Full text of Federal Reserve Bulletin : December 1989
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VOLUME 7 5 •
N U M B E R 12 •
DECEMBER 1 9 8 9
FEDERAL RESERVE
BULLETIN
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood
• Donald L. Kohn • J. Virgil Mattingly, Jr. • Michael J. Prell • Edwin M. Truman
The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by Mendelle T.
Berenson, the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.
Table of Contents
771 THE FORMATION OF PRIVATE
BUSINESS CAPITAL: TRENDS,
RECENT
DEVELOPMENTS,
AND
MEASUREMENT
ISSUES
Although various estimates of the value of
the U.S. capital stock have long been published, a widely available series that gauges
the productiveness of the stock had been
unavailable until 1983, when the Bureau of
Labor Statistics unveiled a new statistical
series called capital input. This article discusses some basic concepts of capital measurement, examines the accumulation of
private business capital in the United States
after World War II in light of the BLS
measure, and uses that measure to assess a
current controversy over the strength of
investment and capital growth in the 1980s.
784 INDUSTRIAL
PRODUCTION
Industrial production decreased 0.1 percent
in September.
786 STATEMENTS
TO
CONGRESS
Martha R. Seger, Member, Board of Governors, gives the views of the Board on the
Government Check Cashing Act of 1989
and the Basic Banking Services Access Act
of 1989 and says that the Board believes
that voluntary efforts by financial institutions and further development of electronic
benefits transfer will meet many of the goals
of the bills, without the burden and cost that
rules and regulations inevitably impose, before the Subcommittee on Consumer Affairs and Coinage of the House Committee
on Banking, Finance and Urban Affairs,
October 17, 1989. (This statement was delivered by Governor LaWare.)
790 John P. LaWare, Member, Board of Governors, presents the views of the Board on
the extent of state member banks' compliance with federal laws that prohibit discrimination in mortgage lending and says that
the Board is committed to vigorously enforcing the antidiscrimination laws for
which it has responsibility, before the Subcommittee on Consumer and Regulatory
Affairs of the Senate Committee on Banking, Housing, and Urban Affairs, October
24, 1989.
795 Alan Greenspan, Chairman, Board of Governors, testifies in connection with the Zero-Inflation Resolution and the Federal Reserve Reform Act of 1989 and says that the
Zero-Inflation Resolution is an example of
appropriate guidance for the central bank if
the Congress chooses to go in that direction; however, the provisions of the Federal
Reserve Reform Act could well prove detrimental to the implementation of effective
monetary policy, before the Subcommittee
on Domestic Monetary Policy of the House
Committee on Banking, Finance and Urban
Affairs, October 25, 1989.
803 Manuel H. Johnson, Vice Chairman, Board
of Governors, presents the views of the
Board on the condition of the nation's banking system and says that the performance of
most institutions during 1988 and for the
first part of 1989 suggests that progress has
been made in meeting the problems of the
industry, before the Senate Committee on
Banking, Housing, and Urban Affairs, October 25, 1989.
810 Vice Chairman Johnson comments on the
Treasury Department's report on U.S. international economic and exchange rate
policy and says that what underlies the
policy dialogue with the Group of Seven
countries and with the newly industrializing
countries is a recognition that balanced and
mutually consistent economic policies
among major countries are essential for a
healthy and stable world economy, before
the Subcommittee on International Development, Finance, Trade and Monetary
Policy of the House Committee on Banking, Finance and Urban Affairs, October
31, 1989.
812 RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET
COMMITTEE
At its meeting on August 22, 1989, the
Committee adopted a directive that called
for maintaining the current degree of pressure on reserve positions and that provided for giving special weight to potential
developments that might require some
slight easing during the intermeeting period. With regard to the factors that were
important in considering any intermeeting
changes in reserve conditions, the Committee continued to give primary weight to
the inflation outlook. Accordingly, slightly
greater reserve restraint might be acceptable during the intermeeting period, while
some slight lessening of reserve pressure
would be acceptable, depending on progress toward price stability, the strength of
the business expansion, the behavior of
the monetary aggregates, and developments in foreign exchange and domestic
financial markets. The reserve conditions
contemplated by the Committee were expected to be consistent with growth of M2
and M3 at annual rates of around 9 percent
and around 7 percent respectively over the
three-month period from June to September. The intermeeting range for the federal
funds rate was left unchanged at 7 to 11
percent.
820
ANNOUNCEMENTS
Meeting of Consumer Advisory Council.
Revised List of Marginable OTC Stocks
now available.
Proposed amendments to Regulation T;
proposed revisions to Regulation C;
changes to the operating schedule for Fedwire funds transfers and book-entry securities transfers.
Publication of Annual Statistical Digest, 1988.
Discontinuance of publication of the Historical Chart Book.
823 LEGAL
DEVELOPMENTS
Various bank holding company, bank service corporation, and bank merger orders;
and pending cases.
AI FINANCIAL
AND BUSINESS
STATISTICS
These tables reflect data available as of
October 27, 1989.
A3 Domestic Financial Statistics
A46 Domestic Nonfinancial Statistics
A55 International Statistics
A71 GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES,
AND SPECIAL
TABLES
A78 BOARD OF GOVERNORS
AND
STAFF
A80 FEDERAL OPEN MARKET
COMMITTEE
AND STAFF; ADVISORY
COUNCILS
A82 FEDERAL RESERVE
PUBLICATIONS
A84 SCHEDULE
PERIODIC
BOARD
OF RELEASE
RELEASES
A86 INDEX TO STATISTICAL
A88 INDEX TO VOLUME
DATES
FOR
TABLES
75
A99 FEDERAL RESERVE
BANKS,
BRANCHES, AND OFFICES
AIOOMAP OF FEDERAL
RESERVE
SYSTEM
The Formation of Private Business Capital:
Trends, Recent Developments,
and Measurement Issues
Stephen D. Oliner, of the Board's Division of
Research and Statistics, wrote this article.
Michelle L. Phillips provided research assistance.
troversy over the strength of investment and
capital growth in the 1980s.1
The rate at which the stock of business plant and
equipment expands is a major determinant of
labor productivity, business competitiveness,
and ultimately the long-run rate of increase in the
standard of living. Thus, policymakers, scholars,
and business leaders pay close attention to estimates of capital accumulation as a key economic
indicator.
In the mid-1950s the Bureau of Economic
Analysis (BEA) developed measures of the value
of the capital stock to track depreciation in the
national income and product accounts and to
estimate national wealth. These BEA estimates
of the capital stock were not intended to measure
the productive services provided by capital on a
period-by-period basis; therefore, they are not
well suited for studies relating capital accumulation to economic growth and advances in productivity. It was not until 1983, when the Bureau of
Labor Statistics (BLS) unveiled a new statistical
series, called capital input, that data capable of
measuring capital services became widely available.
This article discusses some basic concepts of
capital measurement, examines the accumulation
of private business capital in the United States
after World War II in light of the BLS measure,
and uses that measure to assess a current con-
CAPITAL STOCK,
AND
CAPACITY
NOTE. The author thanks the following reviewers of earlier
drafts, who bear no responsibility for any errors that remain:
Flint Brayton, Carol A. Corrado, Eileen Mauskopf,
Lawrence Slifman, Charles S. Struckmeyer, and Peter A.
Tinsley, of the Board's staff; John C. Musgrave and Jack E.
Tripfett, of the Bureau of Economic Analysis; and Michael J.
Harper, of the Bureau of Labor Statistics.
CAPITAL
SERVICES,
The flow of output that a firm can produce in a
given period depends on the service flows provided by its capital stock and labor force, both
working in combination with materials, services,
and energy purchased by the firm. This description of production—the so-called production
function—implies that the influence of capital
accumulation on output and productivity is not
governed by the growth of the capital stock as
such but rather by changes in the flow of services
generated by that stock. The emphasis on the
services provided by capital parallels the treatment of labor input in studies of production, in
which the contribution of labor to output reflects
the number of hours worked by employees rather
than simply the size of the work force.
Although data are available on the hours
worked by labor, the analogous information on
the flow of services from capital is generally
difficult to obtain. For example, consider a fleet
of delivery trucks owned by a furniture store. An
accurate measure of capital services provided by
these trucks would have to take into account the
1. A more detailed yet relatively nontechnical introduction
to the theory and measurement of capital can be found in
Charles R. Hulten, "The Measurement of Capital," in Ernst
R. Berndt and Jack E. Triplett, eds., Fifty Years of EconomicMeasurement (University of Chicago Press for the National
Bureau of Economic Research, forthcoming). Hulten also
discusses some of the strengths and weaknesses of the data
underlying the BEA and BLS measures of capital, a topic not
covered here in any depth.
772 Federal Reserve Bulletin • December 1989
number of miles logged by each truck and the
share of its carrying capacity used on each delivery. Individual companies probably do not maintain information at this level of detail, and government surveys certainly do not collect it.
In the absence of direct measures of capital
services, analyses of production typically assume that such flows are proportional to some
measure of the capital stock. In terms of the
preceding example, the number of trucks might
substitute as an indicator of the services they
provide. However, the capital stock acts as only
a rough proxy for the actual service flows from
capital. For example, when the economy
emerges from a recession—a period when the use
of existing plant and equipment becomes more
intensive—the flow of service from capital rises
faster than the stock of capital.
Just as capital stock and capital services are
distinct concepts, so are capital stock and capacity. Capacity can be defined in many ways; the
Federal Reserve Board's index of industrial capacity measures it as "the greatest level of
output that a plant can maintain within the framework of a realistic work pattern, taking account
of normal downtime, and assuming sufficient
availability of inputs to operate machinery and
equipment in place." 2 Thus, the Federal Reserve
defines capacity as the flow of output that could
be produced with relatively full utilization of the
available capital stock, given prevailing wage
rates and given prices of materials used in production.
Because capacity is a measure of peak output
under normal operating conditions and capital
represents an input to production, estimates of
the capital stock play a role in the construction of
the Federal Reserve's index of industrial capacity. The Federal Reserve initially estimates capacity with data obtained by combining its indexes of industrial production with survey data
on utilization rates from DRI/McGraw-Hill and
the Bureau of the Census; the Federal Reserve
2. Statistical release, "Capacity Utilization: Manufacturing, Mining, Utilities, and Industrial Materials," Board of
Governors of the Federal Reserve System, September 15,
1989. For a description of the method used to construct the
Federal Reserve's capacity indexes, see Richard Raddock,
"Revised Federal Reserve Rates of Capacity Utilization,"
Federal Reserve Bulletin, vol. 71 (October 1985), pp. 754-66.
then refines these estimates with data on physical
capacity obtained from various industry sources
and with data on the capital stock.
The growth of the capital stock, taken alone,
has not been a reliable guide to estimating growth
in capacity. Long-run differences may reflect a
variety of factors. Some of these factors, such as
improvements in the organization of production
activities and increases in the productivity of
capital, are reflected in the faster trend growth of
capacity compared with the capital stock. Other
differences affect shorter-term comparisons of
the two series. For example, in the 1970s a
significant portion of capital spending consisted
of equipment to abate pollution and improve
worker health and safety. Although the equipment appeared as part of measured capital, it did
not boost a plant's ability to produce goods, and
thus did not affect measured capacity. Another
difference that weakens the link between annual
changes in capital stock and capacity has to do
with the treatment of retirements of outmoded or
unprofitable facilities. As noted below, estimates
of the capital stock assume that each type of
asset has a constant average service life, regardless of economic conditions, whereas the information used to compile the capacity estimates
reflects the fact that firms tend to extend the
service lives of their capital assets during periods
of strong growth in output.
PUBLISHED
ESTIMATES
OF
CAPITAL
The Bureau of Economic Analysis, in the Department of Commerce, and the Bureau of Labor
Statistics, in the Department of Labor, construct
the principal estimates of capital for the United
States. 3 The differences between the estimates of
the BEA and the BLS are fundamental and
3. For further information on the BEA method for constructing capital stock, see Bureau of Economic Analysis,
Fixed Reproducible Tangible Wealth in the United States,
1925-85 (Government Printing Office, 1987); and John A.
Gorman and others, "Fixed Private Capital in the United
States," Survey of Current Business, vol. 65 (July 1985), pp.
36-47. For a detailed description of the BLS method, see
Bureau of Labor Statistics, Trends in Multifactor
Productivity, 1948-81, Bulletin 2178 (GPO, 1983), app. C.
The Formation of Private Business Capital
reflect the different objectives of the two agencies.
In the early 1980s the BLS developed an
estimate of capital services for use in the measurement of productivity in the U.S. economy.
The BLS constructed its new estimate, known as
capital input and described below in more detail,
as a weighted aggregate of the stocks of various
types of capital; the weights are set to account
for differences in the service flows provided
during a given period by each type of capital.
However, the weights do not capture changes in
utilization rates and thus do not give a complete
measure of service flows.
In contrast, the BEA has never attempted to
construct capital measures that are suitable for
the analysis of output and productivity. Instead,
its main objective has been to develop estimates
of depreciation for use in the national income and
product accounts (NIPA) and associated estimates of national wealth. Accordingly, the BEA
constructs estimates of capital stocks that represent the cost of purchasing tangible capital, not
the service flow provided by that capital in a
given period.
To illustrate the distinction between the purchase cost (or value) of a capital good and its
service flow per period, consider two different
goods: a computer expected to be used for five
years and a machine tool expected to be used for
fifty years. Assume that the computer and the
machine tool each can be purchased new today
for $100. Given their identical purchase prices,
firms implicitly place an equal value on the total
stream of future services provided by each good.
However, in any single period, the service flows
from the computer and the machine tool are quite
different. Assuming that no discount factor is
applied to future services, the computer yields an
average of $20 in services per year for five years,
while the machine tool yields $2 per year for fifty
years. The computer, then, is ten times more
productive than the machine tool in each year,
even though both have the same purchase price
and thus yield the same total amount of service
over their lifetimes.
For the BLS capital input series, the most
important characteristic of the two goods in this
example is their tenfold difference in annual
service flows; for the BEA measures of capital
773
stocks, the central characteristic is their identical
purchase price. Thus, regardless of whether a
firm bought the computer or the machine tool,
the increase in the capital stock as measured by
the BEA at the date of purchase would be the
same—the amount of the purchase price. However, the increase in capital input as measured by
the BLS—the annual service flow—would be
greater if the firm bought the computer than if it
bought the machine tool.
Perpetual
Inventory
Method
To construct estimates of the stock of individual types of capital (such as office and computing equipment, industrial buildings, or metalworking machinery, to name a few), the BEA
and the BLS both use, with only slight variations, a technique known as the perpetual inventory method. The principal difference in the
measures of the two agencies arises later, when
they aggregate the individual stocks that have
been calculated with the perpetual inventory
method.
The perpetual inventory method expresses
the stock of a particular type of capital as a
weighted sum of the investment spending for
the vintages of that good still in service. The
method requires data on investment outlays,
the average service life of the investment good,
and the pattern of retirements around this average life. The BEA and the BLS employ essentially the same data on current-dollar investment spending, the same price deflators to
convert investment outlays to constant dollars,
identical estimates of average service lives, and
similar distributions for retirements around the
average service lives. The only notable difference in the way the BEA and the BLS implement the perpetual inventory method lies in the
weights they apply to past investment.
Because capital input is intended to measure
capital services, the BLS weights each vintage
of investment by an estimate of the share of its
initial productive efficiency remaining at each
age. The BLS assumes that as the age of the
good increases, its loss of efficiency accelerates
(the so-called hyperbolic pattern), reflecting a
combination of increased wear and downtime.
774
Federal Reserve Bulletin • December 1989
The BEA constructs two estimates of capital
stock, the " n e t " stock and the "gross" stock,
both of which are intended as measures of the
value of capital. Accordingly, the BEA weights
each vintage of investment in the perpetual inventory calculation by the proportion of the
initial value of the investment good assumed to
remain intact as it ages. For the net stock, the
weights decline linearly with age because the net
measure assumes that the value of a new capital
good depreciates in a straight-line pattern. The
resulting estimates of depreciation are used by
the BEA to calculate corporate profits and capital consumption allowances in the NIPA. The
Federal Reserve employs the BEA's net capital
stocks to estimate tangible wealth in the United
States in its biannual publication, Balance Sheets
for the U.S. Economy. In contrast to its calculation of the net stock, the BEA's construction of
the gross stock uses weights whose values remain fixed at 1 until the good is retired. The gross
stock therefore represents the total purchase cost
of all goods not yet retired from the capital stock.
Contrary to the BEA's intent, some analysts
have interpreted the perpetual-inventory weights
employed by the BEA to represent the productive efficiency of past investment, with efficiency
in the net stock assumed to decline linearly with
the age of the good and efficiency in the gross
stock assumed to remain unimpaired until retirement. (The hyperbolic pattern, assumed by the
BLS, is intermediate to these two patterns.)
However, even under this interpretation, the
BEA measures of capital stocks are not well
suited for analyses of output and production
because of the method by which the BEA aggregates the perpetual-inventory stocks of individual goods.
Aggregating
Stocks
the
Perpetual-Inventory
With the stocks of individual types of capital in
hand, the BLS and the BEA part company by
aggregating these individual asset stocks to industry totals according to different techniques. In
each case, the method used is appropriate for the
type of capital measure the agency seeks to
construct. The BEA simply adds together the
value-based stocks of the individual goods to get
aggregate gross and net measures of capital
wealth. In contrast, the BLS arrives at aggregate
capital input—its approximation of service flow
per period—by weighting, according to their relative productivities, the individual stocks calculated by the perpetual inventory method.
To be more precise, the BLS method—known
as Tornqvist aggregation—multiplies the growth
rate of each asset stock by its corresponding
share of total capital income and then sums the
weighted growth rates. This procedure yields an
estimate of the growth of capital services; these
period-by-period growth rates are then chained
together from an assumed initial level to generate
capital input in levels.
The Tornqvist procedure assumes that income
shares indicate the relative productivities of the
individual capital goods. Income shares will have
this property if firms act to maximize profits, in
which case they will rent or purchase the costliest capital goods only if those goods generate the
greatest output. 4 Assuming that income shares
represent relative productivities, the BLS capital
input measure has several desirable properties.
First, at a given time, the measure takes account
of the different levels of service provided by
various capital goods. Second, as the income
shares evolve over time, the capital input measure
captures changes in the relative service flows
across capital goods. Thus, except when service
flows change because of shifts in the rate of capital
utilization, capital input can be regarded as a
reasonable measure of capital services.
In practice, weighting with income shares
runs into difficulties. By definition, the income
share for each good equals an imputed rental
price for that good multiplied by the stock of the
good, with the product divided by total capital
income. The rental price is generally unobservable, and the BLS estimates it with the technique employed by Laurits R. Christensen and
4. For further discussion of the properties of Tornqvist
aggregates, see W. E. Diewert, "Aggregation Problems in the
Measurement of Capital," in Dan Usher, ed., The Measurement of Capital, vol. 45, Studies in Income and Wealth
(University of Chicago Press for the National Bureau of
Economic Research, 1980), chap. 8, pp. 433-528; and
Michael F. Mohr, "Capital Inputs and Capital Aggregation in
Production," Discussion Paper 31 (Bureau of Economic
Analysis, August 1988).
The Formation of Private Business Capital
Dale W. Jorgenson. 5 Unfortunately, economic
theory provides little guidance on a number of
decisions required to estimate the rental price,
and therefore the accuracy of the income shares
used as weights in the share aggregation is
uncertain.
THE GROWTH OF PRIVATE
BUSINESS
CAPITAL SINCE WORLD WAR II
An examination of the longer-term growth of
aggregate U.S. business capital can reveal
whether important differences exist between
the BLS and BEA methods of measuring capital. This examination also reveals some of the
major trends in the formation of private capital
over the postwar period and sets the stage for
the discussion of more recent developments.
The BEA measures of private nonresidential
fixed capital cover equipment and nonresidential structures, which constitute the assets typically considered in discussions of business
capital formation. The BLS capital input measure, however, covers a broader range of
goods—not only equipment and nonresidential
structures but also rental housing, inventories,
and land. To permit comparisons between the
measures of the two agencies, I constructed
from unpublished BLS data a capital input
series of narrower scope. This narrower series
is the Tornqvist aggregate for the stocks of
equipment and nonresidential structures alone,
and thus its coverage is comparable to that of
the BEA measures.
Trend Growth,
1948-87
During the 1948-87 period, the narrow BLS
capital input measure (equipment and nonresidential structures alone) grew at a faster pace
than did the BEA measures of gross and net
private nonresidential fixed capital (table 1, top
panel); a similar gap exists in the first five years
of the current expansion (the BLS data end in
1987). The difference between the growth of
5. "The Measurement of U . S . Real Capital Input," Re-
view of Income and Wealth, vol. 15 (December 1969), pp.
293-320.
775
1. Growth of business capital input and capital stock,
selected periods, 1948-87 1
Measure
Average annual
growth (percent)
1948-87
1982-87
Index value,
1987
(1948 = 1)
All private industry
Capital input,
Bureau ofLabor Statistics2
As published
Narrow measure
3.4
3.8
3.1
3.5
3.70
4.40
Capital stock,
Bureau of Economic
Analysis3
Gross stock
Net stock
3.3
3.5
3.0
2.5
3.55
3.97
Manufacturing
Capital input,
Bureau of Labor Statistics2
As published
Narrow measure
3.3
3.5
1.6
3.66
3.94
Capital stock,
Bureau of Economic
Analysis3
Gross stock
Net stock
3.4
3.2
1.7
.5
3.73
3.50
3.9
2.7
4.57
1.1
MEMO
FRB capacity index4
1. Capital stock and capital input are measured in 1982 dollars. The BLS
capital input series cover the private business sector. The sector covered by the
BEA capital stock series is slightly broader, as it includes nonprofit institutions.
2. The published measure of capital input consists of producers' durable
equipment, nonresidential structures, residential rental structures, business
inventories, and land. The narrow measure consists of producers' durable
equipment and nonresidential structures.
3. Gross and net stocks consist of producers' durable equipment and
nonresidential structures.
4. Annual average of monthly observations for the Federal Reserve
Board's measure of capacity in manufacturing.
SOURCE. Bureau of Economic Analysis, Bureau of Labor Statistics, Board
of Governors of the Federal Reserve System, and, for the narrow measure of
BLS capital input, calculations by the author from unpublished BLS data.
capital input and capital stock may seem small on
a yearly basis, but it cumulates significantly over
time: If the alternative measures were set equal
to a common value in 1948, the level of narrowly
defined capital input by 1987 would be 11 percent
larger than the net capital stock and 24 percent
larger than the gross capital stock.
The difference in growth rates between the
narrow capital input measure and the BEA
series reveals the significance of applying income-share weights to the capital stocks of
individual types of assets. As discussed below,
the stocks of short-lived assets have grown
more quickly than those of longer-lived assets
over the postwar period. Moreover, because of
776 Federal Reserve Bulletin • December 1989
their rapid rate of depreciation, short-lived assets have a relatively high rental price and a
high share of capital income. An aggregate
whose components are weighted by income
shares, such as the capital input measure, thus
will take account of the fact that firms have
shifted toward installing assets that deliver a
high level of service per period; the BEA measures, with unweighted components, do not
capture this rise in overall productivity.
The narrow measure of capital input has
grown faster than the BEA's estimates of capital stock, but the published series for capital
input has not. The difference between the
growth rates of the two capital input series
arises because the postwar growth of equipment has outpaced that of all other major asset
groups. Equipment plays a smaller role in the
published BLS measure—which includes land,
inventories, and rental housing—than it does in
the narrower BLS combination of equipment
and nonresidential structures alone. Hence, despite weighting by income shares, the 1948-87
growth in the published measure of BLS capital
input was about the same as that in the BEA
capital stocks (table 1, top panel).
