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VOLUME 73 •

NUMBER 12 •

\
£

DECEMBER 1987

FEDERAL RESERVE

V BULLETIN

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • Michael Bradfield • S. David Frost
• Griffith L. Garwood • Donald L. Kohn • Michael J. Prell • Edwin M. Truman

The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by Mendelle T.
Berenson, the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.




Table of Contents
Reserve Banks and says that the Advisory
Councils have become a valuable part of the
informal structure of the Federal Reserve
System, before the Subcommittee on
Domestic Monetary Policy of the House
Committee on Banking, Finance and Urban
Affairs and the Subcommittee on Procurement, Innovation, and Minority Enterprise
Development of the House Committee on
Small Business, October 30, 1987.

893 HOUSING AND MORTGAGE MARKETS.THE POST-1982
EXPANSION

This article examines factors behind the
boom in housing construction that followed
the 1980-82 recession and considers the
near-term outlook for the housing market.
904 INDUSTRIAL

PRODUCTION

Industrial production increased an estimated 0.2 percent in September.
914
907 STATEMENTS

TO

CONGRESS

Alan Greenspan, Chairman, Board of Governors, explores the structure of the financial services industry, with an emphasis on
the regulatory framework that applies to
banking and securities activities, and says
that the Board hopes to be in a position to
advise the Congress on how best to implement the changes that are urgently needed
to assure that the financial system continues to serve public policy goals, before the
Subcommittee on Telecommunications and
Finance of the House Committee on Energy
and Commerce, October 5, 1987.
910 Martha R. Seger, Member, Board of Governors, discusses home equity lines of credit
and H.R. 3011, a proposed bill to amend the
Truth in Lending Act to require creditors to
provide consumers with more information
about home equity programs in advertisements and in initial account disclosure
statements, before the Subcommittee on
Consumer Affairs and Coinage of the House
Committee on Banking, Finance and Urban
Affairs, October 6, 1987.
913 Wayne D. Angell, Member, Board of Governors, reviews the functioning and effectiveness of the small business and agricultural Advisory Councils to the Federal




ANNOUNCEMENTS

Announcement by Chairman Greenspan on
the availability of liquidity to the financial
system.
Revised list of OTC stocks subject to margin regulations now available.
Publication of Annual Statistical
1986.

Digest,

List of "Bank Holding Companies and Subsidiary Banks as of December 31, 1986,"
now available.
Changes in Board staff.
Admission of six state banks to membership
in the Federal Reserve System.
919 LEGAL

DEVELOPMENTS

Various bank holding company, bank service corporation, and bank merger orders;
and pending cases.
AI FINANCIAL

AND BUSINESS

STATISTICS

A3 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A53 International Statistics
A69 GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND SPECIAL
TABLES

A70 BOARD OF GOVERNORS
AH

AND STAFF

FEDERAL OPEN MARKET
COMMITTEE
AND STAFF; ADVISORY
COUNCILS

A79 INDEX TO STATISTICAL
A81 INDEX TO VOLUME

TABLES

73

All

BOARD

SCHEDULE OF RELEASE DATES FOR
PERIODIC
RELEASES




A93 FEDERAL RESERVE BANKS,
AND OFFICES

BRANCHES,

A94 MAP OF FEDERAL RESERVE

A74 FEDERAL RESERVE
PUBLICATIONS

SYSTEM

Housing and Mortgage Markets:
The Post-1982 Expansion
Stuart A. Gabriel, of the Board's Division of
Research and Statistics, wrote this article. Mark
T. Cammarota and James P. Rothberg provided
research assistance.
Housing construction rebounded strongly in the
years following the 1980-82 recession. A confluence of positive movements in a wide range of
economic and demographic factors fueled the
boom in construction. Interest rates on conventional fixed-rate mortgages declined from their
1981 high of more than 18 percent to a nine-year
low of about half that amount in early 1987.
Lower mortgage rates and higher household income made housing more affordable, releasing
demand pent up from previous years. Changes in
tax laws, enacted in 1981, also stimulated the
construction of housing, particularly of rental
units. A rise in household formations similarly
boosted construction activity. Early years of the
recovery were further marked by the robust
economic expansion and increases in construction in growing Sunbelt areas.
Moreover, new financial instruments for
homebuyers and investors aided the surge in
housing activity. New lending instruments in the
primary
market—especially
adjustable-rate
mortgages (ARMs), which were offered at initial
interest rates well below those of their fixed-rate
counterparts—helped make housing more affordable. Also, lenders in the primary market, including thrift institutions, increasingly sold new
mortgages in the secondary market; the "securitization" of many of these loans in the form of
both standard pass-throughs and new derivative
securities has accelerated in recent years. By
broadening the base of mortgage finance, securitization helped reduce housing's vulnerability to
nonprice credit rationing.
Under the influence of these developments,
the pace of housing starts quickened from 1.1



million units per year in the 1981-82 period to
almost 1.75 million units during 1983-86 (chart
1). The average annual rate of new-home sales
during 1983-86 jumped 60 percent from the relatively low 1981-82 rate; resales of existing
homes advanced by about 40 percent. By mid1987, however, some determinants of housing
construction, especially fixed-rate mortgage interest rates, took a turn for the worse, causing
perceptible contraction in housing activity and
raising concern about prospects for the housing
market.

HOUSING

AFFORDABILITY

The cost of homeownership strongly influences
the demand for housing. Indexes of housing
affordability measure costs of homeownership as
a percentage of average household disposable
income. One index uses mortgage payments on a
standard-quality new home as a proxy for costs;
the loan amount is 80 percent of the home's
value. Another, more comprehensive index adds
operating and transactions expenses, tax effects,
and expected appreciation to its measure of
homeownership costs.
By early 1987, mortgage interest rates had
declined precipitously (chart 2), house prices had
1. Total housing starts
Thousands of units
2,000

1,600

1,200

1975

1980

1985

1987

894

Federal Reserve Bulletin • December 1987

2. Contract interest rate on conventional
fixed-rate mortgage commitments
Percent

1975

1980

1985

1987

risen only moderately, and household income
had strengthened from levels of the 1980-82
recession. As a result, mortgage costs for a
standard-quality new home, which had reached
as high as 45 percent of mean household disposable income during the early 1980s, fell off
sharply, to about 20 percent of household income
in early 1987 (chart 3). The post-recession resurgence in housing demand was due largely to
sharp improvements in this measure of housing
affordability. Although the mortgage burden rose
markedly in mid-1987 because of runups in mortgage interest rates, it remained moderate relative
to its levels of the previous 10 years.
The trend of the more comprehensive index of
housing affordability during the post-1983 period
was similar to that of the mortgage-servicing
index. However, the comprehensive index remained higher than the mortgage-servicing index
during the post-recession period and high relative
to the late 1970s, largely because of reduced
price appreciation and higher real interest rates.
Lower expected appreciation in home prices
reduces housing affordability as measured by the
comprehensive index. In the calculation of the
3. Housing affordability 1

1. See text for description of indexes. Income is average household
disposable income.




comprehensive index, expected capital gains are
represented by changes in the price of the average quality-adjusted home. In one version of the
index, the price changes cover the preceding
three years; in another, the preceding five years.
Expectations about longer-term appreciation are
relevant to homebuyers, who typically expect to
stay for several years. If price expectations are
based on experience, homeownership may have
been perceived to be substantially more affordable during the late 1970s and early 1980s than
the mortgage-servicing burden suggested. Likewise, moderated gains in housing prices during
the later 1980s relative to the earlier period
tended to keep the comprehensive measure high,
while the mortgage-servicing burden showed a
marked drop.
Many series on housing prices are available for
use in constructing indexes of housing affordability. The Census Bureau publishes a qualityadjusted series of new home prices, which was
used in the above analysis. The quality-adjusted
price series measures variations in the price of
new homes, taking account of basic features
(floor area, number of bathrooms, presence of air
conditioning, and so on). The regional distribution of home sales used in calculating the qualityadjusted index is that of the base year, 1982.
Inflation of housing prices as measured by the
adjusted series has diverged sharply from that in
the unadjusted series in recent years; average
prices of new homes have been rising much more
quickly than the prices of constant-quality
homes. This divergence stems in part from improvements in the size and attributes of new
homes relative to their 1982 counterparts. The
average living area of new homes increased 12
percent, to 1,864 square feet, between 1982 and
mid-1987; lot size rose from 11,554 to 13,061
square feet. Furthermore, new homes sold in
mid-1987 were significantly more likely to include such amenities as a fireplace, basement,
garage, and more than two bathrooms. Such
improvements are to be expected given the increases in household income and wealth since
the relatively depressed base year; they also
reflect the greater proportion of older, more
affluent repeat buyers among those purchasing
new homes. According to surveys by the Na-

Housing and Mortgage Markets: The Post-1982 Expansion

WHY HAS THE HOMEOWNERSHIP
DECLINED?

RATE

895

Rates of homeownership, by age of household
head, selected years, 1981-87
Percent

The homeownership rate among American
families rose steadily in the decades after
World War II. By the 1970s, more than 6 of
every 10 families owned a home. During the
1980s, however, the homeownership rate contracted by about 2 percentage points (see chart).
Homeownership rate

1

Percent

i

i

i

i

i

i

i

i

i

i

i

i

1972 1974
1976 1978
1980 1982
1. Percent of households owning a home.

i

i

1984

i
1986

As indicated in the accompanying table,
ownership rates rise appreciably with age. Advancing age is often accompanied by growth in
income, at least through middle age, sufficient
to make a home more affordable; established,
older households move less often than younger
families and are therefore also more likely to
buy a home.
Homeownership rates in the 1980s declined
primarily among households headed by

tional Association of Home Builders, the proportion of first-time homebuyers among all newhome buyers declined from about 40 percent in
1984 to about 36 percent in the first quarter of
1987. In addition, the substantial increase in the
share of homes built in high-priced metropolitan
areas and in California has boosted the pace of
housing price inflation as measured by the unadjusted series of new-home prices. This divergence arises because the quality-adjusted index
of new-home prices weights the weak rates of
price inflation in "oil-patch" states more
strongly than the unadjusted series does and
weights the housing price advances in California
and elsewhere more weakly.




Age (years)

1981

1985

19871

Less than
30
30-39
40-64
65 or more...

34.4
63.1
77.3
73.9

29.8
58.8
75.0
75.0

29.0
58.3
76.3
75.1

All

65.4

63.9

63.8

1. First half.
SOURCE. Bureau of the Census.

someone under age 40—a falloff of about 5
percentage points between 1981 and 1987. In
that period, the cost of owning—as measured
by the indexes discussed in the text—rose
significantly relative to the residential rent
component of the consumer price index, especially during the cyclical downturn of the early
1980s. Younger people as a group are the most
sensitive to the relative costs of owning and
renting; older households typically have already purchased homes and do not respond to
the higher costs of owning—as measured by
the indexes discussed in the text—by changing
to renter status. A report from the Joint Center
for Housing Studies estimates that about
800,000 prospective first-time homebuyers delayed the purchase of a home during 1979-83
because of the relatively high costs of owneroccupancy.

Changes in unadjusted values of new or existing homes imply levels of housing affordability
lower than do changes in the quality-adjusted
series; however, most indexes point to improved
affordability from 1983 through early 1987,
largely because of the downtrend in interest
rates. Although declines in the mortgageservicing burden figured heavily in the postrecession resurgence in housing demand, those
effects were partially offset by the relatively high
levels of comprehensive homeownership costs.
Housing affordability on all indexes deteriorated
in the wake of the interest rate increases of
mid-1987, causing housing activity to fall somewhat.

896

TAX

Federal Reserve Bulletin • December 1987

CHANGES

The 1981 Economic Recovery Tax Act (ERTA),
which dramatically altered many features of the
federal tax system, stimulated housing construction. The act made major changes in the treatment of rental housing: it reduced the taxation of
capital gains, accelerated depreciation writeoffs,
and provided incentives for the expanded use of
real estate tax shelters that allow individuals to
shelter earned income with "passive" real estate
losses. These changes substantially increased
investor returns on rental housing. In the wake of
those tax provisions and the other positive developments for housing already recited, the pace
of multifamily housing starts rose by about twothirds, from 378,000 units in 1981 to 635,000 units
in 1983. Within that sector, the biggest increase
was in the construction of rental units rather than
of condominiums.
Other effects of the tax bill, especially the
rapid expansion in real estate limited partnerships, also may have indirectly contributed to the
acceleration of multifamily housing construction.
Large public syndications—those with 30 or
more limited partners—became much more popular after the passage of ERTA. During 1984-85,
equity funds raised through public and private
syndications reached about $20 billion. Combined with mortgage borrowing, this sum would
have financed almost all the considerable rental
housing construction of that period. However,
much of the partnership money either funded
nonresidential construction or was invested in
existing residential structures. Tax-driven syndications may have stimulated new construction
indirectly by bidding up the prices of existing
structures and improving the profitability of new
multifamily projects.
Tax-exempt mortgage revenue bonds, issued
by state and local governments, also contributed
to the surge in multifamily housing construction
during the post-recession period. A 1980 amendment to the Internal Revenue Code directed the
use of this instrument for providing housing to
lower- and middle-income individuals. The annual issuance of such bonds, only $1 billion in
1980-81, subsequently rose to $5 billion in 1982
and skyrocketed to $20 billion in 1985. The
General Accounting Office (GAO) estimated that




approximately 200,000 new housing units were
constructed with the proceeds of tax-exempt
mortgage revenue bonds issued in 1983 and 1984,
about one-quarter of all multifamily rental construction during that period.
Although a vast number of multifamily units
were built with tax-exempt financing, a large
portion of the construction might have been
financed conventionally if the tax-exempt instruments had not been available. N o direct evidence
is available on this important point; however,
studies of earlier federally sponsored housing
subsidy programs suggest that a sizable fraction
of all projects financed with tax-exempt bonds
would have started within a year or so even if
conventional financing had been required. GAO
analyses of metropolitan rental markets with
substantial tax-exempt construction suggested
that a similar number of apartments would have
been built in the absence of below-market financing; according to the GAO, demand-side
pressures and resultant rates of return in those
areas likely would have prompted large increases
in conventionally financed construction.
The Tax Reform Act of 1986 likely has strong
implications for residential construction. The
major real estate features of the Tax Reform Act
reversed the provisions in ERTA regarding multifamily construction; it raised the tax on capital
gains, and it restricted individual sheltering of
earned and "portfolio" income with losses arising from passive investments. The 1986 act further diminished depreciation writeoffs, which
had already been scaled back by legislation
passed in 1982 and 1984.
The reduction in investor tax benefits from the
1986 act, combined with the relatively low level
of rents in many local markets, reduces the rate
of return on investment in rental housing below
that considered adequate for new construction.
The tax reform provisions therefore imply some
reduction in the pace of multifamily construction. Such a decline would be expected, in time,
to boost rents sufficiently to offset the loss of tax
benefits. The controversy that surrounds the tax
status of the marginal rental housing investor
makes uncertain the rent increase necessary to
reallocate resources into rental housing, but most
studies suggest the increase is likely to be substantial.

Housing and Mortgage Markets: The Post-1982 Expansion

HOUSING

DEMOGRAPHICS

A recovery in the rate of household formations
has supported the post-1982 housing expansion.
The number of new households plunged to a
30-year low of 400,000 in the year ended in
March 1983; but formations rebounded to reach
an average annual rate of more than 1.5 million
during the ensuing three years, a pace close to
the annual readings of 1975-79. The rate of
household formations fell to 1 million during the
year ended in March 1987, with the drop concentrated among households whose head is under
the age of 25. The coming of age of the "baby
bust" generation suggests that net household
formations likely will remain below 1.5 million
units per year, on average, through the remainder of the decade. This factor should significantly
restrain housing demand because, historically, a
large majority of newly constructed housing units
have been built to accommodate, directly or
indirectly, additional households.
Total household formations reflect age-specific
living arrangements plus marriage and divorce
rates, all of which vary with economic conditions
and social change. The post-1983 rise in household formations undoubtedly was associated
with the improvement in employment opportunities as well as with the greater affordability of
homes.
A 9 percent decline between 1980 and 1987 in
the number of young adults (ages 14 to 24) served
to damp the pace of household growth. Furthermore, despite some recent increase, the current
proportion of young adults who are household
heads—13.8 percent in 1987—remains somewhat
below its 1980 value. The propensity of young
adults to cluster in households of unrelated individuals did not increase sufficiently to account
for this decline in their headship rate. Instead,
the decline stemmed from a significant rise in the
tendency of young adults to remain in the parental home. The percentage of individuals 18-24
years old living with their parents increased to
almost 54 percent in 1987 from about 48 percent
in 1980.
Analysts point to a number of economic and
social factors to explain this contraction in
young-adult households. According to the report
of consumer income by the Census Bureau, the




897

population aged 15 to 24 was the only age group
whose real median household income declined
between 1980 and 1986, from $16,900 to $15,300,
or 9.5 percent. Further, the increase in the inclination of young adults to remain at home may
result from changing social attitudes as well as an
easing of the "sibling squeeze"—the presence of
fewer younger siblings in the parental home,
which reduces the pressure to move away. Availability of space in the parental home perhaps
interacted with economic constraints in slowing
household formation by young adults.
In contrast, the growth of households has been
relatively robust among "baby boom" age
groups; between 1980 and 1987 the number of
new households increased 11 percent in the
25-34 age group and 34 percent in the 35-44 age
group. The headship rate among the baby boomers in this period remained stable or declined; the
growth in households, many of them nonfamily
households, derived entirely from the growth in
the population of these groups.
For the remainder of the decade, the number
of households in the 15-24 age group is expected
to decline further, while household formations
among those aged 25-54 should be maintained
through continued growth in their population.

REGIONAL
HOUSING

ECONOMIC GROWTH
CONSTRUCTION

AND

The early years of the post-1982 housing expansion reflected a strong cyclical recovery in the
South and West, coupled with a moderate trending up in the pace of construction in the other
regions. Since 1985, however, housing demand
has weakened in oil-patch states, while the housing markets in many metropolitan areas of the
Northeast have been booming. This shifting of
economic growth to higher-cost areas should
work to slow the aggregate pace of housing
construction.
The high level of production achieved in 1983
has generally been sustained in the West but not
in the oil-patch markets of the South (chart 4).
Although the South's share of total construction
activity continues to exceed that of other regions, it has declined from 50 percent in 1982-83
to about 39 percent in mid-1987. In contrast, the

898

Federal Reserve Bulletin • December 1987

4. Regional housing starts
Number of starts per 1,000 households

1980

1975

1985

1987

Northeast's share in that period has risen from 11
percent to 17 percent.
During the first half of the 1980s, many households migrated from the Northeast and North
Central regions to the South and West, as they
had since the 1970s, thereby giving a strong push
to housing demand in the Sunbelt. Those households were drawn by, and contributed to, the
expanding Sunbelt economy: growth in nonagricultural employment in major census divisions of
the South and West far exceeded that of their
counterparts in the Northeast and North Central
regions (table 1). Expanding areas of the Sunbelt
typically lacked the housing demanded by the
growing population but had abundant and relatively inexpensive land, whose development was
limited by few regulatory constraints.
Economic growth has slowed in some Sunbelt
markets. The surge in multifamily construction
earlier in the decade, together with weak demand
for multifamily units, has produced record-high
rates of rental vacancy in the South, rates far
higher than those in other regions. Weakness in
the oil-patch economy dragged down nationwide
1. Change in nonagricultural employment by
selected census regions, selected years, 1975-85

new-home sales during mid-1986. One-third of
the national rise in existing home sales in the
third quarter of 1986 derived from the wave of
distress sales and emigration that swept over
Texas, Oklahoma, Louisiana, and Arkansas.
In contrast, housing demand and construction
have remained strong in the Northeast, where
economic restructuring and diversification have
substantially improved employment and income.
By mid-decade, New England had become the
most affluent of the Census divisions, with per
capita personal income in 1986 at 117 percent of
the national average. The vacancy rate for rental
housing in the Northeast has remained low, at 4
percent (chart 5); and prices of existing homes
have risen by two to three times the national
average during the recent period. Housing starts
in the Northeast rose 20 percent in 1984 and
again in 1985, while starts in the rest of the
country remained virtually unchanged.
Housing affordability as measured by the mortgage-servicing and comprehensive indexes exhibits regional variation consistent with underlying regional economic trends. Affordability
according to the mortgage-servicing measure
rose in all areas during the mid-1980s and fell
somewhat in all areas during the 1987 runup in
mortgage interest rates. Housing prices in the
Northeast have escalated sharply in recent years
under the twin pressures of rising demand and
constraints on supply. Local land-use ordinances
restrict development in many metropolitan areas
of the Northeast and West; research suggests
such policies may add appreciably to the price of
a standard dwelling. The recently heightened
inflation of home prices in the Northeast improves affordability under the comprehensive
index because of higher expected capital gains;
but it worsens affordability under the mortgage-

Percent change from previous period

5. Rental vacancy rates
Region
East North
Central
Middle Atlantic ..
N e w England
Pacific
South Atlantic . . .
West South
Central
United States

1975

1980

1985

4.0
-1.1
3.0
14.2
15.3

14.5
6.4
21.2
43.3
39.9

15.1
12.7
34.2
57.4
59.8

21.5

56.3

72.2

9.5

28.5

38.4

SOURCE. Bureau of Labor Statistics.




I

Percent

Housing and Mortgage Markets: The Post-1982 Expansion

burden index because of the significant rise in
mortgage-servicing costs. Typical Northeast
households that purchased homes in late 1987
allocated more than one-third of monthly income
to mortgage expenses on a standard-quality new
home; housing affordability according to the
mortgage-burden index fell considerably below
that of other regions.

899

6. Comparison of adjustable-rate and
fixed-rate mortgages
Percent
Average initial interest rate on new commitments

Percentage points

DEVELOPMENTS

IN MORTGAGE

MARKETS

The rate of growth of mortgage debt on residential properties rose strongly following the
1980-82 slump, moving from 4.8 percent in 1982
to 14 percent in 1986, a rate among the most rapid
of the past three decades.
While the post-recession expansion in housing
activity stimulated the demand for mortgage
credit, other factors helped to enhance the availability of mortgage funds to homebuyers. The
secondary mortgage market continued to develop, introducing a variety of innovations in
mortgage securitization. Also, the proliferation
of adjustable-rate mortgages allowed homebuyers greater access to credit. Mortgages with
periodic rate adjustments were not widely available before the 1980s; in the wake of the runup in
mortgage interest rates during the early eighties,
ARMs became an important choice on mortgage
menus nationwide.
ARMs
Adjustable-rate home mortgages grew from only
a small share of originations before the cyclical
downturn to almost two-thirds of all conventional purchase loans closed in mid-1984 (chart
6). The share trended down during subsequent
years to reach about one-fifth of the total in early
1987, but then expanded in subsequent months,
supporting housing demand despite the increased
costs of fixed-rate mortgage credit.
Both the level of fixed-rate mortgage interest
rates and the interest rate differential between
fixed- and adjustable-rate credit appear to be
important factors affecting the market share of
ARMs. The spread between the rate on fixed-rate
financing and the initial rate offered with ARMs
has varied widely since late 1985 (chart 6). The



Interest rate spread between fixed-rate and
adjustable-rate mortgages

Percent
Share of A R M s in conventional mortgages closed

1984

1985

1986

1987

sharp runup in the costs of fixed-rate mortgage
credit in 1987 doubled the spread to a record 300
basis points and resulted in a substantial increase
in ARM market share.
Adjustable-rate mortgages have proven attractive to both borrowers and lenders. The lower
initial interest rate on ARMs (chart 6) enables
more buyers to qualify for purchase of a particular home, hence increasing the effective demand
for housing. Because most borrowers are qualified on the basis of initial monthly payments,
ARMs likely support housing demand during
periods of high or rising rates on fixed-rate mortgages. Homebuyers expecting some decline in
rates also are attracted to ARMs, which pass
declines to borrowers without costly refinancing.
Further, ARMs likely are attractive to homebuyers with short expected durations of residence, given the low initial ARM interest rate
relative to fixed-rate loans. Lenders, especially
thrift institutions, favor ARMs as a means of
increasing their holdings of rate-sensitive instruments.
ARM features have become increasingly standardized. The dominant form to have emerged

900

Federal Reserve Bulletin • December 1987

7. Home mortgage debt outstanding
Trillions o f dollars

1. G N M A , F H L M C , and F N M A pass-throughs only.

sets indexation to the rate on one-year Treasury
bills, limits interest rate adjustments to 2 percentage points annually and 5 to 6 percentage points
over the life of the mortgage, and precludes
negative amortization (that is, an increase in the
outstanding principal on the loan). Standardization of both ARM design and underwriting criteria has improved the liquidity of ARMs.
Expansion

of the Secondary

Market

Developments in the secondary mortgage market
have broadened the supply of mortgage credit to
homebuyers while linking the mortgage market
more closely to capital markets. Since 1982, 60
percent of the growth of home mortgage debt has
been in the form of pass-through securities,
which represent undivided ownership interests in
a pool of mortgages (table 2). The trend toward
securitization has become especially pronounced
in recent years: since the beginning of 1986,
four-fifths of the growth in home mortgage debt
outstanding has been in the form of pass-through
securities (chart 7).
2. Issuance of mortgage securities, 1982-87
Billions of dollars

Type

1983

1984

1985

1986

19871

54.2
2.1

83.5
2.8

60.1
2.12

108.4
5.32

258.9

199.6

n.a.

n.a.

.6

5.7

13.4

20.5

58.8

96.9

Pass-through
securities
Federally related
Private

1982

201.9

203.7

246.8

442.3

Derivative securities3.
Total home
mortgage originations

MEMO:

1. Through Sept.
2. Federal Reserve Board staff estimate.
3. Public offerings only.




61.5

n.a.

Investors value these securities in part because
the return of principal and interest on the collateral is usually guaranteed by a federal agency,
the Government National Mortgage Association,
or a federally chartered private entity, either the
Federal National Mortgage Association or the
Federal Home Loan Mortgage Corporation. Potential investors who otherwise would be forced
to evaluate separately the quality of individual
mortgage loans can buy standardized securities
with little if any risk of default and with a
diversified risk of prepayment. As a result, the
expanded issuance of pass-through securities has
attracted a variety of nontraditional investors to
the mortgage market and facilitated the provision
of credit to the housing sector.
In addition to broadening the investor base,
the maturation of the secondary market has
reduced the risk to mortgage originators by providing a reliable market for their product. At a
certain cost, lenders can negotiate forward commitments to sell their loans, thereby shifting to
secondary market dealers the risk that an upturn
in interest rates will reduce the value of mortgages during the interval between lock-in of the
borrower's rate and loan delivery.
During the 1970s, the leading traditional portfolio lenders—thrift institutions—made little use
of the secondary market; they largely originated
and retained fixed-rate loans, which were funded
out of short-term retail deposits. Early in this
decade, however, higher interest rates raised the
cost of loanable funds above the return on holdings of long-term, fixed-rate mortgage loans. In
the wake of those changing financial conditions,
thrift institutions suffered large losses, prompting
them to increase the rate sensitivity of their
portfolios. After legislative and regulatory
changes, thrift institutions increasingly marketed
adjustable-rate mortgages. Further, they turned
to the secondary market, selling off seasoned
fixed-rate loans so as to shorten the maturities of
their assets. Thrift institutions also securitized
their holdings of fixed-rate mortgages through
swap transactions with FHLMC and FNMA.
Mortgage-backed securities provide thrift institutions with relatively liquid holdings that may be
used as collateral for borrowing. Borrowers increasingly sought fixed-rate loans as rates
trended down during 1985 and 1986; in contrast

Housing and Mortgage Markets: The Post-1982 Expansion

8. Mortgage activity at
FSLIC-insured thrift institutions1

901

in Treasury yields was reflected in mortgage
rates within a week.
Billions of dollars

Derivative

1970-82

1983

1984

1985

1986

1987

1. The data for 1970-82 are annual averages; for 1987, Jan.-Aug. at
seasonally adjusted annual rates.

to earlier years, and largely because of the prevalence of fixed-rate lending, thrift institutions
during this period sold most of their mortgage
originations in the secondary market (chart 8).
The increase in the tendency of thrift institutions to emphasize mortgage banking functions—
originating loans and selling them into the secondary market—reduced the risk these institutions faced earlier when holding fixed-rate mortgages; but this change in behavior also worked to
diminish the insulation of primary market rates
from fluctuations in the overall capital market.
Indeed, statistical tests indicate that in recent
years conventional fixed-rate mortgage rates
have responded more fully and more quickly to
movements in the yield on Treasury securities of
comparable maturity. During the mid- to late
1970s, only 20 percent of a change in 10-year
Treasury yields was mirrored in mortgage rate
movements within a week (chart 9). Short-term
responsiveness increased nearly threefold by
1986-87, when nearly 80 percent of any change
9. Average change in mortgage rates
per 10-basis-point change in yield
on 10-year Treasury securities1
Basis points

1975-79

1980-82

1983-85

1986-87

1. Change in mortgage rate measured one week after change in
Treasury yield. Mortgage and Treasury rates are one-week averages.
Mortgage rate is the commitment rate on conventional fixed-rate home
loans.




Mortgage

Securities

Another development in the secondary mortgage
market has been the introduction of a new breed
of instruments, collectively known as derivative
mortgage securities. These securities restructure
the cash flow from the underlying pool of mortgages and are typically backed by pass-through
securities guaranteed by a federally related institution. Derivative mortgage securities are designed to exploit the varying risk-return requirements of market participants and in certain cases
reduce the exposure of some investors to mortgage prepayment. The issuance of derivative
securities has grown rapidly in recent years—the
volume for the first nine months of 1987 was $62
billion—but remains substantially less than that
of traditional mortgage pass-through securities.
Opinion remains divided on the effects of derivative securities on primary market rates. Their
issuance may improve the marketability of mortgages in the secondary market, thereby broadening the base of investors and possibly exerting
some downward pressure on mortgage rates; but
otherwise they lack substantive benefits to mortgage borrowers. Alternatively, finely tailored derivative securities may provide arbitrage profits
to a small number of issuers.
Recent innovations in mortgage securities include the multiclass pay-through bond, known as
the collateralized mortgage obligation or CMO.
The multiclass nature of the CMO means that
schedules for the repayment of principal vary for
each class of bond, so that anticipated maturities
differ. CMOs may attract investors who limit
their purchases to certain maturities and who
thus otherwise might ignore mortgage investments. Particular CMO classes attempt to minimize the variability of cash flows associated with
prepayment options. This lessened investment
risk could translate into lower rates in the primary market, but the statistical analyses undertaken to date typically fail to show such an effect.
Other innovations in mortgage-backed securities include so-called stripped securities, or
"strips," and senior/subordinated securities.
Strips allow the issuer to allocate principal and

902

Federal Reserve Bulletin • December 1987

interest payments from the underlying mortgage
pool separately or in any combination. Investors
can then purchase that part of the mortgage cash
flow they most desire. Strips vary considerably
in their composition and performance. This instrument, introduced in 1986, may further
broaden the attractiveness of derivative mortgage securities to a range of potential investors;
however, the relatively small magnitude of issuance to date suggests this innovation has yet to
affect rates in the primary market. Senior/subordinated securities are structured to represent
senior and subordinated interests in the underlying mortgage assets; risk and hence yield on the
subordinated interest will exceed that of the
senior interest, thereby promoting development
of a high-yield component in the mortgage securities market.
Derivative securities should become more
popular because of the 1986 Tax Reform Act. In
an effort to establish greater uniformity and certainty in the taxation and trading of mortgagebacked securities, the tax act authorized a new
vehicle for issuing those securities, known as
the real estate mortgage investment conduit
(REMIC). A REMIC is a tax-advantaged entity
that holds mortgage assets and issues multiclass mortgage-backed securities. The sponsor of
a REMIC has almost unlimited flexibility in
structuring its legal and financial form. This
flexibility will likely result in wider range and
larger volume of mortgage securities and may
further broaden the investor base of the housing
finance system.

OUTLOOK

Housing activity has diminished since early this
year, in part because of the runup in mortgage
interest rates. Rates on conventional fixed-rate
mortgage loans, at a low of about 9 percent early
in the year, rose to well above 11 percent by
September. Total housing starts declined sharply
during this period; for 1987, the annual pace of
housing construction will fall substantially below
the robust average of 1.75 million units during the
1983-86 period.
Uncertainty about several variables cloud the
outlook for housing affordability. The reduction




in marginal income tax rates resulting from the
1986 tax law lowers the value of the deduction for
homeowner mortgage interest and hence reduces
housing affordability. However, the reduction in
marginal tax rates also tends to boost household
disposable income, some of which may be spent
on housing. Further, some increase in the demand for real estate stemming from elimination
of other tax shelters suggests improved capital
gains in housing, which should favorably affect
the comprehensive measure of homeownership
costs. The net result of these direct and indirect
effects remains to be seen.
The continuing decline in formations of youngadult households suggests weakness in the demand for rental apartments. Middle-aged and
more-affluent baby boomers should swell the
number of buyers who are trading up to better
new and existing single-family homes; nonfamily
households in this age group will also likely have
earnings appropriate for the purchase of such
units. Rates of homeownership among babyboom households should rise and yield a moderate improvement in the overall homeownership
index.
In the market for multifamily housing, construction has weakened considerably since the
spring of 1986, when the anticipated tax law
became binding for newly started projects. By
mid-1987, multifamily starts had fallen to about
two-thirds of their average post-recession pace.
Tax reform was not the only factor impinging on
construction in this market, however; recordhigh rates of vacancy in selected local markets
also lowered the improvement rate of return on
investment in multifamily units. Except for some
improvement in those few metropolitan areas
with tight housing markets, the pace of starts for
multifamily rental units may remain low for some
time to come.
Shifts in the location of construction activity to
less supply-elastic and more costly markets
should also affect the level of aggregate housing
construction. Other things equal, those influences suggest that housing will remain relatively
expensive on a mortgage-burden basis in the
Northeast and West; in turn, the national pace of
construction will likely be damped.
Turning to mortgage markets, substantial
amounts of mortgage capital have been raised

Housing and Mortgage Markets: The Post-1982 Expansion

from individuals and institutions that do not
originate mortgage loans but instead are attracted
by the yield, liquidity, and diversification of
mortgage securities. Recent innovations in derivative securities indicate that the variety of such
instruments will increase to meet the demands of
different investors; those developments suggest
increased efficiency and competitiveness in secondary market operations. This further integration of mortgage and capital markets points to the




903

continued availability of funds for home mortgages but allows fluctuations in capital costs to
be passed along more quickly to the interestsensitive housing sector.
Finally, adjustable-rate mortgages, with their
lower initial rates, should continue to be attractive to both borrowers and lenders and to provide
support for housing activity during periods of
high or increasing interest rates.

904

Industrial Production
Released for publication October 16

in September was 5.4 percent higher than it was
a year earlier. Output in the third quarter was
about 2 percent higher than it was in the second
quarter of 1987.
In market groups among consumer goods, the
production of automotive goods dropped 2Vi
percent. All of the decline was in truck production as autos were assembled at an annual rate of
6.1 million units—close to the low rate of 6.0

Industrial production increased 0.2 percent in
September following gains of 0.3 and 1.1 percent
in August and July respectively. In September,
there were continued gains in equipment production, but output of consumer goods fell slightly,
and the production of materials changed little. At
131.2 percent of the 1977 average, the total index

Ratio scale, 1977= 100
Products

140

TOTAL INDEX

120
Materials

100
80
MANUFACTURING

140

Durable

MATERIALS

Nondurable
-

Durable

Nondurable

120

*•

100

INTERMEDIATE PRODUCTS

.

Business supplies

X

Construction supplies

240
FINAL P R O D U C T S
200

Defense and space

160
140
120

100
80
1981




1983

1985

1987

1981

1983

1985

1987

905

1977 = 100

Percentage change from preceding month

1987

1987

Group

Sept.

Aug.

May

June

July

Aug.

Sept.

Percentage
change,
Sept. 1986
to Sept.
1987

Major market groups
Total industrial production

131.0

131.2

.6

.7

1.1

.3

.2

5.4

Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment
Defense and space
Intermediate products
Construction supplies
Materials

139.9
138.4
129.3
121.5
132.2
145.8
190.2
144.9
132.4
118.9

140.2
138.8
128.9
120.1
132.2
146.6
191.5
145.2
132.6
119.0

.8
.7
1.5
2.9
1.0
-.3
.0
1.1
.7
.3

.7
.5
-.1
-2.3
.7
1.8
-.3
1.1
1.8
.8

1.3
1.4
1.5
2.8
1.1
1.3
.0
.9
.9
.9

.2
.2
.1
.7
-.1
-.1
.8
.2
-.3
.5

.2
.2
-.3
-1.2
.0
.5
.7
.2
.2
.1

5.3
5.0
4.3
2.3
5.0
5.0
3.7
6.4
4.2
5.5

.4
.6
.1
.6
-1.1

.1
.1
.1
.8
-.1

5.4
4.6
6.5
5.1
3.2

Major industry groups
.5
.3
.8
.6
3.3

136.1
134.3
138.7
100.7
109.6

136.0
134.2
138.6
99.9
109.7

Manufacturing
Durable
Nondurable
Mining
Utilities

.6
.4
.9
.0
-.2

1.1
1.1
1.1
.1
1.4

NOTE. Indexes are seasonally adjusted.

million in August. Output of goods for the home
eased in September, following strong gains in
July and August, bringing the cumulative advance during the past year to almost 7 percent.
Total business equipment posted a moderate rise
in September. For the third quarter as a whole,
production was up 2.5 percent, with particular
strength in manufacturing equipment, especially
metal working and general industrial equipment.
Output of supplies for construction and business
was maintained at high levels during September.
Materials production edged up in September.
There was a 0.6 percent gain in nondurables, but
this gain was largely offset by a slight decrease in
durables and no change in energy materials.
In industry groups, total manufacturing output
increased fractionally with another sizable inTotal industrial production—Revisions
Estimates as shown last month and current estimates

Month

Index (1977=100)

Percentage change
from previous
months

Previous
June
July
August
September

Current

Previous

Current

129.2
130.3
130.7

129.1
130.6
131.0
131.2

.7
.8
.3

.7
1.1
.3
.2




crease in primary metals, particularly steel.
However, overall motor vehicle production was
reduced and in many other industries production
was little changed. Mining output rose 0.8 percent but utility production was about unchanged.

Revision

of the

Indexes

As part of the Federal Reserve's ongoing review
of its statistical series, the indexes of industrial
production have been revised, beginning with
January 1985.
Revision of the Indexes for 1985 and 1986. The
revision of the indexes for 1985 and 1986 affects
the series primarily through the incorporation of
information now available at the time the indexes
were originally estimated. In the present revision, unlike the 1985 general revision, no major
modifications were introduced; in particular, the
reference year, the weights, and the groupings of
the index have remained unchanged. The present
revision, in addition to the incorporation of data
previously not available, reflects the updating of
the seasonal adjustment factors for the entire
index (including its groupings and the basic
series); these are now calculated with the use of

906

Federal Reserve Bulletin • December 1987

data through December 1986. The production
adjustment factors applied to the indexes were
updated as well.
The revised data indicate that the growth in the
total index of industrial production is essentially
the same as previously estimated: a rise of 1.9
percent in 1985 (instead of 2.0 percent), and an
increase of 1.1 percent during 1986 (instead of 1.0
percent). The level of the total index in December 1986 was revised upward slightly. However,
indexes for several industry and market groups
showed significant, but offsetting, revisions.
Over the 1985 and 1986 periods, the most notable
upward revisions in the market categories occurred in equipment and construction supplies.
The largest downward revisions were in home
goods and textile materials. Among the major




industry groups, less growth in nondurable manufacturing was countered by an increase in durables.

Revision of 1987 Indexes. The revisions of the
data between January and August 1987 reflect in
part the revisions undertaken for 1985 and 1986
as well as the receipt of new information for
1987. Like the revisions for 1985 and 1986, the
revisions for the first eight months of 1987 indicate, on balance, about the same rate of growth
in industrial activity as estimated previously. The
overall level of industrial output for August
1987—at 131.0 percent of the 1977 average—was
slightly higher than the figure published earlier
(130.7).

907

Statements to Congress
Statement by Alan Greenspan, Chairman, Board
of Governors of the Federal Reserve System,
before the Subcommittee on Telecommunications and Finance of the Committee on Energy
and Commerce, U.S. House of Representatives,
October 5, 1987.
I welcome this opportunity to appear before the
Subcommittee on Telecommunications and Finance to explore the structure of the financial
services industry with an emphasis on the regulatory framework that applies to banking and
securities activities. I want to express my appreciation to you for calling this hearing and for
focusing the attention of the Congress and this
committee on the important issue of the basic
rules that should apply to the financial services
industries.
Mr. Chairman, in a speech that you made
recently in San Francisco, you expressed increasing unease that the financial system has
evolved beyond the terms of our laws and is
functioning without effective legislative guidelines. You said, the "Congress must be at the
center, not the sidelines, of the development of the
policy for structuring our financial industry."
I would like to express my strong agreement
with that view. It is essential that the Congress
come to grips with the difficult decisions that
must be made to update our laws to the new
circumstances of technology and competition.
We all feel considerable frustration that the Congress has not acted, and I very much welcome
the pledge made by both the House of Representatives and the Senate in the Competitive Equality Banking Act adopted earlier this year not to
extend the moratorium on banking expansion, to
review our banking and financial laws, and to
make decisions on the need for financial restructuring legislation before the moratorium expires.
Before turning to the questions of financial
structure, I believe it is important to reflect on
our starting point. We have the strongest, most




competitive, and innovative capital market in the
world. Our job is to preserve its strengths and
make improvements to assure its role in a substantially more competitive world marketplace.
Banking is a vital part of this capital market
structure, and despite a difficult economic environment, this industry has shown extraordinary
resilience and strength. It has carried a special
burden in the transition to a less inflationary
economic climate as some of the major sectors it
has financed—agriculture, developing countries,
energy, and real estate—have been seriously and
adversely affected by the transition, experiencing
in some cases not only a relative slowdown in the
rate of inflation, but actual sharp declines in
prices. The banking industry is coming through
this experience wiser and stronger.
While profitability levels for many banks remain depressed, regional banks have been
strongly profitable and have strengthened themselves in the past three years through regional
interstate banking arrangements. In the future, I
anticipate the development of a broad interstate
banking system as regional arrangements evolve
into a national framework. Already 10 states
have adopted full interstate banking, 13 states
have provided for it after a transition period, and
8 additional states permit interstate acquisition of
troubled banks. This constructive trend, especially when fully developed, will result in better
service to customers and a strengthened banking
system.
Securities markets also are adjusting to substantial change. The global marketplace, involving 24-hour trading in a variety of securities, is
now a reality. There has been an explosion in
complex new products and services posing new
risks and putting a new emphasis on capital
adequacy. And here at home attention has focused on a deterioration in ethical standards and
the possible need to take corrective action.
All of these concerns have led to a new and
searching focus on how our financial structure

908

Federal Reserve Bulletin • December 1987

can be improved. Your San Francisco speech
pointed to many of these issues, including international competition, new securitized products,
deregulation of interest rates, and expansion of
nonbanking organizations into fields traditionally
thought of as banking services and vice versa. All
of these developments have amounted to a very
much more competitive environment for banking, while at the same time banking has been
frozen within a regulatory structure fashioned
some 50 years ago. Your statement and those of
many others reflect what, I believe, is a widespread feeling that our existing structure is too
rigid, limiting efficient service to the users of
financial services, hampering competition in a
way that produces unfair and anomalous results.
Senator Proxmire's consideration of a proposal
to repeal the Glass-Steagall Act is another example of this serious reevaluation of our financial
laws.
Among all these changes there is one development that I believe is of particular importance
and is now a permanent feature of the financial
environment. This development is the erosion of
the role of banks as intermediaries in the creditgranting process as a result of major developments in data processing and telecommunications technology. These changes have taken the
form of improvements in productivity, permitting
the efficient processing of large volumes of transactions, the linking of geographically separate
markets, and a substantial reduction of costs.
These changes, in turn, have had a marked
impact on the traditional role of banks—intermediation whose function it is to substitute bank
credit for the credit of the ultimate borrower.
This traditional intermediation, the result of careful credit analysis and diversification of risk, has
provided lenders more secure investments than
would otherwise have been possible through
direct loans from a lender to an ultimate borrower. In this process, the value added by the
bank, and a core element of its comparative
advantage, is its superior information about the
creditworthiness of the borrower.
Now, extensive on-line data bases, powerful
computation capacity, and telecommunication
facilities provide credit and market information
almost instantaneously, allowing the lender to
make its own analysis of creditworthiness, and to




develop and execute complex trading strategies
to hedge against risk. The result is that the basic
products provided by banks—credit evaluation
and diversification of risk—are less competitive
than they were 10 years earlier. These fundamental changes will have a permanent effect on the
competitiveness of depository institutions and
will expand the competitive advantage of the
market for securitized assets.
The impact of these changes in relative competitiveness because of technological innovation
has been accelerated by another simultaneous
development. The full force of the technological
changes has come at a time when market forces
have adversely affected many of the sectors to
which a large number of banking institutions
have made significant financial commitments.
Thus, the growing cost advantage of avoiding the
depository institution intermediary, already significant in terms of a reduction in both administrative and regulatory costs, widened as a result
of the market downgrading of many banks.
As one important example of the consequences of these changes, we have seen a remarkable expansion of the commercial paper
market as a substitute for direct short-term lending by banks to the most creditworthy borrowers. Since 1980, this market has more than doubled—rising from $31 billion at the end of that
year to $78 billion at midyear 1987.
The same kind of securitization of many other
types of lending has proceeded apace, involving
everything from home mortgages to automobile
loans. Expansion has been most dramatic in the
mortgage market where mortgage pass-through
securities exceeded $600 billion at midyear 1987,
or about one-third of all residential mortgage
debt. The concept of the pass-through security
has more recently been extended to other claims
on the household sector, notably automobile
loans and credit card receivables, which stood at
about $15 billion at midyear. The development of
this market, which substitutes securities for bank
loans, is now reaching down below the top
industrial and commercial firms to a broader
segment of the economy. As you know, banks
have not been able to participate fully in servicing this extension of their own natural markets
because of regulatory restrictions.
These same technological forces are now prev-

Statements

alent throughout the world. To remain viable in
this highly competitive and innovative environment, financial institutions are seeking to have
the broadest range of products available to meet
the changing needs of their customers. Thus, we
have seen investment firms provide traditional
banking services, such as short-term bridge financing, and banking firms, including American
and Japanese banks that are under regulatory
constraints at home, participate broadly in securities markets overseas. As an aside, I would
note that the successful and substantial participation of U.S. banking firms in these overseas
markets for debt securities certainly raises important questions about the need for the restrictions on lenders doing the same thing at home. It
is considerations of the kind I have outlined
above that have led the British and Canadian
governments to adopt or propose substantial
changes in their previously segmented financial
systems to allow banking and other financial
service firms to provide integrated services in the
single world financial market.
As I have stressed, we do need to make some
changes in our segmented financial structure to
make it more competitively effective, both domestically and internationally, and I will turn to
this in a moment. One thing I do not think we
need to do is follow a deliberate policy of allowing our financial institutions to become larger for
the specific purpose of meeting international
competition.
One argument that is put forward for this
proposition is the fact that of the top 25 banks in
the world in 1986, 16 were Japanese and only 2
were based here, in contrast with 1981 when 4
were American including the top 2, while 10 were
Japanese. At the same time, we must ask ourselves whether these changes in the relative
ranking of Japanese firms can be explained
largely by Japan's rather highly concentrated
banking system, its appreciated currency, its
trade surpluses, and very high domestic savings.
It is no surprise that in these circumstances
Japanese institutions would be growing rapidly,
particularly in terms of dollars.
But there is no evidence that extraordinary
size is necessary for successful international
competition. Many banks in countries other than
our own compete successfully in the interna-




to Congress

909

tional marketplace with assets that are significantly smaller than those of their American counterparts. Clearly, many American financial
institutions have reached the size that is necessary for effective participation in international
markets.
On the other hand, I would rate capital adequacy as an important ingredient in the international competitive environment that does require
a great deal more attention. The Federal Reserve
has begun an effort, in cooperation with banking
supervisors both at home and overseas, to
achieve agreement on a uniform system for measuring capital adequacy focused on a risk-based
standard. Considerable progress is being made
toward an agreement, which I hope will be
completed by the end of this year. An agreement
of this kind will both strengthen the banking
system worldwide and assure greater equity in
the competitive environment.
I would like to turn now to consideration of
how we should go about restructuring the financial system to deal with the problems that I think
we all agree are hampering its performance. You
have suggested that the fundamental test for
determining the kind and scope of the required
changes is what we will need to do to serve better
our nation's economic interest. You point out
that in the process of considering removal of
some or all of the barriers separating banking and
securities firms we have to ask ourselves several
important questions, including the following: (1)
How can we insulate insured deposits from securities activities? (2) How can we ensure the
continued safety and soundness of, and public
confidence in, banking and securities markets?
and (3) How can we prevent conflicts of interest
and concentration of resources? To these important considerations I would add the corollary that
our basic objective must be to promote a system
that provides efficient services to customers large
and small in an environment that promotes competition. As part of this analysis, I would add two
other points that are of particular importance to
the Federal Reserve but are also of vital concern
to the economy as a whole: (1) we must have a
system in which monetary policy can function
efficiently; and (2) we must have a system that
maintains the integrity of the nation's payment
system.

910

Federal Reserve Bulletin • December 1987

There is, I believe, wide agreement on these
goals. We accept as basic to our thinking that any
combination of banking and other firms should
take place within an organizational structure that
separates the bank in such a manner as to assure
that only the bank has the benefit of the support
of the federal safety net and that includes deposit
insurance and access to Federal Reserve lending.
There are various ways in which this separation
could be accomplished. The three main proposals that have been put before the Congress involve the following ideas:
1. Require that all nonbanking activities of a
banking enterprise take place in the subsidiary of
an overall holding company. This holding company could be subject to the same regulatory
framework that we have now for holding companies. This proposal, put forward by the President
of the Federal Reserve Bank of New York,
suggests that the powers of bank holding companies should not extend beyond securities and
insurance activities and that traditional holding
company regulation is appropriate in this context.
2. In contrast, others suggest that functional
regulation should be applied to each of the different kinds of activities owned by a holding
company parent, but that there should be little, if
any, regulatory authority over the parent enterprise.
3. Finally, suggestions have been made, including those recently put forward in a Federal
Deposit Insurance Corporation staff paper, that it
would be appropriate to expand nonbanking activities of banking institutions within the subsidary of banks themselves without any regulation
at all at the holding company level.
While we have yet to come to definitive conclusions about these implementation options, our

experience thus far suggests that the most effective insulation of a bank from affiliated financial
or commercial activities is achieved through a
holding company structure, though we welcome
debate on other alternatives.
We also agree that attention must be given to
the whole range of relationships between a bank
and its affiliated entities to assure that confidence
in banks is not compromised and that conflicts of
interest are avoided. In addition, we are addressing such issues as the following: (1) the need for
limitations on loans by a bank to affiliated enterprises or to customers of affiliated enterprises; (2)
the need for adequate separation of directors,
officers, and premises; (3) restrictions on the flow
of confidential information; (4) the scope of permissible joint marketing; (5) rules on intercorporate provision of services; and (6) the need for
public disclosure of affiliate relationships.
As a result of this review, we at the Board
hope to be in a position to advise the Congress on
how best to implement the changes that we see
are so urgently needed to assure that the financial
system continues to serve our public policy
goals. We expect to have specific recommendations on how best to achieve bank-affiliate insulation, on the maintenance of safety and soundness, on prevention of conflicts of interest, and
on avoidance of conferring competitive benefits
that are unavailable to all competitors that are
similarly situated. We hope that these recommendations will be valuable to the Congress as it
proceeds with its consideration of the restructuring of our financial system and that our recommendations will enable the American financial
system to remain competitive, serving the needs
of customers here and abroad without compromising the strength or stability of our financial
markets.
•

Statement by Martha R. Seger, Member, Board
of Governors of the Federal Reserve
System,
before the Subcommittee on Consumer Affairs
and Coinage of the Committee on Banking,
Finance and Urban Affairs, U.S. House of Representatives, October 6, 1987.

I appreciate the opportunity to appear before this
subcommittee to discuss home equity lines of
credit and H.R. 3011. The proposed bill would
amend the Truth in Lending Act to require
creditors to provide consumers with more information about home equity programs in advertise-




Statements

ments and in initial account disclosure statements.
The information that we have regarding home
equity lines of credit shows that there has been a
substantial growth in this type of credit since
1984, with outstanding balances totaling approximately $40 billion at the end of 1986. We believe
that the total may now be as high as $65 billion
and could reach $75 billion to $80 billion by
year-end.
The rapid expansion is probably attributable to
several factors. For example, the plans have
provided consumers convenient access to credit
at interest rates that are relatively low compared
with other means of financing consumer spending. Tax laws phasing out the deductibility of
interest for nonmortgage consumer debt have
made home equity loans more desirable to taxconscious borrowers. In addition, competition
among financial institutions to offer diverse financial services to their customers has resulted
in vigorous marketing of home equity lines, often
at low introductory interest rates and discounted
fees.
Recently, the Board and other bank regulatory
agencies changed the reporting requirements for
credit secured by real estate to provide more
complete and accurate information on household
borrowing through home equity lines of credit.
This change should provide more accurate information for an important segment of the market,
and enable us to better gauge the growth of this
type of credit and the effect it is having on other
consumer borrowing. In addition, the Board has
conducted consumer surveys this year to gather
information that will allow us to better understand consumer usage of home equity lines of
credit.
During the past year, the Board has received
inquiries from financial institutions, trade associations, consumer groups, and the Congress concerning home equity lines of credit. Much of the
debate has focused on the current disclosure
requirements for these loans, and whether these
requirements are adequate. The sponsors of
H.R. 3011 have sought to address some of these
concerns by introducing legislation to require
additional disclosures for home equity loans. At
the same time, the Board has been reviewing its
current regulatory requirements, with the goal of




to Congress

911

ensuring that consumers receive sufficient information before contracting for this type of credit.

LEGISLATIVE

PROPOSAL

H.R. 3011 would amend the Truth in Lending
Act to establish additional disclosure and advertising requirements for open-end credit plans
secured by the consumer's dwelling. Currently,
the Truth in Lending Act and Regulation Z treat
home equity lines of credit like other types of
open-end credit plans. As a result, creditors are
required to disclose how the finance charge will
be determined under the plan, what other
charges will be imposed, the security interest
being taken, and the consumer's billing rights.
The proposed bill would require creditors to
give more extensive and detailed disclosures.
For example, it would require more disclosures
concerning the annual percentage rate, including,
if applicable, a statement that no limit on annual
rate increases exists. The bill would also add an
example, based on a $10,000 amount outstanding, showing the payment terms under the plan
and how changes in the annual percentage rate
could affect payments under the plan. In addition, the proposed bill would call for disclosure
of the creditor's ability to unilaterally change the
terms and conditions of the plan, a statement that
the consumer risks losing his or her home in the
event of any default, and a disclosure that interest-only payments increase the cost of the loan
since they do not reduce the principal owed.
Creditors would also be required to give consumers a pamphlet that is to be prepared by the
Board. These additional disclosures would generally have to be given at the time of application,
which is earlier than current requirements, and
would have to be segregated from other information, which is once again a departure from current truth-in-lending requirements for open-end
credit.
The proposed legislation would also add a new
advertising section to the Truth in Lending Act
for home equity lines. Currently, a creditor is
required to make certain cost disclosures in
advertisements only when "any specific terms of
the plan" are included in the advertisement.
Regulation Z limits "specific terms" to items that

912

Federal Reserve Bulletin • December 1987

are required to be disclosed in the initial disclosures. The bill would add a reference to a periodic payment amount as a term that requires the
advertisement to include additional disclosures.
The bill also would require, under certain circumstances, a disclosure regarding the tax deductibility of interest paid on home equity loans
as "free money" or a "loan at prime."

POSSIBLE REGULATORY

ACTION

Since home equity programs are more complex
than other types of open-end credit plans and
pose a greater risk to consumers if they fail to
understand the terms and conditions of the plan,
the Board, like the Congress, is concerned about
whether the existing disclosure requirements under the Truth in Lending Act and Regulation Z
ensure that consumers receive adequate information about these types of loans when they contract for a particular plan. In our review of H.R.
3011, we find that the Congress has identified
many of the issues that we ourselves have targeted as major areas of concern that possibly
could be addressed through regulatory action.
During the past year, Board staff has been
considering the issue of home equity lending
within the context of truth-in-lending disclosure
requirements. In addition, the Board's Consumer
Advisory Council formed a subcommittee at the
beginning of this year to look into the issue and
has discussed it at its past two meetings. The
staff's analysis indicates that the current regulatory requirements for open-end credit may not
reflect adequately the complexities that are present in most home equity programs. Specifically,
the staff has focused on the content, timing, and
format of the disclosures required under Regulation Z as possible candidates for regulatory
change. At this time, Board staff is preparing a
proposal that would amend Regulation Z to address these issues and expects to present the
recommendations of the staff to the Board sometime next month. Although the review is still in
process, and neither the staff nor the Board has
made any firm decisions about what can and
should be done, I would like to share with you
some of the particular issues we have been
considering.




Under current requirements, when a home
equity plan is opened, a creditor need only give
those general disclosures that I previously outlined. Creditors are not required to disclose
certain items, such as their right to unilaterally
change the terms and conditions of the plan, or
the possibility that a balloon payment may be
required as part of the plan. It is conceivable that
Regulation Z could be amended to require disclosure of these features. There also may be a
need to require more disclosures in home equity
line advertisements. Some questions raised in
this regard include whether "teaser" rates are
adequately disclosed as only lasting for a limited
time period and whether disclosing a payment
term in an advertisement should require disclosure of other material terms, such as the annual
percentage rate or fees to be charged under the
plan. In considering any additional disclosure
requirements, however, the Board is guided by
the principle that disclosures should provide consumers with essential information, without overloading them with less important information or
unnecessarily raising creditors' compliance
costs.
Another area we have identified as one to look
into concerns the timing of disclosures. Regulation Z currently permits open-end credit disclosures to be given anytime before the first transaction. In the case of home equity lines of credit,
therefore, consumers, in many cases, do not
receive disclosures about the terms and conditions of the plan until closing. Since most home
equity credit plans involve large up-front fees
and tend to be more complex than other types of
open-end credit, an argument can be made for
requiring disclosure of the fees, terms, and conditions of such plans at an earlier time in the
credit process.
Finally, concern has been expressed that consumers may not fully understand the terms and
conditions of the programs. This concern may be
due, in part, to the complexity of these plans and
to the fact that the underlying contracts could run
several pages in length. Currently, Regulation Z
does not require any special format for open-end
disclosures. As a result, in most cases, the disclosures given for these plans are not segregated
from the contractual provisions or highlighted in
any standard manner. We believe that consumers

Statements

to Congress

913

should be alerted to the most important terms
and conditions of the plans for which they
contract. To the extent that the current regulatory requirements fail to meet this goal, it might
be necessary to require that disclosures about
these plans be segregated from other information.
The Federal Reserve Board shares the goal
that consumers receive adequate information at a

relevant stage of the credit process when they
contract for home equity loans. We believe that it
is particularly important that consumers understand these programs since they arguably pose a
greater risk because of their complexity, the
large credit lines generally involved, and the
possibility of losing one's home. Therefore, we
look forward to working with you on this important subject.
•

Statement by Wayne D. Angell, Member, Board
of Governors of the Federal Reserve
System,
before the Subcommittee on Domestic Monetary
Policy of the Committee on Banking, Finance
and Urban Affairs and the Subcommittee on
Procurement, Innovation, and Minority Enterprise Development of the Committee on Small
Business, U.S. House of Representatives,
October 30, 1987.

serve District. The Board requested that the
membership of the Council include persons from
the small business and agricultural communities
in the Districts. Other sectors such as community
banks and organized labor were also included in
some Districts, and their inclusion depended on
the then-existing composition of Reserve Bank
and Branch boards of directors, the existing
formal and informal forums for contact with
different sectors, and the economic diversity of
the particular District. The size and composition
of each Council were left to the discretion of the
Reserve Bank.
From the perspective of the Board of Governors, the Councils have successfully met the
objectives we envisioned when they were established. The benefit to the Federal Reserve lies in
the ability of the Councils to provide economic
intelligence about current developments in the
District to their respective Reserve Bank. The
Banks have found that the concerns raised at
Council meetings have a distinctly regional flavor
that is of importance in the interpretation and
analysis of data on economic activity within the
District.
At the meeting each year with Council representatives in Washington, the Board is informed
firsthand of current and emerging developments
around the country, and the Council members
also confer to exchange views. The discussion
confirms the diversity of economic developments
and the variety of market pressures across Districts, even within the agricultural sector or the
small business community.
I can also report that the Presidents of the
Reserve Banks are of the view that the Council
members contribute additional information or
insight that only "grass roots" sources can pro-

I welcome the opportunity to discuss the functioning and effectiveness of the small business
and agriculture Advisory Councils to the Federal
Reserve Banks. The Board of Governors believes that the Advisory Councils have become a
valuable part of the informal structure of the
Federal Reserve System, and we are joined in
this assessment by the Presidents of the Federal
Reserve Banks.
I am pleased to be accompanied today by
members from the Advisory Councils of three
Districts: Carolyn Draper from the Dallas Reserve Bank's Advisory Council on Small Business and Agriculture, Donald Lynch from the
Philadelphia Reserve Bank's Small BusinessAgriculture Advisory Council, and William Mathers from the Minneapolis Reserve Bank's Advisory Council on Small Business, Agriculture,
and Labor. These Council members have just
participated in the meeting of the Board with
representatives from the Advisory Councils to
the 12 Federal Reserve Districts, which takes
place in the fall of each year.
The Advisory Councils to the Federal Reserve
Banks were established in 1985, with the encouragement of the Congress, for the purpose of
improving communication with various sectors
of economic activity within each Federal Re-




914

Federal Reserve Bulletin • December 1987

vide. Council meetings have provided a forum
for a two-way flow of information—as the Councils learn about the analysis of data that is
performed by the Reserve Banks, and the Banks
learn about the perceptions and expectations of
the small business and agricultural communities
that underlie the data. This additional information has been helpful to the directors of some of
the Reserve Banks who have considered it in
conjunction with their discount rate deliberations.
In your letter of invitation to this hearing, the
Subcommittee Chairmen have raised a number of
questions about the organization and functioning
of the Advisory Councils. I have provided detailed responses in an appendix to this statement. 1 However, let me just briefly indicate that,
while there is considerable organizational variation across the Districts, the Reserve Banks all
consider a wide range of sources of potential
candidates for Council membership. All seek
diversity in geographic, industry, and other characteristics in their selection of Council members,
and all have integrated the Councils fully into
their systems for gathering information about
economic activity in their District.
The small business and agricultural Advisory
Councils to the Federal Reserve Banks are now
in their third year of activity. Last year, at the
Board's request, the Council members who met
in Washington assessed the activities of the
1. The attachments to this statement are available on
request from Publications Services, Board of Governors of
the Federal Reserve System, Washington, D.C. 20551.




Councils in terms of meeting the objectives for
improved communication between the Federal
Reserve and leaders of certain sectors of the
economy. The Council members unanimously
agreed that the activities of the Councils are
beneficial and should be continued. They believed that, with the Councils, policymakers
within the Federal Reserve are better informed of
the nature of the concerns of small business,
agriculture, and other sectors, as well as the
regional diversity of the problems confronting
these sectors.
Citing the diversity of issues across Reserve
Districts, the Council members also agreed that
decisions as to how the Council should function
should continue to be made within the Districts.
The Board specifically raised the possibility of
formal reporting to the Board and received a
unanimous reply that uniform reporting requirements need not, indeed should not, be imposed
by the Board. The Council members felt that
flexibility at the District level would best serve
the purpose of the Advisory Councils and that
the economic intelligence provided by Council
members to the Reserve Banks appropriately
makes its way into the policymaking process
through the participation of the Reserve Bank
Presidents in deliberations of the Federal Open
Market Committee and in other forums. In fact,
the Council members argued persuasively that
increased formality would be counterproductive
to the advisory process that had developed.
The Board appreciates your interest in the
Advisory Councils. I will be happy to answer any
questions you may have.
•

915

Announcements
STATEMENT BY CHAIRMAN GREENSPAN ON
PROVIDING LIQUIDITY TO THE FINANCIAL
SYSTEM

Chairman Alan Greenspan issued the following
statement on October 20, 1987:
The Federal Reserve, consistent with its responsibilities as the Nation's central bank, affirmed today its
readiness to serve as a source of liquidity to support
the economic and financial system.

REVISED LIST OF OTC STOCKS SUBJECT TO
MARGIN REGULATIONS NOW AVAILABLE

The Federal Reserve Board on October 23, 1987,
published a revised list of over-the-counter
(OTC) stocks that are subject to its margin regulations, effective November 10, 1987.
This List of Marginable OTC Stocks supersedes the revised list that was effective on August 11, 1987. Changes that have been made in
the list, which now includes 3,328 OTC stocks,
are as follows: 182 stocks have been included for
the first time, 153 under NMS designation; 36
stocks previously on the list have been removed
for substantially failing to meet the requirements
for continued listing; 56 stocks have been removed for reasons such as listing on a national
securities exchange or involvement in an acquisition.
The list includes all over-the-counter securities
designated by the Board pursuant to its established criteria as well as all stocks designated as
National Market System (NMS) securities for
which transaction reports are required to be
made pursuant to an effective transaction reporting plan. Additional OTC securities may be designated as NMS securities in the interim between
the Board's quarterly publications and will be
immediately marginable. The next publication of
the Board's list is scheduled for February 1988.




In addition to NMS-designated securities, the
Board will continue to monitor the market activity of other OTC stocks to determine which
stocks meet the requirements for inclusion and
continued inclusion on the list.

PUBLICATION OF A N N U A L STATISTICAL
DIGEST, 1986

The Annual Statistical Digest, 1986, is now available. This one-year Digest is designed as a compact source of economic, and especially financial, data. The Digest provides a single source of
historical continuations of the statistics carried
regularly in the F E D E R A L R E S E R V E B U L L E T I N .
The Digest also offers a continuation of series
that formerly appeared regularly in the B U L L E TIN, as well as certain special, irregular tables
that the B U L L E T I N also once carried.
This issue of the Digest covers only 1986
unless data were revised for earlier years. It
serves to maintain the historical series first published in Banking and Monetary
Statistics,
1941-1970, and the Digest for 1970-79 and yearly
issues thereafter. A Concordance of Statistics
will be included with all orders. The Concordance provides a guide to tables that cover the
same material in the current and the previous two
years' issues of the Digest, the ten-year Digest
for 1970-79, and the B U L L E T I N .
Copies of the Digest are available from Publications Services, Mail Stop 138, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. The price is $15.00 per copy.

LIST OF BANK HOLDING
AVAILABLE

COMPANIES

NOW

The annual list of "Bank Holding Companies and
Subsidiary Banks as of December 31, 1986," is
available. The report is $20.00 per copy, and

916

Federal Reserve Bulletin • December 1987

remittance should be made payable to the Board
of Governors of the Federal Reserve System. To
order a copy, please forward the request and
payment to the Office of the Controller, Federal
Reserve Board, Washington, D.C. 20551.
The report includes assets and deposits for
domestic and consolidated companies that have
reported to the Board pursuant to the requirements of the Bank Holding Company Act.

The appointment of Myron L. Kwast as Assistant Director with oversight responsibilities
for the Financial Structure and Monetary and
Financial Studies Sections.
The appointment of David J. Stockton as Assistant Director and Chief of the Economic Activity Section.
The promotion of Thomas D. Simpson, Deputy Associate Director, to Associate Director.
The promotion of Lawrence Slifman, Deputy
Associate Director, to Associate Director.

CHANGES IN BOARD

Division of Monetary Affairs
The appointment of Brian F. Madigan as Assistant Director of the Division with oversight
responsibilities for the Banking and Money Market Analysis, Money and Reserves Projections,
and Banking and Money Market Statistics Sections.

STAFF

The Board of Governors has announced the
following appointments to the official staff, effective October 28, 1987.
In the Office of the Controller, Darrell R.
Pauley has been appointed Assistant Controller
for Finance, and Stephen J. Clark has been
appointed Assistant Controller for Programs and
Budgets.
In the Division of Federal Reserve Bank Operations, Louise L. Roseman has been appointed
Assistant Director for the Check Payments and
Electronic Payments Sections.
Mr. Clark joined the Board's staff in June 1979
and most recently was Chief of the Program
Analysis and Budgets Section in the Office of the
Controller. He has an M.S. in Business Administration from Boston University.
Mr. Pauley joined the Board's staff in August
1975 and most recently was Chief of the Finance
and Accounting Section in the Office of the
Controller. He has a B.B.A. from Marshall University and is a Certified Public Accountant.
Ms. Roseman came to the Board in August
1985 and was most recently a senior program
leader in the Division of Federal Reserve Bank
Operations. She has an M.B.A. from George
Washington University.

Mr. Greene joined the Board's staff in August
1982 and was promoted to Chief of the Automation and Research Computing Section in July
1985. Mr. Greene has a Ph.D. in Economics from
the University of Michigan.
Mr. Kwast joined the Board's staff in June
1978 and became Chief of the Financial Studies
Section in March 1985. Mr. Kwast has a Ph.D. in
Economics from the University of Wisconsin.
Mr. Stockton joined the board's staff in September 1981 and became a senior economist in
the Economic Activity Section in September
1986. Mr. Stockton has a Ph.D. in Economics
from Yale University.
Mr. Madigan joined the Board's staff in July
1979 and was reappointed in September 1983,
after a brief period as senior financial economist
at the Federal National Mortgage Association.
He was promoted to Chief of the Banking Section in April 1985. He has a Ph.D. in Economics
from the Pennsylvania State University.

The Board also announced the following
changes, effective November 16, 1987:

PROGRAM APPROVED FOR AMORTIZATION
OF LOSSES ON AGRICULTURAL
LOANS

Division of Research and Statistics
The appointment of Mark N. Greene as Assistant Director and Chief of the Automation and
Research Computing Section.

The Federal Reserve Board announced approval
on October 30, 1987, of a program allowing
eligible state member banks to amortize losses on
agricultural loans over several years. The eligible




Announcements

state member banks include banks with less than
$100 million in assets but with at least 25 percent
of those assets in qualified agricultural loans.
Although the program is effective beginning
November 9, 1987, amortized loans will first
appear on reports of condition as of December
31, 1987. Consequently, interested state member
banks may contact their Reserve Banks to determine whether they are eligible beginning October
30. Additionally, the Board is requesting comment on the regulation. Comments on this matter
should be received by the Board by December 3,
1987.
The program was created by Title VIII of the
Competitive Equality Banking Act of 1987. Similar programs have been adopted by the Federal
Deposit Insurance Corporation and the Office of
the Comptroller of the Currency.




SYSTEM MEMBERSHIP:
STATE BANKS

ADMISSION

917

OF

The following state banks were admitted to membership in the Federal Reserve System during the
period from October 1 to October 31, 1987:
California
Palo Alto
Mid-Peninsula Bank
Colorado
La Junta
Ark Valley Industrial Bank
Lamar
Lamar Industrial Bank
Florida
Boca Raton
First Southern Bank
Fernandina Beach
First Coast
Community Bank
Orange City
First Community Bank
of Orange City
N O T E . On Page 861 of the November 1987 B U L L E T I N ,
United Virginia Bank (now Crestar Bank) was incorrectly
listed as a recently admitted member of the Federal Reserve
System when in fact it had been a member for many years.

919

Legal Developments
FINAL GUIDELINES
BRIBERY ACT

REGARDING

THE BANK

The Board of Governors has approved final guidelines
regarding the Bank Bribery Act as required by the
Bank Bribery Amendments Act of 1985. The guidelines were developed by the Interagency Bank Fraud
Enforcement Working Group and submitted to the
Federal Financial Institutions Examination Council
for its consideration and submission to each of the
federal financial institutions regulatory agencies. The
final guidelines encourage all state member banks and
bank holding companies to adopt codes of conduct or
written policies that describe the prohibitions of the
bank bribery law. They also identify situations that, in
the opinion of the Board of Governors, do not constitute violations of the federal bank bribery law. In
addition, the final guidelines suggest that State member banks and bank holding companies themselves
establish, in their own codes of conduct or written
policies, a range of internally acceptable dollar
amounts for the various benefits that their officials may
receive from those doing or seeking to do business
with them.
Effective October 21, 1987, as required by the Bank
Bribery Amendments Act of 1985 (P.L. 99-370), the
Board adopts the following guidelines regarding the
Bank Bribery Act, 18 U.S.C. section 215:

Final Guidelines
The final guidelines encourage all State member banks
and bank holding companies to adopt internal codes of
conduct or written policies or amend their present
codes of conduct or policies to include provisions that
explain the general prohibitions of the bank bribery
law. The guidelines relate only to the bribery law and
do not address other areas of conduct that a State
member bank or bank holding company would find
advisable to cover in its code of conduct or written
policy. Consistent with the intent of the statute to
proscribe corrupt activity within financial institutions,
the code or policy should prohibit any employee,
officer, director, agent or attorney of a State member
bank or bank holding company (hereinafter "Bank or
Bank Holding Company Official" or "Bank or Bank
Holding Company Officials") from:




(1) soliciting for themselves or for a third party
(other than the bank or bank holding company itself)
anything of value from anyone in return for any
business, service or confidential information of the
bank or bank holding company and from;
(2) accepting anything of value (other than bona fide
salary, wages and fees as referred to in 18 U.S.C.
Section 215(c)) from anyone in connection with the
business of the bank or the bank holding company,
either before or after a transaction is discussed or
consummated.
The State member banks' and bank holding companies' codes or policies should be designed to alert
Bank or Bank Holding Company Officials about the
bank bribery statute, as well as to establish and
enforce standards relating to acceptable business practices.
In its code of conduct or written policy, the State
member bank or bank holding company may, however, specify appropriate exceptions to the general
prohibition of accepting something of value in connection with bank or bank holding company business.
There are a number of instances where a Bank or Bank
Holding Company Official, without risk of corruption
or breach of trust, may accept something of value from
one doing or seeking to do business with the bank or
bank holding company. The most common examples
are the business luncheon or the holiday gift from a
customer. In general, there is no threat of a violation
of the statute if the acceptance is based on a family or
personal relationship existing independent of any business of the institution; if the benefit is available to the
general public under the same conditions on which it is
available to the Bank or Bank Holding Company
Official; or if the benefit would be paid for by the bank
or bank holding company as a reasonable business
expense if not paid for by another party. Indeed, by
adopting a code of conduct or written policy with
appropriate allowances for such circumstances, a
State member bank or bank holding company recognizes that acceptance of certain benefits by its Bank or
Bank Holding Company Officials does not amount to a
corrupting influence on the bank's or bank holding
company's transactions.
In issuing guidance under the statute in the area of
business purpose entertainment or gifts, it is not

920

Federal Reserve Bulletin • December 1987

advisable for the Board of Governors to establish rules
about what is reasonable or normal in fixed dollar
terms. What is reasonable in one part of the country
may appear lavish in another part of the country. A
State member bank or bank holding company should
seek to embody the highest ethical standards in its
code of conduct or written policy. In doing this, a
State member bank or bank holding company may
establish in its own code or policy a range of dollar
values which cover the various benefits that its Bank
or Bank Holding Company Officials may receive from
those doing or seeking to do business with the bank or
bank holding company.
The code of conduct or written policy should provide that, if a Bank or Bank Holding Company Official
is offered or receives something of value beyond what
is authorized in the bank's or bank holding company's
code of conduct or written policy, the Bank or Bank
Holding Company Official must disclose that fact to an
appropriately designated official of the financial institution. The State member bank or bank holding company should keep contemporaneous written reports of
such disclosures. An effective reporting and review
mechanism should serve to prevent situations that
might otherwise lead to implications of corrupt intent
or breach of trust and should enable the bank or bank
holding company to better protect itself from selfdealing. However, a Bank or Bank Holding Company
Official's full disclosure evidences good faith when
such disclosure is made in the context of properly
exercised supervision and control. Management
should review the disclosures and determine that what
is accepted is reasonable and does not pose a threat to
the integrity of the State member bank or bank holding
company. Thus, the prohibitions of the bank bribery
statute cannot be avoided by simply reporting to
management the acceptance of various gifts.
The Board of Governors recognizes that a serious
threat to the integrity of a State member bank or bank
holding company occurs when its Bank or Bank Holding Company Officials become involved in outside
business interests or employment that gives rise to a
conflict of interest. Such conflicts of interest may
evolve into corrupt transactions that are covered under the bank bribery statute. Accordingly, State member banks and bank holding companies are encouraged
to prohibit, in their codes of conduct or policies, their
Bank or Bank Holding Company Officials from selfdealing or otherwise trading on their positions with the
bank or bank holding company or accepting from one
doing or seeking to do business with the bank or bank
holding company a business opportunity not available
to other persons or that is made available because of
such official's position with the State member bank or
bank holding company. In this regard, a State member



bank's or bank holding company's code of conduct or
policy should require that its Bank or Bank Holding
Company Officials disclose all potential conflicts of
interest, including those in which they have been
inadvertently placed due to either business or personal
relationships with customers, suppliers, business associates, or competitors of the bank or bank holding
company.

