic production, damping growth in our economy. This weaker demand and lower growth
than would otherwise have occurred have in turn
contributed to financial stresses among some
individual firms, whose earnings and cash flow
have come under pressure.
As problems have persisted and accumulated
in some sectors, failures and bankruptcies have
to Congress
619
resulted. An index of business failures has risen
in recent months, and bankruptcy filings, typically a quite volatile series, have remained at a
fairly high level. The data in these areas are very
difficult to interpret, however. Changes in the
bankruptcy laws in 1979—which make filing for
bankruptcy an easier process—have made comparisons across different time periods difficult.
While the actual number and size of firms that
are failing is difficult to ascertain, we are aware
of, and concerned about, the trend shown by the
available statistics. In part, the data may reflect
the cumulative effect on small businesses of the
stresses incurred in earlier years that perhaps
were exacerbated by the recent slowing in economic activity. Another element may be related
to the life cycle of new businesses. There has
been a sizable increase in the number of new
incorporations since 1982. Historically, about
half of firm failures have occurred among enterprises that were five years old or less. Firms that
opened in 1982 or 1983 only now may be feeling
financial pressures as the resources of their owners are exhausted. The recent slowing in economic activity and the unwinding of pent-up
demands likely also have exposed new firms to
increasing competitive pressures.
These problems can be addressed by continuing to direct public policy toward a sustainable
rate of growth in an environment of price stability. Such policies will have a salubrious effect on
business of all sizes. In such an environment,
financial uncertainties will be reduced for both
borrowers and lenders, and credit needs can be
more efficiently met. Past studies have suggested
that small businesses have relatively limited access to equity capital and thus are heavily reliant
on debt financing, particularly commercial bank
loans, to meet their funding needs. Because of
the structure of their balance sheets, interest on
debt likely absorbs a relatively greater portion of
cash flow than at larger firms. Both the cost and
the availability of credit, therefore, are crucial
issues for small business.
Despite some problems, financing opportunities of small businesses appear more positive
than at any time in the last few years. First, as I
noted earlier, market interest rates have declined
substantially. In particular, the prime rate has
declined about 350 basis points from its peak in
1984, and relative to 1982, the reductions are
620
Federal Reserve Bulletin • August 1985
even more substantial. These changes in interest
rates have translated into substantial cost reductions for small businesses.
Second, small businesses are less likely to be
cut off from credit owing to disintermediation. In
earlier periods, lending at banks, particularly at
small banks, was constrained when they had
difficulty attracting funds as a result of limitations on the interest rates that were payable on
deposits. Small businesses often encountered
trouble obtaining credit at any price under these
circumstances. Deregulation of the rates that
financial institutions can pay on most deposits
lessens the likelihood of disintermediation during
periods of high rates and should help assure
adequate access to credit for small businesses.
There will, of course, be periods when interest
rates are high and credit is tight, but it does not
seem likely that small businesses will be rationed
out of the credit market in the future. Indeed,
credit flows to small businesses have been strong
recently. Growth in business loans at small
banks, which make a very large share of their
loans to small businesses, has equaled or exceeded that at large banks in the past two and one-half
years.
Third, legislation and regulations also have
been employed to increase the access of small
businesses to credit. The Community Reinvestment Act encourages banks to meet the credit
needs of their community, which encompasses
their small business community. An institution's
performance under the act is assessed during
periodic bank examinations, and it is one of
several factors that are considered by regulatory
agencies when applications for mergers, acquisitions, or holding company formations are evaluated. Through this process, the Federal Reserve
System encourages banks to be flexible in meeting the needs of small business.
Finally, sources of capital also have improved
as small businesses have increased their presence in equity markets. Since 1983, almost 1,500
stock registrations have been recorded by firms
making their first, or initial, public offering.
Although this figure also includes larger firms, it
indicates a market receptive to new offerings,
which may ease the access to equity capital for
smaller firms.
In my discussion this morning, I have focused
upon aggregate trends in the small business sector. However, small businesses are a diverse
group, and individual firms face a wide variety of
needs about which it is difficult to generalize.
Aggregate statistics thus may obscure some of
the problems of which policymakers should be
aware. To deal with this concern, the Federal
Reserve recently established Advisory Councils
to the Federal Reserve Banks composed primarily of representatives from small business and
agriculture. Since the councils are based at the
District Banks, a wide variety of geographic
areas will be represented. These councils have
been structured so that each one can best reflect
the characteristics of the District. Each council
will meet regularly with the President of its
District Bank, and at least once a year, representatives of the councils will meet with the Board
of Governors. We are hopeful that these councils
will become effective channels of communication
between the small business community and the
Federal Reserve System.
In conclusion, there have been improvements
in the environment in which small businesses
operate during the past few years. Their cost of
credit has declined and their access to credit has
expanded. Legislation such as the Community
Reinvestment Act and groups such as the Reserve Bank Advisory Councils will help us continue to monitor the needs of the small business
community. Problems still remain, of course, but
we must not forget that the most serious problem
that small businesses have faced in this decade
has been inflation and the resulting high interest
rates. During periods of inflation, financing costs
of small businesses increase rapidly, and profit
margins are squeezed. Public policies that are
oriented toward sustained growth but that do not
sacrifice price stability are also policies that
create an environment in which small businesses
can
flourish.
•
Statements
Statement by Paul A. Volcker, Chairman, Board
of Governors of the Federal Reserve System,
before the Subcommittee on Telecommunications, Consumer Protection, and Finance of the
Committee on Energy and Commerce, U.S.
House of Representatives, June 26, 1985.
I appreciate this opportunity to present the views
of the Federal Reserve on the regulation of the
market for Treasury and federally sponsored
agency securities. My remarks will be relatively
brief because your subcommittee is already well
informed about the developments that have
prompted consideration of the need for formal
regulation of these markets. By way of background, however, I should emphasize two
points.
First, the problems that have arisen recently
have not affected substantially the core of the
government securities market—that is, the dealers accounting for the bulk of trading activities,
engaging more or less continuously in marketmaking, and participating regularly in the distribution of new Treasury securities. Consequently, the market has continued to function with a
high degree of efficiency and liquidity.
Second, the failure of some dealers operating
at the periphery of the market, both in recent
months and in earlier incidents, did have severe
adverse repercussions for some customers. The
insolvency of a number of thrift institutions was
precipitated, while other institutions involved in
financing or servicing the fringe dealers were
placed in some jeopardy. In our highly interrelated and interdependent financial markets, these
developments carried at least the seeds of more
widespread systemic problems.
In reviewing these circumstances, we have
concluded that the legislative authority providing
for registration, appropriate recordkeeping, and
inspection of those representing to deal in government and federally sponsored agency securities is desirable, and certain minimal regulatory
authority should be provided with respect to
certain trading practices. We also believe, however, that the legislation should be framed in
such a manner as to avoid unnecessarily detailed
and costly regulation and supervision—that the
mandate given to the regulatory body (or bodies)
should provide only limited powers directly related to the integrity of trading practices.
to Congress
621
As you know, the Federal Reserve already
exercises a degree of surveillance over the government securities markets as an integral part of
our responsibilities for conducting open market
operations, for monetary policy, and for acting
as fiscal agent in the sale and transfer of Treasury
and certain sponsored-agency debt. That surveillance activity has centered particularly on the socalled primary dealers—those dealers with
whom we have (or are contemplating) a business
relationship. It is aimed, in the first instance, at
informing ourselves of the financial condition of
our counterparties in transactions. That surveillance also encourages the maintenance of liquid
markets for our open market operations and the
Treasury's sales of securities.
Rather close surveillance of those with whom
we deal—the 36 so-called primary dealers—is a
natural outgrowth of our business relationship. It
has appeared to work effectively, and is not
dependent on legislation. In all the considerations of the need for legislation, the Federal
Reserve, the Treasury, and the Securities and
Exchange Commission (SEC), have assumed
that this surveillance of the primary dealers by
the Federal Reserve will be maintained in essentially the current mode.
While the primary dealers account for the bulk
of dealer participation in the government and
"agency" markets, the activities of others have
apparently been expanding. In response, the
Federal Reserve began to gather data, on a
voluntary basis, from the dealers with whom we
do not trade. We have taken other steps, such as
suggesting guidelines for capital adequacy and
educating investors and lenders in appropriate
techniques, to protect the integrity of the marketplace.
However, developments also suggest the inherent limitations of such a voluntary approach.
The Federal Reserve has no authority over the
"fringe" dealers, cannot examine them, and
does not have a business relationship with them.
Under those conditions, a dealer wishing to
avoid official scrutiny or surveillance can do so.
Consequently, our present approach, for other
than primary dealers, cannot be counted on to
minimize fraudulent behavior or excessive risktaking at the expense of third parties. Indeed, a
purely voluntary surveillance program runs the
risk of seeming to offer more assurance to cus-
622
Federal Reserve Bulletin • August 1985
tomers of these dealers than, in fact, it can
deliver—a position in which we do not wish to
find ourselves.
The SEC has reviewed with you the steps
taken by other regulatory and advisory bodies
and investors to help further assure the integrity
of the marketplace. These steps are constructive,
and if maintained, will certainly help greatly to
guard against a repetition of recent problems. We
support those efforts.
At the same time, we recognize that, contrary
to our own earlier expectations, this kind of
market and regulatory response after previous
problems materialized did not prove fully adequate. Nor can new legislative authorities or
regulatory approaches provide assurance against
all fraud, excessive risk, or new weaknesses in
trading practices. Nonetheless, we now believe
that the balance of consideration does point to a
more formal process of registration, inspection,
and regulation for all government securities dealers, provided such official intrusion is limited
only to areas at the core of our concerns.
The potential costs of highly detailed and
expansive regulations are real. We want to preserve the extraordinary liquidity and resiliency
of the largest financial market in the world.
Those characteristics help make Treasury securities a unique investment vehicle for both domestic and foreign holders, and an efficient market is
essential both to the Treasury in selling its securities and to the Federal Reserve in conducting
monetary policy. We want to preserve free entry
and to avoid imposing heavy operating costs.
Registration and rulemaking need not deal with
the complexities of other markets involving
many different issuers and less standard financing instruments.
In our view, any structure of regulation for the
Treasury market should embody—and be confined to—three principal elements.
First, it should provide for registration of
dealers and for authority to bar or limit the
participation of those who, through violations of
securities laws or otherwise, have clearly demonstrated that they should not be allowed to
occupy a position of trust in the government
securities markets. While a registration requirement can raise difficult issues, including the
necessity to define a dealer, it is important that
those who have been disciplined in other markets
not be allowed to find refuge in trading government securities—the very securities that investors turn to for assurance of relative safety and
liquidity.
Second, registration implies the need for certain minimum guidelines for recordkeeping and
auditing so that continued adherence to the standards established for registered dealers can be
monitored. To assure the accuracy of these reports and conformance to standards, legislation
should include the authority to inspect registered
dealers on a regular basis and when problems are
suspected.
Finally, there should be some mechanism for
writing and enforcing rules to foster the financial
soundness of government securities dealers and
to encourage, in a limited area, market practices
consistent with the safety and the efficiency of
the market. Obvious cases in point are guidelines
with respect to capital and such practices as the
collateralization of repurchase agreements
(RPs). Legislation might permit regulation of
certain other practices—such as appropriate
margins or when-issued trading—if needed, but
authority should be confined to areas that involve a direct threat to the integrity of the
marketplace.
Inevitably, even such limited regulation as we
would contemplate would entail some costs.
There would be expenses arising directly out of
the process of writing, enforcing, and complying
with the regulations. These expenses would be
borne by dealers and their customers in a manner
that is not easily identified. But these administrative costs would appear to be quite modest,
relative to the size of the market. Provided the
basic efficiency and liquidity of the market is not
impaired, interest costs should not be affected. It
is concern over the latter possibility that militates against the degree of regulation that is
characteristic of other securities markets. Within
the limited framework proposed, regulation
could reinforce the performance of, and confidence in, the market.
Failure to regulate may itself have costs. Savers and taxpayers in Ohio and Maryland can
testify that difficulties in the government securities market can have costly repercussions beyond the parties directly involved in the securities transactions themselves. More generally,
loss of confidence as a result of failures in sectors
Statements
of the market could affect other soundly operated, capitalized, and financed dealers, and potentially affect trading conditions generally.
With respect to the specific structure of rulemaking and oversight, we believe that the approach of H.R. 2032 would point to overly detailed regulation. We have sympathy for the
concept of using a self-regulatory organization
(SRO) to write rules and of employing existing
regulatory bodies or SROs to enforce them.
However, we do not believe that the Municipal
Securities Rulemaking Board (MSRB) provides
an appropriate base for such an entity. Its traditions and methods of approach are inappropriate
to the government securities market, and the
grant of authority provided by H.R. 2032 is
overly broad. We also question whether the
SEC, acting alone, is the most suitable agency to
exercise ultimate oversight authority over the
market for Treasury and sponsored-agency securities.
There are large differences between the taxexempt and the taxable government markets.
The former deals with a multitude of issuers of
varying credit quality; underwriting is usually
done by syndicates of dealers with securities
frequently awarded on a negotiated rather than a
competitive bid basis, and a much higher proportion of final sales are made to relatively small
individual investors. Those circumstances may
well warrant a comprehensive set of regulations
governing many aspects of dealer behavior, as
the MSRB has issued. But those regulations, by
and large, do not provide an appropriate starting
point for regulating the government securities
market, and would, in fact, impose unnecessary
and excessive burdens. For example, in the
context of the limited number of issuers and
issues and the sophistication of customers in the
Treasury and agency markets, detailed rules in
such areas of MSRB concern as customer suitability, competitive practices, and dealer education, do not appear necessary. On the other
hand, the MSRB has no experience in regulating
RPs—a first priority of rulemaking in the Treasury market—since this form of financing is not
so commonly used in the municipal market.
If an SRO were to be established as the
appropriate rulemaking body for the government
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623
and agency securities markets, we believe that
its responsibilities should be limited to those
unique markets. Moreover, the Federal Reserve
has a body of expertise and substantive concerns
that, in our view, suggests more than a consultative role in overseeing an SRO. The interests of
the Treasury and the SEC would also need to be
taken into account.
Last week, Chairman Shad described to you a
proposed regulatory structure emerging from discussions among the Federal Reserve, the Treasury, and the SEC. That approach provides an
acceptable alternative framework to an SRO.
The elements that we consider essential for legislation are included: registration; inspection; and
provision for limited regulation of financial standards and key market practices. Properly implemented, the principal benefits of regulation could
be captured at low cost.
Some legislative proposals would empower the
Federal Reserve to inspect and to enforce regulations for primary dealers. We will, in any event,
need to continue our surveillance of all primary
dealers through the Federal Reserve Bank of
New York, and I do not believe we need any new
or special legislative base for that effort. We will
continue to insist that primary dealers play an
active role in Treasury financing operations and
will continue to collect data from them that we
need on a regular and frequent basis. And we
would anticipate that they will continue to meet
high financial standards, even beyond those required of other dealers.
In conclusion the Federal Reserve supports
legislation providing for registration, inspection,
and limited regulation of dealers in government
and sponsored-agency securities. However, we
share the concerns expressed by others that
H.R. 2032, as drafted, does not provide an
appropriate framework for such regulation.
We do find the joint Treasury-SEC-Federal
Reserve plan acceptable for these purposes. We
do not exclude the possibility that other regulatory structures—including an SRO rulemaking
body—could work as well, or even better.
We would, of course, be glad to work further
with the subcommittee in developing these concepts into appropriate legislation.
•
624
Federal Reserve Bulletin • August 1985
Statement by Paul A. Volcker, Chairman, Board
of Governors of the Federal Reserve System,
before the Subcommittee on Economic Goals
and Intergovernmental Policy of the Joint Economic Committee, June 27, 1985.
I appreciate the opportunity to appear before this
committee to discuss issues involved in the budgetary treatment and procedures of the Federal
Reserve System. Attached to my statement are
several appendixes that discuss these questions
more completely.1
The appropriate budgetary treatment of the
Federal Reserve has been considered a number
of times. Each time the Congress has examined
the issue, it has concluded that the Federal
Reserve's functional independence is inextricably intertwined with its budgetary independence.
I believe that the ability of the Federal Reserve,
as provided by the Congress, to conduct its
monetary policy with relative freedom from dayto-day political pressure has served the nation
well over the years. Maintaining the independence that is necessary to accomplish that objective should remain in the forefront of any consideration to change our budgetary treatment.
I realize that you are sensitive to those concerns. I understand that it is not your intent to
propose that the Federal Reserve be subjected to
the regular budget control processes of the administration or to congressional appropriations.
Your concern, as I understand it, is to assure that
adequate information is available to permit and
encourage appropriate congressional review and
public understanding of Federal Reserve spending.
In approaching that problem, we share the
common ground that the Federal Reserve is
accountable to the Congress, and through the
Congress, ultimately to the American public, for
its spending. The fact is that we do make available substantial and detailed information on our
spending and on our operations. Budgets for
both the Board of Governors and the Reserve
Banks are discussed and approved in open meetings of the Board. I would submit that, in those
1. The attachments to this statement are available on
request from Publications Services, Board of Governors of
the Federal Reserve System, Washington, D.C. 20551.
respects, our accounts and budget process are
already an "open book," as they should be.
Following my earlier discussions with you, I
have reviewed this matter in detail. I would
readily agree that the "open book" is hard to
read—sometimes confusing and enormously
complex. I believe there are changes that we can
implement to make our budgets more conveniently accessible and more generally useful. For
instance, with that objective in mind, this year's
Annual Report of the Board of Governors of the
Federal Reserve System to the Congress includes a chapter reviewing Federal Reserve
spending over the past 10 years and our budgets
for 1985.2 We intend to present similar information in each Annual Report in the future.
The burden of my comments this morning is
that the legitimate objectives of disclosure and of
public accountability can be best achieved by
retaining independent budgetary reporting for
the Federal Reserve, with our net earnings, as at
present, reflected in the regular budget document. Integrating Federal Reserve expenditures
into the federal budget, contrary to our entire
history and earlier congressional decisions,
would, I fear, be interpreted as a clear step
toward Executive influence and control over the
central bank. I am convinced that, in the end, the
effect would be to make our operations less
intelligible and "transparent" rather than more.
At the same time I believe we can better achieve
your objectives by working with the Congress to
improve procedures for reporting and oversight.
THE FEDERAL
SELF-FUNDING
RESERVE AS A
CENTRAL
BANK
The Congress established a central bank for the
United States much later in the nation's history
than has been the case in most other industrialized countries. To a considerable extent this
reflected long and strongly felt concerns about
the concentration of economic power. At the
same time, the Congress clearly wished to insulate the Federal Reserve from partisan politics.
These concerns led to the creation of a regional
2. "Expenses, Employment, and Productivity," Board of
Governors of the Federal Reserve System, 71st Annual
Report, 1984 (1985), pp. 201-10.
Statements
system, with operational responsibilities diffused
among 12 Reserve Banks, each with its own
board of directors and with the entire system
supervised by the Board of Governors in Washington. In that connection, the Congress plainly
understood that the ability to make considered
monetary judgments, independent of day-to-day
pressures of the political arena, required freedom
from outside fiscal control. These concerns were
also evident in the important revisions of the
Federal Reserve Act in 1935, which cast the
System in essentially the form it has today.
The desirability of independent funding of the
Federal Reserve and freedom from potential
domination by the executive branch has been
reaffirmed each time questions have been raised.
And it has not been a partisan or a parochial
position. For instance, in 1975 six former Secretaries of the Treasury, in a letter to Senator
Proxmire, stressed how important they felt it was
that the Federal Reserve retain its status as a
nonappropriated agency in these words:
We all feel that the Congressional reasoning of 60
years ago which purposely insulated the Federal Reserve f r o m immediate political pressures is even more
valid today. It is probably more difficult today than 60
years ago for the Congress to take a long view that
may well appear to conflict with immediate problems.
And yet, this is precisely what the Federal Reserve
must do each day and why we feel that its independence must b e p r e s e r v e d .
We all agree f r o m a combined total of many years of
experience in government that the independence of the
Federal R e s e r v e would inexorably be eroded by the
appropriations process exposing our country to great
potential danger. 3
I should also point out that the budgetary
status of the Federal Reserve is hardly unique: it
is indeed the norm for central banks around the
world. For instance, whatever other arrangements surround their functional independence,
all the central banks of the G-10 countries finance their expenditures out of their own income. Typically, they return all or major parts of
their income in excess of expenses to the national treasury, as is the case in the United States,
but in no instance is a budget statement for the
3. Federal Reserve Reform and Audit. Hearings before the
Senate Committee on Banking, Housing and Urban Affairs,
on S. 2285 and S. 2509, 94 Cong. 1 Sess. (Government
Printing Office, 1976), p. 140.
to Congress
625
central bank included in the budget for the central government. That approach by other major
industrialized countries reflects widely held concerns about assuring operational autonomy for
central banks.
I recognize and appreciate that the stated aim
of H.R. 1659 is not to disturb the present method
of funding or expense control by the Federal
Reserve, much less to change the status of the
System within government. My concern, nonetheless, is that the proposed inclusion of Federal
Reserve expenditures within the Executive's
budget document could be the first step down a
slippery slope, encouraging those who clearly
would wish to impair our functional independence by bringing the System more fully into the
budgetary and appropriations process or otherwise.
FEDERAL
RESERVE
SYSTEM
BUDGET
The objective specifically sought by H.R. 1659
can, in my judgment, be reached more effectively
and more cheaply by other approaches that are
consistent with present procedures and budgetary treatment. To help place this issue in context, I would like to summarize the existing
budget process and results.
The
Process
The Federal Reserve has an intensive budget
planning and control process for both the Reserve Banks and for the Board of Governors.
That process reflects throughout strong concern
with both economy and efficiency.
Initial general guidelines for System spending
are approved by the Board of Governors on the
basis of analyses and projections of expected
work loads, trends in prices and wages, and
productivity gains in each area of Federal Reserve responsibility. Within each of the Reserve
Banks, directors drawn from the private sector
participate in the budgetary process, bringing to
bear a great deal of business experience. They
must approve the budgets of their banks.
I would emphasize too that more than 40
percent of Reserve Bank budgets represent expenditures for "priced services." As a matter of
626
Federal Reserve Bulletin • August 1985
law and principle, these services must meet a
market test in that all expenses, including overhead and the imputed cost of capital and taxes,
are covered by charges.
As a last step, budgets for both the Reserve
Banks and for the operations of the Federal
Reserve Board are presented to the Board of
Governors for its review and approval at meetings that are open to the public.
The
Results
In the end, the effectiveness of the process must
be measured by results. In the 10-year period
from 1974 to 1984 Federal Reserve spending has
increased at an average annual rate of about 0.7
percent in constant dollars. In the same period,
total System employment has fallen about 13
percent, from roughly 28,000 to 24,000. Over the
same decade, the principal measures of operational work load have increased 50 to almost 400
percent. The long-term decline in Federal Reserve employment in the face of persistent increases in output reflects, in large measure,
persistent efforts to improve productivity in the
operating functions of the Federal Reserve
Banks.
For 1985 the Federal Reserve Banks and the
Board of Governors have budgeted total operating expenditures of approximately $1.2 billion.4
Of this amount, some $900 million reflects operational services to financial institutions, the public, the Treasury, and government agencies,
most of which is recovered by charges or reimbursements. Overall, this amount will represent
an increase of about 5 percent, in nominal terms,
over the 1984 spending level.
As I have indicated, under the provisions of
the Monetary Control Act, the System must
recover the full cost of most services, including
an adjustment for imputed taxes and the cost of
capital, that it makes available to depository
institutions. In this area—clearing checks, providing wire transfers, and other payment services—the Federal Reserve has to compete ef4. This amount does not include another $175 million,
which will be paid to the Bureau of Engraving and Printing for
Federal Reserve notes to be distributed to the public. This
sum is not usually included in analyses of Federal Reserve
spending because it represents simply the cost of providing
currency.
fectively in terms of price and quality with other
actual and potential suppliers of such services. In
1984 the Federal Reserve met this test and recovered the full cost of priced services.
As fiscal agent for the U.S. government, the
Federal Reserve is responsible for issuing and
redeeming a variety of Treasury and other government debt instruments ranging from savings
bonds and food stamps to large-denomination
Treasury bills, notes, and bonds. We are reimbursed in whole or in part for these services by
other agencies, bringing our receipts for services
to more than $600 million this year, about half
the total expected Federal Reserve expenditures
budgeted for 1985.
While this may not be the time or place to
review the spending record in great detail, I have
attached relevant material and would, of course,
be glad to respond to any questions you may
have. But I do want to affirm that I believe that
further analysis will confirm a disciplined budgetary process and a consistent pattern of economy and efficiency in our actual spending. Indeed
I am not aware that our record in these respects
has been challenged in any material before the
committee.
IN FORMA TION NOW P UBLICL Y A VAIL ABLE
ON FEDERAL RESERVE
SPENDING
The Federal Reserve now makes available detailed information on its spending. Much of this
data is drawn directly from the Federal Reserve's accounting and management information
system (Planning and Control System, or
"PACS") used for internal control. That system
contains data on spending by every Reserve
Bank and branch office by service and subservice line and by object of expenditure (that is,
salaries, materials and supplies, equipment, travel, and others). All in all, the PACS reports
provide data on 96 services and subservices by
71 detailed objects of expenditure, and on measures of productivity and service quality. These
data are publicly available on a quarterly basis
with a six-week time lag, and I know of no other
governmental body that provides publicly so
much detail about its spending and productivity
so promptly.
PACS information by its nature is retrospec-
Statements
tive. However, the Federal Reserve also makes
available late in each year information in the
form of tables and analyses of anticipated expenditures for the forthcoming year. These tables
and analyses are released to the public before the
open Board meetings at which spending levels
for the Board and the Reserve Banks are set.
Whether we have provided all available information in as readily convenient a form as possible is another question. I believe improvements
can be made. We are working to that end.
DIFFICULTIES
WITH THE
OF H.R.
1659
APPROACH
Our Federal Reserve budgeting generally follows
business accounting principles, including depreciation of capital assets. The budgets are on a
calendar-year basis, and we do not regularly
make multiyear expenditure forecasts.
H.R. 1659 would require changes in that approach. All budget information would be provided in the same format and with the same accounting conventions as used for "on budget"
agencies. The data would then be included in the
federal budget documents although without provisions for executive branch review or for congressional appropriations.
Technical issues, as well as fundamental philosophical concerns, would need to be resolved
before such an approach could be adopted. And,
I do not believe that the results would effectively
achieve the limited aims sought—that is, improved understanding and review of our expenditures by the Congress or by the public.
The technical concerns are threefold: first,
problems arising from differences in the accounting procedures used by the Federal Reserve and
those employed by budgeted agencies; second,
the cost that would be associated with the necessity of maintaining a dual accounting system; and
third, the difficulties of meaningfully forecasting
Federal Reserve earnings several years ahead.
With respect to accounting conventions, the
Federal Reserve is a "business-like" organization that basically keeps its books as would a
private concern—that is, using generally accepted accounting principles (GAAP). The primary
difference in approach from federal budget concepts is that the Federal Reserve capitalizes and
to Congress
627
depreciates major assets rather than expensing
them in the year that they are acquired.5 Indeed,
we could not sensibly price our services on any
other basis, given that the production of these
services is highly capital intensive and that our
prices, by law, must be set in a manner that is
consistent with methods used by private-sector
providers. Specifically, expensing computers
and other equipment in the year acquired—
rather than following GAAP—would result in
widely fluctuating prices for Federal Reserve
services, rendering the pricing approach stipulated by the Monetary Control Act practically impossible. More generally, from the standpoint of
budgetary management of both the Board of
Governors and the various Federal Reserve
Banks—and the comprehensibility of those budgets to the public—GAAP accounting seems
more sensible.
The problems implicit in federal budgetary
treatment could be overcome only by maintaining dual accounting systems, which would involve some sizable developmental and maintenance costs if done with precision. And two
parallel accounting systems are more likely to
contribute to confusion than to clarity.
H.R. 1659 also would require the Federal
Reserve to forecast our revenues. The great bulk
of the Federal Reserve's earnings are a byproduct of the implementation of monetary policy. Earnings on our portfolio of securities account for more than 95 percent of Federal
Reserve receipts and reflect mostly the amount
of currency outstanding, congressional and Federal Reserve decisions as to the level of reserve
requirements, and decisions on open market
operations and on the level of interest rates.
Meaningful forecasts of those variables are simply not feasible and would be liable to gross
misinterpretation if considered indicative of future monetary policy. I would also point out that
5. The GAAP approach used by the Federal Reserve is
particularly recommended by the accounting profession for
organizations that must cost and price products. See U.S.
General Accounting Office, An Examination of Concerns
Expressed about the Federal Reserve's Pricing of Check
Clearing Activities, Report to the Chairman, Senate Committee on Banking, Housing, and Urban Affairs, by the Comptroller General of the United States, January 14, 1985. GAO/
GGD-85-9; and Arthur Andersen & Co., Federal Reserve
System: Report on Priced Services Activities (Arthur Andersen, forthcoming, 1985).
628
Federal Reserve Bulletin • August 1985
forecasts of costs and receipts in the priced
services area would also be subject to market
uncertainties and necessarily would be somewhat speculative.
POLICY
CONCERNS
My greatest concerns about the approach proposed in H.R. 1659 transcend these technical
considerations.
We plainly have the obligation to report to the
Congress fully on our policies and operations.
My sense is that the arrangements .for such
reporting have, in most respects, worked relatively well over the years. As you know, as a
matter of law, I testify four times each year
before the Congress on the general conduct of
monetary policy. Altogether, other Governors,
Federal Reserve officials, and myself appeared
formally before the Congress on 34 occasions
last year, and 34 times so far in 1985, testifying
on a variety of subjects.
The question raised is whether, in this testimony, in other reports, or otherwise, there is
enough focus on our "housekeeping" responsibilities—running an economical, cost-effective
operation. Appropriate congressional oversight
of Federal Reserve spending can, and should,
contribute to that process. I believe this oversight can be done in a manner that does not raise
questions about the independence of our budgetary processes and that contributes to public
understanding.
To those ends, I would suggest the following:
1. Within the Federal Reserve, we take steps
to assure that the mass of information now
available in several documents about our spending and budgetary process be presented at times
and in a manner more accessible to public and
congressional oversight. We are taking steps in
that direction and would welcome further suggestions that you may have.
2. We retain our present accounting format,
using GAAP concepts rather than shifting to the
federal budget accounting conventions. My
strong belief is that Federal Reserve spending is
likely to receive more, and better informed,
congressional and public scrutiny as part of a
separate report consistent with GAAP accounting.
The net fiscal impact of Federal Reserve operations is already fully and accurately reported in
the budget. Forcing the full array of supporting
material into the dark recesses and precise format of a budget presentation developed for quite
different purposes—a presentation that already
runs to thousands of pages—could hardly be a
service to public understanding. It would, I suspect, become just another hard-to-understand
"special analysis," alongside a number of others
that are virtually incomprehensible to those who
are untutored in the intricacies of budget accounting for government or for governmentsponsored enterprises.
3. Finally, the appropriate oversight committees in the House and in the Senate might wish to
resume a practice, followed for some years in the
Senate, of annual hearings directed specifically
toward the Federal Reserve budget and internal
management. I believe that we, as an organization, benefited from that procedure in the past
and would be glad to cooperate in the future.
In closing, I appreciate the careful way in
which you have undertaken a reexamination of
these questions. Our goals are congruent: to
achieve effective cost containment and appropriate accountability. I believe those aims can be
accomplished in ways that are fully consistent
with our traditional role in government and without raising unintended questions about whether
the conduct of monetary policy will continue to
be free from partisan and passing political pressures.
•
629
Announcements
NOMINATIONS
OF MEMBERS FOR
CONSUMER ADVISORY
COUNCIL
The Federal Reserve has announced that it is
seeking nominations of qualified individuals for
11 appointments to its Consumer Advisory
Council, to replace members whose terms expire
on December 31, 1985.
The Consumer Advisory Council was established by the Congress in 1976 at the suggestion
of the Board, to advise the Board on the exercise
of its duties under the Consumer Credit Protection Act and on other consumer-related matters.
The council meets three times a year.
Nominations should include the name, address, and telephone number of the nominee.
Also, information about past and present positions held, special knowledge, and interests or
experience related to consumer credit or other
consumer financial services should be included.
Nominations should be submitted in writing to
Dolores S. Smith, Assistant Director, Division of
Consumer and Community Affairs, Board of
Governors of the Federal Reserve System,
Washington, D.C. 20551.
STATEMENT ON ACTIVITIES
OF BANKERS TRUST
COMPANY
The Federal Reserve Board has issued a statement on the commercial paper activities of Bankers Trust Company of New York. The Board
decided that these activities, as described in the
statement, do not constitute selling, underwriting, or distributing securities within the meaning
of the Glass-Steagall Act.
The Board's findings were contained in a statement that was filed on June 4, 1985, with the
U.S. District Court for the District of Columbia.
In a June 1984 decision, Securities Industry
Association v. Board of Governors (Bankers
Trust), the Supreme Court ruled that the com-
mercial paper that Bankers Trust places with
investors on behalf of issuers unrelated to the
bank is a security for purposes of the GlassSteagall Act, which generally prohibits banks
from underwriting or dealing in securities.
The Court, however, expressed no opinion as
to whether the bank's method of placing the
commercial paper constituted "selling," "underwriting," or "distributing" within the meaning of
the act. This issue was subsequently remanded
to the Board for resolution.
In the statement detailing its decision, the
Board said the following:
After reviewing all of the relevant facts of record, the
Board concludes that Bankers Trust's placement of
commercial paper as described in this Statement does
not constitute the "selling," "underwriting," or "distributing," of commercial paper securities for purposes of the Act.
FINANCIAL RESULTS
FOR PRICED SERVICE
REPORTED
OPERATIONS
The Federal Reserve Board on June 5, 1985,
reported financial results of Federal Reserve
priced service operations for the quarter ended
March 31, 1985.
The Board issues a report on priced services
annually and a priced service balance sheet and
income statement quarterly. The financial statements are designed to reflect standard accounting practices, taking into account the nature of
the Federal Reserve's activities and its unique
position in this field.
AMENDMENT
TO REGULATION
G
The Federal Reserve Board has amended its
Regulation G (Securities Credit by Persons Other
than Banks, Brokers, or Dealers) to permit persons other than banks, brokers, or dealers to
630
Federal Reserve Bulletin • August 1985
extend credit to trusts for employee stock option
plans (ESOPs). The amendment will permit savings and loan associations, insurance companies,
and finance companies to extend credit on margin stocks on the same basis as banks. The
change became effective July 22, 1985.
AMENDMENTS
TO REGULATION
T
The Board has amended its Regulation T (Credit
by Brokers and Dealers) to permit broker-dealers to extend and to arrange credit for employee
stock ownership plans (ESOPs). The change
became effective July 22, 1985.
The Board also adopted an amendment to
Regulation T that changes the initial margin
requirements for the writing of options on equity
securities. The amendment will permit a uniform, premium-based system of margin requirements for all types of option contracts. This
system will incorporate the maintenance margin
required by the national securities exchanges or
associations under rules approved by the Securities and Exchange Commission. This action is
intended to reduce computer programming requirements for the brokerage industry because it
will use one basic program for all types of
options.
This amendment becomes effective September
30, 1985.
PROPOSED
ACTION
The Federal Reserve Board has requested public
comment by July 22, 1985, on applications by
Bankers Trust New York Corporation and J.P.
Morgan & Co. Incorporated to engage in commercial paper advisory and placement activities
consisting of acting as agent for issuers in connection with the placement of such notes with
institutional investors.
SYSTEM
MEMBERSHIP:
ADMISSION OF STATE
BANKS
The following banks were admitted to membership in the Federal Reserve System during the
period June 1 through June 30, 1985.
Florida
Boynton Beach
Boynton Beach
Ohio
Mentor
Pennsylvania
Camp Hill
Texas
Euless
Carney Bank
Prime Bank
Chase Bank of Ohio
Commerce Bank
Harrisburg
Landmark Bank
Mid Cities
631
Legal Developments
AMENDMENTS
TO REGULATIONS
G AND T
The Board of Governors has amended its Regulation
G, Securities Credit By Persons Other Than Banks,
Brokers, or Dealers to permit non-bank, non-broker
lenders to extend credit to trust for employee stock
option plans (ESOPs) qualified under section 401 of
the Internal Revenue Code without regard to the credit
limitations normally applicable under Regulation G.
Effective July 22, 1985, the Board a m e n d s 12 C . F . R .
Part 207 in the following manner:
Part 207—Securities Credit by Persons Other
Than Banks, Brokers or Dealers
1. The authority citation for 12 C . F . R . 207 continues to
read as follows:
Authority: Sections 3, 7, 8, 17, and 23 of The Securities
Exchange Act of 1934, as amended (15 U . S . C . 78c,
78g, 78q, and 78w).
2. Section 207.5 is a m e n d e d by revising the heading
and adding a new paragraph (c) as follows:
Section 207.5—Employee Stock Option,
Purchase and Ownership Plans
tion rules that have been approved by the Securities
and Exchange Commission ( " S E C " ) .
Effective S e p t e m b e r 30, 1985, the Board amends
12 C . F . R . Part 220 as set forth below:
Part 220—Credit by Brokers and Dealers
1. The authority citation for 12 C . F . R . Part 220 is
revised to read as follows:
Authority: Sections 3, 7, 8, 17, and 23, of T h e Securities Exchange Act of 1934, as a m e n d e d (15 U . S . C .
78c, 78g, 78h, 78q, and 78w).
2. Section 220.5(c)(2) is revised to read as set forth
below:
Section 220.5—Margin Account Exceptions and
Special Provisions
(2) Margin for options on equity securities.
The
required margin for each transaction involving any
short put or short call on an equity security shall be
the amount set forth in § 220.18 (the Supplement).
3. Section 220.18 is revised to read as follows:
(c) Credit to ESOPs
A lender may extend and maintain purpose credit
without regard to the provisions of this part, except for
§§ 207.3(a) and 207.3(o), if such credit is extended to
an employee stock ownership plan (ESOP) qualified
under section 401 of the Internal R e v e n u e Code as
amended (26 U . S . C . 401).
AMENDMENTS
TO REGULATION
T
The Board of Governors is amending its Regulation
T—Credit by Brokers and Dealers, in order to continue the B o a r d ' s present policy of requiring an initial
margin for the writing of options that is identical to the
maintenance margin required by exchange or associa
Section 220.18—Supplement: Margin
Requirements
The required margin for each security position held in
a margin account shall be as follows:
(a) Margin equity security, except for an exempted
security or a long position in an option: 50 per cent of
the current market value of the security.
(b) Exempted security, registered nonconvertible debt
security or OTC margin bond: The margin required by
the creditor in good faith.
(c) Short sale of nonexempted security: 150 per cent of
the current market value of the security, or 100 per
cent of the current market value if a security exchangeable or convertible within 90 calendar days
without restriction other than the payment of money
into the security sold short is held in the account.
632
Federal Reserve Bulletin • August 1985
(d) Short sale of an exempted security: 100 per cent of
the current market value of the security plus the
margin required by the creditor in good faith.
(e) Nonmargin, n o n e x e m p t e d security for a long position in any option: 100 per cent of the current market
value.
(f) Short put or short call on a security, certificate of
deposit, securities index or foreign currency:
(1) In the case of puts and calls issued by a registered clearing corporation and listed or traded on a
registered national securities exchange or a registered securities association, the amount, or other
position (except in the case of an option on an equity
security), specified by the rules of the registered
national securities exchange or the registered securities association authorized to trade the option, provided that all such rules have been approved or
amended by the S E C ; or
(2) In the case of all other puts and calls, the
amount, or other position (except in the case of an
option on an equity security), specified by the
maintenance rules of the creditor's self-regulatory
organization.
AMENDMENTS
TO REGULATION
T
The Board of G o v e r n o r s is amending Regulation T to
permit broker-dealers to extend and to arrange credit
for employee stock ownership plans qualified under
section 401 of the Internal Revenue Code.
Effective July 22, 1985, the Board amends 12 C . F . R .
Part 220 as set forth below:
1. The authority citation for 12 C . F . R . Part 220 is
revised to read as follows:
Authority: Sections 3, 7, 8, 17, and 23, of The Securities Exchange Act of 1934, as amended (15 U . S . C .
78c, 78g, 78h, 78q, and 78w).
2. Section 220.9 is amended by revising the heading
and by adding a new paragraph (a)(4) as set forth
below:
Section 220.9—Nonsecurities Credit and
Employee Stock Ownership Account
(4) Extend and maintain credit to employee stock
ownership plans without regard to the other sections
of this part.
*
*
*
*
*
ORDERS ISSUED
UNDER BANK
HOLDING
COMPANY ACT, BANK MERGER ACT,
SERVICE CORPORATION
RESERVE ACT
ACT, AND
BANK
FEDERAL
Orders Issued Under Section 3 of Bank Holding
Company Act
Banco del Pacifico
Guayaquil, Ecuador
Banco del Pacifico (Panama), S.A.
Panama, Panama
Order Approving
Companies
the Formation
of Bank
Holding
Banco del Pacifico, Guayaquil, E c u a d o r ( " B a n c o Pacifico"), and Banco del Pacifico (Panama), S.A., Panama, P a n a m a ( " B a n c o ( P a n a m a ) " ) , have applied for
the B o a r d ' s approval u n d e r section 3(a)(1) of the Bank
Holding C o m p a n y Act (12 U . S . C . § 1842(a)(1)) to become bank holding companies by acquiring the voting
shares of Pacific National B a n k , Miami, Florida
( " B a n k " ) , a proposed new bank.
Notice of the applications, affording opportunity for
interested persons 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 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)).
Banco Pacifico, with total assets of $821 million, is
the largest privately o w n e d commercial banking organization in E c u a d o r and provides a broad range of
commercial banking services in Ecuador. 1 Banco Pacifico o w n s all of the voting shares of Banco (Panama),
which has total assets of $166 million. Bank is a
de novo bank that will operate in the Miami, Florida
banking market. 2 In view of the de novo status of
Bank, and based upon the facts of r e c o r d , the Board
concludes that consummation of the proposed transactions would have no adverse effects on existing or
potential competition and would not increase the concentration of resources in any relevant area. Therefore, competitive considerations are consistent with
approval of the applications.
The financial and managerial resources of Applicants and Bank are considered generally satisfactory
1. Unless otherwise noted, all banking data are as of December 31,
1984.
2. The greater Miami banking market is approximated by all of
Dade and Broward Counties, Florida.
Legal Developments
and their future prospects appear to be favorable.
Thus, considerations relating to banking factors are
consistent with approval. Considerations relating to
the convenience and needs of the community to be
served are also consistent with approval. Accordingly,
the Board has determined that consummation of the
transactions would be in the public interest and that
the applications should be approved.
On the basis of the record, the applications are
approved for the reasons summarized above. The
transactions 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
Atlanta, pursuant to delegated authority.
By order of the Board of Governors, effective
June 3, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Gramley, and Seger. Absent and not voting:
Governors Wallich and Rice.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
The Chase Manhattan Corporation
New York, New York
Order Approving
Acquisition
of Bank
The Chase Manhattan Corporation, N e w York, N e w
York, a bank holding c o m p a n y within the meaning of
the Bank Holding C o m p a n y Act (the " B H C A c t " or
" A c t " ) , has applied for the B o a r d ' s approval under
section 3(a)(3) of the Act (12 U . S . C . § 1842(a)(3)) and
under section 225.14 of the B o a r d ' s Regulation Y
(12 C . F . R . § 225.14) to acquire all of the voting securities of Chase Bank of Ohio ( " B a n k " ) , Mentor, Ohio, a
newly chartered state bank. Bank will be the successor
by merger to Chase Savings Bank of Ohio ( " C h a s e
Savings"), Mentor, Ohio; Chase Savings Bank (Federated) of Ohio ( " F e d e r a t e d " ) , Cincinnati, Ohio; and
the following state chartered savings and loan associations formerly privately insured by the Ohio Deposit
Guaranty F u n d ( " O D G F " ) : The American Savings
and L o a n C o m p a n y ( " A m e r i c a n " ) and The Tri-State
Savings & L o a n Association ( " T r i - S t a t e " ) , both located in Cincinnati, Ohio; and Investor Savings Bank
( " I n v e s t o r " ) and First State Savings and L o a n Association ( " F i r s t S t a t e " ) , both located in Columbus, Ohio.
Applicant proposes to acquire Bank, a commercial
bank to be chartered by the State of Ohio, pursuant to
recently enacted emergency legislation, Ohio Am.
633
Sub. H . B . N o . 492 (May 21, 1985) ( " t h e Ohio A c t " ) .
Upon consummation of the acquisition, Bank will
operate approximately 22 commercial bank branches
in the greater Cincinnati, Columbus, and Cleveland,
Ohio areas. 1
The establishment of Bank and its acquisition by
Applicant is a significant c o m p o n e n t of the solution to
the financial crisis involving savings and loan associations in Ohio that has n o w extended for over two
months. As the Board previously has noted, 2 a number
of Ohio savings and loan associations that are members of the O D G F experienced substantial deposit
withdrawals after the a n n o u n c e m e n t of the closing of
H o m e State Savings Bank, Cincinnati, Ohio. On
March 15, 1985, the G o v e r n o r of Ohio declared an
emergency bank holiday closing all Ohio savings and
loan associations insured by the O D G F , which action
immobilized the f u n d s of over 500,000 depositors in
institutions with assets in excess of $5.5 billion. The
Ohio legislature passed emergency legislation on
March 19, 1985, providing that the closed Ohio savings
and loan associations, including all of the savings
banks and savings and loan associations that are the
subject of this application, could reopen only for the
purpose of permitting limited withdrawals and other
depositor transactions, unless they obtained F S L I C or
FDIC deposit insurance, or the Ohio Superintendent
of Savings and L o a n Associations determined that
they could qualify for federal deposit insurance, or
otherwise finds that the interests of depositors will not
be jeopardized by the reopening. 3
On April 19, 1985, the Board a p p r o v e d , with the
concurrence and at the urging of the Ohio Superintendent of Savings and L o a n Associations, Applicant's
acquisitions of Chase Savings and F e d e r a t e d , which
have continued to operate as state chartered thrift
institutions. The Board acted on those applications
pursuant to the emergency thrift acquisition provisions
of section 8 of the Act.
On May 21, 1985, the Ohio legislature passed the
emergency legislation upon which the subject applica-
1. Applicant anticipates that its acquisition of Bank will proceed in
the following sequence: Applicant will first purchase American.
Applicant will contribute cash to American to enable it to purchase the
shares of Tri-State, Investor, and First State. Applicant will then
contribute to American the shares of Federated and Chase Savings,
which it previously acquired with Board approval under section 4 of
the Act. The Chase Manhattan Corporation, 71 FEDERAL RESERVE
BULLETIN 462 (1985). The five S&Ls will then be merged into
American, which in turn will be converted simultaneously into a
commercial bank with its head office located in Mentor, Ohio.
2 . See
e.g.,
F.N.B.
Corporation,
7 1 F E D E R A L RESERVE B U L L E T I N
340 (1985) Chase Manhattan Corporation, supra.
3. Ohio Am. Sub. S.B. No. 119 § 8 (March 19, 1985).
634
Federal Reserve Bulletin • August 1985
tion is predicated in part to allow consummation of the
transaction proposed in the application. Specifically,
the Ohio Act authorizes the Superintendent of Banks
to approve the organization and acquisition by a bank
holding company located outside of Ohio of a bank in
Ohio that results from the conversion of, or the
assumption of all or a significant portion of the deposit
liabilities of, one or more savings and loan associations
under certain specified conditions. The Ohio Act provides that such an acquisition of a bank by a non-Ohio
bank holding company is authorized by the laws of the
State of Ohio for purposes of the Douglas Amendment
to the BHC Act and limits such acquisitions to two
out-of-state bank holding companies.
By letters dated May 20 and 22, 1985, the Ohio
Superintendent of Savings and Loan Associations and
the Ohio Superintendent of Banks requested that the
Board approve the application and that the Board act
expeditiously in this matter under the emergency
procedures of the Act. The Ohio supervisory officials
advised the Board that an emergency situation exists
in the State of Ohio with respect to savings and loan
associations insured by O D G F , which has impaired
the credit of citizens of Ohio. They have further stated
that a number of the institutions to be acquired by
Bank, and the group in the aggregate, have no foreseeable ability to open or remain open without the assistance or continuing assistance of Applicant.
The record shows that American, Tri-State, Investor and First State experienced severe financial difficulties during the period following the closing of Home
State Savings Bank. All continue to experience net
deposit outflows. The write-off of the required contributions to O D G F of these institutions would reduce
their net worth below the levels required by all federal
and state regulatory authorities and would not be
sufficient to allow the institutions to operate independently on a full-service basis. Indeed, several of these
institutions would have a negative net worth. Three of
the institutions, Tri-State, Investor, and American,
were permitted to reopen on a full service basis only
after Applicant had executed written agreements for
their acquisition. First State opened on a full service
basis on April 25, 1985, and experienced severe deposit outflows.
In similar fashion, at the time Federated was acquired by Applicant, Federated had not been authorized by the Ohio Superintendent of Savings and Loan
Associations to reopen except for the purpose of
permitting limited withdrawals by its depositors. The
Superintendent permitted Mentor (now Chase Savings) to reopen on a full service basis only after
determining that Mentor should qualify for FSLIC
insurance as a result of a $4.0 million deposit provided
by Applicant to Mentor; Mentor would not have been
permitted to remain open if Applicant's deposit were
withdrawn. Without capital assistance from Applicant,
Mentor and Federated also would not have had an
adequate capital position after the write-off of their
required contributions to ODGF.
In view of these and the other facts of record, the
Board believes that an emergency exists that requires
expeditious action under section 3(b) of the Act and
section 225.14(b)(2) of the Board's Regulation Y
(12 C.F.R. § 225.14(b)(2)). Accordingly, the Board has
determined that it is appropriate in these cases to
shorten the period for interested persons to submit
comments regarding these applications. In this regard,
the Board promptly published notice of the application
in the Federal Register (50 Federal Register 21,507
(1985)) and in newspapers of general circulation in
Cincinnati, Columbus, and Cleveland, providing for a
period of public comment on the application. 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).4
Applicant, with total assets of $86.9 billion, controls
three bank subsidiaries, including The Chase Manhattan Bank, N.A., New York, New York, and is the
second largest commercial banking organization in
New York State. 5 Applicant operates in Ohio a commercial finance subsidiary, Chase Commercial Corporation, and an economic forecasting and data processing subsidiary, Chase Econometrics/Inter Active Data
Corporation. As noted, Chase controls two thrift institutions in Ohio which are to be merged into Bank:
Chase Savings, which controls $107.4 million in assets
and operates in the Cleveland, Ohio banking market
and Federated, which operates in the Cincinnati banking market and controls $53.2 million in assets.
Federated (assets of $53.2 million), American (assets of $54 million) and Tri-State (assets of $45 million)
all compete in the Cincinnati, Ohio banking market.
Investor (assets of $90 million) and First State (assets
of $94 million) compete directly in the Columbus
banking market. In view of the relatively small market
shares of these institutions, and the fact that Chase's
remaining bank subsidiaries operate in separate banking markets, the Board concludes that consummation
of the proposed acquisition would not have a significant adverse effect on existing competition in any
relevant market. In view of the relatively small sizes of
the institutions involved and the number of potential
4. In this regard, one commenter has requested the Board "to
condition the approval to acquire shares of an Ohio commercial bank
by Chase upon the passage by the Ohio legislature or Congress of
interstate banking legislation." The Ohio legislature, however, has
specifically authorized this transaction under the terms and conditions
it deemed appropriate, and is separately considering interstate banking legislation. Accordingly, the Board has determined not to impose
such a condition.
5. All financial data are as of December 31, 1984.
Legal Developments
entrants into the relevant markets, the Board finds that
these acquisitions would not have any significant
adverse effect on potential competition in any relevant
market.
The financial and managerial resources and future
prospects of Applicant and Bank are satisfactory and
consistent with approval of this application. While the
Board would normally consider as an adverse factor
any significant dilution of capital or increase in leverage by a bank holding c o m p a n y in connection with a
proposed acquisition, the Board notes that the proposed acquisitions have a de minimis impact on the
capital and leverage positions of Applicant.
Consummation of Applicant's proposal will provide
adequate capitalization and continuing financial support to the successor to the six thrift institutions
involved in the application. At consummation, Applicant will inject $30 million in new capital into Bank.
Bank thereafter will have an initial level of primary
capital in excess of the minimum standards set forth in
the B o a r d ' s Capital Adequacy Guidelines. This will
ensure that the service provided by the six thrift
institutions to the convenience and needs of their
relevant communities will resume or continue. Accordingly, the Board concludes that convenience and
need factors lend substantial weight to approval of this
application and that approval of the proposed transaction would be in the public interest.
Section 3(d) of the Act prohibits a bank holding
company f r o m acquiring a bank outside of the bank
holding c o m p a n y ' s home state unless the statute laws
of the state where the target bank is located specifically authorize such an acquisition. 6 The recently enacted section 1155.45(1) of Title XI of the Ohio Revised Code provides specific statutory authorization
for C h a s e ' s proposed acquisition of Bank. Accordingly, the instant proposal would not violate the Douglas
Amendment to the B H C Act. 7
Applicant has also applied for approval under section 9 of the Federal Reserve Act, 12 U . S . C . § 321
et seq., and section 208.4 of Regulation H , 12 C . F . R .
§ 208.4, for Bank to b e c o m e a member of the Federal
Reserve System upon consummation of these acquisitions. Bank appears to meet all the criteria for admission of membership, including capital requirements
and considerations related to management character
6. 12 U.S.C. § 1842(d). The home state of the acquiring holding
company is defined for Douglas Amendment purposes as the state in
which the operations of the bank holding company's banking subsidiaries were principally conducted on the later of July 1, 1966, or the
date on which the company became a bank holding company. Id.
7. In this regard, the Board has considered that the Ohio statute
involved in this case is similar in effect to statutes in other states that
contain limited authorizations for acquisitions of depository institutions in those states by out-of-state bank holding companies in
emergency situations. The Board also notes that the statute does not
discriminate against out-of-state bank holding companies on the basis
of location.
635
and quality. Accordingly, B a n k ' s membership application is approved. 8
In connection with B a n k ' s membership application,
Applicant's audits of the institutions to be acquired
have revealed assets which may not be eligible for
ownership by a state m e m b e r b a n k . Applicant has
requested a two-year period to divest any nonconforming assets. In view of the emergency nature of
these acquisitions and the public benefits associated
with this proposal, the Board believes that a two-year
divestiture period is reasonable and appropriate in this
instance. Accordingly, Applicant's request is granted.
On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be c o n s u m m a t e d before the fifth
calendar day following the effective date of this Order,
or later than three m o n t h s 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
N e w York pursuant to delegated authority.
By order of the Board of Governors, effective
June 3, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Gramley, and Seger. Absent and not voting:
Governors Wallich and Rice.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
First Atlanta Corporation
Atlanta, Georgia
Order Approving
Companies
the Merger of Bank
Holding
First Atlanta Corporation, Atlanta, Georgia, a bank
holding company within the meaning of the Bank
Holding Company Act ( " A c t " ) , has applied for the
Board's approval under section 3(a)(5) of the Act
(12 U . S . C . § 1842(a)(5)) to merge with First Gwinnett
Bancshares, Inc., Lawrenceville, Georgia ( " F i r s t
Gwinnett"), and thereby acquire its subsidiary bank,
First National Bank of Gwinnett County.
Notice of the application, affording opportunity for
interested persons to submit c o m m e n t s , has been
given in accordance with section 3(b) of the Act. The
time for filing c o m m e n t s has expired, and the Board
has considered the application and all comments re8. In view of the facts of record and at the request of the Ohio
Superintendent of Banks, the Board has determined that an emergency exists requiring expeditious action on the membership application.
Accordingly, the Board hereby waives the notice and other procedural
requirements for membership under the provisions of 12 C.F.R.
§ 262.3(1).
636
Federal Reserve Bulletin • August 1985
ceived in light of the factors set forth in section 3(c) of
the Act (12 U . S . C . § 1842(c)).
Applicant is the third largest banking organization in
Georgia with three subsidiary banks that control aggregate deposits of approximately $4.0 billion, representing 14.4 percent of the total deposits in commercial banks in the state. 1 First Gwinnett is the 27th
largest banking organization in Georgia, with one
banking subsidiary that controls deposits of $121.8
million, representing 0.4 percent of the total deposits
in commercial banks in the state. U p o n consummation
of the proposed acquisition, Applicant's share of the
total deposits in commercial banks in the state would
increase to 14.8 percent, and Applicant would b e c o m e
the second largest commercial banking organization in
the state. The Board has considered the effect of the
proposal on the structure of banking in Georgia and
has concluded that consummation of this transaction
would not significantly increase the concentration of
banking resources in the state.
Applicant and First Gwinnett compete directly in
only one market, the Atlanta metropolitan banking
market. 2 Applicant is the largest of 24 commercial
banking organizations in the market, controlling 25.2
percent of the total deposits in commercial banks in
the market. First Gwinnett is the eighth largest commercial banking organization in the relevant banking
market, controlling slightly less than 1.0 percent of the
total deposits in commercial banks therein. Upon
consummation of this proposal, Applicant would remain the largest commercial banking organization in
the market, controlling approximately 26.2 percent of
the total deposits in commercial banks in the market.
While consummation of the proposal would eliminate some existing competition in the Atlanta metropolitan banking market, the Board believes that certain factors substantially mitigate the anticompetitive
effects of the proposal. U p o n consummation, Applicant's share of the total deposits in commercial banks
in the market would increase by only 1.0 percentage
point to 26.2 percent, and the Herfindahl-Hirschman
Index ( " H H I " ) would increase by only 49 points to
1839.3 Twenty-three commercial banking alternatives
would remain in the market after consummation of the
transaction.
The Board also has considered the influence of thrift
institutions in evaluating the competitive effects of this
1. Unless otherwise indicated, all banking data are as of June 30,
1984.
2. The Atlanta metropolitan banking market is approximated by
Clayton, Cobb, DeKalb, Douglas, Fulton, Gwinnett, Henry, and
Rockdale Counties, in Georgia.
3. Under the United States Justice Department Merger Guidelines,
a market in which the post-merger HHI is above 1800 is considered
highly concentrated. In such markets, the Department is not likely to
challenge a merger that produces an increase in the HHI of less than
50 points, as in this case.
proposal. 4 In this case, the small increase in concentration in the Atlanta metropolitan banking market is
alleviated by the presence of 16 thrift institutions in the
market, controlling $5.1 billion in deposits, which
represents 33 percent of the total deposits in commercial banks and thrift institutions in the market. The
thrift institutions offer a full range of consumer services and transaction accounts and some are engaged
in commercial lending. Consequently, the Board has
determined that consummation of this proposal would
not have a significantly adverse effect on existing
competition in the Atlanta metropolitan banking market. 5
The financial and managerial resources of Applicant, First Gwinnett, and their subsidiaries are satisfactory and their prospects appear favorable. Thus,
banking factors are consistent with approval of the
application. U p o n consummation of this proposal,
First Gwinnett's customers would have access to
Applicant's larger system of automated teller machines. Consequently, considerations relating to the
convenience and needs of the community to be served
lend weight toward 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, this application is approved for the reasons summarized above. The transaction shall not be c o n s u m m a t e d before the thirtieth
calendar day following the effective date of this Order,
or later than three months after the effective date of
this Order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
Atlanta, acting pursuant to delegated authority.
By order of the Board of Governors, effective
June 27, 1985.
Voting for this action: Vice Chairman Martin and Governors Wallich, Partee, Rice, Gramley, and Seger. Absent and
not voting: Chairman Volcker.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
4. The Board has previously determined that thrift institutions have
become, or at least have the potential to become, major competitors of
commercial banks. E.g., Midlantic Banks, Inc., 71 FEDERAL RESERVE
BULLETIN 458 (1985); NCNB Corporation (Ellis), 70 FEDERAL RESERVE BULLETIN 225 (1984); Comerica (Pontiac State Bank), 69
FEDERAL RESERVE B U L L E T I N 9 1 1 ( 1 9 8 3 ) ; First
Corporation,
Tennessee
National
6 9 FEDERAL RESERVE B U L L E T I N 2 9 8 ( 1 9 8 3 ) .
5. If 50 percent of the deposits of the thrift institutions were taken
into account in computing market shares, Applicant's market share
would be 20.2 percent, First Gwinnett's market share would be 0.5
percent, and the HHI would be 1215. Upon consummation of this
proposal, Applicant's market share would increase to approximately
20.7 percent, and the HHI would increase by only 20 points to 1235, a
level considered only moderately concentrated under the U.S. Department of Justice Merger Guidelines.
Legal Developments
First Commercial Bankshares, Inc.
Arlington, Virginia
Order Denying
Company
Formation
of a Bank
Holding
First Commercial Bankshares, Arlington, Virginia,
has applied for the B o a r d ' s approval under section
3(a)(1) of the Bank Holding Company Act ( " B H C
A c t " ) (12 U . S . C . § 1842(a)(1)) to become a bank holding company through acquisition of the shares of First
Commercial Bank, Arlington, Virginia ( " B a n k " ) .
Notice of the application, affording opportunity for
interested persons to submit comments, has been
given in accordance with section 3(b) of the Act. The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the Act (12 U . S . C . § 1842(c)).
On the basis of the record, the application is denied
for the reasons set forth in the B o a r d ' s Statement,
which will be released at a later date.
By order of the Board of Governors, effective
May 28, 1985.
Voting for this action: Vice Chairman Martin and Governors Wallich, Partee, Gramley, and Seger. Absent and not
voting: Chairman Volcker and Governor Rice.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Statement by Board of Governors of the Federal
Reserve System Regarding the Application of First
Commercial Bankshares, Inc. to Become a Bank
Holding
Company
By Order dated May 28, 1985, the Board denied the
application of First Commercial Bankshares, Arlington, Virginia, under section 3(a)(1) of the Bank Holding Company
Act ( " B H C
Act")
(12 U . S . C .
§ 1862(a)(1)) to b e c o m e a bank holding company by
acquiring the shares of First Commercial Bank, Arlington, Virginia ( " B a n k " ) .
In this Statement, the Board sets forth its reasons
for denying this application.
Applicant, a nonoperating Virginia corporation with
no subsidiaries, was organized for the purpose of
becoming a bank holding c o m p a n y by acquiring Bank,
which holds deposits of $41 million. 1 U p o n consummation of this proposal, Applicant would control the
1. Deposit data are as of March 1, 1985.
637
68th largest commercial bank in Virginia, holding 0.13
percent of deposits in commercial b a n k s in the state.
Bank is the 40th largest of 71 commercial banking
organizations in the Washington, D.C. banking market
and holds 0.21 percent of total deposits in commercial
banks in the market. 2 Applicant's principals are not
affiliated with any other banking organization in the
relevant market, and consummation of the proposed
transaction would not result in any adverse effects
upon competition or increase in the concentration of
banking resources in any relevant area. Accordingly,
the Board concludes that competitive considerations
are consistent with approval.
The B H C Act requires the Board in each case to
consider the financial and managerial resources of the
bank and c o m p a n y involved in the p r o p o s e d transaction. In this regard, the Board has indicated on previous occasions that a holding c o m p a n y 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. Having examined the
financial and managerial factors in light of the record
of this application, the Board concludes that the
record presents adverse considerations that warrant
denial of the proposal.
The operations of Bank are currently under the
direction of Applicant's principals and have been
during the past five years. In recent years B a n k ' s
capital has declined significantly while Applicant's
principals have c o m p e n s a t e d themselves with B a n k ' s
funds in amounts considered to be excessive for a
bank of this size and with these characteristics. It is
the B o a r d ' s policy that bank earnings should be preserved for the bank except for prudent dividend payments, and that remunerations should be based on the
cost or market value of services rendered.
As Applicant has indicated, Bank lends primarily to
business borrowers, which has resulted in relatively
large concentrations of credits with c o m m e n s u r a t e
risk exposure. This indicates the need for higher levels
of capital. Partly because of the high compensation
levels to Applicant's principals, h o w e v e r , Bank lacks
sufficient earnings to maintain the higher level of
capital that the Board would deem adequate.
Applicant has stated that it plans to b o r r o w f u n d s to
provide additional capital for Bank. Given the past
record of compensation paid to B a n k ' s principals, a
portion of these f u n d s could be used to support
excessive levels of compensation in the future. Moreover, B a n k ' s past growth and earnings do not provide
assurance that Applicant will be able to service the
debt it intends in connection with this transaction
2. The Washington, D.C. banking market is approximated by the
Washington, D.C. R.M.A.
638
Federal Reserve Bulletin • August 1985
without adversely affecting its capital position. Accordingly, in the Board's view, any improvement in
Bank's capital would be temporary given Bank's present expenses. Therefore, the Board concludes at this
time that considerations relating to financial and managerial resources would not be consistent with approval
of this application.
Applicant has proposed no new services for Bank
upon consummation of this proposal. Considerations
relating to the convenience and needs of the community to be served thus are consistent with but lend no
weight toward approval of this application.
On the basis of the facts of record of this application, the Board concludes that the banking considerations involved in this proposal are adverse and are
not outweighed by any relevant competitive or convenience and needs considerations. Accordingly, it is the
Board's judgment that approval of the application
would not be in the public interest, and the application
should be and hereby is denied for the reasons summarized above.
June 6, 1985
JAMES M C A F E E
[SEAL]
Associate
Secretary of the Board
First Jersey National Corporation
Jersey City, New Jersey
Order Approving Acquisition
of Shares of a Bank
First Jersey National Corporation, Jersey City, New
Jersey, 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(a)(3) of the Act (12 U.S.C.
§ 1842(a)(3)) to acquire 8.8 percent of the voting shares
of The Broad Street National Bank of Trenton, Trenton, New Jersey ( " B a n k " ) .
Notice of the application, affording an opportunity
for interested persons to submit comments, has been
given in accordance with section 3(b) of the Act. The
time for filing comments has expired, and the Board
has considered the application and all comments received, including those of Bank, in light of the factors
set forth in section 3(c) of the Act (12 U.S.C.
§ 1842(c)).1
1. The Board received approximately 200 comments from businesses and individuals in the community alleging that Applicant's
acquisition of shares of Bank would result in a decline in service for
Bank's customers and that Bank would be less receptive to the
convenience and needs of the community. The Board has reviewed
Applicant's operations and its record in serving the needs of the
Applicant, the 5th largest banking organization in
New Jersey, controls 4 banks with total deposits of
approximately $1.7 billion, representing approximately 4.5 percent of the total deposits in commercial
banks in the state. 2 Bank is the 27th largest commercial banking organization in the state, with total deposits of $180 million, representing approximately 0.5
percent of the total deposits in commercial banks in
the state. Upon acquisition of Bank, Applicant's share
of deposits in commercial banks in the state would
increase to 5.0 percent. Accordingly, consummation
of this proposal would not result in a significant
increase in the concentration of banking resources in
New Jersey.
Bank operates in the Trenton market, where Applicant does not operate. 3 Because Applicant and Bank
do not operate in the same market, consummation of
this proposal would not have a significant adverse
effect upon existing competition in any relevant market. 4
The Board has also examined the effect of the
proposed acquisition upon probable future competition in the relevant geographic markets in light of the
Board's proposed Market Extension Guidelines. 5 After consideration of these factors in light of the specific
facts of this case, the Board has concluded that
consummation of this proposal would not have any
significant adverse effects on probable future competition in any relevant market. In the Trenton market, the
four largest commercial banking organizations control
47.6 percent of the deposits in commercial banks in the
market, and thus the market is not considered highly
concentrated under the Board's guidelines.
The financial and managerial resources and future
prospects of Applicant and Bank are considered satis-
communities where it currently operates. Because Applicant's record
of meeting the needs of the communities it serves is satisfactory, and
the protests do not provide any evidence that Applicant will not
continue to meet the needs of the communities, the Board concludes
that these allegations do not warrant denial of this application.
2. Deposit data are as of June 30, 1983.
3. The Trenton banking market is approximated by all of Mercer
County, and portions of Burlington County, Hunterdon County,
Middlesex County, Monmouth County, and Somerset County, all in
New Jersey; and portions of Bucks County in Pennsylvania.
4. One of Applicant's subsidiaries has applied to purchase the
assets and assume the liabilities of a branch of a bank that operates in
the Trenton market. Bank controls 6.1 percent of the deposits in
commercial banks in the market and the deposits of the branch
represent 0.1 percent of the market's deposits. If it is assumed that
Applicant will acquire Bank in the future, Applicant's resulting market
share would be 6.2 percent. The acquisition would not result in a
substantial lessening of competition in the Trenton market.
5. "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 (1982). While the proposed policy statement has not
been adopted by the Board, the Board is using the policy Guidelines as
part of its analysis of the effect of a proposal on probable future
competition.
Legal Developments
factory. Accordingly, the Board concludes that banking factors are consistent with approval of the application. 6
In reaching this conclusion, the Board has considered c o m m e n t s concerning this application f r o m Bank,
which has protested the application on the grounds
that managerial factors are substantially adverse because of Applicant's alleged violation of the control
provisions of the B o a r d ' s Regulation Y in its attempt
to acquire Bank. Bank argues that the option agreement for the 8.8 percent of B a n k ' s shares triggers the
rebuttable presumption of control set forth in the
B o a r d ' s Regulation Y 7 because the option was purchased on January 31, 1985, and expires on D e c e m b e r
31, 1985. The Board concludes that Applicant filed for
the B o a r d ' s approval on a timely basis and that the
duration of the option is not unreasonable. 8 Bank also
argues that the price paid for this option is likely to
differ substantially f r o m the price paid for additional
shares of Bank if Bank is eventually merged into a
subsidiary of Applicant. T h e Board, however, may not
deny an application solely upon the inequality of the
offers made to minority shareholders. 9 Bank has raised
a number of other issues, which the Board finds do not
reflect adversely on the management of Applicant. 1 0
On the basis of all the facts of record, the Board
does not believe that B a n k ' s c o m m e n t s present sufficient evidence of any adverse effects to warrant denial
of this application. Considerations relating to the convenience and needs of the community to be served
also are consistent with approval.
Based on the foregoing and other facts of record, the
Board has determined that the proposed acquisition is
in the public interest and that the application should be
approved. Accordingly, the application is approved
for the reasons summarized above. The transaction
shall not be c o n s u m m a t e d 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
6. The Board has previously indicated that the acquisition of less
than a 25 percent interest in the voting shares of a bank is not a normal
acquisition for a bank holding company. Midlantic Banks, Inc., 70
FEDERAL RESERVE BULLETIN 7 7 6 ( 1 9 8 4 ) . A l t h o u g h t h i s a c q u i s i t i o n is
less than an absolute controlling interest in Bank, Applicant has
informed the Board of its plans to acquire a controlling interest in
Bank in the near future.
7. 12 C.F.R. § 225.31(d)(l)(ii)(c).
8. See,
Suburban
Bancorp,
Inc.,
71 FEDERAL RESERVE BULLETIN
581.
9. Western Bancshares, Inc. v. Board of Governors, 480 F.2d 749
(10th Cir. 1973).
10. Bank alleges that the seller of the option has violated federal
securities laws by her purchase of the shares that are subject to the
option. Applicant was not involved in the transactions leading to
seller's purchase of the shares, and thus the seller's actions do not
reflect on Applicant's managerial resources.
639
by the Board or by the Federal R e s e r v e Bank of N e w
York, pursuant to delegated authority.
By order of the Board of G o v e r n o r s , effective
June 17, 1985.
Voting for this action: Chairman Volcker and Governors
Wallich, Partee, Rice, Gramley, and Seger. Absent and not
voting: Governor Martin.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
First National Vermont Corporation
Springfield, Vermont
Order Approving
the Acquisition
of a Bank
First National Vermont Corporation, Springfield, Vermont, a bank holding c o m p a n y within the meaning of
the Bank Holding C o m p a n y Act of 1956, as amended
( " A c t " ) , has applied for the B o a r d ' s approval under
section 3(a)(3) of the Act (12 U . S . C . § 1842(a)(3)) to
acquire the voting shares of The Caledonia National
Bank of Danville, Danville, Vermont ( " B a n k " ) .
