Full text of Federal Reserve Bulletin : December 1988

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VOLUME 7 4 •

NUMBER 12 •

DECEMBER 1988

FEDERAL RESERVE

BULLETIN

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • Michael Bradfield • S. David Frost
• Griffith L. Garwood • 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
783 INNOVATION AND REGULATION
BANKS IN THE 1990S

OF

Alan Greenspan, Chairman, Board of Governors, outlines the goals of regulatory policy for depository institutions: to avoid the
risk of systemic failure of the insured depository system, to promote competitive
and efficient capital markets, to protect impartiality in the granting of credit, and to
prevent extension of the safety net to nonbanking activities. Chairman Greenspan
says that change is inevitable and, if properly managed, can bring improvements in
economic welfare. Therefore, the regulator's job is to adapt to change in ways that
preserve its benefits while maintaining the
stability of the financial system.
788 INDUSTRIAL

PRODUCTION

Industrial production was unchanged in
September.
790

ANNOUNCEMENTS

New economic measures announced by the
government of Mexico.
Final ruling on "payable through" checks
issued under Expedited Funds Availability
Act.
Fee schedules for 1989 available for priced
services of the Federal Reserve District
Banks.
Revised List of Marginable OTC Stocks
now available.
Publication of Annual Statistical
1987.

793 LEGAL

DEVELOPMENTS

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

AND BUSINESS

STATISTICS

These tables reflect data available as of
October 28, 1988.
A3 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A53 International Statistics
A69 GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES,
AND
SPECIAL
TABLES
A 7 0 BOARD

OF GOVERNORS

A72 FEDERAL OPEN MARKET
AND STAFF; ADVISORY
A74 FEDERAL RESERVE
PUBLICATIONS
AH

SCHEDULE
PERIODIC

STAFF

COMMITTEE
COUNCILS

BOARD

OF RELEASE
RELEASES

A 7 9 INDEX TO STATISTICAL
A 8 i INDEX TO VOLUME

AND

DATES

FOR

TABLES

74

Digest,

Changes in Board staff.

A92 FEDERAL RESERVE
BANKS,
BRANCHES, AND OFFICES

Admission of six state banks to membership
in the Federal Reserve System.

A93 MAP OF FEDERAL




RESERVE

SYSTEM

Innovation and Regulation of Banks
in the 1990s
Alan Greenspan, Chairman of the Board of Governors of the Federal Reserve System, made the
following remarks before the American Bankers
Association, in Honolulu, Hawaii, on October 11, 1988.
It is a pleasure to have the opportunity to address
members of the American Bankers Association.
As you may recall, a minor mishap in securities
markets came between us last year. I have one
request at the outset: if anyone knows how the
stock market closed today, don't tell me until
I've finished.
That we can joke a little about the events of a
year ago is a tribute to the resilience and adaptability of our financial markets and economy.
Nonetheless, such occasions do remind us of the
speed and suddenness with which markets can
move today, and of the potential impacts of such
movements on investors and financial institutions.
Even before last October's events, there was
increased concern about potential instabilities in
the financial system. Such concern arose as a
consequence of the major changes in the financial
landscape that have occurred in this decade—
changes that in some cases are continuing and
even accelerating. I shall spend only a few minutes reviewing them, concentrating on their implications for the business of banking and for the
regulation of banks and other depository institutions. As you adapt, so must we, and that is the
focus of my remarks today.
At the very beginning I would highlight two
points. First, the goals of regulatory policy for
depository institutions may be stated quite simply: to avoid the risk of systemic failure of the
insured depository system, to promote competitive and efficient capital markets, to protect
impartiality in the granting of credit, and to
prevent extension of the safety net to nonbanking




activities. Second, change is inevitable and,
while it may bring the potential for increased
risk, it is also likely, if properly managed, to
bring improvements in economic welfare. The
regulator's job is to adapt to change in ways that
preserve its benefits while maintaining the stability of the financial system.

KEY

CHANGES

IN RECENT

YEARS

Over the past decade our financial landscape has
experienced a number of key, and often interconnected, changes. Advances in computer and telecommunications technology have enabled both
borrowers and lenders to obtain and use creditand market-risk information more easily and at
lower cost. In important ways, these developments have displaced banks from their traditional
economic functions. Many new financial products have resulted from this technological revolution in information processing that challenge
traditional bank loans and funding techniques. It
seems reasonable to assume that the trend
toward direct investor-borrower linkage, or
more securitization, will continue.
Moreover, financial markets have become increasingly international in scope, and the resulting intensity of competition has put increased
pressures on the profit margins of many depository institutions. When combined with the revolution in information processing, the increase in
the speed with which assets can be shifted
around the world in liquid markets has accentuated the need for effective risk-management policies by both depository institutions and regulators.
A significant element in financial change, the
deregulation of interest rates and selected product lines in the United States and some other
countries, has improved the overall competitive-

784

Federal Reserve Bulletin • December 1988

ness and efficiency of capital markets. But it has
also removed hitherto protected sources of funds
to depositories, potentially exposing them to
increased interest rate risk and to added pressures on profit margins. Similarly, the breakdown of barriers to interstate banking in the
United States, while providing opportunities for
geographic diversification and more open access
to new markets, also has increased pressures on
some institutions. Today, all but five states have
passed some form of liberalized interstate banking law. There is every reason to believe that the
competitive pressures brought about by the
deregulation of interest rates, product lines, and
geographic limitations will continue.
Finally, macroeconomic events such as the
sharp increase in inflation and interest rates in
the late 1970s, the severe recessions of the early
1980s, the steep decline in oil prices, and the
October 1987 stock market crash, have, as seems
evident, induced people in general, and financial
market participants in particular, to expand their
expectations regarding the potential volatility of
asset prices and other economic variables. In
other words, these events have not only caused
severe contemporaneous problems; they have
also injected a new and higher degree of uncertainty, or risk, into projections of the future. This
reaction highlights the fundamental interdependencies between the macroeconomy and the financial markets that any policymaker—but especially one in the central bank—must recognize.
For all the new techniques for shifting risk
around the financial system, the ultimate safety
and stability of that system depend on the stability of the economy on which it is based. And that
economy cannot itself behave in a stable and
predictable fashion if the markets in which claims
on saving and capital are allocated are subject to
waves of concern about key participants.

KEY

COMPONENTS

OF POLICY

RESPONSE

The implications of these changes for the regulation of depository institutions are varied and
complex. I believe the way to begin responding
to both today's and tomorrow's economic environment is to fortify the natural "shock absorbers" of the financial system—capital and liquid-




ity—and concurrently to make better use of
market and market-like incentives to discourage
excessive risk-taking at individual institutions.
There must be a symmetry of reward and risk for
owners of depository institutions: those who
stand to gain substantially if the institution is
successful must also stand to lose substantially if
outcomes are not so favorable. Surely, one lesson from the experience with some troubled
depository institutions in recent years is that
unbalanced incentives to assume risk, arising
when the federal insurer absorbs losses while the
owners reap profits, can lead to destabilizing
behavior.
The key to engendering market incentives, and
at the same time providing shock absorbers for
depository institutions, is to require that those
owners who would profit from an institution's
success have the appropriate amount of their
own capital at risk. Capital acts as a buffer
against unexpected shocks to a firm and thereby
helps to insulate both individual firms and the
system from risk. There is no better way to
ensure that owners exert discipline on the behavior of their firm than to require that they have a
large stake in that enterprise. The needs for
larger shock absorbers and for increased private
incentives to monitor and control risk are the
fundamental reasons why increasing the amount
of capital in the depository institution system has
been a major goal of Federal Reserve regulatory
policy in the 1980s. To the extent that we succeed, we will have begun to lay a solid foundation for the 1990s.
Some may argue that raising capital standards
will put banking organizations at a competitive
disadvantage. This argument strikes me as shortsighted. Well-capitalized firms can be counted on
to be around in the future, and thus to be worthy
of customers' willingness to establish long-term
relationships. Moreover, while the capital ratios
of bank holding companies generally have been
rising during the 1980s, they still tend to be
considerably below those at nondepository financial firms. In many cases, this difference no
doubt reflects real or imagined protection by the
federal safety net. This tendency toward overreliance on the safety net by both owners and
depositors has inhibited, and in some cases may
have eliminated, the private market signals that

Innovation and Regulation of Banks in the 1990s

would have made much less likely many of the
portfolio problems now facing numerous depository institutions. Thus, the safety and soundness
of the financial system require that banks have
adequate capital.
For many banks this means increased capital
requirements. I recognize that some of these
banks, not feeling market pressures to raise
capital ratios, may consider increased capital
requirements unnecessarily burdensome. However, given the existence of the federal safety
net, market signals regarding the level of capital
may not be appropriate from a broader perspective. The safety net has the effect of overriding
some forms of market discipline, and the implied
partial backing of the federal government for
some bank funds means that incentives for banks
to maintain adequate capital are weakened.
The reluctance of banks to raise equity in
capital markets may also be based, to an extent,
on comparisons of book and market values of
equity and the apparent consequences of a shortfall in market value for shareholder dilution. But
the relevant consideration is clearly enhancing
the market value of the firm over time. Highcapital banks will be the ones that can react to
the changing environment and profit from new
opportunities.
Regulatory policy can and should do more than
merely raise the level of capital. A risk-based
system of capital standards should help to deter
excessive risk-taking by individual banks; and
the greater capital costs imposed on higher-risk
banks will imply a fairer distribution of capital
requirements within the banking system. These
principles are well known and well utilized in
private markets: higher-risk borrowers are
charged higher interest rates on loans in money
and capital markets, and higher-risk insurees are
charged higher premiums by insurance companies.
Bank regulators took an important step forward this past summer,•when virtually all of the
major industrial nations agreed to implement a
risk-based capital system by the end of 1992.
Everyone realizes that the scheme adopted is far
from perfect. Indeed, in recognition of the fact
that the framework does not take account of all
the risks to which banks may be exposed, banking organizations generally should, I believe, be




785

encouraged to operate above the minimum capital ratios specified in the accord. Doing so is
especially important for institutions undertaking
rapid expansion, and for those with operational
or financial characteristics that are of supervisory concern. In addition, it is clearly the intention of all concerned to improve the risk-based
system over time. For example, work currently
is proceeding on how interest rate and liquidity
risk might be included.
But to dwell on the accord's shortcomings
really misses the important points. We know the
current system has serious deficiencies, and the
risk-based capital accord clearly is an improvement. It establishes the principle of requiring that
a bank's capital ratio reflect its degree of risk.
The accord also recognizes explicitly that offbalance-sheet activities impose risks on the bank
and therefore deserve a capital charge. In the
risk-based accord a viable forum has been created in which international cooperation on bank
regulatory matters can be designed and implemented. In an increasingly interdependent world,
there can be little doubt that this represents
important progress. The accord significantly reduces the competitive inequities to which our
banks have been subject as U.S. capital standards have risen relative to those in other countries. Finally, in the long run the accord may
serve as a model for international cooperation in
regulating other aspects of banking and even
other financial intermediaries.
The accumulation of adequate capital and the
successful implementation of a risk-based capital
system would certainly go far toward ensuring
the stability of the system of depository institutions in the 1990s. However, the information
revolution is changing the very nature of financial
intermediation in ways that, if certain statutory
and regulatory policies are maintained, in all
likelihood will cause the role for banks to diminish. This, in turn, will make it difficult for banks
to obtain the capital they need.
The key reform needed to respond to the
information revolution is, of course, repeal of the
Glass-Steagall separations of commercial and
investment banking. The provision of investment
banking services, particularly to corporate clients, is on the cutting edge of the information
revolution. Repeal of Glass-Steagall would allow

786

Federal Reserve Bulletin • December 1988

banking organizations to evolve with technology
and the market, and would provide real public
benefits from increased competition and from
possible economies of scale and scope. Maintenance of the current environment, on the other
hand, will force us to incur unnecessary costs as
the specialized resources of banking organizations are transferred into other activities or businesses—not because of banks' unwillingness to
compete or innovate, but simply because of an
inflexible statutory and regulatory structure. In
response to these concerns, the Board has permitted bank holding companies to engage in
certain hitherto ineligible securities activities in a
separate subsidiary of the holding company.
However, clarifying and comprehensive legislation at the federal level clearly is preferable to
regulatory action.
While repeal of Glass-Steagall is certainly one
of the Board's highest priorities, it is worth
recalling that such an action raises public policy
concerns. These concerns relate to preventing
the transfer of increased risk to the bank, to
protecting impartiality in the granting of credit,
and to preventing extension of the safety net to
securities activities. In its desire to achieve these
goals, the Board has supported the location of
certain expanded nonbanking activities, including expanded securities powers, in separate subsidiaries of bank holding companies. Successful
implementation of this strategy requires the construction and maintenance of effective "firewalls" between a bank and an affiliated securities
firm. Thus, the Board has required that firewalls
be maintained as a condition of regulatory approval for expanded securities activities; and it
has supported most of the firewall provisions of
the Financial Modernization Act passed by the
Senate. We believe the holding company approach is the best available; that it can be tested
in the "real world" of financial institutions; and
that, if it proves as effective as we expect, it
should serve as a foundation on which to build
more generally for the 1990s and beyond.
I would emphasize that we must attempt to
coordinate our policies in such a way that each
can be seen as a piece of an integrated whole. In
particular, the incentives for owners and managers of financial institutions, for the public, and
even for regulators must be consistent within a




given policy and compatible with the incentives
that other regulatory actions provide. It would be
inefficient and counterproductive, for example,
if, on the one hand, we attempted to increase
shareholder discipline on bank holding company
risk-taking by increasing capital requirements,
while, on the other hand, we reduced lenders'
discipline by extending the federal safety net to
holding company debt holders.
The degree of policy coordination I am suggesting is extremely difficult to achieve, in part
because incentives are often complex or subtle
and in part because general policies are sometimes adopted in response to specific events
alone. Indeed, it may be impossible to achieve
complete consistency in some cases because the
goals of policy are themselves contradictory.
However, unless we make a strong effort to be
consistent across market participants and policies, we run the risk of achieving little or no
progress.
More adequate capital, risk-based capital, and
increased securities powers for bank holding
companies would provide a solid beginning for
our efforts to ensure financial stability. These
reforms would not mean, however, that no banks
would fail, or that merger and acquisition activity
would cease. Competitive pressures from international banks, out-of-state domestic organizations, new depository institutions, and nonbank
financial firms will continue and likely increase.
Various sectors of our economy and of the world
economy inevitably will experience unexpected
changes in supply and demand. There will always
be some owners and managers whose fraudulent
behavior or simple incompetence puts their institutions at risk.
These arguments suggest other important policy responses to our changed financial environment. First, the timely closing of insolvent firms
is vital if we are to avoid the misallocations of
credit, the distorted competitive incentives, and
the increased costs to the deposit insurance
funds that result when a failed institution is
allowed to operate with the public's money.
Second, the Federal Reserve supports efforts
to limit deposit insurance protection to depositors in the insured intermediary, and not to
extend protection to the creditors of the parent
holding company. Such efforts correctly focus

Innovation and Regulation of Banks in the 1990s

the protections of the safety net on the depository institution and provide holding company
creditors a strong incentive to control risk-taking
at both the bank and the holding company levels.
Indeed, without a program that places the risk
where the profit potential is—on the private
sector—it is questionable whether we should
empower banking organizations to take on new
risks. To do so would be inconsistent with the
broad policy of increased market discipline that,
as I have argued, must be part of a responsible
public policy that both permits banks to respond
to the changes in the financial environment and
maintains financial stability.
Clearly, the policy responses that I could discuss with you have not been exhausted. I could
have mentioned, for example, the continuing




787

efforts by the Federal Reserve to control risk in
the payments mechanism, or the proposal of
some observers for market-value accounting at
banking organizations. We shall always need
accurate and up-to-date monitoring of the risk
position of individual institutions through the
supervisory process.
However, I believe that the responses I have
outlined today constitute the essential core of
any set of policies designed to deal with the
financial landscape of the 1990s. The future is
inherently uncertain, and we surely shall face
new and unexpected challenges in the years
ahead. I believe that we can face the future with
confidence if we have the wisdom and the will to
lay the proper groundwork.

788

Industrial Production
during last summer's heat wave. At 138.3 percent
of the 1977 average, the total index in September
was 5.5 percent higher than it was a year earlier;
for the third quarter as a whole, production
advanced nearly 7 percent at an annual rate, with
most of the gain occurring early in the quarter.
In market groups, output of consumer goods
declined 0.3 percent in September; production of
consumer energy, mainly electricity for residen-

Released for publication October 14
Industrial production was unchanged in September after having risen 0.2 percent in August and
1.2 percent in July. Output of business equipment continued to rise, and auto production
advanced again in September. Electricity output
fell sharply, however, as usage returned to a
more normal level after the surge that occurred

Ratio scale, 1977= 100
TOTAL INDEX

MANUFACTURING

140

120

_ MATERIALS
Nondurable

100

Durable

Energy

80

160

CONSUMER GOODS

140

L

h- INTERMEDIATE PRODUCTS
Business supplies

120
/

100

J
140

I

Construction supplies

80
FINAL PRODUCTS

MOTOR VEHICLES AND PARTS

Defense and space

200

120

180
100
160
140

80
Consumer goods

120
100

60

80
1982

1984

1986

1988

All series are seasonally adjusted. Latest figures: September.




1982

1984

1986

1988

789

1977 = 100

Percentage change from preceding month

1988

1988

Group
Aug.

May

Sept.

June

July

Aug.

Sept.

Percentage
change,
Sept. 1987
to Sept.
1988

Major market groups
Total industrial production

138.3

138.3

.5

.3

1.2

.2

.0

5.5

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

147.0
145.6
134.6
126.3
137.7
160.3
184.4
151.8
137.7
126.6

146.9
145.5
134.2
126.3
137.2
161.0
183.9
151.8
137.8
126.6

.7
.7
.6
1.9
.2
1.5
-1.3
.5
.9
.3

.2
.3
.2
-.3
.4
.8
-.5
-.3
-.9
.4

.8
.7
.9
.0
1.1
.8
.2
1.0
.5
1.8

.3
.4
.4
.8
.3
.5
-.3
.2
-.4
-.1

.0
.0
-.3
.1
-.4
.5
-.3
.0
.1
.0

5.4
5.6
5.1
6.5
4.7
10.0
-3.1
4.8
4.2
5.8

.1
.2
.0
-.8
2.1

.2
.3
.2
.2
-4.3

6.1
7.4
4.3
2.8
.9

Major industry groups
144.0
143.6
144.6
104.7
112.3

143.7
143.2
144.3
104.5
117.4

Manufacturing
Durable
Nondurable
Mining
Utilities

.7
1.3
-.2
-2.0
.6

.2
.1
.4
.3
1.5

1.0
.9
1.3
2.3
1.5

NOTE. Indexes are seasonally adjusted.

tial use and automotive gasoline, declined
sharply. Auto assemblies rose to an annual rate
of 7.4 million units in September from the rate of
7.0 million units in August, but production of
trucks for consumer use fell about 2 percent.
Output of home goods, such as appliances, declined after having increased in the previous two
months.
All major components of business equipment
posted gains in September, with the largest rise
again occurring in manufacturing equipment;
over the past year, business equipment has expanded 10 percent. Production of construction
supplies, which has been sluggish, on balance,
Total industrial production—Revisions
Estimates as shown last month and current estimates

Index (1977=100)
Month

Percentage change
from previous
months

Previous
June
July
August
Sept

Current

Previous

Current

136.5
137.9
138.2

136.5
138.1
138.3
138.3

.3
1.0
.2

.3
1.2
.2
.0




since the first quarter, was little changed in
September. Output of total materials was unchanged, as gains in both durables and nondurables were offset by a sharp drop in energy
materials. Among durables, production of parts
for both consumer durables and for equipment
rose, but basic metals, notably steel, declined.
Within nondurables, chemical materials advanced further, while textiles and paper were
little changed. The decline in energy materials
reflected the curtailment of electricity generation.
In industry groups, manufacturing output increased 0.2 percent in September, with the most
significant gains occurring in nonelectrical machinery, autos, and chemicals; however, steel
production fell again after having risen sharply in
July. Mining output rose 0.2 percent in September, as coal production advanced. Production at
utilities declined more than 4 percent, reflecting
the plunge in electricity generation.

790

Announcements
NEW ECONOMIC
MEASURES
ANNOUNCED BY THE
GOVERNMENT OF MEXICO

The U.S. Treasury Department and the Federal
Reserve welcome the economic measures recently announced by the government of Mexico.
The U.S. financial authorities believe that these
measures build upon the progress already
achieved in the sustained adjustment effort undergone by the Mexican economy. Mexico's
adjustment record, particularly the process of
fiscal consolidation and the structural transformation of its external sector, has established the
basic conditions for the renewal of sustained
economic growth.
In the context of normal consultations between
countries with close economic relations, the U.S.
and Mexican authorities have agreed that Mexico's strengthened economic policies merit support. Accordingly, the U.S. Treasury and the
Federal Reserve are prepared to develop a shortterm bridge loan of up to $3.5 billion, depending
on the development of loan programs by Mexico
with the World Bank and with the International
Monetary Fund.

FINAL RULING
UNDER
EXPEDITED FUNDS AVAILABILITY

ACT

The Federal Reserve Board issued on October
26, 1988, a final ruling under the Expedited
Funds Availability Act stating that "payable
through" checks must be treated as local or
nonlocal based on the location of the institution
on which they are written rather than the location
of the "payable through" bank. This action
finalized an interim amendment that was adopted
by the Board in August in response to a court
order.
At the same time, the Board published for
public comment four proposals that are designed




to help ease the operational difficulties and lessen
the risks imposed on depository institutions as a
result of the court's order. Comment on the
proposals is requested by December 30, 1988.
The Board also requested comment by December 30 on other amendments to Regulation CC
that would clarify various provisions of the regulation and help depository institutions to understand and comply with the regulation.

FEE SCHEDULES AVAILABLE
SERVICES PROVIDED BY
FEDERAL RESERVE
BANKS

FOR

The Federal Reserve Board announced on November 1, 1988, the 1989 fee schedules for services provided by the Reserve Banks. The majority of the 1989 fees are the same as those
currently imposed, and they generally become
effective January 1, 1989.
The fee schedules apply to check collection,
automated clearinghouse transactions, wire
transfer of funds and net settlement, definitive
safekeeping, noncash collection, book-entry, and
check payor bank services. The 1989 fee schedules are available from the Reserve Banks.
In 1989, total costs for priced services, including the private sector adjustment factor (PSAF),
are projected to be $684.9 million. Total revenue
is estimated at $707.8 million, resulting in a 103.4
percent recovery rate.
The 1989 recovery rate may be optimistic
because costs for check services may be higher
than anticipated as a result of the impact of the
Expedited Funds Availability Act and Regulation
CC on Reserve Bank operations. The proposed
fees for 1989 are based on total costs, including
the PSAF, but exclude special project costs.
At the same time, the Board approved the 1989
PSAF for Reserve Bank priced services of $69.7
million, a reduction of $6.5 million or 8.5 percent
from the $76.2 million targeted for 1988.

791

The PSAF is an allowance for the taxes that
would have been paid and the return on capital
that would have been provided had the Federal
Reserve's priced services been furnished by a
private business firm.
REVISED LIST OF OTC STOCKS SUBJECT
TO MARGIN REGULATIONS
NOW
AVAILABLE

The Federal Reserve Board published on October 28, 1988, a revised list of over-the-counter
(OTC) stocks that are subject to its margin regulations, effective November 14, 1988.
This revised List of Marginable OTC Stocks
supersedes the List of Marginable OTC Stocks
that was effective on August 8, 1988. The
changes that have been made to the list, which
now includes 3,113 OTC stocks, are as follows:
96 stocks have been included for the first time, 85
under National Market System (NMS) designation; 62 stocks previously on the list have been
removed for substantially failing to meet the
requirements for continued listing; 68 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
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 1989.
Besides 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 ANNUAL STATISTICAL
DIGEST, 1987

cial, 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 1987
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 the
Board of Governors of the Federal Reserve System, P.O. Box 27531, Richmond, VA 232617531.
CHANGES




STAFF

The Board of Governors has announced the
promotion of Stephen R. Malphrus from Associate Director to Deputy Executive Director in the
Office of the Executive Director for Information
Resources Management, effective October 23,
1988.
The Board also announced the resignation of
Elliott McEntee, Associate Director, Division of
Federal Reserve Bank Operations, effective November 14.
SYSTEM MEMBERSHIP:
STATE BANKS

ADMISSION

OF

The following state banks were admitted to membership in the Federal Reserve System during the
period September 1 through October 31, 1988:
Florida
Live Oak
Ocala
Port Charlotte
. .
T/ .
Virginia

The Annual Statistical Digest, 1987 is now available. This one-year Digest is designed as a compact source of economic, and especially finan-

IN BOARD

Citizens Bank of Live Oak
Independent Bank of Ocala
Community Bank
of Charlotte

Arlington
Bank of Northern Virginia
Herndon
Bank of Potomac, Incorporated
Virginia Beach
Resource Bank

793

Legal Developments
FINAL RULE—AMENDMENT
G, T, U AND X

TO

REGULATIONS

The Board of Governors is amending 12 C.F.R. Parts
207, 220, 221 and 224, its Securities Credit Transactions; List of Marginable OTC Stocks. The List of
Marginable OTC Stocks is comprised of stocks traded
over-the-counter (OTC) that have been determined by
the Board of Governors of the Federal Reserve System to be subject to the margin requirements under
certain Federal Reserve regulations. The List is published four times a year by the Board as a guide for
lenders subject to the regulations and the general
public. This document sets forth additions to or deletions from the previously published List effective
August 8, 1988, and will serve to give notice to the
public about the changed status of certain stocks.
Effective November 14, 1988, accordingly, pursuant
to the authority of sections 7 and 23 of the Securities
Exchange Act of 1934, as amended (15 U.S.C. §§ 78g
and 78w), and in accordance with 12 C.F.R.
§§ 207.2(k) and 207.6(c) (Regulation G), 12 C.F.R.
§§ 220.2(s) and 220.17(c) (Regulation T), and
12 C.F.R. §§ 221.2(j) and 221.7(c) (Regulation U),
there is set forth below a listing of deletions from and
additions to the Board's List:
Deletions from List
Stocks Removed for Failing Continued Listing
Requirements
Alaska Bancorporation: $.01 par common
Amcole Energy Corporation: $.01 par common
American First Corporation: $1.00 par common
American Health Companies, Inc.: $.01 par common
American Telemedia Network, Inc.: No par common
Anchor Financial Corporation: $6.00 par common
Bancoklahoma Corporation: $2.00 par common
Bercor, Inc.: No par common
Bildner, J. Sons, Inc.: $.01 par common
Bioplasty, Inc.: $.01 par common
Butler, John O., Company: $.01 par common
Calstar, Inc.: $.10 par common



Camera Platforms International, Inc.: $.005 par common
CCA Industries, Inc.: Class A, warrants (expire
06-30-89)
Chief Automotive Systems, Inc.: $.10 par common
Coated Sales, Inc.: $.01 par common
Computer Microfilm Corporation: $.25 par common
Corvus Systems: No par common
Crazy Eddie, Inc.: 6% convertible subordinated debentures
Decor Corporation: $.01 par common
Dewey Electronics Corporation: $.01 par common
DNA Plant Technology Corp.: Warrants (expire
01-17-90)
Eagle Telephonies, Inc.: Class A, warrants (expire
10-12-88)

Empire Insurance Company: $1.00 par common
Endotronics, Inc.: No par common
Finest Hour, Inc.: No par common
First World Cheese, Inc.: Warrants (expire 06-06-91)
Fountain Powerboat Industries, Inc.: Warrants (expire
12-15-91)
Gateway Medical Systems, Inc.: $.10 par common
Gemcraft, Inc.: $.10 par common
General Physics Corporation: $.025 par common
Geneve Capital Group, Inc.: $.10 par common
Healthways Systems, Inc.: $.01 par common
HITK Corporation: $.001 par common
Infinity Broadcasting Corp.: Class A, $.01 par common
Intel Corporation: Warrants (expire 08-15-88)
International Robomation/Intelligence: No par common
Invention, Design, Engineering Associates, Inc.:
$.01 par common
Knutson Mortgage Corporation: $.01 par common
Medmaster Systems, Inc.: Warrants (expire 07-10-91)
Memory Metals, Inc.: $.01 par common
Microwave Filter Company, Inc.: $.10 par common

794

Federal Reserve Bulletin • December 1988

North American Holding Corp.: $.01 par common,
Class A, non-voting, $.001 par common
Pay ' Save, Inc.: $1.00 par common
Precision Target Marketing, Inc.: $.01 par common,
Warrants (expire 08-23-89)

Datametrics Corporation: No par common
Daxor Corporation: $.01 par common
Diagnostic Products Corporation: No par common
Diasonics, Inc.: No par common
Dresher, Inc.: $.01 par common

Quality Systems, Inc.: $.01 par common
Ramtek Corporation: $.01 par common
Ritzy's, G. D., Inc.: No par common
Saratoga Standardbreds, Inc.: $.01 par common
Scientific Micro Systems, Inc.: $.01 par common
Sooner Defense of Florida, Inc.: $.01 par common
Southern Hospitality Corporation: $.081/3 par common
Thermal Profiles, Inc.: $.01 par common
Trans World Airlines, Inc.: $6.00 par cumulative,
exchangeable preferred
United Financial Group, Inc.: No par common
Vanzetti Systems Inc.: $.01 par common
Vega Biotechnologies, Inc.: $.01 par common
Virgin Group, PLC: American Depository Receipts
Webb, Del E., Corporation: Warrants
02-01-90)
Wessex Corp.: $.01 par common

Concurrent Computer Corporation: $.01 par common
Crosby, Philip Associates, Inc.: $.01 par common
Crystal Oil Company: $.01 par common, $.01 par
convertible, preferred
Cyprus Minerals Company: No par common

(expire

Energas Company: No par common
Epsco, Inc.: $1.00 par common
Farm Fresh, Inc.: $.01 par common
First Kentucky National Corporation: No par common
First Union Corporation: $3.33V3 par common
Freedom Federal Savings Bank (Illinois): $.01 par
common
Frozen Food Express Industries, Inc.: $1.50 par common
Gartner Group, Inc., The: $.01 par common
Grandview Resources, Inc.: No par common
Hooper Holmes, Inc.: $.01 par common
Hunter-Melnor, Inc.: $.01 par common
IEC Electronics Corporation: $.05 par common

Stocks Removed for Listing on a National
Securities Exchange or Being Involved in an
Acquisition
Albany International Corp.: Class A, $.001 par common
Amcast Industrial Corporation: No par common
Baker, Fentress & Company: $1.00 par common
Bear Automotive Service Equipment Co.: $.01 par
common
Berkline Corporation, The: $1.00 par common
Beverly Savings Bank (Massachusetts): $.10 par common
BIW Cable Systems, Inc.: $.40 par common
Brougher Insurance Group, Inc.: No par common
Capital Wire & Cable Corporation: No par common
Central Pacific Corporation: No par common
Century Communications Corp.: Class A, $.01 par
common
Century Papers, Inc.: $1.00 par common
Command Airways, Inc.: $.01 par common
Comprehensive Care Corporation: $.10 par common



Josephson International, Inc.: $.05 par common
Lancer Corporation: $.01 par common
Lewis, Palmer G. Company, Inc.: $1.00 par common
Matrix Science Corporation: $.01 par common
Micom Systems, Inc.: $.01 par common
Middleby Corporation, The: $.01 par common
National Guardian Corporation: $.10 par common
Norton Enterprises, Inc.: $.01 par common
P & C Foods, Inc.: $.01 par common
Photronics Corporation: $.10 par common
Shoney's South, Inc.: $.05 par common
Silicon Systems, Inc.: $.01 par common
Simmons Airlines, Inc.: No par common
Southold Savings Bank, The (New York): $1.00 par
common
Southstate Bank for Savings: $.10 par common
Sovran Financial Corporation: $5.00 par common
Spectramed, Inc.: $.01 par common

Legal Developments

SPI Pharmaceuticals, Inc.: $.01 par common
System Industries, Inc.: $.01 par common
Taunton Savings Bank: $.10 par common
TCBY Enterprises, Inc.: $.10 par common
Total Erickson Resources, Ltd.: $.01 par common
Unicare Financial Corp.: No par common
USP Real Estate Investment Trust: $1.00 par shares of
beneficial interest
Welbilt Corporation: $.10 par common
Wellman, Inc.: $.001 par common
Western Federal Savings and Loan Association (California): $1.00 par common
Wings West Airlines, Inc.: No par common
Wyse Technology: No par common
XIDEX Corporation: $.0875 par common, Warrants
(expire 04-16-93)
Zondervan Corporation, The: $1.00 par common

795

Chemical Financial Corp.: $10.00 par common
Cliffs Drilling Company: No par, convertible, exchangeable preferred stock
Colorocs Corporation: Class C, warrants (expire
03-31-89)—Class D, warrants (expire 10-25-88)
Concord Camera Corp.: No par common
Constar International, Inc.: Warrants (expire
11-13-89)
Convergent Solutions, Inc.: $.01 par common, Warrants (expire 05-15-92)
Coral Gold Corporation: No par common
Cornucopia Resources Ltd.: No par common
Corporate Data Sciences, Inc.: No par common
Critical Industries, Inc.: $.001 par common
Dekalb Genetics Corporation: Class B, no par common
DF Southeastern, Inc.: $1.00 par common
Eagle Bancorp, Inc.: $.10 par common
Eastland Financial Corp.: $.01 par common
Environmental Control Group, Inc.: $.10 par common
Essex County Gas Company: $2.50 par common

Additions to the List
ADT Limited: American Depository Receipts
All American Semiconductor, Inc.: $.01 par common
American Continental Corporation: $1.00 par, exchangeable preferred
American Power Conversion Corporation: $.01 par
common
ARIX Corporation: No par common
Asiamerica Equities, Inc.: $1.00 par common
Assix International, Inc.: $.001 par common, Warrants (expire 07-19-91)
Associated Natural Gas Corporation: $.10 par common
B & H Bulk Carriers, Ltd.: $.01 par common
Babbage's, Inc.: $.10 par common
Bailey Corporation: $.10 par common
BI Incorporated: No par common
Biogen, Inc.: Warrants (expire 06-30-94)
BMC Software, Inc.: $.01 par common
Candela Laser Corporation: $.01 par common
Casual Male Corporation, The: $.01 par common
Cellular, Inc.: $.001 par common
Centennial Beneficial Corp.: No par common
Ceramics Process Systems Corporation: $.01 par common
Charter Federal Savings Bank (New Jersey): $.01 par
common
Chemex Pharmaceuticals, Inc.: Class 1, warrants (expire 05-20-90)



First Federal Savings Bank of Perry: $1.00 par common
First of Long Island Corporation, The: $.10 par common
Franklin First Financial Corporation: $.01 par common
Genlyte Group Incorporated: $.01 par common
GNI Group, Inc., The: No par common
Goodheart-Willcox Company, Inc.: $ 1.00 par common
Gull Laboratories, Inc.: $.01 par common
Healthwatch, Inc.: No par common
High Plains Corporation: $.10 par common
Home Federal Savings Bank (South Carolina):
$1.00 par common
Home Port Bancorp, Inc.: $.10 par common
Imagine Films Entertainment, Inc.: $.01 par common
Intercargo Corporation: $1.00 par common
Intervoice, Inc.: No par common
Kinder-Care Learning Centers, Inc.: $.01 par common
KWIK Products International Corporation: No par
common
Landmark American Corporation: $.01 par common
Landmark Graphics Corporation: $.05 par common
Long Island City Financial Corporation, The: $.10 par
common

796

Federal Reserve Bulletin • December 1988

Mayflower Financial Corporation: $.01 par common
Micro America, Inc.: $.01 par common
Nalcap Holdings, Inc.: No par common
National Media Corporation: $.10 par common
Neorx Corporation: $.02 par common
Novellus Systems, Inc.: No par common
Olympic Savings Bank (Washington): $1.00 par common
Pancretec, Inc.: No par common
Phoenix Technology Ltd.: $.001 par common
Pride Petroleum Services, Inc.: No par common
Ratners Group, PLC: American Depository Receipts
Reliable Life Insurance Company, The: Class A,
$1.00 par common
Rock Financial Corporation: $3.33 par common
Scientific Technologies, Incorporated: No par common
Selfix, Inc.: $.01 par common
Showscan Film Corporation: $.001 par common
Sierra On-Line, Inc.: $.01 par common
Silk Greenhouse, Inc.: $.01 par common
Smithfield Companies, Inc., The: No par common
Software Toolworks, Inc., The: $.01 par common
Stake Technology Ltd.: No par common
Stotler Group Inc.: $1.00 par common
Strictpfab, Inc.: $.02 par common
Synoptics Communications, Inc.: No par common
Tele-Optics, Inc.: $.01 par common, Warrants (expire
08-11-89)
Tons of Toys, Inc.: $.01 par common
Tuscarora Plastics, Inc.: No par common

AMENDMENT

TO REGULATION

CC

The Board of Governors is amending 12 C.F.R. Part
229, its Regulation CC (Availability of Funds and
Collection of Checks). The Board is adopting as a final
rule, with minor technical changes, the interim amendment to Regulation CC it adopted in August. The
Board adopted the interim rule to conform the definition of "paying bank" in Regulation CC to the Expedited Funds Availability Act as interpreted by a court
decision. The court found that in defining a payable
through bank as the paying bank where a check is
written on one bank but payable through another,
Regulation CC was inconsistent with the language of
the Act.
Effective October 25, 1988, 12 C.F.R. Part 229 is
amended as follows:
Part 229—Availability of Funds and Collection
of Checks
1. The authority citation for Part 229 continues to read
as follows:
Authority: Title VI of Pub. L. 100-86, 101 Stat. 552,
635; 12 U.S.C. 4001 et seq.
2. Section 229.2(z)(4) is revised to read as follows:
Section 229.2—Definitions

(z) * * *
(4) The bank through which a check is payable and
to which it is sent for payment or collection, if the
check is not payable by a bank; or

Section 229.16—[Amended]
Unigene Laboratories, Inc.: $.01 par common, Warrants (expire 08-11-92)
United National Bancorp: $2.50 par common
Unitronix Corporation: No par common
VMS Mortgage Investors, L. P. Ill: Depository units
of limited partnership interest
Washington Savings Bank, F.S.B. (Maryland):
$.01 par common
Weitek Corporation: No par common
Wetterau Properties, Inc.: $.01 par common
Wholesale Club, Inc., The: No par convertible preferred



3. Section 229.16(b)(2) is amended by adding after the
first sentence of the footnote the following new sentence to read as follows:
1 * * * A bank that makes funds from nonlocal checks
available for withdrawal within the time periods required
for local checks under §§ 229.11, 229.12, and 229.13 is not
required to provide this disclosure on payable through
checks to its customers. * * *

4. Appendix E—Commentary to Part 229, is amended
by adding following the fourth paragraph of the Commentary to § 229.16(b) a new paragraph to read as
follows:

Legal Developments

Appendix E—Commentary

797

Appendix F—Official Board Interpretations;
Preemption Determinations

Section 229.16—Specific Availability Policy
Disclosures

California
Background

(b) * * *
Generally, a bank that distinguishes in its disclosure
between local and nonlocal checks based on the routing number on the check must disclose to its customers that certain checks, such as some credit union
payable through drafts, will be treated as local or
nonlocal based on the location of the bank by which
they are payable (e.g., the credit union), and not on the
basis of the location of the bank whose routing number
appears on the check. A bank is not required to
provide this disclosure, however, if it makes the
proceeds of both local and nonlocal checks available
for withdrawal within the time periods required for
local checks in §§ 229.11, 229.12, and 229.13.

*

AMENDMENT

*

*

*

*

TO REGULATION

CC

The Board of Governors is amending 12 C.F.R. Part
229, its Regulation CC (Availability of Funds and
Collection of Checks), for the laws of California,
Connecticut, Maine, Massachusetts, New Mexico,
New York, and Rhode Island. The Expedited Funds
Availability Act provides standards for determining
whether state law governing funds availability supersedes, or is preempted by, federal law. Under Regulation CC, the Board will issue preemption determinations with respect to state law upon request.
Effective October 25, 1988, 12 C.F.R. Part 229 is
amended as follows:
Part

229—[Amended]

1. The authority citation for Part 229 continues to read
as follows:
Authority: Title VI of Pub. L. 100-86, 101 Stat. 552,
635, 12 U.S.C. 4001 et seq.
2. Appendix F is amended by removing the New York
preemption determination, and adding preemption determinations for the states of California, Connecticut,
Maine, Massachusetts, New Mexico, New York, and
Rhode Island alphabetically to read as follows:



The Board has been requested, in accordance with
§ 229.20(d) of Regulation CC (12 C.F.R. Part 229), to
determine whether the Expedited Funds Availability
Act (the "Act") and Subpart B (and in connection
therewith, Subpart A) of Regulation CC preempt the
provisions of California law concerning availability of
funds. This preemption determination specifies those
provisions of the California funds availability law that
supersede the Act and Regulation CC. (See also the
Board's preemption determination regarding the Uniform Commercial Code, § 4-213(5), pertaining to
availability of cash deposits.)
California has four separate sets of regulations establishing maximum availability schedules. The regulations applicable to commercial banks and branches
of foreign banks located in California (Cal. Admin.
Code tit. 10, §§ 10.190400-10.190407) were promulgated by the Superintendent of Banks. The regulations
applicable to savings banks and savings and loan
associations (Cal. Admin. Code tit. 10, §§ 106.200106.205) were adopted by the Savings and Loan Commissioner. The regulations applicable to credit unions
(Cal. Admin. Code tit. 10, § 901) and to industrial loan
companies (Cal. Admin. Code tit. 10, § 1101) were
adopted by the Commissioner of Corporations.
All the regulations were adopted pursuant to California Financial Code § 866.5 and California Commercial Code § 4213(4)(a), under which the appropriate
state regulatory agency for each depository institution
must issue administrative regulations to define a reasonable time for permitting customers to draw on
items received for deposit in the customer's account.
California Financial Code § 867 also establishes availability periods for funds deposited by cashier's check,
certified check, teller's check, or depository check
under certain circumstances. Finally, California Financial Code § 866.2 establishes disclosure requirements.
The Board's determination with respect to these
California laws and regulations governing the funds
availability requirements applicable to depository institutions in California are as follows.
Commercial Banks and Branches of Foreign Banks
[RESERVED]

798

Federal Reserve Bulletin • December 1988

Savings Institutions
[RESERVED]
Credit Unions and Industrial Loan Companies
Each credit union and federally-insured industrial loan
company that maintains an office in California for the
acceptance of deposits must make funds deposited by
check available for withdrawal in accordance with the
following table:
Availability

Credit Union

$100 or less checks; U.S. Treasury
checks; state/local government
checks;
On us checks; cashier's/certifies/
teller's/depository checks
Out-of-state checks

Industrial
Loan
Company

1st day

1st day

2nd day
6th day
10th day

2nd day
6th day
12th day

NOTE: These time periods are stated in terms of availability for
withdrawal not later than the Xth business day following the banking
day of deposit to facilitate comparison with Regulation CC. State
regulations are stated in terms of availability at the start of the
business day subsequent to the number of days specified in the
regulation.

Coverage
The California law and regulations govern the availability of funds to "demand deposits, negotiable order
of withdrawal draft accounts, savings deposits subject
to automatic transfers, share draft accounts, and all
savings deposits and share accounts, other than time
deposits." (California Financial Code § 886(b)). The
federal preemption of state funds availability laws only
applies to "accounts" subject to Regulation CC,
which generally includes transaction accounts. Thus,
the California funds availability regulations continue
to apply to deposits in savings and other accounts
(such as accounts in which the account-holder is
another bank) that are not "accounts" under Regulation CC. (Note, however, that under § 229.19(e) of
Regulation CC, Holds on other funds, the federal
availability schedules may apply to savings, time, and
other accounts not defined as "accounts" under Regulation CC in certain circumstances.)
The California law applies to any "item" (California
Financial Code § 866.5 and California Commercial
Code § 4213 (4)(a)). The California Commercial Code
defines "item" to mean "any instrument for the payment of money even though it is not negotiable . . . "
(Cal. Com. Code § 4104(g)). This term is broader in



scope than the definition of "check" in the Act and
Regulation CC. The Commissioner's regulations, however, define the term "item" to include checks, negotiable orders of withdrawal, share drafts, warrants,
and money orders. As limited by the state regulations,
the state law applies only to instruments that are also
"checks" as defined in § 229.2(k) of Regulation CC.
Availability Schedules
Temporary Schedule. The California regulations provide that in-state nonlocal checks must be made available for withdrawal not later than the sixth business
day following deposit. This time period is shorter than
the seventh business day availability required for
nonlocal checks under § 229.11(c) of Regulation CC,
although it is not shorter than the schedules for nonlocal checks set forth in $ 229.11(c)(2) and Appendix
B-l of Regulation CC. Thus, the state schedules for
in-state nonlocal checks supersede the federal schedule to the extent that they apply to an item payable by
a California institution that is defined as a nonlocal
check under Regulation CC, and is not subject to
reduced schedules under § 229.11(c)(2) and Appendix
B-l.
Under the California regulations, credit unions and
industrial loan companies must provide next-day availability to first-indorsed items issued by any federallyinsured institution. This regulatory requirement, however, has been superseded by § 867 of the California
Financial Code, which requires depository institutions
to make funds deposited by cashier's check, teller's
check, certified checks, or depository check available
for withdrawal on the second business day following
deposit, if certain conditions are met. This requirement became effective January 1, 1988.
The Regulation CC next-day availability requirement for cashier's checks and teller's checks applies
only to those checks issued for remittance purposes.
To the extent that the state second business day
availability requirement applies to cashier's and teller's checks issued for other than remittance purposes,
the state two-day requirement supersedes the federal
local and nonlocal schedules.
The California regulations do not specify whether
they apply to deposits of checks at nonproprietary
ATMs. Under the temporary schedule in Regulation
CC, deposits at nonproprietary ATMs must be made
available for withdrawal at the start of the seventh
business day after deposit. To the extent that the
California schedules provide for shorter availability
for deposits at nonproprietary ATMs, they would
supersede the temporary schedule in Regulation CC
for deposits at nonproprietary ATMs specified in
§ 229.11(d).

Legal Developments

Permanent schedule. Under the California regulations, credit unions and industrial loan companies
must provide next-day availability to first-indorsed
items issued by any federally-insured institution. This
regulatory requirement, however, has been superseded by § 867 of the California Financial Code,
which requires depository institutions to make funds
deposited by cashier's check, teller's check, certified
check, or depository check available for withdrawal
on the second business day following deposit, if certain conditions are met. This requirement became
effective January 1, 1988.
The Regulation CC next-day availability requirement for cashier's and teller's checks applies only to
those checks issued for remittance purposes. To the
extent that the state second business day availability
requirement applies to cashier's and teller's checks
issued for other than remittance purposes, the state
two-day requirement supersedes the federal local and
nonlocal schedules.
Next-Day Availability. Credit unions and industrial
loan companies in California are required to give
next-day availability to items drawn by the State of
California or any of its departments, agencies, or
political subdivisions. California law supersedes the
federal law in that the state law does not condition
next-day availability on receipt at a staffed teller
station or use of a special deposit slip.
California credit unions and industrial loan companies must provide second business day availability to
checks drawn on the depositary bank. Regulation CC
requires next-day availability for checks deposited in a
branch of the depositary bank and drawn on the same
or another branch of the same bank if both branches
are located in the same state or the same check
processing region. Thus, generally, the Regulation CC
rule for availability of on us checks preempts the
California regulations. To the extent, however, that an
on us check is (1) drawn on an out-of-state branch of
the depositary bank that is not in the same check
processing region as the branch in which it was deposited, or (2) deposited at an off-premises ATM or
another facility of the depositary bank that is not
considered a branch under federal law, the state
regulation supersedes the Regulation CC availability
requirements.
Exceptions to the Availability Schedules. California
law provides exceptions to the state availability schedules for large deposits, new accounts, repeated overdrafters, doubtful collectibility, foreign items, and
emergency conditions. In all cases where the federal
availability schedule preempts the state schedule, only
the federal exceptions will apply. For deposits that are
covered by the state availability schedule (e.g., in


799

state nonlocal checks under the temporary schedule;
cashier's or teller's checks that are not deposited with
a special deposit slip or at a staff teller station), the
state exceptions may be used to extend the state
availability schedule up to the federal availability
schedule. Once the deposit is held up to the federal
availability limit under a state exception, the depositary bank may further extend the hold under any
federal exception that can be applied to the deposit.
Any time a depositary bank invokes an exception to
extend a hold beyond the time periods otherwise
permitted by law, it must give notice of the extended
hold to its customer in accordance with § 229.13(g) of
Regulation CC.
Business Day/Banking Day. The definitions of "business day" and "banking day" in the California regulations are preempted by the Regulation CC definition
of those terms. Thus, for determining the permissible
hold under the California schedules that supersede the
Regulation CC schedule, deposits are considered
made on the specified number of "business days"
following the "banking day" of deposit.
Disclosures
California law (Cal. Fin. Code § 866.2) requires depository institutions to provide written disclosures of their
general availability policies to potential customers
prior to opening any deposit account. The law also
requires that preprinted deposit slips and ATM deposit
envelopes contain a conspicuous summary of the
general policy. Finally, the law requires a depository
institution to provide specific notice of the time the
customer may withdraw funds deposited by check or
similar instrument into a deposit account if the funds
are not available for immediate withdrawal.
Section 229.20(c)(2) of Regulation CC provides that
inconsistency may exist when a state law provides for
disclosures or notices concerning funds availability
relating to accounts. California Financial Code § 866.2
requires disclosures that differ from those required by
Regulation CC, and therefore is preempted to the
extent that it applies to "accounts" as defined in
Regulation CC. The state law continues to apply to
savings accounts and other accounts not governed by
Regulation CC disclosure requirements.
Connecticut
Background
The Board has been requested, in accordance with
§ 229.20(d) of Regulation CC (12 C.F.R. Part 229), to
determine whether the Expedited Funds Availability

800

Federal Reserve Bulletin • December 1988

Act (the "Act") and Subpart B (and in connection
therewith, Subpart A) of Regulation CC, preempt
provisions of Connecticut law relating to the availability of funds. This preemption determination specifies
those provisions of the Connecticut funds availability
law that supersede the Act and Regulation CC. (See
also the Board's preemption determination regarding
the Uniform Commercial Code, § 4-213(5), pertaining
to availability of cash deposits.)
In 1987, Connecticut amended its statute governing
funds availability (Conn. Gen. Stat. § 36-9v), which
requires Connecticut depository institutions to make
funds deposited in a checking, time, interest, or savings account available for withdrawal within specified
periods.
Generally, the Connecticut statute, as amended,
provides that items deposited in a checking, time,
interest, or savings account at a depository institution
must be available for withdrawal in accordance with
the following table:

Availability

Out-of-state checks

2nd day
4th day
6th day

Exceptions to the schedules are provided for items
received for deposit for the purpose of opening an
account and for items that the depositary bank has
reason to believe will not clear. The Connecticut
statute also requires availability policy disclosures to
depositors in the form of written notices and notices
posted conspicuously at each branch.
Coverage
The Connecticut statute governs the availability of
funds deposited in savings and time accounts, as well
as "accounts" as defined in § 229.2(a) of Regulation
CC. The federal preemption of state funds availability
requirements only applies to "accounts" subject to
Regulation CC, which generally consist of transaction
accounts. Regulation CC does not affect the Connecticut statute to the extent that the state law applies to
deposits in savings and other accounts (including
transaction accounts where the account holder is a
bank, foreign bank or the U.S. Treasury) that are not
"accounts" under Regulation CC. (Note, however,
that under § 229.19(e) of Regulation CC, Holds on
other funds, the federal availability schedules may
apply to savings, time, and other accounts not defined



as "accounts" under Regulation CC, in certain circumstances.)
The Connecticut statute applies to "items" deposited in accounts. This term encompasses instruments
that are not defined as "checks" in Regulation CC
(§ 229.2(k)), such as nonnegotiable instruments, and
are therefore not subject to Regulation CC's provisions governing funds availability. Those items that
are subject to Connecticut law but are not subject to
Regulation CC will continue to be covered by the state
availability schedules and exceptions.
Availability Schedules
Temporary Schedule. Connecticut law provides that
certain checks that are nonlocal under Regulation CC
must be available in a shorter time (sixth business day
after deposit for checks payable by depository institutions not located in Connecticut) than under the federal regulation (seventh business day after deposit
under the temporary schedule for nonlocal checks).
Accordingly, the Connecticut law supersedes Regulation CC with respect to nonlocal checks (other than
checks covered by Appendix B-l) deposited in
"accounts" until the federal permanent availability
schedules take effect on September 1, 1990.
The Connecticut statute does not specify whether it
applies to deposits of checks at nonproprietary ATMs.
Under the temporary schedule in Regulation CC,
deposits at nonproprietary ATMs must be made available for withdrawal at the start of the seventh business
day after deposit. To the extent that the Connecticut
schedules provide for shorter availability for deposits
at nonproprietary ATMs, they would supersede the
temporary schedule in Regulation CC for deposits at
nonproprietary ATMs specified in § 229.11(d).
Exceptions to the Availability Schedule. The Connecticut law provides exceptions for items received for
deposit for the purpose of opening new accounts and
for items that the depositary bank has reason to
believe will not clear. In all cases where the federal
availability schedule preempts the state schedule, only
the federal exceptions will apply. For deposits that are
covered by the state availability schedule (e.g., nonlocal out-of-state checks under the temporary schedule), the state exceptions may be used to extend the
state availability schedule (of six business days) to
meet the federal availability schedule (of seven business days). Once the deposit is held up to the federal
availability schedule limit under a state exception, the
depositary bank may further extend the hold under
any federal exception that can be applied to the
deposit. Any time a depositary bank invokes an exception to extend a hold beyond the time periods

Legal Developments

otherwise permitted by law, it must give notice of the
extended hold to its customer, in accordance with
§ 229.13(g) of Regulation CC.
Disclosures
The Connecticut statute (Conn. Gen. Stat. § 36-9v(b))
requires written notice to depositors of an institution's
check hold policy and requires a notice of the policy to
be posted in each branch.
Regulation CC preempts state disclosure requirements concerning funds availability that relate to
"accounts" that are inconsistent with the federal
requirements. The state requirements are different
from, and therefore inconsistent with, the federal
disclosure rules. (§ 229.20(c)(2)). Thus, the Connecticut statute is preempted by Regulation CC to the
extent that these disclosure provisions apply to
"accounts" as defined by Regulation CC. The Connecticut disclosure rules would continue to apply to
accounts, such as savings and time accounts, not
governed by the Regulation CC disclosure requirements.

801

must be made available for withdrawal in accordance
with the Act and Regulation CC (Regulation 18IV(A)(1)). The state regulation provides that an institution's funds availability policies for accounts subject
to Regulation CC be disclosed in a manner consistent
with the Regulation CC requirements. Funds availability policies for accounts not subject to Regulation CC
must be disclosed in accordance with the state regulation (Regulation 18-IV(A)(2)).
Coverage
The Maine law and regulation govern the availability
of funds to any deposit account, as defined in the
Board's Regulation D (12 C.F.R. 204.2(a)). This coverage is broader than the "accounts" covered in
Regulation CC. The Maine law continues to apply to
all deposit accounts, including those that are not
accounts under Regulation CC. (Note, however, that
under § 229.19(e) of Regulation CC, Holds on other
funds, the federal availability schedules may apply to
savings, time, and other accounts not defined as
"accounts" under Regulation CC, in certain circumstances.)

Maine
Background
The Board has been requested, in accordance with
§ 229.20(d) of Regulation CC (12 C.F.R. Part 229), to
determine whether the Expedited Funds Availability
Act (the "Act") and Subpart B (and in connection
therewith, Subpart A) of Regulation CC, preempt the
provisions of Maine law concerning the availability of
funds. This preemption determination addresses the
relation of the Act and Regulation CC to the Maine
funds availability law. (See also the Board's preemption determination regarding the Uniform Commercial
Code, § 4-213(5), pertaining to availability of cash
deposits.)
In 1985, Maine adopted a statute governing funds
availability (Title 9-B MRSA § 241(5)), which requires
Maine financial institutions to make funds deposited in
a transaction account, savings account, or time account available for withdrawal within a reasonable
period. The Maine statute gives the Superintendent of
Banking for the State of Maine the authority to promulgate rules setting forth time limitations and disclosure requirements governing funds availability.
The Superintendent of Banking issued regulations
implementing the Maine funds availability statute,
effective July 1,1987 (Regulation 18(IV)), and adopted
amendments to this regulation, effective September 1,
1988. Under the revised regulation, funds deposited to
any deposit account in a Maine financial institution



Availability Schedules and Disclosures
The Maine regulation incorporates the Regulation CC
availability and disclosure requirements with respect
to deposits to accounts covered by Regulation CC.
Because the state requirements are consistent with the
federal requirements, the Maine regulation is not preempted by, nor does it supersede, the federal law.
Massachusetts
Background
The Board has been requested, in accordance with
§ 229.20(d) of Regulation CC (12 C.F.R. Part 229), to
determine whether the Expedited Funds Availability
Act (the "Act") and Subpart B (and in connection
therewith, Subpart A) of Regulation CC, preempt
provisions of Massachusetts law relating to the availability of funds. This preemption determination addresses the relationship of the Act and Regulation CC
to the Massachusetts funds availability law. (See also
the Board's preemption determination regarding the
Uniform Commercial Code, § 4-213(5), pertaining to
availability of cash deposits.)
In 1988, Massachusetts amended its statute governing funds availability (Mass. Gen. L. ch. 167D, § 35),
to require Massachusetts banking institutions to make
funds available for withdrawal and disclose their avail-

802

Federal Reserve Bulletin • December 1988

ability policies in accordance with the Act and Regulation CC. The Massachusetts law, however, provides
that "local originating depository institution" is to be
defined as any originating depository institution located in the Commonwealth.
Coverage
The Massachusetts statute governs the availability of
funds deposited in "any demand deposit, negotiable
order of withdrawal account, savings deposit, share
account or other asset account." Regulation CC applies only to "accounts" as defined in § 229.2(a).
Regulation CC does not affect the Massachusetts
statute to the extent that the state law applies to
deposits in savings and other accounts (including
transaction accounts where the account holder is a
bank, foreign bank, or the U.S. Treasury) that are not
"accounts" under Regulation CC. (Note, however,
that under § 229.19(e) of Regulation CC, Holds on
other funds, the federal availability schedules may
apply to savings, time, and other accounts not defined
as "accounts" under Regulation CC, in certain circumstances.)
Availability Schedules
The Massachusetts definition of "local originating
depository institution" (local paying bank in Regulation CC terminology) requires that in-state checks that
are nonlocal checks under Regulation CC be made
available in accordance with the Regulation CC local
schedule. The Massachusetts law supersedes Regulation CC under the temporary and permanent schedule
with respect to nonlocal checks payable by banks
located in Massachusetts and deposited into
"accounts." Regulation CC preempts the Massachusetts law, however, to the extent the state law does not
define banks located outside of Massachusetts, but in
the same check processing region as the paying bank,
as "local originating depository institutions."
Disclosures
The Massachusetts regulation incorporates the Regulation CC disclosure requirements with respect to both
accounts covered by Regulation CC and savings and
other accounts not governed by the federal regulation.
Because the state requirements are consistent with the
federal requirements, the Massachusetts regulation is
not preempted by, nor does it supersede, the federal
law. The Massachusetts disclosure rules would continue to apply to accounts not governed by the Regulation CC disclosure requirements.



New Mexico
Background
The Board has been requested in accordance with
§ 229.20(d) of Regulation CC (12 C.F.R. Part 229), to
determine whether the Expedited Funds Availability
Act (the "Act") and Subpart B (and in connection
therewith, Subpart A) of Regulation CC, preempt
provisions of New Mexico law relating to the availability of funds. This preemption determination specifies those provisions in the New Mexico funds availability law that supersede the Act and Regulation CC.
(See also the Board's preemption determination regarding the Uniform Commercial Code, § 4-213(5),
pertaining to availability of cash deposits.)
In 1987, New Mexico adopted a statute governing
funds availability (N.M. Stat. Ann. § 58-3-4 (1978,
Supp. 1987)), which requires New Mexico financial
institutions to make funds deposited into retail accounts available for withdrawal after a reasonable
period of time. Section 4A of the New Mexico statute
establishes the time frames within which financial
institutions must make funds deposited by checks or
share drafts available for withdrawal if the checks or
share drafts are drawn and payable on demand at other
financial institutions located in the continental United
States. Section 4B of the statute defines terms and
specifies availability for checks deposited in branch
offices of certain financial institutions, § 4C specifies
exceptions to the availability schedules, and § 4D
specifies damages recoverable for a violation of this
statute.
Generally, the New Mexico law provides that
checks and share drafts, other than "on us" checks,
drawn and payable on demand at a financial institution
and deposited into an individual or household account
must be made available for withdrawal at the beginning of the third business day after deposit for checks
or share drafts drawn and payable on demand at
financial institutions located within the same municipality as the depositary bank, and for checks or share
drafts deposited in a branch office of a financial institution if the main office of that financial institution is
located in the same municipality as the depositary
bank. Other in-state checks or share drafts must be
made available at the opening of the fourth business
day after deposit. Checks or share drafts drawn and
payable on demand at any other financial institution
located within continental United States must be made
available at the beginning of the sixth business day
after deposit.
Exceptions to the schedules are provided for documentary drafts, accounts which have been open less
than 60 days, checks or share drafts with two-party

Legal Developments

indorsements, checks or share drafts in an amount
greater than the average balance in the account over
the last 12 months or the average balance since the
account was opened, whichever is less, and checks or
share drafts deposited in an account on which six or
more nonsufficient fund checks or share drafts were
presented in the prior six-month period.
Coverage
The New Mexico statute is limited to retail accounts
and does not apply to business accounts. No portion of
the New Mexico statute supersedes Regulation CC for
any "account" as that term is defined in Regulation
CC that is not held by an individual or household.
Regulation CC does not affect the New Mexico statute
to the extent that the state law applies to time, savings,
and other deposits that are not defined as "accounts"
under Regulation CC. (Note, however, that under
§ 229.19(e) of Regulation CC, Holds on other funds,
the federal availability schedules may apply to savings, time, and other accounts not defined as
"accounts" under Regulation CC, in certain circumstances.)
The New Mexico statute is limited to checks and
share drafts payable by financial institutions. The term
"financial institution" corresponds generally to the
term "bank" in Regulation CC. The terms "check"
and "share draft" are narrower than the term "check"
in Regulation CC because they do not appear to apply
to Treasury checks, checks payable by state or local
governments (i.e., warrants), checks payable by Federal Reserve Banks or Federal Home Loan Banks, or
U.S. Postal Service money orders. No portion of the
New Mexico statute supersedes Regulation CC with
respect to these instruments.
Availability Schedules
Temporary Schedules. The New Mexico statute requires checks and share drafts drawn and payable on
demand at an office of financial institution located in
the same municipality as the depositary bank and
checks and share drafts drawn and payable on demand
at offices of financial institutions located in New Mexico whose main office is located in the same municipality as the depositary bank to be made available at
the opening of the third business day after deposit.
(N.M. Stat. Ann. § 58-3-4A(l)).i New Mexico is

1. It is not clear from the New Mexico statute whether days stated
in the schedules include the day of deposit. For the purposes of this
interpretation, it is assumed that the stated days do include the day of
deposit. References to days included in the New Mexico schedules
have also been revised to reflect Regulation CC terminology.




803

served by two Federal Reserve check processing
regions and, therefore, while most checks and share
drafts subject to this schedule will be local under
Regulation CC, some checks and share drafts covered
by this schedule may be nonlocal under Regulation
CC. Under the temporary schedule in Regulation CC,
the proceeds of local checks must be available for
withdrawal at the start of the third business day after
deposit, but Regulation CC permits a time period
adjustment for withdrawals by cash and similar means
that permits a depositary bank to delay the time it must
make funds available for deposits of local checks
cleared outside a check clearinghouse arrangement.
Under the temporary schedule in Regulation CC, the
proceeds of nonlocal checks must be made available
for withdrawal at the opening of the seventh business
day following deposit. No time period adjustment is
provided. New Mexico law supersedes this time period adjustment for local checks under the temporary
schedule and for nonlocal checks coming within the
portion of the New Mexico schedule calling for availability on the third banking day after deposit.
The New Mexico statute calls for the proceeds of
checks and share drafts to be made available at the
opening of the fifth day after deposit for checks and
share drafts drawn and payable on demand at other
offices of financial institutions located in New Mexico.
(N.M. Stat. Ann. § 58-3-4A(2)). To the extent that
this schedule applies to nonlocal checks as defined by
Regulation CC, it supersedes the temporary schedules
in Regulation CC. The New Mexico statute also provides for availability of checks and share drafts drawn
and payable on demand at financial institutions located
in the continental United States, excluding Alaska,
Hawaii, Puerto Rico, and the U.S. Virgin Islands, at
the opening of the seventh banking day after deposit.
(N.M. Stat. Ann. § 58-3-4A(3)). This schedule is the
same as Regulation CC with respect to nonlocal
checks.
The New Mexico statute does not specify whether it
applies to deposits of checks at nonproprietary ATMs.
Under the temporary schedule in Regulation CC,
deposits at nonproprietary ATMs must be made available for withdrawal at the opening of the seventh
business day after deposit. To the extent that the New
Mexico schedules described above provide for shorter
availability for deposits at nonproprietary ATMs, they
would supersede the temporary schedule in Regulation
CC for deposits at nonproprietary ATMs specified in
§ 229.11(d).
Permanent Schedules. Under the permanent schedule in Regulation CC, the proceeds of checks must be
made available at the opening of the second business
day after deposit for local checks and the fifth business

804

Federal Reserve Bulletin • December 1988

day after deposit for nonlocal checks. Both of these
schedules are subject to time period adjustments for
withdrawal by cash or similar means. The New Mexico statute supersedes the permanent schedules in
Regulation CC for nonlocal checks subject to the
third day withdrawal requirement (N.M. Stat. Ann.
§ 58-3-4A(l)) and the time period adjustment for
nonlocal checks subject to the fifth day withdrawal
requirement (N.M. Stat. Ann. § 58-3-4A(2)) of the
New Mexico statute.

New York
Background

Business Day/Banking Day. Under New Mexico law
a bank is authorized to establish its own banking days
except that it must observe certain holidays (N.M.
Stat. Ann. §§ 58-5-6 and 58-5-7). This definition is
preempted by the Regulation CC definitions of "business day" and "banking day." Thus, for determining
the permissible hold under the New Mexico schedules
that supersede the Regulation CC schedule, deposits
are considered made on the specified number of "business days" following the "banking day" of deposit.

The Board has been requested, in accordance with
§ 229.20(d) of Regulation CC (12 C.F.R. Part 229), to
determine whether the Expedited Funds Availability
Act (the "Act") and Subpart B (and in connection
therewith, Subpart A) of Regulation CC, preempt the
provisions of New York law concerning the availability of funds. This preemption determination addresses
the relation of the Act and Regulation CC to the New
York funds availability law. (See also the Board's
preemption determination regarding the Uniform
Commercial Code, § 4-213(5), pertaining to availability of cash deposits.)
In 1983, the New York State Banking Department,
pursuant to section 14-d of the New York Banking
Law, issued regulations requiring that funds deposited
in an account be made available for withdrawal within
specified time periods, and provided certain exceptions to those availability schedules. Part 34 of the
New York State Banking Department's General Regulations established time frames within which commercial banks, trust companies, and branches of foreign banks ("banks"); and savings banks, savings and
loan associations, and credit unions ("savings institutions") must make funds deposited in customer accounts available for withdrawal.
The Banking Department amended Part 34, effective
September 1, 1988, generally to exclude accounts
covered by Regulation CC from the scope of the state
regulation. Part 34.4(a)(2) and (b)(2) of the revised
New York rules, however, continue to apply to checks
deposited to accounts, as defined in Regulation CC.
These provisions require that the proceeds of nonlocal
checks payable by a New York institution be made
available for withdrawal not later than the start of the
fourth business day following deposit, if deposited in a
bank, or the fifth business day following deposit, if
deposited in a savings institution. The revised regulation also provides that, with respect to savings accounts and time deposits, New York institutions could
elect to comply with either the state or federal availability and disclosure requirements.
This preemption determination supersedes the determination issued by the Board on August 18, 1988
(53 Federal Register 32,357 (August 24, 1988)).

Disclosures

Coverage

The New Mexico law does not contain funds availability disclosure requirements applicable to accounts
subject to Regulation CC.

The New York law and regulation govern the availability of funds in savings accounts and time deposits,
as well as "accounts" as defined in § 229.2(a) of

Exceptions to Availability Schedules. The New
Mexico statute provides for exceptions to the state
schedules for:
(1) documentary drafts;
(2) accounts opened less than 60 days;
(3) checks or share drafts with two-party indorsements;
(4) a check or share draft in a face amount greater
than the average balance of the depositor's account
for the prior 12 months or the average balance since
the account was opened, whichever is less; and
(5) a check or share draft deposited in an account on
which six or more nonsufficient fund checks or
share drafts were presented for payment in the prior
six month period.
The state exceptions will continue to apply when the
state schedules are not preempted Regulation CC, but
holds may be placed under the state schedules only up
to the limits permitted by the Regulation CC schedules. Where the Regulation CC schedules are subject
to exceptions, holds placed on checks under the state
schedules that would also be permissible under Regulation CC may be continued up to the limit on holds
under Regulation CC. Notice of holds as required by
Regulation CC (§ 229.13(g)) must be given whenever a
hold is placed so that availability is extended beyond
the applicable state or federal schedule.




