Full text of Federal Reserve Bulletin : August 1987
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VOLUME 7 3 •
NUMBER 8 •
V
AUGUST 1987
FEDERAL RESERVE
BULLETIN
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • Michael Bradfield • S. David Frost
• Griffith L. Garwood • James L. Kichline • Edwin M. Truman
The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by Mendelle T.
Berenson, the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.
Table of Contents
633 MONETARY
CONGRESS
POLICY
REPORT
TO THE
The economy expanded at a somewhat accelerated pace in the first half of 1987, and
the civilian unemployment rate declined
over the period to 6.1 percent in June, the
lowest level in this decade.
647 INDUSTRIAL
PRODUCTION
Industrial production increased an estimated 0.5 percent in May.
649 STATEMENT
TO
CONGRESS
Manuel H. Johnson, Vice Chairman, Board
of Governors, offers testimony on the issue
of money laundering, including efforts to
press for greater international cooperation
by bank supervisors in addressing the use of
banking organizations to launder money,
before the Subcommittee on Financial Institutions Supervision, Regulation and Insurance of the House Committee on Banking,
Finance and Urban Affairs, June 9, 1987.
655
ANNOUNCEMENTS
Statement by Chairman Volcker on the
death of Arthur F. Burns.
Meeting of Consumer Advisory Council.
Comments requested on revised proposal to
charge assessments and fees for certain
supervisory activities.
Changes in Board staff.
Admission of two state banks to membership in the Federal Reserve System.
659 LEGAL
DEVELOPMENTS
Various bank holding company, bank service corporation, and bank merger orders;
and pending cases.
AI FINANCIAL
AND BUSINESS
A3 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A53 International Statistics
A 6 9 GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND
SPECIAL
TABLES
A 7 4 BOARD
OF GOVERNORS
A76 FEDERAL OPEN MARKET
AND STAFF; ADVISORY
A78 FEDERAL RESERVE
PUBLICATIONS
Nominations sought for appointments to
Consumer Advisory Council.
A 8 i INDEX
Direct deposit of social security payments
in the United Kingdom.
A83 FEDERAL RESERVE
AND OFFICES
Amendment to Regulation Y.
A84 MAP OF FEDERAL
STATISTICS
AND
STAFF
COMMITTEE
COUNCILS
BOARD
TO STATISTICAL
TABLES
BANKS,
RESERVE
BRANCHES,
SYSTEM
Monetary Policy Report to the Congress
Report submitted to the Congress on July 21,
1987, pursuant to the Full Employment and Balanced Growth Act of 1978.'
MONETAR
Y POLIC
OUTLOOK
FOR
1987
Y AND
AND
THE
ECONOMIC
1988
The economy expanded at a somewhat accelerated pace in the first half of 1987, and the civilian
unemployment rate declined over the period to
6.1 percent in June, the lowest level in this
decade. Moreover, the pattern of activity has
exhibited encouraging signs that a turnaround in
the trade sector is under way. An improvement
in net exports in real terms appears to be providing a lift to activity in the industrial sector,
offsetting slower growth of domestic spending
and sustaining a moderate rise in overall domestic production. However, the process of restoring balance to the U.S. external accounts has
involved a sizable increase in the prices paid for
imported goods. These price increases have occurred at the same time that a rebound in world
oil prices has been carrying inflation rates above
last year's modest pace.
Although some of the elements necessary for
sustaining economic growth are now beginning to
fall into place, the economic outlook continues to
be clouded by a number of imbalances, risks, and
uncertainties. The experience of the first half
underscored, in particular, the dangers associated with a loss of market confidence in the dollar
and the related potential for a rekindling of
inflation expectations. The Federal Reserve, in
implementing monetary policy, was sensitive to
these dangers, while it continued to provide
support for sustainable economic growth. During
I. The charts to the report are available on request from
Publications Services, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.
the first part of the year, growth in money and
credit slowed from the rapid pace of 1986, even
though pressures on the reserve positions of
depository institutions remained mild. Those
pressures were increased somewhat in late April
and May, however, as the dollar fell sharply
against other key currencies, inflation expectations flared up, and long-term interest rates
jumped to higher levels. In response to these
steps, and to complementary policy actions
taken abroad, the dollar has stabilized, and interest rates have retreated somewhat from their
May highs.
If the nation is to achieve an orderly transition
to better external balance, one marked by a
minimum of financial or inflationary pressures,
responsible action by many parties—in addition
to |he Federal Reserve—will be necessary. Further progress in reducing our federal budget
deficit is essential: a failure to achieve this oftenstated objective could only damage confidence in
our ability to deal with our economic problems
and contribute to imbalances in financial markets
and the economy. In addition, satisfactory
growth in the other major industrial countries is
crucial, as are efforts on all sides to maintain
and improve the openness of the international
marketplace. The private sector also must
play a constructive role by remaining sensitive
to wage and price practices that promote the
international competitiveness of American business.
Economic
and Financial
Background
The economic expansion has now progressed
well into its fifth year. Real gross national product rose at a 43A percent annual rate in the first
quarter. However, much of the increase in production reflected a rebuilding of business inventories that had been drawn down late in 1986, and
real GNP appears to have increased at an appreciably more moderate pace in the second quarter.
634
Federal Reserve Bulletin • August 1987
Nonetheless, growth remained strong enough to
sustain a downtrend in unemployment.
Beneath these solid gains in aggregate economic activity have been welcome improvements in the fortunes of sectors that have failed
to participate in the increasing prosperity of the
past several years. As suggested above, the most
significant development has been the emerging
improvement in the nation's trade performance,
which has begun to close the gap between the
pace of growth in the industrial sector and in the
rest of the economy; indeed, some segments of
manufacturing have reached relatively high levels of capacity utilization and strong profitability.
Economic strains also appear to be easing in
other troubled sectors. Oil-well drilling, while
still at depressed levels, has turned up as a
consequence of the firming of world oil prices.
Agricultural income was quite high last year,
although it continued to be heavily dependent on
government support; farmland values seem to
have stabilized, and the amount of delinquent
farm loans has begun to decline.
While the external sector has been strengthening in real terms in recent quarters, growth in
domestic demand has moderated considerably.
To some extent, the slower rise in household and
business purchases in the early months of this
year was a reflection of the acceleration that had
occurred at the end of 1986, motivated by tax
considerations. However, consumers, in particular, have shown signs of less exuberance in their
expenditure patterns after a period of several
years in which their willingness to spend increasing proportions of their income provided considerable thrust to business activity. A moderation
of domestic spending growth is, of course, a
fundamental ingredient in achieving better external balance without putting excessive strains on
available resources.
A key element in the recent trade developments has been the steep drop in the foreign
exchange value of the dollar—almost 40 percent
on a trade-weighted basis against the currencies
of the other Group of Ten countries—since early
1985. That decline, in conjunction with notable
restraint on labor costs, has greatly enhanced the
competitiveness of U.S. producers in international markets. At the same time, though, the
depreciation has caused prices of imported goods
to increase—sharply in some cases—and has
exacerbated a bulge in prices coming from higher
energy costs. The rise in consumer prices, averaging more than 5 percent at an annual rate over
the first five months of this year, was a disturbing
departure from recent experience. Moreover, as
the dollar exhibited continued weakness in the
early spring, and with progress toward improvement in the U.S. current account slower than
many had anticipated, concerns mounted about
inflation prospects. This was reflected for a time
in rising prices of precious metals and other
actively traded commodities, an event that only
served to reinforce the inflation fears that simultaneously were unsettling U.S. securities markets.
In these circumstances, and with the economic
advance evidencing reasonable momentum, the
Federal Reserve in late April and May adjusted
its open market operations to impose a somewhat
greater, but still quite limited, degree of pressure
on the reserve positions of depository institutions. This step was reassuring to the markets.
Coupled with complementary actions by monetary authorities abroad and more favorable news
on prices and U.S. merchandise trade flows, the
firming of money market conditions contributed
not only to a turnaround in the dollar on exchange markets but also to a rally in bond prices.
On balance, however, short-term interest rates
currently are about Vi percentage point above
their levels at the time of the Board's February
monetary policy report to the Congress, and
long-term rates are up about a full percentage
point.
The rate of growth of the money stock measures M2 and M3 has been well below that of last
year and close to, or below, the lower end of the
target ranges adopted in February. This has been
viewed as acceptable by the Federal Open Market Committee (FOMC), given the inflation and
exchange rate developments described above, as
well as indications of greater-than-anticipated
strength in the velocity of money (that is, the
ratio of nominal GNP to money). M2 rose at an
annual rate of only 4 percent between the fourth
quarter and June, appreciably below the growth
range of 51/2 to 8V2 percent for the year, while M3
Monetary
grew at a 5lA percent rate, a shade below the
lower bound of its identical range.
The marked deceleration of monetary growth,
and the accompanying rise in M2 and M3 velocity after two years of decline, reflected a variety
of influences. Some unwinding of the buildup in
balances that occurred late last year in connection with a huge volume of tax-related transactions may have been involved; tax reform also
may have damped growth in money as individuals reduced their additions to deposit holdings
rather than using consumer credit, on which
interest is no longer fully tax-deductible. Capital
constraints on the growth of bank and thrift
institution assets may have limited the depositories' efforts to seek funds, an effect likely to
express itself most fully at the level of M3, which
encompasses a broad range of depository-institution liabilities.
But it is another factor that appeared most
important, particularly in the case of M2.
Changes in deposit rates have lagged changes in
market rates—behavior exhibited quite consistently in the period since most restrictions on
deposit rates were removed. With market rates
rising, financial assets other than those included
in M2 have become relatively more attractive to
the public, the opposite of developments in 1985
and 1986. This same phenomenon, reinforced by
the normal downward adjustment of compensating-balance requirements as rising interest rates
enable banks to earn more on business demand
deposits, has had a marked effect on Ml growth
as well, which slowed to a 10 percent annual rate
between the fourth and second quarters (and to a
73/4 percent rate between the fourth quarter and
June); Ml velocity appears to have changed little
in the second quarter, after more than two years
of steep decline.
Reflecting in large part the diminution of the
federal deficit and a slowing in state and local
government borrowing, influenced by the Tax
Reform Act, aggregate credit expansion in the
economy has slowed noticeably this year. The
debt of domestic nonfinancial sectors is estimated to have expanded at an annual rate of
about 93/4 percent through June, still high relative
to the growth of nominal GNP but less rapid than
in the past several years and within the monitor-
Policy Report
to the Congress
635
ing range of 8 to 11 percent specified by the
Federal Open Market Committee.
Ranges for Money
1987 and 1988
and Credit
Growth
in
At its meeting earlier this month, the FOMC did
not change the 1987 ranges for money and credit
growth that it had established in February. As
indicated at that time, operating decisions will
continue to be made not only with due regard to
the behavior of these aggregates, but also in light
of evidence on emerging trends in economic
activity and inflation and developments in domestic and international financial markets. At
this juncture, given the actual growth achieved in
the first half, it seems likely that, absent major
movements in interest rates that alter the incentives to hold monetary assets, expansion in M2
and M3 around the lower ends of their 5!/2 to 8V2
percent annual ranges may well be appropriate.
Indeed, should the recent tendency toward a
strengthening in velocity, which has been particularly noticeable in the case of M2, persist, or if
inflationary pressures appear to be mounting,
some shortfall from the annual ranges might well
be appropriate. With regard to the domestic debt
aggregate, the FOMC anticipated that the slower
pace of debt growth in the first half would
continue and that the aggregate would end the
year well within the monitoring range of 8 to 11
percent.
Consistent with the objective of maintaining
progress over time toward general price stability
while supporting sustainable growth in economic
activity, the FOMC decided to adopt on a tentative basis lower growth ranges for money and
credit in 1988. The target growth ranges for M2
and M3 were reduced Vi percentage point, to 5 to
8 percent, measured from the fourth quarter of
1987 to the fourth quarter of 1988. At the same
Ranges of growth for monetary and credit aggregates
Percent change, fourth quarter to fourth quarter
Monetary or credit aggregate
M2
M3
Credit
1987
51h to m
5'/2 to m
8 to 11
1988,
tentative
5 to 8
5 to 8
V/i to 10'/2
636
Federal Reserve Bulletin • August 1987
time, the monitoring range for growth of nonfinancial sector debt also was tentatively reduced
by 1/2 percentage point, to IV2 to 10'/2 percent.
The Committee noted that Ml has continued to
exhibit considerable sensitivity to changes in
interest rates, among other factors, as illustrated
by its sharp deceleration in the first half of this
year. In view of this, and the still-limited experience with the behavior of deregulated transactions accounts, the Committee decided not to set
a specific target range for Ml for the second half
of 1987, and no tentative range was adopted for
1988. In its policy deliberations over the remainder of the year, the FOMC will take account of
Ml growth in light of the behavior of its velocity,
incoming information about the economy and
financial markets, and the degree of emerging
price pressures.
Economic projections for 1987 and 19881
Economic
1. The administration has yet to publish its midsession budget
review but spokesmen have indicated that earlier forecasts will be
revised. As a consequence, the customary comparison of FOMC
forecasts and administration economic goals has not been included in
this report.
Projections
As noted above, the Committee believes that the
monetary objectives that it has set are consistent
with restraint on inflation in the context of continued moderate growth in economic activity and
progress toward a sustainable external position.
As is indicated in the following table, the central
tendency of the forecasts of Committee members
and other Reserve Bank presidents is for growth
in real GNP of 2Vi to 3 percent in 1987 and 1988.
Between now and the end of next year, this pace
of activity is expected to generate jobs in about
sufficient number to match the expansion of the
work force. Consequently, the civilian unemployment rate is not expected to change appreciably from the 6'/4 percent average of the second
quarter, although recent experience suggests that
the projected growth of real GNP might lead to
somewhat lower unemployment.
Real net exports of goods and services are
expected to strengthen further while the growth
of domestic demand remains relatively subdued.
The improved competitive position of U.S. producers resulting in large part from the dollar
depreciation of the past two years has only begun
to be reflected in trade flows, and further improvement in the nation's external position
should be realized in coming quarters. Household spending is expected to grow slowly, but
stronger increases in business investment, espe-
Percent
FOMC members and
other FRB Presidents
GNP or unemployment
Central
tendency
Range
1987
GNP, change from fourth quarter to
fourth quarter
Nominal
Real
Implicit deflator
Civilian unemployment rate, average
level in the fourth quarter
53/4
to 71/
4
2 to 33/4
3 to 41/4
6.1 to 6.5
6'/4 to 7
2V2 to 3
3V2 to 4
6.2 to 6.4
1988
GNP, change from fourth quarter to
fourth quarter
Nominal
Real
Implicit deflator
5 to 8
1 to 3
2Vi to 5
Civilian unemployment rate, average
level in the fourth quarter
5.9 to 6.8
5% to 7
2Vi to 3
33/4 to 4!/4
6 to 6.5
cially in equipment, are anticipated as industrial
firms respond to more favorable sales trends.
Prices, as measured by the implicit deflator for
GNP, are expected to rise V/i to 4 percent over
the four quarters of 1987—slightly more than the
central-tendency range reported to the Congress
in February. For 1988, projections of the increase in the GNP deflator center on 4 percent.
Assuming world oil prices are more stable, there
should be no repetition of the rebound in domestic energy prices that raised the general rate of
inflation earlier this year. However, the acceleration in prices of non-oil imported goods that is
occurring in the wake of the decline in the foreign
exchange value of the dollar likely will continue
for a time to provide some impetus to inflation,
even if the dollar is more stable over the period
ahead, as assumed. The size of further increases
in import prices resulting from the depreciation
to date will depend on the aggressiveness with
which foreign exporters and U.S. distributors
seek to restore profit margins that have been
squeezed in the past two years. The view that
inflation next year will not rise significantly from
the pace projected for 1987 is grounded in a belief
that recognition of the potential for losses of
Monetary Policy Report to the Congress
market share and job opportunities will continue
to influence wage- and price-setting behavior.
While restraint on inflation is crucial in achieving an orderly adjustment as our massive external imbalance is corrected, so too is continued
progress in reducing the federal budget deficit.
Inflows of foreign capital will shrink in step with
the reduction in our current account deficit, and
in that context excessive federal borrowing requirements, as they put pressure on financial
markets, pose a threat to the ability of our
economy to fund necessary private capital formation.
Finally, the members of the Committee and
other Reserve Bank presidents also view the
prospects for a healthy U.S., and world, economy as depending significantly on the avoidance
of further protectionist measures here and
abroad and on satisfactory economic growth in
other major industrial countries.
THE PERFORMANCE
OF THE ECONOMY
DURING THE FIRST HALF OF 1987
The economy continued to expand in the first
half of 1987, and, in contrast to the pattern of the
preceding four years, the composition of activity
appeared to be moving toward a better balance
between domestic spending and domestic production. The overall growth in output during the
first six months of the year led to a net gain in
jobs of around 1V* million, a faster pace of hiring
than during 1986. Moreover, the civilian unemployment rate, which had hovered close to 7
percent throughout most of last year, moved
down to 6.1 percent by June.
Inflation picked up early this year, with most
broad indexes of prices posting increases substantially above those of the past several years.
In large part, the acceleration reflected developments in oil markets, where prices have retraced
part of last year's decline. But rising prices for
other imported goods also began to surface at the
retail level, and, at the producer level, prices
paid for raw materials and other supplies clearly
turned up. Wage trends, however, have remained both stable and restrained.
Higher inflation rates have been, in part, a
consequence of the ongoing adjustment of the
U.S. economy to a lower foreign exchange value
637
of the dollar. Prices of non-oil imports, particularly for finished consumer goods and capital
equipment, have been rising at rates in excess of
domestic prices in recent quarters, damping the
demand for imported goods. At the same time,
goods produced in the United States have become more competitive in world markets. The
volume of exports, which began to pick up
noticeably in the second half of 1986, continued
to expand in early 1987, although the rebound
likely has been limited by slow economic growth
abroad.
Toward the end of 1986, some manufacturing
industries—notably those producing textiles, apparel, steel, chemicals, and paper—began to
experience a firming in demand apparently associated with improved trade conditions. In the
first six months of 1987, production of office
equipment and some other high-tech capital
goods as well as several categories of industrial
machinery also picked up. Moreover, domestic
energy output stabilized, after having been a
serious drag on industrial production last year.
On the whole, the pace of activity in the goodsproducing sector moved back into line with the
overall rise in GNP. The index of industrial
production increased at a 3 percent annual rate
between the third quarter of 1986 and the second
quarter of 1987, after little change during the
preceding year.
The External
Sector
The dollar depreciated further against other major currencies in the first half of 1987, with most
of the adjustment concentrated in one episode
early in January and in another during a period of
unsettled markets in the early spring. Since midMay, the dollar has retraced part of its recent
decline, but, on a trade-weighted basis against
other G-10 currencies, it remains about 6 percent
below its average level in December 1986 and
almost 40 percent below its peak in February
1985. The underlying downward pressure on the
dollar during the first half was fueled by perceptions that progress in reducing the U.S. current
account deficit had been slow and by disappointment concerning prospects for policy adjustments, here and abroad, aimed at restoring better
balance in the world economy. An offsetting
638
Federal Reserve Bulletin • August 1987
factor until recently was the widening of interest
rate differentials between the United States and
the other major industrial countries, as rates rose
in the United States while declining abroad.
The U.S. current account deficit stood at just
under $150 billion in the first quarter of 1987,
little changed, in nominal terms, from the deficit
in the second half of 1986. The volume of merchandise imports of goods other than oil has been
about flat in recent quarters, after rising steadily
for three and one-half years. Demand has leveled
off for a wide range of imported industrial materials, consumer goods, and capital equipment.
This adjustment occurred, however, as dollar
prices for these goods began to pick up, and thus
the value of non-oil imports has continued to
edge higher. Demand for imported petroleum
products dropped back early this year, but with
world oil prices higher, the U.S. oil import bill
stayed at about its 1986 level.
At the same time, the expansion in the volume
of merchandise exports that began in mid-1986
extended into early 1987. The improvement in
foreign sales has been broadly based; in particular, shipments abroad of industrial materials and
capital goods, which account for the bulk of U.S.
merchandise exports, both were up about 10
percent in real terms in the first quarter from the
average in the first half of 1986. The volume of
agricultural exports also firmed somewhat recently, as sharply reduced support prices appear
to be combining with the lower dollar to boost
foreign demand for some U.S. farm products.
The adjustment in the U.S. trade position to
date has occurred without much impetus from
economic expansion abroad. Growth of real
GNP in other industrial countries averaged less
than 2'/2 percent last year; moreover, economic
activity began to slow in the second half of the
year, and, at least in Europe, the weakness
continued into early 1987. Export and import
volumes in Europe and Japan have begun to
adjust to the exchange rate movements of the
past two years, cutting into the growth generated
by their external sectors. While growth in domestic demand has been maintained above the rate
for domestic production, it, too, has slowed and
has not taken up the slack from a weak external
sector.
Outside of the industrial countries, average
growth last year was quite uneven and, on balance, provided only a limited offset to slower
economic activity in Europe and Japan. Weakness in oil markets held down OPEC growth
while the newly industrialized countries in Asia
continued to expand strongly. In Latin America,
which is an important market for U.S exports,
output rose close to 4 percent for a third year, a
marked turnaround from the 1982-83 period,
when the onset of external financing difficulties
seriously disrupted trade. Internal pressures to
maintain reasonably strong growth persist in
these countries; such growth could be facilitated
by an improved performance of the industrial
economies as a group.
The Household
Sector
Consumer spending weakened considerably in
the first half of 1987, after three years in which
real gains averaged 33/4 percent per year. In
particular, households cut back sharply their
purchases of durable goods and outlays for nondurables flattened out; spending for services,
however, continued to trend up. Slower sales of
new automobiles contributed importantly to the
overall deceleration in consumer spending. During the first half, sales of new cars averaged 10
million units at an annual rate, down from a
record 11 Vi million units in 1986. The slackening
in demand was most noticeable for domestic
makes and persisted despite the continuation of
special incentive programs on a wide range of
models.
The deceleration in consumer outlays, especially for durables such as motor vehicles, furniture, and home appliances, followed a period of
several years during which a variety of factors
were working to encourage households to increase their holdings of big-ticket items: relatively moderate increases, or even decreases, in
the prices of many home goods; declines in
interest rates; and pent-up demands from the
period of economic weakness in the early 1980s.
As those influences dissipated, and with the
personal saving rate reaching an historically low
level by late 1986, consumers apparently became
more cautious in their buying patterns. Nonetheless, survey evidence still suggested that house-
Monetary Policy Report to the Congress
holds' evaluations of market conditions for major
purchases and of their personal finances remained generally positive.
During the first five months of 1987, growth in
nominal disposable income picked up from its
1986 pace; but, with consumer prices rising more
rapidly, income growth in real terms was little
different from the 2 percent pace of the preceding
two years. However, the aggregate balance sheet
of the household sector showed further improvement early this year. Asset holdings were bolstered especially by gains in stock prices, while
debt accumulation slowed. Growth of mortgage
debt dropped back from the extraordinary pace
of late 1986 despite the popularity of home equity
loans, and growth of consumer credit dropped
sharply. To some extent, the deceleration in
consumer debt, as well as the slowdown in
spending on durable goods, may be a consequence of the rapid rise in household debt burdens during the past several years. In addition,
the new tax law diminished the incentive to
finance expenditures with installment credit. Despite the slower growth of consumer and mortgage debt, some indicators suggest that a considerable number of households still are having
problems servicing existing liabilities. Although
some loan delinquency rates dropped a bit,
others rose in the first quarter, as did personal
bankruptcies.
The Business
639
Sector
Business spending on plant and equipment fell
sharply in the first quarter of 1987. For equipment, the weakness was concentrated in January
and followed a tax-induced bunching of purchases in late 1986. In subsequent months, shipments of nondefense capital goods recovered,
leaving the average level for April and May, in
nominal terms, 13A percent above the third quarter of last year. New orders for nondefense
capital goods also dipped at the beginning of the
year, but then strengthened noticeably as bookings for aircraft and for office and computing
equipment rose sharply. The recent level of
orders appears consistent with a continuation in
the near term of the moderate uptrend in spending on equipment that has prevailed over the past
two years. According to responses to private
surveys concerning business capital spending
plans for the year as a whole, firms still intend to
direct the bulk of these purchases toward modernization and cost-saving improvements in their
production lines.
In contrast, the environment for expansion of
plant facilities and office space is still generally
unfavorable. Large amounts of vacant and underused space in both office buildings and factories
began to take a toll of nonresidential construction
last year; and less favorable treatment of commercial structures under the new tax code reinSpurred by a decline in mortgage interest
forced the tendencies toward a lower level of
rates, which reached a nine-year low at the end
activity in this sector. As a result, spending for
of March, starts of new single-family homes
averaged 1 VA million units at an annual rate from commercial and industrial buildings dropped further in the first quarter of 1987, to a level about 20
January through April, the highest level since the
percent below that of a year earlier. The decline
late 1970s. Sales of single-family homes, which
in spending for these types of buildings achad been boosted by tax considerations at the
counted for the overall weakness in nonresidenend of 1986, also remained brisk through April.
tial structures early this year, in the face of an
Subsequently, the backup in mortgage rates to
upturn in oil drilling and some increases in other
early-1986 levels resulted in some reduction in
categories.
single-family homebuilding, to around the pace
that prevailed last fall. In the multifamily market,
A sizable swing in business inventories around
the downtrend in activity that began in early 1986
the turn of this year was associated with sharp,
continued through the first half of 1987. In the
tax-induced fluctuations in sales. The surge in
second quarter, multifamily starts were one-third
consumer and business spending at the end of
below last year's peak. Despite the adjustment
1986 was met to a considerable extent by drawing
thus far to overbuilding and the reduced after-tax
down stocks, which were then rebuilt at the
profitability of multifamily housing investment,
beginning of this year. This spring, inventoryrental vacancy rates nationwide are still close to
sales ratios generally were not indicating serious
record highs.
imbalances, with the notable exception of the
640
Federal Reserve Bulletin • August 1987
auto industry. Domestic car makers boosted production in early 1987 in excess of slackening
sales, leading to a substantial backlog of unsold
cars on dealer lots. By June, a scaling back of
assemblies had stemmed further accumulation,
but the industry entered the summer with stocks
that were quite large by historical standards.
Before-tax profits of nonfinancial corporations, which had slipped a bit relative to GNP
since 1984, rose in the first quarter. After-tax
profits relative to GNP were up as well, although
the rise was damped by increases in corporate
tax liabilities associated with the new tax law.
Corporations paid out a slightly larger share of
earnings as dividends in the first quarter; nonetheless, internally generated funds remained sizable relative to investment outlays.
The Government
Sector
A substantial reduction in the federal budget
deficit for fiscal year 1987 appears in train, with
the most recent estimate from the Congressional
Budget Office at $161 billion, compared with $221
billion in fiscal 1986. Growth in receipts has been
extremely rapid; this reflects, in large part, a
one-time surge in tax payments this April from
individuals who realized capital gains last December, taking advantage of lower tax rates
under the old tax code. But more fundamental
progress in reducing spending growth also appears to have been made in the wake of the
Gramm-Rudman-Hollings legislation. Total outlays have been rising at a rate of around 2 percent
in the current fiscal year, a marked slowing from
8 percent per year during the preceding five
years. Although entitlements spending is still
increasing steadily, agricultural support payments and interest outlays have leveled off.
Moreover, military spending has begun to respond to reductions in defense authorizations
and has slowed to about half its 1986 rate of
increase. In addition, there has been continued
budgetary restraint on discretionary domestic
programs. On balance, these developments have
held down the growth of federal purchases,
which account for about a third of total federal
expenditures; excluding changes in farm inventories held by the Commodity Credit Corpora-
tion, real federal purchases were little changed
between the second quarter of 1986 and the first
quarter of this year.
Real purchases of goods and services by state
and local governments rose at a 4 percent annual
rate in the first quarter of 1987, close to the brisk
pace of the past several years. The growth in
outlays continues to be boosted by efforts to
upgrade basic infrastructures. This rise in spending has outpaced growth in receipts, however,
and the sector's combined operating and capital
accounts (that is, excluding social insurance
funds) moved into deficit in the first quarter of
this year. In many instances, a current deficit
does not signal any fundamental financial problem, as capital expenditures are financed through
bond issues. Nonetheless, a good many units are
experiencing a degree of difficulty, with oil-producing states under the most stress. Many states
are responding with plans to trim their general
funds budgets; some are considering tax increases or are planning to retain the extra receipts generated by changes in federal tax laws.
Labor
Markets
Employment accelerated early in 1987, and, despite a slowing in recent months, the average
monthly increase in nonfarm payroll employment
of just over 200,000 so far this year exceeds the
pace of hiring in 1986. The improvement in labor
demand has been fairly broadly based. In manufacturing, a two-year string of cutbacks in durable goods industries ended late last year, and
hiring picked up a bit in the nondurable goods
sector. As a result, factory employment, overall,
edged higher over the first six months of 1987. In
addition, the number of jobs in oil and gas
extraction stabilized after the sharp retrenchment in 1986. At the same time, the expansion of
jobs in the trade, services, and finance industries,
despite some recent slowing, remained sizable.
The combination of strong gains in employment and declining numbers of unemployed
workers over the first half lowered the civilian
jobless rate to 6'/4 percent on average in the
second quarter from just under 7 percent at the
end of last year. The rate for adult men (aged 25
years and over), which had been stuck at around
Monetary Policy Report to the Congress
5VI percent from mid-1984 to late 1986, moved
below 5 percent this spring; further improvement
also occurred for adult women, whose unemployment rate in the past year has moved below
that of their male counterparts.
Despite falling unemployment, available measures of labor compensation showed little sign of
acceleration early this year. Hourly compensation, as measured by the employment cost index,
rose 3.1 percent in the 12 months ending in
March, the same as the year-over-year changes
in the second half of 1986 and down nearly
three-quarters of a percentage point from a year
earlier. A wide gap persisted between the size of
pay increases for white-collar workers and for
those in blue-collar occupations. Nonetheless,
the slowing in wage inflation compared with a
year earlier was relatively widespread by industry and occupational group. An exception is the
Northeast region, where wages showed no deceleration in the year ending in March and increases
were still outpacing those in other parts of the
country by a sizable margin.
The moderation in hourly compensation increases has been the principal factor holding
down labor costs, as productivity continues to be
quite sluggish. After declining in the second half
of 1986, output per hour in the nonfarm business
sector rebounded in the first quarter of 1987, but
remained little different from its year-earlier
level. Since 1984, productivity gains in the nonfarm business sector have averaged less than 1
percent per year. The trend has been much more
favorable in the manufacturing sector, where
firms apparently have had some success in their
efforts to boost the efficiency of their production
processes; indeed, productivity gains in U.S.
manufacturing between 1985 and 1986 outstripped those recorded by other major industrial
countries.
Price
Developments
As expected, inflation rates have been higher so
far this year, largely reflecting a rebound in
energy prices. The GNP fixed-weight price index, a broad measure of inflation for goods and
services produced by the United States, increased at an annual rate of about 4 percent in the
641
first quarter; it had risen 2VI percent during 1986.
Sharper accelerations occurred in the consumer
price index, which was up at a 5'A percent rate
over the first five months of the year, and in the
producer price index for finished goods, which
rose at a 41/2 percent annual rate over the six
months ended in June.
The rebound in energy prices began in January, when spot prices of crude oil jumped about
$3 per barrel in response to the reductions in
output to which OPEC had agreed late in December. Higher crude oil costs were quickly passed
on to end-users, and by May consumer prices for
gasoline and fuel oil had risen about 15 percent,
retracing half of last year's decline. Spot prices
of petroleum products moved up a bit further
early in the summer as inventories tightened, and
these increases were supported subsequently by
the renewal of OPEC's agreement to control
production.
In addition to the developments in energy
markets, the influence of a lower value of the
dollar, as well as trade restrictions, on the prices
of imported goods became increasingly evident
at the retail level in the first part of this year. The
dockside prices of non-oil imports turned up in
1986 after several years in which stable or declining import prices had helped to restrain domestic
inflation. Although price changes have varied
considerably among different categories of imported goods, some of the largest increases have
been reported for consumer commodities, including autos. Retail prices for a number of items
with higher-than-average import proportions—
such as apparel, footwear, and some other home
goods—have shown markedly faster increases
than they did during the past several years.
These increases contributed to a sharp acceleration in the consumer price index for goods other
than food and energy between December and
May compared with 1986, while the rise in prices
of nonenergy services over the same period was
slightly less rapid than last year.
At the domestic producer level, prices of finished consumer goods and capital equipment
other than food and energy rose at an annual rate
of less than 2 percent over the first six months of
the year. At earlier stages of processing, however, prices of domestically produced intermediate materials other than food and energy rose at
642
Federal Reserve Bulletin • August 1987
a 4 percent annual rate, after two years of
essentially no change. This acceleration reflected
a sharp rise in the prices of industrial chemicals
and some other petroleum-related materials as
well as increases in a number of other categories.
Prices of primary commodities other than petroleum also have increased so far in 1987. In the
agricultural sector, crop prices have retraced
part of last year's decline, which occurred when
farmers sold large amounts of the grain they had
received from the government in lieu of cash
payments. Prices of cattle and hogs also were up
markedly into the spring, but, with supplies
improving, cattle prices have retraced much of
their advance, and hog futures prices point to
declines later this year. Prices of industrial materials, with the exception of a brief period early
this year, have been rising fairly steadily since
the early autumn of 1986. Spot prices for precious metals have been particularly sensitive to
developments in foreign exchange markets and
renewed market concerns about inflation; after
climbing sharply into May, they fell back a bit
with the subsequent firming of the dollar.
MONETAR
MARKETS
Y POLICY AND
FINANCIAL
IN THE FIRST HALF OF 1987
The Federal Open Market Committee at its meeting in February established 1987 target ranges,
measured from the fourth quarter of 1986 to the
fourth quarter of 1987, of 5'/2 to 8V2 percent for
both M2 and M3. It also set a 1987 monitoring
range for domestic nonfinancial debt of 8 to 11
percent. The M2 and M3 ranges represented a
reduction of V2 percentage point from last year's
target ranges, and the Committee expected
growth to be well within the ranges, especially in
the absence of dramatic movements in interest
rates. The range for debt was unchanged from
1986 but below the actual outcome in that year
and other recent years; thus, the Committee
anticipated that debt growth also would slow this
year.
The Committee viewed a substantial slowing in
money and credit growth from the rapid pace of
1986 as likely to be consistent with continuation
of sustainable economic expansion and conducive to further progress over time toward reason
able price stability. Growth of Ml also was
expected to moderate considerably this year.
However, the Committee in February elected not
to set a target range for Ml for 1987 because of
the continuing uncertainties about the relationship of this aggregate to the economy. These
uncertainties partly reflected the substantial sensitivity of its velocity to changes in financial
conditions that had been evident in recent years,
capped by a record postwar decline in the velocity of Ml over 1986. Instead, the FOMC decided
to continue evaluating movements in this aggregate in light of the behavior of its velocity, the
rate of economic expansion, inflationary pressures, and developments in financial markets.
Over the first half of 1987, monetary policy
was conducted against a backdrop of heightened
concerns about inflation, stimulated in part by
substantial downward pressure on the dollar in
foreign exchange markets. At the same time,
growth of money and credit aggregates moderated considerably and the velocities of the
broader monetary aggregates turned upward after several years of rapid money growth and
falling velocities. Measured from the fourth quarter of 1986, M2 in June was below the lower end
of its target growth range, while M3 was around
the lower end of its range. Meanwhile, growth in
Ml slowed to a 13A percent pace and debt expansion moderated to a 93/4 percent rate. As pressures on the dollar and inflation worries intensified in April and May, interest rates began to rise
substantially, especially in long-term markets. In
late April and May, the Federal Reserve adopted
a somewhat less accommodative stance with
respect to the provision of reserves through open
market operations. These actions, together with
monetary easing moves by key industrial trading
partners, helped to stabilize the dollar and calm
inflation fears, contributing to some decline in
long-term interest rates and strengthening of the
dollar.
Money,
Credit,
and Monetary
Policy
In its conduct of policy thus far this year, the
Federal Reserve has given a good deal of weight
to a number of considerations in addition to the
monetary aggregates—principally recurrent epi-
Monetary
Policy Report
to the Congress
643
Growth of money and credit
Percentage changes at annual rates
Ml
Period
Fourth quarter to fourth
1979
1980
•
1981
1982
1983
1984
1985
1986
M2
M3
Domestic
nonfinancial
sector debt
8.2
8.9
9.3
9.1
12.1
7.9
8.8
8.9
10.4
9.6
12.3
9.9
9.8
10.7
7.7
8.8
12.2
9.6
9.9
8.9
11.5
13.9
13.4
13.2
quarter
7.9
7.3
5.1(2.4)'
8.6
10.2
5.4
12.1
15.3
Fourth quarter 1986 to second quarter 1987
9.9
4.5
5.3
9.8''
Fourth quarter 1986 to June 1987
7.7
4.0
5.3
9.8'
8.8
15.5
16.5
17.0
13.1
6.4
5.3
9.4
10.6
9.2
6.3
2.5
7.7
8.7
9.7
8.0
6.3
4.1
15.5
10.2
12.5
12.1
10.4
9.0*
Quarterly
1986:1
2
3
4
1987:1
2
average
1. Ml figure in parentheses is adjusted for shifts to NOW accounts
in 1981.
sodes of heavy downward pressure on the dollar,
indications from long-term securities and commodity markets of heightened inflation expectations, and evidence that the economy continued
to advance at a pace sufficient to produce rising
levels of resource utilization. Under these circumstances, interest rates tended to move
higher, and the patterns of rapid money growth
and declining velocities of the last several years,
when inflation and interest rates were moving
down, began to be reversed. Growth of the broad
aggregates remained around the lower bounds of
their growth cones through most of the first half
of the year, although M2 dropped well below its
long-run range later in the period. Growth of both
M2 and M3 was considerably below the pace of
recent years, and their velocities increased. Expansion of Ml also slowed markedly, while
growth of domestic nonfinancial sector debt
moderated.
Through the early spring of this year, System
open market operations were conducted to keep
pressures on the reserve positions of depository
institutions unchanged from last year. In January, the strong credit and money demands associated with a burst of tax-related financial activity in late 1986 began to abate, and short-term
interest rates eased; however, these rates remained above levels prevailing in the fall of last
year.
e
estimated
In foreign exchange markets, the dollar had
begun to decline in late December, after a period
of some stability. The drop continued through
January, amid market concerns about the prospects for correcting U.S. and foreign external
imbalances. In late February, the statement in
Paris by the ministers of finance and central bank
governors of six major industrial countries that
they "agreed to cooperate closely to foster stability of exchange rates around current levels,"
along with a cut in the discount rate by the Bank
of Japan, seemed to stabilize the dollar for a
time.
The spread between private short-term rates
and Treasury bill rates widened after Brazil announced a suspension of interest payments to
banks in February, and subsequently widened
further as the Treasury's paydown of bills, which
began early in the year, picked up and foreign
official institutions purchased bills with the proceeds of dollars acquired in exchange market
intervention. Reflecting the somewhat higher private short-term interest rates and concomitant
increases in funding costs, commercial banks
raised the prime rate by 'A percentage point on
April 1.
Long-term rates, which had not been much
affected by the transitory credit demands of late
1986, continued to drift down in the early months
of 1987, displaying little short-term volatility.
644
Federal Reserve Bulletin • August 1987
The placid conditions in long-term markets were
abruptly changed in late March, primarily by
developments in the international sphere. Announcements of trade sanctions by the United
States, persisting weakness of the dollar, and
disappointing trade figures all raised questions
about continuing private demands for dollar assets, prospects for inflation, and the response of
monetary policy. The dollar dropped sharply in
the last three weeks of March, and between late
March and late April, yields on 30-year government bonds rose about 1 percentage point on
balance. The exchange and bond markets became highly volatile during this period, as the
dollar continued to drop and inflation fears appeared to be intensified by the publication of
adverse price data. Mortgage rates and yields on
mortgage pass-through securities reacted very
promptly to the deterioration in the bond markets
and, indeed, rose more than most other longterm rates as many investors shied away from
these instruments subject to substantial prepayment risk.
The effects of these developments also were
evident in short-term credit markets, where rates
rose in April partly in anticipation that monetary
policy would have to firm to contain pressures on
prices and the dollar. In late April and again in
May, the Federal Reserve did move to tighten
the availability of nonborrowed reserves through
open market operations. Short-term interest
rates rose about Vi to 3A percentage point during
April and May, and the prime rate was raised
twice more, on May 1 and May 15, in quarterpoint increments. The System's firming actions,
along with complementary moves abroad, helped
to stabilize the dollar and ameliorate the concerns about the inflation outlook.
Along with some better price news and evidence of improvement in our trade deficit, this
policy appeared to impart an improved tone to
short-term and, especially, long-term credit markets over the latter part of May and June. Since
May, most short-term rates have posted declines
of VA percentage point or more. Longer-term markets generally have registered greater gains, and
in early July long rates were off Vi to 3A percentage
point from their May highs. The dollar, meanwhile, has shown more dramatic improvement,
regaining the ground it lost in April and May.
As interest rate incentives favoring market
instruments over monetary assets became more
pronounced in the first half of the year, growth of
the monetary aggregates slowed. M2 decelerated
in both quarters, expanding at an annual rate of
only Vh percent in the March-to-June period. In
addition to the influence of rising interest rates,
tax reform may have weakened the public's
demand for M2 assets, particularly householdtype deposits, to the extent that it induced individuals to pay down consumer debt or to finance
expenditures out of liquid assets rather than with
credit. The velocity of M2 is estimated to have
risen in the first and second quarters, after declining in 1985 and 1986.
The slowing of M2 growth was accompanied
by a marked change in the composition of deposit
inflows away from transactions and other highly
liquid instruments and toward longer-term retail
deposits. This reversal of the pattern of portfolio
shifts in 1985 and 1986 occurred as rates on time
deposits adjusted more promptly to rising market
rates than did yields on more liquid monetary
components, and the deposit rate curve steepened.
Growth in transactions instruments fell in the
first half to a pace not seen since 1984, the last
time interest rates rose on a sustained basis.
Demand deposits, along with other checkable
deposits (OCDs), were boosted smartly in April
as individuals prepared to pay tax liabilities,
which were swollen by capital gains taken in 1986
to avoid higher rates under tax reform. On balance, however, demand deposits have exhibited
no sustained strength since late last summer.
Among other factors, the rise in interest rates
reduced the volume of demand deposits that
businesses need to hold as compensating balances for bank services. As rates on time deposits and market instruments rose, OCDs became a
less attractive savings vehicle. The progressive
slowing this year of OCD growth, which had
averaged close to 30 percent during most of
1986, was interrupted only by the April surge.
With demand deposits and OCDs both running
off in June, growth in Ml for the second quarter
was down to a 6'/2 percent rate. The velocity of
Ml in the second quarter is estimated to have
changed little, after declining in each quarter
since 1984.
Growth in other liquid balances also has been
falling. Savings deposits, after expanding at a
Monetary Policy Report to the Congress
rate of around 30 percent since the late summer
of last year, slowed in the second quarter and
advanced at a rate of only 10 percent in June, and
money market deposit accounts have been particularly weak this year. By contrast, small time
deposits, which had run off over much of last
year in an environment of falling short-term
rates, expanded significantly in June for the first
time since April 1986. Growth in small time
deposits this year has been especially strong at
thrift institutions, reflecting elevated offering
rates and, in certain cases, a shift to deposits in
denominations of under $100,000, as some of
these institutions have encountered difficulties in
issuing large time deposits.
Even with weak inflows to core deposits, the
need among commercial banks to tap wholesale
managed liabilities was limited by a moderation
in demands for credit. M3 growth was further
damped in the first half as banks obtained funds
from sources not encompassed by the monetary
aggregates, including borrowing from their foreign branches and a sharp rise in Treasury deposits. Federal Home Loan Bank advances to
thrifts also were strong, although below the pace
of last year. Growth of M3 fell below that of
income in the first half, and M3 velocity apparently rose in both quarters, the first sustained
increase in three years.
Credit flows were reduced in the first half of
1987, with total domestic nonfinancial sector
debt expanding at an annual rate of around 93A
percent, compared with rates in excess of 13
percent in each of the preceding three years.
Even so, expansion of both the private and
public components of the debt aggregate continued to outstrip the growth of income, as generally has been the case in the 1980s.
Overall business credit demands continued to
be buoyed in the first half by heavy net retirements of shares associated with mergers, buyouts, and other corporate restructurings. With
long-term rates subdued in the first three months
of the year, firms concentrated their borrowings
in bond markets and short-term business credit
contracted. However, as long-term markets deteriorated in April, bond issuance abated and
business credit demands focused on the commercial paper market. By June, with some improvement in long-term markets, these financing patterns reversed again as bond issuance picked up
645
and growth of short-term business credit came to
a halt.
Growth of consumer installment credit was
considerably diminished during the first half. The
reduced deductibility of consumer interest payments under the new tax code encouraged this
development. The tax law change made the use
of mortgage credit relatively more attractive, and
the active promotion by lenders of home equity
lines of credit reinforced tendencies toward substitution. In addition to credit taken down under
home equity lines, mortgage growth in the first
half was maintained by heavy volumes of new
and existing home sales.
Federal government credit needs in the first
half were held down by unusually strong tax
payments stemming from the retroactive repeal
of the investment tax credit and, principally,
from the capital gains realized late last year. The
budget showed a small surplus in the April-toJune period, after a $59 billion deficit in the first
quarter. Net borrowing from the public nevertheless rose in the second quarter on a seasonally
adjusted basis as the Treasury replenished its
cash balances, which had been drawn down
sharply in the initial months of the year. The
Treasury ran off bills in both quarters but continued to issue coupon securities in volume. Federal
debt expanded at a 93A percent annual rate in
the first half of the year, down from the pace of
1986.
Borrowing by state and local governments has
fallen off this year. Issuance of municipal debt for
new capital has been slowed considerably by
provisions of tax reform that narrowed the definition of public-purpose debt and constrained
private-purpose offerings. In addition, issuance
of refunding bonds, which was strong in the first
quarter, slackened after April because of higher
interest rates.
The financial system has continued to evidence
strains in 1987. Indications that the agricultural
sector is beginning to stabilize have emerged,
with loan delinquencies declining, land prices
bottoming out, and export volume firming; the
failure rate among agricultural banks seems
likely to have peaked. However, the Farm Credit
System, the nation's largest farm lender, lost
considerable sums in 1985 and 1986, and many of
its units continue to struggle with troubled loan
portfolios.
646
Federal Reserve Bulletin • August 1987
In addition to difficulties with agricultural
loans, commercial banks have been saddled with
persisting problems in their energy and developing-country loan portfolios. Although some
banks remain highly profitable, 19 percent lost
money last year, compared with about 3 percent
as the decade began; loan-loss provisions were
the main cause of the earnings problems. The
banking system is likely to post record losses this
year owing to huge reserve provisions taken by
large banks primarily as a consequence of developments in the international debt area. Despite
the shrinkage in the book value of shareholder
equity recognized by these actions, share prices
rose at many banks that announced large increases in loan-loss reserves.
Net operating income before taxes for solvent
thrift institutions rose last year as interest margins widened with falling market rates, and thrifts
overall have raised their ratio of net worth to
total assets by taking advantage of strong stock
prices to issue large volumes of equity. Nonetheless, at a significant minority of thrifts, already
negative net worth positions have been aggra-
vated by continued losses. Moreover, the problems of some troubled institutions intensified this
year as the real estate market in certain areas of
the country remained depressed and interest
rates backed up.
The difficulties of the thrift industry are mirrored in the situation of the Federal Savings and
Loan Insurance Corporation. Estimates indicate
that current and potential claims against the
FSLIC exceed its reserves by significant
amounts. With premiums levied on member institutions already at a statutory maximum, some
action clearly is called for to strengthen the
FSLIC and bolster its ability to deal with problem institutions. Plans currently under study by
the Congress would involve using retained earnings from the Federal Home Loan Banks to
capitalize a financing corporation that, in turn,
would issue obligations and invest the proceeds
in FSLIC capital stock. At this stage, these plans
call for a maximum capacity to issue debt of $81/2
billion. This would be repaid over an extended
period of time through FSLIC assessments on
member institutions.
647
Industrial Production
Released for publication
June 16
In market groups, output of consumer goods
increased 0.6 percent in May following a decline
of 0.8 percent in April. Auto production was off
slightly in May, but output of lightweight trucks
as well as that of home goods and nondurable
consumer goods increased during the month.
Auto assemblies were trimmed further in May to
an annual rate of 7.1 million units, but still
exceeded sales for May; industry schedules for
Industrial production increased an estimated 0.5
percent in May, while the level of output in each
of the preceding three months was revised upward. In May, gains in output were widespread
among products and materials. At 127.8 percent
of the 1977 average, the total index for May was
2.9 percent higher than that of a year earlier.
Ratio scale, 1977 = 100
Products
140
TOTAL I N D E X
120
100
80
MANUFACTURING
Durable
-
^
MATERIALS
/
Durable
Nondurable - p ^ ^
120
Nondurable
1
140
—
100
1
1
1
1
1
INTERMEDIATE PRODUCTS
Business supplies
Construction supplies
I
140
I
L
240
FINAL P R O D U C T S
MOTOR V E H I C L E S A N D P A R T S
200
Defense and space
120
100
160
140
80
20
Consumer goods
100
60
80
1981
1983
1985
All data are seasonally adjusted. Latest figures: May.
1987
1981
1983
1985
1987
648
1977 = 100
Group
Percentage change from preceding month
1987
1987
Apr.
May
Jan.
Feb.
Mar.
Apr.
May
Percentage
change,
May 1986
to May
1987
Major market groups
Total industrial production
127.2
127.8
-.1
.5
.0
-.1
.5
2.9
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment
Defense and space
Intermediate products
Construction supplies
Materials
135.6
134.4
126.6
118.4
129.6
140.4
186.5
140.0
127.9
115.6
136.5
135.2
127.4
119.4
130.3
141.2
187.4
140.7
128.6
116.0
-.1
.0
-.4
-1.2
-.1
.7
-.3
-.4
.3
.0
.9
1.0
.6
2.0
.2
1.9
.7
.4
.1
.0
.1
.0
.0
-.6
.3
-.1
.0
.3
.1
-.1
-.4
-.5
-.8
-2.6
-.1
-.1
-.1
-.1
-.5
.4
.6
.6
.6
.8
.6
.5
.5
.5
.5
.4
3.1
2.8
2.5
4.9
1.7
2.4
5.3
4.2
4.2
2.7
-.2
-.6
.4
.1
1.1
.5
.5
.6
-.2
1.4
3.5
2.7
4.6
-3.5
3.1
Major industry groups
.1
-.1
.3
.5
-1.0
132.7
130.4
135.9
96.3
111.9
132.0
129.8
135.1
96.5
110.4
Manufacturing
Durable
Nondurable
Mining
Utilities
.7
1.1
.1
-1.0
.1
.1
.1
.2
.2
-.3
NOTE. Indexes are seasonally adjusted.
June production show a further small decline.
Production of business equipment was up in
May, continuing the overall improvement that
began in January, particularly in the output of
manufacturing and commercial equipment.
After almost no change in both March and
April, output of defense equipment increased in
May, bringing production to a level about 5
percent higher than that of a year earlier. Output
Total industrial production—Revisions
Estimates as ; hown last month and current estimates
Month
Index (1977=100)
Percentage change
from previous
months
Previous
Current
Previous
Current
127.1
126.8
126.3
n.a.
127.2
127.3
127.2
127.8
.4
-.2
-.4
n.a.
.5
.0
-.1
.5
February
March
April
May
n.a.—Not applicable.
of both construction and business supplies increased half a percent in May but has shown, on
balance, only small gains since the beginning of
the year. Total materials production rose 0.4
percent following a similar gain (upward revised)
in April. Among durable materials, output of
metals and equipment parts increased in May;
nondurable materials, such as chemicals and
paper, also rose. Output of energy materials,
although relatively strong in May due largely to
increased electricity generation, remained below
year-earlier levels.
In industry groups, total manufacturing output
increased 0.5 percent in May following a decline
of 0.2 percent in April, which occurred mainly in
durables. In May, the durable manufacturing
sector almost regained March levels; nondurable
manufacturing, with a gain of 0.6 percent in May
following a revised rise of 0.4 percent in April,
surpassed the March level considerably. Mining
output edged down in May, but production by
utilities was up sharply.
649
Statement to Congress
Statement by Manuel H. Johnson, Vice Chairman, Board of Governors of the Federal Reserve
System, before the Subcommittee on Financial
Institutions Supervision, Regulation and Insurance of the Committee on Banking, Finance and
Urban Affairs, U.S. House of
Representatives,
June 9, 1987.
I am pleased to appear on behalf of the Federal
Reserve Board to offer additional testimony on
the issue of money laundering. The Federal
Reserve has a strong commitment to implementing appropriate policies to ensure compliance
with laws enacted to eliminate money laundering.
My goal today is to more fully inform the
committee of efforts by myself and by the staff to
press for greater international cooperation by
bank supervisors in addressing the use of banking organizations to launder money. In addition,
the committee has asked that I give a status
report on the studies required under the AntiDrug Abuse Act of 1986 and that I address the
subject of bank fraud and insider dealing. Finally, I will provide further information on the
Federal Reserve's supervisory efforts to ensure
compliance with the Bank Secrecy Act and other
laws to discourage the use of banks and the
payments system generally for laundering money.
INTERNATIONAL
COOPERATION
The Federal Reserve shares the concerns of this
committee and believes that the effectiveness of
efforts to discourage money laundering could be
further enhanced by initiatives on an international level. For the past year, the Federal Reserve,
together with the other federal banking agencies,
has worked to secure the cooperation of bank
supervisory authorities in other countries of the
world. Discussions have been held among members of the Basle Committee on Bank Regulation
and Supervisory Practices with the goal of obtaining a consensus on how best to proceed with
efforts to discourage criminal elements from using the international payments system for the
purpose of laundering money. 1 The subject was
first raised with the Basle Committee in a meeting in Washington last June. Although all members of the committee were clear in their view
that abuse of the banking system in the form of
currency laundering was a serious matter, many
members felt that the primary responsibility for
monitoring and detecting this activity rested
largely with law enforcement authorities. Nonetheless, the committee agreed that the subject
should be reviewed, and at the December 1986
meeting the U.S. delegation agreed to draft a
paper outlining the issue and making recommendations.
In addition, this paper will propose rules of
conduct that could be utilized by banks in any
country to discourage the use of the payments
system for illegal transactions. In constructing
this proposal, we have consulted with other
countries for the purpose of incorporating their
ideas as well as seeking their support of a more
active role for bank supervisors. We expect that
in the next few weeks a draft of an initial
proposal will be ready for review by the Basle
Committee, and we are attempting to put the
item on the committee agenda for the regular
meeting later this month. We recognize that
encouraging foreign supervisors to endorse the
concept that international banks should adopt a
code of conduct falls short of the extensive
currency reporting requirements in place in the
United States; however, we are hopeful that this
1. The Basle Committee was established at the end of 1974
by the central bank governors of the Group of Ten industralized countries with the objective of strengthening collaboration among national authorities in their prudential supervision
of international banking. The committee, whose members are
officials of the central banks and supervisory agencies, meets
three times a year at the Bank for International Settlements in
Basle, Switzerland.
650
Federal Reserve Bulletin • August 1987
effort, in combination with the activities of our
federal law enforcement authorities, will make a
meaningful contribution toward inhibiting the
use of the banking system for illicit money laundering.
Attempts to eliminate money laundering
through legislation are, of course, not confined to
the United States. Recently, Switzerland, for
example, has proposed laws designed to make
money laundering a crime. It is our hope that
other countries will follow suit. The proposed
rules of conduct to which I have just referred
endorse the concept that bank supervisory authorities should support legislation that would
make money laundering a crime.
Federal Reserve efforts to encourage international cooperation in this area will not be limited
to the Basle Committee. We intend to discuss
this issue when appropriate at formal and informal meetings with foreign bank supervisory authorities. It is our hope, however, that the work
going on in the Basle Supervisors' Committee
will serve as the principal vehicle for advancing
effective constraints on the involvement of international banking institutions in money laundering activities.
INTERNATIONAL
STUDIES
The Anti-Drug Abuse Act of 1986 requires that
two studies be conducted and furnished to this
committee. Both of these studies are being prepared under the auspices of the Department of
the Treasury in consultation with the Board of
Governors. The Justice Department is also to
contribute to one of the studies.
The first study deals with the results of discussions with central banks and other appropriate
governmental authorities concerning the establishment of arrangements to facilitate the flow of
information among supervisory authorities
throughout the world. The flow of information
among international supervisors is particularly
important, and the Federal Reserve is discussing
with international authorities the need to improve communications and information-sharing
procedures to strengthen supervisory activities
vis-a-vis international banking organizations. We
expect to be able to provide the Treasury with
the results of our discussions in sufficient time to
ensure a timely response to this committee.
The other study requires that information be
furnished to this committee on the following: (1)
the extent to which foreign branches of domestic
institutions are used to facilitate illicit transfers
of currency and other monetary instruments or
to evade reporting requirements; (2) the extent to
which U.S. law is applicable to the activities of
such foreign branches; and (3) methods for obtaining the cooperation of foreign countries for
the purpose of enforcing money laundering laws
and currency reporting requirements. The Federal Reserve and the Comptroller of the Currency
were asked to assist the Treasury on sections 2
and 3 of the study. While we are still in the
process of developing materials to provide to the
Treasury, we expect that the study will be completed within the committee's requested time
frame.
BANK
FRAUD
AND INSIDER
DEALING
I would now like to turn to the subject of bank
fraud and insider dealings. Experience has demonstrated that insider abuse and misconduct, as
well as criminal activities, are among the factors
contributing to bank failures. Data provided to
the Department of Justice and the Federal Bureau of Investigation (FBI) confirm that criminal
misconduct, such as fraud and embezzlement, is
a serious problem. For example, the FBI recently reported that in 1985 it worked on 6,373 bank
fraud and embezzlement cases—one-third of
which involved amounts exceeding $100,000. In
1986, this number rose to 7,286—with a corresponding increase in the number of cases involving more than $100,000. The FBI reports that in
1985 the amount of reported dollar losses because of bank fraud and embezzlement totaled
about $850 million; in 1986, this total increased to
more than $1.1 billion.
Over the past several years, the Federal Reserve by itself, and in conjunction with the other
federal banking and law enforcement agencies,
has taken a number of steps to address bank
fraud and insider abuse. A major part of this
effort relates to our involvement in the Interagency Bank Fraud Enforcement Working Group (the
"Working Group") that was formed in April
1985. The Working Group is comprised of officials from all of the federal financial institution
Statement
regulator agencies, the Justice Department, and
the FBI. The principal results of the Working
Group's efforts over the past two years include
the following:
• The Working Group developed and implemented a uniform criminal referral form to be
used by all banks, bank holding companies,
savings and loan institutions, and credit unions.
• The Department of Justice developed and
implemented a "significant referral" tracking
system. For this purpose, a criminal referral is
considered "significant" if the dollar amount of
the suspected violation exceeds $200,000, the
suspected offense involves insider abuse by senior officials, or the violation involves, in the
opinion of Board staff, activities or practices that
affect the integrity of the supervisory process or
otherwise have nationwide implications. Each
significant referral received by the Federal Reserve System is forwarded to the Fraud Section
of the Department of Justice for tracking and
special attention.
• As a complement to these efforts, the Enforcement Section of the Board's Division of
Banking Supervision and Regulation developed
and implemented an automated system to monitor and track all of the Federal Reserve criminal
referrals. Complete access to the Board's criminal referral recordkeeping system is available to
all the agencies comprising the Working Group.
• The members of the Working Group developed and distributed lists of key persons to be
contacted at the local FBI offices, U.S. Attorney's offices, Federal Reserve Banks, and all
district offices of the Comptroller of the Currency, the Federal Deposit Insurance Corporation,
and the Federal Home Loan Bank Board on
matters relating to criminal referrals and bankrelated insider abuse and fraud. These lists provide important information for the staffs of the
agencies that are reponsible for criminal referral
and follow-up.
• The examiner training programs sponsored
by the Federal Financial Institutions Examination Council have been expanded to include
extensive instruction in the detection and investigation of insider abuse and misconduct within
financial institutions. In addition, the members
of the Working Group jointly sponsor whitecollar crime seminars with the FBI.
• At the urging of the Working Group, the
to Congress
651
Attorney General called upon each U.S. attorney
to intensify his or her efforts in bank fraud
enforcement. In a memorandum distributed in
February 1987, the Attorney General asked all
U.S. attorneys to prepare inventories of bank
fraud cases involving more than $100,000 that are
pending prosecutive decision or action, to make
prompt prosecutive determinations in those cases ready for decision, and to assign the needed
personnel to complete the investigation of open
cases with the goal of indictment or declination
within nine months.
As part of this overall effort, the Federal
Reserve Board has attempted to improve its
communication and coordination with the enforcement agencies in this all-important area. I
believe that we have made considerable progress
in strengthening our working relationships with
the Department of Justice and the FBI at both
the federal and the local levels. There is also
now, I believe, a better mutual understanding of
the procedures and responsibilities of the federal
financial institution supervisory agencies and the
federal law enforcement agencies.
Besides these interagency efforts, the Board
has sought to enhance its supervisory and enforcement activities regarding insider abuse and
misconduct. This effort is reflected in an increase
in the number of formal enforcement actions
taken by the Board. In the period 1981-82, the
Federal Reserve System averaged 42 enforcement actions per year; from 1984-86, the average
number of enforcement actions had increased to
177. These figures include actions against state
member banks, bank holding companies, and
Edge act corporations. Moreover, during this
period, there has been a significant increase in
the number of enforcement orders addressing
improper or abusive actions of bank officials.
This increase in enforcement actions has occurred across the Board—involving civil money
penalties and fines, cease and desist orders, and
suspension and removal proceedings against officers and directors.
Board staff members are also working with
their counterparts at the other federal financial
institution regulatory agencies to develop a joint
legislative proposal for amending the agencies'
enforcement statutes. The purpose of the proposal would be to clarify the agencies' authority
to obtain reimbursement from individuals who
652
Federal Reserve Bulletin • August 1987
violate applicable banking laws; broaden the
agencies' powers to issue cease and desist orders; strengthen removal procedures; and codify
existing interpretations of the Right to Financial
Privacy Act. We believe that these changes
would strengthen the agencies' ability to address
bank fraud and insider dealings, and it is our
hope that a proposal will be ready soon for
referral to the Congress.
DOMESTIC
REGULATORY
ACTIVITIES
To conclude my testimony, let me describe the
range of our domestic activities to fight money
laundering in U.S. banks. First, the Federal
Reserve provides monthly reports on currency
flows for several government agencies. These
reports supply data on currency sent into and out
of each of the 37 Federal Reserve offices. The
purpose of the report is to establish payment
patterns throughout the United States so that
marked deviations in normal patterns can be
identified and enforcement resources more efficiently deployed.
In addition, Federal Reserve Banks provide
currency, shipping, and receiving data to government agencies covering cash flows between the
Federal Reserve and a particular depository institution that is ordering or depositing cash. That
information is useful also in establishing marked
deviations in normal depositing and ordering
patterns. The Federal Reserve is fully cooperative in responding to any requests for data of this
type.
EXAMINATIONS
The Board believes that the most effective way
to ensure that banks are meeting the recordkeeping and reporting requirements of the Bank Secrecy Act is to conduct on-site examinations.
The Federal Reserve has developed detailed
examination procedures in this area and has held
special training sessions for examiners as well as
for bankers. It is our policy to review compliance
with the Bank Secrecy Act at each examination
of a state member bank or Edge act corporation.
In 1986, 844 such examinations were conducted,
and through the first quarter of 1987 an additional
227 examinations were completed. The number
and intensity of our reviews of currency reporting requirements have increased steadily in the
past five years.
During the period covered by these examinations, deficiencies were discovered in 256 banks.
These deficiencies included failure to file currency transaction reports, filing incomplete or inaccurate currency transaction reports, improper
maintenance of exemption lists, and poor recordkeeping practices. In all cases, the banks have
been required to initiate corrective action and in
16 cases the violations resulted in our forwarding
details to the Justice Department for further
review. Of course, as a matter of policy, every
violation is reported to the Department of Treasury on a quarterly basis.
While considerable effort has been expended
in recent years to ensure that adequate and indepth examinations are being conducted, the
Federal Reserve reviews on a regular basis its
practices and procedures in an effort to strengthen its oversight activities. In addition, as already
noted, the Federal Reserve actively participates
in the Bank Secrecy Act Interagency Working
Group that is chaired by the Treasury Department. This working group has developed new
procedures that are designed to assist in detecting violations of law. These procedures are currently in the process of being integrated into our
examination instructions.
REGULATION
Pursuant to the Anti-Drug Abuse Act of 1986, the
federal banking agencies have developed regulations that require banks to establish and maintain
procedures to ensure compliance with the Bank
Secrecy Act. The Federal Reserve published its
regulations for this purpose as amendments to
Regulation H on January 27, 1987. These amendments require banks to implement a written
program that must be approved by the bank's
directors to assure compliance with the recordkeeping and reporting requirements of the Bank
Secrecy Act. The compliance program must, at a
minimum, include four elements: (1) a system of
internal controls; (2) independent testing for
compliance; (3) designation of individual(s) to be
responsible for compliance; and (4) appropriate
training of employees.
Statement
Noncompliance with this regulation will result
in the issuance of a cease and desist order.
Although no such orders have yet been issued
based on this recently published regulation, the
Board has included requirements to strengthen
compliance with the Bank Secrecy Act in other
formal supervisory actions. Between 1980 and
1986, the Board or the Reserve Banks entered
into 165 enforcement orders or agreements with
state member banks. Provisions requiring corrective action relative to the Bank Secrecy Act
were included in 25 of these enforcement orders.
IND US TR Y ED UCA TION
Besides focusing on strengthening regulations
and examining procedures, efforts have been
directed at educating banks and the public on the
requirements of the Bank Secrecy Act and on
Federal Reserve policies and procedures regarding currency reporting. Board staff members
have participated in seminars and programs intended to educate bankers about the Bank Secrecy Act, especially as it relates to the Regulation
H amendments and the requirements for currency reporting. We believe that these seminars
have been particularly helpful and have achieved
a substantial degree of participation among bank
managers and compliance personnel. Regional
programs conducted through our District banks
have also provided opportunities for bank compliance officers to discuss issues and to ask
questions relating to the Bank Secrecy Act.
To provide assistance and guidance for state
member banks in developing compliance programs, the Federal Reserve has developed and
issued guidelines and sample documentation.
These materials have been widely distributed
and, we understand, have been particularly useful to banking organizations in developing compliance programs.
APPLICATIONS
Any banking organization or bank holding company making application to the Federal Reserve
receives a careful scrutiny to determine whether
the organization is in compliance with the currency recordkeeping and reporting requirements
to Congress
653
of the Bank Secrecy Act. When violations exist,
procedures require that a thorough analysis be
performed that looks carefully at the nature of
the violations, efforts taken by the Bank to cure
the deficiencies, and procedures developed to
prevent any future occurrence. Applicants are
required to provide detailed responses on the
cause of the violations and to submit copies of
their compliance programs, and procedures, and
their related internal audit reports. Normal processing of any application is suspended until all
questions relating to Bank Secrecy Act compliance are fully resolved. From the beginning of
1985 through May 1987, 125 applications involved issues relating to Bank Secrecy Act compliance. In 25 of these cases, resolution of the
compliance problems resulted in a delay in the
processing of the application beyond the normal
60-day period.
Those cases that involve serious issues of
noncompliance and that cannot be resolved by
furnishing additional information may require a
special examination. These examinations are
conducted either by the Federal Reserve or by
the regulatory agency responsible for the primary supervision of the applicant banking organization. No action is taken on any application
until satisfactory compliance is demonstrated
and any associated issues are resolved. An ongoing investigation by any law enforcement agency, would also suspend processing of the application.
CONCLUSIONS
The Federal Reserve shares this committee's
concern that banking organizations not be used
to launder funds or participate in other illegal or
improper activities. To this end, we have devoted considerable effort and resources to monitor
compliance of state member banks with the Bank
Secrecy Act and the Anti-Drug Abuse Act of
1986. We have tightened our examination procedures, put in place policies for carefully reviewing a bank's compliance record at the time an
application is made, and taken steps to ensure
that criminal referrals are made in a timely
fashion with appropriate follow-up. The Federal
Reserve has also contributed to banker educational programs and provided guidance to bank-
654
Federal Reserve Bulletin • August 1987
ing organizations for complying with the Bank
Secrecy Act. Finally, we are pursuing cooperative efforts on the international level that we
hope will heighten awareness of the need to
strengthen supervisory and enforcement activities worldwide.
Despite these intense efforts, we recognize
that we must remain vigilant and continue our
efforts to improve compliance with the Bank
Secrecy Act. The Federal Reserve intends to
continue to place strong emphasis on its oversight responsibilities for Bank Secrecy Act compliance and to contribute fully to efforts to eliminate money laundering.
•
655
Announcements
STATEMENT BY CHAIRMAN VOLCKER ON
THE DEATH OF ARTHUR F. BURNS
Paul A. Volcker, Chairman of the Federal Reserve Board, issued on June 26,1987, the following statement on the passing of Arthur F. Burns:
Arthur Burns was a staunch supporter of the Federal Reserve as an institution and a firm friend of many
of us within it. We have enormously benefited from
both that support and that friendship. He will be
honored in our memory.
Arthur first came to the Federal Reserve in 1970 as
Chairman of the Board of Governors. He was then at
an age that, for most men, might be considered a
normal time for retirement. He had great vigor and
brought to his new position force of personality,
intellectual vigor, and physical endurance that had a
profound influence throughout the institution and on
U.S. economic policy for eight years.