Notice of the application, affording an opportunity
for interested p e r s o n s to submit c o m m e n t s , has been
given in accordance with section 3(b) of the Act. The
time for filing c o m m e n t s 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 is the eighth largest commercial banking
organization in Vermont with total deposits of approximately $108.2 million, representing 3.3 percent of the
total deposits in commercial banks in the state. 1 Bank,
with total assets of $44.0 million, is the sixteenth
largest commercial banking organization in Vermont,
and holds total deposits of $40.7 million, representing
1.25 percent of the total deposits in commercial banks
in the state. U p o n consummation of the proposed
acquisition, assuming no divestiture by Applicant,
Applicant would remain the eighth largest banking
organization in V e r m o n t , and would hold $148.9 million in deposits, representing 4.6 percent of the total
deposits in commercial banks in the state. Accordingly, the Board concludes that consummation of this
acquisition would not have any significantly adverse
effects on the concentration of commercial banking
resources in Vermont.
Applicant is presently the smallest of five commercial banking organizations in the St. Johnsbury bank-
1. Unless otherwise indicated, banking data are as of December 31,
1984.
640
Federal Reserve Bulletin • August 1985
ing market. 2 Applicant's subsidiary bank, the First
National Bank of Vermont, Springfield, Vermont,
maintains branch facilities in St. Johnsbury, which
control 8.3 percent of the total deposits in commercial
banks in the market. 3 Bank is the third largest commercial banking organization in the market and controls 23.9 percent of the total deposits in commercial
banks in the market. After consummation of the
proposal, absent any divestiture, Applicant would
become the largest commercial banking organization
in the market, and would control 32.1 percent of the
market's total deposits in commercial banks. The
Herfindahl-Hirschman Index ( " H H I " ) in the market
would increase by 395 points to 2714, and the market
would be considered highly concentrated. 4 In view of
these and other facts of record, 5 the Board concludes
that, in the absence of the divestiture proposed by
Applicant and discussed below, consummation of the
proposed acquisition would have significantly adverse
effects on existing competition in the St. Johnsbury
banking market.
In connection with this proposal, Applicant has
committed to divest its St. Johnsbury branch office
facilities and its deposit accounts associated with
those facilities to a third financial institution not presently represented in the market. 6 The divestiture
2. The St. Johnsbury banking market is approximated by all of
Caledonia County, Vermont, less the towns of Groton, Hardwick,
Ryegate, Stannard, and Walden, together with the Essex County
towns of Concord, East Haven, Granby, and Victory.
3. Market data are as of June 30, 1984.
4. Under the revised Department of Justice Merger Guidelines (49
Federal Register 26,823 (June 29, 1984)), any market in which the
post-merger HHI is above 1800 is considered highly concentrated. In
such markets, the Department is likely to challenge any merger that
produces an increase in the HHI of more than 50 points unless other
factors indicate that the merger will not substantially lessen competition. If, as here, the increase in the HHI exceeds 100 points and the
HHI substantially exceeds 1800, the Department has indicated that
only in extraordinary cases will other factors establish that the merger
is not likely substantially to lessen competition. However, the Department has submitted no formal objection to the instant proposal.
5. In this connection, the Board has considered as a mitigating
factor in this case the presence in the market of a single thrift
i n s i t i t u t i o n . CB & T Banc shares,
TIN 337-338; First Bancorp
Inc.,
71 FEDERAL RESERVE B U L L E -
of New Hampshire,
Inc., 68 FEDERAL
RESERVE B U L L E T I N 7 6 9 , 7 7 0 ( 1 9 8 2 ) . T h e t h r i f t , w h i c h is t h e l a r g e s t
depository institution in the market, engages to some extent in
commercial lending and accepts commercial checking accounts. If 50
percent of the deposits held by this thrift were included in the
calculation of market concentration, Applicant's existing share of
market deposits would be 6.3 percent; Bank's share of market
deposits would be 18.3 percent; and their combined share of market
deposits as a result of this proposal would be 24.6 percent. The
market's HHI would increase 230 points as a result of the acquisition
to 2137, and the market would accordingly be considered highly
concentrated.
6. Pursuant to the Agreement and Plan of Acquisition and Assumption dated February 11, 1985, included in the application, The
Merchants Bank, Burlington, Vermont ("Merchants"), will acquire
all of Applicant's land, office facilities, furniture, fixtures, equipment,
would be completed before or contemporaneously
with Applicant's consummation of the proposed acquisition of Bank. 7 Applicant's divestiture commitment
and the contract of sale included with the application
do not, however, cover any portion of Applicant's
loan portfolio and Applicant proposes to retain the
loans allocable to its St. Johnsbury branch (approximately $8.4 million) after consummation of the acquisition.
The Board normally will not consider a divestiture
involving the sale of market deposits and branch
facilities " c o m p l e t e " for purposes of analyzing the
effects of a proposed acquisition on competition unless
the divestiture also provides for the prior or contemporaneous sale of all or substantially all of the commercial loans and other assets that are properly allocable
to the office or facility being divested. 8 The Board
expects that future bank holding company applicants
will arrange their proposals accordingly. However, the
Board recognizes that special circumstances in this
case justify an exception to this policy. In particular,
the Board notes that as a result of the executed
contract of sale included with this application, a
strong, aggressive competitor would enter the St.
Johnsbury banking market simultaneously with consummation of the proposed transaction. In addition,
Applicant in this case has documented its persistent
and good faith efforts to divest the loans in question. 9
The Board notes that a provision of the contract of sale
prohibits Applicant for six months from soliciting
customers of the divested branch to shift their deposit
accounts or other banking business to the Applicant;
that borrowers having loans at the branch may, under
and deposit accounts allocable to Applicant's St. Johnsbury branch
offices. Merchants, with deposits of $262 million, or 8.8 percent of the
statewide total, was, as of June 30, 1984, the fifth largest commercial
banking organization in Vermont, and is reportedly one of the more
aggressive in its marketing efforts.
7. In this respect, Applicant's proposed divestiture conforms to the
requirement announced in Barnett Banks of Florida, Inc., 68 FEDERAL RESERVE BULLETIN 190 (1982); see also InterFirst Corporation, 68
FEDERAL RESERVE B U L L E T I N 2 4 3 , 2 4 4 ( 1 9 8 2 ) .
8. There have been instances where portions of an applicant's
allocable loan portfolio, such as residential real estate mortgages and
credit card receivables, have not been sold. However, in this case, the
applicant proposes to retain all of the loans originated at the divested
branch office. Normally, this arrangement would not be regarded a
"complete" divestiture under the Board's policy announced in Barnett Banks of Florida, Inc., supra.
9. Applicant has submitted correspondence from seven Vermont
banking institutions expressing their lack of interest in purchasing
Applicant's St. Johnsbury branch. In addition, Applicant has indicated that the loans, totalling approximately $8.4 million, include approximately $800,000 in loans that are involved in litigation or foreclosure,
and $3.7 million in real estate loans at rates of interest that are
substantially below market rates. Substantially all of the remainder of
the loans can be characterized as short term. According to Applicant,
the purchaser of Applicant's St. Johnsbury branch was simply not
interested in purchasing the loans originated at that facility.
Legal Developments
the contract of sale, continue to make loan p a y m e n t s
at the branch following its divestiture by Applicant;
and that the branch manager and other branch personnel will b e transferred f r o m the employ of Applicant to
the employ of the acquiring bank contemporaneously
with the divestiture. The Board also notes that the
offices of Bank to be acquired by Applicant pursuant
to this proposal are in a separate town seven miles
away f r o m the branch to be divested. In light of these
facts, and the additional fact that no compensating
(deposit) balance requirements are associated with the
loans to be retained by Applicant, the Board concludes
that the branch divestiture proposed in this case will
be effective and complete, notwithstanding Applic a n t ' s retention of loans allocable to the divested
facility.
The Board accordingly concludes that the application should be approved on the condition that Applicant divest its St. Johnsbury branch facilities as provided in the contract of sale included in the application
prior to or contemporaneously with Applicant's consummation of its acquisition of Bank. Based upon this
condition, the B o a r d ' s judgment is that consummation
of the acquisition and divestiture plan described in the
application would not have any significantly adverse
effects upon existing or potential competition, or on
the concentration of banking resources in any relevant
market.
The financial and managerial resources of Applicant
and Bank are considered satisfactory and their prospects appear favorable. The Board has also determined that considerations relating to the convenience
and needs of the community to be served are consistent with approval of the application. Accordingly, it is
the B o a r d ' s j u d g m e n t that the proposed transaction
would be in the public interest and that the application
should be a p p r o v e d .
Based on the foregoing and other facts of record, the
Board has determined that the application under section 3(a)(3) should be and hereby is approved for the
reasons set forth above. The transaction shall not be
consummated before the thirtieth calendar day following the effective date of this Order or later than three
months after the effective date of this Order, unless
such period is extended by the Board or by the Federal
Reserve Bank of Boston, acting pursuant to delegated
authority.
By order of the Board of Governors, effective
June 3, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Gramley, and Seger. Absent and not voting:
Governors Wallich and Rice.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
641
Louisiana Bancshares, Inc.
Baton Rouge, Louisiana
Order Approving
Companies
Merger of Bank
Holding
Louisiana Bancshares, Inc., Baton Rouge, Louisiana,
a bank holding c o m p a n y within the meaning of the
Bank Holding C o m p a n y Act of 1956, as amended
(12 U . S . C . § 1841, et seq.) ( " A c t " ) , has applied for
the B o a r d ' s approval under section 3(a)(5) of the Act
(12 U . S . C . § 1842(a)(5)) to acquire Guaranty Bancshares, Inc., L a f a y e t t e , Louisiana ( " G u a r a n t y " ) and
indirectly to acquire Guaranty Bank, Lafayette, Louisiana.
Notice of this application, affording an opportunity
for interested p e r s o n s to submit c o m m e n t s , has been
given in accordance with section 3 of the Act. The time
for filing c o m m e n t s 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, the largest commercial banking organization in Louisiana, controls total domestic deposits of
$2.4 billion, representing 8.6 percent of the total
deposits in commercial banks in the state. 1 Guaranty,
the seventh largest commercial banking organization
in Louisiana, controls $654.9 million in domestic deposits, representing 2.4 percent of the total deposits in
commercial b a n k s in the state. U p o n consummation of
this transaction, Applicant's share of the total deposits
in commercial b a n k s in Louisiana would increase to
11.0 percent.
The Board has carefully considered the effects of the
proposal on statewide banking structure and upon
competition in the relevant markets. T h e proposal
involves a combination of sizeable commercial banking organizations that are among the leading banking
organizations in the state. H o w e v e r , Louisiana is one
of the least concentrated states in terms of banking
resources, 2 with the f o u r largest commercial banking
organizations in the state controlling 29.4 percent of
the total deposits in commercial banks in the state.
Upon consummation, the four-firm concentration ratio
1. Banking data are as of June 30, 1984 and market data are as of
June 30, 1983, unless otherwise noted.
2. Louisiana, formerly a unit-banking state, recently passed legislation that permits multibank holding companies in the state. 1984
Louisiana Acts No. 50. The new law permits a bank holding company
to acquire a bank outside of the holding company's parish if the bank
has been in existence for at least five years.
642
Federal Reserve Bulletin • August 1985
would increase to 31.7 percent and the state would
remain unconcentrated. 3
Guaranty and Applicant do not operate subsidiary
banks in the same markets. Therefore, consummation
of the proposal would not eliminate existing competition in any relevant geographic market.
The Board has considered the effects of this proposal on probable f u t u r e competition and also examined
the proposal in light of its proposed guidelines for
assessing the competitive effects of market extension
mergers and acquisitions 4 in the markets in which
Applicant or G u a r a n t y , but not both, compete. 5 In
view of the n u m b e r of probable future entrants into
each of these markets, the Board concludes that
consummation of this proposal would not have any
significant adverse effects on probable future competition in any relevant market.
The financial and managerial resources of Applicant
and Guaranty are regarded as satisfactory and consistent with approval of the proposal. Considerations
relating to the convenience and needs of the community to be served are also consistent with approval of the
proposal.
Based on the foregoing and other facts of record, the
Board has determined that the application under section 3(a)(5) should be, and hereby is, approved for the
reasons set forth above. The transaction shall not be
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
the Federal Reserve Bank of Atlanta, acting pursuant
to delegated authority.
By order of the Board of Governors, effective
June 27, 1985.
Voting for this action: Vice Chairman Martin and Governors Wallich, Partee, Rice, Gramley, and Seger. Absent and
not voting: Chairman Volcker.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
3. Statewide concentration data take into account the pending
merger between First Commerce Corporation and First Lafayette
Bancorp, Inc., approved by the Board on May 20, 1985. First
Commerce
Corporation,
71 F E D E R A L RESERVE B U L L E T I N 5 8 6 ( 1 9 8 5 ) .
4. "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 (1982). While the proposed policy statement has not
been approved by the Board, the Board is using the policy guidelines
as part of its analysis of the effect of a proposal on probable future
competition.
5. These banking markets are the Lafayette, Baton Rouge, Monroe, and Shreveport markets. In addition, Applicant has received
approval to acquire the 3rd largest bank in Iberia Parish and has an
application pending to acquire the 2nd largest bank in La Foruche
Parish.
MCorp
Dallas, Texas
MCorp Financial, Inc.
Wilmington, Delaware
Order Approving
Acquisition
of a Bank
MCorp, Dallas, Texas, and its wholly owned subsidiary, M C o r p Financial, Inc., Wilmington, Delaware,
both bank holding companies within the meaning of
the Bank Holding C o m p a n y Act ( " A c t " ) , have applied
for the B o a r d ' s approval under section 3(a)(3) of the
Act (12 U . S . C . § 1842(a)(3)) to acquire 100 percent of
the voting shares of M B a n k U S A , Wilmington, Delaware ( " B a n k " ) , a proposed new b a n k .
Notice of the application, affording interested persons an opportunity to submit c o m m e n t s , has been
given in accordance with section 3(b) of the Act. The
time for filing c o m m e n t s 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 consolidated assets of $20.7
billion, is the 22nd largest commercial banking organization in the nation. It presently operates 67 banking
subsidiaries in Texas and is the largest commercial
banking organization in the state with total domestic
deposits of $16.6 billion. 1 Applicant also engages
through subsidiaries in a variety of nonbanking activities.
Bank is a newly chartered state bank formed to
engage primarily in c o n s u m e r lending through its credit card program. Upon consummation of this proposal,
Applicant would transfer its existing credit card operations, now conducted through offices in Texas, to
Bank. Section 3(d) of the Bank Holding C o m p a n y Act
(12 U . S . C . § 1842(d)) prohibits the Board f r o m approving any application by a bank holding c o m p a n y to
acquire any bank located outside the state in which the
operations of the bank holding c o m p a n y ' s banking
subsidiaries are principally conducted unless the acquisition is "specifically authorized by the statute laws
of the state in which such bank is located, by language
to that effect and not merely by implication." On
February 19, 1981, and on August 13, 1984, the State
of Delaware amended its banking laws to permit an
out-of-state bank holding c o m p a n y to acquire not
more than two de novo banks that will be " o p e r a t e d in
a manner and at a location that is not likely to attract
customers f r o m the general public in [Delaware] to the
1. Banking data are as of December 31, 1984.
Legal Developments
substantial detriment of existing banking institutions
located in this s t a t e . " 2
The proposed acquisition under the Delaware law is
subject to approval by the State Bank Commissioner
w h o , in acting on the application, must consider the
financial and managerial resources of the out-of-state
bank holding company or its subsidiary, the financial
history and future prospects of such c o m p a n y , whether the acquisition may result in undue concentration of
resources or substantial lessening of competition in
Delaware, and the convenience and needs of the
public in Delaware. On March 7, 1985, the State
Banking Commissioner of Delaware preliminarily approved Applicant's formation and acquisition of Bank.
Based on the foregoing, the Board has determined, as
required by section 3(d) of the Act, that the proposed
acquisition conforms to Delaware law and is specifically authorized by the statute laws of Delaware.
U n d e r the limitations imposed by Delaware law on
B a n k ' s operations, it is not likely that Bank will be a
significant competitor in the Delaware-New JerseyMaryland P M S A banking market. 3 The Board notes
that Bank will engage primarily in consumer lending
through its credit card operations. Bank will continue
to provide c o n s u m e r credit card services in Texas and
intends in the near f u t u r e to offer such credit card
services in Oklahoma, Arkansas, Louisiana, and N e w
Mexico. The Board notes that this proposal represents
a reorganization of Applicant's existing credit card
operations. H o w e v e r , Bank will provide additional
consumer credit card services on a de novo basis.
Accordingly, the Board concludes that the proposal
will not have adverse effects on competition in any
relevant area, and that the overall competitive effects
of the proposal are consistent with approval of the
application.
In evaluating this application, the Board has considered the financial and managerial resources of Applicant and the effect of this proposal on these resources.
In its assessment of Applicant's capital adequacy, the
Board notes that Applicant's existing primary and
total capital ratios are above the minimum levels
specified for bank holding companies under the
B o a r d ' s guidelines without undue reliance on goodwill. Also, the Board has viewed the proposed acquisition in the context of a relocation of existing activities
643
that will provide Applicant with increased income
opportunities and will have minimal effect on Applic a n t ' s primary and total capital ratios. In the context
of this application, the Board concludes that financial
and managerial considerations are consistent with
approval of the application.
U p o n consummation of this proposal, Applicant
plans to offer B a n k ' s customers new products and
services not currently available to them. Such services
include a premium service credit card, travel insurance, and credit card registration. Accordingly, the
Board concludes that factors relating to the convenience and needs of the community to be served are
consistent with approval of the application.
While this application is being a p p r o v e d , the Board
has previously expressed its concern about the proliferation of statutes of this type which permit the entry
of out-of-state bank holding companies in order to shift
jobs and revenues f r o m other states, while limiting the
in-state activities of out-of-state owned banks so as to
avoid competition with in-state banking organizations. 4 These statutes do not appear to be based on
appropriate public policy considerations for assuring a
stable and sound banking system locally and nationwide, and the end result of their adoption by other
states can only be a serious impairment of banking
standards and no net gains in j o b s or revenues because
of the proliferation.
Based on the foregoing and other facts of record, the
Board has determined that approval of the application
would be consistent with the public interest and that
the application should be and hereby is approved. The
transaction shall not be c o n s u m m a t e d before the thirtieth calendar day following the effective date of this
Order, or later than three months after the effective
date of this Order, and Bank shall be opened for
business not later than six months after the effective
date of this Order. The latter t w o periods may be
extended for good cause by the Board or by the
Federal Reserve Bank of Dallas, acting pursuant to
delegated authority.
By order of the Board of Governors, effective
June 25, 1985.
Voting for this action: Vice Chairman Martin and Governors Wallich, Rice, and Gramley. Absent and not voting:
Chairman Volcker and Governors Partee and Seger.
JAMES M C A F E E
[SEAL]
2. Del. Code Ann. tit. 5, § 803 (Supp. 1984). The law provides,
however, that each such bank may be operated to attract and retain
customers with whom that bank, the out-of-state holding company, or
the holding company's banking and nonbanking subsidiaries have or
have had business relations.
3. The Delaware-New Jersey-Maryland PMSA banking market is
approximated by Cecil County, Maryland, Salem County, New Jersey, and New Castle County, Delaware.
4.
See,
Associate
Citicorp,
Secretary
of the Board
7 1 F E D E R A L RESERVE B U L L E T I N 101 ( 1 9 8 5 ) .
644
Federal Reserve Bulletin • August 1985
Midwest Bancshares, Inc.
Poplar Bluff, Missouri
Order Approving Acquisition of a Bank and Merger
with a Bank Holding Company
Midwest Bancshares, Inc. ("Midwest"), Poplar Bluff,
Missouri, 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 voting
shares of Bank of Piedmont, Piedmont, Missouri. In a
related application, Midwest has applied under section
3(a)(5) of the Act, 12 U.S.C. § 1842(a)(5), to merge
with Chaffee Bancorporation ("Chaffee"), Chaffee,
Missouri, a bank holding company by virtue of its
control of Bank of Chaffee ("Chaffee Bank"), Chaffee,
Missouri.
Notice of the applications, affording an opportunity
for interested persons to submit comments, has been
given in accordance with section 3(b) of the Act. The
time for filing comments has expired, and the Board
has considered the 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).
Applicant has one subsidiary bank, First State Bank
of Dexter ("Dexter Bank"), Dexter, Missouri. Dexter
Bank, Bank of Piedmont, and Chaffee Bank are among
the smaller banks in Missouri, and control total deposits of $22.5, $21.0, and $13.7 million, respectively. 1
The deposits controlled by each of these institutions
represent less than 0.1 percent of the deposits in
commercial banks in the state. Upon consummation of
this proposal, Applicant would remain one of the
smaller commercial banking organizations in Missouri,
and would control approximately 0.2 percent of the
deposits in the state. Accordingly, the Board concludes that consummation of this proposal would have
no significant effect upon the concentration of banking
resources in Missouri.
Dexter Bank, Bank of Piedmont, and Chaffee Bank
do not compete in the same banking market. 2 Accordingly, the Board concludes that consummation of this
proposal would not have a significant adverse effect
upon existing competition in any relevant market.
1. Banking data are as of September 30, 1984.
2. Dexter Bank, Bank of Piedmont, and Chaffee Bank operate in
the Dexter, Wayne County, and Cape Girardeau markets, respectively. The Dexter market is approximated by the portion of Stoddard
County, Missouri, that lies north of highways D and H. The Wayne
County market is approximated by Wayne County, Missouri. The
Cape Girardeau market is approximated by Cape Girardeau County,
and the northern portion of Scott County, both in Missouri.
The Board has considered the effects of this proposal upon potential competition in the respective markets where Chaffee Bank and Bank of Piedmont presently operate but Applicant does not. The Board has
also considered the effects of this proposal in light of
its proposed guidelines for assessing the competitive
effects of market extension mergers and acquisitions. 3
With respect to the Wayne County market, Applicant
is not considered a probable future entrant and that
market is not considered attractive for entry. With
respect to the Cape Girardeau market, that market is
not highly concentrated. Accordingly, neither of these
markets would require extensive analysis under the
Board's proposed guidelines, and the Board concludes
that consummation of this proposal would not have
any significant adverse effects on probable future
competition in any relevant market.
Where principals of an applicant are engaged in
operating a chain of banking organizations, in addition
to analyzing the proposal before it, the Board also
considers the entire chain and analyzes the financial
resources and future prospects of the chain in light of
the Board's Capital Adequacy Guidelines. 4 Based on
the facts of record, the Board concludes that the
financial and managerial resources and future prospects of Applicant, Dexter Bank, Bank of Piedmont,
Chaffee, Chaffee Bank, and the other banks in the
chain are consistent with approval of these applications, particularly in light of a capital commitment
made in connection with these applications. Although
the Board previously denied an application by Applicant to acquire Bank of Piedmont, 5 the present proposal is strengthened by the proposed merger of
Applicant and Chaffee. Considerations relating to the
convenience and needs of the communities to be
served also are consistent with approval.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be
and hereby are approved. The transaction shall not be
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
3. "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 (1982). While the proposed policy statement has not
been approved by the Board, the Board is using the policy guidelines
as part of its analysis of the effect of a proposal on probable future
competition.
4. E.g., Fourth National Corporation, 70 FEDERAL RESERVE BULLETIN 7 3 0 ( 1 9 8 4 ) ; Unicorp
Bancshares,
B U L L E T I N 8 0 8 ( 1 9 8 3 ) ; a n d First
Carmen
Inc.,
6 9 FEDERAL RESERVE
Bancshares,
Inc.,
6 9 FEDER-
AL RESERVE B U L L E T I N 8 0 1 ( 1 9 8 3 ) .
5 . Midwest
(1985).
Bancshares,
Inc.,
7 1 F E D E R A L RESERVE B U L L E T I N 1 0 3
Legal Developments
by the Federal Reserve Bank of St. Louis pursuant to
delegated authority.
By order of the Board of Governors, effective
June 18, 1985.
Voting for this action: Chairman Volcker and Governors
Wallich, Partee, Rice, Gramley, and Seger. Absent and not
voting: Governor Martin.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Northwestco, Inc.
Northbrook, Illinois
Order Approving
Companies
Acquisition
of Bank
Holding
N o r t h w e s t c o , Inc., N o r t h b r o o k , Illinois, a bank holding company within the meaning of the Bank Holding
Company Act ( " t h e B H C A c t " ) (12 U . S . C . § 1841
et seq.), has applied for the B o a r d ' s approval under
section 3(a)(3) of the Act (12 U . S . C . § 1842(a)(3)) to
acquire all of the voting shares and 100 percent of the
nonvoting Class A preferred shares of Lake View
Bancorp, Inc. ( " L a k e V i e w " ) , N o r t h b r o o k , Illinois,
and 100 percent of the voting shares and 100 percent of
nonvoting Class A and Class B preferred shares of
N o r t h b r o o k Bancorp, Inc. ( " N o r t h b r o o k " ) , Northbrook, Illinois. Applicant would thereby acquire control of L a k e View Trust and Savings Bank, Chicago,
Illinois, and N o r t h b r o o k Trust & Savings Bank,
N o r t h b r o o k , Illinois.
Notice of this application, affording an 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 of the
B H C 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 B H C Act (12 U . S . C .
§ 1842(c)).
Applicant is a one-bank holding c o m p a n y by virtue
of its control of N o r t h w e s t National Bank of Chicago,
Chicago, Illinois. Applicant's principals control L a k e
View and N o r t h b r o o k and this proposal represents the
reorganization of control of these three banking organizations into a single multibank holding company.
Applicant, with deposits of $782 million, 1 is the eighth
1. All banking data are as of June 30, 1984, and the deposits of
Applicant include the deposits held by Pioneer Bank and Trust
Company, Chicago, Illinois, which is also owned by Applicant's
principals.
645
largest commercial banking organization in the state,
controlling 0.8 percent of the total deposits in commercial banking organizations in the state. L a k e View
controls deposits of $516 million and N o r t h b r o o k
controls deposits of $133.5 million. U p o n consummation of this proposal, Applicant would b e c o m e the
sixth largest commercial banking organization in the
state, controlling deposits of $1.4 billion, representing
1.5 percent of total deposits in commercial banking
organizations in the state. Consummation of the transaction would not have any significant adverse effects
upon the concentration of banking resources in the
state.
Applicant is the seventh largest banking organization in the Chicago banking market, 2 controlling 1.2
percent of the total deposits in commercial banks in
the market. L a k e View and N o r t h b r o o k control respectively 0.8 and 0.2 percent of total deposits in
commercial banks in the market. U p o n consummation
of this proposal, Applicant would b e c o m e the fifth
largest banking organization in the banking market,
controlling 2.2 percent of total deposits in commercial
banks in the market.
In analyzing the competitive effects of an application to reorganize ownership of banking organizations
under c o m m o n control, the Board considers the competitive effects of the transaction whereby c o m m o n
ownership was established. Applicant's principal controls another bank located in the Chicago banking
market, Pioneer Bank and Trust, Chicago, Illinois. In
its Order approving the application of L a k e View to
become a bank holding c o m p a n y , the Board considered the competitive effect of the affiliation of these
banks and concluded that given the size of the banking
organizations and the structure of the Chicago banking
market, the combination of these banking organizations would have no significant adverse effects upon
competition within that market. 3 Accordingly, the
Board concludes that competitive considerations are
consistent with approval of this proposal.
The financial and managerial resources and future
prospects of Applicant, its banking subsidiary, the
bank holding companies to be acquired and their
affiliates are considered consistent with approval.
While Applicant proposes to incur debt in connection
with its proposal, it appears that Applicant will be able
to service its debt while maintaining the capital level
required under the B o a r d ' s guidelines. Considerations
relating to the convenience and needs of the communities to be served are also consistent with approval.
2. The Chicago banking market consists of Cook, Lake, and
DuPage Counties, all in Illinois.
3. 6 3 FEDERAL RESERVE B U L L E T I N 1 0 1 7 ( 1 9 7 7 ) .
646
Federal Reserve Bulletin • August 1985
Based on the foregoing and other facts of record, the
Board has determined that the application under section 3(a)(3) should be and hereby is, approved. The
transaction shall not be c o n s u m m a t e d 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 Chicago, acting pursuant to delegated authority.
By order of the Board of Governors, effective
June 20, 1985.
Voting for this action: Governors Partee, Rice, Gramley,
and Seger. Absent and not voting: Chairman Volcker and
Governors Martin and Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Third National Corporation
Nashville, Tennessee
Order Approving
Companies
Merger of Bank
Holding
Third National Corporation, Nashville, Tennessee, 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 B o a r d ' s approval under
section 3(a)(5) of the Act (12 U . S . C . § 1842(a)(5)) to
merge with Mid-South Bancorp, Inc., M u r f r e e s b o r o ,
Tennessee ( " M i d - S o u t h " ) , also a bank holding company. As a result of the merger, Mid-South's subsidiary bank, Mid-South Bank and Trust C o m p a n y , Murfreesboro, Tennessee ( " B a n k " ) , would b e c o m e a
direct subsidiary of Applicant.
Notice of the application, affording interested persons an opportunity to submit comments, has been
given in accordance with section 3(b) of the Act
(12 U . S . C . § 1842(b)). The time for filing c o m m e n t s
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 is the second largest commercial banking
organization in Tennessee and controls deposits of
$3.21 billion, representing 12.4 percent of the total
deposits in commercial banks in the state. 1 Mid-South
is the tenth largest commercial banking organization in
the state and controls deposits of $297 million, repre-
senting 1.1 percent of the total deposits in commercial
banks in the state. U p o n merging with Mid-South,
Applicant would control deposits of $3.51 billion,
representing 13.5 percent of the total deposits in
commercial banks in the state, and would remain the
second largest commercial banking organization in the
state. The merger would have no significant effect on
the concentration of banking r e s o u r c e s in Tennessee.
Applicant and Mid-South c o m p e t e directly in the
Nashville banking market. 2 Applicant is the largest of
18 commercial banking organizations in the market,
with deposits of $1.29 billion, representing 26.2 percent of the total deposits in commercial banks in the
market. Mid-South is the sixth largest commercial
banking organization in the m a r k e t , with deposits of
$187 million, representing 3.8 percent of the total
deposits in commercial banks in the market. U p o n
merging with Mid-South, Applicant would control 30.0
percent of the total deposits in commercial banks in
the market.
The Nashville banking market is concentrated, with
the three largest commercial banking organizations
controlling 72.3 percent of the total deposits in commercial banks in the market, and with a HerfindahlHirschman Index ( " H H I " ) of 1858. T h e proposed
merger would increase the H H I by 199 points to 2057
and would thus be subject to challenge under the
Department of Justice Merger Guidelines. 3
Although the proposed merger would eliminate existing competition between Applicant and Mid-South
in the Nashville banking m a r k e t , the Board notes that
17 competitors, including five of the state's six largest
commercial banking organizations, would remain in
the market. In addition, the Board has concluded that
the effect of the merger on existing competition is
mitigated by the extent of competition offered by thrift
institutions in the Nashville market. 4 Ten thrift institu-
2. The Nashville banking market consists of Davidson, Rutherford,
Williamson, and Wilson Counties, and the southern halves of Robertson and Sumner Counties, all in Tennessee.
3. Under the revised Department of Justice Merger Guidelines (49
Federal Register 26,823 (1984)), a market in which the post-merger
HHI is above 1800 is considered highly concentrated, and the Department is likely to challenge a merger that increases the HHI by 50
points or more unless other facts of record indicate that the merger is
not likely substantially to lessen competition. Other factors include
the post-merger HHI, the increase in the HHI, changing market
conditions, the financial condition of the firm to be acquired, ease of
entry, nature of the product, substitute products, similarities in firms
that are subject to the transaction, and increased efficiencies that may
result from the transaction.
The Department has not advised the Board of any objection to
Applicant's proposed merger with Mid-South.
4. The Board has previously determined that thrift institutions have
become, or at least have the potential to become, major competitors of
banks.
1. Statewide banking data are as of June 30, 1984. Data for local
banking markets are as of June 30, 1983.
NCNB
Corporation,
( 1 9 8 4 ) ; Sun
Banks,
Merchants
Bancorp,
Inc.,
7 0 F E D E R A L RESERVE B U L L E T I N
Inc.,
69
FEDERAL
RESERVE
(1983); First Tennessee National Corporation,
BULLETIN 2 9 8 (1983).
225
6 9 F E D E R A L RESERVE B U L L E T I N 9 3 4 ( 1 9 8 3 ) ;
BULLETIN
865
69 FEDERAL RESERVE
Legal Developments
tions with 53 offices in the market hold total deposits
of $1.39 billion, representing 22.1 percent of the total
deposits in the market. Most of those institutions offer
N O W accounts and make consumer loans and commercial real estate loans; half engage in additional
commercial lending. In view of those facts, the Board
considers the presence of thrift institutions as a significant factor in assessing the competitive effects of the
proposed merger, and has determined that the merger
is not likely to have a significant adverse effect on
existing competition in the Nashville banking market. 5
Mid-South operates in the Franklin County, Smith
County, and Warren County banking markets, where
Applicant does not currently compete. 6 The Board has
examined the effect of the proposed merger upon
probable future competition in those markets in light
of the B o a r d ' s proposed market extension guidelines. 7
N o n e of the markets is in a metropolitan statistical
area, and under the B o a r d ' s guidelines, none would be
considered attractive for entry. 8 The Board has accordingly concluded that the proposed merger would
have no significant adverse effect on probable future
competition in any of those markets.
The financial and managerial resources and future
prospects of Applicant and Mid-South are considered
satisfactory and consistent with approval of the application.
Applicant plans to have Bank offer new services,
including commercial leasing, international banking,
trust, financial counseling, and cash management services, and F H A , VA, and secondary-market mortgage
lending. B a n k ' s customers would also gain access to a
much larger A T M network. In addition, the merger
would allow Bank to meet the credit needs of larger
commercial customers. Thus, considerations related
to the convenience and needs of the communities to be
served lend weight toward approval of the application.
Based on the foregoing and other facts of record, the
Board has determined that the application should be
5. If 50 percent of the deposits held by thrift institutions were
included in the calculation of market concentration, the pre-merger
HHI would decrease to 1467. The proposed merger would increase the
HHI by 153 points to 1620. Applicant's post-merger market share
would be 23.4 percent.
The Department of Justice has informed the Board that a bank
merger or acquisition generally will not be challenged (in the absence
of other factors indicating an anticompetitive effect) unless the merger
increases the HHI by at least 200 points and the post-merger HHI is at
least 1800.
6. Those banking markets respectively consist of Franklin County,
Smith County, and Warren County, all in Tennessee.
7. "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 (1982). While the proposed policy statement has not
been adopted by the Board, the Board is using the policy Guidelines as
part of its analysis of the efFect of a merger on probable future
competition.
8. In none of the three markets do the total deposits in commercial
banks exceed $250 million.
647
and hereby is a p p r o v e d . The merger 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
that period is extended for good cause by the Federal
Reserve Bank of Atlanta, pursuant to delegated authority, or by the Board.
By order of the Board of Governors, effective
June 19, 1985.
Voting for this action: Governors Partee, Rice, Gramley,
and Seger. Absent and not voting: Chairman Volcker and
Governors Martin and Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
United Banks of Colorado, Inc.
Denver, Colorado
Order Approving
Acquisition
of a Bank
United Banks of Colorado, Inc., D e n v e r , Colorado, a
bank holding c o m p a n y within the meaning of the Bank
Holding Company Act ( " A c t " ) (12 U . S . C . § 1841
et seq.), has applied for the B o a r d ' 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 Colorado
Springs National Bank, Colorado Springs, Colorado
("Bank").
Notice of the application, affording an opportunity
for interested persons to submit c o m m e n t s , has been
given in accordance with section 3(b) of the Act. The
time for filing c o m m e n t s 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)). 1
Applicant, the largest banking organization in Colorado, controls 31 b a n k s with total deposits of approximately $3.1 billion, representing approximately 17.3
percent of the total deposits in commercial banks in
the state. 2 Bank is the 8th largest commercial banking
1. The Board received a protest from the Association of Community Organizations for Reform Now ("ACORN") a community group
that challenged Applicant's record of meeting the credit needs of its
community under the Community Reinvestment Act. ACORN withdrew its protest after a meeting with Applicant, which resulted in an
agreement with Applicant for additional meetings with ACORN and
check cashing privileges for Government checks for persons who do
not have accounts with Applicant's subsidiary banks.
2. All banking data are as of December 31, 1983, and reflect the
Board's approval on November 26, 1984, for Applicant to acquire
IntraWest Bank of Colorado Springs, N.A. (71 FEDERAL RESERVE
BULLETIN 131 (1985)). Although this transaction has not been consummated, the analysis of this proposal assumes that IntraWest Bank
is a subsidiary of Applicant.
648
Federal Reserve Bulletin • August 1985
organization in the state with total deposits of $185.2
million, representing approximately 1.0 percent of the
total deposits in commercial banks in the state. U p o n
acquisition of Bank, Applicant's share of the total
deposits in commercial banks in the state would increase to 18.3 percent. Accordingly, consummation of
this proposal would not result in a significant increase
in the concentration of banking resources in Colorado.
Applicant and Bank both operate in the Colorado
Springs banking market. 3 Applicant, the fourth largest
commercial banking organization in the market, operates four banking subsidiaries in the market that
control $125.2 million in deposits, representing 9.9
percent of total deposits in commercial banks in the
market. Bank, with deposits of $185.2 million, is the
third largest commercial banking organization in the
market and controls 14.7 percent of total deposits in
commercial banks in the market. Upon consummation
of this transaction, Applicant would b e c o m e the largest commercial banking organization in the market and
would control 24.6 percent of the total deposits in
commercial banks in the market.
The Colorado Springs banking market is considered
to be moderately concentrated, with the four largest
commercial banking organizations controlling 64.2
percent of the total deposits in commercial banks in
the market.
The Herfindahl-Hirschman
Index
( " H H I " ) is 1265 and would increase by 291 points to
1576 upon consummation of this proposal. 4
Although consummation of the proposal would eliminate some existing competition between Applicant
and Bank in the Colorado Springs banking market,
numerous other commercial banking organizations
would remain as competitors after consummation of
the proposal. In addition, the presence of ten thrift
institutions that control approximately 39.4 percent of
the m a r k e t ' s total deposits mitigates the anticompetitive effects of the transaction. 5 Thrift institutions already exert a considerable competitive influence in the
market as providers of N O W accounts and consumer
loans. In addition, most of the thrift institutions are
3. The Colorado Springs banking market is approximated by the
Colorado Springs RMA.
4. Under the revised Department of Justice Merger Guidelines (49
Federal Register 26,823 (1984)), where a market has a post-merger
HHI of between 1000 and 1800 the Department is likely to challenge a
transaction that produces an increase in the HHI of more than 100
points, unless other facts of record indicate that the merger is not
likely to substantially lessen competition. The Department of Justice
has informed the Board that a bank merger or acquisition generally
will not be challenged (in the absence of other factors indicating an
anticompetitive effect) unless the post-merger HHI is at least 1800 and
the increase in the HHI caused by the merger is at least 200.
5. The Board has previously indicated that thrift institutions have
become, or have the potential to become, major competitors of
commercial banks. National City Corporation, 70 FEDERAL RESERVE
B U L L E T I N 7 4 3 ( 1 9 8 4 ) ; NCNB
Bancorporation,
7 0 F E D E R A L RESERVE
BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL
RESERVE BULLETIN 802 (1983); First Tennessee National Corporation,
6 9 F E D E R A L RESERVE B U L L E T I N 2 9 8 ( 1 9 8 3 ) .
engaged in the business of making commercial loans
and are providing an alternative for such services in
the Colorado Springs market. B a s e d upon the above
considerations, the Board concludes that consummation of the proposal is not likely to substantially lessen
competition in the Colorado Springs banking market. 6
The financial and managerial r e s o u r c e s of Applicant, its subsidiary banks, and B a n k are consistent
with approval. Considerations relating to the convenience and needs of the communities to b e served are
also consistent with approval. B a s e d on the foregoing
and other facts of record, the Board h a s determined
that consummation of the p r o p o s e d transaction would
be in the public interest and that the application should
be approved.
On the basis of the record, the application is approved for the reasons summarized above. The acquisition shall not be c o n s u m m a t e d before the thirtieth
calendar day following the effective date of this Order,
or later than three m o n t h s 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
Kansas City pursuant to delegated authority.
By order of the Board of Governors, effective
June 28, 1985.
Voting for this action: Vice Chairman Martin and Governors Wallich, Partee, Rice, Gramley, and Seger. Absent and
not voting: Chairman Volcker.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Orders Issued Under Section 4 of Bank Holding
Company Act
Barnett Banks of Florida, Inc.
Jacksonville, Florida
Order Approving Application to Engage in Credit
Card Authorization Services and Lost/Stolen
Credit
Card Reporting
Services
Barnett Banks of Florida, Inc., Jacksonville, Florida,
a bank holding c o m p a n y within the meaning of the
Bank Holding C o m p a n y Act ( " A c t " ) , 12 U . S . C .
§ 1841 et seq., has applied for the B o a r d ' s approval,
pursuant to section 4(c)(8) of the Act (12 U . S . C .
6. If 50 percent of deposits held by thrift institutions in the
Colorado Springs banking market were included in the calculation of
market concentration, the share of total deposits held by the four
largest organizations in the market would be 48.5 percent. Applicant
would control 7.5 percent of the market's deposits and Bank would
control 11.1 percent of the market's deposits. The HHI would
increase by 166 points to 976.
Legal Developments
§ 1843(c)(8)) and section 225.23 of the Board's Regulation Y (12 C.F.R. § 225.23), to engage de novo through
its existing nonbank subsidiary, Verifications Inc.,
Jacksonville, Florida ("Verifications"), in credit card
authorization services and lost/stolen credit card reporting services. The credit card authorization activity
would consist of providing, for a fee, a service to
issuers of credit cards that would enable merchants to
determine the validity and credit limits of credit cards
tendered to them. In addition, Applicant would provide, for a fee, a reporting service to credit card
holders that would enable them to report the loss or
theft of any of their credit cards via a single toll-free
telephone call to Verifications, Inc. These activities
have not been specified by the Board in section 225.25
of Regulation Y as permissible for bank holding companies.
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published, 50 Federal Register 19,471 (1985). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the public interest factors set forth in
section 4(c)(8) of the Act.
Applicant is the largest banking organization in
Florida, with total consolidated assets of $12.5 billion. 1 Applicant engages in certain nonbank activities,
including trust activities, data processing, consumer
and sales financing, check verification services, discount brokerage, mortgage banking, and reinsurance
services.
In order to approve an application under section
4(c)(8) of the Act, the Board must determine that the
proposed activity is " s o closely related to banking or
managing or controlling banks as to a proper incident
thereto . . . " 12 U.S.C. § 1843(c)(8). In determining
whether an activity is closely related to banking under
section 4(c)(8), the Board has relied on guidelines
established by the federal courts to determine whether
a particular activity meets the "closely related to
banking" test. 2 Under these guidelines, an activity
may be found to be closely related to banking if it is
demonstrated that (1) banks generally have, in fact,
provided the proposed service; or (2) that banks
generally provide services that are operationally or
functionally so similar to the proposed services as to
equip them particularly well to provide the proposed
service; or (3) that banks generally provide services
that are so integrally related to the proposed service as
to require their provision in a specialized form. The
1. All banking data are as of December 31, 1984.
2. See National Courier Association v. Board of Governors, 516
F.2d 1229 (D.C. Cir. 1975) Accord, Securities Industry Ass'n. v.
Board of Governors of the Federal Reserve System,
U.S.
, 104, S. Ct. 3003, 3008 (1984).
649
Board has previously found these guidelines useful in
determining whether there is a reasonable basis for
determining that a proposed nonbanking activity is
closely related to banking. Using these criteria, the
Board believes that banks generally have, in fact,
provided the services proposed by Applicant and are
particularly well suited to provide the proposed services. On this basis, the Board concludes that the
proposed services are closely related to banking.
The facts of record indicate that banks that offer
credit cards, including affiliates of Applicant, typically
offer a telephone hotline for reporting lost or stolen
cards. A number of banks currently indirectly offer the
service of reporting lost cards issued by other institutions by arranging with independent companies to
provide the service under a trade name associated with
the bank. With respect to credit card authorization
services, banks have a financial interest in the security
of the credit cards they issue, and already have
systems to determine the validity of transactions affecting their cards and the availability of credit. Moreover, Applicant currently maintains an extensive electronic communications and data processing network to
operate its 24-hour check verification service, and is
therefore particularly well-suited to add credit card
authorization to its existing activities and to handle the
reporting of lost or stolen credit cards on a volume
basis.
Before approving a bank holding company's application to engage in an activity that the Board determines is closely related to banking, the Board must
also find that consummation of the proposal can
reasonably be expected to produce benefits to the
public that outweigh possible adverse effects. The
proposed credit card reporting service would provide
an additional source of competition in this field and
allow an individual who loses more than one card to
report all lost cards at once to one source rather than
having to make separate calls to each card issuer,
thereby providing greater convenience and efficiency
to the customer and reducing confusion and delay. In
addition, by engaging in credit card authorization
services, Applicant would not only provide greater
customer convenience but also an additional source of
competition in a field in which a limited number of
independent organizations are active.
Financial and managerial considerations are consistent with approval of this proposal. Moreover, there is
no evidence in the record that consummation of this
proposal would result in adverse effects such as unsound banking practices, unfair competition, conflicts
of interests or an undue concentration of resources.
Based upon the foregoing and all the facts of record,
the Board has determined that the balance of public
interest factors it is required to consider under section
4(c)(8) is favorable. Accordingly, the application is
650 Federal Reserve Bulletin • August 1985
hereby a p p r o v e d . This determination is subject to all
of the conditions set forth in the B o a r d ' s Regulation Y,
including those in sections 225.4(d) and 225.23(b). The
approval is also subject to the B o a r d ' s authority to
require modification or termination of the activities of
the holding c o m p a n y or any of its subsidiaries as the
Board finds necessary to assure compliance with the
provisions and p u r p o s e s of the Act and the B o a r d ' s
regulations and orders issued thereunder, or to prevent evasion thereof.
This transaction shall not be consummated later
than three m o n t h s after the effective date of this
Order, unless such period is extended for good cause
by the Board, or by the Federal Reserve Bank of
Atlanta, pursuant to delegated authority.
By order of the Board of Governors, effective
June 5, 1985.
Voting for this action: Vice Chairman Martin and Governors Partee, Gramley, and Seger. Absent and not voting:
Chairman Volcker and Governors Wallich and Rice.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Chase Manhattan Corporation
New York, New York
Order Approving Application to Execute and Clear
Futures Contracts on a Municipal Bond Index and to
Provide Futures Advisory
Services
The Chase Manhattan Corporation, N e w York, N e w
York, a bank holding c o m p a n y within the meaning of
the Bank Holding C o m p a n y Act, 1 2 U . S . C . § 1 8 4 1
et seq. ( " B H C A c t " ) , has applied pursuant to section
4(c)(8) of the B H C Act and section 225.21(a) of the
B o a r d ' s Regulation Y, 12 C . F . R . § 225.21(a), to engage, through its subsidiary, Chase Manhattan F u t u r e s
Corporation ( " C M F C " ) , in the execution and clearance of f u t u r e s contracts on a municipal bond index on
major commodities exchanges for non-affiliated persons and corporate affiliates, and the provision of
advisory services to non-affiliated persons with respect to futures contracts and options on f u t u r e s
contracts that C M F C is permitted to execute and
clear.
Notice of the application, affording interested persons an opportunity to submit comments on the relation of the p r o p o s e d activity to banking and on the
balance of the public interest factors regarding the
application, has been duly published, 50 Federal Register 15,979 (1985). T h e time for filing c o m m e n t s has
expired and the Board has considered the application
and all c o m m e n t s received in light of the public
interest factors set forth in section 4(c)(8) of the B H C
Act. 1
Applicant, with total consolidated assets of $87.5
billion, 2 is the third largest b a n k holding company in
the United States. Applicant operates three commercial banks and also engages in various nonbanking
activities through a n u m b e r of subsidiaries. C M F C is a
Futures Commission M e r c h a n t ( " F C M " ) registered
with the Commodity F u t u r e s Trading Commission
( " C F T C " ) that engages in f u t u r e s trading activities
permissible for bank holding companies under section
225.25(b)(18) of the B o a r d ' s Regulation Y, 12 C . F . R .
§ 225.25(b)(18).
The Board has previously a p p r o v e d the execution
and clearance of f u t u r e s contracts on a municipal bond
index. Bankers Trust New York Corporation, 71 FEDERAL
RESERVE
BULLETIN
111
(1985)
("Bankers
Trust"). T h e factors upon which the Board based its
approval decision in Bankers Trust are present in this
application. The proposed f u t u r e s contract is a financial future that is based on an index of general obligation bonds and revenue b o n d s selected by The Bond
Buyer. Applicant's subsidiary, T h e Chase Manhattan
Bank, has long been a major participant, both for its
own account and for the accounts of its customers, in
the municipal securities market as an underwriter of
and dealer in general obligation bonds and other bankeligible municipal securities. 3
The Board has determined that Applicant's proposal
to execute and clear such f u t u r e s contracts is substantially similar to the proposal approved by the Board in
Bankers Trust, and Applicant's prior experience in the
municipal securities m a r k e t s indicates that C M F C
would have the expertise to provide the proposed
services. Accordingly, the Board concludes that, in
the manner proposed, and subject to the conditions set
forth in section 225.25(b)(18) of Regulation Y, Applic a n t ' s proposal to execute and clear f u t u r e s contracts
on a municipal bond index is closely related to banking.
With respect to the proposed advisory services,
such services also w e r e authorized in Bankers Trust
and several other cases. 4 Applicant proposes to pro-
1. The Board received a comment regarding certain alleged administrative practices by Applicant's banking subsidiary. These alleged
practices are of such marginal relevance to the proposed transaction,
however, that the Board is unable to accord them any weight in its
analysis of Applicant's proposal.
2. As of September 30, 1984.
3. Banks are prohibited by the Glass-Steagall Act from dealing in
revenue bonds, although they may hold certain municipal revenue
bonds, 12 U.S.C. § 24(7). However, as in Bankers Trust, Applicant
would not be dealing in or underwriting revenue bonds, but would be
executing and clearing a futures contract on an index that includes
such bonds.
4 . J.P.
Morgan
& Co.,
Incorporated,
LETIN 780 (1984); Manufacturers
RESERVE B U L L E T I N 3 6 9 ( 1 9 8 4 ) .
7 0 F E D E R A L RESERVE B U L -
Hanover Corporation,
70 FEDERAL
Legal Developments
vide investment advice and advisory services either on
a separate fee basis or as an integrated package of
services to F C M customers. The services would include written or oral presentations on the futures
markets, a demonstration of the uses of financial
f u t u r e s for hedging, and assistance in structuring hedging strategies. Applicant will deal solely with major
corporations and other financial institutions in its
provision of the proposed advisory services, and will
not act as a principal with respect to any of the
instruments involved.
In order to approve this application, the Board is
also required to determine that the performance of the
proposed activities by Applicant " c a n reasonably be
expected to produce benefits to the public . . . that
outweigh possible adverse effects . . . . " (12 U . S . C .
§ 1843(c)(8)). Consummation of Applicant's proposal
would provide added services to those clients of
Applicant and its subsidiaries that trade in the cash,
forward and f u t u r e s markets for these instruments. As
a result, the Board expects that the de novo entry of
Applicant into the market for these services would
increase the number of participants in the municipal
bond index f u t u r e s market, and would increase the
level of competition among providers of these services. Accordingly, the Board concludes that the
performance of the proposed activities by Applicant
can reasonably be expected to produce benefits to the
public.
The Board has also considered the potential for
adverse effects that may be associated with this proposal. There is no evidence in the record that consummation of the proposed transactions would result in
any adverse effects such as decreased competition,
undue concentration of resources, unfair competition,
conflicts of interest, or unsound banking practices.
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. H o w e v e r , the Board
notes that trading of the futures contract involved in
this application has not been approved by the C F T C .
Accordingly, approval of Applicant's proposal is conditioned upon C F T C approval of a contract substantially similar to that described in the application to the
Board. In addition, the Board reserves authority to
reconsider its actions in approving the proposal as a
record of F C M experience with respect to trading of
this contract develops.
This determination is also subject to all of the
conditions set forth in Regulation Y, including sections
225.4(d) and 225.23(b)(3) (12 C . F . R . §§ 225.4(d) and
225.23(b)(3)), and to the B o a r d ' s authority to require
such modification or termination of the activities of a
bank holding c o m p a n y or any of its subsidiaries as the
Board finds necessary to assure compliance with the
651
provisions and p u r p o s e s of the Act and the B o a r d ' 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 R e s e r v e Bank of N e w York pursuant to
delegated authority.
By order of the Board of Governors, effective
June 3, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Gramley, and Seger. Absent and not voting:
Governors Wallich and Rice.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Independent Bankers Financial Corporation
Dallas, Texas
Order Approving Application
Securities Brokers' Broker
to Act as a
Municipal
Independent Bankers Financial Corporation, Dallas,
Texas, a bank holding c o m p a n y by virtue of its control
of Texas Independent Bank, Dallas, T e x a s , has applied for the B o a r d ' s approval, pursuant to section
4(c)(8) of the Bank Holding C o m p a n y Act of 1956
( " A c t " ) (12 U . S . C . § 1843(c)(8)) and section 225.21(a)
of the B o a r d ' s Regulation Y (12 C . F . R . § 225.21(a)),
to acquire, through its securities brokerage subsidiary,
Independent Brokerage of America, a 49 percent interest in a joint venture partnership, G . I . B . , N e w York,
N e w York ( " C o m p a n y " ) .
The other 51 percent of C o m p a n y ' s shares would be
owned by G G B Holding, Inc., N e w York, N e w York,
a wholly owned subsidiary of Mills & Allen International P L C , L o n d o n , England ("Mills & A l l e n " ) , a
publicly-held multinational c o m p a n y that engages in
the wholesale brokerage of securities, money market
instruments and insurance and in the advertising business in the United Kingdom and other countries,
including the United States. 1 G G B Holding, Inc. was
formed for the p u r p o s e of holding Mills & Allen's
interest in C o m p a n y and would engage in no activities
other than those c o n d u c t e d through the joint venture.
Applicant, with total deposits of $97.4 million, 2 is a
one-bank holding c o m p a n y f o r m e d over a b a n k e r s '
bank. The shareholders of Applicant are 325 banks in
Texas.
1. Mills & Allen does not presently engage in securities underwriting or dealing in the United States. Its securities activities in the
United States consist of brokerage of U.S. government securities and
money market instruments.
2. Banking data are as of September 30, 1984.
652
Federal Reserve Bulletin • August 1985
Company proposes to engage in the activity of
acting as a municipal securities brokers' broker, as
defined by Rule 15c3—1 implementing section 15(c)(3)
of the Securities Exchange Act of 1934. 3 Company
would offer such services through offices located in
N e w Y o r k , Atlanta and Dallas and provide its services
(largely by telephone) to securities brokers and dealers, including dealer banks, located throughout the
United States. The N e w York office would be located
in the same building as other Mills & Allen affiliates,
but there would b e separate offices and separate
entrances. Notice of the application, affording interested persons an opportunity to submit comments, has
been duly published (50 Federal Register 3029 (1985)).
The time for filing c o m m e n t s has expired, and the
Board has considered the application and all comments received in light of the public interest factors set
forth in section 4(c)(8) of the Act.
U n d e r the proposal, C o m p a n y would provide municipal securities brokerage services to other registered securities brokers and dealers, including dealer
banks, consisting of acting as an undisclosed agent in
the purchase and sale of municipal securities, including revenue bonds, for the account of its customers.
The proposed activity of acting as a b r o k e r s ' broker
of municipal securities has not been approved previously by the Board. Section 4(c)(8) of the Act permits
a bank holding c o m p a n y to engage, directly or through
a subsidiary, in activities that the Board has determined to be " s o closely related to banking . . . as to be
a proper incident t h e r e t o . " Under the guidelines established in National Courier Association v. Board of
Governors, a particular activity may be found to meet
the "closely related to b a n k i n g " test if it is demonstrated that b a n k s generally have in fact provided the
proposed activity; banks generally provide services
that are operationally or functionally so similar to the
proposed activity so as to equip them particularly well
to provide the proposed activity; or that banks generally provide services that are so integrally related to
the proposed activity as to require their provision in a
specialized form. 4 T h e record indicates that the proposed activity meets t w o of the three criteria estab-
3. Rule 15c3-l(a)(8)(ii) implementing section 15(c)(3) of the Securities and Exchange Act of 1934 defines a municipal securities brokers'
broker as a "municipal securities broker or dealer who acts exclusively as an undisclosed agent in the purchase or sale of municipal
securities for a registered broker or dealer or registered municipal
securities dealer" who has "no retail customers" and "maintains no
municipal securities in its proprietary or other accounts." Municipal
securities brokers' brokers are subject to the federal securities laws
applicable to securities brokers and are governed by the rules of the
Municipal Securities Rulemaking Board.
4. 516 F.2d 1229 (D.C. Cir. 1975). The National Courier guidelines
are not the exclusive basis for finding a close relationship between a
proposed activity and banking.
lished under National Courier, b e c a u s e banks currently engage in the activity and the activity is functionally
equivalent to the securities brokerage services banks
provide to their customers.
Applicant's proposal involves the p u r c h a s e and sale
of municipal securities as agent only and would not
include dealing or otherwise taking a position in such
securities. Thus, the activity falls within the third
party securities activities permitted for m e m b e r banks
under section 16 of the Glass-Steagall Act (12 U . S . C .
§ 24) which permits b a n k s to p u r c h a s e and sell securities " w i t h o u t recourse, solely u p o n the order, and for
the account of, c u s t o m e r s . " T h e record shows that
national banks have been permitted to engage in the
activity of acting as municipal securities b r o k e r s '
brokers.
In addition, the Board finds that the proposed
activity, acting as an intermediary between principals
in order to allow them to buy and sell municipal
securities in the secondary market in an anonymous
manner, is functionally similar to the retail securities
brokerage activities p e r f o r m e d by banks for their
customers as permitted under section 16 of the G l a s s Steagall Act. Accordingly, the Board concludes that
the proposed activity of acting as a municipal securities b r o k e r s ' broker is closely related to banking
within the meaning of section 4(c)(8) of the Bank
Holding Company Act.
In addition to determining w h e t h e r an activity is
closely related to banking, the Board must consider
whether Applicant's p e r f o r m a n c e of the proposed
activities can " r e a s o n a b l y 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 u n d u e
concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking
p r a c t i c e s . " 12 U . S . C . § 1843(c)(8). The consideration
of possible adverse effects also requires an evaluation
of the financial and managerial aspects associated with
the proposal. 12 C . F . R . § 225.24. After review of the
application and other f a c t s of record, including Applic a n t ' s representations concerning its obligations to
customers under securities and other laws, the Board
finds that Applicant's conduct of the proposed activity
would not result in adverse effects and finds that
financial and managerial considerations are consistent
with approval.
Applicant states that the p u r p o s e of the joint venture
is to permit the parties to combine their unique skills in
order to offer a service that neither partner would be
able to offer successfully on an independent basis.
Mills & Allen has stated that it requires a domestic
partner with knowledge of the municipal securities
markets and a c u s t o m e r base in order to expand its
Legal Developments
securities brokerage activities to include municipal
securities. Applicant has stated it has developed such
knowledge through the municipal securities dealing
operations of its banking subsidiary. In addition, Applicant has indicated that its existing municipal securities dealing customers desire access to brokerage
services that Applicant is unable to provide without a
financial partner and a New York office. Applicant has
stated that its association with Mills & Allen would
provide the capital and a New York presence necessary to enter this field.
Prior decisions of the Board in joint venture cases
indicate a concern that joint ventures not lead to a
matrix of relationships between co-venturers that
could erode the legally mandated separation of banking and commerce, lead to conflicts of interests, result
in an undue concentration of resources, or compromise the impartiality of the banking organization in the
performance of credit evaluation or fiduciary services. 5 In its conditional approval of the joint venture
between Amsterdam-Rotterdam Bank, N.V. and a
company that engaged in the sponsorship, distribution
and management of mutual funds, the Board stated
that this concern is exacerbated where the joint venture involves a relationship between a bank holding
company and a company that engages in securities
activities that are restricted under the Glass-Steagall
Act, because of the potential for the mingling of
permissible and impermissible securities activities. 6
In this case, Mills & Allen has stated that it engages
domestically only in securities activities that would be
permissible for bank holding companies under the
Glass-Steagall Act. However, the Board is concerned
that in the future Mills & Allen might alter its securities activities in a way that might result in the mingling
of permissible activities with impermissible activities.
To address these concerns, Applicant and Mills &
Allen have made a number of commitments to the
Board.
The commitments made by Applicant, and agreed to
by Mills & Allen, are intended to prevent the joint
5. See, e.g., The Maybaco Company and Equitable
Bancorporation, 69 FEDERAL RESERVE BULLETIN 375 (1983), and Deutsche Bank
AG,
6 7 F E D E R A L RESERVE B U L L E T I N 4 4 9 ( 1 9 8 1 ) . I n t h e
Deutsche
Bank case, the Board denied one part of the joint venture application
on the basis that the public benefits of the proposal did not outweigh
the generalized adverse effects that could result from a joint venture
between a large banking organization and a large nonbanking company to engage in a broad range of financing activities.
6 . See
Amsterdam-Rotterdam
Bank,
N.V.,
7 0 F E D E R A L RESERVE
BULLETIN 835 (1984) (investment advisory joint venture with a nonU.S. company that sponsored mutual funds), and The Maybaco
Company and Equitable Bancorporation, 60 FEDERAL RESERVE BULLETIN 375 (1983) (mortgage banking joint venture with an investment
banking firm).
653
venture from becoming involved in impermissible securities activities directly or indirectly and to prevent
it from being unduly influenced by Mills & Allen
affiliates that may engage in securities dealing in the
future.
The Board finds that the commitments made by
Applicant and by Mills & Allen largely address the
Board's concerns in the context of the facts and
circumstances of this application. The commitments
are as follows:
1. Mills & Allen agrees to notify the Board and
Applicant of any expansion of its or its subsidiaries'
activities in the United States and its or its subsidiaries' securities activities generally into areas other
than those currently conducted by Mills & Allen or
its subsidiaries no later than the earlier of:
(i) the date upon which any public announcement
is made of such proposed new securities activity
or
(ii) the date upon which Mills & Allen or its
subsidiary actually commences such new securities activity.
2. In the event that Mills & Allen or its subsidiaries
expand their securities activities beyond those currently set forth in the application such that notice to
the Board and Applicant is required pursuant to
paragraph (1) hereof, Applicant agrees that it will
apply to the Board for approval of its retention of its
interest in Company.
3. Mills & Allen represents and commits that no
officer, director or employee of Company is now or
will at any time concurrently serve as an officer or
employee of Mills & Allen or its subsidiaries or
affiliates; provided, however, that the Chairman of
the Board of Directors of Company may serve as an
officer, director or employee of a Mills & Allen
subsidiary.
4. Applicant and Mills & Allen agree that the offices
of Company will be kept separate from the offices of
Applicant and other subsidiaries of Mills & Allen in
that, although located in the same office building as
the offices of other subsidiaries of Mills & Allen,
Company will have a separate entrance and telephone number.
5. Applicant agrees that it and its officers, employees and affiliates will not distribute prospectuses or
sales literature for Mills & Allen or its subsidiaries
and will not make any such literature available to the
public at any of their offices.
6. Applicant agrees to instruct its officers and employees and those of its affiliates not to express any
opinion concerning the advisability of purchasing
any securities or services from Mills & Allen or any
of its subsidiaries other than the municipal securities
brokerage services offered by Company.
654
Federal Reserve Bulletin • August 1985
7. Applicant agrees that it will not furnish the names
of its customers or those of its affiliates to Mills &
Allen or its subsidiaries, except that such information may be furnished to C o m p a n y .
8. Applicant and Mills & Allen agree that neither
Mills & Allen nor any of its subsidiaries will own or
lease offices in any building which is identified in the
public's mind with Applicant or its affiliates.
9. Applicant and Mills & Allen agree that neither
Applicant nor its affiliates will act as registrar,
transfer agent or custodian for securities of Mills &
Allen or its subsidiaries.
10. Applicant and Mills & Allen agree that no
officer, director or employee of Mills & Allen or its
subsidiaries will concurrently serve as an officer,
director or employee of Applicant or its affiliates
provided, h o w e v e r , that this commitment shall not
prohibit a single individual w h o is an officer, director or employee of Mills & Allen or its subsidiaries
f r o m serving as a chairman of the board or a director
of Company.
11. Applicant and Mills & Allen agree that neither
Applicant nor any of its affiliates will engage, directly or indirectly, in the sale or distribution of any
securities offered by Mills & Allen or its subsidiaries
nor purchase any such securities for its own account, other than municipal securities purchased
through C o m p a n y .
12. Applicant and Mills & Allen agree that neither
Applicant nor any of its affiliates will purchase any
securities through Mills & Allen or subsidiaries of
Mills & Allen in a fiduciary capacity other than
municipal securities through Company.
13. Neither Applicant nor any of its affiliates will
make any investment in Mills & Allen or its subsidiaries or nominate any directors of Mills & Allen or
its subsidiaries other than its investment in Company and its nominees to the board of directors of
Company.
14. Neither Applicant nor any of its affiliates will
take into account the fact that a potential borrower
competes with C o m p a n y in determining whether to
extend credit to such b o r r o w e r .
15. Mills & Allen represents that neither it nor any
of its subsidiaries currently engages or plans to
engage in the underwriting or issuing of securities in
the United States or outside of the United States
other than the self-issuance of securities of Mills &
Allen or its subsidiaries.
other in the municipal securities market or any other
product market either in the United States or abroad.
The Board also notes that Applicant does not appear
to be a likely independent entrant into the market,
because the cost of doing so on a de novo basis would
be prohibitive. T h e relatively small absolute size of
Applicant, w h e n coupled with Applicant's limited domestic presence, also d e m o n s t r a t e s that the proposal
would be unlikely to result in an u n d u e concentration
of resources.
In light of the foregoing, the Board finds no evidence
in the record to indicate that consummation of the
proposal would result in adverse effects on the public
interest. M o r e o v e r , the Board is satisfied that approval of this application does not present the opportunity
for unsound banking practices.
The Board finds that c o n s u m m a t i o n of this proposal
may be expected to result in public benefits that
outweigh possible adverse effects. In particular, the
proposal to add Company as a provider of the services
would p r o m o t e competition and would allow bank
holding companies to offer a convenient service to
banks and financial institutions that deal in municipal
securities.
Based on the foregoing and other facts of record, the
Board has determined that the balance of the public
interest factors it is required to consider under section
4(c)(8) of the Act is favorable. Accordingly, the application should be and hereby is a p p r o v e d . In approving
this application, the Board has relied on all the commitments offered by Applicant and the conditions in
this Order. This determination is subject to all of the
conditions set forth in the B o a r d ' s Regulation Y,
including those in sections 225.4(d) and 225.23(b), and
to the B o a r d ' 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 B o a r d ' s regulations
and orders issued thereunder, or to prevent evasion
thereof.
The proposed activity shall b e c o m m e n c e d 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
Dallas, acting pursuant to delegated authority.
By order of the Board of G o v e r n o r s , effective
June 26, 1985.
The Board finds that consummation of the proposed
transaction would not eliminate any existing or potential competition between Mills & Allen and Applicant,
but rather would add a competitor to the field of
domestic providers of these services. The co-venturers are not and have not been in competition with each
Voting for this action: Vice Chairman Martin and Governors Wallich, Partee, Rice, Gramley, and Seger. Absent and
not voting: Chairman Volcker.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the
Board
Legal Developments
MCorp
Dallas, Texas
MCorp Financial, Inc.
Wilmington, Delaware
Order Approving
Activities
Retention of Data
Processing
MCorp, Dallas, Texas, and its wholly owned subsidiary MCorp Financial, Inc., Wilmington, Delaware,
both bank holding companies within the meaning of
the Bank Holding Company Act (12 U.S.C. § 1841
et seq.) ( " A c t " ) , have applied for the Board's approval under section 4(c)(8) of the Act (12 U.S.C. § 4(c)(8))
and section 225.23(a) of the Board's Regulation Y
(12 C.F.R. § 225.23(a)) to retain 99.8 percent and
acquire the remaining 0.2 percent of the shares of
MTech, Dallas, Texas, a company engaged in data
processing activities. Upon consummation of this proposal, Applicant would own 100 percent of the shares
of MTech. 1 MTech is currently engaged in the provision of data processing services to approximately 700
financial institutions. These services include the processing of financial, banking and economic data, the
transmission of such data to and from such financial
insitutions, and the provision of data processing facilities. In addition, MTech is engaged in the provision of
electronic funds transfer services to financial insitutions as the operator of the " M P A C T " network of
automated teller machines and point-of-sale terminals;
MTech provides the necessary data processing and
data transmission services, facilities and data bases to
the various financial institutions that participate in the
MPACT network. MTech also provides data processing and data transmission services and facilities for
certain types of economic data for nonfinancial institutions. Such activities have been determined by the
Board to be closely related to banking (12 C.F.R.
§ 225.25(b)(7)). 2 MTech operates data processing centers in 15 Texas cities, and in Tulsa, Oklahoma; New
York, New York; Boston, Massachusetts; Alexandria,
1. MTech, formerly known as Affiliated Computer Systems, Inc.,
was originally established by one of Applicant's subsidiary banks in
1975 as an operating subsidiary. In 1978, Applicant directly acquired
99.8 percent of MTech's shares, and the remaining 0.2 percent of
MTech's shares were acquired by five of Applicant's subsidiary
banks.
2. In accordance with the requirements of Regulation Y, Applicant
has indicated that, with respect to its data processing activities, all the
data to be processed or furnished are financial, banking, or economic,
and all services are provided pursuant to written agreements that so
describe and limit the services. The facilities are designed, marketed,
and operated for the processing and transmission of such data, and
hardware is provided only in conjunction with software designed and
marketed for the processing and transmission of such data, and any
general purpose hardware does not constitute more than 30 percent of
the cost of any packaged offering.
655
Virginia; and Clarksburg, West Virginia. Applicant
plans to expand its activities in the future throughout
the United States.
Notice of the application, affording interested persons an opportunity to submit comments on the public
interest factors, has been duly published (50 Federal
Register 10,110 (1985)). 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 largest commercial banking organization in Texas, controls 67 subsidiary banks with total
domestic deposits of $16.1 billion. 3 By this application, Applicant seeks Board approval to retain the
shares of MTech, originally held by Applicant under
the authority of section 4(c)(5) of the Act on the basis
that MTech was a bank service corporation. Because
the activities of MTech currently consist of providing
data processing services to nondepository institutions
as well as to financial insitutions, Applicant may not
continue to hold MTech pursuant to section 4(c)(5) of
the Act (12 U.S.C. § 1843(c)(5)) and the Board's Regulation Y (12 C.F.R. § 225.22(c)(4)).
Section 4(c)(8) of the Act provides that the Board
may approve a bank holding company's application to
acquire a nonbanking company or engage in a nonbanking activity only after the Board has determined
that performance of the proposed activity by a nonbanking subsidiary of a bank holding company can
reasonably be expected to provide 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. In acting on
an application under section 4(c)(8) of the Act and
Regulation Y to engage in activities previously commenced in a situation where the required prior Board
approval was not obtained, the Board applies the same
standards that it would apply to an application to
commence such activities initially. In analyzing such
an application, the Board considers the competitive
effects of such a proposal at the time of the commencement of the activities.
In this case, some of the activities were commenced
by MTech on a de novo basis, while others were
commenced by MTech through acquisitions of going
concerns. Because de novo expansion provides an
additional source of competition, the Board views
such expansion as being procompetitive. With regard
to the acquisitions of going concerns, it is the Board's
view that, due to the limited scope of the operations of
each of the firms acquired, the geographic distribution
3. Deposit data are as of March 31, 1985.
656
Federal Reserve Bulletin • August 1985
of their operations, and the large number of competitors in the data processing field, these acquisitions did
not have a significant effect on competition in any
relevant area.
In acting on this application, the Board has considered the fact that Applicant failed to secure the
B o a r d ' s approval before engaging in certain data processing activities for nondepository institutions through
MTech. After reviewing the relevant facts, the Board
concludes that this failure was inadvertent, and, in
view of certain a s s u r a n c e s provided by Applicant, the
Board has determined that it should not be regarded as
reflecting so adversely on the management of Applicant as to warrant denial of the application.
Retention of M T e c h by Applicant may be expected
to result in public benefits because MTech will continue to provide its c u s t o m e r s with an additional source
of data processing services. Further, there is no evidence in the record to indicate that the retention of
MTech would result in any conflicts of interests,
unsound banking practices, or other adverse effects.
