Full text of Federal Reserve Bulletin : August 1989
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VOLUME 75 •
NUMBER 8 •
AUGUST 1989
FEDERAL RESERVE
BULLETIN
B O A R D OF GOVERNORS OF THE F E D E R A L RESERVE S Y S T E M , W A S H I N G T O N ,
D.C.
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood
• Donald L. Kohn • J. Virgil Mattingly, Jr. • Michael J. Prell • 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
527 MONETARY POLICY REPORT
TO THE CONGRESS
In response to policy actions by the Federal
Reserve and to expectations that additional
tightening moves might be needed, market
interest rates climbed throughout the first
quarter, and money growth was subdued.
Over the course of the second quarter,
several indicators suggested the emergence
of conditions that were more conducive to a
future easing of inflationary pressures. In
this environment, interest rates turned
down during the spring. The System began
to provide reserves slightly more generously through open market operations at
the beginning of June and took an additional
small easing step in July. By mid-July, most
short-term interest rates were down about
Vz percentage point from their December
levels, while long-term rates had fallen as
much as 1 percentage point on balance.
540 PRICED SERVICES,
1988 AND 1989
Since 1981, under the mandate of the Monetary Control Act of 1980, the Federal
Reserve has been charging fees for the
services it provides to depository institutions—fees that must, over the long run,
cover the full costs of those services. In
1988, the Federal Reserve System received $801.7 million in fees for its priced
services and incurred $796.6 million in
costs for a recovery rate of 100.6 percent.
548 INDUSTRIAL
PRODUCTION
Industrial production was unchanged in
May after having increased a revised 0.6
percent in April.
550 STATEMENTS
TO CONGRESS
Martha R. Seger, member, Board of Governors, discusses the Community Reinvestment Act, the Government Check Cashing
Act of 1989, and the Basic Banking Services
Access Act of 1989, and says that the Board
opposes the basic banking and checkcashing bills because it believes that voluntary efforts by financial institutions will continue to be successful in meeting many of
the concerns that have been expressed
without the burden and cost that rules and
regulations inevitably impose, before the
Subcommittee on Consumer and Regulatory Affairs of the Senate Committee on
Banking, Housing, and Urban Affairs, June
7, 1989.
557 Alan Greenspan, Chairman, Board of Governors, in discussing the internationalization of securities markets, says that the
stability of our financial markets rests on
the performance of the world economy; and
although we can improve the safety and
soundness of our financial market systems,
we cannot eliminate all risks to those systems, before the Subcommittee on Securities of the Senate Committee on Banking,
Housing, and Urban Affairs, June 14, 1989.
563 William Taylor, Director, Division of Banking Supervision and Regulation, Board of
Governors, reviews bank supervisory policies regarding U.S. bank lending to developing countries and says that without further cooperation between borrowers and
lenders, credit quality will continue to deteriorate as more countries become unable
or unwilling to service their bank debts, and
banks with large exposures probably will
further strengthen their capital and reserve
levels, before the Subcommittee on International Development, Finance, Trade and
Monetary Policy of the House Committee
on Banking, Finance and Urban Affairs,
June 27, 1989.
566
AI FINANCIAL
AND BUSINESS
STATISTICS
These tables reflect data available
June 28, 1989.
as of
A3 Domestic Financial Statistics
A46 Domestic Nonfinancial Statistics
A55 International Statistics
ANNOUNCEMENTS
Resignation of H. Robert Heller as a member of the Board of Governors.
Amendments to Regulation Z.
A7i GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND SPECIAL
TABLES
Meeting of Consumer Advisory Council.
Policy statements on reduction of risk in the
payment system.
Revisions to the methodology for computing the private sector adjustment factor.
Proposed changes to the Board's policy on
large dollar payment system risk; proposal
to modify a restriction on underwriting of
asset-based securities of affiliates; proposal
to increase the revenue limit established by
the Board in its orders authorizing bank
holding company subsidiaries to underwrite
and deal in bank-ineligible securities.
569 LEGAL
DEVELOPMENTS
Various bank holding company, bank service corporation, and bank merger orders;
and pending cases.
A88 BOARD OF GOVERNORS AND STAFF
A90 FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISORY
COUNCILS
A92 FEDERAL RESERVE
PUBLICATIONS
BOARD
A94 INDEX TO STATISTICAL
TABLES
A96 FEDERAL RESERVE
BANKS,
BRANCHES, AND OFFICES
A97 MAP OF FEDERAL RESERVE
SYSTEM
Monetary Policy Report to the Congress
Report submitted to the Congress on July 20,
1989, pursuant to the Full Employment and Balanced Growth Act of 1978.1
MONETARY POLICY AND THE ECONOMIC
OUTLOOK FOR 1989 AND 1990
As 1989 began, a reduction in inflationary pressures appeared essential if the ongoing economic
expansion was to be sustained. Monetary policy
during 1988 had been directed toward reducing
the risks of an escalation of inflation and inflation
expectations, but at the time of the Board's
report to the Congress in February of this year,
success in that effort seemed far from assured.
Indeed, among the data reported in the early
part of 1989 were very large increases in the
producer and consumer price indexes, reflecting
not only the effects of run-ups in oil and agricultural commodity prices, but also broader inflationary developments, including unfavorable
trends in unit labor costs over the preceding
year. Under the circumstances, with pressures
on productive resources still intense, monetary
policy was tightened further. Reserve availability
was curtailed through open market operations,
and the discount rate was raised V2 percentage
point in late February. In response to these
policy actions and to expectations that additional
tightening moves might be needed, market interest rates climbed throughout the first quarter,
and money growth was subdued.
Over the course of the second quarter, several
indicators suggested the emergence of conditions
that were more conducive to a future easing of
inflationary pressures. Growth of the monetary
aggregates weakened further, with M2 running
noticeably below its target range for the year.
Aggregate demand for goods and services mod1. The charts for the report are available on request from
Publications Services, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.
erated, reducing somewhat the strains on productive resources, especially in the industrial
sector of the economy. The dollar exhibited
considerable strength in the foreign exchange
markets, portending a direct reduction in price
pressures and slower growth in demands on
domestic production capacity. Although the unemployment rate remained essentially unchanged in the neighborhood of 5lA percent—the
lowest level since the early 1970s—trends in
wages and total compensation showed little, if
any, further step-up, reflecting at least in part an
awareness among workers and management of
the need to contain costs in a highly competitive
world economy. Meanwhile, prices of actively
traded industrial commodities leveled out, enhancing the prospects for a broader slackening in
the pace of inflation.
In this environment, interest rates turned
down during the spring, as financial market participants responded not only to the better outlook
for inflation but also in anticipation of an easing
of monetary restraint by the Federal Reserve.
The System began to provide reserves slightly
more generously through open market operations
at the beginning of June and took an additional
small easing step in early July. This helped bring
about a further decline in market rates of interest, which by mid-July generally had more than
retraced the increases that had occurred earlier
in the year. Most short-term interest rates were
down about Vi percentage point from their December levels, while long-term rates had fallen as
much as 1 percentage point on balance.
Monetary Objectives for 1989 and 1990
In February, the Federal Open Market Committee (FOMC) specified a range for M2 growth in
1989 that was a full percentage point below that
of 1988 and ranges for M3 and debt that were V2
percentage point below those of the previous
year (table 1). This was the third consecutive
528
Federal Reserve Bulletin • August 1989
year in which the ranges had been lowered. At the
same time, the Committee recognized that, in light
of the continuing uncertainty regarding the shorterterm relation between monetary growth and
changes in income and spending, a variety of indicators of inflation pressures and economic activity
as well as the behavior of the aggregates would have
to be considered in determining policy.
In February, the Committee had anticipated
relatively slow money growth over the first half
of the year because of the effects of the firming of
policy through late 1988 and into 1989. In addition to the influence of the higher interest rates
on desired holdings of money, however, several
special factors—including the difficulties of the
thrift industry and a drawdown of liquid assets to
meet unusually large individual tax payments—
appear to have further reduced money balances
in the first half. These factors contributed to a
substantial rise in velocity, the ratio of nominal
GNP to the stock of money.
By June, money growth had picked up. Nonetheless, M2 ended the quarter just 2 percent at an
annual rate above the fourth quarter of last year,
compared with its annual growth range of 3 to 7
percent. In June, M3 was at the lower end of its
annual range of 3 ¥2 to IV2 percent. The rate of
expansion of domestic nonfinancial sector debt
also slowed in the first half of this year compared
with 1988, though by less than the monetary
aggregates; debt has grown about 8 percent so far
this year, near the middle of its monitoring range
of 6V2 t o IOV2 p e r c e n t .
At its meeting earlier this month, the Committee agreed to retain the current ranges for growth
of money and debt in 1989. The Committee
anticipates that by the fourth quarter all three
aggregates will be well within those ranges. The
more rapid growth in M2 and M3 already evident
since mid-May is expected to extend through the
second half. The recent declines in short-term
market interest rates have made M2 holdings
more attractive, tending to offset the restraining
effects on M2 of previous increases of interest
rates. With M2 expansion likely also to be
boosted by a further replenishing of liquid balances depleted by tax payments, this aggregate is
expected to grow a little faster than nominal
gross national product in the second half, bringing it into the lower portion of its annual growth
1. Ranges of growth
for monetary and credit aggregates
Percent change, fourth quarter to fourth quarter
Aggregate
M2
M3
Debt
1988
1989
Provisional
ranges
for 1990
4 to 8
4 to 8
7 to 11
3 to 7
3V4 to 7V4
614 to 10%
3 to 7
3 Vi to IV2
6% to 10V4
range. The faster growth of M2 should show
through at least in part to a quickening in M3
growth over the second half of the year, so that
this aggregate would move into the middle part of
its range. Domestic nonfinancial debt is likely to
remain in the middle portion of its range through
year-end.
For 1990, the Committee provisionally decided
to use, for all three aggregates, the same growth
ranges in force for 1989. The Committee recognized that the economic and financial outlook
over the next year and a half is uncertain; in
particular, it is unclear at this juncture whether
the velocities of M2 and M3 are more likely to
trend higher or lower next year. Although the
Committee's initial assessment is that growth of
money and credit through 1990 within the bounds
of the reduced ranges of this year likely would
foster the slower inflation and sustained real
economic expansion that it is seeking, it will
reevaluate the ranges next February in light of
the unfolding economic and financial situation.
The outlook for spending, prices, and financial
markets in 1990 should have clarified somewhat
by then, as should the influence on monetary
expansion of the ongoing resolution of thrift
industry problems. For the long term, the Committee recognized that ultimate attainment of
price stability will require that the ranges for
money and credit growth be reduced further in
future years.
Economic Projections for 1989 and 1990
Voting members of the Committee and other
Reserve Bank presidents believe that the monetary ranges specified are consistent with some
progress in reducing inflation, which likely will
be associated in the near term with the continuation of a slower pace of economic growth. The
Monetary Policy Report to the Congress
central tendency of the forecasts is for increases
in real GNP of 2 to 2Vi percent in 1989 and of 1 Vi
to 2 percent in 1990 (table 2).
The expected easing of pressures on resources
should contribute to a damping of inflation in
1990, although the Board members and Bank
presidents also are anticipating some near-term
relief from the special problems that boosted
prices in the first half of this year. Larger crops
later this year should result in more favorable
behavior of food prices, and the recent peaking
of crude oil prices suggests the likelihood of
some softening in consumer energy prices. Thus,
retail inflation should be considerably slower
over the remainder of this year, and the central
tendency of consumer price index forecasts for
1989 as a whole is 5 to 5Vi percent—compared
with the rate of more than 6 percent observed
through May. The forecasts for the consumer
price index in 1990 center on AVi to 5 percent.
The Administration's economic forecast, presented in connection with its mid-session update
of the budget outlook, does not differ greatly
from the projections of the FOMC members.
Nominal GNP is near the upper ends of the
central-tendency ranges of the FOMC for 1989
and 1990, but with a more favorable mix of real
output versus inflation, especially in 1990. There
appears to be no basic inconsistency between the
policy objectives of the Federal Reserve and the
529
economic forecast of the Administration; indeed,
the Administration has indicated that it shares
the view that the maintenance of anti-inflationary
monetary policy is a precondition for healthy
economic expansion.
In an environment of relatively slow overall
growth, such as is expected by the FOMC members, some industries and regions are likely to experience setbacks; but major imbalances that could
threaten the continuation of the economic expansion are not anticipated. In the household sector,
growth of consumer purchases has been sluggish
and may remain so for a while. Residential construction activity should pick up some in coming months,
in response to the recent decline of mortgage rates,
although an overhang of supply in some locales
could damp the recovery. Surveys of business plans
suggest that capital spending will post further gains
over the remainder of 1989, but some moderation
from first-half growth rates is to be expected in light
of declining levels of capacity use and the recent
weakening in corporate profits. Spending on equipment is likely to continue to be buoyed by the desire
to modernize industrial facilities so as to enhance
efficiency and meet intense competition here and
abroad.
The external sector represents an area of considerable uncertainty in the economic outlook for
the next year and a half. Real net exports of
goods and services increased earlier this year,
2. Economic projections for 1989 and 1990
FOMC voting members and
other FRB Presidents
Item and year
Range
Central tendency
Administration
1989
Percent change, fourth quarter to fourth quarter
Nominal GNP
Real GNP
Consumer price index
Average level in the fourth quarter, percent
Civilian unemployment rate
5to7y4
Iftto 2%
4ft to5%
6 to 7
2 to2V4
5 to 5
7.1
2.7
4.9 1
5 to 6
Around 5 ft
5.3 Z
AWtolft
1 to2V4
3 to 5%
5 Vi to 6*4
1ftto 2
4ft to 5
6.8
2.6
4.1'
5ft to 6
5.4 2
1990
Percent change, fourth quarter to fourth quarter
Nominal GNP
Real GNP
Consumer price index
Average level in the fourth quarter, percent
Civilian unemployment rate
5 to 6ft
1. CPI for Urban Wage Earners and Clerical Workers. FOMC forecasts are
for the CPI for All Urban Consumers.
2. Percent oftotal labor force, including armed forces residing in the United
States.
530
Federal Reserve Bulletin • August 1989
but improvements may be more difficult to
achieve in the period ahead as the effects of past
depreciation of the dollar wear off and are offset
by those associated with the more recent appreciation. In addition, the path of exports will
depend importantly on economic growth abroad,
which may slow as a result of policy actions
taken by some of our major trading partners to
offset mounting inflationary pressures. Ultimately, achievement of the adjustment needed in
the external sector will depend not only on
governmental policies that foster macroeconomic stability, but also on the determination of
U.S. firms to meet foreign competition through
application of stringent cost controls and intensified marketing efforts abroad.
A key ingredient in maintaining a healthy pace of
economic expansion is further progress in reducing
the federal budget deficit. Since 1983, the deficit has
fallen relative to GNP from more than 6 percent to
around 3 percent, but it remains large by historical
standards. Taking the actions required to meet the
Gramm-Rudman-Hollings targets on schedule will
foster confidence in the U.S. economy, particularly
among financial market participants. At the same
time, reduced demands by the federal government
for credit will free up the available supply to interestsensitive private sectors, such as housing and business investment. The Committee thus views as
highly encouraging the commitments expressed by
the Congress and the Administration to begin soon
to address the problems of meeting the fiscal 1991
budget target.
THE PERFORMANCE OF THE ECONOMY
DURING THE FIRST HALF OF 1989
After two years of rapid expansion, economic
activity decelerated substantially in the first half
of 1989. Even at this more moderate pace of
growth, however, job creation was considerable—nearly 1 Vi million between December and
June—and the civilian unemployment rate, fluctuating around 5VA percent, remained in the lowest range since the early 1970s.
Inflation rose in the first half of 1989, but most
of the increase appears to have resulted from
transitory events. In particular, energy prices
increased sharply, as the rise in crude oil prices
between November 1988 and May 1989 was
passed through, and food prices surged as the
agriculture sector continued to experience adverse supply developments. Outside food and
energy, the rate of inflation has, on average,
remained at about its 1988 pace, even in the face
of relatively high levels of resource utilization.
This apparent stability of underlying price trends
is attributable in part to the appreciation of the dollar
on exchange markets. So far in 1989, prices of
imported goods other than oil have been virtually
flat on average, restraining increases in the prices of
domestically produced items. In addition, despite
the tightest labor markets in some time, wage trends
have been fairly stable, helping to limit the acceleration in unit labor costs during a period in which
productivity has weakened.
The External Sector
Developments in foreign exchange markets have
played an important role in shaping events in the
domestic economy in recent years. After depreciating over most of the period from 1985 to late
1987, the foreign exchange value of the dollar in
terms of other Group of Ten (G-10) currencies
changed little, on net, in 1988, as a decline in the
final few months reversed much of the increase
that had occurred earlier in the year. In December the dollar began to rebound, and it rose
substantially through mid-June before dropping
back somewhat. The appreciation of the dollar
through the first half of 1989 was frequently met
by concerted intervention sales of dollars by
U.S. and foreign monetary authorities.
During December, and in the first quarter of this
year, the dollar rose in response to perceptions of a
relative tightening of U.S. monetary policy. Reports
of somewhat higher rates of inflation and news
about the strength of the economy contributed to
expectations that Federal Reserve policy would be
tightened still further. There was a brief pause in the
dollar's rise after the Group of Seven finance ministers and central bank governors stated in April that
a further rise in the dollar that undermined the
adjustment process would be counterproductive.
In May and early June, the dollar appreciated
significantly on balance, even though interest
rates on nondollar assets rose relative to those on
dollar-denominated instruments. Sentiment in favor of the dollar was, perhaps, partly a response
Monetary Policy Report to the Congress
to concerns about political events abroad, but the
data on the U.S. trade balance, which were
better than expected, also may have played a
role. For a while, the dollar's rise appeared to be
associated with expectations of capital gains on
U.S. stocks and bonds. Since mid-June, the
dollar has retraced much of its second-quarter
rise, under the influence of increasing interest
rates abroad, declines in dollar rates, and some
easing of demands for dollar assets after the
initial response to political uncertainties in certain other countries.
Measured in terms of a trade-weighted average
of the other G-10 currencies, the dollar is about 8
percent higher than it was in December 1988 and
about 12 percent higher than it was in December
1987. After adjustment for changes in relative
price levels, the appreciation of the dollar has
been larger because U.S. inflation has remained
above the average for the other G-10 countries.
Meanwhile, the currencies of South Korea and
Taiwan have risen moderately against the dollar
so far in 1989.
In most of the other industrial countries, economic growth has been strong. The resulting
very high rates of capacity utilization and the
diminishing slack in labor markets, together with
higher world oil prices and special factors, have
spurred an appreciable pickup in inflation abroad
in recent quarters. Policymakers in many foreign
industrial countries have responded by raising
official interest rates. Growth of the newly industrializing economies in Asia has slowed recently,
though the rates remain relatively high. In contrast, developing countries that are burdened
with large external debts have continued to struggle to achieve sustained economic growth.
The U.S. merchandise trade deficit in the first
quarter was $110 billion at a seasonally adjusted
annual rate, significantly better than the figure for
the fourth quarter and that for 1988 as a whole. In
the first two months of the second quarter, the
trade deficit was essentially unchanged from the
first-quarter pace.
Exports have continued to expand this year,
although not so rapidly as in 1988. Export gains
have been broadly based, with notable increases
for agricultural goods, industrial supplies, capital
goods, and consumer goods. Meanwhile, imports
have increased moderately; in fact, in April and
531
May imports of products other than petroleum
averaged less than 1 percent above their fourthquarter rate. Notable decreases were recorded in
imports of consumer goods and automotive products. So far in 1989, the value of oil imports has
risen sharply, as higher prices for petroleum and
petroleum products were accompanied by a
small increase in physical volume. The further
improvement in the U.S. trade balance in the first
five months of this year reflects several factors,
most importantly the strength of economic activity abroad, the slower growth of U.S. activity,
the continuing, if diminished, benefit for U.S.
price competitiveness from the depreciation of
the dollar through the end of 1987, and the
restraint that the recent rise in the dollar placed
on prices of non-oil imports.
The current account deficit widened in the first
quarter to $123 billion. The increase from the
fourth-quarter rate was more than accounted for
by capital losses on assets denominated in foreign currencies resulting from the dollar's appreciation. Setting aside those losses, the current
account balance in the first quarter showed a
deficit of $108 billion, an improvement of about
$22 billion from the previous quarter. Nearly all
of this improvement resulted from the narrowing
of the trade deficit. Preliminary information on
capital transactions in the early months of 1989
suggests an increase in net private foreign purchases of U.S. Treasury securities and corporate
bonds and substantial foreign direct investment
in the United States.
The improvement in real net exports accounted for nearly half of the overall rise in the
GNP during the first quarter, more than reversing
its negative contribution in the fourth quarter.
The contribution to GNP growth in the second
quarter probably was negligible, however, as real
net exports may have begun to be depressed by
the loss in U.S. price competitiveness associated
with the cumulative rise in the dollar since the
end of 1987.
The Household Sector
Much of the slowing in overall economic growth
in the first half of 1989 reflected a deceleration in
consumer spending. The slump in demand was
532
Federal Reserve Bulletin • August 1989
fairly broad, encompassing a variety of durable
and nondurable goods. Despite the widespread
availability of special financing deals and other
incentives, sales of motor vehicles in the first half
were about 6 percent below the pace of 1988 as a
whole. A weakening in purchases of furniture
and appliances likely was related in part to the
drop in home sales.
Consumption slowed against a backdrop of
strong income growth in the early part of the
year, although weaker income growth was evident in the spring. Personal income gains in the
first quarter were accentuated by the assumption
of the national income accountants that the income of farm proprietors would return to normal
levels over the year, after the drought-induced
reductions in 1988. With hiring down in the
spring, increases in wages and salaries softened
noticeably, showing virtually no growth in real
terms. Also, growth of the nonwage components
of personal income was weaker on balance in the
second quarter.
The personal saving rate has been on a distinct
upswing since reaching a forty-year low in mid1987. Several explanations have been propounded
for the recent rise, among them the lower level of
household net worth relative to income since the
stock market break of 1987, higher costs of consumer credit (especially in after-tax terms, because of the phase-down of interest deductibility),
and concerns about a potential softening of the
economy. Whatever the cause, households appear to have adopted a more cautious spending
stance, though it also should be noted that the
personal saving rate has remained below the
norms of the 1960s and 1970s.
Residential construction declined over the first
half in response to the rise in interest rates and to
earlier overbuilding in some markets. The more
recent drop in rates, which began in May, likely
will be reflected in some improvement in construction over the summer and fall. Total housing
starts, at an average annual rate of 1.44 million
units through May, were down 3V4 percent from
their 1988 pace.
Starts in the single-family sector averaged
about 1 million units at an annual rate between
March and May, a period relatively free from the
weather-related distortions that affected construction in January and February. Interest rates
on fixed-rate mortgages rose above 11 percent for
the first time since 1985, with part of the rise
attributable to investor concerns about sizable
future liquidations of mortgage assets by troubled thrift institutions. Also, rates on adjustablerate mortgages (ARMs) rose nearly a full percentage point during the early months of 1989, as
discounting of initial interest rates on ARMs was
reduced. In recent years, relatively low initial
terms on ARMs led an increasing number of
households to favor this instrument for home
purchases. Since their highs in the spring, interest rates on ARMs have fallen more than Vi of a
percentage point, while fixed-rate mortgage rates
have dropped about VA percentage points.
Meanwhile, multifamily starts fell further in the
first half of the year from the already low level
recorded in 1988. Multifamily housing production
has been limited by an overhang of vacant rental
units. Moreover, building in this sector continues
to reflect the effects of the Tax Reform Act of
1986, which, by curtailing many of the financial
advantages associated with investment in rental
housing, sharply reduced its after-tax profitability.
The Business Sector
In contrast to the household sector, business
capital spending strengthened in early 1989, responding in part to high levels of capacity utilization in the United States and to international
pressures to lower costs. In the first quarter of
1989, real business fixed investment rose at an
annual rate of IVi percent, and such spending
appears to have increased substantially further in
the second quarter.
The gain in investment has occurred in the
equipment category. Particularly noteworthy in
the first quarter was a sharp rise in outlays for
industrial machinery. Increases in that area,
which includes spending for fabricated metal
products, engines, turbines, and a variety of
other types of industrial apparatus, have been
exceptionally strong since mid-1987. Spending
for high-technology equipment also has been
robust. Computer outlays decelerated during the
second half of 1988, possibly reflecting some
hesitation on the part of potential purchasers in
response to the rapid pace of new product announcements; but spending was up considerably
Monetary Policy Report to the Congress
in the first quarter, and another gain appears in
train for the second quarter.
High levels of factory utilization apparently
have spurred a rise in industrial building in recent
quarters. Outlays for construction of office and
other commercial buildings also rose earlier this
year, although the level of total spending on
commercial structures remained below that of
the 1985-86 period, depressed by excess space in
many areas. And, while the rise in energy prices
led to some increase in oil and gas drilling in the
spring, the level of activity remained very low
compared with that of the early 1980s.
Inventory investment slowed over the first five
months of 1989, as businesses adjusted with apparent promptness to the more moderate expansion of final demand. Inventory buildups by manufacturers have been concentrated in the aircraft
and other capital goods industries, where production has risen and order backlogs are large. In
contrast, in the retail sector, automobile inventories rose sharply in the first quarter and have
remained high. In an effort to reduce the overhang
before introducing new models in the fall, carmakers have lowered factory assembly rates and have
enhanced sales incentives. Qualitative reports
have suggested that stocks at some other retailers
also may have risen above desired levels, although most firms appear to have been following
cautious inventory policies, and problems of excess stocks seem to be limited.
In the first quarter of 1989, before-tax economic profits of nonfinancial corporations declined, in part because unit labor costs increased
as sales growth slowed and productivity deteriorated. The drop in profits was spread over most
types of businesses; the largest decline was in the
manufacturing sector, which had especially
strong gains in both 1987 and 1988. Meanwhile,
corporate tax liabilities edged up in the first
quarter, owing in part to higher profits generated
from the rise in prices of inventories. The combination of lower operating profits and higher tax
liabilities reduced the internal cash flow of nonfinancial corporations.
The Government Sector
In the first quarter, real federal purchases of
goods and services, the part of federal outlays
533
that is counted directly in GNP, were virtually
unchanged. Such purchases are dominated by
defense; nominal spending authority in this area
has been virtually flat since 1985, and procurement of some major new weapon systems is
winding down. As a result, real military purchases have fallen and in the first quarter were
nearly 5 percent below the mid-1987 peak. The
decline in defense spending has been partially
offset by increases in other federal purchases.
Inventories held by the Commodity Credit Corporation edged down further in the first quarter,
but the rate of decline has been slowing (on a
seasonally adjusted basis) since the middle of last
year as the effects of last summer's drought have
dissipated. Spending for the space program and
for tax and immigration enforcement also has
risen.
On a unified budget basis, total nominal outlays for the fiscal year through May were more
than 6 percent above the comparable year-earlier
total. Spending related to the thrift institution
problem spiked at year-end 1988 and then
dropped sharply in the first half of this year. On
the other hand, growth has continued in entitlement spending (principally Medicare and Social
Security) and in net interest outlays.
Federal receipts have grown even more rapidly
than outlays, buoyed by increases in employment and income. In addition, there was an
extraordinary spurt in nonwithheld tax collections in April and May, the sources of which are
at this point uncertain. Some possible explanations relate to the Tax Reform Act of 1986 and
include greater-than-anticipated effects from its
base-broadening provisions and a shifting of income from earlier years into 1988, when the
reduction in personal tax rates was fully phased
in. In addition, realizations of taxable capital
gains may have been hefty last year because of
the large number of corporate mergers and leveraged buyouts. All told, receipts thus far in 1989
are 10 percent above year-earlier levels, and the
Administration now projects that the total budget
deficit for FY1989 will be $148 billion, compared
with the $155 billion recorded in FY 1988.
Real purchases of goods and services by state
and local governments have been on a moderate
uptrend this year. Outlays for personnel and
construction in the education and law enforce-
534
Federal Reserve Bulletin • August 1989
ment areas have been subject to considerable
upward pressure. Some other expenditures have
risen because of federal mandates, especially
those in recent health legislation. As in the
federal sector, growth of state and local outlays
has been tempered by budgetary pressures; excluding retirement trust funds, which are running
a large surplus, the sector had a deficit of about
$17 billion at an annual rate in the first quarter.
Revenue experience was favorable this spring,
however, as a significant number of states reported personal income tax receipts that were
larger than expected.
Labor Markets
Job growth was substantial over the first half of
1989, though it slowed in the spring. In the first
quarter, additions to nonfarm payrolls averaged
264,000 a month, about the same pace seen over
the previous two years. By spring, hiring had
begun to slow, and payroll employment growth
dropped back to 200,000 per month in the second
quarter as a whole. Even at this reduced rate,
however, job gains were larger than are likely to
be sustained, given the underlying trend in labor
force growth. Manufacturing employment declined in the second quarter, while the number of
construction jobs was about unchanged. Growth
of employment moderated in the serviceproducing sectors, where advances have been
the largest over the course of this business expansion.
The moderation in the growth of the demand
for labor in the second quarter did not lead to any
appreciable reduction in labor market tightness.
The unemployment rate has fluctuated between
5.0 and 5.4 percent thus far this year; in June it
stood at 5.3 percent. Although many Americans
remain involuntarily unemployed, the difficulty
of matching workers with jobs—given considerations of skill and location—is much greater than
it was earlier in the expansion.
By at least one aggregate measure, the rate of
increase in wages seems to have leveled off in
recent quarters. Average hourly earnings of production and nonsupervisory workers accelerated
from late 1986 through mid-1988; since then the
rate of increase has flattened out, and in June
earnings were up 33/4 percent from a year earlier.
The employment cost index for wages and salaries in the private nonfarm sector, a broader
measure of wages that is available only through
March, indicated some easing of wage trends in
the goods-producing sector; however, in the service-producing industries, the trend remained
sharply upward. The cost of benefits provided to
employees in the goods and services sectors rose
slightly faster than wages over the year ended in
March, and total compensation per hour—wages
and salaries plus benefits—was up AVi percent
over that period, in the same range as the 12month increases recorded in the preceding three
quarters.
Productivity performance has deteriorated
somewhat in recent quarters. In some instances,
higher levels of production have forced firms to
use less efficient capital and to employ less
skilled labor. Output per hour in the nonfarm
business sector was down in the first quarter, and
virtually unchanged on a four-quarter basis. With
the sizable increases in compensation over the
same period, unit labor costs accelerated to an
annual rate of 5XA percent, the largest yearover-year increase since late 1982. In manufacturing, the rise in unit labor costs in the year
ended in the first quarter was about 1 percent;
unit costs had declined earlier in the business
expansion. This step-up in unit labor costs reflects a slackening in the improvement of factory
productivity; compensation increases have remained moderate.
Price Developments
Inflation increased sharply in early 1989, reflecting higher costs for food and energy. The
consumer price index for all items, a broad-based
measure for finished goods and services, rose at
an annual rate of more than 6 percent through
May, compared with the pace of AVi percent in
1987 and 1988. The producer price index for
finished goods recorded an even more pronounced acceleration, owing to the greater importance of food and energy in that index.
However, the underlying inflation trend has not
deteriorated: Excluding food and energy, inflation at the retail level has been running at a rate
of around 43A percent, about the same as in
1988.
Monetary Policy Report to the Congress
Energy prices began rising sharply last November, after the OPEC nations agreed to limit
crude oil production. Subsequently, temporary
supply disruptions in Alaska and in the North
Sea added to price pressures. The posted price of
West Texas Intermediate, the U.S. benchmark
for crude oil, jumped from about $13 per barrel in
November to more than $19 in early May. As a
result, energy prices at the producer level
soared, and consumer energy prices rose nearly
25 percent at an annual rate between December
and May. More recently, posted prices of crude
oil have remained between $19 and $20 per
barrel.
Increases in retail food prices were large in the
first half of 1989, in part reflecting the lingering
effects of last summer's drought and additional
damage to some crops this year. From the beginning of the year through May, the rise in the
consumer price index for food was close to 8
percent at an annual rate. Although drought
curtailed the winter wheat crop for 1989, total
crop acreage has expanded, and overall production should rebound this year if weather conditions are satisfactory. In addition, meat supplies
seem likely to hold fairly steady over the second
half of this year. Thus, pressures from the supply
side should not be a big factor in the food price
outlook.
Excluding food and energy, prices for commodities at the consumer level have risen at a
rate slightly lower than that recorded for 1988. A
marked diminution of increases in non-oil import
prices associated with the appreciation of the
dollar apparently has restrained the prices of
many goods, notably apparel and a variety of
household items. In contrast, inflation in the
service sector has increased, especially in laborintensive services, such as medical care, entertainment, and public transportation.
At early stages of processing, prices of goods
have risen little or declined in recent months.
Prices for many crude industrial commodities,
which had climbed sharply in 1987 and 1988 with
the expansion of factory output, have softened
this year. This in turn has helped hold down the
increase in prices at the intermediate level of
production; the producer price index for intermediate materials, excluding foods and energy, was
unchanged on net in the second quarter.
MONETARY POLICY AND
FINANCIAL DEVELOPMENTS
THE FIRST HALF OF 1989
535
DURING
In conducting monetary policy over the first half
of the year, the Federal Open Market Committee
continued its effort to foster long-run price stability, so as to build a base for sustainable
expansion of the economy. In again reducing the
ranges for money and debt growth at its February
meeting, the Committee recognized that restraint
on the expansion of money and credit would be
needed to promote this goal.
At the same time, the Committee realized that
considerable uncertainty remained about the behavior of the monetary aggregates. Relatively
wide monetary ranges—4 percentage points in
breadth—were retained, in part to take account
of the substantial interest rate sensitivity of
money demand over horizons of as long as a year
and of the unpredictable effects on money demand of the resolution of the crisis in the thrift
industry. Moreover, in these circumstances, the
Committee recognized that, in addition to the
behavior of the monetary aggregates, a variety of
indicators of inflationary pressures and the
course of economic activity would have to be
taken into account in shaping policy over 1989.
The Implementation of Monetary Policy
As noted previously, developments early in 1989
suggested that a worrisome risk remained that
inflation was picking up and could become more
deeply embedded in the economy. Wage and
benefit costs had accelerated in 1988, and the
readings for the consumer and producer price
indexes were troubling. Extending the move
toward restraint that began almost a year earlier,
the Federal Reserve increased reserve market
pressures at the start of this year and again in
mid-February. On February 24 the discount rate
was raised Vi percentage point to 7 percent.
These policy actions were accompanied by
marked increases, of about a percentage point, in
most short-term interest rates. Yields on longterm securities also moved up, but by considerably less than short-term rates. The foreign exchange value of the dollar strengthened as
interest rates in the United States rose relative to
536
Federal Reserve Bulletin • August 1989
those abroad. Money growth slowed: Ml was
roughly flat in the first quarter, and M2 and M3
decelerated from already reduced rates in the
second half of 1988.
By spring, the outlook for spending and prices
had become more mixed. Employment growth
still looked strong; indicators of capital spending
suggested a rebound from the fourth quarter of
1988; and prices continued to advance rapidly.
But consumer demand appeared to have moderated; industrial production was weakening; and
the behavior of commodity prices and some
other indicators of potential price trends suggested that inflationary momentum might begin
to wane. In view of the uncertainties surrounding
the outlook and taking into account the subdued
pace of money growth, the Committee left reserve market conditions unchanged through the
middle of the second quarter.
Many interest rates began to move off their
March highs early in the second quarter as indications mounted of moderation in the pace of
economic activity and in underlying price pressures. With the passing weeks, a considerable
weakening in housing activity became evident,
and incoming data showed employment to be
expanding at a noticeably slower rate. Market
expectations of some additional tightening of
monetary policy shifted to anticipations of an
easing. The ensuing decline in interest rates did
not, however, prompt a drop in the foreign
exchange value of the dollar. Instead, the dollar
appreciated further over this period, in part because of political uncertainties abroad and in part
because of data on the U.S. trade balance that
were better than expected. The dollar also may
have gained support for a while from expectations that the rallies in U.S. securities markets
would continue. The monetary aggregates weakened further in April and early May, reflecting
the drawdown of liquid balances to make personal tax payments that were larger than expected. In May, M2 fell to the lower edge of the
parallel band associated with its annual target
range, and M3 slipped just below the bottom of
its growth cone.
The FOMC eased policy slightly at the beginning of June and again in early July. The federal
funds rate moved down about Vi percentage
point in two steps to around 9XA percent. Evi-
dence that the more moderate pace of economic
activity was persisting, indicators of the behavior
of wages and sensitive prices, and the weakness
of the monetary aggregates all were consistent
with a prospective ebbing of inflationary pressures. Moreover, the dollar was appreciably
above year-end levels, which could be expected
to have favorable effects in restraining inflation.
While inflation remained a concern, an intensification of price pressures did not appear to be a
present danger, and the risks of cumulating
weakness in the economy had increased.
Although the easing steps were largely expected, most short-term interest rates continued
downward in anticipation of further monetary
policy actions, more than offsetting their firstquarter rise. The bond market rallied further,
leaving long-term rates by mid-July down Vi to 1
percentage point on balance from late-1988 levels. Stock prices continued their brisk upward
movement, reaching post-October 1987 highs.
The value of the dollar also moved down somewhat in late June and dropped further in early
July; it retraced most of its rise during the second
quarter, although remaining well above its level
at year-end 1988.
The Behavior of the Monetary Aggregates
Growth of the monetary aggregates was quite
sluggish over the first half of 1989, reflecting the
effects of increases through March in market
interest rates relative to returns on monetary
assets, some depositor concern over the problems of the thrift industry, and large tax payments by individuals (table 3). From the fourth
quarter of 1988 through June, M2 edged up at an
annual rate of only 2 percent, markedly below
last year's pace of 5lA percent. M2 velocity rose
sharply through the second quarter.
The deceleration of M2 in the first quarter
stemmed largely from a combination of continued increases in market interest rates and unusually slow upward adjustment of rates paid on
retail deposits. Yields on NOW accounts moved
up only about 10 basis points over the year ended
in March, while those on other liquid deposits—
savings and money market deposit accounts
(MMDAs)—rose about lA and 1 percentage point
respectively; many short-term market rates in-
Monetary Policy Report to the Congress
537
3. Growth of money and debt
Percent
Period
Fourth quarter to fourth quarter
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
Quarterly growth rates (annual rates)
1989:1
2
Ml
M2
M3
Debt of domestic
nonfinancial sectors
7.7
7.4
5.2(2.5)'
8.7
10.2
5.3
12.0
15.6
6.4
4.3
8.2
9.0
9.3
9.1
12.1
7.7
8.9
9.3
4.2
5.2
10.4
9.6
12.3
9.9
9.8
10.5
7.7
9.1
5.7
6.2
12.3
9.6
10.0
9.0
11.3
14.2
13.2
13.4
9.8
8.9
1.9
1.3
3.7
3.1
-.4
-5.5
8.2
7.4 e
1. Ml figure in parentheses is adjusted for shifts to NOW accounts in 1981.
Estimated.
creased more than 3 percentage points over the
same period. Rates on small time accounts increased much more than those on the more liquid
retail deposits, but they too failed to keep up with
the rise in market yields.
Some of the sluggishness in the adjustment of
returns on retail deposits over this period may
have reflected continued regulatory pressures on
thrift institutions to moderate their pricing of
deposits, as well as the closing last year of some
insolvent institutions with aggressive pricing policies. More broadly, the slow upward adjustment
of deposit rates, especially on accounts without
fixed terms—NOW accounts, MMDAs, and savings deposits—also reflected the continued evolution of pricing strategies by depository institutions in the deregulated environment. By
concentrating upward rate adjustments in small
time deposits and offering more sophisticated
account structures, in which larger balances receive higher rates, institutions found that they
could retain the bulk of their funds while minimizing the effects of higher market rates on their
overall interest expense.
Nonetheless, as yields on market instruments
became increasingly attractive relative to those
on deposits over the first quarter, some funds
were redirected to instruments not included in
the monetary aggregates. Noncompetitive tenders for Treasury bills and notes, a rough
indicator of the extent to which individual investors are increasing their holdings of Treasury securities, surged early in the year and
remained strong through March. The increase
in demand for Treasury securities was greater
than would have been expected from interest
rate movements alone, suggesting that depositors' nervousness about the problems of the
thrift industry were playing a role too. Although
the President submitted to the Congress a comprehensive plan for resolving the industry's
difficulties early in the year and gave assurances
that the U.S. government would back insured
deposits fully, thrift institutions insured by the
Federal Savings and Loan Insurance Corporation (FSLIC) experienced large outflows of
deposits throughout the first quarter. These
outflows apparently depressed overall M2
growth somewhat during that period, but the
bulk of the funds likely remained within the
aggregate. Commercial banks experienced relatively strong growth in core deposits, and
M2-type money market mutual funds, whose
rates adjust relatively quickly to changes in
market interest rates, saw sizable inflows of
funds.
The increased opportunity costs of the first
part of the year continued to damp money growth
into the second quarter, but, in addition, liquid
balances were drawn down to meet large April
tax payments. Nonwithheld personal tax payments were $16 billion greater this April than
last. The tax-related effect was manifested in a
sharp drop in the liquid components of M2 in late
April and into May as the payments continued to
clear. Transaction accounts posted large de-
538
Federal Reserve Bulletin • August 1989
clines, outflows of savings and MMDA balances
accelerated, and inflows to money market mutual
funds paused. Balances began to bounce back in
late May, however, as depositors started to rebuild their holdings of monetary assets; and in
June, M2 grew at an annual rate of 63/4 percent.
Also contributing to the rebound in holdings of
money balances after mid-May were declines in
opportunity costs as market interest rates headed
down. Yields on small time deposits lagged this
move, and returns on these deposits at times
exceeded those on market instruments. Demand
for Treasury securities through noncompetitive
tenders fell back, and growth in small time deposits, already robust, jumped to an annual rate
of more than 20 percent for the quarter. Yields on
small time deposits at thrift institutions responded somewhat more slowly than those at
banks to the downturn in market interest rates,
and growth of these deposits at thrift institutions
surged. Largely because of this strength in small
time accounts and because the most anxious
depositors probably had already moved their
funds elsewhere, overall deposit balances at
FSLIC-insured thrift institutions stabilized in
the second quarter.
M3 grew at an annual rate of 31/2 percent from
the fourth quarter of last year to June, placing it at
the lower bound of its target range. In the first
quarter, expansion of M3 was subject to offsetting
forces. It was bolstered somewhat by bank funding needs generated by strong demand for business loans. Added demand for commercial and
industrial loans stemmed both from merger-related financings and from shifts to short-term
borrowing by businesses facing rising long-term
interest rates and investor concerns about "event
risk"—the possibility that a firm's debt obligations would be significantly downgraded in a corporate buyout or restructuring. Acting to damp
M3 growth over the first quarter, however, was
heavy reliance by thrift institutions on Federal
Home Loan Bank advances and other borrowings, which are not included in the money stock.
M3 growth edged down a bit in the second quarter
with some easing of bank credit demands and
strong growth in government deposits—also not
included in the money stock—resulting from the
large volume of tax payments. By June, however,
M3 had rebounded as tax effects unwound.
Reflecting interest rate and tax-related effects,
Ml declined at an annual rate of 3V2 percent from
the fourth quarter of 1988 to June. Balances in
other checkable deposits, which had moved
down a little over the first quarter in response to
higher opportunity costs, dropped substantially
in late April and early May as the tax payments
cleared. Demand deposits also declined on balance over the first half of the year, because
opportunity costs increased and because the balances businesses are required to hold to compensate their banks for services fell. After changes in
market rates of interest, banks often adjust with
a lag the "earnings credit" rates used to determine the level of required compensating balances; thus, downward adjustments to compensating balances can continue for some time after
market rates have stopped rising. The large personal tax payments also affected household demand-deposit balances. Late in the quarter, however, both demand and other checkable deposits
began to increase, perhaps as some of the earlier
influences started to be reversed with the drop in
market interest rates over the second quarter.
Credit Flows
The aggregate debt of domestic nonfinancial sectors expanded at an annual rate of close to 8
percent over the first half of this year, near the
midpoint of its monitoring range and down somewhat from its 1988 pace. The growth of federal
sector debt slowed as tax receipts surged. Expansion of the debt of nonfederal sectors also
moderated, partly in response to higher levels of
market interest rates over much of the first half of
the year. Household borrowing in mortgage markets slowed as increases in lending rates damped
housing demand, while the pace of consumer
borrowing slackened along with the deceleration
in consumption spending.
Mortgage lending by thrift institutions did not
appear to be unusually weak in the first few
months of 1989, given the prevailing interest
rates. These institutions coped with weak deposit
flows by running off cash and investments and,
through the first quarter, stepping up borrowing
from the Federal Home Loan Banks. Despite
signs of a reduction in mortgage lending activity
by these institutions in the second quarter, the
Monetary Policy Report to the Congress
overall availability of housing credit did not
appear to be significantly impaired.
Spreads between rates on both fixed-rate
mortgages and mortgage-backed securities and
rates on Treasury instruments of comparable
maturity did widen over the first six months of
the year, with some market participants reportedly fearing that large-scale liquidations of
mortgage-backed securities by troubled thrift
institutions could adversely affect the market
for those instruments. However, the widening
also may have reflected other developments: a
general increase in uncertainty about movements in long-term interest rates (and therefore
about prospective prepayments), and the flattening of the yield curve, which discouraged
issuance of derivative mortgage instruments
and thus reduced demand for the underlying
mortgage-backed securities.
Total borrowing by nonfinancial businesses in
the first half of the year was close to its 1988
pace. Credit demands continued to be buoyed by
sizable merger-related financing in the first quarter, and an apparent pickup in capital expenditures increased business borrowing in the second
quarter even as credit demands related to mergers and restructurings, while still strong, eased a
bit. Because of investor fear of event risk trig-
539
gered by the RJR-Nabisco acquisition in late
1988 as well as higher long-term rates through
much of the period, corporate borrowing was
concentrated in short-maturity vehicles. Commercial paper issuance surged during the first
half of the year; businesses also relied on bank
loans, albeit to a lesser extent. In response to
investor concerns about event risk, many firms
issued bonds with relatively short maturities of
one to five years, or they brought issues to
market with straight puts or with so-called poison
puts—covenants designed to protect against negative effects on bondholders from future restructurings. Toward the end of the second quarter,
with the introduction of these protections and the
decline in rates, long-term financing in the corporate bond market was on the upswing.
Net issuance of tax-exempt securities by state
and local governments fell sharply over most of the
first half of 1989. Investor demand for tax-exempt
securities remained strong and, with diminished
supply, the ratio of tax-exempt to taxable yields fell
to its lowest level since 1984. This ratio rose somewhat late in the second quarter, when the decline in
long-term interest rates began to bring forth an
increase in refunding activity and a pickup of issuance of bonds to raise new capital.
540
Priced Services, 1988 and 1989
Members of the staff of the Board's Division of
Federal Reserve Bank Operations prepared this
article.
Since 1981, under the mandate of the Monetary
Control Act of 1980, the Federal Reserve has
been charging fees for the services it provides to
depository institutions—fees that must, over the
long run, cover the full costs of those services. In
1988, the Federal Reserve System received
$801.7 million in fees for its priced services and
incurred $796.6 million in costs, for a recovery
rate of 100.6 percent. The 1987 rate was 104.6
percent. Given the 1989 fees for priced services
announced in November 1988 and expected
growth in the total provision of services, the 1989
recovery rate will be approximately 103 percent.
Activity is generally expected to maintain its
recent patterns of growth, with higher volumes
for all services except those involving paperbased securities, for which a decline is expected.
After adjustments to receipts and costs,
which are described in the notes to the tables,
total 1988 revenue from Federal Reserve priced
services was $667.7 million, $18.0 million above
1987 revenue (table 1). Production costs rose
$46.1 million in 1988 to $552.9 million. The
resulting $114.8 million in income from operations was reduced $69.9 million by imputed
costs and increased $11.0 million by the net of
other income and expenses; thus income before
imputed income taxes was $55.9 million. Aftertax income for 1988 was $37.9 million, down
from $62.9 million from 1987. Each of the
Federal Reserve's major service lines had before-tax income that at least covered operating
and imputed costs.
In 1988, the System also continued to pursue
its longer-term efforts to design electronic payment systems. It implemented special programs
to improve processing of payments, especially
new procedures to expedite the return of
checks. It sought to bolster the efficiency and
security of those systems and its ability to cope
with interim outages and to restore services
after disasters.
The following sections examine the activity for
each priced service. Appendix table A.l presents
the pro forma balance sheet for all priced services in 1987 and 1988, and table A.2 presents
activity for certain services in each Federal Reserve District.
CHECK COLLECTION
SERVICE
In 1988, the Federal Reserve System processed
17.6 billion checks, 3.6 percent more than in 1987
(table 2). The service brought in $513.8 million
and cost $436.6 million. After adjustment for
imputed costs, and for the net of other income
and expenses, the service netted $24.9 million
before taxes (table 3).
In September 1988, the Board implemented
new Federal Reserve services designed to speed
Reserve Bank processing of returned checks.
These services help banks comply with the rules
on check return set out in Regulation CC. Fees
for the new check-return services and revised
fees for forward check collection were effective
at the same time. The Federal Reserve priced its
new return services explicitly and began to levy
the fees on the paying bank. Forward-collection
fees were reduced 11 percent on average because
the returned-check processing cost in those fees
was eliminated.
To expedite the return process, the Reserve
Banks now send returned checks directly to the
depositary bank (that is, the bank of first deposit), bypassing intermediary endorsers. Under
the new procedures, the Reserve Banks process
local returned checks at night, dispatching them
with the forward-collection checks the next
morning. The first Federal Reserve office to
receive nonlocal returned checks "qualifies"
the checks (that is, prepares them for high-
541
1. Pro forma income statement for Federal Reserve priced services, calendar years 1987 and 19881
Millions of dollars
Item
1987
1988
Income from services provided to depository institutions2
667.7
649.7
Production expenses 3
552.9
506.8
Income from operations
114.8
142.9
4
Imputed costs
Interest on float
Interest on debt
Sales taxes
FDIC insurance
43.4
16.2
8.4
1.8
Income from operations after imputed costs
Other income and expenses5
Investment income
Earnings credits
Income before income taxes
Imputed income taxes
6
Net income
69.9
27.4
16.1
7.4
1.8
52.7
90.2
44.9
134.0
123.0
11.0
119.1
114.1
5.0
55.9
95.2
18.1
32.3
37.9
62.9
32.7
29.3
MEMO
Targeted return on equity 6
1. The income statement reflects income and expenses for priced services.
Included in these amounts are the imputed costs of float, imputed financing
costs, and the income related to clearing balances.
Details may not add to totals because of rounding.
2. Income represents charges to depository institutions for priced services.
This income is realized through one of two methods: direct charges to an
institution's account or charges against accumulated earnings credits.
3. Production expenses include direct, indirect, and other general
administrative expenses of the Federal Reserve Banks for providing priced
services. Also included are the expenses of staff members of the Board of
Governors working directly on the development of priced services, which
were $1.7 million in both 1988 and 1987. The credit to expenses resulting from
implementation of FASB 87 is reflected in production expenses (see table A. 1,
note 3).
4. Imputed float costs represent the value of float to be recovered, either
explicitly or through per-item fees, during the period. Float costs include
those for checks, book-entry securities, noncash collection, ACH, and wire
transfers.
The following table depicts the daily average recovery offloatby the Federal
Reserve Banks for 1988. In the table, unrecovered float includes that generated
by services to government agencies or by other central bank services.
Float recovered through income on clearing balances represents increased
investable clearing balances as a result of reducing imputed reserve
requirements through the use of a deduction for float for cash items in process
of collection when calculating the reserve requirement. This income then
reduces the float required to be recovered through other means.
As-of adjustments and direct charges refer to midweek closing float and
interterritory check float, which may be recovered from depositing institutions
through adjustments to the institution's reserve or clearing balance or by
valuing the float at the federal funds rate and billing the institution directly.
speed processing) and dispatches them to other
Federal Reserve offices the next night. Federal
Reserve offices also accept returned checks that
have been qualified by the paying bank or prior
returning bank and dispatch them as quickly as
forward-collection checks.
Float recovered through per-item fees is valued at the federal funds rate and
has been added to the cost base subject to recovery in 1988.
Total
float
Unrecovered
float
Float subject to recovery
Sources of recovery of float
Income on clearing balances
As-of adjustments
Direct charges
Per-item fees
931.2
55.8
875.4
105.4
325.3
121.2
323.6
Also included in imputed costs is the interest on debt assumed necessary to
finance priced service assets and the sales taxes and FDIC insurance assessment
that the Federal Reserve would have paid had it been a private-sector firm.
These imputed costs are among the components of the PSAF (see table A . l ,
note 4).
5. Other income and expenses consist of income on clearing balances and
the cost of earnings credits granted to depository institutions on their clearing
balances. Income on clearing balances represents the average couponequivalent yield on three-month Treasury bills applied to the total clearing
balance maintained, adjusted for the effect of reserve requirements on clearing
balances. Expenses for earnings credits are derived by applying the average
federal funds rate to the required portion of the clearing balances, adjusted for
the net effect of reserve requirements on clearing balances.
6. Imputed income taxes are calculated at the effective tax rate derived from
the PSAF model (see table A . l , note 4). The targeted return on equity
represents the after-tax rate of return on equity that the Federal Reserve would
have earned had it been a private business firm, based on the bank holding
company model. These items are among the components of the PSAF (see
table A . l , note 4).
Revised fees for the Federal Reserve's returned-check services were approved by the
Board on March 16, 1989, and became effective
May 1, 1989. The Board increased the fees for
returned checks in response to the decline in
the cost-recovery rate of the service after the
542
Federal Reserve Bulletin • August 1989
2. Activity in Federal Reserve priced services, calendar years 1987 and 19881
Thousands of items, except as noted
1988
1987
Percent change
56,334
602,406
17,617,744
2,236
138
3,337
341
53,278
475,114
17,007,924
2,061
163
3,803
357
5.7
26.8
3.6
8.5
-15.6
-12.2
-4.6
Service
Fund transfers
Commercial ACH
Commercial checks
Securities transfers
Definitive safekeeping
Noncash collection
Cash transportation
originated on-line; definitive safekeeping, average number of issues or
receipts maintained; noncash collection, number of items on which fees are
assessed; and cash transportation, number of armored-carrier stops.
1. Activity is defined as follows: wire transfer of funds, the number of basic
transactions originated; ACH, total number of commercial items processed;
commercial checks, total number of commercial checks collected, including
both processed and fine-sort items; securities, number of basic transfers
3. Pro forma income statement for Federal Reserve priced services, by service, 19881
Millions of dollars
Item
Total
Commercial
check
collection
Income from services
667.7
513.8
Operating expenses
552.9
436.6
Income from operations
Wire
transfer
and net
settlement
Commercial
ACH
Definitive
safekeeping
and
noncash
collection
Bookentry
securities
Cash
services
69.6
42.7
17.9
8.7
14.9
61.2
36.2
15.8
H
14.1
I:O
-
114.8
77.2
8.4
6.6
2.1
Imputed costs
69.9
62.4
3.1
2.7
.9
Income from operations
after imputed costs
44.9
14.7
5.4
3.9
1.2
Other income and
expenses, net 3
11.0
10.2
.3
.3
.1
Income before income
taxes
55.9
24.9
5.7
4.2
1.3
.8
.1
.3
.7
#
.1
.3
.8
1. The income statement by service reflects revenue, operating expenses,
and imputed costs except for income taxes. The effect of implementing FASB
87 (see table A. 1, note 3) is reported only in the "total" column in this table and
has not been allocated to individual priced services. Taxes and the aftertax
targeted rate of return on equity, as shown on the pro forma income statement
(table 1), have not been allocated among services because these elements relate
to the organization as a whole.
Details may not sum to totals because of rounding.
2. Imputed costs include float, interest on debt, sales taxes, and the FDIC
assessment. Float costs are based on the actual float incurred in each priced
service. Other imputed costs are allocated among priced services according to
the ratio of operating costs less shipping costs in each service to the total costs
of all services less the total shipping costs of all services.
3. Other income and expenses consist of income on clearing balances and
the cost of earnings credits for the Federal Reserve. Because clearing balances
relate directly to the Federal Reserve's offering of priced services, the income
and cost associated with these balances are allocated to each service based on
the ratio of income from each service to total income.
•Less than $50,000 in absolute value.
implementation of the returned-check services
on September 1988. The recovery rates declined primarily because revenue was lower and
costs were higher than expected as a result of
the poor quality of qualified returned-check
deposits. The Reserve Banks are working with
depository institutions to improve the overall
quality of returned-check deposits. Federal
Reserve initiatives to strengthen return operations include improving the quality of carrier
envelopes and of endorsements, and reducing
the number of misdirected qualified returned
checks and the " r e j e c t " rate of qualified
deposits.
The number of returned checks has increased
approximately 25 percent since the implementation of the new returned-check services. The
growth of total returned-check deposits is expected to change little in 1989; qualified deposits are expected to increase, while raw deposits
shrink.
In May 1988, the Board authorized the Reserve Banks to process notices of nonpayment to
the depositary bank on behalf of the paying bank
Priced Services, 1988 and 1989
for returned checks of $2,500 or more, to conform to Regulation CC's expanded requirement
for notice of nonpayment, which was to become
effective September 1, 1988.
Also in May, the Board approved making
permanent two services that had been the subject
of pilot programs: check truncation (in which the
bank holds the check and transmits payment
information electronically) and the electronic
capture of check data encoded for magnetic ink
character recognition (MICR). Under the expanded MICR-capture service, Reserve Banks
deliver payment information electronically or on
magnetic tape, provide a re turned-check and
retrieval service, and deliver the checks to the
paying bank several days later. Nine Reserve
Bank offices provided truncation services in
1988. So far, the Reserve Banks have offered a
truncation service only locally and only to paying
banks that request it. Eventually, the Reserve
Banks will offer a national service by truncating
eligible checks at the first Reserve Bank to
receive the check.
The Federal Reserve is developing a standard
for machine-readable endorsements to improve
their quality and further expedite the processing
of returned checks. On the grounds of simplicity,
cost, and compatibility with existing and future
check-processing equipment and technology, a
bar code appears to be the most promising type
of machine-readable endorsement. Depending on
the outcome of research, the Board may publish
for public comment modifications to Regulation
CC to incorporate such an endorsement. If it is
ultimately adopted, depository institutions will
be given adequate time to implement the new
standard.
The Federal Reserve's digitized-image project, initiated in 1987, continues to progress
successfully, and testing should be completed
by 1990. By storing checks electronically rather
than on microfilm, the technique has the potential to support significant efficiencies and improvements in check and return-item processing. The System is investigating the use of
digitized-image processing for both high- and
low-speed processing of returned checks and of
government checks because the technique may
be more efficient and provide better quality than
does the current practice of microfilming.
ELECTRONIC PAYMENTS
543
SERVICES
The Federal Reserve System continued to work
on the design of electronic payment systems
during 1988. As part of this effort, the System
completed a market study that focused on the
business requirements for the 1990s, investigating service offerings, operating hours, reliability,
security, and formats. Also, an award was made
to IBM in early 1989 to test the application of
fault-tolerant (that is, highly reliable) minicomputer technology to the automated clearinghouse
(ACH) service. If the test proves successful, the
technology will be evaluated in terms of its
Systemwide application to the ACH service as
well as to other electronic payment services.
The Reserve Banks also began improving the
reliability of automated systems for processing
electronic payments during 1988, an effort that is
expected to continue in 1989 and 1990. The aim is
to streamline processing systems, automate operations, and incorporate new technology to permit faster recovery from service interruptions.
As one result, the total duration of Fedwire
outages in 1988 was half that in 1987.
The Federal Reserve worked on several new
ways to restore services after disasters. A test of
whether one Reserve Bank could provide processing backup to another demonstrated the
technical feasibility of such an approach; but it
also revealed the need for operational changes
before the approach can be used. In November,
the Board approved the establishment of a contingency backup site at the Los Angeles Branch
for the electronic payment and accounting operations of the Federal Reserve Bank of San Francisco. The Federal Reserve Bank of New York,
which has a dedicated contingency backup facility, completed several simulations of disaster
recovery during the year. Other Reserve Banks
continued to test and improve their methods of
restoring electronic payment operations at the
shared contingency site at Culpeper, Virginia.
The System made substantial progress in promoting electronic access for Federal Reserve
services. First, it developed and tested a standard software system for intelligent terminals,
known as Fedline II, to give depository institutions access to Federal Reserve services. The
Reserve Banks began deploying Fedline II in the
544
Federal Reserve Bulletin • August 1989
fourth quarter of 1988, with the objective of
converting all intelligent connections using Federal Reserve software to Fedline II software by
year-end 1991. Second, by year-end 1988, conversion to standard protocols and encryption had
been completed for almost all electronic connections between Reserve Banks and depository
institutions for funds transfers via low-volume
terminals and for one-third of the high-volume
connections.
Funds Transfer Service
The Federal Reserve processed 56 million transfers of funds in 1988, 5.7 percent more than in
1987. While the number grew more slowly than
before, the value of funds transfers increased
almost 13 percent to $161 trillion, compared with
a rate of 12 percent in 1987.
The basic fee for funds transfers was increased
from 47 cents to 50 cents effective January 1989.
The volume of transfer services is expected to
increase 4 percent in 1989, more slowly than in
1988, in part because mergers and consolidation
of depository institutions' operations have meant
a reduction in the number of transfers. The
System anticipates that costs will increase in the
next year or two as Reserve Banks take further
action to improve both the reliability of these
services and disaster-recovery capabilities.
These actions, coupled with slower growth in
volume, may occasion higher fees.
Until April 1989, the Reserve Banks accepted
unstructured third-party transfers, but originating institutions paid a 25 cent surcharge for each
transfer that did not conform to the structured
format. On April 3, 1989, the structured format
became mandatory.
Automated Clearinghouse Service
In 1988, the Federal Reserve processed more
than 1 billion ACH items, an increase of about 17
percent from 1987 (table 2). Commercial ACH
transactions accounted for approximately threefifths of the total, or 602 million items, an increase of almost 27 percent from 1987.
To reduce credit risk in the ACH system, in
December 1987 the Board approved a requirement, effective July 18,1988, that debit returns of
$2,500 or more be deposited at the Reserve
Banks for processing by the nighttime deposit
deadlines. This practice should accelerate the
delivery of large-dollar returns by several days.
To enable institutions that do not have electronic
access to the Reserve Banks to comply with this
requirement, the Reserve Banks began permitting the return of large-dollar debit transactions
by telephone. The proportion of return items and
notifications of change that is processed electronically again expanded in 1988.
New accounting procedures for credit transactions that settle on holidays or on other days when
depository institutions are closed were also implemented on July 18, 1988. The procedures require
that institutions originating credit transactions that
settle on those days be charged as though they were
open. This measure reduces risk significantly and
recognizes that originating institutions can anticipate their settlement obligations.
In another measure to reduce credit risk in the
ACH service, the Board authorized the Reserve
Banks to obtain prefunding for credit transactions if they are concerned that an originating
institution may become insolvent before the
transactions are settled. The Reserve Banks can
withhold some or all of the credit associated with
debit transactions originated by such an institution, in anticipation of return items. This treatment parallels that for checks processed by the
Federal Reserve.
In November 1988, the Board approved new
ACH fees, which became effective in January
1989. Surcharges on ACH nighttime processing
were reduced from 2 cents to 1.5 cents for
next-day credit transactions, and from 4.5 cents
to 3.5 cents for debit transactions. The System
plans to simplify the ACH fee schedule still
more. ACH nighttime surcharges may be reduced further, and the difference between local
and interregional transaction fees, currently set
at 1.0 cent and 1.7 cents respectively, may be
narrowed. The System also plans to simplify
further the fee schedule for the manual aspects of
ACH processing, such as tape handling, output
delivery, and conversion to electronic form of
paper or telephonic returns and notifications of
change.
The Reserve Banks will continue to encourage
depository institutions to electronically origi-
Priced Services, 1988 and 1989
nate, receive, and return ACH transactions
with the Reserve Banks. Toward this end,
Fedline II will be offered to depository institutions that use intelligent terminals to access
Federal Reserve services. The System is also
exploring other low-cost electronic alternatives
for institutions receiving small volumes of ACH
transactions.
BOOK-ENTRY
SECURITIES
SERVICE
In 1988, the Federal Reserve processed 7.9 million on-line transfers of Treasury book-entry
securities, 8.5 percent more than in 1987. Transfers of federal agencies' book-entry securities
totaled 2.2 million, compared with 2.1 million in
1987. The numbers are projected to increase
more than 10 percent in 1989. Fees charged to
depository institutions for book-entry security
transfers remain in 1989 at $2.25 for on-line
transfers and $7.00 for off-line transfers. However, a fee was imposed on receivers of reversals
because they are the parties that originate the
transfer that prompts the reversal.
In 1989, the System will redesign the bookentry securities system. This effort is a response
to the rapid growth in the number of book-entry
securities eligible for the system in the last few
years and to other business needs, such as the
545
Federal Reserve's program for reduction of risk
in the payment system.
Definitive Safekeeping and Noncash
Collection Services
During 1988, the number of definitive safekeeping issues averaged approximately 137,700 a
month, 15 percent fewer than in 1987 (table 2).
The number of noncash collection items decreased 12.2 percent to 3.3 million. Bearer and
coupon municipal securities have not been issued
since the 1983 revisions in the tax law, and
volumes are projected to decline steadily in the
1990s. Responding to the 1988 decline, the Reserve Banks have emphasized cost-control measures.
Six Federal Reserve Districts raised their
prices in 1989 to offset declining volumes in
both definitive safekeeping and noncash processing, and two other Districts raised prices on
noncash processing to offset anticipated declines in volumes. Full cost recovery for the
combined service is planned for 1989. To
achieve this objective, adjustments to operations and cost-control measures will be pursued, with further consolidation of the service
where possible.
546
F e d e r a l R e s e r v e Bulletin • August 1989
A. 1. Pro forma balance sheet for priced services, December 31,1987 and 19881
Millions of dollars
Item
1988
1987
1
Short-term assets
Imputed reserve requirements on clearing balances . . .
Investment in marketable securities
Receivables
Materials and supplies
Prepaid expenses
Net items in process of collection (float)
Total short-term assets
Long-term assets3
Premises
Furniture and equipment
Leases and leasehold improvements
Prepaid pension costs
Total long-term assets
222.0
1,628.0
57.7
6.4
10.9
967.0
2,892.0
271.8
126.1
6.1
37.4
Total assets
Short-term liabilities
Clearing balances and balances arising from early
credit of uncollected items
Short-term debt
Total short-term liabilities
Long-term liabilities
Obligations under capital leases
Long-term debt
Total long-term liabilities
2,575.5
224.5
110.9
3.0
18.7
441.4
357.1
3,333.4
2,932.7
2,817.0
75.0
2,505.7
69.9
2,892.0
1.2
128.1
Total liabilities
Equity
Total liabilities and equity 4
1. Details may not sum to totals because of rounding.
2. The imputed reserve requirement on clearing balances and investment in
marketable securities reflect the Federal Reserve's treatment of clearing
balances maintained on deposit with Reserve Banks by depository institutions.
For presentation of the balance sheet and the income statement, clearing
balances are reported in a manner comparable to the way correspondent banks
report compensating balances held with them by respondent institutions. That
is, respondent balances held with a correspondent are subject to a reserve
requirement established by the Federal Reserve. This reserve requirement
must be satisfied with either vault cash or with nonearning balances maintained
at a Reserve Bank. Following this model, clearing balances maintained with
Reserve Banks for priced service purposes are subjected to imputed reserve
requirements. Therefore, a portion of the clearing balances held with the Federal Reserve is classified on the asset side of the balance sheet as required
reserves and is reflected in a manner similar to vault cash and due from bank
balances normally shown on a correspondent bank's balance sheet. The
remainder of clearing balances is assumed to be available for investment. For
these purposes, the Federal Reserve assumes that all such balances are
invested in three-month Treasury bills.
Receivables represent (1) amounts due the Reserve Banks for priced services that have been provided to institutions for which payment has not yet
been received and (2) that share of suspense-account and difference-account
balances related to priced services.
The amount shown for materials and supplies represents the inventory value
of such short-term assets necessary for the ongoing operations of priced
service areas. Prepaid expenses represent items such as salary advances and
travel advances for priced service personnel.
The account "Net items in the process of collection" represents the amount of
float as of the balance-sheet date and is the difference between the value of
items in the process of collection—including checks, coupons, securities, wire
transfers, and automated clearinghouse (ACH) transactions-and the value of
deferred-availability items. The cost base for providing services that must be
recovered under the Monetary Control Act includes the cost of float
incurred by the Federal Reserve during the period, valued at the federal funds
219.6
1,610.4
58.3
4.9
6.7
675.7
2,575.5
1.2
107.2
129.3
108.4
3,021.3
2,684.0
312.1
248.7
3,333.4
2,932.7
rate Conventional accounting procedures would call for the gross amount of
items in the process of collection and deferred availability items to be included
on a balance sheet. However, the gross amounts have no implications for
income or actual or imputed costs, and inclusion of the gross amounts could
lead to misinterpretations of the assets employed in the provision of priced services that must be financed. Therefore, only the net amount is shown. The net
amount represents the assets that involve a financing cost.
3. Long-term assets on the balance sheet have been allocated to priced services with the direct determination method, which uses the Federal Reserve's
Planning and Control System to ascertain directly the value of assets used
solely in priced services operations and to apportion the value of jointly used
assets between priced services and nonpriced services. Also, long-term assets
include an estimate of the assets of the Board of Governors directly involved in
the development of priced services.
Long-term assets include amounts for capital leases and leasehold
improvements and for prepaid pension costs associated with priced services.
Effective January 1,1987, the Federal Reserve Banks implemented Financial
Accounting Standards Board Statement No. 87, Employers' Accounting for
Pensions. Accordingly, the Reserve Banks recognized a credit to expenses of
$18.7 million and a corresponding increase in this long-term asset account in
1988.
4. A matched-book capital structure has been used for those assets that are
not "self-financing" in determining liability and equity amounts. Short-term
assets are financed with short-term debt. Long-term assets are financed with
long-term debt and equity in a proportion equal to the ratio of long-term debt to
equity for the bank holding companies used in the model for the private sector
adjustment factor (PSAF). The PSAF model uses the 25 largest bank holding
companies as a basis to impute the taxes that would have been paid and the
return on capital that would have been provided had Federal Reserve priced
services been furnished by a private-sector firm.
Other short-term liabilities include clearing balances maintained at Reserve
Banks and deposit balances arising from float. Other long-term liabilities
consist of obligations on capital leases.
Priced
A.2.
Services,
1988 and 1989
547
Revenue and expenses of locally priced Federal Reserve services, by District, 19881
Millions of dollars
District
Total
revenue
Operating
cost
Float
cost
Total
cost
Net
revenue
Commercial check collection
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
36.6
66.4
24.7
30.1
48.2
59.3
71.3
22.8
29.4
32.6
37.7
54.6
31.6
59.6
18.7
25.4
38.7
53.3
56.8
19.4
24.9
29.1
30.5
44.5
4.4
6.9
1.1
1.7
2.9
.6
4.2
2.3
.4
1.5
2.6
5.6
36.0
66.4
19.8
27.0
41.6
53.9
61.0
21.7
25.3
30.6
33.1
50.1
4.8
3.0
6.6
5.4
10.2
1.1
4.1
2.0
4.6
4.5
System total
513.8
435.3
34.2
469.6
44.2
*
.6
Definitive safekeeping and noncash collection
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
.8
2.9
1.3
2.1
.9
2.6
2.7
1.2
.9
1.5
1.3
.7
2.5
1.2
1.8
.9
2.4
2.0
1.1
1.0
1.3
1.0
System total
17.9
15.8
*
*
• I
.7
2.4
1.2
1.9
.9
2.3
2.0
1.1
.9
1.3
1.0
*
•
.3
.6
.1
-.1
.2
.2
*
15.8
2.2
*
*
.1
liliifi iiiisi sisB:
i * ••
•
*
•
*
.1
.4
.1
.2
•
Cash services
Boston
New York
Philadelphia
Cleveland
Richmond
Adanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
System total
*
.7
1.6
1.9
.1
*
*
1.5
1.8
.1
*
*
*
*
*
.5
.3
2.8
.5
.4
.3
2.5
.5
*
*
*
.2
.3
*
6.5
6.3
.2
14.9
14.1
.8
1. This table gives the financial results for each Reserve Bank in providing
locally priced services. Expenses related to research and development projects
are reported at the System level; the sum of expenses for the twelve Districts
may not, therefore, equal the System total. The financial results for each
Reserve Bank shown here do not include the dollars to be recovered through
the PSAF and the net income on clearing balances. Therefore, to reconcile net
.7
*
revenue by priced service shown in this table with that shown in table 3,
adjustments must be made for imputed interest on debt, sales taxes, FDIC
assessment, Board expenses for priced services, and net income on clearing
balances.
Details may not sum to totals because of rounding,
*Less than $50,000 in absolute value.
548
Industrial Production
Released for publication June 15
Industrial production was unchanged in May
after having increased a revised 0.6 percent in
April. In May, further gains occurred in business
equipment, excluding motor vehicles, and in
materials. However, production of construction
supplies declined for the fourth successive
month, and output of both cars and trucks
dropped back to about their March levels. At
141.4 percent of the 1977 average, the total index
in May was 3.9 percent higher than it was a year
earlier. Manufacturing output edged down in
May; capacity utilization in manufacturing declined 0.3 point to 84.0 percent. Detailed data for
capacity utilization are shown separately in "Ca-
Ratio scale, 1977=100
Final Products
Motor Vehicles and Parts
Defense and
space
150
200
135
120
180
Business
equipment
160
/-v-.^..
140
90
Consumer goods
120
75
100
80
60
1983
1985
1987
All series are seasonally adjusted. Latest series: May.
1989
1983
1985
1987
1989
549
1977 = 100
Percentage change from preceding month
1989
1989
Group
Apr.
May
Jan.
Feb.
Mar.
Apr.
May
Percentage
change,
May 1988
to May
1989
Major market groups
Total industrial production
141.4
141.4
.3
-.2
.1
.6
.0
3.9
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment...
Defense and space
Intermediate products...
Construction supplies.
Materials
151.1
149.7
139.1
131.8
141.8
167.4
178.6
155.9
138.5
128.3
150.8
149.4
138.5
130.8
141.3
167.8
178.0
155.7
137.4
128.5
.5
.3
.2
-.4
.4
.8
-.3
1.0
.6
-.1
.0
.3
.2
.1
.2
.7
-.4
-.9
-1.9
-.5
.2
.1
-.3
-1.1
-.1
.8
-.6
.5
-.4
-.1
.5
.6
.6
1.3
.3
.7
.2
.0
-.3
.8
-.2
-.2
-.4
-.8
-.3
.2
-.3
-.1
-.8
.2
4.0
4.2
4.3
4.1
4.4
6.9
-4.0
3.5
-1.0
3.7
.6
.7
.6
1.0
.0
-.1
-.1
.0
1.2
-.5
4.1
3.4
5.1
1.4
4.3
Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities
147.7
146.6
149.3
102.9
116.9
147.6
146.4
149.3
104.1
116.4
.6
.3
.9
-1.8
-1.3
-.2
-.2
-.3
-2.1
2.2
-.1
-.2
.2
1.0
.4
NOTE. Indexes are seasonally adjusted.
pacity Utilization," Federal Reserve monthly
statistical release G.3.
In market groups, production of consumer
goods decreased in May as auto assemblies fell to
an annual rate of 7.1 million units, from 7.4
million units in April; output of light trucks for
consumer use also declined. Production of other
consumer goods edged down as output of consumer energy, particularly gasoline and distillate
fuel oil, fell sharply; the remaining sectors, on
Total industrial production—Revisions
Estimates as shown last month and current estimates
Index (1977=100)
Month
Feb
Mar
Apr
May
Percentage change
from previous
months
Previous
Current
Previous
Current
140.4
140.5
141.1
140.5
140.6
141.4
141.4
-.3
.0
.4
-.2
.1
.6
.0
balance, were little changed. Output of business
equipment excluding motor vehicles rose 0.5
percent in May, the same rate of growth as in
April. Manufacturing and commercial equipment, as well as output of commercial aircraft,
continued to post gains. Production of materials
rose 0.2 percent in May after having risen sharply
in April. Energy materials advanced again in
May as extraction of crude oil increased. Nondurables rose again last month, reflecting further
gains in chemicals and textiles. Durable materials
were unchanged; a decline in parts for consumer
durables, mainly motor vehicles, was offset by
small gains in equipment parts and basic metals.
In industry groups, within manufacturing,
transportation equipment, refined petroleum
products, and lumber declined significantly. In
contrast, instruments, nonelectrical machinery,
and chemicals posted gains. Outside manufacturing, production in mining rose, but output at
utilities declined.
550
Statements to Congress
Statement by Martha R. Seger, Member, Board of
Governors of the Federal Reserve System, before
the Subcommittee on Consumer and Regulatory
Affairs of the Committee on Banking, Housing, and
Urban Affairs, U.S. Senate, June 7, 1989.
Thank you for the opportunity to provide the
views of the Board of Governors of the Federal
Reserve System on legislation relating to the
Community Reinvestment Act (CRA), the Government Check Cashing Act of 1989, and the
Basic Banking Services Access Act of 1989.
The CRA revisions in S. 909 would require that
the numerical ratings and a written assessment of
an institution's CRA performance be made available to the public. In addition, S. 906 would
require depository institutions to cash government checks at cost for noncustomers provided
that such persons have registered with the institution. S. 907 adds the requirement that depository institutions offer, for minimal fees, "basic
financial services accounts" that have low minimum balance requirements and that they permit
at least ten withdrawals per month.
COMMUNITY REINVESTMENT
ACT
To preface our discussion of the legislation pertaining to the CRA, I would like to underscore
our belief that the purpose of the CRA can best
be accomplished in an arena that is, as much as
possible, open to public view and input. Recent
actions by the Board in concert with other regulators have echoed a theme that seems to be at
the heart of the proposals before you today—that
people who are well informed about the activities
of their local financial institutions are better
equipped to participate effectively in the CRA
process. We are also committed to widening the
channels of communication among banks, their
communities, and regulators, but we believe this
should be done without making the regulatory
mechanisms and procedures for the CRA more
complicated, costly, or apt to impose delays on
those institutions with good records of performance.
I will begin by describing briefly the threefaceted program that we have established to
carry out our mandate in enforcing the CRA.
First, the Federal Reserve's specialized consumer compliance examiners conduct examinations of CRA performance about every 18
months for most state member banks, and more
often for those with identified weaknesses in
their record. The examination takes a comprehensive look at the bank's activities to address
credit needs in its market, including those of lowand moderate-income areas, as well as the kinds
of relationships it is forging with specific segments of the community. Second, through the
community affairs office at each of the Reserve
Banks, we provide information about community
development strategies and techniques to banks,
bank holding companies, and others. One of our
primary goals is to become familiar with the
credit needs within the Federal Reserve Districts, and then help banks construct programs
that respond to those needs. Third, we consider
the CRA record of banks in connection with
applications received under the Bank Holding
Company and Bank Merger Acts; CRA performance is taken into account along with legal,
financial, managerial, and competitive factors.
Our commitment to enhancing the role the
public plays in the CRA process has been a
long-standing one. For more than 10 years, we
have endeavored to ensure that CRA examinations are not conducted in a regulatory vacuum—
Federal Reserve examiners routinely interview
business people, government officials, and housing and other community group leaders in the
bank's community to learn about the local economic environment and the perceptions these
individuals hold of their local financial institutions. We require institutions to keep a file of
551
letters commenting on their CRA performance
from members of the community; examiners
review those letters, as well as the institutions'
responses to them. Careful attention is also given
to public comments on CRA performance, or
protests, received in connection with an application. Yet our experience with the CRA leads us
to believe that more can be done to open up the
process—and that is precisely the direction in
which we are moving.
In March of this year the Board, together with
the Comptroller of the Currency, the Federal
Deposit Insurance Corporation, and the Federal
Home Loan Bank Board, adopted a CRA Policy
Statement to provide guidance to institutions and
to community groups and to clarify a number of
issues that have arisen in enforcing the CRA. For
example, institutions are now required by regulation to prepare, annually update, and make
available for public review a CRA statement
listing the loan products they are willing to
extend. The new Policy Statement urges each
institution to significantly expand its statement to
paint a picture of the institution's overall approach to CRA, describing strategies for marketing and advertising, credit needs assessment and
new product development, past accomplishments, and future plans. Naturally, the size,
resources, and location of an institution will
influence the CRA statement's degree of detail
and its scope. While an expanded statement
laying out the details of its CRA efforts may be
extremely useful to a large bank in a major city,
it may simply not be necessary for a small bank
in a rural setting to go into similar detail.
A major thrust of the policy statement is to
shift the "CRA spotlight" away from the applications process—with the pressures imposed by
our timetable guidelines for completing the process—and to build stronger, enduring mechanisms for outreach and service by institutions to
their communities. We think that the expanded
CRA statement is an ideal vehicle for doing that
by focusing the attention of an institution's management, and of the public at large, on the
institution's record on an ongoing basis, and on
any areas needing improvement. At the same
time, we have strongly encouraged community
organizations to take advantage of the expanded
CRA statements as a starting point for discus-
sion, bringing their concerns to the attention of
an institution's management—to the greatest
possible extent—in the framework of a continuing dialogue, rather than in a protest situation.
A second important policy direction emphasized in the new policy statement should be
borne in mind in considering proposed legislation. That is, that institutions desiring to expand
their operations should have appropriate CRA
policies in place, and working well, before filing
an application. That means that while commitments by applicants for future actions may be
used to address specific problems in an otherwise
satisfactory record, making commitments to improve in the future should not be seen by applicants as a way to compensate for a seriously
deficient past record of performance.
