Full text of Federal Reserve Bulletin : December 1982
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VOLUME 68 •
NUMBER 12 •
DECEMBER 1982
FEDERAL RESERVE
Board of Governors of the Federal Reserve System
Washington, D.C.
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • Stephen H. Axilrod • Michael Bradfield
John M. Denkler • Griffith L. Garwood • James L. Kichiine • Edwin M. Truman
Naomi P. Salus, Coordinator
The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Unit headed by Mendelle T. Berenson,
the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Helen L. Hulen.
Table of Contents
725
THRIFT INSTITUTIONS
YEARS
IN
Savings and loan associations and mutual
savings banks have experienced severe
earnings problems over the past three
years, but the lower level of interest rates,
coupled with various regulatory and statutory changes, should improve the outlook
for these institutions.
739
company, before the Senate Committee on
Banking, Housing, and Urban Affairs, December 10, 1982.
RECENT
755
Change in the discount rate.
Revision of fee schedule for automated
clearinghouse services.
New members of the Consumer Advisory
Council.
TREASUR Y-FOREIGN
EXCHANGE
OPERATIONS: INTERIM
REPORT
Amendments to Regulation D to make certain time deposits subject to the reserve
requirements that apply to transaction accounts and to coordinate the end of the
phase-in of reserve requirements for member banks with the start of contemporaneous reserve accounting.
At the end of the period from August to
October 1982, the dollar had risen to record
highs, or to levels not seen in many years,
against several major currencies.
745
INDUSTRIAL
PRODUCTION
Changes in rules to implement legislation
affecting reserve requirements and availability of negotiable order of withdrawal
accounts.
Output declined about 0.4 percent in November.
747
STATEMENTS
TO
CONGRESS
Proposed application of some banking organizations to establish an office in New York
City to provide certain services in connection with foreign exchange operations.
Paul A. Volcker, Chairman, Board of Governors, discusses the current stance of monetary policy and some problems for the
future and says that the broad framework of
monetary targeting has been retained, but
greater emphasis is being placed for the
time being on the broader aggregates; also,
a policy of trying to achieve a particular
interest rate target would have several defects and would be interpreted as inflationary, before the Joint Economic Committee
of the U.S. Congress, November 24, 1982.
753 J. Charles Partee, Member, Board of Governors, discusses the Federal Reserve's involvement with the Penn Square Bank in
the context of the Federal Reserve's role as
lender of last resort and regulator of the
Penn Square Bank's parent bank holding
ANNOUNCEMENTS
Publication of pamphlet, "Processing Bank
Holding Company and Merger Applications."
Amendment to Regulation T to specify the
characteristics of private mortgage passthrough securities that may be used as
collateral for margin credit.
Admission of four state banks to membership in the Federal Reserve System.
761
RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET
COMMITTEE
At its meeting on October 5, 1982, the
Committee agreed that, in all the circum-
stances, it would seek to maintain expansion in bank reserves needed for an orderly
and sustained flow of money and credit,
consistent with growth of M2 (and M3) from
September to December at an annual rate in
a range of around 8V2 to 9Vz percent, and
taking account of the desirability of somewhat reduced pressures in private credit
markets in the light of current economic
conditions. Growth of M2 from the fourth
quarter of 1981 to the fourth quarter of 1982
might be somewhat above the range for the
year that the Committee had reaffirmed in
July; the Committee had also agreed then
that for a time it would tolerate growth
somewhat above the target range, in the
event of unusual precautionary demands for
money and liquidity, and that such growth
would be consistent with longer-term objectives. Recent and prospective market and
economic conditions appeared consistent
with that approach. Somewhat slower
growth over the period from September to
December, bringing those aggregates
around the upper part of the ranges for the
year ending in the fourth quarter of 1982,
would be acceptable and desirable in a
context of declining interest rates. Should
economic and financial uncertainties lead to
still stronger liquidity demands, somewhat
more rapid growth in the broader aggregates would be tolerated. The intermeeting
range for the federal funds rate, which
provides a mechanism for initiating further
consultation of the Committee, was set at 7
to 10V2 percent.
767
LEGAL
DEVELOPMENTS
Amendments to Regulations D, K, and O;
various rules and bank holding company
and bank merger orders; and pending cases.
A1
FINANCIAL
AND BUSINESS
STATISTICS
A3 Domestic Financial Statistics
A46 Domestic Nonfinancial Statistics
A54 International Statistics
A 6 9 GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND
SPECIAL
TABLES
A 7 0 BOARD
OF GOVERNORS
A 7 2 FEDERAL OPEN MARKET
AND STAFF; ADVISORY
AND
STAFF
COMMITTEE
COUNCILS
A 7 3 FEDERAL RESERVE
BANKS,
BRANCHES,
AND OFFICES
A 7 4 FEDERAL RESERVE
PUBLICATIONS
BOARD
A 7 9 INDEX
TO STATISTICAL
A81 INDEX
TO VOLUME
A97 MAP OF FEDERAL
TABLES
68
RESERVE
SYSTEM
Thrift Institutions in Recent Years
Michael J. Moran of the Board's Division of
Research and Statistics prepared this article.
The financial condition of savings and loan associations and mutual savings banks has always
been highly sensitive to fluctuations in market
interest rates. Changes through the years in asset
and liability powers have altered the impact of
interest rates on thrift institutions, but they have
not eliminated the basic sensitivity to movements in market rates. Regulatory and statutory
changes that will limit the exposure of savings
and loans and mutual savings banks to interest
rate risk have been made over the past two
years. However, time to adjust is needed before
the industry becomes reasonably well insulated
from the vicissitudes of the interest rate cycle.
At times during the 1960s and 1970s, market
interest rates rose well above the level that thrift
institutions were allowed to pay on their deposits, resulting in weak deposit growth as savers
shifted their funds to higher-yielding assets elsewhere. These periods of disintermediation were
associated primarily with reductions in the liquidity position of thrift institutions, although
their net income also declined somewhat. In
1978, commercial banks and thrift institutions
were authorized to issue deposit accounts whose
interest rate ceilings were tied to the prevailing
return on Treasury securities. These accounts
allowed thrift institutions to remain competitive
in the market for savings even when interest
rates rose. However, as market-rate deposits
grew in importance, earnings became much more
volatile because the cost of funds tended to
change more rapidly than the return on the
longer-term assets held by thrift institutions. As
interest rates rose to record levels beginning in
1980, the earnings of savings and loan associations and mutual savings banks deteriorated. In
1981 and 1982, large losses and a declining capital base forced many of these institutions to be
merged out of existence.
A number of measures have been implemented
in the last two years to address the difficult
situation caused by the erosion of thrift earnings.
Some of these measures simply involve adjustments to accounting methods while others attempt to remedy the underlying causes of the
earnings problem. Many of the policies and procedures adopted by the thrift industry run
counter to traditional financial practices, and
some involve a fundamental restructuring of the
industry. Thus they have stirred considerable
controversy. The Congress also has taken steps
to assist thrift institutions. The most recent action, and perhaps the most significant, was the
passage of the Garn-St Germain Depository Institutions Act of 1982. This act affords the regulatory agencies and insurance funds greater latitude in dealing with financially weak institutions
and gives the thrift industry new powers that will
foster their viability over the long run.
The pressure on the earnings of thrift institutions has begun to subside in recent months with
the sharp fall in interest rates. In the absence of a
rebound in interest rates, the industry could
return to profitability in 1983. However, the
outlook for savings and loan associations and
mutual savings banks will be influenced by factors other than interest rates. For example, all
depository institutions will have to absorb an
increase in interest expense next year as a large
volume of low-yielding passbook savings deposits is expected to shift to the new "money market
deposit account" authorized by the Garn-St
Germain act and the "super NOW" account
authorized by the Depository Institutions Deregulation Committee.
This article first reviews the earnings experience of thrift institutions over the past three
years and analyzes the factors that influence net
income. It then discusses the policies that have
been adopted to assist troubled thrift institutions
and the controversies that have surrounded
them.
726
Federal Reserve Bulletin • December 1982
THE RECENT EARNINGS
OF THRIFT
INSTITUTIONS
PERFORMANCE
2. Ratio of net worth to total assets at thrift
institutions
Percent
The deterioration in the earnings of thrift institutions began in 1980, when savings and loan
associations posted only a small profit and mutual savings banks recorded their first loss in the
postwar period (table 1). Losses at thrift institutions increased throughout 1981 and totaled $6.0
billion for the year, or 0.75 percent of average
assets. In the first half of 1982, losses of savings
and loan associations increased slightly further
from the level in the latter part of 1981, while
earnings of mutual savings banks showed a small
improvement.
As the losses of thrift institutions have accumulated, the net-worth positions reported on
their balance sheets have been drawn down. This
erosion is especially marked at savings and
loans, where the combination of declining net
worth and continued expansion in assets has
pushed the ratio of net worth to total assets to 3 Vi
percent at the end of the third quarter (table 2).
These aggregated data do not reveal the large
number of institutions with critically low levels
of net worth that probably will require either
capital assistance from one of the federal deposit
insurance agencies or an arranged merger with a
stronger institution. At midyear 1982, for example, about 500 savings and loan associations,
1. Net income at thrift institutions
Amounts in billions of dollars; percentages at annual rates
1. Data for 1982 are for the end of September.
accounting for 16 percent of industry assets, had
ratios of net worth to assets below 2 percent—
roughly the minimum amount required by the
Federal Home Loan Bank Board. The capital
position of mutual savings banks is somewhat
stronger: not only is the aggregate ratio of net
worth to assets higher than at savings and loan
associations, but only eight institutions insured
by the Federal Deposit Insurance Corporation,
accounting for 1XA percent of total assets, had
net-worth ratios below 2 percent.
Factors
Influencing
Earnings
The underlying causes of the earnings squeeze in
the thrift industry are the changing nature of the
liabilities held by thrift institutions and the unprecedented movements in interest rates. Specifically, over the last several years the liabilities
issued by thrift institutions have moved to current market rates more rapidly than have the
assets held in their portfolios. This movement,
combined with the sharp rise in interest rates,
has pushed the average cost of funds above the
average return on assets (chart 1). The divergence between the average cost of funds and the
average return on assets was possible because
the liabilities of thrift institutions had much
shorter maturities than their assets, and thus
could be converted to current market rates more
quickly. The faster pace of deregulation on the
liability side of the thrift industry's balance
sheet, and the portfolio decisions of the institutions themselves, contributed to the mismatch
between the maturities of assets and liabilities
and the acceleration in the average cost of funds.
Thrift Institutions in Recent Years
1. Interest income and expenses at
FSLIC-insured savings and loans
The reaction of thrift institution customers to
rising market interest rates also has played a role
in the recent earnings squeeze.
The Liabilities of Thrift Institutions. Before
1978, thrift institutions relied primarily on savings and small-denomination time deposits, with
fixed interest rate ceilings, to finance their large
holdings of long-term, fixed-rate mortgages (table 3). When market rates rose above the ceilings
on deposit rates, savers frequently withdrew
their funds from thrift institutions and invested
them in higher-yielding market instruments. Savings and loan associations and mutual savings
banks typically responded to this disintermediation by drawing down liquid assets and increasing their reliance on borrowed funds; both methods reduce an institution's liquidity position and
depress earnings somewhat.
In 1978 and 1979, the financial regulatory
agencies acted to limit the outflow of funds
during periods of rising market interest rates by
authorizing the six-month money market certificate and the 2'/2-year small saver certificate. The
interest rate ceilings on these accounts change
frequently and are tied to the returns on Treasury
securities of comparable maturity. Thus, as market rates increased in 1980 and 1981, the ceilings
on these deposit accounts also rose. Although
institutions can profitably reinvest new inflows
into these accounts, transfers from the existing
lower-rate accounts represent a pure cost increase not matched by a corresponding adjustment to the return on existing assets. As table 3
727
shows, savers have reduced significantly their
holdings of fixed-ceiling accounts, replacing
them with deposits paying market-related rates.
The poor earnings performance of thrift institutions over the past three years, however, cannot be attributed solely to the authorization of
these new deposit accounts. If savings and loan
associations and mutual savings banks had not
been allowed to issue these accounts, the movements in interest rates in recent years probably
would have caused massive deposit outflows and
generated serious liquidity and earnings problems as institutions sold liquid assets and turned
to borrowing at market rates. A more fundamental source of the earnings squeeze was an uneven
transformation of the asset and liability sides of
the balance sheet. The movement to liabilities
with market rates was started while most thrift
institutions were prohibited from issuing mortgages with adjustable rates and were limited with
respect to the types of nonmortgage loans they
could hold. If savings and loan associations and
mutual savings banks had been given several
years to restructure their asset portfolios toward
shorter-term or variable-rate instruments before
the deregulation of liabilities began, those institutions that took advantage of such opportunities
would have been in a better position to absorb
the rapid increases in interest expenses that
began in 1980.
The strategies for asset and liability management used by many thrift institutions also were
not well suited to the financial situation that took
shape in 1980. Conditioned by the relative stability of interest rates in earlier periods, the wide
spread between short- and long-term interest
rates that was evident before 1980, and certain
tax incentives for investment in mortgages, thrift
institutions continued to invest in longer-term
assets. Simultaneously, they deepened their reliance on short-term funds through the issuance of
large-denomination time deposits, advances
from the Federal Home Loan Banks, and other
types of borrowing. If they had invested more in
shorter-term assets (such as Treasury or agency
securities or federal funds), or issued more longer-term liabilities (such as mortgage-backed
bonds), earnings would have been stronger in
1981 and 1982.
728
Federal Reserve Bulletin • December 1982
3. Balance sheets of thrift institutions
Percent of total liabilities and assets
1980
; vi
p
Fixed ceiling liabilities
Passbook and NOW accounts
Fixed ceiling time deposits
Market ceiling small time deposits . .
Money market certificate
Small saver certificate
Other small time deposits
Discretionary liabilities
Large time deposits . . B . »
.P.. B . . . I
FHLB advances
Other borrowings
Other liabilities
Total liabilities . . . * . . . . .
Mortgage assets
Fixed rate . . .
Adjustable rate
Nonmortgage loans
Cash and nonmortgage investments
Other assets
Total assets
1982"
Savings and loan associations
22.0
15.6
6.4
52.8
28.6
19.3
4.9
23.2
33.9
53.4
Fixed ceiling liabilities
Passbook and NOW accounts
Fixed ceiling time deposits
Market ceiling small time deposits
Money market certificate
Small saver certificate
Other small time deposits
Discretionary liabilities
Large time deposits . .
FHLB advances
J
Other borrowings
Other liabilities
Total liabilities
Mortgage assets
Nonmortgage loans
Cash and nonmortgage investments . .
Other assets
Total assets
^^KiiiHI
8.1
100.0
100.0
100.0
10.5
4.6
2.0
100.0
81.1
74.9
84.4
80.3
n.a.
6.2
2.6
11.2
2.5
100.0
100.0
Mutual savings banks
52.2
40.2
33.7
18.5
100
23.9
100.0
100.0
40.8
29.8
5.1
100.0
100.0
100.0
36.1
29.0
7.1
52.6
31.9
15.9
4.8
8.3
3.2
1.5
3.6
3.0
100.0
66.3
6.8
23.9
3.0
100.0
64.8
8.4
23.6
3.2
100.0
63.1
9.4
23.6
3.9
100.0
1. Data for 1982 are for the end of June.
The Customers of Thrift Institutions. The reactions of the industry's customers to high interest
rates have exacerbated the earnings problems.
For example, the slowdown in overall mortgage
activity as interest rates rose and the increasing
use of so-called creative financing in real estate
transactions have reduced the rate of mortgage
repayments. In the late 1970s, when housing
markets were more robust and mortgage rates
were lower, 14 to 16 percent of mortgages held by
savings and loan associations and 10 to 12 percent
of the mortgages held by mutual savings banks
generally were repaid each year. In an environment of secularly rising rates, this turnover helped
to raise interest income because low-rate mortgages could be replaced with higher-rate assets.
More recently, however, the repayment rate has
fallen to 6 to 8 percent, thereby retarding the
increase in asset returns (chart 2).
On the liability side of the balance sheet, the
reactions of the industry's customers to rising
interest rates and an expansion of investment
alternatives also have caused earnings to deteriorate. One obvious impact, already noted, is the
shift from lower-yielding passbook and fixedceiling time deposits to the newer accounts tied
to market rates (see table 3). A more subtle
impact is the gradual erosion over the past two
years in the core deposit base (that is, deposits
owned by households or smaller organizations).
Throughout 1981 and 1982, savings and smalldenomination time deposits at savings and loan
Thrift Institutions in Recent Years
2. Mortgage repayment rate at
FSLIC-insured savings and loans
729
4. Growth of savings and small time deposits at
commercial banks and thrift institutions
Percent change from December to December
associations and mutual savings banks have expanded at an exceptionally low rate and also
have weakened relative to the growth at commercial banks (table 4). Slower growth in the
retail deposit base at thrift institutions will further depress earnings because these institutions
must rely on more costly sources of funds, and
the acquisition of new assets—which could offset
some of the losses embedded in the existing
balance sheet—will be smaller than it would have
been otherwise.
One of the more important causes of the
erosion of the thrift deposit base in 1981 and 1982
has been the competition from money market
mutual funds. In previous periods of disintermediation, such as 1970-71 and 1973-75, thrift
institutions appeared to have been affected
somewhat more severely than commercial banks
(see table 4). Thus, if money market mutual
funds have grown at the expense of depository
institutions, some slowdown in thrift growth
both absolutely and relative to commercial banks
may be expected.
Another factor that has contributed to the
slowdown in deposit growth at savings and loans
and mutual savings banks is the loss of a rate
advantage on six-month money market certificates vis-a-vis commercial banks. When this
account was introduced in June 1978, thrift institutions were allowed to offer an interest rate that
was VA percentage point higher than the commercial bank rate. However, in March 1979, this
differential was made effective only at lower
levels of interest rates, and deposit growth at
1. Includes savings and loan associations and mutual savings
banks.
2. Deposit growth, at an annual rate, from December 1981 to
September 1982.
savings and loans and mutual savings banks
weakened considerably relative to that at commercial banks. Finally, a reluctance of savers to
hold funds in institutions experiencing earnings
difficulties may help explain the slow deposit
growth at savings and loans and mutual savings
banks.
Differences
in Thrift
Earnings
Although nearly all savings and loan associations
and mutual savings banks have experienced an
erosion in their net income, the performance has
varied widely among individual institutions, as
indicated by the data presented in table 5.
Among savings and loan associations, about 15
percent of all institutions (accounting for slightly
more than 10 percent of total assets) had positive
income in the first half of 1982. At the opposite
end of the distribution, about one-fourth of all
institutions (accounting for slightly more than 20
percent of total assets) had a ratio of net income
to average assets of - 1 . 5 percent or less. A much
larger proportion of mutual savings banks reported positive earnings, and the proportion of such
institutions with very low net income was smaller than it was for savings and loan associations.
Several factors explain the better earnings
performance of some thrift institutions, including
730
Federal Reserve Bulletin • December 1982
5. Number, assets, and net-worth ratios of thrift
institutions, by ratio of net income to average
assets, first half of 1982
1. FSLIC-insured savings and loan associations.
2. FDIC-insured mutual savings banks.
a wider diversification on the asset side of the
balance sheet, a more rapid rate of deposit
growth so that a greater proportion of assets
were acquired at higher interest rates, and relatively larger volumes of low-cost passbook savings deposits. In addition, newer thrift institutions, because they are not burdened with large
portfolios of low-yielding mortgages, generally
have reported positive earnings. Finally, location
has played a role: institutions in areas with a
more rapid rate of economic growth and more
active housing markets, or in states that did not
have mortgage usury ceilings, have tended to
fare somewhat better than the industry average.
The Near-Term
Outlook for the
Industry
In the near term, the primary factor likely to
influence the earnings of thrift institutions is the
level of short-term interest rates, which have
fallen substantially in recent months. Savings
and loan associations and mutual savings banks
hold a large volume of short-term, market-rate
liabilities that are maturing and being replaced
with cheaper sources of funds. On the asset side,
thrift institutions hold a much smaller volume of
short-term assets that are maturing and being
replaced with lower-yielding instruments. This
reduction in asset returns could even be offset by
the continued, albeit gradual, retirement of lowrate mortgages. Thus, if the lower level of shortterm interest rates is sustained, thrift institution
earnings will show a marked improvement as the
cost of funds declines in the face of a stable, or
perhaps a slightly rising, average return on assets. For the second half of 1982, the decline in
short-term interest rates should result in losses
that are about 50 percent of those in the first six
months. The performance of earnings may be
even better in 1983, but whether the industry
returns to profitability will depend upon other
factors as well.
Another important determinant of earnings at
thrift institutions in 1983 will be the composition
of deposits. If a large portion of lower-rate
passbook savings deposits and negotiable order
of withdrawal (NOW) accounts shifts to a market-rate deposit, the interest expenses of thrift
institutions will rise and earnings will be lower
than otherwise. Pursuant to the mandate of the
Congress, the Depository Institutions Deregulation Committee recently established a new deposit instrument that is designed to compete with
money market mutual funds, but also might
induce large transfers of funds from passbook
savings deposits. This new account has no interest rate ceiling or fixed maturity, and provides
for up to six third-party transfers per month. In
short, it has greater liquidity than savings deposits and allows institutions to pay a market interest rate. The only real constraint on transfers
from passbook savings deposits to this new account is a $2,500 minimum denomination, but
this requirement probably will exercise a limited
restraint: according to survey data gathered by
various trade associations, the bulk of savings
deposits—80 percent at savings and loan associations and 85 percent at mutual savings banks—
are held in accounts with balances in excess of
this minimum.
The Depository Institutions Deregulation
Committee also has authorized a "super NOW"
account that will be available in early January.
This account provides unlimited transactions and
has no interest rate ceiling if balances remain
above $2,500.
Thrift Institutions in Recent Years
731
6. Number and total assets of thrift institutions, by ratio of savings deposits to total deposits, June 1982
The precise impact of the new instruments on
the earnings of thrift institutions is difficult to
gauge at this early date because it will depend
upon the rates paid on the new accounts, the
amount of funds transferred internally (especially
from savings deposits), the volume of funds that
institutions can attract from market instruments,
and the profits that institutions earn on these new
funds. If interest rates stay at low levels and a
large volume of funds is attracted from market
instruments, the earnings impact will be damped;
with higher levels of interest rates and smaller
inflows of new funds, the earnings impact will be
more severe. Whatever the overall outcome,
mutual savings banks likely will suffer a relatively larger decline in earnings than savings and
loan associations because savings deposits account for a larger proportion of their liabilities.
At the end of September 1982, savings deposits
accounted for 31 percent of total deposits at
mutual savings banks, compared with 17 percent
at savings and loan associations. In addition,
more than two-thirds of all savings banks insured
by the FDIC (with 45 percent of total assets) had
more than 30 percent of their total deposits in
savings accounts (table 6). A relatively small
number of savings and loan associations have
more than 30 percent of their deposits in passbook accounts.
ACCOUNTING
SOLUTIONS
TO THE
EARNINGS AND NET-WORTH
PROBLEMS
Under current statutory and regulatory provisions, the primary determinant of an institution's
soundness is the book value of its net worth
relative to total assets or total liabilities. Histori
cally, when an institution fell below some critical
value of net worth for a substantial period,
supervisory action would be taken, including
liquidation or merger with a stronger institution.
If the Federal Savings and Loan Insurance Corporation had acted on the basis of traditional
capital-adequacy guidelines, however, the insurance fund probably would have been insufficient
to facilitate all of the mergers and liquidations
that have been necessary over the past two
years. Therefore, the FSLIC has adopted several
innovative approaches. One approach has simply
allowed institutions falling below their required
level of net worth to continue operating for
longer periods of time. In addition, both the
FHLBB and the FSLIC have adopted regulatory
changes that boost reported net worth, or the
ratio of net worth to total liabilities, above what
it otherwise would have been. These policies and
regulatory changes largely involve adjustments
to the balance sheet of a savings and loan association and do little to reduce an institution's
losses or to allow it to absorb losses in any real
way. Thus these policies represent "solutions"
in an accounting sense rather than in basic economic terms.
Although they provide little real benefit to an
institution, accounting solutions at least give the
federal insurance agencies flexibility in dealing
with the thrift industry's problems. The level of
net worth reported on an institution's balance
sheet, which insurers are forced to rely upon
heavily in judging viability, may not indicate
accurately the prospects for long-run profitability. For example, reported net worth does not
reflect the possibility that the earnings position
of many institutions will improve markedly if the
current low level of interest rates is sustained.
732
Federal Reserve Bulletin • December 1982
Thus accounting solutions may be viewed as
devices to extend the time before the FSLIC
must act and thus to give lower short-term interest rates or restructuring efforts by an institution's management a chance to improve its real
earnings. To the extent that mergers and liquidations are avoided with this approach, the cost to
the FSLIC is reduced.
Income
Capital
Certificates
One method to raise an institution's net worth, as
well as the ratio of net worth to total assets or
liabilities, is the issuance of income capital certificates, a new security developed by the FSLIC
and the FHLBB. These securities are issued by a
savings and loan association and are acquired by
the FSLIC in exchange for cash or interestbearing notes. Income capital certificates resemble preferred stock in that they have no fixed
maturity and carry a specified interest or dividend payment that is made only if the institution
has positive net income. With the increase in
assets from the FSLIC's cash or notes offset by
the issuance of an equity-type security rather
than debt, an institution's net worth increases.
The earnings impact of income capital certificates will be negligible because the income from
the FSLIC's note will be offset by the actual or
accrued payment on the income capital certificates. (An article by Douglas P. Faucett and
Richard K. Kneipper in the Federal Home Loan
Bank Board Journal for October 1981 discusses
these certificates in detail.)
Income capital certificates allow an institution
that has fallen below its net-worth requirement,
but has a reasonable prospect of recovery in the
long run, to remain in business rather than to
become subject to supervisory action. The advantages to the regulators include limited cash
outlays—the only outlays are the semiannual
interest payments if the ICC is purchased with an
FSLIC note-^-and the recovery of its investment
if the institution survives. In the event of failure,
however, the ICC represents an increased commitment by the insurance agency and may add to
the costs of merger or liquidation.
Thus far the FSLIC has purchased only a
moderate amount of income capital certificates
to facilitate mergers of savings and loan associations, but the use of this instrument—or one
similar to it—could increase sharply in the near
future. One of the major provisions of the GarnSt Germain Depository Institutions Act was the
authorization for the FSLIC and FDIC to provide capital assistance through the purchase of
"net worth certificates" from institutions with
large mortgage portfolios, low net worth, and
negative earnings. This provision of the Garn-St
Germain act expires in three years.
Regulatory
Changes
Over the past two years, the Federal Home Loan
Bank Board has authorized several regulatory
changes designed to encourage institutions to
restructure their asset portfolios and to relieve
some of the pressure on deteriorating net worth.
In 1981, the Bank Board approved two reductions in the net-worth requirement, almost to the
lowest level allowed by statute. Accompanying
these reductions was a temporary exemption
from the net-worth requirement if an institution
took steps to match more closely the maturities
of assets and liabilities, such as selling older
mortgages and replacing them with liquid assets
or issuing longer-term liabilities.
More recently, the FHLBB has approved another regulatory change that will serve to increase the ratio of net worth to total liabilities,
which generally is the focus of the agency for
regulatory purposes. Beginning in June 1982, the
FHLBB reclassified certain liabilities, such as
loans in process and unearned discounts on
purchased assets, as "contra-assets." As a result, the level of liabilities is lower, and thus the
ratio of net worth to liabilities is higher. For the
industry as a whole, the increase in this ratio will
be negligible, but certain institutions may be able
to report significantly higher ratios.
Effective November 1982, the Federal Home
Loan Bank Board allowed federally insured savings and loan associations to include "appraised
equity capital" as part of the net-worth figure
used for regulatory purposes. Appraised equity
capital is the difference between the market
value and the book value of office land, buildings, and similar assets. Because the value of
Thrift Institutions in Recent Years
these assets has appreciated rapidly in recent
years, their market values are well above the
values reported on the books of savings and
loans, and could represent a substantial boost in
regulatory net worth. Appraised equity capital
will not appear on the balance sheet of an institution, and the net-worth figure reported in financial statements will not be affected by this ruling.
Rather, appraised equity capital is simply to be
used by a supervisory agent in reviewing the
financial condition of a savings and loan association. Institutions can include appraised equity
capital in the regulatory net-worth calculation
only once, and the ability to use this accounting
technique expires on December 31, 1985.
One of the more widely publicized and controversial regulatory changes by the FHLBB was a
revision in the accounting treatment of capital
gains and losses on the sale of assets. Generally
accepted accounting principles, and previous
FHLBB regulations, require that the full amount
of a capital gain or loss be realized in the
accounting period in which it occurs. In September 1981, however, the FHLBB began to allow
savings and loan associations to amortize all
gains and losses from the sale of assets over a
period equal to the remaining term of that asset.
The regulatory change sought to encourage institutions to restructure their asset portfolios by
disposing of older, low-yielding mortgages and
replacing them with instruments bearing current
market rates. Because this accounting treatment
does not meet generally accepted accounting
principles, it cannot be used by institutions in
their certified financial statements.
Another change approved by the FHLBB relates to the accounting treatment of mergers
between savings and loan associations. Frequently in merger cases, intangible assets, including "goodwill," are purchased by the acquiring institution, and, like other fixed assets, they
must be depreciated over time. Previously, the
regulations stated that goodwill must be fully
depreciated in no more than ten years. However,
in September 1981, the FHLBB changed its
regulations to incorporate the forty-year maximum allowed by generally accepted accounting
principles. This esoteric change lies at the heart
of one of the more controversial aspects of the
recent situation: the use of "purchase account-
733
ing" in mergers of thrift institutions, which results in higher reported earnings in the years
immediately after a merger.
Purchase
Accounting
The purchase of assets is one of two generally
accepted methods of accounting for mergers
between business enterprises; the other is the
pooling of interests. Specific criteria have been
developed for determining which method should
be employed by management. The pooling-ofinterests method should be used when the enterprises involved in a merger combine their resources and inherently share the risks and
rewards of the resulting firm. The purchase-ofassets method should be used when one of the
enterprises clearly dominates and acquires the
risks and rewards of the other.
When purchase accounting is employed, two
important adjustments are made to the balance
sheets of the merging institutions before they are
combined. First, the assets and liabilities of the
acquired firm are reappraised at their fair market
value—that is, they are marked to market. Second, goodwill is recorded as an asset. Goodwill is
defined as the purchase price of the acquired
institution less net worth after assets and liabilities have been marked to market.
The adjustments made to the balance sheets
will be reflected in the combined income statement of the surviving institution in subsequent
years. Although the assets of the acquired institution are now recorded at market values, they
will be redeemed (or repaid) at the original book
value. This difference between the market value
and the book value of acquired assets must be
accumulated over time and reported as income.
It is generally believed that the goodwill purchased by the acquiring firm will diminish over
time. Accordingly, goodwill should be gradually
depreciated. Thus a second adjustment to the
income statement will be the amortization of
goodwill, recorded as an expense.
If the difference between the market value and
the book value of assets is accumulated over a
relatively short period (say, five to ten years) and
the goodwill is amortized over a longer period
734
Federal Reserve Bulletin • December 1982
(say, thirty to forty years), the reported earnings
of the merged institution initially will be higher
than they would have been in the absence of a
merger. This boost to reported earnings is temporary, of course, lasting only until the discount
on the assets is fully accreted. After this point,
the only adjustment to the income statement is
the amortization of goodwill, which will tend to
depress reported earnings. The boost to earnings
in the early years after a merger is strictly the
result of accounting adjustments that alter the
timing of income and expenses. The higher earnings do not reflect a basic strengthening in the
institution.
After the change by the FHLBB in the regulations governing the amortization of goodwill and
the widespread application of purchase accounting by thrift institutions, developments unfolded
on two fronts. First, industry representatives
attempted to obtain authorization from either the
Congress or the regulators to employ purchaseaccounting techniques even when no merger was
involved. These "fresh start" accounting proposals were presented as no-cost solutions to the
industry's problem. Both the FHLBB and the
FDIC have issued proposals concerning these
new accounting techniques for savings and loans
and mutual savings banks, but the only change
authorized thus far has been the use of appraised
equity capital by savings and loan associations.
Certain states—New Jersey, Pennsylvania, and
Michigan—were more sympathetic to this accounting approach and have allowed state-chartered institutions to use mark-to-market accounting in their financial reports.
In contrast, the Financial Accounting Standards Board, which establishes generally accepted accounting principles, has acted to limit the
gain in earnings associated with the application
of purchase accounting to mergers of thrift institutions. Concerned that purchase accounting
does not reflect the true condition of the merged
associations, the Financial Accounting Standards Board is expected to rule soon that the
period over which goodwill can be amortized
cannot exceed the period over which the discount on assets is accreted to income. With this
ruling in place, the application of purchase accounting to most mergers of thrift institutions
will not enhance earnings and the major account-
ing "solution" used in the thrift industry will be
eliminated.
Phoenix
Mergers
An accounting solution to the problems of the
thrift industry that combines purchase accounting and income capital certificates is the "phoenix" merger (named for the mythical bird that
rose from its own ashes). Under this plan, two or
more weak institutions are combined with the
financial assistance of the FSLIC. The insurance
agency will purchase income capital certificates
from the new institution, thus raising the level of
net worth, and the benefits to earnings associated with purchase accounting will prevent the
erosion of net worth in the years immediately
after the merger. The hope of the FSLIC is that,
over the period that purchase accounting keeps
earnings positive, lower interest rates and a
restructuring of the institution's operations will
restore its profitability. The FSLIC has used the
phoenix plan only when other cost-effective
mergers were not available; currently, there are
five phoenix institutions. Once the ruling of the
Financial Accounting Standards Board eliminates the benefit to earnings associated with
purchase accounting, the phoenix plan is unlikely to remain a useful alternative.
THE
RESTRUCTURING
OF THE THRIFT
INDUSTRY
Accounting solutions, by themselves, are not the
permanent answer to the earnings problems of
the thrift industry. Their function is to forestall
immediate supervisory action by the insurance
agencies and to permit institutions to adjust
gradually to a more competitive and volatile
financial environment. Over the long run, many
institutions will be unable to survive and will
have to be merged out of existence, while others
will seek merger partners voluntarily to gain
access to new markets or to broaden the services
they offer. Thus a rapid pace of consolidation can
be expected to continue for several years. In
addition, various regulatory and statutory
changes in recent years have expanded the asset
Thrift Institutions in Recent Years
and liability powers in an effort to reduce the
volatility of earnings and to allow thrift institutions to retain their customers and to win new
ones. Although the industry has already incorporated some of these new powers, change probably will be gradual.
Merger
and
Consolidation
A general downward trend in the number of
institutions in the thrift industry has been evident
for two decades: there were 6,850 savings and
loan associations and mutual savings banks in
1960 and 5,050 at the end of 1980. During the past
two years this trend has accelerated dramatically:
more than 300 mergers were completed in 1981,
and the total for 1982 could exceed 500 (chart 3).
As might be expected, many of the recent
mergers were supervisory in nature—that is,
directed or negotiated by the Federal Deposit
Insurance Corporation or the Federal Savings
and Loan Insurance Corporation—and several
involved financial assistance. The fundamental
objectives of the agencies are to preserve the
insurance fund and to protect depositors at the
least cost. The first step to these objectives is to
encourage institutions to solve their own problems through internal restructuring or voluntary
merger. If these methods cannot work, a supervisory merger, perhaps involving financial assist3. Mergers of FSLIC- insured savings and loans
Number
Supervisory mergers are those arranged by the FSLIC without
financial assistance.
1982 data are as of September 30.
735
ance, will be arranged. Financial assistance from
the FSLIC has taken the form of an income
capital certificate, which will minimize outlays in
the current period and will be repaid if the
institution becomes profitable once again. Another method of financial assistance that minimizes current outlays is an income guarantee for
some fixed number of years. Under this approach, the insurance agencies would make contributions to maintain income when an increase
in interest rates reduced the earnings of the
acquired thrift institution; similarly, the insurance agencies would share in any improvement
in earnings brought about by a reduction in
interest rates.
In its effort to conserve the insurance fund, the
FSLIC has turned to nontraditional mergers.
Interstate mergers have been allowed when there
has been no suitable merger partner within a
state or when a bid from an out-of-state institution has reduced significantly the amount of
required financial assistance. In addition, to reduce FSLIC outlays and to attract new capital,
investors from outside the thrift industry have
been encouraged to purchase shares of ownership in institutions being merged out of existence. Investors other than thrift institutions that
have injected capital into the industry have included bank holding companies, a finance company, a manufacturing firm, and a steel maker.
Controversy has surrounded some of the recent mergers in the thrift industry because interstate expansion and interindustry mergers traditionally have been prohibited either by statute or
by federal regulation. Recent action by the Congress, however, will resolve some of the issues.
With the passage of the Garn-St Germain Depository Institutions Act, federal regulators were
granted explicit authority to approve both interstate and interindustry mergers in emergency
situations. Regulators are required to attempt to
merge a weak institution with a similar type of
institution within the same state, but if a suitable
merger partner is not available, they may seek
one among other types of financial institutions or
outside the institution's home state. This emergency merger authority is in effect for only three
years.
Although supervisory mergers have been occurring at a record rate, most mergers have been
736
Federal Reserve Bulletin • December 1982
voluntary. Many of these voluntary mergers are,
in fact, undertaken to avoid the involvement of
the insurance agencies, which might insist on
replacing the management of the acquired institution. Another important motivation for the
wave of voluntary mergers is to prepare for the
transition from the traditional methods of doing
business. To reduce the volatility of earnings,
and to adapt to technological advances and new
competitors, thrift institutions must diversify
their activities and develop expertise in new
areas. Few institutions have sufficient financial
or managerial resources to adapt individually,
and thus many are seeking merger partners to
adapt more quickly and to compete more effectively. The Federal Home Loan Bank Board has
attempted to facilitate this merger process by
easing its regulations concerning mergers and
conversions to the stock form of ownership.
Expanded
Asset
and Liability
Powers
Continued progress toward restoration of a more
stable, noninflationary economy will improve the
environment in which thrift institutions, and other financial intermediaries, operate. But there
will always be unexpected shocks of one sort or
another to the economy, and the key to insulating the thrift industry from such stresses lies in
broadened asset and liability powers. Diversification of assets will permit a closer match with
the term of liabilities and allow the average
return on assets to keep pace with the average
cost of funds. On the liability side, the authority
to issue attractive deposit instruments will assist
thrift institutions in retaining their customer base
and will promote the growth of core deposits.
Through both regulatory changes and congressional action, thrift institutions now have considerable latitude to restructure their balance sheets
and to stabilize their earnings. Because these
new powers will foster major changes in the
traditional operation of a thrift institution, they
probably will be implemented gradually.
Thrift institutions historically have been specialized mortgage lenders, and regulations now
are in place that will allow them to continue
concentrating on mortgages while reducing their
interest rate risk. In July 1979, all federal savings
and loan associations received regulatory approval from the Federal Home Loan Bank Board
to write variable-rate mortgages. In April 1980,
the authority of federal savings and loan associations was expanded further to permit them to
issue renegotiable-rate mortgages. These new
instruments were welcomed by the industry, but
they did not have the potential to solve its
problems because of the rigid constraints on
changes to the contract mortgage rate and because they did not affect outstanding mortgage
loans.
Not until April 1981, when the industry already had entered the early stages of its earnings
squeeze, was an unconstrained mortgage instrument authorized. These so-called adjustable
mortgage loans allow thrift institutions, when
writing loan contracts, to select any index for
adjusting the mortgage rate and to alter that rate
as frequently as they wish and by as much as the
index allows. These mortgages can reduce significantly the amount of interest rate risk assumed
by a depository institution, but their use is likely
to spread only gradually: both consumers and the
secondary mortgage market also must adapt to
them. Currently, about 40 to 45 percent of all
new conventional first mortgages closed by savings and loan associations have adjustable-rate
features. Mortgage loans outstanding with adjustable rates account for only about 6 percent of
total mortgages held by savings and loans (see
table 3).
Another group of regulatory changes by the
FHLBB that are designed to reduce interest rate
risk at savings and loans associations involves
financial futures and options. Even though adjustable mortgage loans (and other asset powers
discussed below) can lower the average maturity
of thrift institution assets, the duration of assets
and liabilities still may not match. Thus the
institutions could remain vulnerable to fluctuations in interest rates. In addition, savings and
loan associations are subject to interest rate risk
between the time they commit to issue a mortgage and the time that commitment is taken
down. Properly used, the authority to trade in
financial futures and options will allow institutions to fix borrowing or lending rates in the
Thrift Institutions in Recent Years
future, and thereby reduce any remaining interest rate risk.
Over the past two years, the Congress has
expanded significantly the array of assets and
liabilities that thrift institutions may have in their
portfolios. Under the Depository Institutions
Deregulation and Monetary Control Act of 1980,
for example, thrift institutions nationwide received the authority to issue NOW accounts.
This act also expanded the investment authority
of federal savings and loan associations by allowing them to hold commercial paper and corporate
debt securities, by easing the constraints on
consumer lending, and by permitting them to
offer credit card services and to exercise trust
and fiduciary powers. Federal savings and loan
associations also received expanded authority to
invest in service corporations, and mutual savings banks with a federal charter were authorized
to issue commercial loans and to hold corporate
demand deposits. Finally, this act preempted
state laws that limit allowable interest rates on
certain contracts for first mortgages.
The Economic Recovery and Tax Act of 1981
authorized all depository institutions to issue
from October 1981 through December 1982 a
savings certificate on which the first $1,000 of
interest income ($2,000 for a joint return) was tax
exempt. These "all savers certificates" were
designed to limit the interest expenses of thrift
institutions because their interest rate was set
below other market rates. As it turned out, the all
savers certificate program was not of great importance to thrift institutions: the combined inflow to savings and loan associations and mutual
savings banks was only about $30 billion, or
about 4 percent of total deposits.
The Garn-St Germain Depository Institutions
Act of 1982 is the most comprehensive piece of
legislation addressing the thrift industry's problems. It provides expanded authority for federal
regulators to deal with financially weak institutions, as well as new asset and liability powers
that are designed to remedy the underlying
causes of the earnings squeeze. As already mentioned, this act authorizes the federal insurance
agencies to provide capital assistance to financially weak institutions, permits interindustry
and interstate mergers in emergency situations,
737
and authorizes a deposit account competitive
with money market mutual fund shares. It also
allows thrift institutions to hold up to 10 percent
of their assets in commercial loans (and to issue
demand deposits in connection with those loans),
increases the limits on the amount of consumer
loans that a thrift institution may hold, removes
constraints on investing in state and local government securities, and authorizes other categories of loans.
Moreover, the Garn-St Germain act preempts
state laws that prohibit the enforcement of dueon-sale clauses in mortgage contracts. These
laws, which are in effect in 12 states, prohibit a
lender from requiring that a mortgage loan be
repaid when the property is sold. The net effect is
to prolong the life of a mortgage on the balance
sheet of a thrift institution and to depress earnings if the loans in question are low yielding. This
preemption is effective immediately on new conventional loans issued by depository institutions,
but state laws may continue to protect existing
loans for three years.
S UMMAR Y AND CONCL US IONS
As recently as six months ago, the situation
confronting savings and loan associations and
mutual savings banks was bleak. The high level
of short-term interest rates was generating large
losses at these institutions, and their net-worth
positions were deteriorating rapidly. Mergers in
the first half of this year had accelerated from the
already rapid pace in 1981. Since midyear, however, the prospects for thrift institutions have
brightened. The lower level of short-term interest rates improved earnings rather quickly, and
the passage of the Garn-St Germain Depository
Institutions Act will help ensure the survival of
many institutions over the long run.
Although the outlook is now more favorable,
many uncertainties and problems still beset this
industry. For example, a large transfer of lowcost passbook savings deposits to the new higher-yielding accounts might result in negative income for 1983. In addition, the events of the past
three years have left many institutions with very
low levels of net worth and earnings problems
738
Federal Reserve Bulletin • December 1982
that will not necessarily disappear with the lower
level of interest rates. Thus the federal insurance
agencies still have many problem cases to resolve. Finally, thrift institutions face a period of
adaptation to the new asset and liability powers
that will help foster growth and profitability.
Voluntary mergers probably will be an important
part of this process as institutions combine to
enter new markets and expand the range of
services they offer.
Even after this transition period, thrift institutions may well remain primarily mortgage lend-
ers, but a larger percentage of the loans held in
their portfolios are likely to have variable-rate
features that effectively match the duration of
liabilities. The expanded asset powers of savings
and loan associations and mutual savings banks
will broaden their diversification and provide
new sources of income. This greater diversity,
combined with adjustable-rate mortgage loans,
should make the revenue of thrift institutions
more responsive to the swings in short-term
interest rates and reduce the volatility of their net
income.
•
739
Treasury and Federal Reserve Foreign
Exchange Operations: Interim Report
This interim report, covering the period August
through October 1982, is the twentieth of a series
providing information on Treasury and System
foreign exchange operations to supplement the
regular series of semiannual reports that are
usually issued each March and September. It
was prepared by Sam Y. Cross, Manager of
Foreign Operations of the System Open Market
Account and Executive Vice President in charge
of the Foreign Group of the Federal Reserve
Bank of New York.
By the end of the August-October period under
review the dollar had risen to record highs, or to
levels not seen in many years, against several
major currencies, strengthening even as U.S.
interest rates dropped sharply and as interest
differentials favoring dollar-denominated assets
narrowed appreciably. Favorable prospects for
the U.S. economy relative to other industrial
countries, apprehension about the international
banking system, and concern about economic
and political conditions abroad resulted in an
increased global preference for dollar-denominated assets, which pushed dollar exchange rates
sharply higher.
Concern over international credit exposures
and developing financial strains in various markets around the world were sustaining factors
behind the dollar's rise throughout the period.
During August, market attention focused on Germany where a large multinational company was
being forced into receivership and on Mexico
where a foreign exchange crisis was unfolding.
During September, concern over the international financial situation mounted as developments in
Mexico, particularly in light of the unexpected
move to nationalize domestic banks, raised
doubts in the market about the ability and willingness of the government and other publicsector institutions in that country to meet their
external obligations.
At the same time, the list of countries experiencing payments arrears expanded, and there
were well-publicized problems of various commercial banks here and abroad. In this environment, traders did worry about the relatively large
exposures of U.S. banks to Mexico and other
Latin American countries, and developing pressures on the U.S. banking system were reflected,
to an extent, in a widening of yield spreads
between U.S. government obligations and private credit instruments. But, with so much of the
total international credit exposures made up of
dollar-denominated claims, dollar-based institutions were thought to be in a better position than
others to deal with emerging liquidity strains.
Moreover, individual institutions sought to augment their liquidity positions, especially in dollars, against potential funding and cash-flow
problems and in advance of important statement
dates.
Meanwhile, prospects for economic recovery
remained gloomy, and concerns intensified that
many of the industrialized countries would tend
to rely more on protectionist measures to deal
with high and rising levels of unemployment and
slack business investment at home and would
welcome improvements in international competitiveness in increasingly restricted export markets. These concerns tended to coalesce in Europe when several Scandinavian countries
devalued their currencies, at times by more than
private and official observers thought necessary
to regain competitive equilibrium. Market speculation developed that several European governments would seek to adjust their currencies
downward, involving a realignment of the joint
European Monetary System (EMS) float. Within
that arrangement speculative selling pressures—
largely against the French and Belgian francs,
the Italian lira, and the Danish krone—intensified around mid-October. But these pressures
tended to moderate late in the period after official
740
Federal Reserve Bulletin • December 1982
actions were taken by several countries to raise
domestic interest rates, to adopt domestic austerity measures, or to increase international borrowings. The monetary authorities of the EMS
member states intervened heavily as sellers of
dollars and, to a lesser extent, of currencies
trading at the top of the joint float arrangement.
Nonetheless, the EMS currencies as a group
declined substantially against the dollar.
Other international developments also reinforced the demands for dollars. These included
uncertainties over the future political sovereignty of Hong Kong, which reportedly generated
flows of capital to North America, and aggravated hostilities in the Middle East, which kept alive
fears of disruption of the flow of internationally
traded oil. Certain currencies that had previously
offered clear alternatives to investment in dollardenominated assets also came under sometimes
unfavorable exchange market scrutiny, as participants focused on unresolved political divisions
over economic, social, and foreign policies in a
number of countries. In Germany, Chancellor
Schmidt's coalition government collapsed over
disputes about economic policy. At first, the
prospect of a new government generated expectations that the policy stalemate would be broken. But soon the market concluded that the new
coalition government might face serious difficulties in winning a majority at upcoming federal
elections next spring and that, in the interim, it
had less room to reorient policies than had first
been hoped. Also, in Japan, Prime Minister
Suzuki unexpectedly announced that he would
not seek reelection, and uncertainty over his
successor clouded the outlook for the course of
Japanese economic policy.
To some extent, developments in the U.S.
current account also continued to support the
dollar, largely because economic activity that
was weaker than expected tended to limit the
deterioration in U.S. trade performance associated with the eroding price competitiveness of
U.S. exports. Thus, although many forecasters
projected a modest current account deficit in the
third quarter of 1982, few participants anticipated a major shift from equilibrium in the U.S.
current account until the domestic economy
moved decidedly out of recession. At the same
time, Germany's current account had slipped
from surplus to near balance, and some analysts,
perceiving structural weaknesses in the German
economy, predicted only limited further improvement in Germany's balance of payments in
the absence of a recovery in world demand and
output. At the same time, earlier optimistic forecasts of Japan's current account surplus were
scaled back further.
For these various reasons, the United States
was viewed relatively favorably on economic
and political grounds, and market participants
bid up the value of the dojlar. On occasion,
however, the impact of these concerns on the
dollar was offset, as market participants focused
on actual and expected declines in U.S. interest
rates. In late August, for example, a shift in the
outlook for U.S. interest rates occurred. At
midyear Federal Reserve authorities had indicated that, in view of exceptional economic uncertainty and strong liquidity demands, they would
tolerate monetary expansion at annual rates that
were somewhat higher than those that had been
targeted. Market participants, however, were
skeptical that declines in interest rates would be
sustainable so long as they expected an early
recovery in economic activity.
By late summer, however, evidence suggested
a deepening of the U.S. recession, a weakening
in short-term business credit demands, and a
slowing in money supply growth that brought the
narrow monetary aggregate—Ml—within the annual growth range of 2Vi to 51/2 percent. By the
end of August, therefore, short-term U.S. market rates had dropped about 5 percentage points
from the peak levels at the end of June, the
Federal Reserve had reduced its discount rate in
four steps from 12 to 10 percent, and market
participants had gained confidence that these
declines would stick. Also, with inflation abating
and with the Congress passing a tax increase,
bond yields dropped as much as 2 percentage
points in the midst of an unusually strong debtmarket rally, accompanied by record price increases in the stock market. Abroad, interest
rates did not recede nearly so much, although
declines in production and output continued and
unemployment advanced further with a deepening of the recession in major foreign economies.
As a result, interest differentials favorable to the
dollar narrowed dramatically—for instance, on
three-month Eurodeposits from IVi to VA percentage points vis-a-vis the German mark and
Foreign Exchange Operations: Interim Report
from 9Vz to 4 percentage points against the Japanese yen—and the dollar moved lower in the
exchange markets.
Early in October the dollar's strengthening
trend was again temporarily interrupted. After
the Federal Open Market Committee meeting
early that month, it was announced that less
emphasis would be placed in the immediate
future on Ml as an operating target of monetary
policy and that somewhat more rapid growth of
the broader aggregates would also be tolerated in
an environment of extreme economic and financial uncertainty. As explained by Chairman
Volcker, financial innovation and institutional
change—such as the large volume of all savers
certificates about to mature and the new money
market deposit accounts to be introduced late in
1982—coupled with the still appreciable
strengthening in the desire for liquidity served to
distort Ml as a reliable policy guide. Also, the
rigid pursuit of targets in view of these developments would have had the practical effect of a
more restrictive policy than intended when the
targets were initially set out. Shortly after these
statements deemphasizing the role of Ml, the
Federal Reserve cut the discount rate another V2
percentage point to 9 l /i percent. In the market,
these actions were widely interpreted as a shift
toward greater monetary accommodation by the
U.S. authorities and generated expectations that
declines in U.S. money market and official interest rates, which had stalled during September,
would again resume. Once again the dollar came
on offer in the exchange market.
But, as in August, the dollar's decline proved
temporary and market psychology toward the
dollar remained positive. Few market participants regarded the shift in operating procedure
as an abandonment of the fight against inflation.
Moreover, substantial progress had already been
achieved in moving toward greater price stability
in this country, with wage, salary, and price
increases slowing markedly and unit labor costs
even more dramatically. In response, interest
rates in longer-term markets dropped another 1
percentage point in October alone. Yet, compared with other countries, the decline in U.S.
nominal interest rates still lagged behind the
reduction of inflationary pressures, so that real
U.S. interest rates remained high, both absolutely and relative to other countries. Furthermore,
741
foreign monetary authorities were expected to
take fuller advantage of what by this time appeared to be sustainable declines in U.S. interest
rates to ease credit conditions in their economies. These expectations were confirmed when
official and market interest rates in major European countries declined considerably in the last
weeks of October.
Under these circumstances, financial markets
were impressed with anecdotal evidence suggesting that foreign investors sought to benefit
from the continuing potential for price appreciation in U.S. domestic capital markets by investing in longer-term, dollar-denominated securities. While foreign purchases of these securities
were apparently financed largely out of existing
dollar-denominated assets, talk of foreign investment activity nonetheless had a positive psychological effect on the dollar and may have been
associated with renewed bidding for dollars in
the exchange market.
By the end of October the dollar reached
record highs against several of the continental
currencies, levels not seen in nearly 6 years
against the pound sterling and the Japanese yen,
and a 14'/2-month high against the German mark.
On balance, for the 3-month period under review
the dollar rose 8^percent against the Japanese
yen, 6 percent against the Swiss franc, 5 percent
against the German mark, and 4V2 percent
against the pound sterling. With respect to the
Canadian dollar, however, the dollar declined
about 2 percent. On a trade-weighted basis the
dollar rose 43A percent.
The U.S. authorities intervened on four occasions during the period when the dollar was bid
up sharply to higher levels in unsettled markets.
The Federal Reserve and the U.S. Treasury
intervened early in August and again early in
October to purchase $45.0 million equivalent of
German marks and $57.0 million equivalent of
Japanese yen. The German mark purchases were
split evenly between the Federal Reserve and the
Treasury. Of the total Japanese yen acquired,
$38.5 million equivalent was for the Federal
Reserve and $18.5 million equivalent was for the
U.S. Treasury.
In the August-October period, various shortterm financing arrangements were concluded in
support of Mexico's efforts to strengthen its
economic and financial position. At the begin-
742
Federal Reserve Bulletin • December 1982
1. Drawings and repayments by foreign central
banks under reciprocal currency arrangements'
Millions of dollars; drawings or repayments ( - )
Millions of dollars; drawings or repayments ( - )
Bank drawing on Federal
Reserve System
Bank of Mexico
Outstanding,
July 31,
1982
700.0
1
I
August 1
through
October 31,
1982
Outstanding,
October 31,
1982
700.0
-700.0
700.0
1. Data are on value-date basis.
ning of the period, the Bank of Mexico had
outstanding a one-day $700 million drawing on its
swap line under the Federal Reserve's reciprocal
currency arrangements used to finance a shortrun liquidity need, which was repaid on August
1. Then, with the Mexican authorities proceeding
with the implementation of a previously announced stabilization program, the Bank of Mexico again drew $700 million under its reciprocal
swap line with the Federal Reserve on August 4,
this time for a period of three months. The
Mexican authorities also arranged a temporary
new $1 billion swap facility with the U.S. Treasury over the August 14-15 weekend, drew $825
million, and then on August 24 repaid the entire
drawing using an advance payment for oil from
the U.S. Department of Energy.
Meanwhile, negotiations among Mexico, the
U.S. Treasury, the Federal Reserve, and major
foreign central banks resulted in a multilateral
package to provide bridge financing to an International Monetary Fund (IMF) standby credit.
The credit facility totaling $1.85 billion comprised $325 million with the Federal Reserve,
$600 million with the U.S. Treasury, and $925
million with the Bank for International Settlements. During the period under review the Bank
of Mexico drew, for three months, $105 million
and $195 million on the Federal Reserve and
U.S. Treasury swaps respectively, as part of the
first $600 million it took down on the combined
facility. The Mexican authorities also made one
overnight drawing of $250 million on the combined facility, which was repaid. The drawing
comprised $43.8 million on the Federal Reserve,
$81.2 million on the U.S. Treasury, and $125
million on the Bank for International Settlements. Subsequently, the Bank of Mexico also
drew for three months $87.5 million on the
Federal Reserve and $162.5 million on the U.S.
2. Drawings and repayments by the Bank of Mexico
under special reciprocal currency arrangements'
Drawings on
Outstanding,
July 31,
1982
U.S. Treasury special
temporary facility
for $1,000 million
August 1
through
October 31,
1982
825.0
-825.0
Drawings on special
combined credit
facility
Federal Reserve
special facility for
$325 million
U.S. Treasury special
facility for $600
million
Outstanding,
October 31,
1982
1
}
0
236.3
-43.8
192.5
438.8
-81.3
357.5
1. Data are on value-date basis.
Treasury, leaving $1 billion still available on the
entire combined credit facility as of October 31.
In other developments the U.S. Treasury provided $1.23 billion of short-term financing to
Brazil by arrangements that had been under
discussion since October. This additional shortterm liquidity was made available in conjunction
with economic policies adopted by Brazil at the
October meeting of its National Monetary Council. The financing was provided under three swap
facilities. One drawing on the first $500 million
facility was made on October 28 for $350 million.
Other facilities made available in November,
when combined with the above-mentioned $500
million, totaled $1.23 billion and were announced
by President Reagan during his visit to Brazil in
the first week of December. The swap arrangements represent bridging loans to Brazil's drawings under the Compensatory Financing Facility
of the IMF as well as on its reserve position with
the IMF.
3. Drawings and repayments by the Bank of Brazil
under special reciprocal currency arrangement
with the U.S. Treasury1
Millions of dollars; drawings or repayments ( - )
Drawing on
U.S. Treasury special
facility for $500
million
Outstanding,
July 31,
1982
August 1
through
October 31,
1982
Outstanding,
October 31,
1982
0
350.0
350.0
1. Data are on value-date basis.
Foreign Exchange Operations: Interim Report
4. U.S. Treasury securities, foreign currency
denominated1
Millions of dollars equivalent; issues or redemptions ( - )
743
5. Net profits or losses ( - ) on U.S. Treasury and
Federal Reserve current foreign exchange
operations
Millions of dollars
Amount of
commitments
July 31,
1982
August 1
through
October 31,
1982
Amount of
commitments
October 31,
1982
Public series
Germany
Switzerland
2,610.6
458.5
-671.2
0
1,939.4
458.5
Total
3,069.1
-671.2
2,397.9
Issues
1. Data are on a value-date basis.
On September 1 the U.S. Treasury redeemed
additional securities denominated in German
marks equivalent to $671.2 million. After this
redemption, the Treasury had outstanding
$2,397.9 million equivalent of foreign currency
notes, public series, which had been issued in the
German and Swiss markets with the cooperation
of the respective authorities in connection with
the dollar-support program of November 1978.
Of the notes outstanding as of October 31, 1982,
a total of $1,939.4 million equivalent was denominated in German marks and $458.5 million
equivalent was denominated in Swiss francs.
In the three-month period from August
through October, the Federal Reserve had no
profits or losses on its foreign currency transac-
U.S. Treasury
Period
August 1 through October
31, 1982
Valuation profits and
losses on outstanding
assets and liabilities as
of October 31, 1982 . . . .
Federal
Reserve
Exchange
Stabilization
Fund
General
account
0
-.6
30.6
-777.9
-1,472.9
619.3
1. Data are on a value-date basis.
tions. The Exchange Stabilization Fund (ESF)
lost $0.6 million in connection with sales of
foreign currency to the Treasury general account, which the Treasury used to finance interest and principal payments on foreign currencydenominated securities. The Treasury general
account gained $30.6 million on the redemption
of German mark-denominated securities. As of
October 31, 1982, valuation losses on outstanding balances were $777.9 million for the Federal
Reserve and $1,472.9 million for the ESF. The
Treasury general account had valuation gains of
$619.3 million related to outstanding issues of
securities denominated in foreign currencies. •
745
Industrial Production
Released for publication December 15
Industrial production declined an estimated 0.4
percent in November. Cutbacks in output were
concentrated in motor vehicles, metals, and a
number of business equipment industries. At
135.6 percent of the 1967 average, the total index
for November was 11.9 percent below its recent
peak in July 1981.
1976
1978
1980
1982
In market groupings, output of consumer
goods contracted 0.5 percent in November, reflecting a reduction in auto and light truck assemblies as well as declines in nondurable consumer
goods, such as food and fuel. The reduced auto
assembly rate of 4.5 million units per year helped
contract automobile inventories. Production of
business equipment declined 0.5 percent, as continued sharp reductions in the output of manufac-
1976
1978
1980
1982
All series are seasonally adjusted and are plotted on a ratio scale. Auto sales and stocks include imports. Latest figures: November.
746
Federal Reserve Bulletin • December 1982
1967 = 100
Percentage change from preceding month
1982
1982
Grouping
Oct.p
Nov. e
July
Total industrial production
136.2
135.6
.1
-.3
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment
Defense and space
Intermediate products
Construction supplies
Materials
139.4
138.6
142.3
127.0
148.3
146.9
111.2
142.1
124.2
131.2
138.9
138.1
141.6
126.0
147.8
146.1
112.1
141.8
124.1
130.4
.4
.3
.7
2.0
.2
-1.1
1.8
.6
.8
-.4
-.4
-.9
-1.2
-3.2
-.3
-.6
.0
1.3
2.4
-.2
Manufacturing
Durable
Nondurable
Mining
Utilities
135.6
121.3
156.3
116.6
168.2
134.9
120.3
156.0
116.2
167.2
.3
.3
.3
-2.8
-1.0
Aug.
Oct.
Nov.
Percentage
change,
Nov. 1981
to Nov.
1982
-.8
-.8
-.4
-7.3
-1.0
-1.0
-.6
-1.2
-.3
-2.4
.0
-.9
-1.3
-.5
-.9
-.9
-.7
-3.3
.1
-2.2
1.6
-.9
-1.0
-.8
-.4
-.4
-.5
-.8
-.3
-.5
.8
-.2
-.1
-.6
-5.8
-6.2
-1.7
-2.9
-1.3
-18.4
6.5
-4.6
-4.6
-9.8
-1.1
-1.7
-.4
1.4
.4
-.5
-.8
-.2
-.3
-.6
-7.0
-10.5
-2.7
-18.9
-1.0
Sept.
Major market groupings
Major industry groupings
p Preliminary.
e Estimated.
-.7
-1.2
.0
-1.6
-.5
NOTE. Indexes are seasonally adjusted.
turing, power, and transit equipment were offset
in part by a rise in oil and gas well drilling
following ten months of steep decline in this
activity. Production of construction supplies
edged downward in November, and business
supplies declined further.
Production of materials was reduced 0.6 percent—about the average rate of decline during
the three preceding months. Output of durable
materials decreased sharply, reflecting continued
cutbacks in the production of metals, particularly
-.1
-.8
.8
-2.7
.5
steel, and in the output of parts for consumer
durables and for equipment. Production of nondurable materials was unchanged, and output of
energy materials declined.
In industry groupings, output of manufacturing
declined 0.5 percent in November, reflecting a
cutback of 0.8 percent in the production of
durables and a decline of 0.2 percent in nondurables. Output of mining and production of utilities were reduced 0.3 and 0.6 percent respectively.
747
Statements to Congress
Statement by Paul A. Volcker, Chairman, Board
of Governors of the Federal Reserve System,
before the Joint Economic Committee of the
U.S. Congress, November 24, 1982.
I appreciate this opportunity to discuss with you
the current stance of monetary policy and some
problems for the future. Before responding to
certain questions directed to me about monetary
policy in your letters of October 18 and November 17, Mr. Chairman, I should first emphasize
that the basic thrust and goals of our policy are
unchanged since I testified before the Congress
on July 20. The precise means by which we move
toward our goals must take account of all the
stream of evidence we have on the behavior of
(and distortions in) the various monetary aggregates, the economy, prices, interest rates, and
the like. But we remain convinced that lasting
recovery and growth must be sought in a framework of continuing progress toward price stability—and that the process of money and credit
creation must remain appropriately restrained if
we are to deal effectively with inflationary dangers.
For that reason, we must continue to set forth
targets for growth in money and credit and to
judge the provision of bank reserves—our most
important operating instrument—in the light of
the trend in the growth of these aggregates. This
process necessarily involves continuing judgments about just what growth in those magnitudes is appropriate in the short and longer run,
matters affected by institutional change as well
as by more fundamental economic factors.
As you are aware, the current job of developing and implementing monetary policy has been
complicated by regulatory decisions as well as by
recent developments in the economy and in our
financial markets. We have as a consequence (1)
made some technical modification in our operating procedures to cope with obvious distortions
in some of the monetary data, particularly Ml,
and (2) accommodated growth in the various
monetary aggregates at rates somewhat above
the targeted ranges. The first of those decisions
was essentially technical. The latter decision is
entirely consistent with the view I expressed in
testifying before the Banking Committees in July
that the Federal Open Market Committee would
tolerate "growth somewhat above the targeted
ranges . . . for a time in circumstances in which
it appeared that precautionary or liquidity motivations, during a period of economic uncertainty
and turbulence, were leading to stronger than
anticipated demands for money."
Unfortunately, the difficulties and complexities of the economic world in which we live do
not permit us the luxury of describing policy in
terms of a simple, unchanging numerical rule.
For instance, the economic significance of any
particular statistic we label "money" can change
over time—partly because the statistical definition of money is itself arbitrary and the components of the money supply have differing degrees
of use as a medium of exchange and liquidity.
That fact doesn't make much difference in a
relatively stable economic, financial, and institutional environment, but at times of rapid change
like the present, it can matter a great deal.
We also have to take account of varying lags—
never known with precision—between actions
today and their consequences later. We have to
try to disentangle the temporary and cyclical
from more persistent trends in relationships
among'different measures of money and inflation
and economic activity. And we have to evaluate
the significance of developments abroad as well
as at home, as reflected in trade accounts and the
exchange rate, and of strains in the financial
structure itself.
As this suggests, the economic environment in
which we set policy—or policy itself—cannot be
condensed into a simple, one-dimensional statement. Perhaps the essence of the problem and
748
Federal Reserve Bulletin • December 1982
our approach can be better captured by a few
"yes-but" phrases.
elaborate in a moment, for fiscal as well as
monetary policy.
Yes, we have broken the inflationary momentum—but continuing vigilance and effort will be
essential to continue progress toward price stability. As you know, the broad price indexes this
year have been running at about half or less of
the peak levels reached two or three years ago.
As part of this disinflationary process, growth in
worker compensation in nominal terms has declined to the area of 6 to 7 percent—but that
slower growth in nominal income has been consistent with higher real wages as inflation has
moderated.
Price and cost trends in particular sectors of
the economy are mixed—reflecting in part lags in
the process of disinflation, the effects of long
wage contracts, international and exchange rate
developments, and the immediate effects of recession on some prices—most particularly commodities. But there seems to me strong reason to
believe that the progress toward price stability
can be maintained—albeit at a slower rate—as
the economy recovers. For a time, unemployment and excess capacity should restrain costs
and prices and, of more lasting significance,
productivity growth should improve from the
poor performance of most recent years. Taken
together, restraint on nominal wage increases
and productivity growth should moderate the
increase in unit labor costs, which account for
about two-thirds of all costs. Real incomes can
rise as inflation slows, paving the way for further
progress toward stability.
To be sure, as the economy grows, some
factors holding down prices over the past year or
two will dissipate or be reversed. But large new
"price shocks" in the energy or food areas
appear unlikely in the foreseeable future, suggesting that a declining trend in the rise of unit
labor costs should be the most fundamental
factor defining the price trend.
That analysis would not hold, however, if
excessive growth in money and credit over time
came again to feed first the expectation, and then
the reality, of renewed inflation. Too much has
been "invested" in turning the inflationary momentum to lose sight of the necessity of carrying
through. There are clear implications, as I will
Yes, exceptional demands for liquidity can reasonably be accommodated in a period of recession, high unemployment, and excess capacity—
but guidelines for restrained money and credit
growth remain relevant to insure against renewed inflation. A variety of specific and general
evidence strongly suggests that the desire to hold
cash and other highly liquid assets, relative to
income, has increased this year. Much of the
more rapid increase in Ml has been in interestbearing, negotiable order of withdrawal (NOW)
accounts, which did not exist a few years ago,
but which provide the basic elements of a savings, as well as a transaction, account. With
market interest rates falling, those accounts have
been relatively more attractive on interest rate
grounds alone, and they are a convenient means
of storing liquidity at a time of economic and
financial uncertainty. At the same time, the
broader aggregates appear to reflect some of the
same liquidity motivations, as well as the stronger savings growth in the wake of the tax cut.
Most broadly, we can now observe, over a
period of more than a year, a distinct decline in
"velocity," that is, the relationship between the
gross national product and the monetary aggregates. The velocity decline for Ml, which is
likely to amount to about 3 percent from the
fourth quarter of 1981 to the fourth quarter of
1982, stands in sharp contrast to the average
yearly rise in velocity of 3 to 4 percent over the
past decade; it will be the first significant decline
in velocity in about 30 years. The velocities of
M2 and M3—which had been relatively trendless
earlier—have also declined significantly. While
some tendency toward slower velocity is not
unusual in the midst of recession, the magnitude
and persistence of the movement in 1982 are
indicative of a pronounced tendency to hold
more liquid assets relative to current income.
Without some accommodation of that preference, monetary policy at the present time would
be substantially more restraining in its effect on
the economy than intended when the targets for
the various aggregates were originally set out
earlier this year.
At the same time, policy must take into ac-
Statements
count the probability that the demands for liquidity will, in whole or in major part, prove temporary, and that an excessive rise in money or other
liquid assets could feed inflationary forces later.
Elements of judgment are inevitably involved in
sorting out these considerations—judgments
resting on analysis of the economy, interest
rates, and other factors. But broad guidelines for
assessing the appropriate growth on the basis of
historical experience will surely remain relevant
and appropriate.
In that connection, I must note the implications of the future federal budgetary position. To
put the point briefly, the prospect of huge, continuing budgetary deficits, even as the economy
recovers, carries with it the threat of either
excessive creation of liquidity and inflation in
future years, or a "crowding out" of other
borrowers as monetary growth is restrained in
the face of the Treasury financing needs, or a
combination of both. The problems flowing from
the future deficits are simply not amenable to
solution by monetary policy. Moreover, the concern engendered in the marketplace works in the
direction of higher interest rates today than
would otherwise be the case, contrary to the
needs of recovery. I know something of how
difficult it is to achieve further budgetary savings, but I must emphasize again how important
it is to see the deficit reduced as the economy
recovers. Those looming deficits in fact are a
major hazard in sustaining recovery.
Yes, lower interest rates are critically important
in supporting the economy and encouraging recovery—but we also want to be able to maintain
lower interest rates over time. Since early summer, short-term interest rates have generally
declined 5 to 6 percentage points, and mortgage
and most other long-term rates have dropped 3 to
4 percentage points. While consumer loan rates
administered by banks and other financial institutions have lagged, they are also now moving
lower. There are clear signs of a rise in home
sales and building in response to these interest
rate declines, and other sectors of the economy
are benefiting as well.
We have also had experience in recent years of
sharp increases in interest rates curtailing economic activity at times when recovery was in
to Congress
749
complete and unemployment high. Sudden large
fluctuations in interest rates contribute to other
economic and financial distortions as well. And
no doubt the fact that many interest rates remain
historically high, relative to the current rate of
inflation, reflects continuing skepticism over
prospects for carrying through the fight on inflation.
In this situation, the Federal Reserve has
welcomed the declines in interest rates both
because of the support they offer economic activity and because they seem to reflect a sense that
the inflationary trend has changed. However, we
do not believe that progress toward lower interest rates should—or for long in practice can—be
"forced" at the expense of excessive credit and
money creation. To attempt to do so would
simply risk the revival of inflationary forces;
renewed expectations of inflation would soon be
reflected in the longer-term credit markets, damaging prospects for the long-lasting expansion we
all want.
Turning to your explicit questions, Mr. Chairman, against this general background, I believe
most policymaking officials in the Federal Reserve share the general view that economic recovery will be evident throughout 1983, but at a
moderate rate of speed—probably slower than
during previous post-recession years. Unambiguous evidence that the recovery is already under
way is still absent, although encouraging signs
are evident in some rise in housing, in the
improved liquidity and wealth and reduced debt
positions of consumers, and in surveys reporting
that attitudes and orders may be stabilizing or
improving. The federal deficit, while fraught with
danger for the future, is of course providing
massive support for incomes at present.
What is crucially important—particularly in
the light of the experience of recent years—is
that we set the stage for an expansion that can be
sustained over a long period, bringing with it
strong gains in productivity and investment and
lasting improvement in employment. I have already emphasized the importance of progress
toward price stability to that outlook, and the
evidence that, with disciplined monetary and
fiscal policies, we can sustain that progress.
So far as the specific questions about mone-
750
Federal Reserve Bulletin • December 1982
tary policy in your October 18 letter are concerned, we have not, as you know, set any new
monetary targets for 1982. Current trends do
indicate that the various Ms will end the year
above the upper end of the target ranges, probably xh to 1 percent for M2 and M3 and more for
Ml given the current distortions. Bank credit will
be close to the midpoint of its range. As I
indicated at the start, the "overshoots," in the
context of today's economic and financial conditions, are consistent with the approach stated in
my July testimony.
No decision has been taken to change the
tentative targets for 1983. That matter will, of
course, be under intensive scrutiny over the next
two months, and the targets will be announced in
February.
For the time being we are placing much less
emphasis than usual on Ml. That decision was
precipitated in early October entirely by the
likelihood that the data would be grossly distorted in that month by the maturity of a large
volume of all-savers certificates, part of the
proceeds of which might be expected to, at least
temporarily, be placed in checking accounts included in Ml.
In about three weeks, the introduction of a
new ceiling-less account at financial institutions—highly liquid and carrying significant
transaction capabilities—is likely to distort further the Ml data. Judging by comments at the
last meeting of the Depository Institutions
Deregulation Committee, that account could rapidly be followed by a decision to approve a
ceiling-less account with full transaction capabilities. These new accounts could have a large, but
quite unpredictable, influence on Ml for a number of months ahead as funds are reallocated
among various accounts. Moreover, the introduction of market-rate transaction accounts will
very likely result in a different relationship and
trend of Ml relative to GNP over time. Increasing confidence in the stability of prices and a
trend toward lower market interest rates might
also affect the desire to hold money over time.
Obviously, some judgments on those matters
will be necessary in setting a target for Ml in
1983 and in deciding upon the degree of weight to
be attached to changes in Ml in our operations.
Those problems should appropriately be de-
scribed as "technical" rather than "policy" in
the sense that we will need to continue to be
concerned with the rate of growth over time of
the monetary aggregates, including transaction
balances.
The decisions taken in early October do point
to greater emphasis on M2 (and M3) in planning
the operational reserve path during this transitional period. The link between reserves and M2
is looser and more uncertain than in the case of
Ml, in large part because reserve requirements
on accounts included in M2, apart from transaction balances, are very low or nonexistent.
(Transaction balances are about 17 percent of
M2.) Therefore once a reserve path is set, deviations of M2 from a targeted growth range may
not, more or less automatically, be reflected in
substantial changes in pressures on bank reserve
positions or in money markets as is the case with
Ml. Consequently, "discretionary" judgments
may be necessary more frequently in altering a
reserve path than when the reserve path is focused more heavily on Ml. In that technical
sense, the operational approach has necessarily
been modified.
In sum, the broad framework of monetary
targeting has been retained, but greater emphasis
is for the time being placed on the broader
aggregates. The specific operating technique that
had been closely related to Ml has, by force of
circumstances, been conformed to that emphasis. Obviously, entirely apart from questions of
economic doctrine and contending approaches to
monetary control, so long as Ml is subjected to
strong institutional distortions, our techniques
must be adapted to take account of that fact.
An alternative operating approach suggested
by some of supplying and withdrawing reserves
with the intent of achieving a particular interest
rate target would suffer from several fundamental defects: 1
1. That was not, as sometimes mistakenly thought, the
operating approach used before October 1979. Then, reserves
were provided with the aim of achieving and maintaining a
particular federal funds rate thought to be consistent with
targets for the monetary aggregates. The federal funds rate
was a means to achieving a monetary target and in principle
was to be handled flexibly. In practice, among other difficulties, there appeared to be a reluctance to permit rates to vary
rapidly enough to maintain control of the aggregates.
Statements
1. The body of theory or practice does not
provide a sufficiently clear basis for relating the
level of a particular interest rate to our ultimate
objectives of growth and price stability.
2. The implication that the Federal Reserve
could in fact achieve and maintain a particular
level of relevant interest rates in a changing
economic and financial environment is not warranted.
3. The very concept and measurement of a
"real" interest rate, as called for in some proposals, is a matter of substantial ambiguity.
4. As a practical matter, attempts to target and
fix interest rates would make more rigid and tend
to politicize the entire process of monetary policy.
5. In current circumstances, with huge budget
deficits looming, a requirement that the Federal
Reserve set explicit interest rate targets is bound
to be interpreted as inflationary, and the rekindling of inflationary expectations will work
against our objective.
I realize the several legislative proposals addressed to targeting interest rates would, on their
face, seem to call for interest rates as only one of
several targets. But interest rates would certainly
be the most obvious and sensitive target, and
those targets would be difficult to change. Other
evidence for a need to "tighten" or "ease"
would be subordinated, if not ignored.
As we approach the target-setting process for
1983, our objectives will—indeed as required by
law—continue to be quantified in terms of
growth in relevant money and credit aggregates.
We will have to decide how much weight to place
on Ml and other aggregates during a transitional
period, assuming new accounts continue to distort the data. In reaching and implementing those
decisions, the members of the FOMC necessarily
rely upon their own analysis of the current and
prospective course of business activity; the interrelationships among the aggregates, economic
activity, and interest rates; and the implications
of monetary growth for inflation. In other words,
the process is not a simple mechanical one, and it
seems to me capable of incorporating—within a
general framework of monetary discipline—the
elements of needed flexibility. We will also, as
part of that process, review whether technical
adjustments in procedures for establishing and
to Congress
751
changing the reserve paths are appropriate. I will
be reporting our conclusions to the Congress in
February.
Mr. Chairman, you have suggested that our
monetary targets might reasonably be specified
as a single number, with a range above and
below. At times we have debated within the
FOMC the wisdom of such an approach (or
setting forth a single target number without a
range). My own feeling has been, and remains,
that a single number, with or without a range,
would convey a specious sense of precision, with
the result of greater pressure to meet a more or
less arbitrary number to maintain "credibility,"
even if developments during the year tend to
indicate some element of flexibility is appropriate
in pursuit of the targets.
To me, our present practice of setting forth a
range is preferable. When appropriate, we can
and should suggest the probability of being in the
upper or lower portion of the range, or suggest
what conditions could evolve in which something
other than the midpoints (or even an over- or
undershoot) would be appropriate. That approach seems to me to provide more information—and more realism—than a single number
and is broadly consistent with present practice.
For similar reasons, I believe we need to
measure and target a variety of aggregates because, in a swiftly changing economic environment, any single target can be misleading. In that
connection, I believe an indication of total credit
flows broadly consistent with the monetary targets could be helpful. As you know, we now
provide such estimates for bank credit alone.
Given the limits of forecasting and analysis,
and the volatility of the data, I would question
the usefulness of further sectoral estimates. Even
with respect to total credit flows, there is considerable looseness in relationships to economic
activity for periods as long as a year—and still
more for shorter periods. The theoretical framework relating credit flows to other variables such
as the GNP or inflation is less fully developed
than in the case of monetary aggregates, and
credit flows are less directly amenable to control.
The enormous flows across international borders
pose large conceptual and statistical problems.
Our credit data are typically less complete and
up-to-date than monetary data.
752
Federal Reserve Bulletin • December 1982
However, so long as those difficulties and
limitations are recognized—and some of them
are relevant with respect to the monetary aggregates as well—I share the view that analysis of
credit flows can contribute to policy formulation.
To assist in that process, I will propose to the
Open Market Committee that estimates of the
expected behavior of a broad credit aggregate be
set forth alongside the monetary targets in our
next report.
I do strongly resist the idea of the Federal
Reserve as an institution forecasting interest
rates. No institution or individual is capable of
judging accurately the myriad of forces working
on market interest rates over time. Expectational
elements play a strong role—fundamentally expectations about the course of economic activity
and inflation but also, in the short run, expectations of Federal Reserve action. We could not
escape the fact that a central bank forecast of
interest rates would be itself a market factor. To
some degree, therefore, in looking to interest
rates and other market developments for information bearing on our policy decisions, we
would be looking into a mirror. Moreover, the
temptation would always be present to breech
the thin line between a forecast and a desire or
policy intention, with the result that operational
policy decisions could be distorted.
While it seems to me inappropriate for a central bank to forecast interest rates regularly,
analysis of key factors influencing credit conditions and prices can be helpful at times. On
occasion, we have provided such analysis in the
past. My concern about the outlook for fiscal
policy is rooted in major part in such analysis
because the direction of impact on interest rates
seems to be unambiguous. I have also, on a
number of occasions, indicated that the recent
and even current level of interest rates appears
extraordinarily high, provided, as I believe, we
continue to make progress on the inflation front.
Perhaps, in our semiannual reporting, we can
more explicitly call attention to major factors
likely to influence short- or long-term interest
rates and the significance for various sectors of
the economy. But I do not believe interest rate
forecasting would be desirable or long sustainable, and would in fact be damaging to the policy
process.
Finally, Mr. Chairman, you have requested a
"single composite forecast" of the major economic variables by FOMC members. As you are
well aware, our present practice is to set forth a
range of forecasts of individual FOMC members
of the nominal and real GNP, prices, and unemployment. The fact is we have no single "Federal
Reserve" forecast, and there is no mechanism,
within a Committee or Board structure, to force
agreement on such a forecast by individual members bringing different views, typically backed by
separate staff analysis, to the table. A simple
average—possibly supported by no one—seems
to me artificial. The process of attempting to
force a censensus would certainly dilute the
product.
I would put the point positively. A range of
forecasts by individual FOMC members more
accurately conveys the range of uncertainty and
contingencies that must surround any forecast.
The seeming neatness and coherence of a single
forecast too often obscures the reality that a
variety of outcomes is possible; the very essence
of the policy problem is to assess risks and
probabilities—what can go wrong as well as what
can go right. A point forecast would likely be
treated more reverently than it would deserve,
and could even distort policy judgments in misguided efforts to "hit" a forecast.
I can understand your concern that a range of
forecasts may be misleading if strongly influenced by "outlying" opinions rather than reflecting a more even dispersion of views. For that
reason, I would be glad to explore with the Open
Market Committee a procedure by which we
indicated the "central tendency" of members'
views—assuming such a central tendency exists—as well as indicating the range of opinions.
Conversely, if the forecasts were evenly distributed within the range, we could so indicate. I
believe that approach would meet the objectives
you seek in a realistic and helpful manner.
In concluding this already long testimony, let
me say that we share the common goals of
achieving, in the words of the Employment Act
of 1946 and the Humphrey-Hawkins Act of 1978,
"Maximum employment, production, and purchasing power" and "full employment . . . (and)
reasonable price stability." Those objectives
have eluded us for too many years. We meet
Statements
to Congress
753
again today in particularly difficult circumstances, and there is a sense of frustration and
uncertainty among many.
But I also happen to believe we have come a
long way toward laying the base for economic
growth and stability: economic recovery should
characterize 1983, and that recovery can mark
the beginning of a long period of stable growth.
Obviously there are obstacles—interest rates
are still too high; inflation is down but not out;
there are strains in our financial system; we face
budget deficits that are far too high; we are
tempted to turn inward or backward for quick
solutions that ultimately cannot work. But it is
also plainly within our capacity to deal with
those threats—provided only that we have a
strong base of understanding among us, that we
resolve to act when action is necessary, and that
we have the patience and wisdom to refrain from
actions that can only be destructive.
You are leaving the Congress after 28 years,
Mr. Chairman. Through that time, you have
consistently provided constructive leadership to
the effort to raise the level of economic discussion in general—and of the dialogue between the
Congress and the Federal Reserve in particular. I
happen to believe strongly in the independence
that the Congress has provided the Federal Reserve through the years—but also in the need for
close and continuing communication with the
Congress and the administration. I presume that
this is the last time I will appear before you
personally in this forum, but the dialogue will
continue to benefit from your efforts, your initiative, and your sense of commitment in more
ways than you may realize.
•
Statement by J. Charles Partee, Member, Board
of Governors of the Federal Reserve System,
before the Committee on Banking, Housing, and
Urban Affairs, U.S. Senate, December 10, 1982.
On June 30, Penn Square Bank requested, and
was granted, a $20 million loan from the Federal
Reserve Bank of Kansas City. This loan was
supported by a pledge of $26.3 million of Penn
Square Bank's customer notes. The loan was
repaid the next day. Friday, July 2, the bank
again borrowed, this time in the amount of $5.7
million that was collateralized by $39.4 million of
Penn Square Bank's customer notes.
Over the weekend of the Fourth of July, the
Federal Reserve Bank was notified by the Comptroller of the Currency that the Penn Square
Bank's current loan losses and potential loan
losses arising from irregularities in loan documentation and in other business practices would
extinguish the bank's capital funds. The Comptroller also informed the Federal Reserve that the
Penn Square Bank would be unable to meet the
demands of its depositors and creditors from
private funding sources. In response to the
Comptroller's evaluation of the bank's asset
portfolio, its capital position, and the dissipation
of its private funding sources, the Federal Reserve Bank notified the Comptroller of the Currency of its intention not to extend credit to the
bank under these circumstances. Subsequently,
the Comptroller declared the bank insolvent, and
it was closed on July 6. The Federal Deposit
Insurance Corporation, as receiver, paid the $5.7
I am happy to appear before this committee to
discuss the Federal Reserve's involvement with
the Penn Square Bank. Let me state at the outset
that the Federal Reserve's involvement was limited to its role as a lender of last resort and
regulator of Penn Square Bank's parent bank
holding company and to a general concern over
the impact of bank failures on the orderly operation of the nation's financial system.
As a lender of last resort, the Federal Reserve
provides essential credit to depository institutions for the purpose of providing temporary
liquidity in times of need. The lending function of
the Federal Reserve is conducted through the
District Federal Reserve Banks, which operate
under broad guidelines established by the Board
in Washington. In the case of Penn Square Bank,
the Federal Reserve Bank of Kansas City was
the lending bank. The President of the Kansas
City Reserve Bank has appeared before a congressional committee to explain the Reserve
Bank's loans to Penn Square Bank in detail, and
his testimony is a matter of public record. Briefly, the relevant facts are as follows.
754
Federal Reserve Bulletin • December 1982
million loan owing to the Federal Reserve Bank
of Kansas City, which released the collateral to
the receiver.
The Federal Reserve also functioned as the
regulator of the bank's parent company, First
Penn Corporation. The condition of First Penn
Corporation was essentially reflective of the condition of the bank because the parent company
was a "shell" principally serving as a vehicle to
hold the stock of the bank. As is the case when
the holding company owns a national bank, the
Reserve Bank relied on the findings of the Comptroller with respect to the bank's condition. The
Federal Reserve Bank of Kansas City inspected
the First Penn Corporation on two occasions
between the beginning of 1981 and the time the
bank failed in July 1982. There was no evidence
that any of the activities of the holding company
contributed to or were in any way responsible for
the difficulties of the Penn Square Bank. Indeed,
virtually all of the parent company's assets were
represented by deposits with, investments in, or
loans purchased from the Penn Square Bank.
In the context of the Board's concern over the
effect of the failure of Penn Square Bank in the
markets generally, the Federal Reserve explored
possible alternatives to liquidation of the bank.
Given the circumstances and the short period of
time available to arrange an alternative solution,
however, it became clear on Monday, July 5,
that the bank was destined for liquidation.
Before the closing, the Federal Reserve was
notified that the Penn Square Bank had a substantial amount of uninsured deposits from financial institutions. Under the receivership, the un-
insured depositors were to be given "receiver's
certificates" in amounts equal to the uninsured
portion of their respective deposits. In response
to the potential liquidity needs of these financial
institutions, the Federal Reserve announced that
the receiver's certificates would be acceptable as
collateral for advances at the Federal Reserve
discount window. Since the failure of the Penn
Square Bank, the Federal Reserve has received
only a limited number of discount window borrowing requests from these institutions. As of
today, there are no loans outstanding that are
secured by receiver's certificates.
The Federal Reserve has also reviewed the
Penn Square episode to determine the capacity
of existing bank laws and regulations to handle a
similar situation should it occur in the future. In
our judgment, current banking statutes and regulations and the supervisory tools available to
federal bank regulators are adequate at present
to oversee the safety and soundness of our
nation's banking system. We would point out,
once again, that the failure of Penn Square
resulted from an extreme emphasis on growth at
the expense of sound lending and funding practices, and in the absence of proper management
oversight and controls. The extremely unsound
banking practices that caused the failure of the
Penn Square Bank represent an isolated instance
and are not characteristic or typical of most
commercial banks or depository institutions generally. Indeed, the evidence we have continues
strongly to indicate that the overwhelming majority of banks are being operated in a sound and
prudent manner.
•
755
Announcements
CHANGE
IN DISCOUNT
RATE
The Federal Reserve Board announced a reduction in the discount rate from 9Vi to 9 percent,
effective November 22, 1982. The discount rate
is the interest rate that is charged for borrowings
from the District Federal Reserve Banks.
The further half-point reduction in the discount rate, which is broadly consistent with the
prevailing pattern of market rates, was taken
against the background of continued progress
toward greater price stability and indications of
continued sluggishness in business activity and
relatively strong demands for liquidity.
The Board acted on requests from the directors of the Federal Reserve Banks of Boston,
New York, Philadelphia, Richmond, Atlanta,
Chicago, St. Louis, Minneapolis, Kansas City,
and San Francisco. Subsequently, the Board
approved similar requests from the directors of
the Federal Reserve Bank of Dallas, effective
November 23, and the Federal Reserve Bank of
Cleveland, effective November 26, 1982.
ACH
SERVICE.
REVISED
FEE
SCHEDULE
The Federal Reserve Board has announced a
revised fee schedule for its automated clearinghouse service and also changes in the Federal
Reserve's procedures for administering clearing
balances.1
ACH Service Fee
Schedule
The Monetary Control Act of 1980 requires that
the Federal Reserve establish fee schedules for
its ACH service and for other Federal Reserve
services, according to pricing principles estab-
1. An automated clearinghouse (ACH) is a computer facility for sorting and settling electronically originated payments,
instead of payments originated by checks.
lished by the Board. The Board began charging
for ACH services, based on pricing principles
published earlier, in August 1981. In adopting the
1981 fee schedule for ACH services, the Board
recognized that ACH service was in the process
of development and had not yet reached a mature
level. In recognition of this fact, the Board
established 1981 fees on the basis of what it
regarded as a mature volume of ACH items,
expected to be achieved in about five years, with
the objective of promoting the continuing development of the ACH service in the public interest.
The Board said it would review its ACH pricing
policy annually.
In reviewing its ACH pricing policy in April
1982, the Board decided it was appropriate to
continue providing a measure of such encouragement. However, to provide the private sector
with information as to when full cost-recovery
pricing would begin, the Board decided on a
schedule that calls for increasing ACH fees by 20
percent annually, permitting ACH fees to be set
in 1985 to recover 100 percent of the costs
incurred in providing commercial ACH services.
The Board has therefore adopted the following
schedule, which will be in effect in 1983, designed to recover 40 percent of the current costs
of providing ACH services.
Fee schedule
Day-cycle cost
Intra-ACH
Debits originated
Credits received
New York intra-ACH
Debits originated
Credits received
Inter-ACH
Debits originated
Credits received
New York inter-ACH
Debits originated
Credits received
Night-cycle surcharge
Intra- and inter-ACH
Debits originated
New York intra- and inter-ACH
Debits originated
cents
2.0
4.0
1.0
2.0
3.5
5.5
2.5
3.5
5.0
5.0
756
Federal Reserve Bulletin • December 1982
The basic structure of the new ACH fee schedule is the same as the current fee schedule. But
the new schedule also recognizes that benefits
accrue to receivers of credits arising from reduced costs and from improved availability of
funds that are not realized by originators of
daytime debits. Consequently, the fees for receivers of ACH credits will be higher, in general,
than for originators of ACH debits.
Clearing
Balance
Procedures
To improve the flexibility of Reserve Banks in
meeting the needs of institutions holding clearing
balances with the Federal Reserve, the Board
approved two changes in procedures governing
the establishment and maintenance of clearing
balances. Clearing balances are balances maintained with the Federal Reserve by a depository
institution for settling fund transfers cleared
through the Federal Reserve. These balances
earn credits that institutions may use to pay for
Federal Reserve services. The changes, to be
effective January 27, 1983, or as soon thereafter
as possible, are as follows:
1. To permit any depository institution desiring a clearing balance to have one. Current
procedures vary widely among Reserve Banks,
with some Banks allowing clearing balances only
for institutions that have zero or small reserve
balances and other Banks allowing clearing balances for some larger banks as well.