The Federal Reserve's index of manufacturing
capacity has expanded over the postwar period
more rapidly than any of the capital measures for
that sector (table 1, bottom panel). This divergence of longer-run trends between estimated
peak factory output and measures of capital input
and capital stock stems from a number of factors.
For example, as discussed earlier, technical improvements not embodied in the capital stock
have worked over time to boost efficiency. In
addition, organizational changes, such as the
more intensive use of the capital stock through
an expansion of shiftwork, have tended to raise
capacity for any given level of the capital stock. 6
As table 1 also shows, the growth of capital
and, to a lesser extent, of capacity slowed in the
manufacturing sector in the 1982-87 period.
The slower pace probably resulted in part from
the heightening of foreign competition and the
consequent loss of market share by U.S. man-
ufacturers. The competitive inroads on U.S.
manufacturing are evidenced in the 1982-87
period by a lag in production gains and by a low
rate of capacity utilization relative to the 1948—
87 average; in turn, these effects restrained the
accumulation of capital and the expansion of
capacity. The slowdown in capital growth during the current expansion is addressed at length
later in this article, but in the context of all
private industry.
Variations
in Postwar
Growth
The range of the observed annual growth rates
of capital input and capital stock from 1948 to
1987 was relatively narrow. For capital measures limited to equipment and nonresidential
structures, the vast majority of the annual
growth rates stand between 2LA percent and 5LA
percent (table 2). Thus, the growth of capital
has been fairly smooth in the postwar period, in
contrast to the annual growth rates of flow
variables such as business fixed investment,
which have been much more erratic. However,
to some degree, the relative smoothness of
capital growth has likely been an artifact of the
assumption by the BEA and the BLS that
average service lives, and the retirement patterns around these averages, are fixed over the
business cycle. In fact the discard rate appears
to change over the course of the cycle, rising
2. Variability in growth of business capital input and
capital stock, all private industry, 1 9 4 8 - 8 7 1
Percent
Measure
Ninety percent of annual
growth rates, 1948-872
Lower bound
Capital input,
Bureau of Labor Statistics
As published
Narrow measure
Capital stock,
Bureau of Economic Analysis
Gross stock
Upper bound
1.6
2.4
4.7
5.2
2.3
2.2
4.3
4.9
-9.9
14.6
MEMO
Business fixed investment
6. Murray F. Foss, Changing Utilization of Fixed Capital:
An Element in Long-term
Growth (American Enterprise
Institute for Public Policy Research, 1984).
1. Covers the thirty-nine annual growth rates from 1948 to 1987. For
description of terms and sources, see notes to table 1.
2. Excludes lowest 5 percent and highest 5 percent of values.
The Formation of Private Business Capital
1. Growth of business capital, 1982 dollars1
BEA measures of capital stock 2
BLS measures of capital input 3
As published
Equipment and
nonresidential structures
11 B 11
1988
1960
1970
1980
1950
1. The shading represents recessions as defined by the National
Bureau of Economic Research.
2. Bureau Economic Analysis measures of private nonresidential
fixed capital stock. Gross stock is the cumulative value of past
investment not yet discarded. Net stock is gross stock less accumulated depreciation.
3. The Bureau of Labor Statistics compiles estimates of capital input
in the private business sector; its published series covers rental
housing, inventories, and land, as well as equipment and nonresidential structures. The series shown here for equipment and nonresidential structures alone is a narrower measure of capital input constructed
by the author from unpublished BLS data.
SOURCE. Bureau of Economic Analysis, Bureau of Labor Statistics,
and author's calculation.
with the business cycle (chart 1). As a rule,
capital growth picks up as an expansion proceeds, peaking in some cases before the expansion ends and in other cases with the onset of
recession. During recessions, the growth of
capital typically tapers off. This growth pattern
contrasts with that for business fixed investment, which grows fastest just after a recovery
begins. This difference reflects the fact that the
growth of capital depends on the level of investment spending, not on its growth rate (see the
appendix), and that investment levels are relatively low early in an expansion.
The difference between the cyclical pattern of
investment and that of capital accumulation
appears to conform to the so-called accelerator
model of firms' investment behavior. As the
economy emerges from recession, firms become more optimistic about sales and therefore wish to expand their capital stocks to
accommodate the expected growth in business.
This desire produces the high rate of growth
in investment spending usually observed at
that point in the cycle. As the cycle progresses,
the rising level of investment produces an increasing rate of capital accumulation. Once the
growth of capital reaches the steady rate
desired by firms, investment spending tends
to flatten out at a level that supports the continuation of this pace of capital accumulation.
The Capital-Labor
during recessions and falling during expansions. 7 For example, during periods of
strong demand and rising prices, firms apparently use plants whose high operating costs
would otherwise make them unprofitable. Once
demand slackens, these plants become uneconomic and are removed from service.
Despite the smoothing inherent in the BEA
and BLS series, the measured growth of capital
stock and capital input has moved in tandem
7. Susan G. Powers, "The Role of Capital Discards in
Multifactor Productivity Measurement," Monthly Labor Review, vol. I l l (June 1988), pp. 27-35.
10
Ratio,
1948-87
A primary factor working to increase the
standard of living in industrialized countries is
the persistent rise in the amount of capital used
by each worker (the capital-labor ratio). In the
United States, the capital-labor ratio in private
business has risen over the postwar period
regardless of the measures used for capital or
labor (the options for the latter include hours
paid, hours worked, employment, and the labor
force). The measure of the capital-labor ratio
shown in chart 2, where capital is represented
by the published BLS capital input series and
labor by hours paid, rose an average of 2.4
percent per year during the four postwar decades. The capital deepening that resulted ac-
778
Federal Reserve Bulletin • December 1989
2. The capital-labor ratio and the wage-rental
ratio in the private business sector1
Index, 1950 = 1
•
Wage-rental ratio
K
A/
j r^^y
/
/
y-
2.5
—
—2.0
Capital-labor ratio
—1.5
1.0
I l l l
1950
1
•
1 II • 1 1 1 • M1 H i i i i i i i i i i i a i i
1970
1980
1987
1960
1. The wage-rental ratio is compensation per hour divided by the
rental price of the published BLS series for capital input. The
capital-labor ratio is published capital input divided by hours paid for
all persons.
SOURCE. Bureau of Labor Statistics.
counts for more than one-third of the rise in
labor productivity during the period. 8
Since World War II, labor costs generally have
risen faster than the rental price for capital (chart
2), with the resulting uptrend in the wage-rental
ratio virtually paralleling that for the capitallabor ratio. Although the rise in these ratios
reflects a variety of factors, one major influence
likely has been the technical advances that have
8. The standard growth-accounting procedure weights the
2.4 percent rate of growth in the capital-labor ratio by the
capital share of total income (about 0.36) to obtain the
contribution of the capital-labor ratio to growth in labor
productivity in private business. The calculation shows that
capital deepening accounted for about 37 percent of the 2.3
percent average annual growth in labor productivity over the
1948-87 period. The remainder of the increase in productivity came from a variety of factors captured in the so-called
productivity residual. See Stephen D. Oliner, "Capital and
the Slowdown of Growth in the United States: A Review,"
Working Paper Series 87 (Board of Governors of the Federal
Reserve System, Division of Research and Statistics, Economic Activity Section, July 1988) for further discussion of
both growth accounting and the role of capital-related factors
in the growth of labor productivity.
both raised the productivity of capital goods and
lowered the cost of manufacturing these goods
relative to the general inflation rate—the computer revolution being the prominent example.
Such a phenomenon makes capital a progressively cheaper input compared with labor and
encourages firms to substitute capital for labor.
Because the wage-rental ratio and the capitallabor ratio have moved up together, the shares of
total income earned by capital and labor have
been stable over the postwar period. Indeed, for
the private business sector, the BLS estimates
that the capital share over 1948-87 varied by no
more than 2 percentage points in any single year
from its postwar average of 36 percent.
The upward movement in the capital-labor
ratio has been fairly smooth, as shifts in the
growth of the labor supply have tended to be
accompanied by similar changes in the growth of
capital input (chart 3). The relatively weak
growth of capital input in the late 1950s and early
1960s was mirrored by slow growth of the labor
force. Similarly, the robust expansion of capital
input between the mid-1960s and the mid-1970s
was accompanied by the bulge in the labor force
produced by the maturation of the baby boom
3. Growth in the published BLS measure of
capital input and in the civilian labor force
Percent
[•MIBIMBMiaiMBIMBIMBMIBMI
1950
1960
1970
1980
1988
The Formation of Private Business Capital
generation. The tendency for the growth of both
capital and labor to depart from trend simultaneously and in the same direction suggests that
secular movements in labor supply, along with
cyclical effects, account for part of the variation
in capital input growth over the postwar period.
779
4. Measures of the shift within private nonresidential
fixed capital stock toward shorter-lived assets1
Changes in the
Composition
of the Capital Stock
As U.S. firms increased their use of capital
relative to labor in the postwar period, they
replaced long-lived capital assets with short-lived
assets. Between 1948 and 1987, the average
service life of the gross stock of private nonresidential fixed capital fell from about 30 years to
25 years (chart 4, top panel). The shortened
average life largely reflects a shift from structures
to equipment in the makeup of the capital stock
(middle panel of chart 4); in turn, this shift likely
has been driven by the far greater growth in the
productivity of equipment relative to structures.
In particular, the revolution in computer technology improved the price-performance balance
much more for equipment than for structures.
Within the aggregate of equipment, investment
has shifted toward short-lived assets, especially
beginning around 1970, because of the great
expansion in the use of information-processing
and other high-technology equipment—computers, electronic communications gear, photocopiers, and scientific instruments—at the expense of
more traditional types of industrial equipment.
As a result, the average service life for the gross
stock of equipment fell roughly 15 percent between 1948 and 1987, from 17.5 years to about 15
years (bottom panel of chart 4). In contrast, the
average service life for the gross stock of nonresidential structures fell only about 3 percent
over this period.
A shift toward short-lived assets has two effects on measures of capital. First, it raises the
aggregate rate of efficiency loss for capital, as
shorter-lived assets suffer more rapid wear than
longer-lived goods. Accordingly, while the
change is under way, the first effect depresses the
growth of measured capital input or capital
stock, all else equal. Both the BEA and the BLS
capture this effect in their measures of capital
1. Stocks measured in 1982 dollars.
2. Weighted average of the BEA estimate of service life for each
type of equipment and nonresidential structure, with the weight for
each type equal to its share of the BEA gross private nonresidential
fixed capital stock.
3. BEA gross stock of private producers' durable equipment divided
by BEA gross private nonresidential fixed capital stock.
4. For nonresidential structures, the weighted average of the BEA
estimate of service life for each type of nonresidential structure, with
the weight for each type equal to its share of the BEA gross stock of
nonresidential structures. The average service life of equipment
calculated in parallel fashion.
SOURCE. Bureau of Economic Analysis and author's calculations.
through the use of the perpetual inventory equation.
The second effect is that, for each dollar of
capital spending, short-lived assets deliver a
greater flow of services during each period of use
(as indicated by their higher rental price), raising
the overall productivity of capital. The BLS
procedure incorporates this second effect because it weights the growth of the stock for each
asset with an estimate of that asset's share of
total capital income. In contrast, the BEA procedure, which adds together the stocks of different assets without weighting, does not capture
the change in service flows delivered during a
780 Federal Reserve Bulletin • December 1989
given period. Because the average service life of
assets has steadily declined over the postwar
period, the unweighted aggregates tend to rise
more slowly than the share-weighted measures,
as indicated in table 1.
Some observers take the shift toward shortlived assets to be an unfavorable development
precisely because they see that the growth of the
unweighted measures of capital stock slows with
the rise in the rate of aggregate efficiency loss.
However, as shown above, this effect is only part
of the story. Given the concomitant rise in current service flows, the substitution of short-lived
for long-lived assets is not inherently worrisome
if the pace of aggregate capital spending is well
maintained.
PRIVATE BUSINESS CAPITAL FORMATION
AND INVESTMENT DURING THE CURRENT
EXPANSION
As noted at the outset, economists have debated
the strength of capital accumulation by U.S. businesses during the 1980s. This issue fits into a
larger debate about the health of the U.S. economy during the current expansion, particularly
about the strength of investment given the relatively high level of real interest rates over the
period. According to one view, private capital
accumulation during the current expansion has
been robust, with strong investment demand accounting for both the high real interest rates
during the decade and the large inflow of foreign
capital; thus, on this view, neither the high rates
nor the capital inflow indicate a serious imbalance. In contrast, a more traditional perspective
regards the large U.S. federal budget deficit as
mainly responsible for the high real interest rates,
which in turn have crowded out private capital
formation. The BLS capital input series provides
a partial resolution of the differing views.
The adequacy of capital accumulation can be
assessed only by reference to some benchmark.
One common benchmark is the growth of labor
input, because the factor that influences the gains
in labor productivity and ultimately in living
standards is the expansion of capital input relative to labor, not of capital input as such. For
example, a slowdown in the pace of annual
capital growth from, say, 3 percent to 1 percent
would be an ominous development if the labor
force continued to expand at an unchanged pace.
However, the same slowdown in capital growth
would not be cause for worry if the rate of labor
force growth diminished as well, thereby reducing the trend pace of economic expansion.
Although the capital-labor ratio is a reasonable
gauge of the adequacy of capital formation, much
of the recent debate has used ratios of investment
spending to GNP as the benchmark. The share of
investment spending in total output provides
information on the resources devoted to capital
accumulation and, in some cases, signals movements in the capital-labor ratio; this connection
gives a rationale for examining measures of the
investment-to-GNP ratio. However, such measures are one step removed from the more fundamental indicator—the capital services available per worker in the economy. When the
composition of the capital stock changes, the
growth in these service flows need not move in
step with ratios of investment to GNP.
Investment as an Indicator
Accumulation
of
Capital
In large part, the differing views concerning the
recent pace of business capital formation turn on
two conflicting ratios of business fixed investment to GNP. The first is the ratio of gross
business fixed investment to GNP; the second is
the ratio of net business fixed investment to GNP
(net investment equals gross investment minus
the BEA's estimate of depreciation for the private nonresidential fixed capital stock).
Chart 5 displays the ratio of gross and net
business fixed investment to GNP, both expressed in 1982 dollars. The gross investment
ratio has trended up through the postwar period,
reaching record levels in the 1980s, whereas the
net investment ratio has trended down since the
mid-1960s and now stands close to the lowest
levels of the postwar period. Thus, these alternative ratios yield contrary impressions of the
strength of capital formation. The shift toward
short-lived assets, which raised considerably the
overall rate of depreciation on the nonresidential
capital stock after the mid-1970s, has created the
difference in the ratios. The increase in the ratio of
The Formation of Private Business Capital
5. Ratio of business fixed investment to GNP,
1982 dollars1
1. Net investment is gross investment less BEA estimate of depreciation of the gross private nonresidential fixed capital stock.
SOURCE. Bureau of Economic Analysis.
gross business fixed investment to GNP has failed
to keep pace with the rising depreciation rate,
yielding a decline in the net investment ratio.
Arguments have been advanced in favor of
each investment share. Analysts on the side of
the net share have noted that the gross ratio
improperly ignores the rising rate of depreciation
and efficiency loss associated with the shift
toward short-lived capital goods. Other observers prefer the gross investment share when examining trends in capital accumulation, for two
reasons. First, they question the accuracy of the
net investment share given the lack of solid
information available on the rate of depreciation.
Second, they note that even if the net share
accurately captures the rise in the aggregate
depreciation rate when investment outlays shift
toward short-lived assets, it understates in that
case the flow of services provided by the capital
stock because it does not show the higher service
flow per period generated by short-lived goods. 9
9. See Frank de Leeuw, "Interpreting Investmentto-Output Ratios: Nominal/Real, Gross/Net, Stock/Flow,
Narrow/Broad," Discussion Paper 39 (Bureau of Economic
Analysis, March 1989).
The BLS Measure
of Capital
781
Input
The concerns about each investment ratio have
merit, suggesting that neither the gross investment share nor the net investment share is fully
appropriate as an indicator of trends in capital
accumulation when the mix of assets in the
capital stock changes. As noted above, the more
informative yardstick by which to assess the
pace of capital formation is the capital-labor
ratio. The measure of capital used in the ratio
should capture the service flows from capital,
taking account of shifts in the composition of the
stock and the resulting changes in the rate of
aggregate efficiency loss. As already shown, the
BLS capital input series was designed specifically to capture these service flows and thus is
well suited to the issue at hand.
Despite its aptness, the BLS measure has received little attention in the debate over capital
formation in the 1980s, probably because capital
input is not as widely known as the BEA series on
investment and capital stock. The following analysis uses the capital input measure to examine
whether the pace of capital accumulation has
changed significantly in recent years. Because
concerns about capital formation have centered
on plant and equipment, the analysis employs not
only the published BLS measure of capital input
for private business—which includes rental housing, inventories, and land, in addition to equipment and nonresidential structures—but also my
narrow version of the measure, which is restricted
to equipment and nonresidential structures.
Several measures of labor can be used to
calculate the capital-labor ratio, including total
hours worked, total hours paid, employment,
and the labor force. Computing the capital-labor
ratio with either hours or employment yields a
measure that is highly sensitive to the business
cycle; for example, as the economy comes out
from a recession, employment and labor hours
tend to increase more rapidly than capital input,
depressing growth in the capital-labor ratio measured with either of these indicators of labor. To
avoid the need for cyclical adjustment, the discussion focuses on the growth of capital input
relative to the labor force, which is far less
sensitive to the business cycle.
Table 3 displays the growth of capital input per
782
Federal Reserve Bulletin • December 1989
person in the labor force over various segments
of the postwar period. Growth of the ratio slowed
sharply between 1973 and 1979—a period
marked by two energy crises and relatively poor
economic performance. Then, in the 1980s,
growth of the ratio moved back toward the
pre-1973 pace, although the extent of the pickup
depends on whether one examines the full period
from 1979 to 1987 or the shorter period limited to
the current expansion.
The data in table 3 shed some light on the
debate over the adequacy of capital formation in
recent years. Regardless of the particular capital-labor ratio examined, the data do not appear
to support the view that private investment
spending and capital accumulation have been
unusually strong during this decade. Table 3 also
casts doubt on the opposing view that private
capital accumulation in the 1980s has been especially weak, as the growth of capital input relative to the labor force during 1979-87 did not
differ much from the average rate over the previous thirty years. Instead, this analysis suggests
a more middle-of-the-road assessment: The
growth of capital input has continued to exceed
that of the civilian labor force in the 1980s by a
fairly wide margin, indicating no obvious break
with the earlier postwar pattern of capital accumulation.
structed as measures of capital wealth, not capital services.
Over the postwar period, the BLS measure of
capital input in private business has expanded at
about a V/i percent annual rate. This advance has
yielded considerable capital deepening—the increase in the capital used by each worker—and
accounts for more than one-third of the growth in
labor productivity over the postwar period. In
addition, the persistent shift in the composition
of the capital stock toward short-lived assets has
boosted the growth of capital input for equipment
and nonresidential structures relative to the
growth in estimates of capital stock published by
the BEA. The gap reflects the high level of
capital service provided by short-lived assets, a
phenomenon captured only by the capital input
series.
The growth of capital input has tended to move
up and down with that of the civilian labor force
throughout the postwar period, including the
1980s. Thus, the pace of capital accumulation has
continued to support a rate of capital deepening
in recent years not much different from the
postwar average, suggesting that characterizations of capital formation in the 1980s as unusually weak or unusually strong are unwarranted.
APPENDIX: THE RELATION
BETWEEN
INVESTMENT AND THE CAPITAL STOCK
SUMMARY
The BEA and the BLS publish a variety of
measures of the tangible capital owned by private
businesses in the United States. Of these, only
the BLS capital input series is intended to be
used in analyses of output and productivity; the
BEA estimates of the capital stock are con-
The relationship between investment and the
growth of the capital stock is often a point of
confusion. In particular, the assertion is sometimes made that a large increase in investment
spending, regardless of the initial level of outlays, should lead to a sizable rise in the capital
stock. The discussion here demonstrates that
3. Growth in the ratio of capital input to the labor force, selected periods, 1 9 4 8 - 8 7 1
Average annual change, percent
Capital input measure
in numerator of ratio
1948-87
1948-73
1973-79
1979-87
1982-87
1.6
2.1
1.8
2.2
.8
1.5
1.8
2.0
1.5
1.8
1. Capital input measured in 1982 dollars. For description of capital input, see table 1, notes 1 and 2.
SOURCE. Author's calculations based on data from the Bureau of Labor Statistics.
The Formation of Private Business Capital
capital-stock growth depends directly on the
level of net investment spending. For a capital
stock designed to measure the productive services from capital, net investment is defined as
investment outlays minus the physical deterioration of existing stock. (In contrast, for a capital
stock intended to measure the value of capital,
net investment is defined as investment outlays
minus the depreciation of existing stock.)
The link between the level of net investment
and the growth of capital stock follows directly
from the perpetual inventory equation, in which
the estimate of the change in the capital stock at
time t can be written as
Kt - Kt_i = I, -
aK,_x,
where K is the capital stock, / is investment
outlays, and a represents the constant rate of
efficiency loss as capital goods age. The equation
says that the change in the capital stock equals
Relation between investment and capital stock
I
1
I
I
I
I
I
I
I
I
I
10
20
30
40
50
60
70
80
90
100
783
the additions to the stock from investment outlays minus the deterioration of the existing stock.
The growth of investment plays no direct role in
this equation. When one recalls that capital is a
stock and investment is a flow, this equation
makes sense: The growth of a stock depends on
the level of flows into the stock, in this case
investment flows net of deterioration.
The equation for growth in the capital stock
can be illustrated through a simple example (see
chart). Assume that the constant rate of deterioration is 5 percent, the initial level of the capital
stock is 100, and the initial level of investment is
5. In the initial state, investment just balances
deterioration, leaving the capital stock unchanged. Then, in period ten, the level of investment doubles to 10 and remains at this higher
level forever. Given the doubling of investment
and no immediate change in the level of deterioration, the capital stock grows by 5 units in
period ten. As time passes, the capital stock
continues to grow, as the fixed level of investment continues to exceed replacement requirements. However, over time, replacement requirements get progressively larger, reflecting
the increased size of the capital stock. Eventually the process comes to a halt, with capital
stock having doubled in value to 200 and the level
of investment once again equaling the amount of
deterioration. The example makes clear that,
after a one-time rise in the level of investment,
the capital stock continues to grow for a long
time. Similarly, a one-time decline in the level of
investment restrains the growth of capital stock
over an extended period.
784
Industrial Production
Released for publication October 17
Industrial production decreased 0.1 percent in
September after an increase of 0.3 percent in
August. The most significant declines occurred in
the output of trucks, basic metals, and construction supplies. The decline in truck production
more than offset a sharp rise in auto assemblies.
Output of most other major sectors changed
little. At 142.3 percent of the 1977 average, the
total index in September was 2.7 percent higher
than it was a year earlier. For the third quarter as
a whole, growth in total output decelerated to 1.3
percent at an annual rate after a gain of 3.3
percent in the second quarter. Manufacturing
output declined 0.2 percent in September, and
Ratio scale, 1977=100
Total Index
Products
Materials
Manufacturing
Nondurable
Materials
Nondurable
Durable
Durable
Consumer Goods
Nondurable
Intermediate
Products
Construction
supplies
Durable
Motor Vehicles and Parts
Business
supplies
Final Products
150
135
120
90
75
All series are seasonally adjusted. Latest series: September.