This approach was demonstrated earlier this
year in the Board's denial of an application by
Continental Illinois Bancorp, Inc., of Chicago,
Illinois, to acquire an Arizona bank. In its order,
the Board described, and took a positive view of,
a plan developed by Continental to correct shortcomings in its CRA performance, which was in
the initial stages of implementation. Yet the prior
record failed to demonstrate, in the words of the
Board's order, " a basic level of compliance on
which the commitments can be evaluated." The
Board's handling of the Continental case should
not be interpreted as evidence of any lessened
willingness to work with institutions directly, or
through their primary regulators, to improve
their record. While there were reasons for the
Board's denial besides CRA factors, the case
does give a clear signal that, with respect to the
CRA, institutions should "put their houses in
order" before considering expansion. It also
highlights the importance of an established
record of performance under the CRA.
S. 909
In light of these developments, let me now turn
our attention to S. 909, which would amend the
Community Reinvestment Act to require the
regulatory agencies to prepare written evaluations of institutions' performance under the act,
and to make those evaluations public. We support the concept at the core of Senator Metzen-
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Federal Reserve Bulletin • August 1989
baum's proposal; in fact, you may recall that
Governor Johnson endorsed the idea of regularly
publishing an assessment of each institution's
CRA record by our examiners in testimony before this committee last September.
But one point is especially worthy of emphasis
with regard to the nature of the written evaluations for public release that we support. Though
the public evaluations we support would summarize the examiner's conclusions, together with
supporting information related to the CRA assessment factors, these evaluations would not be
the same as the examination reports themselves.
Neither would they divulge material contained in
the examination report that is important for supervisory purposes, but must be treated confidentially—such as information about the financial condition of the institution and any sensitive
information about its employees, customers, or
members of the community. We believe that the
relevant provisions of S. 909 should be written to
recognize the distinction between the examination report that is given to the bank and the
summary assessment that we believe can usefully be made public.
The objective of that proposal was to tell
people at the community level in a concise,
straightforward, and timely way how well their
local institutions are doing under the CRA. Doing
so should facilitate exactly what we are endeavoring to do through the Policy Statement just
described—promote the early start of a constructive dialogue about CRA achievements and
goals. Those concerned about affordable housing, minority businesses, inner city reinvestment, and many other areas will benefit from
knowing how these factors have been weighed in
assessing the record, and what areas for improvement have been identified.
We do, however, have serious concerns about
two aspects of the proposal. First, the written evaluations of each institution's performance would be
required to emphasize three specific types of credit—loans for low- and moderate-income housing,
small businesses, and small farms. We believe that
this requirement is inconsistent with the intent of the
act itself, which does not impose any specific lending requirements. Rather, institutions have a responsibility to help meet local credit needs, using
their own expertise and resources.
Because needs vary widely from community to
community, we would be remiss in rigidly focusing on these three credit categories in making our
evaluations. CRA examiners aim to take a broad
picture, instead of a snapshot, of all activities by
an institution that foster community revitalization—principally direct loans of all kinds, but
also, for instance, participation in the secondary
market, purchase of state or municipal bonds,
and investment in or technical assistance to
community development projects. Examiners do
look at the amounts and distribution of credit
extended for housing, small businesses, and
small farms, not with the intent of making a
quantitative analysis of an institution's lending,
but to gain a full, balanced view of its service to
the community.
Secondly, the bill would mandate public disclosure of the numeric ratings assigned during
examinations. Historically, CRA ratings, like
commercial examination ratings, have been
treated with strict confidentiality, as required by
procedures adhered to by all regulators. The
ratings were designed as a kind of supervisory
shorthand to help us monitor those institutions
needing closer attention; the numeric rating is in
no way a self-explanatory indicator of performance. Moreover, a rating assigned at a particular date in the past can be misleading, given that
CRA performance should be seen as a process
developing over time, rather than a static state of
affairs. At the very least, release of the rating
number would divert attention from the substance of examination findings. Of even greater
concern is the potential for the undermining of
public confidence in the safety of deposits in an
institution if an adverse CRA rating were to be
misunderstood as a reflection on the institution's
financial soundness. Much more can be achieved
by making public only the narrative evaluation,
as suggested by Governor Johnson last September.
CRA AMENDMENT
TO H.R.
176
Your letter asked that we address other CRA
changes proposed in an amendment to H.R. 176
late last year. This proposal comprises a broad
spectrum of measures pertaining to CRA exami-
Statements to Congress
nations, assessment factors for CRA performance, and the treatment of CRA issues in the
applications process. Here again, we believe that
the aspect of the proposal dealing with a public
CRA assessment has merit. Our overriding concern, however, is that many of its provisions
unnecessarily encumber existing administrative
procedures for CRA enforcement.
First, the bill requires in Section 804(b) that the
agencies give public notice before commencing
CRA examinations. Presumably this would be
done through newspaper advertisements, since it
must be given "in a manner reasonably designed
to reach members of the community served by
the institution under examination"—although
the use of lobby notices in the institution, or
publications currently disseminated by each Reserve Bank that list pending applications might
also be envisioned.
To gauge the implications of this proposal,
Reserve Banks surveyed local newspapers to
estimate the costs involved in running the 26,500
notices that we estimate would be required every
two years for the examinations by all the federal
regulators, assuming every institution is examined at least every two years. The total bill would
be about $1.24 million biannually, taking into
account price differences in urban and rural
areas. Time involved in identifying suitable
newspapers and making publication arrangements could add considerably to the price tag.
As stated in the proposed statutory language,
the reason for the provision is to allow any
person to submit comments on an institution's
record in connection with CRA examinations.
Actually, this has long been our practice. In the
Federal Financial Institutions Examination
Council's A Citizen's Guide to CRA, for example, community members are encouraged to discuss their concerns with the institution's regulatory authority, particularly through the public
file, the maintenance of which is one of the
CRA's statutory requirements. As indicated in
the Guide, persons who request to speak to a
Federal Reserve examiner in letters to the public
file will be contacted during the next scheduled
examination.
In reality, we go far beyond this provision,
since we welcome comments about any institution's performance at any time, not just in con
553
nection with examinations, and we take them very
seriously. We also seek out public input each time
we conduct a CRA examination through the
community contact interviews I mentioned earlier. In 1988, Federal Reserve examiners alone
interviewed some 925 consumer advocacy
groups, housing coalitions, local business and
trade associations, as well as local government
officials, and factored their comments into their
assessments of CRA performance. Given the
totality of these efforts, we do not believe this
additional expense for soliciting public comments in the examination process is necessary.
The bill's Section 804(e) calls upon the agencies to prepare and make public their assessments of each institution's performance under
the CRA. This concept has our support, for the
reasons already discussed in connection with
Senator Metzenbaum's proposal. There is, however, a need to clarify that the assessment would
be separate and distinct from the examination
report and the numeric rating.
Provisions of the bill's Section 805 regarding
the consideration of CRA performance in the
application process are troubling to us. We note
that it would require the agencies to rely on the
"most recent assessment of such record" in
considering an applicant institution's performance. Experience has shown us that the most
recent assessment may not always be the only, or
most reliable, indicator of current performance,
especially when the examination report is outdated, or when an institution has undergone a
major internal change, such as turnover in management. In such instances, the flexibility to look
beyond the latest examination report for upto-date information accurately reflecting present
performance is essential.
Section 805(e) sets out timing requirements for
agencies to complete their assessments of CRA
records in the framework of applications that we
think are unnecessary and unwise. You may be
aware that under Regulation Y, the Board has
imposed on itself a 60-day guideline for processing applications. The vast majority of domestic bank and bank holding company applications
are processed well within the 60-day goal; in both
1987 and 1988, the average processing time for
more than 4,000 domestic cases, including those
with CRA issues, was 39 days.
554
Federal Reserve Bulletin • August 1989
Under the Board's Rules of Procedure, the
presence of a CRA protest or an adverse assessment by any agency makes the case a matter for
Board attention—though it may be returned to
the Reserve Bank after Board staff review. It also
can make the process more complex, requiring a
thorough, and frequently time-consuming, analysis of the issues. In many instances, it is necessary for us to seek out additional information
from the applicant, or its primary regulator, to
fully address these issues. This is why we are not
always able to meet the 60-day target, although
delays have generally not been inordinate; in
1987, average processing time for the 37 CRAprotested cases was 73 days and in 1988, for 32
cases, it was 87 days.
At the outset, we would question whether
imposing statutory timeframes on applications
processing would achieve the desired end. They
would seem to hamper, rather than help, our
efforts to give appropriate attention to convenience and needs considerations in applications,
especially when an applicant's performance has
been marginal, or when the applicant is not
readily able to provide detailed information
about its record.
Apart from our general concern about these
requirements of the bill, other aspects of the
bill's timing provisions are unclear. CRA is only
one of many issues considered as part of these
applications. The Board also considers legal,
financial, managerial, and competitive issues, as
well. The draft seems to speak only of those
cases in which CRA issues are brought forward
through a protest. In fact, CRA issues may also
be uncovered by Federal Reserve Bank or Board
review, when any of the banks that are parties to
an application have been assigned adverse CRA
examination ratings by any of the agencies' examiners. In addition, the draft appears to require
that the CRA assessment in an application be
completed by a certain time in the application
process, whether or not the analysis of any other
issues the case might raise have been completed
and the overall case is ready for final decision.
Let me mention briefly our policy regarding
extensions of the comment period since misperceptions about our policy may have sparked
interest in the statutory timeframes. We believe
that it is incumbent on persons desiring to com-
ment on an applicant's CRA record to do so
within a 30-day period; otherwise, we may be
unable to give their comments the attention they
deserve, and still carry out our responsibility to
process applications in a timely manner. In a
very few circumstances we do find that an extension of the comment period is warranted—when
the application has not been promptly made
available for inspection by the parties, for example, or in the rare event when there has been
inadequate public notice of the application. But
we do not think it is appropriate to extend the
comment period—and possibly delay the Board's
decision on the case—simply because the commenter wants more time to pursue negotiations
with an institution under the pressure of a pending application. The agencies' recent Policy
Statement stresses this point.
In summary, the amendment to H.R. 176, in
our view, poses a number of problems. Most
importantly, it would make more rigid and cumbersome procedures, which for the most part are
already in place for enforcing the CRA, without
presenting any really new approaches to make
the process work better. We stand ready to
answer any questions you may have, and to
continue working with the committee in this key
policy area.
CHECK CASHING AND BASIC
BANKING
Let me turn now to the government check cashing and basic banking bills that are under consideration. These bills result from concerns that are
similar to those that motivate the Community
Reinvestment Act. Not only are some people
questioning whether banks are meeting the credit
needs of their communities, but others have also
raised concerns that low- and moderate-income
persons may not have ready access to banking
services. In particular, the focus has been on the
need to cash government checks and to have an
account for making a limited number of payments to third parties.
The Board is quite familiar with these concerns. Since 1977, we have sponsored four surveys that determined, among other things, the
number of families that do not have depository
accounts. While the General Accounting Office
Statements to Congress
(GAO) has reported a higher number, our research suggests that the overall percentage of
families without accounts has remained fairly
constant at about 8 to 12 percent between 1977
and 1986. This research has also indicated that
roughly 30 percent of the families whose income
falls in the lowest quintile do not hold accounts.
Although the percentages for this latter group
have fluctuated, the numbers were more or less
the same in 1986 as in 1977. Thus, while many
low-income families do not have accounts, the
fact that the percentage has remained relatively
constant suggests that the increase in fees and
minimum balance requirements in recent years
has not caused a significant decline in account
holding. There are probably more fundamental
reasons for much of the lack of account ownership. For example, the convenience of check
cashing alternatives, the fact that these families
may have few bills to pay, and the difficulties in
managing an account with limited resources may
explain, to a large degree, why some low-income
families do not have an account relationship.
Also, it may be that some people simply do not
trust banks and prefer not to deal with them.
Nevertheless, we share the belief that banking
services should be widely available to all. Several years earlier, the Board adopted a Joint
Policy Statement on Basic Financial Services
with the other federal financial regulatory agencies and with the state financial institution regulatory associations. The Policy Statement encouraged financial institutions to recognize the
need of consumers for a safe and accessible place
to keep money, the need to obtain cash (including cashing government checks), and the need to
make payments to third parties. The Policy
Statement encouraged institutions to continue to
develop account products that are responsive to
these needs.
In the Policy Statement, the Board supported a
voluntary rather than a mandated approach so
that institutions could have flexibility in developing account products that meet the particular
needs of their customers. That remains our preference, and we oppose legislation to require
institutions to offer specific banking services.
First, it is not clear that these services are so
widely unavailable at present that legislation is
warranted. Over the past several years, a number
555
of surveys have been conducted to assess the
availability of basic banking and check cashing
services. While results vary, there is evidence
that a widespread problem does not exist. For
example, in its recent report to the Congress on
government check cashing, the GAO reported
that, as of 1985, 86 percent of banks and 55
percent of thrift institutions cashed U.S. Treasury checks for noncustomers. The American
Bankers Association reports that more than half
of all banks, and more than 70 percent of large
banks, offer basic banking accounts and that the
number of institutions offering such accounts has
increased dramatically over the years. Following
a survey of virtually all financial institutions in
New York State, the New York State Banking
Department found that low-cost banking services
are widely available and that the vast majority of
low- and moderate-income persons have ready
access to such accounts. In a 1987 report, the
GAO found that 74 percent of financial institutions provide low-cost accounts to senior citizens.
These surveys suggest that check cashing services are often available to noncustomers who
choose to use them and that a substantial and
increasing number of financial institutions voluntarily offer basic banking accounts. Consequently, the Board does not believe that enough
of a problem has been demonstrated to justify
sweeping legislation.
The Board has several other concerns with this
legislation. First, as a general matter, we question whether it is wise for the government to
mandate the services that financial institutions
must provide. This is particularly so when the
legislation involves setting the fees for such
services. If there are problems in the way government funds are delivered to recipients, then it
seems that the government should itself assume
more responsibility for addressing the difficulty.
For example, it might be useful to explore the
possibility of using federal post offices to provide
check cashing services to holders of government
checks since they offer other financial services
such as money orders. Electronic delivery of
government benefits is another avenue that could
be vigorously pursued. Successful electronic
benefits delivery systems are currently operating, including programs in New York City and
556
Federal Reserve Bulletin • August 1989
St. Paul, Minnesota. The advantages of these
systems—for beneficiaries, government agencies, and financial institutions—are numerous.
They include eliminating problems with delayed,
lost, or stolen checks, providing quicker resolution of problems concerning payments, and lowering costs to all parties.
A more specific concern involves the mechanism for setting fees for the services. The bills
require the Board to study financial institutions'
"actual" costs and to set the fees permitted to be
charged for these services to recover these costs.
Besides the many difficulties of trying to determine such costs, any fees set by the Board would
almost certainly be an average and, as such,
could never reflect the actual differences among
institutions. As a result of a federally established
fee, some institutions would fail to recover their
costs, while other institutions could exceed them
under the national fee standard. Finally, it appears inequitable that financial institutions would
be required to offer these services at cost while
other entities, such as check cashers, could continue to offer them at a profit.
The Board is also concerned that financial
institutions would increasingly fall victim to
fraud if check cashing legislation is enacted.
Checks can easily be stolen, and identification
cards can easily be forged. Giving the Board the
authority to suspend the check cashing requirement for certain classes of checks, as the bill
does, is small comfort. It would take a relatively
long period of time for the Board to learn of any
patterns of fraud and, by then, significant losses
may already have been suffered. Also, while
fraud levels may now be low for U.S. government checks, this may not continue to be the
case after legislation. Institutions can now keep
fraud losses low by establishing procedures,
based on their own experiences, that are adequate to address their own risks. Mandatory
standards may eliminate their ability to continue
using methods that have been successful for
them and may leave them far more vulnerable.
The Joint Policy Statement I mentioned had
the benefit of putting the federal government
behind providing basic services, while leaving
the implementation to the creativity of individual
institutions. Conversely, a single federally mandated banking service may stifle innovation and
experimentation. Several different account products have evolved as a result of voluntary efforts
by financial institutions. Some, for example, involve savings accounts with money orders used
for third-party payments. Others, based on a
"pay-as-you-go" idea, have fees for each check,
rather than the monthly maintenance fee contemplated by the legislation. Either of these could be
better and more economical for the person who
writes fewer than ten checks a month. The basic
banking bill will likely result in the standardization of accounts, and it runs the risk of thwarting
the continued development of different services,
such as these, to address varying and changing
needs of low-income and elderly individuals.
Institutions may have much less incentive to
offer additional, and potentially cheaper, basic
banking accounts once they offer the standard
service required by law.
Other innovative arrangements are being investigated that would eliminate many of the problems
with delivering government benefits by paper
checks. The Board strongly supports the facilitation of electronic alternatives for the delivery of
government payments (known as "electronic benefits transfer" or EBT). These arrangements are
probably a better long-term solution to the problems that motivate the check-cashing legislation.
Since the Board testified on similar legislation
last fall, interest in electronic benefits transfer
has increased. Several meetings have been held
among representatives of government agencies,
financial institutions, and consumer groups to
discuss the feasibility of such arrangements. In
addition, several programs are now operating
and others are about to be initiated. The Board
agrees with the GAO's conclusion that electronic
delivery provides several advantages over a
paper-based government benefits system. Consequently, we are very encouraged about the increased momentum in EBT activity over the last
several months. We urge the Congress to foster
these efforts, rather than imposing burdensome
new requirements on financial institutions.
Finally, in our experience, well-intentioned legislation and regulations, particularly as they pyramid on one another, can cumulatively be overwhelming—especially for small institutions. This
bears particular note when it is not clear that a
compelling need for the legislation has been dem-
Statements
to Congress
557
onstrated. The Board believes that voluntary efforts by financial institutions will continue to be
successful in meeting many of the concerns that
have been expressed without the burden and cost
that rules and regulations inevitably impose. Al-
ternatives such as EBT, in particular, merit future
exploration. For all the foregoing reasons, the
Board opposes the basic banking and checkcashing bills now being considered by the Senate.
Statement by Alan Greenspan, Chairman, Board
of Governors of the Federal Reserve System,
before the Subcommittee on Securities of the
Committee on Banking, Housing, and Urban
Affairs, U.S. Senate, June 14, 1989.
invitation that seem to be most relevant to the
Federal Reserve's concerns.
•
RECENT
I am pleased to appear today to discuss the
internationalization of securities markets. This
subcommittee is to be commended for holding
timely hearings on this important matter. Our
markets and financial system are evolving at a
brisk clip, in ways that were not fully envisioned
only a few short years earlier.
These developments hold a good deal of promise for the diversity of financial markets and
instruments available to our investors. At the
same time, they are enhancing the avenues of
credit available to borrowers and the convenience and efficiency of financial services. However, these changes also are adding immensely to
the complexity of our financial system and accordingly are posing new risks. With the memory
of October 1987 still fresh in our minds, it is
important that we stand back and review this
process—not only to take stock of what has
happened but to understand better the economic
causes of the globalization of securities markets
and to identify potential accompanying risks and
ways to limit such risks. We also must be mindful
that our domestic financial institutions have
much to contribute to this process—and the
considerable economic benefits that it produces—
and we must seek to ensure that their competitive
position is not inappropriately hindered.
In my remarks today, I would like to put trends
in developments in global securities markets in
some perspective and to draw implications for
financial risks. I shall touch on the efforts under
way to coordinate policies internationally and the
question of legislation. In this way, I hope to
address those issues suggested in your letter of
TRENDS
International transactions in securities have
soared from levels earlier in this decade. This is
true both of foreign purchases and sales of U.S.
securities and, to a somewhat lesser degree, U.S.
transactions in foreign securities. Transactions
volume has been most dramatic in foreign purchases and sales of U.S. Treasury notes and
bonds, which surpassed $3 trillion on a gross
basis last year—from $100 billion to $200 billion
earlier in the decade. Foreign purchases and
sales of U.S. corporate stocks and bonds also
have been running dramatically above levels
earlier in the decade, although they are off from
peak levels of a couple years earlier.
Similarly, U.S. residents have become much
more active transactors in foreign bonds and
stocks. Purchases and sales of foreign bonds by
U.S. residents exceeded $400 billion, gross, last
year—up about tenfold from the beginning of the
decade. Meanwhile, U.S. transactions in foreign
stocks recently have climbed into the $200 billion
annual area on a gross basis—after some retrenchment in the wake of the October 1987
collapse—which also is up about tenfold from the
early part of this decade.
Clearly, this surge in cross-border financial
transactions has accompanied a large advance in
cross-border trade of goods and services. In the
1980s, growth of world output devoted to trade
has continued to surpass growth of total output,
although by a smaller margin than in the 1970s.
Thus, the share of output going to trade has
continued to rise. For the United States, the
import share of our final purchases has moved
higher in the 1980s, but there has been no dis-
558
Federal Reserve Bulletin • August 1989
cernible improvement in the export share of our
output during this period of large external deficits.
In financial markets, securities and open market paper have tended to play a more important
role in the financing of such international transactions in recent years, and net securities purchases have represented the largest source of
capital inflow into the United States to finance
our large external deficits. Investors have become more familiar with foreign securities issuers through the greater availability of foreign
products in local markets and through better
information on foreign issuers made possible by
vast improvements in information, aided by the
revolution in electronic information processing
and telecommunications. Moreover, the expansion of securities firms and banks into foreign
markets, including their research function, adds
to the information available to home-country investors about foreign investment opportunities.
At the same time, issuers, seeking to minimize
their funding costs, have increasingly over time
tested external capital markets, most visibly the
Euromarket. Furthermore, the growing sophistication of currency and interest rate swap markets
has enhanced this process by enabling borrowers
to issue instruments in fixed or floating form in
the currency most desired by investors and to
swap into the currency or form preferred by the
borrower.
An increasing array of securities—most notably government bonds and corporate stocks—is
being traded in secondary markets outside the
traditional market of the issuer. Many of these
securities are being traded at some point on the
globe virtually around the clock, alongside foreign exchange, and this has been a factor behind
the surge in transactions volume already noted.
In many cases, financial futures and options
contracts can be traded during these same hours,
which facilitates a shifting of risk and an enhancement of market liquidity.
UNDERLYING ECONOMIC FORCES
Behind these trends in international trade and
securities transactions is a process that I have
described elsewhere as the "downsizing of economic output." The creation of economic value
has shifted increasingly toward conceptual and
intangible values with decidedly less reliance on
physical volumes. A half century earlier, for
example, our radios and calculators were bulky.
Today, owing to modern electronics, they are
tiny and light and capable of performing more
functions. Thin fiber optics are replacing vast
tonnages of copper and with higher fidelity in
transmission. Financial transactions historically
buttressed with reams of paper are being progressively reduced to electronic charges. Such advances not only reduce the amount of human
effort required in making and completing financial transactions but facilitate more accuracy and
promptness in execution.
The considerable increase in the economic
well-being of most nations in recent decades has
come about without much change in the bulk or
weight of the gross national product. In fact, if all
the weight of materials—the tons of grain, cotton, ore, coal, steel, cement, and so forth—we
produce were added up, their aggregate volume
per capita might not be much greater today than
it was, say, 50 or 75 years earlier. This would
mean that increases in the conceptual components of GNP—that is, those reflecting advances
in knowledge and ideas—would explain by far
the major part of the rise in real GNP in the
United States, and presumably the industrial
world as a whole.
In part, this downsizing has reflected the economic need to conserve increasingly precious
space. Also, it has been a response to the need to
reduce the costs of moving goods and services to
their most highly valued use—thereby conserving on energy, labor, and other valuable resources. Further contributing to this process
have been quantum advances in technology,
spurred by economic forces. In recent years, the
explosive growth in information-gathering and
processing techniques has greatly extended our
analytical capabilities of substituting ideas for
physical volume. Since irreversible conceptual
gains are propelling the downsizing process,
these trends almost surely will continue into the
twenty-first century and beyond. The purpose of
production of economic value will not change. It
serves human needs and values. But the form of
output will be increasingly less tangible.
In the years ahead, telecommunications and
Statements
advanced computing will take on an even greater
role. They create value by facilitating the transfer
of ideas—that is, they create value by changing
the location of intellectual property—much like
the American railroads in an earlier time created
value by transferring physical goods to geographic locations where they were of greater
worth. In today's environment, economic value
is increasingly created by moving the conceptual
part of GNP—not coal or ore but data, analysis,
and insights—from one location to another
through increasingly sophisticated electronic
means.
Downsizing is having a profound impact on
international trade and on the policies of the
world's economies. International trade in construction gravel and fiberglass insulation, for
example, is limited by weight and bulk. High
value computer-related products, on the other
hand, are major and increasingly important components of world trade. Obviously, the less the
bulk, and the lower the weight, the easier it is to
move goods.
It is not surprising, therefore, to find that after
having adjusted for average export price
changes, pounds shipped per real dollar of exports have fallen an average of almost 3!/2 percent per year since 1970. Pounds shipped per real
dollar of U.S. imports declined even more, an
average of 43A percent per year. Reflecting the
downsizing of tradable goods, the share of U.S.
foreign trade carried by air has doubled since
1970. On a global basis, the real value of trade
has grown at an annual rate of 5 percent over the
past two decades, significantly outstripping the
growth in world domestic demand. In tonnage
terms, of course, the increase has been far less.
CONSEQUENCES FOR FINANCIAL
MARKETS
Clearly, as cross-border trade grows, gross surpluses and deficits on current account similarly
can be expected to grow. That is, owing to the
forces that are acting to boost the share of output
going to trade, net cross-border financial claims
relative to GNP can be expected to rise.
Moreover, new technology—especially computer and telecommunications technology—is
boosting gross financial transactions at an ever
to Congress
559
faster pace than the net transactions required to
finance current account deficits. Rapidly expanding data processing and virtually instantaneous
information transmission capacity are facilitating
in ways that were not feasible in earlier times the
development of a broad spectrum of complex
financial instruments that can be tailored to the
hedging, funding, and investment needs of a
growing array of market participants. Some of
this has involved an unbundling of financial risk
to meet the increasingly specialized risk avoidance requirements of market participants. Exchange rate and interest rate swaps, together
with financial futures and options, have become
important means by which currency and interest
rate risks get shifted to those most willing to take
it on. The proliferation of financial instruments,
in turn, implies an increasing number of arbitrage
opportunities, which tend to further boost gross
financial transactions volume in relation to output.
Portfolio considerations also are playing an
important role in the globalization of securities
markets. As the welfare of people in the United
States and abroad becomes more dependent on
the performance of external economies and exchange market developments, it is natural for
both individual investors and institutions that
directly or indirectly manage the assets of individuals to acquire or raise the weight of foreign
securities in investment portfolios. Such diversification provides investors a means of protecting
against depreciation of the local currency on
foreign exchange markets and domestic economic disturbances affecting asset values on local markets. Clearly, as international trade continues to expand more rapidly than global output
and domestic economies become even more
closely linked to those abroad, the objective of
diversifying international securities portfolios
will become increasingly important. Moreover,
since the U.S. dollar is still the key international
currency, such diversification has been, and may
continue to be, disproportionately into the dollar.
In summary, therefore, it would seem reasonable to assume that cross-border trading in securities will continue to expand rapidly for the
foreseeable future. This implies that investors
will wish to be able to adjust their holdings of
foreign securities during times that coincide with
560
Federal Reserve Bulletin • August 1989
their regular domestic trading hours. As a consequence, we can expect to see the move to
around-the-clock trading extending to more securities.
Already, we have virtually around-the-clock
trading in various U.S. Treasury securities
through global securities firms with offices in the
Far East and Europe as well as in the United
States. Global markets for the securities of other
governments are not at this time as developed as
those for our Treasury securities; however, the
potential exists for active around-the-clock markets in other government bonds, especially those
of Japan and Germany. Such trading in securities
creates a demand for hedging instruments—especially financial futures and options—and thus we
are likely to see more such instruments that also
trade outside regular domestic market hours.
In the corporate securities area, cross-border
trading of shares of large multinational firms has
become prominent, with considerable scope for
adjusting positions outside the regular hours of
the primary exchange on which the shares are
listed. In many cases, these shares are listed on
foreign exchanges—for example, foreign American Depository Receipts (ADRs) are listed on the
New York Stock Exchange—or are tracked on a
real-time basis, such as NASDAQ shares displayed on the terminals of International Stock
Exchange members in London. In other cases, a
fairly well-developed, over-the-counter market
has emerged.
While international securities activity has
grown rapidly in recent years, trading systems
have been undergoing changes—generally to reflect advanced computer and telecommunications technology. For example, the International
Stock Exchange in London moved to a terminalbased trading system at the time of the Big Bang
in 1986 and the Paris Bourse has nearly completed its conversion to an electronic trading
system.
Electronic trading system technology has considerable potential for around-the-clock trading.
The GLOBEX system being developed by the
Chicago Mercantile Exchange and the Chicago
Board of Trade's Aurora system are good examples. These exchanges have recently announced
that they will combine their systems, and afterhours trading of some futures contracts could
begin trading on the joint system this fall. Already, the futures exchanges of Paris and Sydney
have negotiated to put their products on the
GLOBEX system for after-hours trading, and
others have expressed interest. This type of
system could be adapted for trading other financial instruments.
As international securities trading has
surged—growing more rapidly than trade and
output—demands for clearing services across a
wide range of financial instruments have soared,
placing pressures on clearing and settlement systems. Some of these pressures arise from the
greater interdependence among clearing and settlement systems. Investors today engage in a
complex chain of financial transactions, often
involving positions in both national and international markets, and difficulties in the clearing and
settlement process in one of these markets can
affect their ability to discharge obligations in
others. We got a sense of such clearing and
settlement problems in October 1987, when the
options clearing system was weakened by large
losses in the options market and other difficulties
emerged from inadequate coordination of "pays
and collects" in the futures markets. A deficient
clearing system in Hong Kong not only contributed to paralysis in that marketplace but cast a
cloud over other markets as well.
The process of unbundling financial risk is a
factor boosting the volume of financial transactions and hence increasing strains on clearing and
settlement systems. Through the use of futures
and options, price or interest rate risk can, in
effect, be unbundled and new synthetic instruments created by shifting risk to other parties,
actions that raise clearing and settlement volume. Alternately, elements of risk can be transferred through interest rate and currency swaps;
in these cases, such shifting can lead to hedging
needs or to arbitrage opportunities that result in
additional transactions in markets for securities
and their derivatives and to enlarged clearing and
settlement volume, with attendant risks to clearing and settlement systems.
Another important dimension to securities
market risk resulting from growing internationalization is the emergence of large multinational
securities firms that increasingly act as underwriters, dealers, and brokers in securities mar-
Statements to Congress
kets around the globe. A loss by one or more of
these firms could impair that firm's functioning in
other markets, thereby potentially transmitting a
disturbance to those other markets. Such a disturbance could have ripple effects as creditors
and counterparties seek to reduce their exposure
to these firms and as confidence erodes in the
clearing and settlement systems in which these
firms are participants. Difficulties could also extend to commercial banks thought to have large
credit exposure to such securities firms.
We observed the potential for such a problem
emerge in October 1987, when it became evident
to the markets that certain firms committed to the
underwriting of British Petroleum shares in the
United Kingdom stood to lose substantial sums.
It is reported that for a brief period participants
in the U.S. securities markets were cautious
about dealing with these firms, a situation that
could have gotten decidedly worse if the underwriting environment had not stabilized.
If risks associated with cross-market and
cross-border securities activities are to be contained, then it is critical that large investment
firms have sound internal risk monitoring and
control procedures in place. Moreover, there is
no substitute for strong capital positions to act as
a buffer for losses.
It is worth noting that computer and telecommunications technology, while an important factor contributing to the globalization of securities
markets and to certain financial system risks, can
be used and is being used to limit risk. Information systems increasingly are permitting securities firms to monitor their global positions on a
timely basis, and virtually around-the-clock trading in some securities enables them to shed
unwanted risk promptly. Such technology also
permits clearing systems to monitor member
positions in their own markets on a timely basis
and to share member position information with
other clearing systems, thereby enhancing control of overall risk to clearing and settlement
systems.
The trend toward globalization of securities
firms and markets—including the move toward
around-the-clock trading in a growing array of
securities—not only provides investors with 24hour capability to adjust positions but also provides the investor or brokerage firm with more
561
choice of where an order will be placed. Factors
such as relative costs of trading in different
markets, liquidity, and the timing of clearing and
settlement systems thus may affect decisions
about where to place orders.
Such opportunities for choice lead to more
discipline being exerted on exchanges to control
costs and enhance liquidity. To the degree that
investors are concerned about the soundness and
timeliness of clearing and settlement systems,
discipline is imposed on the exchanges to
strengthen their clearing mechanisms. However,
to the degree that some markets seek to lower
costs and add to volume at the expense of capital
positions of securities firms or clearing system
safeguards, risks may be posed for other markets
and for the global financial system more broadly.
In other words, in an interdependent global marketplace, externalities are significant, and weaknesses in one financial center can pose serious
problems for other centers.
IMPLICATIONS FOR COORDINATION
The Brady Commission and others have characterized our domestic markets for stocks, index
futures, and options as, in effect, functioning as
one economic market. It is certainly clear that
the market for some securities and their derivatives has, in effect, already become a unified
global market, and others are rapidly moving in
this direction. Such international developments
obviously require a considerable degree of international coordination just as we have learned
that domestic markets for securities and their
derivatives require a high level of coordination.
Both the private and public sectors have important roles to play in the coordination of securities market policies. Among the areas needing
attention are capital of dealers and underwriters,
clearing, settlement and payment systems, circuit breakers, disclosure to investors, and accounting standards followed by securities issuers
and intermediaries. In addition, coordination of
insider trading rules and enforcement of securities market laws are issues of significance in the
area of securities market regulation and oversight. To an important degree, more standardization in areas such as clearing and settlement and
562
Federal Reserve Bulletin • August 1989
capital standards holds the promise of enhancing
efficiency while at the same time strengthening
market structures. Moreover, coordination of
policies in these areas will act to reduce the
scope for so-called regulatory arbitrage—that is,
artificial reasons for investors or securities
houses to favor one national market over others.
At the present time, a considerable amount of
effort is being expended to coordinate within and
across borders in these various areas. In some
cases, this involves regulatory authorities; in
some other cases, it involves the private sector;
and in still others, it involves a combination of
both. For example, there are a number of bilateral discussions between the Securities and Exchange Commission and securities market regulators in other countries on issues relating to the
exchange of information and enforcement of securities market laws. Also, central banks have,
within the context of their responsibilities for
national payment systems, been addressing risks
associated with securities clearing and settlement
and are working to coordinate policies on payment system netting arrangements.
The International Organization of Securities
Commissions, a group of national securities authorities, has established various working groups
seeking to coordinate, among other things, accounting standards and capital requirements of
securities firms. The Group of 30, composed of
private-sector representatives from the securities
and banking industries, recently advanced a constructive set of guidelines for securities clearing
and settlement and now is in the process of
seeking implementation. The Organization for
Economic Cooperation and Development has
established a group of securities market experts
focusing explicitly on the issue of systemic risk in
global securities markets.
It is important to realize that the contributions
that the private and public sectors can make
differ, depending on the issue. On matters such
as clearing and settlement, the private sector has
much to offer given its expertise and considerable self-interest in developing a sound global
securities clearing and settlement system. Other
areas, such as insider trading and enforcement,
clearly require coordination among regulators.
Also, some matters are going to be resolved
most effectively through bilateral approaches
while others lend themselves to multilateral solutions. The nature and regulation of securities
markets have been sufficiently diverse that a
multilateral regulatory approach along the lines
of the Basle agreement on capital guidelines for
commercial banks may be difficult, given the entire
scope of matters requiring coordination. In any
event, it is important that regulatory authorities
continue to monitor overall progress in this area and
seek to identify and address elements of weakness.
At the present time, it appears that progress is
being made in key areas needing attention. Given
the diversity of traditional national standards, it
may well take longer to reach agreements than
we are accustomed to in our domestic financial
system. It is also likely that as these coordination
efforts get further along, necessary legislative
changes will become more evident.
LEGISLATIVE
ISSUES
This subcommittee has heard a great deal of
testimony in recent months about steps that have
been taken by our national exchanges and clearinghouses to strengthen existing systems and to
improve coordination among markets and market
participants. As these hearings proceed, you, no
doubt, will hear many more ideas and concerns
about the future direction of these markets.
It is encouraging that so many resources in the
public and private sectors are being focused on
these issues. It also is encouraging that so much
can be, and is being, done within the existing
legislative and regulatory framework that oversees our financial system. With a notable exception, we at the Federal Reserve Board do not at
this time see a need for major legislative changes
of our securities laws and regulatory structure.
In the previous Congress, the Senate had
passed a bill that would have broadened the
powers of banking organizations in the securities
market area. We supported that bill on the
grounds that our banking organizations have a lot
to contribute to the development of a stronger
and more efficient securities market, both domestically and globally. The formula embodied in the
Senate bill last year would enable our banks to
become more competitive in these markets but in
a manner that would not jeopardize the safety of
Statements
to Congress
563
the commercial bank entities or the federal safety
net applied to the commercial banking system.
We trust the Congress will return to this matter
promptly.
In closing, the stability of our financial markets
must, of course, at root, rest on the performance
of the world economy. Thus, at the very top of
our consideration in maintaining a sound financial structure is the pursuit of sound economic
policies, both domestically, and to the extent
relevant, on a coordinated international basis. At
the same time, we must seek to strengthen that
financial structure through appropriate market
reforms, recognizing that even a system with
formidable safeguards will be unable to insure
against a disruption resulting from a massive
speculative imbalance. Through the cooperative
efforts of the private and public sectors, we can
go a considerable distance in improving the
safety and soundness of our financial market
systems, but we cannot realistically expect to
eliminate all risks to these systems.
•
Statement by William Taylor, Director, Division
of Banking Supervision and Regulation, Board of
Governors of the Federal Reserve System, before
the Subcommittee on International Development,
Finance, Trade and Monetary Policy of the Committee on Banking, Finance and Urban Affairs,
U.S. House of Representatives, June 27, 1989.
lion to a level of about $65 billion. Much of this
reduction was achieved through mechanisms that
also reduced the countries' external debt-service
requirements.
Second, bank capital has been strengthened as
both bankers and banking supervisors have recognized the need to increase the capital cushion
available to absorb potential losses. Between
December 1982 and December 1988, primary
capital for twenty-two of the largest U.S. banks
increased from $40 billion to $74 billion. When
measured against declining levels of exposure to
countries with debt-servicing problems, this increase in capital is substantial. Exposure relative
to primary capital for nine money center banks
has declined from 233 percent in 1982 to 106
percent at year-end 1988. For thirteen large regional banks, exposure to these countries has
declined from 154 percent to 55 percent during
the same period.
Third, earnings of large U.S. multinational
banks are generally at higher levels and are
somewhat more diversified than in the past.
Higher earning levels lead to stronger capitalized
organizations, and more diverse earnings help to
act as a cushion if a major borrower or borrowing
sector experiences debt-servicing difficulties.
Finally, U.S. banks have set aside large
amounts in their general loan-loss reserves for
their exposure to developing countries. These
reserves help to cushion a bank's balance sheet
from losses on these loans.
In summary, the improved condition of the
U.S. banking system through increases in capital
and reserves has reduced the vulnerability of the
U.S. banking system to debt-servicing difficulties
I am pleased to have this opportunity to appear
before this committee to discuss bank supervisory policies regarding U.S. bank lending to
developing countries. Before I focus on the regulatory and accounting issues concerning developing country debt, especially as they relate to
Secretary Brady's proposal, I would like to begin
by summarizing the condition of the banking
system within the context of bank claims on
developing countries.
THE BANKING SYSTEM
AND DEVELOPING COUNTRY
DEBT
The U.S. banking system is less vulnerable to
potential debt-servicing difficulties of developing
countries than it was when these problems first
surfaced in the early 1980s. However, the vulnerability of some of the largest U.S. banks to
these problems is still of significant concern.
Several considerations support this judgement.
First, through a variety of transactions, U.S.
banks are adjusting their portfolio of claims on
developing countries while decreasing their overall exposure levels. In 1988, twenty-two of the
largest U.S. banks reduced their net exposure to
problem debtor countries approximately $9 bil-
564
Federal Reserve Bulletin • August 1989
of developing countries. However, the substantial exposure levels of the largest U.S. banks
require that these banks continue to build their
reserves and capital in an orderly manner. At the
same time, it seems to be in the interests of the
banks to support borrowing countries so that
they may reform their economies to restore economic growth, thereby enhancing their creditworthiness.
ACCOUNTING AND REGULATORY POLICIES
AFFECTING DEBT RESTRUCTURING
Bank regulatory and accounting policies pertaining to developing country loans of U.S. banks are
designed to maintain the safety and soundness of
the financial system. These policies are consistent with those regulations governing other aspects of the banking business.
Current regulatory policies provide considerable flexibility for U.S. banks to engage in transactions to adjust or reduce their exposure to
developing countries. Such transactions have
had the effect of reducing the debt-servicing
obligations of developing countries and have
included debt exchanges, debt-for-equity swaps,
and discounted buybacks of debt. Bank regulatory policy is not a barrier to further bank
participation in debt-reduction transactions as
envisioned by Secretary Brady's proposals.
Accounting rules for loans of U.S. banks to
developing countries, like requirements for other
debts, provide for disclosure of information to
enable investors to judge the financial condition
of a bank and the financial impact of management's decisions in a meaningful and consistent
manner. Banks are required by the Securities and
Exchange Commission to disclose information
on significant sovereign debt restructurings, including the amount of exposure, changes in exposure, and the impact of restructurings on earnings. Considerable information is also required to
be provided directly to bank regulatory authorities. Failure to provide meaningful financial information inhibits effective banking supervision
and can undermine depositor and investor confidence.
Generally accepted accounting practices require banks that intend to swap or sell a claim on
a developing country (or any other credit) to
value that credit at current market value and to
establish sufficient reserves to cover any anticipated losses associated with that transaction. For
those loans or portions of loans that are expected
to be held as a long-term investment, the carrying
value less any related reserve must reflect a
realistic assessment of the ultimate value likely
to be collected. Consequently, depending upon
management's intention of either remaining or
exiting from the business of lending to developing countries, the carrying value of developing
country credits and reserve levels varies from
bank to bank.
I would like to comment briefly on the International Lending Supervision Act of 1983
(ILSA). In passing ILSA, the Congress carefully
balanced the interest of debtor countries in maintaining access to private credit markets against
the requirements for maintaining a safe and
sound banking system. Based on these considerations, the Congress required that banks set
aside specific allocated transfer risk reserves
(ATRR) against credits that have been impaired
by a protracted inability of foreign borrowers to
make payments on their external indebtedness.
The law and the implementing regulations essentially require an ATRR against credits to countries that are not servicing their debts and are not
moving toward implementing sound economic
policies that can restore growth and enhance
creditworthiness. Such reserves are not required
against credits to countries that are maintaining
debt service and are working with the international institutions to develop and implement
sound economic policies.
I believe that this distinction based upon the
overall performance of borrowers is valid, and it
is crucial that it be preserved. Much headway
already undertaken to resolve the developing
country debt crisis could be lost by requiring an
ATRR against credits to countries that are following responsible economic and debt-servicing
policies.
Those who argue for expansion of the allocated reserves usually do so in the belief that the
establishment of a specific reserve by a bank,
which is the functional equivalent of a charge-off,
can benefit a borrowing country. It should be
clearly understood that a mandated charge-off of
Statements to Congress
a loan, while tax-deductible, does not necessarily
diminish a bank's incentive to collect in full on
the credit; nor does it encourage the bank to sell
or redeem the credit at a discount. In fact, unlike
U.S. banks, most banks from countries with
large tax-deductible reserves have not actively
participated in voluntary debt reduction transactions such as secondary market sales or exchanges of debt for equity investments.
To date the allocated reserves required pursuant to ILSA have been applied to twelve countries. These countries generally are the weakest
economic performers and have essentially no
access to international credit from private markets. Many of these countries have taken unilateral decisions to reduce or suspend debt service
to banks. In most cases a further deterioration in
economic activity and living standards has followed such actions by these countries.
Rather than unduly expand the scope of the
allocated reserve, U.S. banking supervisors have
required banks with significant exposures to
troubled sovereign borrowers to strengthen their
general loan-loss reserves and capital. As previously mentioned, U.S. banks have set aside large
amounts in their general loan-loss reserves for
exposures to developing countries. Many regional U.S. banks have adopted a strategy of
exiting from this business by selling their loans in
the secondary market. To absorb the related
losses, they have established commensurately
high reserve levels. Most money center banks,
with a longer history of involvement in these
countries and multinational corporate clientele
requiring ongoing banking services, have a more
optimistic view of this business. These banks
apparently intend to hold the bulk of their credits
as long-term investments. To the extent that
these banks are swapping or reducing debt, their
strong local presence in the debtor countries has
enabled them to realize prices well above those
prevailing in the secondary market.
The adequacy of these general reserves is also
judged within the context of an organization's
overall capital structure and financial condition.
Banking regulators examine an institution's fi-
565
nancial condition, its management and asset
quality, and the current financial and economic
conditions in assessing the adequacy of bank
capital. This capital must support several risks
other than developing country lending. To assure
the adequacy of bank capital, those institutions
with significant exposure to developing countries
must continue to augment their capital and reserves in an orderly fashion. In particular, it is
necessary for these banks to review reserve
levels frequently and systematically in light of
changing circumstances.
The proposals set forth by Secretary Brady
provide an opportunity for reinvigorating developing country debt strategy. However, I do not
believe that bank supervisory policies can, or
should, be used as incentives or disincentives to
influence further the implementation of these
proposals. The decisions of both foreign and
domestic banks on debt restructurings will inevitably be determined by whether a particular
restructuring provides the best means for realizing the maximum possible value on their loans.
While the implementation of Secretary Brady's
proposals will require the recognition of some
losses on the part of the banks, if properly
implemented, it should improve the quality of the
remaining credits and prevent further deterioration.
In this regard, while several positive steps
have been taken recently, progress has not been
as great as expected when the Federal Reserve
testified on this issue before the House Banking
Committee at the beginning of this year. What
concerns me as a bank regulator is that without
further cooperation between borrowers and lenders, credit quality will continue to deteriorate as
more countries become unable or unwilling to
service their bank debts. In such an event, further significant increases in reserves will clearly
be required. Time is running short and uncertainties appear to be increasing. In this environment,
it is expected that banks with large exposures
will further strengthen their capital and reserve
levels.
•
566
Announcements
H. ROBERT
HELLER:
RESIGNATION AS A MEMBER
OF THE BOARD OF GOVERNORS
H. Robert Heller resigned as a member of the
Board of Governors, effective July 31, 1989.
Following is the text of Governor Heller's letter
of resignation to President Bush:
In your three years as a Member of the Board, you
helped shape decisions that had a profound impact
upon the economy of the United States and the world.
Your role in sustaining the economic vitality of our
country during the last few years was a significant one,
in which you can justifiably take pride.
I wish you all success in your endeavors in the
private sector, and Barbara joins me in wishing you
and your family all happiness in your California homeland.
June 20, 1989
Sincerely,
President George Bush
The White House
Washington, D.C. 20500
George Bush
Dear Mr. President,
AMENDMENTS
It has been my great honor and privilege to have
served on the Board of Governors of the Federal
Reserve System for the last few years. I found it a
distinct personal pleasure and a professionally rewarding experience to have been associated with a group of
exceptional colleagues during a period of unprecedented economic prosperity and significant change in
the banking system.
I am grateful to President Reagan and to you for
having given me this opportunity to serve the nation.
Unfortunately, personal considerations make it now
necessary for me to return to the private sector and I
therefore submit my resignation from the Board, effective July 31, 1989.
Respectfully yours,
H. Robert Heller
The letter of acceptance from President Bush
follows.
The White House
Washington
July 19, 1989
Dear Governor Heller:
I accept with regret your resignation as a Member of
the Board of Governors of the Federal Reserve System, effective July 31, 1989.
TO REGULATION
Z
The Federal Reserve Board issued on June 5,
1989, its final rules to carry out provisions of the
Home Equity Loan Consumer Protection Act.
The rules are effective June 7, but compliance is
optional until November 7.
The new rules are in the form of amendments
to the Board's Regulation Z (Truth in Lending)
and generally expand the existing disclosures
that must be given to consumers by lenders.
They also require that the disclosures be provided at an earlier time in the application process.
In December 1987, the Board proposed
amendments to Regulation Z to change the existing disclosure requirements for home equity lines
of credit secured by a consumer's principal
dwelling. Subsequently, the Congress adopted
the Home Equity Loan Consumer Protection Act
on November 23, 1988, and the Board published
a proposed rule to implement the new law on
January 23, 1989.
Under the new rule, creditors must give detailed disclosures, grouped together and separated from unrelated information, at the time an
open-end home equity plan application is provided to the customer. This more detailed information includes the following: (1) the payment
567
terms of the plan; (2) an example of the payments; (3) the fees the creditor imposes to open
or use the plan; (4) an estimate of fees imposed by
third parties; and (5) any variable-rate features,
including the index used to determine the rate.
In addition to the disclosures, creditors must
also provide to the customer a brochure outlining
the general features of home equity plans. Such a
brochure is currently under preparation by the
Board.
Disclosures and the brochure generally must
be given at the time an application is given to the
consumer although extra time is permitted in
some cases, such as when applications are made
by telephone or through intermediaries.
MEETING OF CONSUMER
COUNCIL
ADVISORY
The Federal Reserve Board announced that its
Consumer Advisory Council met on June 22,
1989.
REVISIONS TO THE METHODOLOGY FOR
COMPUTING THE PRIVATE SECTOR
ADJUSTMENT FACTOR
The Federal Reserve Board announced on June
16, 1989, revisions to the methodology for computing the Private Sector Adjustment Factor
(PSAF). The methodology is essentially that as
proposed for public comment on January 23,
1989 (Docket No. R-0656).
The PSAF is intended to reflect an allocation
of imputed costs that takes into account the taxes
that would have been paid and the return on
capital that would have been provided had the
services been furnished by a private business
firm as required by the Monetary Control Act.
The revisions are designed to reduce the necessity for ad hoc adjustments and to respond to
industry questions regarding the PSAF calculation. The revisions become effective with the
computation of the PSAF for 1990.
PROPOSED ACTIONS
POLICY STATEMENTS ON REDUCTION OF
RISK IN THE PAYMENT SYSTEM
The Federal Reserve Board issued on June 16,
1989, three risk-related policy statements as part
of its overall program on Payment System Risk
Reduction.
A Policy Statement on Private Book-Entry
Systems (Docket No. R-0665) establishes guiding
principles for reducing risk on delivery-againstpayment systems that settle on a net same-day
basis over the Federal Reserve's wire transfer
system.
An Interim Policy Statement on Offshore Netting and Clearing Arrangements (Docket No.
R-0666) establishes guiding principles for any
offshore dollar clearing or settlement system
settling directly or indirectly in the United States.
A Policy Statement on Rollovers and Continuing Contracts to Reduce Daylight Overdraft Exposure (Docket No. R-0667) encourages the prudential use of rollovers and continuing contracts
to reduce daylight overdrafts on Fedwire.
The Federal Reserve Board issued for public
comment on June 16, 1989, proposed changes to
its policy on Large Dollar Payment System Risk
designed to reduce risk to the Federal Reserve
and to the payments system in general. Comments must be submitted to the Board by November 17, 1989.
The Federal Reserve Board is also seeking
public comment on whether to modify a restriction on underwriting asset-based securities of
affiliates in the Board's orders under section 20 of
the Glass-Steagall Act. Comments must be submitted to the Board by July 20, 1989.
In addition, the Board is seeking public comment on whether to increase from 5 percent to
10 percent the revenue limit established by the
Board in its orders authorizing bank holding
company subsidiaries to underwrite and deal in
bank-ineligible securities consistent with section 20 of the Glass-Steagall Act. Comments
must be submitted to the Board by July 20,
1989.
569
Legal Developments
AMENDMENT
TO REGULATION
Z
The Board of Governors is amending 12 C.F.R. Part
226, its Regulation Z (Truth in Lending), to implement
the Home Equity Loan Consumer Protection Act of
1988. The law requires creditors to provide consumers
with extensive information for open-end credit plans
secured by the consumer's dwelling, and imposes
substantive limitations on these plans. Creditors will
have to provide information at the time an application
is provided to the consumer, including information
about the payment terms, fees imposed under the plan,
and, for variable-rate plans, information about the
index and a fifteen-year history of changes in the index
values. Creditors will be required to provide consumers with a brochure prepared by the Board (or a
suitable substitute) describing home equity plans. The
regulation also imposes duties on third parties who
provide applications to consumers and modifies the
rules relating to advertisements for home equity plans.
In addition, to these disclosure requirements, the
regulation limits a creditor's right to terminate a plan
and accelerate any outstanding balance, or to change
the terms of a plan after it has been opened, and limits
the type of index that can be used for variable-rate
plans.
Effective June 7, 1989, but compliance is optional
until November 7, 1989, 12 C.F.R. Part 226 is
amended as follows:
1. The authority citation for Part 226 continues to read
as follows:
Authority: Truth in Lending Act, 15 U.S.C. 1604 and
sec. 2, Pub. L. No. 100-583, 102 Stat. 2960; Section
1204(c), Competitive Equality Banking Act, Pub. L.
No. 100-86, 101 Stat. 552.
(b) Purpose. The purpose of this regulation is to
promote the informed use of consumer credit by
requiring disclosures about its terms and cost. * * * In
addition, the regulation requires a maximum interest
rate to be stated in variable-rate contracts secured by
the consumer's dwelling, and imposes limitations on
home equity plans that are subject to the requirements
of section 226.5b. The regulation does not govern
charges for consumer credit.
(c) Coverage. * * *
(3) In addition, certain requirements of section
226.5b apply to persons who are not creditors but
who provide applications for home equity plans to
consumers.
(d) Organization. * * *
(2) Subpart B contains the rules for open-end credit.
It requires that initial disclosures and periodic statements be provided, as well as additional disclosures
for credit and charge card applications and solicitations and for home equity plans subject to the requirements of sections 226.5a and 226.5b, respectively.
Subpart B—Open-End Credit
3. Section 226.5 is amended by revising footnote 8 to
read as follows:
8. The disclosures required under section 226.5a for credit
and charge card applications and solicitations, the home
equity disclosures required under section 226.5b(d), the alternative summary billing rights statement provided for in
section 226.9(a)(2), the credit and charge card renewal disclosures required under section 226.9(e), and the disclosures
made under section 226.10(b) about payment requirements
need not be in a form that the consumer can keep.
Subpart A—General
3a. Section 226.5 is further amended by adding paragraphs (a)(4) and (b)(4) to read as follows:
2. Section 226.1 is amended by revising paragraphs (b)
and (d)(2) and adding paragraph (c)(3) to read as follows:
Section 226.5—General Disclosure
Requirements
Section 226.1—Authority, Purpose, Coverage,
Organization, Enforcement and Liability
(a) Form of disclosures. * * *
(4) For rules governing the form of disclosures for
home equity plans, see section 226.5b(a).
(b) Time of disclosures. * * *
570
Federal Reserve Bulletin • August 1989
(4) Home equity plans. Disclosures for home equity
plans shall be made in accordance with the timing
requirements of section 226.5(b).
The requirements of this section apply to open-end
credit plans secured by the consumer's dwelling. For
purposes of this section, an annual percentage rate is
the annual percentage rate corresponding to the periodic rate as determined under section 226.14(b).
(a) Form of disclosures.
(1) General. The disclosures required by paragraph
(d) of this section shall be made clearly and conspicuously and shall be grouped together and segregated
from all unrelated information. The disclosures may
be provided on the application form or on a separate
form. The disclosure described in paragraph
(d)(4)(iii), the itemization of third-party fees described in paragraph (d)(8), and the variable-rate
information described in paragraph (d)(12) of this
section may be provided separately from the other
required disclosures.
(2) Precedence of certain disclosures. The disclosures
described in paragraph (d)(1) through (4)(ii) of this
section shall precede the other required disclosures.
(b) Time of disclosures. The disclosures and brochure
required by paragraphs (d) and (e) of this section shall
be provided at the time an application is provided to
the consumer.103
(c) Duties of third parties. Persons other than the
creditor who provide applications to consumers for
home equity plans must provide the brochure required
under paragraph (e) of this section at the time an
application is provided. If such persons have the
disclosures required under paragraph (d) of this section for a creditor's home equity plan, they also shall
provide the disclosures at such time.10a
(d) Content of disclosures. The creditor shall provide
the following disclosures, as applicable:
(1) Retention of information. A statement that the
consumer should make or otherwise retain a copy of
the disclosures.
(2) Conditions for disclosed terms.
(i) A statement of the time by which the consumer
must submit an application to obtain specific
terms disclosed and an identification of any disclosed term that is subject to change prior to
opening the plan.
(ii) A statement that, if a disclosed term changes
(other than a change due to fluctuations in the
index in a variable-rate plan) prior to opening the
plan and the consumer therefore elects not to
open the plan, the consumer may receive a refund
of all fees paid in connection with the application.
(3) Security interest and risk to home. A statement
that the creditor will acquire a security interest in
the consumer's dwelling and that loss of the dwelling may occur in the event of default.
(4) Possible actions by creditor.
(i) A statement that, under certain conditions, the
creditor may terminate the plan and require payment of the outstanding balance in full in a single
payment and impose fees upon termination; prohibit additional extensions of credit or reduce the
credit limit; and, as specified in the initial agreement, implement certain changes in the plan.
(ii) A statement that the consumer may receive,
upon request, information about the conditions
under which such actions may occur.
(iii) In lieu of the disclosure required under paragraph (d)(4)(H) of this section, a statement of such
conditions.
(5) Payment terms. The payment terms of the plan,
including:
(i) The length of the draw period and any repayment period.
(ii) An explanation of how the minimum periodic
payment will be determined and the timing of the
payments. If paying only the minimum periodic
payments may not repay any of the principal or
may repay less than the outstanding balance, a
statement of this fact, as well as a statement that
a balloon payment may result.10b
10a. The disclosures and the brochure may be delivered or placed in
the mail not later than three business days following receipt of a
consumer's application in the case of applications contained in magazines or other publications, or when the application is received by
telephone or through an intermediary agent or broker.
10b. A balloon payment results if paying the minimum periodic
payments does not fully amortize the outstanding balance by a
specified date or time, and the consumer must repay the entire
outstanding balance at such time.
4. Section 226.5a is amended by revising paragraph
(a)(3) to read as follows:
Section 226.5a—Credit and Charge Card
Applications and Solicitations
(3) Exceptions. This section does not apply to home
equity plans accessible by a credit or charge card that
are subject to the requirements of section 226.5b;
5. A new section 226.5b is added to read as follows:
Section 226.5b—Requirements for Home
Equity Plans
Legal Developments
(iii) An example, based on a $10,000 outstanding
balance and a recent annual percentage rate,10c
showing the minimum periodic payment, any balloon payment, and the time it would take to repay
the $10,000 outstanding balance if the consumer
made only those payments and obtained no additional extensions of credit.
If different payment terms may apply to the draw and
any repayment period, or if different payment terms
may apply within either period, the disclosures shall
reflect the different payment terms.
(6) Annual percentage rate. For fixed-rate plans, a
recent annual percentage rate10c imposed under the
plan and a statement that the rate does not include
costs other than interest.
(7) Fees imposed by creditor. An itemization of any
fees imposed by the creditor to open, use, or maintain the plan, stated as a dollar amount or percentage, and when such fees are payable.
(8) Fees imposed by third parties to open a plan. A
good faith estimate, stated as a single dollar amount
or range, of any fees that may be imposed by
persons other than the creditor to open the plan, as
well as a statement that the consumer may receive,
upon request, a good faith itemization of such fees.
In lieu of the statement, the itemization of such fees
may be provided.
(9) Negative amortization. A statement that negative amortization may occur and that negative amortization increases the principal balance and reduces the consumer's equity in the dwelling.
(10) Transaction requirements. Any limitations on
the number of extensions of credit and the amount
of credit that may be obtained during any time
period, as well as any minimum outstanding balance
and minimum draw requirements, stated as dollar
amounts or percentages.
(11) Tax implications. A statement that the consumer should consult a tax advisor regarding the
deductibility of interest and charges under the plan.
(12) Disclosures for variable-rate plans. For a plan
in which the annual percentage rate is variable, the
following disclosures, as applicable:
(i) The fact that the annual percentage rate, payment, or term may change due to the variable-rate
feature.
10c. For fixed-rate plans, a recent annual percentage rate is a rate
that has been in effect under the plan within the twelve months
preceding the date the disclosures are provided to the consumer. For
variable-rate plans, a recent annual percentage rate is the most recent
rate provided in the historical example described in paragraph
(d)(12)(xi) of this section or a rate that has been in effect under the plan
since the date of the most recent rate in the table.
571
(ii) A statement that the annual percentage rate
does not include costs other than interest.
(iii) The index used in making rate adjustments
and a source of information about the index.
(iv) An explanation of how the annual percentage
rate will be determined, including an explanation
of how the index is adjusted, such as by the
addition of a margin.
(v) A statement that the consumer should ask
about the current index value, margin, discount or
premium, and annual percentage rate.
(vi) A statement that the initial annual percentage
rate is not based on the index and margin used to
make later rate adjustments, and the period of
time such initial rate will be in effect.
(vii) The frequency of changes in the annual
percentage rate.
(viii) Any rules relating to changes in the index
value and the annual percentage rate and resulting
changes in the payment amount, including, for
example, an explanation of payment limitations
and rate carryover.
(ix) A statement of any annual or more frequent
periodic limitations on changes in the annual
percentage rate (or a statement that no annual
limitation exists), as well as a statement of the
maximum annual percentage rate that may be
imposed under each payment option.
(x) The minimum periodic payment required when
the maximum annual percentage rate for each
payment option is in effect for a $10,000 outstanding balance, and a statement of the earliest date or
time the maximum rate may be imposed.
(xi) An historical example, based on a $10,000
extension of credit, illustrating how annual percentage rates and payments would have been
affected by index value changes implemented
according to the terms of the plan. The historical
example shall be based on the most recent 15
years of index values (selected for the same time
period each year) and shall reflect all significant
plan terms, such as negative amortization, rate
carryover, rate discounts, and rate and payment
limitations, that would have been affected by the
index movement during the period.
(xii) A statement that rate information will be
provided on or with each periodic statement.
(e) Brochure. The home equity brochure published by
the Board or a suitable substitute shall be provided.
(f) Limitations on home equity plans. No creditor may,
by contract or otherwise:
(1) Change the annual percentage rate unless:
(i) such change is based on an index that is not
under the creditor's control; and
(ii) such index is available to the general public.
572
Federal Reserve Bulletin • August 1989
(2) Terminate a plan and demand repayment of the
entire outstanding balance in advance of the original
term unless:
(i) there is fraud or material misrepresentation by
the consumer in connection with the plan;
(ii) the consumer fails to meet the repayment
terms of the agreement for any outstanding balance; or
(iii) any action or inaction by the consumer adversely affects the creditor's security for the plan,
or any right of the creditor in such security.
(3) Change any term, except that a creditor may:
(i) Provide in the initial agreement that specified
changes will occur if a specific event takes place
(for example, that the annual percentage rate will
increase a specified amount if the consumer
leaves the creditor's employment).
(ii) Change the index and margin used under the
plan if the original index is no longer available, the
new index has an historical movement substantially similar to that of the original index, and the
new index and margin would have resulted in an
annual percentage rate substantially similar to the
rate in effect at the time the original index became
unavailable.
(iii) Make a specified change if the consumer
specifically agrees to it in writing at that time.
(iv) Make a change that will unequivocally benefit
the consumer throughout the remainder of the
plan.
(v) Make an insignificant change to terms.
(G) the maximum annual percentage rate is
reached.
(g) Refund of fees. A creditor shall refund all fees paid
by the consumer to anyone in connection with an
application if any term required to be disclosed under
paragraph (d) of this section changes (other than a
change due to fluctuations in the index in a variablerate plan) before the plan is opened and, as a result,
the consumer elects not to open the plan.
(h) Imposition of nonrefundable fees. Neither a creditor nor any other person may impose a nonrefundable
fee in connection with an application until three business days after the consumer receives the disclosures
and brochure required under this section. 10d
(vi) Prohibit additional extensions of credit or
reduce the credit limit applicable to an agreement
during any period in which:
(3) A statement that negative amortization may
occur as described in section 226.5b(d)(9).
(A) the value of the dwelling that secures the
plan declines significantly below the dwelling's
appraised value for purposes of the plan;
(B) the creditor reasonably believes that the
consumer will be unable to fulfill the repayment
obligations under the plan because of a material
change in the consumer's financial circumstances;
(C) the consumer is in default of any material
obligation under the agreement;
(D) the creditor is precluded by government
action from imposing the annual percentage
rate provided for in the agreement;
(E) the priority of the creditor's security interest is adversely affected by government action
to the extent that the value of the security
interest is less than 120 percent of the credit
line;
(F) the creditor is notified by its regulatory
agency that continued advances constitute an
unsafe and unsound practice; or
6. Section 226.6 is amended by adding paragraph (e) to
read as follows:
Section 226.6—Initial Disclosure Statement
(e) Home equity plan information. The following disclosures described in section 226.5b(d), as applicable:
(1) A statement of the conditions under which the
creditor may take certain action, as described in
section 226.5b(d)(4)(i), such as terminating the plan
or changing the terms.
(2) The payment information described in sections
226.5b(d)(5)(i) and (ii) for both the draw period and
any repayment period.
(4) A statement of any transaction requirements as
described in section 226.5b(d)(10).
(5) A statement regarding the tax implications as
described in section 226.5b(d)(ll).
(6) A statement that the annual percentage rate
imposed under the plan does not include costs other
than interest as described in sections 226.5b(d)(6)
and 226.5b(d)(12)(ii).
(7) The variable-rate disclosures described in sections 226.5b(d)(12)(viii), (x), (xi), and (xii), as well as
the disclosure described in section 226.5b(d)(5)(iii),
unless the disclosures provided with the application
were in a form the consumer could keep and included a representative payment example for the
category of payment option chosen by the consumer.
lOd. If the disclosures and brochure are mailed to the consumer, the
consumer is considered to have received them three business days
after they are mailed.
Legal Developments
573
7. Section 226.9 is amended by adding paragraph (c)(3)
to read as follows:
Section 226.16—Advertising
Section 226.9—Subsequent Disclosure
Requirements
(d) Additional requirements for home equity plans.
(1) Advertisement of terms that require additional
disclosures. If any of the terms required to be
disclosed under sections 226.6(a) or (b) or the payment terms of the plan are set forth, affirmatively or
negatively, in an advertisement for a home equity
plan subject to the requirements of section 226.5b,
the advertisement also shall clearly and conspicuously set forth the following:
(i) Any loan fee that is a percentage of the credit
limit under the plan and an estimate of any other
fees imposed for opening the plan, stated as a
single dollar amount or a reasonable range.
(ii) Any periodic rate used to compute the finance
charge, expressed as an annual percentage rate as
determined under section 226.14(b).
(iii) The maximum annual percentage rate that
may be imposed in a variable-rate plan.
(2) Discounted and premium rates. If an advertisement states an initial annual percentage rate that is
not based on the index and margin used to make
later rate adjustments in a variable-rate plan, the
advertisement also shall state the period of time
such rate will be in effect, and, with equal prominence to the initial rate, a reasonably current annual
percentage rate that would have been in effect using
the index and margin.
(3) Balloon payment. If an advertisement contains a
statement about any minimum periodic payment,
the advertisement also shall state, if applicable, that
a balloon payment may result.10b
(4) Tax implications. An advertisement that states
that any interest expense incurred under the home
equity plan is or may be tax deductible may not be
misleading in this regard.
(5) Misleading terms. An advertisement may not
refer to a home equity plan as "free money" or
contain a similarly misleading term.
(c) Change in terms.
(3) Notice for home equity plans. If a creditor
prohibits additional extensions of credit or reduces
the credit limit applicable to a home equity plan
pursuant to section 226.5b(f)(3)(vi), the creditor
shall mail or deliver written notice of the action to
each consumer who will be affected. The notice
must be provided not later than three business days
after the action is taken and shall contain specific
reasons for the action. If the creditor requires the
consumer to request reinstatement of credit privileges, the notice also shall state that fact.
8. Section 226.14 is amended by revising paragraph (b)
to read as follows:
Section 226.14—Determination of Annual
Percentage Rate
(b) Annual percentage rate for sections 226.5a and
226.5b disclosures, for initial disclosures and for advertising purposes. Where one or more periodic rates
may be used to compute the finance charge, the annual
percentage rate(s) to be disclosed for purposes of
sections 226.5a, 226.5b, 226.6, and 226.16 shall be
computed by multiplying each periodic rate by the
number of periods in a year.
9. Section 226.15 is amended by revising footnote 36 to
read as follows:
36. The term "material disclosures" means the information
that must be provided to satisfy the requirements in section
226.6 with regard to the method of determining the finance
charge and the balance upon which a finance charge will be
imposed, the annual percentage rate, the amount or method
of determining the amount of any membership or participation fee that may be imposed as part of the plan, and the
payment information described in sections 226.5b(d)(5)(i) and
(ii) that is required under section 226.6(e)(2).
10. Section 226.16 is amended by adding paragraph (d)
to read as follows:
jjc
*
$
*
$
*
i)C
*
$
*
11. Appendix G is amended by adding model forms
and clauses G-14A, G-14B, G-14C, and G-15 to read as
follows:
APPENDIX G—OPEN-END MODEL FORMS AND
CLAUSES
G-14A Home Equity Sample
G-14B Home Equity Sample
574
Federal Reserve Bulletin • August 1989
G-14C
G-15
Home Equity Sample (Repayment phase disclosed later)
Home Equity Model Clauses
ORDERS ISSUED UNDER BANK
COMPANY ACT
HOLDING
Orders Issued Under Section 3 of the Bank
Holding Company Act
Banc One Corporation
Columbus, Ohio
Order Approving Acquisition of a Bank
Banc One Corporation, Columbus, Ohio ("Applicant"), a bank holding company within the meaning of
the Bank Holding Company Act (the "BHC Act"),
has applied for the Board's approval under section 3 of
the BHC Act (12 U.S.C. § 1842) to acquire control,
through Banc One Texas Corporation, Columbus,
Ohio, of Deposit Insurance Bridge Bank, N.A., a
bridge bank ("Bank") created by the Federal Deposit
Insurance Corporation ("FDIC") to acquire the assets
and assume the deposits and liabilities of twenty bank
subsidiaries of MCorp, Dallas, Texas. Applicant proposes to immediately enter into a management agreement with the FDIC that provides that Applicant will
operate Bank under the name Bank One Texas, National Association, with general discretion over, and
responsibility for, the daily operations of Bank. Applicant also proposes to acquire all of the voting shares of
Bank.
On March 28 and 29, 1989, twenty bank subsidiaries
of MCorp were declared insolvent and the FDIC was
appointed receiver. 1 Pursuant to section ll(i) of the
Federal Deposit Insurance Act ("FDI Act") as
amended by the Competitive Equality Banking Act of
1987 (12 U.S.C. § 1821(i)), the FDIC established
Bank to acquire the assets and to assume the liabilities
and deposits of the closed banks. The FDIC solicited
offers for the acquisition of Bank from qualified bidders pursuant to sections 1 l(i) and 13(f) of the FDI Act
(12 U.S.C. §§ 1821(i) and 1823(f)). On June 28, 1989,
the FDIC selected Applicant's bid for Bank. On the
same day, the FDIC advised that Applicant had been
selected as the winning bidder, and recommended
expeditious action on this application in order to
permit Bank to operate without the need for liquida-
1. See Appendix.
tion. The OCC has also recommended approval of the
transaction.
In view of this situation and the need for expeditious
action to protect the interest of Bank's depositors, it
has been determined, pursuant to section 3(b) of the
BHC Act (12 U.S.C. § 1842(b)), section 225.14(h) of
the Regulation Y (12 C.F.R. 225.14(h)), and section
262.3(1) of the Board's Rules of Procedure (12 C.F.R.
262.3(1)), to dispense with the notice provisions of the
BHC Act.
Under section 3(d) of the BHC Act (12 U.S.C.
§ 1842(d)), the Douglas Amendment, a bank holding
company generally may not be allowed to acquire
control of any bank located outside of the holding
company's principal state of operations. 2 Applicant,
with approximately $25.2 billion in total assets as of
March 31, 1989, is a bank holding company that
principally operates in Ohio for purposes of the Douglas Amendment. As noted above, Bank is located in
Texas.
Section ll(i)(9) of the FDI Act (12 U.S.C.
§ 1821(i)(9)) specifically provides that a bank holding
company may acquire a bridge bank located in another
state, without regard to the limitations on interstate
bank acquisitions contained in the Douglas Amendment or in any relevant state law, where the bridge
bank has total assets of at least $500,000,000. See also
12 U.S.C. § 1823(f)(4)(A) and (E). Bank, with total
assets of approximately $12 billion, was established by
the FDIC pursuant to section ll(i) of the FDI Act and
will be acquired by Applicant in an assisted transaction. Accordingly, the provisions of section 3(d) of the
BHC Act and of any relevant state law do not bar
approval of the proposed transaction.
In evaluating an application under section 3 of the
BHC Act, the Board is required to consider the
financial and managerial resources and future prospects of the companies involved, the effect of the
proposal on competition, and the convenience and
needs of the communities to be served. Under the
proposal, Applicant would immediately provide Bank
with new management officials, with proven management capability, and Bank would continue to provide a
full range of services to its customers. The agreement
in principle between Applicant and the FDIC will also
recapitalize Bank. With respect to the financial factors, note has been taken of Applicant's existing
financial strength on a consolidated basis.
2. A bank holding company's principal state of banking operations
is the state in which the operations of the bank holding company's
banking subsidiaries were principally conducted on the later of July 1,
1966, or the date on which the company became a bank holding
company.
Legal Developments
Based on these and all of the other facts of record,
including the bid proposal made by Applicant and
accepted by the FDIC, the financial and managerial
resources and future prospects of Applicant, its subsidiaries and Bank are consistent with approval of this
application. The benefits to the convenience and needs
of the communities in Texas of maintaining Bank as a
viable competitor in Texas weigh in favor of approval
of this application.
While Applicant maintains a loan production office
in Dallas, Texas, the amount of Applicant's lending
activities in Texas is not significant. Applicant has no
other banking or nonbanking offices in Texas. Accordingly, consummation of the proposal would not increase the concentration of banking resources or have
any significant adverse effects on competition in Texas
or any other relevant market.
Based on the foregoing and all of the facts of
record, the General Counsel and the Staff Director
of the Division of Banking Supervision and Regulation have determined, acting pursuant to authority
specifically delegated by the Board in this case, that
the application under section 3 of the BHC Act
should be, and hereby is, approved. This action is
limited to approval of the transaction according to
the terms and conditions of Applicant's bid as presented to the Board, and any significant change in
those terms or conditions may require further review
by the Board.
The FDIC has informed the Board that expeditious
action on Applicant's proposal is necessary in order
to permit Applicant to assume control of Bank and
continue to operate Bank as a viable competitor
serving its communities. In light of these and all the
facts of record in this case, the General Counsel and
the Staff Director of the Division of Banking Supervision and Regulation, acting pursuant to authority
delegated by the Board, have determined, in accordance with section 11(b) of the BHC Act, that expeditious action on this application is necessary and
that Applicant may acquire control of Bank through
the management agreement with the FDIC and may
consummate its proposed investment in Bank on or
after the fifth calendar day following the effective
date of this Order. The transaction shall not be
consummated later than three months after the effective date of this Order, unless the period for consummation is extended for good cause by the Board or
the Federal Reserve Bank of Cleveland under delegated authority.
By order, approved pursuant to authority delegated
by the Board, effective June 29, 1989.
WILLIAM W . WILES
Secretary of the Board
575
APPENDIX
The bridge bank has acquired the assets and assumed
the liabilities and deposits of the following bank subsidiaries of MCorp:
MBank Abilene, N.A., Abilene, Texas; MBank
Alamo, N.A., San Antonio, Texas; MBank Austin,
N.A., Austin, Texas; MBank Brenham, N.A., Brenham, Texas; MBank Corsicana, N.A., Corsicana,
Texas; MBank Dallas, N.A., Dallas, Texas; MBank
Denton Co. (Lewisville), N.A., Lewisville, Texas;
MBank Fort Worth, N.A., Forth Worth, Texas;
MBank Greenville, N.A., Greenville, Texas;
MBank Houston, N.A., Houston, Texas; MBank
Jefferson Co. (Port Arthur), N.A., Port Arthur,
Texas; MBank Longview, N.A., Longview, Texas;
MBank Marshall, N.A., Marshall, Texas; MBank
Midcities (Arlington), N.A., Arlington, Texas;
MBank Odessa, N.A., Odessa, Texas; MBank
Orange, N.A., Orange, Texas; MBank Round Rock,
N.A., Round Rock, Texas; MBank Sherman, N.A.,
Sherman, Texas; MBank Wichita Falls, N.A.,
Wichita Falls, Texas; MBank The Woodlands,
N.A., The Woodlands, Texas.
St. Croix Valley Bancshares, Inc.
Bloomington, Minnesota
Order Denying Acquisition of a Bank Holding
Company
St. Croix Valley Bancshares, Inc., Bloomington, Minnesota ("St. Croix"), a bank holding company within
the meaning of the Bank Holding Company Act
("Act"), has applied for the Board's approval under
section 3 of the Act (12 U.S.C. § 1842) to acquire all
of the outstanding voting shares of Stillwater Bancorporation, Inc., Stillwater, Minnesota ("Stillwater"),
and thereby indirectly to acquire Cosmopolitan State
Bank of Stillwater, Stillwater, Minnesota ("Bank"). 1
Notice of the application, affording opportunity for
interested persons to submit comments, has been
published in accordance with section 3(b) of the Act
(54 Federal Register 13,950 (April 6, 1989)). 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.
St. Croix (deposits of $14 million) and Stillwater
(deposits of $45 million) are among the smaller banking
1. Immediately upon acquisition of the outstanding shares of
Stillwater, Applicant will merge Stillwater and Bank with and into St.
Croix and its bank subsidiary, St. Croix Valley Bank, Oak Park
Heights, Minnesota.
576
Federal Reserve Bulletin • August 1989
organizations in Minnesota, each controlling substantially less than one percent of statewide commercial
bank deposits.2 Consummation of this proposal would
not increase significantly the concentration of banking
resources in Minnesota.
St. Croix and Stillwater compete directly in the
Minneapolis-St. Paul banking market.3 St. Croix is the
99th largest commercial bank in this market, controlling less than one percent of total deposits in commercial banks in the market. Stillwater is the 48th largest
commercial banking organization in the market, with
deposits also representing less than one percent of
total deposits in commercial banks. Upon consummation of this proposal, St. Croix would become the 35th
largest commercial banking organization in the market, controlling deposits of $57.1 million and representing .23 percent of total deposits in commercial
banks in the market. In view of the de minimis
increase in concentration and the numerous banking
competitors remaining in the market, the Board has
determined that consummation of this proposal would
not have a significant adverse effect on competition in
the Minneapolis-St. Paul banking market.
In evaluating this application, the Board is required,
under the terms of section 3 of the Act, to consider the
financial resources of the companies and banks involved and the effect of the proposed acquisition on
the future prospects of the bank and applicant organization. The Board previously has stated that a bank
holding company should serve as a source of financial
strength to its subsidiary banks and that the Board
would closely examine the condition of an applicant
and its subsidiaries in each case with this consideration in mind. The Board also has cautioned against
the assumption of substantial debt by a bank holding
company because of concern that a holding company
with a substantial level of debt would not have the
financial flexibility necessary to meet unexpected
problems in its subsidiary banks and could be forced to
place substantial demands on its subsidiary banks to
meet its debt servicing requirements. There are also
other risks associated with leveraging, such as a significant reduction in the parent company's ability to
use the debt and capital markets to aid its subsidiary
bank, should the need arise.4
2. Banking data are as of September, 1988.
3. The Minneapolis-St. Paul banking market is approximated by the
Minneapolis-St. Paul Ranally Metropolitan Area, adjusted to include
Lanesburgh Township in Le Sueur County and all of Scott and Carver
counties, in Minnesota; and Hudson Township in St. Croix County,
Wisconsin.
4. Texstar Financial Corporation, Inc., 72 FEDERAL RESERVE
BULLETIN 333 (1986); Midwest Bancshares, Inc., 71 FEDERAL RESERVE BULLETIN 103 (1985); Cambridge Financial Corporation, 69
FEDERAL RESERVE BULLETIN 7 % ( 1 9 8 3 ) .
The Board notes that debt constitutes a significant
proportion of St. Croix's financing of this proposal.
Upon consummation, St. Croix's debt to outside parties would increase substantially. St. Croix projects
that it will be able to reduce this debt in a manner
consistent with Board policy. In light of the recent
performance of Bank and St. Croix's existing bank
subsidiary, however, St. Croix's earnings projections
appear to be overly optimistic. Upon careful evaluation of more conservative projections based on the
recent performance of these banks, it is the Board's
judgment that, at this time, Applicant would not have
sufficient financial flexibility to service its debt without
unduly straining the resources of the proposed combined organization and Bank. Moreover, based on the
record, it does not appear that Applicant would be able
to serve as a source of strength to the combined
organization or would have the financial resources to
meet any unforeseen problems that may arise at its
bank subsidiaries.
Managerial resources and considerations relating to
the convenience and needs of the community to be
served are consistent with, but are not sufficient to
warrant, approval of the application.
On the basis of all the facts of record, the Board
concludes that the banking considerations involved in
this proposal present adverse factors bearing upon the
financial resources and future prospects of Applicant
and Bank. Such adverse factors are not outweighed by
any pro-competitive effects or by significant benefits
that would better serve the convenience and needs of
the community. Accordingly, it is the Board's judgment that approval of the application would not be in
the public interest and that the application should be,
and hereby is, denied.
By order of the Board of Governors, effective
June 26, 1989.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Kelley, and LaWare. Absent and not
voting: Governor Heller.