Arthur without doubt saw those active " F e d " years
as a culmination of a career already distinguished by
promising studies of the business cycle, by large
contributions to the teaching and the profession of
economics at Columbia University and the National
Bureau of Economic Research, and by public service
as President Eisenhower's first Chairman of the Council of Economic Advisers, and as Counselor to President Nixon, whom he had long advised informally. It
was a measure of the breadth and strength of the man
that in his mid-70s he took on a key diplomatic
assignment, serving with great distinction as Ambassador to the Federal Republic of Germany.
MEETING OF CONSUMER
COUNCIL
ADVISORY
The Federal Reserve Board announced that its
Consumer Advisory Council met on June 25 and
26 in sessions open to the public.
The Council's function is to advise the Board
on the exercise of the Board's responsibilities
under the Consumer Credit Protection Act and
on other matters on which the Board seeks its
advice.
NOMINATIONS SOUGHT FOR
APPOINTMENTS TO
CONSUMER ADVISORY COUNCIL
The Federal Reserve Board announced on June
25, 1987, 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, 1987.
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,
past and present positions held, and special
knowledge, interests, or experience related to
consumer credit or other consumer financial
services.
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. Nominations should be
received by August 31, 1987.
DIRECT DEPOSIT OF SOCIAL SECURITY
PAYMENTS IN THE UNITED KINGDOM
The Federal Reserve and the Social Security
Administration announced on June 26, 1987, the
beginning of direct electronic deposit of Social
Security benefit payments in the United Kingdom.
About 5,300 of the United Kingdom's 14,000
recipients of U.S. benefits have had their June
benefit payment electronically deposited into
their bank accounts. This marks the first time
that the U . S . government has made direct deposit payments overseas.
The new system assures prompt payment of
656
Federal Reserve Bulletin • August 1987
benefits on the same day as U.S. recipients,
normally the third day of the month, and obviates the process of changing U.S. dollars into
British pounds sterling. Direct deposit is also a
more efficient means of payment delivery than
paper checks.
The start of this new international direct deposit program culminates a two-year, multiagency effort by the Social Security Administration, Federal Reserve Bank of New York, Bank
of England, British Automated Clearing Services, Ltd., and the Departments of Treasury
and State to pay overseas beneficiaries electronically rather than by paper check. This is the first
time that the Federal Reserve has transformed
the U.S. automated clearinghouse (ACH) format
into that of another country to transfer payments
to foreign financial institutions.
Although implementation plans have not been
completed, the direct deposit of Social Security
payments to beneficiaries residing in other countries, such as Canada and West Germany, is
under study.
AMENDMENT
TO REGULATION
Y
The Federal Reserve Board announced on June
12, 1987, approval of an amendment to Regulation Y implementing amendments to the Change
in Bank Control Act required by the Anti-Drug
Abuse Act of 1986.
The Anti-Drug Abuse Act of 1986 amended the
Change in Bank Control Act (CBCA) to require
federal banking agencies to publish notice of any
filing made under the CBCA to acquire control of
a bank or a bank holding company.
The Anti-Drug Abuse Act requires the banking
agencies to publish the name of each party
acquiring control of a bank or a bank holding
company, as well as the name of the target
institution, and to solicit public comment on the
proposed acquisition, in particular from persons
in the relevant local area.
PROPOSED
ACTION
The Federal Reserve Board requested comment
by July 6, 1987, on a revised proposal to charge
assessments and fees for certain supervisory
activities. The Board had previously requested
comments on a specific schedule of assessments
and fees for the supervision of Edge act corporations and for processing various applications
submitted to the Federal Reserve System by
banks, bank holding companies, and other companies and individuals.
The Board is now seeking comment on a
revised proposal that would charge an annual
assessment for inspection and supervision of the
parent company and nondepository subsidiaries
of bank holding companies as well as a significantly reduced fee schedule for supervising Edge
act corporations and for processing applications.
While the Board is still considering whether to
begin charging for certain supervisory activities,
the Board seeks comment on this revised approach of recovering a smaller percentage of
costs over a broader range of services.
CHANGES
IN BOARD
STAFF
The Board of Governors announced the following official staff actions effective June 17, 1987:
(1) Change of title of James L. Kichline from
Director to Staff Director, Research and Statistics; (2) change of title of William Taylor from
Director to Staff Director, Banking Supervision
and Regulation; (3) change of title of Edwin M.
Truman from Director to Staff Director, International Finance; (4) transfer and title change of
Donald L. Kohn from Deputy Staff Director in
the Office of Staff Director for Monetary and
Financial Policy to Deputy Director, Division of
Research and Statistics (Monetary Policy and
Financial Markets); and (5) transfer of Normand
R.V. Bernard to the Office of Board Members.
These assignments will result in the dissolution
of the Office of Staff Director for Monetary and
Financial Policy.
The Board announced the following additional
staff actions:
James L. Kichline, Staff Director, Division of
Research and Statistics, resigned, effective July
31, 1987.
Lynn Smith Fox was appointed Special Assistant to the Board for Congressional Liaison in
the Office of Board Members, effective July 6,
1987.
Announcements
657
David L. Williams was appointed Assistant
Director in the Division of Support Services,
effective July 6, 1987.
SYSTEM MEMBERSHIP.
STATE
BANKS
Ms. Fox came to the Board in January 1986
after several years on the staff of the House
Subcommittee on Economic Stabilization. She
holds a B.A. from Smith College and an M.B.A.
from George Washington University.
Mr. Williams came to the Board in 1973 and
was promoted to Assistant to the Director of the
Division of Support Services in January 1987.
The following banks were admitted to membership in the Federal Reserve System during the
period June 1 through June 30, 1987:
Ohio
Dayton
Virginia
Richlands
ADMISSION
OF
Trustcorp Company
First Virginia
Bank—Clinch Valley
659
Legal Developments
AMENDMENT
TO REGULATION
Y
The Board of Governors is amending its Regulation Y,
Bank Holding Companies and Change in Bank Control, to implement certain amendments to the Change
in Bank Control Act. Under the final rule, notificants
under the Act are required to publish, in a newspaper
of general circulation in communities where the bank
or bank holding company to be acquired is located, an
announcement of the proposed acquisition no later
than 10 calendar days after the notice has been accepted by the appropriate Federal Reserve Bank.
Effective June 12, 1987, the Board amends
12 C.F.R. Part 225 as follows:
Part 225—Bank Holding Companies
Change in Bank Control
and
1. The authority citation for Part 225 continues to read
as follows:
Authority: 12 U.S.C. 18170X13), 1818, 1843(c)(8),
1844(b), 3106, 3108, 3907 and 3909.
2. Section 225.43(a) is revised to read as follows:
Section 225.43—Procedures for Filing,
Processing, Publishing, and Acting on Notices
(a)(1) Filing notice. A notice required under this
subpart shall be filed with the appropriate Reserve
Bank and shall contain the information required by
paragraph 6 of the Change in Bank Control Act
(12 U.S.C. 1817(j)(6)), or prescribed in the designated
Board form. With respect to personal financial statements required by paragraph 6(B) of the Change in
Bank Control Act, an individual may include a
statement of assets and liabilities as of a date within
90 days of filing the notice, a brief income summary,
and a description of any subsequent material
changes, subject to the authority of the Reserve
Bank or the Board to require additional information.
(2) Acceptance of notice. The 60-day notice period
specified in section 225.41 of this subpart shall
commence on the date all required information is
received by the appropriate Reserve Bank or the
Board. The Reserve Bank shall notify the person or
persons submitting a notice under this subpart of the
date all such required information is received and
the notice is accepted for processing.
(3) Publication.
(i) Newspaper announcement. A person(s) filing a
notice under this subpart shall publish, in a form
prescribed by the Board, an announcement soliciting public comment on the proposed acquisition.
The announcement shall be published in a newspaper of general circulation in the community in
which the head office of the state member bank to
be acquired is located or, in the case of a proposed
acquisition of a bank holding company, in the
community in which its head office is located and
in the community in which the head office of each
of its subsidiary banks is located. The announcement shall be published no earlier than 10 calendar days prior to the filing of the notice with the
appropriate Reserve Bank and no later than 10
calendar days after acceptance of the notice by
the Reserve Bank. A copy of the announcement
and the publisher's affidavit of publication shall be
provided to the appropriate Reserve Bank.
(ii) Contents of newspaper announcement. The
newspaper announcement shall state:
(A) the name of each person identified in the
notice as a proposed acquiror of the bank or
bank holding company and the percentage of
shares proposed to be acquired;
(B) the name of the bank or bank holding
company to be acquired, including, in the case
of a bank holding company, the name of each of
its subsidiary banks; and
(C) a statement that interested persons may
submit comments on the notice to the Board or
the appropriate Reserve Bank for a period of 20
days or such shorter period as may be provided
pursuant to paragraph (a)(3)(v) of this section.
(iii) Federal Register announcement. The Board
will, upon filing of a notice under this subpart,
publish announcement in the Federal Register of
receipt of the notice. The Federal Register announcement will contain the information required
under paragraphs (a)(3)(ii)(A) and (a)(3)(ii)(B) of
this section and a statement that interested persons may submit comments on the proposed
acquisition for a period of 15 days or such shorter
660
Federal Reserve Bulletin • August 1987
period as may be provided pursuant to paragraph
(a)(3)(v) of this section. The Board may waive
publication in the Federal Register if the Board
determines that such action is appropriate.
(iv) Delay of publication. The Board may permit
delay in the publication required under paragraphs (a)(3)(i) and (a)(3)(iii) if the Board determines, for good cause shown, that it is in the
public interest to grant such a delay. Requests for
delay of publication may be submitted to the
appropriate Reserve Bank.
(v) Shortening or waiving notice. In circumstances requiring prompt action, the Board may
shorten the public comment period required under
this paragraph. The Board may also waive the
newspaper publication and solicitation of public
comment requirements of this paragraph, or it
may act on a notice before the expiration of a
public comment period, if it certifies in writing
that disclosure of the notice, solicitation of public
comment, or delay until expiration of the public
comment period would seriously threaten the
safety or soundness of the bank or bank holding
company to be acquired.
(4) Consideration of public comments. In acting
upon a notice filed under this subpart, the Board
shall consider all public comments received in writing within the period specified in the newspaper or
Federal Register announcement, whichever is later.
At the Board's option, comments received after this
period may, but need not, be considered.
(5) Standing. No person (other than the acquiring
person) who submits comments or information on a
notice filed under this subpart shall thereby become
a party to the proceeding or acquire any standing or
right to participate in the Board's consideration of
the notice or to appeal or otherwise contest the
notice or the Board's action regarding the notice.
(B) any material information submitted is substantially inaccurate;
(C) it is unable to complete the investigation of
an acquiring person because of inadequate
cooperation or delay by that person; or
(D) additional time is needed to investigate and
determine that no acquiring person has a record
of failing to comply with the requirements of the
Bank Secrecy Act, subchapter II of Chapter 53
of Title 31, United States Code.
(iii) If the Board extends the time period under
this paragraph, it shall notify the acquiring person^) of the reasons therefor and shall include a
statement of the information, if any, deemed
incomplete or inaccurate.
4. Section 225.43(d) is revised to read as follows:
(d)(1) Investigation and report. After receiving a notice under this subpart, the Board or the appropriate
Reserve Bank shall conduct an investigation of the
competence, experience, integrity, and financial
ability of each person by and for whom an acquisition is to be made. The Board shall also make an
independent determination of the accuracy and
completeness of any information required to be
contained in a notice under paragraph (a) of this
section. In investigating any notice accepted under
this subpart, the Board or Reserve Bank may solicit
information or views from any person, including any
bank or bank holding company involved in the
notice, and any appropriate state, federal, or foreign
governmental authority.
(2) The Board or the appropriate Reserve Bank shall
prepare a written report of its investigation, which
shall contain, at a minimum, a summary of the
results of the investigation.
3. Section 225.43(c)(2) is revised to read as follows:
Modification
(c) * * *
(2) Extensions of time period.
(i) The Board may extend the 60-day period in
paragraph (c)(1) of this section for an additional 30
days by notifying the acquiring person(s).
(ii) The Board may further extend the period
during which it may disapprove a notice for two
additional periods of not more than 45 days each if
the Board determines that:
(A) any acquiring person has not furnished all
the information required under paragraph (a) of
this section;
to Federal Reserve ACH
Service
The Board of Governors has modified the procedure
used by Federal Reserve Banks to recover the value of
float generated in automated clearing house (ACH)
operations due to nonstandard holiday closings by
eliminating the exception procedure for institutions
that object to receiving debits on mandatory nonstandard holidays.
The Board's policy on float recovery procedures
used by Reserve Banks when processing ACH debits
on days when a receiving institution is closed due to a
mandatory nonstandard holiday states that if a receiver of an ACH debit transaction is closed on a nonstan-
Legal Developments
661
dard holiday, the Reserve Bank will debit the receiver's account as though the institution were open or
assess the cost of the float through an explicit charge
or an as-of adjustment. If, after consultation with its
Reserve Bank, an institution still objects to receiving
debits on mandatory nonstandard holidays, the Reserve Bank will not charge the institution on such
days, but will use the preexisting procedures for
recovering the ACH float that results. (Adopted by the
Board on June 12, 1986, 51 Fed. Reg. 21,421, effective
April 1, 1987).
On May 14, 1987, NACHA, the national trade
association for depository institutions participating in
the ACH service, adopted a rule requiring its member
institutions to accept debit charges to their reserve or
clearing accounts for debit transactions on nonstandard holidays. Under Reserve Bank operating circulars, NACHA rules are incorporated by reference and
therefore apply to all ACH participants.
Because industry practice appears to call for payment of ACH debit on mandatory nonstandard holidays, the Board has determined to modify its policy to
conform with the rule adopted by NACHA. As a
result, the exceptions procedure no longer applies.
Effective July 2, 1987.
Bank is a state chartered, stock savings bank, the
accounts of which are insured by the Federal Savings
and Loan Insurance Corporation ("FSLIC"). Bank
has adopted a plan by which it will withdraw its
insurance of deposits from the FSLIC fund and convert instead to Federal Deposit Insurance Corporation
("FDIC") insurance.
Since Bank, at the time of acquisition by Applicant,
will be a state chartered bank that accepts demand
deposits and makes commercial loans, Bank is a
"bank" for purposes of the Act, and Applicant properly has applied to acquire Bank under section 3 of the
Act, which governs the acquisition of banks by bank
holding companies.
Applicant, with deposits of $7 billion, is the second
largest commercial banking organization in Connecticut, controlling 25.8 percent of the total deposits in
commercial banks in the state. 1 After conversion to
FDIC insurance, Bank will control deposits of $76.7
million, representing less than 1 percent of the total
deposits in commercial banking organizations in the
state. 2 Upon consummation of this proposal, Applicant will continue to be the second largest commercial
banking organization in Connecticut, with no significant change in its market share or deposit size. Consummation of this proposal therefore would not have
any significant adverse effect upon the concentration
of banking resources in the state.
ORDERS ISSUED UNDER BANK
HOLDING
COMPANY ACT, BANK MERGER ACT, BANK
SERVICE CORPORATION ACT, AND FEDERAL
RESERVE ACT
Bank is located in the Hartford banking market,
where Applicant also competes. 3 In the Hartford
banking market, Applicant is the second largest of 17
commercial banking organizations, controlling deposits of $2.5 billion, which represents 35.8 percent of
total deposits in commercial banks in the market. 4
Upon conversion, Bank will be the 13th largest of 18
commercial banking organizations in Hartford, controlling deposits of $48.5 million, representing less
than 1 percent of the market share. Following acquisition of Bank, Applicant would remain the second
largest commercial banking organization in the Hartford banking market, controlling 36.5 percent of the
market's total commercial bank deposits. The Herfin-
Orders Issued Under Section 3 of the Bank
Holding Company Act
Hartford National Corporation
Hartford, Connecticut
Order Approving Acquisition of a Bank
Hartford National Corporation, Hartford, Connecticut,
a bank holding company within the meaning of the Bank
Holding Company Act ("Act"), 12 U.S.C. § 1841
et seq., has applied for the Board's approval under
section 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to
acquire the Savings and Loan Association of Southington, Southington, Connecticut ("Bank").
Notice of the application, affording interested persons an opportunity to submit comments, has been
given in accordance with section 3(b) of the Act, 52
Federal Register 7,487 (1987). The time for filing
comments has expired, and the Board has considered
the application and all comments received in light of
the factors set forth in section 3(c) of the Act.
1. State deposit data are as of December 31, 1986.
2. Deposit data for Bank are calculated on a commercial banks only
basis, based on financial information reported prior to Bank's conversion.
3. The Hartford banking market is approximated by the Hartford
Rand McNally Area ("RMA"), minus the Windham County township
of Windham and the Tolland County township of Mansfield, plus the
Windham County township of Ashford, the Hartford County township
of Hartland, the Tolland County township of Union, and the remaining portions of Plymouth and East Haddam not already included in the
RMA.
4. Market data are as of June 30, 1985.
662
Federal Reserve Bulletin • August 1987
dahl-Hirschman Index ("HHI") 5 would increase by
only 8 points to 3079, and the market would remain
moderately concentrated. Consummation of this proposal therefore is unlikely to substantially lessen competition in the Hartford banking market.
Based upon a review of all facts of record, the Board
has determined that the financial and managerial resources of Applicant, its subsidiary banks and Bank
are consistent with approval. Considerations relating
to the convenience and needs of the communities to be
served also are consistent with approval of this proposal.
The Board notes that this application involves the
acquisition of a bank that results from conversion of a
non-failing, FSLIC-insured state savings bank. The
acquisition proposed here, however, does not fall
within the scope of the Board's policy and rulings
regarding acquisitions of thrift institutions under section 4 of the Act6 or the provisions of the 1982 Garn-St
Germain Depository Institution Act regarding acquisitions of thrift institutions. Upon its acquisition by
Applicant, Bank will accept demand deposits and
engage in commercial lending, and will be subject to all
the banking standards of the Act.
In addition, the Board expects that Applicant will
comply with all state and federal requirements necessary for consummation of the acquisition, and the
Board's approval of this application under the Act is
not intended to preempt any such requirements. 7 The
Board has previously stated that its approval of transactions under section 3 of the Act does not relieve an
applicant or the bank involved of the responsibility to
obtain approval under other federal or state laws and
regulations and does not shield an applicant from the
consequences of violations of other laws.8
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. This transaction shall not be
5. 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 over 1800 is considered highly concentrated, and
the Department is likely to challenge a merger that increases the HHI
by more than 50 points unless other factors indicate that the merger
will not 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 facts indicating an
anticompetitive effect) unless the post-merger HHI is at least 1800 and
the merger increases the HHI by at least 200 points.
6. D.H.
Baldwin
Company,
6 3 FEDERAL RESERVE BULLETIN 2 8 0
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Boston, acting pursuant to delegated authority.
By order of the Board of Governors, effective
June 1, 1987.
Voting for this action: Chairman Volcker and Governors
Johnson, Seger, Angell, Heller, and Kelley.
WILLIAM W .
[SEAL]
KeyCorp
Albany, N e w York
Key Bancshares of N e w York, Inc.
Albany, N e w York
Order Approving Acquisition of a Bank
KeyCorp and Key Bancshares of New York, Inc.
("Key New York"), both of Albany, New York
("Applicants"), bank holding companies within the
meaning of the Bank Holding Company Act
(12 U.S.C. § 1841 et seq.) ("BHC Act") have applied
for the Board's approval under section 3(a)(3) of the
BHC Act, (12 U.S.C. § 1842(a)(3)), to acquire all of
the voting shares of Key Bank USA, National Association, Albany, New York ("Bank").
Notice of the application, affording opportunity for
interested persons to submit comments, has been
given in accordance with section 3(b) of the BHC Act
(52 Federal Register 6,218 (1987)). The time for filing
comments has expired and the Board has considered
the application and all comments received in light of
the factors set forth in section 3(c) of the BHC Act
(12 U.S.C. § 1842(c)).
KeyCorp is the 59th largest commercial banking
organization in the United States, with 13 bank subsidiaries held through four intermediate bank holding
companies in Maine, Alaska, Oregon and New York.
Key New York is the 12th largest commercial banking
organization in New York with 6 bank subsidiaries.
Key New York controls total deposits of $1.9 billion,
representing 2.1 percent of the total deposits in commercial banking organizations in the state. 1
(1977).
7. The Board may not approve an application that would result in a
violation of federal or state law. Whitney National Bank v. Bank of
New Orleans, 379 U.S. 411 (1964).
8.
The
One
Bancorp,
(1987); SafraCorp,
73
Comerica Incorporated
73
FEDERAL
FEDERAL
RESERVE
BULLETIN
RESERVE BULLETIN
(Order dated May 4, 1987).
137
55,
WILES
Secretary of the Board
135
(1987);
1. State deposit data are as of December 31, 1986.
Legal Developments
Bank is a newly chartered national bank formed to
engage in traditional retail bank lending and deposit
taking activities.2 Bank will offer its services through
direct response marketing nationwide, by mail order
and by advertising in newspapers and magazines.
Bank will direct its marketing efforts to customers in
geographic areas not served by Applicants' existing
subsidiary banks. Consummation of the proposed
transaction therefore would not result in any significant adverse effects on existing or potential competition or increase the concentration of banking resources in any relevant area.
The financial resources and future prospects of
Applicants, their subsidiary banks, and Bank are considered satisfactory and consistent with approval.
In its evaluation of Applicants' managerial resources, the Board has considered certain violations of
the Currency and Foreign Transactions Reporting Act
("CFTRA") and the regulations issued thereunder by
Applicants' subsidiary banks. 3 In this regard, the
Board notes that Applicants brought these matters to
the attention of appropriate supervisory authorities
after CFTRA violations were discovered through an
internal audit program. Applicants also have cooperated fully with the Department of Treasury and law
enforcement agencies throughout the investigative
process. In addition, Applicants have undertaken a
comprehensive remedial program to correct these violations and to prevent similar violations from occurring in the future. Specifically, Applicants each have
filed corrective currency transaction
reports
("CTRs"); appointed a senior officer responsible for
ensuring compliance with CFTRA reporting requirements; instituted intensive internal training for bank
personnel regarding compliance with the CFTRA;
established a new computer software system allowing
for the centralization of exempt list computation and
the monitoring of CTRs; and required all bank personnel to participate in CFTRA retraining courses at least
once a year. Finally, Applicants have advised the
Board that they have reached agreement with the
Department of Treasury on a settlement of all outstanding CFTRA violations.
Based on the foregoing and all of the facts of record,
the Board concludes that the managerial resources of
Applicants, their subsidiary banks, and Bank are consistent with approval. Considerations related to the
convenience and needs of the communities to be
served also are consistent with approval.
2. Bank received preliminary charter approval from the Office of
the Comptroller of the Currency on February 11, 1987.
3. 31 U.S.C. § 5311, et seq.; 31 C.F.R. § 103.
663
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, 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
the Federal Reserve Bank of New York, acting pursuant to delegated authority.
By order of the Board of Governors, effective
June 15, 1987.
Voting for this action: Chairman Volcker and Governors
Johnson, Seger, Heller, and Kelley. Absent and not voting:
Governor Angell.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
KeyCorp
Albany, N e w York
Key Pacific Bancorp
Anchorage, Alaska
Order Approving Acquisition of a Bank
KeyCorp, Albany, New York and Key Pacific Bancorp, Anchorage, Alaska ("Key Pacific") (together
"Applicants"), bank holding companies within the
meaning of the Bank Holding Company Act
(12 U.S.C. § 1841 et seq.) ("BHC Act") have applied
for the Board's approval under section 3(a)(3) of the
BHC Act (12 U.S.C. § 1842(a)(3)), to acquire all of the
voting shares of Seattle Trust & Savings Bank, Seattle, Washington ("Bank").
Notice of the application, affording opportunity for
interested persons to submit comments, has been
given in accordance with section 3(b) of the Act (52
Federal Register 17,334 (1987)). The time for filing
comments has expired, and the Board has considered
the application and all comments received in light of
the factors set forth in section 3(c) of the BHC Act
(12 U.S.C. § 1842(c)).
Applicants' proposal represents the first direct acquisition of a Washington banking organization by an
Alaska bank holding company; it also represents the
first indirect acquisition by a New York bank holding
company. The Board is prohibited under section 3(d)
of the BHC Act, 12 U.S.C. § 1842(d) ("Douglas
Amendment"), from approving any application by a
bank holding company seeking to acquire a bank or
bank holding company outside the applicant's home
664
Federal Reserve Bulletin • August 1987
state, 1 unless the state where the target bank is located
has specifically authorized the acquisition, "by language to the effect and not merely by implication."
KeyCorp's home state is New York and Key Pacific's
home state is Alaska.
Effective July 1, 1987, the statute laws of Washington2 will allow an out-of-state bank holding company
to acquire a bank located in Washington if:
(1) the bank or banking association to be acquired
has conducted business for at least three years;
(2) the laws of the state where the bank holding
company acquiror principally conducts its operations would allow a Washington bank holding company to acquire more than 5 percent of the voting
stock, or all or substantially all of the assets, of a
bank in that state and to operate the acquired bank
on no less favorable terms and conditions than are
imposed under Washington law; and
(3) the state supervisor of banking has determined
that the laws of Washington and of the acquiring
banking organization's home state are reciprocal.
Based on its review of the relevant Washington,
New York3, and Alaska4 statutes, the Board has
determined that New York and Alaska laws would
permit a Washington bank holding company to acquire
a bank in those states. The Board therefore concludes
that the proposed acquisition satisfies the requirements of Washington's interstate banking statute, and
that New York and Alaska holding companies, such as
Applicants, may acquire a bank located in Washington, such as Bank. In addition, by letter dated April 3,
1987, the Supervisor of Banking of the State of Washington has indicated that the requirements of Alaska
and New York interstate banking laws are reciprocal
with those of Washington, and that Applicants' proposal would be authorized under Washington law.
Accordingly, the Board concludes that approval of
Applicants' proposal to acquire Bank is not barred by
the Douglas Amendment.
KeyCorp is the 59th largest commercial banking
organization in the United States, with 13 bank subsidiaries in Maine, Alaska, Oregon, and New York that
control $9.1 billion in deposits. Key Pacific is the
fourth largest of the thirteen commercial banking
1. A bank holding company's home state for purposes of the
Douglas Amendment is that state in which the total deposits of its
banking subsidiaries were largest on July 1, 1966, or on the date it
became a bank holding company, whichever is later. 12 U.S.C.
§ 1842(d).
2. Revised Code of Washington §§ 30.04.232(b)dM3) (1987).
3. N.Y.S. Banking L. §§ 142-bl(a), (b) (1987).
4. Alaska Statutes §§ 06.05.235(e)-(g) (1986).
organizations in Alaska with two bank subsidiaries.
Key Pacific controls total deposits of $502.5 million in
Alaska, representing 12.4 percent of the total deposits
in commercial banking organizations in the state. 5 Key
Pacific has one bank subsidiary in Oregon and is the
third largest of 54 commercial banking organizations in
that state. Key Pacific controls total deposits of $885.7
million in Oregon, representing 6.1 percent of total
deposits in commercial banking organizations in the
state. Bank is the seventh largest of 89 commercial
banking institutions in Washington, controlling deposits of $666.8 million, representing 2.6 percent of the
total deposits in commercial banks in the state. Consummation of this proposal therefore would not have a
significant effect upon the concentration of banking
resources in Alaska, New York or Washington.
Applicants and Bank operate in different banking
markets. Principals of Applicants are not affiliated
with any other depository organizations in any of
those markets. Applicants' proposal therefore would
not result in any adverse effects upon competition in
any relevant market. Accordingly, the Board concludes that competitive considerations under the BHC
Act are consistent with approval.
In its evaluation of Applicants' managerial resources, the Board has considered certain violations of
the Currency and Foreign Transactions Reporting Act
("CFTRA") and the regulations issued thereunder by
Applicants' subsidiary banks. 6 In this regard, the
Board notes that Applicants brought these matters to
the attention of appropriate supervisory authorities
after CFTRA violations were discovered through an
internal audit program. Applicants also have cooperated fully with the Department of Treasury and law
enforcement agencies throughout the investigative
process. In addition, Applicants have undertaken a
comprehensive remedial program to correct these violations and to prevent similar violations from occurring in the future. Specifically, Applicants each have
filed corrective currency transaction
reports
("CTRs"); appointed a senior officer responsible for
ensuring compliance with CFTRA reporting requirements; instituted intensive internal training for bank
personnel regarding compliance with the CFTRA;
established a new computer software system allowing
for the centralization of exempt list computation and
the monitoring of CTRs; and required all bank personnel to participate in CFTRA retraining courses at least
once a year. Finally, Applicants' have advised the
Board that they have reached agreement with the
5. State deposit data are as of December 31, 1986.
6. 31 U.S.C. § 5311, et seq.\ 31 C.F.R. § 103.
Legal Developments
Department of Treasury on a settlement of all outstanding CFTRA violations.
For the foregoing reasons and based upon a review
of all of the facts of record, the Board concludes that
the managerial resources of Applicants are consistent
with approval. The Board also finds that the financial
resources of Applicants, their subsidiaries and Bank
are consistent with approval of this application. Considerations relating to the convenience and needs of
the communities to be served are also consistent with
approval.
Based on the foregoing and other facts of record, the
Board has determined that this application should be
and hereby is approved. 7 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 New York acting pursuant to delegated authority.
By order of the Board of Governors, effective
June 15, 1987.
Voting for this action: Chairman Volcker and Governors
Johnson, Seger, Heller, and Kelley. Absent and not voting:
Governor Angell.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
Mercantile Bankshares Corporation
Baltimore, Maryland
Order Approving Acquisition of a Bank
Mercantile Bankshares Corporation, Baltimore, Maryland, a bank holding company within the meaning of
the Bank Holding Company Act (12 U.S.C. § 1841
7. The National Association of Life Underwriters and the National
Association of Professional Insurance Agents submitted comments
protesting Board approval of this application on the grounds that the
general insurance agency activities conducted by a department of
Bank are prohibited under the amendments to section 4 of the BHC
Act contained in the 1982 Garn-St Germain Depository Institutions
Act. In response to these protests, Applicants have agreed that Bank
will divest or terminate its general insurance agency activities within
two years of consummation of the acquisition, unless during such
period Applicants receive approval pursuant to an application under
section 4(c)(8) of the BHC Act to retain such activities. During this
two-year period or unless authorization is granted pursuant to the
BHC Act for broader activities, Applicants will limit the insurance
agency activities of Bank to the renewal of existing policies and those
credit-related insurance agency activities permitted under section
4(c)(8)(A) of the BHC Act. The Board believes that Applicants'
divestiture commitments adequately address the issues raised by
these protestants.
665
et seq.) ("Act"), has applied for the Board's approval
under section 3 of the Act to acquire The Eastville
Bank, Eastville, Virginia ("Bank").
Notice of the application, affording an opportunity
for interested persons to submit comments, has been
given in accordance with section 3(b) of the Act (52
Federal Register 11,547 (1987)). The time for filing
comments has expired, and the Board has considered
the applications and all comments received in light of
the factors set forth in section 3(c) of the Act.
Applicant is the fifth largest commercial banking
organization in Maryland, controlling total deposits of
$2.4 billion, representing 9.1 percent of the deposits in
commercial banks in the state. 1 Bank is among the
smaller commercial banking organizations in Virginia,
controlling total deposits of $18.5 million, representing
less than 1 percent of the deposits in commercial banks
in the state. Consummation of this proposal would not
have any significant effect upon the concentration of
banking resources in either Maryland or Virginia.
Section 3(d) of the Act, the Douglas Amendment,
prohibits the Board from approving an application by a
bank holding company to acquire a bank located
outside the bank holding company's home state, unless such acquisition is "specifically authorized by the
statute laws of the state in which such bank is located,
by language to that effect and not merely by implication." 2
Applicant's home state is Maryland. The Commonwealth of Virginia has enacted an interstate banking
statute that permits, on a reciprocal basis, the acquisition of a bank in Virginia by a bank holding company
that has its principal place of business located in a
defined region, which includes the state of Maryland,
subject to the approval of the Virginia Commissioner
of Financial Institutions. 3 Maryland has enacted a
regional interstate banking statute similar to that of
Virginia, which permits the acquisition of a Maryland
bank holding company or bank by an institution located in Virginia on a reciprocal basis.
Upon its review of the relevant Virginia and Maryland statutes, the Board has determined that the
Maryland statute satisfies the conditions of the Virginia regional interstate banking statute and that Virginia
has by statute expressly authorized a Maryland bank
1. Deposit data are as of June 30, 1986.
2. A bank holding company's home state for purposes of the
Douglas Amendment is that state in which the total deposits of its
banking subsidiaries were largest on July 1, 1966, or on the date it
became a bank holding company, whichever date is later. 12 U.S.C.
§ 1842.
3. Va. Code Ann. § 6.1-399 (Supp. 1986); Md. Ann. Code art. 5,
§ 1003 (1986).
666
Federal Reserve Bulletin • August 1987
holding company, such as Applicant, to acquire a
Virginia bank or bank holding company, such as
Bank.4 Moreover, the banking commissioners for
Maryland and Virginia have executed a cooperative
agreement for access to records, examinations, and
other information relating to state-chartered banks,
based on a finding of general reciprocity between the
two statutes. Accordingly, based on the above factors,
the Board concludes that the Douglas Amendment
does not prohibit Board approval of this proposal. The
Board's Order is specifically conditioned upon approval of the transaction by the Virginia Commissioner of Financial Institutions.
Applicant and Bank currently operate in different
banking markets. Principals of Applicant are not affiliated with any depository institution in the market in
which Bank operates. The proposal would not result in
any adverse effects upon competition in any relevant
market. Accordingly, the Board concludes that competitive considerations under the Act are consistent
with approval.
In its evaluation of Applicant's managerial resources, the Board has considered certain violations
by Applicant's subsidiary banks of the Currency and
Foreign Transactions Reporting Act ("CFTRA") and
the regulations thereunder. 5 The violations appear to
have been limited in scope, and Applicant has taken
appropriate remedial action to correct such violations
and prevent their reoccurrence. The sufficiency of the
compliance procedures adopted to address the
CFTRA violations at Applicant's subsidiary banks has
been reviewed by examiners from the appropriate
regulatory authorities. The Board also has consulted
with appropriate enforcement agencies, and has considered the banks' past record of overall compliance
with the law, as well as Applicant's stated commitments and programs to comply with CFTRA in the
future. For the foregoing reasons, and based upon a
review of all the facts of record, the Board finds the
managerial resources of Applicant and Bank to be
consistent with approval.
The financial resources and future prospects of
Applicant and Bank are considered satisfactory and
consistent with approval. Considerations relating to
the convenience and needs of the community to be
served are also consistent with approval.
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
4. In that regard, the Board previously has determined that the
Maryland and Virginia statutes are reciprocal in the course of its
approval of the acquisition by a Virginia bank holding company of a
Maryland bank. Bank of Virginia Company, 72 FEDERAL RESERVE
BULLETIN 65 (1986).
5. 31 U.S.C. § 5311 et seq.; 31 C.F.R. § 103.
and hereby is, approved. The acquisition of Bank shall
not be consummated before the thirtieth calendar day
following the effective date of this Order, or later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Richmond
pursuant to delegated authority.
By order of the Board of Governors, effective
June 10, 1987.
V o t i n g for this action: V i c e Chairman J o h n s o n and G o v e r nors S e g e r , H e l l e r , and K e l l e y . A b s e n t and not voting:
Chairman V o l c k e r and G o v e r n o r A n g e l l .
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
N C N B Corporation
Charlotte, North Carolina
Order Approving Acquisition of a Bank
NCNB Corporation, Charlotte, North Carolina, has
applied for the Board's approval pursuant to section
3(a)(3) of the Bank Holding Company Act (12 U.S.C.
§ 1841 et seq.) (the "Act") to acquire NCNB Bank of
Maryland, Baltimore, Maryland ("NCNB Bank"), a
de novo Maryland-chartered trust company. NCNB
Bank is a nonoperating subsidiary that will be merged
with CentraBank, Inc., Baltimore, Maryland, a Maryland-chartered FDIC-insured mutual savings bank.
The resulting bank will be an FDIC-insured state
bank, 1 operating under NCNB Bank's charter with the
name CentraBank.
Notice of the application, affording opportunity for
interested persons to submit comments, has been
published (52 Federal Register 10,162 (1987)). The
time for filing comments has expired, and the Board
has considered all comments received in light of the
factors set forth in section 3(c) of the Act.
Applicant is the largest commercial banking organization in North Carolina, with deposits of $7.7 billion,
representing 22.2 percent of the total deposits in
commercial banks in the state. 2 Applicant also operates banks in Florida, Georgia, South Carolina, and
Virginia. On a consolidated basis, Applicant controls
deposits of $18.6 billion.
1. NCNB Bank filed an application to merge with CentraBank with
the FDIC on March 20, 1987.
2. Deposit data are as of December 31, 1986. Structure data are as
of June 30, 1986.
Legal Developments
CentraBank is the 18th largest commercial bank in
Maryland, with deposits of $226.6 million, representing 0.8 percent of total deposits in commercial banks in
Maryland. Because Applicant does not operate a bank
in Maryland, consummation of this proposal would
have no effect on the concentration of resources in
Maryland.
Section 3(d) of the Act (12 U.S.C. § 1842(d)), the
Douglas Amendment, prohibits the Board from approving an application by a bank holding company to
acquire control of any bank located outside of the bank
holding company's home state 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." 3
Applicant's home state is North Carolina. The statute laws of Maryland authorize the acquisition of a
bank or bank holding company in Maryland by a bank
holding company located in another state in a defined
region, which includes North Carolina as of July 1,
1987, if the laws of that state permit Maryland bank
holding companies to acquire banks and bank holding
companies in that state. 4 North Carolina has enacted a
similar regional interstate banking statute that permits
the acquisition of a North Carolina bank holding
company or bank by an institution located in Maryland.5
The Maryland Bank Commissioner has informed the
Board that the proposal appears to meet the requirements under Maryland law, and, accordingly, the
Commissioner anticipates approving the acquisition.
Based on the foregoing, the Board has determined that
the proposed acquisition is specifically authorized by
the statute laws of Maryland and thus is not prohibited
by the Douglas Amendment. The Board's order is
specifically conditioned upon satisfaction of the state
regulatory approval requirement and the effective date
of the provision of Maryland law that includes North
Carolina within the region.
CentraBank operates in the Baltimore banking market,6 a market in which Applicant does not operate.
Accordingly, consummation of the proposal is not
likely to result in the elimination of any significant
existing competition. In view of the numerous entrants
into the market, the Board concludes that the proposal
would not have any significant adverse effect on
probable future competition.
3. A bank holding company's home state is the state in which the
operations of the bank holding company's subsidiary banks were
principally conducted on July 1, 1966, or on the date on which the
company became a bank holding company, whichever is later.
4. Md. Fin. Inst. Code Ann. § 5-1001 et seq. (1986).
5. N.C. Gen. Stat. § 53-209 et seq. (1985).
6. The Baltimore banking market is approximated by the Baltimore
RMA and the remainder of Harford County, Maryland.
667
The financial and managerial resources of Applicant, its subsidiary banks, and CentraBank are considered satisfactory and consistent with approval of this
application. In considering the convenience and needs
of the communities to be served, the Board has taken
into account Applicant's record under the Community
Reinvestment Act (12 U.S.C. § 2901 et seq.,
("CRA")), 7 and comments received from the Maryland Alliance for Responsible Investment ("MARI"),
a coalition of non-profit developers and other community-based organizations representing Baltimore's
low-income and minority neighborhoods. 8 MARI requests that the Board not approve the application until
Applicant provides adequate assurances that it will
meet the convenience and needs of the low- and
moderate-income persons, and minorities, that CentraBank currently serves. MARI also requests that the
Board deny the application because Applicant's lending practices are not consistent with safe and sound
banking practices.
In accordance with the Board's practice and procedure for handling protested applications, 9 the Federal
Reserve Bank of Richmond assisted in arranging several meetings between the parties to clarify the issues
under the CRA and to provide a forum for resolution
of differences. The parties, however, were unable to
come to a resolution of their differences.
In response to MARI's comments, the Board notes
that both Applicant and CentraBank have satisfactory
CRA records. Moreover, Applicant has developed a
comprehensive corporate CRA policy for Maryland in
which Applicant has committed to:
(1) name a Community Affairs Officer for Maryland
who will meet with community organizations, become familiar with available financing programs,
and work with CentraBank's branch manager, officers, and personnel to meet CRA goals;
(2) determine and monitor community needs
through study of selected low- and moderate-income
areas and meetings with community groups;
(3) use its best efforts to inform the community of its
services through marketing and advertising, with
programs specially directed at targeted areas; 10
7. The CRA requires the Board, in its evaluation of a bank holding
company application, to assess the record of an applicant in meeting
the credit needs of the entire community, including low- and moderate-income neighborhoods, consistent with safe and sound operation.
8. Although MARI's protest was not received within the time limits
set forth by the Board, the Board has considered these comments in
reviewing this application.
9. See 12 C.F.R. § 262.25(c).
10. These areas are census tracts within the community served by
CentraBank having a median household income equal to or less than
80% of the median household income of the MSA within which the
census tracts are located.
668
Federal Reserve Bulletin • August 1987
(4) endeavor to use flexibility in applying credit
criteria, consistent with safe and sound banking
practices, and meet with community groups in order
to obtain input from such groups as to flexible
standards as well as to keep such groups informed of
lending criteria;
(5) seek to provide counseling and technical assistance to governmental and private communitybased agencies working within the targeted areas;
(6) develop basic banking services such as a program to cash government checks and a regular
checking account service at reduced maintenance
fees; and
(7) devote special elfort to providing housing, small
business, and economic development loans to targeted areas.
sales of noncredit-related insurance to CentraBank's
customers, and will limit its insurance activities to
those credit-related insurance activities permitted under section 4(c)(8)(A) of the Act. Applicant's remaining insurance activity, the sale to CentraBank and its
affiliates of insurance required for their operation, is a
permissible servicing activity under sections 4(a)(2)(A)
and 4(c)(1)(C) of the Act, and section 225.22(a)(2)(ix)
of the Board's Regulation Y. The Board previously
has determined that the prohibition on insurance activities now contained in section 4(c)(8) of the Act as a
result of the Garn Act has no bearing on the internal
operations of a bank holding company (49 Federal
Register 808 (1984)). Accordingly, the Board concludes that CentraBank's credit-related insurance activities and servicing activities are consistent with the
Act.12
In addition, Applicant has stated it will make a good
faith effort to provide at least $2 million in home
mortgage and home improvement loans as well as $1
million in small business loans in low- and moderateincome areas.
Based on the above and all the facts of record, and
after taking into account Applicant's commitments to
enhance CentraBank's service to meet the convenience and needs of its community, including low- and
moderate-income segments, the Board concludes that
convenience and needs considerations are consistent
with approval of this application.11
CentraBank currently engages, through a wholly
owned subsidiary, in the sale of both credit-related and
noncredit-related insurance to CentraBank's customers and the sale to CentraBank and its affiliates of
insurance required for their operations. The National
Association of Life Underwriters and the National
Association of Professional Insurance Agents submitted comments protesting the application on the
grounds that the activities conducted by CentraBank
are prohibited under the amendments to section 4 of
the Act contained in the 1982 Garn-St Germain Depository Institutions Act ("Garn Act").
In response to the protest, Applicant has committed
that, upon consummation, CentraBank will cease all
CentraBank also currently engages, through a partnership, in real estate investment activities.13 Applicant has committed that, upon consummation, CentraBank will not engage, directly or indirectly, in any real
estate investment activities impermissible under the
Act, except to complete its existing project. Applicant
has committed to complete this project and divest of it
within two years of consummation of the proposal.
Based on the foregoing and other facts of record,
including the commitments made by Applicant, the
Board has determined that the application under section 3 of the Act should be and hereby is approved.
The acquisition of NCNB Bank shall not be consummated before the thirtieth calendar day following the
effective date of this Order, or later than 90 days after
the effective date of this Order, unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of Richmond, pursuant to delegated authority.
By order of the Board of Governors, effective
June 1, 1987.
Voting for this action: Chairman Volcker and Governors
Johnson, Seger, Angell, Heller, and Kelley.
JAMES M C A F E E
[SEAL]
11. MARI also requested that the Board deny this application
because of Applicant's lending practices to third world nations,
especially South Africa. Applicant is in compliance with all federal
laws regarding its lending activities to South Africa. In addition, as
noted above, the Board believes that Applicant's financial condition is
consistent with approval of this application.
MARI has also requested that the Board order a public meeting to
receive public testimony on the issues presented by this application.
Although section 3(b) of the Act does not require a formal hearing in
this instance, the Board may, in any case, order a formal or informal
hearing. In the Board's view, the parties have had ample opportunity
to present their arguments in writing and to respond to one another's
submissions. In light of these facts, the proposals by Applicant to
expand its services, and other facts of record, the Board has determined that a hearing would serve no useful purpose. Accordingly,
MARI's request for a public hearing is hereby denied.
Associate Secretary of the Board
12. The Independent Insurance Agents of America, Inc., the National Association of Casualty and Surety Agents, and the National
Association of Surety Bond Producers submitted comments stating
that, in light of Applicant's commitment to terminate noncreditrelated insurance sales, they did not oppose Applicant's continuation
of credit-related insurance sales permissible under section 4(c)(8)(A)
of the Act and insurance activities required for the operation of
CentraBank and its affiliates.
13. The Maryland Bank Commissioner has questioned the legality
of this investment under state law and has requested the advice of the
Maryland Attorney General on the issue. The Attorney General has
not provided an opinion yet. Applicant has committed to conform its
investment to the terms of the opinion within a reasonable period of
time following receipt of the opinion.
Legal Developments
Orders Issued Under Section 4 of the Bank
Holding Company Act
Citicorp
N e w York, N e w York
Order Approving Purchase of Certain Assets and
Assumption of Certain Liabilities of a Savings and
Loan Association
Citicorp, New York, New York, a bank holding company within the meaning of the Bank Holding Company Act (12 U.S.C. § 1841 et seq.) (the "BHC Act"),
has applied for the Board's approval under section
4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)), for its
subsidiary, Citicorp Savings, a Federal Savings and
Loan Association, Oakland, California ("Citicorp
Savings"), to purchase certain assets and assume
certain liabilities of 50 branch offices of Sears Savings
Bank, Glendale, California ("Sears Savings").
Notice of the application, affording opportunity for
interested persons to submit comments, has been
published (52 Federal Register 12,252 (1987)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 4(c)(8)
of the BHC Act.
Citicorp, with total consolidated assets of $196.1
billion, is the largest banking organization in the
United States. 1 Citicorp controls nine subsidiary
banks and engages in numerous nonbanking activities,
including the operation of savings and loan associations in California, Washington, D.C., Florida, and
Illinois.
Citicorp Savings is a federally chartered, FSLICinsured savings and loan association ("S&L"), which
is the successor to the failed Fidelity Savings & Loan
Association. 2 Citicorp Savings has total assets of $4.9
billion and operates 86 branches in California, primarily in the northern part of the state.
Sears Savings is a California-chartered, FSLICinsured S&L and a wholly owned subsidiary of Sears
Roebuck & Co., Chicago, Illinois. Sears Savings has
91 branches in California, predominantly in the southern part of the state, and $6.6 billion in total assets.
Citicorp Savings proposes to assume approximately
$2 billion of deposits and other liabilities and to
purchase approximately $1.9 billion in tangible assets
of 50 branch offices of Sears Savings.
669
Section 4(c)(8) of the BHC Act (12 U.S.C.
§ 1843(c)(8)) authorizes a bank holding company to
engage in nonbanking activities and acquire shares of a
nonbanking company that engages in activities determined by the Board to be "so closely related to
banking or managing or controlling banks as to be a
proper incident thereto." The Board previously has
determined that the operation of a thrift institution is
closely related to banking.3
With respect to the "proper incident" requirement,
section 4(c)(8) of the BHC Act requires the Board to
consider whether the performance of the activity by an
affiliate of a holding company "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."
In 1977, the Board determined that, as a general
matter, the operation of an S&L was not a proper
incident to banking because the potential adverse
effects of generally allowing affiliations of banks and
S&Ls were then sufficiently strong to outweigh any
public benefits that might result from individual cases.4 In evaluating this application, the Board has
considered whether Citicorp's proposal involves the
acquisition of an existing, healthy S&L, thus requiring
the Board to reconsider its D.H. Baldwin decision that
the acquisition of a healthy thrift is not generally a
proper incident to banking, or whether the proposal
represents merely the permissible acquisition of certain assets and the assumption of certain liabilities of
S&L branches.
Based upon its review of the record, the Board has
concluded that Citicorp's proposal properly may be
viewed as the permissible acquisition of certain assets
and liabilities of S&L branches rather than the acquisition of an S&L. The acquisition here involves less than
one-third of Sears Savings' assets and liabilities, and
Sears Savings will not be eliminated as a competitor in
any relevant market. 5 This proposal also is consistent
3. See, e.g., D.H. Baldwin
Company,
63 FEDERAL RESERVE BULFinancial
Corp.,
6 8 FEDERAL RESERVE
LETIN 2 8 0 ( 1 9 7 7 ) ; Interstate
BULLETIN 316
4. D.H.
(1982).
Baldwin
Company,
6 3 FEDERAL RESERVE BULLETIN 2 8 0
(1977). While the Board has not permitted bank holding companies to
acquire thrift institutions on a general basis, the Board has consistently regarded the BHC Act as authorizing it to permit such an acquisition and has approved several such proposals involving failing thrift
institutions on the basis that any adverse effects would be overcome
by the public benefits of preserving the failing thrift institutions. See,
e.g.,
F.N.B.
Corporation,
71 FEDERAL RESERVE BULLETIN 3 4 0
(1985); The Chase Manhattan
Corporation,
71 FEDERAL RESERVE
BULLETIN 4 6 2
1. Banking data are as of December 31, 1986, unless otherwise
specified.
2. The acquisition of Citicorp Savings was approved by the Board
by Order of September 28, 1982. Citicorp (Fidelity), 68 FEDERAL
RESERVE BULLETIN 6 5 6
(1982).
(1985).
5. These factors distinguish this case from the Board's decision in
Old Stone
Corporation
( C a t a w b a ) , 7 0 FEDERAL RESERVE BULLETIN
593 (1984). In that case, the Board denied a proposal by a bank holding
company to acquire through an existing S&L subsidiary, all of the
assets and liabilities of a healthy S&L.
670
Federal Reserve Bulletin • August 1987
with the branching restrictions in the Board's Order
allowing the initial acquisition of Citicorp Savings,
since the branches to be acquired are all at locations at
which a state or national bank in California may
establish a branch. 6
Citicorp Savings is the 21st largest depository institution among commercial banking organizations and
S&Ls in California, with total deposits of $2.9 billion,
representing less than 1 percent of the total deposits in
commercial banks and thrifts in the state. Upon consummation of the proposal, Citicorp Savings would
become the 15th largest depository institution among
commercial banking organizations and S&Ls in California, and the ninth largest S&L in California, controlling 1.4 percent of the total deposits in commercial
banks and thrifts in the state. Accordingly, the Board
concludes that consummation of this proposal would
not have a significant adverse effect on the concentration of commercial bank and thrift institution resources.
Citicorp Savings and Sears Savings compete for
S&L services in the Los Angeles, San FranciscoOakland-San Jose, and San Diego markets. 7 Upon
consummation of the proposal, Citicorp Savings' market share would be less than 5 percent (based on
deposits in commercial banks and thrifts) in each of
the markets, and the increase in concentration in the
markets would not be substantial. Accordingly, the
Board concludes that consummation of this proposal
will not have a significant adverse effect on existing
competition in any relevant market. The Board also
concludes that the proposal would not have any significant adverse effect on probable future competition.
In evaluating this application, the Board has considered the financial resources of Applicant and the effect
on these resources of the proposed acquisition. The
Board has stated and continues to believe that capital
adequacy is an especially important factor in the
analysis of bank holding company proposals, particularly in transactions where a significant acquisition is
proposed. 8
In this regard, the Board expects that banking
organizations experiencing substantial growth internally and by acquisition, such as Applicant, should
maintain a strong capital position substantially above
the minimum levels specified in the Capital Adequacy
Guidelines without significant reliance on intangibles,
particularly goodwill.9 The Board will carefully analyze the effect of expansion proposals on the preservation or achievement of such capital positions.
The Board has reviewed this case in the light of
Applicant's capital and asset position. In approving
this application, the Board has relied on the assurances of Applicant that it plans to strengthen its capital
base in the near term, and the Board intends to
monitor progress toward this objective. Accordingly,
on the basis of the above considerations, the Board
concludes that financial factors are consistent with
approval of the application. Managerial factors and
convenience and needs also are consistent with approval.
The Board also concludes that consummation of the
proposal will not result in conflicts of interests, unsound banking practices, undue concentration of resources, or other adverse effects.
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) of the BHC Act 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 Board's Regulation Y,
12 C.F.R. § 225.4(d) and 225.23(b)(3). The approval is
also subject to the Board's authority to require modification or termination of the activities of the holding
company or any of its subsidiaries as the Board finds
necessary to assure compliance with the provisions
and purposes of the BHC Act and the Board's regulations and orders issued thereunder, or to prevent
evasion thereof.
This transaction shall not be consummated later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board, or by the Federal Reserve Bank of New
York, pursuant to delegated authority.
By order of the Board of Governors, effective
June 29, 1987.
V o t i n g for this action: C h a i r m a n V o l c k e r and G o v e r n o r s
S e g e r , A n g e l l , and K e l l e y . A b s e n t and not voting: G o v e r n o r s
J o h n s o n and Heller.
6. The proposal also is consistent with the principles underlying the
branching restrictions of the emergency thrift acquisition provisions of
the Garn-St Germain Depository Institutions Act of 1982. (12 U.S.C.
§ 1730a(m)(5)).
7. The Los Angeles market is approximated by the Los Angeles
RMA. The San Francisco-Oakland-San Jose market is approximated
by the San Francisco-Oakland-San Jose RMA. The San Diego market
is approximated by the San Diego RMA. Market data are as of June
30, 1985.
8. See e.g., Chase Manhattan Corporation, 70 FEDERAL RESERVE
BULLETIN
529
BULLETIN 49
(1984);
(1983).
NCNB
Corporation,
69
FEDERAL
RESERVE
JAMES M C A F E E
Associate Secretary of the Board
[SEAL]
9. Capital Adequacy
1 6 , 0 6 6 - 6 7 ( A p r i l 24,
Guidelines,
50 Federal
Register
16,057
1985) (71 FEDERAL RESERVE BULLETIN
(1985)); National City Corporation,
743, 746 (1984).
445
70 FEDERAL RESERVE BULLETIN
Legal Developments
Security Pacific Corporation
Los Angeles, California
Order Approving an Application to provide AssetBased Credit Facilities to Commercial Borrowers
Security Pacific Corporation, Los Angeles, California,
a bank holding company within the meaning of the
Bank Holding Company Act (12 U.S.C. § 1841 et seq.)
(the "Act"), has applied for the Board's approval,
pursuant to section 4(c)(8) of the Act (12 U.S.C.
§ 1843 (c)(8)), to acquire substantially all of the assets
of Wells Fargo Business Credit, Inc., Dallas, Texas
("Company").
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (52 Federal Register 10,632 (1987)). 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 a multibank holding company with six
subsidiary banks in California, Arizona, Washington,
and Oregon, controlling $31 billion in domestic deposits.1 Applicant also engages through subsidiaries in
various nonbanking activities.
Company engages in providing asset-based credit
facilities to commercial borrowers nationwide, including accounts receivable, inventory, capital equipment,
and leveraged buyout/merger financing. This activity
is permissible under Regulation Y (12 C.F.R.
§ 225.25(b)(l)(iv)).
In order to approve this application, the Board must
also find that the performance of the proposed activity
can reasonably be expected to produce benefits to the
public, such as greater convenience, increased competition, or gains in efficiency, that outweigh possible
adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of
interest, or unsound banking practices. Both Applicant and Company engage in commercial finance
nationwide, and therefore, some existing competition
would be eliminated as a result of consummation of the
proposal. The combined market share resulting from
the acquisition, however, would be approximately 3
percent. In addition, given the large number of alternative participants providing similar services, no appreciable amount of potential or probable future competition would be eliminated by the proposal.
Accordingly, the Board does not regard the proposed
acquisition as raising any significant competitive
issues.
Consummation of the proposal will provide public
benefits in the form of increased commercial finance
services to the market currently served by Company.
Company's parent, Wells Fargo & Company, San
Francisco, California, has made a corporate decision
to withdraw from the commercial finance business.
Applicant's acquisition of Company will preserve a
competitor in the market and Applicant will provide
the financial and managerial resources to support the
continued operation of Company.
In evaluating this application, the Board also has
considered the financial resources of Applicant and
the effect on those resources of the proposed acquisition. In this regard, the Board has previously expressed concern that expansionary proposals should
be based on the maintenance of an adequate tangible
primary capital position. In connection with an earlier
acquisition which had the effect of decreasing Applicant's tangible primary capital,2 Applicant expressed
its intention to restore its tangible primary capital ratio
to pre-acquisition levels and to continue to strengthen
its capital position. In this case, the proposal would
involve only a negligible reduction in Applicant's
tangible primary capital ratio, and should not have any
material effect on applicant's ability to meet its stated
capital goals. Based on the above facts, particularly
Applicant's plans to continue to strengthen its primary
capital position, the Board concludes that the financial
and managerial resources of Applicant are consistent
with approval.
There is no evidence in the record to indicate that
consummation of the proposal would lead to any
undue concentration of resources, decreased or unfair
competition, unsound banking practices, or other adverse effects. Based on the foregoing and all the facts
of record, the Board has determined that the balance
of public interest factors it is required to consider
under section 4(c)(8) is favorable. Accordingly, the
application is hereby approved. This determination is
subject to the conditions set forth in sections 225.4(d)
and 225.23(b)(3) of the Board's Regulation Y,
12 C.F.R. §§ 225.4(d) and 225.23(b)(3). The approval
is also subject to the Board's authority to require
modification or termination of the activities of the
holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with the
provisions and purposes of the Act and the Board's
regulations and orders issued thereunder, or to prevent evasion thereof. This transaction shall not be
2. Security
1. Data are as of March 31, 1987.
671
800 (1986).
Pacific
Corporation,
72 FEDERAL RESERVE BULLETIN
672
Federal Reserve Bulletin • August 1987
consummated later than three months after the effective date of this Order, unless such period is extended
for good cause by the Board or by the Federal Reserve
Bank of San Francisco, pursuant to delegated authority.
By order of the Board of Governors, effective
June 29, 1987.
Voting for this action: Chairman Volcker and Governors
Seger, Angell, and Kelley. Absent and not voting: Governors
Johnson and Heller.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
Sovran Financial Corporation
Norfolk, Virginia
Order Approving Retention Shares of an Insurance
Agency
Sovran Financial Corporation, Norfolk, Virginia
("Sovran"), a bank holding company within the meaning of the Bank Holding Company Act (12 U.S.C.
§ 1841 et seq.) (the "BHC Act"), has applied for the
Board's approval under section 4(c)(8)(D) of the BHC
Act and section 225.25(b)(8)(iv) of Regualtion Y
(12 C.F.R. § 225.25(b)(8)(iv)), to retain indirectly all of
the voting shares of Sovran Insurance, Inc., a company that engages in general insurance agency activities,
including the sale of life and property and casualty
insurance to the general public.
Applicant has total consolidated assets of approximately $14.6 billion and controls banks in Maryland,
Virginia and the District of Columbia.1 Applicant also
engages through certain subsidiaries in a variety of
nonbanking activities permissible for bank holding
companies.
On February 27, 1986, the Board approved an
application under the BHC Act by Sovran to acquire
Suburban Bancorp, Bethesda, Maryland, and its subsidiary bank, Suburban Bank. Suburban Bank, since
1964, has controlled, pursuant to Maryland law, Suburban Insurance, Inc. (now renamed Sovran Insurance, Inc.), which engages in general insurance agency
activities. Suburban Bancorp, which became a bank
holding company in 1972 through acquisition of Suburban Bank, has since that time claimed entitlement to
retain indirect ownership and control of the insurance
1. Banking data are as of March 31, 1987.
agency under the BHC Act on the basis of section
225.22(d)(2) of the Board's Regulation Y. That regulation allows a state bank owned by a bank holding
company to acquire and retain all of the voting shares
of company that engages in activities the parent state
bank may conduct directly. 12 C.F.R. § 225.22(d)(2).
Sovran's application to acquire Suburban Bancorp
was protested by various insurance industry trade
groups on the ground that Suburban Insurance's activities are prohibited under Title VI of the Garn-St
Germain Depository Institutions Act of 1982. The
Garn-St Germain Act amended section 4 of the BHC
Act to provide that, with seven specific exceptions,
insurance activities are not closely related to banking
and thus are not generally permissible for bank holding
companies. 2
The Board's February 27, 1986, Order approving
Sovran's acquisition of Suburban Bancorp did not
resolve this issue. In response to the protests, Sovran
committed that if its acquisition of Suburban Bank
were approved, Suburban Insurance would, upon its
acquisition by Sovran, cease writing new policies until
the Board acted to resolve the legal questions raised
by its insurance activities. On the basis of this commitment, the acquisition was consummated on March 31,
1986.3
On November 11, 1986, Sovran filed the present
application claiming entitlement to retain indirect control over Suburban Insurance pursuant to section
4(c)(8)(D) of the BHC Act, the grandfather provision
of the Garn-St Germain Act (hereinafter "exemption D"). This section provides an exception to the
general insurance prohibition of the Garn-St Germain
Act for any insurance agency activity which was
engaged in by a bank holding company or any of its
subsidiaries on May 1, 1982, subject to certain geographic and functional limitations.4
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been published in the Federal Register. (51
Federal Register 42,138 (1986)). The time for filing
2. On October 3, 1986, the Board amended Regulation Y to include
in the list of activities that the Board has found to be closely related to
banking within the meaning of section 4(c)(8) of the Act and thus
permissible for bank holding companies, the insurance agency activities delineated in the seven exemptions to the Garn-St Germain Act.
51 Federal Register 36,201 (1986), to be codified at 12 C.F.R.
§ 225.25(b)(8).
3. 7 2 FEDERAL RESERVE BULLETIN 3 4 7
(1986).
4. Exemption D restricts grandfathered insurance activities to the
state in which the grandfathered bank holding company has its
principal place of business, any state immediately adjacent to that
state, and any state or states in which insurance activities were
conducted by the bank holding company or any of its subsidiaries on
May 1, 1982, or were approved to be conducted by the bank holding
company or any of its subsidiaries on or before May 1, 1982.
12 U.S.C. § 1843(c)(8)(D) and 12 C.F.R. § 225.25(b)(8)(iv).
Legal Developments
comments has expired, and the Board has considered
the application and all comments received in light of
the factors set forth in section 4 of the BHC Act. 5
Protestants assert that the Board should not approve
the application because Suburban Bank is prohibited
by Maryland law from engaging directly in general
insurance agency activities and thus, under section
225.22(d)(2) of the Board's Regulation Y, could not
acquire or retain control of a company engaged in
these activities. On this basis, Protestants claim Suburban Insurance was not lawfully held by Suburban
Bancorp under the BHC Act or Regulation Y on May
1, 1982, the grandfather date under exemption D, and
thus Suburban Insurance does not qualify for grandfather privileges under exemption D. Protestants also
contend that, even if Suburban Insurance qualifies for
grandfather privileges under exemption D, those
grandfather privileges would terminate if it were acquired by another bank holding company, such as
Sovran, which has no grandfather rights under the
BHC Act. 6
Applicant responds that Suburban Bancorp and its
indirect subsidiary, Suburban Insurance, qualify under
exemption D because Suburban Insurance was engaging in the insurance agency activities in question on
May 1, 1982, with the full knowledge and consent of
the Board and the state regulatory authorities, and that
Suburban's grandfather privileges do not terminate
when it is acquired by another bank holding company.
Alternatively, Applicant contends that the Board
should disregard the separate corporate identity of the
insurance agency subsidiary and treat its insurance
activities as being conducted directly by the parent
state bank, and thus, in Applicant's view, outside the
scope of the nonbanking and insurance restrictions in
section 4 of the BHC Act. Finally, Applicant contends
that the nonbanking provisions of section 4 of the BHC
Act do not apply to nonbank subsidiaries of holding
company banks and thus Suburban Insurance may
continue to sell insurance regardless of whether Suburban Insurance's activities comply with the Board's
state bank regulation.
5. The Board received comments from the following associations
opposing approval of the application ("Protestants"): the Independent Insurance Agents of America, the National Association of
Casualty and Surety Agents, the National Association of Surety Bond
Producers, the National Association of Life Underwriters, the National Association of Professional Insurance Agents, the Maryland State
Association of Life Underwriters, the PIA Association of Pennsylvania, Maryland and Delaware, the American Council of Life Insurance,
the American Insurance Association, the National Association of
Independent Insurers, and the Alliance of American Insurers.
6. In addition, Protestants contend that Exemption D only applies
where the activities were conducted pursuant to specific approval
from the Board under section 4(c)(8) of the Act and that in any event
Suburban Bank may not under Maryland law control an affiliate
engaged in general insurance agency activities.
673
After considering the arguments of the Applicant
and Protestants, as well as the views of the Maryland
Bank Commissioner and the Maryland Insurance
Commissioner, the Board has determined that Suburban Bancorp is entitled to retain indirect ownership
and control of Suburban Insurance under exemption D
and section 225.25(b)(8)(iv) of Regulation Y and that
this entitlement does not terminate upon Suburban
Bancorp's acquisition by Sovran. With regard to Applicant's contention regarding the applicability of section 4 of the BHC Act to nonbanking companies
controlled by holding company banks, the Board has
previously determined that under the specific terms of
the BHC Act, the acquisition and retention by holding
company banks of voting shares of nonbanking companies is governed by section 4 of the BHC Act. 7 As
this case reflects, the Board has had in place since
1971 a regulation promulgated under the BHC Act that
governs the type of nonbanking activities in which
nonbank companies controlled by holding company
banks may engage. In light of the Board's determination regarding Sovran's application for grandfather
rights under exemption D, however, the Board finds it
unnecessary to address Applicant's alternative contentions, including its views on the scope of coverage
of section 4 of the Act.
A. Suburban Insurance Qualifies For
Grandfather Privileges Under Exemption
the Garn-St Germain Act
D of
As indicated, exemption D by its terms provides an
exception to the general prohibition on the conduct by
bank holding companies of insurance activities for
those insurance agency activities engaged in by a bank
holding company or any of its subsidiaries on May 1,
1982, subject to certain geographic and functional
limitations.8
The record is clear that on the relevant date, May 1,
1982, Suburban Insurance was engaged in insurance
agency activities and therefore meets the literal qualifications for grandfather rights under the exemption.
7 . See
e.g.
Security
Pacific
Corporation,
7 2 FEDERAL
RESERVE
BULLETIN 800 (1986), and the authorities referenced therein.
8. 12 U.S.C. § 1843(c)(8)(D). Specifically, paragraph (8) of section
4(c) of the BHC Act provides an exception to the nonbanking
prohibitions of section 4(a) of the Act for shares of companies engaged
in activities that the Board has determined to be so closely related to
banking as to be a proper incident thereto. The Garn-St Germain Act
amended this paragraph to provide that:
for p u r p o s e s of this s u b s e c t i o n , it is not closely related to banking or
managing a controlling b a n k s f o r a b a n k holding c o m p a n y t o p r o v i d e
insurance as principal, agent, or b r o k e r e x c e p t . . . (D) any insurance activity
which w a s engaged in by the bank holding c o m p a n y or any of its subsidiaries
on M a y 1, 1982, or which the B o a r d a p p r o v e d for such c o m p a n y or any of its
subsidiaries on or b e f o r e May 1, 1982 . . . . 12 U . S . C . § 1843(c)(8).
674
Federal Reserve Bulletin • August 1987
The Board notes that the Senate Banking Committee
report associated with exemption D explains that the
activities grandfathered under this provision must
have been engaged in pursuant to and in accordance
with the applicable statutory and regulatory standards
in effect on May 1, 1982.9 Thus, the question raised by
this application is whether Suburban Insurance's activities on that date were being conducted in conformance with applicable statutory and regulatory requirements for purposes of exemption D.
Suburban Bancorp never applied under section
4(c)(8) of the BHC Act to acquire or retain indirect
ownership or control of Suburban Insurance. Rather,
when it applied to become a bank holding company in
1972, Suburban Bancorp relied upon section 225.22(d)
of the Board's Regulation Y as authority to acquire
and retain indirect control of Suburban Insurance. As
noted, this regulatory provision provides an exception
to the general nonbanking prohibitions of the BHC Act
by permitting a state bank, without the Board's prior
approval, "to acquire or retain all. . . of the securities
of a company that engages solely in activities in which
the parent bank may engage, at locations which the
bank may engage in the activity, and subject to the
same limitations as if the bank were engaging in the
activity directly." 12 C.F.R. § 225.22(d)(2).
In order to qualify under this regulation, the company in question must be engaged in activities that the
bank could conduct directly. 10 Protestants argue that
Suburban Insurance is not now, and was not on May 1,
1982, operating in accordance with this requirement of
the Board's regulation because Maryland banking and
insurance law prohibit a Maryland bank from engaging
directly in insurance agency activities.11
The insurance activities of Suburban Bank may be
traced back to 1922, when Prince George's Bank, a
predecessor of Suburban Bank, sold insurance
through licensed agents. Insurance sales by employees
of the bank or predecessor institutions continued, and
in 1955 a formal insurance department was organized
within the bank. In 1964, Suburban Bank consolidated
9. S. Rep. No. 536, 97th Cong., 2d Sess. 39 (1982).
10. See e.g., Piedmont Carolina Financial Services, 59 FEDERAL
RESERVE BULLETIN 766 (1973), where the Board stated that this
regulatory provision would permit a holding company to acquire a
company engaged in insurance activities that the bank could conduct
directly. The Board specifically noted, however, that this company
could not be acquired under this provision, if state law permitted the
bank to invest in shares of a company engaging in this activity, but did
not permit the bank to engage in the activity directly.