Business
equipment
Consumer goods
785
1977 = 100
Percentage change from preceding month
1989
1989
Group
Sept.
Aug.
May
June
July
Aug.
Sept.
Percentage
change,
Sept. 1988
to Sept.
1989
Major market groups
Total industrial production
142.4
142.3
.0
.3
.0
.3
-.1
2.7
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment
Defense and space
Intermediate products
Construction supplies
Materials
152.6
151.0
139.3
128.6
143.3
169.9
181.0
158.0
142.4
128.6
152.6
151.1
139.5
128.2
143.7
169.8
180.5
157.9
141.6
128.2
.1
.2
-.3
-.7
-.1
.8
.4
-.1
.0
-.3
.5
.5
.6
-.3
.9
.3
.2
.4
.7
-.1
-.3
-.5
-.8
-2.5
-.2
-.4
.3
.4
.6
.4
.4
.4
.3
.9
.1
.6
-.4
.3
.3
.2
.0
.1
.1
-.3
.3
.0
-.3
-.1
-.6
-.3
3.5
3.6
3.4
1.5
4.1
5.6
-2.2
3.3
2.3
1.4
.3
.4
.1
1.0
-.5
-.2
-.5
.1
.9
1.2
3.0
2.2
4.1
-.1
1.7
Major industry groups
148.7
146.9
151.3
103.6
115.0
149.1
147.6
151.1
102.7
113.6
Manufacturing
Durable
Nondurable
Mining
Utilities
.0
.1
-.1
-.3
-1.3
.4
.2
.7
-.6
-1.2
.0
-.3
.3
.2
.0
NOTE. Indexes are seasonally adjusted.
capacity utilization in manufacturing, at 83.7
percent, declined 0.4 percentage point. Detailed
data for capacity utilization are shown separately
in "Capacity Utilization," Federal Reserve
monthly statistical release G.3.
In market groups, production of consumer
goods edged up in September as autos and nondurables posted gains, but trucks and home
goods declined. Auto assemblies rose to an annual rate of 6.8 million units from a rate of 6.4
T o t a l industrial p r o d u c t i o n — R e v i s i o n s
Estimates as shown last month and current estimates
Index (1977=100)
Month
June
July
Aug
Sept
Percentage change
from previous
months
Previous
Current
Previous
Current
141.9
142.0
142.4
142.0
142.0
142.4
142.3
.2
.1
.3
.3
.0
.3
-.1
million units in August. Production of business
equipment in September was unchanged, and in
the third quarter rose less than 2 percent at an
annual rate after having advanced at nearly a 10
percent rate during the first half of this year.
Output of construction supplies continued to
be sluggish and has changed little, on balance,
since December. Production of materials declined 0.3 percent in September as durables,
particularly basic metals and parts for consumer
durable goods, fell sharply. Among other materials, chemicals, coal, and electricity generation
posted gains.
In industry groups, the decrease in manufacturing output mainly reflected widespread weakness in durables, with the largest decline occurring in primary metals. Nondurables were about
unchanged as chemicals and petroleum products
rose, but textiles declined. Outside manufacturing, production at both mines and utilities rose
sharply.
786
Statements to Congress
Statement by Martha R. Seger, Member, Board
of Governors of the Federal Reserve System,
before the Subcommittee on Consumer Affairs
and Coinage of the Committee on Banking,
Finance and Urban Affairs, U.S. House of Representatives, October 17, 1989.1
Thank you for the opportunity to provide the
views of the Board of Governors of the Federal
Reserve System on H.R. 3180, the Government
Check Cashing Act of 1989, and H.R. 3181, the
Basic Banking Services Access Act of 1989.
H.R. 3180 would require depository institutions to cash government checks at cost for
noncustomers who are registered with the institution. A companion bill, H.R. 3181, would require depository institutions to offer "basic"
transaction accounts. These accounts would be
subject to minimal fees and balance requirements
and would permit consumers to make up to ten
withdrawals per month. Both bills call upon the
Federal Reserve Board to set the price of these
services. Virtually identical bills have been introduced in the Senate.
The Board is familiar with the concerns that
motivated the introduction of the House and
Senate bills. Indeed, we share the belief that
banking services should be widely available to
all. To encourage financial institutions to offer
such services, in 1986, along with other federal
and state financial institution regulators, we
adopted and publicized a Joint Policy Statement
on Basic Financial Services. The basic banking
policy statement recognizes the need of consumers for a safe and accessible place to keep
money. It also emphasizes that consumers need a
convenient way to obtain cash (including by
cashing government checks) and to make payments to third parties. The basic banking policy
statement encourages the continued develop-
1. This statement was delivered by Governor LaWare.
ment of basic transaction accounts and check
cashing services by financial institutions. However, the policy statement also recognizes that
addressing these concerns most effectively
means tailoring services to differences in local
needs and the characteristics of individual institutions. It reflects the belief that the development
of truly useful services could be thwarted by the
rigidities of legislation. Thus, in issuing the basic
banking policy statement, the Board supported a
voluntary rather than a mandatory approach. We
thought that identifying a federal interest in the
issue, but giving institutions the necessary flexibility to develop account products for the particular needs of their communities, would yield the
best results. We continue to support voluntary
efforts as the most effective response.
COMMENTS
ON CHECK CASHING
BILL
For several reasons, we are concerned about
enactment of a requirement that depository institutions cash the government checks of noncustomers. Initially, it is not clear that check cashing
services are so widely unavailable that imposing
burdensome federal requirements for mandatory
check cashing is warranted. Over the last several
years, various surveys have been conducted to
assess the availability of check cashing services.
Perhaps because of varying methodology, the
results of the surveys differ on the extent to
which people without accounts at a financial
institution have access to check cashing services.
Surveys by consumer groups found that few
institutions offer the service while surveys sponsored by industry groups and by the General
Accounting Office (GAO) found that generally
many do.
The 1988 survey of the Consumer Federation
of America, for example, found that about 30
percent of the institutions they polled would cash
government checks for noncustomers. On the
787
other hand, at least two surveys found that check
cashing services were much more widely available. The GAO's recent report to the Congress
on government check cashing states that, as of
1985, 86 percent of banks and 55 percent of thrift
institutions cash U.S. Treasury checks for noncustomers. In addition, a 1988 survey of the
American Bankers Association found that more
than 90 percent of the institutions surveyed
would cash government checks for noncustomers. Taken together these surveys suggest
that many institutions are already providing
check cashing services. And we hope that over
time even more institutions will offer such services, encouraged by the basic banking policy
statement and also by the increased emphasis on
institutions having a good Community Reinvestment Act (CRA) record. In this regard, our
recent joint agency policy statement on the CRA
lists the cashing of government checks and the
offering of basic banking accounts for low- and
moderate-income people as a favorable factor in
contributing to a positive CRA assessment.
Given the available information, the Board has
doubts that enough of a problem has been demonstrated to justify sweeping legislation with
specific requirements. Furthermore, enactment
of check cashing requirements—with all of the
inevitable regulations—may do little, in fact, to
increase the number of people who are taking
advantage of such services. For example, the
state of Connecticut requires institutions to cash
state-issued checks for recipients of public assistance. Yet, informal reports from bank representatives in that state indicate that there has not
been a noticeable increase in the number of
persons using financial institutions to cash these
checks since passage of the law. We believe it
would be useful to wait and see if these preliminary reports continue to hold true before launching a nationwide program that might not be
effective.
Besides our doubts about whether the need for
check cashing legislation has been demonstrated,
and whether it will be effective, the Board has
several other concerns. As a general matter, we
think that the government should be very cautious about mandating the services that every
financial institution must offer and, in particular,
setting the fees that are permitted to be charged
for such services. If the government determines
that there is a need for low-cost cashing of
government checks, it probably should first explore the possibility of making that service available itself. For example, using federal post offices to cash government checks might be
considered since they offer financial services
such as money orders and, like financial institutions, they are accessible nationwide in urban
and rural areas. Another idea that should continue to be developed is electronic delivery of
government benefits. Successful delivery systems for electronic benefits are currently operating, including programs in New York City and
St. Paul, Minnesota. Further, a pilot program
involving electronic delivery of Social Security
Supplemental Security Income benefits is expected to be launched this fall in Baltimore.
Electronic delivery systems offer numerous benefits for beneficiaries, government agencies, and
financial institutions. They include eliminating
problems with delayed, lost, or stolen checks,
providing quicker resolution of problems concerning payments, and lowering costs to all parties.
A more specific concern that we have with the
legislation is demonstrated by the process for
determining the fees that may be charged for
cashing government checks. The bill requires the
Board to study the "actual costs" of financial
institutions and to set the fees permitted to be
charged for these services to recover these costs.
It would be extremely difficult and expensive for
the Board to obtain uniform data from institutions on their actual costs for providing the check
cashing services envisioned by the bill. Furthermore, the cost to an institution for cashing government checks will inevitably vary from institution to institution based on size and locality.
Inasmuch as cashing a check for a noncustomer
is an interest-free loan by an institution, there
also are certain hidden costs to an institution that
may be different from its costs for cashing a
customer's check.
Thus, any fees set by the Board would almost
certainly be an average of those costs and, as
such, could never reflect the actual differences
among institutions. With a single federally established fee, some institutions would fail to recover
their costs while other institutions would be
788
Federal Reserve Bulletin • December 1989
overcompensated. Finally, it appears inequitable
for financial institutions to be required to cash
government checks at cost while other entities,
such as check cashers, could continue to offer
such services at a profit.
The Board is also concerned that financial
institutions could increasingly fall victim to fraud
if the check cashing legislation is enacted. Given
that checks can easily be stolen and identification
cards are readily forged, the risks of fraud may
be significant.
The bill recognizes the fraud risk but limits
regulatory relief to large scale fraud on a "classification of checks" as determined by the
Board. This fraud provision may be small comfort to institutions since it would likely take a
long time for the Board to learn of any general
patterns of fraud. By then, significant losses
might already have been suffered. Individual
cases of fraud will be very difficult to protect
against, since the bill requires that an institution
cash any government check upon presentation of
certain limited registration information.
We are aware that at present the overall level
of fraud involving U.S. government checks is
low. However, the level may be high in certain
areas where Social Security or other benefits
checks are stolen directly from recipients or from
mail carriers. Furthermore, the fraud losses of an
individual institution may be significant, even
though the overall level of fraud is low. We also
believe that there is a good chance that the
overall level of fraud with government checks
could increase following enactment of the legislation. For example, a large-scale fraudulent
check cashing ring has operated for more than
four years in several eastern states and is responsible for up to $15 million in losses. This check
cashing ring had highly sophisticated methods,
including a "how-to" manual to train its members to pass bad personal checks. It is not
farfetched to think that such techniques might be
applied to government check cashing if all institutions are required to accept checks. The bill
would prevent individual institutions from protecting themselves from fraud on a case-by-case
basis by establishing procedures that are more
protective than those included in the bill.
As mentioned earlier, other innovative arrangements are being investigated that would
eliminate many of the problems with delivering
government benefits by paper checks. The Board
strongly supports the facilitation of electronic
alternatives for the delivery of government payments. These "electronic benefits transfer"
(EBT) arrangements probably are a better longterm solution to the problems that motivate the
check cashing legislation.
We have reason to be encouraged about the
prospects of the EBT alternative. Over the
course of the past year, several meetings have
been held among representatives of government
agencies, financial institutions, and consumer
groups to develop a "blueprint" for a model
electronic benefits service program. This document is expected to be published by December.
In addition, several programs are now operating
and others are about to be initiated. The GAO
has concluded that electronic delivery provides
significant advantages over a paper-based system
of delivery of government benefits, and the
Board wholeheartedly agrees. Consequently, we
are pleased with the increased momentum in
EBT activity. It is possible, of course, that these
systems may not prove as efficient or useful as
we hope. But, in our view, it seems wise to
concentrate on encouraging these farsighted efforts as a solution rather than prematurely imposing on financial institutions permanent and
unavoidably burdensome new requirements that
may not solve the problem.
COMMENTS
ON BASIC BANKING
BILL
Turning to the basic banking bill, the Board
questions the need for mandatory basic banking
for many of the same reasons that it questions the
need for mandatory government check cashing.
Initially, it is not clear that the price of banking
services is the primary reason why many people
do not currently have accounts. Since 1977, we
have sponsored four surveys that provided data
from which we could determine the number of
families without depository accounts. Our research suggests that the overall percentage of
families without deposit accounts has remained
fairly constant at around 10 percent in the period
1977-86. (A Census Bureau estimate cited by the
GAO in its report is higher at 18 percent.) Our
research indicates that roughly 30 percent of the
Statements to Congress
families whose income falls in the lowest quintile
do not hold accounts. Although the percentages
for this latter group have fluctuated, the numbers
were more or less the same in 1986 as in 1977.
Thus, while many low-income families do not
have accounts—and we think it is unfortunate
that people who may want accounts are outside
the nation's financial system—the fact that the
percentage has remained relatively constant suggests that recent increases in fees and minimum
balance requirements have not caused a significant decline in account holding. Rather than the
cost of opening or maintaining an account, there
are probably more fundamental reasons for much
of the lack of account ownership. For example,
given the convenience of check cashing alternatives and the difficulties in managing an account
with limited resources, some low-income people
may not choose to open an account. It may be
that some people simply prefer not to deal with
banks, especially if they are unfamiliar with them
or distrust them.
The survey on account holding that we conducted does not contain information about the
availability of basic banking accounts among
financial institutions. We have not conducted
such a specific survey. A survey of the availability of basic banking accounts would be costly and
time-consuming for the Board to undertake. It
would take a minimum of nine to twelve months
to design and conduct a survey of this type and to
analyze the data. In any event, with the account
variety among institutions and the variations in
the needs of people depending on where they
live, survey information on basic banking likely
will not present a clear picture.
There have, in fact, been several surveys by
other groups aimed at assessing the availability
of low-cost banking accounts. As may be expected, the survey findings vary greatly, in part
because of different definitions of "basic banking
accounts," and thus do not conclusively answer
the question of how widely basic banking services are available. As with the surveys on check
cashing, surveys by consumer organizations
found that relatively few institutions offer basic
banking accounts—the GAO suggested this as
well, except in the case of accounts for senior
citizens—while surveys sponsored by industry
representatives concluded that many do. De-
789
pending on which national survey is considered,
the percentage of institutions offering basic banking accounts ranges from a low of about 15
percent to a high of about 74 percent. Assuming
that the actual number is somewhere between
those extremes, many financial institutions appear to be providing this service.
Several states have also undertaken studies to
determine how accessible low-cost banking services are for their citizens. In a survey of virtually all financial institutions in New York State,
the Banking Department found that low-cost
banking services are widely available. It also
concluded that the vast majority of low- and
moderate-income people have ready access to
such accounts. Although the New York State
study found that not all institutions offered basic
accounts, it found that at least some institutions
in each rural and metropolitan area offered them.
The Pennsylvania Department of Banking reported in a 1988 study that almost 54 percent of
the institutions they surveyed offered a type of
basic account. The Pennsylvania report recommended that similar studies be conducted periodically in the state "to measure trends within
the banking industry." The State of Virginia
currently is conducting a study of account availability in that state, involving surveys of both
consumers and financial institutions and a series
of public hearings around the state.
Given the data, in our view the jury still is out
on the extent to which there is a basic banking
"problem," and on when, if ever, legislation is
needed to fix it. At a minimum, clearer evidence
that a problem exists is probably needed before
considering taking legislative action. While none
of the surveys found that every institution offered basic accounts, the need for access to these
accounts can be met as long as some institutions
in each community offer them. And that is what
the surveys generally found to be the case.
As with the check cashing bill, the Board is
concerned about the many difficulties in setting
fees for transaction accounts, particularly when
it must determine the "net processing costs" for
financial institutions based on "actual time studies." It would be very expensive to obtain uniform data from institutions since various components affect their individual costs, and there is no
uniform cost accounting system used by all insti-
790 Federal Reserve Bulletin • December 1989
tutions. As with check cashing, a single federally
established fee would be inequitable because it
would not reflect the actual differences in costs
among individual institutions.
The basic banking policy statement that I
mentioned demonstrates the federal government's encouragement of financial institutions
to provide basic services. But it has the benefit
of leaving the development and implementation
of such programs to the creativity of individual
institutions. The basic banking bill would result
in the standardization of basic banking services.
In our view, a better approach is for individual
institutions to address the varying and changing
needs of low-income and elderly individuals. A
number of different account products have
evolved as a result of voluntary efforts by
financial institutions. Some, for example, involve savings accounts with money orders used
for third-party payments. Others, based on a
"pay-as-you-go" idea, have fees for each
check, rather than a monthly maintenance fee
as contemplated by the bill. Either of these
accounts could be preferable to the bill's basic
banking account for the person who writes
fewer than ten checks each month. Thus the bill
risks thwarting the voluntary development of
alternative products such as these that may
more directly meet the needs of some lowincome consumers. Indeed, an institution might
have little incentive to offer additional, and
potentially cheaper, basic banking services
once a standard service is required by law.
Statement by John P. LaWare, Member, Board
of Governors of the Federal Reserve System,
before the Subcommittee on Consumer and
Regulatory Affairs of the Committee on Banking,
Housing, and Urban Affairs, U.S. Senate, October 24, 1989.
I appreciate the opportunity to appear before
this Senate subcommittee to present the Federal Reserve Board's view on the extent of state
member banks' compliance with federal laws
that prohibit discrimination in mortgage lending. In particular, my testimony will summarize
the Board's "Report on Loan Discrimination,"
CONCLUSION
We share the concern that people who may want
access to financial services are outside the nation's financial system, and we recognize the
need for institutions to make a greater effort to
reach out to all segments of the public. We
adopted our basic banking policy statement in
response to these concerns, and we think that
voluntary efforts have gone a long way toward
dealing with them. Our general impression, looking at banking applications, is that many banks
offer some type of low-cost account, and we
expect to see more and more in the future in light
of our policy statement on CRA.
In our experience, well-intentioned legislation
and regulations, particularly as they pyramid one
on top of the other, involve a cumulative burden
that is sometimes not fully appreciated—especially as it affects the numerous small financial
institutions. All of us should be concerned about
the expense and burden of new rules when a need
for legislation has not been clearly demonstrated.
In our view, the surveys on check cashing and
basic banking do not give a strong enough message that such widespread problems exist to the
extent that it is now time to enact new laws.
The Board continues to believe that voluntary
efforts by financial institutions and further development of electronic benefits transfer will meet
many of the goals of the bills—probably more
effectively—without the burden and cost that
rules and regulations inevitably impose.
•
which was submitted to the Congress pursuant
to Section 1220 of the Financial Institutions
Reform, Recovery and Enforcement Act of
1989 (FIRREA).
Section 1220 required the Board and the other
federal financial institution supervisory agencies to report to the Congress on their findings
on the extent of discriminatory lending practices by mortgage lenders subject to their
regulation or supervision (in the Board's case,
state member banks) "based on a review of
currently available loan acceptance and rejection statistics." In addition, the reports were to
provide recommendations for appropriate mea-
Statements to Congress
sures to assure nondiscriminatory lending practices.
Although the Board has a comprehensive compliance examination program to ensure that state
member banks comply with the Equal Credit
Opportunity Act and the Fair Housing Act, it
does not currently have mortgage loan acceptance or rejection statistics of the type contemplated by Section 1220. Consequently, we were
unable to provide the requested analysis. Recent
amendments to the Home Mortgage Disclosure
Act will require certain state member banks as
well as other lenders to report this type of data,
but it will not be available until fall 1991.
Nevertheless, the Board was able to draw
some conclusions about the possible extent of
discriminatory conduct in the mortgage lending
activities of state member banks as a result of the
Federal Reserve System's consumer compliance
examination program. In addition, some information was provided by our consumer complaint
program. Finally, we have followed closely the
concerns over disparities in the amount of residential mortgage lending between minority and
nonminority areas as detailed by studies in Atlanta, Cleveland, Detroit, and Boston—the latter
conducted by the Federal Reserve Bank of Boston. These studies provide useful, but limited,
insight into the issue.
ANTIDISCRIMINATION
LAWS
Two laws directly prohibit discrimination in
mortgage lending—the Fair Housing Act and the
Equal Credit Opportunity Act. These two laws
are complementary in some important respects
relating to mortgage lending. For example, both
set forth criteria that lenders may not consider
when making credit decisions.
The objective of the Fair Housing Act is to
help assure nondiscriminatory practices in all
aspects of the housing market. Consequently, it
applies to a wide range of persons involved in the
sale or rental of housing and regulates many
aspects of residential real estate-related transactions. With regard to mortgage credit, the Fair
Housing Act makes it unlawful for mortgage
lenders to discriminate in a residential real estate-related transaction against any person be-
791
cause of race, color, religion, sex, national origin, handicap, or familial status. The primary
impact of the act with regard to state member
banks is to require equal treatment of applications for mortgage loans from members of a
protected class.
The Equal Credit Opportunity Act and the
Federal Reserve System's Regulation B, which
implements the act, are designed to assure the
nondiscriminatory availability of all types of
credit, including mortgage loans, to all creditworthy applicants. The act and the regulation prohibit creditor practices that discriminate against
an applicant because of race, color, religion,
national origin, sex, marital status, or age (provided the applicant has the capacity to contract);
the fact that all or part of the applicant's income
derives from a public assistance program; or the
fact that the applicant has in good faith exercised
any right under the Consumer Credit Protection
Act. In addition, there are certain other important requirements in the act and regulation relevant to mortgage lending procedures that are
designed in different ways to further the overall
purpose of promoting the nondiscriminatory
availability of credit.
The Board has broad rule writing responsibility
for the Equal Credit Opportunity Act but very
limited enforcement authority. The Congress directed the Board to prescribe regulations to carry
out the purpose of the act for covered lenders—
including, for example, all banks, other depository institutions, and mortgage lenders. In contrast, the Board is given administrative
enforcement responsibility for only state member
banks.
The Fair Housing Act, itself, does not give the
Board any rulewriting or enforcement authority.
The Department of Housing and Urban Development and the Attorney General are designated as
the responsible federal agencies with regard to
such matters. Nevertheless, the procedures for
the Board's consumer compliance examination
program include checking for state member bank
compliance with the Fair Housing Act under our
general authority to assure that banks are complying with federal law.
Before I explain the Board's enforcement program, I would like to briefly explain some characteristics of state member banks to indicate the
792
Federal Reserve Bulletin • December 1989
type of financial institutions on which our program is focused and on which our conclusions
are based.
State member banks are relatively small in size
and number and many are rural. As of December
31, 1988, there were 1,109 state member banks
out of a total of 13,418 commercial banks in the
United States (approximately 8 percent). They
hold about 14 percent of total deposits held by
commercial banks in this country, and 90 percent
of state member banks have total assets of less
than $500 million. More than 45 percent of state
member banks are not located in a metropolitan
statistical area (MSA).
Moreover, state member banks are not a significant presence in the mortgage lending area.
Analysis of the most recent aggregated Home
Mortgage Disclosure Act statistics (1987) indicate that state member banks originated less than
3 percent of all home purchase loans reported.
FEDERAL RESERVE BOARD'S
AFFAIRS PROGRAM
CONSUMER
The Board first established a specialized consumer compliance examination program in 1977.
This program required that the twelve Reserve
Banks around the country conduct examinations
of state member banks to determine compliance
with consumer protection legislation by using a
cadre of specially trained examiners. The scope
of these examinations specifically included the
Equal Credit Opportunity and Fair Housing
Acts. From the beginning, the examiners were
instructed to place special emphasis on violations
involving potential discrimination of the kind
prohibited by these statutes.