Based upon the foregoing and certain commitments
by Applicant that are reflected in the record, the Board
has determined that the balance of the public interest
factors it is required to consider under section 4(c)(8)
of the Act is favorable. Accordingly, the application is
hereby approved. This determination is subject to all
of the conditions set forth in Regulation Y, including
those contained in sections 225.4(d) and 225.23(b), and
to the B o a r d ' s authority to require such modification
or termination of the activities of a holding c o m p a n y or
any of its subsidiaries as the Board finds necessary to
assure compliance with the provisions and purposes of
the Act, and the B o a r d ' s regulations and orders issued
thereunder, or to prevent evasion thereof.
By order of the Board of Governors, effective
June 5, 1985.
Voting for this action: Vice Chairman Martin and Governors Partee, Gramley, and Seger. Absent and not voting:
Chairman Volcker and Governors Wallich and Rice.
section 4(c)(8) of the Act, 12 U . S . C . § 1843(c)(8), and
section 225.23 of the B o a r d ' s Regulation Y, 12 C . F . R .
§ 225.23, to acquire 100 percent of the voting shares of
Altman & B r o w n , Inc., Albany, N e w York ( " C o m p a ny").
Notice of the application, affording interested persons an opportunity to submit c o m m e n t s on the proposal, has been duly published, 50 Federal
Register
8396 (1985). T h e time for filing c o m m e n t s has expired
and the Board has considered the application and all
comments received in light of the public interest
factors set forth in section 4(c)(8) of the Act. 1
Norstar, a bank holding c o m p a n y by virtue of its
ownership of commercial b a n k s in N e w York and
Maine, has total consolidated assets of $7.2 billion. 2
Norstar also engages in certain nonbanking activities,
including discount brokerage, credit-related insurance
activities, and mortgage banking activities.
N o r s t a r proposes to acquire C o m p a n y , an employee
benefits consulting firm that provides a full range of
services with regard to employee benefits plans. Comp a n y ' s activities can be divided into four basic types of
activities:
1. Plan Design—designing
employee benefit plans,
including determining actuarial funding levels and
cost estimates;
2. Plan Implementation—providing
assistance in
implementing plans, including assistance in the
preparation of plan d o c u m e n t s and the implementation of employee benefit administration systems;
3. Administrative
Services—providing
administrative services with respect to plans, including recordkeeping services, calculating and certifying employee benefits, preparing periodic actuarial and other
reports and government filings pursuant to E R I S A ,
and providing information to a client's legal counsel
in labor relations and negotiations;
4. Employee
Communications—developing
employee communication programs with respect to
plans for the benefit of the client.
Order Approving an Application to Provide
Employee Benefits Consulting
Services
All of these activities involve the use of actuarial
skills to some degree since approximately 80 percent
of C o m p a n y ' s plans u n d e r ongoing supervision are
"defined benefit p l a n s " b a s e d upon p a y m e n t of a fixed
benefit determined by an actuarially based formula in
the plan instrument, as distinguished f r o m " d e f i n e d
contribution p l a n s . "
In order to approve an application under section
4(c)(8) of the Act, the B o a r d must determine that the
Norstar
holding
Holding
et seq.,
1. Mellon Bank, N.A., Pittsburgh, Pennsylvania,
favor of approval of this application.
2. Data are as of December 31, 1984.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the
Board
Norstar Bancorp, Inc.
Albany, New York
B a n c o r p , Inc., Albany, N e w York, a bank
c o m p a n y within the meaning of the Bank
C o m p a n y A c t ( " A c t " ) , 12 U . S . C . § 1841
has applied for the B o a r d ' s approval under
commented in
Legal Developments
proposed activity is " s o closely related to banking or
managing or controlling banks as to be a proper
incident thereto . . . " 12 U.S.C. § 1843(c)(8). Norstar
submits that all of the proposed activities are included
in the trust company or financial or investment advisory service activities permissible under Regulation Y.
12 C.F.R. § 225.25(b)(3) and (4). While certain of the
activities of employee benefits consulting as conducted by Company, particularly in the area of plan
administration, are conducted by trust companies or
trust departments of banks in their capacities as trustees or custodians of employee benefits plans and
investment managers of plan assets, and while certain
of Company's employee benefits consulting activities
are functionally equivalent to general trust activities of
banks and trust companies, the record does not indicate that the complete range of employee benefits
consulting services are generally conducted by trust
companies or authorized by the Board as permissible
as trust company activities under Regulation Y. Similarly, while the Board believes that employee benefits
consulting is essentially a financial planning activity
involving the preparation and conveyance to a client of
financial information and while the Board has previously determined the preparation and conveyance of
financial data to be closely related to banking and
permissible under Regulation Y in the areas of investment advisory services, data processing services and
courier services, 3 the record does not indicate that
employee benefits consulting is wholly encompassed
within any or all such activities. Thus, the Board does
not agree with Norstar's contention that all of the
proposed activities are currently authorized for bank
holding companies under existing provisions of Regulation Y. The Board must determine whether Company's activities are closely related to banking under
section 4(c)(8).
Since section 4(c)(8) does not specify any additional
criteria or factors on which the Board should base its
finding whether an activity is closely related to banking, the Board has generally relied on the minimum
guidelines established by the federal courts. 4 Under
these guidelines, an activity may be found to be
closely related to banking if it is demonstrated that
banks generally have in fact provided the proposed
3. The Board does not believe that employee benefits consulting
activities as conducted by Company will involve Norstar in the
detailed operational aspects of a commercial enterprise that the Board
sought to avoid in declining to permit bank holding companies to
engage in management consulting activities. See section 225.25(b)(4)
n.2 of Regulation Y, 12 C.F.R. 225.25(b)(4) n.2.
4. See National Courier Association v. Board of Governors, 516
F.2d 1229 (D.C. Cir. 1975). Accord, Securities Industry Ass'n v.
Board of Governors,
U.S.
, 104, S. Ct. 3003, 3008
(1984), Association of Data Processing Service Organizations, Inc. v.
Board of Governors, 745 F.2d 677 (D.C. Cir. 1984).
657
service; that banks generally provide services that are
operationally or functionally so similar to the proposed
services as to equip them particularly well to provide
the proposed service; or that banks generally provide
services that are so integrally related to the proposed
service as to require their provision in a specialized
form. The courts have made it clear, however, that
these criteria are not exhaustive and that the Board
has discretion to consider other criteria which provide
a reasonable basis for a finding that a particular
nonbanking activity has a close relationship to banking. 5
Applying these criteria, the Board believes that
banks and trust companies generally provide trust
services that are operationally or functionally related
to many of Company's activities, including activities
in each of Company's four basic areas of plan design,
plan implementation, plan administration and employee communications. Design activity for employee
benefits plans is operationally and functionally similar
to the design and establishment of trusts by banks and
trust companies. Bank trust departments routinely
assist trust customers to determine their objectives,
funding levels and costs, and they provide ongoing
evaluations regarding whether the needs of the trust
donor and beneficiary are being met. Banks also
design a variety of savings and individual retirement
account plans that share similarities with defined contribution employee benefits plans.
With respect to the plan implementation and administration components of employee benefits consulting,
banks and trust companies prepare trust documents
and establish administrative systems for such trusts.
In addition to performing functionally and operationally related activities, banks and trust companies also
serve as custodians or trustees and act as investment
managers for employee benefits plans. In these capacities, they may perform recordkeeping, reporting, and
payment services for such plans, including the filing of
annual reports with the Internal Revenue Service and
other regulatory agencies.
While certain aspects of employee communications
are unique to benefit plans, banks and trust companies
have expertise in maintaining customer accounts and
preparing statements for individual customers. Banks
also have considerable experience designing informational materials for customers that explain the customer benefits of bank services and products. In summary, many of the proposed employee benefits consulting
activities are either already specifically engaged in by
banks and trust companies or are functionally related
5. Securities Industry Ass'n, supra; Board of Governors v. Investment Company Institute, 450 U.S. 46, 56-58 nn. 20-23 (1981);
Association of Data Processing Organizations,
supra.
658
Federal Reserve Bulletin • August 1985
to activities in which banks and trust companies
regularly engage.
The Board recognizes, however, the actuarial aspect of C o m p a n y ' s employee benefit consulting activities not generally included in trust c o m p a n y or bank
activities. While actuarial services are an important
element of N o r s t a r ' s p r o p o s e d activities, such services are limited in scope and purpose in that they are
conducted primarily as a means to ensure adequate
funding of defined benefits plans. Moreover, in this
case they would be p e r f o r m e d solely as a means of
enabling N o r s t a r to provide a full range of benefits
planning activities for its clients. C o m p a n y ' s actuarial
services would not be conducted as an independent
activity but only as a necessary and integrally related
component of employee benefits consulting. 6
In Association
of Data Processing
Organizations,
Inc. v. Board of Governors, 745 F.2d 277 (D.C. Cir.
1984), the court of appeals held that the Board may
permit those activities that are " a part of " the overall
permissible activity where, as here, " i n both market
contemplation and technological reality, the service is
a unitary o n e . " (Id. at 694).
The Board believes that employee benefits consulting as conducted by C o m p a n y is functionally and
operationally related to banking and trust c o m p a n y
activities. M o r e o v e r , employee benefits consulting
involves the preparation and conveyance to a client of
financial data determined by the Board to be permissible in the context of investment advisory, data processing and courier service activities. Therefore, Norstar's proposed activities are permissible as closely
related to banking.
Before approving a bank holding c o m p a n y ' s application to engage in an activity that the Board determines is closely related to banking, the Board must
also find that consummation of the proposal can
reasonably be expected to produce benefits to the
public that outweigh possible adverse effects. With
respect to the p r o p o s e d employee benefits consulting
activities of N o r s t a r , it appears from the record that
authorizing the activity would enhance competition
and provide greater convenience and increased effi-
6. As part of its acquisition, Norstar proposes to assist firms in IRS
audits of plans; to inform clients of development in the field of
employee benefit programs through newsletters, other correspondence, and participation in seminars, public programs and other
forums relating to such developments; and to engage in professional
actuarial activities and other activities incidental to the actuarial
profession. The activities are generally related to the type of actuarial
activities performed for purposes of engaging in employee benefits
consulting and they do not generate any significant income. Such
activities, therefore, are permissible as incidental to Norstar's approved activities. Norstar also proposes to provide expert actuarial
opinions of a general nature for purposes such as divorce actions and
personal injury litigation. The Board believes such activities are
beyond the scope of incidental activities and are not permissible.
ciencies, without resulting in any adverse consequences.
As a matter of increased convenience, clients will
have the option to obtain a complete package of
employee benefits consulting services f r o m a single
company, including those investment and fund management services that can be provided by other subsidiaries of N o r s t a r . Such a system of vertical integration
is likely to make C o m p a n y a m o r e efficient competitor.
Findings of greater convenience and increased competition may also be based on the increase in the number
of companies that can conduct all aspects of employee
benefits consulting.
There is no evidence in the record to indicate that
N o r s t a r ' s engaging in the p r o p o s e d activity would lead
to any undue concentration of resources, decreased or
unfair competition, u n s o u n d banking practices, or
other adverse effects. Clients will have the option to
use any c o m p o n e n t of N o r s t a r ' s employee benefits
consulting services individually as well as the entire
package of services, and N o r s t a r has specifically committed to avoid tying any employee benefits consulting
service to purchase of the entire employee benefits
package or to any other service offered by Norstar or
its subsidiaries.
Based upon the foregoing and all the facts of record,
the Board has determined that the balance of public
interest factors it is required to consider under section
4(c)(8) is favorable. Accordingly, the application is
hereby approved. This determination is subject to the
conditions set forth in sections 225.4(d) and
225.23(b)(3) of the B o a r d ' s Regulation Y, 12 C . F . R .
§§ 225.4(d) and 225.23(b)(3). The approval is also
subject to the B o a r d ' s authority to require modification or termination of the activities of the holding
company or any of its subsidiaries as the Board finds
necessary to assure compliance with the provisions
and purposes of the Act and the B o a r d ' s regulations
and orders issued thereunder, or to prevent evasion
thereof.
This transaction shall not be c o n s u m m a t e d 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 F e d e r a l R e s e r v e Bank of N e w
York, pursuant to delegated authority.
By order of the Board of Governors, effective
June 19, 1985.
Voting for this action: Governors Partee, Gramley, and
Seger. Voting against this action: Governor Rice. Absent and
not voting: Chairman Volcker and Governors Martin and
Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the
Board
Legal Developments
Security Pacific Corporation
Los Angeles, California
Order Approving Acquisition
Credit Corporation
of Shares in Century
Security Pacific Corporation, Los Angeles, California,
a bank holding company within the meaning of the
Bank Holding Company Act ( " A c t " ) , has applied for
the Board's approval pursuant to section 4(c)(8) of the
Act (12 U.S.C. § 1843(c)(8)) and section 225.23(a)(1)
of
the
Board's
Regulation
Y
(12 C.F.R.
§ 225.23(a)(1)), to acquire 80 percent of the voting
shares of Century Credit Corporation, Linthicum,
Maryland ( " C o m p a n y " ) , a de novo joint venture. The
remaining 20 percent of Company's voting shares
would be acquired by Frederick Weisman Company,
Glen Burnie, Maryland ("Weisman").
Company proposes to engage in motor vehicle consumer finance and leasing, motor vehicle inventory
finance, and incidental dealer-related commercial
lending. These activities have been determined by the
Board to be closely related to banking and permissible
for bank holding companies (12 C.F.R. § 225.25(b)(1)
and (5)).
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published (50 Federal Register 8675 (1985)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the public interest factors set forth in
section 4(c)(8) of the Act.
Applicant is the ninth largest banking organization
in the United States, controlling consolidated assets of
$45.2 billion. 1 Applicant's primary bank subsidiary,
Security Pacific National Bank, is the second largest
bank in California with total domestic deposits of $23.7
billion. Applicant is also engaged through nonbank
subsidiaries in various nonbanking activities, including
motor vehicle consumer financing and leasing and
dealer inventory financing. Weisman is principally
engaged, through its wholly owned subsidiary, MidAtlantic Toyota Distributors, Inc., in the distribution
of Toyota motor vehicles and products to independent
Toyota dealers in the states of Delaware, Maryland,
Pennsylvania, Virginia, and West Virginia and the
District of Columbia. Weisman does not engage, either
directly or through a subsidiary, in any financing or
leasing activities.
Under the proposed joint venture arrangement, Applicant and Weisman would engage de novo in pur-
chasing and servicing conditional sales contracts and
lease agreements originated by the Toyota dealers
served by Weisman and in providing inventory financing and incidental capital loans to such dealers. Company would engage in these activities from its office in
Linthicum, Maryland, and would serve the states of
Delaware, Maryland, Pennsylvania, Virginia, and
West Virginia, and the District of Columbia, the same
jurisdictions in which the dealers served by Weisman
are located.
This proposal has been structured as a joint venture
to take advantage of the complementary resources and
experience of Applicant and Weisman. While Applicant's subsidiary, Security Pacific Credit Corporation
( " S P C C " ) , currently competes in Company's proposed product markets through an office located in
Greenbelt, Maryland, this office of SPCC has had
limited success in penetrating these markets in Company's service area because it does not have access to
an established customer base. Through its relationship
with approximately 100 Toyota dealers, Weisman will
provide a customer base for Company, as well as its
extensive experience in and understanding of the
distribution of motor vehicles.
Because this proposal involves the use of a joint
venture between a bank holding company and a nonbanking company, the Board has analyzed the proposal with respect to its effects on existing and potential
competition between Applicant and Weisman in the
relevant commercial lending and consumer financing
and leasing markets. 2 Applicant currently engages,
through SPCC, in the proposed activities in the midAtlantic area. However, SPCC's sole office in this area
holds motor vehicle dealer finance receivables of $1.5
million, and motor vehicle sale contracts and leases of
$20.2 million, 3 which represents approximately 0.1
percent of the new motor vehicle registrations in 1983
in the area to be served by Company. Weisman does
not engage in any of the proposed activities. Consequently, the commencement of the proposed joint
venture would have no effect on existing competition
in any relevant market.
With respect to potential competition, the fields of
motor vehicle financing and leasing and dealer financing in the mid-Atlantic area are unconcentrated, and
2. The Board has previously indicated its concerns regarding the
potential for undue concentration of resources that could result from
the combination in a joint venture of banking and nonbanking institutions. The Board is also concerned that joint ventures not lead to a
matrix of relationships that could undermine the legally mandated
separation of banking and commerce. See, e.g.,
Amsterdam-Rotterdam
Bank,
sche
Bank
National
1. Banking data are as of March 31, 1985.
659
N.V.,
AG,
7 0 F E D E R A L RESERVE B U L L E T I N 8 3 5 ( 1 9 8 4 ) ;
6 7 F E D E R A L RESERVE B U L L E T I N 4 4 9 ( 1 9 8 1 ) ;
Corporation,
Deut-
Maryland
6 5 F E D E R A L RESERVE B U L L E T I N 2 7 1 ( 1 9 7 9 ) .
3. As of November 30, 1984.
660
Federal Reserve Bulletin • August 1985
have numerous participants significantly larger than
SPCC. Furthermore, the Board does not consider
Weisman to be a likely independent entrant into Company's proposed fields of activity, because Weisman
has neither the experience as a lending institution nor
the capital to engage independently in financing and
leasing activities. Accordingly, the Board concludes
that consummation of the proposed joint venture
would have little effect on potential competition in the
relevant markets.
Furthermore, the Board is satisfied that approval of
this application does not inherently present the opportunity or potential for conflicts of interest or other
anticompetitive practices. In reaching this conclusion,
the Board stresses that the proposed activities are
limited in scope and that there are no other joint
ventures between Applicant and Weisman. Additionally, the subject of this joint venture represents a
relatively minor portion of the business of each joint
venturer. Consequently, the Board has no reason to
believe that Applicant or Security Pacific National
Bank would favor Weisman, or the dealers served by
Weisman, in the provision of credit or other services.
Consummation of the proposal may be expected to
result in public benefits inasmuch as the joint venture
would enable Applicant to provide an additional
source of credit to the customers of the Toyota dealers
served by Weisman. The financial and managerial
resources of Applicant, Weisman, and Company are
considered satisfactory, and there is no evidence in the
record to indicate that consummation of the proposal
would result in undue concentration of resources,
unsound banking practices, or other adverse effects on
the public interest.
Based on the foregoing and other facts of record, the
Board concludes that the balance of the public interest
factors it must consider under section 4(c)(8) of the
Act favors approval of the application. Accordingly,
the Board has determined that the application should
be and hereby is approved. This determination is
subject to all the conditions set forth in Regulation Y,
including those in sections 225.4(d) and 225.23(b)
(12 C.F.R. §§ 225.4(d) and 225.23(b)(3)), 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 consummated 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, acting pursuant to delegated authority.
By order of the Board of Governors, effective
June 3, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Gramley, and Seger. Absent and not voting:
Governors Wallich and Rice.
JAMES
[SEAL]
Associate
Secretary
MCAFEE
of the Board
S e c u r i t y Pacific C o r p o r a t i o n
Los Angeles, California
Order Approving an Application to Engage in
Consumer Finance Activities and Certain Insurance
Activities
Security Pacific Corporation, Los Angeles, California,
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 4(c)(8) of the Act,
12 U.S.C. § 1843(c)(8), and section 225.23(a)(1) of the
Board's Regulation Y, 12 C.F.R. § 225.23(a)(1), to
acquire through its wholly owned subsidiary, Security
Pacific Housing Services, Inc. ( " S P Housing Services"), San Diego, California, substantially all of the
manufactured housing, mobile home, and recreational
vehicle retail finance assets of General Electric Credit
Corporation ("General Electric"), Stamford, Connecticut, including retail accounts, servicing agreements, related equipment, and real property leases for
office space in Anaheim and San Jose, California, and
Reno, Nevada. Thereafter, SP Housing Services will
continue to engage in conditional sales contract finance with respect to mobile homes and manufactured
housing in the states of California, Idaho, Montana,
Nevada, Oregon and Washington, the servicing of
loans and other extensions of credit and the sale of
credit life insurance in these same states. In addition,
Security Pacific has applied under section 4(c)(8) of
the Act to expand the activities of its subsidiary,
General Fidelity Life Insurance Company ("General
Fidelity"), Richmond, Virginia, to engage in the states
of Montana and Nevada in the activity of underwriting
and reinsuring credit life insurance for extensions of
credit made by Security Pacific and its affiliates. The
Board has previously determined that the activities to
be engaged in by SP Housing Services and General
Fidelity are closely related to banking and permissible for bank holding companies.
12 C.F.R.
§§ 225.25(b)(1), (8)(i)(A) and (9).
Applicant also proposes to engage through SP Housing Services in the activity of acting as agent or broker
Legal Developments
for the sale of credit property insurance for extensions
of credit made or acquired by Applicant and its
affiliates as limited by section 601(B) of Title VI of the
Garn-St Germain Depository Institutions Act of 1982
( " G a r n - S t Germain A c t " ) , 12 U.S.C. § 1843(c)(8)(B).
Section 601(B) provides an exception to the general
prohibition in the Act against insurance agency and
underwriting activities, and allows a bank holding
company's finance company subsidiary to sell insurance (within certain dollar limitations) limited to assuring payment of the outstanding balance on an extension of credit in the event of loss or damage to any
property used as collateral on such extension of credit.
The Board concludes that Security Pacific, through SP
Housing Services, may engage in the activity of acting
as an agent or broker for the sale of credit property
insurance to the extent that it complies with all of the
requirements of section 601(B) of the Garn-St Germain Act.
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been duly published, 50 Federal Register
10,319 (1985). The time for filing comments has expired and the Board has considered the application and
all comments received in light of the public interest
factors set forth in section 4(c)(8) of the Act.
In addition to determining whether an activity is
closely related to banking, the Board must consider
whether Applicant's performance of the proposed
activities can "reasonably be expected to produce
benefits to the public, such as greater convenience,
increased competition, or gains in efficiency, that
outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking
practices." 12 U.S.C. § 1843(c)(8). This consideration
also requires an evaluation of the financial and managerial aspects associated with the proposal. 12 C.F.R.
§ 225.24.
Applicant is the ninth largest banking organization
in the United States, controlling consolidated assets of
$45.2 billion. 1 Applicant's primary bank subsidiary,
Security Pacific National Bank, Los Angeles, California, is the second largest bank in California with total
domestic deposits of $23.7 billion. Applicant also is
engaged through nonbank subsidiaries in various nonbanking activities, including consumer and commercial finance, leasing, trust services, mortgage banking
and industrial banking.
With respect to the market for manufactured housing, mobile home and recreational vehicle financing,
1. Banking data are as of March 31, 1985.
661
consummation of this proposal would eliminate some
existing competition. However, the respective market
shares for such financing controlled by Applicant and
General Electric are quite small in the geographic
markets where Applicant and General Electric both
compete, 2 and General Electric has not been a vigorous competitor in this market since 1982. Accordingly,
the Board concludes that consummation of this proposal would not have a significant adverse effect on
existing competition in any relevant market.
Financial and managerial considerations are consistent with approval of this proposal. Moreover, there is
no evidence in the record that consummation of this
proposal would result in adverse effects, such as
unsound banking practices, unfair competition, conflicts of interest, or an undue concentration of resources.
With respect to the public benefits associated with
Applicant's proposal to underwrite and reinsure credit
life insurance, the record indicates that, upon consummation of this proposal, Applicant would reduce the
premium rates for such insurance in Montana and
Nevada. Thus, the Board concludes that consummation of this aspect of the proposal would benefit
consumers in these states. 3 As for the public benefits
associated with the other aspects of this proposal,
consummation would result in the preservation and
expansion of the consumer finance and credit-related
insurance services previously provided by General
Electric.
Based upon the foregoing and the facts of record,
the Board concludes that the balance of public interest
factors it must consider under section 4(c)(8) of the
Act is favorable. Accordingly, the application should
be and hereby is approved. This determination is
subject to all of the conditions set forth in the Board's
Regulation Y, including those in sections 225.4(d) and
225.23(b), and 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 proposed activities shall be commenced not
later than three months after the effective date of this
Order, unless such period is extended by the Board or
by the Federal Reserve Bank of San Francisco, acting
pursuant to delegated authority.
2. These markets are a region comprised of the states of California
and Nevada, and a region comprised of the states of Idaho, Montana,
Oregon and Washington.
3. See 12 C.F.R. § 225.25(b)(9) n. 7.
662
Federal Reserve Bulletin • August 1985
By order of the Board of Governors, effective
June 4, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Gramley, and Seger. Absent and not voting:
Governors Wallich and Rice.
JAMES M C A F E E
Associate
[SEAL]
Secretary of the Board
U n i t e d City C o r p o r a t i o n
Piano, Texas
Order Approving the Provision of Consumer
Financial Counseling Services
United City Corporation, Piano, Texas, a bank holding
company within the meaning of the Bank Holding
Company Act ( " A c t " ) , has applied for the Board's
approval pursuant to section 4(c)(8) of the Act
(12 U.S.C. § 1843(c)(8)) and section 225.23(a)(1)) of
the Board's Regulation Y (12 C.F.R. § 225.23(a)(1)),
to engage de novo in providing consumer financial
counseling services. Applicant proposes to offer such
services, which include advice to consumers on debt
consolidation, applying for a mortgage, insurance and
portfolio management, and investment planning,
through a division of Applicant.
The Board has found this activity to be closely
related to banking and permissible for bank holding
companies on two occasions. 1 Furthermore, the Board
has proposed to add consumer financial counseling to
its list of permissible nonbanking activities under
section 225.25 of Regulation Y (49 Federal Register
9215 (1984)).
Notice of the application, affording opportunity for
interested persons to comment, has been duly published (50 Federal Register 12,405 (1985)). 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 4(c)(8) of the Act
(12 U.S.C. § 1843(c)(8)).
Applicant is the 51st largest commercial banking
organization in Texas, with consolidated assets of
$202.9 million. 2 Applicant's four subsidiary banks
have total deposits of $174.3 million, representing
approximately 0.1 percent of the total deposits in
commercial banks in the state. 3
In approving Citicorp's application to engage in the
provision of financial management courses and finan1. Citicorp (Citicorp Person-to-Person
Financial Centers), 65 FEDERAL RESERVE BULLETIN 265 (1979), and Maryland National
Corporation,
cial counseling, the Board indicated its concern that
the offering of such services by bank holding companies could result in the misuse of confidential customer
information and in certain conflicts of interests between the bank holding company's role as a source of
objective financial advice and its interest in promoting
the products of its affiliates. 4 The Board's decision in
Citicorp was conditioned on Citicorp's commitments
to maintain a strict separation between its educational
and promotional material and activities and to advise
each customer that he is not required to purchase any
services from Citicorp affiliates. In addition, Citicorp
committed that any confidential information obtained
by it or any of its subsidiaries in connection with its
courses would be obtained only with the customer's
consent and would not be made available to any other
Citicorp affiliate or any third party for any purpose. 5
The Board believes that these commitments are essential to ensure that the advice rendered will be impartial
and to prevent misuse by Applicant of confidential
customer information, and Applicant has made similar
commitments with respect to this application.
Applicant currently offers discount brokerage services through the same legal entity (the holding company) as that from which it proposes to offer consumer
financial counseling. Section 225.25(b)(15) of Regulation Y (12 C.F.R. § 225.25(b)(15)) expressly limits the
brokerage services permissible for a bank holding
company to "buying and selling securities solely as
agent for the account of c u s t o m e r s " and provides that
the permissible brokerage activities do not include
"investment advice or research services." Applicant
has made the following commitments designed to
separate its discount brokerage activities from the
proposed financial counseling activities:
(1) Applicant will make only generic recommendations as to general investment products and will not
offer advice as to specific products or investments;
(2) the two services will be provided by completely
different personnel;
(3) the brokerage services will be physically separated from the financial counseling services;
(4) Applicant will use separate and distinct marketing programs for its financial counseling and brokerage services; and
(5) Applicant's consumer financial counseling customers will not be solicited by Applicant to use
Applicant's brokerage services.
The Board has considered these commitments and
has determined that they are sufficient to maintain the
separation between the two activities required by
section 225.25(b)(15) of Regulation Y. Thus, the Board
71 FEDERAL RESERVE BULLETIN 2 5 3 ( 1 9 8 5 ) .
2. As of December 31, 1984. All financial data reflect Applicant's
recent acquisition of First National Bank in DeSoto, D e S o t o , Texas.
3. Deposit data are as of June 30, 1984.
4. Citicorp, supra note 1, at 266.
5. The Board also imposed these conditions in Maryland
Corporation,
71 FEDERAL RESERVE BULLETIN 2 5 3 ( 1 9 8 5 ) .
National
Legal Developments
has decided that it will not require Applicant to offer
the services through separate legal entities. This determination is based on the specific facts and circumstances of this case, including the size and physical
facilities of Applicant, and circumstances in future
cases might require that the activities be conducted
through separate subsidiaries.
The Board finds no evidence that the provision of
financial counseling services by Applicant would result in any conflicts of interests, unfair competition,
unsafe and unsound banking practices, or other adverse effects. Because Applicant would offer the proposed services de novo, consummation of the proposal
may reasonably be expected to result in increased
competition.
Based upon the foregoing and all of the facts of
record, the Board has determined that the balance of
public interest factors it is required to consider under
section 4(c)(8) of the Act is favorable and consistent
with approval of this application. Accordingly, the
Board has determined that the application should be
and hereby is approved. This determination is subject
to the conditions set forth in this Order as well as to all
of the conditions set forth in Regulation Y, including
those in sections 225.4(d) and 225.23(b)(3) (12 C.F.R.
§§ 225.4(d) and 225.23(b)(3)). The Board's approval is
also subject 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 consummated 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 Dallas,
acting pursuant to delegated authority.
By order of the Board of Governors, effective
June 24, 1985.
Voting for this action: Governors Partee, Rice, Gramley,
and Seger. Absent and not voting: Chairman Volcker and
Governors Martin and Wallich.
JAMES
[SEAL]
Associate
Concurring Statement
Secretary
of Governor
MCAFEE
of the Board
Rice
I agree with the Board that Applicant should be
permitted to engage in the proposed financial counseling activities.
I believe that the Applicant's commitments not to
offer advice as to the purchase of specific securities, to
663
provide the proposed services and discount brokerage
services through completely different personnel and in
different physical locations, to use distinct marketing
programs for the two services, and not to solicit its
financial counseling customers to use its brokerage
services, offer a measure of separation of the discount
brokerage activities from the financial counseling activities. In my opinion, however, these commitments
do not meet the requirement in section 225.25(b)(15) of
Regulation Y that discount brokerage activities not
include investment advice or research services. I
would therefore condition approval of this proposal on
the placement of the financial counseling activities and
the discount brokerage activity in separate legal entities.
June 24, 1985
Orders Issued Under Sections 3 and 4 of Bank
Holding Company Act
M a r s h a l l & Ilsley C o r p o r a t i o n
Milwaukee, Wisconsin
Order Approving Acquisition of a Bank Holding
Company and of Companies Engaged in Leasing,
Trust Services, and Investment Advisory
Services
Marshall & Ilsley Corporation, Milwaukee, Wisconsin, 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(a)(3) of the Act (12 U.S.C.
§ 1842(a)(3)) to acquire all of the outstanding shares of
Heritage Wisconsin Corporation, Wauwatosa, Wisconsin ("Heritage"), also a bank holding company,
and thereby indirectly acquire Heritage's three bank
subsidiaries: Heritage Bank, Wauwatosa, Wisconsin;
Heritage Bank Beloit Mall, Beloit, Wisconsin; and
Heritage Bank West Bend, West Bend, Wisconsin.
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 225.23(a) of the Board's
Regulation Y (12 C.F.R. § 221.23(a)) to acquire indirectly Heritage's three nonbank subsidiaries: Heritage
Leasing Corporation, Milwaukee, Wisconsin ("Heritage Leasing"); Heritage Trust Company, Milwaukee,
Wisconsin ("Heritage T r u s t " ) ; and Heritage Investment Advisors, Inc., Milwaukee, Wisconsin ("Heritage Investment Advisors"). These subsidiaries engage in leasing, trust, and investment advisory
activities. The Board has previously determined that
these activities are closely related to banking and
permissible for bank holding companies. 12 C.F.R.
§ 225.25(b)(3)-(5).
664
Federal Reserve Bulletin • August 1985
Notice of the applications, affording interested persons an opportunity to submit comments, has been
given in accordance with sections 3 and 4 of the Act,
12 U.S.C. §§ 1842 & 1843. 50 Federal Register 9906
(1985). 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.
Applicant is the second largest commercial banking
organization in Wisconsin and controls deposits of
$2.36 billion, representing 8.6 percent of the total
deposits in commercial banks in the state. 1 Heritage is
the eighth largest commercial banking organization in
the state and controls deposits of $470 million, representing 1.7 percent of the total deposits in commercial
banks in the state. Upon acquiring Heritage, Applicant
would control deposits of $2.83 billion, representing
10.3 percent of the total deposits in commercial banks
in the state, and would remain the second largest
banking organization in the state. Consummation of
this proposal would have no significant effect on the
concentration of banking resources in Wisconsin.
The bank subsidiaries of Applicant compete directly
with those of Heritage in the Milwaukee and West
Bend banking markets. 2 Applicant is the second largest commercial banking organization in the Milwaukee
banking market, controlling deposits of $1.36 billion,
representing 16.3 percent of the total deposits in
commercial banks in the market. Heritage is the fifth
largest commercial banking organization in the market, controlling deposits of $350.3 million, representing 4.2 percent of the total deposits in commercial
banks therein. Upon acquiring Heritage, Applicant
would control 20.5 percent of the total deposits in
commercial banks in the market.
The share of deposits held by the four largest
banking organizations in the Milwaukee banking market is 67.0 percent and would increase to 71.2 percent
upon consummation of this proposal. The market's
Herfindahl-Hirschman Index ( " H H I " ) is 1461 and
would increase by 137 points to 1598 upon consummation of the proposal. 3 Although the proposed acquisi-
1. Banking data are as of June 30, 1984, unless otherwise noted.
2. The Milwaukee banking market is coextensive with the Milwaukee RMA, which consists of Milwaukee, Ozaukee, and Waukesha
Counties and portions of Jefferson, Racine, Washington, and Walworth Counties, all in Wisconsin.
The West Bend banking market comprises the towns of Addison,
Barton, Errin, Hartford, Farmington, Kewaskum, Trenton, Wayne,
and West Bend in Washington County, Wisconsin.
3. Under the revised Department of Justice Merger Guidelines (49
Federal Register 26,823 (1984)), a market in which the post-merger
HHI is between 1000 and 1800 is considered moderately concentrated,
and the Department is likely to challenge a merger that increases the
tion would eliminate some existing competition between Applicant and Heritage in the Milwaukee
banking market, the market would not become highly
concentrated as a result of this transaction and 47
other banking organizations would continue to operate
in the market. On the basis of these and other facts of
record, the Board concludes that the effects of consummation of the proposal on existing competition in
the Milwaukee banking market would not be significantly adverse.
In the West Bend banking market, Applicant is the
largest commercial banking organization, with deposits of $96.5 million representing 30.3 percent of the
total deposits in commercial banks in the market.
Heritage is the fifth largest commercial banking organization in the market, controlling deposits of $17.5
million representing 5.5 percent of the market's commercial bank deposits. Upon acquiring Heritage, Applicant would control 35.8 percent of the total deposits
in commercial banks in the market.
The West Bend banking market is concentrated,
with the four largest commercial banking organizations controlling 87.4 percent of the market's commercial bank deposits. The H H I in the market is 2140 and
would increase by 333 points to 2473 upon consummation of this proposal, making the transaction one that
would be subject to challenge under the Department of
Justice Merger Guidelines. 4
While the proposed acquisition would eliminate
existing competition between Applicant and Heritage
in the West Bend market, the Board notes that 11
competitors, including two of the state's largest commercial banking organizations, would remain in the
market following consummation of this proposal. In
addition, the Board has concluded that the effect of
this proposal on existing competition is mitigated by
the extent of competition offered by thrift institutions
HHI by more than 100 points, unless other facts of record indicate that
the merger is not likely substantially to lessen competition. The
Department has informed the Board that a bank merger or acquisition
generally will not be challenged (in the absence of other factors
indicating an anticompetitive effect) unless the post-merger HHI is at
least 1800 and the merger increases the HHI by at least 200 points.
4. Under the Department of Justice Merger Guidelines, a market in
which the post-merger HHI is above 1800 is considered highly
concentrated. In such markets, the Department is likely to challenge a
merger that produces an increase in the HHI of 50 points or more
unless other facts of record indicate that the merger is not likely
substantially to lessen competition. Other factors include the post
merger HHI, the increase in the HHI, changing market conditions, the
financial condition of the firm to be acquired, ease of entry, nature of
the product, substitute products, similarities in firms that are subject
to the transaction and increased efficiencies that may result from the
transaction. The Department has not advised the Board of any
objection to this transaction.
Legal Developments
in the West Bend market. 5 Five thrift institutions in
the market hold total deposits of $134.7 million, representing 29.9 percent of the total deposits in the market.
Two of these institutions have located their home
offices within the West Bend market, and provide
consumer loans, N O W accounts and commercial real
estate loans. Moreover, one of the thrift institutions is
actively engaged in additional commercial lending. In
view of these facts, the Board considers the presence
of thrift institutions as a significant factor in assessing
the competitive effects of this proposal and has determined that consummation of the proposal is not likely
to have a significant adverse effect on existing competition in the West Bend banking market. 6
Heritage is represented in the Beloit-Janesville market, where Applicant does not currently compete. The
Board has examined the effect of the proposed acquisition upon probable future competition in that market
in light of the Board's proposed market extension
guidelines. 7 With a three-firm concentration ratio of
52.2 percent, the Beloit-Janesville market is not highly
concentrated, and the Board has concluded that consummation of this proposal would not have any significant adverse effects on probable future competition in
this market.
The financial and managerial resources and future
prospects of Applicant and Heritage are considered
satisfactory and consistent with approval of the application. Considerations related to the convenience and
needs of the communities to be served are also consistent with approval.
Applicant has also applied to acquire Heritage Leasing, Heritage Trust, and Heritage Investment Advisors. Heritage Leasing provides lease finance services, Heritage Trust provides trust services to
corporations and individuals, and Heritage Investment
Advisors provides portfolio investment advice to mu-
5. The Board has previously determined that thrift institutions have
become, or at least have the potential to become, major competitors of
banks. NCNB Corporation,
70 FEDERAL RESERVE BULLETIN 225
( 1 9 8 4 ) ; Sun Banks,
Inc., 6 9 FEDERAL RESERVE BULLETIN 9 3 4 ( 1 9 8 3 ) ;
Merchants
Bancorp,
Inc.,
6 9 FEDERAL RESERVE BULLETIN 8 6 5
(1983); First Tennessee
National
Corporation,
69 FEDERAL RESERVE
BULLETIN 2 9 8 ( 1 9 8 3 ) .
6. If 50 percent of the deposits held by thrift institutions were
included in the calculation of market concentration, the pre-acquisition four-firm concentration ratio would decrease to 72.1 percent and
the HHI would decrease to 1568. U p o n consummation of this proposal, the four-firm concentration ratio would increase to 76.7 percent
and the H H I would increase by 229 points to 1796. The resulting
market share of Applicant would decrease to 29.5 percent.
7. "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 A c t , " 47 Federal
Register 9017 (1982). While the proposed policy statement has not
been adopted by the Board, the Board is using the policy Guidelines as
part of its analysis of the effect of a proposal on probable future
competition.
665
tual funds and individuals. All of these activities are
conducted in Milwaukee, Wisconsin.
Applicant is also engaged through various nonbanking subsidiaries in lease finance, trust, and investment
advisory services in Milwaukee, Wisconsin. Thus consummation of this proposal would eliminate existing
competition between Applicant and Heritage in the
provision of such services. However, the respective
market shares for these services held by Applicant and
Heritage are quite small in the Milwaukee market and
numerous other providers of these services would
remain in the market upon consummation of this
proposal. Accordingly, the Board concludes that consummation of this proposal would not have a significant adverse effect on existing competition in any
relevant product or geographic market.
There is no evidence in the record to indicate that
Applicant's acquisition of Heritage's nonbanking subsidiaries would result in decreased or unfair competition, undue concentration of resources, conflicts of
interests, unsound banking practices, or other adverse
effects. Accordingly, the Board has determined that
the balance of the public interest factors it must
consider under section 4(c)(8) of the Act is favorable
and consistent with approval of the proposed acquisitions.
Based on the foregoing and other facts of record, the
Board has determined that the applications under
sections 3 and 4 of the Act should be and hereby are
approved. The acquisition of Heritage 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
that period is extended for good cause by the Federal
Reserve Bank of Chicago, pursuant to delegated authority, or by the Board. The determinations regarding
Heritage's nonbanking subsidiaries are subject to the
conditions set forth in the Board's Regulation Y,
including those in sections 225.4(d) and 225.23(b), and
to the Board's authority to require such modification
or termination of the activities of a bank holding
company or any of its subsidiaries as the Board finds
necessary to assure compliance with, and prevent
evasions of, the provisions and purposes of the Act
and the Board's regulations and orders issued thereunder.
By order of the Board of Governors, effective
June 6, 1985.
Voting for this action: Vice Chairman Martin and Governors Partee, Gramley, and Seger. Absent and not voting:
Chairman Volcker and Governors Wallich and Rice.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
666
Federal Reserve Bulletin • August 1985
ORDERS APPROVED
UNDER BANK
HOLDING
COMPANY
ACT
By the Board of Governors
During April 1985 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
Louisiana Bancshares, Inc.
Baton Rouge, Louisiana
Sun Banks, Inc.,
Orlando, Florida
SunTrust Banks, Inc.,
Atlanta, Georgia
Board action
(effective
date)
Bank(s)
Applicant
Gulf National Bancorp, Inc.,
Lake Charles, Louisiana
Gulf National Bank at Lake Charles,
Lake Charles, Louisiana
Sun Bank/Martin County, N.A.
Stuart, Florida
May 29, 1985
June 20, 1985
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
Applicant
The Adino Company,
Onida, South Dakota
Bank of Dardanelle Bankshares,
Inc.,
Dardanelle, Arkansas
Bank 2000, Inc.,
McLean, Virginia
Belle Plaine BanCorporation,
Inc.,
Belle Plaine, Minnesota
Blue Water Bancshares, Inc.,
Port Huron, Michigan
Buchanan County Bancshares,
Inc.,
St. Joseph, Missouri
Central Banc System, Inc.,
Granite City, Illinois
Charter Holding Company, Inc.
Tuscaloosa, Alabama
Charter 17 Bancorp, Inc.,
Richmond, Indiana
Bank(s)
Reserve
Bank
Effective
date
The Onida Bank,
Onida, South Dakota
Bank of Dardanelle,
Dardanelle, Arkansas
Minneapolis
June 10, 1985
St. Louis
June 3, 1985
Bank 2000, N.A.,
McLean, Virginia
State Bank of Belle Plaine,
Belle Plaine, Minnesota
Richmond
June 5, 1985
Minneapolis
June 17, 1985
Peoples Bank of Port Huron,
Port Huron, Michigan
Farmers State Bank of Buchanan
County,
St. Joseph, Missouri
Southern Illinois Bank,
Fairview Heights, Illinois
First State Bank of Tuscaloosa,
Tuscaloosa, Alabama
Northwest National Bank,
Rensselaer, Indiana
Chicago
June 3, 1985
Kansas City
May 15, 1985
St. Louis
June 3, 1985
Atlanta
May 31, 1985
Chicago
June 14, 1985
Legal Developments
Section 3—Continued
Applicant
Citizens Corporation,
Manchester, Tennessee
City Banc Corporation,
Childersburg, Alabama
Community Bancshares, Inc.,
Hustonville, Kentucky
Corn Belt Bancorporation,
Correctionville, Iowa
Countricorp,
White Sulphur Springs,
Montana
DeWitt First Bancshares Corporation,
DeWitt, Arkansas
DuPage Financial Corporation,
Lake Forest, Illinois
Easton Bancshares, Incorporated,
Easton, Minnesota
First Bankshares of St. Martin,
Ltd.,
St. Martinville, Louisiana
First Wisconsin Corporation,
Milwaukee, Wisconsin
Fourth Financial Corporation,
Wichita, Kansas
_ , , .
Bank(s)
Citizens Bank,
Smithville, Tennessee
City Bank of Childersburg,
Childersburg, Alabama
The Peoples Bank of Hustonville,
Kentucky,
Hustonville, Kentucky
Union National Bank,
Massena, Iowa
The First National Bank of White
Sulphur Springs,
White Sulphur Springs,
Montana
Bank of Lockesburg,
Lockesburg, Arkansas
Reserve
Bank
Effective
date
Atlanta
June 12, 1985
Atlanta
June 14, 1985
Cleveland
June 6, 1985
Chicago
May 3, 1985
Minneapolis
June 7, 1985
St. Louis
May 31, 1985
Chicago
June 13, 1985
Minneapolis
June 25, 1985
Atlanta
June 10, 1985
Chicago
June 10, 1985
Kansas City
June 11, 1985
Richmond
June 17, 1985
American National Bank,
Logan, West Virginia
First National Bank of Ava,
Ava, Illinois
Richmond
June 5, 1985
St. Louis
June 3, 1985
Guaranty Commerce Corporation,
Alexandria, Louisiana
Homewood Bancorporation, Inc.,
Homewood, Illinois
Atlanta
June 14, 1985
Chicago
June 5, 1985
Washington Bank and Trust Company of Naperville,
Naperville, Illinois
State Bank of Easton,
Easton, Minnesota
First National Bank of St.
Martin,
St. Martinville, Louisiana
First Bank of Grantsburg,
Grantsburg, Wisconsin
M-L Bancshares, Inc.,
Wichita, Kansas
Pittsburg B a n c s h a r e s , Inc.,
George Mason Bankshares,
Inc.,
Fairfax, Virginia
Guyan Bancshares, Inc.,
Gilbert, West Virginia
Headquarters Holding Company,
Ava, Illinois
Hibernia Corporation,
New Orleans, Louisiana
Homewood Holdings, Inc.,
Omaha, Nebraska
Pittsburg, Kansas
Coffey ville Bancshares, Inc.,
Coflfeyville, Kansas
Salina Bancshares, Inc.,
Salina, Kansas
Olathe Bancshares, Inc.,
Olathe, Kansas
The George Mason Bank,
Fairfax, Virginia
667
668
Federal Reserve Bulletin • August 1985
Section 3—Continued
.
Applicant
Iowa Park Bancshares, Inc.,
Iowa Park, Texas
Key Banks Inc.,
Albany, New York
Key Bancorp of the Pacific Inc.,
Anchorage, Alaska
Landmark Financial Group,
Inc.,
Fort Worth, Texas
Lee County Bancshares, Inc.,
Giddings, Texas
Maiden Trust Corporation,
Maiden, Massachusetts
Marshall & Ilsley Corporation,
Milwaukee, Wisconsin
Membancshares, Inc.,
Oklahoma City, Oklahoma
Neosho County Bancshares,
Inc.,
Chanute, Kansas
Norwood Associates II,
Hackensack, New Jersey
Midland Bancorporation,
Paramus, New Jersey
Oak Hill Financial Inc.,
Oak Hill, Ohio
Park Forest Holdings, Inc.,
Omaha, Nebraska
Pemi Bancorp, Inc.,
Plymouth, New Hampshire
Peoples Bancorp of Sylacauga,
Inc.,
Sylacauga, Alabama
Peoples State Bancshares, Inc.,
Rossville, Kansas
Prestonwood Bancshares, Inc.,
Dallas, Texas
P.S.B. Bancorporation, Inc.,
Hampton, Iowa
Romy Hammes, Inc.,
South Bend, Indiana
Salem Community Bancorp,
Inc.,
Salem, Illinois
Sebree Bankcorp,
Sebree, Kentucky
Shawneetown Bancorp, Inc.,
Shawneetown, Illinois
„ , , .
Bank(s)
Reserve
fiank
Effective
date
Dallas
June 6, 1985
New York
May 31, 1985
Tarrant County Bancshares, Inc.,
Fort Worth, Texas
Dallas
May 23, 1985
Lee County National Bank,
Giddings, Texas
Maiden Trust Company,
Maiden, Massachusetts
Bay View State Bank,
Milwaukee, Wisconsin
Memorial Bank N.A.,
Oklahoma City, Oklahoma
Bank of Commerce,
Chanute, Kansas
Dallas
June 6, 1985
Boston
June 7, 1985
Chicago
June 12, 1985
Kansas City
June 17, 1985
Kansas City
May 9, 1985
The Midland Bank and Trust
Company,
Paramus, New Jersey
New York
June 3, 1985
Miami Valley Bank of Southwest
Ohio,
Franklin, Ohio
Park Forest Bancorporation, Inc.,
Park Forest, Illinois
The Pemigewasset National Bank
of Plymouth,
Plymouth, New Hampshire
Peoples Bank and Trust Company
of Sylvacauga,
Sylacauga, Alabama
Citizens State Bank,
Osage City, Kansas
The Oaks Bank & Trust Company,
Dallas, Texas
Peoples Savings Bank,
Odebolt, Iowa
Peoples Bank Marycrest,
Kankakee, Illinois
Community State Bank,
Salem, Illinois
Cleveland
May 31, 1985
Chicago
June 5, 1985
Boston
June 7, 1985
Atlanta
June 3, 1985
Kansas City
June 13, 1985
Dallas
May 16, 1985
Chicago
April 27, 1985
Chicago
June 10, 1985
St. Louis
June 10, 1985
Sebree Deposit Bank,
Sebree, Kentucky
Saline County State Bank,
Stonefront, Illinois
St. Louis
May 31, 1985
St. Louis
June 14, 1985
Windthorst National Bank,
Windthorst, Texas
Bank of Oregon,
Woodburn, Oregon
Legal Developments
Section 3—Continued
A
Applicant
South Central Financial Services, Inc.,
Bricelyn, Minnesota
SSB Bancshares, Inc.,
Marshalltown, Iowa
St. Martin Bancshares, Inc.,
St. Martinville, Louisiana
Sutton Bancshares, Inc.,
Attica, Ohio
Tarrant County Bancshares,
Inc.,
Fort Worth, Texas
Union National Bancorp of Barbourville, Inc.,
Barbourville, Kentucky
Water Tower Bancorp, Inc.,
Chicago, Illinois
t> w a
Bank(s)
Reserve
BanR
Effective
^
State Bank of Bricelyn,
Bricelyn, Minnesota
Minneapolis
May 31, 1985
Story County Bank & Trust
Company,
Story City, Iowa
St. Martin Bank and Trust
Company,
St. Martinville, Louisiana
Sutton State Bank,
Attica, Ohio
Landmark Bank-Northwest,
White Settlement, Texas
Chicago
May 9, 1985
Atlanta
June 4, 1985
Cleveland
June 6, 1985
Dallas
May 23, 1985
The Union National Bank of Barbourville,
Barbourville, Kentucky
Water Tower Trust and Savings
Bank,
Chicago, Illinois
Cleveland
June 19, 1985
Chicago
June 4, 1985
Section 4
Applicant
Banc One Corporation,
Columbus, Ohio
Byron Bancshares, Inc.,
Byron, Illinois
First Railroad & Banking Company of Georgia,
Augusta, Georgia
Marshall & Ilsley Corporation,
Milwaukee, Wisconsin
Nonbanking
company
Reserve
Bank
Effective
date
Banc One Credit Corporation of
Columbus Ohio
Banc One Credit Corporation,
Casselberry, Florida
Ives Insurance Agency,
Byron, Illinois
Financial Data Services, Inc.,
Atlanta, Georgia
Cleveland
May 31, 1985
Chicago
June 4, 1985
Atlanta
June 18, 1985
Data Processing Department,
The First National Bank of
Springfield,
Springfield, Illinois
Chicago
June 6, 1985
669
670
Federal Reserve Bulletin • August 1985
PENDING
CASES INVOLVING
THE BOARD
OF
GOVERNORS
This list of pending cases does not include suits against the Federal Reserve Banks in which the Board of
Governors is not named a party.
Florida Bankers Association v. Board of Governors,
No. 84-3883 and N o . 84-3884 (11th Cir., filed Feb.
15, 1985).
Florida Department of Banking v. Board of Governors, No. 84-3831 (11th Cir., filed Feb. 15, 1985).
Florida Department of Banking v. Board of Governors, No. 84-3832 (11th Cir., filed Feb. 15, 1985).
Dimension Financial Corporation v. Board of Governors, No. 84-1274 (U.S., filed Feb. 6, 1985).
Citicorp v. Board of Governors, No. 85-4009 (2d Cir.,
filed Jan. 15, 1985).
Citicorp v. Board of Governors, No. 84-4173 (2d Cir.,
filed Dec. 31, 1984).
Citicorp v. Board of Governors, No. 84-754 (U.S.,
filed Oct. 12, 1984).
David Bolger Revocable Trust v. Board of Governors,
No. 84-4141 (2d Cir., filed Aug. 31, 1984).
Citicorp v. Board of Governors, No. 84-4121 (2d Cir.,
filed Aug. 27, 1984).
Seattle Bancorporation, et al. v. Board of Governors,
N o 84-7535 (9th Cir., filed Aug. 15, 1984).
Bank of New York Co., Inc. v. Board of Governors,
No. 84-4091 (2d Cir., filed June 14, 1984).
Citicorp v. Board of Governors, No. 84-4081 (2d Cir.,
filed May 22, 1984).
Lamb v. Pioneer First Federal Savings and Loan
Association, No. C84-702 (D. Wash., filed May 8,
1984).
Melcher v. Federal Open Market Committee, No. 841335 (D.D.C., filed, Apr. 30, 1984).
Florida Bankers Association, et al. v. Board of Governors, No. 84-3269 and No. 84-3270 (11th Cir., filed
Apr. 20, 1984).
Northeast Bancorp, Inc. v. Board of Governors, No.
84-363 (U.S., filed Mar. 27, 1984).
De Young v. Owens, et al., No. SC 9782-20-6 (D., N.
Dist., Iowa, filed Mar. 8, 1984).
Huston v. Board of Governors, N o . 84-1361 (8th Cir.,
filed Mar. 20, 1984); and N o . 84-1084 (8th Cir. filed
Jan. 17, 1984).
State of Ohio, v. Board of Governors, No. 84-1270
(10th Cir., filed Jan. 30, 1984).
Ohio Deposit Guarantee Fund v. Board of Governors,
No. 84-1257 (10th Cir., filed Jan. 28, 1984).
Colorado Industrial Bankers Association v. Board of
Governors, No. 84-1122 (10th Cir., filed Jan. 27,
1984).
Financial Institutions Assurance Corp. v. Board of
Governors, No. 84-1101 (4th Cir., filed Jan. 27,
1984).
First Bancorporation v. Board of Governors, No. 8 4 1011 (10th Cir., filed Jan. 5, 1984).
Oklahoma Bankers Association v. Federal
Reserve
Board, No. 83-2591 (10th Cir., filed Dec. 13, 1983).
The Committee for Monetary Reform, et al. v. Board
of Governors, No. 84-5067 (D.C. Cir., filed June 16,
1983).
Securities Industry Association v. Board of Governors, No. 80-2614 (D.C. Cir., filed Oct. 24. 1980);
and No. 80-2730 (D.C. Cir., filed Oct. 24, 1980).
A. G. Becker, Inc. v. Board of Governors, No. 8 0 2614 (D.C. Cir., filed Oct. 14, 1980); and No. 802730 (D.C. Cir., filed Oct. 14, 1980).
A1
Financial and Business Statistics
CONTENTS
Domestic
WEEKLY REPORTING COMMERCIAL BANKS
Financial
Statistics
MONEY STOCK AND BANK CREDIT
A3
A4
A5
A5
Reserves, money stock, liquid assets, and debt
measures
Reserves of depository institutions, Reserve
Bank credit
Reserves and borrowings—Depository
institutions
Federal funds and repurchase agreements—
Large member banks
POLIC YINSTR UMENTS
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
MONETAR Y AND CREDIT A GGREGA TES
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock, liquid assets, and debt measures
A15 Bank debits and deposit turnover
A16 Loans and securities—All commercial banks
COMMERCIAL BANKING INSTITUTIONS
A17 Major nondeposit funds
A18 Assets and liabilities, last-Wednesday-of-month
series
A19
A20
A21
A22
Assets and liabilities
All reporting banks
Banks in N e w York City
Branches and agencies of foreign banks
Gross demand deposits—individuals,
partnerships, and corporations
FINANCIAL MARKETS
A23 Commercial paper and bankers dollar
acceptances outstanding
A23 Prime rate charged by banks on short-term
business loans
A24 Interest rates—money and capital markets
A25 Stock market—Selected statistics
A26 Selected financial institutions—Selected assets
and liabilities
FEDERAL FINANCE
A28
A29
A30
A30
Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types and
ownership
A31 U.S. government securities dealers—
Transactions
A32 U.S. government securities dealers—Positions
and financing
A33 Federal and federally sponsored credit
agencies—Debt outstanding
SECURITIES MARKETS AND
CORPORATE FINANCE
A34 N e w security issues—State and local
governments and corporations
A35 Open-end investment companies—Net sales and
asset position
2
Federal Reserve Bulletin • August 1985
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
A54 Foreign official assets held at Federal Reserve
Banks
A55 Foreign branches of U.S. banks—Balance sheet
data
A57 Selected U.S. liabilities to foreign official
institutions
REPORTED BY BANKS IN THE UNITED STATES
REAL ESTATE
A38 Mortgage markets
A39 Mortgage debt outstanding
CONSUMER INSTALLMENT CREDIT
A40 Total outstanding and net change
A41 Terms
A57
A58
A60
A61
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A61 Banks' own claims on unaffiliated foreigners
A62 Claims on foreign countries—Combined
domestic offices and foreign branches
REPORTED BY NONBANKING BUSINESS
ENTERPRISES IN THE UNITED STATES
FLOW OF FUNDS
A42 Funds raised in U.S. credit markets
A43 Direct and indirect sources of funds to credit
markets
A63 Liabilities to unaffiliated foreigners
A64 Claims on unaffiliated foreigners
SECURITIES HOLDINGS AND TRANSACTIONS
Domestic
Nonfinancial
Statistics
SELECTED MEASURES
A44 Nonfinancial business activity—Selected
measures
A45 Labor force, employment, and unemployment
A46 Output, capacity, and capacity utilization
A47 Industrial production—Indexes and gross value
A49 Housing and construction
A50 Consumer and producer prices
A51 Gross national product and income
A52 Personal income and saving
International
A65 Foreign transactions in securities
A66 Marketable U.S. Treasury bonds and notes—
Foreign transactions
INTEREST AND EXCHANGE RATES
A67 Discount rates of foreign central banks
A67 Foreign short-term interest rates
A68 Foreign exchange rates
A69 Guide to Tabular
Presentation,
Statistical Releases, and Special
Tables
Statistics
SPECIAL TABLES
SUMMARY STATISTICS
A53 U.S. international transactions—Summary
A54 U.S. foreign trade
A54 U.S. reserve assets
A70 Terms of lending at commercial banks,
May 1985
A76 Assets and liabilities of foreign banks,
December 31, 1984
Money Stock and Bank Credit
1.10
A3
RESERVES, MONEY STOCK, LIQUID ASSETS, A N D DEBT MEASURES
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent)1
Item
1
2
3
4
Reserves of depository institutions2
Total
Required
Nonborrowed 3
Monetary base
5
6
7
8
9
Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt
Nontransaction components
10 In M25
11 In M3 only6
Time and savings deposits
Commercial
banks
Savings7
Small-denomination time89 10
Large-denomination time Thrift institutions
15 Savings7
16 Small-denomination time
17 Large-denomination time9
12
13
14
Debt components4
18 Federal
19 Nonfederal
20 Total loans and securities at commercial banks"
1984
Q4
1985
Q2
Q3
8.6
10.3
-10.8
7.0
6.8
6.6
-44.6
7.2
-.7
-1.5
30.7
3.9
21.2
20.7
62.0
8.7
31.1
35.2
94.4
8.0
19.8
15.2
23.8
12.2
5.9
10.3
-3.2
5.4
10.4
11.4
19.1'
4.0
13.8
12.3
14.0
9.6
6.5
7.1
10.4'
12.1'
13.C
4.5
6.8
9.5
12.2
12.6'
3.2
9.1
11.0
9.4
13.4'
10.6
12.0
10.7
9.8'
13.4'
9.0
13.8'
10.3'
8.2'
13.2'
14.3
11.1'
8.1'
10.1'
11.2'
5.7
4.1'
5.7'
8.8'
ll.C
6.1
-.5'
.7
1.5
12.0
13.8
8.4
7.9
n.a.
n.a.
7.2
24.4'
7.6
20.5'
10.9
18.7
12.5
5.5'
15.2
-3.1'
10.1'
-3.3'
3.5'
12.4'
-2.5'
5.9'
6.7
6.1
-6.7
13.1
21.8
-5.6
13.4
19.3
-10.4
6.9
12.2
-8.7
-1.8
2.6
-9.8
-7.1
-9.5
-2.0
-8.4
9.6
-10.9
2.5
23.1
-7.0
15.0
14.7
8.0
7.1
-4.8
-.7
13.4
48.1
-6.5
17.1
37.8
-6.6
15.2
29.8
2.2
1.7
21.0
6.5
-3.4
22.1
7.9
-3.9
2.3
2.9
.5
-5.4
-.7
4.8'
.8
5.0
9.9
13.2
13.1
12.9'
11.0
14.7
12.(K
9.1
15.6
12.7'
9.1'
13.2
11.7'
4.7
n.a.
n.a.
13.3
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter.
2. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
3. The monetary base not adjusted for discontinuities consists of total
reserves plus required clearing balances and adjustments to compensate for float
at Federal Reserve Banks plus the currency component of the money stock less
the amount of vault cash holdings of thrift institutions that is included in the
currency component of the money stock plus, for institutions not having required
reserve balances, the excess of current vault cash over the amount applied to
satisfy current reserve requirements. After the introduction of contemporaneous
reserve requirements (CRR), currency and vault cash figures are measured over
the weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock plus the remaining items seasonally
adjusted as a whole.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits
at all commercial banks other than those due to domestic banks, the U.S.
government, and foreign banks and official institutions less cash items in the
process of collection and Federal Reserve float; and (4) other checkable deposits
(OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer
service (ATS) accounts at depository institutions, credit union share draft
accounts, and demand deposits at thrift institutions. The currency and demand
deposit components exclude the estimated amount of vault cash and demand
deposits respectively held by thrift institutions to service their OCD liabilities.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, MMDAs, savings and smalldenomination time deposits (time deposits—including retail RPs—in amounts of
less than $100,000), and balances in both taxable and tax-exempt general purpose
and broker/dealer money market mutual funds. Excludes individual retirement
accounts (IRA) and Keogh balances at depository institutions and money market
1985
Ql
15.9?
\2.&
9.9
Jan.
16.<y
12.4'
6.4
Feb.
13.7'
10.4'
12.7
Mar.
10.6^
11.1'
11.4
Apr.
May
funds. Also excludes all balances held by U.S. commercial banks, money market
funds (general purpose and broker/dealer), foreign governments and commercial
banks, and the U.S. government. Also subtracted is a consolidation adjustment
that represents the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposits.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted is
a consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are on an end-of-month basis. Growth rates for debt reflect adjustments for
discontinuities over time in the levels of debt presented in other tables.
5. Sum of overnight RPs and Eurodollars, money market fund balances
(general purpose and broker/dealer), MMDAs, and savings and small time
deposits less the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposit liabilities.
6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents,
money market fund balances (institution-only), less a consolidation adjustment
that represents the estimated amount of overnight RPs and Eurodollars held by
institution-only money market mutual funds.
7. Excludes MMDAs.
8. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All IRA and Keogh accounts at commercial
banks and thrifts are subtracted from small time deposits.
9. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
10. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
11. Changes calculated from figures shown in table 1.23.
A4
DomesticNonfinancialStatistics • August 1985
1.11
RESERVES OF DEPOSITORY INSTITUTIONS A N D RESERVE BANK CREDIT
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week ending
Factors
Mar.
Apr.
May
Apr. 17
Apr. 24
May 1
May 8
May 15
May 22
182,130
187,124
189,001
186,787
186,177
195,039
195,592
188,009
186,050
159,896
159,737
159
8,386
8,372
14
164,467
163,690
777
8,454
8,372
166,708
165,365
1,343
8,461
8,365
96
164,225
164,225
163,900
163,900
171,950
167,089
4,861
164,869
164,869
164,355
164,355
8,372
8,372
8,806
8,372
434
8,364
8,364
8,363
8,363
0
0
0
8,372
8,372
172,581
168,164
4,417
8,714
8,371
343
1,646
540
1,178
587
12,067
11,091
4,618
16,696
1,198
542
12,450
11,093
4,618
16,631'
1,118
11,093
4,618
16,565
1,316
503
12,384
11,093
4,618
16,634'
1,272
73
12,937
11,091
4,618
16,662
634
696
12,967
11,091
4,618
16,675
1,393
589
12,793
11,091
4,618
16,687
1,474
591
11,267
11,091
4,618
16,701
179,085
549
180,973'
575
183,019
600
181,698
570
180,816
580
180,480
587
181,916
597
182,900
600
183,037
602
3,804
229
1,647
6,711
6,591
227
1,549
3,720
231
1,587
6,016
16,463
204
1,543
1,576
12,557
219
1,503
6,883
241
1,516
3,138
233
1,556
628
427
603
653
371
302
542
647
784
6,099
6,424
6,310
6,186
6,407
6,488
6,383
6,290
6,328
22,367
22,587
22,508
24,484
22,596
21,293
24,259
21,328
22,722
May 29
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit
2 U.S. government securities1
3
Bought outright
Held under repurchase agreements
4
5 Federal agency obligations
Bought outright
6
Held under repurchase agreements
7
8 Acceptances
9 Loans
10 Float
11 Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate account
14 Treasury currency outstanding
82
0
11,662
0
0
0
0
0
608
12,179
11,092
4,618
16,645'
0
0
0
0
0
0
0
0
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and adjustments
20 Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks2
218
End-of-month figures
222
1,618
Wednesday figures
1985
SUPPLYING RESERVE
Apr. 24
May
184,711
197,652
185,262
187,676
160,983
160,983
173,913
166,460
7,453
8,903
8,372
531
164,245
164,245
164,439
164,439
8,363
8,363
8,372
8,372
8,372
8,372
2,582
298
12,476
1,525
254
13,057
1,765
11,705
1,270
98
13,497
1,480
416
12,586
11,093
4,618
16,601'
11,091
4,618
16,673'
11,091
4,618
16,726
11,093
4,618
16,643'
179,21c
554
180,858'
586
184,691
602
3,063
253
1,359
19,305
348
1,302
1,933
205
1,337
May 15
May 22
May 1
May 8
189,571
200,338
192,684
186,438
190,176
166,717
166,717
176,635
165,909
10,726
8,953
8,371
582
169,801
167,660
2,141
8,585
8,371
214
164,212
164,212
164,262
164,262
8,363
8,363
8,363
8,363
1,288
368
13,094
427
720
13,151
1,484
743
11,636
4,769
1,336
11,446
11,091
4,618
16,657'
11,091
4,618
16,673
11,091
4,618
16,685
11,091
4,618
16,699
11,091
4,618
16,713
181,488
579
180,545
586
181,112
593
182,591
598
183,114
602
183,325
601
4,284
205
1,326
1,326
19,660
178
1,302
7,526
267
1,303
3,414
319
1,326
3,110
213
1,327
May 29
FUNDS
23 Reserve Bank credit
24
25
26
27
28
29
30
31
32
33
Apr. 17
Apr.
U.S. government securities1
Bought outright
Held under repurchase agreements...
Federal agency obligations
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
..
0
8,372
8,372
0
0
0
0
0
0
-816
0
0
0
0
0
0
0
0
0
0
0
0
0
0
ABSORBING RESERVE FUNDS
37 Currency in circulation
38 Treasury cash holdings
Deposits, other than reserve balances with
Federal Reserve Banks
39 Treasury
40 Foreign
41 Service-related balances and adjustments . . .
42 Other
43 Other Federal Reserve liabilities and
capital
44 Reserve balances with Federal
Reserve Banks 2
347
324
557
824
315
366
504
1,469
472
6,600
6,652
6,242
6,071
6,229
6,358
6,186
6,123
6,119
25,638
20,660
22,131
25,254
23,889
23,152
26,104
22,480
27,431
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.
180
2. Excludes required clearing balances and adjustments to compensate for
float.
NOTE. For amounts of currency and coin held as reserves, see table 1.12.
Money Stock and Bank Credit
1.12
RESERVES A N D BORROWINGS
A5
Depository Institutions
Millions of dollars
Monthly averages8
Reserve classification
Reserve balances with Reserve Banks1
Total vault cash2
Vault cash used to satisfy reserve requirements3 .
Surplus vault5 cash4
Total reserves
Required reserves
Excess reserve balances at Reserve Banks6
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks7
1
2
3
4
5
6
7
8
9
10
1985
1982
1983
1984
1984
Dec.
Dec.
Dec.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr/
May
24,939
20,392
17,049
3,343
41,853
41,353
500
697
33
187
21,138
20,755
17,908
2,847
38,894
38,333
561
774
96
2
21,738
22,316
18,958
3,358
40,696
39,843
853
3,186
113
2,604
20,843
21,827
18,392
3,434
39,235
38,542
693
4,617
212
3,837
21,738
22,316
18,958
3,358
40,696
39,843
853
3,186
113
2,604
21,577
23,044
19,547
3,497
41,125
40,380
745
1,395
62
1,050
20,416
23,927
19,857
4,070
40,273
39,370
903
1,289
71
803
22,065
21,863
18,429
3,434
40,494
39,728
766
1,593
88
1,059
23,217
21,567
18,435
3,132
41,652
40,914
738
1,323
135
868
22,377
21,898
18,666
3,232
41,043
40,245
798
1,334
165
534
Biweekly averages of daily figures for weeks ending
1985
11
12
13
14
15
16
17
18
19
20
1
Reserve balances with Reserve Banks
Total vault cash2
Vault cash used to4 satisfy reserve requirements3 .
Surplus vault cash
Total reserves5
Required reserves
Excess reserve balances at Reserve Banks6
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks7
Jan. 3C
Feb. 13
Feb. 27'
Mar. 13
Mar. 27
Apr. 10
Apr. 24'
May 8
May 22
June 5p
20,375
23,828
19,994
3,834
40,369
39,599
771
976
63
593
19,924
24,893
20,624
4,269
40,548
39,537
1,012
1,369
60
988
20,731
23,203
19,272
3,931
40,002
39,191
812
1,174
81
603
22,407
21,518
18,093
3,425
40,500
39,719
782
1,865
81
1,224
21,458
22,353
18,828
3,148
40,286
39,477
810
1,289
98
839
23,073
21,274
18,126
3,148
41,199
40,642
557
1,775
121
1,295
23,520
21,880
18,764
3,116
42,284
41,400
884
1,158
131
766
22,751
21,327
18,182
3,145
40,933
40,234
699
953
169
396
22,032
22,357
19,068
3,289
41,100
40,248
852
1,434
160
369
22,582
21,692
18,472
3,221
41,053
40,253
801
1,518
171
914
1. Excludes required clearing balances and adjustments to compensate for
float.
2. Dates refer to the maintenance periods in which the vault cash can be used to
satisfy reserve requirements. Under contemporaneous reserve requirements,
maintenance periods end 30 days after the lagged computation periods in which
the balances are held.
3. Equal to all vault cash held during the lagged computation period by
institutions having required reserve balances at Federal Reserve Banks plus the
amount of vault cash equal to required reserves during the maintenance period at
institutions having no required reserve balances.
4. Total vault cash at institutions having no required reserve balances less the
amount of vault cash equal to their required reserves during the maintenance
period.
5. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash used to satisfy reserve
requirements. Such vault cash consists of all vault cash held during the lagged
1.13
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy
reserve requirements less required reserves.
7. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
8. Before February 1984, data are prorated monthly averages of weekly
averages; beginning February 1984, data are prorated monthly averages of
biweekly averages.
NOTE. These data also appear in the Board's H.3 (502) release. For address, see
inside front cover.
FEDERAL F U N D S A N D REPURCHASE AGREEMENTS
Large Member Banks 1
Averages of daily figures, in millions of dollars
1985 week ending Monday
By maturity and source
Apr. 15
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.