JENNIFER J. JOHNSON
Associate Secretary of the Board
Orders Issued Under Section 4 of the Bank
Holding Company Act
First American Corporation
Nashville, Tennessee
Order Approving Application to Provide Community
Development Advisory and Related Services
First American Corporation, Nashville, Tennessee
("First American"), a bank holding company within
Legal Developments
the meaning of the Bank Holding Company Act of
1956 (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), and section 225.23 of the
Board's Regulation Y, 12 C.F.R. 225.23(a)(3), to
acquire First American Community Development Corporation, Nashville, Tennessee ("First American
CDC"); and thereby to engage de novo in providing,
on a nonprofit basis, advisory and related services for
programs designed to promote community welfare.
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been published (54 Federal Register 22,366
(1989)). The time for filing comments has expired, and
the Board has considered the application and all
comments received in light of the public interest
factors set forth in section 4(c)(8) of the BHC Act.
First American, a multi-bank holding company with
consolidated assets of $7.2 billion, is the largest banking organization in Tennessee. 1
The Board has previously recognized the benefit of
allowing bank holding companies to participate in
community development activities based on their
unique role in the community and has adopted a
regulation permitting bank holding companies to make
debt and equity investments in community development corporations or projects.2 The Board has also
determined that the provision of advisory and related
services to programs designed to promote community
development is closely related to banking and permissible for bank holding companies. Shorebank Corporation, 7 4 F E D E R A L R E S E R V E B U L L E T I N 1 4 0 ( 1 9 8 8 )
("Shorebank").
First American's proposal does not differ materially
from the activities approved in Shorebank. First
American CDC will provide technical community
development advisory services to First American's
subsidiary banks as well as to groups involved in
community development issues such as low- and moderate-income housing.3 First American CDC will not
make debt or equity investments in community development projects or organizations. It will, however,
provide expertise in obtaining funding from a variety
1. Data are as of December 31, 1988.
2. See 12 C.F.R. 225.25(b)(6); see also 12 C.F.R. 225.127 ("Bank
holding companies possess a unique combination of financial and
managerial resources making them particularly suited for a meaningful
and substantial role in remedying our social ills").
3. Bank holding companies may, without Board approval, provide
services to their bank subsidiaries under section 4(c)(1)(C) of the BHC
Act, which allows bank holding companies to "[furnish] services to or
[perform] services for such bank holding company or its banking
subsidiary." Applicant has sought approval in this case because
Applicant proposes to provide community development advisory
services to third parties, as well as to its affiliates.
577
of public and private sources, including governmentinsured lending programs.
Based on the foregoing and other considerations
reflected in the record, the Board has determined that
the public benefits associated with consummation of
this proposal can reasonably be expected to outweigh
possible adverse effects, and that the balance of the
public interest factors that the Board is required to
consider under section 4(c)(8) of the BHC Act is
favorable. Accordingly, the Board believes that the
application should be, and hereby is, approved. This
determination is subject to all of the conditions set
forth in Regulation Y, including those in sections
225.4(d) and 225.23(b), and to the Board's authority to
require such modification or termination of the activities of a 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
Atlanta, acting pursuant to delegated authority.
By order of the Board of Governors, effective
June 21, 1989.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Kelley, and LaWare. Absent and not
voting: Governor Heller.
JENNIFER J. JOHNSON
Associate Secretary of the Board
The Fuji Bank, Limited
Tokyo,Japan
Order Approving Application to Provide Certain
Financial Advisory Services
The Fuji Bank, Limited, Tokyo, Japan ("Applicant"),
a registered bank holding company, has applied for the
Board's approval under section 4(c)(8) of the Bank
Holding Company Act ("BHC Act"), 12 U.S.C.
§ 1843(c)(8), and section 225.23(a)(3) of the Board's
Regulation Y, 12 C.F.R. 225.23(a)(3), to acquire a
general partnership interest in Fuji-Wolfensohn International, a de novo New York general partnership
("Company"). James D. Wolfensohn Incorporated
("JDWI"), a Delaware corporation, would hold the
remaining partnership interest in Company.1 JDWI is a
1. Applicant will acquire its interest indirectly through a newly
formed, wholly owned subsidiary.
578
Federal Reserve Bulletin • August 1989
specialized investment bank that provides financial
advice to institutional clients. Company would engage
in the following activities:
(i) acting as financial adviser, either on a retainer or
success fee basis, to provide corporate finance advisory services to institutional customers, including
advice with respect to structuring, financing, and
negotiating domestic and international mergers, acquisitions, joint ventures, divestitures, leveraged
buyouts, capital-raising vehicles, interest rate
swaps, interest rate caps, interest rate collars, currency swaps, similar hedging devices, and other
corporate transactions, and to provide ancillary
services or functions incidental to the foregoing
activities;
(ii) performing feasibility studies for institutional
customers, principally in the context of determining
the financial attractiveness and feasibility of particular corporate transactions;
(iii) providing valuation services in connection with
the foregoing; and
(iv) rendering fairness opinions in connection with
corporate transactions.
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been duly published (54 Federal Register
21,286 (1989)). The time for filing comments has expired, and the Board has considered the application
and all comments received in light of the public
interest factors set forth in section 4(c)(8) of the BHC
Act.
Applicant, with total consolidated assets equivalent
to approximately $334.7 billion, is the third largest
banking organization in the world.2 Applicant owns a
bank subsidiary in New York City and operates
branches in New York and Chicago, agencies in Los
Angeles, Houston, San Francisco, and Atlanta, and
representative offices in Seattle and Miami. Applicant
engages in various activities in the United States under
sections 4(c)(8) and 4(c)(9) of the BHC Act and the
Board's Regulations Y and K (12 C.F.R. Parts 225
and 211, respectively).
The Board has previously determined by Order that
the proposed activities are closely related to banking
and permissible for bank holding companies within the
meaning of section 4(c)(8) of the BHC Act, 3 and the
Board reaffirms its determinations regarding these
activities. The Board must also find that the proposed
acquisition "can reasonably be expected to produce
benefits to the public . . . that outweigh the possible
adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of
interests, or unsound banking practices." 12 U.S.C.
§ 1843(c)(8).
The Board has expressed its concerns regarding
conflicts of interest and related adverse effects that,
absent certain limitations, may be associated with
financial advisory activities. In order to address these
potential adverse effects, Applicant has committed
that:
(i) Company's financial advisory activities will not
encompass the performance of routine tasks or
operations for a client on a daily or continuous
basis;
(ii) Disclosure will be made to each potential client
of Company that Company is an affiliate of Applicant;
(iii) Advice rendered by Company on an explicit fee
basis will be without regard to correspondent balances maintained by a client of Company at Applicant or any of Applicant's depository subsidiaries;
(iv) Company will not make available to Applicant
or any of Applicant's subsidiaries confidential information received from Company's clients, except
with the client's consent; and
(v) Applicant will implement procedures that will
prevent and safeguard against tying products and
services of Company with loans made by Applicant
or any of Applicant's subsidiaries.
Prior decisions of the Board also indicate a concern
that joint ventures could potentially lead to a matrix of
relationships between co-venturers that could break
down the legally mandated separation of banking and
commerce, create the possibility of conflicts of interest
and other adverse effects that the BHC Act was
designed to prevent, or impair or give the appearance
of impairing the ability of the banking organization to
function effectively as an independent and impartial
provider of credit.4 Further, joint ventures must be
carefully analyzed for any possible adverse effects on
2. Asset data are as of September 30, 1988. Banking data are as of
December 31, 1987. Ranking is as of December 31, 1987.
3. See The Nippon Credit Bank, Ltd., 75 FEDERAL RESERVE
BULLETIN 308 (February 13, 1989); Scandinavian Bank Group pic, 75
256 (1988); The Bank of Nova Scotia, 74 FEDERAL RESERVE BULLETIN 249 (1988); Sovran Financial Corporation, 73 FEDERAL RESERVE
BULLETIN 744 (1987); Amsterdam-Rotterdam
Bank N.V., 73 FEDERAL RESERVE BULLETIN 726 (1987); Signet Banking Corporation, 73
FEDERAL RESERVE BULLETIN 59 (1987); Security Pacific
Corporation,
FEDERAL
71 FEDERAL RESERVE BULLETIN 118 ( 1 9 8 5 ) .
Imperial
RESERVE
Bank
BULLETIN
of Commerce,
311
(February
6,
1989);
Canadian
7 4 FEDERAL RESERVE B U L L E T I N 5 7 1
4. See, e.g., Independent
(1988); The Royal Bank of Canada, 74 FEDERAL RESERVE BULLETIN
ERAL RESERVE
3 3 4 ( 1 9 8 8 ) ; SunTrust
Bank,
Banks,
Inc.,
7 4 FEDERAL RESERVE B U L L E T I N
N.V.,
BULLETIN
Bankers Financial Corporation,
664
(1986);
and
72 FED-
Amsterdam-Rotterdam
7 0 FEDERAL RESERVE BULLETIN 8 3 5 (1984).
Legal Developments
competition and on the financial condition of the
banking organization involved in the proposal.
JDWI has stated that it engages only in activities
that are permissible for a bank holding company.
Furthermore, Applicant has committed to notify the
Board in the event JDWI determines to engage in any
securities business that is impermissible for a state
member bank under the Glass-Steagall Act, and to
seek Board approval of Applicant's retention of its
interest in Company should JDWI's securities activities be inconsistent with the Board's Order approving
this application.
With regard to competitive issues, Applicant and
JDWI do not currently compete with each other in any
relevant market. Accordingly, consummation of the
proposed transaction would not eliminate any existing
competition between Applicant and JDWI.
In every case involving a nonbanking acquisition by
a bank holding company under section 4 of the BHC
Act, the Board considers the financial condition and
resources of the applicant and its subsidiaries and the
effect of the transaction on these resources.5 In accordance with the principles of national treatment and
competitive equity, the Board has stated that it expects a foreign bank to meet the same general standards of financial strength as domestic bank holding
companies and to be able to serve as a source of
strength to its United States banking operations.6 In
considering applications of foreign banking organizations, the Board has noted that foreign banks operate
outside the United States in accordance with different
regulatory and supervisory requirements, accounting
principles, asset quality standards, and banking practices and traditions, and that these differences have
made it difficult to compare the capital positions of
domestic and foreign banks. The Board, however,
recently adopted a proposal to supplement its consideration of capital adequacy with a risk-based system
that is simultaneously being proposed by the member
countries of the Basle Committee on Banking Regulations and Supervisory Practices and the other domes-
5 . 12 C . F . R . 2 2 5 . 2 4 ; The Fuji Bank,
B U L L E T I N 9 4 ( 1 9 8 9 ) ; Bayerische
Limited,
Vereinsbank
7 5 F E D E R A L RESERVE
AG,
73 FEDERAL RE-
SERVE B U L L E T I N 1 5 5 , 1 5 6 ( 1 9 8 7 ) .
6. See Toyo Trust and Banking Co., Ltd., 14 FEDERAL RESERVE
BULLETIN
623
(1988);
Taiyo
Kobe
BULLETIN 621 (1988); The Long-Term
Bank,
74
7 4 F E D E R A L R E S E R V E B U L L E T I N 5 7 3 ( 1 9 8 8 ) ; The
ited,
FEDERAL
RESERVE
Credit Bank of Japan,
Sanwa
Limited,
Bank,
7 4 F E D E R A L R E S E R V E B U L L E T I N 5 7 8 ( 1 9 8 8 ) ; Sumitomo
Banking
Co.,
Ljubljanska
Ltd.,
73
FEDERAL RESERVE BULLETIN 7 4 9
Banka-Associated
Bank,
Lim-
Trust
7 2 F E D E R A L RESERVE B U L L E -
TIN 489 (1986); The Mitsubishi
Trust and Banking Corporation,
F E D E R A L RESERVE B U L L E T I N
256 (1986);
Japan,
Ltd.,
ishi Bank,
The
Industrial
7 2 F E D E R A L R E S E R V E B U L L E T I N 7 1 ( 1 9 8 6 ) ; The
Limited,
&
(1987);
Bank
72
of
Mitsub-
7 0 FEDERAL RESERVE BULLETIN 5 1 8 (1984).
tic federal banking agencies. 7 The Japanese Ministry
of Finance in April of last year acted to implement for
Japanese banking organizations the risk-based capital
framework developed by the Basle Committee. The
Board considers the Basle Committee proposal an
important step toward a more consistent and equitable
international standard for assessing capital adequacy.
In this case, the primary capital ratio of Applicant,
as publicly reported, is well below the minimurh level
specified in the Board's Capital Adequacy Guidelines.
After making adjustments to reflect Japanese banking
and accounting practices, however, including consideration of a portion of the unrealized appreciation in
Applicant's portfolio of equity securities consistent
with the principles in the Basle capital framework,
Applicant's capital ratio meets United States standards.
The Board also has considered several additional
factors that mitigate its concern in this case. The
Board notes that the application involves nonbanking
activities that require a small commitment of capital
and that Applicant is in compliance with the capital
and other financial requirements of Japanese banking
organizations. In addition, the Board has considered
as favorable factors that, in anticipation of implementation of the Basle Committee risk-based capital
framework, Applicant has, through the issuance of
common stock and retention of earnings, increased its
equity capital by almost $1.4 billion since October
1988, and that Applicant's capital improvement program is consistent with meeting the standards in the
Basle Committee capital framework for 1990 and 1992.
Based on these and other facts of record, the Board
concludes that the financial considerations are consistent with approval of the application.
Consummation of Applicant's proposal would provide increased convenience to Company's customers
and gains in efficiency. In addition, the Board expects
that the de novo entry of Applicant into the market for
these services would increase the level of competition
among providers of these services. Accordingly, the
Board has determined that the performance of the
proposed activities by Company can reasonably be
expected to produce benefits to the public.
For these reasons, and in reliance on the commitments offered in this case, the Board believes that the
proposal is not likely to result in decreased or unfair
competition, conflicts of interests, unsound banking
practices, concentration of resources, or other adverse
effects. Based on the foregoing and other facts of
record, and subject to the commitments made by
Applicant and Company, the Board has determined
See
also Policy Statement on Supervision and Regulation of ForeignBased Holding Companies, Federal Reserve Regulatory Service
11 4 - 8 3 5 ( 1 9 7 9 ) .
579
7. 54 Federal Register
4186 (1989).
580
Federal Reserve Bulletin • August 1989
that the balance of the public interest factors that the
Board 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 all of the conditions set forth in the Board's Regulation Y, including those in sections 225.4(d) and
225.23(b), and to the Board's authority to require
modification or termination of the activities of the
holding company or any of its subsidiaries as the
Board finds necessary to 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 23, 1989.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Kelley, and LaWare. Absent and not
voting: Governor Heller.
WILLIAM W . WILES
Secretary of the Board
Societe Generate
Paris, France
Order Approving Application to Act as a Specialist
in Options on Foreign Exchange
Societe Generate, Paris, France, a foreign bank subject to the Bank Holding Company Act ("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), and
section 225.21(a) of the Board's Regulation Y,
12 C. F. R. 225.21 (a), for approval for its wholly owned
subsidiary, Societe Generate Options-North America,
Inc., Philadelphia, Pennsylvania ("Company"), to act
as the specialist in Deutsche mark options on the
Philadelphia Stock Exchange ("the Exchange").
Company would be the sole specialist in Deutsche
mark options designated by the Exchange. As a specialist, Company would act as dealer and market
maker in such options to assist in the maintenance of a
fair and orderly market on the Exchange.
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been duly published (53 Federal Register
50,096 (1988)). The time for filing comments has expired, and the Board has considered the application in
light of the public interest factors set forth in section
4(c)(8) of the BHC Act.
Applicant, with total consolidated assets equivalent
to approximately $155 billion, is the 21st largest banking organization in the world.1 In the United States,
Societe Generate operates three branches, one
agency, and one Edge Act corporation.
In order to approve an application submitted pursuant to section 4(c)(8) of the BHC Act, the Board is
required to determine that the proposed activity is "so
closely related to banking as to be a proper incident
thereto." 12 U.S.C. § 1843(c)(8). In considering
whether a proposed activity would be a proper incident to banking, the Board is required to determine
that the performance of the proposed activity can
reasonably be expected to produce benefits to the
public that outweigh possible adverse effects. Id.
A. Closely Related to Banking Analysis
Based on guidelines established in the National Courier case, a particular activity may be found to meet
the "closely related to banking" test if it is demonstrated that banks generally have in fact provided the
proposed activity; that banks generally provide services that are operationally or functionally so similar
to the proposed activity as to equip them particularly
well to provide the proposed activity; or that banks
generally provide services that are so integrally related
to the proposed activity as to require their provision in
a specialized form.2
Based on the facts of record, the Board finds that the
activity of engaging as a specialist in foreign currency
options on the Exchange is closely related to banking
for purposes of section 4(c)(8) because banks provide
services that are so operationally and functionally
similar to the proposed activities that banking organizations are particularly well equipped to provide them.
The Board believes that banks possess substantial
experience in dealing in foreign exchange and related
services that are similar to the functions involved in
the specialist activity.3
The Board has previously recognized that foreign
exchange activities have traditionally been conducted
1. Banking data are as of June 30, 1988. Ranking is as of December
31, 1987.
2. Nat'l Courier Ass'n v. Board of Governors, 516 F.2d 1229, 1237
(D.C. Cir. 1975). The Board may also consider any other factor that
demonstrates a reasonable or close connection or relationship of the
activity to banking. 49 Federal Register 794, 806 (1984); Securities
Industry Ass'n v. Board of Governors, 104 S. Ct. 3003, 3005-06 n.5
(1984).
3. The Board notes that in 1984 the Comptroller of the Currency
authorized a national bank to engage in the same activity that Societe
Generale now proposes through a joint venture with an existing
options trader on the Exchange. Letter, dated January 11, 1984, from
Michael Patriarca, Deputy Comptroller for Multinational Banking.
The Comptroller has also approved a proposal by a national bank to
function as the Exchange's specialist on Canadian dollar options.
Legal Developments
by banks and would be appropriate activities under the
BHC Act. 4 Banks are major participants in all aspects
of the foreign exchange markets and also act as market
makers in various currencies. Their activities include
trading for their own account as well as for customers
in virtually all foreign exchange markets and instruments, including trading foreign currency options on
regulated exchanges as proposed here.
The Board further notes that banks not only take
foreign exchange positions for their own account, but
also act as market makers in the interbank market,
continually offering both bid and offer prices on the
currencies and contracts they trade. Through their
participation in the interbank market for foreign currency options, banks have developed experience in
dealing, market making and risk management which
are essential elements of the proposed activities.
B. Balance of Public Benefits and Adverse
Effects
In order to approve this application, the Board is
required to determine that the performance of the
proposed activities by Societe Generale "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." 12 U.S.C. § 1843(c)(8).
Consummation of the proposal can reasonably be
expected to result in public benefits that outweigh
possible adverse effects. The proposed activities
would facilitate the development of the foreign exchange options market by providing increased market
liquidity and enhanced opportunities for financial institutions to hedge foreign exchange risk. Consummation of the proposal is also likely to provide gains in
efficiency through linkage of the interbank foreign
exchange market with the market for exchange-traded
options on foreign exchange.
With regard to the adverse effects that might stem
from the proposal, the Board notes that the activity of
acting as a specialist involves the financial risk of
adverse rate fluctuations. The specialist is required to
deal for its own account as necessary to maintain a
"fair and orderly market." Under the rules of the
Exchange, the specialist is expected to deal at all
times, and therefore would be in the market at times
4. See Hongkong and Shanghai Banking Corporation, 75 FEDERAL
RESERVE BULLETIN 217 (1989) (trading foreign exchange forwards,
futures, options and options on futures for its own account for other
than hedging purposes to a limited extent); and The Nippon Credit
Bank,
Ltd.,
when other dealers might refrain from activity because
potential profits do not appear likely.
In this case, the Board believes that financial risk is
sufficiently minimized by several considerations.
First, the rules of the Exchange permit the specialist to
set the price and quantity that it will buy and sell in
order to minimize its risk in an adverse or volatile
market. Second, the specialist is generally prohibited
by the Exchange from "speculating." Third, Societe
Generale has committed not to write unhedged options
and appears to have developed substantial experience
with hedging from its existing foreign currency and
options business. In this regard, Company will institute a computerized options risk management system
that will include an ongoing risk exposure and hedging
requirement analysis; "what i f ' studies for different
market scenarios; continuous review of Company's
compliance with its own internal limits; and backoffice surveillance of the firm's floor trading activities.
Moreover, the record also shows that Societe Generale has developed extensive experience in trading
foreign currency options on the over-the-counter market and on exchanges.
The Board also notes that Company will be a
registered broker-dealer with the SEC and hence subject to the net capital rule. Societe Generale has
indicated that Company's capital will also be greater
than the capital devoted to the activities by the current
specialists. In this regard, the Board expects that
Company will maintain at all times capital adequate to
support its activity and cover reasonably expected
expenses and losses.
In reaching its conclusions in this case, the Board
has considered its decision in Compagnie Financiere
de Suez and Banque Indosuez ("Banque Indosuez"),
denying a proposal to act as a specialist in French
franc options on the Exchange.5 The Board believes
that the facts and circumstances in this case are
different in several significant respects from the situation presented in Banque Indosuez. In particular, this
proposal does not raise the issues relating to potential
conflicts of interest and risk raised in Banque Indosuez. Moreover, the markets for Deutsche marks
and Deutsche mark options are considerably larger
and more liquid than they were for French francs at
that time. The market for foreign currency options has
also broadened significantly, particularly on the Exchange, and the involvement of commercial banks in
that market has become more widespread.
Based upon the foregoing and other considerations
reflected in the record, and subject to the commitments made by Societe Generale, the Board has de-
7 5 FEDERAL RESERVE BULLETIN 3 0 8 (1989) ( e n g a g i n g in
foreign exchange spot transactions).
581
5 . 7 2 F E D E R A L R E S E R V E B U L L E T I N 141 ( 1 9 8 6 ) .
582
Federal Reserve Bulletin • August 1989
termined that the public benefits associated with this
proposal can reasonably be expected to outweigh
possible adverse effects, and that the balance of the
public interest factors that the Board is required to
consider under section 4(c)(8) of the BHC Act is
favorable. Accordingly, the application is hereby approved. This determination is further subject to all of
the conditions set forth in the Board's Regulation Y,
including those in sections 225.4(d) and 225.23(b), and
to the Board's authority to require modification or
termination of the activities of the holding company or
any of its subsidiaries as the Board finds necessary to
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 22, 1989.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Kelley, and LaWare. Absent and not
voting: Governor Heller.
JENNIFER J. JOHNSON
Associate Secretary of the Board
The Sumitomo Bank, Limited
Osaka, Japan
Order Approving Application to Act as a Dealer,
Broker, and Advisor With Respect to Interest Rate
and Currency Swaps and Related Transactions
The Sumitomo Bank, Limited, Osaka, Japan ("Sumitomo"), a bank holding company within the meaning
of the Bank Holding Company Act of 1956 ("BHC
Act"), has applied pursuant to section 4(c)(8) of the
BHC Act (12 U.S.C. § 1843(c)(8)) and section
225.23(a) of the Board's Regulation Y (12 C.F.R.
225.23(a)) for its wholly owned subsidiary, Sumitomo
Bank Capital Markets, Inc., New York, New York
("SBCM"), to engage de novo in the following activities:
1. intermediating in the international swap markets by
acting as originator and principal in interest rate swap
and currency swap transactions;
2. acting as an originator and principal with respect to
certain risk-management products such as caps,
floors, and collars, as well as options on swaps, caps,
floors, and collars ("swap derivative products");
3. acting as a broker or agent with respect to the
foregoing transactions and instruments; and
4. acting as an advisor to institutional customers
regarding financial strategies involving interest rate
and currency swaps and swap derivative products.
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been duly published (54 Federal Register
8395 (1989)). The time for filing comments has expired,
and the Board has considered the application and all
comments received in light of the public interest
factors set forth in section 4(c)(8) of the BHC Act.
Sumitomo, with approximately $366.9 billion in total
consolidated assets as of September 30, 1988, is the
second largest banking organization in the world.
Sumitomo owns Sumitomo Bank of California, Los
Angeles, California, which held total assets of approximately $3.7 billion as of December 31, 1988. In
addition, Sumitomo owns several agencies and
branches in the United States. The operations of
SBCM will be completely separate and independent of
Sumitomo's U.S. banking operations.
The Board has permitted bank holding companies
under section 4(c)(8) of the BHC Act to provide advice
in connection with interest rate and currency swaps,
interest rate caps, and similar transactions.1 However,
the Board has not previously approved the remaining
proposed activities under section 4(c)(8) of the BHC
Act. 2
In order to approve an application submitted pursuant to section 4(c)(8) of the BHC Act, the Board is
required to determine that the proposed activity is "so
closely related to banking as to be a proper incident
thereto." 12 U.S.C. § 1843(c)(8). In considering
whether a proposed new activity would be a proper
1 . Signet
Banking
( 1 9 8 7 ) ; The Nippon
Corporation,
Credit
Bank,
7 3 FEDERAL RESERVE BULLETIN 5 9
Ltd.,
7 5 FEDERAL RESERVE BULLE-
TIN 3 0 8 ( 1 9 8 9 ) .
2. The basic structure of an interest rate swap is an exchange
between two counterparties of the different payment streams that
arise out of fixed-rate and floating-rate interest payment obligations.
The exchange is made in the same currency and calculated by
reference to a mutually agreed upon "notional" principal amount.
A currency swap is an exchange between two counterparties of a
fixed-rate interest obligation in one currency for a fixed-rate interest
obligation in another currency. Currency swaps may involve either an
initial physical exchange of principal at an agreed-upon current
exchange rate or an exchange of interest payments in different
currencies on an agreed notional amount with no actual transfer of
principal. In either case, over the course of the swap, there will be a
periodic exchange of fixed-rate interest payments. Upon maturity of
the swap, if there was a physical exchange of currencies at the outset,
there would be a re-exchange of the original principal amounts.
An intermediary in the swap markets is a party who is willing to step
between the two parties to a swap agreement and act as the principal
counterparty with each of the other participants, thus taking on the
credit risk of each of the participants. Upon entering into a swap with
one counterparty, the intermediary enters into an equivalent and
offsetting swap with another counterparty.
An agent or broker in the swap markets locates, for a fee, a suitable
counterparty for a party seeking to enter into a swap agreement.
Legal Developments
incident to banking, the Board is required to determine
that the performance of the proposed activity can
reasonably be expected to produce benefits to the
public that outweigh possible adverse effects. Id.
A. Closely Related to Banking Analysis
Based on guidelines established by the federal courts,
an activity may be found to be closely related to
banking if it is demonstrated that banks generally
have, in fact, provided the proposed activity; that
banks generally provide services that are operationally
or functionally so similar to the proposed activity as to
equip them particularly well to provide the proposed
activity; or that banks generally provide services that
are so integrally related to the proposed activity as to
require their provision in a specialized form.3
In this case, the record shows that banks do conduct
the proposed intermediation activities. Major U.S.
money-center banks are among the larger intermediaries in the international swap market.4 In addition, for
several years banks have participated in the swap
market as end-users, entering into swaps and purchasing swap derivative products in order to hedge other
business risks or to match assets and liabilities.5
Accordingly, the Board concludes that the proposed
activities of intermediating in the international swap
markets by acting as originator and principal in interest rate swap and currency swap transactions and with
respect to swap derivative products is closely related
to banking for purposes of section 4(c)(8) of the BHC Act.
In addition, the Board finds that acting as agent or
broker with respect to interest rate and currency
swaps and swap derivative products is closely related
to banking for purposes of section 4(c)(8), because
banks provide services that are so operationally and
functionally similar to the proposed activities that
banking organizations are particularly well equipped
to provide them. The Board has previously determined
that acting as a broker with respect to foreign exchange forward transactions is closely related to banking, finding that banks historically have been engaged
in the provision of assistance with respect to foreign
3. Nat'l Courier Ass'n v. Board of Governors, 516 F.2d 1229, 1237
(D.C. Cir. 1975). The Board may also consider any other factor that an
applicant may advance to demonstrate a reasonable or close connection or relationship to banking. 49 Federal Register 794, 806 (1984);
Securities Industry Ass'n v. Board of Governors, 468 U.S. 207,210-11
n.5 (1984).
4. Bank for International Settlements, Recent Innovations in International Banking, p. 45 (April 1986).
5. The Board recognized the involvement of U.S. banks in the swap
market in its recently issued Risk-Based Capital Guidelines by expressly including interest rate and currency swaps and swap derivative products in its list of types of interest rate and foreign exchange
rate contracts for which credit equivalent amounts were computed. 54
Federal Register 4205 (1989).
583
exchange.6 Currency swaps are very similar to foreign
exchange forward transactions, the primary difference
being the exchange of interest streams in connection
with currency swaps. Interest rate swaps are, in turn,
very similar to currency swaps in that they both involve
agreements to exchange different payment streams that
arise out of a prescribed principal amount.7
B. Balance of Public Benefits and Adverse
Effects
In order to approve this application, the Board is also
required to determine that the performance of the
proposed activities by Sumitomo "can reasonably be
expected to produce benefits to the public, such as
greater convenience, increased competition, or gains
in efficiency, that outweigh possible adverse effects,
such as undue concentration of resources, decreased
or unfair competition, conflicts of interests, or unsound banking practices." 12 U.S.C. § 1843(c)(8).
Consummation of the proposal may reasonably be
expected to result in significant public benefits in the
form of increased competition in the swap market and
gains in efficiency and innovation in the provision of
these services. In addition, the entry of SBCM into
this market will add a significant amount of additional
capital to the swap market as a whole. As one of the
larger banks in the world, Sumitomo, through SBCM,
will facilitate swap transactions among counterparties
that are not equipped to evaluate the credit of potential
counterparties and hence will increase the accessibility of swap transactions to additional end-users.
SBCM appears to be capable of managing the risks
associated with the proposed activities. Sumitomo,
which has extensive experience in lending and financing services worldwide, has undertaken to provide credit screening for all potential counterparties of
SBCM through its credit desk services in Tokyo. In
appropriate cases, SBCM will obtain a letter of credit
on behalf of or collateral from a counterparty. In
addition, SBCM will establish separate credit risk
exposure limits for each swap counterparty. SBCM
will monitor this exposure on an ongoing basis, in the
aggregate and with respect to each counterparty. Senior management will be periodically informed of the
potential risk to which SBCM is exposed.
In order to manage the risk associated with adverse
changes in interest rates ("price risk"), SBCM will
match all the swaps and related instruments in which it
is a principal and will hedge any unmatched positions
6. See, e.g.,
Hongkong
and Shanghai
Banking
Corporation,
69
FEDERAL RESERVE BULLETIN 2 2 1 ( 1 9 8 3 ) .
7. Similarly, caps, floors, and collars involve agreements to pay an
amount by reference to a prescribed interest rate.
584
Federal Reserve Bulletin • August 1989
pending a suitable match. SBCM will not enter into
unmatched or unhedged swaps for speculative purposes. SBCM's management will set absolute limits on
the level of risk to which its swap portfolio may be
exposed. SBCM's exposure to price risk will be monitored by both business management and internal
auditing personnel to guarantee compliance with the
risk limitations imposed by management. Auditing
personnel will report directly to senior management to
ensure that any violations of portfolio risk limitations
are reported and corrected.
With respect to the risk associated with the potential
for differences between the floating rate indices on two
matched or hedged swaps ("basis risk"), SBCM's
management will impose absolute limits upon the
aggregate basis risk to which SBCM's swaps portfolio
may be exposed. If the level of risk threatens to
exceed the limits at any time, SBCM will actively seek
to enter into matching transactions for its unmatched
positions. SBCM's internal auditing staff, together
with management, will monitor compliance with the
management-imposed basis risk limits.8
In addition, SBCM intends to minimize operations
risk through the recruitment and training of an experienced back-office support staff and the use of a
separate operational and data processing structure for
processing swap and hedging transactions.
In order to minimize any possible conflicts of interest between SBCM's role as a principal or broker in
swap transactions and its role as advisor to potential
counterparties, SBCM will disclose to each customer
the fact that SBCM may have an interest as a counterparty principal or broker in the course of action
ultimately chosen by the customer. Also, in any case
in which SBCM has an interest in a specific transaction
as an intermediary or principal, SBCM will advise its
customer of that fact before recommending participation in that transaction. In addition, SBCM's advisory
services will be offered only to sophisticated customers who would be unlikely to place undue reliance on
investment advice received and better able to detect
investment advice motivated by self-interest.
In every case involving a nonbanking acquisition by
a bank holding company under section 4 of the BHC
Act, the Board considers the financial condition and
resources of the applicant and its subsidiaries and the
effect of the transaction on these resources.9 In ac-
cordance with the principles of national treatment and
competitive equity, the Board has stated that it expects a foreign bank to meet the same general standards of financial strength as domestic bank holding
companies and to be able to serve as a source of
strength to its United States banking operations.10 In
considering applications of foreign banking organizations, the Board has noted that foreign banks operate
outside the United States in accordance with different
regulatory and supervisory requirements, accounting
principles, asset quality standards, and banking practices and traditions, and that these differences have
made it difficult to compare the capital positions of
domestic and foreign banks. The Board, however,
recently adopted a proposal to supplement its consideration of capital adequacy with a risk-based system
that is simultaneously being proposed by the member
countries of the Basle Committee on Banking Regulations and Supervisory Practices and the other domestic federal banking agencies.11 The Japanese Ministry
of Finance in April of last year acted to implement for
Japanese banking organizations the risk-based capital
framework developed by the Basle Committee. The
Board considers the Basle Committee proposal an
important step toward a more consistent and equitable
international standard for assessing capital adequacy.
In this case, the primary capital ratio of Sumitomo,
as publicly reported, is well below the 5.5 percent
minimum level specified in the Board's Capital Adequacy Guidelines. After making adjustments to reflect
Japanese banking and accounting practices, however,
including consideration of a portion of the unrealized
appreciation in Sumitomo's portfolio of equity securities consistent with the principles in the Basle capital
framework, Sumitomo's capital ratio meets United
States standards.
The Board also has considered additional factors
that mitigate its concern in this case. The Board notes
that Sumitomo is in compliance with the capital and
other financial requirements of Japanese banking organizations. In addition, the Board notes that Sumitomo
currently exceeds the minimum requirements established
by the Basle Committee capital framework for 1992.
10. See Toyo Trust and Banking Co., Ltd., 74 FEDERAL RESERVE
BULLETIN 623 (1988); Taiyo Kobe Bank, 74 FEDERAL RESERVE
BULLETIN 621 (1988); The Long-Term Credit Bank of Japan, Limited,
7 4 FEDERAL RESERVE BULLETIN 5 7 3 ( 1 9 8 8 ) ; The Sanwa
Bank,
ited, 74 FEDERAL RESERVE BULLETIN 578 (1988); Sumitomo
Banting
8. In addition to rate and basis risk, the value of a swap option is
subject to market expectations of the future direction and rate of
change in interest rates, or volatility risk. SBCM's management will
impose absolute limits on the level of volatility risk to which SBCM's
swap portfolio may be exposed.
9. 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 FEDERAL RESERVE
BULLETIN 94 (1989); Bayerische Vereinsbank AG, 73 FEDERAL RESERVE BULLETIN 1 5 5 , 1 5 6 ( 1 9 8 7 ) .
Co.,
Ltd.,
ska Banka-Associated
7 3 FEDERAL RESERVE BULLETIN 7 4 9 ( 1 9 8 7 ) ;
Bank,
Lim-
Trust &
Ljubljan-
7 2 FEDERAL RESERVE BULLETIN 4 8 9 ( 1 9 8 6 ) ;
The Mitsubishi Trust and Banking Corporation, 72 FEDERAL RESERVE
BULLETIN 256 (1986); The Industrial Bank of Japan, Ltd., 72 FEDERAL
RESERVE BULLETIN 71 (1986); The Mitsubishi Bank, Limited, 70 FEDERAL
RESERVE BULLETIN 518 (1984). See also Policy Statement on Supervision
and Regulation of Foreign-Based Holding Companies, Federal Reserve
Regulatory Service H 4-835 (1979).
11. 54 Federal Register 4186 (1989).
Legal Developments
Based on these and other facts of record, the Board
concludes that the financial considerations are consistent with approval of the application.
Based on the foregoing and other facts of record,
and subject to the commitments made by Sumitomo,
the Board has determined that the public benefits
associated with this proposal can reasonably be expected to outweigh possibly adverse effects, and that
the balance of the public interest factors that the Board
is required to consider under section 4(c)(8) of the
BHC Act is favorable. Accordingly, the application is
hereby approved. This determination is further subject
to all of the conditions set forth in the Board's Regulation Y, including those in sections 225.4(d) and
225.23(b), and to the Board's authority to require
modification or termination of the activities of the
holding company or any of its subsidiaries as the
585
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 San
Francisco, pursuant to delegated authority.
By order of the Board of Governors, effective
June 26, 1989.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Kelley, and La Ware. Absent and not
voting: Governor Heller.
JENNIFER J. JOHNSON
Associate
APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY
Secretary of the Board
ACT
By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon
request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 3
Applicant
Barnett Banks, Inc.,
Jacksonville, Florida
FirstBank Holding Company of
Colorado,
Lakewood, Colorado
BY FEDERAL RESERVE
Effective
date
Bank(s)
Investors Trust Financial Corporation,
Duluth, Georgia
FirstBank of South Boulder, N.A.,
Boulder, Colorado
FirstBank of Beaver Creek, N.A.,
unincorporated Eagle County,
Colorado
June 9, 1989
June 6, 1989
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
Artemisia Holdings, Inc.,
Stamford, Connecticut
Bank(s)
Connecticut Bancorp,
Norwalk, Connecticut
Reserve
Bank
New York
Effective
date
June 7, 1989
586
Federal Reserve Bulletin • August 1989
Section 3—Continued
Applicant
Bank of Bolivar Employee Stock
Ownership Plan & Trust,
Bolivar, Tennessee
Belle Fourche Bancshares, Inc.,
Belle Fourche, South Dakota
Blairstown Bancorp, Inc.,
Blairstown, Iowa
BMR Financial Group, Inc.,
Atlanta, Georgia
Coal City Corporation,
Coal City, Illinois
Commonwealth Trust Bancorp,
Inc.,
Butler, Kentucky
Continental Bancorporation,
Gloucester Township,
Laurel Springs, New Jersey
Easton Bancshares, Inc.,
Easton, Illinois
Fannin Bancshares, Inc.,
Blue Ridge, Georgia
Farmington Bancorp, Inc.,
Peoria, Illinois
First Clay County Banc
Corporation,
Clay, West Virginia
First McKinley Corporation,
Denver, Colorado
First Wachovia Corporation,
Winston-Salem, North Carolina
FNC Acquisition Company,
Pikeville, Kentucky
FSB Bancorp, Inc.,
Breckenridge, Michigan
Fulton Bancshares Corporation,
McConnellsburg, Pennsylvania
Golden Isles Financial Holdings,
Inc.,
Brunswick, Georgia
Heritage Bancshares, Inc.,
Fort Myers, Florida
Hershare Financial Corporation,
Herscher, Illinois
HNB Bancorp, Inc.,
Hannibal, Missouri
Bank(s)
Community Financial Services,
Inc.,
Bolivar, Tennessee
Buffalo Bancorporation, Inc.,
Buffalo, South Dakota
Benton County State Bank,
Blairstown, Iowa
Tucker State Bank,
Winter Garden, Florida
Allied Banc Corporation,
Coal City, Illinois
The Farmers Bank,
Butler, Kentucky
Reserve
Bank
Effective
date
St. Louis
June 8, 1989
Minneapolis
June 16, 1989
Chicago
June 20, 1989
Atlanta
June 6, 1989
Chicago
June 19, 1989
Cleveland
May 30, 1989
Continental Bank of New Jersey,
Gloucester Township,
Laurel Springs, New Jersey
Community Bank of Easton,
Easton, Illinois
Peoples Bank of Fannin County,
Blue Ridge, Georgia
Bank of Farmington,
Farmington, Illinois
Clay County Bank,
Clay, West Virginia
Philadephia
May 31, 1989
Chicago
June 13, 1989
Atlanta
June 20, 1989
Chicago
June 6, 1989
Richmond
June 13, 1989
First National Bank in Evanston,
Evanston, Wyoming
First Bank and Trust Company,
Fayetteville, Georgia
First National Company,
Pikeville, Kentucky
Farmers State Bank of
Breckenridge,
Breckenridge, Michigan
Fulton County National Bank
and Trust Company,
McConnellsburg, Pennsylvania
The First Bank of Brunswick,
Brunswick, Georgia
Kansas City
May 31, 1989
Richmond
June 6, 1989
Richmond
May 31, 1989
Chicago
May 30, 1989
Philadelphia
June 6, 1989
Atlanta
June 8, 1989
Atlanta
June 16, 1989
Chicago
June 6, 1989
St. Louis
May 30, 1989
Heritage National Bank,
Fort Myers, Florida
State Bank of Herscher,
Herscher, Illinois
The Hannibal National Bank,
Hannibal, Missouri
Legal Developments
Section 3—Continued
Applicant
Independent Southern
Bancshares, Inc.,
Brownsville, Tennessee
JDOB, Incorporated,
Naples, Florida
Key Centurion Bancshares, Inc.,
Charleston, West Virginia
Lexington Bancshares, Inc.,
Lexington, Kentucky
MidSouth Bancshares, Inc.,
Millington, Tennessee
Morris State Bancshares, Inc.,
Dublin, Georgia
National Penn Bancshares, Inc.,
Boyertown, Pennsylvania
NBM Bancorp, Inc.,
Mendota, Illinois
NorCentral Bancshares, Inc.,
Portis, Kansas
Orono Financial, Inc.,
Navarre, Minnesota
People's Savings Financial Corp.,
New Britain, Connecticut
Smoky Mountain Bancorp, Inc.,
Gatlinburg, Tennessee
State Bancshares, Inc.,
Fargo, North Dakota
The Sumitomo Bank, Limited,
Osaka, Japan
TCB Bancshares, Inc.,
Crawford, Georgia
Texas Bancorporation, Inc.,
Odessa, Texas
WestOne Bancorp,
Boise, Idaho
Bank(s)
Reserve
Bank
Effective
date
MidSouth Bancshares, Inc.,
Millington, Tennessee
St. Louis
June 9, 1989
First State Bank of New
Germany,
New Germany, Minnesota
First National Company,
Pikeville, Kentucky
Cardinal Bancshares, Inc.,
Lexington, Kentucky
Tennessee Bank and Trust,
Millington, Tennessee
The Morris State Bank,
Dublin, Georgia
Pennsylvania State Bank,
Lemonye, Pennsylvania
The National Bank of Mendota,
Mendota, Illinois
I.V. Bancorp, Inc.,
Peru, Illinois
The First State Bank of Portis,
Portis, Kansas
Wayzata Bank of the Lakes,
N.A.,
Wayzata, Minnesota
The People's Savings Bank of
New Britain,
New Britain, Connecticut
The First National Bank of
Gatlinburg,
Gatlinburg, Tennessee
State Bank of Fargo,
Fargo, North Dakota
First State Bank of West Fargo,
West Fargo, North Dakota
CPB Inc.,
Honolulu, Hawaii
The Commercial Bank,
Crawford, Georgia
Texas Bank,
Odessa, Texas
First Security Bancorp,
Tacoma, Washington
Minneapolis
May 26, 1989
Richmond
May 31, 1989
Cleveland
June 1, 1989
St. Louis
June 9, 1989
Atlanta
May 31, 1989
Philadelphia
May 30, 1989
Chicago
June 16, 1989
Kansas City
May 25, 1989
Minneapolis
June 16, 1989
Boston
June 9, 1989
Atlanta
June 19, 1989
Minneapolis
June 2, 1989
San Francisco
June 12, 1989
Atlanta
June 14, 1989
Dallas
May 25, 1989
San Francisco
June 5, 1989
587
588
Federal Reserve Bulletin • August 1989
Section 4
Applicant
First United Bancorporation,
Anderson, South Carolina
MNC Financial, Inc.,
Baltimore, Maryland
Norwest Corporation,
Minneapolis, Minnesota
PNC Financial Corp.,
Pittsburgh, Pennsylvania
Wells Fargo & Company,
San Francisco, California
Nonbanking Activity/
Company
Universal Loans, Inc.,
Sumter, South Carolina
Prime Rate Premium Finance
Corporation,
Florence, South Carolina
Prime Rate Systems, Inc.,
Florence, South Carolina
Financial Investment Associates
Incorporated,
Northfield, Illinois
Money Station, Inc.,
Columbus, Ohio
Wells Fargo Mortgage and
Equity Trust,
San Francisco, California
APPLICATIONS APPROVED UNDER BANK MERGER
Reserve
Bank
Effective
date
Richmond
June 16, 1989
Richmond
May 26, 1989
Minneapolis
June 9, 1989
Cleveland
May 26, 1989
San Francisco
June 19, 1989
ACT
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon
request to the Reserve Banks.
Applicant
First Bank/Dixon,
Dixon, Illinois
First Bank of Stockton/Warren,
Stockton, Illinois
First of America Bank-Northern
Michigan,
Cheboygan, Michigan
Liberty Bank, South
San Francisco, California
Pioneer Bank and Trust,
Belle Fourche, South Dakota
Union Colony Bank,
Greeley, Colorado
Bank(s)
Lincolnway State Bank,
Sterling, Illinois
The Polo National Bank,
Polo, Illinois
First National Bank of Freeport,
Freeport, Illinois
Mount Carroll National Bank,
Mount Carroll, Illinois
First of America Bank-Petoskey,
National Association,
Petoskey, Michigan
Pacific Western Bank,
San Jose, California
First State Bank,
Buffalo, South Dakota
Northern Bank and Trust,
Ft. Collins, Colorado
Reserve
Bank
Effective
date
Chicago
May 31, 1989
Chicago
May 31, 1989
Chicago
May 25, 1989
San Francisco
June 16, 1989
Minneapolis
June 16, 1989
Kansas City
June 15, 1989
Legal Developments
589
PENDING CASES INVOLVING THE BOARD OF GOVERNORS
This list of pending cases does not include suits against the Federal Reserve Banks in which the
Board of Governors is not named a party.
CB&T Bancshares, Inc. v. Board of Governors, No.
89-1394 (D.C. Cir., filed June 21, 1989).
MCorp v. Board of Governors, No. 89-1677 (S.D.
Tex. filed May 2, 1989).
Independent Insurance Agents of America, Inc. v.
Board of Governors, No. 89-4030 (2d Cir., filed
March 9, 1989).
Securities Industry Association v. Board of Governors,
No. 89-1127 (D.C. Cir. filed February 16, 1989).
American Land Title Association v. Board of Governors, No. 88-1872 (D.C. Cir., filed December 16,
1988).
MCorp v. Board of Governors, No. CA3-88-2693-F
(N.D. Tex., filed October 28, 1988).
White v. Board of Governors, No. CU-S-88-623-RDF
(D. Nev., filed July 29, 1988).
VanDyke v. Board of Governors, No. 88-5280 (8th
Cir., filed July 13, 1988).
Baugh v. Board of Governors, No. C88-3037 (N.D.
Iowa, filed April 8, 1988).
Bonilla v. Board of Governors, No. 88-1464 (7th Cir.,
filed March 11, 1988).
Cohen v. Board of Governors, No. 88-1061 (D.N.J.,
filed March 7, 1988).
Stoddard v. Board of Governors, No. 88-1148 (D.C.
Cir., filed February 25, 1988).
Teichgraeber v. Board of Governors, No. 87-2505-0
(D. Kan., filed Oct. 16, 1987).
The Chase Manhattan Corporation v. Board of Governors, No. 87-1333 (D.C. Cir., filed July 20, 1987).
Lewis v. Board of Governors, Nos. 87-3455, 87-3545
(11th Cir., filed June 25, Aug. 3, 1987).
A1
Financial and Business Statistics
NOTE. The following tables may have
discontinuities in historical data for some
beginning with the March 1989 issue: 1.10,
1.20, 1.21, 1.22, 1.23, 1.24, 1.25, 1.26, 1.28,
1.31, 1.32, 1.35, 1.36, 1.37, 1.39, 1.40, 1.41,
some
series
1.17,
1.30,
1.42,
1.43, 1.45, 1.46, 1.47, 1.48, 1.50, 1.53, 1.54, 1.55,
1.56, 2.11, 2.14, 2.15, 2.16, 2.17, 3.14, and 3.21.
For a more detailed explanation of the changes,
see the announcement on pages 288-89 of the
April 1989
COMMERCIAL BANKING
CONTENTS
Domestic Financial Statistics
MONEY 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
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
WEEKLY REPORTING COMMERCIAL
A19
A20
A21
A22
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
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
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
MONETARY AND CREDIT AGGREGATES
INSTITUTIONS
A17 Major nondeposit funds
A18 Assets and liabilities, last-Wednesday-of-month
series
FINANCIAL
POLICY
BULLETIN.
A28
A29
A30
A30
FINANCE
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
2
Federal Reserve Bulletin • August 1989
A32 U.S. government securities dealers—Positions
and financing
A33 Federal and federally sponsored credit
agencies—Debt outstanding
A34 New security issues—State and local
governments and corporations
A35 Open-end investment companies—Net sales
and asset position
A35 Corporate profits and their distribution
A35 Total nonfarm business expenditures on new
plant and equipment
A36 Domestic finance companies—Assets and
liabilities and business credit
ESTATE
A37 Mortgage markets
A38 Mortgage debt outstanding
CONSUMER INSTALLMENT
SUMMARY
Statistics
STATISTICS
A55
A56
A56
A56
SECURITIES MARKETS AND
CORPORATE FINANCE
REAL
International
CREDIT
A39 Total outstanding and net change
A40 Terms
U.S. international transactions—Summary
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
A57 Foreign branches of U.S. banks—Balance
sheet data
A59 Selected U.S. liabilities to foreign official
institutions
REPORTED BY BANKS IN THE UNITED
STATES
A59
A60
A62
A63
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A63 Banks' own claims on unaffiliated foreigners
A64 Claims on foreign countries—Combined
domestic offices and foreign branches
REPORTED BY NONBANKING
BUSINESS
ENTERPRISES IN THE UNITED STATES
A65 Liabilities to unaffiliated foreigners
A66 Claims on unaffiliated foreigners
FLOW OF FUNDS
SECURITIES HOLDINGS AND
A41 Funds raised in U.S. credit markets
A43 Direct and indirect sources of funds to credit
markets
A44 Summary of credit market debt outstanding
A45 Summary of credit market claims, by holder
A67 Foreign transactions in securities
A68 Marketable U.S. Treasury bonds and
notes—Foreign transactions
INTEREST AND EXCHANGE
TRANSACTIONS
RATES
Domestic Nonfinancial Statistics
A69 Discount rates of foreign central banks
A69 Foreign short-term interest rates
A70 Foreign exchange rates
SELECTED
A71 Guide to Tabular Presentation,
Statistical Releases, and Special
Tables
MEASURES
A46 Nonfinancial business activity—Selected
measures
A47 Labor force, employment, and unemployment
A48 Output, capacity, and capacity utilization
A49 Industrial production—Indexes and gross value
A51 Housing and construction
A52 Consumer and producer prices
A53 Gross national product and income
A54 Personal income and saving
SPECIAL
TABLES
A72 Assets and liabilities of commercial banks,
September 30, 1988 and December 31, 1988
A84 Assets and liabilities of U.S. branches and
agencies of foreign banks, March 31, 1989
Money Stock and Bank Credit
A3
1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Annual rates of change, seasonally adjusted in percent 1
1988
1989
1989
Monetary and credit aggregates
Reserves of depository institutions2
1 Total
2 Required
3 Nonborrowed
4 Monetary base 3
5
6
7
8
9
Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt
Nontransaction components
10 In M2
11 In M3 only6
Time and savings deposits
Commercial banks
Savings
Small-denomination time
Large-denomination time 9,10
Thrift institutions
15 Savings
16 Small-denomination time
17 Large-denomination time9
12
13
14
Debt components4
18 Federal
19 Nonfederal
Q2
Q3
Q4
Q1
Jan.
Feb.
Mar.
Apr.
May
6.1
7.5
-6.2
7.3
3.1
2.9
1.3
6.5
-.8
-1.5
5.3
4.8
-4.2
-4.4
.0
4.6
-6.6
-8.9
-5.7
5.6
-2.2
-2.4
1.3
3.3
-8.1
-4.3
-14.9
4.6
-7.8'
-4.3
-17.9'
.3
-14.6
-20.0
-3.2
-1.5
6.4
6.9
7.2
8.5
8.8'
5.2
3.8
5.5'
7.1'
8.6'
2.3
3.6
4.8''
5.4'
9.1'
-.4
1.9
3.8'
4.8'
8.2'
-6.1
-1.5'
1.6'
1.0'
7.3'
1.7
1.4'
2.9'
3.2'
8.6'
-1.8
3.7'
6.7'
8.5'
7.5'
-4.7
1.0'
2.5
4.1
7.0
-14.9
-3.3
-1.0
n.a.
n.a.
7.1
8.3
3.3
12.r
4.1
9.1'
2.6'
10.8'
.1
12.6'
1.2'
8.6'
5.6'
17.2'
3.0'
7.6'
.7
7.1
10.4
12.9
9.1
7.9
11.6
18.2
4.0
18.0
13.0
-3.7
22.5
18.1
-10.3
21.5
19.1
-3.1
26.5
24.3
-10.8
28.6
22.9
-19.0
34.6
22.1'
-20.3
28.7
9.6
2.6
12.5
9.2
2.1
5.4
3.9
-2.5
6.6
7.9
-7.7
4.3
1.2
-9.2
5.3
5.9
-13.6
5.4
-2.1
-10.6
3.4'
-.3
-25.4
17.5'
12.5'
-26.0
22.7
8.0
8.3
8.9'
7.1
9.r
7.8
9.5'
7.7
8.4'
4.7
8.1'
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 CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock plus the remaining items seasonally
adjusted as a whole.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of depository institutions; (2) travelers checks of nonbank issuers; (3) demand
deposits at all commercial banks other than those due to depository institutions,
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 depositor institutions, credit union
share draft accounts, and demand deposits at thrift institutions.
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
10.2'
8.1'
12.5'
5.9'
5.1
7.6
n.a.
n.a.
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.
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 the estimated amount of overnight RPs and Eurodollars held by institution-only
money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are based on monthly averages. Growth rates for debt reflect adjustments for
discontinuities over time in the levels of debt .presented in other tables.
5. Sum of overnight RPs and Eurodollars, money market fund balances
(general purpose and broker-dealer), MMDAs, and savings and small time
deposits less the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposit liabilities.
6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents,
money market fund balances (institution-only), less a consolidation adjustment
that represents the estimated amount of overnight RPs and Eurodollars held by
institution-only money market mutual funds.
7. Excludes MMDAs.
8. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All IRA and Keogh accounts at commercial
banks and thrifts are subtracted from small time deposits.
9. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
10. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
A4
DomesticNonfinancialStatistics • August 1989
1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week ending
1989
1989
Factors
Mar.
Apr.
May
Apr. 19
Apr. 26
May 3
May 10
May 17
May 24
258,135
264,245
267,629
263,435
263,494
277,783
279,759
269,689
260,224
228,808
228,808
233,003
231,215
1,788
7,400
6,738
662
234,995
230,783
4,212
8,387
6,654
1,733
232,446
231,858
588
6,921
6,779
142
232,832
231,299
1,533
7,173
6,674
499
242,985
233,397
9,588
10,797
6,654
4,143
244,312
234,123
10,189
10,390
6,654
3,736
237,103
232,688
4,415
8,645
6,645
1,991
230,029
230,029
1,838
1,131
19,580
11,061
5,095
18,938
2,326
800
20,716
11,061
5,508
18,989
1,717
801
21,729
11,061
6,703
19,049
2,907
543
20,617
11,061
5,518
18,991
2,019
369
21,102
11,061
5,518
19,003
1,918
638
21,445
11,061
5,518
19,017
1,743
719
22,596
11,061
5,611
19,031
1,734
977
21,230
11,061
5,961
19,045
1,675
826
21,039
11,061
7,304
19,059
242,016
449
243,781
473
245,574
486
244,251
479
243,498
477
243,757
477
245,206
490
245,707
487
245,363
485
5,155
228
8,798
240
14,126
227
6,964
227
8,120
207
21,985
267
23,141
206
16,166
232
8,706
215
2,054
406
2,125
373
1,855
528
2,085
310
1,999
437
1,945
418
1,780
281
1,922
381
1,743
635
May 31
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit
2
U.S. government securities1
3
Bought outright
Held under repurchase agreements
4
5 Federal agency obligations
Bought outright
6
Held under repurchase agreements....
7
8 Acceptances
9
Loans
10 Float
11 Other Federal Reserve assets
12 Gold stock2
13 Special drawing rights certificate account..
14 Treasury currency outstanding
0
6,779
6,779
0
0
0
0
0
0
0
0
0
0
6,654
6,654
0
0
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings2
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and
adjustments
20 Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks
8,025
8,121
8,480
8,236
8,220
8,882
8,826
8,630
8,243
34,896
35,893
33,166
36,453
36,118
35,646
35,531
32,231
32,256
May 17
May 24
End-of-month figures
Wednesday figures
1989
1989
Mar.
Apr.
23 Reserve Bank credit
258,215
24 U.S. government securities1
25
Bought outright
26
Held under repurchase agreements....
27 Federal agency obligations
28
Bought outright
29
Held under repurchase agreements
30 Acceptances
31 Loans
32 Float
33 Other Federal Reserve assets
34 Gold stock 2
35 Special drawing rights certificate account..
36 Treasury currency outstanding
228,643
228,643
May
Apr. 19
Apr. 26
279,013
256,669
270,211
268,396
276,905
277,340
263,081
256,318
244,506
234,808
9,698
10,495
6,654
3,841
223,535
223,535
234,000
229,883
4,117
7,775
6,779
996
236,004
229,723
6,281
8,711
6,654
2,057
240,860
232,813
8,047
11,100
6,654
4,446
242,395
234,896
7,499
9,579
6,654
2,925
233,232
233,232
224,600
224,600
6,654
6,654
6,654
6,654
2,454
559
19,780
11,061
5,368
18,961
1,952
545
21,515
11,061
5,518
19,017
2,033
2,064
22,383
11,060
8,518
19,073
6,669
917
20,850
11,061
5,518
19,003
1,759
789
21,133
11,060
5,518
19,003
2,279
1,131
21,535
11,061
5,518
19,017
1,713
1,397
22,256
11,061
5,818
19,031
1,707
1,408
20,080
11,061
6,518
19,045
1,586
1,680
21,798
11,060
8,018
19,059
242,880
457
243,411
476
247,525
488
244,204
477
243,473
478
244,480
477
245,805
487
245,743
485
245,921
485
4,462
351
22,952
352
5,288
429
13,395
194
13,429
166
19,960
220
22,482
144
9,986
227
6,922
276
1,671
380
1,667
481
1,616
524
1,671
298
1,667
5%
1,665
305
1,669
292
1,659
600
1,616
483
May 3
May 10
May 31
SUPPLYING RESERVE FUNDS
0
6,779
6,779
0
0
0
0
6,654
6,654
0
0
0
0
0
0
0
0
0
0
0
0
ABSORBING RESERVE FUNDS
37 Currency in circulation
38 Treasury cash holdings2
Deposits, other than reserve balances, with
Federal Reserve Banks
39 Treasury
40 Foreign
41 Service-related balances and
adjustments
42 Other
43 Other Federal Reserve liabilities and
capital
44 Reserve balances with Federal
Reserve Banks
7,681
8,969
7,513
8,059
8,243
8,526
8,402
8,058
7,964
35,723
37,968
33,553
37,495
35,925
36,867
33,969
32,947
30,789
1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes any securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Revised for periods between October 1986 and April 1987. At times during
this interval, outstanding gold certificates were inadvertently in excess of the gold
stock. Revised data not included in this table are available from the Division of
Research and Statistics, Banking Section.
3. Excludes required clearing balances and adjustments to compensate for
float.
NOTE. For amounts of currency and coin held as reserves, see table 1.12.
Money Stock and Bank Credit
1.12 RESERVES AND BORROWINGS
A5
Depository Institutions1
Millions of dollars
Monthly averages 9
Reserve classification
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks2
Total vault cash 3
Vault4
Surplus
Total reserves
Required reserves
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks
1986
1987
1988
1988
Dec.
Dec.
Dec.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
37,360
24,077
22,199
1,878
59,560
58,191
1,369
827
38
303
37,673
26,185
24,449
1,736
62,123
61,094
1,029
777
93
483
37,830
27,197
25,909
1,288
63,739
62,699
1,040
1,716
130
1,244
36,997
26,745
25,410
1,335
62,407
61,287
1,119
2,861
186
2,322
37,830
27,197
25,909
1,288
63,739
62,699
1,040
1,716
130
1,244
36,475
28,376
26,993
1,383
63,468
62,323
1,145
1,662
76
1,046
32,834
29,776
27,859
1,917
60,693
59,539
1,154
1,487
97
1,050
34,623
27,059
25,589
1,470
60,212
59,255
957
1,813
139
1,334
35,841
26,746
25,456
1,290
61,288
60,511
776
2,289
213
1,707
33,199
27,166
25,712
1,454
58,911
57,881
1,031
1,720
345
1,197
1989
Biweekly averages of daily figures for weeks ending
1989
11
12
13
14
15
16
17
18
19
20
Reserve balances with Reserve Banks2
Total vault cash
Vault4
Surplus
Total reserves
Required reserves
i
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Bulks
Extended credit at Reserve Banks
Feb. 22
Mar. 8
Mar. 22
Apr. 5
Apr. 19
May 3
May 17r
May 31
June 14
June 28
32,455
29,739
27,838
1,901
60,293
59,278
1,016
1,477
99
1,111
34,485
27,581
25,962
1,620
60,446
59,490
957
1,800
116
1,250
34,702
26,738
25,332
1,406
60,034
59,299
735
1,586
136
1,164
34,623
27,095
25,659
1,436
60,282
58,977
1,305
2,177
167
1,675
36,239
26,339
25,174
1,166
61,413
61,190
223
2,582
190
1,970
35,863'
27,106
25,723
1,383
61,588'
60,345r
1,241
1,968
265
1,387
33,864
26,644
25,352
1,292
59,216
58,357
859
1,739
336
1,206
31,964
27,701
26,071
1,631
58,034
56,877
1,158
1,649
373
1,148
34,643
26,607
25,301
1,306
59,944
59,013
931
2,126
388
1,657
32,969
27,630
26,104
1,526
59,073
58,163
909
965
467
287
1. These data also appear in the Board's H.3 (502) release. For address, see inside front cover.
2. Excludes required clearing balances and adjustments to compensate for
float.
3. Dates refer to the maintenance periods in which the vault cash can be used
to satisfy reserve requirements. Under contemporaneous reserve requirements,
maintenance periods end 30 days after the lagged computation periods in which
the balances are held.
4. Equal to all vault cash held during the lagged computation period by
institutions having required reserve balances at Federal Reserve Banks plus the
amount of vault cash equal to required reserves during the maintenance period at
institutions having no required reserve balances.
5. 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.
6. 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.
7. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy
reserve requirements less required reserves.
8. 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.
9. Data are prorated monthly averages of biweekly averages.
A6
DomesticNonfinancialStatistics • August 1989
1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS
Large Member Banks1
Averages of daily figures, in millions of dollars
1988 week ending Monday
Maturity and source
July 11
July 18
July 25
Aug. 1
Aug. 8
Aug. 15
Aug. 22
Aug. 29
Sept. 5
Federal funds purchased, repurchase agreements, and
other selected borrowing in immediately available
funds
From commercial banks in the United States
For one day or under continuing contract
For all other maturities
From other depository institutions, foreign banks and
foreign official institutions, and U.S. government
agencies
For one day or under continuing contract
For all other maturities
72,579
10,493
70,622
10,721
68,388
10,653
71,992
11,289
67,616
10,782
69,245
11,136
66,871
10,102
64,904
10,187
69,394
10,001
30,899
5,900
30,891
5,792
28,342
5,682
26,473
5,947
28,408
6,654
27,188
7,463
26,570
6,700
26,952
6,579
27,114
6,629
Repurchase agreements on U.S. 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
14,510
13,204
14,962
14,749
14,802
15,276
15,502
15,402
16,127
15,083
16,293
14,913
16,304
12,587
15,212
13,177
15,337
12,365
24,778
9,192
24,766
9,064
26,015
9,332
26,956
9,970
26,384
9,845
26,803
10,381
27,452
10,559
28,070
10,701
27,866
10,279
MEMO: Federal funds loans and resale agreements in
immediately available funds in maturities of one day
or under continuing contract
9 To commercial banks in the United States
10 To all other specified customers
34,467
13,947
37,210
16,052
34,405
14,474
35,329
14,160
34,700
15,158
35,575
15,511
35,147
14,952
34,797
14,010
39,559
14,263
1
2
3
4
5
6
7
8
1. Banks with assets of $1 billion or more as of Dec. 31, 1977.
These data also appear in the Board's H.5 (507) release. For address, see inside
front cover.
2. Brokers and nonbank dealers in securities; other depository institutions;
foreign banks and official institutions; and United States government agencies,
Policy Instruments
A7
1.14 FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Extended credit 2
Adjustment credit
and
Seasonal credit'
Federal Reserve
Bank
On
6/29/89
Effective
date
7
2/24/89
2/24/89
2/24/89
2/24/89
2/24/89
2/24/89
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco . . .
7
After 30 days of borrowing 3
First 30 days of borrowing
Previous
rate
On
6/29/89
Effective
date
7
2/24/89
2/24/89
2/24/89
2/24/89
2/24/89
2/24/89
6V2
2/24/89
2/24/89
2/24/89
2/24/89
2/27/89
2/24/89
6
Vl
2/24/89
2/24/89
2/24/89
2/24/89
2/27/89
2/24/89
7
Previous
rate
6
6
Vl
Vl
On
6/29/89
Effective
date
Previous
rate
9.90
6/29/89
6/29/89
6/29/89
6/29/89
6/29/89
6/29/89
9.85
9.90
6/29/89
6/29/89
6/29/89
6/29/89
6/29/89
6/29/89
Effective date
6/15/89
6/15/89
6/15/89
6/15/89
6/15/89
6/15/89
6/15/89
6/15/89
6/15/89
6/15/89
6/15/89
6/15/89
9.85
Range of rates for adjustment credit in recent years 4
Effective date
In effect Dec. 31, 1977.
1978—Jan.
9
20
May 11
12
July
3
10
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
6
6-6Vt
6
6Vl-7
6
6
7-71/4
7V4
1V4
Vi
1
Vl
6Vl
7
7
IV*
73/4
m
8
8
8-8W
8 Vl
SVi
SVl
W/l-WA 9 Vl
9 Vl
9 Vl
1979—July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
10
10-10VS
1980—Feb. 15
19
May 29
30
June 13
16
10
10W
10 Vl
lOVi
10^-11
11
12
12
12-13
13
12-13
13
13
11
11-12
12
11-12
11
11
12
13
12
11
11
Effective date
1980—July
28
29
Sept. 26
Nov. 17
Dec. 5
1981—May
Nov.
Dec.
5
8
2
6
4
1982—July
20
23
2
3
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17
Aug.
1. Adjustment credit is available on a short-term basis to help depository
institutions meet temporary needs for funds that cannot be met through reasonable alternative sources. After May 19,1986, the highest rate established for loans
to depository institutions may be charged on adjustment credit loans of unusual
size that result from a major operating problem at the borrower's facility.
Seasonal credit is available to help smaller depository institutions meet regular,
seasonal needs for funds that cannot be met through special industry lenders and
that arise from a combination of expected patterns of movement in their deposits
and loans. A temporary simplified seasonal program was established on Mar. 8,
1985, and the interest rate was a fixed rate Vl percent above the rate on adjustment
credit. The program was reestablished for 1986 and 1987; but was not renewed for
1988.
2. Extended credit is available to depository institutions, when similar assistance is not reasonably available from other sources, when exceptional circumstances or practices involve only a particular institution or when an institution is
experiencing difficulties adjusting to changing market conditions over a longer
period of time.
3. For extended-credit loans outstanding more than 30 days, a flexible rate
somewhat above rates on market sources of funds ordinarily will be charged, but
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
Effective date
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
10-11
10
11
12
12-13
10
10
11
12
13
1984—Apr.
9
13
Nov. 21
26
Dec. 24
8'A-9
9
8Vi-9
8
8
9
9
8
8W
8
13-14
14
13-14
13
12
14
14
13
13
12
1985—May 20
24
71/2-8
7
IVi
7 Vi
im-12
11
11
11
11
6
5VS-6
7
7
6Vi
6
5
6
6
Vl
Vl
11
11-11
11
10'/!
10-10^
10
1986—Mar.
Vl
Vl
\m
10
10
9Vl-10 9 Vl
9 Vl
9 Vi
9 - 9 Vl
9
9
9
8Vi-9
9
8VS-9
SVz
8 Vl
%Vi
7
10
Apr. 21
July 11
Aug. 21
22
Vi
Vi
7-V/l
1
6Vl-7
5Vl
1987—Sept.
4
11
5V4-6
6
1988—Aug.
9
11
6-6
6
1989—Feb. 24
27
In effect June 29, 1989
Vi
Vl
5Vl
Vl 6 Vl
Vi
6 Vi
6Vl-7 1
7
1
7
7
in no case will the rate charged be less than the basic discount rate plus 50 basis
points. The flexible rate is reestablished on the first business day of each
two-week reserve maintenance period. At the discretion of the Federal Reserve
Bank, the time period for which the basic discount rate is applied may be
shortened.
4. For earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics, 1914-1941, and 1941-1970; Annual Statistical
Digest, 1970-1979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than four weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980 through May 7,
1980. There was no surcharge until Nov. 17,1980, when a 2 percent surcharge was
adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and
to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective
Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981 the
formula for applying the surcharge was changed from a calendar quarter to a
moving 13-week period. The surcharge was eliminated on Nov. 17, 1981.
A8
DomesticNonfinancialStatistics • August 1989
1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1
Percent of deposits
Type of deposit, and
deposit interval 2
Depository institution requirements
after implementation of the
Monetary Control Act
Percent of
deposits
Effective date
Net transaction
accounts3,4
$0 million-$41.5 million
More than $41.5 million
3
12
12/20/88
12/20/88
Nonpersonal time deposits5
By original maturity
Less than 1 Vl years
\Vl years or more
3
0
10/6/83
10/6/83
Eurocurrency
All types
3
11/13/80
liabilities
1. Reserve requirements in effect on Dec. 31, 1988. Required reserves must be
held in the form of deposits with Federal Reserve Banks or vault cash. Nonmembers may maintain reserve balances with a Federal Reserve Bank indirectly on a
pass-through basis with certain approved institutions. For previous reserve
requirements, see earlier editions of the Annual Report and of the FEDERAL
RESERVE BULLETIN. Under provisions of the Monetary Control Act, depository
institutions include commercial banks, mutual savings banks, savings and loan
associations, credit unions, agencies and branches of foreign banks, and Edge
corporations.
2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law
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. N o corresponding adjustment is to be made in
the event of a decrease. On Dec. 20, 1988, the exemption was raised from $3.2
million to $3.4 million. In determining the reserve requirements of depository
institutions, the exemption shall apply in the following order: (1) net NOW
accounts (NOW accounts less allowable deductions); (2) net other transaction
accounts; and (3) nonpersonal time deposits or Eurocurrency liabilities starting
with those with the highest reserve ratio. With respect to NOW accounts and
other transaction accounts, the exemption applies only to such accounts that
would be subject to a 3 percent reserve requirement.
3. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers in excess of
three per month for the purpose of making payments to third persons or others.
However, MMDAs and similar accounts subject to the rules that permit no more
than six preauthorized, automatic, or other transfers per month, of which no more
than three can be checks, are not transaction accounts (such accounts are savings
deposits subject to time deposit reserve requirements).
4. The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage increase in transaction accounts held by
all depository institutions, determined as of June 30 each year. Effective Dec. 20,
1988 for institutions reporting quarterly and Dec. 27, 1988 for institutions
reporting weekly, the amount was increased from $40.5 million to $41.5 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
A9
1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1
M i l l i o n s o f dollars
1989
1988
Type of transaction
1986
1987
1988
Oct.
Nov.
Dec.
Jan.
Apr.
Mar.
Feb.
U . S . TREASURY SECURITIES
Outright transactions (excluding matched
transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
22,604
2,502
0
1,000
18,983
6,051
0
9,029
8,223
587
0
2,200
375
0
0
0
3,599
0
0
0
1,125
0
0
0
0
154
0
600
0
3,688
0
1,600
0
0
0
0
3,077
0
0
0
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
190
0
18,674
-20,180
0
3,659
300
21,504
-20,388
70
2,176
0
23,854
-24,588
0
0
0
1,669
-916
0
0
0
5,264
-2,391
0
1,084
0
1,750
-1,703
0
0
0
620
-2,703
0
0
0
5,418
-2,308
0
0
0
2,646
-2,322
0
172
0
1,657
-110
0
10
11
12
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
893
0
-17,058
16,985
10,231
452
-17,975
18,938
5,485
800
-17,720
22,515
0
0
-1,544
639
0
0
-3,088
2,091
1,824
0
-1,750
1,703
0
3
-541
2,492
0
225
-5,319
2,008
0
0
-2,646
2,322
1,436
0
-1,532
0
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
236
0
-1,620
2,050
2,441
0
-3,529
950
1,579
175
-5,946
1,797
0
0
-125
276
0
0
-2,145
300
562
0
0
0
0
20
-79
212
0
0
-100
200
0
0
0
0
287
0
-125
110
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
158
0
0
1,150
1,858
0
0
500
1,398
0
-188
275
0
0
0
0
0
0
-31
0
432
0
0
0
0
0
0
0
0
0
0
100
0
0
0
0
284
0
0
0
24,081
2,502
1,000
37,170
6,803
9,099
18,863
1,562
2,200
375
0
0
3,599
0
0
5,028
0
0
0
177
600
0
3,913
1,600
0
0
0
5,255
0
0
Matched
transactions
25 Gross sales
26 Gross purchases
927,999
927,247
950,923
950,935
1,168,484
1,168,142
98,804
97,897
98,618
100,680
93,650
93,584
94,204
94,252
110,393
112,472
83,677
82,821
77,349
78,259
Repurchase
agreements2
27 Gross purchases
28 Gross sales
170,431
160,268
314,621
324,666
152,613
151,497
4,715
7,727
17,867
16,463
15,575
14,815
17,208
21,969
0
0
0
0
22,244
12,547
29,988
11,234
15,872
-3,544
7,064
5,721
-5,489
-3,434
-856
15,863
0
0
398
0
0
276
0
0
587
0
0
75
0
0
14
0
0
135
0
0
148
0
0
40
0
0
0
0
0
125
31,142
30,521
80,353
81,350
57,259
56,471
2,223
4,454
4,763
5,132
7,672
6,853
8,980
11,081
0
0
0
0
7,207
3,366
35 Net change in federal agency obligations
222
-1,274
198
-2,306
-383
683
-2,249
-40
0
3,716
36 Total net change in System Open Market
Account
30,212
9,961
16,070
-5,850
6,681
6,404
-7,738
-3,474
-856
19,579
All maturities
22 Gross purchases
23 Gross sales
24 Redemptions
29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
Outright
transactions
30 Gross purchases
31 Gross sales
32 Redemptions
Repurchase
agreements2
33 Gross purchases
34 Gross sales
1. Sales, redemptions, and negative figures reduce holdings of the System Open
Market Account; all other figures increase such holdings. Details may not add to
totals because of rounding.
2. In July 1984 the Open Market Trading Desk discontinued accepting bankers
acceptances in repurchase agreements,
A10
DomesticNonfinancialStatistics • August 1989
1.18 FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements1
M i l l i o n s o f dollars
Account
May 3
May 10
Wednesday
End of month
1989
1989
May 17
May 24
May 31
Mar.
Apr.
May
Consolidated condition statement
ASSETS
11,061
5,518
461
11,061
5,818
466
11,061
6,518
472
11,060
8,018
460
11,060
8,518
432
11,061
5,368
481
11,061
5,518
466
11,060
8,518
432
2,279
0
0
1,713
0
0
1,707
0
0
1,586
0
0
2,033
0
0
2,454
0
0
1,952
0
0
2,033
0
0
6,654
4,446
6,654
2,925
6,654
0
6,654
0
6,654
0
6,779
0
6,654
3,841
6,654
0
110,002
92,497
30,314
232,813
8,047
240,860
112,085
92,497
30,314
234,896
7,499
242,395
110,421
92,397
30,314
233,232
0
233,232
101,864
92,322
30,414
224,600
0
224,600
100,799
92,322
30,414
223,535
0
223,535
108,011
90,603
30,029
228,643
0
228,643
111,997
92,497
30,314
234,808
9,698
244,506
100,799
92,322
30,414
223,535
0
223,535
254,239
253,687
241,593
232,840
232,222
237,876
256,953
232,222
8,533
762
7,273
761
7,865
762
7,235
762
10,442
761
7,069
761
8,294
761
10,442
761
11,048
9,725
11,461
10,034
11,871
7,447
13,342
7,694
13,656
7,966
10,471
8,548
10,911
9,843
13,656
7,966
301,347
300,561
287,589
281,411
285,057
281,635
303,807
285,057
226,402
227,727
227,655
227,806
229,372
224,857
225,336
229,372
38,532
19,960
220
305
35,638
22,482
144
292
34,606
9,986
227
600
32,405
6,922
276
483
33,553
5,288
429
524
37,394
4,462
351
380
37,968
22,952
352
481
33,553
5,288
429
524
59,017
58,556
45,419
40,086
39,794
42,587
61,753
39,794
7,402
3,730
5,876
3,680
6,457
3,357
5,555
3,276
8,378
3,212
6,510
3,265
7,749
3,990
8,378
3,212
296,551
295,839
282,888
276,723
280,756
277,219
298,828
280,756
2,136
2,112
548
2,136
2,112
474
2,142
2,112
447
2,142
2,112
434
2,142
2,081
78
2,131
2,107
194
2,135
2,112
732
2,142
2,081
78
33 Total liabilities and capital accounts
301,347
300,561
287,589
281,411
285,057
281,635
303,807
285,057
34 MEMO: Marketable U.S. Treasury securities held in
custody for foreign and international accounts
236,901
237,207
237,670
235,972
234,667
235,732
236,761
234,667
1 Gold certificate account
2 Special drawing rights certificate account
3
Loans
4
To depository institutions
5
Other
6 Acceptances held under repurchase agreements
Federal agency obligations
7
Bought outright
8
Held under repurchase agreements
U.S. Treasury securities
Bought outright
9
Bills
10
Notes
Bonds
11
12
Total bought outright 1
13
Held under repurchase agreements
14 Total U.S. Treasury securities
15 Total loans and securities
16 Items in process of collection
17 Bank premises
Other assets
18
Denominated in foreign currencies
19
All other 4
20 Total assets
LIABILITIES
21 Federal Reserve notes
Deposits
22
To depository institutions
23
U.S. Treasury—General account
24
Foreign—Official accounts
25
Other
26 Total deposits
77 Deferred, credit items
28 Other liabilities and accrued dividends
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
Federal Reserve note statement
3S Federal Reserve notes outstanding issued to bank
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. Treasury and agency securities
270,064
43,662
226,402
270,605
42,878
227,727
270,623
42,968
227,655
271,322
43,516
227,806
271,562
42,190
229,372
268,232
43,374
224,857
270,007
44,671
225,336
271,562
42,190
229,372
11,061
5,518
0
209,823
11,061
5,818
0
210,848
11,061
6,518
0
210,076
11,060
8,018
0
208,728
11,060
8,518
0
209,794
11,061
5,368
0
208,428
11,061
5,518
0
208,757
11,060
8,518
0
209,794
42 Total collateral
226,402
227,727
227,655
227,806
229,372
224,857
225,336
229,372
1. Some of these data also appear in the Board's H.4.1 (503) release. For
address, see inside front cover.
2. Includes securities loaned—fully guaranteed by U.S. Treasury securities
pledged with Federal Reserve Banks—and excludes securities sold and scheduled
to be bought back under matched sale-purchase transactions.
3. Valued monthly at market exchange rates.
4. Includes special investment account at the Federal Reserve Bank of Chicago
in Treasury bills maturing within 90 days.
5. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
Federal Reserve Banks
1.19 FEDERAL RESERVE BANKS
All
Maturity Distribution of Loan and Security Holdings
Millions of dollars
End of month
Wednesday
1989
Type and maturity groupings
May 3
May 10
May 17
May 24
May 31
Mar. 31
Apr. 28
May 31
1 Loans—Total
Within 15 days
2
16 days to 90 days
3
4 91 days to 1 year
2,279
2,127
152
0
1,713
1,554
159
0
1,707
1,668
39
0
1,586
1,551
35
0
2,033
1,940
93
0
863
854
9
0
2,454
2,402
52
0
2,033
1,940
93
0
5 Acceptances—Total
6
Within 15 days
16 days to 90 days
7
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'
11 16 days to 90 days
12 91 days to 1 year
13 Over 1 year to 5 years
14 Over 5 years to 10 years
15 Over 10 years
240,860
19,964
51,013
77,191
52,347
13,053
27,292
242,395
22,133
52,602
74,968
52,347
13,053
27,292
233,232
9,598
54,543
76,675
52,598
13,512
26,306
224,600
9,565
46,220
76,474
52,523
13,512
26,306
223,535
4,691
49,365
76,876
52,786
13,511
26,306
232,933
5,457
58,957
73,405
55,524
12,681
26,909
228,643
7,183
53,969
76,037
51,664
12,781
27,009
223,535
4,691
49,365
76,876
52,786
13,511
26,306
16 Federal agency obligations—Total
17 Within 15 days'
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
11,100
4,446
820
1,264
3,412
969
189
9,579
3,011
734
1,319
3,357
969
189
6,654
386
435
1,318
3,357
969
189
6,654
386
435
1,318
3,357
969
189
6,654
347
473
1,324
3,352
969
189
6,819
136
835
1,303
3,359
997
189
6,779
240
726
1,279
3,357
988
189
6,654
347
473
1,324
3,352
969
189
1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements.
A12
DomesticNonfinancialStatistics • August 1989
1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE 1
Billions of dollars, averages of daily figures
1988
Item
1985
Dec.