2. For pure clearing balance and mixed accounts, to revise the current carryover limit of 2
percent of the required clearing balance plus
required reserves by providing penalty-free
bands on either side of the total required balance
equal to the greater of $25,000 or 2 percent of the
required clearing balance. Any institution holding a balance within these bands would receive
earnings credits on the actual clearing balance
held and would not incur penalties for deficiences. The lower bound of the penalty-free
band would be truncated at the point at which the
total maintained balance equals the required reserve balance. Thus, an institution could not use
the penalty-free band on its clearing balance to
lower its effective reserve requirement. Carryover would be allowed for amounts outside the
penalty-free bands but within current carryover
limits. Institutions with only a reserve balance
would remain under current carryover rules.
The Board's clearing balance policy that these
changes amend was published in the B U L L E T I N ,
vol. 67 (March 1981), pp. 247-52.
CONSUMER ADVISORY
NEW
MEMBERS
COUNCIL:
The Federal Reserve Board has named 13 new
members to its Consumer Advisory Council to
replace members whose terms are expiring, and
has designated a new Council Chairman and Vice
Chairman.
Ms. Susan Pierson De Witt was named Chairman to succeed Mrs. Charlotte H. Scott. Ms. De
Witt is Assistant Attorney General and Chief of
the Consumer Protection Division for the State
of Illinois.
Mr. William J. O'Connor, Jr., a partner in a
law firm in Buffalo, New York, succeeds Dr.
Margaret Reilly-Petrone as Vice Chairman.
The Council advises the Board in the field of
consumer financial protection laws and other
consumer-related matters. Its members come
from all parts of the country and include a broad
representation of consumer and financial industry interests. The Council meets several times a
year in sessions open to the public.
The 13 new members named for 3-year terms
are as follows:
James G. Boyle, Austin, Texas, is a consumer law
specialist and a director of the Texas Consumer Association. Mr. Boyle formerly served as director of
governmental relations for the Consumer Federation
of America in Washington, D.C.; was on the board of
directors of the National Consumer Law Center in
Boston; founded the National Coalition for Consumer
Education; and cofounded the Consumer Law Section
of the State Bar of Texas.
Thomas L. Clark, Jr., White Plains, New York,
Deputy Superintendent of Banks, New York State
Banking Department since 1976, is in charge of the
Consumer Affairs Division, which supervises statechartered and licensedfinancialinstitutions. Mr. Clark
is a member of the Governor's Interagency Task Force
on Small Business and the Governor's Minority Business Executive Committee.
Jean A. Crockett, Philadelphia, Pennsylvania, Professor of Finance at the Wharton School of Finance of
the University of Pennsylvania, has been at Wharton
since 1955. She is the author of numerous publications
Announcements
on interest rates, consumption, savings, and investment. Dr. Crockett is chairman of the board of directors of the Federal Reserve Bank of Philadelphia, and
previously served on the Federal Reserve Board's
Truth in Lending Advisory Committee. She is also on
the board of directors of the American Finance Association and the National Bureau of Economic Research.
Richard F. Halliburton, Kansas City, Missouri,
Deputy Director of Legal Aid of Western Missouri,
acts as a statewide consumer law resource to legal
services attorneys, and has litigated a variety of consumer issues in both state and federal courts. Mr.
Halliburton has discussed consumer law issues on
local radio and television shows, and has lectured
before consumer and community groups and classes.
He has also engaged in a number of consumer education activities.
Charles C. Holt, Austin, Texas, Professor at the
Management Department of the University of Texas,
has served from 1977 until recently as the director of
the University's Bureau of Business Research. Dr.
Holt was formerly principal research associate at the
Urban Institute in Washington, D.C., and before that
chaired the Social Systems Research Institute at the
University of Wisconsin. He was also professor of
economics at the University of Texas, at the London
School of Economics, and at the Graduate School of
Industrial Administration, Carnegie Institute of Technology.
Kenneth V. Larkin, San Francisco, California, Executive Vice President of the Bank of America, has
been with the bank for 37 years. From 1967 to the
present, Mr. Larkin served as director of marketing
and has been in charge of installment credit and credit
card activities within the bank. He is currently senior
consultant to the bank on global retail banking and on
the boards of directors of VISA U.S.A., VISA International, Finance America Corporation, the California
Bankers Association, and the Student Loan Marketing
Association.
Timothy D. Marrinan, Minneapolis, Minnesota, Assistant Vice President and Legal Counsel of First Bank
System, is responsible for First Bank System's compliance with the consumer financial protection regulations. He is faculty adviser for the American Bankers
Association Graduate Compliance School and former
dean of its National Compliance School. Mr. Marrinan
is also a frequent lecturer at the University of Colorado's Graduate School of Banking and at the Herbert
Prochnow Graduate School of Banking at the University of Wisconsin. He has authored several articles on
issues facing the financial industry and is a member of
the Consumer Bankers Association Lawyers Committee and of the American Bar Association's Committee
on Consumer Financial Services.
Elva Quijano, San Antonio, Texas, Vice President
and Executive Professional Officer of the Republic
Bank of San Antonio, had formerly served as Executive Vice President of Plaza Bank, N.A. With more
than 25 years of banking experience, Ms. Quijano is an
757
active member of the American Institute of Banking,
the National Association of Bank Women, and the
National Bankers Association. In 1980, she served on
the task force of women in business at the White
House Conference on Small Business.
Janet M. Scacciotti, Providence, Rhode Island,
President and Chief Executive Officer of Guild Loan
and Investment Company, a consumer financial services company and a subsidiary of Old Stone Corporation, has been primarily involved in developing and
implementing new consumer savings products. Ms.
Scacciotti also serves as a director of the Rhode Island
Share and Deposit Indemnity Corporation, which insures credit union, loan and investment company, and
bank deposits.
Glenda G. Sloane, Washington, D.C., Director of
Housing and Community Development, Center for
National Policy Review at Catholic University School
of Law, monitors fair housing laws to ensure equal
access to housing and housing finance for minorities
and women through participation in the regulatory and
legislative processes and in litigation. Mrs. Sloane
serves as chairwoman of the Housing Task Force of
the Leadership Conference on Civil Rights and as a
board member of the National Low-Income Housing
Coalition. She formerly served on the U.S. Department of Housing and Urban Development's Task
Force on Housing Costs and on the board of directors
of the National Housing Council.
Henry J. Sommer, Philadelphia, Pennsylvania, Supervising Attorney with Community Legal Services,
Inc., has held legal services positions since 1974, and
now serves as lead counsel on a variety of federal and
state consumer cases. Mr. Sommer is also involved in
a wide range of teaching, consulting, and community
activities, and he has recently authored a practice
manual for the handling of consumer bankruptcy
cases. Mr. Sommer is an associate member of the
National Bankruptcy Conference and belongs to the
National Lawyers Guild and the National Organization of Legal Services Workers.
Winnie F. Taylor, Gainesville, Florida, joined the
faculty of the Holland Law Center at the University of
Florida in 1979. As an associate professor, she teaches
contracts, consumer law, and other subjects in the
consumer-commercial law areas. Since 1978, she has
served as a consultant to credit unions in identifying
and seeking resolution to consumer regulatory compliance problems. Professor Taylor has lectured on the
Equal Credit Opportunity Act nationally, and has
appeared on radio and television regarding the resolution of credit discrimination problems. Her previous
experience includes two years as a law fellow at the
University of Wisconsin School of Law and private
practice in Rochester, New York, where she handled
corporate and consumer-related matters.
Michael M. Van Buskirk, Columbus, Ohio, Community Development Officer of Banc One Corporation
since 1979, directs numerous community redevelopment initiatives for the holding company and affiliated
banks and coordinates compliance with consumer and
758
Federal Reserve Bulletin • December 1982
community regulations. From 1974 to 1979, Mr. Van
Buskirk served as administrative assistant to Congressman Chalmers Wylie and was involved in the
development of many of the consumer banking laws
enacted during that period. He chairs the Financial
Institutions Committee of the Governor's Task Force
on Small Business Financial Incentives; the Ohio
Advisory Committee on Community Education; the
Columbus-Franklin County PIC (private sector representatives who administer federal manpower training
programs); and the Federal Legislative Committee of
the Ohio Bankers Association.
REGULATION
D.
AMENDMENTS
The Federal Reserve Board on November 17,
1982, revised a temporary amendment to Regulation D (Reserve Requirements of Depository
Institutions) adopted October 5 that made certain
time deposits subject to the reserve requirements
that apply to transaction accounts. The amendment affected time deposits linked to a line of
credit on which checks or similar third-party
transfers may be drawn.
The amendment exempted such time deposit
arrangements established before October 5,
1982, but provided that if such a grandfathered
deposit is extended, or matures and is renewed,
the funds will become subject to the reserve
requirements that apply to transaction accounts.
The Board has determined to expand the
grandfather provisions of the amendment by
exempting from the definition of transaction account such time deposits that mature and automatically renew on or before December 31, 1982.
This action was taken to avoid adversely affecting, pending final Board action, some institutions
that have been unable to exercise options to
terminate such arrangements.
The expansion will provide institutions time to
decide whether to terminate these arrangements
and to notify depositors of any such decisions. It
will also allow institutions to offer, as an alternative to these arrangements, the new money market deposit approved, effective December 14, by
the Depository Institutions Deregulation Committee (DIDC).
The Federal Reserve Board has also amended
Regulation D to coordinate the end of the phasein of reserve requirements for member banks
under the Monetary Control Act with the start of
contemporaneous reserve accounting on February 2, 1984. Member banks, and certain other
institutions that are required to maintain reserves
in the same way as member banks, are phasing
down to the generally lower reserve requirements of the Monetary Control Act that were
previously scheduled to end March 1, 1984.
REGULATIONS
D AND Q.
AMENDMENTS
The Federal Reserve Board has amended its
Regulation D (Reserve Requirements of Depository Institutions) and Regulation Q (Interest on
Deposits) to implement recently enacted legislation affecting reserve requirements and the availability of negotiable order of withdrawal (NOW)
accounts.
The Garn-St Germain Depository Institutions
Act of 1982 provides that the first $2 million of
reservable liabilities in depository institutions
are to be subject to a zero percent reserve
requirement; that depository institutions are to
be authorized to issue a new type of account,
designated a money market depository account
(MMDA), to be competitive with money market
mutual funds; and that governmental units are
eligible to maintain NOW accounts.
To conform its regulations to the requirements
of the Garn-St Germain Act affecting reserve
requirements, the Board revised Regulation D as
follows:
1. Effective with the reserve computation period beginning December 9, 1982, and with the
reserve maintenance period beginning December
23, the first $2.1 million in deposits subject to
reserve requirements at depository institutions
are subject to a zero percent reserve requirement. The exemption amount of $2.1 million
takes into account the growth in deposits for the
one-year period ending June 30, 1982, as required by the act.
This change will completely exempt some
24,600 institutions, including about 18,400 institutions with total deposits of less than $2 million
that have previously been exempted from reserve requirements by Board order, or that have
no reservable liabilities.
Institutions that are now reporting their reserve liabilities to the Federal Reserve should
continue to report until further notice, even if
Announcements
they are exempt from holding reserves under this
provision of the act.
2. With respect to the new money market
deposit account authorized by the Garn-St Germain Act, the Depository Institutions Deregulation Committee (DIDC) has authorized depository institutions to issue an MMDA with the
following principal features: an account available
to all depositors, including businesses; no regulatory interest rate ceiling so long as a balance of
$2,500 is maintained; up to six automatic or
preauthorized transfers monthly, up to three of
which can be by draft; and no restriction on
withdrawals made in person, by messenger, or
by mail.
The DIDC also authorized—but said it would
reconsider at its December 6 meeting—unlimited
telephone transfers by the account holder from
an MMDA to other accounts of the depositor at
the same institution.
The act and its legislative history provide that
the MMDA account is not to be subject to
transaction account reserve requirements (generally, 12 percent) even though up to six thirdparty transfers, including up to three by draft,
are permitted. The Board established for such
accounts the same reserve requirements that
apply to savings accounts: a 0 percent requirement for personal MMDAs and a 3 percent
requirement for nonpersonal MMDAs.
For MMDAs established with telephone transfer privileges beyond the six authorized transfers, the transaction account reserve requirement of 12 percent will apply.
The reserve percentages are those that will
apply when the current phasing-in of new reserve
requirements under the Monetary Control Act is
completed. Member banks are phasing down to
the new requirements on a 3'/2-year schedule to
end in February 1984. Nonmember institutions
are phasing up to the reserve requirements of the
Monetary Control Act over a period ending in
September 1987.
The Board also amended its Regulation Q to
authorize member banks to permit governmental
units—not previously eligible—to place deposits
in NOW accounts. This action, which was taken
to conform Regulation Q to provisions of the
Garn-St Germain Act, was effective October 15,
1982. Entities eligible to maintain NOW accounts
as a result of this action include the federal
759
government, state governments, county and municipal governments and their political subdivisions, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, Guam,
and any territory or possession of the United
States and their political subdivisions.
Finally, under the terms of the Monetary Control Act of 1980, the Board increased from $26
million to $26.3 million the amount of transaction
account deposits subject to a reserve requirement ratio of 3 percent. The Monetary Control
Act requires that this low reserve tranche be
recalculated yearly based on the change in total
transaction accounts at all depository institutions
determined as of June 30.
PROPOSED
ACTION
The Federal Reserve Board has invited public
comment on an application by Hongkong and
Shanghai Banking Corporation, together with
three other banking organizations, to establish an
office in New York City to provide certain services in connection with foreign exchange operations. The Board has requested comment by
December 17, 1982.
NEW
PAMPHLET
The Board of Governors has published a new
pamphlet, "Processing Bank Holding Company
and Merger Applications." Designed as a compact reference, the pamphlet assists an applicant
banker in preparing and filing an application to
merge two banks or to form a bank holding
company, explains the application processing
steps, and outlines the relevant factors the System must consider in every application. The
pamphlet is available free of charge from Publications Services, Board of Governors of the
Federal Reserve System, Washington, D.C.
20551.
REGULATION
T:
AMENDMENT
The Federal Reserve Board has amended Regulation T (Securities Credit by Brokers and Dealers) to specify the characteristics of private mort-
760
Federal Reserve Bulletin • December 1982
gage passthrough securities that may be used as
collateral for margin credit, effective January 17,
1983.
The amendment added a provision to the definition of an over-the-counter (OTC) margin
bond, on which broker and dealers may extend
good faith credit. The final rule requires (1) an
original issue (rather than an outstanding principal amount at the time credit is extended) of
$25,000,000 that may be sold in a separate series;
(2) current filings with the Securities and Exchange Commission; and (3) a reasonable basis
for belief by the selling broker that the servicing
agent is passing through the mortgage interest
and principal payments and meeting other material terms of the offering.
SYSTEM
MEMBERSHIP:
ADMISSION OF STATE
BANKS
The following banks were admitted to membership in the Federal Reserve System during the
period November 11 through December 10, 1982:
Arizona
Tempe
Florida
Sunrise
Montana
Livingston
Virginia
Floyd
Rio Salado Bank
First State Bank of Broward
Montana Bank of
Livingston
Blue Ridge Bank
761
Record of Policy Actions of the
Federal Open Market Committee
Meeting Held on October 5, 1982
Domestic Policy Directive
The information reviewed at this
meeting suggested that real GNP had
changed little in the third quarter,
following an increase at* an annual
rate of about 2 percent in the second
quarter. Average prices, as measured by the fixed-weight price index for gross domestic business
product, were continuing to rise
more slowly than in 1981.
The nominal value of retail sales
fell nearly 1 percent in August, according to the advance report, returning to the sharply reduced June
level. Sales declines were particularly marked at automotive outlets and
at general merchandise, apparel, and
furniture and appliance stores. Sales
of new domestic automobiles increased slightly in August to an annual rate of 5.3 million units; sales
rose further to an annual rate of 6
million units in the first 20 days of
September, apparently in response
to purchase incentives offered by
manufacturers in an effort to reduce
excess stocks of 1982 models.
After having changed little in July,
the index of industrial production
declined 0.5 percent in August to a
level about 1 percent below its second-quarter average and more than
10 percent below its prerecession
level in July 1981. Production of
consumer goods fell in August, following a sizable advance over the
preceding four months, and output
of business equipment continued to
drop at a rapid rate. Output of defense and space equipment expanded further. Limited information currently available for September was
generally indicative of some further
decline in production.
Nonfarm payroll employment fell
further in August, mainly reflecting
sizable job losses in the manufacturing and trade sectors. In contrast
to the payroll data, the survey of
households indicated an increase in
employment, and the unemployment
rate was unchanged at 9.8 percent.
But initial claims for unemployment
insurance rose to a new high in midSeptember, suggesting further deterioration in the labor markets.
The Department of Commerce
survey of business spending plans
taken in late July and August suggested that businesses had again reduced their spending plans for 1982.
The survey results indicated that
current-dollar expenditures for plant
and equipment would rise only 3A of
a percent in 1982, compared with an
estimated 2*A percent in the May
survey and 7lA percent in the February survey. Actual expansion in 1981
was about S3A percent.
Private housing starts fell in August to an annual rate of 1.0 million
units, reversing much of the substantial increase in July. While starts in
August were above the average in
the second quarter, they remained
quite low by historical standards.
Sales of existing homes declined 5
percent in August to the lowest
monthly pace since 1970, while sales
of new homes continued at the sluggish pace of recent months.
The producer price index for finished goods rose 0.6 percent in August, the same as in July. The consumer price index rose only 0.3
percent in August; food prices declined for the second consecutive
month and energy prices leveled off
after increasing sharply over the preceding three months. So far this year
the producer price index and the
762
Federal Reserve Bulletin • December 1982
consumer price index had risen at
annual rates of about 33/4 percent and
5 percent respectively. In recent
months the advance in the index of
average hourly earnings had remained considerably less rapid than
during 1981.
In foreign exchange markets the
trade-weighted value of the dollar
had risen about 5 percent over the
period since the last FOMC meeting.
The dollar's strength reflected in
part a continuing concern in the market about economic and financial
difficulties abroad and also some
firming of U.S. interest rates relative
to foreign rates after a considerable
drop earlier. The U.S. foreign trade
deficit rose sharply in August, reflecting primarily a substantial rebound in nonpetroleum imports. The
deficit on average in July and August
was at a rate well above that for the
first half of the year, mainly because
of increased imports of oil.
At its meeting on August 24, the
Committee had agreed to continue
seeking behavior of reserve aggregates consistent with growth of Ml
and M2 from June to September at
annual rates of about 5 percent and
about 9 percent respectively. It had
also agreed that somewhat more rapid growth in the monetary aggregates
would be acceptable depending upon
evidence that economic and financial uncertainties were leading to exceptional liquidity demands and
changes in holdings of financial assets. The intermeeting range for the
federal funds rate, which provides a
mechanism for initiating further consultations of the Committee, was set
at 7 to 11 percent.
Following three months of weakness, Ml grew at an annual rate of
about IOV2 percent in August and
appeared to have grown more rapidly in September. Much of the
strength of Ml was accounted for by
rapid growth in other checkable deposits, but demand deposits also expanded in both months, after contracting on average since early in the
year. The expansion in checkable
deposits may have reflected in part
the early impact on take-home pay
of the tax cut as well as unusual
liquidity demands in the face of
continued economic uncertainties.
Moreover, the lower level of shortterm market interest rates had reduced the earnings disadvantage of
keeping funds in checkable accounts. Growth in M2 accelerated to
an annual rate of about 14'/4 percent
in August, but was estimated to have
slowed substantially in September as
expansion in its nontransaction component decelerated markedly.
Total credit outstanding at U.S.
commercial banks grew at an annual
rate of about 6V2 percent in August,
the same as in July but well below
the pace in the first half of the year.
Partial data for September suggested
that growth slowed somewhat despite a pickup in growth of business
loans from the sharply reduced August pace; a significant part of the
strengthening in business loans appeared to have been associated with
merger activity. Other short-term
borrowing by nonfinancial businesses generally was weak: the volume of commercial paper outstanding edged down in August and
dropped further in September. However, the weakness in short-term
borrowing was largely offset by increased long-term financing in the
bond market.
Total reserves expanded quite
rapidly in September, after having
grown relatively little on average
over the preceding several months.
A little less than half of the September growth in total reserves was supplied by nonborrowed reserves, and
adjustment borrowing (including
seasonal borrowing) by depository
institutions increased from an average of about $420 million in August
to about $815 million in September.
Most short-term market interest
rates rose somewhat on balance over
the intermeeting interval. Rates had
declined substantially over the preceding two months, and decreases
were particularly marked around the
time of the August 24 meeting of the
Committee, when expectations of
Record of Policy Actions of the Federal Open Market
continued declines in short-term
market rates were strong. Effective
August 27, the Federal Reserve discount rate was reduced from \OV2to
10 percent. Subsequently federal
funds traded at rates somewhat
above the discount rate, as compared with a trading level of around
9 percent in the last statement week
of August, and rates on private
short-term instruments also rose by
about 1 to 2 percentage points from
their late August lows. At the same
time, rates on Treasury bills moved
up only slightly, partly reflecting the
increased preference for quality on
the part of investors. The well-publicized problems in recent months of a
few banks here and abroad, the
acute external financing difficulties
of Mexico, and emerging financing
problems in other developing countries led to a more cautious atmosphere in private credit markets and
a widening of yield spreads between
U.S. government securities and
some private credit instruments.
Bond yields continued to decline
over the intermeeting period, falling
VA to 3A percentage point. Average
rates on new commitments for fixedrate conventional home mortgage
loans declined about 1 percentage
point.
The staff projections presented at
this meeting suggested that real GNP
would grow moderately in the
course of 1983, but that any recovery in economic activity in the
months just ahead was likely to be
quite limited. The projections for the
year ahead also suggested that unemployment would remain at a high
level. The rise in prices, as measured
by the fixed-weight price index for
gross domestic business product,
was expected to slow gradually from
a rate in the third quarter of 1982 that
was estimated to be somewhat higher than that in the first half of the
year.
In the Committee's discussion of
the economic situation and policy, it
was generally agreed that growth in
real GNP over the next year at about
the relatively restrained pace pro
Committee
jected by the staff was a reasonable
expectation. Expansion in output at
a somewhat faster pace might occur,
if consumer and business confidence
in the outlook improved during the
next few months. So far, however,
the widely held expectations of recovery beginning in the spring or
summer had been disappointed, and
there were still no signs of a
strengthening in the economy. The
projected expansion in consumer demands associated with the midyear
cut in federal income taxes had not
yet developed; prospects for business plant and equipment spending
and for commercial construction had
deteriorated; and agricultural income and expenditures had remained depressed. In September industrial output and employment
most likely had declined further, and
the unemployment rate had almost
surely risen from the July-August
level of 9.8 percent. Against that
background, it was recognized that
there were risks of a shortfall from
the projection of moderate growth in
real GNP over the quarters ahead.
At the same time, progress in reducing the rate of inflation had been
substantial, exceeding expectations
of many, even after allowance for
the influence of volatile prices of
energy products and foods. Moreover, further moderation in labor
cost and price pressures and also in
inflationary expectations was a reasonable anticipation, given an environment of moderate expansion in
output and employment, relatively
low levels of resource utilization,
and prospects for improvement in
productivity.
Domestic problems were being intensified because the recession in
economic activity was worldwide; it
had affected every major industrial
country and, through its impact on
foreign trade and commodity prices,
the developing countries as well.
Many of the latter countries had
accumulated large external debts
over a number of years, and they
now faced difficult financing and adjustment
problems.
Altogether,
764
Federal Reserve Bulletin • December 1982
these circumstances had been contributing to an atmosphere of nervous uncertainty, which was reflected in, among other things, the
foreign exchange value of the dollar.
Over recent months, the dollar had
risen against other major currencies
even when dollar interest rates were
declining relative to foreign rates,
and the high exchange value currently had serious implications both for
U.S. export industries and for efforts
abroad to pursue flexible monetary
policies.
The U.S. banking system had
been subjected to pressures, owing
in part to well-known problems of
particular institutions but also to a
more general uneasiness about the
possibility of further credit problems
domestically or internationally. An
unusually cautious attitude in private credit markets had led to a
widening of risk premiums, with the
result that private interest rates had
declined less than rates on Treasury
securities since midsummer, and in
recent weeks private short-term
market rates had tended to move up.
Altogether, these circumstances appeared to have been associated with
business efforts to generate and conserve cash, with market participants' concerns about the quality of
credit, and with a general increase in
precautionary demands for money
and liquidity. In financial markets
and elsewhere, a sense of disarray
could develop, which could increase
the atmosphere of uncertainty.
With respect to the period ahead,
the Committee continued to face uncertainties about the interpretation
of the behavior of the monetary aggregates in general, arising from the
impact of the current economic environment on precautionary demands
for money and liquidity. Moreover,
the behavior of M1 in particular during the final three months of the year
would inevitably be distorted by two
institutional developments. First, a
very large volume of all savers certificates would mature in the first
part of October, and disposition of
the proceeds could be expected to
induce temporary bulges in both the
demand deposit and NOW account
components of Ml. Second, later in
the quarter, as the Depository Institutions Deregulation
Committee
(DIDC) implemented recent legislation, depository institutions would
be authorized to offer a new account
(or accounts) that would be free
from interest rate ceilings, would be
usable to some degree for transaction purposes, and would be competitive with money market mutual
funds. The new account was likely
to have a substantial impact on the
behavior of Ml, but no basis existed
for predicting its magnitude. While
the new account seemed likely to
have a depressing effect on currently
defined Ml as it drew money from
NOW accounts, the direction of the
overall effect was in some doubt
since that would depend in part on
the exact characteristics of the instrument or instruments authorized
by the DIDC. The new instrument
could include even more transaction
features than the account specifically provided for in the legislation. The
new instrument could also be expected to affect the composition of
M2 and perhaps in some degree its
total as well. It seemed clear, however, that the new instrument would
affect the behavior of M2 and other
broader aggregates to a much smaller extent than that of Ml.
Because of these difficulties in interpreting the behavior of Ml during
the fourth quarter, the Committee
decided that it would place much
less than the usual weight on that
aggregate's movements during this
period and that it would not set a
specific objective for its growth. In
the view of most members, against
the background of prevailing economic and financial developments,
added pressures on bank reserve positions and money markets in response to a bulge in Ml related to
the maturing of all saver certificates
were not justified; indeed, some easing of the pressures of recent weeks
in some sectors of the private credit
markets would be desirable, if that
Record of Policy Actions of the Federal Open Market
could be consistent with growth in
the broader aggregates in line with
longer-term objectives.
The Committee agreed that in all
the circumstances, it would seek to
maintain expansion in bank reserves
needed for an orderly and sustained
flow of money and credit, consistent
with growth of M2 (and M3) from
September to December at an annual
rate in a range of around SV2 to 9V2
percent, and taking account of the
desirability of somewhat reduced
pressures in private credit markets
in the light of current economic conditions. Growth of M2 from the
fourth quarter of 1981 to the fourth
quarter of 1982 might be somewhat
above the range for the year that the
Committee had reaffirmed in July;
the Committee had also agreed then
that for a time it would tolerate
growth somewhat above the target
range, in the event of unusual precautionary demands for money and
liquidity, and that such growth
would be consistent with longerterm objectives. Recent and prospective market and economic conditions appeared consistent with that
approach. Somewhat slower growth
over the period from September to
December, bringing those aggregates around the upper part of the
ranges for the year ending in the
fourth quarter of 1982, would be
acceptable and desirable in a context
of declining interest rates. Should
economic and financial uncertainties
lead to still stronger liquidity demands,
somewhat
more
rapid
growth in the broader aggregates
would be tolerated. The intermeeting range for the federal funds rate,
which provides a mechanism for initiating further consultation of the
Committee, was set at 7 to 10V2
percent.
The following domestic policy directive was issued to the Federal
Reserve Bank of N e w York:
The information reviewed at this meeting suggests that real GNP changed little
in the third quarter, following a small
increase in the second quarter, while
prices on the average continued to rise
Committee
more slowly than in 1981. In August the
nominal value of retail sales fell back to
the sharply reduced June level, while
industrial production and nonfarm payroll employment also declined. Housing
starts fell, reversing much of the substantial July increase. The unemployment rate was unchanged at 9.8 percent
in August, but claims for unemployment
insurance have risen further in recent
weeks and there are indications of some
further decline in production. In recent
months the advance in the index of average hourly earnings has remained considerably less rapid than during 1981.
The weighted average value of the
dollar against major foreign currencies
has risen strongly further over the past
month, reflecting in part a continuing
concern in the market about economic
and financial difficulties abroad and also
some firming of U.S. interest rates relative to foreign rates after a considerable
drop earlier. The U.S. merchandise
trade deficit rose sharply in August and
on average in July and August the deficit
rate was well above that for the first half.
After three months of weakness, Ml
grew rapidly in August and September;
growth in M2 accelerated in August from
an already rapid pace but appears to
have slowed markedly in September.
Following large declines over the preceding two months, short-term market
interest rates have risen somewhat on
balance since late August, while bond
yields and mortgage rates have continued to decline. The Federal Reserve
discount rate was reduced from 10'/2
percent to 10 percent in late August.
Meanwhile, reflecting some well-publicized problems in recent months of a few
banks here and abroad and the financing
difficulties of Mexico, a more cautious
atmosphere in private credit markets has
been reflected in wider spreads between
U.S. government and some private credit instruments.
The Federal Open Market Committee
seeks to foster monetary and financial
conditions that will help to reduce inflation, promote a resumption of growth in
output on a sustainable basis, and contribute to a sustainable pattern of international transactions. In July, the Committee agreed that these objectives
would be furthered by reaffirming the
monetary growth ranges for the period
from the fourth quarter of 1981 to the
fourth quarter of 1982 that it had set at
the February meeting. These ranges
were 2Vi to 5Vi percent for Ml, 6 to 9
percent for M2, and 6V2 to 9Vz percent
for M3. The associated range for bank
credit was 6 to 9 percent. The Committee
agreed that growth in the monetary and
credit aggregates around the top of the
indicated ranges would be acceptable in
766
Federal Reserve Bulletin • December 1982
the light of the relatively low base period
for the Ml target and other factors, and
that it would tolerate for some period of
time growth somewhat above the target
range should unusual precautionary demands for money and liquidity be evident in the light of current economic
uncertainties. The Committee also indicated that it was tentatively planning to
continue the current ranges for 1983 but
that it would review that decision carefully in the light of developments over
the remainder of 1982.
Specification of the behavior of Ml
over the balance of the year is subject to
unusually great uncertainties because it
will be substantially affected by special
circumstances—in the very near term by
reinvestment of funds from maturing all
savers certificates and later by the public's response to the new account directly competitive with money market funds
mandated by recent legislation. The
probable difficulties in interpretation of
Ml during the period suggest much less
than usual weight be placed on movements in that aggregate during the current quarter. These developments are
expected to affect M2 and other broader
aggregates to a much smaller extent.
In all the circumstances, the Committee seeks to maintain expansion in bank
reserves needed for an orderly and sustained flow of money and credit, consistent with growth of M2 (and M3) in a
range of around 8V2 to 9'/2 percent at an
annual rate from September to December, and taking account of the desirability of somewhat reduced pressures in
private credit markets in the light of
current economic conditions. Somewhat
slower growth, bringing those aggregates
around the upper part of the ranges set
for the year, would be acceptable and
desirable in a context of declining interest rates. Should economic and financial
uncertainties lead to exceptional liquidity demands, somewhat more rapid
growth in the broader aggregates would
be tolerated. The Chairman may call for
Committee consultation if it appears to
the Manager for Domestic Operations
that pursuit of the monetary objectives
and related reserve paths during the period before the next meeting is likely to be
associated with a federal funds rate persistently outside a range of 7 to 10!/2
percent.
Votes for this action: Messrs.
Volcker, Solomon, Balles, Gramley,
Martin, Partee, Rice, Mrs. Teeters,
and Mr. Wallich. Votes against this
action: Messrs. Black and Ford and
Mrs. Horn.
Mr. Black dissented from this action because he preferred to direct
operations in the period immediately
ahead toward restraining monetary
growth. Although he was mindful of
the current difficulties of interpreting
the behavior of M l , he was concerned that the recent strength in Ml
might be followed by still more rapid
growth in lagged response to the
substantial decline in short-term interest rates that had occurred in the
summer, which could require even
more restrictive operations later.
Mr. Ford dissented from this action because he preferred a policy
for the period immediately ahead
that was more firmly directed toward restraining monetary growth,
although he recognized that the behavior of Ml in particular would be
difficult to interpret. He was concerned that the Committee's policy
directive might be misinterpreted in
ways that could adversely affect pursuit of the System's longer-run antiinflationary objectives, particularly
in the context of a highly expansive
fiscal policy program.
Mrs. Horn dissented from this action because she preferred to continue setting a specific objective for
growth of M l , as well as for M2,
over the current quarter, notwithstanding the problems of interpreting
its behavior. In setting-a target for
M l , she would tolerate faster growth
early in the period, owing to the
uncertain impact of the proceeds
from maturing all savers certificates,
and would give greater weight to the
behavior of M2 for some weeks after
the introduction of the new instrument at depository institutions.
Records of policy actions taken by the Federal Open Market Committee at each meeting, in the
form in which they will appear in the Board's Annual Report, are made available a few days after
the next regularly scheduled meeting and are later published in the B U L L E T I N .
767
Legal Developments
AMENDMENTS
TO REGULATION
D
The Board of Governors of the Federal Reserve System has amended Regulation D—Reserve Requirements of Depository Institutions (12 CFR Part 204) to
implement section 708 of the Garn-St Germain Depository Institutions Act of 1982 ("Garn-St Germain Act")
(Pub. L. 97-320). Under this provision, a bank that was
a member of the Federal Reserve System on or after
July 1, 1979, but which withdrew from membership on
or before March 31, 1980, is entitled to a phase-in of
reserve requirements during a period beginning October 28, 1982, and ending October 24, 1985. Such banks
are currently subject to reserve requirements in the
same manner as member banks, while other nonmembers are phasing into the reserve requirements of the
Monetary Control Act during a period that ends September 3, 1987.
Effective October 28, 1982, the Board amends Part
204 by revising section 204.4(b) and (c) to read as set
forth below:
Part 204—Reserve Requirements of Depository
Institutions
However, an institution shall not reduce the amount of
required reserves on any category of deposits or
accounts that are first authorized under Federal law in
any State after April 1, 1980.
AMENDMENTS
TO REGULATION
K
The Board of Governors of the Federal Reserve System has amended its Regulation K to change the
procedures for establishing a U.S. branch of an Edge
corporation and to shorten the notification period in
Section 211.5(c)(2) of its Regulation K from 60 to 45
days.
In addition, the Board has amended Regulation K
governing the U.S. operations of foreign banking organizations to delete an exception from a reporting
requirement concerning information on U.S. investments not readily available to the reporting organization. The Board also approved a technical change in
the language of the regulation to conform it to the
corresponding statutory provision in the Bank Holding
Company Act.
Effective November 8, 1982, the Board amends Part
211 as set forth below:
Section 204.4—Transitional Adjustments
Part 211—International Banking Operations
(b) Members and former members. The required re-
1. By revising section 211.4(c)(1) to read as follows:
serves of any depository institution that is a member
bank on September 1, 1980, or withdraws from membership after March 31, 1980, shall be determined as
follows: ***
Section 211.4—Edge and Agreement
Corporations
(c) Certain former member banks. The required re-
(c)
serves of any depository institution that was a member
bank on July 1, 1979, and withdrew from membership
during the period beginning on July 1, 1979, and ending
on March 31, 1980, shall be determined by reducing
the amount of required reserves computed under section 204.3 in accordance with the following schedule:
Reserve maintenance periods occurring
between
October
October
October
October
28,
27,
25,
24,
1982 and
1983 and
1984 and
1985 and
October 26, 1983
October 24, 1984
October 23, 1985
forward
Percentage that
computed reserves will
be reduced
50
33.3
16.7
0
*
*
*
*
*
Branches.
(1) An Edge Corporation may establish branches in
the United States 45 days after the Edge Corporation has given notice to its Reserve Bank, which is
to include a copy of the notice of the proposal
published in a newspaper of general circulation in
the communities to be served by the branch, unless
the Edge Corporation is notified to the contrary
within that time. The newspaper notice shall be
placed in the classified advertising legal notices
section of the newspaper and may appear no more
than 90 calendar days prior to submission of notice
of the proposal to the Reserve Bank. The newspaper
notice must provide an opportunity for the public to
give written comment on the proposal to the appro-
768
Federal Reserve Bulletin • December 1982
priate Federal Reserve Bank for at least 30 days
after the date of publication. The factors considered
in acting upon a proposal to establish a branch are
those enumerated in section 211.4(a)(1).
2. By revising the first sentence
211.5(c)(2) to read as follows:
of
section
Section 211.5—Investments in Other
Organizations
(c) ***
(2) Prior Notification. An investment in a subsidiary or joint venture that does not qualify under the
general consent procedure may be made after the
investor has given 45 days' prior written notice to
the Board, unless the Board waives such period
because it finds immediate action by the investor is
required by the circumstances presented, if the total
amount to be invested does not exceed 10 percent of
the investor's capital and surplus.
3. Section 211.23(h) is amended by removing paragraph (3).
for loans by a member bank to its executive officers,
directors, and principal shareholders and their related
interests.
Effective November 1, 1982, the Board amends Part
215 as set forth below:
Part 215—Loans to Executive Officers,
Directors, and Principal Shareholders of
Member Banks
Section 215.5—Additional Restrictions on
Loans to Executive Officers
(c) A member bank is authorized to extend credit to
any executive officer of the bank:
(1) in any amount to finance the education of the
executive officer's children;
(2) in any amount to finance the purchase, construction, maintenance, or improvement of a residence of
the executive officer, if the extension of credit is
secured by a first lien on the residence and the
residence is owned (or expected to be owned after
the extension of credit) by the executive officer; and
(3) in an aggregate amount not to exceed $10,000
outstanding at any one time for a purpose not
otherwise specifically authorized under this paragraph.
4. Section 211.23(a)(3) is revised to read as follows:
Section 211.23—Nonbanking Activities of
Foreign Banking Organizations
AMENDMENTS TO RULES
REGARDING
DELEGATION OF AUTHORITY
(cl)
(3) "Subsidiary" means any organization 25 per
cent or more of whose voting shares is directly or
indirectly owned, controlled or held with power to
vote by a foreign banking organization, or which is
otherwise controlled or capable of being controlled
by a foreign banking organization.
The Board of Governors of the Federal Reserve System is amending its Rules Regarding Delegation of
Authority to delegate (1) to the Federal Reserve Banks
authority to approve formation of a foreign "shell"
branch by a member bank, and authority to waive the
30 days' notice requirement to the Board before a
foreign banking organization exercises its one time
change of home State; (2) to the Director of the
Division of Banking Supervision and Regulation authority to suspend the notification period in section
211.5(c)(2) of Regulation K; and (3) to the Secretary of
the Board authority to act on certain applications
where authority is delegated to the Reserve Bank but a
senior officer or director of an involved party is also a
director of the Reserve Bank or branch. It is anticipated that these new delegations would aid the Board in
processing applications and notices in an expeditious
fashion.
Effective November 8, 1982, the Board amends Part
265 as set forth below:
AMENDMENT
TO REGULATION
O
The Board of Governors of the Federal Reserve System is amending its Regulation O (12 CFR Part 215),
which governs loans by a member bank to its executive officers, directors, and principal shareholders, to
implement certain amendments to sections 22(g) and
(h) of the Federal Reserve Act, (12 U.S.C. § 375a and
375b), included in the Garn-St Germain Depository
Institutions Act of 1982. The amendments to the
Regulation relate to the limitations on loans by a
member bank to its executive officers. In addition, the
rule confirms the dollar amount above which the prior
approval of the bank's board of directors is required
Part 265—Rules Regarding Delegation of
Authority
Legal Developments
Section 265.2—Specific Functions delegated to
Board Employees and to Federal Reserve
Banks
Q)
***
(2) Under the provisions of sections 18(c) and
18(c)(4) of the Federal Deposit Insurance Act
(12 U.S.C. §§ 1828(c) and 1828(c)(4)), sections 3(a)
and 4(c)(8) of the Bank Holding Company Act
(12 U.S.C. §§ 1842(a) and 1843(c)(8)), the Change in
Bank Control Act (12 U.S.C. § 1817(j)) and section
25(a) of the Federal Reserve Act (12 U.S.C. 611 et
seq.), and sections 225.3(b) and (c), and 225.4(a) and
(b) and 225.7 of Regulation Y (12 CFR §§ 225.3(b)
and (c), 225.4(a) and (b), and 225.7), sections
211.3(a), 211.4(c) and 211.5(c) of Regulation K
(12 CFR §§ 211.3(a), 211.4(c) and 211.5(c)), to furnish reports on competitive factors involved in a
bank merger to the Comptroller of the Currency and
the Federal Deposit Insurance Corporation and to
take actions the Reserve Bank could take except for
the fact that the Reserve Bank may not act because
a director or senior officer of any holding company,
bank, or company involved in the transaction is a
director of a Federal Reserve Bank or branch.
(c) ***
(27) Under section 25 and 25(a) of the Federal
Reserve Act and Part 211 of this Chapter (Regulation K), to waive the 45 days' prior notice period for
an investment that qualifies for the prior notification
procedures set forth in section 211.5(c)(2) of Regulation K (12 CFR 211.5(c)(2)).
(28) Pursuant to section 211.5(c)(2) of this Chapter
(Regulation K), to suspend the notification period or
to require that an investor file an application for the
Board's specific consent.
^ ***
(30) Under the provisions of the Change in Bank
Control Act of 1978 (12 U.S.C. § 18170')) and section 225.7 of this chapter (Regulation Y), with
respect to a bank holding company or State member
bank, to determine the informational sufficiency of
notices and reports filed under the Act, to extend
periods for consideration of notices, to determine
whether a person who is or will be subject to a
presumption described in section 225.7(a) of this
chapter should file a notice regarding a proposed
transaction, and, if all the following conditions are
met, to issue a notice of intention not to disapprove
a proposed change in control:
769
(i) No member of the Board has indicated an
objection prior to the Reserve Bank's action.
(ii) No senior officer or director of an involved
party is also a director of a Federal Reserve Bank
or branch.
(iii) All relevant departments of the Reserve Bank
concur.
(iv) If the proposal involves shares of a State
member bank or bank holding company controlling a State member bank, the appropriate bank
supervisory authorities have indicated that they
have no objection to the proposal, or no objection
has been received from the appropriate bank
supervisory authorities within the time allowed by
the Act.
(v) No significant policy issue is raised by the
proposal as to which the Board has not expressed
its view.
(50) Pursuant to section 211.4(c)(2) of this Chapter
(Regulation K), to approve an Edge Corporation
application to establish a branch abroad, provided
that no senior officer or director of the involved
Parties is also a director of a Reserve Bank or
branch and that no significant policy issue is raised
by the proposal as to which the Board has not
expressed its view.
(55) Pursuant to section 211.3(a) of this Chapter
(Regulation K), to approve the establishment, directly or indirectly, of a foreign branch by a member
bank where the application is not one for a fullservice branch in a foreign country, provided that no
senior officer or director of the involved parties is
also a director of a Reserve Bank or branch and that
no significant policy issue is raised by the proposal
as to which the Board has not expressed its view.
(56) Pursuant to section 211.22(c)(1) of this Chapter
(Regulation K), to waive the 30 days' prior notification period with respect to a foreign bank's change
of home State.
BANK HOLDING COMPANY AND BANK MERGER
ORDERS ISSUED BY THE BOARD OF GOVERNORS
Orders Under Section 3 of Bank Holding
Company Act
First Bancorp of New Hampshire, Inc.,
Manchester, New Hampshire
Order Approving Acquisition
of Bank
770
Federal Reserve Bulletin • December 1982
First Bancorp of N.H., Inc., Manchester, New Hampshire ("Applicant"), a bank holding company within
the meaning of the Bank Holding Company Act, has
applied for the Board's approval under section 3(a)(3)
of the act (12 U.S.C. § 1842(a)(3)) to acquire The
Bedford Bank, Bedford, New Hampshire ("Bank").
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the act.
The time for filing comments and views has expired
and the application and all comments received have
been considered in light of the factors set forth in
section 3(c) of the act (12 U.S.C. § 1842(c)).
Applicant, the second largest commercial banking
organization in the state, controls eight banks with
total deposits of $417 million (as of March 31, 1982),
representing 14.9 percent of deposits in commercial
banks in New Hampshire. Bank has deposits of $19.3
million (as of March 31, 1982),1 representing 0.7 percent of the total deposits in commercial banks in the
state, and is the 43rd largest commercial banking
organization in the state. Consummation of this proposal would not result in a significant increase in the
concentration of commercial banking resources in the
state.
Bank is the seventh largest of nine commercial
banking organizations in the Manchester banking market and controls 3.2 percent of the deposits in commercial banks in that market. A subsidiary bank of Applicant is the second largest banking organization in the
Manchester banking market, controlling 23.2 percent
of total commercial bank deposits. Consummation of
the proposed transaction would increase Applicant's
market share of deposits in commercial banks to 26.4
percent, but would not alter Applicant's rank as the
second largest banking organization in the market. In
addition, the percentage of the total deposits in commercial banks in the market held by the four largest
commercial banking organizations in the market would
increase from 78.6 to 81.8 percent. The effect of the
proposal would be to eliminate existing competition
between Applicant and Bank and also to increase the
concentration of banking resources in the Manchester
banking market to a level that, absent mitigating
considerations, would be likely to subject the merger
to challenge under the Merger Guidelines recently
issued by the U.S. Department of Justice.2
1. All banking data as of June 30, 1981, unless noted otherwise.
2. Under these guidelines, the Manchester market is considered
highly concentrated because of a Herfindahl Hirschman Index
("HHI") of 1907 (as of June 30, 1981). Consummation of Applicant's
proposal would increase the HHI by 147 points. The Justice Department's guidelines state that' the Department is likely to challenge a
merger in a highly concentrated market (a market with a HHI of 1800
or more) that produces an increase in the HHI of 100 points or more.
In a number of previous cases, the Board has, in its
evaluation of the impact of the proposal on existing
competition, taken into account as a mitigating factor
the presence of thrift institutions in the particular
market and the extent of the competition afforded by
such institutions.3 The Board did not, however, find
that the thrift institutions in those cases had developed
a sufficiently broad range of products and services
such that they should be considered full competitors
with commercial banks in the commercial banking line
of commerce.4 Although the Board has not included
thrift institutions generally in the commercial banking
line of commerce, the Board believes that the competition afforded by thrift institutions should be given
appropriate weight. This is particularly true where the
thrift institutions are among the largest depository
institutions in the market, control a substantial amount
of the market's NOW or other transaction accounts,
have substantial commercial and non-residential mortgage lending authority, and actively engage in the
business of commercial lending.5
In this case, the record shows that thrift institutions
are among the largest depository institutions in the
Manchester market. The aggregate deposits of thrift
institutions in the market, including transaction accounts, are nearly twice the amount of deposits held
by all nine commercial banks in the market.6 The two
large state savings banks in the market compete with
commercial banks in a wide range of banking services,
including the provision of savings deposits, demand
deposit and other transaction accounts, consumer
loans, and mortgage loans. State savings banks in New
Hampshire are authorized to invest up to 15 percent of
their total deposits without any limitation in unsecured
3. " F i r s t B a n c o r p of N . H . , I n c . " , 64 FEDERAL RESERVE BULLETIN
967 (1978); "Fidelity Union Bancorporation", 66 FEDERAL RESERVE
BULLETIN 576 (1980); " K e y B a n k s , I n c . " , 66 FEDERAL RESERVE
BULLETIN 781 (1980); "United Bank Corporation of New York", 67
FEDERAL RESERVE BULLETIN 358 (1981).
4. In United States v. Connecticut National Bank, 418 U.S. 656,
666 (1974), the Court suggested that thrift institutions might be
included in the commercial banking line of commerce "when and if
[they] become significant participants in the marketing of bank
services to commercial enterprises."
5. See "Fidelity Union Bancorporation," supra note 3. Cf United
States v. Philadelphia National Bank, 374 U.S. 321, 365, where the
Court adjusted downward the market shares at issue to reflect the
competitive influence within the market from out-of-market institutions.
6. The two largest savings banks in the market, Amoskeag Savings
Bank and Merchants Savings Bank of Manchester, held total deposits
of $669.5 million as of June 30, 1981, as compared to total deposits of
$502.7 million for the nine commercial banks in the market. These two
savings banks held over 30 percent of the total deposits in NOW
accounts in depository institutions in the market, approximately 15
percent of the total deposits in all transaction accounts and approximately 3 percent of the total deposits in IPC demand deposit accounts
and NINOW accounts.
Legal Developments
commercial and industrial loans7 and to accept demand deposits from commercial customers. The two
largest savings banks in the Manchester market have
established commercial lending departments, hired
commercial lending officers, actively advertised the
availability of commercial loans, and made a number
of commercial loans.8
On the basis of this record, the Board finds that the
thrift institutions in the Manchester banking market
exert a significant competitive influence in that market, an influence that mitigates the adverse effects of
the proposed transaction on competition and concentration of banking resources in the market.9 In this
regard, the Board notes that, if only 15 percent of the
deposits held by thrift institutions in the market were
included in the relevant line of commerce, the market
would no longer be considered highly concentrated on
the basis of the Justice Department's merger guidelines and the increase in the HHI would be below the
level that would be likely to subject the merger to
challenge under those guidelines.10 On the basis of all
facts of record, the Board concludes that consummation of the proposed transaction would not substantially lessen competition in the relevant Manchester banking market.
The financial and managerial resources of Applicant, its subsidiaries, and Bank are regarded as generally satisfactory, and their future prospects appear
favorable. It is expected that affiliation with Applicant
will strengthen Bank's overall financial resources,
particularly in view of Applicant's intention to provide
771
Bank with additional capital. Accordingly, the Board's
judgment is that banking factors lend weight toward
approval of the application. Upon consummation of
the proposed acquisition, Applicant will assist Bank in
offering new banking services, including residential
mortgage lending and trust services. Thus, considerations relating to the convenience and needs of the
community to be served favor approval.
Based on the foregoing and other considerations
reflected in the record, the Board has determined that
the proposed transaction would be in the public interest. Accordingly, the Board has determined that the
proposed transaction should be and hereby is approved. The transaction shall not be consummated
before the thirtieth calendar day following the effective
date of this Order or later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of Boston, acting pursuant to
delegated authority.
By order of the Board of Governors, effective
November 29, 1982.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, and Gramley. Voting against this
action: Governors Teeters and Rice.
(Signed)
[SEAL]
Associate
JAMES MCAFEE,
Secretary
of the
Board.
Dissenting Statement of Governors Teeters and Rice
7. New Hampshire R.S.A. Chapter 387.3:(II-a). State savings
banks are also authorized to invest an additional 5 percent of their
assets in commercial and business loans within the state of New
Hampshire or within 75 miles of the institution's home office. New
Hampshire R.S.A., Chapter 394-A.
8. The two largest savings banks in the market hold 4.5 percent of
the total commercial and industrial loans and over 55 percent of the
total non-residential real estate loans held by all depository institutions in the market. Moreover, the market's largest savings bank has
engaged in an aggressive advertising program to increase its volume of
commercial lending, suggesting that the market share of commercial
and industrial loans held by the thrifts in the Manchester market is
likely to increase in the near future, particularly in view of the large
share of market deposits held by the thrifts.
9. The Board does not believe that the record in this case supports a
finding that the thrift institutions in the Manchester banking market
have developed their commercial banking services to the point where
they may be considered significant participants in the provision of
bank services to commercial enterprises in the market. Accordingly,
the Board has not included these thrift institutions in the relevant
commercial banking line of commerce in the Manchester market. The
total commercial and industrial loans held by the two largest thrift
institutions in the market represent less than one percent of their total
deposits. The remaining two thrifts in the market hold no commercial
and industrial loans.
10. On this basis, the HHI for the Manchester market would be
reduced to 1345, and consummation of the merger would increase the
HHI by 91 points. The Justice Department's guidelines state that the
Department is unlikely to challenge a merger that produces an
increase in the HHI of less than 100 points in a market with a premerger HHI between 1000 and 1800.
We would deny the application of First Bancorp of
N.H., Inc. to acquire The Bedford Bank, Bedford,
New Hampshire, because we believe that consummation of this proposal would tend to substantially lessen
competition in the Manchester banking market.
Applicant is the second largest commercial banking
organization in the Manchester market, and would
increase its market share from 23.2 percent to 26.4
percent as a result of acquisition of Bank. Inasmuch as
Bank is a viable competitor, we believe its elimination
as a competitor would have significantly adverse effects on competition in the Manchester banking market.
In addition to the elimination of existing competition, the proposal would increase the concentration of
banking resources in a market that is already highly
concentrated. Specifically, upon consummation of this
proposal, the market's four-firm concentration ratio
would increase from 78.6 to 81.8 percent. Additionally, the Manchester market is considered highly concentrated under the Merger Guidelines recently issued
by the United States Department of Justice with a
772
Federal Reserve Bulletin • December 1982
Herfindahl Hirschman Index ("HHI") of 1907. Consummation of the proposal would increase the HHI by
147 points, an increase that would subject this acquisition to challenge under the Justice Department's
guidelines.
The majority found that the anticompetitive effects
of this proposal were lessened by the impact of competition from thrift institutions in the market. It is our
view that, at present, thrift institutions in the Manchester market are not sufficiently strong competitors
of commercial banks, to be weighed equally with
them, particularly in the provision of commercial loan
and deposit services. It is this cluster of commercial
services that the Courts have found relevant in assessing competition with commercial banks. Thus, we do
not consider the impact of thrift institutions in the
Manchester banking market to be sufficient to mitigate
the adverse competitive effects associated with this
application.
Accordingly, we would deny this application.
November 29, 1982
First City Bancorporation of Texas, Inc.,
Houston, Texas
Order Approving Acquisition
of Banks
First City Bancorporation of Texas, Inc., Houston,
Texas, a bank holding company within the meaning of
the Bank Holding Company Act, has applied for the
Board's approval under section 3(a)(3) of the act (12
U.S.C. § 1842(a)(3)) to acquire 100 percent of the
voting shares of Chisholm Financial Services, Inc.,
Richardson, Texas and, thus, indirectly acquire 100
percent and 82 percent, respectively, of the voting
shares of Citizens Bank, Richardson, Texas, and Chisholm National Bank, Piano, Texas (collectively referred to as "Banks").
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the act.
The time for filing comments and views has expired
and the Board has considered the application and all
comments received in light of the factors set forth in
section 3(c) of the act (12 U.S.C. § 1842(c)).
Applicant, the second largest banking organization
in Texas, controls 57 commercial banks with total
aggregate deposits of $9.8 billion, representing 9.25
percent of total deposits in commercial banks in the
state.1 Acquisition of Banks, with aggregate deposits
of $181.7 million, would increase Applicant's share of
1. Banking data are as of June 30, 1982.
state deposits by 0.17 percent and would not alter
Applicant's ranking in the state. The Board concludes
that consummation of this proposal would not result in
a significant increase in concentration of banking
resources in Texas.
Banks are currently the only subsidiary banks of
Chisholm Financial Services, Inc., Richardson, Texas, a registered bank holding company. Citizens Bank
($175.5 million in deposits) is the eleventh largest of
151 banks located in the Dallas banking market, and
holds 0.81 percent of total market deposits in commercial banks.2 Chisholm Bank ($6.2 million in deposits) is
the 151st largest commercial bank in the Dallas market
and holds 0.03 percent of total market deposits in
commercial banks. Applicant, with 11 subsidiary
banks, is the fourth largest banking organization in the
Dallas banking market and holds aggregate deposits of
$1.79 billion, representing 5.5 percent of total deposits
in commercial banks in the relevant market.
Consummation of this proposal would eliminate
some existing competition between Applicant and
Banks in the Dallas banking market. Applicant's share
of market deposits would increase by 0.84 percent,
and Applicant's rank within the market would not
change. The Board finds that consummation of the
proposal would not have significantly adverse competitive effects. In this regard, the Board notes that the
Dallas banking market is not highly concentrated and
there would remain a large number of independent
banks that could serve as entry vehicles for banking
organizations not currently represented in the market.
Accordingly, in view of all the facts of record, including the structure of the relevant market, the absolute
and relative size of Banks, and the number of banking
organizations in the Dallas banking market, the Board
is of the view that consummation of the transaction
would have no significantly adverse competitive effects in the Dallas banking market.
The financial and managerial resources of Applicant
and its subsidiaries are considered satisfactory and
their future prospects appear favorable. The financial
and managerial resources of Banks are generally satisfactory and their future prospects as affiliates of Applicant appear favorable. Accordingly, banking factors
are consistent with approval of the application. Applicant has committed to inject additional capital into
Citizens Bank, which would expand the lending capacities of Bank. Also, Applicant proposes to bring greater expertise and specialization to Banks' lending,
trust, economic consulting and forecasting, and investment and financial advisory services. The Board's
view is that the benefits to the public that may be
2. The relevant banking market is approximated by the Dallas
Ranally Metropolitan Area.
Legal Developments
expected from consummation of the proposed transaction are consistent with approval and are sufficient to
outweigh any adverse effects on competition resulting
therefrom. Therefore, the Board's judgment is that the
proposed transaction would be in the public interest
and that the application should be approved.
On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be made before the thirtieth calendar
day following the effective date of this Order or later
than three months after that date, unless such period is
extended for good cause by the Board, or by the
Federal Reserve Bank of Dallas, pursuant to delegated
authority.
By order of the Board of Governors, effective
November 1, 1982.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Teeters, Rice, and Gramley.
(Signed)
[SEAL]
Associate
JAMES MCAFEE,
Secretary
of the
Board.
Istituto Bancario San Paolo di Torino,
Turin, Italy
Order Approving
Company
Formation
of a Bank
Holding
Istituto Bancario San Paolo di Torino, Turin, Italy
("San Paolo"), and its subsidiary, San Paolo U.S.
Holding Company, New York, New York ("U.S.
Holding"), have each applied for the Board's approval
under section 3(a)(1) of the Bank Holding Company
Act (12 U.S.C. § 1842(a)(1)) to become a bank holding
company through the acquisition of 85 percent of the
outstanding voting shares of First Los Angeles Bank,
Los Angeles, California ("Bank").
Notice of the applications, affording an opportunity
for interested persons to submit comments and views,
has been given in accordance with section 3(b) of the
act. The time for filing comments and views has
expired and the Board has considered the applications
and all comments received in light of the factors set
forth in section 3(c) of the act.
San Paolo is a Public Law Credit Institution organized under the laws of Italy. Based on all the facts of
record, it does not appear that San Paolo is controlled
by or is an agency of the Republic of Italy. San Paolo is
a nonstock charitable foundation, the capital of which
has been derived from private contributions and retained earnings. The Republic of Italy has not made
any contributions to the capital funds of San Paolo.
The management and policies of San Paolo are deter
773
mined by an eleven-member board of directors and
management officials appointed by that board of directors. The Republic of Italy appoints only two members
of the board of directors of San Paolo and does not
appoint any of its management officials. The remaining
members of the board of directors are appointed by the
Chambers of Commerce, Industry, and Agriculture of
Turin, Milan, Genoa, and Rome, the Cities of Turin
and Genoa, and the Provincial Administration of the
District of Turin.
San Paolo offers a full range of commercial banking
services in Italy and operates a Federal agency in New
York State.1 U.S. Holding is a non-operating corporation wholly owned by San Paolo and organized under
the laws of New York for the purpose of acquiring the
shares of Bank.
Upon acquisition of Bank, Applicants would control
the 30th largest commercial banking organization in
California, with total deposits of $277 million, representing 0.2 percent of the total deposits in commercial
banks in the state.2 Bank is the seventeenth largest
commercial bank in the Los Angeles, California, banking market, and controls 0.5 percent of the total
deposits in commercial banks in that market.3 Inasmuch as Applicants do not conduct any banking
operations or other business in the state of California,
consummation of the proposed transaction would have
no adverse effects on existing or potential competition
in any relevant market and would not increase the
concentration of resources in any relevant area.
Therefore, the Board concludes that competitive considerations are consistent with approval of the applications.
The financial and managerial resources of each of
the Applicants appear generally satisfactory and the
future prospects of each appear favorable. The financial and managerial resources of Bank appear generally satisfactory and the future prospects of Bank appear
favorable, especially in light of commitments made by
Applicants to inject additional capital into Bank.
Based on these and other commitments made by
Applicants, the Board has determined that considerations relating to banking factors are consistent with
approval of the applications. Although consummation
of the proposal would not result in any changes the
services offered by Bank, considerations relating to
the convenience and needs of the community to be
1. San Paolo also has a minority interest in Tradinvest Purchasing
Company Limited, Hamilton, Bermuda, which owns 95 percent of
AGIP USA, Inc., New York, New York. This investment is permissible under section 211.23(f)(5) of the Board's Regulation K. (12 CFR
§ 211.23(f)(5)).
2. All deposit data are as of June 30, 1981.
3. The Los Angeles banking market is approximated by the Los
Angeles RMA.
11A
Federal Reserve Bulletin • December 1982
served are consistent with approval of the applications. Accordingly, the Board has determined that
consummation of the transaction would be in the
public interest and that the applications should be
approved.
Based upon the foregoing, including all of the facts
of record and the commitments made by Applicants,
the Board has determined that the applications should
be and hereby are approved. The transaction shall not
be consummated before the thirtieth day following the
effective date of this Order, or later than three months
after the effective date of this Order, unless such
period is extended for good cause by the Board or by
the Federal Reserve Bank of San Francisco, under
delegated authority.
By order of the Board of Governors, effective
November 29, 1982.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Teeters, and Gramley. Absent and not voting: Governors Wallich and Rice.
(Signed)
Associate
[SEAL]
JAMES MCAFEE,
Secretary
of the
Board.
United Midwest Bancshares, Inc.,
Cincinnati, Ohio
Order Approving
Formation
of a Bank
Holding
Company
United Midwest Bancshares, Inc., Cincinnati, Ohio,
has applied for the Board's approval under section
3(a)(1) of the Bank Holding Company Act (12 U.S.C.
§ 1842(a)(1)), to form a bank holding company by
acquiring 100 percent of the voting shares of Southern
Ohio Bank, Cincinnati, Ohio ("Bank").
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the act.
The time for filing comments and views has expired,
and the Board has considered the application with all
comments received in light of the factors set forth in
section 3(c) of the act (12 U.S.C. § 1842(c)).1
Applicant, a nonoperating Ohio corporation with no
subsidiaries, was organized for the purpose of becoming a bank holding company by acquiring Bank, which
holds deposits of approximately $209.6 million.2 Upon
1. The Board has received an objection to the application from
AmeriTrust Corporation, Cleveland, Ohio ("AmeriTrust"). The
Board has also received thirteen comments in support of the proposed
acquisition of Bank by Applicant from various business, community,
and civic groups in the Cincinnati area, including a letter from the
Mayor of Cincinnati.
2. Deposit data are as of March 31, 1982.
acquisition of Bank, Applicant would control the 35th
largest bank in Ohio and would hold 0.48 percent of
the total commercial deposits in the state.
Bank is the 5th largest of 41 banking organizations in
the relevant banking market and holds approximately
4.25 percent of total deposits in commercial banks in
the market.3 The proposed transaction is essentially a
corporate reorganization, consummation of which
would not result in any adverse effects upon competition or in an increase in the concentration of banking
resources in any relevant market. Accordingly, the
Board concludes that competitive considerations are
consistent with approval.
Applicant proposes to become a bank holding company through the purchase of all of the voting shares of
Bank for $28 million. The source of funds for the
purchase includes $7 million in bank borrowings, $17
million from the sale of Applicant's common stock,
and $4 million from the sale of Applicant's preferred
stock. All of Applicant's preferred stock would be
purchased by a subsidiary of Baldwin-United Corporation, Cincinnati, Ohio ("Baldwin"), a diversified financial conglomerate engaged in various nonbanking
activities.4 The preferred stock, which is nonvoting,
would pay a cumulative annual dividend of 14.5 percent. Baldwin's perferred stock investment would
represent approximately 19 percent of Applicant's
total equity.
Applicant's common stock will be purchased by a
number of individuals and companies. Four of these
companies ("Investors") will obtain funds to purchase
Applicant's voting common stock5 through an investment by Baldwin of $2.5 million in the nonvoting
preferred stock of each of the Investors. In each case,
Baldwin's preferred stock investment would represent
less than 25 percent of each Investor's total equity.6
The preferred stock, which must be redeemed by each
of the investor companies at the expiration of fifteen
years, would pay a cumulative annual dividend of 15
percent. The Investors could redeem the preferred
stock at any time.
By order dated October 14, 1982, the Board denied a
previous application by Applicant to acquire Bank. In
denying that application the Board found that the debt
servicing requirements and substantial arrearage in
3. The relevant banking market is approximated by the Cincinnati
Ranally Metro Area. Market data are as of June 30, 1981.
4. Baldwin, which became a bank holding company as a result of
the 1970 Amendments to the act, divested its banking subsidiaries in
December 31, 1980.
5. The Investors together would control approximately 74 percent
of Applicant's common shares. Two of the investors would each
acquire 16 percent of Applicant's voting shares. The remaining two
investors would each acquire 21 percent.
6. Specifically, Baldwin's equity share in the Investors would be
22.6, 17.4, 24.6, and 5.4 percent, respectively.
Legal Developments
preferred stock dividends did not allow Applicant
sufficient financial flexibility to serve as a source of
strength to its subsidiary Bank in the future. In addition, the previous proposal involved an investment by
Baldwin in non-voting preferred stock of Applicant,
representing 67 percent of Applicant's total equity.
The Board expressed concern that this investment was
inconsistent with the Board's July 8, 1982, Policy
Statement on non-voting equity investments
(12 CFR § 225.143) ("Policy Statement"), and that the
size and structure of Baldwin's investment could give
Baldwin the ability to exercise a controlling influence
over Applicant within the meaning of the act.
The Board believes that Applicant's revised proposal addresses the concerns raised by the Board in its
consideration of Applicant's initial application. Specifically, Applicant's acquisition debt will be reduced by
$8 million and its total capital increased by $2 million.
In addition, the purchase price of Bank has been
reduced by $2 million. In view of the restructuring of
the proposal, the Board's judgment is that Applicant
will have sufficient financial resources to service its
debt and the preferred stock dividends and serve as a
source of financial strength to its subsidiary bank in
the future. Thus, the financial and managerial resources of Applicant and Bank are considered generally satisfactory and their future prospects appear favorable.
Baldwin's preferred stock investment in Applicant
is well below the 25 percent guideline mentioned in the
Board's Policy Statement and specified by the Board
in prior cases as an acceptable level for non-voting
equity investments.7 In addition, Applicant's Articles
of Incorporation have been modified to eliminate those
provisions that the Board previously determined
would provide Baldwin with a number of rights that
are otherwise only available through the ownership of
voting shares. Similarly, an agreement with Applicant's shareholders contained in the initial application,
which would have given Baldwin the ability to affect
the disposition of control of Applicant, has been
eliminated.
AmeriTrust contends that Baldwin's investment of
$2.5 million in the non-voting preferred stock of each
of the Investors amounts to an indirect investment by
Baldwin in Applicant. On this basis, it contends that
Baldwin's investment in Applicant has actually increased from $10 million in the previous application to
$14 million in this application. Because an investment
775
of $14 million, if aggregated, would equal 67 percent of
Applicant's total equity, AmeriTrust asserts that Baldwin's total investment in Applicant would violate the
Board's Policy Statement.
In the Board's judgment, Baldwin's purchase of
Investor's preferred stock is not equivalent to an
indirect investment in Applicant by Baldwin. The
purpose of Baldwin's investment in Investors is to
facilitate their purchase of Applicant's stock, and
there is no evidence in the record to show that the
Investors are acting for or at the behest of Baldwin or
are controlled by Baldwin, or that Baldwin has assumed the economic risk of gain or loss in connection
with the Investors' purchase of Applicant's common
shares. The Investors are not related to one another
through common ownership or control or by management interlocks. Each is an existing, independent
business entity, which has independently elected to
make an investment in Applicant. There are no agreements or understandings between any of the Investors
and Baldwin as to the voting or disposition of the
Investors' shares of Applicant or with respect to any
other matter involving Applicant or its management
and policies. The dividend on Baldwin's investment in
the preferred stock of the Investors is not linked in any
way to the earnings of Applicant or Bank, and the
Investors have the right to redeem Baldwin's preferred
stock at any time with no preference based on Applicant's or Bank's performance. There is no requirement that Baldwin be bought out upon a sale by an
Investor of its common stock in Applicant or upon a
liquidation of Applicant. In light of the foregoing, the
Board does not believe that Baldwin's interest in the
Investors should be aggregated with Baldwin's direct
interest in Applicant's preferred stock for purposes of
determining Baldwin's total equity interest in Applicant under the Policy Statement.8
Applicant does not propose to make any specific
changes in the services currently provided by Bank. In
this connection, the Board has received comments
from a number of Cincinnati groups indicating their
belief that local ownership of Bank will enhance its
ability to serve the banking needs of the community.
The Board believes that considerations relating to the
8. The Board does not view Baldwin's investment in each of the
Investors as providing the "formalized structure" or common control
that would make the Investors an association or company under the
act. Letter, dated September 13, 1977, from the Secretary of the
Board to John P. Roemer, affirmed sub nom Central Bank v. Board of
Governors, No. 77-193) (D. C. Cir. Feb. 1, 1979); "WISCUB, Inc.",
6 4 FEDERAL RESERVE B U L L E T I N 4 0 ( 1 9 7 8 ) a n d 6 5 FEDERAL RESERVE
7. See " V a l l e y V i e w B a n c s h a r e s " 61 FEDERAL RESERVE BULLE-
BULLETIN 773 (1979); Savings BankShares Inc., 65 FEDERAL RE-
TIN 676 (1975); "Security Bancorp, Inc.", 66 FEDERAL RESERVE
BULLETIN 977 (1980); "Panhandle Aviation, Inc.", Board Order,
December 23, 1980. See also letter from William W. Wiles, Secretary
of the Board, to J. A. Maurer, President, Security Corp., Duncan,
Oklahoma, June 23, 1982.
SERVE B U L L E T I N 7 6 7 ( 1 9 7 9 ) ; S Y B C o r p o r a t i o n , 6 3 F E D E R A L R E S E R V E
BULLETIN 587 (1977); C u b a n c C o r p o r a t i o n , 62 FEDERAL RESERVE
BULLETIN 792 (1976); and CU Bank Shares, Inc., 62 FEDERAL
RESERVE BULLETIN 364 (1976). Letter of November 17, 1978, from
the Secretary of the Board to William C. Beaman.
776
Federal Reserve Bulletin • December 1982
convenience and needs of the community to be served
are consistent with approval. Accordingly, the Board
has determined that consummation of the transaction
would be consistent with the public interest and that
the application should be approved.
On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be made before the thirtieth calendar
day following the effective date of this Order or later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of
Cleveland, acting pursuant to delegated authority.
By order of the Board of Governors, effective
November 29, 1982.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Teeters, and Gramley. Absent and not voting: Governors Wallich and Rice.
(Signed)
[SEAL]
Associate
JAMES M C A F E E ,
Secretary of the Board.
Orders Under Section 4 of the Bank Holding
Company Act
Citicorp,
New York, New York
Order Conditionally Approving Application to
Engage in Certain Futures Commission Merchant
Activities
Citicorp, New York, New York, a bank holding company within the meaning of the Bank Holding Company Act of 1956, as amended (12 U.S.C. § 1841 et seq.),
has applied for the Board's approval, under section
4(c)(8) of the act (12 U.S.C. § 1843(c)(8)) and section
225.4(b)(2) of the Board's Regulation Y (12 CFR
§ 225.4(b)(2)), to engage through its subsidiary, Citicorp Futures Corporation, New York, New York
("CFC"), in acting as a futures commission merchant
(an "FCM") for nonaffiliated persons, in the execution and clearance of certain futures contracts on
major commodity exchanges. Such contracts would
cover bullion, foreign exchange, U.S. Government
securities, and negotiable money market instruments.
Notice of the application, affording interested persons an opportunity to submit comments and views on
the relation of the proposed activity to banking and on
the balance of the public interest factors regarding the
application has been duly published (47 Federal Register 40486 (1982)). The time for filing comments and
views has expired, and the Board has considered the
application and all comments received in light of the
public interest factors set forth in section 4(c)(8) of the
act.
Applicant, with consolidated assets of $120.1 billion, is the largest banking organization in New York
and the second largest in the U.S. and controls three
subsidiary banks—two in New York and one in South
Dakota—with aggregate deposits of $74.5 billion.1
Applicant has recently received approval to establish a
de novo bank in Delaware. Applicant, directly and
through certain of its subsidiaries, engages in a broad
range of permissible banking-related activities
throughout the United States.
The Board recently approved applications by J. P.
Morgan & Co. Incorporated, New York, New York
("Morgan"), and Bankers Trust New York Corporation, New York, New York ("Bankers"), each a bank
holding company within the meaning of the act, to
engage in FCM activities.2 Applicant's proposal generally parallels the applications submitted by Morgan
and Bankers, and the characteristics of Morgan and
Bankers on which the Board relied in considering
those applications generally are shared by Applicant.
Accordingly, the Board considers it appropriate to
examine Applicant's proposal within the same framework the Board used to consider the applications of
Morgan and Bankers.
Closely Related to Banking
In order to approve an application submitted pursuant
to section 4(c)(8) of the act, the Board is first required
to determine that the proposed activity is closely
related to banking or managing or controlling banks. In
approving the applications of Morgan and Bankers,
the Board determined that the proposed FCM activities with respect to the contracts involved in the
applications were closely related to banking.3 Upon
consideration of all the facts of record, the Board has
determined, for the reasons explained below, that with
one exception CFC's proposed activities as an FCM,
with respect to the contracts involved in this application, would also be closely related to banking.
Bullion and Foreign Exchange. In the Board's Or-
der approving the Morgan and Bankers applications,
it was noted that the Board had determined previously that FCM activities or their equivalent, with
respect to bullion and foreign exchange, were closely related to banking. The Board made these earlier
1. All banking data are as of June 30, 1982.
2. "J.P. Morgan & Co. Incorporated", 68 FEDERAL RESERVE
BULLETIN 514 (1982); "Bankers Trust New York Corporation", 68
FEDERAL RESERVE BULLETIN 651 (1982).
3. Id.
Legal Developments
determinations in connection with applications submitted by Republic New York Corporation, New
York, New York,4 and Standard and Chartered
Banking Group Ltd., London, England.5 Consequently, the Board now has determined on four
occasions that acting as an FCM for bullion or
foreign exchange is closely related to banking. Upon
examination of the record, it appears that Applicant's situation is substantially similar to those
presented previously. In particular, Citicorp is a
leading dealer in both the spot and forward bullion
markets; it offers bullion deposits and loans, and is
the largest privately owned storer of bullion in the
United States. Thus, FCM activities in bullion on
the part of CFC would appear to complement Citicorp's other activities in the bullion market. In
addition, Citibank, N.A., Applicant's principal
banking subsidiary, is a leading participant in the
cash and forward markets for foreign exchange,
with total profits from this activity of $265 million
during 1981. Since Citicorp/Citibank already trade in
the cash and forward markets in bullion and foreign
exchange for their customers, acting as an FCM in
futures markets for the same commodities would
appear to be an "integral adjunct" to these present
services. Finally, it is reasonable to assume that
market participants for whom Citicorp/Citibank
trade would regard futures contracts in bullion and
foreign exchange as the functional equivalent of
forward contracts for some purposes. Accordingly,
the proposed activity could be considered fundamentally a substitute for other services Applicant
already provides. On this basis, the Board concludes that Applicant's proposal to act as an FCM
for bullion and foreign exchange is closely related to
banking.
Government
Securities
and Money Market Instru-
ments. Applicant's proposal also involves the execution and clearance of futures contracts covering
U.S. bonds and Treasury bills, GNMA securities,
and negotiable money market instruments, particularly domestic and Eurodollar CDs.
As with the Morgan and Bankers applications, the
Board has examined the portion of the record of this
proposal that concerns FCM activities for U.S.
bonds, Treasury bills, GNMA securities, and negotiable money market instruments in light of Applicant's experience in related markets for these instruments. Citibank already trades in futures contracts
covering various U.S. Government and GNMA
4. "Republic New York Corporation", 63 FEDERAL RESERVE
BULLETIN 951 (1977).
5. "Standard and Chartered Banking Group, Ltd.", 38 Federal
Register
27552 (1973).
55
securities for its own account.6 Also, Citibank is a
founding member of the Association of Primary
Dealers, and has long been a major participant, for
the account of customers as well as its own account,
in the U.S. Government securities cash market.
Applicant's experience in these activities has provided it with useful expertise in areas that are
operationally or functionally similar to FCM activities for nonaffiliated persons in U.S. bonds, Treasury bills, and GNMA securities. Accordingly, the
Board concludes that the proposed FCM activities
for these instruments would be closely related to
banking.
The Board has also determined, in the circumstances of this case, that CFC's proposed activities
as an FCM with respect to futures contracts in
negotiable money market instruments would be
closely related to banking. Citibank has been an
active participant in the cash markets for various
money market instruments, and this experience has
provided Applicant with useful expertise in trading
the underlying instruments involved in these futures
contracts. Like futures contracts in U.S. Government securities, futures contracts in these instruments are used in large part to hedge against interest-rate risks associated with holding and trading
financial assets and liabilities. There appears to be
little basis for distinguishing between the operational or functional characteristics of FCM activities
with respect to contracts in these money market
instruments and those FCM activities with respect
to contracts in Government securities.
Pit Arbitrage. Citicorp has proposed one new activity, pit arbitrage, that was not included in the applications of Morgan and Bankers, and has not previously been considered by the Board in the context of
section 4(c)(8). Pit arbitrage involves the actions of
floor traders on commodities exchanges in taking
advantage of temporary price differentials between
futures contracts. Futures market spread positions
are taken in anticipation of favorable price movements which will subsequently enable traders to
close out positions at a profit. In view of the
discussion below, however, it is unnecessary for the
Board to determine whether pit arbitrage is closely
related to banking.
Incidental Activities. CFC also intends to provide
general research and advice on market conditions
and trading strategies; client account information
6. Citicorp has received the Board's approval to transfer certain of
these securities activities from Citibank to a nonbanking subsidiary of
Citicorp. "Citicorp Government Securities, Inc.", 68 FEDERAL RESERVE B U L L E T I N 2 4 8 ( 1 9 8 2 ) .
778
Federal Reserve Bulletin • December 1982
and reconciliation of trades; and communication
linkage between clients and the exchange floor in
connection with its proposed FCM activities. These
services would be offered as part of an integrated
package that would be provided to CFC's customers. None of these services would be offered separately and none would be provided on a fee basis.
The Board's Regulation Y (12 CFR § 225.4(a)) allows bank holding companies to engage in activities
that are incidential to closely related activities.
Incidental activities are those that are necessary to
the performance of closely related activities. (National Courier Ass'n
v. Board of Governors,
516
F.2d 1229, 1241 (D.C. Cir. 1975)). It appears that
with the exception of FCM "discount brokers",
FCMs generally provide these kinds of ancillary
services as an integral part of their overall business.
Moreover, it appears that the major corporations
and financial institutions which would make up
CFC's client base regard these services as essential.
Thus, the provision of such ancillary services would
be necessary to the successful operation of Applicant's FCM activities. Accordingly, the Board finds
that the provision of these services would be incidental to CFC's proposed FCM activities.
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 CFC, "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)).
Public Benefits
Consummation of the proposal would provide added
convenience to those clients of Applicant that trade in
the cash, forward, and futures markets for the commodities involved in this application. The Board expects that the de novo entry of CFC into the market for
FCM services would increase the level of competition
among FCMs already in operation. Accordingly, the
Board has concluded that the performance of the
proposed activities by CFC can reasonably be expected to produce benefits to the public.
Adverse Effects
In its Orders approving the applications of Morgan and
Bankers, the Board recognized that the activity of
trading futures contracts involves various types of
financial risks and potential conflicts of interest, and is
susceptible to anticompetitive and manipulative practices. The Board noted, however, that Congress has
addressed those types of possible adverse effects
through the passage of the Commodity Exchange Act,
as amended,7 and the creation of the Commodity
Futures Trading Commission ("CFTC"). The Board
also noted that the CFTC has promulgated regulations
to effectuate the provisions of the Commodity Exchange Act.8 Applicant has chosen to conduct the
proposed activities through a separately incorporated
subsidiary that would be subject to the Commodity
Exchange Act and CFTC regulation. The Board has
considered the impact of the applicable statutes and
regulation in its evaluation of the likelihood that significant adverse effects regarding conflicts of interest,
unsound banking practices, decreased or unfair competition, or undue concentration of resources would
develop in this case.
Conflicts of Interest. Conflicts of interest that could
be associated with this proposal fall into two broad
categories: those arising out of the general business
of engaging in FCM activities, and those arising out
of the particular circumstance of an FCM that is a
subsidiary of a bank holding company. Rules and
regulations promulgated and enforced by the CFTC
and the relevant futures exchanges substantially
reduce the possibility for significant conflicts in the
first category. In addition, CFC has committed to
time-stamp each order to the minute upon receipt,
and to time-stamp the order again at execution.
Moreover, CFC will execute orders in the sequence
in which they are received, except where the customer consents to delayed execution. The Board
concludes that the risk of conflicts of interest arising
from the general business of an FCM that may result
from consummation of the proposal as submitted is
not inconsistent with approval.
With respect to the second category of conflicts,
the Board believes that existing statutory and supervisory safeguards, together with Applicant's internal control procedures, will substantially reduce the
possibility of significant adverse effects. For example, section 23A of the Federal Reserve Act9 would
7. 7 U.S.C. §§ 1-24.
8. For example, CFTC regulations require FCMs to keep detailed
records on many aspects of FCM activities, such as segregation of
funds and investments made on behalf of customers, 17 C.F.R.
§§ 1.20, .25; prescribe protective procedures for such activities as
buying and selling contracts of two customers on opposite sides of the
same transactions, 17 CFR. § 1.39; and impose minimum financial and
related reporting requirements, 17 CFR §§ 1.10-.18.
9. 12 U.S.C. § 371c.
Legal Developments
require any extension of credit by Citibank to CFC
to be secured by collateral having a value equal to
100 percent or more of the extension of credit. In
addition, any loan from Citibank to CFC's customers would be subject to examination by the Comptroller of the Currency.
Furthermore, Applicant maintains internal procedures that generally prohibit disclosure among employees of Applicant and its subsidiaries of confidential information pertaining to customers,
whether received from customers or derived from
internal sources. Finally, as discussed below, the
circumstances of this application alleviate any substantial concern regarding the possibility of voluntary tying. Thus, there appears to be no significant
danger that conflicts associated with the fact that
CFC would be a bank holding company subsidiary
will develop under this proposal.
Unsound Banking Practices.
An FCM, clearing and
executing contracts for nonaffiliated persons, is generally exposed to several types of financial risks.
However, the Board finds that Applicant's competence, experience and resources equip it to deal with
these risks. Furthermore, the Board believes that
the Commodity Exchange Act and regulations by
the CFTC and the various commodity exchanges are
significant factors in ameliorating the general hazards of the FCM activities proposed in the application.10
As an FCM for nonaffiliated persons, CFC would
be contractually liable for nonperformance by a
customer of CFC on each futures contract traded by
CFC for that customer. Similarly, in some circumstances, CFC could be obligated to meet a margin
call delivered to a customer of CFC. Applicant and
its subsidiaries appear well prepared to deal with
these potential obligations. The risks that a customer of CFC would default on a contract or fail to meet
a margin call are credit risks of a type Citibank has
significant expertise in evaluating. In addition, the
record indicates that CFC would employ a high
degree of credit selectivity in choosing its customers, who will include institutional and commercial
clients of Citibank.
CFC would face another type of risk because its
membership in certain commodity exchange clearing associations could expose it to contingent liabil-
10. Among the provisions the Board has considered in this regard
are the CFTC's net capital requirements, 17 C.F.R. §§ 1.17(a),
.17(c)(2), .17(c)(3), .52(a), and the sections of the Commodity Exchange Act granting the CFTC authority to establish position limits
and to approve or disapprove daily price movement limits established
by domestic exchanges on futures contracts, 7 U.S.C. §§ 6a, 7a( 12).
779
ity for the contractual obligations due the association by all clearing members. This potential liability
exists through the assessment provisions of certain
clearing association guaranty funds into which all
clearing members must contribute. In evaluating
this element of risk to CFC, the Board has considered the effect of margin requirements and the level
of supervision and regulation imposed on the futures
trading industry by the CFTC, the exchanges and
their affiliated clearing associations. Clearing associations, in particular, have established various procedures that reduce the likelihood that this type of
liability would arise.
The degree of risk associated with providing FCM
services as a clearing member on a commodities
exchange can be increased through the practice of
certain exchanges or clearing associations of requiring the parent corporation of a clearing member to
also become a member of that exchange or clearing
association. Applicant has committed that CFC
shall not, without the prior consent of the Board,
become a clearing member of any exchange that
imposes such a requirement and has not waived that
requirement for Applicant.
In addition, the Board is concerned that the
performance of pit arbitrage services by CFC for its
own account would represent an unsound banking
practice. The Board has stated its view that bank
holding companies or their nonbanking subsidiaries
that take positions in futures contracts should do so
to reduce risk exposure and not to speculate.11
Clearly, pit arbitrage involves CFC trading for its
own account in a speculative manner. In the Board's
view, such speculation could pose significant financial risks for the parent bank holding company.
These risks could jeopardize the ability of a bank
holding company to be a source of strength to its
subsidiary banks. In this regard, the Board approved both the applications of Morgan and Bankers
in express reliance on the fact that the FCMs
involved there would not trade for their own account.12
Applicant argues that by engaging in pit arbitrage,
CFC will contribute to the efficient operation of
commodity markets, which will benefit market participants. Although some public benefits may be
associated with the pit arbitrage, the Board does not
believe such benefits are sufficient to outweigh the
significant adverse effects of such an activity. Accordingly, the Board concludes that the adverse
11. 12 C.F.R. § 225.142 (1982).
12. Indeed, the Board recently approved Applicant's proposal to
engage in FCM activities abroad on the basis of Applicant's commitment that it would not trade for its own account. "Citibank Overseas
I n v e s t m e n t C o r p . " , 6 8 FEDERAL RESERVE BULLETIN 671 (1982).
780
Federal Reserve Bulletin • December 1982
effects of pit arbitrage warrant denial of this aspect
of Applicant's proposal.
On the basis of all the facts of record, including
the limitations noted above, the Board has concluded that the inherent risks of providing FCM services
for nonaffiliated persons under the circumstances of
this proposal are manageable in view of the expertise and resources of Applicant and its subsidiaries,
the commitments entered into by Applicant and
CFC, and the regulatory environment in which the
FCM activities would be conducted.
Decreased
or Unfair Competition.
It is conceivable
that a commercial bank in Citibank's position could
exert pressure on its customers to use the services
of Citibank's affiliated FCM, or that a borrower
could believe that its use of an affiliated FCM could
result in more favorable credit terms for the borrower. As the Board noted in its Order approving the
Morgan and Bankers applications, compulsory tying
arrangements are prohibited by the act, and voluntary tying can take place only when a firm possesses
significant market power.13 However, as was the
case with Bankers and Morgan, it appears that
Applicant lacks the requisite market power for voluntary tying to .occur, in view of the substantial
competition among FCMs and in commercial lending. In addition, the Board notes that it is Applicant's corporate policy to explicitly instruct all
employees to sell services on the basis of the
services' own merits and to avoid any sales method
which could give a customer the impression that the
purchase of one service necessarily entails the purchase of services offered by an affiliate organization.
In addition, Applicant has committed that CFC will
advise each customer in writing that doing business
with CFC will not in any way affect any provision of
credit to that customer from Citibank or any other
subsidiary of Applicant.
Conclusion
On the basis of all the facts of record, including the
conditions mentioned above, the Board has determined that in the circumstances of this case, the
provision by CFC of the proposed FCM services to
nonaffiliated persons would not result in decreased or
unfair competition, conflicts of interests, unsound
banking practices, or undue concentration of resources in either commercial banking or the market for
FCM services. In considering this application, the
13. "Citicorp" (Citicorp Person-to-Person Financial Center of
C o n n e c t i c u t , I n c . ) 67 FEDERAL RESERVE BULLETIN 443, 4 4 6 (1981).
Board has placed particular reliance on the following
commitments and conditions:
1. CFC shall not trade for its own account.
2. The instruments and precious metals upon which
the proposed futures contracts are based are essentially financial in character and the contracts are of a
type that a bank may execute for its own account.
3. CFC shall have an initial capitalization that is in
substantial excess of that required by CFTC regulations, and will maintain fully adequate capitalization.
4. CFC and Citibank have entered into a formal
service agreement that specifices the services that
Citibank will supply to CFC. These services include
the assessment of customer credit risk and continuous monitoring of customer positions and the status
of customer margin accounts.
5. Through its prosposed service agreement with
Citibank, CFC will be able to assess customer credit
risks, and will take such assessments into consideration in establishing appropriate position limits for
each customer, both with respect to each type of
contract and with respect to the customer's aggregate position for all contracts.
6. CFC shall not, without the prior consent of the
Board, become a clearing member of any exchange
whose rules require the parent corporation of a
clearing member to also become a clearing member,
unless the requirement is waived with respect to
Applicant.
7. CFC has committed that it will, in addition to
time-stamping orders of all customers to the nearest
minute, execute all orders, to the extent consistent
with customers' specifications, in strictly chronological sequence, and that it will execute all orders
with reasonable promptness with due regard to
market conditions.
8. Applicant and its subsidiaries have demonstrated
expertise and established capability in the cash,
forward, or futures markets for each of the contracts
involved.
9. Applicant will require CFC to advise each of its
customers in writing that doing business with CFC
will not in any way affect any provision of credit to
that customer by Citibank or any other subsidiary of
Applicant.
10. Applicant is adequately capitalized to engage in
additional nonbanking activities.
11. CFC will not extend credit to customers for the
purpose of meeting initial or maintenance margin
required of customers, subject to the limited exception of posting margin on behalf of customers in
advance of prompt reimbursement.
Based upon the foregoing and other considerations
reflected in the record, the Board has determined that
Legal Developments
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, which the Board is required to
consider under section 4(c)(8) of the act, is favorable.
Accordingly, the application is hereby approved.
This determination is subject to the conditions set
forth in the Board's Order and section 225.4(c) of
Regulation Y and the Board's authority to require such
modification or termination of the activities of a holding company or any of its subsidiaries as the Board
finds necessary to assure compliance with the provisions and purposes of the act and the Board's regulations and orders issued thereunder, or to prevent
evasion thereof.
The proposed activities shall not commence 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.
By order of the Board of Governors, effective
November 30, 1982.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Teeters, and Gramley. Absent and not voting: Governors Wallich and Rice.
(Signed)
[SEAL]
Associate
JAMES MCAFEE,
Secretary
of the
Board.
Florida Coast Banks, Inc.,
Pompano Beach, Florida
Midlantic Banks, Inc.,
Edison, New Jersey
Order Approving Acquisition
Midlantic Trust Company,
of Florida
N.A.
Coast
Florida Coast Banks, Inc., Pompano Beach, Florida
("Florida Coast"), and Midlantic Banks, Inc., Edison,
New Jersey ("Midlantic"), both bank holding companies within the meaning of the Bank Holding Company Act (12 U.S.C. § 1841 et seq.), have applied for
the Board's approval, under section 4(c)(8) of that act
and section 225.4(b) of the Board's Regulation Y
(12 CFR § 225.4(b)), to acquire, through a joint venture to be known as Midlantic/Florida Coast Holdings,
Edison, New Jersey ("Holdings"), Florida Coast Midlantic Trust Company, N.A., Lighthouse Point, Florida ("Trust Company"), a de novo trust company.
Holdings will not engage in any activity and will be
utilized only to hold shares of Trust Company. Trust
Company will engage in the functions and activities
781
that have been found by the Board to be closely
related to banking (12 CFR § 225.4(a)(4)).
Notice of the applications, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the act.
The time for filing comments and views has expired
and the Board has considered the applications and all
comments received in light of the factors set forth in
section 4(c)(8) of the act.
Midlantic controls seven banks with aggregate deposits of about $3.2 billion and is the second largest
bank holding company in New Jersey.1 Through its
nonbanking subsidiaries, Midlantic is engaged in the
activities of mortgage banking, equipment leasing,
factoring, and holding overseas investments. Midlantic also engages in the activity of providing trust
services through its subsidiary banks. Midlantic manages $1.4 billion in trust assets through its lead bank.
Florida Coast controls three banks with aggregate
deposits of $358.9 million and is the twentieth largest
bank holding company in Florida. Florida Coast also
engages in the activity of providing trust services
through its subsidiary banks. Florida Coast manages
less than $100 million in trust assets through its lead
bank, which represents less than 2 percent of the trust
assets administered by banking organizations in the
Miami-Fort Lauderdale market.2 Florida Coast would
transfer the managed assets of its lead bank to Trust
Company within one year of consummation of the
proposal.
Florida Coast and Midlantic currently provide trust
services in the banking markets in Florida and New
Jersey in which their subsidiary banks operate. This
proposal contemplates the provisions of trust services
by Trust Company in the Miami-Fort Lauderdale
market, where Florida Coast currently conducts its
trust operations. Midlantic does not provide trust
services in that market or in any banking market where
Florida Coast operates. The effect of consummation of
this proposal, therefore, would be the substitution of
Trust Company for Florida Coast in the relevant
markets and no existing competition would be eliminated.