11. Protestants also assert that this provision of Regulation Y is
invalid. However, since this regulation was in effect on May 1, 1982,
compliance with it would satisfy the requirements of exemption D,
regardless of later challenges to its validity.
the insurance department with an incorporated affiliate
of the bank that was engaged in holding bank premises, Citizens Building, Inc. In 1984, the subsidiary's
name was changed to Suburban Insurance, Inc.
In connection with its application to become a bank
holding company in 1972, Suburban Bancorp advised
the Board that Suburban Bank controlled a general
insurance agency, and Suburban has subsequently
kept the Board apprised of the affiliate's insurance
activities. On September 12, 1972, the Federal Reserve Bank of Richmond, in order to respond to an
inquiry from a law firm representing certain insurance
interests, inquired of the Maryland Bank Commissioner whether such insurance activities were permitted
for state banks in Maryland. On September 14, 1972,
the Maryland Deputy Bank Commissioner responded
by advising that the Department was aware of the
insurance activities of Suburban and "took no exception." In 1986, in connection with the processing of
Sovran's application to acquire Suburban Bancorp,
the Maryland Bank Commissioner advised the Board
that that office had been aware of the insurance agency
activities conducted by Suburban Bank directly and
through Suburban Insurance and that "Suburban's
insurance activities are and have been lawful activities
for a state-chartered bank in Maryland."
However, in 1987 the Maryland Insurance Commissioner informed the Board that Suburban Bank could
not engage directly in insurance agency activities
under the State Insurance Code as it now stands and as
it stood in 1982.12 Under Maryland law, only a corporation engaged primarily in the insurance business may
obtain an insurance license.13 The Commissioner advised that because Suburban Bank is primarily engaged in the banking business, it could not be issued a
license to sell insurance and could not receive commissions for procuring or influencing the procurement of
insurance sales.14 The Insurance Commissioner confirmed that Suburban Bank could control a company
that holds a license to sell insurance and that Suburban
Insurance's current activities were fully consistent
with Maryland insurance laws.
While it now appears in retrospect that Suburban
Insurance's activities did not qualify for the exemption
under the section 225.22(d)(2) of Regulation Y on May
1, 1982, the overriding factor in this case is that the
activities were being conducted on that date and for
12. See letter of Mr. Edward J. Mulh, State Insurance Commissioner, dated May 18, 1987. See also, Goodman v. Perpetual
Building
Ass'n., 320 F. Supp. 20, 36 (D.D.C. 1970).
13. Md. Ann. Code, art. 48A, § 168(d) (1979), now codified at Md.
Ann. Code. art. 48A, § 168(e) (1986).
14. See Md. Ann. Code, art. 48A, §§ 167(a) and (c) and 168(d)
(1979); Md. Ann. Code, art. 48A, §§ 167 and 168(e)(2) (1986).
Legal Developments
many years prior thereto with the knowledge of the
Board and state regulatory agencies and without a
determination by these agencies that the activities
were not in accordance with applicable statutes and
regulations. On this basis, the Board finds that Suburban Insurance qualifies for grandfather privileges under exemption D.15
The purpose of a grandfather provision is to avoid
the disruption of settled and established relationships
and to maintain the status quo. The legislative history
of exemption D specifically states that it is intended to
permit the "continuation of previously authorized
insurance activities." 16 The insurance activities of
Suburban Insurance were authorized to the extent that
these activities were conducted with the full knowledge of and without objection from the Board on May
1, 1982, and are thus within the type of insurance
activity Congress sought to protect in exemption D.
While it appears that, based on information brought to
the Board's attention in 1987—16 years after Suburban
became a bank holding company and informed the
Board of its interest in Suburban Insurance—Suburban Insurance may not have technically qualified
under the Board's regulation, that determination
should not be applied retroactively to deprive the
company of a benefit which under the terms of the
statute are made available to any company engaged in
the activity on May 1, 1982. Further, given the intent
of the grandfather provision, it would not appear
appropriate to upset settled and long-standing relationships which existed on the grandfather date with the
knowledge of and without objection from appropriate
regulatory authorities.
In this regard, the Board has considered the legislative history of exemption D which, as noted, indicates
that grandfather privileges were not intended for companies that were operating in violation of applicable
statutes and regulations. This legislative history does
not, however, in the Board's view, indicate a Congressional intent to foreclose grandfather rights to holding
company subsidiaries that had been selling insurance
15. Protestants further contend that a Maryland bank is not authorized under Maryland banking law to sell insurance. As noted, the
Maryland Bank Commissioner has advised the Board in writing on
two occasions (in 1972 and in 1986) that Suburban Bank's insurance
activities are authorized under Maryland banking law. The Commissioner has referred to a provision of the Maryland Code that permits a
state bank to exercise all of the powers usual in carrying on a banking
business. (Md. Financial Institutions Code § 3-206(b)(12)).
The present application does not require the Board to resolve this
dispute over permissible banking powers under Maryland law. Even if
the Maryland Bank Commissioner's conclusion is erroneous, the
Board nevertheless believes that Suburban Insurance qualifies for the
grandfather privileges under exemption D in light of the facts and
circumstances relating to its conduct of insurance activities on May 1,
1982, as discussed in detail in this Order.
16. S. Rep. No. 536, 97th Cong. 2d Sess. 71 (1982).
675
on the grandfather date with the approval of state
banking and insurance regulatory authorities and with
no determination by the Board that the activities of the
subsidiary were not in compliance with the BHC Act
or Board's regulations under the Act. In such circumstances, showing that the bank holding company was
not operating in disregard of applicable statutes or
regulations on the grandfather date, the holding company would, in the Board's view, qualify for grandfather rights under the terms and Congressional intent of
exemption D.
Finally, the Board believes that equitable considerations would also indicate that since the insurance
activities of Suburban Insurance were known to the
public since 1972, and were being conducted with the
knowledge of the Board since that date, it would be
unfair to now penalize Suburban Insurance for any
incorrect assumptions regarding state law. For example, in Independent Bankers Association of America v.
Heimann,17 the court held that an industry trade group
could not challenge an interpretive ruling of the Comptroller of the Currency which had been issued 12 years
earlier and of which the trade group had knowledge.
The court stated: "Equity will not protect a party that
through years of silence has created an impression of
acquiescence that has led others to make substantial
financial commitments." Id. at 488.
Protestants also argue that in order to qualify for
grandfather privileges under exemption D, the bank
holding company must have obtained specific approval from the Board under section 4(c)(8) of the BHC Act
to conduct the particular activity and that the insurance activity must be directly related to an extension
of credit by an affiliate as opposed to the type of
general insurance activity conducted by Suburban
Insurance. Because Suburban Insurance's activities
were not specifically approved by Board order under
section 4(c)(8) of the Act and are not confined to the
sale of credit-related insurance, Protestants claim Suburban Insurance does not qualify under exemption D.
Neither the language of exemption D nor its legislative
history supports this position.
The language of the statute states clearly and unambiguously that it applies to any insurance activity that
was engaged in on May 1, 1982, or which was approved by the Board on or before that date. Thus, the
language itself does not limit grandfather rights to the
sale of credit-related insurance or to insurance activities that were specifically approved by the Board by
order under section 4(c)(8).
The legislative history of this section confirms this
interpretation. A prior version of the statute (H.R.
17. 627 F.2d 486 (D.C. Cir. 1980).
676
Federal Reserve Bulletin • August 1987
2255, 96th Cong. 1st. Sess. (1979)) grandfathered insurance activities which were engaged in on or before
a grandfather date, but only if such activities were
specifically approved by the Board. During hearings
on this bill held by the House Banking Committee, the
Association of Bank Holding Companies protested
that this grandfather provision "fails to take into
consideration insurance activities which were "grandfathered" in 1956, 1966 and 1970, and for which there
was never an occasion to have an application approved by the Board." 18 Following these hearings, the
House Banking Committee reported out a version of
H.R. 2255 that deleted the requirement for Board
approval, and instead grandfathered any insurance
activity lawfully engaged in on the specified grandfather date. (H.R. Rep. No. 845, 96th Cong. 2d Sess.
(1980)). This grandfather language was adopted, with
modifications, by the Senate (See, S. Rep. No. 923,
96th Cong. 2d Sess (1980)).
In the Board's view, this legislative history makes it
clear that the grandfather provision in exemption D
was not intended to be limited to the credit-related
property and casualty insurance activities approved by
the Board under section 4(c)(8) of the Act prior to
enactment of the Garn-St Germain Act.
B. Suburban Insurance's
Grandfather
Privileges do not Terminate Upon its
Acquisition by a Non-Grandfathered
Bank
Holding
Company
Under section 4 of the BHC Act, Sovran may not
directly or indirectly acquire control of a nonbank
company, unless the acquisition qualifies under one of
the exceptions found in the Act. 12 U.S.C. § 1843(a).
In this case, Sovran is claiming the exception in
section 4(c)(8)(D), which as noted grandfathers insurance activities conducted by a bank holding company
or any of its subsidiaries on May 1, 1982. However, on
this date, Suburban Insurance was a subsidiary of
Suburban Bancorp, thus raising the issue whether
Suburban Insurance loses its grandfather rights under
exemption D when its parent holding company is
acquired by another bank holding company.
Section 4(c)(8)(D) of the BHC Act does not specifically deal with this question. The Senate Committee
report associated with this legislation, however, explains that:
18. Hearings on H.R. 2255 before the Subcomm. on Financial
Institutions Supervision, Regulation and Insurance of the House
Comm. on Banking, Finance and Urban Affairs, 96th Cong. 1st Sess.
285 (1979).
The authority to engage in activities under the grandfather amendment only extends to the entity, be that the
holding company itself or a subsidiary or subsidiaries
thereof, which qualifies for the grandfathered activities
status. 19
This legislative history as well as the terms of the
statute indicate a Congressional intent that the grandfather privilege be limited to the entity which qualifies
for the grandfather privilege under exemption D, in
this case Suburban Insurance. In other words, exemption D rights attach to the entity actually conducting
the activity on the grandfather date. As long as it is
only that grandfathered subsidiary that conducts the
activity and not some other affiliate, the requirements
of exemption D are satisfied. Thus, in the Board's
view, the intent of the statute is that the grandfathered
subsidiary continues to be able to engage in the
activity, even if acquired by another bank holding
company so long as the subsidiary complies with the
geographic and functional limitations proscribed in
exemption D.
The Board believes this conclusion is consistent
with the overall intent of the grandfather provision to
permit the continuation of established relationships.
There is nothing in the legislative history that suggests
that a company that was engaged in an insurance
activity under the BHC Act for many years should
cease the activity because it is acquired by another
bank holding company, when the acquisition would
not add an additional insurance competitor or permit
the grandfathered subsidiary to expand its activities.
As noted, Suburban Insurance could not expand its
insurance activities to any location or in any manner
other than as permitted under exemption D before
Suburban's acquisition by Sovran. In other words, the
acquisition does not disturb the status quo insofar as
the insurance activities of Suburban Insurance are
concerned.
On two prior occasions, the Board has determined
that grandfather privileges under exemption D do not
terminate when the grandfathered entity is acquired by
another bank holding company, provided the insurance activities continue to be conducted by the subsidiary that actually conducted the activity on the grandfather date and would not be expanded to other
affiliates of the bank holding company.
In 1983, the Board allowed Seafirst Corporation to
continue to sell credit-related property and casualty
insurance after its acquisition by BankAmerica. 20 The
19. S. Rep. No. 536, 97th Cong., 2d Sess. 40 (1982).
2 0 . BankAmerica
568
(1983).
Corporation,
6 9 FEDERAL RESERVE BULLETIN
Legal Developments
Board noted that Seafirst was entitled under the terms
of exemption D to continue to sell the insurance
because it was lawfully engaged in the activity on May
1, 1982, pursuant to a prior Board approval. The Board
concluded that Seafirst could continue to engage in
that particular activity after its acquisition by BankAmerica because Seafirst would remain an independent and separate subsidiary of BankAmerica and the
activity would not be conducted by any other subsidiary of BankAmerica or through any of its other
offices. The Board concluded that under the circumstances presented there, the grandfathered insurance
activity would not be transferred to any other entity or
conducted beyond the scope Congress intended in
exemption D.
Similarly, in late 1983, the Board permitted the Fuji
Bank, Ltd. to acquire Walter Heller Inc.'s commercial
finance subsidiary, including a subsidiary that sold
property and casualty insurance in connection with
loans by the finance company. 21 The Board noted that
the Heller subsidiary was entitled to grandfather rights
under exemption D because it received Board approval to engage in the activity before May 1, 1982. As in
the BankAmerica case, the Board allowed the subsidiary, after its acquisition by Fuji, to continue to
conduct the grandfathered activity, noting that the
insurance agency would remain an independent and
separate subsidiary of Fuji, would conduct activities
only from its office in Chicago and only in connection
with loans by the finance company. 22
The Board notes that it has in the past required the
termination of grandfather privileges under section
4(a) of the BHC Act when the company entitled to
those rights was acquired by another company. 23
However, unlike the situation under exemption D, the
terms and legislative history of the grandfather provision of section 4(a) indicate that grandfather rights
were limited only to those companies that were initially brought under the terms of the Bank Holding
Company Act by the 1970 amendments to that Act. As
discussed above, the terms of exemption D and its
legislative history indicate that a grandfathered bank
holding company would be permitted to continue to
conduct insurance activities so long as the grandfath-
21. Fuji Bank,
Limited,
6 9 FEDERAL RESERVE BULLETIN 5 0 ( 1 9 8 3 ) .
22. The Board relied upon the above legislative history which
indicates that grandfather rights under exemption D accrue to the
entity actually conducting the relevant insurance agency activity, in
that case the nonbank subsidiary of Heller.
23. See Maryland National!American
Security Corporation,
73
FEDERAL RESERVE BULLETIN 3 1 0 ( 1 9 8 7 ) , w h e r e t h e B o a r d a p p r o v e d
the acquisition upon the condition that the applicant divest grandfathered nonbanking activities conducted by the acquired bank holding
company.
677
ered activities are conducted by the subsidiary that
was conducting the activity on May 1, 1982.
Based on these factors, the Board concludes that
Sovran may retain indirect ownership and control of
Suburban Insurance, pursuant to section 4(c)(8)(D),
provided that Suburban's general insurance agency
activities are limited to those conducted on the grandfather date and that these activities are conducted only
by Suburban Insurance, which must remain an independent and separate subsidiary of Sovran. Consistent
with the provisions of exemption D, Suburban Insurance must limit its general insurance agency activities
to the state in which its parent holding company,
Suburban Bancorp, maintained its principal place of
business on May 1, 1982 (/. e. Maryland), states
adjacent to Maryland including the District of Columbia, and any additional states in which Suburban
Insurance conducted insurance agency activities on
May 1, 1982. See 12 U.S.C. § 1843(c)(8)(D) and
12 C.F.R. § 225.25(b)(8)(iv).
C. Other
Issues
Protestants question whether Suburban Bank may be
lawfully affiliated with an insurance agency under
Maryland banking law, even if the exemption D provision applies. The Protestants note that the Maryland
Banking Code provides that, except with the prior
approval of the State Bank Commissioner, no banking
institution may have an affiliate. (Md. Financial Institutions Code § 5-403 (1986)). The Bank Commissioner
may approve an affiliation with a company providing
insurance services, but only if the approval imposes
the same conditions that federal law requires or permits for a national bank. (Id.) Since national banks are
not currently authorized to conduct the types of general insurance agency activities at issue here (except in
towns with populations of 5,000 or less), Protestants
conclude that Suburban Bank cannot be lawfully affiliated with a company engaging in such insurance
agency activities.
On March 12, 1987, the Maryland Bank Commissioner advised the Board that Suburban Bank's control of the insurance affiliate was permissible under the
Maryland Banking Code. Under the Maryland Banking Code, restrictions on bank affiliations do not affect
any affiliate, if the affiliation existed on June 1, 1935.
(Md. Financial Institutions Code § 5-402 (1986)). In
this instance, since the affiliation in question can be
traced back to 1932, it would appear to be exempt from
the provisions in the Maryland Code limiting affiliations of Maryland banks. Based on this analysis of
Maryland law, the Board has determined to accept the
Maryland Bank Commissioner's conclusion with respect to the consistency of this particular affiliation
678
Federal Reserve Bulletin • August 1987
under Maryland law insofar as it applies to the conduct
of insurance agency activities that the affiliate has
conducted since 1964.
D. Public
Benefits
While the Board has determined that Suburban Insurance's general insurance activities are permissible
under section 4(c)(8)(D) of the BHC Act and section
225.25(b)(8)(iv) of Regulation Y, the Board must also
determine that these activities are a proper incident to
banking under section 4(c)(8) of the Act. In making
this determination, the Board must consider whether
the performance of the activity can reasonably be
expected to produce benefits to the public that outweigh possible adverse elfects.
The Board believes that approval of this application
will maintain competition in the provision of insurance
agency services in the area served by Suburban Insurance and will avoid disrupting established relationships between Suburban Insurance and its customers.
The Board finds that there is no evidence in the record
to indicate that approval of this proposal would result
in undue concentration of resources, unfair or decreased competition, conflicts of interest, unsound
banking practices, or other adverse elfects. 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 application.
E. Request for
Hearing
Protestants have requested that the Board conduct a
hearing on the application in order to determine the
historical facts that underlie Suburban's entry into the
insurance field, the status of Maryland law, and Sovran's plans to expand its insurance operations in the
future. Under section 4 of the Bank Holding Company
Act, a protestant is not entitled to a hearing on every
application. A hearing is only required when there are
material issues of fact in dispute. 24
24. Connecticut Bankers Assn. v. Board of Governors, 627 F.2d 245
(D.C. Cir. 1980).
In this case, there are no material issues of fact in
dispute. The historical facts relating to Suburban's
entry into the insurance field have been established,
and no specific allegation has been made that these
facts are in error. The issues relating to Maryland law
and its interplay with the Bank Holding Company Act
are legal issues, not factual, and therefore a hearing is
not required to resolve this matter. With respect to the
future activities of Suburban Insurance, exemption D
specifically limits the geographic and functional scope
of the grandfathered insurance activities, and thus
Sovran's future plans with respect to these activities
are circumscribed by the statute. Accordingly, the
Board has determined that a hearing is not required in
this case and hereby denies protestants' request for a
hearing.25
Based on the foregoing, the Board has determined
that the application under section 4 should be, and
hereby is, approved. This determination is subject to
all of the conditions set forth in Regulation Y, and the
requirement that the insurance activities are conducted solely by Sovran Insurance, which must remain an
independent subsidiary of Suburban Bancorp. It is
also subject to the Board's authority to require such
modification or termination of activities of the 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 BHC Act and the Board's regulations and orders
issued thereunder.
By order of the Board of Governors, effective
June 29, 1987.
V o t i n g for this action: C h a i r m a n V o l c k e r and G o v e r n o r s
S e g e r , A n g e l l , and K e l l e y . A b s e n t and not voting: G o v e r n o r s
J o h n s o n and Heller.
WILLIAM W .
[SEAL]
WILES
Secretary of the Board
25. One protestant makes the claim that a public hearing is required
under the net public benefits standard in the Act because of issues
relating to the nature and extent of Suburban Insurance's proposed
activities. However, as noted Suburban Insurance's activities will be
limited by statute to those in which it was engaged on May 1, 1982,
subject to the functional and geographic restrictions in section
4(c)(8)(D) and the Board's Regulation Y. Accordingly, the Board does
not believe a hearing is appropriate or necessary with regard to this
claim.
Legal Developments
ORDERS APPROVED
By Federal Reserve
UNDER BANK HOLDING
COMPANY
679
ACT
Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon
request to the Reserve Banks.
Section 3
Applicant
Americorp,
Ventura, California
Arkansas Union Bankshares,
Inc.,
Benton, Arkansas
BancAlabama, Inc.,
Huntsville, Alabama
Branch Corporation,
Wilson, North Carolina
Buffalo Bancshares, Inc.,
Kansas City, Missouri
Butler Point, Inc.,
Catlin, Illinois
Cando Holding Company, Inc.,
Cando, North Dakota
CB Bancshares, Inc.,
Fort Valley, Georgia
CBE, Inc.,
Elkhorn, Wisconsin
CCB Financial Corporation,
Sandy, Oregon
Central Bancshares of the
South, Inc.,
Birmingham, Alabama
Central Bank Corporation,
Sault Ste. Marie, Michigan
Chemical Financial Corporation,
Midland, Michigan
Citizens' Capital Corporation,
Robertsdale, Alabama
Citizens Corporation,
Columbia, Mississippi
CNB Bancshares, Inc.,
Evansville, Indiana
Commonwealth Bancshares
Corporation,
Williamsport, Pennsylvania
Cosmopolitan Financial
Services, Inc.,
Countryside, Illinois
Coteau Hills Company,
Gackle, North Dakota
Bank(s)
American Commercial Bank,
Ventura, California
Union Bancshares of Benton,
Inc.,
Benton, Arkansas
BankAlabama—Huntsville,
Huntsville, Alabama
Community Bancorporation, Inc.,
Greenville, South Carolina
O'Bannon Banking Co.,
Buffalo, Missouri
The First National Bank of
Catlin,
Catlin, Illinois
The First Bank Cando, N.A.,
Cando, North Dakota
Cook Banking Company,
Cochran, Georgia
Community Bank of Elkhorn,
Elkhorn, Wisconsin
Clackamas County Bank,
Sandy, Oregon
Central Bank of Shelby County,
Shelby County, Alabama
Central Savings Bank,
Sault Ste. Marie, Michigan
Manufacturers Bank of Bay City,
Bay City, Michigan
Citizens' Bank, Inc.,
Robertsdale, Alabama
Citizens Bank,
Columbia, Mississippi
Wabash Valley Bank of
Vincennes,
Vincennes, Indiana
County Bancorp, Inc.,
Montrose, Pennsylvania
OLD CANAL BANKSHARES
II, INC.,
Lockport, Illinois
First State Bank of Gackle,
Gackle, North Dakota
Reserve
Bank
Effective
date
San Francisco
June 2, 1987
St. Louis
June 15, 1987
Atlanta
June 15, 1987
Richmond
June 12, 1987
St. Louis
June 24, 1987
Chicago
June 2, 1987
Minneapolis
May 26, 1987
Atlanta
June 1, 1987
Chicago
June 5, 1987
San Francisco
May 21, 1987
Atlanta
May 29, 1987
Minneapolis
June 4, 1987
Chicago
May 27, 1987
Atlanta
June 11, 1987
Atlanta
June 12, 1987
St. Louis
May 29, 1987
Philadelphia
May 22, 1987
Chicago
June 25, 1987
Minneapolis
May 20, 1987
680
Federal Reserve Bulletin • August 1987
Section 3—Continued
Applicant
DS Bancor, Inc.,
Derby, Connecticut
D.S.B. Bankshares, Inc.,
Randolph, Wisconsin
Eagle Fidelity, Inc.,
Williamstown, Kentucky
E.C.S.B. Holding Company,
Inc.,
Mary Esther, Florida
Escrow Corporation of
America, Inc.,
Pennock, Minnesota
F & M Bancorporation, Inc.,
Kaukauna, Wisconsin
Farmers Enterprises, Inc.,
Albert, Kansas
FIN, Inc.,
Mesa, Arizona
First Albany Bancshares, Inc.,
Albany, Texas
First Bancorp of Louisiana,
Inc.,
West Monroe, Louisiana
First Coleman Bancshares, Inc.
Coleman, Texas
First Dodge City Bancshares,
Inc.,
Dodge City, Kansas
First National Bancorp,
Gainesville, Georgia
The First National Bankshares,
Inc.,
Tucumcari, New Mexico
First National Corporation,
Grand Forks, North Dakota
First Peterborough Bank Corp.,
Peterborough,
New Hampshire
First State Bancorporation,
Inc.,
Elkins, West Virginia
First Wisconsin Corporation,
Milwaukee, Wisconsin
. , ,
Bank(s)
Reserve
Bank
Effective
^
The Derby Savings Bank,
Derby, Connecticut
Dairyman's State Bank,
Randolph, Wisconsin
The Bank of Williamstown,
Williamstown, Kentucky
Emerald Coast State Bank,
Mary Esther, Florida
Boston
June 10, 1987
Chicago
June 16, 1987
Cleveland
May 29, 1987
Atlanta
June 17, 1987
Madelia Holding Corp.,
Madelia, Minnesota
Minneapolis
June 5, 1987
New London National Bank,
New London, Wisconsin
Charter West Bank, N.A.,
Great Bend, Kansas
American National Bank of
Afton,
Afton, Wyoming
The First National Bank of
Albany,
Albany, Texas
First National Bank of West
Monroe,
West Monroe, Louisiana
First Coleman National Bank of
Coleman,
Coleman, Texas
Metro Bancshares, Inc.,
Broken Arrow, Oklahoma
Chicago
June 15, 1987
Kansas City
June 2, 1987
Kansas City
May 28, 1987
Dallas
June 22, 1987
Dallas
June 10, 1987
Dallas
June 17, 1987
Kansas City
May 29, 1987
Banks County Financial
Corporation,
Homer, Georgia
The First National Bank of Santa
Rosa,
Santa Rosa, New Mexico
The First National Bank in
Tucumcari,
Tucumcari, New Mexico
West Fargo State Bank,
West Fargo, North Dakota
The First National Bank of
Peterborough,
Peterborough, New Hampshire
First State Bank Elkins, Inc.,
Elkins, West Virginia
Atlanta
May 18, 1987
Dallas
May 26, 1987
Minneapolis
June 9, 1987
Boston
May 18, 1987
Richmond
May 29, 1987
North Shore Bancorp, Inc.,
Northbrook, Illinois
Chicago
May 29, 1987
Legal Developments
681
Section 3—Continued
. ..
Applicant
FNB Bancshares, Inc.,
Blue Earth, Minnesota
Granite State Bankshares, Inc.,
Keene, New Hampshire
GreatBanc, Inc.,
Aurora, Illinois
Greater Chicago Financial
Corp.,
Chicago, Illinois
Hometown Bancorporation,
Inc.,
Darien, Connecticut
Honat Bancorp, Inc.,
Honesdale, Pennsylvania
Illinois Regional Bancorp, Inc.,
Elmhurst, Illinois
Independent American Financial
Corporation,
Harrisburg, Pennsylvania
Independent Banks of Virginia,
Inc.,
Norfolk, Virginia
Iron and Glass Bancorp, Inc.,
Pittsburgh, Pennsylvania
Kilgore Bancshares, Inc.,
Troup, Texas
Landmark Bancshares
Corporation,
Clayton, Missouri
Lemont Bancorp, Inc.,
Chicago, Illinois
Lewisburg Bancshares
Corporation,
Lewisburg, Kentucky
Liberty Bancshares Inc.,
Montgomery, West Virginia
Magnolia State Capital
Corporation,
Magee, Mississippi
The Marine Corporation,
Milwaukee, Wisconsin
Mark Twain Bancshares, Inc.,
St. Louis, Missouri
Marrowbone Bancorp, Inc.,
Marrowbone, Kentucky
National Security Bank Holding
Company,
Newport, Oregon
n w x
Bank(s)
The First National Bank of Blue
Earth,
Blue Earth, Minnesota
Granite Bank,
Amherst, New Hampshire
Evco, Inc.,
Chicago, Illinois
Austin Bank of Chicago,
Chicago, Illinois
Reserve
B&nk
Effective
^
Minneapolis
May 15, 1987
Boston
June 1, 1987
Chicago
May 21, 1987
Chicago
May 19, 1987
The Bank of Darien,
Darien, Connecticut
New York
June 19, 1987
The Honesdale National Bank,
Honesdale, Pennsylvania
PLUM GROVE
BANCORPORATION, INC.,
Rolling Meadows, Illinois
The Dauphin National Bank,
Dauphin, Pennsylvania
Philadelphia
June 9, 1987
Chicago
June 5, 1987
Philadelphia
May 22, 1987
Richmond
June 12, 1987
Cleveland
June 8, 1987
Dallas
June 19, 1987
St. Louis
June 11, 1987
Chicago
June 19, 1987
St. Louis
June 19, 1987
Richmond
May 29, 1987
Atlanta
June 15, 1987
Chicago
May 19, 1987
St. Louis
June 12, 1987
St. Louis
June 8, 1987
San Francisco
June 1, 1987
Heritage Bank of Northern
Virginia,
McLean, Virginia
Iron and Glass Bank,
Pittsburgh, Pennsylvania
City National Bank of Kilgore,
Kilgore, Texas
Christian County National Bank,
Ozark, Missouri
The Lemont National Bank,
Lemont, Illinois
Lewisburg Banking Company,
Lewisburg, Kentucky
The National Bank of Ansted,
Ansted, West Virginia
State Bank and Trust Company,
Collins, Mississippi
Banco di Roma,
Chicago, Illinois
Edwardsville National Bank and
Trust Company,
Edwardsville, Illinois
Bank of Marrowbone,
Marrowbone, Kentucky
National Security Bank,
Newport, Oregon
682
Federal Reserve Bulletin • August 1987
Section 3—Continued
..
A
Applicant
Nebraska Capital Corporation,
Lincoln, Nebraska
Northern Bancorp, Inc.,
Woburn, Massachusetts
Northwest Georgia Financial
Corporation,
Dallas, Georgia
Norwood Associates II,
Hackensack, New Jersey
Pearl City Bancorp,
Pearl City, Illinois
Peoples Bancorp Inc.,
Marietta, Ohio
Peoples Bancshares, Inc.,
Clanton, Alabama
Peoples Ltd.,
Wyalusing, Pennsylvania
P.T.C. Bancorp,
Brookville, Indiana
Regional Bancorp, Inc.,
Medford, Massachusetts
Rolla Holding Company, Inc.,
Rolla, North Dakota
Security National Bancshares of
Sapulpa, Inc.,
Sapulpa, Oklahoma
Sharon Bancshares, Inc.,
Sharon, Tennessee
Southeast Banking Corporation,
Miami, Florida
Southern National Corporation,
Lumberton, North Carolina
SouthTrust Corporation,
Birmingham, Alabama
SouthTrust Corporation,
Birmingham, Alabama
The Tampa Banking Company,
Tampa, Florida
Three Rivers Bancshares, Inc.,
Milan, Georgia
Union Planters Corporation,
Memphis, Tennessee
Western Security Bancorp,
Burbank, California
r> w s
Bank(s)
Reserve
^
Effective
^
Havelock Bank,
Lincoln, Nebraska
Woburn Bank and Trust
Company,
Woburn, Massachusetts
Alcovy Banking Company,
Mansfield, Georgia
Kansas City
May 22, 1987
Boston
June 25, 1987
Atlanta
June 5, 1987
Midland Bancorporation,
Paramus, New Jersey
The State Bank of Pearl City,
Pearl City, Illinois
The First National Bank of
Chesterhill,
Chesterhill, Ohio
The Peoples Savings Bank,
Clanton, Alabama
Peoples State Bank of Wyalusing,
Wyalusing, Pennsylvania
Arlington Banc Corporation,
Arlington, Indiana
Medford Savings Bank,
Medford, Massachusetts
The First Bank of Rolla,
Rolla, North Dakota
Security National Bank of
Sapulpa,
Sapulpa, Oklahoma
City State Bank,
Martin, Tennessee
The West Florida Bank,
Pensacola, Florida
Liberty National Bank,
Charleston, South Carolina
Bank of Pensacola,
Pensacola, Florida
Central Bank of Volusia County,
South Daytona, Florida
The Bank of Tampa,
Tampa, Florida
Bank of Milan,
Milan, Georgia
First BancCrossville, Inc.,
Crossville, Tennessee
Western Security Interim Bank,
National Association,
Burbank, California
Western Security Bank, National
Association,
Burbank, California
New York
May 22, 1987
Chicago
May 27, 1987
Cleveland
June 23, 1987
Atlanta
May 27, 1987
Philadelphia
May 15, 1987
Chicago
June 2, 1987
Boston
June 18, 1987
Minneapolis
May 19, 1987
Kansas City
May 21, 1987
St. Louis
June 4, 1987
Atlanta
June 1, 1987
Richmond
May 29, 1987
Atlanta
May 22, 1987
Atlanta
May 22, 1987
Atlanta
June 5, 1987
Atlanta
June 17, 1987
St. Louis
May 29, 1987
San Francisco
June 19, 1987
Legal Developments
683
Section 4
Applicant
Alex Brown Financial Group,
Sacramento, California
Banco Nacional de Mexico,
S.N.C.,
Mexico City, Mexico
Banamex Holding Company,
Los Angeles, California
Ammex Holding Company,
Los Angeles, California
Ellinwood Bankshares, Inc.,
Ellinwood, Kansas
Fidelcor, Inc.,
Philadelphia, Pennsylvania
First Union Corporation,
Charlotte, North Carolina
F.N.B. Corporation,
Hermitage, Pennsylvania
Lake Ariel Bancorp,
Lake Ariel, Pennsylvania
O'Neill Properties, Inc.,
Minneapolis, Minnesota
Security Bancshares, Inc.,
Des Arc, Arkansas
United Community Financial
Corporation,
Wayland, Michigan
Westdeutsche Landesbank
Girozentrale,
Dusseldorf, West Germany
Nonbanking
Company/Activity
River City Money Management
Company,
Sacramento, California
issuance of consumer-type
payment instruments
Ellinwood Insurance Agency,
Inc.,
Ellinwood, Kansas
sale of general insurance
Lazere Financial Corporation,
New York, New York
Business Life Insurance
Company of America,
Charlotte, North Carolina
Northwestern Services
Corporation,
Charlotte, North Carolina
Mortgage Service Corporation of
Pittsburgh,
Pittsburgh, Pennsylvania
L.A. Lease, Inc.
Lake Ariel, Pennsylvania
personal property leasing
Meierhenry Agency, Inc.,
O'Neill, Nebraska
sale of general insurance
Security Insurance Agency of
Des Arc, Inc.,
Des Arc, Arkansas
Mclntyre & Associates
Insurance,
Clarksville, Michigan
general insurance activities
Vertex Business Systems, Inc.
New York, New York
data processing activities
Reserve
Bank
Effective
Date
San Francisco
May 22, 1987
San Francisco
April 27, 1987
Kansas City
June 17, 1987
Philadelphia
June 11, 1987
Richmond
June 23, 1987
Cleveland
June 19, 1987
Philadelphia
May 19, 1987
Kansas City
June 5, 1987
St. Louis
June 22, 1987
Chicago
May 26, 1987
New York
June 12, 1987
684
Federal Reserve Bulletin • August 1987
Sections 3 and 4
Bank(s)/Nonbanking
Company
Applicant
First of America Bank
Corporation,
Kalamazoo, Michigan
First of America
Bancorporation-Illinois, Inc.
Libertyville, Illinois
ORDERS APPROVED
By Federal Reserve
BancServe Group, Inc.,
Rockford, Illinois
Boone State Bank,
Belvidere, Illinois
City National Bank & Trust Co.
of Rockford,
Rockford, Illinois
BancServe Credit Life Insurance
Company,
Rockford, Illinois
UNDER BANK MERGER
Chicago
Effective
Date
May 29, 1987
ACT
Banks
Applicant
Chase Bank of Ohio,
Mentor, Ohio
Sandusky Interim Bank,
Sandusky, Ohio
PENDING
Reserve
Bank
CASES INVOLVING
Reserve
Bank
Bank(s)
Atrium I Branch
Cincinnati, Ohio
Bank One, Milford, N.A.,
Milford, Ohio
The Citizens Banking Company,
Sandusky, Ohio
THE BOARD
OF
Elfective
Date
Cleveland
June 18, 1987
Cleveland
May 28, 1987
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.
Securities Industry Association v. Board of Governors, et al. No. 87-4041 and consolidated cases
(2d Cir., filed May 1, 1987).
Securities Industry Association v. Board of Governors, et al., No. 87-1169 (D.C. Cir., filed April 17,
1987).
Jones v. Volcker, No. 87-0427 (D.D.C., filed Feb. 19,
1987).
Bankers Trust New York Corp. v. Board of Governors,
No. 87-1035 (D.C. Cir., filed Jan. 23, 1987).
Securities Industry Association v. Board of Governors, et al., No. 87-1030 (D.C.Cir., filed Jan. 20,
1987).
Grimm v. Board of Governors, No. 87-4006 (2nd Cir.,
filed Jan. 16, 1987).
Independent Insurance Agents of America, et al. v.
Board of Governors, Nos. 86-1572, 1573, 1576
(D.C. Cir., filed Oct. 24, 1986).
Securities Industry Association v. Board of Governors, No. 86-2768 (D.D.C., filed Oct. 7, 1986).
Independent Community Bankers Association of
South Dakota v. Board of Governors, No. 86-5373
(8th Cir., filed Oct. 3, 1986).
Jenkins v. Board of Governors, No. 86-1419 (D.C.
Cir., filed July 18, 1986).
Securities Industry Association v. Board of Governors, No. 86-1412 (D.C. Cir., filed July 14, 1986).
Legal Developments
Adkins v. Board of Governors, No. 86-3853 (4th Cir.,
filed May 14, 1986).
Optical Coating Laboratory, Inc. v. United States,
No. 288-86C (U.S. Claims Ct., filed May 6, 1986).
CBC, Inc. v. Board of Governors, No. 86-1001 (10th
Cir., filed Jan. 2, 1986).
Myers, et al. v. Federal Reserve Board, No. 85-1427
(D. Idaho, filed Nov. 18, 1985).
Souser, et al. v. Volcker, et al., No. 85-C-2370, et al.
(D. Colo., filed Nov. 1, 1985).
Podolak v. Volcker, No. C85-0456, et al. (D. Wyo.,
filed Oct. 28, 1985).
Kolb v. Wilkinson, et al., No. C85-4184 (N.D. Iowa,
filed Oct. 22, 1985).
Farmer v. Wilkinson, et al., No. 4-85-CIVIL-1448
(D. Minn., filed Oct. 21, 1985).
Kurkowski v. Wilkinson, et al., No. CV-85-0-916
(D. Neb., filed Oct. 16, 1985).
Alfson v. Wilkinson, et al., No. Al-85-267 (D. N.D.,
filed Oct. 8, 1985).
685
Independent Community Bankers Associaton of South
Dakota v. Board of Governors, No. 84-1496 (D.C.
Cir., filed Aug. 7, 1985).
Urwyler, et al. v. Internal Revenue Service, et al., No.
85-2877 (9th Cir., filed July 18, 1985).
Wight, et al. v. Internal Revenue Service, et al., No.
85-2826 (9th Cir., filed July 12, 1985).
Florida Bankers Association v. Board of Governors,
No. 84-3883 and No. 84-3884 (11th Cir., filed Feb.
15, 1985).
Florida Department of Banking v. Board of Governors, No. 84-3831 (11th Cir., filed Feb. 15, 1985),
and No. 84-3832 (11th Cir., filed Feb. 15, 1985).
Lewis v. Volcker, et al., No. 86-3210 (6th Cir., filed
Jan. 14, 1985).
Brown v. United States Congress, et al., No. 84-28876(IG) (S.D. Cal., filed Dec. 7, 1984).
Melcher v. Federal Open Market Committee, No.
84-1335 (D.D.C., filed Apr. 30, 1984).
A1
Financial and Business Statistics
WEEKLY REPORTING
CONTENTS
Domestic
MONEY
Financial
Statistics
STOCK AND BANK
CREDIT
A3 Reserves, money stock, liquid assets, and debt
measures
A4 Reserves of depository institutions, Reserve
Bank credit
A5 Reserves and borrowings—Depository
institutions
A6 Selected borrowings in immediately available
funds—Large member banks
POLICY
INSTRUMENTS
A7 Federal Reserve Bank interest rates
A8 Reserve requirements of depository institutions
A9 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
MONETARY
AND CREDIT
AGGREGATES
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock, liquid assets, and debt measures
A15 Bank debits and deposit turnover
A16 Loans and securities—All commercial banks
COMMERCIAL
BANKING
INSTITUTIONS
A17 Major nondeposit funds
A18 Assets and liabilities, last-Wednesday-of-month
series
A19
A20
A21
A22
COMMERCIAL
BANKS
Assets and liabilities
All reporting banks
Banks in'New York City
Branches and agencies of foreign banks
Gross demand deposits—individuals,
partnerships, and corporations
FINANCIAL
MARKETS
A23 Commercial paper and bankers dollar
acceptances outstanding
A23 Prime rate charged by banks on short-term
business loans
A24 Interest rates—money and capital markets
A25 Stock market—Selected statistics
A26 Selected financial institutions—Selected assets
and liabilities
FEDERAL
FINANCE
A28
A29
A30
A30
Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types and
ownership
A31 U.S. government securities dealers—
Transactions
A32 U.S. government securities dealers—Positions
and financing
A33 Federal and federally sponsored credit
agencies—Debt outstanding
SECURITIES MARKETS AND
CORPORATE
FINANCE
A34 New security issues—State and local
governments and corporations
A35 Open-end investment companies—Net sales and
asset position
A3 5 Corporate profits and their distribution
56
Federal Reserve Bulletin • August 1987
A36 Nonfinancial corporations—Assets and
liabilities
A36 Total nonfarm business expenditures on new
plant and equipment
A37 Domestic finance companies—Assets and
liabilities and business credit
A54 Foreign official assets held at Federal Reserve
Banks
A55 Foreign branches of U.S. banks—Balance sheet
data
A57 Selected U.S. liabilities to foreign official
institutions
REAL
REPORTED BY BANKS IN THE UNITED
ESTATE
A57
A58
A60
A61
A3 8 Mortgage markets
A39 Mortgage debt outstanding
CONSUMER
INSTALLMENT
STATES
CREDIT
A40 Total outstanding and net change
A41 Terms
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
Domestic
SECURITIES HOLDINGS
Nonfinancial
SELECTED
Statistics
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
Statistics
AND
TRANSACTIONS
A65 Foreign transactions in securities
A66 Marketable U.S. Treasury bonds and notes—
Foreign transactions
INTEREST AND EXCHANGE
RATES
A67 Discount rates of foreign central banks
A67 Foreign short-term interest rates
A68 Foreign exchange rates
A69 Guide to Tabular
Statistical
Releases,
Tables
Presentation,
and
Special
SUMMAR Y STATISTICS
SPECIAL
A53 U.S. international transactions—Summary
A54 U.S. foreign trade
A54 U.S. reserve assets
A70 U.S. branches and agencies of foreign banks,
March 31, 1987
TABLES
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
Q2
1
2
3
4
Reserves of depository
Total
Required
Nonborrowed
Monetary base 3
S
6
7
8
9
Concepts
Ml
M2
M3
L
Debt
Q4
Q3
1987
Ql'
Jan/
Feb/
Mar/
Apr.
May
institutions'
liquid assets,
18.7
20.7
18.6
9.1
and
21.0
21.9
21.3
9.7
24.3
22.8
25.3
11.0
16.4
16.5
18.5
11.3
15.3
22.3
20.9
14.6
-.2
-3.3
.3
7.6
-.4
5.9
.2
2.9
23.3'
25.5
13.6'
9.9
8.2
3.0
7.4
8.7
15.5
9.4
8.7
7.1
10.0'
of money,
Nontransaction
10 M2 5
11 M3 only 6
1987
1986
16.5
10.6
9.7'
8.1'
12.6'
17.0
9.2
8.0
8.2
12.8'
13.1
6.3
6.4
6.3
10.6
11.8
9.3
8.9
9.7
10.8
-.5
-.4
1.3
2.1
6.7
3.4
1.4
1.8
-3.0
5.7
17.7
6.0'
5.9'
4.6
8.9
4.5
.6
4.9
n.a.
n.a.
7.5
5.9'
8.6
6.2'
6.6
3.1'
3.9
6.8
8.5
7.1
-.4
8.5
.6
3.3
2.0'
5.3'
-.8
22.2
debt4
components
Time and savings
deposits
Commercial banks
Savings 7
Small-denomination time 8
Large-denomination t i m e 9 1 0
Thrift institutions
Savings 7
15
Small-denomination time
16
Large-denomination time 9
17
12
13
14
Debt
components4
18 Federal
19 Nonfederal
20 Total loans and securities at commercial b a n k s ' 1
13.4
-2.5
-3.5
25.0
-7.5
-1.5
36.9
-10.7
.1'
37.3
-4.9
9.7
41.2
.0
16.0
34.5
-6.9
1.2
28.5
-8.6
12.2
27.8
-8.3
27.7
16.0
-1.3
18.4
16.0
.3
11.2
21.0
-3.4
2.8
23.2'
-6.4
-7.0'
27.3
-4.6
-9.7
28.9
-4.9
-10.0
32.1
-3.2
-14.0
28.0
.2
-8.7
30.5
1.2'
-19.1
16.9
1.2
2.4
12.6'
12.9'
9.1
10.0
10.7
10.1
7.4
11.8
16.1
5.2
7.1
.9
3.7
6.3
3.8
11.6
9.5'
4.1
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 C R R , 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:
M l : (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 O C D liabilities.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U . S . banks worldwide, Money Market Deposit Accounts
(MMDAs), savings and small-denomination time deposits (time deposits—including retail RPs—in amounts of less than $100,000), and balances in both taxable and
tax-exempt general purpose and broker/dealer money market mutual funds.
Excludes individual retirement accounts (IRA) and Keogh balances at depository
institutions and money market f u n d s . Also excludes all balances held by U.S.
14.5
12.1'
10.6
6.5
9.6
11.9
n.a.
n.a.
7.4
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 f u n d s .
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 B o a r d ' s flow of f u n d s accounts. Debt
data are based on monthly averages. G r o w t h 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), M M D A s , 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 f u n d s .
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
Domestic Financial Statistics • August 1987
1.11
RESERVES OF DEPOSITORY INSTITUTIONS A N D RESERVE BANK CREDIT
Millions of dollars
M o n t h l y a v e r a g e s of
daily figures
W e e k l y a v e r a g e s of daily figures f o r w e e k e n d i n g
Factors
1987
Apr.
May
A p r . 15
A p r . 22
A p r . 29
May 6
M a y 13
M a y 20
M a y 27
S U P P L Y I N G RESERVE F U N D S
1 Reserve Bank credit
221,583
230,049
241,800
227,243
232,065
233,864
251,207
245,284
239,658
195,925
195,619
306
7,772
7,719
53
203,630
1,968
8,220
7,703
517
213,797
206,318
7,479
10.065
7,683
2,382
201,744
201,299
445
7,862
7,714
148
204,393
202,535
1,858
8,195
7,701
494
207,658
205,270
2,388
8,374
7,683
691
220,047
206,068
13,979
11,516
7,683
3,833
216,195
206,051
10,144
10,785
7,683
3,102
212,250
205,674
6,576
10,011
7,683
2,328
535
466
16,885
11,083
5,018
17,711
2
U.S. government securities'
3
Bought outright
4
Held under repurchase agreements
5
F e d e r a l a g e n c y obligations
Bought outright
6
7
Held under repurchase agreements
Acceptances
8
9
Loans
10
Float
11
Other Federal Reserve assets
12 Gold s t o c k 2
13 Special drawing rights certificate account
14 T r e a s u r y c u r r e n c y o u t s t a n d i n g
872
604
16,723
11,079
5,018
17,744
1,179
645
16,114
11,073
5,018
17,795
693
224
16,720
11,078
5,018
17,738
1,219
1,512
16,746
11,078
5,018
17,748
798
-48
17,082
11,076
5,018
17,758
312
17,312
11,076
5,018
17,769
768
210
17,327
11,074
5,018
17,783
891
1,016
15,491
11,072
5,018
17,797
207,265
506
209,684
530
212,064
523
210,111
531
210,281
534
209,620
531
210,458
528
211,745
528
212,004
525
3,161
238
7,163
279
16,028
314
3,815
202
4,758
270
13,312
354
22,844
403
21,006
317
14,940
286
2,026
442
2,211
424
2,095
407
2,318
399
2,041
451
1,993
390
2,447
551
1,951
375
2,041
374
0
201,662
0
0
0
0
0
0
0
2,021
0
ABSORBING RESERVE F U N D S
15 C u r r e n c y in circulation
16 T r e a s u r y c a s h holdings 2
D e p o s i t s , o t h e r t h a n r e s e r v e b a l a n c e s , with
Federal Reserve Banks
17
Treasury
18
Foreign
19
S e r v i c e - r e l a t e d b a l a n c e s and
adjustments
20
Other
21 O t h e r F e d e r a l R e s e r v e liabilities and
capital
22 R e s e r v e b a l a n c e s with F e d e r a l
Reserve Banks3
6,345
6,896
6,910
6,762
7,018
7,043
7,104
6,988
6.932
35,412
36,701
37,344
36,939
40,556
34,474
40,736
36,248
36,443
End-of-month
figures
Wednesday
Apr.
May
A p r . 15
A p r . 22
A p r . 29
figures
May 6
M a y 13
M a y 20
M a y 27
S U P P L Y I N G RESERVE F U N D S
23 Reserve Bank credit
227,578
249,706
231,880
229,625
242,619
243,550
246,508
245,848
230,812
24
25
26
27
28
29
30
31
32
33
196,409
196,409
218,883
205,112
13,771
11,039
7,683
3,356
207,304
207,304
203,917
202,818
1,099
8,198
7,714
484
209,978
202,034
7,944
10,028
7,683
2,345
213,824
204,590
9,234
10,436
7,683
2,753
216,189
207,218
8,971
10,473
7,683
2,790
215,517
205,862
9,655
11,669
7,683
3,986
203,105
200,054
3,051
9,116
7,683
1,433
1,587
5,241
16,622
2,464
126
17,914
832
922
15,139
464
294
16,752
5,627
-102
17,088
1,096
691
17,503
1,742
1,006
17,098
751
364
17,547
1,591
1,846
15,154
11,081
5,018
17,735
11,076
5,018
17,767
11,070
5,018
17,823
11.078
5,018
17,747
11,077
5,018
17,757
11,076
5,018
17,767
11,076
5,018
17,781
11,073
5,018
17,795
11,071
5,018
17,809
207,818
518
210,265
531
213,547
514
210,460
534
210,179
531
209,899
529
211,250
529
212,077
526
212,355
520
3,576
268
29,688
343
6,383
320
4,056
285
9,431
225
25,802
504
23,043
421
19,914
258
12,608
1,817
577
1,812
533
1,779
372
1,806
557
1,810
522
1,811
527
,812
1,791
394
,793
298
6,682
7,057
6,511
6,677
7,037
7,165
6,810
6,676
6,579
40,156
33,337
36,365
39,092
46,736
31,172
36,100
38,097
30,260
U.S. government securities'
B o u g h t outright
Held under repurchase a g r e e m e n t s . . .
F e d e r a l a g e n c y obligations
B o u g h t outright
Held under repurchase a g r e e m e n t s . . .
Acceptances
Loans
Float
Other Federal Reserve assets
34 Gold s t o c k 2
35 Special drawing rights certificate account
36 T r e a s u r y c u r r e n c y o u t s t a n d i n g
..
0
7,719
7,719
0
0
0
7,683
7,683
0
0
0
0
0
0
0
0
0
ABSORBING RESERVE F U N D S
37 C u r r e n c y in circulation
38 T r e a s u r y c a s h holdings 2
Deposits, other than reserve balances with
Federal Reserve Banks
39
Treasury
40
Foreign
41
Service-related balances and
adjustments
Other
42
43 O t h e r F e d e r a l R e s e r v e liabilities a n d
capital
44 R e s e r v e b a l a n c e s with F e d e r a l
Reserve Banks3
1. Includes securities l o a n e d — f u l l y g u a r a n t e e d by U . S g o v e r n m e n t s e c u r i t i e s
pledged with F e d e r a l R e s e r v e B a n k s — a n d excludes
a n y securities sold a n d
s c h e d u l e d t o be b o u g h t b a c k u n d e r m a t c h e d s a l e - p u r c h a s e t r a n s a c t i o n s .
2. R e v i s e d f o r p e r i o d s b e t w e e n O c t o b e r 1986 and April 1987. A t times during
this interval, o u t s t a n d i n g gold c e r t i f i c a t e s w e r e i n a d v e r t e n t l y in e x c e s s of the gold
418
297
s t o c k . R e v i s e d d a t a not i n c l u d e d in this t a b l e a r e available f r o m t h e Division of
R e s e a r c h and Statistics, B a n k i n g S e c t i o n .
3. E x c l u d e s required clearing b a l a n c e s and a d j u s t m e n t s to c o m p e n s a t e f o r
float.
NOTE. F o r a m o u n t s of c u r r e n c y a n d coin held a s r e s e r v e s , see t a b l e 1.12.
Money Stock and Bank Credit
1.12
RESERVES A N D BORROWINGS
A5
D e p o s i t o r y Institutions
Millions of dollars
Monthly averages 8
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks 1
Total vault c a s h Vault 1
Surplus 4
Total r e s e r v e s
Required reserves
E x c e s s reserve balances at Reserve Banks 6
Total borrowings at R e s e r v e Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks 7
1984
1985
1986
Dec.
Reserve classification
1986
1987
Dec.
Dec.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
21,738
22.313
18,958
3,355
40,696
39,843
853
3.186
113
2.604
27.620
22.953
20.522
2.431
48,142
47.085
1.058
1.318
56
499
37.360
24.071
22.199
1,872
59.560
58,191
1.369
827
38
303
32.947
23.753
21.676
2.078
56.623
53.877
746
841
99
497
34,803
23.543
21,595
1,947
56,399
55,421
978
752
70
418
37.360
24,071
22.199
1.872
59,560
58.191
1.369
827
38
303
36.584
25.049
23.084
1.965
59.668
58.600
1.068
580
34
22 s
33.625
25,889
23.435
2,454
57,060
55,849
1,211
556
71
283
35,318
23,759
21,743
2,016
57.061
56.146
916
527
91
264
37,807
23,353
21,587
1,767
59,393
58.566
827
993
120
270
Biweekly averages of daily figures for w e e k s ending
1987
Feb. 11
11
12
13
14
15
16
17
18
19
20
Reserve balances with Reserve Banks 1
Total vault c a s f r
Vault'
Surplus 4
Total reserves^
Required r e s e r v e s
E x c e s s reserve balances at Reserve Banks 6
Total borrowings at Reserve Banks
Seasonal borrowings at R e s e r v e Banks
E x t e n d e d credit at Reserve Banks 7
Feb. 25
Mar. 11
Mar. 25
Apr. 8
Apr. 22
May 6
May 20
J u n e 3''
June 17'"
32,991
27,327
24.677
2.650
57.667
56.208
1.459
425
56
265
33.742
25.237
22,857
2.380
56,599
55,530
1,070
680
81
299
35.400
23.662
21.582
2.080
56,982
56,021
961
466
83
275
34,809
24,077
22.038
2.039
56.847
55,866
981
528
96
263
36,358
23,198
21,350
1,848
57,708
57.029
679
641
98
248
38.746
23.479
21,761
1.719
60,506
59.703
804
956
110
267
37.612
23.289
21,519
1,770
59.131
58.115
1,016
1.410
159
299
36.327
23.552
21,801
1.751
58.128
57.066
1.063
830
190
276
36.022
24.094
22.151
1.943
58.173
57.048
1.125
1.094
226
297
37,189
23.668
21,976
1,692
59.165
58.307
858
635
233
254
1. Excludes required clearing balances and a d j u s t m e n t s to c o m p e n s a t e for
float.
2. Dates refer to the m a i n t e n a n c e periods in which the vault cash can be used
to satisfy reserve r e q u i r e m e n t s . U n d e r c o n t e m p o r a n e o u s reserve requirements,
m a i n t e n a n c e periods end 30 d a y s a f t e r 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
a m o u n t 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 r e s e r v e s not adjusted for discontinuities consist of reserve balances
with Federal R e s e r v e Banks, which exclude required clearing balances and
a d j u s t m e n t s to c o m p e n s a t e for float, plus vault cash used to satisfy reserve
r e q u i r e m e n t s . 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 r e s e r v e s during the
maintenance period at institutions having no required r e s e r v e balances.
6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy
reserve requirements less required r e s e r v e s .
7. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the e x t e n d e d credit program to help
depository institutions deal with sustained liquidity p r e s s u r e s . B e c a u s e there is
not the same need to repay such borrowing promptly as there is with traditional
short-term a d j u s t m e n t credit, the money market impact of e x t e n d e d credit is
similar to that of n o n b o r r o w e d reserves.
8. Before February 1984. data are prorated monthly a v e r a g e s of weekly
averages; beginning February 1984. data are prorated monthly a v e r a g e s of
biweekly averages.
NOTF.. These data also a p p e a r in the B o a r d ' s H.3 (502) release. For a d d r e s s , see
inside front cover.
A6
Domestic Financial Statistics • August 1987
1.13
S E L E C T E D B O R R O W I N G S IN I M M E D I A T E L Y A V A I L A B L E F U N D S
Large M e m b e r B a n k s 1
Averages of daily figures, in millions of dollars
1987 week ending Monday
Maturity and source
Feb. 23
1
2
3
4
Federal funds purchased, repurchase agreements,
and
oilier selected borrowing in immediately
available
funds
From commercial banks in the United States
For one day or under continuing contract
For all other maturities
From other depository institutions, foreign banks and
foreign official institutions, and United States
government agencies
For one day or under continuing contract
For all other maturities
Mar. 2
Mar. 9
Mar. 16
Mar. 23
Mar. 30
Apr. 6
Apr. 13
Apr. 20
77,242
8,315
75.122
9,130
80.561
8.677
78.545
8.385
76.854
8.387
74.628
8.312
80.467
8,639
81.639
8,974
80.380
9,877
39.390
6,021
40,802
6.631
43,033
6.504
42.504
7,083
39.322
6,917
39,651
7,412
38.893
7,922
42,511
7.974
35,807
8,287
Repurchase agreements on United States
government
and federal agency securities in immediately
available funds
Brokers and nonbank dealers in securities
For one day or under continuing contract
For all other maturities
All other customers
For one day or under continuing contract
For all other maturities
14.289
9,258
14,033
10.649
12.682
9.714
12,226
9.638
11,325
10,345
12.120
10,525
12.806
9,347
12.556
9.869
12,495
13,167
27.380
9.880
27.176
10,098
27.408
9,578
26.848
9,209
25.636
9.399
25.813
9.874
26.223
9,940
26.049
10.332
21,149
12,483
MEMO: Federal funds loans and resale agreements in
immediately available funds in maturities of one day
or under continuing contract
9 To commercial banks in the United States
10 To all other specified c u s t o m e r s -
28,649'
11.791'
27,373'
11.718'
27.994'
10.721'
26.854'
11.485'
25,703''
11.926'
23,914'
10.282'
29,107
11.329
,/28,649
11.124
5
6
7
8
1. Banks with assets of $1 billion or more as of Dec. 31, 1977.
y
30,933
11,615
2. Brokers and nonbank dealers in securities; other depository institutions;
foreign banks and official institutions; and United States government agencies.
Policy Instruments
1.14
Al
FEDERAL RESERVE BANK INTEREST RATES
Percent per annum
C u r r e n t and previous levels
E x t e n d e d credit"
S h o r t - t e r m a d j u s t m e n t credit and
s e a s o n a l credit 1
First 60 d a y s of
borrowing
Federal R e s e r v e
Bank
N e x t 90 d a y s of
borrowing
A f t e r 150 d a y s
Effective date for
current rates
R a t e on
6/26/87
Effective
date
Previous
rate
Rate on
6/26/87
Previous
rate
Rate on
6/26/87
Previous
rate
R a t e on
6/26/87
Previous
rate
5V:
8/21/86
8/21/86
8/22/86
8/21/86
8/21/86
8/21/86
6
5 Vi
6
bVl
7
7Vi
8
Boston
N e w York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. L o u i s
Minneapolis
K a n s a s City
Dallas
San Francisco . . .
5V2
8/21/86
8/22/86
8/21/86
8/21/86
8/21/86
8/21/86
6
5Vi
6
6V2
IVz
7
8/21/86
8/21/86
8/22/86
8/21/86
8/21/86
8/21/86
8/21/86
8/22/86
8/21/86
8/21/86
8/21/86
8/21/86
8
Range of rates in recent y e a r s '
Range(or
level)—
All F . R .
Banks
F.R.
Bank
of
N.Y.
In e f f e c t D e c . 31, 1973
1 9 7 4 — A p r . 25
30
Dec. 9
16
7V:
71/2-8
8
7-V4-8
7%
71/2
8
8
73/4
73/4
6
10
24
5
Feb.
7
M a r . 10
14
M a y 16
23
7'/4-7%
7V4-7V4
71/4
6-V4-71/4
6%
6V4-63/4
61/4
6-6V4
6
7%
71/4
7V4
6-V4
63/4
6'/4
6V4
6
6
19
23
N o v . 22
26
51/2-6
51/2
5V4-51/>
51/4
51/2
5V2
51/4
51/4
1977—Aug. 30
31
Sept. 2
O c t . 26
5y4-53/4
5IA-5-V4
5'/4
6
5 V4
53/4
53/4
6
6-6V2
6V2
6V> 7
7
7-71/4
71/4
6V2
6 Vl
7
7
7'/4
71/4
Effective date
1975—Jan.
1976—Jan.
1978—Jan.
May
July
July
9
20
11
12
3
10
Range(or
level)—
All F . R .
Banks
F.R.
Bank
of
N.Y.
1978-- A u g . 71
Sept. 77
O c t . 16
70
Nov. 1
73/4
8
8-8V2
8V2
8i/>-9ih
91/2
73/4
8
81/2
8Vt!
91/2
9Vi
1979-- J u l y ?0
Aug. 17
20
Sept. 19
71
8
Oct.
10
10
10-10'/!
101/;
10Vi-ll
11
11-12
12
10
101/!
101/!
11
11
12
12
Effectiv
15
19
M a y 79
30
June n
16
July 78
79
Sept. 76
N o v . 17
Dec. "i
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
8
?
6
4
13-14
14
13-14
13
12
14
14
13
13
12
1980-- F e b .
1981-—May
Nov.
Dec.
1. A f t e r May 19, 1986, the highest rate within the s t r u c t u r e of discount rates
m a y be c h a r g e d on a d j u s t m e n t credit l o a n s of unusual size that result f r o m a m a j o r
o p e r a t i n g p r o b l e m at the b o r r o w e r ' s facility.
A t e m p o r a r y simplified s e a s o n a l p r o g r a m w a s established on M a r . 8, 1985, and
the interest rate w a s a fixed rate V> p e r c e n t a b o v e the rate on a d j u s t m e n t credit.
~.
T h e p r o g r a m w a s r e - e s t a b l i s h e d on F e b . 18, 1986 and again on Jan. 28, 1987; the
rate m a y be e i t h e r the s a m e as that f o r a d j u s t m e n t credit or a fixed rate Vi p e r c e n t
higher.
2. Applicable to a d v a n c e s w h e n e x c e p t i o n a l c i r c u m s t a n c e s or practices involve
only a p a r t i c u l a r d e p o s i t o r y institution a n d to a d v a n c e s w h e n an institution is
u n d e r s u s t a i n e d liquidity p r e s s u r e s . A s a n alternative, f o r loans o u t s t a n d i n g f o r
m o r e t h a n 150 d a y s , a F e d e r a l R e s e r v e Bank may c h a r g e a flexible rate that t a k e s
into a c c o u n t r a t e s on m a r k e t s o u r c e s of f u n d s , but in n o c a s e will the rate c h a r g e d
be less t h a n the basic rate plus o n e p e r c e n t a g e point. W h e r e credit provided to a
particular d e p o s i t o r y institution is a n t i c i p a t e d to be o u t s t a n d i n g f o r a n unusually
p r o l o n g e d period a n d in relatively large a m o u n t s , the time period in which e a c h
Effective date
1982—July
20
23
2
3
16
27
30
O c t . 12
13
N o v . 22
26
D e c . 14
15
17
Aug.
1984—Apr.
9
13
N o v . 21
26
D e c . 24
1985—May
20
24
1986—Mar.
7
10
A p r . 21
23
July 11
Aug. 21
22
In e f f e c t J u n e 26, 1987
Range(or
level)—
All F . R .
Banks
F.R.
Bank
of
N.Y.
ll 1 /!—12
111*
11-111/!
11
1()1/!
10-101/!
10
9Vt-10
91h
9-9V2
9
8V2-9
8W9
8^2
111/!
11
11
101*
10
10
91/1
91/!
9
9
9
8V2
81/2
8V5-9
9
81/2-9
i$Vl
8
nvi
9
9
81/!
81/2
8
7V2-S
IVz
71/2
7-71/2
7
51/2
7
7
61/2
6'h
6
51/!
51/!
51/2
51/2
6Vi-7
6V2
6
5Vl-6
IVi
rate u n d e r this s t r u c t u r e is applied m a y be s h o r t e n e d . S e e section 201.3(b)(2) of
Regulation A.
3. R a t e s f o r s h o r t - t e r m a d j u s t m e n t credit. F o r d e s c r i p t i o n a n d earlier d a t a s e e
the following publications of the B o a r d of G o v e r n o r s : Bunking and
Monetary
Statistics,
1914-1941, a n d 1941-1970; Annual Statistical
Digest, 1970-1979,
1980,
1981, and 1982.
In 1980 and 1981. the F e d e r a l R e s e r v e applied a s u r c h a r g e to s h o r t - t e r m
a d j u s t m e n t credit b o r r o w i n g s by institutions with d e p o s i t s of $500 million or m o r e
that had b o r r o w e d in s u c c e s s i v e w e e k s or in m o r e t h a n 4 w e e k s in a c a l e n d a r
q u a r t e r . A 3 p e r c e n t s u r c h a r g e w a s in e f f e c t f r o m M a r . 17, 1980, t h r o u g h May 7,
1980. T h e r e w a s n o s u r c h a r g e until N o v . 17. 1980, w h e n a 2 p e r c e n t s u r c h a r g e w a s
a d o p t e d ; the s u r c h a r g e w a s s u b s e q u e n t l y raised to 3 p e r c e n t o n D e c . 5, 1980, a n d
to 4 p e r c e n t on May 5, 1981. T h e s u r c h a r g e w a s r e d u c e d to 3 p e r c e n t e f f e c t i v e
Sept. 22, 1981, and to 2 p e r c e n t e f f e c t i v e O c t . 12. A s of O c t . 1, the f o r m u l a f o r
applying the s u r c h a r g e w a s c h a n g e d f r o m a c a l e n d a r q u a r t e r to a m o v i n g 13-week
period. T h e s u r c h a r g e w a s eliminated o n N o v . 17, 1981.
A8
Domestic Financial Statistics • August 1987
1.15
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS 1
Percent of deposits
Type of deposit, and
deposit interval"
Depository institution requirements
after implementation of the
Monetary Control Act
Percent of
deposits
3
12
10/6/86
10/6/83
3
accounts,
12/30/86
12/30/86
3
0
Net transaction
Effective date
11/13/80
4
Nonpersonal
time deposits'*
By original maturity
Eurocurrency
liabilities
1. Reserve requirements in effect on Dec. 31, 1986. Required reserves must be
held in the form of deposits with Federal Reserve Banks or vault cash.
N o n m e m b e r s may maintain reserve balances with a Federal Reserve Bank
indirectly on a pass-through basis with certain approved institutions. For previous
reserve requirements, see earlier editions of the Annual Report and of the
FEDERAL RESERVE BULLETIN. Under provisions of the Monetary Control Act.
depository institutions include commercial banks, mutual savings banks, savings
and loan associations, credit unions, agencies and branches of foreign banks, and
Edge corporations.
2. The Garn-St. Germain Depository Institutions Act of 1982 (Public Law
97-320) requires that $2 million of reservable liabilities (transaction accounts,
nonpersonal time deposits, and Eurocurrency liabilities) of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabilities subject to this zero percent reserve requirement each year for the succeeding calendar year by 80 percent of the percentage
increase in the total reservable liabilities of all depository institutions, measured
on an annual basis as of June 30. No corresponding adjustment is to be made in
the event of a decrease. On Dec. 30, 1986, the exemption was raised from $2.6
million to $2.9 million. In determining the reserve requirements of depository
institutions, the exemption shall apply in the following order: (1) net N O W
accounts (NOW accounts less allowable deductions); (2) net other transaction
accounts; and (3) nonpersonal time deposits or Eurocurrency liabilities starting
with those with the highest reserve ratio. With respect to N O W accounts and
other transaction accounts, the exemption applies only to such accounts that
would be subject to a 3 percent reserve requirement.
3. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers in excess of
three per month for the purpose of making payments to third persons or others.
However, MMDAs and similar accounts subject to the rules that permit no more
than six preauthorized, automatic, or other transfers per month, of which no more
than three can be checks, are not transaction accounts (such accounts are savings
deposits subject to time deposit reserve requirements).
4. The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage increase in transaction accounts held by
all depository institutions, determined as of June 30 each year. Effective Dec. 30,
1986, the amount was increased from $31.7 million to $36.7 million.
5. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which a beneficial interest is
held by a depositor that is not a natural person. Also included are certain
transferable time deposits held by natural persons and certain obligations issued
to depository institution offices located outside the United States. For details, see
section 204.2 of Regulation D.
Policy Instruments
1.17
A9
FEDERAL RESERVE OPEN MARKET TRANSACTIONS'
Millions of dollars
1987
1986
1984
T y p e of transaction
1985
1986
Nov.
Oct.
Jan.
Dec.
Feb.
Mar.
Apr.