Legal Developments

Regulation CC. The New York law continues to apply
to deposits to savings accounts and time deposits that
are not accounts under Regulation CC. (Note, however, that under § 229.19(e) of Regulation CC, Holds
on other funds, the federal availability schedules may
apply to savings, time, and other accounts not defined
as "accounts" under Regulation CC, in certain circumstances.)
The New York law and regulation apply to "items"
deposited to accounts. Part 34.3(e) defines "item" as
"a check, negotiable order of withdrawal or money
order deposited into an account." The Board interprets the definition of "item" in New York law to be
consistent with the definition of "check" in Regulation
CC (§ 229.2(k)).
Availability Schedules
The provisions of New York law governing the availability of in-state nonlocal items provide for a shorter
hold than is provided under Regulation CC, and supersede the federal availability requirements. With the
exception of these provisions, the New York regulation does not apply to deposits to accounts covered by
Regulation CC.
Temporary Schedule. The time periods for the availability of in-state nonlocal checks, contained in Part
34.4(a)(2) and (b)(2), are shorter than the seventh
business day availability required for nonlocal checks
under § 229.11(c) of Regulation CC, although they are
not necessarily shorter than the schedules for nonlocal
checks set forth in § 229.11(c)(2) and Appendix B-l of
Regulation CC. Thus, these state schedules supersede
the federal schedule to the extent that they apply to an
item payable by a New York bank or savings institution that is defined as a nonlocal check under Regulation CC and the applicable state schedule is less than
the applicable schedule specified in § 229.11(c) and
Appendix B-l.
Permanent Schedule. The New York schedule for
banks supersedes the Regulation CC requirement in
the permanent schedule, effective September 1, 1990,
that nonlocal checks be made available for withdrawal
by the start of the fifth business day following deposit,
to the extent that the in-state checks are defined as
nonlocal under Regulation CC, and the Regulation CC
schedule for nonlocal checks is not shortened under
§ 229.12(c)(2) and Appendix B-2 of Regulation CC. In
addition, the New York schedule for savings institutions supersedes the Regulation CC time period adjustment for withdrawal by cash or similar means in the
permanent schedule, to the extent that the in-state
checks are defined as nonlocal under Regulation CC,



805

and the Regulation CC schedule for nonlocal checks is
not shortened under § 229.12(c)(2) and Appendix B-2.
Exceptions to the Availability Schedules. New York
law provides exceptions to the state availability schedules for large deposits, new accounts, repeated overdrafters, doubtful collectibility, foreign items, and
emergency conditions (Part 34.4). The state exceptions apply only with respect to deposits of in-state
nonlocal checks that are subject to the state availability schedule. For these deposits, the depositary bank
may invoke a state exception and place a hold on the
deposit up to the federal availability schedule limit for
that type of deposit. Once the federal availability
schedule limit is reached, the depositary bank may
further extend the hold under any of the federal
exceptions that apply to that deposit. Any time a
depositary bank invokes an exception to extend a hold
beyond the time periods otherwise permitted by law, it
must give notice of the extended hold to its customer
in accordance with § 229.13(g) of Regulation CC.
Disclosures
The revised New York regulation does not contain
funds availability disclosure requirements applicable
to accounts subject to Regulation CC.
Rhode Island
Background
The Board has been requested, in accordance with
§ 229.20(d) of Regulation CC (12 C.F.R. Part 229), to
determine whether the Expedited Funds Availability
Act (the "Act") and Subpart B (and in connection
therewith, Subpart A) of Regulation CC, supersede
provisions of Rhode Island law relating to the availability of funds. This preemption determination specifies those provisions in the Rhode Island funds availability law that supersede the Act and Regulation CC.
(See also the Board's preemption determination regarding the Uniform Commercial Code, § 4-213(5),
pertaining to availability of cash deposits.)
In 1986, Rhode Island adopted a statute governing
funds availability (R.I. Gen. Laws tit. 6A, §§ 4-601
through 4-608), which requires Rhode Island depository institutions to make checks deposited in a personal transaction account available for withdrawal
within certain specific periods. Commercial banks and
thrift institutions (mutual savings banks, savings
banks, savings and loan institutions and credit unions)
must make funds available for withdrawal in accordance with the following table:

806

Federal Reserve Bulletin • December 1988

Commercial
Banks
Treasury checks, Rhode Island
Government checks,
first-indorsed
In-state, cashier's checks less than
$2,500
On-us checks
In-state clearinghouse checks
In-state nonclearinghouse checks..
1st or 2nd Federal Reserve
District checks (out-of-state)..
Other checks

Thrift
Institutions

2nd

2nd

2nd
2nd
3rd
5th

2nd
3rd
4th
6th

7th
9th

7th
10th

NOTE: These time periods are stated in terms of availability for
withdrawal not later than the Xth business day following the banking
day of deposit to facilitate comparison with Regulation CC. State
regulations are stated in terms of availability at the start of the
business day subsequent to the number of days specified in the
regulation.
The Rhode Island statute also provides restrictions and exceptions
to the schedules and requires institutions to make certain disclosures
to their customers.

Coverage
The Rhode Island statute governs the availability of
funds deposited in "personal transaction accounts," a
term not defined in the statute. The federal law would
continue to apply to "accounts," as defined in
§ 229.2(a), that are not "personal transaction
accounts."
The Rhode Island statute applies to "items," defined as checks, negotiable orders of withdrawal, or
money orders. The Board interprets the definition of
item to be consistent with the definition of "check" in
Regulation CC (§ 229.2(k)).
Availability Schedules
Temporary Schedule. Rhode Island law requires availability for certain checks in the same time as does
Regulation CC. Thus, in these instances, the federal
law does not preempt the state law. Rhode Island law
requires commercial banks (but not thrift institutions)
to make checks payable by a depository institution
that uses the same in-state clearing facility as the
depositary bank available for withdrawal on the third
business day following the day of the deposit. This is
the same time period contained in Regulation CC for
local checks payable by a bank that is a member of the
same local clearinghouse as the depositary bank. (The
Board views the definition of "the same in-state clearing facility" as having the same meaning as the term
"the same check clearinghouse association" in the
federal law's provision that allows banks to limit the
customer's ability to withdraw cash on the third business day if the local check being deposited is payable
by a bank that is not a member of the same local
clearinghouse as the depositary bank.) Since the



Rhode Island law and the federal law both require the
funds to be made available no later than the third
business day, the state law is not preempted by the
federal law.
The Rhode Island law also requires commercial
banks and savings institutions to make checks payable
by a depository institution located in the First or
Second Federal Reserve District (outside of Rhode
Island) available on the seventh business day following
deposit. To the extent that this provision applies to
checks payable by institutions located outside the
Boston check processing region, it provides for availability in the same time as required for nonlocal checks
under the temporary federal schedule, and thus is not
preempted by the federal law.
The Rhode Island statute does not specify whether it
applies to deposits of checks at nonproprietary ATMs.
Under the temporary schedule in Regulation CC,
deposits at nonproprietary ATMs must be made available for withdrawal at the opening of the seventh
business day after deposit. To the extent that the
Rhode Island schedules provide for shorter availability
for deposits at nonproprietary ATMs, they would
supersede the temporary schedule.
Exceptions to the Availability Schedules. The
Rhode Island law contains exceptions for reason to
doubt collectibility or ability of the depositor to reimburse the depositary bank, for new accounts, for large
checks, and for foreign checks. In all cases where the
federal availability schedule preempts the state schedule, only the federal exceptions will apply. For deposits that are covered by the state availability schedule,
the state exceptions may be used to extend the state
availability schedule to meet the federal availability
schedule. Once the deposit is held up to the federal
availability schedule limit under a state exception, the
depositary bank may further extend the hold under
any federal exception that can be applied to the
deposit. Thus, if the state and federal availability
schedules are the same for a particular deposit, both a
state and a federal exception must be applicable to that
deposit in order to extend the hold beyond the schedule. Any time a depositary bank invokes an exception
to extend a hold beyond the time periods otherwise
permitted by law, it must give notice of the extended
hold to its customer, in accordance with § 229.13(g) of
Regulation CC.
Business Day IBanking Day. The Rhode Island statute defines "business day" as excluding Saturday,
Sunday and legal holidays. This definition is preempted by the Regulation CC definitions of "business
day" and "banking day". Thus, for determining the
permissible hold under the Rhode Island schedules
that supersede the Regulation CC schedule, deposits

Legal Developments

are considered made on the specified number of "business days" following the "banking day" of deposit.
Disclosures
The Rhode Island statute requires written notice to
depositors of an institution's check hold policy and
requires a notice on deposit slips. Regulation CC
preempts state disclosure requirements concerning
funds availability that relate to accounts that are
inconsistent with the federal requirements. The state
requirements are different from, and therefore inconsistent with, the federal rules. (§ 229.20(c)(2)). Thus,
Regulation CC preempts the Rhode Island disclosure
requirements concerning funds availability.

ORDERS ISSUED UNDER BANK
COMPANY ACT

HOLDING

Orders Issued Under Section 3 of the Bank
Holding Company Act
Cenvest, Inc.
Meriden, Connecticut
Order Approving Acquisition of a Bank
Cenvest, Inc., Meriden, Connecticut ("Cenvest"),
has applied for the Board's approval under section
3(a)(3) of the Bank Holding Company Act (12 U.S.C.
§ 1842(a)(3)) ("BHC Act"), to acquire all of the outstanding voting shares of Meriden Trust and Safe
Deposit Company, Meriden, Connecticut ("Bank"). 1
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
(53 Federal Register 26,661 (1988)). 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.
Cenvest, a savings bank holding company,2 is the

1. Alternatively, in the event that another entity makes an acquisition proposal for Bank, Cenvest proposes to acquire up to 25 percent
of the shares of Bank pursuant to a stock option agreement entered
into between Cenvest and Bank.
2. Cenvest became a savings bank holding company under the
provisions of the Competitive Equality Banking Act of 1987, Pub. L.
No. 100-86, 101 Stat. 552, 557 (1987), which provides for the
formation and operation of a savings bank holding company where a
qualified savings bank constitutes at least 70 percent of the assets of
the parent holding company. Cenvest's current subsidiary, Central
Bank, Meriden, Connecticut, is such a qualified savings bank and
constitutes approximately 99 percent of the total assets of Cenvest.
Upon consummation of this transaction—comprising the acquisition
of a commercial bank—Cenvest will remain a qualified savings bank
holding company.




807

34th largest depository institution among commercial
banks and thrifts in Connecticut, controlling deposits
of $301.4 million, representing less than one percent of
the total deposits in such institutions in the state.3
Bank is among the smaller commercial banks in Connecticut, controlling deposits of $27 million, also representing less than one percent of the total deposits in
commercial banks and thrifts in the state. Upon consummation of this proposal, Cenvest would become
the 33rd largest depository institution among commercial banks and thrifts in Connecticut, and would control $328.4 million in deposits, representing 0.5 percent
of statewide commercial bank and thrift deposits.
Consummation of this proposal would not increase
significantly the concentration of banking resources in
Connecticut.
Cenvest competes directly with Bank in the New
Haven, Connecticut banking market.4 Cenvest is the
fifth largest banking organization in the market, with
deposits of $217.5 million, representing 6.9 percent of
deposits in commercial banks.5 Bank is the tenth
largest banking organization in the market, with deposits of $25.1 million, representing 0.8 percent of
deposits in commercial banks. Upon consummation of
the proposal, Cenvest would remain the fifth largest
banking organization in the market, with deposits of
$242.6 million, representing 7.7 percent of the market's total deposits in commercial banks. In light of
these factors and other facts of record, the Board
concludes that consummation of this proposal would
have no significant adverse effect on existing or potential competition in any relevant banking market.
The financial and managerial resources and future
prospects of Cenvest, Central Bank, and Bank also are
consistent with approval of the proposal.
In considering the convenience and needs of the
communities to be served, the Board has taken into
account the records of Cenvest and Bank under the
Community Reinvestment Act ("CRA"). 6 The CRA
requires the federal banking agencies, in connection
with their examination of financial institutions, to
assess the record of banks under their supervision in
meeting the credit needs of their entire communities,
including the low- and moderate-income neighborhoods, consistent with the safe and sound operation of
the institutions. The CRA also requires the agencies to

3. Deposit data are as of December 31, 1987.
4. The New Haven, Connecticut banking market is approximated
by the New Haven RMA. Market data are as of June 30, 1986.
5. Central Bank, Cenvest's savings bank subsidiary, offers a full
array of commercial bank products in those banking markets in which
it operates. Accordingly, Central Bank is treated as a commercial
bank for purposes of analyzing the competitive effects of this proposal.
6. 12 U.S.C. § 2901 et seq.

808

Federal Reserve Bulletin • December 1988

take these records into account when acting on certain
applications involving the institutions.
The Board has received comments from The Reinvestment Alliance of Meriden ("RAM") regarding
Cenvest's CRA performance generally and with particular respect to its subsidiary, Central Bank. RAM
asserts that Central Bank has failed to identify the
credit needs of low-income and minority members of
the community it serves and has exhibited bias on the
basis of race as well as income in its housing-related
lending. RAM also maintains that Central Bank has
participated to only a limited extent in governmentsupported or assisted credit programs and has contributed to the displacement of less affluent persons
through the financing of conversions, reinforcing a
general pattern of disinvestment in inner city neighborhoods.
In accordance with the Board's practice and procedure for handling protested applications,7 the Federal
Reserve Bank of Boston encouraged the parties to
meet to clarify the issues under the CRA. The parties
met and were unable to come to a resolution of their
differences.
Pursuant to the requirements of the CRA, the Board
has carefully reviewed the overall CRA record of
Cenvest and of Central Bank in particular, and the
comments of RAM. Initially, the Board notes that the
most recent examination of Central Bank by the Federal Deposit Insurance Corporation revealed a satisfactory CRA performance. The examination indicated
that Central Bank is an active participant in a number
of mortgage programs, including FHA, VA, and Connecticut Housing Finance Authority loans.8 Central
Bank has also recently become a qualified lender
under Connecticut's Downpayment Assistance Program aimed at assisting low- and moderate-income
families in financing their homes.
An analysis of Home Mortgage Disclosure Act
("HMDA") census tract data for the Meriden-New
Haven Metropolitan Statistical Area indicates that
Central Bank's lending practices in integrated areas
compare favorably with its lending practices in predominantly white areas.9 Moreover, HMDA data in7. See 12 C.F.R. § 262.25(c).
8. This last program offers low- and moderate-income persons credit
for home purchase or improvement at interest rates below those
generally available.
9. In 1985, Central Bank made 15.62 mortgage loans per 1000
owner-occupied units in integrated tracts, and 13.25 loans in predominantly white tracts, where income ranged between 80 percent and 120
percent of the MSA median. For home improvement loans in the same
tracts, 6.25 loans were made in the racially mixed neighborhoods,
compared with 3.10 in the predominantly white neighborhoods. The
differences for middle income areas are even more pronounced in
1986; Central Bank made 31.25 mortgage loans per 1000 owneroccupied units in integrated tracts, and 9.02 loans in their mostly white
counterparts. Central Bank made 8.33 home improvement loans in the




dicate that Central Bank continues to provide mortgage and home improvement loans throughout
Meriden, and in 1986 Central Bank ranked third among
18 local lenders in the extension of home improvement
loans to low- and moderate-income areas of Meriden.
While the amount of advertising focused on credit
products of particular benefit to low- and moderateincome persons has decreased over the past few years,
and the difference between lending in low-income
areas and other areas has increased in recent years,
Central Bank has made appropriate representations to
address these concerns. In particular, it has indicated
to the Board that it will:
(1) continue its efforts to establish a regular pattern
of contact with community organizations and government entities dealing with community credit
needs;
(2) continue its efforts, through advertising and
direct contact, to apprise members of the community of its credit related banking services, especially
those services provided in conjunction with government programs; and
(3) continue to actively seek opportunities to collaborate with government entities, community groups,
and/or other local financial institutions on community redevelopment projects.
Based upon the overall satisfactory CRA record of
Central Bank, Applicant's additional representations,
and other facts of record, the Board concludes that
convenience and needs considerations in this case are
consistent with approval of the application.10
Accordingly, based on the foregoing and other facts
of record, the Board has determined that the application should be, and hereby is, approved. The acquisiracially mixed tracts, versus 2.68 loans in the predominantly white
ones.
10. RAM has also requested that the Board order a public meeting
or hearing to receive public testimony on the issues presented by this
application. Although section 3(b) of the BHC Act does not require a
public meeting or hearing in this instance, the Board may, in its
discretion, order a public meeting or hearing. See 12 C.F.R.
§ 262.3(e). In that regard, the Board's Rules of Procedure 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). In addition, under the provisions of the
Board's Regulation Y, 12 C.F.R. § 225.23(g), the Board shall order a
hearing only if there are disputed issues of material fact that cannot be
resolved in some other manner.
The Board has carefully considered RAM's requests for a public
meeting or hearing. In accordance with the Board's guidelines, RAM
and Cenvest have met privately to discuss this application and have
exchanged extensive correspondence, all of which has been provided
to the Board for its review. In the Board's view, the parties have had
ample opportunity to present their arguments in writing and to
respond to one another's submissions. In light of these facts, the
Board has determined that a public meeting or hearing is not necessary
to clarify the factual record in this application. Accordingly, RAM's
request for a public meeting or hearing on this application is hereby
denied.

Legal Developments

tion shall not be consummated before the thirtieth
calendar day following the effective date of this Order,
or later than three months after the effective date of
this Order, unless such period is extended for good
cause by the Board, or by the Federal Reserve Bank of
Boston, acting pursuant to delegated authority.
By order of the Board of Governors, effective
October 20, 1988.
Voting for this action: Chairman Greenspan and Governors
Seger, Angell, Heller, Kelley, and LaWare. Absent and not
voting: Governor Johnson.
JAMES MCAFEE

Associate Secretary of the Board
Comerica Incorporated
Detroit, Michigan
Order Approving Acquisition of a Bank Holding
Company
Comerica Incorporated, Detroit, Michigan ("Comerica"), 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(a)(3) of the Act (12 U.S.C.
§ 1842(a)(3)) to acquire 100 percent of the outstanding
voting shares of Grand Bancshares, Inc., Dallas,
Texas ("Grand"), and thereby indirectly to acquire
Grand Bank R.L. Thornton at Grand, Grand Bank,
N.A., and Grand Bank Northeast, all of Dallas, Texas.
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (53 Federal Register 10,429 (1988)). 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.
The Douglas Amendment to the BHC Act 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."1
The Texas interstate banking statute permits out-ofstate bank holding companies to acquire established
Texas banks and bank holding companies.2 The Texas
1. 12 U.S.C. § 1842. 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.
2. Tex. Rev. Civ. Stat. Ann. art. 342-916 (Vernon 1988). The Board
has previously approved the acquisition of Texas banks by out-of-




809

Banking Department has informed the Board that it
has no objection to this proposal. In light of the
foregoing, the Board has determined that the proposed
acquisition is specifically authorized by the statute
laws of Texas and thus is not prohibited by the
Douglas Amendment.
Comerica is the second largest banking organization
in Michigan, operating eleven subsidiary banks with
total deposits of $8.1 billion, representing 13.1 percent
of the total deposits in commercial banks in Michigan.3
Grand is the twenty-second largest commercial banking organization in Texas, controlling deposits of
$438.6 million, representing less than one percent of
total deposits in commercial banks in the state. Consummation of the proposal would not have any significant adverse effect upon the concentration of banking
resources in Michigan or Texas.
Comerica and Grand do not compete directly in any
banking market. Accordingly, consummation of the
proposal would not eliminate any significant existing
competition in any relevant banking market. Consummation also would not have any significant adverse
effect on probable future competition in any relevant
banking market.
The financial and managerial resources of Comerica,
Grand, and their subsidiaries are consistent with approval.
In considering the convenience and needs of the
community to be served, the Board has taken into
account the record of Comerica's banks under the
Community Reinvestment Act (12 U.S.C. § 2901
et seq.) ("CRA") and various consumer compliance
statutes. The CRA requires the federal bank supervisory agencies to encourage financial institutions to
help meet the credit needs of the local communities in
which they are chartered consistent with the safe and
sound operation of such institutions. To accomplish
this end, the CRA requires the appropriate federal
supervisory authority to "assess the institution's
record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of the institution." The Board is required to "take
such record into account in its evaluation" of applications under section 3 of the BHC Act.
The Board's experience over the years in examining
bank performance under the CRA has indicated that
institutions with the most effective programs to help
meet community credit needs share a number of

state bank holding companies. See e.g., Chemical New York CorpoFirst
ration, 73 FEDERAL RESERVE BULLETIN 378 (1987); State
Financial Corporation,
73 FEDERAL RESERVE BULLETIN 307 (1987).

3. State banking data are as of June 30, 1987. All other data are as
of March 31, 1988. Comerica also operates a bank in Toledo, Ohio.

810

Federal Reserve Bulletin • December 1988

elements. These institutions maintain outreach programs which include procedures to permit effective
communication between the bank and various segments of the community and formalized methods for
incorporating findings regarding community credit
needs into the development and delivery of products
and services. They monitor institutional performance
at senior management levels and periodically evaluate
new opportunities for innovative lending programs,
such as home mortgage and neighborhood residential
rehabilitation lending and similar programs, to meet
specific community credit needs, including those of
low- and moderate-income persons. An effective program also includes the use of specifically designed
marketing and advertising plans to stimulate publicawareness of the bank's services throughout the community, including low- and moderate-income neighborhoods, as well as support of community
development projects and programs.
In this case, in accordance with the requirements of
the CRA, the Board has given careful attention to the
most recent CRA examination of Comerica's lead
bank, Comerica Bank - Detroit, Detroit, Michigan
("Bank"), which was completed by the Federal Reserve Bank of Chicago in December 1987. That examination noted certain important deficiencies in Bank's
CRA performance. On July 29, 1988, the Commissioner of the Michigan Financial Institutions Bureau
("Commissioner"), in acting on this application under
provisions of Michigan law, also noted certain areas
for improvement in Bank's CRA performance. The
Commissioner conditioned his approval of the application on, among other things, the adoption by Comerica of a satisfactory written plan for enhancing
Bank's investment in the city of Detroit.
In response to the concerns noted in the examination, Comerica and Bank, in April 1988, generated and
submitted to the Federal Reserve an extensive plan to
improve Bank's CRA performance, particularly with
respect to credit ascertainment and outreach to its
community. This CRA plan is designed to ensure that
Bank's services reach all areas of the city of Detroit
and respond to the needs identified by its citizens. As
part of Comerica's proposal to the Board, Comerica
intends to increase its efforts to ascertain the credit
needs of the city of Detroit by providing additional
training to its managers regarding Bank's CRA policies
and programs and by requiring its CRA officers and
branch managers to meet frequently with representatives of local community organizations to discuss the
credit needs of the community. In addition, Comerica
representatives have begun working with Detroit community organizations through seminars and credit surveys to develop mortgage lending programs that address the credit needs of residents of low- and



moderate-income and minority communities in Detroit.
Comerica will increase its advertising, particularly
with regard to home equity, home improvement, and
home mortgage loans, in newspapers of general circulation as well as minority newspapers and other media.
Comerica also has expanded its realtor call program to
include realtors operating in the city of Detroit. With
regard to its lending operations, Comerica has committed to participate more actively in government
sponsored housing-related lending programs.
Subsequent to submitting the CRA plan to the
Board, Comerica submitted a CRA plan to the Commissioner in accordance with his July 29, 1988 Order.
That plan contains certain additional elements not
present in the plan submitted to the Board.4 On
September 19, 1988, the Commissioner issued a letter
stating that this latter plan was satisfactory and consistent with approval of Comerica's application.
Comerica's CRA plan, as submitted to the Board,
contains the elements that, in the Board's experience,
reflect a strong CRA commitment. When properly
implemented, the Board believes the plan would correct the deficiencies in Bank's CRA performance, and
Bank's actions since adoption of the plan have shown
satisfactory progress toward correction of deficiencies. While certain aspects of the plan have not been
fully implemented, the Board has stated that an applicant's commitments to correct deficiencies in its CRA
performance are an important aspect of the Board's
role in encouraging performance under CRA.5 Accordingly, on the basis of the record, including Comerica's
commitments to the Board regarding its CRA plan,
and the steps it has taken to implement that plan, the
Board believes that considerations relating to the
convenience and needs of the communities to be
served are consistent with approval.6

4. Under the plan submitted to the Commissioner, Bank has made
certain specific financial commitments to a number of state and local
authorities and community programs with regard to mortgage, home
improvement, small business and consumer loans, as well as with
regard to small and large community development projects. Bank also
committed to adopt more liberal underwriting criteria with regard to
certain home improvement and mortgage loans, and has committed to
increase the number of minority and bilingual lending officers in its
branches. Comerica also will explore the establishment of a community development corporation.
5. See Advance

Bancorp,

Inc., 7 2 FEDERAL RESERVE BULLETIN 834

(1986); Board statement of January 3, 1980. 2 Federal Reserve
Regulatory Service 116-1312.
6. The Board received a protest concerning Bank's CRA performance from the Detroit Committee for Responsible Banking ("Protestant"). Protestant alleged that Comerica exercises a corporate
policy that prohibits investment in community development and
redevelopment projects in the city of Detroit. Protestant later withdrew the protest based on Bank's "commitment to devote its resources and talents to achieving the goals specified in [its revised
CRA] plan." Letter dated September 13, 1988, from Protestant to the
Federal Reserve Bank of Chicago.

Legal Developments

The Board will carefully scrutinize all future applications to determine Comerica's progress in fulfulling
its CRA obligations and improving its service to the
convenience and needs of its community. In connection with its approval of this case, the Board has
directed the Federal Reserve Bank of Chicago to
monitor the progress of Bank in strengthening its CRA
performance and implementing its CRA plan as submitted to the Board, and as a condition of its approval,
Comerica and Bank shall continue to submit quarterly
reports to the Reserve Bank concerning the plan and
Bank's CRA program.
Based on the foregoing and other facts of record, the
Board has determined that approval of the application
would be consistent with the public interest and that
the application should be, and hereby is, approved.
The transaction shall not be 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 Chicago, acting pursuant to delegated authority.
By order of the Board of Governors, effective
October 19, 1988.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Heller, Kelley, and LaWare.
JAMES MCAFEE

Associate Secretary of the Board

Dime Financial Corporation
Wallingford, Connecticut

811

("City Bank"). 1 Dime Bank and City Bank are FDICinsured savings banks.2
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published (53 Federal Register 29,523 (1988)).
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.
Dime, a non-operating corporation with no subsidiaries, was organized for the purpose of becoming a
bank holding company by acquiring Dime Bank and
City Bank. Dime Bank is the 35th largest depository
institution in Connecticut, with deposits of $296.5
million, representing less than 1.0 percent of the total
deposits in depository institutions in Connecticut.3
City Bank is one of the smaller depository institutions
in Connecticut, with deposits of $111.4 million, representing less than 1.0 percent of the total deposits in
those organizations. Upon consummation of this proposal, Dime would become the 28th largest depository
institution in Connecticut, controlling deposits of
$407.9 million, representing less than 1.0 percent of
the total deposits in depository institutions in Connecticut. Consummation of this proposal would not have a
significant adverse effect on the concentration of banking resources in Connecticut.
Dime Bank and City Bank compete directly in the
New Haven banking market.4 Dime Bank is the eighth
largest banking institution in the market, controlling
3.9 percent of the total deposits.5 City Bank is the 17th
largest banking institution in the market, controlling
1.3 percent of the total deposits in banking organizations in the market. Upon consummation of this proposal, Dime would become the eighth largest banking
institution in the market, controlling 5.2 percent of the

Order Approving Acquisition of Banks
Dime Financial Corporation, Wallingford, Connecticut ("Dime"), has applied for the Board's approval
pursuant to section 3(a)(1) of the Bank Holding Company Act ("Act"), 12 U.S.C. § 1841 et seq., to become a bank holding company by acquiring 100 percent of the voting shares of The Dime Savings Bank of
Wallingford, Wallingford, Connecticut ("Dime
Bank"), and 100 percent of the voting shares of City
Savings Bank of Meriden, Meriden, Connecticut

The Board also received an untimely comment from an individual
alleging that Comerica is not meeting its CRA commitments because
Bank refused to extend a loan to him. The Board has reviewed this
individual's comments and Comerica's response and concludes that
the individual's allegations do not warrant denial of the application.




1. Alternatively, in the event that another entity makes an acquisition proposal for City Bank, Dime proposes to acquire 24.9 percent of
the voting shares of City Bank pursuant to a stock option agreement
entered into between Dime Bank and City Bank. Dime Bank will
transfer the stock option to Dime.
As part of this transaction, Dime will indirectly acquire 7.1 percent
of Meriden Trust and Safe Deposit Company, Meriden, Connecticut,
which is currently owned by City Bank. Cenvest, Inc., Meriden,
Connecticut, received Board approval on October 20, 1988, to exchange its stock for 100 percent of the voting shares of Meriden Trust
and Safe Deposit Company, Meriden, Connecticut ("Meriden"), and
upon consummation of that acquisition, Dime and City Bank will
reduce their ownership to less than 5 percent of the shares of Cenvest,
Inc.
2. As FDIC-insured institutions, Dime Bank and City Bank would
qualify as banks under section 2(c) of the Act, as amended by 101(a)
of the Competitive Equality Banking Act of 1987, Pub. L. No. 100-86,
101 Stat. 552, 554 (1987) (to be codified at 12 U.S.C. § 1841(c)).
3. State banking data are as of December 31, 1987.
4. The New Haven banking market is approximated by the New
Haven, Connecticut, Ranally Metro Area.
5. Market data are as of June 30, 1986.

812

Federal Reserve Bulletin • December 1988

deposits in banking organizations in the market. The
four-firm concentration ratio would remain 51.0 percent and the Herfindahl-Hirschman Index ("HHI")
would increase by 10 points to 863.6 Based upon these
and other facts of record, the Board concludes that
consummation of this proposal would not have a
substantial adverse effect on competition in the New
Haven banking market.7
The financial and managerial resources of Dime,
Dime Bank and City Bank are considered satisfactory
and consistent with approval.
In considering the convenience and needs of the
communities to be served, the Board has considered
the records of Dime Bank and City Bank under the
Community Reinvestment Act ("CRA"), as well as
the comments of the Reinvestment Alliance of Meriden ("RAM"). The CRA requires the Board to assess
the record of banks in meeting the credit needs of their
entire communities, including low- and moderate-income neighborhoods, consistent with their safe and
sound operation, and to take those records into account in the Board's evaluation of bank holding company applications.8
RAM alleges that Dime Bank and City Bank have
not adequately met the credit needs of low-income and
minority persons in Meriden and have exhibited bias
on the basis of race as well as income in their housingrelated lending. RAM also asserts that City Bank has
failed to make loans for multi-family dwellings and that
both Dime Bank and City Bank have participated only
to a limited extent in government-supported or assisted credit programs, contributing to the displacement of low-income and minority persons through the
financing of conversions, and reinforcing a general
pattern of disinvestment in inner city neighborhoods.
In particular, RAM has identified specific low- and

6. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is above 1800 is considered highly concentrated. In
such markets, the Justice Department is likely to challenge a merger
that increases the HHI by more than 50 points. The Justice 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 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 effects
implicitly recognizes the competitive effect of limited-purpose lenders
and other non-depository financial entities.
7. Dime Bank and City Bank engage in Savings Bank Life Insurance
("SBLI") activities pursuant to state law. These activities are expressly authorized for qualified savings banks under the Act as
amended by the Competitive Equality Banking Act of 1987. Dime
meets all the requirements set out by the Act for bank holding
companies that desire to engage in SBLI activities through qualified
savings bank subsidiaries. 101 Stat, at 562 (to be codified at 12 U.S.C.
§ 1842(f)(3)).
8. 12 U.S.C. § 2901 et seq.




moderate-income areas and predominantly minority
neighborhoods that RAM believes are not adequately
served by City Bank and Dime Bank.9
The Board notes that Dime Bank and City Bank
have achieved satisfactory overall CRA ratings based
upon their most recent compliance examinations. The
Board also notes that Dime Bank's delineated community does not include Meriden and that neither RAM
nor the FDIC has criticized Dime Bank's delineation
of its community.
An analysis of Home Mortgage Disclosure Act
("HMDA") data for the Meriden-New Haven Metropolitan Statistical Area ("MSA") indicates that, during the period from 1984 to 1986, City Bank made at
least 24.0 percent of its conventional home mortgage
loans in the Meriden census tracts identified by
RAM.10 In addition, during 1984 through 1986, City
Bank made between 17.0 percent and 27.0 percent of
its home improvement loans in the Meriden census
tracts identified by RAM. n Dime Bank has also made
conventional home mortgage loans in RAM's targeted
Meriden census tracts, even though these census
tracts are outside the delineated community for Dime
Bank. The Board also notes that two of the three
branch offices of City Bank are in low- and moderateincome census tracts identified by RAM.
Although City Bank does not currently participate in
government-supported lending programs, Dime Bank
is a certified FHA, VA, Small Business Administration
Lender and Connecticut Housing Finance Authority
lender.12 Dime has stated that upon consummation of
this proposal it will cause Dime Bank to assist City
Bank in participating in the Connecticut Housing
Finance Authority program and will study the need for
extending FHA and VA mortgage lending programs in
Meriden. Dime has agreed to coordinate the efforts of
Dime Bank and City Bank, with assistance from the
Urban Preservation of Meriden, Inc., to make Connecticut Housing Finance Authority loans available to
low- and moderate-income persons in Meriden, as well
as other appropriate lending facilities. Dime will also
make SBA loans available in Meriden. Dime has also

9. RAM contends that this lending is not sufficient in these areas
based upon a comparison of the number of housing units in these
census tracts. The Board notes, however, that the figures used by
RAM to compute housing units include a significant number of rental
units, and RAM appears to have included one census tract that is
neither a low- and moderate-income neighborhood nor a predominantly minority neighborhood.
10. These ratios are 24.0 percent in 1984, 25.0 percent in 1985 and
24.0 percent in 1986.
11. These ratios are 19.0 percent in 1984, 27.0 percent in 1985 and
17.0 percent in 1986.
12. The Connecticut Housing Finance Authority program offers
low- and moderate-income persons credit for home purchase or
improvement at interest rates below those generally available.

Legal Developments

indicated that Dime Bank will implement a program at
City Bank for offering loans for multi-family dwellings
and for non-owner occupied 1-4 family dwellings in
Meriden.
In addition, Dime Bank currently advertises the
availability of its services in the Meriden daily newspaper and engages in direct mail solicitation. Upon
consummation of this acquisition, Dime intends to
continue these advertising programs and include Meriden residents in Dime Bank's direct mail solicitation.
Dime also intends to establish a similar direct mail
solicitation program for City Bank. Dime Bank also
will continue its efforts to ascertain the credit needs of
the community through contact with community organizations and periodic consumer surveys and will
assist City Bank in these efforts. Moreover, Dime
Bank and City Bank have expressed a willingness to
participate in housing seminars conducted by certain
local community organizations.
Based on the overall satisfactory CRA records of
Dime Bank and City Bank, the facts and representations described in this Order and all the other facts of
record, the Board concludes that convenience and
needs considerations are consistent with approval of
this application.13
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. This transaction shall not be
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Boston, acting pursuant to delegated authority.
By order of the Board of Governors, effective
October 26, 1988.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Heller, Kelley, and LaWare.
JAMES MCAFEE

Associate Secretary of the Board

13. The Board has also considered RAM's request for a public
meeting under section 262.25(d) of the Board's regulations and a
public hearing under the Act. Although section 3(b) of the Act does
not require a public meeting or hearing in this instance, the Board
may, in its discretion, order a public meeting or hearing. See
12 C.F.R. § 262.3(e). In that regard, the Board's Rules of Procedure
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). In this case, both RAM and
Dime have been given the opportunity to submit written facts and
arguments to the Board regarding the records of Dime Bank and City
Bank in meeting the convenience and needs of their communities and
have submitted extensive comments on these matters. In light of this,
the Board has determined to deny RAM's request for a public meeting
and a formal hearing at this time.




813

U.S. Bancorp
Portland, Oregon
Order Approving the Acquisition of a Bank
U.S. Bancorp, Portland, Oregon, a bank holding company within the meaning of the Bank Holding Company Act ("Act") (12 U.S.C. § 1841 et seq.), has
applied for the Board's approval under section 3(a)(3)
of the Act, 12 U.S.C. § 1842(a)(3), to acquire 100
percent of the voting shares of Northwestern Commercial Bank, Bellingham, Washington ("Northwestern
Bank").
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published (53 Federal Register 26,312 (1988)).
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.
The Douglas Amendment to the Act 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 such acquisition is specifically authorized by the statute laws
of the state in which the bank is located, by language
to that effect and not merely by implication. 12 U.S.C.
§ 1842(d). U.S. Bancorp's home state is Oregon. The
Board has previously determined that Washington has
by statute specifically authorized an Oregon bank
holding company to acquire a Washington bank or
bank holding company.1 Accordingly, approval of
U.S. Bancorp's proposal to acquire Northwestern
Bank is not barred by the Douglas Amendment.
U.S. Bancorp is the largest commercial banking
organization in Oregon, controlling three banks in
Oregon with total deposits of approximately $5.8 billion, representing 39.8 percent of the total deposits in
commercial banking organizations ("total bank deposits") in the state.2 U.S. Bancorp also operates three
banks in Washington, where it is the fourth largest
commercial banking organization in the state, controlling deposits of approximately $2.0 billion, representing 7.8 percent of the total bank deposits in the state.
Northwestern Bank is the 19th largest commercial
banking organization in Washington, controlling deposits of $90.3 million, representing less than 1.0
percent of the total bank deposits in the state. Upon
consummation of this proposal, U.S. Bancorp would
remain the fourth largest commercial banking organization in Washington, controlling deposits of $2.1
1. U.S. Bancorp,

73 FEDERAL RESERVE BULLETIN 941 (1987).

2. State banking data are as of December 31, 1987. U.S. Bancorp
also controls one bank in Utah.

814

Federal Reserve Bulletin • December 1988

billion, representing 8.1 percent of the total bank
deposits in the state. Accordingly, consummation of
this proposal would not have any significant adverse
effect on the concentration of banking resources in
Washington.
U.S. Bancorp's subsidiary banks compete directly
with Northwestern Bank in the Whatcom County and
Bellingham metropolitan banking markets.
In the Whatcom County banking market,3 U.S.
Bancorp is the third largest of nine commercial banking organizations, controlling deposits of $95.8 million,
representing 14.9 percent of the total bank deposits in
the market.4 Northwestern Bank is the fourth largest
commercial banking organization in the market, controlling deposits of $78.4 million, representing 12.2
percent of the total bank deposits in the market. Upon
consummation of this proposal, U.S. Bancorp would
become the largest commercial banking organization
in the market, controlling deposits of $174.2 million,
representing 27.1 percent of the total bank deposits in
the market. The four-firm concentration ratio would
increase by 11.0 percentage points to 81.5 percent and
the Herfindahl-Hirschman Index ("HHI") would increase by 363 points to 1943.5
In the Bellingham metropolitan banking market,6
U.S. Bancorp is the third largest of eight commercial
banking organizations, controlling deposits of $69.9
million, representing 15.6 percent of the total bank
deposits in the market.7 Northwestern Bank is the
second largest commercial banking organization in the
market, controlling deposits of $73.5 million, representing 16.4 percent of the total bank deposits in the
market. Upon consummation of this proposal, U.S.
Bancorp would become the largest commercial banking organization in the market, controlling deposits of
$143.4 million, representing 32.1 percent of the total
bank deposits in the market. The four-firm concentra-

tion ratio would increase by 13.9 percentage points to
89.3 percent and the HHI would increase by 514 points
to 2278.
Although consummation of this proposal would
eliminate some existing competition between U.S.
Bancorp and Northwestern Bank in the Whatcom
County and Bellingham metropolitan banking markets, numerous other commercial banks would continue to operate in each market after consummation of
this proposal. In addition, the Board has considered
the presence of thrift institutions in these banking
markets in its analysis of this proposal.8 These institutions account for a significant percentage of the total
deposits in each market.9 Based upon the size and
market share of thrift institutions in the markets, the
Board has concluded that thrift institutions exert a
significant competitive influence that mitigates the
anticompetitive effects of this proposal in the Whatcom County and Bellingham metropolitan banking
markets.10
On the basis of the foregoing and other facts of
record, the Board concludes that consummation of
this proposal would not have a substantial adverse
effect on existing competition in the Whatcom County
and Bellingham metropolitan banking markets.
The financial and managerial resources of U.S.
Bancorp and Northwestern Bank are considered satisfactory and consistent with approval.
In considering the convenience and needs of the
communities to be served, the Board has taken into
account U.S. Bancorp's record under the Community
Reinvestment Act ("CRA"), 12 U.S.C. § 2901 et seq.
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
8. The Board has previously indicated that thrift institutions have
become, or have the potential to become, major competitors of
commercial banks. National City Corporation, 70 FEDERAL RESERVE

3. The Whatcom County banking market is approximated by
Whatcom County, Washington, exclusive of the Bellingham, Washington, Ranally Metropolitan Area.
4. Market banking data are as of June 30, 1986.
5. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is above 1800 is considered highly concentrated. In
such markets, the Justice Department is likely to challenge a merger
that increases the HHI by more than 50 points. The Justice 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 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 effects
implicitly recognizes the competitive effect of limited-purpose lenders
and other non-depository financial entities.
6. The Bellingham metropolitan banking market is approximated by
the Bellingham, Washington, Ranally Metropolitan Area (RMA).
7. Market banking data are adjusted to reflect U.S. Bancorp's
June 30, 1988, acquisition of Mt. Baker Bank, Bellingham, Washington.




B U L L E T I N 7 4 3 ( 1 9 8 4 ) ; NCNB

Bancorporation,

7 0 F E D E R A L RESERVE

BULLETIN 225 (1984); General Bancshares
Corporation,
69 FEDERAL
RESERVE BULLETIN 802 (1983); and First Tennessee National
Corporation,

6 9 FEDERAL RESERVE B U L L E T I N 2 9 8 ( 1 9 8 3 ) .

9. Thrift institutions control 33.8 percent of the combined deposits
of banks and thrifts in the Whatcom banking market and 39.8 percent
of the combined deposits of banks and thrifts in the Bellingham
metropolitan banking market.
10. If 50 percent of deposits held by thrift institutions in the
Whatcom County banking market were included in the calculation of
market concentration, the share of total deposits held by the four
largest organizations in the market would be 66.8 percent. U.S.
Bancorp would control 11.9 percent of the market's deposits and
Northwestern Bank would control 9.7 percent of the market's deposits. The HHI would increase by 231 points to 1386.
If 50 percent of deposits held by thrift institutions in the Bellingham
metropolitan banking market were included in the calculation of
market concentration, the share of total deposits held by the four
largest organizations in the market would be 68.5 percent. U.S.
Bancorp would control 11.8 percent of the market's deposits and
Northwestern Bank would control 12.4 percent of the market's
deposits. The HHI would increase by 290 points to 1494.

Legal Developments

the entire community, including low- and moderateincome neighborhoods, consistent with safe and sound
operation. The Board has received comments from
Lane County Fair Share/Friends of Lincoln School,
Eugene, Oregon ("Protestant"), regarding U.S. Bancorp's CRA record. Protestant alleges that U.S. Bancorp's subsidiary, U.S. National Bank of Oregon,
Eugene, Oregon ("U.S. Bank"), has failed to adequately assess and serve the credit needs of low- and
moderate-income persons in Eugene's central and
west-side neighborhoods.11
U.S. Bancorp has met privately with Protestant to
discuss the issues raised by the comments. U.S.
Bancorp has stated that it will arrange future meetings
between staff of U.S. Bank's Eugene branch and
Protestant's representative, regarding development of
a project proposed by Protestant to renovate Lincoln
School and transform it into a community services
center. U.S. Bank staff will assist Protestant in the
further development of its proposal to renovate Lincoln School.
In accordance with the Board's practice and
procedures,12 the Board has reviewed Protestant's
allegations, U.S. Bancorp's response to the allegations
and the records of U.S. Bancorp's subsidiary banks
and Northwestern Bank in meeting the convenience
and needs of its community.
An analysis of U.S. Bank's CRA record reveals that
U.S. Bank and Northwestern Bank have achieved
satisfactory overall CRA ratings based upon the most
recent compliance examinations conducted by their
primary supervisory agencies. U.S. Bank offers several programs designed to meet the credit needs of
low- and moderate-income persons, including the following:
1. "Opportunity loans" designed to enable individuals with job skills, who would otherwise not be
considered creditworthy, to start businesses;
2. Below-market rate weatherization loans, offered
in cooperation with the state of Oregon, to enable
homeowners to reduce energy costs; and
3. Line of credit to the Portland Development Commission for rehabilitation of deteriorating housing in
the Portland area and to build low-income housing.
In addition, during 1987, U.S. Bank acted as underwriter for municipal securities issued by EugeneSpringfield and invested in bond issues by local
school, fire, and park and recreation districts.
11. Protestant alleges that:
(1) there are large geographic gaps in U.S. Bank's lending;
(2) U.S. Bank's community delineation, which includes the entire
state of Oregon, is unreasonable; and
(3) U.S. Bank's CRA statement is outdated.
12. 12 C.F.R. § 262.25(c).




815

Although U.S. Bank did not originate directly any
mortgage loans in the low- and moderate-income census tracts identified by Protestant, its mortgage banking subsidiary has originated loans in those census
tracts. The Board also notes that before 1986, U.S.
Bank's lending record does not establish a pattern of
excluding low- and moderate-income census tracts.
With regard to Protestant's allegations relating to
U.S. Bank's compliance with CRA procedures, the
Office of the Comptroller of the Currency determined
during its most recent compliance examination that
U.S. Bank's delineation of the entire state of Oregon
as its designated community was appropriate because
U.S. Bank's widely dispersed branches enable it to
provide services throughout Oregon. In addition, U.S.
Bank's CRA statement is reviewed annually by its
Board of Directors and contains the required information.
Accordingly, based on the overall satisfactory CRA
records of U.S. Bancorp's subsidiary banks and
Northwestern Bank, and all the facts of record, the
Board concludes that convenience and needs considerations are consistent with 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 Northwestern Bank shall not be consummated before the
thirtieth calendar day following the effective date of
this Order, or later than three months after the effective date of this Order, unless such period is extended
for good cause by the Board or by the Federal Reserve
Bank of San Francisco, acting pursuant to delegated
authority.
By order of the Board of Governors, effective
October 11, 1988.
Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, Kelley, and La Ware. Absent and not
voting: Chairman Greenspan and Governor Heller.
JAMES M C A F E E

Associate Secretary of the Board
Orders Issued Under Section 4 of the Bank
Holding Company Act
CoreStates Financial Corp
Philadelphia, Pennsylvania
Order Approving Application to Engage in
Underwriting and Dealing in Certain Securities to a
Limited Extent
CoreStates Financial Corp, Philadelphia, Pennsylvania, a bank holding company within the meaning of the

816

Federal Reserve Bulletin • December 1988

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 (12 U.S.C.
§ 1843(c)(8)) and section 225.23 of the Board's Regulation Y (12 C.F.R. § 225.23) to engage de novo
through CoreStates Securities Corp., Philadelphia,
Pennsylvania ("Company"), on a limited basis in
underwriting and dealing in:
(1) municipal revenue bonds, including certain industrial development bonds;
(2) 1-4 family mortgage-related securities;
(3) commercial paper; and
(4) consumer-receivable-related securities ("CRRs")
(collectively "ineligible securities").
Applicant has also applied to act as agent and
adviser to issuers of commercial paper and other
short-term promissory notes in connection with the
placement of such notes with institutional customers.
In addition, Applicant proposes to underwrite and
deal in securities that state member banks are permitted to underwrite and deal in under the Glass-Steagall
Act (hereinafter "bank-eligible securities") as permitted by section 225.25(b)(16) of Regulation Y
(12 C.F.R. § 225.25(b)(16)). Company currently engages in securities brokerage activities pursuant to
section 225.25(b)(15) of Regulation Y (12 C.F.R.
§ 225.25(b)(15)).
Applicant, with consolidated assets of $15.4 billion,
is the 38th largest banking organization in the nation. It
operates four subsidiary banks and engages directly
and through subsidiaries in a broad range of permissible nonbanking activities.1
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been published (53 Federal Register 33,848
(1988)). 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.
The Board has previously determined that underwriting and dealing in bank-eligible securities and
commercial paper placement are closely related to
banking under section 4(c)(8) of the BHC Act.
12 C.F.R. § 225.25(b)(16); Bankers Trust New York
Corporation, 73 FEDERAL RESERVE BULLETIN 138
(1987) ("Bankers Trust"); and The Bank of Montreal,
74 FEDERAL RESERVE BULLETIN 500 (1988). Applicant
has proposed to place commercial paper in accordance
with the terms and conditions of the Board's prior
decisions.
The Board has also previously determined that the

1. Ranking is as of March 31, 1988. All other data are as of June 30,
1988.




conduct of the proposed ineligible securities underwriting and dealing activity is consistent with section
20 of the Glass-Steagall Act provided the underwriting
subsidiary derives no more than 5 percent of its total
gross revenue from underwriting and dealing in the
approved securities over any two-year period.2 The
Board further found that, subject to the prudential
framework of limitations established in those cases to
address the potential for conflicts of interests, 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. Applicant has committed to conduct its
ineligible underwriting and dealing activities subject to
the 5 percent-revenue test and the prudential limitations established by the Board in its Citicorp!Morgan!
Bankers Trust and Chemical Orders.
Consummation of the proposal would provide added
convenience to Applicant's customers. In addition,
the Board expects that the de novo entry of Applicant
into the market for these services would increase the
level of competition among providers of these services. Accordingly, the Board has determined that the
performance of the proposed activities by Applicant
can reasonably be expected to produce public benefits
which would outweigh adverse effects under the
proper incident to banking standard of section 4(c)(8)
of the BHC Act.3
Based on the above, the Board has determined to
approve the underwriting application subject to all of
the terms and conditions established in section
225.25(b)(16) of Regulation Y and the CiticorplMorgan/Bankers Trust, Chemical and Bankers Trust
Orders,4 except the market share limitation.5 As in
2. Citicorp, J.P. Morgan & Co. Incorporated and Bankers Trust
New

York Corporation,

73 FEDERAL RESERVE BULLETIN 473 (1987)

("Citicorp/Morgan!Bankers Trust"), off d sub nom., Securities Industry Association v. Board of Governors of the Federal Reserve System,
839 F.2d 47 (2d Cir. 1988), cert, denied, 108 S. Ct. 2830 (1988) ("S/A
v. Board"); and Chemical New York Corporation, The Chase Manhattan Corporation, Bankers Trust New York Corporation, Citicorp,
Manufacturers Hanover Corporation and Security Pacific Corporation, 73 FEDERAL RESERVE BULLETIN 731 (1987) ( " C h e m i c a l " ) .

3. Company may also provide services that are necessary incidents
to these approved activities. The incidental services should be taken
into account in computing the gross revenue limit on the underwriting
subsidiary's ineligible underwriting and dealing activities, to the
extent such limits apply to particular incidental activities.
4. 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.
5. In light of the decision in SIA v. Board, the Board has determined
not to limit Company's ineligible activities based upon a market share
limitation.

Legal Developments

Bank of Montreal, Applicant's commercial paper
placement activity is not subject to quantitative limitations.
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 a bank holding company or any of its subsidiaries as the Board finds
necessary to assure compliance with, and to prevent
evasion of, the provisions of the BHC Act and the
Board's regulations and orders issued thereunder.
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
Philadelphia, pursuant to delegated authority.
By order of the Board of Governors, effective
October 11, 1988.
Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, Kelley, and LaWare. Absent and not
voting: Chairman Greenspan and Governor Heller.
JAMES MCAFEE

Associate Secretary of the Board

First Bancorporation of Ohio
Akron, Ohio
Order Approving Acquisition of a Federal Savings
Bank
First Bancorporation of Ohio, Akron, Ohio ("First
Bancorporation"), a bank holding company within the
meaning of the Bank Holding Company Act
(12 U.S.C. § 1841 et seq.) (the "BHC Act"), has
applied pursuant to section 4(c)(8) of the BHC Act and
section 225.23 of the Board's Regulation Y (12 C.F.R.
§ 225.23), to acquire all of the voting shares of the
successor by merger to Peoples Federal Savings Bank,
Wooster, Ohio ("Peoples Bank"), an insolvent thrift
institution.1 Upon consummation of the proposed acquisition, Peoples Bank will operate as a federal savings bank in Ohio.
First Bancorporation, with total consolidated assets
of $2.6 billion, is the 10th largest commercial banking

1. Peoples Bank is currently operated as a mutual thrift institution,
and will be converted to a federal stock savings bank by the Federal
Savings and Loan Insurance Corporation (the "FSLIC") in an involuntary supervisory conversion. Peoples Bank will then be merged into
a de novo federal stock savings bank, which will retain the name
Peoples Federal Savings Bank. Peoples Bank also will retain its
FSLIC deposit insurance.




817

organization in Ohio.2 It presently operates three
banking subsidiaries and engages in permissible creditrelated insurance activities through its subsidiary,
FBOH Credit Life Insurance Company.
Peoples Bank, with total assets of $385.4 million, is
the 25th largest savings institution in Ohio. Peoples
Bank currently operates 11 branches in Ohio and
controls an inactive service corporation subsidiary.3
By letter dated October 20, 1988, the Federal Home
Loan Bank Board ("Bank Board") requested that the
Board approve this application to acquire Peoples
Bank under the Bank Board's Expedited Case Processing Program for failing thrift institutions. The
Bank Board has indicated that Peoples Bank has
incurred significant operating losses over a prolonged
period, and has reported a negative net worth for over
2Vi years. The Bank Board urged the Board to approve
this application in order to restore public confidence in
Peoples Bank, maintain confidence in the savings and
loan industry generally, and stabilize the daily increasing potential cost to the FSLIC. The Bank Board
based its request on both the deteriorating and volatile
condition of Peoples Bank, as well as on the substantial public benefits of the proposal, including the
significant and stabilizing capital injections proposed
by First Bancorporation and the FSLIC.
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been duly published (53 Federal Register
32,665 (1988)).4 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.
The Board has determined previously that the operation of a federal savings bank (and thrift institutions
generally) is closely related to banking.5 The Board-

2. Asset data are as of December 31, 1987.
3. First Bancorporation has committed that its service corporation
will not engage in any activities without the prior approval of the
Board.
4. The Board is authorized by statute and regulation to waive or
shorten the usual notice and comment period, as well as the hearing
requirements normally accorded section 4 applications, in the case of
failing thrift acquisitions. Under these provisions, the Board is required to determine, with the concurrence of the primary Federal
regulator of the thrift being acquired, that an emergency exists which
requires the Board to act immediately on an application to acquire a
failing thrift institution. 12 U.S.C. § 1843(c)(8); 12 C.F.R. § 225.23(i).
The Bank Board has concurred that an emergency exists and has
requested that the Board act immediately on the application. Accordingly, the Board provided for a shortened public comment period in
light of the deteriorating condition of Peoples Bank.
5. See

e.g.,

Citicorp,

7 2 FEDERAL RESERVE BULLETIN 7 2 4 ( 1 9 8 6 ) ;

First Pacific Investments Limited, 72 FEDERAL RESERVE BULLETIN
3 4 2 ( 1 9 8 6 ) ; F.N.B.
(1985).

Corporation,

71 FEDERAL RESERVE BULLETIN 3 4 0

818

Federal Reserve Bulletin • December 1988

also has determined that, as a general matter, operation of a thrift institution was not a proper incident to
banking because the potential adverse effects of generally allowing affiliations of banks and thrifts, at the
time of its initial consideration of this issue, were then
sufficiently strong to outweigh any public benefits that
might result from individual cases. D.H. Baldwin &
Co., 63 FEDERAL RESERVE BULLETIN 280 (1977).6 The
Board, however, has consistently regarded the BHC
Act as authorizing it to permit such an acquisition, and
has approved several such proposals involving failing
thrift institutions on the basis that any adverse effects
would be outweighed by the public benefits of preserving the failing thrift institutions.7
Based upon the Board's review of the record, the
Board has determined that substantial benefits to the
public in this case outweigh the generalized adverse
effects found by the Board in the D.H. Baldwin case.
The Board believes First Bancorporation's acquisition
of Peoples Bank will result in substantial and compelling public benefits in that First Bancorporation will
provide Peoples Bank with significant financial and
managerial resources sufficient to enhance its future
prospects, enabling Peoples Bank to continue its operations and remain a viable competitor.
As the Board previously has noted, bank holding
companies contemplating expansion proposals are expected to maintain consolidated capital levels significantly above the minimums set forth in the Board's
Capital Adequacy Guidelines and without undue reliance on intangibles, particularly goodwill. In that
regard, First Bancorporation is a strongly capitalized
institution, and will remain so on a consolidated basis
upon consummation of the proposal. Moreover, in
accordance with its prior rulings in this area, the Board
expects that First Bancorporation will cause Peoples
Bank to achieve and maintain levels of capital consistent with those applying to banking organizations
generally as soon as possible, and in any case within
one year.
The proposed acquisition would not substantially
lessen or otherwise decrease competition in any relevant market. On the contrary, the acquisition would
have the substantial beneficial effect of preserving
Peoples Bank as an effective competitor. In that regard, both First Bancorporation and Peoples Bank

6. The Board has invited public comment on a proposal to reexamine the position espoused in its D.H. Baldwin Order. 52 Federal
Register 36,041 (1987).
7. See e.g., F.N.B. Corporation, supra; The Chase Manhattan
Corporation,
71 FEDERAL RESERVE BULLETIN 462 (1985); Interstate
Financial Corp., 68 FEDERAL RESERVE BULLETIN 316 (1982).




engage in deposit taking8 and lending activities within
the Akron, Ohio banking market.9 In view of Peoples
Bank's small market share, the moderately concentrated nature of the market and the de minimis increase in concentration resulting from this proposal,
the deteriorating condition of Peoples Bank, and the
fact that 25 other bank and thrift institutions would
remain in the market, the Board concludes that the
acquisition would have no substantial adverse effect
on existing competition in the market. In addition, the
Board concludes that consummation of this proposal
would not have a significant adverse effect on probable
future competition in any relevant market.
To guard against possible adverse effects of affiliation between a banking organization and a savings
bank, the Board conditions its approval as follows:
1. First Bancorporation will operate Peoples Bank
as a federal savings bank having as its primary
purpose the provision of residential housing credit.
Peoples Bank will limit its activities to those currently permitted to thrift institutions under the
Home Owners' Loan Act, but shall not engage in
any activity prohibited to bank holding companies
and their subsidiaries under section 4(c)(8) of the
BHC Act.10
2. Peoples Bank will not establish or operate a
remote service unit at any location outside of Ohio.
3. Peoples Bank will not establish or operate
branches at locations not permissible for national
banks located in Ohio.
4. First Bancorporation shall not change Peoples
Bank's name to any title that might confuse the
public regarding its status as a nonbank thrift institution.
5. Peoples Bank will not convert its charter to that
of a national or state commercial bank without the
Board's prior approval.
The Board concludes that consummation of the
proposal, subject to the conditions set out above,
would not result in conflicts of interests, unsound
8. Within the Akron, Ohio banking market (see below), First
Bancorporation is the largest depository institution among banks and
thrift institutions in the market, with total deposits of $1.2 billion,
representing approximately 21.1 percent of market deposits in such
institutions. Peoples Bank is the 11th largest depository institution
among banks and thrifts in the market, with total deposits of $70.6
million, representing approximately 1.2 percent of the total deposits in
banks and thrifts in the market. Upon consummation of the proposal,
First Bancorporation would control 22.3 percent of the total deposits
of banks and thrifts in the market. The market would remain moderately concentrated. Market data are as of June 30, 1987.
9. The Akron, Ohio banking market is approximated by the southern two-thirds of Summit and Portage counties, Milton and Chippewa
townships in Wayne County, Lawrence and the western half of Lake
Township in Stark County, and the southernmost tier of townships
(including Sharon Township) in Medina County.
10. These limitations also apply to Peoples Bank's currently inactive service corporation subsidiary.

Legal Developments

banking practices, decreased or unfair competition,
undue concentration of resources, or other adverse
effects.
Based upon the foregoing and other facts and circumstances reflected in the record, the Board has
determined that the acquisition of Peoples Bank by
First Bancorporation would result in substantial and
compelling public benefits that are sufficient to outweigh any adverse effects that may reasonably be
expected to result from this proposal. Accordingly, the
application is approved subject to the conditions described in this Order, and the record of the application.
The Board's decision in this case is subject to the
conditions set forth in Regulation Y, including sections
225.4(d) and 225.23(b), and to the Board's authority to
require such modification or termination of the activities of a holding company or any of its subsidiaries as
the Board finds necessary to assure compliance with,
or to prevent evasion of, the provisions and purposes
of the BHC Act and the Board's regulations and orders
issued thereunder. This transaction shall not be consummated later than three months after the effective
date of this Order, unless that period is extended for
good cause by the Board or by the Federal Reserve
Bank of Cleveland, pursuant to delegated authority.
By order of the Board of Governors, effective
October 21, 1988.
Voting for this action: Chairman Greenspan and Governors
Johnson, Angell, Heller, and La Ware. Absent and not voting:
Governors Seger and Kelley.
JAMES MCAFEE

Associate Secretary of the Board
Fleet/Norstar Financial Group, Inc.
Providence, Rhode Island
Fleet/Nor star New York, Inc.
Albany, New York
Order Approving Application to Underwrite and
Deal in Certain Securities to a Limited Extent
Fleet/Norstar Financial Group, Inc., Providence,
Rhode Island, and its wholly owned subsidiary, Fleet/
Norstar New York, Inc., Albany, New York (together
"Applicant"), both bank holding companies within the
meaning of the Bank Holding Company Act
(12 U.S.C. § 1841 et seq.) ("BHC Act"), have applied
for the Board's approval under section 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
their wholly owned subsidiary, Adams, McEntee &
Co., Inc., New York, New York ("Company"), in



819

underwriting and dealing in, on a limited basis, municipal revenue bonds, including certain industrial development bonds, and commercial paper.
Company currently engages in underwriting and
dealing in securities that state member banks are
permitted to underwrite and deal in under the GlassSteagall Act (hereinafter "bank-eligible securities"),
as permitted by section 225.25(b)(16) of Regulation Y
(12 C.F.R. § 225.25(b)(16)). Company also engages in
securities brokerage activities pursuant to section
225.25(b)(15) (12 C.F.R. § 225.25(b)(15)).
Applicant, with consolidated assets of $25.1 billion,
is the 24th largest banking organization in the nation. It
operates nine subsidiary banks and engages directly
and through subsidiaries in a broad range of permissible nonbanking activities.1
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been published (53 Federal Register 31,763
(1988)). 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.
The Board has previously determined that the conduct of the proposed ineligible securities underwriting
and dealing activity is consistent with section 20 of the
Glass-Steagall Act provided the underwriting subsidiary derives no more than 5 percent of its total gross
revenue from underwriting and dealing in the approved securities over any two-year period.2 The
Board further found that, subject to the prudential
framework of limitations established in those cases to
address the potential for conflicts of interests, 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. Applicant has committed to conduct its
ineligible underwriting and dealing activities subject to
the 5 percent revenue test and the prudential limitations established by the Board in its Citicorp!Morgan!
Bankers Trust Order.
Consummation of the proposal would provide added
convenience to Applicant's customers. In addition,
the Board expects that the de novo entry of Applicant
into the market for these services would increase the
level of competition among providers of these services. Accordingly, the Board has determined that the
1. Ranking is as of March 31, 1988. All other data are as of June 30,
1988.
2. Citicorp, J.P. Morgan & Co. Incorporated and Bankers Trust
New

York Corporation,

73 FEDERAL RESERVE BULLETIN 473 (1987)

("Citicorp/Morgan/Bankers Trust"), affd sub nom., Securities Industry Association v. Board of Governors of the Federal Reserve System,
839 F.2d 47 (2d Cir. 1988), cert, denied, 108 S. Ct. 2830 (1988) CSIA
v. Board").

820

Federal Reserve Bulletin • December 1988

performance of the proposed activities by Applicant
can reasonably be expected to produce public benefits
which would outweigh adverse effects under the
proper incident to banking standard of section 4(c)(8)
of the BHC Act.3
Based on the above, the Board has determined to
approve the underwriting application subject to all of
the terms and conditions established in the Citicorp!
Morgan/Bankers Trust Order,4 except the market
share limitation.5
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 a bank holding company or any of its subsidiaries as the Board finds
necessary to assure compliance with, and to prevent
evasion of, the provisions of the BHC Act and the
Board's regulations and orders issued thereunder.
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
Boston pursuant to delegated authority.
By order of the Board of Governors, effective
October 3, 1988.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Heller, Kelley, and LaWare.
JAMES MCAFEE

Associate Secretary of the Board
Security Pacific Corporation
Los Angeles, California
Order Conditionally Approving Application to
Provide Advice on Certain Futures and Options on
Futures
Security Pacific Corporation, Los Angeles, California,
a bank holding company within the meaning of the
3. Company may also provide services that are necessary incidents
to these approved activities. The incidental services should be taken
into account in computing the gross revenue limit on the underwriting
subsidiary's ineligible underwriting and dealing activities, to the
extent such limits apply to particular incidental activities.
4. 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.
5. In light of the decision in SI A v. Board, the Board has determined
not to limit Company's ineligible activities based upon a market share
limitation.




Bank Holding Company Act (12 U.S.C. § 1841 etseq.)
("BHC Act"), has applied for the Board's approval
under section 4(c)(8) of the BHC Act (12 U.S.C.
§ 1843(c)(8)) and section 225.21(a) of the Board's
Regulation Y (12 C.F.R. 225.21(a)) to engage de novo
through its wholly owned subsidiary, SP Investment
Strategies Corp., San Diego, California ("Company"),
in providing investment advice concerning futures and
options on futures contracts on foreign exchange,
government securities, bullion and money market instruments to a limited number of institutional customers. In addition to this activity, Company would provide portfolio investment advice, for which Applicant
has previously received authorization pursuant to section 225.25(b)(4)(iii) of Regulation Y (12 C.F.R.
§ 225.25(b)(4)(iii)).
Notice of the application, affording an opportunity
for interested persons to submit comments and views,
has been duly published (53 Federal Register 28,269
(1988)). The time for filing comments has expired, and
the Board has considered the application and all
comments received in light of the factors set forth in
section 4(c)(8) of the BHC Act.
Applicant, with consolidated assets of approximately $75.6 billion, is the seventh largest commercial
banking organization in the nation.1 It operates five
subsidiary banks in California, Arizona, and Oregon
and engages directly and through other subsidiaries in
a broad range of nonbanking activities.
Section 4(c)(8) establishes 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.
The Board has previously determined that providing
such investment advice as a futures commission merchant ("FCM") or as a commodity trading advisor
("CTA") registered with the Commodity Futures
Trading Commission ("CFTC") is closely related to
banking, and, subject to conditions to address possible
risk or conflicts, is a proper incident to banking.
12 C.F.R. § 225.25(b)(19). Company would limit the
scope of its advisory activity to that previously determined by the Board to be closely related to banking
under this section of Regulation Y.

1. Asset data are as of June 30, 1988. AH other data are as of
June 30, 1987.

Legal Developments

The issue presented by this proposal is whether the
conduct of this activity by Company would be a proper
incident to banking if Company does not meet the
requirement under Regulation Y that the adviser register with the CFTC as a CTA or an FCM. In this case,
Company expects to qualify for a statutory exemption
from such registration under section 4m of the Commodity Exchange Act, which provides that any person
who, during the preceding 12 months, has not furnished commodity advisory services to more than 15
persons and who does not hold himself out generally to
the public as a CTA, is exempt from the registration
requirements for CTA's under that Act.2 Company
would only serve customers who have a pre-existing
relationship with it or its affiliates.
In permitting bank holding companies to provide
commodity trading advice, the Board established the
registration condition with the objective of minimizing
potential hazards or conflicts. Registration addresses
these concerns by subjecting the CTA's to the supervision and regulation of the CFTC and the requirements adopted by the CFTC to govern the conduct of
that activity. Applicant's proposal would permit Company to provide commodity trading advice without
such safeguards. While Applicant has agreed to comply with many of the CFTC's conditions associated
with registration, it has not agreed to the disclosure
requirements. Consistent with the Board's regulations
and past decisions, the Board expects, however, that
Company will disclose to its customers substantially
the same information required for registered CTA's,
including the CTA's performance record, conflicts of
interests, possible trading risks, and civil and criminal
actions against the CTA.
The Board believes that possible adverse effects in
this case would be further minimized by the following
considerations. Company will remain subject to the
anti-fraud provisions of the Commodity Exchange Act
as well as other restrictions contained in the Act.3
Further, as noted, Applicant has agreed to comply
with all the other conditions on this activity that are
aimed at minimizing possible adverse effects. Thus,
the adviser will not trade for its own account (except
to hedge), will limit its advice to instruments that
banks deal in extensively (foreign exchange, bullion,
government securities and money market instruments), and will only serve customers that are financially sophisticated and have significant dealings or

821

holdings in the underlying commodities or instruments.
Consummation of the proposal would provide some
convenience to Applicant's customers. In addition,
the Board expects that the de novo entry of Applicant
into the market for these services would increase the
level of competition among providers of these services. Accordingly, the Board has determined that the
performance of the proposed activities by Applicant
can reasonably be expected to produce public benefits
which would outweigh adverse effects under the
proper incident to banking standard of section 4(c)(8)
of the BHC Act.
Based on the foregoing and other facts of record,
including the requirement for disclosure as discussed
above, the Board has determined that the application
should be, and hereby is, approved. Except as provided herein with respect to the registration of Company with the CFTC, 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 San
Francisco, pursuant to delegated authority.
By order of the Board of Governors, effective
October 18, 1988.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Heller, Kelley, and La Ware.
JAMES M C A F E E

Associate Secretary of the Board
Orders Issued Under Sections 3 and 4 of the
Bank Holding Company Act
Boatmen's Bancshares, Inc.
St. Louis, Missouri
Order Approving the Merger of Bank Holding
Companies

2. 7 U.S.C. 6m.
3. Company would also be subject to reparation claims brought
pursuant to the reparations program provided for under the Commodity Exchange Act, the CFTC large trader reporting requirements, and
the position limits promulgated by the CFTC and licensed United
States commodity exchanges.