It also appears that consummation of this proposal
would not have a substantial adverse effect on potential competition. In this regard, the Board does not
consider Florida Coast to be a likely entrant into the
New Jersey markets served by Midlantic, given Florida Coast's relatively small size, and the location and
nature of its customer base.
1. Banking data for Midlantic and Florida Coast are as of June 30,
1982.
2. The Miami-Fort Lauderdale market consists of Dade and
Broward Counties.
782
Federal Reserve Bulletin • December 1982
While Midlantic might be considered a more likely
entrant into the Florida markets served by Florida
Coast, its loss as a potential entrant cannot be considered significant within the context of the Miami-Fort
Lauderdale market. The Miami-Fort Lauderdale market is not concentrated. Currently, 39 banking organizations offer trust services in that market and administer $7.9 billion in trust assets. There are also numerous
potential entrants into the market since barriers to
entry into the trust business are low. Moreover, the
Board regards it unlikely that Midlantic would enter
the Miami-Fort Lauderdale market de novo absent this
joint venture. Midlantic has stated that it has little
name recognition in Florida and would have difficulties entering that market in any significant fashion.
The loss of Midlantic as a potential entrant, therefore,
would have little effect on potential competition in the
market. Accordingly, the Board concludes that consummation of the proposed joint venture would not
adversely affect potential competition in the relevant
market.
Consummation of this proposal may be expected to
increase competition in the Miami-Fort Lauderdale
market and increase the convenience of the communities served. The combination of Midlantic's expertise
in the provision of trust services with Florida Coast's
knowledge of the relevant market is likely to result in
an institution capable of competing for trust services
with the large banking organizations in the relevant
market. The proposal may also provide greater convenience to Midlantic's trust customers who retire to
Florida.
There is no evidence in the record to indicate that
consummation of the proposal would result in undue
concentration of resources, decreased or unfair competition, conflicts of interests, unsound banking practices, or other adverse effects on the public interest.3
Accordingly, the Board concludes that the balance of
public interest factors that it must consider under
section 4(c)(8) of the act favors approval. In addition,
the financial and managerial resources and future
prospects of Florida Coast, Midlantic, and Trust Company are considered consistent with approval of the
applications and the Board has determined that the
applications should be approved.
3. In Lewis v. BT Investment Managers, Inc., 447 U.S. 27 (1980),
the Supreme Court held a provision of Florida law (Fla. Stat. Ann.
§ 658.29 (West 1981 Supp.)) that generally prohibited an out-of-state
bank or bank holding company from acquiring a trust company or
investment advisory company in Florida to be unconstitutional at least
insofar as it related to the acquisition of an investment advisory
company. The rationale of that decision is directly applicable to the
trust company prohibitions of section 658.29. Accordingly, the Board
concludes that section 658.29 does not bar Midlantic's participation in
this proposal. In this regard, the state of Florida has not objected on
the basis of this statute to previous applications of this type.
This determination is subject to the conditions set
forth in section 225.4(c) of Regulation Y and to the
Board's authority to require such modification or
termination of the activities of a bank holding company or its subsidiaries as the Board finds necessary to
assure compliance with the provisions and purposes of
the act and the Board's regulations and orders issued
thereunder or to prevent evasions of them.
The transaction shall not be made 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 Banks of New York or
Atlanta.
By order of the Board of Governors, effective
November 2, 1982.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Teeters, Rice, and Gramley.
(Signed)
[SEAL]
Associate
JAMES MCAFEE,
Secretary
of the
Board.
Hongkong and Shanghai Banking Corporation,
Hong Kong
Kellett, N.V.,
Curacao, Netherlands Antilles
HSBC Holdings, B.V.,
Amsterdam, The Netherlands
Marine Midland Banks, Inc.,
Buffalo, New York
Order Approving Acquisition of Wardley Marine
International Investment Management Ltd. and
Commencement of Investment Advisory Activities
The Hongkong and Shanghai Banking Corporation
("HSBC"), Hong Kong; Kellett, N.V., Curacao,
Netherlands Antilles; HSBC Holdings, B.V. ("Holdings"), Amsterdam, The Netherlands; and Marine
Midland Banks, Inc. ("MMBI"), Buffalo, New York
(collectively referred to as "Applicants"), bank holding companies within the meaning of the Bank Holding
Company Act, have applied for the Board's approval
under section 4(c)(8) of the act (12 U.S.C. § 1843(c)(8))
and section 225.4(b)(1) of the Board's Regulation Y
(12 CFR § 225.4(b)(1)), to engage de novo in investment advisory activities through a New York office of
Wardley Marine International Investment Management, Ltd. ("Wardley Marine"), London, England.
Such activities have been determined by the Board to
be closely related to banking (12 CFR § 225.4(a)(5)).
MMBI has also applied for the Board's approval under
Legal Developments
section 4(c)(13) of the Act (12 U.S.C. § 1843(c)(13»
and section 211.5(c)(2) of the Board's Regulation K
(12 CFR § 211.5(c)(2)) to acquire 50 percent of the
voting shares of Wardley Marine. HSBC will indirectly hold the remaining 50 percent of the shares of
Wardley Marine through various foreign subsidiaries.
Notice of the applications, affording opportunity for
interested persons to submit comments and views on
the public interest factors has been duly published (47
Federal Register 34040 (1982)). The time for filing
comments and views has expired and the Board has
considered the applications and all comments received
in light of the standards set forth in sections 4(c)(8) and
(13) of the act.
HSBC, a bank organized under the laws of Hong
Kong, is the 31st largest banking organization in the
world with total assets of approximately $52.3 billion.1
HSBC engages in a broad range of financial and
commercial services directly and indirectly through
over 900 offices worldwide. Through Kellett and Holdings, HSBC owns 51 percent of the shares of MMBI,
which is the 14th largest commercial banking organization in the United States with total assets of $18.8
billion. MMBI, through its subsidiary bank, offers a
full range of banking and trust services from nearly 300
offices. MMBI also engages in commercial lending,
leasing, and credit-related insurance underwriting activities under section 4(c)(8) of the act.
Wardley Marine, a newly-formed company organized under the laws of the United Kingdom, will olfer
investment advisory services worldwide. Under section 211.5(d)(8) of Regulation K, a bank holding company such as MMBI may invest in a foreign company
that engages in providing investment, financial or
advisory services if the foreign company does no
business in the United States except as an incident to
its international business.
Wardley Marine proposes to establish an office in
New York, New York, from which it will offer investment advisory services permissible under Regulation
Y for domestic bank holding companies. Upon the
establishment of the New York office, Wardley Marine would be engaged in activities in the United States
that are not incidental to its foreign business within the
meaning of Regulation K. However, the Board in
other contexts has determined that a bank holding
company subsidiary may engage in activities on the
basis of more than one provision of the act, (12 CFR
§ 225.123(b)).
In this case, neither HSBC nor MMBI proposes to
engage through Wardley Marine in activities in the
United States on the basis of exemptions provided in
1. Data are as of December 31, 1981.
783
Regulation K. Applicants have applied for approval of
Wardley Marine's U.S. activities under the appropriate provision of Regulation Y. Inasmuch as all of the
foreign and domestic activities of Wardley Marine are
permissible for bank holding companies and could be
conducted by separate subsidiaries, and in the absence
of any evidence of adverse effects resulting from the
structure of the transaction, the Board concludes that
MMBI may engage in permissible nonbanking activities in the United States under section 4(c)(8) through
a foreign subsidiary held pursuant to section 4(c)(13) of
the act and Regulation K.2 This determination is
subject to the condition that HSBC and MMBI receive
the prior approval of the Board before Wardley Marine
engages in any additional activities in the United
States.
With respect to its New York activities, Wardley
Marine will engage in investment advisory activities
including offering portfolio investment advice to individuals, corporations, governmental entities and other
institutions on a discretionary and nondiscretionary
basis. In order to approve this application, the Board
must find that Applicants' performance of these activities through Wardley Marine "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)). The
Board notes that Wardley Marine will offer the advisory services through a de novo office serving the entire
United States. Accordingly, approval of the applications would not result in any adverse effects on
existing or potential competition and would provide
the public with an additional source of investment
advice. In addition, there is no evidence in the record
to indicate that approval of this proposal would result
in any other adverse effects, such as undue concentration of resources, unfair competition, conflicts of
interests, or unsound banking practices.
Based upon the foregoing and other considerations
reflected in the record, the Board has determined that
the balance of public interest factors that the Board is
required to consider under section 4(c)(8) is favorable.
In addition, the Board concludes that the acquisition
by MMBI of Wardley Marine is in the public interest
and not at variance with the purposes of the act.
Accordingly, the applications are hereby approved.
These determinations are subject to the conditions set
forth in section 225.4(c) of Regulation Y and section
2. Because Wardley Marine is controlled by HSBC, an affiliate of
MMBI, it is also considered a subsidiary of MMBI for purposes of
Regulation K (12 C.F.R. § 211.2(p)).
784
Federal Reserve Bulletin • December 1982
211.5(b) of Regulation K to require termination or such
modification of the activities of a holding company or
any of its subsidiaries as the Board finds necessary to
assure compliance with the provisions of the act and
the Board's regulations and orders issued thereunder
or to prevent evasion thereof.
The proposed investment by MMBI and the proposed activities of Applicants shall commence not
later than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of New
York, pursuant to authority hereby delegated.
By order of the Board of Governors, effective
November 18, 1982.
Voting for this action: Vice Chairman Martin and Governors Partee, Teeters, Rice, and Gramley. Absent and not
voting: Chairman Volcker and Governor Wallich.
(Signed)
[SEAL]
WILLIAM W . WILES,
Secretary
of the
Board.
Imperial Bancorp,
Ingle wood, California
Order Approving Data Processing
Activities
Imperial Bancorp, Inglewood, California, a bank holding company within the meaning of the Bank Holding
Company Act, has applied for the Board's approval
under section 4(c)(8) of the act (12 U.S.C. § 1843(c)(8))
and section 225.4(b)(2) of the Board's Regulation Y
(12 CFR § 225.4(b)(2)) to recommence the activity of
providing packaged data processing and transmission
services for banking, financial and economic data for
installation on the premises of customers that are
depository or similar institutions, through its subsidiary, Imperial Automation, Inc., Costa Mesa, California. Such activities have been determined by the
Board to the closely related to banking (12 CFR
§ 225.4(a)(8)(ii)).
Notice of the application, affording interested persons an opportunity to submit comments and views on
the public interest factors, has been duly published (47
Federal Register 38986 (1982)). The time for filing
comments and views has expired, and the application
and all comments received have been considered in
light of the public interest factors set forth in section
4(c)(8) of the act.
Applicant controls one banking subsidiary with total
deposits of $1.2 billion.1 By this application, Applicant
seeks to resume activities it commenced de novo,
based upon approval it received on May 21, 1981, from
the Federal Reserve Bank of San Francisco acting
under delegated authority. Because of a misinterpretation of the scope of the Board's data processing
regulation in effect on that date, one aspect of the
activities commenced by Applicant exceeded those
then permissible for a bank holding company. When
Applicant was advised of the Board's position, Applicant immediately ceased the activity in question.
Upon approval by the Board of an amendment to
Regulation Y expanding the scope of permissible data
processing activities to include the activity in question, (47 Federal Register 37368 (1982)), Applicant
submitted this application.
Section 4(c)(8) of the act provides that the Board
may approve a bank holding company's application to
acquire a nonbanking company or engage in a nonbanking activity only after the Board has determined
that performance of the proposed activity by a nonbanking subsidiary of a bank holding company can
reasonably be expected to provide benefits to the
public such as greater convenience, increased competition, or gains in efficiency, that outweigh possible
adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of
interests, or unsound banking practices. In acting on
an application under section 4(c)(8) of the act and
Regulation Y to engage in activities previously commenced in a situation where required prior Board
approval was not obtained, the Board applies the same
standards that it would apply to an application to
commence such activities initially. In analyzing such
an application, the Board considers the competitive
effects of such a proposal both at the time of the
commencement of the activities and at the time of the
application to recommence such activities.
In this case, consummation of the proposal will add
an additional competitor to the market for data processing services because the activities were commenced by Applicant de novo and this application is to
continue to engage in activities commenced de novo.
Because de novo expansion provides an additional
source of competition, the Board views such expansion as being procompetitive. Accordingly, the Board
finds that the de novo nature of this proposal represents a public benefit.2
In acting on this application, the Board has considered Applicant's actions to conform its operations to
the act. Upon being notified of the Board's position,
Applicant promptly ceased the then impermissible
2. "Virginia National Bankshares, Inc.", 66 FEDERAL RESERVE
BULLETIN 668, 672 (1980); "BankAmerica Corporation (Decimus
Corporation)",
66 FEDERAL
RESERVE
BULLETIN
511,
514
(1980);
"Citicorp (Person-to-Person Financial Center of Connecticut, Inc.)"
1. Deposit data are as of May 31, 1982.
65 FEDERAL RESERVE BULLETIN 507, 510 (1979).
Legal Developments
data processing activity and thereafter cooperated
fully with Board staff to resolve this matter. In addition, the Board notes that Applicant took action to
conform its operations to the act by filing this application. In light of these facts and other information in the
record evidencing Applicant's intent to comply with
the requirements of the act, the Board has determined
that the circumstances surrounding the violation do
not reflect so adversely upon Applicant's management
as to warrant denial of the application.
In its evaluation of the financial resources of Applicant, the Board has considered the fact that this
application was filed to recommence activities for
which most of the required capital expenditures have
already been made and the necessary management
resources have been put in place based upon the
earlier Federal Reserve approval. The Board has also
considered Applicant's projections that these activities will make a positive contribution to its earnings
and commitments by Applicant that further expenditures in connection with these activities are expected
to be minimal. In the context of the specific facts and
circumstances of this case, the Board gave particular
weight to Applicant's assertion that it would likely lose
all or substantially all of its investment in Imperial
Automation if this application were denied.
With respect to the other factors required to be
considered, the Board finds no evidence in the record
indicating that Applicant's data processing activities
have resulted in, or would result in, any undue concentration of resources, decreased or unfair competition,
conflicts of interests, unsound banking practices, or
other adverse effects.
Based upon the foregoing and other considerations
reflected in the record, the Board has determined that
the balance of the public interest factors the Board is
required to consider under section 4(c)(8) is favorable.
Accordingly, the application is hereby approved. This
determination is subject to the conditions set forth in
section 225.4(c) of Regulation Y and to the Board's
authority to require such modification or termination
of the activities of a holding company or any of its
subsidiaries as the Board finds necessary to assure
compliance with the provisions and purposes of the
Act and the Board's regulations and orders issued
thereunder or to prevent evasion thereof.
By order of the Board of Governors, effective
November 29, 1982.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Teeters, and Gramley. Absent and not voting: Governors Wallich and Rice.
(Signed)
[SEAL]
Associate
JAMES MCAFEE,
Secretary
of the
Board.
785
Old Colony Co-Operative Bank,
Providence, Rhode Island
Order Approving
Retention
of De Novo
Branch
Old Colony Co-Operative Bank, Providence, Rhode
Island ("Applicant"), a Rhode Island mutual buildingloan association which is a bank holding company
within the meaning of the Bank Holding Company
Act, has applied for the Board's approval under section 4(c)(8) of the act (12 U.S.C. § 1843(c)(8)) and
section 225.4(b)(2) of the Board's Regulation Y
(12 CFR § 225.4(b)(2)), to continue to engage in the
activities of a mutual building-loan association at a
branch office in Woonsocket, Rhode Island. Although
the Board has not added the operation of a Rhode
Island mutual building-loan association to the list of
activities specified in section 225.4(a) of Regulation Y
as generally permissible for bank holding companies,
the Board has determined by order that the operation
of such an institution is closely related to banking in
Rhode Island and approved Applicant's proposals to
become a bank holding company and to continue to
engage in the activities of a mutual building-loan
association in 1972, and to acquire the Mayflower
Savings and Loan Association ("Mayflower"), a
Rhode Island mutual building-loan association, in
1980.1
Notice of the application, affording opportunity for
interested persons to submit comments, has been duly
published (47 Federal Register 25204 (1982)). The time
for filing comments and views has expired and the
Board has considered the application and all comments received in light of the factors set forth in
section 4(c)(8) of the act.
Applicant (consolidated assets of $696.5 million), a
state-chartered, FSLIC-insured, mutual building-loan
association, is a one bank holding company by virtue
of its control of Newport National Bank, Newport,
Rhode Island (deposits of $52.7 million).2 As of
June 30, 1981, Applicant was the second largest thrift
institution and the fifth largest commercial banking
organization in Rhode Island.
As noted above, the Board first approved Applicant's request to become a bank holding company and
to continue to engage in the activities of a mutual
1. "Old Colony Co-Operative Bank," 58 FEDERAL RESERVE BULLETIN 417 (1972); "Old Colony Co-Operative Bank", 66 FEDERAL
RESERVE BULLETIN 665 (1980). Under section 333 of the Garn-St
Germain Depository Institutions Act, Applicant is not a "bank"
within the meaning of section 2(c) of the Bank Holding Company Act
because its accounts are insured by the Federal Savings and Loan
Insurance Corporation.
2. All financial data are as of December 31, 1981, unless otherwise
indicated.
786
Federal Reserve Bulletin • December 1982
building-loan association in Rhode Island in 1972. This
application requests Board approval of Applicant's
retention of a branch office opened de novo on July 10,
1972, without the Board's prior approval, in violation
of Regulation Y. Upon examination of all the facts of
the record and the circumstances of this application,
the Board's view is that the violation was inadvertent.
In acting on this application, the Board has taken into
consideration the fact that Applicant, upon becoming
aware of the existence of the violation, immediately
consulted the Federal Reserve Bank of Boston to
determine what actions would be necessary to comply
with the act. Applicant has initiated a program to
monitor compliance with the act and the Board's
regulations to avoid any future violations. In addition,
no other compliance problems have been noted since
Applicant opened the de novo branch in 1972. In view
of Applicant's efforts to comply with the act, its
implementation of a compliance program, and its
compliance record since 1972, the Board is persuaded
that such a violation is unlikely to recur and that it
does not reflect so adversely on Applicant's managerial resources as to require denial of this application.
Under the act, the Board is required to assess the
public interest factors in each section 4(c)(8) application, including an application for a de novo branch of
an approved subsidiary. In making such an assessment
with respect to an application to retain activities where
necessary prior Board approval was not obtained, the
Board applies the same standards that it applies for the
commencement of such activities.
The Board has previously determined that the operation of a Rhode Island mutual building-loan association by a Rhode Island bank holding company is so
closely related to banking as to be a proper incident
thereto. In its 1972 approval of Applicant's application
to become a bank holding company and to continue to
engage in the activities of a mutual building-loan
association, the Board determined that, "in view of
the history of affiliation of mutual thrift associations
and commercial banks in Rhode Island, Applicant's
continuing to engage in the activities of a thrift institution is so closely related to Rhode Island banking as to
be a proper incident thereto."3 The Board reaffirmed
this determination in 1980.4 Since no evidence has
been presented to indicate that banking conditions
have substantially changed in Rhode Island since the
Board's last consideration of this issue, the Board
confirms its finding that the operation of a mutual
building-loan association is so closely related to banking in Rhode Island as to be a proper incident thereto.
3. "Old Colony Co-Operative Bank", 58 FEDERAL RESERVE BULLETIN 4 1 7 ( 1 9 7 2 ) .
4. "Old Colony Co-Operative Bank", 66 FEDERAL RESERVE BULLETIN 6 6 5 ( 1 9 8 0 ) .
Notwithstanding this general finding, the Board
must also consider the particular facts of this case to
determine whether the retention of this office can
reasonably be expected to produce benefits to the
public that outweigh possible adverse effects. Retention of this branch would have no significant effect on
competition because it is a de novo office. The Board
views de novo entry as procompetitive and a positive
public benefit because such entry provides an additional source of competition in a market.5
In considering similar applications involving the
affiliation of commercial banks and thrift institutions,
the Board has expressed its clear view that serious
adverse effects may result from tandem operation of
these two types of institutions.6 The Board's concern
in these cases is that such an affiliation would result in
a subversion of the purpose of the interest rate differential between commercial banks and thrift institutions. In First Financial, the Board stated that it would
not approve an application proposing the tandem
operation of commercial banks and thrifts. However,
in Heritage Banks, Inc., (66 FEDERAL RESERVE B U L LETIN 590 (1980)), the Board did not apply this principle and approved the tandem operation of the applicant's commercial banks with a thrift institution. The
Board found mitigating factors in Heritage Banks
which clearly indicated that the proposal was not a
device by the applicant to evade the differential. In
Heritage Banks, the proposed acquisition of the thrift
was not predicated upon the establishment of a tandem
relationship with a commercial bank. On the contrary,
the applicant had already received the Board's approval of the tandem operation of its commercial banks and
thrifts and was only seeking Board approval to retain a
branch office that had been inadvertently opened
without its prior approval. Moreover, the Board cited
the approval of the branch office by the Federal
Deposit Insurance Corporation and the appropriate
state authorities and the absence of any protests by the
authorities as factors mitigating any adverse factors
associated with the proposal. Similarly, the Board
does not believe that Applicant's proposal is an attempt to undermine the interest rate differential because Applicant had previously received Board approval to operate its thrift institutions in tandem with
its commercial banks and had inadvertently opened
the subject branch office without the Board's prior
approval. In addition, this branch office has been
approved by the Federal Savings and Loan Insurance
Corporation and the appropriate Rhode Island authorities without protest.
5. "Virginia National Bancshares, Inc.", 66 FEDERAL RESERVE
BULLETIN 668, 671 (1980).
6. "First Financial Group of New Hampshire, Inc.", 66 FEDERAL
RESERVE B U L L E T I N 5 9 4 ( 1 9 8 0 ) .
Legal Developments
There is no evidence of any other potential adverse
effects that might be associated with this proposal and
based upon the foregoing and other considerations
reflected in the record, the Board has determined that
the balance of public interest factors the Board is
required to consider under section 4(c)(8) favors approval of Applicant's retention of this particular
branch office. This determination is subject to the
conditions set forth in section 225.4(c) of Regulation Y
and to the Board's authority to require such modification or termination of the activities of a holding
company or any of its subsidiaries as the Board finds
necessary to assure compliance with the provisions
and purposes of the act and the Board's regulations
and orders issued thereunder, or to prevent evasion
thereof.
By order of the Board of Governors, effective
November 17, 1982.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Teeters, Rice, and Gramley.
(Signed) JAMES MCAFEE,
[SEAL]
Associate
Secretary
of the
Board.
Post-och Kreditbanken, PKbanken,
Stockholm, Sweden
Order Approving
Activities
Commercial
Finance
and
Leasing
Post-och Kreditbanken, PKbanken ("Applicant"),
Stockholm, Sweden, a foreign bank subject to certain
provisions of the Bank Holding Company Act has
applied for the Board's approval under section 4(c)(8)
of the act (12 U.S.C. § 1843(c)(8)) and section
225.4(b)(2) of the Board's Regulation Y (12 CFR
§ 225.4(b)(2)), to engage de novo through its subsidiary, PKfinans International Corporation ("PKFIC")
New York, New York, in making or acquiring for its
own account or for the account of others, commercial
loans and other extensions of credit, leasing real and
personal property, acting as agent, broker or adviser
with respect to such financing and leasing activities,
and servicing loans and other extensions of credit.
Such activities have been determined by the Board to
be closely related to banking (12 CFR § 225.4(a)(1),
(3), (6)).
Notice of the application, affording opportunity for
interested persons to submit comments and views on
the public interest factors, has been duly published (47
Federal Register 39615). The time for filing comments
and views has expired, and the Board has considered
the application and all comments received in light of
787
the public interest factors set forth in section 4(c)(8) of
the act.
Applicant, a government-owned Swedish commercial bank, is the third largest banking organization in
Sweden, and operates 129 branch offices, with total
assets of 17.7 billion.1 Applicant's worldwide operations include a banking subsidiary in Luxembourg,
interests in banks in London, Hong Kong, and Paris,
and representative offices and finance-related subsidiaries in several countries throughout the world. In the
United States, Applicant has a 25 percent interest in
American Scandinavian Banking Corporation, an investment company that is chartered under New York
banking law, and that pursuant to section 8(a) of the
International Banking Act of 1978 (12 U.S.C.
§ 3106(a)) is subject to certain provisions of the Bank
Holding Company Act.
To approve this application, the Board must find
that Applicant's performance of the activities through
PKFIC "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." The Board views de novo entry as procompetitive and a positive public benefit since such entry
provides an additional source of competition in a
market. Although PKFIC will be providing various
financing and leasing services to borrowers throughout
the United States, it expects to concentrate initially on
Scandinavian-related borrowers, which it hopes will
encourage Scandinavian companies to establish or
expand their operations in the United States. Accordingly the Board views the entry of PKFIC into the
commercial finance and leasing markets as a public
benefit.
There is no evidence in the record to indicate that
consummation of the proposal would result in undue
concentration of resources, decreased or unfair competition, conflicts of interests, unsound banking practices, or other adverse effects on the public interest.
Accordingly, the Board concludes that the balance of
public interest factors that it must consider under
section 4(c)(8) of the act favors approval of the application and that the application should be approved.
This determination is subject to the conditions set
forth in section 225.4(c) of Regulation Y and the
Board's authority to require such modification or
termination of the activities of a holding company or
any of its subsidiaries as the Board finds necessary to
assure compliance with the provisions and purposes of
1. All banking data are as of December 31, 1981.
788
Federal Reserve Bulletin • December 1982
the act and the Board's regulations and orders issued
under the act, or to prevent evasions of the act.
These activities shall be commenced not later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of New York,
pursuant to delegated authority.
By order of the Board of Governors, effective
November 22, 1982.
Voting for this action: Vice Chairman Martin and Governors Partee, Teeters, Rice, and Gramley. Absent and not
voting: Chairman Volcker and Governor Wallich.
(Signed)
Associate
[SEAL]
JAMES MCAFEE,
Secretary
of the
Board.
Svenska Handelsbanken,
Stockholm, Sweden
Den norske Creditbank,
Oslo, Norway
Copenhagen Handelsbank,
Copenhagen, Denmark
Kansallis-Osake-Pankki,
Helsinki, Finland
Order Approving
Funding,
Acquisition
of
Commercial
Inc.
Svenska Handelsbanken,
Stockholm,
Sweden
("Svenska"); Den norske Creditbank, Oslo, Norway
("Creditbank"); Copenhagen Handelsbank, Copenhagen, Denmark ("Copenhagen"); Kansallis-OsakePankki, Helsinki, Finland ("KOP"), (collectively
known as "Applicants"), each a foreign bank subject
to certain provisions of the Bank Holding Company
Act of 1956, as amended,1 have applied for Board's
approval, pursuant to section 4(c)(8) of the act
(12 U.S.C. § 1843(c)(8)), and § 225.4(b)(2) of the
Board's Regulation Y (12 CFR § 225.4(b)(2)), for per-
1. Applicants are subject to the nonbanking prohibitions of the act
by virtue of 12 U.S.C. § 3106(a), which provides that any foreign bank
or company controlling a foreign bank that has a branch, agency or
commercial lending company in the United States is subject to certain
provisions of the act in the same manner as if it were a bank holding
company. Applicants each own a 25 percent interest in the Nordic
American Banking Corporation, New York, New York ("NABC"),
an investment company chartered pursuant to Article XII of the New
York Banking Law. Therefore, they are subject to the act and must
receive the Board's approval before engaging in the United States in
an activity permitted under section 4(c)(8).
mission to acquire jointly and indirectly through their
subsidiary, N/A Leasing, Inc., New York, New York,
100 percent of the voting shares of Commercial Funding Inc., New York, New York ("CFI"). CFI is
engaged in the activities of leasing capital equipment
and other personal property and acting as an agent,
broker or advisor in leasing such properties. CFI is
also engaged in extending credit for its own account or
the account of others to manufacturers of and dealers
in equipment secured by the receivables of such
manufacturers and dealers and the servicing of such
accounts. The Board has determined that these activities are so closely related to banking or managing or
controlling banks as to be a proper incident thereto.
(12 CFR § 225.4(a)(1), (3) and (6)).
Notice of the application, affording opportunity for
interested persons to submit comments and views has
been given (47 Federal Register 36965 (1982)). The
time for filing comments and views has expired, and
the Board has considered the application and all
comments received in light of the public interest
factors set forth in section 4(c)(8) of the act.
Svenska is the second largest bank in Sweden and
the 92nd largest in the world, with consolidated assets
of $18.6 billion.2 Creditbank is the largest bank in
Norway and the 213th largest in the world, with
consolidated assets of $5.8 billion. Copenhagen is the
largest bank in Denmark and the 192nd largest in the
world, with consolidated assets of $6.8 billion. KOP is
the second largest bank in Finland and the 185th
largest in the world, with consolidated assets of $7.0
billion. CFI is principally engaged in the leasing of
various types of equipment and has assets of $9.9
million.3
This proposal involves the acquisition of a going
concern and the Board has considered the effects of
the acquisition on existing competition in the relevant
lines of commerce, which are commercial lending and
leasing. In its evaluation of the effects of this acquisition on existing competition in commercial lending,
the Board notes that Applicants currently engage in
commercial lending activities in the United States
through their subsidiary, NABC. NABC's activities,
however, are generally limited to providing financial
services to foreign affiliates of Applicants' Scandinavian customers and its market share is, therefore,
insignificant. CFI proposes to engage in commercial
lending in Delaware, New York, New Jersey, Connecticut, Pennsylvania, North Carolina and Florida
and currently has only a de minimis share of the
2. Unless otherwise indicated, banking data are of December 31,
1981.
3. Datum is of February 28, 1982.
Legal Developments
commercial lending market in these states. In view of
the small combined market share that would result
from consummation of this proposal, the Board finds
that the acquisition would have no serious adverse
elfects on existing competition in commercial lending.
Applicants' subsidiary does not engage in leasing
activities in the United States and, therefore, consummation of this proposal would not have any effect on
existing competition in that line of commerce. Accordingly, the Board's judgment is that consummation of
this proposal would not have any adverse effects on
existing competition in any relevant line of commerce.
The Board has also considered the effects of consummation of this proposal on probable future competition in the relevant lines of commerce, particularly in
light of the fact that this application involves the use of
a joint venture to acquire CFI.
The Board finds that each of the four Applicants has
the financial and managerial resources to independently enter the commercial leasing and lending markets in
the United States. However, a review of Applicants'
operations and history of expansion indicates that they
are unlikely candidates for independent entry into the
relevant market.4 In addition, the small size of CFI,
the existence of a number of other potential entrants
into the markets, and the unconcentrated nature of the
markets indicate that consummation of the proposal
would not have any significant adverse effects on
probable future competition. Finally, because this
application involves a joint venture of four foreign
banking organizations, it does not raise questions
concerning the undue concentration of economic resources and other adverse effects that ordinarily might
result in a joint venture combination of banking and
nonbanking institutions.5 Thus, the Board concludes
that consummation of the proposal would not have
significantly adverse effects on competition in any
market.
Consummation of the proposal may be expected to
result in public benefits inasmuch as CFI will have
access to the resources of Applicants and thus, will be
a stronger competitor in the leasing and lending mar-
kets. Further, the Board notes there is no evidence in
the record to indicate that consummation of the proposal would result in any undue concentration of
resources, conflicts of interests, unsound banking
practices, or other adverse effects.
Based on the foregoing and certain commitments by
Applicants that are reflected in the record, the Board
has determined that the balance of the public interest
factors that the Board is required to consider under
section 4(c)(8) is favorable. Accordingly, the application is hereby approved. This determination is subject
to the conditions set forth in section 225.4(c) of
Regulation Y, and to the Board's authority to require
such modification or termination of the activities of a
holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with the
provisions and purposes of the act, and the Board's
regulations and orders issued thereunder, or to prevent evasion thereof.
The proposed activity shall be commenced not later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Fedeal Reserve Bank of New
York, pursuant to delegated authority.
By order of the Board of Governors, effective
November 8, 1982.
Voting for this action: Vice Chairman Martin and Governors Partee, Teeters, and Rice. Absent and not voting:
Chairman Volcker and Governors Wallich, and Gramley.
(Signed)
[SEAL]
5. S e e , e . g . , " D e u t s c h e B a n k A G " , 67 FEDERAL RESERVE BULLE-
TIN 449 (1981); "BankAmerica Corporation", 60 FEDERAL RESERVE
BULLETIN 517, 519 (1974).
Associate
JAMES MCAFEE,
Secretary
of the
Board.
Order Under Sections 3 and 4 of Bank Holding
Company Act
The Central Bancorporation, Inc.,
Cincinnati, Ohio
Order Denying
Company
4. With the exception of each Applicant's Luxembourg bank
subsidiary, Applicants generally do not engage in business outside
their respective home countries except through joint ventures. In
addition, KOP has a 9.5 percent interest in Kajaani Oy, Finland,
which operates an electronic equipment subsidiary in the United
States and an 8.1 percent interest in Rauma-Repola Oy, Finland,
which operates a subsidiary in the United States that provides
technical assistance to Rauma's woodworking engineering industry.
The ownership of these shares is permissible under section
211.23(f)(5) of Regulation K.
789
Acquisition
of a Bank
Holding
The Central Bancorporation, Inc., Cincinnati, Ohio
("Central"), a bank holding company within the
meaning of the Bank Holding Company Act of 1956, as
amended (12 U.S.C. § 1841 et seq.), has applied for
the Board's approval under section 3(a) of the act
(12 U.S.C. § 1842(a)), to acquire Union Commerce
Corporation, Cleveland, Ohio ("UCC"), a bank holding company, and thereby indirectly acquire The
Union Commerce Bank, Cleveland, Ohio; The Southern Ohio Bank, Cincinnati, Ohio; First National Bank
790
Federal Reserve Bulletin • December 1982
of Nelsonville, Nelsonville, Ohio; and Port Clinton
National Bank, Port Clinton, Ohio.1
Central has also applied for the Board's approval
under section 4(c)(8) of the act (12 U.S.C.
§ 1843(c)(8)), and section 225.4(b)(2) of the Board's
Regulation Y (12 CFR § 225.4(b)(2)), to acquire Union
Commerce Leasing Corporation ("UCC Leasing")
and Union Commerce Management Corporation, both
of Cleveland, Ohio ("UCC Management"). UCC
Leasing engages in the activity of leasing personal
property and equipment; UCC Management engages
in the activity of providing investment advice for the
trust departments of UCC subsidiary banks. These
activities have been determined by the Board to be
closely related to banking (12 CFR §§ 225.4(a)(5) and
(6)).
Notice of receipt of these applications, affording
opportunity for interested persons to submit comments and views, has been given in accordance with
sections 3 and 4 of the act (47 Federal Register 29709
(July 8, 1982)). The time for filing comments and views
has expired, and the Board has considered the application and all comments received, including those of
Huntington Bancshares, Inc., Columbus, Ohio ("Huntington"), in light of the factors set forth in section 3(c)
of the act (12 U.S.C. § 1842(c)), and the considerations
specified in section 4(c)(8) of the act (12 U.S.C.
§ 1843(c)(8)).
Central, the eighth largest commercial banking organization in Ohio, controls eight subsidiary banks with
aggregate deposits of $1.84 billion, representing 4.1
percent of deposits in commercial banks in the state.2
UCC, the eleventh largest commercial banking organization in Ohio, controls four subsidiary banks with
aggregate deposits of $1.1 billion. Upon acquisition of
UCC, Central's share of commercial bank deposits in
Ohio would increase by 2.4 percent and Central would
become the fourth largest commercial banking organization in Ohio. Although the size of the organizations
involved is significant, approval of this proposal will
have little effect on statewide concentration, and Ohio
1. Central commenced a tender offer for the common and preferred
shares of UCC through a subsidiary, CBC Merger, Inc. ("CBC").
Central plans to merge CBC into UCC, with UCC as the surviving
entity. Central will then own 100 percent of UCC.
In connection with its tender offer, Central acquired over 5 percent
of UCC's voting preferred stock without obtaining the Board's prior
approval. UCC's preferred stock is a separate class of voting securities and, as such, Central's acquisition of more than 5 percent of these
shares violated the provisions of sections 2 and 3 of the act. Because
of confusion surrounding the definition of a "class of voting securities," the Board does not consider this violation to be an adverse
factor in its evaluation of this application. However, the Board
expects that Central will take steps to reduce its interest in UCC's
preferred stock to below five percent in order to comply with the act.
2. Banking data are as of December 31, 1981.
would remain one of the least concentrated states in
the United States.
The Board has indicated on previous occasions that
a bank holding company should serve as a source of
financial and managerial strength to its subsidiary
banks and that the Board would closely examine the
condition of an applicant in each case with this consideration in mind. Although the financial and managerial
resources of Central and its present subsidiaries are
considered satisfactory, consummation of the proposal would result in an organization that does not, in the
Board's judgment, have the financial resources to
serve as a source of strength to its subsidiary banks.
Central's proposal involves the use of a substantial
amount of debt to finance the acquisition and results in
a substantial reduction in the level of equity capital
now present in both Central and UCC.
Central proposes to acquire all of the outstanding
shares of UCC for a total purchase price of approximately $98.2 million.3 Central's tender offer for UCC's
shares contemplates the purchase of 57.1 percent of
UCC's common shares and up to 100 percent of its
preferred shares for $64.5 million in cash, and the
exchange of $33.7 million of convertible subordinated
debentures for UCC's remaining common shares.
Central would fund the cash portion of the purchase
price through short-term bank borrowing of $35 million and a preferred stock issue of $29.5 million. The
total indebtedness to be incurred in the proposed
transaction is $33.7 million,4 an increase of over 39
percent in the indebtedness of the combined organization, excluding the preferred stock which is being used
as a bridge financing vehicle. Central proposes to sell
three of its subsidiary banks and two banking offices of
its remaining subsidiary banks and three subsidiary
banks of UCC in order to use the proceeds from these
sales to redeem its proposed new issue of preferred
stock and to reduce its overall indebtedness.
As a general proposition, the Board is concerned
when transactions that rely on a substantial divestiture
of assets to finance a proposed acquisition, substantially weaken the financial resources of the component
and combined organizations. Although Central proposes to reduce its indebtedness by repaying the bank
loan and redeeming the preferred stock with the proceeds from the sales of subsidiary banks, the reduction
is not sufficient, in the Board's judgment, to restore
Central's ability to serve as a source of future financial
strength to its subsidiary banks. Assuming the pro-
3. The Board notes that the total purchase price could increase to as
much as $107 million if the holders of UCC's convertible notes
convert the notes into UCC shares and tender the shares.
4. Central proposes to retire the short-term borrowings of $35
million with the proceeds from the sale of The Southern Ohio Bank.
Legal Developments
posed sales are consummated, Central's short-term
acquisition debt repaid, and its preferred stock redeemed as Central has projected in its application,
Central's parent company long-term debt to equity
ratio would be about 55 percent compared to 17
percent at the present time. This ratio gives full weight
to all contemplated sales of subsidiary banks and other
assets. In fact, the sales are in various stages of
completeness and the timing of them is uncertain.
In an effort to allow for the uncertainty of asset sales
and to build up equity through the retention of earnings, Applicant has committed not to redeem its preferred stock unless, after redemption, its debt to
equity ratio would be no higher than 37 percent. The
37 percent ratio is higher than the Board has generally
approved in the past and is considered unacceptably
high this case. Moreover, the preferred stock commitment further increases the pressures on Central's
subsidiary banks to provide support to Central to meet
the substantial dividend requirements of its preferred
stock. Although Applicant's projections indicate Central could service its additional debt and meet its
preferred stock dividend requirements, both strong
earnings in its subsidiary banks and relatively high
dividend payouts from them would be required. In
view of the historical performance of the banks involved, the Board regards Applicant's projections as
optimistic. For these reasons, the Board does not
believe that the proposal affords the degree of financial
flexibility that is required for an organization of this
size and importance.
Consummation of the proposal would also reduce
Central's equity capital ratio from 7.2 percent to 5.8
percent, representing, in the Board's view, a significant weakening in Central's capital position.5 In this
connection, the Board notes that approximately 25
percent of Central's equity capital funds subsequent to
consummation of the proposal would consist of
"goodwill."
The Board believes that the substantial increase in
Central's indebtedness, the substantial reduction in its
capital, the uncertainties surrounding the proposed
sale of assets, and the undue strains placed on the
earnings of its subsidiary banks to service acquisition
debt and to meet preferred stock dividend requirements are each an adverse financial consideration in
this case. The Board's judgment is that the cumulative
effect of these and the other considerations with
respect to the financial resources of Central is so
adverse as to warrant denial of the application.
5. This assumes consummation of all proposed sales of subsidiary
banks and the redemption of Central's new issue of preferred stock.
791
The subsidiary banks of Central and UCC compete
directly with each other in the Cleveland,6Cincinnati,7
and Athens8 banking markets. In the Cleveland market, UCC is the fifth largest banking organization with
deposits of $775.3 million,9representing seven percent
of the total deposits in commercial banks in the
market. Central is the thirteenth largest organization in
the market with deposits of $104.8 million, representing less than one percent of the total deposits in
commercial banks in the market. Consummation of the
proposed acquisition would appear to have no significant adverse effects on existing competition in the
Cleveland market.
In the Cincinnati market, Central is the third largest
banking organization with deposits of $789 million,
representing 16.9 percent of the total deposits in
commercial banks in the market. UCC ranks fifth in
the market and controls $199 million in deposits,
representing 4.3 percent of total deposits in commercial banks in the market. The acquisition of UCC
would increase Central's market share to 21.2 percent,
and Central would become the second largest banking
organization in the market. The deposits held by the
market's four largest banking organizations would
increase from 67.1 percent to 71.4 percent.
In the Athens market, Central is the third largest
banking organization with $28.2 million in deposits,
representing 16.2 percent of total deposits in commercial banks in the market. UCC is the smallest of the six
banking organizations in the Athens market with deposits of $14.4 million, representing 8.3 percent of
total deposits in commercial banks in the market. The
acquisition of UCC by Central would increase Central's market share of deposits in commercial banks in
the Athens market to 24.5 percent, and Central would
become the second largest banking organization in the
market. The deposits held by the market's four largest
banking organizations would increase from 83.4 percent to 91.7 percent.
In the Board's opinion, consummation of the proposal would increase the concentration of banking
resources and would eliminate a significant amount of
existing competition between Central and UCC in the
Cincinnati and Athens, Ohio banking markets.10
6. The Cleveland banking market consists of Cuyahoga, Lake,
Lorain, and Geauga Counties, the northern third of Summit County,
the northwest portion of Portage County, most of Medina County, and
the city of Vermilion.
7. The Cincinnati banking market includes Hamilton and Clermont
Counties and portions of Warren and Butler Counties in Ohio; Borne,
Campbell, and Kenton Counties in Kentucky, and Dearborn County,
Indiana.
8. The Athens banking market is defined as all of Athens County
except Troy Township.
9. Market deposits are as of June 30, 1981.
10. The Board concludes that consummation of the proposal will
have no substantial adverse effects on probable future competition in
any relevant market in the state.
792
Federal Reserve Bulletin • December 1982
In order to eliminate the anticompetitive effects of
the acquisition, Central has committed to divest its
subsidiary bank in the Athens market, The Peoples
Bank." UCC has also contracted to sell its subsidiary
bank in the Cincinnati market, The Southern Ohio
Bank, to United Midwest Bancshares, Inc., Cincinnati, Ohio ("United Midwest").12 In the event the
Board denies United Midwest's application to acquire
Southern Ohio Bank, UCC has contracted to sell
Southern Ohio Bank to AmeriTrust Corporation,
Cleveland, Ohio. The proposed purchasers have filed
applications for the Board's prior approval under the
act for these acquisitions.
In "Barnett Banks of Florida, Inc.," 68 FEDERAL
RESERVE BULLETIN 190 (1982), the Board stated that
divestitures that were required to avoid the anticompetitive effects of a proposed transaction "should be
completed prior to or concurrent with consummation
of the proposal so as to avoid the existence of significant anticompetitive effects for even a short period of
time." Central has requested that the Board modify its
divestiture policy in this case in light of a competing
tender offer for UCC by Huntington.13 Central has
proposed to meet the Board's divestiture policy by
placing the shares of Peoples Bank and Southern Ohio
Bank in voting trusts until those divestitures can be
completed.
The Board continues to believe that the policy set
forth in the Barnett decision is necessary where divestitures are proposed to eliminate otherwise substantial
anticompetitive effects. However, in light of the
Board's adverse findings regarding Central's financial
resources, the Board finds it unnecessary to decide
whether a modification to the Board's policy is appropriate in this case.
With respect to the convenience and needs of the
communities to be served, Applicant states that consummation of this proposal would permit UCC to
place greater emphasis on retail banking services and
would give UCC access to an expanded ATM network
and to Central's expertise in the issuance of retail
repurchase agreements, IRAs, and sweep accounts. In
the Board's view, these convenience and needs considerations are not sufficient to outweigh the adverse
financial effects of this proposal.
11. On August 13, 1982, UCC contracted to sell its subsidiary bank
in the Athens, Ohio market to Banc One Corporation, Columbus,
Ohio.
12. Although the Board denied United Midwest's original application to acquire Southern Ohio, "United Midwest Bancshares, Inc.,"
(Press Release of October 14, 1982), a modified proposal from United
Midwest is currently pending at the Board.
13. Huntington's application to acquire UCC was approved by the
Federal Reserve Bank of Cleveland, acting pursuant to delegated
authority, on May 20, 1982.
Based on the foregoing and other considerations
reflected in the record, the Board's judgment is that
the proposed acquisition is not in the public interest
and that the applications should be, and hereby are
denied.
By order of the Board of Governors, effective
November 12, 1982.
Voting for this action: Vice Chairman Martin and Governors Wallich, Teeters, Rice, and Gramley. Absent and not
voting: Chairman Volcker and Governor Partee.
(Signed)
[SEAL]
Associate
JAMES MCAFEE,
Secretary
of the
Board.
First Pacific Investments Limited,
Monrovia, Liberia
First Pacific Holdings Limited,
Hong Kong
FPC Holdings, N.V.,
Curacao, Netherlands Antilles
First Pacific (Netherlands), B.V.,
Amsterdam, The Netherlands
First Pacific Corporation,
Wilmington, Delaware
Order Approving
Formation
of Bank
Holding
Companies
First Pacific Investments Limited, Monrovia, Liberia
("First Pacific"); First Pacific Holdings Limited,
Hong Kong ("FP-Hong Kong"); FPC Holdings, N.V.,
Curacao, Netherlands Antilles ("FP-N.V."); First Pacific (Netherlands), B.V., Amsterdam, Netherlands
("FP-B.V."); and First Pacific Corporation, Wilmington, Delaware ("FP-U.S."), have each applied for the
Board's approval under section 3(a)(1) of the Bank
Holding Company Act (12 U.S.C. § 1842(a)(1)) to
become a bank holding company through the acquisition by FP-U.S. of 100 percent of the voting shares of
Hibernia Bancshares Corporation, San Francisco,
California ("Hibernia"). Hibernia owns 100 percent of
the voting shares of The Hibernia Bank, San Francisco, California ("Bank") and is a registered bank
holding company. In addition, First Pacific and FPHong Kong have applied for the Board's approval
under section 4(c)(13) of the Bank Holding Company
Act (12 U.S.C. § 1843(c)(13)) to retain ownership of
shares in First Pacific Finance Limited, Hong Kong
("First Pacific Finance"), a registered deposit-taking
Legal Developments
company organized under the laws of Hong Kong and
publicly traded in Hong Kong.
Notice of the applications, affording an opportunity
for interested persons to submit comments and views,
has been given in accordance with section 3(b) of the
act. The time for filing comments and views has
expired and the Board has considered the applications
and all comments received in light of the factors set
forth in section 3(c) of the act.
Applicants, with the exception of FP-Hong Kong,
are non-operating corporations organized for the purpose of acquiring Hibernia. First Pacific, a holding
company organized under the laws of Liberia, owns
over 65 percent of the outstanding voting shares of FPHong Kong, a publicly traded corporation organized
under the laws of Hong Kong. FP-Hong Kong owns a
majority of the shares of First Pacific Finance. In
addition, FP-Hong Kong proposes to acquire 100
percent of the shares of FP-N.V., a company organized under the laws of the Netherlands Antilles. FPN.V. owns 100 percent of the shares of FP-B.V., a
corporation organized under the laws of The Netherlands, which in turn owns all of the shares of FP-U.S.,
a corporation chartered under the laws of the State of
Delaware.
Upon acquisition of Hibernia and, indirectly, Bank,
Applicants would control the twelfth largest commercial banking organization in California, controlling
0.53 percent of the total deposits in commercial banks
in the state.1
Bank has assets of $888 million and controls $752
million in deposits in 35 offices in the San Francisco,
California, banking market.2 Bank is the eleventh
largest commercial bank in that market, with 1.4
percent of the total market deposits. Inasmuch as
Applicants and their principals control no other banks
and conduct no nonbanking business in the United
States, consummation of the proposed transaction
would have no adverse effects on either existing or
potential competition in any relevant market, and
would not increase the concentration of resources in
any relevant area. Therefore, the Board concludes that
competitive considerations are consistent with approval of the applications.
The financial and managerial resources and future
prospects of each of the Applicants are considered
satisfactory. In this connection, Applicants have committed to refrain from any action to change the proposed financial or organizational structure of the transaction without the consent of the Board, to consent to
1. Asset data are as of June 30, 1981; all other banking data are as of
June 30, 1982.
2. The San Francisco banking market is approximated by the San
Francisco RMA.
793
the jurisdiction of the United States, to appoint an
agent for service of process in the United States, and
to maintain adequate books and records in the United
States available to the Board on request together with
any additional information that the Board may require
concerning Applicants' business and financial condition. The financial and managerial resources and future prospects of Bank appear satisfactory in light of
commitments made by Applicants to strengthen and
improve Bank's overall condition. Based on these and
other commitments made by Applicants, the Board
has determined that the considerations relating to
banking factors are consistent with approval of the
applications.
In addition to the fact that affiliation with Applicants
will strengthen Bank's condition, consummation of the
proposal will enable Bank to remain a viable competitive alternative for serving the convenience and needs
of the San Francisco community. Applicants also
propose to assist Bank in developing a wide range of
international banking capabilities. Therefore, the
Board finds that considerations relating to the convenience and needs of the community to be served are
consistent with approval. Accordingly, the Board has
determined that consummation of the transaction
would be in the public interest and that the applications should be approved.
First Pacific and FP-Hong Kong have also applied to
retain shares in First Pacific Finance, a majorityowned subsidiary organized under the laws of Hong
Kong. First Pacific Finance engages in deposit-taking
activities in Hong Kong, as well as commercial lending, money market and inter-bank foreign exchange
deposit activities, trade finance activities, loan syndication, financial advisory services regarding industrial, commercial and real estate development projects,
and financial advisory activities regarding industrial
mergers, acquisitions, and corporate restructurings.
First Pacific Finance does not, directly or indirectly,
conduct business in the United States. The type of
activities engaged in by First Pacific Finance have
been found to be usual in connection with the transaction of banking or other financial operations abroad
and are permissible activities under the Board's Regulation K (12 CFR § 211.5(d)). Accordingly, the Board
concludes that the application by First Pacific and FPHong Kong to retain shares of First Pacific Finance
should be approved.
Based upon the foregoing, including all of the facts
of record and the commitments made by Applicants,
the Board has determined that the applications under
sections 3(a)(1) and 4(c)(13) of the act should be and
hereby are approved. The acquisition of shares of
Hibernia shall not be consummated before the thirtieth
day following the effective date of this Order, and
794
Federal Reserve Bulletin • December 1982
neither the acquisition nor the contemplated transfer
of shares of FP-N.V. shall occur later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of San Francisco, under
delegated authority.
By order of the Board of Governors, effective
November 18, 1982.
Voting for this action: Vice Chairman Martin, Governors
Partee, Teeters, Rice, and Gramley. Absent and not voting:
Chairman Volcker and Governor Wallich.
(Signed)
WILLIAM W . WILES,
Secretary
[SEAL]
of the
Board.
Third National Corporation,
Nashville, Tennessee
Order Approving
Companies
Merger
and Acquisition
of Bank
Holding
on
Nonbanking
Activities
Third National Corporation, Nashville, Tennessee
("Applicant"), a bank holding company within the
meaning of the Bank Holding Company Act of 1956, as
amended (12 U.S.C. § 1841 et seq.), has applied for
the Board's approval under section 3(a)(5) of the act
(12 U.S.C. § 1842(a)(5)), to merge with Ancorp Bancshares, Inc., Chattanooga, Tennessee ("Ancorp"),
also a bank holding company. As a result of the
merger, Third National would acquire Ancorp's two
subsidiary banks: American National Bank and Trust
Company of Chattanooga, Chattanooga, Tennessee;
and Hamilton Bank of Johnson City, Johnson City,
Tennessee.
Applicant has also applied for the Board's approval
under section 4(c)(8) of the act (12 U.S.C.
§ 1843(c)(8)), and section 225.4(b)(2) of the Board's
Regulation Y (12 CFR § 225.4(b)(2)), to acquire Ancorp Insurance Company, Chattanooga, Tennessee
("Ancorp Insurance"). Ancorp Insurance engages in
the underwriting of credit life insurance and credit
accident and health insurance directly related to extensions of credit made by Ancorp's subsidiary banks.
The Board has determined that these activities are
closely related to banking (12 CFR § 225.4(a)( 10)) and
this determination is consistent with the recent amendments to section 4(c)(8) of the act limiting the permissible insurance activities of bank holding companies.1
1. See The Garn-St Germain Depository Institutions Act of 1982,
Pub. L. No. 97-320, § 601(A), 96 Stat. 1469 (1982).
Notice of receipt of these applications, affording
opportunity for interested persons to submit comments and views, has been given in accordance with
sections 3 and 4 of the act (47 Federal Register 41425
(September 20, 1982)). The time for filing comments
has expired and the Board has considered the application and all comments received in light of the factors
set forth in section 3(c) of the act (12 U.S.C.
§ 1842(c)), and the considerations specified in section
4(c)(8) of the act (12 U.S.C. § 1843(c)(8)).
Applicant is the fourth largest commercial banking
organization in Tennessee and controls eight subsidiary banks with aggregate deposits of $1.6 billion,
representing 7.4 percent of the total deposits in commercial banks in the state.2 Ancorp is the sixth largest
commercial banking organization in Tennessee and
controls two subsidiary banks with aggregate deposits
of $692.9 million, representing 3.3 percent of the total
deposits in commercial banks in the state. Consummation of the proposed merger would increase Applicant's share of deposits in commercial banks in Tennessee to 10.7 percent and Applicant would become
the second largest banking organization in Tennessee.
While the size of the organizations involved is significant, approval of this proposal will have little effect on
statewide concentration. Because Applicant and Ancorp do not operate any subsidiary banks in the same
market, consummation of the proposal would not
eliminate existing competition in any relevant market.
The Board has examined the effect of the proposed
merger of Applicant and Ancorp upon probable future
competition in the relevant geographic markets in light
of the Board's proposed probable future competition
guidelines.3 Applicant operates in eight banking markets in which Ancorp is not represented.4 Because of
Ancorp's size and its history of limited geographic
expansion, the Board does not consider Ancorp to be a
likely future entrant into any of the eight markets
where Applicant currently operates. Moreover, each
of these markets is either not concentrated, as measured by the Board's proposed guidelines, or, because
of its small size or market structure, is not attractive
for de novo or foothold entry by Ancorp. Accordingly,
the Board concludes that the proposal would not have
substantial adverse effects on probable future competi-
2. Banking data are as of December 31, 1981.
3. "Proposed Policy Statement of the Board of Governors of the
Federal Reserve System for Assessing Competitive Factors Under the
Bank Merger Act and the Bank Holding Company Act", 47 Federal
Register 9017 (March 3, 1982). Although the proposed policy statement has not been approved by the Board, the Board has used the
proposed policy statement in a number of cases to determine whether
an intensive analysis is warranted regarding the effects of a proposal
on probable future competition.
4. These banking markets are the Nashville, Knoxville, Obion,
Bradley, Sevier, Lawrence, Giles, and Hardin markets.
Legal Developments
tion in any of these eight markets in which Ancorp
does not operate.
Ancorp controls banks in two banking markets in
which Applicant is not represented: Chattanooga and
Johnson City.5 In view of its size, substantial managerial and financial resources, and previous history of
expansion, Applicant appears to be a potential entrant
into the Chattanooga and Johnson City markets. In the
Johnson City market, Ancorp's subsidiary bank is the
second largest of seven banks and controls 21.9 percent of the total deposits in commercial banks in the
market. The Johnson City market has a three-firm
concentration ratio of 65.9 percent and thus is unconcentrated under the Board's proposed guidelines. In
addition, in view of the structure of the Johnson City
banking market, the Board finds that Applicant's entry
de novo or by a foothold acquisition is not likely.
In the Chattanooga market, Ancorp's subsidiary
bank is the largest of twelve banks, controlling 41.7
percent of the deposits in commercial banks in the
market. The Chattanooga banking market is concentrated, with a three-firm market concentration ratio of
79.6 percent. In light of these factors, the Board has
carefully examined the proposed merger to determine
its effect on probable future competition in the Chattanooga market. The average growth rate of deposits in
the Chattanooga market for the past two years has
been below the state and national average. On this
basis, the Board finds that the market is not attractive
for de novo or foothold entry and that an intensive
analysis of the proposal under the Board's guidelines
is not required.
In addition, there are three Tennessee bank holding
companies with assets over $1 billion that would
remain as probable future entrants into the Chattanooga market following consummation of this proposal.6
There are also at least four Georgia banking organizations that are considered probable future entrants into
Walker County, Georgia, which is adjacent to the city
of Chattanooga and is part of the Chattanooga banking
market. The presence of these Georgia organizations
further mitigates the Board's concerns regarding the
elimination of Applicant as a probable future entrant
into the Chattanooga market. On the basis of the
above and other facts of record, the Board concludes
that there are insufficient grounds upon which to
determine that consummation of the proposed merger
5. The Chattanooga banking market is defined as Hamilton County,
Tennessee, and Walker County, Georgia. The Johnson City banking
market is defined as Carter and Washington Counties, Tennessee.
6. The Board notes that there are two other Tennessee banking
organizations not presently represented in the Chattanooga market
that have assets over $700 million, and that have made a number of
bank acquisitions outside of the market in which their lead banks were
located.
795
would substantially lessen probable future competition
in any relevant market in the state.
The financial and managerial resources and future
prospects of Applicant and Ancorp and their respective subsidiaries are considered satisfactory and consistent with approval. Although some new or expanded services may result from approval of this
acquisition, there is no evidence in the record indicating that the banking needs of the communities to be
served are not being met. Considerations relating to
the convenience and needs of the community to be
served are consistent with approval.
Applicant's credit life underwriting subsidiary currently does not derive its business from any of the
banking markets where Ancorp Insurance Service
operates. Accordingly, consummation of the proposed
merger would not decrease competition in this line of
commerce. There is no evidence in the record to
indicate that approval would result in other adverse
effects, such as undue concentration of resources,
unfair competition, conflicts of interest, or unsound
banking practices. Accordingly, the Board has determined that the balance of public interest factors it must
consider under section 4(c)(8) of the act is consistent
with approval of the application.
Based on the foregoing and the facts of record, the
Board has determined that the applications under
sections 3(a)(5) and 4(c)(8) should be and are hereby
approved. The merger shall not be made before the
thirtieth calendar day following the effective date of
this Order; neither the subject merger nor the acquisition of the nonbanking subsidiaries shall be made later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of
Atlanta, pursuant to delegated authority. The determination as to Applicant's acquisition of Ancorp's nonbank subsidiaries is subject to the conditions set forth
in section 225.4(c) of Regulation Y (12 CFR § 225.4(c))
and to the Board's authority to require such modifications or termination of activities of a holding company
or any of its subsidiaries as the Board finds necessary
to assure compliance with the provisions and purposes
of the act and the Board's regulations and Orders
issued thereunder, or to prevent evasion thereof.
By order of the Board of Governors, effective
November 30, 1982.
Voting for this action: Vice Chairman Martin and Governors Partee, Teeters, and Gramley. Absent and not voting:
Chairman Volcker and Governors Wallich and Rice.
(Signed)
[SEAL]
Associate
JAMES MCAFFEE,
Secretary
of the
Board.
796
Federal Reserve Bulletin • December 1982
Concurring Statement
of Governor
Teeters
method of addressing the standards set out by the
United States Court of Appeals for the Fifth Circuit in
I concur with the decision of the Board that the
application to merge these two bank holding companies should be approved. Although the Board's proposed probable future competition guidelines technically would require more intensive review of the
effects of this merger in the Bradley banking market, I
believe the Board correctly determined that such
further analysis is unwarranted. The relatively small
size and unique structure of this market makes it
unlikely that consummation of the proposal would
eliminate a significant amount of probable future competition.
I continue to be concerned, however, with the
Board's general approach to the evaluation of the
effects of a merger on probable future competition.
The Board's guidelines have been proposed as a
Mercantile
Texas Corporation
v. Board of
Governors,
638 F.2d 1255 (5th Cir. 1981). As I have previously
indicated, these grounds are so subjective that the
Board has great difficulty in enforcing them and, in
fact, has allowed a number of combinations of bank
holding companies that, in my opinion, were substantially anticompetitive.
The instant case, on the other hand, presents a
situation in which these proposed guidelines were
triggered where the elimination of significant probable
future competition is not an obvious concern. Accordingly, I believe the Board should give increased attention to developing and applying standards that more
realistically reflect the adverse effects of the elimination of probable future competition.
November 30, 1982
ORDERS APPROVING
AND BANK MERGER
APPLICATIONS
ACT
UNDER THE BANK HOLDING
COMPANY
ACT
By the Board of Governors
During November 1982, the Board of Governors approved the applications listed below. Copies are available
upon request to Publications Services, Division of Support Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 3
Applicant
Atlantic Bancorporation,
Jacksonville, Florida
Bunceton Bancshares, Inc.,
Blue Springs, Missouri
Community Bancorporation, Inc.
Bellville, Texas
Cook Investment, Inc.,
Beatrice, Nebraska
First Central Corporation,
Searcy, Arkansas
First City Bancorporation of Texas, Inc.
Houston, Texas
First Manitowoc Bancorp, Inc.,
Manitowoc, Wisconsin
Bank(s)
Atlantic National Bank of Florida at
Orange Park,
Orange Park, Florida
Bunceton State Bank,
Bunceton, Missouri
The First National Bank of Bellville,
Bellville, Texas
Beatrice National Corporation,
Beatrice, Nebraska
The Beatrice National Bank and Trust
Company,
Beatrice, Nebraska
First National Bank of Searcy,
Searcy, Arkansas
Graham National Bank,
Graham, Texas
The Graham National Bank,
Graham, Texas
First National Bank in Manitowoc,
Manitowoc, Wisconsin
Board action
(effective
date)
November 5, 1982
November 9, 1982
November 5, 1982
November 4, 1982
November 29, 1982
November 3, 1982
November 16, 1982
Legal Developments
797
Section 3—Continued
Applicant
Madelia Holding Corp.,
Madelia, Minnesota
Park National Corporation,
Knoxville, Tennessee
Texas American Bancshares, Inc.
Forth Worth, Texas
Texas Commerce Bancshares, Inc.
Houston, Texas
Bank(s)
Reserve
Bank
The Citizens National Bank of Madelia,
Madelia, Minnesota
Park National Bank of Knoxville,
Knoxville, Tennessee
Citizens National Bank of Temple,
Temple, Texas
Forum Bank,
Arlington, Texas
Texas Commerce Bank-West Oaks, N.A.,
Houston, Texas
Effective
date
November 30, 1982
November 26, 1982
November 8, 1982
November 4, 1982
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders are
available upon request to the Reserve Banks.
Section 3
Applicant
Abanc Holding, Inc.,
El Dorando, Kansas
Alamo Corporation of Texas,
Alamo, Texas
Alpine Bancorp, Inc.,
Glenwood Springs, Colorado
American Bancorporation, Inc.,
Longview, Teaxs
American Commerce Bancshares,
Inc.,
Oklahoma City, Oklahoma
Associated Bank Shares Corporation,
Colorado Springs, Colorado
Bancap, Inc.,
Poland, Indiana
Reserve
Bank
Effective
date
Kansas City
November 9, 1982
Dallas
November 17, 1982
Kansas City
October 29, 1982
Dallas
November 19, 1982
Kansas City
November 16, 1982
Citizens National Bank,
Colorado Springs, Colorado
Kansas City
October 29, 1982
Peoples State Bank of Clay
County,
Poland, Indiana
Chicago
November 26, 1982
Bank(s)
Augusta Bank and Trust,
Augusta, Kansas
Alamo Bank of Texas,
Alamo, Texas
Central National Bank,
Pharr, Texas
McAllen National Bank,
McAllen, Texas
Snowmass Bancorp, Inc.,
Snowmass Village
Basalt Bancorp, Inc.,
Basalt, Colorado
Alpine Bank,
Glenwood Springs, Colorado
Valley Bank,
Eagle, Colorado
Colorado River Bancorp,
Clifton, Colorado
Texas Bank & Trust in Wichita
Falls,
Wichita Falls, Texas
American Bank of Commerce,
Oklahoma City, Oklahoma
798
Federal Reserve Bulletin • December 1982
Section 3—Continued
Applicant
Bank of Virginia Company,
Richmond, Virginia
Bryant Bancshares, Inc.,
Bryant, South Dakota
Carver County Bancshares, Inc.,
Chaska, Minnesota
CharterCorp,
Kansas City, Missouri
Citizens State Financial Corporation,
Clay County Bancshares, Inc.,
Celina, Tennessee
Commercial Bancshares, Inc.,
Wharton, Texas
Commercial Bankstock, Inc.,
Oklahoma City, Oklahoma
Community Corporation,
Enid, Oklahoma
C.S.B. Corporation,
Marianna, Florida
Dairyland State Bancorporation,
Inc.,
Bruce, Wisconsin
Dawson Springs Bancorp, Inc.,
Dawson Springs, Kentucky
Eitzen Independents, Inc.,
Eitzen, Minnesota
Emery Security Bancorporation,
Inc.,
Emery, South Dakota
Fairmount Bancorp, Inc.,
Fairmount, Illinois
First Ada Bancshares, Inc.,
Ada, Oklahoma
First Ainsworth Company,
Ainsworth, Nebraska
First-Citizens Corporation,
Raleigh, North Carolina
First Edmond Bancshares, Inc.,
Edmond, Oklahoma
First Graham Bancorp, Inc.,
Graham, Texas
First Jacksboro Bancshares, Inc.,
Jacksboro, Texas
Bank(s)
The Bank of Vienna,
Vienna, Virginia
Bryant State Bank,
Bryant, South Dakota
Carver County State Bank,
Chaska, Minnesota
American National Bank,
St. Louis, Missouri
City Bank, St. Louis,
Missouri
RepublicBank Groveton,
Groveton, Texas
Clay County Bank,
Celina, Tennessee
CB & T Bancshares, Inc.,
Cleveland, Texas
Commercial Bank, N.A.,
Oklahoma City, Oklahoma
Community Bank and Trust
Company,
Enid, Oklahoma
Gadsden State Bank,
Chattahoochee, Florida
Dairyland State Bank,
Bruce, Wisconsin
Commercial Bank of Dawson,
Dawson Springs, Kentucky
Eitzen State Bank,
Eitzen, Minnesota
Security State Bank,
Emery, South Dakota
The First National Bank of Fairmount,
Fairmount, Illinois
The First National Bank,
Ada, Oklahoma
The First National Bank of Ainsworth,
Ainsworth, Nebraska
First-Citizens Bank & Trust Company,
Raleigh, North Carolina
First National Bank of Edmond,
Edmond, Oklahoma
First National Bank in Graham,
Graham, Texas
The First National Bank of Jacksboro,
Jacksboro, Texas
Reserve
Bank
Effective
date
Richmond
November 16, 1982
Minneapolis
November 3, 1982
Minneapolis
November 12, 1982
Kansas City
October 22, 1982
Dallas
November 8, 1982
Atlanta
November 26, 1982
Dallas
November 8, 1982
Kansas City
November 5, 1982
Kansas City
October 25, 1982
Atlanta
November 8, 1982
Minneapolis
November 24, 1982
St. Louis
November 15, 1982
Minneapolis
October 29, 1982
Minneapolis
November 19, 1982
Chicago
November 8, 1982
Kansas City
November 15, 1982
Kansas City
November 16, 1982
Richmond
November 4, 1982
Kansas City
November 10, 1982
Dallas
November 17, 1982
Dallas
November 29, 1982
Legal Developments
799
Section 3—Continued
Applicant
First National Bank Holding Corporation,
Pensacola, Florida
First Pioneer Bank Corp.,
Brush, Colorado
First Roane County Bankcorp,
Inc.,
Rockwood, Tennessee
First State Bancorp, Inc.,
Pittsburg, Kansas
First Winters Holding Company,
Winters, Texas
Florida National Banks of Florida,
Inc.,
Jacksonville, Florida
Forrest Bancshares, Inc.,
Forrest, Illinois
Franklin Bancshares, Inc.,
Franklin, Texas
Freeburg Bancorp, Inc.,
Freeburg, Illinois
Gary Holding Company,
Gary, South Dakota
Goodhue County Financial Corporation,
Red Wing, Minnesota
Grinnell Bancshares, Inc.,
Grinnell, Iowa
Gulf Southwest Bancorp, Inc.,
Houston, Texas
Guaranty Bancshares Holding Corporation,
Morgan City, Louisiana
H & H Bancshares, Inc.,
White City, Kansas
Hawkeye Bancorporation,
Des Moines, Iowa
Bank(s)
Reserve
Bank
Effective
date
First National Bank of Escambia
County,
Pensacola, Florida
The Citizens National Bank,
Akron, Colorado
The First National Bank,
Wray, Colorado
First National Bank and Trust
Company,
Rockwood, Tennessee
First State Bank and Trust Company,
Pittsburg, Kansas
The Winters State Bank,
Winters, Texas
Kingsley Bank,
Orange Park, Florida
Atlanta
November 5, 1982
Kansas City
November 4, 1982
Atlanta
November 16, 1982
Kansas City
November 2, 1982
Dallas
November 8, 1982
Atlanta
November 12, 1982
First State Bank of Forrest,
Forrest, Illinois
The First National Bank of Franklin,
Franklin, Texas
The First National Bank of Freeburg,
Freeburg, Illinois
Gary State Bank,
Gary, South Dakota
The Goodhue County National
Bank of Red Wing,
Red Wing, Minnesota
Grinnell State Bank,
Grinnell, Iowa
Merchants Park Bank,
Houston, Texas
Southern State Bank,
Houston, Texas
League City National Bank,
League City, Texas
Alvin Community Bank, N.A.,
Alvin, Texas
Guaranty Bank & Trust Company
of Morgan City,
Morgan City, Louisiana
First National Bank of White City,
White City, Kansas
First National Bank in Lenox,
Lenox, Iowa
State Bank of Vinton,
Vinton, Iowa
Chicago
October 29, 1982
Dallas
November 26, 1982
St. Louis
October 29, 1982
Minneapolis
November 24, 1982
Minneapolis
November 26, 1982
Chicago
November 15, 1982
Dallas
November 26, 1982
Atlanta
November 10, 1982
Kansas City
November 5, 1982
Chicago
November 4, 1982
800
Federal Reserve Bulletin • December 1982
Section 3—Continued
Applicant
Heartland Financial Bancshares,
Inc.,
Hebron Bancshares, Inc.,
Omaha, Nebraska
Hillsboro Bancshares, Inc.,
Hillsboro, Missouri
Hub Financial Corporation,
Helena, Montana
Huntley Bancshares, Inc.,
Huntley, Illinois
Lancaster Bancshares, Inc.,
Lancaster, Texas
Maynard Savings Bancshares,
Maynard, Iowa
Midland BanCor, Inc.,
Lee's Summit, Missouri
M.M. Enterprises of Plentywood,
Inc.,
Plentywood, Montana
Mountain Financial Company,
Maryville, Tennessee
MSB Holding Co., Inc.,
Bismarck, North Dakota
Nelson Bancorp, Inc.,
Chaplin, Kentucky
Northern Trust Corporation,
Chicago, Illinois
Northern Trust Corporation,
Chicago, Illinois
Peoples Bancorp, Inc.,
Richwood, West Virginia
Piggott Bankstock, Inc.,
Piggott, Arkansas
Pioneer Bank Shares,
Evanston, Wyoming
Pope County Bankshares, Inc.,
Russellville, Arkansas
Republic Bancshares, Inc.,
Winchester, Tennessee
Southwest Bancshares, Inc.,
Houston, Texas
State Bancshares, Inc.,
Enterprise, Alabama
Timpson Financial Corporation,
Timpson, Texas
Trinity Bancshares, Inc.,
http://fraser.stlouisfed.org/
Dallas, Texas
Federal Reserve Bank of St. Louis
Bank(s)
Heartland Bancorp, Inc.,
El Paso, Illinois
State Bank of Cornland,
Cornland, Illinois
Bank of Carlock,
Carlock, Illinois
Woodford Investment Company,
Eureka, Illinois
Security Bank of Hebron,
Hebron, North Dakota
Bank of Hillsboro,
Hillsboro, Missouri
Valley Bank of Helena,
Helena, Montana
State Bank of Huntley,
Huntley, Illinois
The First National Bank of Lancaster,
Lancaster, Texas
The Maynard Savings Bank,
Maynard, Iowa
Midland Bank,
Lee's Summit, Missouri
Security State Bank of
Plentywood,
Plentywood, Montana
Jefferson County Bank,
Dandridge, Tennessee
Mandan Security Bank,
Mandan, North Dakota
Peoples State Bank,
Chaplin, Kentucky
Colonial Bank of Schaumburg,
Schaumburg, Illinois
Colonial Bank of Schaumburg,
Schaumburg, Illinois
Peoples Bank of Richwood, Inc.,
Richwood, West Virginia
Piggott State Bank,
Piggott, Arkansas
Pioneer Bank of Evanston,
Evanston, Wyoming
Peoples Bank & Trust Company,
Russellville, Arkansas
Franklin County Bank,
Winchester, Tennessee
Plaza National Bank,
Harlingen, Texas
Coffee County Bank,
Enterprise, Alabama
First State Bank,
Timpson, Texas
Trinity National Bank of Dallas,
Dallas, Texas
Reserve
Bank
Effective
date
Chicago
November 22, 1982
Minneapolis
November 26, 1982
St. Louis
November 26, 1982
Minneapolis
November 2, 1982
Chicago
November 3, 1982
Dallas
November 19, 1982
Chicago
November 1, 1982
Kansas City
October 27, 1982
Minneapolis
November 19, 1982
Atlanta
November 26, 1982
Minneapolis
November 19, 1982
St. Louis
November 1, 1982
Chicago
November 24, 1982
Chicago
November 24, 1982
Richmond
November 17, 1982
St. Louis
November 12, 1982
Kansas City
October 22, 1982
St. Louis
November 5, 1982
Atlanta
November 12, 1982
Dallas
October 28, 1982
Atlanta
November 2, 1982
Dallas
November 5, 1982
Dallas
November 5, 1982
Legal Developments
801
Section 3—Continued
Reserve
Bank
Bank(s)
Applicant
Ulm Financial Corporation,
New Ulm, Texas
United Bancorp., Inc.,
Victoria, Texas
U.S.B. Holding Co., Inc.,
Nanuet, New York
UST Corp.,
Boston, Massachusetts
Wayne Bancshares, Inc.,
Monticello, Kentucky
Western Bancshares of El Paso,
Inc.,
El Paso, Texas
The Wilber Corporation,
Oneonta, New York
New Ulm State Bank,
New Ulm, Texas
Unitedbank-Victoria,
Victoria, Texas
Union State Bank,
Nanuet, New York
Charlesbank Trust Company,
Cambridge, Massachusetts
City & County Bank of Wayne
County,
Monticello, Kentucky
Western Bank,
El Paso, Texas
Wilber National Bank,
Oneonta, New York
Effective
date
Dallas
November 26, 1982
Dallas
October 29, 1982
New York
November 23, 1982
Boston
November 23, 1982
St. Louis
November 26, 1982
Dallas
November 26, 1982
New York
November 23, 1982
Section 4
Applicant
Nonbanking
company
(or activity)
Eaton Capital Corporation,
Loup City, Nebraska
Colorado Industrial Bank,
Eaton, Colorado
Reserve
Bank
Effective
date
Kansas City
October 27, 1982
Sections 3 and 4
Applicant
Bank(s)
LeClaire Agency, Inc.,
LeClaire, Iowa
Princeton Agency, Inc.,
Princeton, Iowa
LeClaire State Bank,
LeClaire, Iowa
Farmers Savings
Bank,
Princeton, Iowa
SafraBank, II, N.A.,
Pompano Beach,
Florida
West Bank and Trust,
Green Bay, Wisconsin
East Bank,
Green Bay, Wisconsin
United Bank of Green
Bay,
Green Bay, Wisconsin
Unibank Services,
Inc.,
Green Bay, Wisconsin
SafraCorp,
Miami, Florida
Valley Bancorporation,
Appleton, Wisconsin
Nonbanking
company
(or activity)
Reserve
Bank
Effective
date
Chicago
November 26, 1981
Chicago
November 26, 1982
to engage in lending
activities
Atlanta
November 5, 1982
to engage in leasing of
personal property
Chicago
November 19, 1982
to engage in
of general
to engage in
of general
the sale
insurance
the sale
insurance
802
Federal Reserve Bulletin • December 1982
ORDERS APPROVED
UNDER BANK MERGER
ACT
By Federal Reserve Banks
Applicant
Bank(s)
First Virginia—Franklin County,
Rocky Mount, Virginia
Farmers and Merchants Bank,
Boones Mill,
Franklin County, Virginia
PENDING
CASES INVOLVING
THE BOARD OF
Inc.
v. Board
of Governors,
filed
October 1982, U.S.D.C. for the District of Columbia.
Association
of Data Processing
Service
Organizations, Inc., et al. v. Board of Governors,
filed
August 1982, U.S.C. A. for the District of Columbia.
The Philadelphia
Clearing House Association,
et al. v.
Board of Governors, filed July 1982, U.S.D.C. for
the Eastern District of Pennsylvania.
Richter v. Board of Governors,
et al., filed May 1982,
Montgomery v. Utah, et al., filed May 1982, U.S.D.C.
v. Board of Governors,
filed
May 1982, U.S.C.A. for the Tenth Circuit.
v. Board
of Governors,
filed
April 1982, U.S.C.A. for the Tenth Circuit.
Charles G. Vick v. Paul A. Volcker, et al., filed March
1982, U.S.D.C. for the District of Columbia.
Jolene Gustafson
v. Board of Governors, filed March
1982, U.S.C.A. for the Fifth Circuit.
Option Advisory Service, Inc. v. Board of
Governors,
filed December 1981, U.S.C.A. for the Second
Circuit.
Edwin F. Gordon v. Board of Governors,
et al., filed
October 1981, U.S.C.A. for the Eleventh Circuit
(two consolidated cases).
Allen Wolfson v. Board of Governors, filed September
1981, U.S.D.C. for the Middle District of Florida.
Governors,
filed September 1981, U.S.C.A. for the Second
Circuit (two cases).
Association,
Inc., et al. v. Board of
Governors, filed July 1981, U.S.D.C. for the Northern District of Georgia.
Public
Interest
Bounty Hunters
v. Board of
Gover-
nors, et al., filed June 1981, U.S.D.C. for the
Northern District of Georgia.
Edwin F. Gordon v. John Heimann,
et al., filed May
1981, U.S.C.A. for the Fifth Circuit.
First Bank & Trust Company v. Board of
Governors,
filed February 1981, U.S.D.C. for the Eastern District of Kentucky.
Board
of
for
Governors,
Women
filed
Office
Workers
December
v.
1980,
U.S.D.C. for the District of Massachusetts.
for the District of Utah.
First Bancorporation
November 9, 1982
9 to 5 Organization
U.S.D.C. for the Northern District of Illinois.
Wyoming Bancorporation
Richmond
Option Advisory Service, Inc. v. Board of
Bank Stationers
Banks,
Effective
date
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.
Flagship
Reserve
Bank
Securities
Industry Association
v. Board of
Gover-
nors, et al., filed October 1980, U.S.D.C. for the
District of Columbia.
Securities
Industry Association
v. Board of
Gover-
nors, et al., filed October 1980, U.S.C.A. for the
District of Columbia.
A. G. Becker, Inc. v. Board of Governors,
et al., filed
October 1980, U.S.D.C. for the District of Columbia.
A. G. Becker, Inc. v. Board of Governors,
et al., filed
October 1980, U.S.C.A. for the District of Columbia.
A. G. Becker, Inc. v. Board of Governors,
et al., filed
August 1980, U.S.D.C. for the District of Columbia.
Berkovitz,
et al. v. Government
of Iran, et al.,
filed
June 1980, U.S.D.C. for the Northern District of
California.
A1
Financial and Business Statistics
CONTENTS
Domestic
A3
A4
A5
A6
WEEKLY REPORTING
Financial
Statistics
Monetary aggregates and interest rates
Reserves of depository institutions, Reserve
Bank credit
Reserves and borrowings of depository
institutions
Federal funds and repurchase agreements of
large member banks
BANKS
Assets and liabilities
A19
All reporting banks
A20
Banks with assets of $1 billion or more
A21
Banks in New York City
A22
Balance sheet memoranda
A23
Branches and agencies of foreign banks
A24 Commercial and industrial loans
A25 Gross demand deposits of individuals,
partnerships, and corporations
FINANCIAL
POLICY
COMMERCIAL
MARKETS
INSTRUMENTS
A7
A8
A9
Federal Reserve Bank interest rates
Depository institutions reserve requirements
Maximum interest rates payable on time and
savings deposits at federally insured institutions
A l l Federal Reserve open market transactions
FEDERAL RESERVE
BANKS
A12 Condition and Federal Reserve note statements
A13 Maturity distribution of loan and security
holdings
MONETARY
AND CREDIT
AGGREGATES
A13 Aggregate reserves of depository institutions
and monetary base
A14 Money stock measures and components
A15 Bank debits and deposit turnover
A16 Loans and securities of all commercial banks
COMMERCIAL
BANKS
A17 Major nondeposit funds
A18 Assets and liabilities, last Wednesday-of-month
series
A26 Commercial paper and bankers dollar
acceptances outstanding
A27 Prime rate charged by banks on short-term
business loans
A27 Terms of lending at commercial banks
A28 Interest rates in money and capital markets
A29 Stock market—Selected statistics
A30 Selected financial institutions—Selected assets
and liabilities
FEDERAL
A31
A32
A33
A33
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
A33 U.S. government marketable securities—
Ownership, by maturity
A34 U.S. government securities dealers—
Transactions, positions, and financing
A35 Federal and federally sponsored credit
agencies—Debt outstanding
82
Federal Reserve Bulletin • December 1982
International
SECURITIES MARKETS
AND
CORPORATE
FINANCE
A36 New security issues—State and local
governments and corporations
A37 Open-end investment companies—Net sales and
asset position
A37 Corporate profits and their distribution
A38 Nonfinancial corporations—Assets and
liabilities
A38 Total nonfarm business expenditures on new
plant and equipment
A39 Domestic finance companies—Assets and
liabilities; business credit
REAL
ESTATE
A40 Mortgage markets
A41 Mortgage debt outstanding
CONSUMER
INSTALLMENT
CREDIT
A42 Total outstanding and net change
A43 Extensions and liquidations
FLOW OF
Nonfinancial
Statistics
A46 Nonfinancial business activity—Selected
measures
A46 Output, capacity, and capacity utilization
A47 Labor force, employment, and unemployment
A48 Industrial production—Indexes and gross value
A50 Housing and construction
A51 Consumer and producer prices
A52 Gross national product and income
A53 Personal income and saving
A54
A55
A55
A55
U.S. international transactions—Summary
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
A56 Foreign branches of U.S. banks—Balance sheet
data
A58 Selected U.S. liabilities to foreign official
institutions
REPORTED
BY BANKS
IN THE UNITED
STATES
A58
A59
A61
A62
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A62 Banks' own claims on unaffiliated foreigners
A63 Claims on foreign countries—Combined
domestic offices and foreign branches
REPORTED BY NONBANKING
ENTERPRISES IN THE UNITED
BUSINESS
STATES
A64 Liabilities to unaffiliated foreigners
A65 Claims on unaffiliated foreigners
FUNDS
A44 Funds raised in U.S. credit markets
A45 Direct and indirect sources of funds to credit
markets
Domestic
Statistics
SECURITIES
HOLDINGS
AND
TRANSACTIONS
A66 Foreign transactions in securities
A67 Marketable U.S. Treasury bonds and notes—
Foreign holdings and transactions
INTEREST AND EXCHANGE
RATES
A67 Discount rates of foreign central banks
A68 Foreign short-term interest rates
A68 Foreign exchange rates
A69 Guide to Tabular
Presentation,
Statistical Releases, and Special
Tables
Domestic Financial Statistics
1.10
A3
MONETARY A G G R E G A T E S A N D INTEREST RATES
1981
1982
1982
Item
Q4
Q2
Q1
Q3
June
July
Aug.
Sept.
Oct.
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent) 1
1
2
3
4
Reserves of depository
Total
Required
Nonborrowed
Monetary base 2
institutions
s
6
7
8
Concepts of money and liquid
Ml
M2
M3
L
3.1
3.5
10.9
3.8
7.5
7.1
-.9
7.8
.6
1.1
4.2
7.1
4.8
4.6
11.2
6.5
2.2
3.8
-.5
7.7
5.7
8.9
9.3
10.7
10.4
9.8
8.7
10.3
3.3
9.5
10.7
12.0 r
3.5
9.7
12.1'
11.6
-.3
6.6
8.8
10,9 r
8.3
-11.9
20.8
5.4
2.7
7.5
8.7
9.7
4.6
3.1
17.1
2.0
23.8
17.0
6.6
17.8
-9.7
21.3
26.7
6.8
17.3
-4.5
15.8
29.6
3.8
22.9
-21.8
29.1
36.4
10.4
3.6
2.6
8.6
6.0
5.2
6.3
8.8
8.9
14.5
6.8
23.6
21.5
10.7
12.2
9.4
8.9
23.8
6.8
10.4
14.3
18.5 r
11.3
14.0
5.0
3.9
n.a.
20.3
8.3
9.2
n.a.
16.5'
-8.4
20.3
23.0
6.3
4.0
5.4
8.8
-1.6
-.3
.4
20.7
-9.6
2.6
5.8
4.4
6.8
-1.6
-1.8
14.8
2.8
assets3
Time and savings deposits
Commercial banks
9
Total
10
Savings 4
11
Small-denomination time 5
12
Large-denomination time 6
13 Thrift institutions 7
14 Total loans and securities at commercial banks 8
1981
Q4
-.3
9.7
12.6
14.2 r
1982
Q2
Q1
6.6
1982
Q3
July
Aug.
Sept.
Oct.
Nov.
Interest rates (levels, percent per annum)
15
16
17
18
Short-term rates
Federal funds 9
Discount window borrowing 1 0
Treasury bills (3-month market yield)"
Commercial paper ( 3 - m o n t h ) 1 1 1 2
Long-term rates
Bonds
19
U.S. government 1 3
20
State and local government 1 4
21
Aaa utility (new issue) 1 22 Conventional mortgages 1 6
13.59
13.04
11.75
13.04
14.23
12.00
12.81
13.81
14.52
12.00
12.42
13.81
11.01
10.83
9.32
11.15
12.59
11.81
11.35
12.94
10.12
10.68
8.68
10.15
10.31
10.00
7.92
10.36
9.71
9.68
7.71
9.20
9.20
9.35
8.07
8.69
14.14
12.54
15.67
17.33
14.27
13.02
15.71
17.10
13.74
12.33
15.73
16.63
12.94
11.39
14.25
15.65
13.76
12.28
15.61
16.50
12.91
11.23
13.95
15.40
12.16
10.66
13.52
15.05
10.97
9.69
12.20
13.95
10.57
10.06
11.76
13.80
1. Unless otherwise noted, rates of change are calculated from average amounts
outstanding in preceding month or quarter.
2. Includes reserve balances at Federal Reserve Banks in the current week plus
vault cash held two weeks earlier used to satisfy reserve requirements at all depository institutions plus currency outside the U.S. Treasury. Federal Reserve Banks,
the vaults of depository institutions, and surplus vault cash at depository institutions.
3. M l : Averages of daily figures for (1) currency outside the Treasury. Federal
Reserve Banks, and the vaults of commercial banks; (2) traveler's checks of nonbank issuers; (3) demand deposits at all commercial banks other than those due
to domestic banks, the U.S. government, and foreign banks and official institutions
less cash items in the process of collection and Federal Reserve float; and (4)
negotiable order of withdrawal ( N O W ) and automatic transfer service (ATS) accounts at banks and thrift institutions, credit union share draft (CUSD) accounts,
and demand deposits at mutual savings banks.
M2: M l plus savings and small-denomination time deposits at all depository
institutions, overnight repurchase agreements at commercial banks, overnight Eurodollars held by U.S. residents other than banks at Caribbean branches of member
banks, and balances of money market mutual funds (general purpose and broker/
dealer).
M3: M2 plus large-denomination time deposits at all depository institutions and
term RPs at commercial banks and savings and loan associations and balances of
institution-only money market mutual funds.
L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents
other than banks, bankers acceptances, commercial paper. Treasury bills and other
liquid Treasury securities, and U.S. savings bonds.
4. Savings deposits exclude N O W and ATS accounts at commercial banks and
thrifts and C U S D accounts at credit unions.
5. Small-denomination time deposits—including retail RPs—are those issued in
amounts of less than $100,000.
6. Large-denomination time deposits are those issued in amounts of $100,000 or
more.
7. Savings and loan associations, mutual savings banks, and credit unions.
8. Changes calculated from figures shown in table 1.23. Beginning December
1981, growth rates reflect shifts of foreign loans and securities from U.S. banking
offices to international banking facilities.
9. Averages of daily effective rates (average of the rates on a given date weighted
by the volume of transactions at those rates).
10. Rate for the Federal Reserve Bank of New York.
11. Quoted on a bank-discount basis.
12. Unweighted average of offering rates quoted by at least five dealers.
13. Market yields adjusted to a 20-year maturity by the U.S. Treasury.
14. Bond Buyer series for 20 issues of mixed quality.
15. Weighted averages of new publicly offered bonds rated Aaa. A a . and A by
Moody's Investors Service and adjusted to an Aaa basis. Federal Reserve compilations.
16. Average rates on new commitments for conventional first mortgages on new
homes in primary markets, unweighted and rounded to nearest 5 basis points, from
Dept. of Housing and Urban Development.
NOTE. Revisions in reserves of depository institutions reflect the transitional
phase-in of reserve requirements as specified in the Monetary Control Act of 1980.
A4
1.11
DomesticNonfinancialStatistics • December 1982
R E S E R V E S OF D E P O S I T O R Y INSTITUTIONS, R E S E R V E B A N K C R E D I T
Millions of dollars
Monthly averages of
daily figures
Sept.
Weekly averages of daily figures for week ending
Oct
Oct. 13
Oct. 20
Oct. 27
Nov. 3
Nov. 10
Nov. 17
Nov. 24?
SUPPLYING R E S E R V E FUNDS
1 Reserve Bank credit outstanding
2
3
4
5
6
7
8
9
10
11
12
13
14
U.S. government securities 1
Bought outright
Held under repurchase agreements
Federal agency securities
Bought outright
Held under repurchase agreements
Acceptances
Loans
Float
Other Federal Reserve assets
Gold stock
Special drawing rights certificate account. . .
Treasury currency outstanding
153,324
153,666
156,110
152,566
155,737
153,777
153,630
154,473
156,764
131,920
131,436
484
9,042
8,951
91
159
976
2,123
9,104
11,148
4,118
13,786
132,374
132,093
281
9,069
8,945
124
112
455
1,952
9,704
11,148
4.218
13,786
134,461
134,207
254
8,981
8,943
38
47
579
2,689
9,353
11,148
4,371
13,786
131,389
131,389
132,752
132,752
132,280
132,280
.215
,215
8,943
8,943
8,943
8,943
1,943
1,943
365
2,291
9,574
11,148
4,218
13,786
133,593
133,011
582
9,048
8,943
105
140
516
2,730
9,710
11,148
4.218
13,786
452
1,731
9,900
11,148
4,218
13,786
458
1,858
9,091
11,148
4,218
13,786
722
:,669
1,924
,148
1,304
1,786
134.879
134,626
253
9,001
8,943
58
74
742
2,707
9,361
11,148
4,418
13,786
148,631
415
149,174
436
151.288
449
149,828
436
149,675
439
148,807
440
149,337
443
150,631
151,535
452
4,062
264
509
2,932
262
540
3.097
273
569
2.819
248
532
2.858
287
537
2,774
253
550
2,654
313
502
3,256
256
463
3,108
259
596
4,836
23,385
4,898
24,252
4,785
24,563
4,982
22.555
4,908
25,854
4,830
24,929
4,802
24,366
4,818
23,457
0
8,947
8,947
0
0
0
0
0
0
0
0
0
0
0
ABSORBING R E S E R V E FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserves, with Federal
Reserve Banks
17
Treasury
18
Foreign
19
Other
20
Required clearing balances
21 Other Federal Reserve liabilities and
capital
22 Reserve accounts 2
382
End-of-month figures
4.786
24,987
Wednesday figures
1982
Oct. 20
Sept.
Oct. 27
Nov. 3
Nov. 10
SUPPLYING R E S E R V E FUNDS
156,502
152,760
159,079
154,442
161,798
154,768
156,078
157,538
155,157
U.S. government securities 1
Bought outright
Held under repurchase agreements . . .
Federal agency securities
Bought outright
Held under repurchase agreements . . .