Exceptions
In its code of conduct or written policy, a State
member bank or bank holding company may describe
appropriate exceptions to the general prohibition regarding the acceptance of things of value in connection
with bank or bank holding company business. These
exceptions may include those that:
(a) permit the acceptance of gifts, gratuities, amenities or favors based on obvious family or personal
relationships (such as those between the parents,
children or spouse of a Bank or Bank Holding
Company Official) where the circumstances make it
clear that it is those relationships rather than the
business of the bank or bank holding company
concerned which are the motivating factor;
(b) permit acceptance of meals, refreshments, travel
arrangements or accommodations, or entertainment, all of reasonable value and in the course of a
meeting or other occasion the purpose of which is to
hold bona fide business discussions, provided that
the expenses would be paid for by the State member
bank or bank holding company as a reasonable
business expense, if not paid for by another party
(the bank or bank holding company may establish a
specific dollar limit for such an occasion);
(c) permit acceptance of loans from other banks or
financial institutions on customary terms to finance
proper and usual activities of Bank or Bank Holding
Company Officials, such as home mortgage loans,
except where prohibited by law;
(d) permit acceptance of advertising or promotional
material of reasonable value, such as pens, pencils,
note pads, key chains, calendars and similar items;
(e) permit acceptance of discounts or rebates on
merchandise or services that do not exceed those
available to other customers;
(f) permit acceptance of gifts of reasonable value
that are related to commonly recognized events or
occasions, such as a promotion, new job, wedding,
retirement, Christmas or bar or bat mitzvah (the
bank or bank holding company may establish a
specific dollar limit for such an occasion); or
(g) permit the acceptance of civic, charitable, educational, or religious organizational awards for recognition of service and accomplishment (the bank or

Legal Developments

bank holding company may establish a specific
dollar limit for such an occasion).
The policy or code may also provide that, on a case
by case basis, a State member bank or bank holding
company may approve of other circumstances, not
identified above, in which a Bank or Bank Holding
Company Official accepts something of value in connection with bank or bank holding company business,
provided that such approval is made in writing on the
basis of a full written disclosure of all relevant facts
and is consistent with the bank bribery statute.

Disclosures and Reports
To make effective use of these guidelines, the Board of
Governors recommends the following additional procedures:
(a) The State member bank or bank holding company should maintain a copy of any code of conduct
or written policy it establishes for its Bank or Bank
Holding Company Officials, including any modifications thereof.
(b) The State member bank or bank holding company should require an initial written acknowledgement of its code or policy and a written acknowledgement of any subsequent material changes to
the code or policy from its Bank or Bank Holding
Company Officials and the Bank or Bank Holding
Company Officials' agreement to comply therewith.
(c) The State member bank or bank holding company should maintain contemporaneous written reports of any disclosures made by its Bank or Bank
Holding Company Officials in connection with a
code of conduct or written policy.

ORDERS ISSUED UNDER BANK
HOLDING
COMPANY ACT, BANK MERGER ACT, BANK
SERVICE CORPORATION ACT, AND FEDERAL
RESERVE ACT

Orders Issued Under Section 3 of the Bank
Holding Company Act
Alaska Mutual Bancorporation
Anchorage, Alaska
Order Approving the Merger of Bank Holding
Companies
Alaska Mutual Bancorporation, Anchorage, Alaska, a
bank holding company within the meaning of the Bank
Holding Company Act of 1956, as amended (12 U.S.C.
§ 1841 et seq.) ("BHC Act"), has applied for the



921

Board's approval under section 3(a)(5) of the BHC Act
(12 U.S.C. § 1842(a)(5)) to merge with United Bancorporation Alaska, Inc., Anchorage, Alaska ("United"),
also a bank holding company within the meaning of the
BHC Act. 1 After the merger with United, Applicant
will retain its charter, but will conduct business under
a new name, Alliance Bancorporation.
Notice of the application, affording an opportunity
for interested persons to submit comments, has been
given in accordance with section 3(b) of the BHC Act
(12 U.S.C. § 1842(b)). The time for filing comments
has expired and the Board has considered the application and all comments received in light of the factors
set forth in section 3(c) of the BHC Act (12 U.S.C.
§ 1842(c)).
Applicant is the second largest commercial banking
organization in Alaska, controlling one subsidiary
bank with total deposits of $692 million, representing
17 percent of the total deposits in commercial banks in
the state. 2 United is the fifth largest commercial banking organization in Alaska, controlling two subsidiary
banks with total deposits of $440 million, representing
10.8 percent of the total deposits in commercial banks
in the state. Upon consummation of the proposed
transaction, Applicant would become the largest commercial banking organization in the state, with total
deposits of $1.1 billion, representing 27.8 percent of
the total deposits in commercial banks in the state.
The Board has considered carefully the effects of the
combination of the second and fifth largest commercial
banking organizations in Alaska on the concentration
of banking resources in the state. The Board notes that
after consummation of the proposal, numerous banking alternatives would remain in Alaska. Based on the
foregoing and other facts of record, the Board concludes that the proposed transaction would have no
substantial adverse effects on the concentration of
banking resources in Alaska.
In evaluating this application, the Board has considered the financial resources of Applicant and the effect
on those resources of the proposed acquisition. The
Board has stated and continues to believe that capital
adequacy is an especially important factor in the
analysis of bank holding company proposals, particu-

1. As part of this merger, United's subsidiary bank, United Bank
Alaska, Anchorage, a state-chartered bank, will merge into Applicant's subsidiary bank, Alaska Mutual Bank, Anchorage ("AMB"), a
state-chartered stock savings bank. The resulting bank will continue
to do business under the charter of AMB and its new name, Alliance
Bank. Subsequent to this bank merger, United's other subsidiary
bank, United Bank Alaska Southeastern, Juneau, Alaska, also a
state-chartered bank, will be merged into Alliance Bank. Federal
Deposit Insurance Corporation approval of both bank mergers is being
sought, pursuant to the Bank Merger Act, 12 U . S . C . § 1828(c),
contemporaneously with this application.
2. State banking data are as of December 31, 1986.

922

Federal Reserve Bulletin • December 1987

larly in transactions such as this in which the acquisition of a large organization experiencing financial
problems is proposed.
This proposal is designed to significantly enhance
the financial resources of Applicant. This acquisition
has been structured as an exchange of shares, and
Applicant will not incur any debt in connection with
this proposal. The Board has given special attention to
Applicant's commitment to issue significant amounts
of additional primary capital to augment its capital
base following consummation of this proposal. In
addition, the Federal Deposit Insurance Corporation
has agreed to make a significant capital contribution to
Applicant, which will assist its recapitalization plan.
This increase in primary capital is considered to be a
significant factor weighing in favor of the proposal.
After a review of Applicant's proposal in light of the
financial condition of Applicant and United and the
current difficulties in the Alaska economy, the Board
concludes that the pro forma financial and managerial
resources of Applicant and its subsidiary bank, are
consistent with approval. In reaching this decision, the
Board has noted as a matter of particular importance
the circumstances under which this merger has been
arranged. Due in part to a weak state economy,
Applicant and United have experienced a decline in
operating performance and recently have experienced
significant financial losses. The merger of the two
companies and resulting cost savings are anticipated to
position Applicant to better withstand the current
difficult economic situation in the energy and real
estate sectors of the economy.
The Board also has considered that this proposal,
under the circumstances, represents the best available
alternative to address the financial difficulties of Applicant and United. Based on all of the preceding
financial factors and other facts of record, the Board
concludes that, on balance, the financial resources of
Applicant and its subsidiary bank are consistent with
approval of this application.
Applicant and United compete directly in the Anchorage banking market. 3 Applicant is the largest of 11
commercial banking organizations in the market, with
total deposits of $516 million, representing 22.3 percent of total deposits in commercial banks in the
market. 4 United is the third largest commercial banking organization in the market, with total deposits of
$320 million, representing 13.8 percent of total depos-

3. The Anchorage, Alaska, banking market consists of the Anchorage Ranally Metropolitan Area.
4. Market data are as of June 30, 1985.




its in commercial banks in the market. Upon consummation of this proposal, Applicant would remain the
largest commercial banking organization in the market
and would control 36.1 percent of the total deposits in
commercial banks in the market. The Anchorage
banking market is moderately concentrated, with the
four largest banking organizations in the market controlling 66.1 percent of the deposits in the market.
Upon consummation of the proposal, the market
would become concentrated, with the four-firm concentration ratio increasing to 77 percent. The market's
Herfindahl-Hirschman Index ("HHI") would increase
by 615 points from 1424 to 2039.5
Although consummation of this application would
eliminate some existing competition between Applicant and United in the Anchorage banking market,
certain facts and circumstances of this case mitigate
the anticompetitive effects that would otherwise result
from the consummation. Numerous other banking
organizations, including two thrift institutions, would
remain in the market following consummation of the
proposal. Moreover, the record of this application
indicates that this transaction would provide substantial benefits to the convenience and needs of the
community by averting further deterioration of the
financial condition of Applicant and United. In this
context, the Board concludes that the benefit of maintaining services to the customers of Applicant and
United that would be derived from this proposal are so
substantial as to outweigh any anticompetitive effects
of this proposal.
Based on the foregoing and other facts of record, the
Board has determined that the application under the
BHC Act should be and hereby is approved. The
transaction shall not be consummated before the fifth
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
San Francisco pursuant to delegated authority.
By order of the Board of Governors, effective
October 28, 1987.

5. Under the revised Department of Justice Merger Guidelines (49
Federal Register 26,823 (1984)) a market in which the post-merger
HHI is over 1800 is considered concentrated. In such markets, the
Department is likely to challenge a merger that increases the HHI by
more than 50 points. The Department has informed the Board that a
bank merger or acquisition generally will not be challenged (in the
absence of other factors indicating anticompetitive efiFects) unless the
post-merger HHI is at least 1800 and the merger increases the HHI by
at least 200 points. The Justice Department has stated that the higher
than normal HHI thresholds for screening bank mergers for anticompetitive efiFects implicitly recognizes the competitive effect of limitedpurpose lenders and other non-depository financial entities.

Legal Developments

Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Heller, and Kelley.
JAMES M C A F E E

[SEAL]

Associate Secretary of the Board

Fairfax Bancshares, Inc.
Fairfax, Missouri
Order Approving Acquisition of a Bank
Fairfax Bancshares, Inc., Fairfax, Missouri, a bank
holding company within the meaning of the Bank
Holding Company Act ("Act"), 12 U.S.C. § 1841
et seq., has applied pursuant to section 3(a)(3) of the
Act, 12 U.S.C. § 1842(a)(3), to acquire 30 percent of
the voting shares of The Farmers and Valley Bank,
Tarkio, Missouri.
Notice of the application, affording interested persons an opportunity to submit comments, has been
given in accordance with section 3(b) of the Act. The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the Act.
Applicant is a Missouri corporation with one bank
subsidiary, controlling deposits of $13.5 million, representing 0.03 percent of total deposits in commercial
banking organizations in the state. Bank is the 464th
largest commercial bank in Missouri, controlling deposits of $14 million, representing 0.03 percent of total
deposits in commercial banking organizations in the
state. 1 Upon consummation of this proposal, Applicant would continue to rank among the smallest commercial banking organizations in the state, controlling
0.06 percent of total deposits in commercial banking
organizations in the state. Consummation of the proposal would not significantly increase the concentration of banking resources in Missouri.
Applicant's subsidiary bank competes directly with
Bank in the Atchison County banking market. 2 Applicant is the smallest of five banking organizations in the
market, controlling deposits of $13.5 million, representing 12.8 percent of total market deposits. Bank is
the fourth largest bank in the market, controlling $14
million in deposits, representing 13.3 percent of total
market deposits. Upon consummation of this proposal, Applicant would become the second largest
commercial banking organization in the market, controlling 26 percent of total market deposits. The market is considered highly concentrated, with a four-firm

923

concentration ratio of 87.2 percent and a HerfindahlHirschman Index ("HHI") of 2288. Upon consummation of this proposal the four-firm concentration ratio
would increase to 100 percent and the HHI would
increase by 339 points to 2627.3
Although consummation of this proposal would
eliminate existing competition between Applicant and
Bank, several factors mitigate the competitive effects
of the proposal. Competition between Applicant's
subsidiary bank and Bank has been reduced by the
long-term involvement of a principal of Applicant and
its subsidiary bank as a management official of Bank.
In addition, the Board has previously considered the
impact of market demographic and economic factors
as factors mitigating adverse competitive effects. 4 The
Atchison County banking market is a rural, sparsely
populated area experiencing a severe economic decline. The population of Atchison County has declined
and the county lags the state in most measures of
economic performance, including per capita income.
Both Applicant and Bank are small in absolute size
and may derive some economies of scale from consolidation. In addition, Applicant and Bank have not been
active competitors in the market, as evidenced by their
relatively low shares of loans, rates of deposit growth,
and ratios of loans to deposits. 5 Finally, one of the
competing organizations that would remain in the
market is a subsidiary of the seventh largest bank
holding company in the state. Consequently, the
Board has determined that, in view of all of the facts of
record, consummation of this proposal would not have
a significant adverse effect on existing competition in
the Atchison County banking market. Thus, the Board
concludes that competitive aspects are consistent with
approval.
The financial and managerial resources of Applicant, its subsidiary bank, and Bank are consistent with
approval. Considerations relating to the convenience
and needs of the communities to be served are also
consistent with approval.

3. Under the revised Department of Justice Merger Guidelines (49
Federal Register 26,823 (June 29, 1984)), any market in which the
post-merger HHI is over 1800 is considered highly concentrated, and
the Department is likely to challenge a merger that increases the HHI
by more than 50 points unless other factors indicate that the merger
will not substantially lessen competition. The Department of Justice
has informed the Board that a bank merger or acquisition is likely to
be challenged (in the absence of other factors indicating an anticompetitive effect) if the post-merger HHI is at least 1800 and the merger
increases the HHI by at least 200 points.
The Department of Justice has informed Board staff that the
Department will not challenge this acquisition on antitrust grounds.
4 . See

St. Ansgar

State

Bank,

7 0 F E D E R A L RESERVE B U L L E T I N 4 7 3

(1984).

1. All banking data are as of December 31, 1986.
2. The Atchison County banking market is approximated by Atchison County, Missouri.




5. As of December 31, 1985, the loan to deposit ratios of Bank and
Applicant were 8.33 and 5.35, respectively. The loan to deposit ratios
for the three competing banks in the market averaged 41.03.

924

Federal Reserve Bulletin • December 1987

Based on the foregoing and other factors of record,
the Board has determined that the application should
be, and hereby is, approved. The acquisition 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 Kansas
City, acting pursuant to delegated authority.
By order of the Board of Governors, effective
October 26, 1987.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Heller, and Kelley.
JAMES M C A F E E

[SEAL]

Associate Secretary of the Board

M & F Capital Corporation
Macon, Mississippi
Order Approving Formation of a Bank Holding
Company
M & F Capital Corporation, Macon, Mississippi, has
applied for the Board's approval pursuant to section
3(a)(1) of the Bank Holding Company Act (12 U.S.C.
§ 1842(a)(1)) (the "BHC Act") to become a bank
holding company by acquiring all of the voting shares
of Merchants and Farmers Bank, Macon, Mississippi
("Bank").
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (52 Federal Register 27,460 (1987)). The
time for filing comments has expired, and the Board
has considered the application and all comments received, including comments in opposition to the application from the Mississippi Legal Services Coalition
("Mississippi Coalition"), in light of the factors set
forth in section 3(c) of the BHC Act (12 U.S.C.
§ 1842(c)).
Applicant is a nonoperating company with no subsidiaries, formed for the purpose of acquiring Bank.
Bank is the largest of three commercial banking organizations in the Noxubee County market, 1 controlling
deposits of $42.2 million representing 60.3 percent of
total market deposits. 2 None of the principals of
Applicant or Bank is associated with any other financial institutions located within the relevant banking

1. The Noxubee County market is approximated by Noxubee
County, Mississippi.
2. All banking data are as of December 31, 1986.




market. Accordingly, consummation of this proposal
would not have any significant effect on existing or
probable future competition, nor would it significantly
increase the concentration of banking resources in the
relevant banking market.
The financial and managerial resources of Applicant
and Bank are considered satisfactory and consistent
with approval. In considering the convenience and
needs of the communities to be served, the Board has
also taken into account Applicant's record under the
Community Reinvestment Act (12 U.S.C. § 2901
et seq. ("CRA")). The CRA requires the Board, in its
evaluation of a bank holding company application, to
assess the record of an applicant in meeting the credit
needs of the entire community, including low- and
moderate-income neighborhoods, consistent with safe
and sound operation. The Board has received comments from the Mississippi Coalition, which represents low-income and minority groups and individuals
in Macon. The Mississippi Coalition contends that
Bank has failed to "accurately serve" the convenience
and needs of low-income and minority persons in the
Noxubee and Kemper County area. 3
In accordance with the Board's practice and procedures for handling protested applications, 4 the Board
reviewed the allegations made by the Mississippi Coalition and Applicant's response. Bank has met privately with the Mississippi Coalition and has made a
number of commitments designed to tailor its services
more closely to the convenience and needs of its
community. Bank has committed to: continue to pursue the establishment of a mortgage loan department
offering VA and FHA loans; advertise that an unaffiliated mortgage company will accept VA and FHA
applications on Bank's premises; increase the number
of home improvement and business loans made to
minorities; advertise loan products on a local radio
station; and increase its number of minority employees
and officers.
The Board notes that the FDIC has previously
determined that the CRA record of Bank is satisfactory. The Board has carefully reviewed Bank's record
in meeting the convenience and needs of all segments

3. The Mississippi Coalition asserts that the Board should not
approve this application, unless Bank establishes an affirmative lending program that would target loans to low income and minority
neighborhoods and areas within Bank's service area; increases the
number of home improvement loans, short-term working capital for
neighborhood businesses, loans for community development corporations, and FHA, FmHA and VA loans made to minorities and
low-to-moderate income residents; includes an aggressive marketing
program such as targeting advertising to minority groups and neighborhoods; and establishes a dollar goal for lending in the low-income
and minority neighborhoods in Bank's service area.
4. See 12 C.F.R. § 262.25(c).

Legal Developments

of its community. 5 Based on this review and after
taking into account Bank's commitments to enhance
its service to meet the convenience and needs of its
community, including low- and moderate-income segments, the Board concludes that convenience and
needs considerations are consistent with approval of
this application. 6
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. The acquisition of Bank shall
not be consummated before the thirtieth calendar day
following the effective date of this Order, or later than
90 days after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of St. Louis, pursuant to
delegated authority.
By order of the Board of Governors, effective
October 13, 1987.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, and Heller. Absent and not voting:
Governor Kelley.
JAMES M C A F E E

[SEAL]

Associate Secretary of the Board

Wake Bancorp, Inc.
Wakefield, Massachusetts
Order Approving Formation of a Bank Holding
Company
Wake Bancorp, Inc., Wakefield, Massachusetts, has
applied for the Board's approval pursuant to section

5. The record demonstrates that Bank has made over 50 percent of
its installment loans secured by real estate or mobile homes and 28
percent of its total commercial real estate loans to minority residents.
Moreover, over 50 percent of the government guaranteed student
loans made by bank and over half of its automobile loans were made
to minority residents. In addition, Bank currently offers free checking
to persons 65 years and older as well as checking accounts at reduced
rates for low-income individuals. As noted above, Applicant has
committed to continue to pursue establishing a VA, FHA, or FmHA
mortgage loan program.
6. The Mississippi Coalition has also requested that the Board
order a public meeting to receive public testimony on the issues
presented by these applications. Although section 3(b) of the BHC Act
does not require a public meeting or formal hearing in this instance,
the Board may, in any case, order a public meeting or hearing. See
12 C.F.R. § 262.25(d). In its request for a public meeting, the
Mississippi Coalition does not present any material questions of fact
that are in dispute. In accordance with the Board's guidelines,
Applicant and the Mississippi Coalition have met privately to discuss
this application and have exchanged extensive correspondence. In the
Board's view, the parties have had ample opportunity to present their
arguments in writing and respond to one another's submissions. Based
on these facts, the Board has determined that a public hearing or an
informal public meeting is not necessary to clarify the record in this
case and would serve no useful purpose. Accordingly, the Mississippi
Coalition's request for a public meeting is hereby denied.




925

3(a)(1) of the Bank Holding Company Act (12 U.S.C.
§ 1842(a)(1)) (the "BHC Act") to become a bank
holding company by acquiring all of the voting shares
of Wakefield Savings Bank, Wakefield, Massachusetts
("Bank"), an FDIC insured savings bank. 1 Bank
presently operates as a mutual association and will
convert to stock form in connection with the acquisition.
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (52 Federal Register 28,192 (1987)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the Act (12 U.S.C. § 1842(c)).
Applicant is a nonoperating company formed for the
purpose of acquiring Bank. Bank is the 75th largest
banking organization in Massachusetts, with approximately $215.4 million in deposits, controlling less than
one percent of the total deposits in banking organizations in Massachusetts. 2
Bank is the 15th largest of 58 banking organizations
in the Boston market, 3 controlling less than one percent of total deposits in banks in the market. 4 In view
of the fact that the proposal represents a corporate
reorganization, consummation of this proposal would
not result in any adverse effects upon competition or
increase the concentration of banking resources in any
relevant market. Accordingly, the Board concludes
that competitive considerations under the BHC Act
are consistent with approval.
In evaluating the financial resources of Applicant
and Bank, the Board has taken into consideration the
fact that Bank engages through subsidiaries in real
estate investment and development activities authorized pursuant to state law. The Board notes that the
Competitive Equality Banking Act of 1987 amended
the BHC Act to provide that "notwithstanding any
other provision of [the BHC] Act, any qualified savings bank which is a subsidiary of a bank holding
company may engage, directly or through a subsidiary, in any activity in which such savings bank may
engage (as a State chartered savings bank) pursuant to
express, incidental or implied powers under any stat-

1. As an FDIC insured institution, Bank would qualify as a "bank"
under section 2(c) of the BHC Act, as amended by section 101(a) of
the Competitive Equality Banking Act of 1987 ("CEBA"), Pub. L.
No. 100-86, 100 Stat. 552, 554 (1987) (to be codified at 12 U.S.C.
§ 1841(c)).
2. Deposit data are as of March 31, 1987.
3. The Boston market is approximated by the Boston RMA minus
the New Hampshire towns of Brentwood, Chester, and Derry plus the
Massachusetts towns of Ayer, Berlin, Groton, Harvard, Pepperell,
Shirley, and those portions of Bellingham, Carver, Lakeville, Middleboro, and Plymouth not already included in the RMA.
4. Market data are as of June 30, 1985.

926

Federal Reserve Bulletin • December 1987

ute or regulation, or under any judicial interpretation
of any law, of the State in which such savings bank is
located." 5 Under this provision, a qualified savings
bank may engage directly or through a subsidiary in
any activity permitted by state law for the savings
bank to conduct as a savings bank, even though the
Board has not determined that the activity is closely
related to banking under section 4(c)(8) of the BHC
Act and the activity is thus not generally permissible
for bank holding companies under the Act.
While this provision of CEBA authorizes qualified
savings banks to conduct activities that may not be
permissible for bank holding companies under the
BHC Act, CEBA does not negate the Board's responsibility in the context of every bank holding company
application to evaluate the financial resources of the
bank holding company and the bank to be acquired. 6
In addition, under the International Lending Supervision Act ("ILSA"), the Board is responsible for
ensuring that bank holding companies and their nonbank subsidiaries maintain adequate levels of capital. 7
In this regard, the Board notes that the Senate Report
on this provision of CEBA states that, while it was
intended to allow qualified savings banks to engage in
state authorized activities, "[t]he Board would, however, be authorized under its general supervisory
authority over bank holding companies and their subsidiaries to prevent unsafe or unsound activities; or to
require the bank holding company to maintain higher
levels of capital to support such activities." 8
As part of the Board's analysis in this case, including its evaluation of the capital and financial resources
of the bank holding company and bank involved, the
Board has considered the risk to Applicant and Bank
of the real estate development activities conducted by
Bank through its nonbank subsidiaries. The Board has
serious reservations with this and similar applications
by bank holding companies to acquire savings banks
engaged directly or through subsidiaries in real estate
development activities. In its December 31, 1986 proposal regarding the real estate development activities
of bank holding companies and their subsidiaries, the
Board expressed the view that such activities involve
a significant degree of risk beyond other activities
conducted by banks and bank holding companies. (52
Federal Register 543 (1987)).
Accordingly, in its proposal the Board asked for
comment on a series of prudential safety and sound5. 101 Stat, at 561-562 (to be codified at 12 U.S.C. § 1842(f)). This
exception applies only to "qualified savings banks." A savings bank
loses its qualification if it is controlled by a bank holding company that
has less than 70 percent of its assets invested in savings banks.
6. 12 U.S.C. § 1842(c).
7. 12 U.S.C. §§ 3901-3912.
8. S. Rep. No. 100-19, 100th Cong., 1st Sess. 36 (1987).




ness limitations to ensure that the risk from these
activities is insulated to the maximum extent possible
from federally insured banking organizations affiliated
within a bank holding company system. Among these
limitations was a proposed requirement that real estate
development activities be authorized only through a
nonbank subsidiary of the bank holding company and
not through subsidiaries of a holding company bank.
The Board indicated such a requirement would be
intended to separate the subsidiary banks of bank
holding companies as much as possible from real
estate development activities, including the direct legal obligation for losses that might result from the
conduct of such activities.
In the Board's view, the conduct of real estate
development activities through a holding company
subsidiary rather than a bank subsidiary would provide more effective corporate separateness between
the bank and the real estate affiliate with a corresponding minimization of the risk that the bank's resources
and those of the federal safety net would be used to
support the affiliate or could be affected by difficulties
of the affiliate. Under such a structure, the bank would
be removed from the affiliate's ownership chain and
the concomitant responsibility for the management
and operations of the affiliate. This separation would
be particularly important from the standpoint of corporate separateness in a situation of financial stress.
The Board notes that in such a situation the management of the bank may feel compelled to dispense with
normal corporate formalities and take direct control
over the management and operations of a subsidiary,
thereby subjecting the bank to the increased risk of
liability for the losses of that subsidiary. The Board
also notes that in such a situation the bank may feel
pressured to lend its resources to the affiliate or its
customers or business associates, to relax normal
credit judgments, or to provide financial support to its
subsidiary, or to customers or business associates of
the subsidiary, other than through a direct credit
extension.
Moreover, under the holding company structure,
the losses of the holding company affiliate would not
be consolidated with the bank's earnings and customers of the bank and the public may be less likely to
perceive the affiliate to be an integral part of the bank,
providing additional safeguards for maintaining public
confidence in the bank.
The Board intends to review these and other questions raised by this application, including questions
related to the appropriate capital requirements for
bank holding companies that control savings banks
engaged in real estate development activities as well as
for their nonbank subsidiaries, in connection with the
Board's pending real estate investment and develop-

Legal Developments

ment proposal. 52 Federal Register 543, 551 (1987). In
that proceeding, the Board has asked for comment on
whether it should modify its existing regulation (section 225.22(d)(2)) to prohibit holding company banks
from holding shares of a company engaged in real
estate development activities. 9 The Board has also
proposed for consideration whether additional safety
and soundness limitations are appropriate for the
conduct by bank holding companies and their nonbank
subsidiaries of real estate development activities.
The Board believes that it is appropriate to resolve
these important issues that affect a large number of
other institutions through a rulemaking proceeding in
which the Board has had the benefit of extensive
public comment and in which all parties interested in
this question may participate. In this regard, the Board
has also today asked for comment on certain additional measures that the Board is considering to ensure
that banking organizations and the resources of the
federal safety net are appropriately insulated from the
risks of real estate development activities. These include proposals to determine that a real estate subsidiary of a bank, as well as under certain circumstances,
a partner or co-venturer of such a subsidiary, would be
an "affiliate" of the bank for purposes of section 23 A
of the Federal Reserve Act (12 U.S.C. § 371c(b)(2)),
thereby regulating transactions between the bank and
its real estate subsidiaries and partners; to impose
special capital requirements on bank holding companies and their nonbank subsidiaries engaged in real
estate development activities; and to require, as a
matter of safety and soundness and as a condition of
its approval for bank holding companies to acquire
qualified savings banks, that new real estate development investments by such organizations be made by
the parent bank holding company or its direct nonbank
subsidiaries rather than by the bank or subsidiaries of
the bank. This latter proposal would be in the event
the Board authorizes bank holding companies to engage in real estate development activities (subject to
certain prudential limitations) at the expiration of the
real estate moratorium imposed under Title II of
CEBA. In the interim, the Board will continue to
evaluate applications involving qualified savings banks
on a case by case basis.

927

Based upon its review of the facts in this case as well
as certain commitments by Applicant regarding its
capital position and that of Bank, the Board concludes
that the financial and managerial resources and future
prospects of Applicant and Bank are consistent with
approval of the proposal. In reaching this decision, the
Board has relied upon Applicant's commitment to
comply with the results of the Board's real estate
development rulemaking. The Board's approval of this
application is conditioned upon compliance with these
commitments.
Considerations relating to the convenience and
needs of the community to be served are consistent
with approval.
Bank also underwrites and sells Savings Bank Life
Insurance ("SBLI") through a department of Bank
pursuant to state law. Such activities are expressly
authorized for qualified savings banks under CEBA, 10
and are thus not subject to the insurance moratorium
provisions of Title II of CEBA. 11 The Board has
previously expressed its opinion that these activities
do not raise serious financial or safety and soundness
concerns. Accordingly, the Board has determined that
Bank's SBLI activities do not preclude approval of
this application.
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. The acquisition of Bank shall
not be consummated before the thirtieth calendar day
following the effective date of this Order, or later than
90 days after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Boston, pursuant to
delegated authority.
By order of the Board of Governors, effective
October 30, 1987.
Voting for this action: Chairman Greenspan and Governors
Seger, Heller, and Kelley. Voting against this action: Governors Johnson and Angell.
JAMES M C A F E E

[SEAL]

Associate Secretary of the Board

STATEMENT BY GOVERNORS
ANGELL

JOHNSON

AND

We share the concerns expressed by the majority of
the Board in this case regarding the risks associated
9. Under section 225.22(d)(2) of Regulation Y, a state bank subsidiary of a bank holding company may, without Board approval under
the BHC Act, acquire and retain all of the voting shares of a company
that engages solely in activities that the bank may conduct directly at
locations at which the bank may conduct the activity and subject to
the same limitations as would apply to the bank. 12 C.F.R.
225.22(d)(2).




10. 101 Stat, at 562 (to be codified at 12 U.S.C. § 1842(f)(3)).
11. Section 201(b)(3) and (4), 101 Stat, at 582.

928

Federal Reserve Bulletin • December 1987

with the conduct of real estate investment and development activities by banks and subsidiaries of banks.
Given the nature of these activities and their significant risk beyond the risks associated with traditional
banking and permissible nonbanking activities, we
believe that, consistent with safe and sound banking
practices, these activities should not be conducted by
a subsidiary of a holding company bank as proposed
by Applicant.
We note that the Board has proposed regulations
that would establish a framework and prudential limitations for the conduct of real estate development
activities within a holding company system. As the
majority notes, among these limitations is a requirement that the activities be conducted only by a direct
nonbank subsidiary of the bank holding company and
not through a subsidiary of a holding company bank.
In light of the significant risks associated with real
estate development activities, we would defer action
on this application until after the Board completes its
rulemaking proposal in this area. In the event that the
Board were to adopt the proposed framework for the
conduct of real estate development activities within a
bank holding company system, we would condition
approval of this application on a requirement that the
Applicant conduct its real estate activities within that
prudential framework. Accordingly, we do not agree
with the Board's decision to approve the application at
this time.
October 30, 1987

ORDERS ISSUED UNDER SECTION 4 OF THE
BANK HOLDING COMPANY ACT

First Interstate Bancorp
Los Angeles, California
Order Conditionally Approving Application to
Underwrite and Deal in Certain Securities to a
Limited Extent
First Interstate Bancorp, Los Angeles, California, a
bank holding company within the meaning of the Bank
Holding Company Act, 12 U.S.C. § 1841 et seq.
("BHC Act"), has applied for the Board's approval
under section 4(c)(8) of the BHC Act and section
225.21(a) of the Board's Regulation Y, 12 C.F.R.
§ 225.21(a), to engage through a wholly owned subsidiary, First Interstate Capital Markets, Inc. ("Company"), in underwriting and dealing in, on a limited
basis, the following securities:
(1) municipal revenue bonds, including certain industrial development bonds;



(2) 1-4 family mortgage-related securities; and
(3) commercial paper. 1
Company currently underwrites and deals in securities that state member banks are permitted to underwrite and deal in under section 16 of the Banking Act
of 1933 (the "Glass-Steagall Act") (12 U.S.C. §§ 24
Seventh and 335) (hereinafter "bank-eligible securities"), as permitted by section 225.25(b)(16) of Regulation Y (12 C.F.R. § 225.25(b)(16)).
Applicant, with consolidated assets of $51.8 billion,
is the ninth largest banking organization in the nation. 2
It operates 24 subsidiary banks in California, Oregon,
Arizona, Washington, Nevada, Utah, Idaho, Colorado, New Mexico, Montana, Oklahoma, and Alaska
and engages in a broad range of permissible nonbanking activities in the United States.
Notice of the application, affording interested parties an opportunity to submit comments, has been
given in accordance with section 3(b) of the BHC Act
(52 Federal Register 32,606 (1987)). The time for filing
comments has expired, and the Board has considered
the application and all comments received in light of
the factors set forth in section 3(c) of the BHC Act.
On April 30, the Board approved applications by
Citicorp, J.P. Morgan and Bankers Trust to underwrite and deal in, through their bank-eligible securities
underwriting subsidiaries, 1-4 family mortgagebacked securities, municipal revenue bonds (and certain industrial development bonds) and commercial
paper (hereinafter "bank-ineligible securities"). 3 The
Board concluded that the underwriting subsidiaries
would not be "engaged principally" in underwriting or
dealing in securities within the meaning of section 20
of the Glass-Steagall Act provided they derived no
more than 5 percent of their total gross revenues from
underwriting and dealing in the bank-ineligible securities over any two-year period and their underwriting
and dealing activities did not exceed 5 percent of the
market for each particular type of security involved. 4
The Board further found that, subject to the prudential
1. Applicant proposes to conduct Company's underwriting and
dealing activity in these securities in the same manner and to the same
extent as previously approved by the Board in its Orders approving
similar applications. See Citicorp, J.P. Morgan & Co.
Incorporated,
Bankers Trust New York Corporation, 73 FEDERAL RESERVE BULLETIN 4 7 3 ( 1 9 8 7 ) .

2. Asset data are as of June 30, 1987. Banking data are as of
December 31, 1986.
3. CiticorplMorganlBankers
Trust, supra. The Board subsequently
approved similar applications by a number of other bank holding
companies. See, e.g., Marine Midland Banks, Incorporated, 73 FEDERAL RESERVE B U L L E T I N 7 3 8 n . 3 ( 1 9 8 7 ) .

4. Section 20 of the Glass-Steagall Act (12 U.S.C. § 377) prohibits
the affiliation of a member bank with "any corporation . . . engaged
principally in the issue, flotation, underwriting, public sale, or distribution at wholesale or retail or through syndicate participation of
stocks, bonds, debentures, notes, or other securities . . . ."

Legal Developments

framework of limitations established in those cases to
address the potential for conflicts of interest, unsound
banking practices or other adverse effects, the proposed underwriting and dealing activities were so
closely related to banking as to be a proper incident
thereto within the meaning of section 4(c)(8) of the
BHC Act.
For the reasons set forth in the Board's Citicorp/
Morgan/Bankers Trust Order, the Board concludes
that Applicant's proposal to engage through Company
in underwriting and dealing in the proposed bankineligible securities 5 would not result in a violation of
section 20 of the Glass-Steagall Act and is closely
related and a proper incident to banking within the
meaning of section 4(c)(8) of the BHC Act, provided
Applicant limits Company's activities as set forth in
the CiticorplMorganlBankerslTrust
Order. Accordingly, the Board has determined to approve the application subject to all of the terms and conditions
established in the Citicorp/Morgan/Bankers Trust Order. The Board hereby adopts and incorporates herein
by reference the reasoning and analysis contained in
the Citicorp/Morgan/Bankers Trust Order.
The Board's approval of this application extends
only to activities conducted within the limitations of
the CiticorplMorganlBankers Trust Order, including
the Board's reservation of authority to establish additional limitations to ensure that the subsidiary's activities are consistent with safety and soundness, conflict
of interest and other relevant considerations under the
BHC Act. Underwriting or dealing in the approved
securities in any manner other than as approved in that
Order is not within the scope of the Board's approval
and is not authorized for Company.
The Board's determination is subject to all of the
conditions set forth in the Board's Regulation Y,
including those in sections 225.4(d) and 225.23(b), and
to the Board's authority to require modification or
termination of the activities of the holding company or
any of its subsidiaries as the Board finds necessary to
assure compliance with the provisions and purposes of
the BHC Act and the Board's regulations and orders
issued thereunder, or to prevent evasion thereof.
The Board notes that Title II of the Competitive
Equality Banking Act of 1987, enacted on August 10,
1987, prohibits the Board from authorizing a bank
holding company to engage in underwriting or dealing

5. The industrial development bonds approved in those applications and for Applicant in this case are only those tax exempt bonds in
which the governmental issuer, or the governmental unit on behalf of
which the bonds are issued, is the owner for federal income tax
purposes of the financed facility (such as airports, mass commuting
facilities, and water pollution control facilities). Without further
approval from the Board, Company may underwrite or deal in only
these types of industrial development bonds.




929

in securities under the "engaged principally" provision of the Glass-Steagall Act, unless the effective
date of the Order is delayed until the expiration of a
moratorium time period established under the Act. 6
Accordingly, the Board has determined to delay the
effective date of this Order until the moratorium ends
on March 1, 1988.
In addition, the Board notes that the SIA has sought
judicial review in the U.S. Court of Appeals for the
Second Circuit of the CiticorplMorganlBankers Trust
Order to which this Order pertains, as well as subsequent Board Orders approving the underwriting applications of a number of other bank holding companies.
The Board notes that the court has stayed the effectiveness of these Board Orders pending judicial review. In light of the pendency of this litigation, the
Board has determined that this Order should be stayed
for such time as the stay of the prior decisions is
effective.
By order of the Board of Governors, effective
October 7, 1987.
Voting for this action: Vice Chairman Johnson and Governors Seger, Heller, and Kelley. Voting against this action:
Governor Angell. Absent and not voting: Chairman Greenspan.
JAMES M C A F E E

[SEAL]

Associate Secretary of the Board

Dissenting Statement of Governor Angell
I regret I am unable to join the majority in approving
this application.
As I have stated previously, the regret reflects the
fact that, as a matter of policy, I support the idea that
affiliates of bank holding companies underwrite and
deal in commercial paper, municipal revenue bonds,
and 1-4 family mortgage-related securities, the activities involved in the Board's decision. 1 Moreover, I
agree generally with the nature of the limitations
placed upon the activities in the Board decision,
assuming the threshold question of their legality in the
particular form proposed can be answered affirmatively.
My point of difference involves precisely that question of law. Section 20 of the Glass-Steagall Act
provides that no member bank may be affiliated with

6. Pub. L. No. 100-86, §§ 201-02, 101 Stat. 552, 582 (1987).

1. I have joined earlier decisions of the Board authorizing some of
these activities in non-securities affiliates.

930

Federal Reserve Bulletin • December 1987

any corporation engaged principally in the underwriting of stocks, bonds, debentures, notes or other securities. I believe the plain words of the statute, read
together with earlier Supreme Court and circuit opinions, as I understand them, indicate that government
securities are indeed "securities" within the meaning
of section 20. Consequently, it appears to me that the
application approved here, as a matter of law, involves
affiliations of member banks with corporations that are
in fact not only "principally engaged" in dealing and
underwriting in securities, but in fact would be wholly
engaged in such activities, thereby exceeding the
authority of law. 2
My point is not merely one of legal formalisms. The
interpretation adopted by the majority would appear to
make feasible, as a matter of law if not Board policy,
the affiliations of banks with some of the principal
underwriting firms or investment houses of the country. Such a legal result, I feel, is inconsistent with the
intent of Congress in passing the Glass-Steagall Act.
As the Board as a whole has repeatedly urged, the
plain and desirable remedy to this legal and substantive morass is a fresh Congressional mandate. I urge
the Congress to provide straightforwardly the authority for bank holding companies to conduct, with appropriate safeguards, the kinds of activities permitted
by the Board in its decision, the practical import of
which is confined to a relative handful of large bank
holding companies with substantial government securities operations.
October 7, 1987

Manufacturers Hanover Corporation
New York, New York
Order Approving Application to Engage in
Combined Investment Advisory and Securities
Brokerage Activities
Manufacturers Hanover Corporation, New York,
New York, a bank holding company within the meaning of the Bank Holding Company Act ("BHC Act"),
has applied for the Board's approval under section
4(c)(8) of the BHC Act and section 225.21(a) of the
Board's Regulation Y, 12 C.F.R. § 225.21(a), to expand the authority of its wholly owned subsidiary,
Manufacturers Hanover Securities Corporation
("MHSC"), to include the activities of providing
investment advisory and research services to "Insti2. Without elaborating on the legal debate reviewed in the Board's
Order, I wish to reiterate that I fully support earlier Board decisions
allowing the underwriting and dealing of government securities to take
place in an affiliate. My point of disagreement is whether that authority
can, in effect, be used to bootstrap securities activities that Congress
clearly wished to restrain or prohibit.




tutional Customers," 1 and furnishing general economic information and advice, general economic statistical forecasting services and industry studies to
such customers. 2
MHSC presently engages in securities brokerage
services throughout the United States pursuant to
section 225.25(b)(15) of Regulation Y, 12 C.F.R.
§ 225.25(b)(15), and now proposes to combine investment advice with its brokerage services for institutional customers only. 3
Applicant, with total consolidated assets of $73.8
billion, is the sixth largest commercial banking organization in the nation. 4 It operates two subsidiary
banks in New York and Delaware and engages directly
and through other subsidiaries in a broad range of
nonbanking activities.
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been duly published (52 Federal Register
2,807 (1987)). The time for filing comments has expired, and the Board has considered the application
and all comments received, including comments op1. An Institutional Customer is defined by Applicant to be a person
that is:
(1) a bank (acting in an individual or fiduciary capacity); a savings
and loan association; an insurance company; a registered investment company under the Investment Company Act of 1940; or a
corporation, partnership, proprietorship, organization or institutional entity that regularly invests in the types of securities as to
which investment advice is given, or that regularly engages in
transactions in securities;
(2) an employee benefit plan with assets exceeding $1,000,000 or
whose investment decisions are made by a bank, insurance company or investment adviser registered under the Investment Advisers Act of 1940;
(3) a natural person whose individual net worth (or joint net worth
with his or her spouse) at the time of receipt of the investment
advice or brokerage services exceeds $1,000,000;
(4) a broker-dealer or option trader registered under the Securities
Exchange Act of 1934, or other securities professionals; or
(5) an entity all of the equity owners of which are Institutional
Customers.
2. MHSC will also provide its services to other subsidiaries of the
Applicant as permissible servicing activities under section 225.22 of
the Board's Regulation Y, 12 C.F.R. § 225.22.
3. In addition, MHSC underwrites and deals in securities that
national and state member banks are permitted to underwrite and deal
in under the Glass-Steagall Act, as permitted by section 225.25(b)(16)
of Regulation Y (12 C.F.R. § 225.25(b)(16)). MHSC also has previously received Board approval under section 4(c)(8) of the BHC Act to
underwrite and deal in, to a limited extent, certain municipal revenue
bonds (including "public ownership" industrial development bonds),
1-4 family mortgage-related securities, commercial paper and consumer-receivable-related securities, which are eligible for purchase by
member banks for their own account but not eligible for member
banks to underwrite and deal in ("ineligible securities"). MHSC may
not currently underwrite and deal in ineligible securities under the
terms of the judicial stay imposed by the U . S . Court of Appeals for the
Second Circuit pending its review of the Board's Order authorizing
MHSC to engage in that activity and the moratorium contained in the
Competitive Equality Banking Act of 1987. Pub. L. N o . 100-86,
§§ 201-02, 101 Stat. 552, 582 (1987). MHSC's brokerage services are
currently conducted separately from its securities underwriting and
dealing activities.
4. Banking data are as of June 30, 1987.

Legal Developments

posing the proposal from the Securities Industry Association ("SIA"), a national trade association of the
securities industry, in light of the public interest factors set forth in section 4(c)(8) of the BHC Act. 5
Section 4(c)(8) imposes a two-step test for determining the permissibility of nonbanking activities for bank
holding companies: (1) whether the activity is closely
related to banking; and (2) whether the activity is a
"proper incident" to banking—that is, whether the
proposed activity can reasonably be expected to produce benefits to the public that outweigh possible
adverse effects. 12 U.S.C. § 1843(c)(8).
The Board has previously determined that the combined offering of investment advice with securities
execution services to institutional customers from the
same bank holding company subsidiary is closely
related and a proper incident to banking under section
4(c)(8) of the BHC Act and does not violate the
Glass-Steagall Act. 6 National Westminister Bank
PLC,

et

at,

72

FEDERAL

RESERVE

BULLETIN

Applicant has however proposed several modifications to the conduct of the proposed activities as
approved in NatWest. These modifications are:
(1) Applicant proposes to lower the test for institutional customers from the $5 million threshold approved in NatWest to $1 million;8
(2) MHSC would share customer lists with its affiliates, but not confidential information obtained from
its customers; and
(3) MHSC would have officer and director interlocks
with the parent bank holding company, Manufacturers Hanover Corporation, but not with its bank
affiliates.
In the Board's view and for the reasons set forth
below, these modifications do not alter the underlying
rationale of the Board's decision in NatWest that the
combined activities are closely related to banking or a
proper incident thereto. 9

584

(1986) ("NatWest"); J.P. Morgan and Company, Inc.
73 FEDERAL RESERVE BULLETIN 810 (1987)

931

Definition of Institutional

Customer

("J.P.

Morgan").
As in NatWest, under this proposal, MHSC will not
act as principal or take a position (i.e., bear the
financial risk) in any securities it brokers or recommends. MHSC will execute a transaction only at the
direction of a customer and will not exercise discretion
with respect to any customer account. MHSC will not
execute any transaction where an affiliate exercises
investment discretion without customer authorization.
MHSC proposes to offer investment advice, as well as
to provide securities execution services, to institutional customers on an integrated basis, i.e., MHSC
will not charge an explicit fee for the investment
advice and will receive fees only for transactions
executed for customers. 7

5. The SIA has stated that it opposes the application for the reasons
stated in its earlier protest to a virtually identical proposal previously
approved by the Board. National Westminister Bank PLC, 72 FED-

Applicant proposes a $1 million threshold for its institutional customers who would be eligible to receive
the combined investment advisory and securities brokerage services. The applicants in NatWest proposed
a $5 million threshold for such institutional customers.
The Board in its NatWest Order viewed the institutional customers to be served as financially sophisticated and thus unlikely to place undue reliance on
investment advice received and better able to detect
investment advice motivated by self-interest.
Applicant notes that both it and its subsidiaries
generally employ a $1 million, rather than a $5 million,
threshold for high net worth individuals in connection
with their marketing of institutional services and
money market products. Moreover, Applicant contends that the proposed $1 million threshold is consistent with the definition of an "accredited investor"
contained in Regulation D promulgated by the SEC

ERAL RESERVE B U L L E T I N 5 8 4 ( 1 9 8 6 ) .

6. The SIA argues that the combination of investment advice and
buying and selling securities on behalf of customers constitutes the
"public sale" of securities under the Glass-Steagall Act. The SIA also
contends that the combination gives rise to the "subtle hazards" the
Glass-Steagall Act was meant to eliminate, such as damage to the
bank's reputation and its position as an impartial provider of credit.
For the reasons noted in NatWest, and on the basis of the facts
appearing in the record, the Board concludes that the combination of
investment advice and execution services as proposed here does not
constitute a "public sale" of securities for purposes of section 20 or 32
of the Glass-Steagall Act and that the proposal is consistent with the
intent of that Act. In this regard, the Board notes that the U.S. Court
of Appeals for the District of Columbia Circuit has recently upheld the
Board's similar determination in the virtually identical NatWest
proposal. Securities Industry Ass'n v. Board of Governors of the
Federal Reserve System, 821 F.2d 810 (D.C. Cir. 1987).
7. In line with NatWest, Applicant has also committed that MHSC
will fully disclose its dual role as securities broker and investment




advisor to its customers. MHSC will hold itself out as a separate and
distinct corporation with its own properties, assets, liabilities, capital,
books and records. All of MHSC's notices, advice, confirmations,
correspondence and other documentation will clearly indicate
MHSC's separate identity in order to avoid any confusion between
MHSC and its bank affiliates. MHSC will specify in all customer
agreements that MHSC is solely responsible for its contractual
obligations and commitments. The Board notes that MHSC must also
advise its customers that its bank affiliates are not responsible for
MHSC's obligations. MHSC will not transmit advisory research or
recommendations to the commercial lending department of any affiliate.
8. Applicant's definition of an institutional customer is otherwise
identical to that in NatWest and J.P. Morgan.
9. The Board hereby incorporates by reference its rationale and
findings in the NatWest and J.P. Morgan Orders regarding the
consistency of the proposed activity with the closely-related and
proper incident to banking criteria of section 4(c)(8).

932

Federal Reserve Bulletin • December 1987

under the Securities Act of 1933 regarding private
placements of securities. 10 The SEC views such investors as being of sufficient financial sophistication to
participate in limited offerings of securities without
being furnished the detailed disclosure documents
normally required in securities offerings by the Securities Act of 1933.
Applicant further notes that a $1 million threshold
would be consistent with the requirements of the SEC
rule promulgated under the Investment Advisers Act
of 1940 with respect to clients who may enter into
performance compensation arrangements. 11 In such
arrangements, the amount of the adviser's compensation is based on a share of the client's capital appreciation or gain. The SEC has limited such arrangements to clients who have at least $500,000 under an
adviser's management or with a net worth of over $1
million on the theory that such arrangements may lead
the adviser to take undue risks with clients' funds.
Consequently, only clients who are financially experienced and able to bear the risks associated with
performance fees are permitted to enter into such
arrangements. 12 Based on these factors, Applicant
submits that individuals with a net worth in excess of
$1 million can reasonably be considered as having the
sophistication and capacity to bear the risks that are
customarily identified with institutional investors.
For these reasons and based upon these facts of
record, the Board concludes that, while Applicant's
proposal to lower the minimum net worth threshold
would result in a substantial increase in the number of
qualified customers, those customers would be of
sufficient financial sophistication such that the proposal would not be materially different from that
approved by the Board in NatWest .
Sharing Customer Lists
Applicant has proposed that MHSC exchange customer lists with its affiliates limited to the names,
addresses and telephone numbers of such customers,

10. Regulation D defines an "accredited investor" as:
(1) any bank, insurance company, investment company or employee benefit plan;
(2) any business development company;
(3) any charitable or educational institution with assets of more than
$5 million;
(4) any director, executive officer or general partner of the issuer;
(5) any person who purchases at least $150,000 of the securities
being offered, provided the purchase does not exceed 20 percent of
his net worth;
(6) any person with a net worth of more than $1 million; and
(7) any person with an annual income of more than $200,000.
17 C.F.R. § 230.501(a)(6).
11. 17 C.F.R. § 275.205-3(b).
12. Investment Advisers Act of 1940 Release No. 1A 996 (November 14, 1985).




and would in no instance convey confidential customer
information. The Board in NatWest determined that
the commitment of the applicants therein not to exchange customer information, including customer
lists, between the full-service brokerage subsidiary
and its affiliates would reduce the possibility that
depositors of that subsidiary's bank affiliates might be
solicited by the brokerage subsidiary for their business. The commitment would thereby mitigate the
potential for loss of depositor confidence in the event
that such depositors are furnished with poor advice.
The commitment was also designed to reduce the
possibility that personnel at the brokerage subsidiary
would recommend the purchase of securities of a
company which borrows from an affiliated bank,
thereby indirectly benefitting the bank.
Applicant contends that the exchange of customer
lists will not adversely affect the confidence of depositors in Applicant's bank affiliates since MHSC and
Applicant's lead bank, Manufacturer Hanover Trust
Company ("MHTC"), solicit the same institutional
market. Consequently, many potential institutional
customers would be solicited by both MHTC and
MHSC, even without sharing customer lists. 13
In the Board's view, Applicant's more limited commitment should be sufficient to accomplish the Board's
objective of protecting the reputation of Applicant's
bank subsidiaries from the investment recommendations of the brokerage subsidiary. The customer lists
MHSC will receive from its affiliates will not indicate
whether the customers are depositors or borrowers of
its bank affiliates or include any information regarding
extensions of credit by any affiliate. In addition, the
fact that MHSC intends to provide investment advice
to institutional customers, who are likely to be financially sophisticated and thus able to appreciate the
distinction between a bank and its other affiliates in a
holding company, will safeguard against any loss of
depositor confidence in the event that such depositors
are furnished with poor advice by another affiliate
within the bank holding company organization. 14
The Board also notes the limited amount of customer information to be exchanged, which will not
include the relationship of the customer to the bank
affiliate or any details regarding that relationship.
Accordingly, the Board has determined to permit

13. In support of its position, Applicant notes that MHSC presently
maintains a customer list on which many of the customers of its bank
affiliates are listed.
14. Moreover, as the Board previously has stated, the potential for
loss of depositor confidence is present in every situation where a bank
affiliate (or the bank itself through its trust department) provides
investment advice. See, e.g., NatWest, 72 FEDERAL RESERVE BULLETIN a t 5 8 9 .

Legal Developments

Applicant to exchange customer lists with its affiliates,
subject to the limitations set forth herein.
Interlocks Between the Brokerage Subsidiary and the
Parent Bank Holding Company
Applicant has proposed to have interlocking officers
and directors between MHSC and its parent holding
company, Manufacturers Hanover Corporation. 15
In the recently decided underwriting cases, including Applicant's own proposal to underwrite and deal in
ineligible securities through MHSC, 16 the Board addressed the issue of whether a securities subsidiary of
a bank holding company may have officer, director or
employee interlocks with its parent holding company.
The Board determined that a prohibition against such
interlocks was unnecessary in those cases to guard
against conflicts of interest or other adverse effects,
given the absence of such relationships with bank
affiliates and the other limitations in those cases designed to separate the bank from the securities affiliates. Applicant has committed not to have officer,
director or employee interlocks between MHSC and
its bank affiliates. This commitment, in conjunction
with the other limitations contained in this Order, will,
in the Board's view, adequately guard against conflicts
of interest such as unsound lending practices or biased
investment advice.

CONCLUSION

Based upon the foregoing and other considerations
reflected in the record, the Board has determined that
the public benefits associated with consummation of
this proposal can reasonably be expected to outweigh
possible adverse effects, and that the balance of the
public interest factors that the Board is required to
consider under section 4(c)(8) of the BHC Act is
favorable. Accordingly, the application is hereby approved, subject to the commitments made by Applicant and the conditions (whether explicitly stated or

15. In NatWest and J.P. Morgan, the applicants committed not to
have interlocking officers or directors among the brokerage subsidiaries and their bank affiliates. In connection with this commitment, the
Board in NatWest recognized that, as a practical matter, a bank
cannot be completely insulated from the fortunes of a nonbank
subsidiary of its holding company, since the securities markets, the
general public and the holding company itself typically look upon the
bank and its affiliate as part of a consolidated organization. However,
the Board also recognized that conducting nonbanking activities in a
separate affiliate can to some extent prevent problems associated with
the nonbanking activity from afiFecting the bank. Applicant, of course,
has proposed interlocks between MHSC and parent holding company
only, and not with any of Applicant's bank subsidiaries.
16. Manufacturers Hanover Corporation, 73 FEDERAL RESERVE
BULLETIN 6 2 0 (1987).




933

incorporated by reference) in this Order. This determination is further subject to all of the conditions set
forth in the Board's Regulation Y, including those in
sections 225.4(d) and 225.23(b), and to the Board's
authority to require modification or termination of the
activities of the holding company or any of its subsidiaries as the Board finds necessary to assure compliance with the provisions and purposes of the BHC Act
and the Board's regulations and orders issued thereunder, or to prevent evasion thereof.
This transaction shall not be consummated later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board, or by the Federal Reserve Bank of New
York, pursuant to delegated authority.
By order of the Board of Governors, effective
October 1, 1987.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Heller, and Kelley.
JAMES M C A F E E

[SEAL]

Associate Secretary of the Board

MCorp
Dallas, Texas
MCorp Financial, Inc.
Wilmington, Delaware
Order Approving Acquisition of a Data Processing
Company
MCorp, Dallas, Texas, and its wholly owned subsidiary, MCorp Financial, Inc., Wilmington, Delaware,
bank holding companies within the meaning of the
Bank Holding Company Act ("BHC Act") (12 U.S.C.
§ 1841 et seq.) (collectively referred to as "Applicant"), have applied under section 4(c)(8) of the
BHC Act (12 U.S.C. § 1843(c)(8)) and section
225.25(b)(7) of the Board's Regulation Y (12 C.F.R.
§ 225.25(b)(7)) for Applicant's subsidiary MTech
Corp., Irving, Texas, to acquire Kalvar Corporation,
Minneapolis, Minnesota ("Company"), a company
engaged in data processing activities.
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been duly published (52 Federal Register
33,878 (1987)). The time for filing comments has expired, and the Board has considered the application
and all comments received in light of the public
interest factors set forth in section 4(c)(8) of the BHC
Act.
Applicant, through its subsidiary, MTech Corp.,
seeks to acquire 100 percent of Company and engage

934

Federal Reserve Bulletin • December 1987

in data processing and computer output to microfilm
("Com") services, 1 including offering enhanced Com
services to MTech's data processing customers and
providing optical storage capability on optical digital
disks and computer assisted retrieval for data stored
on microfilm and microfiche. Applicant also proposes
to sell certain equipment and supplies necessary to
utilize the processed microfiche or microfilm, including reading machines, scanners and paper, which, at
all times, would constitute less than 30 percent of any
packaged offering. 2
Applicant maintains that the foregoing activities are
permissible under section 4(c)(8) of the BHC Act and
the data processing provisions of section 225.25(b)(7)
of the Board's Regulation Y (12 C.F.R. 225.25(b)(7)).
Applicant's proposal meets the terms of the expanded
data processing activities of Regulation Y as revised
by the Board in 1982, because the data to be processed
or furnished are financial, banking or economic data
and the Com services qualify as data processing and
data transmission services as those terms are used in
the Board's data processing regulation. In addition,
Applicant's proposal to engage in the sale of equipment and supplies to Com customers 3 meets the requirements of section 225.25(b)(7)(iii).4
In evaluating this application, the Board has considered the financial and managerial resources of Applicant and its subsidiaries. The Board notes that the
acquisition will be made through MTech, Applicant's
data processing subsidiary, which is in satisfactory
financial condition. The proposed acquisition is considered relatively small and should enhance MTech's
earnings. Overall, financial and managerial factors are
consistent with approval.

1. Com services involve reading computer data from magnetic tape,
disk or diskette, and through the use of software, microcomputers and
recorders transferring the data to microfilm or microfiche.
2. Applicant also proposes to provide, as an incident to the above
services, a process involving the conversion of large volumes of
banking, financial and economic data from paper onto microfilm or
microfiche, pursuant to section 225.123(e)(1) and (e)(2) of the Board's
Regulation Y (12 C.F.R. § 225.123(e)(1) and (e)(2)). The Com services
equipment would not be purchased for the purposes of marketing this
incidental service, but rather would be the minimum equipment
needed to properly perform permissible Com services.
3. Applicant has not proposed to produce or manufacture such
equipment and supplies.
4. The Board notes that, in 1975, it determined that a bank holding
company could offer Com services as a permissible data processing
activity only if the Com services were offered as an output option for
data otherwise being permissibly processed by the bank holding
company system and not as a separate line of endeavor. 12 C.F.R.
§ 225.123(e)(4). The Com services of Company are materially different
from the type of Com services which were being performed in 1975
when the Board adopted its interpretation. In light of the technological
developments in the Com industry and the Board's expansion of the
permissible data processing activities of Regulation Y in 1982, the
Board intends to revoke its 1975 Com services interpretation.
12 C.F.R. § 225.123(e)(4).




In view of the facts of record, the Board concludes
that Applicant's acquisition of Company would not
significantly affect competition in any relevant market.
Furthermore, there is no evidence in the record to
indicate that approval of this proposal would result in
undue concentration of resources, unfair competition,
conflicts of interest, unsound banking practices, or
other adverse effects on the public interest. Accordingly, the Board has determined that the balance of the
public interest factors it must consider under section
4(c)(8) of the BHC Act is favorable and consistent with
approval of the application.
Based on the foregoing and other facts of record, the
Board has determined that the application under section 4 of the BHC Act should be, and hereby is,
approved. The acquisition shall not occur later than
three months after the effective date of this Order,
unless the latter period is extended for good cause by
the Board or by the Federal Reserve Bank of Dallas,
acting pursuant to delegated authority. Applicant's
acquisition of Company is subject to all of the conditions set forth in Regulation Y, including sections
225.4(d) and 225.23(b) (12 C.F.R. §§ 225.4(d) and
225.23(b)), 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 BHC Act and the
Board's regulations and orders issued thereunder, or
to prevent evasion thereof.
By order of the Board of Governors, effective
October 14, 1987.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, and Heller. Absent and not voting:
Governor Kelley.
JAMES M C A F E E

[SEAL]

Associate Secretary of the Board

Trustcorp, Inc.
Toledo, Ohio
Order Approving Application to Retain Shares of a
General Insurance Agency
Trustcorp, Inc., Toledo, Ohio, a registered bank holding company within the meaning of the Bank Holding
Company Act ("BHC Act") (12 U.S.C. § 1841
et seq.), has applied for the Board's approval under
section 4(c)(8)(D) of the BHC Act (12 U.S.C.
§ 1843(c)(8)(D)) and section 225.25(b)(8)(iv) of Regulation Y (12 C.F.R. § 225.25(b)(8)(iv)) to retain shares
of St. Joseph Insurance Agency, Inc., South Bend,
Indiana ("Agency"), a company that proposes to

Legal Developments

engage in general insurance agency activities in Indiana and adjacent states. These activities include all
types of credit and noncredit-related personal, commercial and casualty insurance, except life insurance.
Notice of this application, affording opportunity for
interested persons to submit comment, has been duly
published (51 Federal Register 31,665 (1987)). The
time for filing comments has expired, and the Board
has considered all comments received 1 in light of the
public interest factors set forth in section 4(c)(8) of the
BHC Act.
Applicant operates six subsidiary banks in Indiana
and is the 8th largest commercial banking organization
in that state. Applicant controls $945 million of deposits in Indiana representing 3.71 percent of the total
deposits in commercial banks in that state. Applicant
also owns banks in Ohio and Michigan, controlling
deposits representing 2.35 percent and 0.28 percent of
total deposits, respectively, in those states. 2 Applicant
engages through wholly-owned subsidiaries in various
nonbanking activities which the Board previously has
determined are permissible for bank holding companies.
Agency is a wholly owned subsidiary of St. Joseph
Bancorporation, Inc., South Bend, Indiana ("St.
Joseph"), which was acquired by Trustcorp in December 1986 pursuant to approval granted by the Federal
Reserve Bank of Cleveland. TrustCorp filed a separate
application seeking approval from the Board to retain
indirect control of Agency pursuant to section
4(c)(8)(G) of the BHC Act ("exemption G"). 3 The
Board denied that application on the grounds that a
company qualifying for exemption G rights may not
retain its grandfather status upon acquisition by another non-grandfathered bank holding company.
Trustcorp, Inc., 73 F E D E R A L R E S E R V E B U L L E T I N 827
(1987). The Board noted, however, that its determination was without prejudice to any claim that Agency
might have to more limited grandfather privileges
under exemption D. 4 Based on the unique legislative

1. The Board received comments in opposition to Applicant's
proposal from the Independent Insurance Agents of America, Inc.;
the National Association of Casualty and Surety Agents; the National
Association of Surety Bond Producers; the National Association of
Life Underwriters; and the National Association of Professional
Insurance Agents ("Protestants").
2. State deposit data are as of March 31, 1987.
3. Exemption G is the broadest exception to the insurance agency
and underwriting prohibitions of the Garn-St Germain Depository
Institutions Act ("Garn Act") in that it potentially allows a qualifying
company to sell any type of insurance anywhere in the country.
12 U.S.C. § 1843(c)(8)(G).
4. Exemption D of the Garn Act provides exception for "any
insurance activity which was engaged in by the bank holding company
or any of its subsidiaries on May 1, 1982." 12 U.S.C. § 1843(c)(8)(D).
Such activities may be conducted in the grandfathered company's
home state, states adjacent thereto or any state where the company




935

history and limited scope of that provision, the Board
previously has determined that exemption D rights do
not expire following the purchase of a grandfathered
company by another banking firm.5 Trustcorp thereafter submitted this application under section 4(c)(8)(D)
of the BHC Act for approval to retain Agency's
general insurance activities.
Trustcorp claims that Agency was engaged lawfully
in general insurance activities on May 1, 1982, the
grandfather date under exemption D, that Agency did
not thereafter abandon its insurance operations, and
that Agency therefore may retain its exemption D
rights after its acquisition by Trustcorp. Protestants
argue to the contrary that Agency forfeited its grandfather status in June 1982 when it sold substantially all
of its assets to another local insurance firm, and that
Agency consequently has no exemption D rights to
preserve.
Based on the record of this case, the Board believes
that Agency qualified for exemption D grandfather
rights on May 1, 1982 and did not thereafter abandon
its authorization under the BHC Act to conduct insurance agency activities. In accordance with Board
precedent, Agency may continue to conduct its general insurance operations in Indiana and adjacent
states following the proposed acquisition pursuant to
exemption D.
The record in this case shows that Agency qualified
initially for exemption D grandfather privileges.
Agency was established in 1914 and commenced operations selling homeowners and automobile insurance. In 1961, Agency received Board approval to
conduct a general insurance business, including all
types of credit and noncredit-related personal, commercial and casualty insurance (except life insurance).
47 F E D E R A L R E S E R V E B U L L E T I N 290 (1961). The
Board notes that Agency still was conducting these
activities throughout Indiana on May 1, 1982, and
therefore was engaged lawfully in insurance activities
on the applicable grandfather date.
In the years following, moreover, Agency effectively preserved its exemption D grandfather status.
Despite its sale of assets in June 1982, there is no
evidence in the record to suggest that Agency abandoned its authorization under the BHC Act to conduct

was authorized to operate an insurance business before the grandfather date.
On October 3, 1986, the Board amended Regulation Y to include the
insurance agency activities delineated in the seven exemptions to the
Garn Act among the list of activities that the Board has found to be
closely related to banking and permissible within the meaning of
section 4(c)(8) of the BHC Act. 51 Federal Register 36,201 (1986),
codified at 12 C.F.R. § 225.25(b)(8) (1987).
5 . MNC

Financial

7 4 0 ( 1 9 8 7 ) a n d Sovran
BULLETIN 6 7 2 (1987).

Corporation,
Financial

7 3 F E D E R A L RESERVE B U L L E T I N
Corporation,

7 3 F E D E R A L RESERVE

936

Federal Reserve Bulletin • December 1987

general insurance activities. On the contrary, in connection with this sale, Agency and the purchasing firm
entered a five-year referral/noncompetition agreement, the terms of which show that Agency fully
intended to preserve its insurance agency authority. In
essence, the agreement permitted Agency to continue
soliciting insurance business, but required it to refer all
customers to the other agency for a stated fee. During
this time, moreover, Agency maintained its status as a
corporation in good standing as well as its license to
conduct a general insurance agency business in Indiana. Agency also retained officers and directors,
rented office space, hired part-time consultants and
provided periodic financial reports.
On the basis of these facts, the Board concludes that
Agency qualifies for grandfather privileges under exemption D.
The Board previously has determined that any company entitled to engage in insurance agency activities
under exemption D does not lose those rights upon its
acquisition by another non-grandfathered banking
firm, provided that the grandfathered entity retains it
separate corporate structure and its insurance activities are not conducted by other companies within the
acquiring banking organization. 6 In keeping with this
precedent, the Board observes that upon its acquisition by Trustcorp, St. Joseph was retained as a separate bank holding company, and Agency as a separate
nonbank subsidiary thereof. As a consequence,
Agency's grandfathered insurance activities would be
wholly self-contained and isolated from the operations
of other Trustcorp subsidiaries. The Board, therefore,
concludes that Agency may retain its exemption D
grandfather privileges even after its purchase by another non-grandfathered banking firm.
Under the terms of section 4(c)(8)(D), however,
Agency may conduct grandfathered insurance activities only in St. Joseph's home state of Indiana, states
adjacent thereto, or states in which it lawfully engaged
in insurance activities on May 1, 1982. 12 U.S.C.
§ 1843(c)(8)(D). Because Agency has confined its
grandfathered insurance activities to the State of Indiana and has never received approval to conduct insurance operations in any other state, the Board notes
that Agency may continue to engage in general insurance activities only in Indiana and adjacent states.
In considering any application under section 4(c)(8)
of the BHC Act, the Board must determine whether
the proposed activity is a proper incident to banking;
that is, whether performance of the activity can reasonably be expected to produce benefits to the public

6 . Sovran

Financial

Corp.,

(1987).




7 3 FEDERAL RESERVE B U L L E T I N

672

that outweigh possible adverse effects. As a result of
Trustcorp's proposal, consumers in Indiana and adjacent states would benefit from ongoing access to
Agency as a source of insurance products and services. The continuation of grandfathered operations
by Agency thus would serve to maintain existing
business relationships and expectations, and also
would preserve Agency as a viable competitor in the
insurance agency industry. Conversely, there is no
evidence to suggest that Trustcorp's proposal would
result in undue concentration of resources, unfair or
decreased competition, conflicts of interest or other
adverse effects. The balance of public interest factors
therefore weighs in favor of Trustcorp's ability to
retain indirect control of a company such as Agency
that engages in exemption D grandfathered insurance
activities.
Based on the foregoing and other facts of record, the
Board has determined that the application under section 4 should be, and hereby is, approved. This determination is subject to all of the conditions set forth in
Regulation Y, and provided that the insurance activities are conducted solely by Agency, which must
remain an independent subsidiary of Trustcorp. It is
also subject to the Board's authority to require such
modifications or termination of activities of the bank
holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with, and
prevent evasions of, the provisions and purposes of
the BHC Act and the Board's regulations and orders
issued thereunder.
By order of the Board of Governors, effective
October 5, 1987.
Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, Heller, and Kelley. Absent and not
voting: Chairman Greenspan.
JAMES MCAFEE

[SEAL]

Associate Secretary of the Board

ORDERS ISSUED UNDER SECTIONS 3 AND 4 OF
THE BANK HOLDING COMPANY
ACT

One National Bancshares, Inc.
North Little Rock, Arkansas
Order Approving Formation of a Bank Holding
Company and Acquisition of a Nonbanking
Company
One National Bancshares, Inc., North Little Rock,
Arkansas, has applied for the Board's approval under
section 3(a)(1) of the Bank Holding Company Act of

Legal Developments

1956, as amended ("BHC Act") (12 U.S.C.
§ 1842(a)(1)), to become a bank holding company
through the consolidation of Hunt and Howell Bancshares, Inc., Fayetteville, Arkansas ("Hunt and
Howell"), and First American Bancshares, Inc.,
North Little Rock, Arkansas ("First American"), and
thereby to indirectly acquire the following bank subsidiaries: First National Bank of Fayetteville, Fayetteville, Arkansas; One National Bank of North Little
Rock, North Little Rock, Arkansas; One National
Bank of Little Rock, Little Rock, Arkansas; and One
National Bank of Hot Springs, Hot Springs, Arkansas.
Applicant has also applied under section 4(c)(8) of the
BHC Act (12 U.S.C. § 1843(c)(8)) and section
225.23(a)(2) of Regulation Y (12 C.F.R. § 225.23(a)(2))
to acquire First American's nonbanking subsidiary,
First American Life Insurance Company, North Little
Rock, Arkansas, and thereby engage in the issuance of
credit-related life and disability insurance. These activities have been previously determined by the Board
to be closely related to banking pursuant to section
4(c)(8)(A) of the BHC Act (12 U.S.C. § 1843(c)(8)(A))
and section 225.25(b)(8) of the Board's Regulation Y
(12 C.F.R. § 225.25(b)(8)).
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (52 Federal Register 29,066 (1987)). The
time for filing comments has expired, and the Board
has considered the application and all comments received, including comments submitted by the Little
Rock Community Reinvestment Alliance ("Protestant"), in light of the factors set forth in sections
3(c) and 4(c)(8) of the BHC Act.
Applicant is a nonoperating company with no subsidiaries, formed for the purpose of acquiring Hunt
and Howell and First American. Currently, Applicant,
Hunt and Howell, and First American are controlled
by the same individuals, with the proposed transactions representing a reorganization of existing ownership interests. The Hunt and Howell/First American
banking chain is the sixth largest commercial banking
organization in Arkansas, with total deposits of approximately $493.5 million, representing approximately 3.1 percent of total deposits in commercial
banks in the state. 1 Based on all the facts of record, the
Board believes that consummation of the proposal
would have no significantly adverse effect on the
concentration of banking resources in the state.
The Board has considered the effects of the proposal
upon competition in the relevant banking markets.
Hunt and Howell and First American do not operate in
the same banking market, and are controlled by the

1. Banking data are as of December 31, 1986.




937

same individuals.2 Based on the facts of this case,
consummation of this proposal would not result in any
adverse effect upon existing or future competition or
increase the concentration of banking resources in any
relevant banking market. Accordingly, the Board concludes that competitive factors are consistent with
approval.
The financial and managerial resources of Applicant
and the banks to be acquired are considered satisfactory and consistent with approval. In considering the
convenience and needs of the communities to be
served, the Board has also taken into account Applicant's record under the Community Reinvestment Act
(12 U.S.C. § 2901 et seq.) ("CRA"). The CRA requires the Board, in its evaluation of a bank holding
company application, to assess the record of an applicant in meeting the credit needs of the entire community, including low- and moderate-income neighborhoods, consistent with safe and sound operation. The
Board has received comments from Protestant, which
represents low-income and minority groups and individuals in Little Rock. Protestant contends that One
National Bank of North Little Rock ("Bank") has
failed to serve the convenience and needs of lowincome and minority persons in the Little Rock area. 3
The Board has carefully reviewed Bank's record in
meeting the convenience and needs of all segments of
its community. The Board notes that all of the banks to
be acquired by Applicant, including Bank, have received satisfactory CRA ratings at the most recent
examinations.
Applicant acquired control of First American and
Bank in October 1986, after the date of Bank's last
examination, and replaced the prior management of

2. The First National Bank of Fayetteville operates in the Fayetteville/Springdale banking market, which is approximated by Benton
and Washington Counties, Arkansas.
One National Bank of North Little Rock and One National Bank of
Little Rock operate in the Little Rock banking market, which is
approximated by Pulaski and Saline Counties, plus part of Lonoke
County, Arkansas. The Office of the Comptroller of the Currency
("OCC") has approved the merger of these two banks.
One National Bank of Hot Springs operates in the Garland County
banking market, which is approximated by Garland County, Arkansas.
3. Protestant asserts that the Board should not approve this application unless Bank provides below market financing and other favorable terms for mortgages and commercial loans for residents and
businesses in the low- and moderate- income areas; establishes a
Community Development Corporation to assist residents in the target
areas in meeting residential and community needs; markets homeimprovement and housing rehabilitation loans in designated areas;
establishes a CRA Advisory Board to review loan denials and withdrawals; increases advertising and marketing in targeted areas; provides loans to non-profit entities; and establishes lifeline services. As
part of the proposal, Protestant requests that Bank commit to provide
$9 million in loans, $600 thousand in lines of credit for organizations to
be designated by Protestant, and $130 thousand in grants or matching
funds to Protestant or its affiliates.

938

Federal Reserve Bulletin • December 1987

Bank. At that time, Bank was in less than satisfactory
financial condition. In the year since it gained control
of Bank, Applicant has devoted most of its resources
to improving the financial condition of Bank, and has
achieved significant improvement in the asset quality
and earnings of Bank. Applicant expects that the new
management, which has a satisfactory CRA record in
its other banks, will also improve the CRA performance of Bank. In this regard, Applicant has provided
the following commitments to the Board:
1. Creation of Mortgage Loan Department. Within
six months, Bank will open a full-service residential
mortgage lending department. The manager of this
department will develop a written plan to market
real estate loans throughout the delineated community, specifically addressing low- and moderateincome neighborhoods. Bank will solicit comments
from community leaders in low- and moderateincome areas of Little Rock and North Little Rock
in formulating its plan.
2. Lending. Consistent with safe and sound banking
practices, Bank will fund all FHA, VA and conventional real estate loans and small business loans in
low- and moderate-income areas that meet Bank's
underwriting standards.
3. Community Outreach Program. Within three
months, Bank will initiate a comprehensive community outreach program designed to educate the banking public in low- and moderate-income areas on
loan application preparation and loan terms and
availability, especially as these relate to subparagraphs (1) and (2) above.
4. Community Service Officer. A Community Service Officer will be designated by the president of
Bank. The Community Service Officer will be properly trained to manage the Community Outreach
Program within the three months allowed for its
establishment. The Community Service Officer will
serve as a point of contact for community groups,
and will monitor the Bank's CRA compliance as
well as the commitments contained herein and will
report directly to the president of Bank on CRArelated matters.
5. Responsiveness to the Community. In addition to
Bank's ongoing assessment of the credit needs of
the community as required by current regulations,
Bank will initiate quarterly meetings with community leaders from low- and moderate-income neighborhoods of Little Rock and North Little Rock, to
receive recommendations concerning the credit
needs of the delineated community, including lowand moderate-income neighborhoods.
In this regard, Applicant has committed to provide
the Reserve Bank with semi-annual reports concerning



Bank's progress in implementing its commitments to
the Board concerning Bank's CRA programs.
In accordance with the Board's practice and procedure for handling protested applications, 4 the Board
reviewed the allegations made by the Protestant and
Applicant's response. Bank has met privately with the
Protestant and has made a number of commitments
designed to tailor its services more closely to the
convenience and needs of its community.
The Board notes that this application involves a
restructuring of existing ownership interests for the
apparent purpose of enabling Applicant to further
expand its banking operations. Any such expansion
will require an application to the Board. At such time,
the Board will carefully scrutinize such an application
to determine whether Applicant has made substantial
measurable progress in fulfilling the commitments it
has made to the Board to improve its service to the
convenience and needs of its community.
Based on all the facts of record and after taking into
account Bank's commitments to enhance its service to
meet the convenience and needs of its community,
including low- and moderate-income segments, the
Board concludes that convenience and needs considerations are consistent with approval of this
application.5
As indicated earlier, Applicant also has applied,
pursuant to section 4(c)(8) of the BHC Act (12 U.S.C.
§ 1843(c)(8)) to engage in the issuance of credit life and
disability insurance through First American Life Insurance Company ("Company"). These activities
have been previously determined by the Board to be
closely related to banking pursuant to section
4(c)(8)(A) of the BHC Act (12 U.S.C. § 1843(c)(8)(A))
and section 225.25(b)(8) of the Board's Regulation Y
(12 C.F.R. § 225.25(b)(8)). Because Applicant does
not currently engage in this activity, the Board concludes that the proposal would not have any significant
adverse effect on existing or probable future competition in any relevant market.