1987
Dec.
1986
Dec.
1989
1988
Dec.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr/
May
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS'*
1 Total reserves3
2
3
4
5
Nonborrowed reserves
Nonborrowed reserves plus extended credit4
Required reserves
Monetary base
48.49
58.14
58.69
60.71
60.86
60.85
60.71
60.37
60.26
59.85
59.46
58.74
47.17
47.67
47.44
219.51
57.31
57.62
56.77
241.45
57.92
58.40
57.66
257.99
58.99
60.23
59.67
275.50
58.56
60.34
59.80
273.66
57.99
60.31
59.73
274.38
58.99
60.23
59.67
275.50
58.71
59.75
59.23
276.78
58.77
59.82
59.11
277.55
58.04
59.38
58.90
278.61
57.17
58.88
58.69
278.67
57.02
58.22
57.71
278.33
Not seasonally adjusted
6 Total reserves3
7
8
9
10
Nonborrowed reserves
Nonborrowed reserves plus extended credit4
Required reserves
Monetary base
49.59
59.46
60.06
62.21
60.37
60.96
62.21
62.07
59.37
58.94
60.01
57.72
48.27
48.77
48.53
222.73
58.64
58.94
58.09
245.25
59.28
59.76
59.03
262.08
60.50
61.74
61.17
279.71
58.07
59.85
59.31
272.29
58.10
60.42
59.84
275.32
60.50
61.74
61.17
279.71
60.40
61.45
60.92
277.92
57.88
58.93
58.22
274.36
57.13
58.46
57.98
275.62
57.72
59.43
59.23
278.11
56.00
57.20
56.69
277.49
48.14
59.56
62.12
63.74
61.92
62.41
63.74
63.47
60.69
60.21
61.29
58.91
46.82
47.32
47.08
223.53
58.73
59.04
58.19
247.71
61.35
61.83
61.09
266.16
62.02
63.27
62.70
283.18
59.62
61.40
60.85
275.78
59.55
61.87
61.29
278.65
62.02
63.27
62.70
283.18
61.81
62.85
62.32
281.31
59.21
60.26
59.54
277.66
58.40
59.73
59.25
278.94
59.00
60.71
60.51
281.52
57.19
58.39
57.88
280.54
NOT ADJUSTED FOR
,
CHANGES IN RESERVE REQUIREMENTS"
11 Total reserves3
12
13
14
15
Nonborrowed reserves
Nonborrowed reserves plus extended credit4
Required reserves
Monetary base
1. Latest monthly and biweekly figures are available from the Board's H.3(502)
statistical release. Historical data and estimates of the impact on required reserves
of changes in reserve requirements are available from the Monetary and Reserves
Projections Section. Division of Monetary Affairs. Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
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. 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 held during the lagged
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
4. Extended credit consists of borrowing at the discount window under
the terms and conditions established for the extended credit program to helpdepository institutions deal with sustained liquidity pressures. Because there isnot
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.
5. 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 plus, for institutions not having required reserve balances, the excess of current vault cash over
the amount applied to satisfy current reserve requirements. Currency and vault
cash figures are measured over the weekly computation period ending Monday.
The seasonally adjusted monetary base 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.
6. 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.
Monetary and Credit Aggregates
A13
1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES 1
Billions of dollars, averages of daily figures
1989
1985
Dec.
1986
Dec.
1987
Dec.
1988
Dec.
Feb.
Mar.
Apr.
May
773.4
3,072.8
3,954.3
n.a.
n.a.
Seasonally adjusted
1 Ml
2 M2
M3
4 L
5 Debt
620.5
2,567.4
3,201.7
3,830.6
6,733.3'
725.9
2,811.2
3,494.9
4,137.1
7,596.9'
752.3
2,909.9
3,677.6
4,340.2'
8,310.7'
790.3
3,069.4'
3,913.0'
4,673.5'
9,052.1'
787.4
3,069.2'
3,927.7'
4,689.7'
9,172.3'
786.3
3,078.7'
3,949.5'
4,723.C
9,229.4'
783.2
3,081.3'
3,957.6'
4,739.2
9,283.5
167.8
5.9
267.3
179.5
180.5
6.5
303.2
235.8
196.4
7.1
288.3
260.4
211.8
7.6
288.6
282.3
214.3
7.5
284.8
280.9
215.6
7.3
284.3
279.1
215.9
7.3
281.5
278.5
1,946.9
634.3
2,085.3
683.7
2,157.7
767.6
2,279.2'
843.6'
2,281.8'
858.5'
2,292.4'
870.8'
2,298.1'
876.4'
6
7
8
9
Ml components
Currency
Travelers checks
Demand deposits
Other checkable deposits6
10
11
Nontransactions components
In M27
In M3 only8
1?
13
Savings deposits 9
Commercial Banks
Thrift institutions
125.0
176.6
155.8
215.2
178.5
237.8
192.5
238.8
190.3
234.3
188.6
232.2
185.6
227.3
182.5
222.4
14
15
Small-denomination time deposits 10
Commercial Banks
Thrift institutions
383.3
499.2
364.6
489.3
385.3
528.8
443.1
582.2
461.0
587.4
472.0
589.0
485.6
597.6'
497.2
608.9
16
17
Money market mutual funds
General purpose and broker-dealer
Institution-only
176.5
64.5
208.0
84.4
221.1
89.6
239.4
87.6
247.2'
89.6
256.0'
87.6
260.2
87.7
259.9
91.6
18
19
Large-denomination time deposits' 1
Commercial Banks 12
Thrift institutions
285.1
151.5
288.8
150.1
325.4
162.0
364.9
172.9
378.2
173.4
385.5
173.4
392.6
175.2
395.7
176.3
70
21
Debt components
Federal debt
Nonfederal debt
1,585.3
1,805.8
5,791.1'
1,957.5
6,353.1'
2,114.0'
6,938.1'
2,140.4'
7,032.0'
2,162.6'
7,066.7'
2,171.8
7,111.7
n.a.
n.a.
767.2
3,063.3
3,944.2
n.a.
n.a.
5M1.9
216.4
7.3
278.2
271.5
2,299.4
881.5
Not seasonally adjusted
??. Ml
M2
?4
25
26
27
28
29
30
Ml components
Currency
Travelers checks
Demand deposits
Other checkable deposits
Nontransactions components
31
32
M3 only8
633.5
2,576.2
3,213.3
3,843.7
6,723.5'
740.4
2,821.1
3,507.4
4,152.0
7,581.1'
766.4
2,918.7
3,688.5
4,354.5'
8,292.8'
804.4
3,077.1'
3,922.8'
4,687.(y
9,037.5'
772.3
3,056.7'
3,915.6'
4,686.6'
9,136.4'
775.1
3,072.1'
3,944.3'
4,719.6'
9,190.2'
791.3'
3,092.9'
3,963.2'
4,741.0
9,246.3
170.2
5.5
276.9
180.9
183.0
6.0
314.0
237.4
199.3
6.5
298.6
262.0
214.9
6.9
298.8
283.7
211.9
7.1
275.7
277.6
213.9
7.0
275.8
278.3
215.1
7.0
283.3
286.0
216.6
7.1
273.3
270.2
1,942.7
637.1
2,080.7
686.3
2,152.3
769.8
2,272.8'
845.7'
2,284.4'
859.0'
2,297.0'
872.2'
2,301.5'
870.3'
2,296.1
880.8
33
34
Money market deposit accounts
Commercial Banks
Thrift institutions
332.8
180.7
379.6
192.9
358.8
167.5
352.5
150.3
342.5
142.9
340.1
140.2
336.3
135.0
327.1
129.9
35
36
Savings deposits 9
Commercial Banks
Thrift institutions
123.7
174.8
154.2
212.7
176.6
234.8
190.3
235.6
188.2
230.5
187.8
230.7
186.2
227.9
183.7
223.8
37
38
Small-denomination time deposits 10
Commercial Banks
Thrift institutions
384.0
499.9
365.3
489.8
386.1
529.1
444.1
582.4
462.8
591.6
473.0
592.0
483.6
598.5'
493.5
605.8
39
40
Money market mutual funds
General purpose and broker-dealer
Institution-only
176.5
64.5
208.0
84.4
221.1
89.6
239.4
87.6
247.2'
89.6
256.0'
87.6
260.2
87.7
259.9
91.6
41
42
Large-denomination time deposits"
Commercial Banks
Thrift institutions
285.4
151.8
289.1
150.7
325.8
163.0
365.6
174.0
378.1
174.3
387.0
173.2
390.5
173.7
394.4
175.2
43
44
Debt components
Federal debt
Nonfederal debt
1,583.7
5,139.8'
1,803.9
5,777.2'
1,955.6
6,337.2'
2,111.8
6,925.7'
2,133.6
7,002.8'
2,149.0'
7,041.2'
For notes see following page.
2,155.1
7,091.3
n.a.
n.a.
A14
DomesticNonfinancialStatistics • August 1989
NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the Board's H.6 (508)
release. Historical data are available from the Monetary and Reserves Projection
section, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
2. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of depository institutions; (2) travelers checks of nonbank issuers; (3) demand
deposits at all commercial banks other than those due to depository institutions,
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.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, MMDAs, savings and smalldenomination time deposits (time deposits—including retail RPs—in amounts of
less than $100,000), and balances in both taxable and tax-exempt general purpose
and broker-dealer money market mutual funds. Excludes individual retirement
accounts (IRA) and Keogh balances at depository institutions and money market
funds. Also excludes all balances held by U.S. commercial banks, money market
funds (general purpose and broker-dealer), foreign governments and commercial
banks, and the U.S. government.
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 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.
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of
depository institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. Travelers checks issued by depository institutions are included in
demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other
than those due to depository institutions, the U.S. government, and foreign banks
and official institutions less cash items in the process of collection and Federal
Reserve float.
6. Consists of NOW and ATS balances at all depository institutions, credit
union share draft balances, and demand deposits at thrift institutions.
7. Sum of overnight RPs and overnight Eurodollars, money market fund
balances (general purpose and broker-dealer), MMDAs, and savings and small
time deposits.
8. Sum of large time deposits, term RPs, and term Eurodollars of U.S.
residents, money market fund balances (institution-only), less the estimated
amount of overnight RPs and Eurodollars held by institution-only money market
funds.
9. Savings deposits exclude MMDAs.
10. 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.
11. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
12. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
Monetary and Credit Aggregates
A15
1.22 BANK DEBITS AND DEPOSIT TURNOVER 1
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
1988
Bank group, or type of customer
1986
1987
Nov.
Oct.
Dec.
Jan.
Feb.
Mar.
Seasonally adjusted
DEBITS TO
Demand deposits3
1 All insured banks
2 Major New York City banks
3 Other banks
4 ATS-NOW accounts 4
5 Savings deposits
1989
1988
188,346.0
91,397.3
96,948.8
2,182.5
403.5
217,116.2
104,496.3
112,619.8
2,402.7
526.5
226,888.4
107,547.3
119,341.2
2,757.7
583.0
235,980.5
114,876.4
121,104.1
2,820.2
521.3
238,497.5
112,071.8
126,425.7
2,897.2
574.9
245,617.5
111,115.5
134,502.0
3,020.8
640.7
252,226.7
109,875.9
142,350.8
2,976.2
647.4
255,774.3
121,770.1
134,004.2
3,054.9
649.2
249,088.3
111,387.4
137,700.9
3,264.9
675.2
556.5
2,498.2
321.2
15.6
3.0
612.1
2,670.6
357.0
13.8
3.1
641.2
2,903.5
376.8
14.7
3.1
659.7
3,086.1
377.9
14.8
2.8
676.6
3,034.6
400.6
15.1
3.1
698.5
3,140.7
425.3
15.8
3.4
716.3
3,113.7
449.3
15.6
3.5
734.4
3,618.0
425.9
16.0
3.5
721.0
3,393.0
440.4
17.1
3.6
DEPOSIT TURNOVER
6
7
8
9
10
Demand deposits 3
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 4
Savings deposits
Not seasonally adjusted
DEBITS TO
Demand deposits
11 All insured banks
12 Major New York City banks
13 Other banks
14 ATS-NOW accounts 4
15 MMDA®
16 Savings deposits
188,506.7
91,500.1
97,006.7
2,184.6
1,609.4
404.1
217,125.1
104,518.8
112,606.2
2,404.8
1,954.2
526.8
227,010.7
91,242.6
119,445.7
2,754.7
2,430.1
578.0
227,485.2
111,019.4
116,465.8
2,805.4
2,325.8
540.9
228,743.0
108,689.1
120,053.9
2,714.1
2,539.7
523.7
258,119.4
117,470.7
140,648.8
3,163.8
2,940.5
655.6
257,649.6
112,480.2
145,169.4
3,245.1
3,072.5
668.7
231,347.8
110,047.2
121,300.6
2,762.1
2,622.4
573.3
264,581.6
120,202.2
144,379.4
3,228.6
2,636.7
649.6
556.7
2,499.1
321.2
15.6
4.5
3.0
612.3
2,674.9
356.9
13.8
5.3
3.1
641.7
2,901.4
377.1
14.7
6.9
3.1
639.8
3,059.1
364.8
14.9
6.7
2.9
643.3
2,998.6
375.9
14.3
7.3
2.8
699.1
3,058.1
425.2
16.3
8.4
3.5
713.7
2,998.6
448.7
16.7
8.9
3.6
683.1
3,255.7
397.8
14.5
7.8
3.1
782.3
3,603.3
473.6
16.9
7.8
3.5
DEPOSIT TURNOVER
17
18
19
20
21
22
Demand deposits 3
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 4
MMDA
Savings deposits5
1. Historical tables containing revised data for earlier periods may be obtained
from the Monetary and Reserves Projections Section, Division of Monetary
Affairs, 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.
2. Annual averages of monthly figures.
3. Represents accounts of individuals, partnerships, and corporations and
of states and political subdivisions.
4. 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.
5. Excludes ATS and NOW accounts, MMDA and special club accounts, such
as Christmas and vacation clubs.
6. Money market deposit accounts.
A16
DomesticNonfinancialStatistics • August 1989
1.23 LOANS AND SECURITIES
All Commercial Banks1
B i l l i o n s o f dollars; a v e r a g e s o f W e d n e s d a y
figures
1988
1989
Category
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
Seasonally adjusted
1 Total loans and securities2
2,343.5
2 U.S. government securities
348.8
3 Other securities
196.7
4 Total loans and leases
1,797.9
5
Commercial and industrial . . . . .
589.3
6
Bankers acceptances h e l d 3 . . .
4.3
7
Other commercial and
industrial
584.9
8
U.S. addressees
578.1
9
Non-U.S. addressees
6.8
10
Real estate
626.9
11
Individual
343.4
12
Security
39.5
13
Nonbank financial
institutions
30.6
14
Agricultural
29.6
15
State and political
subdivisions
49.2
16
Foreign banks
8.1
17
Foreign official institutions
5.0
18
Lease financing receivables
26.8
19
All other loans
49.5 r
2,358.5
2,371.4
2,373.5
2,392.6
2,400.6
2,408.0
2,412.8
2,441.8
2,454.9
2,460^
2,476.9
349.3
196.9
1,812.3
594.9
4.3
350.9
196.7
1,823.9
595.3
4.2
353.2
195.4
1,825.0
594.3
4.1
356.0
196.6
1,839.9
597.8
4.1
358.5
195.3
1,846.8
598.9
4.3
362.4
192.9
1,852.7
599.7
4.1
361.8
188.0
1,863.0
604.5
4.3
363.4
188.5
1,889.9
616.5
4.1
370.3
187.7'
1,896.8
614.5
4.0
372.2
185.3
1,903.4'
616.2'
4.0
375.3
184.7
1,916.9
622.0
4.2
590.6
583.7
6.9
633.3
344.6
38.9
591. r
584.4
6.7
640.3
346.5
39.7
590.3
583.5
6.8
646.9
348.9
36.7
593.8
587.3
6.5
654.7
350.8
38.6'
594.6
588.5
6.1'
659.3
352.3
38.0'
595.6
589.6
6.0
664.8
355.1
38.1'
600.2
594.5
5.7
671.2
357.0
37.2'
612.4
607.5
5.0
678.3
357.9
44.2'
610.5
605.0
5.5
685.5'
359.9
43 .(K
612.2'
607.3'
4.9
694.8
362.1'
39.4'
617.8
612.3
5.5
700.8
364.7
37.4
31.0
29.6
31.0
29.6
30.5
29.6
30. r
29.8
30.0
30.3
29.9
30.7
30.1
30.7
30.5
30.7
29.6
30.7
29.1
30.4
28.9
30.3
48.8
8.2
5.0
27.5
50.3 r
48.3'
8.2
5.2
27.6
52.3
48. r
7.5
5.2
27.8
49.3'
48.7
7.8
5.1
27.9
48.4'
48.(K
8.2
5.4
28.0
48.5'
47.1
7.5
5.6
28.1
46.2'
44.8
7.6
5.6
28.3
46.<y
45.0
8.2
5.5
28.4
44.6'
45.1
7.9
5.5
28.6
46.5'
45.2
8.0
5.6
28.6
43.9'
45.3
9.1
5.6
29.6
43.2
Not seasonally adjusted
20 Total loans and securities2
2,346.6
2,352.6
2,364.4
2,370.9
2,383.8
2,399.6
2,420.3
2,420.7
2,443.6
2,452.8
2,463.9
2,478.0
21 U.S. government securities . . .
22 Other securities
23 Total loans and leases 2
24
Commercial and industrial . .
25
Bankers acceptances held
26
Other commercial and
industrial
27
U.S. addressees 4
28
Non-U.S. addressees
29
Real estate
30
Individual
31
Security
32
Nonbank financial
institutions
33
Agricultural
34
State and political
subdivisions
35
Foreign banks
36
Foreign official institutions..
37
Lease financing receivables .
38
All other loans
347.8
196.9
1,801.9
593.1
4.5
347.9
196.4
1,808.2
593.9
4.4
351.1
197.0
1,816.3
591.0
4.3
353.0
195.2
1,822.7
589.5
4.2
352.9
195.4
1,835.5
593.2
4.1
357.2
195.4
1,847.0
596.5
4.2
362.7
192.7
1,865.0
602.8
4.0
363.6
190.1
1,867.0
603.8
4.1
367.9
188.3
1,887.4
615.9
4.0
371.8
187.0
1,894.0
617.8
3.9
372.4
185.2
1,906.2'
620.8'
3.9
374.4
185.1
1,918.5
625.7
4.2
588.5
581.7
6.9
626.8
342.0
41.2
589.5
582.6
6.9
633.7
343.5
38.6
586.7
580.1
6.6
641.5
346.7
38.5
585.4
578.9'
6.5
648.6
350.5
35.3
589.2'
583.0
6.1
655.6
351.8
37.V
592.2
586.2
6.1
661.1
353.3
37.5'
598.8'
592.6
6.1
666.1
359.0
38.5'
599.7
594.4
5.4
671.2
359.8
37.6'
611.8
606.5
5.4
676.4
357.2
43.2'
613.8'
608.5
5.4
682.8
357.0
43.6'
616.9'
611.5'
5.4
692.7
359.6
41.4'
621.5
615.9
5.6
699.5
362.5
38.3
30.8
29.9
31.0
30.3
30.9
30.4
30.4
30.5
29.8
30.6
30.1
30.5
30.9
30.5
30.6
30.1
29.9
29.8
29.0
29.6
29.0
29.6
29.1
30.1
48.9
7.9
5.0
26.8
49.5
48.2
8.4
5.0
27.4
48.2'
47.7
8.1
5.2
27.5
49.0
47.4
7.7
5.2
27.7
49.8'
48.3'
7.9
5.1
27.8
48.3'
47.4'
8.2
5.4
27.9
49.0'
46.9
7.8
5.6
28.3
48.6'
46.3
7.8
5.6
28.6
45.7'
46.0
8.3
5.5
28.5
46^
45.7
7.7
5.5
28.6
46.7'
45.4
7.7
5.6
28.7
45.7'
45.2
8.8
5.6
29.5
44.3
1. These data also appear in the Board's G.7 (407) release. For address, see
inside front cover.
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 Banking Institutions
A17
1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS 1
Monthly averages, billions of dollars
1989
1988
Source
Seasonally adjusted
1 Total nondeposit funds
2 Net balances due to related foreign offices
3 Borrowings from other than commercial banks
in United States
4 Domestically chartered banks
5 Foreign-related banks
Not seasonally adjusted
Total nondeposit funds
7 Net balances due to related foreign offices . . . .
8 Domestically chartered banks
9 Foreign-related banks
10 Borrowings from other than commercial banks
in United States 4
11 Domestically chartered banks
12
Federal funds and security RP
borrowings
13
Other 6
14 Foreign-related banks 6
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
214.0
8.2
215.2r
13.9
219.4'
19.2
210.0'
8.2
210.9'
5.6
217.3'
9.3
214.6'
6.7
207.4
8.0
210.5
10.7
211.1'
8.0
204.2'
2.9
207.1
.0
205.8
172.0
33.8
201.3
166.9
34.4
200.3
165.8
34.5
201.8
165.8
35.9
205.3
167.1
38.2
208.0
168.7
39.3
207.9
168.9
39.0
199.4
162.4
36.9
199.9
160.7
39.2
203. <r
165.1'
38.0
201.3'
162.8'
38.5
207.1
166.5
40.6
217.1
8.7
-16.3
25.0
210.8'
10.8'
-14.1
24^
218.3'
18.7'
-7.3
26.0'
206.5'
9.2'
-15.7
24^
204.8'
5.2'
-20.5
25.7'
214.1'
10.3'
-19.2
29.5'
209.0'
9.2'
-20.7
29.9'
206.5
7.7
-20.5
28.2
215.3
10.4
-17.9
28.3
216.7'
7.0'
-19.8
26.9
206.8'
.8
-23.1
23.9
214.7
2.6
-22.0
24.6
208.4
173.3
199.9
165.0
199.6'
165.3
197.3
162.1
199.6
162.9'
203.7
167.4
199.8
162.9'
198.9
160.8
204.9
164.4
209.7'
170.2'
206.1'
166.7'
212.1
171.0
168.4
4.8
35.2
159.6
5.4
34.9
160.3
5.0
34.2
157.6
4.4
35.3
158.8
4.1
36.8
162.8
4.6
36.3
159.3
3.5
37.0
157.4
3.4
38.1
161.2
3.2
40.5
166.7'
3.5
39.5
162.4'
4.3
39.4
167.3
3.7
41.0
403.2
401.8
408.4
405.9
414.6
415.1
419.7
421.7
423.2
424.7
424.5
425.6
429.2
429.8
434.9
434.5
440.3
440.2
446.6
448.1
452.7
450.6
456.8
455.5
22.0
21.0
21.3
22.0
17.1
11.9
23.5
24.6
27.2
27.7
23.0
16.3
24.9
22.9
20.3
25.0
20.3
25.9
20.3
18.1
20.9
20.2
27.1
34.3
MEMO
Gross large time deposits
Seasonally adjusted
Not seasonally adjusted
U.S. Treasury demand balances at commercial
banks 8
17 Seasonally adjusted
18 Not seasonally adjusted
15
16
1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus agencies and branches of foreign banks, New
York investment companies majority owned by foreign banks, and Edge Act
corporations owned by domestically chartered and foreign banks.
These data also appear in the Board's G.10 (411) release. For address, see
inside front cover.
2. Includes federal funds, RPs, and other borrowing from nonbanks and net
balances due to related foreign offices.
3. Reflects net positions of U.S. chartered banks, Edge Act corporations, and
U.S. branches and agencies of foreign banks with related foreign offices plus net
positions with own IBFs.
4. Other borrowings are borrowings through 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, loan RPs, and sales of participations in pooled loans.
5. Based on daily average data reported weekly by approximately 120 large
banks and quarterly or annual data reported by other banks.
6. Figures are partly daily averages and partly averages of Wednesday data.
7. Time deposits in denominations of $100,000 or more. Estimated averages of
daily data.
8. U.S. Treasury demand deposits and Treasury tax-and-loan notes at commercial banks. Averages of daily data.
A18
DomesticNonfinancialStatistics • August 1989
Last-Wednesday-of-Month Series1
1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Billions of dollars
1989
Account
July
Aug.
Sept.
Oct.
2,512.1
523.5
332.6
190.8
23.9
1,964.8
159.7
1,805.1
591.0
635.2
343.8
235.0
2,526.3
526.7
335.1
191.6
22.7
1.977.0
156.8
2,524.9
527.0
336.5
190.5
589.0
645.1
348.9
237.2
1,976.7
153.2
1,823.5
589.2
651.0
351.6
231.8
2.541.5
525.0
334.7
190.4
24.9
1.991.6
160.0
1,831.6
591.6
656.3
352.5
231.2
217.1
30.7
26.0
75.5
222.1
33.0
26.6
79.7
215.0
31.1
26.3
76.2
31.3
53.5
31.5
51.3
29.4
52.0
Dec.
Jan.
Feb.
Mar.
Apr.
May
2,581.3
531.3
340.8
190.5
24.8
2,025.2
170.6
1.854.6
598.5
663.1
354.7
238.3
2,592.0
533.0
345.9
187.1
19.2
2.039.7
165.4
1,874.3
606.1
669.3
361.3
237.5
2,576.7
533.3
348.8
184.5
21.5
2,022.0
159.9
2,613.5
535.5
352.9
182.6
20.1
2,057.9
173.0
1,884.9
615.2
677.0
357.3
235.4
2,616.8
538.7
357.1
181.6
2,056.3
154.5
1,901.8
619.5
687.2
357.1
238.1
2.613.0
538.1
358.3
179.8
17.8
2.057.1
150.4
1.906.7
622.9
694.8
361.0
228.0
2.650.0
541.3
360.9
180.4
19.2
2,089.5
160.1
1,929.4
626.7
702.1
363.2
237.5
208.5
31.7
26.4
72.8
235.1
33.8
28.8
89.6
244.4
34.5
30.5
92.0
214.7
31.6
27.6
76.2
226.0
27.8
26.7
210.5
30.9
27.0
75.7
214.2
33.4
27.0
77.8
247.2
27.8
28.0
106.9
29.2
48.4
32.1
50.8
34.3
53.2
27.8
51.5
32.5
50.1
27.9
48.9
27.6
48.4
34.0
50.5
ALL COMMERCIAL BANKING
INSTITUTIONS^
1 Loans and securities
2
Investment securities
3
U.S. government securities
4
Other
5
Trading account assets
6
Total loans
7
Interbank loans
8
Loans excluding interbank
9
Commercial and industrial
10
Real estate
11
Individual
12
All other
13 Total cash assets
14
Reserves with Federal Reserve Banks.
15
Cash in vault
16
Cash items in process of collection . . .
17
Demand balances at U.S. depository
institutions
18
Other cash assets
1.820.1
21.2
1,862.1
602.2
672.2
359.9
227.9
21.8
189.3
188.4
193.4
201.4
201.2
199.4
195.0
191.4
193.3
200.5
206.2
20 Total assets/total liabilities and capital
2,918.5
2,936.8
2,933.3
2.951.3
3.017.7
3.035.8
2,986.4
3,030.8
3,020.6
3.027.8
3,103.4
21
22
23
24
25
26
27
2,052.1
598.9
545.5
907.6
469.2
209.9
187.3
2,075.1
609.9
542.4
922.7
448.7
222.4
190.6
2,060.0
588.5
536.8
934.7
468.3
215.5
189.5
2.069.4
587.4
538.4
943.6
479.5
211.9
190.6
2.122.8
627.7
542.2
952.9
476.7
224.2
193.9
2.142.9
641.5
537.0
964.4
470.9
229.0
193.1
2,093.9
585.5
530.2
978.2
491.8
204.8
195.8
2,121.8
601.4
528.7
991.7
500.9
212.3
195.8
2,120.1
581.9
524.6
1,013.5
482.3
219.9
198.5
2,131.6
594.0
513.3
1,024.3
485.3
211.2
199.6
2,180.9
628.7
511.2
1.041.1
508.7
212.2
350.2
352.0
352.7
354.5
360.3
359.9
365.9
367.8
373.7
371.2
374.1
197.1
197.4
195.5
195.3
195.8
192.3
188.9
187.8
186.8
184.7
186.4
2,322.9
496.3
320.2
176.1
23.9
1.802.7
132.1
1,670.6
492.6
2,332.7
501.2
324.9
176.3
21.2
489.9
631.8
351.2
213.1
2,347.3
499.2
323.4
175.8
24.9
1,823.3
129.6
1,693.6
492.4
636.6
352.2
212.4
2,382.9
505.7
329.6
176.1
24.8
1,852.4
139.4
1,713.1
498.1
642.3
354.4
218.3
2.385.5
508.0
334.9
173.0
19.2
1,858.3
132.2
1,726.1
499.5
648.5
361.0
217.1
2.378.3
507.5
336.3
171.2
21.5
1.849.4
130.6
1.718.7
498.7
651.3
359.6
209.2
2.399.0
509.4
340.0
169.3
20.1
1,869.5
138.2
1,731.3
503.0
655.6
357.0
215.8
2,401.2
513.5
344.7
216.6
2,334.5
499.7
323.2
176.4
22.7
1,812.1
127.8
1,684.3
490.6
626.1
348.5
219.0
21.8
1,865.9
121.2
1,744.7
504.9
665.4
356.8
217.6
2,401.2
514.2
346.1
168.1
17.8
1,869.2
119.2
1,750.1
509.1
672.6
360.7
207.7
2,439.4
516.9
348.1
168.8
19.2
1.903.3
130.3
1,773.0
513.4
679.4
362.9
217.4
197.1
29.6
26.0
75.2
203.5
31.4
26.6
79.4
194.2
29.0
26.3
75.8
190.4
29.9
26.4
72.0
216.0
32.6
28.8
223.2
33.1
30.4
91.2
193.7
30.1
27.6
75.4
206.6
26.6
26.7
87.8
191.7
29.5
26.9
74.9
194.8
30.7
27.0
76.9
227.1
26.7
28.0
105.9
29.5
36.9
29.8
36.4
27.4
35.7
27.3
34.8
30.2
35.5
32.2
36.2
25.9
34.8
30.5
35.1
25.8
26.0
34.3
32.0
34.5
19 Other assets
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
201.6
MEMO
28 U.S. government securities (including
trading account)
29 Other securities (including trading
account)
DOMESTICALLY CHARTERED
COMMERCIAL BANKS 3
30 Loans and securities
31
Investment securities
32
U.S. government securities
33
Other
34
Trading account assets
35
Total loans
36
Interbank loans
37
Loans excluding interbank
38
Commercial and industrial
39
Real estate
40
Individual
41
All other
42 Total cash assets
43
Reserves with Federal Reserve Banks
44
Cash in vault
45
Cash items in process of collection . .
46
Demand balances at U.S. depository
institutions
47
Other cash assets
618.0
343.5
1,810.2
124.2
1,686.0
121.5
123.6
126.7
131.9
132.9
134.9
127.8
129.1
49 Total assets/liabilities and capital
2,641.5
2,661.5
2.653.6
2,669.6
2,731.7
2.743.6
2.699.8
2,734.7
50
51
52
53
54
55
56
1.986.8
590.2
543.0
853.6
359.9
1.992.7
579.4
534.3
879.0
359.0
115.8
186.1
2,001.0
183.9
2,009.0
601.1
539.9
868.0
345.3
120.1
187.2
577.6
535.8
887.6
364.7
116.7
187.2
2,053.0
617.5
539.7
895.8
365.6
122.6
190.5
2,069.9
631.5
534.5
903.9
363.1
120.9
189.7
2,022.6
576.0
527.8
918.8
376.2
108.6
192.4
2.049.1
591.9
526.3
930.9
378.1
115.2
192.4
35.4
582.6
36.3
589.8
37.4
594.4
38.4
598.2
39.5
602.8
40.1
608.4
40.6
610.7
41.4
614.2
48 Other assets
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
111.0
168.8
34.6
134.6
133.6
2,730.6
2,800.0
2.043.6
572.6
522.1
949.0
362.4
121.4
195.1
2,053.5
584.1
510.7
958.6
367.9
113.1
196.2
2.101.4
618.6
508.5
974.2
382.5
118.0
198.2
42.5
622.8
43.4
629.2
44.2
635.2
129.6
2.722.5
MEMO
57 Real estate loans, revolving
58 Real estate loans, other
1. Back data are available from the Banking and Monetary Statistics section,
Board of Governors of the Federal Reserve System, Washington, D.C., 20551.
These data also appear in the Board's weekly H.8 (510) release.
Figures are partly estimated. They include all bank-premises subsidiaries and
other significant majority-owned domestic subsidiaries. Loan and securities data
for domestically chartered commercial banks are estimates for the last Wednesday of the month based on a sample of weekly reporting banks and quarter-end
condition report data. Data for other banking institutions are estimates made for
the last Wednesday of the month based on a weekly reporting sample of
foreign-related institutions and quarter-end condition reports.
2. Commercial banking institutions include insured domestically chartered
commercial banks, branches and agencies of foreign banks, Edge Act and
Agreement corporations, and New York State foreign investment corporations.
3. Insured domestically chartered commercial banks include all member banks
and insured nonmember banks.
Weekly Reporting Commercial Banks
A19
1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS 1
Millions of dollars, Wednesday figures
1989
Account
May 10
May 17
May 24
May 31
108,674
114,789
111,460
107,682
1,184,455' 1,197,576' 1,187,151' 1,202,577
136,081'
134,107
135,676
135,318'
15,554
12,904
13,912
14,518'
121,764
120,799'
120,527'
121,203
51,082
50,051'
50,242'
50,637'
101,145
1,187,776
135,412
13,280
122,133
51,113
111,852
1,201,383
138,365
15,571
122,794
51,397
99,936
1,196,428
139,978
15,202
124,776
53,554
126,800
1,213,512
137,223
13,216
124,006
53,590
21,274
22,731
21,499'
21,409'
22,488
41,204'
41,893
40,340
40,647'
41,733'
7,635
7,514
7,613'
7,582'
7,423'
71,669
71,886
71,670
71,563
71,713
1,182
1,057
1,031
1,093
898
70,704
70,576
70,773
70,506
70,682
44,548
44,708
44,692
44,501
44,752
4,934
5,005'
4,989
4,993
5,024
39,477
39,614
39,703'
39,699
39,763
26,075
26,157
26,020
25,798
25,990
4,019
3,891
3,936
4,158
4,229
79,128
75,811'
79,567
70,839
78,890
45,614
50,332
52,244
47,438
54,801
20,415
16,951
20,103
21,919'
16,599
8,693
8,278
6,908
6,802
7,138
939,056
945,671
944,671
950,639
936,739'
926,039
914,623
912,239'
921,180'
920,194
311,774'
317,884
312,526
314,122'
314,889
1,664
1,626
1,598
1,714
1,740
316,144
310,900
310,110'
312,524'
313,175
309,083
310,778'
314,206
308,288'
311,393
1,937
1,817
1,822'
1,746
1,782
322,288
319,222
321,281
321,976
319,731
23,650
23,942
23,333
23,406
23,850
298,346
295,889
296,326
297,631
298,126
167,940
168,097'
168,789'
169,193
169,536'
42,819
44,155
43,119'
44,400
42,888'
20,230
19,557
19,452
20,277
19,311
3,545
3,487'
3,641
3,261
3,430
20,284
20,000
20,237
20,578
20,090
..
14,468
13,552
15,395
14,102
14,940
5,522
5,538
5,561
5,584
5,581
27,375
27,482
27,317'
27,436'
27,436'
1,842
1,887
1,860
1,859
1,969
22,784
21,133'
21,815'
22,736
22,472'
24,433
24,491'
24,477
24,600
24,500'
4,898
4,915
4,921'
4,933'
4,928'
33,337
34,516
34,391
34,393
33,144
912,404
899,625
897,427'
906,346'
906,600'
135,169
133,802'
136,908'
129,599
132,145
1,435,852 1,426,932' 1,445,944' 1,424,432' 1,449,511
229,729
234,249
223,940'
231,148
220,021
177,649
183,719
180,206'
182,031'
174,716
5,496
6,064
6,247
7,860
5,463
5,779
3,751
7,469
6,491
4,649
21,154
22,074
19,650
19,754
18,567
6,134
6,837
5,709
5,748
6,262
688
721
788
741
672
9,656
8,440
9,294'
8,838
9,769
79,921
79,914'
83,069'
77,604'
76,512
669,054
671,963
671,626'
668,246'
667,345'
630,634
630,134'
626,624'
626,071'
627,726
32,104
31,955
31,773
32,236
31,945
974
967
958
971
972
7,923
7,754
7,756
7,738
7,742
659
666
670
620
659
..
288,844
267,308
267,118'
279,873
275,866
6,157
1,632
2,240
2,010
1,150
25,598
370
2,143
21,011
25,359'
264,697
261,614
262,966'
252,706
249,357'
84,115
85,028'
84,676'
85,962
84,806'
..
1,337,555 1,327,627' 1,347,012' 1,325,642' 1,350,100
99,411
98,297
99,305
98,931
98,790
21,208
41,942
7,869
71,770
1,046
70,725
44,440
4,974
39,467
26,284
3,989
67,122
45,932
15,361
5,828
947,769
923,165
316,780
1,806
314,974
313,074
1,901
323,282
24,113
299,169
169,142
44,375
20,180
4,194
20,001
13,561
5,592
27,264
1,929
21,238
24,604
4,938
33,348
909,482
132,729
1,421,650
213,972
172,058
5,674
2,886
19,076
5,707
816
7,755
73,950
670,246
628,575
32,341
937
7,764
629
278,253
1,035
25,696
251,522
85,298
1,321,721
99,929
20,790
42,462
8,144
71,728
834
70,894
44,433
4,956
39,477
26,461
4,090
71,708
48,988
15.901
6,819
953,824
929,266
316,888
1,681
315,207
313,302
1,905
324,666
24,217
300,450
169,252
46,047
21,438
3,910
20,698
14,243
5,688
27,233
2,119
23,130
24,558
4,948
33,384
915,492
131,166
1,444,402
222,228
179,074
5,744
1,645
20,634
5,801
1,039
8,292
73,531
673,458
631,269
32,842
935
7,750
661
292,780
1,060
25,696
266,024
82,244
1,344,241
100,161
20,547
42,391
8,284
72,076
923
71,152
44,439
4,961
39,478
26,714
4,153
66,824
42,626
16,466
7,732
951,740
927,126
316,749
1,748
315,000
312,987
2,014
324,880
24,314
300,566
169,451
45,082
21,005
4,122
19,955
13,654
5,672
27,158
1,969
22,510
24,615
4,960
33,383
913,397
129,339
1,425,703
209,927
168,217
5,454
3,435
18,504
6,048
622
7,646
72,482
673,368
631,507
32,663
930
7,568
701
284,177
985
24,373
258,819
85,317
1,325,271
100,432
21,031
41,184
8,202
72,667
1,138
71,529
44,473
5,051
39,422
27,057
4,829
77,108
51,929
18,223
6,956
960,070
935,462
318,067
1,978
316,089
314,130
1,959
325,528
24,423
301,104
169,681
47,523
21,350
4,783
21,390
15,608
5,686
27,144
1,840
24,384
24,608
4,920
33,465
921,685
131,337
1,471,648
244,114
189,983
5,894
2,678
8,515
669
10,378
74,271
673,096
631,788
32,310
922
7,420
657
289,130
1,349
21,700
266,081
90,394
1,371,007
100,641
1,159,950
948,778
215,464
19,174
1,839
1,544
295
245,6%
1,169,288
955,106
216,357
19,388
1,877
1,555
322
246,665
1,171,141
954,933
216,914
19,552
1,926
1,618
308
245,452
1,178,618
963,899
215,385
19,392
1,775
1,466
309
246,395
Apr. 5'
1 Cash and balances due from depository institutions
2 Total loans, leases, and securities, net
3 U.S. Treasury and government agency
4 Trading account
5 Investment account
6 Mortgage-backed securities
All other maturing in
7
One year or less
8
Over one through five years
9
Over five years
10 Other securities
11 Trading account
12 Investment account
States and political subdivisions, by maturity
13
14
One year or less
15
Over one year
16
Other bonds, corporate stocks, and securities
17 Other trading account assets
18 Federal funds sold4
19 To commercial banks
20 To nonbank brokers and dealers in securities
21 To others
22 Other loans and leases, gross
23 Other loans, gross
24
Commercial and industrial
25
Bankers acceptances and commercial paper
26
All other
27
U.S. addressees
28
Non-U.S. addressees
29
Real estate loans
30
Revolving, home equity
31
All other
32
To individuals for personal expenditures
33
To depository and financial institutions
34
Commercial banks in the United States
35
Banks in foreign countries
36
Nonbank depository and other financial institutions
37
For purchasing and carrying securities
38
To finance agricultural production
39
To states and political subdivisions
40
To foreign governments and official institutions
41
All other
42 Lease financing receivables
43 LESS: Unearned income
44
Loan and lease reserve
45 Other loans and leases, net
46 All other assets
47 Total assets
48 Demand deposits
49 Individuals, partnerships, and corporations
50 States and political subdivisions
51 U.S. government
52 Depository institutions in the United States
53 Banks in foreign countries
54 Foreign governments and official institutions
55 Certified and officers' checks
56 Transaction balances other than demand deposits
57 Nontransaction balances
58 Individuals, partnerships, and corporations
59 States and political subdivisions
60 U.S. government
61 Depository institutions in the United States
62 Foreign governments, official institutions, and banks
63 Liabilities for borrowed money
64 Borrowings from Federal Reserve Banks
65 Treasury tax-and-loan notes
66 All other liabilities for borrowed money
67 Other liabilities and subordinated notes and debentures
68 Total liabilities
69 Residual (total assets minus total liabilities)7
MEMO
70 Total loans and leases (gross) and investments adjusted
71 Total loans and leases (gross) adjusted
72 Time deposits in amounts of $100,000 or more
73 U.S. Treasury securities maturing in one year or less
74 Loans sold outright to affiliates—total
75 Commercial and industrial
76 Other
77 Nontransaction savings deposits (including MMDAs)
108,707
1,191,976
137,179
16,532
120,648
49,941
Apr. 12
Apr. 26
. 1,161,519 1,158,701' 1,164,381' 1,158,473
947,484'
952,718
948,295
948,761
214,981'
213,084'
213,872'
215,403
21,202
20,069'
20,931'
18,652'
1,915
1,812
1,893
1,871
1,605
1,623
1,514
1,573
288
292
298
298
254,221
252,830'
249,759'
246,999'
1. Beginning Jan. 6, 1988, the "Large bank" reporting group was revised
somewhat, eliminating some former reporters with less than $2 billion of assets
and adding some new reporters with assets greater than $3 billion.
2. For adjustment bank data see this table in the March 1989 Bulletin. The
adjustment data for 1988 should be added to the reported data for 1988 to establish
comparability with data reported for 1989.
3. Includes U.S. government-issued or guaranteed certificates of participation
in pools of residential mortgages.
4. Includes securities purchased under agreements to resell.
5. Includes allocated transfer risk reserve.
Apr. 19
May 3
1,165,780
954,498
214,705
19,122
1,870
1,575
295
246,320
25,996
6. Includes federal funds purchased and securities sold under agreements to
repurchase; for information on these liabilities at banks with assets of $1 billionor
more on Dec. 31, 1977, see table 1.13.
7. This is not a measure of equity capital for use in capital-adequacy analysis or
for other analytic uses.
8. Exclusive of loans and federal funds transactions with domestic commercial
banks.
9. Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
A20
DomesticNonfinancialStatistics • August 1989
1.28 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS
IN NEW YORK CITY1
Millions of dollars, Wednesday figures
1989
Account
Apr. 5
1 Cash balances due from depository institutions
2 Total loans, leases and securities, net 2
Securities
3 U.S. Treasury and government agency
4
Trading account 3
5
Investment account
6
Mortgage-backed securities
All other maturing in
One year or less
7
Over one through five years
8
9
Over five years
10 Other securities
11
Trading account 3
12
Investment account
13
States and political subdivisions, by maturity
14
One year or less
Over one year
15
Other bonds, corporate stocks, and securities
16
17 Other trading account assets 3
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Loans and leases
Federal funds sold
To commercial banks
To nonbank brokers and dealers in securities
T o others
Other loans and leases, gross
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
Real estate loans
Revolving, home equity
All other
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
T o 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 6
All other assets
47 Total assets
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
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 8
Other liabilities and subordinated notes and debentures
68 Total liabilities
69 Residual (total assets minus total liabilities) 9
MEMO
70
71
72
73
Total loans and leases (gross) and investments adjusted
Total loans and leases (gross) adjusted 1 0
Time deposits in amounts of $100,000 or more
U.S. Treasury securities maturing in one year or less
2,10
Apr. 19
Apr. 26
May 3
May 10
May 17
May 24
May 31
22,066''
20,343
21,720
22,546
25,562
20,527
22,828
21,252
28,490
216,668'
216,574'
217,197'
213,418
215,490
208,549
215,583
212,905
222,681
0
0
15,419'
7,256 r
0
0
15,400'
7,246'
0
0
15,265'
7,247'
0
0
15,062
7,227
0
0
14,962
7,240
0
0
15,056
7,242
0
0
15,530
7,257
0
0
15,704
7,263
0
0
15,244
7,237
2,791
3,514
1,857
0
0
17,466
11,954
1,120
10,834
5,512
0
2,793
3,504
1,857
0
0
17,572
12,089
1,138
10,951
5,483
0
2,699
3,497
1,822
0
0
17,329
12,081
1,143
10,937
5,248
0
2,660
3,496
1,679
0
0
17,454
12,052
1,147
10,905
5,402
0
2,564
3,488
1,670
0
0
17,436
12,018
1,168
10,850
5,418
0
2,758
3,371
1,685
0
0
17,549
12,042
1,170
10,872
5,507
0
2,659
3,900
1,714
0
0
17,589
12,001
1,166
10,835
5,588
0
2,712
4,029
1,700
0
0
17,710
11,997
1,162
10,835
5,713
0
2,804
3,500
1,703
0
0
17,777
11,990
1,161
10,828
5,787
0
28,558 r
11,705
11,246r
5,607
169,810
164,007
57,663
315
57,348
56,821
527
51,455
3,357
48,098
19,656'
16,619
7,999
2,006
6,614
5,912
157
6,074
499
5,971'
5,803
1,602
12,983
155,225
62,034'
29,246'
10,426
13,484'
5,336
168,864
163,034
57,715
385
57,330
56,764
567
51,482
3,372
48,110
19,650
16,901
7,828
2,102
6,971
5,384
151
6,037
484
5,229
5,830
1,607
12,901
154,356
59,857'
26,660
10,982
11,441
4,236
172,492
166,643
58,070
297
57,773
57,232
541
51,610
3,395
48,216
19,790
17,867
8,521
2,157
7,189
6,785
158
6,036
522
5,804
5,849
1,620
12,929
157,943
63,259'
23,990
11,056
8,587
4,347
171,480
165,641
58,633
382
58,251
57,675
576
51,684
3,422
48,262
19,863
17,372
8,067
2,139
7,166
5,875
167
6,032
610
5,404
5,840
1,623
12,944
156,913
58,065
25,116
13,184
7,873
4,058
172,527
166,693
59,277
325
58,952
58,321
631
51,679
3,441
48,238
19,368
17,509
8,212
2,195
7,102
6,395
161
6,034
520
5,749
5,834
1,610
12,940
157,977
59,369
20,683
10,006
7,440
3,236
169,905
164,070
58,600
355
58,245
57,606
639
51,750
3,449
48,300
19,368
17,402
7,992
2,796
6,614
5,271
174
6,015
583
4,907
5,835
1,634
13,010
155,261
59,792
23,787
12,567
7,504
3,716
173,337
167,591
59,230
303
58,926
58,309
617
52,022
3,461
48,561
19,331
18,463
8,860
2,544
7,059
5,660
194
6,001
753
5,936
5,746
1,648
13,013
158,677
61,784
22,312
9,039
8,614
4,658
171,859
166,120
59,431
355
59,076
58,393
683
52,139
3,469
48,669
19,366
17,953
8,444
2,798
6,711
5,033
170
5,975
605
5,447
5,739
1,656
13,024
157,179
58,636
27,529
13,687
9,708
4,134
176,814
171,076
60,169
422
59,747
59,118
629
52,240
3,479
48,761
19,347
20,126
9,204
3,323
7,598
6,165
158
5,982
480
6,408
5,737
1,641
13,041
162,131
57,284
300,768'
296,774'
302,175
294,029
300,421
288,868
300,195
292,793
308,455
53,590'
36,801'
617
1,062
5,414
5,432
529
3,735
47,493'
33,806'
464
693
4,640
4,492
596
2,801
51,844
37,015
510
1,280
4,643
4,496
654
3,245
49,596
34,692
505
1,176
4,611
5,029
597
2,984
50,670
34,056
1,379
1,215
5,009
4,880
521
3,610
47,475
33,792
550
504
4,6%
4,487
675
2,770
50,746
36,203
487
227
5,198
4,588
868
3,174
46,512
32,714
493
670
4,674
4,814
488
2,658
58,706
38,911
625
478
6,745
7,040
530
4,376
9,022
114,114
104,093
7,763
24
1,990
243
68,137'
0
1
68,136'
27,973'
9,179
112,866
102,752
7,910
27
1,936
241
69,71C
0
357
69,353'
29,200'
9,791
112,546
102,298
7,967
29
1,998
254
71,274
3,675
5,561
62,038
28,459
8,919
112,789
102,901
7,644
28
2,003
213
66,083
0
6,531
59,552
28,620
8,544
112,910
102,964
7,673
24
1,996
251
70,191
0
6,202
63,990
29,935
8,261
112,666
102,493
7,921
25
2,015
212
63,324
0
6,201
57,123
28,669
8,207
113,069
102,610
8,155
29
2,026
249
72,879
0
6,082
66,798
26,686
8,113
113,557
103,061
8,178
28
2,005
284
67,597
0
5,726
61,871
28,482
8,236
113,778
103,405
8,095
29
2,000
249
65,776
0
5,381
60,395
33,420
272,836 r
268,449'
273,914
266,007
272,249
260,395
271,587
264,261
279,916
27,932
28,325
28,261
28,022
28,172
28,472
28,608
28,532
28,539
211,549'
178,664'
42,908'
3,692
212,828'
179,856'
42,376'
3,800
212,242'
179,648
42,561'
3,055
208,862
176,347
42,854'
2,772
208,645
176,247
42,681
3,253
205,195
172,590
42,571
3,165
208,817
175,698
43,144
3,114
210,102
176,688
43,199
3,239
214,472
181,452
43,084
2,950
1. These data also appear in the Board's H.4.2 (504) release. For address, see
inside front cover.
2. Excludes trading account securities.
3. Not available due to confidentiality.
4. Includes U.S. government-issued or guaranteed certificates of participation
in pools of residential mortgages.
5. Includes securities purchased under agreements to resell.
FRASER
6. Includes allocated transfer risk reserve.
Digitized for
Apr. 12
7. Includes trading account securities.
8. Includes federal funds purchased and securities sold under agreements to
repurchase.
9. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
10. Exclusive of loans and federal funds transactions with domestic commercial banks.
Weekly Reporting Commercial Banks
1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS 1
Liabilities
A21
Assets and
Millions of dollars, Wednesday figures
1989
Account
1 Cash and due from depository institutions . . .
2 Total loans and securities
3 U.S. Treasury and government agency
securities
4 Other securities
5 Federal funds sold2
6 To commercial banks in the United States.
7 To others
8 Other loans, gross
9 Commercial and industrial
10
Bankers acceptances and commercial
paper
11
All other
U.S. addressees
12
Non-U.S. addressees
13
14 Loans secured by real estate
15 To financial institutions
Commercial banks in the United States..
16
Banks in foreign countries
17
Nonbank financial institutions
18
19 To foreign governments and official
institutions
20 For purchasing and carrying securities
21 All other 3
22 Other assets (claims on nonrelated parties) . .
23 Net due from related institutions
24 Total assets
25 Deposits or credit balances due to other
than directly related institutions
26 Transaction accounts and credit balances .
Individuals, partnerships, and
27
corporations
Other
28
29 Nontransaction accounts
Individuals, partnerships, and
30
corporations
Other
31
Borrowings from other than directly
32
related institutions
33 Federal funds purchased
From commercial banks in the
34
United States
35
From others
36 Other liabilities for borrowed money
37
To commercial banks in the
United States
38
To others
39 Other liabilities to nonrelated parties
40 Net due to related institutions
41 Total liabilities
MEMO
42 Total loans (gross) and securities adjusted . .
43 Total loans (gross) adjusted
Apr. 5
Apr. 12
Apr. 19
Apr. 26
May 3
May 10
May 17
May 24
May 31
10,540
129,088
10,614
127,266
11,210
131,007
11,005
130,663
13,042
132,100
10,534
130,967
11,398
132,963
11,026
131,5%
11,420
130,213
8,092
6,952'
6,760
5,728
1,032
107,284'
70,507
8,137
6,632
5,453
4,146
1,307
107,044
69,661
8,890
6,212
7,310
5,759
1,551
108,595
71,218
8,473
6,213
7,325
5,863
1,462
108,652
71,407
9,006
6,190
7,216
6,061
1,155
109,688
71,777
8,591
6,184
6,598
5,448
1,150
109,594
71,150
8,580
6,200
8,223
6,737
1,486
109,960
71,410
8,687
6,042
6,815
5,582
1,233
110,052
71,007
8,863
6,137
5,500
4,489
1,011
109,713
71,241
1,683
68,824
67,253
1,571
14,253'
18,387
13,398
1,389
3,600
1,543
68,118
66,593
1,525
14,593
18,817
14,013
1,302
3,502
1,698
69,520
67,723
1,797
14,365
18,728
13,687
1,396
3,645
1,594
69,813
68,184
1,629
14,512
18,991
13,967
1,547
3,477
1,773
70,004
68,366
1,638
14,581
19,679
14,600
1,612
3,467
1,858
69,292
67,532
1,760
14,770
19,832
14,876
1,555
3,401
1,794
69,616
67,918
1,698
14,814
19,776
15,122
1,434
3,220
1,761
69,246
67,543
1,703
14,728
20,505
15,564
1,611
3,330
1,648
69,593
67,894
1,699
14,691
19,894
14,492
1,944
3,458
744
1,956
1,437
30,672
17,368
187,670
835
1,691
1,447
31,532
14,749
184,163
800
1,944
1,540
31,306
15,173
188,697
822
1,544
1,376
31,596
14,860
188,124
709
1,622
1,320
32,266
14,494
191,903
818
1,607
1,417
32,488
16,677
190,667
741
1,581
1,638
32,368
15,349
192,078
746
1,576
1,490
32,351
14,506
189,480
692
1,563
1,632
32,669
18,293
192,5%
47,684
3,308
47,774
3,398
48,275
3,301
48,668
4,005
48,340
3,344
48,262
3,198
48,279
3,329
48,246
3,421
48,523
3,609
2,082
1,226
44,376
2,114
1,284
44,376
2,013
1,288
44,974
2,711
1,294
44,663
1,944
1,400
44,9%
2,004
1,194
45,064
1,940
1,389
44,950
1,837
1,584
44,825
2,107
1,502
44,914
37,370
7,006
37,595
6,781
38,229
6,745
37,979
6,684
38,160
6,836
38,104
6,960
37,980
6,970
37,700
7,125
37,852
7,062
84,883
41,775
79,769
35,238
85,717
39,636
77,834
32,094
82,064
35,819
83,826
37,062
83,056
36,398
83,517
38,489
83,5%
38,550
26,694
15,081
43,108
19,155
16,083
44,531
23,994
15,642
46,081
16,185
15,909
45,740
18,977
16,842
46,245
19,931
17,131
46,764
20,222
16,176
46,658
18,740
19,749
45,028
21,099
17,451
45,046
27,956
15,152
31,158
23,944
187,670
29,492
15,039
31,885
24,735
184,163
30,353
15,728
32,279
22,425
188,697
30,225
15,515
33,188
28,434
188,124
31,212
15,033
33,479
28,020
191,903
31,695
15,069
33,773
24,804
190,667
31,198
15,460
33,581
27,160
192,078
29,833
15,195
33,196
24,520
189,480
29,517
15,529
33,782
26,694
192,5%
109,962
94,918'
109,107
94,338
111,561
96,459
110,833
96,147
111,439
96,243
110,643
95,868
111,104
96,324
110,450
95,721
111,232
%,232
1. Effective Jan. 4, 1989, the reporting panel includes a new group of large U.S.
branches and agencies of foreign banks. Earlier data included 65 U.S. branches
and agencies of foreign banks that included those branches and agencies with
assets of $750 million or more on June 30, 1980, plus those branches and agencies
that had reached the $750 million asset level on Dec. 31, 1984. These data also
appear in the Board's H.4.2 (504) release. For address, see inside front cover.
2. Includes securities purchased under agreements to resell.
3. Effective Jan. 4, 1989, loans secured by real estate are being reported as a
separate component of Other loans, gross. Formerly, these loans were included in
"All other", line 21.
4. Includes credit balances, demand deposits, and other checkable deposits.
5. Includes savings deposits, money market deposit accounts, and time
deposits.
6. Includes securities sold under agreements to repurchase.
7. Exclusive of loans to and federal funds sold to commercial banks in the
United States.
A22
DomesticNonfinancialStatistics • August 1989
1.31 GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations'
Billions of dollars, estimated daily-average balances, not seasonally adjusted
Commercial banks
1987
Type of holder
1983
Dec.
1984
Dec.
1985
Dec.
1989
1988
1986
Dec.
Dec.
Mar.
June
Sept.
Dec.
Mar.
1 All holders—Individuals, partnerships, and
corporations
293.5
302.7
321.0
363.6
343.5
328.6
346.5
337.8
354.7
n.a.
2
3
4
5
6
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
41.4
202.0
91.1
3.3
25.8
36.3
191.9
90.0
3.4
21.9
33.9
184.1
86.9
3.5
20.3
37.2
194.3
89.8
3.4
21.9
34.8
190.3
87.8
3.2
21.7
38.6
201.2
88.3
3.7
22.8
n.a.
n.a.
n.a.
n.a.
n.a.
Financial business
Nonfinancial business
Consumer
Foreign
Other
Weekly reporting banks
1987
1983
Dec.
7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
1984
Dec.
1988
1989
1986
Dec.
Dec.
Mar.
June
Sept.
Dec.
Mar.
146.2
157.1
168.6
195.1
183.8
181.8
191.5
185.3
198.3
181.9
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
32.5
106.4
37.5
3.3
15.4
28.6
100.0
39.1
3.3
12.7
27.0
98.2
41.7
3.4
11.4
30.0
103.1
42.3
3.4
12.8
27.2
101.5
41.8
3.1
11.7
30.5
108.7
42.6
3.6
12.9
27.2
98.6
41.1
3.3
11.7
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
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.
1985
Dec.
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 .
5. Beginning March 1988, 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 1987 based on the new weekly reporting panel are: financial
business, 29.4; nonfinancial business, 105.1; consumer, 41.1; foreign, 3.4; other,
13.1.
Financial Markets
A23
1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1989
1988
1984
Dec.
Instrument
1985
Dec.
1986
Dec.
1987
Dec.
1988
Dec.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
2
3
4
5
6
Financial companies1
Dealer-placed paper
Total
Bank-related (not seasonally
adjusted)
Directly placed paper
Total
Bank-related (not seasonally
adjusted)
^
Nonfinancial companies
237,586
298,779
329,991
357,129
455,017
443,531
455,017
471,066
487,771
492,821
494,292
56,485
78,443
101,072
101,958
159,947
157,042
159,947
162,884
173,944
172,950
170,549
2,035
1,602
2,265
1,428
1,248
995
1,248
n.a.
n.a.
n.a.
n.a.
110,543
135,320
151,820
173,939
192,442
192,220
192,442
199,828
201,997
205,374
207,231
42,105
70,558
44,778
85,016
40,860
77,099
43,173
81,232
43,155
102,628
43,729
94,269
43,155
102,628
n.a.
108,354
n.a.
111,830
n.a.
114,497
n.a.
116,512
Bankers dollar acceptances (not seasonally adjusted) 6
7 Total
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others
Basis
14 Imports into United States
15 Exports from United States
16 All other
8
9
10
11
12
13
78,364
68,413
64,974
70,565
66,631
65,961
66,631
62,212
62,812
62,458
64,357
9,811
8,621
1,191
11,197
9,471
1,726
13,423
11,707
1,716
10,943
9,464
1,479
9,086
8,022
1,064
9,483
8,768
715
9,086
8,022
1,064
9,009
7,927
1,082
9,401
8,497
904
8,336
7,642
693
9,623
8,107
1,516
0
671
67,881
0
937
56,279
0
1,317
50,234
0
965
58,658
0
1,493
56,052
0
1,393
55,086
0
1,493
56,052
0
1,596'
51,608
0
1,579
51,832
0
1,544
52,579
0
1,400
53,334
17,845
16,305
44,214
15,147
13,204
40,062
14,670
12,960
37,344
16,483
15,227
38,855
14,984
14,410
37,237
14,959
14,578
36,424
14,984
14,410
37,237
14,917
13,813
33,482
15,588
13,927
33,297
14,755
13,581
34,122
15,234
14,371
34,752
1. 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.
2. Includes all financial company paper sold by dealers in the open market.
3. Beginning January 1989, bank-related series have been discontinued.
4. As reported by financial companies that place their paper directly with
investors.
5. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
6. Beginning January 1988, the number of respondents in the bankers acceptance survey were reduced from 155 to 111 institutions—those with $100 million
or more in total acceptances. The new reporting group accounts for over 90
percent of total acceptances activity.
1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per year
Period
Rate
9.00
8.50
8.00
7.50
7.75
8.00
8.25
8.75
9.25
9.00
8.75
8.50
9.00
9.50
Average
rate
1986
1987
1988
8.33
8.21
9.32
1986 —Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
9.50
9.50
9.10
8.83
8.50
8.50
8.16
7.90
7.50
7.50
7.50
7.50
10.00
10.50
11.00
11.50
11.00
NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases.
For address, see inside front cover.
Period
1987 —Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Average
rate
7.50
7.50
7.50
7.75
8.14
8.25
8.25
8.25
8.70
9.07
8.78
8.75
Period
1988 —Jan.
Feb.
Mar.
Apr.
May.
June.
July.
Aug.
Sept.
Oct..
Nov.
Dec.
1989 —Jan.
Feb.
Mar.
Apr.
May.
June.
A24
DomesticNonfinancialStatistics • August 1989
1.35 INTEREST RATES Money and Capital Markets
Averages, percent per year; weekly, monthly and annual figures are averages of business day data unless otherwise noted.
1989
Instrument
1986
1987
1989, week ending
1988
Feb.
Mar.
Apr.
May
Apr. 28
May 5
May 12
May 19
May 26
MONEY MARKET RATES
1 Federal funds 1,2
2 Discount window borrowing1, ,3
Commercial paper '
1-month
3
4 3-month
5 6-month
Finance paper, directly placed 4.
6
1-month
7 3-month
8 6-month
Bankers acceptances ,6
9 3-month
10 6-month
Certificates of deposit, secondary market 7
11
1-month
12 3-month
13 6-month
14 Eurodollar deposits, 3-month8
U.S. Treasury bills5
Secondary market 9
15 3-month
16 6-month
17
1-year
Auction average
18 3-month
19 6-month
20
1-year
6.80
6.32
6.66
5.66
7.57
6.20
9.36
6.59
9.85
7.00
9.84
7.00
9.81
7.00
9.86
7.00
9.88
7.00
9.86
7.00
9.75
7.00
9.74
7.00
6.61
6.49
6.39
6.74
6.82
6.85
7.58
7.66
7.68
9.29
9.37
9.35
9.88
9.95
9.97
9.77
9.81
9.78
9.58
9.47
9.29
9.72
9.72
9.65
9.70
9.69
9.59
9.66
9.59
9.46
9.50
9.37
9.16
9.47
9.29
9.06
6.57
6.38
6.31
6.61
6.54
6.37
7.44
7.38
7.14
9.21
9.11
8.65
9.77
9.70
9.17
9.70
9.70
9.29
9.48
9.27
8.97
9.64
9.63
9.23
9.62
9.56
9.20
9.58
9.41
9.19
9.40
9.15
8.81
9.37
9.04
8.76
6.38
6.28
6.75
6.78
7.56
7.60
9.27
9.26
9.83
9.87
9.68
9.63
9.35
9.15
9.60
9.50
9.57
9.43
9.45
9.27
9.26
9.03
9.18
8.95
6.61
6.51
6.50
6.71
6.75
6.87
7.01
7.06
7.59
7.73
7.91
7.85
9.33
9.51
9.71
9.61
9.91
10.09
10.40
10.18
9.81
9.94
10.13
10.04
9.61
9.59
9.60
9.66
9.75
9.84
9.96
9.98
9.76
9.83
9.89
9.89
9.69
9.72
9.75
9.85
9.52
9.49
9.48
9.64
9.49
9.41
9.38
9.46
5.97
6.02
6.07
5.78
6.03
6.33
6.67
6.91
7.13
8.53
8.55
8.55
8.82
8.85
8.82
8.65
8.65
8.64
8.43
8.41
8.31
8.53
8.59
8.52
8.54
8.52
8.47
8.43
8.42
8.36
8.30
8.33
8.23
8.41
8.39
8.21
5.98
6.03
6.18
5.82
6.05
6.33
6.68
6.92
7.17
8.48
8.49
8.59
8.83
8.87
8.68
8.70
8.73
8.75
8.40
8.39
8.44
8.66
8.72
n.a.
8.64
8.64
n.a.
8.41
8.39
8.44
8.21
8.19
n.a.
8.32
8.33
n.a.
6.45
6.86
7.06
7.30
7.54
7.67
7.84
7.78
6.77
7.42
7.68
7.94
8.23
8.39
n.a.
8.59
7.65
8.10
8.26
8.47
8.71
8.85
n.a.
8.96
9.25
9.37
9.32
9.27
9.23
9.17
n.a.
9.01
9.57
9.68
9.61
9.51
9.43
9.36
n.a.
9.17
9.36
9.45
9.40
9.30
9.24
9.18
n.a.
9.03
8.98
9.02
8.98
8.91
8.88
8.86
n.a.
8.83
9.22
9.33
9.26
9.16
9.13
9.09
n.a.
8.95
9.16
9.22
9.18
9.09
9.07
9.07
n.a.
8.97
9.05
9.11
9.08
9.06
9.06
9.05
n.a.
9.02
8.89
8.95
8.90
8.86
8.81
8.79
n.a.
8.80
8.86
8.86
8.82
8.73
8.67
8.63
n.a.
8.63
8.14
8.64
8.98
9.16
9.33
9.18
8.95
9.10
9.11
9.14
8.90
8.74
6.95
7.76
7.32
7.14
8.17
7.63
7.36
7.83
7.68
7.23
7.59
7.44
7.40
7.78
7.59
7.37
7.82
7.49
7.22
7.66
7.25
7.28
7.80
7.40
7.28
7.75
7.36
7.25
7.70
7.36
7.21
7.62
7.18
7.13
7.58
7.11
9.71
9.02
9.47
9.95
10.39
9.91
9.38
9.68
9.99
10.58
10.18
9.71
n.a.
10.24
10.83
10.05
9.64
9.83
10.13
10.61
10.18
9.80
9.98
10.26
10.67
10.14
9.79
9.94
10.20
10.61
9.97
9.59
9.77
10.01
10.48
10.11
9.75
9.92
10.16
10.59
10.08
9.73
9.88
10.14
10.57
10.05
9.69
9.85
10.08
10.57
9.93
9.54
9.73
9.98
10.46
9.80
9.41
9.63
9.85
10.32
9.61
9.95
n.a.
10.25
10.37
10.33
n.a.
10.22
10.26
10.13
10.03
9.94
8.76
3.48
8.37
3.08
9.23
3.64
9.31
3.59
9.43
3.68
9.50
3.59
9.32
3.52
9.48
3.56
9.46
3.56
9.39
3.60
9.32
3.49
9.19
3.48
CAPITAL MARKET RATES
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
U.S. Treasury notes and bonds 11
Constant maturities
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
Composite13
Over 10 years (long-term)
State and local notes and bonds
Moody's series14
Aaa
Baa
Bond Buyer
series15
Corporate bonds
Seasoned issues16
All industries
Aaa
Aa
A
Baa
A-rated, recently offered utility
bonds 17
MEMO: Dividend/price ratio18
39 Preferred stocks
40 Common stocks
1. Weekly, monthly and annual figures are averages of all calendar days,
where the rate for a weekend or holiday is taken to be the rate prevailing on the
preceding business day. The daily rate is the average of the rates on a given day
weighted by the volume of transactions at these rates.
2. Weekly figures are averages for statement week ending Wednesday.
3. Rate for the Federal Reserve Bank of New York.
4. Unweighted average of offering rates quoted by at least five dealers (in the
case of commercial paper), or finance companies (in the case of finance paper).
Before November 1979, maturities for data shown are 30-59 days, 90-119 days,
and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and
150-179 days for finance paper.
5. Yields are quoted on a bank-discount basis, rather than in an investment
yield basis (which would give a higher figure).
6. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quoted by the dealers).
7. Unweighted average of offered rates quoted by at least five dealers early in
the day.
8. Calendar week average. For indication purposes only.
9. Unweighted average of closing bid rates quoted by at least five dealers.
10. Rates are recorded in the week in which bills are issued. Beginning with the
Treasury bill auction held on Apr. 18, 1983, bidders were required to state the
percentage yield (on a bank discount basis) that they would accept to two decimal
places. Thus, average issuing rates in bill auctions will be reported using two
rather than three decimal places.
11. Yields are based on closing bid prices quoted by at least five dealers.
12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields
are read from a yield curve at fixed maturities. Based on only recently issued,
actively traded securities.
13. Averages (to maturity or call) for all outstanding bonds neither due nor
callable in less than 10 years, including one very low yielding "flower" bond.
14. General obligations based on Thursday figures; Moody's Investors Service.
15. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
16. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
17. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of
call protection. Weekly data are based on Friday quotations.
18. Standard and Poor's corporate series. Preferred stock ratio based on a
sample of ten issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
NOTE. These data also appear in the Board's H.15 (519) and G. 13 (415) releases.
For address, see inside front cover.
Financial Markets A23
1.36 STOCK MARKET
Selected Statistics
1989
1988
Indicator
1986
1987
1988
Sept.
Nov.
Oct.
Dec.
Jan.
Feb.
Mar.
Apr.
May
Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2
Industrial
3
Transportation
4
Utility
5
Finance
6 Standard & Poor's Corporation
(1941-43 = 10)'
136.00
155.85
119.87
71.36
147.19
161.70
195.31
140.39
74.29
146.48
149.91
180.83
134.01
72.22
127.41
151.47
182.18
136.27
71.83
133.15
156.36
188.58
141.83
74.19
136.09
152.67
182.25
137.51
79.28
130.05
155.35
187.75
144.06
74.81
128.83
160.40
194.62
153.09
75.87
132.26
165.08
200.00
162.66
77.84
137.19
169.73
197.58
153.85
87.16
146.14
169.38
204.81
164.32
79.69
143.26
175.55
211.81
169.05
84.21
146.82
236.34
286.83
n.a.
267.97
277.40
271.02r
281.28''
285.41r
294.01r
292.7 V
302.25r
314.43
7 American Stock Exchange
(Aug. 31, 1973 = 50p
264.38
316.61
294.90
297.86
302.83
292.25
298.59
316.14
323.%
327.47
336.82
349.82
141,385
11,846
188,647
13,832
161,450
9,955
145,702
8,198
162,631
9,051
134,427
8,497
135,473
11,227
168,193
10,797
169,321
11,780
159,024
11,395
161,862
11,529
n.a.
n.a.
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
Customer financing (end-of-period balances, in millions of dollars)
10 Margin credit at broker-dealers3
36,840
31,990
32,740
32,770
33,410
33,640
32,740
32,530
31,480
32,130
32,610
33,140
Free credit balances at brokers4
11 Margin-account
12 Cash-account
4,880
19,000
4,750
15,640
5,660
16,595
4,'725
14,175
5,065
14,880
4,920
15,185
5,660
16,595
5,790
15,705
5,605
16,195
5,345
16,045
5,450
16,125
5,250
15,965
Margin requirements (percent of market value and effective date) 6
13 Margin stocks
14 Convertible bonds
15 Short sales
Mar. 11, 1968
June J , 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Beginning July 5, 1983, the American Stock Exchange rebased its index
effectively cutting previous readings in half.
3. 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.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
5. New series beginning June 1984.
6. These regulations, adopted by the Board of Governors pursuant to the
Securities Exchange Act of 1934, limit the amount of credit to purchase and carry
"margin securities" (as defined in the regulations) when such credit is collateralized by securities. Margin requirements on securities other than options are the
difference between the market value (100 percent) and the maximum loan value of
collateral as prescribed by the Board. Regulation T was adopted effective Oct. 15,
1934; Regulation U, effective May 1, 1936; Regulation G, effective Mar. 11, 1968;
and Regulation X, effective Nov. 1, 1971.
On Jan. 1, 1977, the Board of Governors for the first time established in
Regulation T the initial margin required for writing options on securities, setting
it at 30 percent of the current market-value of the stock underlying the option. On
Sept. 30, 1985, the Board changed the required initial margin, allowing it to be the
same as the option maintenance margin required by the appropriate exchange or
self-regulatory organization; such maintenance margin rules must be approved by
the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC
approved new maintenance margin rules, permitting margins to be the price of the
option plus 15 percent of the market value of the stock underlying the option.
A26
DomesticNonfinancialStatistics • August 1989
1.37 SELECTED FINANCIAL INSTITUTIONS
Selected Assets and Liabilities
Millions of dollars, end of period
1988
Account
1986
1989
198/
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
FSLIC-insured institutions
1 Assets
2 Mortgages
3 Mortgage-backed
securities
4 Contra-assets to
mortgage assets 1 .
5 Commercial loans
6 Consumer loans
7 Contra-assets to nonmortgage loans . . . .
8 Cash and investment
securities
3
9 Other
1,289,979 1,299,373
1,323,840 1,332,828' 1,332,856' 1,350,708' l,337,832r 1,339,548' 1,341,292
1,163,851
1,250,855
697,451
721,593
736,893
743,083
751,421
754,389
760,852'
763,036'
764,602'
767,300'
767,270'
769,318
158,193
201,828
207,744
208,509
210,573
211,195
211,844
212,679'
214,821
211,474'
212,589
215,504
41,799
23,683
51,622
42,344
23,163
57,902
40,251
24,672
61,150
40,296
24,964
61,571
39,078
25,099
62,417
38,500
24,782
61,558
38,303'
25,145
61,057
37,738'
25,276
61,508
37,430'
33,077'
62,367'
37,041'
33,041'
62,372'
37,975
32,935
61,620
1,311,668
3,041
3,467
3,513
3,389
3,118
3,074
164,844
112,898
169,717
122,462
177,533
125,751
178,459
126,472
175,793
128,561
183,178
130,313
10 Liabilities and net worth . 1,163,851
1,250,855
1,289,979 1,299,373
1,311,668
11
12
13
14
15
16
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
890,664
196,929
100,025
96,904
23,975
52,282
932,616
249,917
116,363
133,554
21,941
46,382
966,750
257,134
117,287
139,847
24,564
41,531
968,214'
262,745
118,213
144,532
27,110
41,304
968,294'
266,787
120,677
146,110
28,903
47,684
2,931
2,960
184,777'
130,387'
179,817'
131,237'
37,545'
33,657'
62,064
3,062'
2,931'
3,015'
4,125
186,155'
130,016'
178,609'
125,366'
177,947'
126,384'
175,746
127,270
1,323,840 1,332,828' 1,332,856' 1,350,708' 1,337,832' 1,339,548' 1,341,292
973,742
273,665
123,436
150,229
26,021
50,412
976,163
278,249'
124,368
153,881'
27,561'
50,855'
971,493
281,041'
127,548
153,493'
29,181'
51,141'
971,680'
299,251'
134,143
165,108'
24,162'
55,615'
963,815
299,341'
135,708
163,633'
29,776'
59,316'
957,347
305,607
140,028
165,579
31,798
59,323'
956,358
312,959
145,986
166,973
29,645
57,923
FSLIC-insured federal savings banks
17 Assets
210,562
284,270
329,736
333,596
357,897
367,928
369,682'
374,931'
425,806' 423,840'
432,655
443,267
18 Mortgages
19 Mortgage-backed
securities
20 Contra-assets to
mortgage assets .
21 Commercial loans
22 Consumer loans
23 Contra-assets to nonmortgage loans . . . .
24 Finance leases plus
interest
25 Cash and investment . . .
26 Other
113,638
161,926
190,647
193,150
204,351
207,952
207,207'
210,73c
227,858' 231,776'
235,075
241,268
29,766
45,826
52,648
53,027
55,688
56,399
56,630'
57,815'
65,473'
62,730'
65,074
68,051
n.a.
n.a.
13,180
9,100
6,504
17,696
10,089
7,904
21,142
10,135
7,916
21,449
10,893
8,568
22,526
10,982
8,694
22,420
10,894'
8,880'
22,421'
10,899'
9,040'
22,679'
12,748'
16,756'
24,242'
12,5^
16,271'
25,050'
12,665
16,371
25,986
13,150
16,421
26,148
678
738
699
734
785
789
803
897'
811'
853
934
n.a.
n.a.
19,034
591
35,347
24,069
708
40,286
27,230
735
40,837
27,316
791
44,859
32,740
804
48,984
34,442
804'
48,818'
29,178'
831'
882'
48,028' 59,999,800'
29,942'
35,378'
905'
57,445'
33,956'
997
58,978
34,427
965
59,056
36,352
27 Liabilities and net worth .
210,562
284,270
329,736
333,596
357,897
367,928
369,682'
374,931'
425,806' 423,840'
432,655
443,267
28
29
30
31
32
33
157,872
37,329
19,897
17,432
4,263
11,098
203,196
60,716
29,617
31,099
5,324
15,034
236,759
69,356
32,177
37,179
6,639
16,886
239,590
70,015
31,941
38,074
7,051
16,843
256,223
75,859
35,357
40,502
8,052
17,661
261,862
80,674
37,245
43,429
7,374
17,886
262,922'
80,779'
37,510
43,269'
7,667'
18,194'
263,984
83,628
39,630
43,998
8,320'
18,882'
298,206' 298,530'
99,250' 98,259'
46,244' 46,466'
53,006' 51,793'
8,275'
8,086'
20,186' 21,621'
301,778
102,858
48,889
53,969
8,888
22,137
307.591
107,191
51,531
55,660
8,651
23,233
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
n.a.
Savings banks
34 Assets
35
36
Loans
Mortgage
Other
Securities
U.S. government
Mortgage-backed
securities
State and local
government
Corporate and other .
Cash
Other assets
236,866
259,643
249,927
252,875
253,453
255,510
257,127
258,537
261,361
254,319
254,165
255,226
118,323
35,167
138,494
33,871
138,148
32,399
139,844
32,941
141,316
32,799
143,626
32,879
145,398
33,234
146,501
33,791
147,597
31,269
144,998
32,450
145,426
32,369
145,174
33,194
14,209
13,510
11,597
11,563
11,353
11,182
10,896
10,804
11,457
10,485
10,315
10,318
25,836
32,772
29,735
30,064
30,006
29,190
29,893
29,372
29,751
29,258
29,085
29,373
2,185
20,459
6,894
13,793
2,003
18,772
5,864
14,357
1,849
17,492
4,831
13,876
1,840
17,527
5,186
13,910
1,901
17,301
4,950
13,827
1,878
17,234
5,463
14,058
1,872
16,886
4,825
14,123
1,887
16,773
5,093
14,316
1,848
17,822
7,050
14,567
1,835
15,964
5,532
13,797
1,829
15,812
5,465
13,864
1,814
15,984
5,972
13,397
43 Liabilities
236,866
259,643
249,927
252,875
253,453
255,510
257,127
258,537
261,361
254,319
254,165
255,226
44 Deposits
45 Regular4
46
Ordinary savings . .
47
Time
48 Other
49 Other liabilities
50 General reserve
accounts
192,194
186,345
37,717
100,809
5,849
25,274
201,497
196,037
41,959
112,429
5,460
35,720
194,018
188,571
40,179
110,738
5,447
34,038
195,537
189,993
40,124
112,272
5,544
34,686
195,907
190,716
39,738
114,255
5,191
34,776
197,665
192,228
39,618
116,387
5,427
35,001
197,925
192,663
39,375
117,712
5,262
35,997
199,092
194,095
39,482
119,026
4,997
36,012
202,058
196,407
39,750
121,148
5,651
36,169
195,452
190,378
38,221
118,612
5,074
33,782
195,308
190,422
38,049
119,109
4,886
33,642
199,399
194,276
38,070
123,162
7,206
30,500
18,105
20,633
19,875
20,069
20,018
20,151
20,324
20,462
20,337
20,138
20,336
20,338
37
38
39
40
41
42
Financial Markets
All
1.37—Continued
1988
Account
1986
1989
1987
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Credit unions 5
51 Total assets/liabilities
and capital
52
53
Federal
State
54 Loans outstanding..
55
Federal
56
State
57 Savings
Federal
58
59
State
147,726
172,345
173,276
173,044
174,649
174,722
174,406
174,593
175,027
176,270
178,175
95,483
52,243
112,573
59,772
113,068
60,208
112,686
60,358
113,383
61,266
113,474
61,248
113,717
61,135
114,566
60,027
114,909
60,118
115,543
60,727
117,555
60,620
105,800
68,658
37,142
158,186
103,347
54,839
107,065
69,626
37,439
159,314
104,256
55,058
108,974
70,944
38,030
158,731
103,657
55,074
110,939
72,200
38,739
157,944
103,698
54,246
111,624
72,551
39,073
160,174
104,184
55,990
112,452
73,100
39,352
159,021
103,223
55,798
113,191
73,766
39,425
159,010
104,431
54,579
114,012
74,083
39,927
159,106
104,629
54,477
113,880
73,917
39,963
161,073
105,262
55,811
114,572
74,395
40,177
164,322
107,368
56,954
86,137
55,304
30,833
134,327
87,954
46,373
n a.