Boatmen's Bancshares, Inc., St. Louis, Missouri
("Boatmen's"), has applied for the Board's approval
under section 3(a)(5) of the Bank Holding Company

822

Federal Reserve Bulletin • December 1988

Act (12 U.S.C. § 1842(a)(5)) ("BHC Act"), to merge
with Centerre Bancorporation, St. Louis, Missouri
("Centerre"), and thereby to acquire eleven of its
twelve subsidiary banks.1 Boatmen's has also applied
under section 4(c)(8) of the BHC Act (12 U.S.C.
§ 1843(c)(8)) to acquire the nonbanking subsidiaries of
Centerre listed in Appendix A to this Order.
Notice of the applications, affording an opportunity
for interested persons to submit comments, has been
given in accordance with section 3(b) of the BHC Act
(53 Federal Register 29,950 (1988)). 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
BHC Act.2
Boatmen's controls 34 banking institutions in Missouri, Illinois, and Tennessee, and is the largest commercial banking organization in Missouri, where it
controls deposits of $6.2 billion, representing 13.9
percent of the total deposits in commercial banks in
the state.3 Centerre operates twelve banking institutions in Missouri and is the fourth largest commercial
banking organization in the state. Centerre controls
deposits of $3.9 billion, representing 8.8 percent of the
total deposits in commercial banks in Missouri. Upon
consummation of the proposed acquisition, Boatmen's
would remain the largest commercial banking organization in Missouri, and its share of total deposits in
commercial banks would increase to $10.1 billion,
representing approximately 22.6 percent of the deposits in the state. Consummation of this proposal would
have no significant adverse effect upon the concentration of commercial banking resources in Missouri.
Under Missouri law, a bank holding company may
not obtain control of any bank if the total deposits of
the target bank together with the total deposits in all
banks in Missouri controlled by the holding company
(exclusive of certificates of deposit in the face amount
of $100,000 or more, deposits from foreign sources and
deposits of other banks) exceed 13 percent of the total

1. Centerre Bank, N.A., St. Louis, Missouri; Centerre Bank of
Cape Girardeau, Cape Girardeau, Missouri; Centerre Bank of Columbia, Columbia, Missouri; Centerre Bank of Crane, Crane, Missouri;
Centerre Bank of Kansas City, N.A., Kansas City, Missouri; Centerre
Bank of Kennett, Kennett, Missouri; Centerre Bank of Neosho, N.A.,
Neosho, Missouri; Centerre Bank of Rolla, Rolla, Missouri; Centerre
Bank of Springfield, Springfield, Missouri; Centerre Bank of West
Plains, N.A., West Plains, Missouri; and Centerre Bank of Vandalia,
Vandalia, Missouri.
2. The Board received one comment in opposition to this proposal
based on a customer's problems with a loan from Centerre Bank of
Neosho, N.A., Neosho, Missouri. In light of the facts of record of this
case, the Board has determined that this comment does not warrant
denial of the applications.
3. State deposit data are as of December 31, 1987, and reflect
holding company acquisitions approved through July 31, 1988, and
bank mergers consummated through June 30, 1988.




deposits in depository institutions in Missouri.4 The
Missouri Commissioner of Finance has determined
that the proposed transaction does not violate Missouri law with regard to this limitation on total deposits.
Boatmen's and Centerre compete directly in seven
Missouri banking markets: St. Louis, Cape Girardeau,
Kansas City, Springfield, Joplin, Aurora/Monett, and
Taney County.
The St. Louis5 banking market is unconcentrated.
Boatmen's is the largest of 57 commercial banking
organizations, controlling 17.3 percent of the total
deposits in commercial banks in the market ("market
deposits"), and Centerre is the third largest commercial banking organization in the market, controlling
12.7 percent of market deposits. Upon consummation,
Boatmen's would control 30 percent of the market
deposits in the St. Louis market. The HerfindahlHirschman Index ("HHI") would increase by 439
points to 1410.6
The Cape Girardeau,7 Springfield,8 and Aurora/
Monett9 markets are each moderately or highly concentrated in terms of commercial bank deposits only.
Upon consummation, all three banking markets would
be highly concentrated. Boatmen's would control 37.7
percent of commercial bank deposits in the Cape
Girardeau market, 33.6 percent in the Springfield
market, and 27.8 percent in the Aurora/Monett market. In each of these three markets, the HHI would
increase by over 300 points to over 1800.
The Board has considered the presence of thrift
institutions in these banking markets in its analysis of
4. 1988 Mo. Laws § 362.915.
5. The St. Louis banking market is approximated by the St. Louis
Ranally Metro Area, adjusted to include all of St. Charles and
Jefferson Counties, Missouri; Pin Oak and Hamel Townships in
Madison County, Illinois; and Smith ton, Engelmann, and all of
Lebanon and Mascoutah Townships in St. Clair County, Illinois.
6. Under the revised Department of Justice Merger Guidelines,
49 Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is above 1800 is considered highly concentrated. In
such markets, the Department is likely to challenge a merger that
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 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 effects implicitly recognizes the competitive effect of limited-purpose lenders and other
non-depository financial entities.
7. The Cape Girardeau banking market is approximated by Cape
Girardeau County and Kelso Township in Scott County.
8. The Springfield banking market is approximated by Greene
County; Porter, Finley, Lincoln and Polk Townships in Christian
County, and West Benton Township in Webster County.
9. The Aurora/Monett banking market is approximated by Lawrence County; Capps Creek, Monett, Kings Prairie, Pleasant Ridge,
Ozark, Crane Creek and Pioneer Townships in Barry County; and
Grant, Pierce, Lincoln, Union, Hurley and Washington Townships in
Stone County.

Legal Developments

this proposal. 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 and accepting demand deposits. Based upon the number,
size, market shares and commercial lending activities
of thrift institutions in the relevant markets, the Board
has concluded that thrift institutions exert a significant
competitive influence that mitigates the anticompetitive effects of this proposal in these markets.11
The Kansas City12 and Joplin13 banking markets are
unconcentrated or moderately concentrated. Upon
consummation of the proposal, Boatmen's would control 16 percent of the market deposits in the Kansas
City market and 13.8 percent in the Joplin market. In
both markets, the resulting HHI would not exceed
1200.

In the Taney County banking market,14 Boatmen's
is the largest of three commercial banking organizations, controlling $73.5 million in deposits, which
represents 37.9 percent of the market deposits. Centerre is the second largest commercial banking organization in the Taney County market, controlling $66.2
million in deposits, which represents 34.2 percent of
market deposits. In order to mitigate the adverse
competitive effects of the proposal in Taney County,
Centerre will sell Centerre Bank of Branson, Branson,
Missouri, prior to the consummation of the proposed
merger, to a third party that does not currently operate
in the market.15
10. National

City Corporation,

70 FEDERAL RESERVE BULLETIN

743 (1984); The Chase Manhattan Corporation, 70 FEDERAL RESERVE
BULLETIN 529 (1984); NCNB

Bancorporation,

70 FEDERAL RESERVE

BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL
RESERVE BULLETIN 802 (1983); First Tennessee Corporation, 69
F E D E R A L RESERVE B U L L E T I N 2 9 8 ( 1 9 8 3 ) .

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 for the
following markets: In the St. Louis market, Boatmen's would control
23.5 percent of the total market deposits, and the HHI would increase
by 270 points to 908. In the Cape Girardeau market, Boatmen's would
control 29.4 percent of the total market deposits, and the HHI would
increase by 424 points to 1793. In the Springfield market, Boatmen's
would control 26.3 percent of the total market deposits, and the HHI
would increase by 205 points from 999 to 1204. In the Aurora/Monett
market, Boatmen's would control 23.8 percent of the total market
deposits, and the HHI would increase by 237 points to 1414.
12. The Kansas City banking market is approximated by the Kansas
City Ranally Metro Area.
13. The Joplin banking market is approximated by Jasper and
Newton Counties, Missouri, plus the portion of Cherokee County,
Kansas, that includes the communities of Galena and Baxter Springs.
14. The Taney County banking market is approximated by all of that
county.
15. The Board's policy with regard to divestitures intended to
remedy the anticompetitive effects resulting from a merger or acquisition proposal requires that divestitures must occur on or before




823

On the basis of the above and other facts of record,
the Board finds that consummation of Boatmen's
proposal would not have a significant adverse effect on
existing competition in any relevant market. In addition, the Board concludes that consummation of this
proposal would not have a significant adverse effect on
probable future competition in any relevant market.
The financial and managerial resources of Boatmen's and Centerre are consistent with approval. The
Board notes that the proposal will involve an exchange
of shares and Boatmen's will not acquire any significant debt as a result of this transaction. Convenience
and needs factors, including Community Reinvestment Act factors,16 are also consistent with approval.
Boatmen's has also applied, pursuant to section
4(c)(8) of the BHC Act, to acquire the nonbanking
subsidiaries of Centerre as well as Centerre's ownership interest in an automated teller machine ("ATM")
network exchange joint venture, and thereby to engage in nonbanking activities that the Board has previously determined to be permissible for a bank holding company. In this regard, the Board has considered
the effect of consummation on competition in the
provision of nonbanking services in markets where
Boatmen's and Centerre now compete.
Under this proposal, Boatmen's would acquire Centerre Trust Company of St. Louis, St. Louis, Missouri,
and the trust departments at Centerre's subsidiary
banks, which together constitute the largest trust
operation in Missouri, controlling discretionary trust
assets of $10.8 billion.17 Boatmen's, with discretionary
trust assets of $10.3 billion, ranks as the second largest
trust operation in Missouri. Upon consummation,
Boatmen's would manage $21.1 billion in trust assets,
ranking as the largest provider of trust services in
Missouri.18
In considering the competitive effects of combinations of trust companies with banking organizations,
the Board has determined that an appropriate product
is the provision of personal trust services.19 The market for this service is approximated by the state of
Missouri. As of December 31,1986, Boatmen's administered 23.8 percent of all discretionary personal trusts
administered by trust companies and trust departments of depository institutions in Missouri, while

consummation. Barnett Banks of Florida, Inc., 68 FEDERAL RESERVE
B U L L E T I N 1 9 0 ( 1 9 8 2 ) ; InterFirst

Corporation,

6 8 F E D E R A L RESERVE

BULLETIN 2 4 3 ( 1 9 8 2 ) .

16. 12 U.S.C. § 2901 et seq.
17. Data are as of December 31, 1987.
18. Nationally, Boatmen's ranks as the 35th largest trust organization, and Centerre ranks as the 33rd largest trust organization. Upon
consummation, Boatmen's would become the 14th largest provider of
trust services in the nation.
19. See Bancorp
(1985).

Hawaii,

Inc., 71 FEDERAL RESERVE BULLETIN 168

824

Federal Reserve Bulletin • December 1988

Centerre administered 21.8 percent, resulting in a
combined total of 45.6 percent of all such personal
trusts.
There are, however, numerous other providers of
personal trust services in addition to trust companies
and trust departments of depository institutions. By
one estimate, if these other providers were included in
the market, Boatmen's would administer approximately 31 percent of personal trusts in the state of
Missouri upon consummation of the proposal.20 Based
upon the numerous providers of personal trusts in the
state, as well as the numerous potential entrants into
the market, the Board concludes that consummation
of the proposal would not have a substantially adverse
effect on competition in the personal trust market.
Boatmen's and Centerre compete in other trust
services provided in markets that are regional or
national in scope. The Board concludes that the proposed merger would not result in any significant adverse effect on competition in the provision of these
trust service products.
Regarding Centerre's other nonbanking subsidiaries
and Centerre's ownership in the ATM network exchange joint venture, consummation of the proposal
would have a de minimis effect on existing competition, and there are numerous competitors for these
services. Accordingly, the Board concludes that the
proposal would not have any significant adverse effect
on existing or probable future competition in any
relevant geographic or product market.
Furthermore, there is no evidence in the record to
indicate that approval would result in 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
BHC Act is favorable and consistent with approval of
the applications to acquire the nonbanking subsidiaries
of Centerre.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved. The merger shall not be
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months after the effective date of this Order, unless
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 determinations as
to Boatmen's nonbanking activities are subject to all of
the conditions contained in Regulation Y, including
20. Although an exact HHI for this market cannot be calculated, the
estimated HHI for personal trust services in Missouri would be
approximately 1330 upon consummation of this proposal.




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
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 31, 1988.
Voting for this action: Chairman Greenspan and Governors
Johnson, Angell, Heller, Kelley, and LaWare. Absent and
not voting: Governor Seger.
JAMES M C A F E E

Associate Secretary of the Board

APPENDIX

A

Nonbanking Subsidiaries and Joint Venture
Interests to be Acquired
Centerre Trust Company of St. Louis, St. Louis,
Missouri, and thereby engage in trust company functions; Monetary Transfer System, St. Louis, Missouri,
and thereby engage in providing data processing services; Centerre Life Insurance Company, St. Louis,
Missouri, and Centerre Insurance Agency, Inc., St.
Louis, Missouri, and thereby act as a reinsurer of
credit life and credit accident and health insurance
sold in connection with extensions of credit by the
affiliate banks; Benefit Plan Services, Inc., St. Louis,
Missouri, and thereby engage in the design and administration of small to moderately sized employee benefit
and pension plans, such as defined benefit plans,
defined contribution plans, 401-K plans and profit
sharing plans; and Centerre Bank of Delaware, New
Castle, Delaware, and thereby engage in credit card
lending. The Board has determined that these activities are closely related to banking and permissible for
bank holding companies. 12 C.F.R. §§ 225.23(b)(1),
(3), (7), (8); Centerre Bancorporation, 74 FEDERAL
RESERVE BULLETIN 136 (1988) and 73 FEDERAL R E SERVE BULLETIN 365 (1987).
First Bank System, Inc.
Minneapolis, Minnesota
Order Approving Acquisition of a Bank Holding
Company
First Bank System, Inc., Minneapolis, Minnesota, a
bank holding company within the meaning of the Bank

Legal Developments

Holding Company Act (12 U.S.C. § 1841 et seq.)
("BHC Act"), has applied for the Board's approval
under section 3(a)(3) of the BHC Act (12 U.S.C.
§ 1842(a)(3)) to acquire at least 88.5 percent of the
voting shares of Central Bancorporation, Inc., Denver, Colorado ("Central Bancorporation"), and
thereby to acquire indirectly Central Bancorporation's
subsidiary banks listed in Appendix A. First Bank
System also has applied for the Board's approval
under section 4(c)(8) of the BHC Act (12 U.S.C.
§ 1843(c)(8)), to acquire Central Bancorporation Life
Insurance Company, Denver, Colorado, a nonbanking
subsidiary of Central Bancorporation, and thereby
engage in underwriting credit life insurance pursuant
to section 225.25(b)(8)(i) of the Board's Regulation Y
(12 C.F.R. § 225.25(b)(8)(i)).
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (53 Federal Register 30,098 (1988)). 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 BHC Act.'
First Bank System is the largest commercial banking
organization in Minnesota, controlling deposits of
$11.3 billion, representing approximately 29 percent of
total deposits in commercial banking organizations in
the state.2 Central Bancorporation is the fifth largest
commercial banking organization in Colorado, controlling deposits of $1.7 billion, representing approximately 8.4 percent of total deposits in commercial
banking organizations in the state.
Central Bancorporation's banking affiliates operate
solely in Colorado banking markets. First Bank System has banking affiliates in numerous banking markets, all outside of Colorado. Based upon the facts of
record, consummation of this proposal would not
result in any adverse effect upon existing or future
competition or increase the concentration of banking
resources in Colorado. Accordingly, the Board concludes that competitive factors are consistent with
approval.
Section 3(d) of the BHC Act, the Douglas Amendment, prohibits the Board from approving an application by a bank holding company to acquire control of
any bank located outside of the holding company's
home state,3 unless such acquisition is "specifically

1. The Board received protests from Community Resource Center,
Inc., First Bank Holding Company of Colorado, Historic Denver,
Inc., the Denver Chapter of the American Institute of Architects, and
the Colorado Historical Society, all of Denver, Colorado; and the
National Trust for Historic Preservation, Washington, D.C.
2. Banking data are as of December 31, 1987.
3. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were




825

authorized by the statute laws of the state in which
{the} bank is located, by language to that effect and not
merely by implication." (12 U.S.C. § 1842(d)). First
Bank System's home state is Minnesota.
Effective April 29, 1988, Colorado state law4 permitted an out-of-state bank holding company to acquire a
Colorado bank if successful in a special bidding process established to provide relief to depositors in
Colorado industrial banks not covered by federal
deposit insurance.5 The new law provided that all bids
were contingent upon regulatory approval by the Colorado State Bank Commissioner and required that any
out-of-state bank holding company seeking to acquire
a Colorado bank or bank holding company submit the
name or names under which it proposes to conduct its
business in Colorado.6 First Bank System was the sole
successful bidder. On September 19, 1988, the Colorado State Bank Commissioner approved First Bank
System's proposed acquisition of Central Bancorporation. Based on the foregoing, the Board has determined that the proposed acquisition is specifically
authorized by the statute laws of Colorado, and thus
Board approval is not prohibited by the Douglas
Amendment.
The financial and managerial resources and future
prospects of First Bank System and Central Bancorporation 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 First Bank System and Central Bancorporation
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 the safe and sound operation of the
bank holding company.

principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later.
4. Colo. Rev. Stat. § 11-22-615 (1988).
5. First Bank System's bid provided for a cash payment in exchange
for the right to acquire Central Bancorporation and other existing
Colorado bank holding companies.
6. The Colorado interstate banking statute specifically provides that
an out-of-state bank holding company shall not be eligible to make the
proposed acquisition if the proposed name is identical to or deceptively similar to the name of any existing Colorado bank or bank
holding company, or likely to cause the public to be confused,
deceived, or mistaken. COLO. REV. STAT. § 11-6.4-103(10). In this
regard, the Board received a protest from First Bank Holding Company of Colorado, Denver, Colorado, regarding First Bank System's
use of its name in the state of Colorado. To address this matter, First
Bank System has committed not to change the name of Central
Bancorporation or its banking subsidiaries. In addition, First Bank
System represented to the Colorado State Banking Commissioner that
it did not intend to use the phrase "Member First Bank System" to
display its affiliation with Central Bancorporation.

826

Federal Reserve Bulletin • December 1988

The Board received comments from Community
Resource Center, Inc., Denver, Colorado ("Community"), a nonprofit group providing support to regional
social service organizations, regarding the CRA record
of banking subsidiaries of Central Bancorporation,
including Central Bank of Denver, Denver, Colorado
("Denver Bank"). Community contended that several
banking subsidiaries of Central Bancorporation had
lower loan-to-deposit ratios than those of other local
banks, and it criticized Central Bancorporation's
record in the areas of housing-related credit and contributions to charities.
In light of these comments, the Board has reviewed
the overall CRA record of Central Bancorporation and
of the Denver Bank in particular. In the most recent
examination, Central Bancorporation's subsidiary
banks received a satisfactory CRA rating. With regard
to housing-related extensions of credit, the Board
notes that the Denver Bank, which Community particularly criticized, has generally played a larger role
than its peers in extending housing-related credit in
less affluent neighborhoods. With regard to charitable
contributions and loan-to-deposit ratios, the Board
notes that while the mandate of CRA encourages
outreach to community organizations and may involve
financial or other support for their activities, charitable
contributions are not an indicator that credit needs of
a community are being met, and loan-to-deposit ratios
are only a broad measure of lending activity. In
addition, the record of Central Bancorporation and
First Bank System in these areas is satisfactory. The
Board also notes that First Bank System has expressed a willingness to meet with Community to
discuss its concerns and is developing a plan to approve special lending programs to provide credit to
low- and moderate-income groups.
The Board has also considered that First Bank
System, in an effort to enhance the CRA performance
of the Denver Bank and each subsidiary bank of
Central Bancorporation, has committed that First
Bank System's corporate-wide CRA policy will be
implemented at each subsidiary bank of Central Bancorporation immediately following consummation of
the proposed transaction.7 Under this policy, First
Bank System has established a Community Responsibility Policy Committee, which consists of senior
managment officials, to allocate resources and evaluate the performance of First Bank System's subsidiary
banks under the CRA. First Bank System also has
developed a model CRA program to serve as a guide

for each subsidiary bank of Central Bancorporation in
developing its CRA plan. This model CRA program
provides guidance for determining the credit needs of
the community through various outreach programs
tailored to the unique characteristics of each community and specifies mechanisms for ensuring and monitoring CRA compliance at each subsidiary bank of
Central Bancorporation.
The Board also has received protests from Historic
Denver, Inc., the Denver Chapter of the American
Institute of Architects, the National Trust for Historic
Preservation, and the Colorado Historical Society.
The protestants have requested a public hearing and
that the Board not approve the applications until First
Bank System provides assurances that it will not
demolish the Central Bank West building, located in
Denver, Colorado, or until avenues to preserve the
building are explored. The protestants assert that the
Central Bank West building, which has been designated a historical landmark by the Denver City Council, is being demolished as a result of the acquisition of
Central Bancorporation by First Bank System.
In this regard, the protestants asserted that the
Federal Reserve System is required to comply with
section 106 of the National Historic Preservation Act
(16 U.S.C. § 470f) ("NHPA"), prior to acting on the
applications. Section 106 of the NHPA provides that
"(t)he head of any Federal agency having direct or
indirect jurisdiction over a proposed Federal or federally assisted undertaking in any State and the head of
any Federal department or independent agency having
authority to license any undertaking shall, prior to the
approval of the expenditure of any Federal funds on
the undertaking or prior to the issuance of any license,
as the case may be, take into account the effects of the
agency's undertaking on any district, site, building,
structure, or object that is included in or eligible for
inclusion in the National Register [of Historic
Places]." In addition, the head of the agency is required to afford the Advisory Council on Historic
Preservation a reasonable opportunity to comment on
the undertaking. The protestants also asserted that the
possible demolition of the building reflects adversely
on Central Bancorporation's CRA performance, on
the basis that participation in local community development projects is a consideration in assessing a
bank's record of performance under the CRA.
In accordance with the Board's practice and procedure for handling protested applications,8 the Federal
Reserve Bank of Minneapolis encouraged the parties
to meet to clarify the issues relating to the Central
Bank West building. Although parties were unable to

7. The Board recently approved First Bank System's corporate
CRA policy and determined that the policy was consistent with its
obligations under the CRA. First Bank System, 74 FEDERAL RESERVE
BULLETIN 6 8 9 (1988).




8. See 12 C.F.R. § 262.25(c).

Legal Developments

come to a resolution of their differences, they submitted various written submissions concerning the protests, which the Board has carefully considered.
With regard to the protestants' assertions relating to
the NHPA, in order for this statute to apply, the
Board's action in deciding the instant applications
must constitute an "undertaking" within the meaning
of the NHPA. The term "undertaking" has been
defined as "any project, activity, or program that can
result in changes in the character or use of historic
properties [and is] under the direct or indirect jurisdiction of a Federal agency or licensed or assisted by a
Federal agency." 36 C.F.R. § 800.2(o). The Board's
action on the pending applications does not, in the
Board's view, constitute an undertaking within the
meaning of the statute. In deciding Applicant's request
to acquire Central Bancorporation, the Board is not
engaging in any activity that can result in changes in
the use of the Central Bank West building.9 In 1984,
Central Bank West building was sold by Central Bancorporation, which reached an agreement with the
new owner that gives Central Bancorporation an option either to repurchase the building or to pay a
termination fee, demolish the building and deliver
cleared land to the owner. The decision whether to
repurchase the site or to return a clean site to the
owner is a private financial decision of Central Bancorporation and not a matter that is licensed or assisted by the Board. The Board notes that local efforts
are underway to resolve the issue of preservation of
this structure.
The Board has also considered the protestant's
arguments that the possible demolition reflects adversely on Central Bancorporation's performance under the CRA. The evaluation of a bank's involvement
in community development projects is relevant to the
CRA to the extent such involvement indicates a bank
is meeting the credit needs of the entire community.
As discussed above, Central Bancorporation's record
in meeting credit needs is satisfactory. With regard to
Central Bank West building in particular, no credit
activities within the meaning of the CRA are involved.
In light of these and other facts of record, the Board
does not believe the protests relating to the building
provide a basis for finding Central Bancorporation's
CRA performance unsatisfactory.

9. The Board notes that the U.S. Court of Appeals for the Seventh
Circuit held that the decision of the Federal Deposit Insurance
Corporation on an application under the Federal Deposit Insurance
Act, which employs factors similar to those found in the BHC Act, did
not constitute an "undertaking" within the meaning of NHPA.
Edwards v. First Bank of Dundee, 534 F. 2d 1242 (7th Cir. 1976). See
also Western Bancshares, Inc. v. Board of Governors of the Federal
Reserve System, 480 F. 2d 749 (10th Cir. 1973).




827

Based on these and all of the other facts of record in
this case, the Board has determined that the convenience and needs factors are consistent with approval
of these applications.10
First Bank System also has applied, pursuant to
section 4(c)(8) of the BHC Act, to acquire Central
Bancorporation Life Insurance Company and thereby
engage in underwriting credit life insurance. This
activity has been determined by the Board to be
closely related to banking and permissible for bank
holding companies. 12 C.F.R. § 225.25(b)(8)(i). Further, there is no evidence in the record to indicate that
approval of this proposal would result in undue concentration of resources, decreased or 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 consistent with approval of
the application to acquire Central Bancorporation Life
Insurance Company.
Based on the foregoing and other facts of record, the
Board has determined that the applications under
sections 3 and 4 of the BHC Act should be, and hereby
are, approved. The acquisition of Central Bancorporation and Central Life Insurance Company shall not
be consummated before the thirtieth calendar day
following the effective date of this Order, or later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or the Federal Reserve Bank of Minneapolis,
pursuant to delegated authority. The determination as
to the nonbanking activities are subject to all of the
conditions set forth in Regulation Y, including sections
225.4(d) and 225.23(b)(3) (12 C.F.R. §§ 225.4(d) and

10. The Board has carefully considered the protestants' requests for
a public hearing concerning the Central Bank West building. Although
section 3(b) of the Bank Holding Company 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. 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 the record of an applicant in
meeting the convenience and needs of its community, or to provide an
opportunity for interested persons to provide testimony. 12 C.F.R.
§ 262.25(d). However, in the requests for a hearing, the protestants do
not present any material questions of fact in dispute that relate to
matters within the Board's jurisdiction to consider. Rather, the
protestants request to examine the specifics of any plans for the
Central Bank West building, which are matters bearing on the
preservation issue being considered at the local level. In addition, in
accordance with the Board's practice and procedure for handling
protested applications, the Federal Reserve Bank of Minneapolis
encouraged the parties to meet to clarify the issues relating to the
Central Bank West building. Although parties were unable to come to
a resolution of their differences, the Board believes the parties have
had ample opportunity to present their arguments in writing and to
respond to one another's submissions. In light of these facts, the
Board believes that a public hearing is not necessary to clarify the
record in this case and would not serve any useful purpose.

828

Federal Reserve Bulletin • December 1988

225.23(b)(3)), and to the Board's authority to regulate
such modification or termination of the activities of the
holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with, or to
prevent evasion 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 25, 1988.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Heller, Kelley, and LaWare.
JAMES MCAFEE

Associate Secretary of the Board

APPENDIX

A

The Academy Boulevard Bank, d/b/a Central Bank of
Academy Boulevard, Colorado Springs, Colorado;

APPLICATIONS

APPROVED

Central Bank of Chapel Hills, N.A., Colorado Springs,
Colorado; The Central Colorado Bank, d/b/a Central
Bank of Colorado Springs, Colorado Springs, Colorado; Central Bank of Garden of the Gods, N.A.,
Colorado Springs, Colorado; Central Bank of Pueblo,
N.A., Pueblo, Colorado; The First National Bank of
Rocky Ford, Rocky Ford, Colorado; Central Bank of
Grand Junction, N.A., Grand Junction, Colorado;
Peoples Bank of Arapahoe County, d/b/a Central Bank
of Aurora, Aurora, Colorado; Central Bank of Chatfield, Jefferson County, Colorado; Central Bank of
Centennial, N.A., Littleton, Colorado; Central Bank
of Inverness, N.A., Englewood, Colorado; Central
Bank of Glenwood Springs, N.A., Glenwood Springs,
Colorado; Central Bank of Aspen, N.A., Aspen, Colorado; Central Bank of Greeley, Greeley, Colorado;
Broomfield State Bank, d/b/a Central Bank of Broomfield, Broomfield, Colorado; North Denver Bank,
d/b/a Central Bank of North Denver, Denver, Colorado; Central Bank of Westminster, N.A., Westminster, Colorado; and Central Bank of Denver, Denver,
Colorado.

UNDER BANK HOLDING COMPANY

ACT

By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon
request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 3

Applicant
Midwest Bankshares, Inc.,
Colby, Kansas

Bank(s)
First Belleville Bankshares, Inc.,
Belleville, Kansas

Effective
^
October 7, 1988

Section 4
.
Norwest Corporation,
Minneapolis, Minnesota




Nonbanking
Activity/Company
Fargo Insurance Agency, Inc.,
Fargo, North Dakota

Effective
date
October 26, 1988

Legal Developments

By Federal Reserve

829

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(s)
Alabama Bancorp,
Birmingham, Alabama
Beverly Bancorporation, Inc.,
Chicago, Illinois
CBS Bancshares, Inc.,
Spencer, Tennessee
Cedar Financial Holding, Inc.,
Fordyce, Nebraska
Clifton Bancshares, Inc.,
Wamego, Kansas
Commerce Bancorp, Inc.,
Berkeley, Illinois
County Bancorporation, Inc.,
Jackson, Missouri
Dahlonega Bancorp, Inc.,
Dahlonega, Georgia
Dakota Company, Inc.,
Minneapolis, Minnesota
South Dakota Bancorp, Inc.,
Minneapolis, Minnesota
E.N.B. Holding Company, Inc.,
Ellenville, New York
Fidelity Bancshares, Inc.,
Fort Worth, Texas
First Executive Bancorp, Inc.,
Philadelphia, Pennsylvania
First Illini Bancorp, Inc.,
Galesburg, Illinois
First National Bancorp, Inc.,
Norfolk, New York
First & Peoples Bancshares,
Inc.,
Russell, Kentucky
First Valley BankCorp.,
Seeley Lake, Montana
First Wisconsin Corporation,
Milwaukee, Wisconsin
F.W.S.B. Corporation,
Milwaukee, Wisconsin




Bank(s)
Highland Bank,
Birmingham, Alabama
First Wilmington Corp.,
Wilmington, Illinois
Citizens Bank,
Gainesboro, Tennessee
Cedar Security Bank,
Fordyce, Nebraska
First National Bank,
Clifton, Kansas
National Bank of Commerce,
Berkeley, Illinois
Century State Bancshares, Inc.,
Columbia, Missouri
First National Bank of Polk
County,
Copperhill, Tennessee
Valley National Bank,
Sioux Falls, South Dakota
Ellenville National Bank,
Ellenville, New York
Fidelity Bank,
Fort Worth, Texas
First Executive Bank,
Philadelphia, Pennsylvania
First National Bank in Galva,
Galva, Illinois
First National Bank of Lisbon,
Lisbon, New York
First & Peoples Bank,
Russell, Kentucky
First Valley Bank,
Seeley Lake, Montana
Metropolitan Bank Group, Inc.,
Bloomington, Minnesota

Reserve
Bank

Effective
date

Atlanta

September 23, 1988

Chicago

September 30, 1988

Atlanta

September 23, 1988

Kansas City

September 30, 1988

Kansas City

September 29, 1988

Chicago

September 27, 1988

St. Louis

October 14, 1988

Atlanta

September 27, 1988

Minneapolis

October 18, 1988

New York

October 7, 1988

Dallas

October 13, 1988

Philadelphia

September 30, 1988

Chicago

October 14, 1988

New York

September 23, 1988

Cleveland

September 23, 1988

Minneapolis

September 26, 1988

Chicago

September 28, 1988

830

Federal Reserve Bulletin • December 1988

Section 3—Continued
Applicant(s)
First Wisconsin Corporation,
Milwaukee, Wisconsin
F.W.S.B. Bancorporation, Inc.,
Milwaukee, Wisconsin
F & M National Corporation,
Winchester, Virginia
Ford Bank Group, Inc.,
Lubbock, Texas
Frandsen Financial Corporation,
Luck, Wisconsin
G. Fields Bancshares, Inc.,
Cassville, Missouri
Great Lakes Financial
Resources, Inc.,
Blue Island, Illinois
Hazard Bancorp,
Hazard, Kentucky
High Point Financial Corp.,
Branchville, New Jersey
Horizon Banks, Inc.,
Concord, New Hampshire
Iowa National Bankshares Corp.,
Waterloo, Iowa
Jay Financial Corporation,
Portland, Indiana
Manufacturers National
Corporation,
Detroit, Michigan
Affiliated Banc Group, Inc.,
Morton Grove, Illinois
Miners Bancshares, Inc.,
Frontenac, Kansas
Mission-Valley Bancorp,
Pleasanton, California
Morrill Bancshares, Inc.,
Sabetha, Kansas
National City Corporation,
Cleveland, Ohio
FKYN Acquisition Corp.,
New Salem, Indiana



Bank(s)

Reserve
Bank

Effective
date

St. Anthony Bancorporation,
Inc.,
Omaha, Nebraska

Chicago

October 19, 1988

Blakeley Bank and Trust
Company,
Ranson, West Virginia
Lubbock Bancorporation, Inc.
Lubbock, Texas
First State Bank,
Braham, Minnesota
Lakeside State Bank,
Isle, Minnesota
Security Bank of Southwest
Missouri,
Cassville, Missouri
Home wood Holdings, Inc.,
Omaha, Nebraska

Richmond

September 26, 1988

Dallas

October 19, 1988

Minneapolis

October 12, 1988

St. Louis

October 14, 1988

Chicago

October 7, 1988

Peoples Bank and Trust
Company,
Hazard, Kentucky
The Pocono Bank,
Milford, Pennsylvania
Horizon Bank and Trust,
Concord, New Hampshire
Oelwein State Bank,
Oelwein, Iowa
The First National Bank of
Portland,
Portland, Indiana
Affiliated Bank/Chicago,
Chicago, Illinois

Cleveland

October 11, 1988

New York

October 7, 1988

Boston

October 14, 1988

Chicago

October 4, 1988

Chicago

October 20, 1988

Chicago

October 6, 1988

The Miners State Bank of
Frontenac,
Frontenac, Kansas
Lamorinda Financial
Corporation,
Lafayette, California
Morrill & Janes Bancshares,
Inc.,
Hiawatha, Kansas
American Security Company of
Bedford Incorporated,
Bedford, Indiana

Kansas City

September 21, 1988

San Francisco

September 30, 1988

Kansas City

October 4, 1988

Cleveland

September 29, 1988

Legal Developments

831

Section 3—Continued
Applicant(s)
National Community Banks,
Inc.,
May wood, New Jersey
Ohio Bancorp,
Youngstown, Ohio
The Page Holding Company,
Plankinton, South Dakota
Presidential Holdings, Inc.,
Bourbonnais, Illinois
Rocky Mountain Bancorporation,
Inc.,
Billings, Montana
State Bancorp, Inc.,
Washington, Indiana
Stockton Bancshares, Inc.,
Stockton, Kansas
Sysco Financial, Inc.,
Lincoln wood, Illinois
The Summit Bancorporation,
Summit, New Jersey
Union Planters Corporation,
Memphis, Tennessee
Valley Banc Services Corp.,
St. Charles, Illinois
Valley Ridge Financial Corp.,
Kent City, Michigan
Vista Bancorporation,
Van Buren, Arkansas
Warren Bancorp, Inc.,
Peabody, Massachusetts
Washington Commercial
Bancorp,
Redmond, Washington
Waterloo Bancshares, Inc.,
Waterloo, Illinois

Bank(s)
National Community Bank of
New Jersey,
Rutherford, New Jersey
The Mingo National Bank of
Mingo Junction,
Mingo Junction, Ohio
Farmers and Merchants State
Bank,
Plankinton, South Dakota
Bank of Bourbonnais,
Bourbonnais, Illinois
Western Bancshares, Inc.,
Billings, Montana
Spurgeon Financial Corporation,
Spurgeon, Indiana
The Trego-WaKeeney State
Bank,
WaKeeney, Kansas
Brickyard Bank,
Chicago, Illinois
Somerset Bancorp, Inc.,
Somerville, New Jersey
Pickett County Bancshares, Inc.,
Byrdstown, Tennessee
Fox Valley Bank,
St. Charles, Illinois
Kent City State Bank,
Kent City, Michigan
Citizens Bank and Trust
Company,
Van Buren, Arkansas
Beverly National Corporation,
Beverly, Massachusetts
Redmond National Bank,
Redmond, Washington
Commercial State Bank of
Waterloo,
Waterloo, Illinois

Reserve
Bank

Effective
date

New York

October 4, 1988

Cleveland

October 20, 1988

Minneapolis

October 12, 1988

Chicago

September 27, 1988

Minneapolis

September 30, 1988

St. Louis

September 23, 1988

Kansas City

September 23, 1988

Chicago

September 27, 1988

New York

September 29, 1988

St. Louis

October 14, 1988

Chicago

October 19, 1988

Chicago

September 27, 1988

St. Louis

October 5, 1988

Boston

October 6, 1988

San Francisco

September 23, 1988

St. Louis

October 5, 1988

Section 4

Applicant
Dacotah Bank Holding Co.,
Aberdeen, South Dakota




Nonbanking
Activity/Company
Bristol Insurance, Inc.,
Bristol, South Dakota

Reserve
Bank
Minneapolis

Effective
date
September 28, 1988

832

Federal Reserve Bulletin • December 1988

Sections 3 and 4
Nonbanking
Activity/Company

Applicant
Chattahoochee Bancorp, Inc.,
Atlanta, Georgia

APPLICATIONS

APPROVED

By Federal Reserve

The Buckhead Bank,
Atlanta, Georgia
The Chattahoochee Financial
Corporation,
Marietta, Georgia

UNDER BANK MERGER

Reserve
Bank
Atlanta

Effective
date
October 7, 1988

ACT

Banks

Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon
request to the Reserve Banks.
Applicant
First City Bank of Dallas,
Dallas, Texas

First Virginia Bank-South
Central,
Amherst, Virginia
Ranson Interim Bank, Inc.,
Ranson, West Virginia




Bank(s)
First City Bank-East Dallas,
Dallas, Texas
First City Bank-Market Center,
N.A.,
Dallas, Texas
First City Bank-Valley View,
Dallas, Texas
First City Bank-Farmers Branch,
Farmers Branch, Texas
First City Bank of Garland,
N.A.,
Garland, Texas
First City National Bank in
Grand Prairie,
Grand Prairie, Texas
First City Bank of Lancaster,
Lancaster, Texas
First City Bank of Richardson,
Richardson, Texas
Colonia American National
Bank,
Roanoke, Virginia
Blakeley Bank and Trust
Company,
Ranson, West Virginia

Reserve
Bank

Effective
date

Dallas

September 29, 1988

Richmond

October 4, 1988

Richmond

September 26, 1988

Legal Developments

PENDING CASES INVOLVING

833

THE BOARD OF GOVERNORS

This list of pending cases does not include suits against the Federal Reserve Banks in which the Board of
Governors is not named a party.

Whitney v. United States, et al., No. CA3-88-1596-H
(N.D. Tex., filed July 7, 1988).
VanDyke v. Board of Governors, No. 88-5280 (8th
Cir., filed July 13, 1988).
Credit Union National Association, Inc., et al., v.
Board of Governors, No. 88-1295 (D.D.C. May 13,
1988).
Bonilla v. Board of Governors, No. 88-1464 (7th Cir.,
filed March 11, 1988).
Cohen v. Board of Governors, No. 88-1061 (D.N.J.,
filed March 7, 1988).
Stoddard v. Board of Governors, No. 88-1148 (D.C.
Cir., filed Feb. 25, 1988).
Independent Insurance Agents of America, Inc. v.
Board of Governors, No. 87-1686 (D.C. Cir., filed
Nov. 19, 1987).
Irving Bank Corporation v. Board of Governors,
No. 88-1176 (D.C. Cir., filed March 1, 1988).




National Association of Casualty and Surety Agents,
et al., v. Board of Governors, Nos. 87-1644,
87-1801, 88-1001 88-1206, 88-1245, 88-1270 (D.C.
Cir., filed Nov. 4, Dec. 21, 1987, Jan. 4, March 18,
March 30, April 7, 1988).
Teichgraeber v. Board of Governors, No. 87-2505-0
(D. Kan., filed Oct. 16, 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).
Lewis v. Board of Governors, Nos. 87-3455, 87-3545
(11th Cir., filed June 25, Aug. 3, 1987).
CBC, Inc. v. Board of Governors, No. 86-1001 (10th
Cir., filed Jan. 2, 1986).

A1

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MONEY STOCK AND BANK

CREDIT

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

POLICY

INSTRUMENTS

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

FEDERAL RESERVE

BANKS

A10 Condition and Federal Reserve note statements
All Maturity distribution of loan and security
holdings

MONETARY

AND CREDIT

AGGREGATES

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

COMMERCIAL BANKING

INSTITUTIONS

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



A19
A20
A21
A22

BANKS

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

FINANCIAL

MARKETS

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

FEDERAL

FINANCE

A28
A29
A30
A30

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

SECURITIES MARKETS AND
CORPORATE FINANCE

A34 New security issues—State and local
governments and corporations
A35 Open-end investment companies—Net sales
and asset position
A35 Corporate profits and their distribution
A36 Total nonfarm business expenditures on new
plant and equipment

54

Federal Reserve Bulletin • December 1988

A37 Domestic finance companies—Assets and
liabilities and business credit

REAL

A55 Foreign branches of U.S. banks—Balance
sheet data
A57 Selected U.S. liabilities to foreign official
institutions

ESTATE

A38 Mortgage markets
A39 Mortgage debt outstanding

CONSUMER INSTALLMENT

CREDIT

A40 Total outstanding and net change
A41 Terms

REPORTED BY BANKS

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

FLOW OF FUNDS

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

REPORTED BY NONBANKING
BUSINESS
ENTERPRISES IN THE UNITED STATES

Domestic Nonfinancial

A63 Liabilities to unaffiliated foreigners
A64 Claims on unaffiliated foreigners

SELECTED

Statistics

MEASURES

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

International
SUMMARY

A53
A54
A54
A54

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

Statistics

STATISTICS

U.S. international transactions—Summary
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks




SECURITIES HOLDINGS AND

A69 Guide to Tabular Presentation,
Statistical Releases and Special
Tables

Money Stock and Bank Credit

A3

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

1987

Q2

Q3

May

June

July'

Aug.'

Sept.

3.5
2.9
1.5
8.3

5.8
7.2
-6.5
7.6

4.3
4.0
2.5
6.6

-.2
-3.8
8.5
5.0

5.4
8.6
-4.8
6.2

11.9
9.7
5.1
10.4

-2.9
-1.9
1.1
2.5

-1.7
-2.3
6.5
5.6

3.9
3.9
5.5
5.8
10.C

3.8
6.8
7.C
6.6 r
8.c

6.3
7.7
7.5
8.7
8.5

5.3
3.7
5.6
n.a.
8.3

.2
4.5
5.4'
8.1
8.3

9.8
5.7'
7.7
3.7'
8.1'

9.1
3.7
6.8
11.3
7.8

.2
2.3
3.7
5.2
8.7

.0
1.3
1.7
n.a.
n.a.

3.9
11.9

7.8
8.C

8.2 r
6.¥

3.2
12.9

6.1
8.6'

4.3'
i5.<y

1.9
18.4

3.1
8.9

1.8
3.4

.7
14.8
10.5

6.3
13.7
3.4

11.0
11.8
6.7

8.6
10.1
21.4

11.7
6.6
7.7

12.9
6.2
23.4

9.6
8.8
25.1

7.0
12.6
20.4

-1.9
19.4
18.3

-3.8
16.0
22.2

-2.4
21.3
13.7'

6.6
14.0
9.3 r

5.2
4.7
4.1

3.0
10.7
8.7'

9.0
1.7
.0

6.5
1.3
2.1

4.5
6.1
.0

-3.0
11.8
22.2

7.6
10.7'
5.3'

8.C
8.0
5.4 r

8.3 r
8.6
11.0'

7.0
8.7
7.3

3.<r
10.0'
12.4'

5.9T
8.8
10.3'

5.4
8.5
6.3

9.9
8.3
7.2

n.a.
n.a.
-.6

Q4

Ql

2.5
1.4
2.4
7.8

institutions2

1
2
3
4

Reserves of depository
Total
Required
Nonborrowed
Monetary base

S
6
7
8
9

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

Nontransaction
10 In M2 . . . .
11 In M3 only 6

1988

1988

components

Time and savings deposits
Commercial banks
Savings
Small-denomination time®
Large-denomination time •
Thrift institutions
15 Savings
16 Small-denomination time
17 Large-denomination time
12
13
14

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

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 F e d e r i Reserve Banks plus the currency component of the money stock less
the amount of vault cash holdings of thrift institutions that is included in the
currency component of the money stock plus, for institutions not having required
reserve balances, the excess of current vault cash over the amount applied to
satisfy current reserve requirements. After the introduction of contemporaneous
reserve requirements (CRR), currency and vault cash figures are measured over
the weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock plus the remaining items seasonally
adjusted as a whole.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of depository institutions; (2) travelers checks of nonbank issuers; (3) demand
deposits at all commercial banks other than those due to depository institutions,
the U.S. government, and foreign banks and official institutions less cash items in
the process of collection and Federal Reserve float; and (4) other checkable
deposits (OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, credit union
share draft accounts, and demand deposits at thrift institutions.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, 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.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted
is the estimated amount of overnight RPs and Eurodollars held by institution-only
money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are based on monthly averages. Growth rates for debt reflect adjustments for
discontinuities over time in the levels of debt presented in other tables.
5. Sum of overnight RPs and Eurodollars, money market fund balances
(general purpose and broker-dealer), MMDAs, and savings and small time
deposits less the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposit liabilities.
6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents,
money market fund balances (institution-only), less a consolidation adjustment
that represents the estimated amount of overnight RPs and Eurodollars held by
institution-only money market mutual funds.
7. Excludes MMDAs.
8. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All IRA and Keogh accounts at commercial
banks and thrifts are subtracted from small time deposits.
9. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
10. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
11. Changes calculated from figures shown in table 1.23.

A4

Domestic Financial Statistics • December 1988

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

1988

1988

Factors

July

Aug.

Sept.

Aug. 17

Aug. 24

Aug. 31

Sept. 7

Sept. 14

Sept. 21

Sept. 28

253,673

251,530

256,979

252,047

250,017

251,874

253,011

254,921

258,506

259,277

225,800
224,319
1,481
8,140
7,242
898
0
3,508
936
15,289
11,063
5,018
18,503

223,140
223,140
0
7,194
7,194
0
0
3,267
595
17,334
11,062
5,018
18,555

226,629
224,058
2,571
8,525
7,191
1,334
0
2,722
1,154
17,951
11,062
5,018
18,606

223,742
223,742
0
7,192
7,192
0
0
3,267
369
17,478
11,062
5,018
18,552

222,259
222,259
0
7,191
7,191
0
0
3,222
426
16,916
11,062
5,018
18,562

223,018
223,018
0
7,191
7,191
0
0
3,342
501
17,822
11,062
5,018
18,572

224,034
224,034
0
7,191
7,191
0
0
2,844
1,190
17,751
11,061
5,018
18,583

225,024
224,040
984
7,495
7.191
304
0
3,031
1.192
18,180
11,062
5,018
18,597

228,026
223,886
4,140
8,887
7,191
1,696
0
2,911
990
17,692
11,062
5,018
18,611

227,983
224,405
3,578
9,715
7,191
2,524
0
2,257
909
18,413
11,063
5,018
18,625

235,965
414

235,916
396

236,382
392

236,466
398

235,641
394

235,166
397

237,046
397

237,454
389

236,170
389

235,096
389

3,695
272

3,153
227

7,684
236

2,676
223

3,116
213

3,725
259

3,178
245

3,986
221

8,971
231

12,209
235

1,857
329

1,899
377

1,848
404

1,998
357

1,873
315

1,781
540

1,795
389

1,786
332

1,813
467

1,859
440

SUPPLYING RESERVE FUNDS

1 Reserve Bank credit
2
U.S. government securities 1
3
Bought outright
4
Held under repurchase agreements., ,
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 stock 2
13 Special drawing rights certificate a c c o u n t . . .
14 Treasury currency outstanding
ABSORBING RESERVE FUNDS

15 Currency in circulation
16 Treasury cash holdings 2
Deposits, other than reserve balances, with
Federal Reserve Banks
17
Treasury
18
Foreign
19
Service-related balances and
adjustments
20
Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks 3

7,306

7,329

7,632

7,400

7,350

7,358

7,442

7,589

7,716

7,674

38,418

36,868

37,087

37,161

35,756

37,301

37,182

37,841

37,441

36,079

End-of-month figures

Wednesday figures

1988

1988

July

Aug.

Sept.

Aug. 17

Aug. 24

Aug. 31

23 Reserve Bank credit

252,440

251,520

261,855

250,637

249,301

24
U.S. government securities'
25
Bought outright
26
Held under repurchase agreements
27
Federal agency obligations
28
Bought outright
29
Held under repurchase agreements
30
Acceptances
31
Loans
32
Float
33
Other Federal Reserve assets
34 Gold stock 2
35 Special drawing rights certificate a c c o u n t . . .
36 Treasury currency outstanding

224,450
224,450
0
7,201
7,201
0
0
3,650
774
16,365
11,063
5,018
18,531

222,795
222,795
0
7,191
7,191
0
0
3,237
659
17,638
11,061
5,018
18,581

229,181
223,573
5,608
11,073
7,191
3,882
0
2,154
1,199
18,248
11,062
5,018
18,637

223,152
223,152
0
7,191
7,191
0
0
3,356
478
16,460
11,062
5,018
18,561

220,473
220,473
0
7,191
7,191
0
0
3,318
816
17,503
11,062
5,018
18,571

234,990
397

235,881
398

235,527
389

236,337
394

3,910
269

4,390
231

13,023
338

1,642
291

1,634
392

1,605
358

Sept. 7

Sept. 14

Sept. 21

Sept. 28

251,520

251,460

256,053

274,670

261,227

222,795
222,795
0
7,191
7,191
0
0
3,237
659
17,638
11,061
5,018
18,581

220,445
220,445
0
7,191
7,191
0
0
2,995
2,316
18,513
11,062
5,018
18,595

225,593
223,556
2,037
7,842
7,191
651
0
2,907
1,335
18,376
11,062
5,018
18,609

237,589
224,051
13,538
10,730
7,191
3,539
0
7,373
848
18.130
11,063
5,018
18,623

228,858
226,015
2,843
10,285
7,191
3,094
0
2,664
946
18,474
11,063
5,018
18,637

235,366
397

235,881
398

237,815
389

237,106
389

235,756
389

235,248
389

3,672
234

3,503
215

4,390
231

2,648
205

4,846
198

19,014
212

14,694
331

1,637
324

1,637
294

1,637
392

1,637
353

1,640
339

1,640
344

1,603
371

SUPPLYING RESERVE FUNDS

ABSORBING RESERVE FUNDS

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

7,200

7,020

7,899

7,120

7,170

7,020

7,410

7,447

7,888

7,509

38,352

36,234

37,433

35,560

35,370

36,231

35,678

38,777

44.131

35,799

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




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

Money Stock and Bank Credit
1.12 RESERVES AND BORROWINGS

A5

Depository Institutions1

Millions of dollars
Monthly averages 9
Reserve classification

Reserve balances with Reserve Banks 2
Total vault cash
Vault4..
Surplus 5
Total reserves
Required reserves
i
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks

1986

1987

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

1985

1988

Dec.

Dec.

Feb.

Mar.

Apr.

May

June

July

Aug.

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

37,360
24,079
22,199
1,879
59,560
58,191
1,369
827
38
303

37,673
26,155
24,449
1,706
62,123
61,094
1,029
777
93
483

34,211
28,119
25,836
2,283
60,047
58,914
1,133
3%
75
205

36,027
25,926
24,049
1,877
60,076
59,147
929
1,752
119
1,478

38,429
25,200
23,636
1,564
62,064
61,205
859
2,993
146
2,624

36,509
25,873
24,172
1,700
60,681
59,641
1,040
2,578
246
2,107

37,907
25,717
24,084
1,632
61,991
61,103
888
3,083
311
2,554

37,992
26,479
24,763
1,715
62,756
61,749
1,007
3,440
376
2,538

36,911
26,895
25,054
1,841
61,965
61,012
953
3,241
423
2,653

Sept. 21

Oct. 5

37,625
26,787
25,054
1,733
62,679
61,8%
783
2,971
408
2,075

36,532
26,924
25,079
1,845
61,611
60,430
1,181
2,438
433
1,704

Biweekly averages of daily figures for weeks ending
1988
June 1
11
12
13
14
15
16
17
18
19
20

2

Reserve balances with Reserve Banks
Total vault cash 3
Vault
Surplus 5
Total reserves 6
Required reserves
i
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks

June 15

June 29

July 13

July 27

Aug. 10

Aug. 24

Sept. r

35,707
26,265
24,418
1,847
60,125
58,943
1,182
3,120
269
2,538

38,644
25,118
23,614
1,504
62,258
61,563
696
3,465
287
2,986

37,260
26,237
24,492
1,745
61,752
60,692
1,060
2,658
337
2,138

38,831
26,270
24,629
1,641
63,460
62,599
861
3,656
352
2,340

37,399
26,647
24,889
1,758
62,288
61,085
1,203
3,268
390
2,663

37,343
26,571
24,762
1,810
62,104
61,309
796
3,339
407
2,748

36,442
27,400
25,513
1,887
61,935
60,954
981
3,245
431
2,671

37,273
26,351
24,555
1,797
61,827
60,705
1,123
3,093
432
2,482

1. These data also appear in the Board's H.3 (502) release. For address, see inside front cover.
2. Excludes required clearing balances and adjustments to compensate for
float.
3. Dates refer to the maintenance periods in which the vault cash can be used
to satisfy reserve requirements. Under contemporaneous reserve requirements,
maintenance periods end 30 days after the lagged computation periods in which
the balances are held.
4. Equal to all vault cash held during the lagged computation period by
institutions having required reserve balances at Federal Reserve Banks plus the
amount of vault cash equal to required reserves during the maintenance period at
institutions having no required reserve balances.
5. Total vault cash at institutions having no required reserve balances less the
amount of vault cash equal to their required reserves during the maintenance
period.
6. Total reserves not adjusted for discontinuities consist of reserve balances




with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash used to satisfy reserve
requirements. Such vault cash consists of all vault cash held during the lagged
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
7. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy
reserve requirements less required reserves.
8. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
9. Data are prorated monthly averages of biweekly averages.

A6

Domestic Financial Statistics • December 1988

1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS

Large Member Banks1

Averages of daily figures, in millions of dollars
1988 week ending Monday
Maturity and source
Jan. 25

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 U.S. government
agencies
For one day or under continuing contract
For all other maturities

Feb. 1

Feb. 8

Feb. 15

Feb. 22

Feb. 29

Mar. 7

Mar. 14

69,234
8,966

68,643
8,899

73,658
10,198

71,220
10,983

70,499
10,336

68,564
10,925

74,546
10,486

74,875
10,990

28,418
6,140

28,852
6,356

33,324
6,762

34,496
7,250

35,712
6,146

36,350
5,926

38,939
7,002

40,780
7,567

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

15,7%
13,614

16,800
14,309

15,386
15,290

13,137
16,451

14,778
13,610

13,368
14,974

12,705
13,797

12,181
14,617

26,596
10,378

26,307
10,268

25,172
9,986

25,709
10,605

25,270
10,130

24,686
10,652

24,513
10,778

24,704
11,583

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

35,063
14,446

36,523
15,399

35,727
15,169

34,848
14,115

36,414
13,620

32,112
13,381

35,273
13,953

35,864
14,047

5
6
7
8

1. Banks with assets of $1 billion or more as of Dec. 31, 1977.
These data also appear in the Board's H.5 (507) release. For address, see inside
front cover.




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

Policy Instruments

A7

1.14 FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Extended credit 2

Adjustment credit
and
Seasonal credit 1

Federal Reserve
Bank

After 30 days of borrowing 3

First 30 days of borrowing

On
10/26/88

Effective
date

Previous
rate

On
10/26/88

Effective
date

Previous
rate

On
10/26/88

Effective
date

Previous
rate

6 Vl

8/9/88
8/9/88
8/9/88
8/9/88
8/9/88
8/9/88

6

6 Vl

8/9/88
8/9/88
8/9/88
8/9/88
8/9/88
8/9/88

6

8.80

10/20/88
10/20/88
10/20/88
10/20/88
10/20/88
10/20/88

8. 80

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

6V1

8/10/88
8/9/88
8/9/88
8/9/88
8/11/88
8/9/88

6

8/10/88
8/9/88
8/9/88
8/9/88
8/11/88
8/9/88

6 Vl

6

8.80

10/20/88
10/20/88
10/20/88
10/20/88
10/20/88
10/20/88

Effective date

10/6/88
10/6/88
10/6/88
10/6/88
10/6/88
10/6/88
10/6/88
10/6/88
10/6/88
10/6/88
10/6/88
10/6/88

8. 80

Range of rates for adjustment credit in recent years 4

Effective date

In effect Dec. 31, 1977.
1978-—Jan.
9
20
May 11
12
July
3
10
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
1979-- J u l y 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
1980-- F e b .

15
19
May 29
30
June 13
16

Range (or
level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

6

6
6 Vl
6 Vl
7
7
IV*

6 - 6 Vi

6Vl

6V2-7

7

I-1 Vi
7V4
7/
34

8
8-8V5

7V4

m
8
SVi

85
V

8 Vi
9 Vl
9 Vl

10
10-10W
10V5

10

SVi-9Vi
9Vi

10W-11

IOV2
\m

11
II-12
12

11
11
12
12

12-13
13
12-13
12
11-12

13
13
13
12
11

11

Effective date

1980—July

28
29
Sept. 26
Nov. 17
Dec. 5

1981—May
Nov.
Dec.

5
8
2
6
4

1982—July

20
23
2
3
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17
Aug.

F.R.
Bank
of
N.Y.

Effective date

Range (or
level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

10-11
10
11
12
12-13

10
10
11
12
13

1984—Apr.

9
13
Nov. 21
26
Dec. 24

m-9
9
8 Vi
8

9
9
8VS
8 Vl
8

13-14
14
13-14
13
12

14
14
13
13
12

1985—May 20
24

lVi-%
IVi

IVi
IVi

1986—Mar.

1-lVi
7
6VS-7
6
5Vi-6
5Vi

7
7
6 Vl
6
5 Vi
5 Vi

UVl-12
1 \Vi
11-1 IVi
11
10^
10-10^
10
9Vi-10
9 Vi
9 - 9 Vi
9
8'/2-9
HVl-9
8 Vi

1114
1114
11
11
10 Vi
10
10
9 Vi
9 Vi
9
9
9
8 Vi
SVi

7
10
Apr. 21
July 11
Aug. 21
22

1987—Sept.

4
11

5W-6
6

6
6

1988—Aug.

9
11

6 - 6 Vl
6 Vi

6 Vi
6 Vi

In effect October 26, 1988

6V1

6 Vl

11

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




Range (or
level)—
All F.R.
Banks

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

A8

Domestic Financial Statistics • December 1988

1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1
Percent of deposits

Type of deposit, and
deposit interval 2

Depository institution requirements
after implementation of the
Monetary Control Act

Effective date
Net transaction accounts3'
$0 million-$40.5 million
More than $40.5 million . . .

12/15/87
12/15/87

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

10/6/83
10/6/83

Eurocurrency
All types

liabilities

1. Reserve requirements in effect on Dec. 31,1987. 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. 15, 1987, the exemption was raised from $2.9
million to $3.2 million. In determining the reserve requirements of depository
institutions, the exemption shall apply in the following order: (1) net NOW
accounts (NOW accounts less allowable deductions); (2) net other transaction
accounts; and (3) nonpersonal time deposits or Eurocurrency liabilities starting
with those with the highest reserve ratio. With respect to NOW accounts ana




11/13/80
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. 15,
1987 for institutions reporting quarterly and Dec. 29, 1987 for institutions
reporting weekly, the amount was increased from $36.7 million to $40.5 million.
5. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which a beneficial interest is
held by a depositor that is not a natural person. Also included are certain
transferable time deposits held by natural persons and certain obligations issued
to depository institution offices located outside the United States. For details, see
section 204.2 of Regulation D.

Policy Instruments

A9

1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1
Millions of dollars

1985

Type of transaction

1987

1986

Feb.

May

Apr.

Mar.

June

July

U . S . TREASURY SECURITIES

Outright transactions (excluding
transactions)
1
2
3
4

Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions

5
6
7
8
9

matched

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

22,214
4,118

0

3,500

0

346
538

0

9,029

1,600

3,658
300
21,502
-20,388
70

1,939
-2,868

800
-952
2,643

1,349

190
18,673
-20,179

2,185

893

0

0

1,000

19,763
-17,717

0

18,983
6,050

22,602
2,502

0

0

0
0

560

0
0
0
0
0

515
0
0
0

423

0

0
0

0
0
1,646
-4,324
0

0
0
1,384
-1,826
0

0
0
1,033
-87
0

3,661
0
-823
1,434

0
0
-1,102
3,724

0
0
-1,384
1,826

0
0
-997
0

1,017
0
-45
254

0

1,092
0
868
-1,688
0

0
0
-387
400

966
0
0
0

0

2,051
-2,089

0
0
-157
200

10
11
12
13

1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange

-17,459
13,853

-17,058
16,984

10,231
452
-17,974
18,938

14
15
16
17

5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange

458
100
-1,857
2,184

236

2,441

-1,620
2,050

-3,529
950

18
19
20
21

Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange

293

158

1,858

-447
1,679

1,150

500

26,499
4,218
3,500

24,078
2,502
1,000

37,171
6,802
9,099

346
1,513
1,600

560

7,160
0
0

Matched
transactions
25 Gross sales
26 Gross purchases

866,175
865,968

927,997
927,247

950,923
950,935

97,892
99,139

104,527
104,572

86,900
85,608

115,287
115,115

73,708
72,966

81,979
83,464

Repurchase
agreements1
27 Gross purchases
28 Gross sales

134,253
132,351

170,431
160,268

314,620
324,666

18,696
11,088

15,871
23,478

10,520
5,334

22,978
28,164

20,477

29,989

11,235

13,476

-7,779

All maturities
22 Gross purchases
23 Gross sales
24 Redemptions

29 Net change in U.S. government securities

0

0

0

0

0

0

0
0
-2,051
2,089

0

175
-987
150

0
0

0
0

-1,520

0
0

605

0
0
-36
87

515
0
0

-3,186

F E D E R A L 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 .
36 Total net change in System Open Market
Account

0
0

0
0

398

276

0
0
120

22,183
20,877

31,142
30,522

80,353
81,351

4,243
1,447

4,771
7,566

5,083
2,843

12,355
14,594

1,144

222

-1,274

-3

2,676

-2,807

2,239

-2,306

21,621

30,211

9,961

602

16,151

-10,585

6,683

-5,492

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.




0
0

162

-1,541

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

A10

Domestic Financial Statistics • December 1988

1.18 FEDERAL RESERVE BANKS

Condition and Federal Reserve Note Statements1

Millions of dollars
Wednesday
1988

Account
Aug. 31

Sept. 7

End of month
1988

Sept. 14

Sept. 21

July

Sept. 28

Aug.

Sept.

Consolidated condition statement
ASSETS

11,061
5,018
370

11,062
5,018
354

11,062
5,018
360

11,063
5,018
378

11,063
5,018
384

11,063
5,018
383

11,061
5,018
370

11,062
5,018
397

3,237
0
0

2,995
0
0

2,907
0
0

7,373
0
0

2,664
0
0

3,650
0
0

3,237
0
0

2,154
0
0

7,191
0

7,191
0

7,191
651

7,191
3,539

7,191
3,094

7,201
0

7,191
0

7,191
3,882

105,818
87,484
29,493
222,795
0
222,795

103,468
87,484
29,493
220,445
0
220,445

106,579
87,484
29,493
223,556
2,037
225,593

107,074
87,484
29,493
224,051
13,538
237,589

109,038
87,484
29,493
226,015
2,843
228,858

107,473
87,484
29,493
224,450
0
224,450

105,818
87,484
29,493
222,795
0
222,795

106,5%
87,484
29,493
223,573
5,608
229,181

233,223

230,631

236,342

255,692

241,807

235,301

233,223

242,408

6,283
732

10,631
735

7,600
734

7,664
735

6,788
733

7,278
729

6,283
732

8,052
736

9,797
7,109

9,801
7,977

9,838
7,804

9,203
8,192

9,557
8,184

7,561
8,075

9,797
7,109

9,528
7,984

273,593

276,209

278,758

297,945

283,534

275,408

273,593

285,185

218,068

219,963

219,246

217,900

217,385

217,240

218,068

217,676

37,868
4,390
231
392

37,315
2,648
205
353

40,417
4,846
198
339

45,771
19,014
212
344

37,402
14,694
331
371

39,994
3,910
269
291

37,868
4,390
231
392

39,038
13,023
338
358

42,881

40,521

45,800

65,341

52,798

44,464

42,881

52,757

5,624
2,613

8,315
2,896

6,265
2,915

6,816
3,365

5,842
2,953

6,504
2,611

5,624
2,613

6,853
3,277

269,186

271,695

274,226

293,422

278,978

270,819

269,186

280,563

2,083
2,041
283

2,084
2,047
383

2,085
2,047
400

2,090
2,047
386

2,097
2,047
412

2,119
2,046
424

2,083
2,041
283

2,097
2,047
478

33 Total liabilities and capital accounts

273,593

276,209

278,758

297,945

283,534

275,408

273,593

285,185

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

223,518

226,814

227,332

223,989

224,077

226,294

223,518

225,561

1 Gold certificate account
2 Special drawing rights certificate account
3
Loans
4 To depository institutions
5 Other
6 Acceptances held under repurchase agreements
Federal agency obligations
Bought outright
7
Held under repurchase agreements
8
U.S. Treasury securities
Bought outright
9
Bills
10
Notes
Bonds
11
12
Total bought outright 2
13 Held under repurchase agreements
14 Total U.S. Treasury securities
15 Total loans and securities
16 Items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies
4
19 All other
20 Total assets
LIABILITIES

21 Federal Reserve notes
Deposits
22 To depository institutions
23
U.S. Treasury—General account
24
Foreign—Official accounts
Other
25
26 Total deposits
77 Deferred credit items
^
5
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
3 > Federal Reserve notes outstanding issued to bank
«
36
LESS: Held by bank
Federal Reserve notes, net
37
Collateral held against notes net:
Gold certificate account
38
Special drawing rights certificate account
39
Other eligible assets
40
U.S. Treasury and agency securities
41

263,958
45,890
218,068

264,135
44,172
219,963

264,866
45,620
219,246

265,669
47,769
217,900

265,693
48,308
217,385

262,021
44,781
217,240

263,958
45,890
218,068

265,671
47,995
217,676

11,061
5,018
0
201,989

11,062
5,018
0
203,883

11,062
5,018
0
203,166

11,063
5,018
0
201,819

11,063
5,018
0
201,304

11,063
5,018
0
201,159

11,061
5,018
0
201,989

11,062
5,018
0
201,5%

42 Total collateral

218,068

219,963

219,246

217,900

217,385

217,240

218,068

217,676

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

A11

Maturity Distribution of Loan and Security Holdings

Millions of dollars
Wednesday
1988

Type and maturity groupings

End of month
1988

Aug. 31
1 Loans—Total
3

16 days to 90 days

6
7

Within 15 days
16 days to 90 days

9 U.S. Treasury securities—Total
10 Within 15 days'
11
16 days to 90 days
13

Over 1 year to 5 years

16 Federal agency obligations—Total
17 Within 15 days'
18
16 days to 90 days

Sept. 7

Sept. 14

Sept. 21

Sept. 28

July 29

Aug. 31

Sept. 30

3,237
3,063
174
0

2,995
2,759
236
0

2,907
2,665
242
0

7,373
7,242
131
0

2,664
2,575
89
0

3,650
3,510
140
0

3,237
3,063
174
0

2,154
1,9%
158
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
0

222,795
10,774
50,393
66,2%
55,124
13,700
26,508

220,445
7,160
49,152
68,801
55,124
13,700
26,508

225,593
9,622
51,659
68,980
55,124
13,700
26,508

237,589
23,063
50,087
69,107
55,124
13,700
26,508

228,858
14,652
52,197
62,886
58,915
13,700
26,508

224,450
7,756
56,583
64,395
53,722
15,486
26,508

222,795
10,774
50,393
66,2%
55,124
13,700
26,508

223,573
2,318
55,265
70,379
55,403
13,700
26,508

7,191
287
660
1,647
3,268
1,140
189

7,191
80
850
1,717
3,215
1,140
189

7,842
656
929
1,633
3,295
1,140
189

10,730
3,754
719
1,633
3,295
1,140
189

10,285
3,309
742
1,614
3,293
1,138
189

7,201
185
765
1,759
3,173
1,130
189

7,191
287
660
1,647
3,268
1,140
189

7,191
215
793
1,563
3,293
1,138
189

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




A12

DomesticNonfinancialStatistics • December 1988

1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE 1
Billions of dollars, averages of daily figures
1988
Item

1984
Dec.

1985
Dec.

1986
Dec.

1987
Dec.
Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Seasonally adjusted
CHANGES IN RESERVE REQUIREMENTS 2

1 Total reserves3
2
3
4
5

Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves
Monetary base

40.96

47.26

57.46

58.72

59.57

59.76

60.37

60.37

60.64

61.24

61.09

61.00

37.77
40.38
40.11
200.45

45.94
46.44
46.20
218.26

56.63
56.93
56.09
240.80

57.94
58.43
57.69
257.93

59.18
59.38
58.44
262.02

58.01
59.49
58.83
263.32

57.38
60.00
59.51
265.81

57.79
59.89
59.32
266.92

57.55
60.11
59.75
268.31

57.80
60.34
60.23
270.63

57.85
60.50
60.14
271.20

58.16
60.22
60.02
272.46

Not seasonally adjusted
6 Total reserves3
7
8
9
10

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

41.84

48.27

58.70

60.02

58.66

58.85

60.95

59.45

60.68

61.47

60.59

60.66

38.65
41.26
40.99
203.39

46.95
47.45
47.21
221.49

57.87
58.18
57.33
244.55

59.25
59.73
58.99
262.05

58.27
58.47
57.53
259.01

57.10
58.58
57.92
260.77

57.95
60.58
60.09
265.01

56.88
58.98
58.41
265.73

57.60
60.15
59.79
269.44

58.03
60.57
60.46
272.41

57.35
60.00
59.64
271.73

57.82
59.88
59.68
271.58

40.70

48.14

59.56

62.12

60.05

60.08

62.06

60.68

61.99

62.76

61.97

62.16

37.51
40.09
39.84
204.18

46.82
47.41
47.08
223.53

58.73
59.04
58.19
247.71

61.35
61.86
61.09
266.16

59.65
59.82
58.91
262.60

58.32
59.58
59.15
263.98

59.07
61.89
61.21
268.13

58.10
60.08
59.64
268.90

58.91
61.47
61.10
272.65

59.32
61.99
61.75
275.59

58.72'
61.26
61.01r
275.03

59.32
61.32
61.18
274.89

N O T ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 6

11 Total reserves3
12
13
14
15

Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves
Monetary base 5

1. Latest monthly and biweekly figures are available from the Board's H.3(502)
statistical release. Historical data and estimates of the impact on required reserves
of changes in reserve requirements are available from the Monetary and Reserves
Projections Section. Division of Monetary Affairs. Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
2. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
3. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash held during the lagged
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
4. Extended credit consists of borrowing at the discount window under the




terms and conditions established for the extended credit program to 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.
5. The monetary base not adjusted for discontinuities consists of total reserves
plus required clearing balances and adjustments to compensate for float at Federal
Reserve Banks and the currency component of the money stock plus, for institutions not having required reserve balances, the excess of current vault cash over
the amount applied to satisfy current reserve requirements. Currency and vault
cash figures are measured over the weekly computation period ending Monday.
The seasonally adjusted monetary base consists of seasonally adjusted total
reserves, which include excess reserves on a not seasonally adjusted basis, plus
the seasonally adjusted currency component of the money stock and the remaining items seasonally adjusted as a whole.
6. Reflects actual reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated with
implementation of the Monetary Control Act or other regulatory changes to
reserve requirements.