In 1979, the Board reassessed its enforcement
responsibilities in the areas of consumer affairs
and civil rights and made several changes to its
consumer affairs program. These changes included increased training for examiners in detecting discriminatory lending practices. Changes
were also made in the System's processing of
consumer complaints. They also placed increased emphasis on investigating serious complaints such as allegations of loan discrimination.
In 1981, the Board re-emphasized responsibilities of state member banks under the Equal
Credit Opportunity Act and the Fair Housing
Act, and put the banks on notice that the Board
would vigorously enforce these acts. This reminder took the form of a policy statement that
stated that failure to comply with certain provisions of the acts were viewed by the Board to be
particularly serious and would require retroactive corrective action.
Federal Reserve System efforts to detect loan
discrimination by state member banks focus on
the consumer compliance examination effort.
Consumer compliance examinations are conducted by examiners at the Reserve Banks who
are specially trained in consumer affairs and civil
rights examination techniques. The Board and
each of the Reserve Banks maintain staff who
work primarily with consumer complaints. The
Board's staff provides general guidance and
oversight to the Reserve Banks in both areas.
The Federal Reserve System's consumer compliance examinations are scheduled at regular intervals and are comprehensive. As a result, the
Board has been able to maintain a high-quality
examination program over the years.
Each state member bank is examined on a
regular basis. The Board's examination frequency policy calls for an examination to be
scheduled every eighteen months for a bank with
a satisfactory record. Banks with exceptional
records can be examined every two years. Those
banks with less than satisfactory records are to
be examined every six months or every year,
depending on the severity of their problems.
The Board believes that expecting a bank
examiner to master both the "safety and soundness" and consumer affairs-civil rights aspects
of bank examinations is not practical given the
existing complexities of both areas that continue
to increase. Consequently, the Federal Reserve
has developed a separate career path for consumer affairs examiners equivalent to that of
commercial examiners at the Reserve Banks.
The Board provides special training to these
examiners.
On average, checking for compliance with the
antidiscrimination laws takes almost nineteen
hours per examination to complete and results in
a comprehensive assessment of the institution's
lending practices.
The procedures focus primarily on comparing
Statements to Congress
the treatment of members of a protected class
with other loan applicants. First, the bank's loan
policies and procedures are reviewed. This is
done by reviewing bank documents, as well as
interviewing loan personnel. During this phase,
the examiner will seek to determine, among other
things, the bank's credit standards. After the
examiner has identified those standards, he or
she will then contrast those standards with a
judgmental sampling of actual loan applications,
especially applications received by the bank from
members of a protected class. This means that
the examiner is looking at the same information
that the bank used to make its credit decision,
including such things as credit history, income,
and total debt burden. If an instance is discovered in which those standards appear not to have
been used, it could be an indication of prohibited
discrimination. This would provide the basis for
a discussion with lending personnel or more
intensive investigation. Finally, an overall analysis of the bank's treatment of applications from
members of protected classes is conducted to
determine whether there are any patterns or
individual instances in which such members were
treated less favorably than other loan applicants.
One other aspect of the examination procedures is an analysis of the geographic distribution
of the bank's credits. Two ways in which this can
be done are by plotting the location of the bank's
accepted and rejected loans in a selected category on a map, and by using Home Mortgage
Disclosure Act data if available. These data are
then cross-referenced to census data, or other
available information that identifies low- and
moderate-income and minority neighborhoods.
The geographic analysis has two functions. First,
it may highlight lending practices evidenced by a
geographic pattern that has a negative impact on
members of a protected class. Second, it is used
in evaluating the bank's performance under the
Community Reinvestment Act.
Another regular part of the examination includes conversations initiated by the examiner
with persons in the community knowledgeable
about local credit needs. The examiners will
routinely ask about public perceptions of the
availability of credit to minorities and low- and
moderate-income persons. This information may
suggest that a particular area of the bank needs
793
additional scrutiny and may provide crucial insights into how the bank is serving the credit
needs of its local community, particularly those
individuals in the community protected by the
antidiscrimination statutes.
There are, however, two significant reasons
why these procedures, extensive as they are,
may not provide absolute assurance that there
have been no individual instances of discrimination.
First, state member banks, like most lenders,
provide a certain amount of flexibility in their
credit standards. This flexibility reflects the fact
that variations are normally found in each applicant's request for credit. In addition, numerous
factors are used to establish creditworthiness (for
example, the amount and reliability of income,
employment history, other debts, credit history,
adequacy and availability of loan collateral,
length of time at present residence, the existence
and nature of deposit relationships), and this
increases the difficulty in determining with any
degree of certainty whether a member of a protected class was denied credit due to the fair
application of credit standards or to discrimination.
Second, the pricing, structure, and even availability of loans also vary. These variations are
primarily due to business considerations that
might include, for example, the perceived risk of
loan default, usury or other legal requirements,
the bank's cost of funds at any given time, and
liquidity considerations. Such factors often make
it more difficult to determine whether those who
obtained credit, albeit on different terms, were
treated equally.
For these two reasons, making conclusive
judgments as to whether any particular variation
is due to legitimate business reasons or discrimination is an inexact and difficult task. Discrimination can occur in many subtle ways, and it
seldom leaves a visible audit trail. As a consequence, we can rarely be certain that discrimination has occurred, and we seldom make this
formal finding. However, it is not uncommon for
examiners to fully explore a questionable variation through conversations with bank personnel.
This aspect of the examination process may play
a substantial role in sensitizing lenders to the
issue of discrimination.
794 Federal Reserve Bulletin • December 1989
As part of the examination procedures, examiners are instructed to review bank practices and
policies regarding preapplication contact with
potential customers. In this regard, it is often
difficult for compliance examiners to determine,
with certainty, what type of interaction may have
occurred between potential applicants and the
bank before an application is received. If applicants are being discouraged from submitting an
application and there is no documented evidence
of such treatment, it is possible that the examiner
will not learn of this improper bank conduct
unless the affected applicants come forward.
Overall, the number and nature of the violations of the Equal Credit Opportunity Act and
the Fair Housing Act discovered during our
compliance examinations suggest that state
member banks are in substantial compliance with
the requirements of both acts. While there are
several procedural requirements of Regulation B
and the Fair Housing Act that some state member banks have not followed, as detailed in our
report, these violations do not directly involve
the antidiscrimination provisions.
In summary, we do not find policies or practices that suggest that individual state member
banks take the race of an applicant into account
when making a credit decision. Moreover, the
very fact that bank personnel know that examiners will be closely scrutinizing their behavior,
through review of bank records, probably has a
considerable influence on helping to discourage
discriminatory conduct by individual employees.
HOME PURCHASE
BY RACE
LENDING
DISPARITIES
In recent years the staff of the Federal Reserve
System has conducted or reviewed several research
studies that have examined the relationship between
the racial composition of neighborhoods and residential mortgage lending. Copies of these materials,
which pertain to Atlanta, Boston, Cleveland, and
Detroit, were included in our report.
The Federal Reserve work has all been based
on information obtained from records of actual
loans granted (either from data obtained pursuant
to the Home Mortgage Disclosure Act or from
local government property records) rather than
from loan application records. Consequently,
these studies do not specifically address the
question raised in section 1220, which is the
extent of mortgage lending discrimination revealed in a review of loan application and disposition records. Nevertheless, the studies do provide some insights into the relationships between
race and home lending.
The studies show the following:
• There are differences in the number and
dollar volume of conventional home purchase
and home improvement loans extended to borrowers in different neighborhoods.
• After accounting for differences in neighborhood income levels, in the number of housing units
across neighborhoods, as well as in other selected
control variables, areas with predominantly black
populations receive fewer home purchase loans, but
more home improvement loans, from commercial
banks and thrift institutions than similar predominantly white neighborhoods.
• A significant portion of the home purchase
finance extended in predominantly black neighborhoods is supplied by nondepository institutions, such as mortgage companies, and, except
for Boston, most of these loans are either government-insured or guaranteed (apparently high
home prices in Boston have precluded some
potential loan applicants from using FHAinsured financing in recent years).
Each of the studies discusses various factors
that may account for these loan patterns. For
example, the Boston study describes in some
detail the complex interaction of demand and
supply in both the housing and mortgage markets
that combine to jointly determine the distribution
of home purchase loans across different neighborhoods. Because the distribution of loans reflects the joint determination of supply and demand factors, many of which are closely related
to each other, interpreting the significance of any
particular variable is extremely difficult.
The studies, however, do not draw definitive
conclusions about the existence or extent of
racial discrimination. They are nonetheless useful because they identify the presence of differential lending patterns across neighborhoods and
thus focus attention on these matters. For example, the finding that mortgage bankers and other
nondepository sources of finance are a dominant
Statements to Congress
source of credit in many predominantly minority
areas has raised questions about the adequacy of
bank and thrift institution marketing and community outreach in these communities. In addition,
the observation that FHA-insured financing is
heavily used in minority middle-income neighborhoods suggests that depository institutions
could garner a larger share of the home loan
market in these neighborhoods if more of them
offered FHA-insured loans or similar low downpayment, privately insured conventional mortgage alternatives. Finally, the existence of these
disparities, regardless of their cause, should at
the very least prompt mortgage lenders to review
their marketing and outreach efforts as well as
their product offerings in minority neighborhoods. We have recently stressed this responsibility in a joint agency policy statement on the
Community Reinvestment Act.
795
The Board was also asked to provide recommendations for appropriate measures to assure nondiscriminatory lending practices. In light of the
recent amendments contained in the FIRREA to
the Home Mortgage Disclosure Act and the
Community Reinvestment Act, we have no proposals for new legislation.
The amendments to the Home Mortgage Disclosure Act will accomplish the following:
• Extend coverage of the Home Mortgage
Disclosure Act to essentially all types of mortgage lenders.
• Require disclosure of data on the disposition
of loan applications (besides data on loans originated and purchased).
• Require disclosure of data on the race, sex,
and income level of borrowers and applicants.
These amendments will provide new information about the characteristics of loan applicants
that will enhance the ability of examiners to
determine whether a lender's credit standards
are being fairly applied. Also, the extension of
the coverage of HMDA to include essentially all
mortgage lenders will provide a more complete
context in which to judge a bank's mortgage
lending efforts.
FIRREA amends the Community Reinvestment Act to provide that after July 1, 1990, the
written evaluation of a depository institution's
record of meeting the credit needs of its local
community made by the institution's regulatory
agency must be disclosed to the public. Public
disclosure will increase the significance of the
evaluation of the bank's performance with that
act because it will likely lead to increased dialogue between banks, examiners, and community groups.
The Board believes that the new enhancements to these two statutes will assist in developing a more complete and accurate picture of
mortgage lending practices than is possible today, and that no additional legislation is necessary. There are, however, several additional initiatives under review by the Board's staff or
subcommittees of the Federal Financial Institution Examination Council (FFIEC), which are
referred to in the report.
In closing, I would like to emphasize the
Board's commitment to vigorously enforcing the
antidiscrimination laws for which it has responsibility. Since homeownership is an important
part of the American dream, we all want to
assure that every American, regardless of race, is
treated fairly if he or she pursues that goal. To
this end, we think that our enforcement program
helps provide confidence that state member
banks are providing mortgage credit on a nondiscriminatory basis.
•
Statement by Alan Greenspan, Chairman, Board
of Governors of the Federal Reserve System,
before the Subcommittee on Domestic Monetary
Policy of the Committee on Banking, Finance
and Urban Affairs, U.S. House of Representatives, October 25, 1989.
I appreciate this opportunity to testify in connection with two pieces of legislation currently before the Congress—the Zero-Inflation Resolution
and H.R. 2795, the Federal Reserve Reform Act
of 1989. Each of these, in its own way, raises
issues that go to the heart of monetary policy-
RECOMMENDA
TIONS
796 Federal Reserve Bulletin • December 1989
making in this country. The resolution would
clarify congressional intent as to the broad objectives of policy, while H.R. 2795 would make
changes in the structure and day-to-day practices
of the Federal Reserve.
The possible implications of the proposed legislation should be given careful consideration. As
our central bank, the Federal Reserve has been
entrusted with a number of responsibilities
deemed essential to the effective functioning of
our economy, including upholding the purchasing power of the nation's currency, facilitating
the smooth operation of payment systems, and
standing ready as the lender of last resort. These
responsibilities and the structure of the Federal
Reserve have evolved from many years of deliberation about the proper role of a central bank in
a democratic society. The question is how such a
society can best construct a central bank that
combines public accountability with the authority necessary to perform effectively.
The answer in the case of the United States has
been the complex structure of the Federal Reserve System, which includes special qualities
germane to the institution's charge. The System
as a whole, including the twelve Reserve Banks,
was established as a balancing of diverse regional
and economic interests. By including representatives of the Reserve Banks on the primary decisionmaking body of our central bank, the Congress and the President signaled the importance
of those regional perspectives and helped ensure
that monetary policy would reflect the needs of
the entire nation. The Federal Reserve also has
been deliberately accorded a significant degree of
insulation from day-to-day political pressures:
For example, the members of the Board of Governors are appointed to fourteen-year terms and
our budgets are not subject to oversight by the
Administration or, more generally, to the authorization and appropriation process. While we
have been given broad guidelines for policy and
report regularly on our plans to carry them out,
the near-term conduct of policy has been explicitly distanced from the political arena. This insulation has not meant isolation, as we coordinate
and consult extensively with both the executive
and legislative branches.
The System has been given an element of
independence within government because the
effective implementation of its special functions
has been perceived to require it. This independence enables the central bank to resist shortterm inflationary biases that might be inherent in
some aspects of the political process. The Federal Reserve must take actions that, while sometimes unpopular in the short run, are in the
long-run best interests of the country. The standard of living of the American people will be
higher over time if we pursue monetary policies
that are consistent with long-term price stability.
Deviating from the path of policies directed
toward long-term stability can create a temporary surge in an economy, but only at a longerterm cost in terms of unemployment and lowered
standards of living that far exceeds the shortterm benefits of revving up an economy.
The structure of the Federal Reserve, as well
as its relationship with other parts of government, has evolved over time as the Congress and
the Executive have sought to define the appropriate role and powers to grant a U.S. central
bank. The considerable debate and study that
went into the establishment of the Federal Reserve did not prevent the government from making major changes in the central bank's structure
as, over time, the need for those changes was
clearly demonstrated. In particular, a midcourse
correction was undertaken in the 1930s. Further,
less striking refinements have occurred in the
intervening years.
The Federal Reserve as it stands today is the
result of many years of informed discussion and
refinement; that need not imply that its structure
is the best of all possible structures. But it is one
that works. It is a system in which the various
parts mesh, and the job gets done. Changing such
an organization, even perhaps improving one or
more parts of it, may well have unforeseen and
unfortunate consequences elsewhere in the
structure. In other words, change, while it may
have benefits, also has potential costs. The fact
that the existing Federal Reserve institutional
structure has been unchanged for many years has
enabled the organization to develop a means of
operation dedicated to the most efficient carrying
out of its responsibilities. When elements of the
structure have been less than optimum, relationships have evolved to compensate. If the structure is altered, time will be required to recom-
Statements to Congress
pensate. In short, for a period of time the efficacy
of the organizational structure will decline.
H.J. RES. 409
The Zero-Inflation Resolution represents a constructive effort to provide congressional guidance to the Federal Reserve. If passed, it would
further clarify the intent of the Congress and the
President as expressed in prior legislation. Legislative direction as to the appropriate goals for
macroeconomic policy in general and monetary
policy in particular have been provided before.
Unfortunately, the instructions have defined
multiple objectives for policy, which have not
always been entirely consistent—at least over
the near term.
The current resolution is laudable, in part
because it directs monetary policy toward a
single goal, price stability, that monetary policy
is uniquely suited to pursue. While such influences as oil price shocks, droughts, depreciation
of the dollar, or excise tax hikes may boost broad
price indexes at one time or another, sustained
inflation requires at least the acquiescence of the
central bank.
Moreover, the objective set in this legislative
proposal would promote the welfare of the American people because price stability is a prerequisite for, over time, maximizing economic growth
and standards of living. As the resolution spells
out, the elimination of inflation would allow the
economy to operate more efficiently and productively by reducing the need to predict and to
protect against inflation. The elimination of inflation would allow interest rates to decline and
would reduce the uncertainty about price trends
that can discourage saving and investment. In
general, as I indicated earlier, over the long run,
price stability is a precondition to the economy
turning in its best possible performance. It is for
this reason that the Federal Reserve remains
determined to reach this goal.
The resolution explicitly recognizes this longrun relationship, and in an effort to get there, it
sets a five-year deadline on eliminating inflation.
Such a deadline is attainable, but it would have
costs. During this transition period, growth could
be reduced for a while from what it otherwise
797
would have been. Because price-setting behavior
in our economy has considerable momentum, the
requisite slowing of demand would tend to translate, in the first instance, into a slowing of real
output and only subsequently into restraint on
prices. In the longer run, of course, whatever
losses are incurred in the pursuit of price stability
would surely be more than made up in increased
output thereafter.
The extent of the near-term slowdown in real
output would be influenced by a variety of factors, including importantly the strength of inflation expectations. At the moment, after seven
years of inflation trending around a 4 percent
annual rate, individuals, businesses, and financial markets appear to believe with some conviction that inflation is likely to remain in this
vicinity. Of course, over the years, monetary
policy will be bringing inflation down further, and
inflation expectations will adjust downward as
well, but the mere passage of legislation such as
this could be helpful in reducing those expectations even more quickly. Nevertheless, with the
nation's last prolonged period of approximately
stable prices now a generation in the past, the
public is likely to remain skeptical until it observes real, consistent progress.
The elimination of inflation is not a simple
mechanical operation. To minimize the costs
associated with the process and to react to unexpected events, the Federal Reserve must retain
significant flexibility. Monetary policy is only
one of many influences on the economy. The
stance of fiscal policy, the condition of financial
markets, and the course of foreign economic
developments are among the other major factors
affecting the economy. As events unfold, adequate policy responsiveness requires ongoing
judgment and flexibility in decisionmaking by the
monetary authorities.
Various other influences on the economy can
prove either helpful or harmful in the process of
eliminating inflation. For example, maintaining
free and open markets for products and productive resources is a key factor in facilitating that
process. Competitive markets provide the most
efficient and complete employment of resources,
allowing the economy to grow at its potential.
The flexibility provided by free markets is especially beneficial during periods of transition, such
798
Federal Reserve Bulletin • December 1989
as that implied by this resolution. Thus, reducing
unnecessary regulations and rigidities could, by
enhancing market flexibility, lessen the strain of
adapting to a stable price environment. This
conclusion applies with respect both to domestic
impediments and to international barriers; protectionism can raise the costs of lowering inflation.
The federal deficit also would affect the path to
price stability. To the extent that the federal
government restrains its demand, the need for
restraining private sector credit demand would
be reduced, and funds would become more available for that sector. In other words, the degree of
monetary policy restraint implicitly mandated by
the resolution's five-year deadline would be lessened by better balance in the federal government's accounts.
The Federal Reserve Board fully supports the
thrust of the current resolution because price
stability is in the best interests of the nation and
because it is achievable. But the reminder that
significant costs could accompany the transition
to stable prices is also a reminder, both to the
Federal Reserve and to the rest of the government, that efforts would have to be made to
minimize those costs. By minimizing the transition costs, we ensure the continued willingness
to pay those costs so that we may realize the
long-term, and very substantial, benefits of price
stability.
H.R.
2795: SECRETARY
OF THE
TREASURY
In the remainder of my testimony, I will take up
each of the provisions of the second piece of
legislation under consideration, H.R. 2795, in the
order in which it presents them. The first provision would make the Secretary of the Treasury a
member of the FOMC. I understand, however,
that this provision is being changed instead to
require periodic meetings between the FOMC
and representatives of the Administration.
I was pleased to hear that the original provision would disappear, because expanding the
Secretary's responsibilities in that manner could
have significant, adverse effects on monetary
policy. As you know, legislation in 1935 explicitly removed the Secretary from the Federal
Reserve Board, and the clear intent of the Congress in doing so was to assure that the Federal
Reserve would be insulated from day-to-day political pressure and influence by the Treasury
Department and the Administration. Placing the
Secretary of the Treasury on the FOMC would
have torn away an essential part of that insulation. Moreover, as the Administration official
responsible for funding the federal government,
the Secretary might face conflicting goals—on
the one hand, the immediate need to finance the
deficit at the lowest possible interest rates, and,
on the other, the obligation to support a monetary policy consistent with a stable economic
environment over time.
The substitute provision replaces that more
radical change with the requirement to hold
several meetings each year. I am fully in favor of
productive exchanges of information and opinions between members of the FOMC and members of the Administration. In fact, there already
exist a large number of forums in which those
views are aired, providing ample opportunity for
the Administration to make us aware of its perspective. We maintain a close working relationship with the Secretary and the Treasury generally, as well as with other departments and
agencies, including the Office of Management
and Budget. Board and Treasury staffs are in
daily communication with each other, and the
Secretary and I meet at least once a week. I also
meet often with the Chairman of the Council of
Economic Advisers, and I speak frequently by
telephone with both the Chairman and the Secretary.
As a consequence of these contacts, both the
Administration and the Federal Reserve are
fully informed about each other's views on the
economy and their plans for policy. These
interactions contribute to the coordination that
is so necessary in carrying out the nation's
economic policy. Moreover, to ensure the continued coordination of macroeconomic policy,
the Full Employment and Balanced Growth Act
of 1978 already requires us, in our semiannual
reports to the Congress, to relate our objectives
to the economic goals set forth by the Administration.
Notwithstanding the existing channels, I
would support expanding these contacts if the
Statements to Congress
individuals involved feel that it would be useful.
Specifically, more frequent meetings of the socalled Quadriad—the Secretary of the Treasury,
the Chairman of the Council of Economic Advisers, the Director of Management and Budget,
and the Chairman of the Federal Reserve Board,
with or without the President—might be useful.
What I do not favor is the creation of unnecessary and duplicative arrangements, which would
set up highly formalized channels of communication, such as those apparently called for in the
substitute provision.
Under this proposal, the required meetings,
involving the FOMC and the Quadriad, would
take place immediately before certain, key
FOMC meetings. Although intended only to improve the coordination of economic policymaking, the proposal, by subjecting the FOMC to a
more intensely political perspective, could risk
bending monetary policy away from long-term
strategic goals.
The ability of the Federal Reserve to conduct
monetary policy as it does today—with relative
freedom from day-to-day pressures from the Administration, as provided by the Congress itself—has served the nation well over the years
and should be retained.
H.R.
2795: COTERMINUS
TERM
The satisfactory performance of the status quo
also enters into the debate surrounding other
provisions of the bill. One section would alter the
schedule on which the Chairman of the Board of
Governors is appointed. While generally maintaining the current, four-year length of that term,
it would make it begin one year after the beginning of a presidential term, thereby always allowing a new President to appoint a new Chairman
about a year after inauguration. Should the
Chairmanship become vacant prematurely, an
appointment could be made only for the remainder of the unexpired term. By contrast, the
present system has an element of chance: All
Chairmen are appointed to four-year terms, and
because some did not serve out their full terms,
the relation of the Chairman's term to that of the
President has changed over the years.
799
Proposals to change to coterminus, or approximately coterminus, terms have been discussed
and debated for more than twenty-five years. The
main reason advanced for making the change has
been to promote better coordination of macroeconomic policy between the Administration and
the Federal Reserve. The prompt appointment of
a compatible Chairman would help ensure that
monetary policy complements the Administration's policy stance, and it would reduce the
potential for prolonged policy conflicts. In addition, there has been some concern that current
law could result in the Chairman's appointment
regularly occurring during the very politicized
atmosphere of a presidential election. On the
other side of the debate, opponents have argued
that the change would move too much in the
direction of linking the Federal Reserve to the
White House and it would run counter to the
important principle of maintaining the Federal
Reserve's policy at some arm's length from the
Executive.