Acceptances
Loans
Float
Other Federal Reserve assets
134,393
130,591
3,802
9,950
8,949
1,001
813
1,123
550
9,673
132.080
132,080
137,676
137,676
131,459
131.459
132,604
132,604
132,105
132,105
133,057
133,057
133,861
133,861
8,943
8,943
8,943
8.943
8.943
8.943
8,943
8,943
8,943
8,943
8,943
8,943
8,943
8,943
438
1,168
10,131
374
2.401
9,685
354
3.945
9.741
135,926
131,849
4,077
9,680
8.943
737
981
1.617
3.439
10,155
822
2,293
10,106
758
3,936
10,336
3,208
2,215
10,115
425
3,324
8,604
34 Gold stock
35 Special drawing rights certificate account
36 Treasury currency outstanding
11,148
4,218
13,786
11.148
4,218
13,786
11,148
4,418
13,786
11.148
4,218
13,786
11,148
4,218
13,786
11,148
4,218
13,786
11,148
4,218
13,786
11,148
4,418
13,786
11,148
4,418
13,786
148,093
423
148,922
444
152,895
444
150.508
437
149,553
440
149,195
442
150,167
442
151,680
452
151,708
450
10,975
396
405
300
2,309
327
450
356
2,247
387
717
408
2.980
211
516
312
3,200
287
552
321
3,169
220
465
338
3,154
300
467
355
3,166
290
554
378
3,836
214
548
392
5.047
20.015
4.783
24,321
5.209
26.124
4.745
23.885
4,839
31,758
4,653
25,438
4,618
25,727
4,624
25,746
4,629
22,733
23 Reserve Bank credit outstanding
24
25
26
27
28
29
30
31
32
33
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
ABSORBING R E S E R V E FUNDS
37 Currency in circulation
38 Treasury cash holdings
Deposits, other than reserves, with Federal
Reserve Banks
39
Treasury
40
Foreign
41
Other
42 Required clearing balances
43 Other Federal Reserve liabilities and
capital
44 Reserve accounts 2
1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Excludes required clearing balances,
NOTE. For amounts of currency and coin held as reserves, see table 1.12.
Depository Institutions
1.12
RESERVES A N D BORROWINGS
Millions of dollars
A5
Depository Institutions
Monthly averages of daily figures
Reserve classification
Dec.
1 Reserve balances with Reserve Banks 1 . . . .
2 Total vault cash (estimated)
3
Vault cash at institutions with required
reserve balances 2
4
Vault cash equal to required reserves at
other institutions
Surplus vault cash at other institutions 3 .
5
6 Reserve balances + total vault cash 4
7 Reserve balances + total vault cash used
to satisfy reserve requirements 4 - 5
8 Required reserves (estimated)
9 Excess reserve balances at Reserve Banks 4 - 6
Total borrowings at Reserve Banks
10
11
Seasonal borrowings at Reserve Banks
12
Extended credit at Reserve Banks . . . .
1982
1981
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.P
26.163
19.538
24.254
18,749
24,565
18,577
24,207
19,048
24.031
19,318
24,273
19,448
24,471
19,500
23.385
19,921
24,252
19,578
24,563
19,804
13,577
12,663
12,709
12,972
13,048
13,105
13,188
13,651
13,658
13,909
2,178
3,783
45,701
2.313
3,773
43,003
2.284
3,584
43.142
2,373
3,703
43.255
2,488
3,782
43,349
2,486
3,857
43,721
2,518
3,794
43,971
2,927
3.343
43,306
2,677
3,243
43,830
2,689
3,206
44.367
41,918
41,606
312
642
53
149
39.230
38,873
357
1,611
174
309
39,558
39,284
274
1,581
167
245
39,552
39,192
360
1.105
237
177
39,567
39,257
310
1,205
239
103
39,864
39.573
291
669
225
46
40,177
39,866
311
510
119
94
39,963
39,579
384
976
102
118
40,587
40.183
404
455
86
141
41,161
40,798
363
579
47
188
Weekly averages of daily figures for week ending
1982
Sept. 22
13 Reserve balances with Reserve Banks 1 . . . .
14 Total vault cash (estimated)
15
Vault cash at institutions with required
reserve balances 2
Vault cash equal to required reserves at
16
other institutions
17
Surplus vault cash at other institutions 3 .
18 Reserve balances + total vault cash 4
19 Reserve balances + total vault cash used
to satisfy reserve requirements 4 - 5
20 Required reserves (estimated)
21 Excess reserve balances at Reserve Banks 4 - 6
Total borrowings at Reserve Banks
22
23
Seasonal borrowings at Reserve Banks
24
Extended credit at Reserve Banks . . . .
Sept. 29
Oct. 6
Oct. 20
Oct. 27
Nov. 3
Nov. 10
Nov. 17
Nov. 24p
24,543
18,744
23.486
20,422
23.496
20,045
22,555
20,327
25,854
18,391
24,929
19,280
24,366
20,166
23,457
20,175
24,987
19,905
25,338
18,687
13,251
14.131
13,983
13,762
13.014
13.683
14,070
13,904
13,662
13,543
2.460
3,033
43,287
2,934
3,357
43,908
2.769
3.293
43,541
3,032
3,533
42,882
2,370
3,007
44,245
2,476
3,121
44,209
2,807
3,289
44,532
2,948
3,323
43,632
2,884
3,359
44,892
2.289
2,855
44.025
40,254
40.004
250
810
100
118
40,551
40,266
285
753
112
124
40,248
39,737
511
606
104
123
39,349
38,887
462
365
70
117
41,238
40.977
261
516
85
110
41,088
40,769
319
452
90
179
41,243
40,701
542
458
73
196
40,309
39,967
342
722
50
190
41,533
41,135
398
742
48
188
41,170
40,858
312
467
46
186
1. As of Aug. 13, 1981, excludes required clearing balances of all depository
institutions.
2. Before Nov. 13, 1980, the figures shown reflect only the vault cash held by
member banks.
3. Total vault cash at institutions without required reserve balances less vault
cash equal to their required reserves.
4. Adjusted to include waivers of penalties for reserve deficiencies in accordance
with Board policy, effective Nov. 19, 1975, of permitting transitional relief on a
graduated basis over a 24-month period when a nonmember bank merged into an
Oct. 13
existing member bank, or when a nonmember bank joins the Federal Reserve
System. For weeks for which figures are preliminary, figures by class of bank do
not add to total because adjusted data by class are not available.
5. Reserve balances with Federal Reserve Banks, which exclude required clearing balances plus vault cash at institutions with required reserve balances plus vault
cash equal to required reserves at other institutions.
6. Reserve balances with Federal Reserve Banks, which exclude required clearing balances plus vault cash used to satisfy reserve requirements less required
reserves. (This measure of excess reserves is comparable to the old excess reserve
concept published historically.)
A6
1.13
DomesticNonfinancialStatistics • December 1982
FEDERAL FUNDS A N D REPURCHASE AGREEMENTS
Averages of daily figures, in millions of dollars
Large Member Banks 1
1982, week ending Wednesday
By maturity and source
Sept. 29
One day and continuing contract
1 Commercial banks in United States
2 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies .
i Nonbank securities dealers
4 All other
Oct. 20
Oct. 21r
Nov. 3
Nov. 10
Nov. 17
Nov. 24
50,961 r
60,508 r
62,405 r
56,073
52,462
55,305
61,256
59,847
55,162
24,162 r
5,077
21,228
23,153
5.866
22,012
26,020
5,878
22,814
25,399
5,703
23,922
25,141
5,619
23,766
25,822
5,144
24,429
25,118
5,589
24,060
24,369
5,156
23,808
4,400
4,212
4,461
4,044
3,955
4,515
3,900
3,847
4,219
8,171
5,643
9,289
8,065
4,469
8,745 r
8,740
4,827
9,165
8,473
4,838
8,798
8,285
4,853
8,620
8,516
5,287
9,683
8,821
4,614
8,779
8,917
4,821
8,724
9,118
4,561
9,443
24,214
4,576
28,305 r
4.870
28,045
5,336
25,163
5,409
24,207
5,394
25,903
5,166
25,394
5,453
25,998
5,431
21,865
5,897
1. Banks with assets of SI billion or more as of Dec. 31, 1977.
Oct. 13
24,267
4.710
20,728
All other maturities
5 Commercial banks in United States
6 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies .
7 Nonbank securities dealers
8 All other
MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract
9 Commercial banks in United States
10 Nonbank securities dealers
Oct. 6
Policy Instruments
1.14
All
F E D E R A L R E S E R V E B A N K INTEREST R A T E S
Percent per annum
C u r r e n t and previous levels
E x t e n d e d credit 1
S h o r t - t e r m a d j u s t m e n t credit
a n d s e a s o n a l credit
Federal Reserve
Bank
First 60 days
of borrowing
Next 90 days
of b o r r o w i n g
A f t e r 150 days
Effective date
f o r c u r r e n t rates
Effective
date
Previous
rate
Boston
New Y o r k . . .
Philadelphia .
Cleveland . . .
Richmond...
Atlanta
11/22/82
11/22/82
11/22/82
11/26/82
11/22/82
11/22/82
9Vi
Chicago
St. Louis
Minneapolis .
K a n s a s City .
Dallas
San Francisco
11/22/82
11/22/82
11/22/82
11/22/82
11/23/82
11/22/82
Rate on
11/30/82
Previous
rate
R a t e on
11/30/82
R a t e on
11/30/82
Previous
rate
Previous
rate
10W
9Vi
9Vi
9Vi
Rate on
11/30/82
11VS
11/22/82
11/22/82
11/22/82
11/26/82
11/22/82
11/22/82
11/22/82
11/22/82
11/22/82
11/22/82
11/23/82
11/22/82
llVi
lOVi
R a n g e of rates in recent years 2
Effective date
In effect D e c . 31, 1973.
1974— A p r . 25
30
Dec. 9
16
1975— J a n .
6
10
24
Feb.
5
7
M a r . 10
14
M a y 16
23
1976— J a n . 19
23
N o v . 22
26
1977— A u g . 30
31
Sept.
2
O c t . 26
1978— J a n .
May
9
20
11
12
R a n g e (or
level)—
All F . R .
Banks
IVi
7Vi-8
8
7V4-8
73/4
3
7V4-7 /4
7V4-73/4
7Vi
63/4
6V4-63/4
6V4
6-61/4
6
5W-6
5Vi
5V4-5VS
5V4
51/4-53/4
5V4-53/4
53/4
F.R.
Bank
of
N.Y.
IVi
73/4
73/4
73/4
7V4
7V4
63/4
63/4
6V4
6V4
6
6
5W
5Vi
5V4
5V4
5V4
53/4
53/4
Effective d a t e
1978— July
3.
10.
A u g . 21.
Sept. 22.
Oct. 16.
20.
Nov.
1979— July 20.
A u g . 17.
Sept.
Oct.
20.
19.
21.
8.
10.
1980— F e b .
May
June
6
July
6V5
6Vi-7
7
7
7
Sept.
Nov.
Dec.
6Vi
7-7!/4
7V4
73/4
8 - 8 Vi
8Vi
8Vi-9Vi
9Vi
F.R.
Bank
of
N.Y.
7V4
7V4
73/4
8
8 V4
8V4
91/!
9Vi
Effective d a t e
1981— M a y
Nov.
Dec.
5.
8.
2.
6.
4.
1982— July
20.
23.
2.
3.
16.
27.
30.
O c t . 12.
13.
Nov. 22.
Aug.
6-6V2
6V2
6
1.
3.
R a n g e (or
level)—
All F.R.
Banks
15.
19.
29.
30.
13.
16.
28.
29.
26.
17.
5.
10
lO-lOVi
lOVi
10V4-11
11
11-12
12
12-13
13
12-13
12
11-12
11
10-11
10
11
12
12-13
13
10
lOVi
10W
11
11
12
12
26.
R a n g e (or
level)—
All F . R .
Banks
F.R.
Bank
of
N.Y.
13-14
14
13-14
13
12
14
14
13
13
12
llVi-12
11 Vi
11-1IVi
11
lOVi
KMOVi
10
9Vi-10
9Vi
9-9W
9
llVi
llVi
11
11
lOVi
10
10
9Vi
9 Vi
9
9
13
13
13
12
11
11
10
10
11
12
13
13
In effect N o v . 30, 1982
1. A p p l i c a b l e to a d v a n c e s w h e n exceptional circumstances or practices involve
only a particular d e p o s i t o r y institution a n d to advances w h e n an institution is u n d e r
sustained liquidity pressures. See section 201.3(b)(2) of R e g u l a t i o n A .
2. R a t e s f o r s h o r t - t e r m a d j u s t m e n t credit. For description and earlier d a t a see
the following publications of the B o a r d of G o v e r n o r s : Banking and
Monetary
Statistics, 1914-1941 a n d 1941-1970; Annual Statistical Digest, 1970-1979, and 1980.
In 1980 a n d 1981, the F e d e r a l R e s e r v e applied a surcharge to s h o r t - t e r m adj u s t m e n t credit borrowings by institutions with deposits of $500 million or m o r e
that h a d b o r r o w e d in successive w e e k s or in m o r e t h a n 4 w e e k s in a calendar
q u a r t e r . A 3 p e r c e n t surcharge was in effect f r o m M a r . 17, 1980, t h r o u g h M a y 7,
1980. T h e r e was n o surcharge until N o v . 17, 1980, w h e n a 2 p e r c e n t surcharge was
a d o p t e d ; the surcharge was subsequently raised to 3 p e r c e n t on D e c . 5, 1980, and
to 4 p e r c e n t on M a y 5, 1981. T h e surcharge was r e d u c e d to 3 p e r c e n t effective
Sept. 22, 1981, a n d to 2 p e r c e n t effective O c t . 12. A s of O c t . 1, the f o r m u l a for
applying the surcharge was c h a n g e d f r o m a c a l e n d a r q u a r t e r to a moving 13-week
period. T h e surcharge was eliminated on Nov. 17, 1981.
A8
DomesticNonfinancialStatistics • December 1982
D E P O S I T O R Y INSTITUTIONS R E S E R V E R E Q U I R E M E N T S 1
Percent of deposits
1.15
Type of deposit, and deposit interval
in millions of dollars
Member bank requirements
before implementation of the
Monetary Control Act
Type of deposit, and
deposit interval
Effective date
Net
2
7
9Vi
113/4
2-10
10-100
3
12 /4
100-400
Over 400
Time and
Savings
I6V4
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
savings2,3
Time 4
0-5, by maturity
30-179 days
180 days t o 4 years
4 years or more . . .
Over 5, by maturity
30-179 days
180 days to 4 years
4 years or more . . .
3
3/16/67
1/8/76
10/30/75
6
12/12/74
1/8/76
10/30/75
2 Vi
1
2Vi
1
1. For changes in reserve requirements beginning 1963, see Board's Annual
Statistical Digest, 1971-1975 and for prior changes, see Board's Annual Report for
1976, table 13. U n d e r provisions of the Monetary Control Act, depository institutions include commercial banks, mutual savings banks, savings and loan associations, credit unions, agencies and branches of foreign banks, and Edge Act
corporations.
2. Requirement schedules are graduated, and each deposit interval applies to
that part of the deposits of each bank. D e m a n d deposits subject to reserve requirements were gross demand deposits minus cash items in process of collection
and demand balances due from domestic banks.
The Federal Reserve Act as amended through 1978 specified different ranges of
requirements for reserve city banks and for other banks. Reserve cities were designated under a criterion adopted effective Nov. 9, 1972, by which a bank having
net demand deposits of more than $400 million was considered to have the character
of business of a reserve city bank. The presence of the head office of such a bank
constituted designation of that place as a reserve city. Cities in which there were
Federal Reserve Banks or branches were also reserve cities. Any banks having net
demand deposits of $400 million or less were considered to have the character of
business of banks outside of reserve cities and were permitted to maintain reserves
at ratios set for banks not in reserve cities.
Effective Aug. 24, 1978, the Regulation M reserve requirements on net balances
due from domestic banks to their foreign branches and on deposits that foreign
branches lend to U.S. residents were reduced to zero from 4 percent and 1 percent
respectively. T h e Regulation D reserve requirement on borrowings from unrelated
banks abroad was also reduced to zero from 4 percent.
Effective with the reserve computation period beginning Nov. 16,1978, domestic
deposits of Edge corporations were subject to the same reserve requirements as
deposits of member banks.
3. Negotiable order of withdrawal ( N O W ) accounts and time deposits such as
Christmas and vacation club accounts were subject to the same requirements as
savings deposits.
The average reserve requirement on savings and other time deposits before
implementation of the Monetary Control Act had to be at least 3 percent, the
minimum specified by law.
4. Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent was
imposed on large time deposits of $100,000 or more, obligations of affiliates, and
ineligible acceptances. This supplementary requirement was eliminated with the
maintenance period beginning July 24, 1980.
Effective with the reserve maintenance period beginning Oct. 25, 1979, a marginal reserve requirement of 8 percent was added to managed liabilities in excess
of a base amount. This marginal requirement was increased to 10 percent beginning
Apr. 3, 1980, was decreased to 5 percent beginning June 12,1980, and was reduced
to zero beginning July 24, 1980. Managed liabilities are defined as large time
deposits, Eurodollar
borrowings, repurchase agreements against
U.S.
Effective date
6,7
demand
0-2
Depository institution requirements
after implementation of the
Monetary Control Act 5
Net transaction
accounts
$0-$26 million
Over $26 million
11/13/80
H/13/80.
f
Nonpersonal time deposits
By original maturity
Less than 3Pi years . . . .
3V2 years or more
4/29/82
4/29/82
Eurocurrency
All types
11/13/80
liabilities
government and federal agency securities, federal funds borrowings f r o m nonmember institutions, and certain other obligations. In general, the base for the
marginal reserve requirement was originally the greater of (a) $100 million or (b)
the average amount of the managed liabilities held by a m e m b e r bank, Edge
corporation, or family of U.S. branches and agencies of a foreign bank for the two
statement weeks ending Sept. 26,1979. F o r the computation period beginning M a r .
20,1980, the base was lowered by (a) 7 percent or (b) the decrease in an institution's
U.S. office gross loans to foreigners and gross balances due from foreign offices
of other institutions between the base period (Sept. 13—26, 1979) and the week
ending Mar. 12,1980, whichever was greater. For the computation period beginning
May 29,1980, the base was increased by iVi percent above the base used to calculate
the marginal reserve in the statement week of May 14-21, 1980. In addition,
beginning Mar. 19, 1980, the base was reduced to the extent that foreign loans and
balances declined.
5. For existing nonmember banks and thrift institutions at the time of implementation of the Monetary Control Act, the phase-in period ends Sept. 3, 1987.
For existing member banks the phase-in period is about three years, depending on
whether their new reserve requirements are greater or less than the old requirements. For existing agencies and blanches of foreign banks, the phase-in ended
Aug. 12, 1982. New institutions have a two-year phase-in beginning with the date
that they open for business, except for those institutions having total reservable
liabilities of $50 million or more.
6. 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.
7. The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement will apply be modified
annually to 80 percent of the percentage increase in transaction accounts held by
all depository institutions on the previous June 30. At the beginning of 1982 the
amount was accordingly increased f r o m $25 million to $26 million.
8. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which the 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 .
The category of time deposit authorized by the Depository Institutions Deregulation Committee ( D I D C ) , effective Sept. 1, 1982 (original maturity or required
notice period of 7 to 31 days, required minimum deposit balance of $20,000, and
ceiling rate tied to the 91-day Treasury bill rate), is classified as a time deposit for
reserve requirement purposes.
NOTE. Required reserves must be held in the form of deposits with Federal
Reserve Banks or vault cash. A f t e r implementation of the Monetary Control A c t ,
nonmembers may maintain reserves on a pass-through basis with certain approved
institutions.
Policy Instruments
1.16
All
M A X I M U M INTEREST R A T E S P A Y A B L E on Time and Savings Deposits at Federally Insured Institutions
Percent per annum
Savings and loan associations and
mutual savings banks (thrift institutions)
Commercial banks
In effect November 30, 1982
Type and maturity of deposit
Previous maximum
Effective
date
Effective
date
1 Savings
2 Negotiable order of withdrawal accounts
5lA
2
..
51/4
In effect November 30, 1982
7/1/73
1/1/74
7/1/79
12/31/80
Effective
date
5Vz
5V4
Previous maximum
Percent
5V4
7/1/79
12/31/80
5
Effective
date
(*)
1/1/74
3
Time accounts
Fixed ceiling rates by maturity 4
14-89 days '
90 days to 1 year
1 to 2 years '
2 to 2Vi years 7
21/2 to 4 years 7
4 to 6 years 8
6 to 8 years 8
8 years or more 8
Issued to governmental units (all
maturities) 10
12
I R A s and Keogh ( H . R . 10) plans (3 years
or more) ™ u
3
4
5
6
7
8
9
10
11
5 »/4
8/1/79
5 3 /4
1/1/80
7V4
7 Vi
73/4
7'/4
11/1/73
6/1/78
7 3 /4
12/23/74
8
6/1/78
6/1/78
7 3 /4
7/6/77
8
6/1/78
7/1/73
11/1/73
12/23/74
6/1/78
1. July 1, 1973, for mutual savings banks; July 6, 1973, for savings and loans.
2. Federally insured commercial banks, savings and loan associations, cooperative
banks, and mutual savings banks in Massachusetts and New Hampshire were first
permitted to offer negotiable order of withdrawal (NOW) accounts on Jan. 1, 1974.
Authorization to issue N O W accounts was extended to similar institutions throughout New England on Feb. 27, 1976, in New York State on Nov. 10, 1978, New
Jersey on Dec. 28, 1979, and to similar institutions nationwide effective Dec. 31,
1980.
3. For exceptions with respect to certain foreign time deposits see the BULLETIN
for October 1962 (p. 1279), August 1965 (p. 1084), and February 1968 (p. 167).
4. Effective Nov. 10, 1980, the minimum notice period for public unit accounts
at savings and loan associations was decreased to 14 days and the minimum maturity
period for time deposits at savings and loan associations in excess of $100,000 was
decreased to 14 days. Effective Oct. 30, 1980, the minimum maturity or notice
period for time deposits was decreased from 30 to 14 days at mutual savings banks.
5. Effective Oct. 30, 1980, the minimum maturity or notice period for time
deposits was decreased from 30 to 14 days at commercial banks.
6. No separate account category.
7. No minimum denomination. Until July 1, 1979, a minimum of $1,000 was
required for savings and loan associations, except in areas where mutual savings
banks permitted lower minimum denominations. This restriction was removed for
deposits maturing in less than 1 year, effective Nov. 1, 1973.
8. No minimum denomination. Until July 1, 1979, the minimum denomination
was $1,000 except for deposits representing funds contributed to an individual
retirement account ( I R A ) or a Keogh ( H . R . 10) plan established pursuant to the
Internal Revenue Code. The $1,000 minimum requirement was removed for such
accounts in December 1975 and November 1976 respectively.
SVi
5 Vi
1/1/80
6
6 Vi
3
6 /4
71A
73/4
8
(')
O
11/1/73
12/23/74
6/1/78
( )3
5 /4
6
6
(')
1/21/70
1/21/70
1/21/70
IVi
i1/1/73
53/4
73/4
73/4
12/23/74
7/6/77
9. Between July 1, 1973, and Oct. 31, 1973, certificates maturing in 4 years or
more with minimum denominations of $1,000 had no ceiling; however, the amount
of such certificates that an institution could issue was limited to 5 percent of its
total time and savings deposits. Sales in excess of that amount, as well as certificates
of less than $1,000, were limited to the 6'/i percent ceiling on time deposits maturing
in 2Vi years or more. Effective Nov. 1, 1973, ceilings were reimposed on certificates
maturing in 4 years or more with minimum denomination of $1,000. There is no
limitation on the amount of these certificates that banks can issue.
10. Accounts subject to fixed-rate ceilings. See footnote 8 for minimum denomination requirements.
11. Effective Jan. 1, 1980, commercial banks are permitted to pay the same rate
as thrifts on I R A and Keogh accounts and accounts of governmental units when
such deposits are placed in 2V5-year-or-more variable-ceiling certificates or in 26week money market certificates regardless of the level of the Treasury bill rate.
NOTE. Before Mar. 31, 1980, the maximum rates that could be paid by federally
insured commercial banks, mutual savings banks, and savings and loan associations
were established by the Board of Governors of the Federal Reserve System, the
Board of Directors of the Federal Deposit Insurance Corporation, and the Federal
Home Loan Bank Board under the provisions of 12 C F R 217, 329, and 526 respectively. Title II of the Depository Institutions Deregulation and Monetary Control Act of 1980 (P.L. 96-221) transferred the authority of the agencies to establish
maximum rates of interest payable on deposits to the Depository Institutions Deregulation Committee. The maximum rates on time deposits in denominations of
$100,000 or more with maturities of 30-89 days were suspended in June 1970; the
maximum rates for such deposits maturing in 90 days or more were suspended in
May 1973. For information regarding previous interest rate ceilings on all types of
accounts, see earlier issues of the FEDERAL RESERVE BULLETIN, the Federal Home
Loan Bank Board Journal, and the Annual Report of the Federal Deposit Insurance
Corporation.
For deposits subject to variable ceiling rates and deposits not subject to interest rate ceilings see page
6
5 3 /4
5 3 /4
7/1/73
6Vi
(<•)
7/1/73
7/1/73
1/21/70
1/21/70
1/21/70
5
A10.
A10
1.16
DomesticNonfinancialStatistics • December 1982
Continued
TIME DEPOSITS SUBJECT TO VARIABLE CEILING RATES
7- to 31-day time deposits. Effective Sept. 1, 1982, depository institutions are
authorized to issue n o n n e g o t i a b l e time deposits of $20,000 or m o r e with a maturity
or required notice period of 7 to 31 days. T h e maximum rate of interest payable
by thrift institutions is the rate established a n d a n n o u n c e d (auction average on a
discount basis) for U.S. Treasury bills with maturities of 91 days at the auction
held immediately before the date of deposit or renewal ("bill r a t e " ) . Commercial
banks may pay the bill rate minus 25 basis points. T h e interest rate ceiling is
suspended w h e n the bill rate is 9 percent or below for the four most recent auctions
held b e f o r e the date of deposit or renewal. T h e interest rate ceiling was suspended
for the entire m o n t h of N o v e m b e r 1982.
91-day time deposits. Effective M a y 1, 1982, depository institutions were authorized to offer time deposits that have a minimum denomination of $7,500 and
a maturity of 91 days. T h e ceiling r a t e of interest o n these deposits is indexed t o
the discount rate (auction average) on most recently issued 91-day Treasury bills
for thrift institutions and the discount rate minimum 25 basis points for commercial
banks. T h e rate differential ends 1 year f r o m the effective date of these instruments
and is suspended at any time the Treasury bill discount rate is 9 percent or below
for four consecutive auctions. T h e m a x i m u m allowable rates in N o v e m b e r 1982 (in
percent) for commercial b a n k s and thrifts were as follows: N o v . 2, 7.831; Nov. 9,
7.964; Nov. 16, 8.446; Nov. 23, 7.944.
Six-month money market time deposits. Effective J u n e 1, 1978, commercial b a n k s
and thrift institutions were authorized to o f f e r time deposits with a maturity of
exactly 26 weeks and a m i n i m u m d e n o m i n a t i o n r e q u i r e m e n t of $10,000. T h e ceiling
rate of interest on these deposits is indexed t o the discount rate (auction average)
on most recently issued 26-week U . S . T r e a s u r y bills. Interest on these certificates
may not be c o m p o u n d e d . Effective for all 6 - m o n t h money m a r k e t certificates issued
beginning Nov. 1, 1981, depository institutions may pay rates of interest on these
deposits indexed to the higher of (1) the rate for 26-week Treasury bills established
immediately b e f o r e the date of deposit (bill rate) or (2) the average of the four
rates for 26-week Treasury bills established for the 4 w e e k s immediately b e f o r e
the date of deposit (4-week average bill rate). Ceilings are d e t e r m i n e d as follows:
Bill rate or 4-week
average bill rate
7.50 percent or below
A b o v e 7.50 percent
7.25 percent or below
Above 7.25 percent, but below 8.50
percent
8.50 percent or above, but below
8.75 percent
8.75 percent or above
Commercial
bank
ceiling
7.75 percent
of 1 percentage point plus the higher of the
bill rate or 4-week average bill rate
Thrift ceiling
7.75 percent
Vi of 1 percentage point plus the higher of the
bill rate or 4-week average bill rate
9 percent
T h e m a x i m u m rates in N o v e m b e r 1982 for commercial banks based on the bill rate
were as follows: Nov. 2, 8.481; Nov. 9, 8.647; Nov. 16, 8.789; Nov. 23, 8.359; and
based on the 4-week average bill rate were as follows: Nov. 2, 8.299; Nov. 9. 8.466;
Nov. 16, 8.660; Nov. 23, 8.569. T h e maximum allowable rates in N o v e m b e r 1982
for thrifts based on the bill rate were as follows: Nov. 2, 8.731; Nov. 9, 8.897;
Nov. 16, 9.000; Nov. 23, 8.609; and based on the 4-week average bill rate were as
follows: Nov. 2 , 8.549; N o v . 9, 8.716; Nov. 16, 8.910; Nov. 23, 8.819.
12-month all savers certificates. Effective Oct. 1, 1981, depository institutions are
authorized to issue all savers certificates (ASCs) with a 1-year maturity and an
annual investment yield equal to 70 percent of the average investment yield for
52-week U . S . Treasury bills as determined by the auction of 52-week Treasury bills
held immediately b e f o r e the calendar week in which the certificate is issued. A
maximum lifetime exclusion of $1,000 ($2,000 on a joint return) f r o m gross income
is generally authorized for interest income f r o m ASCs. T h e annual investment yield
for ASCs issued in N o v e m b e r 1982 (in percent) was as follows: Nov. 28, 6.40.
2l/2-year to less than 3>/2-year time deposits. Effective A u g . 1, 1981, commercial
banks are authorized t o pay interest on any variable ceiling nonnegotiable time
deposit with an original maturity of 2V5 years to less than 4 years at a rate not to
exceed lA of 1 percent below the average 2'/5-year yield for U.S. Treasury securities
as determined and a n n o u n c e d by the Treasury D e p a r t m e n t immediately before
the date of deposit. Effective May 1, 1982, the maximum maturity for this category
of deposits was reduced to less than 3V5 years. Thrift institutions may pay interest
on these certificates at a rate n o t t o exceed the average 2Vi-year yield f o r Treasury
securities as determined and announced by the Treasury D e p a r t m e n t immediately
before the date of deposit. If the announced average 2'/2-year yield for Treasury
securities is less than 9.50 percent, commercial banks may pay 9.25 percent and
thrift institutions 9.50 percent for these deposits. These deposits have no required
minimum d e n o m i n a t i o n , and interest may be c o m p o u n d e d on them. T h e ceiling
rates of interest at which they may b e offered vary biweekly. T h e maximum allowable rates in N o v e m b e r 1982 (in percent) for commercial banks were as follows:
Nov. 9, 9.60; Nov. 23, 9.65; and for thrifts: Nov. 9, 9.85; Nov. 23. 9.90.
Between Jan. 1, 1980, and A u g . 1, 1981, commercial banks and thrift institutions
were authorized to offer variable ceiling nonnegotiable time deposits with no required minimum denomination and with maturities of 2l/l years or more. Effective
Jan. 1, 1980, the m a x i m u m rate for commercial banks was 3/4 percentage point
below the average yield on 2'/5-year U.S. Treasury securities; the ceiling rate for
thrift institutions was '/4 percentage point higher than that for commercial banks.
Effective Mar. 1, 1980, a temporary ceiling of ll 3 /4 percent was placed on these
accounts at commercial banks and 12 percent on these accounts at savings and
loans. Effective June 2, 1980, the ceiling rates for these deposits at commercial
banks and savings and loans w e r e increased Vi percentage point. T h e t e m p o r a r y
ceiling was retained, and a minimum ceiling of 9.25 percent for commercial banks
and 9.50 percent for thrift institutions was established.
l
A of 1 percentage point plus the higher of the
bill rate or 4-week average bill rate
TIME DEPOSITS N O T SUBJECT T O INTEREST R A T E CEILINGS, BY M A T U R I T Y
IRAs and Keogh (H.R.10) plans (18 months or more). Effective D e c . 1. 1981,
depository institutions are authorized to offer time deposits not subject to interest
rate ceilings w h e n the f u n d s are deposited t o the credit o f , or in which the entire
beneficial interest is held by, an individual pursuant to an I R A a g r e e m e n t or Keogh
( H . R . 1 0 ) plan. Such time deposits must have a minimum maturity of 18 months,
and additions may be m a d e to the time deposit at any time b e f o r e its maturity
without extending the maturity of all or a portion of the balance of the account.
Time deposits of3'/2 years or more. Effective May 1, 1982, depository institutions
are authorized to offer negotiable or nonnegotiable time deposits with a m i n i m u m
original maturity of 3Vi years or m o r e that are not subject to interest rate ceilings.
Such time deposits have no minimum denomination, but must be m a d e available
in a $500 denomination. Additional deposits may be m a d e to the account during
the first year without extending its maturity.
Policy Instruments
1.17
All
F E D E R A L R E S E R V E OPEN M A R K E T T R A N S A C T I O N S
Millions of dollars
1982
Type of transaction
1979
1980
1981
May
Apr.
Aug.
July
June
Oct.
Sept.
U . S . G O V E R N M E N T SECURITIES
Outright transactions (excluding matched
transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
15,998
6,855
0
2,900
7,668
7,331
0
3,389
13,899
6,746
0
1,816
4,149
0
0
0
595
519
0
400
1,559
0
200
0
1,905
1,175
-200
200
1,721
651
0
600
425
674
0
400
774
0
0
0
Others within 1 year1
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
3,203
0
17,339
-11,308
2,600
912
0
12,427
-18,251
0
317
23
13,794
-12,869
0
132
0
333
-525
0
0
0
1,498
-2,541
0
0
0
988
-1,249
0
71
0
382
0
0
0
0
4,938
-3,914
0
0
0
733
-650
0
0
0
623
0
0
10
11
12
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
2,148
0
-12,693
7,508
2,138
0
-8,909
13,412
1,702
0
-10,299
10,117
570
0
-333
525
0
0
-1,000
1,600
0
0
-988
1,049
691
0
-382
200
0
0
-4,938
3,078
0
0
0
0
0
0
-623
0
14
1.*)
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
523
0
-4,646
2,181
703
0
-3,092
2,970
393
0
-3,495
1,500
81
0
0
0
0
0
-498
941
0
0
0
0
113
0
0
0
0
0
601
837
0
0
-733
650
0
0
0
0
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
454
0
0
1,619
811
0
-426
1,869
379
0
0
1,253
52
0
0
0
0
0
0
0
0
0
0
0
123
0
0
0
0
0
-601
0
0
0
0
0
0
0
0
0
22
23
24
All maturities1
Gross purchases
Gross sales
Redemptions
22,325
6,855
5,500
12,232
7,331
3,389
16,690
6,769
1,816
4,984
0
0
595
519
400
1,559
0
0
2,903
1,175
200
1,721
651
600
425
674
400
774
0
0
25
26
Matched transactions
Gross sales
Gross purchases
627,350
624,192
674,000
675,496
589,312
589,647
44,748
44,759
36,047
36,790
41,509
37,548
54,646
58,753
39,403
37,962
51,983
51,554
45,655
46,370
27
28
Repurchase agreements
Gross purchases
Gross sales
107,051
106,968
113,902
113,040
79,920
78,733
18,396
14,724
10,155
15,424
5,332
5,332
18,267
18,267
3,755
2,567
9,649
7,035
5,618
9,420
6,896
3,869
9,626
8,667
-4,850
-2,402
5,636
217
1,535
-2,313
853
399
134
668
0
145
494
0
108
0
0
5
0
0
1
0
0
6
0
0
1
0
0
46
0
0
5
0
0
6
37,321
36,960
28,895
28,863
13,320
13,576
2,033
1,119
1,305
2,301
831
831
4,389
4,389
1,095
866
1,997
1,225
1,776
2,778
681
555
130
909
-997
-6
-1
183
767
-1,008
116
73
-582
280
-768
0
0
565
248
-813
7,693
4,497
9,175
9,856
-6,615
-2,408
5,634
966
2,550
-4,134
29 Net change in U.S. government securities
F E D E R A L A G E N C Y OBLIGATIONS
30
31
32
Outright transactions
Gross purchases
Gross sales
Redemptions
33
34
Repurchase agreements
Gross purchases
Gross sales
35 Net change in federal agency obligations
B A N K E R S ACCEPTANCES
36 Repurchase agreements, net
37 Total net change in System Open Market
Account
1. Both gross purchases and redemptions include special certificates created
when the Treasury borrows directly from the Federal Reserve, as follows (millions
of dollars): March 1979, 2,600.
NOTE. Sales, redemptions, and negative figures reduce holdings of the System
Open Market Account; all other figures increase such holdings. Details may not
add to totals because of rounding.
A12
1.18
DomesticNonfinancialStatistics • December 1982
FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements
Millions of dollars
Account
Nov. 3
Oct. 2 7
Wednesday
End of month
1982
1982
Nov. 10
Nov. 1 7
Nov. 2 4
Sept.
Oct.
Nov.
Consolidated condition statement
ASSETS
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4
To depository institutions
5
Other
Acceptances
6
Held under repurchase agreements
Federal agency obligations
7
Bought outright
8
Held under repurchase agreements
U.S. government securities
Bought outright
9
Bills
10
Notes
11
Bonds
12
Total 1
13
Held under repurchase agreements
14 Total U.S. government securities
0
0
0
0
0
813
0
0
8,943
0
8,943
0
8,943
0
8,943
0
8,943
0
8,949
1,001
8,943
0
8,943
0
52,322
62,018
18,264
132,604
0
132,604
51,823
62,018
18,264
132,105
0
132,105
52,775
62,018
18,264
133,057
0
133,057
53,579
61,858
18,424
133,861
0
133,861
53,448
62,626
18,556
134,630
0
134,630
50,309
62,018
18,264
130,591
3,802
134,393
51,798
62,018
18,264
132,080
0
132,080
56,494
62,626
18,556
137,676
0
137,676
15 Total loans and securities
142,369
141,806
145,208
143,229
144,377
146,279
141,461
146,993
8,509
543
11,540
545
8,668
545
10,972
546
9,830
546
6,779
541
8,352
544
11,893
546
5,345
4,218
5,317
4,474
5,341
4,229
5,356
2,702
5,360
2,978
5,116
4,016
5,325
4,262
5,649
3,490
176,812
179,506
180,010
178,818
179,102
178,547
175,778
184,573
136,313
137,281
138,799
138,818
139,326
135,197
136.048
139,989
25,777
3,169
220
464
26,085
3,154
300
464
26,125
3,166
290
553
23,127
3,836
214
546
24,153
3,394
261
594
20,318
10,975
396
394
24,678
2.309
327
449
26,533
2,247
387
716
29,630
30,003
30,134
27,723
28,402
32,083
27,763
29,883
6,216
1,671
7,604
1,648
6,453
1,625
7,648
1,632
6,799
1,581
6,220
2,027
7.184
1,669
9,492
1,799
173,830
176,536
177,011
175,821
176,108
175,527
172,664
181,163
1,350
1,278
354
1,351
1,278
341
1,354
1,278
367
1,354
1,278
365
1,354
1,278
362
1,341
1,278
401
1,350
1,278
486
1,354
1,278
778
176,812
179,506
180,010
178,818
179,102
178,547
175,778
184,573
100,203
101,394
102,420
103,372
103,541
98,192
101,831
101,703
16 Cash items in process of collection
17 Bank premises
Other assets
18
Denominated in foreign currencies 2
19
All other 3
20 Total assets
11,148
4,218
462
11,148
4.218
458
11,148
4,418
453
11,148
4,418
447
11,148
4,418
445
11,148
4,218
450
11,148
4,218
468
11,148
4,418
436
822
0
758
0
3,208
0
425
0
804
0
1,123
0
438
0
374
0
LIABILITIES
21 Federal Reserve notes
Deposits
22
Depository institutions
23
U.S. Treasury—General account
24
Foreign—Official accounts
25
Other
26 Total deposits
27 Deferred availability cash items
28 Other liabilities and accrued dividends 4
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
33 Total liabilities and capital accounts
34 MEMO: Marketable U.S. government securities held in
custody for foreign and international account
Federal Reserve note statement
35 Federal Reserve notes outstanding (issued to bank) . . . .
36
LESS: Held by bank 5
37
Federal Reserve notes, net
Collateral for Federal Reserve notes
38
Gold certificate account
39
Special drawing rights certificate account
40
Other eligible assets
41
U.S. government and agency securities
157,281
20,968
136,313
157,578
20,297
137,281
157,707
18,908
138,799
158,275
19,457
138,818
159,023
19,697
139,326
156,412
21,215
135,197
157,348
21,300
136,048
159,408
19,419
139,989
11,148
4,218
0
120,947
11,148
4,218
66
121,849
11.148
4,418
78
123,155
11,148
4,418
51
123,201
11,148
4,418
107
123,653
11.148
4,218
0
119,831
11,148
4.218
14
120.668
11,148
4,418
0
124,423
42 Total collateral
136,313
137,281
138,799
138,818
139,326
135,197
136,048
139,989
1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Includes U.S. government securities held under repurchase agreement against
receipt of foreign currencies and foreign currencies warehoused for the U.S. Treasury. Assets shown in this line are revalued monthly at market exchange rates.
3. Includes special investment account at Chicago of Treasury bills maturing
within 90 days.
4. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
5. Beginning September 1980, Federal Reserve notes held by the Reserve Bank
are exempt from the collateral requirement.
Reserve Banks; Banking Aggregates
1.19
FEDERAL RESERVE BANKS
Millions of dollars
A13
Maturity Distribution of Loan and Security Holdings
Wednesday
E n d of month
1982
1982
Type and maturity groupings
Nov. 3
Oct. 27
Nov. 10
Nov. 24
Nov. 17
Nov. 30
Oct. 31
Sept. 30
1 Loans—Total
2
Within 15 days
3
16 days to 90 days
4
91 days to 1 year
822
788
34
0
758
729
29
0
3,208
3,173
35
0
425
416
9
0
804
785
19
0
1,123
1,076
47
0
438
398
40
0
374
356
18
0
5 Acceptances—Total
6
Within 15 days
16 days to 90 days
91 days to 1 year
8
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
813
813
0
0
0
0
0
0
0
0
0
0
9 U.S. government securities—Total
10
Within 15 days 1
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
132,604
2,652
28,224
37,288
35,891
12,267
16,282
132,105
5,238
25,970
36,602
35,746
12,267
16,282
133,057
3,362
27,568
37,832
35,746
12,267
16,282
133,861
5,682
26,404
38,595
34,837
11,901
16,442
134,630
5,830
26,116
38,691
35,322
12,095
16,576
134,393
5,743
24,429
39,781
35,891
12,267
16,282
132,080
2,652
28,465
36,523
35,891
12,267
16,282
137,676
5,515
30,242
38,185
35,065
12,095
16,574
16 Federal agency obligations—Total
17
Within 15 days 1
18
16 days to 90 days
19
91 days to 1 year
20
Over 1 year to 5 years
21
Over 5 years to 10 years
22
Over 10 years
8,943
83
490
1,966
4,962
924
518
8,943
0
590
1,949
4,962
924
518
8,943
0
590
1,985
4,926
924
518
8,943
128
462
1,985
4,926
924
518
8,943
128
462
1,985
4,926
924
518
9,950
1,208
407
1,863
5,087
882
503
8,943
83
490
1,966
4,962
924
518
8,943
161
528
1,988
4,804
944
518
7
1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements.
1.20
A G G R E G A T E R E S E R V E S OF D E P O S I T O R Y INSTITUTIONS A N D M O N E T A R Y B A S E 1
Billions of dollars, averages of daily figures
1982
Item
1978
1979
1980
1981
Dec.
Dec.
Dec.
Dec.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Seasonally adjusted
A D J U S T E D FOR
C H A N G E S IN R E S E R V E R E Q U I R E M E N T S 2
1 Total reserves 3
32.82
34.26
36.46
37.99
38.43
38.50
38.58
38.52
38.80
39.57
39.88
40.48
2 Nonborrowed reserves
3 Required reserves
4 Monetary base 4
31.95
32.59
132.2
32.79
33.93
142.5
34.77
35.95
155.0
37.35
37.67
162.7
36.87
38.16
166.5
37.39
38.15
167.7
37.37
38.27
168.8
37.83
38.21
169.2
38.29
38.49
170.1
38.63
39.18
171.9
39.40
39.47
172.9
39.85
40.06
173.8
Not seasonally adjusted
5 Total reserves 3
33.37
34.83
37.11
38.66
38.33
38.19
38.07
38.43
38.51
39.35
40.00
40.70
6 Nonborrowed reserves
7 Required reserves
8 Monetary base 4
32.50
33.13
134.8
33.35
34.50
145.4
35.42
36.59
158.0
38.03
38.34
165.8
36.76
38.06
165.6
37.07
37.83
167.1
36.86
37.76
168.2
37.74
38.12
170.0
38.00
38.20
170.4
38.42
38.97
171.4
39.52
39.59
173.0
40.08
40.28
175.2
N O T A D J U S T E D FOR
C H A N G E S IN R E S E R V E R E Q U I R E M E N T S 5
9 Total reserves 3
10 Nonborrowed reserves
11 Required reserves
12 Monetary base 4
For notes see bottom of next page
41.68
43.91
40.66
41.92
39.56
39.55
39.57
39.97
40.18
39.96
40.59
41.22
40.81
41.45
144.6
42.43
43.58
156.2
38.97
40.15
162.4
41.29
41.60
169.7
37.99
39.28
167.6
38.43
39.19
169.2
38.36
39.26
170.4
39.28
39.65
172.3
39.66
39.87
172.8
39.03
39.58
172.3
40.11
40.18
173.8
40.60
40.80
176.1
A14
1.21
DomesticNonfinancialStatistics • December 1982
M O N E Y STOCK M E A S U R E S A N D COMPONENTS
Billions of dollars, averages of daily figures
1982
1978
Dec.
Item
1979
Dec.
1980
Dec.
1981
Dec.
June
July
Aug.
Sept.
Oct.
455.2
1,946.3
2,355.9'
2,858.9
460.5
1,954.4
2,363.5'
n.a.
468.3
1,967.9
2,381.7
n.a.
129.5
4.4
231.1
90.2
342.0'
930.6
339.6
130.5
4.4
232.6
93.0
342.5
932.6
339.3'
131.2
4.4
236.1
96.5
352.6
924.0
342.9
Seasonally adjusted
MEASURES
1
2
3
4
1
Ml
M2
M3
L2
363.2
1,403.9
1,629.0
1,938.9
389.0
1,518.9
1,779.4
2,153.9
414.5
1,656.2
1,963.1
2,370.4
440.9
1,822.7
2,188.1
2,642.8
97.4
3.5
253.9
8.4
479.9
533.9
194.6
106.1
3.7
262.2
16.9
421.7
652.6
221.8
116.2
4.2
267.2
26.9
398.9
751.7
257.9
123.1
4.3
236.4
77.0
343.6
854.7
300.3
451.4
1,907.9
2,296.0'
2,799.2'
451.3
1,923.4
2,320.2'
2,832.3'
128.4
4.5
231.0
87.5
349.9
900.9
328.3
128.8
4.4
230.6
87.4
344.0
919.7
335.8
SELECTED COMPONENTS
5
6
7
8
9
10
11
Currency
Traveler's checks 3
Demand deposits
Other checkable deposits 4
Savings deposits 5
Small-denomination time deposits 6
Large-denomination time deposits 7
Not seasonally adjusted
MEASURES1
12
13
14
15
Ml
M2
M3
L2
372.5
1,408.5
1,637.5
1,946.6
398.8
1,524.7
1,789.2
2,162.8
424.6
1,662.5
1,973.9
2,380.2
451.2
1,829.4
2,199.9
2,653.8
450.5
1,906.4
2,290.0
2,794.4'
454.0
1,924.8
2,314.1
2,820.8'
454.0
1,938.9'
2,342.5'
2,844.1
460.5
1,950.7'
2,356.1'
n.a.
470.1
1971.8
2,383.0
n.a.
99.4
3.3
261.5
8.4
24.1
478.0
531.1
108.2
3.5
270.1
17.0
26.3
420.5
649.7
118.3
3.9
275.1
27.2
35.0
398.0
748.9
125.4
4.1
243.3
78.4
38.1
343.0
851.7
128.3
4.7
230.4
87.2'
43.0'
347.9
902.3
129.8
4.9
231.5
87.9'
43.4
348.3
914.1
130.0
4.9
229.3
89.8
44.5
346.1'
920.2
130.2
4.7
232.4
93.2
43.3'
347.4
923.9
131.2
4.5
237.1
97.3
46.3
357.0
921.7
7.1
3.1
198.6
34.4
9.3
226.0
61.9
13.9
262.3
151.2
33.7
305.4
168.6
33.7
323.9
171.3
36.7
328.3
180.0
43.1
333.7
181.9
43.9
335.7'
183.4
44.8
340.3
SELECTED COMPONENTS
16
17
18
19
20
21
22
Currency
Traveler's checks 3
Demand deposits
Other checkable deposits 4
Overnight RPs and Eurodollars 8
Savings deposits 5
Small-denomination time deposits 6
Money market mutual funds
23
General purpose and broker/dealer
24
Institution only
25 Large-denomination time deposits 7
1. Composition of the money stock measures is as follows:
M l : Averages of daily figures for (1) currency outside the Treasury, Federal
Reserve Banks, and the vaults of commercial banks; (2) traveler's checks of nonbank issuers; (3) demand deposits at all commercial banks other than those due
to domestic banks, the U . S . government, and foreign banks and official institutions
less cash items in the process of collection and Federal Reserve float; and (4)
negotiable order of withdrawal ( N O W ) and automatic transfer service (ATS) accounts at banks and thrift institutions, credit union share draft ( C U S D ) accounts,
and demand deposits at mutual savings banks.
M2: M l plus savings and small-denomination time deposits at all depository
institutions, overnight repurchase agreements at commercial banks, overnight Eurodollars held by U.S. residents other than banks at Caribbean branches of member
banks, and balances of money market mutual funds (general purpose and broker/
dealer).
M3: M2 plus large-denomination time deposits at all depository institutions, term
RPs at commercial banks and savings ana loan associations, and balances of institution-only money market mutual funds.
2. L: M3 plus other liquid assets such as term Eurodollars held by U . S . residents
other than banks, bankers acceptances, commercial paper, Treasury bills and other
liquid Treasury securities, and U.S. savings bonds.
3. Outstanding amount of U.S. dollar-denominated traveler's checks of nonbank
issuers.
4. Includes A T S and N O W balances at all institutions, credit union share draft
balances, and demand deposits at mutual savings banks.
5. Excludes N O W and ATS accounts at commercial banks and thrift institutions
and C U S D s at credit unions.
6. Issued in amounts of less than $100,000 and includes retail RPs.
7. Issued in amounts of $100,000 or more and are net of the holdings of domestic
banks, thrift institutions, the U.S. government, money market mutual funds, and
foreign banks and official institutions.
8. Overnight (and continuing contract) RPs are those issued by commercial
banks to other than depository institutions and money market mutual funds (general
purpose and broker/aealer), and overnight Eurodollars are those issued oy Caribbean branches of member banks to U.S. residents other than depository institutions and money market mutual funds (general purpose and broker/dealer).
NOTE. Latest monthly and weekly figures are available from the Board's H . 6
(508) release. Back data are available from the Banking Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D . C . 20551.
N O T E S T O T A B L E 1.20
1. Reserve aggregates include required reserves of member banks and Edge Act
corporations ana other depository institutions. Discontinuities associated with the
implementation of the Monetary Control Act, the inclusion of Edge Act corporation
reserves, and other changes in Regulation D have been removed. Beginning with
the week ended December 23,1981, reserve aggregates have been reduced by shifts
of reservable liabilities to international banking facilities (IBFs). O n the basis of
reports of liabilities transferred to IBFs by U . S . commercial banks and U . S . agencies and branches of foreign banks, it is estimated that required reserves were
lowered on average $10 million to $20 million in December 1981 and $40 million
to $70 million in January 1982.
2. Reserve balances with Federal Reserve Banks (which exclude required clearing balances) plus vault cash at institutions with required reserve balances plus
vault cash equal to required reserves at other institutions.
3. Includes reserve balances and required clearing balances at Federal Reserve
Banks in the current week plus vault cash held two weeks earlier used to satisfy
reserve requirements at all depository institutions plus currency outside the U.S.
Treasury, Federal Reserve Banks, the vaults of depository institutions, and surplus
vault cash at depository institutions.
4. Reserves of depository institutions series reflect actual reserve requirement
percentages with no adjustments to eliminate the effect of changes in Regulation
D , including changes associated with the implementation of the Monetary Control
Act. Includes required reserves of m e m b e r banks and Edge Act corporations and
beginning November 13,1980, other depository institutions. U n d e r the transitional
phase-in program of the Monetary Control Act of 1980, the net changes in required
reserves of depository institutions have been as follows: Effective Nov. 13, 1980,
a reduction of $2.9 billion; Feb. 12, 1981, an increase of $245 million: Mar. 12,
1981, an increase of $75 million; May 14, 1981, an increase of $245 million; Aug.
13, 1981, an increase of $230 million; Sept. 3, 1981, a reduction of $1.1 billion;
Nov. 12,1981, an increase of $210 million; Jan. 14,1982, a reduction of $60 million;
Feb. 11,1982 an increase of $170 million; Mar. 4, 1982, an estimated reduction of
$2.0 billion; May 13, 1982, an estimated increase of $150 million; Aug. 12, 1982
an estimated increase of $140 million; and Sept. 2, 1982, an estimated reduction
of $1.2 billion. Beginning with the week ended December 23, 1981, reserve aggregates have been reduced by shifts of reservable liabilities to IBFs. O n the basis
of reports of liabilities transferred to IBFs by U.S. commercial banks and U.S.
agencies and branches of foreign banks, it is estimated that required reserves were
lowered on average by $60 million to $90 million in December 1981 and $180
million to $230 million in January 1982, mostly reflecting a reduction in reservable
Eurocurrency transactions.
NOTE. Latest monthly and weekly figures are available from the Board's H.3(502)
statistical release. Back data and estimates of the impact on required reserves and
changes in reserve requirements are available from the Banking Section, Division
of Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D . C . 20551.
Commercial Banks
1.22
A15
B A N K DEBITS A N D DEPOSIT T U R N O V E R
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
1982
Bank group, or type of customer
19791
19801
19811
May
June
July
Aug.
Sept.
Oct.
Seasonally adjusted
D E B I T S TO
1
2
3
4
5
D e m a n d deposits 2
All insured banks
M a j o r New York City banks
Other banks
A T S - N O W accounts 3
Savings deposits 4
6
7
8
9
10
D e m a n d deposits 2
All insured banks
M a j o r New York City banks
Other banks
A T S - N O W accounts 3
Savings deposits 4
49,903.0
18,481.7
31,421.3
84.4
547.9
62,757.8
25,156.1
37,601.7
159.3
670.0
80,858.7
33,891.9
46,966.9
743.4
672.7
88,573.8
37,248.2
51,325.7
900.5
712.2
87,602.3
35,729.5
51,872.8
977.6
698.9
90,280.7
36,880.8
53,399.9
1,049.9
773.8
95,177.9
39,525.3
55,652.6
1,146.2
770.7
94,480.0
37,986.3
56,493.7
1,165.4
707.8
97,097.0
42,077.9
55,019.1
1,109.4
637.0
162.8
634.2
113.3
7.8
2.7
198.7
803.7
132.2
9.7
3.6
285.8
1,105.1
186.2
14.0
4.1
319.3
1,287.8
206.6
13.1
4.5
318.7
1,295.9
209.8
14.2
4.4
325.0
1,265.7
214.8
15.3
5.0
341.6
1,424.2
221.8
16.2
5.0
341.0
1,282.5
228.3
15.9
4.6
343.0
1,298.7
219.5
14.7
4.0
DEPOSIT TURNOVER
Not seasonally adjusted
D E B I T S TO
11
12
13
14
15
D e m a n d deposits 2
All insured banks
M a j o r New York City banks
Other banks
A T S - N O W accounts 3
Savings deposits 4
16
17
18
19
20
D e m a n d deposits 2
All insured banks
M a j o r New York City banks
Other banks
A T S - N O W accounts 3
Savings deposits 4
49,777.3
18,487.8
31,289.4
83.3
548.1
63,124.4
25,243.1
37,881.3
158.0
669.8
81,197.9
34,032.0
47,165.9
737.6
672.9
82,913.9
34,585.7
48,328.2
891.7
680.8
92,867.2
38,286.7
54,580.6
1,046.0
694.4
91,318.9
37,502.5
53,816.4
1,021.0
778.2
94,968.5
39,126.7
55,841.8
1,020.5
763.7
95,557.1
39,634.0
55,923.1
1,097.3
695.2
93,543.3
39,657.6
53,885.7
1,098.0
672.7
163.3
644.1
113.4
7.8
2.7
202.3
814.8
134.8
9.7
3.6
286.1
1,114.2
186.2
14.0
4.1
304.5
1,218.1
198.1
13.2
4.3
339.6
1,361.3
222.5
15.2
4.4
328.2
1,305.8
215.7
14.8
4.9
346.9
1,472.8
225.9
14.4
4.9
345.3
1,362.5
225.8
15.0
4.4
327.8
1,220.8
213.1
14.5
4.2
DEPOSIT TURNOVER
1. Annual averages of monthly figures.
2. Represents accounts of individuals, partnerships, and corporations and of
states and political subdivisions.
3. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts
authorized for automatic transfer to demand deposits (ATS). ATS data availability
starts with December 1978.
4. Excludes A T S and N O W accounts as well as special club accounts, such as
Christmas and vacation clubs.
NOTE. Historical data for demand deposits are available back to 1970 estimated
in part from the debits series for 233 SMSA's that were available through June
1977. Historical data for A T S - N O W and savings deposits are available back to
July 1977. Back data are available on request f r o m the Banking Section, Division
of Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D . C . 20551.
A16
1.23
Domestic Financial Statistics • December 1982
L O A N S A N D SECURITIES
All Commercial Banks 1
Billions of dollars; averages of Wednesday figures
1981
Cate
1982
1981
1982
rv
Dec. 2
June 3
July
Aug.
Sept. 4
Oct.
Dec. 2
June 3
Seasonally adjusted
1
Total loans and securities 5
2
3
4
5
U.S. Treasury securities
Other securities
Total loans and leases 5
Commercial and industrial
loans
Real estate loans
Loans to individuals
Security loans
Loans to nonbank financial
institutions
Agricultural loans
Lease financing r e c e i v a b l e s . . . .
All other loans
6
7
8
9
10
11
12
July
Aug.
Sept. 4
Oct.
Not seasonally adjusted
1,316.3
1,368.8
1,376.1
1,383.1
1,389.4
1,397.7
1,326.1
1,366.3
1,370.4
1,377.7
1,391.0
1,403.0
111.0
231.4
973.9
115.8
235.9
1,017.1
116.5
235.9
1.023.7
117.8
237.1
1,028.3
118.2
237.6
1,033.5
122.4
237.3
1,038.0
111.4
232.8
981.8
116.1
235.6
1,014.6
115.6
234.7
1,020.1
116.4
236.4
1,024.9
117.8
237.7
1,035.5
121.4
237.6
1,044.0
358.0
285.7
185.1
21.9
383.4
297.3
188.2
19.5
386.7
297.5
189.2
21.0
387.9
298.5
189.5
21.4
392.5
299.5
189.6
22.6
394.8
300.4
190.0
24.2
360.1
286.8
186.4
22.7
382.7
295.8
187.4
20.5
385.5
296.6
188.3
20.5
385.5
298.2
189.7
22.0
392.1
300.1
190.9
22.3
395.5
301.6
191.5
23.9
30.2
33.0
12.7
47.2
33.6
35.3
13.1
46.7
33.9
35.7
13.2
46.4
33.2
36.0
13.1
48.7
32.6
36.3
13.1
47.4
32.4
36.3
13.1
46.8
31.2
33.0
12.7
49.2
33.1
35.5
13.1
46.4
33.3
36.1
13.2
46.7
33.1
36.5
13.1
46.8
32.8
36.8
13.1
47.5
32.7
36.8
13.1
49.0
1,319.1
1,371.7
1,378.9
1,386.0
1,392.2
1,400.5
1,328.9
1,369.3
1,373.2
1,380.5
1,393.8
1,405.8
976.7
2.8
1,020.1
3.0
1,026.5
2.8
1,031.1
2.8
1,036.4
2.8
1,040.9
2.8
984.7
2.8
1,017.6
3.0
1,023.0
2.8
1,027.7
2.8
1,038.4
2.8
1,046.8
2.8
360.2
385.8
.389.0
390.2
394.7
397.0
362.3
385.1
387.8
387.8
394.4
397.7
2.2
8.9
2.4
9.1
2.3
8.7
2.3
9.1
2.3
9.3
2.2
9.4
2.2
9.8
2.4
9.2
2.3
8.6
2.3
8.8
2.3
9.4
2.2
9.3
349.1
334.9
14.2
19.0
374.3
360.2
14.2
14.7
378.1
364.7
13.3
14.8
378.8
365.8
13.0
14.6
383.1
369.8
13.3
13.8
385.4
372.6
12.7
13.9
350.3
334.3
16.1
20.0
373.5
360.6
13.0
14.2
376.9
363.9
13.0
14.5
376.7
364.0
12.8
14.1
382.7
369.6
13.1
14.2
386.2
373.3
12.8
14.2
MEMO:
13
Total loans and securities plus
loans sold 5 ' 6
14
15
16
Total loans plus loans sold 5 ' 6 . . . .
Total loans sold to affiliates 5 ' 6 . . .
Commercial and industrial loans
plus loans sold 6
Commercial and industrial
loans sold 6
Acceptances held
Other commercial and industrial loans
To U.S. addressees 7
To non-U. S. addressees
Loans to foreign banks
17
18
19
20
21
22
1. Includes domestically chartered banks; U.S. branches and agencies of foreign
banks. New York investment companies majority owned by foreign banks, and
Edge Act corporations owned by domestically chartered and foreign banks.
2. Beginning December 1981, shifts of foreign loans and securities from U.S.
banking offices to international banking facilities (IBFs) reduced the levels of
several items. Seasonally adjusted data that include adjustments for the amounts
shifted from domestic offices to IBFs are available in the Board's G.7 (407) statistical release (available f r o m Publications Services, Board of Governors of the
Federal Reserve System, Washington, D . C . 20551).
3. Beginning June 2, 1982, total loans and securities, total loans and leases, and
loans to individuals were increased $0.5 billion due to acquisition of loans by a
commercial bank from a nonbank institution.
4. Reclassification of loans beginning September 29, 1982, increased real estate
loans $0.3 billion and decreased nonbank financial loans $0.3 billion.
5. Excludes loans to commercial banks in the United States.
6. Loans sold are those sold outright to a bank's own foreign branches, nonconsolidated nonbank affiliates of the bank, the bank's holding company (if not a
bank), and nonconsolidated nonbank subsidiaries of the holding company.
7. United States includes the 50 states and the District of Columbia.
NOTE. D a t a are prorated averages of Wednesday estimates for domestically
chartered banks, based on weekly reports of a sample of domestically chartered
banks and quarterly reports of all domestically chartered banks. For foreign-related
institutions, data are averages of month-end estimates based on weekly reports
from large agencies and branches and quarterly reports from all agencies, branches,
investment companies, and Edge Act corporations engaged in banking.
Commercial Banks
1.24
A17
MAJOR N O N D E P O S I T F U N D S OF C O M M E R C I A L B A N K S '
Monthly averages, billions of dollars
1980
1981
Dec.
Dec.
1982
Source
1
2
3
4
5
6
Total nondeposit funds
Seasonally adjusted 2
Not seasonally adjusted
Federal funds, RPs, and other borrowings from
nonbanks 3
Seasonally adjusted
Not seasonally adjusted
Net balances due to foreign-related institutions, not seasonally adjusted
Loans sold to affiliates, not seasonally
adjusted 4
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
122.0
122.6
98.5
98.9
89.5
87.9
88.0
88.5
83.8
84.8
83.5
84.3
82.0
85.5
84.2
86.3
79.8
81.8
78.1
82.6
71.8
77.5
76.4
78.7
111.1
111.6
114.2
114.6
116.2
114.6
113.8
114.3
113.6
114.6
113.1
113.9
113.2
116.6
113.8
115.9
114.3
116.3
116.7
121.2
114.8
120.5
122.0
124.4
8.2
-18.6
-29.6
-28.6
-32.6
-32.5
-34.0
-32.5
-37.3
-41.4
-45.9
-48.4
2.7
2.8
2.8
2.8
2.8
2.8
2.8
3.0
2.8
2.8
2.8
2.8
-14.7
37.5
22.8
-22.5
54.9
32.4
-27.1
55.1
28.0
-25.9
55.0
29.1
-28.8
56.7
27.9
-29.8
57.4
27.6
-29.9
58.1
28.3
-29.2
57.7
28.5
-33.0
60.6
27.6
-34.4
65.0
30.6
-38.5
68.3
29.8
-40.4
69.8
29.4
22.9
32.5
55.4
3.9
48.1
52.0
-2.5
50.0
47.5
-2.7
50.5
47.9
-3.8
50.0
46.2
-2.7
49.1
46.4
-4.1
49.5
45.4
-3.3
50.2
46.9
-4.4
52.6
48.3
-7.0
53.4
46.4
-7.3
54.1
46.7
-8.0
53.9
45.8
64.0
62.3
70.0
68.2
73.0
69.2
71.0
69.1
71.4
70.0
71.9
70.4
69.0
70.0
69.1
68.7
69.3
68.9
71.9
73.9
68.5
71.7
75.4
75.2
9.5
9.0
11.8
11.2
13.4
14.5
22.1
20.0
17.5
15.5
13.6
13.8
15.3
15.4
9.9
10.8
8.4
8.3
9.2
8.2
10.6
12.4
13.6
16.5
267.0
272.4
324.0
330.3
324.3
330.6
327.2
335.3
332.0
337.2
334.4
335.6
341.1
340.0
349.5
344.6
360.1
350.5
366.9
359.1
366.4
361.5
367.1
364.4
22.4
1.7
20.7
3.1
17.6
29.6
2.4
27.2
4.8
22.5
30.4
2.4
28.0
4.9
23.1
30.8
2.4
28.4
4.9
23.6
31.4
2.4
29.0
5.0
24.0
31.7
2.4
29.3
5.0
24.3
32.0
2.4
29.6
5.0
24.6
32.2
2.4
29.8
5.1
24.7
32.4
2.4
30.0
5.1
24.9
32.4
2.4
30.0
5.1
24.9
MEMO
7 Domestically chartered banks' net positions
with own foreign branches, not seasonally adjusted 5
K Gross due from balances
9
Gross due to balances
10 Foreign-related institutions' net positions
with directly related institutions, not seasonally adjusted 6
11
Gross due from balances
12
Gross due to balances
Security RP borrowings
13
Seasonally adjusted^
14
Not seasonally adjusted
U.S. Treasury demand balances 8
15
Seasonally adjusted
16
Not seasonally adjusted
Time deposits, $100,000 or more 9
17
Seasonally adjusted
18
Not seasonally adjusted
I B F A D J U S T M E N T S FOR SELECTED I T E M S 1 0
19
20
21
22 Item 7
23 Item 10
1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus agencies and branches of foreign banks. New
York investment companies majority owned by foreign banks, and Edge Act corporations owned by domestically chartered and foreign banks.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from
nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. Includes averages of Wednesday data for domestically chartered banks and averages
of current and previous month-end data for foreign-related institutions.
3. Other borrowings are borrowings on any instrument, such as a promissory
note or due bill, given for the purpose of borrowing money for the banking business.
This includes borrowings from Federal Reserve Banks and from foreign banks,
term federal funds, overdrawn due from bank balances, loan RPs, and participa-
tions in pooled loans. Includes averages of daily figures for m e m b e r banks and
averages of current and previous month-end data for foreign-related institutions.
4. Loans initially booked by the bank and later sold to affiliates that are still
held by affiliates. Averages of Wednesday data.
5. Averages of daily figures for member and n o n m e m b e r banks.
6. Averages of daily data.
7. Based on daily average data reported by 122 large banks.
8. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
9. Averages of Wednesday figures.
10. Estimated effects of shifts of foreign assets from U.S. banking offices to
international banking facilities (IBFs).
A18
1.25
DomesticNonfinancialStatistics • December 1982
ASSETS A N D LIABILITIES OF C O M M E R C I A L B A N K I N G INSTITUTIONS
Last-Wednesday-of-Month Series
Billions of dollars except for number of banks
1981
1982
Dec.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
1,261.2
920.1
321.0
599.1
111.5
229.6
1,271.2
929.1
325.6
603.5
112.3
229.8
1,285.8
939.9
332.4
607.5
114.5
231.4
1,292.6
947.2
336.7
610.5
113.0
232.4
1,300.7
954.3
341.9
612.4
111.5
234.9
1,315.4
969.1
348.7
620.4
113.4
232.9
1,313.2
966.6
346.4
620.3
113.4
233.2
1.318.8
970.6
346.2
624.4
113.7
234.5
1,337.1
985.9
354.4
631.5
115.0
236.2
1,343.0
988.5
355.2
633.3
119.4
235.1
1,346.9
990.4
354.9
635.5
122.2
234.3
155.3
19.8
30.2
50.3
55.0
151.6
19.7
24.8
51.0
56.1
164.5
18.9
25.7
55.9
64.0
153.6
19.9
25.5
52.4
55.8
153.0
20.0
21.7
54.9
56.3
165.4
20.1
18.2
59.6
67.4
154.5
20.5
25.1
55.4
53.6
160.8
20.3
26.1
58.8
55.5
157.4
20.4
17.0
60.4
59.6
162.1
20.5
23.5
61.3
56.8
169.4
19.0
22.0
64.2
64.1
DOMESTICALLY C H A R T E R E D
COMMERCIAL B A N K S 1
1
2
3
4
5
6
Loans and securities, excluding
interbank
Loans, excluding interbank
Commercial and industrial
Other
U.S. Treasury securities
Other securities
7
8
9
10
11
Cash assets, total
Currency and coin
Reserves with Federal Reserve Banks
Balances with depository institutions .
Cash items in process of collection . . .
12
Other assets 2
197.0
201.9
219.3
206.6
209.9
223.2
224.2
231.3
234.9
237.0
242.0
13
Total assets/total liabilities and capital...
1,613.5
1,624.7
1,669.5
1,652.9
1,663.6
1,704.0
1,692.0
1,710.9
1,729.3
1,742,1
1,758.3
14
15
16
17
Deposits
Demand
Savings
Time
1,205.8
322.3
223.0
660.5
1,213.7
316.7
222.5
674.4
1,250.8
338.3
229.9
682.6
1,231.0
315.5
226.6
688.9
1,244.0
315.4
227.6
701.0
1,284.8
345.2
228.9
710.7
1,266.4
314.4
227.1
724.8
1,279.1
315.5
229.5
734.1
1,290.7
323.0
230.9
736.8
1,300.2
326.5
238.2
735.4
1,315.9
337.8
244.7
733.4
18
19
20
Borrowings
Other liabilities
Residual (assets less liabilities)
191.9
89.7
126.1
191.0
92.5
127.5
196.4
94.4
128.0
201.1
92.4
128.4
195.1
93.9
130.6
189.7
96.6
133.0
195.4
99.1
131.1
196.0
103.9
131.9
202.8
103.4
132.5
203.7
106.2
132.0
198.1
109.5
134.7
16.7
14,744
17.1
14,702
10.9
14,709
16.6
14,710
7.1
14,722
7.5
14,736
8.0
14,752
5.9
14,770
17.0
14,785
11.7
14,797
2.4
14,782
1,321.6
975.8
360.3
615.5
114.5
231.4
1,331.5
984.4
364.6
619.7
115.5
231.6
1,345.8
995.1
372.4
622.7
117.6
233.1
1,350.7
1,000.6
374.7
625.8
116.1
234.1
1,358.5
1,007.6
379.3
628.3
114.3
236.6
1,374.3
1,023.7
386.7
637.0
116.2
234.4
1,371.3
1,020.8
384.4
636.4
115.7
234.8
1,376.6
1,024.7
384.5
640.2
115.8
236.1
1,397.3
1,042.4
395.0
647.4
117.2
237.7
1,401.7
1,042.3
393.1
649.2
122.7
236.7
1,405.5
1,044.1
393.7
650.4
125.6
235.8
170.0
19.8
31.3
62.7
56.1
165.8
19.7
26.1
63.0
57.1
178.8
18.9
26.9
68.0
65.0
168.1
19.9
26.8
64.6
56.8
167.7
20.0
23.0
67.3
57.3
180.3
20.2
19.6
72.2
68.4
169.3
20.5
26.5
67.8
54.6
176.2
20.4
27.5
71.8
56.5
173.7
20.4
18.4
74.2
60.6
178.7
20.5
25.0
75.3
57.8
185.2
19.0
23.5
77.6
65.2
MEMO:
U.S. Treasury note balances included in
borrowing
2 2 Number of banks
21
A L L COMMERCIAL BANKING
INSTITUTIONS 3
24
25
26
27
28
Loans and securities, excluding
interbank
Loans, excluding interbank
Commercial and industrial
Other
U.S. Treasury securities
Other securities
29
30
31
32
33
Cash assets, total
Currency and coin
Reserves with Federal Reserve Banks
Balances with depository institutions .
Cash items in process of collection . . .
34
Other assets 2
274.2
278.1
295.2
280.3
285.9
300.0
299.4
306.8
310.3
313.9
318.7
35
Total assets/total liabilities and capital...
1,765.8
1,775.5
1,819.9
1,799.1
1,812.1
1,854.7
1,840.1
1,859.6
1,881.3
1,894.2
1,909.4
36
37
38
39
Deposits
Demand
Savings
Time
1,251.5
335.1
223.2
693.1
1,258.3
329.4
222.8
706.2
1,295.0
350.8
230.2
714.0
1.272.7
327.9
226.9
717.9
1,286.2
327.9
227.8
730.4
1,325.8
357.4
229.1
739.3
1,307.3
326.8
227.4
753.1
1,321.7
327.7
229.7
764.3
1,335.5
335.1
231.1
769.2
1,345.2
338.9
238.5
767.8
1,361.2
350.0
244.9
766.3
40
41
42
Borrowings
Other liabilities
Residual (assets less liabilities)
253.5
132.8
128.1
255.9
131.8
129.4
260.0
135.0
129.9
260.8
135.3
130.3
255.3
138.2
132.5
253.2
140.8
134.9
260.0
139.8
133.0
260.0
144.1
133.8
267.6
143.8
134.4
268.3
146.9
133.9
261.0
150.6
136.6
16.7
15,213
17.1
15,201
10.9
15,214
16.6
15,215
7.1
15,235
7.5
15,235
8.0
15,271
5.9
15,289
17.0
15,311
11.7
15,330
2.4
15,318
23
MEMO:
43
44
U.S. Treasury note balances included in
borrowing
Number of banks
1. Domestically chartered commercial banks include all commercial banks in the
United States except branches of foreign banks; included are member and nonmember banks, stock savings banks, and nondeposit trust companies.
2. Other assets include loans to U.S. commercial banks.
3. Commercial banking institutions include domestically chartered commercial
banks, branches and agencies of foreign banks, Edge Act and Agreement corporations, and New York State foreign investment corporations.
NOTE. Figures are partly estimated. They include all bank-premises subsidiaries
and other significant majority-owned domestic subsidiaries. Data for domestically
chartered commercial banks are for the last Wednesday of the month. Data for
other banking institutions are estimates made on the last Wednesday of the month
based on a weekly reporting sample of foreign-related institutions and quarter-end
condition report data.
Weekly Reporting Banks
1.26
ALL L A R G E W E E K L Y R E P O R T I N G COMMERCIAL B A N K S with Domestic Assets of $750 Million or More on
December 31, 1977, Assets and Liabilities, 1982
Millions of dollars, Wednesday figures
Account
1 Cash items in process of collection
2 Demand deposits due from banks in the United States..
3 All other cash and due from depository institutions . . . .
4 Total loans and securities
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Securities
U.S. Treasury securities
Trading account
Investment account, by maturity
One year or less
Over one through five years
Over five years
Other securities
Trading account
Investment account
U.S. government agencies
States and political subdivisions, by maturity
One year or less
Over one year
Other bonds, corporate stocks and securities
Loans
19 Federal funds sold 1
20
To commercial banks
21
To nonbank brokers and dealers in securities
22
To others
23 Other loans, gross
24
Commercial and industrial
25
Bankers acceptances and commercial paper
26
All other
27
U.S. addressees
28
Non-U.S. addressees
29
Real estate
30
To individuals for personal expenditures
To financial institutions
31
Commercial banks in the United States
32
Banks in foreign countries
33
Sales finance, personal finance companies, etc
34
Other financial institutions
35
To nonbank brokers and dealers in securities
To others for purchasing and carrying securities 2
36
37
To finance agricultural production
38
All other
39 LESS: Unearned income
40
Loan loss reserve
41 Other loans, net
42 Lease financing receivables
43 All other assets
44 Total assets
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
A19
Deposits
D e m a n d deposits
Mutual savings banks
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Time and savings deposits
Savings
Individuals and nonprofit organizations
Partnerships and corporations operated for profit . .
Domestic governmental units
All Other
Time
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks 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 3
Other liabilities and subordinated notes and debentures
70 Total liabilities
71 Residual (total assets minus total liabilities) 4
Sept. 29
Oct. 6
Oct. 20
Oct. IIP
Nov. 3p
Nov. 10 p
Nov. 17 p
Nov. 24p
47,962
7,054
28,700
47,236
7,296
31,208
56,479
7,737
34,727
51,408
7,094
39,995
45,478
6,800
35,216
57,825
8,268
35,423
48,499
6,341
35,267
51,107
7,672
32,917
50,023
7,169
33,121
683,174
647,185
649,677
642,396
640,726
651,819
643,331
641,610
638,948
37,798
7,103
30,695
10,289
18,248
2,159
78,573
4,069
74,504
15,508
55,915
7,044
48,872
3,080
39,420
7,405
32,016
10,296
19,572
2,148
79,528
5,359
74,169
15,353
55,754
7,067
48,687
3,062
40,787
8,548
32,238
10,314
19,794
2,130
78,740
4,443
74,296
15,438
55,829
7,112
48,717
3,030
40,464
8,132
32,332
10,172
20,101
2,059
77,860
3,909
73,952
15,327
55,667
6,912
48,754
2,958
40,890
8,256
32,634
10,135
20,467
2,031
78,072
4,214
73,857
15,159
55,723
6,954
48,769
2,975
42,270
9,227
33,043
10,215
20,842
1,986
79,850
6,177
73,674
15,074
55,600
7,003
48,597
3,000
41,895
8,364
33,532
10,494
21,046
1,992
77,701
4,007
73,694
15,104
55,580
6,955
48,625
3,010
41,665
8,051
33,615
10,430
21,273
1,912
77,221
3,734
73,487
15,065
55,447
6,971
48,476
2,975
41,676
7,930
33,746
10,475
21,382
1,889
77,092
3,602
73,490
15,067
55,493
6,947
48,546
2,930
39,410
28,761
8,767
1,881
495,634
217,288
4,850
212,438
205,022
7,416
131,764
73,503
43,262
31,880
8,526
2,856
498,044
219,976
5,104
214,872
207,519
7,353
131,521
73,337
43,876
32,585
9,149
2,143
499,339
218,557
5,059
213,498
206,214
7,285
131,821
73,244
38,174
27,472
8,251
2,451
498,980
217,771
4,940
212,831
205,762
7,069
131,891
73,280
38,967
27,948
8,741
2,278
495,907
216,830
4,850
211,979
205,008
6,972
131,859
73,423
43,610
31,536
9,154
2,919
499,228
216,951
4,594
212,357
205,358
7,000
131,759
73,405
41,573
30,517
8,322
2,734
495,338
216,821
4,420
212,401
205,373
7,028
131,697
73,391
40,170
28,500
9,062
2,608
495,717
216,256
4,836
211,420
204,472
6,948
131,892
73,400
38,194
26,244
9,125
2,824
495,150
215,478
4,445
211,033
204,071
6,962
132,071
73,716
6,850
6,905
11,184
15,858
7,892
2,604
6,571
15,215
5,744
7,498
482,392
11,097
128,783
6,764
7,041
11,137
15,964
7,560
2,608
6,545
15,590
5,707
7,362
484,975
11,068
133,026
7,054
7,586
11,126
16,038
9,036
2,601
6,544
15,731
5,712
7,354
486,274
11,074
132,876
7,253
7,084
10,984
16,037
9,770
2,575
6,525
15,810
5,708
7,374
485,898
11,057
131,307
7,195
7,120
11,201
15,702
8,093
2,564
6,514
15,405
5,701
7,409
482,797
11,031
129,418
7,594
6,685
11,329
15,983
9,500
2,707
6,488
16,826
5,616
7,523
486,089
11,064
137,569
7,017
6,702
11,252
16,160
8,021
2,847
6,478
14,952
5,621
7,556
482,161
11,061
135,569
7,037
7,080
11,119
15,926
7,854
2,877
6,430
15,848
5,610
7,554
482,553
11,052
133,259
6,944
7,078
10,975
15,849
8,137
2,956
6,400
15,546
5,596
7,567
481,986
11,068
132,109
861,769
877,018
892,570
883,256
868,670
901,968
880,068
877,617
872,437
164,541
526
124,068
4,479
1,874
17,963
5,793
957
8,881
401,320
79,898
76,565
2,770
546
17
321,422
281,320
21,659
559
12,948
171,131
670
128,934
4,950
1,544
20,307
5,492
1,366
7,868
403,591
83,425
80,023
2,793
592
17
320,166
280,282
21,262
576
13,124
179,704
668
134,918
4,541
1,560
21,577
6,847
914
8,678
404,202
83,256
79,935
2,762
542
17
320,945
280,808
21,371
607
13,320
173,364
605
130,354
4,468
2,671
18,485
6,142
1,080
9,559
403,985
83,093
79,796
2,747
534
16
320,892
281,001
21,388
635
12,974
166,343
510
126,347
4,532
1,902
18,070
6,216
1,012
7,754
402,545
82,742
79,383
2,797
546
16
319,802
280,004
21,341
627
12,886
187,996
766
139,931
5,391
3,014
22,492
5,854
1,224
9,324
403,346
85,199
81,788
2,821
568
23
318,146
278,788
20,953
629
12,721
168,264
623
128,045
4,495
1,790
17,799
5,784
856
8,871
403,018
85,338
81,846
2,846
626
21
317,680
278,151
21,108
645
12,806
173,171
608
131,601
4,878
1,065
20,335
5,891
850
7,942
400,656
85,250
81,774
2,838
617
21
315,406
275,662
21,414
641
12,712
171,784
558
128,522
5,069
2,343
20,182
6,539
834
7,737
402,432
84,412
80,999
2,858
533
22
318,020
278,219
21,464
638
12,833
4,936
4,921
4,838
4,894
4,943
5,056
4,969
4,976
4,867
575
13,187
141,899
83,593
7
9,968
152,645
82,457
12
8,950
158,730
83,651
957
8,780
153,195
85,942
383
8,720
147,412
86,422
395
3,820
160,351
88,622
2,869
1,355
159,288
87,805
136
3,373
154,995
87,851
502
1,299
149,557
89,606
805,115
819,798
835,248
826,223
811,826
844,530
822,599
820,183
815,180
56,654
57,220
57,322
57,033
56,844
57,438
57,469
57,434
57,257
1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes federal funds purchased and securities sold under agreements to
repurchase; for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31, 1977, see table 1.13.
Oct. 13
4. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
A20
1.27
DomesticNonfinancialStatistics • December 1982
L A R G E WEEKLY R E P O R T I N G C O M M E R C I A L B A N K S with Domestic Assets of $1 Billion or More on
December 31, 1977, Assets and Liabilities
Millions of dollars, Wednesday figures, 1982
Account
1 Cash items in process of collection
2 D e m a n d deposits due from banks in the United States..
3 All other cash and due from depository institutions . . . .
4 Total loans and securities
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Securities
U.S. Treasury securities
Trading account
Investment account, by maturity
One year or less
Over one through five years
Over five years
Other securities
Trading account
Investment account
U.S. government agencies
States and political subdivision, by maturity
One year or less
Over one year
Other bonds, corporate stocks and securities
Loans
19 Federal funds sold'
20
To commercial banks
21
To nonbank brokers and dealers in securities
22
To others
23 Other loans, gross
24
Commercial and industrial
25
Bankers acceptances and commercial paper
26
All other
27
U.S. addressees
28
Non-U.S. addressees
29
Real estate
30
To individuals for personal expenditures
To financial institutions
31
Commercial banks in the United States
32
Banks in foreign countries
33
Sales finance, personal finance companies, etc
34
Other financial institutions
35
To nonbank brokers and dealers in securities
36
To others for purchasing and carrying securities 2
37
To finance agricultural production
38
All other
39 LESS: Unearned income
40
Loan loss reserve
41 O t h e r l o a n s . n e t
42 Lease financing receivables
43 All other assets
44 Total assets
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
Deposits
Demand deposits
Mutual savings banks
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Time and savings deposits
Savings
Individuals and nonprofit organizations
Partnerships and corporations operated for profit . .
Domestic governmental units
All other
Time
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks 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 3
Other liabilities and subordinated notes and
debentures
70 Total liabilities
71 Residual (total assets minus total liabilities) 4
Sept. 29
Oct. 6
Oct. 20
Oct. 27P
Nov.
3P
Nov. 10 p
Nov. 17 P
Nov. 24^
45,517
6,376
26,227
44,564
6,585
28,658
53,150
6,973
32,033
48,619
6,418
36,950
43,012
6,150
32,517
54,668
7,463
33,034
46,042
5,719
32,694
48,335
6,921
30,378
47,192
6,357
30,471
597,772
605,929
608,462
601,574
599,853
609,767
601,345
599,783
597,539
34,422
7,008
27,414
9,117
16,402
1,894
72,185
3,941
68,244
14,336
51,038
6,281
44,757
2,870
36,080
7,306
28,774
9,167
17,724
1,884
73,200
5,226
67,974
14,179
50,938
6,328
44,610
2,857
37,380
8,412
28,968
9,173
17,930
1,866
72,355
4,292
68,063
14,274
50,959
6,357
44,602
2,829
37,034
8,020
29,014
9,015
18,204
1,795
71,475
3,754
67,720
14,155
50,808
6,194
44,615
2,757
37,435
8,127
29,307
9,033
18,507
1,767
71,663
4,077
67,586
13,946
50,870
6,224
44,646
2,770
38,671
9,066
29,605
9,160
18,724
1,722
73,364
5,981
67,382
13,856
50,731
6,326
44,405
2,794
38,144
8,190
29,954
9,372
18,858
1,724
71,243
3,857
67,386
13,858
50,721
6,279
44,442
2,807
37,903
7,902
30,001
9,318
19,036
1,646
70,805
3,557
67,248
13,845
50,627
6,306
44,321
2,776
37,922
7,800
30,122
9,369
19,128
1,624
70,678
3,435
67,242
13,825
50,687
6,292
44,394
2,731
35,673
25,575
8,250
1,848
467,700
206,297
4,477
201,820
194,530
7,289
124,370
65,992
38,569
27,657
8,132
2,780
470,113
208,921
4,728
204,193
196,966
7,227
124,131
65,813
39,406
28,672
8,680
2,053
471,355
207,571
4,725
202,846
195,688
7,158
124,408
65,714
34,174
23,995
7,811
2,368
470,940
206,774
4,581
202,193
195,253
6,940
124,455
65,721
34,997
24,498
8,298
2,201
467,839
205,820
4,482
201,338
194,494
6,843
124,425
65,865
38,676
27,179
8,685
2,812
471,168
205,907
4,246
201,662
194,791
6,871
124,384
65,860
36,900
26,388
7,860
2,651
467,217
205,753
4,055
201,698
194,799
6,899
124,324
65,754
35,617
24,460
8,635
2,523
467,601
205,237
4,504
200,733
193,911
6,822
124,470
65,746
34,047
22,643
8,676
2,727
467,048
204,517
4,106
200,411
193,576
6,835
124,654
66,023
6,686
6,821
11,013
15,459
7,850
2,371
6,390
14,450
5,094
7,113
455,493
10,760
125,016
6,606
6,958
10,961
15,550
7,523
2,377
6,369
14,906
5,064
6,969
458,079
10,731
129,288
6,846
7,492
10,954
15,624
9,005
2,373
6,365
15,001
5,070
6,964
459,321
10,736
129,075
7,088
7,007
10,805
15,604
9,740
2,348
6,345
15,054
5,066
6,983
458,891
10,719
127,630
7,038
7,025
11,021
15,268
8,066
2,332
6,330
14,649
5,062
7,019
455,758
10,692
125,630
7,425
6,604
11,144
15,542
9,447
2,472
6,316
16,066
4,985
7,127
459,056
10,723
133,688
6,852
6,622
11,073
15,717
7,989
2,618
6,306
14,209
4,995
7,164
455,058
10,720
131,695
6,872
7,014
10,941
15,477
7,825
2,650
6,261
15,109
4,979
7,165
455,457
10,711
129,377
6,796
6,996
10,800
15,421
8,094
2,730
6,237
14,780
4,969
7,186
454,892
10,701
128,302
811,669
825,755
840,429
831,910
817,855
849,342
828,214
825,504
820,562
153,122
509
115,121
3,966
1,687
16,589
5,719
935
8,595
376,548
73,711
70,642
2,545
507
17
302,838
264,957
19,736
496
12,712
159,302
645
119,764
4,355
1,387
18,795
5,446
1,365
7,546
378,766
76,950
73,820
2,569
544
17
301,816
264,122
19,376
505
12,892
167,127
648
125,120
4,098
1,415
19,784
6,799
913
8,352
379,390
76,812
73,759
2,534
502
17
302,578
264,713
19,428
531
13,068
161,603
585
121,235
3,948
2,414
17,029
6,098
1,072
9,222
379,104
76,656
73,627
2,516
498
16
302,448
264,843
19,411
567
12,732
154,856
494
117,375
4,035
1,746
16,624
6,170
999
7,412
377,661
76,303
73,213
2,569
505
16
301,358
263,828
19,390
558
12,640
175,287
736
130,265
4,830
2,761
20,757
5,798
1,217
8,922
378,307
78,574
75,434
2,594
524
23
299,733
262,612
19,020
564
12,481
156,632
604
119,004
4,002
1,642
16,377
5,738
831
8,434
377,727
78,689
75,475
2,610
583
21
299,038
261,801
19,122
572
12,574
161,012
589
122,176
4,341
917
18,834
5,824
847
7,485
375,473
78,623
75,417
2,606
580
21
296,850
259,343
19,473
568
12,489
159,618
538
119,086
4,495
2,166
18,635
6,489
833
7,375
377,263
77,852
74,704
2,626
499
22
299,412
261,887
19,496
566
12,596
4,936
4,921
4,838
4,894
4,943
5,056
4,969
4,976
4,867
535
12,407
134,507
7
9,374
144,244
12
8,420
150,209
957
8,192
144,687
383
8,150
139,156
395
3,546
151,465
2,839
1,258
150,192
136
3,101
146,099
492
1,195
140,728
81,423
80,384
81,496
83,866
84,331
86,453
85,634
85,750
87,509
758,542
772,077
786,654
778,409
764,538
795,453
774,282
771,573
766,806
53,127
53,678
53,775
53,501
53,317
53,890
53,932
53,932
53,756
1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes federal funds purchased and securities sold under agreement to repurchase; for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31, 1977, see table 1.13.