4. See 12 C.F.R. § 262.25(c).
5. Protestant has also requested that the Board order a public
hearing to receive public testimony on the issues presented by the
application. Although section 3(b) of the BHC Act does not require a
public meeting or formal hearing in this instance, the Board may, in
any case, order a public meeting or formal hearing. See 12 C.F.R.
§ 262.3(e). The Board's Rules of Procedure also provide that a public
meeting may be held to clarify factual issues related to an application
or to provide an opportunity for interested persons to testify.
12 C.F.R. § 262.25(d). Protestant does not present any material
questions of fact that are in dispute. In accordance with the Board's
guidelines, Applicant and Protestant have met privately to discuss this
application and have exchanged extensive correspondence. Based on
these facts, the Board has determined that a public hearing or an
informal public meeting is not necessary to clarify the record in this
case and would serve no useful purpose. Accordingly, Protestant's
request for a public hearing or public meeting is hereby denied.

Legal Developments

There is no evidence in the record to indicate that
approval of this proposal would result in decreased
competition in other areas or in undue concentration
of resources, unfair competition, conflicts of interests,
unsound banking practices, and other adverse effects
on the public interest. Accordingly, the Board has
determined that the balance of public interest factors it
must consider under section 4(c)(8) of the BHC Act is
favorable and consistent with approval of the application.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved. The acquisition of banks in
this case shall not be consummated before the thirtieth
calendar day following the effective date of this Order,
and the entire transaction shall be consummated no
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 St.
Louis, acting pursuant to delegated authority. The
determination as to Applicant's nonbanking activities
are subject to all of the conditions contained in Regulation Y, including those in sections 225.4(d) and
225.3(b) (12 C.F.R. §§ 225.4(d) and 225.23(b)(3)), and
to the Board's authority to require such modification
or termination of the activities of a 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
October 26, 1987.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Heller, and Kelley.
JAMES M C A F E E

[SEAL]

Associate Secretary of the Board

Sovran Financial Corporation
Norfolk, Virginia

939

nessee; Commerce Union Bank/Clarksville, Clarksville, Tennessee; Commerce Union Bank/Eastern,
Oak Ridge, Tennessee; Commerce Union Bank/Greeneville, Greeneville, Tennessee; Commerce Union
Bank of Memphis, Memphis, Tennessee; Commerce
Union Bank/Tri-Cities, Johnson City, Tennessee;
Commerce Union Bank/Union City, Union City, Tennessee; Williamson County Bank, Franklin, Tennessee; First National Bank of Lewisburg, Lewisburg,
Tennessee; and Planters Bank and Trust Company,
Hopkinsville, Kentucky. 1 Applicant also has applied
for the Board's approval under section 4(c)(8) of the
Act (12 U.S.C. § 1843(c)(8)) to acquire Commerce
Union Realty Services, Inc., Nashville, Tennessee,
and thereby engage in brokering commercial loans,
and Tennessee Valley Life Insurance Company, Nashville, Tennessee, and thereby engage in reinsuring
credit life, accident, and health insurance directly
related to extensions of credit by the subsidiary banks
of Company. These activities are authorized for bank
holding companies pursuant to the Board's Regulation
Y, 12 C.F.R. §§ 225.25(b)(1) and (8). Finally, Applicant has provided notice to the Board under section
4(c)(14) of the Act of its intention to acquire Commerce Trading Corporation, Nashville, Tennessee, an
export trading company.
Notice of the applications, affording opportunity for
interested persons to submit comments, has been
published (52 Federal Register 27,724, 32,054 (1987)).
The time for filing comments has expired, and the
Board has considered the applications and all comments received in light of the factors set forth in
sections 3(c) and 4(c)(8) of the Act.
Applicant is the largest commercial banking organization in Virginia with domestic deposits of approximately $8.3 billion,2 representing approximately 20.4
percent of the total deposits in commercial banks in
Virginia.3 Company is the 4th largest commercial
banking organization in Tennessee with domestic deposits of approximately $3.1 billion,4 representing
approximately 9.7 percent of the total deposits in
commercial banks in Tennessee.

Order Approving Acquisition of a Bank Holding
Company and a Bank
Sovran Financial Corporation, Norfolk, Virginia
("Applicant"), a bank holding company within the
meaning of the Bank Holding Company Act
(12 U.S.C. § 1841 et seq.) (the "Act"), has applied for
the Board's approval under section 3 of the Act
(12 U.S.C. § 1842) to acquire Commerce Union Corporation, Nashville, Tennessee ("Company"), and
thereby indirectly to acquire its subsidiary banks:
Commerce Union Bank, Nashville, Tennessee; Commerce Union Bank/Chattanooga, Chattanooga, Ten


1. In connection with this application, both Applicant and Company have applied for the Board's approval under section 3 of the Act
to acquire Security Bank and Trust Company, Centerville, Tennessee
("Bank"). In order to effectuate the acquisition as a non-taxable
reorganization, Company will acquire Bank after the consummation of
Applicant's acquisition of Company.
2. State data are as of December 31, 1986.
3. Applicant also controls deposits of approximately $3.2 billion in
the District of Columbia, Maryland, and Delaware.
4. Company also controls approximately $161.9 million in deposits
in a subsidiary bank in Kentucky, representing approximately less
than one percent of the total deposits in commercial banks in
Kentucky.

940

Federal Reserve Bulletin • December 1987

Section 3(d) of the Act, 12 U.S.C. § 1842(d), the
Douglas Amendment, prohibits the Board from approving an application by a bank holding company to
acquire a bank located outside the bank holding company's home state, unless such acquisition is "specifically authorized by the statute laws of the state in
which such bank is located, by language to that effect
and not merely by implication." 5 In this case, Company controls banks in two states: Tennessee and
Kentucky. The Tennessee Regional Reciprocal Banking Act (the "Tennessee Act") authorizes a "regional
bank holding company" to acquire a Tennessee bank
or bank holding company under certain conditions. 6 A
"regional bank holding company" is defined by the
Tennessee Act as a bank holding company that has its
principal place of business in a state within a specified
region, and that controls banks within the region that
account for more than 80 percent of the total deposits
held by all of its bank subsidiaries (the "80 percent
deposit test"). Applicant is a bank holding company
with its principal place of business in Virginia, a state
within the Tennessee Act's region. Applicant, however, does not meet the 80 percent deposit test until
after the proposed acquisition.
Tennessee's Commissioner of Financial Institutions
has issued an interpretation of the Tennessee Act
which states that the 80 percent deposit test is to be
applied as of the moment the acquisition is consumated, rather than immediately prior to the acquisition.
Further, the Tennessee Commissioner has informed
the Board that Applicant's proposals to acquire Company and Bank are permissible under the Tennessee
Act, and accordingly, the Commissioner has no objection to the proposals.
Kentucky law authorizes a bank holding company
having its principal place of business in any state to
acquire a Kentucky bank if that state allows a Kentucky bank holding company to acquire a bank in that
state. 7 The Kentucky Commissioner of Banking has
informed the Board that Applicant's proposal to acquire Planters Bank and Trust Company, Hopkinsville, Kentucky, appears permissible under Kentucky
law, and accordingly, the Kentucky Commissioner has
no objection to the proposal. Based on the foregoing
factors and its own review of the record, the Board has

5. A bank holding company's home state for purposes of the
Douglas Amendment is that state in which the total deposits of its
banking subsidiaries were largest on July 1, 1966, or on the date it
became a bank holding company, whichever date is later. 12 U.S.C.
§ 1842.
6. Tenn. Code Ann. § 45-12-101 et seq. (1986). See, e.g., Dominion
Bancshares (Nashville City Bank and Trust Company), 72 FEDERAL
RESERVE BULLETIN 847 (1986) (approved by the Federal Reserve
Bank of Richmond acting pursuant to authority delegated by the
Board).
7. Ky. Rev. Stat. § 287.900(6) (Michie/Bobbs - Merrill 1986).




determined that the proposed interstate acquisitions
are specifically authorized by the statute laws of
Tennessee and Kentucky and thus Board approval is
not prohibited by the Douglas Amendment.
The Board has considered the effects of the proposal
upon competition in the relevant banking markets.
Applicant and Company compete in the Bristol-Kingsport market. 8 Applicant is the fifth largest commercial
banking organization in the market with deposits of
approximately $108.1 million, representing approximately 9.6 percent of the total deposits in commercial
banking, organizations in the market. 9 Company is the
eighth largest commercial banking organization in the
market with deposits of approximately $52.0 million,
representing approximately 4.6 percent of total deposits in commercial banking organizations in the market.
Upon consummation of Applicant's acquisition of
Company, Applicant will become the second largest
commercial banking organization in the market with
deposits of approximately $160.1 million, representing
approximately 14.3 percent of the total deposits in
commercial banking organizations in the market. The
Herfindahl-Hirschman Index would increase by 89
points to 1622, remaining moderately concentrated. In
view of the market shares involved and the small
increase in concentration in the market, consummation of Applicant's acquisition of Company would not
have a substantial adverse effect in the Bristol-Kingsport market. 10
The Board also has considered the effects of the
proposed acquisition on probable future competition
in markets in which Applicant and Company do not
compete. In view of the number of probable future
entrants into those markets, the Board concludes that
consummation of this proposal would not have a
significant adverse effect on probable future competition in any relevant banking market.
The financial and managerial resources of Applicant, Company, and Bank are satisfactory. In considering the convenience and needs of the communities to
be served, the Board has taken into account the
records of Applicant and Company under the Community Reinvestment Act ("CRA"), 12 U.S.C. § 2901
et seq.11 The Board has received comments from an

8. The Bristol-Kingsport market is approximated by the Bristol,
Virginia RMA and the Kingsport, Tennessee RMA.
9. Market data are as of June 30, 1986.
10. Because Applicant and Company do not operate a banking
subsidiary in any market in which Bank operates, consummation of
Applicant and Company's acquisition of Bank would not eliminate
significant existing competition in any relevant banking market.
11. The CRA requires the Board, in its evaluation of a bank holding
company application, to assess the record of an applicant in meeting
the credit needs of the entire community, including the low- and
moderate-income neighborhoods, consistent with safe and sound
operation.

Legal Developments

individual regarding the record of one of Applicant's
subsidiary banks. In an attempt to resolve the concerns raised by the protest, representatives of the bank
involved have met and are continuing to meet with the
individual regarding the matter raised by the protest.
Applicant also has taken steps to increase the awareness of the CRA of the officers of the bank, and will
follow this with continuing officer training programs.
The Board has reviewed the record of Applicant in
serving the credit and deposit needs of the communities to be served. The Board notes that the Office of
the Comptroller of the Currency ("OCC") has expressed certain concerns regarding the CRA record of
Applicant's lead bank, Sovran Bank, N.A., Richmond, Virginia. In response, the bank has submitted a
plan to the OCC describing specific corrective actions
to be taken to strengthen its performance, and has
provided the OCC with an update on the bank's CRA
activity designed to better document current performance. The OCC has indicated that it is satisfied with
the bank's response. Further, the primary regulators
of Applicant's remaining bank subsidiaries and of
Company and its subsidiaries have determined that the
CRA performance of these institutions is satisfactory
or better. Based on the foregoing factors and all the
facts of record, the Board concludes that convenience
and needs considerations are consistent with approval.
As indicated earlier, Applicant also has applied,
pursuant to section 4(c)(8), to acquire certain nonbanking subsidiaries of Company. Applicant operates
subsidiaries which originate residential first mortgage
loans that compete with Company's subsidiaries in
such activity in the Nashville market. 12 In view of the
numerous existing and potential competitors in the
market and de minimis market shares involved, the
Board concludes that the proposal would not have any
significant adverse effect on existing or probable future
competition in this market.
There is no evidence in the record to indicate that
approval of this proposal would result in decreased
competition in any other market or undue concentration of resources, unfair competition, conflicts of
interests, unsound banking practices, or other adverse
effects on the public interest. Accordingly, the Board
has determined that the balance of public interest
factors it must consider under section 4(c)(8) of the
Act is favorable and consistent with approval of the
applications to acquire Company's nonbanking subsidiaries and activities.
The Board also has considered the notice of Applicant's proposed investment in Commerce Trading
12. The Nashville market is approximated by the counties of
Davidson, Rutherford, Williamson, and Wilson, and the southern half
of the counties of Robertson and Sumner, all in Tennessee.




941

Corporation under section 4(c)(14) of the Act. Based
on the facts of record, the Board has determined that
disapproval of the proposed investment is not warranted.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved. The acquisitions shall not
be consummated before the thirtieth calendar day
following the effective date of this Order, or later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Richmond,
acting pursuant to delegated authority. The determinations as to Applicant's nonbanking activities are
subject to all of the conditions contained in Regulation
Y, including those in sections 225.4(d) and 225.23(bX3)
(12 C.F.R. §§ 225.4(d) and 225.23(b)(3)), and to the
Board's authority to require such modification or
termination of the activities of a 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
October 1, 1987.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Heller, and Kelley.
JAMES MCAFEE

[SEAL]

Associate Secretary of the Board

U.S. Bancorp
Portland, Oregon
Order Approving Acquisition of a Bank Holding
Company
U.S. Bancorp, Portland, Oregon, a bank holding company within the meaning of the Bank Holding Company Act (12 U.S.C. § 1841 et seq.) (the "Act"), has
applied for the Board's approval under section 3 of the
Act (12 U.S.C. § 1842) to acquire Peoples Ban Corporation, Seattle, Washington ("Peoples"), and thereby
indirectly to acquire its subsidiary bank, Peoples National Bank of Washington, Seattle, Washington.
Applicant also has applied under section 4(c)(8)
of the Act (12 U.S.C. § 1843(c)(8)) and section
225.23(a)(2) of Regulation Y (12 C.F.R. § 225.23(a)(2))
to acquire the nonbanking subsidiaries of Peoples.
These subsidiaries include the following: Peoples Discount Brokerage Company, Seattle, Washington, and
thereby engage in discount brokerage activities; Peoples Insurance, Inc., Seattle, Washington, and thereby
engage in the sale of property, casualty, and credit life

942

Federal Reserve Bulletin • December 1987

and disability insurance by the bank holding company;
Peoples Services Corporation, Seattle, Washington,
and thereby engage in escrow company activities; and
Peoples Computer Services, Inc., Seattle, Washington, and thereby engage in data processing activities.
These activities are authorized for bank holding companies pursuant to the Board's Regulation Y,
12 C.F.R. §§ 225.25(b)(3), (7), (8)(iv) and (15).
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (52 Federal Register 24,343 (1987)). The
time for filing comments has expired, and the Board
has considered the applications and all comments
received in light of the factors set forth in sections 3(c)
and 4(c)(8) of the Act.
Section 3(d) of the Act, 12 U.S.C. § 1842(d), the
Douglas Amendment, prohibits the Board from approving an application by a bank holding company to
acquire a bank located outside of the bank holding
company's home state, unless the acquisition is "specifically authorized by the statute laws of the state in
which such bank is located, by language to that effect
and not merely by implication." 1 Applicant's home
state is Oregon. The Board has previously determined
that Washington's interstate banking statute expressly
authorizes an Oregon bank holding company, such as
Applicant, to acquire a Washington bank holding
company, such as Peoples. Accordingly, approval of
Applicant's proposal to acquire Peoples is not barred
by the Douglas Amendment.
Applicant is the largest commercial banking organization in Oregon, with deposits in Oregon of approximately $5.7 billion, representing approximately 39.5
percent of the total deposits in commercial banks in
that state. 2 Applicant is also the sixth largest commercial banking organization in Washington, controlling
deposits of $1.5 billion, representing 6.0 percent of
commercial bank deposits in the state. Peoples is the
fourth largest banking organization in Washington
with deposits of $2.1 billion, representing 8.2 percent
of the deposits in commercial banks in the state.
Upon consummation of the proposed transaction,
Applicant will become the third largest banking organization in Washington, with total deposits of $3.6
billion, representing approximately 14.2 percent of
total deposits in commercial banks in the state. Consummation of this proposal would not have any signif-

1. A bank holding company's home state for purposes of the
Douglas Amendment is that state in which the total deposits of its
banking subsidiaries were largest on July 1, 1966, or on the date it
became a bank holding company, whichever date is later. 12 U.S.C.
§ 1842(d).
2. State banking data are as of December 31, 1986. Local banking
data are as of June 30, 1985, unless otherwise noted.




icant adverse effect on the concentration of banking
resources in Washington.
Applicant and Peoples compete directly in the Seattle, Portland, Yakima, Tri-Cities and Moses LakeOthello banking markets. In the Seattle 3 and Portland 4
markets, consummation of the proposal would result
in an increase of less than 50 points in the HerfindahlHirschman Index ("HHI") and numerous competitors
would remain in each market. 5 Accordingly, consummation of the proposal would not have a significant
effect on competition in either market.
In the Tri-Cities banking market, 6 Applicant is the
third largest of seven commercial banking organizations, controlling $86 million in deposits, which represents 16.9 percent of total deposits in commercial
banks in the market. Peoples is the fourth largest
commercial banking organization in the market, controlling $78 million in deposits, which represents 15.0
percent of total deposits in commercial banks in that
market. The Tri-Cities banking market is highly concentrated with the four largest commercial banks
controlling 87.8 percent of deposits in that market.
Following acquisition of Peoples, Applicant would
become the largest commercial banking organization
in the market, controlling 31.9 percent of the deposits
in commercial banks in the market. The four-firm
concentration ratio would increase by 4.5 percentage
points to 92.3 and the HHI for the market would
increase by 508 points to 2777.
In the Yakima County banking market, 7 Applicant is
the fifth largest of eight commercial banking organizations, controlling $48 million in deposits, which represents 6.6 percent of the deposits in commercial banks
in the market. Peoples is the third largest commercial
banking organization in the market, controlling $136
million in deposits, which represents 18.6 percent of
total deposits in commercial banks in the market. The
Yakima County market is concentrated with a four-

3. The Seattle banking market is approximated by the SeattleTacoma-Everett RMA.
4. The Portland banking market is approximated by the Portland
RMA.
5. Under the revised Department of Justice Merger Guidelines (49
Federal Register 26,823) a market in which the post-merger HHI is
over 1800 is considered concentrated. In such markets, the Department is likely to challenge a merger that increases the HHI by more
than 50 points. The Department has informed the Board that a bank
merger or acquisition generally will not be challenged (in the absence
of other factors indicating anticompetitive effects) unless the postmerger HHI is at least 1800 and the merger increases the HHI by at
least 200 points. The Justice Department has stated that the higher
than normal HHI thresholds for screening bank mergers for anticompetitive effects implicitly recognizes the competitive effect of limited
purpose lenders and other non-depository financial entities.
6. The Tri-Cities banking market is approximated by the PascoKennewick-Richland RMA.
7. The Yakima banking market is approximated by Yakima
County, Washington.

Legal Developments

firm concentration ratio of 81.6 percent. Upon consummation of this proposal, Applicant would become
the second largest commercial banking organization in
the market, controlling $184 million in deposits, representing 25.2 percent of the market share. The fourfirm concentration ratio in the market would increase
to 88.2 percent, and the HHI would increase by 246
points to 2047.
In the Moses Lake-Othello banking market, 8 Applicant is the smallest of the six commercial banking
organizations in the market, with total deposits of
$15.2 million, representing 5.8 percent of the deposits
in commercial banks in the market. 9 Company is the
largest commercial banking organization in the market, with deposits of $81.2 million, representing 31.2
percent of the deposits in commercial banks in the
market. After consummation of the proposal, Applicant's share of the deposits in commercial banks in the
market would be 37.0 percent. The Moses LakeOthello banking market is considered highly concentrated with a four-firm concentration ratio of 86.9
percent which, upon consummation, would increase to
92.7 percent. The HHI would increase by 363 points to
2511.
Although consummation of this proposal would
eliminate some existing competition between Applicant and Peoples in the Yakima County, Tri-Cities and
Moses Lake-Othello banking markets, numerous other
commercial banking organizations would continue to
operate in each market after consummation of the
proposal. In addition, the Board has considered the
presence of thrift institutions in these banking markets
in its analysis of this proposal. These institutions
account for a significant percentage of the total deposits in each of the markets. The Board previously has
indicated that thrift institutions have become, or have
the potential to become, major competitors of commercial banks. 10 Thrift institutions already exert a
considerable competitive influence in the market as
providers of NOW accounts and consumer loans, and
many are engaged in the business of making commercial loans. Based upon the number, size, market
shares and commercial lending activities of thrift institutions in their markets, the Board has concluded that
thrift institutions exert a significant competitive influ-

8. The Moses Lake-Othello banking market is approximated by
southern Grant County, Washington, and the city of Othello in Adams
County, Washington.
9. Data for the Moses Lake-Othello banking market are as of June
30, 1986.

10. National

City Corporation,

7 4 3 ( 1 9 8 4 ) ; The Chase

Manhattan

B U L L E T I N 5 2 9 ( 1 9 8 4 ) ; NCNB
B U L L E T I N 2 2 5 ( 1 9 8 4 ) ; General
RESERVE

BULLETIN

802

70 FEDERAL RESERVE BULLETIN
Corporation,

Bancorporation,
Bancshares

(1983);

First

Corporation,
Tennessee

F E D E R A L RESERVE B U L L E T I N 2 9 8 ( 1 9 8 3 ) .




7 0 F E D E R A L RESERVE
7 0 F E D E R A L RESERVE
6 9 FEDERAL
Corporation,

69

943

ence that mitigates the anticompetitive effects of this
proposal in the Yakima, Tri-Cities and Moses LakeOthello banking markets. 11
On the basis of the above facts and other facts of
record, the Board concludes that consummation of
Applicant's proposal would not have a significantly
adverse effect on existing competition in any relevant
market.
The financial and managerial resources of Applicant
and Peoples as well as their bank subsidiaries are
consistent with approval.
In considering the convenience and needs of the
communities to be served, the Board has taken into
account the records of the subsidiary banks of Applicant and Peoples under the Community Reinvestment
Act ("CRA"), 12 U.S.C. § 2901 et seq.12 The Board
has received comments regarding the CRA record of
Peoples National Bank of Washington ("PNB") from
the South End Seattle Community Organization
("SESCO") and the Yakima County Community Reinvestment Committee ("Yakima Committee"). The
protestants generally allege PNB has failed to meet the
credit needs of the low- and moderate-income areas of
Seattle and Yakima. In addition, one of the protestants
alleges that PNB does not meet the credit needs of
minority areas in the community it serves. Further, the
protestants allege that PNB is not making special
efforts, such as communication, marketing, or special
programs, to ascertain or to meet the credit needs of
its community.
In accordance with the Board's practice and procedures for handling protested applications, 13 the Board
reviewed the protestants' allegations and Applicant's
response to the allegations. In an attempt to resolve
the concerns raised by the protests, Applicant and
PNB have met with SESCO and the Yakima Committee on several occasions to discuss the issues raised by

11. The following data indicate the market share and the change in
the HHI if 50 percent of the deposits controlled by thrift institutions
were included in the calculation of market concentration:
In the Yakima County market, Applicant and Peoples would control
5.0 percent and 14.1 percent of total market deposits, respectively.
The HHI would increase by 140 points to 1329 upon consummation of
the proposal.
In the Tri-Cities banking market, Applicant and Peoples would
control 12.4 percent and 11.3 percent of total market deposits,
respectively. The HHI would increase by 280 points to 1662 upon
consummation of the proposal.
In the Moses Lake-Othello banking market, Applicant and Peoples
would control 5.0 percent and 26.9 percent of total market deposits,
respectively. The HHI would increase by 269 points to 1930 upon
consummation of the proposal.
12. The CRA requires the Board, in its evaluation of a bank holding
company application, to take into account the record of the applicant's subsidiary banks in meeting the credit needs of the entire
community, including the low- and moderate-income neighborhoods,
as reflected in the examinations by the bank's primary federal banking
regulator. 12 U.S.C. § 2903.
13. See 12 C.F.R. § 262.25(c).

944

Federal Reserve Bulletin • December 1987

the protestants. The parties, however, were unable to
come to a resolution of their differences.
Initially, the Board notes that PNB as well as
Applicant's subsidiary banks have received satisfactory CRA assessments from their primary supervisory
agencies. Furthermore, Applicant has adopted an extensive plan to enhance PNB's service to its communities. Applicant has indicated that it will adopt the
following measures:
1. PNB will conduct educational seminars in the
South End community of Seattle, to provide residents with financial counseling regarding residential
loans and small business loans, as well as promotional campaigns, to market its products, including
the use of price incentives;
2. PNB will continue to meet with community
organizations, including SESCO, to review community needs and determine appropriate courses of
action; and
3. PNB has established goals to increase residential
real estate and small business loans in the South End
community of Seattle.
Applicant has adopted a CRA plan for the Yakima
area similar to that adopted for South End:
1. PNB will increase its marketing efforts in all
segments of the Yakima market and has pledged to
continue to meet with the Yakima Committee and
other members of the community to ascertain community banking needs;
2. PNB has committed to render financial assistance
to the City of Yakima Multi-Family Rehabilitation
Program;
3. PNB will consider "sweat equity," i.e., an individual's home improvement efforts, as part of an
owner's equity contribution to the purchase of an
owner-occupied single-family residence for low- and
moderate-income households; and
4. PNB has established goals to increase residential
real estate and small business loans in Yakima
community and will continue to participate in federal, state and local programs aimed at increasing
the accessibility of credit to new or undercapitalized
small businesses.
Based on Applicant's commitments and the overall
satisfactory CRA record of PNB as well as of Applicant's existing subsidiary banks, the Board concludes
that convenience and needs considerations in this case
are consistent with approval of the applications. 14

14. The protestants requested that the Board order a public meeting. Under the Board's rules, the Board may hold a public meeting on
an application to clarify factual issues related to the application and to
provide an opportunity for testimony, if appropriate. 12 U.S.C.




As indicated above, Applicant also has applied,
pursuant to section 4(c)(8), to acquire certain nonbanking subsidiaries of Peoples. Applicant currently
operates nonbanking subsidiaries that offer services
similar to those services offered by Peoples. In view of
the small market shares of Applicant and Peoples in
those geographic areas in which they compete for
these services and the large number of competitors for
these services, the Board concludes that the proposal
would not have any significant adverse effect on
existing or probable future competition in any relevant
market.
There is no evidence in the record to indicate that
approval of this proposal would result in decreased
competition, undue concentration of resources, unfair
competition, conflicts of interests, unsound banking
practices, or other adverse effects on the public interest. Accordingly, the Board has determined that the
balance of public interest factors it must consider
under section 4(c)(8) of the Act is favorable and
consistent with approval of the applications to acquire
Peoples' nonbanking subsidiaries and activities.
Applicant has requested the Board's authorization
to retain the insurance agency activities of Peoples'
wholly owned subsidiary, Peoples Insurance, Inc.,
which currently engages in the sale of property, casualty, and credit life and disability insurance pursuant
to exemption D of the Garn-St. Germain Depository
Institutions Act of 1982 (the "Garn Act"). 1 5 Exemption D of the Garn Act permits a bank holding company to engage in "any insurance activity which was
engaged in by the bank holding company or any of its
subsidiaries on May 1, 1982."
On November 25, 1981, Peoples obtained approval
for Peoples Insurance, Inc., to engage in the sale of
property, casualty and credit life and disability insurance and was engaged in those activities on the grandfathered date, under its former name "Western States
Agencies, Inc." Accordingly, Peoples Insurance, Inc.,
is entitled to continue to sell insurance under exemption D.
The Board has previously determined in Sovran
Financial

Corporation,

73 FEDERAL RESERVE BULLE-

TIN 672 (1987), that an insurance agency which is
entitled to continue to sell insurance under exemption
D does not lose its grandfathered rights if the agency is
§ 262.25(d). In this case, the Federal Reserve Bank of San Francisco
has arranged private meetings for this purpose. Moreover, Applicant
and the protestants have exchanged extensive correspondences.
Based on this and on the other facts of record, the Board has
determined that a public meeting would serve no useful purpose.
Accordingly, the requests for public meetings are denied.
15. 12 U.S.C. § 1843(c)(8)(D). Such activities may be conducted in
the grandfathered company's home state, states adjacent thereto or
any state where the company was authorized to operate an insurance
business before the grandfather date.

Legal Developments

acquired by another bank holding company provided
the agency maintains its separate corporate structure
and its insurance activities are not extended to other
subsidiaries within the acquiror's banking organization. Applicant has committed that Peoples Insurance,
Inc., will remain a separate subsidiary of Peoples,
which will remain a separate bank holding company,
and its insurance activities will not be conducted by
any of Applicant's subsidiaries. Accordingly, the
Board has determined to permit Peoples Insurance,
Inc., to continue to engage in insurance activities
following its acquisition by Applicant. 16
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved. The acquisition of Peoples
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

16. Pursuant to exemption D, Peoples Insurance, Inc., may sell
insurance only in the home state of Peoples under the Douglas
Amendment, and states adjacent to Washington.

ORDERS APPROVED

UNDER BANK HOLDING

945

Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of San
Francisco, acting pursuant to delegated authority. The
determinations as to Applicant's nonbanking activities
are subject to all of the conditions contained in Regulation Y, including those in sections 225.4(d) and
225.23(b)(3) (12 C.F.R. §§ 225.4(d) and 225.23(b)(3)),
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
October 20, 1987.
Voting for this action: Chairman Greenspan and Governors
Seger, Angell, Heller, and Kelley. Absent and not voting:
Governor Johnson.
JAMES MCAFEE

[SEAL]

COMPANY

Associate Secretary of the Board

ACT

By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon
request to the Reserve Banks.

Section 3
Applicant

Bank(s)

Badger Bank Services, Inc.,
Cassville, Wisconsin
Bank South Corporation,
Atlanta, Georgia
Bradford Bancshares, Inc.,
Bradford, Tennessee
Capitol Bancorp, Ltd.,
Lansing, Michigan
Colonial Bancshares, Inc.,
Des Peres, Missouri

Badger State Bank,
Cassville, Wisconsin
Heritage Bancshares, Inc.,
Atlanta, Georgia
Bank of Bradford,
Bradford, Tennessee
Capitol National Bank,
Lansing, Michigan
The Village Bank of St. Louis
County,
St. Louis County, Missouri
Farmers and Merchants Bank of
Cairo,
Harrisville, West Virginia
Princeton State Bank,
Princeton, Minnesota

Commercial BancShares,
Incorporated,
Parkersburg, West Virginia
Dean Financial Services, Inc.,
St. Paul, Minnesota



Reserve
Bank

Effective
date

Chicago

October 16, 1987

Atlanta

September 24, 1987

St. Louis

October 21, 1987

Chicago

September 25, 1987

St. Louis

October 7, 1987

Richmond

October 20, 1987

Minneapolis

October 8, 1987

946

Federal Reserve Bulletin • December 1987

Section 3—Continued
.
Applicant
Family Bancorp,
Grants Pass, Oregon
Farmers Bancorp, Inc.,
Blytheville, Arkansas
Farmers Bancshares, Inc.,
Valmeyer, Illinois
First of America Bank
Corporation,
Kalamazoo, Michigan
First National Bancorp,
Gainesville, Georgia
First National Bank of Sauk
Centre Profit Sharing Trust
No. 1,
Sauk Centre, Minnesota
First National Holding Company,
Inc.,
Fullerton, Nebraska
First Paxton Bancorp, Inc.,
Paxton, Illinois
General Educational Fund, Inc.,
Burlington, Vermont
The Gwinnett Financial
Corporation,
Lawrenceville, Georgia
Ixonia Bancshares, Inc.,
Ixonia, Wisconsin
J.R. Montgomery Bancorporation,
Lawton, Oklahoma
KD Bancshares, Inc.,
Edgerton, Wisconsin
Kingsbury Bank Holding Co.,
De Smet, South Dakota
Lincolnland Bancorp, Inc.,
Dale, Indiana
Little Mountain Bancshares, Inc.,
Monticello, Minnesota
Local Investors, Inc.,
Unadilla, Georgia
Merchants National Corporation,
Indianapolis, Indiana
Mid America Banks, Inc.,
Atlantic, Iowa
NBS Bancorp,
New Brunswick, New Jersey




., s
Bank(s)

n

Reserve
Bank

Effective
date

Family Bank of Commerce,
Grants Pass, Oregon
Farmers Bank and Trust Company,
Blytheville, Arkansas
The Ramsey National Bank,
Ramsey, Illinois
Manistee Bank & Trust Co.,
Manistee, Michigan

San Francisco October 16, 1987
St. Louis

October 19, 1987

St. Louis

October 16, 1987

Chicago

October 13, 1987

First State Bank of Gilmer County,
Ellijay, Georgia
Sauk Centre Financial Services,
Inc.,
Sauk Centre, Minnesota

Atlanta

October 13, 1987

Minneapolis

October 20, 1987

First National Bank and Trust of
Fullerton,
Fullerton, Nebraska
First National Bank in Paxton,
Paxton, Illinois
New England Merchants
Bancshares, Inc.,
Burlington, Vermont
The Bank of Bwinnett County,
Lawrence ville, Georgia

Kansas City

October 9, 1987

Chicago

October 15, 1987

Boston

October 16, 1987

Atlanta

October 20, 1987

Ixonia State Bank,
Ixonia, Wisconsin
Fort Sill National Bank,
Fort Sill, Oklahoma
Kingston-Dalton State Bank,
Kingston, Wisconsin
Peoples State Bank of De Smet,
De Smet, South Dakota
Chrisney State Bank,
Chrisney, Indiana
First National Bank of Monticello,
Monticello, Minnesota
Citizens Bank,
Vienna, Georgia
Elston Corporation,
Crawfordsville, Indiana
Exchange State Bank,
Collins, Iowa
New Brunswick Savings Bank,
New Brunswick, New Jersey

Chicago

September 24, 1987

Kansas City

September 24, 1987

Chicago

September 25, 1987

Minneapolis

September 28, 1987

St. Louis

September 25, 1987

Minneapolis

September 28, 1987

Atlanta

September 30, 1987

Chicago

September 30, 1987

Chicago

October 15, 1987

New York

October 13, 1987

Legal Developments

947

Section 3—Continued
..
Applicant
New England Merchants
Bancshares, Inc.,
Burlington, Vermont
Phoenix Bancorp, Inc.,
Minersville, Pennsylvania
Provident Bankshares
Corporation,
Baltimore, Maryland
Riherd Bank Holding Company,
Lake Butler, Florida
Sauk Centre Financial Services,
Inc.,
Sauk Centre, Minnesota
Shakopee Bancorporation, Inc.,
St. Paul, Minnesota
Union Savings Bancshares, Inc.,
Sedalia, Missouri
Westamerica Bancorporation,
San Rafael, California

Western Community Bancorp,
Corona, California

„ .,,
Bank(s)

Reserve
Bank

Effective
date

Boston

October 16, 1987

Philadelphia

September 25, 1987

Richmond

October 15, 1987

Farmers and Dealers Bank,
Lake Butler, Florida
First National Bank of Sauk Centre,
Sauk Centre, Minnesota

Atlanta

September 30, 1987

Minneapolis

October 20, 1987

Citizens State Bank of Shakopee,
St. Paul, Minnesota
Union Savings Bank,
Sedalia, Missouri
Bank of Mendocino County, N.A.,
Ukiah, California
Bank of Lake County, N.A.,
Lakeport, California
Gold Country Bank, N.A.,
Grass Valley, California
Western Community Bank of
Corona,
Corona, California

Minneapolis

September 28, 1987

Kansas City

September 25, 1987

Merchants Bancshares, Inc.,
Burlington, Vermont
United Vermont Bancorporation,
Rutland, Vermont
Minersville Safe Deposit Bank and
Trust Co.,
Minersville, Pennsylvania
Provident Bank of Maryland,
Baltimore, Maryland

San Francisco October 9, 1987

San Francisco September 22, 1987

Section 4
Applicant
The Chase Manhattan
Corporation,
New York, New York
County Financial Corporation,
North Miami Beach, Florida
First Bank System, Inc.,
Minneapolis, Minnesota
First Commercial Corporation,
Little Rock, Arkansas
First NH Banks, Inc.,
Manchester, New Hampshire
Lincolnland Bancshares, Inc.,
Casey, Illinois



Nonbanking
Company/Activity
selected assets and liabilities of
Lyons Mortgage Corp.,
Rolling Meadows, Illinois
North American Financial Services
of Southeast Florida, Inc.,
North Miami Beach, Florida
Moorhead Agency, Inc.,
Moorhead, Minnesota
GulfNet, Inc.,
New Orleans, Louisiana
Credit America, Inc.,
New Hyde Park, New York
Sweet Insurance Agency,
Martinsville, Illinois

Reserve Bank

Effective date

New York

October 21, 1987

Atlanta

October 16, 1987

Minneapolis

October 13, 1987

St. Louis

October 19, 1987

Boston

October 9, 1987

Chicago

September 30, 1987

948

Federal Reserve Bulletin • December 1987

Sections 3 and 4
Bank(s)/Nonbanking
Company

Applicant

First Mutual Bank,
Pensacola, Florida
Gulf Coast Realty Group, Inc.,
Pensacola, Florida
First Bank Financial Corporation,
Conyers, Georgia
First Financial Realty Service
Corporation,
Conyers, Georgia
Atlanta National Bank,
Atlanta, New York
continue engaging in making,
procuring or acquiring loans and
other extensions of credit

AmSouth Bancorporation,
Birmingham, Alabama

Bank South Corporation,
Atlanta, Georgia

FNB Rochester Corp.,
Rochester, New York

ORDERS APPROVED

UNDER BANK MERGER

Reserve
Bank

Effective
date

Atlanta

September 29, 1987

Atlanta

September 24, 1987

New York

October 21, 1987

ACT

By Federal Reserve Banks
Reserve
Bank

Applicant

Bank(s)

Central Bank,
Monroe, Louisiana
First of America Bank-Manistee,
Manistee, Michigan

Lincoln Bank and Trust Company,
Ruston, Louisiana
Manistee Bank & Trust Co.,
Manistee, Michigan

PENDING

CASES INVOLVING

THE BOARD OF

Effective
date

Dallas

September 29, 1987

Chicago

October 13, 1987

GOVERNORS

This list of pending cases does not include suits against the Federal Reserve Banks in which the Board
of Governors is not named a party.
Teichgraeber v. Board of Governors, No. 87-2505-0
(D. Kan. filed Oct. 16, 1987).
Securities Industry Association v. Board of Governors, No. 87-4135 (2d Cir. filed Oct. 8, 1987).
Independent Insurance Agents of America, Inc. v.
Board of Governors, No. 87-4118 (2d Cir., filed
Sept. 17, 1987).
Citicorp v. Board of Governors, No. 87-1475 (D.C.
Cir. filed Sept. 9, 1987).
Securities Industry Association v. Board of Governors, No. 87-4115 (2d Cir. filed Sept. 9, 1987).
Board of Trade of the City of Chicago, et al. v. Board
of Governors, No. 87-2389 (7th Cir. filed Sept. 1,
1987).




Barrett v. Volcker, No. 87-2280 (D.D.C., filed August
17, 1987).
Northeast Bancorp v. Board of Governors, No.
87-1365 (D.C. Cir., filed July 31, 1987).
National Association of Casualty & Insurance Agents
v. Board of Governors, Nos. 87-1354, 87-1355 (D.C.
Cir., filed July 29, 1987).
The Chase Manhattan Corporation v. Board of Governors, No. 87-1333 (D.C. Cir., filed July 20, 1987).
Securities Industry Association v. Board of Governors, Nos. 87-4091, 87-4093, 87-4095 (2d Cir., filed
July 1 and July 15, 1987).
Lewis v. Board of Governors, Nos. 87-3455, 87-3545
(11th Cir., filed June 25, August 3, 1987).

Legal Developments

Securities Industry Association v. Board of Governors, et al. No. 87-4041 and consolidated cases (2d
Cir., filed May 1, 1987).
Securities Industry Association v. Board of Governors, et al., No. 87-1169 (D.C. Cir., filed April 17,
1987).
Bankers Trust New York Corp. v. Board of Governors,
No. 87-1035 (D.C. Cir., filed Jan. 23, 1987).
Securities Industry Association v. Board of Governors, et al., No. 87-1030 (D.C.Cir., filed Jan. 20,
1987).
Grimm v. Board of Governors, No. 87-4006 (2d Cir.,
filed Jan. 16, 1987).
Independent Insurance Agents of America, et al. v.
Board of Governors, Nos. 86-1572, 1573, 1576
(D.C. Cir., filed Oct. 24, 1986).
Independent Community Bankers Association of
South Dakota v. Board of Governors, No. 86-5373
(8th Cir., filed Oct. 3, 1986).
Jenkins v. Board of Governors, No. 86-1419 (D.C.
Cir., filed July 18, 1986).
Securities Industry Association v. Board of Governors, No. 86-1412 (D.C. Cir., filed July 14, 1986).
CBC, Inc. v. Board of Governors, No. 86-1001 (10th
Cir., filed Jan. 2, 1986).
Myers, et al. v. Federal Reserve Board, No. 85-1427
(D. Idaho, filed Nov. 18, 1985).




949

Souser, et al. v. Volcker, et al., No. 85-C-2370, et al.
(D. Colo., filed Nov. 1, 1985).
Podolak v. Volcker, No. C85-0456, et al. (D. Wyo.,
filed Oct. 28, 1985).
Kolb v. Wilkinson, et al., No. C85-4184 (N.D. Iowa,
filed Oct. 22, 1985).
Farmer v. Wilkinson, et al, No. 4-85-CIVIL-1448 (D.
Minn., filed Oct. 21, 1985).
Kurkowski v. Wilkinson, et al., No. CV-85-0-916 (D.
Neb., filed Oct. 16, 1985).
Alfson v. Wilkinson, et al, No. Al-85-267 (D. N.D.,
filed Oct. 8, 1985).
Independent Community Bankers Associaton of South
Dakota v. Board of Governors, No. 84-1496 (D.C.
Cir., filed Aug. 7, 1985).
Urwyler, et al. v. Internal Revenue Service, et al., No.
85-2877 (9th Cir., filed July 18, 1985).
Wight, et al. v. Internal Revenue Service, et al., No.
85-2826 (9th Cir., filed July 12, 1985).
Lewis v. Volcker, et al., No. 86-3210 (6th Cir., filed
Jan. 14, 1985).
Brown v. United States Congress, et al., No.
84-2887-6(IG) (S.D. Cal., filed Dec. 7, 1984).
Melcher v. Federal Open Market Committee, No.
84-1335 (D.D.C., filed Apr. 30, 1984).

A1

Financial and Business Statistics
CONTENTS

Domestic

MONEY

WEEKLY REPORTING

Financial

Statistics

STOCK AND BANK

CREDIT

A3 Reserves, money stock, liquid assets, and debt
measures
A4 Reserves of depository institutions, Reserve
Bank credit
A5 Reserves and borrowings—Depository
institutions
A6 Selected borrowings in immediately available
funds—Large member banks

POLICY

INSTRUMENTS

A7 Federal Reserve Bank interest rates
A8 Reserve requirements of depository institutions
A9 Federal Reserve open market transactions

A19
A20
A21
A22

BANKS

A10 Condition and Federal Reserve note statements

A l l Maturity distribution of loan and security
holdings

MONETAR Y AND CREDIT

AGGREGATES

A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock, liquid assets, and debt measures
A15 Bank debits and deposit turnover
A16 Loans and securities—All commercial banks

COMMERCIAL

BANKING

INSTITUTIONS

A17 Major nondeposit funds
A18 Assets and liabilities, last-Wednesday-of-month
series




BANKS

Assets and liabilities
All reporting banks
Banks in New York City
Branches and agencies of foreign banks
Gross demand deposits—individuals,
partnerships, and corporations

FINANCIAL

MARKETS

A23 Commercial paper and bankers dollar
acceptances outstanding
A23 Prime rate charged by banks on short-term
business loans
A24 Interest rates—money and capital markets
A25 Stock market—Selected statistics
A26 Selected financial institutions—Selected assets
and liabilities

FEDERAL
FEDERAL RESERVE

COMMERCIAL

FINANCE

A28
A29
A30
A30

Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types and
ownership
A31 U.S. government securities dealers—
Transactions
A32 U.S. government securities dealers—Positions
and financing
A33 Federal and federally sponsored credit
agencies—Debt outstanding

SECURITIES MARKETS AND
CORPORATE
FINANCE

A34 New security issues—State and local
governments and corporations
A35 Open-end investment companies—Net sales and
asset position
A35 Corporate profits and their distribution

61

Federal Reserve Bulletin • December 1987

A36 Nonfinancial corporations—Assets and
liabilities
A36 Total nonfarm business expenditures on new
plant and equipment
A37 Domestic finance companies—Assets and
liabilities and business credit

A54 Foreign official assets held at Federal Reserve
Banks
A55 Foreign branches of U.S. banks—Balance sheet
data
A57 Selected U.S. liabilities to foreign official
institutions

REAL

REPORTED BY BANKS

ESTATE

A3 8 Mortgage markets
A39 Mortgage debt outstanding

CONSUMER

INSTALLMENT

CREDIT

A40 Total outstanding and net change
A41 Terms

FLOW OF FUNDS

IN THE UNITED

STATES

A57
A58
A60
A61

Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A61 Banks' own claims on unaffiliated foreigners
A62 Claims on foreign countries—Combined
domestic offices and foreign branches

REPORTED BY NONBANKING
BUSINESS
ENTERPRISES IN THE UNITED STATES

A42 Funds raised in U.S. credit markets
A43 Direct and indirect sources of funds to credit
markets

A63 Liabilities to unaffiliated foreigners
A64 Claims on unaffiliated foreigners

Domestic

SECURITIES HOLDINGS

SELECTED

Nonfinancial

Statistics

MEASURES

A44 Nonfinancial business activity—Selected
measures
A45 Labor force, employment, and unemployment
A46 Output, capacity, and capacity utilization
A47 Industrial production—Indexes and gross value
A49 Housing and construction
A50 Consumer and producer prices
A51 Gross national product and income
A52 Personal income and saving

International

SUMMARY

Statistics

STATISTICS

A53 U.S. international transactions—Summary
A54 U.S. foreign trade
A54 U.S. reserve assets




AND

TRANSACTIONS

A65 Foreign transactions in securities
A66 Marketable U.S. Treasury bonds and notes—
Foreign transactions

INTEREST AND EXCHANGE

RATES

A67 Discount rates of foreign central banks
A67 Foreign short-term interest rates
A68 Foreign exchange rates

A69 Guide to Tabular
Presentation,
Statistical Releases, and Special
Tables

Money Stock and Bank Credit
1.10

A3

RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent) 1
Item

1986

1987

Q4

Q2

24.3
22.8
25.3
11.0

16.4
16.5
18.5
11.3

8.0
8.4
5.4
6.8

17.0
9.3 r
8.3r
8.4'
12.6'

13.1
6.4'
6.5'
6.3r
10.5'

6.7'
4.3'

4.1'
6.9'

May

June'

July'

Aug.'

Sept.

-1.6
-.5
-.4
4.7

8.2
3.1
7.5
8.7

-13.3
-15.9
-8.1
.5

-2.2
6.9
4.7

5.7
.1
6.3
6.5

-1.0
4.0
-7.1
5.1

6.4
2.3
4.2'
3.2'
8.2'

-.1
2.9
4.9
n.a.
7.2

4.5
.2'
5.4'
9.5'
9.0

-10.4
.5
5.6
3.9
7.9

1.6
2.6
2.3
-1.9
5.6

5.3
6.1
7.4
7.6
7.4

.3
5.3
5.7
n.a.
n.a.

.8
12.1'

4.0
12.7

-1.3'
26.4'

4.4
25.7

2.9
1.5

6.3
12.4

7.1
7.3

Q3

institutions2

1
2
3
4

Reserves of depository
Total
Required
Nonborrowed
Monetary base 3

5
6
7
8
9

Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt

Nontrqnsaction
10 In M2 5
11 In M3 only 6

Ql

1987

»

components

Time and savings deposits
Commercial banks
Savings 7
Small-denomination time 8
Large-denomination time 9-10
Thrift institutions
15
Savings
16
Small-denomination time
17
Large-denomination time 9
12
13
14

Debt components4
18 Federal
19 Nonfederal
20 Total loans and securities at commercial banks

36.9
-10.7
.1

37.3
-4.9
9.7

24.1
-4.6
18.3

7.8
7.9
4.4

16.0
-1.3
18.8

6.9
10.1
16.2

7.5
11.0
-4.6

9.5
6.3
.0

.0
6.2
2.3

23.2
-6.4
-7.0

27.3
-4.2
-9.5

25.9
l.O'
-8.4

7.3
10.6
10.4

17.4
-.5
3.2'

12.6
9.6
8.9

2.5
13.0
8.8

9.0
12.6
13.5

-2.5
11.5
17.3

n.r
13.V
8.8r

12.2r
9.9'
10.1

8.8'
8.1'
7.0

5.9
7.6
5.8

8.2'
9.2'
7.4

7.5
8.0
3.6

1.9
6.8
1.3

8.8
7.0
10.8

n.a.
n.a.
9.7

1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter.
2. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
3. The monetary base not adjusted for discontinuities consists of total
reserves plus required clearing balances and adjustments to compensate for float
at Federal Reserve Banks plus the currency component of the money stock less
the amount of vault cash holdings of thrift institutions that is included in the
currency component of the money stock plus, for institutions not having required
reserve balances, the excess of current vault cash over the amount applied to
satisfy current reserve requirements. After the introduction of contemporaneous
reserve requirements (CRR), currency and vault cash figures are measured over
the weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock plus the remaining items seasonally
adjusted as a whole.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits
at all commercial banks other than those due to domestic banks, the U.S.
government, and foreign banks and official institutions less cash items in the
process of collection and Federal Reserve float; and (4) other checkable deposits
(OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer
service (ATS) accounts at depository institutions, credit union share draft
accounts, and demand deposits at thrift institutions. The currency and demand
deposit components exclude the estimated amount of vault cash and demand
deposits respectively held by thrift institutions to service their OCD liabilities.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, Money Market Deposit Accounts
(MMDAs), savings and small-denomination time deposits (time deposits—including retail RPs—in amounts of less than $100,000), and balances in both taxable and
tax-exempt general purpose and broker/dealer money market mutual funds.
Excludes individual retirement accounts (IRA) and Keogh balances at depository
institutions and money market funds. Also excludes all balances held by U.S.




commercial banks, money market funds (general purpose and broker/dealer),
foreign governments and commercial banks, and the U.S. government. Also
subtracted is a consolidation adjustment that represents the estimated amount of
demand deposits and vault cash held by thrift institutions to service their time and
savings deposits.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted
is a consolidation adjustment that represents the estimated amount of overnight
RPs and Eurodollars held by institution-only money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are based on monthly averages. Growth rates for debt reflect adjustments for
discontinuities over time in the levels of debt presented in other tables.
5. Sum of overnight RPs and Eurodollars, money market fund balances
(general purpose and broker/dealer), MMDAs, and savings and small time
deposits less the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposit liabilities.
6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents,
money market fund balances (institution-only), less a consolidation adjustment
that represents the estimated amount of overnight RPs and Eurodollars held by
institution-only money market mutual funds.
7. Excludes MMDAs.
8. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All IRA and Keogh accounts at commercial
banks and thrifts are subtracted from small time deposits.
9. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
10. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
11. Changes calculated from figures shown in table 1.23.

A4

DomesticNonfinancialStatistics • December 1987

1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT
Millions of dollars
Monthly averages of
daily figures

Weekly averages of daily figures for week ending

1987

1987

Factors
July

Aug.

Sept.

Aug. 19

Aug. 26

Sept. 2

Sept. 9

Sept. 16

Sept. 23

Sept. 30

233,463

231,606

240,591

230,970

230,986

231,645

234,854

236,459

251,912

241,835

208,364
208,258
106
7,690
7,660
30
0
673
979
15,757
11,069
5,018
17,878

206,708
206,187
521
7,764
7,623
141
0
630
702
15,802
11,068
5,018
17,930

214,298
211,468
2,830
8,399
7,623
776
0
956
774
16,164
11,068
5,018
17,981

205,769
205,283
486
7,717
7,623
94
0
525
874
16,085
11,069
5,018
17,930

206,390
205,870
520
7,747
7,623
124
0
912
519
15,417
11,069
5,018
17,944

207,326
207,326
0
7,624
7,624
0
0
546
541
15,609
11,068
5,018
17,957

209,909
209,909
0
7,623
7,623
0
0
748
845
15,730
11,069
5,018
17,967

211,026
211,026
0
7,623
7,623
0
0
1,026
770
16,014
11,068
5,018
17,977

223,407
214,425
8,982
10,013
7,623
2,390
0
976
822
16,694
11,068
5,018
17,987

214,861
211,713
3,148
8,558
7,623
935
0
1,197
503
16,717
11,068
5,018
17,997

216,361
486

216,805
471

217,718
459

217,318
473

216,530
471

216,545
465

218,296
458

218,742
458

217,459
460

216,549
459

5,140
258

3,409
237

10,585
248

3,174
260

3,116
252

3,496
218

3,698
276

4,207
255

21,647
198

14,355
263

2,200
352

1,937
331

1,930
390

1,923
359

1,960
352

1,973
377

1,909
337

1,908
371

1,965
376

1,999
484

SUPPLYING RESERVE FUNDS

1 Reserve Bank credit
2
U.S. government securities1
3
Bought outright
Held under repurchase agreements....
4
5 Federal agency obligations
6
Bought outright
7
Held under repurchase agreements....
8 Acceptances
9
Loans
10 Float
11 Other Federal Reserve assets
12 Gold stock2
13 Special drawing rights certificate account..
14 Treasury currency outstanding
ABSORBING RESERVE FUNDS

15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and
adjustments
20 Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks3

6,664

6,667

7,213

6,746

6,704

6,772

7,145

7,053

7,668

7,094

35,966

35,765

36,115

34,733

35,629

35,843

36,789

37,527

36,214

34,716

End-of-month figures

Wednesday figures

1987

1987

July

Aug.

Sept.

Aug. 19

Aug. 26

Sept. 2

Sept. 9

Sept. 16

Sept. 23

Sept. 30

SUPPLYING RESERVE FUNDS

234,310

231,689

238,823

230,358

237,247

231,060

238,833

241,092

261,278

238,823

U.S. government securities1
Bought outright
Held under repurchase agreements....
Federal agency obligations
Bought outright
Held under repurchase agreements....
Acceptances
Loans
Float
Other Federal Reserve assets

208,170
204,871
3,299
8,553
7,623
930
0
634
507
16,446

207,238
207,238
0
7,623
7,623
0
0
566
510
15,752

211,941
211,941
0
7,623
7,623
0
0
1,941
248
17,070

206,288
206,288
0
7,623
7,623
0
0
502
715
15,230

209,448
205,809
3,639
8,493
7,624
869
0
2,973
714
15,619

206,643
206,643
0
7,623
7,623
0
0
506
535
15,753

211,660
211,660
0
7,623
7,623
0
0
1,449
2,256
15,845

215,220
215,220
0
7,623
7,623
0
0
672
877
16,700

231,599
214,370
17,229
11,073
7,624
3,449
0
935
522
17,149

211,941
211,941
0
7,623
7,623
0
0
1,941
248
17,070

34 Gold stock2
35 Special drawing rights certificate account..
36 Treasury currency outstanding

11,069
5,018
17,900

11,068
5,018
17,956

11,075
5,018
18,006

11,069
5,018
17,942

11,068
5,018
17,956

11,068
5,018
17,966

11,068
5,018
17,976

11,068
5,018
17,986

11,068
5,018
17,996

11,075
5,018
18,006

215,898
470

216,471
463

216,776
460

217,145
473

216,415
468

217,283
461

219,067
458

218,365
460

217,010
459

216,776
460

5,365
262

3,763
295

9,120
456

3,112
188

3,955
217

5,530
213

2,418
317

9,479
282

25,657
218

9,120
456

1,747
281

1,709
284

1,706
419

1,697
312

1,698
486

1,709
349

1,708
308

1,718
503

1,719
324

1,706
419

23 Reserve Bank credit
24
25
26
27
28
29
30
31
32
33

ABSORBING RESERVE FUNDS

37 Currency in circulation
38 Treasury cash holdings2
Deposits, other than reserve balances, with
Federal Reserve Banks
39 Treasury
40 Foreign
41 Service-related balances and
adjustments
42
Other
43 Other Federal Reserve liabilities and
capital
44 Reserve balances with Federal
Reserve Banks3

6,520

6,964

6,663

6,525

6,658

6,721

6,828

7,180

7,996

6,663

37,754

35,782

37,321

34,936

41,392

32,846

41,791

37,177

41,976

37,321

1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes any securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Revised for periods between October 1986 and April 1987. At times during
this interval, outstanding gold certificates were inadvertently in excess of the gold




stock. Revised data not included in this table are available from the Division of
Research and Statistics, Banking Section.
3. Excludes required clearing balances and adjustments to compensate for
float.
NOTE. For amounts of currency and coin held as reserves, see table 1.12.

Money Stock and Bank Credit
1.12 RESERVES AND BORROWINGS

A5

Depository Institutions

Millions of dollars
Monthly averages 8
Reserve classification

Reserve balances with Reserve Banks 1
Total vault cash 2
Vault3
Surplus4
Total reserves 5
Required reserves
Excess reserve balances at Reserve Banks 6
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks

1985

1986

Dec.
1
2
3
4
5
6
7
8
9
10

1984

Dec.

Dec.

Feb.

Mar.

Apr.

May

June

July

Aug.

21,738
22,313
18,958
3,355
40,696
39,843
853
3,186
113
2,604

27,620
22,953
20,522
2,431
48,142
47,085
1,058
1,318
56
499

37,360
24,071
22,199
1,872
59,560
58,191
1,369
827
38
303

33,625
25,889
23,435
2,454
57,060
55,849
1,211
556
71
283

35,318
23,759
21,743
2,016
57,061
56,146
916
527
91
264

37,807
23,353
21,587
1,767
59,393
58,566
827
993
120
270

36,466
23,693
21,873
1,820
58,339
57,260
1,079
1,035
196
288

36,309
24,380
22,475
1,905
58,784
57,594
1,190
776
259
273

36,110
24,631
22,728
1,903
58,838
58,078
761
672
283
194

35,616
24,649
22,745
1,904
58,361
57,329
1,032
647
279
132

1987

Biweekly averages of daily figures for weeks ending
1987
June 3
11
12
13
14
15
16
17
18
19
20

Reserve balances with Reserve Banks 1
Total vault cash
Vault3
Surplus 4 .
Total reserves
Required reserves
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks

June 17

July 1

July 15

July 29

Aug. 12p

Aug. 26

Sept. 9

Sept. 23

Oct. 1"

36,018
24,094
22,158
1,936
58,176
57,042
1,134
1,094
226
297

37,145
23,668
21,972
1,696
59,117
58,313
804
635
230
254

35,475
25,215
23,092
2,123
58,567
56,947
1,620
856
298
289

37,083
24,238
22,470
1,769
59,553
59,081
472
696
271
261

35,221
25,029
23,002
2,027
58,223
57,240
983
652
294
133

35,850
24,306
22,439
1,867
58,289
57,488
801
564
289
120

35,173
25,074
23,115
1,959
58,288
57,116
1,173
719
286
128

36,294r
24,288
22,446r
l,842 r
58,74c
57,546'
1,194
647
241
173

36,866
25,146
23,475
1,672
60,340
59,825
515
1,001
226
531

36,826
25,026
23,313
1,713
60,139
59,306
833
1,195
230
469

1. Excludes required clearing balances and adjustments to compensate for
float.
2. Dates refer to the maintenance periods in which the vault cash can be used
to satisfy reserve requirements. Under contemporaneous reserve requirements,
maintenance periods end 30 days after the lagged computation periods in which
the balances are held.
3. Equal to all vault cash held during the lagged computation period by
institutions having required reserve balances at Federal Reserve Banks plus the
amount of vault cash equal to required reserves during the maintenance period at
institutions having no required reserve balances.
4. Total vault cash at institutions having no required reserve balances less the
amount of vault cash equal to their required reserves during the maintenance
period.
5. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash used to satisfy reserve
requirements. Such vault cash consists of all vault cash held during the lagged




computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy
reserve requirements less required reserves.
7. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
8. Before February 1984, data are prorated monthly averages of weekly
averages; beginning February 1984, data are prorated monthly averages of
biweekly averages.
NOTE. These data also appear in the Board's H.3 (502) release. For address, see
inside front cover.

A6

DomesticNonfinancialStatistics • December 1987

1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS

Large Member Banks1

Averages of daily figures, in millions of dollars
1987 week ending Monday
Maturity and source
May 18

1
2

3
4

Federal funds purchased, repurchase agreements, and
other selected borrowing in immediately available
funds
From commercial banks in the United States
For one day or under continuing contract
For all other maturities
From other depository institutions, foreign banks and
foreign official institutions, and United States government agencies
For one day or under continuing contract
For all other maturities

May 25

June 1

June 8

June 16

June 22

June 29

July 6

July 13

74,185
9,341

70,799
9,586

71,703
9,567

74,810
9,362

72,633
9,325

68,755
8,719

66,856
8,430

73,997
11,099

74,109
8,691

34,183
9,731

34,329
9,654

34,356
9,008

35,114
8,503

34,380
8,508

31,698
8,378

33,067
8,502

26,568
11,895

33,873
8,167

Repurchase agreements on U.S. government and federal
agency securities in immediately available funds
Brokers and nonbank dealers in securities
For one day or under continuing contract
For all other maturities
All other customers
For one day or under continuing contract
For all other maturities

11,404
15,298

11,482
15,980

10,800
14,975

10,497
14,421

10,459
14,413

9,664
13,794

9,958
12,793

8,076
12,327

10,541
11,214

24,329
8,678

24,777
8,561

25,068
8,741

24,985
8,561

25,470
8,289

24,139
8,882

25,518
9,029

22,802
11,445

25,558
8,261

MEMO: Federal funds loans and resale agreements in immediately available funds in maturities of one day or
under continuing contract
9 To commercial banks in the United States
10 To all other specified customers

29,112
13,004

26,927
13,353

29,051
13,481

28,335
13,857

25,945
14,117

26,899
14,685

27,562
12,666

35,566
13,086

33,560
13,700

5
6
7
8

1. Banks with assets of $1 billion or more as of Dec. 31, 1977.




2. Brokers and nonbank dealers in securities; other depository institutions;
foreign banks and official institutions; and United States government agencies.

Policy Instruments

A7

1.14 FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Extended Credit2

Adjustment Credit
and
Seasonal Credit1

Federal Reserve
Bank

After 30 days of Borrowing3

First 30 days of Borrowing

On
10/28/87

Effective
Date

Previous
Rate

On
10/28/87

Effective
Date

Previous
Rate

On
10/28/87

Effective
Date

Previous
Rate

Effective Date

6

9/9/87
9/4/87
9/4/87
9/4/87
9/5/87
9/4/87

5W

6

9/9/87
9/4/87
9/4/87
9/4/87
9/5/87
9/4/87

5 Vi

8.50

10/22/87
10/22/87
10/22/87
10/22/87
10/22/87
10/22/87

8.15

10/8/87
10/8/87
10/8/87
10/8/87
10/8/87
10/8/87

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco . . .

6

9/4/87
9/9/87
9/8/87
9/4/87
9/11/87
9/9/87

5W

9/4/87
9/9/87
9/8/87
9/4/87
9/11/87
9/9/87

6

5Vl

8.50

10/22/87
10/22/87
10/22/87
10/22/87
10/22/87
10/22/87

10/8/87
10/8/87
10/8/87
10/8/87
10/8/87
10/8/87

8.15

Range of rates for adjustment credit in recent years 4
Range (or
level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

In effect Dec. 31, 1977
1978—Jan. 9
20
May 11
12
July 3
10
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3

6
6-6 Vl
6 Vi
6W-7
1
1-1V\
7V4
73/4
8
8-8 W
8W
8W-9W
9 Vi

6
6 Vi
6 Vi
7
7
7V4
IVi
73/4
8
8 Vi
8 Vi
9 Vi
9 Vi

1979—July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10

10
10-10W
low
10W-11
11
11-12
12

10
10W
low
11
11
12
12

1980—Feb. 15
19
May 29
30
June 13
16

12-13
13
12-13
12
11-12
11

Effective date

13
13
13
12
11
11

Effective

F.R.
Bank
of
N.Y.

Effective date

Range (or
level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

—July
1980-—July 78
79
Sept. 76
Nov. 17
Dec. 5

10-11
10
11
12
12-13

10
10
11
12
13

1984—Apr.

9
13
Nov. 21
26
Dec. 24

8W-9
9
8W-9
8W
8

9
9
8W
8W
8

5
8
7
6
4

13-14
14
13-14
13
12

14
14
13
13
12

1985—May 20
24

7W-8
IVi

7W
7W

1986—Mar.

1-lVi
1
evi-i
6
5W-6
5W

7
7
6W
6
5W
5W

5W-6
6

6
6

6

6

1981-—May
—May
Nov.
Dec.

1982--July 70
-July
73
Aug. 7
3
16
77
30
Oct. 17
13
Nov. 77
76
Dec. 14
15
17 ..

1. Adjustment credit is available on a short-term basis to help depository
institutions meet temporary needs for funds that cannot be met through reasonable alternative sources. After May 19,1986, the highest rate established for loans
to depository institutions may be charged on adjustment credit loans of unusual
size that result from a major operating problem at the borrower's facility.
Seasonal credit is available to help smaller depository institutions meet regular,
seasonal needs for funds that cannot be met through special industry lenders and
that arise from a combination of expected patterns of movement in their deposits
and loans. A temporary simplified seasonal program was established on Mar. 8,
1985, and the interest rate was a fixed rate Vl percent above the rate on adjustment
credit. The program was re-established on Feb. 18, 1986 and again on Jan. 28,
1987; the rate may be either the same as that for adjustment credit or a fixed rate
W percent higher.
2. Extended credit is available to depository institutions, where similar assistance is not reasonably available from other sources, when exceptional circumstances or practices involve only a particular institution or when an institution is
experiencing difficulties adjusting to changing market conditions over a longer
period of time.
3. For extended-credit loans outstanding more than 30 days, a flexible rate




Range (or
level)—
All F.R.
Banks

11W-12
11W
11-11W
11
10W
10-10W
10
9W-10
9W
9-9W
9
8W-9
8W-9
8W

11W
11W
11
11
10W
10
10
9W
9W
9
9
9
8W
8W

7
10
Apr. 21
July 11
Aug. 12
22

1987—Sept.

4
11

In effect October 28, 1987 . . . .

somewhat above rates on market sources of funds ordinarily will be charged, but
in no case will the rate charged be less than the basic discount rate plus 50 basis
points. The flexible rate is re-established on the first business day of each
two-week reserve maintenance period. At the discretion of the Federal Reserve
Bank, the time period for which the basic discount rate is applied may be
shortened.
4. For earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics, 1914-1941, and 1941-1970\ Annual Statistical
Digest, 1970-1979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than 4 weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980 through May 7,
1980. There was no surcharge until Nov. 17,1980, when a 2 percent surcharge was
adopted; the surcharge was subsequently raised to 3 percent on Dec. 5,1980, and
to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective
Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981 the
formula for applying the surcharge was changed from a calendar quarter to a
moving 13-week period. The surcharge was eliminated on Nov. 17, 1981.

A8

DomesticNonfinancialStatistics • December 1987

1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1
Percent of deposits

Type of deposit, and
deposit interval

Depository institution requirements
after implementation of the
Monetary Control Act

Effective date
Net transaction accounts •
$0 million-$36.7 million....
More than $36.7 million . . .

12/30/86
12/30/86

Nonpersonal time deposits5
By original maturity
Less than 1 Vi years
1 Vl years or more

10/6/86
10/6/83

Eurocurrency liabilities
All types
1. Reserve requirements in effect on Dec. 31, 1986. Required reserves must be
held in the form of deposits with Federal Reserve Banks or vault cash.
Nonmembers may maintain reserve balances with a Federal Reserve Bank
indirectly on a pass-through basis with certain approved institutions. For previous
reserve requirements, see earlier editions of the Annual Report and of the
FEDERAL RESERVE BULLETIN. Under provisions of the Monetary Control Act,
depository institutions include commercial banks, mutual savings banks, savings
and loan associations, credit unions, agencies and branches of foreign banks, and
Edge corporations.
2. The Garn-St. Germain Depository Institutions Act of 1982 (Public Law
97-320) requires that $2 million of reservable liabilities (transaction accounts,
nonpersonal time deposits, and Eurocurrency liabilities) of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabilities subject to this zero percent reserve requirement each year for the succeeding calendar year by 80 percent of the percentage
increase in the total reservable liabilities of all depository institutions, measured
on an annual basis as of June 30. No corresponding adjustment is to be made in
the event of a decrease. On Dec. 30, 1986, the exemption was raised from $2.6
million to $2.9 million. In determining the reserve requirements of depository
institutions, the exemption shall apply in the following order: (1) net NOW
accounts (NOW accounts less allowable deductions); (2) net other transaction
accounts; and (3) nonpersonal time deposits or Eurocurrency liabilities starting




11/13/80
with those with the highest reserve ratio. With respect to NOW accounts and
other transaction accounts, the exemption applies only to such accounts that
would be subject to a 3 percent reserve requirement.
3. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers in excess of
three per month for the purpose of making payments to third persons or others.
However, MMDAs and similar accounts subject to the rules that permit no more
than six preauthorized, automatic, or other transfers per month, of which no more
than three can be checks, are not transaction accounts (such accounts are savings
deposits subject to time deposit reserve requirements).
4. The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage increase in transaction accounts held by
all depository institutions, determined as of June 30 each year. Effective Dec. 30,
1986, the amount was increased from $31.7 million to $36.7 million.
5. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which a beneficial interest is
held by a depositor that is not a natural person. Also included are certain
transferable time deposits held by natural persons and certain obligations issued
to depository institution offices located outside the United States. For details, see
section 204.2 of Regulation D.

Policy Instruments
1.17

A9

FEDERAL RESERVE OPEN MARKET TRANSACTIONS 1
Millions of dollars
1987
Type of transaction

1984

1985

1986
Feb.

Apr.

Mar.

June

May

Aug.

July

U . S . TREASURY SECURITIES

Outright transactions (excluding matched
transactions)
1
2
3
4

Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions

5
6
/
8
9

20,036
8,557
0
7,700

22,214
4,118
0
3,500

22,602
2,502
0
1,000

191
3,581
0
800

1,062
0
0
0

4,226
653
0
0

1,697
0
0
0

575
22
0
0

575
912
0
4,572

499
0
0
0

Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions

1,126
0
16,354
-20,840
0

1,349
0
19,763
-17,717
0

190
0
18,673
-20,179
0

0
0
1,855
-4,954
0

0
0
1,762
-1,799
0

1,232
0
1,375
-522
0

0
0
4,063
-1,336
0

535
0
1,715
-1,812
0

0
0
1,437
-613
0

0
0
2,723
-1,787
0

10
11
12
13

1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange

1,638
0
-13,709
16,039

2,185
0
-17,459
13,853

893
0
-17,058
16,984

0
252
-1,650
4,354

0
0
-1,762
1,799

3,642
0
-1,373
522

0
0
-1,804
1,111

1,394
0
-1,715
1,812

0
200
-1,397
613

5
0
-2,122
1,612

14
IS
16
1/

5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange

536
300
-2,371
2,750

458
100
-1,857
2,184

236
0
-1,620
2,050

0
0
-204
400

0
0
0
0

914
0
-3
0

0
0
-2,259
150

312
0
0
0

0
0
-40
0

0
0
-601
100

18
19
20
21

Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange

441
0
-275
2,052

293
0
-447
1,679

158
0
0
1,150

0
0
0
200

0
0
0
0

669
0
0
0

0
0
0
75

251
0
0
0

0
0
0
0

0
0
0
75

23,776
8,857
7,700

26,499
4,218
3,500

24,078
2,502
1,000

191
3,833
800

1,062
0
0

10,683
653
0

1,697
0
0

3,066
22
0

575
1,112
4,572

504
0
0

Matched transactions
2S Gross sales
26 Gross purchases

808,986
810,432

866,175
865,968

927,997
927,247

82,086
81,387

72,306
73,476

83,822
82,494

91,642
92,137

87,228
87,128

80,304
80,037

60,731
62,594

Repurchase agreements2
21 Gross purchases
28 Gross sales

127,933
127,690

134,253
132,351

170,431
160,268

0
3,168

5,657
5,657

37,653
23,881

59,340
73,111

24,167
22,108

3,298
2,058

9,013
12,311

8,908

20,477

29,989

-8,307

2,231

22,474

-11,580

5,002

-4,136

-931

0
0
256

0
0
162

0
0
398

0
0
0

0
0
0

0
0
37

0
0

0
0
0

0
0
59

0
0
0

11,509
11,328

22,183
20,877

31,142
30,522

0
857

897
897

9,265
5,908

16,071
19,428

3,907
2,910

929
996

2,369
3,298

-76

1,144

222

-857

0

3,320

-3,357

997

-126

-929

36 Repurchase agreements, net

-418

0

0

0

0

0

0

0

0

0

37 Total net change in System Open Market
Account

8,414

21,621

30,211

-9,165

2,231

25,794

-14,936

5,999

-4,262

-1,861

All maturities
22 Gross purchases
23 Gross sales
24 Redemptions

29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS

Outright transactions
30 Gross purchases
31 Gross sales
32 Redemptions
Repurchase agreements2
33 Gross purchases
34 Gross sales
35 Net change in federal agency obligations

*

BANKERS ACCEPTANCES

1. Sales, redemptions, and negative figures reduce holdings of the System Open
Market Account; all other figures increase such holdings. Details may not add to
totals because of rounding.




2. In July 1984 the Open Market Trading Desk discontinued accepting bankers
acceptances in repurchase agreements,

A10

DomesticNonfinancialStatistics • December 1987

1.18 FEDERAL RESERVE BANKS

Condition and Federal Reserve Note Statements1

Millions of dollars
Wednesday
1987

Account
Sept. 2

Sept. 9

End of month
1987

Sept. 16

Sept. 23

Sept. 30

July

Aug.

Sept.

Consolidated condition statement
ASSETS

1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4 To depository institutions
5 Other
6 Acceptances held under repurchase agreements
Federal agency obligations
7
Bought outright
8 Held under repurchase agreements
U.S. Treasury securities
Bought outright
9
Bills
10
Notes
11
Bonds
12
Total bought outright
13 Held under repurchase agreements
14 Total U.S. Treasury securities
15 Total loans and securities

20 Total assets

11,068
5,018
421

11,068
5,018
427

11,068
5,018
441

11,075
5,018
449

11,069
5,018
647

11,068
5,018
446

11,075
5,018
449

506
0
0

1,449
0
0

672
0
0

935
0
0

1,941
0
0

634
0
0

566
0
0

1,941
0
0

7,623
0

7,623
0

7,623
0

7,624
3,449

7,623
0

7,623
930

7,623
0

7,623
0

104,293
75,252
27,098
206,643
0
206,643

109,309
75,252
27,099
211,660
0
211,660

108,765
78,844
27,611
215,220
0
215,220

107,914
78,845
27,611
214,370
17,229
231,599

105,785
78,544
27,612
211,941
0
211,941

102,526
75,322
27,023
204,871
3,299
208,170

104,888
75,252
27,098
207,238
0
207,238

105,785
78,544
27,612
211,941
0
211,941

214,772

220,732

223,515

243,607

221,505

217,357

215,427

221,505

6,852
685

10,157
688

8,462
687

6,311
687

6,287
688

5,575
687

5,025
686

7,532
688

8,241
6,827

8,122
7,035

8,130
7,755

8,134
8,328

8,038
8,344

7,666
8,096

8,244
6,822

8,038
8,344

253,900

16 Items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies 3
19 All other

11,068
5,018
437

263,241

265,062

283,594

261,404

256,115

252,736

262,649

LIABILITIES

200,215

201,970

201,266

199,915

199,680

199,115

199,424

199,680

22
23
24
25

21 Federal Reserve notes
Deposits
To depository institutions
U.S. Treasury—General account
Foreign—Official accounts
Other

34,555
5,530
213
349

43,499
2,418
317
308

38,895
9,479
282
503

43,695
25,657
218
324

39,027
9,120
456
419

39,501
5,365
262
281

37,491
3,763
295
284

39,027
9,120
456
419

26 Total deposits

40,647

46,542

49,159

69,894

49,022

45,409

41,833

49,022

6,317
2,247

7,901
2,532

7,466
2,859

5,789
3,661

6,039
2,386

5,071
2,341

4,515
2,280

7,284
2,386

249,426

258,945

260,750

279,259

257,127

251,936

248,052

258,372

1,985
1,874
615

2,000
1,874
422

1,999
1,874
439

2,005
1,873
457

2,009
1,873
395

1,970
1,872
337

1,984
1,874
826

2,009
1,873
395

33 Total liabilities and capital accounts

253,900

263,241

265,062

283,594

261,404

256,115

252,736

262,649

34 MEMO: Marketable U.S. Treasury securities held in
custody for foreign and international account

183,299

183,882

184,423

181,872

182,078

176,181

183,931

182,078

27 Deferred credit items
28 Other liabilities and accrued dividends
29 Total liabilities
CAPITAL ACCOUNTS

30 Capital paid in
31 Surplus
32 Other capital accounts

Federal Reserve note statement
35 Federal Reserve notes outstanding issued to bank
36
LESS: Held by bank
37
Federal Reserve notes, net
Collateral held against notes net:
38 Gold certificate account
Special drawing rights certificate account
39
40 Other eligible assets
41 U.S. Treasury and agency securities

250,683
50,468
200,215

251,048
49,078
201,970

251,778
50,512
201,266

252,482
52,567
199,915

252,932
53,252
199,680

247,656
48,541
199,115

250,354
50,930
199,424

252,932
53,252
199,680

11,068
5,018
0
184,129

11,068
5,018
0
185,884

11,068
5,018
0
185,180

11,068
5,018
0
183,829

11,075
5,018
0
183,587

11,069
5,018
0
183,028

11,068
5,018
0
183,338

11,075
5,018
0
183,587

42 Total collateral

200,215

201,970

201,266

199,915

199,680

199,115

199,424

199,680

1. Some of these data also appear in the Board's H.4.1 (503) release. For
address, see inside front cover.
2. Includes securities loaned—fully guaranteed by U.S. Treasury securities
pledged with Federal Reserve Banks—and excludes securities sold and scheduled
to be bought back under matched sale-purchase transactions.
3. Valued monthly at market exchange rates.