At various times over the years, the Federal
Reserve has both supported and opposed proposals of this type. Having looked at the arguments
on both sides, I do not find those in favor of the
change to be particularly persuasive. As I indicated earlier, ample opportunities for coordination of policy already exist. In addition, I am
concerned that linking the Chairman's term to
the President's would imply less independence
from the White House than what has prevailed
up to now. Moreover, some practical problems
could arise in response to the need to fill an
unexpired term. For example, should the Chairmanship open up with only a relatively short time
left to run, it might be very difficult to induce the
best qualified person to accept the position on a
short-term basis, as an intervening presidential
election would prevent any assurance of reappointment.
To my mind the present arrangement has
worked reasonably well. I do not perceive strong
advantages in changing it.
H.R.
2795: IMMEDIATE
DISCLOSURE
Another provision of the bill would affect the
daily implementation of policy by requiring the
800 Federal Reserve Bulletin • December 1989
immediate disclosure of all monetary policy actions. The argument for this proposal rests on the
importance of openness and accountability in our
government, and on the perceived value of
promptly giving markets all available information.
I agree that these are vital characteristics, and
I believe that the Federal Reserve's record on
this score has been good. We make our decisions
public immediately, except when doing so could
undercut the efficacy of policy or compromise
the integrity of policymaking. When we change
the discount rate or reserve requirements, those
decisions are announced at once. When we establish new ranges for money and credit growth,
those ranges are set forth promptly in our reports
to the Congress. And when the Congress requests our views, we come before this committee
and others to testify. Moreover, we publish our
balance sheet every week with a one-day lag.
What we do not disclose immediately are the
implementing decisions with respect to our open
market operations. However, even the operating
targets ultimately are released to the public. We
publish a lengthy record of the policy deliberations and decisions from each Federal Open
Market Committee meeting shortly after the next
regular meeting has taken place. In this respect,
the Federal Reserve compares very favorably
with the central banks of other major industrial
nations.
The immediate disclosure of any changes in
our operating targets would make this information available more quickly to all who were
interested, but it also would have costs. Simply
put, this provision would take a valuable policy
instrument away from us. It would reduce our
flexibility to implement decisions quietly at times
to achieve a desired effect while minimizing
possible financial market disruptions. Currently,
we can choose to make changes either quite
publicly or more subtly, as conditions warrant.
With an obligation to announce all changes as
they occurred, this distinction would evaporate;
all moves would be accompanied by announcement effects akin to those currently associated
with discount rate changes. If markets always
accurately assessed the implications of such announcements, incorporating them into the structure of prices, then market efficiency might be
enhanced by making our open market objectives
public immediately. However, prices can, and
do, overreact to particular announcements, as
the stock market movements of the last two
weeks seem to confirm. The loss of flexibility
implied by the announcement requirement would
be regrettable, especially in view of the inevitable
uncertainties surrounding the outlook for financial markets and the economy.
The need for flexibility is especially pressing in
times of acute financial unrest. At those times, it
is imperative that the Federal Reserve remain
able to respond promptly and in whatever manner is most appropriate to the moment. The
fluidity of financial crises requires the same kind
of fluidity in our response. Some types of announcements could well be helpful in such circumstances—as, for example, the very general
statement made at the time of the October 1987
stock market crash appeared to be. However, it
would be ill advised and perhaps virtually impossible to announce short-run targets for reserves
or interest rates when markets were in flux. Our
open market operations might depend on market
conditions at the moment and might not be
accurately represented by an announcement of a
particular goal for reserves or interest rates.
Moreover, the specific instrument settings might
themselves be changing as developments unfolded. Markets are often prone to overreact at
times when the financial system appears fragile,
and under these conditions, the requirement to
publicize each change could risk further unsettling the markets.
In the normal course of events, a publicannouncement requirement also could impede
timely and appropriate adjustments to policy. In
recent years, the Federal Reserve has been most
successful when it has anticipated pressures on
the economy and has moved promptly to counter
them. The immediate announcement of changes
to our instrument settings could adversely affect
the policymaking process that has made this
possible and could impart a degree of sluggishness to policy responses. The Federal Reserve
might be forced to focus more on the announcement effect associated with its action, than on the
ultimate economic impact.
Currently, the basic policy stance of the Federal Reserve is reviewed by the Congress and the
Statements to Congress
nation when we present our semiannual report on
monetary policy. The longer-run ranges for
money and credit, along with other considerations set forth in those reports, constitute the
framework within which shorter-run, implementing actions are taken. Should the basic policy
objectives change, that would be announced
promptly. The current debate concerns only the
immediate disclosure of operational decisions
connected with carrying out those basic objectives. Our conclusion is that mandating such
announcements would yield only marginal rewards, but could significantly reduce the effectiveness of policy.
H.R. 2795: GAO AUDIT
A similar conclusion holds with respect to the
bill's next provision, which would extend the
scope of the General Accounting Office's audits
of the Federal Reserve by allowing the GAO to
review our monetary policy activities. The monetary policy area was one of the very few areas of
Federal Reserve activity explicitly exempted
from review by the Federal Banking Agency
Audit Act of 1978, which authorized GAO audits
of the remaining functions.
We fully appreciate the interest of the Congress and the public in the conduct of monetary
policy. Indeed, surveillance and disclosure of
governmental activities are essential in a democratic society. It is only when certain aspects of
these requirements undercut the capability of an
agency to carry out its mandate from the Congress that they may not be in the public interest.
There is a tradeoff of values—the valid desire of
the public for surveillance and disclosure relative
to the value to the public of effective policy.
The benefits proposed by H.R. 2795 would in
my judgment be small because the enhanced
GAO audit would tend to duplicate functions that
are already performed. Specifically, the monetary policy function of the Federal Reserve is, in
effect, already audited by the Congress itself
when we present testimony and semiannual monetary policy reports. Moreover, a vast and continuously updated literature of expert evaluations
of U.S. monetary policy exists. The contribution
that a GAO audit would make to the active,
801
public discussion of the conduct of monetary
policy in this country is not likely to outweigh the
possible negatives.
Those negatives would include a potential
compromising of Federal Reserve effectiveness,
in part because the FOMC might feel heightened
pressure from the Congress, through this channel, to exercise other than its best professional
judgment on policy matters. Even aside from the
possibility that this provision might influence the
stance of monetary policy, GAO scrutiny of
policy deliberations, discussions, and actions
could impede the process of formulating policy.
A free discussion of alternative policies and
possible outcomes is essential to minimize the
chance of policy errors. The prospect of GAO
review of formative discussions, background
documents, and preliminary conclusions could
have a chilling effect on the free interchange and
consensus building that leads to good policy.
Responsible review of policy results is welcome—a function already performed by the Congress itself—but second-guessing of the policy
process could prove detrimental to that process,
and ultimately to the effectiveness of policy.
H.R. 2795: THE BUDGET PROCESS
At this point, I would like to turn to the final
section of the bill, the section related to the
budgetary treatment of the Federal Reserve. This
issue of budgetary treatment is one that has been
considered many times. After each review, the
Congress has concluded that the Federal Reserve's functional independence is inseparable
from its budgetary independence. Subjecting the
Federal Reserve's budget to review by the Administration and to the appropriations process
could allow inappropriate political pressures to
be brought to bear on the monetary authorities
and on the making of monetary policy. The
current proposal exhibits some sensitivity to this
issue by providing that the Federal Reserve
budget would be included in the budget by the
President without change. In addition, as we
understand it, the bill does not intend to subject
the Federal Reserve to the appropriations process, although it is not explicit on this point.
Nevertheless, the bill represents a potential first
802 Federal Reserve Bulletin • December 1989
step toward placing both the Federal Reserve
budget and Federal Reserve policy more closely
under short-run political control.
The benefits of making this change would be
minor compared with the costs because substantial and detailed information on the Federal Reserve's spending and operations is already available. Budgets for both the Board of Governors
and the Reserve Banks are discussed and approved in public meetings of the Board. This
committee holds annual oversight hearings at
which we present testimony on these budgets,
with a full airing of issues related to our revenues
and expenditures. The budget of the Board is
published annually as an information item in the
appendix to the federal budget, and the estimated
net income of the System is currently included in
the budget itself. In addition, since 1986 we have
published a separate Budget Review supplement
to our annual report; this supplement was developed explicitly to present the details of our
financial stewardship in a comprehensive, yet
accessible, manner. Finally, very detailed data
on the Federal Reserve's spending, drawn directly from our accounting and management information system, are made available to the
public on a quarterly basis.
Bringing the Federal Reserve into the budget
document would not enhance the available information about our revenues and expenditures, nor
would it change the way our activities affect the
fiscal balance. The Federal Reserve's large net
earnings are paid over to the Treasury each year
and are properly recorded as a receipt in the U.S.
budget. Thus, the budget already reflects the
influence of Federal Reserve operations on the
overall fiscal position of the government.
Requiring the Federal Reserve to make budget
submissions would translate into requiring the
institution to maintain a dual accounting system.
The Federal Reserve currently keeps its books
according to generally accepted accounting principles, and would have to continue to do so for a
variety of reasons, including the requirement of
the Monetary Control Act that we price our
services competitively. Thus, a shift to federal
budget accounting would require not merely a
one-time change, but ongoing duplicate accounting. As a result, to provide meaningful data for
the federal budget document, the Federal Re-
serve would have to incur several million dollars
a year in additional expenses.
I certainly share the view that the Federal
Reserve must be fully accountable to the American people for its spending, as well as for its
policy actions. We regard it as our duty to give a
complete, public accounting of our operations.
But this proposal would yield very little in the
way of benefits to the American people while
entailing some real costs.
Integrating Federal Reserve expenditures into
the federal budget, contrary to our entire history
and earlier congressional decisions, would, I
fear, be interpreted as a clear step toward heightened political influence and control over the
central bank.
CONCLUSION
In reviewing the legislation before us today, it is,
broadly speaking, the appropriate degree of guidance and control over the Federal Reserve that is
at issue. The Zero-Inflation Resolution is an example of appropriate guidance for the central
bank if the Congress chooses to go in this direction. In further clarifying the government's longrun goals for monetary policy, the resolution
would provide a broad framework and direction
to the Federal Reserve. While we at the Federal
Reserve sympathize with the desire for openness
and accountability embodied in H.R. 2795, our
considered view is that the provisions of this bill
move only marginally, if at all, in this direction.
Moreover, the proposed changes could well
prove detrimental to the implementation of effective monetary policy. In the Board's judgment—
as citizens, not just as members of the Federal
Reserve System—it is a poor tradeoff.
In this regard, several points warrant repeating: First, that the independence of the Federal
Reserve has, in practice, served the country
well; second, that the Congress, in revisiting this
issue on numerous occasions, has repeatedly
reaffirmed that independence; and third, that
while each proposal alone might represent only a
small step, taken together they would erode this
independence and, with it, the Federal Reserve's
ability to carry out its responsibilities.
Statements to Congress
803
The Federal Reserve is part of government,
operating with the other arms of government to
further the economic objectives of the nation.
The Federal Reserve is always subject to change
through the legislative process. But in making
changes, I would urge you to be sure there are
sufficiently compelling considerations of policy
in favor of the change. Those factors must be
judged to outweigh the pragmatic considerations
of tampering with a structure that has proved
resilient and useful, as well as the risks of impairing our long-run prospects for economic growth.
In the past, the Congress has steadfastly supported the independence of the Federal Reserve.
I can only encourage the Congress now to reaffirm this commitment.
•
Statement by Manuel H. Johnson, Vice Chairman, Board of Governors of the Federal Reserve
System, before the Committee on Banking,
Housing, and Urban Affairs, U.S. Senate, October 25, 1989.
OVERVIEW
I welcome the opportunity to be here today to
present the views of the Federal Reserve about
the condition of the nation's banking system.
During the last several years, the U.S. financial
system has had to operate in an environment
characterized by rapid change that has led to
significant pressures on many institutions. The
landmark legislation that the Congress recently
enacted to deal with the savings and loan industry is a visible illustration of the problems that
certain segments of our depository institutions
industry have encountered in recent times. Although the problems of the U.S. banking system have been far less than those of thrift
institutions, the banking industry is only now
emerging from a difficult period in which historically large numbers of banks have failed. It is
important as we go forward that we remain
vigilant in our supervisory efforts to ensure that
the banking system continues to rebuild its
strength and maintain the confidence of the
general public.
In my remarks today I will provide the Board's
views of the general strength and outlook for the
U.S. banking industry and of the principal issues
that we face. I will also discuss some of the
actions the Board has taken to foster a sounder,
more resilient, and competitive banking system.
In the process, I will generally address the areas
cited in the committee's invitation letter. I would
like to begin with an overview of current banking
conditions.
An important theme when describing the recent
performance of the banking industry is that many
institutions have made progress toward increasing their earnings and strengthening their reserves and capital base. The pace of improvement may be slower than we would like, bank
failure rates continue to be unacceptably high,
and clear pockets of real and potential problems
remain. Moreover, some large institutions, in
particular, are reporting third-quarter losses due
to asset quality problems that will give many of
them losses for the year. Nevertheless, the industry seems to be better prepared to deal with
its problems now than it has been in several
years.
The progress—and the problems—that the industry has seen reflect in large part the length and
nature of the current business cycle. Although
we are currently benefiting from the longest
peacetime expansion in U.S. history, it has not
been felt equally by all sectors of the economy.
The energy sector has been hurt severely by
lower oil prices; the agricultural sector has been
buffeted at times by low commodity prices and at
other times by poor crop yields; conditions
abroad have adversely affected the quality of
many foreign loans and the strength of export
markets; and the volatility of interest and exchange rates has increased the risks in many
business sectors. These events have also contributed to excess supplies of real estate properties
in some regions of the country that, at times,
have produced sharp declines in real estate values. Those declines have not only created severe
problems for many thrift institutions, but they
have also affected some banks.
Technological change, financial innovations,
804 Federal Reserve Bulletin • December 1989
and increased competition have also altered the
environment for at least the major banking institutions. Foreign institutions, for example, have
continued to increase their market share of U.S.
business loans. Some of those foreign institutions
have had lower capital standards and broader
powers, providing them with a competitive edge.
Many of the larger U.S. banking organizations
have addressed this challenge, in part, by expanding their so-called off-balance-sheet activities, such as interest rate swaps and financial
guarantees, and by devoting more energy to
developing new financing techniques. They have
also
requested—and
received—somewhat
broader powers so that they can continue to
compete with both nonbank firms and foreign
banks.
The growing movement toward interstate
banking has further altered the competitive environment for U.S. banks. The number of mergers
and acquisitions of major financial institutions
has increased sharply in recent years due to the
failure of some large institutions and to the
adoption of regional interstate compacts by many
states. In general, these structural changes
should help U.S. banks compete in world markets by increasing their financial strength and
operating efficiencies. It may also, however, present them with additional challenges to implement the organizational and operating changes
they need to manage their risks effectively. As
banking regulators, we need to monitor these
developments carefully in the months and years
ahead as the industry continues to revise its
structure and as we resolve the insolvent savings
and loan associations.
RECENT
FINANCIAL
PERFORMANCE
Let me now turn to more specific indicators of
recent banking industry performance. In general,
these measures have shown an improvement in
recent periods, especially for the regional institutions that are less exposed to heavily indebted
foreign countries.
Profitability. Earnings of the U.S. banking
industry rebounded strongly during 1988. Average return on assets during 1988 for all insured
commercial banks was 0.80 percent, compared
with 0.11 percent in 1987. This recent performance represented the highest reported profitability measure for the industry in decades. Importantly, the strongest performance was
reported by many of the largest banks, which
were responsible for the industry's losses in 1987
and which have the greatest need to strengthen
their capital positions. The twenty-five largest
bank holding companies, for example, reported a
return on assets for 1988 of 0.90 percent, mostly
reflecting the earnings of their subsidiary banks.
Their 1988 results, however, reflected loan-loss
provisions that, as a percent of assets, were
significantly lower than they had been in recent
years.
For many institutions, last year's relatively
strong earnings performance has continued into
1989, as well. During the first half of the year,
both the largest banks and the banking industry
reported annualized average returns on assets of
about 0.90 percent. Most recently, however,
some of the largest institutions have substantially
increased their provisions for loan losses, which
will temper the earnings gain that much of the
industry has made.
Much of the earnings improvement last year
reflected sharply lower loan-loss provisions by
the largest institutions, but other factors were
also important, as well. Many of the larger companies, in particular, have increased their emphasis on generating noninterest revenues and on
controlling operating expenses. Noninterest income of the twenty-five largest bank holding
companies, from such sources as investment
banking, asset sales, service charges, and loan
commitments, as well as from foreign exchange
and securities trading and other activities, has
more than doubled in the past five years relative
to total assets. That trend may continue as the
largest banking organizations search for ways to
improve investor returns while minimizing their
credit risks and their need for additional shareholder funds.
The relatively low level of loss provisioning
continued through the first half of 1989, as well.
However, by the third quarter, many of the
largest companies had announced substantial additions to their reserves, mostly in anticipation of
further losses among their foreign loans and
Statements to Congress
domestic real estate credits. The latest provisions give several of the largest U.S. banking
organizations reserves for developing country
loans that exceed 50 percent of their exposure.
The appropriate amount for the reserve depends partly on the strategy of the lender toward
this business. The indebted countries clearly
need some access to new financing. Those institutions that take a long-term view and are prepared to work with the borrowers may well
realize higher returns on their loans than will
those who are willing to take near-term losses
and withdraw from that market. There is no
magic number regarding the appropriate volume
of reserves for these loans. Nevertheless, our
policy has been, and remains, to require additional reserves, when we believe that conditions
warrant.
The third-quarter losses that some large companies have reported, while troubling, should
better position the companies for the future.
Moreover, some companies have coupled their
announcements of special provisions with disclosure of plans to issue significant amounts of
additional common stock. While efforts to resolve asset quality problems must continue, actions that increase loan-loss reserves and
strengthen capital are welcome.
Asset Quality. Asset quality remains the principal concern facing the industry. Some earlier
problems seem to have receded, such as those in
the agricultural sector that ravaged many midwestern banks, but others remain. Loans to some
highly indebted countries continue to undermine
the near-term earnings and competitive positions
of some of the largest organizations, and the real
estate markets have softened in several formerly
buoyant sections of the country.
Real estate markets in New England, parts of
the Southeast, and broad areas of the Southwest
show the most visible signs of weakness. Problems in the Northeast have recently led several
institutions there to make substantial provisions
for real estate losses. Most of those expected
losses, in turn, involve development and construction projects, including condominium
projects, in particular. Recent trends in commercial vacancy rates, combined with other factors
that could adversely affect that region's econ-
805
omy, could lead to problems for other banking
institutions, as well.
Relative to total assets, the volume of nonperforming assets for the industry increased during
the first half of 1989, after having declined during
1988. The volume of weak assets remains stubbornly high for the larger banking organizations,
in large part due to their exposure to foreign
borrowers. Nonperforming assets of the twentyfive largest bank holding companies increased
slightly to 3.1 percent of their total assets at
midyear, which is well above the average 2.2
percent reported by all holding companies. I will
say more about the foreign debt situation later.
Exposure to highly leveraged borrowers, including involvement in leveraged buyouts and
other highly leveraged financings, also has important implications for the risk profiles of banking institutions. Such transactions can be important vehicles for the necessary restructuring of
some companies and, in this way, may contribute
to the operating efficiency and financial performance of U.S. businesses. Nevertheless, the
higher debt levels and relatively lower equity
cushions that characterize such transactions can
also weaken the borrower's ability to withstand
financial adversity and, other things being equal,
can raise the level of risk in bank loan portfolios.
At midyear 1989, the fifty largest bank holding
companies had total loans and commitments to
highly leveraged borrowers of more than $100
billion, an increase of 20 percent from the level
they reported at the end of 1988. Although the
vast majority of these claims are in the form of
senior debt, the amounts outstanding are substantial for many companies, both in absolute
terms and relative to their equity capital. This is
clearly an area that warrants particularly close
attention by bank managers and supervisors
alike.
Capital Adequacy. An important indicator of
the strength of the banking system is the measure
of capital adequacy. Accordingly, developing
both an accurate measure and an appropriate
standard for evaluating the capital adequacy of
banking organizations has always been of prime
importance. The international risk-based capital
standard adopted during the past year represents
a milestone in international cooperation and
806 Federal Reserve Bulletin • December 1989
should help to strengthen capital standards
throughout the world.
Although the new standard is not effective
until the end of 1990 and will not be fully implemented until two years later, most banking organizations are focusing on those requirements
now. We estimate that about 94 percent of the
nation's commercial banks met or exceeded the
minimum risk-based capital standard at midyear,
even under the more rigorous 1992 definitions.
Even many of the large regional and money
center bank holding companies meet the standard, or are well on their way toward meeting it.
The actions some companies have taken to
raise additional capital in response to the future
risk-based capital requirements also improve
their capital ratios, as measured by current standards. Primary capital, for example, which includes equity capital, loan-loss reserves, and a
few other components, averaged 8.25 percent of
adjusted assets at midyear 1989 for all bank
holding companies with assets exceeding $150
million. That figure compares with 8.08 percent
at the end of 1988 and with 7.90 percent the year
before. This general improvement has been widespread.
Much of the improvement in recent years has
come through slower asset growth, especially on
the part of the larger institutions. During 1988,
total assets of all insured commercial banks grew
only 4.4 percent, compared with rates of 7 to 8
percent during the first half of this decade and
with rates in the mid-to-low teens during the
1970s. Average asset growth among the twentyfive largest banks has virtually stopped, increasing by only 0.6 percent last year after having
been virtually unchanged during 1987.
Some of that slowdown reflects efforts to meet
stronger capital standards, reduce foreign exposure, securitize assets, and focus on off-balancesheet and other fee-generating activities. Growth
of outstanding loan commitments and foreign
exchange and interest rate contracts, for example, has been much stronger than asset growth in
recent years. Transfers of certain securities activities from banks to bank holding company
affiliates also explain some of the slow growth
by these large banks. Measured on a consolidated holding company basis, the twenty-five
largest institutions grew 4.2 percent last year.
The risk-based capital standard imposes specific minimum ratios for "Tier 1" (largely equity)
capital as a percent of assets. That emphasis on
equity should support and, we hope, help to
extend the improvement we have seen in equityto-asset ratios. At the end of 1988, for example,
bank holding companies with assets exceeding
$150 million reported equity equal to nearly 6.0
percent of their total assets—more than a percentage point higher than at the beginning of the
decade. Although the twenty-five largest companies reported a lower average equity ratio of 5.33
percent, their relative improvement was even
greater during that period.
The problems of the thrift industry have demonstrated the need for financial institutions to
maintain adequate levels of tangible capital to
absorb unexpected losses. The Federal Reserve
shall continue to enforce prudent standards for
state member banks and bank holding companies
and ensure that these capital standards remain
sound. The role of intangible assets, such as
goodwill, in the capital measure for banks is
minor now and will decline further during the
next few years as the new standards are put in
place. We shall also continue our efforts to
coordinate those standards internationally so
that they are administered similarly throughout
the world and that U.S. banking organizations
can compete worldwide on a more equitable
basis.