Life insurance companies
60 Assets
61
62
63
64
65
66
67
68
69
70
71
Securities
Government
United States 6 ..
State and local .
Foreign
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
937,551
1,044,459
1,105,546
1,113,547
1,121,337
1,131,179
1,139,490
1,144,854
1,157,140
1,167,184
1,173,325
84,640
59,033
11,659
13,948
492,807
401,943
90,864
193,842
31,615
54,055
80,592
84,426
57,078
10,681
16,667
569,199
472,684
96,515
203,545
34,172
53,626
89,586
87,160
59,351
11,114
16,695
614,052
509,105
104,947
220,870
35,545
53,107
94,812
88,218
60,244
11,102
16,872
618,742
514,926
103,816
221,990
35,737
53,142
95,718
88,362
60,407
11,190
16,765
624,917
520,796
104,121
233,438
35,920
53,194
95,505
87,588
59,874
11,054
16,660
630,086
525,336
104,750
225,627
35,892
53,149
98,837
88,883
60,621
11,069
17,193
633,390
527,419
105,971
227,342
36,892
53,157
99,826
89,510
61,108
11,189
17,213
638,350
532,197
106,153
229,234
36,673
53,148
94,116
88,167
60,685
11,126
16,356
644,894
538,053
106,841
232,639
37,972
53,020
95,518
88,747
61,042
11,036
16,669
655,149
545,970
109,179
233,334
38,112
53,210
98,632
88,168
60,800
10,736
16,632
659,826
550,630
109,196
233,827
38,690
53,265
99,550
1. Contra-assets are credit-balance accounts that must be subtracted from the
corresponding gross asset categories to yield net asset levels. Contra-assets to
mortgage loans, contracts, and pass-through securities include loans in process,
unearned discounts and deferred loan fees, valuation allowances for mortgages
"held for sale," and specific reserves and other valuation allowances.
2. Contra-assets are credit-balance accounts that must be subtracted from the
corresponding gross asset categories to yield net asset levels. Contra-assets to
nonmortgage loans include loans in process, unearned discounts and deferred loan
fees, and specific reserves and valuation allowances.
3. Holding of stock in Federal Home Loan Bank and Finance leases plus
interest are included in " O t h e r " (line 9).
4. Excludes checking, club, and school accounts.
5. Data include all federally insured credit unions, both federal and state
chartered, serving natural persons.
6. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
7. Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
n.a.
NOTE. FSLlC-insured institutions: Estimates by the F H L B B for all institutions
insured bv the FSLIC and based on the F H L B B thrift Financial Report.
FSLIC-insured federal savings banks: Estimates by the F H L B B for federal
savings banks insured by the FSLIC and based on the F H L B B thrift Financial
Report.
Savings banks: Estimates by the National Council of Savings Institutions for all
savings banks in the United States and for FDIC-insured savings banks that have
converted to federal savings banks.
Credit unions: Estimates by the National Credit Union Administration for
federally chartered and federally insured state-chartered credit unions serving
natural persons.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for
differences between market and book values are not made on each item separately
but are included, in total, in "other a s s e t s . "
A28
Domestic Financial Statistics • August 1989
1.38 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
U.S. budget1
1 Receipts, total
2 On-budget
3 Off-budget
4 Outlays, total
5 On-budget
6 Off-budget
7 Surplus, or deficit ( - ) , total
8 On-budget
9 Off-budget
Source of financing (total)
Borrowing from the public
Operating cash (decrease, or increase
(-)l
12 Other2
10
11
Fiscal
year
1986
Fiscal
year
1987
Fiscal
year
1988
769,091
568,862
200,228
990,258
806,760
183,498
-221,167
-237,898
16,731
854,143
640,741
213,402
1,003,830
809,998
193,832
-149,687
-169,257
19,570
908,953
667,462
241,491
1,064,044
861,352
202,691
-155,090
-193,890
38,800
1988
1989
Dec.
Jan.
Feb.
Mar.
Apr.
May
93,795
74,682
19,114
105,237
91,606
13,632
-11,442
-16,924
5,482
89,369
65,250
24,119
86,563
68,999
17,564
2,806
-3,749
6,555
61,978
38,473
23,505
89,850
71,324
18,526
-27,871
-32,851
4,979
68,276
44,677
23,598
104,055
85,191
18,864
-35,779
-40,513
4,735
128,952
99,679
29,273
88,381'
71,798r
16,582
40,572r
27,881'
12,691
71,115
49,493
21,622
96,581
77,851
18,730
-25,466
-28,358
2,891
236,187
150,070
162,062
12,036
7,359
17,190
13,405
-1,291
10,214
-14,324
-696
-5,052
4,669
-7,963
991
-12,268
11,674
-8,135
-2,030
17,009
-6,328
10,154
12,221
-38,788
-493'
21,396
-6,144
31,384
7,514
23,870
36,436
9,120
27,316
44,398
13,024
31,375
33,700
8,657
25,044
41,835
11,766
30,069
24,826
6,298
18,528
14,672
4,462
10,211
53,461'
22,952
30,508
32,065
5,289
26,776
MEMO
13 Treasury operating balance (level, end of
period)
14 Federal Reserve Banks
15 Tax and loan accounts
1. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985, all former off-budget entries are now presented on-budget. The Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the FFB to finance their programs. The act has also moved two
social security trust funds (Federal old-age survivors insurance and Federal
disability insurance trust funds) off-budget.
2. Includes SDRs; reserve position on the U.S. quota in the IMF; loans to
international monetary fund; other cash and monetary assets; accrued interest
payable to the public; allocations of special drawing rights; deposit funds;
miscellaneous liability (including checks outstanding) and asset accounts;
seigniorage; increment on gold; net gain/loss for U.S. currency valuation adjustment; net gain/loss for IMF valuation adjustment; and profit on the sale of gold.
SOURCE. Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government and the Budget of the U.S. Government.
Federal Finance
A29
1.39 U.S. BUDGET RECEIPTS AND OUTLAYS 1
Millions of dollars
Calendar year
Source or type
Fiscal
year
1987
Fiscal
year
1988
1987
1989
1988
HI
H2
HI
H2
Mar.
Apr.
May
RECEIPTS
1 All sources
2 Individual income taxes, net
3
Withheld
4
Presidential Election Campaign Fund
5
Nonwithheld
6
Refunds
Corporation income taxes
7
Gross receipts
8
Refunds
9 Social insurance taxes and contributions,
net
10
Employment taxes and
contributions
11
Self-employment taxes and
contributions
12
Unemployment insurance
13
Other net receipts
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 5
854,143
908,954
447,282
421,712
476,115
449,821
68,276
128,952
71,115
392,557
322,463
33
142,957
72,896
401,181
341,435
33
132,199
72,487
205,157
156,760
30
112,421
64,052
192,575
170,203
4
31,223
8,853
207,659
169,300
28
101,614
63,283
200,299
179,600
4
29,880
9,187
17,769
34,088
7
4,585
20,912
68,533
23,649
6
61,704
16,826
25,336
29,085
8
14,842
18,599
102,859
18,933
109,683
15,487
52,396
10,881
52,821
7,119
58,002
8,706
56,409
7,384
14,481
1,980
16,412
1,723
2,994
1,068
303,318
334,335
163,519
143,755
181,058
157,603
30,268
39,496
35,349
273,028
305,093
146,6%
130,388
164,412
144,983
29,736
36,775
27,281
13,987
25,575
4,715
17,691
24,584
4,659
12,020
14,514
2,310
1,889
10,977
2,390
14,839
14,363
2,284
3,032
10,359
2,262
1,181
118
414
8,900
2,375
346
1,281
7,661
407
32,457
15,085
7,493
19,307
35,540
16,198
7,594
19,909
15,845
7,494
3,818
10,299
17,680
7,993
3,610
10,399
16,440
7,913
3,863
9,950
19,434
8,535
4,054
10,873
3,228
1,476
723
2,312
2,616
1,263
1,146
1,209
3,640
1,466
793
2,605
OUTLAYS
18 All types
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology . . . .
Energy
Natural resources and environment
Agriculture
25
26
27
28
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
social services
1,064,055'
503,267
532,839
513,210
553,217 r
104,055
88,381'
96,581
281,999
11,649
9,216
4,115
13,363
26,606
290,361
10,471
10,841
2,297
14,606
17,210
142,886
4,374
4,324
2,335
6,175
11,824
146,995
4,487
5,469
1,468
7,590
14,640
143,080
7,150
5,361
555
6,776
7,872
150,4%
2,636
5,852
1,966
8,330
7,725
29,719
1,762
1,200
573
1,268
%5
21,247
1,366
929
280
951
2,364
25,012
1,398
1,128
267
1,3%
1,470
6,182
26,222
5,051
18,808
27,272
5,294
4,893
12,113
3,108
3,852
14,096
2,075
5,951
12,700
2,765
20,274
14,922
2,690
841
2,109
312
1,003,830
1,334'
1,746
241
558
2,668
-25
29,724
31,938
14,182
15,592
15,451
16,152
2,967
2,859
3,039
29 Health
30 Social security and medicare
31 Income security
39,968
282,472
123,250
44,490
297,828
129,332
20,318
142,864
62,248
20,750
158,469
61,201
22,643
135,322
65,555
23,360
149,508'
64,978
3,881
27,778
14,458
4,028
25,877
11,612
4,454
27,067
12,106
32
33
34
35
36
37
26,782
7,548
5,948
1,621
138,570
-36,455
29,428
9,223
7,658
1,816
151,748
-36,967
12,264
3,626
3,344
337
70,110
-19,102
14,956
4,291
3,560
1,175
71,933
-17,684
13,241
4,761
4,337
448
76,098
-17,766
15,797
4,778
5,137
0
78,317
-18,771
3,766
806
743
0
13,931
-3,025
1,251
949
156
0
14,076
-2,887
2,809
1,066
872
n.a.
14,605
-3,309
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Net interest 6
Undistributed offsetting receipts
1. Functional details do not add to total outlays for calendar year data because
revisions to monthly totals have not been distributed among functions. Fiscal year
total for outlays does not correspond to calendar year data because revisions from
the Budget have not been fully distributed across months.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Federal employee retirement contributions and civil service retirement and
disability fund.
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous
receipts.
6. Net interest function includes interest received by trust funds.
7. Consists of rents and royalties on the outer continental shelf and U.S.
government contributions for employee retirement.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government, and the U . S . Office of Management and Budget, Budget of the U.S. Government, Fiscal Year 1990.
A30
DomesticNonfinancialStatistics • August 1989
1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1988
1987
1989
Item
Mar. 31
Sept. 30
1 Federal debt outstanding
2,250.7
2,313.1
2,354.3
2,435.2
2,493.2
2,555.1
2,614.6
2,707.3
2,763.6
2 Public debt securities
3 Held by public
4 Held by agencies
2,246.7
1,839.3
407.5
2,309.3
1,871.1
438.1
2,350.3
1,893.1
457.2
2,431.7
1,954.1
477.6
2,487.6
1,996.7
490.8
2,547.7
2,013.4
534.2
2,602.2
2,051.7
550.4
2,684.4
2,095.2
589.2
2,740.9
2,133.4
607.5
4.0
2.9
1.1
3.8
2.8
1.0
4.0
3.0
1.0
3.5
2.7
.8
5.6
5.1
.6
7.4
7.0
.5
12.4
12.2
.2
22.9
22.6
.3
22.7
22.3
.4
8 Debt subject to statutory limit
Mar. 31
Dec. 31
June 30
5 Agency securities
6 Held by public
7 Held by agencies
Dec. 31
Sept. 30
Mar. 31
June 30
2,232.4
2,295.0
2,336.0
2,417.4
2,472.6
2,532.2
2,586.9
2,669.1
2,725.6
9 Public debt securities
10 Other debt 1
2,231.1
1.3
2,293.7
1.3
2,334.7
1.3
2,416.3
1.1
2,472.1
.5
2,532.1
.1
2,586.7
.1
2,668.9
.2
2,725.5
.2
11 MEMO: Statutory debt limit
2,300.0
2,320.0
2,800.0
2,800.0
2,800.0
2,800.0
2,800.0
2,800.0
2,800.0
1. Includes guaranteed debt of Treasury and other federal 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 and Monthly Statement of the Public Debt of the
United States.
Types and Ownership
Billions of dollars, end of period
1989
1988
Type and holder
1 Total gross public debt
By type
7
3
4
5
6
7 Nonmarketable
8 State and local government series
9 Foreign issues
Government
10
Public
It
17 Savings bonds and notes.. ^
13 Government account series
14 Non-interest-bearing debt
By holder4
15 U.S. government agencies and trust funds
16
17
18 Commercial banks
19 Money market funds
?n Insurance companies
71
22 State and local Treasurys
Individuals
73
Savings bonds
Other securities
74
75 Foreign and international
26 Other miscellaneous investors
1985
1987
1988
Q2
Q3
Q4
Q1
1,945.9
2,214.8
2,431.7
2,684.4
2,547.7
2,602.2
2,684.4
2,740.9
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
2,428.9
1,724.7
389.5
1,037.9
282.5
704.2
139.3
4.0
4.0
.0
99.2
461.3
2,663.1
1,821.3
414.0
1,083.6
308.9
841.8
151.5
6.6
6.6
.0
107.6
575.6
2,545.0
1,769.9
382.3
1,072.7
299.9
775.1
146.9
5.7
5.7
.0
104.5
517.5
2,599.9
1,802.9
398.5
1,089.6
299.9
797.0
147.6
6.3
6.3
.0
106.2
536.5
2,663.1
1,821.3
414.0
1,083.6
308.9
841.8
151.5
6.6
6.6
.0
107.6
575.6
2,738.3
1,871.7
417.0
1,121.4
318.4
866.6
154.4
6.7
6.7
.0
110.4
594.7
2.5
2.8
2.8
21.3
2.7
2.3
21.3
2.6
348.9
181.3
1,417.2
198.2
25.1
78.5
59.0
226.7
403.1
211.3
1,602.0
203.5
28.0
105.6
68.8
262.8
477.6
222.6
1,745.2
201.2
14.3
120.6
84.6
282.6
589.2
238.4
1,852.8
195.0
18.8
n.a.
86.1
n.a.
534.2
227.6
1,784.9
202.5
13.1
132.2
86.5
286.3
550.4
229.2
1,819.0
203.0
10.8
135.0
86.0
287.0
589.2
238.4
1,852.8
195.0
18.8
n.a.
86.1
n.a.
607.5
228.6
1,900.2
n.a.
n.a.
n.a.
n.a.
n.a.
79.8
75.0
212.5
462.4
92.3
70.5
251.6
518.9
101.1
72.3
287.3
581.2
109.6
77.8
349.3
n.a.
106.2
73.9
333.8
552.6
107.8
76.7
334.3
583.1
109.6
77.8
349.3
n.a.
112.2
n.a.
363.1
n.a.
1. Includes (not shown separately): Securities issued to the Rural Electrification Administration; depository bonds, retirement plan bonds, and individual
retirement bonds.
2. Nonmarketable dollar-denominated and foreign currency-denominated series held by foreigners.
3. Held almost entirely by U.S. Treasury agencies and trust funds.
4. Data for Federal Reserve Banks and U.S. Treasury agencies and trust funds
are actual holdings; data for other groups are Treasury estimates.
1986
5. Consists of investments of foreign and international accounts. Excludes
non-interest-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. Treasury deposit accounts, and federally-sponsored agencies.
SOURCES. Data by type of security, U.S. Treasury Department, Monthly
Statement of the Public Debt of the United States; data by holder. Treasury
Bulletin.
Federal Finance
1.42 U.S. GOVERNMENT SECURITIES DEALERS
A31
Transactions1
Par value; averages of daily figures, in millions of dollars
1989
1989
Item
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Immediate delivery2
U.S. Treasury 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 contracts
Treasury bills
Treasury coupons
Federal agency securities
Forward transactions
U.S. Treasury securities
Federal agency securities
1986
1987
1988
Mar.
Apr/
May
Apr. 26
May 3
May 10
May 17
May 24
May 31
95,444
110,050
101,623
101,107
108,007
120,920
98,348r
101,246
113,118
142,041
131,380
113,484
34,247
2,115
24,667
20,455
13,961
37,924
3,271
27,918
24,014
16,923
29,387
3,426
27,777
24,939
16,093
30,718
3,953
29,531
24,284
12,621
29,322
3,172
31,428
29,713
14,373
29,394
3,596
38,123
30,665
19,141
26,340'
2,702
32,681
24,288
12,337
24,271
4,020
31,004
27,478
14,473
27,736
3,343
34,685
30,171
17,183
32,788
4,002
47,414
33,337
24,500
29,494
3,438
44,123
32,876
21,449
31,957
3,172
32,262
29,640
16,453
3,669
2,936
2,761
3,561
3,379
2,966
2,690
2,712
2,826
2,735
3,245
3,038
49,558
42,217
16,747
4,355
3,272
16,660
61,539
45,575
18,084
4,112
2,965
17,135
59,844
39,019
15,903
3,369
2,316
22,927
59,914
37,632
15,417
3,203
2,112
30,481
64,438
40,191
17,225
2,946
2,562
30,858
72,398
45,556
16,311
2,652
2,113
29,109
59,023
36,634'
15,130'
2,798
2,490
28,918
61,477
37,058
16,605
2,158
2,579
32,245
67,586
42,705
15,416
2,383
1,875
28,774
85,826
53,480
21,067
2,876
2,312
29,517
79,524
48,610
13,990
2,998
2,005
27,657
66,100
44,346
15,115
2,589
2,177
29,387
3,311
7,175
16
3,233
8,963
5
2,627
9,695
1
3,139
9,087
0
2,788
8,655
0
2,501
10,282
0
2,269
7,111
0
2,121
8,521
0
2,337
8,868
0
2,975
11,999
0
2,529
12,358
0
2,726
9,471
0
1,876
7,830
2,029
9,290
2,095
8,008
1,819
8,322
2,019
7,875
2,756
9,976
1,954
5,667'
2,981
7,386
2,478
9,038
2,846
14,034
2,388
10,462
2,932
6,885
1. Transactions are market purchases and sales of securities as reported to the
Federal Reserve Bank of New 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. Treasury
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
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 Treasury securities (Treasury bills, notes, and
bonds) or after 30 days for mortgage-backed agency issues.
A32
DomesticNonfinancialStatistics • August 1989
1.43 U.S. GOVERNMENT SECURITIES DEALERS
Positions and Financing1
Averages of daily figures, in millions of dollars
1989
Item
1986
1987
1989
1988
Mar.
Apr/
May
May 3
May 10
May 17
May 24
May 31
Positions
1
Net immediate2
U.S. Treasury securities
12,912
-6,216
-22,765
-32,313
-22,587
-14,753
-20,700
-17,051
-12,794
-14,112
-10,986
2
3
4
5
6
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
12,761
3,705
9,146
-9,505
-3,197
4,317
1,557
649
-6,564
-6,174
2,238
-2,236
-3,020
-9,663
-10,084
-2,056
-4,240
-7,631
-8,724
-9,661
1,445
-963
-5,651
-9,138
-8,279
1,171
-1,733
-2,110
-6,056
-6,025
-67
-1,612
-4,508
-7,327
-7,186
3,658
-2,082
-4,109
-6,617
-7,901
746
-2,465
-1,515
-4,426
-5,133
576
-1,439
-1,921
-6,636
-4,693
190
-768
1,253
-5,839
-5,823
7
8
9
10
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures positions
Treasury bills
Treasury coupons
Federal agency securities
Forward positions
U.S. Treasury securities
Federal agency securities
32,984
10,485
5,526
8,089
31,911
8,188
3,660
7,496
28,230
7,300
2,486
6,152
30,770
7,121
1,929
6,734
28,604
6,170
2,534
9,158
27,119
5,775
1,948
8,600
28,135
5,712
2,190
9,526
27,623
5,463
1,868
7,634
27,938
5,613
2,131
8,341
26,669
5,888
1,942
9,107
25,287
6,301
1,812
9,328
-18,059
3,473
-153
-3,373
5,988
-95
-2,210
6,224
0
1,829
2,925
0
-5,134
878
0
-5,731
-287
0
-4,938
1,111
0
-5,482
1,206
0
-5,704
-706
0
-6,531
-1,073
0
-5,711
-1,840
0
-2,144
-11,840
-1,211
-18,817
346
-16,348
-641
-15,662
-1,317
-15,334
-1,380
-16,746
-415
-16,313
-1,353
-16,265
-1,780
-17,107
-1,611
-16,820
-982
-17,277
11
12
13
14
15
Financing3
Reverse repurchase agreements
Overnight and continuing
Term
Repurchase agreements
18 Overnight and continuing
19 Term
16
17
98,913
108,607
126,709
148,288
136,327
177,477
160,212
226,855
158,544
226,378
155,545
229,085
154,119
237,053
142,143
244,629
159,652
221,675
158,881
230,710
162,357
214,547
141,823
102,397
170,763
121,270
172,695
137,056
204,454
163,104
206,914
172,623
202,363
185,410
196,594
190,786
183,937
206,472
201,920
176,888
205,841
187,814
221,214
167,241
1. Data for dealer positions and sources of financing are obtained from reports
submitted to the Federal Reserve Bank of New York by the U.S. Treasury
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. Treasury and federal agency securities, negotiable CDs, bankers acceptances, and commercial paper.
4. Includes all reverse repurchase agreements, including those that have been
arranged to make delivery on short sales and those for which the securities
obtained have been used as collateral on borrowings, that is, matched agreements.
5. Includes both repurchase agreements undertaken to finance positions and
"matched book" repurchase agreements.
NOTE. Data on positions for the period May 1 to Sept. 30, 1986, are partially
estimated.
Federal Finance
1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
A33
Debt Outstanding
Millions of dollars, end of period
1989
1988
Agency
1984
1986
1985
1987
Dec.
Jan.
Feb.
Mar.
Apr.
271,220
293,905
307,361
341,386
381,498
385,959
390,803
397,318
n.a.
35,145
142
15,882
133
36,390
71
15,678
115
36,958
33
14,211
138
37,981
13
11,978
183
35,668
8
11,033
150
35,727
8
11,033
143
35,768
8
11,033
165
36,348
8
11,007
172
36,402
7
11,007
182
2,165
1,337
15,435
51
2,165
1,940
16,347
74
2,165
3,104
17,222
85
1,615
6,103
18,089
0
0
6,142
18,335
0
0
6,142
18,401
0
0
6,142
18,420
0
0
6,742
18,419
0
0
6,742
18,464
0
10 Federally sponsored agencies7
11 Federal Home Loan Banks
12 Federal Home Loan Mortgage Corporation
13 Federal National Mortgage Association
14 Farm Credit Banks8
15 Student Loan Marketing Association
16 Financing Corporation
17 Farm Credit Financial Assistance Corporation
237,012
65,085
10,270
83,720
72,192
5,745
n.a.
n.a.
257,515
74,447
11,926
93,896
68,851
8,395
n.a.
n.a.
270,553
88,752
13,589
93,563
62,478
12,171
n.a.
n.a.
303,405
115,725
17,645
97,057
55,275
16,503
1,200
n.a.
345,830
135,834
22,797
105,459
53,127
22,073
5,850
690
350,232
139,804
22,874
104,843
52,319
23,852
5,850
690
355,035
144,343
21,320
105,201
52,441
25,190
5,850
690
360,970
149,950
23,392
104,666
52,069
23,753
6,450
690
n.a.
154,146
22,676
104,675
51,678
n.a.
6,950
846
MEMO
18 Federal Financing Bank debt12
145,217
153,373
157,510
152,417
142,850
142,447
142,123
141,864
141,102
15,852
1,087
5,000
13,710
51
15,670
1,690
5,000
14,622
74
14,205
2,854
4,970
15,797
85
11,972
5,853
4,940
16,709
0
11,027
5,892
4,910
16,955
0
11,027
5,892
4,910
17,021
0
11,027
5,892
4,910
17,040
0
11,001
6,492
4,910
17,039
0
11,001
6,492
4,910
17,084
0
58,971
20,693
29,853
64,234
20,654
31,429
65,374
21,680
32,545
59,674
21,191
32,078
58,496
19,246
26,324
58,496
19,225
25,876
58,496
19,245
25,513
57,841
19,195
25,386
57,086
19,230
25,299
1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department 1
4 Export-Import Bank •
5 Federal Housing Administration
6 Government National
Mortgage Association participation
certificates5
7
Postal Service
8 Tennessee Valley Authority
9
United States Railway Association
19
20
21
22
23
Lending to federal and federally sponsored agencies
Export-Import Bank
Postal Service6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association
Other Lending13
24 Farmers Home Administration
25 Rural Electrification Administration
26 Other
1. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
5. Certificates of participation issued before fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing
and Urban Development; Small Business Administration; and the Veterans
Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Some data are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation,
shown in line 17.
9. Before late 1981, the Association obtained financing through the Federal
Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is
shown on line 21.
10. The Financing Corporation, established in August 1987 to recapitalize the
Federal Savings and Loan Insurance Corporation, undertook its first borrowing in
October 1987.
11. The Farm Credit Financial Assistance Corporation (established in January
1988 to provide assistance to the Farm Credit System) undertook its first
borrowing in July 1988.
12. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since FFB
incurs debt solely for the purpose of lending to other agencies, its debt is not
included in the main portion of the table in order to avoid double counting.
13. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any
particular agency being generally small. The Farmers Home Administration item
consists exclusively of agency assets, while the Rural Electrification Administration entry contains both agency assets and guaranteed loans.
A34
DomesticNonfinancialStatistics • August 1989
1.45 NEW SECURITY ISSUES
Tax-Exempt State and Local Governments
Millions of dollars
1988
Type of issue or issuer,
or use
1988
Oct.
Nov.
Dec.
Jan.
Apr/
May
1 All issues, new and refunding1
147,011
102,407
108,078
10,455
8,551
11,268
6,640
8,054
8,626
7,464
6,585
Type of issue
2 General obligation
3 Revenue
46,346
100,664
30,589
71,818
29,662
78,417
2,058
8,397
2,368
6,183
2,491
8,777
1,784
4,856
3,955
4,099
2,185
6,441
2,301
5,163
2,043
4,542
Type of issuer
4 State
5 Special district and statutory authority
6 Municipalities, counties, and townships
14,474
89,997
42,541
10,102
65,460
26,845
9,254
69,447
29,377
734
7,283
2,438
525
5,550
2,476
1,011
7,690
2,567
280
4,882
1,478
1,896
3,832
2,326
256
5,962
2,408
1,407
4,238
1,819
392
4,439
1,754
7 Issues for new capital, total
83,492
56,789
75,064
6,965
5,830
8,738
4,141
5,222
6,486
6,061
5,458
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
12,307
7,246
14,594
11,353
6,190
31,802
9,524
3,677
7,912
13,722
6,974
7,929
17,824
6,276
22,339
512
559
1,238
2,478
393
1,785
827
237
1,055
1,991
294
1,426
2,564
636
463
2,072
827
344
1,335
509
293
834
826
382
847
743
250
2,174
1,055
445
901
1,329
253
2,503
1,225
743
759
1,048
374
1,912
1,157
661
399
1,200
356
1,685
8
9
10
11
12
13
11,106
7,474
18,020
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts beginning 1986.
1.46 NEW SECURITY ISSUES
1,010
1,993
SOURCES. Securities Data/Bond Buyer Municipal Data Base beginning 1986.
Public Securities Association for earlier data.
U.S. Corporations
Millions of dollars
Type of issue or issuer,
or use
1988
1986
1987
1989
1988'
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
1 All issues'
423,726
392,156
408,790
23,933
21,818
24,531
12,389
17,369
14,269r
26,230'
14,488
2 Bonds2
355,293
325,648
350,988
20,928
19,031
21,096
10,338
14,208
11,734'
25,308'
13,500
Type of offering
3 Public, domestic
4 Private placement, domestic3
5. Sold abroad
231,936
80,760
42,596
209,279
92,070
24,299
200,110
127,700
23,178
18,240
n.a.
2,688
17,519
n.a.
1,512
16,798
n.a.
4,298
10,203
n.a.
135
11,348
n.a.
2,860
9,540'
n.a.
2,194'
22,726'
11,000
2,582'
2,500
91,548
40,124
9,971
31,426
16,659
165,564
61,666
49,327
11,974
23,004
7,340
172,343
69,669
61,836
9,975
19,318
5,901
184,286
3,750
1,035
150
856
1,064
14,072
3,552
764
605
1,346
100
12,664
2,890
3,260
45
672
289
13,940
1,485
748
0
264
158
7,683
1,660
2,047
0
635
0
9,867
1,319
l,097r
102
640
230
8,346r
7,455'
883'
0
153
63
16,753'
1,400
783
100
1,650
450
9,117
12 Stocks3
68,433
66,508
57,802
3,005
2,787
3,435
2,051
3,161
2,535r
921
988
Type
13 Preferred
14 Common
15 Private placement3
11,514
50,316
6,603
10,123
43,225
13,157
6,544
35,911
15,346
385
2,620
n.a.
865
1,922
n.a.
478
2,957
n.a.
495
1,556
n.a.
275
2,886
n.a.
975
1,560'
n.a.
310
611
n.a.
495
493
n.a.
15,027
10,617
2,427
4,020
1,825
34,517
13,880
12,888
2,439
4,322
1,458
31,521
7,608
8,449
1,535
1,898
515
37,798
244
525
5
215
23
1,993
288
222
25
282
0
1,970
430
52
20
70
20
2,843
425
89
0
20
59
1,459
33
32
220
1,960
5
911
832
270
0
11
19
1,402
127
336
53
108'
0
297
135
280
169
0
93
310
6
7
8
9
10
11
16
17
18
19
20
21
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, are principal amount or number of units multiplied by offering price.
Excludes secondary offerings, employee stock plans, investment companies other
than closed-end, intracorporate transactions, equities sold abroad, and Yankee
bonds. Stock data include ownership securities issued by limited partnerships.
2. Monthly data include only public offerings.
3. Data are not available on a monthly basis. Before 1987, annual totals include
underwritten issues only.
SOURCES. IDD Information Services, Inc., the Board of Governors of the
Federal Reserve System, and before 1989, the U.S. Securities and Exchange
Commission.
Securities Market and Corporate Finance
1.47 OPEN-END INVESTMENT COMPANIES
A35
Net Sales and Asset Position
Millions of dollars
1989
1988
Item
1987
1988
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar/
Apr.
INVESTMENT COMPANIES1
1 Sales of own shares2
381,260
271,237
19,872
20,494
20,327
25,780
29,014
22,741
23,149
25,496
2 Redemptions of own shares3
3 Net sales
314,252
67,008
267,451
3,786
21,330
-1,458
19,362
1,132
20,599
-272
25,976
-196
24,494
4,520
22,252
489
24,135
-986
26,183
-687
4 Assets4
453,842
472,297
474,662
481,571
470,660
472,297
487,204
482,697
483,067
497,329
5 Cash position5
6 Other
38,006
415,836
45,090
427,207
46,706
427,956
45,976
435,595
43,488
427,172
45,090
427,207
49,661
437,543
47,908
434,789
46,262
436,805
48,788
448,541
4. Market value at end of period, less current liabilities.
5. Also includes all U.S. government securities and other short-term debt
securities.
NOTE. Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the
Securities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.
SOURCE. Survey of Current Business (Department of Commerce).
1. Data on sales and redemptions exclude money market mutual funds but
include limited maturity municipal bond funds. Data on asset positions exclude
both money market mutual funds and limited maturity municipal bond 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.
1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1987
Account
1986
1 Corporate profits with inventory valuation and
capital consumption adjustment
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
2
3
4
5
6
7 Inventory valuation
8 Capital consumption adjustment
1987
1989
1988
1988
Q2
Q3
Q4
Ql
Q2
Q3
Q4
Qr
298.9
236.4
106.6
129.8
88.2
41.6
310.4
276.7
133.8
142.9
95.5
47.4
328.1
306.4
142.6
163.8
104.5
59.2
305.2
273.7
132.6
141.1
94.0
47.0
322.0
289.4
140.0
149.5
97.0
52.4
316.1
281.9
136.2
145.7
99.3
46.4
316.2
286.2
136.9
149.4
101.3
48.1
326.5
305.9
143.2
162.7
103.1
59.6
330.0
313.9
144.8
169.1
105.7
63.4
340.9
320.6
146.1
174.5
108.0
66.4
319.4
320.2
147.6
172.6
8.3
54.2
-18.0
51.7
-23.8
45.6
-20.0
51.5
-19.5
52.1
-18.2
52.4
-19.4
49.4
-27.4
48.0
-29.3
45.4
-19.2
39.6
-34.1
33.3
•Trade and services are no longer being reported separately. They are included
111.1
61.5
in Commercial and other, line 10.
1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment •
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1987
Industry
1 Total nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5
Railroad
6 Air
7
Other
Public utilities
8
Electric
9 Gas and other
10 Commercial and o t h e r
1987
1988
1989
Q4
Ql
Q2
Q3
Q4
Ql
Q21
Q31
389.67
429.67
468.78
417.25
422.75
429.01
440.42
445.73
465.51
467.50
478.79
71.01
74.88
78.12
87.58
82.65
96.01
76.40
86.05
80.13
81.00
79.00
83.82
80.59
85.78
78.97
90.00
83.12
96.77
80.21
96.89
84.08
98.61
11.39
12.67
11.79
11.74
12.26
12.87
12.74
11.97
11.89
13.08
12.21
5.92
6.53
6.40
7.06
7.25
7.04
25.17
8.04
9.95
7.08
7.03
6.48
7.29
7.72
7.48
6.78
7.44
6.58
7.07
9.31
7.06
8.07
6.84
7.20
8.17
10.15
7.11
7.10
8.60
7.42
7.13
10.94
7.78
31.63
13.25
168.65
31.90
14.60
183.44
33.09
16.47
203.60
33.32
12.84
176.29
31.59
14.56
180.72
32.55
13.81
186.15
33.79
14.26
189.82
33.54
15.25
193.87
32.70
16.92
198.70
35.71
15.71
202.79
34.39
15.79
207.86
1. Anticipated by business.
2. "Other" consists of construction; wholesale and retail trade; finance and
1988
19891
insurance; personal and business services; and communication.
SOURCE. Survey of Current Business (Department of Commerce).
A36
DomesticNonfinancialStatistics • August 1989
Assets and Liabilities1
1.51 DOMESTIC FINANCE COMPANIES
Billions of dollars, end of period
1986
Account
1983
1984
1987
1985
Q2
Q3
Q4
Q1
Q2
Q3
Q4
ASSETS
Accounts receivable, gross
Consumer
Business
Real estate
Total
83.3
113.4
20.5
217.3
89.9
137.8
23.8
251.5
111.9
157.5
28.0
297.4
123.4
166.8
29.8
320.0
135.3
159.7
31.0
326.0
134.7
173.4
32.6
340.6
131.1
181.4
34.7
347.2
134.7
188.1
36.5
359.3
141.6
188.3
38.0
367.9
141.1
207.6
39.5
388.2
Less:
5 Reserves for unearned income
6 Reserves for losses
30.3
3.7
33.8
4.2
39.2
4.9
40.7
5.1
42.4
5.4
41.5
5.8
40.4
5.9
41.2
6.2
42.5
6.5
45.3
6.8
7 Accounts receivable, net
8 All other
183.2
34.4
213.5
35.7
253.3
45.3
274.2
49.5
278.2
60.0
293.3
58.6
300.9
59.0
311.9
57.7
318.9
64.5
336.1
58.2
9 Total assets
217.6
249.2
298.6
323.7
338.2
351.9
359.9
369.6
383.4
394.3
18.3
60.5
20.0
73.1
18.0
99.2
16.3
108.4
16.8
112.8
18.6
117.8
17.2
119.1
17.3
120.4
15.9
124.2
16.4
128.4
11.1
67.7
31.2
28.9
12.9
77.2
34.5
31.5
12.7
94.4
41.5
32.8
15.8
106.9
40.9
35.4
16.4
111.7
45.0
35.6
17.5
117.5
44.1
36.4
21.8
118.7
46.5
36.6
24.8
121.8
49.1
36.3
26.9
128.2
48.6
39.5
28.0
137.1
52.8
31.5
217.6
249.2
298.6
323.7
338.2
351.9
359.9
369.6
383.4
394.3
1
2
3
4
LIABILITIES
10 Bank loans
It Commercial paper
Debt
12 Other short-term
13 Long-term
14 All other liabilities
15 Capital, surplus, and undivided profits
16 Total liabilities and capital
1. NOTE. Components may not add to totals because of rounding.
1.52 DOMESTIC FINANCE COMPANIES
Data after 1987:4 are currently unavailable. It is anticipated that these data will
be available later this year.
Business Credit Outstanding and Net Change1
Millions of dollars, seasonally adjusted
1988
1989
Type
1 Total
?
3
4
5
6
7
8
9
10
11
12
13
Retail financing of installment sales
Automotive
Equipment
Pools of securitized assets 2
Wholesale
Automotive
Equipment
All other
Pools of securitized assets
Leasing
Automotive
Equipment
Pools of securitized assets
Loans on commercial accounts receivable and factored
commercial accounts receivable
All other business credit
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
156,297
172,060
205,810
233,699
234,529
235,969
237,378
240,186
244,882
20,660
22,483
n.a.
26,015
23,112
n.a.
35,782
25,170
n.a.
36,444
28,214
n.a.
36,548
28,298
n.a.
37,041
28,429
724
37,301
28,385
682
37,696
28,207
855
38,415
28,790
817
23,988
4,568
6,809
n.a.
23,010
5,348
7,033
n.a.
30,507
5,600
8,342
n.a.
32,201
5,980
9,037
n.a.
33,300
5,983
9,341
n.a.
33,664
6,183
9,493
0
34,386
6,193
9,569
0
33,528
6,088
9,682
0
34,383
6,153
9,852
0
16,275
34,768
n.a.
19,827
38,179
n.a.
21,952
43,335
n.a.
24,621
56,973
n.a.
24,673
57,455
n.a.
24,558
58,354
721
24,847
58,045
699
25,584
59,484
756
25,544
60,246
733
15,765
10,981
15,978
13,557
18,078
17,043
19,407
20,822
17,796
21,134
16,688
20,114
17,404
19,867
17,794
20,512
18,677
21,272
Net change
14
15
16
17
18
19
20
21
V,
23
24
25
26
Retail financing of installment sales
Automotive
Equipment
Pools of securitized assets
Wholesale
Automotive
Equipment
All other
Pools of securitized assets
Leasing
Automotive
Equipment
Pools of securitized assets
Loans on commercial accounts receivable and factored
commercial accounts receivable
All other business credit
19,607
15,763
33,750
2,396
829
-4
1,409
2,808
4,696
5,067
-363
n.a.
5,355
629
n.a.
9,767
2,058
n.a.
-235
371
n.a.
105
84
n.a.
493
131
n.a.
260
-43
-42
394
-178
173
720
583
-38
5,423
-867
1,069
n.a.
-978
780
224
n.a.
7,497
252
1,309
n.a.
-15
104
146
n.a.
1,099
3
303
n.a.
364
200
152
n.a.
722
10
76
0
-858
-105
114
0
856
65
170
0
3,896
2,685
n.a.
3,552
3,411
n.a.
2,125
5,156
n.a.
346
699
n.a.
52
482
n.a.
-115
-506
n.a.
289
-310
-22
736
1,439
57
-40
762
-23
2,161
536
213
2,576
2,100
3,486
480
501
-1,611
312
-1,108
385
716
-247
390
645
883
760
1. These data also appear in the Board's G.20 (422) release. For address, see
inside front cover.
2. Data on pools of securitized assets are not seasonally adjusted,
Real Estate
A37
1.53 MORTGAGE MARKETS
M i l l i o n s o f dollars; e x c e p t i o n s n o t e d .
1989
1988
Item
1986
1987
1988
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
6
Conventional mortgages on new homes
Terms
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 year)
Yield (percent per year)
7 F H L B B series 3
8 H U D series 4
118.1
86.2
75.2
26.6
2.48
9.82
137.0
100.5
75.2
27.8
2.26
8.94
150.0
110.5
75.5
28.0
2.19
8.81
155.3
115.6
76.1
28.4
2.28
9.05
150.0
110.8
75.6
28.3
2.08
9.04
165.2
121.3
75.2
28.8
1.90
9.20
153.7
111.8
73.5
28.3
2.14
9.46
159.7
117.7
74.4
27.7
2.11
9.63
169.2'
124.5'
75.C
28.4'
1.7C
9.88'
151.0
111.5
75.2
28.2
2.11
9.82
10.26
10.07
9.31
10.17
9.18
10.30
9.43
10.37
9.39
10.67
9.52
10.55
9.82
10.75
9.99
10.93
10.17'
10.84
10.18
10.43
9.91
9.30
10.16
9.43
10.49
9.83
10.63
9.85
10.81
10.07
10.69
10.02
10.88
10.07
11.16
10.38
10.88
10.36
10.55
10.11
SECONDARY MARKETS
Yield (percent per year)
9 F H A mortgages ( H U D series)
10 G N M A securities 6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12
FHA/V A-insured
13
Conventional
98,048
29,683
68,365
95,030
21,660
73,370
101,329
19,762
81,567
102,6%
19,467
83,228
103,013
19,415
83,598
102,370
19,354
83,016
101,922
19,275
82,647
101,991
19,337
82,654
102,191
19,607
82,584
102,564
19,612
82,952
Mortgage transactions
14 Purchases
30,826
20,531
23,110
1,5%
1,726
1,037
905
1,469
1,163
1,419
32,987
3,386
25,415
4,886
23,435
2,148
1,289
2,740
1,350
2,148
1,087
2,081
3,557
4,520
1,771
4,807
1,118
4,661
1,742
4,789
13,517
746
12,771
12,802
686
12,116
15,105
620
14,485
15,419
595
14,824
17,425
590
16,834
18,378
594
17,785
18,473
594
17,880
18,714
593
16,135
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
103,474
100,236
76,845
75,082
44,077
39,780
4,109
4,231
5,843
5,510
3,586
3,408
5,088
4,385
6,373
6,037
n.a.
5,491
n.a.
4,440
110,855
71,467
66,026
5,419
10,101
5,206
8,411
11,227
n.a.
n.a.
(during
period)
Mortgage
commitments1
15 Contracted (during period)
16 Outstanding (end of period)
FEDERAL HOME LOAN MORTGAGE CORPORATION
Mortgage holdings (end of period)*
17 Total
18
FHA/VA
19
Conventional
Mortgage transactions
20 Purchases
21 Sales
(during
Mortgage
commitments9
22 Contracted (during period)
period)
1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; compiled by the Federal Home Loan Bank
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and " 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 FHA/VA mortgages carrying
the prevailing ceiling rate. Monthly figures are averages of Friday figures from the
Wall Street Journal.
7. Includes some multifamily and nonprofit hospital loan commitments in
addition to 1- to 4-family loan commitments accepted in 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.
A38
DomesticNonfinancialStatistics • August 1989
1.54 MORTGAGE DEBT OUTSTANDING 1
Millions of dollars, end of period
1988
Type of holder, and type of property
1986
1987
1988
Q4
Q1
Q2
Q3
1 All holders.
2,597,175
2,943,222
3,200,411
2,943,222
2,984,027
3,058,006
3,132,353
2
3
4
5
1,698,524
247,831
555,039
95,781
1,925,189
273,899
655,266
88,868
2,115,184
287,611
711,093
86,523
1,925,189
273,899
655,266
88,868
1,951,400
278,144
666,461
88,022
2,012,270
278,919
679,037
87,780
2,067,929
281,468
695,774
87,182
1,507,289
502,534
235,814
31.173
222.799
12,748
1,700,820
591,151
275,761
33,296
267,663
14,431
1,852,593
665,458
313,897
34,715
301,236
15,610
1,700,820
591,151
275,761
33,296
267,663
14,431
1,723,937
604,468
280,757
33,728
275,360
14,623
1,764,221
628,383
295,425
34,184
283,598
15,176
1,813,470
649,135
306,118
33,855
293,772
15,390
777,312
558,412
97,059
121,236
605
193,842
12,827
20,952
149,111
10,952
33,601
856,945
598,886
106,359
150,943
908,355
648,275
108,319
151,016
856,945
598,886
106,359
150,943
863,245
603,516
107,722
151,251
872,450
615,795
106.367
149,536
895,230
636,794
106,377
151,307
233,814
15,361
23,681
185,592
9,180
44,966
' 2i2,375
13,226
22,524
166,722
9,903
40,349
13,226
22,524
166,722
9,903
40,349
' 2i4,815
13,653
22,723
168,774
9,665
41,409
' 220,870
14,172
23,021
174,086
9,591
42,518
''225,627
14,917
23,139
178,166
9,405
43,478
203.800
889
47
842
48,421
21,625
7,608
8,446
10,742
192,721
444
25
419
43,051
18,169
8,044
6,603
10,235
198,549
67
53
14
42,018
18,347
8,513
5,343
9,815
192,721
444
25
419
43,051
18,169
8,044
6,603
10,235
196,909
434
25
409
43,076
18,185
8,115
6,640
10,136
199,474
42
24
18
42,767
18,248
8,213
6,288
198,027
64
51
13
41,836
18,268
8,349
5,300
9,919
5,047
2,386
2,661
97,895
90,718
7,177
39,984
2,353
37,631
11,564
10,010
1,554
5,574
2,557
3,017
96,649
89,666
6,983
34,131
2,008
32,123
12,872
11,430
1,442
5,975
2,649
3,326
103,013
95,833
7,180
32,115
1,890
30,225
15,361
13,058
2,303
5,574
2,557
3,017
96,649
89,666
6,983
34,131
2,008
32,123
12,872
11,430
1,442
5,660
2,608
3,052
99,787
92,828
6,959
33,566
1,975
31,591
14,386
12,749
1,637
5,673
2,564
3,109
102.368
95,404
6,964
33,048
1,945
31,103
15,576
13,631
1,945
5,666
2,432
3,234
102,453
95,417
7,036
32,566
1,917
30,649
15,442
13,322
44 Mortgage pools or trusts
45 Government National Mortgage Association.
1- to 4-family
Multifamily
Federal Home Loan Mortgage Corporation .
1- to 4-family
Multifamily
Federal National Mortgage Association
1- to 4-family
Multifamily
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
565,428
262,697
256,920
5,777
171,372
166,667
4,705
97.174
95,791
1,383
348
142
718,297
317,555
309,806
7,749
212,634
205,977
6,657
139,960
137,988
1,972
245
121
809,448
340,527
331,257
9,270
224,967
218,513
6,454
178,250
172,331
5,919
104
26
718,297
317,555
309,806
7,749
212,634
205,977
6,657
139,960
137,988
1,972
245
754,045
322,616
314,728
7,888
216,155
209,702
6,453
157,438
153,253
4,185
106
23
782,802
333,177
324,573
8,604
220,684
214,195
6,489
167,170
121
732,071
318,703
310,473
8,230
214,724
208,138
6,586
145,242
142,330
2,912
172
65
132
74
63
61
38
40
63
61
58
49
41
42
38
41
59 Individuals and others
60
1- to 4-family
61 Multifamily
62 Commercial
63 Farm
320,658
177,374
66,940
53,315
23,029
331,384
171,317
75,437
63,272
21,358
339,821
173,128
77,917
67,868
20,908
331,384
171,317
75,437
63,272
21,358
331,110
169,459
76,071
64,378
340,266
177,108
76,572
65,488
21,098
338,054
172,527
77,310
67,191
1- to 4-family
Multifamily..
Commercial .
Farm
6 Selected financial institutions .
7 Commercial banks 2
8
1- to 4-family
9
Multifamily
10
Commercial
11
Farm
Savings institutions
1- to 4-family
Multifamily
Commercial
Farm
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
Finance companies4
23 Federal and related agencies
24 Government National Mortgage Association.
25
1- to 4-family
26
Multifamily
27 Farmers Home Administration
28
1- to 4-family
29
Multifamily
30
Commercial
31
Farm
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. Includes savings banks and savings and loan associations. Beginning 1987:1,
data reported by FSLIC-insured institutions include loans in process and other
contra assets (credit balance accounts that must be subtracted from the corresponding gross asset categories to yield net asset levels).
4. Assumed to be entirely 1- to 4-family loans.
''212,iii '
21,202
10,018
2,120
162,228
4,942
106
27
21,026
5. FmHA-guaranteed securities sold to the Federal Financing Bank were
reallocated from FmHA mortgage pools to FmHA mortgage holdings in 1986:4,
because of accounting changes by the Farmers Home Administration.
6. Outstanding principal balances of mortgage pools backing securities insured
or guaranteed by the agency indicated. Includes private pools which are not
shown as a separate line item.
7. 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.
Consumer Installment Credit
A39
1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change, seasonally adjusted
Millions of dollars
1989
1988
Holder, and type of credit
1987
1988
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar. r
Apr.
Amounts outstanding (end of period)
607,721
659,507
644,666
646,556
649,132
654,413
659,507
682,022
687,397
691,084
693,815
By major holder
Commercial banks
Finance companies
Credit urnons
Retailers3
Savings institutions
Gasoline companies
282,910
140,281
80,087
40,975
59,851
3,618
318,925
145,180
86,118
43,498
62,099
3,687
307,355
143,992
84,647
42,121
62,843
3,709
310,132
143,019
84,900
42,349
62,502
3,655
312,588
143,012
85,338
42,614
61,926
3,654
316,683
143,488
85,740
42,910
61,922
3,671
318,925
145,180
86,118
43,498
62,099
3,687
316,797
141,7%
87,093
40,986
62,867
3,655
318,423
143,419
87,813
41,052
63,109
3,677
318,558
143,070
88,412
41,300
62,575
3,682
320,745
144,378
89,135
41,301
61,727
3,787
By major type of credit
8 Automobile
9 Commercial banks
10 Credit unions
11 Finance companies
12 Savings institutions
265,976
109,201
40,351
98,195
18,228
281,174
123,259
41,326
97,204
19,385
279,585
119,383
41,296
98,705
20,201
279,243
120,525
41,250
97,257
20,211
278,902
120,939
41,293
96,877
19,793
279,926
122,392
41,316
96,657
19,561
281,174
123,259
41,326
97,204
19,385
286,382
122,160
41,707
87,968
19,506
288,768
122,983
41,964
88,789
19,464
288,755
123,065
42,162
89,567
19,182
289,507
123,882
42,418
90,268
18,807
13 Revolving
14 Commercial banks
15 Retailers
16 Gasoline companies
17 Savings institutions
18 Credit unions
153,884
99,119
36,389
3,618
10,367
4,391
174,792
117,572
38,692
3,687
10,151
4,691
167,125
111,516
37,471
3,709
9,809
4,621
168,273
112,691
37,682
3,655
9,614
4,632
170,131
114,180
37,919
3,654
9,724
4,653
173,030
116,593
38,170
3,671
9,923
4,673
174,792
117,572
38,692
3,687
10,151
4,691
176,716
111,133
36,176
3,655
10,479
4,785
178,570
111,706
36,257
3,677
10,722
4,866
182,615
112,499
36,489
3,682
10,832
4,941
184,382
114,056
36,497
3,787
10,884
5,024
19 Mobile home
20 Commercial banks
21 Finance companies
22 Savings institutions
26,387
9,220
7,762
9,406
25,744
8,974
7,186
9,583
26,277
9,140
7,369
9,768
26,185
9,119
7,334
9,732
26,033
9,225
7,194
9,614
26,005
9,224
7,197
9,584
25,744
8,974
7,186
9,583
26,036
8,974
7,376
9,687
25,992
8,974
7,308
9,710
24,143
8,844
5,687
9,613
23,964
8,836
5,659
9,468
23 Other
24 Commercial banks
25 Finance companies
26 Credit unions
27 Retailers
28 Savings institutions
161,475
65,370
34,324
35,344
4,586
21,850
177,798
69,120
40,790
40,102
4,807
22,981
171,679
67,316
37,918
38,730
4,650
23,065
172,855
67,798
38,428
39,018
4,667
22,945
174,066
68,244
38,941
39,392
4,694
22,794
175,452
68,474
39,633
39,752
4,739
22,854
177,798
69,120
40,790
40,102
4,807
22,981
192,887
74,532
46,453
40,601
4,809
23,196
194,068
74,760
47,322
40,983
4,795
23,214
195,571
74,151
47,816
41,309
4,811
22,947
195,963
73,971
48,451
41,694
4,804
22,568
1 Total
2
3
4
5
6
7
Net change (during period)
35,674
51,786
5,459
1,890
2,576
5,281
5,094
22,514
5,375
3,687
2,731
By major holder
Commercial banks
Finance companies
Credit unions
Retailers
Savings institutions
Gasoline companies
19,884
6,349
3,852
1,568
3,689
331
36,015
4,899
6,032
2,523
2,249
69
5,072
-782
761
98
306
4
2,777
-973
254
228
-341
-54
2,457
-7
438
265
-576
-1
4,094
476
402
296
-4
17
2,242
1,692
378
589
178
15
-2,127
-3,383
975
-2,513
768
-32
1,626
1,622
720
67
242
22
135
-349
599
247
-535
6
2,187
1,308
723
2
-848
104
By major type of credit
36 Automobile
37 Commercial banks
38 Credit unions
39 Finance companies
40 Savings institutions
18,663
7,919
1,917
5,639
3,188
15,198
14,058
975
-991
1,157
1,926
2,531
204
-1,026
218
-342
1,142
-46
-1,448
10
-341
414
42
-380
-418
1,024
1,453
23
-220
-233
1,248
868
10
547
-176
5,208
-1,100
381
-9,236
121
2,386
823
257
821
-42
-13
82
198
778
-282
752
817
256
701
-375
41 Revolving
42 Commercial banks
43 Retailers
44 Gasoline companies
45
Savings institutions
46 Credit unions
16,871
12,188
1,866
331
1,771
715
20,908
18,452
2,303
69
-216
300
1,782
1,748
85
4
-94
39
1,148
1,175
211
-54
-195
11
1,858
1,489
237
-1
111
21
2,899
2,413
251
17
198
19
1,762
979
521
15
228
18
1,924
-6,439
-2,515
-32
328
94
1,854
573
81
22
243
81
4,046
793
232
6
110
75
1,766
1,557
8
104
52
83
47 Mobile home
48 Commercial banks
49 Finance companies
50 Savings institutions
-968
191
-1,052
-108
-643
-245
-576
177
65
43
-43
64
-93
-21
-35
-36
-152
106
-140
-118
-27
-1
3
-29
-262
-250
-11
-1
-44
1
-68
23
-1,849
-131
-1,621
-97
-179
-7
-28
-145
51 Other
52 Commercial banks
53 Finance companies
54 Credit unions
55 Retailers
56 Savings institutions
1,108
-415
1,761
1,221
-297
-1,162
16,324
3,749
6,466
4,758
221
1,131
1,686
750
287
518
13
117
1,177
482
511
288
16
-120
1,211
447
512
374
28
-150
1,386
230
693
359
45
59
2,346
646
1,156
350
68
127
1,180
229
869
382
-14
18
1,503
-609
494
326
16
-266
392
-180
635
385
-7
-380
29 Total
30
31
32
33
34
35
I. 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.
293
-1
189^
104
15,089
5,412
5,663
500
3
215
These data also appear in the Board's G.19 (421) release. For address, see
inside front cover.
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.
A40
DomesticNonfinancialStatistics • August 1989
1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1
Percent unless noted otherwise
1988
Item
1986
1987
1989
1988
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
INTEREST RATES
1
2
3
4
5
6
Commercial banks 2
48-month new car 3
24-month personal
120-month mobile home3
Credit card
Auto finance companies
New car
Used car
OTHER TERMS
7
8
9
10
11
12
Maturity (months)
New car
Used car
Loan-to-value ratio
New car
Used car
Amount financed (dollars)
New car
Used car
11.33
14.82
13.99
18.26
10.45
14.22
13.38
17.92
10.85
14.68
13.54
17.78
n.a.
n.a.
n.a.
n.a.
11.22
15.06
13.61
17.77
n.a.
n.a.
n.a.
n.a.
11.76
15.22
14.00
17.83
n.a.
n.a.
9.44
15.95
10.73
14.60
12.60
15.11
13.10
15.67
13.20
15.75
13.25
15.80
13.27
15.57
13.07
15.90
13.07
16.12
12.10
16.39
50.0
42.6
53.5
45.2
56.2
46.7
56.3
46.3
56.2
46.2
56.3
46.0
56.2
47.8
55.7
47.4
55.4
47.1
53.4
47.8
91
97
93
98
94
98
94
99
94
98
94
98
94
97
92
98
92
97
91
97
10,665
6,555
11,203
7,420
11,663
7,824
11,845
7,944
11,975
7,991
12,068
8,022
11,956
8,006
11,819
8,022
11,867
7,958
11,886
7,855
4
1. These data also appear in the Board's G.19 (421) release. For address, see
inside front cover.
2. Data for midmonth of quarter only.
n.a.
3. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
4. At auto finance companies.
Flow of Funds
A41
1.57 FUNDS RAISED IN U.S. CREDIT MARKETS
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1987'
Transaction category, sector
1984
1985
1986
1987
1989
1988'
1988
Q3
Q4
Qi
Q2
Q3
Q4
Ql'
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors
750.8
846.3
837.5
689.0
741.4
659.8
780.3
723.9
710.4
767.8
763.7
742.6
By sector and instrument
2 U.S. government
3 Treasury securities
4 Agency issues and mortgages
198.8
199.0
-.2
223.6
223.7
-.1
215.0
214.7
.4
144.9
143.4
1.5
157.5
140.0
17.4
103.1
104.0
-.9
168.2
163.2
5.0
227.7
228.2
-.5
89.2
81.5
7.7
188.6
167.7
20.9
124.4
82.8
41.6
214.4
215.6
-1.2
5 Private domestic nonfinancial sectors
6 Debt capital instruments
7
Tax-exempt obligations
8
Corporate bonds
9
Mortgages
10
Home mortgages
11
Multifamily residential
Commercial
12
13
Farm
552.0
319.3
50.4
46.1
222.8
136.7
25.2
62.2
-1.2
622.7
452.3
136.4
73.8
242.2
156.8
29.8
62.2
-6.6
622.5
468.4
30.8
121.3
316.3
218.7
33.5
73.6
-9.5
544.0
459.0
34.5
99.9
324.5
234.9
24.4
71.6
-6.4
584.0
426.1
33.1
97.2
295.8
220.0
16.3
61.6
-2.1
556.6
441.2
32.7
100.7
307.8
225.0
23.3
64.3
-4.7
612.2
430.3
33.5
81.6
315.3
222.8
16.1
78.3
-1.9
496.2
358.9
22.8
101.4
234.6
169.6
23.9
47.3
-6.1
621.2
474.8
30.6
117.9
326.3
270.7
4.2
52.7
-1.4
579.3
446.7
41.4
90.3
315.0
231.9
16.0
69.4
-2.4
639.3
423.9
37.5
79.1
307.3
207.8
20.9
77.1
1.5
528.2
372.2
19.7
82.1
270.3
187.4
26.6
61.5
-5.2
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
232.7
81.6
67.1
21.7
62.2
170.3
82.5
38.6
14.6
34.6
154.1
58.0
65.0
-9.3
40.5
85.1
32.9
10.8
2.3
39.1
157.9
51.1
47.5
11.6
47.7
115.4
54.0
21.7
1.0
38.7
181.8
56.5
75.2
3.9
46.2
137.3
38.6
34.7
-3.8
67.8
146.4
57.5
72.4
4.0
12.5
132.5
31.8
10.7
11.1
78.9
215.4
76.3
72.1
35.1
31.9
156.1
34.9
38.3
34.4
48.4
19
20
21
22
23
24
25
By borrowing sector
State and local governments
Households
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
552.0
27.4
231.5
293.1
-.4
123.2
170.3
622.7
91.8
283.6
247.3
-14.5
129.3
132.4
622.5
44.3
289.2
288.9
-16.3
103.2
202.0
544.0
34.0
267.8
242.2
-10.6
107.9
144.9
584.0
32.0
276.5
275.5
-4.0
85.3
194.2
556.6
34.8
287.3
234.5
-9.4
97.4
146.6
612.2
32.9
277.8
301.5
3.3
116.0
182.1
496.2
17.5
212.6
266.0
-15.7
86.3
195.5
621.2
27.6
330.6
262.9
-3.4
72.3
194.0
579.3
43.5
282.9
252.9
-2.6
96.0
159.5
639.3
39.4
279.8
320.1
5.5
86.7
227.8
528.2
26.0
251.7
250.5
-2.7
78.5
174.6
26 Foreign net borrowing in United States
27 Bonds
28 Bank loans n.e.c
29 Open market paper
30 U.S. government loans
8.4
3.8
-6.6
6.2
5.0
1.2
3.8
-2.8
6.2
-5.9
9.6
3.0
-1.0
11.5
-3.9
4.3
6.8
-3.6
2.1
-1.0
5.9
6.7
-1.8
9.6
-8.6
12.3
6.7
-3.7
21.6
-12.3
13.9
21.6
-6.1
-2.5
.8
-1.0
16.8
.7
1.5
-19.9
5.2
-2.7
-3.5
6.4
5.1
4.4
6.5
2.9
10.7
-15.8
15.0
6.3
-7.4
20.0
-3.9
-7.9
9.5
1.5
11.6
-30.4
31 Total domestic plus foreign
759.2
847.5
847.1
693.3
747.3
672.0
794.2
722.9
715.6
772.2
778.6
734.7
Financial sectors
148.7
198.3
307.0
303.3
254.9
306.4
250.2
193.3
263.3
227.2
335.7
358.1
By instrument
33 U.S. government related
34 Sponsored credit agency securities
35 Mortgage pool securities
36
74.9
30.4
44.4
101.5
20.6
79.9
1.1
187.9
15.2
173.1
-.4
185.8
30.2
156.4
-.7
137.5
44.9
92.6
185.5
32.0
153.5
167.5
71.6
95.9
120.3
56.8
63.4
101.8
9.4
92.4
150.6
42.8
107.8
177.2
70.5
106.7
205.7
81.7
124.0
37 Private financial sectors
38 Corporate bonds
39 Mortgages
40 Bank loans n.e.c
41 Open market paper
42 Loans from Federal Home Loan Banks
73.8
33.0
.4
.7
24.1
15.7
96.7
47.9
.1
2.6
32.0
14.2
119.1
70.9
.1
4.0
24.2
19.8
117.5
67.2
.4
-3.3
28.8
24.4
117.4
50.7
-.1
-6.6
53.6
19.7
120.8
77.7
.2
6.3
14.3
22.2
82.7
42.4
.8
-10.7
5.4
44.9
73.1
70.1
-.1
-26.8
24.6
5.4
161.5
60.5
76.6
32.5
8.7
82.2
10.1
-8.6
26.1
26.6
158.5
39.7
-.2
.6
81.7
36.8
152.4
31.0
.1
-4.6
61.6
64.4
148.7
198.3
307.0
303.3
254.9
306.4
250.2
193.3
263.3 •
227.2
335.7
358.1
30.4
44.4
73.8
7.3
15.6
22.7
18.2
.8
9.3
21.7
79.9
96.7
-4.9
14.5
22.3
52.7
.5
11.5
14.9
173.1
119.1
-3.6
4.6
29.8
48.4
1.0
39.0
29.5
156.4
117.5
7.1
2.9
34.9
32.7
.8
39.1
44.9
92.6
117.4
-3.9
1.4
37.8
47.8
1.7
32.5
32.0
153.5
120.8
-13.1
11.3
43.4
34.0
2.5
42.7
71.6
95.9
82.7
15.0
-22.6
48.7
33.4
2.2
6.0
56.8
63.4
73.1
-22.4
-8.5
8.6
51.4
1.0
43.0
9.4
92.4
161.5
6.2
11.4
17.1
93.7
1.7
31.5
42.8
107.8
76.6
-8.3
7.6
54.4
1.2
-1.4
23.1
70.5
106.7
158.5
8.9
-4.9
71.0
45.1
5.8
32.5
81.7
124.0
152.4
1.8
8.8
72.7
53.6
.8
14.7
32 Total net borrowing by financial sectors
By sector
43
44
45
46
47
48
49
50
51
52
Sponsored credit agencies
Mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Savings and loan associations
Finance companies
REITs
CMO Issuers
*
*
A42
DomesticNonfinancialStatistics • August 1989
1.57—Continued
1988
1987
Transaction category, sector
1984
1985
1986
1987
1989
1988'
Q3
Q4
Q1
Q2
Q3'
Q4'
Ql
All sectors
1,045.7 i , i 5 4 . r
53 Total net borrowing
907.9
54
55
56
57
58
59
60
61
273.8
50.4
83.0
223.1
81.6
61.1
52.0
82.9
324.2
136.4
125.4
242.2
82.5
38.3
52.8
44.0
6.3
14.4
744.5
192.5
831.9
209.3
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
62 MEMO: U.S. government, cash balance
Totals net of changes in U.S. government cash balances
63
Net borrowing by domestic nonfinancial
64
Net borrowing by U.S. government
403.4'
30.8
195.2
316.4'
ss^
26.4
56.1
*
837.5'
215.0
996.6' 1,002.2
978.4' 1,044.4'
916.2'
978.9'
999.4
331.5
34.5
174.0
324.9'
32.9'
3.8'
33.2
61.8'
294.9
33.1
154.6
295.7
51.1
39.1
74.9
58.8
288.6
32.7
185.1
308.0'
54.0'
24.3'
36.9
48.7
335.7
33.5
145.6
316.1'
56.5'
58.4'
6.7
91.9'
347.9
22.8'
188.2'
234.5'
38.6'
8.6'
22.3
53.3'
191.0
30.6'
175.8'
326.3'
57.5'
77.6'
92.5
27.7'
339.2
41.4
129.4
315.0
31.8
5.0
48.0
89.7
301.6
37.5
125.1
307.1
76.3
65.3
136.8
64.7
420.1
19.7
122.7
270.4
34.9
35.1
107.6
82.4
-7.9
10.4
-19.6
-54.7
60.9
3.3
16.2
-38.8
-4.3
696.9'
152.8
731.1
147.1
679.4'
122.7
sss.o'
222.8
663.0'
166.8
751.7
172.4
802.5
163.2
747.0
218.7
707.1'
86.0
1,114.4 1,092.8
External corporate equity funds raised in United States
65 Total net share issues
-36.0
20.1
93.9
13.5
-115.0
-47.1
-82.7
-75.6
-131.1
-84.1
-169.1 -143.1
66
67
68
69
70
29.3
-65.3
-74.5
8.2
.9
84.4
-64.3
-81.5
13.5
3.7
161.8
-68.0
-80.7'
11.5
1.3
72.3
-58.8
-76.5
20.1
-2.4
-.4
-114.5
-130.5
15.2
.7
13.8
-60.9
-78.0
18.4
-1.3
-9.1
-73.6
-88.0
26.4
-12.0
5.0
-8.0
- 8 0 . 5 -123.1
- 9 5 . 0 -140.0
15.2
23.4
-.7
-6.5
0.3
-84.4
-92.0
6.4
1.2
1.1
19.1
-170.2 -162.2
-195.0 -180.0
15.9
13.7
9.0
4.1
Mutual funds
All other
Nonfinancial corporations
Financial corporations
Foreign shares purchased in United States
Flow of Funds
A43
1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates.
1988r
1987r
Transaction category, or sector
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
1984
1985
1986
1987
1989
1988
Q3
Q4
Ql
Q2
Q3
Q4
Ql
750.8
846.3
837.5
689.0
741.4
659.8
780.3
723.9
710.4
767.8
763.7
742.6
157.6
38.9
56.5
15.7
46.6
193.1
37.9
94.6
14.2
46.3
314.0
69.4
170.1
19.8
54.6
256.7
68.2
153.2
24.4
10.9
239.1
84.8
104.0
19.7
30.5
211.1
35.1
146.0
22.2
7.8
265.4
123.3
102.7
44.9
-5.5
262.5
148.6
83.6
5.4
24.9
166.1
42.4
106.7
10.1
6.8
222.5
25.8
108.3
26.6
61.9
305.1
122.3
117.5
36.8
28.4
336.2
87.6
126.2
64.4
58.1
17.1
74.3
8.4
57.9
16.8
95.5
18.4
62.3
9.7
187.2
19.4
97.8
-11.9
181.4
24.7
62.5
-7.3
131.2
10.5
104.7
-24.1
187.0
29.0
19.1
-2.6
156.6
30.4
81.0
-8.8
103.1
-5.5
173.7
-20.3
103.4
4.1
78.9
9.4
138.9
17.1
57.2
-9.5
179.2
26.5
108.9
7.3
216.0
-4.9
117.8
74.9
8.4
101.5
1.2
187.9
9.6
185.8
4.3
137.5
5.9
185.5
12.3
167.5
13.9
120.3
-1.0
101.8
5.2
150.6
4.4
177.2
15.0
205.7
-7.9
Private domestic funds advanced
13 Total net advances
14 U.S. government securities
15 State and local obligations
16 Corporate and foreign bonds
17 Residential mortgages
18 Other mortgages and loans
19 LESS: Federal Home Loan Bank advances
676.4
234.9
50.4
35.1
105.3
266.3
15.7
756.0
286.2
136.4
40.8
91.8
214.9
14.2
721.0
333.9
30.8
84.1
82.0
210.0
19.8
622.5
263.3
34.5
86.5
106.1
156.5
24.4
645.7
210.2
33.1
81.0
132.2
209.0
19.7
646.4
253.5
32.7
83.7
102.3
196.4
22.2
696.3
212.4
33.5
102.9
136.2
256.3
44.9
580.6
199.3
22.8
115.7
109.9
138.3
5.4
651.3
148.6
30.6
90.2
168.2
223.8
10.1
700.3
313.4
41.4
65.1
139.7
167.3
26.6
650.8
179.3
37.5
53.0
111.1
306.6
36.8
604.2
332.5
19.7
54.6
87.9
173.8
64.4
Private financial intermediation
70 Credit market funds advanced by private financial
institutions
Commercial banking
71
Savings institutions
7?
73 Insurance and pension funds
24 Other finance
581.0
168.9
150.2
121.8
140.1
569.8
186.3
83.0
148.9
151.6
747.0
194.8
106.2
181.9
264.2
566.6
136.7
141.7
211.9
76.3
587.6
156.0
121.1
222.2
88.3
643.7
151.4
191.5
247.5
53.3
553.8
253.1
155.6
154.3
-9.2
658.1
56.8
85.3
279.3
236.7
593.3
213.8
92.9
228.9
57.8
473.2
141.3
186.3
173.9
-28.4
626.0
212.2
119.9
206.8
87.2
586.9
96.8
80.6
259.1
150.3
75 Sources of funds
76 Private domestic deposits and RPs
77 Credit market borrowing
78 Other sources
79
Foreign funds
Treasury balances
30
31
Insurance and pension reserves
Other, net
32
581.0
321.9
73.8
185.3
8.8
4.0
124.0
48.5
569.8
210.6
96.7
262.5
19.7
10.3
131.9
100.7
747.0
264.7
119.1
363.2
12.9
1.7
144.3
204.4
566.6
145.6
117.5
303.5
43.7
-5.8
176.1
89.6
587.6
198.4
117.4
271.8
9.2
7.3
219.9
35.4
643.7
193.9
120.8
329.0
99.5
6.1
196.1
27.2
553.8
265.6
82.7
205.5
25.2
-36.1
120.3
96.0
658.1
283.6
73.1
301.3
-80.1
53.3
265.2
62.9
593.3
135.1
161.5
296.7
106.6
-17.5
240.0
-32.4
473.2
167.3
76.6
229.2
-50.4
8.7
149.9
121.0
626.0
207.5
158.5
260.0
60.7
-15.2
224.3
-9.9
586.9
127.3
152.4
307.2
-36.3
-8.4
263.6
88.3
Private domestic nonfinancial investors
33 Direct lending in credit markets
34 U.S. government securities
35 State and local obligations
36 Corporate and foreign bonds
37 Open market paper
38 Other
169.2
115.4
26.5
-.8
4.0
24.2
282.9
175.7
39.6
2.4
45.6
19.6
93.1
59.9
-13.6
32.6
-3.6
17.9
173.3
104.4
46.1
5.3
4.3
13.3
175.5
146.5
20.0
-12.7
14.9
6.8
123.6
70.3
42.4
28.3
-29.7
12.2
225.1
117.8
56.0
42.1
-9.5
18.7
-4.4
114.4
-.5
-39.0
-71.5
-7.8
219.5
87.3
18.3
36.6
76.1
1.2
303.7
247.0
27.9
-29.2
54.0
3.9
183.3
137.2
34.4
-19.4
1.0
30.1
169.7
194.6
7.7
-.2
-2.0
-30.3
39 Deposits and currency
40 Currency
41 Checkable deposits
47
Small time and savings accounts
43 Money market fund shares
44 Large time deposits
45 Security RPs
46 Deposits in foreign countries
325.4
8.6
28.0
150.7
49.0
84.3
10.0
-5.1
220.9
12.4
40.9
138.5
8.9
7.7
14.6
-2.1
285.0
14.4
93.2
120.6
41.5
-11.4
20.8
5.9
161.8
19.0
-2.1
76.0
28.2
26.7
16.9
-2.8
205.9
14.7
12.2
120.6
23.8
32.3
9.5
-7.3
229.3
17.3
35.4
80.2
32.7
-1.0
46.6
18.1
316.3
36.8
14.3
124.1
63.3
89.4
-25.6
13.9
278.6
8.2
4.5
189.1
59.1
11.7
19.3
-13.3
136.3
11.9
18.5
152.4
-34.8
-15.7
14.7
-10.7
194.1
28.6
-23.8
70.5
3.0
122.0
-4.4
-1.8
214.4
10.2
49.6
70.4
67.9
11.2
8.2
-3.3
138.1
9.8
-59.6
50.7
59.5
55.9
20.7
1.0
47 Total of credit market instruments, deposits, and
currency
494.6
503.7
378.1
335.1
381.4
352.9
541.5
274.2
355.8
497.8
397.7
307.8
20.7
85.8
66.7
22.7
75.3
82.0
37.0
103.6
110.7
37.0
91.0
106.2
31.9
90.9
113.9
31.4
99.5
118.7
33.4
79.5
106.2
36.3
113.3
93.6
23.2
91.0
185.5
28.8
67.5
6.8
39.1
96.1
169.7
45.7
97.1
81.5
MEMO: Corporate equities not included above
51 Total net issues
-36.0
20.1
93.9
13.5 -115.0
-47.1
-82.7
-75.6
-131.1
57 Mutual fund shares
53 Other equities
54 Acquisitions by financial institutions
55 Other net purchases
29.3
-65.3
15.8
-51.8
84.4
-64.3
45.6
-25.5
161.8
-68.0
48.5
45.4
-.4
-114.5
4.8
-119.7
13.8
-60.9
5.2
-52.4
-9.1
-73.6
-16.5
-66.2
5.0
-80.5
-35.7
-39.9
-8.0
0.3
1.1
19.1
-123.1 -84.4 -170.2 -162.2
4.1
-6.8
22.4
39.1
-124.3 -106.5 -208.2 -147.2
7
3
4
5
6
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to savings and loans
Other loans and securities
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
Agency and foreign borrowing not in line 1
11 Sponsored credit agencies and mortgage pools
12 Foreign
7
8
9
10
48
49
50
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
NOTES BY LINE NUMBER.
1. Line 1 of table 1.57.
2. Sum of lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities.
13. 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.
18. Includes farm and commercial mortgages.
26. Line 39 less lines 40 and 46.
27. Excludes equity issues and investment company shares. Includes line 19.
29. 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.
30. Demand deposits and note balances at commercial banks.
72.3
-58.8
22.6
-9.1
-84.1 -169.1 -143.1
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
DomesticNonfinancialStatistics • August 1989
1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING
Billions of dollars; period-end levels.
1987
19 38'
1989
1986
Q3'
Q4
QI
Q2
Q3
Q4
QL
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
5,204.3
5,953.7
6,797.0
7,638.4'
8,099.4
8,330.0'
8,471.0
8,658.1
8,828.8
9,049.7
9,209.4
By sector and instrument
2 U.S. government
3 Treasury securities
4 Agency issues and mortgages
1,177.9
1,174.4
3.6
1,376.8
1,373.4
3.4
1,600.4
1,597.1
3.3
1,815.4
1,811.7
3.6
1,897.8
1,893.8
3.9
1,960.3
1,955.2
5.2
2,003.2
1,998.1
5.0
2,022.3
2,015.3
7.0
2,063.9
2,051.7
12.2
2,117.8
2,095.2
22.6
2,155.7
2,133.4
22.3
5 Private domestic nonfinancial sectors
6 Debt capital instruments
/
Tax-exempt obligations
8
Corporate bonds
9
Mortgages
10
Home mortgages
11
Multifamily residential
12
Commercial
13
Farm
4,026.4
2,717.8
471.7
423.0
1,823.1
1,200.2
158.8
350.4
113.7
4,577.0
3,040.0
522.1
469.2
2,048.8
1,336.2
183.6
416.5
112.4
5,196.6
3,488.4
658.4
542.9
2,287.1
1,490.2
213.0
478.1
105.9
5,823.0'
3,967.6'
689.2
664.2
2,614.2'
1,720.8'
246.2'
551.4
95.8
6,201.7
4,327.4
715.5
743.7
2,868.2
1,884.2
265.0
629.1
90.0
6,369.7'
4,438.5'
723.7
764.1
2,950.7'
1,943.1'
270.0
648.7'
88.9
6,467.8
4,512.2
727.5
789.5
2,995.3
1,972.0
274.5
660.8
88.0
6,635.8
4,635.3
734.8
819.0
3,081.6
2,043.3
276.3
674.1
87.8
6,764.9
4,737.8
747.6
841.5
3,148.6
2,105.0
279.5
677.1
87.0
6,931.9
4,848.3
756.8
861.3
3,230.2
2,160.9
285.9
696.6
86.8
7,053.7
4,933.0
764.9
881.8
3,286.3
2,195.6
291.4
713.1
86.2
14
15
16
1/
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
1,308.6
437.7
490.2
36.8
344.0
1,536.9
519.3
552.9
58.5
406.2
1,708.2
601.8
592.6
72.2
441.6
1,855.5'
659.8'
654.2'
62.9
478.6
1,874.3
674.8
637.6
68.1
493.7
1,931.1'
692.7'
654.4'
73.8
510.3'
1,955.6
688.9
665.6
73.5
527.5
2,000.5
705.8
685.7
77.8
531.2
2,027.1
721.2
686.5
80.3
539.1
2,083.6
743.7
701.9
85.4
552.7
2,120.8
746.6
713.5
95.5
565.1
19
20
21
22
2i
24
25
By borrowing sector
State and local governments
Households
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
4,026.4
357.7
1,811.6
1,857.1
188.4
645.8
1,022.9
4,577.0
385.1
2,038.2
2,153.7
187.9
769.0
1,196.8
5,196.6
476.9
2,314.5
2,405.2
173.4
898.3
1,333.5
5,823.0'
520.2
2,614.6'
2,688.3
156.6
1,001.6
1,530.1
6,201.7
546.2
2,787.3
2,868.2
148.5
1,076.4
1,643.3
6,369.7'
554.2
2,864.3'
2,951.2'
145.5
1,109.4'
1,696.3'
6,467.8
556.7
2,892.1
3,019.0
141.3
1,131.7
1,746.0
6,635.8
563.2
2,982.3
3,090.2
143.9
1,148.9
1,797.4
6,764.9
576.0
3,058.2
3,130.7
143.6
1,167.3
1,819.9
6,931.9
585.6
3,137.4
3,208.9
141.1
1,193.3
1,874.5
7,053.7
595.2
3,183.8
3,274.6
140.1
1,213.6
1,920.9
227.3
64.2
37.4
21.5
104.1
235.1
68.0
30.8
27.7
108.6
234.7'
71.8
27.9
33.9
101.R
236.2'
74.8
26.9
37.4
97.1'
237.0
75.9
24.2
40.6
96.3
242.3'
81.6
23.3
41.2
96.1'
243.2
85.4
22.8
42.5
92.4
244.4
85.2
22.4
44.0
92.7
244.6
86.5
22.7
46.3
89.1
248.2
88.3
21.5
50.9
87.5
248.4
90.3
21.1
55.5
81.5
5,431.6
6,188.8
7,031.7'
7,874.7'
8,336.4
8,572.3'
8,714.1
8,902.4
9,073.4
9,297.9
9,457.9
26 Foreign credit market debt held in
United States
27 Bonds
28 Bank loans n.e.c
29 Open market paper
30 U.S. government loans
31 Total domestic plus foreign
Financial sectors
32 Total credit market debt owed by
financial sectors
33
34
35
36
37
38
39
40
41
42
By instrument
U.S. government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. government
Private financial sectors
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks...