Monetary and Credit Aggregates

A13

1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1
Billions of dollars, averages of daily figures
1988
Item 2

1984
Dec.

1985
Dec.

1986
Dec.

1987
Dec.
June

July'

Aug.'

Sept.

782.3
3,025.9
3,834.9
4,552.2
8,675.6

782.5
3,031.8
3,847.1
4,572.4
8,738.2

782.4
3,034.8
3,852.1
n.a.
n.a.

206.3
7.2
290.6
278.3

207.2
7.2
290.0
278.1

208.5
7.3
288.3
278.3

2,243.5
809.0

2,249.3
815.3

2,252.4
817.3

Seasonally adjusted
1 Ml
7, M2
M3
4 L
5 Debt

551.9
2,363.6
2,978.3
3,519.4
5,907.4'

620.1
2,562.6
3,196.4
3,825.9
6,716.8r

725.4
2,807.7
3,490.8
4,134.3
7,572.7'

750.8
2,901.0
3,664.2
4,327.0
8,279.3'

776.5
3,016,5'
3,812.5'
4,509.1'
8,619.6'

156.1
5.2
244.1
146.4

167.7
5.9
267.2
179.2

180.4
6.5
303.3
235.2

196.5
7.1
288.0
259.3

204.9
7.3
289.9
274.4

1,811.7
614.7

1,942.5
633.8

2,082.3
683.1

2,150.2
763.2

6
7
8
9

Ml components
Currency'
.
Travelers checks
Demand deposits 5
Other checkable deposits 6

10
11

Nontransactions components
In M27
In M3 only 8

17
13

Savings deposits 9
Commercial Banks
Thrift institutions

122.6
162.9

124.8
176.6

155.5
215.2

178.2
236.0

188.0
241.0

189.5
242.3

190.6
243.2

190.3
242.6

14
15

Small-denomination time deposits 10
Commercial Banks
Thrift institutions

386.3
497.0

383.3
496.2

364.6
488.6

384.6
528.5

406.8
568.1

409.8
568.7

414.1
571.6

420.9
577.0

16
17

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

167.5
62.7

176.5
64.5

208.0
84.4

221.1
89.6

228.9
86.3

229.6
84.8

230.8
84.0

230.9
83.7

18
19

Large-denomination time deposits 11
Commercial Banks
Thrift institutions

270.2
146.8

284.9
151.6

288.9
150.3

323.5
161.2

334.2
167.5r

341.2
167.9

347.0
167.8

352.4
171.2

70
21

Debt components
Federal debt
Nonfederal debt

l,366.1 r
4,541.3'

l,585.3 r
5,131.5r

1,805.8'"
5,766.9'

1,956. K
6,323.2r

2,031.7r
6,587.9r

2,040.8
6,634.8

2,057.7
6,680.4

n.a.
n.a.

785.5
3,030.4
3,832.2
4,541.5
8,640.4

781.2
3,030.9
3,844.7
4,564.5
8,695.1

779.9
3,030.0
3,850.8
n.a.
n.a.

2,240.0'
796.0'

Not seasonally adjusted
77 Ml
73
74 M3
75
26

778.8
3,014.3r
3,807.9r
4,505.6 r
8,586.9''

564.5
2,373.2
2,991.4
3,532.7
5,901.1r

633.5
2,573.9
3,211.0
3,841.4
6,706.8'

740.6
2,821.4
3,507.6
4,152.3
7,556.6r

765.9
2,914.7
3,680.8
4,345.1
8,261.2r

158.5
4.9
253.0
148.2

170.2
5.5
276.9
180.9

183.0
6.0
314.4
237.3

199.4
6.5
298.5
261.6

205.8
7.6
291.0
274.4

207.9
8.2
292.6
276.8

207.9
8.2
288.7
276.4

207.9
7.9
287.0
277.1

1,808.7
618.2

1,940.3
637.1

2,080.7
686.2

2,148.8
766.1

2,235.6
793.5'

2,244.9
801.8

2,249.7
813.8

2,250.1
820.7

7.7
78
7.9
30

Ml components
Currency
Travelers checks
Demand deposits 5
Other checkable deposits

31
32

Nontransactions components
M2
M3 only 8

33
34

Money market deposit accounts
Commercial Banks
Thrift institutions

267.4
149.4

332.8
180.8

379.6
192.9

358.2
167.0

359.9
162.4

359.4
161.8

356.9
160.2

353.6
157.3

35
36

Savings deposits 9
Commercial Banks
Thrift institutions

121.5
161.5

123.7
174.8

154.2
212.9

176.7
233.3

189.6
243.8

191.4
245.6

190.9
243.8

189.7
241.9

37
38

Small-denomination time deposits 10
Commercial Banks
Thrift institutions

386.9
498.2

384.0
497.5

365.3
489.7

385.2
529.3

405.4
564.6

410.3
568.9

415.2
571.4

422.7
576.1

39
40

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

167.5
62.7

176.5
64.5

208.0
84.4

221.1
89.6

228.9
86.3

229.6
84.8

230.8
84.0

230.9
83.7

41
42

Large-denomination time deposits"
Commercial Banks 12
Thrift institutions

270.9
146.8

285.4
151.9

289.1
150.7

323.6
161.8

333.5'
166.4'

338.4
166.5

346.3
167.6

352.4
171.6

43
44

Debt components
Federal debt
Nonfederal debt

1,364.7
4,536.4'

1,583.7
5,123.1'

1,803.9
5,752.8'

1,954.1
6,307. r

2,014.9'
6,572.0'

2,022.3
6,618.2

2,035.8
6,659.3

For notes see following page.




n.a.
n.a.

A14

DomesticNonfinancialStatistics • December 1988

NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the Board's H.6 (508)
release. Historical data are available from the Monetary and Reserves Projection
section, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
2. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of depository institutions; (2) travelers checks of nonbank issuers; (3) demand
deposits at all commercial banks other than those due to depository institutions,
the U.S. government, and foreign banks and official institutions less cash items in
the process of collection and Federal Reserve float; and (4) other checkable
deposits (OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, credit union
share draft accounts, and demand deposits at thrift institutions.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, MMDAs, savings and smalldenomination time deposits (time deposits—including retail RPs—in amounts of
less than $100,000), and balances in both taxable and tax-exempt general purpose
and broker-dealer money market mutual funds. Excludes individual retirement
accounts (IRA) and Keogh balances at depository institutions and money market
funds. Also excludes all balances held by U.S. commercial banks, money market
funds (general purpose and broker-dealer), foreign governments and commercial
banks, and the U.S. government.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted
is the estimated amount of overnight RPs and Eurodollars held by institution-only
money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.




Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are based on monthly averages.
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of
depository institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. Travelers checks issued by depository institutions are included in
demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other
than those due to depository institutions, the U.S. government, and foreign banks
and official institutions less cash items in the process of collection and Federal
Reserve float.
6. Consists of NOW and ATS balances at all depository institutions, credit
union share draft balances, and demand deposits at thrift institutions.
7. Sum of overnight RPs and overnight Eurodollars, money market fund
balances (general purpose and broker-dealer), MMDAs, and savings and small
time deposits.
8. Sum of large time deposits, term RPs, and term Eurodollars of U.S.
residents, money market fund balances (institution-only), less the estimated
amount of overnight RPs and Eurodollars held by institution-only money market
funds.
9. Savings deposits exclude MMDAs.
10. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All individual retirement accounts (IRA) and
Keogh accounts at commercial banks and thrifts are subtracted from small time
deposits.
11. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
12. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.

Monetary and Credit Aggregates
1.22

A15

B A N K DEBITS A N D DEPOSIT TURNOVER1
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
1988
Bank group, or type of customer

1985

19862

1987
Jan.

Apr.

May

Seasonally adjusted

DEBITS TO

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

Mar.

Feb.

156,091.6
70,585.8
85,505.9
1,823.5
384.9

188,345.8
91,397.3
96,948.8
2,182.5
403.5

217,115.9
104,496.3
112,619.6
2,402.7
526.5

213,270.8
98,733.8
114,537.0
2,352.7
534.9

221,057.3
104,568.3
116,489.0
2,730.3
596.0

218,986.7
101,161.0
117,825.7
2,856.8
640.7

213,971.5
100,695.1
113,276.4
2,557.9
543.7

224,052.3
109,714.7
114,337.6
2,664.9
574.7

230,198.8
111,402.1
118,796.6
2,786.0
597.1

500.3
2,196.9
305.7
15.8
3.2

556.5
2,498.2
321.2
15.6
3.0

612.1
2,670.6
357.0
13.8
3.1

602.5
2,600.3
362.5
13.0
3.0

628.2
2,844.8
369.7
14.9
3.3

628.8
2,811.0
377.3
15.5
3.5

600.2
2,700.6
354.9
13.8
3.0

630.9
2,881.3
360.6
14.2
3.1

649.8
2,911.0
376.0
14.8
3.2

DEPOSIT TURNOVER

6
7
8
9
10

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

Not seasonally adjusted

DEBITS TO

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

156,052.3
70,559.2
85,493.1
1,826.4
1,223.9
385.3

188,506.4
91,500.0
97,006.6
2,184.6
1,609.4
404.1

217,124.8
104,518.6
112,606.1
2,404.8
1,954.2
526.8

210,029.1
97,840.1
112,189.0
2,565.2
2,305.6
552.5

208,899.2
98,106.5
110,792.7
2,468.6
2,102.8
526.3

233,286.6
109,557.8
123,728.8
2,825.0
2,337.5
616.5

214,848.8
101,141.9
113,706.9
2,745.3
2,372.8
603.2

222,685.5
106,335.6
116,349.9
2,601.3
2,341.0
566.4

241,133.2
117,287.7
123,845.5
2,851.4
2,557.1
598.3

499.9
2,196.3
305.6
15.8
4.0
3.2

556.7
2,499.1
321.2
15.6
4.5
3.0

612.3
2,674.9
356.9
13.8
5.3
3.1

578.7
2,430.3
347.7
13.9
6.5
3.1

610.5
2,664.6
362.8
13.5
5.9
3.0

684.3
3,005.7
406.4
15.3
6.5
3.4

601.8
2,706.2
355.7
14.4
6.6
3.3

638.6
2,895.6
372.9
14.1
6.6
3.1

679.5
3,121.4
390.3
15.2
7.2
3.2

DEPOSIT TURNOVER

17
18
19
20
21
22

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

1. Historical tables containing revised data for earlier periods may be obtained
from the Monetary and Reserves Projections Section, Division of Monetary
Affairs, Board of Governors of the Federal Reserve System, Washington, D.C.
20551.
These data also appear on the Board's G.6 (406) release. For address, see inside
front cover.
2. Annual averages of monthly figures.
3. Represents accounts of individuals, partnerships, and corporations and




of states and political subdivisions.
4. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts authorized for automatic transfer to demand deposits (ATS). ATS data are
available beginning December 1978.
5. Excludes A l a and NOW accounts, MMDA and special club accounts, such
as Christmas and vacation clubs.
6. Money market deposit accounts.

A16

Domestic Financial Statistics • December 1988

1.23 LOANS AND SECURITIES

All Commercial Banks1

Billions of dollars; averages of Wednesday figures
1987r

1988r

Category
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Seasonally adjusted
1 Total loans and securities2
2 U.S. government securities
3 Other securities
4 Total loans and leases 2
5 Commercial and industrial . . . . .
6
Bankers acceptances held . . .
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

2,230.5

2,235.3

2,233.0

2,244.8

2,264.1

2,281.3

2,304.7

2,328.5

2,348.4

2,360.8

2,374.9

2,373.7

332.6
193.2
1,704.7
561.4
5.1

332.6
195.1
1,707.5
561.3
4.4

335.0
194.5
1,703.5
562.4
4.1

336.4
192.0
1,716.5
565.2
4.3

336.4
193.7
1,734.0
569.3
4.3

340.2
195.7
1,745.4
568.6
4.7

343.8
196.6
1,764.3
578.1
4.6

346.5
196.1
1,786.0
586.3
4.4

350.5
196.5
1,801.5
592.4
4.4

348.0
196.8
1,815.9
598.3
4.4

350.5
196.4
1,827.9
599.4
4.6

352.4
194.3
1,827.0
597.2
4.5

556.4
548.4
7.9
573.7
324.6
47.1

556.9
549.4
7.5
581.2
326.3
39.3

558.3
550.2
8.1
588.4
327.8
33.4

560.9
552.2
8.7
593.7
329.8
36.5

564.9
556.3
8.7
599.2
333.0
42.1

564.0
555.8
8.2
604.9
337.0
41.2

573.5
565.5
8.1
611.3
340.4
39.5

582.0
575.1
6.9
618.6
342.8
39.8

588.1
581.3
6.8
625.0
344.4
39.3

593.9
587.4
6.5
631.4
345.3
38.6

594.7
588.4
6.3
638.7
347.0
40.1

592.7
586.4
6.3
644.7
349.1
36.3

31.6
29.6

31.8
29.5

31.8
29.5

32.0
29.6

32.4
29.5

31.8
29.3

30.9
29.4

31.4
29.6

31.1
29.6

31.6
29.6

31.4
29.4

30.5
29.3

54.5
9.1
5.7
24.0
43.4

54.1
8.2
5.5
24.6
45.8

52.2
7.5
5.3
24.6
40.4

51.7
7.6
5.4
25.1
39.8

51.0
7.4
5.1
25.3
39.8

50.1
7.8
5.1
25.4
44.2

49.5
8.3
5.1
25.7
46.0

49.3
8.0
5.1
26.0
48.9

49.2
7.9
5.0
26.5
50.8

50.2
8.2
5.0
27.2
50.5

49.6
8.1
5.2
27.3
51.8

49.4
7.4
5.2
27.8
50.2

Not seasonally adjusted
20 Total loans and securities2

2,225.3

2,234.4

2,249.2

2,257.5

2,268.8

2,281.6

2,305.9

2,325.2

2,344.6

2,350.7

2,363.5

2,370.5

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
2/
U.S. addressees 4
.
28
Non-U.S. addressees
29
Real estate
30
Individual
Security
31
32
Nonbank financial
institutions
Agricultural
33
34
State and political
subdivisions
35
Foreign banks
36
Foreign official institutions
37
Lease financing receivables
38
All other loahs

330.2
192.2
1,702.9
557.4
5.0

332.5
194.5
1,707.4
560.2
4.4

334.9
195.0
1,719.3
566.4
4.2

337.9
194.6
1,724.9
564.9
4.1

341.5
194.4
1,732.9
568.5
4.3

342.0
195.3
1,744.2
573.8
4.7

343.4
196.2
1,766.3
582.1
4.5

344.9
196.1
1,784.2
588.8
4.4

347.0
196.0
1,801.6
594.0
4.5

347.1
195.5
1,808.1
595.4
4.4

350.5
196.3
1,816.7
594.2
4.6

352.7
194.4
1,823.4
593.7
4.5

552.4
544.3
8.1
574.3
326.1
45.7

555.8
547.7
8.1
581.7
328.0
39.4

562.2
554.1
8.1
589.3
332.1
35.0

560.7
$52.8
8.0
594.1
333.3
37.3

564.2
556.0
8.2
598.5
332.4
40.5

569.1
561.2
7.9
604.1
333.9
40.6

577.6
569.7
7.9
610.3
337.4
41.2

584.4
577.3
7.1
618.1
339.9
40.4

589.5
582.6
6.9
624.8
342.3
40.8

591.0
584.0
7.0
631.5
343.8
38.2

589.6
582.9
6.7
638.7
347.1
38.3

589.2
582.6
6.6
645.5
350.8
35.3

31.6
30.5

32.2
29.8

33.1
29.3

32.2
28.9

31.4
28.5

30.8
28.3

30.8
28.6

31.2
29.3

31.2
29.9

31.4
30.3

31.3
30.3

30.8
30.3

53.6
9.3
5.7
23.7
45.1

53.1
8.2
5.5
24.3
45.0

52.2
7.9
5.3
24.6
44.0

53.5
7.8
5.4
25.2
42.3

52.2
7.6
5.1
25.4
42.7

51.0
7.7
5.1
25.6
43.4

50.0
7.9
5.1
25.9
46.9

49.3
7.7
5.1
26.1
48.3

48.9
7.8
5.0
26.7
50.3

49.5
8.2
5.0
27.2
47.7

49.0
7.9
5.2
27.2
47.5

48.6
7.6
5.2
27.6
48.0

1. These data also appear in the Board's G.7 (407) release. For address, see
inside front cover.
2. Excludes loans to commercial banks in the United States.




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

Commercial Banking Institutions

A17

1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS 1
Monthly averages, billions of dollars
1988

1987
Source

Sept.

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

MEMO
6 Domestically chartered banks' net positions
with own foreign branches,
not seasonally adjusted
Gross due from balances
7
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*
16 Seasonally adjusted
17 Not seasonally adjusted

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

176.8
176.8

174.6
176.9

178.4
179.3

180.2
180.6

178.1
180.7

175.8
176.6

183.1
182.2

194.3r
194.1

194.8'
191.r

192.5'
188.5'

196.6'
196.9"

182.8
183.4

165.2
165.3

166.7
169.0

163.2
164.1

171.1
171.4

175.0
177.6

178.9
179.8

181.1
180.2

184.5
184.3

186.1
182.4

181.7
177.7

177.9
178.2

173.7
174.3

11.6

7.9

15.2

9.1

3.1

-3.1

2.0

9.7'

8.7 r

10.8'

18.7'

9.1

-14.7
67.7
53.0

-17.1
70.4
53.3

-14.0
69.5
55.5

-16.5
71.2
54.7

-20.2
72.9
52.7

-25.3
76.6
51.4'

-22.2
72.9
50.7

-16.5r
69.7 r
53.2'

-16.3'
69.6'
53.3'

-14.0'
70.3'
56.4'

-7.2'
70.4'
63.1'

-15.6
74.8
59.1

26.3
79.7
106.0

24.9
83.2
108.2

29.2
79.8
109.0

25.6
85.2
110.9

23.3
87.3
110.6

22.1
88.6
110.7

24.2
88.3
112.4

26.2
89.9
116.1

25.0
93.6
118.6

24.8
94.1
118.9

26.0
93.9
119.8'

24.7
89.6
114.4

108.0
108.1

107.6
109.9

107.3
108.2

110.1
110.4

109.0
111.6

109.7
110.6

113.5
112.6

117.7
117.5

122.0
118.3

119.8
115.8

117.7
118.0

114.4
115.0

34.2
30.7

35.7
25.8

26.1
22.4

18.6
24.9

22.6
28.2

24.9
22.3

21.8
21.7

24.7
30.4

22.0
21.0

20.2
22.0

15.8
11.9

24.5
24.5

380.5
380.4

387.0
387.0

389.2
389.3

389.1
390.1

394.4
394.7

396.1
398.2

394.0
393.9

396.4
397.1

400.5
399.8

406.7
403.9

413.4'
412.8

419.5
419.5

1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus agencies and branches of foreign banks. New
York investment companies majority owned by foreign banks, and Edge Act
corporations owned by domestically chartered and foreign banks.
These data also appear in the Board's G.10 (411) release. For address, see
inside front cover.
2. Includes 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 1988

1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS

Last-Wednesday-of-Month Series'

Billions of dollars
1987

1988

Account
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

2,390.8
508.5
318.8
189.7
20.3
1,861.9
159.2
1,702.7
558.9
582.7
328.5
232.6

2,429.0
514.7
323.6
191.2
16.9
1,897.4
168.1
1,729.3
572.2
593.7
334.1
229.3

2,417.6
515.7
325.5
190.3
18.2
1,883.6
159.0
1,724.6
562.9
595.2
332.9
233.6

2,427.7
514.9
325.0
190.0
21.9
1,890.9
161.4
1,729.5
568.9
599.2
332.7
228.7

2,450.0
517.7
325.7
192.0
20.3
1,912.0
159.5
1,752.4
576.2
607.3
334.8
234.1

2,466.8
519.7
328.8
190.9
19.6
1,927.5
158.0
1,769.5
583.4
612.5
339.1
234.6

2,473.2
521.6
330.7
191.0
20.3
1,931.3
152.3
1,779.1
587.8
619.7
340.0
231.7

2,511.7
518.6
328.0
190.6
22.1
1,971.0
163.7
1,807.3
598.2
627.5
343.2
238.4

2,509.0
521.6
331.6
190.0
23.9
1,963.5
158.7
1,804.8
592.4
633.1
344.1
235.2

2,523.3
525.4
334.6
190.8
22.8
1,975.1
154.7
1,820.4
592.8
641.8
349.2
236.6

2,523.2
525.9
336.3
189.6
21.3
1,976.0
151.2
1,824.9
594.0
647.8
351.6
231.5

217.2
33.8
24.0
76.2

236.2
36.2
28.4
80.1

213.4
33.3
25.7
70.8

207.4
32.7
25.1
66.9

211.2
32.0
24.8
74.1

214.3
32.2
25.4
76.4

200.3
26.0
25.4
71.5

221.4
34.4
26.5
77.2

217.0
30.7
25.9
75.7

221.8
33.0
26.5
79.9

215.9
31.1
26.2
76.4

32.6
50.6

36.2
55.3

31.7
51.9

30.4
52.3

32.0
48.2

30.3
49.9

29.2
48.3

31.6
51.8

31.3
53.5

31.5
50.9

29.4
52.9

ALL 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
Individual
11
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

190.3

191.6

181.5

180.9

193.1

190.9

186.6

194.3

188.4

187.5

191.7

2,798.3

2,856.8

2,812.5

2,816.0

2,854.3

2,871.9

2,860.2

2,927.5

2,914.4

2,932.6

2,930.9

1,976.7
593.1
531.4
852.2
424.5
214.5
182.7

2,011.8
624.9
527.9
859.0
432.8
228.4
183.7

1,971.6
577.4
531.6
862.6
452.1
205.4
183.5

1,978.4
568.6
535.7
874.1
450.8
202.5
184.4

2,008.5
588.5
540.0
879.9
454.9
207.7
183.2

2,011.6
595.9
536.4
879.3
465.8
210.1
184.4

2,008.6
579.1
542.2
887.3
458.4
207.4
185.8

2,042.5
603.3
544.5
894.7
487.4
209.7
187.8

2,050.2
598.4
545.4
906.4
470.7
208.2
185.3

2,072.9
609.5
542.2
921.2
452.4
218.5
188.7

2,058.8
588.3
536.9
933.6
471.2
213.0
187.8

333.3

334.6

339.5

342.1

341.2

343.4

346.3

344.7

349.2

351.4

352.5

195.6

197.0

194.5

194.7

196.8

195.9

195.6

196.0

196.4

196.7

194.6

2,221.1
483.8
308.0
175.8
20.3
1,716.9
130.2
1,586.7
472.1
571.0
328.2
215.4

2,245.1
489.7
313.1
176.6
16.9
1,738.5
133.8
1,604.7
479.2
579.8
333.8
211.9

2,240.5
489.1
313.9
175.2
18.2
1,733.1
130.3
1,602.8
472.7
581.7
332.6
215.9

2,246.3
488.6
313.6
175.0
21.9
1,735.8
132.0
1,603.8
475.8
584.5
332.4
211.1

2,266.0
491.7
314.5
177.2
20.3
1,754.0
131.2
1,622.9
481.0
592.1
334.5
215.3

2,282.3
494.6
317.7
176.9
19.6
1,768.1
128.5
1,639.6
487.4
597.0
338.8
216.4

2,286.4
495.7
318.6
177.1
20.3
1,770.4
124.9
1,645.6
488.8
603.6
339.7
213.5

2,314.6
492.8
316.3
176.6
22.1
1,799.7
133.1
1,666.6
492.6
611.4
342.9
219.7

2,319.3
495.3
319.3
176.1
23.9
1,800.1
130.7
1,669.4
490.8
617.5
343.8
217.3

2,330.5
499.3
322.8
176.5
22.8
1,808.5
125.2
1,683.3
489.7
625.4
348.9
219.2

2,329.6
501.0
324.8
176.1
21.3
1,807.3
121.8
1,685.6
489.3
631.5
351.3
213.5

42 Total cash assets
43
Reserves with Federal Reserve Banks.
44
Cash in vault
Cash items in process of collection . . .
45
46
Demand balances at U.S. depository
institutions
47
Other cash assets

200.3
31.5
24.0
75.8

217.0
35.0
28.4
79.6

194.2
31.7
25.7
70.3

186.6
30.5
25.1
66.4

193.9
30.1
24.7
73.5

196.7
30.7
25.4
75.8

183.0
23.6
25.4
71.0

201.6
32.9
26.4
76.5

196.4
29.5
25.9
75.1

202.8
31.4
26.4
79.2

193.5
29.0
26.2
75.7

31.0
38.0

34.3
39.7

30.1
36.5

28.8
35.8

30.4
35.2

28.7
36.0

27.5
35.6

29.8
35.8

29.4
36.5

29.8
36.0

27.3
35.3

48 Other assets

120.2

126.4

116.0

118.5

123.1

121.3

118.3

125.6

121.6

123.8

127.8

49 Total assets/liabilities and capital

2,541.6

2,588.5

2,550.6

2,551.4

2,583.0

2,600.3

2,587.7

2,641.8

2,637.4

2,657.2

2,650.9

50
51
52
53
54
55
56

1,915.6
585.0
529.1
801.5
326.9
119.8
179.3

1,948.3
616.9
525.6
805.8
337.5
122.3
180.5

1,910.2
569.3
529.3
811.6
351.7
108.6
180.2

1,916.1
560.7
533.3
822.0
349.9
104.4
181.1

1,944.5
580.0
537.6
826.9
350.1
108.6
179.9

1,948.1
587.2
533.9
827.0
358.4
112.7
181.1

1,944.7
570.7
539.8
834.2
351.7
108.8
182.4

1,976.9
594.5
541.8
840.6
369.4
111.0
184.5

1,984.4
589.6
542.9
851.9
358.5
112.5
182.0

2,006.4
600.6
539.7
866.1
345.7
119.6
185.4

1,991.1
579.1
534.4
877.6
359.0
116.3
184.5

29.9
541.1

31.7
548.2

31.3
550.4

31.7
552.9

32.1
560.0

33.0
564.0

33.7
569.9

34.8
576.6

35.3
582.2

36.3
589.2

37.3
594.2

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)
MEMO

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

30 Loans and securities
31
Investment securities
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

Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
MEMO 4

57 Real estate loans, revolving
58 Real estate loans, other

1. Back data are available from the Banking and Monetary Statistics section.
Board of Governors of the Federal Reserve System, Washington, D.C., 20551.
These data also appear in the Board's weekly H.8 (510) release.
Data have been revised because of benchmarking to new Call reports beginning
January 1987.
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.
4. Memorandum items for real estate loans; revolving and other, are shown as
separate breakdowns for the first time.

Weekly Reporting Commercial Banks

A19

1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS 1
Millions of dollars, Wednesday figures
1988
Account
Aug. 3
1 Cash and balances due from depository institutions
2 Total loans, leases, and securities, net
3 U.S. Treasury and government agency
4
Trading account
5
Investment account
6
Mortgage-backed securities 2
All other maturing in
7
One year or less
8
Over one through five years
9
Over five years
10 Other securities
11
Trading account
12
Investment account
13
States and political subdivisions, by maturity
14
One year or less
15
Over one year
16
Other bonds, corporate stocks, and securities
17 Other trading account assets
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47

Federal funds sold 3
To commercial banks
To nonbank brokers and dealers in securities
Toothers
Other loans and leases, gross
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
Real estate loans
Revolving, home equity
All other
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions
For purchasing and carrying securities
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
Total assets

48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67

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
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
y
All other liabilities for borrowed money
Other liabilities and subordinated notes and debentures

68 Total liabilities
69 Residual (total assets minus total liabilities) 6
MEMO

70
71
72
73
74
75
76
77

Total loans and leases (gross) and investments adjusted'
Total loans and leases (gross) adjusted 7
Time deposits in amounts of $100,000 or more
U.S. Treasury securities maturing in one year or less . .
Loans sold outright to affiliates—total 8
Commercial and industrial
Other
Nontransaction savings deposits (including MMDAs)...

105,475
1,130,152

Sept. 7

Sept. 14

Sept. 21

Sept. 28

Aug. 17

97,008

105,681

96,737

106,736

111,668

108,944

107,388

103,545

1,134,849' 1,133,784

1,129,071

1,132,279

1,135,262

1,126,796

1,132,517

1,127,632

129,989r
16,331'
113,659
42,793r

129,386'
16,032'
113,355
42,807'

131,488'
17,928'
113,560
42,860'

130,418
16,465
113,954
43,499

130,817
16,820
113,997
43,598

132,204
17,303
114,901
43,907

132,381
17,787
114,594
43,860

131,825
18,081
113,744
43,774

131,645
16,535
115,110
44,284

18,388
44,055
8,423r
73,08 <r
1,968'
71,112
47,236
5,331
41,904
23,876
4,599

17,878
44,220
8,449'
72,876'
1,825'
71,052
47,245
5,326
41,919
23,806
4,582
75,482
46,078
19,468
9,935'
893,113'
870,696'
300,338'
1,985
298,353'
295,858'
2,495

18,190
43,777
8,732'
72,847'
1,954'
70,893
47,163
5,324
41,840
23,730
4,265
71,778
44,009
18,037
9,732
894,011'
871,508'
298,069'
2,008'
296,060'
293,615'
2,445

18,690
42,882
8,827
72,724
1,722
71,002
46,890
5,430
41,460
24,112
4,214

19,252
42,461
9,281
72,273
1,455
70,818
46,732
5,468
41,263
24,087
4,095

19,410
41,607
8,953
72,201
1,499
70,702
46,581
5,463
41,117
24,121
2,977

19,354
42,478
8,994
72,581
1,833
70,747
46,563
5,454
41,109
24,184
3,356

68,535
41,892
18,063
8,580
896,587
874,035
296,776
1,897
294,879
292,378
2,500

72,465
45,704
16,899
9,862
894,896
872,186
296,918
2,000
294,917
292,382
2,535

19,242
42,472
9,021
72,311
1,480
70,831
46,704
5,475
41,229
24,127
3,319
65,755
41,619
15,230
8,906
893,656
870,856
296,535
1,825
294,710
292,236
2,474

71,772
47,479
15,132
9,161
894,349
871,527
297,267
1,776
295,491
293,048
2,444

67,399
44,916
13,792
8,692
893,220
870,187
296,548
1,711
294,837
292,485
2,352

285,503
19,614
265,889
162,415'
51,769
24,290
4,517
22,962
12,173
5,574'
30,070'
1,867
20,986
22,417'
4,849'
35,742
852,522'
124,272'

286,925'
19,754
267,170'
162,929'
52,219'
24,832
4,562'
22,825
12,604
5,598'
30,088'
1,863
21,214'
22,503'
4,871'
35,735
853,405
121,592

18,239
43,481
8,734
72,419
1,662
70,757
47,165
5,345
41,820
23,591
4,046
69,314
44,517
16,329
8,467
893,400
870,833
296,769
1,882
294,888
292,436
2,452
287,644
19,856
267,788
163,372
52,469
25,561
4,803
22,106
12,404
5,611
30,015
2,132
20,415
22,567
4,878
35,649
852,874
121,202

288,289
20,001
268,288
164,050
51,941
25,236
4,286
22,419
13,667
5,636
30,037
2,081
21,557
22,552
4,871
35,727
855,989
123,894

288,450
20,080
268,370
163,994
51,689
24,330
4,456
22,903
12,254
5,534
29,930
2,027
21,389
22,710
4,894
35,777
854,225
125,150

289,542
20,225
269,316
164,545
49,843
23,286
3,875
22,681
12,605
5,562
29,865
1,931
20,427
22,801
4,924
35,701
853,031
128,477

290,584
20,468
270,116
164,790
48,462
21,884
4,246
22,332
12,410
5,593
29,830
2,023
20,567
22,822
4,942
35,664
853,742
128,445

290,916
20,511
270,405
165,198
46,889
21,166
3,864
21,859
12,745
5,555
29,727
2,216
20,393
23,033
4,947
35,622
852,652
127,142

1,347,010

1,362,909

1,372,080

1,364,218

1,368,350

1,358,319

215,596
170,220
5,878
3,091
20,984
6,130
791
8,501
71,959
608,571
568,224
29,876
985
8,670
816
266,123
2,663
5,855
257,604
93,411

229,546
184,153
6,157
1,656
21,771
7,169
695
7,945
73,553
609,987
569,728
29,739
987
8,716
818
264,419
2,600
6,750
255,068
93,682

235,528
185.481
6,078
1,501
25,346
7,722
651
8,749
75,362
611,997
571,826
29,899
890
8,580
802
270,439
2,450
5,938
262,051
86,986

228,724
183,247
5,814
3,514
21,396
6,037
690
8,026
73,873
613,259
572,999
29,959
884
8,600
817
266,716
2,350
9,084
255,282
89,362

216,064
172,662
6,345
1,603
19,831
6,639
702
8,283
71,506
612,108
572,247
29,607
883
8,550
821
287,568
6,681
25,603
255,285
88,719

221,612
174,349
5,775
2,070
20,730
6,373
713
11,601
70,224
612,124
572,271
29,855
893
8,251
854
272,023
2,000
25,215
244,808
90,211

70,839
42,175
19,698
8,966
892,122'
869,568r
299,944r
2,011
297,933'
295,435'
2,498
284,354
19,494
264,860
162,149'
52,128
25,424
4,002
22,702
12,065
5,599'
30,200'
2,068
21,060
22,554'
4,814'
35,664
851,644
124,830
1,360,457

231,916
181,118'
6,590
5,141
23,121'
6,246
801
8,899
74,354
605,876
566,518
29,039
1,055
8,454
810
267,562
2,314
4,344
260,903
90,033

1,356,129

220,973
176,530'
5,482
2,687
20,920'
6,377
700
8,278
73,376
607,036
567,482
29,102
1,060
8,573
818
272,765
2,450
2,580
267,735
91,038

1,361,056

229,969
183,640'
5,780
1,549
22,312'
7,031
786
8,869
72,949
607,137
567,237'
29,510
1,007
8,569'
813
268,587
2,725
5,048
260,814
91,385

1,269,741

1,265,188

1,270,028

1,255,659

1,271,187

1,280,312

1,271,934

1,275,966

1,266,195

90,716

90,941

91,028

91,351

91,722

91,768

92,284

92,384

92,125

1,103,03c 1,105,072' 1,105,549' 1,099,520
892,636
895,362'
898,227'
896,948'
189,719
186,759'
188,169'
188,233'
18,489
17,750
17,296
17,139
1,245
1,413'
1,373
1,387
965
798
918
933
448
454
454
448'
252,534
254,354'
253,958'
253,552'

1,105,748
897,993
190,976
19,422
1,289
843
446
252,236

1,105,899
897,326
191,451
19,827
1,442
9%
446
253,024

1,102,516
894,506
192,410
19,831
1,339
893
446
251,895

1,103,761
896,759
193,124
20,387
1,307
866
441
249,542

1,102,119
894,538
192,892
18,708
1,386
946
441
248,934

1. Beginning Jan. 6, 1988, the "Large bank" reporting group was revised
somewhat, eliminating some former reporters with less than $2 billion of assets
and adding some new reporters with assets greater than $3 billion.
2. Includes U.S. government-issued or guaranteed certificates of participation
in pools of residential mortgages.
3. Includes securities purchased under agreements to resell.
4. Includes allocated transfer risk reserve.
5. Includes federal funds purchased and securities sold under agreements to




Aug. 24'

Aug. 31'

Aug. 10

repurchase; for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31, 1977, see table 1.13.
6. This is 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.
8. 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 1988

1.28 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS
IN NEW YORK CITY1
Millions of dollars, Wednesday figures
1988
Account
Aug. 3
1 Cash balances due from depository institutions
2 Total loans, leases and securities, net2
Securities
3 U.S. Treasury and government agency
4
Trading account 3
5
Investment account
6
Mortgage-backed securities 4
All other maturing in
7
One year or less
8
Over one through five years
9
Over five years
10 Other securities 3
11 Trading account
12 Investment account
13
States and political subdivisions, by maturity
14
One year or less
15
Over one year
16
Other bonds, corporate stocks, and securities
17 Other trading account assets
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46

Loans and leases
Federal funds sold
To commercial banks
To nonbank brokers and dealers in securities
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
Revolving, home equity
All other
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions
For purchasing and carrying securities
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 6
All other assets 7

47 Total assets
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67

Deposits
Demand deposits
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Transaction balances other than demand deposits
(ATS, 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
Other liabilities and subordinated notes and debentures

68 Total liabilities
69 Residual (total assets minus total liabilities)9

Aug. 10

Aug. 17

Aug. 24

Aug. 31

Sept. 7

Sept. 14

Sept. 21

Sept. 28

22,272

21,024

23,592

21,663

21,672

23,295

25,567

24,973

25,240

217,880

220,101r

218,896

215,940

217,470

216,669

214,186

218,003

213,331

0
0
14,701
5,551

0
0
14,582
5,548

0
0
14,646
5,681

0
0
14,618
5,717

0
0
14,615
5,662

0
0
15,240
5,663

0
0
14,943
5,662

0
0
15,253
5,728

0
0
15,399
5,906

2,366
4,809
1,974
0
0
16,648
12,821
1,121
11,700
3,827
0

2,236
4,821
1,976
0
0
16,663
12,815
1,124
11,691
3,849
0

2,290
4,707
1,969
0
0
16,580
12,857
1,118
11,739
3,722
0

2,289
4,660
1,951
0
0
16,438
12,759
1,125
11,634
3,679
0

2,274
4,664
2,015
0
0
16,665
12,770
1,127
11,643
3,895
0

2,527
4,674
2,376
0
0
16,739
12,755
1,210
11,545
3,984
0

2,446
4,762
2,073
0
0
16,802
12,750
1,218
11,533
4,052
0

2,605
4,873
2,046
0
0
16,796
12,722
1,223
11,499
4,073
0

2,656
4,760
2,076
0
0
16,855
12,728
1,230
11,497
4,127
0

29,998
13,227
10,936
5,834
171,519
166,032
57,672
390
57,283
56,850
433
47,797
3,076
44,721
20,945
21,622
12.930
2,148
6,544
4,860
201
6,704
711
5,519
5,487
1,528
13,457
156,534
56,457

31,606
14,050
10,894
6,662
172,335r
166,98 V
58,474'
405
58,07(r
57,641r
429
47,947
3,097
44,849
20,980
21,324
11,970
2,646
6,708
4,786
188
6,762
504
6,015
5,354
1,550
13,536
157,249'
55,934r

31,265
14,357
10,374
6,534
171,445
166,038
56,899
418
56,480
56,071
409
48,380
3,109
45,271
21,067
21,710
12,318
2,742
6,650
5,036
201
6,748
482
5,514
5,407
1,567
13,473
156,404
57,095

28,995
14,137
9,231
5,627
170,946
165,524
55,748
393
55,354
54,908
447
48,805
3,119
45,686
20,898
22,269
13,084
2,889
6,295
4,777
210
6,737
754
5,327
5,421
1,579
13,477
155,889
55,243

28,923
13,116
10,180
5,626
172,362
166,924
56,268
444
55,825
55,360
465
48,874
3,135
45,739
20,986
21,338
12,498
2,520
6,320
5,782
215
6,727
707
6,026
5,439
1,572
13,524
157,266
56,265

28,430
11,689
9,610
7,131
171,403
165,962
56,624
457
56,167
55,698
468
48,757
3,138
45,619
21,038
21,438
12,192
2,734
6,512
4,488
188
6,738
668
6,022
5,442
1,582
13,562
156,260
56,603

26,723
11,553
8,932
6,239
170,880
165,381
56,923
409
56,514
56,113
401
48,728
3,158
45,571
21,143
20,783
12,175
2,197
6,411
4,872
188
6,711
576
5,455
5,499
1,597
13,565
155,718
56,731

30,548
15,752
8,794
6,001
170,548
165,044
56,756
390
56,366
55,964
402
48,911
3,187
45,724
21,233
20,342
11,413
2,629
6,300
4,578
215
6,713
671
5,624
5,504
1,610
13,531
155,406
57,978

26,444
12,850
7,722
5,871
169,776
164,267
56,648
355
56,293
55,884
409
48,842
3,098
45,743
21,334
19,430
11,217
2,208
6,005
4,866
200
6,688
711
5,546
5,509
1,630
13,513
154,633
57,999

296,610

297,059

299,583

292,846

295,407

296,567

296,485

300,954

296,570

53,406
36,819
739
1,025
5,795
4,928
659
3,442

52,778
37,176
530
471
5,319
5,248
563
3,470

56,444
39,266
577
215
6,175
5,874
648
3,688

52,250
35,875
690
583
5,862
5,019
638
3,582

54,954
39,495
586
173
5,612
6,052
527
2,508

54,811
37,993
655
192
5,571
6,491
518
3,389

53,682
38,866
621
560
5,306
4,962
556
2,809

52,054
36,707
592
184
5,028
5,478
563
3,502

55,992
37,151
550
357
5,668
5,1%
534
6,535

8,802
107,056
97,829
7,007
30
1,881
309
65,400
0
1,139
64,261
35,934

8,662
105,989
96,887
6,880
35
1,874
313
67,426
0
547
66,879
36,219

8,665
105,741
96,515
7,003
41
1,873
309
65,985
0
1,520
64,465
36,684

8,468
106,185
96,928
6,976
39
1,929
312
62,670
0
1,858
60,811
37,148

8,599
106,131
96,772
6,942
29
2,066
321
60,242
0
2,034
58,208
39,327

8,765
106,374
97,082
6,964
28
1,986
314
66,893
0
1,648
65,246
33,408

8,736
105,746
96,567
6,969
30
1,869
312
66,498
0
2,799
63,699
35,294

8,457
106,079
97,016
6,886
30
1,827
320
72,600
3,100
7,212
62,288
35,184

8,335
106,425
97,138
7,125
30
1,814
318
64,434
0
7,213
57,222
35,083

270,600

271,073

273,520

266,721

269,252

270,251

269,957

274,375

270,270

26,010

25,986

26,063

26,125

26,154

26,316

26,528

26,579

26,300

206,708
175,359
38,882
3,090

209,167'
177,92K
38,394
3,119

207,262
176,035
38,260
4,012

203,775
172,720
38,491
3,570

206,951
175,671
38,341
4,538

207,931
175,952
38,527
4,590

205,620
173,875
38,268
4,199

205,979
173,930
38,901
4,415

204,406
172,152
38,889
3,978

MEMO

70
71
72
73

Total loans and leases (gross) and investments adjusted 2 ' 10
Total loans and leases (gross) adjusted
Time deposits in amounts of $100,000 or more
U.S. Treasury securities maturing in one year or less

1. These data also appear in the Board's H.4.2 (504) release. For address, see
inside front cover.
2. Excludes trading account securities.
3. Not available due to confidentiality.
4. Includes U.S. government-issued or guaranteed certificates of participation
 residential mortgages.
in pools of
5. Includes securities purchased under agreements to resell.
http://fraser.stlouisfed.org/
6. Includes allocated transfer risk reserve.

Federal Reserve Bank of St. Louis

7. Includes trading account securities.
8. Includes federal funds purchased and securities sold under agreements to
repurchase.
9. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
10. Exclusive of loans and federal funds transactions with domestic commercial banks.

Weekly Reporting Commercial Banks
1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS'
Liabilities

A21

Assets and

Millions of dollars, Wednesday figures
1988
Account
r

Aug. 3'
1 Cash and due from depository institutions . . .
2 Total loans and securities
3 U.S. Treasury and government agency
securities
4 Other securities
5 Federal funds sold 2
6
To commercial banks in the United States.
7 To others
8 Other loans, gross
Commercial and industrial
9
10
Bankers acceptances and commercial
paper
U
All other
12
U.S. addressees
13
Non-U.S. addressees
14 To financial institutions
15
Commercial banks in the United States..
16
Banks in foreign countries
17
Nonbank financial institutions
18 To foreign governments and official
institutions
19 For purchasing and carrying securities —
20
All other
21 Other assets (claims on nonrelated parties) . .
22 Net due from related institutions
23 Total assets
24
Deposits or credit balances due to other
than directly related institutions — . .
25
Transaction accounts and credit balances 3 .
26
Individuals, partnerships, and
corporations
Other
27
28
Nontransaction accounts
Individuals, partnerships, and
29
corporations
30
Other
Borrowings from other than directly
31
related institutions
Federal funds purchased
32
33
From commercial banks in the
United States
34
From others
35
Other liabilities for borrowed money
36
To commercial banks in the
United States
37
To others
38 Other liabilities to nonrelated parties
39 Net due to related institutions
40 Total liabilities

Aug. 10

Aug. 17'

Aug. 24

Aug. 31

Sept. 7

Sept. 14

Sept. 21

Sept. 28

10,749
106,167

10,635
108,733

10,640
110,121

10,989
107,889'

10,745
108,343'

11,243
108,483

10,579
106,462

11,571
108,808

11,330
108,378

8,373
7,483
7,420
5,159
2,261
82,890
55,647

8,469
7,462
8,956
6,177
2,778
83,847
56,760

8,731
7,400
9,643
7,440
2,204
84,346
57,065

8,197'
7,40C
9,295
6,967
2,328
82,998r
56,076'

8,075'
7,719'
8,785
6,726
2,058
83,765'
56,477'

8,050
7,302
9,309
7,095
2,214
83,822
56,567

8,130
7,309
7,131
4,876
2,255
83,892
56,394

8,246
7,253
8,712
6,457
2,255
84,596
56,508

7,892
7,147
7,463
4,842
2,621
85,876
56,903

1,840
53,806
51,879
1,927
15,070
11,040
843
3,188

1,807
54,953
53,108
1,844
15,247
11,321
816
3,110

1,844
55,221
53,235
1,986
15,101
10,800
891
3,410

l,996 r
54,08<r
52,214'
1,866
15,153
11,073
900
3,180

2,036'
54,440'
52,475'
1,965
15,324
11,149
824
3,351

1,932
54,636
52,676
1,960
15,441
11,266
1,021
3,154

1,890
54,504
52,589
1,915
15,820
11,995
866
2,959

1,915
54,594
52,841
1,752
16,147
12,288
877
2,981

1,898
55,005
53,184
1,822
16,879
12,905
923
3,052

643
1,730
9,800
31,547
16,974
165,437

665
1,261
9,913
31,108
15,325
165,801

754
1,396
10,030
31,654
15,661
168,075

660
1,365
9,743'
30,987'
16,671
166,537r

639
1,265

31,556'
13,836
164,480'

646
1,275
9,892
31,123
16,084
166,933

644
1,189
9,844
30,782
15,076
162,899

677
1,445
9,819
30,984
18,884
170,246

638
1,481
9,974
31,268
15,910
166,886

43,677
4,225

43,382
3,622

43,171
3,539

43,118
3,374

42,506
3,352

42,876
3,592

42,884
3,735

43,636
4,155

43,460
3,697

2,538
1,686
39,452

2,289
1,334
39,759

2,300
1,239
39,632

2,205'
l,17(r
39,743

2,169'
1,183'
39,153

2,182
1,410
39,284

2,509
1,226
39,150

2,464
1,690
39,481

2,540
1,157
39,764

32,087
7,366

32,526
7,233

32,268
7,363

32,346
7,397

32,037
7,116

32,240
7,044

32,138
7,011

32,387
7,094

32,830
6,933

66,570
28,503

66,390
28,523

66,030
29,585

66,821
29,957

63,316
24,961

68,134
31,781

64,854
29,253

71,333
35,008

66,805
31,728

12,989
15,515
38,066

15,250
13,274
37,867

14,771
14,814
36,445

14,001'
15,956'
36,864

10,777'
14,184'
38,355

16,553
15,228
36,353

13,743
15,509
35,601

18,599
16,409
36,325

16,465
15,262
35,077

27,508
10,558
33,159
22,030
165,437

27,163
10,704
32,980
23,049
165,801

26,046
10,399
33,458
25,417
168,075

26,684
10,180
32,484'
24,114
166,537'

27,533
10,822
32,905'
25,754r
164,48C

25,757
10,596
32,663
23,261
166,933

25,390
10,211
32,415
22,746
162,899

25,343
10,982
32,138
23,139
170,246

24,228
10,850
32,488
24,132
166,886

89,968
74,112

91,235
75,304

91,881
75,750

89,849'
74,252'

90,468'
74,674'

90,122
74,769

89,591
74,152

90,062
74,563

90,631
75,592

10,06c

MEMO

41 Total loans (gross) and securities adjusted 6 ..
42 Total loans (gross) adjusted

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. These data also appear in the
Board's H.4.2 (504) release. For address, see inside front cover.
2. Includes securities purchased under agreements to resell.




3. 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 1988

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

1987
1983
Dec.

1984
Dec.

iSfr

1988

1986
Dec.
Mar.

June

Sept.

Dec.

Mar.

June

1 AH holders—Individuals, partnerships, and
corporations

293.5

302.7

321.0

363.6

335.9

340.2

339.0

343.5

328.6

346.5

2
3
4
5
6

32.8
161.1
78.5
3.3
17.8

31.7
166.3
81.5
3.6
19.7

32.3
178.5
85.5
3.5
21.2

41.4
202.0
91.1
3.3
25.8

35.9
183.0
88.9
2.9
25.2

36.6
187.2
90.1
3.2
23.1

36.5
188.2
88.7
3.2
22.4

36.3
191.9
90.0
3.4
21.9

33.9
184.1
86.9
3.5
20.3

37.2
194.3
89.8
3.4
21.9

Financial business
Nonfinancial business
Consumer
Foreign
Other

Weekly reporting banks
1987
1983
Dec.

1984
Dec. 2

3 4

Dec. '

1988

1986
Dec.
Mar.

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

Financial business
Nonfinancial business
Consumer
Foreign
Other

Sept.

Dec.

Mar.

June

146.2

157.1

168.6

195.1

178.1

179.3

179.1

183.8

181.8

191.5

24.2
79.8
29.7
3.1
9.3

25.3
87.1
30.5
3.4
10.9

25.9
94.5
33.2
3.1
12.0

32.5
106.4
37.5
3.3
15.4

28.7
94.4
36.8
2.8
15.5

29.3
94.8
37.5
3.1
14.6

29.3
96.0
37.2
3.1
13.5

28.6
100.0
39.1
3.3
12.7

27.0
98.2
41.7
3.4
11.4

30.0
103.1
42.3
3.3
12.8

1. Figures include cash items in process of collection. Estimates of gross
deposits are based on reports supplied by a sample of commercial banks. Types
of depositors in each category are described in the June 1971 BULLETIN, p. 466.
Figures may not add to totals because of rounding.
2. Beginning in March 1984, these data reflect a change in the panel of weekly
reporting banks, and are not comparable to earlier data. Estimates in billions of
dollars for December 1983 based on the new weekly reporting panel are: financial
business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1; other
9.5.
3. Beginning March 1985, financial business deposits and, by implication, total
gross demand deposits have been redefined to exclude demand deposits due to
thrift institutions. Historical data have not been revised. The estimated volume of
such deposits for December 1984 is $5.0 billion at all insured commercial banks
and $3.0 billion at weekly reporting banks.




June

5

4. Historical data back to March 1985 have been revised to account for
corrections of bank reporting errors. Historical data before March 1985 have not
been revised, and may contain reporting errors. Data for all commercial banks for
March 1985 were revised as follows (in billions of dollars): all holders, - . 3 ;
financial business, - . 8 ; nonfinancial business, - . 4 ; consumer, .9; foreign, .1;
other, - . 1 . Data for weekly reporting banks for March 1985 were revised as
follows (in billions of dollars): all holders, - . 1 ; financial business, - .7; nonfinancial business, - . 5 ; consumer, 1.1; foreign, .1; other, - . 2 .
5. Beginning March 1988, these data reflect a change in the panel of weekly
reporting banks, and are not comparable to earlier data. Estimates in billions of
dollars for December 1987 based on the new weekly reporting panel are: financial
business, 29.4; nonfinancial business, 105.1; consumer, 41.1; foreign, 3.4; other,
13.1.

Financial Markets

A23

1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1988
1983
Dec.

Instrument

1984
Dec.

1985
Dec.

1986
Dec.

1987
Dec.
Mar.

Apr.

May

June

July

Aug.

Commercial paper (seasonally adjusted unless noted otherwise)
187,658

237,586

298,779

329,991

357,129

391,305

406,484

414,312

417,788

423,599

426,685

44,455

56,485

78,443

101,072

101,958

128,680

133,946

137,838

142,322

148,125

148,224

2,441

2,035

1,602

2,265

1,428

1,371

1,093

1,422

1,448

1,340

983

97,042

110,543

135,320

151,820

173,939

173,316

180,119

185,876

184,658

185,063

187,305

35,566
46,161

1 All issuers.

42,105
70,558

44,778
85,016

40,860
77,099

43,173
81,232

43,681
89,309

45,703
92,419

47,719
90,598

45,294
90,808

44,975
90,411

47,818
91,156

1

Financial companies
Dealer-placed
paperTotal
Bank-related (not seasonally
adjusted)
Directly placed
paper
4
Total
5
Bank-related (not seasonally
adjusted)
6 Nonfinancial companies
2
3

Bankers dollar acceptances (not seasonally adjusted) 5
78,309

7 Total

78,364

68,413

64,974

70,565

63,454

64,111

63,381

64,359

63,240

64,036

Holder
8 Accepting banks
9
Own bills
10
Bills bought
Federal Reserve Banks
11
Own account
12
Foreign correspondents.
13 Others

9,355
8,125
1,230

9,811
8,621
1,191

11,197
9,471
1,726

13,423
11,707
1,716

10,943
9,464
1,479

10,243
8,825
1,417

10,295
8,929
1,366

9,412
8,588
825

9,734
8,861
873

9,655
8,702
953

9,661
8,664
888

418
729
67,807

0
671
67,881

0
937
56,279

0
1,317
50,234

0
965
58,658

0
795
52,417

0
803
53,013

0
1,050
52,918

0
1,273
53,351

0
1,114
52,471

0
9,915
53,493

Basis
14 Imports into United S t a t e s . .
15 Exports from United States .
16 All other

15,649
16,880
45,781

17,845
16,305
44,214

15,147
13,204
40,062

14,670
12,960
37,344

16,483
15,227
38,855

14,575
13,899
34,980

14,735
14,724
34,652

14,045
14,534
34,803

14,244
14,606
35,510

14,001
14,676
34,564

14,608
14,345
35,083

1. Institutions engaged primarily in activities such as, but not limited to,
commercial savings, and mortgage banking; sales, personal, and mortgage financing; factoring, finance leasing, and other business lending; insurance underwriting; and other investment activities.
2. Includes all financial company paper sold by dealers in the open market.
3. As reported by financial companies that place their paper directly with
investors.

4. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
5. Beginning January 1988, the number of respondents in the bankers acceptance survey were reduced from 155 to 111 institutions—those with $100 million
or more in total acceptances. The new reporting group accounts for over 90
percent of total acceptances activity.

1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per year
Rate
1985—Jan. 15
May 20
June 18

10.50
10.00
9.50

1986—Mar. 7
Apr. 21
July 11
Aug. 26

9.00
8.50
8.00
7.50

1
1
15
Sept. 4
Oct. 7
22
Nov. 5

7.75
8.00
8.25
8.75
9.25
9.00
8.75

1988—Feb. 2
May 11
July 14
Aug. 11

8.50
9.00
9.50
10.00

1987—Apr.
May

Month

Average
rate

Average
rate

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 —July

8.16

Sept
Oct
Nov
Dec

7.90
7.50
7.50
7.50
7.50

1986 —Jan.
Feb.
Mar.
Apr.
May
June

9.50
9.50
9.10
8.83
8.50
8.50

July
Aug
Sept
Oct
Nov
Dec

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




Month

1987
Feb

7.50
7.50
7.50
7.75
8.14
8.25
8.25
8.25
8.70
9.07
8.78
8.75

Month

1988 —Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.

A24
1.35

DomesticNonfinancialStatistics • December 1988
I N T E R E S T R A T E S M o n e y and Capital Markets
Averages, percent per year; weekly and monthly figures are averages of business day data unless otherwise noted.
1988
Instrument

1706

1988 , week ending

198/
June

July

Aug.

Sept.

Sept. 2

Sept. 9

Sept. 16

Sept. 23

Sept. 30

MONEY MARKET RATES

1 Federal funds 1 - 2
2 Discount window borrowing 1
Commercial paper 1
3
1-month
4
3-month
5
6-month
Finance paper, directly placed '
6
1-month
7
3-month
8
6-month
Bankers acceptances , 6
9
3-month
10
6-month
Certificates of deposit, secondary market
11
1-month
12
3-month
13
6-month
14 Eurodollar deposits. 3-month 8
U . S . Treasury bills'
Secondary market
3-month
6-month
1-year .
Auction average"
3-month
6-month
1-year

L
W

8.10
7.69

6.80
6.32

6.66
5.66

7.51
6.00

7.75
6.00

8.01
6.37

8.19
6.50

8.15
6.50

8.15
6.50

8.13
6.50

8.17
6.50

8.24
6.50

7.93
7.95
8.00

6.61
6.49
6.39

6.74
6.82
6.85

7.41
7.49
7.53

7.72
7.82
7.90

8.09
8.26
8.36

8.09
8.17
8.23

8.20
8.36
8.48

8.09
8.19
8.26

8.05
8.13
8.19

8.03
8.10
8.15

8.13
8.18
8.24

7.90
7.77
7.74

6.57
6.38
6.31

6.61
6.54
6.37

7.23
7.25
7.01

7.62
7.55
7.19

7.96
7.95
7.57

7.%
7.95
7.71

7.94
8.07
7.69

7.91
7.90
7.69

7.89
7.91
7.69

7.92
7.90
7.71

8.09
8.04
7.76

7.91
7.95

6.38
6.28

6.75
6.78

7.38
7.41

7.77
7.85

8.19
8.30

8.06
8.15

8.24
8.38

8.09
8.18

8.04
8.12

7.99
8.07

8.09
8.17

7.96
8.04
8.24
8.28

6.61
6.51
6.50
6.71

6.75
6.87
7.01
7.06

7.41
7.51
7.69
7.61

7.73
7.94
8.18
8.09

8.08
8.35
8.66
8.47

8.12
8.23
8.50
8.31

8.18
8.41
8.78
8.56

8.13
8.26
8.53
8.39

8.10
8.19
8.44
8.28

8.06
8.16
8.43
8.20

8.14
8.24
8.50
8.28

7.47
7.65
7.81

5.97
6.02
6.07

5.78
6.03
6.33

6.46
6.71
6.99

6.73
6.99
7.22

7.06
7.39
7.59

7.24
7.43
7.53

7.28
7.47
7.65

7.30
7.42
7.52

7.18
7.38
7.45

7.19
7.39
7.51

7.30
7.51
7.60

7.47
7.64
7.80

5.98
6.03
6.18

5.82
6.05
6.33

6.50
6.76
7.08

6.73
6.97
7.04

7.02
7.36
7.40

7.23
7.43
7.60

7.26
7.50
7.72

7.26
7.40
n.a.

7.21
7.41
n.a.

7.17
7.34
n.a.

7.23
7.48
7.48

8.42
9.27
9.64
10.12
10.50
10.62
10.97
10.79

6.45
6.86
7.06
7.30
7.54
7.67
7.85
7.78

6.77
7.42
7.68
7.94
8.23
8.39
n.a.
8.59

7.49
8.03
8.22
8.49
8.78
8.92
n.a.
9.00

7.75
8.28
8.44
8.66
8.91
9.06
n.a.
9.14

8.17
8.63
8.77
8.94
9.13
9.26
n.a.
9.32

8.09
8.46
8.57
8.69
8.87
8.98
n.a.
9.06

8.24
8.66
8.79
8.92
9.10
9.21
n.a.
9.27

8.09
8.45
8.56
8.68
8.86
8.98
n.a.
9.03

8.01
8.40
8.52
8.64
8.81
8.93
n.a.
9.00

8.07
8.44
8.54
8.67
8.85
8.96
n.a.
9.05

8.18
8.52
8.62
8.73
8.90
8.99
n.a.
9.08

10.75

8.14

8.64

9.04

9.20

9.33

9.06

9.26

9.03

9.02

9.06

9.09

8.60
9.58
9.11

6.95
7.76
7.32

7.14
8.17
7.64

7.51
7.86
7.78

7.50
7.86
7.76

7.51
7.89
7.79

7.39
7.84
7.66

7.55
7.95
7.76

7.45
7.90
7.67

7.38
7.78
7.59

7.30
7.80
7.62

7.29
7.78
7.64

12.05
11.37
11.82
12.28
12.72

9.71
9.02
9.47
9.95
10.39

9.91
9.38
9.68
9.99
10.58

10.36
9.86
10.13
10.42
11.00

10.47
9.96
10.26
10.55
11.11

10.58
10.11
10.37
10.63
11.21

10.28
9.82
10.06
10.34
10.90

10.58
10.14
10.38
10.61
11.21

10.45
9.95
10.22
10.49
11.13

10.34
9.84
10.10
10.40
11.02

10.18
9.73
9.97
10,25
10.78

10.08
9.67
9.88
10.15
10.59

12.06

9.61

9.95

10.41

10.40

10.45

10.26

10.30

10.22

10.21

10.31

10.29

10.44
4.25

8.76
3.48

8.37
3.08

9.32
3.58

9.34
3.65

9.39
3.75

9.25
3.69

9.46
3.78

9.38
3.72

9.34
3.67

9.25
3.66

9.15
3.69

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 1 1
Constant maturities 12
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
Composite 1 3
Over 10 years (long-term) . .
State and local notes and botids
Moody's series
Aaa
Baa
Bond Buyer series'Corporate bonds
Seasoned issues 16
All industries
Aaa
'.
Aa
A
Baa
A-rated, recently offered utility
bonds

MEMO: Dividend/price ratio 18
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 " f l o w e r " bond.
14. General obligations based on Thursday figures; Moody's Investors Service.
15. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
16. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
17. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of
call protection. Weekly data are based on Friday quotations.
18. Standard and Poor's corporate series. Preferred stock ratio based on a
sample of ten issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
NOTE. These data also appear in the Board's H. 15 (519) and G.13 (415) releases.
For address, see inside front cover.

Financial Markets A23
1.36 STOCK MARKET

Selected Statistics
1988

Indicator

1985

1986

1987
Jan.

Feb.

Mar.

Apr.

May

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)'
7 American Stock Exchange
(Aug. 31, 1973 = 50?
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange

108.09
123.79
104.11
56.75
114.21

136.00
155.85
119.87
71.36
147.19

161.70
195.31
140.39
74.29
146.48

140.55
168.47
121.20
70.01
119.40

145.13
173.44
126.09
72.89
124.36

149.88
181.57
135.15
71.16
125.27

148.46
181.01
133.40
69.35
121.66

144.99
176.02
127.63
68.66
120.35

152.72
184.92
136.02
72.25
129.04

152.12
184.09
136.49
71.49
129.99

149.25
179.72
132.52
70.67
130.77

151.47
182.18
136.27
71.83
133.15

186.84

236.34

286.83

250.48

258.13

265.74

262.61

256.12

270.68

269.05

263.73

267.97

229.10

264.38

316.61

267.29

276.54

295.78

300.43

296.30

306.13

307.48

297.76

297.86

109,191
8,355

141,385
11,846

188,647
13,832

174,755
9,853

184,688
9,961

176,189
12,442

162,518
10,706

153,906
8,931

195,772
11,348

166,916
9,938

144,668
9,307

145,702
8,198

Customer financing (end-of-period balances, in millions of dollars)
10 Margin credit at broker-dealers3

28,390

36,840

31,990

31,320

31,990

32,660

33,270

33,070

32,300

31,770

31,930

32,770

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

2,715
12,840

4,880
19,000

4,750
15,640

4,675
15,270

4,555
14,695

4,615
14,355

4,395
13,965

4,380
14,150

4,580
14,460

4,485
14,340

4,655
14,045

4,725
14,175

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. H , 1968;
and Regulation X, effective Nov. 1, 1971.
On Jan. 1, 1977, the Board of Governors for the first time established in
Regulation T the initial margin required for writing options on securities, setting
it at 30 percent of the current market-value of the stock underlying the option. On
Sept. 30,1985, the Board changed the required initial margin, allowing it to be the
same as the option maintenance margin required by the appropriate exchange or
self-regulatory organization; such maintenance margin rules must be approved by
the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC
approved new maintenance margin rules, permitting margins to be the price of the
option plus 15 percent of the market value of the stock underlying the option.