Apr. 22
Apr. 29
May 6
May 13
May 20
May 27
June 3
June 10
63,357
62,838
54,786
61,576
59,551
60,948
57,948
60,878
71,024
25,116
7,835
25,254
24,127
7,372
26,606
23,919r
7,310
26,982
25,587
6,944
25,363
27,101
6,769
26,485
28,373
8,583
27,378
29,995
9,936
26,803
28,822
12,702
26,897
32,686
8,428
25,487
9,694
9,744
10,079
10,544
10,074
9,626
9,516
9,151
8,837
8,215
8,063
11,250
7,805
8,376
8,543
8,307
9,475
8,885
8,739
9,946
7,765
8,201
9,766
8,098
8,163
9,499
8,719
7,677
10,135
8,758
7,600
8,996
8,701
7,729
9,214
8,724
29,887
6,137
30,838
6,799
27,132
6,581
29,253
6,894
26,710
6,480
29,212
7,492
27,759
6,982
30,412
7,379
33,483
7,928
A6
1.14
DomesticNonfinancialStatistics • August 1985
FEDERAL RESERVE BANK INTEREST RATES
Percent per annum
Current and previous levels
Extended credit2
Short-term adjustment credit
and seasonal credit1
Federal Reserve
Bank
Rate on
6/26/85
Effective
date
7'/2
5/20/85
5/20/85
5/24/85
5/21/85
5/20/85
5/20/85
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco...
7'/>
Next 90 days
of borrowing
First 60 days
of borrowing
Previous
rate
Rate on
6/26/85
Previous
rate
Previous
rate
Rate on
6/26/85
Previous
rate
8'/i
9
9'/i
10
8V2
m
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.
V/i
7'/>-8
8
7V4-8
73/4
VA
8
8
73/4
7%
7'/4-73/4
7'/4—73/4
71/4
73/4
71/4
7'/4
63/4
63/4
6'/4
6'/4
6
6
63/4-71/4
63/4
6'/4-63/4
6'/4
6-61/4
6
5 V2-6
5>/2
5'/4-5'/2
1978— July
3
10
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
7V4
8
8-8'/i
m
8'/!-9'/>
9 '/>
F.R.
Bank
of
N.Y.
71/4
m
m
8
m
8'/2
91/2
91/2
1979— July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
10
10-10'/!
l
i0 /2
10'/2
5'/4
5'/4
1980— Feb. 15
19
May 29
30
June 13
16
July 28
29
Sept. 26
Nov. 17
Dec. 5
8
12-13
13
12-13
12
11-12
11
10-11
10
11
12
12-13
13
13
13
13
12
11
11
10
10
11
12
13
13
5'/4-53/4
5 !/4-53/4
53/4
6
53/4
6
51/4
53/4
(M.
6V2
1
1
1. A temporary simplified seasonal program was established on Mar. 8, 1985,
and the interest rate was set at 8'/2 percent at that time. On May 20 this rate was
lowered to 8 percent.
2. Applicable to advances when exceptional circumstances or practices involve
only a particular depository institution and to advances when an institution is
under sustained liquidity pressures. As an alternative, for loans outstanding for
more than 150 days, a Federal Reserve Bank may charge a flexible rate that takes
into account rates on market sources of funds, but in no case will the rate charged
be less than the basic rate plus one percentage point. Where credit provided to a
particular depository institution is anticipated to be outstanding for an unusually
prolonged period and in relatively large amounts, the time period in which each
rate under this structure is applied may be shortened. See section 201.3(b)(2) of
Regulation A.
3. Rates for short-term adjustment credit. For description and earlier data see
the following publications of the Board of Governors: Banking and Monetary
Range (or
level)—
All F.R.
Banks
7-71/4
7'/4
9
10»/>-l1
11
11-12
12
m
5/20/85
5/20/85
5/24/85
5/21/85
5/20/85
5/20/85
5/20/85
5/21/85
5/20/85
5/20/85
5/20/85
5/21/85
10
3
10
10Vi
11
11
12
12
5'/!
5V2
5'/4
6-61/2
6'/2
6'/>-7
7
Effective date
Effective date
for current rates
Rate on
6/26/85
71/2
5/20/85
5/21/85
5/20/85
5/20/85
5/20/85
5/21/85
After 150 days
Effective date
1981— May
5
8
Nov. 2
6
Dec. 4
1982— July 20
23
Aug. 2
3
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17
1984— Apr.
Range (or
level)—
All F.R.
Banks
13-14
14
13-14
13
12
llVi-12
11^
11-11'/!
11
10'/2
10-10W
10
9Vi-10
91/2
9-9'/!
9
8W-9
8'/>-9
8'/!
9
13
Nov. 21
26
Dec. 24
May 20
28
8'/i-9
9
8'/i-9
In effect June 26, 1985
7'/!
8'A
8
7'/2-8
7'/!
F.R.
Bank
of
N.Y.
14
14
13
13
12
llVl
im
11
11
10'/!
10
10
9 Vi
9 Vi
9
9
9
8V*>
8 Vi
9
9
8'/i
8'/!
8
V/2
V/2
IVi
Statistics, 1914-1941, and 1941-1970; Annual Statistical Digest, 1970-1979, 1980,
1981, and 1982.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than 4 weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,
1980. There was no surcharge until Nov. 17,1980, when a 2 percent surcharge was
adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and
to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective
Sept. 22, 1981, and to 2 percent effective Oct. 12. As of Oct. 1, the formula for
applying the surcharge was changed from a calendar quarter to a moving 13-week
period. The surcharge was eliminated on Nov. 17, 1981.
Policy Instruments
1.15
Al
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
Effective date
Net demand2
7
$10 million-$100 million
$100 million-$400 million
Over $400 million
Time and savings2-3
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
11 /4
123/4
16'/4
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
3
3/16/67
93l/2
3
2'A
1
3/16/67
1/8/76
10/30/75
6
2'/i
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 of foreign 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 l x h
percent above the base used to calculate the marginal reserve in the statement
Type of deposit, and
deposit interval3
Depository institution requirements
after implementation of the
Monetary Control Act6
Percent
Effective date
Net transaction accounts1-*
$0-$29.8 million
Over $29.8 million
3
12
1/1/85
1/1/85
Nonpersonal time deposits9
By original maturity
Less
than 1 Vi years
1 xh years or more
3
0
10/6/83
10/6/83
Eurocurrency liabilities
All types
3
11/13/80
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.
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. 1, 1985, the amount of the exemption is $2.4 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 of about three
years was completed on Feb. 2, 1984. 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;
effective Dec. 30, 1982, to $26.3 million; effective Dec. 29, 1983, to $28.9 million;
and effective Jan. 1, 1985, to $29.8 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
DomesticNonfinancialStatistics • August 1985
1.16
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 June 30, 1985
In effect June 30, 1985
Percent
1
2
3
4
Savings
Negotiable order of withdrawal accounts
Negotiable order of withdrawal2 accounts of $1,000 or more2
Money market deposit account
Time accounts
5 7-31 days of less than $1,0002 4
6 7-31 days of $1,000 or more
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.
2. Effective Dec. 1, 1983, IRA/Keogh (HR10) Plan accounts are not subject to
minimum deposit requirements. Effective Jan. 1, 1985, the minimum denomination requirement was lowered from $2,500 to $1,000.
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. Effective Jan. 1, 1985,
5W
51/4
3
<)
51/!
Effective date
Effective date
1/1/84
12/31/80
1/5/83
12/14/82
5 Vi
1/1/84
1/5/83
10/1/83
5 <A
51/4
3
()
7/1/79
12/31/80
1/5/83
12/14/82
9/1/82
1/5/83
10/1/83
the minimum denomination and average maintenance balance requirements was
lowered to $1,000. No minimum maturity 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 $1,000, 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. Effective Jan. 1, 1985, the minimum denomination requirement was lowered
from $2,500 to $1,000. Deposits of less than $1,000 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
1984
Type of transaction
1982
1983
1985
1984
Sept.
Nov.
Oct.
Jan.
Dec.
Feb.
Mar.
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
17,067
8,369
0
3,000
18,888
3,420
0
2,400
20,036
8,557
0
7,700
3,249
71
0
0
507
1,300
0
2,200
4,463
0
0
0
3,410
0
0
0
0
2,668
0
1,600
2,976
214
0
400
916
554
0
500
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
312
0
17,295
-14,164
0
484
0
18,887
-16,553
87
1,126
0
16,354
-20,840
0
600
0
872
0
0
0
0
896
-1,497
0
146
0
1,348
-3,363
0
182
0
771
-966
0
0
0
596
-625
0
0
0
1,987
-2,739
0
961
0
1,299
0
0
10
11
12
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
1,797
0
-14,524
11,804
1,896
0
-15,533
11,641
1,638
0
-13,709
16,039
0
0
-872
0
0
0
-896
1,497
830
0
594
1,763
0
0
-771
966
0
0
-596
625
0
0
-1,902
1,645
465
0
-1,299'
0
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
388
0
-2,172
2,128
890
0
-2,450
2,950
536
300
-2,371
2,750
0
0
0
0
0
0
0
0
335
0
-1,893
850
0
0
0
0
0
100
0
0
0
0
-54
600
0
0
0
0
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
307
0
-601
234
383
0
-904
1,962
441
0
-275
2,052
0
0
0
0
0
0
0
0
164
0
-49
750
0
0
0
0
0
0
0
0
0
0
-30
493
0
0
0
0
22
23
24
All maturities
Gross purchases
Gross sales
Redemptions
19,870
8,369
3,000
22,540
3,420
2,487
23,476
7,553
7,700
3,849
71
0
507
1,300
2,200
5,938
0
0
3,591
0
0
0
2,768
1,600
2,976
214
400
2,343
554
500
25
26
Matched transactions
Gross sales
Gross purchases
543,804
543,173
578,591
576,908
808,986
810,432
52,893
55,776
89,689
85,884
51,904
55,516
63,674
61,537
66,668
66,367
57,076
57,283
54,718
57,288
27
28
Repurchase agreements
Gross purchases
Gross sales
130,774
130,286
105,971
108,291
139,441
139,019
26,040
30,867
0
0
12,063
12,063
3,888
2,261
20,225
21,852
19,584
17,077
4,922
7,429
8,358
12,631
8,908
1,835
-6,798
9,549
3,080
-6,295
5,077
1,351
0
0
189
0
0
292
0
0
256
0
0
1
0
0
14
0
0
90
0
0
0
0
0
0
0
0
17
0
0
18,957
18,638
8,833
9,213
1,205
817
3,743
4,112
0
0
698
698
506
119
1,463
1,851
2,428
2,048
445
825
130
-672
132
-370
-14
-90
388
388
363
-380
36 Repurchase agreements, net
1,285
-1,062
-418
0
0
0
0
0
0
0
37 Total net change in System Open Market
Account
9,773
10,897
6,116
1,465
-6,811
9,459
3,468
-6,683
5,440
971
29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
30
31
32
Outright transactions
Gross purchases
Gross sales
Redemptions
Repurchase agreements
33 Gross purchases
34 Gross sales
35 Net change in federal agency obligations
*
BANKERS ACCEPTANCES
NOTE: Sales, redemptions, and negative figures reduce holdings of the System
Open Market Account; all other figures increase such holdings. Details may not
add to totals because of rounding.
A10
1.18
DomesticNonfinancialStatistics • August 1985
FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements
Millions of dollars
Account
May 8
May 1
Wednesday
End of month
1985
1985
May 15
May 22
May 29
Mar.
May
Apr.
Consolidated condition statement
ASSETS
11,091
4,618
591
11,091
4,618
536
11,091
4,618
525
11,091
4,618
513
11,091
4,618
491
11,093
4,618
566
11,091
4,618
597
11,091
4,618
490
1,288
0
427
0
1,484
0
4,769
0
1,419
0
2,582
0
1,525
0
1,765
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
Notes
11
Bonds
12
Total bought outright1
13 Held under repurchase agreements
14 Total U.S. government securities
0
0
0
0
0
0
0
0
8,371
582
8,371
214
8,363
0
8,363
0
8,363
0
8,372
0
8,372
531
8,363
0
75,100
67,269
23,540
165,909
10,726
176,635
76,851
67,269
23,540
167,660
2,141
169,801
73,403
67,066
23,743
164,212
0
164,212
73,453
67,066
23,743
164,262
0
164,262
73,905
67,066
23,743
164,714
0
164,714
71,469
66,070
23,444
160,983
0
160,983
75,651
67,269
23,540
166,460
7,453
173,913
73,436
67,066
23,743
164,245
0
164,245
15 Total loans and securities
186,876
178,813
174,059
177,394
174,496
171,937
184,341
174,373
8,174
578
6,948
578
10,844
582
7,430
583
8,278
581
6,127
572
9,730
577
6,865
581
4,007
8,509
4,010
8,563
4,017
6,798
4,021
6,842
4,026
7,313
3,971
7,933
4,007
8,473
4,058
7,066
224,444
215,157
212,534
212,492
210,894
206,817
223,434
209,142
165,622
167,039
167,541
167,726
169,219
163,728
165,367
169,056
24,454
19,660
178
366
27,407
7,526
267
504
23,806
3,414
319
1,469
28,758
3,110
213
472
22,867
3,853
223
530
26,997
3,063
253
347
21,962
19,305
348
324
23,468
1,933
205
557
44,658
35,704
29,008
32,553
27,473
30,660
41,939
26,163
7,806
2,618
6,228
2,438
9,862
2,375
6,094
2,372
8,116
2,335
5,829
2,445
9,476
2,614
7,681
2,359
220,704
211,409
208,786
208,745
207,143
202,662
219,396
205,259
1,703
1,626
411
1,705
1,626
417
1,711
1,626
411
1,710
1,626
411
1,714
1,626
411
1,687
1,624
844
1,702
1,626
710
1,713
1,626
544
33 Total liabilities and capital accounts
224,444
215,157
212,534
212,492
210,894
206,817
223,434
209,142
34 MEMO: Marketable U.S. government securities held in
custody for foreign and international account
115,532
117,511
118,116
119,187
120,328
114,890
116,712
119,753
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
22 To depository institutions
23 U.S. Treasury—General account
24 Foreign—Official accounts
25 Other
26 Total deposits
27 Deferred availability cash items
28 Other liabilities and accrued dividends4
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
Federal Reserve note statement
35 Federal Reserve notes outstanding
36
LESS: Held by bank
37
Federal Reserve notes, net
Collateral held against notes net:
38 Gold certificate account
39 Special drawing rights certificate account
40 Other eligible assets
41 U.S. government and agency securities
196,383
30,761
165,622
196,954
29,915
167,039
197,533
29,992
167,541
197,940
30,214
167,726
198,229
29,010
169,219
196,021
32,293
163,728
196,490
31,123
165,367
198,021
28,965
169,056
11,091
4,618
0
149,913
11,091
4,618
0
151,330
11,091
4,618
0
151,832
11,091
4,618
0
152,017
11,091
4,618
0
153,510
11,093
4,618
0
148,017
11,091
4,618
0
149,658
11,091
4,618
0
153,347
42 Total collateral
165,622
167,039
167,541
167,726
169,219
163,728
165,367
169,056
1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Assets shown in this line are revalued monthly at market exchange rates.
3. Includes special investment account at Chicago of Treasury bills maturing
within 90 days.
4. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
NOTE: Some of these data also appear in the Board's H.4.1 (503) release. For
address, see inside front cover.
Federal Reserve Banks
1.19
FEDERAL RESERVE B A N K S
All
Maturity Distribution of Loan and Security Holdings
Millions of dollars
Type and maturity groupings
Wednesday
End of month
1985
1985
May 1
May 8
May 15
May 22
May 29
Mar. 29
Apr. 30
May 31
Within 15 days
16 days to 90 days
91 days to 1 year
1,288
1,180
108
0
427
361
66
0
1,484
1,410
74
0
4,769
4,690
79
0
1,419
1,363
56
0
2,582
2,558
24
0
1,525
1,438
87
0
1,765
1,700
65
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
0
0
0
0
9 U.S. government securities—Total
10 Within 15 days1
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
176,635
18,846
34,586
50,568
37,204
14,639
20,792
169,801
12,590
34,263
50,314
37,204
14,638
20,792
164,212
5,281
35,751
49,954
37,132
15,281
20,813
164,262
5,153
37,808
48,075
37,132
15,281
20,813
164,714
7,975
35,578
47,935
37,132
15,281
20,813
160,983
4,565
37,280
46,587
37,309
14,546
20,696
173,913
12,305
38,406
50,568
37,204
14,638
20,792
164,245
4,256
38,379
48,474
37,042
15,281
20,813
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
8,954
590
532
2,065
4,083
1,284
400
8,585
222
669
1,929
4,082
1,284
399
8,363
67
631
1,949
4,088
1,229
399
8,363
151
548
1,949
4,087
1,229
399
8,363
162
566
1,918
4,089
1,229
399
8,372
142
461
1,942
4,164
1,264
399
8,903
613
533
1,991
4,083
1,284
399
8,363
162
566
1,918
4,089
1,229
399
2
3
4
1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements.
A12
1.20
DomesticNonfinancialStatistics • August 1985
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS A N D MONETARY BASE
Billions of dollars, averages of daily figures
_
1981
Dec.
1982
Dec.
1983
Dec.
1984
1984
Dec.
Oct.
2
3
4
5
Nonborrowed reserves
Nonborrowed reserves plus extended credit3
Required reserves
Monetary base4
Dec.
Jan.
Feb.
40.37
Mar.
Apr.
May
Seasonally adjusted
ADJUSTED FOR
1 Total reserves2
Nov.
1985
32.10
31.46
31.61
31.78
158.10
34.28
36.14
38.71
37.76
33.65
33.83
33.78
170.14
35.36
35.37
35.58
185.49
35.52
38.13
37.86
198.74
31.74
36.80
37.14
196.18
38.11
38.71
39.71
33.50
37.33
37.42
197.43
35.52
38.13
37.86
198.74
38.32
39.37
38.97
200.07
40.57
40.92
41.39
39.08
39.88
39.46
202.10
38.97
40.03
39.80
203.01
39.59r
40.46
40.18
203.69
40.05
40.59
40.59
205.33
40.07
41.25'
Not seasonally adjusted
6 Total reserves2
7
8
9
10
Nonborrowed reserves
Nonborrowed reserves plus extended credit3
Required reserves
Monetary base4
32.82
35.01
36.86
40.13
37.95
38.69
40.13
40.70
39.88
32.18
32.33
32.50
160.94
34.37
34.56
34.51
173.17
36.09
36.09
36.30
188.76
36.94
39.55
39.28
202.02
31.94
36.99
37.33
196.13
34.07
37.91
37.99
198.22
36.94
39.55
39.28
202.02
39.31
40.36
39.96
200.93
38.59
39.39
38.97
199.54
41.92
41.85
38.89
40.70
38.51
39.23
40.70
41.12
40.27
41.29
41.44
41.61
170.47
41.22
41.41
41.35
180.52
38.12
38.12
38.33
192.36
37.51
40.09
39.84
202.59
32.50
37.37
37.89
196.69
34.62
38.54
38.54
198.77
37.51
40.09
39.84
202.59
39.73
40.88
40.38
201.35
38.98
39.83
39.37
199.94
38.47 39.93
39.53 40.80
39.30 40.52
200.86 203.42
40.63
39.30
39.83
39.84
204.52
NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS5
11 Total reserves2
12
13
14
15
Nonborrowed reserves
Nonborrowed reserves plus extended credit3
Required reserves
Monetary base4
1. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
2. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash used to satisfy reserve
requirements. Such vault cash consists of all vault cash held during the lagged
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
3. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
4. The monetary base not adjusted for discontinuities consists of total reserves
plus required clearing balances and adjustments to compensate for float at Federal
Reserve Banks and the currency component of the money stock less the amount
40.49
41.65
38.90 40.33
40.03 40.77
39.73 40.91
201.29 203.81''
41.04
39.71
40.44
40.25
204.93
of vault cash holdings of thrift institutions that is included in the currency
component of the money stock plus, for institutions not having required reserve
balances, the excess of current vault cash over the amount applied to satisfy
current reserve requirements. After the introduction of contemporaneous reserve
requirements (CRR), currency and vault cash figures are measured over the
weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock and the remaining items seasonally
adjusted as a whole.
5. Reflects actual reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated
with implementation of the Monetary Control Act or other regulatory changes to
reserve requirements.
NOTE. Latest monthly and biweekly figures are available from the Board's
H.3(502) statistical release. Historical data and estimates of the impact on
required reserves of changes in reserve requirements are available from the
Banking Section, Division of Research and Statistics, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
Monetary and Credit Aggregates
1.21
A13
MONEY STOCK, LIQUID ASSETS, A N D DEBT MEASURES
Billions of dollars, averages of daily figures
1985
1981'
Dec.
1982'
Dec.
1983'
Dec.
1984
Dec.
Feb.
Mar.
Apr.'
May
Seasonally adjusted
1 Ml
? M2
M3
4 L
5
441.8
1,794.4
2,235.8
2,5%.5
4,309.5
480.8
1,954.9
2,446.8
2,857.4
4,709.7
528.0
2,188.8
2,701.8
3,176.4
5,224.6
558.5
2,371.7'
2,995.C
3,543.8'
5,953.2'
569.4
2,421-C
3,041.0'
3,598.1'
6,074.7'
572.1
2,429.2'
3,055^
3,624.4'
6,130.2'
575.0
2,428.0
3,057.5
3,628.8
6,191.7
581.6
2,445.0
3,077.7
n.a.
n.a.
124.0
4.4
235.2
78.2
134.3
4.3
238.6
103.5
148.4
4.9
243.5
131.3
158.7
5.2
248.6
146.0
160.5
5.3
251.7
151.8
161.3
5.4
251.9
153.6
161.7
5.5
252.5
155.3
163.0
5.5
255.7
157.3
1,352.6
441.4
1,474.0
492.0
1,660.8
512.9
1,813.2'
623.3'
1,851.6'
620.0'
1,857.0r
626.4'
1,853.1
629.5
1,863.4
632.7
6
7
8
9
Ml components
Currency2
Travelers checks34
Demand deposits
Other checkable deposits5
10
11
Nontransactions components
In M26
In M3 only7
12
13
Savings deposits9
Commercial Banks
Thrift institutions
158.6
185.8
163.5
194.4
133.4
173.6
122.6
166.0
121.4
168.0
120.3
168.4
119.6
168.3
120.4
169.0
14
15
Small denomination time deposits9
Commerical Banks
Thrift institutions
347.8
475.8
379.8
471.7
350.7
433.8
387.0
498.6
382.0
495.6
382.8
495.8
387.6
497.8
389.9
501.9
16
17
Money market mutual funds
General purpose and broker/dealer
Institution-only
150.6
38.0
185.2
51.1
138.2
43.2
167.5
62.7
175.1'
62.2
177.&
59.5
176.3
59.5
172.2
63.5
18
19
Large denomination time
deposits10
Commercial Banks11
Thrift institutions
247.5
54.6
262.0
66.2
228.9
101.9
264.4
151.8
264.4
154.9
269.5
154.2
272.8
154.3
271.7
156.0
20
21
Debt components
Federal debt
Non-federal debt
825.9
3,483.6
979.3
3,730.4
1,172.8
4,051.8
4,586.1'
1,401.0'
4,673.7'
1,413.5'
4,716.8'
1,429.0
4,762.7
n.a.
n.a.
\,361.(y
Not seasonally adjusted
??
23
24
75
26
Ml
M2
M3
L
27
28
29
30
Ml components
Currency2
Travelers checks34
Demand deposits
Other checkable deposits5
31
32
Nontransactions components
M2«
M3 only7
33
34
Money market deposit accounts
Commercial banks
Thrift institutions
35
36
452.2
1,798.7
2,243.4
2,604.7
4,304.7
491.8
1,959.6
2,454.4
2,862.1
4,703.8
539.7
2,194.0
2,709.2
3,180.1
5,218.8
570.4
2,376.7
3,002.2'
3,545.1'
5,947.2'
558.6
2,414.5'
3,034.4'
3,596.9'
6,052.8'
564.9
2,429.5'
3,057.3'
3,631.8'
6,101.4'
581.6
2,439.9
3,069.4
3,642.0
6,161.2
576.2
2,441.1
3,075.6
n.a.
n.a.
126.2
4.1
243.4
78.5
136.5
4.0
247.2
104.1
150.5
4.6
252.2
132.4
160.9
4.9
257.4
147.2
158.6
5.0
244.9
150.1
159.8
5.1
246.3
153.6
161.2
5.2
255.1
160.1
163.1
5.4
251.4
156.2
1,346.5
444.7
1,467.8
494.8
1,654.2
515.2
1,806.2'
625.5
619.8'
627^
1,858.3
629.5
1,864.9
634.5
*
.0
26.3
16.9
230.5
148.7
267.1
147.9
289.3
159.0
294.0
163.9
295.9
164.4
298.3
165.5
Savings deposits8
Commercial Banks
Thrift institutions
157.5
184.7
162.1
193.2
132.2
172.5
121.4
164.9
120.4
166.5
120.6
168.2
120.9
169.3
121.7
170.2
37
38
Small denomination time deposits9
Commercial Banks
Thrift institutions
347.7
475.5
380.1
471.7
351.1
434.2
387.6
499.4
384.1
499.5
383.7
496.2
383.9
495.6
385.2
495.4
39
40
Money market mutual funds
General purpose and broker/dealer
Institution-only
150.6
38.0
185.2
51.1
138.2
43.2
167.5
62.7
175.1'
62.2
W.6T
59.5
176.3
59.5
172.2
63.5
41
42
Large denomination time
deposits10
Commercial Banks11
Thrift institutions
251.7
54.4
265.2
65.9
230.8
101.4
265.9
151.1
263.9
154.9
269.8
153.3
270.3
153.4
269.6
155.9
43
44
Debt components
Federal debt
Non-federal debt
823.0
3,481.7
976.4
3,727.4
1,170.2
4,048.6
1,364.7
4,582.5'
1,397.4
4,655.4'
1,412.0
4,689.4'
1,427.1
4,734.1
For notes see following page.
n.a.
n.a.
A14
DomesticNonfinancialStatistics • August 1985
NOTES TO TABLE 1.21
1. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits
at all commercial banks other than those due to domestic banks, the (J.S.
government, and foreign banks and official institutions less cash items in the
process of collection and Federal Reserve float; and (4) other checkable deposits
(OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer
service (ATS) accounts at depository institutions, credit union share draft
accounts, and demand deposits at thrift institutions. The currency and demand
deposit components exclude the estimated amount of vault cash and demand
deposits respectively held by thrift institutions to service their OCD liabilities.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, MMDAs, savings and smalldenomination time deposits (time deposits—including retail RPs—in amounts of
less than $100,000), and balances in both taxable and tax-exempt general purpose
and broker/dealer money market mutual funds. Excludes individual retirement
accounts (IRA) and Keogh balances at depository institutions and money market
funds. Also excludes all balances held by U.S. commercial banks, money market
funds (general purpose and broker/dealer), foreign governments and commercial
banks, and the U.S. government. Also subtracted is a consolidation adjustment
that represents the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposits.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted is
a consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are on an end-of-month basis.
2. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of
commercial banks. Excludes the estimated amount of vault cash held by thrift
institutions to service their OCD liabilities.
3. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. Travelers checks issued by depository institutions are included in
demand deposits.
4. Demand deposits at commercial banks and foreign-related institutions other
than those due to domestic banks, the U.S. government, and foreign banks and
official institutions less cash items in the process of collection and Federal
Reserve float. Excludes the estimated amount of demand deposits held at
commercial banks by thrift institutions to service their OCD liabilities.
5. Consists of NOW and ATS balances at all depository institutions, credit
union share draft balances, and demand deposits at thrift institutions. Other
checkable deposits seasonally adjusted equals the difference between the seasonally adjusted sum of demand deposits plus OCD and seasonally adjusted demand
deposits. Included are all ceiling free "Super NOWs," authorized by the
Depository Institutions Deregulation committee to be offered beginning Jan. 5,
1983.
6. Sum of overnight RPs and overnight Eurodollars, money market fund
balances (general purpose and broker/dealer), MMDAs, and savings and small
time deposits, less the consolidation adjustment that represents the estimated
amount of demand deposits and vault cash held by thrift institutions to service
their time and savings deposits liabilities.
7. Sum of large time deposits, term RPs and term Eurodollars of U.S.
residents, money market fund balances (institution-only), less a consolidation
adjustment that represents the estimated amount of overnight RPs and Eurodollars held by institution-only money market funds.
8. Savings deposits exclude MMDAs.
9. Small-denomination time deposits—including retail RPs— are those issued
in amounts of less than $100,000. All individual retirement accounts (IRA) and
Keogh accounts at commercial banks and thrifts are subtracted from small time
deposits.
10. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
11. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
NOTE: Latest monthly and weekly figures are available from the Board's H.6
(508) release. Historical data are available from the Banking Section, Division of
Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Monetary and Credit Aggregates
1.22
A15
BANK DEBITS 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.
1984
1985
Bank group, or type of customer
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
Seasonally adjusted
DEBITS TO
2
Demand deposits
1 All insured banks
2 Major New York City banks
3 Other banks
3
4 ATS-NOW accounts
5 Savings deposits4
80,858.7
34,108.1
46,966.5
761.0
679.6
90,914.4
37,932.9
52,981.5
1,036.2
720.3
109,642.3
47,769.4
61,873.1
1,405.5
741.4
134,016.3
60,992.8
73,023.5
1,678.5
579.1
137,512.0
62,341.0
75,171.0
1,677.5
486.0
140,678.6
64,474.7
76,203.9
1,552.0
501.3
143,281.5
63,157.0
80,124.5
1,618.6
499.8
139,608.3
62,523.7
77,084.6
1,567.0
539.2
154,410.2
70,597.6
83,812.6
1,684.7
589.1
285.8
1,116.7
185.9
14.4
4.1
324.2
1,287.6
211.1
14.5
4.5
379.7
1,528.0
240.9
15.6
5.4
448.2
1,917.5
273.3
16.5
4.7
453.4
1,903.0
277.8
16.3
4.0
468.6
2,008.6
284.2
14.6
4.2
471.4
1,902.2
295.9
15.0
4.2
456.3
1,967.0
281.1
14.4
4.6
508.5
2,183.2
308.9
15.3
5.0
DEPOSIT TURNOVER
6
7
8
9
10
Demand deposits2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts3
Savings deposits4
11
12
13
14
15
16
Demand deposits2
All insured banks
Major New York City banks
Other banks
ATS-NOW
accounts3
MMDA5
Savings deposits4
Not seasonally adjusted
DEBITS TO
81,197.9
34,032.0
47,165.9
737.6
91,031.8
38,001.0
53,030.9
1,027.1
672.9
720.0
286.4
1,114.2
186.2
14.0
325.0
1,295.7
211.5
14.4
4.1
4.5
109,517.6
47,707.4
64,310.2
1,397.0
567.4
742.0
131,791.6
61,148.7
70,643.0
1,524.8
819.7
538.7
140,166.0
64,498.9
75,667.1
1,625.4
899.7
470.6
148,880.1
68,203.1
80,677.0
1,838.9
1,103.9
544.7
129,297.2
57,337.4
71,959.8
1,524.4
980.9
455.5
143,154.3
64,188.9
78,965.4
1,624.7
1,032.5
552.9
149,500.0
67,422.3
82,077.7
1,940.9
1,220.5
644.4
379.9
1,510.0
240.5
15.5
2.8
5.4
438.8
1,944.6
262.7
14.9
3.2
4.4
447.1
1,910.8
270.5
15.4
3.4
3.9
486.0
2,025.9
295.9
17.1
4.0
4.6
437.2
1,780.6
273.0
14.3
3.4
3.9
480.9
1,990.7
297.5
14.9
3.5
4.7
491.4
2,138.6
301.0
17.2
4.2
5.4
DEPOSIT TURNOVER
Demand deposits2
17 All insured banks
18 Major New York City banks
19 Other banks
20 ATS-NOW
accounts3
21 MMDA5
22 Savings deposits4
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.
These data also appear on the Board's G.6 (406) release. For address, see inside
front cover.
A16
1.23
D o m e s t i c F i n a n c i a l S t a t i s t i c s • A u g u s t 1985
LOANS A N D SECURITIES
All Commercial Banks'
Billions of dollars; averages of Wednesday figures
1984
June
July
Aug.
Sept.
1985
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
Seasonally adjusted
1 Total loans and securities2
2 U.S. government securities
3 Other securities
4 Total loans and leases2
5 Commercial and industrial 3
Bankers acceptances held ..
6
7
Other commercial and
industrial
U.S. addressees4
8
9
Non-U.S. addressees4
10 Real estate
11 Individual
12 Security
13 Nonbank financial
institutions
14 Agricultural
15 State and political
subdivisions
16 Foreign banks
17 Foreign official institutions . . .
18 Lease financing receivables...
19 All other loans
1,636.6
1,652.6
1,662.1
1,674.8
1,682.8
253.7
139.7
1,243.2
452.2
5.7'
256.4
139.5
1,256.7
455.0
6.2'
257.1
140.8
1,264.2
458.1
5.8'
258.0
141.9
1,274.9
460.0
5.4'
257.0
141.5
1,284.3
463.0
446.5'
434.8'
11.7
354.7
233.0
28.6
448.8'
437.2'
11.7'
358.3
236.3
28.0
452.3'
440.6'
11.6
361.2
238.5
26.1
454^
443.5'
11.1
364.7
241.3
28.8
31.3'
40.5'
31.4
40.6
30.8'
40.6'
38.9
12.4'
8.8
14.3
28.7'
40.4'
12.5'
9.3
14.5
30.^
41.2'
12.2'
9.4
14.8
31.4'
1,701.0'
1,714.8
1,724.0
1,742.3
1,758.9
1,765.8'
1,785.3
259.4
141.1
1,300.6
467.1
5.6? 6.0'
260.2
139.9
1,314.7
468.1
5.2'
260.1
142.4
1,321.5
468.4
5.C
265.8
140.8
1,335.6
473.4
6.1'
266.9
138.7
1,353.3
480.4
6.4'
261.1
140.1
265.9
142.1
480.9
5.4'
483.3
4.9
457.3'
446.7'
10.6
367.7
243.5
30.3
461.1'
450.7'
10.3
371.8
246.7
30.2
462^
453.3'
9.6
375.6
251.0
31.5
463.4'
453.8'
9.7
377.9
254.6
31.9
467.2'
457.1'
10.2
382.1
257.7
31.6
474.1'
463.8'
10.3
385.8
261.9
32.8
475.5'
465.3'
10.3
389.9
265.5
35.1
478.4
468.7
9.6
393.8
268.7
37.5
31.2'
40.7
31.1'
40.6
31.2
40.5
31.4
40.3
31.2'
40.2
30.9
40.2
30.7
40.3
31.2
40.1
31.5
39.8
41.7'
11.7'
8.9
15.0
30^
41.2
11.7'
8.5
15.1
42.1
11.9»8.4
15.3
35.5'
44.0
11.5'
8.3
15.5
37.4'
46.9
11.4'
7.9'
15.6
35.4
46.6
11.5'
7.9
15.8
38.0
46.8
11.2'
7.7
16.1
39.5'
47.1
10.8'
7.8
16.4
39.8'
47.4
10.6
7.8
16.7
40.1
l,364.6r1,377.3
Not seasonally adjusted
20 Total loans and securities2
1,637.6
1,646.7
1,656.1
1,673.2
1,684.0
1,701.9
1,725.8
1,732.0
1,740.4
1,755.0
1,766.0'
1,781.4
21 U.S. government securities
22 Other securities
23 Total loans and leases2
24 Commercial and industrial....
lt> Bankers acceptances held3..
26
Other commercial and
industrial
27
U.S. addressees4
Non-U.S. addressees 4 ....
28
29 Real estate
30 Individual
31 Security
32 Nonbank financial
institutions
33 Agricultural
34 State and political
subdivisions
35 Foreign banks
36 Foreign official institutions . . .
37 Lease financing receivables...
38 All other loans
257.2
139.4
1,241.0
450.9
5.9'
256.2
138.2
1,252.4
454.3
255.5
140.4
1,260.2
456.1
255.7
141.3
1,276.2
459.9
5.3'
254.1
140.9
1,289.0
463.8
5.5'
255.2'
141.2
1,305.5
467.3
5.9'
256.9
141.5
1,327.4
471.2
5.7'
260.1
143.3
1,328.7
470.3
5.1'
266.8
141.0
1,332.6
472.9
6.<K
269.0
138.9
1,347.1
480.0
6.3'
266.6
139.8'
1,359.7
481.2
5.5'
268.0
142.7
1,370.7
481.9
4.9
445.0'
433.6'
11.3
354.1
231.3
28.5
448.2'
436.5'
11.7
357.7
234.7
26.6
450.4'
438.8'
11.6
361.4
238.3
25.4
454^
443.3'
11.3
365.8
242.3
27.7
458.3'
447.2'
11.1
368.9
245.3
30.2
461.4'
450.5'
372.8
248.4
31.7
465.5'
455.0'
10.5'
376.2
254.0
35.2
465.2'
455.4'
9.8
378.6
257.0
33.0
466.9'
457.2'
9.7
381.7
257.4
30.8
473.7'
463.9'
9.8
384.7
259.7
32.2
475.7'
466.2'
9.5
388.6
263.2
35.0
477.0
467.8
9.2
392.8
266.5
36.0
31.3'
40.9
31.4
41.4'
30.9'
41.4
31.3'
41.5
31.C
41.2
31.1
40.6
31.5
40.0
31.3
39.6
30.7
39.4
30.6'
39.3
31.3
39.4
31.3
39.7
38.9
tt.O'
8.8
14.3
30.(y
40.4'
12.3'
9.3
14.4
30.(K
41.2'
11.9'
9.4
14.7
29.5'
41.7'
n ^
8.9
14.9
30.3'
41.2
n.O'
8.5
15.0
31.8'
42.1
12.2'
8.4
15.1
35.6'
44.0
12.2'
8.3
15.5
39.3'
46.9
11.7'
7.9'
15.8
46.6
11.4
7.9
16.0
37.7'
46.8
11.0'
7.7
16.3
38.7'
47.1
10.5'
7.8
16.4
39.2'
47.4
10.3
7.8
16.7
40.3
6.<y
5.6f
1. Data are prorated averages of Wednesday estimates for domestically chartered insured banks, based on weekly sample reports and quarterly universe
reports. For foreign-related institutions, data are averages of month-end estimates
based on weekly reports from large U.S. agencies and branches and quarterly
reports from all U.S. agencies and branches, New York investment companies
majority owned by foreign banks, and Edge Act corporations owned by domestically chartered and foreign banks.
11.0
36.&
2. Excludes loans to commercial banks in the United States.
3. Includes nonfinancial commercial paper held.
4. United States includes the 50 states and the District of Columbia.
NOTE. These data also appear in the Board's G.7 (407) release. For address, see
inside front cover.
Commercial Banking Institutions
1.24
A17
MAJOR NONDEPOSIT F U N D S OF COMMERCIAL BANKS'
Monthly averages, billions of dollars
1985
1984
Source
June
Total nondeposit funds2
Seasonally adjusted
Not seasonally adjusted
Federal funds, RPs, and other 3
borrowings from nonbanks
3 Seasonally adjusted
4 Not seasonally adjusted
5 Net balances due to foreign-related
institutions, not seasonally
adjusted
1
2
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
99.4
101.8
100.3
99.9
103.5
105.7
106.5
107.0
107.9
109.6
112.0
117.5
108.5
111.1
102.3'
104.6
113.8'
117.2'
116.8'
119.2'
105.0
108.2'
111.6
116.8
133.2
135.7
134.5
134.0
139.3
141.5
141.6
142.1
141.4
143.1
145.0
150.5
140.5
143.1
138.7
141.1
146.7
150.2
147.2
149.6
138.7
141.9
142.0
147.2
-33.9
-34.2
-35.8
-35.1
-33.5
-33.1
-32.0
-36.5
-33.0'
-30.4'
-33.7'
-30.4
-32.9
73.8
40.9
-33.1
71.2
38.1
-35.0
72.8
37.7
-35.2
71.5
36.3
-34.2
69.8
35.6
-32.7
68.3
35.6
-31.4
69.0
37.6
-35.0
71.4
36.5
-31.7'
70.5'
38.8
-29.7'
71.4'
41.7
-32.6
75.0
42.4
-29.8
74.5
44.7
-.9
50.7
49.7
-1.1
51.9
50.8
-.8
51.6
50.8
.1
51.7
51.8
.7
50.8
51.5
-.4
50.7
50.4
-.6
52.0
51.4
-1.5'
52.9
51.4'
-1.2'
53.9'
52.7
-.7'
53.3
52.5
-1.1'
51.7
50.6'
-.5
52.4
51.8
76.1
76.0
77.5
74.6
79.9
79.6
81.4
79.4
82.0
81.2
84.0
87.0
81.1
81.1
82.3
82.2
90.1
91.1
92.0
92.0
85.4
86.0
85.5
88.3
14.1
12.4
12.8
11.9
13.1
10.3
16.0
17.5
11.0
8.0
17.3
10.4
16.1
12.5
14.7
18.5
13.0
15.8
11.8
12.8
14.6
15.4'
22.6
20.9
309.9
309.0
314.8
313.7
314.2
315.6
315.4
316.8
321.4
322.2
323.0
322.9
325.8
327.3
324.8
325.6
325.4
324.9
329.9
330.3
332.5'
330.0'
331.0
328.9
MEMO
6 Domestically chartered banks' net
positions with own foreign
branches,4 not seasonally
adjusted
7 Gross due from balances
8 Gross due to balances
9 Foreign-related institutions' net
positions with directly related
institutions, not seasonally
adjusted5
10 Gross due from balances
11 Gross due to balances
Security RP borrowings
12 Seasonally adjusted®
13 Not seasonally adjusted
U.S. Treasury demand balances7
14 Seasonally adjusted
15 Not seasonally adjusted
Time deposits, $100,000 or more8
16 Seasonally adjusted
17 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. Includes averages of
Wednesday data for domestically chartered banks and averages of current and
previous month-end data for foreign-related institutions.
3. Other borrowings are borrowings on any instrument, such as a promissory
note or due bill, given for the purpose of borrowing money for the banking
business. This includes borrowings from Federal Reserve Banks and from foreign
banks, term federal funds, overdrawn due from bank balances, loan RPs, and
participations in pooled loans.
4. Averages of daily figures for member and nonmember banks.
5. Averages of daily data.
6. Based on daily average data reported by 122 large banks.
7. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
8. Averages of Wednesday figures.
NOTE. These data also appear in the Board's G. 10 (411) release. For address see
inside front cover.
A18
1.25
DomesticNonfinancialStatistics • August 1985
ASSETS A N D LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Last-Wednesday-of-Month Series
Billions of dollars
1984
1985
Account
July
Aug.
Sept.
Oct.
Nov.
Dec.
1,765.3
378.2
246.5
131.7
15.7
1,371.4
118.6
1,252.8
454.4
356.8
235.2
206.5
1,784.5
376.2
243.5
132.7
20.0
1,388.4
127.1
1,261.2
455.2
361.8
240.0
204.2
1,798.3
377.2
243.4
133.8
20.9
1,400.2
123.3
1,276.9
459.8
366.6
243.3
207.3
1,822.7
375.2
241.2
134.0
22.5
1,424.9
126.1
1,298.8
467.7
369.8
247.1
214.2
1,822.7
374.4
240.4
133.9
21.9
1,426.4
122.6
1,303.8
468.7
374.4
249.6
211.1
1,864.0
377.5
242.5
134.9
22.9
1,463.7
126.9
1,336.8
476.8
377.7
255.5
226.8
179.1
19.4
21.6
60.2
177.3
17.4
22.2
60.7
181.0
18.0
21.6
63.2
188.0
18.1
21.4
70.2
188.4
20.4
23.9
66.5
201.9
20.5
23.3
75.9
187.8
20.9
21.9
66.9
29.3
48.6
29.5
47.5
30.8
47.4
32.0
46.3
30.9
46.7
34.5
47.7
30^
47.3
Jan.
Feb.
Mar.
Apr.
May
1,873.4'
382.0
248.0
134.1'
27.6
1,463.7'
128.6
1,335.1'
476.5'
382.5'
258.1
218.0'
1,880.5'
383.3'
250.9
132.5'
23.7
1,473.5'
125.9'
1,347.6
482.7
386.0'
260.4
218.4'
1,895.9
383.4
250.0
133.4
23.5
1,489.0
130.7
1,358.3
481.5
389.8
264.2
222.8
1,905.0
389.7
254.0
135.7
23.5
1,491.8
123.8
1,368.0
482.8
394.8
267.4
223.0
189.2
19.6
21.8
68.8
183.4'
19.8'
21.3
63.9
187.3
22.9
21.3
64.1
201.4
20.7
23.3
76.5
32.2
46.7
31.6
46.8'
30.1
48.9
34.6
46.4
ALL COMMERCIAL BANKING
INSTITUTIONS1
1
2
3
4
5
6
V
8
9
10
11
12
Loans and securities
Investment securities
U.S. government securities
Other
Trading account assets
Total loans
Interbank loans
Loans excluding interbank
Commercial and industrial
Real estate
Individual
All other
Total cash assets
Reserves with Federal Reserve Banks
Cash in vault
lb Cash items in process of collection . . .
17
Demand balances at U.S. depository
institutions
Other cash assets
18
13
14
15
1,853.8'
381.(K
244.9'
136.1'
24.2
1,448.7'
125.2
1,323.4'
469.8'
380.2'
257.4
216.1
19
Other assets
191.3
190.6
196.8
201.6
190.1
196.8
191.7'
195.4'
188.5'
188.7
183.9
20
Total assets/total liabilities and capital . . .
2,135.6
2,152.4
2,176.1
2,212.2
2,201.2
2,262.6
2,233.3'
2,257.9'
2,252.4'
2,272.0
2,290.4
21
22
23
24
25
26
27
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
1,535.5
441.4
368.5
725.6
292.0
167.9
140.2
1,539.0
440.0
365.1
734.0
301.5
169.7
142.1
1,549.9
442.3
364.9
742.7
307.1
172.9
146.2
1,578.9
462.7
371.1
745.0
314.3
175.1
144.0
1,578.2
453.1
378.1
747.0
298.8
179.4
144.8
1,631.2
491.1
386.3
753.8
304.1
181.1
146.2
1,604.3'
456.8'
400.0
747.5
306.5'
173.7'
148.8'
1,617.8'
459.2'
406.8
751.8
308.8'
182.2'
149.2'
1,625.6'
457.6
409.8
758.2'
300.6'
176.91149.2'
1,636.4
465.3
409.4
761.7
309.8
175.3
150.5
1,659.2
479.9
418.0
761.2
304.9
175.9
150.4
255.6
255.1
255.4
256.3
255.2
256.9
261.9'
269.5
268.4
266.4
268.9
138.3
141.0
142.7
141.5
141.1
143.4
143.2'
140.2'
138.7'
140.6
144.2
1,676.7
371.2
241.4
129.8
15.7
1,289.8
95.2
1,194.6
414.0
353.1
235.1
192.4
1,688.4
369.1
238.5
130.7
20.0
1,299.4
97.6
1,201.8
414.5
358.0
239.8
189.6
1,707.4
369.8
238.4
131.5
20.9
1,316.6
99.9
1,216.7
418.7
362.3
243.1
192.5
1,728.5
367.9
236.1
131.8
22.5
1,338.0
103.3
1,234.7
423.0
365.5
246.9
199.3
1,726.7
367.5
235.8
131.6
21.9
1,337.3
96.1
1,241.2
424.7
369.1
249.4
198.0
1,765.4
370.5
237.9
132.6
22.9
1,372.1
102.8
1,269.3
430.2
372.1
255.3
211.7
1,759.6
373.7
240.2
133.5
24.2
1,361.7
100.6
1,261.2
425.7
375.1
257.2
203.1
1,774.6
374.7
243.2
131.5
27.6
1,372.3
100.9
1,271.4
431.5
377.3
257.9
204.8
1,781.9
376.6
246.6
130.0
23.7
1,381.6
99.9
1,281.6
435.5
380.9
260.2
205.0
1,796.4
376.7
246.0
130.6
23.5
1,3%.2
103.1
1,293.1
436.0
384.5
263.9
208.7
1,809.1
383.2
250.3
132.9
23.5
1,402.5
100.4
1,302.1
435.9
389.4
267.1
209.6
166.7
18.0
21.6
60.1
165.9
16.7
22.2
60.5
169.0
17.4
21.6
63.0
176.6
17.1
21.4
69.9
176.8
19.7
23.9
66.3
190.3
19.2
23.3
75.6
175.7
20.2
21.9
66.7
177.8
18.7
21.8
68.5
172.5
19.2
21.3
63.7
175.7
22.3
21.3
63.9
190.4
19.6
23.2
76.2
27.9
39.2
28.2
38.3
29.4
37.7
30.7
37.5
29.4
37.5
32.9
39.3
29.5
37.5
30.9
37.9
30.3
38.0
28.7
39.5
33.2
38.2
MEMO
28
29
U.S. government securities (including
trading account)
Other securities (including trading
account)
DOMESTICALLY CHARTERED
COMMERCIAL BANKS3
30
31
32
33
34
35
36
3/
38
39
40
41
Loans and securities
Investment securities
U.S. government securities
Other
Trading account assets
Total loans
Interbank loans
Loans excluding interbank
Commercial and industrial
Real estate
Individual
All other
Total cash assets
Reserves with Federal Reserve Banks
Cash in vault
Cash items in process of collection . . .
Demand balances at U.S. depository
institutions
47
Other cash assets
42
43
44
45
46
48
Other assets
138.9
140.6
141.2
147.9
139.7
142.1
137.6
139.0
137.2
137.6
132.1
49
Total assets/total liabilities and capital...
1,982.3
1,995.0
2,017.6
2,053.1
2,043.2
2,097.8
2,072.9
2,091.4
2,091.7
2,109.7
2,131.6
50
51
52
53
54
55
56
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
1,495.4
434.8
367.5
693.0
228.0
121.5
137.4
1,500.3
433.7
364.2
702.4
236.0
119.3
139.3
1,510.9
435.9
363.9
711.1
243.5
119.7
143.4
1,539.1
456.2
370.1
712.8
251.3
120.5
142.1
1,538.0
446.8
377.1
714.1
240.9
122.3
142.0
1,587.8
484.5
385.2
718.1
243.1
123.5
143.4
1,561.8
450.6
398.9
712.3
246.5
118.4
146.1
1,573.7
452.9
405.6
715.2
247.0
124.2
146.5
1,580.5
451.4
408.6
720.5
239.9
124.7
146.6
1,591.7
458.9
408.3
724.5
247.9
122.3
147.8
1,616.0
473.5
416.7
725.8
245.6
122.3
147.7
1. Commercial banking institutions include insured domestically chartered
commercial banks, branches and agencies of foreign banks, Edge Act and
Agreement corporations, and New York State foreign investment corporations.
2. Data are not comparable with those of later dates. See the Announcements
section of the March 1985 BULLETIN for a description of the differences.
3. Insured domestically chartered commercial banks include all member banks
and insured nonmember banks.
NOTE. Figures are partly estimated. They include all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries. Loan and securities data for domestically chartered commercial banks are estimates for the last
Wednesday of the month based on a sample of weekly reporting banks and
quarter-end condition report data. Data for other banking institutions are estimates made for the last Wednesday of the month based on a weekly reporting
sample of foreign-related institutions and quarter-end condition reports.
Weekly Reporting Commercial Banks
1.26
A19
ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1.4 Billion or More on
December 31, 1982, Assets and Liabilities
Millions of dollars, Wednesday figures
Apr. 10
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
Cash and balances due from depository institutions
Total loans, leases and securities, net
U.S. Treasury and government agency
Trading account
Investment account, by maturity
One year or less
Over one through five years
Over five years
Other securities
Trading account
Investment account
States and political subdivisions, by maturity
One year or less
Over one year
Other bonds, corporate stocks, and securities
Other trading account assets
Federal funds sold1
To commercial banks
To nonbank brokers and dealers in securities
To others
Other loans and leases, gross2
Other loans, gross2
Commercial and industrial2
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
Real estate loans2
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions .
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions
All other
Lease financing receivables
LESS: Unearned income
Loan and lease reserve 2
Other loans and leases, net 2
All other assets
Total assets
Demand deposits
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Depository institutions in United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Transaction balances other than demand deposits
Nontransaction balances
Individuals, partnerships and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Foreign governments, official institutions and b a n k s . . .
Liabilities for borrowed money
Borrowings from Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money 3
Other liabilities and subordinated note and debentures.
Total liabilities
Residual (total assets minus total liabilities)4
MEMO
67
68
69
70
71
72
73
3
Total loans and leases (gross) and investments adjusted .
Total loans and leases (gross) adjusted 2 ' 5
Time deposits in amounts of $100,000 or more
Loans sold outright to affiliates—total6
Commercial and industrial
Other
Nontransaction savings deposits (including MMDAs)
Apr. 24
May 1'
May 8'
May 15
May 22
May 29
June 5
92,703'
97,789
89,499
105,066
90,371
98,314
94,043
98,116
97,263
832,786'
838,015'
834,784'
846,176
838,925
853,845
845,013
838,882
857,749
86,111
16,040
70,071
21,579
34,884
13,608
45,814
2,534
43,280
38,518
4,527
33,991
4,762
2,980
56,572
40,639
11,091
4,842
658,002'
644,71(K
254,091'
3,228'
250,862'
245,228'
5,634
165,032'
116,698'
39,380'
9,766'
5,711'
23,902'
15,352
7,036
29,779
3,923'
13,418'
13,292'
5,196'
11,497
641,309'
131,692'
86,882
17,360
69,522
21,132
34,772
13,618
48,792
5,131
43,661
38,865
4,728
34,137
4,796
2,905
52,697
35,766'
12,052'
4,879
663,476'
650,188'
254,572'
2,838'
251,734'
246,224'
5,510
165,363'
117,581'
39,529'
10,209'
5,412'
23,908'
18,438
7,086
29,750
3,908'
13,960r
13,288'
5,199'
11,537
646,740'
130,992'
85,471
16,344
69,127
20,753
34,074
14,300
48,785
4,862
43,922
38,959
4,723
34,236
4,963
2,309
53,292
36,430
10,775
6,086
661,687'
648,218'
253,616'
2,525'
251,091'
245,610'
5,481
165,822'
118,230'
39,705'
10,866'
5,176'
23,663'
16,663
7,119
29,880
3,892'
13,291'
13,468'
5,215'
11,544
644,927'
129,04c
84,150
14,750
69,401
20,860
34,520
14,020
48,909
5,112
43,798
38,903
4,851
34,052
4,894
3,101
57,708
40,102
12,224
5,381
669,154
655,640
254,742
2,582
252,160
246,763
5,397
166,245
118,847
41,561
11,865
5,356
24,340
18,737
7,111
29,949
3,793
14,655
13,514
5,175
11,672
652,308
130,441
85,607
15,533
70,073
20,902
35,246
13,925
48,533
4,263
44,270
39,213
4,998
34,214
5,057
3,061
51,816
35,075
10,904
5,837
666,828
653,281
255,645
2,234
253,410
248,010
5,400
166,321
118,991
40,810
11,479
5,571
23,760
17,502
7,130
29,989
3,708
13,184
13,546
5,165
11,755
649,908
127,803
87,900
15,994
71,906
20,862
37,118
13,925
48,492
4,393
44,099
39,323
5,000
34,323
4,776
3,371
59,562
40,608
12,887
6,067
671,472
657,914
254,734
2,256
252,478
246,988
5,490
167,193
119,240
40,875
11,298
5,528
24,049
20,504
7,191
30,057
4,145
13,976
13,557
5,179
11,773
654,520
128,725
88,037
15,854
72,183
20,398
37,050
14,734
48,892
4,475
44,416
39,398
4,946
34,452
5,018
2,866
54,476
37,052
11,605
5,818
667,718
654,056
254,230
2,200
252,030
246,584
5,446
167,195
119,534
40,569
11,228
5,489
23,852
17,871
7,208
30,051
3,820
13,577
13,662
5,190
11,786
650,742
127,464
87,417
14,918
72,499
20,654
37,133
14,713
49,552
4,984
44,568
39,566
5,220
34,346
5,002
3,560
50,918
34,128
11,298
5,491
664,387
650,785
253,462
2,287
251,174
246,161
5,014
167,326
119,981
39,982
10,778
5,165
24,039
14,924
7,211
30,010
3,747
14,142
13,601
5,194
11,759
647,434
124,269
88,146
16,327
71,819
20,684
35,640
15,494
49,094
4,304
44,790
39,822
5,255
34,567
4,968
4,205
63,878
44,665
12,347
6,866
669,519
655,835
253,973
2,448
251,524
246,426
5,098
167,290
120,228
40,146
10,446
5,384
24,316
19,466
7,238
29,913
3,602
13,980
13,683
5,147
11,946
652,425
131,760
1,057,181' 1,066,796' L,053,32Y 1,081,684 1,057,099 1,080,883 1,066,521 1,061,267 1,086,772
204,478
154,054
6,184
1,491
25,278
5,719
1,175
10,578
36,937
463,962
427,918
23,978
334
9,215
2,518
203,528
700
15,936
186,893
98,620
187,809'
144,092'
5,074
2,471
20,695
5,496
981
9,000
39,160'
465,372
429,974'
23,279
350
9,251'
2,517
194,180
3,175
92
190,913
96,568'
192,691'
147,207'
5,659
1,874
23,570
5,122
902
8,357
40,580'
464,520
428,763'
23,501
316
9,352'
2,588
200,800
925
13,583
186,291
94,334'
182,666'
138,963'
5,256
3,555
20,891'
4,921
937
8,141'
37,741'
464,677'
428,242'
24,235
328'
9,346'
2,525
198,541
977
15,439
182,125
95,839'
983,089'
992,925'
979,464' 1,007,525
74,092
73,870
73,860
74,159
799,073'
664,168'
156,014'
2,862
1,967
894
178,6%
808,777'
670,199'
155,606'
2,834
1,933
901
177,396
804,246'
667,682'
156,621'
2,800
1,902
898
176,467
811,056
674,895
155,397
2,805
1,922
882
176,762
1. Includes securities purchased under agreements to resell.
2. Levels of major loan items were affected by the Sept. 26, 1984 transaction
between Continental Illinois National Bank and the Federal Deposit Insurance
Corporation. For details see the H.4.2 statistical release dated Oct. 5, 1984.
3. Includes federal funds purchased and securities sold under agreements to
repurchase; for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31, 1977, see table 1.13.
4. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.
Apr. 17
197,552
148,312
5,378
4,133
23,523
6,041
787
9,378
38,887
469,398
433,058
24,219
340
9,382
2,398
211,071
2,919
2,548
205,604
94,851
200,354
150,541
5,735
3,388
24,248
5,813
1,089
9,539
36,905
466,160
429,366
24,678
345
9,321
2,450
207,705
830
12,104
194,771
95,472
184,566
140,601
4,809
2,271
22,268
5,449
789
8,379
36,408
467,152
429,848
25,051
357
9,510
2,386
208,895
3,831
11,126
193,938
95,200
192,628
146,219
5,169
1,047
25,251
5,347
813
8,780
36,396
467,570
430,714
24,813
376
9,360
2,307
195,705
730
7,575
187,400
94,613
982,781 1,006,596
992,222
986,913 1,011,758
74,318
74,287
74,299
74,354
75,014
809,291
672,090
155,906
2,768
1,875
894
177,377
818,891
679,128
155,579
2,605
1,786
820
178,723
813,709
673,914
155,967
2,586
1,758
827
179,052
810,928
670,398
155,607
2,601
1,721
880
179,792
819,731
678,286
155,240
2,448
1,591
857
181,859
182,466
138,617
4,718
2,595
21,729
5,712
918
8,179
37,129
465,146
428,642
24,478
338
9,230
2,458
204,436
70
15,946
188,420
93,604
5. Exclusive of loans and federal funds transactions with domestic commercial
banks.
6. Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
NOTE. These data also appear in the Board's H.4.2 (504) release. For address,
see inside front cover.
A20
1.28
DomesticNonfinancialStatistics • August 1985
LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures
1985
Account
1 Cash and balances due from depository institutions
2 Total loans, leases and securities, net1
Securities
3
4
5 Investment account, by maturity
One year or less
6
7
Over one through five years
Over five years
8
9
10
11 Investment account
12
States and political subdivisions, by maturity
13
One year or less
14
Over one year
15
Other bonds, corporate stocks and securities
16
Loans and leases
17 Federal funds sold3
18 To commercial banks
19 To nonbank brokers and dealers in securities
20 To others
21 Other loans and leases, gross
22 Other loans, gross
23
Commercial and industrial
24
Bankers acceptances and commercial paper
25
All other
26
U.S. addressees
27
Non-U.S. addressees
28
Real estate loans
29
To individuals for personal expenditures
30
To depository and financial institutions
31
Commercial banks in the United States
32
Banks in foreign countries
33
Nonbank depository and other financial institutions
34
For purchasing and carrying securities
35
To finance agricultural production
36
To states and political subdivisions
37
To foreign governments and official institutions
38
All other
39 Lease financing receivables
40 LESS: Unearned income
41
Loan and lease reserve
42 Other loans and leases, net
43 All other assets4
44 Total assets
Deposits
45 Demand deposits
46 Individuals, partnerships, and corporations
47 States and political subdivisions
48 U.S. government
49 Depository institutions in the United States
50 Banks in foreign countries
51 Foreign governments and official institutions
52 Certified and officers' checks
53 Transaction balances other than demand deposits
ATS, NOW, Super NOW, telephone transfers)
54 Nontransaction balances
55 Individuals, partnerships and corporations
56 States and political subdivisions
57 U.S. government
58 Depository institutions in the United States
59 Foreign governments, official institutions and banks
60 Liabilities for borrowed money
61
62 Treasury tax-and-loan notes
63 All other liabilities for borrowed money5
64 Other liabilities and subordinated note and debentures
65 Total liabilities
66 Residual (total assets minus total liabilities)6
Apr. 10
Apr. 17
Apr. 24
22,600
175,284
22,779
175,425
13,335
2,321
9,280
1,734
May 1
May 8
20,337
174,972
27,343
183,291
23,542
178,735
25,981
184,914
24,995
179,165
24,824
176,578
24,404
183,282
12,557
1,847
8,895
1,815
12,210
1,803
8,652
1,754
12,020
1,683
8,546
1,790
12,295
1,664
8,840
1,791
12,639
1,681
9,217
1,741
12,383
1,428
9,218
1,737
12,352
1,416
9,222
1,713
10,657
1,304
7,450
1,903
9,231
8,354
910
7,444
877
9,489
8,598
1,082
7,516
890
9,530
8,612
1,092
7,520
918
9,560
8,603
1,227
7,376
957
9,674
8,643
1,227
7,416
1,031
9,739
8,689
1,243
7,446
1,050
9,764
8,670
1,119
7,550
1,094
9,769
8,671
1,248
7,423
1,098
9,934
8,805
1,236
7,570
1,129
21,640
13,469
5,330
2,841
135,944
133,671
61,210
798
60,412
59,729
683
25,359
16,357
11,129
1,920
2,035
7,174
7,064
487
7,874
900
3,289
2,273
1,470
3,396
131,078
66,9%
264,880
19,090
9,548
6,533
3,008
139,156
136,878
61,926
700
61,226
60,556
670
25,392
16,481
11,215
2,153
1,884
7,179
9,276
478
7,868
918
3,324
2,278
1,466
3,400
134,289
70,312
268,516
20,593
11,092
5,316
4,185
137,506
135,044
61,240
614
60,626
59,978
648
25,623
16,577
11,101
2,255
1,633
7,213
7,956
444
7,894
925
3,284
2,462
1,470
3,396
132,640
67,797
263,106
24,788
14,804
6,759
3,225
141,783
139,320
62,063
665
61,398
60,752
646
25,697
16,682
12,329
2,774
1,919
7,636
9,766
435
7,938
839
3,569
2,463
1,441
3,418
136,924
66,731
277,366
21,200
11,461
5,744
3,9%
140,473'
138,007'
62,552
656
61,897
61,227
670
25,800
16,789r
11,938
2,493'
2,169'
7,276
8,680
435
7,944'
8^
3,051'
2,466
1,446
3,462
135,566'
64,733'
267,010'
24,037
12,137
7,818
4,082
143,419
140,950
62,048
712
61,336
60,611
725
25,986
16,770
11,607
2,188
2,013
7,406
11,397
426
7,973
1,191
3,552
2,468
1,450
3,469
138,499
66,882
277,777
21,578
11,736
5,694
4,147
140,365
137,781
61,765
720
61,045
60,350
695
26,043
16,795
11,704
2,150
2,025
7,528
7,704
439
8,009
891
3,431
2,583
1,455
3,470
135,440
66,732
270,892
21,590
11,282
6,289
4,019
137,789
135,275
61,419
755
60,664
59,956
708
26,030
16,870
11,506
2,297
1,743
7,466
6,551
434
7,911
848
3,704
2,514
1,453
3,469
132,866
64,185
265,587
25,905
13,890
7,081
4,934
141,727
139,209
61,794
813
60,981
60,273
708
26,012
16,853
11,502
2,346
1,892
7,264
10,446
421
7,869
769
3,543
2,518
1,419
3,521
136,787
69,640
277,326
46,144
31,702
657
428
4,127
4,226
811
4,192
46,230
32,036
704
270
5,209
3,802
721
3,487
45,098
30,916
876
611
4,520
3,662
756
3,756
54,385
37,065
926
177
5,871
4,323
1,003
5,020
44,634'
29,691'
780'
537
4,624'
4,425'
746'
3,832
52,418
34,536
1,431
646
5,701
4,577
933
4,594
47,262
31,708
835
513
5,176
4,268
612
4,149
48,147
32,921
771
120
5,303
4,110
640
4,283
48,651
32,183
1,037
825
4,938
4,674
582
4,413
4,233
84,642
77,038
3,860
61
2,360
1,324
64,412
950
9
63,453
41,864
241,296
23,584
4,486
84,820
76,963
4,149
60
2,324
1,324
67,946
4,124
84,963
76,977
4,197
67
2,418
1,304
63,121
3,958
85,608
77,568
4,208
66
2,469
1,298
66,421
3,919
85,688
77,508
4,440
66
2,454
1,220
68,889'
3,933
86,125
77,997
4,457
76
2,404
1,191
70,348
3,864
85,700
77,711
4,459
78
2,380
1,071
62,852
3,876
64,069
41,535
245,017
23,499
4,129
58,992
42,331
239,637
23,469
4,306
62,115
43,468
253,840
23,526
4,144
64,744'
40,341'
243,47<K
23,539
2,895
67,454
41,390
254,216
23,562
3,850
85,950
77,717
4,553
80
2,436
1,163
69,653
2,615
2,486
64,552
40,529
247,244
23,647
1,746
61,107
41,485
242,048
23,538
4,044
86,158
78,378
4,373
50
2,336
1,020
73,830
1 980
645
71,205
40,887
253,570
23,757
164,761
142,195
32,582
168,590
146,544
32,981
166,491
144,752
33,441
170,573
148,993
33,546
169,689'
147,720'
33,842
175,509
153,131
34,001
170,204
148,056
33,829
167,922
145,800
33,267
171,986
151,395
33,500
May 15
May 22
May 29
June 5
MEMO
67 Total loans and leases (gross) and investments
adjusted1,7
68 Total loans and leases (gross) adjusted7
69 Time deposits in amounts of $100,000 or more
1. Excludes trading account securities.
2. Not available due to confidentiality.
3. Includes securities purchased under agreements to resell.
4. Includes trading account securities.
5. Includes federal funds purchased and securities sold under agreements to
repurchase.
6. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
7. Exclusive of loans and federal funds transactions with domestic commercial
banks.
NOTE. These data also appear in the Board's H.4.2 (504) release. For address,
see inside front cover.
Weekly Reporting Commercial Banks
1.30
A21
LARGE WEEKLY REPORTING U.S. BRANCHES A N D AGENCIES OF FOREIGN BANKS WITH ASSETS OF
$750 MILLION OR MORE ON J U N E 30, 1980 Assets and Liabilities A
Millions of dollars, Wednesday figures
1985
Account
Apr. 10
1
2
3
4
5
6
7
8
9
10
Cash and due from depository institutions.
Total loans and securities
U.S. Treasury and govt, agency securities
Other securities
Federal funds sold1
To commercial banks in the United States
To others
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial
paper
11
All other
12
U.S. addressees
Non-U.S. addressees
13
14 To financial institutions
15
Commercial banks in the United States .
16
Banks in foreign countries
17
Nonbank financial institutions
18 To foreign govts, and official institutions..
19 For purchasing and carrying securities ..
20 All other
21 Other assets (claims on nonrelated parties)..
22 Net due from related institutions
23 Total assets
24 Deposits or credit balances due to other
than directly related institutions
25 Credit balances
26 Demand deposits
27
Individuals, partnerships, and
corporations
28
Other
29 Time and savings deposits
30
Individuals, partnerships, and
corporations
31
Other
32 Borrowings from other than directly
related institutions
33 Federal funds purchased2
34
From commercial banks in the
United States
35
From others
36 Other liabilities for borrowed money....
37
To commercial banks in the
United States
38
To others
39 Other liabilities to nonrelated parties
40 Net due to related institutions
41 Total liabilities
MEMO
42 Total loans (gross) and securities adjusted3
43 Total loans (gross) adjusted3
Apr. 17
Apr. 24
May 8
May 15
May 22
May 29
June 5
6,751
44,820
3,461
1,575
4,002
3,611
390
35,782
21,328
6,466
43,667
3,620
1,626
3,431
3,113
318
34,990
20,566
6,621
46,339
3,431
1,629
5,262
4,916
346
36,016
20,620
6,686'
45,826
3,379
1,674
4,911
4,473
438
35,862
20,899
6,950'
44,862
3,439
1,642
4,246
3,837
409
35,535
20,639
6,606
44,426
3,375
1,629
3,302
3,066
236
36,120
20,670
6,436
45,989
3,324
1,630
4,389
4,075
314
36,645
21,351
6,302
44,614
3,143
1,632
3,925
3,553
372
35,914
21,261
6,969
45,283
3,269
1,687
3,772
3,385
388
36,554
21,697
1,927
19,400
18,195
1,205
10,604
8,374
1,166
1,063
685
1,084
2,082
17,969
10,664
80,205
2,031
18,535
17,406
1,129
10,587
8,441
1,132
1,014
694
1,039
2,104
18,009
10,490
78,632
1,962
18,657
17,539
1,119
11,334
8,906
1,191
1,237
686
1,243
2,134
18,418
9,952
81,329
1,896
19,003
17,902
1,102
10,916
8,545
1,098
1,273
678
1,323
2,045
18,572
10,292
81,376'
1,776
18,863
17,743
1,119
10,832
8,552'
1,024'
1,255
680
1,275
2,108
18,734'
10,368'
80,914'
1,663
19,006
17,885
1,122
11,175
8,853
1,070
1,252
667
1,264
2,345
18,774
11,106
80,913
1,628
19,723
18,429
1,294
11,209
9,062
1,023
1,124
670
1,089
2,326
18,723
9,998
81,146
1,819
19,442
18,389
1,053
10,714
8,444
1,112
1,158
667
938
2,334
18,911
9,294
79,121
2,029
19,669
18,569
1,099
10,604
8,251
1,137
1,216
707
1,195
2,350
18,408
10,503
81,162
24,978
135
1,528
25,076
177
1,632
25,180
188
1,629
25,068'
139
1,817'
24,127'
135
1,581'
23,715
158
1,789
23,606
172
1,556
23,649
193
1,631
23,525
157
1,670
836
692
23,315
888
743
23,267
872
757
23,363
987'
830
23,112'
829'
752'
22,410'
877
912
21,768
843
714
21,878
866
765
21,825
854
816
21,699
18,783
4,532
18,648
4,619
18,764
4,599
18,334'
4,778
17,774'
4,636
17,274
4,493
17,458
4,420
17,390
4,435
16,969
4,370
29,532
12,547
28,641
11,481
29,207
11,704
29,706
12,474
29,874
12,484
30,695
13,093
30,230
12,384
27,894
10,645
30,664
13,598
10,237
2,310
16,985
9,218
2,263
17,159
9,659
2,045
17,502
9,966
2,507
17,232
10,166
2,318
17,390
11,103
1,990
17,603
10,313
2,071
17,846
8,425
2,220
17,249
11,340
2,258
17,066
15,823
1,162
19,689
6,006
80,205
15,934
1,225
19,786
5,130
78,632
16,256
1,246
20,277
6,665
81,329
16,006
1,226
20,514
6,088
81,376'
16,080
1,309
20,749
6,164'
80,914'
16,288
1,315
20,777
5,726
80,913
16,412
1,434
20,659
6,651
81,146
16,044
1,205
20,866
6,712
79,121
15,850
1,215
20,317
6,657
81,162
32,835
27,798
32,112
26,867
32,517
27,456
32,807
27,755
32,472'
27,391'
32,506
27,502
32,851
27,897
32,617
27,842
33,646
28,690
• Levels of many asset and liability items were revised beginning Oct. 31,
1984. For details, see the H.4.2 (504) statistical release dated Nov. 23, 1984.
1. Includes securities purchased under agreements to resell.
2. Includes securities sold under agreements to repurchase.
May 1
3. Exclusive of loans to and federal funds sold to commercial banks in the
United States.