43
44
45
46
47
48
49
50
51
52
Sponsored credit agencies
Mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Savings and loan associations
Finance companies
REITs
CMO issuers
857.9
1,006.2
1,206.2
1,544.7'
1,783.8
1,862.8
1,897.7
1,969.7
2,027.3
2,117.7
2,196.8
456.7
206.8
244.9
5.0
401.2
115.8
2.1
28.9
195.5
59.0
531.2
237.2
289.0
5.0
475.0
148.9
2.5
29.5
219.5
74.6
632.7
257.8
368.9
6.1
573.4
197.5
2.7
32.1
252.4
88.8
844.2'
273.0
565.4'
5.7
700.5
268.4
2.7
36.1
284.6
108.6
981.6
283.7
692.9
5.0
802.1
324.2
2.9
42.2
312.7
120.1
1,026.5
303.2
718.3
5.0
836.3
335.6
3.1
40.8
323.8
133.1
1,050.6
313.5
732.1
5.0
847.1
352.2
3.1
31.7
330.6
129.5
1,076.9
317.9
754.0
5.0
892.8
367.1
3.1
34.3
353.4
134.8
1,116.3
328.5
782.8
5.0
911.1
375.6
3.1
32.9
358.0
141.6
1,164.0
348.1
810.9
5.0
953.8
386.3
3.0
34.2
377.4
152.8
1,209.0
364.3
839.7
5.0
987.8
393.1
3.1
30.6
397.4
163.8
857.9
1,006.2
1,206.2
1,544.7'
1,783.8
1,862.8
1,897.7
1,969.7
2,027.3
2,117.7
2,196.8
211.8
244.9
401.2
76.8
71.0
73.9
171.7
3.5
4.2
242.2
289.0
475.0
84.1
86.6
93.2
193.2
4.3
13.5
263.9
368.9
573.4
79.2
101.2
115.5
246.9
5.6
25.0
278.7
565.4'
700.5
75.6
101.3
145.1
308.1
6.5
64.0
288.7
692.9
802.1
78.6
109.5
165.0
340.7
6.8
101.6
318.5
732.1
847.1
76.4
103.5
176.1
369.6
7.6
113.9
322.9
754.0
892.8
77.2
106.6
186.8
392.5
8.0
121.8
333.5
782.8
911.1
76.6
106.4
197.8
395.1
7.6
127.5
353.1
810.9
953.8
78.8
105.6
218.7
406.0
9.1
135.7
369.3
839.7
987.8
78.9
109.3
230.7
420.4
9.3
139.3
10,611.8
10,872.1
11,100.8
11,415.6
11,654.7
3,048.8
727.5
1,227.1
2,998.4
688.9
720.1
446.7
754.4
3,094.2
734.8
1,271.3
3,084.7
705.8
742.4
475.3
763.7
3,175.2
747.6
1,303.6
3,151.7
721.2
742.1
484.6
774.7
3,276.7
756.8
1,336.0
3,233.3
743.7
757.5
513.6
797.9
3,359.7
764.9
1,365.2
3,289.3
746.6
765.2
548.4
815.4
308.2
718.3
836.3
82.7
104.2
180.0'
359.1'
7.3
103.1
All sectors
53 Total credit market debt
6,289.5
7,195.0
8,237.9'
9,419.4'
54
55
56
5/
58
59
60
61
1,629.4
471.7
603.0
1,825.4
437.7
556.5
253.8
512.1
1,902.8
522.1
686.0
2,051.4
519.3
613.2
305.7
594.4
2,227.0
658.4
812.1
2,289.8
601.8
652.6
358.5
637.6'
2,653.8'
689.2
1,007.4
2,617.0'
659.8'
717.2'
384.9
690.1'
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
10,120.2 10,435.1'
2,874.4
715.5
1,143.9
2,871.1
674.8
704.0
421.4
715.1
2,981.8
723.7
1,181.4
2,953.8'
692.7'
718.4'
438.8
744.5'
Flow of Funds
A45
1.60 SUMMARY OF CREDIT MARKET CLAIMS, BY HOLDER
Billions of dollars, except as noted; period-end levels.
1988r
1987'
Transaction category, or sector
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
1983
1984
1985
1989
1986'
Q3
Q4
Ql
Q2
Q3
Q4
Ql
5,204.3
5,953.7
6,797.0
7,638.4
8,099.4
8,330.0
8,471.0
8,658.1
8,828.8
9,049.7
9,209.4
1,101.7
339.0
367.0
59.0
336.8
1,259.2
377.9
423.5
74.6
383.1
1,457.5
421.8
518.2
88.8
428.7
1,791.2
491.2
712.3
108.6
479.0
1,965.1
525.6
834.6
120.1
484.8
2,036.2
559.4
862.0
133.1
481.8
2,092.2
592.7
880.6
129.5
489.4
2,138.8
607.1
906.1
134.8
490.8
2,188.3
610.3
934.9
141.6
501.6
2,269.9
644.2
966.0
152.8
506.9
2,343.9
662.1
995.1
163.8
522.9
7 Total held, by type of lender
8 U.S. government
9 Sponsored credit agencies and mortgage pools . . .
10 Monetary authority
11 Foreign
1,101.7
212.8
482.0
159.2
247.7
1,259.2
229.7
556.3
167.6
305.6
1,457.5
245.7
657.8
186.0
367.9
1,791.2
252.3
867.8
205.5
465.7
1,965.1
•235.2
1,003.7
219.6
506.7
2,036.2
233.0
1,044.9
230.1
528.2
2,092.2
231.4
1,064.0
224.9
572.0
2,138.8
227.0
1,091.6
229.7
590.5
2,188.3
224.3
1,128.9
230.8
604.4
2,269.9
220.3
1,176.1
240.6
632.9
2,343.9
222.8
1,223.0
235.4
662.7
Agency and foreign debt not in line 1
Sponsored credit agencies and mortgage pools . . .
Foreign
456.7
227.3
531.2
235.1
632.7
234.7
844.2
236.2
981.6
237.0
1,026.5
242.3
1,050.6
243.2
1,076.9
244.4
1,116.3
244.6
1,164.0
248.2
1,209.0
248.4
Private domestic holdings
14 Total private holdings
15 U.S. government securities
16 State and local obligations
17 Corporate and foreign bonds
18 Residential mortgages
19 Other mortgages and loans
20 LESS: Federal Home Loan Bank advances
4,786.6
1,290.4
471.7
441.7
992.2
1,649.6
59.0
5,460.8
1,524.9
522.1
476.8
1,096.5
1,915.2
74.6
6,207.0
1,805.2
658.4
517.6
1,185.1
2,129.5
88.8
6,927.6
2,162.6
689.2
601.7
1,254.7
2,328.1
108.6
7,353.0
2,348.8
715.5
663.4
1,314.6
2,430.7
120.1
7,562.5
2,422.4
723.7
688.1
1,351.1
2,510.2
133.1
7,672.5
2,456.0
727.5
716.3
1,366.0
2,536.2
129.5
7,840.5
2,487.0
734.8
740.6
1,413.6
2,599.2
134.8
8,001.3
2,564.9
747.6
756.9
1,449.6
2,623.8
141.6
8,192.0
2,632.6
756.8
769.1
1,480.8
2,705.4
152.8
8,323.0
2,697.6
764.9
782.1
1,491.9
2,750.2
163.8
Private financial intermediation
21 Credit market claims held by private financial
institutions
22 Commercial banking
23
Savings institutions
24
Insurance and pension funds
25 Other finance
4,111.2
1,622.1
944.0
1,093.5
451.6
4,691.0
1,791.1
1,092.8
1,215.3
591.7
5,264.4
1,978.5
1,178.4
1,364.2
743.4
6,010.1
2,173.2
1,283.6
1,546.0
1,007.1
6,434.5
2,249.0
1,397.3
1,716.0
1,072.2
6,594.8
2,309.9
1,436.2
1,758.0
1,090.7
6,728.4
2,322.7
1,441.7
1,823.3
1,140.7
6,895.8
2,378.2
1,484.6
1,879.5
1,153.5
6,999.4
2,417.3
1,513.0
1,925.0
1,144.0
7,169.6
2,465.9
1,544.4
1,980.5
1,179.0
7,294.3
2,490.1
1,551.9
2,040.1
1,212.2
26 Sources of funds
27 Private domestic deposits and RPs
28 Credit market debt
4,111.2
2,389.8
401.2
4,691.0
2,711.5
475.0
5,264.4
2,922.1
573.4
6,010.1
3,182.6
700.5
6,434.5
3,226.9
802.1
6,594.8
3,320.6
836.3
6,728.4
3,376.5
847.1
6,895.8
3,409.8
892.8
6,999.4
3,438.1
911.1
7,169.6
3,519.0
953.8
7,294.3
3,530.3
987.8
29
30
31
32
33
1,320.2
-23.0
11.5
1,036.1
295.6
1,504.5
-14.1
15.5
1,160.8
342.2
1,768.9
5.6
25.8
1,289.5
448.0
2,127.0
18.6
27.5
1,427.9
653.0
2,405.4
52.7
33.0
1,556.7
763.1
2,437.9
62.2
21.6
1,597.2
756.8
2,504.8
45.9
23.5
1,662.4
773.1
2,593.2
62.3
32.6
1,718.6
779.7
2,650.1
51.9
34.2
1,758.0
806.0
2,696.9
71.5
29.0
1,804.6
791.8
2,776.1
69.3
14.1
1,862.0
830.7
Private domestic nonfinancial investors
34 Credit market claims
35
U.S. government securities
36 Tax-exempt obligations
37 Corporate and foreign bonds
38 Open market paper
39 Other
1,076.6
548.6
170.0
45.4
68.4
244.3
1,244.8
663.6
196.3
44.5
72.4
268.0
1,516.0
830.7
235.9
47.6
118.0
283.8
1,618.1
915.1
222.3
80.1
114.3
286.2
1,720.6
971.0
255.9
80.6
114.9
298.2
1,804.0
1,012.3
268.3
84.8
136.3
302.3
1,791.2
1,022.4
265.1
82.7
119.1
301.9
1,837.5
1,036.2
271.9
88.9
139.4
301.1
1,913.0
1,102.4
281.2
83.5
143.9
302.0
1,976.1
1,155.4
288.4
72.1
151.2
309.1
2,016.5
1,183.9
292.1
80.5
156.8
303.2
40 Deposits and currency
41 Currency
42 Checkable deposits
43 Small time and savings accounts
44 Money market fund shares
45 Large time deposits
46 Security RPs
47 Deposits in foreign countries
2,566.4
150.9
350.9
1,542.9
169.5
247.7
78.8
25.7
2,891.7
159.6
378.8
1,693.4
218.5
332.1
88.7
20.6
3,112.5
171.9
419.7
1,831.9
227.3
339.8
103.3
18.5
3,393.4
186.3
512.9
1,948.3
268.9
328.4
124.1
24.5
3,437.0
192.4
487.5
1,983.4
286.4
326.0
143.6
17.8
3,547.6
205.4
510.4
2,017.1
297.1
355.1
141.0
21.6
3,598.3
204.0
491.0
2,070.7
322.1
350.0
142.6
17.8
3,637.6
209.9
506.0
2,105.9
310.4
343.1
144.4
17.8
3,666.3
213.4
490.7
2,117.0
308.6
376.9
144.9
14.7
3,753.4
220.1
522.6
2,137.7
320.9
387.4
150.5
14.4
3,763.4
219.1
486.7
2,154.3
347.0
390.0
152.3
14.0
48 Total of credit market instruments, deposits, and
currency
3,643.0
4,136.5
4,628.5
5,011.4
5,157.6
5,351.6
5,389.5
5,475.0
5,579.3
5,729.6
5,780.0
20.2
85.8
224.7
20.3
85.9
291.5
20.7
84.8
373.5
22.7
86.7
484.2
23.5
87.5
559.4
23.7
87.2
590.5
24.0
87.6
617.8
24.0
87.9
652.8
24.1
87.4
656.3
24.4
87.5
704.3
24.7
87.6
731.9
2,134.0
2,158.2
2,824.5
3,362.0
4,316.0
3,318.5
3,500.2
3,619.7
3,572.5
3,600.9
3,732.4
136.7
2,021.5
240.2
2,584.3
413.5
2,948.5
525.1
3,790.9
460.1
2,858.3
479.2
3,021.0
486.8
3,133.0
478.1
3,094.4
478.3
3,122.6
486.3
3,246.0
615.6
1,542.6
800.0
2,024.5
972.2
2,389.8
1,306.7
3,009.3
1,011.1
2,307.4
1,079.4
2,420.8
1,131.1
2,488.7
1,126.9
2,445.6
1,156.3
2,444.6
1,226.2
2,506.2
2
3
4
5
6
12
13
49
50
51
By public agencies and foreign
Total held
U.S. government securities
Residential mortgages
FHLB advances to savings and loans
Other loans and securities
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
MEMO: Corporate equities not included above
52 Total market value
53
54
Mutual fund shares
Other equities
112.1
2,021.9
55
56
Holdings by financial institutions
Other holdings
612.0
1,522.0
NOTES BY LINE NUMBER.
1. Line 1 of table 1.59.
2. Sum of lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
12. Credit market debt of federally sponsored agencies, and net issues of
federally related mortgage pool securities.
14. Line 1 less line 2 plus line 12 and 13. Also line 21 less line 28 plus line 34.
Also sum of lines 29 and 48 less lines 41 and 47.
19. Includes farm and commercial mortgages.
27. Line 40 less lines 41 and 47.
28. Excludes equity issues and investment company shares. Includes line 20.
30. Foreign deposits at commercial banks plus bank borrowings from foreign
affiliates, less claims on foreign affiliates and deposits by banking in foreign banks.
31. Demand deposits and note balances at commercial banks.
32. Excludes net investment of these reserves in corporate equities.
33. Mainly retained earnings and net miscellaneous liabilities.
34. Line 14 less line 21 plus line 28.
35-39. Lines 15-19 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 39 includes mortgages.
41. Mainly an offset to line 10.
48. Lines 34 plus 40, or line 14 less line 29 plus 41 and 47.
49. Line 2Aine 1 and 13.
50. Line 21/line 14.
51. Sum of lines 11 and 30.
52-54. 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, Stop 95, Division of
Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
A46
Domestic Nonfinancial Statistics • August 1989
2.10 NONFINANCIAL BUSINESS ACTIVITY
Selected Measures1
1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1988
Measure
1986
1987
1989
1988
1
Sept.
Oct.
Nov.
Dec.
Jan.
Feb. "
Mar.'
Apr/
May
1 Industrial production
125.1
129.8
137.2
138.6
139.4
139.9
140.4
140.8
140.5
140.6
141.4
141.4
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
133.3
132.5
124.0
143.6
136.2
113.8
81.1
136.8
127.7
148.8
143.5
118.2
145.9
144.3
133.9
158.2
151.5
125.3
147.4
145.8
134.8
160.4
152.9
126.5
148.1
146.4
136.4
154.0
154.0
127.5
148.4
146.8
136.8
159.9
154.2
128.3
149.4
147.7
138.2
160.4
155.0
128.3
150.1
148.2
138.5
161.1
156.6
128.1
150.0
148.6
138.7
161.6
155.1
127.4
150.4
148.8
138.3
162.6
155.9
127.3
151.1
149.7
139.1
163.8
155.9
128.3
150.8
149.4
138.5
163.9
155.7
128.5
129.1
134.6
142.8
144.4
145.3
145.8
146.3
147.2
146.8
146.7
147.7
147.6
79.7
78.6
81.1
80.5
83.5
83.7
84.0
84.1
84.3
84.7
84.4
85.1
84.4
84.9
84.7
84.6
84.3
84.0
84.0
83.8
84.3
84.2
84.0
84.2
2
3
4
5
6
7
Industry groupings
8 Manufacturing
Capacity utilization (percent) 2
9 Manufacturing
10 Industrial materials industries
3
11 Construction contracts (1982 = 100)
158.0
164.0
161.0
157.0
164.0
158.0
163.0
155.0
148.0
150.0
163.0
159.0
12
13
14
15
16
17
18
19
20
21
Nonagricultural employment, total4
Goods-producing, total
Manufacturing, total
Manufacturing, production-worker....
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable personal income5
Retail sales6
120.7
100.9
96.3
91.1
129.0
219.7
210.7
177.4
218.9
199.3
124.1
101.8
96.8
91.9
133.4
235.1
226.2
183.8
232.7
210.8
128.6
105.0
99.2
94.3
138.5
252.7'
245.2
195.9
251.7
225.l r
128.8r
104.0'
98.7'
93.8'
139.2'
256.0
249.0
198.1
255.6
226.1
129.1'
104.3'
99.1'
94.2'
139.5'
259.8
252.2
202.2
259.6
229.6
129.5'
104.6'
99.3'
94.5'
140.0'
259.1
253.0
201.1
258.7
232.4
129.9'
104.8'
99.5'
94.7'
140.4'
261.3
254.5
200.8
261.0
231.8
130.3'
105.3'
99.8'
94.9'
140.8'
265.8'
257.5
202.7
263.8'
233.2
130.6
105.3
99.8
95.0
141.2
268.6
258.7
203.6
267.3
232.2
130.8
105.4
100.0
95.1
141.5
271.0
261.0
207.2
269.4
232.4
131.1
105.4
99.9
95.0
141.8
272.3
262.7
205.2
267.6
234.7
131.2
105.3
99.8
95.0
142.0
273.1
263.2
205.3
271.4
235.0
22
23
Prices7
Consumer (1982-84 = 100)
Producer finished goods (1982 = 100) . . .
109.6
103.2
113.6
105.4
118.3
108.0
119.8
108.6
120.2
109.4
120.3
109.8
120.5
110.0
121.1
111.1'
121.6
111.7
122.3
112.2
123.1
113.0
123.8
114.2
1. A major revision of the industrial production index and the capacity
utilization rates was released in July 1985. See "A Revision of the Index of
Industrial Production" and accompanying tables that contain revised indexes
(1977= 100) through December 1984 in the FEDERAL RESERVE BULLETIN, vol. 71
(July 1985), pp. 487-501. The revised indexes for January through June 1985 were
shown in the September BULLETIN.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, Department of Commerce, and other sources.
3. Index of dollar value of total construction contracts, including residential,
nonresidential and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
5. Based on data in Survey of Current Business (U.S. Department of Commerce).
6. Based on Bureau of Census data published in Survey of Current Business.
7. Data without seasonal adjustment, as published in Monthly Labor Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5,and 6,
and indexes for series mentioned in notes 3 and 7 may also be found in the Survey
of Current Business.
Figures for industrial production for the last two months are preliminary and
estimated, respectively.
Selected Measures
2.11
A47
LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
T h o u s a n d s o f p e r s o n s ; m o n t h l y data are s e a s o n a l l y a d j u s t e d . E x c e p t i o n s n o t e d .
1988'
Category
1986
1987
1989'
1988
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
HOUSEHOLD SURVEY DATA
1 Noninstitutional population1
182,822
185,010
186,837
187,333
187,471
187,618
187,859
187,979
188,102
188,228
188,377
7. Labor force (including Armed Forces) 1
3
Civilian labor force
120,078
117,834
122,122
119,865
123,893
121,669
124,310
122,091
124,737
122,510
124,779
122,563
125,643
123,428
125,383
123,181
125,469
123,264
125,863
123,659
125,806
123,610
Nonagricultural industries 2
Agriculture
Unemployment
6
Number
7
Rate (percent of civilian labor force)
8 Not in labor force
106,434
3,163
109,232
3,208
111,800
3,169
112,335
3,238
112,709
3,238
112,816
3,193
113,411
3,300
113,630
3,223
113,930
3,206
114,009
3,104
114,102
3,112
8,237
7.0
62,744
7,425
6.2
62,888
6,701
5.5
62,944
6,518
5.3
63,023
6,563
5.4
62,734
6,554
5.3
62,839
6,716
5.4
62,216
6,328
5.1
62,596
6,128
5.0
62,633
6,546
5.3
62,365
6,395
5.2
62,571
99,525
102,310
106,039
106,475
106,824
107,097
107,442
107,711
107,888
108,094
108,195
18,965
777
4,816
5,255
23,683
6,283
23,053
16,693
19,065
721
4,998
5,385
24,381
6,549
24,196
17,015
19,536
733
5,294
5,584
25,362
6,679
25,464
17,387
19,505
717
5,162
5,596
25,315
6,710
25,986
17,484
19,557
712
5,191
5,616
25,386
6,726
26,111
17,525
19,589
711
5,213
5,634
25,453
6,744
26,230
17,523
19,648
711
5,267
5,654
25,553
6,746
26,318
17,545
19,648
711
5,270
5,667
25,631
6,763
26,434
17,587
19,680
714
5,252
5,666
25,685
6,774
26,520
17,597
19,669
720
5,275
5,682
25,698
6,781
26,647
17,622
19,651
719
5,261
5,694
25,717
6,788
26,711
17,654
4
5
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment 3
10
11
12
13
14
15
16
17
Manufacturing
Mining
Contract construction
Transportation and public utilities
Finance
Government
1. Persons 16 years of age and over. Monthly figures, which are based on
sample data, relate to the calendar week that contains the 12th day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the March 1984
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A48
Domestic Nonfinancial Statistics • August 1989
2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1
Seasonally adjusted
1988
1988
1989
1989
1989
1988
Series
Q2
Q3
Ql r
Q4
Output (1977 = 100)
Q2
Q3
Q4
Ql
Q2
Q3
Q4
Qlr
Utilization rate (percent)
Capacity (percent of 1977 output)
1 Total industry
136.0
138.4
139.9
140.6
164.2
165.2
166.3
167.5
82.8
83.8
84.1
84.0
2 Mining
3 Utilities
103.4
111.9
103.9
115.1
104.2
114.3
101.9
115.8
127.0
140.1
126.3
140.4
125.7
140.7
125.1
141.0
81.5
79.9
82.3
81.9
82.9
81.3
81.5
82.1
4 Manufacturing
141.5
144.0
145.8
146.9
170.2
171.5
172.8
174.3
83.2
84.0
84.4
84.3
5 Primary processing
6 Advanced processing
123.9
152.3
125.9
154.9
127.7
156.7
127.8
158.5
142.7
186.7
143.9
188.1
145.2
189.5
146.5
191.0
86.8
81.5
87.5
82.4
87.9
82.7
87.2
83.0
7 Materials
124.0
126.5
128.0
127.6
149.3
150.1
150.8
151.7
83.0
84.3
84.9
84.1
8 Durable goods
9
Metal materials
10 Nondurable goods
11 Textile, paper, and chemical . . .
12
Paper
13
Chemical
134.1
88.1
130.4
132.4
145.9
135.7
137.1
92.7
132.8
135.3
148.9
139.4
139.2
94.8
135.4
138.1
148.6
144.1
138.6
92.3
136.4
139.2
148.5
145.4
166.8
109.1
148.3
148.5
149.2
155.4
167.9
109.5
149.8
150.2
150.7
157.4
169.0
109.8
151.2
151.8
152.3
159.3
170.1
110.2
152.7
153.5
154.0
161.4
80.4
80.8
87.9
89.2
97.8
87.3
81.6
84.8
88.6
90.0
98.8
88.6
82.4
86.3
89.5
91.0
97.6
90.5
81.5
83.8
89.3
90.7
96.4
90.1
14 Energy materials
100.6
102.5
102.0
100.8
119.4
119.0
118.7
118.4
84.2
86.0
86.0
85.1
Previous cycle 2
High
Low
Latest cycle 3
1988
Low
May
High
1988
Sept.
Oct.
1989
Nov.
Dec.
Jan.
Feb/
Mar/
Apr/
May
Capacity utilization rate (percent)
15 Total industry
88.6
72.1
86.9
69.5
82.9
83.7
84.0
84.1
84.3
84.3
83.9
83.8
84.1
83.8
16 Mining
17 Utilities
92.8
95.6
87.8
82.9
95.2
88.5
76.9
78.0
80.8
79.7
82.3
80.4
81.9
81.0
83.3
80.8
83.6
82.0
82.2
80.9
80.6
82.6
81.5
82.9
82.4
82.8
83.5
82.3
18 Manufacturing
87.7
69.9
86.5
68.0
83.3
84.0
84.3
84.4
84.4
84.7
84.3
84.0
84.3
84.0
19 Primary processing
20 Advanced processing..
91.9
86.0
68.3
71.1
89.1
85.1
65.0
69.5
87.0
81.7
87.2
82.4
87.9
82.6
88.1
82.6
87.9
82.8
88.4
83.1
87.0
83.0
86.3
82.8
86.6
83.2
86.3
83.0
21 Materials
92.0
70.5
89.1
68.5
83.0
84.1
84.7
85.1
84.9
84.6
84.0
83.8
84.2
84.2
22 Durable goods
23
Metal materials
91.8
99.2
64.4
67.1
89.8
93.6
60.9
45.7
80.8
82.1
81.9
86.0
82.4
87.3
82.7
86.9
82.1
84.6
82.1
86.1
81.5
83.8
80.8
81.5
81.0
82.7
80.8
82.9
24 Nondurable goods . . . .
91.1
66.7
88.1
70.7
87.7
88.2
89.3
89.4
89.8
90.1
89.0
88.9
89.4
89.3
92.8
98.4
92.5
64.8
70.6
64.4
89.4
97.3
87.9
68.8
79.9
63.5
88.8
98.1
86.9
89.4
97.9
88.0
90.9
97.8
90.2
90.9
96.7
90.5
91.8
98.4
90.7
91.5
98.1
90.7
90.3
95.8
89.8
90.3
95.4
89.7
90.8
95.9
90.2
90.7
">6
?7
28 Energy materials
94.6
86.9
94.0
82.3
83.3
85.3
85.3
86.2
86.5
84.9
84.9
85.6
86.6
87.2
25
Textile, paper, and
chemical
1. These data also appear in the Board's G.3 (402) release. For address, see
inside front cover.
2. Monthly high 1973; monthly low 1975.
3. Monthly highs 1978 through 1980; monthly lows 1982.
Selected Measures
A49
2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1
Monthly data are seasonally adjusted
1977
Groups
1988
1989
1988
portion
AVG.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb/
Mar.
Apr/
May*
Index (1977 = 100)
MAJOR MARKET
1 Total index
100.00
137.2
136.1
136.5
138.0
138.5
138.6
139.4
139.9
140.4
140.8
140.5
140.6
141.4
141.4
57.72
44.77
25.52
19.25
12.94
42.28
145.9
144.3
133.9
158.2
151.5
125.2
145.0
143.5
132.7
157.7
150.4
123.9
145.3
144.0
133.0
158.5
150.0
124.5
146.5
145.0
134.2
159.4
151.6
126.4
147.3
145.8
135.0
160.1
152.3
126.5
147.4
145.8
134.8
160.4
152.9
126.5
148.1
146.4
136.4
159.7
154.0
127.5
148.4
146.8
136.8
159.9
154.2
128.3
149.4
147.7
138.2
160.4
155.0
128.3
150.1
148.2
138.5
161.1
156.6
128.1
150.0
148.6
138.7
161.6
155.1
127.4
150.4
148.8
138.3
162.6
155.9
127.3
151.1
149.7
139.1
163.8
155.9
128.3
150.8
149.4
138.5
163.9
155.7
128.5
6.89
2.98
1.79
1.16
.63
1.19
3.91
1.24
1.19
.96
1.71
125.3
124.9
122.7
93.4
177.0
128.1
125.6
144.1
143.6
136.2
106.3
125.6
127.1
126.9
98.9
178.9
127.4
124.4
142.2
143.0
135.8
105.2
125.3
127.1
125.3
99.0
174.1
129.7
123.9
138.0
137.1
135.9
107.0
125.3
124.4
120.8
93.8
170.8
129.9
125.9
143.3
143.8
136.6
107.4
125.7
124.2
123.1
93.0
179.0
125.9
126.8
146.5
146.1
137.2
106.8
126.3
126.4
124.8
97.7
175.3
128.8
126.2
144.9
143.7
137.1
106.6
129.3
128.9
128.3
101.3
178.4
129.8
129.7
154.4
151.9
138.8
106.7
129.2
129.5
129.5
101.0
182.4
129.5
128.9
150.4
148.9
139.8
107.3
131.9
134.5
138.0
105.1
199.1
129.3
130.0
151.0
150.0
140.5
108.9
131.5
132.5
135.6
99.6
202.3
127.9
130.7
151.0
149.5
141.1
110.1
131.6
131.6
133.1
96.0
201.9
129.4
131.6
153.9
153.0
141.3
110.1
130.1
128.9
128.3
95.0
190.0
129.9
131.1
151.6
152.3
140.7
110.8
131.8
131.2
131.7
98.8
192.8
130.5
132.3
151.8
152.6
143.0
112.2
130.8
128.5
127.3
96.0
19 Nondurable consumer goods
20
Consumer staples
71
Consumer foods and tobacco
22
Nonfood staples
Consumer chemical products
n
Consumer paper products
24
Consumer energy
25
26
Consumer fuel
Residential utilities
27
18.63
15.29
7.80
7.49
2.75
1.88
2.86
1.44
1.42
137.1
144.9
140.9
149.1
180.0
163.4
110.0
95.4
124.8
135.4
143.1
139.2
147.0
177.9
162.4
107.3
94.3
120.6
135.8
143.5
139.3
147.9
179.5
162.8
107.7
93.0
122.6
137.5
145.3
141.1
149.6
181.8
164.0
109.3
94.6
124.4
138.5
146.6
141.3
152.1
183.8
165.3
113.0
95.5
130.9
138.0
145.8
141.1
150.7
185.0
166.3
107.6
92.7
122.8
139.0
147.0
142.4
151.8
186.1
167.1
108.9
95.3
122.7
139.7
147.9
143.7
152.2
185.7
167.8
109.8
94.1
125.8
140.5
148.9
144.5
153.6
186.8
169.0
111.6
96.3
127.1
141.1
149.4
144.8
154.2
187.6
174.2
109.1
96.7
121.7
141.4
149.7
144.3
155.4
187.8
177.0
110.1
95.0
125.4
141.3
149.8
143.5
156.3
188.7
180.0
109.7
95.6
124.1
141.8
150.2
144.1
156.7
186.9
182.6
110.6
97.0
Equipment
28 Business and defense equipment
79
Business equipment
30
Construction, mining, and farm
31
Manufacturing
3?
Power
33
Commercial
Transit
34
35
Defense and space equipment
18.01
14.34
2.08
3.27
1.27
5.22
2.49
3.67
163.3
157.6
71.9
131.3
89.4
245.2
114.9
185.9
162.7
156.9
71.8
128.3
87.4
245.7
115.3
185.5
163.5
158.1
72.4
130.3
88.3
247.1
115.7
184.6
164.6
159.3
73.6
132.4
89.8
248.2
115.9
184.9
165.2
160.2
73.1
134.0
90.9
249.8
115.2
184.9
165.6
160.8
74.3
135.8
92.2
248.7
116.8
184.5
165.1
160.2
74.2
136.2
91.5
245.4
120.3
184.0
165.5
161.2
74.5
136.2
92.1
247.0
122.3
182.2
166.2
162.6
74.6
137.0
91.8
248.9
124.9
180.5
167.1
163.8
74.3
136.3
92.8
252.4
125.7
180.0
167.9
165.0
75.6
137.8
92.7
254.3
125.2
179.3
168.7
166.2
77.2
138.8
92.3
257.2
123.9
178.2
169.7
167.4
76.9
140.2
92.7
258.5
126.3
178.6
169.9
167.8
76.6
140.6
93.0
260.0
124.7
178.0
5.95
6.99
5.67
1.31
138.6
162.5
168.5
136.3
138.8
160.3
165.5
137.8
137.6
160.6
165.9
137.5
138.4
162.8
168.6
137.6
138.1
164.4
170.6
137.7
138.4
165.2
171.8
136.7
140.0
165.9
172.3
138.2
140.7
165.7
172.9
134.3
141.4
166.7
173.8
135.8
142.3
168.8
175.9
138.2
139.5
168.4
175.4
138.3
138.9
170.3
177.3
140.3
138.5
170.8
178.0
139.5
137.4
20.50
4.92
5.94
9.64
4.64
135.4
108.9
171.7
126.7
95.9
134.8
110.0
170.8
125.3
94.8
134.9
110.3
171.6
124.8
93.7
136.8
110.1
174.1
127.5
98.4
136.6
109.8
173.5
127.6
97.3
137.8
138.9
111.4
174.9
130.8
101.1
139.8
113.9
175.0
131.3
101.4
139.0
112.5
174.1
130.9
99.8
139.4
111.7
175.2
131.5
100.8
138.6
112.1
175.2
129.7
98.4
137.8
110.7
175.0
128.6
95.9
138.5
110.1
176.6
129.5
97.0
138.4
109.3
177.1
129.5
97.3
2 Products
Final products
Consumer goods
4
Equipment
6
Intermediate products
7 Materials
Consumer goods
8 Durable consumer goods
9
Automotive products
10
Autos and trucks
11
Autos, consumer
Trucks, consumer
12.
N
Auto parts and allied goods
14 Home goods
15
Appliances, A/C and TV
Appliances and TV
16
17
Carpeting and furniture
Miscellaneous home goods
18
Intermediate products
36 Construction supplies
37 Business supplies
38 General business supplies
Commercial energy products
39
Materials
40 Durable goods materials
41
Durable consumer parts
Equipment parts
47
43
Durable materials n.e.c
44
Basic metal materials
111.0
174.0
129.2
100.3
130.4
132.5
151.7
141.3
149.8
155.9
45 Nondurable goods materials
46 Textile, paper, and chemical
materials
47
Textile materials
48
Pulp and paper materials
49
Chemical materials
Miscellaneous nondurable materials . . .
50
10.09
132.0
130.1
130.1
132.8
133.1
132.6
134.7
135.1
136.3
137.1
135.9
136.2
137.4
137.7
7.53
1.52
1.55
4.46
2.57
134.4
109.9
147.3
138.3
124.9
131.9
107.5
146.4
135.1
125.1
132.1
107.5
145.4
135.8
124.2
135.3
108.5
150.3
139.2
125.6
135.7
110.1
148.3
140.0
125.6
134.9
109.2
148.1
139.0
125.9
137.4
109.5
148.4
143.1
126.6
137.9
110.1
147.2
144.2
127.0
139.1
110.0
150.3
145.1
128.0
139.9
112.1
150.4
145.7
129.1
138.6
110.7
147.5
145.0
128.0
139.1
111.6
147.5
145.5
127.6
140.5
113.0
148.8
147.0
140.9
51 Energy materials
52 Primary energy
Converted fuel materials
53
11.69
7.57
4.12
101.5
106.3
92.8
99.5
104.0
91.2
101.3
105.6
93.5
102.7
106.8
95.3
103.2
106.2
97.7
101.5
106.8
91.8
101.3
106.0
92.6
102.3
108.6
90.7
102.6
107.6
93.3
100.5
105.2
92.0
100.5
104.4
93.3
101.3
104.2
96.0
102.5
105.1
97.6
103.1
A50
Domestic Nonfinancial Statistics • August 1989
2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued
Groups
SIC
code
1977
proportion
1988
1989
1988
avg.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb/
Mar.
Apr
May e
Index (1977 = 100)
MAJOR INDUSTRY
15.79
9.83
5.%
84.21
35.11
49.10
107.5
103.4
114.3
142.7
143.9
141.9
106.0
102.6
111.6
141.8
142.1
141.5
106.8
103.0
113.2
142.1
142.6
141.7
108.1
104.3
114.4
143.6
144.6
142.9
109.0
103.8
117.8
144.0
145.1
143.2
107.2
103.7
113.0
144.4
145.3
143.8
107.2
103.1
113.9
145.3
146.3
144.6
108.1
104.7
113.7
145.8
146.7
145.2
108.9
104.9
115.4
146.3
147.1
145.7
107.2
103.0
114.0
147.2
148.5
146.2
106.8
100.9
116.5
146.8
148.1
145.9
107.6
101.9
116.9
146.7
148.4
145.6
108.2
102.9
116.9
147.7
149.3
146.6
108.7
104.1
116.4
147.6
149.3
146.4
10
11.12
13
14
.50
1.60
7.07
.66
93.2
137.9
92.9
139.9
86.0
127.8
94.6
140.1
82.2
126.9
95.8
137.4
94.0
141.5
93.3
140.2
96.6
137.2
93.2
141.3
99.1
142.2
92.0
139.7
101.6
138.5
91.5
142.8
104.6
149.7
90.8
144.0
111.9
155.1
88.9
149.4
106.9
144.7
88.9
150.8
98.6
134.7
89.5
142.5
98.1
137.7
90.2
143.5
145.5
89.7
143.1
145.8
1 Mining and utilities
2
Mining
3
Utilities
4 Manufacturing
5
Nondurable
6
Durable
7
8
9
10
Mining
Metal
Coal
Oil and gas extraction
Stone and earth minerals
11
12
13
14
15
Nondurable
manufactures
Foods
Tobacco products
Textile null products
Apparel products
Paper and products
20
21
22
23
26
7.96
.62
2.29
2.79
3.15
142.7
105.2
116.2
109.1
150.3
141.0
107.2
114.6
108.6
149.5
141.3
104.5
114.3
109.3
148.6
143.3
100.6
117.1
109.4
152.3
143.3
105.1
116.4
108.9
151.0
143.2
105.0
116.2
109.9
150.9
144.0
105.4
117.0
109.5
151.8
145.7
102.4
117.2
110.1
150.7
145.8
107.0
117.9
108.8
151.7
146.6
105.0
120.2
110.2
153.8
146.3
104.7
119.4
110.2
151.7
145.5
146.3
120.1
109.6
151.8
121.4
16
17
18
19
20
Printing and publishing
Chemicals and products
Petroleum products
Rubber and 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
184.2
151.9
96.0
174.4
59.5
180.7
149.1
95.2
173.4
57.1
182.3
150.5
94.1
174.4
58.9
184.9
153.4
95.0
175.4
59.1
186.7
154.8
96.0
175.3
59.4
188.0
155.3
93.7
175.3
59.9
188.1
156.7
96.3
176.9
61.0
188.5
157.5
95.0
177.5
61.5
188.0
158.1
98.0
177.5
60.2
193.0
159.0
98.0
175.9
62.9
194.6
158.5
96.3
175.0
62.9
197.4
159.1
97.1
174.5
61.1
199.3
159.2
97.8
175.1
61.6
Durable manufactures
21 Lumber and products
22 Furniture and fixtures
23 Clay, glass, and stone products.
24
25
32
2.30
1.27
2.72
137.3
162.1
122.6
139.8
160.5
121.5
136.4
161.2
123.4
136.6
162.9
122.2
133.8
164.9
122.6
133.5
164.9
122.6
137.5
164.5
123.3
139.4
165.4
124.7
143.0
165.4
125.1
139.9
166.3
126.6
132.8
164.8
125.4
133.1
165.8
125.2
132.5
167.8
124.8
33
331.2
34
35
36
5.33
3.49
6.46
9.54
7.15
89.2
78.1
120.9
170.8
180.1
89.2
78.6
119.8
170.3
179.1
87.5
74.2
120.4
171.2
179.5
91.5
80.2
121.7
173.1
181.5
90.8
78.9
122.1
174.1
182.2
93.1
81.4
122.5
174.8
181.8
94.2
83.1
122.6
173.8
183.0
92.7
80.8
124.6
175.4
182.2
90.0
77.6
125.1
177.8
180.9
93.2
82.2
124.5
178.7
180.9
91.1
79.1
124.5
180.8
181.7
88.4
75.9
124.0
182.3
181.4
89.4
77.4
123.6
183.6
182.9
124.0
184.4
182.3
37
371
9.13
5.25
132.1
117.2
133.1
119.6
132.8
119.1
131.9
116.6
131.8
117.5
132.7
118.5
134.8
121.7
135.2
122.9
136.8
125.5
136.7
124.9
136.4
123.4
134.7
120.4
136.7
122.7
135.3
120.1
372-6.9
38
39
3.87
2.66
1.46
152.4
154.3
107.1
151.5
151.3
106.0
151.4
153.0
107.6
152.7
156.4
107.8
151.3
156.8
108.3
151.9
157.8
108.5
152.7
159.9
107.7
151.9
160.4
109.0
152.2
159.1
110.9
152.7
161.0
112.2
154.0
161.3
110.0
154.2
161.0
112.3
155.7
162.4
113.8
156.0
163.5
4.17
132.0
129.7
132.1
134.6
138.8
132.2
132.8
131.6
132.9
131.0
135.3
136.1
136.1
24
25
26
27
28
Primary metals
Iron and steel
Fabricated metal products
Nonelectrical machinery
Electrical machinery
29 Transportation equipment
30
Motor vehicles and parts
31
Aerospace and miscellaneous
transportation equipment
32 Instruments
33 Miscellaneous manufactures
Utilities
34 Electric
153.7
200.0
95.8
89.4
Gross value (billions of 1982 dollars, annual rates)
MAJOR MARKET
35 Products, total.
517.5
36 Final
37
Consumer goods.
38
Equipment
39 Intermediate
405.7 1,401.2 1,397.1 1,394.3 1,398.9 1,404.2 1,404.3 1.423.5 1,426.3 1,442.1 1,447.5 1,449.6 1,442.7 1,457.7 1,444.2
272.7
902.4 898.9 893.6 895.6 900.4 897.2 915.0 918.4 934.4 935.6 934.3 927.8 937.2 926.1
133.0
498.8 498.3 500.7 503.2 503.8 507.1 508.4 507.9 507.7 511.9 515.2 514.9 520.5 518.1
111.9
423.3 423.0 419.6 423.4 424.3 424.5 430.0 429.3 433.2 437.7 429.6 435.1 434.9 435.3
1,824.5 1,820.1 1,813.9 1,822.3 1,828.6 1,828.9 1.853.4 1,855.5 1,875.3 1,885.1 1,879.2 1,877.8 1,892.7 1,879.5
1. These data also appear in the Board's G.12.3 (414) release. For address, see
inside front cover.
A major revision of the industrial production index and the capacity
utilization rates was released in July 1985. See " A Revision of the Index of
Industrial Production" and accompanying tables that contain revised indexes
(1977= 100) through December 1984 in the FEDERAL RESERVE BULLETIN, vol. 71
(July 1985), pp. 487-501. The revised indexes for January through June 1985 were
shown in the September BULLETIN.
Selected Measures
A51
2.14 HOUSING AND CONSTRUCTION
Monthlyfiguresare at seasonally adjusted annual rates except as noted.
1988
Item
1986
1987
1989
1988
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb/
Mar/
Apr.
Private residential real estate activity (thousands of units)
NEW UNITS
1 Permits authorized
2
1-family
3
2-or-more-family
1,750
1,071
679
1,535
1,024
511
1,456
994
462
1,425
976
449
1,466
1,007
459
1,432
980
452
1,526
1,029
497
1,508
1,027
481
1,518
1,058
460
1,486
1,052
434
1,403
989
414
1,230
870
360
1,334
954
380
4 Started
5
1-family
6
2-or-more-family
1,805
1,180
626
1,621
1,146
474
1,488
1,081
407
1,478
1,067
411
1,459
1,076
383
1,463
1,039
424
1,532
1,136
396
1,567
1,138
429
1,577
1,141
436
1,678
1,199
479
1,465
1,029
436
1,409
981
428
1,339
1,027
312
7 Under construction, end of period 1 .
8
1-family
9
2-or-more-family
1,074
583
490
987
591
397
919
570
350
973
605
368
962
601
361
955
596
359
951
597
354
959
603
356
956
603
353
957
602
355
951
594
357
944
587
357
928
581
347
1,756
1,120
636
1,669
1,123
546
1,530
1,085
445
1,528
1,077
451
1,539
1,074
465
1,536
1,092
444
1,516
1,088
428
1,429
1,037
392
1,539
1,108
431
1,537
1,141
396
1,610
1,189
421
1,453
1,045
408
1,555
1,112
443
244
233
218
207
223
224
216
227
225
232
212
207
198
748
357
672
365
675
366
701
365
712
363
691
361
718
353
650
364
669
366
700
369
621
375
547
377
597
377
10 Completed
11
1-family
12
2-or-more-family
13 Mobile homes shipped
Merchant builder activity in
1-family units
14 Number sold
15 Number for sale, end of period
....
Price (thousands of dollars)2
Median
16
Units sold
17
Units sold
92.2
104.7
113.3
118.0
110.0
116.6
112.9
110.4
121.0
113.0
118.0
124.0
116.0
112.2
127.9
139.0
141.3
140.6
142.7
137.3
137.3
147.7
138.6
145.3
148.4
145.9
3,566
3,530
3,594
3,650
3,690
3,650
3,680
3,710
3,920
3,550
3,480
3,400
3,400
80.3
98.3
85.6
106.2
89.2
112.5
90.7
114.7
91.5
115.4
88.5
112.6
88.9
112.3
88.5
112.4
88.7
112.0
89.7
113.0
91.9
117.8
92.0
116.1
92.9
118.0
EXISTING UNITS (1-family)
18 Number sold
Price of units sold
(thousands of dollars)
19 Median
20 Average
Value of new construction 3 (millions of dollars)
CONSTRUCTION
21 Total put in place
386,093
398,848
403,122
404,164
403,172
406,906
407,697
411,517
420,999
417,953
415,744
414,621
414,857
22 Private
23
Residential
24
Nonresidential, total
Buildings
25
Industrial
26
Commercial
27
Other
28
Public utilities and other
314,651
187,147
127,504
323,819
194,772
129,047
325,110
195,280
129,830
324,658
194,215
130,443
326,763
195,393
131,370
327,164
196,945
130,219
330,735
199,971
130,764
332,279
200,601
131,678
335,641
201,738
133,903
336,504
201,441
135,063
333,780
199,727
134,053
339,574
201,135
138,439
335,602
200,694
134,908
13,747
56,762
13,216
43,779
13,707
55,448
15,464
44,428
14,239
55,588
16,761
43,242
13,928
56,687
16,166
43,662
14,006
56,404
16,613
44,347
13,546
55,815
16,600
44,258
15,275
54,525
17,127
43,837
15,957
53,806
16,798
45,117
14,949
55,889
17,177
45,888
15,789
57,549
17,915
43,810
15,028
58,211
17,437
43,377
16,054
60,601
17,617
44,167
16,429
56,341
16,911
45,227
71,437
3,868
22,681
4,646
40,242
75,028
4,327
22,758
5,162
42,781
78,011
3,952
25,721
4,534
43,804
79,506
4,350
27,673
4,861
42,622
76,409
3,984
23,491
4,793
44,141
79,742
4,897
23,841
5,045
45,959
76,963
2,718
25,958
4,339
43,948
79,238
3,521
26,433
3,630
45,654
85,358
4,006
30,955
4,369
46,028
81,449
3,440
27,396
4,079
46,534
81,964
3,433
26,121
4,650
47,760
75,046
3,740
23,516
3,951
43,839
79,255
3,326
25,595
3,394
46,940
29 Public
30
Military
31
Highway
32
Conservation and d e v e l o p m e n t . . .
33
Other
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 previous 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 (1) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing
Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices
of existing units, which are published by the National Association of Realtors. All
back and current figures are available from the originating agency. Permit
authorizations are those reported to the Census Bureau from 16,000 jurisdictions
beginning with 1978.
A52
Domestic Nonfinancial Statistics • August 1989
2.15 CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Change from 3 months earlier
(at annual rate)
Item
1988
1988
1989
May
May
Change from 1 month earlier
1989
Index
level
May
1989
1989
June
Sept.
Dec.
Mar.
Jan/
Feb/
Mar.
Apr.
May
CONSUMER PRICES2
(1982-84=100)
1 All items
3.9
5.4
4.9
4.8
4.1
6.1
.6
.4
.5
.7
.6
123.8
2 Food
3 Energy items
4 All items less food and energy
5
Commodities
6
Services
3.3
1.5
4.3
3.4
4.7
6.8
9.8
4.6
3.6
5.1
6.4
3.7
4.3
3.9
4.5
8.8
2.7
4.3
3.1
4.8
3.0
-.4
4.9
4.2
5.4
8.2
10.2
5.2
4.1
5.9
.7
.8
.5
.5
.5
.4
.6
.4
.2
.5
.8
1.1
.4
.3
.5
.5
5.1
.2
.2
.2
.6
1.6
.5
.4
.5
124.9
97.4
128.3
119.7
133.4
PRODUCER PRICES
(1982=100)
7 Finished goods
8
Consumer foods
9
Consumer energy
1U
Other consumer goods
11
Capital equipment
2.0
.5
.0
3.4
2.0
6.2
7.1
16.9
4.8
3.6
3.0
5.5
-5.2
3.5
2.9
5.7
9.2
-2.7
5.9
6.1
3.0
2.1
1.4
4.4
1.7
10.2
13.5
39.2
6.1
4.6
1.1
1.3
4.9
.5
.6
.9
1.0
2.6
.6
.3
.4
.8
.9
.4
.2
.4
-.6
7.2
-.1
-.1
.9
.8
3.3
.5
.4
114.2
119.1
72.0
123.3
117.9
12 Intermediate materials 3
13
Excluding energy
5.5
6.9
5.8
5.6
7.4
6.9
4.6
7.2
4.5
6.7
9.1
6.2
1.0
.8
.5
.3
.6
.4
.4
.0
.3
.2
112.6
120.8
3.1
-4.2
18.8
9.8
10.2
6.5
21.3
7.8
-6.5
29.1
-27.0
8.5
-7.9
12.3
12.5
16.5
45.9
10.9
2.3
6.9
2.5
-1.4
1.1
-1.8
3.0
1.7
2.0
-2.8
5.2
-1.1
.4
2.2
-.4
115.0
78.7
139.8
Crude materials
Foods
Energy
lb
Other
14
15
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers and reflect a
rental equivalence measure of homeownership after 1982.
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.
Selected Measures
A53
2.16 GROSS NATIONAL PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1988
Account
1986
1987
1989
1988
Ql
Q2
Q3
Q4
Ql'
GROSS NATIONAL PRODUCT
1 Total
2
3
4
5
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
6 Gross private domestic investment
7
Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures
12
13
Change in business inventories
Nonfarm
14 Net exports of goods and services
15
Exports
16
Imports
17 Government purchases of goods and services
18
Federal
19
State and local
By major type of product
20 Final sales, total
21
Goods
22
Durable
23
Nondurable
24
Services
25
Structures
26 Change in business inventories
27
Durable goods
28
Nondurable goods
4,240.3
4,526.7
4,864.3
4,724.5
4,823.8
4,909.0
4,999.7
5,099.0
2,807.5
406.5
943.6
1,457.3
3,012.1
421.9
997.9
1,592.3
3,227.5
451.1
1,046.9
1,729.6
3,128.1
437.8
1,016.2
1,674.1
3,194.6
449.8
1,036.6
1,708.2
3,261.2
452.9
1,060.8
1,747.5
3,326.4
464.0
1,073.9
1,788.5
3,378.1
459.9
1,092.7
1,825.5
665.9
650.4
433.9
138.5
295.4
216.6
712.9
673.7
446.8
139.5
307.3
226.9
766.5
718.1
488.4
142.8
345.6
229.7
763.4
698.1
471.5
140.1
331.3
226.6
758.1
714.4
487.8
142.3
345.5
226.5
772.5
722.8
493.7
143.8
349.9
229.1
772.0
737.2
500.6
145.0
355.6
236.6
788.9
748.5
511.3
148.0
363.3
237.2
15.5
17.4
39.2
40.7
48.4
42.2
65.3
49.4
43.7
33.1
49.7
41.9
34.7
44.6
40.4
25.7
-104.4
378.4
482.8
-123.0
428.0
551.1
-94.6
519.7
614.4
-112.1
487.8
599.9
-90.4
507.1
597.5
-80.0
536.1
616.0
-96.1
548.0
644.0
-79.3
573.8
653.2
871.2
366.2
505.0
924.7
382.0
542.8
964.9
381.0
583.9
945.2
377.7
567.5
961.6
382.2
579.4
955.3
367.7
587.6
997.5
396.3
601.2
1,011.3
397.6
613.7
4,224.7
1,697.9
725.3
972.6
2,118.3
424.0
4,487.5
1,792.5
776.3
1,016.3
2,295.7
438.4
4,815.9
1,938.7
858.3
1,080.4
2,478.0
447.7
4,659.2
1,879.5
819.3
1,060.1
2,405.2
439.9
4,780.1
1,928.0
849.5
1,078.5
2,451.5
444.3
4,859.3
1,960.1
881.6
1,078.5
2,501.6
447.3
4,965.0
1,987.1
882.7
1,104.4
2,553.5
459.1
5,058.6
2,032.9
893.0
1,140.0
2,603.9
462.2
15.5
4.3
11.3
39.2
26.6
12.6
48.4
30.9
17.4
65.3
26.6
38.6
43.7
17.8
25.9
49.7
45.1
4.6
34.7
34.1
0.6
40.4
30.0
10.5
3,721.7
3,847.0
3,996.1
3,956.1
3,985.2
4,009.4
4,033.4
4,077.5
MEMO
29 Total GNP in 1982 dollars
NATIONAL INCOME
30
3,437.1
3,678.7
3,968.2
3,850.8
3,928.8
4,000.7
4,093.4
4,188.9
31 Compensation of employees
32
Wages and salaries
Government and government enterprises
33
34
Other
35
Supplement to wages and salaries
36
Employer contributions for social insurance
Other labor income
37
2,507.1
2,094.0
393.7
1,700.3
413.1
217.0
196.1
2,683.4
2,248.4
420.1
1,828.3
435.0
227.1
207.9
2,904.7
2,436.9
446.1
1,990.7
467.8
249.6
218.3
2,816.4
2,358.7
437.1
1,921.6
457.7
243.1
214.6
2,874.0
2,410.0
442.9
1,967.1
464.0
247.5
216.5
2,933.2
2,462.0
449.1
2,012.9
471.1
251.7
219.5
2,995.3
2,516.8
455.4
2,061.4
478.5
256.0
222.5
3,060.9
2,574.7
465.9
2,108.8
486.2
260.8
225.4
286.7
250.3
36.4
312.9
270.0
43.0
324.5
288.2
36.3
323.9
279.2
44.7
328.8
285.3
43.4
321.6
290.7
30.9
323.8
297.7
26.0
358.1
300.9
57.1
38 Proprietors' income 1
39
Business and professional
40
Farm 1
41 Rental income of persons 2
12.4
18.4
19.3
20.5
19.1
19.7
18.1
14.4
42 Corporate profits 1
43
Profits before tax
44
Inventory valuation adjustment
45
Capital consumption adjustment
298.9
236.4
8.3
54.2
310.4
276.7
-18.0
51.7
328.1
306.4
-23.8
45.6
316.2
286.2
-19.4
49.4
326.5
305.9
-27.4
48.0
330.0
313.9
-29.3
45.4
340.9
320.6
-19.2
39.6
319.4
320.2
-34.1
33.3
46 Net interest
331.9
353.6
391.5
373.9
380.6
396.2
415.4
436.2
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).
A54
Domestic Nonfinancial Statistics • August 1989
2.17 PERSONAL INCOME AND SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1988
Account
1986
1987
1989
1988
Ql
Q2
Q3
Q4
Qlf
PERSONAL INCOME AND SAVING
1 Total personal income
3,531.1
3,780.0
4,062.1
3,951.4
4,022.4
4,094.0
4,180.5
4,315.7
2 Wage and salary disbursements
3
Commodity-producing industries
4
Manufacturing
5
Distributive industries
6
Service industries
7
Government and government enterprises
2,094.0
625.5
473.1
498.9
575.9
393.7
2,248.4
649.8
490.3
531.7
646.8
420.1
2,436.9
695.4
522.5
578.7
716.6
446.1
2,358.7
676.0
509.6
558.2
687.4
437.1
2,410.0
689.1
517.4
572.1
705.9
442.9
2,462.0
701.3
525.9
585.8
725.8
449.1
2,516.8
715.4
537.1
598.6
747.4
455.4
2,574.7
727.7
545.4
611.8
769.3
465.9
196.1
286.7
250.3
36.4
12.4
82.8
499.1
521.1
269.3
207.9
312.9
270.0
43.0
18.4
88.6
527.0
548.8
282.9
218.3
324.5
288.2
36.3
19.3
96.3
575.9
586.0
301.8
214.6
323.9
279.2
44.7
20.5
93.5
554.2
576.3
298.1
216.5
328.8
285.3
43.4
19.1
95.0
563.7
582.8
300.4
219.5
321.6
290.7
30.9
19.7
97.3
581.9
588.6
303.1
222.5
323.8
297.7
26.0
18.1
99.4
603.7
596.4
305.7
225.4
358.1
300.9
57.1
14.4
102.1
634.2
617.1
317.8
8
9
10
11
12
13
14
15
16
17
Other labor income
Proprietors' income 1
(
Business and professional
Farm 1
Rental income of persons 2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits . . .
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
19
172.0
195.1
190.2
193.5
196.7
200.1
210.2
3,780.0
4,062.1
3,951.4
4,022.4
4,094.0
4,180.5
4,315.7
511.4
570.3
590.3
575.8
601.0
586.5
598.0
635.1
20 EQUALS: Disposable personal income
3,019.6
3,209.7
3,471.8
3,375.6
3,421.5
3,507.5
3,582.5
3,680.6
21
LESS: Personal outlays
2,898.0
3,105.5
3,327.5
3,225.7
3,293.6
3,361.8
3,428.7
3,482.7
22 EQUALS: Personal saving
121.7
104.2
144.3
149.9
127.8
145.7
153.8
197.9
15,401.2
10,160.1
10,929.0
4.0
15,772.9
10,336.2
11,012.0
3.2
16,231.1
10,528.8
11,326.0
4.2
16,127.6
10,435.4
11,260.0
4.4
16,213.2
10,492.3
11,237.0
3.7
16,265.3
10,563.1
11,362.0
4.2
16,322.9
10,628.1
11,445.0
4.3
16,461.4
10,637.5
11,592.0
5.4
23
24
25
26
LESS: Personal tax and nontax payments
161.1
3,531.1
MEMO
Per capita (1982 dollars)
Gross national product
Personal consumption expenditures
Disposable personal income
Saving rate (percent)
GROSS SAVING
27 Gross saving
537.2
560.4
644.4
627.0
634.1
665.4
651.9
698.8
28
29
30
31
681.6
121.7
104.1
8.3
665.3
104.2
81.1
-18.0
731.6
144.3
81.0
-23.8
726.3
149.9
78.1
-19.4
711.2
127.8
80.1
-27.4
732.9
145.7
79.5
-29.3
756.7
153.8
86.8
-19.2
783.1
197.9
60.7
-34.1
282.4
173.5
297.5
182.5
315.7
190.6
309.8
188.5
313.3
189.9
316.8
190.9
323.0
193.1
328.2
196.4
-144.4
-205.6
61.2
-104.9
-157.8
52.9
-87.3
-142.4
55.1
-99.2
-155.1
55.8
-77.1
-133.3
56.2
-67.5
-123.5
56.0
-104.8
-157.5
52.6
-84.3
-139.5
55.2
Gross private saving
Personal saving
Undistributed corporate profits 1
Corporate inventory valuation adjustment
Capital consumption
32 Corporate
33 Noncorporate
34
35
36
allowances
Government surplus, or deficit ( - ) , national income and
product accounts
Federal
State and local
37 Gross investment
38 Gross private domestic
39 Net foreign
40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
523.6
552.3
630.3
612.0
629.0
651.4
628.7
667.3
665.9
-142.4
712.9
-160.6
766.5
-136.2
763.4
-151.3
758.1
-129.1
772.5
-121.1
772.0
-143.3
788.9
-121.6
-13.6
-8.1
-14.1
-15.0
-5.1
-14.0
-23.2
-31.5
SOURCE. Survey of Current Business (Department of Commerce).
Summary Statistics
3.10 U.S. INTERNATIONAL TRANSACTIONS
A55
Summary
Millions of dollars; quarterly d a t a are seasonally a d j u s t e d e x c e p t as n o t e d . 1
1988r
Item credits or debits
1 Balance on current account
Not seasonally adjusted
2
3 Merchandise trade balance
4
Merchandise exports
Merchandise imports
5
6
Military transactions, net
7
Investment income, net
Other service transactions, net
8
9 Remittances, pensions, and other transfers
10 U.S. government grants (excluding military)
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )
1986'
1987'
1989
1988r
Qi
Q2
Q3
Q4
Qlp
-32,340
-36,926
-30,339
80,604
-110,943
-1,006
-2,590
4,971
-1,088
-2,288
-28,677
-28,191
-32,019
83,729
-115,748
-1,604
4,489
5,475
-1,090
-3,928
-30,685
-26,131
-27,634
88,4%
-116,130
-1,482
-3,508
5,359
-1,192
-2,228
-133,249
-143,700
-126,548
-145,058
223,367
-368,425
-4,576
21,647
10,517
-4,049
-11,730
-159,500
250,266
-409,766
-2,857
22,283
10,586
-4,063
-10,149
-127,215
319,251
-446,466
-4,606
2,227
17,702
-4,279
-10,377
-32,046
-27,556
-33,446
76,447
-109,893
-964
2,795
2,933
-1,131
-2,233
-33,485
-33,875
-31,411
78,471
-109,882
-1,033
-2,465
4,323
-971
-1,928
-2,024
997
2,999
-1,490
-885
1,961
3,413
1,012
12 Change in U.S. official reserve assets (increase, - )
13 Gold
14 Special drawing rights (SDRs)
15 Reserve position in International Monetary Fund
16 Foreign currencies
312
0
-246
1,501
-942
9,149
0
-509
2,070
7,588
-3,566
0
474
1,025
-5,064
1,503
0
155
446
901
39
0
180
69
-210
-7,380
0
-35
202
-7,547
2,272
0
173
307
1,791
-4,000
0
-188
316
-4,128
17 Change in U.S. private assets abroad (increase, - )
18 Bank-reported claims
19 Nonbank-reported claims
20 U.S. purchase of foreign securities, net
21 U.S. direct investments abroad, net
-97,954
-59,975
-7,396
-4,271
-26,312
-86,363
-42,119
5,201
-5,251
-44,194
-81,543
-54,481
-1,684
-7,846
-17,533
4,528
15,266
-65
-4,539
-6,134
-15,273
-12,602
-6,443
1,333
2,439
-32,467
-26,229
255
-1,592
-4,901
-38,332
-30,916
4,569
-3,047
-8,938
-28,828
-22,601
22 Change in foreign official assets in United States (increase,
+)
23 U.S. Treasury securities
24 Other U.S. government obligations
25 Other U.S. government liabilities
26 Other U.S. liabilities reported by U.S. banks3
27 Other foreign official assets
35,594
34,364
-1,214
2,141
1,187
-884
45,193
43,238
1,564
-2,520
3,918
-1,007
38,882
41,683
1,309
-1,284
-331
-2,495
24,631
27,702
-162
-304
-1,772
-833
5,895
5,853
202
-517
774
-417
-2,234
-3,769
572
-232
1,703
-508
10,589
11,897
697
-232
-1,036
-737
6,914
4,585
716
-377
1,538
452
28 Change in foreign private assets in United States (increase,
+)
<
29 U.S. bank-reported liabilities3
30 U.S. nonbank-reported liabilities
31 Foreign private purchases of U.S. Treasury securities, net
32 Foreign purchases of other U.S. securities, net
33 Foreign direct investments in United States, net
186,011
79,783
-2,641
3,809
70,969
34,091
172,847
89,026
2,450
-7,643
42,120
46,894
180,418
68,832
6,558
20,144
26,448
58,436
2,396
-17,137
1,565
5,928
2,424
9,616
59,438
30,455
-59
5,458
9,699
13,885
48,413
23,291
2,350
3,422
7,454
11,896
70,170
32,223
2,702
5,336
6,871
23,038
42,163
10,398
0
11,308
0
1,878
0
-10,641
0
479
3,843
0
-15,729
-3,714
0
24,047
-4,556
0
-19,434
4,431
0
13,424
4,264
11,308
1,878
-10,641
-3,364
-12,015
28,603
-23,865
9,160
34 Allocation of SDRs
35 Discrepancy
36 Owing to seasonal adjustments
37 Statistical discrepancy in recorded data before seasonal
adjustment
38
39
40
41
MEMO
Changes in official assets
U.S. official reserve assets (increase, - )
Foreign official assets in United States (increase, +)
excluding line 25
Change in Organization of Petroleum Exporting Countries
official assets in United States (part of line 22
above)
Transfers under military grant programs (excluded from
lines 4, 6, and 10 above)
8,745
8,591
14,429
312
9,149
-3,566
1,503
39
-7,380
2,272
-4,000
33,453
47,713
40,166
24,935
6,412
-2,002
10,821
7,291
-9,327
-9,955
-3,109
-1,547
-1,776
-459
672
7,059
96
53
92
41
4
7
40
13
1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and
38-41.
2. Data are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing. Military
exports are excluded from merchandise data and are included in line 6.
3. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
-2,554
-3,673
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).
A56
3.11
International Statistics • August 1989
U.S. FOREIGN TRADE1
Millions of dollars; m o n t h l y d a t a are seasonally a d j u s t e d .
1988
Item
1986
1987
1989
1988
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr."
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments, f.a.s. value
227,159
254,122
321,813
27,816
27,542
29,062
28,747
28,664
30,323
30,572
GENERAL IMPORTS including
merchandise for immediate
consumption plus entries into
bonded warehouses
2
Customs value
365,438
406,241
441,574
36,600
38,200
40,052
37,425
38,483
39,868
38,836
-138,279
-152,119
-119,760
-8,784
-10,658
-10,991
-8,678
-9,819
-9,545
-8,264
Trade balance
3
Customs value
1. 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 adjustment is the exclusion of military sales
(which are combined with other military transactions and reported separately in
the "service account" in table 3.10, line 6). On the import side, additions are made
for gold, ship purchases, imports of electricity from Canada, and other transac-
tions; 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; the
previous month is revised to reflect late documents. Total exports and the trade
balance reflect adjustments for undocumented exports to Canada.
SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade"
(Department of Commerce, Bureau of the Census).
3.12 U.S. RESERVE ASSETS
Millions of dollars, e n d of period
1988
Type
1 Total
2
Gold stock, including Exchange
Stabilization Fund 1
3 Special drawing rights2'3
1985
1986
1989
1987
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May"
43,186
48,511
45,798
48,944
47,802
48,190
49,373
49,854
50,303
54,941
11,090
11,064
11,078
11,059
11,057
11,056
11,061
11,061
11,061
11,060
7,293
8,395
10,283
9,785
9,637
9,388
9,653
9,443
9,379
9,134
4
Reserve position in International
Monetary Fund
11,947
11,730
11,349
10,103
9,745
9,422
9,353
9,052
9,132
8,513
5
Foreign currencies 4
12,856
17,322
13,088
17,997
17,363
18,324
19,306
20,298
20,731
26,234
1. Gold held under earmark at Federal Reserve Banks for foreign and international accounts is not included in the gold stock of the United States; see table
3.13. Gold stock is valued at $42.22 per fine troy ounce.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of member countries.
From July 1974 through December 1980, 16 currencies were used; from January
1981, 5 currencies have been used. The U.S. SDR holdings and reserve position
in the IMF also are valued on this basis beginning July 1974.
3. 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.
3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS 1
Millions of dollars, e n d of period
1988
Assets
1985
1986
Nov.
1 Deposits
Assets held in custody
2 U.S. Treasury securities
3 Earmarked gold
Dec.
Jan.
Feb.
Mar.
Apr.
May
p
480
287
244
251
347
279
325
351
352
428
121,004
14,245
155,835
14,048
195,126
13,919
229,926
13,640
232,547
13,636
228,399
13,635
230,860
13,609
234,075
13,602
235,145
13,576
232,004
13,612
1. Excludes deposits and U.S. Treasury securities held for international and
regional organizations.
2. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies.
1989
1987
3. Earmarked gold and the gold stock are valued at $42.22 per fine troy ounce,
Earmarked gold is gold held for foreign and international accounts and is not
included in the gold stock of the United States.
Summary Statistics
3.14 FOREIGN BRANCHES OF U.S. BANKS
A57
Balance Sheet Data1
Millions of dollars, e n d of period
1988
Asset account
1985
1986
1989
1987
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
All foreign countries
1 Total, all currencies
2 Claims on United States
3 Parent bank
4 Other banks in United States
5 Nonbanks
6 Claims on foreigners
7 Other branches of parent bank
8 Banks
9 Public borrowers
10 Nonbank foreigners
11 Other assets
458,012
456,628
518,618
497,514
516,360
505,790
496,509
501,438
519,522
516,849
119,706
87,201
13,057
19,448
315,676
91,399
102,960
23,478
97,839
114,563
83,492
13,685
17,386
312,955
96,281
105,237
23,706
87,731
138,034
105,845
16,416
15,773
342,520
122,155
108,859
21,832
89,674
157,317
117,494
15,039
24,784
302,855
102,050
102,285
18,234
80,286
171,304
130,834
16,366
24,104
307,043
106,639
100,758
18,191
81,455
169,111
129,856
14,918
24,337
299,504
107,176
96,866
17,138
78,324
167,143
127,403
14,559'
25,181'
291,681'
102,478
93,760
16,751
78,692'
168,558'
128,115
13,506'
26,937'
2%,028'
103,960
95,784
16,504
79,780'
177,929'
134,029'
14,697'
29,203'
303,702'
110,433
97,799'
16,858
78,612
170,046
127,476
13,460
29,110
306,933
114,834
97,075
16,077
78,947
22,630
29,110
38,064
37,342
38,013
37,175
37,685'
36,852
37,891
39,870
12 Total payable in U.S. dollars
336,520
317,487
350,107
341,132
355,652
358,027
345,506
346,971
366,414
359,818
13 Claims on United States
14 Parent bank
15 Other banks in United States
16 Nonbanks
17 Claims on foreigners
18 Other branches of parent bank
19 Banks
20 Public borrowers
21 Nonbank foreigners
116,638
85,971
12,454
18,213
210,129
72,727
71,868
17,260
48,274
110,620
82,082
12,830
15,708
195,063
72,197
66,421
16,708
39,737
132,023
103,251
14,657
14,115
202,428
88,284
63,707
14,730
35,707
151,598
115,109
13,560
22,929
173,467
74,949
54,870
12,787
30,861
165,017
127,692
15,062
22,263
173,826
77,384
53,632
12,415
30,395
163,456
126,929
14,167
22,360
177,672
80,736
54,884
12,131
29,921
160,520
124,4%
12,908'
23,116'
167,271
76,221
49,544
11,596
29,910
161,336
124,288
12,025'
25,023'
168,274
76,563
50,153
11,638
29,920
170,118'
129,458'
13,259'
27,401'
178,118'
82,796
54,028'
11,698
29,596
162,955
123,258
12,540
27,157
179,283
87,777
50,804
11,467
29,235
9,753
11,804
15,656
16,067
16,809
16,899
17,715
17,361
18,178
17,580
22 Other assets
United Kingdom
23 Total, all currencies
148,599
140,917
158,695
155,580
159,556
156,835
156,529
154,879
154,856
153,146
24 Claims on United States
25 Parent bank
26 Other banks in United States
27 Nonbanks
28 Claims on foreigners
29 Other branches of parent bank
30 Banks
31 Public borrowers
32 Nonbank foreigners
33,157
26,970
1,106
5,081
110,217
31,576
39,250
5,644
33,747
24,599
19,085
1,612
3,902
109,508
33,422
39,468
4,990
31,628
32,518
27,350
1,259
3,909
115,700
39,903
36,735
4,752
34,310
36,260
30,569
994
4,697
109,743
33,103
40,236
4,190
32,214
39,242
33,138
1,343
4,761
110,336
33,243
40,875
4,276
31,942
40,089
34,243
1,123
4,723
106,388
35,625
36,765
4,019
29,979
40,954
34,928
1,128
4,898
104,668
35,322
34,907
4,090
30,349
40,547'
34,449
1,268
4,830'
103,806'
33,650
36,159
3,808
30,189'
40,715'
35,315'
1,380
4,020'
103,443'
35,305
35,382'
3,757
28,999
39,394
34,660
1,227
3,507
102,438
32,954
37,079
3,471
28,934
33 Other assets
34 Total payable in U.S. dollars
35 Claims on United States
36 Parent bank
37 Other banks in United States
38 Nonbanks
39 Claims on foreigners
40 Other branches of parent bank
41 Banks
42 Public borrowers
43 Nonbank foreigners
44 Other assets
5,225
6,810
10,477
9,577
9,978
10,358
10,907
10,526
10,698
11,314
108,626
95,028
100,574
99,868
101,341
103,503
102,873
100,863
103,211
98,463
32,092
26,568
1,005
4,519
73,475
26,011
26,139
3,999
17,326
23,193
18,526
1,475
3,192
68,138
26,361
23,251
3,677
14,849
30,439
26,304
1,044
3,091
64,560
28,635
19,188
3,313
13,424
34,184
29,667
606
3,911
60,984
25,703
20,488
2,984
11,809
36,881
32,115
849
3,917
59,405
25,574
19,452
2,898
11,481
38,012
33,252
964
3,7%
60,472
28,474
18,494
2,840
10,664
38,591
33,925
678
3,988
58,798
27,939
16,778
2,869
11,212
37,707
33,106
816
3,785
57,567
26,475
17,246
2,774
11,072
38,265'
34,320'
937
3,008'
59,201'
28,145
17,715'
2,786
10,555
36,772
33,499
872
2,401
56,227
25,389
17,680
2,6%
10,462
3,059
3,697
5,575
4,700
5,055
5,019
5,484
5,589
5,745
5,464
Bahamas and Caymans
45 Total, all currencies
46 Claims on United States
47 Parent bank
48 Other banks in United States
49 Nonbanks
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
142,055
142,592
160,321
159,147
169,034
170,639
162,352
165,862
179,212
172,319
74,864
50,553
11,204
13,107
63,882
19,042
28,192
6,458
10,190
78,048
54,575
11,156
12,317
60,005
17,296
27,476
7,051
8,182
85,318
60,048
14,277
10,993
70,162
21,277
33,751
7,428
7,706
96,287
64,249
12,799
19,239
56,526
18,772
25,636
6,045
6,073
106,240
73,654
14,065
18,521
56,128
18,534
25,549
5,861
6,184
105,320
73,409
13,145
18,766
58,393
17,954
28,268
5,830
6,341
103,016
71,065
12,742'
19,209'
52,503
15,982
24,755
5,422
6,344
103,989
71,100
11,563'
21,326'
54,732
18,454
24,514
5,513
6,251
111,978'
75,261
12,275'
24,442'
59,615'
20,048
27,727'
5,480
6,360
105,274
68,%9
11,564
24,741
60,096
26,261
22,633
5,374
5,828
3,309
4,539
4,841
6,334
6,666
6,926
6,833
7,141
7,619
6,949
136,794
136,813
151,434
151,363
161,238
163,518
154,981
158,011
172,175
166,384
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.
A58
International Statistics • August 1989
3.14—Continued
1988
Liability account
1985
1986
1989
1987
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
All foreign countries
57 Total, all currencies
458,012
456,628
518,618
497,514
516,360
505,790
496,509
501,438
519,522
516,849
58 Negotiable CDs
59 To United States
60
Parent bank
61
Other banks in United States
62
Nonbanks
34,607
156,281
84,657
16,894
54,730
31,629
152,465
83,394
15,646
53,425
30,929
161,390
87,606
20,559
53,225
27,969
163,526
97,102
14,029
52,395
30,734
174,437
106,207
13,584
54,646
28,511
185,555
114,700
14,897
55,958
28.538
172,035
102,501
13.539
55,995
30,013
174,936r
105,667
12,989'
56,280
30,768
185,664
113,612'
14,659'
57,393
30,278
177,561
107,434
14,306
55,821
63 To foreigners
64
Other branches of parent bank
65
Banks
66
Official institutions
67
Nonbank foreigners
68 Other liabilities
245,939
89,529
76,814
19,520
60,076
21,185
253,775
95,146
77,809
17,835
62,985
18,759
304,803
124,601
87,274
19,564
73,364
21,496
283,282
107,532
82,282
18,786
74,682
22,737
287,759
112,310
82,636
17,743
75,070
23,430
270,676
111,262
72,623
15,183
71,608
21,048
273,794
109,116
71,998
18,866
73,814
22,142
274,684'
111,577
70,296'
17,322
75,489
21,805
280,818
116,284
71,290
17,910
75,334
22,272
284,735
117,166
72,205
18,019
77,345
24,275
69 Total payable in U.S. dollars
353,712
336,406
361,438
347,019
363,425
367,075
353,661
356,578
378,435
371,014
70 Negotiable CDs
71 T o United States
72
Parent bank
73
Other banks in United States
74
Nonbanks
31,063
150,905
81,631
16,264
53,010
28,466
144,483
79,305
14,609
50,569
26,768
148,442
81,783
19,155
47,504
23,218
152,240
90,122
12,868
49,250
26,130
161,080
97,898
12,230
50,952
24,045
173,189
107,150
13,628
52,411
23,696
159,650
94,531
12,413
52,706
25,452
161,449
96,714
11,535
53,200
26,287
173,323
105,386
13,355
54,582
25,970
164,955
99,187
12,780
52,988
75 To foreigners
76
Other branches of parent bank
77
Banks
78
Official institutions
79
Nonbank foreigners
80 Other liabilities
163,583
71,078
37,365
14,359
40,781
8,161
156,806
71,181
33,850
12,371
39,404
6,651
177,711
90,469
35,065
12,409
39,768
8,517
160,653
79,945
29,167
10,624
40,917
10,908
164,817
82,810
31,133
9,121
41,753
11,398
160,359
84,021
28,480
8,224
39,634
9,482
160,615
82,145
27,220
10,879
40,371
9,700
159,523
83,253
27,044
8,739
40,487
10,154
168,380
88,434
28,938
9,952
41,056
10,445
169,696
89,219
28,432
9,677
42,368
10,393
154,879
United Kingdom
81 Total, all currencies
148,599
140,917
158,695
155,580
159,556
156,835
156,529
154,856
153,146
82 Negotiable CDs
83 To United States
84
Parent bank
85
Other banks in United States
86
Nonbanks
31,260
29,422
19,330
2,974
7,118
27,781
24,657
14,469
2,649
7,539
26,988
23,470
13,223
1,740
8,507
23,345
31,575
22,800
2,192
6,583
26,013
32,420
23,226
1,768
7,426
24,528
36,784
27,849
2,197
6,738
24,253
34,535
24,130
2,568
7,837
25,942
35,393 r
25,562
1,915'
7,916
26,625
32,609
24,950
1,984
5,675
26,157
29,715
20,455
1,551
7,709
87 To foreigners
88
Other branches of parent bank
89
Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities
78,525
23,389
28,581
9,676
16,879
9,392
79,498
25,036
30,877
6,836
16,749
8,981
98,689
33,078
34,290
11,015
20,306
9,548
89,934
25,743
32,385
10,656
21,150
10,726
90,404
26,268
33,029
9,542
21,565
10,719
86,026
26,812
30,609
7,873
20,732
9,497
87,519
26,815
29,329
10,010
21,365
10,222
83,774'
24,553
28,508'
8,627
22,086
9,770
86,011
25,929
29,094
9,429
21,559
9,611
87,478
25,800
30,714
8,637
22,327
9,796
112,697
99,707
102,550
101,689
102,933
105,514
104,462
103,302
105,942
100,514
94 Negotiable CDs
95 To United States
96
Parent bank
97
Other banks in United States .
98
Nonbanks
29,337
27,756
18,956
2,826
5,974
26,169
22,075
14,021
2,325
5,729
24,926
17,752
12,026
1,512
4,214
20,864
28,063
21,665
1,978
4,420
23,543
27,123
21,003
1,366
4,754
22,063
32,588
26,404
1,912
4,272
21,500
30,032
22,069
2,362
5,601
23,419
30,442
22,998
1,600
5,844
24,302
29,430
23,865
1,719
3,846
24,073
25,493
18,524
1,227
5,742
99 To foreigners
100
Other branches of parent bank
101
Banks
102
Official institutions
103
Nonbank foreigners
104 Other liabilities
51,980
18,493
14,344
7,661
11,482
3,624
48,138
17,951
15,203
4,934
10,050
3,325
55,919
22,334
15,580
7,530
10,475
3,953
47,278
17,384
13,436
6,186
10,272
5,484
46,843
17,443
14,029
4,713
10,658
5,424
46,690
18,561
13,407
4,348
10,374
4,173
48,421
18,936
13,090
5,897
10,498
4,509
44,934
17,139
13,106
4,116
10,573
4,507
47,219
18,483
12,907
5,467
10,362
4,991
46,230
17,755
13,439
4,365
10,671
4,718
93 Total payable in U.S. dollars
Bahamas and Caymans
105 Total, all currencies
142,055
142,592
160,321
159,147
169,034
170,639
162,352
165,862
179,212
172,319
106 Negotiable CDs
107 To United States
108
Parent bank
109
Other banks in United States
110
Nonbanks
610
104,556
45,554
12,778
46,224
847
106,081
49,481
11,715
44,885
885
113,950
53,239
17,224
43,487
1,092
108,858
53,197
10,824
44,837
1,361
116,952
59,883
10,823
46,246
953
122,332
62,894
11,494
47,944
1,118
113,562
56,643
9,890
47,029
1,138
114,729
57,684
9,743
47,302
1,073
124,736
62,689
11,464
50,583
1,025
118,162
59,761
11,345
47,056
35,053
14,075
10,669
1,776
8,533
1,836
34,400
12,631
8,617
2,719
10,433
1,264
43,815
19,185
10,769
1,504
12,357
1,671
46,775
24,805
8,490
972
12,508
2,422
48,113
24,508
10,035
1,060
12,510
2,608
45,161
23,686
8,336
1,074
12,065
2,193
45,602
24,973
7,179
1,337
12,113
2,070
47,534
25,988
7,795
1,379
12,372
2,461
50,882
28,010
8,522
1,234
13,116
2,521
50,604
27,654
8,202
1,808
12,940
2,528
138,322
138,774
152,927
151,600
160,786
162,950
154,663
157,890
172,213
166,484
111 To foreigners
112
Other branches of parent bank
113
Banks
114
Official institutions
115
Nonbank foreigners
116 Other liabilities
117 Total payable in U.S. dollars
Summary Statistics
3.15
A59
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1988
Item
1 Total1
2
3
4
5
6
7
8
9
10
11
12
1986
211,834
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
U.S. securities other than U.S. Treasury securities
By area
Western Europe 1
Latin America and Caribbean
Asia
Other countries 6
1989
1987
259,556
Oct.
Nov.
Dec.
Jan.
Feb.
295,219
300,956
299,749
301,730
Mar.
Apr."
304,220'
307,560
312,917
r
33,516
95,478
38,411
96,109
27,920
75,650
31,838
88,829
34,796
100,814
35,089
103,841
31,507
103,722
36,744
98,457
34,712
98,192
91,368
1,300
15,596
122,432
300
16,157
144,617
516
14,476
146,813
520
14,693
149,025
523
14,972
151,040
527
14,962
155,338
531
15,447
161,887
534
16,145
161,043
538
16,816
88,629
2,004
8,417
105,868
1,503
5,412
124,620
4,961
8,328
116,098
1,402
4,147
125,407
11,014
9,849
139,439
1,094
7,903
128,665
10,066
10,525
142,768
993
7,418
125,099
9,584
10,094
145,579
1,369
7,501
126,057
9,668
9,943
147,273
1,093
7,169
124,801'
9,856
8,875
152,277'
1,143
6,738
125,324
10,156
7,533
156,409
1,119
6,485
128,613
9,994
7,209
158,659
1,065
6,837
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.