U . S . TREASURY SECURITIES
Outright transactions (excluding
transactions1
1
2
3
4
Treasury bills
Gross p u r c h a s e s
Gross sales
Exchange
Redemptions
5
i
7
8
9
matched
20,036
8,557
0
7,700
22,214
4,118
0
3,500
22,602
2,502
0
1.000
928
0
0
0
3,318
0
0
0
5,422
0
0
0
997
583
0
0
191
3,581
0
800
1,062
0
0
0
4,226
653
0
0
Others within 1 year
Gross p u r c h a s e s
Gross sales
Maturity shift
Exchange
Redemptions
1,126
0
16,354
-20.840
0
1,349
0
19,763
-17,717
0
190
0
18,673
-20,179
0
0
0
974
-529
0
190
0
2,974
-1,810
0
0
0
1,280
-1,502
0
0
0
611
0
0
0
0
1,855
-4,954
0
0
0
1,762
-1,799
0
1,232
0
1,375
-522
0
10
11
12
13
1 to 5 years
Gross p u r c h a s e s
Gross sales
Maturity shift
Exchange
1,638
0
-13,709
16,039
2,185
0
-17,459
13,853
893
0
-17.058
16,984
0
0
-969
529
893
0
-2,414
1,510
0
0
-1,280
1,502
0
0
-591
0
0
252
-1,650
4,354
0
0
-1,762
1,799
3,642
0
' ' -1,373
522
14
15
16
17
5 to 10 years
Gross p u r c h a s e s
Gross sales
Maturity shift
Exchange
536
300
-2,371
2,750
458
100
-1,857
2,184
236
0
-1,620
2.050
0
0
-5
0
236
0
-560
200
0
0
0
0
0
0
-20
0
0
0
-204
400
0
0
0
0
914
0
-3
0
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
441
0
-275
2,052
293
0
-447
1,679
158
0
0
1,150
0
0
0
0
158
0
0
100
0
0
0
0
0
0
0
0
0
0
0
200
0
0
0
0
669
0
0
0
22
23
24
All maturities
Gross p u r c h a s e s
Gross sales
Redemptions
23,776
8,857
7,700
26,499
4,218
3,500
24,078
2.502
1,000
928
0
0
4,795
0
0
5,422
0
0
997
583
0
191
3,833
800
1.062
0
0
10,683
653
0
Matched
transactions
25 Gross sales
26 Gross purchases
808,986
810,432
866,175
865,968
927,997
927.247
77,262
81,892
60,146
60,232
91,404
88,730
63.865
65.145
82,086
81,387
72,306
73.476
83,822
82,494
Repurchase
agreements2
27 Gross p u r c h a s e s
28 Gross sales
127,933
127,690
134,253
132,351
170,431
160,268
5,670
11,984
16,888
15,471
44,303
32,028
36,373
46,897
0
3,168
5,657
5,657
37,653
23,881
8,908
20,477
29.989
-756
6,298
15,023
-8,830
-8,307
2.231
22,474
0
0
256
0
0
162
0
0
398
0
0
93
0
0
125
0
0
0
0
0
110
0
0
0
0
0
0
0
0
37
11,509
11,328
22,183
20,877
31,142
30,522
952
2,761
1,622
1,274
5.488
3.522
4.714
6,171
0
857
897
897
9,265
5,908
-76
1,144
222
-1,902
223
1,965
-1.567
-857
0
3,320
-418
0
0
0
0
0
0
0
0
0
8,414
21,621
30,211
-2,658
6,522
16,988
-10,397
-9,165
2,231
25,794
29 Net change in U.S. g o v e r n m e n t securities
F E D E R A L A G E N C Y OBLIGATIONS
Outright
transactions
30 Gross p u r c h a s e s
31 Gross sales
32 Redemptions
Repurchase
agreements2
33 Gross p u r c h a s e s
34 Gross sales
35 Net change in federal agency obligations
BANKERS ACCEPTANCES
37 Total net change in System Open Market
Account
1. Sales, r e d e m p t i o n s , and negative figures reduce holdings of the System
Open Market A c c o u n t ; all o t h e r figures increase such holdings. Details may not
add to totals b e c a u s e of rounding.
2. In July 1984 the Open Market Trading Desk discontinued accepting b a n k e r s
acceptances in repurchase agreements,
A44
1.18
DomesticNonfinancialStatistics • August 1987
FEDERAL RESERVE BANKS
C o n d i t i o n and Federal R e s e r v e N o t e S t a t e m e n t s
Millions of dollars
Wednesday
1987
Account
Apr. 29
May 6
End of month
1987
May 13
May 20
May 27
Mar.
Apr.
May
Consolidated condition statement
ASSETS
11,077
5,018
523
11,076
5.018
515
11,074
5,018
516
11.072
5.018
511
11,072
5.018
484
11,081
5,018
569
11,076
5,018
517
11,070
5,018
476
1,096
0
1.742
0
751
0
1.591
0
797
0
1,587
0
2,464
0
832
0
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4
To depository institutions
5
Other
Acceptances—Bought outright
6
Held under repurchase agreements
Federal agency obligations
7
Bought outright
8
Held under repurchase agreements
U.S. government securities
Bought outright
9
Bills
10
Notes
11
Bonds
12
Total bought outright 1
13
Held under repurchase agreements
14 Total U.S. government securities
0
0
0
0
0
0
0
0
7.683
2.753
7.683
2,790
7,683
3,986
7,683
1,433
7.683
1,426
7.719
0
7,683
3.356
7,683
0
104.536
73.378
26,676
204.590
9.234
213,824
107,164
73.378
26,676
207.218
8.971
216,189
105.808
73,378
26,676
205.862
9,655
215.517
100,000
73,303
26,751
200,054
3.051
203,105
105,799
73.303
26,751
205.853
8.901
214.754
102,812
67,673
25,924
196,409
0
196,409
105.058
73,378
26,676
205,112
13,771
218,883
107.250
73,303
26,751
207,304
0
207,304
15 Total loans and securities
225,356
228,404
227,937
213,812
224,660
205,715
232,386
215,819
7.039
675
7.389
674
6.373
678
8.003
677
9.379
678
13,284
671
6,203
675
6,356
678
8.642
8.186
8.231
8,193
8,232
8.637
8.240
6,237
8.195
6,597
9,467
6,484
8,283
8.236
8.035
6,426
266,516
269,500
268,465
253,570
266,083
252,289
272,394
253,878
16 Items in process of collection
17 Bank premises
Other assets
18
Denominated in foreign currencies19
All other 3
20 Total assets
LIABILITIES
193,187
194.513
195,326
195,578
196,882
191,170
193.547
196,714
22
23
24
25
32,983
25.802
504
527
37,912
23,043
421
418
39.888
19,914
258
394
32,053
12,608
297
298
42,957
10.832
355
446
41,973
3,576
268
577
35,149
29.688
343
533
38,144
6,383
320
372
26 Total deposits
59,816
61,794
60,454
45,256
54,590
46,394
65,713
45,219
6.348
3,024
6,383
2,482
6,009
2.524
6,157
2.386
7.822
2.588
8,043
2,219
6,077
2.696
5,434
2,300
262,375
265,172
264,313
249,377
261,882
247,826
268,033
249,667
1.921
1.873
347
1.914
1,873
541
1,918
1.873
361
1,948
1,873
372
1.950
1.873
378
1,916
1,874
673
1,921
1,873
567
1.950
1,873
388
33 Total liabilities and capital accounts
266,516
269,500
268,465
253,570
266,083
252,289
272,394
253,878
34 MEMO: Marketable U.S. government securities held in
custody for foreign and international account
176.544
177,389
179.204
182,993
179,473
175,569
174,715
181,247
21 Federal Reserve notes
Deposits
To depository institutions
U.S. Treasury—General account
Foreign—Official accounts
Other
27 Deferred credit items
28 Other liabilities and accrued dividends 4
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
Federal Reserve note statement
35 Federal Reserve notes outstanding
36
LESS: Held by bank
37
Federal Reserve notes, net
Collateral held against notes net:
38
Gold certificate account
39
Special drawing rights certificate account
40
Other eligible assets
41
U.S. government and agency securities
240.024
46,837
193.187
240.323
45,810
194.513
240,625
45,299
195,326
241.142
45,564
195,578
241.622
44,740
196,882
236,868
45.698
191,170
240,164
46,617
193,547
241.604
44,890
196,714
11,077
5.018
0
177,092
11,076
5.018
0
178.419
11.074
5,018
0
179.234
11,072
5,018
0
179,488
11,072
5.018
0
180,792
11,081
5,018
0
175.071
11,076
5,018
0
177,453
11,070
5,018
0
180,626
42 Total collateral
193,187
194,513
195,326
195,578
196,882
191,170
193,547
196,714
1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Assets shown in this line are revalued monthly at market exchange rates.
3. Includes special investment account at Chicago of Treasury bills maturing
within 90 days.
4. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
NOTE: Some of these data also appear in the Board's H.4.1 (503) release. For
address, see inside front cover.
Federal Reserve Banks
1.19
FEDERAL RESERVE BANKS
All
Maturity Distribution of L o a n and S e c u r i t y H o l d i n g s
Millions of dollars
Wednesday
1987
Type and maturity groupings
End of month
1987
Apr. 29
May 6
May 13
May 20
May 27
Mar. 31
Apr. 30
May 29
1 Loans—Total
2
Within 15 days
3
16 days to 90 days
4
91 days to 1 year
1,096
1,082
14
0
1,742
1,673
69
0
751
668
83
0
1.591
1,577
14
0
797
781
16
0
1,587
1,573
14
0
2.464
2.413
51
0
832
752
80
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. Treasury securities—Total . .
10
Within 15 days 1
11
16 days to 80 days
12
91 days to 1 year
13
Over 1 year to 5 years
14
Over 5 years to 10 years
15
Over 10 years
213.824
19.553
50.056
61,890
41,851
16,538
23,936
216.189
22,775
49,124
62,657
41,159
16,538
23,936
215,517
22,295
51,168
60.421
41.159
16,538
23.936
203,105
13,011
44,389
66,104
41,160
14,430
24,011
214.754
21,002
47,788
66,364
41,160
14.430
24,010
196,409
4,688
53.011
61,450
38,367
15,627
23,266
218.883
21.640
48.780
66.830
41.159
16.538
23.936
207.304
8,970
51.848
66.885
41,160
14,430
24,011
16 Federal agency obligations—Total
17
Within 15 days 1
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
10,436
2,884
669
1,547
3,750
1,306
280
10,473
2,790
794
1,553
3.750
1.306
280
11.669
4.058
762
1,524
3,739
1.306
280
9,116
1,713
554
1,524
3,739
1,306
280
9,109
1,707
532
1,521
3,763
1,306
280
7,719
295
532
1,352
3,918
1,342
280
11.039
3.487
669
1.547
3.750
1.306
280
7.683
281
532
1,521
3,763
1,306
280
1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements.
A44
1.20
DomesticNonfinancialStatistics • August 1987
A G G R E G A T E R E S E R V E S OF DEPOSITORY INSTITUTIONS A N D M O N E T A R Y
BASE
Billions of dollars, averages of daily figures
Item
1983
Dec.
1984
Dec.
1985
Dec.
1986
Nov.
Oct.
1 Total reserves 2
Nonborrowed reserves
3 Nonborrowed reserves plus extended credit-1
4 Required reserves
5 Monetary base 4
Dec.
Jan.
Feb.
Mar.
Apr.
May
57.95
58.35
Seasonally adjustec
A D J U S T E D FOR
->
1987
1986
Dec.
36.16
39.51
46.06
56.17
53.23
54.49
56.17
56.88
56.87
35.38
35.38
35.59
185.38
36.32
38.93
38.66
199.20
44.74
45.24
45.00
217.32
55.34
55.64
54.80
239.51
52.38
52.88
52.48
234.43
53.74
54.16
53.51
236.88
55.34
55.64
54.80
239.51
56.30
56.53
55.82
242.43
56.32
56.60
55.66
243.97
56.85
56.33 56.96
56.59 57.23
55.94 57.13'
244.56 246.59'
57.32
57.60
57.28
248.37
Not seasonally adjusted
6 Total reserves 2
7
8
9
10
Nonborrowed reserves
Nonborrowed reserves plus extended credit 3
Required reserves
Monetary base 4
36.87
40.57
47.24
57.64
52.83
54.59
57.64
58.73
56.09
36.09
36.10
36.31
188.65
37.38
39.98
39.71
202.34
45.92
46.42
46.18
220.82
56.81
57.11
56.27
243.63
51.98
52.48
52.08
233.61
53.84
54.26
53.61
237.50
56.81
57.11
56.27
243.63
58.15
58.38
57.66
243.42
55.53
55.82
54.88
240.82
38.89
40.70
48.14
59.56
54.62
56.40
59.56
59.67
57.06
38.12
38.12
38.33
192.26
37.51
40.09
39.84
204.18
46.82
47.41
47.08
223.53
58.73
59.04
58.19
247.71
53.78
54.15
53.88
237.26
55.65
56.15
55.42
241.27
58.73
59.04
58.19
247.71
59.09
59.32
58.60
246.75
56.50
56.74
55.85
244.22
56.07
58.37
55.54 57.38
55.81
57.65
55.15 57.54
241.93 246.07'
57.30
56.26
56.55
56.22
246.83
N O T A D J U S T E D FOR
CHANGES IN RESERVE REQUIREMENTS 1
11 Total reserves 2
12
13
14
15
Nonborrowed reserves
Nonborrowed reserves plus extended credit 3
Required reserves
Monetary base 4
1. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted f r o m 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
57.06
59.39
56.53 58.40
56.82 58.19
56.15 58.57'
244.98 249.24'
58.34
57.30
58.02
57.26
249.93
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 B o a r d ' 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
1.21
and Credit Aggregates
A13
MONEY STOCK, LIQUID ASSETS, A N D DEBT MEASURES
Billions of dollars, averages of daily figures
1987
1983
Dec.
1984
Dec.
1985
Dec.
1986
Dec.'
Feb/
Mar/'
Apr.'
May
Seasonally adjusted
1 Ml
2 M2
M3
4 L
5 Debt
526.9
2,184.6
2,692.8
3,154.6
5,206.3
557.5
2,369.1
2,985.4
3,529.0
5,946.0
627.0
2,569.5
3,205.5
3.838.9
6.774.9
730.5
2,800.2
3,488.6
4,140.6
7,643.0
737.4
2,821.1
3,518.5
4,181.3
7,754.6
739.5
2,824.3
3,523.6
4,170.9
7,791.3
750.4
2,838.5
3,540.8
4,186.8
7,848.7
753.2
2,839.9
3,555.4
n.a.
n.a.
148.3
4.9
242.3
131.4
158.5
5.2
248.3
145.5
170.6
5.9
272.2
178.3
183.5
6.4
308.3
232.3
187.2
6.7
300.8
242.9
187.7
6.8
299.3
245.7
188.9
6.8
304.0
250.8
190.2
6.7
304.0
252.3
1,657.7
508.2
1,811.5
616.3
1,942.5
636.1
2,069.7
688.4
2,083.7
697.4
2,084.8
699.3
2,088.1
702.4
2,086.7
715.5
6
7
8
9
Ml components
Currency 2
Travelers checks 1
Demand deposits 4
Other checkable deposits 5
10
11
Nontransactions c o m p o n e n t s
In M2 6
In M3 only 7
12
13
Savings deposits 8
Commercial Banks
Thrift institutions
133.2
173.0
122.2
166.6
124.6
179.0
154.5
211.8
164.4
222.7
168.3
227.9
172.2
233.7
174.5
237.1
14
15
Small denomination time deposits 9
Commercial Banks
Thrift institutions
350.9
432.9
386.6
498.6
383.9
500.3
364.7
488.7
362.6
485.4
360.0
485.5
357.5
486.0
357.1
486.5
16
17
Money market mutual f u n d s
General purpose and broker/dealer
Institution-only
138.2
43.2
167.5
62.7
176.5
65.1
207.6
84.1
210.7
84.7
211.6
84.9
211.8
83.1
210.3
81.8
18
19
Large denomination time deposits 1 0
Commercial B a n k s "
Thrift institutions
230.0
96.2
269.6
147.3
284.1
152.1
291.8
155.3
296.0
152.2
299.0
151.1
305.9
148.7
310.6
149.0
20
21
Debt components
Federal debt
Nonfederal debt
1,172.8
4,033.5
1.367.6
4,578.4
1,587.0
5,187.9
1,806.9
5,836.2
1,825.9
5,928.7
1,831.6
5,959.6
1,841.6
6,007.1
n.a.
n.a.
Not seasonally adjusted
2?
23
24
25
26
Ml
M2
M3
L
Debt
27
28
29
30
Ml components
Currency 2
Travelers checks-'
Demand deposits 4
Other checkable deposits 5
31
32
Nontransactions components
M2 6
M3 only 7
33
34
Money market deposit accounts
Commercial banks
Thrift institutions
Savings deposits 8
Commercial Banks
Thrift institutions
36
538.3
2.191.6
2,702.4
3,163.1
5,200.7
570.3
2,378.3
2,997.2
3,539.7
5,940.2
641.0
2,580.5
3,218.8
3,850.7
6,768.3
746.5
2,813.7
3,503.9
4,154.1
7,635.8
723.3
2,809.1
3,508.7
4,173.1
7,738.2
729.0
2,818.0
3,520.7
4,174.1
7,768.1
757.6
2,847.1
3,548.9
4,194.8
7,821.1
745.0
2,828.9
3,545.6
n.a.
n.a.
150.6
4.6
251.0
132.2
160.8
4.9
257.2
147.4
173.1
5.5
282.0
180.4
186.2
6.0
319.5
235.0
184.8
6.2
291.9
240.3
186.0
6.4
291.5
245.1
188.0
6.4
305.8
257.5
190.1
6.5
298.9
249.5
1,653.3
510.8
1,808.0
618.9
1,939.5
638.3
2,067.1
690.2
2,085.8
699.6
2,089.0
702.7
2.089.5
701.8
2,083.8
716.8
230.4
148.5
267.4
150.0
332.5
180.7
379.0
192.4
378.5
192.3
378.2
192.3
375.4
190.1
368.8
188.3
132.2
172.4
121.4
166.2
123.9
178.8
153.8
211.8
162.8
221.8
167.2
227.8
172.1
233.9
174.9
237.7
37
38
Small denomination time deposits 9
Commercial Banks
Thrift institutions
351.1
433.5
386.7
499.6
383.8
501.5
364.4
489.8
362.1
487.9
359.6
485.8
355.6
484.4
355.6
483.2
39
40
Money market mutual f u n d s
General purpose and broker/dealer
Institution-only
138.2
43.2
167.5
62.7
176.5
65.1
207.6
84.1
210.7
84.7
211.6
84.9
211.8
83.1
210.3
81.8
41
42
Large denomination time deposits 1 0
Commercial B a n k s "
Thrift institutions
231.6
96.3
271.2
147.3
285.6
151.9
293.2
154.9
298.1
153.1
301.3
151.2
303.2
148.0
309.2
149.0
43
44
Debt components
Federal debt
Nonfederal debt
1,170.2
4,030.5
1,364.7
4,575.5
1,583.7
5,184.6
1,805.4
5,830.4
1,827.9
5,910.4
1,839.1
5,928.9
1,846.7
5,974.4
For notes see following page.
n.a.
n.a.
A44
DomesticNonfinancialStatistics • August 1987
N O T E S T O T A B L E 1.21
1. Composition of the money stock measures and debt is as follows:
M l : (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, M M D A s , savings and smalldenomination time deposits (time deposits—including retail RPs—in amounts of
less than $100,000), and balances in both taxable and tax-exempt general purpose
and broker-dealer money market mutual funds. Excludes individual retirement
accounts (IRA) and Keogh balances at depository institutions and money market
funds. Also excludes all balances held by U.S. commercial banks, money market
funds (general purpose and broker-dealer), foreign governments and commercial
banks, and the U.S. government. Also subtracted is a consolidation adjustment
that represents the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposits.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted is
a consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are based on monthly averages.
2. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of
commercial banks. Excludes the estimated amount of vault cash held by thrift
institutions to service their O C D 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 O C D liabilities.
5. Consists of N O W 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 O C D and seasonally adjusted demand
deposits. Included are all ceiling free " S u p e r N O W s , " authorized by the
Depository Institutions Deregulation committee to be offered beginning Jan. 5,
1983.
6. Sum of overnight RPs and overnight Eurodollars, money market fund
balances (general purpose and broker-dealer), M M D A s , 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 f r o m the Banking Section, Division of
Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Monetary
1.22
and Credit Aggregates
A15
B A N K 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.
1987
1986
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
Seasonally adjusted
DEBITS TO
2
Demand deposits
All insured banks
Major N e w York City banks
3
Other banks
4 A T S - N O W accounts 3
5 Savings deposits 4
1
1
128,440.8
57,392.7
71,048.1
1,588.7
633.1
154,556.0
70,445.1
84,110.9
1,920.8
539.0
189,534.1
91,212.9
98,321.4
2,351.1
410.3
187,594.4
96,829.5
90,764.9
2,501.0
424.9
206,689.6
95,831.3
110,858.4
2,960.8
533.7
210,574.2
99,357.1
111,217.1
2,255.7
459.2
211,169.4
98,712.3
112,457.1
2,306.0
477.7
217,019.7
104,224.5
112,795.2
2,344.6
468.6
224,603.0
107,159.2
117,443.7
2,384.7
528.0
434.4
1,843.0
268.6
15.8
5.0
496.5
2,168.9
301.8
16.7
4.5
561.8
2,460.6
327.4
16.8
3.1
538.2
2,513.2
292.8
16.1
2.9
560.7
2,251.6
340.0
18.3
3.5
580.3
2,426.4
345.5
13.4
2.9
594.7
2,461.0
357.0
13.5
2.9
613.8
2,707.8
358.0
13.6
2.8
627.0
2,711.5
368.5
13.6
3.1
216,638.7
102,274.2
114,364.5
2,679.2
1,913.3
499.0
191,572.9
89,866.7
101,706.2
2,173.2
1,600.7
434.6
222,532.0
106,161.2
116,370.8
2,422.7
1,754.4
476.2
229,095.0
108,597.8
120,497.3
2,735.8
2,071.1
570.8
641.0
2,742.6
377.3
14.1
4.7
2.9
635.1
2,755.6
375.0
15.2
5.6
3.4
DEPOSIT TURNOVER
6
7
8
9
10
Demand deposits 2
All insured banks
Major New York City banks
Other banks
A T S - N O W accounts 3
Savings deposits 4
11
12
13
14
15
16
Demand deposits 2
All insured banks
Major N e w York City banks
Other banks
A T S - N O W accounts 3
MMDA5
Savings deposits 4
17
18
19
70
21
22
Demand deposits 2
All insured banks
Major N e w York City banks
Other banks
A T S - N O W accounts 3
MMDA5
Savings deposits 4
Not seasonally adjusted
DEBITS TO
128,059.1
57,282.4
70,776.9
1,579.5
848.8
632.9
154,108.4
70,400.9
83,707.8
1,903.4
1,179.0
538.7
189,443.3
91,294.4
98,149.0
2,338.4
1,599.3
404.3
167,465.5
85,849.7
81,615.8
2,255.1
1,434.0
382.7
226.263.1
106,935.2
119,327.9
2,841.5
2,058.2
503.6
433.5
1,838.6
267.9
15.7
3.5
5.0
497.4
2,191.1
301.6
16.6
3.8
4.5
564.0
2,494.3
327.9
16.8
4.5
3.1
476.4
2,225.4
260.8
14.6
3.8
2.6
600.3'
2,483.2'
357.4
17.4
5.5'
3.3
DEPOSIT TURNOVER
1. Annual averages of monthly figures.
2. Represents accounts of individuals, partnerships, and corporations and of
states and political subdivisions.
3. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts authorized for automatic transfer to demand deposits (ATS). ATS data are
available beginning December 1978.
4. Excludes ATS and N O W accounts, M M D A and special club accounts, such
as Christmas and vacation clubs.
5. Money market deposit accounts.
579.9'
2,345.5 r
346.6
15.7
5.1'
3.1
550.0
2,273.2'
329.4
12.9
4.3'
2.7
NOTE. Historical data for demand deposits are available back to 1970 estimated
in part from the debits series for 233 SMSAs that were available through June
1977. Historical data for A T S - N O W and savings deposits are available back to
July 1977. Back data are available on request f r o m 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.
A44
1.23
DomesticNonfinancialStatistics • August 1987
LOANS A N D SECURITIES
All C o m m e r c i a l B a n k s 1
Billions of dollars; averages of Wednesday figures
1986
June
Aug.
July
Sept.
1987
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
Seasonally adjusted
1 Total loans and securities 2
2 U.S. government securities
J Other securities
4 Total loans and leases 2
5
Commercial and industrial
6
Bankers acceptances h e l d 3 . .
/
Other commercial and
industrial
8
U.S. addressees 4
9
Non-U.S. a d d r e s s e e s 4 . . . .
10
Real estate
11
Individual
12
Security
13
Nonbank financial
institutions
14
Agricultural
15
State and political
subdivisions
16
Foreign banks
1/
Foreign official institutions . . .
18
Lease financing r e c e i v a b l e s . . .
19
All other loans
1,978.3
1,998.2
2,022.6
2,044.6
2,052.4
2,063.5
2,089.8
2,118.3
2,119.7
2,126.2
2,147.3
2,160.6
275.7
187.0
1,515.6
513.0
6.3
284.7
189.7
1,523.7
512.6
6.1
291.5
196.0
1,535.1
515.2
6.5
294.9
204.2
1,545.4
517.3
6.6
299.6
199.8
1,553.0
520.0
6.7
304.1
197.9
1,561.5
6.4
309.9
196.9
1,583.0
541.4
6.4
316.3
190.2
1,611.8
554.1
6.8'
315.2
193.8
1,610.7
553.8
6.8
314.3
195.5
1,616.4
551.7
6.2'
315.8
197.2
1.634.3
553.9
6.5
320.1
197.6
1,642.9
555.8
6.8
506.6
497.3
9.4
453.6
305.1
41.3
506.5
497.7
8.9
458.3
306.3
43.7
508.7
499.8
8.9
464.8
308.1
43.1
510.7
501.7
9.0
468.9
309.9
42.8
513.3
504.6
8.8
474.2
311.2
39.1
519.2
510.7
8.5
479.6
312.6
40.1
535.0'
525.7
9.4
489.0
314.2
38.6
547.2'"
537.8
9.5
499.2
314.9
37.7
546.9'
537.9
9.1
504.0
315.2
38.5
545.5
536.8
8.7
511.0
315.7
38.3
547.4'
538.9'
8.5
517.9
316.6
43.6
549.0
540.8
8.2
526.3
316.7
42.0
34.6
33.7
34.5
33.2'
34.5
33.0
34.9
32.7
35.5
32.4
34.9
32.1
35.2
31.7
35.7
31.2'
34.7
30.7'
35.0
30.1'-
35.4
29.5'
35.4
29.3
60.1
10.3
6.0
20.4
37.4
59.9
10.3
6.1
20.5
38. y
60.1
10.1
6.1
20.7
39.6'
60.0
10.1
6.0
21.1
41.8'
59.3
10.0
6.0
21.8
43.4'
58.7
10.0
5.9
22.0
40.0'
57.9
10.4
5.8
22.2
36.6
57.8
10.6
5.9
22.1
42.6'
57.2
10.3
6.1
22.2
38.K
56.9
9.7
6.7
22.3
38.8'
56.0'9.9
6.7
22.6
42.2'"
55.2
9.9
5.8
22.9
43.6
Not seasonally adjusted
20 Total loans and securities 2
1,978.2
1,993.7
2,015.1
2,042.3
2,044.0
2,064.2
2,105.2
2,123.7
2,121.6
2,127.8
2,148.4
2,157.9
21 U.S. government securities
22 Other securities
23 Total loans and leases 2
24
Commercial and i n d u s t r i a l . . . .
25
Bankers acceptances h e l d 3 . .
26
Other commercial and
industrial
2/
U.S. addressees 4
28
Non-U.S. a d d r e s s e e s 4 . . . .
29
Real estate
30
Individual
31
Security
32
Nonbank financial
institutions
33
Agricultural
34
State and political
subdivisions
35
Foreign banks
36
Foreign official institutions . . .
37
Lease financing r e c e i v a b l e s . . .
38
All other loans
276.2
185.7
1,516.3
514.2
6.4
285.6
187.5
1,520.6
512.1
6.2
290.5
196.2
1,528.4
512.8
6.3
293.8
205.0
1,543.5
516.1
6.7
296.1
200.1
1,547.8
517.8
6.6
303.2
198.3
1,562.6
525.2
6.6
308.3
198.1
1,598.7
544.3
6.7
314.6
193.7
1,615.4
552.4
6.7'"
318.9
194.1
1,608.6
551.7
6.7 r
317.2
194.4
1,616.2
554.5
6.2
317.7
195.2
1.635.4
556.5
6.4
319.8
196.8
1,641.4
557.5
6.7
507.8
498.4
9.4
453.3
303.8
41.9
506.0
496.8
9.2
458.4
305.2
42.7
506.5
497.3
9.1
464.9
307.9
40.7
509.4
500.2
9.2
469.9
310.8
41.3
511.2
502.1
9.1
475.1
312.3
37.8
518.5
509.5
9.1
480.7
313.7
40.4
537.6
528.8
8.8
489.9
317.8
40.9
545.8'
537.1
8.7'
499.3
317.9
39.4
545.0'
536.3
8.7'
503.1
314.7
37.5
548.3
539.9
8.4
509.8
313.3
38.6
550.0'
541.6
8.4
516.7
314.4
45.1
550.8
542.4
8.4
525.4
314.8
42.1
34.7
34.1
34.5
34.0
34.8
33.9
35.6
33.7
35.6
33.1'
35.4
32.2
36.4
31.4
35.7
30.5'
33.8
29.8'
33.8
29.2'
34.9'
28.8'
34.9
29.1
60.1
10.1
6.0
20.5
37.7
59.9
10.3
6.1
20.5
36.8
60.1
9.9
6.1
20.6
36.8'
60.0
10.3
6.0
21.0
39.0
59.3
10.0
6.0
21.5
39.1
58.7
10.1
5.9
21.8
38.6
57.9
10.9
5.8
22.2
41.3
57.8
10.7
5.9
22.4
43.3'
57.2
10.5
6.1
22.4
41.6'
56.9
9.7
6.7
22 5
41.1'
56.0'"
9.5
6.7
22.7
44.2'
55.2
9.6
5.8
22.9
44.1
1. These data also appear in the Board's 0.1 (407) release.
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.
Commercial
1.24
Banking
Institutions
A17
MAJOR N O N D E P O S I T F U N D S OF COMMERCIAL BANKS'
Monthly averages, billions of dollars
1987
1986
Source
June
Total nondeposit f u n d s
Seasonally adjusted 2
Not seasonally adjusted
Federal funds, RPs, and other
borrowings from nonbanks 3
Seasonally adjusted
3
Not seasonally adjusted
4
5 Net balances due to foreign-related
institutions, not seasonally
adjusted
1
2
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb/
Mar.
Apr.
May
134.3
132.0
136.1
132.9
137.9
137.8
142.6
141.9
140.5
139.5
144.2
145.7
144.9
145.0
153.9'
153.4 r
157.1
159.8
161. 7'
164.0'
158.0'
158.1'
165.9
166.6
158.0
155.7
165.5
162.4
167.4
167.3
166.9
166.2
167.8
166.9
166.0
167.5
164.0
164.1
169.0'
168.5'
169.3
171.9
167.7'
170.0'
167.7'
167.8'
165,4
166.2
-23.7
-29.5
-29.5
-24.3
-27.3
-21.8
-19.1
-15.1
-12.2
-6.0
-9.7
.5
-30.5
72.2
41.7
-33.8
73.9
40.1
-31.2
75.2
44.0
-29.2
74.0
44.8
-31.9
73.5
41.6
-28.7
70.8
42.1
-30.7
73.4
42.7
-25.7
70.8
45.2
-24.0
68.6
44.6
-20.8
65.7
44.8
-22.4
70.0
47.6
-15.1
67.9
52.8
6.8
62.8
69.6
4.3
64.2
68.6
1.7
66.3
67.9
4.9
67.9
72.7
4.6
68.3
72.9
6.9
68.7
75.6
11.6
70.8
82.5
10.6
74.6
85.1
11.8
72.9
84.8
14.8'
71.1
85.9'
12.7
72.6
85.3
15.5
75.4
90.9
90.1
87.9
95.2
92.0
95.9
95.8
95.9
95.2
97.0
96.1
96.9
98.5
97.0
97.1
99.2'
98.7'
95.5
98.1
92.5'
94.8'
95.3'
95.4'
95.1
95.9
17.7
16.1
15.4
16.8
14.5
11.1
16.5
18.2
17.1
15.3
23.2
15.3
21.2
19.2
21.3
27.5
23.2
28.6
17.7
17.1
20.7
21.6
26.1
30.8
341.8
339.2
341.1
338.3
344.3
344.0
344.2
345.5
342.7
343.8
343.3
344.1
345.6
347.1
350.1
351.3
351.1
353.2
354.1
356.4
359.8
357.1
366.2
364.7
MEMO
6 Domestically chartered banks' net
positions with own foreign
branches, not seasonally
adjusted 4
Gross due f r o m balances
7
Gross due to balances
8
9 Foreign-related institutions' net
positions with directly related
institutions, not seasonally
adjusted 5
Gross due from balances
10
Gross due to balances
11
Security RP borrowings
Seasonally adjusted®
12
Not seasonally adjusted
13
U.S. Treasury demand balances 7
Seasonally adjusted
14
Not seasonally adjusted
15
Time deposits, $100,000 or more 8
Seasonally adjusted
16
Not seasonally adjusted
17
1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus agencies and branches of foreign banks, N e w
York investment companies majority owned by foreign banks, and Edge Act
corporations owned by domestically chartered and foreign banks.
2. Includes seasonally adjusted federal f u n d s , 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 n o n m e m b e r 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.
A44
1.25
DomesticNonfinancialStatistics • August 1987
ASSETS A N D LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Last-Wednesday-of-Month Series'
Billions of dollars
1986
1987
Account
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
2,144.5
449.0
269.1
179.9
28.6
1,666.9
148.7
1,518.2
510.6
459.8
305.8
242.1
2,164.8
460.0
272.9
187.1
29.3
1.675.6
145.5
1,530.1
513.8
466.5
308.8
241.0
2,179.7
469.4
276.6
192.8
27.9
1,682.4
139.8
1,542.5
515.9
470.5
311.2
244.9
2,183.2
471.9
282.8
189.1
26.0
1,685.3
141.2
1,544.1
517.2
476.2
312.8
237.8
2,227.3
475.4
287.3
188.0
28.1
1,723.8
154.7
1,569.1
524.9
481.8
314.1
248.2
2,314.3
479.6
292.6
187.0
27.8
1,807.0
168.9
1,638.1
568.2
497.5
320.4
252.0
2,284.8
482.2
296.1
186.1
26.4
1,776.3
160.1
1,616.2
551.1
499.9
317.0
248.3
2,279.4
484.7
298.8
185.9
29.0
1,765.6
156.7
1,608.9
551.5
503.5
314.7
239.2
2,279.2
486.2
299.5
186.7
25.2
1,767.8
154.3
1,613.5
555.3
510.7
313.1
234.4
209.0
28.6
23.3
72.2
208.3
28.3
23.7
73.5
199.3
28.2
22.9
66.2
203.5
31.6
23.5
66.2
227.0
32.2
86.5
273.7
41.2
25.7
111.3
214.4
33.4
23.7
74.5
206.3
28.4
23.5
71.4
203.8
31.1
22.9
68.1
209.7
29.8
24.0
74.5
230.8
37.9
25.1
81.3
34.3
50.7
34.0
48.7
32.8
49.2
33.1
49.0
38.3
47.9
43.3
52.3
34.0
48.8
33.0
50.1
32.7
49.0
33.9
47.5
37.2
49.3
Apr.
May
ALL COMMERCIAL BANKING
INSTITUTIONS 2
1 L o a n s and securities
i
3
4
5
6
7
8
9
10
11
12
I n v e s t m e n t securities
U . S . g o v e r n m e n t securities
Other
Trading account assets
Total loans
I n t e r b a n k loans
L o a n s excluding i n t e r b a n k
C o m m e r c i a l and industrial
Real estate
Individual
All o t h e r
13 Total cash a s s e t s
14
R e s e r v e s with Federal R e s e r v e B a n k s
15
C a s h in vault
C a s h items in p r o c e s s of collection . . .
16
17
D e m a n d balances at U . S . d e p o s i t o r y
18
institutions
O t h e r cash assets
19 O t h e r assets
2 0 Total assets/total liabilities and capital . . .
21
22
23
24
25
26
27
Deposits
T r a n s a c t i o n deposits
Savings deposits
Time deposits
Borrowings
O t h e r liabilities
Residual (assets less liabilities)
11 i
2,306.2'492.5
305.1'
187.5''
23.3
1,790.3
151.8
1,638.5
555.5
519.0'
315.2
248.9
2,318.9
495.4
307.0
188.4
21.4
1,802.1
160.4
1,641.7
558.2
527.4
314.8
241.3
195.3
194.8
201.4
198.6
202.2
224.8
201.3
201.1
202.1
204.0'
208.5
2,548.9
2,567.8
2,580.4
2,585.3
2,656.5
2,812.8
2,700.5
2,686.8
2,685.2
2,719.9 r
2,758.2
1,822.4
541.6
492.5
788.3
381.7
168.7
176.0
1,837.6
545.7
499.2
792.6
379.8
173.8
176.7
1,834.5
538.9
505.5
790.1
391.6
176.3
178.1
1,847.1
548.8
516.0
782.2
383.3
175.7
179.2
1,900.2
596.3
522.9
781.1
397.4
180.0
178.9
2,018.0
691.1
535.0
791.9
414.5
199.6
180.6
1,898.3
577.8
532.3
788.2
432.7
188.0
181.5
1,895.5
569.2
535.9
790.3
425.6
184.6
181.2
1,899.6
568.8
539.7
791.2
414.9
188.7
181.9
1,919.5'
590.7
535.1
793.6
422. V
195.2''
182.5''
1,939.1
596.9
538.6
803.6
435.6
200.2
183.3
288.4
290.6
293.2
299.5
304.8
308.4
314.5
320.1
316.7
318.9
320.6
189.2
198.7
204.1
198.4
198.8
198.9
194.1
193.7
194.7
196.9
196.1
2,020.1
433.8
262.5
171.3
28.6
1,557.7
124.0
1.433.7
448.9
453.8
305.4
225.6
2,034.6
443.0
265.0
178.0
29.3
1,562.3
119.7
1.442.7
449.4
460.4
308.5
224.4
2,044.8
450.5
267.9
182.5
27.9
1.566.4
115.6
1,450.8
448.1
464.3
310.9
227.5
2.052.1
452.9
273.6
179.3
26.0
1,573.2
118.8
1,454.3
449.0
470.0
312.5
222.7
2,094.7
457.1
279.0
178.2
28.1
1,609.5
133.0
1,476.4
455.7
475.1
313.8
231.8
2,154.4
459.3
283.0
176.3
27.8
1,667.3
137.9
1,529.5
488.2
490.3
320.1
230.9
2,136.7
461.5
286.8
174.8
26.4
1,648.8
134.3
1,514.5
475.5
493.2
316.7
229.2
2,130.3
463.3
289.2
174.1
29.0
1.638.0
130.5
1,507.5
474.1
497.0
314.4
221.9
2,121.7
463.6
289.4
174.2
25.2
1,632.9
124.1
1,508.8
474.6
504.1
312.7
217.4
190.1
27.2
23.3
71.7
191.2
26.6
23.7
73.1
182.5
26.9
22.9
65.8
185.6
29.7
23.5
65.6
210.0
29.8
22.2
86.1
253.5
39.7
25.7
110.9
196.6
31.2
23.6
74.0
188.9
27.1
23.5
71.0
186.5
29.7
22.8
67.7
192.5
27.2
24.0
74.0
213.2
35.9
25.0
80.9
32.5
35.4
32.3
35.5
30.9
36.0
31.3
35.5
36.3
35.6
40.8
36.4
32.2
35.6
31.1
36.4
31.1
35.2
31.9
35.4
35.1
36.2
MEMO
2 8 U . S . g o v e r n m e n t securities (including
trading account)
2 9 O t h e r securities (including trading
account)
DOMESTICALLY CHARTERED
COMMERCIAL B A N K S 3
3 0 L o a n s and securities
I n v e s t m e n t securities
31
32
U . S . g o v e r n m e n t securities
33
Other
34
Trading a c c o u n t a s s e t s
35
Total loans
36
I n t e r b a n k loans
37
L o a n s excluding i n t e r b a n k
C o m m e r c i a l and industrial
38
Real estate
39
Individual
40
All o t h e r
41
4 2 Total cash assets
43
R e s e r v e s with Federal R e s e r v e B a n k s
C a s h in vault
44
45
C a s h items in p r o c e s s of collection . . .
D e m a n d b a l a n c e s at U . S . d e p o s i t o r y
46
47
institutions
O t h e r cash assets
4 8 O t h e r assets
4 9 Total assets/total liabilities and capital . . .
50
51
52
53
54
55
56
Deposits
T r a n s a c t i o n deposits
Savings d e p o s i t s
Time deposits
Borrowings
O t h e r liabilities
Residual (assets less liabilities)
(
2,156.2
471.5
296.7
174.8
21.4
1,663.3
128.6
1,534.7
475.3
520.3
314.5
224.7
140.4
139.3
143.5
141.0
141.6
165.0
141.5
144.0
143.4
2,350.6
2,365.0
2,370.8
2,378.7
2,446.3
2,572.8
2,474.8
2,463.2
2,451.5
2,483.8'
2,512.4
1,771.6
533.5
490.8
747.3
302.2
103.9
172.9
1,784.2
537.6
497.4
749.3
296.8
110.5
173.5
1,779.3
530.6
503.7
745.0
306.9
109.6
174.9
1.792.8
540.9
514.1
737.7
301.3
108.6
176.0
1,844.8
588.2
520.8
735.8
314.1
111.7
175.8
1,957.0
682.2
533.0
741.8
322.9
115.5
177.5
1,840.8
569.4
530.3
741.1
341.7
114.0
178.3
1,838.2
561.3
533.9
743.0
336.1
110.8
178.1
1,840.7
560.5
537.7
742.5
319.1
113.0
178.8
1,857.1
582.2
533.1'
741.8 R
328.2'
119.1'
179.4'
1,876.5
588.4
536.6
751.5
337.1
118.7
180.2
1. D a t a have been revised b e c a u s e of b e n c h m a r k i n g to new Call R e p o r t s and
n e w seasonal f a c t o r s beginning July 1985. Back d a t a are available f r o m the
Banking Section, Board of G o v e r n o r s of the Federal R e s e r v e S y s t e m , Washingt o n , D . C . , 20551.
Figures are partly e s t i m a t e d . T h e y include all bank-premises subsidiaries and
o t h e r significant m a j o r i t y - o w n e d d o m e s t i c subsidiaries. Loan and securities data
for domestically chartered c o m m e r c i a l b a n k s are estimates for the last W e d n e s day of the m o n t h based on a sample of weekly reporting b a n k s and quarter-end
2,146.9'
470.0'
295.2
174.8''
23.3
1,653.6''
124.2
1,529.3
473.5
512.0 R
314.9
229.0
144.4
143.0
condition report d a t a . Data for o t h e r banking institutions are e s t i m a t e s m a d e f o r
the last W e d n e s d a y of the m o n t h based on a weekly reporting sample of foreignrelated institutions and quarter-end condition reports.
2. C o m m e r c i a l banking institutions include insured domestically c h a r t e r e d
commercial b a n k s , b r a n c h e s and agencies of foreign b a n k s . E d g e Act and
A g r e e m e n t c o r p o r a t i o n s , and N e w Y o r k State foreign i n v e s t m e n t c o r p o r a t i o n s .
3. Insured domestically c h a r t e r e d commercial b a n k s include all m e m b e r b a n k s
and insured n o n m e m b e r b a n k s .
Weekly Reporting
1.26
Commercial
Banks
A19
A L L L A R G E W E E K L Y R E P O R T I N G C O M M E R C I A L B A N K S with D o m e s t i c A s s e t s of $1.4 Billion or More on
D e c e m b e r 31, 1982, A s s e t s and Liabilities
Millions of dollars, Wednesday figures
1987
Account
r
Apr. 8'
Apr. 15
Apr. 22
Apr. 29
May 6
114,764
103,001
119,102
109,998
99,258
99.081
Apr. l
1 Cash and balances due from depository institutions
1,011,944 1,006,954 1,020,867' 1,022,162' 1,016,966' 1,019,275
2 Total loans, leases and securities, net
May 13
May 20
May 27
100,312
94,593
114,534
1,007,593 1,021,292 1,014,501
3 U.S. Treasury and government agency
4
Trading account
Investment account, by maturity
6
One year or less
Over one through five years
7
8
Over five years
9 Other securities
10
Trading account
Investment account
11
States and political subdivisions, by maturity
1?
13
One year or less
Over one year
14
15
Other bonds, corporate stocks, and securities
16 Other trading account assets
112,715
16,596
96,118
15,993
40,597
39,528
67,349
3,773
63,575
51,369
6,528
44,841
12,207
4,279
112,481
16,368
96,113
16,016
40,048
40,048
67,107
3,511
63,596
51,310
6,575
44,735
12,286
4,909
112,292 r
16,578
95,714'
16,017
40,630
39,067'
67,949'
4,182
63,768'
51.380
6,544
44,835
12,388'
4.792'
110,833'
14,346
96,486'
15,396'
41,532'
39,559'
68,435'
4,576
63,859'
51,421
6,580
44,841
12,437'
4,517'
110,969'
13,847
97,123'
15,293'
42,055'
39,774'
69,313'
4,946
64,367'
51,528
6,629
44,899
12,840'
4,535'
111,297
13,840
97.458
15,261
43,314
38,882
69,107
4,617
64,490
51,333
6,604
44,729
13,157
4,438
110,477
12,705
97,772
15.062
43,348
39,361
68,619
4,164
64,456
51,348
6,566
44,782
13,107
4,819
112,136
14,496
97,640
15,095
44,825
37,720
68,245
3,801
64,444
51,338
6,515
44,823
13,106
4,469
111,722
13,612
98,110
14,817
44,760
38,533
68,218
3,719
64,499
51,394
6,501
44,893
13,105
4,045
17 Federal funds sold 1
18
To commercial banks
19
To nonbank brokers and dealers in securities
70
To others
71 Other loans and leases, gross 2
V
Other loans, gross 2
73
Commercial and industrial 2
74
Bankers acceptances and commercial paper
All other
?">
76
U.S. addressees
N o n - U . S . addressees
27
62,950
38.441
18,402
6,107
786,991
768,644
279,251
2,369
276,882
273,569
3,313
58,332
35,870
15,202
7,261
786,533
768,146
278,291
2,350
275,941
272,606
3,335
63,856
41,298
16,118
6,439
794,406'
775,969'
279,974'
2,229'
277,744'
274,304'
3,440
65,983
39,636
18,885
7,462
794,712'
776,282'
279,510'
2,480'
277,030'
273,672'
3,358
60,379
35,833
16,539
8,007
793,930'
775,326'
277,296'
2,247'
275,049'
271,734'
3,315
64,038
37,820
18.006
8,212
792,674
774.084
278,649
2,475
276,174
272,832
3,341
56,279
32.273
16.655
7,351
789,760
771,165
277.184
2,415
274,769
271,476
3,293
64,090
35,894
18,588
9.607
794,833
776,234
280,527
2,514
278,013
274,669
3,344
61,737
35.880
17,494
8,364
792,846
774,168
278,868
2,214
276,654
273,358
3,296
219,727
140,568
51,988
21,171
5,200
25,616
14,900
5,322
34,077
3,166
19,645
18,346
4,578
17,760
764,652
130,848
220,005
140,393
53,592
22,600
5,001
25,990
15,762
5,325
33,798
3,027
17,954
18,387
4,600
17,808
764,124
129,474
220,970'
140,986'
53,060
21,782
4,632
26,645
18,463
5,323
33,742'
3,068
20,383'
18,437
4,607'
17,822
771,978'
128,054'
220,850'
141,486'
52,571'
22,504
4,896
25,171'
20,353
5,326
33,679'
3,000
19,508'
18,430
4,602'
17,716
772,394'
126,362'
221,383'
141,928'
53,490'
23,356'
4,561
25,573'
20,435
5,318
33,533'
3,045
18,897'
18,604
4,495'
17,667
771,769'
125,988'
221.775
141,795
54,593
23,062
5,109
26,422
16,577
5,367
33,296
3,111
18,920
18,590
4,455
17,824
770,395
125,055
223,466
141,746
54,321
23.202
4,556
26,564
15,234
5,389
33,241
2,984
17,601
18.594
4,470
17,891
767,398
123,976
225,557
141,349
54,124
22,805
4,920
26,398
15,299
5,478
33,269
2,990
17,640
18,599
4,480
18,001
772,352
120,826
225,630
141,369
53,684
23,614
4,949
25,121
14,465
5,475
33,215
2,905
18,555
18,678
4,473
19,594
768,779
126,390
1,231,881 1,236,711
1,255,426
78
79
30
31
3?
33
34
35
36
37
38
39
40
41
4?
43
Real estate loans 2
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions
All other
Lease financing receivables
LESS: Unearned income
Loan and lease reserve 2
Other loans and leases, net 2
All other assets
1,257,556 1,239,429 1,268,024' 1,258,522' 1,242,212' 1,243,412
44 Total assets
45
46
47
48
49
50
51
57
53
54
55
56
57
58
59
60
61
67
63
64
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 banks
Liabilities for borrowed money
Borrowings f r o m Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money 3
Other liabilities and subordinated note and debentures
250,145
194,452
5,776
1,516
30,113
6,643
1,030
10,615
61,602
521,088
482,865
26,498
745
10,029
951
251,568
0
4,977
246,592
84,443
223,884
174,173
4,594
2.877
23,630
6,640
928
11,042
63,235
521,011
483.188
26,352
738
9,801
932
261,387
1,180
8,904
251,303
81,150
262,558'
195,730'
6.138
11,518
28,222
6,546
855
13,549
66,729
518,641
481,172
26,170
699
9,672
928
251,681'
0
7,906
243,775'
79,924'
233,431
179,974
5,755
3,963
25,181
6.421
829
11,309
64,623
516,313
478,418
26,439
833
9,705
918
267,021'
4,838
20,504'
241,679'
88,656'
228,895
176,883
5,585
4,378
23,857
6,338
1,076
10,777
60,280
516,208
478.130
26,698
791
9,698
890
253,928'
156
20,764
233,008'
94,408'
226,206
174.649
5,913
2,335
25,570
6.846
1,148
9.743
60,165
517,195
478,411
27,313
876
9,722
873
264,402
1,075
20,980
242,347
86,538
1,168,847 1,150,668 1,179,533' 1,170,044' 1,153,720' 1,154,506
65 Total liabilities
66 Residual (total assets minus total liabilities) 4
218,037
172,153
4,826
1,254
23.365
5,892
959
9,586
58,996
518,242
479,174
27,514
880
9,791
883
257,996
0
20,633
237,364
89,311
227,904
176,985
5,226
4,083
24,988
6,324
922
9,377
59,331
520,744
480.996
28,099
896
9,860
892
254,111
844
20,865
232,402
85.521
231,830
179,549
5,478
1,288
27,652
6,774
1,128
9,960
59,148
523,201
483,352
28,107
897
9,934
911
261,270
0
20,549
240,721
90,945
1,142,582 1,147,611 1,166,394
88,709
88,761
88,491
88,478
88,492
88,906
89,299
89,100
89,032
974,671
790,329
157,684
1,940
1,460
480
236,368
970,893
786,396
158,678
1,903
1,457
446
235,664
980,214'
795,181'
157,278
1,862
1,402
460
234,545
982,340'
798,555'
158,003
1,754
1,283
470
231,712
979,939'
795,121'
159,599'
1,685
1,215
470
230,211
980,672
795,830
159,952
1,722
1,252
470
230,838
974,478
790,563
160,553
1,698
1,216
483
230,886
985,074
800,223
162,880
1,703
1,190
513
230,901
979,075
795,089
164,502
1,677
1,165
513
231,157
MEMO
67
68
69
70
71
7?
73
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—total 6
Commercial and industrial
Other
Nontransaction savings deposits (including MMDAs)
5
1. Includes securities purchased under agreements to resell.
2. Levels of major loan items were affected by the Sept. 26, 1984, transaction
between Continental Illinois National Bank and the Federal Deposit Insurance
Corporation. For details see the H.4.2 statistical release dated Oct. 5, 1984.
3. Includes federal funds purchased and securities sold under agreements to
repurchase; for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31, 1977, see table 1.13.
4. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.
5. Exclusive o f l o a n s and federal funds transactions with domestic commercial
banks.
6. Loans sold are those sold outright to a b a n k ' s own foreign branches,
nonconsolidated nonbank affiliates of the bank, the b a n k ' s holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of the holding c o m p a n y .
A44
1.28
DomesticNonfinancialStatistics • August 1987
L A R G E W E E K L Y R E P O R T I N G C O M M E R C I A L B A N K S I N N E W Y O R K C I T Y A s s e t s and Liabilities
Millions of dollars, Wednesday figures except as noted
1987
Account
Apr. 1
1 Cash and balances due from depository institutions
2 Total loans, leases and securities, net1
Securities
3 U.S. Treasury and government agency 2
4
Trading account 2
5
Investment account, by maturity
6
One year or less
7
Over one through five years
8
Over five years
9 Other securities 2
10
Trading account 2
investment account
11
12
States and political subdivisions, bv maturity
13
One year or less
14
Over one year
15
Other bonds, corporate stocks and securities
16 Other trading account assets 2
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
Loans and leases
Federal funds sold 3
To commercial banks
To nonbank brokers and dealers in securities
To others
Other loans and leases, gross
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial paper
All other
U.S. addressees
N o n - U . S . addressees
Real estate loans
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions
All other
Lease financing receivables
LESS: Unearned income
Loan and lease reserve
Other loans and leases, net
All other assets 4
44 Total assets
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
Deposits
Demand deposits
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Transaction balances other than demand deposits
ATS, N O W , Super N O W . telephone transfers)
Nontransaction balances
Individuals, partnerships and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Foreign governments, official institutions and banks
Liabilities for borrowed money
Borrowings from Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money 5
Other liabilities and subordinated note and debentures
65 Total liabilities
66 Residual (total assets minus total liabilities) 6
Apr. 8
Apr. 15
Apr. 22
Apr. 29
May 6
May 13
May 20
May 27
34,104
28,339
32,137
27,134
24,078
23.225
22,904
21,202
28,872
220,495
220,858
223,880
229,297
226,815
229,013
2^1,084
227,461
223,290
0
0
13,793
1,594
4,173
8,025
0
0
16,472
13,868
1,350
12.517
2,605
0
0
0
14,002
1.613
4,221
8,168
0
0
16,498
13,869
1,386
12,483
2,629
0
0
0
13,929
1,650
4,407
7,872
0
0
16,555
13,933
1,368
12,564
2,622
0
0
0
14,041
1,536
4,981
7,524
0
0
16,482
13,915
1,380
12,536
2,567
0
0
0
14,218
1,535
5,135
7,547
0
0
16,527
13,955
1,395
12,560
2,572
0
0
0
14,100
1,532
5,178
7,390
0
0
16,471
13,920
1,404
12,516
2,550
0
0
0
14,038
1,483
5,170
7,385
0
0
16,453
13,966
1,392
12,574
2,487
0
0
0
14,382
1,791
5,687
6,904
0
0
16,428
13,963
1.388
12,575
2,465
0
0
0
14,081
1,388
5,680
7,013
0
0
16,496
14,010
1,386
12,625
2,486
0
22.934
9,572
9,451
3.911
174.035
169.559
62,882
578
62.304
61.880
423
40.831
20,508
21.679
11.865
2,786
7,028
7.390
2*^2
8.237
974
6,807
4,476
1,579
5.160
167,295
65,752
23,054
10,488
7,408
5,158
174,057
169.560
62.575
601
61,974
61,568
406
40,813
20,500
22,583
12,815
2,642
7,126
7,868
258
8.172
833
5,957
4.497
1,588
5,165
167,304
62.611
23,906
11,366
8,311
4,228
176,262
171,748
62,558
562
61,996
61,539
457
40,591
20,641
21,444
11,751
2,319
7,374
9,936
252
8.223
887
7,215
4,514
1,589
5,183
169,489
62,520
28,502
13.432
9,749
5,322
176,943
172.422
62.283
743
61,540
61,086
453
40,817
20,788
21,521
12,026
2,563
6,932
11,006
253
8,207
845
6,701
4,521
1,585
5,086
170,271
62,166
26,681
11,837
8,456
6,388
175,959
171,302
61,118
590
60,527
60,096
431
40,895
20,908
21,792
12,311
2,365
7,117
11,265
248
8,088
882
6,108
4,657
1,485
5,085
169,389
62,900
30.730
13,796
9.974
6.960
174,314
169,643
61,790
677
61,113
60,656
458
41,201
20,940
22,275
12,259
2,667
7,349
7,902
252
8,024
926
6,333
4,671
1,467
5,135
167,712
61,003
24,226
8,895
9,338
5.992
173,037
168,375
61,721
706
61,014
60,554
460
41,599
20,949
22,086
12,294
2,255
7,536
7,512
257
8,024
787
5,440
4,662
1,470
5,199
166,368
59,961
28,361
10.919
10,500
6,942
174,972
170,289
63,360
744
62,616
62,136
479
42,297
20,716
21,435
12,028
2,429
6,979
7,825
257
8,036
828
5,533
4,683
1,479
5,203
168,290
59,002
26,007
9,432
10,235
6,340
174,979
170,238
62,272
538
61,734
61,240
494
42,427
20,781
22,224
12,747
2,556
6,920
7,418
273
8,075
737
6,031
4,741
1,482
6,790
166,706
63,854
320,351
311,808
318,536
318,596
313,793
313,242
303,950
307,665
316,016
71,589
50,265
709
149
9,944
5,409
882
4,231
57.581
39.243
571
504
5.441
5,383
770
5.670
72,378
48,460
757
2.660
7,306
5,329
709
7,157
61,261
42,007
528
707
7,047
5.073
688
5,210
59,405
41,385
556
713
5,771
5,176
917
4,886
58,373
40,351
848
370
6,130
5,674
1.008
3,990
52.845
37,095
515
112
5,120
4,763
797
4,441
59.437
41.469
682
809
6,484
5,140
798
4,053
60,741
42,065
615
189
6,550
5,558
965
4,800
8,115
100,184
91,620
6,152
32
1,848
532
76,943
0
1,367
75,576
33,841
8,456
99,553
91,041
6,149
33
1.820
510
83,640
1,180
2,111
80.348
32,899
9.190
98,996
90.694
6.111
31
1,647
513
76,413
0
1,932
74,481
32,053
8,769
98,544
90,205
6,105
31
1,694
508
79,879
3.250
5,236
71,393
40,697
8,135
98,093
89,705
6,123
31
1,752
482
73,209
5,244
67,965
45,586
8,023
98,562
89,866
6,494
25
1,712
465
78,771
500
5,242
73,029
39,900
7,865
98,342
89,563
6,558
25
1,722
473
73,061
0
4,995
68,065
42,134
7,950
99,425
90,350
6,838
32
1,729
476
71,971
430
5,219
66,322
39,153
7,858
99,940
90,799
6,908
28
1,714
492
75,998
0
5,154
70,844
41,760
290,671
282,130
289,030
289,151
284,429
283,630
274,246
277,936
286,297
29,680
29,678
29,506
29,446
29,365
29,612
29.704
29,729
29,719
205,799
175,533
35,881
204,307
173,808
36,174
207.534
177,050
35,816
210,511
179,988
35,733
209,237
178,492
35,955
209,560
178,989
36,465
206,565
176,074
36,431
211,196
180,386
37,326
209,384
178,806
37,289
0
MEMO
67 Total loans and leases (gross) and investments adjusted 1 - 7
68 Total loans and leases (gross) adjusted 7
69 Time deposits in amounts of $100,000 or more
1. Excludes trading account securities.
2. Not available due to confidentiality.
3. Includes securities purchased under agreements to resell.
4. Includes trading account securities.
5. Includes federal funds purchased and securities sold under agreements to
repurchase.
6. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
7. Exclusive of loans and federal funds transactions with domestic commercial
banks.
NOTE. These data also appear in the Board's H.4.2 (504) release. For address,
see inside front cover.
Weekly Reporting
1.30
Commercial
LARGE W E E K L Y REPORTING U.S. B R A N C H E S A N D AGENCIES OF FOREIGN B A N K S '
Liabilities
Banks
A21
A s s e t s and
Millions of dollars, Wednesday figures
Apr. I
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Cash and d u e f r o m d e p o s i t o r y i n s t i t u t i o n s .
Total loans and securities
U . S . T r e a s u r y and govt, a g e n c y securities
O t h e r securities
F e d e r a l f u n d s soldT o commercial b a n k s in the United States
To others
O t h e r loans, g r o s s
C o m m e r c i a l and industrial
Bankers acceptances and commercial
paper
All o t h e r
U.S. addressees
Non-U.S. addressees
T o financial institutions
Commercial banks in the United S t a t e s .
B a n k s in foreign c o u n t r i e s
N o n b a n k financial institutions
T o foreign govts, and official institutions . .
F o r p u r c h a s i n g and c a r r y i n g securities . .
All o t h e r
Other assets (claims on nonrelated parties). .
N e t d u e f r o m related institutions
Total a s s e t s
D e p o s i t s or credit b a l a n c e s d u e to o t h e r
than directly related institutions . . . .
Transaction accounts and credit balances-'
Individuals, p a r t n e r s h i p s , and
corporations
Other
Nontransaction accounts4
Individuals, p a r t n e r s h i p s , and
corporations
Other
B o r r o w i n g s f r o m o t h e r t h a n directly
related institutions
Federal funds purchased5
F r o m c o m m e r c i a l b a n k s in the
United S t a t e s
From others
O t h e r liabilities for b o r r o w e d m o n e y . . . .
T o c o m m e r c i a l b a n k s in the
United S t a t e s
To others
O t h e r liabilities to n o n r e l a t e d parties
N e t d u e to related institutions
Total liabilities
Apr. 8
A p r . 15
A p r . 22
M a y 20
M a y 27
9,951
90.421
6.461
7,921
6,532
5,701
832
69,507
43.876
9,863
92,540
6,712
8,070
7,793
6,872
922
69,964
44,583
10,168
94.518
7,051
8.100
8.370
7,820
550
70.997
44.519
15,984
138,230'
2,693
908
4.534'
5,421
22,946'
15,086
142,858'
3.112
41.096
38.835
2.261
15.922
12.173
953
2.795
839
4.412'
5.493
23.587'
13.753
139.940'
3.184
40.710
38,438
2.271
15,397
11.650
908
2.839
746
3.900
5,511
23,847
14,863
140,419
3.139
40.737
38.467
2.270
16,452
12,729
924
2,799
657
2,968
5,554
24.447
14,246
139,065
3.270
41,313
38,945
2,368
16,536
12,666
1.061
2.809
572
2.697
5.576
24,613
16,921
143,937
3.237
41.282
39,006
2.275
16,953
13,116
950
2,887
595
3,105
5.825
24,208
16.283
145,178
40,160
2,982
40,955
3,232
41,955
3,392
43,556
3.786
43,491
3,442
43.684
3,275
43.389
3,322
43,949
3,781
1,781'
2,041'
1,351'
38.563
2.035'
1.750
39.771
2,019
1,423
40,048
1,993
40,409
2,066
1,256
40,067
2.046
1,735
40,169
9,722
89,702'
6,551
7,264
5,098
3,456
1,643
70,788'
43,871'
10,152
94.674'
6.370
7,278
9,212
7,235
1,976
71,815'
44,672'"
2,660
41,887'
39,587''
2.300 r
16,433
12.840
912
2,680
1.028
2,916'
5,488
22,625'
15,447
138,752
2.838
40.544'
38,228'
2.316'
16,396
12.750
900
2,747
1.153
3.274'
5,409
23.250'
15,467
136,569'
2,971
40,900'
38,612'"
2,289'
16,403
12,475
1,085
2,843
1,152
3.940'
5,422
3.126
41,546'
39,143'
2,404'
16.278
12,568
40,678
3,417
22,821'
1,018
10.282'
1,615'
37,261
37,177
1,906'
1,326'
37,723
30,116
7,145
30.058
7,120
30,502
7.221
31.374
7,189
32.299
7.471
32,480
7,569
32,849
7,559
32,492
7,575
32,887
7,282
58,121'
27,813
56,636'
25,702
57,452'"
25.848
58,461'
26,489
54,106'
23,451
53.936
25,553
50,976
21.121
58,021
27,050
55,359
24.053
16,972
10.841
30,307'
15.455
10,248
30,933'
15.480
10,368
31,604'
15,178
11,312
31.971'
12.771
10,680
30.655'
15,394
10.159
28.383
10,997
10,124
29,855
15,121
11,929
30,971
14.509
9,544
31,305
26.051
4.256'
24,474'
15,480
138,752
26,800
4,133'
25,563'
14.210'
136,569'
27,577
4,027'
25,889'"
13,934
138,230'
27,791
4,180'
26,252'"
16,190
142,858'"
26,439
4.216'
27,024
15.254
139.940'
24.322
4.061
27.271
15,721
140,419
25,671
4,184
27,828
16,576
139,065
26,037
4,933
28.044
14,483
143,937
26,670
4,635
27,630
18.239
145,178
72,964'
58,911'"
72.173'
58,200'
73,772'"
59,957'
74,872'"
61,224'
74,386'
60.165'
73.475
58,875
71,991
57,609
73,002
58,220
73,582
58,431
1.201
1. E f f e c t i v e J a n . 1. 1986, t h e r e p o r t i n g panel i n c l u d e s 65 U . S . b r a n c h e s and
agencies of foreign b a n k s that include t h o s e b r a n c h e s a n d a g e n c i e s with a s s e t s of
$750 million or m o r e on J u n e 30, 1980, plus t h o s e b r a n c h e s and a g e n c i e s that had
r e a c h e d the $750 million a s s e t level on D e c . 31. 1984.
2. I n c l u d e s securities p u r c h a s e d u n d e r a g r e e m e n t s to resell.
3. Includes credit b a l a n c e s , d e m a n d d e p o s i t s , and o t h e r c h e c k a b l e d e p o s i t s .
May 13
10,654
91,055
6.716
7.884
7,007
5,930
1,077
69,448
43,894
10.092
87,760'
6,748
7.225
4.173
2.837
1.336
69.614'
43,382'
MEMO
41 Total loans (gross) and securities a d j u s t e d 6
42 Total loans (gross) a d j u s t e d 6
May 6
92.318'
6,728
7,493
7.223
5.759
1.464
70.874'"
44.208
10,354
90.327'
6,966
7.087
5,862
4,523
1,339
70,412'
44,547'
1,802'
A p r . 29
1,282
4. I n c l u d e s savings d e p o s i t s , m o n e y m a r k e t d e p o s i t a c c o u n t s , a n d time
deposits.
5. Includes securities sold u n d e r a g r e e m e n t s to r e p u r c h a s e .
6. E x c l u s i v e of loans to and federal f u n d s sold to c o m m e r c i a l b a n k s in the
United S t a t e s .
A44
1.31
DomesticNonfinancialStatistics • August 1987
G R O S S D E M A N D D E P O S I T S I n d i v i d u a l s , Partnerships, and C o r p o r a t i o n s '
Billions of dollars, estimated daily-average balances, not seasonally adjusted
Commercial banks
T y p e of holder
1981
Dec.
1982
Dec.
1983
Dec.
1985
1984
Dec.
Dec. 3 - 4
1 All holders—Individuals, partnerships, and
corporations
i
3
4
5
6
Financial business
Nonfinancial business
Consumer
Foreign
Other
1986
Mar.
1987
Sept.
June
Dec.
Mar.
288.9
291.8
293.5
302.7
321.0
307.4
322.4
333.6
363.6
336.0
28.0
154.8
86.6
2.9
16.7
35.4
150.5
85.9
3.0
17.0
32.8
161.1
78.5
3.3
17.8
31.7
166.3
81.5
3.6
19.7
32.3
178.5
85.5
3.5
21.2
31.8
166.6
84.0
3.4
21.6
32.3
180.0
86.4
3.0
20.7
35.9
185.9
86.3
3.3
22.2
41.4
202.0
91.1
3.3
25.8
35.9
183.1
88.9
2.9
25.2
Weekly reporting banks
1981
Dec.
1982
Dec.
1983
Dec.
1984
Dec. 2
1985
Dec. 5 - 4
7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
Mar.
June
1987
Sept.
Dec.
Mar.
137.5
144.2
146.2
157.1
168.6
159.7
168.5
174.7
195.1
178.2
21.0
75.2
30.4
2.8
8.0
26.7
74.3
31.9
2.9
8.4
24.2
79.8
29.7
3.1
9.3
25.3
87.1
30.5
3.4
10.9
25.9
94.5
33.2
3.1
12.0
25.5
86.8
32.6
3.3
11.5
25.7
93.1
34.9
2.9
11.9
28.9
94.8
35.0
3.2
12.8
32.5
106.4
37.5
3.3
15.4
28.7
94.4
36.8
2.8
15.5
1. Figures include cash items in process of collection. Estimates of gross
deposits are based on reports supplied by a sample of commercial banks. Types of
depositors in each category are described in the June 1971 BULLETIN, p. 466.
Figures may not add to totals because of rounding.
2. Beginning in March 1984, these data reflect a change in the panel of weekly
reporting banks, and are not comparable to earlier data. Estimates in billions of
dollars for December 1983 based on the new weekly reporting panel are: financial
business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1; other.