The committee has asked whether the Federal
Reserve believes that the U.S. banking system
currently has sufficient capital to protect the
public interest and avoid a serious drain of the
bank insurance fund. Many bankers will testify
that we seem constantly to urge higher levels of
capital. Increased risks resulting from greater
competition, expanding powers, and a rapidly
changing environment for banking services suggest that some institutions should have materially
higher levels of shareholder funds. In those
cases, we have and shall continue to urge institutions to raise the necessary funds. Over all,
though, the committee should recognize the considerable progress the industry has made to improve its capital position.
Besides issuing more equity securities, the
domestic banking industry has generated substantial funds through increased retained earn-
Statements to Congress
ings. Over the past several years, a trend toward
higher earnings and lower dividend payout rates
of large banks was especially helpful in that
regard. During the past five years, the retained
earnings of all insured U.S. commercial banks
rose $39 billion, or 79 percent. By comparison,
their total assets grew only 31 percent.
The new risk-based capital standard will identify the need for capital by relating the requirements to the specific composition of risk each
organization accepts. The measure, however, is
not a panacea and cannot be put on automatic
pilot and then ignored. An adequate capital standard is a critical element of a sound supervisory
system, but it is only one of many components.
Vigilant supervision, thorough examinations,
and prompt enforcement actions are other essential elements that I will address next.
EXAMINATION
EFFORTS
The Federal Reserve believes that frequent onsite examinations are a critical component of an
effective supervisory framework. In this regard,
the Federal Reserve's policy is to examine all
state member banks and bank holding companies
with significant operations on an annual basis,
either directly or in conjunction with state supervisory agencies. Problem institutions are examined more frequently and are subject to other
more rigorous supervisory reviews.
Conditions of the past several years, in both
the banking and thrift industries, have imposed
significant pressures on our field examination
resources. This year, in particular, our involvement in thrift institution examinations and closings has forced us to postpone the regular periodic examinations of some institutions that
appear to be healthy and to limit the examination
scope of others. While we can make such adjustments temporarily, we cannot do so for extended
periods. Such actions would increase the possibility that problems could develop and grow
without early detection. In light of these and
other developments I have discussed in this
statement, it is crucial that we continue to devote
adequate resources to onsite examinations and
other critical supervisory functions. It is also
essential that we take any steps necessary to
807
attract and retain qualified field examiners and
supervisory personnel.
INTERNATIONAL
DEBT
SITUATION
A significant area of concern for some of the
nation's largest banking organizations continues
to be their exposure to developing countries. The
U.S. banking system is now much less vulnerable to debt-servicing difficulties by these countries than it was in the early 1980s. That is not to
say that the problem is behind us. At midyear,
exposure to problem debtor countries still represented more than 90 percent of the combined
primary capital of the nine most internationally
active U.S. banks and almost 40 percent of the
capital of thirteen others.
Fortunately, though, this vulnerability continues to decline from much higher levels a few
years ago. During 1988, alone, those twenty-two
large banks reduced their net exposure to problem debtor countries almost $9 billion. In the first
six months of this year, they reduced it another
$4.5 billion. This progress has been made by
reducing the exposure through a combination of
asset sales, swaps, and chargeoffs, and, more
important, by strengthening the capital and reserve base of the lending institutions. Indeed, by
creating strong levels of reserves, most regional
and superregional banking organizations have
nearly removed these exposures as a major determinant of their financial strength.
Several large banks have recently further increased reserves against developing country
debt. On balance, the Board views this as a
positive development toward strengthening the
banking system. However, both the banks and
the regulatory agencies must continue to review
these reserves on an ongoing basis to ensure that
the level of bank reserves and capital is appropriate to current circumstances. Moreover, from
the banks' own perspective as well as from the
perspective of the international economy, commercial banks should continue to work with the
borrowers and the international institutions in a
continuing cooperative effort to improve the
economies of these countries and, thereby, their
ability to service their debts.
808 Federal Reserve Bulletin • December 1989
PROBLEM AND FAILED
INSTITUTIONS
During 1988, the number of failed banks had
reached another postwar high of 200 institutions,
compared with 184 in 1987. An additional 21
banks with assets of $13.5 billion were operating
with Federal Deposit Insurance Corporation
(FDIC) assistance while a permanent solution
was being reached. Since the total failures included numerous subsidiaries of several of the
largest Texas banking organizations, the assets
of the failed banks soared to $40.3 billion in 1988
from $6.9 billion the year before.
Both the number and size of bank failures have
continued at high levels this year. Through September 1989, 160 commercial banks had failed,
with total assets of $25.7 billion. The failures
were heavily concentrated in the Southwest.
Failures in the West and Midwest declined during 1988 from their 1986-87 peaks and accounted
for only twenty failures in the first nine months of
this year. With respect to the Federal Reserve's
specific activities, nine state member banks have
failed through September, compared with twentyone for all of 1988.
The number and assets of problem institutions
also remain historically and unacceptably high
but also appear to have peaked. Both figures
declined slightly in 1988 and have dropped further during 1989. At the end of the third quarter,
1,166 commercial banks were considered problem institutions by the FDIC, compared with a
high of 1,575 banks at the end of 1987. Most of
them are located in the Southwest, while conditions in the West and Midwest have improved.
Softness in the automobile industry could aggravate economic conditions in the Midwest but,
barring new major problems, should not reverse
the trends toward fewer problem banks in that
area.
SUPERVISORY
INITIATIVES
AND
REGULATORY
The Federal Reserve, often in cooperation with
the other federal bank regulatory agencies, has
adopted a number of significant measures in
recent years to address real and potential risks in
banks. As indicated earlier, we have also pro-
vided significant examination resources to help
identify and resolve insolvent thrifts. Several of
the major new initiatives are summarized below.
Capital Standards. Late last year the Board
adopted a new risk-based capital standard for
state member banks and bank holding companies
that was based on negotiations conducted
through the Bank for International Settlements.
As I have suggested, this international standard
emphasizes the need for "core" shareholder
funds, recognizes risks in certain off-balancesheet activities, and varies the amount of capital
required for various types of assets by the
amount of perceived credit risk contained in each
asset or exposure. This standard should tailor
each institution's capital requirements more
closely to its willingness to accept risk and
should also lead to more equitable competition
among major banks worldwide.
The Board fully supports strong capital standards and has worked hard to improve the capitalization of the banking industry. Our influence
comes not only through supervisory actions but
also from administering the bank holding company application process. When deciding requests of banking organizations to merge with or
acquire other institutions, the Federal Reserve
has required and will continue to require applicants to raise additional shareholder funds, when
necessary. This process will involve prohibiting
poorly capitalized institutions from expanding
through mergers and acquisitions and, at times,
may even require other companies to strengthen
their financial positions further. In that way, the
structural changes occurring within the industry
can lead to a stronger banking system.
Highly Leveraged Financings (HLFs). Early
this year the Board revised its 1984 examination
guidelines on HLFs, including leveraged buyouts, to strengthen its cautionary language and to
stress further the need for lending institutions to
thoroughly evaluate the financial strength of the
borrowers. The new statement emphasized the
importance of the following: (1) evaluating cash
flows under varying economic conditions, (2)
setting reasonable "in-house" limits on the consolidated exposure of HLF borrowers, and (3)
establishing specific policies, procedures, and
Statements to Congress
controls for HLF lending. The statement also
urged banks to price these credits prudently to
reflect adequately the trade-off between risk and
return and to avoid compromising sound banking
practices in a search for market share and shortterm gains.
The Federal Reserve Banks have also employed these guidelines to give special attention
to loans to customers with exceptionally high
debt profiles. In this connection, the federal
banking agencies have recently developed a definition of highly leveraged financings that they
can use for examination and supervisory purposes. Such a consistent definition should help
identify trends and compare the exposures of
individual institutions.
New Securities Powers. Earlier this year, the
Board agreed to permit several large U.S. bank
holding companies to expand their securities
activities by underwriting, on a limited basis,
corporate debt and equity within the United
States. However, before the companies could
conduct those new activities they were required
to demonstrate that they had adequate capital,
managerial expertise, and controls. The Board
granted its permission immediately for them to
underwrite commercial debt instruments, and
by midyear four companies had done that.
However, the Board has withheld for at least
one year its consent for them to underwrite
equities. By its conditional approval, however,
the Board indicated its willingness to allow
U.S. banking organizations to provide that service, if proper systems are in place to control
the risks.
This decision was made in response to changing market conditions and competitive positions
and on the basis of existing authority granted in
the Bank Holding Company Act. The Board was
mindful of any increased risks such activities
might present to the organization's core banking
business and took special steps to ensure that the
new underwriting powers were separated from
the activities of any subsidiary bank(s) and that
appropriate prudential safeguards were in place
to protect affiliated banks. It also took special
steps to ensure that the banking organizations
conducting these activities were well capitalized
or that they raised additional equity to support
809
these incremental risks. That approach should
improve the ability of domestic bank holding
companies to compete more effectively with foreign and nonbank institutions, while protecting
the public's interest in a safe and sound banking
system.
Hostile Takeovers. Through past decisions,
the Board has indicated its intent to remain
neutral on the issue of friendly or unfriendly
acquisitions of domestic banking organizations.
Its principal interest in all acquisitions continues
to be that the resulting organization be financially
sound and have a strong capital position. The
Federal Reserve will not, however, allow an
institution to weaken its own condition significantly, either in an attempt to consummate an
acquisition or to prevent one.
Interbank Payments System. An important
and ongoing objective of the Federal Reserve has
been the implementation of policies both to reduce Federal Reserve risk in providing payments
services and to induce private participants to be
more prudent in controlling their daylight credit
exposures, particularly on private large-dollar
payment systems. The largest of these, Clearing
House Interbank Payments System (CHIPS), has
agreed to adopt rules making settlement of their
system more certain through both collateral and
loss-sharing devices. In addition, the Board has
adopted guidelines to reduce credit exposures on
other domestic and foreign clearance and payments systems.
Last spring, the Board also proposed additional measures to encourage depository institutions to control their credit exposure by expanding the scope of its payments risk
reduction program. Among other features, the
proposals will impose explicit prices on Federal
Reserve daylight credits and expand the use of
collateral as a risk control technique for book
entry clearance of U.S. government securities.
When fully implemented, these changes, together with private sector initiatives, should
reduce the overall level of U.S. payments system risk, shift the mix of domestic risks toward
the private sector, and more accurately assign
the risk to the private sector users of payment
services.
810
Federal Reserve Bulletin • December 1989
CONCLUSION
These past few years have been difficult times for
the banking industry, and significant problems
remain. However, the performance of most institutions during 1988 and for the first part of this
year suggests that progress has been made. The
Statement by Manuel H. Johnson, Vice Chairman, Board of Governors of the Federal Reserve
System, before the Subcommittee on International Development, Finance, Trade and Monetary Policy of the Committee on Banking, Finance and Urban Affairs, U.S. House of
Representatives, October 31, 1989.
I appreciate the opportunity to appear before this
subcommittee to comment on the Treasury Department's report on U.S. international economic and exchange rate policy.
As indicated in the report, there has been
considerable change in the U.S. trade and current account balances over the past couple of
years. The current account deficit (excluding
capital gains or losses reported by direct investors), which peaked at $160 billion in 1987, had
declined to $106 billion at a seasonally adjusted
annual rate by the first half of this year. As a
percentage of GNP the decline has been from V/i
percent to 2.1 percent over this same period.
The decline in our merchandise trade deficit
has been of about the same magnitude. The
volume of U.S. exports has been increasing at an
average annual rate of about 20 percent for
nearly three years, while the rate of growth of the
volume of our non-oil imports has slowed substantially.
The counterpart to the reduction in U.S. external deficits is the reduction in external surpluses in a number of countries abroad, notably
Japan, Taiwan, and Korea; a massive movement
into current account deficit in the United Kingdom; and some further increase in deficits of
some other European countries. Japan's surplus
declined from $87 billion (3.6 percent of GNP) in
1987 to $67 billion (2.3 percent of GNP) at a
seasonally adjusted annual rate in the first half of
1989. Taiwan's current account surplus declined
number of failed institutions seems poised to
decline; the capital ratios for most banking organizations have strengthened; and the most severe
problem institutions have now been addressed.
We must see further gains, though, before we can
say that the problems that have beleaguered the
industry are behind us.
•
from $18 billion in 1987 to a $10 billion rate in the
first half of this year. Korea's surplus likewise
declined from $14 billion in 1988 to about a $4
billion annual rate this year. And the U.K. current account deficit moved from $5 billion in 1987
to a deficit rate of $32 billion (3.8 percent of
GNP) in the first half of 1989.
On the other hand, there was no reduction in
Germany's surplus, which actually rose from $46
billion in 1987 to a $59 billion annual rate (5
percent of GNP) in the first half of this year,
accounted for by an increase in Germany's surpluses with its European Community (EC) partners.
The dramatic change in U.S. external balances
in the past two years was the result of the earlier
decline in the dollar against major foreign currencies and against the Taiwan dollar and the Korean won, increases in productivity and cost
competitiveness by U.S. producers, the slowing
of the rate of growth in U.S. domestic demand,
and a sharp increase in the rate of growth of
domestic demand abroad. While the adjustment
process has continued, there are signs suggesting
it has begun to slow. This reflects, in part, the
necessary actions taken by foreign industrial
countries to reduce the growth of domestic demand to contain inflationary pressures and the
continued relative attractiveness of assets denominated in U.S. dollars, which has bid up
dollar exchange rates.
Since our current account deficits are significantly lower than they were in 1985-87, the
sustained financing of such deficits is more likely
now than was the case earlier. In thinking about
options to improve our external accounts further,
it must be remembered that a significant portion
of our current account deficit reflects a worldwide saving-investment imbalance. Accordingly,
any strategy designed to reduce the trade deficit
Statements to Congress
should focus on policies that address this fundamental structural issue. Removing the many distortions that adversely affect U.S. savings must
be high on the policy agenda. Recent suggestions
by Treasury Secretary Brady to increase U.S.
private savings are constructive. Reducing government deficit spending must also be a high
priority to free up more overall domestic savings
and help lower relative real interest rates.
In present circumstances, with the U.S. economy pressing on capacity constraints and monetary policy focusing on containing inflationary
pressures, there is little room for substantial
further reduction in U.S. external deficits absent
a significant reduction of the saving-investment
imbalance. In the meantime our efforts should
concentrate on maintaining and improving the
environment for the free flow of capital and on
resisting protectionist nonsolutions.
The recognition that balanced and mutually
consistent economic policies among major coun-
811
tries are essential for a healthy and stable world
economy underlies the dialogue not just with
other G-7 countries but also with the newly
industrializing countries. We are pleased to see
that considerable progress has been made in
Taiwan and Korea over the past year in terms of
allowing market forces to be reflected in the
operation of their exchange markets.
Having said all this with regard to external
adjustment, it is important to emphasize that the
G-7 process of coordination of international economic policy properly is not concerned primarily
with exchange rates or external adjustment per
se. Rather, the aim is to achieve and to sustain
the maximum long-run growth for the world
economy consistent with low inflation. Current
account imbalances and exchange rates become
matters of policy concern when they threaten to
lead to financial market and other disturbances
that could thwart the attainment of the fundamental goal of sustainable growth with low inflation. •
Vice Chairman Johnson presented identical testimony before the Subcommittee on International
Finance and Monetary Policy of the Committee on Banking, Housing, and Urban Affairs, U.S.
Senate, November 16, 1989.
812
Record of Policy Actions
of the Federal Open Market Committee
MEETING
HELD ON AUGUST
1. Domestic
Policy
22,1989
Directive
The information reviewed at this meeting suggested that economic activity had continued to
expand at a moderate pace in recent months. Job
growth had remained sizable; and final demands,
most notably in the consumer sector, appeared to
be better maintained than had been indicated
earlier. At the same time, price inflation had
slowed, in large part reflecting a retracing of
price increases in the food and energy sectors
that had boosted inflation rates earlier this year;
wage trends gave no signs of upward pressures.
Total nonfarm payroll employment rose appreciably further in July after a large advance in
June. Most of the July increase took place at
service establishments and in the construction
industry where hiring had slowed during the first
half of the year. Employment was little changed
in manufacturing after three months of declines;
much of the recent weakness had reflected layoffs in the automobile and electrical equipment
industries. The civilian unemployment rate, at
5.2 percent, remained close to its average level in
earlier months of the year.
Industrial production edged higher in July,
offsetting the decline of the two previous months
and continuing the general pattern of slow
growth since the beginning of the year. Output of
capital equipment posted another strong gain in
July. Production of motor vehicles and parts
declined substantially, but output of other consumer goods continued to rise at a moderate
pace. Production of materials rebounded after
declining on balance over the first half of the
year. Total industrial capacity utilization held
steady in July at a relatively high level. In
manufacturing, despite a pickup in primary pro-
cessing industries, operating rates edged lower
and were down appreciably since January.
Retail sales rose considerably in July, and
revisions for earlier months suggested that consumer spending in the second quarter had not
been as weak as previously estimated. Purchases
of nondurable goods advanced appreciably further in July from the upward revised levels of
recent months. With a new round of manufacturers' incentives boosting sales of motor vehicles,
spending on durable goods also increased. Housing starts rose slightly further in July following a
large gain in June. The upturn in starts occurred
in the wake of a bounceback in sales of both new
and existing homes that was associated with the
sizable decline in mortgage rates since April.
Recent indicators of business capital spending
suggested some slowing of growth from the substantial pace of earlier months in the year. In
June, shipments of nondefense capital goods
increased modestly as a brisk rise in outlays for
aircraft and computers outweighed a sharp decline in spending for other categories of producers' durable equipment. Nonresidential construction activity, led by stepped-up outlays for
industrial structures, advanced strongly for a
second consecutive month. Inventory investment in manufacturing and trade slowed in June
to a pace well below the average rate of increase
observed earlier in the year. In the manufacturing sector, inventories of most types of finished goods rose only moderately, while stocks
of materials declined further. Inventories of
work-in-process in the aircraft industry continued to grow, as the industry expanded production to keep pace with mounting orders. At the
retail level, dealer stocks of automobiles rose a
bit further. Inventories at other retail establishments also increased, but imbalances with sales
appeared to be limited.
In June, the nominal U.S. merchandise trade
813
deficit narrowed considerably, and for the second quarter as a whole it was about unchanged
from a substantially reduced average value in the
first quarter. Exports rebounded in June as increases in both capital and consumer goods outweighed a further decline in sales of agricultural
goods. Imports declined appreciably, largely because of a drop in the value of oil imports. In the
major foreign industrial countries, economic
growth slowed significantly in the second quarter, following exceptionally rapid expansion in
the first quarter.
Partly reflecting further sharp declines in consumer energy prices, producer prices of finished
goods fell in July for a second consecutive
month. Prices of finished consumer goods other
than food and energy also declined, while prices
of capital goods held steady. Apart from food and
energy, prices of materials had fallen somewhat
on balance at the intermediate level in recent
months and had come down markedly at the
crude stage. Consumer prices rose modestly in
June after increasing sharply in earlier months of
the year. Lower prices were registered for gasoline, fuel oil, and electricity; and consumer food
prices rose more slowly. Prices of consumer
services continued to advance in June at about
the rate observed over the past year and a half.
Average hourly earnings jumped in July after
showing little change in the previous two
months, and on balance the data for recent
months suggested no change in prevailing wage
trends.
At its meeting on July 5-6, the Committee
adopted a directive that called for a slight reduction in the existing degree of pressure on reserve
positions. The Committee agreed that somewhat
greater or somewhat lesser reserve restraint
would be acceptable in the intermeeting period
depending on indications of inflationary pressures, the strength of the business expansion, the
behavior of the monetary aggregates, and developments in foreign exchange and domestic financial markets. This policy stance was expected to
be consistent with growth of M2 and M3 over the
period from June through September at annual
rates of about 7 percent.
Immediately after the Committee meeting, the
Manager for Domestic Operations conducted operations to achieve the slight easing in reserve
conditions that the Committee had directed. At
the same time, to reflect strength in seasonal
borrowing, a small technical upward revision
was made to the assumed level of adjustment
plus seasonal borrowing. Late in July, as incoming data continued to portray a softer economy
and some lessening in inflationary pressures, the
Manager sought a further slight reduction in the
degree of pressure on reserve positions. Adjustment plus seasonal borrowing averaged nearly
$600 million over the three reserve maintenance
periods completed since the July 5-6 meeting,
while the federal funds rate moved down a little
more than VI percentage point to around 9 percent.
Other market interest rates fluctuated over a
wide range during the intermeeting interval.
Early in the period, rates tended to decline in
response to weaker-than-anticipated economic
data and related market expectations of further
monetary easing. Subsequently, rates rebounded
after the release of other economic indicators
that were viewed as suggesting less weakness in
the expansion and therefore a reduced likelihood
of further easing. As a result, most rates ended
the period with only modest net changes. Treasury bill rates were up about VA percentage point
on balance, while private short-term interest
rates declined by roughly 30 basis points, and
major banks lowered their prime rate VI percentage point to IOI/2 percent. In long-term debt
markets, yields were about unchanged to slightly
higher over the period. Most major stock price
indexes reached record highs during the intermeeting period before giving up part of their
gains.
In foreign exchange markets, the tradeweighted value of the dollar in terms of the other
G-10 currencies moved lower on balance through
July as interest rate differentials favorable to the
dollar were narrowing. In August, the dollar
resumed its upward climb, spurred by continued
political uncertainties abroad and a reassessment
by market participants of the outlook for U.S.
interest rates in light of a spate of new economic
data. Over the intermeeting period as a whole,
the dollar rose but at the end of the period
remained below the highs of last June.
Growth of M2 and M3 accelerated in July and
appeared to have continued at a fairly strong
814
Federal Reserve Bulletin • December 1989
pace into August, evidently reflecting both the
rebuilding of balances drawn down to meet April
tax liabilities and the substantial narrowing of
opportunity costs associated with holding liquid
deposits. Through July, expansion of M2 had
been around the lower end of the Committee's
annual range, and M3 remained somewhat above
the lower bound of its range.
The staff projection prepared for this meeting
suggested that the nonfarm economy was likely
to grow over the remainder of 1989 at about the
pace estimated for the first half of the year but
that some slowing of the expansion would occur
in 1990. The projection assumed that fiscal policy
would move noticeably toward restraint over the
projection period and that the contribution of
foreign trade to growth would be very limited,
owing in part to the earlier appreciation of the
dollar. Consumer demand was likely to be somewhat stronger over the next several quarters,
bolstered by continued job growth and reflecting
the ongoing effects on consumer sentiment of the
advance in stock prices this year and the declines
in interest rates since spring; in subsequent quarters, gradually mounting slack in labor markets
would exert a restraining effect on consumer
spending. The lower levels of interest rates also
were expected to produce some pickup in residential construction activity. Growth in business
capital spending, although moderating somewhat
from the pace in the first half of the year, was
projected to remain a source of strength. The
recent weakening in food and energy prices
pointed to a slower rise in consumer prices for
the next few quarters; however, with margins of
unutilized labor and other production resources
still low, the underlying trend in inflation was not
expected to improve through 1990.
In the Committee's discussion of the economic
situation and outlook, members observed that
indicators of business activity looked somewhat
stronger on balance than at the time of the July
meeting and that, despite some earlier concerns
about a progressive slowdown, the economy
appeared to be continuing to grow at a moderate
pace. Several commented that further expansion
at a rate close to that experienced recently was a
reasonable expectation for the next several quarters and would constitute a desirable economic
performance under prevailing circumstances. A
number of members noted that there were no
major imbalances in the economy of the sort that
often lead to a recession or to a surge in business
activity. However, because of the uncertainties
that were involved, the members differed to
some extent in their views regarding the risks of
some deviation in the expansion from its present
course; some felt that those risks were about
evenly balanced or were tilted toward some
strengthening in the months ahead; several others saw some weakening as the most likely
prospect, or at least the one that had to be
guarded against because of the broad economic
and social consequences of a downturn in economic activity. No member anticipated a sharp
turn in the economy in either direction. The
members also differed to some degree in their
views on the outlook for inflation. Recent developments provided a basis for some optimism, but
progress in reducing the underlying rate of inflation would depend importantly on the strength of
the business expansion and also on the behavior
of the dollar in foreign exchange markets.