A26

DomesticNonfinancialStatistics • December 1988

1.37 SELECTED FINANCIAL INSTITUTIONS

Selected Assets and Liabilities

Millions of dollars, end of period
1987
Account

1985

1988

1986
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June'

July

FSLIC-insured institutions
1 Assets
2 Mortgages
3 Mortgage-backed securities
4
Contra-assets to mortgage assets'
5 Commercial loans
6 Consumer loans
7 Contra-assets to nonmortgage loans2
8 Cash and investment
securities
9 Other 3

1,070,012

1,163,851

1,239,883

1,246,983

690,717

697,451

713,488

717,933

1,250,855 1,254,772' 1,257,354' 1,261,391' 1,274,346' 1,285,146' 1,290,020
721,593

722,943r

723,856

725,62c

728,973'

733,534'

737,219

743,545

115,525

158,193

197,131

200,039

201,828

201,604

197,676

197,693'

202,466'

204,712

207,381

207,902

45,219
17,424
45,809

41,799
23,683
51,622

42,182
23,256
56,548

41,396
23,294
57,465

42,344
23,163
57,902

40,287'
23,340
58,687'

41,261'
24,005'
58,389'

39,334'
24,245'
59,126'

40,074
24,597
61,139

40,008
24,861
61,573

2,521

3,041

3,373

3,430

3,467

143,538
104,739

164,844
112,898

173,121
121,894

170,713
122,367

169,717
122,462

10 Liabilities and net worth . 1,070,012

1,163,851

1,239,883

1,246,983

890,664
196,929
100,025
96,904
23,975
52,282

916,843
246,370
109,736
136,634
27,098
49,573

922,340
247,461
111,283
136,178
27,404
49,777

11
12
13
14
15
16

Savings capital
Borrowed money
FHLBB
Other
Other
Net worth

843,932
157,666
84,390
73,276
21,756
46,657

41,281'
23,538'
58,342'
3,580

3,524

3,628

169,937
123,269'

174,099
124,047'

176,363'
124,21C

3,514'

39,433'
24,19C
60,254'

3,506

3,339

177,772
125,491

178,650
126,854

1,250,855 l,254,772r 1,257,354' 1,261,391' 1,274,346' 1,285,146' 1,290,020

1,300,038

932,616
249,917
116,363
133,554
21,941
46,382

939,079
245,96c
114,053
131,907'
23,872'
45,861'

946,790
239,325'
112,725
126,60c
25,816
45,423'

958,470
237,461'
112,389'
125,072'
22,547'
42,912'

177,949'
124,434'

962,251'
244,810'
113,029
131,781'
24,681'
42,604'

3,396

1,300,038

179,609'
125,976'

963,685
250,479'
114,994
135,485'
27,222'
43.76C

966,672
257,126
117,276
139,850
24,579
41,643

968,405
262,523
117,983
144,540
27,254
41,856

FSLIC-insured federal savings banks
17 Assets
18 Mortgages
19 Mortgage-backed securities
20
Contra-assets to mortgage assets'
71
22 Consumer loans
13 Contra-assets to nonmortgage loans
24 Finance leases plus

131,868

210,562

276,560

279,221

284,272

284,303

295,952

307,758

311,424

323,015'

329,732

333,605

72,355

113,638

158,507

161,014

164,013

163,915

171,592

178,264'

180,588'

186,819'

191,088

193,592

15,676

29,766

45.117

45,237

45,826

46,171

46,687

47,979'

79,031'

51,247

52,221

52,558

13,180

8,787
6,275
16,563

8,809
6,540
17,343

9,100
6,504
17,696

8,909
6,496
17,649

9,175
6,971
18,795

9,46C
7,378'
19,141'

9,345'
7,531'
19,616'

9,733'
7,639'
20,426'

10,083
7,907
21,149

10,127
7,921
21,451

690

712

678

698

737

800

724

708

743

704

566
33,965
24,078

591
35,347
24,070

604
34,645
24,430'

584
35,718
25,516

611
38,224'
26,418

615
38,289'
25,819'

652
39,918'
26,757

708
40,273
27,212

734
40,862
27,318

8,361

25 Cash and investment . . .
26 Other

11,723

19,034

550
34,902
24,122

27 Liabilities and net worth .

131,868

210,562

276,560

279,221

284,272

284,303

295,952

307,758

311,424

323,015'

329,732

333,605

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

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

197,298
57,551
27,350
30,201
6,293
15,416

199,114
58,277
27,947
30,330
6,350
15,481

203,196
60,716
29,617
31,099
5,324
15,036

204,329
59,206
28,280
30,926
5,838
14,930

214,169
59,704
29,169
30,535
6,602
15,478

224,168
61,553
30,456
31,097
6,084
15,947'

226,469
62,555
30,075
32,480
6,459
16,088'

232,582
66,805
31,682
35,123
7,192'
16,588'

236,677
69,347
32,177
37,170
6,717
16,8%

239,500
70,004
31,941
38,063
7,140
16,866

28
29
30
31
32
33

Savings capital
Borrowed money
FHLBB
Other
Other
Net worth

Savings banks
34 Assets
35
36

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

216,776

236,866

255,989

260,600

259,643

258,628

259,224

262,100

262,269

264,507

264,970

272,459

110,448
30,876

118,323
35,167

135,317
36,471

137,044
37,189

138,494
33,871

137,858
35,095

139,108
35,752

140,835
36,476

139,691
37,471

143,235
35,927

142,337
35,283

149,115
36,538

13,111

14,209

13,817

15,694

13,510

12,776

12,269

12,225

13,203

12,490

16,729

12,222

19,481

25,836

30,202

31,144

32,772

32,241

32,423

32,272

31,072

31,861

30,455

33,017

2,323
21,199
6,225
13,113

2,185
20,459
6,894
13,793

2,034
18,062
5,529
14,557

2,046
17,583
5,063
14,837

2,003
18,772
5,864
14,357

1,994
18,780
4,841
15,043

2,053
18,271
5,002
14,346

2,033
18,336
4,881
15,042

2,013
18,549
5,237
15,033

1,933
18,298
5,383
15,380

1,810
18,022
4,709
15,623

1,868
18,376
5,449
15,874

43 Liabilities

216,776

236,866

255,989

260,600

259,643

258,628

259,224

262,100

262,269

264,507

264,970

272,459

44 Deposits
Regular
45
Ordinary savings .
46
47
Time
Other
48
49 Other liabilities
50 General reserve
accounts

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

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

199,336
193,777
42,045
109,486
5,559
34,226

202,030
1%,724
42,493
112,231
5,306
36,167

201,497
196,037
41,959
112,429
5,460
35,720

199,545
194,322
41,047
112,781
5,223
36,836

200,391
195,336
41,234
113,751
5,055
35,787

203,407
198,273
41,867
115,529
5,134
35,737

203,273
197,801
41,741
115,887
5,472
35,827

205,692
200,098
42,403
117,297
5,594
35,836

204,187
198,354
42,824
116,683
5,833
38,850

210,751
204,851
43,228
121,356
5,900
37,584

12,823

18,105

20,365

21,133

20,633

20,514

20,894

21,024

21,109

21,179

20,553

21,559

37
38
39
40
41
42




Financial Markets A23
1.37—Continued
1987
Account

1985

1988

1986
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June r

July

169,111

169,175

172,456

172,345

173,276

109,797
59,314

109,913
59,262

112,595
59,855

112,573
59,772

113,068
60,208

101,965
65,732
36,233
156,045
101,847
54,198

103,271
66,431
36,840
155,105
101,048
54,057

105,704
68,213
37,491
157,764
103,129
54,635

105,800
68,658
37,142
158,186
103,347
54,839

107,065
69,626
37,439
159,314
104,256
55,058

n.a.

n.a.

Credit unions 5
51 Total assets/liabilities
and capital
52
53

Federal
State

54 Loans outstanding . .
55
Federal
56
State
57 Savings
58
Federal
59
State

118,010

147,726

77,861
40,149

95,483
52,243

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

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

1 t 1 1 t
n.a.

n.a.

n.a.

n.a.

n.a.

1 1 1 1 1

Life insurance companies

60 Assets
61
62
63
64
65
66
67
68
69
70
71

Securities
Government . . . . .
United States 6 ..
State and local .
Foreign 7
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets

825,901

937,551

1,021,148

1,024,460

1,033,170

1,042,350

1,052,645

1,065,549

1,075,541

1,094,827

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

84,640
59,033
11,659
13,948
492,807
401,943
90,864
193,842
31,615
54,055
80,592

90,782
64,880
11,363
14,539
549,426
455,678
93,748
206,507
33,235
53,413
87,785

91,227
65,186
11,539
14,502
548,767
459,537
89,230
208,839
33,538
53,334
88,755

91,302
64,551
11,758
14,993
553,486
461,942
91,544
212,375
34,016
53,313
88,678

91,682
64,922
11,749
15,011
563,019
469,207
93,812
212,637
34,178
53,265
87,569

92,497
65,534
11,859
15,104
571,070
476,448
94,622
213,182
34,503
52,720
88,673

92,408
65,218
12,033
15,157
580,392
484,403
95,989
214,815
34,845
52,604
90,499

93,946
66,749
11,976
15,221
587,846
490,285
97,561
215,383
34,964
52,568
90,834

86,711
58,988
11,016
16,707
606,445
503,728
102,717
219,012
35,484
53,013
94,162

1. Contra-assets are credit-balance accounts that must be subtracted from the
corresponding gross asset categories to yield net asset levels. Contra-assets to
mortgage loans, contracts, and pass-through securities include loans in process,
unearned discounts and deferred loan fees, valuation allowances for mortgages
"held for sale," and specific reserves and other valuation allowances.
2. Contra-assets are credit-balance accounts that must be subtracted from the
corresponding gross asset categories to yield net asset levels. Contra-assets to
nonmortgage loans include loans in process, unearned discounts and deferred loan
fees, and specific reserves and valuation allowances.
3. Holding of stock in Federal Home Loan Bank and Finance leases plus
interest are included in "Other" (line 9).
4. Excludes checking, club, and school accounts.
5. Data include all federally insured credit unions, both federal and state
chartered, serving natural persons.
6. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
7. Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.




NOTE. FSLIC-insured institutions: Estimates by the FHLBB for all institutions
insured by the FSLIC and based on the FHLBB thrift Financial Report.
FSLIC-insured federal savings banks: Estimates by the FHLBB for federal
savings banks insured by the FSLIC and based on the FHLBB thrift Financial
Report.
Savings banks: Estimates by the National Council of Savings Institutions for all
savings banks in the United States and for FDIC-insured savings banks that have
converted to federal savings banks.
Credit unions: Estimates by the National Credit Union Administration for
federally chartered and federily 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

Domestic Financial Statistics • December 1988

1.38 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation

Fiscal
year
1986

Fiscal
year
1987

1988
Apr.

U.S. budget*
1 Receipts, total
2 On-budget
3 Off-budget
4 Outlays, total
5 On-budget
6
Off-budget
7 Surplus, or deficit ( - ) , total
8
On-budget
Off-budget
9
Source of financing (total)
Borrowing from the public
Operating cash (decrease, or increase
(-)l
12 O t h e r

10
11

769,091
568,862
200,228
990,258
806,760
183,498
-221,167
-237,898
16,731

854,143
640,741
213,402
1,004,586
810,754
193,832
-150,444
-170,014
19,570

May

109,323
81,993
27,330
95,554
79,629
15,925
13,769
2,364
11,405

59,711
39,764
19,947
82,295
64,688
17,607
-22,583
-24,924
2,340

June

99,205
77,643
21,562
90,071
72,888
17,184
9,134
4,755
4,379

July

Aug.

60,690
40,980
19,710
83,634
66,818
16,816
-22,944
-25,838
2,894

69,479
51,015
18,464
92,561
74,756
17,805
-23,082
-23,741
659

Sept.

97,803
75,586
22,217
87,588
70,071
17,518
10,214
5,515
4,699

236,187

150,070

-334

7,559

11,391

3,665

23,370

14,665

-14,324
-696

-5,052
5,426

-23,276
9,841

27,223
-12,199

-20,638
113

15,696
3,583

10,954
-11,242

-31,444
6,564

31,384
7,514
23,870

36,436
9,120
27,316

46,189
16,186
30,003

18,966
2,871
16,095

39,604
9,762
29,842

23,908
3,910
19,998

12,954
4,390
8,564

44,398
13,024
31,375

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 monetaiy fund; other cash and monetary assets; accrued interest
payable to the public; allocations of special drawing rights; deposit funds;
miscellaneous liability (including checks outstanding) and asset accounts;
seigniorage; increment on gold; net gain/loss for U.S. currency valuation adjustment; net gain/loss for IMF valuation adjustment; and profit on the sale of gold.
SOURCE. Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government and the Budget of the U.S. Government.

Federal Finance

A29

1.39 U.S. BUDGET RECEIPTS AND OUTLAYS 1
Millions of dollars
Calendar year
Source or type

Fiscal
year
1986

Fiscal
year
1987

1988

1986

July

Aug.

Sept.

RECEIPTS
769,091

1 All sources
2 Individual income taxes, net
3
Withheld
4
Presidential Election Campaign Fund .
5
Nonwithheld
6
Refunds
Corporation income taxes
7
Gross receipts
8
Refunds
9 Social insurance taxes and contributions
net
10
Employment taxes and
contributions
11
Self-employment taxes and
contributions
12
Unemployment insurance
13
Other net receipts
14
15
16
17

Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts

854,143

387,524

447,282

421,712

476,115

60,690

69,479

97,803

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

392,557
322,463
33
142,957
72,896

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

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

192,575
170,203
4
31,223
8,853

207,659
169,300
28
101,614
63,283

25,791
25,567
2
2,300
2,078

31,942
30,330

41,784
27,209

2,956
1,346

16,793
2,219

80,442
17,298

102,859
18,933

42,108
8,230

52,396
10,881

52,821
7,119

58,002
8,706

3,101
1,602

2,377
916

21,380
712

283,901

303,318

134,006

163,519

143,755

181,058

26,915

28,373

28,694

23,477

27,991

1

1

255,062

273,028'

122,246

146,696

130,388

164,412

24,964

11,840
24,098
4,742

13,987
25,575'
4,715

1,338
9,328
2,429

12,020
14,514
2,310

1,889
10,977
2,390

14,839
14,363
2,284

1,598
353

380
4,545
351

2,326
285
419

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

32,457'
15,085'
7,493
19,307

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

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

17,680
7,993
3,610
10,399

16,440
7,851
3,863
9,950

3,250
1,343
627
1,265

3,490
1,650
661
1,902

3,158
1,367
678
1,454

0

OUTLAYS

18 All types

990,231

1,004,586

506,556

503,267'

532,839

513,210

83,634

92,561

87,588

19
20
21
22
23
24

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

273,375
14,152
8,976
4,735
13,639
31,449

281,999
11,649
9,216
4,115
13,363
27,356

138,544
8,938
4,594
2,446
7,141
15,660

142,886
4,374
4,324
2,335
6,175
11,824

146,995
4,487
5,469
1,468
7,590
14,640

143,080
7,150
5,361
555
6,776
7,872

24,449
1,568
961
257
1,0%
311

24,532
833
930
282
1,213
-152

21,941
-691
702

25
26
27
28

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

4,890
28,117
7,233

6,182
26,228
5,051

3,764
14,745
3,651

4,893
12,113
3,108

3,852
14,096
2,075

5,951
12,700
2,765

-337
2,335
-109

4,077
2,6%
284

6,076
2,568
743

30,585

29,724

16,209

14,182

15,592

15,451

3,033

2,588

20,750
158,469
61,201

22,643
135,322
65,555

3,502
23,475
10,907

3,977
25,692
10,581

3,823
25,215
11,226

14,956
4,291
3,560
1,175
71,933
-17,684

13,241
4,761
4,337
448
76,098
-17,766

2,354
735
174

2,249
900
814

3,085
710
796

12,677
-2,706

13,661
-3,041

12,371
-4,892

29 Health
30 Social security and medicare
31 Income security

35,935
268,921
119,796

39,968
282,473
123,250

18,795
138,299
59,979

20,318
142,864
62,248

32
33
34
35
36
37

26,356
6,603
6,104
6,431
136,008
-33,007

26,782
7,548
5,948

14,190
3,413
1,860
2,886
66,226
-16,475

12,264
3,626
3,344
337
70,110
-19,102

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

1,621

138,570
-36,455

1. Functional details do not add to total outlays for calendar year data because
revisions to monthly totals have not been distributed among functions. Fiscal year
total for outlays does not correspond to calendar year data because revisions from
the Budget have not been fully distributed across months.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Federal employee retirement contributions and civil service retirement and
disability fund.




0

0

116

1,625
-414

0

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

A30

Domestic Financial Statistics • December 1988

1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1987

1986

1988

Item
June 30

Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

Dec. 31

Mar. 31

June 30

1 Federal debt outstanding

2,063.6

2,129.5

2,218.9

2,250.7

2,313.1

2,354.3

2,435.2

2,493.2

2,555.1

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

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

2,350.3
1,893.1
457.2

2,431.7
1,954.1
477.6

2,487.6
1,996.7
490.8

2,547.7
2,013.4
534.2

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
2.8
1.0

4.0
3.0
1.0

3.5
2.7
.8

5.6
5.1
.6

7.4
7.0
.5

5 Agency securities
6
Held by public
7
Held by agencies

2,060.0

2,111.0

2,200.5

2,232.4

2,295.0

2,336.0

2,417.4

2,472.6

2,532.2

9 Public debt securities
10 Other debt 1

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

2,334.7
1.3

2,416.3
1.1

2,472.1
.5

2,532.1
.1

11 MEMO: Statutory debt limit

2,078.7

2,111.0

2,300.0

2,300.0

2,320.0

2,800.0

2,800.0

2,800.0

2,800.0

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 Statement
United States.

of the Public Debt of the

Types and Ownership

Billions of dollars, end of period
1988

1987
Type and holder

1984

1986

1987

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 1
State and local government series
Foreign issues
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 5
Other miscellaneous investors

Q1

Q2

1,663.0

1,945.9

2,214.8

2,431.7

2,350.3

2,431.7

2,487.6

2,547.7

1,660.6
1,247.4
374.4
705.1
167.9
413.2
44.4
9.1
9.1
.0
73.1
286.2

1,943.4
1,437.7
399.9
812.5
211.1
505.7
87.5
7.5
7.5
.0
78.1
332.2

2,212.0

2,428.9
1,724.7
389.5
1,037.9
282.5
704.2
139.3
4.0
4.0

2,428.9
1,724.7
389.5
1,037.9
282.5
704.2
139.3
4.0
4.0

2,484.9
1,758.7
392.6
1,059.9
291.3
726.2
142.9

99.2
461.3

2,347.7
1.676.0
378.3
1.005.1
277.6
671.8
129.0
4.3
4.3
.0
97.0
440.7

.0

99.2
461.3

.0
102.3
474.4

2,545.0
1,769.9
382.3
1,072.7
299.9
775.1
146.9
5.7
5.7
.0
104.5
517.5

2.3

2.5

2.8

2.8

2.5

2.8

2.6

2.7

289.6
160.9
1,212.5
183.4
25.9
76.4
50.1
173.0

348.9
181.3
1,417.2
192.2
25.1
115.4
59.0
224.0

403.1
211.3
1,602.0
238.2
28.0
135.4
68.8

457.2
211.9
1,682.6
251.3
15.2
143.0

260.0

477.6
222.6
1,745.2
253.3
14.3
n.a.
84.6
n.a.

477.6
222.6
1,745.2
253.3
14.3
n.a.
84.6
n.a.

n.a.
n.a.
1,778.2
260.7
15.2
n.a.
n.a.
n.a.

n.a.
n.a.
1,784.9
263.0
13.4
n.a.
n.a.
n.a.

74.5
69.3
192.9
354.7

79.8
75.0
212.5
434.2

92.3
70.5
251.6
467.1

101.1

n.a.
287.3
n.a.

98.5
70.4
267.0
n.a.

101.1
n.a.
287.3
n.a.

104.0
n.a.
320.8
n.a.

n.a.
332.3
n.a.

1. Includes (not shown separately): Securities issued to the Rural Electrification Administration; depository bonds, retirement plan bonds, and individual
retirement bonds.
2. Nonmarketable dollar-denominated and foreign currency-denominated series held by foreigners.
3. Held almost entirely by U.S. Treasury agencies and trust funds.
4. Data for Federal Reserve Banks and U.S. Treasury agencies and trust funds
are actual holdings; data for other groups are Treasury estimates.




Q4

1,619.0
426.7
927.5
249.8
593.1
110.5
4.7
4.7
.0
90.6
386.9

.0

81.8

n.a.

6.1

6.1

106.2

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

A31

Transactions1

1.42 U.S. GOVERNMENT SECURITIES DEALERS
Par value; averages of daily figures, in millions of dollars

1988

1988
Item

1985

1986

1987
Jul/

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

Immediate delivery 2
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

Aug.'

Sept.

Aug. 24

Aug. 31'

Sept. 7

Sept. 14

Sept. 21

Sept. 28

75,331

95,445

110,052

92,162

100,203

99,308

82,200r

93,783

104,585

96,637

84,746

104,620

32,900
1,811
18,361
12,703
9,556

34,247
2,115
24,667
20,456
13,961

37,924
3,272
27,918
24,014
16,923

29,167
2,942
23,127
23,301
13,625

29,568
3,464
28,581
23,786
14,804

27,410
3,248
28,224
25,891
14,536

21,916r
2,662
25,419
19,252r
12,950

31,659
3,682
22,605
23,949
11,888

29,003
2,328
24,588
30,841
17,824

24,192
2,814
24,524
28,595
16,511

25,978
2,759
23,007
21,044
11,959

29,838
4,000
36,671
22,146
11,965

3,336

3,670

2,936

2,255

2,328

2,671

1,739

2,132

1,895

2,217

2,280

3,101

36,222
35,773
11,640
4,016
3,242
12,717

49,558
42,218
16,748
4,355
3,272
16,660

61,539
45,576
18,087
4,112
2,965
17,135

55,147
34,758
14,285
3,316
2,401
26,738

58,483
39,390
13,969
3,053
1,834
23,418

58,671
37,965
15,460
3,128
1,994
26,416

47,103'
33,356r
10,577'
3,019
1,669'
22,397

54,127
37,524
13,118
3,045
2,038
24,656

60,789
41,900
13,549
3,537
2,2%
24,940

58,313
36,107
14,218
2,850
1,923
26,989

50,749
31,716
16,172
2,984
1,795
27,773

62,049
39,468
14,875
3,028
1,938
25,571

5,561
6,085
252

3,311
7,175
16

3,233
8,964
5

1,886
8,524
0

2,593
9,485
0

2,555
9,393
0

1,384
7,765
0

2,479
7,675
0

3,533
10,690
0

2,914
9,868
0

1,879
8,292
0

2,179
8,020
0

1,283
3,857

1,876
7,831

2,029
9,290

1,670
7,088

2,283
8,701

1,478
7,599

3,741'
7,426

691
5,444

968
6,754

982
11,287

2,012
7,294

2,106
5,649

1. Transactions are market purchases and sales of securities as reported to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers.
Averages for transactions are based on the number of trading days in the period.
The figures exclude allotments of, and exchanges for, new U.S. Treasury
securities, redemptions of called or matured securities, purchases or sales of
securities under repurchase agreement, reverse repurchase (resale), or similar
contracts.
2. Data for immediate transactions do not include forward transactions.
3. Includes, among others, all other dealers and brokers in commodities and




securities, nondealer departments of commercial banks, foreign banking agencies,
and the Federal Reserve System.
4. Futures contracts are standardized agreements arranged on an organized
exchange in which parties commit to purchase or sell securities for delivery at a
future date.
5. Forward transactions are agreements arranged in the over-the-counter
market in which securities are purchased (sold) for delivery after 5 business days
from the date of the transaction for Treasury securities (Treasury bills, notes, and
bonds) or after 30 days for mortgage-backed agency issues.

A32

DomesticNonfinancialStatistics • December 1988

1.43 U.S. GOVERNMENT SECURITIES DEALERS

Positions and Financing1

Averages of daily figures, in millions of dollars
1988
Item

1985

1986

1988

1987
July

Aug/

Sept.

Aug. 31f

Sept. 7

Sept. 14

Sept. 21

Sept. 28

Positions

1

Net immediate 2
U.S. Treasury securities

7,391

12,912

-6,216

-31,320

-31,781

-26,763

-25,977

-24,643

-25,313

-27,689

-27,822

2
3
4
5
6

Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years

10,075
1,050
5,154
-6,202
-2,686

12,761
3,706
9,146
-9,505
-3,197

4,317
1,557
649
-6,564
-6,174

-90
-2,638
-4,887
-14,049
-9,655

1,658
-2,389
-6,234
-13,383
-11,432

6,815
-3,811
-2,8%
-13,753
-13,117

6,254
-3,202
-5,271
-12,008
-11,750

7,493
-3,431
-2,733
-13,414
-12,558

6,803
-3,251
-2,588
-13,436
-12,842

6,882
-4,141
-3,193
-13,831
-13,406

8,317
-3,943
-4,865
-14,139
-13,191

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

22,860
9,192
4,586
5,570

32,984
10,485
5,526
8,089

31,910
8,188
3,661
7,496

30,070r
8,832''
2,734
5,847

27,844
8,476
1,963
5,829

29,027
8,200
1,786
6,830

27,007
8,346
2,048
6,082

27,674
8,680
2,135
6,285

28,9%
8,199
1,829
6,348

29,979
7,916
1,438
7,195

28,894
8,191
1,798
7,001

-7,322
4,465
-722

-18,059
3,473
-153

-3,373
5,988
-95

904
7,454
0

1,157
8,476
0

-4,049
7,719
0

1,079
7,938
0

-1,927
8,100
0

-3,582
7,400
0

-5,976
7,785
0

-4,710
7,600
0

-911
-9,420

-2,144
-11,840

-1,211
-18,817

1,353
-18,780

641
-17,258

-347
-16,981

1,161
-15,737

994
-15,675

149
-17,357

-558
-18,030

-1,501
-16,553

11
12
13
14
15

Financing 3
Reverse repurchase agreements 4
Overnight and continuing
Term
Repurchase agreements
18 Overnight and continuing
19 Term

16
17

68,035
80,509

98,954
108,693

124,791
148,033

132,912
173,938

142,120
180,855

139,167
185,275

152,267
174,288

140,679
177,115

140,935
184,836

139,350
189,385

132,608
190,187

101,410
70,076

141,735
102,640

170,840
120,980

170,062
130,220

174,006
134,608

178,459
134,107

187,072
125,603

180,419
123,826

179,452
131,477

178,128
138,002

172,412
142,523

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
1988
1984

Agency

1985

1986

1987
Apr.

7
8
9

June

July

Aug.

271,220

Defense Department
Export-Import Bank 2,3
Federal Housing Administration
Government National Mortgage Association participation
certificates
Postal Service
Tennessee Valley Authority
United States Railway Association 6

10 Federally sponsored agencies 7
11
Federal Home Loan Banks
12 Federal Home Loan Mortgage Corporation
13 Federal National Mortgage Association
14 Farm Credit Banks 8
15 Student Loan Marketing Association 9
16 Financing Corporation 1 "
Farm Credit Financial Assistance Corporation"
17

293,905

307,361

341,386

348,273

352,216

354,446

n.a.

n.a.

35,145
142
15,882
133

36,390
71
15,678
115

36,958
33
14,211
138

37,981
13
11,978
183

36,672
11
11,494
103

36,430
11
11,494
105

36,361
11
11,232
116

36,465
11
11,232
116

n.a.
11
11,232
115

2,165
1,337
15,435
51

2,165
1,940
16,347
74

2,165
3,104
17,222
85

1,615
6,103
18,089
0

830
6,103
18,131
0

830
5,842
18,148
0

830
5,842
18,330
0

830
5,842
18,434
0

n.a.
5,842
18,494
0

237,012
65,085
10,270
83,720
72,192
5,745
n.a.
n.a.

257,515
74,447
11,926
93,896
68,851
8,395
n.a.
n.a.

270,553
88,752
13,589
93,563
62,478
12,171
n.a.
n.a.

303,405
115,725
17,645
97,057
55,275
16,503
1,200
n.a.

311,601
118,153
17,199
100,911
54,311
18,877
2,150
n.a.

315,786
117,864
19,495
102,515
54,578
18,434
2,900
n.a.

318,085
117,773
17,619
104,757
55,779
19,257
2,900
n.a.

n.a.
119,409
n.a.
104,751
54,538
19,453
2,900
450

n.a.
121,266
n.a.
105,730
53,538
19,680
3,750
450

145,217

1 Federal and federally sponsored agencies
2
3
4
5
6

May

153,373

157,510

152,417

150,044

149,986

149,833

149,937

149,809

15,852
1,087
5,000
13,710
51

15,670
1,690
5,000
14,622
74

14,205
2,854
4,970
15,797
85

11,972
5,853
4,940
16,709
0

11,488
5,853
4,940
16,751
0

11,488
5,592
4,940
16,768
0

11,226
5,592
4,940
16,950
0

11,226
5,592
4,940
17,054
0

11,226
5,592
4,940
17,114
0

58,971
20,693
29,853

64,234
20,654
31,429

65,374
21,680
32,545

59,674
21,191
32,078

59,674
19,203
32,135

59,674
19,218
32,306

59,674
19,204
32,247

59,674
19,206
32,245

59,464
19,225
32,248

MEMO

18 Federal Financing Bank debt
19
70
71
22
23

Lending to federal and federally sponsored
Export-Import Bank
Postal Service 6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association 6

Other Lending13
7,4 Farmers Home Administration
75 Rural Electrification Administration
26

agencies

1. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1,1976.
3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
5. Certificates of participation issued before fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing
and Urban Development; Small Business Administration; and the Veterans
Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Some data are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation,
shown in line 17.




9. Before late 1981, the Association obtained financing through the Federal
Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is
shown on line 21.
10. The Financing Corporation, established in August 1987 to recapitalize the
Federal Savings and Loan Insurance Corporation, undertook its first borrowing in
October 1987.
11. The Farm Credit Financial Assistance Corporation (established in January
1988 to provide assistance to the Farm Credit System) undertook its first
borrowing in July 1988.
12. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since FFB
incurs debt solely for the purpose of lending to other agencies, its debt is not
included in the main portion of the table in order to avoid double counting.
13. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any
particular agency being generally small. The Farmers Home Administration item
consists exclusively of agency assets, while the Rural Electrification Administration entry contains both agency assets and guaranteed loans.

A34

DomesticNonfinancialStatistics • December 1988

1.45 NEW SECURITY ISSUES

Tax-Exempt State and Local Governments

Millions of dollars

Type of issue or issuer,
or use

1985

1986

1987
Feb.

Apr.

May

June

July

Aug/

Sept.

1 All issues, new and refunding1

214,189

147,011

102,407

8,585

9,821

5,847

7,846

13,912

9,746

6,966

9,243

Type of issue
2 General obligation
3 Revenue

52,622
161,567

46,346
100,664

30,589
71,818

2,880
5,705

2,776
7,045

1,707
4,140

3,085
4,761

4,237
9,675

1,959
7,788

2,472
4,494

2,286
6,957

Type of issuer
4 State
5 Special district and statutory authority
6 Municipalities, counties, and townships

13,004
134,363
78,754

14,474
89,997
42,541

10,102
65,460
26,845

1,197
5,154
2,234

739
6,310
2,772

441
4,078
1,328

913
4,625
2,308

1,349
8,629
3,934

140
6,752
2,854

576
3,749
2,641

6,110
1,927

7 Issues for new capital, total

156,050

83,490

56,789

2,738

2,401

1,476

2,334

2,352

2,079

2,318

2,783

Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes

16,658
12,070
26,852
63,181
12,892
24,398

12,307
7,246
14,594
11,353
6,190
31,802

9,524
3,677
7,912
11,106
7,474

754
826
655
650
2,473
415

933
559
1,016

911
215
429
1,099
298
996

1,316
452
580
694
248
1,900

1,320
858
635
2,060
434
3,628

1,699
1,446
225

694
265
613
1,242
460
2,043

1,174
683
514
2,358
351
1,891

8
9
10
11
12
13

1. Par amounts of long-term issues based on date of sale.
2. Includes school districts beginning 1986.

1.46 NEW SECURITY ISSUES

18,020

1,218

105
2,213

1,222

128
3,666

1,206

SOURCES. Securities Data/Bond Buyer Municipal Data Base beginning 1986.
Public Securities Association for earlier data.

U.S. Corporations

Millions of dollars
1988

Type of issue or issuer,
or use

1987
Feb.

Apr.

May

July

Aug.

1 All issues'

239,015

423,726

392,156

22,175

22,439

25,902

21,227

23,413

30,043'

17,982'

18,661

2 Bonds2

203,500

355,293

325,648

19,485

18,549

20,815

18,515

19,382

25,748'

12,844'

15,339

Type of offering
3 Public, domestic
4 Private placement, domestic 3 .
5. Sold abroad

119,559
46,200
37,781

231,936
80,760
42,5%

209,279
92,070
24,299

18,246
n.a.
1,239

16,758
n.a.
1,791

19,827
n.a.

16,202

17,4%
n.a.

22,753'
n.a.
2,995

10,850'
n.a.
1,994

14,000
n.a.
1,339

63,973
17,066

61,666
49,327
11,974
23,004
7,340
172,343

3,053
2,084

3,482
1,007
1,017
2,259
115
12,935

4,513
771
890
1,170
411
10,760

4,206
1,446
184
1,929
69
11,546

580
1,707
925'
14,949'

2,204'
1,531'
100
54C
577'
7,893'

3,500
2,202

1,142
206
13,000

3,151
1,416
200
1,718
101
11,962

5,305'

13,649
10,832
91,958

91,548
40,124
9,971
31,426
16,659
165,564

298
29
9,310

12 Stocks 3

35,515

68,433

66,508

2,690

3,890

5,087

2,712

4,031

4,295

5,138

3,322

Type
13 Preferred
14 Common
15 Private placement 3

6,505
29,010

11,514
50,316
6,603

10,123
43,228
13,157

1,388
1,302
n.a.

376
3,513
n.a.

625
4,462
n.a.

241
2,471
n.a.

285
3,746
n.a.

501
3,794
n.a.

407
4,731
n.a.

495
2,827
n.a.

5,700
9,149
1,544
1,966
978
16,178

15,027
10,617
2,427
4,020
1,825
34,517

13,880
12,888

268
360

2,439
4,322
1,458
31,521

256
99
32
93
63
4,544

318
276
150
238
109
1,621

1,080
157
15
59
78
2,642

1,676
522
51
207
13
1,826

2%
2,073

100
60
1,901

2%
44
474
142

538
336
72
135
3
2,238

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

6,020

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.




0

1

0

2,933

n.a.
2,313

1,886

2,281'

0

20
20
2,729

0

2. Monthly data include only public offerings.
3. Data are not available on a monthly basis. Before 1987, annual totals include
underwritten issues only.
SOURCES. IDD Information Services, Inc., U.S. Securities and Exchange
Commission and the Board of Governors of the Federal Reserve System.

Securities Market and Corporate Finance
1.47 OPEN-END INVESTMENT COMPANIES

A35

Net Sales and Asset Position

Millions of dollars
1988
Item

1986

1987
Jan.

Feb.

Mar.

May

Apr.

June

July r

Aug.

INVESTMENT COMPANIES1

1 Sales of own shares2

411,751

381,260

30,343

23,265

24,589

23,162

19,579

22,503

20,728

20,595

2 Redemptions of own shares 3
3 Net sales

239,394
172,357

314,252
67,008

22,324
8,019

20,914
2,351

23,968
620

25,000
-1,828

21,412
-1,833

23,168
-665

20,561
167

22,836
-2,241

4 Assets4

424,156

453,842

468,998

481,232

473,206

473,321

468,735

481,120

477,076

465,826

5 Cash position 5
6 Other

30,716
393,440

38,006
415,836

40,157
428,841

41,232
439,995

43,561
426,645

45,307
428,014

45,003
423,732

43,229
437,891

44,015
433,061

45,230
420,5%

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.

5. Also includes all U.S. government securities and other short-term debt
securities.
NOTE. Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the
Securities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.

1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1986
Account

1985

1986

1987

1988

1987
Q3

Q4

Q1

Q2

Q3

Q4

Q1

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

282.3
224.2
%.4
127.8
83.2
44.5

298.8
236.3
106.6
129.8
88.2
41.5

310.4
276.7
133.8
142.9
95.5
47.4

301.2
240.5
107.9
132.6
88.9
43.7

293.9
252.1
114.3
137.9
89.8
48.1

298.3
261.8
126.3
135.5
91.7
43.8

305.2
273.7
132.6
141.1
94.0
47.0

322.0
289.4
140.0
149.5
97.0
52.4

316.1
281.9
136.2
145.7
99.3
46.4

316.2
286.2
136.9
149.4
101.3
48.1

326.5
305.9
143.2
162.7
103.1
59.6

7 Inventory valuation
8 Capital consumption adjustment

-1.7
59.8

8.3
54.1

-18.0
51.7

8.7
52.0

-8.1
49.8

-14.4
50.8

-20.0
51.5

-19.5
52.1

-18.2
52.4

-19.4
49.4

-27.4
48.0

SOURCE. Survey of Current Business (Department of Commerce).




A36

DomesticNonfinancialStatistics • December 1988

1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment •
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1987
Industry

1986

1987

1988

19881

Ql
1 Total nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5
Railroad
6
Air
Other
7
Public utilities
8
Electric
Gas and other
9
10 Commercial and o t h e r

Q3

Q4

Ql

Q2

Q31

Q4 1

379.47

389.67

430.95

376.73

380.66

394.54

406.82

412.02

426.94

440.42

444.40

69.14
73.56

71.01
74.88

78.06
85.50

70.79
70.70

69.05
72.66

71.96
76.24

72.28
79.92

75.70
82.90

76.87
84.82

80.59
85.78

79.09
88.48

11.22

11.39

12.62

10.38

11.02

11.81

12.32

12.59

13.26

12.74

11.89

6.66
6.26
5.89

5.92
6.53
6.40

7.05
7.61
6.91

5.68
7.01
6.08

5.84
6.02
6.26

6.07
6.15
6.97

6.12
6.94
6.28

6.92
6.43
7.08

7.01
6.66
7.05

7.07
9.31
7.06

7.19
8.02
6.44

33.91
12.47
160.38

31.63
13.25
168.65

32.20
14.27
186.74

31.23
12.72
162.13

31.47
12.47
165.86

31.57
13.73
170.05

32.28
14.11
176.56

30.31
14.30
175.79

30.95
14.48
185.83

33.79
14.26
189.82

33.76
14.04
195.50

• T r a d e 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

A37

Assets and Liabilities1

1.51 DOMESTIC FINANCE COMPANIES
Billions of dollars, end of period

1986
Account

1983

1984

1987

1985
Q2

Q3

Q4

Qi

Q2

Q3

Q4

ASSETS

Accounts receivable, gross
Consumer
Business
Real estate
Total

83.3
113.4
20.5
217.3

89.9
137.8
23.8
251.5

111.9
157.5
28.0
297.4

123.4
166.8
29.8
320.0

135.3
159.7
31.0
326.0

134.7
173.4
32.6
340.6

131.1
181.4
34.7
347.2

134.7
188.1
36.5
359.3

141.6
188.3
38.0
367.9

141.1
207.6
39.5
388.2

Less:
5 Reserves for unearned income
6 Reserves for losses

30.3
3.7

33.8
4.2

39.2
4.9

40.7
5.1

42.4
5.4

41.5
5.8

40.4
5.9

41.2
6.2

42.5
6.5

45.3
6.8

7 Accounts receivable, net
8 All other

183.2
34.4

213.5
35.7

253.3
45.3

274.2
49.5

278.2
60.0

293.3
58.6

300.9
59.0

311.9
57.7

318.9
64.5

336.1
58.2

9 Total assets

217.6

249.2

298.6

323.7

338.2

351.9

359.9

369.6

383.4

394.3

18.3
60.5

20.0
73.1

18.0
99.2

16.3
108.4

16.8
112.8

18.6
117.8

17.2
119.1

17.3
120.4

15.9
124.2

16.4
128.4

11.1
67.7
31.2
28.9

12.9
77.2
34.5
31.5

12.7
94.4
41.5
32.8

15.8
106.9
40.9
35.4

16.4
111.7
45.0
35.6

17.5
117.5
44.1
36.4

21.8
118.7
46.5
36.6

24.8
121.8
49.1
36.3

26.9
128.2
48.6
39.5

28.0
137.1
52.8
31.5

217.6

249.2

298.6

323.7

338.2

351.9

359.9

369.6

383.4

394.3

1
2
3
4

LIABILITIES

10 Bank loans
11 Commercial paper
Debt
12 Other short-term
13 Long-term
14 All other liabilities
IS Capital, surplus, and undivided profits
16 Total liabilities and capital

1. NOTE. Components may not add to totals because of rounding.

1.52 DOMESTIC FINANCE COMPANIES

Business Credit Outstanding and Net Change1

Millions of dollars, seasonally adjusted
1988
Type
Mar.
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

Apr.

May

June

July

Aug.

156,297

171,966

205,869

216,007

218,914

220,304

222,133

223,706

223,975

20,660
22,483

25,952
22,950

35,674
24,987

36,914
27,081

37,619
27,263

37,219
27,081

37,519
27,548

37,682
27,428

37,519
27,603

23,988
4,568
6,809

23,419
5,423
7,079

31,059
5,693
8,408

27,329
5,251
8,347

27,361
5,429
8,311

28,260
5,237
8,414

28,731
5,557
8,481

28,449
5,654
8,458

27,721
5,803
8,531

16,275
34,768

19,783
37,833

21,943
43,002

23,493
50,411

23,458
51,092

23,690
52,126

24,076
52,365

24,400
52,803

24,370
53,671

15,765
10,981

15,959
13,568

18,024
17,079

17,895
19,287

18,789
19,592

18,700
19,578

18,595
19,260

19,095
19,736

19,132
19,609

Net change (during period)
19,607

11
12
13
14
15
16
17
18
19
20

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

15,669

3,040

2,670

2,907

1,390

1,829

1,573

269

5,067
-363

5,292
467

1,220
223

5%
105

705
182

-400
-181

300
467

163
-120

-163
175

5,423
-867
1,069

-569
855
270

158
-101
257

-1,325
-72
16

32
178
-36

899
-192
103

471
320
67

-282
97
-23

-728
149
73

3,896
2,685

3,508
3,065

-70
1,038

393
2,236

-34
681

231
1,034

386
239

324
438

-30
867

2,161
536

194
2,587

-477
792

-643
689

894
305

-88
-14

-105
-318

500
476

37
-127

1. These data also appear in the Board's G.20 (422) release. For address, see
inside front cover.




A38
1.53

Domestic Financial Statistics • December 1988
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1988
Mar.

Apr.

May

June

July

Aug.

Sept.

Terms and yields in primary and secondary markets
PRIMARY MARKETS

1
2
3
4
5
6

Conventional mortgages on new homes
Terms1
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan/price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)
Contract rate (percent per year)

118.1
86.2
75.2
26.6
2.48
9.82

137.0
100.5
75.2
27.8
2.26
8.94

147.2
106.3
75.0
27.3
2.28
8.77

151.4
112.1
76.2
27.7
2.20
8.76

145.3
108.0
76.4
28.1
2.15
8.59

152.0
110.2
73.8
27.5
2.16
8.90

152.9
111.9
75.2
28.4
2.24
8.80

154.2''
114.9'
76.7'
28.5'
2.35'
8.68

145.3
108.6
75.9
27.8
2.16
8.90

11.58
12.28

Yield (percent per year)
7 FHLBB series 3
8 HUD series 4

104.1
77.4
77.1
26.9
2.53
11.12

10.25
10.07

9.31
10.13

9.15
9.99

9.13
10.19

8.95
10.48

9.26
10.35

9.17
n.a.

9.06'
n.a.

9.25
n.a.

12.24
11.61

9.91
9.30

10.12
9.42

10.28
9.53

10.46
9.67

10.84
9.93

10.65
9.88

n.a.
9.91

n.a.
10.09

n.a.
9.93

SECONDARY MARKETS

Yield (percent per year)
9 FHA mortgages (HUD series)
10 GNMA securities 6

Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION

Mortgage holdings (end of period)
11 Total
12 FHA/VA-insured
13 Conventional

94,574
34,244
60,331

98,048
29,683
68,365

95,030
21,660
73,370

99,787
20,094
79,693

100,796
19,932
80,864

101,747
19,805
81,941

102,368
19,765
82,603

102,540
19,677
82,864

102,540
19,586
82,954

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

Mortgage transactions (during period)
14 Purchases

21,510

30,826

20,531

2,776

2,409

2,138

2,372

1,960

1,638

n.a.

Mortgage commitments7
15 Contracted (during period)
16 Outstanding (end of period)

20,155
3,402

32,987
3,386

25,415
4,886

3,823
6,149

2,555
6,033

2,142
5,777

2,179
5,365

1,108
4,277

1,041
3,135

n.a.
n.a.

Mortgage holdings (end of periodf
17 Total
18 FHA/VA
19 Conventional

12,399
841
11,559

13,517
746
12,771

12,802
686
12,116

14,386
641
13,745

14,822
635
14,187

15,228
633
14,595

15,576
627
14,949

15,133
619
14,514

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

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

Mortgage transactions (during period)
20 Purchases
21 Sales

44,012
38,905

103,474
100,236

76,845
75,082

2,932
2,312

2,772
2,271

2,877
2,325

4,117
3,649

3,879
4,115

n.a.
n.a.

n.a.
n.a.

48,989

110,855

71,467

4,262

6,437

5,159

6,447

5,328

n.a.

n.a.

FEDERAL HOME L O A N MORTGAGE CORPORATION

9

Mortgage
commitments
22 Contracted (during period)

1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; compiled by the Federal Home Loan Bank
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "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.




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
1988

1987
Type of holder, and type of property

1985

1986

1987
Q2

1 All holders

2,289,843

2,597,175

2,943,176

Q3

Q4

Q1

Q2

2,792,723

2,864,736

2,943,176

2,987,155

3,056,615
2,006,675
282,920
679,305
87,715

1,488,009
214,470
481,514
105,850

1,698,524
247,831
555,039
95,781

1,925,203
273,836
655,269
88,868

1,817,482
263,874
620,087
91,280

1,870,635
268,911
635,230
89,960

1,925,203
273,836
655,269
88,868

1,955,325
277,571
666,0%
88,163

1,390,394
429,196
213,434
23,373
181,032
11,357

1,507,289
502,534
235,814
31,173
222,799
12,748

1,700,820
591,151
275,761
33,296
267,663
14,431

1,607,000
544,759
252,813
30,543
247,576
13,827

1,648,328
567,000
263,762
32,114
256,981
14,143

1,700,820
591,151
275,761
33,2%
267,663
14,431

1,722,742
603,408
279,977
33,585
275,081
14,765

1,760,744
622,237
289,029
34,347
283,678
15,183

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
193,842
12,827
20,952
149,111
10,952
33,601

856,945
598,886
106,359
150,943
n.a.
212,375
13,226
22,524
166,722
9,903
40,349

824,961
572,075
102,933
149,183
n.a.
200,382
12,745
21,663
155,611
10,363
36,898

838,737
583,432
104,609
149,938
n.a.
204,263
12,742
21,968
159,464
10,089
38,328

856,945
598,886
106,359
150,943
n.a.
212,375
13,226
22,524
166,722
9,903
40,349

863,110
603,532
107,687
151,136
n.a.
214,815
13,653
22,723
168,774
9,665
41,409

876,974
615,771
109,588
150,863
n.a.
219,015
14,053
22,823
172,624
9,515
42,518

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

192,721
444
25
419
43,051
18,169
8,044
6,603
10,235

196,514
667
45
622
48,085
21,157
7,808
8,553
10,567

191,520
458
25
433
42,978
18,111
7,903
6,592
10,372

192,721
444
25
419
43,051
18,169
8,044
6,603
10,235

1%,909
434
25
409
43,076
18,185
8,115
6,640
10,136

199,728
425
24
401
42,767
18,248
8,213
6,288
10,018

Federal Housing and Veterans Administration
I- 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

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

5,574
2,557
3,017
96,649
89,666
6,983
34,131
2,008
32,123
12,872
11,430
1,442

5,268
2,531
2,737
94,064
87,013
7,051
35,833
2,108
33,725
12,597
11,172
1,425

5,330
2,452
2,878
94,884
87,901
6,983
34,930
2,055
32,875
12,940
11,570
1,370

5,574
2,557
3,017
96,649
89,666
6,983
34,131
2,008
32,123
12,872
11,430
1,442

5,660
2,608
3,052
99,787
92,828
6,959
33,566
1,975
31,591
14,386
12,749
1,637

5,544
2,452
3,092
102,368
95,404
6,964
33,048
1,945
31,103
15,576
13,631
1,945

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
52
1- to 4-family
53
Multifamily
54
Farmers Home Administration
55
1- to 4-family
56
Multifamily
57
Commercial
58
Farm

439,058
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

565,428
262,697
256,920
5,777
171,372
166,667
4,705
97,174
95,791
1,383
348
142

718,297
317,555
309,806
7,749
212,634
205,977
6,657
139,960
137,988
1,972
245
121

656,361
293,246
286,091
7,155
200,284
194,238
6,046
121,270
119,617
1,653
342
149

692,944
308,339
300,815
7,524
208,872
202,308
6,564
130,540
128,770
1,770
333
144

718,297
317,555
309,806
7,749
212,634
205,977
6,657
139,960
137,988
1,972
245
121

736,344
322,976
315,095
7,881
214,724
208,138
6,586
145,242
142,330
2,912
172
65

761,405
329,976
321,924
8,052
216,155
209,702
6,453
157,438
153,253
4,185
106
23

132
74

63
61

126
67

124
65

63
61

58
49

41
42

59 Individuals and others 7
60
1- to 4-family
61
Multifamily
62
Commercial
63
Farm

293,463
162,419
55,849
48,692
26,503

320,658
177,374
66,940
53,315
23,029

331,338
171,331
75,374
63,275
21,358

332,848
177,611
74,238
59,038
21,961

331,944
173,360
74,795
62,131
21,658

331,338
171,331
75,374
63,275
21,358

331,160
169,526
76,025
64,407
21,202

334,738
170,968
76,857
65,811
21,102

2
3
4
5

1- to 4-faraily
Multifamily
Commercial
Farm

6 Selected financial institutions
Commercial banks 2
7
8
1- to 4-family
9
Multifamily
10
Commercial
11
Farm
12
13
14
15
16
17
18
19
20
21
22

Savings institutions 3
1- to 4-family
Multifamily
Commercial
Farm
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
Finance companies

23 Federal and related agencies
24
Government National Mortgage Association..
25
1- to 4-family
26
Multifamily
27
Farmers Home Administration
28
1- to 4-family
29
Multifamily
30
Commercial
31
Farm
32
33
34
35
36
37
38
39
40
41
42
43

1. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve. Multifamily debt refers
to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not bank trust
departments.
3. Includes savings banks and savings and loan associations. Beginning 1987:1,
data reported by FSLIC-insured institutions include loans in process and other
contra assets (credit balance accounts that must be subtracted from the corresponding gross asset categories to yield net asset levels).




4. Assumed to be entirely 1- to 4-family loans.
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 1988

1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change, seasonally adjusted
Millions of dollars
1987
Holder, and type of credit

1988

1987
Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July'

Aug.

Amounts outstanding (end of period)
1 Total

571,833

613,022

613,022

619,258

624,294

629,485

633,336

636,318

644,372

647,993

653,431

By major holder
Commercial banks
Finance companies
Credit unions
Retailers 3
Savings institutions
Gasoline companies

262,139
133,698
76,191
39,660
56,881
3,264

281,564
140,072
81,065
42,782
63,949
3,590

281,564
140,072
81,065
42,782
63,949
3,590

284,753
141,695
81,662
42,926
64,633
3,590

287,344
142,946
81,897
43,080
65,3%
3,631

290,831
144,053
82,595
43,271
65,078
3,657

293,166
144,516
83,204
43,295
65,387
3,769

295,546
144,454
83,881
43,162
65,509
3,765

300,275
144,748
84,912
43,450
67,274
3,713

303,189
143,812
85,468
43,634
68,182
3,707

307,232
143,962
85,881
43,712
68,909
3,735

By major type of credit
8 Automobile
9
Commercial banks
10 Credit unions
11 Finance companies
12 Savings institutions

246,109
100,907
38,413
92,350
14,439

267,180
108,438
43,474
98,026
17,242

267,180
108,438
43,474
98,026
17,242

269,883
109,298
43,959
99,147
17,479

273,133
111,021
44,251
100,123
17,738

276,762
113,593
44,795
100,669
17,705

278,567
114,868
45,293
100,564
17,841

279,418
115,951
45,831
99,708
17,928

282,254
117,322
46,565
99,900
18,465

283,359
118,650
47,043
98,8%
18,770

285,645
120,465
47,444
98,711
19,026

13 Revolving
14 Commercial banks
13 Retailers
16 Gasoline companies
17
Savings institutions
18 Credit unions

136,381
86,757
34,320
3,264
8,366
3,674

159,307
98,808
36,959
3,590
13,279
6,671

159,307
98,808
36,959
3,590
13,279
6,671

162,065
100,879
37,087
3,590
13,601
6,908

163,462
101,537
37,231
3,631
13,945
7,117

165,643
103,152
37,408
3,657
14,059
7,368

167,356
104,250
37,414
3,769
14,309
7,614

169,154
105,742
37,259
3,765
14,518
7,870

172,809
108,309
37,526
3,713
15,098
8,162

174,927
109,645
37,671
3,707
15,492
8,413

177,552
111,607
37,708
3,735
15,850
8,652

19 Mobile home
20
Commercial banks
21
Finance companies
22
Savings institutions

26,883
8,926
8,822
9,135

25,957
9,101
7,771
9,085

25,957
9,101
7,771
9,085

25,926
9,064
7,753
9,109

25,857
9,035
7,679
9,143

25,732
8,993
7,640
9,099

25,764
9,047
7,575
9,142

25,703
8,966
7,578
9,159

25,852
8,933
7,513
9,406

25,882
8,913
7,436
9,533

25,912
8,890
7,387
9,634

23 Other
24
Commercial banks
25
Finance companies
26
Credit unions
27
Retailers
28
Savings institutions

162,460
65,549
32,526
34,104
5,340
24,941

160,578
65,217
34,275
30,920
5,823
24,343

160,578
65,217
34,275
30,920
5,823
24,343

161,384
65,512
34,795
30,795
5,839
24,444

161,842
65,750
35,144
30,529
5,849
24,570

161,348
65,094
35,744
30,432
5,863
24,216

161,649
65,001
36,376
30,297
5,880
24,095

162,043
64,887
37,168
30,180
5,903
23,904

163,456
65,710
37,335
30,184
5,923
24,305

163,825
65,981
37,480
30,012
5,964
24,388

164,322
66,270
37,863
29,785
6,004
24,399

2
i
4
5
6
7

Net change (during period)
54,078

41,189

4,294

6,236

5,036

5,191

3,851

2,982

8,054

3,621

5,438

By major holder
Commercial banks
Finance companies
Credit unions
Retailers 3
Savings institutions
Gasoline companies

20,495
22,670
4,268
466
7,223
-1,044

19,425
6,374
4,874
3,122
7,068
326

2,014
1,144
142
491
537
-34

3,189
1,623
597
144
684
0

2,591
1,251
235
154
763
41

3,487
1,107
698
191
-318
26

2,335
463
609
24
309
112

2,380
-62
677
-133
122
-4

4,729
294
1,031
288
1,765
-52

2,914
-936
556
184
908
-6

4,043
150
413
78
727
28

By major type of credit
36 Automobile
37
Commercial banks
38
Credit unions
39
Finance companies
40
Savings institutions

36,473
8,178
2,388
22,823
3,084

21,071
7,531
5,061
5,676
2,803

2,706
711
403
1,293
299

2,703
860
485
1,121
237

3,250
1,723
292
976
259

3,629
2,572
544
546
-33

1,805
1,275
498
-105
136

851
1,083
538
-856
87

2,836
1,371
734
192
537

1,105
1,328
478
-1,004
305

2,286
1,815
401
-185
256

41 Revolving
42
Commercial banks
43
Retailers
44
Gasoline companies
45
Savings institutions
46
Credit unions

14,368
11,150
47
-1,044
2,078
2,137

22,926
12,051
2,639
326
4,913
2,997

2,882
1,430
458
-34
643
385

2,758
2,071
128
0
322
237

1,397
658
144
41
344
209

2,181
1,615
177
26
114
251

1,713
1,098
6
112
250
246

1,798
1,492
-155
-4
209
256

3,655
2,567
267
-52
580
292

2,118
1,336
145
-6
394
251

2,625
1,962
37
28
358
239

47 Mobile home
48
Commercial banks
49
Finance companies
50
Savings institutions

49
-627
-472
1,148

-926
175
-1,051
-50

-647
-68
-440
-139

-31
-37
-18
24

-69
-29
-74
34

-125
-42
-39
-44

32
54
-65
43

-61
-81
3
17

149
-33
-65
247

30
-20
-77
127

30
-23
-49
101

51 Other
52
Commercial banks
53
Finance companies
54
Credit unions
55
Retailers
56
Savings institutions

3,188
1.794
319
-257
419
913

-1,882
-332
1,749
-3,184
483
-598

-647
-59
291
-646
33
-266

806
295
520
-125
16
101

458
238
349
-266
10
126

-494
-656
600
-97
14
-354

301
-93
632
-135
17
-121

394
-114
792
-117
23
-191

1,413
823
167
4
20
401

369
271
145
-172
41
83

497
289
383
-227
40
11

29 Total
30
31
32
33
34
35

1. The Board's series cover most short- and intermediate-term credit extended
to individuals that is scheduled to be repaid (or has the option of repayment) in
two or more installments.
These data also appear in the Board's G.19 (421) release. For address, see
inside front cover.




2. More detail for finance companies is available in the G. 20 statistical release.
3. Excludes 30-day charge credit held by travel and entertainment companies.

Consumer Installment Credit

A41

1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1
Percent unless noted otherwise
1988r
Item

1985

1986

1987
Feb.

Mar.

Apr.

May

June

July

Aug.

INTEREST RATES

1
2
3
4
S

6

Commercial banks 2
48-month new car 3
24-month personal
120-month mobile home 3
Credit card
Auto finance companies
New car
Used car

12.91
15.94
14.%
18.69

11.33
14.82
13.99
18.26

10.45
14.22
13.38
17.92

10.72
14.46
13.45
17.80

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

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

10.55
14.40
13.49
17.78

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

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

10.93
14.81
13.62
17.79

11.98
17.59

9.44
15.95

10.73
14.60

12.26
14.75

12.24
14.77

12.29
14.82

12.29
14.81

12.32
14.83

12.44
14.99

12.64
15.16

51.5
41.4

50.0
42.6

53.5
45.2

55.9
46.8

56.0
46.9

56.2
46.9

56.2
46.9

56.3
46.9

56.4
46.8

56.5
46.8

91
94

91
97

93
98

94
99

94
98

94
98

94
99

94
99

94
99

94
98

9,915
6,089

10,665
6,555

11,203
7,420

11,447
7,619

11,493
7,587

11,553
7,662

11,624
7,778

11,626
7,899

11,663
7,947

11,593
7,918

OTHER TERMS 4

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. These data also appear in the Board's G.19 (421) release. For address, see
inside front cover.
2. Data for midmonth of quarter only.




3. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
4. At auto finance companies.

A42
1.57

DomesticNonfinancialStatistics • December 1988
F U N D S R A I S E D IN U . S . CREDIT M A R K E T S
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1985
Transaction category, sector

1983

1984

1986

1985

1988

1987

1986

1987
H2

HI

HI

H2

HI

H2

HI

Nonfinancial sectors
546.8

750.8

846.3

830.6

680.6

724.8

967.7

686.7

974.4

651.8

709.3

695.3

Treasury securities
Agency issues and mortgages

186.6
186.7
-.1

198.8
199.0
-.2

223.6
223.7
-.1

215.0
214.7
.4

143.8
142.3
1.5

205.6
205.7
-.1

241.7
241.7
-.1

207.7
207.8
-.1

222.3
221.5
.9

153.4
152.4
1.0

134.3
132.2
2.0

156.9
153.3
3.6

5 Private domestic nonfinancial sectors
Debt capital instruments
6
Tax-exempt obligations
7
8
9
Mortgages
10
Home mortgages
Multifamily residential
11
17
Farm
13

360.2
257.6
53.7
16.0
187.9
120.4
14.1
51.0
2.4

552.0
319.3
50.4
46.1
222.8
136.7
25.2
62.2
-1.2

622.7
452.3
136.4
73.8
242.2
156.8
29.8
62.2
-6.6

615.6
460.7
30.8
121.3
308.6
210.9
33.5
73.6
-9.5

536.7
446.0
34.5
99.9
311.5
221.6
24.3
72.0
-6.4

519.3
362.9
67.8
70.5
224.5
143.6
25.5
58.5
-3.0

726.1
541.8
204.9
77.0
259.9
169.9
34.1
65.9
-10.1

479.0
381.9
-14.5
144.8
251.6
171.6
31.8
58.1
-10.0

752.1
539.4
76.1
97.7
365.6
250.3
35.2
89.2
-9.0

498.4
470.0
35.9
108.7
325.4
233.8
29.2
71.9
-9.5

575.0
422.0
33.1
91.2
297.7
209.4
19.5
72.2
-3.3

538.4
391.0
32.7
109.4
248.9
184.7
20.0
48.2
-3.9

102.6
49.0
23.2
— .8
31.3

232.7
81.6
67.1
21.7
62.2

170.3
82.5
38.6
14.6
34.6

154.9
54.4
69.3
-9.3
40.5

90.7
40.7
8.8
2.3
38.9

156.4
85.2
19.0
12.9
39.3

184.3
79.8
58.3
16.3
29.9

97.1
57.7
15.6
-15.1
39.0

212.7
51.1
123.1
-3.6
42.0

28.4
26.1
-35.6
2.1
35.8

153.1
55.4
53.2
2.4
42.1

147.3
41.9
58.8
.1
46.6

360.2
34.0
186.1
3.9
81.9
54.4

552.0
27.4
231.5
-.4
123.2
170.3

622.7
91.8
283.6
-14.5
129.3
132.4

615.6 536.7
34.4
44.3
286.1 261.4
-16.3 -11.2
112.6 103.2
188.8 148.8

519.3
57.2
251.6
-7.6
129.5
88.6

726.1
126.4
315.6
-21.4
129.1
176.3

479.0
5.5
238.0
-17.9
109.0
144.4

752.1
83.2
334.2
-14.6
116.1
233.2

498.4
34.2
250.0
-18.1
95.9
136.5

575.0
34.7
272.9
-4.3
110.6
161.2

538.4
29.5
237.5
-11.1
112.1
170.4

17.3
3.1
3.6
6.5
4.1

8.4
3.8
-6.6
6.2
5.0

1.2
3.8
-2.8
6.2
-5.9

9.6
3.0
-1.0
11.5
-3.9

4.3
6.8
-3.6
2.1
-1.0

-5.8
5.4
-5.7
2.7
-8.3

8.2
2.2
9.7
-3.6

22.3
6.6
1.7
19.0
-5.1

-3.1
-.6
-3.8
3.9
-2.7

-4.4
-.5
-2.3
-5.3
3.8

13.1
14.2
-4.9
9.5
-5.7

0.5
7.0
-2.7
3.9
-7.6

564.1

759.2

847.5

840.2

684.9

719.0

975.9

709.0

971.3

647.4

722.4

695.8

1 Total net borrowing by domestic nonfinancial sectors
Bv sector and instrument
3
4

14
15
16
17
18

Other debt instruments

19
70
71
77
73
24

By borrowing sector
State and local governments

Bank loans n.e.c
Open market paper
Other

Nonfarm noncorporate
Corporate

25 Foreign net borrowing in United States
76
Bonds
Bank loans n.e.c
77
Open market paper
7,8
U.S. government loans
29
30 Total domestic plus foreign

*

Financial sectors
31 Total net borrowing by financial sectors . . .
By instrument
32 U.S. government related
33
Sponsored credit agency securities
34
Mortgage pool securities
35
Loans from U.S. government
36 Private financial sectors
37
Corporate bonds
38
Mortgages
39
Bank loans n.e.c
40
Open market paper
41
Loans from Federal Home Loan Banks
By sector
42 Sponsored credit agencies
43 Mortgage pools
44 Private financial sectors
45
Commercial banks
46
Bank affiliates
47
Savings and loan associations
48
Finance companies
49
REITs
50
CMO Issuers

99.2

148.7

198.3

297.2

285.2

168.9

227.7

237.1

357.3

313.6

256.8

218.8

67.8
1.4
66.4

74.9
30.4
44.4

2.8
13.2
13.3

105.9
14.0
89.8
2.2
121.8
53.5
.1
2.3
50.8
15.1

136.9
9.6
126.5
.8
100.2
65.8
.6
4.7
13.4
15.7

219.3
20.8
200.1
-1.5
138.0
76.1
-.5
3.3
35.1
24.0

180.4
8.6
173.3
-1.5
133.2
74.4
.3
-4.4
47.7
15.3

106.1
33.1
73.0

-.1
21.3
-7.0

168.3
30.2
138.8
-.8
116.9
66.8
.3
-3.3
28.8
24.4

156.1
51.8
104.3

73.8
33.0
.4
.7
24.1
15.7

178.1
15.2
163.3
-.4
119.1
70.9
.1
4.0
24.2
19.8

97.2
27.2
70.0

31.4
17.3

101.5
20.6
79.9
1.1
96.7
47.9
.1
2.6
32.0
14.2

100.7
59.2
.3
-2.2
9.8
33.6

112.7
75.5
.1
3.9
25.4
7.8

1.4
66.4
31.4
5.0
12.1
-2.1
13.0
-.2
3.6

30.4
44.4
73.8
7.3
15.6
22.7
18.2
.8
9.3

21.7
79.9
96.7
-4.9
14.5
22.3
52.7
.5
11.5

14.9
163.3
119.1
-3.6
4.6
29.8
48.4
1.0
39.0

29.5
138.8
116.9
7.1
2.9
36.0
30.3
1.5
39.1

27.2
70.0
71.7
-5.7
10.1
12.0
46.3
.5
8.5

16.1
89.8
121.8
-4.1
19.0
32.7
59.2
.5
14.4

10.4
126.5
100.2
-3.5
-1.8
23.1
50.7
.3
31.4

19.3
200.1
138.0
-3.8
11.1
36.4
46.1
1.6
46.6

7.1
173.3
133.2
13.2
11.5
25.1
29.0
.6
53.9

51.8
104.3
100.7
1.0
-5.7
46.9
31.7
2.5
24.3

33.1
73.0
112.7
-9.6
2.9
14.2
65.9
1.2
38.0

946.1

1,328.7

961.0

979.2

914.5

345.4 343.8
204.9 - 1 4 . 5
132.6 217.2
259.9 252.1
79.8
57.7
60.6
22.0
76.7
17.3
50.4
43.6

443.3
76.1
173.2
365.1
51.1
122.7
35.5
61.7

335.3
35.9
182.6
325.6
26.1
-42.4
44.6
53.3

290.4
33.1
164.5
298.0
55.4
46.1
21.8
69.9

263.0
32.7
191.9
248.9
41.9
60.0
29.4
46.7

*

71.7
42.3
*

All sectors
51 Total net borrowing

663.4

907.9

52
53
54
55
56
57
58
59

254.4
53.7
36.4
187.8
49.0
26.7
26.9
28.4

273.8
50.4
83.0
223.1
81.6
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

1,045.7 1,137.4

970.1

887.9

393.5
30.8
195.2
308.6
54.4
72.3
26.4
56.1

312.9
34.5
173.5
311.8
40.7
1.9
33.2
61.6

302.9
67.8
118.2
224.5
85.2
16.1
28.9
44.3

324.2
136.4
125.4
242.2
82.5
38.3
52.8
44.0

1,203.6

External corporate equity funds raised in United States
60 Total new share issues

58.1

-36.0

20.1

61
62
63
64
65

77,7
30.8
73.5
3,6
3.7

29.3
-65.3
-74.5
8.2
.9

84.4
-64.3
-81.5
13.5
3.7

Mutual funds
All other
Nonfinancial corporations
Financial corporations
Foreign shares purchased in United States




13.3

1.0

72.3
161.8
-68.0 -59.0
-80.8 -76.5
19.9
11.5
-2.4
1.3

61.6
-60.6
-75.5
12.3
2.6

93.9

96.7

91.0

92.0

-65.4

-101.0

107.1 151.9
-68.0 -55.2
-87.5 -68.7
7.9
14.8
4.7
5.7

171.8
-80.7
-92.7
15.2
-3.1

142.2
-50.2
-70.0
17.8
2.0

2.4
-67.8
-83.0
21.9
-6.7

3.7
-104.7
-117.5
16.5
-3.7

39.1

Flow of Funds
1.58

A43

D I R E C T A N D I N D I R E C T S O U R C E S O F F U N D S TO CREDIT M A R K E T S
Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates.