NOTE. These data also appear in the Board's H.4.2 (504) release. For address,
see inside front cover.
A22
1.31
DomesticNonfinancialStatistics • August 1985
GROSS D E M A N D DEPOSITS Individuals, Partnerships, and Corporations'
Billions of dollars, estimated daily-average balances
Commercial banks
Type of holder
19792
Dec.
1980
Dec.
1981
Dec.
1983
1982
Dec.
Sept.
1984
Dec.
Mar.
June
Sept.
Dec.
1 All holders—Individuals, partnerships, and
corporations
302.3
315.5
288.9
291.8
280.3
293.5
279.3
285.8
284.7
304.5
2
3
4
5
6
27.1
157.7
99.2
3.1
15.1
29.8
162.8
102.4
3.3
17.2
28.0
154.8
86.6
2.9
16.7
35.4
150.5
85.9
3.0
17.0
32.1
150.2
77.9
2.9
17.1
32.8
161.1
78.5
3.3
17.8
31.7
150.3
78.1
3.3
15.9
31.7
154.9
78.3
3.4
17.4
31.3
154.8
78.4
3.3
16.8
33.0
166.3
81.7
3.6
19.9
Financial business
Nonfinancial business
Consumer
Foreign
Other
Weekly reporting banks
19793
Dec.
1980
Dec.
1981
Dec.
1983
1982
Dec.
Sept.
7 AU holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
Dec.4
Mar.
June
Sept.
Dec.
139.3
147.4
137.5
144.2
136.3
146.2
139.2
145.3
145.3
157.1
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
26.7
74.3
31.9
2.9
8.4
23.6
72.9
28.1
2.8
8.9
24.2
79.8
29.7
3.1
9.3
23.5
76.4
28.4
3.2
7.7
23.6
79.7
29.9
3.2
8.9
23.7
79.2
29.8
3.2
9.3
25.3
87.1
30.5
3.4
10.9
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.
3. 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
1984
exceeding $750 million as of Dec. 31, 1977. 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.
4. In January 1984 the weekly reporting panel was revised; it now includes 168
banks. Beginning with March 1984, estimates are constructed on the basis of 92
sample banks and are not comparable with earlier data. Estimates in billions of
dollars for December 1983 based on the newly weekly reporting panel are:
financial business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1;
other, 9.5.
Financial Markets
1.32
A23
COMMERCIAL PAPER A N D BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
19843
1980
Dec.
1979'
Dec.
Instrument
1981
Dec.
1982
Dec.2
1983
Dec.
Nov.
1985
Dec.
Jan.
Feb.
Mar.
Apr.
Commercial paper (seasonally adjusted unless noted otherwise)
1 AU issuers
2
3
4
5
6
Financial companies4 5
Dealer-placed paper
Total
Bank-related (not seasonally
adjusted)
Directly placed paper6
Total
Bank-related (not seasonally
adjusted)
Nonfinancial companies7
112,803
124,374
165,829
166,436
188,312
235,363
239,117
245,322
247,095
250,575
255,236
17,359
19,599
30,333
34,605
44,622
55,176
56,917
59,713
60,186
60,895
63,405
2,784
3,561
6,045
2,516
2,441
1,996
2,035
2,137
2,265
2,304
2,180
64,757
67,854
81,660
84,393
96,918
109,419
110,474
113,101
114,824
118,029
117,841
17,598
30,687
22,382
36,921
26,914
53,836
32,034
47,437
35,566
46,772
40,185
70,768
42,105
71,726
43,046
72,508
42,759
72,085
43,334
71,651
42,405
73,990
Bankers dollar acceptances (not seasonally adjusted)8
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
45,321
54,744
69,226
79,543
78,309
75,179
75,470
72,273
76,109
73,726
72,825
9,865
8,327
1,538
10,564
8,963
1,601
10,857
9,743
1,115
10,910
9,471
1,439
9,355
8,125
1,230
10,397
9,113
1,284
10,255
9,065
1,191
10,060
8,839
1,220
10,623
9,726
897
10,473
9,166
1,340
9,666
8,263
1,403
704
1,382
33,370
776
1,791
41,614
195
1,442
56,731
1,480
949
66,204
418
729
68,225
0
615
64,167
0
671
64,543
0
679
61,603
0
761
64,779
0
737
65,865
0
728
65,965
10,270
9,640
25,411
11,776
12,712
30,257
14,765
15,400
39,060
17,683
16,328
45,531
15,649
16,880
45,781
16,433
15,849
42,897
16,975
15,859
42,635
16,733
15,445
40,095
17,115
15,881
43,113
16,124
15,179
42,423'
16,417
14,875
41,533
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. Correction of a previous misclassification of paper by a reporter has created
a break in the series beginning December 1983. The correction adds some paper to
nonfinancial and to dealer-placed financial paper.
4. 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.
5. Includes all financial company paper sold by dealers in the open market.
6. As reported by financial companies that place their paper directly with
investors.
7. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
8. Beginning October 1984, the number of respondents in the bankers acceptance survey will be reduced from 340 to 160 institutions—those with $50 million or
more in total acceptances. The new reporting group accounts for over 95 percent
of total acceptances activity.
PRIME RATE CHARGED BY B A N K S on Short-Term Business Loans
Percent per annum
Rate
Effective Date
Rate
10.50
11.00
11.00
1984—Oct. 17
29
Nov. 9
11.50
Dec. 20
12.50
12.00
11.75
11.25
10.75
1985—Jan. 15
May 20
June 18
10.50
10.00
9.50
28
12.00
12.50
13.00
12.75
Month
1983—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
1984—Jan..
Feb.
Mar.
NOTE. These data also appear in the Board's H.15 (519) release. For address,
see inside front cover.
Average
rate
11.16
10.98
10.50
10.50
10.50
10.50
10.50
10.89
11.00
11.00
11.00
11.00
11.00
11.00
11.21
Month
1984—Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1985—Jan.
Feb.
Mar.
Apr.,
May.
A24
1.35
DomesticNonfinancialStatistics • August 1985
INTEREST RATES Money and Capital Markets
Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.
1985
Instrument
1982
1983
1985, week ending
1984
Feb.
Mar.
Apr.
May
May 3
May 10
May 17
May 24
May 31
MONEY MARKET RATES
1 Federal funds1-2
123
2 Discount window 4borrowing
''
Commercial paper -5
3 1-month
4 3-month
5 6-month
Finance paper, directly placed4-5
6 1-month
7 3-month
8 6-month
Bankers acceptances5-6
9 3-month
10 6-month
Certificates of deposit, secondary market7
11 1-month
12 3-month
13 6-month
14 Eurodollar deposits,5 3-month8
U.S. Treasury bills 9
Secondary market
3-month
15
16
6-month
17
1-year
Auction average10
18
3-month
19
6-month
20
1-year
12.26
11.02
9.09
8.50
10.22
8.80
8.50
8.00
8.58
8.00
8.27
8.00
7.97
7.81
8.35
8.00
8.19
8.00
8.14
8.00
7.91
7.79
7.60
7.50
11.83
11.89
11.89
8.87
8.88
8.89
10.05
10.10
10.16
8.46
8.54
8.69
8.74
8.90
9.23
8.31
8.37
8.47
7.80
7.83
7.88
8.15
8.19
8.31
8.00
8.04
8.11
7.93
7.95
7.%
7.52
7.54
7.60
7.46
7.48
7.54
11.64
11.23
11.20
8.80
8.70
8.69
9.97
9.73
9.65
8.42
8.25
8.20
8.70
8.67
8.65
8.29
8.26
8.27
7.74
7.71
7.69
8.16
8.02
7.96
7.97
7.94
7.93
7.74
7.75
7.74
7.49
7.49
7.50
7.44
7.42
7.39
11.89
11.83
8.90
8.91
10.14
10.19
8.55
8.69
8.88
9.20
8.33
8.42
7.77
7.81
8.14
8.26
8.02
8.04
7.84
7.85
7.51
7.59
7.43
7.47
12.04
12.27
12.57
13.12
8.96
9.07
9.27
9.56
10.17
10.37
10.68
10.73
8.50
8.69
9.03
9.05
8.73
9.02
9.60
9.32
8.35
8.49
8.75
8.74
7.83
7.91
8.08
8.13
8.17
8.29
8.57
8.58
8.01
8.14
8.29
8.44
7.97
8.04
8.15
8.20
7.58
7.64
7.81
8.01
7.49
7.55
7.74
7.86
10.61
11.07
11.07
8.61
8.73
8.80
9.52
9.76
9.92
8.26
8.39
8.56
8.52
8.90
9.06
7.95
8.23
8.44
7.48
7.65
7.85
7.78
8.03
8.25
7.76
7.92
8.09
7.50
7.68
7.90
7.25
7.41
7.63
7.19
7.32
7.53
10.69'
11.08'
11.10'
8.63'
8.75'
8.86
9.58'
9.8<y
9.91
8.22
8.34
8.46
8.56
8.92
9.24
7.99
8.31
8.44
7.56
7.75
7.94
7.87
8.11
n.a.
7.76
7.93
n.a.
7.69
7.90
7.94
7.28
7.43
n.a.
7.22
7.39
n.a.
12.27
12.80
9.57
10.21
10.89
11.65
9.29
10.17
9.86
10.71
9.14
10.09
8.46
9.39
8.92
9.85
8.52
9.44
10.45
10.80
11.02
11.10
11.34
11.18
11.89
12.24
12.40
12.44
12.48
12.39
10.55
11.13
11.44
11.51
11.70
11.47
11.05
11.52
11.82
11.86
12.06
11.81
10.49
11.01
11.34
11.43
11.69
11.47
9.75
10.34
10.72
10.85
11.19
11.05
10.32
10.85
11.21
11.33
11.62
11.41
9.75
10.39
10.78
10.89
11.24
11.08
8.22
9.13
10.05
9.43
10.06
10.45
10.60
10.%
10.87
8.09
9.01
12.92
13.01
13.06
13.00
12.92
12.76
8.73
9.68
10.05
10.06
10.68
11.06
11.17
11.49
11.30
9.36
9.84
10.25
10.39
10.78
10.67
12.23
10.84
11.99
11.35
11.78
11.42
10.96
11.35
11.23
11.00
10.76
10.58
10.86
12.46
11.66
8.80
10.17
9.51
9.61
10.38
10.10
8.98
10.05
9.65
9.18
10.18
9.77
8.95
9.95
9.42
8.52
9.54
9.01
8.75
9.80
9.37
8.70
9.75
9.11
8.45
9.45
8.86
8.40
9.40
8.91
8.30
9.30
8.81
14.94
13.79
14.41
15.43
16.11
12.78
12.04
12.42
13.10
13.55
13.49
12.71
13.31
13.74
14.19
12.66
12.13
12.49
12.80
13.23
13.13
12.56
12.91
13.36
13.69
12.89
12.23
12.69
13.14
13.51
12.47
11.72
12.30
12.70
13.15
12.81
12.15
12.63
13.03
13.44
12.73
12.03
12.59
12.93
13.39
12.55
11.77
12.41
12.79
13.24
12.30
11.50
12.11
12.57
13.03
12.01
11.27
11.82
12.24
12.69
15.49
12.73
13.81
12.76
13.17
12.75
12.25
12.56
12.49
12.24
12.01
11.78
12.53
5.81
11.02
4.40
11.59
4.64
10.88
4.30
10.97
4.37
10.75
4.37
10.60
4.31
10.88
4.43
10.74
4.40
10.66
4.30
10.48
4.20
10.25
4.23
CAPITAL MARKET RATES
21
22
73
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
U.S. Treasury notes and
bonds"
Constant maturities12
1-year
2-vear
2-w-year13
3-year
5-year
7-year
10-year
20-year
30-year 14
Composite
Over 10 years (long-term)
State and local notes
and bonds
Moody's series15
Aaa
Baa
Bond Buyer series16
Corporate bonds 17
Seasoned issues
All industries
Aaa
Aa
A
Baa
A-rated,18recently-offered utility
bonds
MEMO: Dividend/price ratio19
40 Preferred stocks
41 Common stocks
1. Weekly and monthly figures are averages of all calendar days, where the
rate for a weekend or holiday is taken to be the rate prevailing on the preceding
business day. The daily rate is the average of the rates on a given day weighted by
the volume of transactions at these rates.
2. Weekly figures are averages for statement week ending Wednesday.
3. Rate for the Federal Reserve Bank of New York.
4. Unweighted average of offering rates quoted by at least five dealers (in the
case of commercial paper), or finance companies (in the case of finance paper).
Before November 1979, maturities for data shown are 30-59 days, 90—119 days,
and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 150—
179 days for finance paper.
5. Yields are quoted on a bank-discount basis, rather than an investment yield
basis (which would give a higher figure).
6. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quoted by the dealers).
7. Unweighted average of offered rates quoted by at least five dealers early in
the day.
8. Calendar week average. For indication purposes only.
9. Unweighted average of closing bid rates quoted by at least five dealers.
10. Rates are recorded in the week in which bills are issued. Beginning with the
Treasury bill auction held on Apr. 18, 1983, bidders were required to state the
percentage yield (on a bank discount basis) that they would accept to two decimal
places. Thus, average issuing rates in bill auctions will be reported using two
rather than three decimal places.
11. Yields are based on closing bid prices quoted by at least five dealers.
12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields
are read from a yield curve at fixed maturities. Based on only recently issued,
actively traded securities.
13. 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-Vi-year small saver certificates. (See table 1.16.)
14. Averages (to maturity or call) for all outstanding bonds neither due nor
callable in less than 10 years, including several very low yielding "flower" bonds.
15. General obligations based on Thursday figures; Moody's Investors Service.
16. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
17. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
18. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of
call protection. Weekly data are based on Friday quotations.
19. Standard and Poor's corporate series. Preferred stock ratio based on a
sample of ten issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
NOTE. These data also appear in the Board's H. 15 (519) and G.13 (415) releases.
For address, see inside front cover.
Financial Markets
1.36
STOCK MARKET
A25
Selected Statistics
1984
Indicator
1983
1982
1985
1984
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
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 Exchange 2
(Aug. 31, 1973 = 100)
68.93
78.18
60.41
39.75
71.99
119.71
92.63
107.45
89.36
47.00
95.34
160.41
92.46 95.68
108.01 112.18
85.63 86.88
46.44 47.47
89.28 91.59
160.50 166.11
95.09
110.44
86.82
49.02
92.94
164.82
95.85
110.91
87.37
49.93
95.28
166.27
94.85 99.11
109.05 113.99
88.00 94.88
50.58 51.95
95.29 101.34
164.48 171.61
104.73
120.71
101.76
53.44
109.58
180.88
103.92
119.64
98.30
53.91
107.59
179.42
104.66
119.93
96.47
55.51
109.39
180.62
107.00
121.88
99.66
57.32
115.31
180.94
141.31
216.48
207.96 214.50
210.39
209.47
202.28 211.82
228.40
225.62
229.46
228.75
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
64,617
5,283
85,418
8,215
91,084 93,108
6,107 5,967
91,676
5,587
83,692
6,008
89,032 121,545
7,254 9,130
115,489 102,591
8,677
10,010
94,387
7,801
106,827
7,171
Customer financing (end-of-period balances, in millions of dollars)
10 Margin credit at broker-dealers 3
13,325
11 Margin stock
12 Convertible bonds
13 Subscription issues
12,980
344
22,720
279
t
t
5,735
8,390
6,620
8,430
7,015
10,215
6,690
8,315
1
Free credit balances at brokers4
14 Margin-account
15 Cash-account
22,470 22,800
22,330
22,350
6,580
8,650
6,699
8,420
t
t
22,470 22,090
t
22,970
23,230
6,680
9,840
6,780
10,155'
1
7,015
10,215
6,770
9,725
Margin-account debt at brokers (percentage distribution, end of period)
16 Total
17
18
19
20
21
22
By equity class (in percent)5
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
100.0
100.0
100.0
100.0
21.0
24.0
24.0
14.0
9.0
8.0
41.0
22.0
16.0
9.0
6.0
6.0
46.0
18.0
16.0
9.0
5.0
6.0
42.0
22.0
15.0
9.0
6.0
6.0
44.0
21.0
14.0
9.0
6.0
6.0
47.0
19.0
13.0
9.0
6.0
6.0
46.0
18.0
16.0
9.0
5.0
6.0
35.0
19.0
20.0
36.0
20.0
18.0
8.0
8.0
39.0
19.0
18.0
10.0
7.0
7.0
36.0
19.0
19.0
7.0
8.0
38.0
20.0
18.0
10.0
7.0
7.0
82,990
87,120
11.0
11.0
11.0
7.0
8.0
Special miscellaneous-account balances at brokers (end of period)
23 Total balances (millions of dollars)
6
Distribution by equity status (percent)
24 Net credit status
Debt status, equity of
25 60 percent or more
26 Less than 60 percent
35,598
58,329
75,840 72,350
71,914
73,904
75,840 79,600
81,830
83,729
62.0
63.0
59.0
58.0
59.0
59.0
59.0
59.0
59.0
60.0
60.0
60.0
29.0
9.0
28.0
9.0
29.0
31.0
30.0
29.0
12.0
29.0
30.0
10.0
31.0
10.0
30.0
10.0
30.0
10.0
30.0
10.0
11.0
11.0
11.0
11.0
Margin requirements (percent of market value and effective date)7
27 Margin stocks
28 Convertible bonds
29 Short sales
Mar. 11, 1968
June 8, 1968
May 6, 1970
70
50
70
80
60
80
65
50
65
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Beginning July 5, 1983, the American Stock Exchange rebased its index
effectively cutting previous readings in half.
3. Beginning July 1983, under the revised Regulation T, margin credit at
broker-dealers includes credit extended against stocks, convertible bonds, stocks
acquired through exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds,
and subscription issues was discontinued in April 1984, and margin credit at
broker-dealers became the total that is distributed by equity class and shown on
lines 17-22.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
65
50
65
50
50
50
5. Each customer's equity in his collateral (market value of collateral less net
debit balance) is expressed as a percentage of current collateral values.
6. 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.
7. Regulations G, T, and U of the Federal Reserve Board of Governors,
prescribed in accordance with the Securities Exchange Act of 1934, limit the
amount of credit to purchase and carry margin stocks that may be extended on
securities as collateral by prescribing a maximum loan value, which is a specified
percentage of the market value of the collateral at the time the credit is extended.
Margin requirements are the difference between the market value (100 percent)
and the maximum loan value. The term "margin stocks" is defined in the
corresponding regulation.
A26
1.37
DomesticNonfinancialStatistics • August 1985
SELECTED FINANCIAL INSTITUTIONS
Selected Assets and Liabilities
Millions of dollars, end of period
1984
June
July
Aug.
Sept.
1985
Nov.
Oct.
Dec.
Jan.
Feb.
Mar.
Apr.
902,449
898,537
898,086
904,827
907,139
Savings and loan associations
1
2
3
4
Assets
Mortgages
Cash and investment securities1 . . . .
Other
5 Liabilities and net worth
6
7
8
9
10
11
Savings capital
Borrowed money
FHLBB
Other
Loans in process2
Other
707,646
773,417
840,682
850,780
860,088
877,642
881,627
887,696
483,614 494,789 528,172 535,814 540,644 550,129 552,516 556,229 555,277
85,438 104,274 109,752 108,456 108,820 112,350 112,023 114,879 125,358
138,594 174,354 202,758 206,510 210,624 215,163 217,088 216,588 221,814
707,646
773,417
840,682
850,780
860,088
877,642
881,627
887,696
902,449
558,276 556,184 559,263 563,316
119,673 119,724 119,713 114,768
220,588 222,178 225,851 229,055
898,537
898,086
904,827
907,139
567,961 634,455 681,947 687,817 691,704 704,558 708,846 714,780 724,301 730,709 726,308 732,406 732,205
97,850 92,127 108,417 110,238 114,747 121,329 119,305 117,775 126,169 114,806 116,879 119,461 118,484
63,861 52,626 56,558 57,115 60,178 63,627 63,412 63,383 64,207 63,152 63,452 63,187 63,985
33,989 39,501 51,859 53,123 54,569 57,702 55,893 54,392 61,962
51,654 53,427 56,274 54,499
9,934 21,117 25,726 26,122 26,773 27,141 26,754 26,683 26,959
26,546 26,636 27,004 27,334
15,602 15,968 17,586 19,970 20,599 18,050 19,894 21,302 17,215
18,358 19,857 17,471 20,486
12 Net worth3
26,233
30,867
32,732
32,755
33,038
33,705
33,582
33,839
34,764
34,664
35,042
35,489
35,964
13 MEMO: Mortgage loan commitments
outstanding?
18,054
32,996
44,878
43,878
41,182
40,089
38,530
37,856
34,841
33,305
34,217
35,889
35,766
203,898
204,859
206,175
207,808
Mutual savings banks
14 Assets
174,197
193,535
94,091
16,957
97,356
19,129
99,433 100,091 101,211 101,621 102,704 102,953 102,895
23,198 23,213 24,068 24,535 24,486 24,884 24,954
9,743
2,470
36,161
6,919
7,855
15,360
2,177
43,580
6,263
9,670
15,448
2,037
42,479
5,452
10,817
15,457
2,037
42,682
4,896
10,752
15,019
2,055
42,632
4,981
10,756
14,965
2,052
42,605
4,795
10,872
15,295
2,080
43,003
4,605
11,101
15,034
2,077
43,361
4,795
11,395
14,643
2,077
42,962
4,954
11,413
14,628
2,067
43,351
4,140
11,533
14,917
2,069
43,063
4,423
11,593
15,079
2,092
43,500
4,707
11,620
22 Liabilities
174,197
193,535
198,864
199,128
200,722
201,445
203,274
204,499
203,898
204,859
206,175
207,808
23
24
25
26
2.7
28
29
30
155,196 172,665 174,972 174,823 176,085 177,345 178,624 180,073 180,616
152,777 170,135 171,858 171,740 172,990 174,296 175,727 177,130 177,418
46,862 38,554 36,322 35,511 34,787 34,564 34,221 34,009 33,739
96,369 95,129 97,168 98,410 101,270 102,934 104,151 104,849 104,732
2,530
3,114
3,083
3,095
2,419
3,049
2,897
2,943
3,198
8,336 10,154 12,999 13,269 13,604 12,979 13,853 13,453 12,504
9,235 10,368 10,404 10,495 10,498 10,488 10,459 10,535 10,510
15
16
17
18
19
20
21
Loans
Mortgage
Other
Securities
U.S. government6
State and local government
Corporate and other7
Cash
Other assets
Deposits 8
Regular
Ordinary savings
Time
Other
Other liabilities
General reserve accounts
MEMO: Mortgage
loan commitments
outstanding9
1,285
2,387
198,864
n.a.
199,128
n.a.
200,722
n.a.
201,445
n.a.
203,274
5
204,499
n.a.
n.a.
n.a.
103,393 103,654 103,667
25,747 26,456 27,143
N•a.
181,062 181,849 183,030
177,954 178,791 179,664
33,413 33,413 33,607
104,098 103,536 103,688
3,108
3,058
3,346
12,931 13,387 13,862
10,619 10,670 10,680
n.a.
n.a.
n.a.
Life insurance companies
31 Assets
32
33
34
35
36
37
38
39
40
41
42
Securities
Government
United States10
State and local
Foreign"
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
588,163
654,948
679,449
684,573
694,082
699,996
705,827
712,271
720,807
36,499 50,752 53,970 54,688 56,263 57,552 59,825 62,678 64,683
16,529 28,636 32,066 32,654 33,886 35,586 37,594 40,288 41,970
9,236
9,357
9,986
9,213
9,221
9,344
9,385
9,757
8,664
11,306 12,130 12,691 12,798 13,020 12,745 12,887 13,005 12,956
287,126 322,854 338,508 341,802 348,614 350,512 352,059 354,815 354,902
231,406 257,986 276,902 281,113 283,673 285,543 287,607 291,021 290,731
55,720 64,868 61,606 60,689 64,941 64,969 64,452 63,794 64,171
141,989 150,999 153,845 154,299 155,438 155,802 156,064 156,691 157,283
20,264 22,234 23,792 24,019 24,117 24,685 24,947 25,467 25,985
52,961 54,063 54,430 54,441 54,517 54,551 54,574 54,571 54,610
48,571 54,046 54,904 55,324 55,133 56,894 58,358 58,049 63,344
730,120
734,920
741,442
65,367 67,111 66,641
42,183 43,929 43,317
9,895
9,956
9,770
13,289 13,226 13,554
364,617 367,411 370,582
297,666 298,381 302,072
66,951 69,030 68,510
157,583 158,052 158,956
26,343 26,567 26,911
54,442 54,523 54,466
61,768 61,256 63,886
n .a.
Credit unions12
43 Total assets/liabilities and capital . . . .
44 Federal
45 State
69,585
81,961
90,276
90,145
90,503
91,651
91,619
92,521
93,036
54,482
27,479
61,316
28,960
61,163
28,982
61,500
29,003
62,107
29,544
94,646
96,183
98,646
61,935
29,684
62,690
29,831
63,205
29,831
101,268
45,493
24,092
64,505
30,141
65,989
30,194
67,799
30,847
68,903
32,365
46 Loans outstanding
47 Federal
48 State
49 Savings
50 Federal (shares)
51 State (shares and deposits)
43,232
27,948
15,284
62,990
41,352
21,638
50,083
32,930
17,153
74,739
49,889
24,850
55,915
37,547
18,368
82,578
56,261
26,317
57,286
38,490
18,796
82,402
56,278
26,124
58,802
39,578
19,224
82,135
56,205
25,930
59,874
40,310
19,564
83,172
56,734
26,438
60,483
40,727
19,756
83,129
56,655
26,474
62,170
41,762
20,408
84,000
57,302
26,698
62,561
42,337
20,224
84,348
57,539
26,809
62,662
42,220
20,442
86,047
58,820
27,227
62,393
42,283
20,110
86,048
59,914
26,134
62,936
42,804
20,132
88,560
61,758
26,802
64,341
43,414
20,927
91,275
62,867
28,408
Financial Markets
All
1.37 Continued
1984
Account
1982
1985
1983
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
FSLIC-insured federal savings banks
52
53
54
55
Assets
Mortgages
Cash and investment securities'
Other
56 Liabilities and net worth
57
58
59
60
61
62
Savings and capital
Borrowed money
FHLBB
Other
Other
Net worth3
6,859
64,969
81,310
83,989
87,209
82,174
87,743
94,536
98,559
98,747
106,657
109,720
110,501
3,353
38,698
10,436
15,835
48,084
13,071
20,155
49,996
13,184
20,809
52,039
13,331
21,839
48,841
12,867
20,466
51,554
13,615
22,574
55,861
14,826
23,849
57,429
16,001
25,129
57,667
15,378
25,702
60,938
17,511
28,208
62,608
18,237
28,875
63,486
17,958
29,057
6,859
64,969
81,310
83,989
87,209
82,174
87,743
94,536
98,559
98,747
106,657
109,720
110,501
70,080
11,935
6,867
5,068
1,896
3,832
76,167
11,937
7,041
4,8%
2,259
4,173
79,572
12,798
7,515
5,283
1,903
4,286
80,091
12,372
7,361
5,011
1,982
4,302
85,632
14,079
8,023
6,056
2,356
4,590
88,001
14,860
8,491
6,369
2,174
4,685
88,158
15,185
8,837
6,348
2,435
4,723
5,877
53,227
7,477
4,640
2,837
1,157
3,108
64,364
11,489
6,538
4,951
1,646
3,811
66,227
12,060
6,897
5,163
1,807
3,895
68,443
12,863
7,654
5,209
1,912
3,991
65,079
11,828
6,600
5,228
1,610
3,657
MEMO
63 Loans in process2
64 Mortgage loan commitments
outstanding4
1,264
1,839
1,901
1,895
1,505
1,457
1,689
1,738
1,685
1,747
1,919
2,005
2,151
3,583
3,988
3,860
2,970
2,925
3,298
3,234
3,510
3,646
3,752
3,952
1. Holdings of stock of the Federal Home Loan Banks are in "other assets."
2. Beginning in 1982, loans in process are classified as contra-assets and are
not included in total liabilities and net worth. Total assets are net of loans in
process.
3. Includes net undistributed income accrued by most associations.
4. Excludes figures for loans in process.
5. The National Council reports data on member mutual savings banks and on
savings banks that have converted to stock institutions, and to federal savings
banks.
6. Beginning April 1979, includes obligations of U.S. government agencies.
Before that date, this item was included in "Corporate and other."
7. Includes securities of foreign governments and international organizations
and, before April 1979, nonguaranteed issues of U.S. government agencies.
8. Excludes checking, club, and school accounts.
9. 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.
10. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
11. Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
12. As of June 1982, data include only federal or federally insured state credit
unions serving natural perons.
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 Council of Savings Institutions 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 data.
A28
1.38
DomesticNonfinancialStatistics • August 1985
FEDERAL FISCAL A N D FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
Fiscal
year
1982
Fiscal
year
1983
Fiscal
year
1984
1983
HI
U.S. budget
1 Receipts'
2 Outlays'
3 Surplus, or deficit ( - )
4 Trust funds 2 3
5 Federal funds
Off-budget entities (surplus, or deficit (-))
6 Federal
Financing Bank outlays
7 Other3 4
U.S. budget plus off-budget, including
Federal Financing Bank
8 Surplus, or deficit ( - )
Source of financing
9 Borrowing from the public
10 Cash and monetary
assets (decrease, or
increase (-)) 4
11 Other5
1984
H2
HI
1985
Mar.
Apr.
May
617,766
728,375
-110,609
5,456
-116,065
600,562
795,917
-195,355
23,056
-218,410
666,457
841,800
-175,343
30,565
-205,908
306,331
3%,477
-90,146
22,680
-112,822
306,584
406,849
-100,265
7,745
-108,005
341,808
420,700
-78,892
18,080
-96,971
49,606
78,067
-28,461
-1,682
-26,780
94,593
82,228
12,365
5.182
7.183
39,794
80,245
-40,451
6,699
-47,149
-14,142
-3,190
-10,404
-1,953
-7,277
-2,719
-5,418
-528
-3,199
-1,206
-2,813
-838
-l,134 r
91'
-1,108
128
-1,192
-354
-127,940
-207,711
-185,339
-96,094
-104,670
-84,884
-29,504'
11,386
-41,997
134,993
212,425
170,817
102,538
84,020
80,592
13,159
17,036
16,333
-11,911
4,858
-9,889
5,176
5,636
8,885
-9,664
3,222
-16,294
4,358
-3,127
7,418
3,212'
13,133'
-27,927
-495
-29,808
-4,143
29,164
10,975
18,189
37,057
16,557
20,500
22,345
3,791
18,553
27,997
19,442
8,764
11,817
3,661
8,157
13,567
4,397
9,170
13,868
3,063
10,805
40,022
19,305
20,717
11,138
1,933
9,204
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. Half-year figures are calculated as a residual (total surplus/deficit less trust
fund surplus/deficit).
3. Other off-budget includes Postal Service Fund; Rural Electrification and
Telephone Revolving Fund; Rural Telephone Bank; and petroleum acquisition
and transportation and strategic petroleum reserve effective November 1981.
4. Includes U.S. Treasury operating cash accounts; SDRs; gold tranche
drawing rights; loans to International Monetary Fund; and other cash and
monetary assets.
5. 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 U.S. Government, Fiscal
Year 1985.
Federal Finance
1.39
A29
U.S. BUDGET RECEIPTS A N D OUTLAYS
Millions of dollars
Calendar year
Source or type
Fiscal
year
1983
Fiscal
year
1984
1985
1984
1983
1982
H2
HI
H2
HI
Apr.
Mar.
May
RECEIPTS
1 AU sources
600,563
666,457
286,337
306,331
305,122
341,808
49,606
94,593
39,794
3
4
288,938
266,010
36
83,586
60,692
295,955
279,345
35
81,346
64,771
145,676
131,567
5
20,041
5,938
144,551
135,531
30
63,014
54,024
147,663
133,768
6
20,703
6,815
144,691
140,657
29
61,463
57,458
15,254
23,952
8
3,136
11,842
51,602
26,343
9
43,235
17,986
3,611
27,640
8
1,945
25,982
61,780
24,758
74,179
17,286
25,660
11,467
33,522
13,809
31,064
8,921
40,328
10,045
10,304
1,888
11,265
2,409
2,205
975
209,001
241,902
94,277
110,520
100,832
131,372
20,551
28,032
28,423
179,010
203,476
85,064
90,912
88,388
106,436
19,045
18,822
19,204
6,756
18,799
4,436
8,709
25,138
4,580
177
6,856
2,180
6,427
10,984
2,197
398
8,714
2,290
7,667
14,942
2,329
610
515
380
5,757
3,062
391
590
8,192
437
35,300
8,655
6,053
15,594
37,361
11,370
6,010
16,965
16,555
4,299
3,444
7,890
16,904
4,010
2,883
7,751
19,586
5,079
3,050
7,811
18,304
5,576
3,102
8,481
2,739
998
430
1,218
2,700
939
671
1,793
3,235
946
566
1,783
Withheld
Presidential Election Campaign Fund . . .
6 Refunds
Corporation income taxes
7 Gross receipts
8 Refunds
9 Social insurance taxes and contributions,
net
10 Payroll employment
taxes and
contributions1
11 Self-employment 2taxes and
contributions
12 Unemployment insurance
13 Other net receipts3
15 Customs deposits
16 Estate and gift taxes 4
17 Miscellaneous receipts
OUTLAYS
18 All types
795,917
841,800
390,847
396,477
406,849
420,700
78,067
82,228
80,245
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology . . .
Energy
Natural resources and environment
Agriculture
210,461
8,927
7,777
4,035
12,676
22,173
227,405
13,313
8,271
2,464
12,677
12,215
100,419
4,406
3,903
2,058
6,941
13,259
105,072
4,705
3,486
2,073
5,892
10,154
108,967
6,117
4,216
1,533
6,933
5,278
114,639
5,426
3,981
1,080
5,463
7,129
21,782
1,416
740
207
929
1,732
20,239
946
743
355
1,006
2,822
22,198
1,201
722
408
1,016
903
25
26
27
28
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, social
services
4,721
21,231
7,302
5,198
24,705
7,803
2,244
10,686
4,187
2,164
9,918
3,124
2,648
13,323
4,327
2,572
10,616
3,154
75
1,583
538
1,128
2,045
683
-187
2,124
508
25,726
26,616
12,186
12,801
13,246
13,445
2,233
2,344
2,448
29 Health
30 Social security and medicare
31 Income security
28,655
223,311
106,211J
30,435
235,764
96,714
39,072
133,779
41,206
143,001
42,150
15,748
135,579
65,212
2,685
21,031
11,530
2,909
21,355
13,347
3,016
21,378
10,740
32
33
34
35
36
37
24,845
5,014
4,991
6,287
89,774
-21,424
25,640
5,616
4,836
6,577
111,007
-15,454
13,240
2,373
2,323
3,153
44,948
-8,332
11,334
2,522
2,434
3,124
42,358
-8,887
13,621
2,628
2,479
3,290
47,674
-7,262
12,849
2,807
2,462
2,943
53,729
-7,333
2,296
471
343
75
10,517
-2,118
2,293
572
80
1,258
10,858
-2,754
3,207
492
848
91
11,536
-2,403
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Net interest®
Undistributed offsetting receipts7
1. Old-age, disability, and hospital insurance, and railroad retirement accounts.
2. Old-age, disability, and hospital insurance.
3. Federal employee retirement contributions and civil service retirement and
disability fund.
4. Deposits of earnings by Federal Reserve Banks and other miscellaneous
receipts.
5. In accordance with the Social Security Amendments Act of 1983, the
Treasury now provides social security and medicare outlays as a separate
function. Before February 1984, these outlays were included in the income
security and health functions.
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 1985.
A30
1.40
Domestic Financial Statistics •
August
1985
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1984
1983
1985
Item
Mar. 31
Sept. 30
June 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
1 Federal debt outstanding
1,249.3
1,324.3
1,381.9
1,415.3
1,468.3
1,517.2
1,576.7
1,667.4
1,715.1
2 Public debt securities
3 Held by public
4 Held by agencies
1,244.5
1,043.3
201.2
1,319.6
1,090.3
229.3
1,377.2
1,138.2
239.0
1,410.7
1,174.4
236.3
1,463.7
1,223.9
239.8
1,512.7
1,255.1
257.6
1,572.3
1,309.2
263.1"
1,663.0
1,373.4
289.6
1,710.7
1,415.2
295.5
4.8
3.7
1.1
4.7
3.6
1.1
4.7
3.6
1.1
4.6
3.5
1.1
4.6
3.5
1.1
4.5
3.4
1.1
4.5
3.4
1.1
4.5
3.4
1.1
4.4
3.3
1.1
5 Agency securities
6 Held by public
7 Held by agencies
1,245.3
1,320.4
1,378.0
1,411.4
1,464.5
1,513.4
1,573.0
1,663.7
1,711.4
9 Public debt securities
10 Other debt1
1,243.9
1.4
1,319.0
1.4
1,376.6
1.3
1,410.1
1.3
1,463.1
1.3
1,512.1
1.3
1,571.7
1.3
1,662.4
1.3
1,710.1
1.3
11 MEMO: Statutory debt limit
1,290.2
1,389.0
1,389.0
1,490.0
1,490.0
1,520.0
1,573.0
1,823.8
1,823.8
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
1984
Type and holder
1981
1980
Q2
1 Total gross public debt
By type
2 Interest-bearing debt
3 Marketable
4 Bills
5 Notes
6 Bonds
7 Nonmarketable1
8 State and local government series
9 Foreign issues2
Government
10
11
Public
12 Savings bonds and notes 3
13 Government account series
1985
1983
1982
Q3
Q4
Ql
930.2
1,028.7
1,197.1
1,410.7
1,512.7
1,572.3
1,663.0
1,710.7
928.9
623.2
216.1
321.6
85.4
305.7
23.8
24.0
17.6
6.4
72.5
185.1
1,027.3
720.3
245.0
375.3
99.9
307.0
23.0
19.0
14.9
4.1
68.1
196.7
1,195.5
881.5
311.8
465.0
104.6
314.0
25.7
14.7
13.0
1.7
68.0
205.4
1,400.9
1,050.9
343.8
573.4
133.7
350.0
36.7
10.4
10.4
.0
70.7
231.9
1,501.1
1,126.6
343.3
632.1
151.2
374.5
39.9
8.8
8.8
.0
72.3
253.2
1,559.6
1,176.6
356.8
661.7
158.1
383.0
41.4
8.8
8.8
.0
73.1
259.5
1,660.6
1,247.4
374.4
705.1
167.9
413.2
44.4
9.1
9.1
.0
73.3
286.2
1,695.2
1,271.7
379.5
713.8
178.4
423.6
47.7
9.1
9.1
.0
74.4
292.2
2.3
15.5
1.3
1.4
1.6
9.8
11.6
12.7
15
16
17
18
19
20
21
22
By holder4
U.S. government agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
Money market funds
Insurance companies
Other companies
State and local governments
192.5
121.3
616.4
112.1
3.5
24.0
19.3
87.9
203.3
131.0
694.5
111.4
21.5
29.0
17.9
104.3
209.4
139.3
848.4
131.4
42.6
39.1
24.5
127.8
236.3
151.9
1,022.6
188.8
22.8
56.7
39.7
155.1
257.6
152.9
1,102.2
182.3
14.9
61.6
45.3
165.0
263.1
155.0
1,154.1
183.0
13.6
73.2'
47.7
n.a.
289.6
160.9
1,212.5
183.4'
25.9'
82.3'
51.1'
n.a.
295.5
161.0
1,254.1
195.0
26.6
84.0
51.9
n.a.
2.3
74
25
26
Individuals
Savings bonds
Other securities
Foreign and international5
Other miscellaneous investors6
72.5
44.6
129.7
122.8
68.1
42.7
136.6
163.0
68.3
48.2
149.5
217.0
71.5
61.9
166.3
259.8
72.9
69.3
171.5
319.4
73.7
68.7'
175.5
n.a.
74.5
69.3'
192.8'
n.a.
75.4
69.9
186.3
n.a.
14 Non-interest-bearing debt
1. Includes (not shown separately): Securities issued to the Rural Electrification Administration; depository bonds, retirement plan bonds, and individual
retirement bonds.
2. Nonmarketable dollar-denominated and foreign currency-denominated series held by foreigners.
3. Held almost entirely by U.S. government agencies and trust funds.
4. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.
5. Consists of investments offoreign and international accounts. Excludes noninterest-bearing notes issued to the International Monetary Fund.
6. Includes savings and loan associations, nonprofit institutions, credit unions,
mutual savings banks, corporate pension trust funds, dealers and brokers, certain
U.S. government deposit accounts, and U.S. government-sponsored agencies.
SOURCES. Data by type of security, U.S. Treasury Department, Monthly
Statement of the Public Debt of the United States; data by holder. Treasury
Bulletin.
Federal Finance
1.42
U.S. GOVERNMENT SECURITIES DEALERS
A31
Transactions
Par value; averages of daily figures, in millions of dollars
1985 week ending Wednesday
1985
Item
1982
1983
1984
Mar/
1
?
3
4
6
7
8
9
10
11
12
13
14
15
16
17
18
Apr/
May
Apr. 24
May 1
May 8
May 15 May 22 May 29
Immediate delivery1
U.S. government securities
32,260
42,135
52,786
73,319
72,555
82,733
75,757
66,144
74,166
100,659
80,298
71,596
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
18,392
810
6,271
3,555
3,232
22,393
708
8,758
5,279
4,997
26,040
1,305
11,734
7,607
6,100
38,090
1,727
16,143
10,479
6,882
35,943
1,969
17,018
10,901
6,725
33,913
1,923
23,002
12,995
10,901
37,709
1,736
18,359
10,965
6,988
30,849
2,165
17,286
9,402
6,443
31,972
1,870
21,992
11,329
7,003
41,396
2,292
24,554
15,655
16,764
30,498
2,172
25,178
10,792
11,659
27,199
1,296
23,237
11,429
8,435
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 paper
Futures transactions3
Treasury bills
Treasury coupons
Federal agency securities
Forward transactions4
U.S. government securities
Federal agency securities
1,770
2,257
2,920
3,984
3,894
3,046
2,592
3,285
3,325
3,530
2,595
2,357
15,794
14,697
4,140
5,000
2,502
7,595
21,045
18,832
5,576
4,333
2,642
8,036
25,584
24,282
7,846
4,947
3,244
10,018
36,408
32,927
8,756
3,730
2,925
10,205
34,712
33,949
10,177
4,355
3,499
12,019
39,783
39,904
10,809
4,666
3,898
11,274
37,141
36,023
10,003
5,200
3,994
12,248
32,256
30,603
7,929
3,701
3,080
12,563
34,961
35,880
9,263
5,022
3,796
11,795
49,331
47,798
14,535
4,727
3,420
10,438
38,351
39,353
11,127
4,695
3,993
10,832
34,885
34,354
7,602
4,130
4,231
11,020
5,055
1,487
261
6,655
2,501
265
6,947
4,503
262
8,065
5,097
112
6,659
5,506
120
4,528
5,812
147
7,759r
6,277
154
5,276
5,610
60
4,709
5,709
%
5,315
6,441
148
3,770
5,906
311
4,050
4,627
121
835
978
1,493
1,646
1,364
2,843
1,329
2,148
1,016
2,632
1,685
3,237
1,673
2,330
869
1,743
2,753
3,059
1,142
4,457
1,755
3,820
1,399
2,032
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
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.
A32
1.43
DomesticNonfinancialStatistics • August 1985
U.S. GOVERNMENT SECURITIES DEALERS
Positions and Financing
Averages of daily figures, in millions of dollars
1985
1985 week ending Wednesday
Item
Mar.
Apr.
May
May 1
May 8
May 15
May 22
May 29
Positions
1
2
3
4
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
13,663
7,297
972
3,256
-318
2,026
4,145
5,532
2,832
3,317
10,701
8,020
394
1,778
-78
528
7,232
5,839
3,332
3,159
5,538
5,500
63
2,159
-1,119
-1,174
15,294
7,369
3,874
3,788
11,249"
14,027"
1,316
449
-2,546
-2,240
19,337
8,007"
3,563
4,646
8,531"
11,538'
1,203
2,235'
-4,468
-2,303
18,049'
8,652
3,949
4,959'
5,493
8,016
1,082
3,797
-5,687
-2,075
19,814
9,356
4,469
5,469
6,767
9,513
1,545
4,227
-5,892
-2,969
18,029
9,165
4,264
6,072
7,892
11,219
1,223
4,351
-5,283
-3,980
19,243
9,605
4,343
6,071
10,426
9,958
1,198
4,969
-5,391
-669
19,515
9,359
3,979
5,072
2,766
6,546
999
1,311
-4,650
-1,809
19,634
9,103
4,392
5,039
-56
3,900
913
3,802
-7,165
-1,858
20,720
9,199
4,946
5,204
-2,507
-2,303
-224
-4,125
-1,032
171
-4,525
1,794
233
1,220"
5,573
-101
-2,877
6,326'
38
-5,930
6,589
-99
-240
5,860
196
-2,722
7,422
150
-6,703
7,541
4
-7,158
6,410
-194
-7,887
5,284
-421
-788
-1,432
-1,936
-3,561
-1,643
-9,205
-1,320
-8,252'
-814
-7,881
-346
-7,805
-84
-7,542
-662
-7,543
-1,242
-7,909
-216
-7,945
813
-7,641
Financing2
Reverse repurchase agreements3
Overnight and continuing
Term agreements
Repurchase agreements4
18 Overnight and continuing
19 Term agreements
16
17
26,754
48,247
29,099
52,493
44,078
68,357
60,818
75,298
62,325
77,440
64,824
74,562
66,685
78,158
59,143
76,167
65,564
73,944
66,964
75,172
66,126
72,491
49,695
43,410
57,946
44,410
75,717
57,047
96,019
62,890
94,055
65,621
97,989
67,542
96,865
68,432
94,731
68,813
101,773
68,783
98,306
66,977
97,482
65,962
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. Prior to 1984, securities
owned, and hence dealer positions, do not include all securities acquired under
reverse RPs. After January 1984, immediate positions include reverses to maturity, which are securities that were sold after having been obtained under reverse
repurchase agreements that mature on the same day as the securities. 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.
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.
Federal Finance
1.44
FEDERAL A N D FEDERALLY SPONSORED CREDIT AGENCIES
A33
Debt Outstanding
Millions of dollars, end of period
1985
1984
Agency
1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department12 3
4 Export-Import Bank '
5 Federal Housing Administration4
6 Government National Mortgage Association
participation certificates'
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 Association8
14 Farm Credit Banks
15 Student Loan Marketing Association
MEMO
16 Federal Financing Bank debt9
1981
1982
1983
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
221,946
237,085
239,716
270,314
271,564
270,965
271,479
275,093
275,209
31,806
484
13,339
413
33,055
354
14,218
288
33,940
243
14,853
194
35,078
146
15,721
138
35,145
142
15,882
133
35,235
133
15,882
132
35,360
122
15,881
129
35,140
116
15,709
127
35,182
107
15,707
123
2,715
1,538
13,115
202
2,165
1,471
14,365
194
2,165
1,404
14,970
111
2,165
1,337
15,520
51
2,165
1,337
15,435
51
2,165
1,337
15,535
51
2,165
1,337
15,675
51
2,165
1,337
15,635
51
2,165
1,337
15,776
74
190,140
54,131
5,480
58,749
71,359
421
204,030
55,967
4,524
70,052
71,896
1,591
205,776
48,930
6,793
74,594
72,409
3,050
235,236
66,230
10,299
81,119
72,267
5,321
236,419
65,085
10,270
83,720
71,255
5,369
235,730
64,705
10,195
84,612
70,642
5,576
236,120'
64,706
11,237
84,701
70,012
5,464'
239,953
65,700
11,882
86,297
70,161
5,913
240,027
65,257
12,004
86,913
69,882
5,971
110,698
126,424
135,791
145,174
145,217
146,034
146,611
147,507
148,723
12,741
1,288
5,400
11,390
202
14,177
1,221
5,000
12,640
194
14,789
1,154
5,000
13,245
111
15,690
1,087
5,000
13,795
51
15,852
1,087
5,000
13,710
51
15,852
1,087
5,000
13,810
51
15,852
1,087
5,000
13,950
51
15,690
1,087
5,000
13,910
51
15,690
1,087
5,000
14,051
74
48,821
13,516
12,740
53,261
17,157
22,774
55,266
19,766
26,460
58,801
20,889
29,861
58,971
20,693
29,853
59,066
20,653
30,515
59,041
20,804
30,826
59,756
20,730
31,283
60,641
20,894
31,286
Lending to federal and federally sponsored
17
18
19
20
21
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.
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.
A34
1.45
D o m e s t i c Financial Statistics •
August
1985
NEW SECURITY ISSUES State and Local Governments
Millions of dollars
1984
Type of issue or issuer,
or use
1982
1983
Aug.
I All issues, new and refunding1
1985
1984
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.'
Mar.
79,138
86,421 106,641
11,726
7,967
12,558
13,548'
17,713
6,275
8,109
9,473
21,094
225
58,044
461
21,566
%
64,855
253
26,485'
16
80,156
17
1,781
1
9,945
1
1,433
4
6,534
1
3,770
1
8,788
3
2,611
3
10,937
1
2,185
2
15,528
0
1,804
7
4,471
3
3,463
0
4,646
0
2,816
5
6,657
0
Type of issuer
6 State
7 Special district and statutory authority
8 Municipalities, counties, townships, school districts
8,438
45,060
25,640
7,140
51,297
27,984
9,129
63,550
33,962
2,157
7,321
2,248
596
5,202
2,169
1,110
7,087
4,361
405
7,265
5,878
725
11,894
5,094'
367
3,847
2,061
1,542
4,282
2,285
252
5,581
3,640
9 Issues for new capital, total
74,804
72,441
94,050
10,749
7,454
11,105
12,352
16,354
4,904
5,580
8,032
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
6,482
6,256
14,259
26,635
8,349
12,822
8,099
4,387
13,588
26,910
7,821
11,637
7,553
7,552
17,844
29,928
15,415
15,758
627
423
1,015
4,823
1,055
2,806
333
590
2,013
3,018
679
821
755
1,018
2,784
3,500
1,522
1,526
999
2,151
534
3,701
3,866
1,101
671
1,339
4,133
3,598
5,572
1,041
661
341
1,315
1,567
376
644
930
472
912
1,847
185
1,234
1,015
151
1,572
3,017
515
1,762
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 Corporations
Millions of dollars
Type of issue or issuer,
or use
1984
1982
1983
1985
1984
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
1 All issues1
84,638
120,074'
132,311'
7,758
12,350
11,931
6,940
7,294
6,743
14,005
11,449
2 Bonds2
54,076
68,495'
109,683'
6,225
10,403
9,524
5,918
5,739
4,027
11,641
8,837
Type of offering
3 Public
4 Private placement
44,278
9,798
47,369
21,126
73,357
36,326
6,225
n.a.
10,403
n.a.
9,524
n.a.
5,918
n.a.
5,739
n.a.
4,027
n.a.
11,641
n.a.
8,837
n.a.
12,822
5,442
1,491
12,327
2,390
19,604
16,851'
7,540'
3,833'
9,125'
3,642'
27,502'
24,607'
13,726'
4,694'
10,679'
2,997'
52,980'
1,614
576
200
758
0
3,076
2,989
988
161
1,150
240
4,875
1,447
1,198
19
555
1,557
4,749
1,741
555
110
575
169
2,768
1,326
144
297
309
375
3,288
1,476
469
30
80
353
1,619
5,660
974
130
500
300
4,077
922
1,317
334
860
0
5,405
11 Stocks3
30,562
51,579
22,628
1,533
1,947
2,407
1,022
1,555
2,716
2,364
2,612
Type
12 Preferred
13 Common
5,113
25,449
7,213
44,366
4,118
18,510
155
1,378
555
1,392
655
1,752
91
931
170
1,385
218
2,498
311
2,053
208
2,404
5,649
7,770
709
7,517
2,227
6,690
14,135
13,112
2,729
5,001
1,822
14,780
4,054
6,277
589
1,624
419
9,665
212
378
87
92
9
755
712
489
16
146
69
515
227
1,025
66
150
3
936
137
112
71
66
26
610
172
234
0
225
271
653
229
760
153
283
101
1,190
224
472
32
197
15
1,424
283
978
419
157
5
770
5
6
7
8
9
10
14
15
16
17
18
19
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures, which represent gross proceeds of issues maturing in more than one
year, sold for cash in the United States, are principal amount or number of units
multiplied by offering price. Excludes offerings of less than $100,000, secondary
offerings, undefined or exempted issues as defined in the Securities Act of 1933,
employee stock plans, investment companies other than closed-end, intracorporate transactions, and sales to foreigners.
2. Monthly data include only public offerings.
3. Beginning in August 1981, gross stock offerings include new equity volume
from swaps of debt for equity.
SOURCE. Securities and Exchange Commission and the Board of Governors of
the Federal Reserve System.
Securities Market and Corporate Finance
1.47
O P E N - E N D INVESTMENT COMPANIES
A35
Net Sales and Asset Position
Millions of dollars
1984
Item
1983
1985
1984'
Sept.
Nov.
Oct.
Dec.
Jan.
Feb.
Mar/
Apr.
INVESTMENT COMPANIES1
1 Sales of own shares2
2 Redemptions of own shares3
3 Net sales
4 Assets4
5
Cash position5
6
Other
84,345
57,100
27,245
107,485
77,033
30,452
8,156
6,185
1,971
9,517
6,766
2,751
9,458
6,343
3,115
10,006
8,948
1,058
19,152
9,183
9,969
14,786
8,005
6,781
14,582
9,412
5,170
18,051
13,500
4,551
113,599
8,343
105,256
137,126
11,978
125,148
129,657
13,221
116,436
131,539
11,417
120,122
132,709
11,518
121,191
137,126
11,978
125,148
151,534
13,114
138,420
154,707
14,567
140,140
157,065
13,082
143,983
164,520
15,863
148,657
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.
1983
Account
1982
1983
1984
1985
1984
Q2
Q3
Q4
Ql
Q2
Q3
Q4
Ql'
2
3
4
5
6
1 Corporate profits with inventory valuation and
capital consumption adjustment
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
159.1
165.5
60.7
104.8
69.2
35.6
225.2
203.2
75.8
127.4
72.9
54.5
285.7
235.7
89.8
145.9
80.5
65.3
216.7
198.2
74.8
123.4
71.7
51.7
245.0
227.4
84.7
142.6
73.3
69.3
260.0
225.5
84.5
141.1
75.4
65.6
277.4
243.3
92.7
150.6
77.7
72.9
291.1
246.0
95.8
150.2
79.9
70.2
282.8
224.8
83.1
141.7
81.3
60.3
291.6
228.7
87.7
141.0
83.1
58.0
292.3
222.3
85.3
137.0
84.5
52.5
7 Inventory valuation
8 Capital consumption adjustment
-9.5
3.1
-11.2
33.2
-5.6
55.7
-12.1
30.6
-19.3
36.9
-9.2
43.6
-13.5
47.6
-7.3
52.3
-.2
58.3
-1.6
64.5
.9
69.1
SOURCE. Survey of Current Business (Department of Commerce).
A36
1.49
DomesticNonfinancialStatistics • August 1985
NONFINANCIAL CORPORATIONS
Assets and Liabilities
Billions of dollars, except for ratio
1983
1978
Account
1979
1980
1981
1984
1982
Q4
Ql
Q2
Q3
Q4
1,043.7
1,214.8
1,327.0
1,418.4
1,432.7
1,557.3
1,600.6
1,630.6
1,667.2
1,680.9
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
135.5
17.6
532.0
583.7
149.5
147.0
22.8
519.2
578.6
165.2
165.8
30.6
577.8
599.3
183.7
159.3
35.1
596.9
623.1
186.3
155.0
36.7
612.4
633.3
193.2
150.6
32.3
628.1
662.2
194.0
161.6
36.4
617.7
659.0
206.3
7 Current liabilities
669.5
807.3
889.3
970.0
976.8
1,043.0
1,079.0
1,111.9
1,143.3
1,149.6
8 Notes and accounts payable
9 Other
383.0
286.5
460.8
346.5
513.6
375.7
546.3
423.7
543.0
433.8
577.9
465.2
584.1
495.0
604.6
507.3
624.8
518.5
627.7
521.9
10 Net working capital
374.3
407.5
437.8
448.4
455.9
514.3
521.6
518.6
523.9
531.4
11 MEMO: Current ratio1
1.559
1.505
1.492
1.462
1.467
1.493
1.483
1.466
1.458
1.462
1 Current assets
2
3
4
5
6
Cash
U.S. government securities
Notes and accounts receivable
Inventories
Other
1. Ratio of total current assets to total current liabilities.
NOTE. For a description of this series, see "Working Capital of Nonfinancial
Statistics, Board of Governors of the Federal Reserve System, Washington, D.C.
20551.
SOURCE. Federal Trade Commission and Bureau of the Census.
C o r p o r a t i o n s " in the July 1978 BULLETIN, pp. 533-37.
All data in this table reflect the most current benchmarks. Complete data are
available upon request from the Flow of Funds Section, Division of Research and
1.50
TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment •
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1984
1983
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 Commercial and other2
1983
1984
Q4
Ql
Q2
Q3
Q4
Ql
Q21
Q31
304.78
353.74
386.10
325.45
337.48
348.34
361.12
367.21
371.16
385.31
392.61
53.08
63.12
65.95
72.43
75.24
80.74
57.56
66.19
61.26
68.71
63.12
72.21
68.31
73.72
71.13
75.07
69.87
75.78
75.72
79.83
77.83
82.96
15.19
16.88
16.06
16.27
17.61
16.01
16.96
16.93
15.66
16.47
16.19
4.88
4.36
4.72
6.77
3.55
6.17
7.35
4.09
6.21
6.04
3.75
5.48
5.76
3.23
5.96
7.46
3.52
6.06
7.47
3.73
6.50
6.40
3.73
6.16
6.02
4.20
6.01
7.44
3.60
6.12
8.30
4.54
6.47
37.27
7.70
114.45
37.09
10.30
134.39
35.23
12.51
148.68
37.79
8.07
124.30
38.36
8.77
127.83
37.82
10.07
132.07
36.82
11.07
136.55
35.37
11.31
141.10
36.65
11.81
145.17
35.35
12.36
148.42
33.93
12.83
149.56
•Trade and services are no longer being reported separately. They are included
in Commercial and other, line 10.
1. Anticipated by business.
1985
19851
2. "Other" consists of construction; wholesale and retail trade; finance and
insurance; personal and business services; and communication.
SOURCE. Survey of Current Business (Department of Commerce).
Securities Markets and Corporate Finance
1.51
DOMESTIC FINANCE COMPANIES
A37
Assets and Liabilities
Billions of dollars, end of period
1983
Account
1979
1978
1980
1981
1984
1982
Q4
Q3
Q2
Ql
Q3
ASSETS
1
2
3
4
5
6
7
8
Accounts receivable, gross
Consumer
Business
Total
LESS: Reserves for unearned income and losses....
Accounts receivable, net
Cash and bank deposits
Securities
All other
9 Total assets
52.6
63.3
116.0
15.6
100.4
3.5
1.3 1
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
89.5
81.0
170.4
30.5
139.8
92.3
86.8
179.0
30.1
148.9
92.8
95.2
188.0
30.6
157.4
96.9
101.1
198.0
31.9
166.1
99.6
104.2
203.8
33.4
170.4
103.4
103.2
206.6
34.7
171.9
24.9'
27.5
34.2
39.7
45.0
45.3
47.1
48.1
49.1
122.4
140.9
150.1
171.4
179.5
193.9
202.7
213.2
218.5
220.9
6.5
34.5
8.5
43.3
13.2
43.4
15.4
51.2
18.6
45.8
17.0
49.7
19.1
53.6
14.7
58.4
15.3
62.0
16.0
60.1
8.1
43.6
12.6
17.2
8.2
46.7
14.2
19.9
7.5
52.4
14.3
19.4
9.6
54.8
17.8
22.8
8.7
63.5
18.7
24.2
8.7
66.2
24.4
27.9
11.3
65.4
27.1
26.2
12.2
68.7
29.8
29.4
15.0
67.6
29.0
29.6
15.1
71.2
29.2
29.2
122.4
140.9
150.1
171.4
179.5
193.9
202.7
213.2
218.5
220.9
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
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
These data also appear in the Board's G.20 (422) release. For address, see
inside front cover.
Business Credit
Millions of dollars, seasonally adjusted except as noted
Type
Changes in accounts
receivable
Extensions
Repayments
1985
1985
1985
Accounts
receivable
outstanding
Apr. 30,
1985'
Feb.
1 Total
2
3
4
5
6
7
8
9
10
Retail financing of installment sales
Automotive (commercial vehicles)
Business, industrial, and farm equipment
Wholesale financing
Automotive
Equipment
All other
Leasing
Automotive
Equipment
Loans on commercial accounts receivable and factored commercial accounts receivable
All other business credit
1. Not seasonally adjusted.
Mar.
Apr.
Feb.
Mar.
Apr.
Feb.
Mar.
Apr.
143,292
869
873
2,045
26,444
26,283
25,833
25,575
25,410
23,788
11,751
20,196
43
-25
298
84
119
-102
797
1,272
1,060
1,427
889
1,063
754
1,297
762
1,343
770
1,165
20,899
4,808
6,841
709
-15
106
476
105
86
417
-213
-59
9,394
485
1,690
10,201
540
1,652
9,090
479
1,627
8,685
500
1,584
9,725
435
1,566
8,673
692
1,686
14,174
36,824
305
39
271
-252
538
628
966
916
872
1,222
1,093
1,313
661
877
601
1,474
555
685
16,718
11,081
-687
394
-419
224
835
-118
9,650
1,274
8,262
1,047
9,183
1,0%
10,337
880
8,681
823
8,348
1,214
NOTE. These data also appear in the Board's G.20 (422) release. For address,
see inside front cover.
A38
1.53
D o m e s t i c F i n a n c i a l S t a t i s t i c s • A u g u s t 1985
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1985
1984
Item
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
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)
94.6
69.8
76.6
27.6
2.95
14.47
92.8
69.5
77.1
26.7
2.40
12.20
96.8
73.7
78.7
27.8
2.64
11.87
99.5
75.2
77.9
27.5
2.54
12.27
102.6
76.9
77.9
28.0
2.65
12.05
94.8
71.4
77.9
27.7
2.65
11.77
101.8
76.5
77.6
28.1
2.58
11.74
91.3
69.9
79.8
27.2
2.65
11.42
101.4'
76.9'
78.9'
27.4'
2.65'
11.55'
108.4
1 0.1
76.2
27.1
2.51
11.59
7
8
Yield (percent per annum)
FHLBB series5
HUD series4
15.12
15.79
12.66
13.43
12.37
13.80
12.75
13.20
12.55
13.05
12.27
12.88
12.21
13.06
11.92
13.26
12.05
13.01
12.06
12.49
15.30
14.68
13.11
12.25
13.81
13.13
12.90
12.71
12.99
12.54
13.01
12.26
13.27
12.23
13.43
12.68
12.97
12.31
12.28
11.93
SECONDARY MARKETS
Yield (percent per annum)
5
9 FHA mortgages (HUD series)
6
10 GNMA securities
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11
12
13
14
15
16
17
FHA/VA-insured
Conventional
Mortgage transactions (during period)
Purchases
Mortgage commitments1
Contracted (during period)
Outstanding (end of period)
66,031
39,718
26,312
74,847
37,393
37,454
83,339
35,148
48,191
86,416
34,752
51,664
87,940
34,711
53,229
89,353
34,602
54,751
90,369
34,553
55,816
91,975
34,585
57,391
92,765
34,516
58,250
93,610
34,428
59,182
15,116
2
17,554
3,528
16,721
978
1,297
0
1,962
0
1,943
0
1,559
0
2,256
100
1,515
0
1,703
0
22,105
7,606
18,607
5,461
21,007
6,384
2,150
5,916
2,758
6,384
1,230
5,678
1,895
5,665
1,636
5,019
1,921
5,361
2,074
5,589
5,131
1,027
4,102
5,996
974
5,022
9,283
910
8,373
9,900
886
9,014
10,399
881
9,518
10,362
876
9,485
11,118
859
10,259
11,549
854
10,694
11,615
850
10,765
23,673
24,170
23,089
19,686
21,886
18,506
2,241
1,961
4,137
3,635
2,197
2,162
3,247
2,428
3,232
2,751
2,201
1,973
28,179
7,549
32,852
16,964
32,603
26,990
4,158
27,550
4,174
26,990
4,264
29,654
3,622
30,135
3,453
30,436
4,141
FEDERAL HOME LOAN MORTGAGE CORPORATION
Mortgage holdings (end of period)8
18
19
20
71
22
23
24
FHA/VA
Conventional
Mortgage transactions (during period)
Purchases
Mortgage commitments9
Contracted (during period)
Outstanding (end of period)
1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; compiled by the Federal Home Loan Bank
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages; from Department of Housing and Urban Development.
5. Average gross yields on 30-year, minimum-downpayment, Federal Housing
Administration-insured first mortgages for immediate delivery in the private
secondary market. Any gaps in data are due to periods of adjustment to changes in
maximum permissible contract rates.
n.a.
n.a.
6. Average net yields to investors on Government National Mortgage Association guaranteed, mortgage-backed, fully modified pass-through securities, assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying the
prevailing ceiling rate. Monthly figures are averages of Friday figures from the
Wall Street Journal.
7. Includes some multifamily and nonprofit hospital loan commitments in
addition to 1- to 4-family loan commitments accepted in FNMA's free market
auction system, and through the 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
1.54
A39
MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
1984
Type of holder, and type of property
1982
1983
Ql
1
?
3
4
5
AU holders
1- to 4-family
Multifamily
Commercial
6 Major financial institutions
7 Commercial banks'
1- to 4-family
8
9
Multifamily
10
Commercial
Farm
11
1985
1984
Q2
Q3
Q4
Ql
1,658,450
1,110,315
140,063
301,362
106,710
1,829,761
1,220,359
150,271
349,757
109,374
2,033,701
1,350,203
164,439
408,194
110,865
1,873,345
1,250,361
153,486
359,880
109,618
1,932,749
1,287,016
158,180
377,060
110,493
1,984,750
1,318,664
160,523
394,494
111,069
2,033,701
1,350,203
164,439
408,194
110,865
2,076,898
1,381,134
168,131
416,370
111,263
1,024,680
301,272
173,804
16,480
102,553
8,435
1,112,363
330,521
182,514
18,410
120,210
9,387
1,247,573
374,689
196,112
21,395
146,653
10,529
1,137,787
339,653
185,213
19,836
124,890
9,714
1,181,792
352,258
190,185
20,501
131,533
10,039
1,219,436
363,043
193,138
20,040
139,663
10,202
1,247,573
374,689
196,112
21,395
146,653
10,529
1,267,245
383,187
200,024
22,033
150,401
10,729
97,805
66,777
15,305
15,694
29
136,054
96,569
17,785
21,671
29
160,324
114,076
20,123
26,094
31
143,180
101,868
18,441
22,841
30
147,517
105,063
18,752
23,672
30
150,462
106,944
19,138
24,349
31
160,324
114,076
20,123
26,094
31
166,612
118,723
20,767
27,091
31
1?
n
14
i^
16
Mutual savings banks
1- to 4-family
Multifamily
Commercial
Farm
17
18
19
20
Savings and loan associations
1- to 4-family
Multifamily
Commercial
483,614
393,323
38,979
51,312
494,789
390,883
42,552
61,354
555,277
431,450
48,309
75,518
503,509
397,017
43,553
62,939
528,172
414,087
45,951
68,134
550,129
429,101
47,861
73,167
555,277
431,450
48,309
75,518
559,263
433,429
48,936
76,898
71
V
73
74
25
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
141,989
16,751
18,856
93,547
12,835
150,999
15,319
19,107
103,831
12,742
157,283
14,180
19,017
111,642
12,444
151,445
14,917
19,083
104,890
12,555
153,845
14,437
19,028
107,7%
12,584
155,802
14,204
18,828
110,149
12,621
157,283
14,180
19,017
111,642
12,444
158,183
14,153
19,114
112,641
12,275
138,138
4,227
676
3,551
147,370
3,395
630
2,765
157,377
2,301
585
1,716
150,784
2,900
618
2,282
152,669
2,715
605
2,110
153,355
2,389
594
1,795
157,377
2,301
585
1,716
162,416
1,964
576
1,388
76 Federal and related agencies
77 Government National Mortgage Association
78
1- to 4-family
Multifamily
29
30
31
3?
33
34
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
1,786
783
218
377
408
2,141
1,159
173
409
400
1,276
213
119
497
447
2,094
1,005
303
319
467
1,344
281
463
81
519
738
206
126
113
293
1,276
213
119
497
447
1,062
156
82
421
403
35
36
37
Federal Housing and Veterans
Administration
1- to 4-family
Multifamily
5,228
1,980
3,248
4,894
1,893
3,001
4,782
2,007
2,775
4,832
1,956
2,876
4,753
1,894
2,859
4,749
1,982
2,767
4,782
2,007
2,775
4,938
2,113
2,825
38
39
40
Federal National Mortgage Association
1- to 4-family
Multifamily
71,814
66,500
5,314
78,256
73,045
5,211
87,940
82,175
5,765
80,975
75,770
5,205
83,243
77,633
5,610
84,850
79,175
5,675
87,940
82,175
5,765
91,975
86,129
5,846
41
47
43
Federal Land Banks
1- to 4-family
Farm
50,350
3,068
47,282
51,052
3,000
48,052
50,679
2,948
47,731
51,004
2,982
48,022
51,136
2,958
48,178
51,182
2,954
48,228
50,679
2,948
47,731
50,929
2,998
47,931
44
45
46
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
4,733
4,686
47
7,632
7,559
73
10,399
9,654
745
8,979
8,847
132
9,478
8,931
547
9,447
8,841
606
10,399
9,654
745
11,548
10,642
906
216,654
118,940
115,831
3,109
285,073
159,850
155,801
4,049
332,057
179,981
175,084
4,897
296,481
166,261
161,943
4,318
305,051
170,893
166,415
4,478
317,548
175,770
171,095
4,675
332,057
179,981
175,084
4,897
347,793
185,954
180,878
5,076
47 Mortgage pools or trusts2
48 Government National Mortgage Association
49
1- to 4-family
Multifamily
50
51
57
53
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
42,964
42,560
404
57,895
57,273
622
70,822
70,253
569
59,376
58,776
600
61,267
60,636
631
63,964
63,352
612
70,822
70,253
569
76,759
75,781
978
54
55
56
Federal National Mortgage Association3
1- to 4-family
Multifamily
14,450
14,450
n.a.
25,121
25,121
n.a.
36,215
35,965
250
28,354
28,354
n.a.
29,256
29,256
n.a.
32,888
32,730
158
36,215
35,965
250
39,370
38,772
598
57
58
59
60
61
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
40,300
20,005
4,344
7,011
8,940
42,207
20,404
5,090
7,351
9,362
45,039'
21,813
5,841
7,559
9,826
42,490
20,573
5,081
7,456
9,380
43,635
21,331
5,081
7,764
9,459
44,926
21,595
5,618
7,844
9,869
45,039
21,813
5,841
7,559
9,826
45,710
21,928
6,041
7,681
10,060
278,978
189,121
30,208
30,868
28,781
284,955
189,189
31,433
34,931
29,402
296,694
193,688
32,918
40,231
29,857
288,293
190,522
31,776
36,545
29,450
293,237
193,304
32,169
38,080
29,684
294,411
192,753
32,624
39,209
29,825
296,694
193,688
32,918
40,231
29,857
299,444
194,832
33,541
41,237
29,834
4
6? Individual and others
63 1- to 4-family5
64 Multifamily
65 Commercial
66 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. 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 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 • August 1985
CONSUMER INSTALLMENT CREDIT' Total Outstanding, and Net Change A
Millions of dollars
1984
Holder, and type of credit
1983
1985
1984
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
Amounts outstanding (end of period)
1 Total
383,701
460,500
430,795
437,469
441,358
447,783
460,500
461,530
463,628
471,567
479,935
By major holder
Commercial banks
Finance companies . . . .