9.5.
3. Beginning March 1985, financial business deposits and, by implication, total
gross demand deposits have been redefined to exclude demand deposits due to
1986
thrift institutions. Historical data have not been revised. The estimated volume of
such deposits for December 1984 is $5.0 billion at all insured commercial banks
and $3.0 billion at weekly reporting banks.
4. Historical data back to March 1985 have been revised to account for
corrections of bank reporting errors. Historical data before March 1985 have not
been revised, and may contain reporting errors. Data for all commercial banks for
March 1985 were revised as follows (in billions of dollars): all holders, - . 3 ;
financial business, - . 8 ; nonfinancial business, - . 4 ; consumer, .9; foreign, .1;
other, - . 1 . Data for weekly reporting banks for March 1985 were revised as
follows (in billions of dollars): all holders. - . 1 ; financial business. - . 7 ; nonfinancial business, - . 5 ; consumer, 1.1; foreign, .1; other, - . 2 .
Financial Markets
1.32
COMMERCIAL PAPER A N D B A N K E R S DOLLAR ACCEPTANCES
A23
OUTSTANDING
Millions of dollars, end of period
1986
1982
Dec.
Instrument
1983
Dec.
1985
Dec.
1984
Dec.
1986
Dec.
Nov.
1987
Dec.
Jan.
Feb.
Mar.
Apr.
Commercial paper (seasonally adjusted unless noted otherwise)
166,436
1 All issuers
2
3
4
5
6
Financial companies 3
Dealer-placed
paper4
Total
Bank-related (not seasonally
adjusted)
Directly placed
paper5
Total
Bank-related (not seasonally
adjusted)
Nonfinancial companies 6
187,658
237,586
300,899
331,016
322,435
34,605
44.455
56.485
78,443
100,207 r
2,516
2,441
2,035
1.602
2,265
84,393
97.042
110.543
135,504
152,385
146,856
32.034
47,437
35,566
46,161
42,105
70,558
44.778
86,952
40.860
78,424'
39,205
80,403'
95,176'
2,035'
331,016
337,190
336,677
338,797
346,769
100,207'
101,965'
102,939'
102,889
103,957
2,265
2,284
2,174
2,116
2,307
152,385
157.252
158,954
159,333
163,421
45,722
74,784'
46,634
76,575
48,604
79,391
40,860
78,424'"
45,085
77,973'
Bankers dollar acceptances (not seasonally adjusted) 7
79,543
11
12
13
68,413
64,974
64,952
64,974
65,049
65,144
65,954 r
66,660
9,355
8.125
1,230
9,811
8.621
1,191
11,197
9,471
1.726
13,423
11.707
1,716
12,787
10,951
1,835
13.423
11,707
1,716
13,224
10,662
2,561
11.828
10.006
1,821
12,255'
10,516
1,730'
11,118
9,721
1,396
418
729
67,807
0
671
67,881
0
937
56,279
0
1,317
50,234
0
1,052
51,113
0
1,317
50,234
0
983
50,843
0
1,230
52,087
0
1,453
52,255'
0
1,519
54,024
17,683
16,328
45.531
Basis
14 Imports into United States
15 Exports from United States
16 All other
8
9
10
78,364
1.480
949
66.204
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others
78,309
10.910
9,471
1,439
7 Total
15.649
16,880
45,781
17.845
16.305
44,214
15.147
13,204
40,062
14,670
12.960
37.344'
15,354
12.699
36,899
14,670
12,960
37,344
14,459
12,783
37,807
14,615
12,876'
37,654'
14,711'
13,083'
38,159'
15,095
13,826
37,739
1. Effective Dec. 1, 1982, there was a break in the commercial paper series. The
key changes in the content of the data involved additions to the reporting panel,
the exclusion of broker or dealer placed borrowings under any master note
agreements from the reported data, and the reclassification of a large portion of
bank-related paper from dealer-placed to directly placed.
2. Correction of a previous misclassification of paper by a reporter has created
a break in the series beginning December 1983. The correction adds some paper to
nonfinancial and to dealer-placed financial paper.
3. Institutions engaged primarily in activities such as, but not limited to.
commercial, savings, and mortgage banking; sales, personal, and mortgage
financing; factoring, finance leasing, and other business lending; insurance
underwriting: and other investment activities.
1.33
4. Includes all financial company paper sold by dealers in the open market.
5. As reported by financial companies that place their paper directly with
investors.
6. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
7. Beginning October 1984, the number of respondents in the bankers acceptance survey were reduced from 340 to 160 institutions—those with $50 million or
more in total acceptances. The new reporting group accounts for over 95 percent
of total acceptances activity.
P R I M E R A T E C H A R G E D B Y B A N K S on Short-Term Business Loans
Percent per annum
Average
rate
Eifective Date
10.50
10.00
9.50
8.00
7.50
1987—Apr.
May
7.75
8.00
8.25
I
1
15
NOTE. These data also appear in the Board's H.15 (519) release. For address,
see inside front cover.
1985—Jan.
Feb.
Mar.
Apr.
May
June
Julv
Aug.
Sept
Oct.
Nov.
Dec.
10.61
10.50
10.50
10.50
10.31
9.78
9.50
9.50
9.50
9.50
9.50
9.50
1986—Jan. .
Feb.
Mar.
9.00
8.50
1986—July 11
Aug. 26
9.50
9.50
9.10
1986—Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
1987—Jan
Feb
Mar
Apr
May
June
A44
1.35
DomesticNonfinancialStatistics • August 1987
I N T E R E S T R A T E S M o n e y and Capital M a r k e t s
Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.
1987
Instrument
1984
1985
1987, week ending
1986
Feb.
Mar.
Apr.
May
May 1
May 8
May 15
May 22
May 29
M O N E Y M A R K E T RATES
1 Federal funds 1 - 2
2 Discount window borrowing'- 2 - 3
Commercial paper 4 - 5
3
1-month
4
3-month
s
6-month
Finance paper, directly placed 4 - 5
6
1-month
V 3-month
8
6-month
Bankers acceptances 5 - 6
9
3-month
6-month
10
Certificates of deposit, secondary market 7
II
I-month
12
3-month
13
6-month
14 Eurodollar deposits, 3-month 8
U.S. Treasury bills 5
Secondary market 9
15
3-month
16
6-month
1-year
17
Auction average 1 0
18
3-month
19
6-month
20
1-year
10.22
8.80
8.10
7.69
6.80
6.33
6.10
5.50
6.13
5.50
6.37
5.50
6.85
5.50
6.50
5.50
7.30
5.50
6.75
5.50
6.77
5.50
6.80
5.50
10.05
10.10
10.16
7.94
7.95
8.01
6.62
6.49
6.39
6.12
6.05
5.99
6.22
6.16
6.10
6.39
6.45
6.50
6.83
6.93
7.04
6.59
6.74
6.85
6.76
6.83
6.91
6.78
6.85
6.93
6.94
7.11
7.27
6.88
6.99
7.12
9.97
9.73
9.65
7.91
7.77
7.75
6.58
6.38
6.31
6.02
5.88
5.79
6.11
5.95
5.88
6.28
6.22
6.14
6.78
6.74
6.47
6.43
6.42
6.29
6.73
6.67
6.44
6.76
6.74
6.47
6.86
6.83
6.52
6.81
6.76
6.47
10.14
10.19
7.92
7.96
6.39
6.29
5.99
5.93
6.09
6.02
6.41
6.44
6.91
7.03
6.68
6.77
6.75
6.85
6.82
6.92
7.15
7.30
6.98
7.11
10.17
10.37
10.68
10.73
7.97
8.05
8.25
8.28
6.61
6.52
6.51
6.71
6.10
6.10
6.10
6.32
6.18
6.17
6.18
6.37
6.42
6.52
6.65
6.73
6.81
6.99
7.24
7.25
6.59
6.78
7.03
6.94
6.69
6.85
7.07
7.11
6.72
6.89
7.11
7.10
7.00
7.23
7.53
7.36
7.03
7.33
7.36
9.52
9.76
9.92
7.48
7.65
7.81
5.98
6.03
6.08
5.59
5.59
5.63
5.59
5.60
5.68
5.64
5.90
6.09
5.66
6.05
6.52
5.69
6.05
6.31
5.61
5.91
6.39
5.69
5.95
6.54
5.68
6.21
6.71
5.67
6.17
6.48
9.57
9.80
9.91
7.49
7.66
7.76
5.97
6.02
6.07
5.59
5.60
5.74
5.56
5.56
5.68
5.76
5.93
5.92
5.75
6.11
6.56
5.79
6.14
n.a.
5.81
6.16
n.a.
5.47
5.74
6.56
6.03
6.34
n.a.
5.70
6.18
n.a.
10.89
11.65
11.89
12.24
12.40
12.44
12.48
12.39
8.43
9.27
9.64
10.13
10.51
10.62
10.97
10.79
6.46
6.87
7.06
7.31
7.55
7.68
7.85
7.80
5.96
6.40
6.56
6.79
7.06
7.25
n.a.
7.54
6.03
6.42
6.58
6.79
7.06
7.25
n.a.
7.55
6.50
7.02
7.32
7.57
7.83
8.02
n.a.
8.25
7.00
7.76
8.02
8.26
8.47
8.61
n.a.
8.78
6.76
7.44
7.71
7.92
8.16
8.32
n.a.
8.54
6.88
7.60
7.87
8.09
8.33
8.49
n.a.
8.67
7.03
7.73
8.00
8.24
8.47
8.61
n.a.
8.77
7.20
8.00
8.27
8.52
8.71
8.84
n.a.
9.00
6.95
7.78
8.01
8.23
8.42
8.55
n.a.
8.71
11.99
10.75
8.14
7.69
7.62
8.31
8.79
8.57
8.66
8.76
9.03
8.73
9.61
10.38
10.10
8.60
9.58
9.11
6.95
7.76
7.32
6.05
6.98
6.61
6.25
7.25
6.66
7.20
8.29
7.55
7.61
8.78
8.00
7.40
8.55
7.85
7.55
8.70
7.86
7.50
8.65
7.82
7.80
8.95
8.31
7.60
8.80
8.03
13.49
12.71
13.31
13.74
14.19
12.05
11.37
11.82
12.28
12.72
9.71
9.02
9.47
9.95
10.39
9.03
8.38
8.88
9.20
9.65
8.99
8.36
8.84
9.13
9.61
9.35
8.85
9.15
9.36
10.04
9.82
9.33
9.59
9.83
10.51
9.64
9.21
9.40
9.58
10.37
9.68
9.21
9.42
9.64
10.45
9.75
9.25
9.52
9.77
10.45
9.97
9.49
9.77
9.99
10.62
9.93
9.40
9.73
9.98
10.58
13.81
12.06
9.61
8.82
8.84
9.51
10.05
9.90
9.87
10.10
10.27
10.05
11.59
4.64
10.49
4.25
8.76
3.48
7.93
3.02
7.52
2.90
7.94
2.99
8.41
3.02
8.26
3.05
8.22
2.94
8.36
2.96
8.52
3.14
8.55
3.03
6.86
CAPITAL MARKET R A T E S
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
U.S. Treasury notes and b o n d s "
Constant maturities 1 2
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
Composite 1 3
Over 10 years (long-term)
State and local notes and bonds
Moody's series 1 4
Aaa
Baa
Bond Bu\er series 1 5
Corporate bonds
Seasoned issues 1 6
All industries
Aaa
Aa
A
Baa
A-rated. recently-offered utility
bonds 1 7
MEMO; Dividend/price ratio 1 8
39
Preferred stocks
40
Common stocks
1. Weekly and monthly figures are averages of all calendar days, where the
rate for a weekend or holiday is taken to be the rate prevailing on the preceding
business day. The daily rate is the average of the rates on a given day weighted by
the volume of transactions at these rates.
2. Weekly figures are averages for statement week ending Wednesday.
3. Rate for the Federal Reserve Bank of New York.
4. Unweighted average of offering rates quoted by at least five dealers (in the
case of commercial paper), or finance companies (in the case of finance paper).
Before November 1979, maturities for data shown are 30-59 days, 90-119 days,
and 120-179 days for commercial paper; and 30-59 days. 90-119 days, and 150179 days for finance paper.
5. Yields are quoted on a bank-discount basis, rather than an investment yield
basis (which would give a higher figure).
6. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quoted by the dealers).
7. Unweighted average of offered rates quoted by at least five dealers early in
the day.
8. Calendar week average. For indication purposes only.
9. Unweighted average of closing bid rates quoted by at least five dealers.
10. Rates are recorded in the week in which bills are issued. Beginning with the
Treasury bill auction held on Apr. 18, 1983, bidders were required to state the
percentage yield (on a bank discount basis) that they would accept to two decimal
places. Thus, average issuing rates in bill auctions will be reported using two
rather than three decimal places.
11. Yields are based on closing bid prices quoted by at least five dealers.
12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields
are read from a yield curve at fixed maturities. Based on only recently issued,
actively traded securities.
13. Averages (to maturity or call) for all outstanding bonds neither due nor
callable in less than 10 years, including one very low yielding " f l o w e r " bond.
14. General obligations based on Thursday figures; M o o d y ' s Investors Service.
15. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
16. Daily figures from M o o d y ' s Investors Service. Based on yields to maturity
on selected long-term bonds.
17. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of
call protection. Weekly data are based on Friday quotations.
18. Standard and Poor's corporate series. Preferred stock ratio based on a
sample o f t e n 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
S e l e c t e d Statistics
1987
1986
Indicator
1984
1985
1986
Sept.
Oct.
Nov.
Dec.
Jan.
Mar.
Feb.
Apr.
May
Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange
(Dec. 31. 1965 = 50)
2
Industrial
Transportation
Utility
Finance
6 Standard & P o o r ' s Corporation (1941-43 = 10)1
7 American Stock Exchange 2
(Aug. 31, 1973 = 50)
92.46
108.01
85.63
46.44
89.28
160.50
108.09
123.79
104.11
56.75
114.21
186.84
136.00
155.85
119.85
71.35
147.18
236.34
137.06
156.52
114.06
74.56
145.56
238.27
136.74
156.56
120.04
73.38
143.89
237.36
140.84
162.10
122.27
75.77
142.97
245.09
142.12
163.85
121.26
76.07
144.29
248.61
151.17
175.60
126.61
78.54
153.32
264.51
160.23
189.17
135.49
78.19
158.41
280.93
166.43
198.95
138.55
77.15
162.41
292.47
163.88
199.03
137.91
72.74
150.52
289.32
163.00
198.78
141.30
71.64
145.97
289.12
207.96
229.10
264.38
264.30
257.82
265.14
264.65
289.02
315.60
332.55
330.65
328.77
Volume of trading (thousands
8 New York Stock Exchange
9 American Stock Exchange
91,084 109,191 141,306
6,107
8,355 11,846
148,228 192,419
12.272 14,755
183,478
14,962
180,251
15,678
187,135
14,420
170,898
11,655
of
shares)
150.831 131,155 154,770
10,853
8,930 10,513
Customer financing (end-of-period balances, in millions of dollars)
10 Margin credit at broker-dealers 3
Free credit balances
11 Margin-account 5
12 Cash-account
at
22,470
28,390
36,840
34,580
36,310
37,090
36,840
34,960
35,740
38,080
39,820
38,890
1,755
10,215
2,715
12,840
4,880
19,000
3,395
14,060
3,805
14,445
3,765
15,045
4,880
19,000
5,060
17,395
4,470
17,325
4,730
17,370
4,660
17,285
4,355
16,985
brokers4
Margin requirements (percent of market value and effective date) 6
Mar. 11, 1968
13 Margin stocks
14 Convertible bonds
15 Short sales
June 8, 1968
70
50
70
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.
80
60
80
May 6, 1970
65
50
65
Dec. 6, 1971
55
50
55
Nov. 24, 1972
65
50
65
Jan. 3, 1974
50
50
50
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on d e m a n d .
5. N e w series beginning June 1984.
6. Regulations G, T, and U of the Federal Reserve Board of G o v e r n o r s ,
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. T h e term "margin s t o c k s " is defined in the
corresponding regulation.
A44
1.37
DomesticNonfinancialStatistics • August 1987
SELECTED FINANCIAL INSTITUTIONS
S e l e c t e d A s s e t s and Liabilities
Millions of dollars, end of period
1986
May
June
July
Aug.
1987
Sept.
Nov.
Oct.
Dec.
Jan.
Feb.
Mar.
Savings and loan associations
1 Assets
903,488
948,781
963,274
954,226
957,945
965,032
957,229
961,894
964,096
963,316'
935,424
936,903
2 Mortgages
555,291
4 Cash and investment securities' .
5 Other
124,801
223,396
583,235
97,303
126,712
238,833
574,992
108,324
134,881
253,400
565,037
113,158
130,877
258,310
565,353
113,100
132,787
259,798
566,438
113,621
138,863
259,726
557,137
117,617
138,619
261,415
557,303
121,606
138,213'
250,781'
556,780
122,682
141,510'
250,297'
553,552
123,257
142,700'
251,769'
n.a.
128,695
133,237
260,892
n.a.
128,097
136,226
262,921
6 Liabilities and net worth
903,488
948,781
963,274
954,226
957,945
965,032
957,229
961,894
964,096
963,316' 935,424
936,903
725,045
125,666
64,207
61,459
17,944
750,071
138,798
73,888
64,910
19,045
751,138
145,032
73,520
71,512
24,722
744,026
148,054
73,553
74,501
20,792
747,020
146,578
75,058
71,520
22,785
749.020
148.541
75,594
72,947
24,706
743,518
155,748
80,364
75,384
15,461
742,747
152,567
75,295
77,272
23,255
740,066
156,920
75,626
81,294
24,078
741,081' 721,574
159,742' 152,981
75,552
80,194
79,548'
77,429
20,071'
19,969
722,082
151,786
75,673
76,113
22,015
34,833
41,064
42,382
41,353
41,560
42.764
42,503
43,326
43,034
42,423'
40,901
41,019
61,305
54,475
57,997
57,200
55,687
53.180
51,163
49,887
48,222
41,650
n.a.
n.a.
7 Savings capital
8 Borrowed money
9
FHLBB
10
Other
11 Other
12 Net worth 2
n a.
MEMO
13 Mortgage loan commitments
outstanding 3
F S L l C - i n s u r e d federal savings banks
14 Assets
98,559
131,868
164,129
180,124
183,317
186,810
196,225
202,106
204,918
210,562
235,351
235,661
15 Mortgages
16 Mortgage-backed securities. . . .
17 Other
57,429
9,949
10,971
72,355
15,676
11,723
89,108
19,829
15,083
99,758
21,598
16,774
101,755
23,247
17,027
103,019
24,097
17,056
108,627
26,431
18,509
110,826
27,516
18,697
112,117
28,324
19,266
113,638
29,766
19,034
136,707
33,393
15,948
136,428
34,457
16,209
18 Liabilities and net worth
98,559
131,868
164,129
180,124
183,317
186,810
196,225
202,106
204,918
210,562
235,351
235,661
19
20
21
22
23
24
79,572
12,798
7,515
5,283
1,903
4,286
103,462
19,323
10,510
8,813
2,732
6,351
126,123
25,686
12,830
12,856
4,338
7,982
138,168
28,502
15,301
13,201
4,279
9,175
140,610
28,722
15,866
12,856
4,564
9.422
142,858
29,390
16,123
13,267
4,914
9,647
149,074
32,319
16,853
15,466
4,666
10,165
152,834
33,430
17,382
16,048
5,330
10,511
154,447
33,937
17,863
16,074
5,652
10,883
157,872
37,329
19,897
17,432
4,263
11,098
176,722
40,502
20,730
19,772
5,321
12,811
177,335
39,623
20,226
19,397
5,540
13,165
3,234
5,355
8,762
9,410
10,139
9,770
10,221
9,356
9,952
8,686
n.a.
n.a.
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
n a.
MEMO
25 Mortgage loan commitments
outstanding 3
Savings banks
203,898
216,776
226,495
223,367
224,569
227,011
228,854
230,919
232,577
236,866
235,603
238,074
240,739
102,895
24,954
110,448
30,876
112,417
35,500
110,958
36,692
111,971
36,421
113,265
37,350
114,188
37,298
116,648
36,130
117,612
36,149
118,323
35,167
119,199
36,122
119,737
37,207
121,178
38,012
14,643
19,215
2,077
23,747
4,954
11,413
13,111
19,481
2,323
21,199
6,225
13,113
13,210
22,546
2,343
20,260
6,225
13,994
12,115
22,413
2,281
2,036
5,301
13,244
12,297
22,954
2,309
20,862
4,651
13,104
12,043
21,161
2,400
20,602
5,018
13,172
12,357
23,216
2,407
20,902
4,811
13,675
12,585
23,437
2,347
21,156
5,195
13,421
13,037
24,051
2,290
20,749
5,052
13,637
14,209
25,836
2,185
20,459
6,894
13,793
13,332
26,220
2,180
19,795
5,239
13,516
13,525
26,893
2,168
19,770
5,143
13,631
13,631
27,463
2,041
19,598
5,703
13,713
35 Liabilities
203,898
216,776
226,495
223,367
224,569
227,011
228,854
230,919
232,577
236,866
235,603
238,074
240,739
36 Deposits
37
Regular 4
38
Ordinary savings
39
Time
40
Other
41 Other liabilities
42 General reserve accounts
180,616
177,418
33,739
104,732
3,198
12,504
10,510
185,972
181,921
33,018
103,311
4,051
17,414
12,823
190,310
185,716
33,577
105,146
4,594
21,384
14,519
189,109
183,970
34,008
103,083
5,139
19,226
14,731
188,615
183,433
34,166
102,374
5,182
20,641
15,084
189,937
184,764
34,530
102,668
5,173
21,360
15,427
190,210
185,002
35,227
102,191
5,208
21,947
16,319
190,334
185,254
36,165
101,125
5,080
23,319
16,896
190,858
185,958
36,739
101,240
4,900
24,254
17,146
192,194
186,345
37,717
100,809
5,849
25,274
18,105
191,441
186,385
38,467
100,604
5,056
24,710
18,236
192,559
187,597
39,370
100,922
4,962
25,663
18,486
193,693
188,432
40,558
100,896
5,261
27,003
18,830
26 Assets
27
28
29
30
31
32
33
34
Loans
Mortgage
Other
Securities
U.S. government
Mortgage-backed s e c u r i t i e s . . .
State and local g o v e r n m e n t . . .
Corporate and other
Cash
Other assets
Financial Markets
All
1.37—Continued
1986
Account
1984
1987
1985
May
June
July
Aug.
Oct.
Sept.
Credit unions
Nov.
Dec.
Jan.
Feb.
Mar.
n a.
n a.
n a.
n a.
n a.
5
43 Total assets/liabilities and capital .
93,036
118,010
132,415
134,703
137,901
139,233
140,4%
143,662
145,653
147,726
44
45
63,205
29,831
77,861
40,149
86,289
46,126
87,579
47,124
89,539
48,362
90,367
48,866
91,981
48,515
93,257
50,405
94,638
51,015
95.483
52,243
62.561
42,337
20,224
84,348
57,539
26,809
73,513
47,933
25,580
105,963
70,926
35,037
76,774
49,950
26,824
120,331
79,479
40,852
77,847
50,613
27,234
122,952
80,975
41,977
79,647
51,331
28,316
125,331
82,596
42,735
80,656
52,007
28,649
126,268
83,132
43,136
81.820
53,042
28,778
128,125
84,607
43,518
83,388
53,434
29,954
130,483
86,158
44,325
84,635
53,877
30,758
131,778
87,009
44,769
86,137
55,304
30,833
134,327
87,954
46,373
Federal
State
46 Loans outstanding
47
Federal
48
State
49 Savings
50
Federal
State
51
Life insurance companies
52 Assets
53
54
55
56
57
58
59
60
61
62
63
Securities
Government
United States 6
State and local
Foreign 7
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
722,979
825,901
863,610
872,359
877,919
887,255
892,304
860,682
910,691
920,771
931,962
63,899
42,204
8,713
12,982
359,333
295,998
63,335
156,699
25,767
54,505
63,776
75,230
51,700
9,708
13,822
423,712
346,216
77,496
171,797
28,822
54,369
71,971
79,051
55,120
9,930
14,001
450,279
364,122
86,157
177,554
30,025
54,351
72,352
78,284
54,197
10,114
13,973
455,119
367,966
87,153
180,041
30,350
57,342
74,223
78,722
54,321
10,350
14,051
455,013
369,704
85,309
182,542
31,151
54,249
76,214
79,188
54,487
10,472
14,229
463,135
374,670
88,465
183,943
31,844
54,247
74,898
81,636
56,698
10,606
14,332
462,540
378,267
84.273
185,268
31,725
54.273
76,862
82,047
57,511
10,212
14,324
467,433
381,381
86,052
186,976
31,918
54,199
77,798
84,858
59,802
10,712
14,344
473,860
386,293
87,567
189,460
32,184
54,152
76,177
85,849
61,494
10,267
14,088
474,485
386,994
87,491
192,975
32,079
54,016
81,367
85,000
61,014
10,048
13,938
487,837
395,994
91,843
193,395
32,229
53,692
79,809
1. Holdings of stock of the Federal H o m e Loan Banks are in " o t h e r a s s e t s . "
2. .includes net undistributed income accrued by most associations.
3. As of July 1985, data include loans in process.
4. Excludes checking, club, and school accounts.
5. Data include all federally insured credit unions, both federal and state
chartered, serving natural persons.
6. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under " B u s i n e s s " securities.
7. Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
NOTE. Savings and loan associations:
Estimates by the F H L B B for all
associations in the United States based on annual benchmarks for non-FSLICinsured associations and the experience of FSLIC-insured associations.
FSLlC-insured
federal savings banks: Estimates by the F H L B B for federal
savings banks insured by the F S L I C and based on monthly reports of federally
insured institutions.
Savings banks: Estimates by the National Council of Savings Institutions for all
savings banks in the United States and for FDIC-insured savings banks that have
converted to federal savings banks.
Credit unions: Estimates by the National Credit Union Administration for
federally chartered and federally insured state-chartered credit unions serving
natural persons.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for
differences between market and book values are not made on each item separately
but are included, in total, in " o t h e r a s s e t s . "
A44
1.38
DomesticNonfinancialStatistics • August 1987
FEDERAL FISCAL A N D FINANCING
OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
Fiscal
year
1984
Fiscal
year
1985
Fiscal
year
1986
1986
Dec.
1987
Jan.
Feb.
Mar.
Apr.
May
55,463
37,919
17,544
83,828
67,138
16,690
-28,366
-29.219
854
56,515
38,469
18,046
84,527
67,872
16,655
-28,012
-29,403
1,391
122,897
99,083
23,814
84,240
69,215
15,025
38,657
29,867
8.790
47,691
30,205
17,486
83,435
66,389
17,046
-35,744
-36,184
440
1
U.S. budget
1 Receipts, total
On-budget
3
Off-budget
4 Outlays, total
5
On-budget
6
Off-budget
V Surplus, or deficit ( - ) , total
8
On-budget
9
Off-budget
•>
Source of financing (total)
Borrowing from the public
Cash and monetary assets (decrease, or
increase ( - ) ) 2
Other 3
12
10
11
666.457
500.382
166,075
851.781
685,968
165,813
-185,324
-185,586
262
734.057
547,886
186,171
946,316
769,509
176,807
-212,260
-221,623
9.363
170,817
197,269
236.284
22,824
4,353
15,248
7,884
9,075
13,005
6,631
7,875
13.367
1,630
-14.324
-1.235
-14,751
4,004
-9,564
7,381
16,574
-3,456
15,621
4,506
-47,189
-543
24.217
-1,478
30,426
8,514
21,913
17.060
4.174
12.886
31,384
7,514
23.870
30,946
7,588
23,357
41,307
15,746
25,561
24,816
3,482
21,334
8,969
3,576
5,394
55,744
29,688
26,056
33,106
6,383
26,723
769,091
568,862
200,228
989,815
806.318
183,498
-220.725
-237.455
16.371
78,035
60,694
17,341
89,158
74,669
14,489
-11,123
-13,976
2.853
81,771
62,981
18,790
83,942
68,176
15,766
-2,170
-5,195
3,024
MEMO
13 Treasury operating balance (level, end of
period)
14
Federal Reserve Banks
15
Tax and loan accounts
1. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985. all former off-budget entries are now presented on-budget. The Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the F F B to finance their programs. The act has also moved two
social security trust funds (Federal old-age survivors insurance and Federal
disability insurance trust funds) off-budget.
2. Includes U.S. Treasury operating cash accounts; SDRs; reserve position on
the U.S. quota in the I M F ; loans to International Monetary Fund; and other cash
and monetary assets.
3. Includes accrued interest payable to the public; allocations of special
drawing rights; deposit funds; miscellaneous liability (including checks outstanding) and asset accounts; seigniorage; increment on gold; net gain/loss for U.S.
currency valuation adjustment; net gain/loss for I M F valuation adjustment; and
profit on the sale of gold.
SOURCES. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
G o v e r n m e n t " and the Budget of the U.S.
Government.
Federal Finance
1.39
A29
U.S. BUDGET RECEIPTS A N D OUTLAYS
Millions of dollars
Calendar year
Source or type
Fiscal
year
1985
Fiscal
year
1986
1985
HI
1987
1986
H2
HI
H2
Mar.
Apr.
May
RECEIPTS
734,057
1 All sources
? Individual income taxes, net
3
Withheld
Presidential Election Campaign Fund . . .
4
5
Non withheld
Refunds
6
Corporation income taxes
7
Gross receipts
8
Refunds
9 Social insurance taxes and contributions.
net
Employment taxes and
10
contributions'
Self-employment taxes and
11
contributions 2
Unemployment insurance
1?
Other net receipts 3
13
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 4
769,091
380,618
364,790
394,345
387,524
56,515
122,897
47,691
334,531
298,941
35
101,328
65,743
348,959
314,838
36
105,994
71,873
166,783
149,288
29
76,155
58,684
169,987
155,725
6
22,295
8,038
169,444
153,919
31
78,981
63,488
183,156
164,071
4
27,733
8,652
14,240
27,608
10
4,106
17,482
71,850
26,943
7
62,939
18,039
9,275
24,823
7
7,228
22,782
77,413
16,082
80,442
17,298
42,193
8,370
36,528
7,751
41,946
9,557
42,108
8,230
15,948
2,834
13,290
2,101
2,885
1,042
265,163
283,901
144,598
128,017
156,714
134,006
23,689
33,646
30,218
234,646
255,062
126,038
116,276
139,706
122,246
23,128
30,457
22,270
10,468
25,758
4,759
11,840
24,098
4,742
9,482
16,213
2,350
985
9,281
2,458
10,581
14,674
2,333
1,338
9,328
2,429
669
186
375
7,403
2,827
361
732
7,529
419
35,992
12,079
6,422
18,539
32,919
13,323
6,958
19,887
17,259
5,807
3,204
9,144
18,470
6,354
3,323
9,861
15,944
6,369
3,487
10,002
15,947
7,282
3,649
9,605
2,511
1,220
570
1,171
2,471
1,165
810
1,767
2,633
1,142
726
1,853
OUTLAYS
18 All types
946,223
989,789
463,842
487,188
486,037
504,785
84,527
84,240
83,435
19
70
21
2?
73
24
National defense
International affairs
General science, space, and technology . . .
Energy
Natural resources and environment
Agriculture
252,748
16,176
8,627
5,685
13,357
25,565
273,369
14,471
9,017
4,792
13,508
31,169
124,186
6,675
4,230
680
5,892
11,705
134,675
8,367
4,727
3,305
7,553
15,412
135,367
5,384
12,519
2,484
6,245
14,482
138,544
8,876
4,594
2,735
7,141
16,160
24,742
681
703
441
1,092
2,453
24,407
163
653
361
1,052
2,641
23,471
831
779
356
985
716
75
26
27
28
Commerce and housing credit
Transportation
Community and regional development . . . .
Education, training, employment, social
services
4,229
25,838
7,680
4,258
28,058
7,510
-260
11,440
3,408
644
15,360
3,901
860
12,658
3,169
3,647
14,745
3,494
1,677
1,982
490
1,129
1,936
592
997
2,089
585
29,342
29,662
14,149
14,481
14,712
15,268
2,440
2,317
2,255
79 Health
30 Social security and medicare
31 Income security
33,542
254,446
128,200
35,936
190,850
120,686
16,945
128,351
65,246
17,237
129,037
59,457
17,872
135,214
60,786
19,814
138,296
59,628
3,263
23,407
10,910
3,672
23,615
11,282
3,544
23,782
10,273
37 Veterans benefits and services
33 Administration of justice
34 General government
3 5 General-purpose fiscal assistance
36 Net interest 5
6
37 Undistributed offsetting receipts
26,352
6,277
5,228
6,353
129,436
-32,759
26,614
6,555
6,796
6,430
135,284
11,956
3,016
2,857
2,659
65,143
-14,436
12,193
3,352
3,566
2,179
68,054
-17,193
14,497
3,360
2,786
2,767
65,816
-33,244
14,527
3,212
3,634
3,391
67,448
-17,953
1,137
570
439
61
10,971
-2,932
2,360
619
196
179
11,295
-4,230
2,047
646
358
62
12,284
-2,626
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 f u n d .
4. Deposits of earnings by Federal Reserve Banks and other miscellaneous
receipts.
-17,426
5. Net interest function includes interest received by trust f u n d s .
6. Consists of rents and royalties on the outer continental shelf and U . S .
government contributions for employee retirement.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
G o v e r n m e n t , " and the Budget of the U.S. Government,
Fiscal Year 1988.
A44
1.40
DomesticNonfinancialStatistics • August 1987
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1985
1987
1986
Item
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
1 Federal debt outstanding
1,715.1
1.779.0
1,827.5
1,950.3
1,991.1
2,063.6
2,129.5
2,218.9
2,250.7
~> Public
1,710.7
1,415.2
295.5
1.774.6
1,460.5
314.2
1,823.1
1,506.6
316.5
1,945.9
1,597.1
348.9
1,986.8
1,634.3
352.6
2,059.3
1,684.9
374.4
2,125.3
1,742.4
382.9
2,214.8
1,811.7
403.1
2,246.7
1,839.3
407.5
4.4
3.3
1.1
4.4
3.3
1.1
4.4
3.3
1.1
4.4
3.3
1.1
4.3
3.2
1.1
4.3
3.2
1.1
4.2
3.2
1.1
4.0
3.0
1.1
4.0
2.9
1.1
debt securities
Held by public
Held by agencies
3
4
6
7
Agency securities
Held by public
Held by agencies
Dec. 31
Mar. 31
1,711.4
1,775.3
1,823.8
1,932.4
1,973.3
2,060.0
2,111.0
2,200.5
2,232.4
9 Public debt securities
10 Other debt 1
1,710.1
1.3
1,774.0
1.3
1,822.5
1.3
1.931.1
1.3
1,972.0
1.3
2.058.7
1.3
2,109.7
1.3
2,199.3
1.3
2,231.1
1.3
11 MEMO: Statutory debt limit
1,823.8
1,823.8
1.823.8
2,078.7
2,078.7
2,078.7
2.111.0
2,300.0
2,300.0
8 Debt subject to statutory limit
1. Includes guaranteed debt of government agencies, specified participation
certificates, notes to international lending organizations, and District of Columbia
stadium bonds.
1.41
GROSS PUBLIC DEBT OF U.S. TREASURY
SOURCES. Treasury Bulletin
United
States.
and Monthly
Statement
of the Public Debt of the
Types and Ownership
Billions of dollars, end of period
1986
Type and holder
1983
1984
1985
Q2
1 Total gross public debt
Bv txpe
i Interest-bearing debt
3 Marketable
Bills
4
5
Notes
Bonds
6
1
7 Nonmarketable
State and local government series
8
9
Foreign issuesGovernment
10
11
Public
1?
Savings bonds and notes
Government account series'
13
14 Non-interest-bearing debt
Bv holder4
IS U.S. government agencies and trust funds
16 Federal Reserve Banks
17 Private investors
Commercial banks
18
Money market funds
19
Insurance companies
70
Other companies
71
~>~t State and local governments
Individuals
23
Savings bonds
Other securities
74
75
Foreign and international 5
Other miscellaneous investors 6
26
Q4
Q3
Ql
1,410.7
1,663.0
1,945.9
2,214.8
2,059.3
2,125.3
2,214.8
2,246.7
1,400.9
1.050.9
343.8
573.4
133.7
350.0
36.7
10.4
10.4
.0
70.7
231.9
1.660.6
1,247.4
374.4
705.1
167.9
44.4
9.1
9.1
.0
73.1
286.2
1,943.4
1,437.7
399.9
812.5
211.1
505.7
87.5
7.5
7.5
.0
78.1
332.2
2,212.0
1,619.0
426.7
927.5
249.8
593.1
110.5
4.7
4.7
.0
90.6
386.9
2,056.7
1,498.2
396.9
869.3
232.3
558.5
98.2
5.3
5.3
.0
82.3
372.3
2.122.7
1,564.3
410.7
896.9
241.7
558.4
102.4
4.1
4.1
.0
85.6
365.9
2,212.0
1,619.0
426.7
927.5
249.8
593.1
110.5
4.7
4.7
.0
90.6
386.9
2,244.0
1,635.7
406.2
955.3
259.3
608.3
118.5
4.9
4.9
.0
93.0
391.4
9.8
2.3
2.5
2.8
2.6
2.6
2.8
2.7
236.3
151.9
1,022.6
188.8
22.8
56.7
39.7
155.1
289.6
160.9
1,212.5
183.4
25.9
76.4
50.1
179.4
403.1
211.3
1,602.0
225.0
28.6
106.9
68.8
273.1
374.4
183.8
1,502.7
197.2
22.8
97.7
61.2'
239.8
382.9
190.8
1,553.3
212.5
24.9
100.9
65.7'
256.4
403.1
211.3
1,602.0
225.0
28.6
106.9
68.8
273.1
407.5
196.4
1,641.4
232.0
18.8
n.a.
72.1
n.a.
71.5
61.9
166.3
259.8
74.5
69.3
192.9
360.6
92.3
70.4'
257.0
476.2
83.8
75.7''
239.8
469.2
87.1
70.9'
256.4
474.7
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.
1987
1986
413.2
348.9
181.3
1,417.2
192.2
25.1
95.8''
59.0
235.8
79.8
75.0
214.6
439.9
92.3
70.4''
255.6
476.2
94.7
68.4
272.1
n.a.
5. Consists of investments of foreign 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, TreasuryBulletin.
Federal Finance
1.42
U.S. GOVERNMENT SECURITIES DEALERS
A31
Transactions'
Par value; averages of daily figures, in millions of dollars
1987
1987
Item
1984
1985
1986
Mar.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Immediate delivery 2
U.S. government securities
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
By type of customer
U.S. government securities
dealers
U.S. government securities
brokers
All others 3
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures transactions 4
Treasury bills
Treasury coupons
Federal agency securities
Forward transactions 5
U.S. government securities
Federal agency securities
May
Apr. 22
Apr. 29
May 6
May 13
May 20
May 27
52,778
75,331
95,447
102,209
138,007
116,376
142,263
135,360
111,829
117,762
121,141
117,483
26,035
1,305
11,733
7,606
6,099
32,900
1,811
18,361
12,703
9,556
34,249
2,115
24,667
20,455
13,961
37,027
2,647
24,322
22,444
15,769
50,528
3,190
29,094
31,476
23,718
36,913
3,084
30,979
22,716
22,684
52,915
3,262
30,550
30,883
24,652
45,951
3,485
29,460
32,297
24,167
38,268
2,720
28,390
22,563
19,888
34,077
3,628
27,572
22,776
29,709
39,326
3,081
35,876
20,788
22,071
37,347
3,055
33,065
23,522
20,495
2,919
3,336
3,646
3,506
3,113
2,801
2,678
3,134
3,018
3,128
2,939
2,007
25,580
24,278
7,846
4,947
3,243
10,018
36,222
35,773
11,640
4,016
3,242
12,717
49,368
42,218
16,746
4,355
3,272
16,660
52,671
45,446
20,984
3,570
2,917
15,489
78,533
55,648
22,184
4,964
3,453
17,914
63,089
49,808
19,694
3,880
2,762
18,375
80,973
58,611
28,811
5,344
3,605
21,206
79,222
53,004
17,516
4,553
3,166
18,625
63,279
45,532
17,748
3,608
2,478
19,487
66,294
48,340
15,630
3,320
2,534
15,436
65,532
52,668
22,630
3,832
2,999
19,638
61,457
54,018
24,729
4,733
3,040
18,606
6,947
4,533
264
5,561
6,085
252
3,311
7,175
16
3,577
6,891
9
3,575
12,018
1
4,128
10,374
6
4,240
11,497
0
3,092
13,109
0
4,137
11,404
0
4,000
9,696
0
3,891
11,733
0
5,406
9,579
13
1,364
2,843
1,283
3,857
1,876
7,830
1,952
10,656
2,760
15,961
2,840
11,951
4,591
20,145
2,476
11,921
4,267
9,364
2,672
10,960
2,272
16,074
2,534
14,021
1. Transactions are market purchases and sales of securities as reported to the
Federal Reserve Bank of N e w York by the U.S. government securities dealers on
its published list of primary dealers.
Averages for transactions are based on the number of trading days in the period.
The figures exclude allotments of, and exchanges for, new U.S. government
securities, redemptions of called or matured securities, purchases or sales of
securities under repurchase agreement, reverse repurchase (resale), or similar
contracts.
2. Data for immediate transactions do not include forward transactions.
3. Includes, among others, all other dealers and brokers in commodities and
Apr.
securities, nondealer departments of commercial banks, foreign banking agencies,
and the Federal Reserve System.
4. Futures contracts are standardized agreements arranged on an organized
exchange in which parties commit to purchase or sell securities for delivery at a
future date.
5. Forward transactions are agreements arranged in the over-the-counter
market in which securities are purchased (sold) for delivery after 5 business days
from the date of the transaction for government securities (Treasury bills, notes,
and bonds) or after 30 days for mortgage-backed agency issues.
NOTE. Data for the period May 1 to Sept. 30, 1986, are partially estimated.
A44
1.43
DomesticNonfinancialStatistics • August 1987
U.S. G O V E R N M E N T SECURITIES DEALERS
P o s i t i o n s and F i n a n c i n g '
Averages of daily figures, in millions of dollars
1987
iyo4
1987
1 Vo.
Mar.
Apr/
May
Apr. 29
May 6
May 15
May 20
May 27
Positions
1
•
>
3
4
5
6
7
8
9
10
11
12
13
14
15
Net immediate 2
U.S. government securities
Bills
Other within 1 year
1-5 years
5 - 1 0 years
Over 10 years
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures positions
Treasury bills
Treasury coupons
Federal agency securities
Forward positions
U.S. government securities
Federal agency securities
5,429
5.500
63
2,159
-1,119
-1,174
15,294
7,369
3,874
3,788
7.391
10,075
1,050
5,154
-6,202
-2,686
22,860
9,192
4,586
5,570
13,055'
12.723
3,699'
9.297
-9,504'
-3.161'
33.066'
10.533
5.535'
8.087
7,840
7,070
3,513
7,451
-5,208
-4.986
33,296
8,615
5.015
8,954
-6,965
-779
3,076
2,519
-5,944
-5,836
32.863
8.502
3.694
6.258
-13,454
-5,937
3.530
1,074
-7,644
-4,477
32,766
8.990
3,714
6,591
-16,831'
-6,448
2,794'
2,224
-8,803'
-6,599'
31,430'
8,818
3,154
6,449'
-19,068
-8,007
3.643
-40
-8,908
-5,756
30,648
8,836
3,089
6,762
-11,852
-5,110
3,340
1,427
-6,935
-4,574
32,498
8,972
4,181
6,550
-14.035
-6.170
3,681
-378
-6,965
-4,202
35.362
8.922
4,019
6,713
-11,021
-6.010
3,486
3,486
-8,549
-3,434
32,660
9,153
3,503
6,279
-4,525
1,794
233
-7,322
4.465
-722
-18.062
3.489'
-153
-10,805
4,313
-98
-5,004
3.936
-95
1,789
2,612
-98
-3.465'
3,586
-96
-880
3,530
-98
1,310
2,553
-98
2.285
2.544
-98
3,716
2,211
-98
-1,643
-9,205
-911
-9,420
-2,304
-11,909'
-2.151
-16,703
-2,386
-15.767
-4.305
-20,297
-2,996
-15,369'
-3,784
-17,688
-3,939
-20,669
-5,607
-22,650
-4,789
-20,181
Financing 3
Reverse repurchase agreements 4
Overnight and continuing
Term agreements
Repurchase agreements 5
18
Overnight and continuing
19
Term agreements
16
17
44,078
68,357
68,035
80,509
98.954
108,693
127,183
130,489
129,443
133,833
n.a.
n.a.
125,916
149,607
122,241
148,645
116,064
154,191
120,745
152,715
124,737
150,494
75.717
57,047
101,410
70,076
141.735
102,640
177,021
112,078
176.340
108,841
n.a.
n.a.
170,842
122,608
162,337
119,105
154,942
131,012
167,444
124,198
173,210
124,105
1. Data for dealer positions and sources of financing are obtained from reports
submitted to the Federal Reserve Bank of N e w York by the U.S. government
securities dealers on its published list of primary dealers.
Data for positions are averages of daily figures, in terms of par value, based on
the number of trading days in the period. Positions are net amounts and are shown
on a commitment basis. Data for financing are in terms of actual amounts
borrowed or lent and are based on Wednesday figures.
2. Immediate positions are net amounts (in terms of par values) of securities
owned by nonbank dealer firms and dealer departments of commercial banks on a
commitment, that is, trade-date basis, including any such securities that have
been sold under agreements to repurchase (RPs). The maturities of some
repurchase agreements are sufficiently long, however, to suggest that the securities involved are not available for trading purposes. Immediate positions include
reverses to maturity, which are securities that were sold after having been
obtained under reverse repurchase agreements that mature on the same day as the
securities. Data for immediate positions do not include forward positions.
3. Figures cover financing involving U.S. government and federal agency
securities, negotiable CDs, bankers acceptances, and commercial paper.
4. Includes all reverse repurchase agreements, including those that have been
arranged to make delivery on short sales and those for which the securities
obtained have been used as collateral on borrowings, that is, matched agreements.
5. Includes both repurchase agreements undertaken to finance positions and
" m a t c h e d b o o k " repurchase agreements.
NOTE. Data on positions for the period May 1 to Sept. 30, 1986, are partially
estimated.
Federal Finance
1.44
FEDERAL A N D FEDERALLY SPONSORED CREDIT AGENCIES
A33
Debt Outstanding
Millions of dollars, end of period
1987
1986
1983
Agency
1984
1985
Nov.
Dec.
Jan.
Feb.
Mar.
10 Federally sponsored agencies 7
11
Federal Home Loan Banks
Federal Home Loan Mortgage Corporation
17
13
Federal National Mortgage Association
Farm Credit Banks
14
Student Loan Marketing Association
15
240,068
271,220
293,905
305,097
307,361
305,114
305,603
33,940
243
14,853
194
35,145
142
15,882
133
36,390
71
15,678
115
36,952
35
14,274
124
36,958
33
14,211
138
37.041
32
14.211
136
37,073'
27
14,211
147
36,660
24
13,813
158
2,165
1,404
14,970
111
2,165
1,337
15,435
51
2,165
1,940
16,347
74
2,165
3,104
17,176
74
2,165
3,104
17,222
85
2.165
3,104
17,308
85
2,165
3,104
17,334'
85
2,165
3,104
17,311
85
206,128
48,930
6,793
74,594
72,816
3,402
236,075
65,085
10,270
83,720
71,193
5,745
257,515
74,447
11,926
93.896
68.851
8,395
268,145
86,891
13,606
93,477
62,693
11,478
270,403
88,752
13,589
93,563
62,328
12,171
268,073
90,225
13,492
92,588
59,984
11,784
268,530
91,313
13,847
91,522
59,367
12.481
n.a.
92,087
n.a.
91,618
58,364
13,230
135,791
1 Federal and federally sponsored agencies
2 Federal agencies
Defense Department 1
Export-Import Bank 2 3
Federal Housing Administration 4
6
Government National Mortgage Association participation
certificates
7
Postal Service 6
8
Tennessee Valley Authority
United States Railway Association 6
9
145,217
153,373
157,452
157,510
157,650
157,724
157,012
14,789
1,154
5.000
13.245
111
15,852
1,087
5,000
13,710
51
15,670
1,690
5,000
14,622
74
14,268
2,854
4.970
15,751
74
14,205
2,854
4,970
15,797
85
14,205'
2,854
4,970
15,928
85
14,205
2,854
4,970
15,954
85
13,807
2,854
4,970
15,931
85
55,266
19,766
26,460
58,971
20,693
29.853
64,234
20,654
31,429
65,374
21,531
32,630
65,374
21,680
32,545
65,374
21,719
32,515
65,374
21,749
32,533
Apr.
n.a.
65,224
21,473
32,668
n a.
94,606
n. a.
89,741
57,251
n.a.
MEMO
16 Federal Financing Bank debt"
Lending
17
18
19
20
21
to federal and federally
sponsored
Export-Import Bank
Postal Service 6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association 6
Other
Lending10
Farmers Home Administration
23 Rural Electrification Administration
24 Other
2?
1. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1,1976.
3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
5. Certificates of participation issued before fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing
and Urban Development; Small Business Administration; and the Veterans
Administration.
6. Off-budget.
n. a.
7. Includes outstanding noncontingent liabilities: Notes, bonds, and debentures. Some data are estimated.
8. Before late 1981, the Association obtained financing through the Federal
Financing Bank.
9. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since F F B
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.
A44
1.45
DomesticNonfinancialStatistics • August 1987
N E W S E C U R I T Y I S S U E S T a x - E x e m p t S t a t e and L o c a l G o v e r n m e n t s
Millions of dollars
1986'
Type of issue or issuer,
or use
1984
1985
1987
1986
Oct.
1 All issues, new and refunding 1
Nov.
Dec.
Jan.'
Feb/
Mar.'
Apr.'
May
106,641
214.189
134,606
9.524
11,010
15,662
7,343
8,969
14,591
6,854
5,453
Tvpe of issue
2 General obligation
3 Revenue
26,485
80.156
52,622
161,567
44,80/
89,806
2,390
7.134
1,607
9.403
4,426
11,236
1,100
6,243
3,643
5,325
3,853
10,738
3,449
3,405
2,713
2,740
Tvpe of issuer
4 State
3 Special district and statutory authority 2
6 Municipalities, counties, townships
9,129
63,550
33,962
13,004
134,363
66,822
14,935
79,291
40,374
127
6.265
2,562
6
8,124
2,759
961
10,431
4,265
153
5,275
1,915
1,364
5,825
1,781
1,217
10,004
3,370
427
4,790
1,637
978
2,530
1,946
7 Issues for new capital, total
94,050
156,050
79,195
3,319
4.220
10,050
1,930
2,774
4,480
3,237
3,944
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
7,553
7,552
17,844
29,928
15,415
15,758
16,658
12,070
26,852
63,181
12,892
24,398
16,948
11,666
35,383
17,332
5,594
47,433
530
661
336
1.175
184
772
566
843
671
2.931
483
483
925
356
1,165
3.944
2,845
1,829
452
92
681
380
38
286
448
145
482
527
89
1,084
659
111
444
991
368
1,907
774
98
571
468
33
1,295
643
109
591
376
47
2,178
8
9
10
11
12
13
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts beginning April 1986.
SOURCES. Securities Data Company beginning April 1986. Public Securities
Association for earlier data. This new data source began with the N o v e m b e r
BULLETIN.
1.46
N E W S E C U R I T Y I S S U E S Corporations
Millions of dollars
Type of issue or issuer,
or use
1986
1984
1985
1987
1986
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.'
Apr.
1 All issues1
132,531
201,269'
375,056'
16,093
28,577'
28,822'
25,168'
23,165'
24,053'
33,089
21,703
2 Bonds 2
109,903
165,754'
313,226'
12,830
23,471'
22,223'
18,920'
20,25C
20,286'
23,279
17,527
73,579
36,324
119,559
46,195
232,465'
80,761
12,829
n.a.
23,471'
n.a.
22,22V
n.a.
18,920'
n.a.
20,250'
n.a.
20,286'
n.a.
23,279
n.a.
17,527
n.a.
24,607
13,726
4,694
10,679
2,997
53,199
52,128
15,140
5,743
12.957
10,456
69,332
78,584'
37.277'
9,734'
31,058'
15,489'
141,086'
2,345
1,387
375
1.915
417
6,390
2.055
1.067
170
2.537
1,255
16,387'
3,378
1,213
0
2,587
1,158
13,888'
3.786'
2,067
70
2,498
776
9,723'
4,165
1,074
0
1,491
65
13,455'
3,679
1,714
100
2,715
250
11,829'
6,349
3,723
521
694
300
11,693
2,184
1,308
168
1,360
100
12,407
II Stocks
22,628
35,515
61,830
3,263
5,106
6,599
6,248
2,915
3,767
9,810
4,176
Tvpe
12 Preferred
13 Common
4,118
18,510
6,505
29,010
11,514
50,316
402
2,861
817
4.289
1,390
5,209
1,293
4,955
429
2,486
905
2,862
2,257
7,553
530
3,646
4,054
6.277
589
1,624
419
9,665
5,700
9,149
1,544
1,966
978
16,178
14,234
9,252
2,392
3,791
1,504
30,657
250
1,009
28
174
0
1.802
570
1,271
511
410
59
2.285
2,565
535
15
218
104
3,162
1,781
709
183
873
101
2,601
365
148
0
237
16
2,149
814
437
191
509
9
1,807
2,016
2,366
299
907
57
4,165
770
2,163
216
189
18
820
Type of offering
3 Public
4 Private placement'
3
6
/
8
9
10
14
15
16
IV
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. Data are not available on a monthly basis.
SOURCES. 1DD Information Services, Inc., U.S. 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
N e t S a l e s and A s s e t P o s i t i o n
Millions of dollars
1987
1986
1985
Item
1986
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar/
Apr.
INVESTMENT COMPANIES'
1
2
3
Sales of own shares 2 . :
Redemptions of own shares 3
Net sales
222,670
132,440
90,230
411,739
239,396
172,343
34,690
21,338
13,352
37,150
20,782
16,368
33,672
20,724
12,948
44,796
34,835
9,961
50,116
26,565
23,551
36,307
21,576
14,731
40,378
24,730
15,648
42,773
37,127
5,646
4
5
6
Assets 4
Cash position 5
Other
251,695
20,607
231,088
424,156
30,716
393,440
381,872
29,540
352,332
402,644
30,826
371,818
416,939
29,579
387,360
424,156
30,716
393,440
464,415
34,098
430,317
490,643
35,279
455,364
506,752
37,090
469,662
499,086
45,031
454,055
5. Also includes all U.S. government securities and other s h o r t - t e r m debt
securities.
1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment of capital gains distributions and share issue of conversions from one fund to
another in the same group.
3. Excludes share redemption resulting from conversions from one fund to
another in the same group.
4. Market value at end of period, less current liabilities.
1.48
NOTE. Investment Company Institute data based on reports of members, which
comprise substantially all o p e n - e n d investment companies registered with the
Securities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.
CORPORATE PROFITS A N D THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1985
Account
1984
1985
1987
1986
1986
Q2
1 Corporate profits with inventory valuation and
capital consumption adjustment
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
?
3
4
5
6
7
8
Inventory valuation
Capital consumption adjustment
SOURCE. Survey of Current Business
Q3
Q4
Q1
Q2
Q3
Q4
QK
264.7
235.7
95.4
140.3
78.3
62.0
280.6
223.1
91.8
131.4
81.6
49.8
300.7
237.5
103.5
134.0
87.8
46.2
274.3
213.8
87.1
126.7
81.4
45.3
296.3
229.2
95.8
133.4
81.6
51.8
285.6
235.8
96.4
139.4
82.5
57.0
296.4
222.5
95.7
126.9
85.2
41.7
293.1
227.7
99.0
128.8
87.5
41.2
302.0
240.4
104.4
135.9
88.8
47.2
311.2
259.6
115.1
144.5
89.7
54.8
335.4
267.6
128.8
138.8
91.4
47.4
-5.5
34.5
-.6
58.1
6.5
56.6
1.6
58.9
6.1
61.0
-9.4
59.2
16.5
57.3
10.6
54.8
6.1
55.5
-7.2
58.8
-6.9
74.7
(Department of Commerce).
A44
1.49
DomesticNonfinancialStatistics • August 1987
N O N F I N A N C I A L CORPORATIONS
A s s e t s and Liabilities'
Billions of dollars, except for ratio
1985
Account
1980
1981
1982
1983
1986
1984
Q1
Q2
Q3
Q4
Q1
1
Current assets
1,328.3
1,419.6
1,437.1
1,575.9
1,703.0
1,722.7
1,734.6
1,763.0
1,784.6
1,795.7
2
3
4
5
6
Cash
U.S. government securities
Notes and accounts receivable
Inventories
Other
127.0
18.7
507.5
543.0
132.1
135.6
17.7
532.5
584.0
149.7
147.8
23.0
517.4
579.0
169.8
171.8
31.0
583.0
603.4
186.7
173.6
36.2
633.1
656.9
203.2
167.5
35.7
650.3
665.7
203.5
167.1
35.4
654.1
666.7
211.2
176.3
32.6
661.0
675.0
218.0
189.2
33.0
671.5
666.0
224.9
195.3
31.0
663.4
679.6
226.3
7
Current liabilities
890.6
971.3
986.0
1,059.6
1,163.6
1,174.1
1,182.9
1,211.9
1,233.6
1,222.3
8
9
Notes and accounts payable
Other
514.4
376.2
547.1
424.1
550.7
435.3
595.7
463.9
647.8
515.8
636.9
537.1
651.7
531.2
670.4
541.5
682.7
550.9
668.4
553.9
10
Net working capital
437.8
448.3
451.1
516.3
539.5
548.6
551.7
551.1
551.0
573.4
11
MEMO: Current ratio 2
1.492
1.462
1.458
1.487
1.464
1.467
1.466
1.455
1.447
1.469
1. For a description of this series, see "Working Capital of Nonfinancial
C o r p o r a t i o n s " in the July 1978 BULLETIN, pp. 533-37. Data are not currently
available after 1986:1.
1.50
2. Ratio of total current assets to total current liabilities.
SOURCE. Federal Trade Commission and Bureau of the Census,
T O T A L N O N F A R M B U S I N E S S E X P E N D I T U R E S o n N e w Plant and E q u i p m e n t A
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1985
Industry
1985
1986
1986
Q4
1 Total nonfarm business
Manufacturing
i Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
Railroad
s
6
Air
7
Other
Public utilities
8
Electric
9
Gas and other
10 Commercial and other 2
387.13
379.27 r
73.27
80.21
Q1
Q2
Q3
Q4
Ql
Q2>
Q3>
390.89
397.88
377.94
375.92
374.55
388.69
372.24
392.02
397.06
69.08
73.65
70.86
75.05
75.47
82.79
68.01
76.02
68.33
73.35
69.31
69.89
70.68
75.33
69.72
69.65
73.06
73.83
71.84
76.61
15.88
11.25
10.45
15.25
12.99
11.22
10.15
10.63
10.17
10.85
10.60
7.08
4.79
6.15
6.63
6.26
5.86
6.06
6.76
6.58
6.74
6.07
6.34
6.22
6.58
5.42
6.77
5.77
5.74
7.31
5.69
6.03
6.25
6.99
6.24
5.29
7.55
5.93
6.32
6.76
6.39
6.84
6.36
6.82
36.11
12.71
150.93
33.93
12.51
160.10
32.93
12.71
169.50
36.38
13.41
155.42
34.21
12.82
155.67
33.81
12.74
158.18
33.91
11.99
160.25
33.78
12.49
166.31
30.81
12.63
160.49
33.51
12.43
168.86
33.97
12.82
171.19
ATrade and services are no longer being reported separately. They are included
in Commercial and other, line 10.
1. Anticipated by business.
1987
1987' •'
2. " O t h e r " 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
1.51
DOMESTIC FINANCE COMPANIES
Markets
and Corporate
Finance
A37
Assets and Liabilities
Billions of dollars, end of period
1982
1983
1987
1986
1985
Account
1984
Q3
Q4
Qi
Q2
Q3
Q4
Qi
ASSETS
Accounts receivable, gross
75.3
100.4
18.7
194.3
83.3
113.4
20.5
217.3
89.9
137.8
23.8
251.5
108.6
143.7
26.3
278.6
113.4
158.3
28.9
300.6
117.2
165.9
29.9
312.9
125.1
167.7
30.8
323.6
137.1
161.0
32.1
330.2
136.5
174.8
33.7
345.0
133.9
182.8
35.1
351.8
5
6
29.9
3.3
30.3
3.7
33.8
4.2
38.0
4.6
39.2
4.9
40.0
5.0
40.7
5.1
42.4
5.4
41.4
5.8
40.4
5.9
7
X
161.1
30.4
183.2
34.4
213.5
35.7
236.0
46.3
256.5
45.3
268.0
48.8
277.8
48.8
282.4
59.9
297.8
57.9
305.5
59.0
191.5
217.6
249.2
282.3
301.9
316.8
326.6
342.3
355.6
364.5
16.5
51.4
18.3
60.5
20.0
73.1
18.9
93.2
20.6
99.2
19.0
104.3
19.2
108.4
20.2
112.8
ji i
117.8
17.3
119.1
12
13
14
15
11.9
63.7
21.6
26.4
11.1
67.7
31.2
28.9
12.9
77.2
34.5
31.5
12.4
85.5
38.2
34.1
12.5
93.1
40.9
35.7
13.4
101.0
42.3
36.7
15.4
105.2
40.1
38.4
16.0
109.8
44.1
39.4
17.2
115.6
43.4
39.4
21.6
118.4
46.3
41.8
16
191.5
217.6
249.2
282.3
301.9
316.8
326.6
342.3
355.6
364.5
1
1
3
4
Total
Less:
9
LIABILITIES
10
11
Debt
NOTE. Components may not add to totals because of rounding.
1.52
DOMESTIC FINANCE COMPANIES
Business Credit
Millions of dollars, seasonally adjusted except as noted
Type
Accounts
receivable
outstanding
Apr. 30,
19871
Changes in accounts
receivable
Extensions
Repayments
1987
1987
1987
Feb.
3
4
5
6
7
8
9
10
Apr.
Feb.
Mar.
Apr.
Feb.
Mar.
Apr.
185,182
1
i
Mar.
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
1,850
1,579
3,534
28,193
29,836
29,212
26,342
28,257
25,678
27,520
22,327
602
-429
570
-40
750
4
1,036
1.067
1.138
1,255
1,200
1,352
434
1,496
568
1.295
449
1.349
30,075
5,365
8,846
-1.081
31
-41
995
-235
269
620
76
-25
11.573
658
2,919
12.676
672
3.064
11,474
690
3,056
10.492
626
2,960
11,681
907
2,795
10.854
614
3.082
20,507
39,639
161
121
77
440
515
582
1,259
885
1.148
995
1,136
970
1.099
764
1.071
555
622
388
16,741
14,162
238
86
-652
155
723
290
7,619
1,177
7.664
1.224
8,122
1,211
7.381
1.092
8.316
1,069
7,399
921
These data also appear in the Board's G.20 (422) release. For address, see
inside front cover.
1. Not seasonally adjusted,
A.38
1.53
Domestic Financial Statistics • August 1987
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1986
1987
tyoo
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
Terms and yields in primary and secondary markets
PRIMARY M A R K E T S
1
2
3
4
5
6
Conventional mortgages on new homes
Terms1
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan/price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)Contract rate (percent per annum)
Yield (percent per
7 F H L B B series'
8 H U D series 4
96.8
73.7
78.7
27.8
2.64
11.87
104.1
77.4
77.1
26.9
2.53
11.12
118.1
86.2
75.2
26.6
2.48
9.82
124.2
92.5
76.2
27.3
2.64
9.45
124.8
93.2
76.4
27.4
2.46
9.28
132.6
97.3
75.5
27.7
2.23
9.14
135.6
99.1
75.3
27.6
2.21
8.87
130.2
95.0
74.3
27.1
2.20
8.77
136.9'
100.9'
75.2'
27.1'
2.23'
8.84'
133.7
100.0
76.2
28.2
2.34
9.07
12.37
13.80
11.58
12.28
10.25
10.07
9.91
9.47
9.69
9.33
9.51
9.09
9.23
9.04
9.14
9.19
9.21'
10.11
9.46
n.a.
13.81
13.13
12.24
11.61
9.91
9.30
9.26
8.83
9.21
8.62
8.79
8.46
8.81
8.28
8.94
8.18
10.02
8.85
n.a.
9.40
annum)
S E C O N D A R Y MARKETS
Yield (percent per annum)
9 F H A mortgages ( H U D series) 5
10 G N M A securities 6
Activity in secondary markets
F E D E R A L N A T I O N A L MORTGAGE ASSOCIATION
Mortgage holdings (end of
11 Total
12
FHA/VA-insured
13
Conventional
Mortgage transactions
14 Purchases
period)
83.339
35.148
48.191
98,048
29.683
68,365
98,210
24,300
73.910
97,895
23,121
74,774
96,382
22,178
74,204
95,514
22,063
73.451
95,140
21,843
73,297
94.404
21,765
72,639
94,064
21,999
72,065
16.721
21,510
30,826
2,549
2,336
1,346
979
1,435
2,118
1,718
21,007
6,384
20,155
3.402
32,987
3,386
1,811
4,625
1,272
3,386
948
2,258
912
2,175
2,805
3,539
3,208
4,421
1,726
4,410
9,283
910
8.373
12.399
841
11,558
13,517
746
12.837
12,315
707
11.607
11,564
694
10,870
10,964
686
10,279
11,363
686
10,677
21,886
18,506
(during
94.574
34,244
60,331
44,012
38,905
103.474
100,236
9.862
10,510
11,305
11,169
7,950
8,269
7,961
7,840
n a.
n a.
n.a.
32,603
48.989
110,855
11,233
8,742
7,685
9,197
period)
Mortgage
commitments7
15 Contracted (during period)
16 Outstanding (end of period)
F E D E R A L H O M E L O A N MORTGAGE CORPORATION
Mortgage holdings
17 Total
18
FHA/VA
19
Conventional
(end of
Mortgage transactions
20 Purchases
21 Sales
period)8
(during
period)
9
Mortgage
commitments
22 Contracted (during 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 " p o i n t s " paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages; from Department of Housing and Urban Development.
5. Average gross yields on 30-year, minimum-downpayment. Federal Housing
Administration-insured first mortgages for immediate delivery in the private
secondary market. Based on transactions on first day of subsequent month. Large
monthly movements in average yields may reflect market adjustments to changes
in maximum permissable contract rates.
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 F H A / V A 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 I- to 4-family loan commitments accepted in F N M A ' s free market
auction system, and through the F N M A - G N M A tandem plans.
8. Includes participation as well as whole loans.
9. Includes conventional and government-underwritten loans. F H L M C ' s mortgage commitments and mortgage transactions include activity under mortgage/
securities swap programs, while the corresponding data for F N M A exclude swap
activity.
Real Estate
1.54
A39
MORTGAGE DEBT OUTSTANDING1
Millions of dollars, end of period
1987
1986
Type of holder, and type of property
1984
1985
1986
Ql
Q2
Q3
Q4
Qi
2,033,654
2,266,923
2,566,386 r
2,315,962
2,383,989
2,469,796'
2,566,386'
2,625,342'
1,317,940
185,414
418,300
112,000
1,466,773
213,816
480,719
105,615
1,667,055'
246,925'
554,733'
97,673'
1,494,603
221,587
495.879
103,893
1,543,681
229,145
509,574
101,589
1,607,113'
237,410'
525,122'
100,151'
1,667,055'
246,925'
554,733'
97,673'
1,711,106'
250,254'
567,980'
96.002'
1,269.702
379,498
196,163
20.264
152,894
10,177
154,441
107,302
19,817
27,291
31
1,390,394
429,196
213,434
23,373
181,032
11,357
177,263
121,879
23.329
31,973
82
1,508,599'
502,534'
235,814'
31,173'
222,799'
12,748'
226.409'
156,236'
30,476'
39,592'
105'
1,408,665
441,096
216,290
25,389
187,620
11,797
188,154
131,381
23,980
32,707
86
1,435,437
456,163
221,640
26,799
195,484
12,240
203.398
142,174
26,543
34,577
104
1,464,213'
474,658'
228,593'
28,623'
204,996'
12,446'
215,036
149,786
28,400
36,762
88
1,508,599'
502,534'
235,814'
31,173'
222,799'
12,748'
226,409'
156,236'
30,476'
39,592'
105'
1,525,130'
518,998'
241,871'
31,869'
232,000'
13,258'
227,087'
156,683'
30,574'
39,725'
105'
555,277
421,489
55,750
77,605
433
156,699
14,120
18.938
111,175
12,466
23,787
583,236
432,422
66,410
83,798
606
171,797
12,381
19,894
127,670
11,852
28,902
553,080
403,611
66,898
82,070
501
192,975
12,763
20,847
148,367
10,998
33,601
574,732
420,073
67,140
86,860
659
174,823
12,605
20,009
130,569
11,640
29,860
565,037
413,865
66,020
84,618
534
180,041
12,608
20,181
135,924
11,328
30,798
557,139
408,152
65,827
82,644
516
185,269
12.927
20,709
140,213
11,420
32,111
553,080
403,611
66,898
82,070
501
192,975
12,763
20,847
148,367
10,998
33,601
547,383'
399,042'
66,781'
81,122'
438'
196,575
12,763
20,997
151,867
10,948
35,087'
158,993
2,301
585
1.716
1,276
213
119
497
447
166,928
1,473
539
934
733
183
113
159
278
203,800
889
47
842
48,421
21,625
7,608
8,446
10,742
165,041
1,533
527
1,006
704
217
33
217
237
161,398
876
49
827
570
146
66
111
247
159,505
887
48
839
457
132
57
115
153
203,800
889
47
842
48,421
21,625
7,608
8,446
10,742
198,728'
846
46
800
48,203'
21,390'
7,710'
8,463'
10,64c
4,816
2,048
2,768
87,940
82,175
5.765
52,261
3,074
49,187
10,399
9,654
745
4,920
2,254
2,666
98.282
91,966
6,316
47.498
2.798
44,700
14,022
11,881
2,141
5,047
2,386
2,661
97,895
90.718
7,177
39,984
2,353
37,631
11.564
10,010
1.554
4,964
2,309
2,655
98,795
92.315
6,480
45,422
2,673
42,749
13,623
12,231
1,392
5,094
2,449
2,645
97,295
90.460
6,835
43,369
2.552
40,817
14,194
11,890
2,304
4,966
2,331
2,635
97,717
90,508
7,209
42,119
2,478
39,641
13,359
11,127
2,232
5,047
2,386
2,661
97,895
90,718
7,177
39,984
2,353
37,631
11,564
10,010
1,554
5,091
2,440
2,651
95,140
88,126
7,014
38,684
2,276
36,408
10,764
9,610
1,154
49 Mortgage pools or trusts 5
Government National Mortgage Association
50
51
1- to 4-family
52
Multifamily
S3
Federal Home Loan Mortgage Corporation
54
1- to 4-family
55
Multifamily
56
Federal National Mortgage Association
57
1- to 4-family
58
Multifamily
59
Farmers Home Administration 4
60
1- to 4-family
61
Multifamily
62
Commercial
Farm
63
332,057
179,981
175,589
4,392
70,822
70,253
569
36,215
35,965
250
45,039
21,813
5,841
7,559
9,826
415,042
212.145
207,198
4.947
100,387
99,515
872
54,987
54,036
951
47,523
22,186
6,675
8,190
10.472
529,763
260,869
255,132
5,737
171.372
166,667
4,705
97,174
95,791
1,383
348
142
n.a.