1983

1984

1985

1986

1987

1986

1985
Transaction category, or sector

1988

1987
HI

1 Total funds advanced in credit markets to domestic
nonfinancial sectors
7
3
4
5
6

By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to savings and loans
Other loans and securities

H2

HI

H2

HI

H2

HI

546.8

750.8

846.3

830.6

680.6

724.8

967.7

686.7

974.4

651.8

709.3

695.3

117.8
29.0
76.1
-7.0
19.7

157.6
38.9
56.5
15.7
46.6

193.1
37.9
94.6
14.2
46.3

304.2
69.4
160.3
19.8
54.6

240.6
68.2
135.6
24.4
12.3

197.3
48.8
88.8
13.3
46.4

188.8
27.0
100.5
15.1
46.2

271.3
76.8
124.2
15.7
54.6

337.1
62.0
196.4
24.0
54.7

260.3
57.1
167.3
15.3
20.6

220.8
79.2
103.9
33.6
4.1

219.5
93.4
90.7
7.8
27.6

7
8
9
10

Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign

9.7
69.8
14.7
23.7

17.1
74.3
8.4
57.9

16.8
95.5
18.4
62.3

9.7
177.3
19.4
97.8

-9.7
163.1
24.7
62.5

25.1
102.2
21.3
48.8

8.4
88.9
15.5
75.9

10.8
135.5
12.9
112.1

8.5
219.2
26.0
83.4

-10.4
176.2
19.6
75.0

-8.9
149.9
29.7
50.1

-9.0
99.8
-.7
129.4

11
12

Agency and foreign borrowing not in line 1
Sponsored credit agencies and mortgage pools
Foreign

67.8
17.3

74.9
8.4

101.5
1.2

178.1
9.6

168.3
4.3

97.2
-5.8

105.9
8.2

136.9
22.3

219.3
-3.1

180.4
-4.4

156.1
13.1

106.1
.5

514.2
225.4
53.7
14.5
58.3
155.1
-7.0

676.4
234.9
50.4
35.1
105.3
266.3
15.7

756.0
286.2
136.4
40.8
91.8
214.9
14.2

714.1
324.1
30.8
84.1
84.1
210.8
19.8

612.6
244.7
34.5
86.5
110.3
161.1
24.4

618.9
254.0
67.8
46.0
80.2
184.2
13.3

893.0
318.5
204.9
35.7
103.5
245.6
15.1

574.6
267.0
-14.5
108.3
79.2
150.3
15.7

853.6
381.2
76.1
59.8
89.0
271.4
24.0

567.5
278.2
35.9
79.6
95.6
93.4
15.3

657.7
211.2
33.1
93.3
124.9
228.8
33.6

582.3
169.6
32.7
99.6
113.9
174.2
7,8

394.7
144.3
135.6
100.1
14.7

581.0
168.9
150.2
121.8
140.1

569.8
186.3
83.0
148.9
151.6

746.3
194.8
105.5
181.7
264.3

552.7
136.3
134.2
204.1
78.0

436.6
118.8
55.9
131.4
130.5

703.0
253.9
110.1
166.4
172.7

672.2
88.1
95.5
170.3
318.3

820.3
301.4
115.6
193.1
210.3

525.1
70.9
105.3
215.9
133.0

580.2
201.8
163.2
192.4
23.0

590.5
153.8
100.8
242.4
93.5

Sources of funds
Private domestic deposits and RPs
Credit market borrowing

394.7
210.4
31.4

581.0
321.9
73.8

569.8
210.6
96.7

746.3
264.7
119.1

552.7
145.9
116.9

436.6
184.7
71.7

703.0
236.4
121.8

672.2
261.8
100.2

820.3
267.6
138.0

525.1
62.1
133.2

580.2
229.6
100.7

590.5
203.5
112.7

Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net

152.9
14.6
-5.3
115.0
28.7

185.3
8.8
4.0
124.0
48.5

262.5
19.7
10.3
131.9
100.7

362.5
12.9
1.7
144.3
203.6

289.9
44.0
-5.8
168.5
83.2

180.2
8.0
13.8
118.9
39.6

344.9
31.5
6.7
144.9
161.8

310.2
12.1
-4.9
131.3
171.7

414.8
13.7
8.3
157.2
235.5

329.8
25.0
3.3
187.1
114.3

250.0
63.0
-15.0
149.8
52.1

274.3
15.9
19.4
221.6
17.4

Private domestic nonfinancial investors
Direct lending in credit markets
U.S. government securities
State and local obligations
Corporate and foreign bonds
Open market paper
Other

150.9
91.0
38.8
-8.3
12.4
17.0

169.2
115.4
26.5
-.8
4.0
24.2

282.9
175.7
39.6
2,4
45.6
19.6

86.9
36.9
-2.6
34.9
-3.0
20.7

176.8
69.6
67.1
9.8
7.8
22.5

254.0
168.6
45.0
8.0
15.3
17.1

311.8
182.8
34.3
-3.2
75.9
22.1

2.5
-36.2
-21.8
62.2
-17.1
15.5

171.3
110.1
16.7
7.5
11.2
25.9

175.6
76.9
63.4
-19.4
31.1
23.5

178.1
62.4
70.9
38.9
-15.5
21.4

104.5
84.4
35.6
-19.2
-8.7
12.3

Deposits and currency
Currency
Checkable deposits
Small time and savings accounts
Money market fund shares
Large time deposits
Security RPs
Deposits in foreign countries

227.8
14.3
28.8
215.4
-39.0
-8.3
13.5
3.1

325.4
8.6
27.9
150.7
49.0
84.3
10.0
-5.1

220.9
12.4
40.9
138.6
8.9
7.6
14.6
-2.1

285.0
14.4
93.2
120.8
41.5
-11.7
20.8
5.9

162.0
19.0
-2.7
75.9
28.2
27.6
16.9
-2.8

194.5
16.5
6.8
162.4
15.5
-3.9
3.9
-6.8

247.2
8.2
74.9
114.8
2.2
19.1
25.4
2.6

275.4
11.5
74.7
113.6
48.6
4.2
20.7
2.1

294.7
17.3
111.8
128.1
34.4
-27.5
20.8
9.8

51.4
11.0
-29.2
50.5
8.4
9.2
23.2
-21.7

272.7
27.1
23.9
101.2
48.0
46.0
10.5
16.0

206.3
11.5
14.5
149.6
6.1
15.3
18.0
-8.8

378.7

494.6

503.7

372.0

338.9

448.5

559.0

277.9

466.0

227.0

450.8

310.8

Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds

20.9
76.8
38.2

20.8
85.9
66.7

22.8
75.4
82.0

36.2
104.5
110.7

35.1
90.2
106.5

27.4
70.5
56.7

19.3
78.7
107.4

38.3
117.0
124.2

34.7
96.1
97.2

40.2
92.5
100.0

30.6
88.2
113.1

31.6
101.4
145.3

MEMO: Corporate equities not included above
Total net issues
Mutual fund shares
53
Other equities
54 Acquisitions by financial institutions
55 Other net purchases

58.1
27.2
30.8
50.4
7.7

-36.0
29.3
-65.3
15.8
-51.8

20.1
84.4
-64.3
45.6
-25.5

93.9
161.8
-68.0
48.5
45.4

13.3
72.3
-59.0
22.6
-9.3

1.0
61.6
-60.6
60.4
-59.4

39.1
107.1
-68.0
30.7
8.5

96.7
151.9
-55.2
34.9
61.8

91.0
171.8
-80.7
62.1
29.0

92.0
142.2
-50.2
50.9
41.1

-65.4
2.4
-67.8
-5.6
-59.8

-101.0
3.7
-104.7
-21.2
-79.9

N

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

Private financial intermediation
70 Credit market funds advanced by private financial
71
77

73
24
?S

76
27
78
79

30
31
32
33

34
35
36
37
38
39

40
41
47
43
44
45
46

Commercial banking
Savings institutions
Insurance and pension funds
Other finance

47 Total of credit market instruments, deposits, and
currency
48
49
50
SI
57

NOTES BY LINE NUMBER.

1. Line 1 of table 1.57.
2. Sum of lines 3 - 6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities.
13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33.
Also sum of lines 28 and 47 less lines 40 and 46.
18. Includes farm and commercial mortgages.
26. Line 39 less lines 40 and 46.
27. Excludes equity issues and investment company shares. Includes line 19.
29. Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affiliates, less
claims on foreign affiliates and deposits by banking in foreign banks.
30. Demand deposits and note balances at commercial banks.




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 1988

2.10 NONFINANCIAL BUSINESS ACTIVITY

Selected Measures1

1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1988
Measure

1985

1986

1987
Jan.

1 Industrial production
2
3
4
5
6
7

123.7

Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials

125.1

129.8

Feb.

Mar.

Apr.

May

June

July

Aug/

Sept.

134.4

134.4

134.7

135.4

136.1

136.5

138.1'

138.3

138.3

r

130.6
131.0
119.8
145.8
129.3
114.3

3

11 Construction contracts (1982 = 100)

142.7
141.1
131.2
154.3
148.1
123.0

143.4
141.6
131.3
155.3
149.4
122.1

143.6
141.8
131.2
155.9
149.9
122.5

144.1
142.5
131.9
156.5
149.6
123.6

145.0
143.5
132.7
157.7
150.4
123.9

145.3
144 .C
133.0
158.5'
150.0
124.5

146.5
145.0f
134. r
159.5'
151.5'
126.7'

147.0
145.6
134.6
160.0
151.8
126.6

146.9
145.5
134.2
160.4
151.8
126.6

129.1

134.6

139.4

139.5

140.0

140.8

141.8

142.1

143.5'

143.7

144.0

80.1
80.3

Capacity utilization (percent) 2
9
Manufacturing
10 Industrial materials industries

138.3
136.8
127.7
148.8
143.5
118.2

126.4

Industry groupings
8 Manufacturing

133.3
132.5
124.0
143.6
136.2
113.8

79.7
78.6

81.1
80.5

82.7
83.0

82.6
82.3

82.7
82.4

82.9
82.9

83.3
83.0

83.3
83.2

83.9
84.4'

83.8
84.3

83.8
84.2

150.0

158.0

161.0

145.0

159.0

154.0

144.0

157.0

165.0

156.0

155.0

151.0

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 persona] income 5
Retail sales 6

118.3
102.1
97.8
92.6
125.0
206.9
198.8
172.8
205.8
189.6

120.7
100.9
96.3
91.2
129.0
219.7
210.7
177.4
218.9
199.5

124.1
101.8
96.8
92.1
133.4
235.1
226.2
183.8
232.7
209.3

126.4
103.4
98.4
93.5
136.1
244.0
235.7
189.4
242.4
214.5

127.0
103.8
98.5
93.7
136.7
245.5
237.3
190.2
244.8
216.7

127.3
104.1
98.6
93.7
137.1
248.0
238.9
193.6
247.0
220.3

127.7
104.5
98.8
93.9
137.4
248.8
240.9
192.8
243.3
219.4

127.9
104.6
99.0
94.1
137.7
250.2
242.3
193.8
249.5
221.2

128.6
105.1
99.3
94.4
138.4
251.6
244.2
195.4
251.2
222.5

128.9
105.4
99.5
94.6
138.7
253.3
246.7
196.6'
252.8
223,7r

129.1
105.4
99.4
94.5
139.0
254.0
247.2
196.7
253.5
223.5

129.4
105.3
99.3
94.3
139.5
255.3
248.6
198.4
254.7
222.6

22
23

Prices 7
Consumer (1982-84 = 100)
Producer finished goods (1982 = 100) . . .

107.6
104.7

109.6
103.2

113.6
105.4

115.7
106.3

116.0
106.1

116.5
106.3

117.1
107.0

117.5
107.5

118.0
107.9

118.5
108.5

119.0
108.8

119.8
108.6

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
( 1 9 7 7 = 1 0 0 ) t h r o u g h D e c e m b e r 1984 i n 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.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, Department of Commerce, and other sources.
3. Index of dollar value of total construction contracts, including residential,
nonresidential and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.




5. Based on data in Survey of Current Business (U.S. Department of Commerce).
6. Based on Bureau of Census data published in Survey of Current Business.
7. Data without seasonal adjustment, as published in Monthly Labor Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5,and 6,
and indexes for series mentioned in notes 3 and 7 may also be found in the Survey
of Current Business.
Figures for industrial production for the last two months are preliminary and
estimated, respectively.

Selected Measures
2.11

A45

LABOR FORCE, EMPLOYMENT, A N D U N E M P L O Y M E N T
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1988
Category

1985

1986

1987
Feb.

Mar.

Apr.

May

June

July

Aug.'

Sept.

HOUSEHOLD SURVEY D A T A

1 Noninstitutional population1

180,440

182,822

185,010

186,219

186,361

186,478

186,600

186,755

186,911

187,033

187,178

2 Labor force (including Armed Forces) 1
Civilian labor force
3
Employment
4
Nonagricultural industries
5
Agriculture
Unemployment
6
Number
7
Rate (percent of civilian labor force)
8 Not in labor force

117,695
115,461

120,078
117,834

122,122
119,865

123,598
121,348

123,153
120,903

123,569
121,323

123,204
120,978

123,665
121,472

123,866
121,684

124,234
122,031

124,140
121,924

103,971
3,179

106,434
3,163

109,232
3,208

111,182
3,228

110,899
3,204

111,485
3,228

111,160
3,035

111,933
3,085

112,014
3,046

112,029
3,151

112,158
3,169

8,312
7.2
62,745

8,237
7.0
62,744

7,425
6.2
62,888

6,938
5.7
62,621

6,801
5.6
63,208

6,610
5.4
62,909

6,783
5.6
63,396

6,455
5.3
63,090

6,625
5.4
63,045

6,851
5.6
62,799

6,5%
5.4
63,038

97,519

99,525

102,310

104,729

105,020

105,281

105,489

106,057

106,271r

106,440

106,695

19,260
927
4,673
5,238
23,073
5,955
22,000
16,394

18,965
777
4,816
5,255
23,683
6,283
23,053
16,693

19,065
721
4,998
5,385
24,381
6,549
24,196
17,015

19,390
731
5,150
5,513
25,080
6,636
24,975
17,254

19,405
733
5,192
5,530
25,111
6,651
25,078
17,320

19,460
737
5,238
5,543
25,182
6,650
25,163
17,308

19,490
739
5,237
5,556
25,245
6,656
25,216
17,350

19,544
740
5,308
5,582
25,353
6,679
25,472
17,379

19,593r
740'
5,33<y
5,598r
25,435r
6,684'
25,561'
17,330

19,574
737
5,335
5,602
25,467
6,688
25,632
17,405

19,556
730
5,351
5,625
25,526
6,693
25,6%
17,518

ESTABLISHMENT SURVEY D A T A

9 Nonagricultural payroll employment3
10
11
12
13
14
15
16
17

Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government

1. Persons 16 years of age and over. Monthly figures, which are based on
sample data, relate to the calendar week that contains the 12th day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.




3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the March 1984
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).

A46

Domestic Nonfinancial Statistics • December 1988

2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1
Seasonally adjusted
1987

1987

1988

1988

Series
Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Capacity (percent of 1977 output)

Output (1977 = 100)

Q1

Q2

Q3

Utilization rate (percent)

1 Total industry

133.2

134.5

136.0

138.2

162.2

163.1

164.2

165.2

82.1

82.4

82.8

83.7

2 Mining..
3 Utilities.

104.3
112.3

102.5
114.7

103.3
111.7

104.8
114.9

128.4
139.4

127.7
139.8

127.0
140.1

126.2

80.3
82.0

81.5'

140.4

81.2
80.6

79.Y

83.1
81.8

4 Manufacturing.

138.1

139.6

141.6

167.7

168.9

170.2

171.5

82.3

82.7

83.2

83.8

5 Primary processing...
6 Advanced processing.

122.2
147.6

123.0
149.7

123.9
152.3

125.7
154.5

140.6
184.1

141.6
185.6

142.7
186.7

143.9
188.1

86.9
80.1

86.9
80.7

86.8
81.5

87.4
82.2

7 Materials

122.5

122.5

124.0

126.6

147.8

148.5

149.3

150.1

82.9

82.5

83.0

84.3

8 Durable goods
9
Metal materials
10 Nondurable goods
11 Textile, paper, and chemical
12
Paper
13
Chemical

130.3
91.4
130.1
133.0
145.1
135.5

131.5
86.2
129.4
131.6
145.7
133.5

134.2
88.1
130.5
132.6
145.9
135.7

136.9
92.4
132.4
135.1

164.7
108.9
145.6
145.4
146.2
152.0

165.7
108.8
146.8
146.7
147.6
153.5

166.8
109.1
148.3
148.5
149.2
155.4

167.9
109.4
149.8
150.2

79.1
84.0
89.3
91.5
99.2
89.1

79.4
79.2
88.1
89.7
98.7
87.0

80.4
80.8
87.9'
89.2r
97.8
87.3

81.5
84.5
88.4
90.0

14 Energy materials.

102.1

100.9

100.4

103.5

119.9

119.7

119.4

119.1

85.2

84.3

84.2'

86.9

May

June

July r

Aug/

Sept.

Previous cycle 2
High

Low

Latest cycle
High

Low

1987
Sept.

1988
Jan.

Feb.

Apr.

Capacity utilization rate (percent)
15 Total industry

88.6

72.1

86.9

69.5

81.1

82.5

82.4

82.4

82.7

82.9

83.0

83.8

83.8

83.6

16 Mining..
17 Utilities.

92.8
95.6

87.8
82.9

95.2
88.5

76.9
78.0

79.1
80.0

80.7
82.4

79.5
82.6

80.6
81.0

82.3
79.3

80.8
79.7

81.0
80.2

83.2
81.9

82.8
83.6

83.1
79.9

18 Manufacturing

87.7

69.9

86.5

68.0

81.3

82.7

82.6

82.7

82.9

83.3

83.3

83.9

83.8

83.8

19 Primary processing
20 Advanced processing..

91.9
86.0

68.3
71.1

89.1
85.1

65.0
69.5

85.1
79.5

87.1
80.7

86.6
80.7

86.9
80.7

86.9
81.2

87.0
81.7

86.6
81.7

87.8
82.2

87.2
82.2

87.2
82.2

21 Materials

92.0

70.5

89.1

68.5

81.2

83.0

82.3

82.4

82.9

83.0

83.2

84.5

84.3

84.2

22 Durable goods
23
Metal materials.

91.8
99.2

64.4
67.1

89.8
93.6

60.9
45.7

77.0
78.3

79.7
80.1

79.3
79.3

79.1
78.3

79.7
79.3

80.8
82.1

80.7
80.8

81.7
84.9

81.4
84.3

81.6
84.2

24 Nondurable goods

91.1

66.7

88.1

70.7

88.7

88.8

87.3

88.3

88.7

87.7

87.6

88.9

88.1

88.1

92.8
98.4
92.5

64.8
70.6
64.4

89.4
97.3
87.9

68.8
79.9
63.5

90.7
98.5
87.4

90.8
100.6
87.8

88.5
97.8
85.7

89.9
97.8
87.5

90.1
98.1
88.0

88.8
98.1
86.9

88.9
97.2
87.0

90.3
98.7
88.6

89.8
97.5
88.6

89.8

94.6

86.9

94.0

82.3

83.5

84.7

84.1

84.1

84.5

83.3

84.4

86.2

87.3

86.3

25
26
27

Textile, paper, and
chemical
Paper
Chemical

28 Energy materials.

1. These data also appear in the Board's G.3 (402) release. For address, see
inside front cover.




2. Monthly high 1973; monthly low 1975.
3. Monthly highs 1978 through 1980; monthly lows 1982.

Selected Measures
2.13 INDUSTRIAL PRODUCTION

A47

Indexes and Gross Value1

Monthly data are seasonally adjusted

portion

1988

1987

1977
Groups

1987
avg.
Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June'

July

Aug."

Sept.'

136.1

136.5

138.1

138.3

138.3

146.9
145.5
134.2
160.4
151.8
126.6
126.3
126.7
124.7
97.4

Index (1977 = 100)
MAJOR MARKET
1

Total index

?

100.00

129.8

131.0

132.5

133.2

133.9

134.4

134.4

134.7

135.4

57.72
44.77
25.52
19.25
12.94
42.28

138.3
136.8
127.7
148.8
143.4
118.2

139.4
137.8
127.7
151.2
144.9
119.7

140.9
139.3
129.0
153.0
146.1
121.2

141.0
139.2
129.4
152.2
147.3
122.5

141.3
139.8
129.8
153.1
146.5
123.7

142.7
141.1
131.2
154.3
148.1
123.0

143.4
141.6
131.3
155.3
149.4
122.1

143.6
141.8
131.2
155.9
149.9
122.5

144.1
142.5
131.9
156.5
149.6
123.6

145.0
143.5
132.7
157.7
150.4
123.9

145.3
144.0
133.0
158.5
150.0
124.5

146.5
145.0
134.1
159.5
151.5
126.7

147.0
145.6
134.6
160.0
151.8
126.6

6.89
2.98
1.79
1.16
.63
1.19
3.91
1.24
1.19
.96
1.71

120.2
118.5
115.1
90.7
160.5
123.5
121.6
141.5
142.1
130.7
102.0

118.6
114.2
107.2
79.1
159.4
124.8
121.9
141.8
140.6
131.6
102.2

124.3
124.3
122.2
94.7
173.2
127.5
124.3
145.7
146.1
132.9
104.1

123.9
121.3
118.7
91.9
168.5
125.2
125.8
150.1
150.5
133.5
103.9

120.3
115.4
110.2
83.7
159.5
123.3
123.9
142.7
142.6
133.9
104.8

121.7
118.7
112.8
77.5
178.3
127.7
124.0
142.2
140.9
134.2
105.2

120.6
117.6
111.8
79.5
171.6
126.4
122.8
140.6
141.4
132.3
104.7

120.4
120.6
116.4
86.3
172.2
126.9
120.2
132.8
132.7
133.1
103.9

123.3
121.9
118.0
91.0
168.2
127.8
124.3
143.2
142.2
133.1
105.7

125.6
127.1
126.9
98.9
178.9
127.4
124.4
142.2
143.0
135.8
105.2

125.3
127.1
125.3
99.0
174.1
129.7
123.9
138.0
137.1
135.9
107.0

125.3
124.4
120.8
93.8
170.7
129.9
125.9
143.3
143.8
136.5
107.4

126.3
125.4
122.8
92.6
178.9
129.3
126.9
146.5
146.1
136.6
107.4

19 Nondurable consumer goods
70
Consumer staples
Consumer foods and tobacco
71
Nonfood staples
7?
Consumer chemical products
n
Consumer paper products
74
Consumer energy
?*>
76
Consumer fuel
Residential utilities
27

18.63
15.29
7.80
7.49
2.75
1.88
2.86
1.44
1.42

130.5
137.3
136.2
138.5
162.9
151.8
106.3
93.1
119.8

131.0
137.8
137.0
138.6
163.6
153.2
105.0
91.6
118.7

130.8
137.4
137.5
137.2
160.0
151.8
105.8
92.4
119.4

131.5
138.3
137.3
139.4
163.5
152.8
107.4
93.2
121.8

133.3
140.7
139.2
142.2
167.7
157.0
108.0
95.4
120.7

134.7
142.3
140.3
144.3
170.7
157.1
110.6
95.4
126.0

135.3
142.9
140.8
145.0
171.7
157.5
111.3
97.0
125.8

135.1
142.5
139.4
145.7
172.7
159.1
111.0
97.9
124.5

135.1
142.5
138.3
146.8
175.6
161.4
109.6
98.9
120.5

135.4
143.1
139.2
147.0
177.9
162.4
107.3
94.3
120.6

135.8
143.5
139.3
147.9
179.5
162.8
107.7
93.0
122.6

137.4
145.3
140.9
149.8
181.8
164.0
109.8
94.6
125.4

137.7
145.7
140.5
151.1
183.8
163.5
111.6
95.3

Equipment
78 Business and defense equipment
79
Business equipment
30
Construction, mining, and farm
31
Manufacturing
Power
V
Commercial
Transit
34
Defense and space equipment
35

18.01 153.6
14.34 144.5
2.08 62.2
3.27 117.9
1.27 82.6
5.22 226.5
2.49 108.4
3.67 188.9

155.2
146.3
66.1
122.0
81.1
229.1
105.1
189.8

157.2
148.7
66.5
120.5
83.0
232.4
112.5
190.3

156.6
148.3
66.3
120.6
83.1
232.1
111.2
188.7

157.8
149.8
67.4
122.2
84.2
235.5
109.1
188.9

159.2
151.2
67.1
125.4
86.2
238.0
106.5
190.6

160.3
152.4
67.6
124.9
88.3
240.3
108.2
191.0

160.8
153.3
68.3
127.0
87.8
239.9
111.1
189.9

161.4
154.6
70.8
127.7
87.0
241.5
112.3
187.9

162.7
156.9
71.8
128.3
87.4
245.7
115.3
185.5

163.5
158.1
72.4
130.3
88.3
247.1
115.7
184.6

164.6
159.4
73.5
133.5
89.8
247.8
115.9
184.9

165.2
160.3
73.7
135.6
90.7
248.6
115.5
184.4

165.7
161.0
74.1
137.4
91.3
249.0
115.9
183.9

4
5
6
7

Final products
Consumer goods
Equipment
Intermediate products
Materials

Consumer goods
8 Durable consumer goods
9
Automotive products
Autos and trucks
in
Autos, consumer
ii
Trucks, consumer
I?
Auto parts and allied goods
N
14
Home goods
Appliances, A/C and TV
N
Appliances and TV
16
Carpeting and furniture
17
Miscellaneous home goods
18

Intermediate products
36 Construction supplies
37 Business supplies
General business supplies
38
Commercial energy products
39
Materials
40 Durable goods materials
Durable consumer parts
41
Equipment parts
4?
43
Durable materials n.e.c
Basic metal materials
44

129.7
126.1
143.7

137.2
145.0
149.8

5.95
6.99
5.67
1.31

131.5
153.5
158.6
131.1

132.3
155.6
160.9
132.7

133.3
157.1
162.3
134.6

134.2
158.4
164.3
132.9

133.8
157.4
163.3
131.8

136.8
157.8
163.1
135.0

137.7
159.4
165.0
135.3

137.3
160.7
166.6
135.3

137.6
159.9
165.7
134.6

138.8
160.3
165.5
137.8

137.6
160.6
165.9
137.5

138.3
162.7
168.5
137.9

137.7
163.8
169.4
139.6

137.8

20.50
4.92
5.94
9.64
4.64

125.0
100.9
159.0
116.4
86.7

126.4
99.0
161.1
118.9
91.3

128.7
102.3
162.2
121.6
95.3

130.2
103.1
163.2
123.6
96.5

132.0
104.6
165.3
125.5
100.0

131.8
104.7
167.4
123.7
92.9

131.4
104.4
167.6
123.0
91.4

131.3
103.5
167.3
123.4
90.5

132.7
106.2
168.9
124.0
91.6

134.8
110.0
170.8
125.3
94.8

134.9
110.3
171.6
124.8
93.7

136.8
110.3
173.7
127.6
98.4

136.7
110.0
173.6
127.7
98.5

137.2
111.3
174.3
127.7
98.0

45 Nondurable goods materials
46 Textile, paper, and chemical
materials
47
Textile materials
48
Pulp and paper materials
49
Chemical materials
Miscellaneous nondurable materials . . .
50

10.09

125.8

128.6

128.2

129.6

132.5

129.9

128.1

130.1

131.1

130.1

130.1

132.7

132.0

132.4

7.53
1.52
1.55
4.46
2.57

127.6
111.7
141.0
128.4
120.4

131.2
116.0
143.3
132.2
120.9

131.0
113.0
142.0
133.4
119.7

132.3
112.7
144.4
134.7
121.7

135.6
113.6
149.0
138.4
123.3

132.7
112.6
148.0
134.2
121.8

129.9
110.2
144.4
131.5
123.0

132.4
112.7
144.8
134.8
123.2

133.3
111.9
145.8
136.2
124.6

131.9
107.5
146.4
135.1
125.1

132.1
107.5
145.4
135.8
124.2

135.1
108.2
150.2
139.1
125.7

134.9
109.3
146.9
139.4

135.4

51 Energy materials
Primary energy
57
Converted fuel materials
53

11.69
7.57
4.12

99.8
105.0
90.3

100.2
104.6
92.2

101.8
106.8
92.7

102.8
108.4
92.6

101.7
107.7
90.7

101.4
107.3
90.6

100.6
104.8
93.0

100.6
105.0
92.6

101.0
106.7
90.5

99.5
104.0
91.2

101.3
105.6
93.5

103.7
108.1
95.6

104.0
107.9
96.9

102.8




A48
2.13

Domestic Nonfinancial Statistics • December 1988
INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued

Groups

SIC
code

1977
proportion

1988

1987
1987
avg.
Sept.

Nov.

Oct.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June r

July

Aug."

Sept.'

Index (1977 = 100)
MAJOR INDUSTRY

15.79
9.83
5.96
84.21
35.11
49.10

104.3
100.7
110.3
134.6
136.7
133.1

105.4
101.9
111.2
135.7
138.6
133.7

106.8
103.6
112.1
137.3
138.1
136.8

107.9
104.6
113.2
137.9
139.6
136.7

107.3
104.6
111.7
138.9
141.3
137.3

107.8
103.3
115.2
139.4
141.4
137.9

106.8
101.5
115.6
139.5
141.1
138.4

106.7
102.7
113.3
140.0
141.7
138.8

107.1
104.7
111.0
140.8
142.3
139.7

106.0
102.6
111.6
141.8
142.1
141.5

106.8
103.0
113.2
142.1
142.6
141.7

108.9
105.3
115.0
143.5
144.4
142.9

109.4
104.5
117.4
143.7
144.3
143.2

107.6
104.7
112.3
144.0
144.6
143.6

10
11.12
13
14

.50
1.60
7.07
.66

77.5
131.8
92.7
128.2

86.5
133.3
93.3
130.0

85.6
140.3
94.1
131.0

90.4
142.9
94.2
134.1

96.5
140.6
94.1
135.6

91.5
140.2
93.1
132.1

83.9
133.7
92.4
134.3

84.9
129.1
94.8
136.9

86.9
136.0
95.5
141.2

86.0
127.8
94.6
140.1

82.2
126.9
95.8
137.4

93.5
141.5
94.7
140.3

137.2
94.6
138.6

141.9

1 Mining and utilities
2
Mining
Utilities
3
4 Manufacturing
5
Nondurable
Durable
6
7
8
9
10

Mining
Metal
Coal
Oil and gas extraction
Stone and earth minerals

11
12
13
14
15

Nondurable
manufactures
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products

20
21
22
23
26

7.96
.62
2.29
2.79
3.15

137.7
103.4
115.8
107.4
144.4

139.5
101.7
118.2
107.6
147.4

138.0
103.7
116.8
108.0
146.0

138.9
106.5
117.3
109.4
148.3

140.1
110.5
118.2
107.8
150.6

141.2
105.8
116.2
108.7
149.9

141.9
107.0
115.3
108.5
148.0

141.1
107.2
117.0
108.7
149.1

140.3
107.2
117.3
109.2
149.2

141.0
107.2
114.6
108.6
149.5

141.3
104.5
114.3
109.3
148.6

142.9
100.3
116.0
109.4
152.3

142.7

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

172.0
140.1
93.5
163.6
60.0

174.9
142.4
93.5
165.2
60.7

175.2
141.5
94.6
166.7
59.6

175.7
144.4
93.3
169.9
60.7

176.9
147.9
96.1
170.6
57.5

177.5
147.9
96.3
170.5
58.3

178.7
145.4
95.9
172.3
59.7

180.4
146.4
98.4
172.2
59.5

181.8
148.9
98.5
172.3
58.0

180.7
149.1
95.2
173.4
57.1

182.3
150.5
94.1
174.4
58.9

184.2
153.3
95.0
175.6
59.1

184.8
154.1
94.9
175.8
59.3

Durable manufactures
21 Lumber and products
22 Furniture and fixtures
23 Clay, glass, and stone products.

24
25
32

2.30
1.27
2.72

130.3
152.8
119.1

126.9
155.9
118.6

129.8
156.0
118.9

134.0
158.5
120.5

133.6
159.4
120.1

136.3
158.0
120.4

139.0
158.3
121.6

137.8
159.4
122.5

138.0
159.2
121.4

139.8
160.5
121.5

136.4
161.2
123.4

136.9
163.4
122.0

134.0
162.2
121.8

33
331.2
34
35
36

5.33
3.49
6.46
9.54
7.15

111.0 111.1

81.5
70.8

84.5
74.6

152.7
172.3

156.6
173.4

90.6
82.0
113.5
158.0
175.5

90.2
79.7
113.6
157.2
175.6

90.6
81.9
115.8
161.0
175.9

86.5
77.8
117.1
162.9
177.4

86.4
77.4
117.6
163.6
177.8

85.1
74.2
118.8
164.6
176.6

85.3
74.5
118.8
167.2
178.7

89.2
78.6
119.8
170.3
179.1

87.5
74.2
120.4
171.2
179.5

91.7
80.2
121.9
173.1
181.3

91.9
79.7
122.2
174.1
182.6

122.7
175.4
182.5

37
371

9.13
5.25

129.2
111.8

125.5
105.6

132.0
116.0

130.4
114.0

128.1
110.2

128.6
109.7

128.4
109.3

130.0
113.0

130.4
114.8

133.1
119.6

132.8
119.1

131.9
116.6

131.8
117.3

132.3
118.7

372-6.9
38
39

3.87
2.66
1.46

152.8
143.9
102.6

152.5
145.6
102.1

153.7
146.7
104.6

152.7
147.8
104.5

152.4
145.5
105.6

154.2
148.2
105.0

154.5
149.2
104.4

153.0
149.7
105.1

151.5
150.5
105.9

151.5
151.3
106.0

151.4
153.0
107.6

152.7
156.0
107.5

151.5
156.2
107.8

150.8
156.2

4.17

126.6

127.5

126.8

127.5

125.6

130.3

130.7

129.0

127.6

129.7

132.1

134.6

137.5

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

116.1
149.3
185.5
94.8

91.6

Gross value (billions of 1982 dollars, annual rates)
MAJOR MARKET

35 Products, total

517.5 1,735.8 1,735.9 1,774.1 1,772.4 1,778.8 1,790.6 1,797.5 1,807.5 1,812.2 1,820.1 1,813.9 1,822.6 1,826.3 1,826.6

36 Final
37
Consumer goods
38
Equipment
39 Intermediate

405.7 1,333.8 1,330.3 1,360.9 1,359.9 1,359.4 1,375.5 1,381.1 1,385.9 1,393.9 1,397.1 1,394.3 1,399.2 1,402.5 1,403.0
272.7
866.0 856.9 876.6 879.8 881.2 893.6 893.7 893.2 899.1 898.9 893.6 895.7 898.6 896.1
467.8 473.4 484.4 480.1 478.2 481.9 487.3 492.7 494.7 498.3 500.7 503.5 503.9 506.9
133.0
111.9
402.0 405.6 413.2 412.5 419.4 415.1 416.5 421.6 418.4 423.0 419.6 423.4 423.8 423.6

1. These data also appear in the Board's G.12.3 (414) release. For address, see
inside front cover.
A major revision of the industrial production index and the capacity
utilization rates was released in July 1985. See "A Revision of the Index of




Industrial Production" and accompanying tables that contain revised indexes
( 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.

Selected Measures
2.14

A49

HOUSING A N D CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1988

1987

Item

1985

1986

1987

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June'

July'

Aug.

Private residential real estate activity (thousands of units)
NEW UNITS

Permits authorized
?
1-family
3
2-or-more-family

1,733
957
777

1,750
1,071
679

1,535
1,024
511

1,459
971
488

1,372
957
415

1,248
918
330

1,429
1,003
426

1,476
1,030
446

1,449
960
489

1,436
982
454

1,493
1,002
491

1,420
984
436

1,464
1,022
442

Started
1-family
2-or-more-family

1,742
1,072
669

1,805
1,179
626

1,621
1,146
474

1,661
1,129
532

1,399
1,035
364

1,382
1,016
366

1,519
1,102
417

1,529
1,172
357

1,584
1,093
491

1,393
1,004
389

1,465
1,092
373

1,477
1,068
409

1,431
1,075
356

Under construction, end of period 1 .
2-or-more-family

1,063
539
524

1,074
583
490

987
591
397

1,042
625
417

1,016
618
398

1,008
614
394

983
596
387

999
617
382

999
622
377

984
610
374

982
609
373

977
608
369

968
609
359

10
11
12

Completed
1-family
2-or-more-family

1,703
1,072
631

1,756
1,120
637

1,669
1,123
546

1,571
1,088
483

1,624
1,104
520

1,550
1,098
452

1,452
1,043
409

1,598
1,094
504

1,665
1,059
606

1,450
1,090
360

1,518
1,106
412

1,529
1,076
453

1,510
1,048
462

13

Mobile homes shipped

284

244

233

222

227

200

208

212

213

216

230

206

223

688
350

748
361

672
370

625
362

586
365

579
368

648
359

664
372

681
367

681'
370

713
367

712
365

713
365

1

4
6
7
8
9

Merchant builder activity in
l-family units
14 Number sold
1
15 Number for sale, end of period
Price (thousands of dollarsj1
Median
16
Units sold
17

Units sold

18

Number sold

84.3

92.2

104.7

117.0

111.8

119.0

110.9

108.9

111.0

110.0'

112.5

120.0

112.0

101.0

112.2

127.9

139.2

136.2

144.4

137.6

133.2

135.6

133.5'

136.6

142.3

145.2

3,217

3,566

3,530

3,370

3,330

3,170

3,250

3,330

3,520

3,590

3,820

3,630

3,710

75.4
90.6

80.3
98.3

85.6
106.2

85.0
106.6

85.4
107.1

87.4
108.7

88.1
110.4

87.9
110.7

87.3
108.7

88.8
111.9

90.2
115.4

90.7
114.8

91.4
115.1

EXISTING UNITS ( l - f a m i l y )

Price of units sold
(thousands of dollars)
19 Median
2 0 Average

Value of new construction 3 (millions of dollars)
CONSTRUCTION
21

Total put in place

V Private
73
Residential
24
Nonresidential, total
Buildings
?S
Industrial
76
Commercial
77
Other
28
Public utilities and other
79
30
31
32
33

Public
Military
Highway
Conservation and d e v e l o p m e n t . . .
Other

355,735

386,093

398,848

407,066

410,870

395,264

392,456

403,555

396,238r 398,473' 395,714

398,339

396,111

291,665
158,475
133,190

314,651
187,147
127,504

323,819
194,772
129,047

331,497
195,599
135,898

331,641
195,822
135,819

321,550
195,168
126,382

317,754
192,097
125,657

324,257
195,554
128,703

318,515 R
192,026'
126,489 R

320,194'
190,374'
129,820'

317,708
188,071
129,637

319,099
189,441
129,658

318,620
190,804
127,816

15,769
59,629
12,619
45,173

13,747
56,762
13,216
43,779

13,707
55,448
15,464
44,428

14,512
59,374
16,692
45,320

14,130
55,831
17,708
48,150

13,480
53,555
16,954
42,393

13,489
53,571
17,101
41,496

14,546
54,843
17,301
42,013

13,849'
56,169'
16,382'
40,089'

13,907'
57,447'
16,847'
41,619'

13,676
56,585
16,757
42,619

13,118
56,547
16,193
43,800

12,720
54,858
16,370
43,868

64,070
3,235
21,540
4,777
34,518

71,437
3,868
22,681
4,646
40,242

75,028
4,327
22,758
5,162
42,781

75,569
5,080
23,439
4,871
42,179

79,228
4,879
25,274
5,759
43,316

73,715
4,172
24,808
4,038
40,697

74,702
3,280
25,348
4,535
41,539

79,298
4,216
26,963
4,899
43,220

77,723'
3,872'
26,912'
4,226'
42,713'

78,278'
3,547'
25,254'
4,460'
45,017'

78,007
4,844
24,822
4,596
43,745

79,240
4,182
27,568
4,873
42,617

77,491
4,085
24,126
4,900
44,380

1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly
comparable with data in previous periods because of changes by the Bureau of the
Census in its estimating techniques. For a description of these changes see
Construction Reports (C-30-76-5), issued by the Bureau in July 1976.




NOTE. Census Bureau estimates for all series except (1) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing
Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices
of existing units, which are published by the National Association of Realtors. All
back ana 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 1988
C O N S U M E R A N D P R O D U C E R PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Item

Change from 3 months earlier
(at annual rate)
1987

1987

1988

Index
level
Sept.

1988

1988

Sept.

Change from 1 month earlier

Sept.

1988'

Dec.

Mar.

June

Sept.

May

June

July

Aug.

Sept.

CONSUMER PRICES 2
(1982-84=100)
1

All items

4.4

4.2

3.2

4.2

4.5

4.8

.3

.3

.4

.4

.3

119.8

2
3
4
5
6

Food
Energy items
All items less food and energy
Commodities
Services

3.6
7.5
4.3
3.5
4.7

5.3
-.4
4.4
3.5
5.0

2.8
-3.9
4.4
2.5
5.0

1.4
-4.9
5.4
4.7
5.9

7.1
4.2
4.3
3.9
4.5

9.9
2.7
4.0
3.1
4.1

.4
.5
.2
.2
.4

.6
-.2
.4
.2
.5

1.0
.3
.3
.3
.4

.6
.9
.2
-.3
.5

.8
-.6
.4
.8
.1

120.2
91.9
124.7
116.9
129.3

3.2
1.3
10.6
3.4
2.3

2.7
4.3
-7.3
4.2
2.8

-1.9
-5.7
-9.6
1.7
-.7

2.7
6.0
-18.5
5.7
3.2

4.6
9.4
4.8
2.4
3.6

5.7
8.8
-4.6
6.6
5.4

.6
.4
2.2
.3
.4

.4
1.2
-3.3
.4
.8

108.6
115.2
58.8
118.9
114.3

4.2
3.5

5.4
7.4

4.3
7.2

4.3
8.2

7.4
6.9

5.3
7.2

2.5
15.2
22.4

15.4
-15.4
8.5

-4.8
-15.2
18.0

17.7
-24.1
15.9

30.5
12.2
-7.0

23.5
-29.0
9.2

PRODUCER PRICES
(1982=100)
7
8
9
10
11

Finished goods
Consumer foods
Consumer energy
Other consumer goods
Capital equipment

12
13

Intermediate materials 3
Excluding energy

14
15
16

Crude materials
Foods
Energy
Other

1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers and reflect a
rental equivalence measure of homeownership after 1982.




.4

.4
1.2 R

.3'
.3
.3'

-1.8r
.3
.4

.5
.4
.0
.9
.1

.1'

.5'
.4'

.6
.7

.4
.4

.4
.6

108.4
116.7

"i.V

1.5
-5.4
1.9

2.2
.1
.9

1.6
-3.1
-.6

111.5
64.9
133.4

r

.5'

2.T
1.1

-i.r

-1.0

.V

3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.

Selected Measures
2.16

GROSS NATIONAL PRODUCT A N D INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1988

1987
Account

1987

1985

Q3

Q4

Q1

Q2

GROSS NATIONAL PRODUCT
4,014.9

4,240.3

4,526.7

4,568.0

4,662.8

4,724.5

4,823.8

2,629.0
372.2
911.2
1,345.6

2,807.5
406.5
943.6
1,457.3

3,012.1
421.9
997.9
1,592.3

3,058.2
441.4
1,006.6
1,610.2

3.076.3
422.0
1.012.4
1,641.9

3.128.1
437.8
1,674.1

3,194.6
449.8
1,036.6
1,708.2

643.1
631.8
442.9
153.2
289.7
188.8

665.9
650.4
433.9
138.5
295.4
216.6

712.9
673.7
446.8
139.5
307.3
226.9

702.8
688.3
462.1
143.0
319.1
226.2

764.9
692.9
464.1
147.7
316.3
228.8

763.4
698.1
471.5
140.1
331.3
226.6

758.1
714.4
487.8
142.3
345.5
226.5

11.3
14.6

15.5
17.4

39.2
40.7

14.5
17.8

72.0
72.8

65.3
49.4

43.7
33.1

14 Net exports of goods and services
15
Exports
16
Imports

-78.0
370.9
448.9

-104.4
378.4
482.8

-123.0
428.0
551.1

-125.2
440.4
565.6

-125.7
459.7
585.4

-112.1
487.8
599.9

-90.4
507.1
597.5

17 Government purchases of goods and services ..
18
Federal
19
State and local

820.8
355.2
465.6

871.2
366.2
505.0

924.7
382.0
542.8

932.2
386.3
546.0

947.3
391.4
555.9

945.2
377.7
567.5

961.6
382.2
579.4

4,003.6
1.641.2
706.5
934.6
1.968.3
405.4

4,224.7
1,697.9
725.3
972.6
2,118.3
424.0

4,487.5
1,792.5
776.3
1,016.3
2,295.7
438.4

4,553.5
1,812.9
792.2
1,020.7
2,314.4
440.6

4,590.7
1,849.4
808.7
1,040.7
2,363.9
449.5

4,659.2
1,879.4
819.3
1,060.1
2,405.2
439.9

4,780.1
1,928.0
849.5
1,078.5
2,451.5
444.3

11.3
6.4
4.9

15.5
4.2
11.3

39.2
26.6
12.6

14.5
2.9
11.6

72.0
50.5
21.6

65.3
26.6
38.6

43.7
17.8
25.9

3,618.7

3,721.7

3,847.0

3,865.3

3,923.0

3,956.1

3,985.2

3,234.0

3,437.1

3,678.7

3.708.0

3,802.0

3,850.8

3,928.8

2,367.5
1,975.2
372.0
1,603.4
392.4
204.8
187.6

2,507.1
2,094.0
393.7
1,700.3
413.1
217.0
196.1

2,683.4
2,248.4
420.1
1,828.3
435.0
227.1
207.9

2,702.8
2,265.3
423.2
1.842.1
437.5
228.2
209.3

2,769.9
2,324.8
429.2
1,895.6
445.1
232.7
212.4

2,816.4
2,358.7
437.1
1,921.6
457.7
243.1
214.6

2,874.0
2.410.0
442.9
1.967.1
464.0
247.5
216.5

255.9
225.6
30.2

286.7
250.3
36.4

312.9
270.0
43.0

306.8
271.5
35.2

326.0

323.9

279.0
47.0

279.2
44.7

328.8
285.3
43.4

1 Total
2
3
4
5

By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services

6 Gross private domestic investment
7
Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures
12
13

Change in business inventories
Nonfarm

By major type of product
20 Final sales, total
21
Goods
22
Durable
23
Nondurable
24
Services
25
Structures
26 Change in business inventories
27
Durable goods
28
Nondurable goods
MEMO

29 Total GNP in 1982 dollars

1.016.2

NATIONAL INCOME

30 Total
31 Compensation of employees
32
Wages and salaries
33
Government and government enterprises . .
34
Other
35
Supplement to wages and salaries
36
Employer contributions for social insurance
37
Other labor income
38 Proprietors'income 1
39
Business and professional
40
Farm 1

9.2

12.4

18.4

18.1

20.5

20.5

19.1

42 Corporate profits'
43
Profits before tax 3
44
Inventory valuation adjustment
45
Capital consumption adjustment

282.3
224.3
-1.7
59.7

298.9
236.4
8.3
54.2

310.4
276.7

316.1
281.9
-18.2

316.2

51.7

322.0
289.4
-19.5
52.1

52.4

-19.4
49.4

326.5
305.9
-27.4
48.0

46 Net interest

319.0

331.9

353.6

358.3

369.5

373.9

380.6

41 Rental income of persons 2

1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




-18.0

286.2

3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).

A51

A52
2.17

Domestic Nonfinancial Statistics • December 1988
PERSONAL INCOME A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1987
Account

1985

1986

1988

1987
Q3

Q4

Q1

Q2

Q3

PERSONAL INCOME AND SAVING

2 Wage and salary disbursements
3
Commodity-producing industries
4
Manufacturing
5
Distributive industries
6
Service industries
7
Government and government enterprises
8 Other labor income
9 Proprietors' income 1
10
Business and professional
11
Farm 1
12 Rental income of persons
14 Personal interest income
15 Transfer payments
16
Old-age survivors, disability, and health insurance benefits . . .
17

3,531.1

3,780.0

3,801.0

3,906.8

3,951.4

4,022.4

4,086.0

1,975.4
608.9
460.9
473.2
521.3
372.0

2,094.0
625.5
473.1
498.9
575.9
393.7

2,248.4
649.8
490.3
531.7
646.8
420.1

2,265.1
652.8
492.6
536.8
652.4
423.0

2,325.1
665.5
501.3
547.3
682.8
429.5

2,358.7
676.0
509.6
558.2
687.4
437.1

2,410.0
689.1
517.4
572.1
705.9
442.9

2,460.0
701.4
526.1
585.7
723.9
449.0

187.6
255.9
225.6
30.2
9.2
78.7
478.0
489.8
253.4

196.1
286.7
250.3

207.9
312.9
270.0
43.0
18.4
88.6
527.0
548.8
282.9

209.3
306.8
271.5
35.2
18.1
89.9
533.0
551.7
284.5

212.4
326.0
279.0
47.0
20.5
91.9
550.0
556.8
286.5

214.6
323.9
279.2
44.7
20.5
93.5
554.2
576.3
298.1

216.5
328.8
285.3
43.4
19.1
95.0
563.7
582.8
300.4

219.5
319.3
290.2
29.0
20.0
97.3
579.3
587.4
303.2

3,325.3

1 Total personal income

LESS: Personal contributions for social insurance

18 EQUALS: Personal income

36.4

12.4
82.8
499.1
521.1
269.3

149.3

161.1

172.0

172.7

175.9

190.2

193.5

196.7

3,325.3

3,531.1

3,780.0

3,801.0

3,906.8

3,951.4

4,022.4

4,086.0

486.6

511.4

570.3

576.2

591.0

575.8

601.0

587.1

20 EQUALS: Disposable personal income

2,838.7

3,019.6

3,209.7

3,224.9

3,315.8

3,375.6

3,421.5

3,498.9

21

LESS: Personal outlays

2,713.3

2,898.0

3,105.5

3,152.3

3,171.8

3,225.7

3,293.6

3,358.6

22 EQUALS: Personal saving

125.4

121.7

104.2

72.6

144.0

149.9

127.8

140.3

15,120.6
9,839.4
10,625.0
4.4

15,401.2
10.160.1
10,929.0
4.0

15,770.0
10,334.3
11,012.0
3.2

15,834.9
10,426.8
10,989.0
2.3

16,031.8
10,346.1
11,145.0
4.3

16,127.6
10,435.4
11,260.0
4.4

16,213.1
10,492.2
11,237.0
3.7

16,256.8
10,552.9
11,335.0
4.0

533.5

537.2

560.4

556.8

603.4

627.0

634.1

n.a.

711.2
127.8
80.1
-27.4

n.a.
140.3
n.a.
-27.4
317.0
191.0

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

Capital consumption

34

681.6
121.7
104.1
8.3

665.3
104.2
81.1
-18.0

642.2
72.6
85.0
-19.5

714.1
144.0
80.5
-18.2

282.4
173.5

297.5
182.5

299.7
184.9

303.7
185.8

309.8
188.5

313.3
189.9

-131.8
-196.9
65.1

-144.4
-205.6
61.2

-104.9
-157.8
52.9

-85.5
-138.3
52.9

-110.7
-160.4
49.7

-99.2
-155.1
55.8

-77.1
-133.3

528.7

Gross private saving
Personal saving
Undistributed corporate profits
Corporate inventory valuation adjustment

665.3
125.4
102.6
-1.7
268.6
168.7

28
29
30
31

726.3
149.9
78.1
-19.4

523.6

552.3

541.7

597.0

612.0

629.0

638.1

643.1
-114.4

665.9
-142.4

712.9
-160.6

702.8
-161.1

764.9
-167.8

763.4
-151.3

758.1
-129.1

764.4
-126.3

-4.8

-13.6

-8.1

-15.1

-6.4

-15.0

-5.1

-5.1

allowances

Government surplus, or deficit ( - ) , national income and
product accounts

38 Gross private domestic
39 Net foreign
40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




SOURCE. Survey of Current Business

56.2

(Department of Commerce).

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
1987
Item credits or debits

1986

1985

1988

1987
Q2

1 Balance on current account
Not seasonally adjusted
2
3
Merchandise trade balance 2
4
Merchandise exports
Merchandise imports
5
6
Military transactions, net
7
Investment income, net
Other service transactions, net
8
9
Remittances, pensions, and other transfers
10 U.S. government grants (excluding military)
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )

Q3

Q4

Ql

Q2"

-41,967
-47,330
-39,665
64,902
-104,567
-851
1,067
87
-855
-2,125

-33,523
-31,803
-41,192
68,013
-109,205
-1,261
12,539
479
-828
-3,545

-36,938
-32,179
-35,184
75,300
-110,484
-1,033
1,159
1,241
-882
-2,239

-33,336
-34,228
-29,937
79,665
-109,602
-865
-1,747
2,120
-787
-2,120

252

1,012

-814

-828

1,503
0
155
446
901

39
0
180
69
-210

-115,102

-138,827

-153,964

-122,148
215,935
-338,083
-3,431
25,936
-449
-3,786
-11,223

-144,547
223,969
-368,516
-4,372
23,143
2,257
-3,571
-11,738

-160,280
249,570
-409,850
-2,369
20,374
1,755
-3,434
-10,011

-40,852
-41,799
-39,552
59,864
-99,416
-179
1,692
13
-884
-2,241

-2,829

-2,000

1,162

-170

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

-3,858
0
-897
908
-3,869

312
0
-246
1,500
-942

9,149
0
-509
2,070
7,588

3,419
0
-171
335
3,255

32
0
-210
407
-165

3,741
0
-205
722
3,225

17 Change in U.S. private assets abroad (increase, - )
18
Bank-reported claims 3
19 Nonbank-reported claims
20
U.S. purchase of foreign securities, net
21
U.S. direct investments abroad, net

-25,949
-1,323
923
-7,481
-18,068

-96,303
-59,975
-4,220
-4,297
-27,811

-86,298
-40,531
3,145
-4,456
-44,456

-26,127
-22,422
2,603
-88
-6,220

-25,576
-16,519
-215
-972
-7,870

-43,645
-23,460
1,248
-1,757
-19,676

5,903
17,108
-315
-4,467
-6,423

-12,497
-13,999

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 3
27
Other foreign official assets

-1,196
-838
-301
767
645
-1,469

35,507
34,364
-1,214
2,054
1,187
-884

44,968
43,361
1,570
-2,824
3,901
-1,040

10,332
11,083
256
-1,309
615
-313

611
842
714
-287
-34
-624

20,047
19,243
662
108
-223
257

24,670
27,701
-121
-123
-1,954
-833

5,832
5,793
192
-570
834
-417

28 Change in foreign private assets in the United States
(increase, +)
U.S. bank-reported liabilities3
U.S. nonbank-reported liabilities
Foreign private purchases of U.S. Treasury securities, net
Foreign purchases of other U.S. securities, net
Foreign direct investments in the United States, net

131,096
41,045
-366
20,433
50,962
19,022

185,746
79,783
-2,906
3,809
70,969
34,091

166,521
87,778
2,150
-7,596
42,213
41,976

40,327
17,961
1,570
-2,431
15,998
7,229

71,047
46,153
-116
-2,835
12,819
15,026

36,025
29,764
-1,000
496
-4,977
11,742

1,395
-17,233
2,015
6,887
2,379
7,347

56,507
28,839

0
17,839

0
15,566

0
18,461

0
13,071
-2,615

0
-4,399
-4,658

0
16,342
3,138

0
4,282
3,747

0
-15,717
-3,456

17,839

15,566

18,461

15,686

259

13,204

535

-12,261

29
30
31
32
33

34 Allocation of SDRs
35 Discrepancy
36
Owing to seasonal adjustments
37
Statistical discrepancy in recorded data before seasonal
adjustment

1,610
-108

4,473
9,823
13,372

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

312

9,149

3,419

32

3,741

1,503

39

— 1,963

33,453

47,792

11,641

898

19,939

24,793

6,402

-6,709

-9,327

-9,956

-2,681

-1,723

-2,750

-1,375

-1,782

46

101

58

26

13

12

45

10

-3,858

1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and
38-41.
2. Data are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing. Military
exports are excluded from merchandise data and are included in line 6.
3. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.




4. Primarily associated with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
NOTE. Data are from Bureau of Economic Analysis, Survey of Current Business
(Department of Commerce).

A54
3.11

International Statistics • December 1988
U.S. FOREIGN TRADE1
Millions of dollars; monthly data are not seasonally adjusted.
1988
Item

1985

1986

1987
Feb.

1

Mar.

Apr.

May

June

July r

Aug.

EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments, f.a.s. value

218,815

227,159

254,122

24,139

29,106

26,335

28,143

26,839

25,098

26,588

2
3

GENERAL IMPORTS including
merchandise for immediate
consumption plus entries into
bonded warehouses
C.I.F. value
Customs value

352,463
345,276

382,295
365,438

424,442
406,241

37,133
35,569

38,633
37,030

36,528
35,027

37,657
36,147

40,158
38,590

37,084
35,583

39,329
37,708

4
5

Trade balance
C.I.F. value
Customs value

-133,648
-132,129

-155,137
-138,279

-170,320
-152,119

-12,994
-11,430

-9,528
-7,924

-10,193
-8,692

-9,514
-8,004

-13,319
-11,751

-11,986
-10,485

-12,741
-11,121

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 sire excluded and shown separately as indicated above.
As of Jan. 1, 1987 census data are released 45 days after the end of the month; the
previous month is revised to reflect late documents. Total exports and the trade
balance reflect adjustments for undocumented exports to Canada.
SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade"
(Department of Commerce, Bureau of the Census).

3.12 U.S. RESERVE ASSETS
Millions of dollars, end of period
1988
Type

1985

1986

1987
Mar.

Apr.

May

June

July

Aug.

Sept."

45,798

43,186

42,730

41,949

41,028

43,876

47,778

47,788

1

Total

43,186

48,511

2

Gold stock, including Exchange
Stabilization Fund 1

11,090

11,064

11,078

11,063

11,063

11,063

11,063

11,063

11,061

11,062

3

Special drawing rights2'3

7,293

8,395

10,283

9,899

9,589

9,543

9,180

8,984

9,058

9,074

4

Reserve position in International Monetary Fund

11,947

11,730

11,349

10,645

10,803

10,431

9,992

9,773

9,642

9,637

5

Foreign currencies 4

12,856

17,322

13,088

11,579

11,275

10,912

10,793

14,056

18,017

18,015

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 holdiings and reserve position
in the IMF also are valued on this basis beginning July 1974.

3.13

3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus transactions in SDRs.
4. Valued at current market exchange rates.

FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1988
Assets

1985

1986

1987
Mar.

1 Deposits
Assets held in custody
2 U.S. Treasury securities
3 Earmarked gold 3

May

June

July

Aug.

Sept. p

480

287

244

534

215

297

381

269

230

338

121,004
14,245

155,835
14,048

195,126
13,919

222,407
13,773

224,725
13,719

226,341
13,654

223,127
13,662

223,296
13,666

221,715
13,658

221,119
13,653

1. Excludes deposits and U.S. Treasury securities held for international and
regional organizations.
2. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies.




Apr.

3. Earmarked gold and the gold stock are valued at $42.22 per fine troy ounce,
Earmarked gold is gold held for foreign and international accounts and is not
included in the gold stock of the United States.

Summary Statistics
3.14 FOREIGN BRANCHES OF U.S. BANKS

A55

Balance Sheet Data1

Millions of dollars, end of period
1988
Asset account
Feb.

Mar.

Apr.

May

June

July

Aug."

All foreign countries
1 Total, all currencies
2 Claims on United States
Parent bank
4
Other banks in United States
5 Nonbanks
6 Claims on foreigners
Other branches of parent bank
7
8
Banks
9
Public borrowers
10 Nonbank foreigners

458,012

456,628

518,618'

495,003

502,398

488,939

492,844

487,677

488,283

487,895

119,706
87,201
13,057
19,448
315,676
91,399
102,960
23,478
97,839

114,563
83,492
13,685
17,386
312,955
96,281
105,237
23,706
87,731

138,034
105,845
16,416
15,773
342,520'
122,155
108,859'
21,832'
89,674'

131,032
94,348
15,028
21,656
326,633
111,671
105,584
21,331
88,047

135,504
99,109
14,663
21,732
328,163
108,972
106,771
21,748
90,672

139,176
102,957
13,332
22,887
314,348
103,090
101,236
20,827
89,195

141,789
104,299
14,624
22,866
315,303
102,931
103,429
20,991
87,952

140,932
104,405
14,424
22,103
311,321
106,722
100,686
20,438
83,475

147,662
109,929
15,954
21,779
305,556
103,638
99,663
19,276
82,979

157,021
117,525
16,176
23,320
295,254
98,299
98,996
18,709
79,250

22,630

29,110

38,064

37,338

38,731

35,415

35,752

35,424

35,065

35,620

12 Total payable in U.S. dollars

336,520

317,487

350,107'

330,726

333,874

327,736

334,112

334,990'

336,233

342,906

n Claims on United States
14 Parent bank
15 Other banks in United States
16 Nonbanks
17 Claims on foreigners
18 Other branches of parent bank
19 Banks
20
Public borrowers
21
Nonbank foreigners

116,638
85,971
12,454
18,213
210,129
72,727
71,868
17,260
48,274

110,620
82,082
12,830
15,708
195,063
72,197
66,421
16,708
39,737

132,023
103,251
14,657
14,115
202,428'
88,284
63,707'
14,730
35,707

124,806
91,271
13,906
19,629
190,902
83,063
58,161
14,645
35,033

128,935
95,844
13,346
19,745
190,593
81,692
58,109
14,853
35,939

133,289
100,320
12,318
20,651
179,722
75,654
54,588
14,407
35,073

136,077
101,578
13,599
20,900
182,981
76,136
57,102
14,342
35,401

135,348
101,422
13,661
20,265
183,568'
79,774
55,234
13,851'
34,709

141,415
106,792
14,434
20,189
179,076
78,063
54,189
13,247
33,577

151,581
114,943
14,901
21,737
174,433
73,792
54,847
12,933
32,861

9,753

11,804

15,656

15,018

14,346

14,725

15,054

16,074

15,742

16,892

11 Other assets

22 Other assets

United Kingdom
23 Total, all currencies

148,599

140,917

158,695

157,634

155,657

152,592

156,184

151,835

151,017

149,646

24 Claims on United States
Parent bank
25
26
Other banks in United States
27
Nonbanks
28 Claims on foreigners
29 Other branches of parent bank
30
Banks
31
Public borrowers
32
Nonbank foreigners

33,157
26,970
1,106
5,081
110,217
31,576
39,250
5,644
33,747

24,599
19,085
1,612
3,902
109,508
33,422
39,468
4,990
31,628

32,518
27,350
1,259
3,909
115,700
39,903
36,735
4,752
34,310

32,869
27,484
1,527
3,858
115,489
38,077
38,654
4,613
34,145

29,581
24,580
1,191
3,810
116,975
34,278
40,247
5,312
37,138

31,618
26,155
1,013
4,450
112,261
33,019
38,790
4,914
35,538

32,832
27,506
1,360
3,966
114,452
33,849
39,883
4,987
35,733

33,852
28,535
1,322
3,995
107,856
32,446
37,108
4,742
33,560

35,708
30,615
1,064
4,029
105,594
30,228
37,805
4,665
32,896

36,307
30,767
1,197
4,343
103,527
29,656
38,259
4,543
31,069

33 Other assets
34 Total payable in U.S. dollars
35 Claims on United States
36
Parent bank
37
Other banks in United States
38
Nonbanks
39 Claims on foreigners
40
Other branches of parent bank
41
Banks
42
Public borrowers
43
Nonbank foreigners
44 Other assets

5,225

6,810

10,477

9,276

9,101

8,713

8,900

10,127

9,715

9,812

108,626

95,028

100,574

101,642

95,972

93,214

97,188

95,326

94,492

96,767

32,092
26,568
1,005
4,519
73,475
26,011
26,139
3,999
17,326

23,193
18,526
1,475
3,192
68,138
26,361
23,251
3,677
14,849

30,439
26,304
1,044
3,091
64,560
28,635
19,188
3,313
13,424

30,971
26,565
1,273
3,133
66,313
29,813
19,516
3,347
13,637

27,388
23,285
1,025
3,078
64,247
26,812
19,656
3,864
13,915

29,555
25,137
781
3,637
59,434
24,867
18,065
3,412
13,090

30,736
26,608
1,068
3,060
62,018
25,448
19,555
3,252
13,763

31,855
27,672
1,069
3,114
57,969
23,843
17,477
3,188
13,461

33,795
29,706
870
3,219
55,832
22,549
18,025
3,133
12,125

34,535
29,837
1,039
3,659
57,037
22,465
19,165
3,105
12,302

3,059

3,697

5,575

4,358

4,337

4,225

4,434

5,502

4,865

5,195

Bahamas and Caymans
45 Total, all currencies
46 Claims on United States
Parent bank
47
48
Other banks in United States
49
Nonbanks
50 Claims on foreigners
51
Other branches of parent bank
52, Banks
53 Public borrowers
54
Nonbank foreigners
55 Other assets
56 Total payable in U.S. dollars

142,055

142,592

160,321

143,630

153,254

152,930

156,353

159,718

160,516

165,771

74,864
50,553
11,204
13,107
63,882
19,042
28,192
6,458
10,190

78,048
54,575
11,156
12,317
60,005
17,296
27,476
7,051
8,182

85,318
60,048
14,277
10,993
70,162
21,277
33,751
7,428
7,706

78,035
48,402
12,682
16,951
60,091
18,486
27,667
7,063
6,875

85,837
56,330
12,476
17,031
61,962
19,368
28,647
6,891
7,056

88,283
59,240
11,470
17,573
58,818
17,790
26,700
6,849
7,479

90,896
60,419
12,489
17,988
59,374
18,463
27,019
6,955
6,937

88,116
58,579
12,236
17,301
65,855
24,745
27,650
6,835
6,625

92,308
61,397
13,863
17,048
62,508
22,797
26,120
6,457
7,134

99,090
67,034
13,907
18,149
60,822
20,789
26,866
6,185
6,982

3,309

4,539

4,841

5,504

5,455

5,829

6,083

5,747

5,700

5,859

136,794

136,813

151,434

135,916

145,050

145,398

148,545

152,219

152,685

157,975

1. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches




from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.

A56

International Statistics • December 1988

3.14—Continued
1988
Liability account

1985

1986

1987
Feb.

Apr.

May

June

July

All foreign countries
57 Total, all currencies

458,012

456,628

518,618'

495,003

502,398

488,939

492,844

487,677

488,283

487,895

58 Negotiable CDs
59 To United States
60
Parent bank
61
Other banks in United States
62
Nonbanks

34,607
156,281
84,657
16,894
54,730

31,629
152,465
83,394
15,646
53,425

30,929
161,390
87,606
20,559
53,225

31,158
149,402
85,092'
14,237
50,073'

31,854
157,023'
91,578'
14,806
50,639'

31,585
155,341'
85,539'
16,246
53,556'

32,175
161,964'
86,897'
15,364'
59,703'

29,485
156,235
87,256'
14,625
54,354'

30,159
159,024
84,196
15,310
59,518

31,203
164,416
88,819
16,667
58,930

63 To foreigners
64
Other branches of parent bank
65
Banks
66
Official institutions
67
Nonbank foreigners
68 Other liabilities

245,939
89,529
76,814
19,520
60,076
21,185

253,775
95,146
77,809
17,835
62,985
18,759

304,803'
124,601
87,274'
19,564
73,364
21,496'

293,360
111,949
88,400
20,373
72,638
21,083

290,104'
109,071
88,257
18,608
74,168'
23,417

281,202'
105,148
85,097
18,006
72,951'
20,811

277,144'
104,667
82,499
17,700
72,278'
21,561

280,998
110,418
82,470
17,159
70,951
20,959

277,761
107,084
83,098
16,528
71,051
21,339

270,663
100,520
80,608
17,232
72,303
21,613

69 Total payable in U.S. dollars

353,712

336,406

361,438

341,536

344,395

337,122

341,729

341,411

341,539

346,197

70 Negotiable CDs
71 To United States
72
Parent bank
73
Other banks in United States
74
Nonbanks

31,063
150,905
81,631
16,264
53,010

28,466
144,483
79,305
14,609
50,569

26,768
148,442
81,783
19,155
47,504

26,386
138,737
79,313'
12,918
46,506'

26,869
144,983
84,751'
13,501
46,731'

26,596
144,783
79,857'
15,035
49,891'

27,233
149,571'
80,331'
13,999
55,241'

25,015
144,394'
80,752'
13,186
50,456'

24,870
147,551
77,503
14,011
56,037

26,128
152,782
81,710
15,464
55,608

75 To foreigners
76
Other branches of parent bank
77
Banks
78
Official institutions
79
Nonbank foreigners
80 Other liabilities

163,583
71,078
37,365
14,359
40,781
8,161

156,806
71,181
33,850
12,371
39,404
6,651

177,711
90,469
35,065
12,409
39,768
8,517

167,623
82,996
32,278
12,071
40,278
8,790

163,275
81,073
30,688
10,489
41,025
9,268

156,848
76,708
29,924
10,539
39,677
8,895

155,524'
76,920
28,712
10,028
39,864'
9,401

162,126'
83,482
28,990
9,571
40,083'
9,876

158,901
81,144
28,495
9,254
40,008
10,217

156,333
74,9%
30,041
9,938
41,358
10,954

United Kingdom
81 Total, all currencies

148,599

140,917

158,695

157,634

155,657

152,592

156,184

151,835

151,017

149,646

82 Negotiable CDs
83 To United States
84
Parent bank
85
Other banks in United States ,
86
Nonbanks

31,260
29,422
19,330
2,974
7,118

27,781
24,657
14,469
2,649
7,539

26,988
23,470
13,223
1,740
8,507

26,786
26,382
15,527
1,615
9,240

27,279
22,725
14,506
1,768
6,451

27,090
23,868
14,904
1,508
7,456

27,659
27,145
15,518
2,408
9,219

25,390
25,120
15,996
1,791
7,333

25,750
26,859
16,844
2,051
7,964

26,998
25,013
15,100
1,878
8,035

87 To foreigners
88
Other branches of parent bank
89
Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities

78,525
23,389
28,581
9,676
16,879
9,392

79,498
25,036
30,877
6,836
16,749
8,981

98,689
33,078
34,290
11,015
20,306
9,548

94,235
30,350
33,520
11,048
19,317
10,231

95,049
30,211
33,316
9,624
21,898
10,604

92,219
27,383
32,970
10,181
21,685
9,415

91,995
28,743
31,995
9,672
21,585
9,385

91,691
28,967
33,125
8,893
20,706
9,634

88,489
26,948
32,763
9,034
19,744
9,919

87,504
25,570
31,829
9,982
20,123
10,131

112,697

99,707

102,550

105,162

98,982

96,532

99,378

97,555

96,908

97,938

29,337
27,756
18,956
2,826
5,974

26,169
22,075
14,021
2,325
5,729

24,926
17,752
12,026
1,512
4,214

24,281
23,019
14,626
1,401
6,992

24,716
19,116
13,622
1,556
3,938

24,392
20,310
13,947
1,306
5,057

24,994
22,405
14,134
2,184
6,087

22,960
20,889
14,712
1,512
4,665

22,846
23,105
15,729
1,817
5,559

24,229
21,005
13,745
1,655
5,605

51,980
18,493
14,344
7,661
11,482
3,624

48,138
17,951
15,203
4,934
10,050
3,325

55,919
22,334
15,580
7,530
10,475
3,953

53,444
21,753
14,401
7,045
10,245
4,418

50,590
21,292
13,106
5,181
11,011
4,560

47,589
18,060
12,889
5,918
10,722
4,241

47,969
18,902
12,860
5,470
10,737
4,010

48,777
20,303
12,957
4,700
10,817
4,929

46,083
18,539
12,240
5,036
10,268
4,874

47,227
17,550
13,501
5,781
10,395
5,477

93 Total payable in U.S. dollars
94 Negotiable CDs
95 To United States
96
Parent bank
97
Other banks in United States .
98
Nonbanks
99 To foreigners
100
Other branches of parent bank
101
Banks
102 Official institutions
103
Nonbank foreigners
104 Other liabilities

Bahamas and Caymans
105 Total, all currencies

142,055

142,592

160,321

153,254

152,930

156,353

159,718

160,516

165,771

106 Negotiable CDs
107 To United States
108 Parent bank
109 Other banks in United States .
110 Nonbanks

610
104,556
45,554
12,778
46,224

847
106,081
49,481
11,715
44,885

885
113,950
53,239
17,224
43,487

940
99,821
48,926'
11,455
39,44c

1,069
110,451
55,931'
11,829
42,691'

1,038
109,199
50,576'
13,621
45,002'

1,096
112,605
51,745'
11,659'
49,201'

941
109,424
52,221'
11,451
45,752'

940
112,540
49,896
12,069
50,575

731
117,765
54,174
13,723
49,868

111 To foreigners
112 Other branches of parent bank
113
Banks
114
Official institutions
115
Nonbank foreigners
116 Other liabilities

35,053
14,075
10,669
1,776
8,533
1,836

34,400
12,631
8,617
2,719
10,433
1,264

43,815
19,185
10,769
1,504
12,357
1,671

41,234
18,604
9,825
1,179
11,626
1,635

40,038
17,260
9,404
1,873
11,501
1,696

40,953
19,420
9,162
1,164
11,207
1,740

40,369
18,909
9,080
1,053
11,327
2,283

47,361
24,755
9,779
1,850
10,977
1,992

44,993
22,288
10,155
1,015
11,535
2,043

45,062
21,221
9,607
1,099
13,135
2,213

117 Total payable in U.S. dollars . . . .

138,322

138,774

152,927

136,636

145,366

146,134

148,923

151,684

152,235

157,512




143,630

Summary Statistics

A57

3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1988
Item

1987

1986

Feb.
1 Total1
2
3
4
5
6
7
8
9
10
11
12

Mar.'