4. Includes special investment account at the Federal Reserve Bank of Chicago
in Treasury bills maturing within 90 days.
5. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.

Federal Reserve Banks
1.19 FEDERAL RESERVE BANKS

All

Maturity Distribution of Loan and Security Holdings

Millions of dollars
Wednesday
1987

Type and maturity groupings

End of month
1987

Sept. 2

Sept. 9

Sept. 16

Sept. 23

Sept. 30

July 31

Aug. 31

Sept. 30

Within 15 days
16 days to 90 days
91 days to 1 year

506
370
136
0

1,449
1,316
133
0

672
631
41
0

935
904
31
0

1,941
1,878
61
2

634
503
131
0

566
466
100
0

1,941
1,878
61
2

5 Acceptances—Total
6 Within 15 days
16 days to 90 days
7
8 91 days to 1 year

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

206,643
11,726
50,794
65,120
40,467
14,200
24,336

211,660
10,646
52,428
69,582
40,467
14,201
24,336

215,220
13,833
48,771
69,950
43,018
14,819
24,829

231,599
12,567
66,362
70,004
43,018
14,819
24,829

211,941
12,767
49,795
67,296
42,435
14,819
24,829

208,170
12,461
49,845
65,929
40,972
14,702
24,261

207,238
8,671
53,685
65,878
40,467
14,201
24,336

211,941
12,767
49,795
67,2%
42,435
14,819
24,829

7,623
70
965
1,375
3,647
1,286
280

7,623
70
966
1,374
3,647
1,286
280

7,623
288
688
1,444
3,602
1,321
280

11,073
288
4,138
1,444
3,602
1,321
280

7,623
359
602
1,446
3,615
1,321
280

8,553
1,093
843
1,307
3,741
1,289
280

7,623
315
726
1,353
3,663
1,286
280

7,623
359
602
1,446
3,615
1,321
280

2
3
4

9 U.S. Treasury securities—Total
10 Within 15 days 1
11 16 days to 80 days
12 91 days to 1 year
13 Over 1 year to 5 years
14 Over 5 years to 10 years
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

1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements.




A12
1.20

DomesticNonfinancialStatistics • December 1987
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS A N D MONETARY

BASE

Billions of dollars, averages of daily figures
1987
Item

1983
Dec.

1984
Dec/

1985
Dec.

1986
Dec.
Feb.

Mar.

Apr.

May

June

July

Aug/

Sept.

Seasonally adjusted
CHANGES IN RESERVE REQUIREMENTS'

1 Total reserves2
2
3
4
5

Nonborrowed reserves
Nonborrowed reserves plus extended credit3
Required reserves
Monetary base 4

36.11

39.91

46.06

56.17

56.87

56.85

57.95

58.35

57.71

57.60

57.88

57.83

35.33
35.33
35.55
185.23

36.72
39.33
39.06
199.60

44.74
45.24
45.00
217.32

55.34
55.64
54.80
239.51

56.32
56.60
55.66
243.97

56.32
56.59
55.94
244.56

56.96
57.23
57.13
246.59

57.32
57.60
57.27
248.37

56.93
57.20
56.52
248.48

56.93
57.12
56.84
249.46

57.23
57.36
56.84
250.80

56.89
57.30
57.03
251.86

Not seasonally adjusted
6 Total reserves2
7
8
9
10

Nonborrowed reserves
Nonborrowed reserves plus extended credit3
Required reserves
Monetary base 4

36.81

40.94

47.24

57.64

56.09

56.07

58.37

57.30

57.63

57.74

57.39

57.50

36.04
36.04
36.25
188.50

37.75
40.35
40.08
202.70

45.92
46.42
46.18
220.82

56.81
57.11
56.27
243.63

55.53
55.81
54.88
240.82

55.54
55.80
55.15
241.92

57.38
57.65
57.54
246.07

56.26
56.55
56.22
246.83

56.85
57.12
56.43
249.29

57.07
57.27
56.98
251.42

56.74
56.88
56.36
251.42

56.56
56.97
56.70
251.61

38.89

40.70

48.14

59.56

57.06

57.06

59.39

58.34

58.78

58.84

58.36

59.82

38.12
38.12
38.33
192.26

37.51
40.09
39.84
204.18

46.82
47.41
47.08
223.53

58.73
59.04
58.19
247.71

56.50
56.74
55.85
244.22

56.53
56.82
56.15
244.98

58.40
58.19
58.57
249.24

57.30
58.03
57.26
249.94

58.01
58.34
57.59
252.54

58.17
58.37
58.08
254.67

57.71
57.76
57.33
254.36

58.88
58.85
59.02
255.69

N O T ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 5

11 Total reserves2
12
13
14
15

Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves
Monetary base 4

1. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for
discontinuities in the monetary base, required clearing balances and adjustments
to compensate for float also are subtracted from the actual series.
2. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash held during the lagged
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
3. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
4. The monetary base not adjusted for discontinuities consists of total reserves
plus required clearing balances and adjustments to compensate for float at Federal
Reserve Banks and the currency component of the money stock less the amount




of vault cash holdings of thrift institutions that is included in the currency
component of the money stock plus, for institutions not having required reserve
balances, the excess of current vault cash over the amount applied to satisfy
current reserve requirements. After the introduction of contemporaneous reserve
requirements (CRR), currency and vault cash figures are measured over the
weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock and the remaining items seasonally
adjusted as a whole.
5. Reflects actual reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated with
implementation of the Monetary Control Act or other regulatory changes to
reserve requirements.
NOTE. Latest monthly and biweekly figures are available from the Board's
H.3(502) statistical release. Historical data and estimates of the impact on
required reserves of changes in reserve requirements are available from the
Banking Section, Division of Research and Statistics, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.

Monetary and Credit Aggregates

A13

1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Billions of dollars, averages of daily figures
1987
Item1

1983
Dec.

1984
Dec.

1985
Dec.

1986
Dec.

June r

July'

Aug/

Sept.

Seasonally adjusted
1 Ml
7 M2
M3
4 L
5 Debt
6
7
8
9

Ml components
Currency 2
Travelers checks 3
Demand deposits 4
Other checkable deposits

526.9
2,184.6
2,692.8
3,154.6
5,195.5r

557.5
2,369.1
2,985.4
3,528.V
5,932.9^

627.0
2,569.5
3,205.2
3,837.6''
6,746.9'

730.5
2,801.2
3,492.3
4,139.y
7,601.3r

746.6
2,841.5
3,576.5
4,228.4
7,917.0

747.6
2,847.7
3,583.5
4,221.6
7,954.2

750.9
2,862.1
3,605.5
4,248.5
8,003.4

751.1
2,874.7
3,622.6
n.a.
n.a.

148.3
4.9
242.3
131.4

158.5
5.2
248.3
145.5

170.6
5.9
272.2
178.3

183.5
6.4
308.3
232.2

191.1
6.8
297.4
251.2

192.1
6.8
296.2
252.5

193.2
6.9
296.4
254.5

194.5
7.0
294.0
255.5

1,657.7
508.2

1,811.5
616.3

1,942.5
635.7

2,070.8
691.1

2,095.0
734.9

2,100.1
735.8

2,111.1
743.4

2,123.6
747.9

10
11

Nontransactions components
In M2
In M3 only7

17
13

Savings deposits 8
Commercial Banks
Thrift institutions

133.2
173.0

122.2
166.6

124.6
179.0

154.5
211.8

175.5
239.7

176.6
240.2

178.0
242.0

178.0
241.5

14
15

Small denomination time deposits 9
Commercial Banks
Thrift institutions

350.9
432.9

386.6
498.6

383.9
500.3

364.7
488.7

360.1
490.0

363.4
495.3

365.3
500.5

367.2
505.3

16
17

Money market mutual funds
General purpose and broker/dealer
Institution-only

138.2
43.2

167.5
62.7

176.5
65.1

207.6
84.1

209.6
81.3

209.8
83.4

212.8
83.4

216.5
80.7

18
19

Large denomination time deposits 10
Commercial Banks11
Thrift, institutions

230.0
96.2

269.6
147.3

284.1
152.1

291.8
155.3

314.9
150.2

313.7
151.3

313.7
153.0

314.3
155.2

70
21

Debt components
Federal debt
Nonfederal debt

l,170.8r
4,024.6r

1,365.3
4,567.6r

l,584.3r
5,162.6r

1,803.9
5,797.4

1,885.6
6,031.4

1,888.6
6,065.6

1,902.5
6,100.9

n.a.
n.a.

Not seasonally adjusted
538.3
2,191.6
2,702.4
3,163.1
5,189.7r

570.3
2,378.3
2,997.2
3,538.8r
5,927.V

641.0
2,580.5
3,218.4
3,849.4r
6,740.7r

746.5
2,814.7
3,507.5
4,153.4
7,594.9

749.1
2,842.7
3,574.3
4,227.6
7,890.5

751.5
2,854.8
3,583.2
4,221.8
7,930.8

749.3
2,860.1
3,601.0
4,245.1
7,982.1

749.3
2,867.5
3,617.4
n.a.
n.a.

150.6
4.6
251.0
132.2

160.8
4.9
257.2
147.4

173.1
5.5
282.0
180.4

186.2
6.0
319.5
235.0

191.9
7.1
298.8
251.3

193.8
7.7
298.6
251.4

194.1
7.9
294.8
252.5

194.3
7.6
293.3
254.2

1,653.3
510.8

1,808.0
618.9

1,939.5
637.9

2,068.2
692.8

2,093.6
731.6

2,103.3
728.5

2,110.8
740.9

2,118.2
749.9

Money market deposit accounts
Commercial Banks
Thrift institutions

230.4
148.5

267.4
150.0

332.5
180.7

379.0
192.4

367.6
185.9

365.2
182.8

364.0
179.5

362.5
176.6

31
36

Savings deposits8
Commercial Banks
Thrift institutions

132.2
172.4

121.4
166.2

123.9
178.8

153.8
211.8

176.6
240.9

178.4
241.9

178.2
240.1

177.9
239.4

37
38

Small denomination time deposits 9
Commercial Banks
Thrift institutions

351.1
433.5

386.7
499.6

383.8
501.5

364.4
489.8

359.7
487.2

363.9
494.9

366.7
499.7

368.9
504.5

39
40

Money market mutual funds
General purpose and broker/dealer
Institution-only

138.2
43.2

167.5
62.7

176.5
65.1

207.6
84.1

209.6
81.3

209.8
83.4

212.8
83.4

216.5
80.7

41
42

Large denomination time deposits 10
Commercial Banks
Thrift institutions

231.6
96.3

271.2
147.3

285.6
151.9

293.2
154.9

311.8
149.8

310.4
150.7

313.0
153.2

315.6
155.6

43
44

Debt components
Federal debt
Nonfederal debt

1,170.2
4,019.5r

1,364.7
4,562.4'

1,583.7
5,156.9r

1,803.3
5,791.6

1,869.1
6,021.4

1,872.4
6,058.4

1,887.4
6,094.7

77
73
74
75
26

Ml
M2
M3
L
Debt

27
28
29
30

Ml components
Currency 2
Travelers checks 3
Demand deposits 4
Other checkable deposits

31
32

Nontransactions components
M26
M3 only7

33
34

For notes see following page.




n.a.
n.a.

A14

DomesticNonfinancialStatistics • December 1987

NOTES TO TABLE 1.21
1. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits
at all commercial banks other than those due to domestic banks, the U.S.
government, and foreign banks and official institutions less cash items in the
process of collection and Federal Reserve float; and (4) other checkable deposits
(OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer
service (ATS) accounts at depository institutions, credit union share draft
accounts, and demand deposits at thrift institutions. The currency and demand
deposit components exclude the estimated amount of vault cash and demand
deposits respectively held by thrift institutions to service their OCD liabilities.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S banks worldwide, MMDAs, savings and smalldenomination time deposits (time deposits—including retail RPs—in amounts of
less than $100,000), and balances in both taxable and tax-exempt general purpose
and broker/dealer money market mutual funds. Excludes individual retirement
accounts (IRA) and Keogh balances at depository institutions and money market
funds. Also excludes all balances held by U.S. commercial banks, money market
funds (general purpose and broker/dealer), foreign governments and commercial
banks, and the U.S. government. Also subtracted is a consolidation adjustment
that represents the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposits.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted
is a consolidation adjustment that represents the estimated amount of overnight
RPs and Eurodollars held by institution-only money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are based on monthly averages.




2. Currency outside the U.S. Treasury, Federal Reserve Banks, and, vaults of
commercial banks. Excludes the estimated amount of vault cash held by thrift
institutions to service their OCD liabilities.
3. Outstanding amount of U.S. dollar-denominated travelers checks of
nonbank issuers. Travelers checks issued by depository institutions are included
in demand deposits.
4. Demand deposits at commercial banks and foreign-related institutions other
than those due to domestic banks, the U.S. government, and foreign banks and
official institutions less cash items in the process of collection and Federal
Reserve float. Excludes the estimated amount of demand deposits held at
commercial banks by thrift institutions to service their OCD liabilities.
5. Consists of NOW and ATS balances at all depository institutions, credit
union share draft balances, and demand deposits at thrift institutions. Other
checkable deposits seasonally adjusted equals the difference between the seasonally adjusted sum of demand deposits plus OCD and seasonally adjusted demand
deposits. Included are all ceiling free "Super NOWs," authorized by the
Depository Institutions Deregulation committee to be offered beginning Jan. 5,
1983.
6. Sum of overnight RPs and overnight Eurodollars, money market fund
balances (general purpose and broker/dealer), MMDAs, and savings and small
time deposits, less the consolidation adjustment that represents the estimated
amount of demand deposits and vault cash held by thrift institutions to service
their time and savings deposits liabilities.
7. Sum of large time deposits, term RPs, and term Eurodollars of U.S.
residents, money market fund balances (institution-only), less a consolidation
adjustment that represents the estimated amount of overnight RPs and Eurodollars held by institution-only money market funds.
8. Savings deposits exclude MMDAs.
9. Smnall-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All individual retirement accounts (IRA) and
Keogh accounts at commercial banks and thrifts are subtracted from small time
deposits.
10. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
11. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
NOTE: Latest monthly and weekly figures are available from the Board's H.6
(508) release. Historical data are available from the Banking Section, Division of
Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.

Monetary and Credit Aggregates

A15

1.22 BANK DEBITS AND DEPOSIT TURNOVER
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.

Bank group, or type of customer

19841

1985'
Apr.

Jan.

May

Seasonally adjusted
Demand deposits
All insured banks
1
2
Major New York City banks
3 Other banks
4 ATS-NOW accounts 3
5 Savings deposits 4

128,440.8
57,392.7
71,048.1
1,588.7
633.1

154,556.0
70,445.1
84,110.9
1,920.8
539.0

189,534.1
91,212.9
98,321.4
2,351.1
410.9

210,574.2
99,357.1
111,217.1
2,255.7
459.2

211,169.4
98,712.3
112,457.1
2,306.0
477.7

217,019.7
104,224.5
112,795.2
2,344.6
468.6

224,603.0
107,159.2
117,443.7
2,384.7
528.0

222,774.5
106,599.1
116,175.4
2,425.1
508.9

212,202.0
100,320.9
111,881.1
2,437.0
568.2

434.4
1,843.0
268.6
15.8
5.0

496.5
2,168.9
301.8
16.7
4.5

561.8
2,460.6
327.4
16.8
3.1

580.3
2,426.4
345.5
13.4
2.9

594.7
2,461.0
357.0
13.5
2.9

613.8
2,707.8
358.0
13.6
2.8

627.0
2,711.5
368.5
13.6
3.1

613.0
2,660.3
359.3
13.9
2.9

594.9
2,713.7
349.9
14.0
3.3

DEPOSIT TURNOVER

6
7
8
9
10

Demand deposits 2
All insured banks
Major New York City banks,
Other banks
ATS-NOW accounts 3
Savings deposits 4

Not seasonally adjusted

DEBITS TO

Demand deposits
11 All insured banks
12 Major New York City banks
13 Other banks
14 ATS-NOW accounts 3
15 MM DA5
16 Savings deposits 4

128,059.1
57,282.4
70,776.9
1,579.5
848.8
632.9

154,108.4
70,400.9
83,707.8
1,903.4
1,179.0
538.7

189,443.3
91,294.4
98,149.0
2,338.4
1,599.3
404.3

216,638.7
102,274.2
114,364.5
2,679.2
1,913.3
499.0

191,572.9
89,866.7
101,706.2
2,173.2
1,600.7
434.6

222,532.0
106,161.2
116,370.8
2,422.7
1,754.4
476.2

229,095.0
108,597.8
120,497.3
2,735.8
2,071.1
570.8

209,229.8
98,828.3
110,401.5
2,420.5
1,786.2
492.4

224,042.8
106,422.2
117,620.6
2,617.4
1,901.2
571.5

433.5
1,838.6
267.9
15.7
3.5
5.0

497.4
2,191.1
301.6
16.6
3.8
4.5

564.0
2,494.3
327.9
16.8
4.5
3.1

579.9
2,345.5
346.6
15.7
5.1
3.1

550.0
2,273.2
329.4
12.9
4.3
2.7

641.0
2,742.6
377.3
14.1
4.7
2.9

635.1
2,755.6
375.0
15.2
5.6
3.4

582.7
2,496.3
345.6
14.0
4.9
2.8

630.0
2,816.8
370.1
15.1
5.2
3.3

DEPOSIT TURNOVER

17
18
19
20
21
22

Demand deposits 2
All insured banks
Major New York City banks.
Other banks
ATS-NOW accounts 3
MM DA
Savings deposits 4

1. Annual averages of monthly figures.
2. Represents accounts of individuals, partnerships, and corporations and of
states and political subdivisions.
3. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts authorized for automatic transfer to demand deposits (ATS). ATS data are
available beginning December 1978.
4. Excludes ATS and NOW accounts, MMDA and special club accounts, such
as Christmas and vacation clubs.
5. Money market deposit accounts.




NOTE. Historical data for demand deposits are available back to 1970 estimated
in part from the debits series for 233 SMSAs that were available through June
1977. Historical data for ATS-NOW and savings deposits are available back to
July 1977. Back data are available on request from the Banking Section, Division
of Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
These data also appear on the Board's G.6 (406) release. For address, see inside
front cover.

A16

DomesticNonfinancialStatistics • December 1987

1.23 LOANS AND SECURITIES

All Commercial Banks1

Billions of dollars; averages of Wednesday figures
1986
Oct.

1987

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Seasonally adjusted
1 Total loans and securities

2

2 U.S. government securities
3 Other securities
4 Total loans and leases2
5 Commercial and industrial
6
Bankers acceptances h e l d 3 . . .
7
Other commercial and
industrial
8
U.S. addressees 4 .
9
Non-U.S. addressees
10 Real estate
11 Individual
12 Security
13 Nonbank financial
institutions
14 Agricultural
15 State and political
subdivisions
16 Foreign banks
17 Foreign official institutions
18 Lease financing receivables
19 All other loans

2,052.4

2,063.5

2,089.8

2,118.3

2,119.7

2,126.2

2,147.3

2,160.6

2,167.1

2,169.5

2,189.0r

2,206.7

299.6
199.8
1,553.0
520.0
6.7

304.1
197.9
1,561.5
525.7
6.4

309.9
196.9
1,583.0
541.4
6.4

316.3
190.2
1,611.8
554.1
6.8

315.2
193.8
1,610.7
553.8
6.8

314.3
195.5
1,616.4
551.7
6.2

315.8
197.2
1,634.3
553.9
6.5

320.1
197.6
1,642.9
555.9
6.8

316.9
198.5
1,651.7
558.0
6.8

319.8
196.9
1,652.8
555.5
6.7

328.6r
194.9r
1,665.5
555.6'
7.5

331.8
194.5
1,680.4
560.6
7.6

513.3
504.6
8.8
474.2
311.2
39.1

519.2
510.7
8.5
479.6
312.6
40.1

535.0
525.7
9.3
489.0
314.2
38.7

547.2
537.8
9.4
499.2
314.9
37.7

546.9
537.9
9.0
504.0
315.2
38.5

545.5
536.9
8.6
511.0
315.7
38.3

547.4
539.0
8.4
517.9
316.6
43.6

549.0
540.9
8.1
526.3
316.7
42.0

551.2
542.8
8.4
537.2
314.5
42.2

548.9r
540.6
8.3
544.1
314.6
41.7

548.1
540.0
8.1
551.3r
316.9
44.0

553.0
544.9
8.1
556.2
318.9
45.0

35.5
32.4

34.9
32.2

35.2
31.8

35.7
31.4

34.7
30.8

35.0
30.0

35.4
29.8

35.4
29.9

33.9
29.9

31.9
30.0

30.9
30.2

30.9
30.2

59.3
10.0
6.0
21.8
43.4

58.7
10.0
5.9
22.0
39.9

57.9
10.4
5.8
22.2
36.4

57.8
10.6
5.9
22.1
42.4

57.2
10.3
6.1
22.2
38.0

57.(y
9.7
6.7
22.3
38.9

56.0
9.9
6.7
22.6
41.9

55.2
9.9
5.8
22.9
43.1

54.4
10.3
5.3
23.1
42.8

53.2
9.4
5.2
23.2
44.0

52.6
9.5
5.1
23.3
46.1

52.4
9.8
5.1
23.8
47.6

Not seasonally adjusted
20 Total loans and securities

2

21 U.S. government securities
22 Other securities
23 Total loans and leases 2
24 Commercial and industrial . . . . .
25
Bankers acceptances held . . .
26
Other commercial and
industrial
U.S. addressees 4 .
27
28
Non-U.S. addressees
29 Real estate
30 Individual
31 Security
32 Nonbank financial
institutions
33 Agricultural
34 State and political
subdivisions
35 Foreign banks
36 Foreign official institutions
37 Lease financing receivables . . . .
38 All other loans

2,044.0

2,064.2

2,105.2

2,123.7

2,121.6

2,127.8

2,148.4

2,157.9

2,166.8

2,164.5

2,180.5

2,204.3

296.1
200.1
1,547.8
517.8
6.6

303.2
198.3
1,562.6
525.2
6.6

308.3
198.1
1,598.7
544.3
6.7

314.6
193.7
1,615.4
552.4
6.7

318.9
194.1
1,608.6
551.7
6.7

317.2
194.4
1,616.2
554.5
6.2

317.7
195.2
1,635.4
556.5
6.4

319.7
196.8
1,641.4
557.5
6.7

317.4
197.1
1,652.4
559.1
6.9

321.0
194.8
1,648.7
554.6
6.8

327.5r
195.3
1,657.7
552.7
7.4

330.5
195.5
1,678.3
559.3
7.7

511.2
502.1
9.1
475.1
312.3
37.8

518.5
509.5
9.1
480.7
313.7
40.4

537.6
528.8
8.8
489.9
317.8
41.0

545.8
537.1
8.7
499.3
317.9
39.4

545.0
536.3
8.7
503.1
314.7
37.5

548.3
539.9
8.4
509.8
313.3
38.6

550.0
541.6
8.4
516.7
314.4
45.1

550.8
542.5
8.3
525.4
314.8
42.0

552.3
543.7
8.6
536.8
313.2
43.0

547.8
539.0
8.8
544.3
313.5
40.9

545.3
536.8
8.5
551.5
316.7
41.5

551.6
543.3
8.4
557.3
319.8
43.4

35.6
33.1

35.4
32.3

36.3
31.5

35.7
30.7

33.8
29.9

33.8
29.1

34.8
29.1

34.9
29.7

33.9
30.3

31.9
30.7

31.1
31.0

31.6
31.1

59.3
10.0
6.0
21.5
39.1

58.7
10.1
5.9
21.8
38.5

57.9
10.9
5.8
22.2
41.2

57.8
10.7
5.9
22.4
43.1

57.2
10.5
6.1
22.4
41.5

57 .(T
9.7
6.7
22.5
41.2

56.0
9.5
6.7
22.7
43.9

55.2
9.6
5.8
22.9
43.6

54.4
10.0
5.3
23.2
43.2

53.2
9.4
5.2
23.1
42.0

52.6
9.3
5.1
23.2'
42.9

52.4
10.0
5.1
23.6
44.7

1. These data also appear in the Board's G.7 (407) release.
2. Excludes loans to commercial banks in the United States.




3. Includes nonfinancial commercial paper held.
4. United States includes the 50 states and the District of Columbia.

Commercial Banking Institutions

A17

1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS 1
Monthly averages, billions of dollars
1987

1986
Source
Oct.
Total nondeposit funds
Seasonally adjusted
Not seasonally adjusted
Federal funds, RPs, and other
borrowings from nonbanks 3
3 Seasonally adjusted
4 Not seasonally adjusted
5 Net balances due to foreign-related
institutions, not seasonally
adjusted
1
2

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

141.4
140.4

145. y
146.9

146.5'
146.6'

155.3
154.8

159.6
162.3

164.1
166.5

161.C
161.1'

169.7'
170.5'

165.9
163.2'

158.5
155.3

164.1
164.2

174.3
173.7

168.7
167.7

167.2
168.8

165.6
165.7

171.0'
170.5'

171.6'
174.3'

170.4'
172.7

171.2
171.4'

169.6
170.4

167.7
165.0

166.1
162.9

165.4
165.5

163.4
162.8

-27.3

-21.9'

-19.0

-15.7'

-ll.ff

-31.9
73.5
41.6

-28.7
70.8
42.1

-30.6
73.3
42.7

-26.1
71.5
45.4

4.6
68.2
72.9

6.9
68.8'
75.6

11.5'
70^
82.5

97.9
97.0

98.1
99.7

17.1
15.3
342.5
343.7

-6.3'

-10.3

.1'

-1.8'

-7.6

-1.3

10.9

-23.8'
68.3
44.5

-21.1
66.0
44.9

-23.0
70.5
47.5

-15.5'
68.5'
53.0'

-15.5'
67.1
51.5

-22.2
66.4
44.2

-17.7
64.5
46.8

-11.8
64.3
52.5

10.4'
75.1'
85.5

11.8
73.0'
84.7

14.8'
71.1
86.0

12.7
72.6
85.3

15.6'
75.4
91.(K

13.7
77.1
90.8

14.6
77.1
91.7

16.4
77.4
93.8

22.7
77.1
99.8

98.5
98.6

101.1
100.6

97.7
100.4

95.1
97.4

98.6
98.7

99.2
100.0

101.5
98.7

102.1
98.9

103.7
103.8

106.0
105.3

23.2
15.3

21.2
19.2

21.3
27.5

23.2
28.6

17.7
17.1

20.7
21.6

26.1
30.8

27.9
25.5

24.7
26.6

29.1
21.6

23.3
25.5

343.2
343.9

345.6
347.0

350.1
351.3

351.1
353.2

354.1
356.4

359.8
357.2

366.2
364.8

372.9
369.8

371.8
368.5

370.8
370.2

370.6
371.9

MEMO

6 Domestically chartered banks' net
positions with own foreign
branches, not seasonally
adjusted
7 Gross due from balances
8 Gross due to balances
9 Foreign-related institutions' net
positions with directly related
institutions, not seasonally
adjusted
10 Gross due from balances
11 Gross due to balances
Security RP borrowings
12 Seasonally adjusted
13 Not seasonally adjusted
U.S. Treasury demand balances
14 Seasonally adjusted
15 Not seasonally adjusted
.
Time deposits, $100,000 or more 8
16 Seasonally adjusted
17 Not seasonally adjusted

1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus agencies and branches of foreign banks. New
York investment companies majority owned by foreign banks, and Edge Act
corporations owned by domestically chartered and foreign banks.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from
nonbanks and not seasonally adjusted net Eurodollars.
3. Other borrowings are borrowings on any instrument, such as a promissory
note or due bill, given for the purpose of borrowing money for the banking
business. This includes borrowings from Federal Reserve Banks and from foreign




banks, term federal funds, overdrawn due from bank balances, loan RPs, and
participations in pooled loans.
4. Averages of daily figures for member and nonmember banks.
5. Averages of daily data.
6. Based on daily average data reported by 122 large banks.
7. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
8. Averages of Wednesday figures.

A18

DomesticNonfinancialStatistics • December 1987

1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Billions of dollars
1986

Last-Wednesday-of-Month Series1

1987

Account
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

2,227.3
475.4
287.3
188.0
28.1
1,723.8
154.7
1,569.1
524.9
481.8
314.1
248.2

2,314.3
479.6
292.6
187.0
27.8
1,807.0
168.9
1,638.1
568.2
497.5
320.4
252.0

2,284.8
482.2
296.1
186.1
26.4
1,776.3
160.1
1,616.2
551.1
499.9
317.0
248.3

2,279.4
484.7
298.8
185.9
29.0
1,765.6
156.7
1,608.9
551.5
503.5
314.7
239.2

2,279.2
486.2
299.5
186.7
25.2
1,767.8
154.3
1,613.5
555.3
510.7
313.1
234.4

2,306.2
492.5
305.1
187.5
23.3
1,790.3
151.8
1,638.5
555.5
519.0
315.2
248.9

2,318.9
495.4
307.0
188.4
21.4
1,802.1
160.4
1,641.7
558.2
527.4
314.8
241.3

2,313.4
493.2
303.4
189.8
20.2
1,800.0
150.9
1,649.1
558.0
539.1
312.6
239.5

2,324.3
497.7
308.2
189.4
20.4
1,806.2
157.5
1,648.7
551.8
547.3
314.5
235.2

2,342.2
501.7
312.7
189.0
20.0
1,820.5
162.5
1,658.0
551.6
552.7
317.2
236.6

2,368.7
502.5
312.8
189.7
19.5
1,846.7
158.1
1,688.5
564.8
559.3
320.9
243.5

227.0
32.2
22.2
86.5

273.7
41.2
25.7
111.3

214.4
33.4
23.7
74.5

206.3
28.4
23.5
71.4

203.8
31.1
22.9
68.1

209.7
29.8
24.0
74.5

230.8
37.9
25.1
81.3

213.1
33.8
24.2
74.4

207.1
32.8
24.4
68.6

209.3
37.6
24.6
65.6

221.1
33.3
24.4
81.3

38.3
47.9

43.3
52.3

34.0
48.8

33.0
50.1

32.7
49.0

33.9
47.5

37.2
49.3

31.1
49.7

31.6
49.6

31.4
50.0

32.6
49.5

A L L COMMERCIAL BANKING
INSTITUTIONS 2

1 Loans and securities
2
Investment securities
3
U.S. government securities
4
Other
5
Trading account assets
6
Total loans
7
Interbank loans
8
Loans excluding interbank
9
Commercial and industrial
10
Real estate
11
Individual
12
All other
13 Total cash assets
14
Reserves with Federal Reserve Banks.
15
Cash in vault
16
Cash items in process of collection . . .
17
Demand balances at U.S. depository
institutions
18
Other cash assets
19 Other assets
20 Total assets/total liabilities and capital....
21
22
23
24
25
26
27

Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)

202.2

224.8

201.3

201.1

202.1

204.0

208.7

203.8

189.0

190.7

200.0

2,656.5

2,812.8

2,700.5

2,686.8

2,685.2

2,719.9

2,758.3

2,730.4

2,720.4

2,742.2

2,789.8

1,900.2
596.3
522.9
781.1
397.4
180.0
178.9

2,018.0
691.1
535.0
791.9
414.5
199.6
180.6

1,898.3
577.8
532.3
788.2
432.7
188.0
181.5

1,895.5
569.2
535.9
790.3
425.6
184.6
181.2

1,899.6
568.8
539.7
791.2
414.9
188.7
181.9

1,919.5
590.7
535.1
793.6
422.7
195.2
182.5

1,939.1
596.9
538.6
803.6
435.6
200.3
183.3

1,923.4
578.2
535.0
810.1
428.3
201.3
177.4

1,924.6
573.7
536.0
814.9
424.0
201.1
170.7

1,926.4
572.6
535.2
818.6
435.1
209.2
171.4

1,968.5
610.7
532.7
825.0
424.0
224.8
172.6

304.8

308.4

314.5

320.1

316.7

318.9

320.6

315.8

322.6

326.3

326.7

198.8

198.9

194.1

193.7

194.7

196.9

196.1

197.6

195.5

195.4

195.3

2,094.7
457.1
279.0
178.2
28.1
1,609.5
133.0
1,476.4
455.7
475.1
313.8
231.8

2,154.4
459.3
283.0
176.3
27.8
1,667.3
137.9
1,529.5
488.2
490.3
320.1
230.9

2,136.7
461.5
286.8
174.8
26.4
1,648.8
134.3
1,514.5
475.5
493.2
316.7
229.2

2,130.3
463.3
289.2
174.1
29.0
1,638.0
130.5
1,507.5
474.1
497.0
314.4
221.9

2,121.7
463.6
289.4
174.2
25.2
1,632.9
124.1
1,508.8
474.6
504.1
312.7
217.4

2,146.9
470.0
295.2
174.8
23.3
1,653.6
124.2
1,529.3
473.5
512.0
314.9
229.0

2,156.2
471.5
296.7
174.8
21.4
1,663.3
128.6
1,534.7
475.3
520.3
314.5
224.7

2,151.9
469.8
294.0
175.9
20.2
1,661.8
121.5
1,540.4
471.7
532.1
312.3
224.3

2,157.7
473.8
298.4
175.4
20.4
1,663.5
122.9
1,540.6
466.0
539.9
314.2
220.6

2,174.9
478.1
302.7
175.3
20.0
1,676.9
129.5
1,547.4
464.7
544.9
316.8
221.0

2,191.2
478.1
302.2
175.9
19.5
1,693.6
124.6
1,569.0
470.8
551.3
320.6
226.3

210.0
29.8
22.2
86.1

253.5
39.7
25.7
110.9

196.6
31.2
23.6
74.0

188.9
27.1
23.5
71.0

186.5
29.7
22.8
67.7

192.5
27.2
24.0
74.0

213.2
35.9
25.0
80.9

195.3
32.1
24.1
73.9

189.1
31.4
24.4
68.1

190.1
36.2
24.6
65.1

201.4
31.0
24.4
80.7

36.3
35.6

40.8
36.4

32.2
35.6

31.1
36.4

31.1
35.2

31.9
35.4

35.1
36.2

29.3
35.9

29.8
35.4

29.8
34.4

30.6
34.7

MEMO

28 U.S. government securities (including
trading account)
29 Other securities (including trading account)
DOMESTICALLY CHARTERED
COMMERCIAL BANKS 3

30 Loans and securities
Investment securities
31
32
U.S. Treasury securities
33
Other
34
Trading account assets
35
Total loans
36
Interbank loans
37
Loans excluding interbank
38
Commercial and industrial
39
Real estate
40
Individual
All other
41
42 Total cash assets
43
Reserves with Federal Reserve Banks.
44
Cash in vault
45
Cash items in process of collection . . .
46
Demand balances at U.S. depository
institutions
47
Other cash assets

141.6

165.0

141.5

144.0

143.4

144.4

143.1

134.4

121.8

121.5

135.8

49 Total assets/liabilities and capital

2,446.3

2,572.8

2,474.8

2,463.2

2,451.5

2,483.8

2,512.5

2,481.5

2,468.7

2,486.5

2,528.4

50
51
52
53
54
55
56

1,844.8
588.2
520.8
735.8
314.1
111.7
175.8

1,957.0
682.2
533.0
741.8
322.9
115.5
177.5

1,840.8
569.4
530.3
741.1
341.7
114.0
178.3

1,838.2
561.3
533.9
743.0
336.1
110.8
178.1

1,840.7
560.5
537.7
742.5
319.1
113.0
178.8

1,857.1
582.2
533.1
741.8
328.2
119.1
179.4

1,876.5
588.4
536.6
751.4
337.1
118.8
180.2

1,861.5
569.7
533.0
758.8
328.6
117.1
174.3

1,863.9
565.6
533.9
764.4
321.1
116.1
167.6

1,864.7
564.3
533.0
767.3
335.8
117.6
168.3

1,906.3
602.0
530.6
773.7
326.5
126.1
169.5

48 Other assets

Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)

1. Data have been revised because of benchmarking to new Call Reports and
new seasonal factors beginning July 1985. Back data are available from the
Banking Section. Board of Governors of the Federal Reserve System, Washington, D.C., 20551.
Figures are partly estimated. They include all bank-premises subsidiaries and
other significant majority-owned domestic subsidiaries. Loan and securities data
for domestically chartered commercial banks are estimates for the last Wednesday of the month based on a sample of weekly reporting banks and quarter-end




condition report data. Data for other banking institutions are estimates made for
the last Wednesday of the month based on a weekly reporting sample of
foreign-related institutions and quarter-end condition reports.
2. Commercial banking institutions include insured domestically chartered
commercial banks, branches and agencies of foreign banks, Edge Act and
Agreement corporations, and New York State foreign investment corporations.
3. Insured domestically chartered commercial banks include all member banks
and insured nonmember banks.

Weekly Reporting
1.26

Commercial

Banks

A19

ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1.4 Billion or More on
December 31, 1982, Assets and Liabilities
Millions of dollars, Wednesday figures
1987

Account
Aug.

5'

Aug.

12

Aug.

19

Aug.

26'

Sept. 2

Sept. 9

Sept. 16

Sept. 23

Sept. 30

1

99,858

95,253'

98,185'

98,661

97,724

110,654

106,592

104,100

104,111

2

998,155

1,000,088'

998,940'

1,001,475

1,003,452

1,006,201

1,009,105

1,011,648

1,014,816

118,689
18,513
100,176
16,490
44,874
38,812
67,163
2,960
64,203
49,790
5,764
44,026
14,413
2,748

116,954
16,111
100,842
16,704
45,352
38,787
67,389'
3,083
64,306 R
49,846
5,555
44,290

118,413
17,200
101,212
16,744
45,606
38,863
67,621'
3,209
64,412'
49,765
5,520
44,245
14,647'
2,735

115,146
13,155
101,991
16,869
45,339
39,783
67,538
3,220
64,318
49,696
5,549
44,147
14,622
3,100

116,957
13,257
103,699
17,087
47,009
39,603
67,790
3,050
64,740
49,550
5,492
44,058
15,190
3,319

119,263
14,088
105,175
17,085
47,967
40,122
67,249
2,720
64,529
49,422
5,436
43,986
15,108
3,239

117,428
13,307
104,121
17,048
47,811
39,263
67,129
2,960
64,169
49,087
5,155
43,932
15,082
2,845

117,536
14,236
103,300
16,932
47,338
39,030
67,121
3,083
64,038
48,976
5,129
43,846
15,062
2,915

115,805
13,881
101,924
17,007
45,594
39,323
68,080
2,932
65,147
48,824
5,166
43,659
16,323
2,683

62,858
36,680
18,646
7,532
785,770
766,301
269,817
2,370
267,447
264,356
3,091

66,323
39,612
21,305
5,406
785,464'
765,990'
269,781'
2,350
267,431'
264,380'
3,050

64,290
37,725
18,923
7,643
784,966'
765,479'
269,304'
2,226
267,077'
263,981'
3,096

68,352
40,236
19,121
8,995
786,475
766,963
268,965
2,166
266,799
263,688
3,111

64,961
35,572
21,310
8,079
789,701
770,186
269,617
2,360
267,257
264,151
3,105

64,174
39,069
18,246
6,858
791,595
772,056
269,562
2,373
267,189
264,121
3,067

66,039
38,844
19,212
7,983
794,979
775,486
271,206
2,346
268,859
265,772
3,088

68,856
40,569
20,748
7,539
794,519
774,982
272,081
2,180
269,900
266,889
3,012

65,237
39,565
17,585
8,086
801,967
782,746
275,165
2,196
272,969
270,031
2,938

232,111
141,658
50,538
22,386
4,905
23,248
13,710
5,623
31,697
2,938
18,208
19,470
4,691
34,383
746,697
121,285

232,826'
141,824'
49,857'
22,238'
4,446
23,172
13,160
5,650'
31,690
2,838
18,364'
19,474'
4,708'
34,333'
746,423'
118,812'

233,915'
142,209'
49,296'
22,051'
4,141
23,104
13,469
5,5%'
31,666'
2,802
17,222'
19,487'
4,725'
34,361'
745,880'
120,870'

234,060
142,722
49,697
21,883
5,241
22,573
14,095
5,643
31,620
2,994
17,166
19,513
4,730
34,406
747,339
120,219

234,225
143,007
49,537
21,841
5,019
22,676
15,678
5,604
31,495
2,912
18,111
19,515
4,725
34,550
750,426
118,980

234,774
143,083
51,052
22,485
5,510
23,057
14,626
5,634
31,454
2,781
19,088
19,540
4,738
34,581
752,277
119,757

236,214
143,291
50,204
21,143
5,606
23,455
16,406
5,620
31,517
2,777
18,250
19,493
4,724
34,590
755,664
116,572

236,552
143,554
48,238
21,016
4,586
22,636
16,111
5,625
31,480
2,843
18,497
19,537
4,754
34,545
755,220
115,748

237,229
143,376
48,706
20,324
4,763
23,619
17,064
5,717
31,685
2,831
20,973
19,220
4,710
34,246
763,011
127,040

1,219,298

1,214,153'

1,217,996'

1,220,355

1,220,156

1,236,612

1,232,269

1,231,496

1,245,967

224,588
172,568
5,567
4,461
24,590
6,511
1,377
9,512
61,794
527,258
490,648
25,376
889
9,548
797
247,312
0
9,131
238,180
81,842

216,760'
171,587'
4,616
2,695
22,867
5,443
1,061
8,490
60,818
526,644'
490,144'
25,439'
892
9,372'
796
249,106'
785
10,545
237,776'
83,809'

219,009
170,586
5,095'
4,041'
23,003
5,844
978
9,462
60,770
526,371
489,753'
25,507'
882
9,435'
794
251,079'
0
15,279
235,800'
84,093'

211,648
163,403
5,329
2,475
23,403
6,611
1,322
9,104
60,382
525,448
488,667
25,587
869
9,514
812
259,050
2,426
16,448
240,176
87,011

224,446
175,618
6,022
1,530
24,072
6,536
1,189
9,479
62,351
525,948
489,147
25,678
777
9,536
809
243,481
0
9,252
234,229
86,660

225,703
175,704
5,098
2,478
26,238
6,833
984
8,367
62,916
525,084
488,297
25,652
832
9,496
806
258,354
787
8,634
248,932
86,862

226,620
174,713
5,761
4,771
24,027
7,162
935
9,250
62,428
524,854
488,185
25,478
813
9,587
790
255,511
161
23,448
231,902
85,421

214,153
166,684
5,731
2,873
20,715
6,103
1,026
11,021
59,809
524,514
487,583
25,704
631
9,780
817
259,738
330
22,009
237,398
95,824

239,687
185,722
6,169
3,098
26,537
6,871
1,000
10,290
60,321
526,449
488,738
25,834
813
10,279
786
247,036
1,148
22,118
223,770
94,514

1,142,794

1,137,137'

1,141,322'

1,143,539

1,142,886

1,158,919

1,154,833

1,154,038

1,168,008

76,504

77,016'

76,674'

76,816

77,270

77,693

77,435

77,457

77,958

978,163
789,563
164,738
1,660
1,105
556
229,602

977,280'
789,937'
164,273
1,652
1,097
555
229,467'

978,250'
789,480'
164,340
1,702
1,158
545
229,053

978,493
792,708
164,230
1,662
1,144
518
228,088

985,314
797,249
163,860
1,739
1,201
537
228,772

983,965
794,214
162,844
1,692
1,159
533
228,905

988,433
801,031
163,353
1,661
1,150
511
227,911

989,362
801,790
164,672
1,720
1,224
495
226,307

993,882
807,315
165,005
1,731
1,243
488
227,091

Cash and balances due from depository institutions
Total loans, leases and securities, net
3 U.S. Treasury and government agency
4
Trading acount
5
Investment account, by maturity
6
One year or less
7
Over one through five years
8
Over five years
9 Other securities
10
Trading account
Investment account
11
17
States and political subdivisions, by maturity
13
One year or less
Over one year
14
IS Other bonds, corporate stocks, and securities
16 Other trading account assets
1
17 Federal funds sold
18
To commercial banks
19
To nonbank brokers and dealers in securities
?0
To others
71 Other loans and leases, gross
Other loans, gross
??
?3
Commercial and industrial
Bankers acceptances and commercial paper
74
?5
All other
76
U.S. addressees
Non-U.S. addressees
27
78
Real estate loans
79
To individuals for personal expenditures
30
To depository and financial institutions
31
Commercial banks in the United States
3?
Banks in foreign countries
33
Nonbank depository and other financial institutions .
For purchasing and carrying securities
34
35
To finance agricultural production
36
To states and political subdivisions
37
To foreign governments and official institutions
38
All other
39 Lease financing receivables
4 0 LESS: U n e a r n e d i n c o m e
Loan and lease reserve
41
4? Other loans and leases, net
43 All other assets
44

Total assets

45 Demand deposits

Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Depository institutions in United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
V
53 Transaction balances other than demand deposits
54 Nontransaction balances
55
Individuals, partnerships and corporations
56
States and political subdivisions
57
U.S. government
58
Depository institutions in the United States
59
Foreign governments, official institutions and banks
6 0 Liabilities for borrowed money
Borrowings from Federal Reserve Banks
61
67
Treasury tax-and-loan notes
63
All other liabilities for borrowed money
Other liabilities and subordinated note and debentures ..
64
65 Total liabilities
3
6 6 Residual (total assets minus total liabilities)

46
47
48
49
50
51

14,46c
2,999

MEMO

67
68
69
70
71
7?
73

Total loans and leases (gross) and investments adjusted 4 . .
Total loans and leases (gross) adjusted
Time deposits in amounts of $100,000 or more
Loans sold outright to affiliates—total
Commercial and industrial
Other
Nontransaction savings deposits (including MMDAs)

1. Includes securities purchased under agreements to resell.
2. 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.
3. This is not a measure of equity capital for use in capital-adequacy analysis or
for other analytic uses.




4. Exclusive of loans and federal funds transactions with domestic commercial
banks.
5. Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of the holding company.

A20

DomesticNonfinancialStatistics • December 1987

1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures except as noted
1987
Account
Aug. 5
1 Cash balances due from depository institutions
2 Total loans, leases and securities, net1
Securities
3 U.S. Treasury and government agency2
4 Trading account 2
5 Investment account, by maturity
6
One year or less
7
Over one through five years
8
Over five years
9 Other securities
10 Trading account 2
Investment account
li
12
States and political subdivisions, by maturity
13
One year or less
14
Over one year
15
Other bonds, corporate stocks and securities
16 Other trading account assets
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43

Loans and leases
Federal funds sold3
To commercial banks
To nonbank brokers and dealers in securities
To others
Other loans and leases, gross
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
Real estate loans
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions
All other
Lease financing receivables
LESS: Unearned income
Loan and lease reserve
Other loans and leases, net
All other assets 4

44 Total assets
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64

Deposits
Demand deposits
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Transaction balances other than demand deposits
(ATS, NOW, Super NOW, telephone transfers)
Nontransaction balances
Individuals, partnerships and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Foreign governments, official institutions and banks
Liabilities for borrowed money
Borrowings from Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money 5
Other liabilities and subordinated note and debentures

65 Total liabilities
66 Residual (total assets minus total liabilities)6

Aug. 12

Aug. 19

Aug. 26

Sept. 2

Sept. 9

Sept. 16

Sept. 23

Sept. 30

23,543

21,626

24,404

26,054

21,515

29,498

25,771

29,470

24,760

208,496

211,188

211,169

216,115

215,139

215,157

215,393

219,799

218,558

0
0
13,985
1,744
5,356
6,885
0
0
16,319
13,541
960
12,580
2,778
0

0
0
14,131
1,874
5,387
6,870
0
0
16,516
13,662
961
12,701
2,853
0

0
0
14,214
1,902
5,542
6,771
0
0
16,571
13,688
979
12,709
2,882
0

0
0
13,753
1,935
4,988
6,830
0
0
16,537
13,674
1,008
12,666
2,862
0

0
0
13,871
1,962
5,128
6,781
0
0
16,644
13,707
1,017
12,689
2,938
0

0
0
14,465
1,981
5,125
7,359
0
0
16,548
13,661
971
12,690
2,886
0

0
0
14,206
2,112
4,718
7,376
0
0
16,532
13,646
942
12,703
2,886
0

0
0
13,991
1,921
4,683
7,386
0
0
16,477
13,607
933
12,674
2,870
0

0
0
14,003
1,950
4,666
7,387
0
0
16,491
13,528
944
12,584
2,963
0

26,954
11,054
10,711
5,189
167,031
162,204
56,538
568
55,970
55,487
482
44,076
21,244
19,700
10,698
2,789
6,214
6,012
320
7,769
814
5,730
4,828
1,497
14,297
151,237
62,522

30,039
13,377
13,172
3,490
166,319
161,478
56,553
478
56,075
55,646
428
44,045
21,371
19,240
10,704
2,362
6,173
5,577
321
7,784
687
5,900
4,841
1,507
14,310
150,502
58,422

29,994
13,439
10,863
5,692
166,202
161,359
56,408
421
55,987
55,497
490
44,248
21,487
18,882
10,851
1,941
6,090
5,857
300
7,784
659
5,733
4,843
1,514
14,299
150,389
60,911

32,910
14,970
11,060
6,880
168,737
163,880
56,415
426
55,990
55,508
481
44,226
21,553
20,202
11,084
3,038
6,081
6,481
318
7,769
845
6,071
4,857
1,518
14,304
152,914
55,943

30,411
11,240
13,105
6,065
170,080
165,209
57,121
473
56,648
56,144
503
44,176
21,696
19,808
10,901
2,731
6,176
7,494
284
7,727
768
6,134
4,871
1,511
14,356
154,213
56,629

28,349
13,428
10,194
4,727
171,725
166,841
57,390
503
56,887
56,433
454
44,330
21,749
21,371
11,818
3,309
6,244
6,610
300
7,714
634
6,742
4,883
1,526
14,404
155,795
55,895

27,471
11,360
10,496
5,616
173,098
168,188
58,221
494
57,727
57,241
486
44,668
21,832
20,685
10,839
3,485
6,361
7,993
302
7,741
647
6,098
4,909
1,527
14,386
157,184
53,305

32,844
15,008
12,477
5,360
172,392
167,457
58,705
463
58,242
57,808
435
44,794
21,939
19,740
10,879
2,493
6,367
7,432
304
7,731
724
6,087
4,935
1,546
14,359
156,487
52,752

29,068
12,688
10,674
5,706
174,841
170,355
59,400
470
58,930
58,509
421
44,675
21,901
20,179
10,936
2,728
6,515
7,897
328
7,839
745
7,390
4,486
1,528
14,317
158,996
57,050

294,560

291,237

296,484

298,112

293,283

300,550

294,470

302,021

300,368

57,563
39,190
703
889
5,748
5,318
1,222
4,493

53,548
37,424
660
464
5,883
4,320
921
3,875

58,174
40,814
719
691
5,891
4,716
842
4,501

55,076
36,296
708
393
6,505
5,550
1,175
4,448

58,230
40,388
956
179
6,192
5,420
1,035
4,060

59,013
40,667
776
407
7,169
5,647
828
3,518

58,501
40,374
842
616
5,683
6,027
783
4,177

59,535
40,715
788
512
5,275
4,984
882
6,378

65,316
44,704
890
547
7,911
5,660
864
4,740

8,117
100,446
91,676
6,824
55
1,499
392
74,631
0
1,958
72,673
31,801

7,976
99,604
90,815
6,868
56
1,475
390
74,885
725
2,419
71,741
32,977

8,011
99,859
91,067
6,800
57
1,549
386
75,135
0
3,875
71,260
33,180

7,956
99,675
90,891
6,746
60
1,583
395
77,091
1,814
3,844
71,433
36,315

8,146
100,360
91,566
6,696
47
1,658
392
67,833
0
2,185
65,648
36,371

8,196
99,921
91,162
6,695
59
1,603
401
75,446
0
2,124
73,321
35,544

8,183
100,493
91,774
6,660
48
1,619
392
68,936
0
5,566
63,370
36,085

7,909
99,342
90,623
6,664
49
1,609
398
71,111
0
5,720
65,391
41,810

8,012
99,769
91,017
6,686
53
1,629
383
64,145
410
5,721
58,015
40,514

272,558

268,989

274,360

276,112

270,940

278,119

272,198

279,707

277,757

22,002

22,248

22,124

22,000

22,344

22,430

22,271

22,315

22,612

202,538
172,234
37,387

202,924
172,277
36,856

202,692
171,907
37,081

205,884
175,594
36,931

208,865
178,350
37,178

205,840
174,828
36,767

209,108
178,370
37,312

209,817
179,349
36,701

210,778
180,284
36,891

MEMO

67 Total loans and leases (gross) and investments adjusted 1,
68 Total loans and leases (gross) adjusted
69 Time deposits in amounts of $100,000 or more

1. Excludes trading account securities.
2. Not available due to confidentiality.
3. Includes securities purchased under agreements to resell.
4. Includes trading account securities.
5. Includes federal funds purchased and securities sold under agreements to
repurchase.




6. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
7. Exclusive of loans and federal funds transactions with domestic commercial
banks.
NOTE. These data also appear in the Board's H.4.2 (504) release. For address,
see inside front cover.

Weekly Reporting

Commercial

1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS 1
Liabilities

Banks

A21

Assets and

Millions of dollars, Wednesday figures
1987

Account
Aug.

37
38
39
40

Cash and due from depository institutions . . .
Total loans and securities
U.S. Treasury and govt, agency securities . . .
Other securities
Federal funds sold2
To commercial banks in the 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 the United States..
Banks in foreign countries
Nonbank financial institutions
To foreign govts, and official institutions ..
For purchasing and carrying securities . . . .
All other
Other assets (claims on nonrelated parties) ..
Net due from related institutions
Total assets
Deposits or credit balances due to other
than directly related institutions
Transaction accounts and credit balances .
Individuals, partnerships, and
corporations
Other
Nontransaction accounts
Individuals, partnerships, and
corporations
Other
Borrowings from other than directly
related institutions
Federal funds purchased
From commercial banks in the
United States
From others
Other liabilities for borrowed money
To commercial banks in the
United States
To others
Other liablities to nonrelated parties
Net due to related institutions
Total liabilities

41
42

Total loans (gross) and securities adjusted
Total loans (gross) ajdusted

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36

5

Aug.

12

Aug.

19

Aug.

26

Sept. 2

Sept. 9

Sept. 16

Sept. 23

Sept. 30

10,301
92,238
6,946
8,218
5,935
4,978
957
71,139
46,390

10,746
93,722
6,860
8,211
7,499
6,499
1,000
71,152
46,611

10,569
93,771
6,977
8,216
6,936
5,664
1,272
71,640
46,576

11,252
95,251
6,853
8,069
9,186
7,938
1,248
71,143
46,101

9,187
93,941
7,425
7,913
7,472
6,090
1,382
71,131
46,454

10,762
96,792
7,204
7,915
8,891
7,271
1,620
72,782
47,598

10,253
98,290
7,391
7,914
8,078
6,206
1,872
74,907
49,447

10,248
99,592
7,970
7,860
9,224
7,296
1,927
74,539
49,183

11,359
99,784
7,306
8,060
7,188
5,683
1,505
77,231
50,415

3,751
42,639
40,048
2,590
16,070
12,526
923
2,622
265
2,022
6,392
27,351
17,648
147,538

3,783
42,828
40,312
2,515
15,877
12,245
996
2,635
370
1,910
6,385
27,735
18,560
150,763

3,935
42,640
40,130
2,510
16,088
12,407
983
2,698
371
2,275
6,331
27,806
17,211
149,357

3,856
42,245
39,788
2,458
15,713
12,102
951
2,660
362
2,265
6,701
27,866
16,843
151,212

3,834
42,620
40,248
2,371
15,222
11,340
986
2,896
355
2,379
6,721
27,887
17,145
148,160

3,986
43,612
41,114
2,498
15,204
11,280
1,042
2,881
424
2,805
6,750
27,771
15,632
150,958

4,116
45,331
42,913
2,418
15,748
11,850
1,079
2,818
356
2,765
6,592
27,718
16,690
152,950

3,951
45,232
42,825
2,407
16,047
11,986
1,138
2,923
342
2,184
6,783
28,140
16,138
154,120

4,019
46,396
43,994
2,401
16,743
12,509
1,354
2,880
385
2,875
6,814
28,477
15,173
154,794

42,637
3,286

43,005
3,376

42,609
3,322

43,110
3,414

43,044
3,360

43,744
3,658

43,601
3,394

44,098
3,536

43,425
3,628

2,266
1,020
39,351

2,185
1,191
39,629

2,160
1,162
39,287

2,187
1,227
39,696

2,129
1,231
39,684

2,302
1,356
40,086

2,163
1,230
40,207

2,114
1,422
40,562

2,086
1,542
39,796

32,019
7,332

32,198
7,430

31,948
7,339

32,230
7,466

32,244
7,440

32,569
7,517

32,788
7,419

33,323
7,238

32,501
7,296

58,072
27,235

58,297
27,999

56,383
26,739

57,000
27,201

53,897
25,347

53,023
24,419

56,222
26,872

54,777
25,092

54,877
24,856

14,982
12,253
30,836

16,231
11,767
30,298

14,720
12,019
29,644

15,931
11,271
29,798

12,817
12,530
28,549

13,103
11,315
28,604

14,356
12,516
29,349

12,190
12,902
29,684

13,183
11,673
30,021

25,462
5,374
31,047
15,782
147,538

24,361
5,937
31,732
17,729
150,763

23,848
5,796
32,193
18,172
149,357

23,984
5,814
31,212
19,890
151,212

22,368
6,181
31,132
20,088
148,160

22,452
6,152
31,489
22,702
150,958

22,283
7,066
31,264
21,863
152,950

22,975
6,710
32,646
22,599
154,120

23,675
6,346
32,543
23,948
154,794

74,734
59,570

74,978
59,906

75,699
60,505

75,211
60,289

76,511
61,172

78,241
63,121

80,234
64,929

80,310
64,481

81,592
66,227

MEMO

..

1. Effective Jan. 1, 1986, the reporting panel includes 65 U.S. branches and
agencies of foreign banks that include those branches and agencies with assets of
$750 million or more on June 30, 1980, plus those branches and agencies that had
reached the $750 million asset level on Dec. 31, 1984.
2. Includes securities purchased under agreements to resell.
3. Includes credit balances, demand deposits, and other checkable deposits.




4. Includes savings deposits, money market deposit accounts, and time deposits.
5. Includes securities sold under agreements to repurchase.
6. Exclusive of loans to and federal funds sold to commercial banks in the
United States.

A22

DomesticNonfinancialStatistics • December 1987

1.31 GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations1
Billions of dollars, estimated daily-average balances, not seasonally adjusted
Commercial banks
1986

Type of holder
1982
Dec.

1983
Dec.

1984
Dec.

1987

1985
Dec. 5 4
Mar.

June

Sept.

Dec.

Mar.

June

1 All holders—Individuals, partnerships, and
corporations

291.8

293.5

302.7

321.0

307.4

322.4

333.6

363.6

335.9

340.2

2
3
4
5
6

35.4
150.5
85.9
3.0
17.0

32.8
161.1
78.5
3.3
17.8

31.7
166.3
81.5
3.6
19.7

32.3
178.5
85.5
3.5
21.2

31.8
166.6
84.0
3.4
21.6

32.3
180.0
86.4
3.0
20.7

35.9
185.9
86.3
3.3
22.2

41.4
202.0
91.1
3.3
25.8

35.9
183.0
88.9
2.9
25.2

36.6
187.2
90.1
3.2
23.1

Financial business
Nonfinancial business
Consumer
Foreign
Other

Weekly reporting banks

1982
Dec.

7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12

Financial business
Nonfinancial business
Consumer
Foreign
Other

1983
Dec.

19S
h
Dec. 3 4

1986

1987

Mar.

June

Sept.

Dec.

Mar.

June

144.2

146.2

157.1

168.6

159.7

168.5

174.7

195.1

178.1

179.3

26.7
74.3
31.9
2.9
8.4

24.2
79.8
29.7
3.1
9.3

25.3
87.1
30.5
3.4
10.9

25.9
94.5
33.2
3.1
12.0

25.5
86.8
32.6
3.3
11.5

25.7
93.1
34.9
2.9
11.9

28.9
94.8
35.0
3.2
12.8

32.5
106.4
37.5
3.3
15.4

28.7
94.4
36.8
2.8
15.5

29.3
94.8
37.5
3.1
14.6

1. Figures include cash items in process of collection. Estimates of gross
deposits are based on reports supplied by a sample of commercial banks. Types
of depositors in each category are described in the June 1971 BULLETIN, p. 466.
Figures may not add to totals because of rounding.
2. Beginning in March 1984, these data reflect a change in the panel of weekly
reporting banks, and are not comparable to earlier data. Estimates in billions of
dollars for December 1983 based on the new weekly reporting panel are: financial
business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1; other
9.5.
3. Beginning March 1985, financial business deposits and, by implication, total
gross demand deposits have been redefined to exclude demand deposits due to




1984
Dec. 2

thrift institutions. Historical data have not been revised. The estimated volume of
such deposits for December 1984 is $5.0 billion at all insured commercial banks
and $3.0 billion at weekly reporting banks.
4. Historical data back to March 1985 have been revised to account for
corrections of bank reporting errors. Historical data before March 1985 have not
been revised, and may contain reporting errors. Data for all commercial banks for
March 1985 were revised as follows (in billions of dollars): all holders, - . 3 ;
financial business, - . 8 ; nonfinancial business, - . 4 ; consumer, .9; foreign, .1;
other, - . 1 . Data for weekly reporting banks for March 1985 were revised as
follows (in billions of dollars): all holders, - . 1 ; financial business, - . 7 ;
nonfinancial business, - . 5 ; consumer, 1.1; foreign, .1; other, - . 2 .

Financial Markets

A23

1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1987
1982
Dec.

Instrument

1983
Dec.

1984
Dec.

1985
Dec.

1986
Dec.
Mar.

Apr.

May

June

July

Aug.

Commercial paper (seasonally adjusted unless noted otherwise)
166,436

1 All issuers

2
3
4
5
6

Financial companies3
Dealer-placed paper4
Total
Bank-related (not seasonally
adjusted)
Directly placed paper1
Total
Bank-related (not seasonally
adjusted)
Nonfinancial companies6

187,658

237,586

300,899

331,016

338,797

346,769

354,249

348,741

348,247

352,737

34,605

44,455

56,485

78,443

100,207

102,889

103,957

105,397

108,691

107,709

110,714

2,516

2,441

2,035

1,602

2,265

2,116

2,307

2,429

2,430

2,311

2,404

84,393

97,042

110,543

135,504

152,385

159,333

163,421

169,225

161,921

162,185

163,620

32,034
47,437

35,566
46,161

42,105
70,558

44,778
86,952

40,860
78,424

46,634
76,575

48,604
79,391

48,401
79,627

47,862
78,129

46,354
78,353

45,487
78,403

Bankers dollar acceptances (not seasonally adjusted) 7
79,543

11
12
13

68,413

64,974

66,125

66,660

67,765

69,622

68,495

68,419

9,355
8,125
1,230

9,811
8,621
1,191

11,197
9,471
1,726

13,423
11,707
1,716

12,294
10,516
1,730

11,118
9,721
1,396

11,201
9,569
1,631

11,234
9,661
1,573

10,664
9,630
1,035

10,847
9,882
965

418
729
67,807

0
671
67,881

0
937
56,279

0
1,317
50,234

0
1,453
52,255

0
1,519
54,024

0
1,547
55,017

0
1,717
56,671

0
1,463
56,367

0
1,397
56,175

17,683
16,328
45,531

Basis
14 Imports into United States
15 Exports from United States
16 All other

8
9
10

78,364

1,480
949
66,204

Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others

78,309

10,910
9,471
1,439

7 Total

15,649
16,880
45,781

17,845
16,305
44,214

15,147
13,204
40,062

14,670
12,960
37,344

14,711
13,083
38,159

15,095
13,826
37,800

15,361
14,028
38,376

16,179
14,161
39,281

17,431
14,659
36,405

17,079
14,902
36,438

1. Effective Dec. 1, 1982, there was a break in the commercial paper series.
The key changes in the content of the data involved additions to the reporting
panel, the exclusion of broker or dealer placed borrowings under any master note
agreements from the reported data, and the reclassification of a large portion of
bank-related paper from dealer-placed to directly placed.
2. Correction of a previous misclassification of paper by a reporter has created
a break in the series beginning December 1983. The correction adds some paper
to nonfinancial and to dealer-placed financial paper.
3. Institutions engaged primarily in activities such as, but not limited to,
commercial savings, and mortgage banking; sales, personal, and mortgage financing; factoring, finance leasing, and other business lending; insurance underwriting; and other investment activities.

4. Includes all financial company paper sold by dealers in the open market.
5. As reported by financial companies that place their paper directly with
investors.
6. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
7. Beginning October 1984, the number of respondents in the bankers acceptance survey were reduced from 340 to 160 institutions—those with $50 million or
more in total acceptances. The new reporting group accounts for over 95 percent
of total acceptances activity.

1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per annum
Average
rate

Effective Date
8.00

1986—July 11
Aug. 20

7.50

9.00
8.50

1987—Apr. 1
May 1.
15.

7.75
8.00
8.25

NOTE. These data also appear in the Board's H.15 (519) release. For address,
see inside front cover.




1985—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

10.61
10.50
10.50
10.50
10.31
9.78
9.50
9.50
9.50
9.50
9.50
9.50

1986—Jan. .
Feb.
Mar.
Apr.

10.50
10.00
9.50

9.50
9.50
9.10
8.83

Month
1986—May .
June
July .
Aug.
Sept.
Oct. .
Nov.
Dec.
1987—Jan. .
Feb.
Mar.
Apr.
May .
June
July .
Aug.

A24

DomesticNonfinancialStatistics • December 1987

1.35 INTEREST RATES Money and Capital Markets
Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.
1987
Instrument

1984

1985

1987, week ending

1986
June

July

Aug.

Sept.

Aug. 28

Sept. 4

Sept. 11 Sept. 18 Sept. 25

MONEY MARKET RATES

1 Federal funds 1 ' 2
2 Discount widow borrowing 1,2,3
Commercial paper ,5
3 1-month
4 3-month
5 6-month
Finance paper, directly placed 4,5
6 1-month
7 3-month
8 6-month
Bankers acceptances 5 ' 6
9 3-month
10 6-month
Certificates of deposit, secondary market7
11
1-month
12 3-month
13 6-month
14 Eurodollar deposits. 3-month8
U.S. Treasury bills
Secondary market9
15 3-month
16 6-month
17 1-year
Auction average u
18 3-month
19 6-month
20 1-year

10.22
8.80

8.10
7.69

6.80
6.33

6.73
5.50

6.58
5.50

6.73
5.50

7.22
5.95

6.76
5.50

6.85
5.50

6.95
5.93

7.21
6.00

7.26
6.00

10.05
10.10
10.16

7.94
7.95
8.01

6.62
6.49
6.39

6.86
6.92
7.00

6.57
6.65
6.72

6.62
6.71
6.81

7.26
7.37
7.55

6.64
6.72
6.83

6.87
6.96
7.12

7.29
7.40
7.61

7.35
7.45
7.63

7.34
7.44
7.62

9.97
9.73
9.65

7.91
7.77
7.75

6.58
6.38
6.31

6.80
6.77
6.50

6.53
6.48
6.35

6.56
6.49
6.34

7.20
7.08
6.90

6.56
6.55
6.36

6.75
6.68
6.43

7.23
7.08
6.85

7.25
7.10
6.99

7.32
7.27
7.09

10.14
10.19

7.92
7.96

6.39
6.29

6.83
6.91

6.59
6.65

6.64
6.75

7.31
7.48

6.69
6.83

6.97
7.09

7.31
7.51

7.35
7.53

7.37
7.53

10.17
10.37
10.68
10.73

7.97
8.05
8.25
8.28

6.61
6.52
6.51
6.71

6.84
6.94
7.15
7.11

6.60
6.70
6.87
6.87

6.63
6.75
7.02
6.91

7.25
7.37
7.74
7.51

6.65
6.77
7.05
6.91

6.86
7.00
7.31
7.11

7.25
7.38
7.78
7.40

7.33
7.41
7.81
7.44

7.35
7.43
7.79
7.54

9.52
9.76
9.92

7.48
7.65
7.81

5.98
6.03
6.08

5.67
5.99
6.35

5.69
5.76
6.24

6.04
6.15
6.54

6.40
6.64
7.11

6.24
6.25
6.65

6.21
6.36
6.89

6.39
6.53
7.16

6.36
6.65
7.10

6.48
6.79
7.14

9.57
9.80
9.91

7.49
7.66
n.a.

5.97
6.02
n.a.

5.69
5.99
6.54

5.78
5.86
6.22

6.00
6.14
6.52

6.32
6.57
6.74

6.12
6.16
n.a.

6.19
6.34
n.a.

6.45
6.72
6.74

6.32
6.64
n.a.

n.a.
n.a.
n.a.

10.89
11.65
11.89
12.24
12.40
12.44
12.48
12.39

8.43
9.27
9.64
10.13
10.51
10.62
10.97
10.79

6.46
6.87
7.06
7.31
7.55
7.68
7.85
7.80

6.80
7.57
7.82
8.02
8.27
8.40
n.a.
8.57

6.68
7.44
7.74
8.01
8.27
8.45
n.a.
8.64

7.03
7.75
8.03
8.32
8.59
8.76
n.a.
8.97

7.67
8.34
8.67
8.94
9.26
9.42
n.a.
9.59

7.16
7.89
8.13
8.41
8.67
8.85
n.a.
9.04

7.41
8.11
8.41
8.69
9.00
9.18
n.a.
9.36

7.72
8.39
8.70
8.96
9.29
9.43
n.a.
9.60

7.65
8.31
8.64
8.94
9.27
9.43
n.a.
9.61

7.70
8.37
8.71
8.97
9.29
9.45
n.a.
9.61

11.99

10.75

8.14

8.63

8.70

8.97

9.58

9.04

9.35

9.60

9.61

9.60

9.61
10.38
10.10

8.60
9.58
9.11

6.95
7.76
7.32

7.48
8.68
7.79

7.18
8.37
7.72

7.24
8.31
7.81

7.66
8.67
8.26

7.20
8.30
7.80

7.45
8.60
8.05

7.75
8.90
8.38

7.70
8.85
8.32

7.75
8.35
8.30

13.49
12.71
13.31
13.74
14.19

12.05
11.37
11.82
12.28
12.72

9.71
9.02
9.47
9.95
10.39

9.87
9.32
9.65
9.98
10.52

9.92
9.42
9.64
10.00
10.61

10.24
9.67
9.86
10.20
10.80

10.64
10.18
10.35
10.72
11.31

10.14
9.70
9.86
10.19
10.82

10.32
9.87
10.05
10.35
11.00

10.58
10.15
10.31
10.64
11.23

10.75
10.28
10.44
10.85
11.40

10.74
10.25
10.42
10.85
11.42

13.81

12.06

9.61

10.05

10.17

10.37

10.84

10.44

10.60

10.86

10.93

11.00

11.59
4.64

10.49
4.25

8.76
3.48

8.31
2.92

8.25
2.83

8.32
2.69

8.64
2.78

8.38
2.64

8.55
2.75

8.62
2.82

8.67
2.81

8.67
2.77

CAPITAL MARKET RATES

21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38

U.S. Treasury notes and bonds 11
Constant maturities
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
Composite
Over 10 years (long-term)
State and local notes and bonds
Moody's series14
Aaa
Baa
Bond Buyer series15
Corporate bonds 16
Seasoned issues
All industries
Aaa
Aa
A
Baa
A-rated, recently-offered utility
bonds 17

MEMO: Dividend/price ratio18
39 Preferred stocks
40 Common stocks

1. Weekly and monthly figures are averages of all calendar days, where the
rate for a weekend or holiday is taken to be the rate prevailing on the preceding
business day. The daily rate is the average of the rates on a given day weighted by
the volume of transactions at these rates.
2. Weekly figures are averages for statement week ending Wednesday.
3. Rate for the Federal Reserve Bank of New York.
4. Unweighted average of offering rates quoted by at least five dealers (in the
case of commercial paper), or finance companies (in the case of finance paper).
Before November 1979, maturities for data shown are 30-59 days, 90-119 days,
and 120-179 days for commercial paper; and 30-59 days, 90—119 days, and
150-179 days for finance paper.
5. Yields are quoted on a bank-discount basis, rather than in an investment
yield basis (which would give a higher figure).
6. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quoted by the dealers).
7. Unweighted average of offered rates quoted by at least five dealers early in
the day.
8. Calendar week average. For indication purposes only.
9. Unweighted average of closing bid rates quoted by at least five dealers.
10. Rates are recorded in the week in which bills are issued. Beginning with the
Treasury bill auction held on Apr. 18, 1983, bidders were required to state the
percentage yield (on a bank discount basis) that they would accept to two decimal




places. Thus, average issuing rates in bill auctions will be reported using two
rather than three decimal places.
11. Yields are based on closing bid prices quoted by at least five dealers.
12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields
are read from a yield curve at fixed maturities. Based on only recently issued,
actively traded securities.
13. Averages (to maturity or call) for all outstanding bonds neither due nor
callable in less than 10 years, including one very low yielding "flower" bond.
14. General obligations based on Thursday figures; Moody's Investors Service.
15. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
16. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
17. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of
call protection. Weekly data are based on Friday quotations.
18. Standard and Poor's corporate series. Preferred stock ratio based on a
sample often issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
NOTE. These data also appear in the Board's H.15 (519) and G.13 (415) releases.
For address, see inside front cover.

Financial Markets
1.36 STOCK MARKET

A25

Selected Statistics
1987
1984

Indicator

1985

1986
Jan.

Feb.

Mar.

May

Apr.

June

July

Aug.

Sept.

Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2
Industrial
Transportation
3
4
Utility
5
Finance
6 Standard & Poor's Corporation (1941-43
= 10)1
7 American Stock Exchange
(Aug. 31, 1973 = 50)

92.46
108.01
85.63
46.44
89.28

108.09
123.79
104.11
56.75
114.21

136.00
155.85
119.87
71.36
147.19

151.17
175.60
126.61
78.54
153.32

160.23
189.17
135.49
78.19
158.41

166.43
198.95
138.55
77.15
162.41

163.88
199.03
137.91
72.74
150.52

163.00
198.78
141.30
71.64
145.97

169.58
206.61
150.39
74.25
152.73

174.28
214.12
157.49
74.18
152.27

184.18
226.49
164.02
78.20
160.94

178.39
219.52
158.58
76.13
154.08

160.50

186.84

236.34

264.51

280.93

292.47

289.32

289.12

301.36

310.09

329.36

318.66

207.96

229.10

264.38

289.02

315.60

332.55

330.65

328.77

334.49

348.68

361.52

353.72

91,084
6,107

109,191
8,355

141,385
11,846

192,419
14,755

183,478
14,962

180,251
15,678

187,135
14,420

170,898
11,655

163,380
12,813

180,356
12,857

193,477
13,604

177,287
12,381

2

Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange

Customer financing (end-of-period balances, in millions of dollars)
10 Margin credit at broker-dealers

3

Free credit balances at brokers4
11 Margin-account
12 Cash-account

22,470

28,390

36,840

34,960

35,740

38,080

39,820

38,890

38,420

40,250

41,640

44,170

1,755
10,215

2,715
12,840

4,880
19,000

5,060
17,395

4,470
17,325

4,730
17,370

4,660
17,285

4,355
16,985

3,680
15,405

4,095
15,930

4,240
16,195

4,270
15,895

Margin requirements (percent of market value and effective date) 6
Mar. 11, 1968
13 Margin stocks
14 Convertible bonds
15 Short sales

June 8, 1968

May 6, 1970

Dec. 6, 1971

Nov. 24, 1972

Jan. 3, 1974

70
50
70

80
60
80

65
50
65

55
50
55

65
50
65

50
50
50

1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Beginning July 5, 1983, the American Stock Exchange rebased its index
effectively cutting previous readings in half.
3. Beginning July 1983, under the revised Regulation T, margin credit at
broker-dealers includes credit extended against stocks, convertible bonds, stocks
acquired through exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds,
and subscription issues was discontinued in April 1984.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
5. New series beginning June 1984.
6. These regulations, adopted by the Board of Governors pursuant to the
Securities Exchange Act of 1934, limit the amount of credit to purchase and carry




"margin securities" (as defined in the regulations) when such credit is
collateralized by securities. Margin requirements on securities other than options
are the difference between the market value (100 percent) and the maximum loan
value of collateral as prescribed by the Board. Regulation T was adopted effective
Oct. 15, 1934; Regulation U, effective May 1,1936; Regulation G, effective Mar.
11, 1968; and Regulation X, effective Nov. 1, 1971.
On Jan. 1, 1977, the Board of Governors for the first time established in
Regulation T the initial margin required for writing options on securities, setting
it at 30 percent of the current market-value of the stock underlying the option. On
Sept. 30,1985, the Board changed the required initial margin, allowing it to be the
same as the option maintenance margin required by the appropriate exchange or
self-regulatory organization; such maintenance margin rules must be approved by
the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC
approved new maintenance margin rules, permitting margins to be the price of the
option plus 15 percent of the market value of the stock underlying the option.