132
74
440,701
220,348
215,148
5,200
110,337
108.020
2,317
62,310
61,117
1,193
47,706
22,082
6,943
8,150
10,531
475,615
229,204
223,838
5,366
125,903
123,676
2,227
72,377
71,153
1,224
48,131
21,987
7,170
8,347
10.627
522,721
241,230
235,664
5,566
146,871
143,734
3,137
86,359
85,171
1,188
48.261
21.782
7,353
8,409
10,717
529,763
260,869
255,132
5,737
171,372
166,667
4,705
97,174
95,791
1,383
348
142
n.a.
132
74
573,372'
277,386'
271,065'
6,321'
187,962
182,857
5,105
107.673
106,068
1,605
351'
154'
n.a.
127
70
64 Individuals and others 6
65
1- to 4-family
66
Multifamily
Commercial
67
Farm
68
272,902
153,710
48,480
41,279
29,433
294,559
165,199
55,195
47,897
26,268
324,224
180.159
65,864
53,327
24,874
301.555
167,755
57,850
49,756
26,194
311,539
174,396
60,938
50,513
25,692
323,357
182,569
63,635
51,983
25,170
324,224
180,159
65,864
53.327
24,874
328,112
181,628
67,673
54,676
24,135
1 All holders
2
3
4
5
1- to 4-family
Multifamily
Commercial
Farm
6 Selected financial institutions
7
Commercial banks 2
8
1- to 4-family
9
Multifamily
10
Commercial
II
Farm
Savings banks
12
13
1- to 4-family
14
Multifamily
Commercial
IS
16
Farm
17
18
19
20
21
22
23
24
26
27
Savings and loan associations
1- to 4-family
Multifamily
Commercial
Farm
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
Finance companies'
28 Federal and related agencies
29
Government National Mortgage Association
30
1- to 4-family
31
Multifamily
Farmers Home Administration 4
32
33
I- to 4-family
34
Multifamily
35
Commercial
36
Farm
37
38
39
40
41
42
43
44
45
46
47
48
Federal Housing and Veterans
Administration
1- to 4-family
Multifamily
Federal National Mortgage Association
1- to 4-family
Multifamily
Federal Land Banks
1- to 4-family
Farm
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
1. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve. Multifamily debt refers to
loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not bank trust
departments.
3. Assumed to be entirely 1- to 4-family loans.
4. FmHA-guaranteed securities sold to the Federal Financing Bank were
reallocated from FmHA mortgage pools to F m H A mortgage holdings in 1986: 4,
because of accounting changes by the Farmers Home Administration.
5. Outstanding principal balances of mortgage pools backing securities insured
or guaranteed by the agency indicated.
6. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured
pension funds, credit unions, and other U.S. agencies.
A44
1.55
DomesticNonfinancialStatistics • August 1987
C O N S U M E R I N S T A L L M E N T C R E D I T 1 Total O u t s t a n d i n g , and N e t C h a n g e , s e a s o n a l l y a d j u s t e d
Millions of dollars
1986
1987
1985
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.'
Apr.
Amounts outstanding (end of period)
1 Total
522,805
577,784
563,660
571,280
576,874
577,656
577,784
578,578
579,591
579,913
582,840
By major holder
Commercial banks
Finance companiesCredit unions
Retailers 3
Savings institutions
Gasoline companies
242,084
113,070
72,119
38,864
52,433
4,235
261,604
136,494
77,857
40,586
58.037
3.205
257,482
129.265
75,637
40,379
57,524
3,372
258,990
135,516
76,299
40,455
56.687
3.333
260,940
138,038
76,995
40,565
57,046
3,289
262,949
136,314
77,508
40.496
57,168
3,221
261,604
136,494
77,857
40,586
58,037
3,205
261.694
135,802
78,284
40,617
58,906
3,276
262,105
136,009
78,492
40.644
59,031
3.311
261,933
136,050
78.569
40,469
59.488
3,405
263,308
137,091
78,871
40,467
59,582
3,522
By major type of credit
8 Automobile
9
Commercial banks
Credit unions
10
li
Finance companies
Savings institutions
12
208,057
93,003
35,635
70,091
9,328
245,055
100,709
39,029
93,274
12.043
231,200
96,871
37,916
84.868
11,545
239,014
98.057
38,248
91,241
11,468
243,400
99,385
38,597
93,786
11,632
243.005
100,221
38,854
92,188
11,742
245,055
100,709
39,029
93,274
12,043
245,472
101,389
39,243
92,617
12,223
246,064
101,688
39,347
92,780
12,249
246,290
101,528
39,386
93,032
12.344
247,186
101,548
39,537
93,738
12,363
13 Revolving
14
Commercial banks
15
Retailers
16
Gasoline companies
Savings institutions
17
Credit unions
18
122,021
75,866
34,695
4,235
5,705
1.520
134,938
85,652
36,240
3,205
7,713
2,128
133,180
84,545
36.028
3,372
7,325
1,910
133,123
84,430
36,086
3,333
7.308
1,966
133.816
84,868
36,190
3,289
7,445
2.024
134,391
85,426
36.137
3,221
7,529
2,078
134.938
85,652
36,240
3.205
7,713
2,128
134,916
85,395
36,277
3,276
7,829
2.139
135,663
86,053
36,308
3,311
7,845
2,145
135,166
85,567
36,141
3,405
7,906
2,147
136,598
86,863
36,139
3,522
7,918
2.156
19 Mobile home
20
Commercial banks
21
Finance companies
22
Savings institutions
25,488
9,538
9.391
6,559
25,710
8,812
9.028
7,870
25.939
9.055
9,337
7,547
25,732
9.016
9,216
7.500
25,784
9,025
9,149
7,610
25.731
8,951
9.091
7,689
25,710
8,812
9,028
7,870
25,852
8,787
9,077
7,988
25,789
8,739
9,045
8,005
25,614
8,725
8,823
8,067
25,611
8,716
8,816
8,079
23 Other
24
Commercial banks
is
Finance companies
Credit unions
26
Retailers
11
28
Savings institutions
167,239
63.677
33,588
34,964
4,169
30,841
172,081
66,431
34,192
36,700
4,346
30,412
173,341
67,011
35,061
35.811
4,351
31.107
173,411
67,487
35,059
36,085
4,369
30,411
173,874
67,662
35.104
36.374
4,375
30.359
174,529
68,351
35,035
36,576
4,359
30,208
172,081
66,431
34,192
36,700
4,346
30.412
172,338
66,122
34,108
36.901
4,340
30,867
172,076
65,625
34,183
36,999
4,336
30,932
172,844
66,113
34,196
37,036
4,327
31,172
173,446
66,181
34,537
37,178
4,328
31,221
2
3
4
6
7
Net change (during period)
29 Total
76,622
54,979
5,601
7,620
5,594
782
128
794
1,013
322
2,927
By major holder
Commercial banks
Finance companies 2
Credit unions
Retailers 3
Savings institutions
Gasoline companies
32,926
23,566
6,493
1,660
12,103
-126
19,520
23,424
5.738
1,722
5,604
-1,030
1.738
1,885
772
221
1,024
-39
1,508
6,251
662
76
-837
-39
1,950
2,522
696
110
359
-44
2,009
-1,724
513
-69
122
-68
-1,345
180
349
90
869
-16
90
-692
427
31
869
71
411
207
208
27
125
35
-172
41
77
-175
457
94
1.375
1.041
302
-2
94
117
By major type of credit
36 Automobile
37
Commercial banks
Credit unions
38
39
Finance companies
Savings institutions
40
35,705
9,103
5,330
17,840
3,432
36,998
7,706
3,394
23,183
2.715
3,378
899
387
1.802
290
7,814
1,186
332
6,373
-77
4,386
1,328
349
2,545
164
-395
836
257
-1,598
110
2.050
488
175
1,086
301
417
680
214
-657
180
592
299
104
163
26
226
-160
39
252
95
896
20
151
706
19
41 Revolving
42
Commercial banks
Retailers
43
44
Gasoline companies
45
Savings institutions
Credit unions
46
22,401
17,721
1,488
-126
2,771
547
12,917
9,786
1,545
-1,030
2,008
608
999
558
201
-39
220
59
-57
-115
58
-39
-17
56
693
438
104
-44
137
58
575
558
-53
-68
84
54
547
226
103
-16
184
50
-22
-257
37
71
116
11
747
658
31
35
16
6
-497
-486
-167
94
61
2
1,432
1,296
-2
117
12
9
47 Mobile home
48
Commercial banks
49
Finance companies
Savings institutions
50
778
-85
-405
1,268
222
-726
-363
1,311
48
-71
-77
196
-207
-39
-121
-47
52
9
-67
110
-53
-74
-58
79
-21
-139
-63
181
142
-25
49
118
-63
-48
-32
17
-175
-14
-222
62
-3
-9
-7
12
51 Other
52
Commercial banks
Finance companies
53
Credit unions
54
55
Retailers
Savings institutions
56
17,738
6,187
6,131
616
172
4,632
4,842
2,754
604
1,736
177
-429
1,176
352
161
326
20
317
70
476
463
175
45
289
6
-52
655
689
-69
202
-16
-151
-2,448
-1,920
-843
124
-13
204
257
-309
-84
201
-6
455
-262
-497
75
98
-4
65
768
488
13
37
-9
240
602
68
341
142
1
49
30
31
32
33
34
35
1. The Board's series cover most short- and intermediate-term credit extended
to individuals that is scheduled to be repaid (or has the option of repayment) in
two or more installments.
_->
274
18
-696
2. More detail for finance companies is available in the G.20 statistical release,
3. Excludes 30-day charge credit held by travel and entertainment companies,
4. All data have been revised.
Consumer
1.56
Installment
Credit
A41
TERMS OF C O N S U M E R INSTALLMENT CREDIT
Percent unless noted otherwise
1987
1986
Item
1984
1985
1986
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
INTEREST R A T E S
1
2
3
4
6
Commercial b a n k s '
48-month new car24-month personal
120-month mobile home 2
Credit card
Auto finance companies
N e w car
Used car
13.71
16.47
15.58
18.77
12.91
15.94
14.96
18.69
11.33
14.82
13.99
18.26
n.a.
n.a.
n.a.
n.a.
10.58
14.19
13.49
18.09
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
10.35
14.10
13.42
18.10
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
14.62
17.85
11.98
17.59
9.44
15.95
6.12
15.17
11.83
15.20
11.71
15.12
11.65
14.62
10.78
14.56
10.59
14.40
10.81
14.49
48.3
39.7
51.5
41.4
50.0
42.6
45.3
42.2
53.4
42.6
53.3
42.7
53.8
44.8
53.6
44.7
53.7
44.9
54.3
45.0
88
92
91
94
91
97
92
97
93
97
93
98
94
98
94
99
94
99
94
98
9,333
5,691
9,915
6,089
10,665
6,555
11,340
6,746
11,160
6,946
10,835
7,168
10,902
7,067
10,602
7,075
10,641
7,145
10,946
7,234
OTHER TERMS3
7
8
9
10
11
12
Maturity (months)
N e w car
Used car
Loan-to-value ratio
N e w 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 B o a r d ' s G. 19 (421) release. F o r address,
see inside front cover.
A44
1.57
DomesticNonfinancialStatistics • August 1987
F U N D S R A I S E D IN U . S . C R E D I T M A R K E T S
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1984
Transaction category, sector
1985
1981
1986'
1986'
HI
H2
HI
H2
HI
H2
Nonfinancial sectors
375.8
387.4
548.8
756.3
869.3
834.0
727.8
784.8
732.6
1,006.1
706.0
962.5
87.4
87.8
-.5
161.3
162.1
-.9
186.6
186.7
-.1
198.8
199.0
-•2
223.6
223.7
-.1
214.3
214.7
-.3
181.3
181.5
216.3
216.4
-.1
201.8
201.9
-.1
245.5
245.5
-.1
211.3
211.4
-.1
217.5
218.0
-.5
5 Private domestic nonfinancial sectors
6
Debt capital instruments
7
Tax-exempt obligations
8
Corporate bonds
9
10
Home mortgages
Multifamily residential
11
1?
Commercial
13
Farm
288.5
155.5
23.4
22.8
109.3
72.2
4.8
22.2
10.0
226.2
148.3
44.2
18.7
85.4
50.5
5.4
25.2
4.2
362.2
252.8
53.7
16.0
183.0
117.1
14.1
49.0
2.8
557.5
314.0
50.4
46.1
217.5
129.9
25.1
63.3
-.8
645.7
461.7
152.4
73.9
235.4
150.3
29.2
62.4
-6.4
619.6
461.7
49.5
113.7
298.5
199.2
33.0
73.7
-7.4
546.5
298.4
42.8
31.2
224.5
135.2
27.5
62.9
-1.1
568.5
329.6
58.0
61.1
210.5
124.7
22.7
63.7
-.5
530.8
355.4
67.5
72.7
215.2
133.1
24.6
60.3
-2.8
760.6
568.0
237.3
75.1
255.7
167.5
33.7
64.4
-10.0
494.7
392.3
15.9
137.0
239.3
156.1
30.8
59.7
-7.4
745.0
531.2
83.0
90.4
357.7
242.3
35.1
87.7
-7.4
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
133.0
22.6
57.0
14.7
38.7
77.9
17.7
52.9
-6.1
13.4
109.5
56.8
25.8
-.8
27.7
243.5
95.0
80.1
21.7
46.6
184.0
96.6
41.3
14.6
31.4
157.9
65.8
71.0
-9.3
30.3
248.1
98.7
91.9
24.8
32.7
238.9
91.3
68.4
18.7
60.5
175.4
97.3
24.9
12.3
40.9
192.6
95.9
57.7
16.9
22.0
102.4
70.6
17.6
-15.7
29.9
213.9
61.6
124.4
-3.0
30.7
19
70
">1
11
73
24
By borrowing sector
State and local governments
Households
288.5
6.8
121.4
16.6
38.5
105.2
226.2
21.5
88.4
6.8
40.2
69.2
362.2
34.0
188.0
4.3
76.6
59.3
557.5
27.4
239.5
.1
97.1
193.4
645.7
107.8
295.0
-13.6
92.8
163.7
619.6
59.4
282.1
-14.4
114.6
178.0
546.5
25.2
232.8
-.4
101.4
187.4
568.5
29.6
246.2
.5
92.7
199.5
530.8
56.8
253.6
-5.9
85.6
140.7
760.6
158.7
336.4
-21.3
99.9
186.8
494.7
35.7
222.4
-15.1
94.4
157.3
745.0
83.2
342.3
-13.7
134.7
198.6
23.5
5.4
3.0
3.9
11.1
16.0
6.7
-5.5
1.9
13.0
17.4
3.1
3.6
6.5
4.1
6.1
1.3
-6.6
6.2
5.3
1.7
4.0
-2.8
6.2
-5.7
9.7
3.2
-1.0
11.5
-4.0
35.5
1.1
-2.2
18.0
18.7
-23.3
1.5
-11.1
-5.6
-8.1
-4.1
5.5
-6.1
4.2
-7.8
7.5
2.6
.4
8.2
-3.6
24.3
7.1
1.4
20.6
-4.8
-5.0
-.8
-3.5
2.4
-3.1
399.3
403.4
566.2
762.4
871.0
843.6
763.3
761.5
728.4
1,013.5
730.3
957.6
1 Total net borrowing by domestic nonfinancial sectors
By .sector and
instrument
i U.S. government
3
Treasury securities
4
Agency issues and mortgages
Nonfarm noncorporate
Corporate
25 Foreign net borrowing in United States
76
Bonds
77
Bank loans n.e.c
Open market paper
78
29
U.S. government loans
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
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
101.9
90.1
94.0
139.0
186.9
248.4
134.2
143.8
154.8
218.9
185.9
310.9
47.4
30.5
15.0
1.9
54.5
4.4
64.9
14.9
49.5
.4
25.2
12.5
.1
1.9
9.9
.8
67.8
1.4
66.4
74.9
30.4
44.4
80.0
31.8
48.2
92.9
25.3
67.6
64.4
17.3
.4
-.1
31.1
15.7
63.8
29.3
.4
1.4
17.0
15.7
61.9
35.3
-.1
21.3
-7.0
64.1
23.3
.4
.7
24.1
15.7
173.7
12.6
161.4
-.4
74.8
26.6
.1
4.0
24.2
19.8
69.8
29.1
40.7
26.2
12.1
101.5
20.6
79.9
1.1
85.3
36.5
.1
2.6
32.0
14.2
.9
13.9
11.7
110.2
15.9
92.1
2.2
108.8
37.7
.1
4.2
50.1
16.7
129.5
4.4
124.3
.8
56.4
25.5
.6
2.4
14.4
13.5
217.8
20.8
198.6
-1.5
93.1
27.7
-.4
5.6
34.1
26.2
1.4
66.4
26.2
5.0
12.1
-2.1
11.4
- i
30.4
44.4
64.1
7.3
15.6
22.7
17.8
.8
21.7
79.9
85.3
-4.9
14.5
22.3
52.8
.5
12.2
161.4
74.8
-3.6
4.5
29.2
44.1
.6
29.1
40.7
64.4
15.4
23.7
20.2
4.3
.8
31.8
48.2
63.8
-.9
7.5
25.1
31.3
.8
25.3
67.6
61.9
-9.2
13.7
12.1
44.8
.5
18.1
92.1
108.8
-.6
15.3
32.6
60.9
.5
5.2
124.3
56.4
-6.7
1.7
23.1
37.5
.9
19.3
198.6
93.1
-.5
7.4
35.3
50.6
.3
*
1.2
32.7
16.2
32.4
15.0
54.5
11.6
9.2
15.5
18.5
__2
15.3
49.5
25.2
11.7
6.8
2.5
4.3
*
*
All sectors
50 Total net borrowing
501.3
493.5
660.2
901.4
1057.8
1092.1
897.5
905.3
833.3
1,232.4
916.2
1268.5
51
52
53
54
55
56
57
58
133.0
23.4
32.6
109.2
22.6
61.2
51.3
68.0
225.9
44.2
37.8
85.4
17.7
49.3
5.7
27.6
254.4
53.7
31.2
183.0
56.8
29.3
26.9
24.8
273.8
50.4
70.7
217.8
95.0
74.2
52.0
67.6
324.2
152.4
114.4
235.4
96.6
41.0
52.8
41.0
388.4
49.5
143.5
298.6
65.8
74.0
26.4
45.8
251.2
42.8
49.6
224.8
98.7
89.6
73.8
67.1
296.4
58.0
91.9
210.8
91.3
58.8
30.1
68.1
294.8
67.5
113.5
215.2
97.3
19.8
30.4
44.8
353.5
237.3
115.3
255.7
95.9
62.3
75.2
37.3
340.0
15.9
169.6
239.9
70.6
21.4
19.3
39.4
436.9
83.0
117.4
357.3
61.6
126.6
33.4
52.3
U.S. government securities .
State and local obligations . .
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
External corporate equity funds raised in United States
50 Total new share issues
60
61
6?
63
64
Mutual funds
All other
Nonfinancial corporations
Financial corporations
Foreign shares purchased in United States
-3.3
33.6
67.0
-31.1
37.5
119.5
-40.1
-22.2
33.3
41.6
146.8
92.3
6.0
-9.3
-11.5
1.9
.3
16.8
16.8
11.4
4.0
1.5
32.1
34.9
28.3
2.7
3.9
38.0
-69.1
-77.0
6.7
1.2
103.4
-65.9
-81.6
11.7
4.0
191.7
-72.1
-80.8
7.0
1.6
39.3
-79.4
-84.5
5.9
-.7
36.6
-58.8
-69.4
7.6
3.0
93.6
-60.4
-75.7
11.0
4.3
113.1
-71.5
-87.5
12.4
3.6
198.7
-52.0
-68.7
8.3
8.5
184.6
-92.3
-92.7
5.7
-5.3
Flow of Funds
1.58
A43
DIRECT A N D I N D I R E C T S O U R C E S O F F U N D S TO CREDIT M A R K E T S
Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates.
1985
1984
Transaction category, or sector
1981
1982
1983
1984
1985
1986'
1986'
HI
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
By public agencies
7
3
4
5
6
and
H2
HI
H2
HI
H2
375.8
387.4
548.8
756.3
869.3
834.0
727.8
784.8
732.6
1,006.1
706.0
962.5
104.4
17.1
23.5
16.2
47.7
115.4
22.7
61.0
.8
30.8
115.3
27.6
76.1
-7.0
18.6
154.6
36.0
56.5
15.7
46.5
203.3
47.2
94.6
14.2
47.3
311.1
87.8
158.5
19.8
45.0
132.5
26.8
52.7
15.7
37.5
176.6
45.2
60.2
15.7
55.5
201.8
53.1
85.6
11.7
51.4
204.9
41.3
103.7
16.7
43.2
267.6
85.4
121.0
13.5
47.7
354.5
90.1
196.0
26.2
42.3
foreign
U.S. government securities
Residential mortgages
F H L B advances to savings and loans
Other loans and securities
7
8
9
10
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
24.0
48.2
9.2
23.0
15.9
65.5
9.8
24.1
9.7
69.8
10.9
24.9
17.4
73.3
8.4
55.5
17.8
101.5
21.6
62.4
10.9
176.6
30.2
93.4
9.0
74.0
8.8
40.7
25.7
72.5
8.0
70.4
28.8
98.2
23.7
51.0
6.7
104.9
19.5
73.8
12.9
135.3
9.8
109.7
9.0
217.9
50.6
77.1
11
12
Agency and foreign borrowing not in line 1
Sponsored credit agencies and mortgage pools
Foreign
47.4
23.5
64.9
16.0
67.8
17.4
74.9
6.1
101.5
1.7
173.7
9.7
69.8
35.5
80.0
-23.3
92.9
-4.1
110.2
7.5
129.5
24.3
217.8
-5.0
Private domestic funds
advanced
13 Total net advances
U.S. government securities
14
15
State and local obligations
Corporate and foreign bonds
16
Residential mortgages
17
Other mortgages and loans
18
LESS: Federal Home Loan Bank advances
19
342.3
115.9
23.4
19.8
53.5
145.9
16.2
352.9
203.1
44.2
14.8
-5.3
96.9
.8
518.7
226.9
53.7
14.6
55.0
161.5
-7.0
682.7
237.8
50.4
32.6
98.5
279.1
15.7
769.2
277.0
152.4
41.2
84.8
228.1
14.2
706.2
300.6
49.5
79.0
73.7
223.2
19.8
700.5
224.4
42.8
25.6
109.9
313.6
15.7
664.9
251.2
58.0
39.6
87.0
244.7
15.7
619.6
241.7
67.5
49.7
72.0
200.4
11.7
918.8
312.2
237.3
32.7
97.5
255.9
16.7
592.1
254.5
15.9
104.2
65.9
165.0
13.5
820.9
346.8
83.0
53.9
81.4
281.9
26.2
Private financial
intermediation
70 Credit market funds advanced by private financial
institutions
Commercial banking
71
77
Savings institutions
73
Insurance and pension funds
Other finance
24
320.2
106.5
26.2
93.5
94.0
261.9
110.2
21.8
86.2
43.7
391.9
144.3
135.6
97.8
14.1
550.5
168.9
149.2
124.0
108.3
554.4
186.3
83.4
141.0
143.6
647.9
194.8
105.3
137.2
210.5
581.8
184.2
173.5
144.5
79.5
519.1
153.5
124.9
103.5
137.2
471.3
133.8
63.0
121.8
152.7
637.4
238.8
103.9
160.1
134.5
572.4
106.9
101.4
128.6
235.6
724.0
283.0
109.3
145.9
185.8
75 Sources of funds
76
Private domestic deposits and RPs
Credit market borrowing
27
320.2
214.5
54.5
261.9
195.2
25.2
391.9
212.2
26.2
550.5
317.6
64.1
554.4
204.8
85.3
647.9
242.3
74.8
581.8
300.2
64.4
519.1
334.9
63.8
471.3
203.0
61.9
637.4
206.6
108.8
572.4
224.5
56.4
724.0
260.3
93.1
51.2
-23.7
-1.1
89.6
-13.6
41.5
-31.4
6.1
92.5
-25.7
153.4
16.3
-5.3
110.6
31.8
168.8
5.4
4.0
112.5
46.8
264.2
17.7
10.3
107.0
129.2
330.8
12.4
1.7
120.0
196.6
217.2
3.0
-.1
146.5
67.8
120.4
7.8
8.2
78.5
25.9
206.5
11.2
14.4
97.4
83.5
322.0
24.3
6.1
116.6
175.0
291.5
.9
-5.5
104.5
191.5
370.5
24.0
9.0
135.5
202.1
Private domestic nonfinancial
investors
33 Direct lending in credit markets
U.S. government securities
34
35
State and local obligations
36
Corporate and foreign bonds
Open market paper
37
Other
38
76.6
37.1
11.1
-4.0
1.4
31.0
116.3
69.9
25.0
2.0
-1.3
20.6
153.0
95.5
39.0
-12.7
15.1
16.2
196.4
132.9
29.6
-3.4
8.9
28.3
300.2
150.9
59.2
13.2
51.8
25.1
133.1
81.0
17.8
12.3
1.4
20.6
183.1
142.2
25.0
-26.8
15.7
26.9
209.6
123.6
34.3
19.9
2.2
29.7
210.2
130.8
20.5
25.4
7.3
26.3
390,2
171.0
98.0
1.0
96.3
24.0
76.1
41.4
-21.8
49.3
-13.8
21.0
190.0
120.9
57.4
-24.7
16.7
19.8
39 Deposits and currency
Currency
40
Checkable deposits
41
Samll time and savings accounts
4">
43
Money market fund shares
Large time deposits
44
45
Security RPs
Deposits in foreign countries
46
222.4
9.5
18.5
47.3
107.5
36.0
5.2
-1.7
204.5
9.7
18.6
135.7
24.7
5.2
11.1
-.4
229.7
14.3
28.8
215.3
-44.1
-6.3
18.5
3.1
321.1
8,6
27.8
150.7
47.2
84.9
7.0
-5.1
215.1
12.4
42.0
137.5
-2.2
14.0
13.4
-2.1
262.7
14.4
99.4
123.1
20.8
-8.2
7.2
6.0
311.3
13.1
29.4
136.4
30.2
93.4
10.8
-2.0
330.9
4.1
26.3
164.9
64.2
76.5
3.1
-8.2
215.9
15.8
18.2
167.1
4.2
-.8
14.3
-2.9
214.3
9.0
65.8
108.0
-8.6
28.9
12.5
-1.3
241.6
10.9
83.1
119.5
29.0
.9
-7.9
6.2
284.0
17.9
115.9
126.7
12.7
-17.3
47 Total of credit market instruments, deposits and
currency
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
78
79
30
31
32
5.7
299.0
320.7
382.7
517.4
515.3
395.8
494.4
540.5
426.0
604.5
317.8
474.0
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
26.2
93.6
-.7
28.6
74.2
-7.3
20.4
75.5
41.3
20.3
80.6
60.9
23.3
72.1
80.1
36.9
91.7
105.8
17.4
83.1
43.7
23.2
78.1
78.2
27.7
76.1
62.2
20.2
69.4
98.1
36.6
96.7
110.5
37.0
88.2
101.1
MEMO: Corporate equities not included above
51 Total net issues
57
Mutual fund shares
53
Other equities
54 Acquisitions by financial institutions
55 Other net purchases
-3.3
6.0
-9.3
19.9
-23.2
33.6
16.8
16.8
27.6
6.0
67.0
32.1
34.9
46.8
20.2
-31.1
38.0
-69.1
8.2
-39.4
37.5
103.4
-65.9
33.3
4.1
119.5
191.7
-72.1
25.2
94.3
-40.1
39.3
-79.4
-4.1
-36.0
-22.2
36.6
-58.8
20.6
-42.7
33.3
93.6
-60.4
54.0
-20.7
41.6
113.1
-71.5
12.6
29.0
146.8
198.7
-52.0
35.4
111.4
92.3
184.6
-92.3
15.1
77.2
48
49
50
N O T E S BY LINE N U M B E R .
1.
2.
6.
11.
13.
18.
26.
27.
29.
30.
Line 1 of table 1.57.
Sum of lines 3 - 6 or 7-10.
Includes farm and commercial mortgages.
Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities.
Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33.
Also sum of lines 28 and 47 less lines 40 and 46.
Includes farm and commercial mortgages.
Line 39 less lines 40 and 46.
Excludes equity issues and investment company shares. Includes line 19.
Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affiliates,
less claims on foreign affiliates and deposits by banking in foreign banks.
Demand deposits and note balances at commercial banks.
31. Excludes net investment of these reserves in corporate equities.
32. Mainly retained earnings and net miscellaneous liabilities.
33. Line 13 less line 20 plus line 27.
34-38. Lines 14-18 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 38 includes mortgages.
40. Mainly an offset to line 9.
47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46.
48. Line 2/line 1.
49. Line 20/line 13.
50. Sum of lines 10 and 29.
51. 53. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding may be obtained from Flow of Funds Section, Division of Research
and Statistics. Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.
A44
2.10
Domestic Nonfinancial Statistics • August 1987
N O N F I N A N C I A L BUSINESS ACTIVITY
Selected Measures1
1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1986
Measure
1984
1985
1987
1986
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.'
Mar.'
Apr.'
May
1 Industrial production
121.4
123.8
125.0
124.9
125.3
126.0
126.7
126.5
127.2
127.3
127.2
127.8
Market
groupings
P r o d u c t s , total
Final, total
Consumer goods
Equipment
Intermediate
Materials
126.7
127.3
118.0
139.6
124.7
114.2
130.8
131.1
120.2
145.4
130.0
114.2
133.2
132.3
124.4
142.7
136.4
113.9
133.3
132.2
124.2
142.8
137.0
113.5
134,0
132.7
124.7
143.3
138.7
113.3
134.5
133.1
125.6
143.1
139.2
114.3
135.0
133.7
127.2
142.2
139.7
115.2
134.9
133.6
126.8
142.8
139.1
115.2
136.1
135.0
127.5
144.9
139.7
115.1
136.2
135.1
127.6
145.0
140.1
115.1
135.6
134.4
126.6
144.7
140.0
115.6
136.5
135.2
127.4
145.6
140.7
116.0
123.4
126.4
129.1
129.5
129.9
130.3
131.1
131.1
132.0
132.2
132.0
132.7
80.5
82.0
80.1
80.2
79.8
78.5
79.6
78.1
79.6
77.8
80.3
78.7
80.2
78.6
79.9
78.8
80.2
79.0
2
3
4
5
6
7
Industry
groupings
8 Manufacturing
Capacity utilization (percent)9
Manufacturing
Industrial materials industries
10
11 Construction c o n t r a c t s (1982 = 100)
3
79.7''
78.8'
80.0
78.9
79.9''
78.8
135.0
148.0
155.0
155.0
151.0
156.0
155.0
150.0
145.0
160.0
158.0
149.0
12
13
14
15
16
17
18
19
20
21
Nonagricultural e m p l o y m e n t , total 4
G o o d s - p r o d u c i n g , total
Manufacturing, total
Manufacturing, p r o d u c t i o n - w o r k e r . . . .
Service-producing
Personal income, total
Wages and salary d i s b u r s e m e n t s
Manufacturing
Disposable p e r s o n a l income
Retail sales*
114.6
101.6
98.4
94.1
120.0
193.5
184.8
164.6
193.6
179.0
118.4
102.4
98.1
92.9
125.0
206.2
197.8
172.5
205.0
190.6
121.5
102.4
97.5
92.1
129.4
216.8
208.6
176.7
215.5
199.9
121.3''
101.1'
96.2'
90.9'
129.8'
218.2
210.1
176.5
216.4
213.0
121.5''
101.1'
96.2'
90.9'
130.1'
218.8
211.5
179.0
216.7
201.9
121.8'
101.2'
96.3'
91.1'
130.4'
219.2
212.5
177.8
216.8
200.9
121.9'
101.2'
96.4'
91.3'
130.6''
220.4
212.8
178.1
217.5
211.8
122.4''
101.5'
96.3'
91.1'
131.1'
221.3'
214.2''
178.7
219.0''
196.8
122.7
101.6
96.4
91.4
131.5
223.8
216.0
179.6
222.4
206.3
122.9
101.7
96.5
91.4
131.8
224.5
216.8
179.3
223.0
207.9
123.2
101.7
96.6
91.5
132.2
225.3
217.5
178.8
217.0
208.1
123.4
101.7
96.6
91.6
132.4
225.8
218.4
179.4
224.3
206.7
22
23
Prices
C o n s u m e r (1967 = 1(H))
P r o d u c e r finished goods (1967 = 100) . . .
311.1
291.1
322.2
293.7
328.4
289.6
330.2
287.3
330.5
290.7
330.8
290.7
331.1
290.4
333.1
291.8'
334.4
292.3
335.9
292.3
337.7
295.0
338.7
296.3
1. A m a j o r revision of the industrial production index and the capacity
utilization rates w a s released in July 1985. See " A Revision of the Index of
Industrial P r o d u c t i o n " and a c c o m p a n y i n g tables that contain revised indexes
( 1 9 7 7 = 100) t h r o u g h D e c e m b e r 1 9 8 4 in t h e FEDERAL RESERVE BULLETIN, v o l . 7 1
(July 1985), pp. 487-501. T h e revised indexes for January through June 1985 were
s h o w n in the S e p t e m b e r BULLETIN.
2. Ratios of indexes of production to indexes of capacity. Based on d a t a f r o m
Federal R e s e r v e , McGraw-Hill E c o n o m i c s D e p a r t m e n t , D e p a r t m e n t of Comm e r c e , and o t h e r sources.
3. Index of dollar value of total construction c o n t r a c t s , including residential,
nonresidential and heavy engineering, f r o m McGraw-Hill Information S y s t e m s
C o m p a n y , F. W, Dodge Division.
4. Based on data in Employment
and Earnings ( U . S . D e p a r t m e n t of Labor).
Series c o v e r s e m p l o y e e s only, excluding personnel in the Armed Forces.
5. Based on data in Survey of Current Business ( U . S . D e p a r t m e n t of C o m merce).
6. Based on Bureau of C e n s u s data published in Survey of Current
Business.
7. Data without seasonal a d j u s t m e n t , as published in Monthly Labor
Review.
Seasonally adjusted data for c h a n g e s in the price indexes may be obtained f r o m
the Bureau of L a b o r Statistics, U . S . D e p a r t m e n t of L a b o r .
NOTE. Basic data (not index n u m b e r s ) f o r series mentioned in notes 4, 5,and 6,
and indexes for series mentioned in notes 3 and 7 may also be f o u n d in the Survey
of Current
Business.
Figures for industrial production for the last two m o n t h s are preliminary and
estimated, respectively.
Selected Measures
2.11
LABOR FORCE, EMPLOYMENT, A N D
A45
UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1987
1986
Category
1984
1985'
1986'
Oct.'
Nov.'
Dec.'
Jan.
Feb.'
Mar.'
Apr.'
May
HOUSEHOLD SURVEY DATA
1
1 Noninstitutional population
178,602
180,440
182,822
183,450
183,628
183,815
184,092
184,259
184,436
184,597
184,777
115,763
113,544
117,695
115,461
120,078
117,834
120,678
118,414
120,940
118,675
120,854
118,586
121,299
119,034
121,610
119,349
121,479
119,222
121,588
119,335
122,237
119,993
101,685
3,321
103,971
3,179
106,434
3,163
107,030
3,162
107,217
3.215
107,476
3,161
107,866
3,145
108,146
3,236
108,084
3,284
108,545
3,290
109,112
3,335
8,539
7.5
62,839
8,312
7.2
62,745
8,237
7.0
62.744
8.222
6.9
62.772
8.243
6.9
62.688
7,949
6.7
62,961
8.023
6.7
62.793
7,967
6.7
62,649
7,854
6.6
62.957
7,500
6.3
63,009
7,546
6.3
62,540
6
7
8
Labor force (including Armed Forces) 1
Civilian labor force
Employment
Nonagricultural industries 2
Agriculture
Unemployment
Number
Rate (percent of civilian labor force) . . .
Not in labor force
9
Nonagricultural payroll employment-1
94,496
97,519
99,610
100,209
100,415
100,567
100,919'
101,150
101,329
101,609
101,732
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
19,378
966
4,383
5,159
22,100
5,689
20,797
16,023
19,260
927
4,673
5,238
23,073
5,955
22,000
16,394
18,994
783
4,904
5,244
23,580
6,297
23,099
16,710
18.934
735
4,942
5,251
23.711
6.395
23,369
16.872
18,954
730
4,946
5,278
23,737
6.418
23,452
16,900
18,970
724
4,936
5.286
23,732
6,451
23,544
16,924
18,956'
718'
5,034'
5,304'
23,821'
6.480'
23,670
16,936'
18.986
719
5,038
5,315
23,897
6,501
23,759
16,935
18,995
722
5,032
5,333
23,902
6,526
23,842
16,977
19,011
730
5,016
5,345
23,982
6,560
23,926
17.039
19,016
735
4,996
5,344
24,006
6,577
24,022
17,036
I
3
4
5
ESTABLISHMENT SURVEY DATA
10
11
1?
13
14
15
16
17
1. Persons 16 years of age and over. Monthly figures, which are based on
sample data, relate to the calendar week that contains the 12th day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the March 1987
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
Domestic Nonfinancial Statistics • August 1987
OUTPUT, CAPACITY, A N D CAPACITY
UTILIZATION
Seasonally adjusted
1986
Q2
Q3
1987
Q4
Ql'
Output (1977 = 100)
1986
Q2
Q3
1987
Q4
Ql
1986
Q2
Capacity (percent of 1977 output)
Q3
1987
Q4
Ql'
Utilization rate (percent)
1 Total industry
124.4
125.0
126.0
127.0
157.1
157.9
158.8'
159.6
79.2
79.1
79.3
79.6
2 Mining
3 Utilities
99.9
108.9
96.6
108.8
96.6
110.4
96.6
109.5
132.1
136.9
131.9
137.5
131.7
138.1
131.3
138.7
75.6
79.5
73.2
79.1
73.4
79.9
73.6
78.9
4 Manufacturing
128.4
129.4
130.4
131.8
161.4
162.4
163.4
164.4
79.5
79.7
79.8
80.2
5 Primary p r o c e s s i n g . . . .
6 Advanced processing
111.1
138.9
112.1
139.7
114.0
140.4
115.1
141.8
134.0
177.9
134.6
179.1
135.1
180.4
135.9'
181.7
82.9
78.0
83.3
78.0
84.3'
77.8
84.7
78.1
7 Materials
113.3
113.4
114.3
115.1
144.7
145.3
145.8
146.3
78.3
78.1
78.4
78.7
8 Durable goods
9
Metal materials
10 Nondurable goods . . . .
11
Textile, paper, and chemical . .
12
Paper
13
Chemical
118.8
75.1
116.9
117.0
130.1
115.4
118.8
73.1
119.7
120.4
135.1
117.7
120.1
75.7
121.1
122.4
136.0
120.1
121.2
75.5
122.8
124.2
136.4
122.5
160.7
114.5
139.5
138.8
138.1
144.3
161.5
114.0
139.9
139.2
138.9
144.7
162.2
113.4
140.4
139.6
139.7
145.0
163.0
112.7
141.0
140.4
140.8
145.6
73.9
65.6
83.8
84.3
94.2
80.0
73.6
64.2
85.6
86.5
97.3
81.4
74.0
66.7
86.4
87.6
97.3
82.8
74.4
67.0
87.1
88.5
96.9
84.2
14 Energy materials
100.6
98.6
98.2
97.8
121.3
121.4
121.6
121.6
82.9
81.2
80.7
80.5
Previous cycle
High
1
Low
Latest cycle
High
2
Low
1986
May
1986
Sept.
Oct.
1987
Nov.
Dec.
Jan.
Feb.'
Mar.'
Apr.'
May
Capacity utilization rate (percent)
15 Total industry
88.6
72.1
86.9
69.5
79.1
79.0
79.0
79.4
79.6
79.4
79.7
79.6
79.4
79.6
16 Mining
17 Utilities
92.8
95.6
87.8
82.9
95.2
88.5
76.9
78.0
75.5
79.3
72.9
78.7
72.5
79.3
73.9
80.5
73.8
79.5
73.9
79.1
73.3
79.0
73.5
78.7
73.7
79.4
73.7
80.4
18 Manufacturing
87.7
69.9
86.5
68.0
79.4
79.6
79.6
79.8
80.0
79.9'
80.3
80.2
79.9
80.2
19 Primary p r o c e s s i n g . . . .
20 Advanced processing..
91.9
86.0
68.3
71.1
89.1
85.1
65.1
69.5
82.9
78.0
83.7
77.6
83.8
77.8
84.4
77.7
85.0
77.9
84.8'
77.8
84.7
78.3
84.7
78.1
85.0
77.7
85.5
77.9
21 Materials
92.0
70.5
89.1
68.4
78.1
78.1
77.8
78.4
78.9
78.8
78.7
78.6
78.8
79.0
22 Durable goods
23
Metal materials
91.8
99.2
64.4
67.1
89.8
93.6
60.9
45.7
73.7
65.2
73.5
64.8
73.6
65.2
74.2
68.4
74.3
66.5
74.0
65.9
74.6
67.3
74.5
68.0
74.4
68.3
74.5
68.7
24 Nondurable goods . . . .
91.1
66.7
88.1
70.6
83.5
86.1
85.8
85.7
87.7
87.5
86.8
86.8
87.6
87.8
92.8
98.4
92 5
64.8
70.6
64.4
89.4
97.3
87.9
68.6
79.9
63.3
84.2
93.1
80.2
87.4
96.1
82.6
87.0
95.7
82.5
86.7
96.0
81.7
89.2
100.2
84.3
89.3
98.3
84.9
88.1
97.1
83.7
88.1
95.4
84.0
88.9
95.1
85.6
89.1
76
11
28 Energy materials
94.6
86.9
94.0
82.2
82.9
80.7
79.7
81.2
81.2
81.3
80.3
79.7
80.5
81.0
25
Textile, paper, and
chemical
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
1986
1986
avg.
May
June
July
Aug.
1987
Sept.
Oct.
Nov.
Dec.
Jan.
Feb/
Mar.
Apr.P
May c
Index (1977 = 100)
MAJOR MARKET
100.00
125.0
124.2
124.2
124.9
125.1
124.9
125.3
126.0
126.7
126.5
127.2
127.3
127.2
127.8
2 Products
3
Final products
4
Consumer goods
5
Equipment
57.72
44.77
25.52
19.25
133.2
132.3
124.4
142.7
132.4
131.6
124.3
141.2
132.4
131.1
124.4
140.0
133.2
132.0
125.2
141.0
133.8
132.6
125.1
142.5
133.3
132.2
124.2
142.8
134.0
132.7
124.7
143.3
134.5
133.1
125.6
143.1
135.0
133.7
127.2
142.2
134.9
133.6
126.8
142.8
136.1
135.0
127.5
144.9
136.2
135.1
127.6
145.0
135.6
134.4
126.6
144.7
136.5
135.2
127.4
145.6
6
Intermediate products
7 Materials
12.94
42.28
136.4
113.9
135.1
113.0
137.0
113.1
137.3
113.6
137.8
113.2
137.0
113.5
138.7
113.3
139.2
114.3
139.7
115.2
139.1
115.2
139.7
115.1
140.1
115.1
140.0
115.6
140.7
116.0
6.89
2.98
1.79
1.16
.63
1.19
3.91
1.24
1.19
.96
1.71
116.2
115.1
112.9
97.3
141.8
118.4
117.1
139.5
141.6
125.8
96.0
113.8
113.2
110.3
94.8
139.1
117.4
114.3
133.9
135.8
123.3
95.0
114.3
113.7
112.2
99.3
136.1
116.1
114.8
137.5
139.1
122.5
94.1
116.3
116.4
114.5
95.3
150.3
119.1
116.3
138.9
141.6
126.6
94.1
115.7
114.5
110.4
87.8
152.4
120.7
116.7
139.4
142.5
125.8
95.1
117.4
117.0
116.8
96.2
155.1
117.3
117.7
141.2
143.5
126.2
96.0
116.3
112.7
107.7
91.9
137.1
120.1
119.0
142.6
144.3
128.8
96.5
118.4
114.6
107.6
92.3
136.0
125.2
121.2
148.1
150.0
131.1
96.3
121.5
117.7
115.6
99.5
145.6
120.8
124.4
153.2
155.1
132.0
99.4
120.0
117.6
117.9
94.3
161.9
117.1
121.9
146.9
148.9
129.1
99.8
122.4
123.5
125.2
105.3
162.1
121.0
121.6
145.2
146.7
130.8
99.3
121.6
121.1
121.6
100.9
159.9
120.3
122.0
144.0
144.9
132.6
100.2
118.4
115.5
111.5
91.8
119.4
116.7
113.1
91.C
121.4
120.6
138.9
140.5
134.5
99.7
122.0
121.5
141.1
19 Nondurable consumer goods
20
Consumer staples
21
Consumer foods and tobacco
22
Nonfood staples
23
Consumer chemical products . .
24
Consumer paper products
25
Consumer energy
26
Consumer fuel
27
Residential utilities
18.63
15.29
7.80
7.49
2.75
1.88
2.86
1.44
1.42
127.5
97.0
134.1
131.9
136.5
161.2
147.4
105.7
92.8
128.1
135.0
132.4
137.7
162.4
148.6
106.8
96.4
117.5
128.1
135.1
133.3
137.0
163.6
147.1
104.8
91.8
118.1
128.4
135.3
132.2
138.5
166.4
146.4
106.6
91.2
122.3
128.6
135.5
133.2
137.9
163.4
147.7
107.1
94.9
119.6
126.7
133.6
131.0
136.3
161.1
145.7
106.3
92.0
120.9
127.8
134.4
131.6
137.2
161.7
150.3
105.2
90.8
119.8
128.3
135.0
132.6
137.4
161.0
151.5
105.5
91.7
119.6
129.4
136.0
133.9
138.2
163.1
150.1
106.4
92.2
120.8
129.2
135.9
132.9
139.0
165.9
149.4
106.3
95.0
117.8
129.4
135.9
134.0
137.9
164.7
147.8
105.7
92.5
119.2
129.8
136.4
134.3
138.6
167.3
146.7
105.8
94.1
117.7
129.6
136.3
134.1
138.6
167.0
147.1
105.7
93.5
130.3
137.0
Equipment
28 Business and defense equipment
29
Business equipment
30
Construction, mining, and farm . .
31
Manufacturing
32
Power
33
Commercial
34
Transit
35
Defense and space equipment
18.01
14.34
2.08
3.27
1.27
5.22
2.49
3.67
147.1
138.6
59.8
112.0
81.6
214.6
109.2
180.3
146.0
137.9
60.9
111.9
82.9
212.9
107.3
178.0
145.1
136.6
61.9
111.7
83.5
208.2
108.8
178.4
146.4
137.9
60.6
112.6
81.7
214.5
103.9
179.5
147.8
139.3
58.3
113.3
81.7
217.5
106.9
181.0
148.0
139.3
58.1
113.0
80.3
215.1
113.3
182.0
148.4
139.1
58.0
112.7
80.5
215.4
111.8
184.6
148.1
138.6
56.6
109.6
79.5
217.3
110.7
184.9
147.0
137.1
58.2
108.8
80.2
213.7
108.9
185.8
147.7
138.1
57.2
110.1
79.6
215.9
109.5
185.2
150.1
140.8
56.8
111.5
81.2
218.4
117.4
186.5
150.0
140.6
57.6
111.2
81.4
219.4
114.0
186.6
149.8
140.4
58.2
111.9
81.0
220.2
110.0
186.5
5.95
6.99
5.67
1.31
124.7
146.4
150.6
128.3
123.5
145.0
148.3
130.7
124.1
147.9
151.6
131.9
124.0
148.6
153.3
128.3
125.4
148.4
152.5
130.6
125.9
146.4
151.2
125.8
126.3
149.3
154.1
128.8
126.8
149.7
153.7
132.4
127.9
149.8
154.3
130.3
128.3
148.3
153.3
126.8
128.4
149.4
154.1
128.8
128.5
150.0
154.6
130.4
127.9
150.3
154.5
132.3
128.6
20.50
4.92
5.94
9.64
4.64
119.7
98.5
153.9
109.4
80.0
118.4
96.4
152.3
108.8
78.9
117.8
96.3
151.8
107.9
76.7
118.8
96.7
154.3
108.2
77.4
118.8
95.2
155.6
108.1
76.9
118.9
95.3
154.8
108.8
78.4
119.2
97.0
153.5
109.4
78.8
120.4
98.0
154.5
110.7
82.1
120.7
98.8
154.2
111.2
80.3
120.5
99.0
154.0
110.8
79.2
121.5
100.0
155.6
111.5
80.3
121.6
98.8
155.8
112.3
80.9
121.5
96.4
156.3
113.0
81.5
121.8
96.1
156.8
113.4
1 Total index
Consumer goods
8 Durable consumer goods
9
Automotive products
10
Autos and trucks
11
Autos, consumer
12
Trucks, consumer
13
Auto parts and allied goods
14
Home goods
15
Appliances, A/C and TV
16
Appliances and TV
17
Carpeting and furniture
18
Miscellaneous home goods
Intermediate
products
36 Construction supplies
37 Business supplies
38
General business supplies
39
Commercial energy products
Materials
40 Durable goods materials
41
Durable consumer parts
42
Equipment parts
43
Durable materials n.e.c
44
Basic metal materials
139.2
150.6
141.2
112.3
81 .C
221.5
110.3
187.4
45 Nondurable goods materials
46
Textile, paper, and chemical
materials
47
Textile materials
48
Pulp and paper materials
49
Chemical materials
50
Miscellaneous nondurable materials
10.09
118.3
116.5
117.7
118.9
119.7
120.6
120.3
120.2
123.2
123.2
122.5
122.7
124.1
124.7
7.53
1.52
1.55
4.46
2.57
118.9
110.6
132.1
117.1
116.5
116.9
108.4
128.6
115.7
115.3
118.2
109.5
132.7
116.1
116.4
119.0
111.2
135.6
115.9
118.3
120.5
113.4
136.0
117.5
117.2
121.8
116.0
133.7
119.7
117.1
121.3
114.3
133.5
119.5
117.5
121.0
115.6
134.2
118.5
117.6
124.7
116.1
140.2
122.3
118.5
125.0
116.5
137.9
123.4
118.0
123.6
115.8
136.7
121.8
119.0
124.0
117.6
134.7
122.4
119.0
125.3
119.0
134.9
124.2
126.0
51 Energy materials
52
Primary energy
53
Converted fuel materials
11.69
7.57
4.12
99.9
105.5
89.6
100.5
106.7
89.2
100.8
106.5
90.4
99.9
104.8
90.9
97.9
103.7
87.3
98.0
103.8
87.4
96.9
102.7
86.2
98.7
104.8
87.6
98.8
105.1
87.3
98.9
104.1
89.4
97.6
102.6
88.5
96.9
101.5
88.5
97.8
102.0
90.0
98.4
A44
2.13
Domestic Nonfinancial Statistics • August 1987
INDUSTRIAL PRODUCTION Indexes and Gross Value—Continued
1977
proportion
SIC
code
Grouping
1986
avg.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec
Jan.
Feb/
Mar.
A p r .p
May
Index (1977 = 100)
MAJOR INDUSTRY
15.79
9.83
5.96
84.21
35.11
49.10
103.4
99.6
109.6
129.1
130.9
127.9
103.1
99.8
108.5
128.2
129.9
127.0
102.6
98.9
108.6
128.3
131.2
126.2
101.8
97.1
109.7
129.2
131.7
127.4
100.9
96.4
108.3
129.5
132.2
127.5
100.8
96.2
108.3
129.5
131.4
128.1
100.7
95.6
109.3
129.9
132.3
128.1
102.6
97.4
111.2
130.3
132.7
128.6
101.9
96.7
110.6
131.1
133.7
129.2
101.9
97.2
109.5
131.1
134.1
129.0
101.3
96.2
109.6
132.0
134.3
130.4
101.3
96.4
109.3
132.2
134.6
130.5
101.7
96.5
110.4
132.0
135.1
129.8
102.2
96.3
111.9
132.7
135.9
130.4
10
11.12
13
14
.50
1.60
7.07
.66
124.2
94.7
113.9
72.0
124.0
95.1
112.4
65.9
127.3
93.3
114.5
69.2
120.2
92.4
111.8
70.9
122.2
90.7
114.8
70.7
120.8
91.0
111.7
68.5
117.6
90.5
116.4
68.3
130.1
90.4
115.2
73.5
124.3
90.9
109.6
72.1
133.5
89.9
107.1
72.0
127.7
89.5
110.0
71.6
121.8
91.0
111.2
121.6
91.2
112.4
122.9
90.6
133.7
101.6
111.3
102.6
133.2
134.6
97.6
112.6
101.7
137.2
134.3
97.9
113.4
102.5
138.1
135.1
97.1
114.7
102.5
138.6
134.3
89.8
116.0
102.7
136.9
133.7
100.1
116.1
104.2
137.8
134.4
96.8
117.8
105.1
139.5
135.3
92.9
118.4
141.6
135.3
89.1
118.0
107.2
139.8
135.7
98.7
118.4
107.4
140.5
136.1
100.7
118.8
106.7
139.2
138.4
165.4
134.1
90.6
155.5
61.9
164.6
134.4
94.0
155.5
62.0
163.0
133.9
93.3
154.9
59.4
167.8
133.9
91.1
157.6
60.2
168.5
132.3
92.0
159.0
61.3
167.7
134.6
92.5
160.7
59.4
168.1
137.4
94.7
158.1
58.3
166.7
137.7
91.9
159.2
59.6
167.9
138.2
91.4
160.2
59.1
169.2
139.0
92.6
162.2
59.3
1 Mining a n d utilities
2
Mining
Utilities
3
4 Manufacturing
5
Nondurable
6
Durable
7
8
9
10
Mining
Metal
Coal
Oil a n d gas e x t r a c t i o n
Stone and earth minerals
11
12
13
14
15
Nondurable
manufactures
Foods
Tobacco products
Textile mill p r o d u c t s
Apparel products
P a p e r and p r o d u c t s
20
21
22
23
26
7.96
.62
2.29
2.79
3.15
133.6
96.6
113.2
103.6
136.4
Printing a n d publishing
C h e m i c a l s and p r o d u c t s
Petroleum products
R u b b e r a n d plastic p r o d u c t s . . .
Leather and products
27
28
29
30
31
4.54
8.05
2.40
2.80
.53
163.4
133.0
92.1
153.3
61.3
161.9
131.5
95.7
150.1
59.5
164.0
134.2
91.8
152.2
57.9
Durable
manufactures
21 L u m b e r a n d p r o d u c t s
22 F u r n i t u r e a n d fixtures
23 C l a y , glass, s t o n e p r o d u c t s . . . .
24
25
32
2.30
1.27
2.72
123.4
146.7
120.2
121.6
146.2
120.2
120.9
147.1
120.8
120.8
149.5
119.6
122.5
148.3
119.7
125.0
147.7
121.6
125.9
149.2
118.1
129.5
148.6
120.6
133.1
150.5
121.7
130.2
148.7
122.8
130.0
151.8
121.5
129.6
153.8
122.6
130.6
155.7
121.5
33
331.2
34
35
36
5.33
3.49
6.46
9.54
7.15
75.8
63.4
107.4
141.9
166.5
74.8
60.2
106.5
141.3
166.0
71.4
58.3
106.6
140.4
163.2
73.6
61.7
105.7
142.6
166.8
73.4
60.8
105.9
142.6
167.2
74.1
61.1
107.3
140.9
166.9
74.2
62.2
108.3
142.2
167.7
76.8
64.8
107.1
141.2
168.3
73.5
60.5
108.3
139.9
170.2
73.6
60.2
108.0
140.3
169.2
76.3
63.1
108.2
142.3
169.3
77.5
65.1
108.6
143.7
167.7
76.8
65.1
108.6
144.3
166.4
109.0
145.3
166.7
37
371
9.13
5.25
125.8
110.9
124.1
108.7
125.1
110.6
125.6
111.2
125.1
108.2
127.7
112.2
125.2
107.1
125.6
107.9
127.0
111.2
128.1
112.2
131.8
117.8
130.6
115.5
126.9
109.3
127.7
110.2
372-6.9
38
39
3.87
2.66
1.46
146.1
141.3
99.3
145.0
140.3
101.0
144.7
139.9
98.3
145.2
141.7
97.5
148.0
142.0
98.3
148.7
141.7
97.7
149.7
140.3
99.0
149.6
141.1
98.9
148.4
142.4
103.1
149.6
142.5
101.8
150.7
143.3
101.1
151.1
142.2
102.2
150.7
143.1
101.5
151.4
143.0
4.17
122.2
121.7
123.1
125.4
122.4
122.8
123.8
125.1
123.5
121.7
122.3
123.3
123.7
16
17
18
19
20
24
25
26
27
28
Primary metals
Iron and steel
F a b r i c a t e d metal p r o d u c t s
Nonelectrical machinery
Electrical m a c h i n e r y
....
29 T r a n s p o r t a t i o n e q u i p m e n t
30
M o t o r vehicles and p a r t s . . . .
31
Aerospace and miscellaneous
transportation equipment
32 I n s t r u m e n t s
33 M i s c e l l a n e o u s m a n u f a c t u r e s . . .
Utilities
34 Electric
135.9
120.5
171.6
92.3
77.4
G r o s s value (billions of 1982 dollars, a n n u a l rates)
MAJOR MARKET
35 Products, total
517.5 1,702.2 1,687.6 1,676.7 1,669.9 1,681.3 1,677.8 1,683.9 1,690.8 1,701.9 1,707.1 1,721.4 1,723.6 1,712.2 1,721.4
36 Final
37
Consumer goods .
38
Equipment
39 I n t e r m e d i a t e
405.7 1,314.5 1,301.1 1,289.5 1,282.7 1,292.6 1,292.3 1,292.5 1,297.6 1,306.7 1,315.1 1,331.9 1,330.2 1,317.6 1,322.6
861.1
863.0
839.8 839.3
847.2 860.5 865.5 869.7
870.1
843.8 842.4 846.9
272.7
853.8 852.4
450.4 446.2 449.6 462.2 460.0 456.5 459.6
448.7 445.7 440.4 445.7 452.5 453.2
133.0 458.2
385.5 391.4
393.2
395.3
391.9 389.5
393.4 394.6
398.8
387.1 388.7
111.9 387.6 386.4
387.2
• A m a j o r revision of the industrial p r o d u c t i o n index and the c a p a c i t y
utilization r a t e s w a s released in July 1985. S e e " A Revision of the I n d e x of
Industrial P r o d u c t i o n " a n d a c c o m p a n y i n g tables that c o n t a i n revised i n d e x e s
( 1 9 7 7 = 1 0 0 ) t h r o u g h D e c e m b e r 1 9 8 4 i n t h e FEDERAL RESERVE B U L L E T I N , v o l . 71
(July 1985), p p . 487-501. T h e r e v i s e d i n d e x e s f o r J a n u a r y t h r o u g h J u n e 1985 w e r e
s h o w n in the S e p t e m b e r BULLETIN.
NOTE. T h e s e d a t a also a p p e a r in the B o a r d ' s G . 12.3 (414) r e l e a s e . F o r a d d r e s s ,
see inside f r o n t c o v e r .
Selected Measures
2.14
A49
HOUSING A N D CONSTRUCTION
M o n t h l y figures a r e at s e a s o n a l l y a d j u s t e d a n n u a l r a t e s e x c e p t a s n o t e d .
1987
1986
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb/
Mar.'
Apr.
Private residential real estate activity (thousands of units)
NEW
UNITS
Permits authorized
1
1-family
2-or-more-family
3
1.682
922
759
1,733
957
777
1,750
1,071
679
1,778
1,098
680
1,728
1,059
669
1,687
1,071
616
1,664
1,036
628
1,667
1,028
639
1,862
1,184
678
1,652
1,085
567
1,676
1,204
472
1,719
1,150
569
1,598
1,058
540
Started
1-family
2-or-more-family
1,749
1,084
1,742
1,072
1,805
1,179
1,786
1,147
1,800
1,180
1,689
1,123
1,657
1,114
1,637
1,129
1,813
1.233
1,816
1,253
1,838
1,303
1,730
1,211
1,665
1,222
665
669
626
639
620
566
543
508
580
563
535
519
443
1,051
556
494
1,063
1,074
1,163
1,154
1,142
1,089
1,075
628
534
627
527
625
518
506
610
494
609
480
1,096
621
1,085
583
490
1,125
619
1,104
539
524
1,154
620
534
476
617
469
624
450
1,652
1,025
627
1,703
1,072
631
1,756
1,120
637
1,750
1,074
676
1,757
1,124
633
1,740
1,113
627
1,745
1,165
580
1,774
1,158
616
1,894
1,184
710
1,956
1,217
739
1,726
1,107
619
1,696
1,145
551
1,821
1,142
679
296
284
244
238
231
243
241
237
251
242
231
228
227
639
358
688
350
748
361
691
350
623
352
744
355
675
357
691
353
768
357
712'
358'
742
358
722
357
777
355
1
4
5
6
7 Under construction, end of period 1
1-family
8
2-or-more-family
9
10 Completed
1-family
11
2-or-more-family
12
13 Mobile homes shipped
Merchant builder activity in 1-family
14 Number sold
1
15 Number for sale, end of period
Price (thousands
Median
Units sold
Average
Units sold
17
units
of dollars)2
80.0
84.3
92.2
94.1
91.5
95.0
96.4
94.0
95.(X
98.5'
95.0
99.0
99.0
97.5
101.0
112.2
116.8
113.2
114.0
114.9
113.6
118.9'
122.1'
120.3
121.2
118.8
2,868
16
3,217
3,566
3,460
3,590
3,710
3,760
3,850
4,060
3,470
3,690
3,680
3,560
72.3
85.9
75.4
90.6
80.3
98.3
79.9
99.2
82.0
100.3
80.3
98.2
79.4
97.3
80.4
99.1
80.8
100.6
82.4
100.3
85.0
104.3
85.6
104.7
85.0
105.0
EXISTING UNITS ( 1 - f a m i l y )
18 Number sold
Price of units sold (thousands
19 Median
20 Average
of dollars)2
Value of new construction 3 (millions of dollars)
CONSTRUCTION
21 Total put in place
327,209 355,570 377,903 380,722 382,603 382,581 388,471 383,142 378,527
381,084 386,797 382,411
384,141
?.?.Private
73
Residential
Nonresidential, total
74
Buildings
Industrial
25
76
Commercial
Other
71
Public utilities and other
28
271,973 292,792 306,697 309,003 310,155 308,617 315,267 311,668 305,489
155,148 158,818 175,597 178,821 178,761 178,480 186,962 185,716 181,514
116,825 133,974 131,100 130,182 131,394 130,137 128,305 125,952 123,975
307,199 311,325 306,011
185,373 184,915 184,659
121,826 126,410 121,352
307,911
184,192
123,719
79 Public
30
Military
31
Highway
Conservation and development
32
Other
33
13,746
48,100
12,547
42,432
15,769
59,626
12,619
45,960
13,653
52,084
13,433
51,930
12,866
58,132
13,277
45,907
12,543
60,054
13,315
45,482
13,180
58,001
14,001
44,955
12,948
56,220
14,324
44,813
13,532
54,884
13,937
43,599
12,582
54,419
13,880
43,094
12,155
51,908
14,100
43,663
12,723
55,363
14,633
43,691
11,101
53,390
14,975
41,886
11,171
54,362
14,898
43,288
55,232
2,839
16,343
4,654
31,396
62,777
3,283
19,998
4,952
34,544
71,204
3,893
21,260
4,728
41,323
71,719
3,553
21,603
4,415
42,148
72,448
4,132
21,607
4,294
42,415
73,964
5,050
20,552
4,841
43,521
73,204
3,540
20,480
4,754
44,430
71,474
3,980
18,425
4,516
44,553
73,039
4,295
18,989
5,038
44,717
73,885
4,025
22,895
5,100
41,865
75,472
3,616
21,898
4,759
45,199
76,401
4,156
21,881
4,833
45,531
76,230
3,888
21,087
5,297
45,958
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.
A44
2.15
Domestic Nonfinancial Statistics • August 1987
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)
Change from 1 month earlier
Index
level
May
Item
1987
1986
1986
1987
1987
(1967
= 100)'
1987
May
May
June
Sept.
Dec.
Mar.
Jan.
Feb.
Mar.
Apr.
May
C O N S U M E R PRICES 2
1
All items
2
3
4
5
6
Food
Energy items
All items less food and energy
Commodities
Services
1.6
3.8
1.6
2.0
2.5
6.2
.7
.4
.4
.4
.3
338.7
2.6
-14.8
4.0
1.0
5.8
4.9
-.2
4.2
3.2
4.7
3.9
-12.6
3.3
.3
4.9
8.4
-21.0
3.7
2.6
4.3
4.1
-9.9
3.7
1.4
5.1
2.5
26.1
5.2
5.1
5.3
.4
3.0
.5
.6
.5
.3
1.9
.3
.0
.4
-.1
1.0
.5
.7
.4
.3
.3
.5
.6
.4
.5
.2
.3
.3
.3
332.5
366.9
338.9
270.7
413.2
-1.8
2.0
-28.4
2.4
1.8
2.6
4.3
-3.3
2.7
2.0
.7
8.2
-20.7
.9
2.4
-.4
11.2
-42.7
2.3
2.0
1.8
1.0
-12.5
4.4
3.4
3.9
-6.7
57.6
3.4
.1
.4
-1.8
7.7 R
.5'
.2
.1
-.5
4.3'
-.4'
-.3
.4
.5
-.2
.8
.1
.7
1.5
2.1
.2
.3
.3
1.4
.0
-.2
.1
296.3
286.7
516.5
264.4
311.9
-4.3
-.6
1.8
2.1
-5.1
-1.2
-1.5
1.5
-1.2
1.2
8.0
3.3
.5
.1'
.4
.3
.3
.2
.4
.4
318.1
310.5
-2.7
-25.0
-1.2
9.3
6.4
5.5
5.9
-29.1
6.6
18.1
-19.6
-24.1
-2.7
-.5
8.5
-11.3
41.2
16.3
-.3'
1.4'
.3'
.4
-.9
-.9
4.3
1.7
.7
4.8
2.7
2.4
251.3
606.9
263.1
PRODUCER PRICES
7
8
9
10
11
Finished goods
Consumer foods
Consumer energy
Other consumer goods
Capital equipment
12
13
Intermediate materials 3
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.
1.0
.4
-3.1'
8.4'
4.5'
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
B i l l i o n s of c u r r e n t d o l l a r s e x c e p t a s n o t e d ; q u a r t e r l y d a t a a r e at s e a s o n a l l y a d j u s t e d a n n u a l r a t e s .