Oct. 13
4. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
Weekly Reporting Banks
1.28
A21
L A R G E W E E K L Y R E P O R T I N G C O M M E R C I A L B A N K S IN N E W Y O R K CITY Assets and Liabilities
Millions of dollars, Wednesday figures, 1982
Account
1 Cash items in process of collection
2 Demand deposits due from banks in the United
States
3 All other cash and due from depository institutions..
4 Total loans and securities 1
Sept. 29
Oct. 6
Oct. 13
Oct. 20
Oct. 27P
Nov. 3 '
Nov. 1 0 '
Nov. 1 7 '
Nov. 2 4 '
16,655
14,748
17,746
18,857
15,254
19,745
17,009
15,993
15,052
1,191
4,522
1,457
5,166
1,548
7,677
1,469
6,938
1,290
6,276
1,589
6,838
1,058
6,491
1,501
6,421
979
4,488
142,266
144,281
146,298
145,837
144,468
147,597
143,318
144,885
143,362
6,556
991
4,989
576
7,786
1,068
6,136
581
7,731
1,062
6,088
581
7,649
1,098
6,060
491
7,689
1,100
6,087
502
7,999
1,153
6,322
523
8,047
1,154
6,363
530
8,271
1,227
6,565
479
8,330
1,227
6,671
432
13,928
2,084
10,920
1,253
9,666
924
13,756
1,965
10,865
1,233
9,632
926
13,705
1,956
10,848
1,209
9,639
901
13,694
1,962
10,824
1,160
9,664
907
13,663
1,919
10,825
1,194
9,631
918
13,581
1,842
10,829
1,179
9,650
909
13,449
1,751
10,788
1,175
9,613
910
13,312
1,698
10,736
1,166
9,570
878
13,282
1,697
10,764
1,180
9,584
821
8,982
4,045
4,067
869
116,578
61,222
1,197
60,025
58,410
1,615
18,941
11,594
9,019
4,277
3,931
810
117,495
62,685
1,545
61,140
59,640
1,500
18,833
11,578
9,562
4,345
4,444
773
119,085
62,514
1,371
61,143
59,612
1,531
18,861
11,605
8,835
4,112
3,845
878
119,453
62,005
1,358
60,647
59,206
1,441
18,837
11,619
9,924
4,978
4,070
875
117,027
61,670
1,410
60,261
58,787
1,474
18,891
11,636
11,116
5,409
4,580
1,127
118,747
61,390
1,155
60,236
58,756
1,480
18,770
11,616
9,256
4,458
3,814
983
116,438
61,312
1,036
60,277
58,701
1,575
18,756
11,627
9,889
4,563
4,195
1,131
117,277
61,314
1,118
60,196
58,678
1,519
18,884
11,621
9,096
3,750
4,183
1,163
116,535
60,875
1,111
59,764
58,149
1,615
18,946
11,647
1,986
2,544
4,723
4,902
5,516
649
424
4,074
1,490
2,289
112,799
2,093
50,615
2,168
2,632
4,609
4,879
4,788
651
420
4,250
1,491
2,283
113,720
2,066
53,243
2,168
3,162
4,583
5,012
5,980
651
419
4,128
1,490
2,294
115,300
2,094
53,245
2,466
2,837
4,582
4,885
7,004
660
417
4,140
1,498
2,296
115,659
2,093
52,652
2,202
2,768
4,821
4,793
5,183
652
387
4,023
1,511
2,324
113,192
2,074
52,291
2,703
2,558
4,914
4,919
6,194
767
371
4,546
1,487
2,359
114,900
2,063
58,914
2,057
2,493
4,800
4,989
5,474
874
392
3,662
1,493
2,378
112,567
2,062
55,710
2,180
2,862
4,857
4,928
5,535
867
392
3,835
1,484
2,381
113,412
2,044
54,500
2,155
2,796
4,776
4,877
5,355
927
380
3,800
1,486
2,395
112,654
2,060
54,626
217,342
220,962
228,609
227,846
221,653
236,746
225,649
225,344
220,567
45,781
249
30,445
519
474
3,877
4,491
686
5,042
72,705
9,645
9,311
47,270
329
31,245
1,032
316
5,294
4,198
1,112
3,745
73,271
10,129
9,779
49,039
330
32,390
648
523
4,476
5,254
653
4,766
73,877
10,236
9,892
50,807
286
33,546
520
616
4,779
4,783
801
5,475
74,567
10,303
9,959
45,960
225
30,813
440
452
4,408
4,850
742
4,030
75,236
10,295
9,962
53,641
322
36,158
574
679
5,617
4,540
962
4,787
75,122
10,784
10,429
45,410
297
30,430
485
490
3,919
4,544
566
4,679
75,886
10,870
10,464
45,862
270
31,154
433
195
4,734
4,637
571
3,867
74,596
10,925
10,537
45,878
252
30,392
501
497
4,600
5,260
626
3,748
74,577
10,487
10,150
228
105
1
63,060
53,183
2,300
195
5,376
225
123
1
63,143
52,920
2,368
199
5,638
222
118
1
63,640
53,272
2,474
194
5,757
222
120
1
64,264
54,019
2,443
217
5,554
227
105
1
64,941
54,663
2,539
216
5,517
230
124
1
64,338
54,058
2,497
208
5,475
231
174
1
65,016
54,589
2,563
208
5,575
232
154
1
63,670
52,855
2,681
205
5,810
228
106
2
64,090
53,302
2,618
201
5,938
2,006
2,017
1,942
2,030
2,005
2,099
2,080
2,120
2,032
2,221
54,977
675
2,259
50,120
375
2,182
48,340
926
55,656
1,405
368
51,984
920
53,522
342
49,172
Securities
s
(S
7
8
9
10
11
V
13
14
15
16
17
18
Investment account, by maturity
One year or less
Over one through five years
Over five years
Investment account
U.S. government agencies
States and political subdivision, by maturity . . . .
One year or less
Over one year
Other bonds, corporate stocks and s e c u r i t i e s . . . .
Loans
19 Federal funds sold 3
20
To commercial banks
21
To nonbank brokers and dealers in securities
72
To others
23 Other loans, gross
2.4
Commercial and industrial
25
Bankers acceptances and commercial paper
26
All other
27
U.S. addressees
28
Non-U.S. addressees
29
Real estate
30
To individuals for personal expenditures
31
To financial institutions
Commercial banks in the United States
32
Banks in foreign countries
33
Sales finance, personal finance companies, e t c . . .
34
Other financial institutions
35
To nonbank brokers and dealers in securities
36
To others for purchasing and carrying securities 4 .
37
To finance agricultural production
38
All other
39 LESS: Unearned income
40
Loan loss reserve
41 Other loans, net
42 Lease financing receivables
43 All other assets 5
44 Total assets
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
Deposits
D e m a n d deposits
Mutual savings banks
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Time and savings deposits
Savings
Individuals and nonprofit organizations
Partnerships and corporations operated for
profit
Domestic governmental units
All other
Time
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks in the United States
Foreign governments, official institutions, and
banks
Liabilities for borrowed money
66
67
Treasury tax-and-loan notes
68
All other liabilities for borrowed money 6
69 Other liabilities and subordinated notes and
debentures
70 Total liabilities
28
3,134
47,864
29,857
29,274
30,074
31,067
31,404
32,987
32,145
32,012
32,219
199,369
202,569
210,188
209,495
203,495
218,333
207,199
206,912
202,188
17,973
18,393
18,421
18,351
18,158
18,414
18,450
18,433
18,378
71 Residual (total assets minus total liabilities) 7
1.
2.
3.
4.
Excludes trading account securities.
Not available due to confidentiality.
Includes securities purchased under agreements to resell.
Other than financial institutions and brokers and dealers.
2,355
50,398
5. Includes trading account securities.
6. Includes federal funds purchased and securities sold under agreements to
repurchase.
7. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
A22
1.29
DomesticNonfinancialStatistics • December 1982
L A R G E WEEKLY R E P O R T I N G C O M M E R C I A L B A N K S
Balance Sheet Memoranda
Millions of dollars, Wednesday figures, 1982
Account
Sept. 29
Oct. 6
Oct. 13
Oct. 20
Oct. 27?
Nov.
3P
Nov. 1 0 '
Nov. 17 P
Nov. 24^
B A N K S WITH A S S E T S OF $ 7 5 0 M I L L I O N OR M O R E
1 Total loans (gross) and securities adjusted 1
2 Total loans (gross) adjusted 1
3 D e m a n d deposits adjusted 2
615,804
499,433
96,742
621,610
502,662
102,044
623,104
503,577
100,087
620,754
502,430
100,800
618,693
499,731
100,893
625,827
503,707
104,666
618,974
499,378
100,176
619,237
500,350
100,664
618,923
500,155
99,236
4 Time deposits in accounts of $100,000 or more
5
Negotiable CDs
6
Other time deposits
205,706
148,198
57,508
205,728
148,055
57,672
206,260
148,414
57,847
206,021
147,832
58,189
204,854
146,399
58,455
203,596
144,812
58,784
203,283
144,031
59,252
201,052
141,808
59,244
202,996
143,275
59,722
2,861
2,281
580
2,750
2,196
554
2,815
2,227
588
2,790
2,244
546
2,883
2,264
619
2,874
2,238
636
2,886
2,252
634
2,933
2,308
624
2,956
2,345
611
10 Total loans (gross} and securities adjusted 1
11 Total loans (gross) adjusted 1
12 D e m a n d deposits adjusted 2
577,719
471,112
89,329
583,699
474,419
94,556
584,977
475,242
92,778
582,541
474,032
93,542
580,398
471,300
93,474
587,275
475,240
97,100
580,264
470,877
92,571
580,595
471,887
92,927
580,255
471,656
91,625
13 Time deposits in accounts of $100,000 or more
14
Negotiable CDs
15
Other time deposits
196,287
142,623
53,664
196,430
142,585
53,846
196,977
142,991
53,985
196,706
142,432
54,274
195,533
140,951
54,582
194,250
139,344
54,906
193,718
138,413
55,305
191,571
136,220
55,351
193,506
137,754
55,752
2,784
2,218
566
2,679
2,136
543
2,738
2,161
576
2,716
2,182
534
2,808
2,201
607
2,800
2,176
624
2,815
2,193
622
2,862
2,249
613
2,884
2,285
599
140,013
119,528
24,776
141,609
120,068
26,912
143,570
122,133
26,294
143,053
121,710
26,556
141,123
119,771
25,845
143,331
121,751
27,600
140,675
119,179
23,991
142,008
120,424
24,939
141,338
119,726
25,729
48,155
37,157
10,998
48,339
37,122
11,217
48,911
37,500
11,411
49,667
38,229
11,439
50,341
38,768
11,573
49,736
38,016
11,720
50,679
38,695
11,984
49,381
37,535
11,847
49,440
37,657
11,783
7 Loans sold outright to affiliates 3
8
Commercial and industrial
9
Other
B A N K S WITH A S S E T S OF $ 1 B I L L I O N O R M O R E
16 Loans sold outright to affiliates 3
17
Commercial and industrial
18
Other
B A N K S IN N E W Y O R K C I T Y
19 Total loans (gross) and securities adjusted 1 , 4
20 Total loans (gross) adjusted 1
21 D e m a n d deposits adjusted 2
22 Time deposits in accounts of $100,000 or more
23
Negotiable C D s
24
Other time deposits
1. Exclusive of loans and federal funds transactions with domestic commercial
banks.
2. All demand deposits except U.S. government and domestic banks less cash
items in process of collection.
3. Loans sold are those sold outright to a bank's own foreign branches, nonconsolidated nonbank affiliates of the bank, the bank's holding company (if not a
bank), and nonconsolidated nonbank subsidiaries of the holding company,
4. Excludes trading account securities.
Weekly Reporting Banks
1.291
L A R G E W E E K L Y REPORTING B R A N C H E S A N D A G E N C I E S OF F O R E I G N B A N K S
Millions of dollars, Wednesday figures, 1982
Account
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Cash and due f r o m depository institutions
Total loans and securities
U.S. Treasury securities
Other securities
Federal funds sold 1
To commercial banks in United States . .
To others
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial
paper
All other
U.S. addressees
Non-U.S. addressees
To financial institutions
Commercial banks in United States . .
Banks in foreign countries
Nonbank financial institutions
For purchasing and carrying securities . .
All other
Other assets (claims on nonrelated
parties)
Net due from related institutions
Total assets
23 Deposits or credit balances 2
24
Credit balances
25
D e m a n d deposits
26
Individuals, partnerships, and
corporations
27
Other
28
Total time and savings
29
Individuals, partnerships, and
corporations
30
Other
31 Borrowings 3
32
Federal funds purchased 4
33
From commercial banks in United
States
34
From others
35
Other liabilities for borrowed monev . . .
36
To commercial banks in United States
37
To others
38 Other liabilities to nonrelated parties
39 Net due to related institutions
40 Total liabilities
Sept. 29
Oct. 6
Oct. 13
Oct. 20
Oct. 27P
Nov. 3p
A23
Assets and Liabilities
Nov. 1 0 '
Nov. I I P
Nov. 2 4 '
7,253
47,712
1,757
840
4,042
3,758
283
41,074
20,156
7,148
46,767
1,860
857
3,287
2,918
369
40,763
19,331
7,281
46,024
2,156
855
3,046
2,822
224
39,966
18,857
7,352
46,393
2,702
856
2,558
2,339
220
40,277
18,918
7,610
46,082
2,715
853
2,943
2,722
220
39,571
18,677
7,636
46,043
2,731
854
2,828
2,629
200
39,629
19,024
7,923
43,934
2,848
759
2,643
2,374
270
37,683
18,545
7,210
45,846
2,797
834
3,172
2,919
253
39,042
19,011
6,975
46,173
2,802
825
2,978
2,832
146
39,567
19,276
3,286
16,849
14,896
1,953
16,169
13,166
2,308
694
433
4,336
3,060
16,270
14,340
1,931
16,635
13,523
2,447
665
479
4,318
2,956
15,901
13,977
1,924
16,527
13,446
2,456
625
413
4,169
2,931
15,987
13,906
2,081
16,723
13,609
2,375
740
351
4,284
2,826
15,851
13,832
2,020
16,433
13,175
2,562
696
310
4,151
2,893
16,131
14,046
2,085
16,078
12,869
2,570
639
420
4,107
2,589
15,956
13,999
1,957
14,886
11,804
2,420
661
311
3,941
2,918
16,093
14,122
1,971
15,931
12,857
2,430
644
203
3,897
2,874
16,402
14,456
1,946
16,125
13,067
2,455
603
291
3,875
11,859
11,153
77,977
11,459
13,066
78,440
11,762
12,900
77,966
12,070
12,401
78,216
12,046
12,612
78,350
12,048
12,864
78,591
12,017
13,689
77,563
12,009
12,255
77,319
12,228
12,184
77,560
23,771
212
1,906
24,192
245
2,163
24,489
254
1,975
24,114
206
2,159
23,487
216
1,961
23,820
270
2,234
23,660
246
1,941
23,400
204
1,987
24,192
213
1,918
771
1,135
21,653
821
1,342
21,784
922
1,053
22,260
943
1,216
21,748
839
1,122
21,310
1,079
1,155
21,316
903
1,038
21,473
895
1,091
21,209
944
975
22,060
18,609
3,044
32,624
8,058
18,673
3,111
34,301
9,572
19,092
3,168
32,383
8,541
18,593
3,156
32,365
8,374
18,179
3,131
33,016
9,379
18,071
3,245
33,694
10,144
18,380
3,093
32,018
9,645
18,131
3,078
31,632
8,603
19,054
3,006
31,773
8,038
7,227
831
24,565
22,333
2,232
11,629
9,954
77,977
8,743
829
24,728
22,582
2,146
11,269
8,679
78,440
7,677
864
23,842
21,750
2,092
11,596
9,498
77,966
7,412
962
23,991
21,885
2,106
11,870
9,868
78,216
8,482
897
23,637
21,537
2,100
11,825
10,022
78,350
9,080
1,064
23,550
21,177
2,373
11,665
9,412
78,591
8,556
1,089
22,373
19,783
2,590
11,794
10,090
77,563
7,548
1,056
23,028
20,510
2,519
11,611
10,677
77,319
6,950
1,087
23,735
21,204
2,531
11,814
9,782
77,560
30,788
28,190
30,326
27,610
29,755
26,744
30,445
26,888
30,184
26,616
30,545
26,960
29,756
26,148
30,069
26,438
30,274
26,646
MEMO
41 Total loans (gross) and securities
adjusted 5
42 Total loans (gross) adjusted 5
1. Includes securities purchased under agreements to resell.
2. Balances due to other than directly related institutions.
3. Borrowings f r o m other than directly related institutions.
4. Includes securities sold under agreements to repurchase.
5. Excludes loans and federal funds transactions with commercial banks in United
States
A24
1.30
DomesticNonfinancialStatistics • December 1982
LARGE WEEKLY REPORTING COMMERCIAL BANKS
Millions of dollars
Industry classification
July 28
Aug. 25
Domestic Classified Commercial and Industrial Loans
Outstanding
Net change during
1982
1982
Sept. 29
Oct. 27
Nov. 24P
Q2
Sept.
Q3
Oct.
Nov.?
1 Durable goods manufacturing
28,520
29,117
31.428
31,299
30,238
448
2,348
2,310
-129
-1,061
2 Nondurable goods manufacturing
3
Food, liquor, and tobacco
4
Textiles, apparel, and leather
5
Petroleum refining
6
Chemicals and rubber
7
Other nondurable goods
24,815
4,679
5,068
4,840
5,197
5,030
24,866
4,596
5,064
4,717
5,518
4,971
25,813
4,840
4,855
5,323
5,810
4,985
24,773
4,639
4,571
5,464
5,423
4,677
24,678
4,847
4,297
5,519
5,404
4,611
2,137
254
328
647
412
496
514
36
-7
228
259
1
947
245
-209
606
291
14
-1,040
-202
-284
141
-387
-308
-96
208
-274
55
-19
-66
8 Mining (including crude petroleum and natural gas)
27,983
27,313
28,406
29,322
29,507
2,401
154
1,092
916
185
9 Trade
10
Commodity dealers
11
Other wholesale
12
Retail
28,570
1,648
13,632
13,290
28,320
1,788
13,488
13,044
29,052
1,978
13,976
13,099
28,965
2,036
13,697
13,231
28,825
2,115
13,682
13,029
376
-461
257
580
-134
116
202
-453
732
190
487
54
-87
59
-278
132
-140
78
-15
-203
13 Transportation, communication,
and other public utilities
14
Transportation
15
Communication
16
Other public utilities
24,962
8,868
4,832
11,263
24,751
8,964
4,905
10,882
24,916
8,976
5.154
10,786
24,962
8,913
5.255
10,793
25,179
9,039
5,300
10,839
1,372
73
537
762
-86
-251
376
-210
165
11
250
-95
46
-62
101
7
217
126
45
46
17 Construction
18 Services
19 All other 1
7,922
28,859
17,330
7,825
28,960
17,536
7.680
29.315
17,920
7,621
29,705
17,848
7,635
29,540
17,975
509
1,611
-21
-81
563
675
-146
356
385
-59
390
-72
14
-165
127
188,962
188,689
194,530
194,494
193,576
8,832
3,954
5,842
-36
-919
87,207
87,010
89,135
89,776
90,050
2,606
-674
2,125
640
275
20 Total domestic loans
21 MEMO: Term loans (original maturity more
than 1 year) included in domestic loans .
1. Includes commercial and industrial loans at a few banks with assets of $1
billion or more that do not classify their loans.
Commercial Paper
1.31
A25
GROSS D E M A N D DEPOSITS of Individuals, Partnerships, and Corporations 1
Billions of dollars, estimated daily-average balances
Commercial banks
Type of holder
1978
Dec.
1980
1979 2
Dec.
Dec.
Mar. 3
1 All holders—Individuals, partnerships, and
corporations
294.6
302.2
315.5
280.8
2
3
4
5
6
27.8
152.7
97.4
2.7
14.1
27.1
157.7
99.2
3.1
15.1
29.8
162.3
102.4
3.3
17.2
30.8
144.3
86.7
3.4
15.6
Financial business
Nonfinancial business
Consumer
Foreign
Other
1982
1981
June 4
Sept.
f
1
n.a.
1
1
T
Dec.
Mar.
June
277.5
288.9
268.9
271.5
28.2
148.6
82.1
3.1
15.5
28.0
154.8
86.6
2.9
16.7
27.8
138.7
84.6
3.1
14.6
28.6
141.4
83.7
2.9
15.0
Weekly reporting banks
1978
Dec.
1980
1979 s
Dec.
Dec.
7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
Mar.
147.0
139.3
147.4
133.2
19.8
79.0
38.2
2.5
7.5
20.1
74.1
34.3
3.0
7.8
21.8
78.3
35.6
3.1
8.6
21.9
69.8
30.6
3.2
7.7
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.
2. Beginning with the March 1979 survey, the demand deposit ownership survey
sample was reduced to 232 banks from 349 banks, and the estimation procedure
was modified slightly. To aid in comparing estimates based on the old and new
reporting sample, the following estimates in billions of dollars for December 1978
have been constructed using the new smaller sample; financial business, 27.0;
nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and other, 15.1.
3. D e m a n d deposit ownership data for March 1981 are subject to greater than
normal errors reflecting unusual reporting difficulties associated with funds shifted
to negotiable order of withdrawal ( N O W ) accounts authorized at year-end 1980.
For the household category, the $15.7 billion decline in demand deposits at all
commercial banks between December 1980 and March 1981 has an estimated
standard error of $4.8 billion.
1982
1981
3
June
4
Sept.
Dec.
Mar.
June
!
131.3
137.5
126.8
127.9
n.a.
1
20.7
71.2
28.7
2.9
7.9
21.0
75.2
30.4
2.8
8.0
20.2
67.1
29.2
2.9
7.3
20.2
67.7
29.7
2.8
7.5
1
t1
4. Demand deposit ownership survey estimates for June 1981 are not yet available
due to unresolved reporting errors.
5. After the end of 1978 the large weekly reporting bank panel was changed to
170 large commercial banks, each of which had total assets in domestic offices
exceeding $750 million as of Dec. 31, 1977. See " A n n o u n c e m e n t s , " p. 408 in the
May 1978 BULLETIN. Beginning in March 1979, d e m a n d deposit ownership estimates for these large banks are constructed quarterly on the basis of 97 sample
banks and are not comparable with earlier data. T h e following estimates in billions
of dollars for December 1978 have been constructed for the new large-bank panel;
financial business, 18.2; nonfinancial business, 67.2; consumer, 32.8; foreign, 2.5;
other, 6.8.
A26
1.32
DomesticNonfinancialStatistics • December 1982
COMMERCIAL PAPER A N D BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
Instrument
1977
Dec.
1978
Dec.
1979 1
Dec.
1982
1980
Dec.
1981
Dec.
May
June
July
Aug.
Sept.
Oct.
Commercial paper (seasonally adjusted)
1 All issuers
2
3
4
5
6
Financial companies 2
Dealer-placed
paper3
Total
Bank-related (not seasonally
adjusted)
Directly placed paper4
Total
Bank-related (not seasonally
adjusted)
Nonfinancial companies 5
65,051
83,438
112,803
124,524
165,508
176,210
178,842
180,669
177,182
173,836
170,253
35,130
8,796
12.181
17,359
19,790
30,188
34,683
36,685
37,961
38,066
36,692
2,132
3,521
2,784
3,561
6,045
8,003
7,188
6,427
6,038
5,924
5,791
40,574
51,647
64,757
67,854
81,660
82,390
84,774
85,684
81,707
81,347
79,846
7,102
15,681
12.314
19.610
17,598
30,687
22,382
36,880
26,914
53,660
30,576
59,137
30,828
57,383
31,141
57,024
28,901
57,409
27,761
5-5,797
27,712
55,277
Bankers dollar acceptances (not seasonally adjusted unless noted otherwise)
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
25,450
33,700
45,321
54,744
69,226
71,601
71,765
72,559
72,709
73,818
10,434
8,915
1,519
8.579
7,653
927
9,865
8,327
1,538
10,564
8,963
1,601
10,857
9,743
1,115
11,104
9,879
1,225
10,362
9,175
1,188
11,164
9,734
1,431
11,805
10,740
1,065
10,752
9,370
1,382
954
362
13,700
1
664
24,456
704
1,382
33.370
776
1,791
41,614
0
1,442
56,926
0
1,234
59,262
0
1,348
60,054
0
1,250
60,145
0
1,239
59,664
0
1,139
61,927
6,378
5,863
13,209
8.574
7.586
17.540
10,270
9,640
25,411
11,776
12,712
30,257
14,765
15,400
39,061
14,979
16,255
40,458
15,213
15,649
40,842
15,094
16,167
41,298
14,921
15,883
41,898
16,075
15,608
42,136
1. A change in reporting instructions results in offsetting shifts in the dealerplaced and directly placed financial company paper in October 1979.
2. 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.
.
n a.
3. Includes all financial company paper sold by dealers in the open market.
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.
Business Lending
1.33
All
PRIME R A T E C H A R G E D BY B A N K S on Short-Term Business Loans
Percent per annum
Effective d a t e
3
9
17
20
24
1
2
18
23
1.34
17.50
16.5017.00
17.00
16.50
16.00
15.75
16.50
17.00
16.50
Effective D a t e
Rate
July
16.00
15.50
15.00
14.50
14.00
13.50
13.00
12.00
11.50
19.61
Aug.
20.
29.
2.
16.
18.
23.
7.
14.
Nov. 22
1981—May . . . .
Oct.
Average
rate
Month
20.03
20.39
20.50
20.08
18.45
16.84
15.75
15.75
16.56
16.56
1981-—June
July
Aug
Oct
Nov
Dec
1982-—Jan
Feb
Mar
1982—Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
TERMS OF L E N D I N G A T COMMERCIAL B A N K S Survey of Loans Made, August 2-7, 1982*
Size of loan (in t h o u s a n d s of dollars)
Item
sizes
1-24
25^19
50-99
100-499
500-999
1,000
a n d over
S H O R T - T E R M C O M M E R C I A L AND INDUSTRIAL L O A N S
1
2
3
4
5
A m o u n t of loans ( t h o u s a n d s of dollars)
N u m b e r of loans
Weighted-average maturity (months)
W e i g h t e d - a v e r a g e interest r a t e ( p e r c e n t p e r a n n u m ) . .
Interquartile range1
37,561,878
165,698
1.2
13.27
11.91-13.62
936,686
115,899
3.8
17.89
17.00-18.74
665,314
20,423
4.0
17.22
16.99-17.94
816,533
12,555
3.8
17.25
16.13-18.00
1,982,909
10,543
4.0
16.81
16.08-18.12
911,670
1,397
3.5
15.92
15.25-17.05
32,248,746
4,882
.8
12.66
11.85-12.83
23.1
63.6
9.8
34.0
37.3
15.0
41.4
32.6
14.2
50.8
37.3
21.0
60.7
45.5
23.2
68.1
67.3
33.1
18.2
66.7
7.8
Percentage of amount of loans
6 With floating rate
7 Made under commitment
8 With n o s t a t e d m a t u r i t y
1-99
9
10
11
12
13
A m o u n t of loans ( t h o u s a n d s of dollars)
N u m b e r of loans
Weighted-average maturity (months)
W e i g h t e d - a v e r a g e interest rate ( p e r c e n t p e r a n n u m ) . .
Interquartile range1
3.907,991
25,774
46.5
15.22
12.33-16.96
272,632
23,334
36.0
18.90
17.23-19.56
350,030
1,637
32.2
16.78
16.50-17.35
158,684
242
34.9
16.20
15.87-17.23
3,126,644
562
49.6
14.68
12.16-16.25
60.0
61.2
39.3
45.0
93.1
43.8
79.9
81.4
57.0
63.5
Percentage of amount of loans
14 With floating rate
15 M a d e u n d e r c o m m i t m e n t
1-24
16
17
18
19
20
A m o u n t of loans ( t h o u s a n d s of dollars)
N u m b e r of loans
Weighted-average maturity (months)
W e i g h t e d - a v e r a g e interest rate ( p e r c e n t p e r a n n u m ) . .
Interquartile range1
21
22
23
24
Percentage of amount of loans
With floating rate
Secured by real estate
Made under commitment
With n o s t a t e d m a t u r i t y
166,552
26,780
5.1
18.29
17.55-19.26
80,023
2,149
5.0
17.79
17.32-18.12
89,757
1,533
5.9
18.59
17.94-19.86
326,158
1,453
7.9
19.19
17.81-20.62
709,068
271
9.3
15.77
14.09-17.69
63.9
73.7
68.6
5.6
26.3
47.3
24.8
.8
92.1
93.1
91.7
3.7
21.0
22.1
19.7
3.4
94.0
87.9
89.6
2.8
61.2
77.6
72.9
8.4
21.0
6.7
72.4
37.5
4.6
57.9
82.7
2.6
14.7
44.4
5.4
50.2
9.9
10.1
80.0
12.3
6.2
81.5
All
sizes
A m o u n t of loans ( t h o u s a n d s of dollars)
N u m b e r of loans
Weighted-average maturity (months)
W e i g h t e d - a v e r a g e interest r a t e ( p e r c e n t p e r a n n u m ) . .
Interquartile range1
33
34
35
36
37
By purpose of loan
F e e d e r livestock
O t h e r livestock
Other current operating expenses
Farm machinery and equipment
Other
1-9
10-24
25-49
50-99
100-249
250
a n d over
1,217,411
59,556
5.4
16.81
16.33-17.99
144,565
41,163
5.6
17.48
16.87-18.12
158,245
10,914
5.8
17.31
16.63-18.03
121,973
3,734
5.7
17.66
17.17-18.28
140,376
2,105
6.4
17.49
17.00-17.98
194,110
1,251
6.0
17.45
17.05-17.99
458,141
388
4.7
15.72
15.00-17.23
16.76
15.56
16.95
17.27
16.92
17.67
17.02
17.47
17.75
17.54
17.26
17.74
17.27
16.78
18.02
18.18
17.47
17.51
18.22
17.64
17.13
17.22
15.87
1. I n t e r e s t r a t e r a n g e t h a t covers t h e m i d d l e 50 percent of the total dollar a m o u n t
of loans m a d e .
2. F e w e r t h a n 10 sample loans.
NOTE. For m o r e detail, see t h e B o a r d ' s E . 2 (111) statistical release.
500 a n d over
50-99
1,371,559
32,185
7.9
17.19
15.75-18.97
Type of
construction
25 1- to 4-family
26 Multifamily
27 Nonresidential
28
29
30
31
32
25-49
*
17.66
*
17.89
*
17.38
*
17.84
*
14.92
*
16.23
Write to the B a n k i n g Section, Division of R e s e a r c h and Statistics, B o a r d of
G o v e r n o r s of the F e d e r a l R e s e r v e System, W a s h i n g t o n , D . C . 20551, a b o u t the
differences in statistics because of changes in the reporting f o r m .
A28
1.35
DomesticNonfinancialStatistics • December 1982
INTEREST R A T E S Money and Capital Markets
Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.
1982
Instrument
1979
1980
1982, week ending
1981
Aug.
Sept.
Oct.
Nov.
Oct. 29
Nov. 5
Nov. 12
Nov. 19
Nov. 26
MONEY MARKET RATES
1 Federal funds 1 - 2
Commercial paper 3 4
2
1-month
3
3-month
4
6-month
Finance paper, directly placed 3 - 4
5
1-month
6
3-month
7
6-month
Bankers acceptances 4 - 5
3-month
8
9
6-month
Certificates of deposit, secondary market 6
10
1-month
11
3-month
12
6-month
13 Eurodollar deposits, 3-month 2
U.S. Treasury bills 4
Secondary market 7
14
3-month
6-month
15
16
1-year
Auction average 8
3-month
17
18
6-month
19
11.19
13.36
16.38
10.12
10.31
9.71
9.20
9.44
9.43
9.45
9.61
8.91
10.86
10.97
10.91
12.76
12.66
12.29
15.69
15.32
14.76
9.50
10.15
10.80
9.96
10.36
10.86
9.08
9.20
9.21
8.66
8.69
8.72
8.74
8.86
8.93
8.68
8.74
8.71
8.73
8.75
8.76
8.88
8.87
8.89
8.34
8.45
8.50
10.78
10.47
10.25
12.44
11.49
11.28
15.30
14.08
13.73
9.32
9.62
9.93
9.89
9.65
9.63
8.89
8.60
8.60
8.51
8.39
8.42
8.57
8.36
8.36
8.53
8.40
8.40
8.69
8.43
8.43
8.71
8.55
8.56
8.11
8.18
8.28
11.04
n.a.
12.78
n.a.
15.32
14.66
10.34
10.90
10.40
10.82
9.24
9.21
8.76
8.77
8.93
8.99
8.75
8.70
8.81
8.81
8.91
8.88
8.55
8.58
11.03
11.22
11.44
11.96
12.91
13.07
12.99
14.00
15.91
15.91
15.77
16.79
10.07
10.61
11.53
11.57
10.23
11.66
11.46
11.74
9.36
9.51
9.67
10.43
8.82
8.95
9.13
9.77
9.01
9.14
9.42
9.95
8.87
8.96
9.08
9.81
8.90
9.01
9.18
9.73
9.06
9.19
9.31
9.93
8.55
8.69
8.91
9.70
10.07
10.06
9.75
11.43
11.37
10.89
14.03
13.80
13.14
8.68
9.88
10.37
7.92
9.37
9.92
7.71
8.29
8.63
8.07
8.34
8.44
7.93
8.39
8.58
7.78
8.24
8.36
8.07
8.39
8.47
8.31
8.41
8.49
7.94
8.18
8.35
10.041
10.017
9.817
11.506
11.374
10.748
14.077
13.811
13.159
9.006
10.105
11.195
8.196
9.539
10.286
7.750
8.299
9.521
8.042
8.319
8.567
8.031
8.472
7.813
8.231
8.567
7.964
8.397
8.446
8.539
7.944
8.109
10.67
10.12
12.05
11.77
14.78
14.56
11.43
12.32
10.85
11.78
9.32
10.19
9.16
9.80
9.26
9.93
9.19
9.80
11.55
11.48
11.43
11.46
11.39
11.30
14.44
14.24
14.06
13.91
13.72
13.44
12.62
13.00
13.14
13.06
12.91
12.77
12.03
12.25
12.36
12.34
12.16
12.07
10.62
10.80
10.88
10.91
10.97
11.17
9.98
10.38
10.53
10.55
10.57
10.54
10.52
10.73
10.84
10.87
10.97
11.16
9.96
10.44
10.54
10.53
10.56
10.46
9.23
9.86
9.90
10.01
10.51
10.56
10.56
10.56
10.47
9.07
9.76
9.71
9.52
9.48
9.44
9.33
9.29
9.03
9.68
9.85
9.96
10.34
10.48
10.48
10.55
10.70
9.92
10.21
10.46
10.52
10.52
10.47
8.74
10.81
12.87
12.15
11.48
10.51
10.18
10.44
10.03
10.11
10.22
10.23
5.92
6.73
6.52
7.85
9.01
8.59
10.43
11.76
11.33
10.68
12.36
11.23
9.70
11.88'
10.66
9.15 r
10.66 r
9.69
9.45
10.79
10.07
9.40
10.75
10.05
9.40
10.85
9.96
9.30
10.80
9.92
9.70
10.80
10.20
9.40
10.70
10.16
10.12
9.63
9.94
10.20
10.69
12.75
11.94
12.50
12.89
13.67
15.06
14.17
14.75
15.29
16.04
15.06
13.71
14.48
15.70
16.32
14.34
12.94
13.72
15.07
15.63
13.54
12.12
12.97
14.34
14.73
13.08
11.68
12.51
13.81
14.30
13.40
12.00
12.86
14.15
14.57
13.14
11.68
12.53
13.92
14.44
13.08
11.62
12.49
13.80
14.39
13.06
11.70
12.52
13.80
14.23
13.02
11.67
12.50
13.73
14.18
10.03
10.02
12.74
12.70
15.56
15.56
13.95
14.47
13.50
13.57
12.20
12.34
11.76
11.88
12.20
12.15
11.72
11.92
11.76
11.88
11.80
11.90
9.07
5.46
10.57
5.25
12.36
5.41
12.78
6.32
12.41
5.63
11.71
5.12
11.18
4.92
11.46
5.05
11.29
4.79
11.08
4.84
11.20
4.94
11.15
5.10
CAPITAL M A R K E T R A T E S
U.S. Treasury notes and bonds 9
Constant maturities 1 0
20
1-year
21
2-year
v>
23
3-year
24
5-year
25
7-year
26
10-year
20-year
27
30-year
28
29
Composite 1 2
Over 10 years (long-term)
State and local notes and bonds
Moody's series 13
30
Aaa
31
Baa
32
Bond Buyer series 14
33
34
35
36
37
38
39
40
41
Corporate bonds
Seasoned issues 15
All industries
Aaa
Aa
A
Baa
Aaa utility bonds 1 6
Recently offered issues
MEMO: Dividend/price ratio 1 7
Preferred stocks
Common stocks
1. Weekly and monthly figures are averages of all calendar days, where the
rate for a weekend or holiday is taken to be the rate prevailing on the preceding
business day. T h e daily rate is the average of the rates on a given day weighted
by the volume of transactions at these rates.
2. Weekly figures are statement week averages—that is, averages for the week
ending Wednesday.
3. Unweighted average of offering rates quoted by at least five dealers (in the
case of commercial paper), or finance companies (in the case of finance paper).
Before November 1979, maturities for data shown are 30-59 days, 90-119 days,
and 120-179 days for commercial p a p e r ; and 30-59 days, 90-119 days, and 150179 days for finance paper.
4. Yields are quoted on a bank-discount basis, rather than an investment yield
basis (which would give a higher figure).
5. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quoted by the dealers).
6. Unweighted average of offered rates quoted by at least five dealers early in
the day.
7. Unweighted average of closing bid rates quoted by at least five dealers.
8. Rates are recorded in the week in which bills are issued.
9. Yields are based on closing bid prices quoted by at least five dealers.
10. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields
are read from a yield curve at fixed maturities. Based on only recently issued,
actively traded securities.
11. Each weekly figure is calculated on a biweekly basis and is the average of
five business days ending on the Monday following the calendar week. The biweekly
rate is used to determine the maximum interest rate payable in the following twoweek period on small saver certificates. (See table 1.16.)
12. Unweighted averages of yields (to maturity or call) for all outstanding notes
and bonds neither due nor callable in less than 10 years, including several very low
yielding "flower" bonds.
13. General obligations only, based on figures for Thursday, from Moody's
Investors Service.
14. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
15. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
16. Compilation of the Federal Reserve. Issues included are long-term (20 years
or more). New-issue yields are based on quotations on date of offering; those on
recently offered issues (included only for first 4 weeks after termination of underwriter price restrictions), on Friday close-of-business quotations.
17. Standard and Poor's corporate series. Preferred stock ratio based on a sample
of ten issues: four public utilities, four industrials, one financial, and one transportation. Common stock ratios on the 500 stocks in the price index.
Securities Markets
1.36
STOCK MARKET
A29
Selected Statistics
1982
Indicator
1979
1980
1981
Mar.
May
Apr.
June
July
Aug.
Sept.
Oct.
Nov.
Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
Industrial
?.
3
Transportation
4
Utility
5
Finance
6 Standard & Poor's Corporation (1941-43 = 1 0 ) 1 . . .
7 American Stock Exchange
(Aug. 31, 1973 = 100)
55.67
61.82
45.20
36.46
58.65
107.94
68.06
78.64
60.52
37.35
64.28
118.71
74.02
85.44
72.61
38.90
73.52
128.05
63.86
71.51
55.19
38.57
69.08
110.84
66.97
75.59
57.91
39.20
71.44
116.31
67.07
75.97
56.84
39.40
69.16
116.35
63.10
71.59
53.07
37.34
63.19
109.70
62.82
71.37
53.40
37.20
61.59
109.38
62.91
70.98
53.98
38.19
62.84
109.65
70.21
80.08
61.39
40.36
69.66
122.43
76.10
86.67
66.64
42.67
80.59
132.66
79.75
90.76
71.92
43.46
88.66
138.10
186.56
300.94
343.58
255.08
271.15
272.88
254.72
250.63
' 253.54
286.22
308.74
333.54
Volume of trading
(thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
32,233
4,182
44,867
6,377
46,967
5,346
55,227
4,329
54,116
3,937
51,328
4,292
50,481
3,720
54,530
3,611
76,031
5,567
73,710
5,064
98,508
7,828
88,431
8,672
Customer financing (end-of-period balances, in millions of dollars)
10 Regulated margin credit at
brokers-dealers 2
11,619
14,721
14,411
12,095
12,202
12,237
11,783
11,729
11,396
11,208
11,728
11 Margin stock 3
12 Convertible bonds
13 Subscription issues
11,450
167
2
14,500
219
2
14,150
259
2
11,840
249
6
11,950
251
1
11,990
246
1
11,540
242
1
11,470
258
1
11,150
245
1
10,950
257
1
11,450
277
1
1,105
4,060
2,105
6,070
3,515
7,150
3,895
6,510
4,145
6,270
4,175
6,355
4,215
6,345
4,410
6,730
4,470
7,550
4,990
7,475
5,520
8,120
Free credit balances at brokers''
14 Margin-account
15 Cash-account
n a.
Margin-account debt at brokers (percentage distribution, end of period)
16 Total
17
18
19
20
21
22
By equity class (in
U n d e r 40
40-49
50-59
60-69
70-79
80 or more
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
16.0
29.0
27.0
14.0
8.0
7.0
14.0
30.0
25.0
14.0
9.0
8.0
37.0
21.0
22.0
10.0
6.0
6.0
39.0
24.0
16.0
10.0
6.0
5.0
34.0
25.0
18.0
10.0
7.0
6.0
40.0
24.0
15.0
9.0
6.0
5.0
43.0
21.0
16.0
9.0
6.0
5.0
44.0
23.0
13.0
9.0
6.0
5.0
30.0
26.0
18.0
12.0
8.0
6.0
27.0
26.0
20.0
12.0
8.0
7.0
21.0
24.0
22.0
16.0
9.0
8.0
percent)5
n a.
Special miscellaneous-account balances at brokers (end of period)
23 Total balances (millions of dollars) 6
Distribution by equity status
(percent)
24 Net credit status
Debt status, equity of
25
60 percent or more
26
Less than 60 percent
21,690
16,150
25,870
28,030
28,252
28,521
29,798
29,773
31,102
31,644
33,689
44.2
47.8
58.0
59.0
57.0
58.0
59.0
59.0
60.0
61.0
61.0
47.0
8.8
44.4
7.7
31.0
11.0
28.0
13.0
29.0
13.0
29.0
13.0
28.0
13.0
26.0
14.0
28.0
12.0
27.0
12.0
29.0
10.0
'
n a.
Margin requirements (percent of market value and effective date) 7
27 Margin stocks
28 Convertible bonds
29 Short sales
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Margin credit includes all credit extended to purchase or carry stocks or related
equity instruments and secured at least in part by stock. Credit extended is endof-month data for m e m b e r firms of the New York Stock Exchange.
In addition to assigning a current loan value to margin stock generally, Regulations T and U permit special loan values for convertible bonds and stock acquired
through exercise of subscription rights.
3. A distribution of this total by equity class is shown on lines 17-22.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
Jan. 3, 1974
50
50
50
5. Each customer's equity in his collateral (market value of collateral less net
debit balance) is expressed as a percentage of current collateral values.
6. Balances that may be used by customers as the margin deposit required for
additional purchases. Balances may arise as transfers based on loan values of other
collateral in the customer's margin account or deposits of cash (usually sales proceeds) occur.
7. Regulations G , T, and U of the Federal Reserve Board of Governors, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount
of credit to purchase and carry margin stocks that may be extended on securities
as collateral by prescribing a maximum loan value, which is a specified percentage
of the market value of the collateral at the time the credit is extended. Margin
requirements are the difference between the market value (100 percent) and the
maximum loan value. The term "margin stocks" is defined in the corresponding
regulation.
A30
1.37
DomesticNonfinancialStatistics • December 1982
SELECTED F I N A N C I A L INSTITUTIONS
Selected Assets and Liabilities
Millions of dollars, end of period
1982
Account
1979
1980
1981
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.'
Oct.P
Savings a n d loan associations
1
2
3
4
Assets
Mortgages
Cash a n d investment securities 1
Other
578,962
475,688
46,341
56,933
630,712
503,192
57,928
69,592
664,167
518,547
63,123
82,497
672,219
516,488
66,949
88,782
678,365
516,111
68,125
94,129
681,6%
514,702
68,227
98,767
687,273
514,046
70,302
102,925
692,759
512,997
70,824
108,938
697,690
510,678
72,854
114,158
703,399
509,776
74,141
119,482
691,077
493,899
74,692
122,486
691,381
490,860
75,368
125,153
578,962
630,712
664,167
672,219
678,365
681,696
687,273
692,759
697,690
703,399
691,077
691,381
470,004
55,232
40,441
14,791
9,582
11,506
511,636
64,586
47,045
17,541
8,767
12,394
525,061
88,782
62,794
25,988
6,385
15,544
529,756
89,146
62,690
26,456
6,161
20,078
536,265
90,689
63,636
27,053
6,418
18,505
533,595
93,560
65,347
28,213
6,568
21,948
535,215
94,117
65,216
28,901
6,766
25,756
538,667
96,850
66,925
29,925
7,116
24,671
539,830
98,433
67,019
31,414
7,250
27,375
542,648
98,803
66,374
32,429
7,491
29,965
547,628
99,771
65,567
34,204
8,084
19,202
546,699
100,977
65,005
35,972
!,317
19,303
12 N e t w o r t h 2
32,638
33,329
28,395
27,078
26,488
26,025
25,419
25,455
24,802
24,492
24,476
24,402
13 MEMO: M o r t g a g e loan c o m m i t m e n t s
outstanding3
16,007
16,102
15,225
15,397
15,582
16,375
16,622
16,828
15,924
16,943
17,256
18,093
5 Liabilities and net worth
6 Savings capital
7 Borrowed money
8
FHLBB
y
Other
10 L o a n s in process
LI O t h e r
M u t u a l savings b a n k s 4
14 Assets
163,405
171,564
175,728
175,763
174,776
174,813
174,952
175,091
175,563
175,563
173,487
98,908
9,253
99,865
11,733
99,997
14,753
98,838
15,604
97,464
16,514
97,160
16,424
96,334
17,409
96,346
16,546
96,231
17,104
94,448
16,919
94,382
17,458
7,658
2,930
37,086
3,156
4,412
8,949
2,390
39,282
4,334
5,011
9,810
2,288
37,791
5,442
5,649
9,966
2,293
37,781
5,412
5,869
10,072
2,276
37,379
5,219
5,852
10,146
2,269
37,473
5,494
5,846
9,968
2,259
37,486
5,469
6,027
10,112
2,253
36,958
6,040
6,836
10,036
2,247
36,670
6,167
7,109
9,653
2,214
35,956
6,405
7,185
9,404
2,191
35,845
6,695
7,514
22 Liabilities
163,405
171,564
175,728
175,763
174,776
174,813
174,952
175,091
175,563
172,780
173,487
23
24
25
26
27
28
29
30
146,006
144,070
61,123
82,947
1,936
5,873
11,525
154,805
151,416
53,971
97,445
2,086
6,695
11,368
155,110
153,003
49,425
103,578
2,108
10,632
9,986
154,626
152,616
48,297
104,318
2,010
11,464
9,672
154,022
151,979
48,412
103,567
2,043
11,132
9,622
153,187
151,021
47,733
103,288
2,166
12,141
9,485
153,354
151,253
47,895
103,358
2,101
12,246
9,352
154,273
152,030
47,942
104,088
2,243
11,230
9,588
154,204
151,845
47,534
104,310
2,359
11,940
9,419
151,897
149,613
46,856
102,756
2,285
11,691
21,145
153,089
150,795
47,496
103,299
2,294
11,166
9,232
3,182
1,476
1,293
950
978
953
998
1,010
992
1,056
1,217
15
16
17
18
19
20
21
Loans
Mortgage
Other
Securities
U.S. government5
State a n d local g o v e r n m e n t
Corporate and other6
Cash
O t h e r assets
Deposits
Regular7
O r d i n a r y savings
Time
Other
O t h e r liabilities
G e n e r a l reserve accounts
MEMO: M o r t g a g e loan c o m m i t m e n t s
outstanding8
n a.
Life insurance c o m p a n i e s
31 Assets
32
33
34
35
36
37
38
39
40
41
42
Securities
Government
U n i t e d States 9
State a n d local
Foreign10
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
O t h e r assets
432,282
479,210
525,803
531,166
535,402
539,801
543,470
547,075
551,124
557,094
563,321
338
4,888
6,428
9,022
222,332
178,171
48,757
119,421
13,007
44,825
27,563
21,378
5,345
6,701
9,332
238,113
190,747
47,366
131,030
15,063
41,411
31,702
25,209
8,167
7,151
9,891
255,769
208,098
47,670
137,747
18,278
48,706
40,094
26,208
9,019
7,302
9,887
259,449
213,180
46,269
138,372
18,702
49,490
38,945
26,958
9,576
7,369
10,013
259,770
213,683
46,087
138,762
19,167
50,052
40,696
27,346
9,832
7,467
10,045
262,599
215,586
47,013
139,206
19,516
50,573
40,561
27,835
10,187
7,543
10,105
264,107
217,594
46,513
139,455
19,713
50,992
41,368
28,243
10,403
7,643
10,197
265,080
219,006
46,074
139,539
19,959
51,438
42,816
28,694
10,774
7,705
10,215
267,627
221,503
46,124
140,044
20,198
51,867
42,694
30,263
12,214
7,799
10,250
270,029
221,642
48,387
140,244
20,176
52,238
44,144
30,759
12,606
7,834
10,319
273,539
223,783
49,756
140,404
20,268
52,525
45,826
n a.
Credit unions
43 Total assets/liabilities and capital
65,854
71,709
77,682
78,986
81,055
81,351
82,858
84,107
84,423
85,102
86,554
44
45
46
47
48
49
50
51
35,934
29,920
53,125
28,698
24,426
56,232
35,530
25,702
39,801
31,908
47,774
25,627
22,147
64,399
36,348
28,051
42,382
35,300
50,448
27,458
22,990
68,871
37,574
31,297
43,111
35,875
49,610
27,051
22,559
70,227
38,331
31,896
44,263
36,792
49,668
27,119
22,549
72,218
39,431
32,787
44,371
36,980
49,533
27,064
22,469
72,569
39,688
32,881
45,077
37,781
49,556
27,073
22,483
73,602
40,213
33,389
45,705
38,402
49,919
27,295
22,624
74,834
40,710
34,124
45,931
38,492
50,133
27,351
22,782
75,088
40,969
34,119
46,310
38,792
50,733
27,659
23,074
75,331
41,178
34,153
47,076
39,478
51,047
27,862
23,185
76,874
41,961
34,913
Federal
State
Loans outstanding
Federal
State
Savings
F e d e r a l (shares)
State (shares a n d deposits)
F o r n o t e s see b o t t o m of o p p o s i t e p a g e .
E n d of T a p e 06589STB15--12-14-82 10-10-30
n.a.
Federal Finance
1.38
A31
F E D E R A L FISCAL A N D FINANCING O P E R A T I O N S
Millions of dollars
Calendar year
Type of account or operation
Fiscal
year
1980
Fiscal
year
1981
Fiscal
year
1982
HI
U.S. budget
1 Receipts"
2 Outlays 1 ' 2
3 Surplus, or deficit ( - )
4
Trust funds
5
Federal f u n d s 3
Off-budget
entities (surplus,
1982
1982
1981
H2
HI
Aug.
Sept.
Oct.
517,112
576,675
-59,563
8,801
-68,364
599,272
657,204
-57,932
6,817
-64,749
617,766
728,424
-110,658
5,456
-116,115
317,304
333,115
-15,811
5,797
-21,608
301,777
358,558
-56,780
-8,085
-48,697
322,478
348,678
-26,200
-17,690
-43,889
44,924
59,628
-14,704
-1,997
-12,707
59,694
61,403
-1,708
10,246
-11,954
40,539
66,708
-26,169
-6,269
-19,889
-14,549
303
-20,769
-236
-14,142
-3,190
-11,046
-900
-8,728
-1,752
-7,942
227
-1,336
-711
-1,371
-1,495
-521
226
-73,808
-78,936
-127,989
-27,757
-67,260
-33,914
-16,751
-4,575
-26,462
70,515
79,329
134,912
33,213
54,081
41,728
21,086
22,129
6,228
-355
3,648
-1,878
1,485
-11,936
5,013
2,873
-8,328
-1,111
14,290
-408
-7,405
2,338
-6,673
-20,648
3,094
13,964
6,270
20,990
4,102
16,888
18,670
3,520
15,150
29,164
10,975
18,189
16,389
2,923
13,466
12,046
4,301
7,745
10,999
4,099
6,900
8,019
3,234
4,785
29,164
10,975
18,189
14,078
2,309
11,769
or deficit
6 Federal Financing Bank outlays
7 Other4
U.S. budget plus off-budget,
including
Federal Financing Bank
8 Surplus, or deficit ( - )
Source or financing
9
Borrowing from the public
10
Cash and monetary assets (decrease, or
increase ( - ) ) '
11
Other6
MEMO:
12 Treasury operating balance (level, end of
period)
13
Federal Reserve Banks
14
Tax and loan accounts
1. T h e Budget of the U.S. Government, Fiscal Year 1983, has reclassified supplemental medical insurance premiums and voluntary hospital insurance premiums,
previously included in other social insurance receipts, as offsetting receipts in the
health function.
2. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was reclassified from an off-budget agency to an on-budget agency in the Department of
Labor.
3. Half-year figures are calculated as a residual (total surplus/deficit less trust
fund surplus/deficit).
4. Other off-budget includes Postal Service Fund; Rural Electrification and Telephone Revolving F u n d ; and Rural Telephone Bank; it also includes petroleum
acquisition and transportation and strategic petroleum reserve effective November
5. Includes U.S. Treasury operating cash accounts; special drawing rights; gold
tranche drawing rights; loans to International Monetary Fund; and other cash and
monetary assets.
6. Includes accrued interest payable to the public; allocations of special drawing
rights; deposit funds; miscellaneous liability (including checks outstanding) ana
asset accounts; seigniorage; increment on j o l d ; net gain/loss for U.S. currency
valuation adjustment; net gain/loss for I M F valuation adjustment; and profit on
the sale of gold.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
G o v e r n m e n t , " Treasury Bulletin, and the Budget of the United States
Government,
Fiscal Year 1983.
N O T E S T O T A B L E 1.37
1. Holdings of stock of the Federal H o m e Loan Banks are included in "other
assets."
2. Includes net undistributed income, which is accrued by most, but not all,
associations.
3. Excludes figures for loans in process, which are shown as a liability.
4. The N A M S B reports that, effective April 1979, balance sheet data are not
strictly comparable with previous months. Beginning April 1979, data are reported
on a net-of-valuation-reserves basis. Before that date, data were reported on a
gross-of-valuation-reserves basis.
5. Beginning April 1979, includes obligations of U.S. government agencies. Before that date, this item was included in "Corporate and o t h e r . "
6. Includes securities of foreign governments and international organizations
and, before April 1979, nonguaranteed issues of U.S. government agencies.
7. Excludes checking, club, and school accounts.
8. Commitments outstanding (including loans in process) of banks in New York
State as reported to the Savings Banks Association of the state of New York.
9. Direct and guaranteed obligations. Excludes federal agency issues not guaranteed, which are shown in the table under "Business" securities.
10. Issues of foreign governments and their subdivisions and bonds of the International Bank for Reconstruction and Development.
NOTE. Savings and loan associations: Estimates by the F H L B B for all associations
in the United States. D a t a are based on monthly reports of federally insured
associations and annual reports of other associations. Even when revised, data for
current and preceding vear are subject to further revision.
Mutual savings banks'. Estimates of National Association of Mutual Savings
Banks for all savings banks in the United States.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for differences between market and book values are not made on each item separately but
are included, in total, in "other assets."
Credit unions: Estimates by the National Credit Union Administration for a
group of federal and state-chartered credit unions that account for about 30 percent
of credit union assets. Figures are preliminary and revised annually to incorporate
recent benchmark data.
A32
1.39
DomesticNonfinancialStatistics • December 1982
U.S. B U D G E T R E C E I P T S A N D O U T L A Y S
Millions of dollars
Calendar year
Source or type
Fiscal
year
1980
Fiscal
year
1981
Fiscal
year
1982
1982
1981
HI
H2
HI
1982
Aug.
Sept.
Oct.
RECEIPTS
1 All sources 1
2 Individual income taxes, net
3
Withheld
4
Presidential Election Campaign F u n d . . .
5
Nonwithheld
6
Refunds
Corporation income taxes
7
Gross receipts
8
Refunds
9 Social insurance taxes and contributions,
net
10
Payroll employment taxes and
contributions 2
11
Self-employment taxes and
contributions 3
12
Unemployment insurance
13
Other net receipts 1 - 4
517,112
599,272
617,766
317,304
301,777
322,478
44,924
59,694
40,539
244,069
223,763
39
63,746
43,479
285,917
256,332
41
76,844
47,299
298,111
267,474
39
85,096
54,498
142,889
126,101
36
59,907
43,155
147,035
134,199
5
17,391
4,559
150,565
133,575
34
66,174
49,217
20,867
20,521
1
1,529
1,185
32,592
21.814
0
11.429
651
20,832
19,541
0
1,791
500
72,380
7,780
73,733
12,596
65,991
16,784
44,048
6,565
31,056
738
37,836
8,028
1,694
1,271
8,118
1,972
2,371
2,832
157,803
182,720
201,131
101,316
91,592
108,079
17,961
15,608
15,157
133,042
156,953
172.744
83,851
82,984
88,795
14,823
14.283
14,036
5,723
15,336
3,702
6,041
16,129
3,598
7,941
16,234
4,212
6,240
9,205
2,020
244
6,355
2,009
7,357
9,809
2,119
0
2,743
396
790
167
368
36
762
324
24,329
7,174
6,389
12,748
40,839
8,083
6,787
13,790
36,311
8,854
7,991
16.161
21,945
3,926
3,259
6,487
22,097
4,661
3,742
8,441
17,525
4,310
4,208
7,984
2,828
747
681
1,418
2,732
688
595
1,333
2,623
675
500
1,212
18 All types 1 - 6
576,675
657,204
728,424
333,115
358,558
346,286
59,628
61,403
66,708
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology . ..
Energy
Natural resources and environment
Agriculture
135,856
10,733
5,722
6,313
13,812
4,762
159,765
11,130
6,359
10,277
13.525
5,572
187.397
9,983
7,096
4,844
13,086
14,808
80,005
5,999
3.314
5.677
6,476
3,101
87,421
4,655
3,388
4,394
7,296
5,181
93,154
5,183
3,370
2,814
5,636
7,087
15,318
395
620
256
1,172
707
16,983
1,435
519
71
1,311
1,044
16,283
1,027
603
694
1,137
2,029
Commerce and housing credit
Transportation
Community and regional d e v e l o p m e n t . . . .
Education, training, employment, social
services
29 Health 1
30 Income security 6
7,788
21,120
10,068
3,946
23,381
9,394
3,843
20,589
7.410
2,073
11,991
4,621
1,825
10,753
4,269
1,410
9,915
3,193
-385
1,836
675
-402
2,054
708
1,119
1,745
946
30,767
55,220
193,100
31,402
65,982
225,099
25,411
74,018
248,807
15,928
33,113
113,490
13,878
35,322
129,269
12,595
37,213
112,782
2,408
6,356
20,346
1,696
6.499
21,612
2,167
6,403
22,186
21,183
4,570
4,505
8,584
64,504
-21,933
22,988
23,973
4,648
4,833
6,161
100,777
-29,261
10.531
2,344
2,692
3.015
41,178
-12,432
12,880
2,290
2,311
3,043
47,667
-17.281
10,865
2,334
2,410
3.325
50,070
-14,680
997
427
630
38
8,871
-1,038
1,928
401
365
32
6.931
-1.785
1,945
368
146
1,558
7,672
-1,319
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 5
OUTLAYS
25
26
27
28
31
32
33
34
35
36
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Interest
Undistributed offsetting receipts 7
4,698
4,614
6,856
82,537
-30.320
1. The Budget of the U.S. Government, Fiscal Year 1983 has reclassified supplemental medical insurance premiums and voluntary hospital insurance premiums,
previously included in other social insurance receipts, as offsetting receipts in the
health function.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Federal employee retirement contributions and civil service retirement and
disability fund.
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
6. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was reclassified from an off-budget agency to an on-budget agency in the Department of
Labor.
7. Consists of interest received by trust funds, rents and royalties on the outer
continental shelf, and U.S. government contributions for employee retirement.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government" and the Budget of the U.S. Government, Fiscal Year 1983.
Federal Finance
1.40
A33
F E D E R A L D E B T SUBJECT TO S T A T U T O R Y LIMITATION
Billions of dollars
1980
1982
1981
Item
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
1 Federal debt outstanding
914.3
936.7
970.9
977.4
1,003.9
1,034.7
1,066.4
1,084.7
1,147.0
?. Public debt securities
3
Held by public
4
Held by agencies
907.7
710.0
197.7
930.2
737.7
192.5
964.5
773.7
190.9
971.2
771.3
199.9
997.9
789.8
208.1
1,028.7
825.5
203.2
1,061.3
858.9
202.4
1,079.6
867.9
211.7
1.142.0
925.6
216.4
6.6
5.1
1.5
6.5
5.0
1.5
6.4
4.9
1.5
6.2
4.7
1.5
6.1
4.6
1.5
6.0
4.6
1.4
5.1
3.9
1.2
5.0
3.9
1.1
5.0
3.7
1.3
5 Agency securities
6
Held by public
7
Held by agencies
908.7
931.2
965.5
972.2
998.8
1,029.7
1,062.2
1,080.5
1,142.9
9 Public debt securities
10 Other debt 1
907.1
1.6
929.6
1.6
963.9
1.6
970.6
1.6
997.2
1.6
1,028.1
1.6
1,060.7
1.5
1,079.0
1.5
1.141.4
1.5
11 MEMO: Statutory debt limit
925.0
935.1
985.0
985.0
999.8
1,079.8
1,079.8
1,143.1
1,143.1
8 Debt subject to statutory limit
1. Includes guaranteed debt of government agencies, specified participation certificates, notes to international lending organizations, and District of Columbia
stadium bonds.
1.41
GROSS PUBLIC D E B T OF U.S. T R E A S U R Y
NOTE. Data from Treasury Bulletin (U.S. Treasury Department),
Types and Ownership
Billions of dollars, end of period
1982
Type and holder
1978
1979
1980
1981
July
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
14
By type
Interest-bearing debt
Marketable
Bills
Notes
Bonds
Nonmarketable 1
State and local government series
Foreign issues 3
Government
Public
Savings bonds and notes
Government account series 4
Aug.
Sept.
845.1
930.2
1,028.7
1,089.6
1,109.2
1,142.0
1,142.8
1,161.7
782.4
487.5
161.7
265.8
60.0
294.8
2.2
24.3
29.6
28.0
1.6
80.9
157.5
844.0
530.7
172.6
283.4
74.7
313.2
2.2
24.6
28.8
23.6
5.3
79.9
177.5
928.9
623.2
216.1
321.6
85.4
305.7
1,027.3
720.3
245.0
375.3
99.9
307.0
1,083.3
774.1
262.0
411.1
101.0
309.2
1,108.1
801.4
273.1
457.4
100.9
306.7
1,140.9
824.4
277.9
442.9
103.6
316.5
1,136.8
824.7
283.9
438.1
102.7
312.2
1,160.5
852.5
293.5
454.2
104.7
308.0
23.8
24.0
17.6
6.4
72.5
185.1
23.0
19.0
14.9
4.1
68.1
196.7
23.4
16.6
13.6
3.1
67.4
201.5
23.5
15.6
12.5
3.1
67.4
119.9
23.6
14.6
12.2
2.4
67.5
210.5
23.8
14.6
12.2
2.4
67.8
205.7
25.0
14.9
12.5
2.4
)8.1
199.9
1.2
6.0
1.2
6.8
1.2
1.3
1.4
1.1
1.1
16
17
18
19
20
21
22
23
170.0
109.6
508.6
93.2
5.0
15.7
19.6
64.4
187.1
117.5
540.5
96.4
4.7
16.7
22.9
69.9
192.5
121.3
616.4
116.0
5.4
20.1
25.7
78.8
203.3
131.0
694.5
109.4
5.2
19.1
37.8
85.6
206.7
129.4
749.6
110.0
5.6
22.6
39.9
88.7
205.8
132.9
24
25
26
27
Individuals
Savings bonds
Other securities
Foreign and international 6
Other miscellaneous investors 7
80.7
30.3
137.8
58.9
79.9
36.2
124.4
90.1
72.5
56.7
127.7
106.9
68.0
75.6
141.4
152.3
67.4
79.0
143.3
193.1
1. Includes (not shown separately): Securities issued to the Rural Electrification
Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
2. These nonmarketable bonds, also known as Investment Series B Bonds, may
be exchanged (or converted) at the owner's option for l'/2 percent, 5-year marketable Treasury notes. Convertible bonds that have been so exchanged are removed from this category and recorded in the notes category (line 5).
3. Nonmarketable dollar-denominated and foreign currency-denominated series
held by foreigners.
4. Held almost entirely by U.S. government agencies and trust funds.
1.42
U.S. G O V E R N M E N T M A R K E T A B L E SECURITIES
ASeries discontinued.
Nov.
789.2
By holder5
U.S. government agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
Mutual savings banks
Insurance companies
Other companies
State and local governments
15 Non-interest-bearing debt
Oct.
n .a.
216.4
134.4
n a.
n a.
n a.
5. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.
6. Consists of investments of foreign balances and international accounts in the
United States.
7. Includes savings and loan associations, nonprofit institutions, corporate pension trust funds, dealers and brokers, certain government deposit accounts, and
government sponsored agencies.
NOTE. Gross public debt excludes guaranteed agency securities.
Data by type of security from Monthly Statement of the Public Debt of the United
States (U.S. Treasury Department); data by holder from Treasury Bulletin.
Ownership, by maturity^
A34
1.43
Domestic Financial Statistics • December 1982
U.S. G O V E R N M E N T SECURITIES D E A L E R S
Transactions
Par value; averages of daily figures, in millions of dollars
1982
Item
1980
1979
1982, week ending Wednesday
1981
Aug.
r
Sept. '
Oct.
Oct. 27
Nov. 3
Nov. 10
Nov. 17
Nov. 24
1
Immediate delivery 1
U.S. government securities
13,183
18,331
24.728
40.466
38,001
35,137
32,897
34,892
38,955
32,660
37,220
2
3
4
5
6
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
7,915
454
2,417
1,121
1,276
11,413
421
3.330
1,464
1,704
14.768
621
4.360
2,451
2.528
23.287
1,093
8.631
4,138
3.317
21,037
1,180
7,278
4,863
3,643
18,466
816
7,629
4,250
3,976
16,729
633
8,179
3,747
3,608
19,007
929
7,029
3,716
4,210
17,823
838
7,803
4,595
7,896
19,194
900
5,815
3,016
3,735
20,325
531
7,938
4,695
3,732
7
8
9
10
11
12
13
14
15
16
17
18
By type of customer
U.S. government securities
dealers
U.S. government securities
brokers
All others 2
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures transactions 3
Treasury bills
Treasury coupons
Federal agency securities
Forward transactions 4
U.S. government securities
Federal agency securities
1,448
1,484
1,640
1,980
1,849
1,614
1,939
1,879
2,156
2,190
2,236
5,170
6,564
2,723
1,764
7,610
9,237
3,258
2.472
11,750
11,337
3.306
4.477
1,807
6,128
19,792
18.695
4.972
5,381
2,787
7,685
17,937
18,215
4,644
4,542
2,376
7,669
17,298
16,225
5,827
5,273
3,065
7.342
15,804
15,153
5,634
4,061
2,708
6,270
16,096
16,917
5,815
5,290
3,247
8,550
17,864
18,935
5,282
3,689
2,577
7,202
16,651
14,819
5,035
4,929
2,723
7,523
17,699
17,286
5,056
5,877
3,278
7.692
3.523
1.330
234
6.404
1.572
331
5,600
1,678
262
4,499
1,922
332
4,048
1,863
337
4,213
1,864
224
3,957
2,242
186
5,575
1,618
269
4,946
1,912
148
365
1,370
1,027
815
1,752
985
760
1,132
1,125
1,197
865
1,133
1,318
1,228
1,105
1,143
1,590
557
n a.
n a.
1. Before 1981. data for immediate transactions include forward transactions.
2. Includes, among others, all other dealers and brokers in commodities and
securities, nondealer departments of commercial banks, foreign banking agencies,
and the Federal Reserve System.
3. Futures contracts are standardized agreements arranged on an organized exchange in which parties commit to purchase or sell securities for delivery at a future
date.
4. Forward transactions are agreements arranged in the over-the-counter market
in which securities are purchased (sold) for delivery after 5 business days from the
1.44
U.S. G O V E R N M E N T SECURITIES D E A L E R S
date of the transaction for government securities (Treasury bills, notes, and bonds)
or after 30 days for mortgage-backed agency issues.
NOTE. Averages for transactions are based on number of trading days in the
period.
Transactions are market purchases and sales of U.S. government securities dealers reporting to the Federal Reserve Bank of New York. The figures exclude
allotments of, and exchanges for, new U.S. government securities, redemptions of
called or matured securities, purchases or sales of securities under repurchase
agreement, reverse repurchase (resale), or similar contracts.
Positions and Financing
Averages of daily figures, in millions of dollars
1982
Item
1979
1980
Aug.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Net immediate 1
U.S. government securities
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures positions
Treasury bills
Treasury coupons
Federal agency securities
Forward positions
U.S. government securities
Federal agency securities
3,223
3,813
325
455
160
30
1,471
2.794
n. a.
4,306
4.103
-1.062
434
166
665
797
3.115
n. a.
1982, week ending Wednesday
1981
Sept. '
Oct.
Oct. 6
Oct. 13
Oct. 20
Oct. 27
9,033
6,485
-1,526
1,488
292
2.294
2,277
3,435
1,746
2,658
4,957
1,130
-632
2,645'
-266'
1,880'
3,556'
7,834
3,210
3,658
2,107
275
-534
1,423
-325
1,268
4,416
6,467
2,778
3,555
3,641
1,024
109
2,612
-691
587
5,241
6,109
3,283
3,965
1,879
85
-128
2,305
-701
317
5,073
6,282
2,823
4,244
3,595
772
41
2,622
-369
530
5,270
6,870
3.368
3.941
3,931
1,372
126
2,135
-488
786
4,787
6,480
3,393
4,083
4,611
1,271
275
3,409
-1,020
676
5,617
5,306
3,366
3,806
4,541
2,062
341
2,484
-900
554
5,856
5,281
3,488
3,752
-8,934
-2,733
522
6,200
-2,130'
-285
5,250
-1,282
-569
5,347
-1,141
-569
2,489
-552
-816
4,406
-998
-588
5,303
-1,281
-598
7,684
-1,385
-461
5,694
-1,803
-260
-654
-1,222
-2,117
-1,689
-565
-1,835
-749
-1,880
-306
-1,588
-318
-1,789
-805
-1,973
-732
- 2,042
-603
-451
Financing 2
Reverse repurchase agreementsOvernight and continuing . . .
Term agreements
Repurchase agreements 4
18
Overnight and continuing . . .
19
Term agreements
16
17
For notes see opposite page.
Nov. 3
14.568
32,048
29,374
50,497
30,477
49,870
29,581
50,483
30,451
47,767
28.874
49,792
29,951
52,184
29,049
52,187
35.919
29.449
50,318
48,692
45,342
50,617
51,250
43,963
43,919
47,612
55,129
40,607
53,410
43,744
52,544
43,887
Federal Finance
1.45
A35
F E D E R A L A N D F E D E R A L L Y S P O N S O R E D C R E D I T A G E N C I E S Debt Outstanding
Millions of dollars, end of period
1982
Agency
1
Federal and federally sponsored agencies 1
2 Federal agencies
.3
Defense Department 2
4
Export-Import Bank 3 4
5
Federal Housing Administration 5
6
Government National Mortgage Association
participation certificates 6
7
Postal Service 7
8
Tennessee Valley Authority
9
United States Railway Association 7
10
11
12
13
14
15
16
17
18
19
Federally sponsored agencies'
Federal H o m e Loan Banks
Federal H o m e Loan Mortgage Corporation
Federal National Mortgage Association
Federal Land Banks
Federal Intermediate Credit Banks
Banks for Cooperatives
Farm Credit Banks 1
Student Loan Marketing Association 8
Other
1980
1979
1978
Mar.
Apr.
May
June
July
Aug.
Sept.
n.a.
n.a.
137,063
163,290
193,229
228,749
232,274
234,593
238,787
242,565
23,488
968
8,711
588
24,715
738
9,191
537
28,606
610
11,250
477
31,408
454
13,421
382
31,613
447
13,475
376
31,551
434
13,416
363
32,274
419
13,939
358
32.302
408
13,938
353
32,280
399
13,918
345
32,606
388
14,042
335
3,141
2,364
7,460
356
2,979
1,837
8,997
436
2,817
1,770
11,190
492
2,165
1,538
13,250
198
2,165
1,538
13,410
202
2,165
1,471
13,500
202
2,165
1,471
13,715
207
2.165
1,471
13,760
207
2,165
1,471
13,775
207
2,165
1,471
14,010
195
113,575
27,563
2,262
41,080
20,360
11.469
4,843
5,081
915
2
138,575
33,330
2,771
48,486
16,006
2,676
584
33,216
1,505
1
164,623
41,258
2,536
55,185
12,365
1,821
584
48,153
2,720
1
197,341
58,839
2,500
59,270
8,717
1,388
220
61,405
5,000
2
200,661
59,937
2,500
60,478
8,217
926
220
63,381
5,000
2
203,042
60,772
2,500
61,996
8,217
926
220
63,409
5,000
2
206,513
61,883
3,099
62,660
8,217
926
220
64,506
5,000
2
210,263
62,058
3,099
65,563
7,652
926
220
65,743
5,000
2
n.a.
n.a.
n.a.
65,733
7,652
926
220
65,657
5,000
2
n.a.
n.a.
n.a.
68,130
7,652
926
220
65,553
5,000
2
51,298
67,383
87,460
113,567
114,961
117,475
120,241
121,261
122,623
124,357
6,898
2,114
915
5,635
356
8,353
1,587
1,505
7,272
436
10,654
1,520
2,720
9,465
492
13,305
1,288
5,000
11,525
198
13,305
1,288
5,000
11,685
202
13,305
1,221
5,000
11,775
202
13,829
1,221
5,000
11,990
207
13,829
1,221
5,000
12,035
207
13,823
1,221
5,000
12,050
207
13,954
1,221
5.000
12,285
195
23,825
4,604
6,951
32,050
6,484
9.696
39,431
9,196
13.982
48,681
14,452
19,118
49,356
14,716
19,409
51,056
15,046
19,870
52,346
15,454
20,194
52,711
15,688
20.570
53,311
15,916
21,095
53.736
16,282
21,684
MEMO:
20
Federal Financing Bank debt 1,9
21
22
23
24
25
Lending to federal and federally
sponsored
agencies
Export-Import Bank 4
Postal Service 7
Student Loan Marketing Association 8
Tennessee Valley Authority
United States Railway Association 7
26
27
28
Other
Lendingw
Farmers H o m e Administration
Rural Electrification Administration
Other
1. In September 1977 the Farm Credit Banks issued their first consolidated bonds,
and in January 1979 they began issuing these bonds on a regular basis to replace
the financing activities of the Federal Land Banks, the Federal Intermediate Credit
Banks, and the Banks for Cooperatives. Line 17 represents those consolidated
bonds outstanding, as well as any discount notes that have been issued. Lines 1
and 10 reflect the addition of this item.
2. Consists of mortgages assumed by the Defense Department between 1957 and
1963 under family housing and homeowners assistance programs.
3. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
4. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
5. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the securities market.
6. Certificates of participation issued prior to fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department
N O T E S T O T A B L E 1.44
1. Immediate positions are net amounts (in terms of par values) of securities
owned by nonbank dealer firms and dealer departments of commercial banks on
a commitment, that is, trade-date basis, including any such securities that have
been sold under agreements to repurchase (RPs). The maturities of some repurchase agreements are sufficiently long, however, to suggest that the securities
involved are not available for trading purposes. Securities owned, and hence dealer
positions, do not include securities to resell (reverse RPs). Before 1981, data for
immediate positions include forward positions.
2. Figures cover financing involving U.S. government and federal agency securities, negotiable CDs, bankers acceptances, and commercial paper.
of Housing and Urban Development; Small Business Administration; and the
Veterans Administration.
7. Off-budget.
8. Unlike other federally sponsored agencies, the Student Loan Marketing Association may borrow from the Federal Financing Bank (FFB) since its obligations
are guaranteed by the Department of Health, Education, and Welfare.
9. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since FFB incurs
debt solely for the purpose of lending to other agencies, its debt is not included in
the main portion of the table in order to avoid double counting.
10. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any particular agency being generally small. The Farmers H o m e Administration item consists
exclusively of agency assets, while the Rural Electrification Administration entry
contains both agency assets and guaranteed loans.
3. Includes all reverse repurchase agreements, including those that have been
arranged to make delivery on short sales and those for which the securities obtained
have been used as collateral on borrowings, i.e., matched agreements.
4. Includes both repurchase agreements undertaken to finance positions and
"matched book" repurchase agreements.
NOTE. Data for positions are averages of daily figures, in terms of par value,
based on the number of trading days in the period. Positions are shown net and
are on a commitment basis. Data for financing are based on Wednesday figures,
in terms of actual money borrowed or lent.
A36
1.46
Domestic Financial Statistics • December 1982
N E W SECURITY ISSUES of State and Local Governments
Millions of dollars
Type of issue or issuer,
or use
1982
1979
1980
1981
Mar.
1 All issues, new and refunding
1
Apr.
May'
June'
July'
Aug.'
Sept.
43,365
48,367
47,732
5,661
6,709
5,617
5,753
5,528
6,484
6,397
12,109
53
31,256
67
14,100
38
34,267
57
12,394
34
35,338
55
1,733
9
3,928
5
2,223
10
4,486
32
1,506
10
4,111
38
1,811
16
3,942
45
967
22
4,561
49
1,682
25
4,802
52
1,696
30
4,701
54
Type of issuer
6 State
7 Special district and statutory authority
8 Municipalities, counties, townships, school districts
4,314
23,434
15,617
5,304
26,972
16,090
5,288
27,499
14,945
432
2,993
2,236
1,061
3,880
1,768
601
2,973
2,043
1,074
2.839
1.840
257
3,696
1,575
835
3,641
2,008
1,071
3,372
1,954
9 Issues for new capital, total
41,505
46,736
46,530
4,798
6,682
5,487
5,663
5,342
6,051
6,198
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
5,130
2,441
8,594
15,968
3,836
5,536
4,572
2,621
8,149
19,958
3.974
7,462
4,547
3,447
10,037
12,729
7,651
8,119
405
363
754
1,773
636
867
460
284
1,333
2,339
667
1,599
483
293
1,363
2,021
353
974
724
244
830
2,292
397
1,176
288
117
1,272
2,735
493
437
511
767
685
2,488
717
883
833
542
280
2,475
1,030
1.038
2
3
4
5
10
11
12
13
14
15
Type of issue
General obligation
U.S. government loans 2
Revenue
U.S. government loans 2
1. Par amounts of long-term issues based on date of sale.
2. Consists of tax-exempt issues guaranteed by the Farmers H o m e Administration.
1.47
SOURCE. Public Securities Association.
N E W S E C U R I T Y ISSUES of Corporations
Millions of dollars
Type of issue or issuer,
or use
1982
1979
1980
1981
Mar.
Apr.
May
June
July'
Aug.'
Sept.
1 All issues1
51,533
73,694
69,992
6,655
4,819
7,106
4,546
6,162
8,757
7,748
2 Bonds
40,208
53,206
44,643
4,512
2,575
4,420
2,836
3,919
6,509
5,486
Type of offering
3 Public
4 Private placement
25.814
14.394
41,587
11,619
37,653
6,989
3,540
972
2,100
475
3,973
447
2,398
438
2,868
1,051
5,546
963
5,308
178
9,678
3,948
3,119
8,153
4,219
11,094
15,409
6,693
3,329
9,557
6,683
11,534
12,325
5,229
2,054
8,963
4,280
11,793
708
691
224
1,568
84
1,236
497
139
26
888
16
1.010
608
490
74
1,186
315
1,748
211
329
79
699
174
1,344
1,638
493
43
717
84
944
1,602
1,202
402
902
205
2,196
1,615
465
64
900
301
2,141
11,325
20,489
25,349
2,143
2,244
2,686
1,710
2,243
2,248
2,262
3,574
7.751
3,631
16,858
1,797
23,522
199
1,944
172
2,072
888
1,798
67
1,643
645
1,598
622
1,627
447
1,815
1,679
2,623
255
5,171
303
1,293
4,839
5,245
549
6,230
567
3,059
5,073
7,557
779
5,577
1,778
4,585
546
657
27
600
3
310
259
770
15
766
3
431
458
578
35
477
44
1,094
444
397
52
277
8
532
203
615
17
267
96
1,045
727
374
62
697
31
357
254
733
84
928
4
259
5
6
7
8
9
10
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
11 Stocks
Type
12 Preferred
13 Common
14
15
16
17
18
19
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures, which represent gross proceeds of issues maturing in more than one
year, sold for cash in the United States, are principal amount or number of units
multiplied by offering price. Excludes offerings of less than $100,000, secondary
offerings, undefined or exempted issues as defined in the Securities Act of
1933, employee stock plans, investment companies other than closed-end, intracorporate transactions, and sales to foreigners.
SOURCE. Securities and Exchange Commission.
Corporate Finance
1.48
O P E N - E N D I N V E S T M E N T COMPANIES
Millions of dollars
A37
Net Sales and Asset Position
1982
Item
1980
1981
Mar.
Apr.
May
June
July
Aug.
Sept.r
Oct.
INVESTMENT COMPANIES 1
1
2
3
Sales of own shares 2
Redemptions of own shares 3
Net sales
15,266
12,012
3,254
20,596
15,866
4,730
3,325
2,056
1,269
2,754
2,293
461
2,345
1,854
491
3,061
2,038
1,023
3,304
2,145
1,159
4,322
2,335
1,987
4,709
3,052
1,657
5,668
3,046
2,622
4
Assets 4
Cash position 5
Other
58,400
5,321
53,079
55,207
5,277
49,930
53,001
5,752
47,249
56,026
6,083
49,943
54,889
5,992
48,896
54,238
6,298
47,940
54,592
5,992
48,600
62,212
6,039
56,173
63,783
5,556
58,227
70,962
5,948
65,014
6
5. Also includes all U.S. government securities and other short-term debt securities.
1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment
of capital gains distributions and share issue of conversions f r o m one fund to another
in the same group.
3. Excludes share redemption resulting from conversions from one fund to another in the same group.
4. Market value at end of period, less current liabilities.
1.49
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.
C O R P O R A T E PROFITS A N D THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1981
Account
1979
1980
Q1
2
3
4
5
6
1
Corporate profits with inventory valuation and
capital consumption adjustment
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
7
8
Inventory valuation
Capital consumption adjustment
Q2
Q3
Q4
Q1
Q2
Q3p
194.8
252.7
87.6
165.1
52.7
112.4
181.6
242.4
84.6
157.8
58.1
99.7
190.6
232.1
81.2
150.9
65.1
85.8
200.3
253.1
91.5
161.6
61.5
100.1
185.1
225.4
79.2
146.2
64.0
82.2
193.1
233.3
82.4
150.9
66.8
84.1
183.9
216.5
71.6
144.9
68.1
76.8
157.1
171.6
56.7
114.9
68.8
46.1
155.4
171.7
55.3
116.4
69.3
47.0
165.9
179.9
60.8
119.1
70.5
48.5
-43.1
-14.8
-43.0
-17.8
-24.6
-16.8
-35.5
-17.3
-22.8
-17.5
-23.0
-17.1
-17.1
-15.5
-4.4
-10.1
-9.4
-6.9
-9.9
-4.0
SOURCE. Survey of Current Business (U.S. Department of Commerce).
1982
1981
A38
1.50
DomesticNonfinancialStatistics • December 1982
NONFINANCIAL CORPORATIONS
Current Assets and Liabilities
Billions of dollars, except for ratio
1981
Account
1976
1977
1979
1978
1982
1980
02
03
Q4
Q1
Q2
1 Current assets
827.4
912.7
1,043.7
1,218.2
1,333.5
1,388.3
1,410.9
1,427.1
1,423.6
1,419.4
2
3
4
5
6
88.2
23.5
292.9
342.5
80.3
97.2
18.2
330.3
376.9
90.1
105.5
17.3
388.0
431.6
101.3
118.0
17.0
461.1
505.5
116.7
127.1
19.3
510.6
543.7
132.7
126.2
19.9
533.1
565.3
143.8
125.1
18.0
542.4
577.0
148.3
131.7
17.9
536.7
587.1
153.6
121.3
17.1
537.8
593.8
153.6
123.4
17.4
534.4
589.2
155.0
7 Current liabilities
495.1
557.1
669.3
807.8
890.9
931.5
967.2
980.0
985.7
982.6
8 Notes and accounts payable
9 Other
282.1
213.0
317.6
239.6
382.9
286.4
461.2
346.6
515.2
375.7
525.9
405.5
549.5
417.7
562.9
417.1
555.0
430.8
554.9
427.8
332.4
355.5
374.4
410.5
442.6
456.8
443.7
447.1
437.9
436.8
1.671
1.638
1.559
1.508
1.497
1.490
1.459
1.456
1.444
1.445
Cash
U.S. government securities
Notes and accounts receivable
Inventories
Other
10 Net working capital
11 MEMO: Current ratio
1
1. Ratio of total current assets to total current liabilities.
All data in this table reflect the most current benchmarks. Complete data are
available upon request from the Flow of Funds Section, Division of Research and
Statistics.
NOTE. For a description of this series, see "Working Capital of Nonfinancial
Corporations" in the July 1978 BULLETIN, pp. 533-37.
SOURCE. Federal Trade Commission.
1.51
T O T A L N O N F A R M BUSINESS E X P E N D I T U R E S on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1981
Industry 1
1 Total nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5
Railroad
6
Air
7
Other
Public utilities
8
Electric
9
Gas and other
10 Trade and services
11 Communication and other 2
1980
1981
Q2
Q3
04
Q1
Q2
03
Q41
295.63
321.49
319.99
316.73
328.25
327.83
327.72
323.22
315.79
315.21
58.91
56.90
61.84
64.95
57.95
64.72
63.10
62.40
62.58
67.53
60.78
66.14
60.84
67.48
59.03
64.74
57.14
62.32
55.80
64.70
13.51
16.86
16.05
16.80
17.55
16.81
17.60
16.56
14.63
15.56
4.25
4.01
3.82
4.24
3.81
4.00
4.12
3.97
3.71
4.38
3.29
4.04
4.18
3.34
4.09
4.18
4.82
4.12
4.56
3.20
4.23
4.73
3.54
4.06
3.94
4.11
3.24
3.33
5.02
3.48
28.12
7.32
81.79
36.99
29.74
8.65
86.33
41.06
33.06
8.56
86.42
41.43
29.32
8.53
85.88
39.02
30.54
9.01
87.55
41.89
31.14
8.60
88.33
42.92
30.95
9.17
87.80
41.89
32.26
9.14
88.85
40.33
34.98
8.40
87.31
39.73
33.89
7.78
82.01
43.65
1. Anticipated by business.
2. " O t h e r " consists of construction; social services and membership organizations; and forestry, fisheries, and agricultural services.
1982
1982 1
SOURCE. Survey of Current Business (U.S. Dept. of Commerce).
Corporate Finance
1.52
D O M E S T I C F I N A N C E COMPANIES
Billions of dollars, end of period
Assets and Liabilities
1982
1981
Account
A39
1977
1978
1979
1980
Q3
Q2
Q4
Q2
Q1
Q3
ASSETS
1
2
3
4
5
6
7
8
Accounts receivable, gross
Consumer
Business
Total
LESS: Reserves for unearned income and l o s s e s . . . .
Accounts receivable, net
Cash and bank deposits
Securities
All other
9
Total assets
65.7
70.3
136.0
20.0
116.0
73.6
72.3
145.9
23.3
122.6
79.0
78.2
157.2
25.7
131.4
84.5
76.9
161.3
27.7
133.6
85.5
80.6
166.1
28.9
137.2
85.1
80.9
166.0
29.1
136.9
88.0
82.6
170.6
30.2
140.4
88.3
82.2
170.5
30.4
140.1
24.91
27.5
31.6
34.5
34.2
35.0
37.3
39.1
122.4
140.9
150.1
163.0
168.1
171.4
171.9
177.8
179.2
5.9
29.6
6.5
34.5
8.5
43.3
13.2
43.4
14.4
49.0
14.7
51.2
15.4
51.2
15.4
46.2
14.5
50.3
16.8
46.7
6.2
36.0
11.5
8.1
43.6
12.6
8.2
46.7
14.2
7.5
52.4
14.3
8.5
52.6
17.0
11.9
50.7
17.1
9.6
54.8
17.8
9.0
59.0
19.0
9.3
60.3
18.9
9.9
60.9
20.5
44.0
55.2
99.2
12.7
86.5
2.6
.9
14.3
52.6
63.3
116.0
15.6
100.4
3.5
1.3
17.3
104.3
I
J
LIABILITIES
Bank loans
Commercial paper
Debt
12
Short-term, n.e.c
13
Long-term, n.e.c
14
Other
10
11
15
Capital, surplus, and undivided profits
16
Total liabilities and capital
15.1
17.2
19.9
19.4
21.5
22.4
22.8
23.3
24.5
24.5
104.3
122.4
140.9
150.1
163.0
168.1
171.4
171.9
177.8
179.2
1. Beginning Q 1 1979, asset items on lines 6, 7, and 8 are combined.
NOTE. Components may not add to totals due to rounding.
1.53
D O M E S T I C F I N A N C E COMPANIES
Business Credit
Millions of dollars, seasonally adjusted except as noted
Type
Accounts
receivable
outstanding
Sept. 30,
19821
Changes in accounts
receivable
Extensions
Repayments
1982
1982
1982
July
Aug.
Sept.
July
Aug.
Sept.
July
Aug.
Sept.
1 Total
82,234
868
849
208
20,284
21,549
19,991
19,416
20,700
19,783
2
3
4
5
12,024
13,689
28,161
-118
1,035
-11
24
1,101
-114
-59
52
362
802
5,878
1,365
938
6,397
1,448
869
6,040
1,148
920
4,843
1,376
914
5,296
1,562
928
5,988
786
9,198
19,162
85
-123
-9
-153
-78
-69
10,571
1,668
11,163
1,603
10,279
1,655
10,486
1,791
11,172
1,756
10,357
1,724
Retail automotive (commercial vehicles)
Wholesale automotive
Retail paper on business, industrial, and farm e q u i p m e n t . . . .
Loans on commercial accounts receivable and factored commercial accounts receivable
6 All other business credit
1. Not seasonally adjusted.
A40
1.54
DomesticNonfinancialStatistics • December 1982
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1982
Item
1979
1980
1981
Apr.
May
June
July
Aug.
Sept.
Oct.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
6
Conventional mortgages on new homes
Terms1
Purchase price (thousands of dollars)
A m o u n t of loan (thousands of dollars)
Loan/price ratio (percent)
Maturity (years)
Fees and charges (percent of loan a m o u n t ) 2
Contract rate (percent per a n n u m )
Yield (percent per
7 F H L B B series 5
8 H U D series 4
74.4
53.3
73.9
28.5
1.66
10.48
83.4
59.2
73.2
28.2
2.09
12.25
90.4
65.3
74.8
27.7
2.67
14.16
95.7
70.4
77.2
28.6
3.28
15.13
86.4
64.8
77.4
25.9
3.16
15.11
89.4
66.2
77.0
27.4
3.00
14.74
98.4
73.1
77.3
28.4
3.15
15.01
91.4
66.5
74.1
26.4
2.87
15.05
95.0 R
71.6r
78.7
28. R
3.04r
14.34
98.7
73.9
77.7
28.3
2.83
14.03
10.77
11.15
12.65
13.95
14.74
16.52
15.84
16.65
15.89
16.50
15.40
16.75
15.70
16.50
15.68
15.40
14.98 r
15.05
14.67
13.95
10.92
10.22
13.44
12.55
16.31
15.29
16.31
15.40
16.19
15.30
16.73
15.84
16.29
15.56
14.61
14.51
14.03
13.57 r
12.99
12.83
11.17
11.77
14.11
14.43
16.70
16.64
16.66
16.27
16.33
16.22
16.73
16.85
15.78
15.78
15.36
13.92
annum)
SECONDARY MARKETS
Yield (percent per annum)
9 F H A mortgages ( H U D series) 5
10 G N M A securities 6
F N M A auctions 7
12
Conventional loans
Activity in secondary markets
FEDERAL NATIONAL M O R T G A G E ASSOCIATION
Mortgage holdings (end of
13 Total
14
1 H A VA-insured
15
Conventional
Mortgage transactions
16 Purchases
17 Sales
Mortgage
period)
(during
22
23
55,104
37,365
17,725
58,675
39,341
19,334
63,132
39,834
23,298
63,951
39,808
24,143
65,008
39,829
25,179
66,158
39,853
26,305
67,810
39,922
27,888
68,841
39,871
28,970
69,152
39,523
27,629
10,812
0
8,099
0
6,112
2
755
0
1,006
0
1,223
0
1,354
0
1,931
0
1,670
0
1,449
0
10,179
6,409
8,083
3,278
9,331
3,717
2,482
6,586
1,550
7,016
1,583
7,206
2,016
7,674
1,820
6,900
1,482
6,587
6,268
8,860.4
3,920.9
8,605.4
4,002.0
2,487.2
1,478.0
7.0
0.0
35.7
7.4
33.1
7.4
8.9
0.0
43.3
5.7
16.4
0.0
2.5
0.0
4,495.3
2,343.6
3,639.2
1,748.5
2,524.7
1,392.3
29.5
22.0
37.8
23.0
59.0
33.1
37.2
23.6
70.1
42.9
27.5
0.0
13.6
8.9
3,543
1,995
1,549
4,362
2,116
2,246
5,245
2,236
3,010
5,274
2,226
3,048
5,279
2,232
3,047
5,295
2,225
3,069
5,309
2,232
3,017
5,201
2,216
2,985
5,207
2,225
2,982
4,931
2,174
2,756
5,717
4,544
3,723
2,527
3,789
3,531
2,143
2,177
1,214
1,194
1,581
1,562
2,237
2,204
2,529
2,619
1,799
1,923
2,000
2,197
5,542
797
3,859
447
6,974
3,518
2,824
6,041
2,692
7,420
3,166
8,970
2,189
8,544
2,768
9,318
2,892
10,211
2,506
10,572
period)
commitments8
19 Outstanding (end of p e r i o d )
20
21
48.050
33,673
14,377
Auction of 4-month commitments
to buy
G o v e r n m e n t - u n d e r w r i t t e n loans
Offered
Accepted
Conventional loans
Offered
Accepted
FEDERAL H O M E LOAN M O R T G A G E CORPORATION
Mortgage holdings
24 Total
25
FHA/VA
26
Conventional
(end of
Mortgage transactions
27 Purchases
28 Sales
period)9
(during
Mortgage
commitments10
29 C o n t r a c t e d (during period)
30 O u t s t a n d i n g (end of p e r i o d )
period)
1. Weighted averages based on sample surveys of mortgages originated by m a j o r
institutional lender groups. C o m p i l e d by the Federal H o m e Loan Bank B o a r d in
cooperation with the Federal Deposit Insurance C o r p o r a t i o n .