Apr.

May

June'

July

Aug."

211,834

By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries 6

259,517

276,293'

284,324

286,529'

294,729'

290,842

291,135

289,933

27,920
75,650

31,838
88,829

32,148'
93,407

29,892
95,624

29,683
94,974

31,460
96,604

30,761
95,299

31,961
97,015

32,483
%,698

91,368
1,300
15,5%

122,432
300
16,123

134,719
300
15,1W

142,854
792
15,162'

145,929'
795
15,148'

150,991'
499
15,175'

149,333
502
14,947

146,971
506
14,682

145,521
509
14,722

88,629
2,004
8,417
105,868
1,503
5,412

By type
Liabilities reported by banks in the United States'1
U.S. Treasury bills and certificates
U.S. Treasury bonds and notes
Marketable
Nonmarketable
U.S. securities other than U.S. Treasury securities

124,620
4,%1
8,328
116,098
1,402
4,147

127,641'
6,839
8,2%
127,338'
1,495
4,682

129,411
7,954
8,660
131,458
1,512
4,839

129,739'
8,314
8,520
132,050'
1,417
5,993

131,406'
9,372
9,145
135,120'
1,418
7,773

126,772
10,773
9,407
134,285
1,266
7,837

125,085
10,725
9,818
135,657
1,179
8,162

122,%2
9,981
11,336
136,165
1,1%
7,782

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
1987'
1984

Item

1985

1988'

1986
Sept.

1 Banks' own liabilities
2 Banks' own claims
3
Deposits
4
Other claims
5 Claims of banks' domestic customers 2

8,586
11,984
4,998
6,986
569

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




15,368
16,294
8,437
7,857
580

29,702
26,180
14,129
12,052
2,507

Dec.

Mar.

June

46,147
41,394
14,647
26,746
1,067

55,075
50,663
18,253
32,410
551

55,457
51,428
17,614
33,814
810

55,399
50,098
16,723
33,375
1,004

States that represent claims on foreigners held by reporting banks for the accounts
of the domestic customers.

A58
3.17

International Statistics • December 1988
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars

Reported by Banks in the United States1

Millions of dollars, end of period
1988
Holder and type of liability

1985

1986

1987'
Feb.

Mar.'

Apr.

May

June'

July

Aug."

1 All foreigners

435,726

540,996

618,978

605,329r

605,615

611,031'

629,139r

637,396

647,033

658,200

2 Banks' own liabilities
3 Demand deposits
4 Time deposits
5 Other.
6 Own foreign offices

341,070
21,107
117,278
29,305
173,381

406,485
23,789
130,891
42,705
209,100

470,056
22,383
148,444
51,607
247,621

446,466'
21,129
140,119'
52,941'
232,277'

443,680
21,901
137,729
47,040
237,011

449,324'
20,33C
134,320'
46,018'
248,655'

465,665'
22,18K
138,255'
48,489'
256,741'

476,117
22,990
141,553
47,658
263,916

482,536
21,983
142,780
51,116
266,657

494,049
20,331
147,846
50,384
275,488

94,656
69,133

134,511
90,398

148,923
101,743

158,864'
107,087

161,935
109,233

161,707'
107,881

163,474
108,803

161,279
108,614

164,497
109,952

164,151
108,858

17,964
7,558

15,417
28,696

16,791
30,388

15,677'
36,099'

16,121
36,581

16,017
37,81C

16,595
38,075

16,626
36,039

16,165
38,381

16,140
39,153

11 Nonmonetary international and regional
organizations

5,821

5,807

4,464

8,782r

6,033

4,575

6,889

7,879

7,009

4,693

12 Banks' own liabilities
13 Demand deposits
14 Time deposits
15 Other 3 .

2,621
85
2,067
469

3,958
199
2,065
1,693

2,702
124
1,538
1,040

6,771'
74
2,481
4,216'

4,031
134
2,061
1,836

2,412
67
335
2,010

4,898
84
1,981
2,833

5,142
84
1,873
3,185

4,831
92
1,874
2,865

2,869
85
1,499
1,285

16 Banks' custody liabilities5
17 U.S. Treasury bills and certificates6
18 Other negotiable and readily transferable
instruments
19 Other

3,200
1,736

1,849
259

1,761
265

2,011
415

2,002
635

2,163
587

1,991
132

2,737
745

2,179
286

1,824
43

1,464
0

1,590
0

1,497
0

1,521
75

1,351
16

1,564
11

1,852
7

1,989
3

1,861
32

1,769
12

128,065

7 Banks' custody liabilities5
8
U.S. Treasury bills and certificates 6
9 Other negotiable and readily transferable
instruments
10 Other

20 Official institutions9

79,985

103,569

120,667

125,554'

125,516

124,657

126,060

128,975

129,181

21 Banks' own liabilities
22 Demand deposits
23 Time deposits
24 O t h e r .

20,835
2,077
10,949
7,809

25,427
2,267
10,497
12,663

28,703
1,757
12,843
14,103

29,234
1,861
11,654
15,719

26,915
2,021
11,789
13,105

26,623
1,498'
11,753
13,372'

28,451
1,882'
12,860
13,709'

27,882
1,834
11,864
14,184

28,376
1,696
11,536
15,144

28,959
1,405
12,545
15,009

25 Banks' custody liabilities5
26 U.S. Treasury bills and certificates6
27 Other negotiable and readily transferable
instruments
28 Other

59,150
53,252

78,142
75,650

91,965
88,829

96,321'
93,407

98,602
95,624

98,033
94,974

99,613
96,604

98,178
95,299

100,599
97,015

100,222
96,698

5,824
75

2,347
145

2,990
146

2,619'
295

2,750
228

2,939
120

2,775
234

2,672
207

3,368
217

3,240
284

r

10

29 Banks

275,589

351,745

414,181

390,708

394,040

401,743'

413,46c

423,396

428,175

439,906

30 Banks' own liabilities
31 Unaffiliated foreign banks
32
Demand deposits
33
Time 3
deposits
34
Other
35 Own foreign offices4

252,723
79,341
10,271
49,510
19,561
173,381

310,166
101,066
10,303
64,232
26,531
209,100

371,651
124,030
10,898
79,787
33,345
247,621

344,129'
111,852'
9,759
71,65c
30,443'
232,277'

346,742
109,732
10,012
69,964
29,755
237,011

353,971
105,315'
9,153'
68,098'
28,065'
248,655'

365,512'
108,771'
10,260
69,616
28,895'
256,741'

375,093
111,177
10,898
72,612
27,668
263,916

379,369
112,711
10,217
73,206
29,289
266,657

390,666
115,177
9,274
75,789
30,114
275,488

22,866
9,832

41,579
9,984

42,530
9,134

46,579'
9,526

47,298
9,597

47,772'
8,889

47,948
8,872

48,303
9,212

48,806
9,346

49,240
9,051

6,040
6,994

5,165
26,431

5,392
28,004

4,436
32,617'

4,627
33,074

4,637
34,245'

4,341
34,735

4,725
34,365

4,625
34,835

4,547
35,642

36 Banks' custody liabilities5
37 U.S. Treasury bills and certificates6
38 Other negotiable and readily transferable
instruments
39 Other
40 Other foreigners

74,331

79,875

79,666

80,285

80,026

80,056'

80,726'

80,061

82,874

84,421

41 Banks' own liabilities
42 Demand deposits
43 Time deposits
44 Other 3 .

64,892
8,673
54,752
1,467

66,934
11,019
54,097
1,818

67,000
9,604
54,277
3,119

66,332
9,435
54,334
2,563

65,993
9,734
53,915
2,344

66,318'
9,612
54,134'
2,571'

66,804'
9,955
53,798'
3,051'

67,999
10,173
55,204
2,622

69,961
9,979
56,163
3,819

71,556
9,566
58,013
3,976

9,439
4,314

12,941
4,506

12,666
3,515

13,953
3,740

14,034
3,378

13,739
3,430

13,922
3,196

12,062
3,358

12,913
3,305

12,865
3,066

4,636
489

6,315
2,120

6,914
2,238

7,102
3,112

7,393
3,263

6,876
3,433

7,628
3,099

7,241
1,464

6,311
3,297

6,583
3,215

9,845

7,496

7,314

7,370

7,325

7,480

8,261

7,711

6,975

7,064

45 Banks' custody liabilities5
46 U.S. Treasury bills and certificates6
47 Other negotiable and readily transferable
instruments
48 Other
49 MEMO: Negotiable time certificates of deposit in
custody for foreigners

1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
2. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. U.S. banks: includes amounts due to own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due to head office or parent foreign bank, and
foreign branches, agencies, or wholly owned subsidiaries of head office or parent
foreign bank.




5. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.
6. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
8. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks. Data exclude "holdings of
dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for
International Settlements.
10. Excludes central banks, which are included in "Official institutions."

Nonbank-Reported

Data

3.17—Continued
1988
Area and country

1985

1986

1987
Aug."

Feb.
435,726

1
2 Foreign countries
3 Europe
Austria
4
5 Belgium-Luxembourg
Denmark
6
7
Finland
France
8
9
Germany
10 Greece
11 Italy
Netherlands
1?
13 Norway
14 Portugal
15
Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
Yugoslavia
20
7,1 Other Western Europe 1
7?
U.S.S.R
,
Other Eastern Europe 2
23

Mar.

Apr.

May

June

July

605,329'

605,615'

611,031'

629,139'

637,396'

647,033

658,200

540,996

618,978'

429,905

535,189

614,514

r

596,547'

599,582'

606,456'

622,250'

629,517'

640,024

653,507

164,114
693
5,243
513
496
15,541
4,835
666
9,667
4,212
948
652
2,114
1,422
29,020
429
76,728
673
9,635
105
523

180,556
1,181
6,729
482
580
22,862
5,762
700
10,875
5,600
735
699
2,407
884
30,534
454
85,334
630
3,326
80
702

234,641r
920
9,347
760
377
29,835r
7,022'
689
12,073
5,014
1,362
801
2,621
1,379
33,766r
703
116,852''
710
9,798
32
582

226,632'
964
9,832
659
369
28,848'
8,870'
639
11,001
5,302
828
780
2,433
1,719
31,991'
541
112,332'
557
8,367'
49
549

213,051'
958
8,804
930
405
28,424'
6,609'
656
10,075'
5,399
917
874'
2,608'
1,836
31,739'
616
101,621'
550
9,341'
66
623

218,515'
1,162'
9,629
1,034
504
27,015'
6,878'
656
10,040
5,154
1,101
917
2,415
1,692
30,523
518
109,547
566
8,473
44
648'

227,867
1,090
9,893
1,164
478
28,193'
6,487'
675
9,285
5,757
1,240
910
2,839
2,280
31,293
628
115,439
586
9,038
136
456'

227,626'
941
10,363
1,364
426
26,975'
5,105'
653
10,695
5,351
1,078
897
4,168
1,522
31,226'
570'
115,521'
690
9,230'
239'
611'

224,175
1,407
9,494
1,474
550
26,002
5,203
620
9,361
5,560
1,330
859
5,011
1,936
30,451
537
114,905
614
8,125
81
657

232,630
1,246
10,050
2,078
417
24,208
6,190
694
9,766
5,648
900
848
5,566
2,011
29,513
709
122,608
629
8,771
100
679

17,427

26,345

30,095'

25,967

27,350'

27,011'

27,890'

30,051

29,969

28,138

167,856
6,032
57,657
2,765
5,373
42,674
2,049
3,104
11
1,239
1,071
122
14,060
4,875
7,514
1,167
1,552
11,922
4,668

210,318
4,757
73,619
2,922
4,325
72,263
2,054
4,285
7
1,236
1,123
136
13,745
4,970
6,886
1,163
1,537
10,171
5,119

220,399'
5,006
74,676'
2,344r
4,005'
81,612'
2,210
4,204'
12
1,082
1,082
160
14,480
4,975'
7,414
1,275
1,582'
9,048
5,234

212,530'
5,092
64,979'
2,021
3,747
82,409'
2,361
3,897
9
1,133
1,098
148
15,186
5,231
6,983
1,328
1,753
9,729
5,426

220,707'
5,101
68,966'
2,214
4,074
88,214'
2,314
3,833
8
1,169
1,182
208
15,784'
5,207
4,306
1,364
1,763
9,411
5,591

225,708'
5,307
69,975'
2,402
3,992
92,534'
2,251
3,843
13
1,174
1,209
209
15,347
5,345
4,059
1,424
1,745'
9,564
5,313'

229,829'
5,219
73,990
2,927
4,122'
91,601
2,184
4,395
9
1,206
1,191
152
15,866
5,348
4,005
1,423
1,717'
9,255
5,219'

232,760'
5,876
74,034
2,077
4,205'
94,311'
2,378
4,502
10
1,212
1,209
156
15,801
5,338
4,171'
1,438
1,882'
8,950
5,209'

242,266
6,054
75,843
2,413
4,489
100,956
2,323
4,441
9
1,216
1,183
154
16,336
4,798
4,251
1,513
1,828
9,116
5,344

246,526
6,775
78,783
2,463
4,694
99,560
2,478
4,403
8
1,224
1,182
149
17,260
5,011
4,262
1,540
1,889
9,330
5,514

72,280

108,831

121,364'

122,945'

129,237'

125,653'

125,750'

128,10C

133,310

136,299

1,607
7,786
8,067
712
1,466
1,601
23,077
1,665
1,140
1,358
14,523
9,276

1,476
18,902
9,393
674
1,547
1,892
47,410
1,141
1,866
1,119
12,352
11,058

1,162
21,503

582
1,404'
1,292
54,398'
1,637
1,085
1,345
13,988'
12,788

1,352
23,884
10,010
879
1,583
1,333
56,326'
1,502
1,009
1,354
12,400'
11,311

1,562
24,005
10,015'
659
1,547
1,400
60,349'
1,546'
1,095
1,189
12,727'
13,142'

1,814
23,982
9,635'
675
1,063
1,292
58,576'
1,574
1,015
1,181
12,639'
12,207'

1,921
23,874
10,214
619
1,036
1,190
58,151'
1,476
975
1,448
12,413
12,434

1,725
23,072
9,255
942
1,075
1,334
60,916'
1,572'
954
1,099
12,089'
14,066'

1,564
24,023
9,958
858
1,036
1,244
62,830
1,459
1,085
1,650
14,298
13,305

1,757
23,422
10,417
850
1,255
1,194
65,001
1,720
1,001
1,422
12,788
15,472

4,883
1,363
163
388
163
1,494
1,312

4,021
706
92
270
74
1,519
1,360

3,945
1,151
194
202
67
1,014
1,316

3,756
1,119
69
194
86
1,047
1,241

4,034
1,099
75
387
81
1,062
1,330

3,878
1,218
68
195
82
1,008
1,307

4,055
1,1%
65
267
63
1,090
1,373

4,023'
1,187'
73
245
60
1,111
1,348'

3,837
1,039
80
200
63
1,052
1,403

3,846
%9
70
204
67
1,039
1,498

64 Other countries
65
Australia
66
All other

3,347
2,779
568

5,118
4,196
922

4,070
3,327
744

4,717
3,814
903

5,202'
4,154
1,048

5,689
4,885
804

6,859
5,943
916

6,957
6,017
939'

6,467
5,639
828

6,068
5,170
898

67 Nonmonetary international and regional organizations
International 5
68
69 Latin American regional
70
Other regional

5,821
4,806
894
121

5,807
4,620
1,033
154

4,464'
2,83C
1,272
362

8,782'
6,742'
1,505
536

6,033
4,330
1,305
397

4,575
2,691
1,528
356

6,889
4,955
1,727
207

7,879
5,925
1,769
185

7,009
5,078
1,651
280

4,693
2,923
1,614
156

24 Canada
75 Latin America and Caribbean
Argentina
76
Bahamas
77
Bermuda
78
79
Brazil
British West Indies
30
31
Chile
37
Colombia
33
Cuba
34
Ecuador
35
Guatemala
36
37
Mexico
38 Netherlands Antilles
39 Panama
40
Peru
Uruguay
41
Venezuela
47
Other
43
44
45
46
47
48
49
50
51
5?
53
54
55
56
57
58
59
60
61
67,
63

China
Mainland
Taiwan
Hong Kong
Indonesia
Israel
Korea
Philippines
Thailand
Middle-East oil-exporting countries
Other
Egypt
Morocco
South Africa
Oil-exporting countries
Other

1. Includes the Bank for International Settlements and Eastern European
countries that are not listed in line 23.
2. Comprises Bulgaria, Czechoslovakia, the German Democratic Republic,
Hungary, Poland, and Romania.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).




io,i8(r

4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Excludes "holdings of dollars" of the International Monetary Fund.
6. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."

A59

A60

International Statistics • December 1988

3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1988
Area and country

1985

1986

1987'
Feb.

Mar.

Apr.

May

June

July

Aug."

1 Total

401,608

444,745

459,706

441,530r

443,416'

432,679'

450,678'

459,411'

471,461

471,081

2 Foreign countries

400,577

441,724

456,302

439,306

r

441,211'

431,317'

449,532'

456,866'

468,396

468,062

106,413
598
5,772
706
823
9,124
1,267
991
8,848
1,258
706
1,058
1,908
2,219
3,171
1,200
62,566
1,964
998
130
1,107

107,823
728
7,498
688
987
11,356
1,816
648
9,043
3,296
672
739
1,492
1,964
3,352
1,543
58,335
1,835
539
345
948

102,375
793
9,397
717
1,010
13,553
2,039
463
7,460
2,624
934
477
1,858
2,269
2,719
1,680
50,819
1,700
619
389
852

100,406'
800
9,791'
746
835
12,264'
1,920'
711
6,154'
2,854'
746
499
1,965
2,272'
3,086
1,660
50,508'
1,702
725
380
790

94,565'
846
8,252'
874
729
12,227'
1,852'
701'
6,444'
2,755'
627
423'
1,761
2,227'
2,243'
1,594
47,477'
1,658
747
328
802

93,507'
893
8,792
612
993
10,885'
1,610
513
6,201'
2,865
650
439
1,766
2,347
2,452
1,733
47,319'
1,618
573
377
866

100,484
865
8,724
630
1,103'
12,147'
1,719
558
6,606
2,766
886
400
1,911
2,480
3,093
1,543
51,679
1,586
598
339
851

100,925'
806
7,863'
640
954
12,184'
2,840'
590
7,072'
2,656
589
358
1,867
2,087
3,274
1,495
52,084'
1,624
647'
506
787'

99,705
888
8,530
743
1,325
11,861
2,153
563
6,607
3,017
484
333
1,978
1,958
2,486
1,432
51,885
1,559
671
431
800

98,545
944
8,156
609
1,231
11,672
1,942
515
6,476
2,938
534
321
2,015
2,256
2,461
1,397
51,656
1,537
520
466
899

3 Europe
4
Austria
5
Belgium-Luxembourg
6
Denmark
7
Finland
8
France
9 Germany
10 Greece
11
Italy
12 Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19
United Kingdom
20
Yugoslavia
21
Other Western Europe 2
22
U.S.S.R
23
Other Eastern Europe 3
24 Canada

16,482

21,006

25,288

21,894'

21,121'

22,101'

23,799'

24,639'

23,939

24,046

202,674
11,462
58,258
499
25,283
38,881
6,603
3,249
0
2,390
194
224
31,799
1,340
6,645
1,947
960
10,871
2,067

208,825
12,091
59,342
418
25,716
46,284
6,558
2,821
0
2,439
140
198
30,698
1,041
5,436
1,661
940
11,108
1,936

214,641
11,996
64,586
471
25,897
49,8%
6,308
2,740
1
2,286
144
188
29,532
980
4,744
1,329
968
10,838
1,738

203,393'
11,977
57,415
311
25,905
47,233'
6,260
2,668
0
2,238
140
191
29.19C
1,146
3,818
1,336
955
10,872
1,737'

210,445'
12,230'
60,636'
449'
25,9%'
52,531'
6,099
2,652
0
2,239
149
201
27,%7'
1,159
3,0%'
1,277
929
ll.tMO'
1,7%'

200,220'
12,288
54,625
669
26,042'
48,212'
6,132
2,721
1
2,883
141
212
27,2%'
1,304
2,749
1,283
913
10,944
1,805

203,941'
12,297
59,251
369
26,119
48,873'
6,018
3,082
0
2,197
149
177
26,679'
1,434
2,566
1,297
880
10,833
1,719

203,208'
12,365'
56,722
818'
26,230'
51,14C
5,881
3,095
0
2,142
144
187
26,177'
1,238
2,492
1,149
885
10,912
1,631'

206,532
12,358
62,291
501
26,036
49,745
5,778
3,126
0
2,146
157
214
26,018
1,055
2,400
1,136
878
11,009
1,685

208,732
12,241
65,574
418
25,917
49,408
5,661
3,029
0
2,158
148
184
25,822
1,269
2,363
1,184
920
10,785
1,650

66,212

96,126

106,025

106,373'

107,699'

108,395'

113,797'

120,120'

130,313

129,002

639
1,535
6,797
450
698
1,991
31,249
9,226
2,224
845
4,298
6,260

787
2,681
8,307
321
723
1,634
59,674
7,182
2,217
578
4,122
7,901

968
4,577
8,216
510
580
1,363
68,628
5,127
2,071
4%
4,858
8,633

887
3,813
7,940'
548
632
1,211
72,727'
4,777
1,966
521
3,454
7,897

1,0%
3,554
8,502'
565
645
1,238
72,256'
5,084'
2,074
541
3,538
8,606'

1,135'
3,812'
6,343'
542
643
1,284
75,166'
4,781'
1,959
516
4,077'
8,136

841
3,805
8,356
507
631
1,259
78,638'
4,886'
2,012
5%
3,541
8,725

1,065
3,957
9,632
499
695
1,213
82,361'
4,987'
2,055
641'
4,573
8,441'

903
3,562
7,679
1,171
688
1,206
93,083
4,892
2,029
668
6,534
7,897

1,017
3,231
7,439
543
703
1,174
92,428
4,854
2,030
683
6,185
8,714

57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries
63
Other

5,407
721
575
1,942
20
630
1,520

4,650
567
598
1,550
28
694
1,213

4,742
521
542
1,507
15
1,003
1,153

4,865
469
490
1,461
82
1,086
1,276

4,881
483
487
1,458
46
1,141'
1,267'

4,879
483'
495
1,439
47
1,138'
1,276

5,092
503
483
1,4%
42
1,244
1,324

5,423
605
484
1,693
41
1,275
1,325

5,493
539
481
1,726
38
1,340
1,369

5,447
530
490
1,719
36
1,339
1,333

64 Other countries
65
Australia
66
Allother

3,390
2,413
978

3,294
1,949
1,345

3,230
2,191
1,039

2,375
1,430
945

2,499
1,481
1,019

2,216
1,360
856

2,419
1,413
1,006

2,551'
1,678'
873'

2,414
1,554
860

2,290
1,449
842

67 Nonmonetary international and regional
organizations

1,030

3,021

3,404

2,224

2,206'

1,362'

1,147

2,545

3,065

3,020

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 4
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
Other Asia

1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
2. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
3. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.




4. Included in "Other Latin America and Caribbean" through March 1978.
5. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
6. Comprises Algeria, Gabon, Libya, and Nigeria.
7. Excludes the Bank for International Settlements, which is included in
"Other Western Europe."

Nonbank-Reported

Data

3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1988
Type of claim

1985

1987'

1986

Feb/

Mar/

441,530
62,696
218,666
118,461
55,397
63,064
41,707

443,416
61,906
222,269
117,900
55,364
62,536
41,342

Apr/

May r

June r

432,679
61,173
211,576
117,539
55,984
61,555
42,391

450,678
61,276
225,498
122,447
57,502
64,945
41,458

459,411
62,711
230,527
123,418
58,806
64,612
42,755

1 Total

430,489

478,650

497,464

2 Banks' own claims on foreigners
3
Foreign public borrowers
4
Own foreign offices
Unaffiliated foreign banks
5
6
Deposits
7
Other
8
All other foreigners

401,608
60,507
174,261
116,654
48,372
68,282
50,185

444,745
64,095
211,533
122,946
57,484
65,462
46,171

459,706
64,703
224,567
127,573
60,490
67,083
42,863

28,881
3,335

33,905
4,413

37,758
3,692

37,009
5,011

24,044

26,696

23,339

24,120

6,214

5,448

7,370

8,659

6,468

28,487

25,706

23,329

18,684

19,503

38,102

43,974r

40,059

Aug."

36,127
5,538

19,332

July

9 Claims of banks' domestic customers 3 ...
11

480,426

495,538
471,461
63,008
240,342
127,238
59,790
67,448
40,874

471,081
62,605
239,733
126,881
59,632
67,249
41,862

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

43,556

37,807

43,147

44,425

42,221

46,604

n.a.

and foreign branches, agencies, or wholly owned subsidiaries of head office or
parent foreign bank.
3. 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.
4. Principally negotiable time certificates of deposit and bankers acceptances.
5. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see July 1979 BULLETIN,
p. 550.

1. 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.
Reporting banks include all kinds of depository institutions besides commercial
banks, as well as some brokers and dealers.
2. 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,

3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1987r
Maturity; by borrower and area

1984

1985

1988

1986
Sept.

1 Total
2
3
4
5
6
7

K
9
10
11
12
13
14
15
16
17
18
19

By borrower
Maturity of 1 year or less
Foreign public borrowers
All other foreigners
Maturity over 1 year 2
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3
Maturity of over 1 y e a r
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3

Mar/

June

243,952

227,903

232,295

237,320

235,037

218,843

226,776

167,858
23,912
143,947
76,094
38,695
37,399

160,824
26,302
134,522
67,078
34,512
32,567

160,555
24,842
135,714
71,740
39,103
32,637

166,930
27,359
139,571
70,390
39,411
30,980

163,895
26,001
137,894
71,142
38.652
32,491

151,998
24,253
127,745
66,845
35,836
31,009

162,104
25,558
136,546
64,672
35,597
29,076

58,498
6,028
62,791
33,504
4,442
2,593

56,585
6,401
63,328
27,966
3,753
2,791

61,784
5,895
56,271
29,457
2,882
4,267

62,878
5,893
58,390
31,535
2,871
5,362

59,068
5,684
56,494
35,938
2,824
3,887

51,464
4,937
55,433
35,505
2,596
2,062

54,798
6,355
56,049
38,935
2,914
3,053

9,605
1,882
56,144
5,323
2,033
1,107

7,634
1,805
50,674
4,502
1,538
926

6,737
1,925
56,719
4,043
1,539
777

6,726
1,579
55,144
3,518
1,623
1,801

6,867
2,661
53,817
3,668
1,747
2,381

6,040
2,239
51,583
3,669
2,201
1,114

5,401
2,337
49,801
3,699
2,429
1,006

1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.




Dec.

2. Remaining time to maturity,
3. Includes nonmonetary international and regional organizations.

A61

A62

International Statistics • December 1988

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
1986
Area or country

1984

1987

1988

1985
June

Sept.

Dec.

Mar.

June

Sept.

Dec.

Mar.

June

246.4

228.6

381.5r

381.6

385.1'

394.8r

384.6r

387.7'

381.3'

372.3r

353.l r

2 G-10 countries and Switzerland
3
Belgium-Luxembourg
France
4
5 Germany
6
Italy
Netherlands
7
8
Sweden
Switzerland
9
10
United Kingdom
11
Canada
12 Japan

59.2
2.3
4.7
.9
4.6
.7
1.9
.6
28.6
4.4
10.6

57.9
2.1
4.6
.9
4.1
.4
1.7
.9
30.3
4.0
9.0

156.4'
8.9'
15.C
11.5
9.0'
3.4
2.9
5.6
67.9'
6.6'
25.8'

154.8
8.3
14.5
12.4
7.8
3.9
2.7
4.7
68.8
5.9
25.8

156.6'
8.3'
13.7'
11.6'
9.0
4.6
2.4
5.8
71.0'
5.3'
24.y

162.7
9.1
13.3
12.7
8.6
4.4
3.0
5.8
73.7
5.3
26.9

158.1
8.3
12.5
11.2
7.5
7.3
2.4
5.7
72.1'
4.7
26.4'

155.2'
8.2
13.7
10.5
6.6
4.8
2.6
5.4
72.1
4.7
26.6'

159.9'
10.1
13.8
12.6
7.3
4.1
2.1
5.6
69.1
5.5'
29.8'

156.5'
9.3
11.5
11.8
7.4
3.3
2.1
5.1
71.3'
5.0
29.7'

150.5'
9.2
10.8
10.6'
6.1
3.3
1.9
5.6
69.8'
5.4
28.0

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

12.1
.3
.4
.8
.8
.6
.9
2.5
1.0
.5
2.2
2.1

9.6
.4
.4
.7
.7
.6
.7
1.5
.7
.8
1.4
1.7

30.2'
1.7
2.3'
1.6
2.6
3.0
1.0'
6.4
2.2'
2.0'
3.C
4.1'

28.9
1.7
2.2
1.6
2.3
2.7
1.0
6.7
1.9
1.6
3.0
4.2

25.7'
1.7
1.7
1.4
2.3
2.4
.8
5.8
1.8'
1.4
3.(r
3.5

25.7
1.9
1.7
1.4
2.1
2.2
.8
6.3
1.7
1.4
3.0
3.2

25.2
1.8
1.5
1.4
2.0
2.1
.8
6.1
1.7
1.5
3.0
3.1

25.9
1.9
1.6
1.4
1.9
2.0
.8
7.4
1.5
1.6
2.9
2.9

26.3'
1.9
1.7
1.3
2.0
2.3
.5
8.0
1.6
1.6
2.9
2.5

26.2
1.6
1.4
1.0
2.3
2.0
.4
9.0
1.6
1.9
2.8
2.1

23.7'
1.6
1.0
1.2
2.2
2.0
.4
7.2
1.5
1.6
2.8
2.2'

25 OPEC countries 3
26
Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
30
African countries

14.0
1.7
6.5
.6
4.4
.8

12.4
1.7
6.3
.6
3.3
.5

20.3'
2.1
8.8
3.0
4.7'
1.7

19.7
2.2
8.7
2.8
4.4
1.7

19.3'
2.2
8.6
2.5
4.3'
1.7

20.0
2.1
8.5
2.4
5.4
1.6

18.8
2.1
8.4
2.2
4.4
1.7

19.0'
2.1'
8.3'
2.0
5.0'
1.7

17.1
1.9
8.1'
1.9
3.6
1.7

17.1
1.9
8.1'
1.9
3.6
1.7

16.4
1.8
8.0
1.8
3.1
1.7

31 Non-OPEC developing countries

72.4

65.6

100.9'

99.1

99.1'

100.3'

100.5'

97.7'

97.7'

94.0

91.2'

6.3
18.6
5.1
2.5
18.2
1.9
2.9

6.6
17.4
4.9
2.3
15.5
1.5
2.7

9.1'
25.3'
7.1
2.1'
23.8'
1.6
3.3

9.2
25.2
7.1
1.9
23.9
1.5
3.3

9.5
25.2'
7.1
2.1
23.8'
1.4'
3.1

9.5
26.1'
7.2
2.0
23.9
1.4
3.0

9.5
25.1'
7.2
1.9
25.3
1.3
2.9

9.3
25.1
7.0
1.9
24.8'
1.2
2.8

9.4
24.7
6.9
2.0
23.7'
1.1
2.7

9.5
23.9
6.6
1.9
22.5
1.1
2.8

9.4
23.7
6.4
2.1
21.1
.9
2.6

1 Total

32
33
34
35
36
37
38

Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America

39
40
41
42
43
44
45
46
47

Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia

.6
1.6
.3
1.4
6.9
.6
2.2
.6
.5

.3
1.3
.4
1.3
6.3
.3
1.9
.5
.5

.6
3.7
1.3
1.6
8.4'
1.9'
5.7
1.1
.8

.6
4.3
1.3
1.4
7.1
2.1
5.4
1.0
.6

.4
4.9
1.2
1.5
6.6'
2.1
5.4
.9
.7

.9
5.5
1.7
1.4
6.2
1.9
5.4
.9
.6

.6
6.6
1.7
1.3
5.6
1.7
5.4
.8
.7

.3
6.0r
1.9
1.3
5.0'
1.6
5.4
.7
.7

.3
8.2
1.9
1.0
4.9
1.5
5.1
.7
.7

.4
6.1
2.1
1.0
5.6
1.5
5.1
1.0
.7

.3
4.7
2.3
1.0
5.9
1.5
4.9
1.1'
.8'

48
49
50
51

Africa
Egypt
Morocco
Zaire
Other Africa 4

.7
.5
.0
.9

.6
.5
.0
.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'

.6
.8
.1
1.3

.5
.9
.(K
1.3

.5
.9
.1
1.0

.6
.9
.1
1.2

52 Eastern Europe
53
U.S.S.R
54
Yugoslavia
55
Other

2.2
.0
1.3
.9

2.0
.0
1.2
.7

4.0
.3
2.0
1.7

3.3
.1
1.9
1.4

3.2
.1
1.7
1.4

3.0
.1
1.6
1.3

3.3
.3
1.7
1.3

3.3
.5
1.7
1.2

3.0
.4
1.6
1.0

2.9
.3
1.7
.9

3.1
.4
1.7
1.0

84.7
48.0
.3
25.9
1.0
3.1
.1
4.3
2.1
.0

79.3
48.6
.3
21.9
.8
2.6
.0
3.4
1.8
.0

53.(K
16.9T
.4
10.5'
2.2'
4.2
.1
9.4'
9.3
.0

58.3
19.6
.4
11.3
1.8
5.1
.1
10.3
9.7
.0

61.3'
22.C
.7
12.4'
1.8
4.0'
.1
11.1'
9.2'
.0

62.8'
23.8'
.8
12.1'
1.7
4.2
.1
11.4
8.6
.0

60.5'
19.y
.6
n y
1.3
3.9
.1
12.5
8.3
.0

64.3'
25.5'
.6
12.8'
1.2
3.7
.1
12.3
8.1
.0

54.1'
17.1'
.6
13.1'
1.2
3.7
.1
11.2
7.0
.0

54.1'
18.3'
.8'
11.7
1.3
3.2
.1
11.3
7.4
.0

45^
12.1'
1.0
10.0
1.2
3.0
.1
11.7
6.8
.1

1.7

1.8

16.8

17.3

19.8

20.1

18.1

22.3'

23.2

21.5'

22.4

56 Offshore banking centers
57
Bahamas
58
Bermuda
59
Cayman Islands and other British West Indies
60
Netherlands Antilles
61
Panama
62
Lebanon
63
Hong Kong
64
Singapore
65
Others 6
66 Miscellaneous and unallocated 7

1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. 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 States'
Millions of dollars, end of period
1988

1987
Type, and area or country

1984

1985

1986
June

Sept.

Mar.

June"

r

Dec.

1 Total

29,357

27,825

25,779

29,019

28,669

27,590

28,84c

29,169

2 Payable in dollars
3 Payable in foreign currencies

26,389
2,968

24,296
3,529

21,980
3,800

24,565
4,454

24,141
4,528

22,253'
5,337

23,246'
5,594'

23,763
5,406

By type
4 Financial liabilities
5
Payable in dollars
6
Payable in foreign currencies

14,509
12,553
1,955

13,600
11,257
2,343

12,312
9,827
2,485

14,096
11,197
2,899

13,034
10,080
2,954

11,574'
8,097'
3,477

13,066'
9,384'
3,681'

12,894
9,397
3,497

7 Commercial liabilities
8
Trade payables
Advance receipts and other liabilities . .
9

14,849
7,005
7,843

14,225
6,685
7,540

13,467
6,462
7,004

14,923
7,286
7,637

15,635
7,548
8,086

16,016
7,425
8,591

15,774'
6,601'
9,173'

16,275
6,859
9,417

13,836
1,013

13,039
1,186

12,153
1,314

13,368
1,555

14,061
1,574

14,156r
1,859

13,862'
1,912

14,366
1,910

6,728
471
995
489
590
569
3,297

7,700
349
857
376
861
610
4,305

8,079
270
661
368
704
646
5,140

9,713
257
822
402
669
655
6,646

9,298
230
615
505
641
685
6,357

7,794'
202
364'
583
1,014
493
4,946

8,939'
241
365
586
1,013
652'
5,90C

8,577
267
330
622
1,008
705
5,471

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

863

839

399

441

397

400

467

458

20
21
22
23
24
25
26

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

5,086
1,926
13
35
2,103
367
137

3,184
1,123
4
29
1,843
15
3

1,961
614
4
32
1,163
22
0

1,744
398
0
22
1,223
29
2

961
280
0
22
580
17
3

847
278
0
25
476
13
0

1,195
249
0
23
824
15
2

1,192
211
0
19
896
26
0

27
28
29

Asia
Japan
...
Middle East oil-exporting countries .

1,777
1,209
155

1,815
1,198
82

1,805
1,398
8

2,131
1,751
7

2,300
1,830
7

2,429
2,042
8

2,379
1,987
12

2,591
2,063
11

30

Africa

14
0

12
0

1
1

1
0

2
0

4
1

5
3

2
1

41

50

67

66

76

100

80

73

4,001
48
438
622
245
257
1,095

4,074
62
453
607
364
379
976

4,447
101
352
714
424
387
1,341

4,966
111
423
585
324
557
1,380

4,951
59
437
674
336
556
1,473

5,626
125
451
916
421
559
1,668

5,757'
148'
441
817
484'
529
1,798

1,975

1,449

1,405

1,371

1,399

1,301

1,393

1,069
13
266
88
67
214
203

1,082
22
252
40
47
231
176

865
19
168
46
19
189
162

937'
17
325
59
14
164'
85'

1,008
64
274
54
28
238
111

31
32
33
34
35
36
37
38
39
40

Oil-exporting countries
All other 4
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada

5,810
150
433
798
535
455
1,850
1,169

41
42
43
44
45
46
47

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

1,871
7
114
124
32
586
636

1,088
12
77
58
44
430
212

924
32
156
61
49
217
216

48
49
50

Asia
Japan
-j
Middle East oil-exporting countries 2,5

5,285
1,256
2,372

6,046
1,799
2,829

5,091
2,052
1,679

5,919
2,481
1,867

6,511
2,422
2,104

6,573
2,580
1,964

5,899'
2,509'
1,069'

6,272
2,660
1,321

51
52

Africa
Oil-exporting countries

588
233

587
238

619
197

524
166

572
151

574
135

576'
159'

623
115

53

All other 4

1,128

982

980

1,074

1,119

1,078

1,212'

1,394

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 1988

3.23 CLAIMS ON UNAFFILIATED FOREIGNERS
United States1

Reported by Nonbanking Business Enterprises in the

Millions of dollars, end of period
1987
Type, and area or country

1984

1985

1988

1986
June

Sept.'

Dec.'

Mar.

June^

1 Total

29,901

28,876

36,248r

33,578'

33,209

32,285

31,389

38,452

2 Payable in dollars
3 Payable in foreign currencies

27,304
2,597

26,574
2,302

33,850''
2,399'

30,597'
2,981'

30,648
2,561

29,192
3,093

29,410
1,979

36,524
1,928

By type
4 Financial claims
5
Deposits
6
Payable in dollars
7
Payable in foreign currencies
X Other financial claims
9
Payable in dollars
10
Payable in foreign currencies

19,254
14,621
14,202
420
4,633
3,190
1,442

18,891
15,526
14,911
615
3,364
2,330
1,035

26,273'
19,916r
19,331
585'
6,357'
5,005'
1,352'

23,686'
16,014'
14,775'
1,238'
7,673'
6,391'
1,282'

22,857
17,286
16,377
908
5,572
4,447
1,124

21,747
15,535
14,089
1,447
6,212
5,099
1,113

20,606
13,205
12,650
555
7,400
6,349
1,051

26,902
19,974
19,283
691
6,928
6,126
803

11 Commercial claims
12 Trade receivables
13 Advance payments and other claims

10,646
9,177
1,470

9,986
8,6%
1,290

9,975
8,783
1,192

9,892
8,848'
1,043

10,352
9,399
953

10,537
9,530
1,007

10,784
9,726
1,057

11,550
10,592
958

9,912
735

9,333
652

9,513
462

9,431
461

9,824
528

10,005
533

10,410
373

11,116
434

5,762
15
126
224
66
66
4,864

6,929
10
184
223
161
74
6,007

10,744'
41
138
116'
151
185
9,855'

11,468'
6
169

10,785
26
171
103
157
44
10,074

10,666
6
359
72
348
76
9,561

10,340
15
328
85
334
56
9,276

12,532
15
174
145
333
81
11,410

14
15

16
17
IX
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

%'

140
98
10,745'

23

Canada

3,988

3,260

4,808'

3,712

3,294

3,294

2,840

3,009

24
25
26
27
28
29
30

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

8,216
3,306
6
100
4,043
215
125

7,846
2,698
6
78
4,571
180
48

9,291'
2,628
6
86'
6,078
174
21

7,638'
2,589
6
115'
4,429'
168'
20

7,579
3,299
2
113
3,716
174
18

6,831
1,804
7
64
4,439
172
19

6,511
2,268
43
86
3,580
154
35

10,865
4,121
126
46
6,062
147
23

31
32
33

Asia
Japan
Middle East oil-exporting countries

961
353
13

731
475
4

1,317'
999
7

789
452
6

1,105
737
10

830
550
10

841
673
8

415
184
6

34
35

Africa
Oil-exporting countries 3

210
85

103
29

85
28

59'
9

71
14

65
7

53
7

61
10

36

All other 4

117

21

28'

20'

24

61

21

20

3,801
165
440
374
335
271
1,063

3,533
175
426
346
284
284
898

3,708
133
414
444
164
217
999

3,845
137
439
526
172
187
1,074

4,120
169
416
550
190
206
1,228

4,132
179
595
560
133
185
1,086

4,135
192
485
629
151
173
1,084

4,821
159
605
767
173
263
1,299

37
38
39
40
41
42
43

Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

44

Canada

1,021

1,023

934

1,046

1,051

931

1,167

947

45
46
47
48
49
50
51

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

2,052
8
115
214
7
583
206

1,753
13
93
206
6
510
157

1,857
28
193
234
39
412
237

1,727'
14
169
204'
19
347'
204'

1,711
12
143
231
20
369
192

1,912
19
159
226
26
366
298

1,963
14
171
215
24
371
322

2,095
13
174
234
25
399
345

52
53
54

Asia
Japan
Middle East oil-exporting countries 2

3,073
1,191
668

2,982
1,016
638

2,755
881
563

2,642
952
452

2,800
1,027
434

2,919
1,160
450

2,867
1,109
412

3,010
1,168
450

55
56

Africa
Oil-exporting countries

470
134

437
130

500
139

378
123

407
124

401
144

420
157

421
137

57

All other 4

229

257

222

255

262

241

231

257

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
1988

1988
Transactions, and area or country

1986

1987
Jan.Aug.

Feb.

Mar.

Apr.

May

June

July

Aug/

U.S. corporate securities
STOCKS

148,114
129,395

249,113
232,849

132,500
131,285

16,344
16,720

18,068
18,482

15,022
13,705

13,654
14,723

20,007
19,678

19,207
18,383

17,275
16,704

3 Net purchases, or sales (—)

18,719

16,264

1,215

-376

-414

1,317

-1,069

329

824

572

4 Foreign countries

18,927

16,313

1,228

-344

-444

1,300

-976

287

793

548

9,559
459
341
936
1,560
4,826
816
3,031
976
3,876
297
373

1,928
905
-74
892
-1,123
630
1,048
1,314
-1,360
12,8%
123
365

-1,028
-220
209
-465
-989
-246
310
464
-1,467
2,612
158
179

-323
-29
-37
59
-252
-130
-167
261
-251
70
-18
85

-360
-7
171
-223
-32
-331
-61
98
-788
577
5
84

481
-1
104
-145
-17
429
241
230
24
372
19
-67

-1,151
-153
-66
-43
-247
-711
102
-82
62
106
23
-35

33
121
-36
-56
-204
146
-172
-116
-549
1,039
3
51

227
-34
-3
20
-90
253
58
58
-159
518
78
13

287
-21
9
-5
-37
234
162
159
91
-228
41
36

-208

-48

-13

-33

31

17

-92

42

31

23

123,169
72,520

105,856
78,312

55,289
38,374

6,453
6,039

7,799
5,594

5,618
4,433

7,810
3,518

8,341
4,590'

8,277
5,064

5,966
3,942

20 Net purchases, or sales ( - )

50,648

27,544

16,915

414

2,206

1,185

4,292

3,751'

3,213

2,024

21 Foreign countries

49,801

26,804

17,436

532

2,201

1,186

4,262

3,569'

3,190

2,039

22 Europe

39,313
389
-251
387
4,529
33,900
548
1,476
-2,961
11,270
16
139

21,989
194
33
269
1,587
19,770
1,2%
2,473
-548
1,638
16
-61

10,543
124
1,197
366
8,286
662
1,378
-428
5,312
-13
19

263
13
118
-1
60
49
-29
316
-76
88
-22
-8

1,462
57
260
30
-14
976
87
245
144
270
3
-11

658
7
347
58
-15
228
104
100
-61
377
4
5

2,256
-18
11
180
152
1,886
98
134
10
1,749
-2
17

2,203'
15
226
55
-71
1,738
216
158'
-92
1,075
4
5

1,744
-7
8
17
-139
1,685
130
255
-102
1,153
10

1,684
5
166
41
84
1,390
27
194
-88
254
1
-33

847

740

-521

-119

5

-1

31

182

23

-14

-154'
6,404
6,558'

-86
7,050
7,136

-749
5,893
6,642

-708'
17,013'
17,721

-657
19,219
19,876

-321
17,033
17,354

2 Foreign sales

5 Europe
6
France
8
9
10

Netherlands
Switzerland
United Kingdom

12 Latin America and Caribbean
13 Middle East 1
16 Other countries
17 Nonmonetary international and
regional organizations
BONDS 2

18 Foreign purchases
19 Foreign sales

24
25
26
27
28
29
30
31
32
33

Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries

34 Nonmonetary international and
regional organizations

0

0

Foreign securities
905'
5,964
5,059'

35 Stocks, net purchases, or sales ( - )
36
Foreign purchases
37
Foreign sales

-1,853
49,149
51,002

1,149
95,263
94,114

-604
48,506
49,111

-678
5,717
6,3%

-724
6,693
7,417

372
5,797
5,425

38 Bonds, net purchases, or sales ( - )
39
Foreign purchases
40
Foreign sales

-3,685
166,992
170,677

-7,830
199,010'
206,845'

-4,888
129,207
134,095

-1,433
15,858
17,291

-1,179
16,561
17,740

-137
15,593
15,730

41 Net purchases, or sales (—), of stocks and bonds . . . .

-5,538

-6,687'

-5,493

-2,111

-1,903

235

1,778'

-863

-743

-1,071

42 Foreign countries

-6,493

-6,718'

-5,806

-2,131

-1,944

179

1,562'

-774

-718

-1,100

-18,026
-876
3,476
10,858
52
-1,977

-12,088'
-4,065
828
9,338
89
-820

-5,339
-2,528
1,279
688
122
-28

-1,627
-648
-64
37
3
169

-1,541
-366
138
-154
48
-70

483
-406
538
-407
14
-43

681'
-162
322
696'
-1
24

-1,185'
-186
301
557'
-262

-474
-319
-48
263
11
-151

-1,351
213
-34
-108
37
143

313

20

41

56

-89

-26

30

43 Europe
44 Canada
45 Latin America and Caribbean
48 Other countries
49 Nonmonetary international and
regional organizations

955

31

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-




873
15,119
14,246

216

1

ties sold abroad by U.S. corporations organized to finance direct investments
abroad.

A66
3.25

International Statistics • December 1988
MARKETABLE U.S. TREASURY BONDS AND NOTES

Foreign Transactions

Millions of dollars
1988
Country or area

1986

1988

1987
Jan.Aug.

Feb.

Mar.

Apr.

May

June

July

Aug."

Transactions, net purchases or sales ( - ) during period 1
I Estimated total2

19,388

25,587

39,673

12,083

9,980

3,433

11,062

-2,162

905

2 Foreign countries 2

20,491

30,889

40,068

12,832

9,017

3,728

9,972

-3,337

2,156

-40

16,326
-245
7,670
1,283
132
329
4,546
2,613
0
881

23,716
653
13,330
-913
210
1,917
3,975
4,563
-19
4,526

13,589
1,216
-3,484
-420
-513
554
6,949
9,263
23
2,875

5,878
242
1,397
334
26
-1,188
4,373
678
16
559

3,471
454
919
378
-245
643
-244
1,570
-3
372

2,332
47
1,576
117
-93
344
97
238
5
133

3,108
159
79
-22
104
-309
1,523
1,560
14
1,415

-3,226
-68
-4,241
-796
-232
654
47
1,420
-10
669

-1,460
122
-4,240
312
-187
-51
837
1,755
-9
-314

-836
-209
-2,020
-406
175
344
416
863
0
-315

926
-96
1,130
-108
1,345
-22
-54
1,067

-2,192
150
-1,142
-1,200
4,488
868
-56
407

591
-93
581
103
21,236
20,305
-27
1,805

630
-1
320
311
5,921
4,996
25
-182

198
20
169
10
5,463
4330
5
-492

75
15
97
-36
713
687
0
475

360
1
-17
376
4,476
2,820
-13
626

-580
2
63
-645
-382
-52
-1
183

0
-2
57
-55
3,246
3,006
-10
694

-312
-128
-292
108
1,027
1,539
5
391

21 Nonmonetary international and regional organizations
22
International
23
Latin American regional

-1,104
-1,430
157

-5,300
-4,387
3

-397
13
-51

-748
-879
-2

963
968
-5

-295
-334
0

1,090
1,155
7

1,174
1,546
-38

-1,252
-1,137
-14

-235
-282
-8

Memo
24 Foreign countries'
25
Official institutions
26 Other foreign 2

20,491
14,214
6,283

30,889
31,064
-181

40,068
23,089
16,981

12,832
7,169
5,663

9,017
8,135'
882r

3,728
3,075
653

9,972
5,062
4,910

-3,337
-1,658
-1,678

2,156
-2,362
4,518

-40
-1,450
1,411

-1,529
5

-3,142
16

-83
1

-296
0

578
0

514
0

-612
0

-201
0

295
0

449
0

3 Europe 2
Belgium-Luxembourg
4
5
Germany 2
6
Netherlands
Sweden
7
8
Switzerland 2
United Kingdom
9
10 Other Western Europe
11
Eastern Europe
12 Canada
13
14
15
16
17
18
19
20

27
28

Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
All other

Oil-exporting countries
Middle East
Africa 4

1. Estimated official and private transactions in marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based on
monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
2. Includes U.S. Treasury notes publicly issued to private foreign residents
denominated in foreign currencies.




-274

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 year
Rate on Oct. 31,

Rate on Oct. 31, 1988

Country
Percent

4.0
7.5
49.0
10.51
7.0

Aug. 1988
Aug. 1988
Mar. 1981
Oct. 1988
Oct. 1983

Country

Month
effective

Austria..
Belgium .
Brazil . . .
Canada..
Denmark

Percent

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

3.27

Rate on Oct. 31, 1988

Country
Month
effective

7.25
3.5
12.5
2.5
4.0

Oct. 1988
Aug. 1988
Aug. 1988
Feb. 1987
Aug. 1988

Percent

Month
effective

8.0

3.0

June 1983
Aug. 1988

8.0

Norway
Switzerland
,
United Kingdom'
Venezuela

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.

FOREIGN SHORT-TERM INTEREST RATES
Percent per year, averages of daily figures
1988
Country, or type

1985

1986

1987
Apr.

1
2
3
4
5
6
7
8
9
10

May

June

July

Aug.

Sept.

Oct.

Eurodollars
United Kingdom
Canada
Germany
Switzerland

8.27
12.16
9.64
5.40
4.92

6.70
10.87
9.18
4.58
4.19

7.07
9.65
8.38
3.97
3.67

7.05
8.25
8.90
3.37
1.83

7.40
8.00
9.07
3.51
2.23

7.61
8.91
9.44
3.88
2.82

8.09
10.45
9.42
4.88
3.67

8.47
11.29
9.92
5.28
3.57

8.31
12.09
10.48
4.93
3.34

8.51
11.94
10.48
5.03
3.62

Netherlands
France
Italy
Belgium
Japan

6.29
9.91
14.86
9.60
6.47

5.56
7.68
12.60
8.04
4.96

5.24
8.14
11.15
7.01
3.87

3.98
7.99
10.54
6.08
3.80

4.07
7.81
10.57
6.05
3.80

4.10
7.27
10.90
6.04
3.82

4.85
7.32
11.02
6.84
3.84

4.50
7.58
11.02
7.25
3.98

5.51
7.86
11.27
7.39
4.15

5.35
7.87
11.30
7.24
4.26

NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate.




A68

International Statistics • December 1988

3.28 FOREIGN EXCHANGE RATES'
Currency units per dollar
1988
Country/currency

1986

1987
May

1
2
3
4
5
6

Australia/dollar^
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone

June

July

Aug.

Sept.

Oct.

70.026
20.676
59.336
1.3658
2.9434
10.598

67.093
15.260
44.662
1.3896
3.4615
8.0954

70.136
12.649
37.357
1.3259
3.7314
6.8477

77.74
11.912
35.381
1.2373
3.7314
6.4938

80.76
12.380
36.786
1.2176
3.7314
6.6893

80.00
12.991
38.649
1.2075
3.7314
7.0266

80.57
13.281
39.562
1.2237
3.7314
7.2280

79.15
13.135
39.149
1.2267
3.7314
7.1764

80.%
12.777
38.077
1.2055
3.7314
7.0055

4.4036

4.3041
6.1975
1.8165
148.71
7.8133
14.720
147.30

7
8
9
10
11
12
13

Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee..
Ireland/punt

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

1.7981
135.47
7.7985
12.943
148.79

4.0297
5.7348
1.6935
135.75
7.8156
13.315
157.78

4.1761
5.9310
1.7579
140.69
7.8073
13.785
152.65

4.38%
6.2241
1.8466
147.85
7.8135
14.079
145.49

4.4720
6.3919
1.8880
151.62
7.8050
14.217
142.17

4.4282
6.3515
1.8668
151.47
7.8106
14.490
143.60

14
15
16
17
18
19
20

Italy/lira
Japan/yen
Malaysia/rinegit
Netherlands/guilder
New Zealand/dollar 2 . . .
Norway/krone
Portugal/escudo

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

1297.03
144.60
2.5185
2.0263
59.327
6.7408
141.20

1258.81
124.79
2.5847
1.8987
68.889
6.1875
138.44

1305.56
127.47
2.5860
1.9767
69.996
6.3951
143.54

1367.26
133.02
2.6267
2.0827
66.832
6.7207
150.42

1397.93
133.77
2.6520
2.1319
64.815
6.9016
153.72

1393.15
134.32
2.6643
2.1063
61.480
6.9150
154.18

21
22
23
24
25
26
27
28
29
30

Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound

2.2008
2.2343
861.89
169.98
27.187
8.6031
2.4551
39.889
27.193
129.74

2.1782
2.2918
884.61
140.04
27.933
7.1272
1.7979
37.837
26.314
146.77

2.1059
2.0385
825.93
123.54
29.471
6.3468
1.4918
31.756
25.774
163.98

2.0109
2.2114
739.44
112.04
30.993
5.9091
1.4111
28.666
25.170
186.95

2.0285
2.2716
732.88
116.25
31.133
6.1074
1.4629
28.723
25.280
177.68

2.0459
2.3985
728.67
122.27
31.782
6.3542
1.5343
28.726
25.523
170.51

2.0417
2.4531
725.74
124.122
32.807
6.4878
1.5837
28.693
25.560
169.65

2.0409
2.4575
723.00
124.36
32.953
6.4448
1.5763
28.914
25.548
168.40

89.74

92.58

6.0121

1353.36
128.68

2.6785
2.0486
62.113
6.7400
150.13
2.0202
2.4662
712.72
120.02
32.989
6.2694
1.5372
28.880
25.365
173.87

MEMO

31 United States/dollar 3 . . .

143.01

1. Averages of certified noon buying rates in New York for cable transfers.
Data in this table also appear in the Board's G.5 (405) release. For address, see
inside front cover.
2. Value in U.S. cents.
3. Index of weighted-average exchange value of U.S. dollar against the




%.53

98.29

97.91

95.10

currencies of 10 industrial countries. The weight for each of the 10 countries is the
1972-76 average world trade of that country divided by the average world trade of
all 10 countries combined. Series revised as of August 1978 (see FEDERAL
RESERVE BULLETIN, vol. 64, A u g u s t 1978, p. 700).

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 1988

Page
All

TABLES

Published Irregularly, with Latest Bulletin Reference
Assets and liabilities of commercial banks, March 31, 1987
Assets and liabilities of commercial banks, June 30, 1987
Assets and liabilities of commercial banks, September 30, 1987
Assets and liabilities of commercial banks, December 31, 1987
Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1987
Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1987
Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1987
Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1988
Terms of lending at commercial banks, August 1987
Terms of lending at commercial banks, November 1987
Terms of lending at commercial banks, February 1988
Terms of lending at commercial banks, May 1988
Pro forma balance sheet and income statements for priced service operations, June 30, 1987....
Pro forma balance sheet and income statements for priced service operations, September 30,1987
Pro forma balance sheet and income statements for priced service operations, March 31, 1988 .



October
February
April
June
November
February
June
September
January
September
May
September
November
February
August

1987
1988
1988
1988
1987
1988
1988
1988
1988
1988
1988
1988
1987
1988
1988

A70
A70
A70
A70
A70
A76
A76
A82
A70
A76
A70
A70
A74
A80
A70

A70

Federal Reserve Board of Governors
M A N U E L H . JOHNSON,

Chairman
Vice Chairman

W A Y N E D . ANGELL

OFFICE OF BOARD

MEMBERS

DIVISION

A L A N GREENSPAN,

JOSEPH R. COYNE, Assistant to the Board
DONALD J. WINN, Assistant to the Board
BOB STAHLY MOORE, Special Assistant to the

MARTHA R . SEGER

Board

OF INTERNATIONAL

E D W I N M . T R U M A N , Staff Director
LARRY J . PROMISEL, Senior Associate
CHARLES J. S I E G M A N , Senior Associate
D A V I D H . H O W A R D , Deputy Associate

ROBERT F. GEMMILL, Staff

LEGAL

DIVISION

MICHAEL BRADFIELD, General
J . VIRGIL M A T T I N G L Y , J R . ,

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

OFFICE OF THE

SECRETARY

WILLIAM W . WILES,
Secretary
BARBARA R. LOWREY, Associate

JAMES MCAFEE, Associate

Secretary
Secretary

DIVISION OF CONSUMER
AFFAIRS
AND COMMUNITY
GRIFFITH L . GARWOOD,

Director

G L E N N E . L O N E Y , Assistant
Director
E L L E N M A L A N D , Assistant
Director
DOLORES S . S M I T H , Assistant
Director

DIVISION OF BANKING
SUPERVISION AND
REGULATION

FINANCE

Director
Director
Director

Adviser

D O N A L D B . A D A M S , Assistant
Director
PETER HOOPER I I I , Assistant
Director
Director
K A R E N H . JOHNSON, Assistant
RALPH W . S M I T H , J R . , Assistant
Director

DIVISION

OF RESEARCH

AND

STATISTICS

MICHAEL J. PRELL, Director
E D W A R D C . E T T I N , Deputy
Director
THOMAS D . SIMPSON, Associate
Director

LAWRENCE SLIFMAN, Associate

Director

ELEANOR J. STOCKWELL, Associate
Director
M A R T H A B E T H E A , Deputy Associate
Director
PETER A . T I N S L E Y , Deputy Associate
Director
M Y R O N L . K W A S T , Assistant
Director
S U S A N J. LEPPER, Assistant
Director
M A R T H A S . S C A N L O N , Assistant
Director
D A V I D J. STOCKTON, Assistant
Director
JOYCE K . ZICKLER, Assistant
Director
L E V O N H . G A R A B E D I A N , Assistant
Director

(Administration)

DIVISION

OF MONETARY

AFFAIRS

D O N A L D L . K O H N , Director
D A V I D E . L I N D S E Y , Deputy
Director
B R I A N F . M A D I G A N , Assistant
Director
RICHARD D . PORTER, Assistant
Director

NORMAND R.V. BERNARD, Special Assistant

Staff Director
D O N E . K L I N E , 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 . B I E R N , Assistant
Director
JOE M. CLEAVER, Assistant Director
ROGER T . COLE, Assistant
Director
JAMES I . GARNER, Assistant
Director
JAMES D . GOETZINGER, Assistant
Director
MICHAEL G . M A R T I N S O N , Assistant
Director
ROBERT S . PLOTKIN, Assistant
Director
S I D N E Y M . S U S S A N , Assistant
Director
L A U R A M . HOMER, Securities Credit Officer

to the

WILLIAM TAYLOR,




OFFICE OF THE INSPECTOR
BRENT L. BOWEN, Inspector

GENERAL

General

Board

A71

and Official Staff
H . ROBERT HELLER

JOHN P . L A WARE

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

THEODORE E. ALLISON, Staff

DIVISION OF FEDERAL
BANK
OPERATIONS

Programs Officer

DIVISION OF HUMAN

RESOURCES

MANAGEMENT

D A V I D L . S H A N N O N , Director
JOHN R . W E I S , Associate
Director
A N T H O N Y V . D I G I O I A , Assistant
Director
JOSEPH H . H A Y E S , J R . , Assistant
Director
F R E D HOROWITZ, Assistant
Director

JOHN H. PARRISH, Assistant

GEORGE E . LIVINGSTON, Controller
STEPHEN J. CLARK, Assistant Controller

(Programs and

Budgets)
DARRELL R . P A U L E Y ,

DIVISION

Assistant Controller (Finance)

OF SUPPORT

SERVICES

ROBERT E . FRAZIER, Director
GEORGE M . LOPEZ, 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 , Deputy Executive

DIVISION
SYSTEMS

OF HARDWARE

AND

Director

SOFTWARE

Director
Assistant Director
ELIZABETH B . RIGGS, Assistant
Director
ROBERT J. Z E M E L , Assistant
Director
BRUCE M . BEARDSLEY,

THOMAS C . J U D D ,

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 . S T E V E N S , Assistant
PATRICIA A . W E L C H , Assistant




DEVELOPMENT

Director
Director
Director

AND

Director

Assistant

FLORENCE M. YOUNG,

CONTROLLER

RESERVE

C L Y D E H . FARNSWORTH, J R . , Director
D A V I D L . ROBINSON, 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
EARL G . H A M I L T O N , Assistant
Director
LOUISE L . ROSEMAN,

OFFICE OF THE

Director

Adviser

Director

All

Federal Reserve Bulletin • December 1988

Federal Open Market Committee
FEDERAL

OPEN MARKET

COMMITTEE

MEMBERS
A L A N GREENSPAN,

Chairman

W A Y N E D . ANGELL
ROBERT P . BLACK
ROBERT P . FORRESTAL

E . GERALD CORRIGAN,

H . ROBERT HELLER
W . L E E HOSKINS
M A N U E L H . JOHNSON

ALTERNATE
ROGER G U F F E Y
SILAS K E E H N

Vice Chairman

E D W A R D W . K E L L E Y , JR.
JOHN P . L A W A R E
ROBERT T . PARRY
MARTHA R . SEGER

MEMBERS

THOMAS C . MELZER
FRANK E . MORRIS

JAMES H . O L T M A N

STAFF
DONALD L . KOHN, Secretary and
Economist
NORMAND R . V . BERNARD, Assistant
Secretary
MICHAEL BRADFIELD, General
Counsel
ERNEST T . PATRIKIS,

Deputy General Counsel

MICHAEL J. PRELL,
Economist
EDWIN M . TRUMAN,
Economist

JOHN H. BEEBE, Associate
Economist
J. ALFRED BROADDUS, JR., Associate

Economist

PETER D . STERNLIGHT, Manager
S A M Y . CROSS, Manager for

FEDERAL ADVISORY

JOHN M. DAVIS, Associate
Economist
RICHARD G. DAVIS, Associate
Economist
DAVID E. LINDSEY, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
THOMAS D . SIMPSON, Associate
Economist
LAWRENCE SLIFMAN, Associate
Economist
SHEILA L . TSCHINKEL, Associate
Economist

for Domestic Operations, System Open Market Account
Foreign Operations, System Open Market Account

COUNCIL

CHARLES T . FISHER, III,
BENNETT A . BROWN,
J. TERRENCE MURRAY, First District
WILLARD C . BUTCHER, Second District
SAMUEL A . M C C U L L O U G H , Third District
THOMAS H . O ' B R I E N , Fourth District
FREDERICK D E A N E , JR., Fifth District
B E N N E T T A . B R O W N , Sixth District




President

Vice President

CHARLES T.
D O N A L D N.
DEWALT H .
F . PHILLIPS

FISHER, I I I , Seventh District
B R A N D I N , Eighth District
A N K E N Y , Jr., Ninth District
GILTNER, Tenth District

T. C. FROST, Eleventh District
P A U L H A Z E N , Twelfth District

HERBERT V . PROCHNOW,
Secretary
WILLIAM J. KORSVIK, Associate
Secretary

A73

and Advisory Councils
CONSUMER ADVISORY

COUNCIL

STEVEN W . H A M M , Columbia, South Carolina,
E D W A R D J. WILLIAMS, Chicago, Illinois, Vice

Chairman
Chairman

NAOMI G. ALBANESE, Greensboro, North Carolina
STEPHEN BROBECK, Washington, D.C.
E D W I N B . BROOKS, JR., Richmond, Virginia
JUDITH N. B R O W N , Edina, Minnesota
MICHAEL S . CASSIDY, New York, New York
BETTY TOM C H U , Arcadia, California
JERRY D. CRAFT, Atlanta, Georgia
D O N A L D C. D A Y , Boston, Massachusetts
RICHARD B. DOBY, Denver, Colorado
RICHARD H . F I N K , Washington, D.C.

ROBERT A . HESS, W a s h i n g t o n , D . C .
ROBERT J. HOBBS, Boston, Massachusetts
RAMON E. JOHNSON, Salt Lake City, Utah
ROBERT W. JOHNSON, West Lafayette, Indiana
A . J. (JACK) K I N G , Kalispell, Montana
JOHN M. KOLESAR, Cleveland, Ohio

NEIL J. FOGARTY, Jersey City, N e w Jersey

SANDRA PHILLIPS, Pittsburgh, Pennsylvania
JANE SHULL, Philadelphia, Pennsylvania

STEPHEN GARDNER,
KENNETH A. H A L L ,
ELENA G. HANGGI,

Dallas, Texas
Picayune, Mississippi
Little Rock, Arkansas

THRIFT INSTITUTIONS

ADVISORY

RALPH

SPURGIN,

Columbus, Ohio

COUNCIL

ROBERT S. DUNCAN, Hattiesburg, Mississippi
BETTY GREGG, Phoenix, Arizona
THOMAS A. K I N S T , Hoffman Estates, Illinois
RAY MARTIN, LOS Angeles, California




E.