1987
1986
Account
1984
1985
1986
Q1
Q2
Q4
Q3
QL<
GROSS N A T I O N A L P R O D U C T
3,765.0
3
4
5
Gross private domestic investment
Fixed investment
7
8
Producers' durable equipment
Residential structures
10
11
Change in business inventories
Nonfarm
V
13
14
IS
16
Net exports of goods and services
17
18
19
Government purchases of goods and services
Imports
State and local
4,206.1
4,149.2
4,175.6
4,240.7
4,258.7
4,352.1
2,428.2
331.2
870.1
1,227.0
2,600.5
359.3
905.1
1,336.1
2,762.5
388.1
932.7
1,441.7
2,697.9
360.8
929.7
1,407.4
2,732.0
373.9
928.4
1,429.8
2,799.8
414.5
932.8
1.452.4
2,820.4
403.1
940.1
1,477.2
2,850.4
383.0
960.3
1,507.0
662.1
598.0
416.5
139.3
277.3
181.4
661.1
650.0
458.2
154.8
303.4
191.8
683.6
677.0
460.0
143.3
316.7
217.0
708.3
664.4
459.2
154.6
304.6
205.3
687.3
672.8
457.5
141.5
316.0
215.3
675.8
680.3
459.0
139.5
319.5
221.3
663.2
690.3
464.3
137.5
326.8
226.0
722.1
677.9
451.5
134.0
317.5
226.4
64.1
56.6
11.1
12.2
6.7
7.7
43.8
41.2
14.5
10.5
-4.5
-10.3
-27.1
-10.8
44.2
38.6
-58.7
382.7
441.4
-78.9
369.8
448.6
-104.3
373.0
477.3
-93.7
374.8
468.5
-104.5
363.0
467.5
-108.9
370.8
479.7
-110.2
383.5
493.7
-107.9
399.0
506.9
733.4
311.3
422.2
815.4
354.1
461.3
864.2
366.2
498.0
836.7
355.7
480.9
860.8
367.6
493.3
874.0
369.3
504.7
885.3
372.1
513.2
887.6
364.8
522.8
3,987.0
1,630.2
700.2
930.0
1,959.8
408.1
4,199.4
1.670.5
716.8
953.7
2,105.6
430.0
4,105.4
1,669.0
710.6
958.4
2,057.7
422.6
4,161.2
1.661.6
703.1
958.5
2,087.4
426.7
4,245.2
1,680.2
730.1
950.1
2,125.2
435.3
4,285.8
1,671.3
723.5
947.8
2,152.1
435.3
4,307.9
1,720.6
745.6
975.0
2.196.7
434.9
64.1
39.2
24.9
11.1
6.6
4.5
6.7
-1.0
7.7
43.8
28.6
15.3
14.5
-.1
14.6
-4.5
-15.6
11.1
-27.1
-16.9
-10.2
44.2
31.4
12.8
3,489.9
3,585.2
3,674.9
3,655.9
3,661.4
3,686.4
3,696.1
3,739.4
3,032.0
By source
consumption expenditures
Durable goods
Nondurable goods
Services
~> Personal
3,998.1
3,700.9
1,576.7
675.0
901.7
1,813.1
375.1
1
3,222.3
3,386.4
3,340.7
3,376.4
3,396.1
3,432.3
3,510.9
2,214.7
1,837.0
346.2
1,490.6
377.7
193.1
184.5
2,368.2
1,965.8
372.2
1,593.9
402.4
205.5
196.9
2,498.0
2,073.5
395.7
1,677.8
424.5
215.7
208.8
2,461.5
2,044.1
387.2
1,656.8
417.4
212.9
204.5
2,480.2
2,058.8
392.5
1,666.3
421.3
214.1
207.3
2,507.4
2,081.1
398.4
1,682.7
426.3
215.9
210.4
2,542.8
2,109.8
404.4
1.705.4
433.0
213.0
2.579.0
2,143.6
413.0
1,730.7
435.3
220.0
215.4
236.9
205.3
31.5
254.4
225.2
29.2
278.8
252.7
265.3
240.9
24.4
289.1
249.6
39.5
277.5
258.0
19.6
283.2
262.2
21.0
296.1
268.2
27.8
By major type of product
"><)
"1
>
">3
">4
25
?6
27
28
Structures
Change in business inventories
Durable goods
Nondurable goods
->9 M E M O :
Total GNP in 1982 dollars
N A T I O N A L INCOME
30
31
3">
33
34
35
36
37
Compensation of employees
38
39
40
Proprietors' income 1
Business and professional 1
Farm 1
Government and government enterprises
Other
Supplement to wages and salaries
Employer contributions for social insurance
Other labor income
26.1
220.1
41
Rental income of persons-
8.3
7.6
15.0
12.8
16.3
16.2
14.8
15.4
4?
43
44
45
Corporate profits 1
Profits before tax 3
Inventory valuation adjustment
Capital consumption adjustment
264.7
235.7
-5.5
34.5
280.7
223.2
-.6
58.1
299.7
237.5
6.5
56.6
296.4
222.5
16.5
57.3
293.1
227.7
10.6
54.8
302.0
240.4
55.5
311.2
259.6
-7.2
58.8
335.4
267.6
-6.9
74.7
46
Net interest
307.4
311.4
294.0
304.9
297,7
292.9
280.4
285.1
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
6.1
3. For a f t e r - t a x profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).
A44
2.17
Domestic Nonfinancial Statistics • August 1987
PERSONAL INCOME AND SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1987
1986
Account
1984
1985
1986
Ql
Q2
Q3
Q4
QK
PERSONAL INCOME A N D SAVING
1 Total personal income
3,110.2
3,314.5
3,485.7
3,432.6
3,483.3
3,498.8
3,527.9
3,587.9
2 Wage and salary d i s b u r s e m e n t s
3
C o m m o d i t y - p r o d u c i n g industries
4
Manufacturing
5
Distributive industries
6
Service industries
7
G o v e r n m e n t and g o v e r n m e n t e n t e r p r i s e s
1,836.8
577.8
439.1
442.2
470.6
346.2
1,966.1
607.7
460.1
469.8
516.4
372.2
2,073.5
623.2
471.2
487.9
566.7
395.7
2,044.1
622.0
470.5
485.2
549.6
387.2
2,058.8
620.8
468.8
484.3
561.3
392.5
2,081.1
621.8
470.0
488.3
572.6
398.4
2,109.8
628.3
475.4
493.9
583.2
404.4
2,143.6
633.1
477.9
500.7
596.9
413.0
184.5
236.9
205.3
31.5
8.3
74.7
446.9
455.6
235.7
196.9
254.4
225.2
29.2
7.6
76.4
476.2
487.1
253.4
208.8
278.8
252.7
26.1
15.0
81.2
475.0
513.8
266.8
204.5
265.3
240.9
24.4
12.8
79.1
480.8
504.7
263.2
207.3
289.1
249.6
39.5
16.3
81.1
480.1
510.1
264.1
210.4
277.5
258.0
19.6
16.2
82.0
473.8
518.5
269.6
213.0
283.2
262.2
21.0
14.8
82.7
465.2
521.8
270.2
215.4
296.1
268.2
27.8
15.4
84.1
470.7
530.3
273.7
8
9
10
11
12
13
14
15
16
17
O t h e r labor income
Proprietors' income1
Business and professional 1
Farm 1
Rental income of p e r s o n s 2
Dividends
Personal interest i n c o m e
Transfer pavments
O l d - a g e survivors, disability, and health insurance b e n e f i t s . . .
LESS: Personal c o n t r i b u t i o n s for social insurance
18 EQUALS: Personal income
133.5
150.2
160.3
158.6
159.5
160.8
162.4
167.7
3,110.2
3.314.5
3,485.7
3,432.6
3,483.3
3,498.8
3,527.9
3,587.9
439.6
486.5
514.1
497.5
504.8
519.0
534.9
533.0
20 EQUALS: Disposable personal i n c o m e
2.670.6
2.828.0
2.971.6
2,935.1
2,978.5
2,979.9
2,993.0
3.054.9
21
LESS: Personal o u t l a y s
2.501.9
2.684.7
2,857.4
2,789.4
2,825.5
2,895.8
2,918.8
2,948.4
22 EQUALS: Personal saving
168.7
143.3
114.2
145.6
153.1
84.1
74.2
106.5
14.721.1
9.475.4
10,421.0
6.3
14.982.0
9.713.7
10,563.0
5.1
15,216.9
10,015.3
10.773.0
3.8
15,188.0
9,857.1
10,723.0
5.0
15,178.9
9.984.4
10,886.0
5.1
15,245.6
10.124.0
10,776.0
2.8
15,247.9
10,089.9
10,708.0
2.5
15.394.8
10,040.3
10,762.0
3.5
573.3
551.5
538.7
583.2
539.7
517.2
514.9
569.5
674.8
168.7
91.0
-5.5
687.8
143.3
107.3
-.6
679.0
114.2
109.4
6.5
708.3
145.6
115.5
16.5
713.0
153.1
106.6
10.6
650.5
84.1
108.8
6.1
644.3
74.2
106.4
-7.2
689.7
106.5
115.2
-6.9
253.9
161.2
268.2
169.0
280.3
175.1
275.3
171.8
278.9
174.4
281.6
176.0
285.5
178.2
287.3
180.7
-101.5
-170.0
68.5
-136.3
-198.0
61.7
-140.3
-203.3
63.1
-125.1
-195.0
69.9
-173.3
-232.2
58.9
-133.3
-197.4
64.0
-129.4
-188.8
59.4
-120.3
-170.4
50.2
19
LESS: Personal tax and n o n t a x p a y m e n t s
MEMO
Per capita (1982 dollars)
23
G r o s s national p r o d u c t
24
Personal c o n s u m p t i o n e x p e n d i t u r e s
25
Disposable personal income
26 Saving rate ( p e r c e n t !
GROSS S A V I N G
27 Gross saving
28
29
30
31
G r o s s private saving
Personal saving
Undistributed c o r p o r a t e profits'
C o r p o r a t e inventory valuation a d j u s t m e n t
Capital consumption
32 C o r p o r a t e
33 N o n c o r p o r a t e
34
35
36
allowances
G o v e r n m e n t surplus, or deficit (-), national income and
product accounts
Federal
State and local
571.4
37 Gross investment
38 G r o s s private d o m e s t i c
39 Net foreign
545.9
541.7
579.6
544.3
527.5
515.5
580.7
662.1
-90.7
661.1
-115.2
683.6
-141.9
708.3
-128.6
687.3
-143.0
675.8
-148.3
663.2
-147.7
722.1
-141.4
-1.9
-5.5
3.0
-3.6
4.6
10.3
.6
11.2
40 Statistical discrepancy
1. With inventory valuation and capital c o n s u m p t i o n a d j u s t m e n t s .
2. With capital c o n s u m p t i o n a d j u s t m e n t .
SOURCE. Survey
of Current
Business
( D e p a r t m e n t of C o m m e r c e ) .
Summary
3.10
U.S. INTERNATIONAL TRANSACTIONS
Statistics
A53
Summary
M i l l i o n s of d o l l a r s ; q u a r t e r l y d a t a a r e s e a s o n a l l y a d j u s t e d e x c e p t a s n o t e d . 1
1987
1986'
1984'
Item credits or debits
1985'"
1986'
QI
Q2
Q3
Q4
QI"
1 Balance on current account
-107.013
-116,394
-141,352
-33,040
-30,090
-33,755
-34,634
-36,583
-40,230
-37,977
-36,398
-37,122
-33,866
3
4
-112,522
219,900
-332,422
-1,942
18,490
1,138
-122.148
215,935
-338,083
-3.338
25,398
-1.005
-144,339
224,361
-368,700
-3,662
20,844
1,463
-34,978
53,878
-88,856
-1,298
6,425
-168
-33,651
56,928
-90,579
-1,054
4,587
530
-37,115
56,534
-93,649
-815
5.339
342
-38,595
57,021
-95,616
-495
4,492
759
-38,330
58,212
-96,542
198
3,836
264
-3,637
-8,541
-4.079
-11.222
-3,885
-11.772
-943
-2,078
-918
-3,249
-875
-3,459
-1,151
-2,987
-993
-2,097
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )
-5,476
-2.831
-1.920
-240
-242
-1,454
15
219
12 Change in U.S. official reserve assets (increase, - )
13
Gold
14
Special drawing rights (SDRs)
15
Reserve position in International Monetary Fund
Foreign currencies
16
-3,130
0
-979
-995
-1,156
-3,858
0
-897
908
-3,869
312
0
-246
1,500
-942
-115
0
-274
344
-185
16
0
-104
366
-246
280
0
163
508
-391
132
0
-31
283
-120
1,956
17 Change in U.S. private assets abroad (increase, - )
18
Bank-reported claims
19
20
U.S. purchase of foreign securities, net
21
U.S. direct investments abroad, net
-13,685
-11,127
5,019
-4,756
-2,821
-24,711
-1,323
1,361
-7.481
-17,268
-94,374
-59,039
-3,986
-3,302
-28,047
-13,415
6.373
-2,947
-5,886
-10,955
-25,303
-14.734
-1,894
-1,149
-7,526
-23,304
-18,878
685
620
-5.731
-32,351
-31.8(H)
170
3.113
-3,834
-1,317
-9,968
23
24
25
26
27
22 Change in foreign official assets in the United States
(increase, +)
U.S. Treasury securities
Other U.S. government obligations
Other U.S. government liabilities 4
Other U.S. liabilities reported by U.S. banks
Other foreign official assets-
2.987
4.690
13
586
555
-2,857
-1,140
-838
-301
823
645
-1.469
34,698
34,515
-1,214
1,723
554
-880
2,576
3,238
-177
406
-1,254
363
15,568
14,538
-644
925
1.280
-531
15,551
12.167
-276
999
2,963
-302
1,003
4,572
-117
-607
-2.435
-410
14,123
11,999
-51
-1,421
3,964
-368
28 Change in foreign private assets in the United States
(increase, -t-)3
29
U.S. bank-reported liabilities
30
31
Foreign private purchases of U.S. Treasury securities, net .
32
Foreign purchases of other U.S. securities, net
Foreign direct investments in the United States, net
33
99,481
33,849
4,704
23,001
12,568
25,359
131,012
41,045
-450
20.433
50.962
19,022
178,689
77,350
-2.791
8,275
70,802
25,053
33,746
8,487
-2,193
7.035
18,571
1,846
33,475
3,899
-1,553
3,705
22,888
4,536
54,040
30,360
-80
609
17,074
6,077
57,428
34,604
1,035
-3.074
12,269
12,594
13.435
-13,836
0
0
17,920
0
0
0
23.947
0
10,488
2,294
0
26,837
10,241
-2,044
-8,530
-4,153
11,750
3,904
0
-9,128
2.749
26,837
17,920
23.947
8,194
12,285
-4.377
7,846
-11,877
-3,130
2,401
-3,858
-1,963
312
32,975
-115
2,170
16
14,643
280
14.552
132
1,610
1,956
15,544
-4,504
-6,709
-8,508
1,876
-2,166
-3.023
-5,195
-2,941
153
46
101
19
11
19
53
10
6
7
8
9
10
Merchandise trade balance"
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net 3
Other service transactions, net
Remittances, pensions, and other transfers
U.S. government grants (excluding military)
34 Allocation of SDRs
35 Discrepancy
36
37
Statistical discrepancy in recorded data before seasonal
adjustment
0
76
606
1,274
16,517
27.802
5,445
18.454
3,372
MEMO
Changes in official assets
38
U.S. official reserve assets (increase, - )
39
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)
1. Seasonal factors are not calculated for lines
38-41.
2. Data are on an international accounts (1A)
basis data, shown in table 3.11, for reasons of
exports are excluded from merchandise data and
3. Includes reinvested earnings.
6, 10, 12-16, 18-20, 22-34, and
basis. Differs from the Census
coverage and timing; military
are included in line 6.
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 1987
U.S. FOREIGN TRADE
Millions of dollars; monthly data are not seasonally adjusted.
1986
Item
1983
1984
1987
1985
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
19.330
18.595
18,431
16.421
18,660
21.064
20.141
1
E X P O R T S of domestic and foreign
merchandise excluding grant-aid
shipments
200,486
217,865
2
G E N E R A L IMPORTS including
merchandise for immediate
consumption plus entries into
bonded warehouses
258.048
325.726
345.276
30.018
36.187
27.795
27,466
32.307
33.197'
31.983
Trade balance
-57,562
107,861
-132,129
-10,688
-17,592
-9,364
-11,045
-13,647
12,134
-11,842
3
213.146
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 " s e r v i c e
a c c o u n t " 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. As of
Jan. 1. 1987 census data are released 45 days after the end of the month.
SOURCE. FT900 " S u m m a r y of U.S. Export and Import Merchandise T r a d e "
(Department of Commerce. Bureau of the Census).
U.S. RESERVE ASSETS
Millions of dollars, end of period
1986
Type
1983
1984
1987
1985
Nov.
Jan.
Feb.
Mar.
Apr.
May''
33,747
1
Total
2
Gold stock, including Exchange
Stabilization Fund 1
3
Special drawing rights 2
4
Reserve position in International
Monetarv Fund"
5
Foreign currencies 4
3
34,934
43,186
47,824
48,517
49,386
49,358
48,824
46,591
45,920
11,121
11,096
11,090
11,070
11.064
11.062
11,085
11.081
11.076
11.070
5,025
5,641
7,293
8.310
8.395
8.470
8.615
8,740
8,879
8.904
11,312
11,541
11.947
11.659
11.730
11,872
11,699
11.711
11,745
11.524
6.289
6.656
12,856
16.785
17,328
17,982
17,959
17.292
14.891
14.422
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 tine 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
Dec.
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
1986
Assets
1983
1984
Nov.
1 Deposits
Assets held in custody
2 U.S. Treasury securities 1
3 Earmarked gold"
Dec.
Jan.
Feb.
Mar.
Apr.
May
190
267
480
224
287
226
255
268
342
319
117,670
14.414
118.000
14.242
121.004
14,245
156.919
14.057
155,835
14,048
159.597
14.041
160,942
14,046
167,423
14,036
172,929
14.031
175.849
14,031
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 tine troy ounce.
1987
1985
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
3.14
FOREIGN BRANCHES OF U.S. BANKS
Statistics
A55
Balance Sheet Data1
M i l l i o n s of d o l l a r s , e n d o f p e r i o d
1987
1986
1V53
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.P
All foreign countries
477,090
1 Total, all currencies
1 Claims on United States
3
Parent bank
4
Other banks in United States 2
5
Nonbanks 2
6 Claims on foreigners
7
Other branches of parent bank
8
Banks
9
Public borrowers
Nonbank foreigners
10
1
458,012
446,581
446,618
456,628
458,305
457,819
456,655
484,827
113.393
78,109
13,664
21,620
320.162
95,184
100,397
23,343
101,238
119,706
87,201
13,057
19,448
315,676
91,399
102,960
23,478
97.839
112,078
79.999
11,659
20,420
305,562
90.412
100,707
24.215
90.228
108,420
76,280
12,034
20,106
308,322
91,576
103,293
23,314
90,139
113,178
81,985
13,685
17,508
314,340
97,788
105,237
23,584
87,731
115,273
83,185
12,723
19,365
311,411
93,290
105,377
23,337
89,407
113,815
81,953
13,158
18,704
312,096
90.326
109,748
23.192
88,830
111,865
81,325
13,044
17,496
311,599
89,200
109,580
23,579
89,240
127,643
93,414
15,189
19,040
322,390
93,288
116,057
23,483
89,562
342,689
96,004
117,668
24,517
107,785
18,859
22,630
28,941
29,876
29,110
31.621
31.908
33,191
34,794
350,636
336,520
309,087
306,683
317,487 r
309,719
311,669
306,079
328,920
113,436
80,909
247.406
78,431
93,332
17,890
60,977
111,426
77,229
13.500
20,697
228.600
78.746
76.940
17,626
55,288
116,638
85,971
12.454
18,213
210,129
72,727
71.868
17,260
48,274
107,612
78,335
10,544
18,733
190,030
67.835
62,836
17,455
41,904
104.281
74,762
10,986
18,533
190,656
67,841
64,920
16,820
41,075
109,235'
80,575
12,830
15,830
196,448
73,704
66,421
16,586
39,737
110,596
81,423
11,531
17,642
187,296
67,479
63.637
16,459
39,721
109.341
80,359
12,102
16,880
189,875
65,220
68.320
16,320
40,015
107,016
79.465
11,907
15,644
185,418
63,983
65,997
16,224
39,214
121,852
91,459
13,380
17,013
192,802
66,535
70,304
16,512
39,451
10.666
12 Total payable in U.S. dollars
20,101
371,508
11 Other assets
n Claims on United States
14
Parent bank
15
Other banks in United States 2
16
Nonbanks 2
17 Claims on foreigners
18
Other branches of parent bank
19
Banks
20
Public borrowers
21
Nonbank foreigners
453,656
115,542
82.026
10,610
9,753
11,445
11,746
11,804
11,827
12,453
13,645
14,266
1
22 Other assets
United Kingdom
158,732
23 Total, all currencies
24 Claims on United States
25
Parent bank
76
Other banks in United States 2
77
Nonbanks 2
28 Claims on foreigners
29
Other branches of parent bank
30
Banks
31
Public borrowers
Nonbank foreigners
32
33 Other assets
34 Total payable in U.S. dollars
35 Claims on United States
36
Parent bank
37
Other banks in United States 2
38
Nonbanks 2
39 Claims on foreigners
40
Other branches of parent bank
41
Banks
42
Public borrowers
Nonbank foreigners
43
44 Other assets
1
144,385
148,599
142,398
143,806
140,917
144,093
146,188
145,486
149,998
34,433
29,111
27,675
21.862
1.429
4,384
111,828
37,953
37.443
5,334
31,098
33,157
26,970
1,106
5.081
110,217
31,576
39,250
5,644
33,747
30,747
24,800
1,314
4,633
105,534
31,268
37,836
5,157
31,273
28,940
22,671
1,534
4,735
108.153
29,966
41,145
5,038
32,004
24,599
19,085
1,612
3,902
109,508
33,422
39,468
4,990
31,628
28,720
23,330
1,220
4,170
108,720
30,218
40,677
4,942
32,883
28,851
23.326
1,258
4,267
110,274
29,575
43,189
4,983
32,527
28,503
23,303
1,288
3,912
109,297
28,782
42,537
4,897
33.081
31,001
25,315
1,564
4,122
111,113
29,555
43,369
4,964
33,225
119,280
36.565
43.352
5,898
33.465
5,019
4,882
5,225
6,117
6,713
6,810
6,653
7,063
7.686
7,884
126,012
112,809
108,626
97,295
97,125
95,028
95,359
97,568
95,319
99,398
33,756
28,756
88,917
31,838
32,188
4,194
20,697
26,868
21,495
1,363
4,010
82,945
33,607
26,805
4,030
18,503
32,092
26.568
1,005
4,519
73.475
26.011
26.139
3.999
17,326
29,312
24,323
1.110
3,879
64,873
24,632
21.011
3,859
15,371
27,564
22,106
1,364
4,094
66,304
23,229
24,020
3,811
15,244
23,193
18.526
1,475
3,192
68,138
26,361
23,251
3,677
14,849
27,070
22,673
996
3.401
65,022
22,720
23,656
3,683
14,963
27,290
22,749
1,061
3,480
66,872
22.578
25,685
3,716
14,893
26,665
22,662
980
3,023
64,466
21.785
24,225
3,660
14,796
29,066
24,689
1,192
3,185
66,257
21.958
25,370
3,712
15,217
3.339
2,996
3,059
3,110
3,257
3,697
3,267
3,406
4,188
4,075
Bahamas and Caymans
45 Total, all currencies
46 Claims on United States
47
Parent bank
48
Other banks in United States 2
49
Nonbanks 2
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
152,083
146,811
142,055
134,060
131,363
142,592
135,627
133,229
133,837
146,437
75,309
48,720
77.296
49,449
11,544
16,303
65,598
17,661
30,246
6,089
11,602
74,864
50,553
11.204
13,107
63.882
19.042
28,192
6.458
10.190
68,624
44,476
9,557
14,591
59,612
16,985
26,205
7.263
9,159
66,078
42,223
9,628
14,227
59,436
18,139
25,743
6,697
8,857
76,663
53,068
11,156
12,439
61,390
18,803
27,476
6,929
8,182
72,643
48,036
10,625
13,982
57,825
16,258
26,366
7,026
8,175
68,238
44,124
10,924
13,190
59,671
16,151
28,139
6,974
8,407
67,357
41,150
10,855
12,352
60,643
16,529
28,568
6,915
8.631
77,822
51,747
12,561
13,514
62,857
16,562
31,005
7,120
8.170
72,868
20,626
36,842
6,093
12,592
3,906
3.917
3,309
5,824
5,849
4,539
5,159
5,320
5,837
5,758
145,641
141,562
136,794
127,361
124,801
136,813
129,474
126,605
126,808
138,445
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 1987
Continued
1986
Oct.
Nov.
1987
Dec.
Jan.
Feb.
Mar.
Apr.''
All foreign countries
57 Total, all currencies
477,090
453,656
458,012
446,581
446,618
456,628
458,305
457,819
456,655
484,827
58 Negotiable C D s '
59 To United States
60
Parent bank
61
Other banks in United States
62
Nonbanks
n.a.
188.070
81,261
29,453
77.356
37,725
147,583
78,739
18.409
50.435
34,607
155.538
83.914
16.894
54,730
32.444
141,126
75,777
14,791
50,558
32.926
137.029
75.062
14,532
47,435
31.629
151.632
82.561
15.646
53.425
33,395
140,089
70,047
15,068
54,974
36,074
140,046
73,095
13,602
53,349
34,873
141,341
70,866
13,695
56,780
33,155
152,447
74,772
16,913
60,762
63 To foreigners
64
Other branches of parent bank
65
Banks
66
Official institutions
67
Nonbank foreigners
68 Other liabilities
269,685
90.615
92,889
18,896
68.845
19.335
247,907
93.909
78.203
20.281
55,514
20.441
245.939
89.529
76.814
19,520
60,076
21,928
253,202
87.883
80.709
19,436
65.174
19.809
256,611
87,993
83,784
18,831
66,003
20,052
253.775
95.146
77,809
17.835
62.985
19,592
264.463
90,303
89,199
19.532
65,429
20,358
261,944
88,524
86.474
19,818
67.128
19.755
260,585
87,867
84,976
20.591
67.151
19,856
277,918
94,559
92.647
21,293
69,419
21,307
69 Total payable in U.S. dollars
388,291
367,145
353,712
323,699
320,348
336,406
323,900
325,951
321,354
340,161
70 Negotiable C D s '
71 To United States
72
Parent bank
Other banks in United States
73
74
Nonbanks
n.a.
184,305
79,035
28,936
76,334
35.227
143.571
76,254
17,935
49.382
31.063
150.162
80.888
16.264
53.010
29,206
133.301
71,858
13,768
47,675
29,752
129,224
71.017
13,679
44.528
28,466
143,650
78,472
14.609
50.569
29.921
131.557
65,419
14,047
52,091
32.407
131,617
68,540
12,505
50.572
31.148
132,413
65,755
12.593
54,065
29,505
141.126
68,064
15,455
57,607
75 To foreigners
76
Other branches of parent bank
77
Banks
78
Official institutions
79
Nonbank foreigners
80 Other liabilities
194,139
73,522
57,022
13,855
51,260
9,847
178.260
77,770
45.123
15,773
39.594
10,087
163.583
71,078
37.365
14,359
40.781
8.904
153,536
65.077
33.802
13.320
41.337
7,656
153.972
64,178
35,306
13.139
41.349
7,400
156.806
71,181
33,850
12,371
39,404
7.484
155,182
64,380
37,159
13,688
39,955
7,240
154,343
63.272
37,253
13.189
40,629
7,584
149,949
62,172
35,116
13,392
39,269
7,844
161,216
67,278
39,111
14.318
40,509
8,314
United Kingdom
81 Total, all currencies
158,732
144,385
148,599
142,398
143,806
140,917
144,093
146,188
145,486
149,998
82 Negotiable CDs 1
83 To United States
84
Parent bank
85
Other banks in United States
86
Nonbanks
n.a.
55,799
14,021
11.328
30,450
34,413
25,250
14.651
3.125
7.474
31,260
29,422
19.330
2.974
7.118
28,847
24.610
14,014
2,382
8.214
28,984
22,585
13.811
2,184
6.590
27,781
24,657
14,469
2,649
7,539
29,432
19.465
10.004
2.154
7,307
32.233
22,501
12,735
2.154
7,612
30,968
21,433
12,332
1,816
7,285
29,311
23,967
13,201
2,205
8.561
87 To foreigners
88
Other branches of parent bank
89
Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities
95.847
19,038
41,624
10,151
25,034
7,086
77.424
21.631
30,436
10,154
15,203
7.298
78.525
23.389
28,581
9,676
16.879
9.392
80.252
24,194
31.001
8.068
16.989
8.689
83,455
23,739
34,321
7.875
17.520
8,782
79,498
25,036
30,877
6,836
16,749
8.981
86,229
23.595
36,479
8,484
17,671
8,967
82,418
21,230
35,434
7,832
17,922
9,036
83.723
21,371
35,971
7,827
18,554
9.362
87,350
22,390
37.562
8.871
18.527
9.370
93 Total payable in U.S. dollars
131,167
117,497
112,697
99,820
99,327
99,707
98,741
101,603
98,967
101,793
94 Negotiable CDs 3
95 T o United States
96
Parent bank
97
Other banks in United States
Nonbanks
98
n.a.
54,691
13,839
11,044
29.808
33,070
24,105
14,339
2,980
6.786
29,337
27.756
18,956
2,826
5.974
26.927
21.960
13.591
2.108
6.261
27,166
20,055
13,438
1.880
4,737
26,169
22,075
14,021
2,325
5,729
27.701
16.829
9,451
1,887
5,491
30,175
19.894
12,157
1.926
5,811
28,868
18,940
11,606
1,602
5,732
27.189
21,144
12,352
2,021
6,771
99 To foreigners
100
Other branches of parent bank
101
Banks
102
Official institutions
Nonbank foreigners
103
104 Other liabilities
73.279
15.403
29,320
8,279
20,277
3.197
56.923
18.294
18,356
8,871
11.402
3.399
51,980
18,493
14.344
7,661
11.482
3.624
47,491
17.289
14.123
5,685
10.394
3.442
49,056
16,695
15.984
5,655
10,722
3,050
48,138
17.951
15.203
4.934
10,050
3,325
51.174
16,386
18.626
6.096
10,066
3.037
48,242
14,323
18,207
5.176
10,536
3.292
47,531
14,471
18.027
4,924
10,109
3,628
49.708
14.367
19,498
5,786
10,057
3,752
Bahamas and Caymans
105 Total, all currencies
152,083
146,811
142,055
134,060
131,363
142,592
135,627
133,229
133,837
146,437
106 Negotiable C D s '
10/ To United States
Parent bank
108
109
Other banks in United States
Nonbanks
110
n.a.
111.299
50,980
16,057
44.262
615
102.955
47,162
13,938
41,855
610
103.813
44.811
12.778
46,224
683
95.840
43.470
11.144
41.226
784
94,493
43,572
11,131
39,790
847
105.248
48,648
11,715
44,885
995
98.733
40,845
11,687
46,201
855
95,221
40,409
10,151
44,661
813
98,560
39,625
10,568
48,367
883
107,028
42.976
13,345
50,707
38.445
14.936
11.876
1.919
11,274
2,339
40,320
16,782
12.405
2.054
9.079
2,921
35.053
14.075
10.669
1.776
8.533
2.579
35.427
13.574
8.964
2.665
10.224
2.110
33,841
12,661
8,545
2,577
10,058
2,245
34,400
12,631
8.617
2.719
10,433
2,097
33,831
12,323
8.402
2.808
10,298
2,068
35,053
12,972
8,507
3.013
10,561
2.100
32.501
11,673
8,140
2.836
9,852
1,963
36.491
13,891
9,452
2,937
10,211
2,035
148,278
143,582
138,322
130.084
127,309
138,774
131,572
129,183
129,048
140,457
111 To foreigners
Other branches of parent bank
112
Banks
113
114
Official institutions
115
Nonbank foreigners
116 Other liabilities
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
3.15
Statistics
A57
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1986'
Item
1984'
1987
1985'
Oct.
1 Total 1
2
3
4
6
7
X
9
10
11
12
Dec.
Jan.'
Feb.'
Mar.
Apr.''
180,348
By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries 6
178,380
211,293
211,117
211,350
213,362
215,240
227,039
234,192
26,090
59,976
26,734
53,252
27.392
75.457
27.777
75,132
27,288
75,650
27.593
75.718
29,184
75,434
31,252
79,629
32,064
83.640
69,019
5,800
19,463
77,154
3,550
17,690
91.092
1.3(H)
16.052
91,225
1.3(H)
15,683
91,520
1.3(H)
15,592
93.018
1.3(H)
15,733
93,852
1.3(H)
15,470
99,689
1.3(H)
15,169
102,055
1.3(H)
15,133
69,818
1,528
8,565
93.701
1,263
5,472
BY type
Liabilities reported by banks in the United States"
U.S. Treasury bills and certificates 3
U.S. Treasury bonds and notes
Marketable
Nonmarketable 4
U.S. securities other than U.S. Treasury securities 5
74.447
1.315
11.148
86.448
1,824
3,199
88.714
1.699
10.146
105.350
1.717
3.667
87,799
1.892
9.096
105,509
1.545
5,276
87,937
2,(H)4
8,368
106,023
1,503
5,515
89.630
3,383
7,681
107.448
1.3(H)
3.922
90,645
3,761
7.426
108.886
1.164
3,358
99.732
5,110
8,242
108,642
1,192
4,123
103.647
3.941
9.407
110,240
1,284
5,671
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
Nov.
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
1987''
1986
Item
1982
1983
1984
June
1 Banks' own liabilities
Banks' own claims
3
4
Other claims
5 Claims of banks' domestic customers 1
5,219
7,231
2,731
4,501
1,059
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 the domestic customers.
8.586
11,984
4,998
6,986
569
15,368
16,294
8,437
7,857
580
Sept.
Dec.
Mar.
24.130
21,264
11.413
9,851
1,385
29,353
24,567
13,716
10,851
1,659
29,481
25,441
13,359
12,083
2,613
36.436
31.748
13.929
17.819
2,120
NOTE. Data on claims exclude foreign currencies held by U.S. monetary
authorities,
A58
3.17
International Statistics • August 1987
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Reported by Banks in the United States
M i l l i o n s of d o l l a r s , e n d of p e r i o d
1986
Holder and type of liability
1983
1984
1987
1985
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr."
1 All foreigners
369,607
407,306
435,726
501,095
512,653
537,778
524,912
521,876'
523,696
549,252
2 Banks' own liabilities
3
Demand deposits
4
Time deposits'
Other 2
6
Own foreign offices 3
279,087
17,470
90,632
25,874
145,111
306,898
19,571
110,413
26,268
150,646
341,070
21,107
117.278
29,305
173,381
365.956
21,730
123.752
36.332
184.142
378,023
24.772
125,618
35,915
191,718
404,395
23,786
131,281
40,545
208,782
391,417
22,492
125.010
39,373
204,543
387,376'
22,448
125,364'
40,302'
199,263'
388,481
22,273
124.436
42,216
199,555
410,133
22,541
132,338
44,690
210,564
90.520
68.669
100,408
76,368
94,656
69,133
135,139
91.305
134.630
90.351
133,383
90,257
133,495
89,278
134,500
90,695
135,216
93,048
139,118
97.489
17,467
4,385
18,747
5,293
17,964
7.558
15,649
28.184
15,343
28,936
16,523
26,603
14,656
29.561
13,839
29,966
14,881
27,287
14,623
27,006
11 Nonmonetary international and regional
organizations7
5,957
4,454
5,821
3,902
4,315
4,826
5,081
4,520
3,739
6,830
12 Banks' own liabilities
13
Demand deposits
14
Time deposits'
15
Other 2
4,632
297
3,584
750
2,014
254
1,267
493
2,621
85
2,067
469
2.426
175
1939
312
2,944
135
2,299
511
2,977
199
2,166
611
3.732
183
2.515
1,034
2,193
157
1.488
548
2,360
246
1,230
883
5,236
159
3,100
1,977
16 Banks' custody liabilities 4
17
U.S. Treasury bills and certificates
18
Other negotiable and readily transferable
instruments 6
19
Other
1,325
463
2,440
916
3,200
1,736
1.476
308
1,371
262
1,849
259
1,349
86
2,326
1,213
1,379
154
1,594
428
862
0
1,524
0
1,464
0
1.162
6
1,104
5
1.590
0
1,261
2
1,112
1
1,225
0
1,152
14
20 Official institutions8
79,876
86,065
79,985
102,849
102,909
102,938
103,311
104,618'
110,882
115,705
21 Banks' own liabilities
22
Demand deposits
23
Time deposits 1
24
Other 2
19,427
1,837
7,318
10,272
19,039
1,823
9,374
7,842
20,835
2,077
10,949
7.809
24.268
1.840
10.593
11.835
25,165
2.188
11.271
11,706
24,796
2,267
10,577
11,952
25.367
1,487
11,311
12,569
26,626'
1,513
11,385
13,728''
27,991
1,923
11,056
15,011
29,078
1,979
12,362
14,736
25 Banks' custody liabilities 4
26
U.S. Treasury bills and certificates 5
27
Other negotiable and readily transferable
instruments 6
28
Other
60,448
54,341
67,026
59,976
59,150
53,252
78.581
75.457
77,744
75,132
78,142
75,650
77,944
75,718
77,992
75,434
82,891
79.629
86,627
83,640
6.082
25
6,966
84
5,824
75
2.920
204
2,480
132
2,347
145
2,158
69
2,418
140
3.129
132
2,832
154
29 Banks'
226,887
248,893
275,589
314,433
325,392
349,605
339,131
335,083'
333,332
348,621
30 Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
33
Time deposits'
34
Other 2
35
Own foreign offices 3
205,347
60.236
8,759
37,439
14,038
145.111
225,368
74,722
10,556
47,095
17,071
150,646
252,723
79,341
10,271
49,510
19,561
173.381
271.790
87.648
9.714
55.601
22.333
184.142
282,785
91,067
11,626
57,515
21,927
191,718
309,792
101,010
10,301
64,480
26,229
208,782
296,436
91,893
10,432
57.772
23,689
204,543
292,675'
93,412'
10.102'
59.680'
23,630'
199,263'
294,185
94,630
9,509
61,267
23,854
199,555
310,238
99,674
9,779
64,750
25.145
210.564
36 Banks' custody liabilities 4
37
U.S. Treasury bills and certificates
38
Other negotiable and readily transferable
instruments 6
39
Other
21,540
10,178
23,525
11,448
22,866
9,832
42.643
10.601
42,607
10,491
39,812
9.962
42,695
9,826
42,408
10,486
39,147
9,744
38,383
9.527
7,485
3,877
7,236
4,841
6,040
6,994
5.600
26.442
5,550
26,566
5,513
24,338
5,433
27.436
4.340
27.582
4,377
25,026
4,271
24,586
40 Other foreigners
56,887
67,894
74,331
79,911
80,037
80,411
77,389
77,656'
75,744
78,095
41 Banks' own liabilities
42
Demand deposits
43
Time deposits
44
Other 2
49,680
6,577
42,290
813
60,477
6,938
52,678
861
64.892
8.673
54.752
1,467
67.472
10.000
55.620
1.852
67,129
10,824
54,533
1.772
66,830
11.019
54,059
1,752
65,882
10,389
53,412
2,081
65,882'
10,676'
52,811'
2,395
63,945
10,594
50,883
2,468
65.582
10,624
52,126
2,831
7,207
3,686
7,417
4,029
9,439
4,314
12.439
4,939
12,908
4,465
13.580
4,387
11,507
3,648
11.774
3,563
11,798
3,520
12,514
3,894
3.038
483
3,021
367
4,636
489
5.968
1.532
6,209
2,234
7.074
2.120
5,804
2,055
5,969
2.242
6,150
2,128
6,368
2,252
10,346
10,476
9,845
6.759
6,609
7,343
7.191
7,722
7,694
7.925
7 Banks' custody liabilities 4
8
U.S. Treasury bills and certificates 5
9
Other negotiable and readily transferable
instruments 6
10
Other
45 Banks' custody liabilities 4
46
U.S. Treasury bills and certificates
47
Other negotiable and readily transferable
instruments 6
48
Other
49 MEMO: Negotiable time certificates of deposit in
custody for foreigners
1. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
2. Includes borrowing under repurchase agreements.
3. U.S. banks: includes amounts due to own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due to head office or parent foreign bank, and
foreign branches, agencies or wholly owned subsidiaries of head office or parent
foreign bank.
4. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.
5. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks.
8. Foreign central banks and foreign central governments, and the Bank for
International Settlements.
9. Excludes central banks, which are included in "Official institutions."
Nonbank-Reported
3.17
Data
Continued
1987
1986
Area and country
1983
1984
1985
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.''
1 Total
369,607
407,306
435,726
501,095
512,653
537,778
524,912
521,876'
523,696
549,252
2 Foreign countries
363,649
402,852
429,905
497,193
508,338
532,953
519,831
517,356'
519,957
542,421
138,072
585
2,709
466
531
9,441
3,599
520
8,462
4,290
1,673
373
1,603
1,799
32,246
467
60,683
562
7,403
65
596
153,145
615
4.114
438
418
12,701
3,358
699
10,762
4,731
1,548
597
2,082
1,676
31,740
584
68,671
602
7,192
79
537
164.114
693
5,243
513
496
15,541
4,835
666
9,667
4,212
948
652
2,114
1,422
29.020
429
76,728
673
9.635
105
523
173,578
972
6,070
478
606
21.243
6,624
646
8,807
4,858
654
738
2,297
1,016
29,695
401
84.308
515
3,141
25
484
176,077
1,197
6,863
576
448
21,917
5,856
755
9,304
4,410
512
685
2,197
1.301
30,406
418
84,913
544
3.308
16
452
180,521
1,186
6,788
485
580
22,849
5,688
706
10,866
5,558
745
700
2,393
889
31,239
454
85,336
631
2,705
23
702
179,104
972
6,729
449
565
21,372
6,813
745
9,374
5,075
678
657
2,238
884
28,886
375
87,871
554
4,309
21
535
180,641'
928'
7,583'
520
762
22,654''
5,797''
749
8,489'
5,224''
554
709
2,333'
1.062
27,555''
359
89,905'
565
4.322'
23
546
182,075
790
7,210
618
925
23,805
7,406
641
10,088
4.894
490
688
2,192
1,052
27,569
412
88,049
564
3,982
30
669
189,551
1,064
7,923
425
930
27,376
6,302
601
10,331
5,962
572
660
2,205
1,344
26,468
833
90,950
521
4.280
32
771
3 Europe
Austria
4
Belgium-Luxembourg
5
Denmark
6
7
Finland
8
France
9
Germany
10
Greece
11
Italy
Netherlands
1?
13
Norway
14
Portugal
Spain
15
1(S
Sweden
17
Switzerland
18
Turkey
19
United Kingdom
Yugoslavia
70
Other Western Europe 1
71
U.S.S.R
77
Other Eastern E u r o p e 23
16,026
16,059
17,427
24.340
25,753
26,256
26,072
25,116'
26.523
25.253
140,088
4,038
55,818
2,266
3,168
34,545
1,842
1,689
8
1,047
788
109
10,392
3,879
5,924
1,166
1,244
8,632
3,535
153,381
4,394
56,897
2,370
5,275
36,773
2,001
2,514
10
1,092
896
183
12,303
4,220
6,951
1,266
1,394
10.545
4,297
167,856
6,032
57,657
2.765
5,373
42,674
2,049
3,104
11
1,239
1,071
122
14,060
4,875
7.514
1.167
1,552
11,922
4,668
191,916
5.718
64.106
1,918
8.895
59.143
2,398
3,775
6
1.217
1.126
151
13.209
4.645
6,524
1.167
1.608
11,392
4,917
189,773
5,202
62,613
2,549
4,684
61,855
2,325
3,873
6
1,199
1.129
153
13,488
4,706
6,729
1,146
1,610
11,592
4,914
208,057
4,754
72,347
2,965
4,321
70,918
2,053
4,281
7
1.235
1,122
136
13,631
4,903
6,865
1,163
1,537
10,452
5,368
195,263
4,497
64,945
2,295
3,813
66,470
2,208
4,293
6
1,049
1,124
149
13,484
5,570
7,361
1,110
1,609
10,494
4,768
191.441'
4.668
62,968
2,392
3,797''
65,504'
2,046
4,268''
7
1,120'
1,081
145
13,363'
5,629
6,484'
1,131'
1,583
10,362'
4,894
195,025
4,756
62,390
2,281
3,692
69,748
2,060
4,271
6
1,014
1.082
230
13,094
5,643
6,670
1,062
1,630
10.365
5,031
206,208
4,461
71,562
2,162
3,713
68,983
2,252
4,373
6
1,044
1,164
149
14,963
5,781
7,125
1,086
1,540
10,562
5,280
58,570
71,187
72,280
99,360
107,054
108,973
112,054
113,433'
108,879
112,554
249
4.051
6,657
464
997
1,722
18,079
1,648
1,234
747
12,976
9,748
1,153
4,990
6,581
507
1,033
1,268
21,640
1,730
1,383
1,257
16,804
12,841
1,607
7,786
8,067
712
1,466
1,601
23,077
1,665
1,140
1,358
14,523
9,276
1,585
16.534
8,663
755
1.530
1,986
41.340
1,446
1,707
1,115
12,045
10,654
1,450
17,540
9,347
701
1,528
2,380
46,184
1,128
1,720
1,083
13.010
10.984
1,476
18,903
9,517
673
1,548
1,890
47,436
1,146
1,865
1,120
12,356
11,042
2.046
19,553
9,383
664
1,410
1,761
49,997
1,063
1,811
1,282
12,325
10,760
1,625'
21,127
9,328'
686
1,591
1,892
50,920
1,022
1,779
1,224
12.129'
10,110'
1,948
20,131
9,160
500
1,377
1,666
48,971
1,134
1,737
1.235
11.576
9,443
1,889
19,451
9,334
523
1,460
1,451
53,132
1,172
1,426
1.131
11,393
10,191
57 Africa
Egypt
58
59
Morocco
60
South Africa
61
Zaire
Oil-exporting countries
67
Other Africa
63
2,827
671
84
449
87
620
917
3,396
647
118
328
153
1,189
961
4,883
1,363
163
388
163
1,494
1.312
3,973
640
86
347
79
1.623
1.199
4,018
710
84
264
96
1,593
1,272
4,018
706
92
271
74
1,518
1,358
3,662
608
74
341
54
1,366
1,249
3,499'
791
76
201'
42
1,156
1,233
3,475
753
99
196
40
1,108
1,278
3,702
847
101
287
39
1,213
1,215
64 Other countries
65
Australia
All other
66
8,067
7,857
210
5,684
5,300
384
3,347
2,779
568
4,026
2,943
1.083
5,662
4,286
1,376
5,128
4,205
922
3,674
2,677
997
3.226
2,459
767
3,981
3,020
960
5,153
4,266
888
67 Nonmonetary international and regional
organizations
68
International
69
Latin American regional
Other regional 5
70
5,957
5,273
419
265
4,454
3,747
587
120
5,821
4,806
894
121
3,902
2,748
957
197
4,315
3,232
927
157
4,826
3,512
1,033
281
5.081
3.958
960
164
4.520
3,606
762
152
3,739
2,747
788
204
6,830
5,561
850
420
24 Canada
75 Latin America and Caribbean
Argentina
76
77
Bahamas
Bermuda
78
79
Brazil
British West Indies
30
31
Chile
37
Colombia
33
Cuba
Ecuador
34
35
Guatemala
36
Jamaica
37
Mexico
38
Netherlands Antilles
39
Panama
Peru
40
41
Uruguay
Venezuela
47
Other Latin America and Caribbean
43
44
45
46
47
48
49
50
51
57
53
54
55
56
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle-East oil-exporting countries'
Other Asia
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria. Gabon, Libya, and Nigeria.
5. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in " O t h e r
Western E u r o p e . "
A59
A60
3.18
International Statistics • August 1987
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1986
Area and country
1983
1984
1987
1985
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.P
1 Total
391,312
400,162
401,608
407,832
418,485
444,458
420,632
417,437'
413,312
437,936
2 Foreign countries
391,148
399,363
400,577
407,460
418,313
441,475
420,570
417,259'
412,768
434,036
91,927
401
5,639
1,275
1,044
8,766
1,284
476
9,018
1,267
690
1,114
3,573
3,358
1,863
812
47,364
1,718
477
192
1,598
99.014
433
4,794
648
898
9.157
1.306
817
9.119
1,356
675
1.243
2.884
2,230
2.123
1,130
56,185
1.886
596
142
1.389
106,413
598
5.772
706
823
9,124
1,267
991
8,848
1.258
706
1.058
1.908
2.219
3,171
1.200
62.566
1,964
998
130
1,107
104,647
595
7,712
796
1,111
9,600
1,432
626
7.713
2 592
711
699
1,922
2,375
2,832
1,612
58,248
1,886
799
296
1,090
107,047
748
8,149
764
1.176
9,574
1.769
792
8.391
2,427
712
682
1,722
2,343
3.574
1,539
59,120
1,813
600
225
927
107.549
738
7,511
700
947
11,401
1,826
648
9,051
3,314
654
706
1,459
1,945
3,049
1,541
58,380
1,833
556
345
944
100,817
654
7,571
667
797
9.095
2.277
635
7.916
2,087
741
677
1,479
2,280
2,622
1.469
55,765
1.775
536
396
1.379
102,406 r
559
8.920 r
631
1.050
10.001
1,736
634
7.339
2,107''
766
679
1,637
2.422
2,423
1,436
56,43 K
1,769
491
401
971'
99.183
660
8.053
642
1.086
9.731
1.634
530
6,979
2,375
663
737
1,766
2,457
2,336
1.577
53.956
1,840
781
364
1,014
107,868
747
8,520
536
1,100
10.810
1,366
455
7,517
3,075
678
666
1,936
2,404
2,847
1,561
59,767
1,763
670
380
1,070
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
13
Spain
16
Sweden
17
Switzerland
18
Turkey
19
United Kingdom
20
Yugoslavia
21
Other Western Europe 1
22
U.S.S.R
Other Eastern Europe 2
23
16.341
16,109
16.482
19,532
20.338
20.957
20,749
19.193'
19,799
20,253
25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
Colombia
32
Cuba
33
34
Ecuador
35
Guatemala 3
Jamaica 3
36
37
Mexico
38
Netherlands Antilles
39
Panama
40
Peru
41
Uruguay
42
Venezuela
Other Latin America and Caribbean
43
24 Canada
205,491
11.749
59,633
566
24.667
35,527
6,072
3,745
0
2,307
129
215
34,802
1,154
7,848
2,536
977
11,287
2.277
207.862
11.050
58.009
592
26.315
38.205
6.839
3,499
0
2,420
158
252
34.885
1.350
7,707
2.384
1,088
11,017
2.091
202,674
11,462
58,258
499
25.283
38.881
6,603
3,249
0
2,390
194
224
31,799
1.340
6,645
1.947
960
10,871
2.067
196.861
12,243
53,557
452
24,740
39,981
6,514
2.674
0
2,420
122
209
31,061
967
6,094
1.625
930
11.185
2,086
196,768
12.017
54,196
447
25.882
39,694
6,526
2,665
1
2,395
138
216
30.659
931
5,354
1,618
943
11,019
2,067
208,902
12.079
59,877
418
25,586
46,305
6,533
2,819
0
2,430
140
198
30,490
1,039
5,423
1,637
940
11,052
1,937
195.094
12.114
51,694
415
25.766
41.128
6,472
2,801
2
2,425
133
199
30.273
960
5,270
1,624
937
10.018
1,864
196,310 r
12.211
53.052 r
376
25,778 r
41,084 r
6,565
2,743
1
2,422
145
199
29,868 r
1,029'
5.204
1,616
932
11,175
1,910
198,644
12,162
53,725
545
25,979
42,523
6,401
2.692
6
2,338
135
192
29,799
992
5,465
1,583
959
11,278
1,868
208.994
12,154
62,763
740
26,221
42,681
6,399
2,679
9
2,388
120
189
30,084
1,202
5.849
1,584
957
11,063
1,910
44 Asia
China
45
Mainland
Taiwan
46
47
Hong Kong
48
India
49
Indonesia
50
Israel
51
Japan
Korea
52
53
Philippines
54
Thailand
55
Middle East oil-exporting countries 4
Other Asia
56
67,837
66,316
66,212
78,631
86,236
96,148
95,988
91,799'
87,426
89.199
292
1,908
8,489
330
805
1,832
30,354
9.943
2,107
1,219
4,954
5.603
710
1,849
7.293
425
724
2,088
29,066
9,285
2.555
1,125
5,044
6,152
639
1.535
6,797
450
698
1,991
31,249
9,226
2,224
845
4.298
6.260
758
1,528
8,337
316
694
1.630
45.240
7,023
2,071
611
3,396
7.027
793
1,812
7.575
327
722
1.615
53.351
6.533
1,972
595
3,778
7,162
787
2,675
8,250
321
718
1,645
59,852
7,155
2,202
577
4,122
7,845
983
2,617
8,443
333
699
1,611
58,315
6.783
2,147
521
5,483
8,053
873
2.890
9,225
325
679
1.531
55,623
6,161
2,120
557''
4,892
6,922
1,373
2.696
8.254
486
652
1,528
52,213
5,955
2,275
490
5.150
6.357
1,450
3,194
7,822
414
621
1,492
54,602
5,331
2,114
461
4,568
7,131
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries 5
Other
63
6,654
747
440
2,634
33
1,073
1,727
6,615
728
583
2,795
18
842
1.649
5,407
721
575
1,942
20
630
1,520
4,531
577
621
1,549
35
545
1,203
4,737
560
621
1,586
27
690
1,253
4,621
567
598
1,531
28
688
1,208
4,599
577
590
1,516
36
725
1,156
4,673''
593
585
1,543'
42
743
1,168
4,834
618
584
1.531
42
856
1,204
4,771
574
565
1,560
41
795
1,236
64 Other countries
65
Australia
66
All other
2,898
2,256
642
3,447
2,769
678
3,390
2.413
978
3,259
2,143
1,115
3,187
1,980
1.207
3,297
1,952
1,345
3,323
2,081
1.242
2,878
1,902'
976'
2.883
1.991
892
2,950
2,066
884
164
800
1.030
372
171
2,983
62
178
544
3.900
67 Nonmonetary international and regional
organizations 6
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria. Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
3. Included in " O t h e r Latin America and C a r i b b e a n " 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
" O t h e r Western E u r o p e . "
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
Millions of dollars, end of period
1987
1986
Type of claim
1983
1984
1985
Oct.
Nov.
407.832
60.745
182,548
117.865
53.546
64.319
46,675
Dec.
418.485
60,785
189,732
120.485
53.300
67,185
47,483
Jan.
Feb/
420,632
61,833
192.120
121,005
54,266
66.740
45.674
417,437
61,709
191,000
120,411
55,494
64,917
44,317
Mar.
1 Total
426,215
433,078
430,489
2
3
4
5
6
7
8
391.312
57.569
146,393
123,837
47,126
76,711
63,514
400,162
62.237
156,216
124.932
49.226
75,706
56,777
401,608
60,507
174,261
116,654
48,372
68,282
50.185
34,903
2,969
32,916
3,380
28,881
3,335
33,971
4,413
31,501
3,320
26.064
23.805
19,332
24,044
20,551
5,870
5,732
6,214
5.514
7,630
37,715
37,103
28,487
25.606
25.319
46,337
40,714
37,780
Ap T.P
Banks' own claims on foreigners
Foreign public borrowers
Own foreign offices'
Unaffiliated foreign banks
Deposits
Other
All other foreigners
9 Claims of banks' domestic customers 2 . .
478,429
444,458
63,582
212,023
122.819
57,349
65.471
46,034
444,813
413,312
62,631
189,850
116.567
53.636
62.931
44.264
437,936
65,486
207,023
120,438
57,461
62.978
44,989
11 Negotiable and readily transferable
12 Outstanding collections and other
13 MEMO: C u s t o m e r liability o n
Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States 4 . . . .
1. U.S. hanks: includes amounts due f r o m own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies,
branches, and majority-owned
subsidiaries
of
foreign banks: principally amounts due from head office or parent foreign bank,
and foreign branches, agencies, or wholly owned subsidiaries of head office or
parent foreign bank.
2. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the account
of their domestic customers.
3.20
42,771
44,772
43,597
46,611'
48.002
42.595
3. Principally negotiable time certificates of deposit and bankers acceptances.
4. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see July 1979 BULLETIN,
p. 550.
NOTE. Beginning April 1978, data for banks' own claims are given on a monthly
basis, but the data for claims of banks' own domestic customers are available on a
quarterly basis only.
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1986
Maturity; by borrower and area
1983
1984
1987
1985
June
1 Total
2
3
4
5
6
7
8
9
10
11
1?
13
14
15
16
17
18
19
Bv borrower
Maturity of 1 year or less 1
Foreign public borrowers
All other foreigners
Maturity of over 1 year 1
Foreign public borrowers
All other foreigners
Bv area
Maturity of 1 year or less 1
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 2
Maturity of over 1 year 1
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 2
1. Remaining time to maturity.
n.a.
Sept.
Dec.
Mar.P
243,715
243,952
227,903
222,597
224,693
230,897
222,841
176,158
24,039
152.120
67,557
32,521
35.036
167.858
23.912
143.947
76.094
38.695
37.399
160.824
26.302
134.522
67.078
34.512
32.567
152,589
23,171
129,418
70,008
37,365
32,643
155,116
22,527
132,589
69.577
38.189
31,388
159.414
24.920
134.494
71.483
39.816
31.667
151.002
22.339
128.664
71,839
40,998
30,840
56.117
6,211
73,660
34.403
4.199
1.569
58.498
6.028
62.791
33,504
4,442
2,593
56.585
6.401
63.328
27,966
3,753
2,791
57,948
6,074
57,397
25.802
3,297
2.073
59,383
6,160
58,191
26,474
3,071
1,838
61.057
5,794
55.879
29,372
2,854
4.458
57,455
5.497
53.635
29.25]
3,065
2,099
13,576
1.857
43,888
4.850
2,286
1.101
9,605
1,882
56,144
5.323
2.033
1.107
7,634
1,805
50,674
4.502
1.538
926
7,934
2.256
53.572
4,034
1,497
714
7,297
1.930
54.093
3.976
1.479
802
6,796
1,930
56.336
4.091
1,534
795
6,894
1.936
56.629
4.183
1,624
573
2. Includes nonmonetary international and regional organizations.
A61
A62
3.21
International Statistics • August 1987
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks 1 2
Billions
of d o l l a r s , e n d o f p e r i o d
1985
Area or country
1982
1983
1986
1987
1984
June
Sept.
Dec.
Mar.
June
Sept.
Dec.'
Mar.''
436.1
433.9
405.7
396.8
394.9
391.9
394.4
391.3'
391.4'
391.7
395.8
179.6
13.1
17.1
12.7
10.3
3.6
5.0
5.0
72.1
10.4
30.2
167.8
12.4
16.2
11.3
11.4
3.5
5.1
4.3
65.3
8.3
29.9
148.1
8.7
14.1
9.0
10.1
3.9
3.2
3.9
60.3
7.9
27.1
146.7
8.9
13.5
9.6
8.6
3.7
2.9
4.0
65.7
8.1
21.7
152.0
9.5
14.8
9.8
8.4
3.4
3.1
4.1
67.1
7.6
24.3
148.5
9.3
12.3
10.5
9.8
3.7
2.8
4.4
64.6
7.0
24.2
156.4'
8.3
13.8
11.3'
8.5
3.5
2.9
5.4
68.5
6.2
28.1
159.9
9.0
15.1
11.5
9.3
3.4
2.9
5.6
68.9
6.8
27.4
158.9
8.5
14.6
12.5
8.1
3.9
2.7
4.8
70.0
6.1
27.7
158.1
8.4
13.8
11.7
9.0
4.6
2.4
5.5
71.9
5.4
25.3
163.2
9.1
13.3
12.1
8.6
4.4
3.0
5.8
74.5
5.2
27.1
13 Other developed countries
14
Austria
15
Denmark
16
Finland
17
Greece
18
Norway
19
Portugal
20
Spain
21
Turkey
22
Other Western Europe
23
South Africa
24
Australia
33.5
1.9
2.4
3.0
3.3
1.5
7.5
1.4
2.3
3.7
4.3
36.0
1.9
3.4
2.4
2.8
3.3
1.5
7.1
1.7
1.8
4.7
5.4
33.6
1.6
~> i
1.9
2.9
3.0
1.4
6.5
1.9
1.7
4.5
6.0
32.3
1.6
1.9
1.8
2.9
2.9
1.3
5.9
2.0
1.8
3.9
6.2
32.0
1.7
2.1
1.8
2.8
3.4
1.4
6.1
2.1
1.7
3.3
5.6
30.4
1.6
2.4
1.6
2.6
2.9
1.3
5.8
1.9
2.0
3.2
5.0
31.6
1.6
2.5
1.9
2.5
2.7
1.1
6.4
2.3
2.4
3.2
4.9
30.6
1.7
2.4
1.6
2.6
3.0
1.0
6.4
2.5
2.1
3.1
4.2
29.4
1.7
2.3
1.7
2.3
2.7
1.0
6.7
2.1
1.6
3.1
4.1
26.1
1.7
1.7
1.4
2.3
2.4
.8
5.8
2.0
1.5
3.1
3.5
26.2
1.9
1.8
1.5
2.1
2.1
.9
6.2
1.9
1.6
3.1
3.2
25 OPEC countries 3
26
Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
30
African countries
26.9
2.2
10.5
2.9
8.5
2.8
28.4
2.2
9.9
3.4
9.8
3.0
24.9
9.3
3.3
7.9
2.3
22.8
-> i
9.3
3.1
6.1
2.2
22.7
•> i
9.0
3.1
6.2
2.3
21.6
2.1
8.9
3.0
5.5
2.0
20.7
2.2
8.7
3.3
4.8
1.8
20.6
2.1
8.8
3.0
5.0
1.7
20.0
2.1
8.7
2.8
4.6
1.7
19.5
2.2
8.6
2.5
4.5
1.7
20.2
2.1
8.7
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
~> •>
"> •
>
~> ~>
5.5
1.6
106.5
110.8
111.8
110.0
107.8
105.1
103.6'
101.5
99.7
99.3
99.9
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
8.9
22.9
6.3
3.1
24.2
2.6
4.0
9.5
23.1
6.4
3.2
25.8
2.4
4.2
8.7
26.3
7.0
3.9
8.6
26.6
6.9
2.7
25.3
2.1
3.7
8.9
25.5
6.6
2.6
24.4
1.9
3.5
8.9
25.6
7.0
2.7
24.2
1.8
3.4
8.9
25.6
7.0
2.3
24.0
1.7
3.3
9.2
25.3
7.1
2.2
23.8
1.6
3.3
9.3
25.2
7.1
2.0
23.8
1.5
3.3
9.5
25 2
7.1
2.1
23.8
1.4
3.1
9.5
25.6
7.2
2.0
23.8
1.4
3.0
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.2
5.3
.5
2.3
10.7
2.1
6.3
1.6
1.1
.3
5.2
.9
1.9
11.2
2.8
6.1
2.2
1.0
.7
5.1
.9
1.8
10.6
2.7
6.0
1.8
1.1
.3
5.5
.9
2.3
10.0
2.8
6.0
1.6
.9
1.1
5.1
1.1
1.5
10.4
2.7
6.0
1.7''
.9
s
4.5
1.2
1.6
9.4
2.4
5.7
1.4
1.0
.6
4.3
1.2
1.3
9.5
2 2
5.6
1.3
.9
.6
3.7
1.3
1.6
8.7
2.0
5.7
1.1
.8
.6
4.3
1.3
1.4
7.3
2.1
5.4
1.0
.7
.4
4.9
1.2
1.6
6.7
2.1
5.4
.9
.7
.9
5.4
1.8
1.4
6.2
1.9
5.4
.9
.6
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 4
1.2
.7
.1
2.4
1.5
.8
.1
2.3
1.2
.8
.1
2.1
1.0
.8
.1
2.0
1.0
.9
.1
2.0
1.0
.9
.1
1.9
.9
.9
.1
1.9
.9
.9
.1
1.7
.7
.9
.1
1.6
.7
.9
.1
1.6
.6
.9
.1
1.4
52 Eastern Europe
53
l.S.S.K
54
Yugoslavia
55
Other
6.2
.3
2.2
3.7
5.3
2
2.4
2.8
4.4
.1
2.3
2.0
4.3
.3
2 2
1.8
4.6
i
2.4
1.9
4.2
.1
1.8
4.0
.3
2.0
1.7
4.0
.3
2.0
1.7
3.4
.1
1.9
1.4
3.2
.1
1.7
1.4
3.1
.1
1.6
1.3
56 Offshore banking centers
57
Bahamas
58
Bermuda
59
Cayman Islands and other British West Indies
60
Netherlands Antilles
61
Panama
62
Lebanon
63
Hong Kong
64
Singapore
65
Others 6
66.0
19.0
.9
12.8
3.3
7.5
.1
13.3
9.1
.0
68.9
21.7
.9
12.2
4.2
5.8
.1
13.8
10.3
.0
65.6
21.5
.9
11.8
3.4
6.7
.1
11.4
9.8
.0
63.9
21.1
.9
12.1
3.2
5.4
.1
11.4
9.7
.0
58.8
16.6
.8
12.3
2.3
6.1
.0
11.4
9.4
.0
65.4
21.4
.7
13.4
2.3
6.0
.1
11.5
9.9
.0
61.6
21.5
.7
11.3
2.3
5.9
.1
11.4
8.4
.0
57.5''
17.3
5''
13.0'
2.3
5.5
.1
9.4
9.3
.0
62.6
20.0
.4
13.2
1.9
6.8
.1
10.4
9.7
.0
65.5
22.8
.7
14.5
1.8
5.1
.1
11.2
9.3
.0
65.5
23.8
.8
13.3
1.7
5.5
.1
11.5
8.8
.0
66 Miscellaneous and unallocated 7
17.5
16.8
17.3
16.9
17.3
16.9
16.7
17.2
17.5
20.1
17.8
31 Non-OPEC developing countries
1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S./-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices /w/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. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold kfor "shell" branches
25.7
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
3. Besides the Organization of Petroleum Exporting Countries shown individually. this group includes other members of OPEC (Algeria. Gabon, Iran, Iraq,
Kuwait. Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirales) as well
as Bahrain and Oman (nor formally members of OPEC).
4. Excludes Liberia.
5. Includes Canal Zone beginning December 1979.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.
Nonbank-Reported
3.22
Data
A63
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States'
M i l l i o n s of d o l l a r s , e n d of p e r i o d
1985
Type, and area or country
1982
1986
1984
1983
Mar.
Dec.
Sept.
June
Dec.
1 Total
27,512
25,346
29,357
27,741
26,301
24,698
24,460
25,321
i Payable in dollars
3 Payable in foreign currencies
24,280
3,232
22.233
3.113
26.389
2,968
24,352
3,389
22,544
3,757
21,040
3,657
20,633
3,827
21,553
3.768
By type
4 Financial liabilities
Payable in dollars
Payable in foreign currencies
6
11,066
8,858
2,208
10,572
8,700
1.872
14,509
12,553
1,955
13.516
11,313
2,203
12.971
10,705
2,267
11,578
9,515
2,063
11,700
9,418
2.281
12,070
9,705
2,365
7 Commercial liabilities
8
Trade payables
Advance receipts and other liabilities
9
16,446
9.438
7,008
14,774
7,765
7,009
14,849
7,005
7,843
14,225
6,685
7,540
13,329
5,618
7.711
13,120
5,472
7.648
12,760
5,592
7,168
13,251
6,290
6,961
15.423
1,023
13,533
1,241
13,836
1,013
13,039
1,186
11,839
1,490
11.525
1,595
11,214
1.546
11,848
1,404
6,501
505
783
467
711
792
3,102
5,742
302
843
502
621
486
2,839
6.728
471
995
489
590
569
3,297
7,616
329
857
434
745
676
4,254
7,460
338
851
388
630
692
4,217
7,022
288
686
280
635
561
4,274
7,254
322
5OT
319
708
692
4,272
7,851
245
729
372
701
714
4,790
10
11
1?
13
14
15
16
17
18
Payable in dollars
Payable in foreign currencies
By area or country
Financial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
19
Canada
746
764
863
839
832
367
362
403
20
71
??
73
74
75
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,751
904
14
28
1,027
121
114
2,596
751
13
32
1,041
213
124
5,086
1,926
13
35
2,103
367
137
3,184
1,123
4
29
1,843
15
3
2,810
958
4
26
1,639
20
3
2,443
874
14
27
1,386
30
3
2,269
863
4
28
1,256
18
5
1.969
621
4
32
1,160
22
3
27
28
29
Asia
Japan
Middle East oil-exporting countries 2
1,039
715
169
1,424
991
170
1,777
1,209
155
1,815
1,198
82
1.824
1,217
78
1,685
1,214
43
1,790
1,354
3
1,767
1,352
8
30
31
Africa
Oil-exporting countries 3
17
0
19
0
14
0
12
0
12
0
12
0
4
2
1
32
All other 4
12
27
41
50
32
49
21
79
3,831
52
598
468
346
367
1.027
3,245
62
437
427
268
241
732
4,001
48
438
622
245
257
1,095
4,074
62
453
607
364
379
976
3,925
66
382
546
545
261
957
3,826
58
358
561
586
284
864
4,337
75
369
628
613
360
1.086
4,421
99
338
693
493
384
1,279
33
34
35
36
37
38
39
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
1
40
Canada
1,495
1,841
1,975
1,449
1,445
1,357
1,240
1,386
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,570
16
117
60
32
436
642
1,473
1
67
44
6
585
432
1,871
• 7
114
124
32
586
636
1,088
12
77
58
44
430
212
1,107
26
218
64
7
256
364
1,242
10
294
45
35
235
488
843
37
172
43
45
196
207
850
19
132
59
48
210
215
48
49
50
Asia
Japan
Middle East oil-exporting countries 2 - 5
8,144
1,226
5,503
6.741
1,247
4,178
5,285
1.256
2.372
6,046
1,799
2,829
5,384
2,039
2,171
5.075
2.100
1,787
4,781
2,114
1.490
5,011
2,046
1,666
51
52
Africa
Oil-exporting countries 3
753
277
553
167
588
233
587
238
486
148
567
215
578
176
619
197
53
All other 4
651
921
1.128
982
983
1,053
980
963
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 1987
CLAIMS ON UNAFFILIATED FOREIGNERS
United States'
Reported by Nonbanking Business Enterprises in the
M i l l i o n s of d o l l a r s , e n d of p e r i o d
1985
Type, and area or country
1982
1983
1986
1984
Dec.