In their discussion of specific developments
bearing on the economic outlook, members
noted that consumer spending appeared to have
strengthened somewhat in recent months, and
most members expected such spending to hold
up, or possibly to increase somewhat further, in
the months ahead. Others placed more weight on
the possibility that further gains, if any, might be
relatively limited, in part because they expected
automotive sales to be curtailed by higher prices
and lower rebates when the new model year
began. In the housing sector, current conditions
were quite uneven across the country, with an
increasing number of areas showing weakness,
and the outlook was clouded to an extent by the
possible effects of the disposition of properties in
conjunction with the resolution of insolvent savings and loan associations. However, recent declines in mortgage rates would help to sustain the
overall demand for houses. Should housing markets weaken, for whatever reason, the effect
could be to depress not only construction activity
but consumption spending as well. In the business investment sector, current demand conditions appeared consistent with further growth in
overall investment spending, though probably at
a much reduced pace from that experienced in
Record of Policy Actions of the Federal Open Market Committee
the first half of the year, especially given the
likely weakness in construction activity in many
areas because of earlier overbuilding. With regard to the outlook for foreign trade, members
emphasized that the strength of the dollar could
have negative implications for the nation's trade
prospects, and several expressed the view that
further improvement in the trade balance, if any,
was likely to be limited over the next several
quarters; on the positive side, reports suggested
that export markets remained relatively robust
for many products.
In their comments on regional business conditions and business attitudes, members reported a somewhat mixed picture, depending on
the industries that were involved. On balance,
most parts of the country continued to experience a high level of business activity or at least
modest further improvement from relatively
depressed conditions. However, signs of somewhat slower growth had become more widespread and there were indications that business
activity might have leveled out or turned down
in some areas. Many business contacts appeared to be more bearish on the outlook than
they had been earlier. In general, these contacts
expected the overall economy to settle into a
pattern of relatively slow growth. Few expressed concern about a possible decline in
business activity.
In their comments on the outlook for inflation, members noted that the behavior of key
price and wage measures in recent months was
an encouraging development. From the perspective of cost pressures, the prices of many
materials had increased less rapidly or had
actually declined in recent months, and increases in labor compensation had been relatively moderate despite still tight labor markets
in many parts of the country. While a number of
members observed that little or no progress had
been made thus far in reducing the underlying
rate of inflation, most remained confident that
the currently restrained growth in overall economic activity had established the necessary
conditions for lowering inflation and achieving
the Committee's price stability objective over
time. Some anticipated that favorable inflation
results might well emerge sooner rather than
later. For some others a troubling question
815
remained as to whether significant progress in
reducing inflation was possible with the current
degree of pressure on production resources. In
this connection, a few expressed concern that
some intensification of labor-cost pressures
could not be ruled out under current economic
conditions, and they noted in particular that
there were indications of growing labor militancy in some industries and parts of the country. The strength of the dollar appeared to have
damped inflation, but that effect would be reversed if the dollar were to depreciate substantially in foreign exchange markets.
Turning to the conduct of monetary policy,
all of the members supported a proposal to
maintain unchanged conditions of reserve availability at least initially during the intermeeting
period ahead. The easing steps implemented
since early June had been appropriate in the
context of earlier indications of some slowing in
the business expansion and a prospective lessening of inflation pressures. Partly as a consequence of the easing in policy, growth of the
monetary aggregates had picked up, and both
M2 and M3 were within the Committee's ranges
for the year. For the period ahead, a steady
policy course was desirable in light of the latest
evidence suggesting that price pressures were
not intensifying; in addition, the expansion appeared to have stabilized at a moderate and
provisionally acceptable pace, and considerable
uncertainty existed with regard to the timing
and direction o f future d e v i a t i o n s f r o m
the
expansion's current momentum. Some members commented on indications that financial
markets anticipated some further easing of
monetary policy in the months ahead, if not
immediately. If such easing failed to materialize, the result could be some upward adjustments in interest rates that could have an adverse impact on interest-sensitive sectors of the
economy such as housing and that could place
undesirable upward pressure on the value of the
dollar in foreign exchange markets. Despite
such concerns, the members agreed that for
now an unchanged policy offered the best prospect of fostering the financial market conditions
and the monetary growth that would accommodate satisfactory economic performance. They
recognized that economic developments would
816
Federal Reserve Bulletin • December 1989
have to be monitored closely to assess whether
any change in policy might be needed.
In their consideration of an appropriate policy
course, the members took account of a staff
analysis indicating that the expansion of M2 and
M3 was likely to slow substantially from the
recent pace but to remain well within the Committee's ranges for the year. The analysis took
note of the decline in market interest rates over
the past several months and assumed that they
would stabilize at current levels and that the
expansion of nominal income would remain near
its recent pace. The outlook for money growth
was subject to unusual uncertainty, however,
stemming from the range of possible responses
by thrift depository institutions to the recently
enacted legislation and associated government
strategy for resolving insolvent institutions. The
expansion of M3 would be slowed as savings and
loan associations reduced their funding needs by
selling assets or curbing the growth of assets; the
expansion of M2 might also be affected depending on the impact of these developments on
deposit offering rates and related opportunity
costs of holding deposits. Any weakness in
money growth for these reasons, however,
would not be an indication of a slowing economy,
given the presumption that highly developed
secondary markets would maintain the availability of mortgage credit. Members commented that
despite its recent acceleration, monetary growth
remained damped when measured over a longer
period, suggesting a basically restrained monetary policy. While continued monetary expansion at the recent rapid pace clearly would be
undesirable in a period when underlying inflation
was unacceptably high, a renewed shortfall in
relation to the Committee's ranges also should be
averted.
With regard to possible adjustments in the
degree of reserve pressure in the intermeeting
period, a majority of the members believed that
operations should be adjusted more readily
toward further easing than toward any firming,
and a few indicated that they viewed the incorporation of such an understanding as a key
element of an acceptable directive. While most
members anticipated that a steady policy
course might well prove to be appropriate for
the entire intermeeting period, any adjustment
called for by prospective developments was
more likely to be, in the majority view, in the
direction of some reduction in the degree of
reserve restraint and such an expectation
should be reflected in the directive. Most of the
other members indicated that they could accept
such a directive, but because they believed that
the risks to the economy were more evenly
balanced, they favored a directive that did not
include a presumption as to the likely direction
of any intermeeting adjustments. These members also noted that the current directive was
symmetric in form, and a bias in the new
directive toward ease might lead to a misreading of System policy in the context of an
unacceptably high rate of inflation.
At the conclusion of the Committee's discussion, all but one of the members indicated that
they preferred or could accept a directive that
called for maintaining the current degree of
pressure on reserve positions and that provided
for giving special weight to potential developments that might require some slight easing
during the intermeeting period. With regard to
the factors that were important in considering
any intermeeting changes in reserve conditions,
the Committee continued to give primary
weight to the inflation outlook. In that regard,
they emphasized that policy actions ought to be
consistent with furthering achievement of the
ultimate objective of price stability. Accordingly, slightly greater reserve restraint might be
acceptable during the intermeeting period,
while some slight lessening of reserve pressure
would be acceptable, depending on progress
toward price stability, the strength of the business expansion, the behavior of the monetary
aggregates, and developments in foreign exchange and domestic financial markets. The
reserve conditions contemplated by the Committee were expected to be consistent with
growth of M2 and M3 at annual rates of around
9 percent and around 7 percent respectively
over the three-month period from June to September; in the case of M2, such growth was
somewhat faster than that anticipated at the
time of the July meeting. The intermeeting
range for the federal funds rate, which provides
one mechanism for initiating consultation of the
Committee when its boundaries are persistently
Record of Policy Actions of the Federal Open Market Committee
exceeded, was left unchanged at 7 to 11 percent.
At the conclusion of the meeting, the following
domestic policy directive was issued to the Federal Reserve Bank of New York:
The information reviewed at this meeting suggests
that economic activity has continued to expand at a
moderate pace in recent months. In July, total nonfarm payroll employment rose appreciably further
after a large advance in June, and the civilian unemployment rate, at 5.2 percent, remained close to its
average level in earlier months of the year. Industrial
production edged higher in July, continuing the
slower growth observed since the beginning of the
year. Retail sales have grown at a moderate pace in
recent months. Housing starts rose slightly further in
July following a large gain in June. Recent indicators
of business capital spending suggest slower growth
after the substantial increase in the first half of the
year. The nominal U.S. merchandise trade deficit
narrowed considerably in June and for the second
quarter as a whole was about unchanged from a
substantially reduced average value in the first quarter. Partly reflecting reductions in energy prices,
increases in consumer prices moderated in June and
July. The latest wage data suggest no change in
prevailing trends.
Interest rates show mixed changes on balance since
the Committee meeting on July 5-6. In foreign exchange markets, the trade-weighted value of the dollar
in terms of the other G-10 currencies has risen on
balance over the intermeeting period.
M2 and M3 grew markedly in July, lifting expansion
of M2 thus far this year to around the lower end of the
Committee's annual range, and keeping M3 somewhat
above the lower bound of the Committee's range.
The Federal Open Market Committee seeks monetary and financial conditions that will foster price
stability, promote growth in output on a sustainable
basis, and contribute to an improved pattern of international transactions. In furtherance of these objectives, the Committee at its meeting in July reaffirmed
the ranges it had established in February for growth of
M2 and M3 of 3 to 7 percent and V/i to IVi percent,
respectively, measured from the fourth quarter of 1988
to the fourth quarter of 1989. The monitoring range for
growth of total domestic nonfinancial debt also was
maintained at 6V2 to IOV2 percent for the year. For
1990, on a tentative basis, the Committee agreed in
July to use the same ranges as in 1989 for growth in
each of the monetary aggregates and debt, measured
from the fourth quarter of 1989 to the fourth quarter of
1990. The behavior of the monetary aggregates will
continue to be evaluated in the light of movements in
their velocities, developments in the economy and
financial markets, and progress toward price level
stability.
817
In the implementation of policy for the immediate
future, the Committee seeks to maintain the existing
degree of pressure on reserve positions. Taking account of progress toward price stability, the strength
of the business expansion, the behavior of the monetary aggregates, and developments in foreign exchange
and domestic financial markets, slightly greater reserve restraint might or slightly lesser reserve restraint
would be acceptable in the intermeeting period. The
contemplated reserve conditions are expected to be
consistent with growth of M2 and M3 over the period
from June through September at annual rates of about
9 and 7 percent, respectively. The Chairman may call
for Committee consultation if it appears to the Manager for Domestic Operations that reserve conditions
during the period before the next meeting are likely to
be associated with a federal funds rate persistently
outside a range of 7 to 11 percent.
Votes for this action: Messrs. Greenspan, Corrigan, Angell, Johnson, Keehn, Kelley, LaWare,
Melzer, Ms. Seger, and Mr. Syron. Vote against
this action: Mr. Guffey.
Mr. Guffey supported an unchanged policy for
the period ahead, but he could not accept a
directive that would allow possible intermeeting
adjustments to be made more readily in an easing
than in a firming direction as new information
became available. In his view, the risks to the
expansion were fairly evenly balanced and did
not warrant an asymmetric directive biased
toward ease, especially in light of undesirably
high rates of inflation both current and prospective. He also noted his concern that a directive
tilted toward ease could give a misleading indication of the weight that the Committee continued to place on achieving its long-run price
stability objective.
2. Authorization
for
Foreign Currency
Operations
As part of a proposed multilateral bridge financing facility for Mexico, the Committee approved a special reciprocal currency arrangement of $125 million with the Bank of Mexico.
The new facility supplements the regular $700
million arrangement with the Bank of Mexico set
out in paragraph 2 of the Authorization for Foreign Currency Operations. The Committee delegated to Chairman Greenspan the authority to
approve a drawing on both of these arrangements
818 Federal Reserve Bulletin • December 1989
by the Bank of Mexico, subject to his determination that the appropriate terms and conditions
had been met.
Under the terms of the multilateral facility, the
Bank of Mexico may draw up to $2 billion in
short-term financing in support of the program of
the government of Mexico for economic reform
and economic growth. Participating with the
Federal Reserve in making funds available are
the U.S. Treasury through its Exchange Stabilization Fund, central banks from the other Group
of Ten countries acting under the aegis of the
Bank for International Settlements, and the Bank
of Spain. The final maturity date of the facility is
February 15, 1990.
Votes for this action: Messrs. Greenspan, Corrigan, Angell, Guffey, Johnson, Keehn, Kelley,
LaWare, Melzer, Ms. Seger, and Mr. Syron. Votes
against this action: None.
On September 14, 1989, the multilateral bridge
financing facility became effective, and on September 22, 1989, Chairman Greenspan, acting
under the delegation of authority from the Committee, gave final clearance for drawings by the
Bank of Mexico on the reciprocal currency arrangements.
3. Agreement
to
" Warehouse" Foreign
Currencies
On September 19, 1989, the Committee agreed to
a request by the Treasury for an increase from
$5.0 billion to $10.0 billion in the amount of
eligible foreign currencies that the System would
be prepared to "warehouse" for the Treasury
and the Exchange Stabilization Fund (ESF). The
warehousing facility involves spot purchases of
foreign currencies from the Treasury or the ESF
and simultaneous forward sales of the same
currencies at the same exchange rate to the
Treasury or the ESF. Such transactions are
authorized under Paragraphs l.A and l.B of the
Committee's "Authorization for Foreign Currency Operations," and the maximum size of the
facility is determined periodically by the Committee; the most recent change involved an increase from $13A billion to $5.0 billion in December 1978. The proposed increase was intended to
enable the ESF to finance its continued participation in foreign currency operations.
Votes for this action: Messrs. Greenspan, Corrigan, Angell, Guffey, Keehn, Kelley, LaWare,
Melzer, Ms. Seger, and Mr. Syron. Votes against
this action: None. Abstention: Mr. Johnson.
Effective September 25, 1989, the Committee
approved an increase from $18 billion to $20
billion in the limit on holdings of foreign currencies specified in paragraph ID of the Committee's Authorization for Foreign Currency Operations. That limit applies to the overall open
position in all foreign currencies held in the
System Open Market Account; at the time of this
action, System holdings had reached nearly $18
billion. The higher limit was approved in light of
the potential for further System acquisitions of
foreign currencies in coordination with similar
transactions by the U.S. Treasury. In approving
the increase, the Committee took account of the
views expressed by the Finance Ministers and
Central Bank Governors of the Group of Seven
countries at their meeting on September 23, 1989.
These officials considered the rise of the dollar in
recent months to be inconsistent with longer-run
economic fundamentals, and they agreed that a
rise of the dollar above current levels or an
excessive decline could adversely affect prospects for the world economy. In this context,
they agreed to cooperate closely in exchange
markets.
Votes for this action: Messrs. Greenspan, Corrigan, Guffey, Keehn, Kelley, LaWare, Melzer,
Ms. Seger, and Mr. Syron. Votes against this
action: Messrs. Angell and Johnson.
In dissenting from this action, Messrs. Angell
and Johnson indicated that they could not consent to an increase in the authorized limits for
holding foreign currencies when such authorization facilitates exchange rate intervention to
drive the dollar lower as compared with intervention to avoid disorderly conditions by stabilizing
or limiting increases in the dollar exchange rate.
Intervention of the former type confuses market
participants concerning the policy commitment
toward price level stability and can contribute to
disorderly markets. It can increase inflation fears
Record of Policy Actions of the Federal Open Market Committee
as can be seen in decreases in long-term bond
prices and in increases in the price of inflationsensitive commodities. Interest rate risk premiums also may increase. Finally, such interven-
819
tion can work to limit flexibility in the exercise of
fundamental monetary policy options that depend on evidence of improvement in the future
inflation environment.
820
Announcements
MEETING OF
CONSUMER ADVISORY
COUNCIL
The Federal Reserve Board announced that its
Consumer Advisory Council held a meeting on
October 26.
The Council's function is to advise the Board
on the exercise of the Board's responsibilities
under the Consumer Credit Protection Act and
on other matters on which the Board seeks its
advice.
interim between the Board's quarterly publications and will be immediately marginable. The
next publication of the Board's list is scheduled
for January 1990.
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.
PROPOSED
REVISED LIST OF MARGIN ABLE
OTC STOCKS NOW
AVAILABLE
The Federal Reserve Board published on October 27, 1989, a revised list of over-the-counter
(OTC) stocks that are subject to its margin regulations, effective November 13, 1989.
This revised List of Marginable OTC Stocks
supersedes the list that was effective on August
14,1989. The changes that have been made to the
list, which now includes 2,893 OTC stocks, are
as follows:
• Fifty-three stocks have been included for the
first time, forty-five under National Market System (NMS) designation.
• Fifty-five stocks previously on the list have
been removed for substantially failing to meet the
requirements for continued listing.
• Forty-four stocks have been removed for
reasons such as listing on a national securities
exchange or involvement in an acquisition.
This list is published by the Board for the
information of lenders and the general public. It
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
ACTIONS
The Federal Reserve Board issued for public
comment on October 3, 1989, proposed amendments to Regulation T (Credit by Brokers and
Dealers) to accommodate the settlement and
clearance of transactions in foreign securities
and to permit marginability at broker-dealers
for foreign securities. Comments must be submitted to the Board by November 30, 1989.
The Federal Reserve Board issued for public
comment on October 4, 1989, proposed changes
to the Fedwire funds transfer and book-entry
securities transfer operating schedule. Comments must be submitted to the Board by December 8, 1989.
The Federal Reserve Board on October 5,
1989, proposed revisions to its Regulation C
(Home Mortgage Disclosure) designed to carry
out amendments to the Home Mortgage Disclosure Act that were approved by the Congress
earlier this year. Comment is requested by November 3, 1989.
PUBLICATION OF ANNUAL STATISTICAL
DIGEST, 1988
The Annual Statistical Digest, 1988 is now
available. This one-year Digest is designed as a
compact source of economic, and especially
financial, data. The Digest provides a single
821
source of historical continuations of the statistics carried regularly in the Federal Reserve
Bulletin.
This issue of the Digest covers only 1988
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 Bulletin.
Copies of the Digest at $25.00 each are available from Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551.
CHART BOOK TO BE
DISCONTINUED
Publication of the Historical Chart Book will be
discontinued after the 1989 edition. The final
edition is available from Publications Services,
Board of Governors of the Federal Reserve System, Washington, D.C. 20551. The price is $1.25
a copy in the United States, its possessions,
Canada, and Mexico, and $1.50 elsewhere. The
price for ten or more copies sent to one address
is $1.00 each.
CHANGE IN BOARD
STAFF
The Board of Governors announced that Susan J.
Lepper, Assistant Director in the Division of
Research and Statistics, resigned, effective November 9, 1989.
823
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 which was
effective August 14, 1989, and will serve to give notice
to the public about the changed status of certain
stocks.