Credit unions
Retailers2
Savings and loans
Gasoline companies . . .
Mutual savings banks ..
171,978
87,429
53,471
37,470
23,108
4,131
6,114
212,391
96,747
67,858
40,913
29,945
4,315
8,331
199,654
94,070
62,679
35,359
26,922
4,452
7,659
202,452
95,594
63,808
35,595
27,880
4,328
7,812
204,582
95,113
64,716
35,908
28,781
4,290
7,968
206,635
95,753
66,528
37,124
29,358
4,217
8,168
212,391
96,747
67,858
40,913
29,945
4,315
8,331
213,951
96,732
68,538
38,978
30,520
4,329
8,482
215,778
97,360
68,939
37,483
31,405
4,012
8,651
219,970
99,133
70,432
37,082
32,349
3,820
8,781
223,850
101,324
71,418
37,091
33,514
3,834
8,904
By major type of credit
9 Automobile
10 Commercial banks...
11 Credit unions
12 Finance companies ..
143,114
67,557
25,574
49,983
172,589
85,501
32,456
54,632
165,177
81,786
29,979
53,412
167,231
82,706
30,519
54,006
168,923
83,620
30,953
54,350
170,731
84,326
31,820
54,585
172,589
85,501
32,456
54,632
173,769
86,223
32,781
54,765
175,491
87,333
32,973
55,185
179,661
89,257
33,687
56,717
183,558
90,915
34,159
58,484
13 Revolving
14 Commercial banks...
15 Retailers
16 Gasoline companies .
81,977
44,184
33,662
4,131
101,555
60,549
36,691
4,315
88,202
52,313
31,437
4,452
90,231
54,258
31,645
4,328
91,505
55,276
31,939
4,290
93,944
56,641
33,086
4,217
101,555
60,549
36,691
4,315
100,565
61,445
34,791
4,329
99,316
61,978
33,326
4,012
100,434
63,684
32,930
3,820
101,887
65,127
32,926
3,834
17 Mobile home
18 Commercial banks...
19 Finance companies ..
20 Savings and loans . . .
21 Credit unions
23,862
9,842
9,547
3,906
567
24,556
9,610
9,243
4,985
718
24,947
9,711
9,992
4,581
663
25,198
9,761
10,065
4,697
675
24,573
9,627
9,470
4,791
685
24,439
9,613
9,235
4,887
704
24,556
9,610
9,243
4,985
718
24,281
9,498
9,053
5,005
725
24,379
9,456
9,044
5,150
729
24,456
9,425
8,981
5,305
745
24,675
9,432
8,992
5,4%
755
22 Other
23 Commercial banks...
24 Finance companies ..
25 Credit unions
26 Retailers
27 Savings and loans . . .
28 Mutual savings banks
134,748
50,395
27,899
27,330
3,808
19,202
6,114
161,800
56,731
32,872
34,684
4,222
24,960
8,331
152,469
55,844
30,666
32,037
3,922
22,341
7,659
154,809
55,727
31,523
32,614
3,950
23,183
7,812
156,357
56,059
31,293
33,078
3,969
23,990
7,968
158,669
56,055
31,933
34,004
4,038
24,471
8,168
161,800
56,731
32,872
34,684
4,222
24,960
8,331
162,915
56,785
32,914
35,032
4,187
25,515
8,482
164,442
57,011
33,131
35,237
4,157
26,255
8,651
167,016
57,604
33,435
36,000
4,152
27,044
8,781
169,815
58,376
33,848
36,504
4,165
28,018
8,904
2
3
4
5
6
7
8
Net change (during period)
29 Total
48,742
76,799
6,022
4,982
5,631
6,080
6,819
7,223
9,041
8,342
8,270
By major holder
Commercial banks
Finance companies
Credit unions
Retailers2
Savings and loans
Gasoline companies . . .
Mutual savings banks ..
19,488
18,572
6,218
5,075
7,285
68
1,322
40,413
18,636
14,387
3,443
6,837
184
2,217
2,631
1,381
927
197
804
-63
145
1,384
1,571
871
225
770
-38
199
2,756
398
1,224
128
864
98
163
2,483
778
1,731
278
546
86
178
3,028
1,1%
1,336
389
576
117
177
3,799
901
1,290
251
922
-91
151
5,071
1,203
1,423
269
997
-102
180
4,847
2,048
797
91
715
-142
-14
3,853
1,885
1,215
168
1,063
-45
131
By major type of credit
37 Automobile
38 Commercial banks...
39 Credit unions
40 Finance companies ..
16,856
8,002
2,978
11,752
29,475
17,944
6,882
9,298
2,482
1,150
444
888
1,513
434
416
663
2,504
1,057
587
860
2,549
1,019
828
702
2,687
1,275
640
772
2,887
1,616
598
673
3,198
1,790
6%
712
3,391
1,767
381
1,243
3,488
1,546
580
1,362
41 Revolving
42 Commercial banks...
43 Retailers
44 Gasoline companies .
12,353
7,518
4,767
68
19,578
16,365
3,029
184
1,263
1,159
167
-63
1,484
1,323
199
-38
1,488
1,279
111
98
1,614
1,289
239
86
1,445
1,001
327
117
1,957
1,809
239
-91
2,527
2,429
200
-102
2,631
2,698
75
-142
2,126
2,003
168
-45
45 Mobile home
46 Commercial banks...
47 Finance companies ..
48 Savings and loans . . .
49 Credit unions
1,452
237
776
763
64
694
-232
-608
1,079
151
217
4
63
140
10
127
4
19
95
9
-392
-91
-381
67
13
-91
-1
-192
84
18
117
29
-13
88
13
-159
-89
-144
60
14
282
41
33
192
16
-11
-50
-63
92
10
218
19
13
175
11
50 Other
51 Commercial banks...
52 Finance companies ..
53 Credit unions
54 Retailers
55 Savings and loans . . .
56 Mutual savings banks
18,081
3,731
6,044
3,176
308
6,522
1,322
27,052
6,336
9,946
7,354
414
5,758
2,217
2,060
318
430
473
30
664
145
1,858
-377
889
446
26
675
199
2,031
511
-81
624
17
797
163
2,008
176
268
885
39
462
178
2,570
723
437
683
62
488
177
2,538
463
372
678
12
862
151
3,034
811
458
711
69
805
180
2,331
432
868
406
16
623
-14
2,438
285
510
624
0
888
131
30
31
32
33
34
35
36
• These data have not been revised this month due to revisions that were not
available at time of publication.
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.
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, $85.9 billion at the end of
1982, $96.9 billion at the end of 1983, and $116.6 billion at the end of 1984.
These data also appear in the Board's G.19 (421) release. For address, see
inside front cover.
Consumer Installment Credit
1.56
A41
TERMS OF CONSUMER INSTALLMENT CREDIT
Percent unless noted otherwise
1984
Item
1982
1985
1984
1983
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
INTEREST RATES
1
2
3
4
5
6
Commercial banks' 2
48-month new car
24-month personal
120-month mobile home2
Credit card
Auto finance companies
New car
Used car
16.82
18.64
18.05
18.51
13.92
16.50
16.08
18.78
13.71
16.47
15.58
18.77
n.a.
n.a.
n.a.
n.a.
13.91
16.63
15.60
18.82
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
13.37
16.21
15.42
18.85
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
16.15
20.75
12.58
18.74
14.62
17.85
15.18
18.19
15.24
18.30
15.24
18.34
15.11
17.88
13.78
17.91
12.65
17.78
11.92
17.78
45.9
37.0
45.9
37.9
48.3
39.7
49.7
39.9
50.0
39.9
50.2
39.8
50.7
41.3
51.4
41.1
52.2
41.3
51.5
41.3
85
90
86
92
88
92
88
93
89
93
89
93
90
93
90
93
91
93
91
93
8,178
4,746
8,787
5,033
9,333
5,691
9,449
5,826
9,577
5,900
9,707
5,975
9,654
5,951
9,196
5,968
9,232
5,976
9,305
6,043
OTHER TERMS3
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
1. Data for midmonth of quarter only.
2. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
3. At auto finance companies.
NOTE. These data also appear in the Board's G.19 (421) release. For address,
see inside front cover,
A42
1.57
DomesticNonfinancialStatistics • August 1985
F U N D S RAISED IN U.S. CREDIT MARKETS
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1982
HI
1984r
1983
H2
HI
H2
HI
H2
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
5 Private domestic nonfinancial sectors
6 Debt capital instruments
7
Tax-exempt obligations
8
Corporate bonds
9
Mortgages
10
Home mortgages
11
Multifamily residential
12
Commercial
Farm
13
386.0
344.6
380.4
404.1
526.4
734.2
358.1
450.1
448.9
563.8
688.9
779.4
37.4
38.8
-1.4
79.2
79.8
-.6
87.4
87.8
-.5
161.3
162.1
-.9
186.6
186.7
-.1
198.8
199.0
-.2
104.1
105.5
-1.4
218.4
218.8
-.4
222.0
222.1
-.1
151.1
151.2
-.1
177.4
177.6
-.2
220.2
220.3
-.1
348.6
211.2
30.3
17.3
163.6
120.0
7.8
23.9
11.8
265.4
192.0
30.3
26.7
135.1
96.7
8.8
20.2
9.3
293.1
159.1
22.7
21.8
114.6
76.0
4.3
24.6
9.7
242.8
158.9
53.8
18.7
86.5
52.5
5.5
23.6
5.0
339.8
239.3
56.3
15.7
167.3
108.7
8.4
47.3
2.9
535.4
300.7
58.9
37.0
204.7
129.9
14.3
59.0
1.5
254.0
140.7
43.9
12.0
84.8
53.6
5.1
19.7
6.5
231.7
177.2
63.7
25.3
88.2
51.3
5.8
27.5
3.5
266.9
214.4
62.8
23.0
128.6
83.8
2.8
40.3
1.6
412.7
264.2
49.7
8.4
206.0
133.6
13.9
54.3
4.1
511.5
262.4
21.7
28.9
211.8
137.5
16.7
56.0
1.6
559.2
338.9
96.1
45.1
197.7
122.2
12.0
62.0
1.4
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
137.5
45.4
51.2
11.1
29.7
73.4
6.3
36.7
5.7
24.8
134.0
26.7
54.7
19.2
33.4
83.9
21.0
55.5
-4.1
11.5
100.5
51.3
27.3
-1.2
23.1
234.7
96.5
77.4
23.8
37.1
113.2
20.6
69.0
10.0
13.6
54.6
21.4
42.0
-18.2
9.4
52.5
35.9
13.3
-10.6
13.9
148.5
66.6
41.2
8.3
32.3
249.1
102.1
91.2
31.5
24.3
220.3
90.9
63.6
16.0
49.8
19
20
21
22
23
24
By borrowing sector
State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
348.6
17.6
179.3
21.4
34.4
96.0
265.4
17.2
122.1
14.4
33.7
78.1
293.1
6.2
127.5
16.3
40.2
102.9
242.8
31.3
94.5
7.6
39.5
70.0
339.8
36.7
175.4
4.3
63.9
59.5
535.4
36.8
241.7
2.3
78.8
175.8
254.0
24.1
94.7
9.6
36.6
89.0
231.7
38.5
94.3
5.6
42.3
51.0
266.9
41.9
134.8
.8
50.1
39.3
412.7
31.6
216.0
7.9
77.6
79.6
511.5
3.0
240.8
.9
83.1
183.7
559.2
70.5
242.5
3.8
74.4
167.9
25 Foreign net borrowing in United States
26 Bonds
27 Bank loans n.e.c
28 Open market paper
29 U.S. government loans
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
6.7
-6.2
10.7
4.5
18.9
3.8
4.9
6.0
4.3
.6
4.1
-7.8
.4
4.0
10.2
2.4
-7.6
12.5
3.0
21.2
11.0
-4.7
9.0
6.0
15.3
4.6
11.3
-4.6
3.9
22.5
2.9
-1.5
16.5
4.6
19.2
1.1
-6.0
18.9
5.2
-18.0
7.0
-9.6
-18.1
2.7
406.2
371.8
407.6
419.8
545.3
734.8
368.3
471.4
504.2
586.3
708.1
761.4
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
IS
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
82.4
62.9
84.1
69.0
90.7
131.1
84.2
53.8
74.0
107.3
123.4
138.8
47.9
24.3
23.1
.6
34.5
7.8
47.4
30.5
15.0
1.9
36.7
-.8
-.5
.9
20.9
16.2
64.9
14.9
49.5
.4
4.1
2.5
.1
1.9
-1.2
.8
67.8
1.4
66.4
74.4
30.4
43.9
66.2
-4.1
70.3
69.4
6.9
62.5
69.1
30.8
38.3
79.6
30.1
49.5
22.9
17.1
56.8
18.8
38.0
18.9
54.3
17.0
59.2
20.6
1.0
21.3
15.7
-16.0
7.6
.1
.6
-14.7
-9.5
7.8
15.2
-.2
13.0
-7.0
60.0
22.4
36.8
.8
24.2
-2.5
.1
3.2
12.3
11.1
69.7
7.5
62.2
-.5
18.0
9.2
44.8
24.4
19.2
1.2
18.1
7.1
-.1
-.9
4.8
7.1
-2.5
7.2
-12.1
2.2
18.8
-2.0
.1
21.5
15.7
1.8
21.1
15.7
24.8
23.1
34.5
1.6
6.5
12.6
16.5
-1.3
25.6
19.2
18.1
.5
6.9
7.4
5.8
-2.2
32.4
15.0
36.7
.4
8.3
15.5
12.8
.2
15.3
49.5
4.1
1.2
1.9
2.5
-.9
.1
1.4
66.4
22.9
.5
8.6
-2.7
17.0
.2
30.4
43.9
56.8
4.4
10.9
22.7
19.5
.1
.1
7.5
62.2
-16.0
1.7
-5.8
-9.3
-1.9
.1
-4.1
70.3
7.8
.8
6.1
-10.0
11.4
.2
6.9
62.5
38.0
.2
11.1
4.5
22.7
.2
30.8
38.3
54.3
4.8
20.0
19.1
10.9
.1
30.1
49.5
59.2
3.9
1.8
26.2
28.1
.1
452.5
163.5
43.9
11.8
84.8
20.6
64.6
34.8
28.5
525.1
288.3
63.7
43.8
88.2
21.4
37.9
-23.9
5.9
578.2
288.4
62.8
42.8
128.5
35.9
22.1
-8.0
5.7
693.6
220.5
49.7
30.3
206.0
66.6
41.9
43.6
35.0
831.5
246.7
21.7
46.9
211.7
102.1
85.3
71.8
45.2
900.2
299.8
96.1
72.8
197.6
90.9
55.8
19.0
68.2
52.0
28.9
23.1
18.4
2.5
2.2
-43.3
39.0
-82.3
-84.5
2.9
-.7
-27.5
35.9
-63.4
-69.4
3.2
2.9
*
*
*
23.2
36.8
24.2
.7
9.7
14.3
*
*
*
*
*
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
488.7
84.8
30.3
29.0
163.5
45.4
52.9
40.3
42.4
434.7
122.9
30.3
34.6
134.9
6.3
47.3
20.6
37.8
491.8
133.0
22.7
26.4
113.9
26.7
59.3
54.0
55.8
488.8
225.9
53.8
27.8
86.5
21.0
51.2
5.4
17.2
635.9
254.4
56.3
36.5
167.2
51.3
32.0
17.8
20.3
865.9
273.3
58.9
59.9
204.6
96.5
70.6
45.4
56.7
External corporate equity funds raised in United States
59 Total new share issues
60 Mutual funds
61 All other
Nonfinancial corporations
62
63
Financial corporations
64
Foreign shares purchased in United States
-3.8
.1
-3.9
-7.8
3.2
.8
22.2
5.2
17.1
12.9
2.1
2.1
-4.1
6.3
-10.4
-11.5
.8
.3
35.3
18.4
16.9
11.4
4.0
1.5
67.8
32.8
34.9
28.3
2.7
4.0
-35.4
37.5
-72.9
-77.0
3.0
1.1
23.3
12.5
10.9
7.0
3.9
-.1
47.2
24.3
22.9
15.8
4.1
3.0
83.5
36.8
46.8
38.2
2.8
5.7
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.
1982
Transaction category, or sector
1979
1980
1981
1982
1983
1984r
1983
I984r
HI
H2
HI
H2
HI
H2
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
386.0
344.6
380.4
404.1
526.4
734.2
358.1
450.1
488.9
563.8
688.9
779.4
By public agencies and foreign
? Total net advances
3 U.S. government securities
4 Residential mortgages
5 FHLB advances to savings and loans
6 Other loans and securities
75.2
-6.3
35.8
9.2
36.5
97.0
15.7
31.7
7.1
42.4
97.7
17.2
23.5
16.2
40.9
109.1
18.0
61.0
.8
29.3
117.1
27.6
76.1
-7.0
20.5
142.3
36.0
56.0
15.7
34.6
100.8
9.7
47.6
11.1
32.4
117.3
26.2
74.4
-9.5
26.2
119.7
40.5
80.1
-12.1
11.1
114.6
14.6
72.0
-2.0
29.9
125.0
33.4
52.0
15.7
23.9
159.5
38.5
60.0
15.7
45.3
7
8
9
10
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
19.0
53.0
7.7
-4.6
23.7
45.6
4.5
23.2
24.1
48.2
9.2
16.3
16.0
65.3
9.8
18.1
9.7
69.5
10.9
27.1
18.8
72.1
8.4
42.9
14.8
61.8
3.8
20.4
17.1
68.7
15.7
15.8
9.1
68.2
15.6
26.8
10.3
70.7
6.2
27.4
7.4
73.0
17.1
27.5
30.2
71.2
-.3
58.4
11
12
Agency and foreign borrowing not in line 1
Sponsored credit agencies and mortgage pools
Foreign
47.9
20.2
44.8
27.2
47.4
27.2
64.9
15.7
67.8
18.9
74.4
.6
60.0
10.2
69.7
21.2
66.2
15.3
69.4
22.5
69.1
19.2
79.6
-18.0
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
379.0
91.1
30.3
18.5
91.9
156.3
9.2
319.6
107.2
30.3
19.3
73.7
96.2
7.1
357.3
115.8
22.7
18.8
56.7
159.5
16.2
375.6
207.9
53.8
14.8
-3.2
103.2
.8
495.9
226.9
56.3
14.6
40.9
150.2
-7.0
666.9
237.3
58.9
25.1
88.1
273.1
15.7
327.5
153.7
43.9
-.1
11.0
130.2
11.1
423.8
262.0
63.7
29.6
-17.4
76.3
-9.5
450.8
247.8
62.8
22.9
6.4
98.7
-12.1
541.1
205.9
49.7
6.3
75.5
201.7
-2.0
652.2
213.2
21.7
22.8
102.2
308.0
15.7
681.5
261.3
96.1
27.5
74.1
238.1
15.7
Private financial intermediation
70 Credit market funds advanced by private financial
institutions
Commercial banking
71
?? Savings institutions
73
Insurance and pension funds
24 Other finance
313.9
123.1
56.5
85.9
48.5
281.5
100.6
54.5
94.3
32.1
323.4
102.3
27.8
97.4
96.0
285.6
107.2
31.3
108.8
38.3
376.7
136.1
136.8
98.8
5.0
544.8
179.9
145.1
113.0
106.8
274.4
99.9
25.2
111.4
37.9
296.7
114.5
37.4
106.3
38.6
323.2
121.6
128.9
89.5
-16.8
430.1
150.6
144.6
108.1
26.8
535.1
193.0
163.9
96.8
81.2
554.6
166.8
126.3
129.1
132.3
76
27
Sources of funds
Private domestic deposits and RPs
Credit market borrowing
313.9
137.4
34.5
281.5
169.6
18.1
323.4
211.9
36.7
285.6
174.7
4.1
376.7
203.5
22.9
544.8
288.6
56.8
274.4
147.6
24.2
296.7
201.9
-16.0
323.2
192.7
7.8
430.1
214.2
38.0
535.1
283.5
54.3
554.6
293.6
59.2
78
79
30
31
32
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
142.0
27.6
74.8
-8.7
-1.1
90.4
-5.9
106.7
-26.7
104.6
22.8
150.4
22.1
-5.3
99.2
34.4
199.5
16.6
4.0
106.2
72.7
102.6
-28.3
-2.0
111.4
21.5
110.8
-25.1
14.1
97.8
24.1
122.8
-14.2
10.1
90.0
36.8
177.9
58.5
-20.8
108.4
31.9
197.3
15.7
.9
107.6
73.1
201.7
17.5
72.8
41.2
93.9
-21.7
-2.6
83.9
34.2
Private domestic nonfinancial investors
33 Direct lending in credit markets
U.S. government securities
State and local obligations
36 Corporate and foreign bonds
37 Open market paper
38 Other
99.6
52.5
9.9
-1.4
8.6
30.0
56.1
24.6
7.0
-5.7
-3.1
33.3
70.6
29.3
10.5
-8.1
2.7
36.3
94.2
37.4
34.4
-5.2
-.1
27.8
142.1
88.7
42.5
2.0
3.9
5.0
178.8
121.7
33.3
3.6
-.8
21.0
77.3
35.3
30.1
-17.7
3.5
26.2
111.0
39.5
38.7
7.3
-3.7
29.3
135.3
95.9
52.7
-1.7
-8.1
-3.4
148.9
81.4
32.3
5.7
15.9
13.5
171.5
131.3
5.6
15.3
-.3
19.6
186.1
112.2
61.0
-8.2
-1.3
22.4
39 Deposits and currency
40 Currency
Checkable deposits
47 Small time and savings accounts
43
Money market fund shares
44 Large time deposits
45
Security RPs
46 Deposits in foreign countries
146.8
8.0
18.3
59.3
34.4
18.8
6.6
1.5
181.1
10.3
5.2
82.9
29.2
45.8
6.5
1.1
221.9
9.5
18.0
47.0
107.5
36.9
2.5
.5
181.9
9.7
15.7
138.2
24.7
-7.7
3.8
-2.5
222.6
14.3
21.7
219.1
-44.1
-7.5
14.3
4.8
290.3
8.6
22.8
149.2
47.2
76.2
-6.8
-6.9
152.1
6.7
1.9
83.2
39.4
21.9
1.1
-2.2
211.7
12.7
29.5
193.1
10.0
-37.3
6.6
-2.9
214.5
14.8
48.0
278.6
-84.0
-61.0
11.0
7.0
230.7
13.8
-4.7
159.7
-4.2
45.9
17.5
2.7
294.9
17.7
36.6
123.0
30.2
92.4
1.3
-6.3
285.7
-.5
8.9
175.5
64.2
59.9
-15.0
-7.5
Total of credit market instruments, deposits and
currency
246.5
237.2
292.5
276.1
364.7
469.1
229.4
322.7
349.8
379.6
466.4
471.8
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
18.5
82.8
23.0
26.1
88.1
1.5
24.0
90.5
7.6
26.0
76.0
-8.6
21.5
76.0
49.2
19.4
81.7
59.5
27.4
83.8
-7.9
24.9
70.0
-9.3
23.7
71.7
12.6
19.5
79.5
85.9
17.6
82.0
43.1
21.0
81.4
75.9
MEMO: Corporate equities not included above
51 Total net issues
Mutual fund shares
Other equities
Acquisitions by financial institutions
55 Other net purchases
-3.8
-3.9
12.9
-16.7
22.2
5.2
17.1
24.9
-2.7
-4.1
6.3
-10.4
20.1
-24.2
35.3
18.4
16.9
39.2
-3.9
67.8
32.8
34.9
57.5
10.2
-35.4
37.5
-72.9
21.9
-57.2
23.3
12.5
10.9
11.0
12.3
47.2
24.3
22.9
67.3
-20.1
83.5
36.8
46.8
75.9
7.6
52.0
28.9
23.1
39.2
12.8
-43.3
39.0
-82.3
7.6
-50.8
-27.5
35.9
-63.4
36.2
-63.6
75
34
35
41
47
48
49
50
57
53
54
.4
.1
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.
6.1
7.1
104.8
72.3
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 Financial Statistics •
August
NONFINANCIAL BUSINESS ACTIVITY
1985
Selected Measures'
1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1984
Measure
1982
1983
1985
1984
Sept.'
Oct.'
Nov.'
Dec.
1
Industrial production
103. 1'
109.2'
121.8'
123.3
122.7
123.4
123.3'
2
3
4
5
6
7
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
107.8'
109.5'
101.4'
120.2'
101.7'
96.7'
113.9<114.7'
109.3'
121.7'
111.2'
102.8'
127.1'
127.8'
118.2'
140.5'
124.9'
114.6'
128.8
129.8
118.3
145.0
125.6
115.9
129.0
129.9
118.5
145.0
126.2
114.2
129.9
130.7
119.6
145.5
127.2
114.6
129.8'
130.6'
119.7'
144.9'
127.3'
102.2'
110.2'
123.9'
125.6
125.5
126.0
125.8'
71.1
70.1
75.2
75.2
81.6
82.0
82.0
82.4
81.7
81.0
81.6
80.9
81.4
80.4
Industry groupings
8 Manufacturing
Capacity utilization (percent)2
9
Manufacturing
10
Industrial materials industries
3
Jan.'
Feb.'
Mar.'
Apr.'
May
n a.
n a.
n a.
n a.
n a.
U4.&
11
Construction contracts (1977 = 100)
111.0
137.0
149.0
146.0
145.0
151.0
150.0
150.0
145.0
162.0
161.0
162.0
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 6 personal income5
Retail sales
136.1
102.2
96.6
89.1
154.7
410.3
367.4
285.5
398.0
326.0
137.0
100.4
95.1
87.9
157.1
435.6
388.6
294.7
427.1
373.0
143.1
106.8
100.7
94.0
163.0
478.1
422.5
323.6
470.3
412.0
144.7
106.6
100.2
93.2
165.6
487.0
428.4
325.7
479.1
414.1
145.2
106.9
100.5
93.5
166.3
488.8
428.8
326.7
480.6
416.4
145.7
107.1
100.5
93.5
166.9
491.7
432.6
330.0
482.9
421.3
146.0
107.5
100.8
93.7
167.2
493.9
436.7
333.2
484.5
422.3
146.5
107.7
100.8
93.6
167.8
496.7
438.5
334.4
487.6
424.0
146.8
107.5
100.6
93.3
168.3
499.4
440.5
332.9
484.7
428.3
147.3
107.5
100.4
93.0
169.1
501.0
443.7
334.8
481.3
427.4
147.6
107.7
100.1
92.6
169.5
506.1
445.8
333.3
497.2
440.8
148.1
107.7
100.0
92.5
170.3
503.5
447.1
333.9
505.3
437.8
22
23
Prices7
Consumer
Producer finished goods
289.1
280.7
298.4
285.2
311.1
291.2
314.5
289.5
315.3
291.5
315.3
292.3
315.5
292.(X
316.1
292.3
317.4
292.5
318.8
292.4
320.1
293.1
321.3
294.2
1. A major revision of the industrial production index and the capacity
utilization rates was released in July 1985. See "A Revision of the Index of
Industrial Production" and accompanying tables that contain revised indexes
(1977=100) t h r o u g h D e c e m b e r 1984 in the FEDERAL RESERVE BULLETIN, vol. 71
(July 1985), pp. 487-501. The revised indexes for January through June 1985 will
be shown in the September BULLETIN.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, Department of Commerce, and other sources.
3. Index of dollar value of total construction contracts, including residential,
nonresidential and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
5. Based on data in Survey of Current Business (U.S. Department of Commerce).
6. Based on Bureau of Census data published in Survey of Current Business.
7. Data without seasonal adjustment, as published in Monthly Labor Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5, and 6,
and indexes for series mentioned in notes 3 and 7 may also be found in the Survey
of Current Business.
Figures for industrial production for the last two months are preliminary and
estimated, respectively.
Selected Measures
2.11
A45
LABOR FORCE, EMPLOYMENT, A N D UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1984
Category
1982
1983
1985
1984
Oct/
Nov/
Dec/
Jan/
Feb/
Mar/
Apr.
May
HOUSEHOLD SURVEY DATA
1 Noninstitutional population1
174,450
176,414
178,602
179,181
179,353
179,524
179,600
179,742
179,891
180,024
180,171
2 Labor force (including Armed Forces)1
3 Civilian labor force
Employment
4
Nonagricultural industries2
5
Agriculture
Unemployment
6
Number
7
Rate (percent of civilian labor force) . . .
8 Not in labor force
112,383
110,204
113,749
111,550
115,763
113,544
116,241
114,016
116,292
114,074
116,682
114,464
117,091
114,875
117,310
115,084
117,738
115,514
117,596
115,371
117,600
115,373
96,125
3,401
97,450
3,383
101,685
3,321
102,480
3,169
102,598
3,334
102,888
3,385
103,071
3,320
103,345
3,340
103,757
3,362
103,517
3,428
103,648
3,312
10,678
9.7
62,067
10,717
9.6
62,665
8,539
7.5
62,839
8,367
7.3
62,940
8,142
7.1
63,061
8,191
7.2
62,842
8,484
7.4
62,509
8,399
7.3
62,432
8,396
7.3
62,153
8,426
7.3
62,428
8,413
7.3
62,571
89,566
90,138
94,166
95,573
95,882
96,092
96,419
96,591
96,910
97,118''
97,463
18,781
1,128
3,905
5,082
20,457
5,341
19,036
15,837
18,497
957
3,940
4,958
20,804
5,467
19,665
15,851
19,589
999
4,315
5,169
21,790
5,665
20,666
15,973
19,536
979
4,403
5,223
22,495
5,737
21,087
16,113
19,553
978
4,424
5,229
22,641
5,755
21,184
16,118
19,603
973
4,469
5,246
22,691
5,776
21,252
16,082
19,604
974
4,534
5,259
22,776
5,790
21,382
16,100
19,561
976
4,525
5,272
22,857
5,809
21,480
16,111
19,526
977
4,553
5,269
22,963
5,835
21,644
16,143
19,469'
981'
4,648'
5,286'
23,013'
5,858
21,723'
16,140'
19,441
977
4,680
5,307
23,145
5,891
21,834
16,188
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment3
10
11
12
13
14
15
16
17
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
1. Persons 16 years of age and over. Monthly figures, which are based on
sample data, relate to the calendar week that contains the 12th day ; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the March 1984
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A46
2.12
D o m e s t i c N o n f i n a n c i a l S t a t i s t i c s • A u g u s t 1985
OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION
Seasonally adjusted
1985
1984
Q2
Q3
Q4
1984
Ql'
Q2
Output (1967 = 100)
Q3
1985
Q4
Ql
Capacity (percent of 1967 output)
1984
Q3
Q2
1985
Q4
Ql'
Utilization rate (percent)
1 Total industry
163.1
165.6
164.7
165.5
199.7
201.1
202.4
204.0
81.7
82.4
81.3
81.1
2 Mining
3 Utilities
125.1
183.1
129.0
181.1
124.3
183.0
126.1
186.4
165.9
215.3
166.1
216.8
166.3
218.3
166.5
219.8
75.4
85.0
77.7
83.5
74.7
83.8
75.7
84.8
4 Manufacturing
164.4
167.2
166.5
166.8
201.0
202.5
204.0
205.7
81.8
82.5
81.6
81.1
5 Primary processing . . .
6 Advanced processing
162.5
165.2
162.2
169.7
159.8
169.6
160.8
170.4
197.2
203.0
198.0
204.9
198.7
206.8
199.7
208.9
82.4
81.4
81.9
82.8
80.4
82.0
80.5
81.6
7 Materials
162.1
163.4
160.2
161.3
195.9
197.2
198.4
199.7
82.7
82.9
80.7
80.7
8 Durable goods
9 Metal materials . . . .
10 Nondurable goods....
11 Textile, paper, and chemical..
12
Paper
Chemical
13
162.0
100.3
186.6
195.9
168.5
240.4
164.6
97.2
185.7
194.9
171.0
238.4
162.1
91.0
181.5
189.6
168.3
233.5
161.8
92.5
181.5
189.3
166.7
234.7
198.3
138.5
223.4
236.2
169.5
305.2
199.5
137.9
225.2
238.2
170.5
308.0
200.8
137.3
226.9
240.3
171.5
310.9
202.4
136.8
228.4
242.0
172.5
313.5
81.7
72.4
83.5
82.9
99.4
78.8
82.5
70.5
82.5
81.8
100.3
77.4
80.7
66.3
80.0
79.0
98.1
75.1
79.9
67.6
79.5
78.2
96.7
74.9
14 Energy materials
132.4
133.1
129.4
135.2
156.4
157.0
157.6
158.4
84.6
84.8
82.1
85.4
Previous cycle1
High
Low
Latest cycle2
1984
Low
May
High
1984
Sept.
Oct.
1985
Nov.
Dec.
Jan.
Feb.'
Mar.'
Apr.'
May
Capacity utilization rate (percent)
15 Total industry
88.4
71.1
87.3
69.6
81.5
81.9
81.4
81.4
81.2
81.1
81.1
81.1
80.7
80.3
16 Mining
17 Utilities
91.8
94.9
86.0
82.0
88.5
86.7
69.6
79.0
75.4
84.7
77.4
83.2
74.3
82.9
75.1
84.6
74.8
83.9
75.4
83.7
75.4
85.6
76.4
85.0
74.2
85.2
73.7
85.6
18 Manufacturing
87.9
69.0
87.5
68.8
81.7
82.0
81.7
81.6
81.4
81.2
81.0
81.1
80.7
80.4
19 Primary processing . . .
20 Advanced processing .
93.7
85.5
68.2
69.4
91.4
85.9
66.2
70.0
82.4
81.2
81.5
82.4
81.2
81.8
80.6
82.0
79.5
82.2
80.1
82.0
80.7
81.4
80.7
81.4
80.3
80.8
79.9
80.5
21 Materials
92.6
69.3
88.9
66.6
82.7
82.4
81.0
80.9
80.4
80.5
80.9
80.8
80.1
79.7
22 Durable goods
23 Metal materials
91.4
97.8
63.5
68.0
88.4
95.4
59.8
46.2
81.5
72.2
82.2
69.8
81.3
67.6
80.8
66.7
80.0
64.5
80.0
65.2
79.9
67.8
79.9
69.8
79.3
70.1
78.5
69.6
24 Nondurable goods . . . .
25 Textile, paper, and
chemical
26
Paper
27
Chemical
94.4
67.4
91.7
70.7
83.9
81.5
80.5
80.2
79.4
79.2
79.6
79.6
79.0
78.6
95.1
99.4
95.5
65.4
72.4
64.2
92.3
97.9
91.3
68.6
86.3
64.0
83.3
99.8
79.0
80.5
99.7
76.1
79.7
98.7
75.7
79.1
97.2
75.7
78.0
98.5
73.9
78.0
98.2
74.3
78.3
96.3
75.0
78.4
95.5
75.5
77.3
93.0
74.6
76.8
n.a.
n.a.
28 Energy materials
94.5
84.4
88.9
78.5
84.3
84.3
81.0
82.1
83.2
84.2
86.1
85.7
84.6
85.1
1. Monthly high 1973; monthly low 1975.
2. Monthly highs 1978 through 1980; monthly lows 1982.
NOTE. These data also appear in the Board's G.3 (402) release. For address, see
inside front cover.
Selected Measures
2.13
INDUSTRIAL PRODUCTION
A47
Indexes and Gross Value A
Monthly data are seasonally adjusted
Grouping
1977
proportion
1984
avg.
1984
1983
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Index (1977 = 100)
MAJOR MARKET
100.00 121.8
115.5
118.4
119.3
120.1
120.7
121.3
122.3
123.2
123.5
123.3
122.7
123.4
123.3
57.72
44.77
25.52
19.25
127.1
127.8
118.2
140.5
120.0
120.8
114.4
129.2
122.8
123.4
116.2
132.8
123.7
124.2
116.9
133.9
124.5
125.0
117.3
135.3
125.4
126.1
118.3
136.4
126.2
126.8
117.7
138.8
127.5
128.2
118.5
141.0
128.6
129.2
119.1
142.5
129.0
129.7
118.4
144.5
128.8
129.8
118.3
145.0
129.0
129.9
118.5
145.0
129.9
130.7
119.6
145.5
129.8
130.6
119.7
144.9
12.94
42.28
124.9
114.6
117.6
109.4
120.9
112.4
121.9
113.3
122.8
114.1
123.0
114.4
124.2
114.7
125.4
115.2
127.0
115.8
126.9
116.1
125.6
115.9
126.2
114.2
127.2
114.6
127.3
114.6
6.89
2.98
1.79
1.16
.63
1.19
3.91
1.24
1.19
.96
1.71
112.6
109.8
103.0
93.2
121.2
120.1
114.8
136.2
137.5
117.6
97.8
109.7
107.2
101.0
95.1
111.9
116.5
111.6
132.7
134.8
111.9
96.3
113.0
110.7
105.7
97.9
120.1
118.1
114.9
136.3
137.7
115.5
99.1
113.0
111.2
106.2
98.3
120.9
118.6
114.4
132.9
134.1
116.8
99.8
112.8
111.6
106.5
99.4
119.6
119.3
113.7
131.9
133.4
117.8
98.2
113.0
110.4
103.4
95.0
119.0
121.0
115.0
135.9
136.8
118.5
98.1
111.8
108.9
102.2
93.4
118.5
118.9
114.1
133.2
134.0
118.6
97.8
111.7
110.4
102.7
93.7
119.3
122.1
112.7
131.0
131.8
118.0
96.6
113.8
110.4
102.8
92.8
121.5
121.9
116.4
140.9
143.0
119.3
97.2
113.3
111.6
106.0
92.7
130.8
120.0
114.6
138.7
140.6
117.5
95.7
111.5
107.4
98.7
85.1
124.1
120.6
114.7
138.0
140.1
118.8
95.6
111.4
104.2
95.0
84.0
115.4
118.1
116.9
140.5
142.2
118.1
99.3
113.3
110.2
103.1
89.7
127.8
121.1
115.8
137.4
138.4
118.1
99.0
113.1
111.6
104.7
95.6
121.5
122.1
114.3
137.2
138.2
114.1
97.9
19 Nondurable consumer goods
20 Consumer staples
21
Consumer foods and tobacco
22
Nonfood staples
23
Consumer chemical products . . . .
24
Consumer paper products
25
Consumer energy
26
Consumer fuel
Residential utilities
27
18.63
15.29
7.80
7.49
2.75
1.88
2.86
1.44
1.42
120.2
125.0
126.2
123.9
137.4
138.4
101.4
89.3
113.7
116.1
120.0
122.1
117.8
129.6
130.8
98.1
82.7
113.8
117.3
121.1
122.7
119.4
131.0
130.1
101.3
86.0
116.9
118.3
122.2
123.2
121.3
134.2
131.7
102.1
91.5
113.0
118.9
122.7
124.0
121.4
131.1
133.9
104.0
92.5
115.7
120.3
124.3
126.0
122.7
134.7
136.5
102.2
91.2
113.4
119.9
124.4
125.5
123.3
133.7
139.0
103.0
91.1
115.1
120.9
125.7
126.8
124.8
138.1
140.5
101.6
89.5
113.9
120.9
125.9
126.9
125.0
139.0
143.0
99.7
87.4
112.2
120.2
125.4
126.6
124.3
138.3
141.2
99.8
88.5
111.2
120.7
126.3
127.7
125.0
140.4
140.7
100.0
88.1
112.1
121.0
126.7
128.2
125.4
141.3
140.0
100.5
88.8
112.4
121.8
127.4
127.6
127.5
143.3
141.5
103.0
89.9
116.3
122.1
127.7
129.1
126.5
142.7
141.8
100.7
87.7
113.9
Equipment
28 Business and defense equipment
29 Business equipment
30
Construction, mining, and farm . . . .
31
Manufacturing
32
Power
33
Commercial
34
Transit
35 Defense and space equipment
18.01 139.6
14.34 134.9
2.08 66.6
3.27 109.4
1.27 79.2
5.22 209.2
2.49 98.6
3.67 157.9
127.5
123.0
58.5
99.0
71.6
190.1
94.0
145.5
131.5
127.1
60.6
101.9
73.0
194.9
101.7
148.8
133.1
128.5
63.5
104.3
74.5
196.3
100.1
151.3
134.7
130.4
64.6
106.7
74.9
199.6
99.9
151.9
136.1
131.2
66.7
107.7
76.3
202.5
94.5
155.6
137.9
133.3
66.3
108.5
76.7
208.7
93.2
156.0
139.9
135.5
66.6
109.7
79.8
212.1
95.3
157.2
141.4
137.0
68.9
110.6
80.3
213.5
97.6
158.5
143.5
139.1
68.1
113.4
80.3
216.5
100.6
160.7
144.1
139.2
67.9
113.3
82.4
216.9
99.3
163.4
144.1
139.1
69.5
112.7
83.7
216.4
98.5
163.5
144.6
139.8
68.2
112.4
83.8
217.1
102.9
163.3
143.9
138.4
68.5
111.5
84.5
214.5
100.9
165.3
1
Total index
2 Products
Final products
4
Consumer goods
5
Equipment
6 Intermediate products
7 Materials
Consumer goods
8 Durable consumer goods
9 Automotive products
10
Autos and trucks
11
Autos, consumer
12
Trucks, consumer
13
Auto parts and allied goods
14 Home goods
15
Appliances, A/C and TV
16
Appliances and TV
17
Carpeting and furniture
18
Miscellaneous home goods
Intermediate products
36 Construction supplies
37 Business supplies
38 General business supplies
39 Commercial energy products
Materials
40 Durable goods materials
41 Durable consumer parts
42 Equipment parts
43 Durable materials n.e.c
44
Basic metal materials
45 Nondurable goods materials
46 Textile, paper, and chemical
materials
47
Textile materials
48
Pulp and paper materials
49
Chemical materials
50 Miscellaneous nondurable materials ..
51
52
53
Energy materials
Primary energy
Converted fuel materials
5.95
6.99
5.67
1.31
114.0
134.2
137.9
118.0
106.7
126.9
130.0
113.1
111.2
129.3
132.3
116.2
112.4
130.0
133.5
114.7
113.9
130.5
134.1
114.8
113.7
130.9
134.0
117.4
113.1
133.7
137.7
116.2
114.3
134.9
138.4
119.5
114.3
137.8
142.0
119.5
115.3
136.9
141.3
117.4
114.7
134.9
138.7
118.2
114.6
136.1
140.1
118.8
115.7
137.1
140.9
120.4
114.7
138.0
141.4
122.9
20.50
4.92
5.94
9.64
4.64
122.3
98.0
164.5
108.6
86.4
114.2
93.7
149.2
103.1
84.5
118.1
97.3
152.6
107.3
86.4
120.1
97.0
157.5
108.7
88.1
120.6
97.4
158.6
109.0
87.5
121.6
97.7
162.9
108.3
88.4
121.7
96.5
162.9
109.1
87.7
122.4
97.2
164.8
109.1
87.2
123.5
97.5
168.6
108.8
86.5
124.4
99.0
170.1
109.2
85.6
124.0
98.8
169.9
108.5
85.0
123.7
98.9
168.6
108.7
84.8
123.9
99.1
169.1
108.7
85.2
123.4
99.8
168.8
107.4
84.0
10.09
111.2
109.1
110.3
111.2
111.8
111.3
111.4
111.2
111.6
111.6
111.4
111.2
110.7
110.7
7.53
1.52
1.55
4.46
2.57
111.6
101.5
126.5
109.9
109.8
109.5
104.4
124.8
105.9
108.0
111.0
105.5
125.5
107.9
108.4
112.0
105.9
125.5
109.5
108.8
112.1
105.7
123.9
110.3
110.8
111.7
103.4
128.0
108.9
110.0
111.8
104.4
126.6
109.2
110.0
112.0
102.1
127.6
110.0
108.7
111.8
103.2
128.5
109.1
110.8
112.5
104.5
127.0
110.1
109.0
112.3
99.2
127.7
111.5
108.4
111.5
98.5
126.2
110.8
109.9
110.5
93.7
125.1
111.1
111.1
110.1
91.2
127.2
110.6
112.1
11.69
7.57
4.12
104.0
107.5
97.6
101.3
103.0
98.2
104.2
107.3
98.4
103.3
106.9
96.6
104.5
107.9
98.2
104.6
107.9
98.4
105.3
108.9
98.9
106.0
110.1
98.5
106.0
110.7
97.3
105.5
109.3
98.5
105.5
110.0
97.2
99.9
101.4
97.1
101.5
104.1
96.8
102.4
106.0
96.0
A48
2.13
Domestic Nonfinancial Statistics • August 1985
INDUSTRIAL PRODUCTION Indexes and Gross Value—Continued
1977
Grouping
SIC
code
portion
1984
avg.
1984
1983
Dec.
Feb.
Jan.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Index (1977 = 100)
MAJOR INDUSTRY
3
15.79
9.83
5.%
84.21
35.11
49.10
110.9
110.9
110.9
123.9
122.5
124.8
108.0
105.4
112.2
116.8
117.5
116.3
111.6
110.9
112.7
119.6
119.5
119.6
109.4
109.4
109.4
121.0
121.0
121.0
110.4
109.6
111.6
122.0
121.6
122.2
110.4
109.8
111.4
122.8
121.9
123.3
111.7
111.7
111.6
123.2
122.3
123.8
112.7
113.5
111.4
124.1
123.2
124.7
112.9
114.8
109.8
125.4
123.9
126.4
111.9
113.0
110.0
125.9
123.2
127.7
112.1
113.6
109.7
125.6
123.1
127.2
108.0
107.2
109.4
125.5
123.3
127.0
110.1
108.8
112.1
126.0
123.8
127.5
109.9
108.9
111.6
125.8
123.4
127.4
10
11.12
13
14
.50
1.60
7.07
.66
77.0
127.6
109.1
116.1
68.2
113.0
105.8
109.7
74.2
124.1
110.3
112.7
79.6
128.1
106.9
113.5
83.7
130.7
106.0
115.9
81.3
128.1
106.8
119.5
80.0
130.8
109.2
117.3
79.0
137.9
110.2
117.0
79.6
141.7
110.9
118.3
72.2
136.4
110.2
118.4
73.6
144.2
109.2
117.6
75.3
102.0
110.1
114.2
75.5
113.1
109.8
115.3
69.3
116.2
109.8
113.2
Utilities
1
8
9
10
Mining
Metal
Coal
Oil and gas extraction
Stone and earth minerals
11
12
13
14
15
Nondurable manufactures
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
20
21
22
23
26
7.96
.62
2.29
2.79
3.15
127.1
100.7
103.7
102.8
127.3
121.7
101.7
105.5
101.7
125.3
123.4
100.8
106.8
104.1
125.9
124.4
100.4
107.6
104.7
126.1
125.5
98.0
108.7
104.6
126.0
126.8
99.7
106.9
106.1
127.3
126.7
99.2
107.0
104.2
126.5
127.4
102.0
105.0
102.9
127.2
127.8
100.9
105.7
102.3
128.2
127.7
97.3
103.5
101.3
128.2
128.2
99.6
100.9
100.1
128.9
129.1
103.1
100.3
100.5
127.6
128.7
102.7
97.1
101.1
127.7
129.0
107.4
94.7
102.5
128.8
16
17
18
19
20
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products
Leather and products
27
28
29
30
31
4.54
8.05
2.40
2.80
.53
147.9
121.7
87.4
143.2
76.7
137.8
115.2
80.0
138.1
82.5
139.7
118.2
86.5
137.6
79.3
141.6
120.1
91.3
138.7
82.4
143.5
120.3
89.8
140.7
81.7
144.1
119.9
88.7
140.1
82.0
148.2
119.5
88.3
143.5
78.8
149.4
122.1
88.4
144.9
77.3
152.3
122.9
87.0
146.0
77.0
151.5
122.0
87.5
144.5
74.2
148.8
124.2
85.7
144.1
73.4
149.5
123.5
85.4
146.0
70.9
153.5
124.3
86.2
146.6
71.5
151.2
123.4
84.7
146.6
71.4
24
25
32
2.30
1.27
2.72
109.1
136.7
112.3
105.2
125.5
104.3
106.7
128.1
108.5
108.1
132.2
111.0
109.5
132.5
111.3
UO.O
132.9
112.0
108.3
138.3
113.2
109.8
138.6
112.5
107.9
139.4
113.8
109.4
140.0
113.7
110.4
140.9
112.6
110.2
139.9
113.3
109.5
139.8
113.6
109.4
138.0
111.8
33
331.2
34
35
36
5.33
3.49
6.46
9.54
7.15
82.4
73.5
102.8
142.0
172.4
79.3
71.0
96.6
128.9
159.1
84.3
77.9
97.2
131.6
163.0
85.1
78.1
99.1
133.4
164.6
83.6
75.6
102.1
136.5
165.9
84.2
76.0
101.5
138.9
169.2
82.8
74.3
101.9
141.9
169.2
80.4
71.0
103.3
143.7
171.4
80.6
69.0
103.7
146.1
175.3
84.0
74.6
104.1
147.8
176.2
82.9
73.6
104.8
146.5
176.8
81.3
71.0
104.8
146.6
178.4
80.9
71.1
105.4
145.8
178.9
78.4
68.9
105.9
144.6
180.2
37
371
9.13
5.25
113.6
105.6
107.9
101.1
112.1
106.5
112.3
106.0
112.3
106.5
112.0
103.6
111.2
103.4
112.4
104.3
114.2
105.4
116.2
108.3
114.3
104.6
113.4
103.1
116.0
107.5
117.8
109.5
372-6.9
38
39
3.87
2.66
1.46
124.4
136.9
98.0
117.0
127.0
96.8
119.6
130.3
98.7
120.8
132.6
99.6
120.2
135.3
96.8
123.4
135.8
98.3
121.6
135.1
98.8
123.4
138.0
96.4
126.0
139.4
99.7
126.9
139.8
97.8
127.5
140.2
95.9
127.3
138.6
98.6
127.5
138.6
98.6
129.0
138.9
97.2
4.17
116.8
117.9
117.3
113.8
116.8
117.2
117.7
118.0
116.1
116.8
116.2
116.8
118.7
117.5
Durable manufactures
21 Lumber and products
22 Furniture and fixtures
23 Clay, glass, stone products
24
25
26
27
28
Primary metals
Iron and steel
Fabricated metal products
Nonelectrical machinery
Electrical machinery
29 Transportation equipment
30 Motor vehicles and parts
31 Aerospace and miscellaneous
transportation equipment
32 Instruments
33 Miscellaneous manufactures
Utilities
Gross value (billions of 1972 dollars, annual rates)
MAJOR MARKET
35 Products, total
596.0
745.6
706.2
725.6
731.0
738.8
740.1
743.8
749.5
748.1
752.4
749.2
753.7
759.2
756.5
36 Final
37 Consumer goods.
38 Equipment
39 Intermediate
472.7
309.2
163.5
123.3
593.7
356.5
237.6
151.8
563.2
346.9
216.5
142.9
577.6
352.6
225.2
147.8
582.7
355.5
227.4
148.1
589.2
358.7
230.8
149.5
590.5
361.0
229.7
149.5
592.6
358.0
234.9
151.0
596.7
357.7
239.4
152.7
593.7
355.0
239.1
154.3
598.0
354.1
244.3
154.3
596.8
352.5
244.8
152.3
600.4
355.5
245.4
153.2
605.2
359.0
246.7
154.0
601.8
360.0
242.3
154.6
A A major revision of the industrial production index and the capacity
utilization rates was released in July 1985. See "A Revision of the Index of
Industrial Production" and accompanying tables that contain revised indexes
(1977=100) through December 1984 in the FEDERAL RESERVE BULLETIN, vol. 71
(July 1985), pp. 487-501. The revised indexes for January through June 1985 will
be shown in the September BULLETIN.
NOTE. These data also appear in the Board's G. 12.3 (414) release. For address,
see inside front cover.
Selected Measures
2.14
A49
HOUSING A N D CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1984
1982
Item
1983
1985
1984
Aug.
July
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.'
Mar/
Apr.
Private residential real estate activity (thousands of units)
NEW UNITS
1 Permits authorized
2 1-family
3 2-or-more-family
1,000
546
454
1,605
902
703
1,682
922
759
1,591
864
727
1,542
853
689
1,517
866
651
1,477
827
650
1,616
846
770
1,599
843
756
1,635
903
732
1,624
927
697
1,741
993
748
1,704
948
756
4 Started
5 1-family
6 2-or-more-family
1,062
663
400
1,703
1,067
635
1,749
1,084
665
1,730
996
734
1,590
962
628
1,669
1,009
660
1,564
979
585
1,600
1,043
557
1,630
1,112
518
1,849
1,060
789
1,647
1,135
512
1,889
1,168
721
1,927
1,159
768
720
400
320
1,003
524
479
1,051
556
494
1,100
582
518
1,091
574
517
1,088
568
520
1,081
571
510
1,077
574
503
1,073
579
495
1,071'
572
499'
1,066
580
485
1,063
578
484
1,093
587
505
1,005
631
374
1,390
924
466
1,652
1,025
627
1,699
1,062
637
1,681
1,035
646
1,657
1,040
617
1,614
972
642
1,587
1,001
586
1,635
985
650
1,719'
1,107'
612'
1,794
1,082
712
1,686
1,042
644
1,635
1,074
561
13 Mobile homes shipped
240
296
295
301
302
282
302
291
282
273
276
283
287
Merchant builder activity in 1-family units
14 Number sold
15 Number for sale, end of period1
413
255
622
304
639
358
615
340
557
343
670
343
652
346
596
349
604
356
634'
356
659
360
695
360
612
362
69.3
75.5
80.0
80.7
82.0
81.3
80.1
82.5
78.3
82.5'
82.8
84.3
86.2
83.8
89.9
97.5
97.1
96.9
101.3
95.7
101.4
96.3
98.3'
97.2
101.2
105.8
1,991
2,719
2,868
2,790
2,770
2,730
2,740
2,830
2,870
3,000
2,880
3,030
3,040
67.7
80.4
69.8
82.5
72.3
85.9
74.2
87.9
73.5
87.6
71.9
85.4
71.9
86.2
71.9
85.1
72.1
85.9
73.8
87.7
73.5
87.2
74.2
88.6
74.5
89.7
7 Under construction, end of period'
8 1-family
9 2-or-more-family
10 Completed
11 1-family
12 2-or-more-family
2
Price (thousands of dollars)
Median
Units sold
Average
17 Units sold
16
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
230,068 262,167 309,740 314,223 318,031 318,685 312,849 308,111 307,579 316,356
322,667 322,358 325,744
V Private
73 Residential
24 Nonresidential, total
Buildings
75
Industrial
76
Commercial
27
Other
28
Public utilities and other
179,090 211,369 253,924 258,245 261,165 260,871 256,121 251,607 251,283 258,579
74,808 111,727 133,519 137,818 138,926 137,106 131,143 125,906 122,727 128,449
104,282 99,642 120,405 120,427 122,239 123,765 124,978 125,701 128,556 130,130
264,501 263,926 267,052
133,158 134,700 133,950
131,343 129,226 133,102
79 Public
30
31
3? Conservation and development
33 Other
17,346
37,281
10,507
39,148
12,863
35,787
11,660
39,332
14,426
49,273
12,725
43,981
13,784
48,436
12,744
45,463
14,613
49,496
12,059
46,071
14,917
50,861
12,079
45,908
14,867
53,509
12,111
44,491
15,287
54,579
11,975
43,860
15,353
56,661
12,396
44,146
15,075
58,456
11,847
44,752
15,615
58,987
12,121
44,620
14,647
59,344
11,193
44,042
15,423
60,657
12,546
44,476
50,977
2,205
13,428
5,029
30,315
50,798
2,544
14,225
4,822
29,207
55,818
2,837
16,881
4,586
31,514
55,979
2,345
17,136
4,520
31,978
56,866
2,851
17,322
4,520
32,173
57,814
3,508
17,209
4,890
32,207
56,729
2,890
16,794
4,591
32,454
56,504
3,082
17,458
5,073
30,891
56,296
2,974
17,588
4,555
31,179
57,777
3,254
18,133
4,592
31,798
58,166
3,324
18,283
4,647
31,912
58,432
3,206
18,763
4,684
31,779
58,693
3,198
18,880
4,305
32,310
1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly
comparable with data in prior periods because of changes by the Bureau of the
Census in its estimating techniques. For a description of these changes see
Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
NOTE. Census Bureau estimates for all series except (a) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing
Institute and seasonally adjusted by the Census Bureau, and (b) sales and prices of
existing units, which are published by the National Association of Realtors. All
back and current figures are available from originating agency. Permit authorizations are those reported to the Census Bureau from 16,000 jurisdictions beginning
with 1978.
A50
2.15
Domestic Nonfinancial Statistics • August 1985
CONSUMER A N D PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Change from 3 months earlier
(at annual rate)
Item
1984
1984
1985
May
May
June
Sept.
Change from 1 month earlier
1985
Dec.
Mar.
Index
level
May
1985
(1967
= 100)'
1985
Feb/
Jan/
Mar.
Apr.
May
CONSUMER PRICES2
1
All items
? Food
3 Energy items
4 All items less food and energy
Commodities
5
Services
6
4.2
3.7
3.2
4.5
3.0
4.1
.2
.3
.5
.4
.2
321.3
3.1
1.1
5.1
4.9
5.3
2.5
1.3
4.5
2.8
5.5
-.5
.3
4.8
3.9
5.2
3.9
.1
5.3
3.8
6.2
3.7
-.7
3.5
.9
5.0
2.6
-.8
5.5
6.6
5.0
.2
-.8
.4
.5
.4
.5
-1.4
.6
.8
.4
.0
1.9
.4
.3
.4
-.2
1.8
.3
.0
.4
-.1
.3
.3
-.2
.7
308.9
431.7
312.8
259.6
372.9
2.4
3.5
-.8
2.7
2.6
1.1
-.7
-1.9
2.4
2.0
-.4
-7.5
5.0
.8
2.2
.0
4.5
-19.7
2.5
2.3
1.1
3.3
5.6
-.2
-1.1
1.0
-2.4
-21.0
6.6
6.5
.0
-.5
-2.6
.6
.8
.0
.0
-2.3
.4
.3
.2
-.2
-.9
.6
.4
.3
-1.0
5.8
-.2
.0
.2
-1.1
3.4
.2
.0
294.2
269.7
747.9
251.5
299.8
3.4
3.5
.3
.7
2.7
2.0
-1.1
.9
1.2
1.5
-2.5
-1.0
-.1
.0
-.5
-.2
-.1
-.1
.3
.0
.3
.2
326.4
305.9
3.9
-.6
12.2
-11.0
-3.0
-9.1
-19.2
4.0
14.3
-1.7
.4
-15.3
10.6
-7.6
-10.7
-24.1
-12.7
-13.4
-2.3
-2.0
-1.3
-1.8
-.3
-4.4
-2.8
-1.0
2.3
-3.0
.1
2.1
-2.4
2.0
-1.5
237.0
763.1
252.4
PRODUCER PRICES
7
8
9
10
11
Finished goods
Consumer foods
Consumer energy
Other consumer goods
Capital equipment
12
13
Intermediate materials3
Excluding energy
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.
Selected Measures
2.16
A51
GROSS NATIONAL PRODUCT A N D INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1985
1984
Account
1982
1983
1984
Ql
Q2
Q3
Q4
Ql r
GROSS NATIONAL PRODUCT
1
3,069.3
3,304.8
3,662.8
3,553.3
3,644.7
3,694.6
3,758.7
3,810.6
By source
2 Personal consumption expenditures
3
4
5
1,984.9
245.1
757.5
982.2
2,155.9
279.8
801.7
1,074.4
2,341.8
318.8
856.9
1,166.1
2,276.5
310.9
841.3
1,124.4
2,332.7
320.7
858.3
1,153.7
2,361.4
317.2
861.4
1,182.8
2,396.5
326.3
866.5
1,203.8
2,446.5
334.8
877.3
1,234.4
414.9
441.0
349.6
142.1
207.5
91.4
86.6
471.6
485.1
352.9
129.7
223.2
132.2
127.6
637.8
579.6
425.7
150.4
275.3
153.9
148.8
623.8
550.0
398.8
142.2
256.7
151.2
146.4
627.0
576.4
420.8
150.0
270.7
155.6
150.5
662.8
591.0
435.7
151.4
284.2
155.3
150.1
637.8
601.1
447.7
157.9
289.7
153.5
148.3
646.8
606.1
450.9
162.9
288.0
155.2
150.0
Change in business inventories
Nonfarm
-26.1
-24.0
-13.5
-3.1
58.2
49.6
73.8
60.6
50.6
47.0
71.8
63.7
36.6
27.2
40.7
34.1
Net exports of goods and services
19.0
348.4
329.4
-8.3
336.2
344.4
-64.2
364.3
428.5
-51.5
358.9
410.4
-58.7
362.4
421.1
-90.6
368.6
459.3
-56.0
367.2
423.2
-74.5
360.7
435.2
650.5
258.9
391.5
685.5
269.7
415.8
747.4
295.4
452.0
704.4
267.6
436.8
743.7
296.4
447.4
761.0
302.0
458.9
780.5
315.7
464.8
791.9
319.9
472.0
3,095.4
1,276.7
499.9
776.9
1,510.8
281.7
3,318.3
1,355.7
555.3
800.4
1,639.3
309.8
3,604.6
1,542.9
655.6
887.3
1,763.3
356.5
3,479.5
1,498.0
632.3
865.7
1,713.7
341.6
3,594.1
1,544.8
647.9
896.9
1,742.6
357.2
3,622.8
1,549.1
654.7
894.4
1,783.3
362.1
3,722.1
1,579.8
687.7
892.1
1,813.7
365.2
3,770.0
1,583.8
677.1
906.7
1,857.2
369.6
-26.1
-18.0
-8.1
-13.5
-2.1
-11.3
58.2
30.4
27.8
73.8
34.9
38.9
50.6
18.2
32.4
71.8
41.7
30.1
36.6
26.7
9.9
40.7
29.0
11.7
1,480.0
1,534.7
1,639.3
1,610.9
1,638.8
1,645.2
1,662.4
1,663.5
31
2,446.8
2,646.7
2,959.9
2,873.5
2,944.8
2,984.9
3,036.3
3,076.5
V Compensation of employees
1,864.2
1,568.7
306.6
1,262.2
295.5
140.0
155.5
1,984.9
1,658.8
328.2
1,331.1
326.2
153.1
173.1
2,173.2
1,804.1
349.8
1,454.2
369.0
173.5
195.5
2,113.4
1,755.9
342.9
1,413.0
357.4
169.4
188.1
2,159.2
1,793.3
347.5
1,445.8
365.9
172.4
193.5
2,191.9
1,819.1
352.0
1,467.1
372.8
174.7
198.1
2,228.1
1,848.2
357.2
1,490.9
380.0
177.5
202.5
2,272.7
1,882.8
365.5
1,517.3
389.8
183.6
206.3
111.1
89.2
21.8
121.7
107.9
13.8
154.4
126.2
28.2
154.9
122.5
32.5
149.8
126.3
23.4
153.7
126.4
27.3
159.1
129.7
29.4
159.8
134.0
25.7
6 Gross private domestic investment
7
8
9
10
11
12
N
14
IS
16
17
18
19
20
Producers' durable equipment
Residential structures
Nonfarm
Imports
Government purchases of goods and services
State and local
By major type of product
71
7?
73
74
?5
26
Nondurable
Structures
77 Change in business inventories
Durable goods
Nondurable goods
78
29
30 MEMO: Total GNP in 1972 dollars
NATIONAL INCOME
33
34
35
36
37
38
Government and government enterprises
Other
Supplement to wages and salaries
Employer contributions for social insurance
Other labor income
39
40
41
Business and professional1
Farm1
51.5
58.3
62.5
61.0
62.0
63.0
64.1
64.8
43 Corporate profits1 3
44 Profits before tax
45 Inventory valuation adjustment
46 Capital consumption adjustment
159.1
165.5
-9.5
3.1
225.2
203.2
-11.2
33.2
285.7
235.7
-5.7
55.7
277.4
243.3
-13.5
47.6
291.1
246.0
-7.3
52.3
282.8
224.8
-.2
58.3
291.6
228.7
-1.6
64.5
292.3
222.3
.9
69.1
47
260.9
256.6
284.1
266.8
282.8
293.5
293.4
287.0
42 Rental income of persons2
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).
A52
2.17
Domestic Nonfinancial Statistics • August 1985
PERSONAL INCOME A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1985
1984
Account
1982
1984
1983
Q1
Q2
Q3
Q4
Q' r
PERSONAL INCOME AND SAVING
2,584.6
2,744.2
3,012.1
2,920.5
2,984.6
3,047.3
3,096.2
3,143.8
1,568.7
509.3
382.9
378.6
374.3
306.6
1,659.2
519.3
395.2
398.6
413.1
328.2
1,804.0
569.3
433.9
432.0
452.9
349.8
1,755.7
555.9
424.6
419.2
437.9
342.8
1,793.1
567.0
432.2
429.5
449.3
347.3
1,819.5
573.3
436.4
436.4
457.3
352.4
1,847.6
580.9
442.4
443.1
466.9
356.7
1,882.7
590.9
447.9
449.0
477.4
365.4
155.5
15 Transfer payments
16 Old-age survivors, disability, and health insurance benefits...
89.2
21.8
51.5
66.5
366.6
376.1
204.5
173.1
121.7
107.9
13.8
58.3
70.3
376.3
405.0
221.6
195.5
154.4
126.2
28.2
62.5
77.7
433.7
416.7
237.3
188.1
154.9
122.5
32.5
61.0
75.0
403.9
411.3
232.1
193.5
149.8
126.3
23.4
62.0
77.2
425.6
415.2
235.2
198.1
153.7
126.4
27.3
63.0
78.5
449.3
418.6
238.2
202.5
159.1
129.7
29.4
64.1
80.2
456.1
421.8
243.5
206.3
159.8
134.0
25.7
64.8
81.4
456.0
439.2
249.6
17
111.4
119.6
132.5
129.6
131.8
133.4
135.2
146.4
3,143.8
2 Wage and salary disbursements
3 Commodity-producing industries
4
Manufacturing
5 Distributive industries
6 Service industries
7 Government and government enterprises
8
9
10
11
12
13
Other labor income
Proprietors' income1
Business and professional1
Farm1
Rental income of persons2
Dividends
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
LESS: Personal tax and nontax payments
19
21
LESS: Personal outlays
22 EQUALS: Personal saving
111.1
2,584.6
2,744.2
3,012.1
2,920.5
2,984.6
3,047.3
3,096.2
404.1
404.2
435.3
418.3
430.3
440.9
451.7
489.0
2,644.5
2,654.8
2,180.5
2,340.1
2,576.8
2,502.2
2,554.3
2,606.4
2,044.5
2,222.0
2,420.7
2,349.6
2,409.5
2,442.3
2,481.5
2,536.2
163.0
118.6
6,989.0
4,575.7
4,965.0
4.5
136.0
118.1
156.1
152.5
144.8
164.1
6,369.7
4,145.9
4,555.0
6.2
6,543.4
4,302.8
4,670.0
5.0
6,926.1
4,488.7
4,939.0
6.1
6,829.4
4,426.5
4,865.0
6.1
6,933.2
4,502.3
4,930.0
5.7
6,943.2
4,498.4
4,965.0
6.3
6,998.3
4,527.1
4,996.0
6.2
408.8
437.2
551.8
543.9
551.0
556.4
556.0
550.7
524.0
136.0
29.2
-9.5
571.7
118.1
76.5
-11.2
674.8
156.1
115.4
-5.7
651.3
152.5
107.0
-13.5
660.2
144.8
115.3
-7.3
689.4
164.1
118.4
-.2
698.2
163.0
120.8
-1.6
662.1
118.6
122.5
221.8
137.1
.0
231.2
145.9
.0
246.2
157.0
.0
239.9
151.8
.0
244.1
156.0
.0
248.1
158.8
.0
252.8
161.5
.0
257.4
163.7
.0
-115.3
-148.2
-134.5
-178.6
44.1
-122.9
-175.8
52.9
-107.4
-161.3
53.9
-109.2
-163.7
54.5
-133.0
-180.6
47.6
-142.2
-197.8
55.6
-111.4
32.9
.0
.0
.0
.0
.0
.0
.0
.0
408.3
437.7
544.4
546.1
542.0
543.4
546.1
542.6
414.9
-6.6
471.6
-33.9
637.8
-93.4
623.8
-77.7
627.0
-85.0
662.8
-119.4
637.8
-91.6
646.8
-104.2
-.5
.5
-7.4
2.2
-9.0
-13.0
-9.9
-8.1
MEMO
Per capita (1972 dollars)
23 Gross national product
24 Personal consumption expenditures
25 Disposable personal income
26 Saving rate (percent)
GROSS SAVING
28
29
30
31
Gross private saving
Personal saving
Undistributed corporate profits1
Corporate inventory valuation adjustment
Capital consumption allowances
34 Wage accruals less disbursements
35 Government surplus, or deficit ( - ) , national income and
product accounts
37
State and local
38 Capital grants received by the United States, net
40 Gross private domestic
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
SOURCE. Survey of Current Business (Department of Commerce).
.9
-165.1
53.7
Summary Statistics
3.10
U.S. INTERNATIONAL TRANSACTIONS
A53
Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted. 1
1984'
Item credits or debits
1982'
1985
1984'
1983'
QL
Q2
Q3
Q4
QIP
-8,051
-40,790
-101,532
-19,064
-18,395
-24,493
-24,654
-32,500
-35,724
-25,477
-22,759
-29,997
-29,079
-36,444
211,198
-247,642
-318
29,493
7,353
-62,012
200,745
-262,757
-163
25,401
4,837
-108,281
220,316
-328,597
-1,765
19,109
819
-25,569
53,753
-79,322
-346
8,234
829
-25,649
54,677
-80,326
-593
3,618
363
-32,507
55,530
-88,037
-250
3,256
-123
-24,557
56,355
-80,912
-575
4,003
-253
-29,437
55,811
-85,248
-89
2,626
78
-2,633
-5,501
-2,566
-6,287
-2,891
-8,522
-732
-1,480
-710
-1,522
-669
-2,207
-782
-3,313
-857
-2,318
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )
-6,131
-5,006
-5,516
-2,059
-1,353
-1,369
-734
-795
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
-4,965
0
-1,371
-2,552
-1,041
-1,196
0
-66
-4,434
3,304
-3,130
0
-979
-995
-1,156
-657
0
-226
-200
-231
-565
0
-288
-321
44
-799
0
-271
-331
-197
-1,109
0
-194
-143
-772
-233
0
-264
281
-250
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
-108,121
-111,070
6,626
-8,102
4,425
-48,842
-29,928
-6,513
-7,007
-5,394
-11,800
-8,504
6,266
-5,059
-4,503
-2,260
-1,110
1,289
673
-3,112
-17,070
-20,186
1,908
-756
1,964
20,532
17,725
2,099
-1,313
2,021
-13,003
-4,933
970
-3,663
-5,377
-2,165
-285
n.a.
-2,461
581
22 Change in foreign official assets in the United States
(increase, +)
23 U.S. Treasury securities
24 Other U.S. government obligations
2.5 Other U.S. government liabilities4
26 Other U.S. liabilities reported
by U.S. banks
27 Other foreign official assets5
3,672
5,779
-694
684
-1,747
-350
5,795
6,972
-476
552
545
-1,798
3,424
4,690
167
453
663
-2,549
-2,786
-275
3
233
-2,147
-600
-224
-274
146
555
328
-979
-686
-575
85
-139
430
-487
7,119
5,814
-67
-197
2,052
-483
-11,402
-7,227
-307
-532
-3,219
-117
28 Change in foreign3 private assets in the United States
(increase, +)
U.S. bank-reported liabilities
U.S. nonbank-reported liabilities
Foreign private purchases of U.S. Treasury securities, net
Foreign purchases of other U.S. securities, net
Foreign direct investments in the United States, net3
90,775
65,922
-2,383
7,052
6,392
13,792
78,527
49,341
-118
8,721
8,636
11,947
93,895
31,674
4,284
22,440
12,983
22,514
22,063
11,348
4,520
1,396
1,494
3,305
41,816
20,970
4,566
6,485
506
9,289
3,825
-5,125
-2,939
5,058
1,603
5,228
26,191
4,481
-1,863
9,501
9,380
4,692
27,923
13,011
n.a.