LAWRENCE WINTHROP, Portland, Oregon

JAMIE J. JACKSON,
GERALD M. CZARNECKI,

JOE C. MORRIS, Overland Park, Kansas

ALAN B. LERNER, Dallas, Texas
RICHARD L. D. MORSE, Manhattan, Kansas
WILLIAM E. O D O M , Dearborn, Michigan
SANDRA R. PARKER, Richmond, Virginia

Houston, Texas, President
Honolulu, Hawaii, Vice President
JOSEPH W. MOSMILLER, Baltimore, Maryland
JANET M. PAVLISKA, Arlington, Massachusetts
LOUIS H. PEPPER, Seattle, Washington
WILLIAM G. SCHUETT, Milwaukee, Wisconsin
DONALD B. SHACKELFORD, Columbus, Ohio

A74

Federal Reserve Board Publications
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A N N U A L STATISTICAL DIGEST

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REGULATIONS OF THE BOARD OF GOVERNORS OF THE F E D ERAL RESERVE SYSTEM.
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INTRODUCTION TO FLOW OF F U N D S .

PUBLIC POLICY A N D CAPITAL FORMATION.

1981. 326 pp.

$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.
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FEDERAL RESERVE REGULATORY SERVICE.

THE U . S . ECONOMY IN AN INTERDEPENDENT WORLD: A
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INDUSTRIAL PRODUCTION—1986 EDITION.

December 1986.

440 pp. $9.00 each.
FINANCIAL FUTURES A N D OPTIONS IN THE U . S . ECONOMY.

December 1986. 264 pp. $10.00 each.

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
A Consumer's Guide to Mortgage Lock-Ins
A Consumer's Guide to Mortgage Closings
A Consumer's Guide to Mortgage Refinancing
Making Deposits: When Will Your Money Be Available?

A75

PAMPHLETS FOR FINANCIAL
INSTITUTIONS
Short pamphlets on regulatory compliance, primarily suitable for banks, bank holding companies and creditors.

GATION, by Bonnie E. Loopesko. November 1983. Out
of print.
134. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET
INTERVENTION: A REVIEW OF THE LITERATURE, b y

Ralph W. Tryon. October 1983. 14 pp. Out of print.

Limit of 50 copies
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

135. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET
INTERVENTION: APPLICATIONS TO C A N A D A , GERMANY,

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. THE EFFECTS OF FISCAL POLICY ON THE U . S . ECON-

OMY, by Darrell Cohen and Peter B. Clark. January
1984. 16 pp. Out of print.
137. T H E IMPLICATIONS FOR B A N K 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,
AND THE LIMITS OF CONCENTRATION IN LOCAL BANK-

ING 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

THE LITERATURE, by John D. Wolken. November 1984.
38 pp. Out of print.
STAFF STUDIES:

Summaries Only Printed in the

Bulletin
Studies and papers on economic and financial subjects that
are of general interest. Requests to obtain single copies of
the full text or to be added to the mailing list for the series
may be sent to Publications Services.
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.
1 9 8 2 . 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 1 9 8 1 , by Margaret

L. Greene. August 1984. 36 pp.
130. EFFECTS OF EXCHANGE RATE VARIABILITY ON INTERNATIONAL TRADE A N D 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 . D O L L A R DEUTSCHE MARK INTERVENTION, by Laurence R . Ja-

cobson. October 1983. 8 pp.
132. TIME-SERIES STUDIES OF THE RELATIONSHIP BETWEEN
EXCHANGE RATES A N D INTERVENTION: A REVIEW OF

THE TECHNIQUES AND LITERATURE, b y K e n n e t h R o -

goff. October 1983. 15 pp.
133. RELATIONSHIPS AMONG EXCHANGE RATES, INTERVENTION, A N D INTEREST RATES: A N EMPIRICAL INVESTI-




141. A COMPARISON OF DIRECT DEPOSIT A N D CHECK PAYMENT COSTS, by William Dudley. November 1984.

15 pp. Out of print.
142. MERGERS A N D ACQUISITIONS BY COMMERCIAL BANKS,
1 9 6 0 - 8 3 , by Stephen A . Rhoades. December 1984. 30

pp. Out of print.
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: T H E TRUTH IN LENDING
AND EQUAL CREDIT OPPORTUNITY L A W S , b y G r e g o r y

E. Elliehausen and Robert D. Kurtz. May 1985. 10 pp.
145. SERVICE CHARGES AS A SOURCE OF B A N K INCOME A N D
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, 1 9 7 7 - 8 4 , b y

Thomas F. Brady. November 1985. 25 pp.
147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) INDEXES OF THE MONETARY AGGREGATES, b y H e l e n T .

Farr and Deborah Johnson. December 1985. 42 pp.
148. THE MACROECONOMIC A N D SECTORAL EFFECTS OF THE
ECONOMIC RECOVERY TAX ACT: SOME SIMULATION

RESULTS, by Flint Brayton and Peter B. Clark. December 1985. 17 pp.
149. T H E OPERATING PERFORMANCE OF ACQUIRED FIRMS IN
BANKING BEFORE A N D AFTER ACQUISITION, b y S t e p h e n

A. Rhoades. April 1986. 32 pp.
150. STATISTICAL COST ACCOUNTING MODELS IN BANKING:
A REEXAMINATION A N D AN APPLICATION, by John T.

Rose and John D. Wolken. May 1986. 13 pp.
151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRICING FROM 1 9 8 3 THROUGH 1 9 8 5 , by Patrick 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. Warshawsky.

April 1987. 18 pp.

A76

by Carolyn D. Davis and
Alice P. White. September 1987. 14 pp.

1 5 3 . STOCK MARKET VOLATILITY,

1 5 4 . T H E EFFECTS ON CONSUMERS A N D CREDITORS OF PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES, b y

Glenn B. Canner and James T. Fergus. October
1987. 26 pp.
155. T H E F U N D I N G OF PRIVATE PENSION PLANS, by Mark J.
Warshawsky. November 1987. 25 pp.
1 5 6 . INTERNATIONAL TRENDS FOR U . S . BANKS A N D B A N K -

ING MARKETS, by James V. Houpt. May 1988. 47 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.
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.
U.S. International Transactions in 1987. 5/88.
Home Equity Lines of Credit. 6/88.

All

ANTICIPATED SCHEDULE OF RELEASE DATES FOR PERIODIC RELEASES—BOARD
OF THE FEDERAL RESERVE SYSTEM1 (Payment must accompany requests.)

Weekly Releases

Annual
rate

proximate
release days

OF GOVERNORS

Date or period
to which data refer

• Aggregate Reserves of Depository Institutions and
the Monetary Base. H.3 (502) [1.20]

$13.00

Thursday

Week ended previous
Wednesday

• Actions of the Board: Applications and Reports
Received. H.2 (501)

$34.00

Friday

Week ended previous Saturday

• Assets and Liabilities of Insured Domestically
Chartered and Foreign Related Banking
Institutions. H.8 (510) [1.25]

$13.00

Monday

Wednesday, 3 weeks earlier

• Changes in State Member Banks. K.3 (615)

$13.00

Tuesday

Week ended previous Saturday

• Factors Affecting Reserves of Depository
Institutions and Condition Statement of Federal
Reserve Banks. H.4.1 (503) [1.11]

$13.00

Thursday

Week ended previous
Wednesday

• Foreign Exchange Rates. H.10 (512) [3.28]

$13.00

Monday

Week ended previous Friday

• Money Stock, Liquid Assets, and Debt Measures.
H.6 (508) [1.21]

$34.00

Thursday

Week ended Monday of
previous week

• Selected Borrowings in Immediately Available
Funds of Large Member Banks. H.5 (507) [1.13]

$13.00

Wednesday

Week ended Thursday of
previous week

• Selected Interest Rates. H.15 (519) [1.35]

$13.00

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]

$13.00

Friday

Wednesday, 1 week earlier

• 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)

$11.00

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

Monthly Releases

• 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]

9.00

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 Large
International Banking Facilities. G. 14 (416)

3.00

20th of month

Wednesday, 2 weeks earlier

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 B U L L E T I N tables that report the data are designated in brackets.




A78

Monthly Releases—Continued
• Research Library—Recent Acquisitions. G. 15 (417)

Annual
rate

Date or period
to which data refer

1st of month

Previous month

$ 3.00

3rd working day of
month

Previous month

• Agricultural Finance Databook. E.15 (125)

$ 5.00

End of March,
June, September,
and December

January, April, July, and
October

• Country Exposure Lending Survey. E.16 (126)

$ 5.00

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]

$ 4.00

March, June,
September, and
December

Previous 6 months

• Flow of Funds: Seasonally Adjusted and
Unadjusted. Z.l (780) [1.58, 1.59]

$10.00

23rd of February,
May, August,
and November

Previous quarter

• Flow of Funds Summary Statistics Z.l (788) [1.57,
1.58]

$3.00

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)

$3.00

15th of March,
June, September,
and December

Previous quarter

• Survey of Terms of Bank Lending. E.2 (111) [1.34]

$ 3.00

Midmonth of
March, June,
September, and
December

February, May, August, and
November

• List of OTC Margin Stocks. E.7 (117)

$ 5.00

January, April,
July, and
October

February, May, August, and
November

$3.00

October and April

Previous year

$1.00

February

End of previous June

• Selected Interest Rates. G.13 (415) [1.35]

Free of
charge

Approximate
release days

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
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

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 also 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

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




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 74
GUIDE TO PAGE REFERENCES
Issue

January
February....
March
April
May
June

IN MONTHLY

Text

1-78
79-150
151-194
195-278
279-360
361-402

ISSUES

"A" pages

Total
1-82
1-88
1-76
1-82
1-82
1-88

Index to
tables
83-84
89-90
77-78
83-84
83-84
89-90

Issue

July
August
September..
October
November..
December ..

Text

403-516
517-590
591-632
633-715
716-782
783-830

"'A" pages

Total
1-78
1-78
1-92
1-76
1-76
1-78

Index to
tables
79-80
79-80
93-94
77-78
77-78
79-80

The "A" pages consist of statistical tables and reference
information.

Statistical tables are indexed separately (see p. A79 of this
issue.

AGRICULTURE, loans
Amortization of losses by agricultural banks
546
Extension of comment period
Ill
American Bankers Association
364, 370, 597, 783
Angell, Wayne D.
Federal margin regulations to equities application,
statement
453
Federal Reserve System budget and expenses,
statement
437
Annual Report: Budget Review, 1987-88, publication
467
Annual Report, 74th edition, 1987, publication
467
Annual Statistical Digest, 1987, publication
791
Articles
Exchange rates, adjustment, and J-curve
633
Financial system, developments in United States . . .
1
State and local government finance in current
expansion
79
Home equity lines of credit
361
Implementing monetary policy
419
Innovation and regulation of banks in 1990s
783
International transactions of United States in 1987 . 279
Monetary policy report to Congress
151,517
Pension plans: funding, assets, regulatory
environment
717
Personal bankruptcies
591
Profitability of insured commercial banks in 1987 . . . 403
Recent behavior of demand deposits
195
Treasury and Federal Reserve foreign exchange
operations
109, 430, 645
Audits, banking organizations
35
Automated clearing house mechanism, operational
changes
110
Automated currency-processing equipment, contract
39

Bank Holding Company Act of 1956—Continued
Orders issued under
A & P Holding Co
Abbott Bank Group, Inc
Abington Bancorp, Inc
Affiliated Banc Corporation
Affiliated Banc Group, Inc
Affiliated Bank Corporation of Wyoming
Alabama Bancorp
Albright Bancorp, Inc
Alliance Bancorporation
Algemene Bank Nederland, N.V., Amsterdam,
The Netherlands
Alta Vista Bancshares, Inc
Ameribanc, Inc
American Bancorporation
American Interstate Bancorporation, Inc
Ameritrust Corporation
AmeriTrust Corporation
Ameritrust Indiana Corporation
AmSouth Bancorporation
Amsterdam-Rotterdam Bank, N.V., Amsterdam,
The Netherlands
AN B Corporation
Anmer Corporation
273,
Apple Bancorp, Inc
Apple Creek Banc Corp
Arrow Bank Corp
Ashton Bancshares, Inc
Aspen Bank Shares, Ltd
Associated Acquisition Corporation
Associated Banc-Corp
A T Acquisition Corporation
Athens Bancorp, Inc
Atlantic Bancorporation
Aylworth Proprietary Limited, Melbourne,
Australia
Baden Bancorp, Inc
Baer Holding Ltd., Zurich, Switzerland
Ballston Bancorp, Inc
Banco Bilbao-Vizcaya, S.A., Bilbao, Spain
Banc One Corporation
174, 273,
Bancorp New Jersey, Inc

BANK for International Settlements
213
Bank holding companies (For orders issued to individual
companies under the Bank Holding Company Act,
see Bank Holding Company Act of 1956)
Grandfathered nonbank banks, amendment . . . 537, 752,
760
Bank Holding Company Act of 1956
Amendment of 1970
21, 92




69
187
144
586
830
171
829
144
511
505
780
711
189
144
69
341
69
277
148
710
111
Ill
188
145
Ill
396
145
145
69
Ill
70
275
625
628
494
683
515
396

All

Federal Reserve Bulletin • December 1988

Pages
Bank Holding Company Act of 1956—Continued
Orders issued under—Continued
BancSecurity Corporation
586
Bancshares of Dyer, Inc
711
Bank Corporation of Georgia
399
Bankers Trust New York Company
695
Bankfirst Corp
70
Bank Maryland Corp
339, 777
Bankmont Financial Corp
70
Bankmont Financial Corporation
628
Bank of Boston Corporation
276, 699
Bank of Montreal, Montreal Quebec, Canada . .70, 628
Bank of Montreal, Toronto, Canada
500
Bank of New England Corporation
133, 700
Bank of New York Company, Inc
257
Bank of Nova Scotia, Toronto, Canada
249
Bank of Seoul, Seoul, Korea
684
Bank of Tokyo, Tokyo, Japan
628
Bank of Tokyo, Ltd., Tokyo, J apan
685
Bankshares Corporation of Niceville
711
Bank Shares Incorporated
586
Banks of Iowa, Inc
511
Bank South Corporation
145, 399, 626, 710
Bank South Pensacola, Inc
626
Bankworcester Corporation
70
Barnett Banks, Inc
188, 710, 111
Bath State Bancorp
396
BBOK Bancshares, Inc
711
BCB Financial Services Corporation
70
Berthoud Bancorp Employee Stock Ownership
Plan
70
Beverly Bancorporation, Inc
396, 829
Blue Rapids Bancshares, Inc
145
B.M.J. Financial Corp
626
BMR Bancorp, Inc
70
BNB Holding Company, Inc
777
Boatmen's Bancshares, Inc
821
BOL Bancshares, Inc
171
Boston Private Bancorp, Inc
145
Boulevard Bancorp, Inc
146
Bremer Financial Corporation
589
Britt Bancshares, Inc
626
Bryn Mawr Bank Corporation
329
BSB Bancorp, Inc
711
BSD Bancorp, Inc
399
Buffalo Bancshares, Inc
396
Burkburnett Bancshares, Inc
586
276
Business Bancorp
B/W Bancshares, Inc
339
C & L Banking Corporation
70
Cadiz Bancorp, Inc
339
Calhoun Bankshares, Inc
586
Canadian Imperial Bank of Commerce, Toronto,
Canada
571
Capac Bancorp, Inc
145
Capital Bancshares, Inc
711
Capital Directions, Inc
273
Capron Bancorp, Inc
339
Cardinal Bancorp II, Inc
132
Cardinal Bancshares, Inc
70, 626
Carlson Bankshares, Inc
277
Cascade State Corp
339
Casey County Bancorp, Inc
586
Catherine Stuart Family Partnership
400
CB&T Bancshares, Inc
273, 626, 710
CBS Bancshares, Inc
829
CBTC Holding Company, Inc
48
Cedar Financial Holding, Inc
829
CeeBee Corporation
339
Centennial Bancshares Corporation
511
Centerre Bancorporation
74, 136
Central Bancorp, Inc
586
Central Bancshares of the South, Inc
188




Pages
Bank Holding Company Act of 1956—Continued
Orders issued under—Continued
Central Bank Shares, Inc
586
Central of Kansas, Inc
273
Central West Bancorporation
711
Century Financial Corporation
274
Cenvest, Inc
807
Chase Manhattan Corporation
391,704
Chattahoochee Bancorp, Inc
832
Chemical Financial Corporation
188
Chemical New York Corporation
393
Cheshire Financial Corporation
511
Chester County Bancshares, Inc. II
145
Chillicothe Bancshares, Inc
70
Citizens and Southern Corporation
330, 710
Citizens and Southern Georgia Corporation
330
Citizens Bancgroup, Inc
145
Citizens Bancorp
711
Citizens Bancorp of Delavan Inc
145
Citizens Bancshares Corporation
777
Citizens Bancshares of Beebe, Inc
396
Citizens Financial Corporation Employee Stock
Ownership Plan and Trust
70
Citizens Financial Group, Inc
396, 496
Citizens Financial Holdings, B.V., Amsterdam,
Netherlands
275
Citizens Holdings
274
Citizens National Bancorp, Inc
396
Citizens National Bank Corporation
586
Citizens State Bancorp, Inc
711
City Financial Bancorp, Inc
384
City Holding Company
586, 777
City National Bancorporation, Inc
396
Clarkfield Bancshares, Inc
Ill
Clifton Bancshares, Inc
829
Clyde Financial Corporation
711
CNB Bancorp, Inc
70, 274
CNB Bancshares, Inc
511
CNB, Inc
396
Colorado Western Bancorp, Inc
626
Columbia Bancorp
397
Comerica Incorporated
59, 190, 809
Comm. Bancorp, Inc
188, 711
Commerce Bancorp, Inc
711, 829
Commerce Bancshares, Inc
397
Commercial Bancorp of Georgia, Inc
511
Commercial Bancshares, Inc
780
Commercial Bank Shares, Inc
145
Commercial National Financial Corporation
339
Commex Financial Corporation
711
Commonwealth Bankshares, Inc
711
Community Banc, Inc
397
Community Bancorp, Inc
274
Community Bancshares of Alva, Inc
397
Community Bankers, Inc
511, 586
Community Bank System, Inc
711
Community Financial Corporation
397
Community First Financial, Inc
511
Community Group, Inc
148
Community National Bancorp, Inc
397
ComSouth Bankshares, Inc
188
Constellation Bancorp
780
Constitution Bancorp of New England, Inc
394
Cook Investment, Inc
74
Cooper Lake Financial Corporation
511
CoreStates Financial Corp
276, 815
Costa Mesa Holding N.V., Curacao,
Netherlands Antilles
275
Costa Mesa Limited, London, England
275
County Bancorporation, Inc
829
C.P. Burnett & Sons, Inc
274
Credit Lyonnais, Paris, France
780
CSB Bancshares, Inc
146

Index to Volume 74

Pages
Bank Holding Company Act of 1956—Continued
Orders issued under—Continued
Cumberland Valley Bancshares, Inc
75
Dacotah Bank Holding Co
831
Dahlonega Bancorp, Inc
829
Dakota Bankshares, Inc
74
Dakota Company, Inc
829
Danville Bank Corp
512
Danville Bancshares, Inc
626
DB Holding Company, Inc
512
711
Delaware Bancshares, Inc
Delhi Bancshares, Inc
714
Delmar Bancorp
397
Delta Bancshares Company
512
Deposit Guaranty Corporation
510
DG Bancshares, Inc
566
Dime Financial Corporation
811
Dominion Bankshares Corporation
145, 274, 339
Douglas County Bancshares, Inc
512
DSB Bancshares, Inc
512
Dublin Bancshares, Inc
70
Duco Bancshares
145
Eastcorp, Inc
339
Eastern Bancshares, Inc
712
Eastern Iowa Bancshares, Ltd
777
Eastern Michigan Financial Corporation
49
Eastern Wisconsin Bancshares, Inc
586
Eastland Financial Corp
512
Eastland Savings Bank
512
Edgewood Bancshares, Inc
778
1889 Bankcorp
625
Eldorado Bancorp
70
Elkcorp. Inc
70
Embry Bankshares, Inc
70
ENB Financial Corporation
397
ENB Holding Company
70
E.N.B. Holding Company, Inc
829
Enterprise Bancorp
188
Equimark Corporation
61
Eufaula BancCorp, Inc
712
Excel Bancorp, Inc
512
Exchange International Corporation
188
F & M Bancorporation, Inc
587
F & M Financial Services Corporation
70
F & M National Corporation
512, 830
Fairland Holding Company, Inc
397
Family Bancorp
626
Farmers and Traders Bancshares, Inc
778
Farmers Bancshares, Inc
339
Farmers National Bancorp of Cynthiana, Inc
512
FarmMerc, Inc
512
Farmers State Holding Company
274
Fentura Bancorp, Inc
188
177, 251
FFB, Inc
FGC Holding Company
145
Fidelity Bancshares, Inc
829
Fidelity BancShares (N.C.), Inc
274
Fidelity Company
340
Fifth Third Bancorp
70, 340, 397, 712
FIH, L.P
145
FIH, Inc
145
First & Peoples Bancshares, Inc
829
First Affiliated Bancorp, Inc
626
First Alabama Bancshares, Inc
510
First Alma Bancshares, Inc
397
1st American Bancorp, Inc
70
First American Bancshares of Blooming Prairie,
Inc
712
First American Bank Corporation
342, 399, 714
First American Corporation
145, 397, 567
First Bancorp Inc
778
First Bancorp, Inc
397




A83

Pages
Bank Holding Company Act of 1956—Continued
Orders issued under—Continued
First Bancorp of Louisiana, Inc., Employee
Stock Ownership Plan
274
First Bancorp of Tonkawa, Inc
74
First Bancorporation of Holdenville, Inc
778
First Bancorporation of Ohio
817
First Bancshares, Inc
244
Firstbank Holding Company of Colorado
510, 710
First Bank System, Inc
74, 148, 246,
515, 628, 689, 824
First Business Bancshares of Kansas City, Inc. . . . 71
First Canyon Bancorporation, Inc
146
1st Carolina Bancshares, Ltd
778
First Chicago Corporation
706, 708
First Cicero Banc Corporation
146
First City Acquisition Corporation
336
First City Bancorp, Inc
512
First City, Inc
71
First Colonial Bankshares Corporation
626
First Colony Bancshares, Inc
397
First Commerce Corporation
274
First Commercial Bancshares, Inc
340, 626
First Commercial Corporation
146
First Community Bancshares, Inc
188
FirstCommunity Bankshares, Inc
778
First Corporation
397
First Cumberland Bank
75
First Delhi Corporation
146
First Dubuque Corp
397
First Eastern Corporation
190,512
First Empire State Corporation
71
First Executive Bancorp, Inc
829
First Express of Nebraska, Inc
586
First Farmers Financial Corporation
274
First Financial Bancorp
586
First Financial Corporation
71,626
First Financial Corporation of America
586
First Financial Services of Moose Lake, Inc
342
First Florida Banks, Inc
510, 771
First Illini Bancorp, Inc
829
First Interstate Bancorp
331,691
First Interstate Bancorp of Colorado
510
First Interstate Bancorp of Texas
331
First Jacksboro Bancshares of Delaware, Inc
586
First Jermyn Corp
626
First Jones Bancorporation, Inc
188
First Junction City Bancshares, Inc
587
First Liberty Bancorp, Inc
146
First Litchfield Financial Corporation
626
First McAlIen International Bancshares, Inc
691
FIRST MERCHANTS CORPORATION
778
First Miami Bancorp, Inc
587
First Michigan Bank Corporation
587
First Mid-Illinois Bancshares, Inc
71
FIRST MIDWEST BANCORP, INC
712
Firstmondovi, Inc
626
FirstMorrill Co
626
First National Agency, Inc. of Cold Spring
75
First National Agency of Baudette, Inc
274
First National Bancorp, Inc
829
First National Bank of Bemidjii Employee Stock
Ownership Plan and Trust
146
First National Cincinnati Corporation
71, 146,
188, 778
First National Financial Corporation
274
First National Hayes Center Corp
71
First National Holding Company, Inc
399, 589
First National Massillon Corporation
275
First National of Nebraska, Inc
148, 778
First NH Banks, Inc
148, 714, 780
First Nokomis Bancorp, Inc
188
First of America Bancorporation-Illinois, Inc
512

All

Federal Reserve Bulletin • December 1988

Pages
Bank Holding Company Act of 1956—Continued
Orders issued under—Continued
First of America Bancorporation-Indiana
340
First of America Bank Corporation .. 71, 340, 512, 778
First Parker Bancshares, Inc
512
First Peoples Financial Corporation
71
First Peoria Corp
587
First Potomac Bancorp, Inc
587
First Security Affiliates Inc
71
First Security Bancorp, Inc
188
First Security Corporation of Kentucky
71
First Sioux Bancshares, Ltd
780
First Southern Bancorp, Inc
71
First Sterling Bancshares, Inc
778
First Sun Capital Corporation
71
First Tennessee National Corporation
342
First Union Corporation
71, 74, 188, 710
First United Bancorp, Inc
340
First United Bancorporation
397
First United Bancorporation, Inc
587
First United Bancshares, Inc
626
First United Corporation
275
First Valley BankCorp
829
First Virginia Banks, Inc
712
First Wachovia Corporation
146, 710
First Weatherford Bancshares, Inc
512
First Western Bancorporation
75
First West Virginia Bancorp, Inc
275
First Wisconsin Corporation
513, 712, 829, 830
First Woburn Bancorp, Inc
275
FKYN Acquisition Corp
830
Fleet Financial Group, Inc
62
Fleet/Norstar Financial Group, Inc
399, 778, 781,
819
Fleet/Norstar New York, Inc
781, 819
Florida National Banks of Florida, Inc
515
FMB Financial Holdings, Inc
71
F.N.B.C. of La Grange, Inc
397
FNB Financial Corporation, Knoxville,
Tennessee
587
FNB Financial Corporation, Scottsville,
Kentucky
71
FNBH Bancorp, Inc
626
Ford Bank Group, Inc
830
Forest Bancorp
778
Fort Madison Financial Company
692
Fort Worth State Bancshares, Inc
340
IV Corporate Woods Acquisition, Inc
712
Fourth Financial Corporation, Inc
397, 712
Frandsen Financial Corporation
830
Franklin Financial Services Corporation
188
Freedom Bancshares, Inc
513
Fryburg Banking Company
627
FS Bancshares, Inc
513
FSB Bancorp
275
Fulton Financial Corporation
188
FV Inc
148
F.W.S.B. Corporation
829, 830
GEBSCO, Inc
626
Georgetown Bancorp, Inc
340
G. Fields Bancshares, Inc
830
Gillespie Bancshares, Inc
627
GL & ML, Limited
780
Golden Bancorp, Inc
397
Golden Bancshares, Inc
71
Golden Summit Corporation
510
Gower Bancshares, Inc
72
Governors Bank Corporation
398
Granby Bancshares, Inc
397
Grand Bank Financial Corporation
712
Granite State Bankshares, Inc
778
Greater Pacific Bancshares
340
Great Lakes Financial Resources, Inc
830




Pages
Bank Holding Company Act of 1956—Continued
Orders issued under—Continued
Grenada Sunburst System Corporation
513
Greenwood National Bancorporation
712
Guaranty Bancshares, Inc
780
Gustine-Deleon Bancshares, Inc
627
Hancock Bancorp, Inc
587
Harris Bankcorp, Inc
70, 513
Harrison Bankshares, Inc
275
Hassenstab Management Co., Inc
779
Hasten Bancorp
627
Havana Bancshares, Inc
712
Hazard Bancorp
830
Heartland Community Bankshares, Inc
778
Heritage Bancorp, Inc
712
Heritage Enterprises II
72
Heritage Racine Corporation
146
Herky Hawk Financial Corp
146
Hickman Coloration
712
High Point Financial Corp
830
Hodco, Inc
146
Home Port Bancorp, Inc
587
Home State Bancorp, Inc
190
Homestate Bancorp, Inc
340
Hometown Bancshares, Inc
779
Hongkong and Shanghai Banking Corporation,
Hong Kong
137,589
Horizon Banks, Inc
830
HRH Bancorp, Inc
693
HSBC Holdings B.V., Amsterdam, The
Netherlands
137,589
Huntington Bancshares Incorporated
510
Huntington Bancshares Kentucky, Inc
510
H & W Holding Company
779
Illini Community Bancorp, Inc
513, 712
Independent Bancshares, Inc
398
Independent Bankshares, Inc
75
Independent Community Bancorp, Inc
275
Indiana National Corporation
712
Inland Bancorp, Inc
188
International Brotherhood of Boilermakers, Iron
Ship Builders, Blacksmiths, Forgers, and
Helpers
189
Integra Financial Corporation
774
Intrex Financial Services, Inc
72
Investers Bancorporation, Inc
587
Iowa National Bankshares Corp
830
Jackson County Bancorp, Inc
712
Jackson Hole Bancshares Corporation
398
James Stuart, Jr. Family Partnership
400
Jasand, Inc
275
Jay Financial Corporation
830
Johnson Heritage Bancorp, Ltd
712
Kanbanc, Inc
72
Kansas Banc Corporation
712
Kansas Bank Corporation
587
Kansas State Financial Corporation
146
Kellet N.V., Curacao, Netherlands Antilles . .137, 589
Kentucky Bancorporation, Inc
713
Key Bancshares of Idaho, Inc
713
Key Centurion Bancshares, Inc
398, 515
KeyCorp
713
Keystone Financial, Inc
627
Klein Bancorporation, Inc
146
Laddonia State Bancshares, Inc
72
Lafayette Bancorporation
587
La Jolla Bancorp
190
Lake City Bancorporation
275
Lamoine Bancorp, Inc
513
Landmark Acquisition Corporation
189
Landmark Acquisition Corporation II
189
Landmark Bancshares Corporation
189
Landmark/Community Bancorp, Inc
398

Index to Volume 74

Pages
Bank Holding Company Act of 1956—Continued
Orders issued under—Continued
Landmark Financial Corporation
340
Lane Financial, Inc
276
Langdon Bank Holding Company
72
Lena Spitzer Limited Partnership
714
Lewisburg Bancshares Corporation
587
Lexington Bancshares, Inc
713
Liberty National Bancorp, Inc
146, 275, 340, 587
Lincoln County Bancorp, Inc
189
Lincoln Financial Corporation
72, 275, 627
Lincoln Financial Corporation
513
Linton Bancshares, Inc
72
Litchfield Bancshares Company
72
Logan Bancshares, Inc
275
Lone Star Bancshares, Inc
627
Long-Term Credit Bank of Japan, Limited,
Tokyo,Japan
573
Longview Capital Corporation
189
Magna Group, Inc
72, 713
MAH Bancorp, Inc
779
Malta Banquo, Inc
146
Manufacturers National Corporation
515, 830
Marine Corporation
72
Marine Midland Banks, Inc
137, 589
Marion Bancshares, Inc
72
Market Place Bancshares, Inc
275
627
Market Street Bancshares, Inc
Mark Twain Bancshares, Inc
713
Marshall & Ilsley Corporation
180, 713
Maryville Bancshares, Inc
72
Mascoutah Acquisition Company
713
Mason City National Bancorp, Inc
779
Mason State Company
190
McCamey Financial Corporation
146, 627
MCB Acquisition Company
72
MCorp
139, 191, 276
MCorp Financial, Inc
191, 276
Mellon Bank Corporation
773
Menomonie Financial Services, Inc
191
Mercantile Bancorp, Inc
713
Mercantile Capital Corp
713
Merchants Bancshares, Inc
72
Merchants National Corporation
148
Meridian Bancorp, Inc
51, 515
MetroBanCorp
189
Metropolitan Bancshares, Inc
189
Miami Corporation
146
Michigan National Corporation
780
Mid-Citco Incorporated
779
Middlefield Banc Corp
587
Midland Bank, PLC, London, England
252, 577
Midlantic Corporation
147
Midlothian State Bank Employees Stock
Ownership Plan
189
Mid-Mo Bancshares, Inc
72
Midwest Bankshares, Inc
828
Midwest Financial Group, Inc
75, 513
Mid-Wisconsin Financial Services, Inc
587
Miners Bancshares, Inc
830
Minnesota-Wisconsin Bancshares, Inc
513
Minonk Bancshares, Inc
72
Mission-Valley Bancorp
830
MNC Financial, Inc
398, 515, 780
Montclair Bancorp, Inc
627
Moore Financial Group Incorporated
693
Morrill Bancshares, Inc
830
Napa Valley Bancorp
497
National Bancorp, Inc
72
National Bancshares Waupun, Inc
147
National City Bancshares, Inc
398
National City Corporation
581,830
National Community Banks, Inc
831




A85

Pages
Bank Holding Company Act of 1956—Continued
Orders issued under—Continued
National Penn Bancshares, Inc
713
National Westminster Bank PLC, London,
England
142,254
NatWest Holdings, Inc
142, 254
NBA Holding Company
627
NBB Bancorp, Inc
713
NBD Bancorp, Inc
53, 589, 629
NBD Midwest Corporation
629
NBD Northern Corporation
53
NBM Bancorp, Inc
147
NCB Corp
275
NCNB Corporation
189, 587, 618
NESB Corp
588
New Bank of Mora
72
Newberry Bancorp, Inc
398
New Financial Corporation
511
New Hampshire Savings Bank Corp
387
NewMil Bancorp, Inc
513
North Adams Bancshares, Inc
713
North Arkansas Bancshares, Inc
72
Northern Financial, Inc
72
North Fork Bancorporation, Inc
588
Northern Missouri Bancshares, Inc
340
Northern of Tennessee Corp
340
Northern Trust Corporation
333, 502
Northland Insurance Agency, Inc
72
Northwest Bancorporation Inc
627
Northwest Illinois Bancorp, Inc
627
Norwest Corporation
510, 568, 710, 777, 828
Norwest Financial Services, Inc
510
Norwich Financial Corp
627
NSB Bancshares, Inc
627
Ohio Bancorp
831
Okawville Bancshares, Inc
147
Old Kent Financial Corporation
75, 714, 781
Old National Bancorp
73, 398
Omnibancorp
511
ONB Corporation
713
One Bancorp
713
One Bancorp, Ltd
510
Orbisonia Community Bancorp, Inc
189
Ormside Proprietary Limited, Melbourne,
Australia
275
Orrstown Financial Services, Inc
275
Ostrander Bancshares, Inc
713
Otto Bremer Foundation
589, 781
Oxford Bank Corporation
398
Oxford Financial Corporation
147
Overseas Finance Holdings Proprietary Limited,
Melbourne, Australia
275
Owentown Bancorp, Inc., Employee Stock
Ownership Trust
340
Paducah Bank Shares, Inc
276
Page Holding Company
831
Park Ridge Bancshares, Inc
398
PBT Bancshares, Inc
276
Peoples Bancorp of Worcester, Inc
189
Peoples Bancorporation
147, 191, 515
Peoples Bancorporation of Northwest Iowa
513
Peoples Heritage Financial Group, Inc
513
Peoples, Inc
713
Phelps County Bank Employee Stock
Ownership Plan
588
Pikeville National Corporation
73, 588
Pioneer Bancorporation, Inc
340
Piper Bankshares, Inc
779
Plains Capital Corporation
172
PNC Financial Corp
389, 511
Pocahontas Bancorporation
779
Pocahontas Bankshares Corporation
147
Polk County Banco, Inc
73

All

Federal Reserve Bulletin • December 1988

Pages
Bank Holding Company Act of 1956—Continued
Orders issued under—Continued
Porter Bancorp, Inc
513
Portsmouth Bank Shares, Inc
189
Powell Valley Bankshares, Inc
340
Prairieland Bancorp, Inc
781
Premier Bancorporation, Inc
276
Presidential Holdings, Inc
831
Princeton National Bancorp, Inc
147
Progressive Bank, Inc
399, 515
Pro Group Inc
588
Provident Bankshares Corporation
713
P.T.C. Bancorp
779
Public National Bank Corporation
340
Putnam-Greene Financial Corporation
398
Quad County Bancshares, Inc
148
R & J Financial Corporation
515
Raymond Bancorp, Inc
513
Ready Bancorp, Inc
513
Remsen Financial Services, Inc.
514
Republic Bancorp, Inc
75, 779
RHNB Corporation
779
Richwood Bancshares, Inc
713
Riggs National Corporation
73
Riley County Bancshares, Inc
55
Rocky Mountain Bancorporation, Inc
831
Roseville Bankshares, Inc
73
Royal Bancshares, Inc
73
Royal Bank of Canada, Montreal, Canada
334
Royal Windsor Holding Corp
191
Saban, S.A., Panama City, Republic of Panama .. .499
St. Croix Banco, Inc
73
St. Croix Valley Bancshares, Inc
514
St. Joseph Bancorporation, Inc
190
Salem Bancorp, Inc
73
Salin Bancshares of North Central Indiana, Inc. . .714
Sandy Spring Bancorp, Inc
73
Sanwa Bank Limited, Osaka, Japan
399, 578
Scott Stuart Family Partnership
400
Sea Island Bankshares, Inc
276
Seaway Financial Corporation
588
Security Bancshares, Inc
147
Security Bancshares of Marion County, Inc
73
Security Bank F.M. Bank Shares
340
Security Chicago Corp
73
Security Corporation
189
Security National Corporation
514, 779
Security Pacific Corporation
75, 173, 256, 819
Security State Bancshares, Inc
147
Security Trustco, Inc
514
Selin Corporation
73, 75
7L Corporation
510, 771
Shawmut National Corporation
182
Shelby Bancshares, Inc
73
Shelby County Bancorp, Inc
714
Shelby Investments, Inc
398
Sheridan National Agency
147
Shorebank Corporation
140
Signal Bancshares, Inc
75
Sioux National Company
277
Somers Bancorporation
341
Somerset Bancshares Corporation, Inc
147
Somerset Bankshares, Inc
619
Sooner Southwest Bankshares, Inc
714
Soperton Bancshares, Inc
779
Soperton Naval Stores, Inc
779
South Alabama Holding Co., Inc
514
South Banking Company
73
South Dakota Bancorp, Inc
829
Southeast Banking Corporation
147
Southeastern Bancorp, Inc
714
Southern Bancorp, Inc
514
Southern Bankshares, Inc
514




Pages
Bank Holding Company Act of 1956—Continued
Orders issued under—Continued
Southern Development Bancorporation, Inc
399
Southern Michigan Bancorp, Inc
781
South Holland Bancorp, Inc
341
Southold Bancorp, Inc
276
Southside Bancshares Corp
588
SouthTrust Corporation
56, 73, 189, 341, 588
SouthTrust of South Carolina, Inc
779
SouthTrust of Tennessee, Inc
779
Southwest Financial Group of Iowa, Inc
147
Southwest Missouri Bancorporation, Inc
514
Sovran Financial Corporation
75, 399, 504
SPC/RAB Acquisition Corporation
75
Spring Rivers Bancshares, Inc
588
State Bancorp, Inc
831
State Bancshares, Inc
341
Stockton Bancshares, Inc
341, 831
Stuart Family Partnership
400
Suburban Bancorp, Inc
627
Sullivan BancShares, Incorporated
779
Sumitomo Bank, Limited, Osaka, Japan
147
Summit Bancorporation
73, 831
Sun Banks, Inc
390
SunTrust Banks, Inc
256, 390, 710
Sunset Commercial Corporation
779
Suwannee Valley Bancshares, Inc
147
S.Y. Bancorp, Inc
398
Sysco Financial, Inc
831
T&C Bancorp, Inc
276
Taiyo Kobe Bank, Ltd., Kobe, Japan
621
Taylor Bancshares, Inc
514
Telluride Bancorp, Ltd
779
Terrabank Holding Corporation
779
Terre DuLac Bancshares, Inc
628
Thomas Drilling Company
190, 191
Thomson Holdings, Inc
398
Throckmorton Bancshares, Inc
779
TJM Financial Corporation
74
Toyo Trust and Banking Co., Ltd., Tokyo,
Japan
623
Town & Country Bancorporation, Inc
780
TraCorp, Inc
714
Traer Shares, Inc
341
Tripoli Bancshares, Inc
628
Tri-County Bancshares, Inc
780
Tri-State Financial Bancorp, Inc
247
Trustcorp, Inc
74, 190, 507, 781
Trustcorp of Michigan, Inc
74
TSB Bancorp, Inc
514
Two Rivers Corporation
628
UNB Corp
514
Union of Arkansas Corporation
695
Union Planters - CBC Bancorp Acquisition
Company
341
Unibancorp, Inc
276
Union Bancshares, Inc
514
Union Financial Corporation
514
Union of Arkansas Corporation
510
Union Planters Corporation
147, 341, 628, 831
Union State Bancshares, Inc
328
United Bankshares, Inc
341
United Community Corporation
74, 515
United Jersey Banks
148
United National Bancorp
588
United New Mexico Financial Corporation
147
University National Bankshares, Inc
780
Upbancorp, Inc
588
UP Financial, Inc
147
USA Bancorp, Inc
341
U. S. Bancorp
588, 813
Valley Bancorporation
780
Valley Bank Services, Corp
831

Index to Volume 74

Pages
Bank Holding Company Act of 1956—Continued
Orders issued under—Continued
Valley Bancshares, Inc
Valley Bank Shares, Inc
Valley National Corporation
Valley Ridge Financial Corp
Vista Bancorp, Inc
Vista Bancorporation
Vogel Bancshares, Inc
Volunteer State Bancshares, Inc
Walhalla Bank Holding Company
Warren Bancorp, Inc
Warrior Bank Corporation, Inc
Washburn Bancshares, Inc
Washington Commercial Bancorp
Waterloo Bancshares, Inc
Water Tower Bancorp, Inc
Wathena Bancshares, Inc
Waymar Bancorporation
W B BANCORP, INC
Weld State Company
Wesbanco, Inc
Westbank Financial Corporation
West Coast Bancorp, Inc
Wes-Tenn Bancorp, Inc
Western Illinois Bancorp, Inc
Western Iowa Consultants, Inc
West Iowa Banc Corp
Westpac Banking Corporation, Sydney,
Australia
Wheeler Bancshares, Inc
Will Bancorp, Inc
Whitaker Bancorp, Inc
Whitley City Bancshares, Inc
Workingmens Corporation
Wright Bancgroup Company
W.T.B. Financial Corporation

147
189, 191
57
831
514
831
780
628
74
714, 831
398
74
831
831
148
714
399
398
714
510
148
341
190
770
514
399

Bank Holding Company Supervision Manual:
Supplement 1
Banking supervision and regulation (See Supervision
by Federal Reserve System)
Banking system conditions, statement
Bank Merger Act
Orders issued under
ACB Bank
Bank of Ripley
Bank One, Mansfield
76,
Central Bank
Central Bank of the South
Chemical Bank and Trust Company
Chemical Bank Bay Area
76,
Citizens Bank
Citizens Bank and Trust Company
342,
Citizens Trust and Savings Bank
Columbian Corporation
Comerica Bank-Detroit
Commercial Bank of Champaign
Commercial Bank
Commercial Savings Bank
Commonwealth Bank
County Bank Corp
F & M Bank-Martinsburg, Inc
Farmer & Merchants Bank and Trust Company ..
Farmers State Bank of Alpha
Fayette County Bank
First City Bank of Dallas
First Community Bank-Adrian Buckhannon,
Inc
First Community Bank, Inc
First Interstate Bank of California
First Nebraska Bank
First of America Bank—Straits Area




714
399
190
190
74
514
628
398
381
458
192
782
629
400
76
192
342
589
589
76
589
76
342
76
400
400
149
516
211
277
589
832
76
782
585
192
192

A87

Pages
Bank Merger Act—Continued
Orders issued under—Continued
First Trust and Savings Bank of Kankakee
149
First Virginia Bank-South Central
832
Interstate Bank North
589
Johnstown Bank and Trust Company
76
New Bank
715
Newco Bank
76
Norstar Bank
782
Old Kent Bank and Trust Company
76
Old Kent Bank of Kalamazoo
400
Peoples Bank of Bloomington
76
Ranson Iterim Bank, Inc
832
Richwood Interim Bank
715
State Bank of Freeport
76
Sovran Bank/Central South
629
Toledo Trust Company
192
United Jersey Bank
715, 782
Valley Bank and Trust Company
149
Valley Bank of Nevada
67
Bankruptcies, personal, article
591
Bankruptcy Act of 1898
592
Bankruptcy Reform Act of 1978
593
Bank Service Corporation Act
Orders issued under
National Bank of Commerce of Mississippi
343
SunTrust Service Corporation
149
Basle Committee
317
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
Announcement of commendation to task force
on market mechanisms
167
LaWare, John P., appointment as member
614
List, 1913-88
630
Policy statements (See specific subject)
Publications and releases (See Publications in 1987)
Regulations (See Regulations)
Rules (See Rules)
Staff
Changes
Cole, Roger T
653
Cornyn, Anthony
615
DiGioia, Anthony V
168
Enzler, Jared J
752
Fox, Lynn Smith
653
Greene, Mark N
752
Hayes, Joseph H., Jr
168
Horowitz, Fred
168
McEntee, Elliott
791
Malphrus, Stephen R
791
Weis, JohnR
168
List
A70
Staff studies (See Staff Studies)
Statements to Congress (See Statements to
Congress)
Thrift Institutions Advisory Council (See Thrift
Institutions Advisory Council)
Bradfield, Michael, statement
450
Brady Task Force
448, 449
Branch banks, New York
424, 444
Brimmer and Company, Inc
596
Budget deficit, long-term policy to reduce, statement
293
Bureau of Engraving and Printing
444

All

Federal Reserve Bulletin • December 1988

Pages
CANADIAN Government securities
451
Canner, Glenn B., article
361
Capital Adequacy Guidelines
Proposal for revised risk-based guidelines for U.S.
banking organizations
317
Risk based framework, statement on development . 376
Chandler Act
593
Check clearing and collection (See Fees and Float)
Chicago Board of Trade
457
Chicago Mercantile Exchange
456
Citizens Guide to CRA, publication
311
Cole, Roger T., appointed Assistant Director,
Division of Banking Supervision and Regulation . . . 653
Commercial banks, profitability of insured
commercial banks in 1987, article,
403
Commodity Futures Trading Commission
101, 454
Commodity prices role in international coordination
of economic policy, statement
103
Community Affairs Program
309
Community Reinvestment Act (CRA), statements
307,
733
Competitive Equality Banking Act of 1987
Grandfathered nonbank banks
Hearing
615
Regulation Y, amendment
752, 760
Compliance Examination Program
308
Comptroller of the Currency
33, 317, 735
Congressional Budget Office
293
Consumer Advisory Council
Appointment of new members
106
Endorsement
29
Listings
741, A73
Meetings
232, 536, 752
Nominations sought for appointment of new
members
467
Consumer Bankers Association
362, 370, 373
Consumer credit (See also Credit)
Publications available
536
Consumer Credit Protection Act
467
Controlling Risk in the Payments System,
publication
614
Cornyn, Anthony, Assistant Director, Division of
Banking Supervision and Regulation, resignation . . .

615

Country Exposure Lending Survey,
408
Credit (see also Loans)
Home equity lines
27
Stock market (See Over-the-counter stocks list
of marginable, and Regulations T and U )
Truth in lending (See Regulation Z)
Credit Practices Rule (See also Regulation AA)
California exemption
617
Staff guidelines update, revision
615, 617, 653
Credit Union National Association
370
Criminal misconduct in financial institutions,
statement
31
Cross, Sam Y„ reports
14, 209, 430, 645
DEMAND deposits, developments, article
Demand deposit model
Demand Deposit Ownership Survey
Depository institutions (See also specific types)
Reserve requirements (See Regulation D)
Depository Institutions Act of 1988, H.R. 5094,
statements
733, 743,
Deregulation and Monetary Control Act
DiGioia, Anthony V., appointed Assistant Director,
Division of Human Resources Management
Directors, Federal Reserve Banks and Branches, list . . .
Discount rates at Reserve Banks (See Interest rates)
EARNINGS and expenses (See Income and
expenses)
Earnings credit rate



195
205
199

746
5
168
345

198

Pages
Economic and financial developments (See Monetary
policy)
Economic situation, outlook for 1988, statement
301
Employee Retirement Income Security Act of 1974
(ERISA)
719
Enhanced Structural Adjustment Facility
298
Enzler, Jared J., Associate Director, Division of
Research and Statistics, resignation
752
Equal Credit Opportunity Act
310, 742
Examination Council, White Collar Crime course
35
Exchange Stabilization Fund
213
Expenses (See Income and expenses)
Expedited Funds Availability Act
Regulation CC to conform the definition of
"paying bank", amendment
653, 790, 796
Regulation to carry out provisions, proposal . . . 111,547
Schedule of availability of funds, pamphlet
published
752
Standards for state or federal law
797
Title IV of H.R. 5094
742
FARM Credit Administration
31
Farming (See Agriculture)
Federal Bureau of Investigation
31-37
Banking agency bank fraud course
35
Field Office Information Management System
36
Federal Advisory Committee
A72
33, 317, 405
Federal Deposit Insurance Corporation
Federal Home Loan Bank Board
33, 103
Federal Home Loan Mortgage Corporation
10
Federal margin regulations, application to equities,
statement
453
Federal National Mortgage Association
10
Federal Open Market Committee
Members and Officers
A72
Policy actions, record .. 40, 112, 234, 318, 468, 538, 654,
754
Federal Reserve Act
26
Federal Reserve and Treasury foreign exchange
operations (See Foreign exchange operations)
Federal Reserve Banks
Branches (See Branch banks)
Directors, list
345
Discount rates (See Interest rates)
Fees (See Fees for Federal Reserve services to
depository institutions)
Income and expenses
167
Federal Reserve Board (See Board of Governors)
Federal Reserve System (See also Board of
Governors)
Expenses, statement
400
Membership, admission of state banks . . . I l l , 169, 233,
317, 382, 467, 537, 653, 753, 791
Fees for Federal Reserve services to depository
institutions
Check clearing and collection
Same day payment for checks, proposal and
extension
382, 615
Priced services
Annual report on operations issued
381
New prices and deadlines for returned check
services, approval
536
New schedules
38, 790
Returned check services offered by banks to
depository institutions
494
Federal Savings and Loan Insurance Corporation
5
Fergus, James T., article
361
Financial Accounting Standards Board (FASB)
721
Financial Institutions Regulatory and Interest Rate
Control Act
438
Financial Modernization Act
747, 751
Financial Services Oversight Act
101
Financial Services Oversight Commission
101

Index to Volume 74

Pages
Financial Services, survey on uses by small business
652
Financial System, U.S., developments, article
1
Financial Modernization Act of 1987
91, 96, 101, 786
Financing (See specific subject)
Float, same day payment for checks, proposal
382
Foreign exchange operations of Treasury and
Federal Reserve, reports
14, 209, 430, 645
Foreign sovereign debt securities to be marginable . . . 653
Fox, Lynn Smith, Special Assistant to the Board,
resignation
653
Free Trade Agreement (FTA) between the U.S. and
Canada
450
Full Employment and Balanced Growth Act of 1978
(See also Monetary policy: reports to Congress) . . . 105,
151, 517
Funds, schedule of availability, pamphlet published .. 752
GARN-ST GERMAIN Act of 1982
744, 745
General Capital Increase
299
Glass-Steagall Act, statements .. 20-27, 91-103, 450, 747,
748, 751, 785
Government finance in the current expansion, article
79
Government National Mortgage Association
10
Gramm-Rudman-Hollings legislation
295
Greene, Mark N., Assistant Director, Division of
Research and Statistics, resignation
752
Greenspan, Alan
Statements
Commodity prices, role in international
coordination of economic policy
103
Depository Institutions Act of 1988, H.R. 5094 .. 746
Economic situation, outlook for 1988
301
Financial market; report to the President
445
Innovation and regulation of banks in 1990s
783
Modernization of financial system; GlassSteagall Act
20, 91
Monetary policy and economic-financial
situation
225, 607
October market crash, initiatives to strengthen
financial markets
312
Reducing budget deficits, long-term policy
293
Response.to October crisis
217
Group of Seven, statement
212
Guide to Business Credit and the Equal Credit
Opportunity Act, publication
310
HAYES, Joseph H., Jr., appointed Assistant
Director, Division of Human Resources
Management
Heller, H. Robert
Criminal misconduct in financial institutions,
statement
Depository Institutions Act of 1988, insurance
provisions, statement
Implementing Monetary Policy, article
Nation's banking system, statement
Home equity lines of credit
Article
Statement
Home Mortgage Disclosure Act
Cited
Housing and Community Development Act of
1987, revision to incorporate amendments
Revision to Regulation C to expand coverage
Horowitz, Fred, appointed Assistant Director,
Division of Human Resources Management
Houpt, James V., staff study
House Government Operations Committee
Housing and Urban Development, Urban
Development Action Grant
Humphrey-Hawkins Act (See Monetary policy:
reports to Congress)




168
31
743
419
458
361
27
311
664
652
168
289
26
736

A89

Pages
INCOME and expenses, Federal Reserve Banks
Preliminary figures released,
167
Industrial production, releases . 18, 89, 165, 215, 291, 374,
534, 604, 650, 731, 788
Interagency Bank Fraud Enforcement Working
Group
31
Internal Revenue Service
721
International Bank Act
438
International banking trends for U.S. banking
markets, staff study
289
International debt, statement
297
International Lending Supervision Act of 1983
378
International Monetary Fund
103, 298, 790
International transactions of the United States in
1987
279
Interest rates
Increase in discount rate of the Federal Reserve
Banks
652, 663
J-CURVE, article
Johnson, Manual H.
International debt, statement
Title IV of H.R. 5094 and the Community
Reinvestment Act, statement

633

733

KELLEY, Edward W., Jr.,
Statement on Federal Reserve System's budget
and expenses

437

297

LA WARE, John P., appointment as member, Board
614
of Governors
Legislation (See subject or specific name of act)
Litigation, cases pending involving Board of
Governors . . . 77, 149, 192, 277, 343, 401, 516, 590, 629,
715, 782, 833
Loans (See Credit)
Agricultural (See Agriculture)
Long-term debt securities, amendment to extend
"good faith" loan value
679
Luckett, Charles A.
Home equity lines of credit, article
361
Personal bankruptcies, article
591
MAHONEY, Patrick I., article
195
Malphrus, Stephen R., promotion to Deputy
Executive Director, Office of Executive Director
for Information Resources Management
791
Margin requirements
Buy-ins of securities, extension of 30-day period,
amendment
384
Over-the-counter stocks (See Over-the-counter
margin stocks, list)
168,382,615,791,793
Rules Regarding Delegation of Authority,
amendment to conform to Regulations G, T, and
U
566
McEntee, Elliott, Associate Director, Division of
Federal Reserve Bank Operations, resignation
791
Mclntire School of Commerce, University of
Virginia, Center for Financial Services Studies
373
McLaughlin, Mary M., article
403
Meade, Ellen E., article
633
Melick, William R., article
279
Member banks (See State member banks and
Depository institutions)
Mergers, Bank Merger Act (See Bank Merger Act)
Mexico, economic measures announcement
790
Michigan, University of, Survey Research Center
372
Monetary Control Act
437, 438
Monetary policy
Article on implementation
419
Reports to Congress
105, 151, 517
Statement
225, 607

All

Federal Reserve Bulletin • December 1988

NATIONAL Electronic Payments Corporation
Neighborhood Housing Services (NHS)
Neighborhood Reinvestment Corporation

Pages
101
309, 737
309

OCTOBER market crash, initiatives to strengthen
financial markets
312
Over-the-counter stocks, list of marginable,
revisions
168, 382, 615, 791, 793
PAYMENTS mechanism and systems (See Fees and
Transfers of funds)
Pension plans, article
717
Pension Benefit Guaranty Corporation
717
Presidential Working Group on Financial Markets
453
Pricing of Federal Reserve services (See Fees for
Federal Reserve services to depository
institutions)
Pricing Policy Committee, appointment of Chairman
109
Production, industrial (See Industrial production)
Publications in 1988
Annual Report, 74th edition, 1987
467
Annual Report: Budget Review, 1987-88
437, 467
Annual Statistical Digest, 1987
791
Bank Holding Company Supervision Manual:
Supplement 1
381
Citizens Guide to CRA
311
Consumer's Guide to Mortgage Closings
536
Consumer's Guide to Mortgage Refinancing
536
Consumer's Guide to Mortgage Lock-ins
536
Controlling Risk in the Payments System
614
Guidelines for real estate appraisal policies and
review procedures
381
Guide to Business Credit and the Equal Credit
Opportunity Act
310
List of Marginable OTC Stocks, revisions
168, 382,
615, 791, 793
Regulatory Service, new handbook
614
Schedule of Availability of Funds
752
Staff studies (See Staff studies)
Strategic Plan for Managing Risk in the Payments
System
615
Purdue University
596
REAL Estate Reform Act of 1987 (H.R. 3675),
statement
Recognition Equipment, Inc
Regulation of banks in the 1990s, article
Regulations (Board of Governors, See also Rules)
A, Extensions of Credit by Federal Reserve Banks
Discount rate increase, amendment
B, Equal Credit Opportunity
Proposed revision
Revision to staff commentary regarding
consideration of age in evaluating
creditworthiness
C, Home Mortgage Disclosure
Home Mortgage Disclosure Act
Amendment issued for comment
Housing and Community Development Act of
1987, revision to incorporate amendments
from
652,
D, Reserve requirements of depository institutions
Amendment rescinding obsolete published
interpretations
Short-term loan made under long-term lending
commitments, amendment
E, Electronic Fund Transfers
Proposed revision
Revision to staff commentary regarding
point-of-sale/automated clearinghouse services .
F, Securities of State Member Banks
Amendment to file information on forms
prescribed by Securities and Exchange




304
39
783
663
Ill
317
467
664
121
545
Ill
317

Pages
Commission
128
G, Securities Credit by Persons other than
Banks, Brokers, or Dealers
List of OTC Marginable Stocks, additions and
deletions
793
H, Membership of State Banking Institutions in
the Federal Reserve System
Amendment to file information on forms
prescribed by Securities and Exchange
Commission
128
Competitive Equality Banking Act, amendment
to implement Title VIII regarding amortizing
losses on agricultural loans
546
Public access to financial information regarding
state member banks, proposed action
536
J, Collection of Checks and Other Items and Wire
Transfers of Funds by Federal Reserve Banks
Expedited Funds Availability Act of 1987
547
K, International Banking Operations
Amendment to permit investments abroad
through debt-for-equity swaps
232, 243
Q, Interest on Deposits
Amendment rescinding obsolete published
interpretations
121
T, Margin Credit Extended by Brokers and
Dealers
Broker-dealers to help employees exercise stock
options, amendment
110,129
Foreign sovereign debt securities to be
marginable
Amendment
653, 679
Proposal
382
List of OTC Marginable Stocks, additions and
deletions
793
U, Credit by Banks for the Purpose of Purchasing
or Carrying Margin Stocks
List of OTC Marginable Stocks, additions and
deletions
793
X, Borrowers of Securities Credit
List of OTC Marginable Stocks, additions and
deletions
793
Y, Bank Holding Companies and Change in Bank
Control Act
Limitations placed on grandfathered nonbank
banks
Amendment
752, 760
Proposed action
537
Z, Truth in Lending
Amendment regarding adjustable-rate mortgage
caps
38, 47, 110, 130
Closed-end adjustable rate mortgages, proposed
action
752
Home equity lines of credit
28
Preemption determination, Indiana state law
244
Proposed revision
Ill
Revision to staff commentary regarding
conversion features in adjustable-rate
mortgages
317
AA, Unfair or Deceptive Acts or Practices
Credit Practices Rule, staff guidelines update,
revision
615, 617, 653
CC, Availability of Funds and Collection of
Checks
Delayed disbursement practices, restrictions,
proposed action
537
Endorsement standards appendix, approved . 381, 383
Expedited Funds Availability Act, regulation
issued
466, 475
"Paying Bank" definition to conform with
Expedited Funds Availability Act
653, 796
Standards for state law or federal law
797
Uniform Commercial Code, New York, and
Illinois law
679

Index to Volume 74

Pages
Reserve requirements
Increase in transaction accounts and liabilities
Right to Financial Privacy Act
Rubin, Laura S., article
Rules (See also Regulations)
Regarding availability of information
Proposed amendment regarding release of
reports of examination
Regarding delegation of authority
Buy-ins of securities, extension of 30-day
period, amendment
Cease-and-desist orders, authorization for
Federal Reserve Banks to stay, modify,
terminate, or suspend
Oaths and affirmations to be administered by
Board's General Counsel, amendment
Revision to make regulation conform to
Regulations G, T, and U, amendment
Stay request denials by the Board's General
Counsel, amendment
Temporary director interlocks authority to grant
requests for, amendment
Titles of Board Officials, changes, amendment

109
34
79

34
384
327
327
566
132
384
48

SECURITIES (See specific types)
Securities and Exchange Commission
97-101,454
Securities dealers, supervisory policy statement
issued
381
Securities Exchange Act of 1934
454
Seger, Martha R.
Community Reinvestment Act, statement
307
Home equity lines of credit, statement
27
Simpson, Thomas D., article
1
Small Business Administration
736
Staff studies
International banking trends for U.S. banks and
banking markets
289
State member banks
Capital adequacy (See Capital adequacy)
Membership in Federal Reserve System (See
Federal Reserve System)
Mergers (See Bank Merger Act)
Statements to Congress (including reports and
letters)
Banking system conditions (Governor Heller)
458
Capital adequacy guidelines, development of risk
based framework (William Taylor, Staff
Director, Division of Banking Supervision and
Regulation)
376
Community Reinvestment Act (Governor Seger) . . . 307
Community Reinvestment Act and Title IV of
H.R. 5094 (Vice Chairman Johnson)
733
Criminal misconduct in financial institutions
(Governor Heller)
31
Depository Institutions Act of 1988
Competition and concentration of resources,
implications (Chairman Greenspan)
746
Insurance provisions (Governor Heller)
743
Economic situation, outlook for 1988 (Chairman
Greenspan)
301
Federal margin regulations applied to equities
(Governor Angell)
453
Federal Reserve System, 1988 budget and
expenses (Governors Angell and Kelley)
437




A91

Pages
Statements to Congress—Continued
Financial markets, report to the President
(Chairman Greenspan)
445
Financial system modernization; Glass-Steagall
Act (Chairman Greenspan)
20
Free trade agreement between United States and
Canada (Michael Bradfield, General Counsel,
Board of Governors of the Federal Reserve
System
450
27
Home equity lines of credit (Governor Seger)
297
International debt (Vice Chairman Johnson)
Monetary policy and economic-financial situation
(Chairman Greenspan)
225, 607
October market crash, strengthening financial
312
markets (Chairman Greenspan)
Real Estate Reform Act of 1987 (H.R. 3675)
(William Taylor, Staff Director, Division of
Banking Supervision and Regulation)
304
Reducing budget deficits, long-term policy
(Chairman Greenspan)
293
Response to October stock market crisis
(Chairman Greenspan)
217
Stock market credit
Over-the-counter stocks (See Over-the-counter
stocks, list of marginable)
Regulations G, T, and U (See Regulations)
Strategic Plan for Managing Risk in the Payments
System, publication
615
Supplemental Financing Facility-International
Monetary Fund
213
Survey of Consumer Attitudes
372
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.)
Task Force on Market Mechanisms
167
Tax Reform Act of 1986
79, 84-87, 362, 409, 720
Taylor, William, statements
304, 376
Testimony (See Statements to Congress)
Thrift Institutions Advisory Council
Appointment of new members,
167
List
A73
Training
White collar crime
35
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)
Truth in Lending Act
28
Truth in Lending, Regulation Z (See Regulations)
Truth in Savings
742
UNIFORM Bank Bribery Act
32
Uniform Commercial Code, New York and Illinois
law and Regulation CC, amendment
679
U.S. League of Savings Institutions
370
U.S. Justice Department
31-37
U.S. Treasury Department
25, 790
WARSHAWSKY, Mark J., article
717
Weis, John R., promoted to Associate Director,
Division of Human Resources Management
168
Wolfson, Martin H., article
403
World Bank
103, 298, 299, 790
World Bank Executive Board
29

A92

Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip

Chairman
Deputy Chairman

President
First Vice President

BOSTON*

02106

George N. Hatsopoulos
Richard N. Cooper

Frank E. Morris
Robert W. Eisenmenger

NEW YORK*

10045

John R. Opel
Ellen V. Futter
Mary Ann Lambertsen

E. Gerald Corrigan
James H. Oltman

Buffalo

14240

Vice President
in charge of branch

John T. Keane

PHILADELPHIA

19105

Nevius M. Curtis
Peter A. Benoliel

Edward G. Boehne
William H. Stone, Jr.

CLEVELAND*

44101

W. Lee Hoskins
William H. Hendricks

Cincinnati
Pittsburgh

45201
15230

Charles W. Pairy
John R. Miller
Owen B. Butler
James E. Haas

RICHMOND*

23219

Robert P. Black
Jimmie R. Monhollon

Baltimore
Charlotte

21203
28230

Robert A. Georgine
Hanne M. Merriman
Thomas R. Shelton
G. Alex Bernhardt

ATLANTA

30303

Bradley Currey, Jr.
Larry L. Prince
Roy D. Terry
E. William Nash, Jr.
Sue McCourt Cobb
Condon S. Bush
Sharon A. Perlis

Robert P. Forrestal
Jack Guynn

Robert J. Day
Marcus Alexis
Richard T. Lindgren

Silas Keehn
Daniel M. Doyle

Robert L. Virgil, Jr.
H. Edwin Trusheim
James R. Rodgers
Lois H. Gray
Sandra B. Sanderson

Thomas C. Melzer
James R. Bowen

Michael W. Wright
John A. Rollwagen
Marcia S. Anderson

Gary H. Stern
Thomas E. Gainor

Irvine O. Hockaday, Jr.
Fred W. Lyons, Jr.
James C. Wilson
Patience S. Latting
Kenneth L. Morrison

Roger Guffey
Henry R. Czerwinski

Bobby R. Inman
Hugh G. Robinson
Peyton Yates
Walter M. Mischer, Jr.
Robert F. McDermott

Robert H. Boykin
William H.Wallace

Robert F. Erburu
Carolyn S. Chambers
Richard C. Seaver
Paul E. Bragdon
Don M. Wheeler
Carol A. Nygren

Robert T. Parry
Carl E. Powell

Birmingham
Jacksonville
Miami
Nashville
New Orleans

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
James Curry III
Donald E. Nelson
Robert J. Musso

Roby L. Sloan1

John F. Breen
Howard Wells
Paul I. Black, Jr.

Robert F. McNellis

Kent M. Scott
David J. France
Harold L. Shewmaker
Tony J. Salvaggio1
Sammie C. Clay
Robert Smith, III1
Thomas H. Robertson
John F. Hoover1
Thomas C. Warren2
Angelo S. Carella1
E. Ronald Liggett1
Gerald R. Kelly1

•Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016;
Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
1. Senior Vice President.


2. Executive Vice President.


A93

The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories

April 1984

/
/
•

ALASKA

©

\

/
i
1
i

/
A S ?

LEGEND

•—"* Boundaries of Federal Reserve Districts
Boundaries of Federal Reserve Branch
Territories

®

Federal Reserve Bank Cities

*

Federal Reserve Branch Cities
Federal Reserve Bank Facility

Q

Board of Governors of the Federal Reserve
System




Publications of Interest
NEW HANDBOOK AVAILABLE
REGULATORY
SERVICE

FROM THE

The Federal Reserve Board has announced publication of The Payment System Handbook. The new
handbook, which is part of the Federal Reserve Regulatory Service, deals with expedited funds availability, check collection, wire transfers, and risk-reduction policy. It includes Regulation CC (Availability of
Funds and Collection of Checks), Regulation J (Collection of Checks and Other Items and Wire Transfers
of Funds by Federal Reserve Banks), the Expedited
Funds Availability Act and related statutes, official
Board commentary on Regulation CC, and policy
statements on risk reduction in the payment system. In
addition, it contains detailed subject and citation indexes. It is published in loose-leaf binder form and is
updated monthly.
To promote public understanding of its regulatory
functions, the Board publishes the Federal Reserve
Regulatory Service, a three-volume loose-leaf service




containing all Board regulations and related statutes,
interpretations, policy statements, rulings, and staff
opinions. For those with a more specialized interest in
the Board's regulations, parts of this service are published separately as handbooks pertaining to monetary
policy, securities credit, consumer affairs, and, available for the first time in September 1988, The Payment
System Handbook.
For domestic subscribers, the annual rate for The
Payment System Handbook is $75. For subscribers
outside the United States, the price, including additional air mail costs, is $90. For the Federal Reserve
Regulatory Service, not including handbooks, the annual rate is $200 for domestic subscribers and $250 for
subscribers outside the United States. All subscription
requests must be accompanied by a check payable to
"Board of Governors of the Federal Reserve
System." Orders should be addressed to Board of
Governors of the Federal Reserve System, P.O. Box
27531, Richmond, Virginia, 23261-7531.

Publications of Interest
FEDERAL RESERVE CONSUMER
PUBLICATIONS

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 explains how to use the credit laws to shop for credit,
apply for it, keep up credit ratings, and complain about
an unfair deal.

Fair
Credit

Billing
i
T

^




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.
Three booklets on the mortgage process are also
available: A Consumer's Guide to Mortgage Refinancing, A Consumer's Guide to Mortgage Lock-Ins, and
A Consumer's Guide to Mortgage Closings. These
booklets were prepared in conjunction with the Federal Home Loan Bank Board and in consultation with
other federal agencies and trade and consumer groups.
Copies of consumer publications are available free
of charge from Publications Services, Mail Stop 138,
Board of Governors of the Federal Reserve System,
Washington, D.C. 20551. Multiple copies for classroom use are also available free of charge.