A26
1.37

DomesticNonfinancialStatistics • December 1987
SELECTED FINANCIAL INSTITUTIONS

Selected Assets and Liabilities

Millions of dollars, end of period
1986
Account

1984

1987

1985
Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June'

July

Savings and loan associations
1 Assets

903,488

948,781

957,229

961,894

964,096

963,316

935,516

936,877r 939,745' 944,204' 352,638' 948,993

949,336

7 Mortgage-backed securities
3 Cash and investment securities1
4 Other

124,801
223,396

97,303
126,712
238,833

117,617
138,619
261,415

121,606
138,213
250,781

122,682
141,510
250,297

123,257
142,700
251,769

129,340
132,733
261,869

128,856'' 127,284' 134,750 141,038' 140,590
135,884' 138,721' 136,369' 138,293' 137,769
263,782 266,508 274,781 283,696 285,578

140,646
138,452
287,773

5 Liabilities and net worth

903,488

948,781

957,229

961,894

964,096

963,316

935,516

936,877' 939,745' 944,204' 352,638' 948,993

949,336

725,045
125,666
64,207
61,459
17,944

750,071
138,798
73,888
64,910
19,045

743,518
155,748
80,364
75,384
15,461

742,747
152,567
75,295
77,272
23,255

740,066
156,920
75,626
81,294
24,078

741,081
159,742
80,194
79,548
20,071

721,759
153,373
75,552
77,821
19,773

722,276' 722,601' 716,83c 718,662 715,659
152,173' 158,175' 165,881' 171,277' 175,073
79,184
75,671' 76,469' 77,857' 78,583
76,502' 81,706' 88,024' 92,694' 95,889
19,510
21,823' 18,924' 20,781' 22,541'

761,391
174,153
78,884
95,269
20,656

34,833

41,064

42,503

43,326

43,034

42,423

40,606

6 Savings capital
7 Borrowed money
8 FHLBB
9 Other
10 Other
11 Net worth 2

40,601'

40,044'

40,703'

40,151'

38,747

38,130

253,007' 264,077

268,930

144,588
39,381'
17.20C

150,427
41,054
17,940

152,888
42,725
17,665

FSLIC-insured federal savings banks
12 Assets

98,559

131,868

196,225

202,106

204,918

210,562

235,428

235,763r 241,419

13 Mortgages
14 Mortgage-backed securities
15 Other

57,429
9,949
10,971

72,355
15,676
11,723

108,627
26,431
18,509

110,826
27,516
18,697

112,117
28,324
19,266

113,638
29,766
19,034

136,770
33,570
15,769

136,489 138,864' 140,861
34,634
36,104
37,511
16,06C 16,608' 17,032

246,277

16 Liabilities and net worth

98,559

131,868

196,225

202,106

204,918

210,562

235,428

235,763' 241,419

253,007' 264,077

268,930

17
18
19
?0
71
22

79,572
12,798
7,515
5,283
1,903
4,286

103,462
19,323
10,510
8,813
2,732
6,351

149,074
32,319
16,853
15,466
4,666
10,165

152,834
33,430
17,382
16,048
5,330
10,511

154,447
33,937
17,863
16,074
5,652
10,883

157,872
37,329
19,897
17,432
4,263
11,098

176,741
40,614
20,730
19,884
5,304
12,774

178,676' 178,676' 180,637' 182,802' 189,998
39,777
43,915
46,125
53,214
49,896
21,104
20,226
21,718
22,788
24,486
19,551
22,811
24,407
27,108
28,728
5,480
5,265'
5,547'
6,044'
5,983
13,151
13,564
13,978' 14,272
14,887

193,890
53,700
24,981
28,719
6,143
15,202

Savings capital
Borrowed money
FHLBB
Other
Other
Net worth

246,277

Savings banks
23 Assets

203,898

216,776

228,854

230,919

232,577

236,866

235,603

238,074

240,739

243,454

245,906

244,760

246,833

102,895
24,954

110,448
30,876

114,188
37,298

116,648
36,130

117,612
36,149

118,323
35,167

119,199
36,122

119,737
37,207

121,178
38,012

122,769
37,136

124,936
37,313

128,217
35,200

129,624
35,591

14,643
19,215
2,077
23,747
4,954
11,413

13,111
19,481
2,323
21,199
6,225
13,113

12,357
23,216
2,407
20,902
4,811
13,675

12,585
23,437
2,347
21,156
5,195
13,421

13,037
24,051
2,290
20,749
5,052
13,637

14,209
25,836
2,185
20,459
6,894
13,793

13,332
26,220
2,180
19,795
5,239
13,516

13,525
26,893
2,168
19,770
5,143
13,631

13,631
27,463
2,041
19,598
5,703
13,713

13,743
28,700
2,063
19,768
5,308
13,967

13,650
28,739
2,053
19,956
5,176
14,083

13,549
27,785
2,059
18,803
4,939
14,208

13,498
28,252
2,050
18,821
4,806
14,191

32 Liabilities

203,898

216,776

228,854

230,919

232,577

236,866

235,603

238,074

240,739

243,454

245,906

244,760

246,833

33 Deposits
34 Regular
Ordinary savings
35
36
Time
37 Other
38 Other liabilities
39 General reserve accounts

180,616
177,418
33,739
104,732
3,198
12,504
10,510

185,972
181,921
33,018
103,311
4,051
17,414
12,823

190,210
185,002
35,227
102,191
5,208
21,947
16,319

190,334
185,254
36,165
101,125
5,080
23,319
16,896

190,858
185,958
36,739
101,240
4,900
24,254
17,146

192,194
186,345
37,717
100,809
5,849
25,274
18,105

191,441
186,385
38,467
100,604
5,056
24,710
18,236

192,559
187,597
39,370
100,922
4,962
25,663
18,486

193,693
188,432
40,558
100,896
5,261
27,003
18,830

193,347
187,791
41,326
100,308
5,556
29,105
19,423

194,742
189,048
41,967
100,607
5,694
30,436
19,603

193,274
187,669
42,178
100,604
5,605
30,515
19,549

194,549
188,783
41,928
102,603
5,766
31,655
19,718

24
25
26
27
28
29
30
31

Loans
Mortgage
Other
Securities
U.S. government
Mortgage-backed securities . .
State and local government ..
Corporate and other
Cash
Other assets




Financial Markets

All

1.37—Continued
1987

1986
Account

1984

1985
Sept.

Oct.

Nov.

Jan.

Dec.

Feb.

Mar.

Apr.

May

June r

July

Credit unions 4
40 Total assets/liabilities and capital.

93,036

118,010

140,496

143,662

145,653

147,726

149,383

149,751

153,253

154,549

156,086

160,644

41
42

63,205
29,831

77,861
40,149

91,981
48,515

93,257
50,405

94,638
51,015

95,483
52,243

96,801
52,586

96,753
52,998

98,799
54,454

99,751
54,798

100,153
55,933

104,150
56,494

62,561
42,337
20,224
84,348
57,539
26,809

73,513
47,933
25,580
105,963
70,926
35,037

81,820
53,042
28,778
128,125
84,607
43,518

83,388
53,434
29,954
130,483
86,158
44,325

84,635
53,877
30,758
131,778
87,009
44,769

86,137
55,304
30,833
134,327
87,954
46,373

85,984
55,313
30,671
135,907
89,717
46,130

85,651
54,912
30,739
136,441
89,485
46,956

86,101
55,118
30,983
138,810
91,042
47,768

87,089
55,740
31,349
140,014
92,012
48,002

87,765
55,952
31,813
141,635
97,189
49,248

90,912
28,432
32,480
148,283
96,137
52,146

Federal
State

43 Loans outstanding
Federal
44
45
State
46 Savings
47
Federal
48
State

n a.

Life insurance companies
49 Assets

50
51
52
53
54
55
56
57
58
59
60

Securities
Government
United States 5
State and local
Foreign 6
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets

722,979

825,901

892,304

860,682

910,691

937,551r 948,665' 961,937' 978,455'

978,455

985,942

995,576

63,899
42,204
8,713
12,982
359,333
295,998
63,335
156,699
25,767
54,505
63,776

75,230
51,700
9,708
13,822
423,712
346,216
77,496
171,797
28,822
54,369
71,971

81,636
56,698
10,606
14,332
462,540
378,267
84,273
185,268
31,725
54,273
76,862

82,047
57,511
10,212
14,324
467,433
381,381
86,052
186,976
31,918
54,199
77,798

84,858
59,802
10,712
14,344
473,860
386,293
87,567
189,460
32,184
54,152
76,177

84,64c 84,923' 88,003' 90,337'
59,033' 59,596' 62,724' 65,661'
11,659'' 11,245' 11,315' 10,86c
13,964' 13,816'
13,948' 14,082'
492,807' 504,582' 514,328' 519,766'
401,943' 408,788' 415,004' 417,933'
90,864' 95,794' 99,324' 101,833'
193,842' 194,213' 194,935' 195,743'
31,615' 31,718' 32,003' 31,834'
54,055' 53,832' 53,806' 53,652'
80,592' 79,397' 78,842' 82,105'

89,711
64,621
11,068
14,022
522,097
420,474
101,623
197,315
32,011
53,572
83,749

89,554
64,201
11,208
14,145
528,789
425,788
103,001
198,760
32,149
53,468
83,222

87,279
61,405
11,485
14,389
537,507
432,095
105,412
200,382
32,357
53,378
84,390

1. Holdings of stock of the Federal Home Loan Banks are in "other assets."
2. Includes net undistributed income accrued by most associations.
3. Excludes checking, club, and school accounts.
4. Data include all federally insured credit unions, both federal and state
chartered, serving natural persons.
5. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
6. 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 FHLBB for all
associations in the United States based on annual benchmarks for non-FSLICinsured associations and the experience of FSLIC-insured associations.
FSLIC-insured federal savings banks: Estimates by the FHLBB for federal
savings banks insured by the FSLIC and based on monthly reports of federally
insured institutions.




n.a.

Savings banks: Estimates by the National Council of Savings Institutions for all
savings banks in the United States and for FDIC-insured savings banks that have
converted to federal savings banks.
Credit unions: Estimates by the National Credit Union Administration for
federally chartered and federally insured state-chartered credit unions serving
natural persons.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for
differences between market and book values are not made on each item separately
but are included, in total, in "other assets."

A28
1.38

DomesticNonfinancialStatistics • December 1987
FEDERAL FISCAL A N D FINANCING

OPERATIONS

Millions of dollars
Calendar year
Type of account or operation

Fiscal
year
1984

Fiscal
year
1985

Fiscal
year
1986

1987
Apr.

U.S. budget1
1 Receipts, total
2 On-budget
Off-budget
4 Outlays, total
5 On-budget
6 Off-budget
7 Surplus, or deficit ( - ) , total
8 On-budget
9 Off-budget
Source of financing (total)
Borrowing from the public
Operating cash (decrease, or increase
(-),
12 Other 2

10
11

769,091
568,862
200,228
989,815
806,318
183,498
-220,725
-237,455
16,371

May

June

July

Aug.

122,897
99,083
23,814
84,240
69,215
15,025
38,657
29,867
8,790

47,691
30,205
17,486
83,435
66,389
17,046
-35,744
-36,184
440

82,945
64,222
18,723
83,366
66,221
17,145
-420
-1,998
1,578

64,223
47,880
16,343
86,491
70,806
15,685
-22,268
-22,926
658

60,213
43,511
16,703
81,940
65,071
16,869
-21,727
-21,561
-166

Sept.

666,457
500,382
166,075
851,781
685,968
165,813
-185,324
-185,586
262

734,057
547,886
186,171
946,316
769,509
176,807
-212,260
-221,623
9,363

170,817

197,269

236,187''

9,075

13,005

9,655

-3,103

33,060

-8,060

6,631
7,875

13,367
1,630

-14,324
-11V

-46,775
-543

22,638
-1,478

-6,966
-2,801

20,655
4,716

-3,219
-8,115

-13,800
6,590

30,426
8,514
21,913

17,060
4,174
12,886

31,384
7,514
23,870

55,744
29,688
26,056

33,106
6,383
26,723

40,072
13,774
26,298

19,417
5,365
14,052

22,635
3,764
18,872

36,436
9,120
27,316

92,410
73,755
18,656
77,140
60,497
16,643
15,270
13,257
2,013

MEMO

13 Treasury operating balance (level, end of
period)
14 Federal Reserve Banks
15 Tax and loan accounts

1. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985, all former off-budget entries are now presented on-budget. The Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the FFB to finance their programs. The act has also moved two
social security trust funds (Federal old-age survivors insurance and Federal
disability insurance trust funds) off-budget.
2. Includes SDRs; reserve position on the U.S. quota in the IMF; loans to
international monetary fund; other cash and monetary assets; accrued interest
payable to the public; allocations of special drawing rights; deposit funds;




miscellaneous liability (including checks outstanding) and asset accounts;
seigniorage; increment on gold; net gain/loss for U.S. currency valuation adjustment; net gain/loss for IMF valuation adjustment; and profit on the sale of gold.
Reflecting the change in Monthly Treasury Statement classification, Table 2,
monthly data as well as fiscal year data now include monetary assets other than
operating cash with "other", sources of financing, (line 12).
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government" and the Budget of the U.S. Government.

Federal Finance
1.39

U.S. B U D G E T RECEIPTS A N D

A29

OUTLAYS

Millions of dollars
Calendar year
Source or type

Fiscal
year
1985

Fiscal
year
1986

1985

1986

1987

1987

H2

HI

H2

HI

July

Aug.

Sept.

RECEIPTS

734,057

1 A11 sources
2 Individual income taxes, net
3 Withheld
4 Presidential Election Campaign Fund
Nonwithheld
6 Refunds
Corporation income taxes
7 Gross receipts
8 Refunds
9 Social insurance taxes and contributions,
net
10 Employment taxes and
contributions
11 Self-employment taxes and
contributions
12 Unemployment insurance
13 Other net receipts
14
15
16
17

Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 4

769,091

364,790

394,345

387,524

447,282

64,223

60,213

92,410

334,560'
298,941
35
101,328
65,743

348,959
314,803'
36
105,994
71,873

169,987
155,725
6
22,295
8,038

169,444
153,919
31
78,981
63,488

183,156
164,071
4
27,733
8,652

205,157
156,760
30
112,421
64,052

31,889
31,596
2
2,452
2,160

26,884
25,008
1
3,108
1,233

39,797
24,569
0
17,127
1,899

77,413
16,082

80,442
17,298

36,528
7,751

41,946
9,557

42,108
8,230

52,396
10,881

3,812
1,454

2,549
983

21,636
1,129

265,163

283,901

128,017

156,714

134,006

163,519

23,346

25,712

25,403

234,646

255,062

116,276

139,706

122,246

146,696

20,890

21,447

23,788

10,468
25,758
4,759

11,840
24,098
4,742

985
9,281
2,458

10,581
14,674
2,333

1,338
9,328
2,429

12,020
14,514
2,310

155
2,038
417

0
3,912
354

1,590
1,246
368

35,992
12,079
6,422
18,5^

32,919
13,327'
6,958
19,884'

18,470
6,354
3,323
9,861

15,944
6,369
3,487
10,002

15,947
7,282
3,649
9,605

15,845
7,129
3,818
10,299

2,908
1,420
671
1,631

2,698
1,370
587
1,396

2,808
1,278
587
2,032

OUTLAYS

18 All types

946,316

989,815

487,188

486,037

506,739

503,338

86,491

81,940

77,140

19
20
21
22
23
24

National defense
International affairs
General science, space, and technology . . . .
Energy
Natural resources and environment
Agriculture

252,748
16,176
8,627
5,685
13,357
25,565

273,369
14,471
9,017
4,792
13,508
31,169

134,675
8,367
4,727
3,305
7,553
15,412

135,367
5,384
12,519
2,484
6,245
14,482

138,544
8,876
4,594
2,735
7,141
16,160

142,846
4,420
4,324
2,335
6,179
11,824

24,126
1,145
836
256
1,392
1,462

24,387
146
823
341
1,075
1,336

22,132
1,712
860
-197
1,157
1,383

25
26
27
28

Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, social
services

4,229
25,838
7,680

4,258
28,058
7,510

644
15,360
3,901

860
12,658
3,169

3,647
14,745
3,494

4,889
12,113
3,108

232
2,289
603

355
2,405
464

-547
2,505
-602

29,342

29,662

14,481

14,712

15,268

14,182

1,854

2,757

2,178

33,542
254,446
128,200

35,936
268,921
120,686

17,237
129,037
59,457

17,872
135,214
60,786

19,814
138,296
59,628

20,318
142,864
62,248

3,466
26,431'
11,460

3,419
25,261'
8,788

3,332
25,671
9,880

26,352
6,277
5,228
6,353
129,436
-32,759

26,614
6,555
6,796
6,430
135,284
-33,244

14,527
3,212
3,634
3,391
67,448
-17,953

12,193
3,352
3,566
2,179
68,054
-17,193

14,497
3,360
2,786
2,767
66,770
-17,426

12,264
3,626
3,238
455
70,110
-18,005

3,368
754
209
167
11,711
-2,831

1,121
634
598
62
13,064
-2,764

2,168
766
379
428
10,284
-4,106

Health
30 Social security and medicare
31 Income security

29

32
33
34
35
36
37

Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Net interest
Undistributed offsetting receipts 6

1. Old-age, disability, and hospital insurance, and railroad retirement accounts.
2. Old-age, disability, and hospital insurance.
3. Federal employee retirement contributions and civil service retirement and
disability fund.
4. Deposits of earnings by Federal Reserve Banks and other miscellaneous
receipts.




5. Net interest function includes interest received by trust funds.
6. Consists of rents and royalties on the outer continental shelf and U.S.
government contributions for employee retirement.
SOURCES. U.S. Department of the Treasury, "Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government," and the U.S. Office of Management and Budget, Budget of the U.S. Government, Fiscal Year 1988.

A30

D o m e s t i c Financial Statistics •

D e c e m b e r 1987

1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
B i l l i o n s o f dollars
1985

1986

1987

Item
June 30

Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

Dec. 31

Mar. 31

June 30

1 Federal debt outstanding

1,779.0

1,827.5

1,950.3

1,991.1

2,063.6

2,129.5

2,218.9

2,250.7

2,313.1

2 Public debt securities
3
Held by public
Held by agencies
4

1,774.6
1,460.5
314.2

1,823.1
1,506.6
316.5

1,945.9
1,597.1
348.9

1,986.8
1,634.3
352.6

2,059.3
1,684.9
374.4

2,125.3
1,742.4
382.9

2,214.8
1,811.7
403.1

2,246.7
1,839.3
407.5

2,309.3
1,871.1
438.1

4.4
3.3
1.1

4.4
3.3
1.1

4.4
3.3
1.1

4.3
3.2
1.1

4.3
3.2
1.1

4.2
3.2
1.1

4.0
3.0
1.1

4.0
2.9
1.1

3.8
2.7
1.1

5 Agency securities
Held by public
6
Held by agencies
7

1,775.3

1,823.8

1,932.4

1,973.3

2,060.0

2,111.0

2,200.5

2,232.4

2,295.0

9 Public debt securities
1
10 Other debt

1,774.0
1.3

1,822.5
1.3

1,931.1
1.3

1,972.0
1.3

2,058.7
1.3

2,109.7
1.3

2,199.3
1.3

2,231.1
1.3

2,293.7
1.3

11 MEMO: Statutory debt limit

1,823.8

1,823.8

2,078.7

2,078.7

2,078.7

2,111.0

2,300.0

2,300.0

2,320.0

8 Debt subject to statutory limit

1. Includes guaranteed debt of Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District
of Columbia stadium bonds.

1.41 GROSS PUBLIC DEBT OF U.S. TREASURY

SOURCES. Treasury Bulletin and Monthly
United States.

Statement

of the Public Debt of the

Types and Ownership

B i l l i o n s of dollars, e n d o f p e r i o d
1987
Type and holder

1983

1984

1985

1986
Q3

1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13

By type
Interest-bearing debt
Marketable
Bills
Notes
Bonds
Nonmarketable
State and local government series
Foreign issues 2
Government
Public
Savings bonds and notes.
Government account series

14 Non-interest-bearing debt
15
16
17
18
19
20
21
22
23
24
25
26

By holder4
U.S. government agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
Money market funds
Insurance companies
Other companies
State and local Treasurys
Individuals
Savings bonds
Other securities
Foreign and international
Other miscellaneous investors

Ql

Q2

1,410.7

1,663.0

1,945.9

2,214.8

2,125.3

2,214.8

2,246.7

2,309.3

1,400.9
1,050.9
343.8
573.4
133.7
350.0
36.7
10.4
10.4
.0
70.7
231.9

1,660.6
1,247.4
374.4
705.1
167.9
413.2
44.4
9.1
9.1

1,943.4
1,437.7
399.9
812.5

2,212.0
1,619.0
426.7
927.5
249.8
593.1
110.5
4.7
4.7

2,122.7
1,564.3
410.7
896.9
241.7
558.4
102.4
4.1
4.1

2,212.0
1,619.0
426.7
927.5
249.8
593.1
110.5
4.7
4.7

2,244.0
1,635.7
406.2
955.3
259.3
608.3
118.5
4.9
4.9

2,306.7
1,659.0
391.0
984.4
268.6
647.7
125.4
5.1
5.1

78.1
332.2

.0

90.6
386.9

85.6
365.9

.0

286.2

90.6
386.9

93.0
391.4

95.2
421.6

9.8

2.3

2.5

2.8

2.6

2.8

2.7

2.6

236.3
151.9

348.9
181.3
1,417.2
192.2
25.1
95.8
59.0
n.a.

403.1
211.3
1,602.0
232.1
28.6
106.9
68.8
n.a.

382.9
190.8
1,553.3
212.5
24.9
100.9
65.7
n.a.

403.1
211.3
1,602.0
232.1
28.6
106.9
68.8
n.a.

407.5
n.a.
1,641.4
232.0

56.7
39.7
155.1

289.6
160.9
1,212.5
183.4
25.9
76.4
50.1
179.4

n.a.
72.1
n.a.

438.1
212.3
1,657.7
237.1
20.6
n.a.
n.a.
n.a.

71.5
61.9
166.3
259.8

74.5
69.3
192.9
360.6

79.8
75.0
212.5
n.a.

92.3
65.6
251.5
n.a.

87.1
68.7
253.2
n.a.

92.3
65.6
251.5
n.a.

94.7
63.3
260.4
n.a.

96.8
63.4
269.9
n.a.

1,022.6

188.8
22.8

1. Includes (not shown separately): Securities issued to the Rural Electrification Administration; depository bonds, retirement plan bonds, and individual
retirement bonds.
2. Nonmarketable dollar-denominated and foreign currency-denominated series held by foreigners.
3. Held almost entirely by U.S. Treasury agencies and trust funds.
4. Data for Federal Reserve Banks and U.S. Treasury agencies and trust funds
are actual holdings; data for other groups are Treasury estimates.




Q4

.0

73.1

211.1

505.7
87.5
7.5
7.5
.0

.0

.0

18.8

.0

5. Consists of investments of foreign and international accounts. Excludes
non-interest-bearing notes issued to the International Monetary Fund.
6. Includes savings and loan associations, nonprofit institutions, credit unions,
mutual savings banks, corporate pension trust funds, dealers and brokers, certain
U.S. Treasury deposit accounts, and federally-sponsored agencies.
SOURCES. Data by type of security, U.S. Treasury Department, Monthly
Statement of the Public Debt of the United States; data by holder. Treasury
Bulletin.

Federal Finance
1.42

U.S. G O V E R N M E N T SECURITIES DEALERS

A31

Transaction1

Par value; averages of daily figures, in millions of dollars
1987
Item

1984

1985

1987

1986
July

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

Immediate delivery2
U.S. Treasury securities
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
By type of customer
U.S. government securities
dealers
U.S. government securities
brokers
All others 3
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures contracts
Treasury bills
Treasury coupons
Federal agency securities
Forward transactions
U.S. Treasury securities
Federal agency securities

Sept.

Aug. 26

Sept. 2

Sept. 9

Sept. 16

Sept. 23 Sept. 30

52,778

75,331

95,447

91,110

104,957

108,241

92,329

120,550

118,098

108,781

88,193

109,476

26,035
1,305
11,733
7,606
6,099

32,900
1,811
18,361
12,703
9,556

34,249
2,115
24,667
20,455
13,961

32,548
3,575
22,149
19,422
13,415

35,761
2,937
28,363
20,398
17,497

35,704
2,993
27,401
25,980
16,163

31,229
2,552
29,010
15,845
13,693

40,056
2,895
33,812
27,751
16,036

41,122
2,421
29,528
27,818
17,209

34,052
3,032
25,995
28,286
17,415

25,521
2,809
20,643
23,663
15,559

38,150
3,660
31,037
22,717
13,912

2,919

3,336

3,646

2,406

3,074

2,478

2,952

3,114

2,182

2,810

1,905

3,233

25,580
24,278
7,846
4,947
3,243
10,018

36,222
35,773
11,640
4,016
3,242
12,717

49,368
42,218
16,746
4,355
3,272
16,660

48,825
39,070
17,938
3,938
3,143
17,882

57,428
43,778
16,079
3,475
2,765
15,606

63,834
41,276
15,802
3,233
2,812
16,143

51,097
38,280
16,863
3,357
2,328
14,313

70,452
46,983
15,773
3,549
3,067
16,698

71,083
44,831
13,713
3,710
2,918
15,042

65,496
40,474
20,428
3,048
2,939
16,598

53,427
32,861
15,466
2,833
2,426
15,711

62,911
43,332
13,091
3,163
2,773
16,725

6,947
4,533
264

5,561
6,085
252

3,311
7,175
16

2,091
6,821
6

2,786
8,967
10

2,738
12,158
1

2,868
8,389
0

3,930
12,701
36

3,626
13,472

2,458
13,054
2

1,889
11,680
0

2,926
9,838

*

1,364
2,843

1,283
3,857

1,876
7,830

819
9,854

1,697
8,447

814
8,281

2,422
8,614

1,046
6,157

925
8,358

388
10,868

641
8,437

1,337
6,123

1. Transactions are market purchases and sales of securities as reported to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers.
Averages for transactions are based on the number of trading days in the period.
The figures exclude allotments of, and exchanges for, new U.S. Treasury
securities, redemptions of called or matured securities, purchases or sales of
securities under repurchase agreement, reverse repurchase (resale), or similar
contracts.
2. Data for immediate transactions do not include forward transactions.
3. Includes, among others, all other dealers and brokers in commodities and




Aug/

*

securities, nondealer departments of commercial banks, foreign banking agencies,
and the Federal Reserve System.
4. Futures contracts are standardized agreements arranged on an organized
exchange in which parties commit to purchase or sell securities for delivery at a
future date.
5. Forward transactions are agreements arranged in the over-the-counter
market in which securities are purchased (sold) for delivery after 5 business days
from the date of the transaction for Treasury securities (Treasury bills, notes, and
bonds) or after 30 days for mortgage-backed agency issues.

A32
1.43

DomesticNonfinancialStatistics • December 1987
U.S. G O V E R N M E N T SECURITIES DEALERS

Positions and Financing1

Averages of daily figures, in millions of dollars
1987
Item

1984

1985

1987

1986
July

Aug/

Sept.

Sept. 2

Sept. 9

Sept. 16

Sept. 23

Sept. 30

Positions
Net immediate2
U.S. Treasury securities

5,429

7,391

13,055

-8,871

-10,685

-23,315

-16,142

-22,340

-21,888

-23,516

-28,413

2
3
4
5
6

Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years

5,500
63
2,159
-1,119
-1,174

10,075
1,050
5,154
-6,202
-2,686

12,723
3,699
9,297
-9,504
-3,161

5,041
1,259
-2,328
-7,000
-5,843

5,586
461
-6,009
-5,719
-5,004

2,407
-760
-10,128
-8,088
-6,745

1,311
-565
-8,577
-4,339
-3,972

1,066
-702
-9,211
-7,577
-5,918

4,223
-504
-10,446
-8,248
-6,912

4,318
-979
-10,413
-8,818
-7,624

-423
-825
-10,825
-9,040
-7,300

7
8
9
10

Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures positions
Treasury bills
Treasury coupons
Federal agency securities
Forward positions
U.S. Treasury securities
Federal agency securities

15,294
7,369
3,874
3,788

22,860
9,192
4,586
5,570

33,066
10,533
5,535
8,087

33,180
7,414
3,151
6,462

33,311
7,862
3,444
5,800

33,682
7,968
3,016
6,389

30,877
7,831
3,097
6,673

32,594
8,072
3,170
6,854

35,084
7,986
3,115
7,031

34,668
7,986
2,727
5,779

33,326
7,859
2,799
5,821

-4,525
1,794
233

-7,322
4,465
-722

-18,062
3,489
-153

916
6,194
-96

-2,013
6,286
-95

-203
8,525
-96

756
8,186
-96

-363
9,910
-96

54
8,969
-96

-1,147
8,287
-96

222
7,091
-96

-1,643
-9,205

-911
-9,420

-2,304
-11,909

-1,759
-20,187

-1,873
-22,436

-173
-21,778

-2,007
-20,585

-628
-21,501

181
-22,635

41
-22,271

304
-21,092

1

11
12
13
14
15

Financing3
Reverse repurchase agreements 4
Overnight and continuing
Term
Repurchase agreements
18 Overnight and continuing
19 Term
16
17

44,078
68,357

68,035
80,509

98,954
108,693

124,938
150,323

128,059
160,684

n.a.
n.a.

132,940
165,511

136,435
157,466

138,427
171,083

142,866
175,666

n.a.
n.a.

75,717
57,047

101,410
70,076

141,735
102,640

168,870
120,198

174,219
127,429

n.a.
n.a.

181,265
124,585

182,178
118,147

185,369
127,491

183,644
137,504

n.a.
n.a.

1. Data for dealer positions and sources of financing are obtained from reports
submitted to the Federal Reserve Bank of New York by the U.S. Treasury
securities dealers on its published list of primary dealers.
Data for positions are averages of daily figures, in terms of par value, based on
the number of trading days in the period. Positions are net amounts and are shown
on a commitment basis. Data for financing are in terms of actual amounts
borrowed or lent and are based on Wednesday figures.
2. Immediate positions are net amounts (in terms of par values) of securities
owned by nonbank dealer firms and dealer departments of commercial banks on
a commitment, that is, trade-date basis, including any such securities that have
been sold under agreements to repurchase (RPs). The maturities of some
repurchase agreements are sufficiently long, however, to suggest that the securities involved are not available for trading purposes. Immediate positions include




reverses to maturity, which are securities that were sold after having been
obtained under reverse repurchase agreements that mature on the same day as the
securities. Data for immediate positions do not include forward positions.
3. Figures cover financing involving U.S. Treasury and federal agency securities, negotiable CDs, bankers acceptances, and commercial paper.
4. Includes all reverse repurchase agreements, including those that have been
arranged to make delivery on short sales and those for which the securities
obtained have been used as collateral on borrowings, that is, matched agreements.
5. Includes both repurchase agreements undertaken to finance positions and
"matched book" repurchase agreements.
NOTE. Data on positions for the period May 1 to Sept. 30, 1986, are partially
estimated.

Federal Finance
1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES

A33

Debt Outstanding

Millions of dollars, end of period
1987
Agency

1984

1986

1985

Mar.
1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department
4 Export-Import Bank 2 '
5 Federal Housing Administration
6 Government National Mortgage Association participation
certificates
7 Postal Service 6
8 Tennessee Valley Authority
United States Railway Association6
9
10 Federally sponsored agencies7
11 Federal Home Loan Banks
12 Federal Home Loan Mortgage Corporation
13 Federal National Mortgage Association
14 Farm Credit Banks
15 Student Loan Marketing Association8
MEMO

16 Federal Financing Bank debt'

Apr.

May

June

July

Aug.

271,220

293,905

307,361

305,033r

306,909

308,547

310,854'

313,859

35,145
142
15,882
133

36,390
71
15,678
115

36,958
33
14,211
138

36,660
24
13,813
158

36,531
23
13,813
165

36,587
21
13,813
168

36,968
20
13,416
169

36,963
18
13,416
175

2,165
1,337
15,435
51

2,165
1,940
16,347
74

2,165
3,104
17,222
85

2,165
3,104
17,311
85

1,965
3,104
17,376
85

1,965
3,104
17,431
85

1,965
3,718
17,595
85

1,965
3,718
17,586
85

237,012
65,085
10,270
83,720
72,192
5,745

257,515
74,447
11,926
93,896
68,851
8,395

270,553
88,752
13,589
93,563
62,478
12,171

266,948
92,087
13,074
91,618
57,613
12,556

270,378
94,606
14,850
89,741
57,251
13,930

271,960
95,931
14,637
90,514
56,648
14,230

273,886r
99,680
12,097'
91,039
56,648
14,422'

276,896
100,976
12,309
91,637
55,715
16,259

102,422
14,150
91,568
55,408
15,547

145,217

153,373

157,510

157,012

157,177

157,331

157,506

157,302

n.a.

15,852
1,087
5,000
13,710
51

15,670
1,690
5,000
14,622
74

14,205
2,854
4,970
15,797
85

13,807
2,854
4,970
15,931
85

13,807
2,854
4,970
15,996
85

13,807
2,854
4,970
16,051
85

13,410
3,468
4,970
16,215
85

13,410
3,468
4,970
16,206
85

58,971
20,693
29,853

64,234
20,654
31,429

65,374
21,680
32,545

65,224
21,473
32,668

65,254
21,487
32,724

65,304
21,525
32,735

65,199
21,539
32,620

65,049
21,529
32,585

n.a.

Lending to federal and federally sponsored
17
18
19
20
21

Export-Import Bank3
Postal Service 6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association6

Other Lending10
22 Farmers Home Administration
23 Rural Electrification Administration
24 Other

1. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1,1976.
3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
5. Certificates of participation issued before fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing
and Urban Development; Small Business Administration; and the Veterans
Administration.
6. Off-budget.




n.a.

7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Some data are estimated.
8. Before late 1981, the Association obtained financing through the Federal
Financing Bank (FFB).
9. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since FFB
incurs debt solely for the purpose of lending to other agencies, its debt is not
included in the main portion of the table in order to avoid double counting.
10. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any
particular agency being generally small. The Farmers Home Administration item
consists exclusively of agency assets, while the Rural Electrification Administration entry contains both agency assets and guaranteed loans.

A34

DomesticNonfinancialStatistics • December 1987

1.45 NEW SECURITY ISSUES

Tax-Exempt State and Local Governments

Millions of dollars
1987

Type of issue or issuer,
or use

1984

1985

1986
Feb.

1

Mar.

Apr.

May

June

July

Aug/

Sept.

106,641

214,189

147,011

8,969

14,591

6,708

6,037

10,718

6,967

6,500

5,122

Type of issue
2 General obligation
3 Revenue

26,485
80,156

52,622
161,567

46,346
100,664

3,643
5,325

3,853
10,738

3,363
3,345

2,872
3,165

3,329
7,389

2,238
4,729

1,975
4,525

1,614
3,509

Type of issuer
4 State
5 Special district and statutory authority
6 Municipalities, counties, townships

9,129
63,550
33,962

13,004
134,363
78,754

14,474
89,997
42,541

1,364
5,825
1,781

1,217
10,004
3,370

419
4,665
1,624

1,002'
3,019
2,017

1,138
6,453
3,127

834
3,951
2,182

398
4,508
1,594

530
3,450
1,142

7 Issues for new capital, total

94,050

156,050

83,490

2,774

4,480

3,117'

3,848

7,552

4,478

5,084

4,138

Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes

7,553
7,552
17,844
29,928
15,415
15,758

16,658
12,070
26,852
63,181
12,892
24,398

16,948
11,666
35,383
17,332
5,594
47,433

448
145
482
527
89
1,084

659
111
444
991
368
1,907

774
98
571
468
33
1,295

789
194
561
454
161
1,689

1,554
705
1,410
1,082
401
2,399

773
647
835
465
457
1,301

869
226
462
903
1,591
1,033

646
310
581
590
216
1,795

1 All issues, new and refunding

8
9
10
11
12
13

1. Par amounts of long-term issues based on date of sale.
2. Includes school districts beginning April 1986.

1.46 NEW SECURITY ISSUES

SOURCES. Securities Data Company beginning 1986. Public Securities Association for earlier data. This new data source began with the November BULLETIN.

U.S. Corporations

Millions of dollars
1987
Type of issue or issuer,
or use

1984

1985

1986
Jan.

Feb.

Mar.

Apr.

May

June

July'

Aug.

1 All issues1

155,145'

239,015'

423,726

24,168

27,048

37,953

23,735

19,969

28,445

27,417

21,350

2 Bonds2

132,517'

203,500'

355,293

21,253

23,281

28,143

19,518

13,431

22,093

22,077

17,350

73,579
36,324
22,613

119,559
46,195
37,781

231,936
80,761
42,596

20,250
n.a.
1,003

20,274
n.a.
3,007

23,388
n.a.
4,755

17,634
n.a.
1,884

11,394
n.a.
2,037

20,564

19,051

14,625

1,530

3,026

2,725

32,804'
14,792'
4,784'
10,996'
3,400'
65,740'

63,973'
17,066'
6,020'
13,649'
10,832'
91,958'

91,548
40,124
9,971
31,426
16,659
165,564

4,638
1,253
0
1,491
65
13,806

4,253
1,884
176
2,715
410
13,844

7,180
4,261
521
794
710
14,678

2,734
1,683
168
1,370
175
13,389

5,035
754
21
572
138
6,912

4,104
2,061
0
2,091
205
13,632

5,532
1,005
343
1,644
119
13,217

3,337
1,281
296
1,533
856
10,049

12 Stocks3

22,628

35,515

68,433

2,915

3,767

9,810

4,217

6,538

6,352

5,340

4,000

Type
13 Preferred
14 Common

4,118
18,510

6,505
29,010

11,514
50,316
6,603

429
2,486
n.a.

905
2,862
n.a.

2,257
7,553
n.a.

526
3,691
n.a.

1,170
5,368
n.a.

1,202
5,150
n.a.

1,157
4,183
n.a.

911
3,089

4,054
6,277
589
1,624
419
9,665

5,700
9,149
1,544
1,966
978
16,178

15,027
10,617
2,427
4,020
1,825
34,517

365
148
0
237
16
2,149

814
437
191
509
9
1,807

2,016
2,366
299
907
57
4,165

653
2,203
230
297
18
816

1,066
1,516
3
374
200
3,379

1,438
1,353
492
329
199
2,541

1,046
879
379
472
294
2,270

443
844
0
85
302
2,326

Type of offering
3 Public, domestic
4 Private placement, domestic
5. Sold abroad
6
7
8
9
10
11

16
17
18
19
20
21

Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial

Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial

1. Figures which represent gross proceeds of issues maturing in more than one
year, are principal amount or number of units multiplied by offering price.
Excludes secondary offerings, employee stock plans, investment companies other
than closed-end, intracorporate transactions, equities sold abroad, and Yankee
bonds. Stock data include ownership securities issued by limited partnerships.




2. Monthly data include only public offerings.
3. Data are not available on a monthly basis.
SOURCES. IDD Information Services, line., U.S. Securities and Exchange
Commission and the Board of Governors of the Federal Reserve System.

Securities
1.47 OPEN-END INVESTMENT COMPANIES

Market

and

Corporate

Finance

A35

Net Sales and Asset Position

Millions of dollars
1987
Item

1985

1986
Jan.

Feb.

Mar.

Apr.

May

June

July'

Aug.

INVESTMENT COMPANIES 1

1 Sales of own shares2

222,670

411,483

50,116

36,307

40,378

42,857

28,295

28,637

27,970

26,455

3 Net sales

132,440
90,230

239,394
172,089

26,565
23,551

21,576
14,731

24,730
15,648

37,448
5,409

23,453
4,842

23,693
4,944

22,807
5,763

22,562
3,893

4 Assets4

251,695

424,156

464,415

490,643

506,752

502,487

500,634

516,866

531,022

529,166

5 Cash position5
6 Other

20,607
231,088

30,716
393,440

34,098
430,317

35,279
455,364

37,090
469,662

43,009
459,478

39,158
461,476

41,467
475,099

41,587
489,435

40,731
498,435

5. Also includes all U.S. government securities and other short-term debt
securities.

1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment of capital gains distributions and share issue of conversions from one fund
to another in the same group.
3. Excludes share redemption resulting from conversions from one fund to
another in the same group.
4. Market value at end of period, less current liabilities.

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.

1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1985
Account

1984

1985

1986

1987

1986
Q3

Q4

Q1

Q2

Q3

Q4

Ql

Q2

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

266.9
239.9
93.9
146.1
79.0
67.0

277.6
224.8
96.7
128.1
81.3
46.8

284.4
231.9
105.0
126.8
86.8
40.0

292.8
230.2
100.5
129.7
81.2
48.5

277.8
233.5
99.1
134.4
81.7
52.7

288.0
218.9
98.1
120.9
84.3
36.6

282.3
224.4
102.1
122.3
86.6
35.7

286.4
236.3
106.1
130.2
87.7
42.5

281.1
247.9
113.9
134.0
88.6
45.4

294.0
257.0
128.0
129.0
90.3
38.7

296.8
268.7
134.2
134.5
92.4
42.1

7 Inventory valuation
8 Capital consumption adjustment

-5.8
32.8

-.8
53.5

6.5
46.0

6.5
56.0

-9.8
54.2

17.8
51.3

11.3
46.7

6.0
44.0

-8.9
42.1

-11.3
48.2

-20.0
48.0

SOURCE. Survey of Current Business (Department of Commerce).




A36

DomesticNonfinancialStatistics • December 1987
Assets and Liabilities1

1.49 NONFINANCIAL CORPORATIONS
Billions of dollars, except for ratio

1985
Account

1980

1981

1982

1983

1986

1984
Q1

1 Current assets

Q2

Q3

Q4

Q1

1,328.3

1,419.6

1,437.1

1,565.9

1,703.0

1,722.7

1,734.6

1,763.0

1,784.6

1,795.7

127.0
18.7
507.5
543.0
132.1

135.6
17.7
532.5
584.0
149.7

147.8
23.0
517.4
579.0
169.8

171.8
31.0
583.0
603.4
186.7

173.6
36.2
633.1
656.9
203.2

167.5
35.7
650.3
665.7
203.5

167.1
35.4
654.1
666.7
211.2

176.3
32.6
661.0
675.0
218.0

189.2
33.0
671.5
666.0
224.9

195.3
31.0
663.4
679.6
226.3

7 Current liabilities

890.6

971.3

986.0

1,059.6

1,163.6

1,174.1

1,182.9

1,211.9

1,233.6

1,222.3

8 Notes and accounts payable
9 Other

514.4
376.2

547.1
424.1

550.7
435.3

595.7
463.9

647.8
515.8

636.9
537.1

651.7
531.2

670.4
541.5

682.7
550.9

668.4
553.9

10 Net working capital

437.8

448.3

451.1

516.3

539.5

548.6

551.7

551.1

551.0

573.4

11 MEMO: Current ratio2

1.492

1.462

1.459

1.487

1.464

1.467

1.466

1.455

1.447

1.469

2
3
4
5
6

Cash
U.S. government securities
Notes and accounts receivable
Inventories
Other

1. For a description of this series, see "Working Capital of Nonfinancial
Corporations" in the July 1978 BULLETIN, pp. 533-37. Data are not currently
available after 1986:1.

2. Ratio of total current assets to total current liabilities.
SOURCE. Federal Trade Commission and Bureau of the Census,

1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment •
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1986
Industry

1985

1986

1987

19871
Q1

1 Total nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5 Railroad
6 Air
7 Other
Public utilities
8 Electric
9 Gas and other
10 Commercial and other 2

Q3

Q4

Q1

Q2

Q31

Q41

387.13

379.47

389.07

380.04

376.21

375.50

386.09

374.23

377.65

398.04

406.37

73.27
80.21

69.14
73.56

71.23
75.17

68.71
76.39

68.56
73.62

69.42
70.01

69.87
74.20

70.47
70.18

68.76
72.03

73.24
77.23

72.44
81.22

15.88

11.22

10.75

13.13

11.29

10.14

10.31

10.31

11.02

11.06

10.60

7.08
4.79
6.15

6.66
6.26
5.89

6.29
6.70
6.52

6.50
6.53
5.47

6.70
5.87
5.83

7.02
5.78
6.01

6.41
6.84
6.25

5.55
7.46
5.97

5.77
5.72
6.19

6.79
6.62
7.05

7.05
7.02
6.88

36.11
12.71
150.93

33.91
12.47
160.38

31.96
12.56
167.89

34.25
12.92
156.14

33.77
12.66
157.91

33.81
12.00
161.31

33.78
12.34
166.08

30.85
12.75
160.70

31.13
12.35
164.69

32.93
12.66
170.46

32.95
12.49
175.70

ATrade and services are no longer being reported separately. They are included
in Commercial and other, line 10.
1. Anticipated by business.




Q2

2. "Other" consists of construction; wholesale and retail trade: finance and
insurance; personal and business services; and communication.
SOURCE. Survey of Current Business (Department of Commerce).

Securities Markets and Corporate Finance
1.51 DOMESTIC FINANCE COMPANIES

A37

Assets and Liabilities

Billions of dollars, end of period
1986
Account

1982

1983

1984

1987

1985

Qi

Q2

Q3

Q4

Ql

Q2

ASSETS

Accounts receivable, gross
1 Consumer
2 Business
Real estate
4 Total

75.3
100.4
18.7
194.3

83.3
113.4
20.5
217.3

89.9
137.8
23.8
251.5

113.4
158.3
28.9
300.6

117.2
165.9
29.9
312.9

125.1
167.7
30.8
323.6

137.1
161.0
32.1
330.2

136.5
174.8
33.7
345.0

133.9
182.8
35.1
351.8

136.9
189.0
36.3
362.1

29.9
3.3

30.3
3.7

33.8
4.2

39.2
4.9

40.0
5.0

40.7
5.1

42.4
5.4

41.4
5.8

40.4
5.9

41.2
6.2

7 Accounts receivable, net
8 All other

161.1
30.4

183.2
34.4

213.5
35.7

256.5
45.3

268.0
48.8

277.8
48.8

282.4
59.9

297.8
57.9

305.5
59.0

314.8
57.0

9 Total assets

191.5

217.6

249.2

301.9

316.8

326.6

342.3

355.6

364.5

371.8

16.5
51.4

18.3
60.5

20.0
73.1

20.6
99.2

19.0
104.3

19.2
108.4

20.2
112.8

22.2
117.8

17.3
119.1

17.2
118.7

11.9
63.7
21.6
26.4

11.1
67.7
31.2
28.9

12.9
77.2
34.5
31.5

12.5
93.1
40.9
35.7

13.4
101.0
42.3
36.7

15.4
105.2
40.1
38.4

16.0
109.8
44.1
39.4

17.2
115.6
43.4
39.4

21.6
118.4
46.3
41.8

24.2
120.4
48.1
43.1

191.5

217.6

249.2

301.9

316.8

326.6

342.3

355.6

364.5

371.8

Less:
5 Reserves for unearned income
6 Reserves for losses

LIABILITIES

10 Bank loans
11 Commercial paper
Debt
12 Other short-term
13 Long-term
14 All other liabilities
15 Capital, surplus, and undivided profits
16 Total liabilities and capital

NOTE. Components may not add to totals because of rounding.

1.52 DOMESTIC FINANCE COMPANIES

Business Credit

Millions of dollars, seasonally adjusted except as noted

Type

Accounts
receivable
outstanding
Aug. 31,
19871

Changes in accounts receivable

Extensions

Repayments

1987

1987

1987

June
1 Total
2
3
4
5
6
7
8
9
10

Retail financing of installment sales
Automotive (commercial vehicles)
Business, industrial, and farm equipment
Wholesale financing
Automotive
Equipment
All other
Leasing
Automotive
Equipment
Loans on commercial accounts receivable and factored commercial accounts receivable
All other business credit

July

188,083

1,714

3,403

31,561
23,768

691
623

24,356
5,466
8,452

June

July

Aug.

June

July

Aug.

1,400

30,390

29,883

29,862

28,677

26,480

28,282

879
502

1,206
65

1,259
1,699

1,318
1,865

1,351
1,644

568
1,076

438
1,363

145
1,579

298
115
-256

-173
94
127

-1,572
73
152

11,701
591
3,246

10,704
624
3,186

11,335
601
3,251

11,404
476
3,502

10,877
530
3,059

12,907
528
3,100

21,270
40,222

3
-14

410
332

560
280

1,171
1,019

1,357
1,128

1,086
1,403

1,168
1,033

947
796

526
1,123

17,748
15,240

-117
371

853
379

331
306

8,150
1,554

8,344
1,358

7,712
1,298

8,268
1,183

7,490
979

7,382
992

These data also appear in the Board's G.20 (422) release. For address, see
inside front cover.




Aug.

1. Not seasonally adjusted,

A38

DomesticNonfinancialStatistics • December 1987

1.53 MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1987
Item

1984

1985

1986
Mar.

Apr.

May

June

July

Aug.

Sept.

141.2
102.6
75.0
27.8
2.19
9.01

140.2
100.8
74.6
27.3
2.08
9.03

9.41

Terms and yields in primary and secondary markets
PRIMARY MARKETS

1
2
3
4
5
6

Conventional mortgages on new homes
Terms
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan/price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount) .
Contract rate (percent per annum)

Yield (percent per year)
7 FHLBB series3
8 HUD series4

96.8
73.7
78.7
27.8
2.64
11.87

104.1
77.4
77.1
26.9
2.53
11.12

118.1
86.2
75.2

130.2
95.0
74.3
27.1

2.48
9.82

2.20

12.37
13.80

11.58

13.81
13.13

12.24

12.28

132.9
99.0
76.1

8.77

136.9
100.9
75.2
27.1
2.23
8.84

8.99

2.40
9.05

134.6
99.4
75.4
27.9
2.42
9.01

10.25
10.07

9.14
9.19

9.21
10.11

9.37
10.44

9.45
10.29

10.22

9.38
10.37

9.37
n.a.

9.91
9.30

8.18

10.02
8.85

10.61
9.40

10.33
9.50

10.38
9.59

10.55
9.77

n.a.
10.40

26.6

131.8
97.5
75.9
28.0

28.0
2.26

SECONDARY MARKETS

Yield (percent per year)
9 FHA mortgages (HUD series)5
10 GNMA securities6

11.61

Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION

Mortgage holdings (end of period)
11 Total
12 FHA/VA-insured
13 Conventional

83,339
35,148
48,191

94,574
34,244
60,331

98,048
29,683
68,365

95,140
21,843
73,297

94,404
21,765
72,639

94,064
21,999
72,065

94,064
21,892
72,173

94,154
21,730
72,424

94,600
21,555
73,045

94,884
21,620
73,264

Mortgage transactions (during period)
14 Purchases

16,721

21,510

30,826

1,435

2,118

1,718

1,690

1,569

1,613

1,743

Mortgage commitments7
15 Contracted (during period)
16 Outstanding (end of period)

21,007
6,384

20,155
3,402

32,987
3,386

2,805
3,539

3,208
4,421

1,726
4,410

1,745
4,448

2,373
5,071

2,276
5,690

1,842
5,627

9,283
910
8,373

12,399
841
11,559

13,517
746
12,771

12,940
717
12,223

12,492
708
11,784

12,442
688
11,754

12,598
382
11,903

12,834
684
12,150

Mortgage transactions (during period)
20 Purchases
21

21,886
18,506

44,012
38,905

103,474
100,236

9,394
9,143

9,777
9,848

7,995
7,767

7,864
7,447

7,252
6,831

Mortgage commitments9
22 Contracted (during period)

32,603

48,989

110,855

9,669

8,408

7,182

7,330

5,611

FEDERAL H O M E LOAN MORTGAGE CORPORATION

Mortgage holdings (end of period)8
17 Total
18 FHA/VA
19 Conventional

1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; compiled by the Federal Home Loan Bank
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages; from Department of Housing and Urban Development.
5. Average gross yields on 30-year, minimum-downpayment, Federal Housing
Administration-insured first mortgages for immediate delivery in the private
secondary market. Based on transactions on first day of subsequent month. Large
monthly movements in average yields may reflect market adjustments to changes
in maximum permissable contract rates.




A
T

|

n a.

n.a.

1
t

6. Average net yields to investors on Government National Mortgage Association guaranteed, mortgage-backed, fully modified pass-through securities, assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying
the prevailing ceiling rate. Monthly figures are averages of Friday figures from the
Wall Street Journal.
7. Includes some multifamily and nonprofit hospital loan commitments in
addition to 1- to 4-family loan commitments accepted in FNMA's free market
auction system, and through the FNMA-GNMA tandem plans.
8. Includes participation as well as whole loans.
9. Includes conventional and government-underwritten loans. FHLMC's mortgage commitments and mortgage transactions include activity under mortgage/
securities swap programs, while the corresponding data for FNMA exclude swap
activity.

Real Estate

A39

1.54 MORTGAGE DEBT OUTSTANDING 1
Millions of dollars, end of period
1987

1986
Type of holder, and type of property

1984

1985

1986
Q2

Q3

Q4

Ql

Q2

1 All holders

2,035,238

2,269,173

2,565,867

2,386,022

2,471,574

2,565,867

2,658,942

2,744,930

7 1- to 4-family
3 Multifamily
4 Commercial
5

1,318,545
185,604
419,444
111,645

1,467,409
214,045
482,029
105,690

1,666,357
246,879
555,825
96,806

1,544,392
229,405
511,038
101,187

1,607,799
237,661
526,535
99,579

1,666,357
246,879
555,825
96,806

1,709,863
259,309
596,507
93,263

1,770,953
266,913
615,264
91,800

1,269,702
379,498
196,163
20,264
152,894
10,177

1,390,394
429,196
213,434
23,373
181,032
11,357

1,506,422
502,534
235,814
31,173
222,799
12,748

1,435,437
456,163
221,640
26,799
195,484
12,240

1,464,213
474,658
228,593
28,623
204,996
12,446

1,506,422
502,534
235,814
31,173
222,799
12,748

1,557,014
517,271
241,512
31,745
230,771
13,243

1,600,779
542,575
251,701
33,585
243,399
13,890

709,718
528,791
75,567
104,896
464
156,699
14,120
18,938
111,175
12,466
23,787

760,499
554,301
89,739
115,771
688
171,797
12,381
19,894
127,670
11,852
28,902

777,312
558,412
97,059
121,236
605
192,975
12,763
20,847
148,367
10,998
33,601

768,435
556,039
92,563
119,195
638
180,041
12,608
20,181
135,924
11,328
30,798

772,175
557,938
94,227
119,406
604
185,269
12,927
20,709
140,213
11,420
32,111

777,312
558,412
97,059
121,236
605
192,975
12,763
20,847
148,367
10,998
33,601

809,967
557,065
103,698
148,688
516
194,689
12,832
20,820
150,592
10,445
35,087

823,217
567,262
105,649
149,804
502
198,089
12,832
20,820
154,192
10,245
36,898

158,993
2,301
585
1,716
1,276
213
119
497
447

166,928
1,473
539
934
733
183
113
159
278

203,800
889
47
842
48,421
21,625
7,608
8,446
10,742

161,398
876
49
827
570
146
66
111
247

159,505
887
48
839
457
132
57
115
153

203,800
889
47
842
48,421
21,625
7,608
8,446
10,742

199,509
687
46
641
48,203
21,390
7,710
8,463
10,640

196,498
665
45
620
48,085
21,157
7,808
8,553
10,567

4,816
2,048
2,768
87,940
82,175
5,765
52,261
3,074
49,187
10,399
9,654
745

4,920
2,254
2,666
98,282
91,966
6,316
47,498
2,798
44,700
14,022
11,881
2,141

5,047
2,386
2,661
97,895
90,718
7,177
39,984
2,353
37,631
11,564
10,010
1,554

5,094
2,449
2,645
97,295
90,460
6,835
43,369
2,552
40,817
14,194
11,890
2,304

4,966
2,331
2,635
97,717
90,508
7,209
42,119
2,478
39,641
13,359
11,127
2,232

5,047
2,386
2,661
97,895
90,718
7,177
39,984
2,353
37,631
11,564
10,010
1,554

5,177
2,447
2,730
95,140
88,106
7,034
37,362
2,198
35,164
12,940
11,774
1,166

5,254
2,504
2,750
94,064
87,013
7,051
35,833
2,108
33,725
12,597
11,172
1,425

44 Mortgage pools or trusts 6
45 Government National Mortgage Association
46
1- to 4-family
47
Multifamily
48 Federal Home Loan Mortgage Corporation
49
1- to 4-family
50
Multifamily
51 Federal National Mortgage Association
5?
1- to 4-family
53
Multifamily
54 Farmers Home Administration
55
1- to 4-family
56
Multifamily
57
Commercial
58
Farm

332,057
179,981
175,589
4,392
70,822
70,253
569
36,215
35,965
250
45,039
21,813
5,841
7,559
9,826

415,042
212,145
207,198
4,947
100,387
99,515
872
54,987
54,036
951
47,523
22,186
6,675
8,190
10,472

529,763
260,869
255,132
5,737
171,372
166,667
4,705
97,174
95,791
1,383
348
142
n.a.
132
74

475,615
229,204
223,838
5,366
125,903
123,676
2,227
72,377
71,153
1,224
48,131
21,987
7,170
8,347
10,627

522,721
241,230
235,664
5,566
146,871
143,734
3,137
86,359
85,171
1,188
48,261
21,782
7,353
8,409
10,717

529,763
260,869
255,132
5,737
171,372
166,667
4,705
97,174
95,791
1,383
348
142
n.a.
132
74

571,705
277,386
271,065
6,321
186,295
180,602
5,693
107,673
106,068
1,605
351
154
n.a.
127
70

612,408
290,512
283,892
6,620
200,284
194,238
6,046
121,270
119,540
1,730
342
149
n.a.
126
67

59 Individuals and others 7
60
1- to 4-family
61
Multifamily
6? Commercial
63 Farm

274,486
154,315
48,670
42,423
29,078

296,809
165,835
55,424
49,207
26,343

325,882
180,896
66,133
54,845
24,008

313,572
175,107
61,198
51,977
25,290

325,135
183,255
63,886
53,396
24,598

325,882
180,896
66,133
54,845
24,008

330,714
179,517
70,146
57,866
23,185

335,245
180,442
72,809
59,190
22,804

6 Selected financial institutions
7 Commercial banks
8
1- to 4-family
9
Multifamily
10
Commercial
Farm
11
1?
13
14
15
16
17
18
19
70
71
22

Savings institutions3
1- to 4-family
Multifamily
Commercial
Farm
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
Finance companies

7,3 Federal and related agencies
74 Government National Mortgage Association
?5
1- to 4-family
76
Multifamily
77 Farmers Home Administration
78
1- to 4-family
29
Multifamily
30
Commercial
Farm
31
32
33
34
35
36
37
38
39
40
41
4?
43

Federal Housing and Veterans Administration
1- to 4-family
Multifamily
Federal National Mortgage Association
1- to 4-family
Multifamily
Federal Land Banks
1- to 4-family
Farm
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily

1. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve. Multifamily debt refers
to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not bank trust
departments.
3. Includes savings banks and savings and loan associations. Beginning 1987:1,
data reported by FSLIC-insured institutions include loans in process and other
contra assets.
4. Assumed to be entirely 1- to 4-family loans.




5. FmHA-guaranteed securities sold to the Federal Financing Bank were
reallocated from FmHA mortgage pools to FmHA mortgage holdings in 1986: 4,
because of accounting changes by the Farmers Home Administration.
6. Outstanding principal balances of mortgage pools backing securities insured
or guaranteed by the agency indicated.
7. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured
pension funds, credit unions, and other U.S. agencies.

A40

DomesticNonfinancialStatistics • December 1987

1.55 CONSUMER INSTALLMENT CREDIT 14 Total Outstanding, and Net Change, seasonally adjusted
Millions of dollars
1986
Dec.

1987
Jan.

Feb.

Mar.

Apr.

May

June

July r

Aug.

Amounts outstanding (end of period)
1 Total

522,805

577,784

577,784

578,578

579,591

579,913

583,595

583,276

587,821

591,175

595,832

By major holder
Commercial banks
Finance companies
Credit unions
Retailers
Savings institutions
Gasoline companies

242,084
113,070
72,119
38,864
52,433
4,235

261,604
136,494
77,857
40,586
58,037
3,205

261,604
136,494
77,857
40,586
58,037
3,205

261,694
135,802
78,284
40,617
58,906
3,276

262,105
136,009
78,492
40,644
59,031
3,311

261,933
136,050
78,569
40,469
59,488
3,405

263,433
137,091
79,255
40,467
59,826
3,522

263,463
136,398
79,476
40,318
60,045
3,576

264,396
138,038
80,585
40,287
60,983
3,532

265,085
138,745
81,492
40,364
61,910
3,580

265,818
140,689
82,233
40,391
63,059
3,643

By major type of credit
8 Automobile
9
Commercial banks
10
Credit unions
11
Finance companies
12
Savings institutions

208,057
93,003
35,635
70,091
9,328

245,055
100,709
39,029
93,274
12,043

245,055
100,709
39,029
93,274
12,043

245,472
101,389
39,243
92,617
12,223

246,064
101,688
39,347
92,780
12,249

246,290
101,528
39,386
93,032
12,344

247,663
101,781
39,730
93,738
12,414

247,578
102,189
39,841
93,089
12,459

250,130
102,810
40,396
94,270
12,654

250,980
102,829
40,851
94,455
12,846

253,887
103,387
41,222
96,193
13,085

13 Revolving
14
Commercial banks
15
Retailers
16
Gasoline companies
17
Savings institutions
18
Credit unions

122,021
75,866
34,695
4,235
5,705
1,520

134,938
85,652
36,240
3,205
7,713
2,128

134,938
85,652
36,240
3,205
7,713
2,128

134,916
85,395
36,277
3,276
7,829
2,139

135,663
86,053
36,308
3,311
7,845
2,145

135,166
85,567
36,141
3,405
7,906
2,147

136,706
86,929
36,139
3,522
7,951
2,166

136,869
87,133
36,009
3,576
7,980
2,172

137,401
87,590
35,971
3,532
8,105
2,202

138,741
88,685
36,021
3,580
8,228
2,227

139,769
89,476
36,022
3,643
8,381
2,247

19 Mobile home
20
Commercial banks
21
Finance companies
22
Savings institutions

25,488
9,538
9,391
6,559

25,710
8,812
9,028
7,870

25,710
8,812
9,028
7,870

25,852
8,787
9,077
7,988

25,789
8,739
9,045
8,005

25,614
8,725
8,823
8,067

25,626
8,698
8,816
8,112

25,542
8,615
8,785
8,142

25,685
8,609
8,807
8,269

25,860
8,626
8,839
8,395

25,692
8,518
8,623
8,551

23 Other
24
Commercial banks
25
Finance companies
26
Credit unions
27
Retailers
28
Savings institutions

167,239
63,677
33,588
34,964
4,169
30,841

172,081
66,431
34,192
36,700
4,346
30,412

172,081
66,431
34,192
36,700
4,346
30,412

172,338
66,122
34,108
36,901
4,340
30,867

172,076
65,625
34,183
36,999
4,336
30,932

172,844
66,113
34,196
37,036
4,327
31,172

173,600
66,026
34,537
37,359
4,328
31,349

173,287
65,527
34,524
37,463
4,310
31,463

174,605
65,387
34,962
37,986
4,315
31,955

175,594
64,945
35,452
38,413
4,343
32,441

176,485
64,436
35,874
38,763
4,369
33,043

2
3
4
5
6
7

Net change (during period)
29 Total

76,622

54,979

128

794

1,013

322

3,682

-319

4,545

3,354

4,657

By major holder
Commercial banks
Finance companies
Credit unions
Retailers 3
Savings institutions
Gasoline companies

32,926
23,566
6,493
1,660
12,103
-126

19,520
23,424
5,738
1,722
5,604
-1,030

-1,345
180
349
90
869
-16

90
-692
427
31
869
71

411
207
208
27
125
35

-172
41
77
-175
457
94

1,500
1,041
686
-2
338
117

30
-693
221
-149
219
54

933
1,640
1,109
-31
938
-44

689
707
907
77
927
48

733
1,944
741
27
1,149
63

By major type of credit
36 Automobile
37
Commercial banks
38
Credit unions
39
Finance companies
40
Savings institutions

35,705
9,103
5,330
17,840
3,432

36,998
7,706
3,394
23,183
2,715

2,050
488
175
1,086
301

417
680
214
-657
180

592
299
104
163
26

226
-160
39
252
95

1,373
253
344
706
70

-85
408
111
-649
45

2,552
621
555
1,181
195

850
19
455
185
192

2,907
558
371
1,738
239

41 Revolving
42
Commercial banks
43
Retailers
44
Gasoline companies
45
Savings institutions
46
Credit unions

22,401
17,721
1,488
-126
2,771
547

12,917
9,786
1,545
-1,030
2,008
608

547
226
103
-16
184
50

-22
-257
37
71
116
11

747
658
31
35
16
6

-497
-486
-167
94
61
2

1,540
1,362
-2
117
45
19

163
204
-130
54
29
6

532
457
-38
-44
125
30

1,340
1,095
50
48
123
25

1,028
791
1
63
153
20

47 Mobile home
48
Commercial banks
49
Finance companies
50
Savings institutions

778
-85
-405
1,268

222
-726
-363
1,311

-21
-139
-63
181

142
-25
49
118

-63
-48
-32
17

-175
-14
-222
62

12
-27
-7
45

-84
-83
-31
30

143
-6
22
127

175
17
32
126

-168
-108
-216
156

51 Other
52
Commercial banks
53
Finance companies
54
Credit unions
55
Retailers
56
Savings institutions

17,738
6,187
6,131
616
172
4,632

4,842
2,754
604
1,736
177
-429

-2,448
-1,920
-843
124
-13
204

257
-309
-84
201
-6
455

-262
-497
75
98
-4
65

768
488
13
37
-9
240

756
-87
341
323
1
111

-313
-499
-13
104
-18
114

1,318
-140
438
523
5
492

989
-442
490
427
28
486

891
-509
422
350
26
602

30
31
32
33
34
35

1. The Board's series cover most s h o r t - and intermediate-term credit extended to individuals that is scheduled to be repaid (or has the option of
repayment) in two or more installments.




2. More detail for finance companies is available in the G.20 statistical release,
3. Excludes 30-day charge credit held by travel and entertainment companies,
4. All data have been revised.

Consumer Installment

Credit

A41

1.56 TERMS OF CONSUMER INSTALLMENT CREDIT
Percent unless noted otherwise
1987
Item

1984

1985

1986
Feb.

Mar.

Apr.

May

June

July

Aug.

INTEREST RATES

1
2
3
4
5
6

Commercial banks 1
48-month new car 2
24-month personal
120-month mobile home
Credit card
Auto finance companies
New car
Used car

13.71
16.47
15.58
18.77

12.91
15.94
14.96
18.69

11.33
14.82
13.99
18.26

10.35
14.10
13.42
18.10

n.a.
n.a.
n.a.
n.a.

n.a.
n.a.
n.a.
n.a.

10.23
14.00
13.23
17.92

n.a.
n.a.
n.a.
n.a.

n.a.
n.a.
n.a.
n.a.

10.37
14.22
13.24
17.85

14.62
17.85

11.98
17.59

9.44
15.95

10.78
14.56

10.59
14.40

10.81
14.49

10.69
14.45

10.64
14.47

10.52
14.53

9.63
14.53

48.3
39.7

51.5
41.4

50.0
42.6

53.6
44.7

53.7
44.9

54.3
45.0

53.5
45.2

53.6
45.4

53.4
45.5

52.1
45.4

88
92

91
94

91
97

94
99

94
99

94
98

93
98

93
98

93
98

93
98

9,333
5,691

9,915
6,089

10,665
6,555

10,602
7,075

10,641
7,145

10,946
7,234

11,176
7,373

11,214
7,479

11,267
7,527

11,374
7,763

OTHER TERMS 3

7
8
9
10
11
12

Maturity (months)
New car
Used car
Loan-to-value ratio
New car
Used car
Amount financed (dollars)
New car
Used car

1. Data for midmonth of quarter only.
2. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.




3. At auto finance companies.
NOTE. These data also appear in the Board's G.19 (421) release. For address,
see inside front cover.

A42

DomesticNonfinancialStatistics • December 1987

1.57 FUNDS RAISED IN U.S. CREDIT MARKETS
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1984'
Transaction category, sector

1982

1983r

1984r

1985'

1985'

1987

1986'

1986r
HI

H2

HI

HI

H2

H2

HI

Nonfinancial sectors

22

Other

Farm

753.9

854.8

833.4

717.3

790.4

722.7

986.8

676.9

989.9

568.3

161.3
162.1
-.9

186.6
186.7
-.1

198.8
199.0
-.2

223.6
223.7
-.1

214.3
214.7
-.3

190.4
190.7
-.2

207.2
207.3
-.1

204.8
204.9
-.1

242.5
242.5
-.1

207.2
207.4
-.1

221.5
222.0
-.5

151.4
151.7
-.4

363.6
253.4
53.7
16.0
183.6
117.5
14.2
49.3
2.6

555.1
313.6
50.4
46.1
217.1
129.7
25.1
63.2
-.9

631.1
447.8
136.4
73.8
237.7
151.9
29.2
62.5
-6.0

619.0
445.0
35.4
121.7
298.0
199.4
33.0
73.9
-8.3

526.9
284.7
33.8
22.5
228.5
139.5
27.8
62.6
-1.4

583.3
342.5
67.0
69.8
205.7
119.9
22.4
63.8
-.4

518.0
350.4
67.0
62.2
221.2
139.2
25.0
59.5
-2.5

744.3
545.2
205.8
85.3
254.2
164.7
33.4
65.5
-9.5

469.6
363.4
-16.9
135.3
245.0
163.8
31.2
58.9
-8.9

768.4
546.7
87.7
108.1
350.9
234.9
34.8
88.9
-7.7

417.0
407.1
20.0
89.0
298.1
217.5
27.7
62.5
-9.6

79.3r
19.3'
50.4r
- 6 . 1r
15.8

110.2
56.6
23.2
-.8
31.3

241.5
90.4
67.1
21.7
62.2

183.3
94.6
38.6
14.6
35.5

164.0
65.8
66.5
-9.3
41.0

242.2
94.7
71.2
26.6
49.7

240.8
86.2
63.0
16.8
74.7

167.5
95.3
21.0
14.4
36.8

199.1
93.9
56.2
14.8
34.2

106.2
71.0
12.2
-13.1
36.2

221.8
60.6
120.8
-5.5
45.9

9.9
15.7
-40.2
4.5
29.9

227.6'
21.5
90.0'
6.8
40.2
69.0'

363.6
34.0
188.2
4.1
77.0
60.3

555.1
27.4
234.6
-.1
97.0
196.0

631.1
91.8
293.4
-13.9
93.1
166.7

619.0
46.4
279.9
-15.1
115.9
192.0

526.9
16.2
235.0
-.5
101.8
174.3

583.3
38.6
234.2
.4
92.2
217.8

518.0
56.3
259.8
-7.0
85.7
123.2

744.3 469.6
3.1
127.2
327.1 232.8
-20.8 -16.8
96.2
100.5
210.3 154.3

768.4
89.7
326.9
-13.3
135.5
229.7

417.0
28.6
224.0
-19.5
92.8
91.2

17.3
3.1
3.6
6.5
4.1

8.3
3.8
-6.6
6.2
5.0

1.2
3.8
-2.8
6.2
-6.0

9.0
2.6
-1.0
11.5
-4.0

36.1
1.3
-1.3
16.6
19.5

-19.4
6.3
-11.9
-4.3
-9.6

-5.8
5.5
-5.8
2.8
-8.2

8.2
2.1
.1
9.6
-3.7

21.5
6.2
1.5
19.1
-5.3

-3.5
-1.1
-3.5
3.9
-2.7

-12.6
-1.1
-3.5
-5.3
-2.8

404.8r

18

550.2

16.0
6.6'
-5.5
1.9
13.0

By sector and instrument

388.9

227.6'
148.3
44.2
18.7
85.4
50.5
5.4
25.2
4.2

1 Total net borrowing by domestic nonfinancial sectors

567.5

762.2

856.0

842.4

753.4

771.0

716.9

995.0

698.3

986.4

555.7

Financial sectors
31 Total net borrowing by financial sectors . . .
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50

By instrument
U.S. government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. government
Private financial sectors
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks
By sector
Sponsored credit agencies
Mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Savings and loan associations
Finance companies
REITs
CMO Issuers

90.3r

99.3

151.9

199.0

291.1

153.0

150.7

175.1

222.8

238.8

343.4

317.5

64.9
14.9
49.5
.4
25.4'
12.7r
.1
1.9
9.9
.8

67.8
1.4
66.4

74.9
30.4
44.4

77.3
31.5
45.8

96.8
26.6
70.3

80.5
30.8
.4
.6
32.1
16.5

73.5
41.5
.4
.7
16.0
14.9

78.3
48.9

-.1
21.3
-7.0

77.0
36.2
.4
.7
24.1
15.7

174.3
13.2
161.4
-.4
116.8
68.7
.1
4.0
24.2
19.8

72.5
29.4
43.1

31.5
17.4

101.5
20.6
79.9
1.1
97.4
48.6
.1
2.6
32.0
14.2

2.3
14.6
12.5

106.3
14.6
89.5
2.2
116.5
48.3
.1
2.9
49.4
15.9

133.8
6.4
126.6
.8
105.0
70.9
.6
4.0
15.1
14.4

214.8
20.0
196.3
-1.5
128.6
66.5
-.5
4.0
33.4
25.2

180.2
7.8
171.8
.5
137.4
92.5
.2
-7.4
38.3
13.6

1.4
66.4
31.5
5.0
12.1
-2.1
12.9
-.1
3.7

30.4
44.4
77.0
7.3
15.6
22.7
18.9
.1
12.4

21.7
79.9
97.4
-4.9
14.5
22.3
53.9
-.7
12.2

12.9
161.4
116.8
-3.6
4.6
29.3
50.2
-.3
36.7

29.4
43.1
80.5
19.8
20.4
22.0
8.2
.2
9.8

31.5
45.8
73.5
-5.3
10.8
23.3
29.6
.1
15.0

26.6
70.3
78.3
-4.7
10.2
14.2
49.7
-.6
9.5

16.8
89.5
116.5
-5.0
18.9
30.4
58.1
-.8
14.9

7.2
126.6
105.0
-2.7
-1.7
25.5
53.1
.6
30.2

18.5
196.3
128.6
-4.6
10.9
33.1
47.2
-1.3
43.3

8.3
171.8
137.4
4.4
21.6
30.7
27.2
-.2
53.7

1,217.8

937.1

1,329.8

873.2

346.6 340.2
205.8 -16.9
135.7 212.4
254.2 245.6
93.9
71.0
17.7
59.2
73.7
21.0
48.6
46.1

437.8
87.7
173.5
350.4
60.6
121.3
31.7
66.9

331.0
20.0
180.5
298.3
15.7
-51.0
37.5
41.1

15.3
49.5
25.4'
11.7
6.8
2.5
4.5
-.2'
.2'

*

*

All sectors
51 Total net borrowing

495. 1'

666.8

914.1

52
53
54
55
56
57
58
59

225.9
44.2
38.0'
85.4
19.3'
46.7r
5.7
30.C

254.4
53.7
36.5
183.6
56.6
26.7
26.9
28.4

273.8
50.4
86.1
217.4
90.4
61.1
52.0
82.9

U.S. government securities .
State and local obligations ..
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans

1,054.9 1,133.5
324.2
136.4
126.1
237.7
94.6
38.3
52.8
44.8

389.0
35.4
192.9
298.0
65.8
69.5
26.4
56.5

906.4

921.8

892.1

263.1
33.8
54.6
228.8
94.7
70.4
75.4
85.7

284.5
67.0
117.6
206.0
86.2
51.8
28.6
80.0

301.7
67.0
116.6
221.2
95.3
17.5
31.8
41.1

External corporate equity funds raised in United States
60 Total new share issues

25.8'

61.8

-36.4

19.9

91.6

-47.9

-24.9

3.0

36.7

100.8

82.3

61.8

61
62
63
64
65

8.8'
17.0r
11.4
4.2r
1.4r

27.2
34.6
28.3
2.6
3.7

29.3
-65.7
-74.5
7.8
.9

85.7
-65.8
-81.5
12.0
3.7

163.3
-71.7
-80.8
8.3
.7

26.5
-74.4
-79.5
6.8
-1.6

32.2
-57.1
-69.4
8.8
3.5

64.2
-61.2
-75.5
11.2
3.1

107.1
-70.4
-87.5
12.8
4.3

155.5
-54.7
-68.7
7.5
6.6

171.1
-88.7
-92.7
9.1
-5.1

123.3
-61.5
-70.0
6.7
1.9

Mutual funds
All other
Nonfinancial corporations
Financial corporations
Foreign shares purchased in United States




Flow of Funds

A43

1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates.
1984'

Transaction category, or sector

1982

1983'

1984'

1985'

1986'

1985'

1987

1986'
HI

H2

HI

H2

HI

H2

HI

1 Total funds advanced in credit markets to domestic
nonfinancial sectors

sss^

550.2

753.9

854.8

833.4

717.3

790.4

722.7

986.8

676.9

989.9

568.3

By public agencies and foreign
? Total net advances
3 U.S. government securities
4
Residential mortgages
5
FHLB advances to savings and loans
Other loans and securities
6

114.9'
22.3'
61.0
.8
30.8

114.0
26.3
76.1
-7.0
18.6

157.6
39.3
56.5
15.7
46.2

202.3
47.1
94.6
14.2
46.3

317.3
84.8
158.5
19.8
54.2

132.7
27.6
55.5
16.5
33.2

182.5
51.0
57.4
14.9
59.2

195.8
50.3
88.6
12.5
44.4

208.7
43.9
100.7
15.9
48.2

264.1
74.0
123.8
14.4
52.0

370.6
95.6
193.2
25.2
56.5

241.3
46.3
164.9
13.6
16.5

7
8
9
10

Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign

15.9
65.5
9.8
23.7 R

9.7
69.8
10.9
23.7

17.1
74.3
8.4
57.9

16.8
101.5
21.6
62.3

9.5
175.5
30.2
102.1

7.5
73.3
12.0
39.8

26.6
75.2
4.8
75.9

25.1
96.4
27.5
46.8

8.4
106.7
15.8
77.8

10.8
128.2
13.2
111.9

8.2
222.8
47.2
92.3

-4.1
167.7
10.8
66.9

11
12

Agency and foreign borrowing not in line 1
Sponsored credit agencies and mortgage pools
Foreign

64.9
16.0

67.8
17.3

74.9
8.3

101.5
1.2

174.3
9.0

72.5
36.1

77.3
-19.4

96.8
-5.8

106.3
8.2

133.8
21.5

214.8
-3.5

180.2
-12.6

13
14
15
16
17
18
19

Private domestic funds advanced
Total net advances
U.S. government securities
State and local obligations
Corporate and foreign bonds
Residential mortgages
Other mortgages and loans
LESS: Federal Home Loan Bank advances

354.8'
203.6'
44.2
14.7'
-5.3
98.3'
.8

521.3
228.1
53.7
14.5
55.0
162.4
-7.0

679.5
234.5
50.4
35.1
98.2
276.9
15.7

755.2
277.0
136.4
40.8
86.4
228.8
14.2

699.3
304.2
35.4
84.3
73.8
221.4
19.8

693.2
235.5
33.8
17.3
111.7
311.5
16.5

665.7
233.5
67.0
53.0
84.8
242.3
14.9

618.0
251.3
67.0
39.7
75.5
197.0
12.5

892.5
302.7
205.8
42.0
97.4
260.6
15.9

568.0
266.3
-16.9
100.8
71.3
161.0
14.4

830.6
342.2
87.7
67.8
76.4
281.8
25.2

494.6
284.7
20.0
61.6
80.3
61.6
13.6

274.2'
110.2
22.9'
96.6'
44.5'

395.8
144.3
135.6
100.1
15.8

559.8
168.9
150.2
121.8
118.9

579.5
186.3
83.0
156.0
154.2

726.1
194.7
105.8
175.9
249.6

587.5
192.2
167.0
148.3
80.0

532.1
145.5
133.5
95.3
157.8

483.8
143.3
54.5
139.4
146.5

675.2
229.4
111.4
172.5
161.9

638.9
117.2
94.5
170.6
256.7

813.2
272.3
117.2
181.2
242.4

485.1
49.9
85.7
213.3
136.2

274.2'
196.2'
25.4'

395.8
215.4
31.5

559.8
316.9
77.0

579.5
213.2
97.4

726.1
272.8
116.8

587.5
280.2
80.5

532.1
353.5
73.5

483.8
191.4
78.3

675.2
235.0
116.5

638.9
252.2
105.0

813.2
293.4
128.6

485.1
15.1
137.4

52.6'
-31.4
6.1
106.0'
-28.1'

148.9
16.3
-5.3
109.7
28.2

165.9
5.4
4.0
118.6
37.9

268.9
17.7
10.3
141.0
99.9

336.4
12.4
1.7
152.5
169.8

226.8
10.9
-2.8
162.5
56.1

105.1
-.1
10.8
74.6
19.7

214.1
21.3
13.9
118.6
60.3

323.6
14.2
6.6
163.4
139.4

281.7
12.3
-4.2
138.6
134.9

391.1
12.5
7.6
166.4
204.6

332.6
41.8
-4.4
234.4
60.8

106.0'
68.5'
25.0
-5.7'
18.2'

157.0
99.3
40.3
-11.6
12.0
17.0

196.7
123.6
30.4
5.2
9.3
28.1

273.2
145.3
47.6
11.8
43.9
24.6

90.1
43.4
-.8
34.4
-4.8
17.9

186.2
162.8
10.4
-26.4
15.6
23.8

207.1
84.3
50.4
36.9
3.0
32.5

212.5
156.2
14.8
15.4
3.5
22.6

333.9
134.5
80.4
8.2
84.2
26.6

34.1
37.4
-68.7
68.1
-16.3
13.6

146.1
49.4
67.2
.8
6.7
22.1

146.9
69.9
21.7
39.0
7.7
8.5

205.5'
9.7
18.0'
136.0'
33.5'
-2.4'
11.1
-.4

232.8
14.3
28.6
215.7
-39.0
-8.4
18.5
3.1

320.4
8.6
27.9
150.1
49.0
84.9
5.0
-5.1

223.5
12.4
41.4
139.1
8.9
7.2
16.6
-2.1

293.2
14.4
97.7
122.5
43.8
-9.3
18.3
5.9

286.8
13.7
26.0
129.0
24.5
92.0
8.7
-7.1

354.0
3.6
29.8
171.2
73.4
77.9
1.2
-3.1

198.3
15.9
14.6
161.5
10.6
-7.6
12.2
-9.0

248.7
8.8
68.2
116.7
7.1
21.9
21.1
4.9

262.0
10.7
79.9
115.4
46.9
10.0
-.9

324.4
18.2
115.5
129.5
40.6
-18.7
26.5
12.8

10.2
10.0
-28.5
33.9
-4.6
1.5
12.7
-14.9

Private financial intermediation
Credit market funds advanced by private financial
institutions
Commercial banking
71
n
Savings institutions
Insurance and pension funds
7.3
24
Other finance
20

?5
76
27
28
79
30
31
32

Sources of funds
Private domestic deposits and RPs
Credit market borrowing
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net

Private domestic nonfinancial investors
33 Direct lending in credit markets
34
U.S. government securities
35
State and local obligations
36
Corporate and foreign bonds
37
Open market paper
Other
38
19 Deposits and currency
Currency
Checkable deposits
Small time and savings accounts
Money market fund shares
Large time deposits
Security RPs
Deposits in foreign countries

40
41
47
43
44
45
46

*

*

47

Total of credit market instruments, deposits and
currency

311.5'

389.9

517.1

496.7

383.3

473.0

561.1

410.7

582.6

296.0

470.5

157.1

48
49
50

Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds

28.4'
77.3'
-7.7'

20.1
75.9
40.0

20.7
82.4
63.3

23.6
76.7
80.1

37.7
103.8
114.5

17.6
84.7
50.7

23.7
79.9
75.8

27.3
78.3
68.1

21.0
75.6
92.0

37.8
112.5
124.2

37.6
97.9
104.9

43.4
98.1
108.7

25.8'

61.8

-36.4

19.9

91.6

-47.9

-24.9

3.0

36.7

100.8

82.3

61.8

8.8'
17.0'
25.9'
-.1'

27.2
34.6
51.1
10.7

29.3
-65.7
19.7
-56.1

85.7
-65.8
42.8
-22.9

163.5
-71.7
48.2
43.4

26.5
-74.4
-.2
-47.7

32.2
-57.1
39.7
-64.6

64.2
-61.2
58.8
-55.8

107.1
-70.4
26.8
10.0

155.5
-54.7
56.6
44.2

171.1
-88.7
39.7
42.6

123.3
-61.5
65.5
-3.6

MEMO: Corporate equities not included above
SI Total net issues
5?
Mutual fund shares
53
Other equities
54 Acquisitions by financial institutions
5 5 Other net purchases
NOTES BY LINE NUMBER

1. Line 1 of table 1.57.
2. Sum of lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities.
13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33.
Also sum of lines 28 and 47 less lines 40 and 46.
18. Includes farm and commercial mortgages.
26. Line 39 less lines 40 and 46.
27. Excludes equity issues and investment company shares. Includes line 19.
29. Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affiliates, less
claims on forfeign affiliates and dedposits by banking in foreign banks.
30. Demand deposits and note balances at commercial banks.