2,677
9,522
2,713
0
32,821
0
11,513
0
24,660
0
4,763
-422
0
1,889
-606
0
10,997
-3,170
0
7,013
-4,200
0
16,669
-343
32,821
11,513
24,660
5,185
2,495
14,167
11,213
17,012
-4,965
-1,196
-3,131
-657
-566
-799
-1,110
-233
2,988
5,243
2,971
-3,019
-779
-547
7,316
-10,870
7,291
-8,283
-4,143
-2,405
-2,097
-453
812
-2,013
585
194
190
41
44
45
61
15
1 Balance on current account
i
3
4
5
6
7
8
9
10
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)
29
30
31
32
33
34 Allocation of SDRs
35 Discrepancy
36
37 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 6, 10,12-16, 18-20, 22-34,
and 38-41.
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.
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).
A54
3.11
International Statistics • August 1985
U.S. FOREIGN TRADE
Millions of dollars; monthly data are seasonally adjusted.
1984
Item
1981
1982
Nov.
Oct.
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments
233,677
1985
1983
212,193
200,486
18,411
Dec.
18,395
Jan.
19,142
Feb.
19,401
Mar.
17,853
Apr.
18,446
17,779
2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded
warehouses
261,305
243,952
258,048
26,783
27,331
25,933
28,297
27,985
28,129
28,295
3 Trade balance
-27,628
-31,759
-57,562
-8,372
-8,936
-6,791
-8,896
-10,131
-9,683
-10,516
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
not covered in Census statistics, and (2) the exclusion of military sales (which are
combined with other military transactions and reported separately in the "service
account" in table 3.10, line 6). On the import side, additions are made for gold,
ship purchases, imports of electricity from Canada, and other transactions;
military payments are excluded and shown separately as indicated above.
SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade"
(Department of Commerce, Bureau of the Census).
U.S. RESERVE ASSETS
Millions of dollars, end of period
1984
Type
1981
1982
1985
1983
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
1 Total
30,075
33,958
33,747
34,727
34,934
34,380
34,272
35,493
35,493
35,782
2 Gold stock, including
Exchange Stabilization Fund1
11,151
11,148
11,121
11,096
11,096
11,095
11,093
11,093
11,091
11,091
4,095
5,250
5,025
5,693
5,641
5,693
5,781
5,973
5,971
6,163
3 Special drawing rights2,3
4 Reserve position
in International Monetary Fund2
5,055
7,348
11,312
11,675
11,541
11,322
11,097
11,386
11,382
11,370
5 Foreign currencies4
9,774
10,212
6,289
6,263
6,656
6,270
6,301
7,041
7,049
7,158
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
3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus transactions in SDRs.
4. Valued at current market exchange rates.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1984
Assets
1981
1982
Nov.
1 Deposits
Assets held in custody 1
2 U.S. Treasury securities
3 Earmarked gold2
Dec.
Jan.
Feb.
Mar.
Apr.
May
505
328
190
392
253
244
331
253
348
204
104,680
14,804
112,544
14,716
117,670
14,414
117,433
14,265
118,267
14,265
117,330
14,261
115,179
14,260
113,532
14,264
115,184
14,264
116,989
14,265
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.
1985
1983
NOTE. Excludes deposits and U.S. Treasury securities held for international
and regional organizations. Earmarked gold is gold held for foreign and international accounts and is not included in the gold stock of the United States.
Summary Statistics
3.14
FOREIGN BRANCHES OF U.S. B A N K S
A55
Balance Sheet Data1
Millions of dollars, end of period
1984
1985
-
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr .p
All foreign countries
462,847
1 Total, all currencies
2 Claims on United States
3 Parent bank
4 Other banks in United States2
5 Nonbanks2
6 Claims on foreigners
7 Other branches of parent bank
8 Banks
9 Public borrowers
10 Nonbank foreigners
1
63,743
43,267
in Ait.
378,954
87,821
150,763
28,197
112,173
11 Other assets
12 Total payable in U.S. dollars
13 Claims on United States
14 Parent bank
15 Other banks in United States2
16 Nonbanks2
17 Claims on foreigners
18 Other branches of parent bank
19 Banks
20 Public borrowers
21 Nonbank foreigners
477,090
448,499
452,914
452,205
445,041
452,88y
462,098
460,440
91,805
61,666
115,542
82,026
ii
358,493
91,168
133,752
24,131
109,442
342,689
96,004
117,668
24,517
107,785
109,292
75,736
12,357'
21,199'
319,075
90,821
102,258
23,053
102,943
112,815
77,958
13,313'
21,544'
319,431
91,313
103,050
22,907
102,161
113,435
78,151
13,664'
21,620'
318,710
94,738
100,307
22,872
100,793
115,501
79,318
13,686'
22,497'
309,193
87,416
99,806
22,441'
99,53C
119,012'
84,062'
13,737'
21,213'
314,271
89,303
104,278
22,219'
98,471'
118,010
84,892
13,092
20,026
323,676
95,002
105,163
22,492
101,019
121,388
86,472
14,213
20,703
318,991
91,329
104,303
22,844
100,515
20,150
19,414
18,859
20,132
20,668
20,060
20,347
19,60C
20,412
20,061
350,735
361,982
371,508
340,675
345,511
349,342
343,461
351,796'
354,579
351,292
62,142
42,721
90,085
61,010
113,436
80,909
276,937
69,398
122,110
62,552
259,871
73,537
106,447
18,413
61,474
247,406
78,431
93,332
17,890
60,977
106,651
74,366
12,107'
20,178'
223,376
73,472
76,915
17,337
55,652
110,442
76,763
13,121'
20,558'
224,251
74,600
77,096
17,374
55,181
111,468
77,271
13,50c
20,697'
227,303
78,300
76,851
17,160
54,992
113,250
78,392
13,493'
21,365'
219,768
72,391
75,691
16,994'
54,692'
116,708'
83,052'
13,464'
20,192'
224,738
74,367
79,122
16,754'
54,495'
115,645
83,810
12,790
19,045
228,892
79,241
78,660
17,010
53,981
118,798
85,339
13,856
19,603
222,693
75,085
76,874
16,976
53,758
11,656
12,026
10,666
10,648
10,818
10,571
10,443
10,35C
10,042
9,801
22,ill
22 Other assets
469,712
United Kingdom
23 Total, all currencies
24 Claims on United States
25 Parent bank
26 Other banks in United States2
27 Nonbanks2
28 Claims on foreigners
29 Other branches of parent bank
30 Banks
31 Public borrowers
32 Nonbank foreigners
1
33 Other assets
34 Total payable in U.S. dollars
35 Claims on United States
36 Parent bank
37 Other banks in United States 2
38 Nonbanks2
39 Claims on foreigners
40 Other branches of parent bank
41 Banks
42 Public borrowers
43 Nonbank foreigners
1
44 Other assets
157,229
161,067
158,732
147,562
149,377
144,385
146,130
149,534
150,705
148,711
11,823
7,885
1 mO
27,354
23,017
138,888
41,367
56,315
7,490
33,716
127,734
37,000
50,767
6,240
33,727
34,433
29,111
5,322
119,280
36,565
43,352
5,898
33,465
28,952
23,283
1,214
4,455
113,524
37,638
38,696
5,441
31,749
29,502
23,773
1,484
4,245
114,264
37,395
39,262
5,424
32,183
27,731
21,918
1,429
4,384
111,772
37,897
37,443
5,334
31,098
28,783
22,296
1,540
4,947
112,284
36,367
39,063
5,345
31,509
31,910
25,313
1,561
5,036
112,937
35,381
40,961
5,306
31,289
29,675
23,250
1,511
4,914
115,889
35,857
40,812
5,186
34,034
29,497
22,803
1,649
5,045
114,122
34,469
41,253
4,959
33,441
6,518
5,979
5,019
5,086
5,611
4,882
5,063
4,687
5,141
5,092
115,188
123,740
126,012
113,437
114,895
112,809
112,953
116,232
114,122
111,497
11,246
7,721
26,761
22,756
33,756
28,756
99,850
35,439
40,703
5,595
18,113
92,228
31,648
36,717
4,329
19,534
88,917
31,838
32,188
4,194
20,697
27,917
22,825
1,113
3,979
82,456
32,461
27,093
4,063
18,839
28,610
23,378
1,437
3,795
82,971
32,669
27,290
4,094
18,918
26,924
21,551
1,363
4,010
82,889
33,551
26,805
4,030
18,503
27,807
21,960
1,496
4,351
82,161
31,899
27,465
4,021
18,776
30,945
24,911
1,498
4,536
82,268
31,099
28,523
3,964
18,682
28,839
22,910
1,466
4,463
82,437
31,331
27,982
3,804
19,320
28,570
22,472
1,576
4,522
79,938
29,489
27,808
3,533
19,108
4,092
4,751
3,339
3,064
3,314
2,996
2,985
3,019
2,846
2,989
Bahamas and Caymans
45 Total, all currencies
46 Claims on United States
47 Parent bank
48 Other banks in United States 2
49 Nonbanks2
50 Claims on foreigners
51 Other branches of parent bank
52 Banks
53 Public borrowers
54 Nonbank foreigners
55 Other assets
56 Total payable in U.S. dollars
1
149,108
145,156
152,083
138,981
141,610
146,811
141,834
144,665
147,041
145,108
46,546
31,643
59,403
34,653
75,309
48,720
98,057
12,951
55,151
10,010
19,945
81,450
18,720
42,699
6,413
13,618
72,868
20,626
36,842
6,093
12,592
71,911
45,641
10,479'
15,791'
63,031
15,117
30,263
6,057
11,594
75,655
48,202
11,043'
16,410'
62,024
13,837
30,529
6,075
11,583
77,296
49,449
11,544'
16,303'
65,598
17,682
30,225
6,089
11,602
76,856
48,892
11,326'
16,638'
61,204
14,447
29,165
6,162'
11,43C
76,446'
50,043'
11,305'
15,098'
64,408
16,330
30,832
6,081'
11,165'
78,886
53,937
10,761
14,188
64,339
15,780
31,386
6,349
10,824
79,162
53,008
11,659
14,495
62,164
14,716
29,887
6,683
10,878
4,505
4,303
3,906
4,039
3,931
3,917
3,774
3,811'
3,816
3,782
139,605
145,641
133,002
136,211
141,562
137,090
139,543
141,543
139,938
143,743
1. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
2. Data for assets vis-a-vis other banks in the United States and vis-a-vis
nonbanks are combined for dates before June 1984.
A56
3.14
International Statistics • August 1985
Continued
1984
Oct.
Nov.
1985
Dec.
Jan.
Feb.
Mar.
Apr.?
All foreign countries
57 Total, all currencies
462,847
469,712
477,090
448,499
452,914
452,205
445,041
452,883'
462,098
460,440
58 Negotiable CDs 3
59 To United States
60 Parent bank
61 Other banks in United States
62 Nonbanks
n.a.
137,767
56,344
19,197
62,226
n.a.
179,015
75,621
33,405
69,989
n.a.
188,070
81,261
29,453
77,356
38,520
139,567
74,757
18,967'
45,843'
37,915
138,498'
70,284'
18,679'
49,535'
37,725
146,955
78,111
18,409'
50,435'
38,804
143,680
75,230
18,125'
50,325'
41,798
140,914'
72,338'
17,831'
50,745'
40,889
145,383
75,400
18,073
51,910
38,940
145,078
75,353
19,445
50,280
63 To foreigners
64 Other branches of parent bank
65 Banks
66 Official institutions
67 Nonbank foreigners
68 Other liabilities
305,630
86,396
124,906
25,997
68,331
19,450
270,853
90,191
96,860
19,614
64,188
19,844
269,685
90,615
92,889
18,896
68,845
19,335
248,164
89,492
82,235
19,501
56,936
22,248
253,925
90,681
86,822
20,883
55,539
22,576
246,894
93,206
78,203
20,281
55,204
20,631
241,359
87,722
79,291
19,484
54,862
21,198
248,381'
89,872
84,013
19,356
56,140'
20,790'
253,901
94,564
82,611
20,831
55,895
21,925
254,869
91,856
83,647
21,730
57,636
21,553
69 Total payable in U.S. dollars
364,447
379,270
388,291
356,601
361,875
365,859
357,853
366,054'
369,049
365,269
70 Negotiable CDs 3
71 To United States
72 Parent bank
73 Other banks in United States
74 Nonbanks
n.a.
134,700
54,492
18,883
61,325
n.a.
175,528
73,295
33,040
69,193
n.a.
184,305
79,035
28,936
76,334
36,102
135,2%'
72,246
18,313'
44,737'
35,608
134,303
67,761'
18,128'
48,414'
35,227
142,943
75,626
17,935'
49,382'
36,295
139,811
72,892
17,587'
49,332'
39,544
137,154'
70,084'
17,302'
49,768'
38,197
141,028
72,959
17,524
50,545
35,958
140,300
72,721
18,790
48,789
75 To foreigners
76 Other branches of parent bank
77 Banks
78 Official institutions
79 Nonbank foreigners
80 Other liabilities
217,602
69,299
79,594
20,288
48,421
12,145
192,510
72,921
57,463
15,055
47,071
11,232
194,139
73,522
57,022
13,855
51,260
9,847
174,107
72,204
46,227'
14,850
40,826
11,0%
180,841
74,552
50,509
16,068
39,712
11,123
177,638
77,222
45,131
15,773
39,512
10,051
171,479
72,648
44,948
14,861
39,022
10,268
178,745
74,926
48,734
14,653
40,432
10,611'
179,593
79,027
44,812
16,049
39,705
10,231
178,787
76,024
45,207
17,138
40,418
10,224
149,534
United Kingdom
81 Total, all currencies
157,229
161,067
158,732
147,562
149,377
144,385
146,130
150,705
148,711
n.a.
38,022
5,444
7,502
25,076
n.a.
53,954
13,091
12,205
28,658
n.a.
55,799
14,021
11,328
30,450
34,948
26,558
16,598
3,418'
6,542'
34,269
25,338
15,060'
3,074'
7,204'
34,413
25,250
14,651
3,125'
7,474'
35,455
27,757
16,714
3,569'
7,474'
38,281
23,439
13,763
2,948'
6,728'
37,350
23,982
14,509
2,918
6,555
35,326
23,920
13,969
2,665
7,286
87 To foreigners
88 Other branches of parent bank
89 Banks
90 Official institutions
91 Nonbank foreigners
92 Other liabilities
112,255
16,545
51,336
16,517
27,857
6,952
99,567
18,361
44,020
11,504
25,682
7,546
95,847
19,038
41,624
10,151
25,034
7,086
77,985
21,023
32,436
9,650
14,876
8,071
81,217
20,846
34,739
10,505
15,127
8,553
77,424
21,631
30,436
10,154
15,203
7,298
75,039
20,199
31,216
9,084
14,540
7,879
80,418'
22,146
33,789
9,374
15,109'
7,3%'
80,722
23,699
32,003
10,305
14,715
8,651
80,977
21,951
32,259
11,590
15,177
8,488
93 Total payable in U.S. dollars
82 Negotiable CDs 3
83 To United States
84 Parent bank
85 Other banks in United States
86 Nonbanks
120,277
130,261
131,167
118,103
119,287
117,497
117,198
120,623
117,984
116,128
94 Negotiable CDs3
95 To United States
96 Parent bank
97 Other banks in United States
98 Nonbanks
n.a.
37,332
5,350
7,249
24,733
n.a.
53,029
12,814
12,026
28,189
n.a.
54,691
13,839
11,044
29,808
33,703
25,178
16,209
3,174'
5,795'
33,168
24,024
14,688'
2,862'
6,474'
33,070
24,105
14,339
2,980'
6,786'
34,084
26,587
16,349
3,420'
6,818'
37,033
22,386
13,506
2,804'
6,076'
35,719
22,481
14,129
2,748
5,604
33,763
22,219
13,507
2,500
6,212
99 To foreigners
100 Other branches of parent bank
101 Banks
102 Official institutions
103 Nonbank foreigners
104 Other liabilities
79,034
12,048
32,298
13,612
21,076
3,911
73,477
14,300
28,810
9,668
20,699
3,755
73,279
15,403
29,320
8,279
20,277
3,197
55,482
17,600
18,309
8,306
11,267
3,740
58,163
17,562
20,262
9,072
11,267
3,932
56,923
18,294
18,356
8,871
11,402
3,399
52,954
16,940
17,889
7,748
10,377
3,573'
57,654
18,772
20,022
7,854
11,006
3,550
56,327
20,127
17,191
8,734
10,275
3,457
56,535
18,513
17,497
9,989
10,536
3,611
144,665
Bahamas and Caymans
105 Total, all currencies
149,108
145,156
152,083
138,981
141,610
146,811
141,834
147,041
145,108
106 Negotiable CDs3
107 To United States
108 Parent bank
109 Other banks in United States
110 Nonbanks
n.a.
85,759
39,451
10,474
35,834
n.a.
104,425
47,081
18,466
38,878
n.a.
111,299
50,980
16,057
44,262
878
95,249
42,851
14,167
38,231
898
95,975
40,517
14,187
41,271
615
102,955
47,162'
13,938
41,855
734
98,466
43,783
13,320
41,363
953
99,20c
43,358'
13,590'
42,252
779
103,0%
45,441
13,959
43,696
634
100,492
43,762
15,112
41,618
111 To foreigners
112 Other branches of parent bank
113 Banks
114 Official institutions
115 Nonbank foreigners
116 Other liabilities
60,012
20,641
23,202
3,498
12,671
3,337
38,274
15,796
10,166
1,967
10,345
2,457
38,445
14,936
11,876
1,919
11,274
2,339
39,872
14,823
13,068
2,211
9,770
2,982
41,764
16,455
13,993
2,376
8,940
2,973
40,320
16,782
12,405
2,054
9,079
2,921
39,785
16,014
12,274
2,020
9,477
2,849
41,529
17,111
12,976
1,992
9,450
2,983'
40,308
16,744
12,503
1,884
9,177
2,858
41,102
17,179
13,469
1,598
8,856
2,880
145,284
141,908
148,278
135,326
137,874
143,590
138,200
140,973'
143,223
140,957
117 Total payable in U.S. dollars
3. Before June 1984, liabilities on negotiable CDs were included in liabilities to
the United States or liabilities to foreigners, according to the address of the initial
purchaser.
Summary Statistics
3.15
A57
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1984
Item
1 Total
2
3
4
5
6
7
8
9
10
11
12
1
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
1982
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.P
172,718
177,950
176,258
178,468
180,640
176,828
173,334
169,780
170,593
24,989
46,658
25,534
54,341
26,934
55,780
25,986
59,570
26,197
59,976
23,310
56,662
23,420
52,474
22,979
54,685
22,673
57,226
67,733
8,750
24,588
68,514
7,250
22,311
67,678
5,800
20,066
67,076
5,800
20,036
68,995
5,800
19,672
71,522
5,800
19,534
72,846
5,300
19,294
67,568
5,300
19,248
67,079
4,900
18,715
61,298
2,070
6,057
96,034
1,350
5,909
67,645
2,438
6,248
92,572
958
8,089
68,296
1,321
8,141
91,916
981
5,603
70,510
1,466
8,904
90,115
1,423
6,050
69,756
1,528
8,645
93,951
1,290
5,470
68,260
1,491
7,450
93,044
1,120
5,463
67,354
1,136
7,278
91,030
1,397
5,139
63,708
1,715
7,518
90,714
1,200
4,925
65,645
1,403
7,528
90,001
1,403
4,613
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
1985
1983
5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
NOTE. Based on Treasury Department data and on data reported to the
Treasury Department by banks (including Federal Reserve Banks) and securities
dealers in the United States.
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
1984
Item
1981
1982
June
1 Banks' own liabilities
2 Banks' own claims
3 Deposits
4 Other claims
5 Claims of banks' domestic customers1
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.
3,523
4,980
3,398
1,582
971
4,844
7,707
4,251
3,456
676
1985
1983
5,219
7,231
2,731
4,501
1,059
6,459
9,687
4,284
5,404
227
Sept.
6,227
9,334
3,685
5,649
281
Dec.
7,501
10,956''
4,119'
6,837
569
Mar.P
6,774
12,645
6,174
6,471
440
NOTE. Data on claims exclude foreign currencies held by U.S. monetary
authorities,
A58
3.17
International Statistics • August 1985
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Reported by Banks in the United States
Millions of dollars, end of period
1984
Holder and type of liability
1981A
1982
1985
1983
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.P
1 All foreigners
243,889
307,056
369,607
388,894
399,681
406,381
398,987
405,198'
413,063
410,463
2 Banks' own liabilities
3 Demand deposits
4 Time 2deposits1
5 Other
6 Own foreign offices3
163,817
19,631
29,039
17,647
97,500
227,089
15,889
68,797
23,184
119,219
279,087
17,470
90,632
25,874
145,111
290,184
16,490
109,608
24,441
139,645
297,857
18,351
112,218
23,684
143,604
306,758
19,542
110,235
26,332
150,650
301,398
17,975
114,145
23,542
145,736
311,627'
19,369
117,065'
24,991'
150,202'
316,935
18,174
119,265
24,8%
154,600
312,565
18,438
117,570
24,233
152,324
80,072
55,315
79,967
55,628
90,520
68,669
98,710
73,295
101,824
76,531
100,074
75,838
97,588
73,635
93,572'
69,189
96,128
71,552
97,898
73,077
18,788
5,970
20,636
3,702
17,467
4,385
20,281
5,135
19,703
5,590
18,775
5,460
18,141
5,812
18,068'
6,315'
18,099
6,477
18,279
6,543
2,721
4,922
5,957
4,801
5,852
4,083
6,929
5,812
5,905
6,047
638
262
58
318
1,909
106
1,664
139
4,632
297
3,584
750
2,053
144
1,513
3%
2,779
354
2,114
311
1,644
263
1,093
288
3,571
417
2,682
472
2,092
341
936
815
2,333
191
1,488
654
3,018
167
2,211
640
2,083
541
3,013
1,621
1,325
463
2,748
1,455
3,073
1,448
2,440
916
3,358
1,921
3,719
2,258
3,572
2,082
3,029
1,434
1,542
0
1,392
0
862
0
1,292
0
1,604
21
1,524
0
1,429
8
1,461
1
1,490
0
1,593
2
20 Official institutions8
79,126
71,647
79,876
82,714
85,556
86,173
79,972
75,894
77,663
79,899
21 Banks' own liabilities
22 Demand deposits
23 Time deposits1
24 Other2
17,109
2,564
4,230
10,315
16,640
1,899
5,528
9,212
19,427
1,837
7,318
10,272
19,247
1,725
8,677
8,846
18,790
2,133
9,457
7,201
19,065
1,823
9,391
7,852
16,970
1,780
8,371
6,818
17,249
1,881
8,673'
6,694'
16,765
1,923
8,464
6,378
16,593
2,044
9,071
5,478
25 Banks' custody liabilities4
26 U.S. Treasury bills and certificates5
27 Other negotiable6 and readily transferable
instruments
28 Other
62,018
52,389
55,008
46,658
60,448
54,341
63,467
55,780
66,766
59,570
67,108
59,976
63,002
56,662
58,645
52,474
60,898
54,685
63,306
57,226
9,581
47
8,321
28
6,082
25
7,626
61
7,010
186
7,038
94
6,277
63
6,086
85
6,109
105
5,947
133
136,008
185,881
226,887
233,555
239,806
248,360
241,515
250,039'
257,437
252,848
169,449
50,230
8,675
28,386
205,347
60,236
8,759
37,439
209,431
69,786
8,389
46,770
214,240
72,635
9,430
47,717
225,512
74,862
10,526
47,059
218,980
73,244
9,030
48,612
227,703'
77,501'
9,656
50,982'
235,004
80,404
9,151
54,182
230,415
78,091
9,343
51,580
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
29 Banks9
30 Banks' own liabilities
31 Unaffiliated foreign banks
32
Demand deposits
33
Time 2deposits1
34
Other
35 Own foreign offices3
124,312
26,812
11,614
8,720
6,477
13,169
14,038
14,627
15,488
17,278
15,602
16,862'
17,071
17,168
97,500
119,219
145,111
139,645
143,604
150,650
145,736
150,202'
154,600
152,324
36 Banks' custody liabilities4
37 U.S. Treasury bills and certificates
38 Other negotiable6 and readily transferable
instruments
39 Other
11,696
1,685
16,432
5,809
21,540
10,178
24,124
11,828
23,566
11,409
22,848
10,927
22,535
10,933
22,336'
10,493
22,433
10,602
22,432
10,446
4,400
5,611
7,857
2,766
7,485
3,877
7,802
4,494
7,360
4,797
7,156
4,766
6,487
5,114
6,254'
5,589'
6,206
5,625
6,235
5,751
40 Other foreigners
26,035
44,606
56,887
67,824
68,467
68,215
70,571
73,454'
72,058
71,670
41 Banks' own liabilities
42 Demand deposits
43
Time deposits
44 Other2
21,759
5,191
16,030
537
39,092
5,209
33,219
664
49,680
6,577
42,290
813
59,453
6,232
52,648
573
60,048
6,433
52,930
685
60,537
6,930
52,693
914
61,877
6,747
54,481
650
64,583'
7,491
56,473'
619
62,834
6,909
55,132
793
62,539
6,883
54,708
947
4,276
699
5,514
1,540
7,207
3,686
8,372
4,232
8,419
4,103
7,678
4,020
8,693
4,118
8,871
3,964
9,224
4,182
9,131
3,971
3,265
312
3,065
908
3,038
483
3,560
580
3,730
586
3,058
601
3,948
628
4,267
640
4,294
748
4,503
657
10,747
14,307
10,346
10,714
10,437
10,476
9,287
9,169'
9,412
9,145
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
• 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.
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."
Nonbank-Reported
3.17
Data
Continued
1985
1984
Area and country
1981A
1982
1983
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.P
1
243,889
307,056
369,607
388,894
399,681
406,831
398,987
405,198'
413,063
410,463
2 Foreign countries
241,168
302,134
363,649
384,094
393,829
402,748
392,057
399,387'
407,158
404,417
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
117,756
519
2,517
509
748
8,171
5,351
537
5,626
3,362
1,567
388
1,405
1,390
29,066
2%
48,172
499
7,006
50
576
138,072
585
2,709
466
531
9,441
3,599
520
8,462
4,290
1,673
373
1,603
1,799
32,246
467
60,683
562
7,403
65
596
146,308
744
4,093
337
407
11,641
3,331
609
8,976
4,421
1,895
540
1,905
1,945
32,461
557
65,280
579
6,062
50
476
150,659
627
3,613
434
487
11,935
3,425
602
11,056
5,077
1,693
552
1,873
1,839
31,494
457
67,964
565
6,429
54
481
152,395
615
4,114
438
418
12,701
3,353
699
10,757
4,799
1,548
597
2,082
1,676
31,054
584
68,553
602
7,184
79
542
149,264
734
4,000
452
425
11,908
3,586
615
9,477
4,663
1,712
570
2,016
2,133
31,397
495
68,039
545
5,855
66
575
152,221'
625
4,638
530'
735'
12,430
3,258
583
9,108'
4,622
1,635'
614
1,887
1,486'
31,580'
501
70,269'
602
6,628
60
431
151,599
670
4,797
452
804
12,776
2,922
730
8,412
4,934
1,889
715
2,078
1,667
30,426
527
70,244
671
6,273
94
517
149,214
537
4,824
557
476
13,626
3,538
649
7,895
4,448
2,138
698
1,999
1,908
30,050
506
68,339
648
5,774
125
481
3 Europe
4 Austria
5 Belgium-Luxembourg
6 Denmark
7 Finland
8 France
9 Germany
10 Greece
11 Italy
1? Netherlands
13 Norway
14 Portugal
is Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
21 Other Western Europe1
V
U.S.S.R
23 Other Eastern Europe2
24 Canada
10,250
12,232
16,026
16,767
16,549
16,048
16,233
18,263'
17,328
17,000
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
3S Guatemala
36 Jamaica
37 Mexico
38 Netherlands Antilles
39 Panama
40 Peru
41 Uruguay
4? Venezuela
43 Other Latin America and Caribbean
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
114,163
3,578
44,744
1,572
2,014
26,381
1,626
2,594
9
455
670
126
8,377
3,597
4,805
1,147
759
8,417
3,291
140,088
4,038
55,818
2,266
3,168
34,545
1,842
1,689
8
1,047
788
109
10,392
3,879
5,924
1,166
1,244
8,632
3,535
145,799
4,484
52,838
3,043
4,729
34,485
2,052
2,022
8
924
855
122
12,488
4,187
6,585
1,297
1,361
10,367
3,952
149,794
4,558
55,470
3,222
4,997
34,385
2,063
2,057
8
1,029
884
110
13,422
4,180
6,847
1,209
1,309
10,013
4,030
153,985
4,424
56,955
2,370
5,332
36,949
2,001
2,514
10
1,092
896
183
12,695
4,153
6,928
1,247
1,394
10,545
4,297
151,229
4,523
55,398
2,706
4,920
35,269
1,948
2,356
26
912
920
157
13,298
4,346
6,873
1,151
1,485
10,667
4,275
154,787'
4,354'
56,928'
3,410'
6,143
35,157
1,916
2,453
8
981
915
182
13,00c
4,662
7,149'
1,064'
1,413
10,740'
4,311
157,545
4,528
59,471
2,907
4,595
36,537
1,897
2,529
7
1,024
950
163
13,250
4,576
7,488
1,132
1,443
10,648
4,401
156,622
4,676
59,037
3,133
4,675
35,742
1,908
2,400
6
1,022
955
154
13,163
4,383
7,582
1,077
1,461
10,790
4,458
44
49,822
48,716
58,570
66,033
66,952
71,139
66,536
64,981'
72,058
73,092
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
249
4,051
6,657
464
997
1,722
18,079
1,648
1,234
747
12,976
9,748
804
5,098
6,236
616
1,344
2,017
19,644
1,552
1,097
980
13,890
12,755
844
5,142
6,535
606
893
1,023
20,750
1,609
1,252
1,458
13,399
13,442
1,153
4,975
7,240
507
1,033
1,268
20,929
1,691
1,3%
1,257
16,804
12,886
1,075
5,098
6,558
554
1,136
1,003
21,662
1,560
1,327
1,161
15,965
9,437
1,068
5,187'
6,648
725
914
994'
22,551'
1,584'
1,113'
1,050'
15,202
7,945
980
5,306
6,937
738
1,052
941
24,513
1,526
1,102
1,383
16,391
11,190
912
5,236
7,091
554
1,104
873
22,754
1,536
1,207
1,141
16,265
14,418
3,180
360
32
420
26
1,395
946
3,124
432
81
292
23
1,280
1,016
2,827
671
84
449
87
620
917
3,343
763
115
459
141
1,012
852
3,599
739
117
460
163
1,141
978
3,506
757
118
328
153
1,189
%1
3,170
541
115
376
76
1,186
876
3,561'
637'
1W
371
79
1,450
91C
3,476
715
167
244
100
1,346
903
3,611
841
155
339
128
1,177
969
64 Other countries
6S Australia
66 All other
1,419
1,223
196
6,143
5,904
239
8,067
7,857
210
5,844
5,464
379
6,277
5,598
679
5,674
5,290
384
5,624
5,248
377
5,574'
5,017'
557'
5,152
4,742
409
4,877
4,455
421
67 Nonmonetary international and regional
organizations
68 International
69 Latin American5 regional
70 Other regional
2,721
1,661
710
350
4,922
4,049
517
357
5,957
5,273
419
265
4,801
4,086
518
196
5,852
5,055
593
204
4,083
3,376
587
120
6,929
6,165
600
165
5,812
4,935
580
296
5,905
5,132
632
141
6,047
5,182
706
159
45
46
47
48
49
SO
SI
5?
S3
54
SS
56
57
58
59
60
61
6?
63
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Korea
Philippines
Thailand
Middle-East oil-exporting countries3
Egypt
Morocco
South Africa
Oil-exporting countries4
Other Africa
• 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.
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."
A59
A60
3.18
International Statistics • August 1985
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1984
Area and country
1981A
1982
1985
1983
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.''
r
1 Total
251,589
355,705
391,312
383,489
384,634
398,722
386,911
393,182
396,936
389,567
2 Foreign countries
251,533
355,636
391,148
382,807
384,072
398,048
385,986
392,882'
3%, 696
389,487
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
85,584
229
5,138
554
990
7,251
1,876
452
7,560
1,425
572
950
3,744
3,038
1,639
560
45,781
1,430
368
263
1,762
91,927
401
5,639
1,275
1,044
8,766
1,284
476
9,018
1,267
690
1,114
3,573
3,358
1,863
812
47,364
1,718
477
192
1,598
95,415
521
5,363
544
887
8,812
1,097
929
7,820
1,190
676
1,346
3,189
2,362
2,067
1,121
53,348
1,868
660
159
1,454
97,930
532
4,988
520
1,098
9,299
1,261
819
8,854
1,229
602
1,262
3,017
2,313
2,275
1,097
54,637
1,866
625
169
1,467
97,962
433
4,794
648
898
9,085
1,305
817
9,079
1,351
675
1,243
2,884
2,220
2,201
1,130
55,184
1,886
596
142
1,391
96,044
339
4,683
589
817
8,617
1,001
896
8,040
1,480
651
1,212
2,858
2,497
2,308
1,232
54,843
1,862
671
118
1,329
97,995'
367
5,097
589
907
9,602'
945'
840
8,481
1,490
808
1,286
3,135'
2,586
2,110'
1,155
54,648'
1,783
679'
178'
1,308'
101,624
484
5,233
638
826
10,017
1,072
847
8,687
1,350
625
1,184
2,974
2,342
1,921
1,172
58,100
1,793
642
400
1,317
99,524
509
5,152
601
804
10,274
1,011
907
8,256
1,401
748
1,151
2,890
2,338
1,853
1,147
56,287
1,892
640
245
1,416
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
9,193
13,678
16,341
16,634
15,778
16,057
16,343
19,082'
18,761
18,155
138,347
7,527
43,542
346
16,926
21,981
3,690
2,018
3
1,531
124
62
22,439
1,076
6,794
1,218
157
7,069
1,844
187,969
10,974
56,649
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
205,491
11,749
59,633
566
24,667
35,527
6,072
3,745
0
2,307
129
215
34,802
1,154
7,848
2,536
977
11,287
2,277
198,372
11,014
52,006
551
26,146
34,871
6,795
3,343
0
2,452
141
234
35,364
1,337
7,540
2,416
962
11,029
2,170
199,058
10,983
54,084
635
26,275
33,727
6,703
3,406
0
2,431
148
222
35,288
1,337
7,360
2,358
990
10,994
2,118
207,577
11,043
58,027
592
26,307
38,105
6,839
3,499
0
2,420
158
252
34,697
1,350
7,707
2,384
1,088
11,017
2,091
199,378
11,453
54,369
596
25,886
35,358
6,746
3,369
0
2,477
154
242
34,021
1,273
6,864
2,414
1,053
10,968
2,135
200,730'
11,280'
54,548'
448'
26,146
36,806
6,713
3,406
1
2,489
157
253
33,655'
1,393
7,071'
2,337
1,021
10,929
2,077'
202,980
11,157
57,579
463
26,099
36,546
6,775
3,316
0
2,470
154
233
33,410
1,254
7,083
2,345
1,019
10,937
2,140
198,723
11,163
55,521
632
26,206
35,237
6,704
3,246
0
2,467
154
223
32,490
1,319
7,039
2,351
1,032
10,785
2,154
49,851
60,952
67,837
62,356
61,398
66,380
64,387
65,351'
63,606
63,384
107
2,461
4,132
123
352
1,567
26,797
7,340
1,819
565
1,581
3,009
214
2,288
6,787
222
348
2,029
28,379
9,387
2,625
643
3,087
4,943
292
1,908
8,489
330
805
1,832
30,354
9,943
2,107
1,219
4,954
5,603
409
1,588
7,155
302
821
1,890
26,862
9,253
2,510
1,072
4,650
5,844
543
1,679
6,945
381
797
1,938
26,421
8,896
2,487
1,112
4,687
5,512
710
1,849
7,368
425
734
2,088
29,059
9,285
2,550
1,125
5,054
6,133
507
1,745
6,801
299
710
1,993
28,495
8,799
2,499
1,123
5,004
6,411
741
1,827
7,351
354
780
2,041
29,092'
8,813'
2,560
1,076
4,856
5,860
660
1,944
6,639
284
780
1,941
28,020
9,296
2,435
1,005
4,708
5,895
572
1,976
6,839
307
704
2,004
26,591
9,411
2,360
939
5,508
6,173
57 Africa
58 Egypt
59 Morocco
60 South Africa
61 Zaire
62 Oil-exporting countries5
63 Other
3,503
238
284
1,011
112
657
1,201
5,346
322
353
2,012
57
801
1,802
6,654
747
440
2,634
33
1,073
1,727
6,862
674
582
3,140
18
938
1,510
6,719
693
536
2,960
19
911
1,600
6,615
728
583
2,795
18
842
1,649
6,536
668
552
2,791
41
812
1,672
6,376'
584
582
2,666
29
791
1,724
6,221
674
584
2,420
24
874
1,645
6,299
629
595
2,508
24
893
1,651
64 Other countries
65 Australia
66 All other
1,376
1,203
172
2,107
1,713
394
2,898
2,256
642
3,169
2,508
661
3,189
2,487
702
3,456
2,778
678
3,297
2,593
704
3,348
2,635
713
3,505
2,824
681
3,402
2,754
648
56
68
164
681
562
674
925
300
240
80
24 Canada
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
3
35 Guatemala
36 Jamaica3
37 Mexico
38 Netherlands Antilles
39 Panama
40 Peru
41 Uruguay
42 Venezuela
43 Other Latin America and Caribbean
44
45
46
47
48
49
50
51
52
53
54
55
56
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle East oil-exporting countries4
Other Asia
67 Nonmonetary international and regional
organizations6
• 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.
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.
Nonbank-Reported
3.19
Data
BANKS' OWN A N D DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
Millionsgpf dollars, end of period
1984
Type of claim
1981A
1982
1985
1983
Oct.
Nov.
383,489
61,367
143,631
120,879
46,787
74,092
57,612
384,634
61,443
144,809
120,890
45,788
75,102
57,492
Jan.
Feb.'
386,911
61,364
153,586
116,903
45,070
71,832
55,058
393,182
61,860
154,500
121,340
47,685
73,655
55,481
Dec.
Mar.
1 Total
287,557
396,015
426,215
2
3
4
5
6
7
8
251,589
31,260
96,653
74,704
23,381
51,322
48,972
355,705
45,422
127,293
121,377
44,223
77,153
61,614
391,312
57,569
146,393
123,837
47,126
76,711
63,514
35,968
1,378
40,310
2,491
34,903
2,969
32,916
3,380
33,428
3,871
26,352
30,763
26,064
23,805
24,369
8,238
7,056
5,870
5,732
5,188
29,952
38,153
37,715
36,575
35,222
40,369
42,499
45,856
Banks' own claims on foreigners
Foreign public borrowers
Own foreign offices1
Unaffiliated foreign banks
Deposits
Other
All other foreigners
9 Claims of banks' domestic customers2 ..
431,639
398,722
61,371
156,497
123,775
48,112
75,663
57,080
Apr.P
430,365
396,936
61,244
157,995
122,266
49,698
72,569
55,431
389,567
60,517
154,655
119,251
47,579
71,672
55,145
11 Negotiable and readily transferable
12 Outstanding collections and other
13 MEMO: Customer liability on
Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States4 . . . .
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
43,147'
44,322'
40,096'
41,896'
39,916
39,550
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
1984
Maturity; by borrower and area
1 Total
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 less1
Europe
Canada
Latin America and Caribbean
Africa 2
All other
Maturity of over 1 year1
14 Europe
15 Canada
16 Latin America and Caribbean
17
18 Africa 2
19 M o t h e r
1981A
1985
1983
June
Sept.
Dec.
Mar .P
154,590
228,150
243,715
249,904
240,595
243,049
238,041
116,394
15,142
101,252
38,197
15,589
22,608
173,917
21,256
152,661
54,233
23,137
31,095
176,158
24,039
152,120
67,557
32,521
35,036
172,474
21,066
151,407
77,430
37,747
39,683
162,863
21,059
141,804
77,731
38,410
39,321
165,200
22,076
143,124
77,849
39,620
38,229
163,965
23,671
140,295
74,076
37,518
36,558
28,130
4,662
48,717
31,485
2,457
943
50,500
7,642
73,291
37,578
3,680
1,226
56,117
6,211
73,660
34,403
4,199
1,569
59,924
6,959
65,136
34,012
4,790
1,652
56,773
5,841
61,479
32,252
4,798
1,720
58,170
5,978
60,692
33,450
4,442
2,468
59,709
7,425
60,147
30,349
4,101
2,234
8,100
1,808
25,209
1,907
900
272
11,636
1,931
35,247
3,185
1,494
740
13,576
1,857
43,888
4,850
2,286
1,101
12,778
2,203
54,249
5,098
1,865
1,237
11,249
1,801
56,568
5,106
1,857
1,150
9,590
1,890
57,834
5,386
2,033
1,116
8,558
2,178
55,007
5,336
1,964
1,035
• 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.
1982
1. Remaining time to maturity,
2. Includes nonmonetary international and regional organizations,
A61
A62
International Statistics • August 1985
3.21
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks'
Billions of dollars, end of period
1982
Area or country
1980
1983
1984
1985
1981
Dec.
June
Sept.
Dec.
Mar.
June7
Sept.
Dec.'
Mar.?
352.0
415.2
438.7
439.9
431.0
437.3
435.1r
430.6'
410.1'
407.7
409.2
162.1
13.0
14.1
12.1
8.2
4.4
2.9
5.0
67.4
8.4
26.5
175.5
13.3
15.3
12.9
9.6
4.0
3.7
5.5
70.1
10.9
30.2
179.7
13.1
17.1
12.7
10.3
3.6
5.0
5.0
72.1
10.4
30.2
177.1
13.3
17.1
12.6
10.5
4.0
4.7
4.8
70.8
10.8
28.5
168.8
12.6
16.2
11.6
9.9
3.6
4.9
4.2
67.8
8.9
29.0
168.0
12.4
16.3
11.3
11.4
3.5
5.1
4.3
65.4
8.3
29.9
166.C
11.0
15.9
11.7
11.2
3.4
5.2
4.3
65.1
8.6
29.7'
157.7'
10^
14.2'
10.9'
11.5
3.0
4.3
4.2
60.5'
8.9
29.3'
148.C
9.8
14.3
10.0
9.7
3.4
3.5
3.9
57.4
8.1
27.9
147.6
8.8
14.1
9.0
10.1
3.9
3.2
3.9
59.8
7.8
27.2
152.0
9.4
14.5
8.9
10.0
3.7
3.1
4.2
64.4
9.0
24.8
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
21.6
1.9
2.3
1.4
2.8
2.6
.6
4.4
1.5
1.7
1.1
1.3
28.4
1.9
2.3
1.7
2.8
3.1
1.1
6.6
1.4
2.1
2.8
2.5
33.7
1.9
2.4
2.2
3.0
3.3
1.5
7.5
1.4
2.3
3.7
4.4
34.5
2.1
3.4
2.1
2.9
3.4
1.4
7.2
1.4
2.0
3.9
4.5
34.3
1.9
3.3
1.8
2.9
3.2
1.4
7.1
1.5
2.1
4.7
4.4
36.1
1.9
3.4
2.4
2.8
3.3
1.5
7.1
1.7
1.8
4.7
5.5
35.7
2.0
3.4
2.1
3.0
3.2
1.4
7.1
1.9
1.8
4.8
5.2
37.1
1.9'
3.1
2.3
3.3
3.2
1.7
7.3
2.0
1.9
4.7
5.7
36.3
1.8
2.9
1.9
3.2
3.2
1.6
6.9
2.0
1.7
5.0
6.2
33.8
1.6
2.2
1.9
2.9
3.0
1.4
6.5
1.9
1.7
4.5
6.1
33.0
1.6
2.1
1.8
2.9
2.9
1.4
6.4
1.9
1.7
4.2
6.2
25 OPEC countries2
26 Ecuador
27 Venezuela
28 Indonesia
29 Middle East countries
30 African countries
22.7
2.1
9.1
1.8
6.9
2.8
24.8
2.2
9.9
2.6
7.5
2.5
27.4
2.2
10.5
3.2
8.7
2.8
28.3
2.2
10.4
3.2
9.5
3.0
27.2
2.1
9.8
3.4
9.1
2.8
28.9
2.2
9.9
3.8
10.0
3.0
28.6
2.1
9.7
4.0
9.8
3.0
26.7
2.1
9.5
4.0
8.4
2.7
25.0
2.1
9.2
3.8
7.4
2.5
25.6
2.2
9.3
3.7
8.2
2.3
25.3
2.2
9.2
3.6
7.8
2.4
31 Non-OPEC developing countries
77.4
96.3
107.1
108.8
109.8
111.6
112.2'
112.8'
111.9
112.2
111.3
7.9
16.2
3.7
2.6
15.9
1.8
3.9
9.4
19.1
5.8
2.6
21.6
2.0
4.1
8.9
22.9
6.3
3.1
24.5
2.6
4.0
9.4
22.7
5.8
3.2
25.3
2.6
4.3
9.5
23.1
6.3
3.2
25.9
2.4
4.2
9.5
23.1
6.4
3.2
26.1
2.4
4.2
9.5
25.1
6.5
3.1
25.6
2.3
4.4
9.2
25.4
6.7
3.0
26.0
2.3
4.1
9.1
26.3
7.1
2.9
26.1
2.2
3.9
8.7
26.3
7.0
2.9
25.8
2.2
3.9
8.6
26.4
7.0
2.8
25.7
2.2
3.8
.2
4.2
.3
1.5
7.1
1.1
5.1
1.6
.6
.2
5.1
.3
2.1
9.4
1.7
6.0
1.5
1.0
.2
5.3
.6
2.3
10.9
2.1
6.3
1.6
1.1
.2
5.1
.7
2.3
10.9
2.6
6.4
1.8
1.2
.2
5.2
.8
1.7
10.9
2.8
6.2
1.8
1.0
.3
5.3
1.0
1.9
11.3
2.9
6.2
2.2
1.0
.3
4.9
1.0
1.6
11.1
2.8
6.7
2.1
.9
.6
5.3
1.0
1.9
11.2
2.7
6.3
1.9
1.1
.5
5.2
1.1
1.7
10.3
3.0
5.9
1.8
1.0
.7
5.1
1.0
1.8
10.7
2.8
6.0
1.8
1.1
.7
5.3
1.0
1.7
10.5
2.8
6.1
1.7
1.1
Other Africa3
.8
.7
.2
2.1
1.1
.7
.2
2.3
1.2
.7
.1
2.4
1.3
.8
.1
2.2
1.4
.8
.1
2.4
1.5
.8
.1
2.3
1.4
.8
.1
2.2
1.4
.8
.1
1.9
1.2
.8
.1
1.9
1.2
.8
.1
2.1
1.1
.8
.1
2.1
52 Eastern Europe
53 U.S.S.R
54 Yugoslavia
55 Other
7.4
.4
2.3
4.6
7.8
.6
2.5
4.7
6.2
.3
2.2
3.7
5.8
.4
2.3
3.0
5.3
.2
2.3
2.8
5.3
.2
2.4
2.8
4.9
.2
2.3
2.5
4.9
.2
2.3
2.4
4.5
.2
2.3
2.1
4.4
.1
2.3
2.0
4.5
.4
2.2
1.9
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
47.0
13.7
.6
10.6
2.1
5.4
.2
8.1
5.9
.3
63.7
19.0
.7
12.4
3.2
7.7
.2
11.8
8.7
.1
66.8
19.0
.9
12.9
3.3
7.6
.1
13.9
9.2
.0
69.3
20.7
.8
12.7
2.6
6.6
.1
14.5
11.2
.0
68.7
21.6
.8
10.5
4.1
5.7
.1
15.2
10.5
.1
70.5
21.8
.9
12.2
4.2
6.0
.1
15.0
10.3
.0
71.4'
24.6
.7
12.0'
3.3
6.3
.1
14.4
10.0
.0
74.1'
27.5'
.7
12.2'
3.3
6.6
.1
13.5
10.2
.0
66.9'
23.7
1.0
11.1'
3.1
5.7
.1
12.7
9.5
.0
66.8
21.5
.9
11.7
3.4
6.8
.1
12.5
9.8
.0
66.3
21.5
.7
12.6
3.3
5.7
.1
12.4
10.0
.0
66 Miscellaneous and unallocated6
14.0
18.8
17.9
16.2
16.9
17.0
16.3
17.3
17.3
17.3
16.9
1 Total
2 G-10 countries and Switzerland
3 Belgium-Luxembourg
4 France
5 Germany
6 Italy
7 Netherlands
8 Sweden
9 Switzerland
10 United Kingdom
11 Canada
12 Japan
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
Asia
China
Mainland
Taiwan
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
Africa
Egypt
Morocco
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.
7. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
Nonbank-Reported
3.22
Data
A63
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States 1
Millions of dollars, end of period
1984
1983
Type, and area or country
1981
980
1982
Mar.
Dec.
Sept.
June
Dec.''
1 Total
29,434
28,618
27,512
25,197
29,481
34,013
30,738
28,788
2 Payable in dollars
3 Payable in foreign currencies
25,689
3,745
24,909
3,709
24,280
3,232
22,176
3,020
26,243
3,237
30,815
3,198
27,934
2,804
25,915
2,873
By type
4 Financial liabilities
5 Payable in dollars
6 Payable in foreign currencies
11,330
8,528
2,802
12,157
9,499
2,658
11,066
8,858
2,208
10,423
8,644
1,779
14,177
12,159
2,018
18,339
16,297
2,043
15,879
14,082
1,797
13,932
12,064
1,868
7 Commercial liabilities
8 Trade payables
9 Advance receipts and other liabilities..
18,104
12,201
5,903
16,461
10,818
5,643
16,446
9,438
7,008
14,774
7,765
7,009
15,304
7,893
7,411
15,674
7,897
7,776
14,859
6,900
7,959
14,857
6,990
7,867
17,161
943
15,409
1,052
15,423
1,023
13,533
1,241
14,085
1,219
14,518
1,155
' 13,852
1,007
13,851
1,006
6,481
479
327
582
681
354
3,923
6,825
471
709
491
748
715
3,565
6,501
505
783
467
711
792
3,102
5,691
302
843
492
581
486
2,839
7,087
428
956
514
527
641
3,790
7,230
359
900
561
583
563
4,013
6,679
428
910
521
595
514
3,463
6,798
471
995
489
578
569
3,389
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
964
963
746
764
795
735
825
863
3,136
964
1
23
1,452
99
81
3,356
1,279
7
22
1,241
102
98
2,751
904
14
28
1,027
121
114
2,607
751
13
32
1,018
213
124
4,912
1,419
51
37
2,635
243
121
8,888
3,603
13
25
4,457
237
124
6,780
2,606
11
33
3,250
260
130
4,556
1,423
13
35
2,059
369
137
723
644
38
976
792
75
1,039
715
169
1,332
898
170
1,355
947
170
1,462
1,013
180
1,566
1,085
144
1,682
1,121
147
Africa
Oil-exporting countries3
11
1
14
0
17
0
19
0
19
0
16
0
16
1
14
0
All other4
15
24
12
10
9
9
14
19
4,402
90
582
679
219
499
1,209
3,770
71
573
545
220
424
880
3,831
52
598
468
346
367
1,027
3,245
62
437
427
268
241
732
3,567
40
488
417
259
477
847
3,409
45
525
501
265
246
794
3,961
34
430
558
239
405
1,133
3,987
48
438
619
245
257
1,082
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
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
33
34
35
36
37
38
39
40
888
897
1,495
1,841
1,776
1,840
1,906
1,975
1,300
8
75
111
35
367
319
1,044
2
67
67
2
340
276
1,570
16
117
60
32
436
642
1,473
1
67
44
6
585
432
1,807
14
158
68
33
682
560
1,705
17
124
31
5
568
630
1,758
1
110
68
8
641
628
1,871
7
114
124
32
586
636
10,242
802
8,098
9,384
1,094
7,008
8,144
1,226
5,503
6,741
1,247
4,178
6,620
1,291
3,735
6,989
1,235
4,190
5,569
1,429
2,364
5,307
1,256
2,372
Africa
Oil-exporting countries3
817
517
703
344
753
277
553
167
539
243
684
217
597
251
588
233
All other4
456
664
651
921
995
1,046
1,068
1,128
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
48
49
50
Asia
Japan
Middle East oil-exporting countries2'5
51
52
53
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p . 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.
A64
3.23
International Statistics • August 1985
CLAIMS ON UNAFFILIATED FOREIGNERS
United States 1
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1983
Type, and area or country
1980
1981
1984
1982
Dec.
Mar.
June
Sept.
Dec.P
1 Total
34,482
36,185
28,725
34,932
33,645
31,740
30,183
28,673
2 Payable in dollars
3 Payable in foreign currencies
31,528
2,955
32,582
3,603
26,085
2,640
31,842
3,090
30,755
2,890
28,770
2,970
27,391
2,792
26,068
2,605
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
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
17,684
13,058
12,628
430
4,626
2,979
1,647
23,801
18,356
17,859
497
5,445
3,489
1,956
22,781
17,486
17,057
429
5,2%
3,506
1,790
21,292
16,124
15,614
510
5,168
3,407
1,761
19,794
15,014
14,574
439
4,781
3,088
1,693
18,108
13,475
13,056
420
4,632
3,182
1,450
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
14,720
13,960
759
15,043
14,007
1,036
11,041
9,994
1,047
11,131
9,721
1,410
10,864
9,540
1,323
10,448
9,105
1,343
10,389
8,885
1,503
10,565
9,084
1,481
14
15
14,233
487
14,527
516
10,478
563
10,494
637
10,193
671
9,749
699
9,729
659
9,830
735
6,069
145
298
230
51
54
4,987
4,5%
43
285
224
50
117
3,546
4,873
15
134
178
97
107
4,064
6,434
37
150
159
71
38
5,767
6,252
30
171
148
57
90
5,548
6,364
37
151
161
158
61
5,543
5,569
15
146
187
62
64
4,863
5,365
15
114
220
66
66
4,486
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
5,036
6,755
4,377
6,166
5,665
5,180
4,419
3,964
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
7,811
3,477
135
96
2,755
208
137
8,812
3,650
18
30
3,971
313
148
7,546
3,279
32
62
3,255
274
139
10,144
4,745
%
53
4,163
291
134
9,823
3,927
3
87
4,903
279
130
8,469
3,213
5
83
4,348
230
124
8,633
3,255
5
84
4,423
232
128
7,512
2,951
6
100
3,703
215
125
31
32
33
Asia
Japan
Middle East oil-exporting countries2
607
189
20
758
366
37
698
153
15
764
297
4
753
309
7
%3
307
8
900
371
7
944
353
37
34
35
Africa
Oil-exporting countries3
208
26
173
46
158
48
147
55
144
42
158
35
160
37
210
85
32
48
31
145
145
158
113
114
5,544
233
1,129
599
318
354
929
5,405
234
776
561
299
431
985
3,826
151
474
357
350
360
811
3,670
135
459
348
334
317
809
3,610
173
413
363
310
336
787
3,555
142
408
443
306
250
812
3,570
128
411
370
303
289
891
3,805
138
439
374
340
271
1,061
36
37
38
39
40
41
42
43
All other
4
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
914
%7
633
829
1,061
933
1,026
1,020
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
3,766
21
108
861
34
1,102
410
3,479
12
223
668
12
1,022
424
2,526
21
261
258
12
775
351
2,695
8
190
493
7
884
272
2,419
8
216
357
7
745
268
2,042
4
89
310
8
577
241
1,976
14
88
219
10
595
245
1,972
8
115
214
7
583
206
52
53
54
Asia
Japan
Middle East oil-exporting countries2
3,522
1,052
825
3,959
1,245
905
3,050
1,047
751
3,063
1,114
737
2,997
1,186
701
3,085
1,178
710
2,884
1,080
703
3,070
1,180
687
55
56
Africa
Oil-exporting countries3
653
153
772
152
588
140
588
139
497
132
536
128
595
135
470
134
57
All other4
321
461
417
286
280
297
338
228
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
Securities Holdings and Transactions
3.24
A65
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1985
Transactions, and area or country
1983
1985
1984
1984
Jan.Apr.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.P
U.S. corporate securities
STOCKS
69,770
64,360
60,462
63,388
23,539
24,700
4,657
5,398
4,838
4,746
4,487
5,049
3 Net purchases, or sales ( - )
5,410
-2,926
-1,161
-741
92
4 Foreign countries
5,312
-3,041
-1,139
-752
81
3,979
-97
1,045
-109
1,325
1,799
1,151
529
-808
395
42
24
-2,986
-405
-50
-315
-1,490
-658
1,673
493
-1,998
-372
-23
171
-1,517
-50
-334
-266
-462
-434
246
510
-133
-313
-24
92
-529
-37
-10
-47
-130
-251
150
-89
-270
-92
-8
87
98
115
-22
24,000
23,097
39,341
26,071
24,202
12,423
1 Foreign purchases
2 Foreign sales
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
17 Nonmonetary international and
regional organizations
5,005
5,701
7,125'
7,i8<y
6,303
6,748
-562
-6%
-56"
-445
36
-461
-713
-51'
-402
28
-90
-46
11
-15
-34
17
47
30
-12
74
-8
39
-359
-54
-105
-29
-249
91
134
67
-1%
-91
-6
-11
-558
-19
-134
-44
-159
-178
46
103
-52
-264
-7
19
-215'
-41
-109
-108'
-133
129'
168'
158'
-101
-99
-2
40
-582
-13
-113
-129
-122
-195
-2
80
116
-41
-13
39
-161
24
23
16
-48
-191
33
169
-96
91
-1
-6
11
11
-101
17
-5
-43
8
6,994
3,060
4,902
2,556
6,403
2,900
5,937
3,106
8,219'
3,649
5,484
2,598
4,562
3,070
5,106
5,071
BONDS 2
18 Foreign purchases
19 Foreign sales
20 Net purchases, or sales ( - )
903
13,269
11,779
3,934
2,346
3,503
2,831
4,570
2,886
1,492
21 Foreign countries
888
12,972
11,728
3,954
2,133
3,527
2,835
4,489
2,936
1,468
909
-89
344
51
583
434
123
100
-1,161
865
0
52
11,792
207
1,731
93
644
8,520
-71
390
-1,011
1,862
1
10
11,363
47
-25
52
875
10,303
43
126
-841
1,008
0
29
3,956
143
606
22
253
2,860
-3
42
-232
192
0
0
1,954
-11
139
-1
159
1,603
13
44
-45
169
-2
2
3,338
24
184
15
276
2,776
14
78
-179
276
1
0
2,635
55
67
9
12
2,441
59
90
-123
140
0
35
4,143'
-17
-153
44
315
4,018
-11
50
-84
337
0
54
2,952
-10
-112
8
483
2,550
-5
69
-127
89
0
-41
1,634
18
174
-9
65
1,294
0
-83
-507
442
0
-19
15
297
51
-20
213
-24
-4
81
-50
25
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 East1
Other Asia
Africa
Other countries
34 Nonmonetary international and
regional organizations
Foreign securities
35 Stocks, net purchases, or sales ( - )
36 Foreign purchases
37 Foreign sales
-3,765
13,281
17,046
-1,077
14,591
15,668
-1,988
5,520
7,508
-318
1,333
1,651
-177
1,147
1,324
-221
1,169
1,390
-781
1,149
1,930
-652
1,562
2,215
-456
1,372
1,827
-100
1,437
1,536
38 Bonds, net purchases, or sales ( - )
39 Foreign purchases
40 Foreign sales
-3,239
36,333
39,572
-3,931
57,338
61,270
-1,272
21,9%
23,268
-1,195
4,527
5,722
-578
6,601
7,179
-1,159
5,134
6,293
168
5,3%
5,228
198
5,294
5,096
-948
5,652
6,600
-689
5,654
6,343
41 Net purchases, or sales ( - ) , of stocks and bonds . . . .
-7,004
-5,008
-3,260
-1,513
-755
-1,379
-613
-454
-1,404
-789
42
43
44
45
46
47
48
49
-6,559
-5,492
-1,328
1,120
-855
141
-144
-4,619
-8,532
413
2,472
1,345
-107
-210
-3,408
-2,848
-389
290
-563
-38
140
-1,477
-1,582
-68
217
-30
-19
6
-908
-707
-23
207
88
-16
-457
-671
-1,086
254
104
-115
3
169
-742
-732
75
194
-394
-4
120
-754
-91
-422
-47
-255
-3
64
-1,214
-1,205
-68
7
99
-26
-21
-698
-819
25
137
-13
-5
-22
-445
-389
148
-36
153
-709
129
300
-190
-91
Foreign countries
Europe
Canada
Latin America and Caribbean
Asia
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).
2. Includes state and local government securities, and securities of U.S.
government agencies and corporations. Also includes issues of new debt securi-
ties sold abroad by U.S. corporations organized to finance direct investments
abroad.
A66
3.25
International Statistics • August 1985
MARKETABLE U.S. TREASURY BONDS A N D NOTES
Foreign Transactions
Millions of dollars
1984
1985
Country or area
1985
1984
1983
Jan.Apr.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.?
Transactions, net purchases or sales ( - ) during period*
1 Estimated total2
3,693
21,412
4,662
2,931
2,197
7,508
2,312
2,319
-4,401
-4,433
2 Foreign countries2
3,162
16,432
3,562
1,092
2,293
5,066
3,797
2,163
-4,756
2,358
6,226
-431
2,450
375
170
-421
1,966
2,118
0
699
11,070
289
2,958
454
46
635
5,223
1,465
0
1,526
834
202
-1,488
-268
171
819
558
840
0
49
795
27
-39
458
-1
-172
742
-219
0
237
776
41
36
-7
1
-288
244
748
0
193
1,300
46
336
16
-88
26
716
248
0
249
532
104
-120
-71
150
-35
419
86
0
-92
-81
18
-129
11
-10
358
-342
12
0
-231
-1,435
0
-1,538
-201
1
313
293
-303
0
38
1,818
80
299
-7
30
183
188
1,045
0
334
-212
-124
60
-149
-3,535
2,315
3
-17
1,413
14
528
871
2,377
6,062
-67
114
1,267
6
311
950
1,308
3,031
17
87
320
1
61
258
-302
851
-1
43
965
7
57
902
369
1,287
-5
-5
380
-10
213
177
3,218
1,585
2
-83
149
5
-2
146
3,093
578
2
113
735
-11
71
674
1,726
559
1
14
-82
2
65
-149
-3,289
177
1
11
465
10
177
278
-222
1,717
13
-50
535
218
0
4,982
4,612
0
1,098
960
-1
1,839
1,651
0
-96
-188
0
2,442
2,361
0
-1,485
-1,675
0
154
504
1
355
338
0
2,074
1,792
-3
3,162
779
2,382
16,432
481
15,951
3,562
-1,916
5,479
1,092
-852
1,944
2,293
-602
2,895
5,066
1,919
3,147
3,797
2,527
1,270
2,163
1,324
840
-4,756
-5,278
521
2,358
-489
2,848
-5,419
-1
-6,277
-101
-618
0
-983
0
-1,284
0
-200
0
27
0
-372
0
554
0
-827
0
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
13 Latin America and Caribbean
14 Venezuela
15 Other Latin America and Caribbean
16 Netherlands Antilles
17
18 Japan
19
20 All other
21 Nonmonetary international and regional organizations
22 International
23 Latin American regional
MEMO
24 Foreign countries2
25 Official institutions
26 Other foreign2
27
28
Oil-exporting countries
Middle East3
Africa4
1. Estimated official and private transactions in marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based on
monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
2. Includes U.S. Treasury notes publicly issued to private foreign residents
denominated in foreign currencies.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria,
Interest and Exchange Rates
3.26
A67
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Austria..
Belgium.
Brazil...
Canada..
Denmark
Country
Country
Percent
Month
effective
4.5
June 1984
Feb. 1984
Mar. 1981
May 1985
Oct. 1983
11.0
49.0
9.57
7.0
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
3.27
Rate on May 31, 1985
Rate on May 31, 1985
Rate on May 31, 1985
Country
Percent
Month
effective
10.13
4.5
15.5
5.0
5.5
May 1985
June 1984
Jan. 1985
Oct. 1983
Feb. 1985
Month
effective
Percent
Norway
Switzerland
United Kingdom2.
Venezuela
4.0
June 1983
Mar. 1983
11.0
May 1983
8.0
or makes advances against eligible commercial paper and/or government commercial banks or brokers. For countries with more than one rate applicable to such
discounts or advances, the rate shown is the one at which it is understood the
central bank transacts the largest proportion of its credit operations.
FOREIGN SHORT-TERM INTEREST RATES
Percent per annum, averages of daily figures
1985
1984
Country, or type
1 Eurodollars
7 United Kingdom
3 Canada
4 Germany
5 Switzerland
6
7
8
9
10
Netherlands
France
Italy
Belgium
Japan
1982
1983
1984
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
12.24
12.21
14.38
8.81
5.04
9.57
10.06
9.48
5.73
4.11
10.75
9.91
11.29
5.96
4.35
9.50
9.87
11.09
5.92
5.03
8.90
9.74
10.41
5.81
4.96
8.37
11.63
9.70
5.84
5.13
9.05
13.69
10.63
6.13
5.66
9.32
13.52
11.42
6.36
5.77
8.74
12.70
10.15
5.99
5.35
8.13
12.61
9.77
5.87
5.15
8.26
14.61
19.99
14.10
6.84
5.58
12.44
18.95
10.51
6.49
6.08
11.66
17.08
11.41
6.32
5.87
10.54
17.13
10.81
6.32
5.77
10.66
16.86
10.75
6.33
5.87
10.43
15.82
10.75
6.27
6.90
10.60
15.79
10.75
6.29
7.14
10.71
15.82
10.75
6.30
6.82
10.49
15.15
10.09
6.26
6.90
10.15
14.91
9.35
6.26
NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate.
A68
3.28
I n t e r n a t i o n a l S t a t i s t i c s • A u g u s t 1985
FOREIGN EXCHANGE RATES
Currency units per dollar
1984
Country/currency
1982
1983
1985
1984
Dec.
Jan.
Feb.
Mar.
Apr.
May
Australia/dollar1
Austria/schilling
Belgium/franc
Brazil/cruzeiro
Canada/dollar
China, P.R./yuan
Denmark/krone
101.65
17.060
45.780
179.22
1.2344
1.8978
8.3443
90.14
17.968
51.121
573.27
1.2325
1.9809
9.1483
87.937
20.005
57.749
1841.50
1.2953
2.3308
10.354
84.00
21.802
62.380
3008.55
1.3201
2.7953
11.126
81.51
22.267
63.455
3346.67
1.3240
2.8160
11.330
73.74
23.190
66.310
3768.17
1.3547
2.8347
11.807
69.70
23.247
66.308
4158.19
1.3840
2.8533
11.797
65.84
21.717
62.283
4511.58
1.3658
2.8480
11.114
67.68
21.868
62.572
5239.00
1.3756
2.8556
11.2244
8
9
10
11
12
13
14
15
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee 1
Ireland/pound
Israel/shekel
4.8086
6.5793
2.428
66.872
6.0697
9.4846
142.05
24.407
5.5636
7.6203
2.5539
87.895
7.2569
10.1040
124.81
55.865
6.0007
8.7355
2.8454
112.73
7.8188
11.348
108.64
n.a.
6.4563
9.5083
3.1044
127.26
7.8287
12.293
100.37
n.a.
6.6368
9.7036
3.1706
129.38
7.8110
12.612
98.23
n.a.
6.8616
10.093
3.3025
134.73
7.8017
12.922
94.23
n.a.
6.8464
10.078
3.2982
140.62
7.8009
12.861
94.58
n.a.
6.4652
9.4427
3.0946
134.86
7.7902
12.400
101.17
n.a.
6.4641
9.4829
3.1093
137.239
7.7766
12.5004
100.71
n.a.
16
17
18
19
20
21
22
23
24
Italy/lira
Japan/yen
Malaysia/ringgit
Mexico/peso
Netherlands/guilder 1
New Zealand/dollar
Norway/krone
Philippines/peso
Portugal/escudo
1354.00
249.06
2.3395
72.990
2.6719
75.101
6.4567
8.5324
80.101
1519.30
237.55
2.3204
155.01
2.8543
66.790
7.3012
11.0940
111.610
1756.10
237.45
2.3448
192.31
3.2083
57.837
8.1596
n.a.
147.70
1912.52
247.96
2.4164
219.56
3.5035
48.260
8.9805
n.a.
167.31
1948.76
254.18
2.4804
227.56
3.5819
47.040
9.1765
n.a.
172.56
2042.00
260.48
2.5513
236.06
3.7387
45.223
9.4695
n.a.
183.24
2078.50
257.92
2.5734
246.15
3.7290
45.276
9.4608
n.a.
183.98
1975.89
251.84
2.4922
246.57
3.4981
45.520
8.9314
n.a.
174.56
1984.45
251.73
2.4759
254.8182
3.5097
45.197
8.9442
n.a.
177.545
25
26
27
28
29
30
31
32
33
34
35
Singapore/dollar 1
South Africa/rand
South Koreaywon
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound1
Venezuela/bolivar
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
2.1325
69.534
807.91
160.78
25.428
8.2706
2.3500
39.633
23.582
133.66
n.a.
2.1732
52.66
825.73
171.98
26.213
8.8614
2.5602
39.509
27.091
118.61
n.a.
2.2011
46.34
832.16
175.13
26.392
9.0716
2.6590
39.209
27.330
112.71
n.a.
2.2557
50.57
839.16
182.35
26.605
9.3364
2.8045
39.228
27.961
109.31
n.a.
2.2582
50.33
850.71
183.13
26.836
9.4135
2.8033
39.542
28.097
112.53
n.a.
2.2199
51.50
861.21
172.85
27.113
8.9946
2.5948
39.728
27.466
123.77
n.a.
2.2228
50.18
792.56
175.397
27.404
8.9895
2.6150
39.906
27.554
124.83
n.a.
116.57
125.34
138.19
149.24
152.83
158.43
158.14
149.56
149.92
1
2
3
4
5
6
7
MEMO
36 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 transfers.
Data in this table also appear in the Board's G.5 (405) release. For address, see
inside front cover.
A69
Guide to Tabular Presentation,
Statistical Releases, and Special Tables
GUIDE
TO TABULAR
PRESENTATION
Symbols and Abbreviations
c
e
p
r
*
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)
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
General Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed
issues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
STATISTICAL
obligations of the Treasury. "State and local government"
also includes municipalities, special districts, and other political subdivisions.
In some of the tables details do not add to totals because of
rounding.
RELEASES
List Published Semiannually, with Latest Bulletin Reference
Issue
Anticipated schedule of release dates for periodic releases
SPECIAL
Page
June 1985
A83
TABLES
Published Irregularly, with Latest Bulletin Reference
Assets
Assets
Assets
Assets
Assets
Assets
Assets
Assets
Terms
Terms
and liabilities of commercial banks, March 31, 1983
and liabilities of commercial banks, June 30, 1983
and liabilities of commercial banks, September 30, 1983
and liabilities of commercial banks, December 31, 1983
and liabilities of U.S. branches and agencies of foreign banks,
and liabilities of U.S. branches and agencies of foreign banks,
and liabilities of U.S. branches and agencies of foreign banks,
and liabilities of U.S. branches and agencies of foreign banks,
of lending at commercial banks, February 1985
of lending at commercial banks, May 1985
March 31, 1984
June 30, 1984
September 30, 1984
December 31, 1984
August
December
March
June
November
April
April
August
June
August
1983
1983
1984
1984
1984
1985
1985
1985
1985
1985
A70
A68
A68
A66
A4
A70
A74
A76
A70
A70
A70
4.23
Special Tables • August 1985
TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 6-10, 1985'
A. Commercial and Industrial Loans
Characteristics
Amount
of loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Weighted
average
maturity2
Days
Loan rate (percent)
Weighted
average
effective3
Standard
Interquartile
range5
Loans
made under
commitment
(percent)
Participation
loans
(percent)!