2. Includes all fees, commissions, discounts, and " p o i n t s " paid (by the b o r r o w e r
or the seller) to obtain a loan.
3. A v e r a g e effective interest rates on loans closed, assuming p r e p a y m e n t at the
end of 10 years.
4. A v e r a g e contract rates on new c o m m i t m e n t s for conventional first mortgages,
r o u n d e d to the nearest 5 basis points; f r o m D e p a r t m e n t of Housing and U r b a n
Development.
5. A v e r a g e gross yields on 30-year, m i n i m u m - d o w n p a y m e n t , Federal Housing
Administration-insured first mortgages for immediate delivery in the private seco n d a r y m a r k e t . A n y gaps in d a t a are d u e to periods of a d j u s t m e n t to changes in
m a x i m u m permissible contract rates.
6. A v e r a g e net yields to investors on G o v e r n m e n t National Mortgage Association g u a r a n t e e d , mortgage-backed, fully modified pass-through securities.
assuming p r e p a y m e n t in 12 years on pools of 30-year F H A / V A mortgages carrying
the prevailing ceiling rate. Monthly figures are unweighted averages of M o n d a y
quotations for the month.
7. A v e r a g e gross yields (before deduction of 38 basis points for mortgage servicing) on accepted bids in Federal National Mortgage Association's auctions of
4-month commitments to purchase h o m e mortgages, assuming p r e p a y m e n t in 12
years for 30-year mortgages. N o a d j u s t m e n t s are made for F N M A c o m m i t m e n t
fees or stock related requirements. Monthly figures are unweighted averages for
auctions conducted within the m o n t h .
8. Includes some multifamily and nonprofit hospital loan c o m m i t m e n t s in addition to 1- to 4-family loan c o m m i t m e n t s accepted in F N M A ' s free m a r k e t auction
system, a n d through the F N M A - G N M A t a n d e m plans.
9. Includes participation as well as whole loans.
10. Includes conventional and government-underwritten loans.
Real Estate Debt
1.55
A41
MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
1982
1981
Type of holder, and type of property
1979
1980
1981
Q2
Q3
Q4
Q1
Q2
Q3
1,337,748
891.066
128,433
235,572
82,677
1,471,786
986,979
137,134
255,655
92,018
1,583,535
1,060,469
141,427
279,912
101,727
1,533,196
1,028,297
139,280
268,095
97,524
1,561,606
1,047,626
140,228
273,746
100,006
1,583,535
1,060,469
141,427
279,912
101,727
1,603,121
1,071,889
142,904
284,411
103,917
1,624,169
1,085,182
143,806
289,690
105,491
l,635,830 r
1,092,274'
144,654 r
292,180'
106,722'
6 Major financial institutions
7
Commercial banks 1
8
1- to 4-family
9
Multifamily
Commercial
10
11
Farm
12
Mutual savings banks
13
1- to 4-family
14
Multifamily
Commercial
IS
16
Farm
938,567
245,187
149,460
11,180
75,957
8,590
98,908
66,140
16,557
16,162
49
997,168
263,030
160,326
12,924
81,081
8,699
99,865
67,489
16,058
16,278
40
1,040,630
284,536
170,013
15,132
91,026
8,365
99,997
68,187
15,960
15,810
40
1,023,133
273,225
164,873
13,800
86,091
8,461
99,993
68,035
15,909
15,999
50
1,033,825
279,017
167,550
14,481
88,588
8,398
99,994
68,116
15,939
15,909
30
1,040,630
284,536
170,013
15,132
91,026
8,365
99,997
68,187
15,960
15,810
40
1,041,487
289,365
171,350
15,338
94,256
8,421
97,464
66,305
15,536
15,594
29
1,042,652
294,022
172,596
15,431
97,522
8,473
96,346
65,381
15,338
15,598
29
1,028,840
298,342
175,126
15,666
99,050
8,500
94,246
63.755
15,004
15,458'
29
17
18
19
20
Savings and loan associations
1- to 4-family
Multifamily
Commercial
475,688
394,345
37,579
43,764
503,192
419,763
38,142
45,287
518,350
432,978
37,684
47,688
515,256
430,702
38,077
46,477
518,778
433,750
37,975
47,053
518,350
432,978
37,684
47,688
515,896
430,928
37,506
47,462
512,745
428,194
36,866
47,685
495,408
413,096'
35,422'
46,890 r
21
22
23
24
25
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
118,784
16,193
19,274
71,137
12,180
131,081
17,943
19,514
80,666
12,958
137,747
17,201
19,283
88,163
13,100
134,659
17,549
19,495
84,571
13,044
136,036
17,376
19,441
86,070
13,149
137,747
17,201
19,283
88,163
13,100
138,762
17,086
19,199
89,529
12,948
139,539
16,451
18,982
91,113
12,993
140,844
16,579
19,130
92,125
13,010
97,084
3,852
763
3,089
114,300
4,642
704
3,938
126,112
4,765
693
4,072
119,124
4,972
698
4,274
121,772
4,382
696
3,686
126,112
4,765
693
4,072
128,721
4,438
689
3,749
132,188
4,669
688
3,981
136,836'
4,697
687
4,010
1 All holders
1- to 4-familv
3 Multifamilv
4 Commercial
5
?
26 Federal and related agencies
27
Government National Mortgage Association
28
1- to 4-family
29
Multifamily
30
31
32
33
34
Farmers H o m e Administration
1- to 4-family
Multifamily
Commercial
Farm
1,274
417
71
174
612
3,492
916
610
411
1,555
2,235
914
473
506
342
2,662
1,151
464
357
690
1,562
500
242
325
495
2,235
914
473
506
342
2,469
715
615
499
640
2,038
792
198
444
604
2,188
842
223
469
654
35
36
37
Federal Housing and Veterans
Administration
1- to 4-family
Multifamily
5,555
1,955
3,600
5,640
2,051
3,589
5,999
2,289
3,710
5,895
2,172
3,723
6,005
2,240
3,765
5,999
2,289
3,710
6,003
2,266
3,737
5,908
2,218
3,690
5,921
2,171
3,750
38
39
40
Federal National Mortgage Association
1- to 4-family
Multifamily
51,091
45,488
5,603
57,327
51,775
5,552
61,412
55,986
5,426
57,657
52,181
5,476
59,682
54,227
5,455
61,412
55,986
5,426
62,544
57,142
5,402
65,008
59,631
5,377
68,841
63,495
5.346
41
42
43
Federal Land Banks
1- to 4-family
Farm
31,277
1,552
29,725
38,131
2,099
36,032
46,446
2,788
43,658
42,681
2,401
40,280
44,708
2,605
42,103
46,446
2,788
43,658
47,947
2,874
45,073
49,270
2,954
46,316
49,983'
3,029'
46,954'
44
45
46
Federal H o m e Loan Mortgage Corporation .
1- to 4-family
Multifamily
4,035
3,059
976
5,068
3,873
1,195
5,255
4,018
1,237
5,257
4,025
1,232
5,433
4,166
1,267
5,255
4,018
1,237
5,320
4,075
1,245
5,295
4,042
1,253
5,206
3,944
1,262
47 Mortgage pools or trusts 2
48
Government National Mortgage Association
49
1- to 4-family
50
Multifamily
118,664
75,787
73,853
1,934
142,258
93,874
91,602
2,272
162,990
105,790
103,007
2,783
152,308
100,558
98,057
2,501
158,140
103,750
101,068
2,682
162,990
105,790
103,007
2,783
172,292
108,592
105,701
2,891
182,945
111,459
108,487
2,972
196,337
114,396
111,348
3,048
51
52
53
Federal H o m e Loan Mortgage Corporation .
1- to 4-family
Multifamily
15,180
12,149
3,031
16,854
13,471
3,383
20,560
16,605
3,955
17,565
14,115
3,450
17,936
14,401
3,535
20,560
16,605
3,955
26,745
21,781
4,964
33,249
27,193
6,056
43,254'
35,686'
7,568
54
55
56
57
58
59
60
Farmers H o m e Administration
1- to 4-family
Multifamily
Commercial
Farm
27,697
14,884
2,163
4,328
6,322
31,530
16,683
2,612
5,271
6,964
717
717
36,640
18,378
3,426
6,161
8,675
34,185
17,165
3,097
5,750
8,173
36,454
18,407
3,488
6,040
8,519
717
717
36,640
18,378
3,426
6,161
8,675
2,786
2,786
36,955
18,740
3,447
6,351
8,417
4,556
4,556
38,237'
19,056
4,026
6,574
8,581
8,133
8,133
38,687
19,256
4,076
6,624
8,731
183,433
110,808
23,376
24,050
25,199
218,060
138,284
27,345
26,661
25,770
253,803
167,412
28,286
30,558
27,547
238,631
155,173
27,782
28,850
26,826
247,869
162,524
28,272
29,761
27,312
253,803
167,412
28,286
30,558
27,547
260,621
172,237
29,275
30,720
28,389
61 Individual and others 4
62
1- to 4-family 5
63
Multifamily
64
Commercial
65
Farm
1. Includes loans held by nondeposit trust companies but not bank trust departments.
2. Outstanding principal balances of mortgages backing securities insured or
guaranteed by the agency indicated.
3. Outstanding balances on F N M A ' s issues of securities backed by pools of
conventional mortgages held in trust. The program was implemented by F N M A
in October 1981.
4. Other holders include mortgage companies, real estate investment trusts, state
and local credit agencies, state and local retirement funds, noninsured pension
funds, credit unions, and U.S. agencies for which amounts are small or for which
separate data are not readily available.
5. Includes a new estimate of residential mortgage credit provided by individuals.
266,384
177,499
29,636
30,754
28,495
273,817
183,260
30,149
31,564
28,844
NOTE. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve in conjunction with the
Federal Home Loan Bank Board and the Department of Commerce. Separation
of nonfarm mortgage debt by type of property, if not reported directly, and interpolations and extrapolations when required, are estimated mainly by the Federal
Reserve. Multifamily debt refers to loans on structures of five or more units.
A42
1.56
DomesticNonfinancialStatistics • December 1982
CONSUMER INSTALLMENT CREDIT 1 Total Outstanding, and Net Change
Millions of dollars
1982
1979
1980
Apr.
May
June
July
Aug.
Sept.
Oct.
Amounts outstanding (end of period)
312,024
313,472
333,375
328,363
329,338
331,851
332,471
333,808
335,948
334,871
154,177
68,318
46,517
28,119
8,424
3,729
2,740
147,013
76,756
44,041
28,448
9,911
4,468
2,835
149,300
89,818
45,954
29,551
11,598
4,403
2,751
146,616
90,674
45,450
26,537
12,081
4,227
2,778
146,147
91,958
45,472
26,536
12,202
4,218
2,805
146,775
93,009
45,882
26,645
12,312
4,398
2,830
146,745
93,353
45,698
26,710
12,520
4,600
2,845
147,275
93,207
46,154
26,751
12,833
4,714
2,874
148,280
93,357
46,846
26,829
13,051
4,669
2,916
147,926
92,541
46,645
27,046
13,457
4,322
2,934
By major type of credit
9 Automobile
10
Commercial banks
11
Indirect paper
12
Direct loans
13
Credit unions
14
Finance companies
116,362
67,367
38,338
29,029
22,244
26,751
116,838
61,536
35,233
26,303
21,060
34,242
126,431
59,181
35,097
24,084
21,975
45,275
126,201
58,458
34,920
23,538
21,733
46,010
127,220
58,099
34,791
23,308
21,744
47,377
128,415
58,140
34,903
23,237
21,940
48,335
128,359
58,131
34,979
23,152
21,852
48,376
128,281
58,222
34,996
23,226
22,071
47,988
129,085
58,762
35,449
23,313
22,402
47,921
128,619
58,796
35,490
23,306
22,306
47,518
15 Revolving
16
Commercial banks
17
Retailers
18
Gasoline companies
56,937
29,862
23,346
3,729
58,352
29,765
24,119
4,468
63,049
33,110
25,536
4,403
58,641
31,638
22,776
4,227
58,647
31,619
22,810
4,218
59,302
31,974
22,930
4,398
59,824
32,205
23,019
4,600
60,475
32,691
23,070
4,714
60,932
33,104
23,159
4,669
60,811
33,085
23,404
4,322
19 Mobile home
20
Commercial banks
21
Finance companies
22
Savings and loans
23
Credit unions
16,838
10,647
3,390
2,307
494
17,322
10,371
3,745
2,737
469
18,486
10,300
4,494
3,203
489
18,402
9,974
4,608
3,336
484
18,479
9,960
4,666
3,369
484
18,543
9,924
4,731
3,400
488
18,601
9,857
4,801
3,458
486
18,741
9,790
4,916
3,544
491
18,778
9,723
4,953
3,604
498
18,814
9,631
4,971
3,716
496
121,887
46,301
38,177
23,779
4,773
6,117
2,740
120,960
45,341
38,769
22,512
4,329
7,174
2,835
125,409
46,709
40,049
23,490
4,015
8,395
2,751
125,119
46,546
40,056
23,233
3,761
8,745
2,778
124,992
46,469
39,915
23,244
3,726
8,833
2,805
125,591
46,737
39,943
23,454
3,715
8,912
2,830
125,687
46,552
40,176
23,360
3,691
9,063
2,845
126,311
46,572
40,303
23,592
3,681
9,289
2,874
127,153
46,691
40,483
23,946
3,670
9,447
2,916
126,627
46,414
40,052
23,844
3,642
9,741
2,934
1 Total
2
3
4
5
6
7
8
By major holder
Commercial banks
Finance companies
Credit unions
Retailers 2
Savings and loans
Gasoline companies
Mutual savings banks
24 Other
25
Commercial banks
26
Finance companies
27
Credit unions
28
Retailers
29
Savings and loans
30
Mutual savings banks
Net change (during period) 3
38,381
1,448
18,161
14,020
2,185
2,132
1,327
509
47
-7,163
8,438
-2,475
329
1,485
739
95
By major type of credit
39 Automobile
40
Commercial banks
41
Indirect paper
42
Direct loans
43
Credit unions
44
Finance companies
14,715
6,857
4,488
2,369
1,044
6,814
45 Revolving
46
Commercial banks
47
Retailers
48
Gasoline companies
49 Mobile home
50
Commercial banks
51
Finance companies
52
Savings and loans
53
Credit unions
31 Total
32
33
34
35
36
37
38
By major holder
Commercial banks
Finance companies
Credit unions
Retailers 2
Savings and loans
Gasoline companies
Mutual savings banks
54 Other
55
Commercial banks
56
Finance companies
57
Credit unions
58
Retailers
59
Savings and loans
60
Mutual savings banks
19,894
1,175
1,399
1,349
570
66
1,092
-324
2,284
1,913
1,103
1,682
-65
-85
96
544
132
181
205
-6
23
-13
1,126
-39
68
221
-20
56
-100
874
38
304
187
38
8
-66
195
-69
297
196
14
-252
-142
179
-109
268
65
57
481
115
346
60
181
-115
24
-49
-393
-32
-88
328
-115
25
477
-5,830
-3,104
-2,726
-1,184
7,491
9,595
-2,355
-136
-2,219
914
11,033
233
-159
2
-161
54
338
959
-305
-52
-253
-34
1,298
655
-240
-52
-188
28
867
61
101
225
-124
-26
-14
-402
-146
-129
-17
65
-321
505
435
332
103
159
-89
-78
52
72
-20
-12
-118
8,628
5,521
2,598
509
1,415
-97
773
739
4,697
3,345
1,417
-65
499
285
220
-6
537
436
121
-20
507
219
250
38
612
266
343
3
143
162
-84
65
210
243
82
-115
108
246
-23
-115
1,603
1,102
238
240
23
483
-276
355
430
-25
1,161
-74
749
466
20
51
-48
53
43
3
70
-41
44
67
0
67
-58
64
60
1
63
-57
73
47
0
141
-62
108
94
1
10
-67
20
54
3
-4
-97
-7
100
0
13,435
4,681
6,968
1,118
-466
1,087
47
-927
-960
592
-1,266
-444
1,056
95
4,441
1,368
1,280
975
-314
1,217
-85
392
18
153
75
-39
162
23
-167
-103
-216
-5
-53
154
56
120
-21
-57
9
54
127
8
-166
-376
136
-43
-46
149
14
184
-206
71
113
-25
174
57
367
-130
184
184
-22
127
24
-350
-250
-268
-20
-65
228
25
13,062
1. The Board's series cover most short- and intermediate-term credit extended
to individuals through regular business channels, usually t o finance the purchase
of consumer goods and services or to refinance debts incurred for such purposes,
and scheduled to be repaid (or with the option of repayment) in two or more
installments.
2. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
3
3. Net change equals extensions minus liquidations (repayments, charge-offs and
other credit); figures for all months are seasonally adjusted.
NOTE: Total consumer noninstallment credit outstanding—credit scheduled to
be repaid in a lump sum, including single-payment loans, charge accounts, and
service credit—amounted to, not seasonally adjusted $71.3 billion at the end of
1979, $74.8 billion at the end of 1980, and $80.2 billion at the end of 1981.
Consumer Debt
1.57
A43
C O N S U M E R I N S T A L L M E N T C R E D I T Extensions and Liquidations
Millions of dollars; monthly data are seasonally adjusted.
1982
HnlHpr anH fvnp nf rrpHit
1979
1980
1981
Apr.
May
June
July
Aug.
Sept.
Oct.
Extensions
324,777
306,076
336,341
28,648
29,197
29,737
27,514
27,579
28,268
28,062
154,733
61,518
34,926
47,676
5,901
18,005
2,018
134,960
60,801
29,594
49,942
6,621
22,253
1,905
146,186
66,344
35,444
53,430
8,142
24,902
1,893
12,790
5,343
3,010
4,618
823
1,915
185
12,765
6,135
2,902
4,449
841
1,880
225
13,460
5,700
2,887
4,762
785
1,969
174
12,485
4,607
2,711
4,785
803
1,944
179
12,499
4,685
2,904
4,396
863
2,021
211
12,750
4,894
3,092
4,684
786
1,876
186
13,322
4.427
2,897
4,431
961
1,835
189
By major type of credit
y Automobile
10
Commercial banks
11
Indirect paper
12
Direct loans
Credit unions
13
14
Finance companies
93,901
53,554
29,623
23,931
17,397
22,950
83,454
41,109
22,558
18,551
15,294
27,051
94,404
42,792
24,941
17,851
18,084
33,527
7,871
3,499
2,079
1,420
1,542
2,830
8,429
3,317
1,954
1,363
1,483
3,629
8,182
3,404
2,036
1,368
1,497
3,281
7,332
3,687
2,324
1,363
1,389
2,256
7,112
3,454
1,957
1,497
1,499
2,159
7,546
3,702
2,077
1,625
1,579
2,265
7,970
4,296
2,785
1,511
1,514
2,160
15 Revolving
Commercial banks
16
17
Retailers
Gasoline companies
18
120,174
61,048
41,121
18,005
128,068
61,593
44,222
22,253
140,135
67,370
47,863
24,902
12,416
6,309
4,192
1,915
12,528
6,604
4,044
1,880
13,361
7,141
4,251
1,969
12,551
6,237
4,370
1,944
12,497
6,512
3,964
2,021
12,464
6,336
4,252
1,876
12,340
6,455
4,050
1,835
6,471
4,542
797
948
184
5,093
2,937
898
1,146
113
6,028
3,106
1,313
1,432
176
544
253
122
151
18
478
201
114
151
12
459
180
129
137
13
441
173
133
123
12
581
194
193
181
13
452
191
105
140
16
476
174
81
207
14
104,231
35,589
37,771
17,345
6,555
4,953
2,018
89,461
29,321
32,852
14,187
5,720
5,476
1,905
95,774
32,918
31,504
17,182
5,567
6,710
1,893
7,853
2,729
2,391
1,450
426
672
185
7,762
2,643
2,392
1,407
405
690
225
7,735
2,735
2,290
1,377
511
648
174
7,190
2,388
2,218
1,310
415
680
179
7,389
2,339
2,333
1,392
432
682
211
7,806
2,521
2,524
1,497
432
646
186
7,276
2,397
2,186
1,369
381
754
189
1 Total
2
3
4
5
6
7
8
By major holder
Commercial banks
Finance companies
Credit unions
Retailers 1
Savings and loans
Gasoline companies
Mutual savings banks
19 Mobile home
Commercial banks
20
21
Finance companies
22
Savings and loans
Credit unions
23
24 Other
Commercial banks
25
26
Finance companies
27
Credit unions
28
Retailers
29
Savings and loans
Mutual savings banks
30
Liquidations
286,396
304,628
316,447
27,509
27,798
28,388
26,944
27,513
27,176
28,386
136,572
47,498
32,741
45,544
4,574
17,496
1,971
142,123
52,363
32,069
49,613
5,136
21,514
1,810
143,902
53,282
33,531
52,327
6,640
24,967
1,978
12,694
4,799
2,878
4,437
618
1,921
162
12,778
5,009
2,941
4,381
620
1,900
169
13,560
4,826
2,849
4,458
598
1,931
166
12,551
4,412
2,780
4,488
607
1,941
165
12,751
4,827
2,725
4,505
595
1,956
154
12,269
4,779
2,746
4,624
605
1,991
162
13,371
4,820
2,929
4,519
633
1,950
164
By major type of credit
39 Automobile
40
Commercial banks
41
Indirect paper
42
Direct loans
43
Credit unions
44
Finance companies
79,186
46,697
25,135
21,562
16,353
16,136
82,977
46,939
25,662
21,277
16,478
19,560
84,809
45,147
25,077
20.070
17,169
22,494
7,638
3,658
2,077
1,581
1,488
2,492
7,470
3,622
2,006
1,616
1,517
2,331
7,527
3,644
2,088
1,556
1,469
2,414
7,271
3,586
2,099
1,487
1,415
2,270
7,514
3,600
2,086
1,514
1,434
2,480
7,041
3,267
1,745
1,522
1,420
2,354
8,048
4,244
2,713
1,531
1,526
2,278
45 Revolving
Commercial banks
46
47
Retailers
48
Gasoline companies
111,546
55,527
38,523
17,496
126,653
61,690
43,449
21,514
135,438
64,025
46,446
24,967
11,917
6,024
3,972
1,921
11,991
6,168
3,923
1,900
12,854
6,922
4,001
1,931
11,939
5,971
4,027
1,941
12,354
6,350
4,048
1,956
12,254
6,093
4,170
1,991
12,232
6,209
4,073
1,950
4,868
3,440
559
708
161
4,610
3,213
543
716
138
4,867
3,180
564
966
156
493
301
69
108
15
408
242
70
84
12
392
238
65
77
12
378
230
60
76
12
440
256
85
87
12
442
258
85
86
13
480
271
88
107
14
90,796
30,908
30,803
16,227
7,021
3,866
1,971
90,388
30,281
32,260
15,453
6,164
4,420
1,810
91,333
31,550
30,224
16,207
5,881
5,493
1,978
7,461
2,711
2,238
1,375
465
510
162
7,929
2,746
2,608
1,412
458
536
169
7,615
2,756
2,347
1,368
457
521
166
7,356
2,764
2,082
1,353
461
531
165
7,205
2,545
2,262
1,279
457
508
154
7,439
2,651
2,340
1,313
454
519
162
7,626
2,647
2,454
1,389
446
526
164
31 Total
32
33
34
35
36
37
38
By major holder
Commercial banks
Finance companies
Credit unions
Retailers 1
Savings and loans
Gasoline companies
Mutual savings banks
49 Mobile home
50
Commercial banks
Finance companies
51
52
Savings and loans
Credit unions
53
54 Other
55
Commercial banks
56
Finance companies
57
Credit unions
58
Retailers
59
Savings and loans
60
Mutual savings banks
1. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
A44
1.58
DomesticNonfinancialStatistics • December 1982
F U N D S R A I S E D IN U . S . C R E D I T M A R K E T S
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1979
Transaction category, sector
1976
1977
1978
1979
1980
1980
1982
1981
1981
H2
HI
H2
HI
H2
HI
Nonfinancial sectors
1 Total funds raised
2 Excluding equities
By sector and instrument
3 U.S. government
4
Treasury securities
5
Agency issues and mortgages
6 All other nonfinancial sectors
7
Corporate equities
8
Debt instruments
9
Private domestic nonfinancial sectors
10
Corporate equities
11
Debt instruments
12
Debt capital instruments
13
State and local obligations
14
Corporate bonds
273.5
262.7
334.3
331.2
401.7
402.3
402.0
409.1
397.1
382.2
406.9
418.4
406.6
411.0
363.0
354.2
431.2
410.2
438.2
436.7
375.7
400.2
380.6
381.0
69.0
69.1
-.1
204.5
10.8
193.6
184.9
10.5
174.3
123.6
15.7
22.8
56.8
57.6
-.9
277.5
3.1
274.4
263.6
2.7
260.9
169.8
21.9
21.0
53.7
55.1
-1.4
348.0
-.6
348.7
314.8
-.1
314.9
198.7
28.4
20.1
37.4
38.8
-1.4
364.7
-7.1
371.7
343.6
-7.8
351.5
216.0
29.8
22.5
79.2
79.8
-.6
317.9
15.0
303.0
288.7
12.9
275.8
204.1
35.9
33.2
87.4
87.8
-.5
319.6
-11.5
331.0
292.3
-11.5
303.7
175.0
32.9
23.9
46.1
46.6
-.5
360.5
-4.3
364.9
332.2
-6.1
338.3
213.1
32.8
22.6
63.3
63.9
-.6
299.8
8.9
290.9
268.8
6.9
261.9
203.8
30.7
37.3
95.1
95.7
-.6
336.1
21.0
315.0
308.5
18.8
289.7
204.4
41.0
29.0
81.9
82.4
-.5
356.3
1.6
354.8
321.7
.9
320.8
196.5
35.1
24.7
92.9
93.2
-.4
282.8
-24.5
307.3
262.9
-23.8
286.7
153.5
30.6
23.0
98.1
98.6
-.5
282.6
-.4
282.9
266.5
-.1
266.7
156.7
47.9
18.5
15
16
17
18
19
20
21
22
23
Home mortgages
Multifamily residential
Commercial
Farm
Other debt instruments
Consumer credit
Bank loans n.e.c
O p e n market paper
Other
63.9
3.9
11.6
5.7
50.7
25.4
4.4
4.0
16.9
94.3
7.1
18.4
7.1
91.1
40.2
26.7
2.9
21.3
112.1
9.2
21.7
7.2
116.2
48.8
37.1
5.2
25.1
120.1
7.8
23.9
11.8
135.5
45.4
49.2
11.1
29.7
96.7
8.8
20.2
9.3
71.7
4.9
35.4
6.6
24.9
78.6
4.6
25.3
9.8
128.8
25.3
51.1
19.2
33.1
113.9
6.9
25.4
11.5
125.2
41.0
39.6
17.4
27.2
96.5
8.1
20.3
10.9
58.1
-3.3
18.0
20.3
23.0
96.9
9.5
20.1
7.8
85.4
13.0
52.7
-7.1
26.7
95.2
5.1
27.4
9.0
124.3
29.4
47.7
10.7
36.5
62.0
4.1
23.2
10.5
133.2
21.2
54.6
27.6
29.8
59.5
5.1
20.3
5.4
110.0
16.0
78.2
3.4
12.4
24
25
26
27
28
29
By borrowing sector
State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
184.9
15.2
89.5
10.2
15.4
54.5
263.6
15.4
137.3
12.3
28.3
70.4
314,8
19,1
169.3
14.6
32.4
79.3
343.6
20.2
176.5
21.4
34.4
91.2
288.7
27.3
117.5
14.4
33.8
95.7
292.3
22.3
120.4
16.4
40.5
92.6
332.2
22.5
165.8
22,7
37.0
84.2
268.8
21.8
115.2
15.7
27.5
88.6
308.5
32.8
119.8
13.0
40.2
102.7
321.7
25.1
141.0
19.9
41.8
93.9
262.9
19.5
99.9
12.8
39.3
91.4
266.5
36.3
89.7
8.4
30.4
101.8
19.6
.3
19.3
8.6
5.6
1.9
3.3
13.9
.4
13.5
5.1
3.1
2.4
3.0
33.2
-.5
33.8
4.2
19.1
6.6
3.9
21.0
.8
20.2
3.9
2.3
11.2
2.9
29.3
2.1
27.2
.8
11.5
10.1
4.7
27.3
28.3
1.7
26.6
4.9
2.6
16.3
2.8
31.0
1.9
29.0
2.0
5.9
15.7
5.4
27.5
2.2
25.3
-.4
17.2
4.5
4.0
34.6
.7
34.0
3.3
5.0
20.6
5.0
19.9
-.7
20.6
7.6
2.3
7.1
3.6
16.0
-.2
16.2
2.2
-.6
11.3
3.3
30
31
32
33
34
35
36
Foreign
Corporate equities
D e b t instruments
Bonds
Bank loans n.e.c
Open market paper
U.S. government loans
*
27.3
5.5
3.7
13.9
4.3
Financial sectors
37 Total funds raised
38
39
40
41
42
43
44
45
46
47
48
49
By instrument
U.S. government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. government
Private financial sectors
Corporate equities
D e b t instruments
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper and RPs
Loans from Federal H o m e Loan Banks
By sector
50 Sponsored credit agencies
51 Mortgage pools
52 Private financial sectors
53
Commercial banks
54
Bank affiliates
55
Savings and loan associations
56
Other insurance companies
57
Finance companies
58
REITs
Open-end investment companies
59
22.5
52.2
77.5
83.9
68.5
89.3
78.7
65.1
71.9
95.5
83.0
107.9
14.3
2.5
12.2
-.4
8.2
-.2
8.4
9.8
2.1
-3.7
2.2
-2.0
21.9
7.0
16.1
-1.2
30.3
3.4
26.9
10.1
3.1
-.3
9.6
4.3
36.7
23.1
13.6
47.3
24.3
23.1
43.6
24.4
19.2
45.1
30.1
15.0
50.8
25.8
25.0
47.3
27.1
20.2
39.8
21.7
18.1
42.5
26.9
15.6
47.8
33.3
14.5
57.9
21.4
36.5
40.8
2.5
38.3
7.5
.9
2.8
14.6
12.5
36.6
3.2
33.4
7.8
-1.2
-.4
18.0
9.2
24.9
7.2
17.7
7.1
-.9
-.4
4.8
7.1
44.1
8.6
35.6
-.8
-2.9
2.2
20.9
16.2
27.9
2.6
25.3
7.7
-2.9
.5
10.8
9.2
17.7
7.5
10.3
9.9
-5.3
.1
-.1
5.8
32.0
6.9
25.2
4.4
3.5
-.9
9.7
8.5
53.0
9.7
43.4
-2.1
-2.3
3.7
24.8
19.3
35.3
7.5
27.8
.4
-3.5
.7
17.0
13.2
50.0
16.0
34.0
-3.6
1.9
5.9
16.1
13.8
2.1
12.2
8.2
2.3
5.4
.1
.9
4.3
-2.2
-2.4
5.8
16.1
30.3
1.1
2.0
9.9
1.4
16.9
-1.9
.9
23.1
13.6
40.8
1.3
7.2
14.3
.8
18.1
-.9
-.1
24.3
23.1
36.6
1.6
6.5
11.4
.9
16.6
-.3
.1
24.4
19.2
24.9
.5
6.9
6.6
1.1
6.3
-1.5
5.0
30.1
15.0
44.1
.4
8.3
13.1
1.1
14.1
-.5
7.7
25.8
25.0
27.9
1.8
4.9
10.2
.9
11.0
-.1
-.8
27.1
20.2
17.7
.8
5.8
.1
1.0
6.0
-1.4
5.5
21.7
18.1
32.0
.3
8.0
13.2
1.1
6.5
-1.7
4.5
26.9
15.6
53.0
.2
6.9
19.2
1.1
17.3
-.6
8.9
33.3
14.5
35.3
.5
9.7
6.9
1.1
11.0
-.3
6.5
21.4
36.5
50.0
.6
9.7
16.8
1.0
7.7
-.2
14.5
—
—
—
—
—
—
—
—
—
—
All sectors
60 Total funds raised, by instrument
296.0
386.5
479.2
485.9
465.6
496.2
485.3
428.1
503.1
533.7
458.7
488.6
61 Investment company shares
62 Other corporate equities
63 Debt instruments
64
U.S. government securities
65
State and local obligations
66
Corporate and foreign bonds
67
Mortgages
68
Consumer credit
69
Bank loans n.e.c
70
Open market paper and RPs
71
Other loans
-2.4
13.1
285.4
83.8
15.7
41.2
87.1
25.4
6.2
8.1
17.8
.9
5.6
379.9
79.9
21.9
36.1
129.9
40.2
29.5
15.0
27.4
-.1
1.9
477.4
90.5
28.4
31.8
151.0
48.8
59.0
26.4
41.5
.1
-3.9
489.7
84.8
29.8
34.2
162.4
45.4
51.0
40.3
41.8
5.0
17.1
443.5
122.9
35.9
41.1
134.0
4.9
46.5
21.6
36.6
7.7
-10.6
499.1
132.6
32.9
28.5
115.2
25.3
57.0
54.0
53.7
-.8
-.9
487.1
97.0
32.8
35.2
154.7
41.0
42.7
44.5
39.2
5.5
10.8
411.8
110.7
30.7
49.3
130.4
-3.3
24.0
35.9
34.1
4.5
23.4
475.2
135.1
41.0
33.0
137.7
13.0
69.0
7.2
39.2
8.9
2.3
522.5
124.5
35.1
26.0
134.3
29.4
56.4
56.2
60.7
6.5
-23.5
475.7
140.7
30.6
30.9
96.2
21.2
57.6
51.8
46.6
14.5
1.2
472.9
156.1
47.9
17.0
92.1
16.0
83.6
30.9
29.4
Flow of Funds
1.59
A45
D I R E C T A N D I N D I R E C T S O U R C E S O F F U N D S TO C R E D I T M A R K E T S
Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates
1979
Transaction category, or sector
1 Total funds advanced in credit markets to nonfinancial sectors
1977
1976
1978
1979
1980
1982
1981
1980
1981
H2
HI
H2
HI
H2
HIr
262.7
331.2
402.3
409.1
382.2
418.4
411.0
354.2
410.2
436.7
400.2
381.0
49.8
23.1
12.3
-2.0
16.4
79.2
34.9
20.0
4.3
20.1
101.9
36.1
25.7
12.5
27.6
74.6
-6.3
35.8
9.2
35.9
95.8
15.7
31.7
7.1
41.3
95.9
17.2
23.4
16.2
39.1
101.0
16.6
36.7
9.2
38.6
104.6
20.5
34.9
5.8
43.4
87.0
10.9
28.5
8.5
39.1
98.7
15.9
21.4
19.3
42.1
93.2
18.5
25.5
13.2
36.0
91.9
-.8
47.4
13,8
31.5
7.9
16.8
9.8
15.2
14.3
10.0
22.4
7,1
39.6
21.9
17.1
39.9
7.0
38.0
36.7
19.0
52.4
7.7
-4.6
47.3
23.7
44.4
4.5
23.2
43.6
24.2
46.0
9.2
16.6
45.1
18.7
56.9
14.0
11.3
50.8
24.6
45.2
14.9
19.9
47.3
22.8
43.7
-5.9
26.5
39.8
27.1
44.3
-3.7
30.9
42.5
21.2
47.7
22.1
2.2
47.8
15.4
59.0
-6.5
23.9
57.9
227.1
60.7
15.7
30.5
55.4
62.9
-2.0
273.9
45.1
21.9
22.2
81.4
107.6
4.3
337.1
54.3
28.4
22.4
95.5
149.1
12.5
381.8
91.1
29.8
23.7
92.0
154.3
9.2
329.9
107.2
35.9
25.8
73.7
94.4
7.1
367.6
115.4
32.9
20.6
59.7
155.3
16.2
360.8
80.5
32.8
24.1
84.0
148.7
9.2
296.9
90.2
30.7
31.6
69.6
80.6
5.8
362.9
124.2
41.0
20.1
77.8
108.3
8.5
380.5
108.5
35.1
18.6
78.8
158.7
19.3
354.7
122.3
30.6
22.7
40.5
151.8
13.2
347.0
156.9
47.9
4.5
17.0
134.5
13.8
190.9
59.6
70.2
49.7
11.4
261.7
87.6
81.6
69.0
23.5
302.9
128.7
73.6
75.0
25.6
292.2
121.1
55.5
66.4
49.2
257.9
99.7
54.1
74.4
29.8
301.3
103.5
24.6
75.8
97.4
260.7
108.1
48.9
60.1
43.6
245.4
64.7
34.9
84.3
61.5
270.4
134.8
73.2
64.4
-1.9
326.3
107.8
43.9
75.8
98.8
276.3
99.2
5.3
75.8
95.9
281.3
122.3
30.2
89.0
39.7
190.9
124.4
8.4
58.0
-4.7
-.1
34.3
28.5
261.7
138.9
26.9
96.0
1.2
4.3
51.4
39.1
302.9
141.1
38.3
123.5
6.3
6.8
62.2
48.3
292.2
142.5
33.4
116.4
25.6
.4
49.1
41.3
257.9
167.8
17.7
72.4
-23.0
-2.6
65.4
32.6
301.3
211.2
35.6
54.6
-8.8
-1.1
70.8
-6.4
260.7
145.9
25.3
89.5
3.4
-.7
43.8
43.0
245.4
162.5
10.3
72.7
-20.0
-6.1
70.3
28.6
270.4
173.1
25.2
72.1
-26.0
1.0
60.5
36.6
326.3
212.0
43.4
70.9
-.7
6.0
66.0
-.4
276.3
210.3
27.8
38.2
-16.8
-8.2
75.6
-12.3
281.3
177.5
34.0
69.8
-31.1
-4.1
77.4
27.6
44.7
15.9
3.3
11.8
1.9
11.8
39.0
24.6
-.8
-5.1
9.6
10.7
72.5
36.3
3.6
-2.9
15.6
19.9
122.9
61.4
9.4
10.2
12.1
29.8
89.7
38.3
12.6
9.3
-3.4
32.9
101.9
50.4
20.3
-7.9
3.5
35.6
125.4
54.9
11.5
16.9
14.6
27.6
61.7
23.3
6.2
7.8
-8.1
32.5
117.7
53.3
18.9
10.8
1.4
33.3
97.5
43.0
22.8
-9.2
-1.4
42.3
106.2
57.7
17.8
-6.6
8.4
29.0
99.8
54.8
35.7
-22.9
7.9
24.2
133.4
7.3
10.4
123.7
-12.0
2.3
1.7
148.5
8.3
17.2
93.5
.2
25.8
2.2
1.3
152.3
9.3
16.3
63.7
6.9
46.6
7.5
2.0
151.9
7.9
19.2
61.0
34.4
21.2
6.6
1.5
179.2
10.3
4.2
79.5
29.2
48.3
6.5
1.1
221.0
9.5
18.3
46.6
107.5
36.3
2.5
.3
149.9
6.3
22.5
50.7
38.6
39.4
-5.3
-2.3
172.4
9.3
-2.5
73.4
61.9
24.4
5.3
.6
186.1
11.3
11.0
85.7
-3.4
72.1
7.8
1.7
218.6
5.8
26.5
26.9
104.1
46.8
7.7
.8
223.4
13.2
10.1
66.3
110.8
25.7
-2.6
-.2
177.5
2.0
6.9
78.8
39.4
51.4
1.0
-2.0
178.1
187.5
224.9
274.8
269.0
322.8
275.3
234.1
303.8
316.1
329.6
277.2
19.0
84.0
10.5
23.9
95.6
40.8
25.3
89.9
44.3
18.2
76.5
21.0
25.1
78.2
.2
22.9
82.0
7.8
24.6
72.3
14.8
29.5
82.7
*
21.2
74.5
.5
22.6
85.8
30.3
23.3
77.9
-14.6
24.1
81.0
-7.2
MEMO: Corporate equities not included above
50 Total net issues
Mutual fund shares
51
52
Other equities
10.6
-2.4
13.1
6.5
.9
5.6
1.9
-.1
1.9
-3.8
.1
-3.9
22.1
5.0
17.1
-2.9
7.7
-10.6
-1.7
-.8
-.9
16.3
5.5
10.8
27.9
4.5
23.4
11.2
8.9
2.3
-17.0
6.5
-23.5
15.7
14.5
1.2
53 Acquisitions by financial institutions
54 Other net purchases
12.5
-1.9
7.4
-.8
4.6
-2.7
10.4
-14.2
14.6
7.5
22.9
-25.8
14.2
-15.9
8.6
7.7
20.7
7.2
25.3
-14.1
20.5
-37.5
20.7
-5.1
2
3
4
5
6
7
8
9
10
11
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
F H L B advances to savings and loans
Other loans and securities
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
Agency borrowing not included in line 1
Private domestic funds
advanced
12 Total net advances
13
U.S. government securities
14
State and local obligations
15
Corporate and foreign bonds
16
Residential mortgages
17
Other mortgages and loans
18
LESS: Federal H o m e Loan Bank advances
Private financial
intermediation
19 Credit market funds advanced by private financial institutions
20
Commercial banking
21
Savings institutions
22
Insurance and pension funds
Other finance
23
24 Sources of funds
Private domestic deposits
25
26
Credit market borrowing
27
Other sources
28
Foreign funds
29
Treasury balances
30
Insurance and pension reserves
31
Other, net
Private domestic nonfinancial
investors
32 Direct lending in credit markets
33
U.S. government securities
34
State and local obligations
35
Corporate and foreign bonds
36
Commercial paper
37
Other
38 Deposits and currency
39
Currency
40
Checkable deposits
41
Small time and savings accounts
42
Money market fund shares
43
Large time deposits
44
Security RPs
4b
Foreign deposits
46 Total of credit market instruments, deposits and
currency
47
48
49
Public support rate (in percent)
Private financial intermediation (in percent). . .
Total foreign funds
*
N O T E S BY LINE N U M B E R .
1.
2.
6.
11.
12.
17.
25.
26.
28.
29.
30.
Line 2 of table 1.58.
Sum of lines 3 - 6 or 7-10.
Includes farm and commercial mortgages.
Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities.
Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. Also sum
of lines 27, 32, and 38 less lines 39 and 45.
Includes farm and commercial mortgages.
Line 38 less lines 39 and 45.
Excludes equity issues and investment company shares. Includes line 18.
Foreign deposits at commercial banks, bank borrowings from foreign branches,
and liabilities of foreign banking agencies to foreign affiliates.
D e m a n d deposits at commercial banks.
Excludes net investment of these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 12 less line 19 plus line 26.
33-37. Lines 13-17 less amounts acquired by private finance. Line 37 includes
mortgages.
39. Mainly an offset to line 9.
46. Lines 32 plus 38, or line 12 less line 27 plus 39 and 45.
47. Line 2/line 1.
48. Line 19/line 12.
49. Sum of lines 10 and 28.
50. 52. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types quarterly, and annually
for flows and for 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.
A46
2.10
Domestic Nonfinancial Statistics • December 1982
N O N F I N A N C I A L BUSINESS ACTIVITY Selected Measures
1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1982
Measure
1979
1980
1981
Mar.
1 Industrial production 1
2
3
4
5
6
7
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
Industry
groupings
8 Manufacturing
Apr.
May
June
July
Sept. r
Aug/
Oct.?
Nov.
152.5
147.0
151.0
141.7
140.2
139.2
138.7
138.8
138.4
137.3
136.2
135.6
150.0
147.2
150.8
142.2
160.5
156.4
146.7
145.3
145.4
145.2
151.9
147.6
150.6
149.5
147.9
151.5
154.4
151.6
143.7
143.3
141.5
145.9
145.2
138.5
142.9
142.6
142.1
143.4
143.7
136.2
142.3
142.2
143.6
140.4
142.6
134.3
142.1
142.1
144.8
138.4
141.9
133.5
142.6
142.5
145.8
138.0
142.8
133.0
142.0
141.2
144.1
137.3
144.7
132.8
140.6
139.8
143.3
135.0
143.4
132.2
139.4
138.6
142.3
133.6
142.1
131.2
138.9
138.1
141.6
133.4
141.8
130.4
153.6
146.7
150.4
140.1
138.7
137.9
137.7
138.1
138.0
137.1
135.6
134.9
85.7
87.4
79.1
80.0
78.5
79.9
71.6
71.8
70.8
70.5
70.2
69.4
70.0
68.8
70.0
68.5
69.8
68.2
69.2
67.8
68.3
67.2
67.8
66.7
1 2
Capacity utilization (percent) '
Manufacturing
9
10
Industrial materials industries
11 Construction contracts (1977 = 100) 3
121.0
106.0
107.0
105.0
88.0
94.0
111.0
98.0
112.0
117.0
n.a.
n.a.
12
13
14
15
16
17
18
19
20
21
Nonagricultural employment, total 4
Goods-producing, total
Manufacturing, total
Manufacturing, production-worker
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable personal income 5
Retail sales"
136.5
113.5
108.2
105.3
149.1
309.7
289.8
249.0
301.2
281.6
137.4
110.3
104.3
99.4
152.6
342.9
317.6
264.3
332.9
303.8
138.5
110.2
103.7
98.5
155.0
383.5
349.9
288.1
370.3
330.6
137.2
104.9
99.3
92.1
155.0
399.8
361.3
286.4
387.7
333.5
136.9
104.2
98.6
91.2
154.8
402.5
362.2
286.3
391.7
337.4
137.0
104.1
98.3
90.9
155.1
405.7
365.4
288.1
392.9
347.1
136.5
102.9
97.3
89.8
154.9
407.3
366.0
288.4
393.4
336.4
136.1
102.3
96.7
89.2
154.6
411.2
367.6
287.7
400.6
341.8
135.7
101.5
96.0
88.4
154.5
412.0
367.8
286.4
400.9
338.2
135.7
101.0
95.5
87.8
154.7
413.0
367.6
284.3
402.0
341.3
135.1
99.7
94.2
86.2
154.5
416.0
368.1
281.1
404.0
343.3
134.8
99.0
93.5
85.4
154.4
n.a.
n.a.
n.a.
405.5
351.2
22
23
Prices 7
Consumer
Producer finished goods
217.4
217.7
246.8
247.0
272.4
269.8
283.1
277.3
284.3
277.3
287.1
277.8
290.6
279.9
292.2
281.7
292.8
282.4
293.3
281.4
294.1
284.1
n.a.
n.a.
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.
1. T h e industrial production and capacity utilization series have been revised
back to January 1979.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, and D e p a r t m e n t of Commerce.
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 A r m e d Forces.
5. Based on data in Survey of Current Business (U.S. Department of Commerce).
2.11
NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5, and
6, and indexes for series mentioned in notes 3 and 7 may also be found in the
Survey of Current Business.
Figures for industrial production for the last two months are preliminary and
estimated, respectively.
O U T P U T , CAPACITY, A N D C A P A C I T Y UTILIZATION
Seasonally adjusted
1981
Q4
1982
Q1
Q2
1981
Q3
Output (1967 = 100)
Q4
1982
Q1
Q2
1981
Q3
Capacity (percent of 1967 output)
1982
Q4
Q1
Q2
Q3
Utilization rate (percent)
1 Manufacturing
2 Primary processing
3 Advanced processing
145.0
143.5
145.8
139.8
137.1
141.6
138.1
132.3
141.2
137.7
132.5
140.5
193.9
197.5
192.0
195.2
198.6
193.5
196.4
199.5
194.9
197.7
200.4
196.2
74.8
72.7
75.9
71.6
69.1
73.2
70.3
66.3
72.5
69.7
66.1
71.6
4 Materials
144.0
138.7
134.7
132.7
191.5
192.6
193.7
194.6
75.2
72.0
69.6
68.2
140.2
99.5
164.5
169.4
106.8
147.0
206.2
127.9
130.9
90.9
161.0
164.5
101.3
146.1
200.0
129.8
127.1
77.0
156.8 j
160.5/
101.8
142.0
194.0
125.5
124.8
73.0
155.0
158.2
102.2
145.6
188.3
124.0
195.3
142.1
213.1
223.9
141.6
162.8
284.4
155.8
196.4
142.3
214.6
225.6
142.1
163.8
287.3
156.5
197.3
142.4
216.1
227.3
142.4
164.6
289.6
157.0
198.3
142.3
217.4
228.8
142.8
165.4
291.9
157.6
71.8
70.1
77.2
75.7
75.4
90.3
72.5
82.1
66.7
63.9
75.0
72.9
71.3
89.2
69.6
82.9
64.4
54.1
72.6
70.6
71.5
86.3
67.0
79.9
63.0
51.3
71.3
69.2
71.5
88.0
64.5
78.7
5 Durable goods
6
Metal materials
7 Nondurable goods
8
Textile, paper, and chemical
9
Textile
10
Paper
11
Chemical
12 Energy materials
Labor Market
2.11
A47
Continued
Previous cycle 1
Latest cycle 2
1982
1981
Series
High
Low
High
Low
Nov.
Mar.
Apr.
May
June
July
Aug.r
Oct.
Sept.'
Nov.
Capacity utilization rate (percent)
13 Manufacturing
88.0
69.0
87.2
74.9
74.8
71.6
70.8
70.2
70.0
70.0
69.8
69.2
68.3
67.8
14
15
93.8
85.5
68.2
69.4
90.1
86.2
71.0
77.2
72.7
75.8
68.6
73.2
67.2
72.6
66.1
72.5
65.7
72.3
65.7
72.3
66.1
71.7
66.5
70.7
65.9
69.6
65.4
69.1
16 Materials
17
Durable goods
Metal materials
18
92.6
91.5
98.3
69.4
63.6
68.6
88.8
88.4
96.0
73.8
68.2
59.6
75.5
72.2
70.8
71.8
66.4
61.1
70.5
65.0
56.2
69.4
64.2
53.9
68.8
64.0
52.2
68.5
63.7
50.7
68.2
63.1
51.2
67.8
62.1
51.9
67.2
60.6
50.4
66.7
59.8
n.a.
19
20
94.5
67.2
91.6
77.5
77.3
75.3
74.4
72.5
70.9
70.2
71.0
72.7
72.8
72.5
21
22
23
Nondurable goods
Textile, paper, and
chemical
Textile
Paper
Chemical
95.1
92.6
99.4
95.5
65.3
57.9
72.4
64.2
92.2
90.6
97.7
91.3
75.3
80.9
89.3
70.7
75.9
75.5
92.3
72.4
73.7
73.5
89.4
70.2
72.5
73.4
87.4
69.0
70.6
71.5
86.1
66.9
68.8
69.6
85.3
65.0
68.0
69.8
86.0
63.7
68.9
72.3
88.6
63.6
70.5
72.6
89.3
65.9
70.9
74.3
89.7
66.0
70.7
n.a.
n.a.
n.a.
24
Energy materials
94.6
84.8
88.3
82.7
82.2
81.8
80.2
79.9
79.8
80.0
79.0
77.0
77.9
77.3
Primary processing
Advanced p r o c e s s i n g . . . .
1. Monthly high 1973; monthly low 1975.
2.12
2. Preliminary; monthly highs December 1978 through January 1980; monthly
lows July 1980 through October 1980.
L A B O R F O R C E , EMPLOYMENT, A N D U N E M P L O Y M E N T
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1982
Category
1979
1980
1981
May
June
July
Aug.
Sept.r
Oct.r
Nov.''
HOUSEHOLD SURVEY D A T A
1 Noninstitutional population 1
2
3
4
5
6
7
8
Labor force (including A r m e d Forces) 1 . . .
Civilian labor force
Employment
Nonagricultural industries 2
Agriculture
Unemployment
Number
Rate (percent of civilian labor force) .
Not in labor force
166,951
169,847
172,272
174,201
174,363
174,544
174,707
174,888
175,069
175,238
107,050
104,962
109,042
106,940
110,812
108,670
112,841
110,666
112,364
110,191
112,702
110,522
112,840
110,644
113,178
110,980
112,832
110,644
113,199
111,019
95,477
3,347
95,938
3,364
97,030
3,368
96,629
3,488
96,406
3,357
96,272
3,460
96,404
3,435
96,352
3,368
95,667
3,426
95,563
3,470
6,137
5.8
59,901
7,637
7.1
60,805
8,273
7.6
61,460
10,549
9.5
61,360
10,427
9.5
61,999
10,790
9.8
61,842
10,805
9.8
61,867
11,260
10.1
61,710
11,551
10.4
62,237
11,987
10.8
62,039
89,823
90,406
91,105
90,166
89,839
89,535
89,312
89,267
88,878
88,715
21,040
958
4,463
5,136
20,192
4,975
17,112
15,947
20,285
1,020
4,399
5,143
20,386
5,168
17.901
16,249
20,173
1,104
4,307
5,152
20,736
5,330
18,598
16,056
19,115
1,152
3,988
5,101
20,652
5,342
18,963
15,853
18,930
1,124
3,940
5,078
20,595
5,352
18,988
15,832
18,813
1,100
3,927
5,044
20,615
5,359
19,042
15,635
18,672
1,086
3,899
5,025
20,550
5,360
19,048
15,672
18,572
1,075
3,883
5,031
20,492
5,367
19,084
15,763
18,323
1,065
3,854
5,009
20,437
5,358
19,087
15,745
18,185
1,051
3,850
5,009
20,388
5,364
19,127
15,741
ESTABLISHMENT S U R V E Y D A T A
9 Nonagricultural payroll employment 3
10
11
12
13
14
15
16
17
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
1. Persons 16 years of age and over. Monthly figures, which are based on sample
data, relate to the calendar week that contains the 12th day; annual data are
averages of monthly figures. By definition, seasonality does not exist in population
figures. Based on data f r o m 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 A r m e d Forces. Data are adjusted to the March 1979
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A48
2.13
Domestic Nonfinancial Statistics • December 1982
INDUSTRIAL PRODUCTION
Indexes and Gross Value
Monthly data are seasonally adjusted.
Grouping
1967
proportion
1981
1981
averNov.
1982
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept.
Oct .P
Nov/
Index (1967 = 100)
MAJOR MARKET
100.00
151.0
146.3
143.4
140.7
142.9
141.7
140.2
139.2
138.7
138.8
138.4
137.3
136.2
135.6
60.71
47.82
27.68
20.14
12.89
39.29
150.6
149.5
147.9
151.8
154.4
151.6
147.5
147.2
144.0
151.5
148.7
144.6
146.2
146.3
142.0
152.1
145.9
139.0
142.9
142.8
139.6
147.2
143.4
137.2
144.6
144.1
141.8
147.3
146.3
140.4
143.7
143.3
141.5
145.9
145.2
138.5
142.9
142.6
142.1
143.4
143.7
136.2
142.3
142.2
143.6
140.4
142.6
134.3
142.1
142.1
144.8
138.4
141.9
133.5
142.6
142.5
145.8
138.0
142.8
133.0
142.0
141.2
144.1
137.3
144.7
132.8
140.6
139.8
143.3
135.0
143.4
132.2
139.4
138.6
142.3
133.6
142.1
131.2
138.9
138.1
141.6
133.4
141.8
130.4
Consumer goods
8 Durable consumer goods
9
Automotive products
10
Autos and utility vehicles
11
Autos
12
A u t o parts and allied g o o d s . . .
13
H o m e goods
14
Appliances, A/C, and T V . . . .
15
Appliances and T V
16
Carpeting and furniture
17
Miscellaneous h o m e g o o d s . . . .
7.89
2.83
2.03
1.90
80
5.06
1.40
1.33
1.07
2.59
140.5
137.9
103.4
205.6
142.0
119.6
121.2
158.0
147.4
129.7
121.7
88.9
81.1
205.0
134.1
107.7
108.7
146.9
143.2
123.2
119.2
87.5
78.1
199.7
125.4
85.7
86.6
144.4
139.1
120.1
109.2
71.6
61.3
204.4
126.3
100.6
101.6
137.9
135.4
125.9
117.5
82.0
70.5
207.8
130.6
103.5
104.1
147.8
138.1
128.1
125.0
93.6
79.8
204.5
129.9
97.0
97.4
151.3
138.9
130.7
129.9
100.5
87.2
204.6
131.1
102.7
103.1
151.8
138.0
132.6
138.9
111.8
96.1
207.6
129.1
100.5
101.5
145.9
137.7
134.6
143.0
117.1
101.9
208.6
129.9
106.4
108.8
149.0
134.9
137.3
149.7
127.7
114.6
205.4
130.4
102.7
106.1
151.4
136.7
132.9
135.5
107.1
93.3
207.6
131.4
104.5
108.6
152.5
137.2
131.3
135.5
105.8
94.3
210.7
128.9
99.4
104.1
153.3
134.9
127.0
123.0
89.6
79.5
207.8
129.2
106.0
110.3
151.8
132.5
126.0
120.9
87.2
77.7
206.3
128.8
106.6
18 Nondurable consumer goods
19
Clothing
20
Consumer staples
21
Consumer foods and tobacco .
22
Nonfood staples
23
Consumer chemical products
24
Consumer paper products . .
25
Consumer energy products .
26
Residential utilities
19.79
4.29
15.50
8.33
7.17
2.63
1.92
2.62
1.45
150.9
119.8
159.5
150.3
170.0
223.1
127.9
147.7
166.3
149.7
116.1
159.0
150.4
169.1
220.3
125.7
149.4
167.4
149.5
113.8
159.4
150.9
169.3
220.1
127.2
149.1
167.5
147.4
148.1
146.8
146.6
147.9
148.8
149.1
148.6
148.1
148.3
147.8
158.9
150.0
169.1
220.1
127.0
148.9
172.3
159.2
151.1
168.7
218.2
130.2
147.2
171.6
158.1
149.6
168.0
217.8
127.8
147.6
170.4
158.3
148.1
170,0
218.3
128.7
151.9
174.5
159.0
149.9
169.5
216.6
126.7
153.6
173.7
159.9
150.9
170.4
219.8
126.7
152.8
171.1
159.7
149.9
171.2
222.3
128.1
151.4
167.7
159.4
149.6
170.8
222.4
129.4
149.3
169.7
158.7
148.5
170.5
220.7
128.2
151.2
169.5
Equipment
27 Business
28
Industrial
29
Building and mining
30
Manufacturing
31
Power
12.63
6.77
1.44
3.85
1.47
181.1
166.4
286.2
127.9
149.7
179.0
165.1
293.8
123.6
147.1
179.0
164.0
294.6
122.0
145.5
172.2
158.1
289.0
116.9
137.4
171.6
155.9
274.9
116.8
141.1
169.0
151.2
256.9
116.3
139.0
164.9
145.9
242.2
114.0
134.8
159.9
138.9
224.4
109.7
131.5
156.7
134.0
209.0
107.5
129.9
154.9
131.3
200.4
106.0
129.6
153.9
128.4
190.8
104.4
130.1
5.86
3.26
1.93
.67
198.0
258.7
125.4
112.0
195.0
260.6
116.6
101.7
196.3
262.9
117.5
98.9
188.5
256.1
109.0
88.4
189.9
256.4
110.4
95.1
189.5
257.8
110.5
84.9
186.9
253.1
110.9
83.5
184.1
247.7
110.9
85.8
183.0
247.5
108.3
84.1
182.2
248.8
106.3
76.9
36 Defense and space
7.51
102.7
105.3
107.0
105.2
106.5
107.0
107.2
107.7
107.6
Intermediate
products
37 Construction supplies
38 Business supplies
39
Commercial energy products
6.42
6.47
1.14
141.9
166.7
176.4
130.1
167.1
177.0
127.0
164.6
177.3
124.2
162.4
181.7
127.5
165.1
184.1
125.6
164.6
184.5
123.6
163.7
183.5
122.2
162.8
180.3
20.35
4.58
5.44
10.34
5.57
149.1
114.5
191.2
142.3
112.0
141.0
102.8
188.7
132.9
101.6
134.0
92.9
183.3
126.1
94.8
129.7
86.9
177.2
123.6
94.5
132.4
92.2
180.1
125.1
94.3
130.7
94.1
177.5
122.2
88.6
128.1
94.7
173.9
118.8
82.3
126.6
98.9
170.0
116.1
79.4
10.47
174.6
164.7
158.3
156.8
164.2
162.0
160.3
156.6
153.5
7.62
1.85
1.62
4.15
1.70
1.14
181.4
113.0
150.6
224.0
169.3
137.4
169.9
106.9
150.2
205.8
163.5
131.9
161.9
102.0
141.2
196.8
161.9
128.6
159.1
97.3
143.2
193.0
162.4
132.4
167.9
102.2
148.5
204.9
166.7
136.0
166.6
104.5
146.7
202.2
161.3
132.4
164.4
104.5
143.5
199.3
159.8
134.2
160.4
101.8
141.8
193.9
157.2
130.6
156.7
99.1
140.7
188.7
158.5
124.8
4.65
3.82
129.0
115.0
145.9
128.1
115.6
143.4
127.4
115.9
141.4
130.9
119.2
145.1
130.3
119.5
143.4
128.2
119.2
139.1
125.8
117.3
136.1
125.4
116.9
135.7
125.4
116.6
136.0
131.8
137.4
156.4
129.0
125.9
137.2
157.8
128.1
120.1
136.7
157.7
127.4
117.0
139.5
158.8
130.9
120.1
138.9
158.4
130.3
118.9
137.6
158.8
128.2
118.9
136.7
161.5
125.8
119.5
136.5
161.7
125.4
120.2
136.2
160.5
125.4
1 Total index
2 Products
3
Final products
4
Consumer goods
5
Equipment
6
Intermediate products
7 Materials
32
33
34
35
Commercial transit, farm
Commercial
Transit
Farm
Materials
40 Durable goods materials
41
Durable consumer parts
42
Equipment parts
43
Durable materials n.e.c
44
Basic metal materials
45 Nondurable goods materials
46
Textile, paper, and chemical
materials
47
Textile materials
48
Paper materials
49
Chemical materials
50
Containers, nondurable
51
Nondurable materials n.e.c
52 Energy materials
53
Primary energy
54
Converted fuel materials
Supplementary
groups
55 H o m e goods and clothing
56 Energy, total
57
Products
58
Materials
9.35
12.23
3.76
111.2
131.5
159.6'
158.4
170.3
220.1
126.4
152.5
169.6
150.2
123.8
182.1
101.6
124.7
146.9
119.0
164.0
100.6
122.8
146.1
118.5
168.0
99.0
121.1
183.3
253.5
102.0
75.8
180.6
251.9
96.5
76.1
179.3
251.2
93.1
77.6
177.8
250.0
91.0
109.5
109.5
109.5
111.2
112.1
123.1
160.6
178.3
124.1
161.4
179.8
127.1
162.1
178.1
125.4
161.4
179.2
124.2
159.9
179.4
124.1
126.6
103.1
168.3
115.1
77.4
126.0
103.8
166.1
114.8
75.7
125.1
101.0
164.1
115.4
76.1
123.2
97.9
158.3
116.0
77.7
120.4
93.0
156.0
113.9
75.6
119.2
91.5
154.5
112.9
152.3
154.5
158.3
158.8
158.8
155.3
99.6
142.1
185.4
158.1
123.4
157.7
103.2
146.6
186.5
162.8
120.1
161.7
103.7
148.0
193.0
168.3
120.9
162.9
106.3
148.9
193.6
165.7
121.4
162.9
126.0
117.2
136.7
124.5
113.8
137.4
121.6
111.3
134.0
123.1
114.5
133.7
122.3
121.4
136.4
160.0
126.0
121.3
134.8
158.0
124.5
120.2
133.3
159.7
121.6
120.3
134.7
160.7
123.1
120.0
133.4
122.3
Output
2.13
A49
Continued
Grouping
SIC
code
1967
proportion
1982
1981
1981
avg.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.'
Sept.
Oct.'
Nov
140.3
Index (1967 = 100)
M A J O R INDUSTRY
1 Mining and utilities .
2
Mining
3
Utilities
4
Electric
5 Manufacturing
6
Nondurable
7
Durable
8
9
10
11
Mining
Metal
Coal
Oil and gas extraction . . .
Stone and earth minerals.
12
13
14
15
16
Nondurable
manufactures
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
17
18
19
20
21
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products .
Leather and products
10
11.12
13
14
12.05
6.36
5.69
3.88
87.95
35.97
51.98
155.0
142.2
169.1
190.9
150.4
164.8
140.5
155.4
143.3
168.9
190.9
145.0
160.3
134.4
154.7
142.6
168.2
190.2
142.0
157.4
131.3
157.4
144.5
171.8
195.2
138.5
155.1
127.1
155.6
142.4
170.4
192.5
140.9
157.8
129.3
153.1
138.1
170.0
191.7
140.1
157.3
128.2
151.6
134.1
171.0
193.1
138.7
156.1
126.7
148.8
128.9
170.9
193.4
137.9
155.0
126.1
145.2
123.5
169.4
191.6
137.7
155.3
125.5
142.6
120.1
167.7
189.2
138.1
155.7
125.9
141.3
116.9
168.5
189.9
138.0
156.9
124.9
139.8
115.0
167.6
188.3
137.1
156.9
123.4
141.0
116.6
168.2
189.6
135.6
156.3
121.3
.51
.69
4.40
.75
123.1
141.3
146.8
129.4
115.4
160.8
148.4
116.7
110.9
145.5
150.5
115.7
121.3
147.9
151.5
115.8
120.8
156.0
146.6
120.5
109.9
155.6
141.4
121.6
108.8
146.2
137.7
119.6
90.0
149.2
132.7
114.6
71.8
144.4
129.1
106.6
58.1
140.3
127.0
103.8
53.4
135.8
123.3
105.7
55.3
127.9
121.4
106.3
69.1
143.2
119.3
108.6
134.3
119.7
8.75
.67
2.68
3.31
3.21
152.1
135.7
120.4
155.0
153.0
119.6
126.1
113.8
152.6
152.8
112.6
122.8
114.1
146.6
151.1
112.7
120.0
151.7
126.7
125.8
150.8
126.7
126.0
149.7
116.1
126.3
150.5
118.6
123.5
151.0
123.6
123.7
151.0
121.4
124.3
150.7
120.6
125.9
149.8
114.3
126.4
148.3
151.5
150.6
149.8
146.5
146.8
147.0
152.5
154.2
154.4
155.8
4.72
7.74
1.79
2.24
144.2
215.6
129.7
274.0
69.3
143.4
204.6
128.0
264.1
70.8
145.3
199.8
128.3
247.3
65.6
145.6
196.7
123.3
244.7
63.1
146.4
201.3
119.5
251.8
64.0
145.9
200.3
121.3
253.4
61.2
144.2
198.6
120.8
255.1
60.6
143.8
193.6
122.2
257.0
61.1
142.6
193.2
124.3
258.9
62.3
143.9
194.1
124.7
256.8
62.9
145.3
195.6
121.4
261.1
60.8
144.3
196.0
124.4
262.0
60.9
142.4
195.5
125.3
255.7
59.9
142.8
122.2
116.2
167.2
188.3
134.9
156.0
120.3
Durable
manufactures
22 Ordnance, private and
government
23 Lumber and products
24 Furniture and fixtures
25 Clay, glass, stone products
19.91
24
25
32
3.64
1.64
1.37
2.74
81.1
119.1
157.2
147.9
84.3
104.7
153.7
135.9
85.5
104.8
149.4
131.5
84.1
99.2
144.3
128.5
83.8
104.9
148.4
135.0
83.8
103.5
150.2
131.5
85.2
106.2
151.8
127.0
86.3
110.6
151.1
125.0
86.5
112.2
152.5
126.1
87.1
116.9
154.5
126.9
86.5
120.3
156.7
128.8
86.9
120.2
155.7
130.0
88.7
118.4
154.7
128.9
26
27
28
29
30
33
331.2
34
35
36
6.57
4.21
5.93
9.15
8.05
107.9
99.8
136.4
171.2
178.4
96.6
87.2
130.2
167.9
175.7
89.6
79.2
126.1
167.4
170.7
89.7
79.6
120.7
160.9
168.2
88.5
78.5
121.4
160.0
172.9
83.0
73.0
121.1
157.3
172.6
76.4
65.1
119.1
153.7
172.2
75.2
62.4
115.8
150.0
170.9
72.8
58.0
115.0
147.4
170.8
72.9
58.1
115.5
147.1
170.3
72.9
57.4
114.3
147.2
169.7
73.3
56.5
112.2
144.1
167.0
72.4
55.2
109.9
141.1
166.1
109.3
138.6
165.6
37
371
9.27
4.50
116.1
122.3
106.1
105.5
103.7
100.4
96.6
90.4
102.0
98.6
104.4
105.6
105.9
110.7
110.0
119.8
111.6
124.0
112.7
127.2
107.0
116.7
105.3
113.5
100.6
103.0
99.7
101.2
372-9
38
39
4.77
2.11
1.51
110.2
170.3
154.7
106.8
167.1
151.7
106.8
166.8
147.9
102.4
162.2
144.9
105.3
164.5
144.5
103.2
163.0
145.3
101.3
162.8
144.6
100.8
163.8
141.7
99.9
164.8
136.8
99.0
165.2
134.7
97.8
165.5
133.9
97.6
162.2
132.9
98.4
158.4
131.2
98.3
158.0
130.5
Primary metals
Iron and steel
Fabricated metal products.
Nonelectrical machinery. . .
Electrical machinery
31 Transportation equipment
32
Motor vehicles and parts
33
Aerospace and miscellaneous
transportation equipment
34 Instruments
35 Miscellaneous manufactures . . . .
70.1
Gross value (billions of 1972 dollars, annual rates)
MAJOR MARKET
36 Products, total
507.4
612.3
597.6
592.8
577.4
588.1
586.8
582.1
586.1
584.1
585.8
578.5
573.1
569.3
566.8
37 Final
38
Consumer goods
39
Equipment
40 Intermediate
390.9
277.5
113.4
116.6
474.1
318.0
156.1
138.2
465.2
310.5
154.7
132.4
462.3
307.2
155.1
130.5
448.8
298.9
149.9
128.7
457.1
306.3
150.8
131.1
456.6
306.9
149.7
130.2
453.5
306.7
146.8
128.6
458.3
312.3
146.0
127.8
456.7
313.1
143.5
127.4
457.2
314.9
142.3
128.7
449.2
309.1
140.1
129.3
444.4
307.6
136.7
128.7
441.8
306.0
135.7
127.6
439.2
303.5
135.7
127.5
1. 1972 dollar value.
NOTE. Published groupings include some series and subtotals not shown separately. For description and historical data, see Industrial Production—1976
Revision
(Board of Governors of the Federal Reserve System: Washington, D . C . ) , December 1977.
A50
2.14
Domestic Nonfinancial Statistics • December 1982
HOUSING A N D CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1982
1979
Item
1980
1981
Mar.
Apr.
May
June
July
Aug.'
Sept/
Oct.
Private residential real estate activity (thousands of units)
N E W UNITS
1 Permits authorized
2
1-family
3
2-or-more-family
1,552
981
570
1,191
710
480
986
564
421
851
460
391
879
450
429
944
488
456
929
516
413
1,062
500
562
888
497
391
1,003
561
442
1,181
634
547
4 Started
5
1-family
6
2-or-more-family
1,745
1,194
551
1,292
852
440
1,084
705
379
931
621
310
882
566
316
1,066
631
435
908
621
287
1,193
628
565
1,033
645
388
1,111
670
441
1,122
679
443
7 U n d e r construction, end of period 1
8
1-family
9
2-or-more-family
1,140
639
501
896
515
382
682
382
301
682
399
283
673
393
280
664
382
282
660
384
276
669
373
296
686
379
307
n.a.
n.a.
n.a.
1,855
1,286
569
1,502
957
545
1,266
818
447
926
585
341
962
596
366
1,138
684
454
939
582
357
1,007
693
314
1,006
638
368
925
577
348
n.a.
n.a.
n.a.
277
222
241
252
255
246
257
246
234
222
n.a.
709
402
545
342
436
278
380
269
335
264
395
259
369
254
352 r
250
382
248
489
248
487
243
62.8
64.7
68.8
67.2
70.2
69.3
69.3
70.9
70.7
67.7
69.4
71.9
76.4
83.1
83.7
85.0
86.5
84.9
86.5 r
86.9
79.6
81.3
3,701
2,881
2,350
1,990
1,910
1,900
1,980
1,890
1,820
1,840
1,920
55.5
64.0
62.1
72.7
66.1
78.0
67.0
79.1
67.1
79.4
67.8
80.6
69.4
82.3
69.2
82.0
68.9
82.0
67.3
80.0
67.5
79.8
10 Completed
11
1-family
12
2-or-more-family
13 Mobile homes shipped
Merchant builder activity in 1-family
14 Number sold
15 Number for sale, end of period 1
Price (thousands
Median
16
Units sold
Average
17
Units sold
of
units
673'
377 r
296 r
dollars)2
EXISTING U N I T S ( 1 - f a m i l y )
18 Number sold
Price of units sold (thousands
19 Median
20 Average
of
dollars)2
Value of new construction 3 (millions of dollars)
CONSTRUCTION
21 Total put in place
230,412
230,748
238,198
224,583
226,095
228,745
231,589
228,775
230,413
232,353
234,905
22 Private
23
Residential
24
Nonresidential, total
Buildings
25
Industrial
26
Commercial
27
Other
28
Public utilities and other
181,622
99,028
82,594
175,701
87,261
88,440
185,221
86,566
98,655
173,605
70,040
103,565
175,142
72,300
102,842
179,941
75,453
104,488
182,651
75,251
107,400
180,336
76,234
104,102
179,638
76,935
102,703
182,014
77,336
104,678
182,902
77,721
105,181
14,953
24,919
7,427
35,295
13,839
29,940
8,654
36,007
17,031
34,243
9,543
37,838
16,641
38,362
9,880
38,682
15,882
38,437
9,897
38,626
17,118
36,818
10,427
40,125
18,424
38,048
10,579
40,349
16,404
37,512
10,130
40,056
16,691
36,091
10,499
39,422
17,728
37,129
10,506
39,315
18,283
36,049
10,826
40,023
48,790
1,648
11,997
4,586
30,559
55,047
1,880
13,808
5,089
34,270
52,977
1,966
13,304
5,225
32,482
50,978
2,317
13,307
5,056
30,298
50,953
1,706
12,113
5,493
31,641
48,804
2,140
11,655
5,223
29,786
48,938
1,901
13,073
5,051
28,913
48,439
1,891
14,119
5,060
27,369
50,775
1,997
13,327
5,036
30,415
50,339
2,060
13,464
4,719
30,096
52,003
2,149
14,151
5,242
30,461
29 Public
30
Military
31
Highway
32
Conservation and development
Other
33
1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly comparable
with data in prior periods because of changes by the Bureau of the Census in its
estimating techniques. For a description of these changes see Construction
Reports
(C-30-76-5), issued by the Bureau in July 1976.
NOTE. Census Bureau estimates for all series except (a) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing Institute
and seasonally adjusted by the Census Bureau, and (b) sales and prices of existing
units, which are published by the National Association of Realtors. All back and
current figures are available f r o m originating agency. Permit authorizations are
those reported to the Census Bureau from 16,000 jurisdictions beginning with 1978.
Prices
2.15
A51
C O N S U M E R A N D P R O D U C E R PRICES
Percentage changes based on seasonally adjusted data, except as noted
12 months to
Item
1981
1981
1982
Oct.
Oct.
1 month to
3 months (at annual rate) to
Dec.
1982
1982
Mar.
June
Index
level
Oct.
Sept.
June
July
Sept.
Aug.
1982
(1967
= 100)'
Oct.
CONSUMER P R I C E S 2
1
A11 items
10.2
5.1
5.4
1.0
9.3
4.2
1.0
.6
.3
.2
.5
294.1
2
3
4
5
6
7
8
9
Commodities
Food
Commodities less food
Durable
Nondurable
Services
Rent
Services less rent
7.1
5.8
7.7
6.8
8.8
14.6
8.4
15.5
3.7
3.4
3.9
5.6
1.9
6.8
7.2
6.8
3.6
1.7
4.3
1.2
3.8
7.8
9.0
7.6
.8
3.9
-2.6
3.5
-4.9
3.5
5.9
3.3
7.8
7.3
7.9
14.1
1.9
11.3
5.6
11.9
3.4
.6
4.7
1.5
6.1
5.4
8.0
5.0
1.3
.6
1.5
1.3
2.0
.8
.4
.9
.6
-.1
.8
.3
1.1
.6
1.0
.5
.0
.3
.2
.3
.2
.6
.5
.6
.2
.5
.2
-.2
.2
.1
.4
.1
.6
.2
.8
.5
1.1
.2
.9
.2
267.5
287.0
255.4
246.0
265.7
340.3
228.9
361.6
Other groupings
All items less food
All items less food and energy
Homeownership
11.2
10.9
13.2
5.4
5.9
4.4
6.2
5.6
.3
.9
3.0
-2.4
9.7
10.6
19.8
4.9
4.6
.4
1.2
.9
1.4
.7
.6
.4
.4
.5
.4
.1
.0
-.7
.5
.4
-.1
294.0
281.5
382.8
7.4
7.0
2.4
8.9
8.9
9.2
3.6
3.3
1.5
4.2
4.5
.3
5.5
4.5
-3.9
7.8
9.7
2.7
.9
.6
6.1
-1.4
2.4
-1.8
4.1
3.7'
11.5
.7'
5.6'
-1.5'
4.2
4.2'
-7.4
9.5'
3.8R
2.4'
1.0
1.1'
.5
1.3'
.7'
.3
-.1
-.1
-.5
.1
-.4
.1
.5
.5
-.2
.8
.2
-.1
284.1
284.2
257.8
293.3
283.8
315.5
15.4
-12.0
-.8
-3.8
-6.0
-25.5
-18.0
23.3
8.3R
24.3
8.1'
-26.4
.6
-.8'
1.0
-3.8
.6
-1.9
475.4
236.3
10
11
12
P R O D U C E R PRICES
Finished goods
Consumer
Foods
Excluding foods
Capital equipment
Intermediate materials 3
Crude materials
19
Nonfood
20
Food
13
14
15
16
17
18
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers.
.6
.5
-1.5
1.4
.6'
.5
1.0
-2.7
.6
.6
.1
.8
.7
-.1
-.1
-1.0
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.
A52
2.16
Domestic Nonfinancial Statistics • December 1982
GROSS N A T I O N A L P R O D U C T A N D INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1981
Account
1979
1980
1982
1981
Q3
Q4
Q1
Q2
Q3'
GROSS NATIONAL PRODUCT
1 Total
2,417.8
2,633.1
2,937.7
2,980.9
3,003.2
2,995.5
3,045.2
3,080.7
1,507.2
213.4
600.0
693.7
1,667.2
214.3
670.4
782.5
1,843.2
234.6
734.5
874.1
1,868.8
241.2
741.3
886.3
1,884.5
229.6
746.5
908.3
1,919.4
237.9
749.1
932.4
1,947.8
240.7
755.0
952.1
1,987.5
240.1
767.9
979.5
423.0
408.8
290.2
98.3
191.9
118.6
114.0
402.4
412.4
309.2
110.5
198.6
103.2
98.3
471.5
451.1
346.1
129.7
216.4
105.0
99.7
486.0
454.2
353.0
132.7
220.2
101.2
95.6
468.9
455.7
360.2
139.6
220.6
95.5
89.4
414.8
450.4
357.0
141.4
215.6
93.4
87.9
431.5
447.7
352.2
143.6
208.6
95.5
89.6
441.3
438.4
341.2
139.1
202.1
97.2
91.3
14.3
8.6
-10.0
-5.7
20.5
15.0
31.8
24.6
13.2
6.0
-35.6
-36.0
-16.2
-15.0
2.9
2.9
15 Net exports of goods and services
16
Exports
17
Imports
13.2
281.4
268.1
25.2
339.2
314.0
26.1
367.3
341.3
25.9
367.2
341.3
23.5
367.9
344.4
31.3
359.9
328.6
34.9
365.8
330.9
2.7
347.0
344.2
18 Government purchases of goods and services
19
Federal
20
State and local
474.4
168.3
306.0
538.4
197.2
341.2
596.9
229.0
368.0
600.2
230.0
370.1
626.3
250.5
375.7
630.1
249.7
380.4
630.9
244.3
386.6
649.2
256.4
392.7
2,403.5
1,065.6
464.8
600.8
1,089.7
262.5
2,643.1
1,141.9
477.3
664.6
1,225.6
265.7
2,917.3
1,289.2
528.1
761.1
1,364.3
284.2
2,949.1
1,317.0
547.3
769.7
1,382.1
281.9
2,989.9
1,298.5
504.9
793.6
1,421.5
283.3
3,031.1
1,269.4
482.4
787.0
1,444.4
281.7
3,061.4
1,283.1
505.9
777.2
1,476.7
285.3
3,077.8
1,285.8
512.4
773.4
1,511.1
283.8
14.3
10.5
3.8
-10.0
-5.2
-4.8
20.5
8.7
11.8
31.8
19.8
12.0
13.2
-5.6
18.9
-35.6
-30.9
-4.8
-16.2
-6.6
-9.6
2.9
9.5
-6.6
1,479.4
1,474.0
1,502.6
1,510.4
1,490.1
1,470.7
1,478.4
1,478.4
31 Total
1,966.7
2,117.1
2,352.5
2,387.3
2,404.5
2,396.9
2,425.2
2,457.6
32 Compensation of employees
33
Wages and salaries
34
Government and government enterprises
35
Other
36
Supplement to wages and salaries
37
Employer contributions for social insurance
38
Other labor income
1,458.1
1,237.4
236.2
1,001.4
220.7
105.8
114.9
1,598.6
1,356.1
260.2
1,095.9
242.5
115.3
127.3
1,767.6
1,494.0
283.1
1,210.9
273.6
133.2
140.4
1,789.1
1,512.6
284.0
1,228.6
276.5
134.3
142.2
1,813.4
1,531.1
292.3
1,238.8
282.3
136.5
145.8
1,830.8
1,541.5
296.3
1,245.2
289.3
140.2
149.1
1,850.7
1.556.6
300.0
1,256.6
294.1
141.7
152.5
1.868.2
1,569.9
303.5
1,266.3
298.3
142.8
155.5
132.1
100.2
31.9
116.3
96.9
19.4
124.7
100.7
24.0
127.5
100.4
27.1
124.1
99.5
24.6
116.4
98.6
17.8
117.3
99.9
17.4
118.3
101.7
16.6
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
Nonfarm
13
14
Change in business inventories
Nonfarm
By major type of
21 Final sales, total
22
Goods
23
Durable
24
Nondurable
25
Services
26
Structures
product
27 Change in business inventories
28
Durable goods
29
Nondurable goods
30 MEMO: Total GNP in 1972 dollars
N A T I O N A L INCOME
39 Proprietors' income 1
40
Business and professional 1
41
Farm 1
42 Rental income of persons 2
43 Corporate profits 1
44
Profits before tax 3
45
Inventory valuation adjustment
46
Capital consumption adjustment
47 Net interest
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
27.9
32.9
33.9
33.6
33.6
33.9
34.2
34.6
194.8
252.7
-43.1
-14.8
181.6
242.5
-43.0
-17.8
190.6
232.1
-24.6
-16.8
193.1
233.3
-23.0
-17.1
183.9
216.5
-17.1
-15.5
157.1
171.6
-4.4
-10.1
155.4
171.7
-9.4
-6.9
165.9
179.9
-9.9
-4.0
153.8
187.7
235.7
244.0
249.5
258.7
267.5
270.6
3. For after-tax profits, dividends, and the like, see table 1.49.
SOURCE. Survey of Current Business (Department of Commerce).
National Income Accounts
2.17
A53
P E R S O N A L INCOME A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1982
1981
Account
1979
1980
1981
Q3
Q4
Q3r
Q2
Q1
P E R S O N A L INCOME AND SAVING
1 Total personal income
1,943.8
2,160.2
2,404.1
2,458.2
2,494.6
2,510.5
2,552.7
2,596.0
2 Wage and salary disbursements
3
Commodity-producing industries
4
Manufacturing
5
Distributive industries
6
Service industries
7
Government and government enterprises
1,237.6
438.4
333.9
303.4
259.7
236.2
1,356.1
468.0
354.4
330.5
297.5
260.2
1,493.9
510.8
386.4
361.4
338.6
283.1
1,512.3
519.3
392.9
366.5
342.8
283.8
1,531.2
517.7
388.7
368,3
352.8
292.4
1,541.6
514.3
385.1
371.4
359.5
296.5
1,556.6
513.6
385.6
375.4
367.6
300.0
1,569.9
510.1
383.7
378.5
377.7
303.5
114.9
132.1
100.2
31.9
27.9
50.8
209.6
250.3
131.8
127.3
116.3
96.9
19.4
32.9
55.9
256.3
297.2
154.2
140.4
124.7
100.7
24.0
33.9
62.5
308.5
336.3
182.0
142.2
127.5
100.4
27.1
33.6
64.1
339.6
344.8
190.6
145.8
124.1
99.5
24.6
33.6
65.2
351.0
350.7
192.8
149.1
116.4
98.6
17.8
33.9
65.8
359.7
354.6
194.7
152.5
117.3
99.9
17.4
34.2
66.1
372.0
365.2
197.5
155.5
118.3
101.7
16.6
34.6
67.2
382.2
380.7
209.2
8
9
10
11
12
13
14
15
16
17
Other labor income
Proprietors' income 1
Business and professional 1
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
81.1
88.7
104.9
106.1
107.0
110.6
111.4
112.4
1,943.8
2,160.2
2,404.1
2,458.2
2,494.6
2,510.5
2,552.7
2,596.0
301.0
336.3
386.7
398.1
393.2
393.4
401.2
394.3
20 EQUALS: Disposable personal income
1,650.2
1,824.1
2,029.2
2,060.0
2,101.4
2,117.1
2,151.5
2,201.7
21
LESS: Personal outlays
1,553.5
1,717.9
1,898.9
1,925.7
1,942.7
1,977,9
2,007.2
2,047.3
22 EQUALS: Personal saving
96.7
106.2
130.2
134.4
158.6
139.1
144.3
154.4
6,572
4,120
4,512
5.9
6,474
4,087
4,472
5.8
6,536
4,122
4,538
6.4
6,563
4,134
4,557
6.5
6,458
4,088
4,559
7.5
6,360
4,104
4,527
6.6
6,380
4,121
4,552
6.7
6,364
4,123
4,566
7.0
422.8
406.3
477.5
490.0
476.3
428.8
441.5
428.2
407.3
96.7
54.5
-43.1
438.3
106.2
38.9
-43.0
504.7
130.2
44.4
-24.6
513.4
134.4
43.9
-23.0
547.7
158.6
44.3
-17.1
520.3
139.1
32.5
-4.4
529.0
144.3
30.7
-9.4
548.8
154.4
34.6
-9.9
157.5
98.6
.0
181.2
112.0
.0
206.2
123.9
.0
209.7
125.5
.0
216.0
128.7
.0
218.9
129.8
.0
223.4
130.5
.0
227.8
132.1
.0
14.3
-16.1
30.4
-33.2
-61.4
28.2
-28.2
-60.0
31.7
-24.5
-58.0
33.5
-72.5
-101.7
29.1
-90.7
-118.4
27.7
-87.5
-119.6
32.1
-120.6
-153.1
32.5
19
LESS: Personal tax and nontax payments
MEMO:
Per capita (1972 dollars)
23
Gross national product
24
Personal consumption expenditures
25
Disposable personal income
26 Saving rate (percent)
G R O S S SAVING
27 Gross saving
28
29
30
31
Gross private saving
Personal saving
Undistributed corporate profits 1
Corporate inventory valuation adjustment
Capital consumption
allowances
32 Corporate
33 Noncorporate
34 Wage accruals less disbursements
35 Government surplus, or deficit ( - ) , national income and
product accounts
Federal
State and local
36
37
38 Capital grants received by the United States, net
x
1.1
1.2
1.1
1.1
1.1
.0
.0
.0
39 Gross investment
421.2
410.1
475.6
489.1
469.0
421.3
442.3
421.4
40 Gross private domestic
41 Net foreign
423.0
-1.8
402.4
7.8
471.5
4.1
486.0
3.1
468.9
0.1
414.8
6.5
431.5
10.8
441.3
-19.9
42 Statistical discrepancy
-1.5
3.9
-1.9
-0.8
-7.2
-7.5
.8
-6.8
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
SOURCE. Survey of Current Business ( D e p a r t m e n t of Commerce).
A54
3.10
International Statistics • December 1982
U.S. I N T E R N A T I O N A L T R A N S A C T I O N S
Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted.1
1981
Item credits or debits
1979
1980
Q2
1 Balance on current account
1982
1981
03
04
Q2p
Q1
-466
1,520
4,471
1,399
1,975
751
-1,834
-927
1,293
1,088
742
2,062
2,680
-27,346
184,473
-211,819
-2,035
31,215
3,262
-25.338
224,237
-249,575
-2,472
29,910
6,203
-27,889
236,254
-264,143
-1,541
33,037
7,472
-6,547
60,284
-66,831
-587
8,201
1,842
-7,845
57,694
-65,539
61
8,183
2,160
-9,185
57,593
-66,778
-528
8,529
2,127
-5,873
55,780
-61,653
167
6,861
1,981
-5,784
55,094
-60,878
371
7,672
1,535
-2,011
-3.549
-2,101
-4,681
-2,104
-4,504
-524
-986
-558
-1,250
-562
-1,308
-575
-1,473
-662
-1,070
11 Change in U.S. government assets, other than official reserve assets, net (increase, - )
-3,743
-5,126
-5,137
-1,518
-1,257
-987
-904
-1,559
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
-1,133
-65
-1,136
-189
257
-8,155
0
-16
-1,667
-6,472
-5,175
0
-1,823
-2,491
-861
-905
0
-23
-780
-102
-4
0
-225
-647
868
262
0
-134
-358
754
-1,089
0
-400
-547
-142
-1,132
0
-241
-814
-77
17 Change in U.S. private assets abroad (increase, - ) 3
18
Bank-reported claims
19
Nonbank-reported claims
20
U.S. purchase of foreign securities, net
21
U.S. direct investments a b r o a d , net 3
-59.469
-26,213
-3,307
-4,726
-25,222
-72,746
-46,838
-3,146
-3,524
-19,238
-98,982
-84,531
-331
-5,429
-8,691
-19,143
-14,998
2,470
-1,511
-5,104
-15,996
-15,254
855
-618
-979
-46,952
-42,645
-508
-2,843
-956
-29,208
-32,708
4,112
-531
-81
-31,924
-33,866
n.a.
-409
2,351
22 Change in foreign official assets in the United States
(increase, + )
23
U.S. Treasury securities
24
Other U . S . government obligations
25
Other U.S. government liabilities 4
26
Other U.S. liabilities reported by U.S. banks
27
Other foreign official assets 5
-13,697
-22,435
463
-73
7,213
1,135
15,442
9,708
2,187
561
-159
3,145
4,785
4,983
1,289
-69
-4,083
2,665
-2,860
-2,063
536
48
-2,028
647
-5,835
-4,635
545
-337
-2,382
974
8,119
4,439
-246
275
3,436
215
-3,122
-1,344
-296
-182
-1,516
216
1,935
-2,087
258
361
3,367
36
28 Change in foreign private assets in the United States
(increase, + )*
29
U.S. bank-reported liabilities
30
U.S. nonbank-reported liabilities
31
Foreign private purchases of U.S. Treasury securities, net
32
Foreign purchases of other U.S. securities, net
33
Foreign direct investments in the United States, net 5
52,157
32,607
1,362
4,960
1,351
11,877
39,042
10,743
6,530
2,645
5,457
13,666
73,136
41,262
532
2,932
7,109
21,301
16,324
7,663
-162
750
3,533
4,540
22,715
16,916
1,006
-446
761
4,478
30,988
20,476
-457
1,238
396
9,335
28,203
25,423
-982
1,277
1,319
1,166
29,248
22,006
n.a.
2,074
2,495
2,673
34 Allocation of S D R s
35 Discrepancy
1.139
25,212
1,152
28,870
1,093
25,809
0
6,703
503
0
-374
-2,144
0
9,497
2,474
0
5,032
-899
0
1,370
577
25.212
28,870
25,809
6,200
1,770
7,023
5,931
793
3
4
5
6
7
8
9
10
37
Merchandise trade balance 2
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net 3
Other service transactions, net
Remittances, pensions, and other transfers
U.S. government grants (excluding military)
Statistical discrepancy in recorded data before seasonal
adjustment
MEMO;
Changes in official assets
U.S. official reserve assets (increase, " )
Foreign official assets in the United States
(increase, + )
40 Change in Organization of Petroleum Exporting Countries
official assets in the United States (part of line 22
above)
41 Transfers under military grant programs (excluded from
lines 4, 6, and 10 above)
38
39
-1,133
-8,155
-5,175
-905
-4
262
-1,089
-1,132
-13,624
14,881
4,854
-2,908
-5,498
7,844
-2,940
1,574
5,543
12,769
13,314
2,786
2,935
2,230
4,988
3,072
465
631
602
214
132
64
93
126
1. Seasonal factors are no longer calculated for lines 12 through 41.
2. D a t a are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing; military exports
are excluded from merchandise data and are included in line 6.
3. Includes reinvested earnings of incorporated affiliates.
4. Primarily associated with military sales contracts and other transactions arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
NOTE. Data are from Bureau of Economic Analysis, Survey of Current
(U.S. Department of Commerce).