31. Excludes net investment of these reserves in corporate equities.
32. Mainly retained earnings and net miscellaneous liabilities.
33. Line 13 less line 20 plus line 27.
34-38. Lines 14-18 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 38 includes mortgages.
40. Mainly an offset to line 9.
47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46.
48. Line 2/line 1.
49. Line 20/line 13.
50. Sum of lines 10 and 29.
51. 53. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding may be obtained from Flow of Funds Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.

A44

Domestic Nonfinancial Statistics • December 1987

2.10 NONFINANCIAL BUSINESS ACTIVITY

Selected Measures1

1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1987
Measure

1984

1985

1986
Jan.

Feb.

Mar.

Apr.

May

June

July'

Aug.'

Sept.

1 Industrial production

121.4

123.8

125.1

126.2r

127.1'

127.4'

127.4

128.2r

129.1'

130.6

131.0

131.2

Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials

126.7
127.3
118.0
139.6
124.7
114.2

130.8
131.1
120.2
145.4
130.0
114.2

133.2
132.3
124.5
142.7
136.4
113.9

134.5'
133.3'
125.5'
143.5'
138.8'
114.9'

i36.(r
134.8'
126.4'
146.0'
139.9'
114.9'

136.4'
135.1'
126.7'
146.2'
140.9'
115.2

135.8'
134.5
125.5'
146.4'
140.3'
115.9'

136.9'
135.5'
127.3'
146.3'
141.8'
116.3

137.8'
136.2'
127.2'
148.1'
143.3'
117.2

139.6
138.1
129.2
150.0
144.6
118.3

139.9
138.4
129.3
150.5
144.9
118.9

140.2
138.8
128.9
151.8
145.2
119.0

123.4

126.4

129.1

130.7'

131.6'

132.4'

132.4

133.2'

134.0'

135.5

136.0

136.1

80.5
82.0

80.1
80.2

79.8
78.5

79.6'
78.7'

80.(y
78.7

80.3
78.7

80.2
79.1'

80.4'
79.3'

80.8'
79.8

81.5
80.4

81.6
80.8

81.5
80.8

2
3
4
5
6
7

Industry groupings
8 Manufacturing
Capacity utilization (percent)2
9 Manufacturing
10 Industrial materials industries
11 Construction contracts (1982 = 100)3

135.0

148.0

155.0

155.0

151.0

165.0

162.0

149.0

161.0

163.0

171.0

157.0

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
Retail sales

114.6
101.6
98.4
94.1
120.0
193.4
185.0
164.6
193.5
179.0

118.3
102.4
97.8
92.9
125.0
207.0
198.7
172.8
206.0
190.6

120.8
102.4
96.5
91.2
128.9
219.9
210.2
176.4
219.1
199.9

122.4
101.5
96.3
91.1
131.1
225.9
216.3
178.5
224.3
196.8

122.7
101.6
96.4
91.4
131.5
228.4
218.0
179.1
227.5
206.3

122.9
101.7
96.5
91.4
131.8
229.1
218.6
179.2
228.1
206.8

123.2
101.7
96.6
91.5
132.2
230.3
219.5
178.9
222.5
207.4

123.3
101.7
96.6
91.6
132.4
230.7
220.7
179.9
229.6
207.3

123.5
101.7
96.6
91.6
132.6
231.1
221.2
180.0
228.9
209.6

123.8
102.1
97.0
92.1
132.9
232.5
222.3
180.1
230.3
210.9

124.0
102.2
97.2
92.2
133.1
233.8
224.3
181.9
231.4
214.6

124.2
102.3
97.4
92.6
133.3
235.4
225.6
183.5
232.9
213.7

22
23

Prices 7
Consumer (1967 = 100)
Producer finished goods (1967 = 100) . . .

311.1
291.1

322.2
293.7

328.4
289.6

333.1
291.8

334.4
292.3

335.9
292.6'

337.7
294.9

338.7
295.8'

340.1
296.8

340.8
297.8

342.7
297.2

344.4
296.7

1. A major revision of the industrial production index and the capacity
utilization rates was released in July 1985. See "A Revision of the Index of
Industrial Production" and accompanying tables that contain revised indexes
(1977=100) through December 1984 in the FEDERAL RESERVE BULLETIN, vol. 71
(July 1985), pp. 487-501. The revised indexes for January through June 1985 were
shown in the September BULLETIN.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, Department of Commerce, and other sources.
3. Index of dollar value of total construction contracts, including residential,
nonresidential and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.




5. Based on data in Survey of Current Business (U.S. Department of Commerce).
6. Based on Bureau of Census data published in Survey of Current Business.
7. Data without seasonal adjustment, as published in Monthly Labor Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5,and 6,
and indexes for series mentioned in notes 3 and 7 may also be found in the Survey
of Current Business.
Figures for industrial production for the last two months are preliminary and
estimated, respectively.

Selected Measures

A45

2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1987
Category

1984

1985

1986
Feb.

Mar.

Apr.

May

June

July'

Aug.

Sept.

HOUSEHOLD SURVEY DATA

Noninstitutional population1

178,602

180,440

182,822

184,259

184,436

184,597

184,777

184,941

185,127

185,264

185,428

115,763
113,544

117,695
115,461

120,078
117,834

121,610
119,349

121,479
119,222

121,588
119,335

122,237
119,993

121,755
119,517

122,194
119,952

122,564
120,302

122,128
119,861

101,685
3,321

103,971
3,179

106,434
3,163

108,146
3,236

108,084
3,284

108,545
3,290

109,112
3,335

109,079
3,178

109,508
3,219

109,989
3,092

109,602
3,170

8,539
7.5
62,839

8,312
7.2
62,745

8,237
7.0
62,744

7,967
6.7
62,649

7,854
6.6
62,957

7,500
6.3
63,009

7,546
6.3
62,540

7,260
6.1
63,186

7,224
6.0
62,933

7,221
6.0
62,700

7,089
5.9
63,300

9 Nonagricultural payroll employment3

94,496

97,519

99,610

101,150

101,329

101,598

101,708

101,818

102,126

102,278'

102,410

Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government

19,378
966
4,383
5,159
22,100
5,689
20,797
16,023

19,260
927
4,673
5,238
23,073
5,955
22,000
16,394

18,994
783
4,904
5,244
23,580
6,297
23,099
16,710

18,986
719
5,038
5,315
23,897
6,501
23,759
16,935

18,995
722
5,032
5,333
23,902
6,526
23,842
16,977

19,011
729
5,019
5,348
23,969
6,558
23,926
17,038

19,018
735
4,999
5,344
23,980
6,576
24,025
17,031

19,015
738
5,008
5,350
24,007
6,586
24,083
17,031

19,104
744
5,002
5,363
24,071
6,608
24,214
17,020

19,126'
752'
5,007
5,377'
24,059'
6,628'
24,277'
17,052'

19,182
756
4,974
5,385
24,130
6,626
24,311
17,046

1

2 Labor force (including Armed Forces) 1
3 Civilian labor force
Employment
4
Nonagricultural industries 2
5
Agriculture
Unemployment
Number
6
7
Rate (percent of civilian labor force)
8 Not in labor force
ESTABLISHMENT SURVEY DATA

10
11
12
13
14
15
16
17




A46

Domestic Nonfinancial Statistics • December 1987

2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION
Seasonally adjusted
1986r
Q4

Q1

Q2

1987r

1986r

1987'
Q3

Output (1977 = 100)

Q4

Ql

Q2

1987r

1986'
Q3

Q4

Capacity (percent of 1977 output)

Ql

Q2

Q3

Utilization rate (percent)

1 Total industry

125.9

126.9

128.2

130.9

158.7

159.5

160.4

161.3

79.4

79.5

79.9

81.2

2 Mining
3 Utilities

96.9
109.1

98.8
108.1

99.0
108.3

100.0
110.1

130.8
137.3

130.4
137.7

129.7
138.3

129.0
138.8

74.1
79.4

75.8
78.5

76.3
78.3

77.5
79.3

4 Manufacturing

130.4

131.6

133.2

135.9

163.4

164.5

165.6

166.7

79.8

80.0

80.5

81.5

5 Primary processing
6 Advanced processing

113.4
140.6

114.3
142.0

116.1
143.5

119.1
146.1

137.5
179.1

138.2
180.3

139.0
181.6

139.8
182.9

82.5
78.5

82.7
78.7

83.5
79.0

85.2
79.9

.

114.3

14 Energy materials
Previous cycle
High

1

Low

116.5

118.7

145.8

146.1

146.7

147.2

78.5

78.7

79.4

80.7

121.4
74.7
121.2
122.3
136.4
122.9

122.9
77.0
124.0
125.1
137.7
125.3

125.8
83.1
126.8
128.7

162.2
113.4
140.4
139.6
139.7
145.0

162.3
110.6
142.9
142.4
142.8
148.8

163.1
110.0
143.8
143.4
143.9
149.8

163.9
109.4
144.7
144.4

74.7
67.7
84.7
85.4
96.7
81.4

74.8
67.5
84.8
85.9
95.5
82.6

75.4
70.0
86.2
87.2
95.7
83.6

76.8
76.0
87.7
89.2

97.8

8 Durable goods
9 Metal materials
10 Nondurable goods
11 Textile, paper, and chemical ..
V
13

115.0

120.7
75.4
120.3
120.9
137.0
120.3

7 Materials

98.3

98.7

99.2

121.6

120.3

120.2

120.1

81.2

81.7

82.1

82.7

May

June

July

Aug.

Sept.

Latest cycle
High

2

Low

1986
Sept.

1987'
Jan.

Feb.

Mar.

Apr.

Capacity utilization rate (percent)
15 Total industry

88.6

72.1

86.9

69.5

78.8

79.2

79.7

79.7

79.6

79.9

80.3

81.1

81.2

81.2

16 Mining
17 Utilities

92.8
95.6

87.8
82.9

95.2
88.5

76.9
78.0

73.1
77.5

76.1
78.5

75.8
78.8

75.5
78.2

75.9
76.8

76.5
79.2

76.6
79.0

76.8
80.0

77.4
79.0

78.2
78.8

18 Manufacturing

87.7

69.9

86.5

68.0

79.4

79.6

80.0

80.3

80.2

80.4

80.8

81.5

81.6

81.5

19 Primary processing....
20 Advanced processing..

91.9
86.0

68.3
71.1

89.1
85.1

65.1
69.5

81.5
78.4

82.7
78.2

82.4
79.0

83.1
79.1

83.5
78.7

83.2
79.2

84.0
79.2

85.2
79.8

85.2
80.0

85.2
79.8

21 Materials

92.0

70.5

89.1

68.5

77.7

78.7

78.7

78.7

79.1

79.3

79.8

80.4

80.8

80.8

22 Durable goods
Metal materials
23

91.8
99.2

64.4
67.1

89.8
93.6

60.9
45.7

73.7
65.1

74.4
66.2

74.7
67.8

75.2
68.7

75.0
68.8

75.1
69.7

75.9
71.5

76.5
73.9

77.0
76.6

76.8
77.4

24 Nondurable goods

91.1

66.7

88.1

70.7

84.0

85.1

84.6

84.8

86.5

86.2

86.1

87.7

87.4

87.8

92.8
98.4
92.5

64.8
70.6
64.4

89.4
97.3
87.9

68.8
79.9
63.5

85.0
94.7
81.2

86.4
96.4
83.4

85.4
95.6
82.3

85.8
94.6
82.2

87.5
95.1
83.9

87.1
95.7
83.9

87.1
96.3
83.1

89.2
99.6
84.2

88.9
99.9
84.5

89.4

16
->7
28 Energy materials

94.6

86.9

94.0

82.3

80.6

82.5

81.9

80.8

81.3

82.1

82.8

82.3

82.8

82.8

25

Textile, paper, and
chemical

1. Monthly high 1973; monthly low 1975.
2. Monthly highs 1978 through 1980; monthly lows 1982.




NOTE. These data also appear in the Board's G.3 (402) release. For address, see
inside front cover.

Selected Measures
2.13

INDUSTRIAL PRODUCTION

Indexes and Gross Value

A47

•

Monthly data are seasonally adjusted
1977
Groups

portion

1987

1986
1986
avg.
Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June r

July

Aug."

Sept.*

Index (1977 = 100)
MAJOR MARKET

124.9

125.3

126.0

126.7

126.5

127.2

127.3

127.4

128.4

129.1

130.6

131.0

131.2

57.72
44.77
25.52
19.25
12.94
42.28

133.2
132.3
124.5
142.7
136.4
113.9

133.3
132.2
124.2
142.8
137.0
113.5

134.0
132.7
124.7
143.3
138.7
113.3

134.5
133.1
125.6
143.1
139.2
114.3

135.0
133.7
127.2
142.2
139.7
115.2

134.9
133.6
126.8
142.8
139.1
115.2

136.1
135.0
127.5
144.9
139.7
115.1

136.2
135.0
127.5
145.0
140.4
115.2

137.2
134.5
126.6
144.9
139.9
116.2

137.2
135.8
128.2
145.8
142.1
116.3

137.8
136.2
127.2
148.1
143.3
117.2

139.6
138.1
129.2
150.0
144.6
118.3

139.9
138.4
129.3
150.5
144.9
118.9

140.2
138.8
128.9
151.8
145.2
119.0

6.89
2.98
1.79
1.16
.63
1.19
3.91
1.24
1.19
.96
1.71

116.2
115.1
112.9
97.3
141.8
118.4
117.1
139.5
141.6
125.8
96.0

117.4
117.0
116.8
96.2
155.1
117.3
117.7
141.2
143.5
126.2
96.0

116.3
112.7
107.7
91.9
137.1
120.1
119.0
142.6
144.3
128.8
96.5

118.4
114.6
107.6
92.3
136.0
125.2
121.2
148.1
150.0
131.1
96.3

121.5
117.7
115.6
99.5
145.6
120.8
124.4
153.2
155.1
132.0
99.4

120.0
117.6
117.9
94.3
161.9
117.1
121.9
146.9
148.9
129.1
99.8

122.4
123.5
125.2
105.3
162.1
121.0
121.6
145.2
146.7
130.8
99.3

121.2
121.2
121.6
100.9
159.9
120.5
121.2
142.9
143.8
131.3
99.8

118.1
115.7
111.5
91.8
148.1
121.9
119.9
137.7
139.2
133.5
99.4

120.2
118.0
113.1
91.0
154.2
125.3
121.8
142.2
142.3
133.3
100.7

117.4
114.9
107.9
87.4
146.0
125.4
119.3
133.4
133.4
132.3
101.8

120.7
117.7
112.3
86.4
160.4
125.7
123.0
141.7
142.6
134.8
102.9

121.5
117.2
112.4
76.8

120.1
114.3
107.2
79.1

124.4
124.9
147.5
146.0
135.2
102.7

125.0
124.5
145.1

19 Nondurable consumer goods
70 Consumer staples
Consumer foods and tobacco
7.1
Nonfood staples
22
73
Consumer chemical products
24
Consumer paper products
75
Consumer energy
Consumer fuel
76
Residential utilities
27

18.63
15.29
7.80
7.49
2.75
1.88
2.86
1.44
1.42

127.5
97.0
134.1
131.9
136.5
161.2
147.4
105.7
92.8

126.7
133.6
131.0
136.3
161.1
145.7
106.3
92.0
120.9

127.8
134.4
131.6
137.2
161.7
150.3
105.2
90.8
119.8

128.3
135.0
132.6
137.4
161.0
151.5
105.5
91.7
119.6

129.4
136.0
133.9
138.2
163.1
150.1
106.4
92.2
120.8

129.2
135.9
132.9
139.0
165.9
149.4
106.3
95.0
117.8

129.4
135.9
134.0
137.9
164.7
147.8
105.7
92.5
119.2

129.8
136.5
134.8
138.2
165.7
147.5
105.8
94.1
117.7

129.8
136.4
134.4
138.5
164.7
148.9
106.5
94.5
118.7

131.1
137.7
135.6
139.9
165.9
152.9
106.4
92.1
121.0

130.9
137.6
136.0
139.2
164.4
153.1
105.9
91.9
120.2

132.3
139.1
137.1
141.2
166.8
154.2
108.0
92.7
123.6

132.2
139.2
137.7
140.7
167.1
154.3
106.4
92.4

132.2
139.2
141.1

Equipment
78 Business and defense equipment
79 Business equipment
30
Construction, mining, and farm
31
Manufacturing
Power
37
33
Commercial
Transit
34
35 Defense and space equipment

18.01
14.34
2.08
3.27
1.27
5.22
2.49
3.67

147.1
138.6
59.8
112.0
81.6
214.6
109.2
180.3

148.0
139.3
58.1
113.0
80.3
215.1
113.3
182.0

148.4
139.1
58.0
112.7
80.5
215.4
111.8
184.6

148.1
138.6
56.6
109.6
79.5
217.3
110.7
184.9

147.0
137.1
58.2
108.8
80.2
213.7
108.9
185.8

147.7
138.1
57.2
110.1
79.6
215.9
109.5
185.2

150.1
140.8
56.8
111.5
81.2
218.4
117.4
186.5

150.1
140.8
58.1
110.9
81.7
219.7
114.0
186.6

150.0
140.8
58.6
111.1
82.4
220.9
110.4
186.1

150.8
141.7
61.2
111.5
84.0
222.0
110.1
186.5

153.2
144.2
63.0
117.2
84.0
226.7
105.4
188.6

154.7
146.0
65.0
120.3
82.3
229.0
106.1
188.7

154.9
145.8
66.5
121.6
82.7
227.8
104.5
190.2

155.8
146.6
66.9
122.4
82.3
229.2
104.9
191.5

5.95
6.99
5.67
1.31

124.7
146.4
150.6
128.3

125.9
146.4
151.2
125.8

126.3
149.3
154.1
128.8

126.8
149.7
153.7
132.4

127.9
149.8
154.3
130.3

128.3
148.3
153.3
126.8

128.4
149.4
154.1
128.8

128.5
150.5
155.2
130.3

127.3
150.5
155.5
129.0

128.3
153.8
158.2
135.0

131.5
153.4
158.5
131.1

132.7
154.7
160.3
130.7

132.4
155.5
161.5
129.7

132.6

20.50 119.7
4.92 98.5
5.94 153.9
9.64 109.4
4.64 80.0

118.9
95.3
154.8
108.8
78.4

119.2
97.0
153.5
109.4
78.8

120.4
98.0
154.5
110.7
82.1

120.7
98.8
154.2
111.2
80.3

120.5
99.0
154.0
110.8
79.2

121.5
100.0
155.6
111.5
80.3

121.8
98.9
155.8
112.6
80.8

122.2
96.2
157.1
114.1
81.8

121.6
95.2
156.0
113.9
81.9

124.0
99.2
158.3
115.5
83.6

125.1
98.7
159.4
117.5
86.6

126.3
100.3
159.6
119.0
89.4

126.2
98.9
159.7
119.4

1 Total index
?. Products
Final products
4
Consumer goods
5
Equipment
6 Intermediate products
7 Materials
Consumer goods
8 Durable consumer goods
9 Automotive products
10
Autos and trucks
Autos, consumer
11
Trucks, consumer
V
Auto parts and allied goods
13
14 Home goods
Appliances, A/C and TV
15
16
Appliances and TV
Carpeting and furniture
17
Miscellaneous home goods
18

Intermediate products
36 Construction supplies
37 Business supplies
38 General business supplies
39 Commercial energy products
Materials
40 Durable goods materials
41 Durable consumer parts
Equipment parts
42
43 Durable materials n.e.c
44
Basic metal materials

100.00 125.0

45 Nondurable goods materials
46 Textile, paper, and chemical
materials
47
Textile materials
48
Pulp and paper materials
Chemical materials
49
50 Miscellaneous nondurable materials . . .

10.09 118.3

120.6

120.3

120.2

123.2

123.2

122.5

122.8

125.4

125.3

124.1

126.7

126.5

127.3

118.9
110.6
132.1
117.1
116.5

121.8
116.0
133.7
119.7
117.1

121.3
114.3
133.5
119.5
117.5

121.0
115.6
134.2
118.5
117.6

124.7
116.1
140.2
122.3
118.5

125.0
116.5
137.9
123.4
118.0

123.6
115.8
136.7
121.8
119.0

124.0
118.5
134.7
122.1
119.2

126.9
125.0
137.4
125.0
121.1

126.5

128.5
117.9
144.1
126.7
121.4

128.4
113.9
145.0
127.5

129.4

137.4
125.0
122.0

125.1
111.9
139.0
124.9
120.9

51 Energy materials
52 Primary energy
53 Converted fuel materials

11.69 99.9
7.57 105.5
4.12 89.6

98.0
103.8
87.4

96.9
102.7
86.2

98.7
104.8
87.6

98.8
105.1
87.3

98.9
104.1
89.4

97.6
102.6
88.5

97.0
101.5
88.9

97.5
102.3
88.7

99.3
103.6
91.4

99.4
104.0
91.0

98.9
102.6
92.2

99.4
103.5
92.0

99.4




7.53
1.52
1.55
4.46
2.57

A48

Domestic Nonfinancial Statistics • December 1987

2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value—Continued

Groups

SIC
code

1977
proportion

1986

1987

1986
avg.
Sept.

Oct.

Nov.

Dec

Jan.

Feb.

Mar.

Apr.

May

June'

July

Aug. p

Sept.

Index (1977 = 100)
MAJOR INDUSTRY

15.79
9.83
5.96
84.21
35.11
49.10

103.4
99.6
109.6
129.1
130.9
127.9

99.7
95.8
106.2
129.2
130.3
128.4

100.9
96.2
108.6
129.7
131.2
128.6

102.0
97.5
109.6
130.1
131.7
129.0

101.6
97.1
109.0
131.3
133.4
129.7

102.6
99.4
108.0
130.7
132.7
129.3

102.4
98.8
108.5
131.6
132.9
130.8

101.9
98.3
107.9
132.4
133.7
131.5

101.4
98.6
106.0
132.4
134.6
130.9

103.1
99.2
109.6
133.2
135.7
131.4

103.0
99.2
109.4
134.0
136.9
132.0

103.7
99.3
110.9
135.5
138.4
133.4

103.6
99.9
109.7
136.0
138.6
134.2

104.1
100.7
109.6
136.1
138.7
134.3

10
11.12
13
14

.50
1.60
7.07
.66

124.2
94.7
113.9

73.8
124.1
88.5
121.1

70.9
123.6
89.2
123.9

71.1
129.8
89.6
123.2

76.2
125.4
89.8
122.5

74.1
136.4
91.2
116.1

73.6
131.7
90.9
122.1

71.2
122.3
92.4
123.8

65.7
121.9
93.1
125.4

71.7
127.2
92.1
127.6

70.7
128.8
91.8
128.5

72.4
127.9
91.8
130.2

130.5
92.0
131.2

131.7
92.8

1 Mining and utilities
Mining
2
Utilities
3
4 Manufacturing
Nondurable
5
6
Durable
1
8
9
10

Mining
Metal
Coal
Oil and gas extraction
Stone and earth minerals

11
12
13
14
15

Nondurable
manufactures
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products

20
21
22
23
26

7.96
.62
2.29
2.79
3.15

133.6
96.6
113.2
103.6
136.4

134.4
93.0
110.6
102.6
136.5

133.7
98.2
110.2
103.9
138.8

135.3
96.4
112.2
103.8
139.6

136.7
93.4
113.4
104.9
141.1

134.6
89.9
109.2
106.1
139.7

136.4
99.9
110.8
106.5
139.9

137.3
101.1
112.6
105.4
139.9

136.0
99.6
116.6
105.3
140.5

137.4
106.6
115.7
106.4
141.3

137.7
107.0
117.2
107.7
142.6

138.6
106.5
119.5
109.6
145.2

116.3

16
17
18
19
20

Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products....
Leather and products

27
28
29
30
31

4.54
8.05
2.40
2.80
.53

163.4
133.0
92.1
153.3
61.3

161.7
132.2
93.0
152.4
59.0

164.4
133.3
92.4
154.2
59.4

164.8
132.3
92.5
155.2
61.0

166.4
135.7
93.5
157.1
60.2

166.3
136.4
95.6
155.3
58.9

164.4
135.7
91.6
156.2
59.8

167.6
135.3
92.1
158.6
59.4

169.2
137.3
94.0
160.5
60.2

171.4
138.1
92.6
162.2
61.4

174.1
139.3
92.3
165.4
60.8

175.0
141.2
92.9
167.7
59.2

174.6
142.3
92.3
167.6
61.1

24
25
32

2.30
1.27
2.72

123.4
146.7
120.2

123.8
143.5
118.0

124.6
145.4
117.3

130.3
145.6
118.7

133.5
148.8
119.4

128.5
143.5
121.9

129.6
145.0
118.8

128.9
149.9
119.8

127.8
148.2
120.6

130.3
150.5
117.2

131.1
153.9
117.9

132.6
156.2
119.0

131.0
157.0
117.7

33
331.2
34
35
36

5.33
3.49
6.46
9.54
7.15

75.8
63.4
107.4
141.9
166.5

72.8
60.2
107.8
144.9
166.5

73.1
61.0
108.9
145.0
167.3

75.5
63.5
108.3
144.5
167.9

73.4
61.3
109.6
144.8
170.4

72.8
59.5
108.4
143.4
170.4

75.1
62.3
108.3
145.5
171.0

77.0
65.4
110.5
148.5
168.5

76.1
65.0
109.9
150.4
168.4

77.0
65.7
108.5
149.7
171.1

78.8
68.3
111.1
151.8
170.5

81.4
70.9
111.2
154.4
172.7

84.7

86.1

111.0
154.9
174.4

111.3
155.6
174.4

37
371

9.13
5.25

125.8
110.9

128.9
113.0

127.6
110.3

126.9
109.1

126.8
109.7

129.0
112.0

132.7
117.7

132.2
116.5

127.8
109.8

129.4
112.0

126.5
107.4

127.6
109.4

128.0
109.1

126.7
106.3

72-6.9
38
39

3.87
2.66
1.46

146.1
141.3
99.3

150.4
138.7
99.3

151.2
139.1
100.0

151.1
139.3
100.9

150.1
140.2
103.8

151.9
139.5
101.6

153.0
142.0
101.6

153.4
140.3
103.9

152.3
142.8
101.4

153.1
142.1
101.9

152.4
144.5
101.2

152.4
144.1
100.7

153.7
146.1
100.9

154.4
147.0

4.17

122.2

121.0

124.0

124.4

122.6

121.6

122.3

123.6

122.3

128.8

128.8

131.0

129.0

Durable manufactures
21 Lumber and products
22 Furniture and fixtures
23 Clay, glass, stone products
24
25
26
27
28

Primary metals
Iron and steel
Fabricated metal products
Nonelectrical machinery
Electrical machinery

29 Transportation equipment
30
Motor vehicles and parts
31
Aerospace and miscellaneous
transportation equipment
32 Instruments
33 Miscellaneous manufactures....
Utilities
34 Electric

139.8

146.2
175.0
92.6

Gross value (billions of 1982 dollars, annual rates)
MAJOR MARKET

35 Products, total.

517.5

36 Final
37
Consumer goods.
38
Equipment
39 Intermediate

405.7 1,314.5 1,291.8 1,296.9 1,296.6 1,307.3 1,310.9 1,329.2 1.330.3 1,316.5 1,324.7 1,320.1 1,330.5 1,334.7 1,338.7
272.7
853.8 839.2 843.5 846.5 857.1 860.0 865.3 868.1 857.1 8 6 2 . 8 855.1 865.8 865.4 863.4
133.0
458.2 452.6 453.4 450.0 450.2 450.9 463.9 462.2 459.4 461.9 465.0 464.7 469.3 475.3
111.9
387.6 384.1 390.3 390.2 393.4 390.7 389.5 394.9 393.6 398.4 400.3 402.9 404.5 404.0

1 , 7 0 2 . 2 1 , 6 7 5 . 9 1 , 6 8 7 . 3 1,686.7 1 , 7 0 0 . 7 1 , 7 0 1 . 6 1 , 7 1 8 . 7 1 . 7 2 5 . 2 1 , 7 1 0 . 0 1 , 7 2 3 . 0 1 , 7 2 0 . 4 1 , 7 3 3 . 3 1 , 7 3 9 . 2 1 , 7 4 2 . 7

• A major revision of the industrial production index and the capacity
utilization rates was released in July 1985. See "A Revision of the Index of
Industrial Production" and accompanying tables that contain revised indexes
( 1 9 7 7 = 1 0 0 ) t h r o u g h D e c e m b e r 1984 in t h e FEDERAL RESERVE BULLETIN, v o l . 7 1




(July 1985), pp. 487-501. The revised indexes for January through June 1985 were
shown in the September BULLETIN.
NOTE. These data also appear in the Board's G.12.3 (414) release. For address,
see inside front cover.

Selected Measures

A49

2.14 HOUSING AND CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1987

1986
Item

1984

1985

1986
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June'

July'

Aug.

Private residential real estate activity (thousands of units)
N E W UNITS
1

Permits authorized
2 1-family
3 2-or-more-family

1,682
922
759

1,733
957
777

1,750
1,071
679

1,667
1,028
639

1,862
1,184
678

1,652
1,085
567

1,676
1,204
472

1,719
1,150
569

1,598
1,058
540

1,493
1,009
484

1,517
1,039
478

1,487
993
494

1,502
1,023
479

4 Started
5 1-family
6 2-or-more-family

1,749
1,084
665

1,742
1,072
669

1,805
1,179
626

1,637
1,129
508

1,813
1,233
580

1,816
1,253
563

1,838
1,303
535

1,730
1,211
519

1,643
1,208
435

1,606
1,130
476

1,586
1,088
498

1,598
1,143
455

1,598
1,111
487

7 Under construction, end of period 1 .
8
1-family
9 2-or-more-family

1,051
556
494

1,063
539
524

1,074
583
490

1,125
619
506

1,104
610
494

1,089
609
480

1,096
621
476

1,085
618
467

1,070
623
446

1,061
621
441

1,059
620
439

1,054
625
429

1,054
630
424

1,652
1,025
627

1,703
1,072
631

1,756
1,120
637

1,774
1,158
616

1,894
1,184
710

1,956
1,217
739

1,726
1,107
619

1,689
1,141
548

1,830
1,148
682

1,621
1,158
463

1,601
1,101
500

1,694
1,113
581

1,663
1,052
611

13 Mobile homes shipped

296

284

244

237

251

242

231

228

227

222

231

245

233

Merchant builder activity in
1-family units
14 Number sold
—
15 Number for sale, end of period 1

639
358

688
350

748
361

691
353

768
357

712
358

740
358

720
358

733
359

649'
355'

641
359

675
358

692
360

Price (thousands of dollars)2
Median
16 Units sold

80.0

84.3

92.2

94.0

95.0

98.5

95.2

98.4

96.5

104.y

109.0

104.0

106.5

17

97.5

101.0

112.2

113.6

118.9

122.1

121.3

119.5

118.1

126.6'

135.8

128.7

129.6

2,868

3,217

3,566

3,850

4,060

3,480

3,690

3,680

3,560

3,770

3,500

3,430

3,410

72.3
85.9

75.4
90.6

80.3
98.3

80.4
99.1

80.8
100.6

82.1
100.1

85.0
104.3

85.6
104.9

85.0
105.0

85.2
106.3

85.2
106.0

86.2
107.6

85.1
105.3

10 Completed
11 1-family
12 2-or-more-family

Units sold
EXISTING UNITS ( 1 - f a m i l y )

18 Number sold
Price of units sold (thousands of dollars)
19 Median
20 Average

Value of new construction 3 (millions of dollars)
CONSTRUCTION

21 Total put in place
72
73

24
7.5
26
27
28

Private
Residential
Nonresidential, total
Buildings
Industrial
Commercial
Other
Public utilities and other

79 Public
30 Military
31
Highway
32 Conservation and development...
33 Other

328,643 355,995

388,815

390,646

380,175

384,716

401,644

388,303 396,222r 396,68c 393,925

393,431

399,585

270,978
153,849
117,129

291,665
158,475
133,190

316,589
187,147
129,442

320,417
194,463
125,954

306,826
181,682
125,144

310,170
187,813
122,357

326,453
203,115
123,338

312,203
190,812
121,391

320,483r 321,414' 320,990
199,523 195,871 200,864
120,960' 125,543' 120,126

319,622
197,947
121,675

325,065
200,642
124,423

13,746
39,357
12,547
51,479

15,769
51,315
12,619
53,487

13,747
48,592
13,216
53,887

13,404
54,193
13,787
44,570

13,207
54,809
14,231
42,897

12,094
50,881
14,755
44,627

12,112
53,071
14,776
43,379

11,354
52,285
15,143
42,609

11,492'
50,924'
14,950'
43,594'

13,376'
53,224'
14,926'
44,017'

12,205
49,731
14,644
43,546

11,810
49,367
15,087
45,411

12,582
51,297
14,769
45,775

57,662
2,839
18,772
4,654
31,397

64,326
3,283
21,756
4,746
34,541

72,225
3,919
23,360
4,668
40,278

70,229
4,007
19,958
4,647
41,617

73,348
4,313
21,935
4,954
42,146

74,546
4,100
23,508
5,155
41,783

75,191
2,806
23,260
4,883
44,242

76,100
3,893
23,575
4,792
43,840

75,739'
3,403'
22,673'
5,551'
44,112'

75,266'
4,397'
22,607'
4,839'
43,423'

72,935
4,352
21,704
5,498
41,381

73,809
4,316
22,361
5,298
41,834

74,520
3,934
21,547
6,421
42,618

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 (1) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing
Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices
of existing units, which are published by the National Association of Realtors. All
back and current figures are available from the originating agency. Permit
authorizations are those reported to the Census Bureau from 16,000 jurisdictions
beginning with 1978.

A50
2.15

Domestic Nonfinancial Statistics • December 1987
CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Item

Change from 3 months earlier
(at annual rate)
1986

1986
Sept.

Change from 1 month earlier

1987

1987

1987
Sept.
Dec.

Mar.

Index
level
Sept.
1987
(1967
= 100)1

June

Sept.

May

June

July

Aug.

Sept.

CONSUMER PRICES 2

1 All items

1.8

2 Food
3 Energy items
4 All items less food and energy
5 Commodities
6 Services

4.3

2.5

6.2

4.6

3.6

.3

.4

.2

.5

.2

344.4

4.3
-16.6
4.1
1.7
5.6

3.6
7.4
4.2
3.4
4.7

4.1
-9.9
3.7
1.4
5.1

2.5
26.1
5.2
5.1
5.3

6.5
7.9
4.0
3.8
3.8

1.4
5.0
3.7
3.0
4.2

.5
.2
.3
.3
.3

.7
1.5
.2
.0
.2

-.2
.1
.3
.3
.4

.0
1.7
.4
.1
.5

.5
-.5
.2
.3
.1

334.9
387.4
343.9
273.6
420.2

-.9
6.5
-34.3
2.8
2.6

3.3
1.1
10.6
3.4
2.3

1.8
1.0
-12.5
4.4
3.4

4.3
-6.7
59.8
4.2
.4

4.7
14.3
10.9
-.3
1.4

1.9
-3.0
-3.0
5.1
4.2

.2'
1.4
-1.1'
-.3
.1

.4'
.5
2.8'
.1
.0

.2
-.6
1.5
.3
.1

.0
-1.3
1.5
.3
.2

.3
1.1
-3.7
.6
.7

296.7
286.0
521.8
265.5
311.0

-4.0
-.1

4.2
3.5

-1.2
1.2

7.8
3.3

5.2
4.5

5.1
5.1

.5'
.4

.5'
.5

.8
.5

.5
.3

.0
.5

324.6
315.3

8.4
-28.2
-3.1

2.3
15.3
21.8

-2.7
-.5
8.5

-10.3
50.0
15.9

34.0
15.8
33.7

-5.6
2.1
35.3

4.7'
.6'
2.5

-1.6'
2.5'
4.2

-2.0
2.8
2.9

.1
.5
1.0

.5
-2.7
3.8

238.8
615.4
291.2

PRODUCER PRICES

7 Finished goods
8 Consumer foods
9 Consumer energy
10 Other consumer goods
11 Capital equipment
12 Intermediate materials3
13 Excluding energy
Crude materials
Foods
Energy
16 Other
14

IS

1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers and reflect a
rental equivalence measure of homeownership after 1982.




3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.

Selected Measures

A51

2.16 GROSS NATIONAL PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1987

1986

Account

1984

1985

1986
Q3

Q4

Ql

Q2

Q3

GROSS NATIONAL PRODUCT
1

Total

3,772.2

4,010.3

4,235.0

4,265.9

4,288.1

4,377.7

4,445.1

4,512.0

2
3
4
5

By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services

2,430.5
335.5
867.3
1,227.6

2,629.4
368.7
913.1
1,347.5

2,799.8
402.4
939.4
1,458.0

2,837.1
427.6
940.0
1,469.5

2,858.6
419.8
946.3
1,492.4

2,893.8
396.1
969.9
1,527.7

2,943.7
409.0
982.1
1,552.6

3,003.7
432.6
988.1
1,583.0

664.8
597.1
416.0
141.1
274.9
181.1

641.6
631.6
442.6
152.5
290.1
189.0

671.0
655.2
436.9
137.4
299.5
218.3

660.8
657.3
433.5
131.1
302.4
223.8

660.2
666.6
439.7
132.9
306.7
226.9

699.9
648.2
422.8
128.7
294.1
225.4

702.6
662.3
434.6
129.7
304.9
227.7

696.5
681.1
452.8
133.5
319.3
228.3

67.7
60.5

10.0
13.6

15.7
16.8

3.5
-.9

-6.4
5.1

51.6
48.7

40.3
27.3

15.5
7.7

-58.9
383.5
442.4

-79.2
369.9
449.2

-105.5
376.2
481.7

-110.5
376.6
487.1

-116.9
383.3
500.2

-112.2
397.3
509.5

-118.4
416.5
534.8

-121.7
433.4
555.1

735.9
310.5
425.3

818.6
353.9
464.7

869.7
366.2
503.5

878.5
371.2
507.3

886.3
368.6
517.7

896.2
366.9
529.3

917.1
379.6
537.6

933.5
384.6
548.9

3,704.5
1,581.3
681.5
899.9
1,813.9
376.9

4,000.3
1,637.9
704.3
933.6
1,969.2
403.1

4,219.3
1,693.8
726.8
967.0
2,116.2
425.0

4,262.4
1,703.6
735.8
967.8
2,136.6
425.7

4,294.6
1,698.9
737.3
961.6
2,160.0
429.3

4,326.0
1,738.7
747.0
991.7
2,212.0
426.9

4,404.8
1,763.5
756.7
1,006.8
2,252.2
429.4

4,496.5
1,788.5
776.8
1,011.7
2,289.3
434.1

67.7
40.2
27.5

10.0
7.3
2.7

15.7
4.8
10.9

3.5
-12.1
15.6

-6.4
-4.5
-1.9

51.6
35.2
16.5

40.3
22.1
18.2

15.5
-1.6
17.1

3,501.4

3,607.5

3,713.3

3,718.0

3,731.5

3,772.2

3,795.3

3,831.2

6
7
8
9
10
11
12
13

Gross private domestic investment
Fixed investment
Nonresidential
Structures
Producers' durable equipment
Residential structures
Change in business inventories
Nonfarm

14
15
16

Net exports of goods and services
Exports
Imports

17
18
19

Government purchases of goods and services
Federal
State and local

By major type of product
Final sales, total
Goods
??.
Durable
73
Nondurable
74
Services
25
Structures
20
71

26
27
28

Change in business inventories
Durable goods
Nondurable goods

29 MEMO

Total GNP in 1982 dollars
NATIONAL INCOME

3,028.6

30

3,229.9

3,422.0

3,438.7

3,471.0

3,548.3

3,593.3

n.a.

2,213.9
1,838.8
346.1
1,492.5
375.1
192.2
182.9

2,370.8
1,974.7
372.3
1,602.6
396.1
203.8
192.3

2,504.9
2,089.1
394.8
1,694.3
415.8
214.7
201.1

2,515.1
2,097.9
397.7
1,700.2
417.2
214.9
202.3

2,552.0
2,128.5
403.8
1,724.7
423.5
219.1
204.4

2,589.9
2,163.3
412.2
1,751.1
426.6
220.0
206.7

2,623.4
2,191.4
418.1
1,773.3
432.0
222.5
209.5

2,664.3
2,227.2
424.2
1,803.0
437.1
226.0
211.1

234.5
204.0
30.5

257.3
227.6
29.7

289.8
252.6
37.2

292.5
256.2
36.3

297.8
261.2
36.6

320.9
269.7
51.3

323.1
275.8
47.3

322.1
283.0
39.1

31
32
33
34
35
36
37

Compensation of employees
Wages and salaries
Government and government enterprises
Other
Supplement to wages and salaries
Employer contributions for social insurance
Other labor income

38
39
40

Proprietors' income 1
Business and professional
Farm 1

41

Rental income of persons 2

8.5

9.0

16.7

17.2

18.4

20.0

18.9

42
43
44
45

Corporate profits 1
Profits before tax
Inventory valuation adjustment
Capital consumption adjustment

266.9
240.0
-5.8
32.7

277.6
224.8
-.7
53.5

284.4
231.9
6.5
46.0

286.4
236.3
6.0
44.0

281.1
247.9
-8.9
42.1

294.0
257.0
-11.3
48.2

296.8
268.7
-20.0
48.0

-13.5
48.6

46

Net interest

304.8

315.3

326.1

327.5

321.7

323.6

331.1

339.5

1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).

18.5

n.a.
n.a.

A52

Domestic Nonfinancial Statistics • December 1987

2.17 PERSONAL INCOME AND SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1986
Account

1984

1985

1987

1986
Q3

Q4

QI

Q2

Q3

PERSONAL INCOME AND SAVING

1 Total personal income

3,108.7

3,327.0

3,534.3

3,553.6

3,593.6

3,662.0

3,708.6

3,759.7

2 Wage and salary disbursements
3 Commodity-producing industries
4
Manufacturing
5 Distributive industries
6
Service industries
7
Government and government enterprises

1,838.6
577.6
439.1
442.8
472.1
346.1

1,974.9
609.2
460.9
473.0
520.4
372.3

2,089.1
623.3
470.5
497.1
573.9
394.8

2,097.9
622.8
470.0
498.6
578.8
397.7

2,128.5
628.4
474.5
504.7
591.6
403.8

2,163.3
632.9
477.2
511.5
606.7
412.2

2,191.4
635.0
479.0
518.9
619.3
418.1

2,227.0
641.5
484.9
526.9
634.4
424.2

182.9
234.5
204.0
30.5
8.5
75.5
444.7
456.6
235.7

192.3
257.3
227.6
29.7
9.0
76.3
476.5
489.7
253.4

201.1
289.8
252.6
37.2
16.7
81.2
497.6
518.3
269.2

202.3
292.5
256.2
36.3
17.2
82.1
498.1
523.6
272.4

204.4
297.8
261.2
36.6
18.4
82.9
496.8
526.6
273.5

206.7
320.9
269.7
51.3
20.0
84.5
499.8
533.7
278.0

209.5
323.1
275.8
47.3
18.9
86.3
506.3
541.5
282.3

211.1
322.1
283.0
39.1
18.5
88.7
517.6
545.4
284.4

8
9
10
11
12
13
14
15
16
17

Other labor income
Proprietors' income
Business and professional 1
Farm 1
Rental income of persons
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits . . .
LESS: Personal contributions for social insurance

18 EQUALS: Personal income

132.7

148.9

159.6

160.1

161.8

166.7

168.4

170.8

3,108.7

3,327.0

3,534.3

3,553.6

3,593.6

3,662.0

3,708.6

3,759.7

440.2

485.9

512.2

515.3

532.0

536.1

578.0

566.2

20 EQUALS: Disposable personal income

2,668.6

2,841.1

3,022.1

3,038.2

3,061.6

3,125.9

3,130.6

3,193.5

21

LESS: Personal outlays

2,504.5

2,714.1

2,891.5

2,929.4

2,952.6

2,987.5

3,037.4

3,098.9

22 EQUALS: Personal saving

164.1

127.1

130.6

108.9

109.0

138.4

93.2

94.6

14,770.6
9,488.6
10,419.0
6.1

15,073.7
9,830.2
10,622.0
4.5

15,368.3
10,141.9
10,947.0
4.3

15,369.9
10,241.8
10,968.0
3.6

15,387.6
10,228.8
10,956.0
3.6

15,523.4
10,188.9
11,008.0
4.4

15,586.4
10,215.6
10,865.0
3.0

15,695.2
10,311.3
10,963.0
3.0

568.5

531.3

532.0

516.2

515.3

554.3

551.3

673.5
164.1
94.0
-5.8

664.2
127.1
99.6
-.7

679.8
130.6
92.6
6.5

660.4
108.9
92.6
6.0

653.4
109.0
78.5
-8.9

683.8
138.4
75.6
-11.3

639.9
93.2
70.1
-20.0

n.a.
94.6
n.a.
-13.5

254.5
160.9

269.1
168.5

282.8
173.8

284.3
174.6

289.3
176.6

291.8
178.0

294.5
182.1

296.9
183.6

-105.0
-169.6
64.6

-132.9
-196.0
63.1

-147.8
-204.7
56.8

-144.1
-203.7
59.6

-138.1
-188.7
50.6

-129.5
-170.5
41.0

-88.6
-139.2
50.6

573.9

525.7

527.1

510.1

503.7

552.1

548.1

534.6

664.8
-90.9

641.6
-115.9

671.0
-143.9

660.8
-150.7

660.2
-156.5

699.9
-147.7

702.6
-154.5

696.5
-162.0

5.4

-5.6

-4.9

-6.1

-11.6

-2.2

-3.1

-3.1

19

LESS: Personal tax and nontax payments

MEMO

Per capita (1982 dollars)
23 Gross national product
24 Personal consumption expenditures
25 Disposable personal income
26 Saving rate (percent)
GROSS SAVING

28
29
30
31

Gross private saving
Personal saving
Undistributed corporate profits 1
Corporate inventory valuation adjustment
Capital consumption

allowances

33 Noncorporate
34

Government surplus, or deficit ( - ) , national income and

35

Federal

38 Gross private domestic
40 Statistical discripancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




SOURCE. Survey of Current Business (Department of Commerce).

n.a.

n.a.
n.a.
n.a.

Summary Statistics
3.10 U.S. INTERNATIONAL TRANSACTIONS

A53

Summary

Millions of dollars; quarterly data are seasonally adjusted except as noted. 1
1986

1987

Item credits or debits
Q2

Q3

Q4

Ql

Q2P

-107,013

-116,394

-141,352

-33,755
-34,634

-36,583
-40,230

-37,977
-36,398

-36,784
-33,435

-41,097
-41,956

-112,522
219,900
-332,422
-1,942
18,490
1,138

-122,148
215,935
-338,083
-3,338
25,398
-1,005

-144,339
224,361
-368,700
-3,662
20,844
1,463

-33,651
56,928
-90,579
-1,054
4,587
530

-37,115
56,534
-93,649
-815
5,339
342

-38,595
57,021
-95,616
-495
4,492
759

-38,757
56,992
-95,749
-37
5,500
-387

-39,525
59,975
-99,500
111
1,608
-387

-3,637
-8,541

-4,079
-11,222

-3,885
-11,772

-918
-3,249

-875
-3,459

-1,151
-2,987

-1,017
-2,086

-913
-1,991

11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )

-5,476

-2,831

-1,920

-242

-1,454

15

225

-182

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

-3,130
0
-979
-995
-1,156

-3,858
0
-897
908
-3,869

312
0
-246
1,500
-942

16
0
-104
366
-246

280
0
163
508
-391

132
0
-31
283

1,956
0
76
606
1,274

3,419
0
-171
335
3,255

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 abroad, net 3

-13,685
-11,127
5,019
-4,756
-2,821

-24,711
-1,323
1,361
-7,481
-17,268

-94,374
-59,039
-3,986
-3,302
-28,047

-25,303
-14,734
-1,894
-1,149
-7,526

-23,304
-18,878
685
620
-5,731

-32,351
-31,800
170
3,113
-3,834

13,352
25,686
-1,163
-1,345
-9,826

-24,747
-20,195

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 liabilities4
26 Other U.S. liabilities reported by U.S. banks
27 Other foreign official assets 5

2,987
4,690
13
586
555
-2,857

-1,140
-838
-301
823
645
-1,469

34,698
34,515
-1,214
1,723
554

15,568
14,538
-644
925
1,280
-531

15,551
12,167
-276
999
2,963
-302

1,003
4,572
-117
-607
-2,435
-410

13,953
12,145
-1,381
3,611
-360

9,389
11,082
256
-1,501
-135
-313

28 Change in foreign private assets in the United States
(increase, +) 3
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

99,481
33,849
4,704
23,001
12,568
25,359

131,012
41,045
-450
20,433
50,962
19,022

178,689
77,350
-2,791
8,275
70,802
25,053

33,475
3,899
-1,553
3,705

54,040
30,360

4,536

609
17,074
6,077

57,428
34,604
1,035
-3,074
12,269
12,594

12,802
-13,614
1,761
-1,570
18,499
7,726

'-2,562'
15,858
7,215

0
26,837

0
17,920

0
23,947

0
10,241
-2,044

0
-8,530
-4,153

0
11,750
3,904

0
-5,504
2,652

0
17,557
-1,987

23,947

12,285

7,846

-8,156

1 Balance on current account
2 Not seasonally adjusted
3
4
5
6
7
8
9
10

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)

34 Allocation of SDRs
35 Discrepancy
36 Owing to seasonal adjustments
37 Statistical discrepancy in recorded data before seasonal
adjustment

26,837

22,888

-80

-120

-62

93
-4,645

35,661
15,150

MEMO

Changes in official assets
U.S. official reserve assets (increase, —)
Foreign official assets in the United States (increase, +)
excluding line 25
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

-3,130

-3,858

312

16

280

132

1,956

3,419

2,401

-1,963

32,975

14,643

14,552

1,610

15,334

10,890

-4,504

-6,709

-8,508

-2,166

-3,023

-5,195

-2,626

153

46

101

11

19

53

26

1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and
38-41.
2. Data are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing. Military
exports are excluded from merchandise data and are included in line 6.
3. Includes reinvested earnings.




4. Primarily associated with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
NOTE. Data are from Bureau of Economic Analysis, Survey of Current Business
(Department of Commerce).

A54

International Statistics • December 1987

3.11 U.S. FOREIGN TRADE 1
Millions of dollars; monthly data are not seasonally adjusted.
1987
Item

1984

1985

1986
Feb.

1

EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments, f.a.s. value

2 GENERAL IMPORTS including
merchandise for immediate
consumption plus entries into
bonded warehouses, c.i.f. value . . . .

223,976

218,815

226,808

Mar.

Apr.

May

June

July

Aug.

19,360

21,776

20,496

20,784

21,126

21,008

20,222

346,364

352,463

382,964

33,725

34,694

33,459

34,822

36,838

37,483

35,905

-122,389

3 Trade balance

-133,648

-156,156

-14,365

-12,918

-12,963

-14,039

-15,711

-16,475

-15,683

1. The Census basis data differ from merchandise trade data shown in table
3.10, U.S. International Transactions Summary, for reasons of coverage and
timing. On the export side, the largest adjustment is the exclusion of military sales
(which are combined with other military transactions and reported separately in
the "service account" in table 3.10, line 6). On the import side, additions are made
for gold, ship purchases, imports of electricity from Canada, and other transac-

tions; military payments are excluded and shown separately as indicated above.
As of Jan. 1, 1987 census data are released 45 days after the end of the month.
Total exports and the trade balance reflect adjustments for undocumented exports
to Canada.
SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade"
(Department of Commerce, Bureau of the Census).

3.12 U.S. RESERVE ASSETS
Millions of dollars, end of period
1987
Type

1984

1985

1986
Mar.

1

May

June

July

Aug.

Sept."

34,934

Total

2 Gold stock, including Exchange Stabilization Fund 1
3 Special drawing rights2,3
4

Reserve position in International Monetary Fund

5

Foreign currencies 4

43,186

48,517

48,824

46,591

45,913

45,140

44,318

45,944

45,070

11,096

11,090

11,064

11,081

11,076

11,070

11,069

11,069

11,068

11,075

5,641

7,293

8,395

8,740

8,879

8,904

8,856

8,813

9,174

9,078

11,541

11,947

11,730

11,711

11,745

11,517

11,313

10,964

11,116

10,918

6,656

12,856

17,328

17,292

14,891

14,422

13,902

13,472

14,586

13,999

1. Gold held under earmark at Federal Reserve Banks for foreign and international accounts is not included in the gold stock of the United States; see table
3.13. Gold stock is valued at $42.22 per fine troy ounce.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of member countries.
From July 1974 through December 1980, 16 currencies were used; from January
1981, 5 currencies have been used. The U.S. SDR holdings and reserve position
in the IMF also are valued on this basis beginning July 1974.

3.13

Apr.

3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus transactions in SDRs.
4. Valued at current market exchange rates.

FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1987
Assets

1984

1985

1986
Mar.

1 Deposits
Assets held in custody
2 U.S. Treasury securities
3 Earmarked gold

May

June

July

Aug.

Sept."

267

480

287

268

342

319

318

261

294

456

118,000
14,242

121,004
14,245

155,835
14,048

167,423
14,036

172,929
14,031

175,849
14,031

176,657
14,034

171,269
14,010

179,484
14,022

179,097
14,015

1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies.
2. Earmarked gold is valued at $42.22 per fine troy ounce.




Apr.

NOTE. Excludes deposits and U.S. Treasury securities held for international
and regional organizations. Earmarked gold is gold held for foreign and international accounts and is not included in the gold stock of the United States.

Summary Statistics
3.14

FOREIGN BRANCHES OF U.S. BANKS

A55

Balance Sheet Data1

Millions of dollars, end of period
1987
Asset account

1984

1985

1986
Feb.

Mar.

Apr.

May

June

July

Aug. p

All foreign countries
1 Total, all currencies
? Claims on United States
3 Parent bank
4 Other banks in United States
5 Nonbanks
6 Claims on foreigners
7 Other branches of parent bank
8 Banks
9
Public borrowers
10 Nonbank foreigners

453,656
113,393
78,109
13,664
21,620
320,162
95,184
100,397
23,343
101,238

458,012
119,706
87,201
13,057
19,448
315,676
91,399
102,960
23,478
97,839

457,819

456,628
r

114,563
83,492
13,685
17,386r
312,955'
96,281
105,237
23,706'
87,731

457,002r

485,165'

487,435'

475,038'

470,234

473,403

114,334''
82,588
13,158
18,588'
310,803'
89,656
109,748
22,534'
88,865

112,094
81,677
13,044
17,373
310,819
89,200
109,580
22,666
89,373

128,633'
94,444'
15,277
18,912'
321,134'
93,669
114,869'
22,892'"
89,704

126,915'
92,217'
16,990
17,708
328,087
101,309
113,971
23,295
89,512

123,312'
89,395
15,933'
17,984
319,865'
101,232
107,480'
22,684
88,469'

123,589
89,816
14,192
19,581
314,020
96,582
110,069
21,412
85,957

124,666
89,981
14,589
20,096
314,704
97,988
108,048
21,537
87,131

20,101

22,630

29,110

32,682

34,089'

35,398

32,433

31,861

32,625

34,033

12 Total payable in U.S. dollars

350,636

336,520

317,487

311,669

306,119^

329,279^

336,252'

329,347'

322,143

322,064

13 Claims on United States
14 Parent bank
15 Other banks in United States
16 Nonbanks
17 Claims on foreigners
18 Other branches of parent bank
19 Banks
70 Public borrowers
21 Nonbank foreigners

111,426
77,229
13,500
20,697
228,600
78,746
76,940
17,626
55,288

116,638
85,971
12,454
18,213
210,129
72,727
71,868
17,260
48,274

110,620'
82,082
12,830
15,708r
195,063r
72,197
66,421
16,708'
39,737

109,895r
81,029
12,102
16,764r
189,321'
64,550
68,320
16,436r
40,015

107,245
79,817
11,907
15,521
185,541
63,983
65,997
16,347
39,214

122,843'
92,490'
13,468
16,885r
192,150r
66,916
69,116'
16,639'
39,479

121,458
90,182
15,354
15,922
201,258'
75,014
69,395
16,812
40,037'

118,323'
87,559
14,621'
16,143
198,402'
75,771
67,227'
16,271
39,133'

118,465
87,802
12,683
17,980
190.532
72,515
65.618
15.062
37.337

118,871
87,867
12,700
18,304
189,728
73,327
64,066
15,115
37,220

10,610

9,753

11,804

12,453

13,333r

14,286'

13,536'

12,622

13,146

13,465

11 Other assets

22 Other assets

United Kingdom
23 Total, all currencies

144,385

148,599

140,917

146,188

145,486

149,998

154,371

146,678

149,760

148,039

74 Claims on United States
?5
Parent bank
7.6 Other banks in United States
71 Nonbanks
78 Claims on foreigners
79 Other branches of parent bank
30 Banks
31
Public borrowers
32 Nonbank foreigners

27,675
21,862
1,429
4,384
111,828
37,953
37,443
5,334
31,098

33,157
26,970
1,106
5,081
110,217
31,576
39,250
5,644
33,747

24,599
19,085
1,612
3,902
109,508
33,422
39,468
4,990
31,628

28,851
23,326
1,258
4,267
110,274
29,575
43,189
4,983
32,527

28,503
23,303
1,288
3,912
109,297
28,782
42,537
4,897
33,081

31,001
25,315
1,564
4,122
111,113
29,936
42,961
4,964
33,252

34,427
28,935
1,507
3,985
112,997
33,412
41,241
5,234
33,110

30,859
25,944
1,194
3,721
107,789
32,641
37,538'
4,684
32,926'

32,694
27,288
1,537
3,869
108,732
31,241
41,219
4,617
31,655

31,377
25,627
1,585
4,165
108,293
30,794
40,082
4.761
32,656

33 Other assets
34 Total payable in U.S. dollars
35 Claims on United States
36 Parent bank
37 Other banks in United States
38 Nonbanks
39 Claims on foreigners
40 Other branches of parent bank
41
Banks
47
Public borrowers
Nonbank foreigners
43
44 Other assets

4,882

5,225

6,810

7,063

7,686

7,884

6,947

8,030

8,334

8,369

112,809

108,626

95,028

97,568

95,007

99,398

104,622

97,672

99,170

96,510

26,868
21,495
1,363
4,010
82,945
33,607
26,805
4,030
18,503

32,092
26,568
1,005
4,519
73,475
26,011
26,139
3,999
17,326

23,193
18,526
1,475
3,192
68,138
26,361
23,251
3,677
14,849

27,290
22,749
1,061
3,480
66,872
22,578
25,685
3,716
14,893

26,665
22,662
980
3,023
64,466
21,785
24,225
3,660
14,796

29,066
24,689
1,192
3,185
66,257
22,339
24,962
3,712
15,244

32,542
28,228
1,157
3,157
68,469
25,921
23,263
3,785
15,500

29,252
25,286
950
3,016
64,676
25,409
21,355'
3,470
14,442''

31,076
26,661
1,294
3,121
64,024
23,827
22,975
3,400
13,822

29,519
24,853
1,309
3,357
63,265
23,155
22,646
3,473
13,991

2,996

3,059

3,697

3,406

3,876

4,075

3,611

3,744

4,070

3,726

Bahamas and Caymans
45 Total, all currencies
46 Claims on United States
47
Parent bank
48 Other banks in United States
49
Nonbanks
50 Claims on foreigners
51 Other branches of parent bank
5?
Banks
53 Public borrowers
54 Nonbank foreigners
55 Other assets
56 Total payable in U.S. dollars

146,811

142,055

142,592

133,229

134,189

146,776

141,668

142,018'

140,355

139,849

77,296
49,449
11,544
16,303
65,598
17,661
30,246
6,089
11,602

74,864
50,553
11,204
13,107
63,882
19,042
28,192
6,458
10,190

78,048'
54,575
11,156
12,317'
60,005'
17,296
27,476
7,051r
8,182

68,757'
44,759
10,924
13,074'
59,152r
15,481
28,139
7,090r
8,442

67,586''
44,502
10,855
12,229r
60,766r
16,529
28,568
7,038r
8,631

78,813'
52,778r
12,649
13,386'
62,205'
16,562
30,225'
7,247'
8,171

73,351
46,486
14,494
12,371
63,021
15,775
31,352
7,304
8,590

72,453'
45,910
13,636'
12,907
65,217'
18,873
30,927'
7,025
8,392

72,674
46,279
11,713
14,682
62,969
17,493
30,317
7,046
8,113

72,465
45,720
11,981
14,764
62,293
18,228
29,120
6,873
8,072

3,917

3,309

4,539

5,320

5,837

5,758

141,562

136,794

136,813

126,605

127,160

138,784

1. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches




5,296
133,320'

4,348

4,712

5,091

135,171'

131,479

130,848

from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.

A56
3.14

International Statistics • December 1987
Continued
1987
Feb.

Mar.

Apr.

May

June

July

Aug p .

All foreign countries
57 Total, all currencies

453,656

458,012

456,628

457,819

457,002r

485,165r

487,435r

475,038'

470,234

473,403

58 Negotiable CDs
59 To United States
60
Parent bank
61
Other banks in United States
62
Nonbanks

37,725
147,583
78,739
18,409
50,435

34,607
155,538
83,914
16,894
54,730

31,629
151,632
82,561
15,646
53,425

36,074
140,341
73,095
13,602
53,644

34,873
141,713''
71,112'"
13,695
56,906

33,155
152,697'
75,079''
16,913
60,705

34,360
149,807'
74,550r
16,898
58,359''

31,776
149,948'
78,343r
16,560
55,045''

32,993
143,265
71,506
14,982
56,777

33,648
140,918
73,616
15,305
51,997

63 To foreigners
64
Other branches of parent bank
65
Banks
66
Official institutions
67
Nonbank foreigners
68 Other liabilities

247,907
93,909
78,203
20,281
55,514
20,441

245,939
89,529
76,814
19,520
60,076
21,928

253,775
95,146
77,809
17,835
62,985
19,592

261,649
88,524
86,037
19,818
67,270
19,755

260,635'
88,276''
84,543r
20,591
67,225
19,781'

278,022
94,590
92,704
21,293
69,435
21,291

284,307r
101,774'
90,333'
23,058
69,142'
18,961

274,076'
100,826'
81,542''
21,966'
69,742'
19,238'

274,419
95,376
87,734
21,528
69,781
19,557

278,900
97,908
87,449
21,016
72,527
19,937

69 Total payable in U.S. dollars

367,145

353,712

336,406

326,319

321,705'

340,406'

347,148'

340,833'

334,061

333,536

70 Negotiable CDs
71 To United States
72
Parent bank
73
Other banks in United States
74
Nonbanks

35,227
143,571
76,254
17,935
49,382

31,063
150,162
80,888
16,264
53,010

28,466
143,650
78,472
14,609
50,569

32,407
131,912
68,540
12,505
50,867

31,148
132,765
65,981
12,593
54,191

29,505
141,463'
68,401r
15,455
57,607

30,763
140,988'
70,065'
15,732
55,191r

27,929
141,500'
74,200''
15,348
51,952'

28,781
134,562
66,837
13,872
53,853

29,634
131,912
68,836
14,102
48,974

75 To foreigners
76
Other branches of parent bank
77
Banks
78
Official institutions
79
Nonbank foreigners
80 Other liabilities

178,260
77,770
45,123
15,773
39,594
10,087

163,583
71,078
37,365
14,359
40,781
8,904

156,806
71,181
33,850
12,371
39,404
7,484

154,416
63,640
36,816
13,189
40,771
7,584

149,949
62,172
35,116
13,392
39,269
7,843'"

161,216
67,278
39,111
14,318
40,509
8,222

167,761r
74,769
36,226
16,068
40,698'
7,636

163,520'
74,202'
32,125''
15,687
41,506'
7,884

162,778
70,911
35,250
15,806
40,811
7,940

163,740
72,620
35,104
15,527
40,489
8,250

154,371

United Kingdom
144,385

148,599

140,917

146,188

145,486

149,998

146,678

149,760

148,039

82 Negotiable CDs
83 To United States
84
Parent bank
85
Other banks in United States
86
Nonabnks

81 Total all currencies

34,413
25,250
14,651
3,125
7,474

31,260
29,422
19,330
2,974
7,118

27,781
24,657
14,469
2,649
7,539

32,233
22,501
12,735
2,154
7,612

30,968
21,457'
12,356'
1,816
7,285

29,311
23,936
13,170
2,205
8,561

30,226
26,204''
15,145
2,273
8,786'

27,511
24,512
14,745
2,109
7,658

28,590
24,347
14,010
2,021
8,316

29,363
22,197
13,234
1,875
7,088

87 To foreigners
88
Other branches of parent bank
89
Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities

77,424
21,631
30,436
10,154
15,203
7,298

78,525
23,389
28,581
9,676
16,879
9,392

79,498
25,036
30,877
6,836
16,749
8,981

82,418
21,230
35,434
7,832
17,922
9,036

83,699'
21,780'
35,538'
7,827
18,554
9,362

87,381
22,421
37,562
8,871
18,527
9,370

89,760'
26,367
35,282
10,004
18,107r
8,181

86,041
25,350
32,334
9,450
18,907
8,614

87,942
23,572
35,647
9,241
19,482
8,881

87,750
23,379
34,414
9,670
20,287
8,729

117,497

112,697

99,707

101,971

98,967

101,793

106,093

100,031

101,593

99,459

94 Negotiable CDs
95 To United States
96
Parent bank
97
Other banks in United States
98
Nonbanks

33,070
24,105
14,339
2,980
6,786

29,337
27,756
18,956
2,826
5,974

26,169
22,075
14,021
2,325
5,729

30,175
19,894
12,157
1,926
5,811

28,868
18,940
11,606
1,602
5,732

27,189
21,144
12,352
2,021
6,771

28,345
23,474r
14,528
2,027
6,919'

25,695
21,850
14,252
1,899
5,699

26,397
21,689
13,399
1,776
6,514

27,264
19,573
12,608
1,694
5,271

99 To foreigners
1(H) Other branches of parent bank
101
Banks
102
Official institutions
Nonbank foreigners
103
104 Other liabilities

56,923
18,294
18,356
8,871
11,402
3,399

51,980
18,493
14,344
7,661
11,482
3,624

48,138
17,951
15,203
4,934
10,050
3,325

48,610
14,691
18,207
5,176
10,536
3,292

47,531
14,471
18,027
4,924
10,109
3,628

49,708
14,367
19,498
5,786
10,057
3,752

51,116'
18,430
15,555
7,214
9,917'
3,158

49,089
17,654
13,864
6,985
10,586
3,397

50,294
16,171
16,330
7,203
10,590
3,213

49,484
15,565
15,767
7,872
10,280
3,138

93 Total payable in U.S. dollars

Bahamas and Caymans
105 Total, all currencies

146,811

142,055

142,592

133,229

134,189

146,776

141,668

142,018'

140,355

139,849

106 Negotiable CDs
107 To United States
108
Parent bank
109
Other banks in United States
110
Nonbanks

615
102,955
47,162
13,938
41,855

610
103,813
44,811
12,778
46,224

847
105,248
48,648
11,715
44,885

855
95,516
40,409
10,151
44,956

813
98,912
39,851
10,568
48,493

883
107,367
43,315
13,345
50,707

1,092
101,532
40,052
13,175
48,305

1,067
102,855'
43,479'
13,143
46,233''

1,119
99,071
39,805
11,966
47,300

975
97,095
40,985
12,292
43,818

40,320
16,782
12,405
2,054
9,079
2,921

35,053
14,075
10,669
1,776
8,533
2,579

34,400
12,631
8,617
2,719
10,433
2,097

34,758
12,972
8,070
3,013
10,703
2,100

32,501
11,673
8,140
2,836
9,852
1,963

36,491
13,891
9,452
2,937
10,211
2,035

36,835
13,359
9,895
3,072
10,509
2,209

36,004'
14,023
7,943'
3,185
10,853'
2,092

38,000
14,803
9,395
3,263
10,539
2,165

39,449
16,465
9,514
2,935
10,535
2,330

143,582

138,322

138,774

129,183

129,400

140,796

136,679

137,611'

135,219

134,217

111 To foreigners
112
Other branches of parent bank
113
Banks
114
Official institutions
115
Nonbank foreigners
116 Other liabilities
117 Total payable in U.S. dollars




Summary Statistics
3.15

A57

SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1987'
Item

1985

1986'
Feb.

1 Total1
2
3
4
5
6
7
8
9
10
11
12

Mar.

Apr.

May

June

July

Aug."

178,380

By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries6

211,782

215,468

226,840

236,137

236,439

238,418

232,048

237,482

26,734
53,252

27,868
75,650

29,582
75,434

31,207
79,629

33,034
84,640

31,896
81,553

31,754
80,663

31,246
73,435

29,446
78,210

77,154
3,550
17,690

91,368
1,300
15,596

93,678
1,300
15,474

99,530
1,300
15,174

102,019
1,300
15,144

106,465
1,300
15,225

110,184
700
15,117

112,435
500
14,432

115,047
300
14,479

74,447
1,315
11,148
86,448
1,824
3,199

By type
Liabilities reported by banks in the United States'4
U.S. Treasury bills and certificates 3
U.S. Treasury bonds and notes
Marketable
Nonmarketable
U.S. securities other than U.S. Treasury securities

88,623
2,004
8,372
105,868
1,503
5,412

91,141
3,761
7,424
108,722
1,164
3,255

99,822
5,110
8,246
108,450
1,192
4,020

106,171
3,922
9,295
109,842
1,284
5,621

108,677
3,482
7,923
109,464
1,628
5,265

111,405
3,502
7,519
108,654
1,405
5,933

107,548
3,559
7,920
105,495
1,590
5,937

106,736
4,189
8,710
109,463
1,837
6,547

1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable in foreign currencies through 1974) and Treasury bills issued to official
institutions of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes
bonds and notes payable in foreign currencies.

5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
NOTE. Based on Treasury Department data and on data reported to the
Treasury Department by banks (including Federal Reserve Banks) and securities
dealers in the United States.

3.16 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies1
Millions of dollars, end of period
1986'
Item

1983

1984

1987'

1985
Sept.

1 Banks' own liabilities
2 Banks' own claims
5 Claims of banks' domestic customers 1

5,219
7,231
2,731
4,501
1,059

1. Data on claims exclude foreign currencies held by U.S. monetary authorities.
2. Assets owned by customers of the reporting bank located in the United




8,586
11,984
4,998
6,986
569

15,368
16,294
8,437
7,857
580

Dec.

Mar.

June

29,528
24,134
13,241
10,893
1,589

29,556
25,920
13,923
11,997
2,507

36,905
32,613
14,077
18,536
2,012

35,962
32,789
10,839
21,951
889

States that represent claims on foreigners held by reporting banks for the accounts
of the domestic customers.