ALL BANKS
1 Overnight6
*
17,044,661
3,695
8.95
.53
8.60-9.14
63.7
9.3
2 One month and under
3 Fixed rate
4 Floating rate
7,421,894
5,705,205
1,716,689
412
437
346
16
16
15
9.68
9.57
10.07
.36
.48
.25
8.88-9.89
8.88-9.79
8.98-11.06
76.4
73.0
87.7
11.4
11.8
9.8
5 Over one month and under a year
6 Fixed rate
7 Floating rate
9,302,512
4,532,255
4,770,257
66
45
117
146
102
188
11.26
11.04
11.48
.44
.49
.43
9.52-12.62
9.35-12.49
10.92-12.62
64.2
52.6
75.2
8.3
8.6
8.0
4,368,947
837,252
3,531,695
152
211
142
*
*
11.09
9.60
11.44
.25
.69
.10
9.76-12.13
8.84-11.07
11.02-12.19
70.3
77.7
68.6
9.7
1.6
11.7
8 Demand7
9 Fixed rate
10 Floating rate
*
11 Total short term
38,138,014
198
44
9.90
.34
8.74-11.02
67.0
9.5
12 Fixed rate (thousands of dollars) .
13 1-24
14 25-49
15 50-99
16 100-499
17 500-999
18 1000 and over
27,924,391
660,021
312,283
319,243
678,332
314,672
25,639,840
230
7
33
72
166
674
7,695
21
106
119
120
65
48
15
9.43
14.12
13.38
13.27
12.83
10.39
9.11
.38
.28
.22
.33
.62
.25
.18
8.60-9.52
13.31-15.03
12.68-14.48
12.37-14.03
11.49-14.54
9.26-11.07
8.60-9.34
63.9
24.0
13.2
10.6
26.9
57.6
67.3
9.0
1.0
.1
.2
2.5
4.8
9.7
19 Floating rate (thousands of dollars).
20 1-24
21 25-49
22 50-99
23 100-499
24 500-999
25 1000 and over
10,213,623
347,875
378,884
637,308
1,838,317
729,940
6,281,299
144
9
33
66
182
670
3,898
138
154
142
174
186
148
119
11.19
13.12
12.73
12.70
12.22
11.54
10.49
.30
.34
.07
.26
.22
.11
.31
9.62-12.14
12.13-14.37
12.13-13.25
12.00-13.80
11.30-12.89
11.02-12.13
9.20-11.57
75.5
54.3
60.1
59.3
64.4
69.0
83.2
10.9
1.2
2.4
2.4
7.1
7.0
14.3
26 Total long term
4,775,340
134
55
11.03
.56
9.37-12.01
76.9
7.0
27 Fixed rate (thousands of dollars)
28 1-99
29 100-499
30 500-999
31 1000 and over
1,718,901
323,533
51,108
39,249
1,305,011
79
15
228
637
7,536
53
41
48
57
56
11.26
16.01
12.83
11.77
10.00
1.17
1.27
.95
.70
.69
9.22-11.73
14.37-15.17
11.30-13.88
10.92-13.24
9.18-11.20
75.0
3.6
52.7
52.3
94.2
5.2
.4
8.1
16.4
5.9
32 Floating rate (thousands of dollars)
33 1-99
34 100-499
35 500-999
36 1000 and over
3,056,438
248,881
372,075
140,768
2,294,715
220
22
180
638
5,887
56
45
51
43
58
10.90
13.13
12.19
11.51
10.42
.47
.32
.14
.34
.48
9.54-12.13
12.13-14.93
11.57-12.75
10.92-12.28
9.42-11.30
78.0
36.1
52.3
81.0
86.5
8.0
2.8
6.7
5.9
8.8
Months
Days
Loan rate (percent)
Effective
3
Prime rate9
8
Nominal
LOANS MADE BELOW PRIME 10
37
38
39
40
Overnight6
One month and under
Over one month and under a year
Demand7
*
16,675,173
6,426,340
3,897,293
1,265,545
10,463
3,935
448
465
15
113
28,264,351
1,929
25,093,778
3,170,573
2,209
964
44 Total long term
2,264,102
917
45 Fixed rate
46 Floating rate ..
937,474
1,326,628
434
4,309
41 Total short term
42 Fixed rate
43 Floating rate
*
8.89
9.26
9.52
9.13
8.52
8.87
9.17
8.78
10.50
10.50
10.62
10.69
63.6
80.1
75.6
76.1
9.5
12.2
9.1
8.3
21
9.07
8.70
10.53
69.6
10.0
15
76
9.05
9.29
8.67
8.91
10.52
10.61
66.9
90.4
9.6
13.3
53
9.49
9.19
10.56
89.8
9.4
41
61
9.46
9.50
9.30
9.11
10.62
10.51
90.7
89.2
6.2
11.6
Months
For notes see end of table.
Financial Markets
4.23
A71
Continued
A. Continued
Characteristics
Amount
of loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Weighted
average
maturity2
Days
Loan rate (percent)
Weighted
average
effective3
Standard
Interquartile
range5
Loans
made under
commitment
(percent)
Participation
loans
(percent)
48 LARGE BANKS
1 Overnight6
*
14,923,108
10,900
8.92
.01
8.60-9.14
64.3
10.6
2 One month and under
3 Fixed rate
4 Floating rate
5,793,764
4,503,939
1,289,825
2,337
3,961
961
15
15
12
9.43
9.36
9.69
.03
.04
.02
8.88-9.72
8.88-9.68
8.92-10.14
81.7
78.2
94.1
12.0
13.1
8.4
5 Over one month and under a year
6 Fixed rate
7 Floating rate
4,772,551
2,510,117
2,262,434
440
1,129
262
134
98
175
10.47
9.90
11.09
.15
.03
.17
9.35-11.35
9.30-10.89
10.20-12.13
79.6
70.4
89.8
8.2
10.9
5.1
1,665,659
438,751
1,226,908
302
522
262
*
10.91
9.55
11.39
.21
.18
.05
9.21-11.85
8.97-9.65
11.02-12.13
85.3
93.5
82.4
3.2
1.3
3.8
8 Demand7
9 Fixed rate
10 Floating rate
*
*
11 Total short term
27,155,082
1,343
29
9.42
.02
8.65-9.69
72.0
10.0
12 Fixed rate (thousands of dollars) .
13 1-24
14 25-49
15 50-99
16 100-499
17 500-999
18 1000 and over
22,181,208
15,450
13,741
20,357
105,300
145,638
21,880,722
4,004
9
34
65
216
655
8,890
15
107
106
77
65
45
15
9.13
13.19
12.63
12.31
11.05
10.12
9.11
.03
.13
.18
.01
.08
.06
.04
8.60-9.35
12.02-14.28
11.63-13.39
11.63-12.82
9.51-12.19
9.33-10.63
8.60-9.35
68.1
58.2
61.1
71.8
85.8
62.1
68.0
10.4
.0
1.0
.0
4.1
6.3
10.4
19 Floating rate (thousands of dollars).
20 1-24
21 25-49
22 50-99
23 100-499
24 500-999
25 1000 and over
4,973,874
65,351
83,010
141,562
556,694
301,706
3,825,550
339
11
34
66
191
653
4,229
110
169
167
167
148
141
100
10.73
12.71
12.45
12.21
11.86
11.49
10.38
.13
.05
.03
.04
.00
.08
.16
9.24-11.85
12.11-13.31
11.85-13.24
11.85-12.68
11.02-12.19
11.02-12.13
9.21-11.46
89.5
80.1
79.4
78.0
78.1
79.3
92.8
8.4
2.2
3.1
3.5
3.3
7.3
9.7
26 Total long term
3,375,443
1,145
55
10.33
.04
9.25-11.24
92.6
5.6
27 Fixed rate (thousands of dollars)
28 1-99
29 100-499
30 500-999
31 1000 and over
1,277,005
8,958
22,180
24,494
1,221,373
1,813
21
232
642
9,106
56
48
44
42
57
9.99
13.50
11.70
11.10
9.91
.21
.36
.48
.43
.25
9.18-11.20
12.47-14.37
11.07-12.19
9.90-12.01
9.16-11.20
97.1
36.8
77.5
74.0
98.3
4.7
10.7
15.2
19.6
4.1
32 Floating rate (thousands of dollars)
33 1-99
34 100-499
35 500-999
36 1000 and over
2,098,438
44,470
130,684
80,192
1,843,092
936
35
221
615
6,921
55
36
39
47
57
10.54
12.52
11.99
11.46
10.35
.16
.03
.07
.27
.15
9.47-11.30
11.85-13.24
11.30-12.47
10.92-12.19
9.42-11.15
89.9
70.2
81.0
89.9
91.0
6.2
4.3
7.9
1.7
6.3
Months
Loan rate (percent)
Days
Effective3
Prime rate9
Nominal8
LOANS MADE BELOW PRIME 10
37
38
39
40
Overnight6
One month and under
Over one month and under a year
Demand7
14,780,904
5,445,920
2,657,916
507,517
*
11,246
5,327
3,264
1,987
14
98
8.90
9.30
9.48
8.99
8.53
8.90
9.12
8.64
10.50
10.50
10.50
10.50
64.3
82.2
77.6
88.6
10.7
12.7
8.6
1.1
9.06
8.68
10.50
70.5
10.7
9.05
9.19
8.67
8.81
10.50
10.50
68.1
97.1
10.4
13.7
*
41 Total short terra
23,392,257
6,867
16
42 Fixed rate
43 Floating rate
21,408,289
1,983,968
7,609
3,347
13
45
44 Total long term
1,979,451
6,574
50
9.45
9.17
10.50
95.0
7.8
45 Fixed rate
46 Floating rate ..
863,487
1,115,964
5,672
7,496
41
57
9.28
9.58
9.15
9.18
10.50
10.50
97.7
92.9
5.7
9.4
Months
For notes see end of table.
A70
4.23
Special Tables • August 1985
TERMS OF LENDING AT COMMERCIAL B A N K S SURVEY of Loans Made, May 6-10, 1985' -Continued
A. Commercial and Industrial Loans—Continued
Characteristics
Amount
of loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Weighted
average
maturity2
Days
Loan rate (percent)
Weighted
average
effective3
Standard
Interquartile
range5
Loans
made under
commitment
(percent)
Participation
loans
(percent)
OTHER BANKS
1 Overnight6
2,121,553
654
*
9.14
.53
8.65-9.03
59.3
.5
2 One month and under
3 Fixed rate
4 Floating rate
1,628,130
1,201,266
426,864
105
101
118
21
20
22
10.57
10.33
11.24
.36
.48
.25
8.91-11.62
8.86-11.07
9.40-12.17
57.2
53.4
68.2
9.0
7.2
14.1
5 Over one month and under a year
6 Fixed rate
7 Floating rate
4,529,961
2,022,138
2,507,823
35
21
78
158
106
200
12.10
12.45
11.83
.41
.49
.40
10.92-13.73
10.26-14.30
10.92-13.24
48.0
30.5
62.0
8.4
5.7
10.6
8 Demand7
9 Fixed rate
10 Floating rate
2,703,288
398,501
2,304,787
116
128
114
*
*
11.20
9.65
11.47
.14
.67
.09
10.92-12.19
8.79-11.07
11.02-12.28
61.1
60.3
61.2
13.8
1.9
15.9
11 Total short term
*
10,982,932
64
91
11.08
.34
8.97-12.68
54.8
8.3
12 Fixed rate (thousands of dollars) .
13 1-24
14 25-49
15 50-99
16 100-499
17 500-999
18 1000 and over
5,743,183
644,571
298,542
298,885
573,032
169,033
3,759,118
50
7
33
72
159
691
4,316
45
106
120
121
65
51
18
10.59
14.14
13.41
13.33
13.16
10.62
9.14
.38
.25
.13
.33
.61
.25
.18
8.80-12.55
13.38-15.22
12.68-14.48
12.37-14.03
12.01-14.54
9.25-11.52
8.71-9.31
48.0
23.2
11.0
6.4
16.1
53.7
63.1
3.8
1.0
.1
.2
2.2
3.4
5.2
19 Floating rate (thousands of dollars).
20 1-24
21 25-49
22 50-99
23 100-499
24 500-999
25 1000 and over
5,239,749
282,524
295,874
495,746
1,281,622
428,234
2,455,749
93
9
33
66
178
682
3,473
174
150
135
176
202
152
169
11.62
13.22
12.81
12.84
12.38
11.57
10.66
.27
.33
.07
.25
.22
.08
.26
11.02-12.68
12.13-14.37
12.13-13.37
12.13-13.80
11.51-13.24
11.02-12.13
9.11-11.85
62.2
48.4
54.7
53.9
58.4
61.8
68.3
13.2
1.0
2.2
2.1
8.7
6.7
21.6
26 Total long term
1,399,897
43
54
12.71
.56
11.07-14.17
39.0
10.2
27 Fixed rate (thousands of dollars)
28 1-99
29 100-499
30 500-999
31 1000 and over
441,896
314,575
28,928
14,755
83,638
21
15
225
629
2,142
46
41
50
81
56
14.90
16.09
13.70
12.87
11.24
1.15
1.22
.82
.54
.64
12.54-14.65
14.37-15.50
12.13-17.23
12.13-14.17
10.45-12.54
11.1
2.7
33.7
16.4
34.2
6.6
.1
2.7
11.1
31.6
32 Floating rate (thousands of dollars)
33 1-99
34 100-499
35 500-999
36 1000 and over
958,000
204,410
241,391
60,576
451,623
82
21
164
670
3,657
57
47
57
37
65
11.70
13.26
12.30
11.58
10.69
.44
.32
.13
.22
.45
11.02-12.75
12.13-14.93
11.57-12.75
11.02-12.68
9.24-12.13
51.8
28.6
36.8
69.3
68.0
11.8
2.5
6.1
11.6
19.1
58.2
68.5
71.4
67.6
.6
9.6
10.1
13.2
Months
Loan rate (percent)
Prime rate9
Days
Effective
3
8
Nominal
LOANS MADE BELOW PRIME 10
Overnight6
One month and under
Over one7 month and under a year
Demand
1,894,269
980,419
1,239,378
758,029
6,783
1,605
157
307
18
144
41 Total short term
4,872,094
433
42 Fixed rate
43 Floating rate
3,685,489
1,186,605
431
440
44 Total long term
284,651
131
75
45 Fixed rate
46 Floating rate ..
73,987
210,664
37
1,325
48
84
37
38
39
40
*
8.85
9.08
9.62
9.23
8.48
8.71
9.27
8.87
10.50
10.53
10.86
10.82
48
9.15
8.79
10.65
65.1
6.8
26
155
9.06
9.45
8.69
9.09
10.60
10.79
60.5
79.3
5.0
12.5
9.74
9.33
10.95
53.8
20.3
11.56
9.10
11.01
12.05
10.56
8.3
69.7
12.1
23.2
Months
For notes see end of table.
8.75
Financial Markets
4.23
A73
Continued
B. Construction and Land Development Loans
Loan rate (percent)
Characteristics
Amount
of loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Weighted
average
maturity
(months)2
Weighted
average
effective3
Standard
error4
Loans
made under
commitment
(percent)
Interquartile
range5
Participation
loans
(percent)
ALL BANKS
1 Total
2,781,435
122
9
13.02
.53
11.02-14.74
69.7
6.8
2 Fixed rate (thousands of dollars) ..
3 1-24
4 25-49
5 50-99
6 100-499
7 500 and over
1,811,577
87,720
73,346
111,127
874,869
664,514
129
13
29
76
264
5,764
8
7
8
5
12
3
13.51
16.64
17.35
14.45
15.08
10.44
.88
.98
.96
.38
.57
10.54-14.94
12.76-24.75
13.31-24.74
14.45-14.54
14.09-16.08
10.13-10.81
74.6
60.6
95.0
59.8
66.1
87.7
6.9
.1
.4
.0
.5
18.2
8 Floating rate (thousands of dollars)
9 1-24
10 25-49
11 50-99
12 100-499
13 500 and over
969,859
63,156
56,003
43,550
221,927
585,222
110
12
33
70
221
1,763
11
8
10
10
13
11
12.11
14.16
13.56
12.57
12.29
11.65
.24
.34
.26
.12
.08
.20
11.57-12.75
13.03-14.93
12.68-14.75
12.13-13.24
11.85-12.68
10.47-12.68
60.7
38.5
48.7
78.8
70.9
59.0
6.6
.8
4.2
7.7
9.1
6.4
746,918
261,908
1,772,610
54
475
209
12
9
8
14.66
11.85
12.50
.65
.28
.52
12.91-14.94
10.80-12.68
10.47-14.09
44.6
34.0
85.6
3.9
11.7
7.3
By type of construction
14 Single family
15 Multifamily
16 Nonresidential
*
48 LARGE BANKS
1 Total
860,251
914
6
10.58
.29
10.13-11.85
96.9
14.4
2 Fixed rate (thousands of dollars) ..
3 1-24
4 25-49
5 50-99
6 100-499
7 500 and over
581,452
562
3,389
14
3
8
10.26
13.70
10.13-10.54
13.24-14.65
97.4
93.4
19.5
8.8
*
*
*
.44
.08
7,377
572,895
260
6,506
8
2
11.78
10.24
.14
.43
11.55-13.52
10.13-10.54
92.2
97.5
48.2
19.2
8 Floating rate (thousands of dollars)
9 1-24
10 25-49
11 50-99
12 100-499
13 500 and over
278,800
2,695
3,384
6,223
56,307
210,190
362
10
37
70
243
2,102
13
8
11
9
13
13
11.24
12.65
12.52
12.61
12.34
10.87
.13
.12
.10
.05
.06
.24
8.81-12.40
12.13-13.24
12.13-13.24
12.13-12.75
12.13-12.68
8.81-12.13
96.0
95.4
97.0
90.8
96.2
96.1
3.8
.0
20.5
6.3
5.2
3.1
By type of construction
14 Single family
15 Multifamily
16 Nonresidential
78,302
41,026
740,924
316
327
1,304
9
8
5
12.27
12.32
10.30
.16
.25
.13
11.85-12.68
12.13-12.57
8.81-10.81
94.2
93.5
97.4
29.7
60.8
10.2
1 Total
1,921,184
88
11
14.11
.58
12.55-14.94
57.5
3.4
2 Fixed rate (thousands of dollars) ..
3 1-24
4 25-49
5 50-99
6 100-499
7 500 and over
1,230,125
87,158
72,960
110,896
867,492
89
13
29
76
264
11
7
8
5
12
15.04
16.66
17.37
14.46
15.10
1.00
1.07
1.03
.33
.44
14.09-16.08
12.76-24.75
13.31-24.74
14.45-14.54
14.09-16.08
63.8
60.4
95.1
59.7
65.9
.9
.0
.3
.0
.0
*
*
8 Floating rate (thousands of dollars)
9 1-24
10 25-49
11 50-99
12 100-499
13 500 and over
691,059
60,461
52,619
37,328
165,620
375,032
86
12
32
70
215
1,616
11
8
10
10
12
11
12.47
14.23
13.63
12.56
12.28
12.09
.26
.36
.28
.13
.09
.18
11.58-13.24
13.10-14.93
12.68-14.75
12.13-13.24
11.85-12.68
11.46-12.68
46.4
35.9
45.6
76.8
62.3
38.2
7.8
.9
3.2
7.9
10.4
8.3
668,616
220,882
1,031,686
49
518
130
12
9
10
14.94
11.76
14.08
.68
.29
.63
13.31-15.87
10.47-12.68
12.68-16.08
38.7
22.9
77.1
.9
2.6
5.2
*
*
*
*
*
*
*
*
*
*
*
*
*
OTHER BANKS
By type of construction
14 Single family
15 Multifamily
16 Nonresidential .
For notes see end of table.
*Fewer than 10 sample loans.
*
*
*
*
*
*
A74
4.23
Special Tables • August 1985
TERMS OF LENDING AT COMMERCIAL B A N K S SURVEY of Loans Made, May 6-10, 1985'—Continued
C. Loans to Farmers 11
Size class of loans (thousands)
Characteristics
All sizes
$1-9
$10-24
$25-49
$250
and over
$100-249
$50-99
ALL BANKS
1 Amount of loans (thousands of dollars)
2 Number of loans
3 Weighted average maturity (months)2
4 Weighted average interest rate (percent)3
5 Standard error4 5
6 Interquartile range
7
8
9
10
11
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
Percentage of amount of loans
12 With floating rates
13 Made under commitment
14
15
16
17
18
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
1,313,837
72,552
8.5
175,526
48,544
7.4
203,050
13,730
8.3
183,051
5,242
7.9
164,258
2,537
8.7
277,549
2,118
11.5
310,404
382
6.6
13.07
.28
12.13-13.97
14.04
.20
13.42-14.76
13.30
.30
12.38-13.98
13.83
.55
13.31-14.33
13.25
.27
12.50-13.95
13.36
.46
12.23-13.%
11.57
.65
10.89-12.55
12.93
12.94
13.46
14.10
11.96
13.97
14.05
13.95
14.62
14.24
13.38
13.78
13.23
13.55
13.21
13.60
13.73
13.44
12.52
13.07
13.52
13.70
13.59
13.67
11.71
11.61
12.83
13.44
12.69
12.92
10.63
46.2
42.0
31.6
26.6
26.3
21.0
39.1
34.4
47.5
30.2
48.5
43.2
69.1
74.1
18.6
11.6
44.1
7.0
18.2
11.5
6.6
65.6
10.5
5.4
14.6
5.6
61.3
7.9
10.2
22.6
11.7
48.5
13.9
18.2
58.1
19.2
11.2
29.4
24.7
15.3
24.0
9.2
6.8
25.1
36.0
345,852
3,701
4.7
7,149
1,683
6.9
13,463
909
7.1
12,817
386
8.2
17,527
266
7.8
34,944
230
7.3
259,952
227
3.8
11.55
.23
10.92-12.55
12.96
.12
12.28-13.37
12.57
.17
11.82-13.24
12.58
.16
12.00-13.31
12.31
.14
11.62-13.10
12.11
.35
11.30-12.82
11.28
.33
10.58-12.14
11.84
11.69
12.25
13.32
10.78
12.49
13.15
12.88
13.18
13.24
12.32
12.75
12.52
13.19
12.59
11.87
12.47
12.67
12.37
12.36
12.14
11.67
12.16
11.73
11.61
12.08
12.58
12.21
12.19
10.50
73.6
79.6
80.6
73.5
83.1
77.3
88.3
78.7
93.3
88.2
91.7
82.9
68.4
79.0
27.5
16.2
20.1
.6
34.6
11.0
4.3
50.5
4.5
19.6
14.3
8.2
47.5
4.7
20.7
15.1
10.0
47.7
19.8
39.5
40.0
13.3
25.0
28.1
18.2
14.6
15.1
28.0
19.8
39.1
967,985
68,852
9.6
168,377
46,860
7.4
189,587
12,821
8.4
170,234
4,856
7.8
146,731
2,272
8.8
242,606
1,888
11.9
*
13.62
.14
12.75-14.17
14.09
.15
13.42-14.76
13.35
.24
12.40-13.98
13.92
.53
13.42-14.33
13.37
.23
12.50-13.95
13.53
.29
12.62-13.%
*
13.63
13.67
13.63
14.12
13.13
14.03
14.07
13.98
14.64
14.41
13.46
13.89
13.26
13.56
13.30
13.68
13.56
*
36.5
28.5
29.5
24.6
22.3
17.0
35.4
31.1
42.0
23.3
15.4
10.0
52.7
9.4
12.4
11.5
6.7
66.2
10.8
4.8
14.6
5.4
62.3
8.2
9.5
23.1
*
*
*
*
*
*
48.6
60.3
30.0
*
*
*
*
*
*
*
*
*
*
*
*
48 LARGE BANKS 11
1 Amount of loans (thousands of dollars)
2 Number of loans
3 Weighted average maturity (months)2
4 Weighted average4 interest rate (percent)3
5 Standard error
6 Interquartile range5
7
8
9
10
11
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
Percentage of amount of loans
12 With floating rates
13 Made under commitment
14
15
16
17
18
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
*
*
*
*
*
*
*
*
*
*
OTHER BANKS 11
1 Amount of loans (thousands of dollars)
2 Number of loans
3 Weighted average maturity (months)2
4 Weighted average interest rate (percent)3
5 Standard error4
6 Interquartile range5
7
8
9
10
11
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
Percentage of amount of loans
12 With floating rates
13 Made under commitment
14
15
16
17
18
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
For notes see following page.
*
13.50
*
*
8.7
*
*
13.61
*
*
*
*
*
*
*
*
*
*
*
13.85
*
42.3
37.4
*
*
*
*
*
*
*
Financial Markets
A75
NOTES TO TABLE 4.23
1. The survey of terms of bank lending to business collects data on gross loan
extensions made during the first full business week in the mid-month of each
quarter by a sample of 340 commercial banks of all sizes. The sample data are
blown up to estimate the lending terms at all insured commercial banks during that
week. The estimated terms of bank lending are not intended for use in collecting
the terms of loans extended over the entire quarter or residing in the portfolios of
those banks. Construction and land development loans include both unsecured
loans and loans secured by real estate. Thus, some of the construction and land
development loans would be reported on the statement of condition as real estate
loans and the remainder as business loans. The survey of terms of bank lending to
fanners covers about 250 banks selected to represent all sizes of banks. Mortgage
loans, purchased loans, foreign loans, and loans of less than $1,000 are excluded
from the survey.
As of September 30, 1984, average domestic assets of 48 large banks were $14.1
billion and assets of the smallest of these banks were $2.8 billion. For all insured
banks total domestic assets averaged $142 million.
2. The weighted average maturity is calculated only for loans with a stated date
of maturity (that is, loans payable on demand are excluded). In computing the
average, each loan is weighted by its dollar amount.
3. The approximate compounded annual interest rate on each loan is calculated
from survey data on the stated rate and other terms of the loan; then, in computing
the average of these approximate effective rates, each loan is weighted by its
dollar amount.
4. The chances are about two out of three that the average rate shown would
differ by less than this amount from the average rate that would be found by a
complete survey of lending at all banks.
5. The interquartile range shows the interest rate range that encompasses the
middle 50 percent of the total dollar amount of loans made.
6. Overnight loans are loans that mature on the following business day.
7. Demand loans have no stated date of maturity.
8. The approximate annual interest rate on each loan—without regard to
compounding—is calculated from survey data on the stated rate and other terms
of the loan; then in computing the average of these approximate nominal rates,
each loan is weighted by its dollar amount.
9. The prime rate reported by each bank is weighted by the volume of loans
extended and then averaged.
10. This survey provides data on gross loan extensions made during one week
of each quarter. The proportion of these loan extensions that is made at rates
below prime may vary substantially from the proportion of such loans outstanding
in bank loan portfolios.
11. Among banks reporting loans to farmers, most "large banks" had over $500
million in total assets, and most "other banks" had total assets below $500
million.
A74
4.30
Special Tables • August 1985
ASSETS A N D LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1984'
Millions of dollars
All states2
New York
Item
Total
1 Total assets5
2 Cash and due from depository institutions
3 Currency and coin (U.S. and foreign)
4 Balances with Federal Reserve Banks
5 Balances with other central banks
6 Demand balances with commercial banks in United
States
7 All other balances with depository institutions in
United States and with banks in foreign
countries
8
Time and savings balances with commercial
banks in United States
9
Balances with other depository institutions in
United States
10
Balances with banks in foreign countries
11
Foreign branches of U.S. banks
12
Other banks in foreign countries
13 Cash items in process of collection
14 Total securities, loans, and lease financing receivables
15 Total securities, book value
16 U.S. Treasury
17 Obligations of other U.S. government agencies and
corporations
18 Obligations of states and political subdivisions in
United States
19 Other bonds, notes, debentures, and corporate stock ..
20 Federal funds sold and securities purchased under
agreements to resell
Branches3
Agencies
Branches 3
Agencies
Other states2
California,
total 4
Illinois,
branches
Branches
Agencies
272,443
215,826
56,617
191,816
5,880
46,292
14,159
6,547
7,749
62,647
30
1,085
37
56,862
28
1,023
36
5,785
2
62
2
53,039
22
916
35
332
1
26
1
5,582
2
44
0
2,926
3
45
1
309
2
42
0
459
1
12
1
1,462
1,247
215
1,157
81
96
50
23
55
59,830
54,332
5,498
50,729
220
5,436
2,819
238
388
30,279
26,942
3,337
24,873
188
3,125
1,663
151
279
92
29,459
2,019
27,440
202
63
27,328
1,939
25,389
196
29
2,132
81
2,051
6
63
25,793
1,893
23,900
181
0
33
6
27
2
4
2,307
66
2,241
5
0
1,156
46
1,111
8
0
87
0
87
3
26
84
9
75
2
151,079
115,235
35,844
99,748
4,522
27,978
9,667
3,575
5,589
11,597
4,705
10,111
4,423
1,486
283
9,534
4,175
163
146
1,300
60
405
207
35
17
158
100
587
572
15
557
0
15
0
12
2
77
6,228
68
5,049
10
1,179
54
4,748
0
17
1
1,225
13
186
1
5
9
47
8,983
7,837
1,146
7,389
639
506
287
95
67
21
22
By holder
Commercial banks in United States
Others
7,577
1,407
6,706
1,131
870
276
6,277
1,112
374
265
496
10
269
19
95
0
66
1
23
24
25
26
By type
One-day maturity or continuing contract
Securities purchased under agreements to resell
Other
Other securities purchased under agreements to
resell
8,184
90
8,095
7,042
60
6,982
1,143
30
1,113
6,594
60
6,534
639
16
623
503
0
503
287
0
287
95
0
95
66
14
53
799
795
4
795
0
3
0
0
1
139,632
150
139,483
105,229
104
105,124
34,404
46
34,358
90,306
92
90,214
4,360
2
4,358
26,722
44
26,678
9,268
6
9,262
3,543
3
3,540
5,433
2
5,431
5,085
50,960
24,902
21,278
3,624
22,563
862
21,701
3,494
2,444
38,732
17,639
14,331
3,309
17,942
625
17,317
3,150
2,641
12,227
7,263
6,947
315
4,621
237
4,385
343
1,562
34,283
15,608
12,459
3,149
16,554
593
15,961
2,121
23
903
179
179
0
675
29
645
50
1,805
10,958
7,264
6,927
337
3,391
166
3,225
303
336
3,446
1,468
1,421
48
986
27
959
992
264
610
272
216
56
337
5
332
1
1,095
759
110
77
33
620
41
579
29
39 Loans for purchasing or carrying securities
40 Commercial and industrial loans
41 U.S. addressees (domicile)
42 Non-U.S. addressees (domicile)
43 Loans to individuals for household, family, and other
personal expenditures
44 All other loans
45 Loans to foreign governments and official
institutions
46 Other
2,288
64,505
41,854
22,651
2,218
49,273
31,285
17,989
70
15,232
10,569
4,663
2,143
40,585
24,098
16,487
30
1,683
252
1,431
115
11,951
9,026
2,925
0
4,973
4,368
604
0
2,463
1,750
713
0
2,850
2,358
492
276
16,519
246
12,315
30
4,204
201
11,532
3
1,718
25
1,867
8
505
28
178
10
719
15,667
852
11,595
721
4,073
132
10,912
621
1,705
13
1,771
97
473
33
128
50
679
40
47 Lease financing receivables
48 All other assets
49 Customers' liability on acceptances outstanding
50
U.S. addressees (domicile)
51
Non-U.S. addressees (domicile)
52 Net due from related banking institutions 6
53 Other
0
49,734
19,578
12,234
7,344
23,273
6,883
0
35,892
14,820
8,015
6,805
15,614
5,457
0
13,842
4,757
4,218
539
7,658
1,426
0
31,639
14,380
7,769
6,611
12,362
4,897
0
387
55
7
48
150
182
0
12,226
4,692
4,277
415
6,395
1,139
0
1,279
147
130
17
826
306
0
2,568
212
36
176
2,229
128
0
1,634
92
14
77
1,310
232
27 Total loans, gross
28 LESS: Unearned income on loans
29 EQUALS: Loans, net
Total loans, gross, by category
30 Real estate loans
31 Loans to financial institutions
32 Commercial banks in United States
33
U.S. branches and agencies of other foreign banks ..
34
Other commercial banks
35 Banks in foreign countries
36
Foreign branches of U.S. banks
37
Other
38 Other financial institutions
U.S. Branches and Agencies
4.30
All
Continued
All states2
New York
Item
Total
Branches3
Agencies
Branches3
Agencies
Other states2
California,
total4
Illinois,
branches
Branches
Agencies
54 Total liabilities5
272,443
215,826
56,617
191,816
5,880
46,292
14,159
6,547
7,749
55 Total deposits and credit balances
56 Individuals, partnerships, and corporations
57
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
58
59 U.S. government, states, and political subdivisions
in United States
60 All other
61
Foreign governments and official institutions . . . .
Commercial banks in United States
62
U.S. branches and agencies of other foreign
63
banks
64
Other commercial banks in United States
65
Banks in foreign countries
66
Foreign branches of U.S. banks
Other banks in foreign countries
67
68
Certified and officers' checks, travelers checks,
and letters of credit sold for cash
147,641
45,230
25,010
20,220
127,254
41,685
24,945
16,741
20,387
3,544
65
3,480
116,804
35,550
19,724
15,826
1,717
79
10
68
17,379
1,628
369
1,259
4,825
1,918
1,696
222
3,704
3,291
3,180
110
3,212
2,765
30
2,735
109
102,303
7,101
41,304
109
85,460
6,772
31,658
0
16,843
328
9,646
26
81,228
6,571
29,598
0
1,639
169
755
6
15,746
198
9,251
12
2,894
39
1,374
65
348
7
189
0
448
118
137
31,060
10,244
53,341
7,030
46,311
23,177
8,481
46,524
5,175
41,348
7,883
1,763
6,817
1,855
4,963
21,496
8,102
44,581
4,749
39,831
377
377
696
264
432
7,878
1,373
6,271
1,670
4,601
1,192
182
1,470
312
1,158
74
115
148
18
130
42
96
176
16
160
557
506
51
479
19
26
12
4
17
69 Demand deposits
70 Individuals, partnerships, and corporations
71
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
72
73 U.S. government, states, and political subdivisions
in United States
74 All other
Foreign governments and official institutions . . . .
75
Commercial banks in United States
76
77
U.S. branches and agencies of other foreign
banks
Other commercial banks in United States
78
79
Banks in foreign countries
80
Certified and officers' checks, travelers checks,
and letters of credit sold for cash
3,577
1,972
1,199
773
3,291
1,821
1,199
622
286
151
0
151
2,984
1,563
967
596
19
0
0
0
101
66
32
34
147
129
125
4
95
80
76
5
230
134
0
134
7
1,597
260
139
7
1,462
256
90
0
135
4
50
6
1,416
247
86
0
19
0
0
0
35
3
1
1
17
2
1
0
14
7
2
0
96
1
50
6
133
641
6
84
611
0
50
30
6
80
605
0
0
0
0
1
5
0
1
3
0
2
0
0
50
28
557
506
51
479
19
26
12
4
17
81 Time deposits
82 Individuals, partnerships, and corporations
83
U.S. addressees (domicile)
84
Non-U.S. addressees (domicile)
85 U.S. government, states, and political subdivisions
in United States
86 All other
Foreign governments and official institutions . . . .
87
Commercial banks in United States
88
89
U.S. branches and agencies of other foreign
banks
90
Other commercial banks in United States
91
Banks in foreign countries
142,756
42,138
23,157
18,982
122,914
38,933
23,157
15,777
19,842
3,205
0
3,205
112,998
33,284
18,366
14,918
1,595
43
0
43
17,170
1,456
281
1,175
4,594
1,706
1,491
215
3,518
3,119
3,019
100
2,882
2,531
0
2,531
101
100,516
6,800
41,143
101
83,879
6,502
31,560
0
16,637
299
9,584
20
79,694
6,309
29,503
0
1,552
145
743
5
15,708
193
9,249
11
2,877
37
1,374
65
334
0
187
0
351
117
88
31,052
10,091
52,572
23,170
8,390
45,818
7,882
1,701
6,754
21,489
8,014
43,881
377
365
665
7,877
1,372
6,266
1,192
181
1,467
74
113
147
42
46
146
92 Savings deposits
93 Individuals, partnerships, and corporations
94
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
95
96 U.S. government, states, and political subdivisions
in United States
97 All other
907
906
517
389
813
812
517
295
94
94
0
94
587
587
321
265
0
0
0
0
78
78
30
48
83
83
80
3
91
91
85
5
68
68
0
68
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
98 Credit balances
99 Individuals, partnerships, and corporations
U.S. addressees (domicile)
100
101
Non-U.S. addressees (domicile)
102 U.S. government, states, and political subdivisions
in United States
103 All other
104
Foreign governments and official institutions . . . .
105
Commercial banks in United States
106
U.S. branches and agencies of other foreign
banks
Other commercial banks in United States
107
108
Banks in foreign countries
402
213
137
76
237
118
72
47
165
95
65
30
235
117
70
47
103
36
10
26
30
28
26
2
0
0
0
0
1
1
1
0
33
32
30
2
0
190
40
22
0
119
15
9
0
71
25
13
0
119
15
9
0
67
24
12
0
2
1
1
0
0
0
0
0
0
0
0
0
1
0
0
2
19
128
2
7
95
1
12
33
2
7
95
0
12
31
1
0
1
0
0
0
0
0
0
0
0
1
For notes see end of table.
A74
4.30
Special Tables • August 1985
ASSETS A N D LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1984'—Continued
All states2
New York
Item
110
111
112
113
114
115
Federal funds purchased and securities sold under
agreements to repurchase
By holder
Commercial banks in United States
Others
By type
One-day maturity or continuing contract
Securities sold under agreements to repurchase ..
Other
Other securities sold under agreements to
repurchase
Illinois,
branches
Branches3
Agencies
Branches3
Agencies
21,659
15,778
5,881
14,962
540
5,326
18,491
3,168
13,017
2,760
5,474
407
12,294
2,667
213
327
20,886
2,159
18,727
15,130
2,136
12,994
5,756
23
5,733
14,390
2,120
12,270
418
7
410
Total
109
Other states2
California,
total4
Branches
Agencies
442
257
131
5,241
85
375
66
257
0
109
22
5,314
26
5,289
376
0
376
257
0
257
131
7
125
772
648
125
572
122
12
66
0
0
116
117
118
119
120
121
122
Other liabilities for borrowed money
Owed to banks
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Owed to others
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
39,512
37,081
35,729
1,352
2,431
2,163
268
24,126
21,853
20,769
1,084
2,273
2,085
188
15,386
15,228
14,960
268
158
78
80
21,362
19,335
18,329
1,006
2,028
1,840
188
1,939
1,881
1,835
46
58
13
45
13,072
12,972
12,876
96
100
65
35
1,604
1,359
1,337
22
245
245
0
685
685
652
34
0
0
0
849
849
701
148
0
0
0
123
124
125
126
All other liabilities
Acceptances executed and outstanding6
Net due to related banking institutions
Other
63,631
21,970
36,777
4,885
48,668
16,972
27,497
4,199
14,963
4,997
9,280
686
38,688
16,489
18,358
3,841
1,683
54
1,522
107
10,515
4,953
4,999
562
7,289
172
6,943
174
1,900
209
1,585
105
3,556
92
3,369
96
127
128
Time deposits of $100,000 or more
Certificates of deposit (CDs) in denominations of
$100,000 or more
Other
Savings deposits authorized for automatic transfer and
NOW accounts
Money market time certificates of $10,000 and less
than $100,000 with original maturities of 26 weeks
Time certificates of deposit in denominations of
$100,000 or more with remaining maturity of
more than 12 months
106,128
88,378
17,750
78,750
52
16,874
4,532
3,395
2,525
37,160
68,967
34,770
53,608
2,391
15,359
29,154
49,596
0
52
1,347
15,527
1,770
2,762
3,091
304
1,798
727
86
54
32
33
0
13
8
8
25
0
0
0
0
0
0
0
0
0
11,044
10,875
169
8,940
0
221
461
1,285
138
Acceptances refinanced with a U.S.-chartered bank ..
Statutory or regulatory asset pledge requirement
Statutory or regulatory asset maintenance requirement
Commercial letters of credit
Standby letters of credit, total
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Standby letters of credit conveyed to others through
participations (included in total standby letters of
credit)
3,945
58,605
12,075
8,587
27,282
23,789
3,493
2,657
57,490
11,835
6,128
23,779
20,700
3,079
1,288
1,115
240
2,459
3,503
3,089
414
2,121
49,501
5,875
5,576
20,252
17,405
2,846
97
1,038
0
135
92
12
80
1,326
146
514
2,239
2,930
2,707
222
0
7,872
2,560
191
2,291
2,125
166
401
24
2,889
218
626
597
29
1
23
236
229
1,092
943
149
4,223
3,863
360
3,464
0
382
215
64
97
MEMO
129
130
131
132
133
134
135
136
137
138
139
140
Holdings of commercial paper included in total gross
loans
142 Holdings of acceptances included in total commercial
and industrial loans
143 Immediately available funds with a maturity greater
than one day (included in other liabilities for borrowed money)
29,218
18,396
144
145
146
147
148
149
150
151
152
Gross due from related banking institutions6
U.S. addressees (domicile)
Branches and agencies in the United States
In the same state as reporter
In other states
U.S. banking subsidiaries7
Non-U.S. addressees (domicile)
Head office and non-U.S. branches and agencies.
Non-U.S. banking companies and offices
98,902
26,600
25,824
2,571
23,253
776
72,302
70,534
1,767
79,505
19,393
18,850
1,749
17,101
543
60,112
58,694
1,419
153
154
155
156
157
158
159
160
161
Gross due to related banking institutions6
U.S. addressees (domicile)
Branches and agencies in the United States
In the same state as reporter
In other states
U.S. banking subsidiaries7
Non-U.S. addressees (domicile)
Head office and non-U.S. branches and agencies.
Non-U.S. banking companies and offices
112,406
26,611
26,164
2,517
23,647
447
85,795
83,110
2,685
91,388
18,815
18,478
1,672
16,806
337
72,573
70,184
2,389
21,018
7,796
7,686
845
6,841
110
13,222
12,926
296
141
720
433
286
344
2
277
82
0
14
4,344
3,092
1,251
2,979
56
1,209
85
7
8
10,823
16,016
1,560
9,541
1,501
498
103
19,396
7,207
6,974
822
6,152
234
12,189
11,841
349
71,441
14,631
14,109
1,729
12,380
522
56,810
55,411
1,399
933
84
74
1
73
10
849
819
30
17,013
6,529
6,307
791
5,516
222
10,483
10,318
165
3,668
1,339
1,325
0
1,325
14
2,330
2,312
18
3,424
2,973
2,971
2
2,969
2
451
451
0
2,423
1,043
1,037
47
990
6
1,379
1,224
156
77,437
11,735
11,500
1,653
9,847
235
65,701
63,352
2,349
2,304
20
20
1
19
0
2,284
2,134
150
15,616
4,936
4,869
813
4,056
67
10,681
10,549
131
9,786
4,406
4,322
0
4,322
84
5,380
5,370
10
2,781
2,010
2,000
2
1,998
10
771
771
0
4,482
3,504
3,454
49
3,405
51
977
934
43
U.S. Branches and Agencies
4.30
A79
Continued
All states2
New York
Item
Branches3
Agencies
Branches3
Agencies
267,653
59,929
211,540
54,276
56,113
5,654
188,059
50,679
5,848
307
45,862
5,413
8,217
134,512
22,318
142,313
35,050
7,137
102,202
17,673
122,247
32,742
1,080
32,310
4,645
20,066
2,308
6,823
87,529
16,157
112,138
27,157
668
4,207
675
1,669
0
19,976
39,434
15,207
24,440
4,769
14,995
14,297
21,874
462
292
170
187
Total
Average for 30 calendar days (or calendar month)
ending with report date
162 Total assets
163 Cash and due from depository institutions
164 Federal funds sold and securities purchased under
agreements to resell
165 Total loans
166 Loans to banks in foreign countries
167 Total deposits and credit balances
168 Time CDs in denominations of $100,000 or more
169 Federal funds purchased and securities sold under
agreements to repurchase
170 Other liabilities for borrowed money
171 Number of reports filed8
1. Data are aggregates of categories reported on the quarterly form FFIEC 002,
"Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign
Banks." This form was first used for reporting data as of June 30, 1980. From
November 1972 through May 1980, U.S. branches and agencies of foreign banks
had filed a monthly FR 886a report. Aggregate data from that report were
available through the Federal Reserve statistical release G.ll, last issued on
July 10, 1980. Data in this table and in the G.ll tables are not strictly comparable
because of differences in reporting panels and in definitions of balance sheet
items.
2. Includes the District of Columbia.
3. includes all offices that have the power to accept deposits from U.S.
residents, including any such offices that are considered agencies under state law.
4. Agencies account for virtually all of the assets and liabilities reported in
California.
5. Total assets and total liabilities include net balances, if any, due from or due
to related banking institutions in the United States and in foreign countries (see
California,
total4
Other states2
Illinois,
branches
Branches
Agencies
13,464
2,769
6,560
302
7,861
459
402
25,753
3,566
17,011
1,335
192
8,871
990
4,724
1,722
55
3,547
344
3,630
3,118
77
4,605
587
3,141
1,719
422
1,885
4,370
12,833
510
1,467
273
654
104
722
26
119
45
32
53
footnote 6). On the former monthly branch and agency report, available through
the G. 11 statistical release, gross balances were included in total assets and total
liabilities. Therefore, total asset and total liability figures in this table are not
comparable to those in the G. 11 tables.
6. "Related banking institutions" includes the foreign head office and other
U.S. and foreign branches and agencies of the bank, the bank's parent holding
company, and majority-owned banking subsidiaries of the bank and of its parent
holding company (including subsidiaries owned both directly and indirectly).
Gross amounts due from and due to related banking institutions are shown as
memo items.
7. "U.S. banking subsidiaries" refers to U.S. banking subsidiaries majorityowned by the foreign bank and by related foreign banks and includes U.S. offices
of U.S.-chartered commercial banks, of Edge Act and Agreement corporations,
and of New York State (Article XII) investment companies.
8. In some cases two or more offices of a foreign bank within the same
metropolitan area file a consolidated report.
A80
Federal Reserve Board of Governors
P A U L A . VOLCKER,
PRESTON M A R T I N ,
Chairman
Vice Chairman
OFFICE OF BOARD
MEMBERS
H E N R Y C . WALLICH
J. CHARLES PARTEE
OFFICE OF STAFF DIRECTOR
MONETARY AND FINANCIAL
FOR
POLICY
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
ANTHONY F. COLE, Special Assistant to the Board
NAOMI P. SALUS, Special Assistant to the Board
STANLEY J. SIGEL, Assistant
NORMAND R.V. BERNARD, Special Assistant
LEGAL
DIVISION
DIVISION
MICHAEL BRADFIELD, General
Counsel
J. VIRGIL MATTINGLY, JR., Deputy General Counsel
RICHARD M. ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
RICKI TIGERT, Assistant General Counsel
MARYELLEN A. BROWN, Assistant to the General Counsel
Director
DONALD L. KOHN, Deputy Staff
OF RESEARCH
JAMES L . KICHLINE,
Director
to the
AND
Board
STATISTICS
Director
EDWARD C. ETTIN, Deputy
MICHAEL J. PRELL, Deputy
JOSEPH S. ZEISEL, Deputy
JARED J. ENZLER, Associate
Director
Director
Director
Director
DAVID E. LINDSEY, Associate
Director
ELEANOR J. STOCK WELL, Associate
OFFICE OF THE
WILLIAM W . WILES,
Director
THOMAS D. SIMPSON, Deputy Associate
LAWRENCE SLIFMAN, Deputy Associate
HELMUT F. WENDEL, Deputy Associate
SECRETARY
Secretary
BARBARA R. LOWREY, Associate
Secretary
JAMES MCAFEE, Associate
Secretary
to the Board
MARTHA BETHEA, Assistant
ROBERT M . FISHER, Assistant
Director
Director
Director
Director
Director
DAVID B. HUMPHREY, Assistant
Director
SUSAN J. LEPPER, Assistant
Director
RICHARD D . PORTER, Assistant
Director
PETER A. TINSLEY, Assistant
DIVISION OF
CONSUMER
AND COMMUNITY
AFFAIRS
Director
LEVON H . GARABEDIAN, Assistant
Director
(Administration)
GRIFFITH L . GARWOOD,
Director
JERAULD C. KLUCKMAN, Associate
Director
GLENN E. LONEY, Assistant
Director
DOLORES S. SMITH, Assistant
Director
DIVISION
OF INTERNATIONAL
E D W I N M . TRUMAN,
DIVISION OF BANKING
SUPERVISION AND
REGULATION
WILLIAM TAYLOR,
Director
THOMAS E. CIMENO, JR., Deputy
Director1
FREDERICK R. DAHL, Associate
Director
DON E. KLINE, Associate
Director
FREDERICK M. STRUBLE, Associate
Director
HERBERT A . BIERN, Assistant
Director
ANTHONY CORNYN, Assistant
Director
ROBERT S . PLOTKIN, Assistant
Director
STEPHEN C. SCHEMERING, Assistant
Director
RICHARD SPILLENKOTHEN, Assistant
Director
SIDNEY M . SUSSAN, Assistant
Director
LAURA M. HOMER, Securities
Credit Officer
1. On loan from the Federal Reserve Bank of Boston.
FINANCE
Director
LARRY J. PROMISEL, Senior Associate
Director
CHARLES J. SIEGMAN, Senior Associate
Director
DALE W. HENDERSON, Associate
Director
ROBERT F. GEMMILL, Staff
Adviser
PETER HOOPER III, Assistant
Director
DAVID H . HOWARD, Assistant
Director
RALPH W. SMITH, JR., Assistant
Director
A81
and Official Staff
MARTHA R . SEGER
E M M E T T J. RICE
L Y L E E . GRAMLEY
OFFICE OF
STAFF DIRECTOR
FOR
S. DAVID FROST, Staff
MANAGEMENT
Director
EDWARD T. MULRENIN, Assistant Staff Director
CHARLES L. HAMPTON, Senior Technical Adviser
PORTIA W. THOMPSON, Equal Employment
Opportunity
Programs Officer
OFFICE OF STAFF DIRECTOR
FOR
FEDERAL RESERVE BANK
ACTIVITIES
THEODORE E. ALLISON, Staff Director
JOSEPH W. DANIELS, SR., Adviser, Equal
Opportunity Programs, Federal Reserve
DIVISION OF FEDERAL
BANK
OPERATIONS
DIVISION
OF COMPUTING
RESERVE
SERVICES
C L Y D E H . FARNSWORTH, J R . ,
BRUCE M . BEARDSLEY,
Director
ELLIOTT C. MCENTEE, Associate
THOMAS C. JUDD, Assistant
Director
ELIZABETH B. RIGGS, Assistant
Director
ROBERT J. ZEMEL, Assistant
Director
DIVISION
OF INFORMATION
SERVICES
DAVID L. ROBINSON, Associate
Director
FLORENCE M . Y O U N G ,
STEPHEN R. MALPHRUS, Assistant
Director
RICHARD J. MANASSERI, Assistant
Director
WILLIAM C. SCHNEIDER, JR., Assistant
Director
DIVISION
OF
PERSONNEL
DAVID L . SHANNON,
Director
JOHN R. WEIS, Assistant
Director
CHARLES W . WOOD, Assistant
OFFICE OF THE
Director
CONTROLLER
GEORGE E . LIVINGSTON,
Controller
BRENT L. BO WEN, Assistant
DIVISION
OF SUPPORT
ROBERT E . FRAZIER,
Controller
SERVICES
Director
WALTER W . KREIMANN, Associate
Director
GEORGE M. LOPEZ, Assistant
Director
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
WILLIAM R . JONES,
Employment
System
Adviser
Director
82
Federal Reserve Bulletin • August 1985
Federal Open Market Committee
FEDERAL
OPEN MARKET
P A U L A . VOLCKER,
COMMITTEE
E. GERALD CORRIGAN, Vice
Chairman
JOHN J. BALLES
ROBERT P . BLACK
ROBERT P . FORRESTAL
L Y L E E . GRAMLEY
SILAS K E E H N
PRESTON MARTIN
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
JOSEPH R. BISIGNANO, Associate
(International)
Economist
J. CHARLES PARTEE
EMMETT J. RICE
MARTHA R . SEGER
HENRY C . WALLICH
J. ALFRED BROADDUS, Associate
Economist
RICHARD G. DAVIS, Associate
Economist
DONALD L . KOHN, Associate
Economist
DAVID E . LINDSEY, Associate
Economist
MICHAEL J. PRELL, Associate
Economist
KARL A . SCHELD, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
SHEILA L . TSCHINKEL, 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
L E W I S T . PRESTON,
President
PHILIP F. SEARLE, Vice
President
WILLIAM H . B O W E N , E . PETER GILLETTE, AND N . BERNE H A R T ,
ROBERT L. NEWELL, First District
LEWIS T. PRESTON, Second District
GEORGE A. BUTLER, Third District
JULIEN L. MCCALL, Fourth District
JOHN G. MEDLIN, JR., Fifth District
PHILIP F. SEARLE, Sixth District
Directors
HAL C. KUEHL, Seventh District
WILLIAM H. BOWEN, Eighth District
E. PETER GILLETTE, JR., Ninth District
N. BERNE HART, Tenth District
NAT S. ROGERS, Eleventh District
G . ROBERT TRUEX, JR., T w e l f t h District
HERBERT V . PROCHNOW,
WILLIAM J. KORSVIK, Associate
Secretary
Secretary
Chairman
A83
and Advisory Councils
CONSUMER
ADVISORY
COUNCIL
TIMOTHY D. MARRINAN, Minneapolis, Minnesota, Chairman
THOMAS L. CLARK, JR., N e w York, New York, Vice Chairman
RACHEL G . BRATT, M e d f o r d , M a s s a c h u s e t t s
JONATHAN B R O W N , W a s h i n g t o n , D . C .
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
THERESA FAITH CUMMINGS, S p r i n g f i e l d , I l l i n o i s
STEVEN M. GEARY, Jefferson City, Missouri
RICHARD M. HALLIBURTON, Kansas City, Missouri
CHARLES C . H O L T , A u s t i n , T e x a s
EDWARD N . LANGE, Seattle, W a s h i n g t o n
K E N N E T H V . LARKIN, B e r k e l e y , C a l i f o r n i a
FRED S . M C C H E S N E Y , A t l a n t a , G e o r g i a
FREDERICK H . MILLER, N o r m a n , O k l a h o m a
MARGARET M . M U R P H Y , C o l u m b i a , M a r y l a n d
ROBERT F . M U R P H Y , D e t r o i t , M i c h i g a n
HELEN NELSON, Mill Valley, California
THRIFT INSTITUTIONS
ADVISORY
LAWRENCE S . OKINAGA, H o n o l u l u , H a w a i i
JOSEPH L . PERKOWSKI, C e n t e r v i l l e , M i n n e s o t a
ELVA Q U U A N O , S a n A n t o n i o , T e x a s
BRENDA L . SCHNEIDER, D e t r o i t , M i c h i g a n
PAULA A . SLIMAK, C l e v e l a n d , O h i o
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
TED L. SPURLOCK, N e w York, New York
MEL STILLER, Boston, Massachusetts
CHRISTOPHER J. SUMNER, Salt Lake City, Utah
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
MERVIN WINSTON, M i n n e a p o l i s , M i n n e s o t a
MICHAEL ZOROYA, S t . L o u i s , M i s s o u r i
COUNCIL
THOMAS R . BOMAR, Miami, Florida, President
RICHARD H. D E I H L , LOS Angeles, California, Vice President
M . T O D D COOKE, P h i l a d e l p h i a , P e n n s y l v a n i a
ELLIOTT G. CARR, Harwich Port, Massachusetts
JOHN A. HARDIN, Rock Hill, South Carolina
FRANCES LESNIESKI, East Lansing, Michigan
J. MICHAEL CORNWALL, D a l l a s , T e x a s
HAROLD W . GREENWOOD, JR., M i n n e a p o l i s , M i n n e s o t a
JOHN T . MORGAN, N e w Y o r k , N e w Y o r k
SARAH R . WALLACE, N e w a r k , O h i o
MICHAEL R . W I S E , D e n v e r , C o l o r a d o
A84
Federal Reserve Board Publications
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THE FEDERAL RESERVE
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AND
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BANKING A N D MONETARY STATISTICS. 1 9 1 4 - 1 9 4 1 . ( R e p r i n t
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A N N U A L PERCENTAGE RATE TABLES ( T r u t h in
Lending—
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pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each
volume $2.25; 10 or more of same volume to one
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FEDERAL RESERVE MEASURES OF CAPACITY A N D CAPACITY
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MOVEMENT TO 1978:
A
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1976.
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A N N U A L STATISTICAL DIGEST
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1980.
1981. 241 pp. $10.00 per copy.
1981.
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1982.
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1983.
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A
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REMARKS BY CHAIRMAN P A U L A . VOLCKER, AT X I I I AMERICAN-GERMAN B I E N N I A L CONFERENCE, M a r c h 1 9 8 5
93 pp. $2.50 each.
A85
CONSUMER EDUCATION
PAMPHLETS
Short pamphlets suitable for classroom use. Multiple
available without charge.
copies
130. EFFECTS OF EXCHANGE RATE VARIABILITY ON INTERNATIONAL TRADE A N D OTHER ECONOMIC VARIABLES: A REVIEW OF THE LITERATURE, b y V i c t o r i a S .
Farrell with Dean A. DeRosa and T. Ashby McCown.
January 1984. 21 pp.
Alice in Debitland
Consumer Handbook on Adjustable Rate Mortgages
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
Truth in Leasing
U.S. Currency
What Truth in Lending Means to You
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, A N D INTEREST RATES: A N EMPIRICAL IN-
VESTIGATION, by Bonnie E. Loopesko. November
1 9 8 3 . 2 0 pp.
1 3 4 . SMALL EMPIRICAL MODELS OF EXCHANGE MARKET
INTERVENTION: A REVIEW OF THE LITERATURE, b y
Ralph W. Tryon. October 1983. 14 pp.
135. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET
INTERVENTION: APPLICATIONS TO C A N A D A , GERMA-
NY, AND JAPAN, by Deborah J. Danker, Richard A.
Haas, Dale W. Henderson, Steven A. Symansky, and
Ralph W. Tryon. April 1985. 27 pp.
136. T H E EFFECTS OF FISCAL POLICY ON THE U . S . ECONO-
MY, by Darrell Cohen and Peter B. Clark. January
1 9 8 4 . 16 pp.
137. T H E IMPLICATIONS FOR B A N K MERGER POLICY OF
FINANCIAL DEREGULATION, INTERSTATE BANKING,
A N D FINANCIAL SUPERMARKETS, b y S t e p h e n A .
Rhoades. February 1984. 8 pp.
138. ANTITRUST L A W S , JUSTICE DEPARTMENT G U I D E LINES, A N D THE LIMITS OF CONCENTRATION IN L O -
CAL BANKING MARKETS, by James Burke. June 1984.
14 pp.
STAFF STUDIES:
Bulletin
Summaries 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.
139. SOME IMPLICATIONS OF FINANCIAL INNOVATIONS IN
THE UNITED STATES, by Thomas D. Simpson and
Patrick M. Parkinson. August 1984. 20 pp.
140. GEOGRAPHIC MARKET DELINEATION: A REVIEW OF
THE LITERATURE, by John D. Wolken. November
1 9 8 4 . 3 8 pp.
141. A COMPARISON OF DIRECT DEPOSIT A N D CHECK PAY-
Staff Studies 115-125 are out of print.
MENT COSTS, by William Dudley. November 1984.
15 pp.
142. MERGERS
AND
ACQUISITIONS
BY
COMMERCIAL
114. MULTIBANK HOLDING COMPANIES: RECENT EVIDENCE ON COMPETITION A N D PERFORMANCE IN
BANKS, 1960-83, by Stephen A. Rhoades. December
1 9 8 4 . 3 0 pp.
BANKING MARKETS, by Timothy J. Curry and John T.
Rose. Jan. 1982. 9 pp.
143. COMPLIANCE COSTS A N D CONSUMER BENEFITS OF
THE ELECTRONIC F U N D TRANSFER ACT: RECENT
126. DEFINITION A N D MEASUREMENT OF EXCHANGE MAR-
KET INTERVENTION, by Donald B. Adams and Dale
W. Henderson. August 1983. 5 pp.
127. U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: J A N U A R Y - M A R C H 1 9 7 5 , b y M a r g a r e t L .
Greene. August 1984. 16 pp.
128. U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: SEPTEMBER 1 9 7 7 - D E C E M B E R 1 9 7 9 , b y M a r -
garet L. Greene. October 1984. 40 pp.
1 2 9 . U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: OCTOBER I98O-OCTOBER 1 9 8 1 , b y M a r g a r e t
L. Greene. August 1984. 36 pp.
SURVEY EVIDENCE, by Frederick J. Schroeder. April
1 9 8 5 . 2 3 pp.
144. SCALE ECONOMIES IN COMPLIANCE COSTS FOR C O N SUMER CREDIT REGULATIONS: T H E TRUTH IN L E N D ING A N D E Q U A L CREDIT OPPORTUNITY L A W S , b y
Gregory E. Elliehausen and Robert D. Kurtz. May
1 9 8 5 . 10 pp.
A86
REPRINTS OF BULLETIN
ARTICLES
Most of the articles reprinted do not exceed 12 pages.
The Commercial Paper Market since the Mid-Seventies. 6/82.
Applying the Theory of Probable Future Competition. 9/82.
International Banking Facilities. 10/82.
Foreign Experience with Targets for Money Growth. 10/83.
Intervention in Foreign Exchange Markets: A Summary of
Ten Staff Studies. 11/83.
A Financial Perspective on Agriculture. 1/84.
Survey of Consumer Finances, 1983. 9/84.
Bank Lending to Developing Countries. 10/84.
Survey of Consumer Finances, 1983: A Second Report.
12/84.
Union Settlements and Aggregate Wage Behavior in the
1980s. 12/84.
The Thrift Industry in Transition. 3/85.
U.S. International Transactions in 1984. 5/85.
A87
Index to Statistical Tables
References are to pages A3-A79 although the prefix 'A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 19, 20, 74
Assets and liabilities (See also Foreigners)
Banks, by classes, 18-20
Domestic finance companies, 37
Federal Reserve Banks, 10
Financial institutions, 26
Foreign banks, U.S. branches and agencies, 21, 76-79
Nonfinancial corporations, 36
Automobiles
Consumer installment credit, 40, 41
Production, 47, 48
BANKERS acceptances, 9, 23, 24
Bankers balances, 18-20 (See also Foreigners)
Bonds (See also U.S. government securities)
N e w issues, 34
Rates, 24
Branch banks, 21, 55, 76-79
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 36
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 18
Federal Reserve Banks, 10
Central banks, discount rates, 67
Certificates of deposit, 24
Commercial and industrial loans
Commercial banks, 16, 19, 70-72
Weekly reporting banks, 19-21
Commercial banks
Assets and liabilities, 18-20
Business loans, 70-73
Commercial and industrial loans, 16, 19, 21, 70-72
Consumer loans held, by type, and terms, 40, 41
Loans sold outright, 19
Nondeposit funds, 17
Number, by classes, 18
Real estate mortgages held, by holder and property, 39
Time and savings deposits, 3
Commercial paper, 23, 24, 37
Condition statements (See Assets and liabilities)
Construction, 44, 49, 73
Consumer installment credit, 40, 41
Consumer prices, 44, 50
Consumption expenditures, 51, 52
Corporations
Profits and their distribution, 35
Security issues, 34, 65
Cost of living (See Consumer prices)
Credit unions, 26, 40 (See also Thrift institutions)
Currency and coin, 18
Currency in circulation, 4, 13
Customer credit, stock market, 25
DEBITS to deposit accounts, 15
Debt (See specific types of debt or
Demand deposits
Adjusted, commercial banks, 15
Banks, by classes, 18-21
securities)
Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 22
Turnover, 15
Depository institutions
Reserve requirements, 7
Reserves and related items, 3, 4, 5, 12
Deposits (See also specific types)
Banks, by classes, 3, 18-20, 21
Federal Reserve Banks, 4, 10
Turnover, 15
Discount rates at Federal Reserve Banks and at foreign
central banks and foreign countries (See Interest
rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
EMPLOYMENT, 45
Eurodollars, 24
FARM mortgage loans, 39
Federal agency obligations, 4, 9, 10, 11, 31, 32
Federal credit agencies, 33
Federal finance
Debt subject to statutory limitation, and types and
ownership of gross debt, 30
Receipts and outlays, 28, 29
Treasury financing of surplus, or deficit, 28
Treasury operating balance, 28
Federal Financing Bank, 28, 33
Federal funds, 5, 17, 19, 20, 21, 24, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 38, 39
Federal Housing Administration, 33, 38, 39
Federal Land Banks, 38
Federal National Mortgage Association, 33, 38, 39
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 4, 10, 11, 30
Federal Reserve credit, 4, 5, 10, 11
Federal Reserve notes, 10
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 37
Business credit, 36
Loans, 19, 40, 41
Paper, 23, 24
Financial institutions
Loans to, 19, 20, 21
Selected assets and liabilities, 26
Float, 4
Flow of funds, 42, 43
Foreign banks, assets and liabilities of U.S. branches and
agencies, 21, 76-79
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4, 10, 19, 20
Foreign exchange rates, 68
Foreign trade, 54
Foreigners
Claims on, 55, 57, 60, 61, 62, 64
Liabilities to, 20, 54, 55, 57, 58, 63, 65, 66
A88
GOLD
Certificate account, 10
Stock, 4, 54
Government National Mortgage Association, 33, 38, 39
Gross national product, 51
HOUSING, new and existing units, 49
INCOME, personal and national, 44, 51, 52
Industrial production, 44, 47
Installment loans, 40, 41
Insurance companies, 26, 30, 39
Interest rates
Bonds, 24
Commercial and industrial loans, 70-72
Consumer installment credit, 41
Federal Reserve Banks, 6
Foreign central banks and foreign countries, 67
Money and capital markets, 24
Mortgages, 38
Prime rate, commercial banks, 23
Time and savings deposits, 8
International capital transactions of United States, 53-67
International organizations, 57, 58, 60, 63, 64
Inventories, 51
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 18, 19, 20, 21, 26
Commercial banks, 3, 16, 18-20, 39
Federal Reserve Banks, 10, 11
Financial institutions, 26, 39
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 18-20
Commercial banks, 3, 16, 18-20, 70
Federal Reserve Banks, 4, 5, 6, 10, 11
Financial institutions, 26, 39
Insured or guaranteed by United States, 38, 39
MANUFACTURING
Capacity utilization, 46
Production, 46, 48
Margin requirements, 25
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 5
Reserve requirements, 7
Mining production, 48
Mobile homes shipped, 49
Monetary and credit aggregates, 3, 12
Money and capital market rates, 24
Money stock measures and components, 3, 13
Mortgages (See Real estate loans)
Mutual funds, 35
Mutual savings banks, 8, 26, 39, 40 (See also Thrift
institutions)
NATIONAL defense outlays, 29
National income, 51
Nontransaction balances, 3, 13, 19, 20
OPEN market transactions, 9
PERSONAL income, 52
Prices
Consumer and producer, 44, 50
Stock market, 25
Prime rate, commercial banks, 23
Producer prices, 44, 50
Production, 44, 47
Profits, corporate, 35
REAL estate loans
Banks, by classes, 16, 19, 20, 39
Financial institutions, 26
Terms, yields, and activity, 38
Type of holder and property mortgaged, 39
Repurchase agreements, 5, 17, 19, 20, 21
Reserve requirements, 7
Reserves
Commercial banks, 18
Depository institutions, 3, 4, 5, 12
Federal Reserve Banks, 10
U.S. reserve assets, 54
Residential mortgage loans, 38
Retail credit and retail sales, 40, 41, 44
SAVING
Flow of funds, 42, 43
National income accounts, 51
Savings and loan associations, 8, 26, 39, 40, 42 (See also
Thrift institutions)
Savings deposits (See Time and savings deposits)
Securities (See specific types)
Federal and federally sponsored credit agencies, 33
Foreign transactions, 65
New issues, 34
Prices, 25
Special drawing rights, 4, 10, 53, 54
State and local governments
Deposits, 19, 20
Holdings of U.S. government securities, 30
New security issues, 34
Ownership of securities issued by, 19, 20, 26
Rates on securities, 24
Stock market, 25
Stocks (See also Securities)
New issues, 34
Prices, 25
Student Loan Marketing Association, 33
TAX receipts, federal, 29
Thrift institutions, 3 (See also Credit unions, Mutual
savings banks, and Savings and loan associations)
Time and savings deposits, 3, 8, 13, 17, 18, 19, 20, 21 (See
also Transaction and Nontransaction balances)
Trade, foreign, 54
Transaction balances, 13, 19, 20
Treasury cash, Treasury currency, 4
Treasury deposits, 4, 10, 28
Treasury operating balance, 28
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 18, 19, 20
Treasury deposits at Reserve Banks, 4, 10, 28
U.S. government securities
Bank holdings, 17, 18-20, 21, 30
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 4, 10, 11, 30
Foreign and international holdings and transactions, 10,
30, 66
Open market transactions, 9
Outstanding, by type and holder, 26, 30
Rates, 24
U.S. international transactions, 53-67
Utilities, production, 48
VETERANS Administration, 38, 39
WEEKLY reporting banks, 19-21
Wholesale (producer) prices, 44, 50
YIELDS (See Interest rates)
A89
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
Joseph A. Baute
Thomas I. Atkins
Frank E. Morris
Robert W. Eisenmenger
NEW YORK*
10045
John Brademas
Clifton R. Wharton, Jr.
M. Jane Dickman
E. Gerald Corrigan
Thomas M. Timlen
Buffalo
14240
John T. Keane
PHILADELPHIA
19105
Robert M. Landis
Nevius M. Curtis
Edward G. Boehne
Richard L. Smoot
CLEVELAND*
44101
William H. Knoell
E. Mandell de Windt
Robert E. Boni
Milton G. Hulme, Jr.
Karen N. Horn
William H. Hendricks
Leroy T. Canoles, Jr.
Robert A. Georgine
Robert L. Tate
Wallace J. Jorgenson
Robert P. Black
Jimmie R. Monhollon
John H. Weitnauer. Jr.
Bradley Currey, Jr.
Martha Mclnnis
E. William Nash, Jr.
Eugene E. Cohen
Condon S. Bush
Leslie B. Lampton
Robert P. Forrestal
Jack Guynn
Stanton R. Cook
Robert J. Day
Russell G. Mawby
Silas Keehn
Daniel M. Doyle
W.L. Hadley Griffin
Mary P. Holt
Sheffield Nelson
Henry F. Frigon
Donald B. Weis
Thomas C. Melzer
Joseph P. Garbarini
John B. Davis, Jr.
Michael W. Wright
Gene J. Etchart
Gary H. Stern
Thomas E. Gainor
Irvine O. Hockaday, Jr.
Robert G. Lueder
James E. Nielson
Patience Latting
Kenneth L. Morrison
Roger Guffey
Henry R. Czerwinski
Robert D. Rogers
Bobby R. Inman
John R. Sibley
Robert T. Sakowitz
Robert F. McDermott
Robert H. Boy kin
William H. Wallace
Alan C. Furth
Fred W. Andrew
Richard C. Seaver
Paul E. Bragdon
Don M. Wheeler
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
Charles A. Cerino
Harold J. Swart
Robert D. McTeer, Jr.
Albert D. Tinkelenberg
John G. Stoides
Fred R. Herr
James D. Hawkins
Patrick K. Barron
Jeffrey J. Wells
Henry H. Bourgaux
Roby L. Sloan
John F. Breen
James E. Conrad
Paul I. Black, Jr.
Robert F. McNellis
Wayne W. Martin
William G. Evans
Robert D. Hamilton
Joel L. Koonce, Jr.
J.Z. Rowe
Thomas H. Robertson
Robert M. McGill
Angelo S. Carella
E. Ronald Liggett
Gerald R. Kelly
*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016;
Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
A90
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
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LEGEND
—— B o u n d a r i e s o f F e d e r a l R e s e r v e D i s t r i c t s
B o u n d a r i e s of F e d e r a l R e s e r v e B r a n c h
Territories
®
F e d e r a l R e s e r v e B a n k Cities
•
Federal Reserve Branch Cities
F e d e r a l R e s e r v e B a n k Facility
Q
B o a r d of G o v e r n o r s of t h e F e d e r a l R e s e r v e
System
Publications of Interest
FEDERAL RESERVE
PUBLICATIONS
CONSUMER
CREDIT
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 " p a p e r l e s s " 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.
LECINO
LE4SMG
TRUTH IN LE4SING
What
Ituthln
Lending
Means
To You
The
Equal Credit
Opportunity
Act and
Credit Rights
In Housing
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.
The Monetary Policy and Reserve
Requirements
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.
@FedFRASER