Business
Trade and Reserve and Official Assets
3.11
A55
U.S. F O R E I G N T R A D E
Millions of dollars; monthly data are seasonally adjusted.
1982
Item
1979
1980
1981
Apr.
1
E X P O R T S of domestic and foreign
merchandise excluding grant-aid
shipments
2
G E N E R A L I M P O R T S including merchandise for immediate consumption plus entries into bonded
warehouses
3
Trade balance
181,860
220,626
233,677
17,843
July
June
18,822
18,218
Sept.
Aug.
18,026
17,498
Oct.
17,387
16,698
209,458
244,871
261,305
17,387
20,558
21,310
19,559
23,494
20,644
21,096
-27,598
-24,245
-27,628
456
-2,340
-2,488
-1,532
-5,9%
-3,257
-4,398
not covered in Census statistics, and (2) the exclusion of military sales (which are
combined with other military transactions and reported separately in the "service
account" in table 3.10, line 6). O n the import side, additions are made for gold,
ship purchases, imports of electricity from Canada and other transactions; military
payments are excluded and shown separately as indicated above.
NOTE. The data through 1981 in this table are reported by the Bureau of Census
data on a free-alongside-ship (f.a.s.) value basis—that is, value at the port of export.
Beginning in 1981, foreign trade of the U . S . Virgin Islands is included in the Census
basis trade data; this adjustment has been made for all data shown in the table.
Beginning with 1982 data, the value of imports are on a customs valuation basis.
The Census basis data differ f r o m merchandise trade data shown in table 3.10,
U.S. International Transactions Summary, for reasons of coverage and timing. On
the export side, the largest adjustments are: (1) the addition of exports to Canada
3.12
May
SOURCE. FT900 "Summary of U.S. Export and Import Merchandise T r a d e "
(U.S. Department of Commerce, Bureau of the Census).
U.S. R E S E R V E ASSETS
Millions of dollars, end of period
1982
1979
Type
1980
1981
May
July
June
Sept.r
Aug.
Nov.
Oct.
1
Total 1
18,956
26,756
30,075
30,915
30,671
31,227
31,233
31,864
31,711
34,006
2
Gold stock, including Exchange Stabilization Fund 1
11,172
11,160
11,151
11,149
11,149
11,149
11,148
11,148
11,148
11,148
3
Special drawing rights 2 , 3
2,724
2,610
4,095
4,521
4,461
4,591
4,601
4,809
4,801
4,929
4
Reserve position in International Monetary F u n d 2
1,253
2,852
5,055
6,099
6,062
6,386
6,433
6,406
6,367
7,185
5
Foreign currencies 4
3,807
10,134
9,774
9,146
8,999
9,101
9,051
8,630
9,395
10,744
5
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.
2. Beginning July 1974, the I M F adopted a technique for valuing the S D R based
on a weighted average of exchange rates for the currencies of member countries.
From July 1974 through D e c e m b e r 1980, 16 currencies were used; from January
1981, 5 currencies have been used. T h e U.S. S D R holdings and reserve position
in the I M F also are valued on this basis beginning July 1974.
3.13
3. Includes allocations by the International Monetary Fund of S D R s 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 net transactions in SDRs.
4. Beginning November 1978, valued at current market exchange rates.
5. Includes U.S. government securities held under repurchase agreement against
receipt of foreign currencies, if any.
F O R E I G N OFFICIAL ASSETS H E L D A T F E D E R A L R E S E R V E B A N K S
Millions of dollars, end of period
1982
Assets
1979
1980
1981
May
1 Deposits
Assets held in custody
2 U.S. Treasury securities 1
3 E a r m a r k e d gold 2
July
Aug.
Sept.
Oct.
Nov.
429
411
505
308
585
982
347
396
326
386
95,075
15,169
102,417
14,965
104,680
14,804
102,112
14,778
103,292
14,777
106,696
14,762
104,136
14,761
106,117
14,726
107,636
14,706
107,467
15,279
1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies.
2. The value of earmarked gold increased because of the changes in par value
of the U.S. dollar in May 1972 and in October 1973.
June
NOTE. Excludes deposits and U.S. Treasury securities held for international and
regional organizations. E a r m a r k e d gold is gold held for foreign and international
accounts and is not included in the gold stock of the United States,
A56
3.14
International Statistics • December 1982
F O R E I G N B R A N C H E S OF U.S. B A N K S
Balance Sheet Data
Millions of dollars, end of period
1982
Asset account
1979
1980
1981
Mar'
Apr.
May
June'
July'
Aug.
Sept.'
All foreign countries
1 Total, all currencies
2 Claims on United States
3
Parent bank
4
Other
5 Claims on foreigners
6
Other branches of parent bank
7
Banks
8
Public borrowers
9
Nonbank foreigners
10 Other assets
11 Total payable in U.S. dollars
12 Claims on United States
13
Parent bank
14
Other
15 Claims on foreigners
16
Other branches of parent bank
17
Banks
18
Public borrowers
19
Nonbank foreigners
20 Other assets
364,409
401,135
462,790
463,849
460,437
461,800
458,841
465,658
471,469
470,750
32,302
25,929
6,373
28,460
20,202
8,258
63,540
43,064
20,476
75,760
53,135
22,625
77,932
55,713
22,219
79,621
57,092
22,529
83,573
58,598
24,975
82,250
55,594
26,656
88,885
60,232
28,653
90,189
60,801
29,388
317,330
79,662
123,420
26,097
88,151
354,960
77,019
146,448
28,033
103,460
379,102
87,840
150,892
28,197
112,173
368,843
86,797
147,119
26,346
108,581
362,877
86,120'
142,582 '
25,603
108,572
362,457
88,406'
139,589'
25,002
109,460
356,389
87,189
137,588
25,239
106,373
364,160
89,481
143,046
24,654
106,979
362,253
91,639
138,465
24,492
107,657
360,196
93,347
135,281
24,321
107,247
14,777
17,715
20,148
19,246
19,628
19,722
18,879
19,248
20,331
20,365
267,713
291,798
350,678
355,721
351,561
351,966
353,816
360,004
366,176
369,675
31,171
25,632
5,539
27,191
19,896
7,295
61,939
42,518
19,421
74,241
52,546
21,695
76,428
55,257
21,171
78,015
56,607
21,408
82,006
58,101
23,905
80,607
54,915
25,692
87,267
59,541
27,726
88,535
60,136
28,399
229,120
61.525
96,261
21,629
49,705
255,391
58,541
117,342
23,491
56,017
277,085
69,403
122,253
22,877
62,552
269,713
70,321
117,530
20,645
61,217
263,234
69,343'
113,868''
20,183
59,840
262,008
70,733'
110,972'
19,592
60,711
260,530
70,395
110,265
19,957
59,913
267,586
72,515
115,364
19,306
60,401
266,503
74,293
111,756
19,043
61,411
268,236
77,525
110,516
18,984
61,211
7,422
9,216
11,654
11,767
11,899
11,943
11,280
11,811
12,406
12,904
United Kingdom
21 Total, all currencies
22 Claims on United States
23
Parent bank
24
Other
25 Claims on foreigners
26
Other branches of parent bank
27
Banks
28
Public borrowers
29
Nonbank foreigners
30 Other assets
130,873
144,717
157,229
161,471
159,481
161,036
158,466
164,106
164,523
167,189
11,117
9,338
1,779
7,509
5,275
2,234
11,823
7,885
3,938
16,343
12,446
3,897
17,676
13,750
3,926
20,155
15,854
4,301
20,744
16,768
3,976
23,962
19,680
4,282
27,031
22,730
4,301
27,534
22,970
4,564
115,123
34,291
51,343
4,919
24,570
131,142
34,760
58,741
6,688
30,953
138,888
41,367
56,315
7,490
33,716
139,292
41,186
56,940
7,541
33,625
135,634
39,811
55,545
6,822
33,456
134,845
39,621
54,674
6,663
33,887
131,860
37,696
54,727
6,595
32,842
133,964
37,250
56,428
6,456
33,830
130,814
36,937
53,582
6,286
34,009
132,746
40,385
52,203
6,086
34,072
4,633
6,066
6,518
5,836
6,171
6,063
5,862
6,180
6,678
6,909
31 Total payable in U.S. dollars
94,287
99,699
115,188
120,432
117,914
119,586
120,002
125,247
126,344
131,129
32 Claims on United States
33
Parent bank
34
Other
10,746
9,297
1,449
7,116
5,229
1,887
11,246
7,721
3,525
15,842
12,293
3,549
17,182
13,623
3,559
19,608
15,663
3,945
20,256
16,599
3,657
23,421
19,451
3,970
26,514
22,496
4,018
26,919
22,758
4,161
35 Claims on foreigners
36
Other branches of parent bank
37
Banks
38
Public borrowers
39
Nonbank foreigners
81,294
28,928
36,760
3,319
12,287
89,723
28,268
42,073
4,911
14,471
99,850
35,439
40,703
5,595
18,113
100,500
36,055
40,732
5,360
18,353
96,595
34,240
40,070
4,717
17,568
95,926
33,922
39,593
4,507
17,904
95,857
32,567
40,479
4,655
18,156
97,699
32,007
42,515
4,513
18,664
95,293
31,414
40,321
4,336
19,222
99,008
35,703
39,786
4,214
19,305
2,247
2,860
4,092
4,090
4,137
4,052
3,889
4,127
4,537
5,202
40 Other assets
Bahamas and Caymans
108,977
123,837
149,051
143,981
143,153
140,045
141,878
141,124
144,230
140,528
42 Claims on United States
43
Parent bank
44
Other
19,124
15,196
3,928
17,751
12,631
5,120
46,343
31,440
14,903
54,034
36,468
17,566
55,551
38,163
17,388
54,331
37,039
17,292
56,704
36,623
20,081
52,341
30,874
21,467
56,034
32,737
23,297
55,397
32,089
23,308
45 Claims on foreigners
46
Other branches of parent bank
47
Banks
48
Public borrowers
49
Nonbank foreigners
86,718
9,689
43,189
12,905
20,935
101,926
13,342
54,861
12,577
21,146
98,205
12,951
55,299
10,010
19,945
85,630
11,979
48,026
7,993
17,632
83,311
12,574'
45,963'
7,860
16,914
81,377
14,186'
43,354'
7,361
16,476
81,170
15,407
42,747
7,327
15,689
84,734
17,538
44,547
7,031
15,618
83,918
17,806
43,701
7,036
15,375
81,034
17,772
41,313
6,999
14,950
41 Total, all currencies
50 Other assets
51 Total payable in U.S. dollars
3,135
4,160
4,503
4,317
4,291
4,337
4,004
4,049
4,278
4,097
102,368
117,654
143,686
138,934
138,052
135,134
136,910
135,645
138,807
135,991
Overseas Branches
3.14
A57
Continued
1982
T flh l tv a
n int
1980
1981
Mar.'
Apr.
May
June'
July'
Aug.
Sept.''
All foreign countries
52 Total, all currencies
53 To United States
54
Parent bank
55
Other banks in United States
56
Nonbanks
57 To foreigners
Other branches of parent bank
58
59
Banks
60
Official institutions
61
Nonbank foreigners
62 Other liabilities
63 Total payable in U.S. dollars
64 To United States
65
Parent bank
66
Other banks in United States
67
Nonbanks
68 To foreigners
Other branches of parent bank
69
70
Banks
71
Official institutions
72
Nonbank foreigners
73 Other liabilities
364,409
401,135
462,790
463,849
460,437
461,800
458,841
465,658
471,469
470,750
66,689
24,533
13,968
28,188
91,079
39,286
14,473
37,275
137,712
56,143
19,343
62,226
150,975
58,898
24,427
67,650
153,220
57,031
26,022
70,167
156,296
56,414
27,685
72,197
160,914
59,202
29,534
72,178
164,549
60,949
31,560
72,040
167,689
64,390
32,453
70,846
170,428
66,909
33,885
69,634
283,510
77,640
122,922
35,668
47,280
295,411
75,773
132,116
32,473
55,049
305,630
86,406
124,896
25,997
68,331
293,416
85,576
117,121
23,039
67,680
287,024
84,149'
111,716'
22,340
68,819
284,411
85,630'
107,376'
22,703
68,702
278,451
84,517
105,147
19,914
68,873
281,571
86,777
105,962
20,239
68,593
283,693
92,190
103,417
20,004
68,082
280,107
93,721
99,919
20,277
66,190
14,210
14,690
19,448
19,458
20,193
21,093
19,476
19,538
20,087
20,215
273,857
303,281
364,390
369,689
366,867
368,544
369,380
376,153
381,929
385,394
64,530
23,403
13,771
27,356
88,157
37,528
14,203
36,426
134,645
54,291
19,029
61,325
147,928
56,833
24,186
66,909
150,116
54,970
25,685
69,461
153,166
54,452
27,270
71,444
157,717
57,174
29,198
71,345
161,294
58,968
31,228
71,098
164,450
62,374
32,175
69,901
167,585
65,048
33,630
68,907
201,514
60,551
80,691
29,048
31,224
206,883
58,172
87,497
24,697
36,517
217,602
69,309
79,584
20,288
48,421
210,314
69,492
73,233
18,120
49,469
205,039
68,046'
69,332'
17,491
50,170
202,585
68,539'
66,666'
17,900
49,480
200,262
68,517
65,820
15,373
50,552
203,746
70,430
66,523
15,737
51,056
205,692
75,343
63,974
15,667
50,708
206,435
78,467
62,534
16,357
49,077
7,813
8,241
12,143
11,447
11,712
12,793
11,401
11,113
11,787
11,374
United Kingdom
74 Total, all currencies
75 To United States
76
Parent bank
77
Other banks in United States
Nonbanks
78
79 To foreigners
80
Other branches of parent bank
81
Banks
82
Official institutions
83
Nonbank foreigners
130,873
144,717
157,229
161,471
159,481
161,036
158,466
164,106
164,523
167,189
20,986
3,104
7,693
10,189
21,785
4,225
5,716
11,844
38,022
5,444
7,502
25,076
42,481
6,313
8,607
27,561
41,886
8,006
8,345
25,535
43,882
6,694
8,972
28,216
44,086
6,323
9,985
27,778
46,965
6,679
11,215
29,071
49,001
8,022
11,616
29,363
53,919
11,336
13,280
29,303
104,032
12,567
47,620
24,202
19,643
117,438
15,384
56,262
21,412
24,380
112,255
16,545
51,336
16,517
27,857
111,262
17,245
49,616
14,608
29,793
109,629
18,358
47,549
13,908
29,814
109,199
19,412
46,204
14,119
29,464
106,665
17,771
46,628
11,746
30,520
109,105
18,010
48,541
12,076
30,478
107,268
18,666
47,502
12,006
29,094
104,967
19,123
45,526
12,098
28,220
5,855
5,494
6,952
7,728
7,966
7,955
7,715
8,036
8,254
8,303
85 Total payable in U.S. dollars
95,449
103,440
120,277
126,359
124,248
126,901
125,859
131,199
132,536
137,268
86 To United States
87
Parent bank
88
Other banks in United States
89
Nonbanks
20,552
3,054
7,651
9,847
21,080
4,078
5,626
11,376
37,332
5,350
7,249
24,733
41,885
6,211
8,489
27,185
41,198
7,907
8,167
25,124
43,143
6,624
8,755
27,764
43,323
6,212
9,806
27,305
46,129
6,603
11,048
28,478
48,266
7,928
11,510
28,828
53,262
11,223
13,142
28,897
90 To foreigners
91
Other branches of parent bank
92
Banks
93
Official institutions
94
Nonbank foreigners
72,397
8,446
29,424
20,192
14,335
79,636
10,474
35,388
17,024
16,750
79,034
12,048
32,298
13,612
21,076
80,825
13,130
32,090
12,196
23,409
79,444
14,102
30,415
11,568
23,359
79,914
14,958
29,965
11,829
23,162
78,794
13,903
30,557
9,843
24,491
81,207
14,202
32,364
10,200
24,441
79,954
14,514
31,898
10,322
23,220
80,025
15,548
31,187
10,762
22,528
2,500
2,724
3,911
3,649
3,606
3,844
3,742
3,863
4,316
3,981
84 Other liabilities
95 Other liabilities
Bahamas and Caymans
108,977
123,837
149,051
143,981
143,153
140,045
141,878
141,124
144,230
140,528
97 To United States
98
Parent bank
99
Other banks in United States
100
Nonbanks
37,719
15,267
5,204
17,248
59,666
28,181
7,379
24,106
85,704
39.250
10,620
35,834
91,946
39,278
14,281
38,387
94,322
35,956
15,903
42,463
94,579
36,552
16,827
41,200
97,916
39,416
17,410
41,090
98,654
41,132
17,836
39,686
99,315
42,976
17,922
38,417
96,895
41,720
17,977
37,198
101 To foreigners
102
Other branches of parent bank
103
Banks
104
Official institutions
105
Nonbank foreigners
68,598
20,875
33,631
4,866
9,226
61,218
17,040
29,895
4,361
9,922
60,012
20,641
23,202
3,498
12,671
49,052
18,609
16,470
2,607
11,366
45,828
17,364'
14,779 r
2,512
11,173
42,082
15,887'
13,508'
2,448
10,239
41,204
15,855
12,702
2,471
10,176
39,719
15,018
11,770
2,407
10,524
42,029
17,348
11,615
2,288
10,778
40,919
17,690
10,910
2,091
10,228
96 Total, all currencies
106 Other liabilities
107 Total payable in U.S. dollars
2,660
2,953
3,335
2,983
3,003
3,384
2,758
2,751
2,886
2,714
103,460
119,657
145,227
140,301
139,673
136,713
138,640
137,934
140,786
137,632
A58
3.15
International Statistics • December 1982
SELECTED U.S. LIABILITIES TO F O R E I G N OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1982
Item
1 Total'
2
3
4
5
6
7
8
9
10
11
12
By type
Liabilities reported by banks in the United States 2
U.S. Treasury bills and certificates 3
U.S. Treasury bonds and notes
Marketable
Nonmarketable 4
U.S. securities other than U.S. Treasury securities 5
By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries 6
1980
1981
May.
June
July
Aug.
Sept.
Oct.''
164,578
169,702
165,506
166,972
168,355
169,835
169,231
171,000
171,166
30,381
56,243
26,572
52,389
26,333
43,850
27,730
42,741
28,459
43,509
25,469
45,824
26,533
44,182
26,313
44,450
26,762
43,994
41,455
14,654
21,845
53,150
11,791
25,800
58,459
11,050
25,814
59,933
10,750
25,818
60,251
10,150
25,986
63,043
9,750
25,749
63,410
9,350
25,756
64,990
9,350
25,897
65,602
9,350
25,458
81,592
1.562
5,688
70,784
4,123
829
65,484
2,403
6,954
91,790
1,829
1,242
57,403
1,721
7,124
94,837
1,823
2,600
57,382
1,329
7,248
95,887
1,381
3,745
58,079
1,568
7,692
95,466
1,437
4,113
58,787
1,519
7,124
97,120
1,485
3,799
61,121
1,771
6,734
94,891
1,326
3,388
61,288
2,057
6,276
95,880
1,303
4,196
60,567
2,203
7,081
95,300
1,452
4,563
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial
paper, negotiable time certificates of deposit, and borrowings under repurchase
agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable
in foreign currencies through 1974) and Treasury bills issued to official institutions
of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes bonds
and notes payable in foreign currencies.
3.16
Apr.
5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
NOTE. Based on Treasury Department data and on data reported to the Treasury
Department by banks (including Federal Reserve Banks) and securities dealers in
the United States.
LIABILITIES TO A N D CLAIMS O N F O R E I G N E R S Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1981
Item
1979
1980
Dec.'
1
2
3
4
5
Banks' own liabilities
Banks' own claims
Deposits
Other claims
Claims of banks' domestic customers 1
1. Assets owned by customers of the reporting bank located in the United States
that represent claims on foreigners held by reporting banks for the accounts of
their domestic customers.
1,918
2,419
994
1,425
580
3,748
4,206
2,507
1,699
962
1982
1981'
3,763
5,224
3,398
1,826
971
3,763
5,224
3,398
1,826
971
Mar.
4,285
5,574
3,532
2,042
944
June'
4,648
6,260
3,457
2,803
921
Sept.''
4,841
6,604
3,537
3,067
506
NOTE. Data on claims exclude foreign currencies held by U.S. monetary authorities.
Bank-Reported.Data
3.17
LIABILITIES TO F O R E I G N E R S
Payable in U.S. dollars
Millions of dollars, end of period
A59
Reported by Banks in the United States
1982
Holder and type of liability
1979
1980
1981A
Apr.
May
June
July
Aug.'
Sept.
Oct.'
1 All foreigners
187,521
205,297
243,010
266,483
274,638
285,911
284,226
293,050
296,554
296,017
2 Banks' own liabilities
3
D e m a n d deposits
4
Time deposits 1
5
Other 2
6
Own foreign offices 3
117,196
23,303
13,623
16,453
63,817
124,791
23,462
15,076
17,583
68,670
162,780
19,646
28,816
17,474
96,844
195,117
17,716
48,754
19,030
109,616
203,259
16,566
53,667
21,187
111,839
212,634
17,285
56,007
22,146
117,196
208,290
17,101
59,517
20,308
111,363
217,492
15,852
62,103
24,232
115,305
218,466
15,418
61,881
23,387
117,780
217,151
17,091
61,997
22,619
115,444
70,325
48,573
80,506
57,595
80,230
55,316
71,366
47,362
71,379
46,487
73,277
48,817
75,936
51,211
75,558
49,646
78,089
51,572
78,866
53,403
19,396
2,356
20,079
2,832
18,944
5,970
19,326
4,679
20,751
4,141
20,448
4,011
20,717
4,009
22,134
3,778
22,437
4,080
21,748
3,715
2,356
2,344
2,721
2,048
3,039
4,001
4,082
5,073
4,936
5,804
714
260
151
303
444
146
85
212
638
262
58
318
608
149
291
168
1,272
185
471
616
1,233
300
586
347
2,246
343
633
1,271
3,093
265
453
2,376
2,638
194
734
1,711
2,112
263
409
1,440
1,643
102
1,900
254
2,083
541
1,439
142
1,767
253
2,768
1,425
1,835
487
1,980
328
2,298
676
3,692
2,160
1,538
2
1,646
0
1,542
0
1,297
0
1,514
0
1,343
0
1,349
0
1,652
0
1,621
0
1,532
0
7 Banks' custody liabilities 4
8
U.S. Treasury bills and certificates 5
9
Other negotiable and readily transferable
instruments 6
10
Other
11 Nonmonetary international and regional
organizations 7
12 Banks' own liabilities
13
D e m a n d deposits
14
Time deposits 1
15
Other 2
16 Banks' custody liabilities 4
17
U.S. Treasury bills and certificates
18
Other negotiable and readily transferable
instruments 6
19
Other
8
78,206
86,624
78,962
70,184
70,471
71,968
71,293
70,715
70,763
70,756
21 Banks' own liabilities
22
D e m a n d deposits
23
Time deposits 1
24
Other 2
18,292
4,671
3,050
10,571
17,826
3,771
3,612
10,443
16,813
2,581
4,146
10,086
17,122
2,800
5,623
8,699
17,633
2,162
5,769
9,702
18,964
3,167
5,500
10,297
15,887
2,800
6,061
7,026
16,262
2,006
5,749
8,507
16,519
2,526
5,203
8,790
16,728
2,164
5,965
8,599
25 Banks' custody liabilities 4
26
U.S. Treasury bills and certificates 5
27
Other negotiable and readily transferable
instruments 6
28
Other
59,914
47,666
68,798
56,243
62,149
52,389
53,063
43,850
52,838
42,741
53,004
43,509
55,406
45,824
54,453
44,182
54,245
44,450
54,028
43,994
12,196
52
12,501
54
9,712
47
9,029
183
10,057
40
9,461
33
9,547
36
10,234
37
9,755
39
10,000
34
20 Official institutions
29 Banks 9
88,316
96,415
135,359
161,229
165,465
173,299
170,998
177,575
179,830
178,399
30 Banks' own liabilities
Unaffiliated foreign banks
31
D e m a n d deposits
32
33
Time deposits 1
34
Other 2
35
Own foreign offices 3
83,299
19,482
13,285
1,667
4,530
63,817
90,456
21,786
14,188
1,703
5,895
68,670
123,640
26,796
11,614
8,654
6,528
96,844
148,502
38,886
9,912
19,301
9,673
109,616
152,893
41,054
9,700
21,189
10,165
111,839
160,594
43,398
9,274
23,403
10,721
117,196
157,327
45,964
9,384
25,390
11,190
111,363
163,365
48,060
8,765
26,731
12,564
115,305
164,005
46,226
8,138
26,260
11,828
117,780
162,949
47,506
9,887
26,139
11,480
115,444
5,017
422
5,959
623
11,718
1,687
12,727
2,598
12,573
2,707
12,706
2,926
13,671
3,872
14,209
3,970
15,825
4,897
15,449
5,634
2,415
2,179
2,748
2,588
4,421
5,611
5,968
4,161
6,100
3,766
6,520
3,260
6,661
3,138
7,102
3,138
7,916
3,012
7,069
2,746
40 Other foreigners
18,642
19,914
25,968
33,022
35,663
36,642
37,853
39,688
41,025
41,059
41 Banks' own liabilities
D e m a n d deposits
42
43
Time deposits
44
Other 2
14,891
5,087
8,755
1,048
16,065
5,356
9,676
1,033
21,689
5,189
15,958
543
28,885
4,855
23,540
490
31,462
4,518
26,239
705
31,842
4,544
26,518
781
32.829
4,575
27,433
822
34,772
4,816
29,171
785
35,304
4,560
29,685
1,059
35,363
4,778
29,485
1,100
3,751
382
3,849
474
4,279
699
4,137
7871
4,201
786
4,800
957
5,023
1,028
4,916
1,167
5,721
1,548
5,696
1,615
3,247
123
3,185
190
3,268
312
3,032
334
3,080
335
3,125
718
3,160
835
3,147
603
3,146
1,028
3,147
934
10,984
10,745
10,672
11,673
12,652
12,878
13,029
13,921
13,533
13,990
36 Banks' custody liabilities 4
37
U.S. Treasury bills and certificates
Other negotiable and readily transferable
38
instruments 6
39
Other
45 Banks' custody liabilities 4
46
U.S. Treasury bills and certificates
47
Other negotiable and readily transferable
instruments 6
48
Other
49 MEMO: Negotiable time certificates of
deposit in custody for foreigners
1. Excludes negotiable time certificates of deposit, which are included in " O t h e r
negotiable and readily transferable instruments."
2. Includes borrowing under repurchase agreements.
3. U.S. banks: includes amounts due to own foreign branches and foreign subsidiaries consolidated in "Consolidated Report of Condition" filed with bank regulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign
banks: principally amounts due to head office or parent foreign bank, and foreign
branches, agencies or wholly owned subsidiaries of head office or parent foreign
bank.
4. Financial claims on residents of the United States, other than long-term securities, held by or through reporting banks.
5. Includes nonmarketable certificates of indebtedness and Treasury bills issued
to official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable time certificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks.
8. Foreign central banks and foreign central governments and the Bank for
International Settlements.
9. Excludes central banks, which are included in "Official institutions."
A Liabilities and claims of banks in the United States were increased, beginning
in December 1981, by the shift from foreign branches to international banking
facilities in the United States of liabilities to, and claims on, foreign residents.
A60
3.17
International Statistics • December 1982
Continued
1982
Area and country
1979
1980
Apr.
May
June
July
Aug.'
Sept.
Oct.P
1 Total
187,521
205,297
243,010
266,483
274,638
285,911
284,226
293,050
296,554
296,017
2 Foreign countries
185,164
202,953
240,289
264,435
271,599
281,910
280,144
287,977
291,619
290,214
90,952
413
2,375
1,092
398
10,433
12,935
635
7.782
2.337
1.267
557
1,259
2.005
17,954
120
24,700
266
4,070
52
302
90,897
523
4,019
497
455
12.125
9,973
670
7,572
2,441
1,344
374
1,500
1,737
16,689
242
22,680
681
6,939
68
370
90,951
587
4,117
333
296
8,486
7,665
463
7,290
2,823
1,457
354
916
1,545
18,726
518
28,288
375
6,170
49
493
91,908
472
2,898
613
229
6,737
6,556
457
3,695
2,963
1,666
272
1,055
1,373
20,346
364
35,452
259
6,116
37
350
97,469
454
3,075
608
212
6,312
6,954
549
3,420
2,719
1,981
276
1,114
1,425
21,567
204
39,872
237
6,090
30
371
102,699
434
2,869
510
181
9,234
6,221
512
4,720
2,836
1,370
365
1,191
1,416
22,473
167
41,159
314
6,163
44
521
106,284
501
2,957
452
162
8,635
5,624
506
5,760
2,789
1,333
365
1,133
1,385
23,851
222
44,115
320
5,734
41
397
112,022
531
3,218
446
224
8,145
5,397
559
6,703
2,838
1,634
453
1,223
1,278
25,019
287
46,881
317
6,381
47
440
114,201
537
3,259
149
328
7,720
5,311
471
6,714
2,899
1,773
386
1,096
1,324
26,519
301
48,445
307
6,275
47
342
114,832
508
2,777
166
478
7,374
5,341
516
5,541
3,098
2,026
356
1,315
2,000
26,750
317
48,809
390
6,400
111
559
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
Other Western E u r o p e 1
21
22
U.S.S.R
23
Other Eastern Europe 2
24 Canada
25 Latin America
26
Argentina
27
Bahamas
28
Bermuda
29
Brazil
30
British West
Chile
31
Colombia
32
33
Cuba
34
Ecuador
35
Guatemala
36
Jamaica
37
Mexico
38
Netherlands
39
Panama
40
Peru
41
Uruguay
42
Venezuela
Other Latin
43
and Caribbean
Indies
Antilles
America and Caribbean
44 Asia
China
45
Mainland
46
Taiwan
47
Hong Kong
48
India
49
Indonesia
50
Israel
Japan
51
Korea
52
53
Philippines
54
Thailand
55
Middle-East oil-exporting countries 3
56
Other Asia
57
58
59
60
61
62
63
Egypt
Morocco
South Africa
Zaire
Oil-exporting countries 4
Other Africa
64 Other countries
Australia
65
66
All other
67 Nonmonetary international and regional
organizations
International
Latin American regional
Other regional 5
68
69
70
7.379
10,031
10,250
12,298
10,621
11,541
11,168
12,194
11,607
12,163
49,686
1,582
15,255
430
1,005
11,138
468
2.617
13
425
414
76
4.185
499
4,483
383
202
4.192
2,318
53,170
2,132
16.381
670
1,216
12,766
460
3,077
6
371
367
97
4,547
413
4,718
403
254
3,170
2,123
84,685
2,445
34,400
765
1,568
17,794
664
2,993
9
434
479
87
7.163
3,182
4,847
694
367
4,245
2,548
103,999
2,729
45,608
1,165
1,462
19,656
992
2,639
6
491
569
133
8,533
3,474
4,238
620
410
8,218
3,056
105,891
2,207
44,756
1,350
1,615
19,749
1,224
2,515
6
465
583
104
9,438
3,449
4,338
753
561
9,421
3,357
109,452
2,030
44,615
1,300
1,822
22,631
1,224
2,700
6
559
580
100
8,957
3,727
5,357
1,069
542
9,310
3,022
103,874
2,088
39,482
1,302
1,823
22,069
1,442
2,699
7
527
613
139
9,643
3,602
4,884
931
609
9,139
2,874
106,805
2,636
41,502
1,289
1,865
22,871
1,170
2,636
9
478
616
136
9,259
3,759
4,656
984
665
9,219
3,056
107,340
3,250
40,786
1,519
1,761
23,288
1,293
2,516
7
524
639
121
8,370
3,713
6,001
974
721
8,625
3,232
105,169
5,140
38,030
1,517
2,101
22,943
1,438
2,407
7
556
636
118
8,023
3,659
4,714
1,031
844
8,796
3,209
33,005
42,420
49,805
50,378
50,991
51,143
52,041
50,854
51,115
49,942
49
1,393
1,672
527
504
707
8,907
993
795
277
15,300
1,879
49
1,662
2,548
416
730
883
16,281
1,528
919
464
14,453
2.487
158
2,082
3,950
385
640
592
20,551
2,013
874
534
13,174
4,852
331
2,291
4,587
544
837
537
19,311
2,356
709
517
14,342
4,016
284
2,378
4,737
603
789
562
18,896
2,192
785
474
14,400
4,891
244
2,334
4,880
540
583
610
18,994
1,863
839
485
14,267
5,503
261
2,371
4,918
551
722
476
19,827
1,934
660
450
14,243
5,629
245
2,323
4,551
655
593
486
19,291
1,712
728
369
14,106
5,795
254
2,490
4,945
407
436
584
18,906
1,894
712
310
14,026
6,152
216
2,564
4,956
449
748
888
16,734
1,886
736
365
14,053
6,348
3,239
475
33
184
110
1,635
804
5,187
485
33
288
57
3,540
783
3,180
360
32
420
26
1,395
946
3,111
411
52
308
41
1,144
1,156
2,629
382
37
305
27
846
1,031
2,675
447
59
335
37
901
896
2,692
430
52
339
25
1,025
821
2,586
405
47
341
25
908
860
2,783
385
63
344
20
1,074
897
3,369
242
54
279
23
1,669
1,103
904
684
220
1,247
950
297
1,419
1,223
196
2,742
2,541
201
3,997
3,752
245
4,400
4,172
228
4,085
3,831
254
3,516
3,317
199
4,572
4,355
216
4,738
4,530
207
2.356
1.238
806
313
2,344
1,157
890
296
2,721
1,661
710
350
2,048
1,269
450
328
3,039
2,064
661
314
4,001
2,860
694
446
4,082
3,064
606
412
5,073
3,937
776
361
4,936
3,820
719
397
5,804
4,916
573
315
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the G e r m a n Democratic Republic, Hungary, Poland, and Romania.
3. Comprises Bahrain, Iran, Iraq, Kuwait, O m a n , Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, G a b o n , Libya, and Nigeria.
5. Asian, African, Middle Eastern, and European regional organizations, except
the Bank for International Settlements, which is included in " O t h e r Western
Europe."
A Liabilities and claims of banks in the United States were increased, beginning
in December 1981, by the shift from foreign branches to international banking
facilities in the United States of liabilities to, and claims on, foreign residents.
Bank-Reported. Data
3.18
A61
BANKS' O W N CLAIMS O N F O R E I G N E R S Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1982
Area and country
1979
1980
1981A
Apr.
May
June
Aug.'
July
Sept.
Oct.'
1 Total
133,943
172,592
251,035
288,353
301,247
314,381
322,831
328,555
339,120
334,090
2 Foreign countries
133,906
172,514
250,979
288,313
301,203
314,338
322,785
328,448
339,076
334,034
28,388
284
1,339
147
202
3,322
1,179
154
1,631
514
276
330
1,051
542
1,165
149
13,795
611
175
268
1,254
32,108
236
1,621
127
460
2,958
948
256
3,364
575
227
331
993
783
1,446
145
14,917
853
179
281
1,410
49,054
121
2,843
188
547
4,126
936
333
5,240
682
384
529
2,100
1,206
2,213
424
23,645
1,224
209
377
1,725
59,334
200
3,848
279
525
5,062
1,483
279
5,095
740
452
813
2,052
1,441
1,564
487
31,073
1,238
282
195
1,777
62,051
201
3,669
276
638
5,528
1,512
262
5,861
917
416
797
2,628
1,692
1,557
573
31,974
1,202
386
251
1,711
64,115
140
3,760
287
736
6,405
1,758
297
6,024
1,005
429
938
3,086
1,638
1,596
584
31,834
1,294
247
296
1,761
67,237
189
4,102
303
699
5,917
1,734
294
6,282
1,118
538
990
3,308
1,513
1,601
646
34,392
1,266
280
274
1,791
70,788
186
4,421
323
776
5,960
1,565
270
6,569
1,085
482
970
3,520
1,693
1,589
600
37,162
1,220
286
296
1,814
76,142
136
4,820
359
806
5,795
1,610
283
6,742
1,096
575
998
3,464
2,417
1,860
605
40,991
1,196
325
249
1,816
78,324
178
4,904
396
813
6,218
1,521
335
7,346
1,285
544
1,018
3,558
2,799
1,751
603
41,525
1,248
266
242
1,773
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 E u r o p e 1
22
U.S.S.R
23
Other Eastern E u r o p e 2
4,143
4,810
9,164
11,805
11,349
12,693
13,070
12,083
11,719
12,962
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 3
36
Jamaica 3
37
Mexico
38
Netherlands Antilles
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other Latin America and Caribbean
24 Canada
67,993
4,389
18,918
496
7,713
9,818
1,441
1,614
4
1,025
134
47
9,099
248
6,041
652
105
4,657
1,593
92,992
5,689
29,419
218
10,496
15,663
1,951
1,752
3
1,190
137
36
12,595
821
4,974
890
137
5,438
1,583
138,114
7,522
43,437
346
16,918
21,913
3,690
2,018
3
1,531
124
62
22,408
1,076
6,779
1,218
157
7,069
1,844
158,212
10,896
47,875
575
19,217
22,741
4,590
2,146
137
1,879
116
130
26,087
887
8,246
1,593
316
8,561
2,220
167,187
10,816
49,079
396
20,420
25,469
4,899
2,270
37
1,852
112
781
28,357
880
8,321
1,672
347
9,184
2,295
173,201
11,012
51,849
414
21,147
25,825
5,268
2,554
3
2,022
124
124
29,547
1,028
8,660
2,047
381
9,138
2,057
178,018
10,971
52,403
398
21,557
27,914
5,228
2,612
8
2,027
121
578
29,749
1,032
9,146
2,064
413
9,691
2,105
181,600
10,936
54,613
385
22,146
28,504
5,367
2,650
3
2,048
116
508
29,347
778
9,842
2,062
457
9,800
2,039
186,361
11,020
55,238
429
23,121
29,987
5,358
2,827
3
2,132
121
387
29,799
826
10,288
2,261
552
9,954
2,058
179,976
11,019
51,724
610
23,065
28,088
5,276
2,838
3
2,057
111
151
29,371
688
9,978
2,244
572
9,925
2,257
44 Asia
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle East oil-exporting countries 4
Other Asia
30,730
39,078
49,770
52,770
53,963
57,368
57,404
57,235
57,519
55,679
35
1,821
1,804
92
131
990
16,911
3,793
737
933
1,548
1,934
195
2,469
2,247
142
245
1,172
21,361
5,697
989
876
1,432
2,252
107
2,461
4,126
123
346
1,562
26,757
7,324
1,817
564
1,575
3,009
98
2,275
5,352
195
308
1,160
27,949
7,007
2,270
565
2,411
3,180
68
2,114
6,002
185
315
1,391
27,549
7,104
2,464
502
2,613
3,656
124
2,048
6,390
252
288
1,835
29,258
7,119
2,605
459
2,564
4,426
139
1,977
6,124
266
294
1,637
30,082
7,046
2,605
406
2,493
4,335
127
1,891
6,447
235
297
1,534
29,495
6,967
2,611
388
2,633
4,609
126
1,951
6,721
275
300
1,625
28,655
7,382
2,508
410
2,643
4,925
139
2,020
5,976
254
315
1,748
26,730
7,786
2,560
442
2,847
4,862
1,797
114
103
445
144
391
600
2,377
151
223
370
94
805
734
3,503
238
284
1,011
112
657
1,201
4,389
345
312
1,344
100
730
1,559
4,775
400
278
1,389
81
844
1,783
4,851
416
334
1,467
84
799
1,751
5,029
378
314
1,620
81
849
1,787
4,865
399
368
1,574
58
761
1,705
5,201
390
376
1,779
62
852
1,742
5,016
365
367
1,744
61
762
1,718
855
673
182
1,150
859
290
1,376
1,203
172
1,803
1,560
243
1,878
1,655
223
2,111
1,806
305
2,028
1,700
328
1,878
1,534
344
2,135
1,803
332
2,078
1,708
370
36
78
56
40
43
43
45
106
44
56
45
46
47
48
49
50
51
52
53
54
55
56
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries 5
63
Other
64 Other countries
65
Australia
66
All other
67 Nonmonetary international and regional
organizations 6
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Democratic Republic, Hungary, Poland, and Romania.
3. Included in " O t h e r Latin America and C a r i b b e a n " through March 1978.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United A r a b Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in " O t h e r
Western E u r o p e . "
NOTE. Data for period prior to April 1978 include claims of banks' domestic
customers on foreigners.
A Liabilities and claims of banks in the United States were increased, beginning
in December 1981, by the shift from foreign branches to international banking
facilities in the United States of liabilities to, and claims on, foreign residents.
A62
3.19
International Statistics • December 1982
BANKS' O W N A N D D O M E S T I C CUSTOMERS' CLAIMS ON F O R E I G N E R S Reported by Banks in the
United States
Payable in U . S . Dollars
Millions of dollars, end of period
1982
Type of claim
1979
1980
1981A
Apr.
May
June'
July
Aug.'
Sept.
1 Total
154,030
198,698
286,404
2
3
4
5
6
7
8
133,943
15,937
47,428
40,927
6,274
34,654
29,650
172,592
20,882
65,084
50,168
8,254
41,914
36,459
251,035
31,294
96,639
74,104
22,704
51,400
48,998
20,088
955
26,106
885
35,368
1,378
40,712
1,426
37,076
1,390
13,100
6,032
15,574
9,648
25,752
8,238
31,966
7,320
28,577
7,110
18,021
22,714
29,565
33,180
35,103
22,305
24,511
39,820
Banks' own claims on foreigners
Foreign public borrowers
Own foreign offices 1
Unaffiliated foreign banks
Deposits
Other
All other foreigners
9 Claims of banks' domestic customers 2 ..
355,093
288,353
35,039
106,988
90,823
29,338
61,485
55,502
301,247
37,630
108,699
97,175
33,725
63,450
57,743
314,381
40,001
113,722
101,756
35,667
66,090
58,901
Oct.P
376,196
322,831
40,684
114,098
108,313
40,028
68,285
59,736
328,555
41,678
118,563
109,133
40,945
68,189
59,181
339,120
42,708
125,339
111,263
40,513
70,750
59,811
334,090
42,581
116,876
114,290
42,070
72,220
60,343
11 Negotiable and readily transferable
12 Outstanding collections and other claims
13 MEMO: Customer liability on
Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States 4
41,480
1. U.S. banks: includes amounts due from own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign
banks: principally amounts due from head office or parent foreign bank, and foreign
branches, agencies, or wholly owned subsidiaries of head office or parent foreign
bank.
2. Assets owned by customers of the reporting bank located in the United States
that represent claims on foreigners held by reporting banks for the account of their
domestic customers.
3. Principally negotiable time certificates of deposit and bankers acceptances.
3.20
44,030
44,530
45,213
43,698
43,575
n.a.
4. Includes demand and time deposits and negotiable and nonnegotiable certificates of deposit denominated in U.S. dollars issued by banks abroad. For description of changes in data reported by nonbanks, see July 1979 BULLETIN, p. 550.
^ Liabilities and claims of banks in the United States were increased, beginning
in December 1981, by the shift from foreign branches to international banking
facilities in the United States of liabilities to, and claims on, foreign residents.
NOTE. Beginning April 1978, data for banks' own claims are given on a monthly
basis, but the data for claims of banks' own domestic customers are available on
a quarterly basis only.
B A N K S ' O W N CLAIMS O N U N A F F I L I A T E D F O R E I G N E R S Reported by Banks in the United States
Payable in U . S . Dollars
Millions of dollars, end of period
1979
1980
Dec.
Dec.
Sept
86,181
106,748
122,477
153,932
174,618
200,515
213,061
65,152
7,233
57,919
21,030
8,371
12,659
82,555
9,974
72,581
24,193
10,152
14,041
94,957
12,978
81,979
27,520
12,564
14,956
115,908
15,192
100,715
38,025
15,645
22,380
133,019
16,603
116,416
41,598
16,843
24,755
151,592
19,439
132,153
48,923
19,995
28,928
160,949
20,138
140,811
52,112
21,928
30,184
15,235
1,777
24,928
21,641
1,077
493
18,715
2,723
32,034
26,686
1,757
640
23,015
3,959
35,590
29,295
2,324
774
27,893
4,634
48,473
31,508
2,457
943
34,246
5,807
58,243
30,585
2,890
1,249
38,904
6,593
67,967
33,603
3,308
1,218
44,555
6,975
71,536
33,079
3,624
1,180
4,160
1,317
12,814
1,911
655
173
5,118
1,448
15,075
1,865
507
179
6,424
1,347
17,478
1,550
548
172
8,095
1,774
25,088
1,902
899
267
8,435
1,863
27,684
2,245
1,056
315
9,356
2,345
32,857
2,465
1,276
625
10,576
1,867
34,258
3,370
1,351
690
1981
1982
Maturity; by borrower and area
1 ToUl
2
3
4
5
6
7
8
9
10
11
12
13
By borrower
Maturity of 1 year or less 1
Foreign public borrowers
All other foreigners
Maturity of over 1 year 1
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less 1
Europe
Canada
Latin America and Caribbean
Africa
All other 2
Maturity of over 1 year 1
14
Europe
15
Canada
16
Latin America and Caribbean
17
18
Africa
19
All other 2
1. Remaining time to maturity.
2. Includes nonmonetary international and regional organizations.
Dec.A
Mar.
June
Sept.?
A Liabilities and claims of banks in the United States were increased, beginning
in December 1981, by the shift f r o m foreign branches to international banking
facilities in the United States of liabilities to, and claims on, foreign residents.
Nonbank-Reported
Data
A63
CLAIMS ON F O R E I G N C O U N T R I E S Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks 1
3.21
Billions of dollars, end of period
1978 2
1982
1981
1980
Area or country
1979
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
June
Sept.''
20.3
24.7
339.3
352.0
372.1
382.8
399.8
412.3
411.8
421.9
433.4
12.2
.8
.7
3.1
.7
.5
.5
.2
8.9
2.0
.3
12.3
.8
1.2
3.3
.7
1.1
.5
.1
8.2
1.3
1.3
158.8
13.6
13.9
12.9
7.2
4.4
2.8
3.4
66.7
7.7
26.1
162.1
13.0
14.1
12.1
8.2
4.4
2.9
5.0
67.4
8.4
26.5
168.5
13.6
14.5
13.3
7.7
4.6
3.2
5.1
68.5
8.9
29.1
168.3
13.8
14.7
12.1
8.4
4.2
3.1
5.2
67.0
10.8
28.9
172.2
14.1
16.0
12.7
8.6
3.7
3.4
5.1
68.8
11.8
28.0
173.9
13.3
15.3
12.9
9.8
4.0
3.7
5.5
69.1
11.0
29.4
172.2
13.1
15.8
12.5
8.9
4.0
4.0
5.3
68.8
11.4
28.4
171.1
13.9
16.3
12.7
8.8
4.1
3.9
5.1
67.1
10.9
28.4
173.4
13.5
15.7
12.2
9.7
3.8
4.7
5.0
68.8
10.7
29.2
13 Other developed countries
14
Austria
15
Denmark
16
Finland
17
Greece
18
Norway
19
Portugal
20
Spain
21
Turkey
22
Other Western E u r o p e
23
South Africa
24
Australia
.4
.1
.2
.3
.6
.3
.2
.9
.3
2.1
.6
.6
.4
.0
.1
.2
.7
.3
.3
.9
.1
2.4
.3
.5
20.6
1.8
2.2
1.2
2.6
2.4
.7
4.2
1.3
1.7
1.2
1.2
21.6
1.9
2.3
1.4
2.8
2.6
.6
4.4
1.5
1.7
1.1
1.3
23.5
1.8
2.4
1.4
2.7
2.8
.6
5.5
1.5
1.8
1.5
1.5
24.8
2.1
2.3
1.3
3.0
2.8
.8
5.7
1.4
1.8
1.9
1.7
26.4
2.2
2.5
1.4
2.9
3.0
1.0
5.8
1.5
1.9
2.5
1.9
28.4
1.9
2.3
1.7
2.8
3.1
1.1
6.6
1.4
2.1
2.8
2.5
30.4
2.1
2.5
1.6
2.8
3.2
1.1
7.1
1.5
2.2
3.2
3.1
31.7
2.1
2.6
1.6
2.5
3.2
1.5
7.2
1.4
2.2
3.4
4.0
32.7
2.0
2.5
1.8
2.5
3.4
1.6
7.7
1.5
2.1
3.6
4.0
25 O P E C countries 3
26
Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
3P
African countries
1.1
.6
2.1
.1
4.2
.3
.3
.7
2.2
.1
3.5
.3
21.4
1.9
8.5
1.9
6.7
2.4
22.7
2.1
9.1
1.8
6.9
2.8
21.7
2.0
8.3
2.1
6.7
2.6
22.2
2.0
8.8
2.1
6.8
2.6
23.5
2.1
9.2
2.5
7.1
2.6
24.4
2.2
9.6
2.5
7.6
2.5
24.8
2.3
9.4
2.7
8.2
2.2
25.4
2.3
9.4
2.7
8.6
2.3
27.2
2.3
10.2
2.9
9.1
2.7
1 Total
2 G - 1 0 countries and Switzerland
Belgium-Luxembourg
3
4
France
5
Germany
6
Italy
7
Netherlands
8
Sweden
9
Switzerland
10
United Kingdom
11
Canada
12
Japan
14.6
16.7
73.0
77.4
82.2
84.8
90.2
95.8
94.8
100.2
104.3
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
1.0
2.7
.7
.9
3.2
.8
1.3
1.7
2.4
.8
1.1
3.5
.4
1.4
7.6
15.8
3.2
2.4
14.4
1.5
3.9
7.9
16.2
3.7
2.6
15.9
1.8
3.9
9.5
17.0
4.0
2.4
17.0
1.8
4.7
8.5
17.5
4.8
2.5
18.2
1.7
3.8
9.3
17.7
5.5
2.5
20.0
1.8
4.2
9.3
19.0
5.8
2.6
21.5
2.0
4.1
9.4
19.0
5.7
2.2
22.5
1.8
4.1
9.0
20.4
6.0
2.5
24.2
2.3
3.9
9.2
22.4
6.2
2.8
25.1
2.6
4.5
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.0
.9
.0
.6
1.5
.1
.1
.6
.1
.0
1.1
.1
.6
2.6
.2
.6
.8
.3
.1
4.1
.2
1.1
7.3
1.1
4.8
1.5
.5
.2
4.2
.3
1.5
7.1
1.1
5.1
1.6
.6
.2
4.4
.3
1.3
7.7
1.2
4.8
1.6
.5
.2
4.6
.3
1.8
8.8
1.4
5.1
1.5
.7
.2
5.1
.3
1.5
8.6
1.4
5.6
1.4
.8
.2
5.1
.3
2.0
9.4
1.7
6.0
1.5
1.0
.2
5.1
.5
1.6
8.6
1.7
5.8
1.3
1.0
.3
5.0
.5
2.1
8.9
1.9
6.2
1.3
1.2
.2
4.9
.5
1.9
9.4
1.8
6.0
1.3
1.3
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 4
.1
.1
.1
.2
.1
.1
.1
.3
.6
.6
.2
2.1
.8
.7
.2
2.1
.8
.6
.2
2.2
.7
.5
.2
2.1
1.0
.7
.2
2.2
1.1
.7
.2
2.3
1.3
.7
.2
2.3
1.3
.7
.2
2.3
1.3
.8
.0
2.3
52 Eastern E u r o p e
53
U.S.S.R
54
Yugoslavia
55
Other
1.2
.3
.3
.5
1.7
.3
.6
.9
7.3
.5
2.1
4.7
7.4
.4
2.3
4.6
7.7
.4
2.4
4.8
7.7
.5
2.5
4.8
7.7
.4
2.5
4.7
7.7
.6
2.5
4.7
7.0
.4
2.4
4.2
6.4
.4
2.3
3.7
6.4
.3
2.2
3.8
23.4
11.9
.1
.6
.1
2.9
.0
3.8
3.8
.4
30.9
13.6
.2
4.6
.3
4.9
.0
3.2
4.2
.5
44.6
13.2
.6
10.1
1.3
5.6
.2
7.5
5.6
.4
47.0
13.7
.6
10.6
2.1
5.4
.2
8.1
5.9
.3
53.7
15.5
.7
11.9
2.3
6.5
.2
8.4
7.3
.9
59.3
17.9
.7
12.6
2.4
6.9
.2
10.3
8.1
.3
61.7
21.3
.8
12.1
2.2
6.7
.2
10.3
8.0
.1
63.6
18.9
.7
12.6
3.2
7.5
.2
11.8
8.6
.1
64.4
19.7
.7
11.5
3.2
7.0
.2
12.8
9.2
.1
69.5
22.9
.7
11.6
3.0
7.1
.2
14.3
9.6
.1
69.7
20.2
.8
13.0
3.3
7.7
.1
14.9
9.7
.0
.3
.4
13.7
14.0
14.9
15.7
18.2
18.7
18.2
18.2
19.8
31 N o n - O P E C developing countries
56 Offshore banking centers
57
Bahamas
58
Bermuda
59
Cayman Islands and other British West Indies
60
Netherlands Antilles
61
Panama 5
62
Lebanon
63
Hong Kong
64
Singapore
65
Others 6
66 Miscellaneous and unallocated 7
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. T o 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). However,
see also footnote 2.
2. Beginning with data for June 1978, the claims of the U.S. offices
in this table include only banks' own claims payable in dollars. For earlier dates
the claims of the U.S. offices also include customer claims and foreign currency
claims (amounting in June 1978 to $10 billion).
3. In addition to the Organization of Petroleum Exporting Countries shown
individually, this group includes other members of O P E C (Algeria, Gabon, Iran,
Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and U n i t e d Arab Emirates) as
well as Bahrain and O m a n (not formally members of O P E C ) .
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.
A64
International Statistics • December 1982
3.22
LIABILITIES TO U N A F F I L I A T E D F O R E I G N E R S Reported by Nonbanking Business Enterprises in the
United States 1
Millions of dollars, end of period
1981
Type, and area or country
1979
1980
1982
1981
Sept.
Dec.
Mar.
June
1 Total
17,383
22,125
22,001
23,347
22,001
21,711
20,496
2 Payable in dollars
3 Payable in foreign currencies
14,288
3,095
18,394
3,731
18,367
3,635
20,218
3,129
18,367
3,635
19,026
2,685
17,821
2,675
By type
4 Financial liabilities
5
Payable in dollars
6
Payable in foreign currencies
7,476
5,192
2,284
11,282
8,494
2,788
11,723
9,130
2,593
12,894
10,592
2,302
11,723
9,130
2,593
11,930
10,043
1,887
9,670
7,774
1,896
7 Commercial liabilities
Trade payables
8
9
Advance receipts and other liabilities
9,906
4,591
5,315
10,843
4,940
5,903
10,278
4,647
5,631
10,453
4,364
6,089
10,278
4,647
5,631
9,782
4,022
5,760
10,826
4,967
5,859
9,095
811
9,900
943
9,237
1,041
9,626
827
9,237
1,041
8,983
798
10,047
779
4,649
322
175
497
829
170
2,477
6,467
465
327
582
681
354
3,923
6,667
431
636
491
738
715
3,531
7,824
482
846
430
664
465
4,773
6,667
431
636
491
738
715
3,531
7,584
534
856
503
735
707
4,143
5,795
499
531
439
503
661
3,027
10
11
12
13
14
15
1ft
17
18
Payable in dollars
Payable in foreign currencies
By area or country
Financial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
532
964
958
977
958
914
758
1,483
375
81
18
514
121
72
3,103
964
1
23
1,452
99
81
3,114
1,279
7
22
1,045
102
98
3,247
1,019
6
20
1,395
107
90
3,114
1,279
7
22
1,045
102
98
2,968
1,095
6
27
1,123
67
97
2,605
1,003
7
24
858
83
100
804
726
31
723
644
38
957
792
47
814
696
30
957
792
47
450
293
63
498
340
66
Africa
Oil-exporting countries 3
4
1
11
1
3
0
3
1
3
0
2
0
3
0
All other 4
4
15
24
29
24
12
11
3,707
137
467
545
227
316
1,077
4,402
90
582
679
219
499
1,209
3,771
67
573
545
221
424
884
3,961
78
575
590
238
569
925
3,771
67
573
545
221
424
884
3,422
50
504
473
232
400
824
3,661
47
657
457
247
412
849
19
Canada
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
27
28
29
30
31
32
33
34
35
36
37
38
39
Japan
Middle East oil-exporting countries 2
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
40
Canada
41
42
43
44
45
46
47
Latin America
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
48
49
50
Japan
Middle East oil-exporting countries 2
924
876
870
834
870
884
1,116
1,323
69
32
203
21
257
301
1,259
8
75
111
35
326
319
986
2
67
67
2
293
276
1,087
3
113
61
11
345
273
986
2
67
67
2
293
276
804
22
71
83
27
210
194
1,399
20
102
62
1
727
219
2,991
583
1,014
3,034
802
890
3,285
1,094
910
3,221
775
881
3,285
1,094
910
3,404
1,090
998
3,286
1,060
954
51
52
Africa
Oil-exporting countries 3
728
384
817
517
703
344
757
355
703
344
664
247
733
340
53
All other 4
233
456
664
593
664
604
630
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 A r a b Emirates (Trucial States).
3. Comprises Algeria, G a b o n , Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
Nonbank-Reported
3.23
CLAIMS O N U N A F F I L I A T E D F O R E I G N E R S
United States 1
Millions of dollars, end of period
Data
A65
Reported by Nonbanking Business Enterprises in the
1981
Type, and area or country
1979
1980
1982
1981
Sept.
Mar.
Dec.
June
1 Total
31,375
34,743
35,790
34,544
35,790
30,080
30,386
2 Payable in dollars
3 Payable in foreign currencies
28,183
3,193
31,803
2,940
32,206
3,584
31,541
3,003
32,206
3,584
27,474
2,606
27,921
2,465
By type
4 Financial claims
5
Deposits
6
Payable in dollars
7
Payable in foreign currencies
8
Other financial claims
9
Payable in dollars
10
Payable in foreign currencies
18,484
12,847
11,931
916
5,637
3,810
1,826
20,057
14,220
13,445
775
5,837
4,154
1,683
20,906
14,694
14,080
614
6,212
3,758
2,454
19,586
13,775
13,048
727
5,811
4,116
1,695
20,906
14,694
14,080
614
6,212
3,758
2,454
17,658
12,590
12,133
457
5,068
3,439
1,629
18,368
13,463
13,112
351
4,905
3,348
1,557
11 Commercial claims
12
Trade receivables
13
Advance payments and other claims
12,892
12,188
704
14,686
13,953
733
14,884
13,944
940
14,959
14,048
911
14,884
13,944
940
12,422
11,462
960
12,019
10,960
1,058
14
15
12,441
450
14,203
483
14,368
516
14,377
582
14,368
516
11,902
520
11,461
557
6,191
32
177
409
53
73
5,111
6,179
195
337
230
51
59
4,992
4,592
43
325
244
50
87
3,505
4,846
26
348
320
68
100
3,659
4,592
43
325
244
50
87
3,505
4,511
16
422
197
79
53
3,502
4,624
13
418
190
81
63
3,577
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
4,997
5,064
6,624
6,032
6,624
4,891
4,381
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
6,293
2,765
30
163
2,011
157
143
7,823
3,479
135
96
2,755
208
137
8,589
3,902
18
30
3,500
313
148
7,747
3,262
15
66
3,313
283
143
8,589
3,902
18
30
3,500
313
148
7,377
3,482
27
49
2,797
281
130
8,243
3,792
42
76
3,487
274
134
706
199
16
722
189
20
882
363
37
623
111
29
882
363
37
680
267
36
870
397
33
253
49
238
26
168
46
222
41
168
46
164
43
156
41
44
32
51
116
51
34
94
4,909
202
727
589
298
272
901
5,512
233
1,129
591
318
353
928
5,329
234
776
554
303
427
967
5,347
220
767
580
308
404
1,032
5,329
234
776
554
303
427
967
4,375
245
696
452
227
354
1,060
4,241
209
634
391
296
383
893
31
32
33
Japan
Middle East oil-exporting countries 2
34
35
Africa
Oil-exporting countries 3
36
All o t h e r 4
37
38
39
40
41
42
43
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
52
53
54
Japan
Middle East oil-exporting countries 2
859
914
967
1,017
967
939
707
2,879
21
197
645
16
708
343
3,765
21
108
861
34
1,101
410
3,464
12
223
668
12
1,020
422
3,726
18
241
726
13
983
454
3,464
12
223
668
12
1,020
422
2,905
80
212
417
23
761
396
2,763
30
226
419
14
748
381
3,451
1,177
765
3,522
1,052
825
3,914
1,244
901
3,700
1,129
829
3,914
1,244
901
3,152
1,158
757
3,297
1,211
793
55
56
Africa
Oil-exporting countries 3
554
133
655
156
750
152
717
154
750
152
587
142
597
132
57
All other 4
240
318
459
451
459
463
413
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 A r a b Emirates (Trucial States).
3. Comprises Algeria, G a b o n , Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
A66
3.24
International Statistics • December 1982
F O R E I G N T R A N S A C T I O N S IN S E C U R I T I E S
Millions of dollars
1982
Transactions, and area or country
1980
1982
1981
Jan.Oct.
Apr.
May
Aug.r
July
June
Sept.
Oct.P
U.S. corporate securities
STOCKS
1 Foreign purchases
2 Foreign sales
40,298
34,870
40.672
34,844
30,643
28,031
2.359
2.101
2,622
2,186
2.166
1,863
2,707
2,695
3,183
2,650
4,463
4,630
5,966
5,660
3 Net purchases, or sales ( - )
5,427
5,827
2,613
258
436
303
12
532
-167
306
4 Foreign countries
5,409
5,803
2,562
252
429
299
6
530
-170
296
3,116
492
169
-328
310
2,528
887
148
1,206
16
- 1
38
3,662
900
-22
42
288
2.235
783
-30
1.140
287
7
-46
1,876
-179
170
-59
-541
2,584
8
141
515
-78
-3
103
167
33
29
-9
-66
176
0
53
61
-40
0
12
306
-48
43
36
6
279
-10
22
104
-21
1
27
158
-25
11
23
-85
225
2
25
73
39
-3
6
303
0
21
0
-34
309
-36
-69
-137
-57
1
0
272
-7
-12
12
-53
366
73
121
101
-43
1
5
-262
-45
-42
-61
-137
73
116
-153
137
-15
1
6
190
-30
47
-102
-118
449
5
142
-98
22
0
35
18
24
50
6
6
4
6
2
3
10
15,425
9,964
17.290
12.247
17,197
15,692
2,217
1,485
1,929
1,199
1,483
1,153
1,738
1,630
1,513
1,760
2,098
2,312
2,737
2,949
5
6
7
8
9
10
11
12
13
14
15
16
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
17 Nonmonetary international and
regional organizations
BONDS2
18 Foreign purchases
19 Foreign sales
20 Net purchases, or sales ( - )
5,461
5,043
1,505
733
730
330
107
-247
-214
-212
21 Foreign countries
5,526
4,976
1,533
674
690
356
72
-111
-178
-253
22
23
24
25
26
27
28
29
30
31
32
33
1,576
129
212
-65
54
1,257
135
185
3,499
117
5
10
1,356
11
848
70
108
181
-12
132
3.465
44
-1
-7
2,007
124
2,067
35
130
-418
20
140
-572
-51
-19
8
540
20
396
14
46
59
46
-8
126
-18
-13
1
704
46
500
11
48
91
23
15
-112
61
0
0
244
23
115
5
12
67
21
61
22
9
0
-1
187
5
256
-3
-22
-63
1
18
-68
-66
0
0
-27
-18
106
0
32
-109
4
18
-78
-31
0
2
-349
23
87
-10
-24
-450
5
20
193
-52
0
5
379
-16
190
-2
-4
189
-152
-15
-435
-30
0
0
-65
66
-27
59
40
-26
35
-136
-36
41
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
34 Nonmonetary international and
regional organizations
Foreign securities
35 Stocks, net purchases, or sales ( - )
36
Foreign purchases
37
Foreign sales
-2,136
7.893
10,029
-140
9.262
9,402
-309
5.449
5,758
-63
385
448
-115
486
601
79
619
540
44
452
409
11
532
520
-164
547
711
-311
701
1,012
38 Bonds, net purchases, or sales ( - )
39
Foreign purchases
40
Foreign sales
- 1,000
17,084
18.084
-5,446
17,549
22,995
-5,375
24,237
29,611
-40
2,255
2,295
461
2,755
2,294
-762
2,033
2,795
-614
2,293
2,907
-1,353
3,279
4,632
-996
3,258
4,255
- 1,295
3,058
4,353
41 Net purchases, or sales (—), of stocks and bonds .
-3,136
-5,586
-5,684
-103
346
-684
-571
-1,342
-1,160
-1,606
42
43
44
45
46
47
48
49
-4,013
-1,108
-1,948
87
-1,147
24
79
-4,574
-687
-3,698
69
-295
-53
90
-4,474
-1,239
-2.174
424
-1.090
-17
-379
-38
-127
120
202
-215
- 17
0
126
-40
76
144
-53
- 1
- 1
-305
-425
-81
76
127
0
-2
-578
-21
-265
3
-303
3
6
-1,144
-128
-678
49
-433
17
29
-653
-184
-272
-44
261
1
-416
-1,214
-520
-179
-234
-284
0
3
876
-1,012
-1,210
-65
219
-379
7
-198
-507
-392
Foreign countries
Europe
Canada
Latin America and Caribbean
Asia
Africa
Other countries
Nonmonetary international and
regional organizations
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
O m a n , Qatar, Saudi Arabia, and United A r a b 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 securities sold
abroad by U.S. corporations organized to finance direct investments abroad.
Investment Transactions and Discount Rates
3.25
M A R K E T A B L E U . S . T R E A S U R Y B O N D S A N D NOTES
A67
Foreign Holdings and Transactions
Millions of dollars
1982
1982
Country or area
1980
1981
Jan.Oct.
Apr.
May
June
July
Aug.
Sept.
Oct.''
Holdings (end of period) 1
1 Estimated total 2
57,549
70,201
77,268
77,836
78,199
79,615
80,437
82,099
83,776
2 Foreign countries 2
52,961
64,530
71,925
72,950
73,005
75,343
76,717
78,386
79,143
3 Europe 2
4
Belgium-Luxembourg
5
Germany 2
6
Netherlands
7
Sweden
8
Switzerland 2
9
United Kingdom
10
Other Western E u r o p e
11
Eastern E u r o p e
12 Canada
24,468
77
12,327
1,884
595
1,485
7,323
777
0
449
23,976
543
11,861
1,955
643
846
6,709
1,419
0
514
26,393
709
13,231
2,139
662
1,157
6,737
1,757
0
473
26,021
340
12,974
2,152
655
1,134
6,811
1,954
0
506
25,738
152
13,022
2,176
652
1,039
6,674
2,023
0
410
26,442
155
13,535
2,137
650
1,016
6,922
2,028
0
446
27,717
576
13,959
2,302
644
1,100
7,124
2,012
0
353
28,790
551
14,528
2,333
640
1,234
7,345
2,160
0
434
28,983
834
14,501
2,315
650
1,266
7,210
2,207
0
488
13
14
15
16
17
18
19
20
999
292
285
421
26,112
9,479
919
14
736
286
319
131
38,671
10,780
631
2
886
306
383
196
43,750
11,381
403
22
938
296
437
204
45,060
11,396
405
21
910
253
432
224
45,516
11,137
405
26
848
229
402
217
47,179
11,289
405
23
1,166
222
611
333
47,165
11,247
305
12
1,207
221
774
211
47,734
11,394
180
41
1,089
204
660
225
48,344
11,380
180
60
4,588
4,548
36
5,671
5,637
1
5,343
5,278
-4
4,886
4,822
-4
5,194
5,123
-4
4,272
4,167
-4
3,720
3,629
-4
3,713
3,519
-4
4,633
4,378
-4
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
All other
21 Nonmonetary international and regional organizations
22
International
23
Latin American regional
Transactions (net purchases, or sales ( - ) during period)
24 Total 2
6,066
12,652
13,575
1,474
568
362
1,416
822
1,663
1,677
25 Foreign countries 2
26
Official institutions
27
O t h e r foreign 2
28 Nonmonetary international and regional organizations..
6,906
3,865
3,040
-843
11,568
11,694
-127
1,085
14,613
12,452
2,161
-1,038
1,674
812
862
-200
1,025
1,474
-448
-457
54
318
-264
309
2,338
2,792
-454
-922
1,374
367
1,007
-553
1,669
1,580
90
-8
757
611
146
920
MEMO: Oil-exporting countries
29 Middle East 3
30 Africa 4
7,672
327
11,156
-289
7,593
-452
906
2
907
2
924
0
1,313
0
257
-100
226
-125
198
0
1. Estimated official and private holdings of marketable U.S. Treasury securities
with an original maturity of more than 1 year. Data are based on a benchmark
survey of holdings as of Jan. 31, 1971, and monthly transactions reports. Excludes
nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign
countries.
3.26
2. Beginning December 1978, includes U.S. Treasury notes publicly issued to
private foreign residents denominated in foreign currencies.
3. Comprises Bahrain, Iran, Iraq, Kuwait, O m a n , Q a t a r , Saudi Arabia, and
United A r a b Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Rate on Nov. 30, 1982
Rate on Nov. 30, 1982
Country
Country
Percent
Austria ..
Belgium..
Brazil
Canada ..
Denmark
5.75
11.5
49.0
10.97
10.0
Percent
Month
effective
Oct.
Nov.
Mar.
Nov.
Nov.
1982
1982
1981
1982
1980
France 1
Germany, Fed. Rep. of
Italy
Japan
Netherlands
1. As of the end of February 1981, the rate is that at which the Bank of France
discounts Treasury bills for 7 to 10 days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank
Rate on Nov. 30, 1982
Country
either
12.75
6.0
18.0
5.5
5.5
Percent
Month
effective
Nov.
Oct.
Aug.
Dec.
Nov.
1982
1982
1981
1981
1982
Norway
Switzerland
_
United Kingdom 2
Venezuela
9.0
5.0
13.0
discounts 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.
A68
3.27
International Statistics • December 1982
F O R E I G N S H O R T - T E R M INTEREST R A T E S
Percent per annum, averages of daily figures
1982
Country, or type
1979
1980
1981
May
1
2
3
4
5
6
7
8
9
10
July
June
Aug.
Sept.
Oct.
Nov.
Eurodollars
United Kingdom
Canada
Germany
Switzerland
11.96
13.60
11.91
6.64
2.04
14.00
16.59
13.12
9.45
5.79
16.79
13.86
18.84
12.05
9.15
14.53
13.31
15.46
9.12
3.80
15.45
12.96
16.84
9.22
5.39
14.37
12.35
16.23
9.41
4.32
11.57
11.08
14.76
8.94
4.07
11.74
10.84
13.57
8.13
3.97
10.43
9.74
12.14
7.55
3.66
9.77
9.30
11.08
7.24
3.76
Netherlands
France
Italy
Belgium
Japan
9.33
9.44
11.85
10.48
6.10
10.60
12.18
17.50
14.06
11.45
11.52
15.28
19.98
15.28
7.58
8.62
16.17
20.59
15.00
6.80
8.75
15.67
20.51
15.38
7.14
8.95
14.64
20.18
15.22
7.15
8.66
14.43
19.52
14.00
7.14
7.85
14.09
18.56
13.06
7.19
7.09
13.51
18.57
12.75
6.97
6.36
12.98
19.05
12.50
6.98
NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate.
3.28
FOREIGN EXCHANGE RATES
Currency units per dollar
1982
Country/currency
1979
1980
1981
June
July
Aug.
Sept.
Oct.
Nov.
1
2
3
4
5
6
7
8
9
10
Argentina/peso
Australia/dollar 1
Austria/schilling
Belgium/franc
Brazil/cruzeiro
Canada/dollar
Chile/peso
China, P.R./yuan
Colombia/peso
Denmark/krone
n.a.
111.77
13.387
29.342
n.a.
1.1603
n.a.
n.a.
n.a.
5.2622
n.a.
114.00
12.945
29.237
n.a.
1.1693
n.a.
n.a.
n.a.
5.6345
n.a.
114.95
15.948
37.194
92.374
1.1990
n.a.
1.7031
n.a.
7.1350
15025.00
103.23
17.114
6.183
167.70
1.2756
43.373
1.9014
63.318
8.3481
19671.43
101.09
17.342
47.029
177.97
1.2699
47.228
1.9300
65.539
8.5402
21172.73
97.83
17.431
47.483
188.25
1.2452
54.941
1.9432
65.179
8.6482
25961.90
95.820
17.597
48.300
201.73
1.2348
62.643
1.9567
65.921
8.8038
29487.50
94.35
17.797
49.103
215.34
1.2301
66.770
1.9887
66.856
8.9192
39200.00
94.27
17.947
49.600
228.51
1.2262
69.050
2.0002
68.168
8.9595
11
12
13
14
15
16
17
18
19
20
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee
Indonesia/rupiah
Iran/rial
Ireland/pound 1
Israel/shekel
3.8886
4.2566
1.8342
n.a.
n.a.
8.1555
n.a.
n.a.
204.65
n.a.
3.7206
4.2250
1.8175
n.a.
n.a.
7.8866
n.a.
n.a.
205.77
n.a.
4.3128
5.4396
2.2631
n.a.
5.5678
8.6807
n.a.
79.324
161.32
n.a.
4.6763
6.5785
2.4292
67.795
5.8669
9.4668
654.98
n.a.
141.92
23.179
4.7278
6.8560
2.4662
69.434
5.9025
9.5633
659.18
n.a.
139.48
25.320
4.7515
6.9285
2.4813
70.165
6.0598
9.5741
662.11
n.a.
138.54
26.940
4.8014
7.0649
2.5055
70.946
6.1253
9.6495
662.75
n.a.
136.53
28.922
5.3480
7.1557
2.5320
71.948
6.6038
9.7005
670.31
n.a.
134.35
29.860
5.5263
7.2152
2.5543
72.889
6.6724
9.7968
680.92
n.a.
132.91
31.344
21
22
23
24
25
26
27
28
29
30
Italy/lira
Japan/yen
Malaysia/ringgit
Mexico/peso
Netherlands/guilder
New Zealand/dollar 1
Norway/krone
Peru/sol
Philippines/peso
Portugal/escudo
831.10
219.02
2.1721
22.816
2.0072
102.23
5.0650
n.a.
n.a.
48.953
856.20
226.63
2.1767
22.968
1.9875
97.34
4.9381
n.a.
n.a.
50.082
1138.60
220.63
2.3048
24.547
2.4998
86.848
5.7430
n.a.
7.8113
61.739
1358.43
251.20
2.3392
47.716
2.6848
74.951
6.1869
656.11
8.4511
78.477
1382.26
255.03
2.3554
48.594
2.7239
73.990
6.3557
693.56
8.4802
84.514
1392.60
259.04
2.3528
90.187
2.7295
73.217
6.6785
730.97
8.5142
85.914
1411.19
263.29
2.3610
101.86
2.7444
72.419
6.8999
772.08
8.6521
87.702
1439.94
271.61
2.3688
108.83
2.7608
71.431
7.1735
819.14
8.7760
89.652
1468.84
264.09
2.3647
130.61
2.7861
71.092
7.2397
878.66
8.8733
91.911
31
32
33
34
35
36
37
38
39
40
Singapore/dollar
South Africa/rand/ 1
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Thailand/baht
United Kingdom/pound 1
Venezuela/bolivar
n.a.
118.72
n.a.
67.158
15.570
4.2892
1.6643
n.a.
212.24
n.a.
n.a.
128.54
n.a.
71.758
16.167
4.2309
1.6772
n.a.
232.58
n.a.
2.1053
114.77
n.a.
92.396
18.967
5.0659
1.9674
21.731
202.43
4.2781
2.1379
89.57
738.30
109.215
20.750
6.0244
2.0789
23.000
175.63
4.2953
2.1464
87.20
743.06
111.57
20.895
6.1159
2.0960
23.000
173.54
4.2951
2.1594
86.77
744.45
112.079
20.895
6.1441
2.1119
23.000
172.50
4.2981
2.1671
86.830
743.61
113.049
20.918
6.2313
2.1418
23.000
171.20
4.3006
2.1984
86.20
743.65
115.20
20.898
7.1543
2.1736
23.000
169.62
4.2976
2.2123
87.77
745.60
119.09
21.009
7.5095
2.1931
23.000
163.21
4.2996
88.09
87.39
102.94
116.97
118.91
119.63
120.93
123.16
124.27
MEMO:
United States/dollar 2
1. Value in U.S. cents.
2. Index of weighted-average exchange value of U.S. dollar against currencies of other G - 1 0 countries plus Switzerland. March 1973 = 100.
Weights are 1972-76 global trade of each of the 10 countries. Series
revised as of August 1978. For description and back data, see "Index of
the Weighted-Average Exchange Value of the U.S. Dollar: Revision" on page
700 of the August 1978 BULLETIN.
NOTE. Averages of certified noon buying rates in New York for cable transfers.
A69
Guide to Tabular Presentation,
Statistical Releases, and Special Tables
GUIDE
TO TABULAR
PRESENTATION
Symbols and Abbreviations
c
e
p
r
*
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when
about half of the figures in that column are changed.)
Amounts insignificant in terms of the last decimal place
shown in the table (for example, less than 500,000 when
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships,
partnership: and corporations
Real estate investment ttrusts
Repurchase agreements
Standard metropolitan statistical areas
General Information
Minus signs are used to indicate (1) a decrease, (2) a negative
obligations of the Treasury. "State and local government"
figure, or (3) an outflow.
also includes municipalities, special districts, and other politi"U.S. government securities" may include guaranteed
cal subdivisions,
issues of U.S. government agencies (the flow of funds
figures
In some of the tables details do not add to totals because of
also include not fully guaranteed issues) as well as direct
rounding.
STATISTICAL
RELEASES
List Published Semiannually, with Latest Bulletin Reference
Issue
June 1982
Anticipated schedule of release dates for periodic releases
SPECIAL
Page
A76
TABLES
Published Irregularly, with Latest Bulletin Reference
Assets and liabilities of U.S.
Assets and liabilities of U.S.
Assets and liabilities of U.S.
Assets and liabilities of U.S.
Commercial bank assets and
Commercial bank assets and
Commercial bank assets and
Commercial bank assets and
branches and agencies of foreign
branches and agencies of foreign
branches and agencies of foreign
branches and agencies of foreign
liabilities, September 30, 1981
liabilities, December 31, 1981
liabilities, March 31, 1982
liabilities, June 30, 1982
banks,
banks,
banks,
banks,
September 30, 1981
December 31, 1981
March 31, 1982
June 30, 1982
January
April
July
October
January
April
July
October
1982
1982
1982
1982
1982
1982
1982
1982
A76
A78
A76
A76
A70
A72
A70
A70
A70
Federal Reserve Board of Governors
P A U L A . VOLCKER,
PRESTON M A R T I N ,
OFFICE
OF BOARD
Chairman
Vice Chairman
MEMBERS
HENRY C . WALLICH
J. CHARLES PARTEE
OFFICE
OF STAFF DIRECTOR
MONETARY
JOSEPH R. COYNE, Assistant to the Board
DONALD J. WINN, Assistant to the Board
FRANK O'BRIEN, JR., Deputy Assistant to the Board
ANTHONY F. COLE, Special Assistant to the Board
WILLIAM R. JONES, Special Assistant to the Board
WILLIAM R. MALONI, Special Assistant to the Board
NAOMI P. SALUS, Special Assistant to the Board
POLICY
OF RESEARCH
AND
to the Board
STATISTICS
DIVISION
MICHAEL BRADFIELD, General Counsel
ROBERT E. MANNION, Deputy General Counsel
J. VIRGIL MATTINGLY, JR., Associate General Counsel
GILBERT T. SCHWARTZ, Associate General Counsel
RICHARD M. ASHTON, Assistant General Counsel
NANCY P. JACKLIN, Assistant General Counsel
MARYELLEN A. BROWN, Assistant to the General Counsel
OFFICE OF THE
SECRETARY
WILLIAM W. WILES, Secretary
BARBARA R. LOWREY, Associate
Secretary
JAMES MCAFEE, Associate
Secretary
DIVISION
FOR
STEPHEN H. AXILROD, Staff Director
EDWARD C. ETTIN, Deputy Staff Director
MURRAY ALTMANN, Assistant to the Board
STANLEY J. SIGEL, Assistant to the Board
NORMAND R.V. BERNARD, Special Assistant
DIVISION
LEGAL
AND FINANCIAL
OF
CONSUMER
AND COMMUNITY
BANKING
AND
REGULATION
JOHN E. RYAN, Director
FREDERICK R. DAHL, Associate
Director
DON E. KLINE, Associate
Director
WILLIAM TAYLOR, Associate
Director
JACK M. EGERTSON, Assistant
Director
ROBERT A. JACOBSEN, Assistant
Director
ROBERT S. PLOTKIN, Assistant
Director
THOMAS A. SIDMAN, Assistant
Director
SIDNEY M. SUSSAN, Assistant
Director
SAMUEL H. TALLEY, Assistant
Director
LAURA M. HOMER, Securities Credit Officer
DIVISION
OF INTERNATIONAL
FINANCE
AFFAIRS
GRIFFITH L. GARWOOD, Director
JERAULD C. KLUCKMAN, Associate
Director
GLENN E. LONEY, Assistant
Director
DOLORES S. SMITH, Assistant
Director
DIVISION OF
SUPERVISION
JAMES L. KICHLINE, Director
JOSEPH S. ZEISEL, Deputy
Director
MICHAEL J. PRELL, Associate
Director
JARED J. ENZLER, Senior Deputy Associate
Director
DONALD L. KOHN, Senior Deputy Associate
Director
ELEANOR J. STOCKWELL, Senior Deputy Associate
Director
HELMUT F. WENDEL, Deputy Associate
Director
MARTHA BETHEA, Assistant
Director
JOE M. CLEAVER, Assistant
Director
ROBERT M. FISHER, Assistant
Director
DAVID E. LINDSEY, Assistant
Director
LAWRENCE SLIFMAN, Assistant
Director
FREDERICK M. STRUBLE, Assistant
Director
STEPHEN P. TAYLOR, Assistant
Director
PETER A. TINSLEY, Assistant
Director
LEVON H. GARABEDIAN, Assistant Director
(Administration)
EDWIN M. TRUMAN, Director
ROBERT F. GEMMILL, Associate
Director
CHARLES J. SIEGMAN, Associate
Director
LARRY J. PROMISEL, Senior Deputy Associate
Director
DALE W. HENDERSON, Deputy Associate
Director
SAMUEL PIZER, Staff Adviser
MICHAEL P. DOOLEY, Assistant
Director
RALPH W. SMITH, JR., Assistant
Director
A71
and Official Staff
LYLE E . GRAMLEY
N A N C Y H . TEETERS
EMMETT J. RICE
OFFICE
OF
STAFF DIRECTOR
FOR
MANAGEMENT
JOHN M. DENKLER, Staff Director
EDWARD T. MULRENIN, Assistant Staff Director
JOSEPH W. DANIELS, SR., Director of Equal
Employment
Opportunity
OFFICE OF STAFF DIRECTOR
FOR
FEDERAL RESERVE BANK
ACTIVITIES
THEODORE E. ALLISON, Staff
DIVISION
BANK
DIVISION
OF DATA
PROCESSING
CHARLES L. HAMPTON, Director
BRUCE M. BEARDSLEY, Deputy
Director
ULYESS D. BLACK, Associate
Director
GLENN L. CUMMINS, Assistant
Director
NEAL H. HILLERMAN, Assistant
Director
ELIZABETH A. JOHNSON, Assistant
Director
WILLIAM C. SCHNEIDER, JR., Assistant
Director
ROBERT J. ZEMEL, Assistant
Director
DIVISION
OF
PERSONNEL
DAVID L. SHANNON, Director
JOHN R. WEIS, Assistant
Director
CHARLES W. WOOD, Assistant
Director
OFFICE
OF THE
CONTROLLER
GEORGE E. LIVINGSTON,
DIVISION
OF SUPPORT
Controller
SERVICES
DONALD E. ANDERSON, Director
ROBERT E. FRAZIER, Associate
Director
WALTER W. KREIMANN, Associate
Director
OF FEDERAL
Director
RESERVE
OPERATIONS
CLYDE H. FARNSWORTH, JR., Director
LORIN S. MEEDER, Associate
Director
DAVID L. ROBINSON, Associate
Director
C. WILLIAM SCHLEICHER, JR., Associate
Director
WALTER ALTHAUSEN, Assistant
Director
CHARLES W. BENNETT, Assistant
Director
ANNE M. DEBEER, Assistant
Director
JACK DENNIS, JR., Assistant
Director
RICHARD B. GREEN, Assistant
Director
Director
EARL G. HAMILTON, Assistant
ELLIOTT C. MCENTEE, Assistant
Director
152
Federal Reserve Bulletin • December 1982
FOMC and Advisory Councils
FEDERAL
OPEN
MARKET
PAUL A. VOLCKER,
COMMITTEE
ANTHONY M. SOLOMON, Vice
Chairman
LYLE E. GRAMLEY
KAREN N . HORN
PRESTON MARTIN
JOHN J. BALLES
ROBERT P. BLACK
WILLIAM F. FORD
STEPHEN H. AXILROD, Staff Director
MURRAY ALTMANN, Secretary
NORMAND R. V. BERNARD, Assistant
Secretary
NANCY M. STEELE, Deputy Assistant
Secretary
MICHAEL BRADFIELD, General Counsel
JAMES H. OLTMAN, Deputy General Counsel
ROBERT E. MANNION, Assistant General Counsel
JAMES L. KICHLINE, Economist
JOHN M. DAVIS, Associate
Economist
Chairman
J. CHARLES PARTEE
EMMETT J. RICE
NANCY H. TEETERS
HENRY C. WALLICH
RICHARD G. DAVIS, Associate
Economist
EDWARD C. ETTIN, Associate
Economist
MICHAEL W. KERAN, Associate
Economist
DONALD L. KOCH, Associate
Economist
JAMES PARTHEMOS, Associate
Economist
MICHAEL J. PRELL, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
EDWIN M. TRUMAN, Associate
Economist
JOSEPH S. ZEISEL, Associate
Economist
PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account
SAM Y. CROSS, Manager for Foreign Operations, System Open Market Account
FEDERAL
ADVISORY
COUNCIL
DONALD C. PLATTEN, Second District, President
ROBERT M. SURDAM, Seventh District, Vice President
RONALD TERRY, Eighth District
CLARENCE G. FRAME, Ninth District
GORDON E. WELLS, Tenth District
T. C. FROST, JR., Eleventh District
JOSEPH J. PINOLA, Twelfth District
WILLIAM S. EDGERLY, First District
JOHN H. WALTHER, Third District
JOHN G. MCCOY, Fourth District
VINCENT C. BURKE, JR., Fifth District
ROBERT STRICKLAND, Sixth District
HERBERT V. PROCHNOW, Secretary
WILLIAM J. KORSVIK, Associate
Secretary
CONSUMER
ADVISORY
COUNCIL
CHARLOTTE H. SCOTT, Charlottesville, Virginia, Chairman
MARGARET REILLY-PETRONE, Upper Montclair, N e w Jersey, Vice Chairman
ARTHUR F. BOUTON, Little Rock, Arkansas
JULIA H. BOYD, Alexandria, Virginia
ELLEN BROADMAN, Washington, D.C.
GERALD R. CHRISTENSEN, Salt Lake City, Utah
JOSEPH N. CUGINI, Westerly, Rhode Island
RICHARD S. D'AGOSTINO, Wilmington, Delaware
SUSAN PIERSON DE WITT, Springfield, Illinois
JOANNE S. FAULKNER, N e w Haven, Connecticut
MEREDITH FERNSTROM, N e w York, N e w York
ALLEN J. FISHBEIN, Washington, D.C.
E. C. A. FORSBERG, SR., Atlanta, Georgia
LUTHER R. GATLING, N e w York, N e w York
VERNARD W. HENLEY, Richmond, Virginia
JUAN J. HINOJOSA, McAllen, Texas
SHIRLEY T. HOSOI, Los Angeles, California
GEORGE S. IRVIN, Denver, Colorado
HARRY N. JACKSON, Minneapolis, Minnesota
F. THOMAS JUSTER, Ann Arbor, Michigan
ROBERT J. MCEWEN, S. J., Chestnut Hill, Massachusetts
STAN L. MULARZ, Chicago, Illinois
WILLIAM J. O'CONNOR, Buffalo, N e w York
WILLARD P. OGBURN, Boston, Massachusetts
JANET J. RATHE, Portland, Oregon
RENE REIXACH, Rochester, N e w York
PETER D. SCHELLIE, Washington, D.C.
NANCY Z. SPILLMAN, Los Angeles, California
CLINTON WARNE, Cleveland, Ohio
FREDERICK T. WEIMER, Chicago, Illinois
A73
Federal Reserve Banks, Branches, and Offices
F E D E R A L R E S E R V E B A N K , Chairman
Deputy Chairman
branch, or facility
Zip
President
First Vice President
BOSTON*
02106
Robert P. Henderson
Thomas I. Atkins
Frank E. Morris
James A. Mcintosh
N E W YORK*
10045
Robert H. Knight, Esq.
Boris Yavitz
Frederick D. Berkeley, III
Anthony M. Solomon
Thomas M. Timlen
Buffalo
14240
John T. Keane
PHILADELPHIA
19105
Jean A. Crockett
Robert M. Landis, Esq.
Edward G. Boehne
Richard L. Smoot
CLEVELAND*
44101
J. L. Jackson
William H. Knoell
Clifford R. Meyer
Milton G. Hulme, Jr.
Karen N. Horn
William H. Hendricks
Steven Muller
Paul E. Reichardt
Edward H. Covell
Naomi G. Albanese
Robert P. Black
Jimmie R. Monhollon
Cincinnati
Pittsburgh
45201
15230
RICHMOND*
23219
Baltimore
21203
Charlotte
28230
Culpeper
Communications
and Records Center
22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
N e w Orleans
30301
35202
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
72203
40232
Memphis
38101
MINNEAPOLIS
Helena
K A N S A S CITY
55480
59601
64198
Denver
Oklahoma City
80217
73125
Omaha
68102
DALLAS
75222
El
Paso
Houston
79999
77001
San Antonio
78295
S A N FRANCISCO
94120
Vice President
in charge of branch
Robert E. Showalter
Harold J. Swart
Robert D. McTeer, Jr.
Stuart P. Fishburne
Albert D. Tinkelenberg
William A. Fickling, Jr.
John H. Weitnauer, Jr.
William H. Martin, III
Copeland D. Newbern
Eugene E. Cohen
Cecelia Adkins
Leslie B. Lampton
William F. Ford
Robert P. Forrestal
John Sagan
Stanton R. Cook
Russell G. Mawby
Silas Keehn
Daniel M. Doyle
Armand C. Stalnaker
W. L. Hadley Griffin
Richard V. Warner
James F. Thompson
Donald B. Weis
Lawrence K. Roos
Donald W. Moriarty, Jr.
William G. Phillips
John B. Davis, Jr.
Ernest B. Corrick
E. Gerald Corrigan
Thomas E. Gainor
Paul H. Henson
Doris M. Drury
James E. Nielson
Christine H. Anthony
Robert G. Lueder
Roger Guffey
Henry R. Czerwinski
Gerald D. Hines
John V. James
A. J. Losee
Jerome L. Howard
Lawrence L. Crum
Robert H. Boykin
William H. Wallace
Caroline L. Ahmanson
Alan C. Furth
Bruce M. Schwaegler
John C. Hampton
Wendell J. Ashton
John W. Ellis
John J. Balles
John B. Williams
Hiram J. Honea
Charles D. East
Patrick K. Barron
Jeffrey J. Wells
James D. Hawkins
William C. Conrad
John F. Breen
Donald L. Henry
Randall C. Sumner
Robert F. McNellis
Wayne W. Martin
William G. Evans
Robert D. Hamilton
Joel L. Koonce, Jr.
J. Z. Rowe
Thomas H. Robertson
Richard C. Dunn
Los Angeles
90051
Angelo S. Carella
A. Grant Holman
Portland
97208
Gerald R. Kelly
Salt Lake City
84130
Seattle
98124
*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016;
Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
A74
Federal Reserve Board Publications
Copies are available from PUBLICATIONS SERVICES,
Room MP-510, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551. When a charge is indicated, remittance should accompany
request and be made
payable to the order of the Board of Governors of the Federal
Reserve System. Remittance from foreign residents
should
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THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS. 1974. 125 pp.
ANNUAL REPORT.
FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or
$2.00 each in the United States, its possessions, Canada,
and Mexico; 10 or more of same issue to one address,
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BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint
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BANKING AND MONETARY STATISTICS, 1941-1970. 1976.
1,168 pp. $15.00.
ANNUAL STATISTICAL DIGEST
1971-75. 1976. 339 pp. $5.00 per copy.
1972-76. 1977. 377 pp. $10.00 per copy.
1973-77. 1978. 361 pp. $12.00 per copy.
1974-78. 1980. 305 pp. $10.00 per copy.
1970-79. 1981. 587 pp. $20.00 per copy.
1980.
1981. 241 pp. $10.00 per copy.
1981.
1982. 239 pp. $6.50 per copy.
FEDERAL RESERVE CHART BOOK. Issued four times a year in
February, May, August, and November. Subscription
includes one issue of Historical Chart Book. $7.00 per
year or $2.00 each in the United States, its possessions,
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HISTORICAL CHART BOOK. Issued annually in Sept. Subscription to Federal Reserve Chart Book includes one issue.