A58
3.17

International Statistics • December 1987
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars

Reported by Banks in the United States

Millions of dollars, end of period
1987r
Holder and type of liability

1984

1985

1986r
Feb.

Mar.

Apr.

May

June

July

Aug."

1 All foreigners

407,306

435,726

539,238

523,839

531,086

553,980

557,735

541,039

537,027

547,936

2 Banks' own liabilities
3 Demand deposits
deposits
4 Time 2
5 Other
6 Own foreign offices 3

306,898
19,571
110,413
26,268
150,646

341,070
21,107
117,278
29,305
173,381

406,075
23,788
131,691
41,462
209,134

389,380
22,449
125,115
42,104
199,711

395,976
22,282
125,109
44,424
204,162

413,735
22,350
131,794
47,986
211,605

417,889
23,223
132,973
47,718
213,975

401,903
23,219
133,186
41,512
203,986

403,725
20,600
134,620
43,197
205,308

410,414
22,139
137,878
40,198
210,199

100,408
76,368

94,656
69,133

133,163
90,392

134,459
90,800

135,110
93,153

140,245
97,928

139,846
95,959

139,135
93,688

133,302
88,193

137,523
92,705

18,747
5,293

17,964
7,558

15,417
27,354

13,744
29,916

14,695
27,262

14,590
27,727

15,790
28,098

16,371
29,076

15,632
29,477

15,259
29,559

11 Nonmonetary international and regional
organizations7

4,454

5,821

5,272

5,274

5,281

8,230

5,199

3,979

5,662

4,892

12 Banks' own liabilities
13 Demand deposits
14 Time deposits
15 Other

2,014
254
1,267
493

2,621
85
2,067
469

3,423
199
2,066
1,158

2,948
157
1,488
1,303

3,901
246
1,227
2,428

6,636
334
3,094
3,207

3,535
106
944
2,486

2,489
72
967
1,451

2,083
78
584
1,420

2,058
46
806
1,206

16 Banks' custody liabilities4
17 U.S. Treasury bills and certificates
18 Other negotiable and readily transferable
instruments
19 Other

2,440
916

3,200
1,736

1,849
259

2,326
1,213

1,379
154

1,594
428

1,664
440

1,490
266

3,579
2,339

2,834
1,635

1,524
0

1,464
0

1,590
0

1,112
1

1,225
0

1,152
14

1,224
0

1,224
0

1,240
0

1,193
6

20 Official institutions8

86,065

79,985

103,518

105,016

110,836

117,675

113,449

112,416

104,682

107,655

21 Banks' own liabilities
22 Demand deposits
deposits
23 Time 2
24 Other

19,039
1,823
9,374
7,842

20,835
2,077
10,949
7,809

25,376
2,267
11,009
12,100

27,010
1,513
11,012
14,485

28,060
1,923
10,806
15,331

30,060
1,829
12,277
15,954

29,034
2,089
11,277
15,668

28,364
1,745
13,042
13,577

28,076
1,713
13,480
12,884

26,150
1,907
13,778
10,466

25 Banks' custody liabilities4
26 U.S. Treasury bills and certificates
27 Other negotiable and readily transferable
instruments
28 Other

67,026
59,976

59,150
53,252

78,142
75,650

78,005
75,434

82,776
79,629

87,614
84,640

84,415
81,553

84,052
80,663

76,605
73,435

81,505
78,210

6,966
84

5,824
75

2,347
145

2,431
140

3,015
132

2,819
154

2,715
147

3,141
248

2,950
220

3,151
144

7 Banks' custody liabilities4
8 U.S. Treasury bills and certificates
9 Other negotiable and readily transferable
instruments 6
10 Other

29 Banks

9

30 Banks' own liabilities
31
Unaffiliated foreign banks
Demand deposits
32
Time 2
deposits
33
Other
34
35 Own foreign offices 3
36 Banks' custody liabilities4
37 U.S. Treasury bills and certificates
38 Other negotiable and readily transferable
instruments 6
39 Other

248,893

275,589

350,637

335,630

338,946

350,635

359,093

346,818

349,572

355,917

225,368
74,722
10,556
47,095
17,071
150,646

252,723
79,341
10,271
49,510
19,561
173,381

310,400
101,266
10,303
64,516
26,447
209,134

293,475
93,764
10,103
59,758
23,903
199,711

299,990
95,828
9,503
62,138
24,187
204,162

311,654
100,049
9,782
64,296
25,970
211,605

319,495
105,520
10,808
67,725
26,986
213,975

305,679
101,693
10,298
67,097
24,299
203,986

307,738
102,429
8,589
67,218
26,623
205,308

314,756
104,557
9,911
68,975
25,671
210,199

23,525
11,448

22,866
9,832

40,237
9,984

42,155
10,501

38,956
9,759

38,981
9,545

39,598
9,774

41,139
9,066

41,834
9,142

41,161
9,100

7,236
4,841

6,040
6,994

5,165
25,089

4,107
27,547

4,171
25,026

4,090
25,346

4,213
25,611

5,611
26,462

5,850
26,841

5,320
26,742

40 Other foreigners

67,894

74,331

79,810

77,920

76,023

77,441

79,994

77,825

77,112

79,472

41 Banks' own liabilities
42 Demand deposits
deposits
43 Time 2
44 Other

60,477
6,938
52,678
861

64,892
8,673
54,752
1,467

66,876
11,019
54,099
1,757

65,947
10,676
52,858
2,413

64,025
10,609
50,938
2,479

65,385
10,404
52,126
2,854

65,825
10,220
53,027
2,578

65,371
11,104
52,081
2,185

65,828
10,220
53,338
2,270

67,450
10,275
54,320
2,855

7,417
4,029

9,439
4,314

12,935
4,500

11,973
3,652

11,998
3,610

12,056
3,315

14,169
4,192

12,454
3,694

11,284
3,276

12,022
3,761

3,021
367

4,636
489

6,315
2,120

6,093
2,227

6,285
2,103

6,529
2,212

7,638
2,340

6,395
2,366

5,592
2,415

5,594
2,667

10,476

9,845

7,496

7,860

7,854

8,134

8,694

7,356

6,313

6,458

45 Banks' custody liabilities4
U.S. Treasury bills and certificates
46
Other negotiable and readily transferable
47
instruments 6
48 Other
49 MEMO: Negotiable time certificates of deposit in
custody for foreigners

1. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
2. Includes borrowing under repurchase agreements.
3. U.S. banks: includes amounts due to own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due to head office or parent foreign bank, and
foreign branches, agencies or wholly owned subsidiaries of head office or parent
foreign bank.
4. Financial claims on residents of the United States, other than long-term




securities, held by or through reporting banks.
5. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks.
8. Foreign central banks and foreign central governments, and the Bank for
International Settlements.
9. Excludes central banks, which are included in "Official institutions."

Nonbank-Reported

Data

3.17 Continued
1987'
Area and country

1984

1985

1986r
Feb.

Mar.

Apr.

May

June

July

Aug."

1 Total

407,306

435,726

539,238

523,839

531,086

553,980

557,735

541,039

537,027

547,936

2 Foreign countries

402,852

429,905

533,965

518,565

525,806

545,750

552,536

537,059

531,365

543,044

153,145
615
4,114
438
418
12,701
3,358
699
10,762
4,731
1,548
597
2,082
1,676
31,740
584
68,671
602
7,192
79
537

164,114
693
5,243
513
496
15,541
4,835
666
9,667
4,212
948
652
2,114
1,422
29,020
429
76,728
673
9,635
105
523

180,491
1,181
6,729
482
580
22,862
5,752
700
10,875
5,600
735
699
2,407
884
30,533
454
85,284
630
3,322
80
702

181,201
929
7,594
520
762
22,677
6,061
750
8,489
5,355
554
710
2,343
1,063
27,574
359
90,022
565
4,319
23
532

186,086
799
7,232
623
947
23,853
7,477
642
10,094
4,970
490
686
2,237
1,065
27,545
412
91,903
564
3,902
30
616

192,008
1,058
7,906
425
942
27,457
6,779
603
11,338
5,880
567
660
2,244
1,251
26,533
833
91,742
526
4,572
32
659

207,149
921
9,335
459
909
27,870
10,619
643
11,726
5,442
571
607
2,194
1,496
26,869
378
102,261
429
3,849
37
532

204,713
974
9,558
425
616
27,955
8,024
691
11,943
5,367
502
704
2,322
1,296
27,852
455
99,682
433
5,208
36
671

198,901
795
9,140
486
467
25,478
7,090
667
10,020
5,101
582
586
2,105
1,235
24,807
365
102,098
459
6,222
550
647

203,196
1,151
9,645
572
544
26,969
7,666
636
7,667
5,425
593
686
2,252
1,411
28,347
514
102,079
491
5,873
45
628

3 Europe
4
Austria
5 Belgium-Luxembourg
6 Denmark
7
Finland
8
France
Germany
9
10 Greece
Italy
11
12
Netherlands
13
Norway
14
Portugal
15
Spain
16
Sweden
17
Switzerland
18
Turkey
19
United Kingdom
20
Yugoslavia
Other Western Europe 1
21
22
U.S.S.R
Other Eastern Europe 2
23

16,059

17,427

26,345

25,231

26,595

25,306

24,522

21,914

21,222

22,556

153,381
4,394
56,897
2,370
5,275
36,773
2,001
2,514
10
1,092
896
183
12,303
4,220
6,951
1,266
1,394
10,545
4,297

167,856
6,032
57,657
2,765
5,373
42,674
2,049
3,104
11
1,239
1,071
122
14,060
4,875
7,514
1,167
1,552
11,922
4,668

209,184
4,757
73,619
2,922
4,325
70,919
2,054
4,285
7
1,236
1,123
136
13,745
4,916
6,886
1,163
1,537
10,439
5,114

191,934
4,672
63,330
2,507
3,800
65,326
2,048
4,272
7
1,121
1,082
145
13,473
5,656
6,504
1,131
1,592
10,367
4,902

196,521
4,730
62,978
2,294
3,702
70,438
2,061
4,275
6
1,015
1,083
230
13,256
5,650
6,695
1,063
1,642
10,368
5,035

207,228
4,412
72,102
2,181
3,619
69,426
2,255
4,353
6
1,045
1,165
149
15,104
5,797
7,111
1,086
1,533
10,592
5,289

204,694
4,786
69,428
2,594
3,960
70,354
2,034
4,289
6
1,093
1,167
189
13,955
5,171
7,341
1,095
1,507
10,292
5,432

195,058
4,795
66,325
2,172
3,673
65,297
1,972
4,363
8
1,121
1,123
158
13,857
5,183
7,131
1,137
1,504
10,164
5,078

199,450
5,123
62,416
2,400
3,781
72,183
2,035
4,431
8
1,090
1,110
146
14,578
5,291
6,988
1,145
1,536
10,085
5,105

200,289
5,246
62,313
2,285
3,972
71,617
2,560
4,449
7
1,101
1,086
171
14,547
5,338
7,323
1,200
1,607
10,285
5,181

71,187

72,280

108,806

113,462

109,138

112,296

107,774

106,737

102,722

106,878

1,153
4,990
6,581
507
1,033
1,268
21,640
1,730
1,383
1,257
16,804
12,841

1,607
7,786
8,067
712
1,466
1,601
23,077
1,665
1,140
1,358
14,523
9,276

1,476
18,902
9,390
674
1,547
1,892
47,410
1,141
1,866
1,119
12,352
11,036

1,650
21,127
9,352
686
1,591
1,895
50,899
1,017
1,779
1,238
12,110
10,117

1,947
20,107
9,184
512
1,415
1,670
49,166
1,119
1,740
1,248
11,572
9,459

1,889
19,461
9,367
527
1,460
1,305
53,381
1,178
1,427
1,118
11,363
9,821

1,842
17,333
9,365
569
1,243
1,084
50,434
1,343
1,312
1,180
10,860
11,209

1,737
16,346
9,122
714
1,774
1,229
49,494
1,397
1,222
1,144
11,448
11,111

1,744
16,436
8,595
572
1,404
928
46,508
1,410
1,148
1,094
11,667
11,216

2,023
15,377
8,994
902
1,498
1,036
49,945
1,388
1,208
1,186
12,596
10,724

57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
Oil-exporting countries 4
62
Other Africa
63

3,396
647
118
328
153
1,189
961

4,883
1,363
163
388
163
1,494
1,312

4,021
706
92
270
74
1,519
1,360

3,500
791
77
201
42
1,156
1,233

3,486
775
99
184
40
1,106
1,281

3,732
871
101
288
39
1,212
1,221

4,003
1,052
86
198
74
1,267
1,326

3,759
1,011
106
188
58
1,111
1,286

4,018
1,113
75
229
64
1,275
1,262

4,197
1,162
74
227
69
1,331
1,335

64 Other countries
65
Australia
All other
66

5,684
5,300
384

3,347
2,779
568

5,118
4,196
922

3,237
2,470
767

3,980
3,023
957

5,181
4,293
888

4,394
3,589
805

4,878
4,113
765

5,052
4,333
719

5,928
4,998
929

67 Nonmonetary international and regional organizations
International
Latin American regional
Other regional

4,454
3,747
587
120

5,821
4,806
894
121

5,272
4,086
1,033
154

5,274
4,360
762
152

5,281
4,294
783
204

8,230
6,966
845
420

5,199
3,717
994
488

3,979
2,577
1,047
356

5,662
4,203
1,075
384

4,892
3,379
1,070
443

24 Canada
25 Latin America and Caribbean
Argentina
26
27
Bahamas
Bermuda
28
29
Brazil
30
British West Indies
Chile
31
Colombia
32
33
Cuba
Ecuador
34
Guatemala
35
36
Jamaica
37
Mexico
38
Netherlands Antilles
39 Panama
Peru
40
41
Uruguay
Venezuela
42
Other Latin America and Caribbean
43
44
45
46
47
48
49
50
51
5?
53
54
55
56

China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle-East oil-exporting countries 3
Other Asia

68
69
70

1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and




United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."

A59

A60

International Statistics • December 1987

3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1987
Area and country

1984

1985

1986r
Feb/

Mar/

Apr.

May

June'

July

Aug."

1 Total

400,162

401,608

444,265

417,126

417,290

439,509'

438,135'

432,208

422,971

426,557

2 Foreign countries

399,363

400,577

441,244

416,724

415,349

434,240'

437,304'

430,076

421,445

424,984

99,014
433
4,794
648
898
9,157
1,306
817
9,119
1,356
675
1,243
2,884
2,230
2,123
1,130
56,185
1,886
596
142
1,389

106,413
598
5,772
706
823
9,124
1,267
991
8,848
1,258
706
1,058
1,908
2,219
3,171
1,200
62,566
1,964
998
130
1,107

107,446
728
7,498
688
947
11,356
1,820
648
9,038
3,299
654
739
1,492
1,945
3,049
1,543
58,337
1,836
540
345
944

102,189
545
8,903
593
1,040
9,938
1,734
634
7,332
2,045
766
685
1,673
2,419
2,413
1,438
56,444
1,769
455
401
963

99,409
656
8,081
623
993
9,864
1,648
535
6,987
2,326
667
742
1,807
2,461
2,338
1,579
54,105
1,840
759
367
1,029

108,052'
746'
8,542'
546'
1,116'
10,817'
1,379'
460
7,536
3,030'
683
615
1,977
2,414'
2,905
1,559
59,876'
1,763
648'
375
1,065'

116,501'
669'
9,920'
541'
1,036'
12,075'
1,508
457
8,329'
2,946'
776
641
2,107
2,614'
3,593
1,623
64,001
1,803
493'
357
1,012

114,132
758
9,792
716
1,035
12,036
1,548
456
8,404
5,744
774
659
1,848
2,330
2,611
1,785
59,748
1,755
559
582
993

108,227
698
10,218
614
1,037
11,668
2,008
433
6,770
4,434
830
645
1,822
2,287
2,459
1,761
56,739
1,762
647
420
975

104,894
936
9,526
878
1,031
12,530
1,324
375
6,413
3,067
803
667
1,938
2,473
2,666
1,794
54,687
1,740
548
521
975

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
Spain
15
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
21 Other Western Europe 1
U.S.S.R
22
23 Other Eastern Europe
24 Canada

16,109

16,482

20,958

19,124

19,807

20,177'

19,294'

18,450

18,584

18,440

207,862
11,050
58,009
592
26,315
38,205
6,839
3,499
0
2,420
158
252
34,885
1,350
7,707
2,384
1,088
11,017
2,091

202,674
11,462
58,258
499
25,283
38,881
6,603
3,249
0
2,390
194
224
31,799
1,340
6,645
1,947
960
10,871
2,067

208,832
12,104
59,342
418
25,703
46,306
6,562
2,826
0
2,449
140
198
30,660
1,039
5,436
1,661
940
11,112
1,938

196,260
12,226
52,805
376
25,832
41,074
6,611
2,750
1
2,419
145
199
30,016
917
5,206
1,633
932
11,207
1,910

199,245
12,181
53,474
532
26,059
43,226
6,425
2,698
6
2,338
135
192
29,846
965
5,460
1,600
959
11,304
1,844

209,524'
12,129
62,634'
740
26,006'
43,592'
6,412
2,686
9
2,381
120
189
30,125'
1,175'
5,771
1,601
957
11,086'
1,910

204,272'
12,335
58,314'
592
25,69C
44,355'
6,321'
2,650
9
2,372
115
184
30,055'
1,045'
4,730
1,599
962
11,044'
1,900

201,887
12,256
56,463
300
25,493
43,782
6,328
2,649
0
2,354
109
182
30,293
1,344
4,977
1,565
950
10,956
1,884

200,578
12,157
52,905
387
25,981
44,687
6,490
2,743
0
2,396
107
268
31,072
1,091
4,631
1,567
949
11,281
1,868

202,352
12,223
54,935
359
26,581
43,199
6,547
2,784
0
2,384
105
417
31,575
992
4,555
1,539
966
11,340
1,839

66,316

66,212

96,070

91,593

89,133

88,738'

89,534'

87,903

86,752

91,794

710
1,849
7,293
425
724
2,088
29,066
9,285
2,555
1,125
5,044
6,152

639
1,535
6,797
450
698
1,991
31,249
9,226
2,224
845
4,298
6,260

787
2,678
8,307
321
723
1,635
59,620
7,182
2,217
578
4,122
7,901

873
2,893
9,242
324
685
1,519
55,396
6,184
2,127
557
4,868
6,925

1,373
2,914
8,261
486
662
1,543
53,579
6,031
2,282
490
5,152
6,361

1,360
3,278
7,779'
314
627
1,509
54,300'
5,352
2,121
461
4,496'
7,142'

1,175
3,592
7,727
379
657
1,459
55,167'
6,076
2,064
540
3,697
7,001'

993
3,301
7,658
429
677
1,450
55,097
5,314
2,109
552
3,808
6,514

929
2,487
7,416
416
639
1,412
54,962
4,952
2,210
565
3,913
6,850

919
2,772
6,509
565
577
1,450
61,544
4,582
2,147
530
4,329
5,871

57 Africa
58 Egypt
59 Morocco
60 South Africa
61 Zaire
62 Oil-exporting countries 5
63 Other

6,615
728
583
2,795
18
842
1,649

5,407
721
575
1,942
20
630
1,520

4,650
567
598
1,550
28
694
1,213

4,688
593
585
1,548
42
748
1,173

4,871
618
584
1,558
42
861
1,209

4,800'
574
565
1,578
41
801
1,241'

4,876
585
566
1,598
43
840
1,246

4,707
599
563
1,506
39
818
1,184

4,703
571
568
1,479
38
866
1,182

4,737
584
603
1,497
35
862
1,156

64 Other countries
65 Australia
66 All other

3,447
2,769
678

3,390
2,413
978

3,289
1,944
1,345

2,869
1,893
976

2,884
1,992
892

2,949
2,065
884

2,828
1,897
931

2,996
1,980
1,016

2,601
1,693
908

2,766
1,686
1,080

800

1,030

3,021

402

1,941

5,268'

830

2,132

1,527

1,573

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
37 Mexico
38 Netherlands Antilles
39 Panama
40 Peru
41
Uruguay
42 Venezuela
43 Other Latin America and Caribbean
44
45
46
47
48
49
50
51
52
53
54
55
56

China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle East oil-exporting countries 4
Other Asia

67 Nonmonetary international and regional
organizations

1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
3. Included in "Other Latin America and Caribbean" through March 1978.




4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in
"Other Western Europe."

Nonbank-Reported

Data

3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States Payable in U.S. Dollars
Millions of dollars, end of period
1987 R

Type of claim

1984

1986 R

1985

Feb.

Mar.

Apr.

May

June

July

Aug."

1 Total

433,078

430,489

478,187

417,126

448,730

439,509

438,135

465,267

422,971

426,557

2
3
4
5
6
7
8

400,162
62,237
156,216
124,932
49,226
75,706
56,777

401,608
60,507
174,261
116,654
48,372
68,282
50,185

444,265
64,112
211,615
122,715
57,484
65,232
45,823

417,126
62,032
190,527
120,219
55,560
64,659
44,348

417,290
64,029
191,620
117,503
54,121
63,382
44,138

439,509
66,942
207,042
120,926
57,450
63,476
44,599

438,135
62,788
203,682
127,155
61,659
65,495
44,511

432,208
63,512
199,273
125,148
60,447
64,701
44,275

422,971
64,242
190,395
123,377
59,271
64,107
44,957

426,557
64,219
197,559
121,781
56,838
64,943
42,998

32,916
3,380

28,881
3,335

33,922
4,413

31,439
3,400

33,059
3,474

23,805

19,332

24,044

20,551

21,384

5,732

6,214

5,465

7,488

8,202

37,103

28,487

25,631

25,449

23,493

40,714

38,102

42,129

40,224

n.a.

Banks' own claims on foreigners
Foreign public borrowers
Own foreign offices
Unaffiliated foreign banks
Deposits
Other
All other foreigners

9 Claims of banks' domestic customers 2 ...
11 Negotiable and readily transferable
12 Outstanding collections and other

13 MEMO: Customer liability on

Dollar deposits in banks abroad,
reported by nonbanking business
enterprises in the United States . . . .

48,441

43,575

45,521

44,860

38,039

3. Principally negotiable time certificates of deposit and bankers acceptances.
4. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see July 1979 BULLETIN, p.

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.

550.

NOTE. Beginning April 1978, data for banks' own claims are given on a monthly
basis, but the data for claims of banks' own domestic customers are available on
a quarterly basis only.

3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1986r
Maturity; by borrower and area

1983

1984

1987r

1985
Sept.

1 Total
2
3
4
5
6
7

8
9
10
11
12
13
14
15
16
17
18
19

By borrower
Maturity of 1 year or less1
Foreign public borrowers
All other foreigners
Maturity over 1 year
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 2
Maturity of over 1 year 1
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 2

1. Remaining time to maturity.




Dec.

Mar.

June

243,715

243,952

227,903

225,119

231,433

226,760

235,021

176,158
24,039
152,120
67,557
32,521
35,036

167,858
23,912
143,947
76,094
38,695
37,399

160,824
26,302
134,522
67,078
34,512
32,567

155,610
22,528
133,083
69,509
38,350
31,159

159,790
24,723
135,068
71,643
39,898
31,745

155,239
23,496
131,743
71,521
40,718
30,803

165,735
23,208
142,527
69,286
39,642
29,644

56,117
6,211
73,660
34,403
4,199
1,569

58,498
6,028
62,791
33,504
4,442
2,593

56,585
6,401
63,328
27,966
3,753
2,791

59,664
6,204
58,363
26,444
3,090
1,845

61,346
5,845
56,174
29,291
2,882
4,252

58,001
5,559
54,321
30,969
3,148
3,240

68,022
5,543
55,200
30,635
2,978
3,355

13,576
1,857
43,888
4,850
2,286
1,101

9,605
1,882
56,144
5,323
2,033
1,107

7,634
1,805
50,674
4,502
1,538
926

7,237
1,930
54,149
3,978
1,479
736

6,851
1,930
56,415
4,120
1,539
787

6,764
1,873
56,540
4,151
1,630
564

6,505
1,631
55,502
3,488
1,522
638

2. Includes nonmonetary international and regional organizations.

A61

A62

International Statistics • December 1987

3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1-2
Billions of dollars, end of period
1985
Area or country

1984

1986

1987

1985
June

1 Total

Sept.

Dec.

Mar.

June

Sept.

Dec.

Mar.

June

405.7

391.9

396.8

394.9

391.9

393.7'

390.3'

389.8'

390.0

398.8'

388.1

148.1
8.7
14.1
9.0
10.1
3.9
3.2
3.9
60.3
7.9
27.1

148.5
9.3
12.3
10.5
9.8
3.7
2.8
4.4
64.6
7.0
24.2

146.7
8.9
13.5
9.6
8.6
3.7
2.9
4.0
65.7
8.1
21.7

152.0
9.5
14.8
9.8
8.4
3.4
3.1
4.1
67.1
7.6
24.3

148.5
9.3
12.3
10.5
9.8
3.7
2.8
4.4
64.6
7.0
24.2

156.9'
8.4'
13.8
11.3
8.5
3.5
2.9
5.4
68.8'
6.4'
28.0

160.1'
9.0
15.1
11.5
9.3
3.4
2.9
5.6
69.2'
6.9
27.2

158.9'
8.5
14.7
12.5
8.1
3.9
2.7
4.8
70.3'
6.1
27.4'

157.6'
8.4
13.8
11.7
9.0
4.6
2.4
5.5
71.9'
5.4
25.(y

164.5'
9.1
13.4
12.2
8.6
4.4
3.0
5.8
74.3'
5.2
28.5'

158.5
8.5
12.6
11.0
7.5
7.3
2.4
5.7
72.4
4.6
26.4

13 Other developed countries
14
Austria
15
Denmark
16 Finland
17
Greece
18
Norway
19
Portugal
20
Spain
21
Turkey
22
Other Western Europe
23
South Africa
24
Australia

33.6
1.6
2.2
1.9
2.9
3.0
1.4
6.5
1.9
1.7
4.5
6.0

30.4
1.6
2.4
1.6
2.6
2.9
1.3
5.8
1.9
2.0
3.2
5.0

32.3
1.6
1.9
1.8
2.9
2.9
1.3
5.9
2.0
1.8
3.9
6.2

32.0
1.7
2.1
1.8
2.8
3.4
1.4
6.1
2.1
1.7
3.3
5.6

30.4
1.6
2.4
1.6
2.6
2.9
1.3
5.8
1.9
2.0
3.2
5.0

31.6
1.6
2.5
1.9
2.5
2.7
1.1
6.5'
2.3
2.4
3.2
4.9

30.7'
1.7
2.4
1.6
2.6
3.0
1.1'
6.4
2.5
2.1
3.1
4.2

29.5'
1.7
2.3
1.7
2.3
2.7
1.0
6.7
2.1
1.6
3.1
4.1

26.1'
1.7
1.7
1.4
2.3
2.4
.8
5.8
2.0
1.4
3.1'
3.5

26.0
1.9
1.7'
1.4
2.1
2.2
.9
6.3'
1.9
1.4'
3.1
3.2

25.7
1.9
1.6
1.5
2.0
2.2
.8
6.0
2.1
1.5
3.1
3.1

25 OPEC countries 3
26
Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
30
African countries

24.9
2.2
9.3
3.3
7.9
2.3

21.6
2.1
8.9
3.0
5.5
2.0

22.8
2.2
9.3
3.1
6.1
2.2

22.7
2.2
9.0
3.1
6.2
2.3

21.6
2.1
8.9
3.0
5.5
2.0

20.7
2.2
8.7
3.3
4.7
1.8

20.6
2.1
8.8
3.0
5.0
1.7

20.0
2.2
8.7
2.8
4.6
1.7

19.6
2.2
8.6
2.5
4.5
1.7

20.4
2.1
8.7
2.4
5.5
1.7'

19.2
2.1
8.7
2.2
4.5
1.7

2 G-10 countries and Switzerland
Belgium-Luxembourg
3
4
France
5 Germany
Italy
6
7
Netherlands
8
Sweden
Switzerland
9
10
United Kingdom
11
Canada
12 Japan

111.8

105.1

110.0

107.8

105.1

103.9'

102.0'

ioo.<r

99.7'

100.1

100.2

32
33
34
35
36
37
38

Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America

8.7
26.3
7.0
2.9
25.7
2.2
3.9

8.9
25.6
7.0
2.7
24.2
1.8
3.4

8.6
26.6
6.9
2.7
25.3
2.1
3.7

8.9
25.5
6.6
2.6
24.4
1.9
3.5

8.9
25.6
7.0
2.7
24.2
1.8
3.4

8.9
25.8'
7.0
2.3
24.1
1.7
3.3

9.2
25.5'
7.1
2.2
24.0'
1.6
3.3

9.3
25.4'
7.2
2.0
24.0'
1.5
3.3

9.5
25.3
7.1
2.1
23.9
1.5'
3.1

9.6'
25.6
7.3
2.0
23.9
1.4
3.0

9.5
24.5
7.2
2.0
25.3
1.4
3.0

39
40
41
42
43
44
45
46
47

Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia

.7
5.1
.9
1.8
10.6
2.7
6.0
1.8
1.1

.5
4.5
1.2
1.6
9.4
2.4
5.7
1.4
1.0

.3
5.5
.9
2.3
10.0
2.8
6.0
1.6
.9

1.1
5.1
1.1
1.5
10.4
2.7
6.0
1.7
.9

.5
4.5
1.2
1.6
9.4
2.4
5.7
1.4
1.0

.6
4.3
1.2
1.3
9.5
2.2
5.6
1.3
.9

.6
3.7
1.3
1.6
8.7
2.0
5.7
1.1
.8

.6
4.3
1.3
1.4
7.3
2.1
5.4
1.0
.7

.4
4.9
1.2
1.5
6.7
2.1
5.4
.9
.7

.9
5.5
1.7
1.4
6.3'
1.9
5.4
.9
.6

.6
6.6
1.7
1.3
5.6
1.7
5.4
.8
.8

48
49
50
51

Africa
Egypt
Morocco
Zaire
Other Africa 4

1.2
.8
.1
2.1

1.0
.9
.1
1.9

1.0
.8
.1
2.0

1.0
.9
.1
2.0

1.0
.9
.1
1.9

.9
.9
.1
1.9

.9
.9
.1
1.7

.7
.9
.1
1.6

.7
.9
.1
1.6

.6
.9
.1
1.4

.6
.9
.1
1.3

52 Eastern Europe
53
U.S.S.R
54
Yugoslavia
55
Other

4.4
.1
2.3
2.0

4.2
.1
2.2
1.8

4.3
.3
2.2
1.8

4.6
.2
2.4
1.9

4.2
.1
2.2
1.8

4.0
.3
2.0
1.7

4.0
.3
2.0
1.7

3.4
.1
1.9
1.4

3.2
.1
1.7
1.4

3.1
.1
1.6
1.3

3.4
.3
1.7
1.4

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

65.6
21.5
.9
11.8
3.4
6.7
.1
11.4
9.8
.0

65.4
21.4
.7
13.4
2.3
6.0
.1
11.5
9.9
.0

63.9
21.1
.9
12.1
3.2
5.4
.1
11.4
9.7
.0

58.8
16.6
.8
12.3
2.3
6.1
.0
11.4
9.4
.0

65.4
21.4
.7
13.4
2.3
6.0
.1
11.5
9.9
.0

60.1
21.4'
.7
11.4'
2.3
4.4
.1
11.5
8.5'
.0

56.2'
17.1'
.5
13.0
2.3
4.2
.1
9.5
9.3
.0

60.9'
19^
.4
13.2
1.9
5.1
.1
10.5
9.7
.0

64 .<y
22.3'
.7
14.5
1.8
4.1
.1
11.2
9.4'
.0

65.6'
23.6'
.8
13.6'
1.7
5.4'
.1
11.5
8.8
.0

62.8
19.6
.6
15.0
1.3
5.3
.1
12.5
8.4
.0

66 Miscellaneous and unallocated 7

17.3

16.9

16.9

17.3

16.9

16.4'

16.8'

17.2

19.8'

19.1'

18.4

31 Non-OPEC developing countries

1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or
another foreign branch of the same banking institution. The data in this table
combine foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the
claims of U.S. offices in table 3.18 (excluding those held by agencies and branches
of foreign banks and those constituting claims on own foreign branches).
2. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches




from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
3. This group comprises the Organization of Petroleum Exporting Countries
shown individually, other members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait,
Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates), and Bahrain and
Oman (not formally members of OPEC).
4. Excludes Liberia.
5. Includes Canal Zone beginning December 1979.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.

Nonbank-Reported

Data

A63

3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States1
Millions of dollars, end of period
1986
Type, and area or country

1983

1984

1987

1985
June

Sept.

Dec.'

Mar.

June"

1 Total

25,346

29,357

27,685

25,126'

26,117'

25,478

27,020

27,947

?. Payable in dollars
3 Payable in foreign currencies

22,233
3,113

26,389
2,968

24,296
3,389

21,440''
3,686

22,278'
3,839'

21,759
3,719

21,611
5,408

23,408
4,538

By type
4 Financial liabilities
5 Payable in dollars
6 Payable in foreign currencies

10,572
8,700
1,872

14,509
12,553
1,955

13,460
11,257
2,203

ll,808 r
9,717'
2,091

13,219'
10,947'
2,272'

12,140
9,782
2,358

12,997
10,397
2,600

13,551
10,322
3,229

7 Commercial liabilities
8 Trade payables
9 Advance receipts and other liabilities

14,774
7,765
7,009

14,849
7,005
7,843

14,225
6,685
7,540

13,318r
5,670'
7,648

12,899
5,723
7,175

13,338
6,357
6,981

14,023
6,813
7,210

14,396
6,866
7,530

13,533
1,241

13,836
1,013

13,039
1,186

11,723'
1,595

11,331
1,567

11,977
1,361

11,215
2,808

13,087
1,310

5,742
302
843
502
621
486
2,839

6,728
471
995
489
590
569
3,297

7,560
329
857
434
745
620
4,254

7,126'
390
686
280
635
505
4,333'

8,625'
424
501
319
708
537'
5,705'

7,917
245
644
270
704
615
5,148

8,258
205
742
368
693
678
5,312

8,775
231
812
305
669
686
5,810

10
11

12
13
14
15
16
17
18

Payable in dollars
Payable in foreign currencies
By area or country
Financial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

19

Canada

764

863

839

367

362

399

431

907

70
71
n
73
74
75
26

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

2,596
751
13
32
1,041
213
124

5,086
1,926
13
35
2,103
367
137

3,184
1,123
4
29
1,843
15
3

2,463
854'
14
27
1,426'
30
3

2,283
842'
4
28
1,291'
18
5

1,964
614
4
32
1,163
22
3

2,369
669
0
26
1,545
30
3

1,747
398
0
22
1,223
29
5

77
78
29

Asia
Japan
Middle East oil-exporting countries

1,424
991
170

1,777
1,209
155

1,815
1,198
82

1,735
1,264
43

1,881
1,446
3

1,792
1,377
8

1,869
1,459
7

2,054
1,666
7

30
31

Africa
Oil-exporting countries 3

19
0

14
0

12
0

12
0

4
2

1
1

3
1

1
0

Allother 4

27

41

50

104

63'

67

67

66

3,245
62
437
427
268
241
732

4,001
48
438
622
245
257
1,095

4,074
62
453
607
364
379
976

3,817
58
358
561
586
284
864

4,367
75
370
637
613
361
1,138'

4,457
100
340
722
493
385
1,301

4,383
85
278
589
372
484
1,287

4,950
111
419
590
339
555
1,366

32
33
34
35
36
37
38
39

Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

40

Canada

1,841

1,975

1,449

1,367

1,312

1,389

1,350

1,250

41
47.
43
44
45
46
47

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

1,473
1
67
44
6
585
432

1,871
7
114
124
32
586
636

1,088
12
77
58
44
430
212

1,242
10
294
45
35
235
488

846
37
172
43
45
197
207

873
32
129
59
48
211
215

1,075
28
296
81
88
182
223

1,027
13
246
87
64
154
202

48
49
50

Asia
Japan
Middle East oil-exporting countries 2 ' 5

6,741
1,247
4,178

5,285
1,256
2,372

6,046
1,799
2,829

5,273'
2,100
1,985'

4,807
2,136
1,492

5,020
2,047
1,668

5,681
2,437
1,931

5,563
2,242
1,842

51
52

Africa
Oil-exporting countries 3

553
167

588
233

587
238

567
215

585
176

622
196

520
170

523
166

921

1,128

982

1,053

982

977

1,014

1,083

53

All other

4

1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).




3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.

A64

International Statistics • December 1987

3.23 CLAIMS ON UNAFFILIATED FOREIGNERS
United States1

Reported by Nonbanking Business Enterprises in the

Millions of dollars, end of period
1986
Type, and area or country

1983

1984

1987

1985
June

Sept.

Dec.'

Mar.

June"

1 Total

34,911

29,901

28,760

33,851r

34,007'

33,292

33,778

31,421

2 Payable in dollars
3 Payable in foreign currencies

31,815
3,096

27,304
2,597

26,457
2,302

31,669r
2,182

31,302'
2,706'

30,771
2,521

30,716
3,062

28,325
3,097

By type
4 Financial claims
5 Deposits
6
Payable in dollars
Payable in foreign currencies
7
8 Other financial claims
Payable in dollars
9
Payable in foreign currencies
10

23,780
18,496
17,993
503
5,284
3,328
1,956

19,254
14,621
14,202
420
4,633
3,190
1,442

18,774
15,526
14,911
615
3,248
2,213
1,035

24,709'
21,401'
20,846'
555
3,308
2,287
1,021

24,795'
18,986'
18,422'
565'
5,808'
4,435'
1,374'

23,461
18,018
17,461
556
5,444
4,089
1,354

24,192
18,142
17,315
827
6,050
4,700
1,350

21,567
15,398
14,214
1,183
6,169
4,894
1,275

11 Commercial claims
12 Trade receivables
13 Advance payments and other claims

11,131
9,721
1,410

10,646
9,177
1,470

9,986
8,696
1,290

9,142
7,802
1,341

9,213
8,030
1,183

9,831
8,680
1,151

9,586
8,579
1,007

9,855
8,855
1,000

14
15

10,494
637

9,912
735

9,333
652

8,537
606

8,445
767

9,220
611

8,701
886

9,216
639

6,488
37
150
163
71
38
5,817

5,762
15
126
224
66
66
4,864

6,812
10
184
223
61
74
6,007

10,144'
11
257
148
17
167'
9,328

10,501'
67
418
129
44
138
9,478'

8,759
41
138
111
86
182
7,957

9,342
15
172
163
69
74
8,496

9,831
6
154
92
75
95
9,192

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

24
25
26
27
28
29
30

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

31
32
33
34
35
36
37
38
39
40
41
42
43

5,989

3,988

3,260

4,422'

3,970'

4,063

3,873

3,331

10,234
4,771
102
53
4,206
293
134

8,216
3,306
6
100
4,043
215
125

7,846
2,698
6
78
4,571
180
48

9,258
3,315
17
75
5,402
176
42

9,438'
2,807'
19
105
6,060'
173
40

9,208
2,624
6
73
6,078
174
24

9,548
3,945
3
71
5,128
164
23

7,469
2,572
6
103
4,2%
167
22

Asia
Japan
Middle East oil-exporting countries

764
297
4

961
353
13

731
475
4

776
499
2

715'
365'
2

1,323
1,001
11

1,205
941
11

862
479
10

Africa
Oil-exporting countries 3

147
55

210
85

103
29

89
25

84
18

85
28

84
19

58
9

All other 4

159

117

21

20

86'

22

140

16

3,670
135
459
349
334
317
809

3,801
165
440
374
335
271
1,063

3,533
175
426
346
284
284
898

3,304
131
391
418
230
228
674

3,385
126
415
405'
184
233
853

3,665
133
395
441
200
215
926

3,612
143
411
444
163
193
1,012

3,727
135
431
525
173
187
985

Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

44

Canada

829

1,021

1,023

965

950

919

909

960

45
46
47
48
49
50
51

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

2,695
8
190
493
7
884
272

2,052
8
115
214
7
583
206

1,753
13
93
206
6
510
157

1,611
24
148
193
29
323
181

1,687
29
132
207
23
316
192

1,880
28
158
236
48
391
224

1,797
11
130
211
22
415
157

2,017
14
127
198
14
592
183

52
53
54

Asia
Japan
Middle East oil-exporting countries

3,063
1,114
737

3,073
1,191
668

2,982
1,016
638

2,574
845
622

2,487
792
600

2,653
862
509

2,604
914
467

2,515
934
391

55
56

Africa
Oil-exporting countries3

588
139

470
134

437
130

450
170

469
168

494
135

431
141

377
122

57

All other 4

286

229

257

237

234

220

233

258

1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).




3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.

Securities Holdings and Transactions

A65

3.24 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1987

1987
Transactions, and area or country

1985

1986
Jan.Aug.

Feb.

Mar.

Apr.

May

June

July

Aug."

U.S. corporate securities
STOCKS

81,995
77,054

148,101'
129,382

168,874
148,400

20,702'
17,598'

23,064'
18,001'

20,735'
17,390'

19,632'
15,956'

18,682
17,054

23,645
21,883

24,774
24,554

3 Net purchases, or sales ( - )

4,941

18,719r

20,475

3,104'

5,063

3,345'

3,676'

1,628

1,763

220

4 Foreign countries

4,857

18,927''

20,519

3,204

5,026

3,282'

3,711'

1,673

1,749

117

2,057
-438
730
-123
-75
1,665
356
1,718
238
296
24
168

9,559
459
341
936
1,560
4,826
817'
3,030'
976
3,876
297
373

8,700
1,801
-109
989
424
4,739
623
2,275
-1,529
9,824
91
536

1,786
446
16
91
100
996
-118
331
-175
1,153
15
212

1,841
656
19
69
177
783
343
372
-230
2,638
1
61

1,060'
332
-101
124
306
211'
252
36
21
1,790
59
65

1,474'
123
118
120
351
67C
48
363'
-90
1,686
45
185

669
107
-155
232
-206
671
-238
290
-26
1,009
-30
-1

717
66
-96
153
-80
635
255
387
-913
1,290
-14
27

81
-69
28
135
-325
125
-21
188
-252
168
16
-63

-45

-100

37

62

-36

-45

14

102

1 Foreign purchases
2 Foreign sales

5
6
7
8
9
10
11
12
13
14
15
16

Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries

17 Nonmonetary international and
regional organizations

84

-208

BONDS2

18 Foreign purchases
19 Foreign sales

86,587
42,455

123,149'
72,499

75,345
55,162

8,304'
5,886'

12,127'
8,274'

9,857'
6,559

8,963
6,823

10,364
8,305

9,407
6,507

7,015
5,628

20 Net purchases, or sales ( - )

44,132

50,650'

20,183

2,418'

3,853'

3,297r

2,140

2,060

2,900

1,388

21 Foreign countries

44,227

49,803'

20,212

2,179

4,000'

3,107'

2,270

1,968

2,891

1,582

22
23
24
25
26
27
28
29
30
31
32
33

40,047
210
2,001
222
3,987
32,762
190
498
-2,648
6,091
11
38

39,323'
389
-251
387
4,529
33,902'
548
1,468
-2,961
11,270
16
139

17,095
224
154
133
1,598
14,914
763
990
-394
1,772
5
-18

1,402
17
145
-29
78
1,178
364
98
-139
469
1
-16

3,607'
81
198
69
558
2,941'
190
65
-12
169
3
-22

2,833'
-22
-121
47
50
2,809'
161
123
62
-73
1
0

1,682
7
-29
38
182
1,544
23
254
59
252
7
-6

2,204
43
80
37
105
1,795
49
-4
-128
-169
8
8

2,348
65
116
-65
247
1,914
87
305
-166
300
1
15

1,647
26
-22
44
312
1,343
-8
46
-14
-93
-17
20

-95

847

-30

239'

-147'

IW

-130

92

9

-194

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

-3,941
20,861
24,803

-1,912
48,787
50,699

-2,730
60,267
62,997

-561
7,175
7,736

-785'
7,015
7,799'

-1,174'
7,124'
8,297'

636
8,016
7,379'

-257
8,778
9,035

-11
8,583
8,593

-375
8,672
9,047

38 Bonds, net purchases, or sales ( - )
39 Foreign purchases
40 Foreign sales

-3,999
81,216
85,214

-3,356'
166,786'
170,142

-652
137,378
138,030

-75
15,822
15,897'

-632'
16,650
17,281'

-581'
19,020'
19,601'

-1,117'
20,049
21,166'

2,281'
25,799'
23,518'

-583
16,308
16,890

-264
12,304
12,569

41 Net purchases, or sales (—), of stocks and bonds . . . .

-7,940

-5,268'

-3,382

-636'

-1,416'

-1,755'

-481'

2,024'

-593

-639

42 Foreign countries

-9,003

-6,352'

-4,387

-716'

-1,683'

-1,889'

-499'

1,980'

-320

-1,233

43
44
45
46
47
48

-9,887
-1,686
1,797
659
75
38

-17,893
-875
3,484'
10,858
52
-1,977

-8,408
-3,175
666
7,528
47
-1,044

-1,224'
-566
104
925
0
45

-748'
-226'
-416
290'
-1
-583'

-2,704'
-3
259
637'
8
-86'

-1,990
-418
204
1,692'
20
-8

-31
-489
106'
2,513'
6
-124

-568
-592
-62
1,079
5
-182

-918
-485
81
224
5
-140

1,063

1,084

1,005

80

267

135

18

44

-274

594

Europe
Canada
Latin America and Caribbean
Asia
Africa
Other countries

49 Nonmonetary international and
regional organizations

1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
2. Includes state and local government securities, and securities of U.S.
government agencies and corporations. Also includes issues of new debt securi-




ties sold abroad by U.S. corporations organized to finance direct investments
abroad.

A66

International Statistics • December 1987

3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES
Millions of dollars

Foreign Transactions

1987
Country or area

1987

1986r

1985

Jan.Aug.

Feb.

Mar.

Apr.

May

June

July

Aug."

Transactions, net purchases or sales ( - ) during period 1
1 Estimated total 2

29,208

20,117

17,761

143'

7,040'

-2,985'

-281'

12,279'

878

1,144

2 Foreign countries 2

28,768

21,220

23,992

1,846

4,149'

-1,405

3,731

8,646'

3,680

2,786

3 Europe 2
Belgium-Luxembourg
4
5 Germany
6
Netherlands
Sweden
7
8
Switzerland
9
United Kingdom
Other Western Europe
10
Eastern Europe
11
12 Canada

4,303
476
1,917
269
976
773
-1,810
1,701
0
-188

17,056
349
7,670
1,283
132
329
4,681
2,613
0
881

18,187
684
10,192
-145
151
3,453
1,229
2,650
-27
3,322

1,751
211
1,118
41
440
473
-15
-518
0
-416

5,837'
-35
2,141
-212
334
1,641
328
1,640'
0
709

375
-35
1,106
-22
32
652
-1,089
-230
-40
703

1,695
4
1,417
352
-166
413
-524
198
1
37

3,640
58
1,534
111
-183
585
617
913
5
413

4,519
54
1,516
204
76
512
1,115
1,042
0
654

-1,007
366
780
-254
-153
-688
-431
-631
4
378

13 Latin America and Caribbean
14
Venezuela
15
Other Latin America and Caribbean
16
Netherlands Antilles
17
18 Japan
19
20 All other

4,315
248
2,336
1,731
19,919
17,909
112
308

926
-95
1,129
-108
1,345
-22
-54
1,067

-2,337
122
-1,254
-1,205
4,342
1,572
-41
519

-290
18
373
-682
1,231
1,767
-34
-396

-62
102
-156
-8
-2,379'
-2,457
12
32

-30
14
-176
133
-2,880
-2,561
-15
442

-381
11
-302
-90
2,136
-541
11
233

780'
-17
-514'
1,311
3,531
4,199
-18
300

-673
-4
15
-684
-671
-597
20
-168

-675
30
-49
-656
4,318
1,839
-24
-205

442
-436
18

-1,102
-1,430
157

-6,233
-5,469
13

-1,703'
-1,704'
0

2,890'
2,841'
11

-1,58c
-1,342'
0

-4,013'
-3,147'
0

3,633
3,515
3

-2,802
-2,875
0

-1,642
-1,687
0

28,768
8,135
20,631

21,220
14,214
7,010

23,992
23,679
312

1,846
834
1,012

4,149'
5,852'
-1,702'

-1,405
2,489
-3,894

3,731
4,447
-715

8,646'
3,719
4,927'

3,680
2,251
1,428

2,786
2,612
174

-1,547
7

-1,529
5

-1,439
19

-962
1

225'
17

-120
0

636
0

-857
1

112
0

268
0

21 Nonmonetary international and regional organizations
2.7 International
Latin American regional
23
Memo
2,4 Foreign countries
2,5 Official institutions
Other foreign
26
77
28

Oil-exporting countries
Middle East 3
Africa

1. Estimated official and private transactions in marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based on
monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
2. Includes U.S. Treasury notes publicly issued to private foreign residents
denominated in foreign currencies.




3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.

Interest and Exchange Rates

A67

3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Rate on Sept. 30, 1987

Rate on Sept. 30, 1987

Country

Month
effective
3.5
7.25
49.0
9.57
7.0

Austria..
Belgium .
Brazil . . .
Canada..
Denmark

Rate on Sept. 30, 1987

Country

Country

Jan. 1987
July 1987
Mar. 1981
Sept. 1987
Oct. 1983

Month
effective
France
Germany, Fed. Rep. of.
Italy
Japan
Netherlands

1. As of the end of February 1981, the rate is that at which the Bank of France
discounts Treasury bills for 7 to 10 days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either discounts

7.5
3.0
12.0

2.5
4.5

July 1987
Jan. 1987
Aug. 1987
Feb. 1987
Mar. 1986

Month
effective
Norway
Switzerland
United Kingdom''
Venezuela

8.0
3.5

June 1983
Jan. 1987
Oct. 1985

or makes advances against eligible commercial paper and/or government commercial banks or brokers. For countries with more than one rate applicable to
such discounts or advances, the rate shown is the one at which it is understood the
central bank transacts the largest proportion of its credit operations.

3.27 FOREIGN SHORT-TERM INTEREST RATES
Percent per annum, averages of daily figures
1987
Country, or type

1984

1985

1986
Mar.

May

June

July

Aug.

Sept.

Eurodollars
United Kingdom
Canada
Germany
Switzerland

10.75
9.91
11.29
5.96
4.35

8.27
12.16
9.64
5.40
4.92

6.70
10.87
9.18
4.58
4.19

6.37
9.90
7.14
3.97
3.93

6.73
9.72
7.62
3.85
3.65

7.25
8.79
8.22
3.73
3.63

7.11
8.85
8.40
3.67
3.77

6.87
9.17
8.61
3.83
3.60

6.91
9.95
9.11
3.93
3.55

7.51
10.12
9.32
3.98
3.51

Netherlands
France
Italy
Belgium
Japan

1
2
3
4
5
6
7
8
9
10

Apr.

6.08
11.66
17.08
11.41
6.32

6.29
9.91
14.86
9.60
6.47

5.56
7.68
12.60
8.04
4.96

5.38
7.85
10.65
7.49
4.00

5.31
7.87
10.03
7.21
3.92

5.11
8.09
10.15
7.13
3.77

5.15
8.18
10.67
6.78
3.71

5.21
7.83
10.92
6.54
3.74

5.27
7.88
11.%
6.55
3.71

5.31
7.85
12.36
6.56
3.77

NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate.




A68

International Statistics • December 1987

3.28 FOREIGN EXCHANGE RATES
Currency units per dollar
1987
Country/currency

1984

1985

1986
Apr.

1
2
3
4
5
6

1

Australia/dollar
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone

7
8
9
10
11
12
13

Italy/lira
Japan/yen
Malay sia/ringgit
Netherlands/guilder
New Zealand/dollar1
Norway/krone
Portugal/escudo

21
22
23
24
25
26
27
28
29
30

June

July

Aug.

Sept.

87.937
20.005
57.749
1.2953
2.3308
10.354

70.026
20.676
59.336
1.3658
2.9434
10.598

67.093
15.260
44.662
1.3896
3.4615
8.0954

71.19
12.739
35.562
1.3183
3.7314
6.8388

71.42
12.574
37.091
1.3411
3.7314
6.7333

71.79
12.793
37.712
1.338
3.7314
6.8555

70.79
12.996
38.329
1.3262
3.7314
7.0179

70.72
13.041
38.528
1.3256
3.7314
7.1279

72.68
12.765
37.657
1.3154
3.7314
6.9893

6.0007
8.7355
2.8454
112.73
7.8188
11.348
108.64

6.1971
8.9799
2.9419
138.40
7.7911
12.332
106.62

5.0721
6.9256
2.1704
139.93
7.8037
12.597
134.14

4.4227
6.0332
1.8125
133.502
7.8023
12.8224
147.49

4.3604
5.9748
1.7881
133.35
7.8049
12.666
149.59

4.4281
6.0739
1.8189
136.06
7.8080
12.837
147.25

4.4882
6.1530
1.8482
139.313
7.8090
13.01
144.99

4.5017
6.1934
1.8553
140.63
7.8091
13.085
144.18

4.3954
6.0555
1.8134
138.40
7.8035
12.993
147.54

1756.10
237.45
2.3448
3.2083
57.837
8.1596
147.70

1908.90
238.47
2.4806
3.3184
49.752
8.5933
172.07

1491.16
168.35
2.5830
2.4484
52.456
7.3984
149.80

1292.96
143.00
2.4861
2.0447
57.751
6.7781
140.339

1290.80
140.48
2.4759
2.0154
57.639
6.6632
139.18

1316.50
144.55
2.5078
2.0490
58.686
6.7147
142.12

1337.96
150.29
2.5414
2.0814
59.644
6.7632
144.51

1344.18
147.33
2.5361
2.0903
58.923
6.7911
145.57

1310.86
143.29
2.5189
2.0413
63.352
6.6505
142.94

2.1325
69.534
807.91
160.78
25.428
8.2706
2.3500
39.633
23.582
133.66

2.2008
45.57
861.89
169.98
27.187
8.6031
2.4551
39.889
27.193
129.74

2.1782
43.952
884.61
140.04
27.933
7.1272
1.7979
37.837
26.314
146.77

2.1350
49.55
845.00
126.975
28.902
6.3210
1.4968
33.863
25.695
162.99

2.1202
49.87
832.53
125.28
28.988
6.2606
1.4705
32.354
25.629
166.66

2.1176
49.41
818.39
126.33
29.171
6.3482
1.5085
31.226
25.779
162.88

2.1183
48.52
811.81
126.97
29.405
6.4466
1.5365
31.114
26.041
160.90

2.1082
48.16
811.87
125.57
29.643
6.4898
1.5364
30.290
25.926
159.96

2.0924
48.86
810.07
121.34
29.902
6.3844
1.5029
30.151
25.765
164.46

138.19

143.01

112.22

97.09

96.05

97.78

99.36

99.43

97.23

Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee
Ireland/pound1

14
15
16
17
18
19
20

May

Singapore/dollar
South Africa/rand 1
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/point1
MEMO

31 United States/dollar2

1. Value in U.S. cents.
2. Index of weighted-average exchange value of U.S. dollar against the
currencies of 10 industrial countries. The weight for each of the 10 countries is the
1972-76 average world trade of that country divided by the average world trade of
all 10 countries combined. Series revised as of August 1978 (see FEDERAL
RESERVE BULLETIN, v o l . 6 4 , A u g u s t 1978, p . 700).




3. Currency reform.
NOTE. Averages of certified noon buying rates in New York for cable transfers.
Data in this table also appear in the Board's G.5 (405) release. For address, see
inside front cover.

A69

Guide to Tabular Presentation,
Statistical Releases, and Special Tables
GUIDE TO TABULAR

PRESENTATION

Symbols and Abbreviations
c
e
p
r
*

Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when
about half of the figures in that column are changed.)
Amounts insignificant in terms of the last decimal place
shown in the table (for example, less than 500,000
when the smallest unit given is millions)

0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs

Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable

General Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed
issues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct

STATISTICAL

obligations of the Treasury. "State and local government"
also includes municipalities, special districts, and other political subdivisions.
In some of the tables details do not add to totals because of
rounding.

RELEASES

List Published Semiannually, with Latest Bulletin Reference
Anticipated schedule of release dates for periodic releases

SPECIAL

Issue
December 1987

Page
A77

TABLES

Published Irregularly, with Latest Bulletin Reference
Assets and liabilities of commercial banks, June 30, 1986
Assets and liabilities of commercial banks, September 30, 1986
Assets and liabilities of commercial banks, December 31, 1986
Assets and liabilities of commercial banks, March 31, 1987
Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1986
Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1986
Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1987
Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1987
Terms of lending at commercial banks, August 1986
Terms of lending at commercial banks, November 1986
Terms of lending at commercial banks, February 1987
Terms of lending at commercial banks, May 1987
Pro forma balance sheet and income statements for priced service operations, June 30, 1987




June
July
July
October
March
May
August
November
December
February
May
September
November

1987
1987
1987
1987
1987
1987
1987
1987
1986
1987
1987
1987
1987

A76
A70
A76
A70
A70
A76
A70
A70
A70
A70
A70
A70
A74

A70

Federal Reserve Board of Governors
Chairman
Vice Chairman

MARTHA R . SEGER

MANUEL H . JOHNSON,

WAYNE D . ANGELL

OFFICE OF BOARD

MEMBERS

DIVISION

ALAN GREENSPAN,

JOSEPH R. COYNE, Assistant
DONALD J. WINN, Assistant

to the
to the

Board
Board

LYNN SMITH Fox, Special Assistant to the Board
BOB S. MOORE, Special Assistant to the Board

OF INTERNATIONAL

E D W I N M . TRUMAN, Staff Director
LARRY J. PROMISEL, Senior Associate
CHARLES J. SIEGMAN, Senior Associate
DAVID H . H O W A R D , Deputy Associate

ROBERT F. GEMMILL, Staff

LEGAL

DIVISION

MICHAEL BRADFIELD, General

Counsel

Deputy General Counsel
RICHARD M. ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
RICKI R. TIGERT, Assistant General Counsel
MARYELLEN A. BROWN, Assistant to the General Counsel

FINANCE

Director
Director
Director

Adviser

DONALD B . A D A M S , Assistant
Director
PETER HOOPER I I I , Assistant
Director
KAREN H . JOHNSON, Assistant
Director
RALPH W . SMITH, JR., Assistant
Director

J. VIRGIL MATTINGLY, JR.,

OFFICE OF THE

SECRETARY

DIVISION

OF RESEARCH

AND

MICHAEL J. PRELL, Director
E D W A R D C . ETTIN, Deputy Director
JARED J. ENZLER, Associate
Director
THOMAS D . SIMPSON, Associate
Director

LAWRENCE SLIFMAN, Associate
WILLIAM W . WILES,
Secretary
BARBARA R. LOWREY, Associate

JAMES MCAFEE, Associate

Secretary
Secretary

DIVISION OF CONSUMER
AND COMMUNITY
AFFAIRS
GRIFFITH L . GARWOOD,

Director

GLENN E . LONEY, Assistant
Director
ELLEN M A L A N D , Assistant
Director
DOLORES S . SMITH, Assistant
Director

WILLIAM TAYLOR, Staff Director
1
FRANKLIN D . DREYER, Deputy Director
D O N E . KLINE, Associate
Director
FREDERICK M . STRUBLE, Associate
Director
WILLIAM A . RYBACK, Deputy Associate
Director
STEPHEN C . SCHEMERING, Deputy Associate
Director
RICHARD SPILLENKOTHEN, Deputy Associate
Director
HERBERT A . BIERN, Assistant
Director

JOE M. CLEAVER, Assistant Director
ANTHONY CORNYN, Assistant
Director
JAMES I. GARNER, Assistant
Director
JAMES D . GOETZINGER, Assistant
Director
MICHAEL G . MARTINSON, Assistant
Director
ROBERT S . PLOTKIN, Assistant
Director
SIDNEY M . SUSSAN, Assistant
Director
LAURA M . HOMER, Securities Credit Officer
1. On loan from the Federal Reserve Bank of Chicago.




Director

ELEANOR J. STOCKWELL, Associate
Director
MARTHA BETHEA, Deputy Associate
Director
PETER A . TINSLEY, Deputy Associate
Director
MARK N . GREENE, Assistant
Director
MYRON L . K W A S T , Assistant
Director
SUSAN J. LEPPER, Assistant
Director
MARTHA S . SCANLON, Assistant
Director
D A V I D J. STOCKTON, Assistant
Director
JOYCE K . ZICKLER, Assistant
Director
LEVON H . GARABEDIAN, Assistant
Director

(Administration)

DIVISION
DIVISION OF BANKING
SUPERVISION AND
REGULATION

STATISTICS

OF MONETARY

AFFAIRS

DONALD L . K O H N , Director
D A V I D E . LINDSEY, Deputy Director
BRIAN F . M A D I G A N , Assistant
Director
RICHARD D . PORTER, Assistant
Director

NORMAND R.V. BERNARD, Special Assistant to the Board

OFFICE OF THE INSPECTOR
BRENT L. BOWEN, Inspector

GENERAL
General

A71

and Official Staff
H . ROBERT HELLER
E D W A R D W . KELLEY, JR.

OFFICE OF
STAFF DIRECTOR

FOR

OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK
ACTIVITIES

MANAGEMENT

S . D A V I D FROST, Staff Director
E D W A R D T . M U L R E N I N , Assistant Staff Director
PORTIA W . THOMPSON, Equal Employment
Opportunity

DIVISION OF FEDERAL
BANK
OPERATIONS

Programs Officer

DIVISION

OF

PERSONNEL

CONTROLLER

JOHN H. PARRISH, Assistant Director
LOUISE L . R O S E M A N , Assistant
Director

GEORGE E . LIVINGSTON, Controller
STEPHEN J. CLARK, Assistant Controller

FLORENCE M . YOUNG,

(Programs

and Budgets)
DARRELL R . P A U L E Y ,

DIVISION

Assistant Controller

OF SUPPORT

(Finance)

SERVICES

ROBERT E . FRAZIER, Director
GEORGE M . L O P E Z , Assistant
D A V I D L . WILLIAMS, Assistant

Director
Director

OFFICE OF THE EXECUTIVE
INFORMATION RESOURCES

DIRECTOR FOR
MANAGEMENT

A L L E N E . B E U T E L , Executive
Director
STEPHEN R . M A L P H R U S , Associate
Director

DIVISION
SYSTEMS

OF HARDWARE

AND

SOFTWARE

BRUCE M . BEARDSLEY, Director
THOMAS C . J U D D , Assistant
Director
ELIZABETH B . RIGGS, Assistant
Director
ROBERT J. ZEMEL, Assistant
Director

DIVISION OF APPLICATIONS
STATISTICAL
SERVICES
WILLIAM R . JONES, Director
D A Y W . R A D E B A U G H , Assistant
RICHARD C . STEVENS, Assistant
PATRICIA A . W E L C H , Assistant




RESERVE

CLYDE H . FARNSWORTH, J R . , Director
ELLIOTT C . M C E N T E E , Associate
Director
D A V I D L . R O B I N S O N , Associate
Director
C . WILLIAM SCHLEICHER, J R . , Associate
Director
CHARLES W . B E N N E T T , Assistant
Director
JACK D E N N I S , J R . , Assistant
Director
E A R L G . H A M I L T O N , Assistant
Director

D A V I D L . S H A N N O N , Director
JOHN R . W E I S , Assistant
Director
CHARLES W . W O O D , Assistant
Director

OFFICE OF THE

THEODORE E. ALLISON, Staff Director

DEVELOPMENT

Director
Director
Director

AND

Adviser

All

Federal Reserve Bulletin • December 1987

Federal Open Market Committee
FEDERAL OPEN MARKET

COMMITTEE

MEMBERS
A L A N GREENSPAN,

Chairman

E . GERALD CORRIGAN,

W A Y N E D . ANGELL
E D W A R D G . BOEHNE
ROBERT H . BOYKIN

E D W A R D W . KELLEY, JR.
MARTHA R . SEGER
GARY H . STERN

H . ROBERT HELLER
M A N U E L H . JOHNSON
SILAS K E E H N

ALTERNATE
ROBERT P . BLACK
ROBERT T . PARRY

Vice Chairman

MEMBERS

ROBERT P . FORRESTAL
THOMAS M . TIMLEN

W . L E E HOSKINS

STAFF
DONALD L. KOHN, Secretary and Staff Adviser
NORMAND R . V . BERNARD, Assistant
ROSEMARY R . LONEY,

Deputy Assistant

MICHAEL BRADFIELD, General
ERNEST T . PATRIKIS,
E D W I N M . TRUMAN,

Secretary

Secretary

Counsel

Deputy General Counsel
Economist (International)

PETER FOUSEK, Associate
Economist
RICHARD W. LANG, Associate
Economist

PETER D . STERNLIGHT, Manager
SAM Y . CROSS, Manager for

FEDERAL ADVISORY

DAVID E. LINDSEY, Associate
Economist
MICHAEL J. PRELL, Associate
Economist
ARTHUR J. ROLNICK, Associate
Economist
HARVEY ROSENBLUM, Associate
Economist
KARL A . SCHELD, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
THOMAS D . SIMPSON, Associate
Economist

for Domestic Operations, System Open Market Account
Foreign Operations, System Open Market Account

COUNCIL

JOHN G . MEDLIN JR.,

President

JULIEN L . MCCALL, Vice President
JOHN F . MCGILLICUDDY, D E W A L T H . ANKENY, JR., AND F . PHILLIPS GILTNER,
JOHN P . L A WARE, First District
JOHN F. MCGILLICUDDY, Second District
SAMUEL A . MCCULLOUGH, Third District
JULIEN L . MCCALL, Fourth District
JOHN G . M E D L I N , JR., Fifth District
BENNETT A . BROWN, Sixth District




Directors

CHARLES T. FISHER, III, Seventh District
D O N A L D N. B R A N D I N , Eighth District
D E W A L T H . A N K E N Y , JR., Ninth District
F . PHILLIPS GILTNER, Tenth District
GERALD W . FRONTERHOUSE, Eleventh District
JOHN D. MANGELS, Twelfth District

HERBERT V . PROCHNOW, SECRETARY
WILLIAM J. KORSVIK, ASSOCIATE SECRETARY

A73

and Advisory Councils
CONSUMER

ADVISORY

COUNCIL

E D W A R D N . LANGE,
STEVEN W . H A M M , Colui
E D W I N B . BROOKS, JR., Richmond, Virginia
JONATHAN A . B R O W N , W a s h i n g t o n , D . C .
JUDITH N. B R O W N , Edina, Minnesota
MICHAEL S. CASSIDY, New York, New York
THERESA FAITH CUMMINGS, Springfield, Illinois
RICHARD B. DOBY, Denver, Colorado
RICHARD H . F I N K , Washington, D.C.

NEIL J. FOGARTY, Jersey City, N e w Jersey
STEPHEN GARDNER, Dallas, Texas
KENNETH A. H A L L , Picayune, Mississippi
ELENA G . HANGGI, Little Rock, Arkansas
ROBERT J. HOBBS, Boston, Massachusetts
RAMON E. JOHNSON, Salt Lake City, Utah
ROBERT W. JOHNSON, West Lafayette, Indiana

THRIFT INSTITUTIONS

ADVISORY

GERALD M. CZARNECKI, Mobile, Alabama
JOHN C. DICUS, Topeka, Kansas

RAY MARTIN, Los Angeles, California




JOHN

M.

KOLESAR,

Cleveland, Ohio

ALAN B. LERNER, Dallas, Texas
FRED S. MCCHESNEY, Chicago, Illinois
RICHARD L. D. MORSE, Manhattan, Kansas
HELEN E . NELSON, Mill Valley, California
SANDRA R. PARKER, Richmond, Virginia
JOSEPH L. PERKOWSKI, Centerville, Minnesota
BRENDA L. SCHNEIDER, Detroit, Michigan

JANE SHULL, Philadelphia, Pennsylvania

TED L. SPURLOCK, Dallas, Texas
MEL R. STILLER, Boston, Massachusetts
CHRISTOPHER J. SUMNER, Salt Lake City, Utah
E D W A R D J. WILLIAMS, Chicago, Illinois
MICHAEL ZOROYA, St. Louis, Missouri

COUNCIL

MICHAEL R . WISE,
JAMIE J. JACKSON,

BETTY GREGG, Phoenix, Arizona
THOMAS A. KINST, Hoffman Estates,

Seattle, Washington, Chairman
ibia, South Carolina, Vice Chairman

r, Colorado, President
., Texas, Vice President
DONALD F. MCCORMICK, Livingston, N e w Jersey
JANET

M.

PAVLISKA,

Arlington, Massachusetts

HERSCHEL ROSENTHAL, Miami, Florida

Illinois

WILLIAM G . SCHUETT, Milwaukee, Wisconsin
GARY L. SIRMON, Walla Walla, Washington

A74

Federal Reserve Board Publications
Copies are available from PUBLICATIONS SERVICES,
Mail Stop 138, Board of Governors of the Federal Reserve
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Board of Governors of the Federal Reserve System. Payment
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Stamps and coupons are not accepted.
THE

FEDERAL RESERVE SYSTEM—PURPOSES AND F U N C TIONS. 1984. 1 2 0 p p .
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A N N U A L REPORT: BUDGET REVIEW, 1 9 8 6 - 8 7 .
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BANKING AND MONETARY STATISTICS. 1 9 1 4 - 1 9 4 1 . (Reprint
of Part I only) 1976. 682 pp. $5.00.
BANKING

AND

MONETARY

STATISTICS.

1941-1970.

1976.

1,168 pp. $15.00.
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1974-78.
1981.
1982.
1983.
1984.
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1980. 305 pp. $10.00 per copy.
1982. 239 pp. $ 6.50 per copy.
1983. 266 pp. $ 7.50 per copy.
1984. 264 pp. $11.50 per copy.
1985. 254 pp. $12.50 per copy.
1986. 231 pp. $15.00 per copy.
1987. 288 pp. $15.00 per copy.

HISTORICAL CHART BOOK. I s s u e d a n n u a l l y in S e p t .

1980. 68 pp. $1.50 each;
10 or more to one address, $1.25 each.

INTRODUCTION TO FLOW OF F U N D S .

PUBLIC POLICY AND CAPITAL FORMATION.

1981. 3 2 6 p p .

$13.50 each.
Looseleaf; updated at least monthly. (Requests must be prepaid.)
Consumer and Community Affairs Handbook. $75.00 per
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Monetary Policy and Reserve Requirements Handbook.
$75.00 per year.
Securities Credit Transactions Handbook. $75.00 per year.
Federal Reserve Regulatory Service. 3 vols. (Contains all
three Handbooks plus substantial additional material.)
$200.00 per year.
Rates for subscribers outside the United States are as
follows and include additional air mail costs:
Federal Reserve Regulatory Service, $250.00 per year.
Each Handbook, $90.00 per year.

FEDERAL RESERVE REGULATORY SERVICE.

THE U . S . ECONOMY IN AN INTERDEPENDENT WORLD: A
MULTICOUNTRY M O D E L , May 1984. 590 pp. $14.50 each.
WELCOME TO THE FEDERAL RESERVE.
PROCESSING A N APPLICATION THROUGH THE FEDERAL R E SERVE SYSTEM. A u g u s t 1 9 8 5 . 3 0 p p .
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440 pp. $9.00 each.
FINANCIAL FUTURES AND OPTIONS IN THE U . S . ECONOMY.

December 1986. 264 pp. $10.00 each.

$1.25

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SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES OF CHARTS. Weekly. $21.00 per year or $.50 each in

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through April 20, 1983, with Supplements covering
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REGULATIONS OF THE BOARD OF GOVERNORS OF THE F E D ERAL RESERVE SYSTEM.
A N N U A L PERCENTAGE RATE TABLES (Truth in Lending—

Regulation Z) Vol. I (Regular Transactions). 1969. 100
pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each
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FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY

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HOLDING COMPANY MOVEMENT TO 1978:

A

COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to
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CONSUMER EDUCATION
PAMPHLETS
Short pamphlets suitable for classroom use. Multiple copies
are available without charge.

Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
Fair Credit Billing
Federal Reserve Glossary
A Guide to Business Credit and the Equal Credit Opportunity
Act
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
Organization and Advisory Committees

A75

PAMPHLETS FOR FINANCIAL
INSTITUTIONS
Short pamphlets on regulatory compliance, primarily suitable for banks, bank holding companies and creditors.

REVIEW OF THE TECHNIQUES A N D LITERATURE, b y

Kenneth Rogoff. October 1983. 15 pp.
133. RELATIONSHIPS AMONG EXCHANGE RATES, INTERVENTION, A N D INTEREST RATES: A N EMPIRICAL IN-

VESTIGATION, by Bonnie E. Loopesko. November
1983. Out of print.

Limit of 50 copies

134. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET
INTERVENTION: A REVIEW OF THE LITERATURE, b y

The Board of Directors' Opportunities in Community Reinvestment
The Board of Directors' Role in Consumer Law Compliance
Combined Construction/Permanent Loan Disclosure and
Regulation Z
Community Development Corporations and the Federal Reserve
Construction Loan Disclosures and Regulation Z
Finance Charges Under Regulation Z
How to Determine the Credit Needs of Your Community
Regulation Z: The Right of Rescission
The Right to Financial Privacy Act
Signature Rules in Community Property States: Regulation B
Signature Rules: Regulation B
Timing Requirements for Adverse Action Notices: Regulation B
What An Adverse Action Notice Must Contain: Regulation B
Understanding Prepaid Finance Charges: Regulation Z

Ralph W. Tryon. October 1983. 14 pp. Out of print.
135. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET
INTERVENTION: APPLICATIONS TO C A N A D A , GERMA-

NY, AND JAPAN, by Deborah J. Danker, Richard A.
Haas, Dale W. Henderson, Steven A. Symansky, and
Ralph W. Tryon. April 1985. 27 pp. Out of print.
136. T H E EFFECTS OF FISCAL POLICY ON THE U . S . ECONO-

MY, by Darrell Cohen and Peter B. Clark. January
1984. 16 pp. Out of print.
137. THE IMPLICATIONS FOR BANK MERGER POLICY OF
FINANCIAL DEREGULATION, INTERSTATE BANKING,

AND

FINANCIAL

SUPERMARKETS,

by

Stephen

A.

Rhoades. February 1984. Out of print.
138. ANTITRUST L A W S , JUSTICE DEPARTMENT GUIDELINES, A N D THE LIMITS OF CONCENTRATION IN LOCAL BANKING MARKETS, by James Burke. June 1984.

14 pp. Out of print.
139. SOME IMPLICATIONS OF FINANCIAL INNOVATIONS IN

THE UNITED STATES, by Thomas D. Simpson and

Patrick M. Parkinson. August 1984. 20 pp.
140. GEOGRAPHIC MARKET DELINEATION: A REVIEW OF

STAFF STUDIESSummaries

Bulletin

Only Printed in the

Studies and papers on economic and financial subjects that
are of general interest. Requests to obtain single copies of
the full text or to be added to the mailing list for the series
may be sent to Publications Services.

THE LITERATURE, by John D. Wolken. November
1984. 38 pp. Out of print.
141. A COMPARISON OF DIRECT DEPOSIT A N D CHECK PAYMENT COSTS, by William Dudley. November 1984.

15 pp. Out of print.
142. MERGERS
AND
BANKS, 1960-83,

ACQUISITIONS
A.

by Stephen
1984. 30 pp. Out of print.

Staff Studies 115-125 are out of print.

114. MULTIBANK HOLDING COMPANIES: RECENT EVIDENCE ON COMPETITION AND PERFORMANCE IN
BANKING MARKETS, by Timothy J. Curry and John T.

Rose. Jan. 1982. 9 pp.
126. DEFINITION A N D MEASUREMENT OF EXCHANGE MAR-

KET INTERVENTION, by Donald B. Adams and Dale
W. Henderson. August 1983. 5 pp. Out of print.
127. U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: JANUARY-MARCH 1975, by Margaret L .

Greene. August 1984. 16 pp. Out of print.
128. U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: SEPTEMBER 1977-DECEMBER 1 9 7 9 , b y M a r -

garet L. Greene. October 1984. 40 pp. Out of print.
129. U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: OCTOBER I98O-OCTOBER 1981, by Margaret

L. Greene. August 1984. 36 pp.
130. EFFECTS OF EXCHANGE RATE VARIABILITY ON INTERNATIONAL TRADE AND OTHER ECONOMIC VARIABLES: A REVIEW OF THE LITERATURE, by Victoria S .

Farrell with Dean A. DeRosa and T. Ashby McCown.
January 1984. Out of print.
131. CALCULATIONS OF PROFITABILITY FOR U . S . DOLLARDEUTSCHE MARK INTERVENTION, by Laurence R .

Jacobson. October 1983. 8 pp.
132. TIME-SERIES STUDIES OF THE RELATIONSHIP BETWEEN EXCHANGE RATES AND INTERVENTION: A




BY

COMMERCIAL

Rhoades. December

143. COMPLIANCE COSTS A N D CONSUMER BENEFITS OF
THE ELECTRONIC F U N D TRANSFER ACT: RECENT
SURVEY EVIDENCE, by Frederick J. Schroeder. April

1985. 23 pp. Out of print.
144. SCALE ECONOMIES IN COMPLIANCE COSTS FOR CONSUMER CREDIT REGULATIONS: THE TRUTH IN L E N D ING AND EQUAL CREDIT OPPORTUNITY L A W S , b y

Gregory E. Elliehausen and Robert D. Kurtz. May
1985. 10 pp.
145. SERVICE CHARGES AS A SOURCE OF BANK INCOME
AND THEIR IMPACT ON CONSUMERS, by Glenn B .