Mar.
June
Sept.
Dec.
1 Total
28,725
34,911
29,901
28,437
31,383
33,282
32,599
33,101
Payable in dollars
3 Payable in foreign currencies
26.085
2.640
31.815
3.096
27.304
2.597
26.135
2,302
29,196
2,187
31,100
2.182
30,123
2,475
30,498
2,603
By type
4 Financial claims
Deposits
6
Payable in dollars
/
Payable in foreign currencies
8
Other financial claims
9
Payable in dollars
10
Payable in foreign currencies
17.684
13.058
12.628
430
4.626
2.979
1.647
23,780
18.496
17.993
503
5.284
3.328
1.956
19.254
14,621
14.202
420
4,633
3,190
1,442
18,451
15.204
14.589
615
3.248
2,213
1,035
21,996
18,612
18,155
457
3,384
2,291
1,093
24,139
20,833
20,278
555
3,306
2,285
1,021
23,503
18,566
18.078
488
4,937
3,717
1,220
23,550
18,796
18.247
549
4,754
3,456
1,298
11 Commercial claims
12
Trade receivables
13
Advance payments and other claims
11.041
9.994
1.047
11.131
9,721
1,410
10,646
9.177
1.470
9,986
8.696
1,290
9,387
8,087
1,300
9,142
7.802
1,341
9,096
7,924
1,172
9,551
8,405
1.146
14
15
10.478
563
10,494
637
9.912
735
9.333
652
8,750
637
8.537
606
8,329
767
8,794
756
4.873
15
134
178
97
107
4.064
6,488
37
150
163
71
38
5.817
5.762
15
126
224
66
66
4,864
6.530
10
184
223
61
74
5,725
7,183
10
217
174
61
166
6,310
9,626
11
257
148
17
177
8,799
9,548
67
418
129
44
138
8.525
8,678
41
131
86
87
134
7,948
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
4.377
5.989
3,988
3,260
4,020
4,429
3,817
4,119
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
7.546
3.279
32
62
3.255
274
139
10,234
4.771
102
53
4,206
293
134
8,216
3,306
6
100
4,043
215
125
7,841
2,698
6
78
4.571
180
48
10,073
3,516
2
77
6,034
178
43
9,253
3,310
17
75
5,402
176
42
9,300
2,912
19
101
5,871
173
40
9,306
2,534
13
67
6,194
173
24
31
32
33
Asia
Japan
Middle East oil-exporting countries-
698
153
15
764
297
4
961
353
13
696
475
4
619
350
2
723
499
2
673
387
2
1,335
1,003
11
34
35
Africa
Oil-exporting countries 3
158
48
147
55
210
85
103
29
87
27
89
25
84
18
85
28
36
All other 4
31
159
117
21
14
20
81
27
3.826
151
474
357
350
360
811
3,670
135
459
349
334
317
809
3,801
165
440
374
335
271
1.063
3.533
175
426
346
284
284
898
3,390
148
384
399
221
247
795
3,304
131
391
418
230
228
674
3,344
123
412
397
183
232
830
3,518
127
387
428
199
213
820
37
38
39
40
41
42
43
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
633
829
1.021
1,023
1.061
965
929
909
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2.526
21
261
258
12
775
351
2,695
8
190
493
7
884
272
2,052
8
115
214
7
583
206
1,753
13
93
206
6
510
157
1,592
27
82
217
7
388
172
1,611
24
148
193
29
323
181
1,665
29
132
206
23
299
190
1,825
29
157
229
55
385
216
52
53
54
Asia
Japan
Middle East oil-exporting countries 2
3,050
1,047
751
3,063
1,114
737
3.073
1.191
668
2,982
1.016
638
2,609
801
630
2.574
845
622
2,471
788
597
2,619
840
506
55
56
Africa
Oil-exporting countries 3
588
140
588
139
470
134
437
130
491
167
450
170
456
168
464
134
417
286
229
257
244
237
231
215
57
All other
4
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain. Iran, Iraq, Kuwait. Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon. Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
Securities Holdings and Transactions
3.24
A65
FOREIGN TRANSACTIONS IN SECURITIES
M i l l i o n s of d o l l a r s
1987
1987
1986
Transactions, and area or country
Jan.-Apr.
Nov.
Oct.
Jan.
Dec.
Feb.'
Apr.P
Mar.
U.S. corporate securities
STOCKS
81,995
77,054
1 Foreign purchases
2 Foreign sales
148,134
129,436
82,075
68.944
10,979
12,300
12.033
12.086
14.096
12,320
17,617
15.956
20,704
17,599
23,064
17,999
20,690
17,390
3
Net purchases, or sales ( - )
4,941
18,698
13,130
-1,322
-52
1,776
1,661
3,105
5,065
3,300
4
Foreign countries
4,857
18,905
13,210
-1,179
-19
1,696
1,741
3,204
5,028
3,238
2,057
-438
730
-123
-75
1,665
356
1,718
238
296
24
168
9,559
459
341
936
1,560
4,826
807
3,029
975
3,865
297
373
5,717
1,574
-4
337
687
2,607
566
1,047
-249
5,668
74
387
-1,124
-92
-104
-19
-405
-481
-115
154
-51
16
39
-97
-485
-69
-3
-50
-236
-114
41
367
-92
80
23
48
557
113
24
14
47
363
102
220
267
450
17
84
1,061
140
62
53
101
647
100
308
136
88
-1
49
1,786
446
16
91
100
996
-118
331
-175
1,153
15
212
1,843
656
19
69
180
783
343
372
-230
2,638
1
61
1,028
332
-101
124
306
181
241
36
20
1,790
59
64
84
-208
-80
-143
-34
80
-80
-100
37
62
86,587
42,455
122,743
71,840
39.286
27.365
9,752
5,539
9,277
6,105
11,879
7,733
9,308
7,178
8,021
5,457
12,121
8,274
9,836
6,456
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
1? Latin America and Caribbean
13 Middle East 1
14 Other Asia
15 Africa
16 Other countries
7
8
9
10
11
17
Nonmonetary international and
regional organizations
BONDS2
18
19
Foreign purchases
Foreign sales
20
Net purchases, or sales (—)
44,132
50,903
11,921
4,213
3,172
4,147
2,130
2,565
3,847
3,380
21
Foreign countries
44,227
50,056
11,606
4,455
2,853
4,251
2,218
2,179
4,005
3,204
77
73
24
75
76
77
78
79
30
31
37
33
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
40,047
210
2,001
222
3,987
32,762
190
498
-2,648
6.091
11
38
39,307
388
-251
387
4,529
33,899
548
1,468
-2,961
11,539
16
139
9,312
83
10
79
776
8.361
612
395
-146
1.482
6
-55
3.475
0
82
-55
265
3,177
88
101
-33
817
-3
II
2,100
328
-108
113
204
1,416
154
66
-355
902
3
-15
3,074
32
-19
52
-117
2,770
153
102
-258
1,174
3
3
1,375
6
-213
-7
66
1,392
-103
103
-57
917
0
-16
1,402
17
145
-29
78
1,178
364
98
-139
469
1
-16
3,605
81
198
69
558
2,936
190
72
-12
169
3
-22
2,930
-22
-120
47
74
2,855
161
123
62
-73
1
0
34
Nonmonetary international and
regional organizations
-95
847
315
-243
319
-104
-88
386
-159
176
Foreign securities
15
36
37
Stocks, net purchases, or sales ( - )
Foreign purchases
Foreign sales
-3,941
20,861
24,803
-1,452
50,292
51,744
-2,561
26,304
28,865
1,311
6,426
5.115
391
4,190
3,799
65
4,709
4,644
-167
5,001
5,169
-561
7,175
7,736
-714
7,009
7,722
-1119
7,119
8,238
38
39
40
Bonds, net purchases, or sales ( - )
Foreign purchases
Foreign sales
-3,999
81,216
85,214
-3,098
166.700
169,798
-916
62,910
63,826
2,125
16,274
14,149
-683
12,663
13.346
-441
16,316
16,756
320
11,427
11,107
-71
15,821
15,891
-489
16,651
17,140
-675
19,012
19,687
41
Net purchases, or sales ( - ) , of stocks and bonds . . . .
-7,940
-4,550
-3,477
3,436
-292
-376
152
-632
-1,203
-1,794
42
Foreign countries
-9,003
-5,665
-4,138
3,117
-294
-825
10
-712
-1,508
-1,929
43
44
45
46
47
48
Europe
Canada
Latin America and Caribbean
-9,887
-1.686
1,797
659
75
38
-17,675
-875
3,469
11,342
52
-1,977
-4.802
-1,167
323
2,034
11
-538
-657
94
502
3,237
-1
-59
-1,010
-106
16
820
4
-19
-1,369
-264
203
1,511
3
-909
-188
-396
389
168
4
33
-1,220
-566
104
925
0
45
-658
-202
-428
306
-1
-524
-2,737
-3
259
636
8
-91
49
Nonmonetary international and
regional organizations
1,063
1,115
662
320
2
449
143
80
305
135
Africa
Other countries
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 1987
MARKETABLE U.S. TREASURY BONDS A N D NOTES
Millions of dollars
Foreign Transactions
1987
Country or area
1985
1987
1986
1986
Jan.Apr.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.''
Transactions, net purchases or sales ( - ) during period 1
1 Estimated total 2
29,208
24,173
4,585
3,032
-2,259
991
-436r
7,124
-3,036
2 Foreign countries 2
28,768
25,277
5,186
2,717
-301
-488
580
1,818
4,239
-1,451
4,303
476
1,917
269
976
773
-1,810
1,701
0
-188
16,851
349
7,531
1,283
132
310
4,648
2,598
0
881
9,481
201
5,026
-558
529
2.631
389
1,301
-38
1,861
3,046
4
2,497
112
-6
449
141
-149
0
-230
-727
-53
700
38
-70
-498
-335
-510
0
19
1,001
75
-487
-58
-236
-428
1,036
1,099
0
297
1,376
59
581
-366
-229
-135
1,227
236
3
846
1,709
211
1,118
41
440
473
-57
-518
0
-403
5,865
-35
2,141
-212
334
1,641
360
1,635
0
702
532
-35
1,187
-22
-16
652
-1,140
-53
-41
716
4,315
248
2,336
1,731
19,919
17,909
112
308
878
-95
1,131
-159
5,466
4,048
-54
1,255
-1,392
101
-408
-1,085
-5,067
-3,426
-30
333
-219
69
-314
26
-30
-450
-13
163
75
-139
6
208
-152
188
2
482
97
29
96
-28
-2,067
-2,086
-14
198
-1,006
-33
-445
-528
-922
-76
6
280
-290
18
374
-682
1,231
1,767'
-34
-396
-62
102
-156
-8
-2,309
-2,388
12
32
-34
14
-180
133
-3,067
-2,729
-15
416
442
-436
18
-1,105
-1,430
157
-599
-468
11
315
365
-5
-1,958
-2,010
0
1,478
1,412
0
-1,016'
-1,070'
0
-884'
-886'
0
2,885
2,835
11
-1,584
-1,347
0
28,768
8,135
20,631
25,277
14,366
10,913
5,186
10,534
-5,349
2,717
3,589
-872
-301
133
-434
-488
295
-782
580
1,498
-918
1,818
834'
983'
4,239
5,837
-1,597
-1,451
2,366
-3,817
-1,547
7
-1473
5
-1,516
20
-377
-1
-1,014
1
-21
0
-721
1
-962
1
226
17
-60
0
3 Europe 2
4
Belgium-Luxembourg
5
Germany2
6
Netherlands
7
Sweden
8
Switzerland 2
9
United Kingdom
10
Other Western Europe
11
Eastern Europe
12 Canada
1.3 Latin America and Caribbean
14
Venezuela
15
Other Latin America and Caribbean
16
Netherlands Antilles
17
18
Japan
19 Africa
20 All other
21 Nonmonetary international and regional organizations
22
International
23
Latin American regional
932'
MEMO
24 Foreign countries 2
25
Official institutions
Other foreign 2
26
27
28
Oil-exporting countries
Middle East 3
Africa 4
1. Estimated official and private transactions in marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based on
monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
2. Includes U.S. Treasury notes publicly issued to private foreign residents
denominated in foreign currencies.
3. Comprises Bahrain, Iran, Iraq, Kuwait, O m a n , Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria,
Interest and Exchange
3.26
Rates
A67
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Rate on May 31, 1987
Rate on May 31, 1987
Percent
Austria..
Belgium .
Brazil...
Canada..
Denmark
3.5
7.75
49.0
8.54
7.0
Country
Month
effective
Jan.
May
Mar.
May
Oct.
1987
1987
1981
1987
1983
Percent
France 1
Germany, Fed. Rep. of
Italy
Japan
Netherlands
1. As of the end of February 1981, the rate is that at which the Bank of France
discounts Treasury bills for 7 to 10 days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either discounts
3.27
Rate on May 31, 1987
Country
Country
Month
effective
7.75
3.5
11.5
2.5
4.5
Mar.
Mar.
Mar.
Feb.
Mar.
1987
1986
1987
1987
1986
Percent
8.0
3.5
Norway
Switzerland
United Kingdom 2 .
Venezuela
Month
effective
June 1983
Jan. 1987
or makes advances against eligible commercial paper and/or government commercial banks or brokers. For countries with more than one rate applicable to such
discounts or advances, the rate shown is the one at which it is understood the
central bank transacts the largest proportion of its credit operations.
FOREIGN SHORT-TERM INTEREST RATES
P e r c e n t p e r a n n u m , a v e r a g e s of d a i l y f i g u r e s
1986
Country, or type
1984
1985
1987
1986
Nov.
Jan.
Feb.
Mar.
Apr.
May
Eurodollars
United Kingdom
Canada
Germany
Switzerland
10.75
9.91
11.29
5.96
4.35
8.27
12.16
9.64
5.40
4.92
6.70
10.87
9.18
4.58
4.19
5.96
11.12
8.39
4.67
3.88
6.23
11.30
8.34
4.80
4.08
6.10
10.98
7.95
4.45
3.63
6.32
10.79
7.44
3.94
3.58
6.37
9.90
7.14
3.97
3.93
6.73
9.72
7.62
3.85
3.65
7.25
8.79
8.22
3.73
3.63
Netherlands
France
Italy
Belgium
Japan
1
2
3
4
5
6
7
8
9
10
Dec.
6.08
11.66
17.08
11.41
6.32
6.29
9.91
14.86
9.60
6.47
5.56
7.68
12.60
8.04
4.96
5.48
7.51
11.05
7.38
4.39
6.03
7.92
11.40
7.39
4.40
5.58
8.49
11.39
7.88
4.23
5.31
8.36
11.13
7.75
3.98
5.38
7.85
10.65
7.49
4.00
5.31
7.87
10.03
7.21
3.92
5.11
8.09
10.15
7.13
3.77
NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate.
A68
3.28
International Statistics • August 1987
FOREIGN EXCHANGE RATES
C u r r e n c y units per dollar
1986
Country/currency
1984
1985
1987
1986
Dec.
1
2
3
4
5
6
7
1
Australia/dollar
Austria/schilling
Belgium/franc
Brazil/cruzeiro
Canada/dollar
China. F.R./yuan
Denmark/krone
8
9
10
11
12
13
14
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee
Ireland/pound 1
15
16
17
18
19
20
31
Italy/lira
Japan/yen
Malaysia/ringgit
Netherlands/guilder
New Zealand/dollar'
Norway/krone
Portugal/escudo
22
23
24
25
26
27
28
29
30
31
Singapore/dollar
South Africa/rand 1
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/point 1
Jan.
Feb.
Mar.
Apr.
May
87.937
20.005
57.749
1841.50
1.2953
2.3308
10.354
70.026
20.676
59.336
6205.10
1.3658
2.9434
10.598
67.093
15.260
44.662
13.051
1.3896
3.4615
8.0954
65.95
13.996
41.381
14.54
1.3801
3.7314
7.5235
66.09
13.087
38.616
15.58
1.3605
3.7314
7.0591
66.77
12.833
37.789
18.08
1.3340
3.7314
6.8939
68.17
12.905
38.029
20.56
1.3194
3.7314
6.9166
71.19
12.739
35.562
22.59
1.3183
3.7314
6.8388
71.42
12.574
37.091
n.a.
1.3411
3.7314
6.7333
6.0007
8.7355
2.8454
112.73
7.8188
11.348
108.64
6.1971
8.9799
2.9419
138.40
7.7911
12.332
106.62
5.0721
6.9256
2.1704
139.93
7.8037
12.597
134.14
4.8980
6.5296
1.9880
140.13
7.7931
13.149
136.78
4.6419
6.2007
1.8596
134.80
7.7698
13.029
143.90
4.5556
6.0760
1.8239
133.88
7.7952
13.062
145.93
4.5102
6.1091
1.8355
134.68
7.8017
12.924
145.54
4.4227
6.0332
1.8125
133.502
7.8023
12.8224
147.49
4.3604
5.9748
1.7881
133.35
7.8049
12.666
149.59
1756.10
237.45
2.3448
3.2083
57.837
8.1596
147.70
1908.90
238.47
2.4806
3.3184
49.752
8.5933
172.07
1491.16
168.35
2.5830
2.4484
52.456
7.3984
149.80
1379.44
162.05
2.5966
2.2470
51.339
7.5294
148.61
1317.17
154.83
2.5701
2.0978
53.605
7.1731
142.90
1297.74
153.41
2.5418
2.0592
54.815
7.0067
141.62
1305.90
151.43
2.5230
2.0731
56.333
6.9335
141.48
1292.96
143.00
2.4861
2.0447
57.751
6.7781
140.339
1290.80
140.48
2.4759
2.0154
57.639
6.6632
139.18
2.1325
69.534
807.91
160.78
25.428
8.2706
2.35(H)
39.633
23.582
133.66
2.2008
45.57
861.89
169.98
27.187
8.6031
2.4551
39.889
27.193
129.74
2.1782
43.952
884.61
140.04
27.933
7.1272
1.7979
37.837
26.314
146.77
2.1900
44.94
868.43
134.49
28.532
6.9081
1.6647
36.001
26.239
143.93
2.1510
47.70
862.86
129.54
28.578
6.6188
1.5616
35.304
26.037
150.54
2.1410
47.97
857.38
128.62
28.662
6.5016
1.5403
35.056
25.933
152.80
2.1418
48.21
856.11
128.86
28.823
6.4202
1.5391
34.681
25.881
159.23
2.1350
49.55
845. (X)
126.975
28.902
6.3210
1.4968
33.863
25.695
162.99
2.1202
49.87
832.53
125.28
28.988
6.2606
1.4705
32.354
25.629
166.66
138.19
143.01
112.22
106.54
101.13
99.46
98.99
97.09
96.05
MEMO
32 United States/dollar
1. Value in U.S. cents.
2. Index of weighted-average exchange value of U.S. dollar against the
currencies of 10 industrial countries. The weight for each of the 10 countries is the
1972-76 average world trade of that country divided by the average world trade of
all 10 countries combined. Series revised as of August 1978 (see FEDERAL
RESERVE BULLETIN, vol. 64. August 1978, p. 7(H)).
3. Currency reform.
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
Symbols and
c
e
P
r
*
PRESENTATION
Abbreviations
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when
about half of the figures in that column are changed.)
Amounts insignificant in terms of the last decimal place
shown in the table (for example, less than 500,000
when the smallest unit given is millions)
General
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
" U . S . government securities" may include guaranteed
issues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
STATISTICAL
obligations of the Treasury. "State and local government"
also includes municipalities, special districts, and other political subdivisions.
In some of the tables details do not add to totals because of
rounding.
RELEASES
List Published Semiannually,
with Latest Bulletin
Reference
Issue
June 1987
Anticipated schedule of release dates for periodic releases
SPECIAL
TABLES
Published Irregularly,
Assets
Assets
Assets
Assets
Assets
Assets
Assets
Assets
Terms
Terms
Terms
Terms
Page
A89
with Latest Bulletin
Reference
and liabilities of commercial banks, March 31, 1986
and liabilities of commercial banks, June 30, 1986
and liabilities of commercial banks, September 30, 1986
and liabilities of commercial banks, December 31, 1986
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, May 1986
of lending at commercial banks, August 1986
of lending at commercial banks, November 1986
of lending at commercial banks, February 1987
Special tables begin on next page.
June 30, 1986
September 30, 1986
December 31, 1986
March 31, 1987
June
June
July
July
December
March
May
August
July
December
February
May
1987
1987
1987
1987
1986
1987
1987
1987
1986
1986
1987
1987
A70
A76
A70
A76
A76
A70
A76
A70
A70
A70
A70
A70
A70
4.30
Special Tables • August 1987
ASSETS A N D LIABILITIES of U.S. Branches and Agencies of Foreign Banks, March 31, 1987'
M i l l i o n s of d o l l a r s
All states 2
Item
1 Total assets4
Total
including
IBFs
New York
IBFs
only 3
Total
including
IBFs
California
IBFs
only 3
Total
including
IBFs
Illinois
Total
including
IBFs
IBFs
only 3
IBFs
only 3
395,893
195,277
295,029
154,394
60,964
27,070
22,008
8,430
2 Claims on nonrelated parties
3 Cash and balances due from depository institutions
4
Cash items in process of collection and unposted
debits
5
Currency and coin (U.S. and foreign)
6
Balances with depository institutions in United States
U.S. branches and agencies of other foreign banks
7
(including their IBFs)
8
Other depository institutions in United States
(including their IBFs)
y
Balances with banks in foreign countries and with
foreign central banks
10
Foreign branches of U.S. banks
Other banks in foreign countries and foreign central
11
banks
12
Balances with Federal Reserve Banks
367,441
91,661
167,050
74,891
276,420
76,589
131,716
62,210
54,471
8,791
24,216
8,118
22,008
5,025
8,249
3,919
406
28
50,516
0
n.a.
37,227
380
21
41,447
0
n.a.
30.229
5
2
5,603
0
n.a.
5,003
s
2
2,763
0
n.a.
1,746
43,784
35,126
35,596
28,267
5,316
4,933
2,385
1,689
6,732
2,101
5,851
1,961
288
70
378
57
38,597
2,517
37,664
2,437
32,788
2,392
31,981
2,325
3,138
42
3,115
36
2,195
67
2,173
65
36,079
2,114
35,228
n.a.
30,396
1,952
29,657
n.a.
3,096
43
3,079
n.a.
2,129
59
2,108
n.a.
13 Total securities and loans
226,270
86,624
159,498
65,359
38,333
15,189
15,906
3,980
30,428
7,519
8,193
n.a.
24,617
7,155
6,112
n.a.
3,941
165
1,777
n.a.
874
103
209
n.a.
14 Total securities, book value
15
U.S. Treasury
16
Obligations of U.S. government agencies and
corporations
Other bonds, notes, debentures and corporate stock
17
(including state and local securities)
2,385
n.a.
2,259
n.a.
20,524
8,193
15,204
6,112
3,657
1,777
771
209
18 Federal funds sold and securities purchased under
agreements to resell
19
U.S branches and agencies of other foreign b a n k s . . . .
20
Commercial banks in United States
Other
21
17,137
11,425
3,323
2,389
2,107
1,160
47
900
15,707
10,243
3,212
2,253
1,644
780
47
817
800
702
45
53
234
229
0
5
329
285
19
25
136
116
0
20
196,062
220
195.842
78,505
74
78,431
135,034
153
134,881
59,296
49
59,247
34,448
56
34,392
13,436
25
13,411
15,037
5
15,032
3,771
0
3,771
8,352
63,481
35,272
32,512
2,760
89
44,223
17,948
16,901
1,047
3,921
46,117
24,796
22,408
2,388
65
30,226
10,526
9,615
910
2,147
12,037
7,545
7,308
237
24
9,792
5,399
5,280
120
549
3,871
2,624
2,579
46
0
3,075
1,898
1,881
17
196
28,014
1,071
26,943
5,687
115
26,159
997
25,163
920
119
21,203
864
20,340
3,530
69
19,631
790
18.841
836
14
4,478
183
4,295
930
0
4,392
182
4,210
39
15
1,232
25
1,207
1,000
0
1,177
25
1,152
28
35 Commercial and industrial loans
36
U.S. addressees (domicile)
37
Non-U.S. addressees (domicile)
38 Acceptances of other banks
39
U.S. banks
Foreign banks
40
41 Loans to foreign governments and official institutions
(including foreign central banks)
42 Loans for purchasing or carrying securities
(secured and unsecured)
43 All other loans
93,833
71,469
22,364
1,022
431
592
18,195
77
18,118
22
2
21
60,341
41,975
18,366
854
289
564
15,338
49
15.289
17
2
16
17,252
14,644
2,608
126
124
1
2,183
26
2,157
0
0
0
9,038
8,605
433
17
0
16
352
0
352
5
0
5
17,169
14,697
14,720
12,563
1,393
1,345
343
280
4,200
2,317
104
255
3,656
1,895
72
179
466
96
0
55
62
157
32
0
44 All other assets
45
Customers' liability on acceptances outstanding
46
U.S. addressees (domicile)
47
Non-U.S. addressees (domicile)
48
Other assets including other claims on nonrelated
parties
49 Net due from related depository institutions 5
50
Net due from head office and other related depository
institutions 5
51
Net due from establishing entity, head offices,
and other related depository institutions 5
32,373
21,489
14,683
6.806
3,429
n.a.
n.a.
n.a.
24,626
15,871
10,027
5,845
2,503
n.a.
n.a.
n.a.
6,547
5,214
4,386
827
675
n.a.
n.a.
n.a.
748
231
211
20
214
n.a.
n.a.
n.a.
10,884
28,452
3,429
28,227
8,755
18,609
2,503
22,678
1,333
6,492
675
2,855
517
0
214
182
28,452
n.a.
18,609
n.a.
6,492
n.a.
n.a.
28,227
n.a.
22,678
n.a.
2,855
n.a.
52 Total liabilities4
395,893
195,277
295,029
154,394
60,964
27,070
22,008
8,430
53 Liabilities to nonrelated parties
345,562
170,151
267,481
135,161
54,089
23,776
13,316
6,219
22 Total loans, gross
23
Less: Unearned income on loans
24
Equals: Loans, net
Total loans, gross, by category
25 Real estate loans
26 Loans to depository institutions
27
Commercial banks in United States (including IBFs) .
28
U.S. branches and agencies of other foreign banks .
29
Other commercial banks in United States
Other depository institutions in United States
30
(including IBFs)
31
Banks in foreign countries
32
Foreign branches of U.S. banks
Other banks in foreign countries
33
34 Other financial institutions
120
n.a.
0
0
n.a.
n.a.
182
U.S. Branches
4.30
and Agencies
A71
Continued
M i l l i o n s of d o l l a r s
All states 2
Item
54 Total deposits and credit balances
55
Individuals, partnerships, and corporations
56
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
57
58
Commercial banks in United States (including IBFs) .
59
U.S. branches and agencies of other foreign banks .
Other commercial banks in United States
60
Banks in foreign countries
61
Foreign branches of U.S. banks
62.
Other banks in foreign countries
63
Foreign governments and official institutions
64
(including foreign central banks)
65
All other deposits and credit balances
Certified and official checks
66
67 Transaction accounts and credit balances
(excluding IBFs)
Individuals, partnerships, and corporations
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Commercial banks in United States (including IBFs) .
U.S. branches and agencies of other foreign banks .
Other commercial banks in United States
Banks in foreign countries
Foreign branches of U.S. banks
Other banks in foreign countries
Foreign governments and official institutions
(including foreign central banks)
78
All other deposits and credit balances
Certified and official checks
79
68
69
70
71
72
73
74
75
76
77
80 Demand deposits (included in transaction accounts
and credit balances)
Individuals, partnerships, and corporations
81
U.S. addressees (domicile)
87
83
Non-U.S. addressees (domicile)
Commercial banks in United States (including IBFs) .
84
U.S. branches and agencies of other foreign banks .
85
Other commercial banks in United States
86
Banks in foreign countries
87
Foreign branches of U.S. banks
88
Other banks in foreign countries
89
Foreign governments and official institutions
90
(including foreign central banks)
91
All other deposits and credit balances
Certified and official checks
92
93 Non-transaction accounts (including MMDAs,
excluding IBFs)
Individuals, partnerships, and corporations
94
95
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
96
Commercial banks in United States (including IBFs) .
97
U.S. branches and agencies of other foreign banks .
98
99
Other commercial banks in United States
Banks in foreign countries
100
Foreign branches of U.S. banks
101
Other banks in foreign countries
102
Foreign governments and official institutions
103
(including foreign central banks)
104
All other deposits and credit balances
105 IBF deposit liabilities
Individuals, partnerships, and corporations
106
U.S. addressees (domicile)
107
108
Non-U.S. addressees (domicile)
109
Commercial banks in United States (including IBFs) .
110
U.S. branches and agencies of other foreign banks .
Other commercial banks in United States
111
Banks in foreign countries
117
113
Foreign branches of U.S. banks
Other banks in foreign countries
114
Foreign governments and official institutions
115
(including foreign central banks)
All other deposits and credit balances
116
For notes see end of table.
Total
excluding
IBFs
New York
IBFs
only 3
Total
excluding
IBFs
California
IBFs
only 3
Total
excluding
IBFs
Illinois
IBFs
only 3
Total
excluding
IBFs
IBFs
only 3
54,912
42,770
33,700
9,070
8,587
4,355
4,232
1,876
224
1,652
134,695
13,496
466
13,030
47,235
40,720
6,515
68,460
7,443
61,018
46,615
35,377
29,074
6,303
7,892
3,782
4,110
1,815
224
1,592
119,216
10,312
461
9,851
40,579
34,780
5,799
63,076
6,206
56,870
1,645
1,501
437
1,065
46
5
40
14
0
14
8,661
341
0
341
4,643
4,173
470
3,627
6/1
2,956
2,817
2,177
1,997
181
621
551
69
3
0
3
2,324
104
0
104
1,217
1,105
112
911
383
529
//O
318
591
5,019
484
/46
291
494
4,765
483
17
4
63
50
0
3
2
11
91
0
5, 988
3,670
2,459
1,211
391
82
310
918
12
906
n a.
5,126
2,984
2,038
946
382
81
301
877
12
865
n a.
210
136
90
46
5
0
4
4
0
4
n.a.
235
218
214
3
0
0
0
2
0
2
289
129
591
281
109
494
1
3
63
3
1
11
4,833
3,168
2,092
1,077
155
>
149
620
1
619
4,136
2,634
1,781
853
146
5
141
580
1
5/9
133
61
30
31
4
0
4
3
0
3
225
207
204
3
0
0
0
2
0
2
n a.
n a.
n a.
n a.
225
74
591
217
65
494
1
0
63
3
1
11
48,923
39,100
31,240
7, (60
8,196
4,274
3,922
958
212
746
41,489
32,393
27,036
5,357
7,510
3,700
3,809
938
212
726
1,434
1,366
347
1,019
41
5
36
10
0
10
2,582
1,960
1,782
177
620
551
69
1
0
1
n.a.
n a.
481
188
n a.
n a.
465
183
134,695
13,496
466
13,030
47,235
40,720
6,515
68,460
7,443
61,018
5,019
484
n a.
n a.
15
2
119,216
10,312
461
9,851
40,579
34,780
5,799
63,076
6,206
56,870
4,765
483
n a.
n.a.
0
1
8,661
341
0
341
4,643
4,173
470
3,627
6/1
2,956
50
0
n.a.
2,324
104
0
104
1,217
1,105
112
911
383
529
91
0
A72
4.30
Special Tables • August 1987
ASSETS A N D LIABILITIES of U.S. Branches and Agencies of Foreign Banks, March 31, 1987'—Continued
M i l l i o n s of d o l l a r s
All states 2
Item
117 Federal funds purchased and securities sold under
agreements to repurchase
IIS
U.S. branches and agencies of other foreign banks . . .
119
Other commercial banks in United States
120
Other
121 Other borrowed money
122 Owed to nonrelated commercial banks in United States
(including IBFs)
123
Owed to U.S. offices of nonrelated U.S. banks
124
Owed to U.S. branches and agencies of
nonrelated foreign banks
125 Owed to nonrelated banks in foreign countries
126
Owed to foreign branches of nonrelated U.S. banks . .
127
Owed to foreign offices of nonrelated foreign b a n k s . . .
128 Owed to others
Total
including
IBFs
New York
Total
including
IBFs
IBFs
only 3
California
Total
including
IBFs
IBFs
only 3
Illinois
Total
including
IBFs
IBFs
only 3
IBFs
only 3
41,345
14,924
10,560
15,862
80,692
2,825
1,496
220
1,109
29,876
31,420
10,034
7,385
14,000
44,175
1,482
649
85
748
12, 388
7,889
3,977
2,256
1,655
29,012
1,194
731
,25
338
13,474
1,458
714
620
124
6,071
49
32
0
17
3,652
55,805
25,018
12,557
2,513
30,336
15,691
3,699
931
21,592
7,592
7,967
1,352
2,704
1,037
698
119
30,787
16,660
2,519
14,142
8,227
10,044
15,734
2,379
13,354
1,585
14,645
7,704
822
6,882
6,135
2,768
7,170
747
6,423
1.520
13,999
5,777
1,276
4,501
1,643
6,615
5,442
1,211
4,231
65
1,667
2,991
316
2,675
377
5/9
2,954
316
2,638
0
129 All other liabilities
Branch or agency liability on acceptances executed
130
and outstanding
131
Other liabilities to nonrelated parties
33,918
2,755
26,055
2,075
6,882
446
646
194
25,581
8,337
n a.
2,755
19,253
6,802
n a.
2,075
5,908
975
n a.
446
238
408
n a.
194
132 Net due to related depository institutions 5
133
Net due to head office and other related
depository institutions 5
Net due to establishing entity, head office, and other
134
related depository institutions 5
50,331
25,126
27,548
19,233
6,875
3,294
8,692
2,211
50,331
n a.
27,548
n a.
6,875
n.a.
8,692
n a.
n.a.
25,126
n.a.
19,233
n.a.
3,294
n.a.
2,211
MEMO
135 Non-interest bearing balances with commercial banks
in United States
136 Holding of commercial paper included in total loans . . . .
137 Holding of own acceptances included in commercial
and industrial loans
138 Commercial and industrial loans with remaining maturity
of one year or less
139
Predetermined interest rates
Floating interest rates
140
141 Commercial and industrial loans with remaining maturity
of more than one year
142
Predetermined interest rates
143
Floating interest rates
2,237
639
2
2,011
483
2
114
60
0
49
91
3,649
2,711
678
123
56,370
34,127
22,243
35,080
20,035
15,045
10,700
7,560
3,140
6,119
4,159
1,960
0
37,463
12,733
24,730
n a.
25,261
7,906
17,356
n.a.
6,552
2,672
3,880
n a.
2,919
1,453
1,466
n a.
U.S. Branches
4.30
and Agencies
A73
Continued
M i l l i o n s of d o l l a r s
All states 2
Item
144 Components of total nontransaction accounts,
included in total deposits and credit balances of
nontransactional accounts, including IBFs
145
Time CDs in denominations of $100,000 or more
146
Other time deposits in denominations of $100,000
or more
147
Time CDs in denominations of $100,000 or more
with remaining maturity of more than
12 months
Total
excluding
IBFs
57,870
36,629
7,355
13,886
New York
Total
excluding
IBFs
IBFs
only 3
1
J
n.a.
All states 2
Total
including
IBFs
148 Market value of securities held
150 Immediately available funds with a maturity greater than
one day included in other borrowed money
IBFs
only 3
I
I
50,254
30,880
n.a.
6,870
12,504
New York
Total
including
IBFs
IBFs
only 3
Total
excluding
IBFs
1,407
1,058
185
IBFs
only 3
I
1
Total
including
IBFs
IBFs
only 3
8,171
23,861
6,227
3,631
1,641
52,159
n.a.
28,929
n.a.
20,446
n.a.
1. Data are aggregates of categories reported on the quarterly form FF1EC 002,
"Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign
Banks." Details may not add to totals because of rounding. This form was first
used for reporting data as of June 30, 1980, and was revised as of December 31,
1985. From November 1972 through May 1980, U.S. branches and agencies of
foreign banks had filed a monthly FR 886a report. Aggregate data from that report
were available through the Federal Reserve statistical release G. 11, last issued on
July 10, 1980. Data in this table and in the G. 11 tables are not strictly comparable
because of differences in reporting panels and in definitions of balance sheet
items.
2. Includes the District of Columbia.
3. Effective December 1981, the Federal Reserve Board amended Regulations
D and Q to permit banking offices located in the United States to operate
International Banking Facilities (IBFs). As of December 31, 1985, data for IBFs
are reported in a separate column. These data are either included in or excluded
from the total columns as indicated in the headings. The notation " n . a . " indicates
221
Total
excluding
IBFs
3,040
2,120
230
n.a.
164
California
IBFs
only 3
Illinois
29,353
488
California
122
IBFs
only 3
t
1
n.a.
689
Illinois
Total
including
IBFs
873
1,794
IBFs
only 3
209
n.a.
47
that no IBF data are reported for that item, either because the item is not an
eligible IBF asset or liability or because that level of detail is not reported for
IBFs. From December 1981 through September 1985, IBF data were included in
all applicable items reported.
4. Total assets and total liabilities include net balances, if any, due from or due
to related banking institutions in the United States and in foreign countries (see
footnote 5). On the former monthly branch and agency report, available through
the G . l l statistical release, gross balances were included in total assets and total
liabilities. Therefore, total asset and total liability figures in this table are not
comparable to those in the G . l l tables.
5. "Related banking institutions" includes the foreign head office and other
U.S. and foreign branches and agencies of the bank, the bank's parent holding
company, and majority-owned banking subsidiaries of the bank and of its parent
holding company (including subsidiaries owned both directly and indirectly).
6. In some cases two or more offices of a foreign bank within the same
metropolitan area file a consolidated report.
A74
Federal Reserve Board of Governors
Chairman
Vice Chairman
M A R T H A R . SEGER
M A N U E L H . JOHNSON,
WAYNE D .
OFFICE
MEMBERS
DIVISION
P A U L A . VOLCKER,
OF BOARD
JOSEPH R. COYNE, Assistant
to the Board
DONALD J. WINN, Assistant
to the Board
NORMAND R . V . BERNARD, Special Assistant
LYNN SMITH FOX, Special Assistant
to the
BOB S. MOORE, Special Assistant
LEGAL
to the
Board
Board
to the Board
DIVISION
MICHAEL BRADFIELD, General
Counsel
J. VIRGIL MATTINGLY, JR., Deputy General
Counsel
RICHARD M. ASHTON, Associate
General
Counsel
OLIVER IRELAND, Associate
General
Counsel
RICKI R. TIGERT, Assistant
General
Counsel
MARYELLEN A . BROWN, Assistant
to the General
Counsel
OFFICE
OF THE
SECRETARY
ANGELL
OF RESEARCH
JAMES L. KICHLINE, Staff
EDWARD C. ETTIN, Deputy
DONALD L. KOHN, Deputy
(Monetary
AND
STATISTICS
Director
Director
Director
Policy and Financial
Markets)
MICHAEL J. PRELL, Deputy
Director
JARED J. ENZLER, Associate
Director
Director
DAVID E . LINDSEY, Associate
ELEANOR J. STOCKWELL, Associate
Director
MARTHA BETHEA, Deputy Associate
Director
THOMAS D . SIMPSON, Deputy Associate
Director
LAWRENCE SLIFMAN, Deputy Associate
Director
PETER A . TINSLEY, Deputy Associate
Director
SUSAN J. LEPPER, Assistant
Director
RICHARD D . PORTER, Assistant
Director
MARTHA S. SCANLON, Assistant
Director
JOYCE K . ZICKLER, Assistant
Director
LEVON H . GARABEDIAN, Assistant
Director
(Admin is t rat ion)
WILLIAM W . WILES,
Secretary
BARBARA R. LOWREY, Associate
Secretary
JAMES MCAFEE, Associate
Secretary
DIVISION OF
CONSUMER
AND COMMUNITY
AFFAIRS
GRIFFITH L . GARWOOD,
Director
GLENN E . LONEY, Assistant
ELLEN MALAND, Assistant
DOLORES S. SMITH, Assistant
DIVISION
OF
SUPERVISION
Director
Director
Director
BANKING
AND
REGULATION
WILLIAM TAYLOR, Staff
Director
FRANKLIN D . DREYER, Deputy
Director'
DON E. KLINE, Associate
Director
FREDERICK M. STRUBLE, Associate
Director
WILLIAM A . RYBACK, Deputy Associate
Director
STEPHEN C. SCHEMERING, Deputy Associate
Director
RICHARD SPILLENKOTHEN, Deputy Associate
Director
HERBERT A . BIERN, Assistant
Director
JOE M. CLEAVER, Assistant
Director
ANTHONY CORNYN, Assistant
Director
JAMES I. GARNER, Assistant
Director
JAMES D . GOETZINGER, Assistant
Director
MICHAEL G . MARTINSON, Assistant
Director
ROBERT S. PLOTKIN, Assistant
Director
SIDNEY M. SUSSAN, Assistant
Director
LAURA M. HOMER, Securities
Credit
Officer
1. On loan from the Federal Reserve Bank of Chicago.
DIVISION
OF INTERNATIONAL
FINANCE
EDWIN M . TRUMAN, Staff
Director
LARRY J. PROMISEL, Senior Associate
Director
CHARLES J. SIEGMAN, Senior Associate
Director
DAVID H . HOWARD, Deputy Associate
Director
ROBERT F. GEMMILL, Staff
Adviser
DONALD B. ADAMS, Assistant
Director
PETER HOOPER III, Assistant
Director
KAREN H . JOHNSON, Assistant
Director
RALPH W . SMITH, JR., Assistant
Director
A75
and Official Staff
H . ROBERT HELLER
E D W A R D W . K E L L E Y , JR.
OFFICE
OFFICE
OF
STAFF DIRECTOR
FOR
FEDERAL
MANAGEMENT
S. DAVID FROST, Staff Director
EDWARD T. MULRENIN, Assistant Staff Director
PORTIA W. THOMPSON, Equal Employment
Opportunity
Programs
Officer
OF
PERSONNEL
DAVID L. SHANNON,
OF THE
DIVISION
OF FEDERAL
CONTROLLER
DIVISION
Controller
OF SUPPORT
ROBERT E . FRAZIER,
SERVICES
Director
GEORGE M. LOPEZ, Assistant
Director
DAVID L. WILLIAMS, Assistant
Director
OFFICE
OF THE EXECUTIVE
INFORMATION
DIRECTOR
RESOURCES
FOR
MANAGEMENT
ALLEN E. BEUTEL, Executive
Director
Director
STEPHEN R. MALPHRUS, Associate
DIVISION
OF HARDWARE
AND
SOFTWARE
SYSTEMS
BRUCE M . BEARDSLEY,
Director
THOMAS C. JUDD, Assistant
Director
ELIZABETH B. RIGGS, Assistant
Director
ROBERT J. ZEMEL, Assistant
Director
DIVISION
OF APPLICATIONS
STATISTICAL
DEVELOPMENT
SERVICES
WILLIAM R . JONES,
Director
DAY W. RADEBAUGH, Assistant
RICHARD C. STEVENS, Assistant
PATRICIA A. WELCH, Assistant
Director
RESERVE
OPERATIONS
FLORENCE M . Y O U N G ,
Controller
BRENT L. BOWEN, Assistant
Director
Director
Director
FOR
ACTIVITIES
Director
ELLIOTT C. MCENTEE, Associate
Director
DAVID L. ROBINSON, Associate
Director
C. WILLIAM SCHLEICHER, JR., Associate
Director
CHARLES W. BENNETT, Assistant
Director
JACK DENNIS, JR., Assistant
Director
EARL G. HAMILTON, Assistant
Director
JOHN H. PARRISH, Assistant
Director
Director
GEORGE E . LIVINGSTON,
BANK
CLYDE H . FARNSWORTH, JR.,
JOHN R. WEIS, Assistant
Director
CHARLES W. WOOD, Assistant
Director
OFFICE
RESERVE
THEODORE E. ALLISON, Staff
BANK
DIVISION
OF STAFF DIRECTOR
AND
Adviser
A76
Federal Reserve Bulletin • August 1987
Federal Open Market Committee
FEDERAL
OPEN
MARKET
COMMITTEE
MEMBERS
PAUL A . VOLCKER,
E. GERALD CORRIGAN, Vice
Chairman
WAYNE D . ANGELL
H . ROBERT H E L L E R
EDWARD G . BOEHNE
M A N U E L H . JOHNSON
M A R T H A R . SEGER
ROBERT H .
SILAS K E E H N
GARY H .
BOYKIN
E D W A R D W . K E L L E Y , JR.
ALTERNATE
MEMBERS
ROBERT P . FORRESTAL
ROBERT P . B L A C K
STERN
ROBERT T . PARRY
THOMAS M . TIMLEN
STAFF
DONALD L. KOHN, Secretary
and Staff
Adviser
NORMAND R . V . BERNARD, Assistant
Secretary
ROSEMARY R. LONEY, Deputy Assistant
Secretary
MICHAEL BRADFIELD, General
Counsel
JAMES H . OLTMAN, Deputy General
Counsel
JAMES L . K I C H L I N E ,
Economist
EDWIN M . TRUMAN, Economist
(International)
PETER FOUSEK, Associate
Economist
RICHARD W . LANG, Associate
DAVID E. LINDSEY, Associate
MICHAEL J. PRELL, Associate
ARTHUR J. ROLNICK, Associate
HARVEY ROSENBLUM, Associate
KARL A . SCHELD, Associate
CHARLES J. SIEGMAN, Associate
THOMAS D . SIMPSON, Associate
Economist
Economist
Economist
Economist
Economist
Economist
Economist
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
JOHN G . M E D L I N JR.,
JULIEN L . MCCALL, Vice
President
President
J O H N F . M C G I L L I C U D D Y , D E W A L T H . A N K E N Y , J R . , A N D F . PHILLIPS G I L T N E R ,
JOHN P. LA WARE, First District
JOHN F. MCGILLICUDDY, S e c o n d District
SAMUEL A . MCCULLOUGH, Third District
JULIEN L . MCCALL, Fourth District
JOHN G. MEDLIN, JR., F i f t h District
BENNETT A . BROWN, Sixth District
Directors
CHARLES T. FISHER, III, S e v e n t h District
DONALD N . BRANDIN, Eighth District
DEWALT H . ANKENY, JR., N i n t h District
F. PHILLIPS GILTNER, T e n t h District
GERALD W . FRONTERHOUSE, E l e v e n t h District
JOHN D . MANGELS, T w e l f t h District
H E R B E R T V . P R O C H N O W , SECRETARY
W I L L I A M J. KORSVIK, ASSOCIATE SECRETARY
Chairman
All
and Advisory Councils
CONSUMER
ADVISORY
COUNCIL
EDWARD N. LANGE, Seattle, Washington, Chairman
STEVEN W. HAMM, Columbia, South Carolina, Vice Chairman
JUDITH N . BROWN, E d i n a , M i n n e s o t a
MICHAEL S. CASSIDY, N e w Y o r k , N e w Y o r k
JOHN M . KOLESAR, C l e v e l a n d , O h i o
ALAN B. LERNER, Dallas, T e x a s
FRED S. MCCHESNEY, C h i c a g o , Illinois
RICHARD L. D . MORSE, Manhattan, K a n s a s
THERESA FAITH C U M M I N G S , S p r i n g f i e l d , I l l i n o i s
HELEN E. NELSON, Mill Valley, California
RICHARD B. DOBY, D e n v e r , C o l o r a d o
SANDRA R. PARKER, R i c h m o n d , Virginia
JOSEPH L. PERKOWSKI, C e n t e r v i l l e , M i n n e s o t a
BRENDA L. SCHNEIDER, Detroit, M i c h i g a n
JANE SHULL, Philadelphia, P e n n s y l v a n i a
EDWIN B . BROOKS, JR., R i c h m o n d , Virginia
JONATHAN A . B R O W N , W a s h i n g t o n ,
RICHARD H . FINK, W a s h i n g t o n ,
D.C.
D.C.
NEIL J. FOGARTY, Jersey City, N e w Jersey
STEPHEN GARDNER, D a l l a s , T e x a s
KENNETH A . HALL, J a c k s o n , Mississippi
ROBERT J. HOBBS, B o s t o n , M a s s a c h u s e t t s
TED L. SPURLOCK, Dallas, Texas
MEL R. STILLER, Boston, Massachusetts
CHRISTOPHER J. SUMNER, Salt Lake City, Utah
RAMON E. JOHNSON, Salt Lake City, Utah
ROBERT W. JOHNSON, West Lafayette, Indiana
EDWARD J. WILLIAMS, C h i c a g o , Illinois
MICHAEL ZOROYA, St. L o u i s , Missouri
ELENA G. HANGGI, Little Rock, Arkansas
THRIFT INSTITUTIONS
ADVISORY
COUNCIL
MICHAEL R. WISE, Denver, Colorado, President
JAMIE J. JACKSON, Houston, Texas, Vice President
GERALD M . CZARNECKI, M o b i l e , A l a b a m a
JOHN C. DICUS, T o p e k a , K a n s a s
BETTY GREGG, P h o e n i x , A r i z o n a
THOMAS A. KINST, Hoffman Estates, Illinois
RAY MARTIN, LOS Angeles, California
DONALD F. MCCORMICK, L i v i n g s t o n , N e w J e r s e y
JANET M . PAVLISKA, Arlington, M a s s a c h u s e t t s
HERSCHEL ROSENTHAL, M i a m i , Florida
WILLIAM G. SCHUETT, M i l w a u k e e , W i s c o n s i n
GARY L. SIRMON, Walla Walla, Washington
A78
Federal Reserve Board Publications
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THE
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FUNC-
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B A N K I N G A N D M O N E T A R Y STATISTICS. 1 9 1 4 - 1 9 4 1 .
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P U B L I C POLICY A N D
1976.
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R E G U L A T I O N S OF T H E B O A R D OF G O V E R N O R S OF THE F E D ERAL R E S E R V E S Y S T E M .
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MOVEMENT
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CONSUMER
EDUCATION
PAMPHLETS
Short pamphlets suitable for classroom use. Multiple
are available without
charge.
copies
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
Fair Credit Billing
Federal Reserve Glossary
A Guide to Business Credit and the Equal Credit Opportunity
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Guide to Federal Reserve Regulations
How to File A Consumer Credit Complaint
If You Borrow To Buy Stock
If You Use A Credit Card
Series on the Structure of the Federal Reserve
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The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Organization and Advisory Committees
What Truth in Lending Means to You
A79
PAMPHLETS
FOR FINANCIAL
INSTITUTIONS
Short pamphlets on regulatory compliance, primarily suitable for banks, bank holding companies and creditors.
R E V I E W OF THE T E C H N I Q U E S A N D L I T E R A T U R E ,
by
Kenneth Rogoff. October 1983. 15 pp.
133. RELATIONSHIPS
AMONG
EXCHANGE
RATES,
INTER-
V E N T I O N , A N D I N T E R E S T R A T E S : A N EMPIRICAL I N -
VESTIGATION, by Bonnie E. Loopesko.
1983. Out of print.
Limit of 50 copies
134.
November
S M A L L EMPIRICAL M O D E L S OF E X C H A N G E
MARKET
I N T E R V E N T I O N : A R E V I E W OF THE L I T E R A T U R E ,
The Board of Directors' Opportunities in Community Reinvestment
The Board of Directors' Role in Consumer Law Compliance
Combined Construction/Permanent Loan Disclosure and
Regulation Z
Community Development Corporations and the Federal Reserve
Construction Loan Disclosures and Regulation Z
Finance Charges Under Regulation Z
How to Determine the Credit Needs of Your Community
Regulation Z: The Right of Rescission
The Right to Financial Privacy Act
Signature Rules in Community Property States: Regulation B
Signature Rules: Regulation B
Timing Requirements for Adverse Action Notices: Regulation B
What An Adverse Action Notice Must Contain: Regulation B
Understanding Prepaid Finance Charges: Regulation Z
by
Ralph W. Tryon. October 1983. 14 pp. Out of print.
135.
S M A L L EMPIRICAL M O D E L S OF E X C H A N G E
MARKET
I N T E R V E N T I O N : A P P L I C A T I O N S TO C A N A D A , G E R M A -
NY, AND JAPAN, by Deborah J. Danker, Richard A.
Haas, Dale W. Henderson, Steven A. Symansky, and
Ralph W. Tryon. April 1985. 27 pp. Out of print.
1 3 6 . T H E E F F E C T S OF F I S C A L POLICY ON THE U . S . E C O N O -
MY, by Darrell Cohen and Peter B. Clark. January
1984. 16 pp. Out of print.
1 3 7 . T H E IMPLICATIONS
FINANCIAL
AND
FOR B A N K
DEREGULATION,
FINANCIAL
M E R G E R POLICY
INTERSTATE
SUPERMARKETS,
by
OF
BANKING,
Stephen
A.
Rhoades. February 1984. Out of print.
138. ANTITRUST
LAWS,
JUSTICE
DEPARTMENT
GUIDE-
LINES, A N D THE L I M I T S OF C O N C E N T R A T I O N IN L O -
CAL BANKING MARKETS, by James Burke. June 1984.
14 pp. Out of print.
1 3 9 . S O M E IMPLICATIONS OF F I N A N C I A L I N N O V A T I O N S IN
THE UNITED STATES, b y T h o m a s D . S i m p s o n and
Patrick M. Parkinson. August 1984. 20 pp.
1 4 0 . GEOGRAPHIC M A R K E T D E L I N E A T I O N : A R E V I E W OF
STAFF
Summaries
STUDIES.
Only Printed in the
THE LITERATURE, by John D. Wolken. November
1984. 38 pp. Out of print.
Bulletin
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.
1 4 1 . A COMPARISON OF D I R E C T D E P O S I T A N D C H E C K P A Y -
MENT COSTS, by William Dudley. November 1984.
15 pp. Out of print.
1 4 2 . MERGERS
AND
ACQUISITIONS
BY
COMMERCIAL
BANKS, 1 9 6 0 - 8 3 , by S t e p h e n A . R h o a d e s . D e c e m b e r
1984. 30 pp. Out of print.
Staff Studies 115-125 are out of print.
143. COMPLIANCE
THE
114. MULTIBANK
HOLDING
COMPANIES:
RECENT
COSTS A N D
ELECTRONIC
CONSUMER
FUND
TRANSFER
BENEFITS
ACT:
OF
RECENT
EVI-
SURVEY EVIDENCE, by Frederick J. Schroeder. April
1985. 23 pp. Out of print.
IN
1 4 4 . S C A L E E C O N O M I E S IN C O M P L I A N C E COSTS FOR C O N -
BANKING MARKETS, by Timothy J. Curry and John T.
Rose. Jan. 1982. 9 pp.
SUMER C R E D I T R E G U L A T I O N S : T H E T R U T H IN L E N D -
1 2 6 . D E F I N I T I O N A N D M E A S U R E M E N T OF E X C H A N G E M A R -
Gregory E. Elliehausen and Robert D. Kurtz. May
1 9 8 5 . 10 pp.
DENCE
ON
COMPETITION
AND
PERFORMANCE
KET INTERVENTION, by Donald B. Adams and Dale
W. Henderson. August 1983. 5 pp. Out of print.
ING A N D
EQUAL
CREDIT
OPPORTUNITY
LAWS,
1 4 5 . SERVICE C H A R G E S AS A S O U R C E OF B A N K
AND
L.
Canner and Robert D. Kurtz. August 1985. 31 pp. Out
of print.
E X P E R I E N C E W I T H E X C H A N G E M A R K E T INTER-
1 4 6 . T H E R O L E OF THE PRIME R A T E IN THE PRICING OF
JANUARY-MARCH
1975,
by
Margaret
Greene. August 1984. 16 pp. Out of print.
128.
U.S.
IMPACT ON
CONSUMERS,
by
INCOME
U . S . E X P E R I E N C E W I T H E X C H A N G E M A R K E T INTERVENTION:
127.
THEIR
by
Glenn
VENTION: SEPTEMBER 1 9 7 7 - D E C E M B E R 1979, b y M a r 129.
B U S I N E S S L O A N S BY C O M M E R C I A L B A N K S ,
garet L. Greene. October 1984. 40 pp. Out of print.
B.
by Thomas F. Brady. November 1985. 25 pp.
U . S . E X P E R I E N C E W I T H E X C H A N G E M A R K E T INTER-
147. REVISIONS
IN
THE
MONETARY
SERVICES
1977-84,
(DIVISIA)
V E N T I O N : OCTOBER I 9 8 O - O C T O B E R 1 9 8 1 , b y M a r g a r e t
L. Greene. August 1984. 36 pp.
130.
I N D E X E S OF THE M O N E T A R Y A G G R E G A T E S , b y
T. Farr and Deborah Johnson. December 1985. 42 pp.
E F F E C T S OF E X C H A N G E R A T E VARIABILITY ON
IN-
Helen
1 4 8 . T H E MACROECONOMIC A N D SECTORAL E F F E C T S
OF
T E R N A T I O N A L T R A D E A N D O T H E R ECONOMIC V A R I A -
THE E C O N O M I C RECOVERY T A X A C T : S O M E S I M U L A -
BLES: A R E V I E W OF THE L I T E R A T U R E , b y V i c t o r i a S .
TION RESULTS, by Flint Brayton and Peter B. Clark.
December 1985. 17 pp.
Farrell with Dean A. DeRosa and T. Ashby McCown.
January 1984. Out of print.
1 4 9 . T H E O P E R A T I N G P E R F O R M A N C E OF A C Q U I R E D FIRMS
IN B A N K I N G
1 3 1 . C A L C U L A T I O N S OF PROFITABILITY FOR U . S . D O L L A R DEUTSCHE
MARK
INTERVENTION,
by
Laurence
Jacobson. October 1983. 8 pp.
132. TIME-SERIES
TWEEN
STUDIES
EXCHANGE
OF
RATES
THE
AND
150.
RELATIONSHIP
INTERVENTION:
BEA
BEFORE A N D
AFTER A C Q U I S I T I O N ,
by
Stephen A. Rhoades. April 1986. 32 pp.
R.
STATISTICAL C O S T A C C O U N T I N G M O D E L S IN
ING: A
REEXAMINATION
BANK-
A N D AN A P P L I C A T I O N ,
by
John T. Rose and John D. Wolken. May 1986. 13 pp.
A80
151.
RESPONSES
PRICING
TO
FROM
DEREGULATION:
1983
THROUGH
RETAIL
1985,
by
DEPOSIT
Patrick
I.
Mahoney, Alice P. White, Paul F. O'Brien, and Mary
M. McLaughlin. January 1987. 30 pp.
152.
D E T E R M I N A N T S OF CORPORATE M E R G E R A C T I V I T Y : A
REVIEW
OF THE
LITERATURE,
by
Mark
J.
War-
shawsky. April 1987. 18 pp.
REPRINTS
OF BULLETIN
ARTICLES
Bank Lending to Developing Countries. 10/84.
Survey of Consumer Finances, 1983: A Second Report.
12/84.
Union Settlements and Aggregate Wage Behavior in the
1980s. 12/84.
The Thrift Industry in Transition. 3/85.
A Revision of the Index of Industrial Production. 7/85.
Financial Innovation and Deregulation in Foreign Industrial
Countries. 10/85.
Recent Developments in the Bankers Acceptance Market.
1/86.
Most of the articles reprinted
do not exceed 12
pages.
Limit of 10 copies
Foreign Experience with Targets for Money Growth. 10/83.
Intervention in Foreign Exchange Markets: A Summary of
Ten Staff Studies. 11/83.
A Financial Perspective on Agriculture. 1/84.
Survey of Consumer Finances, 1983. 9/84.
The Use of Cash and Transaction Accounts by American
Families. 2/86.
Financial Characteristics of High-Income Families. 3/86.
Prices, Profit Margins, and Exchange Rates. 6/86.
Agricultural Banks under Stress. 7/86.
Foreign Lending by Banks: A Guide to International and
U.S. Statistics. 10/86.
Recent Developments in Corporate Finance. 11/86.
U.S. International Transactions in 1986. 5/87.
A81
Index to Statistical Tables
References
are to pages A3-A73 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 19, 20
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, 70-73
Nonfinancial corporations, 36
Automobiles
Consumer installment credit, 40, 41
Production, 47, 48
BANKERS acceptances, 9, 23, 24
Bankers balances, 18-20 (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 34
Rates, 24
Branch banks, 21, 55, 70-73
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 36
Business loans CSV? 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, 73
Weekly reporting banks, 19-21
Commercial banks
Assets and liabilities, 18-20, 73
Commercial and industrial loans, 16, 18, 19, 20, 21, 73
Consumer loans held, by type, and terms, 40, 41
Loans sold outright, 19
Nondeposit funds, 17
Real estate mortgages held, by holder and property, 39
Time and savings deposits, 3
Commercial paper, 23, 24, 37
Condition statements (See Assets and liabilities)
Construction, 44, 49
Consumer installment credit, 40, 41
Consumer prices, 44, 50
Consumption expenditures, 51, 52
Corporations
Nonfinancial, assets and liabilities, 36
Profits and their distribution, 35
Security issues, 34, 65
Cost of living (See Consumer prices)
Credit unions, 26, 40. (See also Thrift institutions)
Currency and coin, 18
Currency in circulation, 4, 13
Customer credit, stock market, 25
DEBITS to deposit accounts, 15
Debt (See specific types of debt or
Demand deposits
Banks, by classes, 18-21
securities)
Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 22
Turnover, 15
Depository institutions
Reserve requirements, 8
Reserves and related items, 3, 4, 5, 12
Deposits (See also specific types)
Banks, by classes, 3, 18-20, 21
Federal Reserve Banks, 4, 10
Turnover, 15
Discount rates at Reserve Banks and at foreign central
banks and foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
EMPLOYMENT, 45
Eurodollars, 24
FARM mortgage loans, 39
Federal agency obligations, 4, 9, 10, 11, 31, 32
Federal credit agencies, 33
Federal finance
Debt subject to statutory limitation, and types and
ownership of gross debt, 30
Receipts and outlays, 28, 29
Treasury financing of surplus, or deficit, 28
Treasury operating balance, 28
Federal Financing Bank, 28, 33
Federal funds, 6, 17, 19, 20, 21, 24, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 38, 39
Federal Housing Administration, 33, 38, 39
Federal Land Banks, 39
Federal National Mortgage Association, 33, 38, 39
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 4, 10, 11, 30
Federal Reserve credit, 4, 5, 10, 11
Federal Reserve notes, 10
Federal Savings and Loan Insurance Corporation insured
institutions, 26
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 37
Business credit, 37
Loans, 40, 41
Paper, 23, 24
Financial institutions
Loans to, 19, 20, 21
Selected assets and liabilities, 26
Float, 4
Flow of funds, 42, 43
Foreign banks, assets and liabilities of U.S. branches and
agencies, 21, 70-73
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
A82
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
Consumer installment credit, 41
Federal Reserve Banks, 7
Foreign central banks and foreign countries, 67
Money and capital markets, 24
Mortgages, 38
Prime rate, 23
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, 76
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, 76
Federal Reserve Banks, 4, 5, 7, 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, 6
Reserve requirements, 8
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 , 1 3
Mortgages (See Real estate loans)
Mutual funds, 35
Mutual savings banks, (See Thrift institutions)
NATIONAL defense outlays, 29
National income, 51
OPEN market transactions, 9
PERSONAL income, 52
Prices
Consumer and producer, 44, 50
Stock market, 25
Prime rate, 23
Producer prices, 44, 50
Production, 44, 47
Profits, corporate, 35
REAL estate loans
Banks, by classes, 16, 19, 20, 39
Real estate loans—continued
Financial institutions, 26
Terms, yields, and activity, 38
Type of holder and property mortgaged, 39
Repurchase agreements, 6, 17, 19, 20, 21
Reserve requirements, 8
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, 26, 39, 40, 42. (See also
Thrift institutions)
Savings banks, 26, 39, 40
Savings deposits (See Time and savings deposits)
Securities (See specific types)
Federal and federally sponsored credit agencies, 33
Foreign transactions, 65
New issues, 34
Prices, 25
Special drawing rights, 4, 10, 53, 54
State and local governments
Deposits, 19, 20
Holdings of U.S. government securities, 30
New security issues, 34
Ownership of securities issued by, 19, 20, 26
Rates on securities, 24
Stock market, selected statistics, 25
Stocks (See also Securities)
New issues, 34
Prices, 25
Student Loan Marketing Association, 33
TAX receipts, federal, 29
Thrift institutions, 3. (See also Credit unions and Savings
and loan associations)
Time and savings deposits, 3, 13, 17, 18, 19, 20, 21
Trade, foreign, 54
Treasury cash, Treasury currency, 4
Treasury deposits, 4, 10, 28
Treasury operating balance, 28
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 18, 19, 20
Treasury deposits at Reserve Banks, 4, 10, 28
U.S. government securities
Bank holdings, 18-20, 21, 30
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 4, 10, 11, 30
Foreign and international holdings and transactions, 10,
30, 66
Open market transactions, 9
Outstanding, by type and holder, 26, 30
Rates, 24
U.S. international transactions, 53-67
Utilities, production, 48
VETERANS Administration, 38, 39
WEEKLY reporting banks, 19-21
Wholesale (producer) prices, 44, 50
YIELDS (See Interest rates)
A83
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
George N. Hatsopoulos
Frank E. Morris
Robert W. Eisenmenger
NEW YORK*
10045
John R. Opel
Virginia A. Dwyer
Mary Ann Lambertsen
E. Gerald Corrigan
Thomas M. Timlen
Buffalo
14240
Vice President
in charge of branch
John T. Keane
PHILADELPHIA
19105
Nevius M. Curtis
George E. Bartol III
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101
Charles W. Parry
John R. Miller
Owen B. Butler
James E. Haas
vacancy
William H. Hendricks
Leroy T. Canoles, Jr.
Robert A. Georgine
Gloria L. Johnson
Wallace J. Jorgenson
Robert P. Black
Jimmie R. Monhollon
Bradley Currey, Jr.
Larry L. Prince
A. G. Trammell
Andrew A. Robinson
Robert D. Apelgren
C. Warren Neel
Caroline K. Theus
Robert P. Forrestal
Jack Guynn
Robert J. Day
Marcus Alexis
Robert E. Brewer
Silas Keehn
Daniel M. Doyle
W.L. Hadley Griffin
Robert L. Virgil, Jr.
James R. Rodgers
Raymond M. Burse
Katherine H. Smythe
Thomas C. Melzer
Joseph P. Garbarini
John B. Davis, Jr.
Michael W. Wright
Warren H. Ross
Gary H. Stern
Thomas E. Gainor
Irvine O. Hockaday, Jr.
Robert G. Lueder
James E. Nielson
Patience S. Latting
Kenneth L. Morrison
Roger Guffey
Henry R. Czerwinski
Bobby R. Inman
Hugh G. Robinson
Mary Carmen Saucedo
Walter M. Mischer, Jr.
Robert F. McDermott
Robert H. Boykin
William H. Wallace
Fred W. Andrew
Robert F. Erburu
Richard C. Seaver
Paul E. Bragdon
Don M. Wheeler
John W. Ellis
Robert T. Parry
Carl E. Powell
Cincinnati
Pittsburgh
45201
15230
RICHMOND*
23219
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30303
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75222
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Charles A. Cerino 1
Harold J. Swart1
Robert D. McTeer, Jr.1
Albert D. Tinkelenberg 1
John G. Stoides 1
Delmar Harrison1
Fred R. Herr1
James D. Hawkins 1
Patrick K. Barron1
Donald E. Nelson
Henry H. Bourgaux
Roby L. Sloan 1
John F. Breen
James E. Conrad
Paul I. Black, Jr.
Robert F. McNellis
Enis Alldredge, Jr.
William G. Evans
Robert D. Hamilton
Tony J. Salvaggio 1
Sammie C. Clay
J. Z. Rowe 1
Thomas H. Robertson
Thomas C. Warren2
Angelo S. Carella1
E. Ronald Liggett 1
Gerald R. Kelly 1
*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, N e w Jersey 07016;
Jericho, N e w York 11753; Utica at Oriskany, N e w York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
Digitized for 1. Senior Vice President.
FRASER
2. Executive Vice
http://fraser.stlouisfed.org/ President.
Federal Reserve Bank of St. Louis
A84
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
Helena
Minneapolis
^
jS'l'Lakea^
Denver*
@
Kansas
\
'yfosj
"ge/es
City
\Oklahoma
City.
Dallas®
,
\San
Houston
Antonio
April 1984
LEGEND
Boundaries of Federal Reserve Districts
®
Federal Reserve Bank Cities
Boundaries of Federal Reserve Branch
Territories
*
Federal Reserve Branch Cities
Federal Reserve Bank Facility
Q
Board of Governors of the Federal Reserve
System
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 $200 for
the Federal Reserve Regulatory Service and $75 for
each handbook. For subscribers outside the United
States, the price including additional air mail costs is
$250 for the Service and $90 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.
Publications of Interest
FEDERAL
RESERVE
CONSUMER
CREDIT
PUBLICATIONS
The Federal Reserve Board publishes a series of
pamphlets covering individual credit laws and topics,
as pictured below. The series includes such subjects as
how the Equal Credit Opportunity Act protects women against discrimination in their credit dealings, how
to use a credit card, and how to use Truth in Lending
information to compare credit costs.
What
Thithln
Lending
Means
To You
The Board also publishes the Consumer Handbook
to Credit Protection Laws, a complete guide to consumer 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.
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.
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