$1.25 each in the United States, its possessions, Canada,
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Elsewhere, $1.50 each.
SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES OF CHARTS. Weekly. $15.00 per year or $.40 each in
the United States, its possessions, Canada, and Mexico;
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THE FEDERAL RESERVE ACT, as amended through December
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REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.
BANK CREDIT-CARD AND CHECK-CREDIT PLANS. 1968. 102
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REPORT OF THE JOINT TREASURY-FEDERAL RESERVE STUDY
OF THE U . S . GOVERNMENT SECURITIES MARKET. 1969.
48 pp. $.25 each; 10 or more to one address, $.20 each.
JOINT TREASURY-FEDERAL RESERVE STUDY OF THE GOVERNMENT SECURITIES MARKET; STAFF STUDIES—PART
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each. PART 2, 1971. 153 pp. and PART 3, 1973. 131 pp.
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OPEN MARKET POLICIES AND OPERATING PROCEDURES—
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REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT MECHANISM. Vol. 1. 1971. 276 pp. Vol 2. 1971. 173 pp. Vol. 3.
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THE ECONOMETRICS OF PRICE DETERMINATION CONFERENCE, October 30-31, 1970, Washington, D.C. 1972. 397
pp. Cloth ed. $5.00 each; 10 or more to one address,
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FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE
FLUCTUATIONS IN HOUSING CONSTRUCTION. 1972. 487
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LENDING FUNCTIONS OF THE FEDERAL RESERVE BANKS.
1973. 271 pp. $3.50 each; 10 or more to one address,
$3.00 each.
IMPROVING THE MONETARY AGGREGATES: REPORT OF THE
ADVISORY COMMITTEE ON MONETARY STATISTICS.
1976. 43 pp. $1.00 each; 10 or more to one address, $.85
each.
ANNUAL PERCENTAGE RATE TABLES (Truth in Lending—
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FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY
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THE BANK HOLDING COMPANY MOVEMENT TO 1978: A
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IMPROVING THE MONETARY AGGREGATES: STAFF PAPERS.
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1977 CONSUMER CREDIT SURVEY. 1978. 119 pp. $2.00 each.
FLOW OF FUNDS ACCOUNTS. 1949-1978. 1979. 171 pp. $1.75
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INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each;
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A75
FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updated at least monthly. (Requests must be prepaid.)
Consumer and Community Affairs Handbook. $60.00 per
year.
Monetary Policy and Reserve Requirements Handbook.
$60.00 per year.
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Federal Reserve Regulatory Service. 3 vols. (Contains all
three Handbooks plus substantial additional material.)
$175.00 per year.
Rates for subscribers outside the United States are as
follows and include additional air mail costs:
Federal Reserve Regulatory Service, $225.00 per year.
Each Handbook, $75.00 per year.
WELCOME TO THE FEDERAL RESERVE, December 1980.
PROCESSING BANK HOLDING COMPANY AND MERGER APPLICATIONS
CONSUMER
EDUCATION
PAMPHLETS
Short pamphlets
suitable for classroom
use.
copies available without
charge.
Multiple
Alice in Debitland
Consumer Handbook to Credit Protection Laws
The Equal Credit Opportunity Act and . . . Age
The Equal Credit Opportunity Act and . . . Credit Rights in
Housing
The Equal Credit Opportunity Act and . . . Doctors, Lawyers, Small Retailers, and Others Who May Provide
Incidental Credit
The Equal Credit Opportunity Act and . . . Women
Fair Credit Billing
Federal Reserve Glossary
Guide to Federal Reserve Regulations
How to File A Consumer Credit Complaint
If You Borrow To Buy Stock
If You Use A Credit Card
Series on the Structure of the Federal Reserve
System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Monetary Control Act of 1980
Organization and Advisory Committees
Truth in Leasing
U.S. Currency
What Truth in Lending Means to You
STAFF STUDIES:
Summaries Only Printed in the
Bulletin
Studies and papers on economic and financial subjects
that are of general interest. Requests to obtain single copies
of the full text or to be added to the mailing list for the series
may be sent to Publications
Services.
BELOW THE BOTTOM LINE: THE USE OF CONTINGENCIES
AND COMMITMENTS BY COMMERCIAL BANKS, by Benjamin Wolkowitz and others. Jan. 1982. 186 pp.
MULTIBANK HOLDING COMPANIES: RECENT EVIDENCE ON
COMPETITION AND PERFORMANCE IN BANKING MARKETS, by Timothy J. Curry and John T. Rose. Jan. 1982.
9 pp.
COSTS, SCALE ECONOMIES, COMPETITION, AND PRODUCT
MIX IN THE U . S . PAYMENTS MECHANISM, by David B.
Humphrey. Apr. 1982. 18 pp.
DIVISIA MONETARY AGGREGATES: COMPILATION, DATA,
AND HISTORICAL BEHAVIOR, by William A. Barnett and
Paul A. Spindt. May 1982. 82 pp.
THE COMMUNITY REINVESTMENT ACT AND CREDIT ALLOCATION, by Glenn Canner. June 1982. 8 pp.
INTEREST RATES AND TERMS ON CONSTRUCTION LOANS AT
COMMERCIAL BANKS, by David F. Seiders. July 1982.
14 pp.
STRUCTURE-PERFORMANCE STUDIES IN BANKING: AN UPDATED SUMMARY AND EVALUATION, by Stephen A.
Rhoades. Aug. 1982. 15 pp.
FOREIGN SUBSIDIARIES OF U.S. BANKING ORGANIZATIONS,
by James V. Houpt and Michael G. Martinson. Oct.
1982. 18 pp.
REDLINING: RESEARCH AND FEDERAL LEGISLATIVE RESPONSE, by Glenn B. Canner. Oct. 1982. 20 pp.
REPRINTS
Most of the articles reprinted
do not exceed 12
pages.
Perspectives on Personal Saving. 8/80.
The Impact of Rising Oil Prices on the Major Foreign
Industrial Countries. 10/80.
Federal Reserve and the Payments System: Upgrading Electronic Capabilities for the 1980s. 2/81.
Survey of Finance Companies, 1980. 5/81.
Bank Lending in Developing Countries. 9/81.
U.S. International Transactions in 1981. 4/82.
The Commercial Paper Market since the Mid-Seventies. 6/82.
Applying the Theory of Probable Future Competition. 9/82.
International Banking Facilities. 10/82.
A76
ANTICIPATED
BOARD
SCHEDULE
OF GOVERNORS
OF RELEASE
DATES
OF THE FEDERAL
FOR PERIODIC
RESERVE
RELEASES-
SYSTEM1
Weekly Releases
Approximate
release days
Date or period
to which data refer
Aggregate Reserves of Depository Institutions and Monetary Base.
H.3 (502) [1.22]
Monday
Week ended previous
Wednesday
Actions of the Board; Applications and Reports. H.2 (501)
Friday
Week ended previous
Saturday
Assets and Liabilities of Domestically Chartered and Foreign Related
Banking Institutions. H.8 (510) [1.25]
Wednesday
Wednesday, 2 weeks earlier
Changes in State Member Banks. K.3 (615)
Tuesday
Week ended previous
Saturday
Factors Affecting Reserves of Depository Institutions and Condition
Statement of Federal Reserve Banks. H.4.1 (503) [1.11]
Friday
Week ended previous
Wednesday
Foreign Exchange Rates. H.10 (512) [3.28]
Monday
Week ended previous Friday
Money Stock Measures and Liquid Assets. H.6 (508) [1.21]
Friday
Week ended Wednesday of
of previous week
Selected Borrowings in Immediately Available Funds of Large
Member Banks. H.5 (507) [1.13]
Thursday
Week ended Thursday of
previous week
Selected Interest Rates. H. 15 (519) [ 1.35]
Monday
Week ended previous
Saturday
Weekly Consolidated Condition Report of Large Commercial Banks
and Domestic Subsidiaries. H.4.2 (504) [1.26, 1.27, 1.28, 1.29,
1.291]
Friday
Wednesday, 1 week earlier
Weekly Report of Assets and Liabilities of International Banking
Facilities. H. 14 (518)
Monday
Wednesday, 2 weeks earlier
Weekly Summary of Reserves and Interest Rates. H.9 (511)
Friday
Week ended previous
Wednesday; and week
ended Wednesday of
previous week
Capacity Utilization: Manufacturing and Materials. G.3 (402) [2.11]
Mid month
Previous month
Changes in Status of Banks and Branches. G.4.5 (404)
25th of month
Previous month
Commercial and Industrial Loans to U.S. Addressees Excluding
Bankers' Acceptances and Commercial Paper by Industry. G.27
(429) [1.30]
2nd Monday of
month
Last Wednesday of previous
month
Consumer Installment Credit. G.19 (421) [1.56, 1.57]
5th working day of
month
2nd month previous
Debits and Deposit Turnover at Commercial Banks. G.6 (406) [1.20]
25th of month
Previous month
Finance Companies. G.20 (422) [1.52, 1.53]
5th working day of
month
2nd month previous
Foreign Exchange Rates. G.5 (405) [3.28]
1st of month
Previous month
Monthly Releases
1. Release dates are those anticipated or usually met. However, please note that for some releases there is normally a certain variability because
of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later
than anticipated.
The BULLETIN table that reports these data is designated in brackets.
All
Monthly Releases—Continued
Approximate
release days
Date or period
to which data refer
Industrial Production. G. 12.3 (414) [2.13]
Mid month
Previous month
Loan Commitments at Selected Large Commercial Banks. G.21 (423)
20th of month
2nd month previous
Loans and Securities at all Commercial Banks. G.7 (407) [1.23]
20th of month
Previous month
Major Nondeposit Funds of Commercial Banks. G. 10 (411) [1.24]
20th of month
Previous month
Maturity Distribution of Outstanding Negotiable Time Certificates of
Deposit. G.9 (410)
24th of month
Last Wednesday of previous
month
Research Library—Recent Acquisitions. G.15 (417)
1st of month
Previous month
Selected Interest Rates. G.13 (415) [1.35]
3rd working day of
month
Previous month
Summary of Equity Security Transactions. G. 16 (418)
Last week of
month
Release date
Agricultural Finance Databook. E.15 (125)
End of March,
June, September,
and December
January, April, July, and
October
Automobile Credit. E.4 (114)
4th of April, July,
October, and
January
Previous quarter
Finance Rates and Other Terms on Selected Types of Consumer
Installment Credit Extended by Major Finance Companies. E.10
(120)
25th of January,
April, July, and
October
2nd month previous
Flow of Funds: Seasonally adjusted and unadjusted. Z.l (780) [1.58,
1.59]
15th of February,
May, August,
and November
Previous quarter
Geographical Distribution of Assets and Liabilities of Major Foreign
Branches of U.S. Banks. E . l l (121)
15th of March,
June,
September, and
December
Previous quarter
Survey of Terms of Bank Lending. E.2 (111) [1.34]
15th of March,
June,
September, and
December
February, May, August, and
November
May and
November
End of previous December
and June
Quarterly Releases
Semiannual Releases
Domestic Offices, Commercial Bank Assets and Liabilities
Consolidated Report of Condition. E.3.4 (113) [1.26, 1.27, 1.28]
Check Collection Services—Federal Reserve System. E.9 (119)
Country Exposure Lending Survey. E. 16 (126)
List of OTC Margin Stocks. E.7 (117)
February and July
Previous 6 months
May and
November
End of previous December
and June
February, June
and October
Release date
A78
Annual Releases
Approximate
release days
Date or period
to which data refer
Aggregate Summaries of Annual Surveys of Security Credit
Extension. C.2 (101)
February
End of previous June
Bank Holding Companies and Subsidiary Banks,
(Domestic and Foreign). C.6 (105)
March
Previous year
Bank Holding Companies and Subsidiary
Banks (Domestic only). C.5 (104)
March
Previous year
A79
Index to Statistical Tables
References are to pages A3 through A68 although the prefix 'A" is omitted in this index
ACCEPTANCES, bankers, 11, 26, 28
Agricultural loans, commercial banks, 19, 20, 21, 27
Assets and liabilities (See also Foreigners)
Banks, by classes, 18, 19-22
Domestic finance companies, 39
Federal Reserve Banks, 12
Foreign banks, U.S. branches and agencies, 23
Nonfinancial corporations, 38
Savings institutions, 30
Automobiles
Consumer installment credit, 42, 43
Production, 48, 49
BANKERS balances, 18, 19-21
(See also Foreigners)
Banks for Cooperatives, 35
Bonds (See also U.S. government securities)
N e w issues, 36
Rates, 3
Branch banks, 16, 22-23, 56
Business activity, nonfinancial, 46
Business expenditures on new plant and equipment, 38
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 18
Federal Reserve Banks, 12
Central banks, 67
Certificates of deposit, 22, 28
Commercial and industrial loans
Commercial banks, 16, 18, 23, 27
Weekly reporting banks, 19-23, 24
Commercial banks
Assets and liabilities, 18, 19-22
Business loans, 27
Commercial and industrial loans, 16, 18, 23, 24, 27
Consumer loans held, by type, 42, 43
Loans sold outright, 22
Nondeposit funds, 17
Number, by classes, 18
Real estate mortgages held, by holder and property, 41
Time and savings deposits, 3
Commercial paper, 3, 26, 28, 39
Condition statements (See Assets and liabilities)
Construction, 46, 50
Consumer installment credit, 42, 43
Consumer prices, 46, 51
Consumption expenditures, 52, 53
Corporations
Profits and their distribution, 37
Security issues, 36, 66
Cost of living (See Consumer prices)
Credit unions, 30, 42, 43
(See also Thrift institutions)
Currency and coin, 5, 18
Currency in circulation, 4, 14
Customer credit, stock market, 29
DEBITS to deposit accounts, 15
Debt (See specific types of debt or
Demand deposits
Adjusted, commercial banks, 15
Banks, by classes, 18, 19-22
securities)
Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 25
Turnover, 15
Depository institutions
Reserve requirements, 8
Reserves and related items, 3, 4, 5, 13
Deposits (See also specific types)
Banks, by classes, 3, 18, 19-22, 30
Federal Reserve Banks, 4, 12
Turnover, 15
Discount rates at Reserve Banks and at foreign central
banks (See Interest rates)
Discounts and advances by Reserve Banks (See
Loans)
Dividends, corporate, 37
EMPLOYMENT, 46, 47
Eurodollars, 28
FARM mortgage loans, 41
Federal agency obligations, 4, 11, 12, 13, 34
Federal credit agencies, 35
Federal finance
Debt subject to statutory limitation and types and
ownership of gross debt, 33
Receipts and outlays, 31, 32
Treasury financing of surplus, or deficit, 31
Treasury operating balance, 31
Federal Financing Bank, 31, 35
Federal funds, 3, 6, 19, 20, 21, 28, 31
Federal Home Loan Banks, 35
Federal Home Loan Mortgage Corporation, 35, 40, 41
Federal Housing Administration, 35, 40, 41
Federal Intermediate Credit Banks, 35
Federal Land Banks, 35, 41
Federal National Mortgage Association, 35, 40, 41
Federal Reserve Banks
Condition statement, 12
Discount rates (See Interest rates)
U.S. government securities held, 4, 12, 13, 33
Federal Reserve credit, 4, 5, 12, 13
Federal Reserve notes, 12
Federally sponsored credit agencies, 35
Finance companies
Assets and liabilities, 39
Business credit, 39
Loans, 19, 20, 21, 42, 43
Paper, 26, 28
Financial institutions
Loans to, 19, 20, 21
Selected assets and liabilities, 30
Float, 4
Flow of funds, 44, 45
Foreign banks, assets and liabilities of U.S. branches and
agencies, 23
Foreign currency operations, 12
Foreign deposits in U.S. banks, 4, 12, 19, 20, 21
Foreign exchange rates, 68
Foreign trade, 55
Foreigners
Claims on, 56, 58, 61, 62, 63, 65
Liabilities to, 22, 55, 56-60, 64, 66, 67
A80
GOLD
Certificate account, 12
Stock, 4, 55
Government National Mortgage Association, 35, 40, 41
Gross national product, 52, 53
HOUSING, new and existing units, 50
INCOME, personal and national, 46, 52, 53
Industrial production, 46, 48
Installment loans, 42, 43
Insurance companies, 30, 33, 41
Interbank loans and deposits, 18
Interest rates
Bonds, 3
Business loans of banks, 27
Federal Reserve Banks, 3, 7
Foreign central banks and foreign countries, 67
Money and capital markets, 3, 28
Mortgages, 3, 40
Prime rate, commercial banks, 27
Time and savings deposits, 9
International banking facilities, 17
International capital transactions of United States, 54-67
International organizations, 58, 59-61, 64-67
Inventories, 52
Investment companies, issues and assets, 37
Investments (See also specific types)
Banks, by classes, 18, 30
Commercial banks, 3, 16, 18, 19-21
Federal Reserve Banks, 12, 13
Savings institutions, 30, 41
LABOR force, 47
Life insurance companies (See Insurance
companies)
Loans (See also specific types)
Banks, by classes, 18, 19-22
Commercial banks, 3, 16, 18, 19-22, 23, 27
Federal Reserve Banks, 3, 4, 5, 7, 12, 13
Insured or guaranteed by United States, 40, 41
Savings institutions, 30, 41
MANUFACTURING
Capacity utilization, 46
Production, 46, 49
Margin requirements, 29
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 6
Reserve requirements, 8
Mining production, 49
Mobile home shipments, 50
Monetary and credit aggregates, 3, 13
Money and capital market rates (See Interest
rates)
Money stock measures and components, 3, 14
Mortgages (See Real estate loans)
Mutual funds (See Investment companies)
Mutual savings banks, 9, 19-21, 30, 33, 41, 42, 43
(See also Thrift institutions)
NATIONAL defense outlays, 32
National income, 52
OPEN market transactions, 11
PERSONAL income, 53
Prices
Consumer and producer, 46, 51
Stock market, 29
Prime rate, commercial banks, 27
Producer prices, 46, 51
Production, 46, 48
Profits, corporate, 37
REAL estate loans
Banks, by classes, 19-21, 41
Rates, terms, yields, and activity, 3, 40
Savings institutions, 28
Type of holder and property mortgaged, 41
Repurchase agreements and federal funds, 6, 19, 20, 21
Reserve requirements, 8
Reserves
Commercial banks, 18
Depository institutions, 3, 4, '5, 13
Federal Reserve Banks, 12
U.S. reserve assets, 55
Residential mortgage loans, 40
Retail credit and retail sales, 42, 43, 46
SAVING
Flow of funds, 44, 45
National income accounts, 53
Savings and loan assns., 9, 30, 41, 42, 43, 44
(See also Thrift institutions)
Savings deposits (See Time and savings deposits)
Securities (See specific types)
Federal and federally sponsored credit agencies, 35
Foreign transactions, 66
New issues, 36
Prices, 29
Special drawing rights, 4, 12, 54, 55
State and local governments
Deposits, 19, 20, 21
Holdings of U.S. government securities, 33
New security issues, 36
Ownership of securities issued by, 19, 20, 21, 30
Rates on securities, 3
Stock market, 29
Stocks (See also Securities)
New issues, 36
Prices, 29
TAX receipts, federal, 32
Thrift institutions, 3 (See also Credit unions,
Mutual savings banks, and Savings and loan
associations)
Time and savings deposits, 3, 9, 15, 18, 19-22
Trade, foreign, 55
Treasury currency, Treasury cash, 4
Treasury deposits, 4, 12, 31
Treasury operating balance, 31
UNEMPLOYMENT, 47
U.S. government balances
Commercial bank holdings, 19, 20, 21
Treasury deposits at Reserve Banks, 4, 12, 31
U.S. government securities
Bank holdings, 18, 19-21, 33
Dealer transactions, positions, and financing, 34
Federal Reserve Bank holdings, 4, 12, 13, 33
Foreign and international holdings and transactions, 12,
33, 67
Open market transactions, 11
Outstanding, by type and ownership, 33
Ownership of securities issued by, 30
Rates, 3, 28
U.S. international transactions, 54-67
Utilities, production, 49
VETERANS Administration, 40, 41
WEEKLY reporting banks, 19-24
Wholesale (producer) prices, 46, 51
YIELDS (See Interest rates)
A81
Index to Volume 68
GUIDE TO PAGE REFERENCES
Issue
January . . .
February .
March
April
May
June
IN MONTHLY
Text
Other
('A' " pages)
1-76
77-124
125-206
207-280
281-326
327-392
Total
1-88
1-80
1-80
1-90
1-78
1-82
Index to
tables
86-87
76-77
76-77
88-89
76-77
79-80
ISSUES
Issue
July
August....
September
October . . .
November
December
Text
Other
393-442
443-526
527-564
565-680
681-724
725-802
Total
1-88
1-78
1-78
1-88
1-78
1-96
('A' ' pages)
Index to
tables
86-87
76-77
76-77
86-87
76-77
79-80
(The "A" pages referred to in this index are in the December issue.
For special tables published during 1982, see list on p. A69 of this issue.)
Pages
ACKER, Duane, elected Class B director, Kansas City . 275
Agriculture
Food and agricultural situation, article on perspectives
1
Allison, Theodore E.
Delayed funds availability, statement
178
Annual Report to Congress (See Publications)
Annual Statistical Digest (See Publications)
Articles
Bank holding companies, financial developments in
1981
335
Banking Affiliates Act of 1982: Amendments to Section 23A of Federal Reserve Act
693
Banking structure, 1970-81
77
Commercial paper market since mid-seventies
327
Federal Reserve System pricing, report
467
Financial innovation and monetary policy
393
Food and agricultural situation, perspectives
1
Foreign exchange operations of Treasury and Federal
Reserve (See Foreign exchange operations)
Industrial development bonds
135
Industrial production in recession
681
Insured commercial banks, profitability
453
International banking facilities
565
Monetary policy, money supply, and Federal Reserve's operating procedures, paper
13
Monetary policy, remarks excerpted from informal
talk
691
Mortgage and consumer credit markets
281
Statements and reports to Congress (See Statements
to Congress)
527
Theory of probable future competition
Thrift institutions
725
U.S. international transactions in 1981
207
Ashton, Richard M., appointed Assistant General Counsel for Litigation and Enforcement
304
Automated clearinghouses (See Clearinghouses)
Axilrod, Stephen H.
Debt management, statement
219
Monetary policy, money supply, and Federal Reserve's operating procedures, paper
13
Pages
BAILEY, Edgar H., appointed director, Memphis
Branch
274
Balides, Paul, article
1
Ballard, William C., Jr., appointed director, Louisville
Branch
274
Bank acquisitions, mergers, or consolidations, proposed
Board policy statement
188
Bank Control Act, change in, expansion of delegated
authority of General Counsel, amendment of Rules
Regarding Delegation of Authority
711
Bank for International Settlements
538
Bank holding companies (For orders issued to individual
companies under the Bank Holding Company Act,
see Bank Holding Company Act)
Applications, new pamphlet
759
Capital adequacy
Criteria for applying to mandatory convertible issues, adoption and revision
361, 626
Guidelines, issuance by Comptroller of Currency
and Federal Reserve
33
Financial developments in 1981, article
335
Investments in nonvoting shares of other holding
companies or banks, Board policy statement
413
Multibank companies, staff study on competition and
performance in banking markets
26
Nonbanking activities, proposed
303
Regulation Y (See Regulations)
Theory of probable future competition, article on
applying
527
Bank Holding Company Act
Orders issued under
Abanc Holding, Inc
797
ABC Bancshares, Inc
257
A.B.T. Corporation
257
Addison Bancshares, Inc
718
Affiliated Bankshares of Colorado, Inc
557, 676
Aktivbanken A/S, et al
238
Alamo Corporation of Texas
797
Alden Bancshares, Inc
320
Allied Bancshares, Inc
71, 201, 557
Allied Bancshares of Illinois, Inc
257
162
Federal Reserve Bulletin • December 1982
Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
Allied Irving Bancshares, Inc
557
Alpine Bancorp, Inc
797
Amarillo National Bancorp, Inc
201, 385
Ameribanc, Inc
320
American Bancorp of Nevada
434
American Bancorporation Holding Company
320
American Bancorporation, Inc
797
American Banking Corporation
718
American Commerce Bancshares, Inc
797
American Eagle Holding Corporation
320
American Heritage Bancorp, Inc
676
American, Inc
438
American Interstate Bancshares, Inc
434
American Security Bancshares Inc
557
Americana Bancorporation of Alden, Inc
522
Americana Bancorporation of Danube, Inc
434
Americo Bancshares, Inc
385
AmeriTrust Corporation
434
Amoret Bancshares, Inc
435
AmSouth Bancorporation
522, 557
Amsterdam Bancshares, Inc
557
Andrew Johnson Bancshares, Inc
385
Andrews Financial Corporation
522
Antioch Holding Company
558
APSB Bancorp
718
Area Financial Corp
320
Argyle Financial Services, Inc
201
Ashby Bancshares, Inc
676
Associated Banc-Corp
385
Associated Bank Shares Corporation
797
Atlantic Bancorporation
796
Azle Bancorp
201
Baldy Bancshares, Inc
321
Ballerton Corporation
256
Banc of San Jacinto County Bancshares, Inc
558
Banca Commerciale Italiana
423
Bancap, Inc
797
Banco de Colombia, S.A. (Colombia)
114
Banco de Colombia, S.A. (Panama)
114
Bancomer, S.A
115
Bancomer Holding Companies (Antilles) N.V. . . . 115
Bancomer Holding Company [California]
115
Bancomer Holding Company
(Netherlands) B.V
115
Bancorp of Mississippi, Inc
321
Bancorp of Northwestern Indiana
386
BancSouth, Inc
718
BankAmerica Corporation
248, 647
Bankcore, Inc
522
BankEast Corporation
116,379,650
Bankers Trust N e w York Corporation
651
Bank of New England Corporation
711
Bank of Poplar Bluff Bancshares, Inc
72, 718
Bank of Virginia Company
798
Bank Sales Department, Inc
385
Bank Securities, Inc
119
Bank South Corporation
72
Banks County Financial Corporation
120
Banks of Iowa, Inc
201
Barnett Banks of Florida, Inc
190, 385
Basin Bancorp Inc
386
Bay Bankshares, Inc
321
Bay-Hermann Bancshares, Inc
257
Beacon Financial Corporation, Inc
257
Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
Beecher Bancorp, Inc
Belfield Bancshares, Inc
Benbrook Bancshares, Inc
Beverly Bankshares, Inc
Biggsville Financial Corporation
Big Lake Bancshares, Inc
Birnamwood Bancshares, Inc
BNW Bancorp
B.O.A. Bancshares, Inc
Boatmen's Bancshares, Inc
Bonneville Bancorp
Borger First Corporation
BOS Bancshares, Inc
Boulevard Bancorp, Inc
Bowbells Holding Company
Bradley Bancshares, Inc
Brady National Holding
Company, Inc
Bridgeport Banshares, Inc
Brighton Bancshares, Inc
Brinkley Bancshares, Inc
Broad National Bancorporation
Broadway Bancshares, Inc
Bryant Bancshares, Inc
BSD Bancorp, Inc
Buffalo Bancorporation, Inc
Buhl Bancorporation, Inc
Bunceton Bancshares, Inc
Bushnell Bancorp
Cairo Bancshares, Inc
Cal Coast Bancorp
Caldwell Bancshares, Inc
Cambria State Bankshares, Inc
Camp Grove Bancorp, Inc
Canadian Bancshares, Inc
Canadian Commercial Bank
Caneyville Bancshares, Inc
Capital Bancorp
Capitol Bancorporation, Inc
Caprock Bancshares, Inc
Carbondale Bancshares, Inc
Carolina Bancorp, Inc
Carter Bancshares, Inc
Carthage Bancshares, Inc
Carver County Bancshares, Inc
CB&T, Inc
CBC Bancorp, Ltd
CBC, Inc
C.C.B. Bancorp
C.C.B. Inc
Cedar Bancorp
Cedar Valley Bankshares, Ltd
Celeste Bancshares, Inc
Centerre Bancorporation
Central Bancorporation, Inc
Central Bancshares, Inc
Central Capital Corporation
Central Colorado Company
Central Dakota Bank Holding Company
Central Fidelity Banks, Inc
Central Financial Corporation
Central Illinois Banc Shares, Inc
Central Lakes Bancorporation, Inc
Central of Illinois, Inc
718
676
257
386
72
72
558
257
676
386
386
386
558
72, 435
257
257
257
558
120
72
256
256
798
201,386,435
201
72
796
389
321
558
386
522
120
718
321
325
257
558
435
321
201
257
558
798
435
257
72
321
558, 676
120
676
558
320
558, 676, 789
558
321
558, 676
718
677
321
72
718
257, 718
Index to Volume 68
Pages
Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
Central Pacific Corporation
Central Wisconsin Bankshares, Inc
Century Bancorp, Inc
Century Bank Shares
Ceylon Bancorporation, Inc
Charter Bancorporation, Inc
CharterCorp
Chase Manhattan Corporation
Chebelle Corporation
Chemical Financial Corporation
Chemical New York Corporation
Chicago Heights Bancorp, Inc
Chillicothe Bancshares, Inc
Chisago Bancorporation, Inc
Citadel Bankshares, Inc
Citicorp
249, 251, 499, 505, 524,
Citizens and Southern Georgia Corporation .
Citizens Bancorp
Citizens Ban-Corporation
Citizens Bancorporation of Milaca, Inc
Citizens Bank Holding Company
Citizens Bank Services, Inc
Citizens Commerce Corporation
Citizens First Bancorp, Inc
Citizens Holding Company
Citizens National Corporation
Citizens' National Corporation
Citizens State Financial Corporation
Citizens Union Bancorp of Shelbyville, Inc
City Bancorp Inc
City National Corporation
City Savings Bancshares, Inc
Clare Bancorporation
Clark County Bancshares, Inc
Clay County Bancshares, Inc
Climbing Hill Bancshares, Inc
Cloud County Bancshares, Inc
CNB Capital Corp
CNB Financial Corporation
CNCC Partners
Coleman Bancshares, Inc
Collins ville Bancorp, Inc
Colonial Bancshares, Inc
Colonial Bancshares of Greenville, Inc
Colonial Capital Corporation
Colorado National Bankshares, Inc
Colorado River Bancorp
Columbia Bancshares, Inc
Columbia Bancshares, Inc
Columbus Corporation
Commerce Bancshares, Inc
Commercial Bancshares, Inc
Commercial Bancshares, Inc
Commercial Bankshares, Inc
Commercial Bankstock, Inc
Commercial National Corporation
Community Bancorporation, Inc
Community Bancshares, Inc
Community Banks, Inc
Community Bankshares, Inc
Community Corporation
Community Financial Services
Conifer Group Inc
Continental Illinois Corporation
382
558
435
677
435
558
718, 798
120, 383
201
435
522
257
558
386
718
656, 776
523, 563
435
718
72
677
718
523
435
386
261
523
798
386
558
62
718
718
558
798
122
718
719
386
48
386
325
558
321
525
435, 553
435
386
677
558
201,435
386
558
798
798
201
435, 796
72, 257
523
321
798
72
201
256, 320
A83
Bank Holding Company Act—Continued
Orders issued—Cont.
Cook Investment, Inc
Corporate Bankshares, Inc
Coulee Bancshares, Inc
Country Bancshares, Inc
Country Bank Company
Credit Lyonnais
Crete Bancorporation, Inc
Cripple Creek Bancorporation, Inc
Crookston Financial Services, Inc
Crowley Holding Company
Crown Bancshares, Inc
C.S.B. Corporation
Cullen/Frost Bankers, Inc
258,
Dacotah Bank Holding Co
Dairy State Financial Services
Dairyland State Bancorporation, Inc
Dakota Bankshares, Inc
Dale Bancorp, Inc
Dallas Guaranty Bancshares, Inc
Dawson Springs Bancorp, Inc
DeKalb Bancorp
DeKalb Bancshares, Inc
120,
DeKalb County Bancshares, Inc
Delaware Bancshares, Inc
DetroitBank Corporation
Deutsche Bank, AG
Dewey County Bancorporation Inc
Dickey County Bancorporation
Dixie Bancshares, Corp
Drew Bancshares, Inc
Dunlap Iowa Holding Co
Early Bankshares, Inc
Earners and Savers Bancorporation
East Central Holding Company
Eastern Iowa Secured Bancshares Corporation
East-Tex Bancorp, Inc
Eaton Capital Corporation
Edens Bancshares, Inc
Edmondton Bancshares, Inc
Eitzen Independents, Inc
El Campo Bancshares, Inc
Elgin State Bancorp, Inc
Elk City State Bancshares, Inc
Ellettsville Bancshares, Inc
Ellis Banking Corporation
Emery Security Bancorporation
Em Kay Financing Corp
Em Kay Holding Corp
Emmons Agency, Inc
England Bancorp
English Valley Bancshares, Inc
Essex Iowa Bancorporation, Inc
European American Bancorp
Evansville Bancshares, Inc
Exchange Bancorporation, Inc
Exchange Financial Corporation
Exchange State Corp
F & M Shares Corp
F & M Holding Company, Inc
F & M National Corporation
Fairfield Bancshares, Inc
Fairmont Bancorp, Inc
Falkner Capital Corporation
Far-Mer Bankshares, Inc
321,
321,
258,
122,
...
426,
796
201
257
257
257
432
523
676
201
321
435
798
523
436
258
798
320
719
677
798
523
523
321
386
523
261
258
115
436
719
558
436
258
525
558
436
801
386
559
798
202
436
436
120
717
798
554
554
122
258
386
677
524
386
200
321
258
120
72
73
258
798
719
202
164
Federal Reserve Bulletin • December 1982
Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
Farmers & Merchants Bancshares, Inc
559
Farmers and Merchants Financial Services, Inc. . 386
Farmers Bancorp, Inc
523
Farmers National Bancorp
321
Farmers State Corporation of Mentone
559
Farmersville Bancshares, Inc
719
FBT Bancshares, Inc
559
F. C. B., Inc
559
Fertile Bancshares, Inc
258
Fidelity BancShares (N.C.), Inc
436
Fifth Third Bancorp
73, 202, 258
Financial Dominion of Kentucky Corporation
120
Financial Future Corporation
719
Financial Services of Winger, Inc
436
Finlayson Bancshares, Inc
559
Firsnabanco, Inc
523
First Abilene Bankshares, Inc
258
First Ada Bancshares, Inc
798
First Ainsworth Company
798
First Alabama Bancshares, Inc. . . . 3 2 1 , 3 8 6 , 5 5 9 , 7 1 9
First Alamogordo Bancorp, Inc
436
First Alsip Bancorp, Inc
202
First Amarillo Bancorporation, Inc
436
First American Bank Corporation
555, 557, 643
First American Bank Group, Ltd
436
First American Corporation
386
First & Merchants Corporation
321,677
First Banc Group, Inc
677
First Bancgroup-Alabama, Inc
436
First Bancorp
523
First Bancorp of Belleville, Inc
202, 559
First Bancorp of Kansas
559
First Bancorp of N.H., Inc
769
First Bancorporation
253
First Bancorporation of Ohio
677
First Bancshares, Inc
202
First Bancshares of Eastern Arkansas, Inc
436
First Bankshares of Las Animas, Inc
436
First Bancshares of Texas, Inc. . . . 202, 322, 436, 719
First Bank Holding Company
559
First Bank Holding Company, Inc
386
First Bankshares, Inc
719
436
First Bolivar Capital Corporation
First Busey Corporation
258, 559
First Carrollton Bancshares, Inc
258
First Central Corporation
796
First-Citizens Corporation
798
First City Bancorp, Inc
258
First City Bancorporation of Texas, Inc
71, 200,
434, 522, 676, 772, 796
First Colonial Bancshares Corporation
202
First Comanche Bancshares, Inc
677
First Community Bancorp, Inc
258
First Coweta Corporation
120
First Delhi Corporation
202
First Dodge City Bancshares, Inc
258
First Edmond Bancshares, Inc
798
First Exchange Corp
719
First Fletcher Bancshares, Inc
719
First Florida Banks, Inc
678
First Frankfort Bancshares, Inc
719
First Freeport Corporation
322, 385
First Glen Bancorp, Inc
204
First Graham Bancorp, Inc
798
Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
First Hartford Bancshares, Inc
719
First Harvey Banc Corporation
258
First Hogansville Bankshares, Inc
559
First Holmes Corporation
73
First Indiana Bancorp
322
First Interstate Bancorp
441
First Insurance Agency, Inc
438
First Jacksboro Bancshares
798
First Jersey National Corp
73
First La Porte Financial Corp
559
First Lafayette Bancorporation
119
First Lakefield BanCorporation, Inc
434
First Mabel BanCorporation, Inc
434
First Manitowac Bancorp, Inc
796
First Maryland Bancorp
320
First Midwest Bancorp., Inc
387, 436, 719
First Moore Bancshares, Inc
123
First Mortgage Corporation of Shreveport
324
First National Bancorp
322
First National Bancorp, Inc
324
First National Bancorp of Rutherford County, Inc. . 322
First National Bancorporation
387
First National Bancshares, Inc
679
First National Bancshares of Fredonia
523
First National Bancshares of Winfield, Inc
559
First National Bank Holding Corporation
799
121
First National Cincinnati Corporation
First National Columbus Bancorp
677
First National Corporation of Jacksonville
563
First National Corporation of Picayune
322
First National Hoffman Bancorp, Inc
559
First Newton Corporation
387
First NorthWest Bancorporation
436
First of Austin Bancshares, Inc
436
First of Herrington, Inc
438
First of Murphysboro Corp
322
First Olathe Bancshares, Inc
121
First Pacific Investments, Ltd., et al
792
First Palmetto Bancshares Corp
719
First Pioneer Bank Corp
799
First Port Allen Bancshares, Inc
677
First Prague Bancorporation, Inc
258
First Prestonsburg Bancshares, Inc
437
First Railroad and Banking Company
of Georgia
73, 559
First Republic Bancshares, Inc
677
First Roane County Bankcorp, Inc
799
First San Benito Bancshares, Inc
259
First Securities Investment, Inc
437
First Selmer Bancshares, Inc
322
First Seneca Corporation
121
First Southeast Banking Corp
387
First Southern Missouri Bankshares, Inc
719
First State Bancorp, Inc
799
First State Bancshares, Inc
322
First State Bank Holding Company
261
First State Corporation
437
First State Holding Company, Inc
202
First Stratford Bancorporation
259
First Tazewell Bancorp, Inc
259
First Tennessee National Corporation
437
First Texas Financial Corporation
202
First Valley National Corp
73
First Winters Holding Company
799
Index to Volume 68
Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
Flag, Inc
256
Flagship Banks, Inc
73, 387
Flint Bancshares, Inc
387
Florida Coast Banks, Inc
781
Florida National Banks of Florida, Inc. . 49, 322, 799
F.M.B. Corporation
719
FM Co
524
Follett Bancshares, Inc
677
Forrest Bancshares, Inc
799
Fourth Financial Corporation
202, 437
Franklin Bancshares, Inc
799
Freeburg Bancorp, Inc
799
Fresnos Bancshares, Inc
437
Frontier Bancshares, Inc
322
Frost Bancorporation, Inc
559
FSB Bancorporation
436
FSB, Covington, Tennessee
436
F. T. Bancshares, Inc
120
Fulton Bancshares, Inc
202
Gale Bank Holding Company, Inc
437
Galva Bancshares, Inc
719
Garrison Bancshares, Inc
322
Gary Holding Company
799
Gary-Wheaton Corporation
259, 322
Gaylord Bancorporation, Ltd
202
General Bancshares Corporation
559
Georgia Peoples Bankshares, Inc
437
Germantown Bancshares, Inc
73
Gibbon Bancorporation, Inc
559
Girard Company
437
GL & ML Limited
679
Glendive Bancorporation, Inc
677
Glenwood Bancshares, Inc
437
Global Bancorporation
256
Goddard Financial Corporation
322
Goodhue County Financial Corporation
799
Graceville Bancorporation, Inc
322
Grand Bancshares, Inc
437
Grand Prairie Bancshares, Inc
719
Great American Bancshares, Inc
437
Great Guaranty Bancshares, Inc
202
Great Lakes Financial Resources, Inc
259
Greater Jersey Bancorp
239
Green Mountain Bancorporation, Inc
719
Greenstone Financial, Inc
241
Greenview Banc Shares, Inc
121
Grinnell Bancshares, Inc
799
Groos Bancshares, Inc
259
GRP, Inc
256
Guaranty Bancshares Holding Corporation
799
Guaranty Commerce Corporation
259
Guardian Banshares, Inc
560
Gulf Coast Holding Corp
322
Gulf South Bancshares, Inc
523
Gulf Southwest Bancorp. Inc
799
Halo Bancorporation, Inc
259
Hampton Park Corporation
719
H & H Bancshares, Inc
799
Hardee Banking Corporation
560
Hardin County Bancshares, Inc
437
Harleysville National Corporation
560
Harper Bancshares, Inc
720
Harris, Bankcorp, Inc
437, 555
Hartford National Corporation
242
A85
Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
Haskell Bancorporation, Inc
Haviland Bancshares, Inc
Hawkeye Bancorporation
322,
H C Financial Corp
Heart of Texas Bancshares, Inc
Heartland Financial Bancshares, Inc
Hebron Banshares, Inc
Hedlund Bancshares, Inc
Heights Bancshares, Inc
Hemingford Banshares, Inc
Hiawatha Bancshares, Inc
Highland Park Bancorporation
Highlands Bancshares, Inc
Hillsboro Bancshares, Inc
Hillsboro Capital Corporation
HNB Corporation
HNB Corporation
Hoi-Ark, Inc
Hong Kong and Shanghai Banking
Corporation
63,
Hoosier Bancshares, Inc
Hopkins Financial Corporation
Hospital Trust Corporation
Howland Bancshares, Inc
HTC Properties, Inc
Hub Financial Corporation
Hudson Bancshares, Inc
Humble Bancshares, Inc
Huntington Bancshares Incorporated
Huntley Bancshares, Inc
Hyannis Banshares, Inc
Illini Community Bancgroup, Inc
Illowa Bancorp, Inc
Imperial Bancorp
Independent Community Banks, Inc
Indian Springs Bancshares, Inc
Indiana Southern Financial Corp
Industrial Bancshares, Inc
Instituto Bancario San Paolo Di Turino
InterFirst Corporation
243, 320,
Intermountain Bankshares, Inc
International Bancorp
International Bancshares of Oklahoma, Inc
Interstate Financial Corporation
Ireton Bancorp
Island American Bancshares, Inc
James Madison, Inc
JDOB, Inc
Jefferson Bankshares, Inc
Jeffersonville Bancorp
Jennings Bank Shares, Inc
Johnston County Bancshares, Inc
;
J.P. Morgan & Co., Incorporated
Kansas Bancorp II, Inc
Kansas State Financial Corporation
Kansas State Investments, Inc
Kansas Unlimited Investments, Inc
Keene Bancorp, Inc
Kentucky Southern Bancorp, Inc
Kersey Bancorp, Inc
Keyesport Bancshares, Inc
Keystone Securities, Inc
Kilgore First Bancorp, Inc
Knob Noster Bancshares, Inc
677
387
560, 799
387
259
800
800
720
121
560
437
202
437
800
560
202
560
204
722, 782
560
523
501
437
501
800
322
677
437
800
560
560
560
784
121
259
322
437
773
385, 644
720
323, 523
438
316
259
202
261
387
438
323
438
387
514
259
323
560
203
203
560
677
203
438
121
440
166
Federal Reserve Bulletin • December 1982
Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
La Porte Bancorp, Inc
560
Lakeshore Bancshares, Inc
523
Lakeside Bancshares, Inc
387
Lamesa National Corporation
720
Lancaster Bancshares, Inc
438
Lancaster Bancshares, Inc
438, 800
Landmark Banking Corporation of Florida
389
Lansing Bancshares, Inc
438
LaPlace Bancshares, Inc
560
Larue Bancshares, Inc
438
Lawton Financial Corp
259
League City Bancshares, Inc
259
Lebo Bancshares, Inc
720
LeClair Agency, Inc
801
Leeds Bancgroup, Inc
121
Letchworth Independent Bancshares Corporation
325
Levelland Co
387
Lewellen National Corp
261
Lexington Bancshares, Inc
560
Liberty Bancorp of Owasso, Inc
720
Liberty Bancshares, Inc
720
Liberty National Bancshares, Inc
203
Lisle Bancorporation
387
Lometa Bancshares, Inc
438
London Bancshare, Inc
560
Louisiana Bancorp, Inc
438
Loup Valley Bancshares, Inc
325
Lower Rio Grande Valley Bancshares, Inc
560
Lubbock Bancorporation, Inc
259
Luling Bancshares, Inc
720
Madelia Holding Corp
797
Madison Bancorp., Inc
387
Madison Financial Corporation
121
Magnolia State Corporation
677
Manchester Bancorp, Inc
677
Manufacturers Hanover Corporation
324, 720
Manufacturers Hanover Trust Corporation
64
Maple Hill Bancshares, Inc
678
Maple Lake Bancshares, Inc
73
Marine Bancorp, Inc
387
Marion Bancshares, Inc
387
Marion National Corporation
720
Mark Twain Bancshares, Inc
203
73
Marlin Financial Corporation
Marshall & Ulsley Corporation
720
Martinsville Bancshares, Inc
720
Maryland National Corporation
203, 563
Mason State Company
203
Maybaco Company
73
Maynard Savings Bancshares
800
McLean County Bancshares, Inc
438
M c L e o d Bancshares, Inc
438
Mechanicsville Bancshares, Inc
73
Mercantile Bankshares Corporation
71
Mercantile Texas Corporation
53, 71, 119, 191,
256, 320, 385, 434, 522, 557, 676, 717
Merchants Bancorp, Inc
203
Merchants Bancorporation
73
Merchants Bancorporation
387
Merchants Corporation
259
Meredosia Bancorporation, Inc
720
Metropolitan Bancshares, Inc
387
Met-State Corporation
261
Mid-America Banc-System, Inc
440
Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
Mid-Central Bancshares Corporation
Mid-Citco Incorporated
Midland BanCor
Midland California Holdings Limited
Midlands Financial Services, Inc
Midlantic Banks, Inc
Midstate Financial Corp
Midwest National Bancshares, Inc
Mid-West Nebraska Bancshares, Inc
Miles-Advance Bancshares, Inc
Milford Bancorporation
Milford, N . V
Minnehaha Bancshares, Inc
Minto Bancorporation, Inc
Mission Bancshares, Inc
Missouri Delta Bancshares, Inc
M-L Bancshares, Inc
M. M. Enterprises of Plenty wood, Inc
Monroe Bancshares, Inc
Montana Bancsystem, Inc
Monte Vista Bank Corp
Montgomery County Bancshares, Inc
Montrose County Bank Shares, Inc
Moody Bancshares, Inc
Moore Financial Group
Morehouse Bancshares, Inc
Mountain Financial Company
Mountain View Bancorporation, Inc
Mountcorp Bancshares, Inc
MPS Bancorp, Inc
MSB Holding Co., Inc
Mt. Zion Bancorp, Inc
Mullen Banshares, Inc
Multi-Line, Inc
Munter Agency, Inc
Murdock Bancshares, Inc
N A C O D O C H E S Commercial Bancshares, Inc.
Napa Valley Bancorp
Napoleon Bancorporation, Inc
N A P S U B Corporation
National Bancorp of Alaska, Inc
National Bancshares Corporation of Texas .
National Bancshares, Inc
National City Corporation
N B C Bancorporation, Inc
N B D Bancorp, Inc
N B E Bancshares, Inc
N C B Corp
N C N B Corporation
Nelson Bancorp, Inc
N e o s h o Bancshares, Inc
N e w Great Lakes Financial, Inc
N e w London Agency, Inc
N e w Mexico Banquest Corporation
N e w Ulm Financial Corporation
N . F . B . Corporation
Nicol Bankshares Corp
Noble Bank Holding Company, Inc
Northeast Bancorporation, Inc
Northern Cities Bancorporation, Inc
Northern Corporation
Northern Trust Corporation
203, 245,
North Plaza Bancshares, Inc
North Shore Capital Corporation
73,
...
259,
427,
54,
561,
720
720
800
325
387
781
561
203
389
525
645
256
203
203
438
720
203
800
523
438
561
438
121
721
563
438
800
721
721
438
800
561
560
121
438
387
678
438
387
561
717
523
323
561
561
306
323
203
561
800
721
561
325
561
800
438
678
678
678
388
388
800
203
388
Index to Volume 68
Pages
Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
North Side Bancorp, Inc
North Texas Bancshares, Inc
Northwest Bancorporation
Northwest Bancshares, Inc
Oaklawn Financial Corporation
Oak Park Bancorp, Inc
Ocheyedan Bancorporation
Ogden-Saratoga Corporation
Ogle County Bancshares, Inc
Ohnward Bancshares, Inc
Old Colony Co-Operative Bank
Old Stone Corporation
Oliver Bancorporation, Inc
Olla Bancshares, Inc
OMB Financial, Inc
Orbanco Financial Services Corporation
Oregon Bancorp, Inc
Overbrook Bancshares, Inc
Owatonna Bancshares, Inc
Palm Bancorp
Pan American Banks, Inc
Panora Financial Corp
Paraclete Bancorp
Park National Corporation
Patriot Bancorporation
PDR Bancshares, Inc
Peachtree Bancshares, Inc
Pee Dee Bancshares, Inc
Peoples Ban Corporation
Peoples Bancorp, Inc
Peoples Bancorp, Inc
Peoples Bancshares, Inc
Peoples Bancshares, Ltd
Peoples Banking Co. of Cecil County
Permian Bancshares, Inc
Perry Bancshares, Inc
Philadelphia Capital Corporation
Philadelphia National Corporation
Piggott Bankstock, Inc
Pinellas Bancshares Corporation
Pine River Holding Company
Pioneer American Bancorporation
Pioneer Bancorporation
Pioneer Bancshares Corporation
Pioneer Bancshares, Inc
Pioneer Bank Shares
Plainview First National Bancshares, Inc
Plain view Holding Co
Plum Grove Bancorporation, Inc
Pope County Bankshares, Inc
Post-och Kreditbanken PKbanken
Prairie Bancorp., Inc
Princeton Agency, Inc
Progressive Capital Corporation
Provident Bancorp, Inc
Provident National Corporation
P T & S Bancorp
Puget Sound Bancorp
Purdue National Corporation
Ramsey Bancshares, Inc
Ranger Bancshares, Inc
Raymondville State Bancshares, Inc
Red Bird Bancshares, Inc
Rend Lake Bancorp, Inc
678
439
519
323
561
721
259
203
73
259
785
123
523
561
523
198
523
323
388
678
260
679
203
797
388
523
323
71, 119
123
323
800
561
678
388
721
561
388
260
800
388
563
200
439
204
439
800
678
721
388
800
787
203
801
523
561
194
388
679
561
203
388
260
524
524
A87
Bank Holding Company Act—Continued
Orders issued—Cont.
Republic Bancshares, Inc
Republic of Texas Corporation . 60, 73, 195,
Resource Companies, Inc
Ridgeway Bancorp, Inc
Rifle Bank Agency, Inc
Riverton State Bank Holding Company
Robuck, Inc
Rochester Bancshares, Inc
Rock Creek Bancshares, Inc
Rockwall Finance Corporation
Rocky Financial Corporation
Roxton Corporation
Royal Bancshares, Inc
Royal Trust Bank Corp
Royal Trustco Limited
Ruidoso Bank Corporation
SafraCorp
St. James Bancorp. Inc
St. Joseph Bancshares, Inc
Salem Arkansas Bancshares Corporation
San Jose Banco, Inc
San Saba National Corporation
Santa Barbara Bancorp
Santa Fe Trail Banc Shares, Inc
Sarcoxie Bancorp, Inc
Satanta Bancshares, Inc
Savanna Bancorp, Inc
S.B.W. Bancorp, Inc
Schreiner Bancshares, Inc
Seafirst Corporation
Seaport Bancorp, Inc
Second National Bancorp
Security Bancorp
Security Bancorp, Inc
Security Bancorporation, Inc
Security Bancshares, Inc
Security Financial Services, Inc
Security Holding Company
Security National Corporation
Security Pacific Corporation
Security State Investments, Inc
Sesser Bancorporation, Inc
7L Corporation
Shawmut Corporation
Shell Rock Bancorporation
Shively Bancshares Corporation
Shoshone Financial Corporation
Smith Center Bancshares, Inc
SNB Bancshares, Inc
Snook Bancshares, Inc
Solomon Bancshares, Inc
Sonny Wright
Southeast Banking Corporation
Southern Bancorp
Southern Bancorporation, Inc
Southern Bancshares, Inc
Southern Bancshares, Inc
Southern Wisconsin Bancshares Corporation
SouthTrust Corporation
Southwest Bancshares, Inc
Southwest Bancshares, Inc
120, 200,
Southwest Florida Banks, Inc
Southwest Illinois Bancshares, Inc
Southwest Missouri Bancorporation, Inc
800
260, 439
721
721
439
524
717
721
323
260
323
260
561
439
439
388
801
121
524
561
260
260
323
524
323
323
561
721
73, 678
318, 561
260
721
246
561
260
678
439
439
323
557
73
203
678
309
721
439
439
323
524
323
122
561
389
260
324, 722
388
439
439
439, 562
439
562, 800
562
721
260
168
Federal Reserve Bulletin • December 1982
Pages
Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
Spiro Bancshares, Inc
Springfield State Bancorporation, Inc
Stamford Bancshares, Inc
Standard Bancshares, Inc
Stark Bancshares, Inc
State Bancshares, Inc
State Bancshares, Inc
State Bancshares, Inc
State Bank of Bottineau Holding Company
State Bank of India
State Holding Company
State National Bancorp, Inc
Steel City Bancorporation, Inc
Sterling Bancshares, Inc
Stockmens Financial Corporation
Suburban Bancorp, Inc
Sudan Bancshares, Inc
Summersville Bancshares, Inc
Summit Bancorporation
Summit Bancshares, Inc
Sun Banks of Florida, Inc
Sunflower Bancshares, Inc
Svenska Handelsbanken, et al
Table Rock Bancshares, Inc
Tahoka First Bancorp, Inc
Taylor County Bancshares, Inc
TB&T Bancshares, Inc
T-C Holdings, Inc
Tecumseh Bankshares, Inc
Tekamah Agency Company
Telluride Bank Shares, Inc
Telp Corporation
Tennessee National Bancshares, Inc
Tennessee National Bancshares, Inc
Terre du Lac Bancshares, Inc
Terry Bancshares, Inc
Texas American Bancshares, Inc
Texas Commerce Bancshares, Inc.
Thedford Banshares, Inc
Third National Corporation
Three Forks Bancorporation
Thurman State Corporation
Timpson Financial Corporation
Toledo Trustcorp, Inc
Tonica Bancorp, Inc
Town and Country Banshares, Inc
Trabanc
Transworld Bancorp
Transworld Corporation
Traxshares, Inc
Treynor Bancshares, Inc
Trimont Bancorporation, Inc
Trinity Bancshares, Inc
Tri-State Bancorporation, Inc
Tri-State Bankshares, Inc
Tri-State Financial Bancorp
Troup Bancshares, Inc
Trust Company of Georgia
Tucker Brothers, Inc
Tulsa Commerce Bancshares, Inc
Turtle Bancshares, Inc
Tuscola Bancorp, Inc
121
388
439
323
439
323
439
800
562
430
388
562
388
388
324
441
721
439
388
721
374
562
788
388
524
325
121
388
388
563
121
503
524
389
260
562
120, 201,
256, 717, 797
201, 434, 503, 557,
676, 713, 717, 797
560
794
721
261
800
721
121
562
247
524
646
260
562
439
801
73
74
74
439
260, 562
74
196
440
204
Bank Holding Company Act—Continued
Orders issued—Cont.
UBF Corporation
UNB Corporation
Union Bancorp of West Virginia, Inc
Union Bancshares Corp
Union Bancshares, Inc
Union Bank Corporation
Union-Calhoun Investments, Ltd.
Union Colony Bancorp
Union Commerce Corporation
Union Illinois Company
Union National Corporation
United American Bancshares, Inc
United American of Northwest Florida, Inc
United Bancorp., Inc
United Bancorp of Maryland, Inc
United Bancorporation, Inc
United Bancorporation of Alabama, Inc
United Bancorporation of Wyoming
United Bank Corporation of New York
United Banks of Colorado, Inc
United Hamblen, Inc
United Madison Bancshares, Inc
United Midwest Bancshares, Inc
United Missouri Bancshares, Inc
122,
United Southern Bancorp
United Texas Financial Corporation
University State Bancshares, Inc
Uptown Bancorporation, Inc
U.S. Bancorp
256, 320, 434,
U.S.B. Holding Co., Inc
USTCorp
Valley Bancorp, Inc
Valley Bancorporation
Valley Bancshares, Inc
Valley Capital Corp
Valley View Bancshares, Inc
Vesta Bancorporation, Inc
Victoria Bankshares, Inc
324, 389,
Victory Bancshares, Inc
Volunteer Bancshares, Inc
Wabash Valley Bancorporation, Inc
Wakulla Bancorp
Walnut Valley Corporation
Walton Bancshares, Inc
Warrior Capital Corporation
Washington Community Bancshares, Inc
Wayne Bancshares, Inc
Webbers Falls Bancorp, Inc
Wells-Foster Bankshares, Inc
West Alabama Bancshares, Inc
West Carroll Bancshares, Inc
West Shore Bank Corporation
Westbrand, Inc
Western Bancshares of El Paso, Inc
Western Indiana Bancorp
Western National Bancorporation, Inc
Western Oklahoma Bancshares, Inc
Westlake Bancshares, Inc
Wilber Corporation
Williamsburg Holding Company
Wilson Bancshares, Inc
Winnsboro Bancshares, Incorporated
Woodriver Banco, Inc
Worland Holding Company
260,
713,
204,
557,
440,
440,
524
260
256
562
678
388
524
204
721
678
678
524
524
801
324
678
562
722
60
324
389
204
774
722
260
440
440
204
717
801
801
679
801
122
389
524
389
524
722
260
204
722
260
440
389
261
801
679
204
562
261
122
722
801
562
679
122
204
801
324
524
324
204
562
Index to Volume 68
Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
Wyoming Bancorporation
313
Yazoo Capital Corporation
389
Yip Financial Investment, Ltd., et al
197
Youell Sales Department, Inc
204
Zapata Banshares, Inc
389, 441
Zappco Inc
441
Bank Merger Act
Orders issued under
American Bank and Trust Company
563
AmeriTrust Company
65, 441
Bank of New Jersey
325
Bank One of Geauga County
441
Central Bank of the South
441
Connecticut Bank and Trust Company
74, 563
DB Banking Co
123
F & M National Corporation
74
Fidelity Union Bank
325
First Colbert National Bank
716
First Virginia Bank
325, 390, 723, 802
FTB Fifth Bank
205
FTB Fourth Bank
74
FTB Sixth Bank
262
Guardian State Bank
390
Interim Dime Bank of Marietta
205
Michigan Bank-Port Huron
205
Peoples Bank of Danville
325
St. Joseph Valley Bank
673
Toledo Trust Company
262
United Jersey Bank/Southwest
205
United Virginia Bank
680
Bank merger (See mergers)
Bank Secrecy Act, statement on enforcement and utilization, and reporting requirements
481
Banking Affiliates Act of 1982, article
693
Banking organizations, U.S., staff study on foreign
subsidiaries
609
Banking structure, 1970-81, article
77
Banking structure-performance studies, staff study
477
Banks, U.S., statement on foreign investments in
617
Barbee, Joe D., appointed director, San Antonio Branch 278
Barnett, William A., staff study
291
Bartol, George E., Ill, appointed Class C director,
Philadelphia
267
Bleier, Michael E., Assistant General Counsel, resignation
228
Board of Governors (See also Federal Reserve System)
Annual Report to Congress (See Publications)
Consumer Advisory Council (See Consumer Advisory Council)
Interpretations (See Interpretations)
Litigation (See Litigation)
Margin requirements on futures contracts based on
stock indexes, proposed regulatory framework
188
Members
List
263
Martin, Preston, appointment as Member and Vice
Chairman
225
Schultz, Frederick H., resignation
185
Members and officers, list
A70
Policy statements (See specific subject)
Pricing (See Fees)
Publications and releases (See Publications)
Regulations (See Regulations)
Rules (See Rules)
A89
Pages
Board of Governors—Continued
Staff changes
Ashton, Richard M
304
Bleier, Michael E
228
DeBeer, Anne M
539
Dennis, Jack, Jr
539
Dooley, Michael P
416
Downing, Theodore E., Jr
228
Eisenbeis, Robert A
104
Garwood, Griffith L
498
Guinter, Harry A
104
Hart, Janet 0
416, 498
Jacklin, Nancy P
304
Johnson, Elizabeth A
706
Jones, William R
363
Kakalec, John
416
Kohn, Donald L
104
Livingston, George E
539
Lowrey, Barbara R
104
McAfee, James B
104
O'Brien, Frank, Jr
228
Peret, J. Cortland G
539
Ring, P.D
228
Robinson, David L
539
Salus, Naomi P
228
Schleicher, C. William, Jr
539
Schneider, William C., Jr
706
Smith, Dolores S
228
Struble, Frederick M
104
Stull, James
363
Sussan, Sidney M
363
Tinsley, Peter A
104
Staff studies (See Staff studies)
Statements and reports to Congress (See Statements
to Congress)
Bonds
Industrial development, article
135
Municipal revenue, statement on proposals to allow
banks to underwrite
91
Branch banks
Edge corporation, procedure for establishing U.S.
branch and making certain investments, amendment of Regulation K
706
Federal Reserve
Directors (See Directors)
Vice presidents in charge, list
A73
Member banks, amendment of rules regarding formation of foreign "shell" branch
768
Brents, Jerry W., appointed director, New Orleans
Branch
271
Brewer, Robert E., appointed director, Detroit Branch.. 272
Budget, federal, statement
298
Businesses, statement on financial condition of, and its
relationship to monetary and fiscal policy
356
CAMPBELL, Raymond D., elected Class A director,
Cleveland
Canner, Glenn B., staff studies
345,
Capital adequacy
Criteria for applying to mandatory convertible issues
of state member banks and bank holding companies, adoption and revision
361,
Guidelines, issuance by Comptroller of Currency and
Federal Reserve
Capital Assistance Act of 1982, statement
267
610
626
33
353
170
Federal Reserve Bulletin • December 1982
Pages
Chambers, Carolyn S., appointed director, Portland
Branch
279
Change in Bank Control Act (See Bank Control Act)
Check clearing and collection (See Transfers of funds)
Christian, Michael T., appointed director, Nashville
Branch
271
Clearinghouses
Fees for automated clearinghouse services, pricing
policy
Incentive pricing, Board plan to end by 1985
302
Revised schedule, and changes in procedures for
administering clearing balances
755
Cobb, Sue McCourt, appointed director, Miami Branch . 271
Coin wrapping, fee schedule (See Fees)
Commercial banks (See also Member banks)
Construction loans, staff study on interest rates and
terms
401
Contingencies and commitments, staff study on use
by
25
Foreign banks (See Foreign banks)
Insured
Collection of data on past-due loans
628
Profitability, article
453
Commercial paper market since mid-seventies, article . 327
Community Reinvestment Act, staff study
345
Competition, article
527
Comptroller of Currency
Capital adequacy
Criteria for applying to mandatory convertible issues of national banks, adoption and
revision
361,626
Guidelines, issuance by Comptroller and Federal
Reserve
33
Loans, past due, collection of data
628
Concordance of Statistics (See Publications)
Condition reports
Call and income subscription service
416
Data on past-due loans, collection
628
Construction loans at commercial banks, staff study on
rates and terms
401
Consumer Advisory Council
List
All
Meetings
104, 227, 415, 629
New members
34, 756
Nominations, requests
362
Consumer leasing (See Regulations: M)
Cornyn, Anthony G., article
335
Corrigan, E. Gerald, report and announcement on Federal Reserve pricing of services
467, 497
Cousins, Jane C., appointed Class C director, Atlanta . 270
Crawford, William H., appointed director, Oklahoma
City Branch
276
Credit (See also Loans)
Allocation (See Community Reinvestment Act)
Equal Credit Opportunity (See Regulations: B)
Federal Reserve Banks (See Regulations: A)
Interest rates (See Interest on deposits)
Margin requirements (See Margin requirements)
Mortgage and consumer credit markets, article
281
Stocks (See Stock market credit)
Truth in Lending (See Truth in Lending Act)
Credit Control Act, bill to reinstate
483
Cross, Sam Y., reports
143, 341, 579, 739
Curry, Timothy J., staff study
26
DARNELL, John E., Jr., appointed director, Louisville
Pages
DARNELL—Continued
Branch
273
Davis, John B., Jr., appointed Deputy Chairman and
Class C director, Minneapolis
274
DeBeer, Anne M., appointed Assistant Director, Division of Federal Reserve Bank Operations
539
Debits, bank, and deposit turnover series, revision . . . . 704
Debt, public, statements on management
219, 221
Dennis, Jack, Jr., appointed Assistant Director, Division of Federal Reserve Bank Operations
539
Deposit Insurance Flexibility Act, statement
353
Depository institutions (See also specific types)
Civil money penalty
705
Credit extended to, by Reserve Banks (See
Regulations: A)
Interlocking relationships (See Regulations: L)
Reserve requirements (See Regulations: D)
Depository Institutions Deregulation Committee
303
Depository Institutions Interlocks Act
628, 758, 759
Deposits
Interest (See Interest on deposits)
Reserve requirements (See Regulations: D)
Turnover, and bank debits series, revision
704
Deregulation of Product Lines (See Publications)
Directors
Federal Reserve Banks
Chairmen and Federal Reserve Agents... 265-80, A73
Deputy Chairmen
265-80, A73
List
265-80
Federal Reserve branch banks
Chairmen
265-80, A73
List
265-80
Discount rates at Reserve Banks (See Interest rates)
Dividends
103
Federal Reserve Banks
Insured commercial banks, article on profitability . . . 453
Dockson, Robert R., appointed director, Los Angeles
Branch
278
Doman, Lewis A., appointed director, Jacksonville
Branch
270
Dooley, Michael P., appointed Assistant Director, Division of International Finance
416
Downing, Theodore E., Jr., return to Federal Reserve
Bank of Chicago
228
Duffy, Edward W., appointed director, Buffalo Branch.. 266
EARNINGS and expenses (See Income and expenses)
Economy, statements
88, 96,
Edge Act and Agreement corporations
International banking operations (See Regulations: K)
Eisenbeis, Robert A., Senior Deputy Associate Director, Division of Research and Statistics, resignation .
Electronic Fund Transfer Act
State exemptions, amendment of rules
Electronic fund transfers (See Transfers of funds)
Ellis, John W., appointed director, Seattle Branch
Elorriaga, John A., appointed director, Portland Branch
Ence, Lela M., appointed director, Salt Lake City
Branch
Equal Credit Opportunity Act
Regulation B (See Regulations)
Etchart, Gene J., appointed director, Helena Branch ..
Executive officers of member banks, loans to, amendment of Regulation O (See Regulations)
Export trading companies, statement
102
104
306
280
279
279
275
349
Index to Volume 68
Pages
FEDERAL Advisory Council
A72
Federal Deposit Insurance Corporation
Loans, past due, collection of data
628
Federal Open Market Committee
Foreign exchange operations of Treasury and Federal
Reserve for (See Foreign exchange operations)
Members and officers
All
Policy actions, record
39, 105, 229, 364, 417, 541
631, 761
Federal Reserve Act
Banking Affiliates Act of 1982, article on amendments
to section 23A
693
Orders issued under
Citibank Overseas Investment Corporation
671
Reserve requirements, statement on proposed amendment regarding
409
Federal Reserve and Treasury foreign exchange operations (See Foreign exchange operations)
Federal Reserve Banks
Branches (See Branch banks)
Chairmen and Deputy Chairmen
265-80, A73
Credit extended by (See Regulations: A)
Delegation of authority to, amendment of Regulation
K and rules to permit action on certain applications
706, 768
Directors (See Directors)
Discount rates (See Interest rates)
Fees for services to depository institutions (See Fees)
Income and expenses
103
N e w York
Statement by senior vice president on management
of public debt
221
Treasury and Federal Reserve foreign exchange
operations (See Foreign exchange operations)
Presidents and Vice Presidents
A73
Transfers of funds (See Transfers of funds)
Federal Reserve Board (See Board of Governors)
Federal Reserve Regulatory Service (See Publications)
Federal Reserve System (See also Board of Governors)
Foreign exchange operations (See Foreign exchange
operations)
Map
A97
Membership, admissions of state banks
104, 188,
228, 304, 363, 416, 498, 539, 630, 706, 760
Monetary policy, money supply, and operating procedures, paper
13
Federal Reserve System Compliance Handbook (See
Publications)
Fees (for Federal Reserve services to depository institutions)
Automated clearinghouses (See Clearinghouses)
Coin wrapping, fee schedule
36
Float, proposed action
703
Pricing, report
467
Revisions
497
Wire transfer and net settlement services, proposed
revision of charges to depository institutions, and
change
37, 225
Fern, Dale W., elected Class A director, Minneapolis . 274
Financial innovation and monetary policy, article
393
Fitton, Richard, appointed director,
Cincinnati Branch
268
Float, proposed action
703
Food (See Agriculture)
Foreign banking and financing (See Regulations: K)
Foreign banks
Call and income subscription service
416
A91
Pages
Foreign banks—Continued
International banking facilities (See International
banking facilities)
Foreign exchange operations
Application by foreign banking organizations to provide, proposed Board action
759
Treasury and Federal Reserve, reports
143, 341,
579, 739
Foreign investments in U.S. banks, statement
617
Foreign subsidiaries of U.S. banking organizations, staff
study
609
Forest products industries, statement
614
Futures contracts, based on stock indexes, regulatory
framework proposed by Board
188
GARN-ST GERMAIN Depository Institutions A c t . . . .
Garwood, Griffith L.
Appointed Director, Division of Consumer and Community Affairs
Gendreau, Brian Charles, staff study
Goldberg, Michael A., staff study
Gramley, Lyle E.
Financial innovation and monetary policy, article . . .
Housing and forest products industries, statement on
present state and outlook for future
Monetary policy, statement on effects of financial
innovations
Griffin, W.L. Hadley, appointed Class C director, St.
Louis
Group of Ten countries, multilateral financing for
Mexico
Guidelines (See also specific types)
Capital adequacy (See Capital adequacy)
Guinter, Harry A., Assistant Director for Contingency
Planning, Office of Staff Director for Federal Reserve
Bank Activities, resignation
H A N N A N , Richard D., elected Class B director, Cleveland
Hanweck, Gerald A., staff study
Hart, Janet O., Director, Division of Consumer and
Community Affairs, retirement
416,
Hatch, James Stokes, elected Class A director, Boston..
Hatsopoulos, George N., elected Class B director,
Boston
Hennessy, Edward L., Jr., elected Class B director,
New York
Hoffman, Donald D., appointed director, Denver
Branch
Home Mortgage Disclosure Act (See Regulations: C)
Hosley, Joan D., article
Houpt, James V., staff study
Housing (See Real estate)
Humphrey, David B., staff study
Hurley, Evelyn M., article
758
498
25
25
393
614
174
273
538
104
267
25
498
265
265
266
275
681
609
215
327
INCOME and expenses
Call and income subscription service
416
Federal Reserve Banks
103
Insured commercial banks, article on profitability . . . 453
Industrial production
Board releases
28, 86, 165, 217, 292, 347, 403,
479, 535, 612, 701, 745
In recession, article
681
Insured commercial banks
Article on profitability
453
Loans, past due, collection of data
628
172
Federal Reserve Bulletin • December 1982
Pages
Interest on deposits (See also Interest rates)
Changes (See Regulations: Q)
Civil money penalty
705
Interest rates (See also Interest on deposits)
Construction loans at commercial banks, staff study
on rates and terms
401
Federal Reserve Banks
Changes
497, 537, 703, 755
' 'Receiver's certificates'' as collateral for advances . 413
Joint Resolution to lower, statement
30
Interlocking bank relationships (See Regulations: L)
International banking facilities
Article
565
Call and income subscription service
416
Purchases and sales of financial assets in secondary
market, interpretation
35
International banking operations (See Regulations: K)
International Monetary Fund
538
International transactions, U.S., in 1981, article
207
Interpretations
Consumer leasing, commentary
302
Data processing activities permissible for bank holding companies
537
Equal Credit Opportunity
363, 703
Interest on deposits, loans made upon security of time
deposit
704
International banking facilities
35
Secondary market for negotiable time deposits issued
by bank, arrangements permissible
538
Truth in lending, commentary
303-04
Investments
Bank holding companies, in nonvoting shares of other
holding companies or banks, Board policy statement
413
Foreign, in U.S. banks, statement
617
JACKLIN, Nancy P., appointed Assistant General
Counsel for International Banking
Jennings, Joseph A., elected Class A director, Richmond
Johnson, Douglas Eugene, elected Class A director,
Philadelphia
Johnson, Elizabeth A., appointed Assistant Director,
Data Systems, Division of Data Processing
Jones, William R., appointed Manager, Operations Review Program, Office of Board Members
Jorgenson, Wallace J., appointed director, Charlotte
Branch
KAKALEC, John, Controller, retirement
Kerr, R.I., Jr., appointed director, Louisville Branch..
Key, Sydney J., article
Kohn, Donald L., appointed Senior Deputy Associate
Director, Division of Research and Statistics
304
268
267
706
363
269
416
273
565
104
LAUFENBERG, Daniel E., article
135
Leasing, consumer (See Regulations: M)
Lee, William S., Ill, appointed Class C director, Richmond
269
Litigation
Cases pending involving Board of Governors . . . 74, 123,
205, 262, 326, 390, 442, 525, 564, 680, 723, 802
Livingston, George E., appointed Controller
539
Lloyd-Davies, Peter R., staff study
25
Loans (See also Credit)
Construction, at commercial banks, staff study on
Pages
Loans—Continued
interest rates and terms
401
Executive officers of member banks, amendment of
Regulation O (See Regulations)
Mortgages (See Real estate)
Past-due, collection of data
628
Stocks (See Stock market credit)
Lowrey, Barbara R., appointed Associate Secretary,
Office of Secretary
104
MADDUX, Thomas H., appointed director, Baltimore
Branch
Margin requirements
Effectiveness, scope, and structure of federal regulation of, Board study
Futures contracts (See Futures contracts)
Over-the-counter stocks (See Over-the-counter margin stock list)
Regulations G, T, and U (See Regulations)
Martin, Preston
Appointed Member and Vice Chairman, Board of
Governors
Credit Control Act, statement on bill to reinstate
Federal Reserve Act, statement on proposed amendment to exempt from reserve requirements certain
reservable liabilities at all depository institutions ..
Thrift institutions, statement on Board's views on
bills to address problems facing
Martinson, Michael G., staff study
Mathers, William L., elected Class B director, Minneapolis
Matthews, William M., Jr., appointed director, Memphis Branch
McAfee, James B., appointed Associate Secretary, Office of Secretary
McDade, Thomas B., appointed director, Houston
Branch
McKenna, Quentin C., appointed director, Pittsburgh
Branch
Member banks (See also Depository institutions)
Credit extended to, by Reserve Banks (See Regulations: A)
Interlocking relationships (See Regulations: L)
Loans to executive officers, amendment of Regulation
O (See Regulations)
Securities (See Securities)
State member banks (See State member banks)
Sweep accounts, petition regarding
Transfers of funds (See Transfers of funds)
Mergers (See also Bank Merger Act)
Applications, new pamphlet
Bank acquisitions, mergers, or consolidations, proposed Board policy statement
Theory of probable future competition, article on
applying
Miller, Paul G., elected Class B director, Richmond...
Milsom, Robert C., appointed director, Pittsburgh
Branch
Monetary aggregates
Framework of targeting, statement on conduct of
monetary policy with focus on
Staff study
Monetary Control Act
303,
Monetary policy
Federal Reserve's operating procedures and monetary policy and money supply, paper
269
705
225
483
409
353
609
274
274
104
277
268
630
759
188
527
268
268
405
291
759
13
Index to Volume 68
Pages
Monetary policy—Continued
Financial innovation and monetary policy, article . . .
Remarks excerpted from informal talk
S t a t e m e n t s . . . . 96, 102, 171, 174, 356, 405, 487, 494,
Monetary Policy Reports to Congress
125,
Money market deposit account
Money market fund shares, statement
Money stock, revision
Money supply, monetary policy, and Federal Reserve's
operating procedures, paper
Moran, Michael J., article
Mortgages (See Real estate)
Mutual funds, statement on proposals to allow banks to
offer
Mutual savings banks, article
NATIONAL banks
Capital adequacy
Criteria for applying to mandatory convertible issues, adoption and revision
361,
Guidelines, issuance by Comptroller of Currency
and Federal Reserve
Loans, past due, collection of data
Neblett, G. Rives, appointed director, Memphis Branch.
Neel, C. Warren, appointed director, Nashville Branch .
Negotiable order of withdrawal accounts, amendment of
Regulations D and Q
758,
Nelson, Sheffield, appointed director, Little Rock
Branch
Nielson, James E., appointed director, Denver Branch
Nonmember depository institutions
Reserve requirements (See Regulations: D)
Small, extension of deferral of deposit reporting and
reserve requirements
Nordstrom, John N., appointed director, Seattle Branch
393
691
747
443
758
174
185
13
725
91
725
626
33
628
274
271
759
273
276
303
279
O'BRIEN, Frank, Jr., appointed Deputy Assistant to
Board
228
Opper, Barbara Negri, article
453
Over-the-counter margin stock list
Criteria for inclusion
362, 371
Revision
497
Supplements
185,629
PARKINSON, Patrick M., article
Partee, J. Charles
Bank participation in securities markets, statement on
proposals to allow underwriting of municipal revenue bonds and offering of mutual funds
Businesses, statement on financial condition of, and
its relationship to monetary and fiscal policy
Financial markets, statement on important issues
related to regulation
Penn Square Bank
Pasman, James S., Jr., appointed director, Pittsburgh
Branch
Payments mechanism (See Transfers of funds)
Penn Square Bank, statement
Peret, J. Cortland G., Deputy Associate Director, Division of Research and Statistics, retirement
Perlis, Sharon A., appointed director, New Orleans
Branch
Pricing of Federal Reserve services (See Fees)
Production, industrial (See Industrial production)
Publications in 1982 (including releases)
Annual Report to Congress
207
91
356
294
753
268
753
539
272
227
A93
Pages
Publications in 1982—Continued
Annual Statistical Digest, 1981
Call and income subscription service
Concordance of Statistics
Deregulation of Product Lines, proceedings of colloquium held at Board
Federal Reserve Regulatory Service and handbooks,
revised rates
Federal Reserve System Compliance Handbook, supplement
List
Over-the-counter margin stock list (See Over-thecounter margin stock list)
"Processing Bank Holding Company and Merger
Applications," pamphlet
"Weekly Report of Assets and Liabilities of International Banking Facilities," new statistical release .
629
416
629
705
37
303
A74
759
228
RADDOCK, Richard D., article
681
Real estate
Home mortgage disclosure (See Regulations: C)
Housing and forest products industries, statement... 614
Mortgage and consumer credit markets, article
281
Redlining, staff study
610
Regulations (See also Rules)
A, Extensions of Credit by Federal Reserve Banks
Discount rates, amendments to reduce
45, 551
637, 707
B, Equal Credit Opportunity
Business credit provisions, withdrawal of proposed
amendment
363,703
Credit scoring, interpretations
363, 703
C, Home Mortgage Disclosure
Disclosure and reporting form, final version
Ill
State exemptions from disclosure requirements . . . 705
D, Reserve Requirements of Depository Institutions
Contemporaneous requirements, amendments 625, 707
Deferral for small nonmember institutions 303, 626, 759
Exemption of first $2.1 million in reservable liabilities, amendment
758
Money market deposit account, creation
758
Negotiable order of withdrawal accounts, amendment affecting
758
Phasing-in
Certain new institutions, amendment
226, 305
Former member banks, amendment
767
Member banks and certain other institutions,
amendment
758
Reporting requirements for institutions experiencing above-normal growth, amendment
226
Time deposits
New 7- to 13-day category, amendments to define 551
Nonpersonal, long-term, amendment
302, 371
Transaction accounts
Adjustment of dollar amount subject to lowest
reserve requirements, amendment
34, 45, 759
Linked to checks or third-party transfers, temporary amendment and revision
630, 758
E, Electronic Fund Transfers
Amendments to reduce regulatory burdens... 626, 709
Small financial institutions subject to, proposed
amendments to assist
227
G, Securities Credit by Persons Other Than Banks,
Brokers, or Dealers
Margin requirement rules, amendments to simplify
and clarify
103,112
174
Federal Reserve Bulletin • December 1982
Pages
Regulations—Continued
Over-the-counter margin stocks, amendment of criteria for inclusion on Board's list
362,
H, Membership of State Banking Institutions in the
Federal Reserve System
Regulatory changes adopted by Board, amendment
to conform
Transfer agents, amendment
J, Collection of Checks and Other Items and Transfers of Funds
Checks drawn on closed institutions, proposed
amendment
K, International Banking Operations
Permissible activities for Edge corporations,
amendment to add to list
226,
Procedures for establishing U.S. branch of Edge
corporation and for making certain investments,
amendments
706,
L, Management Official Interlocks
Proposed changes to simplify and clarify
Ten-year grandfathered period for officials under
certain conditions, amendment
628,
M, Consumer Leasing (formerly part of Regulation Z)
Commentary
Deferral of mandatory effective date to implement
Truth in Lending Simplification and Reform
Act, amendments
37,
O, Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks
Limitations and requirements for prior approval of
bank's board of directors, amendments
703,
Q, Interest on Deposits
Depository Institutions Deregulation Committee
actions, amendments to conform with
46,
371
373
305
227
237
767
630
710
302
111
768
538
637
Negotiable order of withdrawal accounts, amendment affecting
759
Repurchase agreements on certain U.S. government or agency securities, amendment to permit
member banks to issue automatically renewable
agreements
552
Time deposits
Issuance in book-entry form, a m e n d m e n t . . . . 538, 637
Loans made upon security of, interpretation
704
Secondary market for negotiable deposits issued by
bank, arrangements member bank may make to
provide for, interpretation
538
Withdrawal before maturity, amendment to temporarily suspend penalty
Ill
T, Credit by Brokers and Dealers
Collateral, amendments
363, 373, 630
Margin requirement rules, amendments to simplify
and clarify
103,112
Private mortgage pass-through securities as collateral, amendment
759
Overhaul, proposed, as part of Regulatory Improvement Project
227
Over-the-counter margin stocks, amendment of criteria for inclusion on Board's list
362, 371
U, Credit by Banks for the Purpose of Purchasing or
Carrying Margin Stocks
Margin requirement rules, amendments to simplify
and clarify
103,112
Over-the-counter stocks, amendment of criteria for
inclusion on Board's list
362, 371
Pages
Regulations—Continued
Y, Bank Holding Companies and Change in Bank
Control
Arranging equity financing, proposed amendment . . 36
Data processing activities permissable, amendment
and related interpretation
537, 552
Management consulting advice and management
interlocks, amendment
227, 237
Transfer agents, amendment
305
Z, Truth in Lending
"Arranger" of credit, definition, amendment
185, 189
Commentary, revision and proposed updating 303-04,
627
Deferral of mandatory effective date to implement
Truth in Lending Simplification and Reform
Act
37,111
Reduced rate financing in disclosures, proposed
amendment
498
Regulatory Improvement Project
Regulation T, proposed overhaul
227
Repurchase agreements
Civil money penalty regarding payment of interest . . 705
U.S. government and agency issues
552
Reserve requirements
Depository institutions (See Regulations: D)
Federal Reserve Act, statement on proposed amendment regarding
409
Money market fund shares, statement on imposing.. 174
Revisions
704
Bank debits and deposit turnover series
Money stock
185
Rhoades, Stephen A., staff study
477
Ring, P.D., Adviser, Division of Federal Reserve Bank
Operations, retirement
228
Robinson, David L., appointed Associate Director, Division of Federal Reserve Bank Operations
539
Rose, John T., staff study and paper
26, 693
Rosine, John, article
l
Ross, Don, appointed director, Cincinnati Branch
268
Rough, Robert A., elected Class A director,
New York
266
Rules (See also Regulations)
Availability of information, amendment
706
Delegation of authority, amendments, 189, 306, 423, 706,
711, 768
Ryan, John E., statement
481
SALUS, Naomi P., appointed Special Assistant to
Board
Saucedo, Mary Carmen, appointed director, El Paso
Branch
Savage, Donald T., article
Savings and loan associations, article
Schleicher, C. William Jr., appointed Associate Director, Division of Federal Reserve Bank Operations...
Schneider, William C., Jr., appointed Assistant Director, Data Services, Division of Data Processing
Schroeder, William M., appointed director, Birmingham
Branch
Schultz, Frederick H.
Interest rates, Joint Resolution to lower
Resignation as Member and Vice Chairman, Board of
Governors
Schwaegler, Bruce M., appointed director, Los Angeles
Branch
228
277
77
725
539
706
270
30
185
279
Index to Volume 68
Pages
Securities credit
Over-the-counter (See Over-the-counter margin stock list)
Stocks (See Stock market credit)
Securities markets, bank participation in, statement on
proposals
91
Seiders, David F., staff study
401
Shaver, Jesse M., elected Class B director, St. Louis.. 273
Smith, Dolores S., temporary appointment as Assistant
Secretary of Board
228
Spindt, Paul A., staff study
291
Staff studies
Commercial banks, use of contingencies and commitments
25
Community Reinvestment Act and credit allocation . 345
Divisia monetary aggregates: Compilation, data, and
historical behavior
291
Foreign subsidiaries of U.S. banking organizations .. 609
Interest rates and terms on construction loans at
commercial banks
401
Margin requirements
705
Multibank holding companies, competition and performance in banking markets
26
Redlining: Research and federal legislative
response
610
Structure-performance studies in banking
477
U.S. payments mechanism, costs, scale economies,
competition, and product mix
215
State member banks
Capital adequacy
Criteria for applying to mandatory convertible issues, adoption and revision
361, 626
Guidelines, issuance by Comptroller of Currency
and Federal Reserve
33
Membership in Federal Reserve System (See Federal
Reserve System)
Mergers (See Mergers)
Regulations relating to (See Regulations: H)
Statements to Congress (including reports)
Bank participation in securities markets, proposals to
allow underwriting of municipal revenue bonds and
offering of mutual funds
91
Bank Secrecy Act, enforcement and utilization, and
reporting requirements
481
Businesses, financial condition of, and its relationship
to monetary and fiscal policy
356
Congressional decisions on spending and revenue
measures, implications for fiscal position of government and for financial markets
167, 170
Credit Control Act, bill to reinstate
483
Debt management
219, 221
Delayed funds availability
178
Economy
88, 96, 102
Export trading companies
349
Federal budget, resolution to amend Constitution to
encourage a balanced budget
298
Federal Reserve Act, proposed amendment to exempt
from reserve requirements certain reservable liabilities at all depository institutions
409
Financial markets, important issues related to regulation
294
Foreign investments in U.S. banks
617
Housing and forest products industries, present state
and outlook for future
614
Interest rates, Joint Resolution to lower,
30
Monetary and budgetary situation in light of economic
objectives
494
A95
Pages
Statements to Congress—Continued
Monetary policy
96, 102, 171, 174, 405,
494,
Monetary Policy Reports to Congress
125,
Penn Square Bank
Thrift institutions, Board's views on bills to address
problems facing
Steptoe, Roosevelt, appointed director, New Orleans
Branch
Sternlight, Peter D., statement
Stock indexes, proposed regulatory framework for futures contracts based on
Stock market credit
Margin requirements, Board study
Over-the-counter stocks (See Over-the-counter margin stock list)
Regulations G, T, and U (See Regulations)
Stock market, futures contracts (See Futures contracts)
Stocks
Over-the-counter (See Over-the-counter margin stock
list)
Struble, Frederick M., transferred to Assistant Director
in Program Direction, Division of Research and
Statistics
Stull, James, assignment to Federal Reserve Bank of
Dallas
Sussan, Sidney M., appointed Assistant Director, Division of Banking Supervision and Regulation
Sweep accounts by member banks, petition regarding .
TABLES (for index to tables published monthly, see
guide at top of p. A81; for special tables published
during year, see list on p. A69)
Bank debits and deposit turnover series, revision . . .
Talley, Samuel H., paper
Thomas, Gerald W., appointed director, El Paso Branch
Thrift institutions
Article
Problems facing, statement on Board's views on bills
to address
Tinsley, Peter A., appointed Assistant Director, Division of Research and Statistics
Tooley, William L., appointed director, Los Angeles
Branch
Transfers of funds
Checks
Processing and collection procedures, proposed
changes
Regulation J (See Regulations)
Electronic fund and wire transfers (See Regulations:
E)
Fees for Federal Reserve services to depository institutions (See Fees)
U.S. payments mechanism, staff study
Trapp, Marvin D., appointed director, Charlotte Branch
Treasury Department
Foreign exchange operations (See Foreign exchange
operations)
Truex, G. Robert Jr., appointed director
Seattle Branch
Truth in Lending Act
Regulation Z (See Regulations)
State exemptions
303, 306, 538,
U.S. GOVERNMENT and agency securities
Repurchase agreements, certain, amendment of Reg-
487
747
443
753
353
272
221
188
705
104
363
363
630
704
693
277
725
353
104
278
498
215
269
279
629
176
Federal Reserve Bulletin • December 1982
Pages
U.S. Government and agency securities—Continued
ulation Q to permit member banks to issue automatically renewable agreements
552
U.S. international transactions in 1981, article
207
VOLCKER, Paul A.
Congressional decisions on spending and revenue
measures, statement on implications for fiscal position of government and for financial markets
167,
Economy, statements
88, 96,
Federal budget, statement on resolution to amend
Constitution to encourage a balanced budget
Monetary and budgetary situation in light of economic
objectives, statement
Monetary policy
Remarks excerpted from informal talk
170
102
298
494
691
Pages
Monetary policy—Continued
Statements to Congress .
96, 102, 171, 174, 405, 487,
494, 747
WALLICH, Henry C.
Export trading companies, statement
349
Foreign investments in U.S. banks, statement
617
Weyerhauser, George H., elected Class B director, San
Francisco
278
Winer, Anthony S., article
527
Wire transfers (See Transfers of funds)
Wolkowitz, Benjamin, staff study
25
ZAHORIAN, Stephen G., appointed director, Miami
Branch
271
Zearley, Thomas L., article
335
A97
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
LEGEND
Boundaries of Federal Reserve Districts
®
Federal Reserve Bank Cities
Boundaries of Federal Reserve Branch
Territories
•
Federal Reserve Branch Cities
Federal Reserve Bank Facility
Q
Board of Governors of the Federal Reserve
System
Publications of Interest
FEDERAL RESERVE REGULATORY
SERVICE
To promote public understanding of its regulatory
functions, the Board publishes the Federal Reserve
Regulatory Service, a three-volume looseleaf service
containing all Board regulations and related statutes,
interpretations, policy statements, rulings, and staff
opinions. For those with a more specialized interest in
the Board's regulations, parts of this service are
published separately as handbooks pertaining to monetary policy, securities credit, and consumer affairs.
These publications are designed to help those who
must frequently refer to the Board's regulatory materials. They are updated at least monthly, and each
contains conversion tables, station indexes, and a
subject index.
The Monetary
Policy
and Reserve
Requirements
Handbook contains Regulations A, D, and Q plus
related materials. For convenient reference, it also
contains the rules of the Depository Institutions
Deregulation Committee.
The Securities
Credit Transactions
Handbook
con-
tains Regulations G, T, U, and X, dealing with extensions of credit for the purchase of securities, together
with all related statutes, Board interpretations, rulings, and staff opinions. Also included is the Board's
list of OTC margin stocks.
The Consumer
and Community
Affairs
Handbook
contains Regulations B, C, E, M, Z, AA, and BB and
associated materials.
For domestic subscribers, the annual rate is $175 for
the Federal Reserve
Regulatory
Service
and $60 for
each handbook. For subscribers outside the United
States, the price including additional air mail costs is
$225 for the Service and $75 for each Handbook. All
subscription requests must be accompanied by a check
or money order payable to Board of Governors of the
Federal Reserve System. Orders should be addressed
to Publications Services, Federal Reserve Board, 20th
Street and Constitution Avenue, N.W., Washington,
D.C. 20551.
Publications of Interest
FEDERAL RESERVE
PUBLICATIONS
CONSUMER
CREDIT
The Federal Reserve Board publishes a series of
pamphlets covering individual credit laws and topics,
as pictured below. The series includes such subjects as
how the Equal Credit Opportunity Act protects women against discrimination in their credit dealings, how
to use a credit card, and how to use Truth in Lending
information to compare credit costs.
The Board also publishes the Consumer Handbook
to Credit Protection
Laws,
a complete guide to con-
sumer credit protections. This 44-page booklet explains how to use the credit laws to shop for credit,
apply for it, keep up credit ratings, and complain about
an unfair deal.
Protections offered by the Electronic Fund Transfer
Act are explained in Alice in Debitland. This booklet
offers tips for those using the new "paperless" systems for transferring money.
Copies of consumer publications are available free
of charge from Publications Services, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551. Multiple copies for classroom use are also
available free of charge.
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LBSNO
LMHNO
LE4SING
LE4SMG
TRUTH IN LE4SING
What
Ituthln
Lending
Means
ToYou
if
You
Borrow
T o Buy
Stock—
The
Equal
Credit
Opportunity
Act
and...
WOMF.N
IF
YOU USE A
CREDIT
CARD
@FedFRASER