Canner and Robert D. Kurtz. August 1985. 31 pp. Out
of print.
146. THE ROLE OF THE PRIME RATE IN THE PRICING OF
BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84,

by Thomas F. Brady. November 1985. 25 pp.
147. REVISIONS IN THE MONETARY SERVICES (DIVISIA)
INDEXES OF THE MONETARY AGGREGATES, by Helen

T. Farr and Deborah Johnson. December 1985. 42 pp.
148. THE MACROECONOMIC AND SECTORAL EFFECTS OF
THE ECONOMIC RECOVERY TAX ACT: SOME SIMULA-

TION RESULTS, by Flint Brayton and Peter B. Clark.
December 1985. 17 pp.
149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS
IN BANKING BEFORE AND AFTER ACQUISITION, b y

Stephen A. Rhoades. April 1986. 32 pp.
150. STATISTICAL COST ACCOUNTING MODELS IN BANKING: A REEXAMINATION A N D AN APPLICATION, b y

John T. Rose and John D. Wolken. May 1986. 13 pp.

A76

151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT
PRICING FROM 1 9 8 3 THROUGH 1 9 8 5 , b y P a t r i c k I.

Mahoney, Alice P. White, Paul F. O'Brien, and Mary
M. McLaughlin. January 1987. 30 pp.
152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A
REVIEW OF THE LITERATURE, by Mark J. War-

shawsky. April 1987. 18 pp.
153.

STOCK MARKET VOLATILITY, by Carolyn D. Davis
and Alice P. White. September 1987. 14 pp.

154. T H E EFFECTS ON CONSUMERS A N D CREDITORS OF
PROPOSED CEILINGS ON CREDIT C A R D INTEREST

155.

RATES, by Glenn B. Canner and James T. Fergus.
October 1987. 783 pp.
T H E F U N D I N G OF PRIVATE PENSION PLANS, by Mark
J. Warshawsky. November 1987. 25 pp.

REPRINTS

OF BULLETIN

ARTICLES

Most of the articles reprinted do not exceed 12 pages.
Limit of 10 copies
Foreign Experience with Targets for Money Growth. 10/83.
Intervention in Foreign Exchange Markets: A Summary of
Ten Staff Studies. 11/83.




A Financial Perspective on Agriculture. 1/84.
Survey of Consumer Finances, 1983. 9/84.
Bank Lending to Developing Countries. 10/84.
Survey of Consumer Finances, 1983: A Second Report.
12/84.
Union Settlements and Aggregate Wage Behavior in the
1980s. 12/84.
The Thrift Industry in Transition. 3/85.
A Revision of the Index of Industrial Production. 7/85.
Financial Innovation and Deregulation in Foreign Industrial
Countries. 10/85.
Recent Developments in the Bankers Acceptance Market.
1/86.
The Use of Cash and Transaction Accounts by American
Families. 2/86.
Financial Characteristics of High-Income Families. 3/86.
Prices, Profit Margins, and Exchange Rates. 6/86.
Agricultural Banks under Stress. 7/86.
Foreign Lending by Banks: A Guide to International and
U.S. Statistics. 10/86.
Recent Developments in Corporate Finance. 11/86.
U.S. International Transactions in 1986. 5/87.
Measuring the Foreign-Exchange Value of the Dollar. 6/87.
Changes in Consumer Installment Debt: Evidence from the
1983 and 1986 Surveys of Consumer Finances. 10/87.

All

ANTICIPATED

SCHEDULE

OF RELEASE DATES FOR PERIODIC RELEASES—BOARD

OF THE FEDERAL RESERVE

SYSTEM1

(Payment must accompany

Weekly Releases

Annual
rate

OF

GOVERNORS

requests)

jroximate
release days

Date or period
to which data refer

• Aggregate Reserves of Depository Institutions and
the Monetary Base. H.3 (502) [1.20]

$12.00

Thursday

Week ended previous
Wednesday

• Actions of the Board: Applications and Reports
Received. H.2 (501)

$21.00

Friday

Week ended previous Saturday

• Assets and Liabilities of Insured Domestically
Chartered and Foreign Related Banking
Institutions. H.8 (510) [1.25]

$12.00

Monday

Wednesday, 3 weeks earlier

• Changes in State Member Banks. K.3 (615)

$12.00

Tuesday

Week ended previous Saturday

• Factors Affecting Reserves of Depository
Institutions and Condition Statement of Federal
Reserve Banks. H.4.1 (503) [1.11]

$12.00

Thursday

Week ended previous
Wednesday

• Foreign Exchange Rates. H.10 (512) [3.28]

$12.00

Monday

Week ended previous Friday

• Money Stock, Liquid Assets, and Debt Measures.
H.6 (508) [1.21]

$21.00

Thursday

Week ended Monday of
previous week

• Selected Borrowings in Immediately Available
Funds of Large Member Banks. H.5 (507) [1.13]

$12.00

Wednesday

Week ended Thursday of
previous week

• Selected Interest Rates. H. 15 (519) [1.35]

$12.00

Monday

Week ended previous Saturday

• Weekly Consolidated Condition Report of Large
Commercial Banks, and Domestic Subsidiaries.
H.4.2 (504) [1.26, 1.28, 1.29, 1.30]

$12.00

Friday

Wednesday, 1 week earlier

Monthly Releases
• Capacity Utilization: Manufacturing, Mining,
Utilities and Industrial Materials. G.3 (402) [2.12]

3.00

Midmonth

Previous month

• Changes in Status of Banks and Branches. G.4.5
(404)

9.00

1st of month

Previous month

• Consumer Installment Credit. G.19 (421) [1.55, 1.56]

3.00

5th working day of
month

2nd month previous

• Debits and Deposit Turnover at Commercial Banks.
G.6 (406) [1.22]

3.00

12th of month

Previous month

• Finance Companies. G.20 (422) [1.51, 1.52]

$ 3.00

5th working day of
month

2nd month previous

• Foreign Exchange Rates. G.5 (405) [3.28]

$3.00

1st of month

Previous month

• Industrial Production. G.12.3 (414) [2.13]

$ 7.00

Midmonth

Previous month

• Loans and Securities at all Commercial Banks. G.7
(407) [1.23]

$ 3.00

3rd week of month

Previous month

• Major Nondeposit Funds of Commercial Banks.
G.10 (411) [1.24]

$ 3.00

3rd week of month

Previous month

• Monthly Report of Assets and Liabilities of
International Banking Facilities. G. 14 (416)

$ 3.00

20th of month

Wednesday, 2 weeks earlier

1st of month

Previous month

• Research Library— Recent Acquisitions. G.15 (417)

Free of
charge

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 respective BULLETIN tables that report the data are designated in brackets.




A78

Monthly Releases—Continued
• Selected Interest Rates. G.13 (415) [1.35]

Annual
rate

proximate
release days

Date or period
to which data refer

$ 3.00

3rd working day of
month

Previous month

• Agricultural Finance Databook. E.15 (125)

$4.00

End of March,
June, September,
and December

January, April, July, and
October

• Country Exposure Lending Survey. E.16 (126)

$4.00

January, April,
July, and
October

Previous 3 months

• Domestic Offices, Commercial Bank Assets and
Liabilities Consolidated Report of Condition.
E.3.4 (113) [1.26, 1.28]

$3.00

March, June,
September, and
December

Previous 6 months

• Flow of Funds: Seasonally Adjusted and
Unadjusted. Z.l (780) [1.58, 1.59]

$7.00

23rd of February,
May, August,
and November

Previous quarter

• Flow of Funds Summary Statistics Z.l. (788) [1.57,
1.58]

$2.00

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)

$2.00

15th of March,
June, September,
and December

Previous quarter

• Survey of Terms of Bank Lending. E.2 (111) [1.34]

$2.00

Midmonth of
March, June,
September, and
December

February, May, August, and
November

• List of OTC Margin Stocks. E.7 (117)

$4.00

January, April,
July, and
October

February, May, August, and
November

$2.00

October and April

Previous year

$ .50

February

End of previous June

Quarterly Releases

Semiannual Releases
• Balance Sheets of the U.S. Economy. C.9 (108)

Annual Releases
• Aggregate Summaries of Annual Surveys of
Securities Credit Extension. C.2 (101)




A79

Index to Statistical Tables
References are to pages A3-A68 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 19, 20
Assets and liabilities (See also Foreigners)
Banks, by classes, 18-20
Domestic finance companies, 37
Federal Reserve Banks, 10
Financial institutions, 26
Foreign banks, U.S. branches and agencies, 21
Nonfinancial corporations, 36
Automobiles
Consumer installment credit, 40, 41
Production, 47, 48
BANKERS acceptances, 9, 23, 24
Bankers balances, 18-20 (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 34
Rates, 24
Branch banks, 21, 55
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 36
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 18
Federal Reserve Banks, 10
Central banks, discount rates, 67
Certificates of deposit, 24
Commercial and industrial loans
Commercial banks, 16, 19
Weekly reporting banks, 19-21
Commercial banks
Assets and liabilities, 18-20
Commercial and industrial loans, 16, 18, 19, 20, 21
Consumer loans held, by type, and terms, 40, 41
Loans sold outright, 19
Nondeposit funds, 17
Real estate mortgages held, by holder and property, 39
Time and savings deposits, 3
Commercial paper, 23, 24, 37
Condition statements (See Assets and liabilities)
Construction, 44, 49,
Consumer installment credit, 40, 41
Consumer prices, 44, 50
Consumption expenditures, 51, 52
Corporations
Nonfinancial, assets and liabilities, 36
Profits and their distribution, 35
Security issues, 34, 65
Cost of living (See Consumer prices)
Credit unions, 26, 40. (See also Thrift institutions)
Currency and coin, 18
Currency in circulation, 4, 13
Customer credit, stock market, 25
DEBITS to deposit accounts, 15
Debt (See specific types of debt or securities)
Demand deposits
Banks, by classes, 18-21




Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 22
Turnover, 15
Depository institutions
Reserve requirements, 8
Reserves and related items, 3, 4, 5, 12
Deposits (See also specific types)
Banks, by classes, 3, 18-20, 21
Federal Reserve Banks, 4, 10
Turnover, 15
Discount rates at Reserve Banks and at foreign central
banks and foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
EMPLOYMENT, 45
Eurodollars, 24
FARM mortgage loans, 39
Federal agency obligations, 4, 9, 10, 11, 31, 32
Federal credit agencies, 33
Federal finance
Debt subject to statutory limitation, and types and
ownership of gross debt, 30
Receipts and outlays, 28, 29
Treasury financing of surplus, or deficit, 28
Treasury operating balance, 28
Federal Financing Bank, 28, 33
Federal funds, 6, 17, 19, 20, 21, 24, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 38, 39
Federal Housing Administration, 33, 38, 39
Federal Land Banks, 39
Federal National Mortgage Association, 33, 38, 39
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 4, 10, 11, 30
Federal Reserve credit, 4, 5, 10, 11
Federal Reserve notes, 10
Federal Savings and Loan Insurance Corporation insured
institutions, 26
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 37
Business credit, 37
Loans, 40, 41
Paper, 23, 24
Financial institutions
Loans to, 19, 20, 21
Selected assets and liabilities, 26
Float, 4
Flow of funds, 42, 43
Foreign banks, assets and liabilities of U.S. branches and
agencies, 21
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4, 10, 19, 20
Foreign exchange rates, 68
Foreign trade, 54
Foreigners
Claims on, 55, 57, 60, 61, 62, 64
Liabilities to, 20, 54, 55, 57, 58, 63, 65, 66

A80

GOLD
Certificate account, 10
Stock, 4, 54
Government National Mortgage Association, 33, 38, 39
Gross national product, 51
HOUSING, new and existing units, 49
INCOME, personal and national, 44, 51, 52
Industrial production, 44, 47
Installment loans, 40, 41
Insurance companies, 26, 30, 39
Interest rates
Bonds, 24
Consumer installment credit, 41
Federal Reserve Banks, 7
Foreign central banks and foreign countries, 67
Money and capital markets, 24
Mortgages, 38
Prime rate, 23
International capital transactions of United States, 53-67
International organizations, 57, 58, 60, 63, 64
Inventories, 51
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 18, 19, 20, 21, 26
Commercial banks, 3, 16, 18-20, 39
Federal Reserve Banks, 10, 11
Financial institutions, 26, 39
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 18-20
Commercial banks, 3, 16, 18-20
Federal Reserve Banks, 4, 5, 7, 10, 11
Financial institutions, 26, 39
Insured or guaranteed by United States, 38, 39
MANUFACTURING
Capacity utilization, 46
Production, 46, 48
Margin requirements, 25
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 6
Reserve requirements, 8
Mining production, 48
Mobile homes shipped, 49
Monetary and credit aggregates, 3, 12
Money and capital market rates, 24
Money stock measures and components, 3, 13
Mortgages (See Real estate loans)
Mutual funds, 35
Mutual savings banks, (See Thrift institutions)
NATIONAL defense outlays, 29
National income, 51
OPEN market transactions, 9
PERSONAL income, 52
Prices
Consumer and producer, 44, 50
Stock market, 25
Prime rate, 23
Producer prices, 44, 50
Production, 44, 47
Profits, corporate, 35
REAL estate loans
Banks, by classes, 16, 19, 20, 39




Real estate loans—Continued
Financial institutions, 26
Terms, yields, and activity, 38
Type of holder and property mortgaged, 39
Repurchase agreements, 6, 17, 19, 20, 21
Reserve requirements, 8
Reserves
Commercial banks, 18
Depository institutions, 3, 4, 5, 12
Federal Reserve Banks, 10
U.S. reserve assets, 54
Residential mortgage loans, 38
Retail credit and retail sales, 40, 41, 44
SAVING
Flow of funds, 42, 43
National income accounts, 51
Savings and loan associations, 26, 39, 40, 42. (See also
Thrift institutions)
Savings banks, 26, 39, 40
Savings deposits (See Time and savings deposits)
Securities (See specific types)
Federal and federally sponsored credit agencies, 33
Foreign transactions, 65
New issues, 34
Prices, 25
Special drawing rights, 4, 10, 53, 54
State and local governments
Deposits, 19, 20
Holdings of U.S. government securities, 30
New security issues, 34
Ownership of securities issued by, 19, 20, 26
Rates on securities, 24
Stock market, selected statistics, 25
Stocks (See also Securities)
New issues, 34
Prices, 25
Student Loan Marketing Association, 33
TAX receipts, federal, 29
Thrift institutions, 3. (See also Credit unions and Savings
and loan associations)
Time and savings deposits, 3, 13, 17, 18, 19, 20, 21
Trade, foreign, 54
Treasury cash, Treasury currency, 4
Treasury deposits, 4, 10, 28
Treasury operating balance, 28
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 18, 19, 20
Treasury deposits at Reserve Banks, 4, 10, 28
U.S. government securities
Bank holdings, 18-20, 21, 30
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 4, 10, 11, 30
Foreign and international holdings and transactions, 10,
30, 66
Open market transactions, 9
Outstanding, by type and holder, 26, 30
Rates, 24
U.S. international transactions, 53-67
Utilities, production, 48
VETERANS Administration, 38, 39
WEEKLY reporting banks, 19-21
Wholesale (producer) prices, 44, 50
YIELDS (See Interest rates)

A81

Index to Volume 73
GUIDE TO PAGE REFERENCES
Issue

January...
February ..
March
April
May
June

IN MONTHLY

Text

1-78
79-178
179-238
239-320
321-410
411-522

ISSUES

"A" pages

Total
1-82
1-82
1-80
1-76
1-86
1-90

Index to
tables
83-84
83-84
81-82
77-78
87-88
91-92

The "A" pages consist of statistical tables and reference
information.

ADAMS, Donald B., appointed Assistant Director,
Division of International Finance
29
Adjustable-rate mortgages
898
Agriculture
Amortization of losses on agricultural loans
917
Department of
530-31
Farm bank profitability
537, 541
Seasonal adjustment program, extension
210
Statement on proposal to establish secondary market
for farm mortgage loans
857
Troubled farm debt, article
523
Anti-Drug Abuse Act of 1986
560, 649
American Association of Retired Persons
257
American Bankers Association
265
Angell, Wayne D.
Statement on effectiveness of Advisory councils
913
Statement on Expedited Funds Availability Act,
H.R. 28
205
Statement on Fair Deposit Availability Act of 1987,
S. 344
279
Statement on Federal Reserve System's expenses and
budget
563
Statement on proposal to establish secondary market
for farm mortgage loans
857
Annual Statistical Digest, 1986, publication
916
Articles
Anguish of central banking
687
Basic banking
255
Changes in use of transaction accounts
179
Consumer installment debt, surveys of consumer
finances
761
Daylight overdrafts and payments system risk
839
Foreign exchange operations
14, 330, 779
Foreign exchange value of dollar
411
Housing and mortgage markets, post 1982
893
International transactions in 1986
321
Interstate banking developments
79
Monetary policy reports to Congress (See Statements
to Congress)
MPS quarterly econometric model
93
Profitability of U.S.-chartered insured commercial
banks
537
Proposed ceilings on credit card interest rates
1
Troubled farm debt
523




Issue

July
August
September ..
October
November ..
December ..

Text

523-632
633-685
687-760
761-838
839-892
893-950

"A" pages

Total
1-88
1-80
1-82
1-82
1-82
1-94

Index to
tables
89-90
81-82
83-84
83-84
83-84
79-80

Statistical tables are indexed separately (see p. A79 of this
issue).

Association of Community Organizations for Reform
Now (ACORN)
257
Avery, Robert B., articles
179, 761
BANK Bribery Act, final guidelines
Bank holding companies (For orders issued to individual
companies under the Bank Holding Company Act,
see Bank Holding Company Act of 1956)
List
Real estate investment activity proposal
115,
Responsibility to act as sources of financial and
managerial strength to their subsidiary banks
Risk-based capital framework, proposal
Underwriting and dealing in securities, hearing
Bank Holding Company Act of 1956
Orders issued under
ABC Holding Company
ABN Company, Inc
A.B.N.-Stichting, Amsterdam, The Netherlands ..
Adairsville Bancshares, Inc
Alabama National Bancorporation
Alaska Mutual Bancorporation
Alex Brown Financial Group
Algemene Bank Nederland N.V., Amsterdam, The
Netherlands
Allegheny Valley Bancorp, Inc
ALLIANCE FINANCIAL CORPORATION
Allied Bankshares, Inc
Allied Irish Banks, P.L.C., Dublin, Ireland
Alpha Financial Corporation
ALTA VISTA BANCSHARES, INC
Altenburg Bancorp, Inc
Alvarado Bankshares, Inc
AmBank Holding Company of Colorado
AMCORE Financial, Inc
American Bancorp, Inc
American Bancorporation
American Capital Corporation
American Fletcher Corporation
American National Corporation (Chicago,
Illinois)
128,
American National Corporation (Mountain View,
California)
Americorp

919

915
297
441
296
210
70
40
40
754
71
921
683
40
833
625
169
836
516
230
887
754
213
519
75
754
71
124
230
66
679

All

Federal Reserve Bulletin • December 1987

Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
AmeriTrust Corporation
72
Amity Bancorp, Inc
71
Ammex Holding Company
683
Amoskeag Bank Shares, Inc
516, 519
AmSouth Bancorporation
351, 948
Amsterdam-Rotterdam Bank N.V., Amsterdam,
The Netherlands
726
AmTex Bancshares, Inc
169
Andover Bancorp, Inc
888
Arcadia Financial Corporation
516
Arkansas Union Bankshares, Inc
679
ASB Bancshares, Inc
71
Asia Bancshares, Inc
754
Associated Banc-Corp
353
Atico Financial Corporation
717
Atlanta National Corporation
230
Avoca Financial Services, Inc
71
Badger Bank Services, Inc
945
Baker Boyer Bancorp
42
Ballard Kevil Bancorp, Inc
169
Baltimore Bancorp
801
Banamex Holding Company
683
Banc Alabama, Inc
679
Banco Harlan, Inc
71
Banco Nacional de Mexico, S.N.C., Mexico City,
Mexico
683
Banc One Corporation . . . 124, 230, 234, 317, 389, 520
Bancorp Hawaii, Inc
888
Bancorp of Mississippi
71
Banc Services Corp
230
Bancshares 2000, Inc
833
BankAmerica Corporation
361,727
Bank Corporation of Georgia
169
BankEast Corporation
230
Bankers' Bancorporation of Missouri, Inc
169
230
Bankers' Financial Services Corporation
Bankers Trust New York Corporation . 138, 234, 361,
473, 731
Bankmont Financial Corp
235
Bank of Granite Corporation
516
Bank of Jackson Employee Profit Sharing Plan and
Money Purchase Pension Plan
833
Bank of Montreal, Montreal, Canada
235
Bank of Montreal, Quebec, Canada
890
Bank of New England Corporation
373, 520, 628
Bank of New Hampshire Corporation
517, 888
Bank of New York
235
Bank of Scotland, Edinburgh, Scotland
174
Bank Shares Incorporated
230
Bank South Corporation
169, 945, 948
Banks of Iowa, Inc
597
Banks of Mid-America, Inc
833
Banterra Corp
888
Barclays-AmericanCorporation
234
Barclays Bank PLC, London, England
234
Barclays PLC, London, England
234
Barclays USA, Inc
234
Barclays U.S. Holdings, Inc
234
Barnett Banks of Florida, Inc
175
Baron II Bancshares, Inc
754
Bay Banks, Inc
754
Bayerische Vereinsbank AG, Munich, Federal
Republic of Germany
155
B Bank, Inc
516
Belfast Holding Company
230
Bellbrook Bancorp, Inc
754
Belle Fourche Bancshares, Inc
625
Bellevue Capital Company
305
Benson Financial Corporation
376
Benton Bancorp, Inc
888
Blissfield Bank Corporation
833




Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
BMC Bancshares, Inc
389
BMR Bancorp, Inc. (Atlanta, Georgia)
230
BMR Bancorp, Inc. (Decatur, Georgia)
175
Boatmen's Bancshares, Inc
754
Bonner Springs Bancshares, Inc
517
Boynton Holding Company
169
Bradford Bancshares, Inc
945
Branch Corporation
679
Brannen Banks of Florida, Inc
169
Brazos Bancshares, Inc
754
Broadway Bancshares, Inc
169
Brown Deer Bank Profit Sharing Plan
754
Buffalo Bancshares, Inc
679
Butler Point, Inc
679
Camino Real Bancshares, Inc
754
Cando Holding Company, Inc
679
Canton Bancshares, Inc
230
CapitalBanc Corporation
754
Capital Bancorp, Ltd
945
Capital City Bank Group, Inc
456
Cardinal Bancorp, Inc
230
Cattlemen's Financial Services, Inc
315
CB Bancshares, Inc
679
CB&T Bancshares, Inc
315
CB&T Financial Corp
170
CBE, Inc
679
CCB Financial Corporation
679
CCSB Corporation
315
CeeVeeTee Limited Partnership
888
Centerre Bancorporation
365
Central Bancompany
43
Central Bancshares of the South, Inc
679
Central Bancshares, Inc
170
Central Bank Corporation
679
Central Illinois Community Bancorp, Inc
170
Central Wisconsin Bankshares, Inc
71, 315, 833
Century Bancshares, Inc
389
Cenvest, Inc
754
CG Bancshares, Inc
389
Chambanco, Inc
71
Charter Banc Group, Inc
71
Charter Bank Group, Inc
890
Charter 17 Bancorp, Inc
170
Chase Manhattan Corporation 361, 367, 391, 520, 607,
729, 731, 947
Cheatham State Bank ESOP
389
Chemical Financial Corporation
679
Chemical New York Corporation .. 174, 362, 378, 609,
616, 731
517
Cherokee Bancorp, Inc
Cherry Bancorporation, Inc
625
Cherry Valley Bancshares, Inc
170
Chesapeake Bank Corporation
625
Cheshire Financial Corporation
236
Citicorp
75, 157, 220, 362, 473, 618, 669, 731
Citizens and Southern Corporation
44, 520
Citizens and Southern Florida Corporation
44
Citizens and Southern Georgia Corporation
520
Citizens Bancorp Investment, Inc
170
Citizens Bancshares of Eldon, Inc
170
Citizens Bancshares of Marysville, Inc
230
CITIZENS BANKING CORPORATION
517
Citizens' Capital Corporation
679
Citizens Community Bankshares, Inc
71
Citizens Corporation
679
Citizens Equity Corporation
754
Citizens Financial Corp
230
Citizens Financial Group, Inc
235
Citizens First Bancorp, Inc
625
Citizens Investments, Inc
833
Citizens Southern Bancshares, Inc
170

Index to Volume 73

Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
Citizens State Bank Employee Stock Ownership
Trust
625
City Bancorp of Bloomington-Normal, Inc
71
City Holding Company
71
City National Bancshares, Inc
625
CNB Bancorp, Inc
598
CNB Bancshares, Inc. (Evansville, Indiana)
517, 679
CNB Bancshares, Inc. (Whitehouse, Texas)
170
CNB Financial Corporation
625
CNB Inc
230
Codorus Valley Bancorp, Inc
230
Collegiate Peaks Bancorporation, Inc
625
Colonial BancGroup, Inc
389, 517
Colonial Bancshares, Inc
945
Comerica Incorporated
599
CommerceBancorp
754
Commerce Bancorp, Inc
71
Commerce Bancshares, Inc
315
Commerce Corporation
71
Commerce Union Corporation
315
Commercial Bancorp, Inc
833
Commercial Bancorporation of Colorado
170
Commercial BancShares, Incorporated
945
Commercial Bank Investment Company
170
Commonwealth Bancshares Corporation 158, 679, 754
Community Bancorp, Inc
389
Community Bancshares, Inc. (Blountsville,
Alabama)
231
Community Bancshares, Inc. (Chillicothe,
Missouri)
231
Community Bancshares of Chanute, Inc
833
Community Bank System, Inc
888
Community First Minnesota Bankshares, Inc
803
Community First North Dakota Bankshares, Inc. . 804
Community First South Dakota Bankshares, Inc. . 805
Community Group, Inc
72, 389
Connecticut Bancorp, Inc
615
Conover Bancorporation
315
Continental Illinois Corporation
46, 362, 628
Cooper Lake Financial Corporation
231
CoreStates Financial Corp
754
Cornerstone Bancshares, Inc
231
Cornerstone Financial Corporation
834
Cosmopolitan Financial Services, Inc
679
Coteau Hills Company
679
Country Bancorp, Inc
888
County Bancorporation, Inc
170
County Financial Corporation
947
Credit and Commerce American Holdings, N.V.,
Curacao, Netherlands Antilles
755
Credit and Commerce American Investment, B.V.,
Amsterdam, The Netherlands
755
Credit Suisse, Zurich, Switzerland
160
Crescent Holding Company
457
CREST BANCORP INC
72
Crews Banking Corporation
755
Crown Bancshares II, Inc
834
Damariscotta Bankshares, Inc
389
Dawson Springs Bancorp, Inc
72
Dean Financial Services, Inc
945
Delaware National Bankshares Corp
628
Deposit Guaranty Corporation
317
Devon Holding Company, Inc
834
Dime Financial Corp
625
Dinsdale Brothers, Inc
231
DNB Financial
834
Dominion Bankshares Corporation . 72, 76, 231, 517,
837
Draper Holding Company, Inc
628
DS Bancor, Inc
680
D.S.B. Bankshares, Inc
680




A83

Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
DU PAGE COUNTY BANCORP, INC
517
DuPage Financial Corporation
170
Eagle Fidelity, Inc
680
Eastman National Bankshares, Inc
317
E.C.S.B. Holding Company, Inc
680
Elcho Bancorporation, Inc
888
Elhnwood Bankshares, Inc
683
El Paso Financial Corporation
70
EMF Corporation
755
Enots, Ltd., George Town, Grand Cayman
517
Equitable BankShares, Inc
72
Escrow Corporation of America, Inc
680
Exchange International Corporation
888
F&M Bancorporation, Inc
680, 834
F&M Bank Holding Company of Valley City, Inc... 72
F&M Financial Services Corporation
170
F&M National Corporation
315
Fairfax Bancshares, Inc
923
Fairfield Financial Corporation
231
Faith Bank Holding Company
170
Family Bancorp
946
Farmers and Merchants Bancorp, Inc
235
Farmers Bancshares, Inc
946
Farmers Bancorp, Inc. of Marion, Kentucky
755
Farmers Capital Bank Corporation
517
Farmers Enterprises, Inc
680
Fayette County Bancshares, Inc
517
FCB Bancshares, Inc
888
FCB Corporation
170
FCNB Corp
72
FGB Acquisition Company
756
Fidelcor, Inc
163, 235, 683, 888
755
Fillmore County Bancshares, Inc
FIN, Inc
680
Financial Bancshares, Inc. (St. Louis, Missouri).. 72
Financial Bancshares, Inc. (Topeka, Kansas)
171
Financial Corporation of Central Illinois, Inc
389
Financial Institutions, Inc
231
Financial National Bancshares, Co
76
Financial Services Bancorp, Inc
517
Financial Trust Corp
888
Fir-Ban, Inc
888
First Albany Bancshares, Inc
680
First American Bankshares, Inc. (Fort Atkinson,
Wisconsin)
72
First American Bankshares, Inc. (Washington,
D.C.)
755
First American Corporation (Nashville, Tennessee) 390
First American Corporation (Washington, D.C.) .. 755
First Apple River Corporation
231
First Azle Bancshares, Inc
625
First Bancorp, Inc. (Minneapolis, Minnesota)
231
First Bancorp, Inc. (Oneida, Tennessee)
518
First Bancorp, Inc. (Yates City, Illinois)
390
First Bancorp of Louisiana, Inc
680
First Bancorp of Russell County, Inc
171
First Bancshares of Valley City, Inc
127
FIRSTBANK CORP
834
First Bank System, Inc
947
First Capital Corporation
317, 755
First Caprock Bancshares, Inc
625
First Centre Bancshares, Inc
390
First Chicago Corporation . . . . 128, 231, 362, 600, 830
First Citizens Banc Corp
625
First Citizens BanStock, Inc
755
First Citizens-Crenshaw Bancshares, Inc
390
First Citizens of Paris, Inc
72
First City Bancshares, Incorporated of Springfield,
Missouri
72
First Coleman Bancshares, Inc
680
First Colonial Bankshares Corporation
890

All

Federal Reserve Bulletin • December 1987

Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
First Columbus Financial Corporation
171
First Commerce Corporation
317
First Commercial Corporation
947
First Community Bankshares
72
First Community Corporation
625
First Community Shares, Inc
171
First City Corporation Employee Stock Ownership
Trust
625
First Dodge City Bancshares, Inc
680
First Dolton Corp
390
First Empire State Corporation
718
First Essex Bancorp, Inc
354
First Financial Services, Inc
834
First Gilmer Bankshares, Inc
626
First Hawaiian, Inc
235
First Highland Corp
834
First Holding Company of Cavalier, Inc
390
First Holding Company of Park River, Inc
390
First Illini Bancorp, Inc
72
First Illinois Bancorp, Inc
888
First Illinois Corporation
391
First Indiana Bancorp
72
First Interstate Bancorp
70, 362, 881, 928
171, 626
First Interstate Corporation of Wisconsin
First Jersey National Corporation
626
First Kentucky National Corporation
49
First Maryland Bancorp
836
First Merchants Bancorp, Inc
231
First Michigan Bank Corporation
171
First Mid-Illinois Bancshares, Inc
171
First Midwest Bancorp, Inc
459
First Midwest Corporation of Delaware
834
FirstMorrill Co
755
First National Agency at St. James, Inc
236
First National Bancorp
680, 946
First National Bancorp, Inc
231
First National Bank of Sauk Centre Profit Sharing
Trust No. 1
946
First National Bankshares Corporation
232
First National Bankshares, Inc
680
First National Corporation
680
First National Financial Corporation
317
First National Holding Company, Inc
946
First NH Banks, Inc
72, 947
FIRST NORTHBROOK BANCORP, INC
171
First Northwest Bancshares, Inc
755
First of America Bancorporation-Illinois, Inc.
(Kalamazoo, Michigan)
175, 629
First of America Bancorporation-Illinois, Inc.
(Libertyville, Illinois)
684
First of America Bank Corporation 72, 175, 315, 517,
629, 684, 946
First Ohio Bancshares, Inc
171
First Park County Bancshares, Inc
888
First Paxton Bancorp, Inc
946
First Pennsylvania Corporation
391
First Peoples Financial Corporation
232
First Peterborough Bank Corp
680
First Petersburg Bancshares, Inc
73
1st Source Corporation
755
First South Bancshares, Inc
755
First Southeast Banking Corp
390
First State Bancorporation, Inc
680
First State Bancshares, Inc
316
First State Banking Corporation
836
First State Bank of Miller Profit Sharing Trust
No. 1
518
1st State Corporation
171
First State Fremont, Inc
834
First Tennessee National Corporation
461
First Union Bancorporation, Inc
834




Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
First Union Corporation
223, 390, 518, 626, 683
First United Bancorporation
834
First United Bancshares, Inc
70, 162
First Valley Corporation
73
First Virginia Banks, Inc
518, 626, 755
First Wachovia Corporation
626
First Wisconsin Corporation
518, 680, 834
FMB Banking Corporation
73
FMB Bankshares, Inc
623
FNB Bancshares, Inc
681
FNBCorp
232,317
F.N.B. Corporation, (Hermitage,
Pennsylvania)
626, 683
FNB Corporation, (Holly Hill,
South Carolina)
518
FNB Financial Corporation
834
FNB Rochester Corp
948
Forsyth Bancshares, Inc
834
Fort Wayne National Corporation
73, 518
Founders Bancorp, Inc
316
Fourth Financial Corporation
73
Frandsen Financial Corporation
232
Franklin Capital Corporation
171
Front Range Capital Corporation
390
Galva Bancshares, Inc
518
Garden Banc Shares, Inc
888
Gary-Wheaton Corporation
73
Genbeach Company, Inc
806
General Educational Fund, Inc
946
Gideon Financial Corporation
518
Goliad Bancshares, Inc
232
Granite State Bankshares, Inc
681
Gratiot Bancshares, Inc
834
GreatBanc, Inc. (Aurora, Illinois)
681
GreatBanc, Inc. (Itasca, Illinois)
171
Great Bay Bankshares, Inc
888
Greater Chicago Financial Corp
681
Greater Southwest Bancshares, Inc
73
Green County Bancshares, Inc
888
Greenfield Bancshares, Inc
755
Greensburg Deposit Bancorp, Inc
390
Greenville Bancshares Corporation
626
Greenwood County Financial Services, Inc
73
Grenada Sunburst System Corporation
73
Groesbeck Bancshares, Inc
834
Gulf/Bay Financial Corporation
626
Gulf & Southern Financial Corporation
626
Gwinnett Financial Corporation
946
Hancock Bancorp, Inc
834
Harbor Country Banking Corporation
73
Hardwick Holding Company
835
Harris Bankcorp, Inc
235
Hartford National Corporation
235, 661, 720, 753
Hartland Bancshares, Inc
316
Hasten Bancorp
232
Hawaii National Bancshares, Inc
232, 316
Heights Bancshares, Inc
390
Hemet Bancorp
171
Henrietta Bancshares, Inc
835
Heritage Bancorp Co
518
Hi-Bancorp, Inc
73
Hibernia Corporation
317
Highlands Bankshares, Inc
232
Hoff Investment Corporation
888
681
Hometown Bancorporation, Inc
Honat Bancorp, Inc
681
Hong Kong and Shanghai Banking Corporation,
Hong Kong
362, 808, 890
Hopedale Investment Company
171
Houghton Financial, Inc
73, 870
Houston Bancorporation, Inc
723

Index to Volume 73

Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
HSBC Holdings B.V. Amsterdam, The
Netherlands
Hub Financial Corporation
Huntington Bancshares Incorporated
Huntington Bancshares of Indiana, Inc
HUNTLEY BANCSHARES, INC
ICNB Financial Corporation
Illini Community Bancorp, Inc
Illinois Marine Bancorp, Inc
Illinois Regional Bancorp, Inc
Imperial Bancorp
Independence Bancorp, Inc
Independent American Financial Corporation
Independent Banks of Virginia, Inc
Indiana United Bancorp
International Bancorporation, Inc
International City Bancorp, Inc
Iowa National Bankshares, Corp
Iron and Glass Bancorp, Inc
Irving Bank Corporation
Itasca Bancorp, Inc
Ixonia Bancshares, Inc
Jack Banshares, Inc
Jack's Fork Bancorporation, Inc
James Madison Limited
50,
Jason Bankshares, Inc
Jefferson Bancorp, Inc
J. P. Morgan & Co. Incorporated .. 362, 473,
J.R. Montgomery Bancorporation
K. D. Bancshares, Inc
Kellett N.V., Curacao, Netherlands Antilles.
Kentucky Bancorporation, Inc
Key Atlantic Bancorp
Key Bancshares of New York, Inc
Key Centurion Bancshares, Inc
171,
KeyCorp
Key Pacific Bancorp
Keystone Financial, Inc
Kilgore Bancshares, Inc
Kingsbury Bank Holding Co
Kish Bancorp, Inc
K. Roberts, Inc
Lake Ariel Bancorp
Lake Bank Shares, Inc
Lakeview Financial Corp
Landmark Bancshares Corporation
Landmark Financial Group, Inc
Landmark Financial Group of Delaware
Landmark Service Corporation
Lane Financial, Inc
LaSalle National Corporation
LCB Corporation, Inc
Leachville State Bancshares, Inc
Lee Capital Corp
Lemont Bancorp, Inc
Lewisburg Bancshares Corporation
Liberty Bancorp of Georgia
Liberty Bancshares, Inc. (Ada, Ohio)
Liberty Bancshares, Inc. (Montgomery, West
Virginia)
Lincoln Banking Company, Ltd
Lincoln Financial Corporation
Lincolnland Bancorp, Inc
Lincolnland Bancshares, Inc
Little Mountain Bancshares, Inc
Livermore Bankshares
LJT, Inc
Local Investors, Inc
Lockwood Banc Group, Inc
Longview Capital Corporation
Longview Financial Corporation




362, 808
171
73
73
837
229
755
171
681
356
73
681
681
626
516
73
73
681
362
76
946
171
232
129, 229
832
755
810, 875
232, 946
946
362, 808
73
757
662
316, 835
662, 663
663, 755
51
681
946
74
518
683
172
74
681
627
627
627
172
40
74
518
626
681
681
835
626
681
390
629
946
947
946
390
390
946
755
172
835

A85

Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
L.T. Interim Bank
888
Lunenburg Community Bankshares, Inc
172
Luzerne National Bank Corporation
232
Lyons Bancorp, Inc
518
M&F Capital Corporation
924
M&H Financial Services, Inc
518
Madelia Bancshares, Inc
837
Madison Corporation
232
Magna Group, Inc
74, 756, 835
Magnolia State Capital Corporation
681
Manteno Bancshares, Inc
626
Manufacturers Hanover Corporation . . . 362, 620, 731,
890, 930
Manufacturers National Corporation
735, 890
Marine Corporation
54, 681
Marine Midland Banks, Incorporated . . . 362, 738, 808
Market Bancorporation, Inc
626
Mark Twain Bancshares, Inc
681
Marshall & Ilsley Corporation
837
Marrowbone Bancorp, Inc
681
Maryland National Corporation
310, 391
Maui Bancshares, Inc
251
Maxwell Corporation
236
MBI Bancshares, Inc
232
Mcintosh County Bank Holding Company, Inc. .. 518
McLachlen Bancshares Corporation
626
McLeod Bancshares, Inc
724
MCorp
933
MCorp Financial, Inc
933
Mercantile Bancorporation, Inc
172, 626
Mercantile Bankshares Corporation
665
Mercantile Partners and F-K Partnership
627
Mercer County State Bancorp, Inc
889
Merchants Holding Company
233
Merchants National Corporation 172, 390, 627, 876, 946
Merrimack Bancorp, Inc
889
Metropolitan Bank Group, Inc
233
MGeorgia Bankshares, Inc
518
Michigan National Corporation
235
Mid AmeriBancorp, Inc
131
Mid America Banks, Inc
946
Mid-Continental Holdings, Inc
172
Middleburg Bancorp, Inc
172
Midland Bank pic, London, England
362
Midlantic Corporation
63
Midstate Bancorp
172
Mid States Bancshares, Inc
172
Midwest Commerce Corporation
756
Midwest Financial Group, Inc
837
Miles Bancshares, Inc
835, 889
Milledgeville Bancorp, Inc
390
Minnesota Valley Bancshares, Inc
233
Minnesota-Wisconsin Bancshares, Inc
835
Minnwest, Inc
132
Mission Hills Bancshares, Inc
889
Mitsui Trust & Banking Company, Limited, Tokyo,
Japan
871
MNC Financial, Inc
740
Montana Bancsystem, Inc
756
Montgomery Bancorp, Inc., (Bethesda, Maryland) 390
Montgomery Bancorp, Inc. (Mount Sterling,
Kentucky)
74
Montgomery County Bancshares, Inc
233
Montgomery County Bankshares, Inc
233
Morgan Community Bancorp, Inc
889
Morristown Holding Company
233
Mountain Bank System, Inc
756
Mountaineer Bankshares of West Virginia, Inc. .. 215,
627
National Banc of Commerce Company
74
National Penn Bancshares, Inc
390

All

Federal Reserve Bulletin • December 1987

Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
National Security Bank Holding Company
681
NBD Bancorp, Inc
165, 233, 316, 627
NBD Valley Corporation
233, 316
NBS Bancorp
946
NCNB Corporation
666
Nebama, Ltd., George Town, Grand Cayman
517
Nebraska Capital Corporation
682
NESB Corp
835
New England Merchants Bancshares, Inc
947
New Hampshire Savings Bank Corp
756
NewMil Bancorp, Inc
872
Neworld Bancorp, Inc
357
New Palestine Bancorp
74
Nicholson Voting Trust Agreement
74
Norstar Bancorp, Inc
172, 601
Northeast Bancorp, Inc
725
Northeast Wisconsin Financial Services, Inc
74
Northern Bancorp, Inc
682
Northern of Tennessee Corp
172
Northern Plains Investment, Inc
756
Northern Trust Corporation
133
Northfield Bancshares, Inc
306
627
Northside Bancshares, Inc
North Star Holding Company, Inc
756
Northwest Arkansas Bancshares, Inc
172
Northwest Georgia Financial Corporation
682
Norwest Corporation
76, 174, 316, 317, 520
Norwood Associates II
682
NW Bancshares, Inc
627
Old National Bancorp
233
Old Town Bancshares, Inc
390
OMNIBANCORP
837
ONB Corporation
76
One Bancorp
55
O'Neill Properties, Inc
683
One National Bancshares, Inc
936
Orange County Banking Corporation
234
Oregon Pacific Financial, Inc
315
Ottawa Bancshares, Inc
835
Otto Bremer Foundation
890
Ozark Bankshares, Inc
837
Pacific National Bancshares, Inc
316
Pacific National Financial Corporation,
Vancouver, B.C., Canada
66
Pacific Western Bancshares
520
Park Falls Agency, Inc
835
Park National Corporation
233
Parkin Bancorp, Inc
233
Pearl City Bancorp
682
Peoples Bancorp, Inc
682
Peoples Bancorporation
756
Peoples Bancshares, Inc. (Clanton, Alabama)
682
Peoples Bancshares, Inc. (Lewisville, Arkansas).. 627
Peoples First Corporation
756
Peoples Ltd
682
People's Mutual Holdings
885
PEOTONE BANCORP, INC
835
Phoenix Bancorp, Inc
947
Pikeville National Corporation
233
PKbanken, Stockholm, Sweden
520
PNB Financial Corporation
172
PNC Financial Corp
227, 742
Pontchartrain Bancshares, Inc
390
Poplar Bluff Bancshares, Inc
462
Portage County Bancshares, Inc
74
Premier Bankshares Corporation
172, 627
Provident Bankshares Corporation
947
P.T.C. Bancorp
682
Putnam-Greene Financial Corporation
518
Rainbow Investment Company, Inc
627
Ranco Bancshares, Inc
316




Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
Randolph Bancshares, Inc
627
Ranier Bancorporation
55,216
R. Darryl Fisher, M.D., Inc., Pension Trust
173
Raritan Bancorp, Inc
518
Regional Bancorp, Inc
682
Republic Bancorp, Inc
173, 627
Republic Bancshares, Inc
74
RepublicBank Corporation
510
Republic New York Corporation
224, 359
Ridgeland Bancorp, Inc
173
Riggs National Corporation
74
Riherd Bank Holding Company
947
Rittenhouse Financial Services, Inc
391
River Associates Bancorp, Inc
74
River Forest Bancorp
74
River Region Bancshares, Inc
233
Robinson Bancshares, Inc
74
Rock River Bancorporation
835
Rocky Mountain Bancorporation, Inc
835
Rog-Lee, Incorporated
391
682
Rolla Holding Company , Inc
Saban, S.A., Panama City, Republic of Panama.. 224,
359
St. Joseph Bancorporation, Inc
74
137
SafraCorp
San Diego Financial Corporation
317
Sardis Bankshares, Inc
74
Sauk Centre Financial Services, Inc
947
SB&T Corporation
835
Schmid Brothers Investment Company, Inc
72
Security Banco, Inc
889
Security Bancorp, Inc
173
Security Bancorp of Tennessee, Inc
756
Security Bancorporation, Inc
173
Security Bancshares, Inc
683
Security Chicago Corp
835
Security National Bancshares of Sapulpa, Inc
682
Security National Corporation
835
Security Pacific Corporation
235, 381, 391, 622,
671, 731, 746, 756, 815
Sentry Bancorp, Inc
518
Shakopee Bancorporation, Inc
947
Sharon Bancshares, Inc
682
Shawmut Corporation
74
Shelard Bancshares, Inc
75
Shoreline Financial Corporation
889
Signet Banking Corporation
59, 757
Smith Associated Banking Corporation
519
Society for Savings Bancorp, Inc
629
Solvay Bank Corp
391
Southborough Holdings, Inc., Vancouver, B.C.,
Canada
66
South Branch Valley Bancorp, Inc
889
South Carolina National Corporation
235
Southeast Banking Corporation
75, 173, 682
Southeastern Bancshares, Inc
519
Southern Bancshares, Ltd
889
Southern National Corporation
75, 682
Southlake Bancshares, Inc
756
SouthTrust Corporation
682
SouthTrust Corporation of Covington Co., I n c . . . . 233
SOUTHWEST BANCORP, INC
519
Southwest Bancshares, Inc
233, 316
Sovran Financial Corporation . 225, 235, 672, 744, 939
Spring Bancorp, Inc
889
Standard Chartered Bank, London, England. 167, 757
Standard Chartered Holdings, Inc
167
Standard Chartered, Inc
757
Standard Chartered Overseas Holdings Ltd.,
London, England
167, 757
Standard Chartered PLC, London, England . 167, 757

Index to Volume 73

Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
Standard Life Assurance Company, Edinburgh,
Scotland
174
STAR Financial Group, Inc
173
Stark County Bancorp, Inc
173
State Bancorp, Inc. (Bruceton Mills, West Virginia) 836
State Bancorp, Inc. (Washington, Indiana)
75
State Bank of Lake Elmo Employee Stock Ownership Plan and Trust
519
State First Financial Corporation
307
State National Bancorp, Inc
173
Statewide Bancorp,
75
Staun Bancorp, Inc
889
Sterling Financial Corporation
519
Stigler Bancorporation, Inc
173
836
Stillman BancCorp, Inc
Straz Investment Company, Inc
519
Sturm Investment, Inc
173
Suburban Bancorp, Inc
836
Success Financial Group, Inc
836
Suffield Financial Corporation
58, 391
Sumitomo Trust & Banking Co., Ltd., Osaka,
Japan
749
173
Summcorp
Summit Bancorporation
520
SunTrust Banks, Inc
67, 308, 520
Sunwest Financial Services, Inc
463
Susquehanna Bancshares, Inc
756
Tampa Banking Company
682
Tara Bankshares Corporation
756
TCB Investments, Inc
836
TCM Company
75
Tennessee State Bancshares, Inc
174
Texas Commerce Bancshares, Inc
174, 235
Texas Community Bancshares, Inc
70
Texas Gulf Coast Bancorp, Inc
889
Three Rivers Bancshares, Inc
682
Totalbank Corporation of Florida
519
Traders Bankshares, Inc
174
Tri City Bankshares Corporation
889
Tri-County Bancorp, Inc
174
Trustcorp, Inc
175, 391, 520, 627, 827, 836, 934
Turbotville National Bancorp, Inc
233
Turner Bancshares, Inc
234, 316
215 Holding Co
888
U. B. Bancshares, Inc
234
UB&T Bancshares, Inc
75
UNB Corp
234
Unibancorp, Inc
174
Union Bancorp
167, 757
Union Bancorp, Inc
391
Union County Bancshares, Inc
234
Union of Arkansas Corporation
70
Union Planters Corporation
469, 519, 682, 807
Union Savings Bancshares, Inc
947
UniSouth, Inc
75
United Bancorp, Inc
174
United Bancorp of Kentucky, Inc
75
United Bancorporation of New York
234
United Banks of Colorado, Inc
383
United Community Financial Corporation— 508, 683
United Financial Banking Companies, Inc
520
United Missouri Bancshares, Inc
604, 836
United Security Bancorporation
391
United Valley Financial
756
United Virginia Bankshares, Inc
309
U.S. Bancorp
471,941
U.S.B. Corporation
628
U.S. Trust Corporation
235
Valley Bancorp, Inc
836
Valley Bancorporation
174, 757, 890
VALLEY BANC SERVICES CORP
628




A87

Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
Valley Holding Company
Valley National Banc Holding Company
Verde Valley Bancorp, Inc
Vermillion Bancshares Corporation
Vernois Bancshares, Inc
Vidor Bancshares, Inc
Volunteer Bancorp, Inc
Waconia Bancorporation, Inc
Wake Bancorp, Inc
Waltham Corporation
Warranty Bancorporation
Waseca Bancshares, Inc
Washington Bancorporation
Washington Bancorporation, Inc
Waterman Bancshares, Inc
Weakley County Bancshares, Inc
Wedge Holding Company
Wenona Bancorp, Inc
Wesbanco, Inc
Westamerica Bancorporation
Westbank Corporation
Westdeutsche Landesbank Girozentrale,
Dusseldorf, West Germany
Western Community Bancorp
Western Bancshares of Clovis, Inc
Western Iowa Consultants, Inc
Western Security Bancorp
Westpac Banking Corporation, Sydney
Australia
West Tennessee Bancorp, Inc
Wonder Bancorp, Inc
Woodford Bancorp, Inc
Woodstock Acquisition Corp
Worthington Bancshares, Inc
W.T.B. Financial Corporation
Wyatt Bancshares, Inc
Yasuda Trust & Banking Company, Limited,
Tokyo, Japan
Zappo, Inc
Banking, interstate developments, article
Banking supervision and regulation (See
Supervision by Federal Reserve System
Bank Merger Act
Orders issued under
Alpine Bank and Trust
Bank of Kansas City
Bank of Lewanee
Bank of New York Company, Inc
Blissfield State Bank
Carney Bank
Carney Bank of Broward County
Central Bank
Chase Bank of Ohio
Chemical Bank Clare
Commerce Union Bank
Community Bank of Lunenburg
Community Bank-Northwest
County Bank and Trust
Farmers & Merchants Bank
Farmers Bank and Savings Company
First American Bank
First Illinois Bancorp, Inc
First Interstate Bank of California
First of America Bank-Central
First of America Bank-Manistee
First Virginia Bank-Citizens
First Virginia Bank-Clinch Valley
First Virginia Bank-Commonwealth
Hardy County Bank, Inc
L. T. Interim Bank

174
234
234
75
234
889
391
519
925
889
174
391
75
519
75
889
391
75
174, 836
947
219
683
947
174
71
682
61,362
628
756
75
836
628
889
628
873
836
79

629
236
629
236
837
623
623
948
684
521
76
175
521
521
890
388
521
890
76
757
948
175
629
175
236
890

All

Federal Reserve Bulletin • December 1987

Pages
Bank Merger Act—Continued
Orders issued—Cont.
M&I Marshall & Ilsley Bank
318
Madison County Bank
236
Merchants Bank
236
New Colonial Bank
521
New Lowell State Bank
175
Newport News Interim Bank
629
Norstar Bank of Long Island
837
Norstar Bank of Upstate NY
76, 837, 890
Orrville Savings Bank
318
Provident Bank
890
Sandusky Interim Bank
684
Second BNH Acquisition Bank
890
Security Bank
236
Security Bank Northeast
629
Security Bank of Richmond
175
Shelby County State Bank
175
Texas Capital Bank-Richmond
521
Traders Bank
175
Bank Secrecy Act
560-62, 649
Basic banking, article
255
Basle Committee
562-63,649
Belton, Terrence M., article
839
Bernard, Normand R.V.
Transfer to Division of Monetary Affairs
860
Transfer to Office of Board Members
656
Bethea, Martha C., promotion to Deputy Associate
Director, Division of Research and Statistics
29
Board of Governors (See also Federal Reserve System)
Consumer Advisory Council (See Consumer Advisory Council)
Federal Open Market Committee (See Federal Open
Market Committee)
Fees (See Fees for Federal Reserve services to depository institutions)
Litigation (See Litigation)
Members
Greenspan,Alan
Confirmation as Chairman
706
Nomination
588
Kelley, Edward W., Jr., appointment as member
588
List, 1913-87
177,631,759
Wallich, Henry C., resignation
112
Volcker, Paul A., retirement
588
Office of Inspector General established
708
Policy statements (See specific subject)
Publications and releases (See Publications in 1987)
Regulations (See Regulations)
Rules (See Rules)
Staff changes
Adams, Donald B
29
Bernard, Normand R.V
656, 860
Bethea, Martha C
29
Bowen, Brent L
709
Clark, Stephen J
917
Dahl, Frederick R
116
DeBeer, Anne
590
Dreyer, Franklin D
116
Fox, Lynn Smith
656
Greene, Mark N
916
Kichline, James L
656
Kohn, Donald L
656, 860
Kreimann, Walter W
116
Kwast, Myron L
916
Lindsey, David E
860
Madigan, Brian F
916
Malphrus, Stephen R
211
Pauley, Darrell R
917
Porter, Richard D
860
Prell, Michael J
860
Roseman, Louise L
917
Scanlon, Martha S
29




Pages
Staff changes—Continued
Simpson, Thomas D
Slifman, Lawrence
Stockton, David J
Taylor, William
Tinsley, Peter A
Truman, Edwin M
Williams, David L
Zickler, Joyce K
Staff studies (See Staff Studies)
Statements to Congress (See Statements to Congress)
Supervision (See Supervision by Federal Reserve
System)
Thrift Institutions Advisory Council (See Thrift Institutions Advisory Council)
Bowen, Brent L., promoted to Inspector General,
Office of the Inspector General
Brayton, Flint, article
Burns, Arthur F.
Anguish of central banking, article
Statement on his death, by Chairman Volcker

916
916
916
656
29
656
657
29

709
93
687
655

CANNER, Glen B.
Articles,
1, 255
Staff study
783
Capital Adequacy Guidelines
Proposed amendment to include a risk-based capital
measure
589
Revision
26
Change in Bank Control Act
561
Check clearing and collection (See also Fees and Float)
Clark, Stephen J., appointed Assistant Controller,
Office of the Controller
917
Clearing House Interbank Payments System (CHIPS) . 839
Commerce Department
413
Commercial banks, profitability of insured commercial
banks in 1986, article,
537
Commodity Credit Corporation
530
Community Reinvestment Act
258
Competitive Equality Banking Act of 1987, statement of
guidance
788
Comptroller of the Currency
268, 562, 650, 841
Conference of State Bank Supervisors
268
Consumer Advisory Council
Activity with regard to basic banking
259
Appointment of new members
113
Meetings
296,655,860
Nominations sought for appointment of new members 655
Consumer credit (See Credit)
Consumer Federation of America
257
Consumers Union
257
Corporate merger activity, staff study
270
Corrigan, E. Gerald , statement on globalization of financial markets and institutions
569
Credit (See also Loans)
Consumer finance surveys, article
761
Securities (See Securities credit)
Stock market (See Over-the-counter margin stock list
and Regulations: T, and U)
Truth in lending (See Truth in lending)
Credit card
Interest rates, article on proposed ceilings
1
Legislation to require price and term disclosures on
applications
338
Proposal to incorporate credit risks on off-balancesheet interest and exchange rate contracts
350
Cross, Sam Y., reports
14, 330, 552, 779
DAHL, Frederick R., Associate Director, Division of
Banking Supervision and Regulation, retirement
116
Danker, Deborah J., article
537
Davis, Carolyn D., staff study
699

Index to Volume 73

Pages
DeBeer, Anne, Assistant Director, Division of Federal
Reserve Bank Operations, resignation
Depository institutions (See also specific types)
Reserve requirements (See Regulation D)
Deposits
Reserve requirements (See Regulation D)
Dewind Commission
Directors, Federal Reserve Banks and Branches, list .
Discount rates at Reserve Banks (See Interest rates)
Dreyer, Franklin D., appointment, Deputy Director,
Division of Banking Supervision and Regulation
EARNINGS and expenses (See Income and expenses)
Economic and financial developments (See Monetary
policy)
Elliehausen, Gregory E., articles
87, 163, 179,
Employee Retirement Income Security Act of 1974
(ERISA)
Employment, regional outlook, statement
315, 316,
Equal Credit Opportunity, Regulation B (See Regulations)
Economic Recovery Tax Act (ERTA)
Exchange markets for dollar and relationship among
exchange market conditions and domestic economic
and credit developments, statement
Exchange rates
Expedited Funds Availability Act, statement
Expenses (See Income and expenses)
Export Trading Company Act of 1982

590

259
393
116

761
853
318
895
15
355
205
554

FAIR Deposit Availability Act of 1987, S. 344, statement
279
Farm Credit Administration
532
Farm Credit System
523, 528-32, 857
Farmers Home Administration
528, 530, 532, 858
Farming (See Agriculture)
Federal Bureau of Investigation
650
Federal Deposit Insurance Corporation 268, 535, 546, 651,
841
Federal Financial Institutions Examination Council... 255,
256, 651
Federal Home Loan Bank Board
268, 583, 651, 841
Federal Home Loan Mortgage Disclosure Act, order
terminating exemption
351
Federal Open Market Committee, policy actions,
record
31, 117, 299, 443, 591, 711, 789, 862
Federal Reserve and Treasury foreign exchange operations (See Foreign exchange operations)
Federal Reserve Banks
Directors, list
393
Discount rates (See Interest rates)
Fees (See Fees for Federal Reserve services to depository institutions)
Income, preliminary figures
209
Federal Reserve Board (See Board of Governors)
Federal Reserve System (See also Board of Governors)
Membership, admission of state banks
30, 116, 211,
350, 441, 590, 658, 788, 861, 917
Supervision (See Supervision by Federal Reserve
System)
Federal Savings and Loan Insurance Corporation fund 586
Fedwire, standard format approved
28
Fees for Federal Reserve services to depository institutions
Priced services
Daylight overdrafts
Article
839
Proposal
210, 297
Financial results of operations, quarterly
28, 589
Large-dollar transfer systems, reducing risks
707
New fee schedules
26




A89

Pages
Payments system risk, proposal
115, 585
Pricing policy committee, new members
27
Processing of applications of Edge corporations,
proposal
28
Proposal to charge assessment and fees for
certain supervisory activities
656, 709
Redeposit service for low-dollar returned
checks, proposal
347
Reductions in fee structure for book-entry
securities
347
Report
441
Services across state lines
Policy statement
869
Proposal
28
Tiered pricing structure approved
27
Fergus, James T.
Article
1
Staff study
783
Financial Accounting Standards Board
853
Financing (See specific subject)
Float, cost generated by ACH transactions, revised
interpretation
115
Foreign exchange operations of Treasury and Federal
Reserve, reports
14, 330, 552, 779
Foreign exchange value of the dollar, article
411
Fox, Lynn Smith, appointed Special Assistant to the
Board for Congressional Liaison, Office of Board
Members
656
Freedom of Information Reform Act
453
Full Employment and Balanced Growth Act of 1978
(See Monetary policy: reports to Congress)
GABRIEL, Stuart A., article
Garn-St Germain Depository Institutions Act of 1982 .
Gelfand, Matthew D., article
General Accounting Office
Glass-Steagall Act, Sumitomo Bank investment
Government Securities Act of 1986
Adoption of status report forms
Proposal
Gramm-Rudman-Hollings legislation
Greene, Mark N., appointed Assistant Director,
Research and Statistics
Greenspan, Alan
Confirmation as Chairman
Nomination
Statement on liquidity support
Statement on structure of financial
services industry
Guynn, Jack, appointment, pricing policy committee ..
HEALTH and Human Services, Department of
High-income families, article on financial characteristics
Humphrey, David B.
Article
Assistant Director, Division of Research and Statistics, resignation
Humphrey-Hawkins Act (See Monetary policy: reports
to Congress)

893
26
839
895
24
589
296
564
916
706
588
915
907
27
761
163
839
245

INCOME and expenses, Federal Reserve Banks,
209
Industrial production, releases
22, 110, 197, 272, 336,
423, 558, 647, 701, 785, 855, 904
Insured commercial banks, article on profitability
618
Interest rates
Changes in discount rate
787
Credit cards, article
1
Restructuring of charges
706
Internal Revenue Service
561
International Lending Supervision Act of 1983
579
International Monetary Fund
413
International transactions in 1986
321

All

Federal Reserve Bulletin • December 1987

Pages
JOHNSON, Manual H.
Statement on bank-affiliated export trading
companies
Statement on condition of banking system
Statement on money laundering
Justice, Department of

341
577
649
650-51

KENNICKELL, Arthur B., articles
179,
Keehn, Silas, appointment to pricing policy committee
Kelley, Edward W., Jr., appointment as Member of the
Board of Governors
Kichline, James L.
Change of title to Staff Director, Division of Research
and Statistics
Staff Director, Division of Research and Statistics,
resignation
Kohn, Donald L.
Appointed Director, Division of Monetary Affairs...
Transfer and title change to Deputy Director, Division
of Research and Statistics (Monetary Policy and
Financial Markets)
Kreimann, Walter W., Associate Director, Division of
Support Services, retirement
Kwast, Myron L.
Appointed Assistant Director, Division of Research
and Statistics
Publication

761
27
588
656
656
860
656
116
916
29

LARGE-Dollar Payment System Advisory Group, new
members
708
Large-dollar payment system risks, proposal
210, 296
Legislation (See subject or specific name of act)
Lindsey, David E., appointed Deputy Director, Division of Monetary Affairs
860
Liquidity support to financial system, statement
915
Litigation, cases pending involving Board of
Governors
77, 176, 237, 318, 392, 521, 630,
684, 758, 838, 891, 948
Loans (See Credit)
Agricultural (See Agriculture)
MADIGAN, Brian F., appointed Assistant Director,
Division of Monetary Affairs
Mahoney, Patrick I., staff study
Maland, Ellen, article
Malphrus, Stephen R., promoted to Associate Director,
Office of the Executive Director for Information Resources Management
Marquardt, Jeffrey C., article
Mauskopf, Eileen, article
Margin requirements
Over the counter stocks (See Over-the-counter margin stocks, list)
McLaughlin, Mary M.
Article
Staff study
Melichar, Emanuel, article
Member banks (See State member banks and Depository institutions)
Mergers, Bank Merger Act (See Bank Merger Act)
Monetary Control Act
Monetary policy: reports to Congress, articles . . . 239,
Money Laundering Control Act
Money stock data, revisions
Mortgage markets, post 1982, article
MPS model, structure and uses, article

916
20
255
211
839
93

537
20
523

564
633
563
347
893
93

NATIONAL Association of State Credit Union Supervisors
268




Pages
National Association of State Savings and Loan Supervisors
268
National Credit Union Administration
268, 841
OVER-THE-COUNTER margin stock list, revisions . 210,
441, 709, 915
O'Brien, Paul F., staff study
20
PAULEY, Darrell R., appointed Assistant Controller,
Office of the Controller
Pauls, B. Dianne, article
Payments mechanism and systems (See Fees and Transfers of funds)
Pension Benefit Guaranty Corporation
Porter, Richard D., appointed Assistant Director, Division of Monetary Affairs
Prell, Michael J., appointed Director, Division of Research and Statistics
Pricing of Federal Reserve services (See Fees for Federal Reserve services to depository institutions)
Private pension plans, funding, staff study
Production, industrial (See Industrial production)
Program Improvement Project
Publications in 1987
Annual Report
Annual Report: Budget Review, 1986-87
Annual Statistical Digest, 1986
Bank Holding Company Supervision Manual
Financial Futures and Options in the U.S. Economy..
Industrial Production—1986 Edition
Staff studies (See Staff studies)

917
411
853
860
860
853
568
589
589
915
296
29
28

REDEPOSIT service for small checks, proposal . 28, 347
Regulations (Board of Governors, See also Rules)
AA, Unfair or Deceptive Acts or Practices
New York request for exemption from cosigner
provision
213
Wisconsin request for exemption granted
39
B, Equal Credit Opportunity
Data collection requirements for monitoring
purposes
350
Notification regarding denial of incomplete
applications
350
Preemption determination
869
Proposed revision to official staff commentaries . . . 28
D, Reserve requirements of depository institutions
Increase amount of transaction accounts subject to
3 percent reserve requirement
26, 37
E, Electronic Fund Transfers
Automated teller machines, promotional material . 350
Address systems for paying government benefits by
electronic terminals
350
Coverage of dividend or interest payments of securities
350
Payments to third parties from money market deposit accounts
350
Periodic statement requirement, proposed amendment
787, 799
Proposed revision to official staff commentaries... 28
K, International Banking Operations
Debt-for-equity swaps, proposed amendment to
permit certain investments by banking
organizations
787, 800
T, Margin Credit Extended by Brokers and Dealers
Employee-owned stock options, proposed amendment
788
Over-the-counter margin bonds, amendment to revise definition
788, 801
Proposal to revise the definition of an OTC margin
bond
441

Index to Volume 73

Pages
U, Credit by banks for the Purpose of Purchasing or
Carrying Margin Stocks
Amendment to reduce paperwork for banks that
take margin stocks as collateral for loans . 860, 869
Y, Bank Holding Companies and Change in Bank
Control
Amendment to Change in Bank Control Act to
require federal banking agencies to publish notice
of any filing made to acquire control of a bank or
a bank holding company
656, 659
Amendments to Change in Bank Control Act required by Anti-Drug Abuse Act of 1986
211
Perpetual debt securities as primary capital, amendment
37
Z, Truth in Lending
Exemption on refinancings by original creditors
from right of rescission
115, 123, 350
Proposed amendment to implement provision of
Competitive Equality Banking Act of 1987 regarding adjustable rate mortgage caps
860
Proposed disclosure of more loan information on
adjustable rate mortgages
28
Proposed revision to official staff commentaries . . . 28
Statement on proposed amendment to Truth in
Lending Act regarding home equity loans
910
Reserve requirement increase, announcement
26
Retail deposit pricing, staff study
20
Roseman, Louise L., appointed Assistant Director,
Division of Federal Reserve Bank Operations
917
Rules (See also Regulations)
Regarding availability of information, amendment to
revise schedule of fees applicable to requests for
Board records
453
Regarding delegation of authority, amendment to
waive publication and solicitation of public comment requirements of Change in Bank Control Act.. 123

SCANLON, Martha S., appointed Assistant Director,
Division of Research and Statistics
Savage, Donald T., article
Seasonal Adjustment Program, extension
Seasonal credit (See Credit)
Securities (See specific types)
Seger, Martha R.
Statement on eliminating use of international banking
system by criminal elements
Statement on home equity lines of credit, H.R. 3011
Statements on legislation to require price and term
disclosures in credit card applications and to
establish nationwide ceiling on credit card interest
rates
338,
Simpson, Thomas D., promoted to Associate Director,
Division of Research and Statistics
Slifman, Lawrence, promoted to Associate Director,
Division of Research and Statistics
Social Security Administration
Social Security payments, direct deposit in United
Kingdom
Spindt, Paul A., article
Staff studies
Determinants of corporate merger activity
Private pension plans, funding
Proposed ceilings on credit card interest rates, effects
on consumers and creditors
Retail deposit pricing
Stock market volatility
State member banks
Capital adequacy (See Capital adequacy)
Membership in Federal Reserve System (See Federal
Reserve System)
Mergers (See Bank Merger Act)




29
79
210

560
910

430
916
916
655
655
179
270
853
783
20
699

A91

Pages
Statements to Congress (including reports and letters)
Advisory councils, effectiveness (Governor Angell). 913
Bank-affiliated export trading companies (Vice Chairman Johnson)
341
Credit card application, legislation to require price
and term disclosures (Governor Seger)
338
Condition of the banking system (Vice Chairman
Johnson)
577
Death of Arthur F. Burns (Chairman Volcker)
655
Domestic and international economic policies (Chairman Volcker)
275
Eliminating the use of international banking system
560
by criminal elements (Governor Seger)
Exchange market developments and international
debt (Chairman Volcker)
425
Fair Deposit Availability Act of 1987, S. 344 (Governor Angell)
279
Federal Reserve Board views on delayed availability
and H.R. 28, Expedited Funds Availability Act
(Governor Angell)
205
Federal Reserve Board views on legislative issues
(Chairman Volcker)
199
Federal Reserve System's expenses and budget (Governor Angell)
563
Financial services industry, structure (Chairman
Greenspan)
907
Globalization of financial markets and institutions (E.
Gerald Corrigan, President, Federal Reserve Bank
of New York)
569
Home equity lines of credit, H.R. 3011 (Governor
Seger)
910
Legislation to require price and term disclosures in
credit card applications and to establish nationwide
ceiling on credit card interest rates (Governor
Seger)
430
Monetary policy
Reports
239, 633
Semiannual review (Chairman Volcker)
282, 703
Money laundering (Vice Chairman Johnson)
649
Proposal to establish a secondary market for farm
mortgage loans (Governor Angell)
857
Risk-based capital framework, joint proposal (Chairman Volcker)
435
Stock market credit
Over-the-counter stocks (See Over-the-counter margin stock, list)
Regulations G, T, and U (See Regulations)
Stocks (See specific types)
Stockton, David J., appointed Assistant Director, Division of Research and Statistics
916
Sumitomo Bank, announcement by Federal Reserve on
proposed investment
24
Supervision by Federal Reserve System
Proposal to charge assessment and fees for certain
supervisory activities
656, 709
Supervisory Procedure G107, order terminating exemption
351

TABLES (For index to tables published monthly, see
guide at top of p. A81; for special tables published
during the year, see list on p. A69.)
Tax Reform Act
Taylor, William, change in title to Staff Director, Banking Supervision and Regulation
Testimony (See Statements to Congress)
Thomas, Charles P., article
Thrift Institutions Advisory Council
Appointment of new members
Tinsley, Peter A., promotion to Deputy Associate
Director, Division of Research and Statistics
Transaction accounts, changes in use, article

896
656
321
209
29
179

All

Federal Reserve Bulletin • December 1987

Pages
Transfers of funds
Fees (See Fees for Federal Reserve services to depository institutions)
Regulation E (See Regulations)
Treasury and Federal Reserve foreign exchange operations (See Foreign exchange operations)
Truman, Edwin M., change in title to Staff Director,
Division of International Finance
656
Truth in Lending, Regulation Z (See Regulations)
UNIDEX Corporation
263
U.S. government securities, adoption of status report
forms
589
U.S. Treasury
209, 413, 560, 562, 574, 575, 650
VOLCKER, Paul A.
Death of Arthur F. Burns, statement
655
Domestic and international economic policies, statement
275
Exchange market developments and international
debt, statement
425




Pages
Volcker—continued
Federal Reserve Board views on legislative issues,
statement
Monetary policy against background of economic and
financial developments, statement
Monetary policy report to Congress, statement 239,
Monetary policy, semiannual review, statement
Retirement
Risk-based capital framework, joint proposal, statement
WALLACE, William H., appointment, pricing policy
committee
Warshawsky, Mark, staff studies
270,
White, Alice P., staff studies
20,
Williams, David L., appointed Assistant Director, Division of Support Services
ZICKLER, Joyce K., appointment, Assistant Director,
Division of Research and Statistics

199
282
633
703
588
435
27
853
699
657

29

A93

Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK, Chairman
branch, or facility
Zip
Deputy Chairman

President
First Vice President

BOSTON*
NEW YORK*
Buffalo

02106

Joseph A. Baute
George N. Hatsopoulos

Frank E. Morris
Robert W. Eisenmenger

10045

John R. Opel
Virginia A. Dwyer
Mary Ann Lambertsen

Vice President
in charge of branch

E. Gerald Corrigan
Thomas M. Timlen

14240

John T. Keane

PHILADELPHIA

19105

Nevius M. Curtis
George E. Bartol III

Edward G. Boehne
William H. Stone, Jr.

CLEVELAND*

44101

Charles W. Parry
John R. Miller
Owen B. Butler
James E. Haas

W. Lee Hoskins
William H. Hendricks

Leroy T. Canoles, Jr.
Robert A. Georgine
Gloria L. Johnson
Wallace J. Jorgenson

Robert P. Black
Jimmie R. Monhollon

Bradley Currey, Jr.
Larry L. Prince
A. G. Trammell
Andrew A. Robinson
Robert D. Apelgren
C. Warren Neel
Caroline K. Theus

Robert P. Forrestal
Jack Guynn

Robert J. Day
Marcus Alexis
Robert E. Brewer

Silas Keehn
Daniel M. Doyle

W.L. Hadley Griffin
Robert L. Virgil, Jr.
James R. Rodgers
Raymond M. Burse
Katherine H. Smythe

Thomas C. Melzer
James R. Bowen

John B. Davis, Jr.
Michael W. Wright
Warren H. Ross

Gary H. Stern
Thomas E. Gainor

Irvine O. Hockaday, Jr.
Robert G. Lueder
James E. Nielson
Patience S. Latting
Kenneth L. Morrison

Roger Guffey
Henry R. Czerwinski

Bobby R. Inman
Hugh G. Robinson
Mary Carmen Saucedo
Walter M. Mischer, Jr.
Robert F. McDermott

Robert H. Boykin
William H.Wallace

Fred W. Andrew
Robert F. Erburu
Richard C. Seaver
Paul E. Bragdon
Don M. Wheeler
John W. Ellis

Robert T. Parry
Carl E. Powell

Cincinnati
Pittsburgh

45201
15230

RICHMOND*

23219

Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans

30303
35283
32231
33152
37203
70161

CHICAGO*

60690

Detroit

48231

ST. LOUIS

63166

Little Rock
Louisville
Memphis

72203
40232
38101

MINNEAPOLIS

55480

Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio

59601
64198
80217
73125
68102
75222
79999
77252
78295

SAN FRANCISCO

94120

Los Angeles
Portland
Salt Lake City
Seattle

90051
97208
84125
98124

Charles A.Cerino1
Harold J. Swart1

Robert D. McTeer, Jr.1
Albert D. Tinkelenberg1
John G. Stoides1

Delmar Harrison1
Fred R. Herr1
James D. Hawkins1
Patrick K. Barron1
Donald E. Nelson
Henry H. Bourgaux

Roby L. Sloan1

John F. Breen
James E. Conrad
Paul I. Black, Jr.

Robert F. McNellis

Enis Alldredge, Jr.
William G. Evans
Robert D. Hamilton
Tony J. Salvaggio1
Sammie C. Clay
Robert Smith, IIP
Thomas H. Robertson

Thomas C. Warren2
Angelo S. Carella1
E. Ronald Liggett1
Gerald R. Kelly1

*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, N e w Jersey 07016;
Jericho, N e w York 11753; Utica at Oriskany, N e w York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.

Digitized for 1. Senior Vice President.
FRASER
2. Executive Vice
http://fraser.stlouisfed.org/ President.
Federal Reserve Bank of St. Louis

A94

The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories

{ ® {

\
®

Yor*
H S ^ e ' P ^

April 1984

i
i
i
i
i
t
•
i
i

ALASKA

©

\
T / o

•2A

LEGEND

Boundaries of Federal Reserve Districts

®

Federal Reserve Bank Cities

Boundaries of Federal Reserve Branch
Territories

*

Federal Reserve Branch Cities
Federal Reserve Bank Facility

Q

Board of Governors of the Federal Reserve
System




Publications of Interest
FEDERAL

RESERVE

REGULATORY

SERVICE

To promote public understanding of its regulatory
functions, the Board publishes the Federal Reserve
Regulatory Service, a three-volume looseleaf service
containing all Board regulations and related statutes,
interpretations, policy statements, rulings, and staff
opinions. For those with a more specialized interest in
the Board's regulations, parts of this service are
published separately as handbooks pertaining to monetary policy, securities credit, and consumer affairs.
These publications are designed to help those who
must frequently refer to the Board's regulatory materials. They are updated at least monthly, and each
contains conversion tables, citation indexes, and a
subject index.
The Monetary Policy and Reserve
Requirements
Handbook contains Regulations A, D, and Q plus
related materials. For convenient reference, it also
contains the rules of the Depository Institutions
Deregulation Committee.




The Securities Credit Transactions Handbook contains Regulations G, T, U, and X, dealing with extensions of credit for the purchase of securities, together
with all related statutes, Board interpretations, rulings, and staff opinions. Also included is the Board's
list of OTC margin stocks.
The Consumer and Community Affairs Handbook
contains Regulations B, C, E, M, Z, AA, and BB and
associated materials.
For domestic subscribers, the annual rate is $200 for
the Federal Reserve Regulatory Service and $75 for
each handbook. For subscribers outside the United
States, the price including additional air mail costs is
$250 for the Service and $90 for each Handbook. All
subscription requests must be accompanied by a check
or money order payable to Board of Governors of the
Federal Reserve System. Orders should be addressed
to Publications Services, Mail Stop 138, Federal Reserve Board, 20th Street and Constitution Avenue,
N.W., Washington, D.C. 20551.

Publications of Interest
FEDERAL RESERVE
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 resolve a billing error.
The Board also publishes the Consumer Handbook
to Credit Protection Laws, a complete guide to consumer credit protections. This 44-page booklet ex-




Fair
Credit

Billing

plains how to use the credit laws to shop for credit,
apply for it, keep up credit ratings, and complain about
an unfair deal.
Protections offered by the Electronic Fund Transfer
Act are explained in Alice in Debitland. This booklet
offers tips for those using the new "paperless" systems for transferring money.
Copies of consumer publications are available free
of charge from Publications Services, Mail Stop 138,
Board of Governors of the Federal Reserve System,
Washington, D.C. 20551. Multiple copies for classroom use are also available free of charge.