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.
3.16 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies1
Millions of dollars, end of period
1988
Item
1 Banks' own liabilities
2 Banks' own claims
3
Deposits
4
Other claims
5 Claims of banks' domestic customers
1985
15,368
16,294
8,437
7,857
580
1. Data on claims exclude foreign currencies held by U.S. monetary authorities.
1986
29,702
26,180
14,129
12,052
2,507
1989
1987
55,438
51,271
18,861
32,410
551
June
Sept.
Dec.
Mar.
54,552
51,017
17,660
33,357
1,004
61,311
59,775
20,769
39,006
335
71,001
66,093
23,831
42,261
364
70,760
67,255
21,810
45,445
376
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 accounts
of the domestic customers.
A60
International Statistics • August 1989
3.17 LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Reported by Banks in the United States1
Millions of dollars, e n d of period
1988
Holder and type of liability
1985
1986
1989
1987
Oct.
Nov.
Dec.
Jan.
Feb/
Mar.
Apr."
1 All foreigners
435,726
540,996
618,874
651,865
678,147
685,084
661,918
677,813
690,053
684,261
2 Banks' own liabilities
3 Demand deposits
4 Time deposits
5 Other.
6 Own foreign offices4
341,070
21,107
117,278
29,305
173,381
406,485
23,789
130,891
42,705
209,100
470,070
22,383
148,374
51,677
247,635
482,647
21,833
142,181
57,046
261,587
503,610
22,052
149,438
53,939
278,180
513,070
21,801
150,980
52,074
288,215
493,248
20,605
145,557
52,165
274,922
507,533
21,731
151,464
50,712
283,625
523,581
22,480
158,804
53,300
288,997
518,256
22,238
157,516
57,880
280,621
94,656
69,133
134,511
90,398
148,804
101,743
169,218
112,267
174,537
116,861
172,015
114,976
168,669
111,141
170,281
110,992
166,472
108,035
166,005
106,191
17,964
7,558
15,417
28,696
16,776
30,285
16,400
40,551
16,662
41,015
16,371
40,668
16,763
40,765
17,061
42,228
16,958
41,479
17,283
42,531
11 Nonmonetary international and regional
organizations8
5,821
5,807
4,464
6,109
4,978
3,224
2,704
3,252
3,739
4,094
12 Banks' own liabilities
13 Demand deposits
14 Time deposits
15 Other
2,621
85
2,067
469
3,958
199
2,065
1,693
2,702
124
1,538
1,040
4,297
143
1,301
2,853
3,722
76
1,584
2,062
2,527
71
1,183
1,272
1,910
67
565
1,278
2,679
74
1,126
1,479
2,931
88
1,360
1,482
3,308
163
1,484
1,661
16 Banks' custody liabilities5
17 U.S. Treasury bills and certificates6
18 Other negotiable and readily transferable
instruments
19 Other
3,200
1,736
1,849
259
1,761
265
1,812
62
1,256
83
698
57
795
69
574
59
808
74
786
77
1,464
0
1,590
0
1,497
0
1,750
0
1,163
10
641
0
711
15
463
52
734
0
693
16
7 Banks' custody liabilities5
8
U.S. Treasury bills and certificates6
9 Other negotiable and readily transferable
instruments
10 Other
9
20 Official institutions
79,985
103,569
120,667
135,610
138,930
135,229
135,201
132,904
128,993
134,520
21 Banks' own liabilities
22 Demand deposits
23 Time deposits
24 Other
20,835
2,077
10,949
7,809
25,427
2,267
10,497
12,663
28,703
1,757
12,843
14,103
31,017
1,780
11,407
17,830
31,107
1,583
12,176
17,348
27,097
1,915
9,784
15,398
32,023
1,627
13,476
16,920
29,392
1,792
12,748
14,852
27,898
1,605
11,104
15,189
32,331
1,717
12,399
18,215
25 Banks' custody liabilities5
26 U.S. Treasury bills and certificates6
27 Other negotiable and readily transferable
instruments
28 Other
59,150
53,252
78,142
75,650
91,965
88,829
104,593
100,814
107,823
103,841
108,132
103,722
103,178
98,457
103,512
98,192
101,095
95,478
102,189
96,109
5,824
75
2,347
145
2,990
146
3,622
158
3,768
214
4,130
280
4,598
124
5,076
244
5,466
152
5,875
205
29 Banks10
275,589
351,745
414,280
424,966
447,246
459,924
437,173
452,485
468,662
455,778
30 Banks' own liabilities
31 Unaffiliated foreign banks
32
Demand deposits
33
Time deposits
34
Other
35 Own foreign offices4
252,723
79,341
10,271
49,510
19,561
173,381
310,166
101,066
10,303
64,232
26,531
209,100
371,665
124,030
10,898
79,717
33,415
247,635
374,398
112,811
10,232
70,887
31,693
261,587
395,437
117,258
10,402
76,415
30,442
278,180
408,615
120,400
9,980
80,279
30,141
288,215
385,240
110,318
9,460
72,537
28,321
274,922
399,766
116,141
9,585
76,921
29,635
283,625
417,241
128,244
11,012
84,888
32,344
288,997
404,602
123,980
10,559
81,455
31,967
280,621
22,866
9,832
41,579
9,984
42,615
9,134
50,569
7,976
51,809
8,087
51,309
7,602
51,933
7,819
52,719
7,491
51,421
7,310
51,177
6,285
6,040
6,994
5,165
26,431
5,392
28,089
5,225
37,367
5,696
38,025
5,666
38,041
5,870
38,243
5,884
39,344
5,254
38,857
5,057
39,835
36 Banks' custody liabilities5
37 U.S. Treasury bills and certificates6
38 Other negotiable and readily transferable
instruments
39 Other
40 Other foreigners
74,331
79,875
79,463
85,179
86,992
86,707
86,840
89,172
88,659
89,868
41 Banks' own liabilities
42 Demand deposits
43 Time deposits
44 Other
64,892
8,673
54,752
1,467
66,934
11,019
54,097
1,818
67,000
9,604
54,277
3,119
72,935
9,678
58,586
4,671
73,343
9,991
59,264
4,088
74,832
9,835
59,734
5,263
74,076
9,452
58,979
5,645
75,695
10,279
60,670
4,746
75,510
9,774
61,451
4,285
78,015
9,799
62,179
6,037
9,439
4,314
12,941
4,506
12,463
3,515
12,244
3,415
13,650
4,849
11,876
3,595
12,764
4,797
13,476
5,250
13,148
5,174
11,853
3,720
4,636
489
6,315
2,120
6,898
2,050
5,803
3,026
6,035
2,766
5,933
2,347
5,584
2,383
5,638
2,589
5,504
2,471
5,658
2,474
9,845
7,496
7,314
6,117
6,128
6,366
6,296
6,064
5,809
5,533
45 Banks' custody liabilities5
46 U.S. Treasury bills and certificates6
47 Other negotiable and readily transferable
instruments
48 Other
49 MEMO: Negotiable time certificates of deposit in
custody for foreigners
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
2. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. 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.
5. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.
6. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
8. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks. Data exclude "holdings of
dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for
International Settlements.
10. Excludes central banks, which are included in "Official institutions."
Bank-Reported Data
A61
3.17—Continued
1988
Area and country
1985
1986
1989
1987
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr."
1 Total
435,726
540,9%
618,874
651,865
678,147
685,084
661,918
677,813'
690,053
684,261
2 Foreign countries
429,905
535,189
614,411
645,755
673,169
681,860
659,213
674,561'
686,314
680,166
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
180,556
1,181
6,729
482
580
22,862
5,762
700
10,875
5,600
735
699
2,407
884
30,534
454
85,334
630
3,326
80
702
234,641
920
9,347
760
377
29,835
7,022
689
12,073
5,014
1,362
801
2,621
1,379
33,766
703
116,852
710
9,798
32
582
227,258
1,271
10,247
2,362
339
23,259
5,898
675
12,512
6,377
1,143
915
6,838
1,579
31,325
876
109,976
655
10,245
100
667
233,958
1,599
11,117
3,089
339
24,564
7,981
683
13,337
5,939
1,342
738
5,976
1,815
31,919
793
111,747
569
9,627
74
711
236,243
1,155
10,043
2,180
284
24,758
6,781
672
14,610
5,311
1,559
903
5,490
1,270
34,224
1,012
116,103
529
8,633
138
589
223,965
1,129
9,006
1,833
375
22,263
5,794
919
11,322
5,248
1,502
870
5,750
1,299
32,564
939
110,894
489
10,917
155
697
228,383'
1,777
10,508'
2,082
560
24,260'
5,263
933
11,073
6,011
1,367
813
5,174'
1,319
31,659'
1,246
113,409
434
9,929
108'
458'
231,925
1,436
9,315
1,639
527
26,844
5,514
760
13,480
5,600
1,547
831
4,902
1,416
29,816
1,023
115,325
440
10,730
102
677
229,445
1,608
10,114
1,615
397
25,655
6,975
927
12,964
5,602
1,783
827
5,794
1,730
29,033
1,093
111,486
465
10,808
90
477
3 Europe
4
Austria
Belgium-Luxembourg
6
Denmark
7
Finland
8
France
9
Germany
10 Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15
Spain
16 Sweden
17
Switzerland
18 Turkey
19 United Kingdom
20
Yugoslavia
21
Other Western Europe 1
22
U.S.S.R
23
Other Eastern Europe
24 Canada
17,427
26,345
30,095
26,697
26,188
21,029
19,267
20,732
25,694
24,466
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
210,318
4,757
73,619
2,922
4,325
72,263
2,054
4,285
7
1,236
1,123
136
13,745
4,970
6,886
1,163
1,537
10,171
5,119
220,372
5,006
74,767
2,344
4,005
81,494
2,210
4,204
12
1,082
1,082
160
14,480
4,975
7,414
1,275
1,582
9,048
5,234
240,109
7,065
76,844
2,577
4,726
95,869
2,727
4,136
12
1,265
1,150
177
15,636
5,354
4,117
1,605
1,788
9,547
5,512
257,330
7,307
83,725
2,752
5,137
105,016
2,653
4,221
9
1,360
1,178
164
15,457
5,907
4,046
1,650
1,887
9,301
5,560
267,147
7,749
86,590
2,621
5,268
110,626
2,917
4,317
10
1,356
1,186
186
15,093
6,705
4,206
1,626
1,895
9,095
5,702
259,423
7,628
82,009
2,381
4,675
108,343
2,969
4,300
10
1,365
1,236
180
15,277
6,083
4,284
1,716
2,011
9,159
5,800
263,539'
6,836
83,455
2,545
4,829
111,213'
2,975
4,453
10
1,402
1,259
170
14,867'
5,641
4,496
1,728
2,142
9,532
5,986
263,752
6,415
85,540
2,578
4,925
109,985
3,063
4,148
10
1,422
1,271
223
14,625
5,666
4,388
1,707
2,243
9,483
6,059
267,433
6,280
85,887
2,367
5,554
113,119
2,931
4,175
10
1,376
1,272
222
14,269
5,765
4,347
1,763
2,255
9,553
6,288
72,280
108,831
121,288
141,940
145,768
147,293
146,559
151,244'
154,906
148,897
1,607
7,786
8,067
712
1,466
1,601
23,077
1,665
1,140
1,358
14,523
9,276
1,476
18,902
9,393
674
1,547
1,892
47,410
1,141
1,866
1,119
12,352
11,058
1,162
21,503
10,180
582
1,404
1,292
54,322
1,637
1,085
1,345
13,988
12,788
1,479
23,380
11,532
778
1,286
2,323
70,478
2,440
1,146
1,363
13,232
12,503
1,401
24,747
12,437
761
995
1,063
73,100
2,681
1,155
1,205
12,871
13,352
1,892
26,057
11,727
695
1,189
1,471
73,989
2,541
1,163
1,236
12,053
13,281
1,566
26,178
10,941
689
1,189
1,216
75,391
2,454
976
1,373
12,262
12,323
1,602
26,001
11,387'
838'
1,198
1,366'
77,407'
2,502
1,014
1,615
12,371'
13,943'
1,590
26,142
10,761
900
1,611
1,156
83,006
2,827
977
1,151
12,029
12,758
1,809
28,265
11,411
1,787
1,168
973
72,301
3,444
981
1,165
12,206
13,389
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries 4
63
Other
4,883
1,363
163
388
163
1,494
1,312
4,021
706
92
270
74
1,519
1,360
3,945
1,151
194
202
. 67
1,014
1,316
3,702
850
66
245
71
993
1,477
3,530
757
64
267
72
952
1,418
3,974
912
68
437
71
1,017
1,470
3,688
771
90
250
74
1,024
1,479
3,791
819
69
212
75
1,121
1,494
3,714
756
60
226
77
1,062
1,534
3,665
721
82
256
73
1,017
1,516
64 Other countries
65
Australia
66
All other
3,347
2,779
568
5,118
4,196
922
4,070
3,327
744
6,049
5,199
849
6,396
5,426
970
6,173
5,303
870
6,312
5,485
827
6,872
6,037
836
6,322
5,490
832
6,260
5,471
789
67 Nonmonetary international and regional
organizations
68
International
69
Latin American regional
70
Other regional 6
5,821
4,806
894
121
5,807
4,620
1,033
154
4,464
2,830
1,272
362
6,109
4,142
1,662
306
4,978
3,491
1,276
211
3,224
2,503
589
133
2,704
1,725
747
232
3,252'
2,106
732
414'
3,739
2,521
995
223
4,094
2,664
961
469
25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
32
Colombia
33
Cuba
34
Ecuador
35
Guatemala
36 Jamaica
37
Mexico
38
Netherlands Antilles
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other
44
45
46
47
48
49
50
51
52
53
54
55
56
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle-East oil-exporting countries 3
Other
1. Includes the Bank for International Settlements and Eastern European
countries that are not listed in line 23.
2. 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. Excludes "holdings of dollars" of the International Monetary Fund.
6. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."
A62
International Statistics • August 1989
3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
Millions of dollars, e n d of period
1988
Area and country
1985
1986
1989
1987
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr."
1 Total
401,608
444,745
459,877
465,538
485,973
490,183
481,408
493,246r
505,002
496,183
2 Foreign countries
400,577
441,724
456,472
462,434
481,192
488,177
478,954
491,341'
502,672
494,300
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
107,823
728
7,498
688
987
11,356
1,816
648
9,043
3,296
672
739
1,492
1,964
3,352
1,543
58,335
1,835
539
345
948
102,348
793
9,397
717
1,010
13,548
2,039
462
7,460
2,619
934
477
1,853
2,254
2,718
1,680
50,823
1,700
619
389
852
105,859
812
8,902
631
912
12,327
2,317
493
6,022
2,666
534
261
1,800
1,852
2,918
1,344
57,924
1,472
1,120
754
798
108,273
721
8,954
599
1,157
12,478
2,307
601
7,100
2,763
478
253
2,054
2,083
2,983
1,265
58,095
1,450
916
1,218
799
117,000
485
8,573
480
1,065
13,242
2,327
433
7,946
2,547
455
374
1,823
1,977
3,895
1,233
65,594
1,390
1,152
1,255
755
107,506
544
8,356
410
911
13,315
2,398
448
5,526
2,514
472
339
2,182
2,619
3,511
1,152
58,037
1,371
1,275
1,286
839
113,887r
646
7,926
790
1,114
14,920
1,696'
517
5,581
2,475
601
331
2,153
2,622
3,799
1,108
62,465r
1,348
1,560
1,389'
845'
116,700
809
7,890
548
909
15,730
3,106
584
5,856
2,806
432
367
2,134
2,613
3,786
1,039
63,292
1,455
1,262
1,298
784
111,593
804
8,102
770
1,214
16,598
4,010
560
4,890
2,725
551
281
2,309
2,164
4,871
1,005
55,731
1,369
1,511
1,346
782
3 Europe
4 Austria
5 Belgium-Luxembourg
6 Denmark
7 Finland
8 France
9 Germany
10 Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
21 Other Western Europe 2
22 U.S.S.R
23 Other Eastern Europe 3
24 Canada
16,482
21,006
25,368
22,482
23,285
18,988
16,731
18,079'
19,042
19,035
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
208,825
12,091
59,342
418
25,716
46,284
6,558
2,821
0
2,439
140
198
30,698
1,041
5,436
1,661
940
11,108
1,936
214,789
11,996
64,587
471
25,897
50,042
6,308
2,740
1
2,286
144
188
29,532
980
4,744
1,329
963
10,843
1,738
201,047
12,077
59,345
596
25,461
48,859
5,459
3,016
0
2,168
175
201
25,645
1,491
2,214
1,065
850
10,803
1,623
211,079
12,023
67,238
511
26,399
50,650
5,319
2,978
0
2,162
167
205
25,386
1,427
2,350
1,012
888
10,736
1,626
213,272
11,804
67,003
483
25,735
54,739
5,401
2,938
1
2,075
198
211
24,636
1,309
2,506
1,012
910
10,732
1,580
210,294
11,880
68,874
475
25,835
50,358
5,156
2,867
1
2,048
185
214
24,445
1,222
2,535
1,011
880
10,748
1,560
210,3%'
11,801
69,479'
535
25,367'
50,542'
5,139
2,805
1
2,026
188
202
24,386
1,150
2,534
952
856
10,956'
1,475
221,761
11,635
72,761
707
25,662
58,322
5,347
2,739
1
2,037
198
211
24,226
1,005
2,455
947
875
10,810
1,825
221,010
11,681
75,500
366
25,990
55,244
5,234
2,655
2
2,029
210
266
24,122
1,007
2,431
947
876
10,680
1,768
66,212
96,126
106,096
124,686
130,282
130,786
135,779
140,182
136,478
134,160
639
1,535
6,797
450
698
1,991
31,249
9,226
2,224
845
4,298
6,260
787
2,681
8,307
321
723
1,634
59,674
7,182
2,217
578
4,122
7,901
968
4,592
8,218
510
580
1,363
68,658
5,148
2,071
496
4,858
8,635
756
3,040
9,500
627
808
1,174
87,276
5,187
1,912
766
5,388
8,253
777
3,845
10,831
568
767
1,231
89,520
5,390
1,900
778
6,657
8,018
762
4,184
10,134
560
730
1,137
90,137
5,219
1,876
850
6,110
9,087
830
3,902
8,739
645
669
1,097
99,032
4,961
1,847
887
5,341
7,829
881
3,960
8,004'
628
735
1,044
104,842
4,891
1,900
931
4,807'
7,559'
992
4,168
7,884
563
649
1,050
100,843
5,178
1,913
986
5,399
6,853
813
3,955
8,314
425
726
1,052
97,379
5,197
1,839
1,023
5,129
8,307
57 Africa
58 Egypt
59 Morocco
60 South Africa
61 Zaire
62 Oil-exporting countries
63 Other
5,407
721
575
1,942
20
630
1,520
4,650
567
598
1,550
28
694
1,213
4,742
521
542
1,507
15
1,003
1,153
5,633
540
476
1,707
17
1,483
1,410
5,629
532
488
1,698
18
1,491
1,402
5,720
509
511
1,681
17
1,523
1,479
5,924
495
524
1,688
16
1,534
1,666
6,072
567
532
1,718
16
1,522
1,717
5,967
543
541
1,695
17
1,482
1,691
6,086
541
532
1,742
19
1,474
1,778
64 Other countries
65 Australia
66 All other
3,390
2,413
978
3,294
1,949
1,345
3,129
2,100
1,029
2,728
1,879
849
2,645
1,586
1,059
2,410
1,517
894
2,720
1,711
1,009
2,726
1,686
1,040
2,724
1,689
1,034
2,417
1,505
912
67 Nonmonetary international and regional
organizations
1,030
3,021
3,404
3,104
4,781
2,006
2,454
1,905'
2,330
1,883
25 Latin America and Caribbean
26 Argentina
27 Bahamas
28 Bermuda
29 Brazil
30 British West Indies
31 Chile
32 Colombia
33 Cuba
34 Ecuador
35 Guatemala
36 Jamaica4
37 Mexico
38 Netherlands Antilles
39 Panama
40 Peru
41 Uruguay
42 Venezuela
43 Other Latin America and Caribbean
44
46
47
48
49
50
51
52
53
54
55
56
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle East oil-exporting countries
Other Asia
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
2. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
3. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
4. Included in "Other Latin America and Caribbean" through March 1978.
5. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
6. Comprises Algeria, Gabon, Libya, and Nigeria.
7. Excludes the Bank for International Settlements, which is included in
"Other Western Europe."
Nonbank-Reported
Data
3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1989
1988
T y p e of claim
1985
1986
1987
Oct.
Nov.
465,538
61,940
237,455
122,071
54,372
67,699
44,072
485,973
64,949
255,005
123,299
55,980
67,318
42,720
Dec.
Jan.
Feb/
481,408
63,670
256,726
119,009
58,605
60,404
42,003
493,246
63,080
262,866
124,561
62,940
61,621
42,740
Mar.
1 Total
430,489
478,650
497,635
2 B a n k s ' o w n claims on foreigners
Foreign public b o r r o w e r s
3
O w n foreign offices
4
5
Unaffiliated foreign b a n k s
6
Deposits
Other
7
8
All o t h e r foreigners
401,608
60,507
174,261
116,654
48,372
68,282
50,185
444,745
64,095
211,533
122,946
57,484
65,462
46,171
459,877
64,605
224,727
127,609
60,687
66,922
42,936
28,881
3,335
33,905
4,413
37,758
3,692
47,196
8,289
53,178
12,084
19,332
24,044
26,696
25,372
24,960
6,214
5,448
7,370
13,535
16,134
28,487
25,706
23,107
19,484
17,161
38,102
43,984
40,587
9 Claims of b a n k s ' domestic c u s t o m e r s 3 . . .
11
537,380
490,183
61,768
256,515
129,542
65,991
63,552
42,359
Apr."
558,180
505,002
62,888
272,668
130,127
66,342
63,785
39,318
496,183
63,111
259,591
131,411
68,446
62,965
42,070
Negotiable and readily transferable
12 Outstanding collections and o t h e r
13 MEMO: C u s t o m e r liability on
Dollar deposits in b a n k s a b r o a d ,
reported by nonbanking business
enterprises in the United States . . . .
42,362
1. D a t a f o r b a n k s ' o w n claims are given o n a monthly basis, but the data for
claims of b a n k s ' o w n d o m e s t i c c u s t o m e r s a r e available o n a quarterly basis only.
Reporting banks include all kinds of depository institutions besides commercial
banks, as well as some b r o k e r s and dealers.
2. U.S. banks: includes a m o u n t s due f r o m own foreign b r a n c h e s and foreign
subsidiaries consolidated in " C o n s o l i d a t e d R e p o r t of C o n d i t i o n " filed with bank
regulatory agencies. Agencies,
branches, and majority-owned
subsidiaries
of
foreign banks: principally a m o u n t s due f r o m head office or parent foreign bank,
and foreign b r a n c h e s , agencies, or wholly o w n e d subsidiaries of head office or
49,297
43,023
45,087 R
47,765
45,308
n.a.
parent foreign b a n k .
3. Assets o w n e d b y c u s t o m e r s of t h e reporting b a n k located in t h e United
States that represent claims o n foreigners held by reporting b a n k s f o r t h e account
of their domestic c u s t o m e r s .
4. Principally negotiable time certificates of deposit and b a n k e r s a c c e p t a n c e s .
5. Includes d e m a n d and time deposits and negotiable a n d nonnegotiable
certificates of deposit d e n o m i n a t e d in U . S . dollars issued by b a n k s a b r o a d . F o r
description of changes in data reported by n o n b a n k s , see July 1979 BULLETIN,
p. 550.
3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1988
Maturity; by b o r r o w e r and area
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
By borrower
Maturity of 1 y e a r or less 2
Foreign public b o r r o w e r s
All o t h e r foreigners
Maturity o v e r 1 y e a n
Foreign public b o r r o w e r s
All o t h e r foreigners
By area
Maturity of 1 y e a r or less
Europe
Canada
Latin A m e r i c a and Caribbean
Asia
Africa
All o t h e r 3
Maturity of over 1 y e a r
Europe
Canada
Latin A m e r i c a and Caribbean
Asia
Africa
All o t h e r 3
1985
1989
1987
June
Sept.
Dec.
Mar.''
227,903
232,295
235,130
228,348
230,356
233,043
231,136
160,824
26,302
134,522
67,078
34,512
32,567
160,555
24,842
135,714
71,740
39,103
32,637
163,997
25,889
138,108
71,133
38,625
32,507
163,819
27,520
136,299
64,530
35,598
28,932
167,861
29,361
138,499
62,495
34,985
27,510
172,447
26,382
146,064
60,597
34,827
25,770
168,167
24,262
143,905
62,%9
37,792
25,177
56,585
6,401
63,328
27,966
3,753
2,791
61,784
5,895
56,271
29,457
2,882
4,267
59,027
5,680
56,535
35,919
2,833
4,003
55,986
6,664
56,166
38,997
2,914
3,092
54,243
6,410
55,532
42,340
3,120
6,216
56,025
6,275
57,866
46,119
3,338
2,824
57,557
5,127
53,356
45,393
3,612
3,121
7,634
1,805
50,674
4,502
1,538
926
6,737
1,925
56,719
4,043
1,539
777
6,6%
2,661
53,817
3,830
1,747
2,381
5,337
2,344
49,762
3,645
2,433
1,008
5,327
2,062
48,260
3,954
2,257
635
4,736
1,929
47,484
3,646
2,301
501
4,446
2,284
49,792
3,685
2,282
480
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well a s s o m e b r o k e r s and dealers.
1986
2. Remaining time to maturity,
3. Includes n o n m o n e t a r y international and regional organizations.
A63
A64
3.21
International Statistics • August 1989
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks 12
Billions of dollars, e n d of period
1987
Area or country
1 Total
1985
1988
1989
1986
Mar.
June
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.''
385.4
385.X
395.4
384.6
387.7
381.4
370.0
350.5
353.7
348.8
352.5
146.0
9.2
12.1
10.5
9.6
3.7
2.7
4.4
63.0
6.8
23.9
156.6
8.3
13.7
11.6
9.0
4.6
2.4
5.8
71.0
5.3
24.9
162.7
9.1
13.3
12.7
8.7
4.4
3.0
5.8
73.7
5.3
26.9
158.1
8.3
12.5
11.2
7.5
7.3
2.4
5.7
72.0
4.7
26.3
155.2
8.2
13.7
10.5
6.6
4.8
2.6
5.4
72.1
4.7
26.5
160.0
10.1
13.8
12.6
7.3
4.1
2.1
5.6
69.1
5.5
29.8
157.2
9.3
11.5
11.8
7.4
3.3
2.1
5.1
71.7
4.9
30.0
151.2
9.2
10.8
10.6
6.1
3.3
1.9
5.6
70.5
5.4
27.9
149.5
9.5
10.0
8.9
5.9
3.0
2.0
5.2
68.1
5.2
31.7
154.5
9.0
10.7
9.9
6.4
2.8
2.0
5.7
66.7
5.5
35.9
150.0
8.6
11.2
10.0
4.9
2.9
2.4
5.2
66.5
4.6
33.6
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
29.9
1.5
2.3
1.6
2.6
2.9
1.2
5.8
1.8
2.0
3.2
5.0
25.7
1.7
1.7
1.4
2.3
2.4
.8
5.8
1.8
1.4
3.0
3.5
25.7
1.9
1.7
1.4
2.1
2.2
.9
6.3
1.7
1.4
3.0
3.2
25.2
1.8
1.5
1.4
2.0
2.1
.8
6.1
1.7
1.5
3.0
3.1
25.9
1.9
1.6
1.4
1.9
2.0
.8
7.4
1.5
1.6
2.9
2.9
26.2
1.9
1.7
1.3
2.0
2.3
.5
8.0
1.6
1.6
2.9
2.4
26.2
1.6
1.4
1.0
2.3
2.0
.4
9.0
1.6
1.9
2.8
2.1
23.7
1.6
1.0
1.2
2.2
2.0
.4
7.2
1.5
1.6
2.8
2.2
22.7
1.6
1.1
1.3
2.1
2.0
.4
6.3
1.3
1.9
2.7
1.8
20.9
1.6
.9
1.2
1.9
1.8
.5
6.2
1.3
1.3
2.4
1.8
20.8
1.4
1.0
1.0
2.2
1.5
.5
6.3
1.0
1.4
2.2
2.4
25 OPEC countries3
26 Ecuador
27 Venezuela
28 Indonesia
29 Middle East countries
30 African countries
21.3
2.1
8.9
3.0
5.3
2.0
19.3
2.2
8.6
2.5
4.3
1.7
20.0
2.1
8.5
2.4
5.4
1.6
18.8
2.1
8.4
2.2
4.4
1.7
19.0
2.1
8.3
2.0
5.0
1.7
17.1
1.9
8.1
1.9
3.6
1.7
17.2
1.9
8.0
1.9
3.6
1.7
16.4
1.8
8.0
1.9
3.1
1.7
17.6
1.8
7.9
1.9
4.3
1.7
16.5
1.7
7.9
1.9
3.2
1.7
16.3
1.7
8.0
1.8
3.2
1.6
104.2
99.1
100.7
100.4
97.7
97.6
94.3
91.3
87.0
85.5
85.8
8.8
25.4
6.9
2.6
23.9
1.8
3.4
9.5
25.2
7.1
2.1
23.8
1.4
3.1
9.5
26.2
7.3
2.0
24.1
1.4
3.0
9.5
25.1
7.2
1.9
25.3
1.3
2.9
9.3
25.1
7.0
1.9
24.8
1.2
2.8
9.4
24.7
6.9
2.0
23.7
1.1
2.7
9.5
23.9
6.6
1.9
22.5
1.1
2.8
9.4
23.7
6.4
2.1
21.1
.9
2.6
9.2
22.4
6.2
2.1
20.6
.8
2.5
8.9
22.5
5.7
2.0
19.0
.8
2.6
8.4
22.8
5.6
1.9
18.3
.7
2.9
2 G-10 countries and Switzerland
3 Belgium-Luxembourg
4 France
5 Germany
6
Italy
Netherlands
7
8
Sweden
9
Switzerland
10 United Kingdom
11 Canada
12 Japan
31 Non-OPEC developing countries
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.5
4.5
1.2
1.6
9.2
2.4
5.7
1.4
1.0
.4
4.9
1.2
1.5
6.6
2.1
5.4
.9
.7
.9
5.5
1.8
1.4
6.2
1.9
5.4
.9
.6
.6
6.6
1.7
1.3
5.6
1.7
5.4
.8
.7
.3
6.0
1.9
1.3
4.9
1.6
5.4
.7
.7
.3
8.2
1.9
1.0
4.9
1.5
5.1
.7
.7
.4
6.1
2.1
1.0
5.6
1.5
5.1
1.0
.7
.3
4.9
2.3
1.0
5.9
1.5
4.9
1.1
.8
.2
3.2
2.0
1.0
6.0
1.6
4.5
1.2
.8
.3
3.6
2.1
1.2
6.1
1.6
4.5
1.1
.9
.5
4.9
2.6
.9
6.1
1.7
4.3
1.0
.8
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 4
1.0
.9
.1
1.9
.7
.9
.1
1.6
.6
.9
.1
1.4
.6
.9
.1
1.3
.6
.8
.1
1.3
.5
.9
.0
1.3
.5
.9
.1
1.2
.6
.9
.1
1.2
.5
.8
.0
1.2
.4
.9
.0
1.1
.5
.9
.0
1.1
52 Eastern Europe
53
U.S.S.R
54 Yugoslavia
55 Other
4.1
.1
2.2
1.8
3.2
.1
1.7
1.4
3.0
.1
1.6
1.3
3.3
.3
1.7
1.3
3.3
.5
1.7
1.2
3.0
.4
1.6
1.0
2.9
.3
1.7
.9
3.1
.4
1.7
1.0
3.0
.4
1.7
1.0
3.7
.7
1.8
1.2
3.5
.7
1.7
1.2
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
62.9
21.2
.7
11.6
2.2
6.0
.1
11.4
9.8
.0
61.3
22.0
.7
12.4
1.8
4.0
.1
11.1
9.2
.0
63.1
23.9
.8
12.2
1.7
4.3
.1
11.4
8.6
.0
60.7
19.9
.6
14.0
1.3
3.9
.1
12.5
8.3
.0
64.3
25.5
.6
12.8
1.2
3.7
.1
12.3
8.1
.0
54.3
17.1
.6
13.3
1.2
3.7
.1
11.2
7.0
.0
50.8
15.1
.8
11.7
1.3
3.3
.1
11.3
7.4
.0
42.4
8.6
1.0
10.0
1.2
3.0
.1
11.7
6.8
.0
.46.5
12.5
.9
11.5
1.2
2.7
.1
10.6
7.0
.0
45.5
11.5
.8
13.1
1.0
2.6
.1
10.2
6.2
.0
50.5
15.5
1.0
14.0
.9
2.3
.1
9.9
6.7
.0
66 Miscellaneous and unallocated7
16.9
19.8
20.1
18.1
22.3
23.2
21.5
22.3
27.0
21.8
25.1
1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.18 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches).
2. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
3. This group comprises the Organization of Petroleum Exporting Countries
shown individually, other members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait,
Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates), and Bahrain and
Oman (not formally members of OPEC).
4. Excludes Liberia.
5. Includes Canal Zone beginning December 1979.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.
Nonbank-Reported
Data
A65
3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States1
Millions of dollars, end of period
1988
1987
Type, and area or country
1984
1985
1986
Dec.
Mar.
June
Sept.
Dec.
1 Total
29,357
27,825
25,587
27,889
29,416
29,564
31,560
33,492r
2 Payable in dollars
3 Payable in foreign currencies
26,389
2,968
24,296
3,529
21,749
3,838
22,504
5,385
23,869
5,547
24,319
5,244
26,391
5,168
28,128'
5,363'
By type
4 Financial liabilities
5 Payable in dollars
6 Payable in foreign currencies
14,509
12,553
1,955
13,600
11,257
2,343
12,133
9,609
2,524
11,882
8,358
3,525
13,635
10,000
3,635
13,219
9,746
3,473
14,076
10,719
3,357
14,740r
n,i3r
3,609'
14,849
7,005
7,843
13,836
1,013
14,225
6,685
7,540
13,039
1,186
13,454
6,450
7,004
12,140
1,314
16,006
7,433
8,573
14,146
1,860
15,780
6,581
9,199
13,869
1,912
16,345
6,899
9,445
14,573
1,771
17,484
6,610
10,874
15,673
1,811
18,752'
6,750'
12,002'
16,998'
1,754
6,728
471
995
489
590
569
3,297
7,700
349
857
376
861
610
4,305
7,917
270
661
368
542
646
5,140
8,078
202
364
583
884
493
5,358
9,411
241
390
585
1,008
777
6,228
8,890
269
353
625
880
706
5,885
10,092
326
354
709
1,014
797
6,722
9,840'
287'
326
726'
897
1,232
6,206'
7 Commercial liabilities
8 Trade payables
9 Advance receipts and other liabilities
10 Payable in dollars
11 Payable in foreign currencies
12
13
14
15
16
17
18
By area or country
Financial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
19
Canada
863
839
399
360
394
403
391
651'
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
5,086
1,926
13
35
2,103
367
137
3,184
1,123
4
29
1,843
15
3
1,944
614
4
32
1,146
22
0
889
293
0
25
503
13
0
1,177
264
0
0
849
15
2
1,188
225
0
0
919
26
0
801
213
0
0
581
2
0
1,246'
191
0
0
645'
1
0
27
28
29
Asia
Japan
Middle East oil-exporting countries'
1,777
1,209
155
1,815
1,198
82
1,805
1,398
8
2,452
2,042
8
2,573
2,112
11
2,662
2,066
11
2,785
2,196
4
2,999'
2,248'
3
30
Africa
14
0
12
0
1
1
4
1
5
3
2
1
3
1
1
0
41
50
67
100
75
74
3
2'
4,001
48
438
622
245
257
1,095
4,074
62
453
607
364
379
976
4,446
101
352
715
424
385
1,341
5,616
134
451
916
428
559
1,657
5,738
156
441
818
463
527
1,798
5,844
150
436
799
514
482
1,848
6,845
208
470
1,204
653
486
2,186
7,730'
171
480
1,690
568
594
2,115
31
32
33
34
35
36
37
38
39
40
Oil-exporting countries
All other 4
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
1,975
1,449
1,405
1,301
1,392
1,167
1,109
1,200
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,871
7
114
124
32
586
636
1,088
12
77
58
44
430
212
924
32
156
61
49
217
216
865
19
168
46
19
189
162
976
15
325
59
14
164
122
1,032
58
272
54
28
233
140
999
20
222
58
30
178
204
1,025'
45
184
91
31
179
176
48
49
50
Asia
Japan
Middle East oil-exporting countries'
5,285
1,256
2,372
6,046
1,799
2,829
5,080
2,042
1,679
6,573
2,580
1,964
5,888
2,510
1,062
6,285
2,661
1,320
6,653
2,769
1,312
6,905
3,095
1,386
51
52
Africa
Oil-exporting countries
588
233
587
238
619
197
574
135
575
139
626
115
465
106
564
201
53
All other 4
1,128
982
980
1,078
1,211
1,391
1,414
1,327
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.
A66
International Statistics • August 1989
3.23 CLAIMS ON UNAFFILIATED FOREIGNERS
United States1
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1987
Type, and area or country
1984
1985
1988
1986
Dec.
Mar.
June
Sept.
Dec/
1 Total
29,901
28,876
36,265
31,086
31,154
37,599
37,345
33,252
2 Payable in dollars
3 Payable in foreign currencies
27,304
2,597
26,574
2,302
33,867
2,399
28,514
2,572
28,997
2,157
35,421
2,178
34,660
2,686
31,057
2,195
By type
4 Financial claims
5
Deposits
6
Payable in dollars
7
Payable in foreign currencies
8
Other financial claims
9
Payable in dollars
10
Payable in foreign currencies
19,254
14,621
14,202
420
4,633
3,190
1,442
18,891
15,526
14,911
615
3,364
2,330
1,035
26,273
19,916
19,331
585
6,357
5,005
1,352
20,440
14,923
13,706
1,217
5,517
4,703
814
20,368
13,056
12,402
653
7,312
6,192
1,120
26,194
19,858
19,009
849
6,336
5,440
895
26,336
19,574
18,358
1,216
6,762
5,863
899
21,450
14,519
13,571
948
6,931
6,207
724
11 Commercial claims
12
Trade receivables
13
Advance payments and other claims
10,646
9,177
1,470
9,986
8,696
1,290
9,992
8,783
1,209
10,647
9,581
1,065
10,786
9,673
1,113
11,405
10,370
1,036
11,010
10,025
985
11,802
10,727
1,075
9,912
735
9,333
652
9,530
462
10,105
541
10,403
383
10,971
434
10,439
571
11,279
523
5,762
15
126
224
66
66
4,864
6,929
10
184
223
161
74
6,007
10,744
41
138
116
151
185
9,855
9,581
7
335
105
351
84
8,472
10,116
15
335
97
336
54
9,062
11,754
16
185
170
337
82
10,642
10,934
49
212
113
364
84
9,543
10,567
11
252
129
350
215
9,240
14
15
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
3,988
3,260
4,808
2,851
2,696
2,960
3,545
2,606
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
8,216
3,306
6
100
4,043
215
125
7,846
2,698
6
78
4,571
180
48
9,291
2,628
6
86
6,078
174
21
6,983
1,998
7
63
4,399
172
19
6,607
2,371
43
86
3,574
154
35
10,951
4,164
126
46
6,111
147
28
11,166
4,109
188
44
6,359
133
27
7,192
1,785
19
47
4,853
151
22
31
32
33
Asia
Japan
Middle East oil-exporting countries 2
961
353
13
731
475
4
1,317
999
7
888
607
10
874
707
7
422
187
6
570
385
6
806
605
6
34
35
Africa
Oil-exporting countries
210
85
103
29
85
28
65
7
53
7
60
10
96
9
106
10
36
All other 4
117
21
28
72
23
47
26
173
3,801
165
440
374
335
271
1,063
3,533
175
426
346
284
284
898
3,725
133
431
444
164
217
999
4,209
179
652
562
135
185
1,097
4,201
194
554
637
151
172
1,084
4,725
159
686
773
173
262
1,121
4,281
172
535
605
146
183
1,197
4,972
176
673
611
266
317
1,228
37
38
39
40
41
42
43
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
1,021
1,023
934
931
1,155
927
933
970
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,052
8
115
214
7
583
206
1,753
13
93
206
6
510
157
1,857
28
193
234
39
412
237
1,944
19
170
226
26
368
296
1,927
14
171
209
24
374
274
2,080
13
174
232
25
412
318
2,104
12
161
233
22
463
266
2,146
31
156
295
20
460
226
52
53
54
Asia
Japan
Middle East oil-exporting countries 2
3,073
1,191
668
2,982
1,016
638
2,755
881
563
2,919
1,160
450
2,857
1,109
408
2,994
1,169
446
2,994
957
411
2,952
936 r
441
55
56
Africa
Oil-exporting countries 3
470
134
437
130
500
139
401
144
419
126
425
136
425
137
434
122
57
All other 4
229
257
222
241
227
254
273
329
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
A67
3.24 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1988
1989
Transactions, and area or country
1987
1989
1988
Jan.Apr.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr. "
11,923
11,789
18,384'
18,495'
15,811
15,442
14,078
14,235
-NR
U.S. corporate securities
STOCKS
249,122
232,849
1 Foreign purchases
2 Foreign sales
181,048
183,039
60,196
59,961
13,232
14,852
11,973
11,861
11,224
12,467
3 Net purchases, or sales (—)
16,272
-1,991
235
-1,620
112
-1,243
134
370
-157
4 Foreign countries
16,321
-1,816
442
-1,507
89
-1,198
167
—81R
507
-151
1,932
905
-70
892
-1,123
631
1,048
1,318
-1,360
12,896
11,365
123
365
-3,353
-281
218
-535
-2,242
-954
1,087
1,249
-2,473
1,365
1,922
188
121
28
435
162
-56
-1,576
1,055
23
1,914
40
-1,712
-1,524
48
101
-128
89
107
17
-217
-41
-116
374
-846
-693
-626
5
-102
-901
-49
-20
-30
-268
-579
576
98
151
138
133
21
6
-771
-64
-53
-1
-273
-424
274
-21
-132
-567
-407
-1
19
-99
38
30
128
-345
74
320
599
-100
-603
-563
29
21
-126
159
59
-64
-1,181
800
-361
575'
265
-544
-487
4
106
71
70
59
4
91
-107
130
636
220
-536
-458
5
-19
182
168
14
-125
-141
288
-66
103
-345
-28
-16
10
-7
-48
-176
-207
-112
23
-45
-33
-30
-137
-6
5
6
7
8
9
10
11
12
13
14
15
16
17
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Japan
Africa
Other countries
18 Nonmonetary international and
regional organizations
BONDS2
105,856
86,362
35,906
7,552
7,650
8,423
6,137
9,610
10,423
9,736
20 Foreign sales
78,312
58,301
21,511
4,674
4,795
4,441
4,593
4,736'
7,025
5,157
21 Net purchases, or sales (—)
27,544
28,062
14,396
2,878
2,856
3,982
1,544
4,874R
3,398
4,579
22 Foreign countries
26,804
28,608
14,368
3,002
2,825
3,978
1,524
4,908R
3,358
4,578
21,989
194
33
269
1,587
19,770
1,296
2,857
-1,314
2,021
1,622
16
-61
17,338
143
1,344
1,514
513
13,088
711
1,930
-174
8,900
7,686
-8
-89
8,727
158
337
130
355
7,008
637
1,400
122
3,385
2,283
14
83
2,341
45
34
545
175
1,339
20
198
-45
485
381
4
-1
1,240
13
-122
171
-13
1,141
5
58
143
1,353
1,210
-1
26
2,560
-130
75
17
273
2,468
178
240
159
840
746
0
2
663
107
15
30
130
313
180
229
-128
552
392
3
24
2,055'
41 r
38
-21
131
1,751
129
651
160
1,893
1,567
2
18
2,794
-16
148
69
4
2,578
213
301
87
-50
-285
5
8
3,215
27
135
51
90
2,365
115
219
3
990
608
4
33
740
-547
28
-124
31
3
20
41
1
19 Foreign purchases
23
24
25
26
27
28
29
30
31
32
33
34
35
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Japan
Africa
Other countries
36 Nonmonetary international and
regional organizations
-34
Foreign securities
1,081
-1,850
-2,623
-126
-222
-1,102
-891
-629
-147
-956
95,458
94,377
74,792
76,642
31,124
33,746
6,070
6,196
7,625
7,846
7,472
8,573
6,856
7,748
8,070
8,698
9,477
9,624
6,721
7,676
40 Bonds, net purchases, or sales ( - )
41
Foreign purchases
42
Foreign sales
-7,946
199,089
207,035
-10,170
216,461
226,631
-1,586
72,773
74,359
-3,407
20,525
23,932
433
20,873
20,440
-1,720
20,510
22,230
-247
14,835
15,083
-484r
18,711'
19,195
-651
23,395
24,046
-204
15,831
16,036
43 Net purchases, or sales (—), of stocks and bonds . . . .
-6,865
-12,020
-4,209
-3,533
211
-2,822
-1,139
-1,112'
44 Foreign countries
-6,757
-12,496
-4,649
-3,582
175
-2,916
-1,115
-12,101
-4,072
828
9,299
89
-800
-10,319
-3,799
1,386
856
-54
-567
-3,999
-1,334
504
52
1
127
-2,881
-273
-120
112
-189
-230
-476
392
23
166
18
52
-1,543
-658
-32
-189
-33
-461
-80
-378
68
-872
6
139
-108
476
440
49
36
94
-23
37 Stocks, net purchases, or sales ( - )
38
39
45
46
47
48
49
50
Foreign purchases
Foreign sales
Europe
Canada
Latin America and Caribbean
Africa
Other countries
51 Nonmonetary international and
regional organizations
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
2. Includes state and local government securities, and securities of U.S.
government agencies and corporations. Also includes issues of new debt securi-
-797
-530
79 r
-34
-9
100
78
-798
-1,160
-991
-1,353
-1,399
-584
161
886
-16
-40
-1,724
158
195
71
19
-73
192
193
ties sold abroad by U.S. corporations organized to finance direct investments
abroad.
A68
International Statistics • August 1989
3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES
Foreign Transactions
Millions of dollars
1988
1989
Country or area
1987
1989
1988
Jan.Apr.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr/
Transactions, net purchases or sales ( - ) during period 1
1 Estimated total2
25,587
48,770
20,427
2,193
8,582
337
2,826
8,922
8,640
38
2 Foreign countries 2
30,889
48,084
20,682
-244
8,247
2,348
2,038
10,046
8,297
301
3 Europe 2
4 Belgium-Luxembourg
5 Germany
6 Netherlands
7 Sweden
8 Switzerland2
9 United Kingdom
10 Other Western Europe
11 Eastern Europe
12 Canada
23,716
653
13,330
-913
210
1,917
3,975
4,563
-19
4,526
14,260
923
-5,348
-356
-323
-1,074
9,667
10,781
-10
3,761
6,425
37
18
2
72
2,916
1,190
2,194
-5
113
-175
-3
277
41
-162
87
-1,019
615
-10
633
1,719
133
-1,015
135
355
-411
1,945
577
-2
-368
304
-90
-406
-114
118
-18
-231
1,059
-15
788
2,191
10
931
268
-115
271
-320
1,145
0
43
3,905
137
-39
135
297
437
1,601
1,337
0
12
2,143
-23
-181
242
-508
1,768
1,207
-363
0
-55
-1,814
-87
-693
-643
398
440
-1,298
74
-5
114
13 Latin America and Caribbean
14 Venezuela
15 Other Latin America and Caribbean
16 Netherlands Antilles
17
18 Japan
19
20 All other
-2,192
150
-1,142
-1,200
4,488
868
-56
407
703
-109
1,120
-308
27,585
21,752
-13
1,786
419
-108
4
523
13,948
7,099
44
-267
-574
1
-331
-244
-107
220
0
-21
582
0
506
77
6,870
4,224
-8
-548
-104
0
140
-244
1,011
-157
-7
358
-95
-37
-154
96
577
115
-1
-676
529
1
252
276
5,964
2,505
15
-379
113
-53
132
34
5,659
1,855
-2
439
-127
-18
-226
117
1,747
2,624
32
350
21 Nonmonetary international and regional organizations
22 International
23 Latin America regional
-5,300
-4,387
3
689
1,142
-31
-256
-124
-39
2,438
2,365
0
335
489
10
-2,011
-2,019
10
788
777
0
-1,125
-1,072
-10
344
424
-8
-263
-252
-21
Memo
24 Foreign countries 2
25 Official institutions
26 Other foreign
30,889
31,064
-181
48,084
26,593
21,489
20,682
12,018
8,664
-244
577
-821
8,247
2,196
6,050
2,348
2,212
136
2,038
2,014
24
10,046
4,299
5,748
8,297
6,549
1,747
301
-844
1,145
-3,142
16
1,943
1
5,823
0
-1,023
0
2,121
0
1,080
0
121
0
3,568
0
2,607
0
-473
0
27
28
Oil-exporting countries
Middle East 3
Africa 4
1. Estimated official and private transactions in marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based on
monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
2. Includes U.S. Treasury notes publicly issued to private foreign residents
denominated in foreign currencies.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
Interest and Exchange Rates
A69
3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per year
Country
Country
Month
effective
6.0
9.25
49.0
12.31
Austria..
Belgium .
Brazil . . .
Canada..
Denmark
Rate on June 30, 1989
Rate on June 30, 1989
Rate on June 30, 1989
Country
8.0
June
June
Mar.
June
June
Percent
1989
1989
1981
1989
1989
France
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
8.75
5.0
13.5
3.25
6.0
Month
effective
Month
effective
June
June
Mar.
May
June
1989
1989
1989
1989
1989
8.0
4.5
Norway
Switzerland
United Kingdom'
Venezuela
June 1983
Apr. 1989
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.
3.27 FOREIGN SHORT-TERM INTEREST RATES
P e r c e n t p e r y e a r , a v e r a g e s of daily
figures
1988
Country, or type
1
2
3
4
5
6
7
8
9
10
1986
1987
1989
1988
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
Eurodollars
United Kingdom
Canada
Germany
Switzerland
6.70
10.87
9.18
4.58
4.19
7.07
9.65
8.38
3.97
3.67
7.86
10.28
9.63
4.28
2.94
9.30
13.07
11.15
5.32
4.77
9.28
13.06
11.34
5.63
5.31
9.61
12.97
11.69
6.36
5.69
10.18
13.00
12.22
6.57
5.75
10.01
13.09
12.58
6.42
6.05
9.66
13.08
12.44
6.96
7.26
9.28
14.17
12.35
6.93
7.09
Netherlands
France
Italy
Belgium
Japan
5.56
7.68
12.60
8.04
4.96
5.24
8.14
11.15
7.01
3.87
4.72
7.80
11.04
6.69
3.96
5.60
8.36
11.96
7.38
4.16
5.99
8.55
11.84
7.59
4.24
6.75
9.11
12.26
8.04
4.21
6.88
9.07
12.88
8.28
4.21
6.70
8.61
12.21
8.17
4.20
7.30
8.81
12.27
8.45
4.25
7.11
8.89
12.35
8.51
4.46
NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate.
A70
International Statistics • August 1989
3.28 FOREIGN EXCHANGE RATES1
Currency units per dollar
1989
Country/currency
1
2
3
4
5
6
Australia/dollar2
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone
7
8
9
10
11
12
13
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee
Ireland/punt2
14
15
16
17
18
19
20
Italy/lira
Japan/yen
Malay sia/ringgit
Netherlands/guilder 2
New Zealand/dollar
Norway/krone
Portugal/escudo
21
22
23
24
25
26
27
28
29
30
Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound2
1986
1987
1988
Jan.
Feb.
Mar.
Apr.
May
June
67.093
15.260
44.662
1.3896
3.4615
8.0954
70.136
12.649
37.357
1.3259
3.7314
6.8477
78.408
12.357
36.783
1.2306
3.7314
6.7411
87.05
12.904
38.441
1.1913
3.7314
7.1143
85.64
13.022
38.792
1.1891
3.7314
7.2094
81.69
13.148
39.136
1.1954
3.7314
7.2912
80.35
13.161
39.148
1.1888
3.7314
7.2803
77.36
13.691
40.723
1.1925
3.7314
7.5820
75.61
13.912
41.414
1.1986
3.7314
7.7087
5.0721
6.9256
2.1704
139.93
7.8037
12.597
134.14
4.4036
6.0121
1.7981
135.47
7.7985
12.943
148.79
4.1933
5.9594
1.7569
142.00
7.8071
13.899
152.49
4.2553
6.2538
1.8356
152.25
7.8047
15.092
145.82
4.3006
6.3004
1.8505
154.72
7.8009
15.240
144.10
4.2994
6.3321
1.8686
157.34
7.7969
15.467
142.84
4.1961
6.3223
1.8697
159.23
7.7828
15.718
142.67
4.3409
6.5815
1.9461
165.41
7.7799
16.102
137.39
4.4302
6.7135
1.9789
170.42
7.7934
16.420
134.92
1491.16
168.35
2.5830
2.4484
52.456
7.3984
149.80
1297.03
144.60
2.5185
2.0263
59.327
6.7408
141.20
1302.39
128.17
2.6189
1.9778
65.558
6.5242
144.26
1345.12
127.36
2.7221
2.0723
62.412
6.6808
150.74
1355.28
127.74
2.7307
2.0895
61.629
6.7254
152.10
1372.50
130.55
2.7535
2.1085
61.547
6.8059
154.05
1371.80
132.04
2.7211
2.1098
61.167
6.7964
154.54
1415.83
137.86
2.6967
2.1938
60.718
7.0337
160.71
1434.40
143.98
2.7086
2.2292
57.376
7.1852
164.92
2.1782
2.2918
884.61
140.04
27.933
7.1272
1.7979
37.837
26.314
146.77
2.1059
2.0385
825.93
123.54
29.471
6.3468
1.4918
31.756
25.774
163.98
2.0132
2.1900
734.51
116.52
31.847
6.1369
1.4642
28.636
25.312
178.13
1.9404
2.3847
685.28
114.78
33.132
6.2725
1.5619
27.821
25.322
177.37
1.9285
2.4570
680.28
115.67
33.115
6.3238
1.5740
27.716
25.386
175.34
1.9407
2.5393
675.68
116.40
33.416
6.3933
1.6110
27.591
25.542
171.34
1.9497
2.5480
672.10
116.146
34.021
6.3689
1.6469
26.998
25.524
170.08
1.9575
2.6710
669.25
121.39
34.145
6.5756
1.7290
25.788
25.757
163.07
1.9572
2.7828
669.43
126.55
33.475
6.6872
1.7089
26.023
25.909
155.30
96.94
92.72
95.12
95.77
96.99
97.24
100.81
103.09
MEMO
3
31 United States/dollar
112.22
1. 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.
2. Value in U.S. cents.
3. 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. 700).
A71
Guide to Tabular Presentation, Statistical
Releases, and Special Tables
GUIDE TO TABULAR
PRESENTATION
Symbols and Abbreviations
c
e
p
r
*
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when
about half of the figures in that column are changed.)
Amounts insignificant in terms of the last decimal place
shown in the table (for example, less than 500,000
when the smallest unit given is millions)
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
. ..
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
General Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed
issues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
STATISTICAL
obligations of the Treasury. "State and local government"
also includes municipalities, special districts, and other political subdivisions.
In some of the tables, details do not add to totals because
of rounding.
RELEASES
List Published Semiannually, with Latest Bulletin Reference
Anticipated schedule of release dates for periodic releases
SPECIAL
Issue
June 1989
Page
A101
TABLES
Published Irregularly, with Latest Bulletin Reference
Assets and liabilities of commercial banks, March 31, 1988
Assets and liabilities of commercial banks, June 30, 1988
Assets and liabilities of commercial banks, September 30, 1988
Assets and liabilities of commercial banks, December 31, 1988
Terms of lending at commercial banks, May 1988
Terms of lending at commercial banks, August 1988
Terms of lending at commercial banks, November 1988
Terms of lending at commercial banks, February 1989
Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1988
Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1988
Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1988
Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1989
Pro forma balance sheet and income statements for priced service operations, June 30, 1987
Pro forma balance sheet and income statements for priced service operations, September 30, 1987 . . . .
Pro forma balance sheet and income statements for priced service operations, March 31, 1988 . . .
Special tables begin
on next page.
June
June
August
August
September
January
April
June
January
May
June
August
November
February
August
1989
1989
1989
1989
1988
1989
1989
1989
1989
1989
1989
1989
1987
1988
1988
A72
A78
A72
A78
A70
All
A72
A84
A78
All
A90
A84
A74
A80
A70
All
Special Tables • August 1989
4.20 DOMESTIC AND FOREIGN OFFICES, Insured Commercial Bank Assets and Liabilities1-2
Consolidated Report of Condition, September 30, 1988
Millions of dollars
Banks with foreign offices 3 ' 4
Item
1 Total assets6
2 Cash and balances due from depository institutions
3
Cash items in process of collection, unposted debits, and currency and coin
4
Cash items in process of collection and unposted debits
5
Currency and coin
6
Balances due from depository institutions in the United States
7
Balances due from banks in foreign countries and foreign central banks
8
Balances due from Federal Reserve Banks
MEMO
9
Noninterest-bearing balances due from commercial banks in the United States
(included in balances due from depository institutions in the United States)
10 Total securities, loans and lease financing receivables, net
11 Total securities, book value
12
U.S. Treasury securities and U.S. government agency and corporation
obligations
13
U.S. Treasury securities
14
U.S. government agency and corporation obligations
15
All holdings of U.S. government-issued or guaranteed certificates of
participation in pools of residential mortgages
16
All other
17
Securities issued by states and political subdivisions in the United States
19
20
22
23
Tax-exempt
Other securities
All holdings of private certificates of participation in pools of
residential mortgages
All other
25 Federal funds sold and securities purchased under agreements to resell
26
Federal funds sold
27
Securities purchased under agreements to resell
28 Total loans and lease financing receivables, gross
29
LESS: Unearned income on loans
30 Total loans and leases (net of unearned income)
31
LESS: Allowance for loan and lease losses
32
LESS: Allocated transfer risk reserves
33
EQUALS: Total loans and leases, net
Total loans, gross, by category
34 Loans secured by real estate
35
Construction and land development
Banks with domestic
offices only
Total
Total
Foreign
Domestic
Over 100
Under 100
3,078,975
1,784,873
432,719
1,406,286
895,016
399,085
341,133
A
t
241,207
81,097
n.a.
n.a.
36,555
100,621
22,934
123,050
1,757
n.a.
n.a.
23,779
97,235
278
118,157
79,339
68,309
11,030
12,776
3,386
22,656
67,484
28,227
20,795
7,432
21,624
6,072
11,561
32,443
A
t
1
n.a.
7,990
13,082
1
T
10,354
1
n.a.
I•
n.a.
2,509,600
1,370,346
n.a.
n.a.
789,996
349,258
526,964
222,892
28,106
194,786
186,857
117,216
324,255
n.a.
n.a.
117,692
61,780
55,912
1,600
1,028
571
116,092
60,752
55,341
121,073
66,301
54,771
85,491
n.a.
n.a.
82,493
n.a.
109,828
2,129
107,699
92,881
n.a.
44,952
10,960
48,210
431
47,779
56,990
32,071
523
48
609
47
562
25,898
1,997
44,428
10,912
47,601
384
47,217
31,093
30,075
22,844
31,928
40,302
731
39,571
25,482
25,093
14,698
n.a.
21,317
968
20,349
10,409
4,068
63,505
1,693
30,378
24,919
0
1,997
23,901
1,693
28,381
1,018
1,670
23,423
389
705
9,704
138,045
110,924
27,121
1,909,340
15,674
1,893,665
48,928
148
1,844,590
77,589
55,907
21,682
1,113,373
7,157
1,106,216
36,205
147
1,069,864
814
n.a.
n.a.
214,310
2,259
212,051
n.a.
n.a.
n.a.
76,776
n.a.
n.a.
899,063
4,899
894,165
n.a.
n.a.
n.a.
39,013
34,028
4,986
579,552
6,153
573,400
9,273
1
564,126
21,442
20,990
453
216,414
2,364
214,050
3,450
0
210,600
655,811
A
t
1
n.a.
318,707
A
t
1
n.a.
21,200
A
t
1
n.a.
235,549
34,724
4,245
114,842
14,914
99,928
6,294
75,445
5,393
4,653
620
120
101,554
7,814
9,239
56,052
2,373
53,678
1,941
26,509
718
n.a.
n.a.
n.a.
n.a.
T
59,911
n.a.
n.a.
n.a.
t
53,799
21,761
2,944
29,094
T
25,585
867
468
24,251
297,507
84,618
1,875
121,384
20,293
101,091
9,510
80,120
28,214
20,894
2,476
4,843
46 Loans to finance agricultural production and other loans to farmers
47 Commercial and industrial loans
48
To U.S. addressees (domicile)
49
T o non-U.S. addressees (domicile)
50 Acceptances of other banks
51
U.S. banks
31,028
592,720
n.a.
n.a.
4,101
n.a.
n.a.
5,556
414,084
329,663
84,421
911
271
640
264
102,631
20,902
81,729
370
6
364
5,292
311,453
308,762
2,692
540
265
275
6,909
133,912
133,605
306
1,718
n.a.
n.a.
18,563
44,725
n.a.
n.a.
1,472
n.a.
n.a.
53 Loans to individuals for household, family, and other personal expenditures (includes
purchased paper)
54
Credit cards and related plans
55
Other (includes single payment and installment)
364,004
107,593
256,411
154,857
43,926
110,930
11,439
n.a.
n.a.
143,417
n.a.
n.a.
164,766
60,821
103,945
44,382
2,846
41,536
48,148
1,195
46,953
120,431
n.a.
n.a.
n.a.
n.a.
29,857
611
29,245
107,958
35,374
72,584
n.a.
n.a.
575
145
430
48,226
35,058
15,168
n.a.
n.a.
29,282
467
28,815
59,732
2,316
57,416
14,128
43,288
16,112
493
15,620
10,260
264
9,996
1,666
8,329
2,179
91
2,088
2,213
n.a.
n.a.
n.a.
n.a.
33,186
41,951
45,160
12,807
2,333
33,328
n.a.
5,109
87,552
27,644
40,930
23,933
6,292
1,546
32,909
n.a.
3,380
64,330
4,018
19,128
A
t
23,626
21,802
n.a.
n.a.
n.a.
n.a.
37,685
n.a.
n.a.
4,934
741
14,269
3,815
731
397
n.a.
1,537
16,045
609
279
6,959
2,699
56
22
n.a.
192
7,178
37
1-4 family residential properties
38
Revolving, open-end loans, extended under lines of credit
39
All other loans
40
Multifamily (5 or more) residential properties
41
Nonfarm nonresidential properties
42 Loans to depository institutions
43
To commercial banks in the United States
44
To other depository institutions in the United States
45
To banks in foreign countries
56 Obligations (other than securities) of states and political subdivisions in the U.S.
(includes nonrated industrial development obligations)
58
Tax-exempt
59 All other loans
60
Loans to foreign governments and official institutions
61
Other loans
62
Loans for purchasing and carrying securities
63
All other loans
64
65
66
67
68
69
70
71
72
Lease financing receivables
Assets held in trading accounts
Premises and fixed assets (including capitalized leases)
Other real estate owned
Investments in unconsolidated subsidiaries and associated companies
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
Intangible assets
Other assets
1
1
1
1
n.a.
It
Commercial Banks
A73
4.20—Continued
Banks with foreign offices 3 ' 4
Banks with dornestic
offices only
Total
Total
Foreign
Domestic
Over 100
Under 100
73 Total liabilities, limited-life preferred stock, and equity capital
,078,975
1,784,873
n.a.
n.a.
895,016
399,085
74 Total liabilities7
75
Limited-life preferred stock
.886.560
92
1,691,479
0
430,451
n.a.
1,315,159
n.a.
831,351
80
363,730
13
76 Total deposits
77
Individuals, partnerships, and corporations
78
U.S. government
79
States and political subdivisions in the United States
80
Commercial banks in the United States
81
Other depository institutions in the United States
82
Banks in foreign countries
83
Foreign governments and official institutions
84
Certified and official checks
85
Allother 8
,362,061
4
1,287,042
4
328,362
189,138
n.a.
n.a.
I
n.a.
1
18,995
1
25,718
11,074
958,680
863,561
2,247
40,357
28,494
4,271
7,891
1,348
10,511
722,119
661,170
1,474
41,608
9,210
2,478
335
289
5,554
352,900
322,881
592
23,991
1,922
1,107
n.a.
n.a.
2,367
40
316,893
265,722
1,376
8,621
19,508
3,442
6,934
780
10,511
205,0%
180,443
1,113
9,942
6,429
1,386
215
14
5,554
94,218
83,849
454
6,362
862
310
n.a.
n.a.
2,367
15
244,487
195,511
1,352
6,451
19,508
3,442
6,934
780
10,511
130,7%
111,074
1,091
5,044
6,425
1,378
215
14
5,554
641,787
597,839
871
31,737
8,987
432
8,555
829
957
232
724
568
517,022
480,727
362
31,666
2,780
79
2,701
1,092
120
118
1
276
50,875
44,659
441
2,233
860
304
n.a.
n.a.
2,367
12
258,682
239,033
139
17,629
1,060
n.a.
n.a.
797
n.a.
n.a.
n.a.
n.a.
25
86 Total transaction accounts
87
Individuals, partnerships, and corporations
88
U.S. government
89
States and political subdivisions in the United States
90
Commercial banks in the United States
91
Other depository institutions in the United States
92
Banks in foreign countries
93
Foreign governments and official institutions
94
Certified and official checks
95
All other
96 Demand deposits (included in total transaction accounts)
97
Individuals, partnerships, and corporations
98
U.S. government
99
States and political subdivisions in the United States
100
Commercial banks in the United States
101
Other depository institutions in the United States
102
Banks in foreign countries
103
Foreign governments and official institutions
104
Certified and official checks
105
All other
106 Total nontransaction accounts
Individuals, partnerships, and corporations
107
108
U.S. government
109
States and political subdivisions in the United States
110
Commercial banks in the United States
111
U.S. branches and agencies of foreign banks
112
Other commercial banks in the United States
113
Other depository institutions in the United States
114
Banks in foreign countries
115
Foreign branches of other U.S. banks
116
Other banks in foreign countries
Foreign governments and official institutions
117
118
Allother
119
120
121
122
123
124
125
126
127
128
Federal funds purchased and securities sold under agreements to repurchase..
Federal funds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and I B F s . . .
All other liabilities
Total equity capital 9
129
130
131
132
133
134
Holdings of commercial paper included in total loans, gross
Total individual retirement accounts (IRA) and Keogh plan accounts
Total brokered deposits
Total brokered retail deposits
Issued in denominations of $100,000 or less
Issued in denominations greater than $100,000 and participated out by the
broker in shares of $100,000 or less
Savings deposits
Money market deposit accounts (MMDAs)
Other savings deposits (excluding MMDAs)
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All N O W accounts (including Super NOW)
Total time and savings deposits
k
n.a.
n.a.
248,330
150,837
97,493
n a.
120,439
33,449
17,098
n a.
73,973
19'.,323
n a.
1
n.a.
n. a.
\
i
n.a.
n. a.
188,453
122,321
66,132
n.a.
85,690
33,030
14,706
n. a.
56,993
93,395
831
n.a.
n.a.
n.a.
37,903
6,548
n.a.
n. a.
n. a.
n.a.
187,621
n.a.
n.a.
25,565
47,787
26,481
n.a.
16,447
n.a.
n.a.
56,138
27,012
29,126
4,998
32,895
397
2,087
n.a.
12,718
63,585
3,739
1,504
2,236
648
1,854
22
305
n.a.
4,262
35,343
2,391
1,005
1,386
39,740
33,878
7,534
1,027
1,057
36,545
13,226
7,954
4,282
n.a.
16,450
1,340
1,165
866
n.a.
Quarterly averages
142 Total loans
143 Obligations (other than securities) of states and political subdivisions
in the United States
144 Transaction accounts in domestic offices (NOW accounts, ATS accounts, and
telephone and preauthorized transfer accounts)
Nontransaction accounts in domestic offices
145
Money market deposit accounts (MMDAs)
146
Other savings deposits
147
Time certificates of deposit of $100,000 or more
148
All other time deposits
149 Number of banks
Footnotes appear at the end of table 4.22
1
1
24,370
563
114 29?
J
MEMO
135
136
137
138
139
140
141
I
n.a.
r
13,206
250
n a.
6,507
3,672
299
176,864
80,656
172,612
182,550
29,105
70,491
714,193
123,567
73,916
208
108,000
3,907
72,012
591,323
48,457
33,618
133,071
41,983
1,553
41,835
302,025
866,171
561,303
209,942
29,890
15,948
n.a.
73,799
74,020
43,247
179,351
80,676
175,058
194,099
125,485
74,576
103,825
207,993
49,115
33,534
41,028
133,0%
2,384
10,572
n.a.
All
Special Tables • August 1989
4.21
DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or more or with foreign offices1-2-6
Consolidated Report of Condition, September 30, 1988
Millions of dollars
Members
Item
Nonmembers
Total
Total
National
State
2,301,302
1,841,030
1,459,564
381,466
460,272
185,641
89,104
18,462
34,400
9,458
34,217
153,252
81,045
15,382
22,879
5,735
28,212
120,964
65,134
12,721
18,580
4,526
20,004
32,288
15,911
2,661
4,299
1,210
8,208
32,388
8,059
3,081
11,521
3,723
6,005
1,964,996
1,556,955
1,249,894
307,061
408,041
381,642
127,053
110,112
284,515
93,739
84,286
221,057
73,716
67,741
63,458
20,022
16,544
97,127
33,314
25,827
67,272
42,840
87,903
1,115
86,788
55,168
3,363
51,805
1,407
56,303
27,983
69,271
763
68,508
36,055
2,713
33,342
1,165
44,538
23,204
50,539
571
49,968
28,495
1,571
26,924
566
11,765
4,779
18,732
192
18,539
7,560
1,142
6,419
600
10,969
14,857
18,632
352
18,280
19,113
650
18,462
241
115,789
34,029
4,986
1,478,616
11,051
1,467,565
97,265
21,617
3,504
1,183,680
8,506
1,175,174
71,324
19,006
2,969
964,182
6,669
957,513
25,941
2,611
534
219,498
1,837
217,662
18,524
12,412
1,482
294,936
2,546
292,390
533,056
119,342
6,120
236,226
35,207
201,019
15,804
155,565
25,547
3,097
4,963
12,201
406,085
97,217
4,160
173,979
27,465
146,513
12,464
118,265
22,683
2,828
4,849
9,608
346,500
81,148
3,645
148,908
23,519
125,389
10,962
101,838
18,469
2,508
2,566
8,568
59,585
16,070
515
25,071
3,947
21,124
1,503
16,427
4,215
320
2,282
1,039
126,971
22,124
1,960
62,247
7,742
54,506
3,340
37,300
2,864
269
115
2,593
445,365
442,367
2,998
365,726
362,993
2,733.
287,432
285,199
2,233
78,294
77,794
500
79,639
79,373
265
2,258
765
428
1,374
478
338
1,184
440
261
190
39
77
884
286
90
45 Loans to individuals for household, family, and other personal expenditures
(includes purchased paper)
46 Loans to foreign governments and official institutions
47 Obligations (other than securities) of states and political subdivisions in the United States
48
49
50 Other loans
51
Loans for purchasing and carrying securities
52
308,183
2,580
45,394
959
44,435
67,411
15,794
51,618
243,798
2,484
38,218
688
37,530
60,864
14,528
46,336
203,121
1,803
28,487
562
27,925
43,010
9,403
33,608
40,677
680
9,731
126
9,605
17,854
5,125
12,728
64,385
97
7,176
271
6,905
6,547
1,266
5,281
53
54
55
56
28,560
26,207
37,685
124,459
25,163
25,116
34,311
105,707
20,533
17,646
22,819
71,061
4,631
7,470
11,492
34,647
3,3%
1,091
3,375
18,752
1 Total assets6
2 Cash and balances due from depository institutions
3
Cash items in process of collection and unposted debits
4
Currency and coin
Balances due from depository institutions in the United States
6
Balances due from banks in foreign countries and foreign central banks
7
Balances due from Federal Reserve Banks
a
8 Total securities, loans and lease financing receivables, (net of unearned income)
9 Total securities, book value
10
U . S . Treasury securities
11
U.S. government agency and corporation obligations
12
All holdings of U.S. government-issued or guaranteed certificates of
participation in pools of residential mortgages
n
Mother
14
Securities issued by states and political subdivisions in the United States
IS
Taxable
16
Tax-exempt
17
Other domestic securities
18
All holdings of private certificates of participation in pools of residential mortgages
19
All other
20
Foreign securities
21 Federal funds sold and securities purchased under agreements to resell 10
22
Federal funds sold
Securities purchased under agreements to resell
23
24 Total loans and lease financing receivables, gross
25
LESS: Unearned income on loans
26 Total loans and leases (net of unearned income)
27
28
29
30
31
32
33
34
35
36
37
38
Total loans, gross, by category
Loans secured by real estate
Construction and land development
Farmland
1-4 family residential properties
Revolving, open-end and extended under lines of credit
All other loans
Multifamily (5 or more) residential properties
Nonfarm nonresidential properties
Loans to commercial banks in the United States
Loans to other depository institutions in the United States
Loans to banks in foreign countries
Loans to finance agricultural production and other loans to farmers
39 Commercial and industrial loans
40
To U.S. addressees (domicile)
41
To non-U.S. addressees (domicile)
42 Acceptances of other banks 1 1
43
Of U.S. banks
44
Of foreign banks
Lease financing receivables
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining assets
Commercial Banks A73
4.20—Continued
Members
Total
Total
National
State
57 Total liabilities and equity capital
2,301,302
1,841,030
1,459,564
381,466
58 Total liabilities4
2,146,510
1,720,141
1,364,449
355,693
59 Total deposits
60
Individuals, partnerships, and corporations
61
U . S . government
62
States and political subdivisions in the United States
63
Commercial banks in the United States
64
Other depository institutions in the United States
65
Banks in foreign countries
66
Foreign governments and official institutions
67
Certified and official checks
1,680,799
1,524,731
3,721
81,965
37,704
6,749
8,226
1,637
16,065
1,316,352
1,188,904
3,065
62,925
33,920
5,480
7,435
1,504
13,119
1,062,174
963,135
2,680
53,000
25,331
4,183
4,179
699
8,966
254,178
225,768
385
9,925
8,589
1,297
3,255
805
4,153
68 Total transaction accounts
69
Individuals, partnerships, and corporations
70
U.S. government
71
States and political subdivisions in the United States
72
Commercial banks in the United States
73
Other depository institutions in the United States
74
Banks in foreign countries
75
Foreign governments and official institutions
76
Certified and official checks
521,990
446,165
2,488
18.562
25,937
4,828
7,149
794
16,065
426,007
359,789
1,990
14,944
24,473
4,208
6,755
729
13,119
335,132
287,323
1,654
12,120
18,070
3,039
3,664
296
8,966
90,875
72,466
335
2,824
6,403
1,168
3,091
433
4,153
77 Demand deposits (included in total transaction accounts)
78
Individuals, partnerships, and corporations
79
U.S. government
80
States and political subdivisions in the United States
81
Commercial banks in the United States
82
Other depository institutions in the United States
83
Banks in foreign countries
84
Foreign governments and official institutions
85
Certified and official checks
375,283
306,585
2,443
11,494
25,933
4,820
7,149
793
16,065
312,781
252,066
1,949
9,492
24,471
4,201
6,754
729
13,119
240,037
196,732
72,744
55,334
332
1,830
6,403
1,168
3,091
433
4,153
1,158,809
1,078,566
1,233
63,403
11,767
511
11,256
1,920
1,077
351
726
843
890,345
829,115
1,075
47,980
9,447
204
9,243
1,273
680
233
446
775
727,042
675,812
1,026
40,880
7,261
107
7,154
1,144
516
232
284
403
163,303
153,302
50
7,101
2,185
97
2,089
129
164
243,759
27,012
29,129
30.563
80,682
26,878
2,087
16,447
81,743
211,043
20,210
15,429
28,508
65,447
25,787
1,197
13,832
71,808
163,395
16,899
12,202
20,621
53,301
18,263
1,063
8,817
45,630
47,648
3,311
3,226
7,886
12,145
7,523
134
5,014
26,178
154,792
120,889
95,115
25,773
2,443
76,284
47,104
15,489
5,310
695
59,122
35,630
9,776
2,008
580
48,858
28,385
7,611
1,896
115
10,264
7,245
2,165
111
10,179
7,769
5,715
2,054
300,432
154,572
380,244
290,550
33,011
142,503
1,305,516
235,871
119,304
285,782
220,567
110,394
1,003,571
192,144
92,459
240,987
181,180
20,272
92,550
822,137
43,727
26,845
44,795
39,387
8,549
17,845
181,433
1,427,474
45,838
1,142,854
38,779
929,888
28,542
212,965
10,236
114,510
95,111
19,398
304,836
155,252
278,883
402,092
239,347
119,608
212,094
304,607
194,570
92,911
174,064
252,417
44,776
26,697
38,030
52,190
2,634
1,508
1,269
239
86 Total nontransaction accounts
87
Individuals, partnerships, and corporations
88
U.S. government
89
States and political subdivisions in the United States
90
Commercial banks in the United States
91
U.S. branches and agencies of foreign banks
92
Other commercial banks in the United States
93
Other depository institutions in the United States
94
Banks in foreign countries
95
Foreign branches of other U.S. banks
96
Other banks in foreign countries
97
Foreign governments and official institutions
98
99
100
101
102
103
104
105
106
Federal funds purchased and securities sold under agreements to repurchase 1 2
Federal funds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining liabilities
107 Total equity capital 9
1,618
7.662
18,068
3,033
3.663
2%
8,966
MEMO
108
109
110
111
112
113
114
115
116
117
118
119
120
Holdings of commercial paper included in total loans, gross
Total individual retirement accounts (IRA) and Keogh plan accounts
Total brokered deposits
Total brokered retail deposits
Issued in denominations of $100,000 or less
Issued in denominations greater than $100,000 and participated out by the broker in shares
of $100,000 or less
Savings deposits
Money market deposit accounts (MMDAs)
Other savings accounts
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All N O W accounts (including Super N O W accounts)
Total time and savings deposits
Quarterly averages
121 Total loans
122 Obligations (other than securities) of states and political subdivisions in the United States . . .
123 Transaction accounts (NOW accounts, ATS accounts, and telephone preauthorized
transfer accounts)
124
125
126
127
Nontransaction accounts
Money market deposit accounts (MMDAs)
Other savings deposits
Time certificates of deposits of $100,000 or more
All other time deposits
128 Number of banks
Footnotes appear at the end of table 4.22
28,821
1
163
372
All
Special Tables • August 1989
4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities12-6
Consolidated Report of Condition, September 30, 1988
M i l l i o n s of d o l l a r s
Members
Nonmembers
Item
Total
National
State
2,700,388
2,003,363
1,590,871
412,492
697,025
218,083
22,093
31,426
164,564
166,819
16,874
17,977
131,968
132,206
13,933
14,997
103,276
34,613
2,941
2,980
28,692
51,264
5,220
13,449
32,596
6 Total securities, loans, and lease financing receivables (net of unearned income)
2,317,704
1,700,061
1,365,305
334,756
617,642
7 Total securities, book value
8
U.S. Treasury securities and U.S. government agency and corporation obligations
9
Securities issued by states and political subdivisions in the United States
498,858
322,656
109,219
2,082
107,137
66,983
4,069
62,930
137,231
55,018
5,438
1,695,030
13,416
1,681,614
330,391
211,347
77,505
1,085
76,420
41,539
3,061
38,488
107,111
31,223
3,743
1,272,101
9,541
1,262,560
258,484
168,576
57,256
834
56,422
32,652
1,795
30,868
79,336
26,817
3,170
1,034,966
7,481
1,027,486
71,907
42,771
20,249
251
19,998
8,887
1,267
7,620
27,775
4,405
573
237,134
2,060
235,074
168,467
111,308
31,714
997
30,717
25,445
1,008
24,442
30,121
23,795
1,695
422,929
3,874
419,055
634,611
127,156
15,359
292,277
37,580
254,697
17,745
182,074
447,161
100,449
7,265
197,073
28,466
168,607
13,198
129,176
379,339
83,765
6,130
167,179
24,300
142,879
11,561
110,704
67,822
16,684
1,134
29,894
4,166
25,728
1,637
18,472
187,450
26,707
8,094
95,204
9,114
86,091
4,547
52,898
34,325
30,764
490,090
3,730
30,665
16,121
385,143
1,972
23,804
13,709
302,879
1,709
6,861
2,412
82,264
263
3,660
14,642
104,947
1,758
352,565
47,572
1,050
46,523
72,205
29,168
26,229
37,685
138,371
262,416
39,035
722
38,313
64,230
25,358
25,127
34,311
111,355
218,188
29,168
591
28,577
45,490
20,681
17,656
22,819
75,704
44,228
9,867
131
9,736
18,740
4,677
7,472
11,492
35,651
90,148
8,538
328
8,210
7,975
3,810
1,102
3,375
27,016
42 Total liabilities and equity capital
2,700,388
2,003,363
1,590,871
412,492
697,025
4
2,510,240
1,868,420
1,484,566
383,853
641,821
2,033,699
1,847,613
4,313
105,956
39,626
7,856
18,431
9,903
1,460,367
1,320,893
3,295
71,943
35,062
6,029
14,190
8,955
1,178,985
1,070,151
2,869
60,396
26,201
4,646
9,829
4,894
281,381
250,742
426
11,547
8,861
1,383
4,361
4,062
573,332
526,720
1,018
34,014
4,564
1,827
4,242
947
616,208
530,014
2,942
24,924
26,799
5,139
18,431
7,958
465,278
394,656
2,167
17,344
25,068
4,365
14,190
7,488
367,199
315,854
1,803
14,106
18,468
3,177
9,829
3,963
98,079
78,802
364
3,238
6,600
1,188
4,361
3,526
150,929
135,358
775
7,580
1,731
774
4,242
470
426,158
351,243
2,885
13,727
26,793
5,124
18,431
7,954
334,662
271,104
2,123
10,337
25,064
4,356
14,190
7,488
257,778
212,232
1,763
8,360
18,464
3,168
9,829
3,962
76,884
58,872
361
1,978
6,600
1,188
4,361
3,525
91,496
80,139
761
3,390
1,729
768
4,242
467
1,417,491
1,317,599
1,371
81,032
12,827
2,717
1,945
995,088
926,237
1,128
54,599
9,994
1,665
1,467
811,786
754,297
1,066
46,289
7,733
1,470
931
183,302
171,940
62
8,309
2,260
195
536
422,403
391,362
244
26,434
2,833
1,053
478
1 Total assets6
2 Cash and balances due from depository institutions
3
Currency and coin
4
Noninterest-bearing balances due from commercial banks
12
Other securities
13
All holdings of private certificates of participation in pools of residential mortgages
14
All other
15 Federal funds sold and securities purchased under agreements to resell
16
Federal funds sold
17
Securities purchased under agreements to resell
18 Total loans and lease financing receivables, gross
19
LESS: Unearned income on loans
20 Total loans and leases (net of unearned income)
Total loans, gross, by category
21 Loans secured by real estate
22
Construction and land development
23
Farmland
24
1-4 family residential properties
25
Revolving, open-end loans, and extended under lines of credit
26
All other loans
27
Multifamily (5 or more) residential properties
28
Nonfarm nonresidential properties
29
30
31
32
33
34
35
36
37
38
39
40
41
Loans to depository institutions
Loans to finance agricultural production and other loans to farmers
Commercial and industrial loans
Acceptances of other banks
Loans to individuals for household, family, and other personal expenditures
(includes purchased paper)
Obligations (other than securities) of states and political subdivisions in the United States
Nonrated industrial development obligations
Other obligations (excluding securities)
All other loans
Lease financing receivables
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining assets
43 Total liabilities
45
Individuals, partnerships, and corporations
47
48
49
50
51
States and political subdivisions in the United States
Commercial banks in the United States
Other depository institutions in the United States
Certified and official checks
All other
52 Total transaction accounts
53
Individuals, partnerships, and corporations
55
56
57
58
59
States and political subdivisions in the United States
Commercial banks in the United States
Other depository institutions in the United States
Certified and official checks
All other
60 Demand deposits (included in total transaction accounts)
61
Individuals, partnerships, and corporations
62
U.S. government
63
States and political subdivisions in the United States
64
Commercial banks in the United States
65
Other depository institutions in the United States
66
Certified and official checks
67
All other
68 Total nontransaction accounts
69
Individuals, partnerships, and corporations
70
U.S. government
71
States and political subdivisions in the United States
72
Commercial banks in the United States
73
Other depository institutions in the United States
74
All other
Commercial Banks
All
4.22—Continued
Members
Item
Nonmembers
Total
Total
National
State
247,498
28,516
31,365
31,210
82,536
26,900
2,392
16,447
86,005
212,687
21,057
16,226
28,793
66,088
25,798
1,250
13,832
73,437
164,639
17,491
12,854
20,849
53,757
18,273
1,110
8,817
46,952
48,048
3,566
3,372
7,943
12,331
7,525
140
5,014
26,485
34,811
7,459
15,139
2,417
16,448
1,102
1,142
2,615
12,569
190,147
134,943
106,305
28,639
55,204
85 Assets held in trading accounts
86
U.S. Treasury securities
87
U.S. government agency corporation obligations
88
Securities issued by states and political subdivisions in the United States
89 Other bonds, notes, and debentures
90
Certificates of deposit
91
Commercial paper
92
Bankers acceptances
93
Other
22,823
13,296
3,846
1,190
314
492
50
1,763
1,272
22,273
13,242
3,838
1,181
281
492
50
1,748
1,272
13,168
6,759
2,841
994
180
306
49
1,068
812
9,105
6,484
998
187
101
186
1
680
460
550
54
7
8
33
0
0
15
0
94 Total individual retirement accounts (IRA) and Keogh plan accounts
95 Total brokered deposits
96 Total brokered retail deposits
97
Issued in denominations of $100,000 or less
98
Issued in denominations greater than $100,000 and participated out by the broker
in shares of $100,000 or less
92,734
48,445
16,654
6,176
65,529
36,064
10,141
2,343
54,085
28,751
7,918
2,180
11,444
7,313
2,223
163
27,206
12,381
6,513
3,834
10,478
7,798
5,738
2,060
2,680
348,888
188,190
513,315
332,533
34,564
184,338
1,607,541
256,688
133,103
337,151
238,804
29,343
127,301
1,125,705
209,099
103,396
282,400
196,204
20,688
106,471
921,208
47,589
29,707
54,751
42,600
8,655
20,829
204,497
92,201
55,087
176,165
93,730
5,221
57,037
481,836
1,637,416
1,228,824
998,855
229,969
408,593
191,066
131,871
109,370
22,501
59,195
353,952
188,786
319,911
535,188
260,415
133,370
229,957
355,859
211,741
103,837
188,796
293,782
48,675
29,533
41,161
62,077
93,536
55,417
89,954
179,329
13,206
5,452
4,385
1,067
7,754
75
76
77
78
79
80
81
82
83
Federal funds purchased and securities sold under agreements to repurchase
Federal funds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining liabilities
84 Total equity capital9
MEMO
99
100
101
102
103
104
105
Savings deposits
Money market deposit accounts (MMDAs)
Other savings deposits
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All NOW accounts (including Super NOW)
Total time and savings deposits
Quarterly averages
106 Total loans
107 Transaction accounts (NOW accounts, ATS accounts, and telephone and preauthorized
transfer accounts)
108
109
110
Ill
Nontransaction accounts
Money market deposit accounts (MMDAs)
Other savings deposits
Time certificates of deposit of $100,000 or more
All other time deposits
112 Number of banks
1. Effective Mar. 31, 1984, the report of condition was substantially revised for
commercial banks. Some of the changes are as follows: (1) Previously, banks with
international banking facilities (IBFs) that had no other foreign offices were
considered domestic reporters. Beginning with the Mar. 31, 1984 call report these
banks are considered foreign and domestic reporters and must file the foreign and
domestic report of condition; (2) banks with assets greater than $1 billion have
additional items reported; (3) the domestic office detail for banks with foreign
offices has been reduced considerably; and (4) banks with assets under $25 million
have been excused from reporting certain detail items.
2. The " n . a . " for some of the items is used to indicate the lesser detail available
from banks without foreign offices, the inapplicability of certain items to banks
that have only domestic offices and/or the absence of detail on a fully consolidated
basis for banks with foreign offices.
3. All transactions between domestic and foreign offices of a bank are reported
in "net due from" and "net due t o . " All other lines represent transactions with
parties other than the domestic and foreign offices of each bank. Since these
intraoffice transactions are nullified by consolidation, total assets and total
liabilities for the entire bank may not equal the sum of assets and liabilities
respectively, of the domestic and foreign offices.
4. Foreign offices include branches in foreign countries, Puerto Rico, and in
U.S. territories and possessions; subsidiaries in foreign countries; all offices of
Edge act and agreement corporations wherever located and IBFs.
5. The 'over 100' column refers to those respondents whose assets, as of June
30 of the previous calendar year, were equal to or exceeded $100 million. (These
respondents file the FFIEC 032 or FFIEC 033 call report.) The 'under 100' column
refers to those respondents whose assets, as of June 30 of the previous calendar
year, were less than $100 million. (These respondents filed the FFIEC 034 call
report.)
6. Since the domestic portion of allowances for loan and lease losses and
allocated transfer risk reserve are not reported for banks with foreign offices, the
components of total assets (domestic) will not add to the actual total (domestic).
7. Since the foreign portion of demand notes issued to the U.S. Treasury is not
reported for banks with foreign offices, the components of total liabilities (foreign)
will not add to the actual total (foreign).
8. The definition of 'all other' varies by report form and therefore by column in
this table. See the instructions for more detail.
9. Equity capital is not allocated between the domestic and foreign offices of
banks with foreign offices.
10. Only the domestic portion of federal funds sold and securities purchased
under agreements to resell are reported here, therefore, the components will not
add to totals for this item.
11. "Acceptances of other banks" is not reported by domestic respondents less
than $300 million in total assets, therefore the components will not add to totals for
this item.
12. Only the domestic portion of federal funds purchased and securities sold
are reported here, therefore the components will not add to totals for this item.
13. Components of assets held in trading accounts are only reported for banks
with total assets of $1 billion or more; therefore the components will not add to the
totals for this item.
All
Special Tables • August 1989
4.20 DOMESTIC AND FOREIGN OFFICES, Insured Commercial Bank Assets and Liabilities1-2
Consolidated Report of Condition, December 31, 1988
Millions of dollars
Banks with foreign offices 3 ' 4
Item
1 Total assets6
2 Cash and balances due from depository institutions
3 Cash items in process of collection, unposted debits, and currency and coin
4
Cash items in process of collection and unposted debits
5
Currency and coin
6 Balances due from depository institutions in the United States
7 Balances due from banks in foreign countries and foreign central banks
8 Balances due from Federal Reserve Banks
MEMO
9 Noninterest-bearing balances due from commercial banks in the United States
(included in balances due from depository institutions in the United States)
10 Total securities, loans and lease financing receivables, net
11 Total securities, book value
12 U.S. Treasury securities and U.S. government agency and corporation
obligations
13
U.S. Treasury securities
14
U.S. government agency and corporation obligations
All holdings of U.S. government-issued or guaranteed certificates of
15
participation in pools of residential mortgages
16
All other
17 Securities issued by states and political subdivisions in the United States
18
Taxable
19
Tax-exempt
20 Other securities
">1
22
All holdings of private certificates of participation in pools of
residential mortgages
23
All other
">4
25 Federal funds sold and securities purchased under agreements to resell
26 Federal funds sold
27 Securities purchased under agreements to resell
28 Total loans and lease financing receivables, gross
29 LESS: Unearned income on loans
30 Total loans and leases (net of unearned income)
31 LESS: Allowance for loan and lease losses
32 LESS: Allocated transfer risk reserves
33 EQUALS: Total loans and leases, net
Total loans, gross, by category
34 Loans secured by real estate
35 Construction and land development
36 Farmland
37
1 4 family residential properties
38
Revolving, open-end loans, extended under lines of credit
39
All other loans
40 Multifamily (5 or more) residential properties
41 Nonfarm nonresidential properties
42 Loans to depository institutions
43 To commercial banks in the United States
44 To other depository institutions in the United States
45 To banks in foreign countries
Loans to finance agricultural production and other loans to farmers
Commercial and industrial loans
To U.S. addressees (domicile)
To non-U.S. addressees (domicile)
Acceptances of other banks
U.S. banks
Foreign banks
Loans to individuals for household, family and other personal expenditures (includes
purchased paper)
54 Credit cards and related plans
55 Other (includes single payment and installment)
46
47
48
49
50
51
52
53
56 Obligations (other than securities) of states and political subdivisions in the U.S.
(includes nonrated industrial development obligations)
57 Taxable
58 Tax-exempt
59 All other loans
60 Loans to foreign governments and official institutions
61 Other loans
62
Loans for purchasing and carrying securities
All other loans
63
64
65
66
67
68
69
70
71
72
Lease financing receivables
Assets held in trading accounts
Premises and fixed assets (including capitalized leases)
Other real estate owned
Investments in unconsolidated subsidiaries and associated companies
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge and agreement subsidiaries and, IBFs
Intangible assets
Other assets
Banks with domestic
offices only5
Total
Total
Foreign
Domestic
Over 100
Under 100
3,114,672
1,791,142
420,638
1,431,591
916,540
406,858
352,410
246,374
89,282
n.a.
n.a.
35,373
97,944
23,775
118,918
1,325
n.a.
n.a.
23,030
94,361
203
127,456
87,958
73,515
14,443
12,342
3,583
23,572
71,820
32,652
23,482
9,170
21,862
5,021
12,285
34.208
[
1
n.a.
1
T
n.a.
n.a.
2,536,951
1,375,045
n.a.
533,333
224,016
29,487
332,287
n.a.
n.a.
118,284
57,931
60,352
2,005
884
1,121
87,701
n.a.
105,682
2,083
103,599
95,348
n.a.
48,064
12,288
46,371
395
45,976
59,361
33,615
1,080
41
518
47
471
26,964
2,424
4,197
65,002
1,930
31,685
25,746
126,845
102,021
24,820
1,938,544
15,345
1,923,297
46,315
209
1,876,773
i
T
1
n.a.
1
t
13,809
11,440
806,197
355,596
194,529
189,697
119,605
116,279
57,047
59,231
125,489
67,300
58,189
88,514
n.a.
n.a.
46,984
12,247
45,853
348
45,505
32,397
31,191
24,217
33,972
38,683
689
37,994
25,525
25,121
15,409
n.a.
20,628
1,000
19,628
10,462
0
2,424
24,540
1,930
29,261
1,206
1,607
23,514
404
660
9,803
66,380
47,278
19,102
1,125,351
7,009
1,118,342
33,492
201
1,084,649
604
n.a.
n.a.
210,689
2,107
208,581
n.a.
n.a.
n.a.
65,776
n.a.
n.a.
914,663
4,902
909,761
n.a.
n.a.
n.a.
37,166
32,008
5,158
594,743
6,015
588,728
9,393
1
579,334
23,298
22,738
560
218,449
2,320
216,129
3,429
8
212,692
674,602
328,857
22,128
T
1
T
1
i
T
1
242,601
35,356
4,275
118,180
15,693
102,487
6,492
78,299
6,009
5,307
614
88
103,101
7,918
9,282
56,950
2,539
54,411
2,011
26,940
770
n.a.
n.a.
n.a.
8,078
n.a.
t
58,416
n.a.
n.a.
n.a.
51,637
22,280
2,777
26,580
24,194
988
467
22,740
306,730
85,799
1,895
125,575
21,603
103,972
9,694
83,767
27,443
21,293
2,311
3,840
30,101
596,508
n.a.
n.a.
5,012
n.a.
n.a.
5,748
415,851
333,000
82,851
819
230
589
277
99,351
19,160
80,192
376
34
341
5,471
316,499
313,840
2,659
443
196
247
6,669
135,342
135,047
294
2,074
n.a.
n.a.
17,683
45,315
n.a.
n.a.
2,119
n.a.
n.a.
374,120
116,522
257,583
158,510
46,666
111,844
12,126
n.a.
n.a.
146,384
n.a.
n.a.
171,094
66,636
104,458
44,515
3,219
41,296
44,951
1,265
43,686
120,538
n.a.
n.a.
n.a.
n.a.
27,495
669
26,826
107,741
35,148
72,594
n.a.
n.a.
340
21
319
47,859
33,398
14,461
n.a.
n.a.
27,155
648
26,508
59,882
1,749
58,133
14,158
43,975
15,370
501
14,869
10,544
255
10,289
1,601
8,688
2,085
95
1,990
2,252
n.a.
n.a.
n.a.
n.a.
34,340
35,463
45,468
11,218
2,774
33,040
n.a.
5,079
92,270
28,692
34,602
24,014
4,749
2,087
32,602
n.a.
3,108
68,562
4,038
16,465
24,654
18,137
n.a.
n.a.
n.a.
n.a.
44,833
n.a.
n.a.
5,039
661
14,416
3,827
642
410
n.a.
1,752
16,815
608
200
7,035
2,642
45
28
n.a.
219
6,885
n.a.
n.a.
1
1
t
n.a.
1
t
i
T
1
n.a.
1
t
Commercial Banks All
4.22—Continued
Banks with foreign offices 3
Banks with domestic
offices only
Item
Total
Foreign
Domestic
Over 100
Under 100
114,672
1,791,142
n.a.
n.a.
916,540
406,858
74 Total liabilities
75
Limited-life preferred stock
,918,768
84
1,694,771
0
420,625
n.a.
1,335,232
n.a.
852,249
83
371,625
2
76 Total deposits
77
Individuals, partnerships, and corporations
78
U.S. government
79
States and political subdivisions in the United States
80
Commercial banks in the United States
81
Other depository institutions in the United States
82
Banks in foreign countries
83
Foreign governments and official institutions
84
Certified and official checks
85
All other 8
,418,263
i
1,314,877
i
315,079
184,858
i
n.a.
n. a.
n.a.
20,425
n a
1
23,892
11,343
n. a.
999,798
900,909
2,949
41,273
28,781
5,182
8,163
1,713
10,829
742,052
679,608
1,933
41,675
9,482
2,401
440
289
6,223
361,334
329,939
725
24,836
1,864
1,060
n.a.
n.a.
2,859
51
340,447
285,659
2,017
9,602
19,708
3,873
7,528
1,232
10,829
217,124
190,375
1,589
10,902
6,430
1,356
233
16
6,223
99,901
88,420
597
6,789
883
337
n.a.
n.a.
2,859
17
262,599
210,099
1,988
7,343
19,707
3,873
7,527
1,231
10,829
138,954
117,571
1,568
5,566
6,429
1,348
232
15
6,223
659,351
615,250
932
31,671
9,073
686
8,387
1,308
635
4
631
482
524,928
489,233
344
30,773
3,052
167
2,886
1,044
207
206
1
274
54,711
47,770
581
2,275
881
330
n.a.
n.a.
2,859
16
261,433
241,519
128
18,047
981
n.a.
n.a.
724
n.a.
n.a.
n.a.
n.a.
34
73 Total liabilities, limited-life preferred stock, and equity capital
7
86 Total transaction accounts
87
Individuals, partnerships, and corporations
88
U . S . government
89
States and political subdivisions in the United States
90
Commercial banks in the United States
91
Other depository institutions in the United States
92
Banks in foreign countries
93
Foreign governments and official institutions
94
Certified and official checks
95
All other
96 Demand deposits (included in total transaction accounts)
97
Individuals, partnerships, and corporations
98
U.S. government
99
States and political subdivisions in the United States
100
Commercial banks in the United States
101
Other depository institutions in the United States
102
Banks in foreign countries
103
Foreign governments and official institutions
104
Certified and official checks
105
All other
106 Total nontransaction accounts
Individuals, partnerships, and corporations
107
108
U.S. government
109
States and political subdivisions in the United States
110
Commercial banks in the United States
111
U.S. branches and agencies of foreign banks
112
Other commercial banks in the United States
113
Other depository institutions in the United States
114
Banks in foreign countries
115
Foreign branches of other U.S. banks
116
Other banks in foreign countries
117
Foreign governments and official institutions
118
Mother
119
120
121
122
123
124
125
126
127
128
Federal funds purchased and securities sold under agreements to repurchase..
Federal funds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and I B F s . . ,
All other liabilities
Total equity capital 9
J
J
i
n.a.
n.a.
n.a.
*
<
<
n.a.
233,521
144,851
Si ,686
n.a.
118,055
33,184
17,226
n.a.
73,621
195,819
MEMO
129
130
131
132
133
134
135
136
137
138
139
140
141
Holdings of commercial paper included in total loans, gross
Total individual retirement accounts (IRA) and Keogh plan accounts
Total brokered deposits
Total brokered retail deposits
Issued in denominations of $100,000 or less
Issued in denominations greater than $100,000 and participated out by the
broker in shares of $100,000 or less
Savings deposits
Money market deposit accounts (MMDAs)
Other savings deposits (excluding MMDAs)
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All N O W accounts (including Super NOW)
Total time and savings deposits
22,178
514
1(V7
n.a.
n.a.
n.a.
172,875
114,903
57,972
n.a.
83,121
32,745
14,879
n.a.
56,273
96,371
424
n.a.
n.a.
n.a.
34,497
5,947
n.a.
n.a.
n.a.
n. a.
172,451
n.a.
n.a.
20,000
48,624
26,798
n.a.
16,254
n.a.
n.a.
57,232
28,459
28,773
4,323
33,179
410
2,031
n.a.
13,021
64,208
3,413
1,475
1,939
454
1,755
28
315
n.a.
4,325
35,232
1.566
831
734
41,105
37,889
9,379
1,634
1,339
37,240
13,951
8,760
4,813
n.a.
16,736
1,345
1,205
888
n.a.
n.a.
Quarterly averages
142 Total loans
143 Obligations (other than securities) of states and political subdivisions
in the United States
144 Transaction accounts in domestic offices (NOW accounts, ATS accounts, and
telephone and preauthorized transfer accounts)
Nontransaction accounts in domestic offices
145
Money market deposit accounts (MMDAs)
146
Other savings deposits
147
Time certificates of deposit of $100,000 or more
148
M other time deposits
13,079
149 Number of banks
http://fraser.stlouisfed.org/
Footnotes appear at the end
Federal Reserve Bank of St. Louis
of table 4.22
251
n a.
7,745
3,946
317
178,372
81,512
181,085
189,271
29,110
76,107
737,199
122,502
73,749
216
108,760
3,862
75,841
603,098
47,764
33,132
135,938
42,963
1,637
43,595
306,623
878,719
572,534
211,925
28,914
15,348
75,275
74,870
43,873
178,522
81,652
182,516
207,166
123,306
74,270
106,784
216,038
48,025
33,113
41,770
135,828
2,357
10,471
n.a.
n.a.
All
Special Tables • August 1989
4.21
DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or more or with foreign offices1-2-6
Consolidated Report of Condition, December 31, 1988
Millions of dollars
Members
Item
Nonmembers
Total
Total
National
State
2,348,131
1,873,730
1,496,524
377,206
474,401
199,276
96,997
23,613
34,204
8,605
35,857
165,099
87,538
19,553
22,656
6,009
29,344
131,322
69,457
16,352
18,292
4,938
22,284
33,776
18,081
3,200
4,364
1,071
7,060
34,178
9,459
4,061
11,548
2,5%
6,513
1,985,657
1,566,986
1,266,978
300,007
418,671
384,226
124,347
117,420
285,825
90,400
90,186
221,219
70,629
71,974
64,606
19,771
18,212
98,401
33,947
27,234
71,201
46,219
84,536
1,037
83,499
56,312
3,537
52,775
1,610
60,056
30,130
66,332
725
65,608
37,564
2,860
34,703
1,343
47,482
24,492
48,498
533
47,964
29,563
1,759
27,804
555
12,574
5,639
17,835
191
17,643
8,000
1,101
6,899
788
11,145
16,089
18,204
312
17,892
18,748
676
18,072
268
102,943
32,009
5,158
1,509,406
10,917
1,498,489
87,055
20,284
3,717
1,202,512
8,407
1,194,106
65,616
17,720
3,164
986,797
6,653
980,143
21,439
2,564
553
215,715
1,753
213,962
15,887
11,725
1,441
306,894
2,511
304,383
549,331
121,155
6,169
243,755
37,296
206,459
16,186
162,066
26,600
2,925
3,928
12,141
416,582
97,509
4,183
179,425
29,062
150,363
12,698
122,766
23,085
2,697
3,773
9,624
357,046
81,899
3,682
153,916
24,846
129,070
11,177
106,372
18,610
2,390
2,066
8,639
59,535
15,610
501
25,510
4,216
21,294
1,521
16,393
4,475
307
1,707
986
132,750
23,646
1,986
64,330
8,234
56,096
3,488
39,300
3,515
228
154
2,516
451,841
448,887
2,954
369,541
366,859
2,682
293,707
291,476
2,231
75,834
75,383
451
82,300
82,029
271
2,517
844
379
1,519
534
301
1,318
470
244
202
64
56
998
310
78
45 Loans to individuals for household, family, and other personal expenditures
(includes purchased paper)
46 Loans to foreign governments and official institutions
47 Obligations (other than securities) of states and political subdivisions in the United States
48 Taxable
49
50 Other loans
51 Loans for purchasing and carrying securities
52 All other loans
317,478
2,005
42,526
1,149
41,377
68,422
15,758
52,663
250,046
1,934
35,776
858
34,917
62,187
14,707
47,480
209,637
1,376
26,500
729
25,770
44,160
9,562
34,598
40,409
557
9,276
129
9,147
18,027
5,145
12,882
67,432
71
6,750
291
6,460
6,234
1,051
5,183
53 Lease financing receivables
54 Customers' liability on acceptances outstanding
55 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
56
29,693
26,483
44,833
136,714
25,747
25,342
40,621
116,304
21,347
17,990
24,770
80,233
4,400
7,352
15,851
36,071
3,946
1,141
4,212
20,411
1 Total assets6
2 Cash and balances due from depository institutions
Cash items in process of collection and unposted debits
4 Currency and coin
Balances due from depository institutions in the United States
6 Balances due from banks in foreign countries and foreign central banks
7 Balances due from Federal Reserve Banks
8 Total securities, loans and lease financing receivables, (net of unearned income)
9 Total securities, book value
10 U.S. Treasury securities
11 U.S. government agency and corporation obligations
All holdings of U.S. government-issued or guaranteed certificates of
12
participation in pools of residential mortgages
All other
n
14 Securities issued by states and political subdivisions in the United States
Taxable
15
16
Tax-exempt
17 Other domestic securities
All holdings of private certificates of participation in pools of residential mortgages
18
19
All other
20 Foreign securities
21 Federal funds sold and securities purchased under agreements to resell10
7.2 Federal funds sold
23 Securities purchased under agreements to resell
24 Total loans and lease financing receivables, gross
25 LESS: Unearned income on loans
26 Total loans and leases (net of unearned income)
27
28
79
30
31
37
33
34
35
36
n
38
Total loans, gross, by category
Loans secured by real estate
Construction and land development
Farmland
1-4 family residential properties
Revolving, open-end and extended under lines of credit
All other loans
Multifamily (5 or more) residential properties
Nonfarm nonresidential properties
Loans to commercial banks in the United States
Loans to other depository institutions in the United States
Loans to banks in foreign countries
Loans to finance agricultural production and other loans to farmers
39 Commercial and industrial loans
40 To U.S. addressees (domicile)
41 To non-U.S. addressees (domicile)
42 Acceptances of other banks 11
43 Of U.S. banks
44 Of foreign banks
Commercial Banks A73
4.20—Continued
Members
Total
National
State
57 Total liabilities and equity capital
2,348,131
1,873,730
1,496,524
377,206
4
2.187.482
1,748,071
1,399,091
348,980
59 Total deposits
60
Individuals, partnerships, and corporations
61
U.S. government
62
States and political subdivisions in the United States
63
Commercial banks in the United States
64
Other depository institutions in the United States
65
Banks in foreign countries
66
Foreign governments and official institutions
67
Certified and official checks
1,741,850
1,580,517
4,883
82,948
38,263
7,582
8,603
2,003
17,052
1,362,711
1,231,746
3,997
64,013
33,644
5,985
7,679
1,871
13,776
1,103,387
1,001,623
3,506
53,517
25,510
5,017
4,068
870
9,276
259,324
230,123
491
10,496
8,135
967
3,611
1,001
4,500
68 Total transaction accounts
69
Individuals, partnerships, and corporations
70
U.S. government
71
States and political subdivisions in the United States
72
Commercial banks in the United States
73
Other depository institutions in the United States
74
Banks in foreign countries
75
Foreign governments and official institutions
76
Certified and official checks
557,571
476,033
3,606
20,504
26,138
5,230
7,761
1,247
17,052
453,021
382,887
2,881
16,491
24,194
4,281
7,320
1,191
13,776
358,620
307,063
2,448
13,489
18,538
3,420
3,831
555
9,276
94,401
75,824
433
3,002
5,656
861
3,489
637
4,500
77 Demand deposits (included in total transaction accounts)
78
Individuals, partnerships, and corporations
79
U . S . government
80
States and political subdivisions in the United States
81
Commercial banks in the United States
82
Other depository institutions in the United States
83
Banks in foreign countries
84
Foreign governments and official institutions
85
Certified and official checks
401,552
327,670
3,556
12,909
26,136
5,222
7,760
1,246
17,052
332,119
267,900
2,834
10,630
24,193
4,276
7,319
1,191
13,776
256,835
210,248
2,405
8,569
18,537
3,415
3,830
.555
9,276
75,284
57,652
430
2,061
5,656
861
3,488
637
4,500
1,184,278
1.104.483
1,277
62,443
12,125
852
11,273
2,352
842
210
632
756
909,690
848,859
1,116
47,522
9,450
541
8,909
1,704
360
4
355
680
744,767
694,559
1,059
40,028
6,972
387
6,584
1,598
237
236
315
164,923
154,300
57
7,494
2,479
154
2,235
106
122
3
119
365
229,683
28,564
28,855
24,323
81,803
27,208
2,031
16,254
80,583
198,817
21,226
15,099
22,304
67,961
26,067
12,974
68,986
154,647
17,559
12,041
17,264
56,023
18,621
1,082
10,472
48,066
44,169
3,666
3,058
5,040
11,938
7,445
144
2,502
20,920
160,649
125,659
97,432
28,226
2,073
78,344
51,840
18,139
6,448
1,100
60,892
39,236
12,043
2,511
941
50,349
31,897
9,562
2,395
159
10,544
7,339
2,480
116
11,691
9,531
7,167
2,364
300,873
155,261
397,141
298,031
32,972
151,948
1,340,297
236,742
119,829
299,349
225,073
28,698
118,150
1,030,592
193,196
92,841
253,580
185,400
19,750
99,337
846,552
43,545
26,988
45,769
39,673
8,948
18,813
184,039
1,451,253
44,262
1,157,259
37,618
948,700
27,646
208,559
9,972
150,145
116,474
97,174
19,300
301,828
155,922
289,300
423,204
236,737
120,093
219,936
322,539
193,210
93,496
181,190
270,302
43,527
26,597
38,746
52,237
2,608
1,495
1,261
234
58 Total liabilities
86 Total nontransaction accounts
87
Individuals, partnerships, and corporations
88
U . S . government
89
States and political subdivisions in the United States
90
Commercial banks in the United States
91
U . S . branches and agencies of foreign banks
92
Other commercial banks in the United States
93
Other depository institutions in the United States
94
Banks in foreign countries
95
Foreign branches of other U.S. banks
96
Other banks in foreign countries
97
Foreign governments and official institutions
98
99
100
101
102
103
104
105
106
Federal funds purchased and securities sold under agreements to repurchase 1 2
Federal fijnds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining liabilities
107 Total equity capital 9
MEMO
108
109
110
111
112
113
114
115
116
117
118
119
120
Holdings of commercial paper included in total loans, gross
Total individual retirement accounts (IRA) and Keogh plan accounts
Total brokered deposits
Total brokered retail deposits
Issued in denominations of $100,000 or less
Issued in denominations greater than $100,000 and participated out by the broker in shares
of $100,000 or less
Savings deposits
Money market deposit accounts (MMDAs)
Other savings accounts
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All N O W accounts (including Super N O W accounts)
Total time and savings deposits
Quarterly averages
121 Total loans
122 Obligations (other than securities) of states and political subdivisions in the United States . . .
123 Transaction accounts (NOW accounts, ATS accounts, and telephone preauthorized
transfer accounts)
124
125
126
127
Nontransaction accounts
Money market deposit accounts (MMDAs)
Other savings deposits
Time certificates of deposits of $100,000 or more
All other time deposits
128 Number of banks
Footnotes appear at the end of table 4.22
1,226
1
All
Special Tables • August 1989
4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1'2'6
Consolidated Report of Condition, December 31, 1988
M i l l i o n s of d o l l a r s
Members
Nonmembers
Item
Total
National
State
2,754,989
2,039,521
1,630,552
408,969
715,468
233,484
27,563
33,327
172,594
179,454
21,188
18,642
139,625
143,183
17,680
15,564
109,939
36,271
3,508
3,078
29,685
54,029
6,375
14,685
32,969
2,344,689
1,712,805
1,384,529
328,276
631,884
503,830
330,282
105,164
2,036
103,128
68,385
4,197
64,393
126,241
54,747
5,718
1,727,855
13,238
1,714,617
332,805
215,292
74,241
1,060
73,181
43,272
3,176
40,302
97,655
30,553
4,048
1,291,763
9,419
1,282,344
259,481
170,816
54,931
804
54,127
33,735
1,959
31,981
74,305
26,121
3,452
1,058,182
7,440
1,050,742
73,324
44,476
19,310
256
19,054
9,537
1,217
8,320
23,350
4,432
596
233,581
1,979
231,602
171,025
114,989
30,923
976
29,947
25,113
1,021
24,092
28,586
24,194
1,671
436,092
3,818
432,273
652,432
129,073
15,451
300,705
39,835
260,870
18,197
189,006
458,297
100,804
7,313
202,843
30,135
172,708
13,453
133,884
390,404
84,551
6,190
172,420
25,685
146,735
11,794
115,449
67,894
16,254
1,123
30,423
4,450
25,973
1,659
18,435
194,135
28,269
8,138
97,863
9,701
88,162
4,744
55,122
34,222
29,824
497,156
4,636
29,939
15,944
389,103
2,353
23,404
13,666
309,216
2,038
6,535
2,279
79,887
314
4,283
13,880
108,053
2,283
361,993
44,611
1,244
43,367
72,679
30,302
26,512
44,844
150,305
268,619
36,557
898
35,659
65,009
25,942
25,357
40,621
121,906
224,603
27,154
762
26,392
46,201
21,497
18,001
24,770
84,840
44,016
9,403
135
9,268
18,808
4,445
7,356
15,851
37,066
93,375
8,054
346
7,708
7,670
4,360
1,155
4,223
28,399
42 Total liabilities and equity capital
2,754,989
2,039,521
1,630,552
408,969
715,468
43 Total liabilities4
2,559,106
1,899,836
1,521,980
377,856
659,270
2,103,184
1,910,456
5,608
107,784
40,128
8,643
19,911
10,656
1,510,266
1,366,776
4,286
73,308
34,768
6,507
15,053
9,569
1,223,011
1,111,043
3,742
61,138
26,363
5,464
10,306
4,955
287,255
255,732
544
12,170
8,405
1,044
4,748
4,614
592,918
543,680
1,322
34,476
5,360
2,135
4,858
1,088
657,473
564,453
4,203
27,294
27,021
5,567
19,911
9,025
494,637
419,708
3,117
18,962
24,835
4,448
15,053
8,515
392,593
337,191
2,644
15,519
18,977
3,567
10,306
4,389
102,044
82,517
473
3,443
5,858
881
4,748
4,127
162,835
144,745
1,087
8,332
2,186
1,119
4,858
509
456,264
375,440
4,137
15,185
27,018
5,552
19,911
9,022
355,652
288,282
3,068
11,460
24,843
4,441
15,053
8,514
275,935
226,843
2,598
9,263
18,976
3,560
10,306
4,388
79,716
61,439
469
2,197
5,858
880
4,748
4,126
100,612
87,158
1,069
3,724
2,184
1,111
4,858
508
1,445,711
1,346,002
1,405
80,490
13,106
3,076
1,632
1,015,629
947,068
1,169
54,346
9,933
2,060
1,053
830,418
773,852
1,099
45,620
7,386
1,8%
566
185,211
173,216
71
8,726
2,547
163
487
430,082
398,935
235
26,144
3,173
1,017
578
1 Total assets6
2 Cash and balances due from depository institutions
3
Currency and coin
4
Noninterest-bearing balances due from commercial banks
5
Other
6 Total securities, loans, and lease financing receivables (net of unearned income)
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total securities, book value
U.S. Treasury securities and U.S. government agency and corporation obligations
Securities issued by states and political subdivisions in the United States
Taxable
Tax-exempt
Other securities
All holdings of private certificates of participation in pools of residential mortgages
All other
Federal funds sold and securities purchased under agreements to resell
Federal funds sold
Securities purchased under agreements to resell
Total loans and lease financing receivables, gross
LESS: Unearned income on loans
Total loans and lfeases (net of unearned income)
Total loans, gross, by category
21 Loans secured by real estate
22
Construction and land development
24
25
26
27
28
1-4 family residential properties
Revolving, open-end loans, and extended under lines of credit
All other loans
Multifamily (5 or more) residential properties
Nonfarm nonresidential properties
29
30
31
32
33
Loans to depository institutions
Loans to finance agricultural production and other loans to farmers
Commercial and industrial loans
Acceptances of other banks
Loans to individuals for household, family, and other personal expenditures
(includes purchased paper)
34 Obligations (other than securities) of states and political subdivisions in the United States
35
Nonrated industrial development obligations
36
Other obligations (excluding securities)
38 Lease financing receivables
39 Customers' liability on acceptances outstanding
40 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
45
Individuals, partnerships, and corporations
47
48
49
50
51
States and political subdivisions in the United States
Commercial banks in the United States
Other depository institutions in the United States
Certified and official checks
All other
52 Total transaction accounts
53
Individuals, partnerships, and corporations
55
56
57
58
59
States and political subdivisions in the United States
Commercial banks in the United States
Other depository institutions in the United States
Certified and official checks
All other
60 Demand deposits (included in total transaction accounts)
61
Individuals, partnerships, and corporations
62
U.S. government
63
States and political subdivisions in the United States
64
Commercial banks in the United States
65
Other depository institutions in the United States
66
Certified and official checks
67
All other
68 Total nontransaction accounts
69
Individuals, partnerships, and corporations
70
U.S. government
71
States and political subdivisions in the United States
72
Commercial banks in the United States
73
Other depository institutions in the United States
74
All other
Commercial Banks All
4.22—Continued
Members
Nonmembers
Total
Item
Total
National
State
233,096
30,039
30,793
24,778
83,558
27,237
2,346
16,254
84,907
200,477
22,054
15,932
22,506
68,560
26,082
1,281
12,974
70,665
155,916
18,154
12,715
17,430
56,432
18,633
1,128
10,472
49,430
44,561
3,900
3,217
5,076
12,127
7,449
152
2,502
21,235
32,619
7,985
14,862
2,271
14,999
1,155
1,066
3,280
14,242
195,883
139,685
108,572
31,113
56,198
85 Assets held in trading accounts
86
U.S. Treasury securities
87
U.S. government agency corporation obligations
88
Securities issued by states and political subdivisions in the United States
89
Other bonds, notes, and debentures
90
Certificates of deposit
91
Commercial paper
92
Bankers acceptances
93
Other
18,998
9,915
3,286
1,178
212
847
19
1,582
1,448
18,549
9,913
3,281
1,165
212
797
19
1,566
1,434
11,203
5,068
2,257
960
99
456
19
1,112
1,074
7,345
4,845
1,024
205
113
341
0
454
360
450
3
5
13
0
50
0
17
14
94 Total individual retirement accounts (IRA) and Keogh plan accounts
95 Total brokered deposits
96 Total brokered retail deposits
97
Issued in denominations of $100,000 or less
98
Issued in denominations greater than $100,000 and participated out by the broker
in shares of $100,000 or less
95,081
53,185
19,344
7,336
67,420
39,631
12,370
2,809
55,674
32,229
9,835
2,644
11,746
7,401
2,535
165
27,660
13,554
6,974
4,528
12,008
9,562
7,191
2,370
2,446
348,637
188,393
533,079
340,993
34,609
195,543
1,646,920
257,426
133,436
351,728
243,800
29,238
135,717
1,154,615
210,029
103,634
295,776
200,791
20,188
113,818
947,076
47,397
29,802
55,952
43,009
9,050
21,900
207,539
91,211
54,957
181,350
97,193
5,371
59,826
492,306
1,663,178
1,243,954
1,018,132
225,822
419,224
194,018
134,054
111,597
22,457
59,964
349,853
189,035
331,071
559,032
257,485
133,698
238,100
374,668
210,101
104,311
196,135
312,287
47,384
29,387
41,965
62,381
92,368
55,337
92,971
184,364
13,079
5,396
4,338
1,058
7,683
75
76
77
78
79
80
81
82
83
Federal funds purchased and securities sold under agreements to repurchase
Federal funds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining liabilities
84 Total equity capital9
MEMO
99
100
101
102
103
104
105
Savings deposits
Money market deposit accounts (MMDAs)
Other savings deposits
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All N O W accounts (including Super NOW)
Total time and savings deposits
Quarterly averages
106 Total loans
107 Transaction accounts (NOW accounts, ATS accounts, and telephone and preauthorized
transfer accounts)
108
109
110
Ill
Nontransaction accounts
Money market deposit accounts (MMDAs)
Other savings deposits
Time certificates of deposit of $100,000 or more
All other time deposits
112 Number of banks
1. Effective Mar. 31, 1984, the report of condition was substantially revised for
commercial banks. Some of the changes are as follows: (1) Previously, banks with
international banking facilities (IBFs) that had no other foreign offices were
considered domestic reporters. Beginning with the Mar. 31, 1984 call report these
banks are considered foreign and domestic reporters and must file the foreign and
domestic report of condition; (2) banks with assets greater than $1 billion have
additional items reported; (3) the domestic office detail for banks with foreign
offices has been reduced considerably; and (4) banks with assets under $25 million
have been excused from reporting certain detail items.
2. The " n . a . " for some of the items is used to indicate the lesser detail available
from banks without foreign offices, the inapplicability of certain items to banks
that have only domestic offices and/or the absence of detail on a fully consolidated
basis for banks with foreign offices.
3. All transactions between domestic and foreign offices of a bank are reported
in "net due f r o m " and " n e t due t o . " All other lines represent transactions with
parties other than the domestic and foreign offices of each bank. Since these
intraoffice transactions are nullified by consolidation, total assets and total
liabilities for the entire bank may not equal the sum of assets and liabilities
respectively, of the domestic and foreign offices.
4. Foreign offices include branches in foreign countries, Puerto Rico, and in
U.S. territories and possessions; subsidiaries in foreign countries; all offices of
Edge act and agreement corporations wherever located and IBFs.
5. The 'over 100' column refers to those respondents whose assets, as of June
30 of the previous calendar year, were equal to or exceeded $100 million. (These
respondents file the F F I E C 032 or F F I E C 033 call report.) The 'under 100' column
refers to those respondents whose assets, as of June 30 of the previous calendar
year, were less than $100 million. (These respondents filed the F F I E C 034 call
report.)
6. Since the domestic portion of allowances for loan and lease losses and
allocated transfer risk reserve are not reported for banks with foreign offices, the
components of total assets (domestic) will not add to the actual total (domestic).
7. Since the foreign portion of demand notes issued to the U.S. Treasury is not
reported for banks with foreign offices, the components of total liabilities (foreign)
will not add to the actual total (foreign).
8. The definition of 'all other' varies by report form and therefore by column in
this table.
See the instructions for more detail.
9. Equity capital is not allocated between the domestic and foreign offices of
banks with foreign offices.
10. Only the domestic portion of federal funds sold and securities purchased
under agreements to resell are reported here, therefore, the components will not
add to totals for this item.
11. "Acceptances of other b a n k s " is not reported by domestic respondents less
than $300 million in total assets, therefore the components will not add to totals for
this item.
12. Only the domestic portion of federal funds purchased and securities sold
are reported here, therefore the components will not add to totals for this item.
13. Components of assets held in trading accounts are only reported for banks
with total assets of $1 billion or more; therefore the components will not add to the
totals for this item.
All
Special Tables • August 1989
4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, March 31, 19891
M i l l i o n s of d o l l a r s
All states 2
Item
1 Total assets4
New York
California
Total
including
IBFs
IBFs
only 3
Total
including
IBFs
IBFs
only
Total
including
IBFs
Illinois
IBFs
only
Total
including
IBFs
IBFs
only
522,853
253,822
385,878
200,836
74,356
32,754
37,466
13,021
2 Claims on nonrelated parties
3 Cash and balances due from depository institutions
4
Cash items in process of collection and unposted
debits . . . ; ;
5
Currency and coin (U.S. and foreign)
6
Balances with depository institutions in United States . .
7
U.S. branches and agencies of other foreign banks
(including their IBFs)
8
Other depository institutions in United States
(including their IBFs)
9
Balances with banks in foreign countries and with
foreign central banks
10
Foreign branches of U.S. banks
11
Other banks in foreign countries and foreign central
banks
12
Balances with Federal Reserve Banks
467,283
126,991
205,939
107,689
344,125
103,989
162,800
87,654
67,736
12,627
27,612
11,825
37,074
8,681
12,110
7,168
702
26
65,496
1
n.a.
48,304
656
18
53,017
1
n.a.
38,474
28
2
6,496
0
n.a.
5,798
6
1
5,413
0
n.a.
3,960
56,786
45,679
45,819
36,072
5,973
5,660
4,688
3,895
8,709
2,625
7,198
2,402
523
138
725
65
59,934
1,011
59,383
925
49,637
849
49,179
768
6,051
121
6,027
116
3,217
15
3,208
15
58,923
834
58,458
n.a.
48,788
661
48,411
n.a.
5,930
50
5,911
n.a.
3,202
44
3,193
n.a.
13 Total securities and loans
279,855
88,813
191,291
67,895
46,774
14,108
26,120
4,515
33,509
5,934
10,139
n.a.
27,469
5,553
7,734
n.a.
3,862
141
1,689
n.a.
1,351
171
556
n.a.
14 Total securities, book value
15
U.S. Treasury
16
Obligations of U.S. government agencies and
corporations
17
Other bonds, notes, debentures and corporate stock
(including state and local securities)
22,692
10,139
17,093
7,734
3,674
1,689
1,180
556
18 Federal funds sold and securities purchased under
agreements to resell
19
U.S. branches and agencies of other foreign banks
20
Commercial banks in United States
21
Other
13,546
8,208
2,774
2,564
1,951
1,243
40
668
11,814
6,782
2,549
2,482
1,512
868
16
628
1,103
958
85
60
413
353
20
40
348
322
26
0
5
5
0
0
246,589
244
246,345
78,716
42
78,673
163,979
156
163,822
60,199
38
60,160
42,969
57
42,912
12,423
3
12,420
24,793
23
24,769
3,959
0
3,958
23,254
63,718
33,030
29,467
3,563
206
43,462
15,295
14,698
597
12,435
45,873
23,000
19,952
3,048
168
29,691
9,009
8,524
485
5,658
11,679
6,649
6,379
270
31
9,084
4,219
4,109
111
3,108
4,620
3,105
2,892
213
0
3,483
1,980
1,979
1
139
30,549
395
30,155
6,035
0
28,166
346
27,820
579
91
22,782
308
22,474
3,713
0
20,682
260
20,422
443
47
4,983
73
4,910
946
0
4,865
73
4,792
74
0
1,515
12
1,503
687
0
1,503
12
1,492
40
129,494
106,785
22,709
772
290
482
17,740
165
17,575
19
0
19
81,134
63,063
18,071
648
218
430
14,925
116
14,810
17
0
17
22,788
19,656
3,132
61
55
6
2,211
44
2,167
0
0
0
15,991
15,512
479
29
2
27
319
5
313
2
0
2
18,576
16,471
16,587
14,721
1,077
1,023
132
115
2,549
2,192
51
188
1,848
1,741
51
181
685
75
0
0
0
225
0
0
46,892
26,486
17,595
8,891
7,487
n.a.
n.a.
n.a.
37,032
20,632
12,261
8,371
5,739
n.a.
n.a.
n.a.
7,232
4,704
4,402
302
1,266
n.a.
n.a.
n.a.
1,925
846
826
19
422
n.a.
n.a.
n.a.
20,406
55,570
7,487
47,884
16,399
41,753
5,739
38,037
2,528
6,620
1,266
5,142
1,079
391
422
911
n.a.
41,753
n.a.
22 Total loans, gross
Less: Unearned income on loans
23
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 (including
30
IBFs)..
31
Banks in foreign countries
32
Foreign branches of U.S. banks
33
Other banks in foreign countries
34 Other financial institutions
35 Commercial and industrial loans
36
U.S. addressees (domicile)
37
Non-U.S. addressees (domicile)
38 Acceptances of other banks
39
U.S. banks
40
Foreign banks
41 Loans to foreign governments and official institutions
(including foreign central banks)
42 Loans for purchasing or carrying securities (secured and
unsecured)
43 All other loans
44 All other assets
45
Customers' liability on acceptances outstanding
U.S. addressees (domicile)
46
47
Non-U.S. addressees (domicile)
Other assets including other claims on nonrelated
48
parties
49 Net due from related depository institutions
Net due from head office and other related depository
50
institutions
Net due from establishing entity, head offices, and other
51
related depository institutions
4,883
55,570
n.a.
4,823
n.a.
47
n.a.
0
n.a.
6,620
n.a.
n.a.
47,884
n.a.
38,037
n.a.
5,142
n.a.
52 Total liabilities4
522,853
253,822
385,878
200,836
74,356
32,754
37,466
13,021
53 Liabilities to nonrelated parties
450,792
226,428
344,899
180,897
67,790
30,600
22,384
8,141
391
n.a.
911
U.S. Branches and Agencies
A85
4.30—Continued
Millions of dollars
All states2
Item
54 Total deposits and credit balances
55 Individuals, partnerships, and corporations
56
U.S. addressees (domicile)
57
Non-U.S. addressees (domicile)
58 Commercial banks in United States (including IBFs)...
59
U.S. branches and agencies of other foreign banks ..
60
Other commercial banks in United States
61 Banks in foreign countries
62
Foreign branches of U.S. banks
63
Other banks in foreign countries
64 Foreign governments and official institutions
(including foreign central banks)
65 All other deposits and credit balances
66 Certified and official checks
67 Transaction accounts and credit balances
(excluding IBFs)
Individuals, partnerships, and corporations
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Commercial banks in United States (including IBFs)...
U.S. branches and agencies of other foreign banks ..
Other commercial banks in United States
Banks in foreign countries
Foreign branches of U.S. banks
Other banks in foreign countries
Foreign governments and official institutions
(including foreign central banks)
78 All other deposits and credit balances
79 Certified and official checks
68
69
70
71
72
73
74
75
76
77
80 Demand deposits (included in transaction accounts
and credit balances)
81 Individuals, partnerships, and corporations
82
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
83
84 Commercial banks in United States (including IBF)s...
85
U.S. branches and agencies of other foreign banks ..
86
Other commercial banks in United States
87 Banks in foreign countries
88
Foreign branches of U.S. banks
89
Other banks in foreign countries
90 Foreign governments and official institutions
(including foreign central banks)
91 All other deposits and credit balances
92 Certified and official checks
93 Non-transaction accounts (including MMDAs,
excluding IBFs)
94 Individuals, partnerships, and corporations
95
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
96
97 Commercial banks in United States (including IBFs)...
98
U.S. branches and agencies of other foreign banks ..
99
Other commercial banks in United States
100 Banks in foreign countries
101
Foreign branches of U.S. banks
102
Other banks in foreign countries
103 Foreign governments and official institutions
(including foreign central banks)
104 All other deposits and credit balances
105 IBF deposit liabilities
106 Individuals, partnerships, and corporations
107
U.S. addressees (domicile)
108
Non-U.S. addressees (domicile)
109 Commercial banks in United States (including IBFs)...
110
U.S. branches and agencies of other foreign banks ..
111
Other commercial banks in United States
112 Banks in foreign countries
113
Foreign branches of U.S. banks
114
Other banks in foreign countries
115 Foreign governments and official institutions
(including foreign central banks)
116 All other deposits and credit balances
For notes see end of table.
New York
California
Illinois
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
IBFs
only
72,068
58,245
45,111
13,134
9,521
4,078
5,443
1,811
211
1,600
180,633
14,939
457
14,482
56,170
48,865
7,306
100,153
8,013
92,140
58,944
47,063
38,840
8,224
7,947
2,999
4,947
1,670
191
1,480
158,769
9,903
432
9,471
48,179
42,388
5,791
91,609
6,517
85,092
3,280
2,264
666
1,597
887
88
399
40
20
20
12,295
341
0
341
5,388
4,188
1,200
6,479
1,087
5,392
3,402
2,721
1,850
871
654
567
87
7
0
7
4,008
56
23
32
2,278
1,998
280
1,655
362
1,293
923
988
581
9,123
249
n.a.
828
947
490
8,829
249
n a.
21
33
36
87
0
1
1
16
19
0
n. a.
6,773
4,495
3,281
1,213
225
105
120
828
7
821
n. a.
5,716
3,640
2,766
874
218
104
113
766
7
759
n a.
270
217
170
47
1
0
1
10
0
10
n a.
n. a.
225
203
198
5
1
0
1
2
0
2
336
308
581
306
296
490
2
5
36
1
1
16
5,760
3,872
2,859
1,014
83
32
50
706
7
699
4,938
3,242
2,478
763
77
32
45
648
7
642
203
151
121
30
1
0
1
10
0
10
211
189
184
5
1
0
1
2
0
2
n a.
n a.
n.a.
293
225
581
267
215
490
2
3
36
1
1
16
65,296
53,750
41,829
11,921
9,296
3,973
5,324
983
204
779
53,228
43,423
36,074
7,350
7,729
2,895
4,834
904
184
720
3,010
2,046
497
1,550
885
487
398
30
20
10
3,177
2,518
1,652
866
653
567
86
5
0
5
n.a.
587
680
n.a.
n.a.
521
650
180,633
14,939
457
14,482
56,170
48,865
7,306
100,153
8,013
92,140
9,123
249
n.a.
n.a.
20
28
158,769
9,903
432
9,471
48,179
42,388
5,791
91,609
6,517
85,092
8,829
249
n. a.
n. a.
n.a.
n. a.
0
1
12,295
341
0
341
5,388
4,188
1,200
6,479
1,087
5,392
87
0
n. a.
4,008
56
23
32
2,278
1,998
280
1,655
362
1,293
19
0
All
Special Tables • August 1989
4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, March 31, 1989'—Continued
Millions of dollars
All states2
Item
117 Federal funds purchased and securities sold under
agreements to repurchase
118 U.S. branches and agencies of other foreign banks
119 Other commercial banks in United States
120 Other
121 Other borrowed money
122 Owed to nonrelated commercial banks in United States
(including IBFs)
123 Owed to U.S. offices of nonrelated U.S. banks
124 Owed to U.S. branches and agencies of
nonrelated foreign banks
125 Owed to nonrelated banks in foreign countries
126 Owed to foreign branches of nonrelated U.S. banks . . .
127 Owed to foreign offices of nonrelated foreign b a n k s . . . .
128 Owed to others
129 All other liabilites
130 Branch or agency liability on acceptances executed
and outstanding
131 Other liabilities to nonrelated parties
132 Net due to related depository institutions5
133 Net due to head office and other related depository
institutions
134 Net due to establishing entity, head office, and other
related depository institutions
New York
Illinois
California
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
42,722
9,371
18,221
15,129
109,178
2,507
1,151
245
1,110
36,708
30,209
6,104
10,345
13,760
61,598
1,501
458
52
991
15,416
8,853
2,455
5,620
777
35,180
732
533
193
5
16,581
3,075
647
1,980
449
10,038
146
/5
0
/I
3,689
64,753
29,621
14,464
2,832
33,086
17,048
3,190
931
23,504
8,706
9,146
1,610
6,215
3,214
1,473
107
34,952
20,401
2,631
17,770
24,205
11,632
19,783
2,442
17,341
2,462
16,037
10,409
1,152
9,257
18,103
2,259
9,851
963
8, 588
2,374
14,798
7,366
1,201
6,165
4,309
7,536
7,348
1,201
6,147
87
3,001
2,226
174
2,052
1,597
1,367
2,215
174
2,041
0
46,190
6,580
35,379
5,212
8,182
991
1,861
299
29,690
16,500
n.a.
6,580
21,849
13,529
n. a.
5,212
6,256
1,926
n. a.
991
1,061
799
n. a.
299
4,880
72,060
27,394
40,979
19,939
6,566
2,155
15,082
72,060
n.a.
40,979
n.a.
6,566
n.a.
15,082
n.a.
n.a.
27,394
n.a.
19,939
n.a.
2,155
n.a.
4,880
MEMO
135 Non-interest bearing balances with commercial banks
in United States
136 Holding of commercial paper included in total loans
137 Holding of own acceptances included in commercial
and industrial loans
138 Commercial and industrial loans with remaining maturity
of one year or less
139 Predetermined interest rates
140 Floating interest rates
141 Commercial and industrial loans with remaining maturity
of more than one year
142 Predetermined interest rates
143 Floating interest rates
2,313
991
8
2,091
711
6
122
214
0
46
66
2,546
1,404
956
93
66,587
39,697
26,890
37,857
20,858
16,999
13,124
9,675
3,449
8,991
5,000
3,991
62,907
20,341
42,566
n.a.
43,278
14,505
28,773
n. a.
9,664
3,345
6,318
n.a.
7,000
1,999
5,000
0
n. a.
U.S. Branches and Agencies
A87
4.30—Continued
Millions of dollars
All states 2
Item
144 Components of total nontransaction accounts,
included in total deposits and credit balances of
nontransactional accounts, including IBFs
145 Time CDs in denominations of $100,000 or more
146 Other time deposits in denominations of $100,000
or more
147 Time CDs in denominations of $100,000 or more
with remaining maturity of more than 12 months ..
Total
excluding
IBFs
IBFs
only
88,375
48,907
11,465
n.a.
•
28,003
IBFs
only
Total
excluding
IBFs
Illinois
IBFs
only3
9,512
n.a.
633
n.a.
25,783
t
513
t
New York
IBFs
only
Total
including
IBFs
IBFs
only
31,123
9,615
25,353
65,327
524
n.a.
36,218
243
Total
excluding
IBFs
IBFs
only3
3,648
1,824
2,918
1,772
Total
including
IBFs
1. Data are aggregates of categories reported on the quarterly form FFIEC 002,
"Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign
Banks." Details may not add to totals because of rounding. This form was first
used for reporting data as of June 30, 1980, and was revised as of December 31,
1985. From November 1972 through May 1980, U.S. branches and agencies of
foreign banks had filed a monthly FR 886a report. Aggregate data from that report
were available through the Federal Reserve statistical release G. 11, last issued on
July 10, 1980. Data in this table and in the G . l l tables are not strictly comparable
because of differences in reporting panels and in definitions of balance sheet
items.
2. Includes the District of Columbia.
3. Effective December 1981, the Federal Reserve Board amended Regulations
D and Q to permit banking offices located in the United States to operate
International Banking Facilities (IBFs). As of December 31, 1985 data for IBFs
are reported in a separate column. These data are either included in or excluded
from the total columns as indicated in the headings. The notation "n.a." indicates
Total
excluding
IBFs
California
76,054
40,760
All states2
148 Market value of securities held
149 Immediately available funds with a maturity greater than
one day included in other borrowed money
New York
1,171
n.a.
t
653
California
Illinois
Total
including
IBFs
IBFs
only
Total
including
IBFs
7,359
3,616
1,542
1,338
556
n.a.
24,317
126
n.a.
3,611
54
n.a.
IBFs
only
that no IBF data re 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 agencyu report, available through
the G . l l statistical release, gross balances were included in total assets and total
liabilities. Therefopre, total asset and total liability figures in this table are not
comparable to those in the G.ll 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.
A 88
Federal Reserve Board of Governors
ALAN GREENSPAN, Chairman
MANUEL H . JOHNSON, Vice Chairman
MARTHA R . SEGER
WAYNE D . ANGELL
OFFICE OF BOARD
DIVISION
MEMBERS
JOSEPH R. COYNE, Assistant
DONALD J. WINN, Assistant
to the Board
to the Board
BOB STAHLY MOORE, Special Assistant to the Board
LEGAL
DIVISION
J. VIRGIL MATTINGLY, JR., General
Counsel
RICHARD M. ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
RLCKI R. TIGERT, Associate General Counsel
SCOTT G. ALVAREZ, Assistant General Counsel
MARYELLEN A. BROWN, Assistant to the General Counsel
OF INTERNATIONAL
EDWIN M. TRUMAN, Staff
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
DIVISION
OF RESEARCH
WILLIAM W . WILES,
Secretary
Secretary
Secretary
DIVISION OF CONSUMER
AND COMMUNITY
AFFAIRS
GRIFFITH L . GARWOOD,
STATISTICS
Director
MARTHA BETHEA, Deputy Associate Director
PETER A. TINSLEY, Deputy Associate Director
MYRON L. KWAST, Assistant
Director
SUSAN J. LEPPER, Assistant
Director
PATRICK M. PARKINSON, Assistant
Director
MARTHA S. SCANLON, Assistant
Director
DAVID J. STOCKTON, Assistant
Director
JOYCE K. ZICKLER, Assistant
Director
LEVON H. GARABEDIAN, Assistant
Director
(Administration)
Director
GLENN E. LONEY, Assistant
Director
ELLEN MALAND, Assistant
Director
DOLORES S. SMITH, Assistant
Director
DIVISION
OF MONETARY
DONALD L . KOHN,
DIVISION OF BANKING
SUPERVISION AND
REGULATION
WILLIAM TAYLOR, Staff
AND
EDWARD C. ETTIN, Deputy
Director
THOMAS D. SIMPSON, Associate
Director
LAWRENCE SLIFMAN, Associate
Director
SECRETARY
JENNIFER J. JOHNSON, Associate
BARBARA R. LOWREY, Associate
Director
LARRY J. PROMISEL, Senior Associate Director
CHARLES J. SLEGMAN, Senior Associate Director
DAVID H. HOWARD, Deputy Associate Director
MICHAEL J. PRELL,
OFFICE OF THE
FINANCE
AFFAIRS
Director
DAVID E. LINDSEY, Deputy
Director
BRIAN F. MADIGAN, Assistant
Director
RICHARD D. PORTER, Assistant
Director
NORMAND R.V. BERNARD, Special Assistant to the Board
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
ROGER T. COLE, 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
OFFICE OF THE INSPECTOR
BRENT L. BOWEN, Inspector
GENERAL
General
BARRY R. SNYDER, Assistant Inspector General
A 89
and Official Staff
EDWARD W . KELLEY, JR.
JOHN P. LA WARE
OFFICE OF
STAFF DIRECTOR
FOR
S. DAVID FROST, Staff
OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK
ACTIVITIES
MANAGEMENT
Director
EDWARD T. MULRENIN, Assistant Staff Director
PORTIA W. THOMPSON, Equal Employment Opportunity
Programs Officer
DIVISION OF HUMAN
MANAGEMENT
DAVID L . SHANNON,
CLYDE H . FARNSWORTH, JR.,
CONTROLLER
Controller
STEPHEN J. CLARK, Assistant Controller (Programs and
Budgets)
DARRELL R. PAULEY, Assistant Controller (Finance)
OF SUPPORT
ROBERT E . FRAZIER,
SERVICES
Director
GEORGE M. LOPEZ, Assistant
DAVID L. WILLIAMS, Assistant
Director
Director
OFFICE OF THE EXECUTIVE
INFORMATION RESOURCES
ALLEN E. BEUTEL, Executive
DIRECTOR FOR
MANAGEMENT
Director
STEPHEN R. MALPHRUS, Deputy Executive Director
DIVISION
SYSTEMS
OF HARDWARE
BRUCE M . BEARDSLEY,
AND
SOFTWARE
Director
THOMAS C. JUDD, Assistant
Director
ELIZABETH B. RIGGS, Assistant
Director
ROBERT J. ZEMEL, Assistant
Director
DIVISION OF APPLICATIONS
STATISTICAL
SERVICES
WILLIAM R . JONES,
RESERVE
DEVELOPMENT
Director
DAY W. RADEBAUGH, Assistant Director
RICHARD C. STEVENS, Assistant
Director
http://fraser.stlouisfed.org/
PATRICIA
A.St.
WELCH,
Director
Federal Reserve
Bank of
Louis Assistant
Director
DAVID L. ROBINSON, Associate
Director
C. WILLIAM SCHLEICHER, JR., Associate
Director
BRUCE J. SUMMERS, Associate
Director
CHARLES W. BENNETT, Assistant
Director
JACK DENNIS, JR., Assistant
Director
EARL G. HAMILTON, Assistant
Director
JOHN H. PARRISH, Assistant
Director
LOUISE L. ROSEMAN, Assistant
Director
FLORENCE M. YOUNG, Assistant
Director
Director
GEORGE E . LIVINGSTON,
DIVISION
DIVISION OF FEDERAL
BANK
OPERATIONS
Director
RESOURCES
JOHN R. WEIS, Associate
Director
ANTHONY V. DLGLOIA, Assistant
Director
JOSEPH H. HAYES, JR., Assistant
Director
FRED HOROWITZ, Assistant
Director
OFFICE OF THE
THEODORE E. ALLISON, Staff
AND
90
Federal Reserve Bulletin • August 1989
Federal Open Market Committee
FEDERAL
OPEN MARKET
COMMITTEE
MEMBERS
ALAN GREENSPAN, Chairman
WAYNE D . ANGELL
ROGER GUFFEY
MANUEL H . JOHNSON
E. GERALD CORRIGAN, Vice
SILAS KEEHN
EDWARD W . KELLEY, JR.
JOHN P. LA WARE
ALTERNATE
EDWARD G . BOEHNE
ROBERT H . BOYKIN
Chairman
THOMAS C . MELZER
MARTHA R . SEGER
RICHARD F . SYRON
MEMBERS
W . LEE HOSKINS
JAMES H . OLTMAN
GARY H . STERN
STAFF
DONALD L. KOHN, Secretary and Economist
NORMAND R.V. BERNARD, Assistant
Secretary
GARY P. GILLUM, Deputy Assistant Secretary
J. VIRGIL MATTINGLY, JR., General
Counsel
ERNEST T. PATRIKIS, Deputy General Counsel
MICHAEL J. PRELL,
EDWIN M . TRUMAN,
Economist
Economist
ANATOL B. BALBACH, Associate
Economist
RICHARD G. DAVIS, Associate
Economist
THOMAS E. DAVIS, Associate
Economist
DAVID E. LLNDSEY, Associate
Economist
ALICIA H. MUNNELL, Associate
Economist
LARRY J. PROMISEL, Associate
Economist
KARL A. SCHELD, Associate
Economist
CHARLES J. SLEGMAN, Associate
Economist
THOMAS D. SIMPSON, Associate
Economist
LAWRENCE SLIFMAN, Associate
Economist
PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account
SAM Y. CROSS, Manager for Foreign Operations, System Open Market Account
FEDERAL
ADVISORY
COUNCIL
DONALD N . BRANDIN,
President
SAMUEL A. McCULLOUGH, Vice President
THOMAS H. O'BRIEN, Fourth District
B. KENNETH WEST, Seventh District
DONALD N. BRANDIN, Eighth District
LLOYD P. JOHNSON, Ninth District
JORDAN L. HAINES, Tenth District
FREDERICK DEANE, JR., Fifth District
JAMES E. BURT III, Eleventh District
KENNETH L. ROBERTS, Sixth District
PAUL HAZEN, Twelfth District
J. TERRENCE MURRAY, First District
WILLARD C. BUTCHER, Second District
SAMUEL A. MCCULLOUGH, Third District
HERBERT V . PROCHNOW,
WILLIAM J. KORSVIK, Associate
Secretary
Secretary
A91
and Advisory Councils
CONSUMER
ADVISORY
COUNCIL
JUDITH N. BROWN, Edina, Minnesota, Chairman
WILLIAM E. ODOM, Dearborn, Michigan, Vice Chairman
NAOMI G. ALBANESE, Greensboro, North Carolina
GEORGE H. BRAASCH, Chicago, Illinois
BETTY TOM CHU, Arcadia, California
CLIFF E. COOK, Tacoma, Washington
JERRY D. CRAFT, Atlanta, Georgia
DONALD C. DAY, Boston, Massachusetts
R.B.(JOE) DEAN, JR., Columbia, South Carolina
RICHARD B. DOBY, Denver, Colorado
ROBERT A . HESS, W a s h i n g t o n , D . C .
WILLIAM C . DUNKELBERG, P h i l a d e l p h i a , P e n n s y l v a n i a
RICHARD H . FINK, W a s h i n g t o n , D . C .
JAMES FLETCHER, C h i c a g o , Illinois
STEPHEN GARDNER, D a l l a s , T e x a s
VINCENT P. QUAYLE, Baltimore, Maryland
ELENA G. HANGGI, Little Rock, Arkansas
JAMES HEAD, Berkeley, California
THRIFT INSTITUTIONS
ADVISORY
RAMON E. JOHNSON, Salt Lake City, Utah
BARBARA KAUFMAN, San Francisco, California
A. J. (JACK) KING, Kalispell, Montana
MICHELLE S . MEIER, W a s h i n g t o n , D . C .
RICHARD L. D. MORSE, Manhattan, Kansas
LINDA K. PAGE, Columbus, Ohio
SANDRA PHILLIPS, P i t t s b u r g h , P e n n s y l v a n i a
CLIFFORD N . ROSENTHAL, N e w Y o r k , N e w Y o r k
ALAN M . SILBERSTEIN, N e w Y o r k , N e w Y o r k
RALPH E. SPURGIN, Columbus, Ohio
DAVID P. WARD, Peapack, New Jersey
LAWRENCE WINTHROP, P o r t l a n d , O r e g o n
COUNCIL
GERALD M. CZARNECKI, Honolulu, Hawaii, President
DONALD B. SHACKELFORD, Columbus, Ohio, Vice President
CHARLOTTE CHAMBERLAIN, G l e n d a l e , California
JOE C. MORRIS, Overland Park, Kansas
ROBERT S. DUNCAN, Hattiesburg, Mississippi
ADAM A. JAHNS, Chicago, Illinois
H. C. KLEIN, Jacksonville, Arkansas
PHILIP E. LAMB, Springfield, Massachusetts
JOSEPH W . MOSMILLER, B a l t i m o r e , M a r y l a n d
Louis H. PEPPER, Seattle, Washington
MARION O. SANDLER, Oakland, California
CHARLES B. STUZIN, Miami, Florida
A 92
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A93
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STAFF STUDIES: Summaries Only Printed in the
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154. THE EFFECTS ON CONSUMERS AND CREDITORS OF
PROPOSED CEILINGS ON CREDIT CARD INTEREST
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155. THE FUNDING OF PRIVATE PENSION PLANS, b y M a r k J.
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ING MARKETS, by James V. Houpt. May 1988. 47 pp.
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Stephen A. Rhoades. April 1986. 32 pp.
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Foreign Experience with Targets for Money Growth.
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A Financial Perspective on Agriculture. 1/84.
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Bank Lending to Developing Countries. 10/84.
Survey of Consumer Finances, 1983: A Second Report.
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Union Settlements and Aggregate Wage Behavior in the
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The Thrift Industry in Transition. 3/85.
A Revision of the Index of Industrial Production. 7/85.
Financial Innovation and Deregulation in Foreign Industrial
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Recent Developments in the Bankers Acceptance Market.
1/86.
The Use of Cash and Transaction Accounts by American
Families. 2/86.
Financial Characteristics of High-Income Families. 3/86.
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.
Measuring the Foreign-Exchange Value of the Dollar. 6/87.
Changes in Consumer Installment Debt: Evidence from the
1983 and 1986 Surveys of Consumer Finances. 10/87.
Home Equity Lines of Credit. 6/88.
U.S. International Transactions in 1988. 5/89.
A 94
Index to Statistical Tables
References are to pages A3-A87 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 19, 20, 87
Assets and liabilities (See also Foreigners)
Banks, by classes, 18-20, 72-83
Domestic finance companies, 36
Federal Reserve Banks, 10
Financial institutions, 26
Foreign banks, U.S. branches and agencies, 21, 84-87
Automobiles
Consumer installment credit, 39, 40
Production, 49, 50
BANKERS acceptances, 9, 23, 24
Bankers balances, 18-20, 72, 74, 76, 78, 80, 82. (See also
Foreigners)
Bonds (See also U.S. government securities)
New issues, 34
Rates, 24
Branch banks, 21, 57, 84-87
Business activity, nonfinancial, 46
Business expenditures on new plant and equipment, 35
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 48
Capital accounts
Banks, by classes, 18, 73, 75, 77, 79, 81, 83
Federal Reserve Banks, 10
Central banks, discount rates, 69
Certificates of deposit, 24
Commercial and industrial loans
Commercial banks, 16, 19, 72, 74, 76, 78, 80, 82, 84-85
Weekly reporting banks, 19-21
Commercial banks
Assets and liabilities, 18-20
Commercial and industrial loans, 16, 18, 19, 20, 21, 72,
74, 76, 78, 80, 82
Consumer loans held, by type, and terms, 39, 40
Loans sold outright, 19
Nondeposit funds, 17
Number by classes, 73, 75, 77, 79, 81, 83
Real estate mortgages held, by holder and property, 38
Time and savings deposits, 3
Commercial paper, 23, 24, 36
Condition statements (See Assets and liabilities)
Construction, 46, 51
Consumer installment credit, 39, 40
Consumer prices, 46, 48
Consumption expenditures, 53, 54
Corporations
Nonfinancial, assets and liabilities, 35
Profits and their distribution, 35
Security issues, 34, 67
Cost of living (See Consumer prices)
Credit unions, 26, 39. (See also Thrift institutions)
Currency and coin, 18, 72, 74, 76, 78, 80, 82
Currency in circulation, 4, 13
Customer credit, stock market, 25
DEBITS to deposit accounts, 15
Debt (See specific types of debt or securities)
Demand deposits
Banks, by classes, 18-21, 73, 75, 77, 79, 81, 83
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, 73, 75, 77, 79, 81, 83
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, 47
Eurodollars, 24
FARM mortgage loans, 38
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, 37, 38
Federal Housing Administration, 33, 37, 38
Federal Land Banks, 38
Federal National Mortgage Association, 33, 37, 38
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, 36
Business credit, 36
Loans, 39, 40
Paper, 23, 24
Financial institutions
Loans to, 19, 20, 21
Selected assets and liabilities, 26
Float, 4
Flow of funds, 41, 43, 44, 45
Foreign banks, assets and liabilities of U.S. branches and
agencies, 21, 84-87
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4, 10, 19, 20
Foreign exchange rates, 70
Foreign trade, 56
Foreigners
Claims on, 57, 59, 62, 63, 64, 66
Liabilities to, 20, 56, 57, 59, 60, 65, 67, 68
A 95
GOLD
Certificate account, 10
Stock, 4, 56
Government National Mortgage Association, 33, 37, 38
Gross national product, 53
HOUSING, new and existing units, 51
INCOME, personal and national, 46, 53, 54
Industrial production, 46, 49
Installment loans, 39, 40
Insurance companies, 26, 30, 38
Interest rates
Bonds, 24
Consumer installment credit, 40
Federal Reserve Banks, 7
Foreign central banks and foreign countries, 69
Money and capital markets, 24
Mortgages, 37
Prime rate, 23
International capital transactions of United States, 55-69
International organizations, 59, 60, 62, 65, 66
Inventories, 53
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, 38, 72, 78
Federal Reserve Banks, 10, 11
Financial institutions, 26, 38
LABOR force, 47
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 18—20
Commercial banks, 3, 16, 18-20, 72, 74, 76, 78, 80, 83
Federal Reserve Banks, 4, 5, 7, 10, 11
Financial institutions, 26, 38
Insured or guaranteed by United States, 37, 38
MANUFACTURING
Capacity utilization, 48
Production, 48, 50
Margin requirements, 25
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 6
Reserve requirements, 8
Mining production, 50
Mobile homes shipped, 51
Monetary and credit aggregates, 3, 12
Money and capital market rates, 24
Money stock measures and components, 3, 13
Mortgages {See Real estate loans)
Mutual funds, 35
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 29
National income, 53
OPEN market transactions, 9
PERSONAL income, 54
Prices
Consumer and producer, 46, 52
Stock market, 25
Prime rate, 23
Producer prices, 46, 52
Production, 46, 49
Profits, corporate, 35
REAL estate loans
Banks, by classes, 16, 19, 20, 38, 74
Financial institutions, 26
Real estate loans—Continued
Terms, yields, and activity, 37
Type of holder and property mortgaged, 38
Repurchase agreements, 6, 17, 19, 20, 21
Reserve requirements, 8
Reserves
Commercial banks, 18, 73, 79
Depository institutions, 3, 4, 5, 12
Federal Reserve Banks, 10
U.S. reserve assets, 56
Residential mortgage loans, 37
Retail credit and retail sales, 39, 40, 46
SAVING
Flow of funds, 41, 43, 44, 45
National income accounts, 53
Savings and loan associations, 26, 38, 39, 41. (See also
Thrift institutions)
Savings banks, 26, 38, 39
Savings deposits (See Time and savings deposits)
Securities (See also specific types)
Federal and federally sponsored credit agencies, 33
Foreign transactions, 67
New issues, 34
Prices, 25
Special drawing rights, 4, 10, 55, 56
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, 73, 75,
77, 79, 81, 83
Trade, foreign, 56
Treasury cash, Treasury currency, 4
Treasury deposits, 4, 10, 28
Treasury operating balance, 28
UNEMPLOYMENT, 47
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, 72, 74, 76, 78, 80, 82
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 4, 10, 11, 30
Foreign and international holdings and transactions, 10,
30, 68
Open market transactions, 9
Outstanding, by type and holder, 26, 30
Rates, 24
U.S. international transactions, 55-69
Utilities, production, 50
VETERANS Administration, 37, 38
WEEKLY reporting banks, 19-21
Wholesale (producer) prices, 46, 52
YIELDS (See Interest rates)
A 96
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
George N. Hatsopoulos
Richard N. Cooper
Richard F. Syron
Robert W. Eisenmenger
NEW YORK*
10045
Cyrus R. Vance
Ellen V. Futter
Mary Ann Lambertsen
E. Gerald Corrigan
James H. Oltman
Buffalo
14240
John T. Keane
PHILADELPHIA
19105
Peter A. Benoliel
Gunnar E. Sarsten
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101
Charles W. Parry
John R. Miller
Owen B. Butler
James E. Haas
W. Lee Hoskins
William H. Hendricks
Hanne Merriman
Leroy T. Canoles, Jr.
Thomas R. Shelton
William E. Masters
Robert P. Black
Jimmie R. Monhollon
Bradley Currey, Jr.
Larry L. Prince
Nelda P. Stephenson
Winnie F. Taylor
Jose L. Saumat
Patsy R. Williams
James A. Hefner
Robert P. Forrestal
Jack Guynn
Robert J. Day
Marcus Alexis
Richard T. Lindgren
Silas Keehn
Daniel M. Doyle
Robert L. Virgil, Jr.
H. Edwin Trusheim
L. Dickson Flake
Thomas A. Alvey
Seymour B. Johnson
Thomas C. Melzer
James R. Bowen
Michael W. Wright
John A. Rollwagen
Warren H. Ross
Gary H. Stern
Thomas E. Gainor
Fred W. Lyons, Jr.
Burton A. Dole, Jr.
James C. Wilson
Patience S. Latting
Kenneth L. Morrison
Roger Guffey
Henry R. Czerwinski
Bobby R. Inman
Hugh G. Robinson
Diana S. Natalicio
Andrew L. Jefferson, Jr.
Lawrence E. Jenkins
Robert H. Boykin
William H.Wallace
Robert F. Erburu
Carolyn S. Chambers
Yvonne B. Burke
Paul E. Bragdon
Don M. Wheeler
Carol A. Nygren
Robert T. Parry
Carl E. Powell
Cincinnati
Pittsburgh
45201
15230
RICHMOND*
23219
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30303
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75222
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Vice President
in charge of branch
Charles A. Cerino1
Harold J. Swart1
Robert D. McTeer, Jr.1
Albert D. Tinkelenberg1
John G. Stoides1
Delmar Harrison1
Fred R. Herr1
James D. Hawkins1
James Curry III
Donald E. Nelson
Robert J. Musso
Roby L. Sloan1
John F. Breen1
Howard Wells
Ray Laurence
Robert F. McNellis
Kent M. Scott
David J. France
Harold L. Shewmaker
Tony J. Salvaggio1
Sammie C. Clay
Robert Smith, III1
Thomas H. Robertson
John F. Hoover1
Thomas C. Warren2
Angelo S. Carella1
E. Ronald Liggett1
Gerald R. Kelly1
*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 060%; 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.
1. Senior Vice President.
2. Executive Vice President.
A 97
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
April 1984
LEGEND
—— Boundaries of Federal Reserve Districts
Boundaries of Federal Reserve Branch
Territories
®
Federal Reserve Bank Cities
*
Federal Reserve Branch Cities
Federal Reserve Bank Facility
Q
Board of Governors of the Federal Reserve
System
Publications of Interest
NEW HANDBOOK AVAILABLE
REGULATORY
SERVICE
FROM THE
The Federal Reserve Board has announced publication of The Payment System Handbook. The new
handbook, which is part of the Federal Reserve Regulatory Service, deals with expedited funds availability, check collection, wire transfers, and risk-reduction policy. It includes Regulation CC (Availability of
Funds and Collection of Checks), Regulation J (Collection of Checks and Other Items and Wire Transfers
of Funds by Federal Reserve Banks), the Expedited
Funds Availability Act and related statutes, official
Board commentary on Regulation CC, and policy
statements on risk reduction in the payment system. In
addition, it contains detailed subject and citation indexes. It is published in loose-leaf binder form and is
updated monthly.
To promote public understanding of its regulatory
functions, the Board publishes the Federal Reserve
Regulatory Service, a three-volume loose-leaf 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, consumer affairs, and, available for the first time in September 1988, The Payment
System Handbook.
For domestic subscribers, the annual rate for The
Payment System Handbook is $75. For subscribers
outside the United States, the price, including additional air mail costs, is $90. For the Federal Reserve
Regulatory Service, not including handbooks, the annual rate is $200 for domestic subscribers and $250 for
subscribers outside the United States. All subscription
requests must be accompanied by a check payable to
"Board of Governors of the Federal Reserve
System." Orders should be addressed to Publications
Services, Mail Stop 138, Board of Governors of the
Federal Reserve System, 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 resolve a billing error.
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 credit.
A Consumer'!,
Guide to
xsr
Three booklets on the mortgage process are also
available: A Consumer's Guide to Mortgage Refinancing, A Consumer's Guide to Mortgage Lock-Ins, and
A Consumer's Guide to Mortgage Closings. These
booklets were prepared in conjunction with the Federal Home Loan Bank Board and in consultation with
other federal agencies and trade and consumer
groups.
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.
A Cji.nsumiT's
Guidr 10
Mortgage
Refinancing
A Consumer'!
Guide to
Mortgage
Lock-Ins
@FedFRASER