Effective November 13, 1989, 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 of Marginable OTC Stocks:
Deletions from the List of Marginable OTC
Stocks
Stocks Removed for Failing Continued Listing
Requirements
Advanced Computer Techniques Corporation: $.10
par common
American Capacity Group, Inc.: $1.00 par common
Andover Controls Corporation: $.01 par common
Bayly Corporation: $1.00 par common
Bishop, Incorporated: $.10 par common
Brown Transport Company, Inc.: $.10 par common
Challenger International, Ltd. $.01 par common
Colorocs Corporation: Class C, Warrants (expire
08-18-89)
Comstock Group, Inc.: $.25 par common
Crazy Eddie, Inc.: $.01 par common
Cronus Industries, Inc.: Warrants (expire 02-01-90)
Cytrx Corporation: $.001 par common Warrants (expire 11-09-91)
Datavision, Inc.: $.01 par common
Diversified Foods, Inc.: $.003 par common
Domain Technology, Incorporated: $.01 par common
Edgcomb Corporation: $1.50 par common
El Polio Asado, Inc.: N o par common
Equity Bank, The: N o par common
Falconbridge Limited: N o par common
First Capitol Financial Corp.: $.01 par common
Forum Re Group (Bermuda) Ltd: $.40 par capital
George Washington Corporation: $1.00 par common
GMI Group, Inc.: $.01 par common
Great American Corporation: $2.50 par common
Hi-Port Industries, Inc.: $.05 par common
Higby's, J., Inc.: $.01 par common
Home Savings Association of Penna.: $1.00 par common
Interferon Sciences, Inc.: $.01 par common
International Mobile Machines Corporation: Warrants
(expire 08-05-89)
Landmark American Corporation: $.01 par common
LDDS Communications, Inc.: Warrants (expire
10-13-89)
Machine Technology, Inc.: N o par common
Maione Companies, Inc.: N o par common
Max & Erma's Restaurants, Inc.: Warrants (expire
10-07-89)
Meridian Bancorp, Inc.: $25.00 par cumulative convertible preferred
Metropolitan Financial Savings & Loan Association
(Texas): $1.00 par common
Mischer Corporation, The: $1.00 par common
National Industrial Bancorp, Inc.: $.01 par common
Ocilla Industries, Inc.: $.01 par common
824 Federal Reserve Bulletin • December 1989
Pioneer Financial Corp.: Series A, $1.00 par cumulative convertible preferred
Prime Capital Corporation: $.05 par common
Imperial Holly Corporation: N o par common
Integrated Genetics Inc.: $.01 par common
International, Inc.: $.01 par common
QMAX Technology Group, Inc.: $.01 par common
Judy's Inc.: $.50 par common
Rabbit Software Corporation: $.01 par common
Rodime PLC: American Depositary Shares for ordinary shares (Par value 5 pence)
Keane, Inc.: $.10 par common
Sooner Federal Savings and Loan Association: $.01
par common
Stan West Mining Corporation: $.01 par common
Tele-Optics, Inc.: Warrants (expire 08-11-89)
Telecast, Inc.: $.01 par common
Texcel International Inc.: Warrants (expire 12-15-89)
Twistee Treat Corporation: $.001 par common
United Bankers, Inc.: N o par common
Ward White Group, PLC: American Depositary Receipts
Wholesale Club, Inc., The: N o par convertible preferred
Writer Corporation, The: $.10 par common
Stocks Removed for Listing on a National
Securities Exchange or Being Involved in an
Acquisition
A.M.E., Inc.: No par common
Actmedia, Inc.: $.01 par common
Aim Telephones, Inc.: $.01 par common
Beecham Group, PLC: American Depositary Receipts
Bradley Real Estate Trust: $1.00 par shares of beneficial interest
Cambridge Analytical Associates, Inc.: $.01 par common
CB&T Bancshares, Inc.: $1.00 par common
Centel Cable Television Company: Class A, $.01 par
common
Chili's Inc.: $.10 par common
Fisher Scientific Group, Inc.: $.01 par common
Fountain Powerboat Industries, Inc.: $.01 par common
Harken Energy Corporation: $1.00 par common
Harlyn Products, Inc.: $.10 par common
Healthsouth Rehabilitation Corporation: $.01 par common
Hemotec, Inc.: Voting, $.01 par common
Local Federal Savings & Loan Association (Oklahoma): $.01 par common
LSI Logic Corporation: $.01 par common
Micro Mask, Inc.: $1.00 par common
Minnetonka Corp.: $1.00 par common
Monitor Technologies, Inc. CUC: $.01 par common
Nichols-Homeshield, Inc.: $.01 par common
Nodaway Valley Co.: $2.00 par common
Ogilvy Group, Inc.: $1.00 par common
Old Spaghetti Warehouse, Inc.: $.01 par common
Pancretec, Inc.: N o par common
Peoples Bancorporation (North Carolina): N o par
common
Phonemate, Inc.: $.10 par common
Preferred Risk Life Insurance Company: $1.00 par
common
Rockingham Bancorp (New Hampshire): $1.00 par
common
Satellite Music Network, Inc.: $.10 par common
Scherer, R.P. Corporation: $.33-'/3 par common
Southlife Holding Company: $.05 par common
Sterner Lighting Systems Incorporated: $.10 par common
Super Rite Foods, Inc.: $.05 par common
Tyland Corporation: N o par common
Ultra Bancorporation: $5.00 par common
View-Master Ideal Group, Inc.: $.01 par common
Wheelabrator Group Inc., The: $.01 par common
Wheelabrator Technologies, Inc.: $.01 par common
Additions to the List of Marginable OTC
Stocks
50-0ff Stores, Inc.: $.01 par common
Acclaim Entertainment, Inc.: $.02 par
Class B, Warrants (expire 01-30-90)
common
Legal Developments
825
Allstate Financial Corporation: No par common
Applebee's International, Inc.: $.01 par common
Archer Communications, Inc.: No par common
Novell, Inc.: 1-VA% convertible subordinated debentures
Nucorp, Inc.: Paired Warrants (expire 10-31-90)
BEI Electronics, Inc.: $.001 par common
Bizmart, Inc.: $.10 par common
Brite Voice Systems, Inc.: N o par common
Parlux Fragrances, Inc.: $.01 par common
Pioneer Financial Services, Inc.: N o par cumulative
convertible exchangeable preferred
Pioneer-Standard Electronics, Inc.: 9% subordinated
convertible debentures
Prime Bancshares, Inc.: $.01 par common
Calgene, Inc.: $.001 par convertible exchangeable
preferred
Cellcom Corp.: $.001 par common
Coca Mines, Inc.: Warrants (expire 05-15-90)
Cognex Corporation: $.002 par common
Crown Resources Corporation: $.05 par common
Digi International, Inc.: $.01 par common
Eagle Food Centers, Inc.: $.01 par common
EFI Electronics Corporation: $.0001 par common
Electronic Arts: N o par common
Employee Benefit Plans, Inc.: $.01 par common
Enclean, Inc.: $.01 par common
Excalibur Technologies Corporation: $.01 par common
First City Bancorp, Inc.: No par common
First Executive Corporation: Warrants (expire
10-09-92) Depository Preference Shares (representing one-hundreth of a share Series H preferred)
Genetics Institute, Inc.: $1.00 par convertible exchangeable preferred
Giddings & Lewis, Inc.: $.10 par common
GZA Geoenvironmental Technologies, Inc.: $.01 par
common
Heritage Bankcorp, Inc.: $.01 par common
Hotelecopy, Inc.: $.01 par common
Image Bank, Inc., The: $.01 par common
Inbancshares: N o par common
International Broadcast Systems, Inc.: Class A, $.10
par common
International Lease Finance Corporation: Warrants
(expire 1994)
Lechters, Inc.: N o par common
Marine Drilling Company: $.10 par common
New England Realty Associates Limited Partnership:
Depositary Receipts evidencing units of limited
partnership
New Image Industries, Inc.: $.001 par common
Newbridge Networks Corporation: N o par common
Rally's Inc.: $.10 par common
Security Federal Savings and Loan Association of
Cleveland: $.01 par common
Serv-Tech, Inc.: $.50 par common
Southeastern Savings Institutions Fund, Inc., The:
$.001 par common Surgical Laser Technologies,
Inc.: $.01 par common
Valley West Bancorp: $2.00 par common
Vanguard Real Estate Fund I, A Sales CommissionFree Income Properties Fund: Shares of beneficial
interest
Vencor, Incorporated: $.25 par common
Washington Mutual Savings Bank: $1.00 par preferred
stock
ORDERS ISSUED UNDER BANK
COMPANY ACT
HOLDING
Orders Issued Under Section 3 of the
Bank Holding Company Act
BankAmerica Corporation
San Francisco, California
Order Approving Acquisition
Company
of a Bank
Holding
BankAmerica Corporation, San Francisco, California
("BankAmerica"), a bank holding company within the
meaning of the Bank Holding Company Act ("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 all of the voting shares of
Nevada First Development Corporation, and thereby
indirectly to acquire Nevada First Bank and Silver
State Thrift & Loan Association, all of Reno, Nevada.
Nevada First Bank and Silver State Thrift & Loan
Association are both state-chartered institutions the
deposits of which are insured by the FDIC, and, as a
826
Federal Reserve Bulletin • December 1989
result, are both "banks" for purposes of the BHC Act.
12 U.S.C. § 1841(c).'
Notice of the application, affording an opportunity
for interested persons to submit comments, has been
duly published (54 Federal Register 24,261 (1989)).
The time for filing comments has expired, and the
Board has considered the application and all comments received in light of the factors set forth in
section 3(c) of the Act.
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 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." 2 Effective
December 31, 1988, the statute laws of Nevada permitted out-of-state bank holding companies, with the
approval of the Nevada Commissioner of Financial
Institutions, to acquire established Nevada banks and
bank holding companies. 3 The Nevada Commissioner
of Financial Institutions has approved BankAmerica's
proposal pursuant to the Nevada statute. In light of the
foregoing, the Board has determined that its approval
of the proposal is not prohibited by the Douglas
Amendment.
BankAmerica operates two banking subsidiaries in
California and Washington. BankAmerica is the third
largest commercial banking organization in the United
States and is the largest commercial banking organization in California, where it controls deposits of $51.1
billion, representing approximately 24.4 percent of the
total deposits in commercial banks in California.4
Nevada First Development Corporation is the sixth
largest commercial banking organization in Nevada,
1. Silver State Thrift & Loan Association ("Silver State") was
originally acquired by Nevada First Development Corporation as an
industrial loan company, pursuant to section 4(c)(8) of the BHC Act
and section 225.25(b)(2) of the Board's Regulation Y (12 C.F.R.
225.25(b)(2)). Nevada First Development Corporation, 70 FEDERAL
RESERVE BULLETIN 469 (1984). BankAmerica proposes to operate
Silver State as a full-service bank and has already obtained the
approval of the Nevada Administrator of Financial Institutions to
exercise all of the powers of commercial bank, including accepting
demand deposits, through Silver State. Moreover, BankAmerica also
anticipates that, after consummation, Silver State will conduct transactions with its affiliates that would cause Silver State to lose its
exemption as an industrial bank. 12 U.S.C. § 1841(c)(2)(H).
2. 12 U.S.C. § 1842(d). 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.
BankAmerica's home state is California.
3. Nev. Rev. Stat. Ann. § 666.335 (Michie 1986) (Expires by
limitation July 1, 1990). Nevada First Development Corporation,
Nevada First Bank and Silver State were in operation on July 1, 1985,
as required by the statute. Id.
4. All data are as of December 31, 1988.
controlling $182.9 million in deposits, representing 2.8
percent of the total deposits in commercial banks in
Nevada.
Nevada First Development Corporation's banking
affiliates operate solely in Nevada banking markets.
BankAmerica does not currently own or operate any
banking subsidiary in Nevada. 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 Nevada. Accordingly, the Board concludes that competitive factors are consistent with
approval.
In evaluating this application, the Board has carefully considered the financial resources of BankAmerica and the effect on those resources of the proposed
acquisition. The Board has previously stated that it
expects banking organizations contemplating expansion proposals to maintain strong capital levels substantially above the minimum levels specified in the
Board's Capital Adequacy Guidelines, without significant reliance on intangibles, particularly goodwill. 5
The Board carefully analyzes the effect of expansion
proposals on the preservation or achievement of
strong capital levels and has adopted a policy that
there should be no significant diminution of financial
strength below those levels for the purpose of effecting
major expansion. 6
As discussed in the companion case, 7 the Board
notes that BankAmerica has taken the appropriate
steps over the last few years to strengthen its capital
position, both through the issuance of new equity and
through the retention of earnings. BankAmerica's capital ratios are above the minimum requirements under
the Board's Capital Adequacy Guidelines. In addition,
BankAmerica would effect this transaction through
an exchange of shares, and the proposal will have a
de minimis effect on BankAmerica's capital position.
Moreover, this proposal would result in a small increase in BankAmerica's asset size in relative terms.
In light of these considerations, the Board concludes
that the financial resources of BankAmerica are consistent with approval of the proposal. Moreover, man-
5. The Bank of New York Company, Inc., 74 FEDERAL RESERVE
BULLETIN 257 (1988); Capital Adequacy Guidelines, 50 Federal Register 16,057 (April 24, 1985).
6. Thus, for example, the Board has generally approved proposals
involving a decline in capital only where the applicants have promptly
restored their capital to pre-acquisition levels following consummation of the proposals and have implemented programs of capital
improvement to raise capital significantly above minimum levels. See,
e.g., Citicorp, 72 FEDERAL RESERVE BULLETIN 726 (1986); Security
Pacific Corporation, 72 FEDERAL RESERVE BULLETIN 800 (1986).
7. BankAmerica Corporation (American Savings Financial Corporation,l, 75 FEDERAL RESERVE BULLETIN 827 (Board Order dated
October 31, 1989).
Legal Developments
agerial resources, future prospects and convenience
and needs considerations are also consistent with
approval.
Based on the foregoing and all of the facts of record,
the Board has determined that the application should
be, and hereby is, approved. The transaction shall not
be consummated before the thirtieth calendar day
following the effective date of this Order, or later than
three months after the effective date of the Order,
unless such period is extended for good cause by the
Board or the Federal Reserve Bank of San Francisco,
acting pursuant to delegated authority.
By order of the Board of Governors, effective
October 31, 1989.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, and LaWare. Absent and not voting:
Governor Kelley.
JENNIFER J . JOHNSON
Associate
Secretary of the Board
BankAmerica Corporation
San Francisco, California
Seafirst Corporation
Seattle, Washington
Order Approving Acquisition
Company
of a Bank Holding
BankAmerica Corporation, San Francisco, California
("BankAmerica"), and Seafirst Corporation, Seattle,
Washington ("Seafirst") (collectively "Applicants"),
bank holding companies within the meaning of the
Bank Holding Company Act ("BHC Act"), have
applied for the Board's approval under section 3(a)(3)
of the BHC Act (12 U.S.C. § 1842(a)(3)) to acquire all
of the voting shares of American Savings Financial
Corporation, and thereby indirectly to acquire American Savings Bank, both of Tacoma, Washington. 1
1. American Savings Bank is an FDIC-insured state-chartered
savings bank which had previously met the "qualified thrift lender"
test of the Home Owners Loan Act and elected to be deemed a
"savings association" under section 10 of that Act. 12 U.S.C.
§ 1730a(o) & (n), to be recodified at 12 U.S.C. § 1467a(m) & (1). As a
result, American Savings Financial Corporation has been subject to
regulation under the Savings and Loan Holding Company Act. American Savings Bank has applied to the Office of Thrift Supervision
("OTS") to rescind its election as a "savings association" and to be
treated as a bank. Consummation of this proposal is conditioned upon
American Savings Bank obtaining such deregistration from the OTS.
Upon the acquisition of American Savings Bank, Applicants propose
to merge American Savings Bank into Seattle-First National Bank,
and have sought approval from the Office of the Comptroller of the
Currency to consummate the merger.
Upon consummation, Seafirst also proposes to acquire directly
American Savings Bank's only subsidiary, American North Pacific
827
Notice of the applications, affording an opportunity
for interested persons to submit comments, has been
duly published (54 Federal Register 25,346 (1989)).
The time for filing comments has expired, and the
Board has considered the applications and all comments received in light of the factors set forth in
section 3(c) of the Act.
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 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." 2 The Washington
State banking laws permit the acquisition of Washington banks and bank holding companies by an outof-state bank holding company that meets the requirements of Washington law, including a reciprocity
requirement. 3 The Board has determined previously
that a California bank holding company may acquire a
bank holding company and a bank in Washington. 4
Accordingly, Board approval of this proposal is permissible under the Douglas Amendment.
BankAmerica operates two banking subsidiaries in
California and Washington. BankAmerica is the third
largest commercial banking organization in the United
States and is the largest commercial banking organization in California, where it controls deposits of $51.1
billion, representing approximately 24.4 percent of the
total deposits in commercial banks in California. 5
BankAmerica, through Seafirst, is the largest commercial banking organization in Washington, controlling deposits of $8.4 billion, representing approximately 30.1
percent of the total deposits in commercial banks in
Corporation ("ANPC"). ANPC is engaged in insurance agency and
real estate investment activities that have not been permitted under
the BHC Act. Applicants have committed to divest ANPC's impermissible real estate investments and insurance activities within two
years of consummation of this proposal. Prior to divestiture of the
impermissible insurance agency activities, Applicants will limit
ANPC's insurance agency activities to the renewal of existing policies
and those credit-related insurance agency activities permitted under
section 4(c)(8) of the BHC Act.
2. 12 U.S.C. § 1842(d). 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.
BankAmerica's home state is California.
3. Wash. Rev. Code § 30.04.232 (1986) (Effective as of July 31,
1987). California law satisfies the reciprocity requirements of Washington law. Cal. Financial Code § 3773 (West 1989) (Effective until
January 1, 1991). In addition, American Savings Bank has been
conducting business longer than three years, which satisfies the
longevity requirements of Washington law.
4. Security
Pacific
Corporation,
7 3 FEDERAL RESERVE BULLETIN
746 (1987).
5. State deposit data are as of December 31, 1988. Market deposit
data are as of June 30, 1987.
828
Federal Reserve Bulletin • December 1989
Washington ("state deposits"). American Savings Financial Corporation is the 8th largest commercial banking
organization in the state, controlling deposits of $510.4
million, representing approximately 1.8 percent of state
deposits. Upon consummation, BankAmerica would remain the largest commercial banking organization in
Washington, controlling deposits of $8.9 billion, representing approximately 31.9 percent of state deposits.
Consummation of the proposal would not increase significantly the concentration of banking resources in Washington.
BankAmerica competes directly with American
Savings Financial Corporation in the Seattle and
Bremerton banking markets. The proposed acquisition
would not increase BankAmerica's ranking in either of
these markets or substantially increase its market
share in either market. Upon consummation of this
proposal, the Herfindahl-Hirschman Index ("HHI")
would increase by less than 200 points in each of these
markets, 6 and if 50 percent of the deposits held by
thrift institutions were included in the calculation of
market concentration, upon consummation of the proposal both the Seattle and Bremerton banking markets
would remain moderately concentrated, and the HHI
in both markets would increase by less than 100
points. 7 In addition, numerous competitors would remain in each market.
Based on the facts of record in this case, the Board has
determined that consummation of the proposal would not
have a significant adverse effect on 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.
In evaluating these applications, the Board has
carefully considered the financial resources of Applicants and the effect on those resources of the proposed
acquisition. The Board has previously stated that it
6. Under the revised Department of Justice Merger Guidelines (49
Federal Register 26,823 (June 29, 1984)), any market in which the
post-merger HHI is greater than 1800 is considered highly concentrated, and the Department is likely to challenge a merger that
increases the HHI by more than 50 points unless other factors indicate
that the merger will not substantially lessen competition. The Department of Justice has informed the Board that a bank merger or
acquisition is not likely to be challenged (in the absence of other
factors indicating an anticompetitive effect) 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 acquisitions for anti-competitive
effects implicitly recognizes the competitive effects of limited purpose
lenders and other non-depository financial entities.
7. The Board previously has indicated that thrift institutions have
become, or have the potential to become, important competitors of
commercial banks. See 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 FEDERAL RESERVE BULLETIN 298 (1983).
expects banking organizations contemplating expansion proposals to maintain strong capital levels substantially above the minimum levels specified in the
Board's Capital Adequacy Guidelines, without significant reliance on intangibles, particularly goodwill. 8
The Board carefully analyzes the effect of expansion
proposals on the preservation or achievement of
strong capital levels and has adopted a policy that
there should be no significant diminution of financial
strength below those levels for the purpose of effecting
major expansion. 9
In this case, the Board notes that BankAmerica has
taken the appropriate steps over the last few years to
strengthen its capital position, both through the issuance of new equity and through the retention of
earnings. BankAmerica's capital ratios are above the
minimum requirements under the Board's Capital Adequacy Guidelines. In addition, BankAmerica would
effect this transaction through an exchange of shares,
and the proposal will have a de minimis effect on
Applicants' capital position. Moreover, this proposal
would result in a small increase in BankAmerica's
asset size in relative terms.
In light of these considerations, the Board concludes
that the financial resources of Applicants are consistent
with approval of the proposal. Moreover, managerial
resources, future prospects and convenience and needs
considerations are also consistent with approval.
Based on the foregoing and all of the facts of record,
the Board has determined that the applications should
be, and hereby are, 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 the Order,
unless such period is extended for good cause by the
Board or the Federal Reserve Bank of San Francisco,
acting pursuant to delegated authority.
By order of the Board of Governors, effective
October 31, 1989.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, and LaWare. Absent and not voting:
Governor Kelley.
JENNIFER J . JOHNSON
Associate
Secretary
of the Board
8. The Bank of New York Company, Inc., 74 FEDERAL RESERVE
BULLETIN 257 (1988); Capital Adequacy Guidelines, 50 Federal Register 16,057 (April 24, 1985).
9. Thus, for example, the Board has generally approved proposals
involving a decline in capital only where the applicants have promptly
restored their capital to pre-acquisition levels following consummation of the proposals and have implemented programs of capital
improvement to raise capital significantly above minimum levels. See,
e.g., Citicorp, 72 FEDERAL RESERVE BULLETIN 726 (1986); Security
Pacific Corporation, 72 FEDERAL RESERVE BULLETIN 800 (1986).
Legal Developments
Orders Issued Under Section 4 of the Bank
Holding Company Act
Bankers Trust New York Corporation
New York, New York
Order Approving Application To Act as Agent in the
Private Placement of All Types of Securities and To
Act as Riskless Principal in Buying and Selling
Securities
Bankers Trust New York Corporation, New York,
New York ("Bankers Trust"), a bank holding company within the meaning of the Bank Holding Company Act ("BHC Act"), has applied for the Board's
approval under section 4(c)(8) of the BHC Act
(12 U.S.C. § 1843(c)(8)) and section 225.23 of the
Board's Regulation Y (12 C.F.R. 225.23), for its subsidiary, BT Securities Corporation, New York, New
York ("Company"), to act as agent in the private
placement of all types of securities, including providing related advisory services, and to buy and sell all
types of securities on the order of investors as a
"riskless principal".
Bankers Trust has previously received approval
under the BHC Act for Company to underwrite and
deal in, to a limited extent, certain securities. 1 Company is also authorized to provide investment advisory
and securities brokerage services on a combined basis
to institutional customers. 2
Bankers Trust, with approximately $62.2 billion in
consolidated assets, is the eighth largest commercial
banking organization in the United States. 3 Bankers
Trust operates two subsidiary banks and engages
directly and through subsidiaries in a broad range of
permissible nonbanking activities in the United States.
Company is and will continue to be a broker-dealer
registered with the Securities and Exchange Commission and subject to the record-keeping, reporting,
fiduciary standards, and other requirements of the
Securities Exchange Act of 1934 and of the National
Association of Securities Dealers.
1. See J.P. Morgan & Co. Incorporated, The Chase Manhattan
Corporation, Bankers Trust New York Corporation, Citicorp and
Security Pacific Corporation, 75 FEDERAL RESERVE BULLETIN 192
(1989) C'J.P. Morgan et al."); 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);
Citicorp, J.P. Morgan & Co. Incorporated and Bankers Trust New
York Corporation, 73 FEDERAL RESERVE BULLETIN 473 (1987); and
12 C.F.R. 225.25(b)(16).
2. See Bankers Trust New York Corporation, 74 FEDERAL RESERVE
BULLETIN 6 9 5 ( 1 9 8 8 ) .
3. Banking data are as of June 30, 1989.
829
Notice of the applications, affording interested persons an opportunity to submit comments on the proposal, has been published (54 Federal Register 29,940
(1989)). The time for filing comments has expired, and
the Board has considered the applications and all
comments received in light of the public interest
factors set forth in section 4(c)(8) of the BHC Act. The
Board received written comments opposing the application from the Securities Industry Association
("SIA"), a trade association of the investment banking industry, and the Investment Company Institute
("ICI"), a trade association of the mutual fund industry.
Because Company would be affiliated through common ownership with a member bank, Company may
not be "engaged principally" in the "issue, flotation,
underwriting, public sale, or distribution" of securities
within the meaning of section 20 of the Banking Act of
1933 (the "Glass-Steagall Act"). 4 In its earlier decisions, the Board has determined that Company is not
"engaged principally" in section 20 activities if revenues from underwriting and dealing in securities that
banks are not authorized to underwrite and deal in
directly ("ineligible securities") do not exceed 10
percent of Company's gross revenues. 5 Bankers Trust
states that the proposed private placement and riskless
principal activities are not the kind of securities activities described in section 20 and therefore should not
be subject to the revenue limit on ineligible securities
activities.
In addition, the Board must determine whether the
proposed activity is so closely related to banking as to
be a proper incident thereto within the meaning of
section 4(c)(8) of the BHC Act and is, on this basis, a
permissible activity for bank holding companies.
I. Glass-Steagall Analysis
A. Private
Placements
The private placement market involves the placement
of new issues of securities with a limited number of
sophisticated purchasers in a nonpublic offering. A
financial intermediary in private placement transactions acts solely as an agent of the issuer in soliciting
4. Section 20 of the Glass-Steagall Act (12 U.S.C. § 377) provides
that:
" . . . no member bank shall be affiliated . . . with any . . .
organization engaged principally in the issue, flotation, underwriting, public sale, or distribution at wholesale or retail or through
syndicate participation of stocks, bonds, debentures, notes, or
other securities. . . . "
5. Order Approving Modifications to Section 20 Orders, 75 FEDERAL RESERVE BULLETIN 751 (Order dated September 21, 1989).
830
Federal Reserve Bulletin • December 1989
purchasers; it does not purchase the securities and
attempt to resell them.
Securities that are privately placed are not subject to
the registration requirements of the Securities Act of
1933.6 Privately placed securities are offered only to
financially sophisticated institutions and individuals
and not to the public. 7 In the Board's view, Company's private placement of debt and equity securities
within the limits proposed by Bankers Trust does not
involve the underwriting or public sale of securities for
purposes of section 20 and the revenues from the
proposed activities should not be subject to the
10 percent revenue limitation on ineligible securities
activities.
Underwriting. In 1977, the Board's staff concluded
that the private placement of all types of debt or equity
securities directly by a bank did not violate sections 16
and 21 of the Glass-Steagall Act, the Act's provisions
that apply to the direct activities of banks. 8 In particular, the staff concluded that this activity was not
"underwriting" for purposes of the Act because the
term "underwriting" connotes a public offering of
securities and a private placement does not involve a
public offering.
In 1985, the rationale of the staff opinion was
adopted by the Board in determining that commercial
paper private placement as conducted directly by
Bankers Trust's subsidiary bank as an agent for customers does not constitute the "underwriting," "distribution" or impermissible "selling" of such securities for purposes of sections 16 or 21. 9 The latter
determination was upheld by the U.S. Court of Appeals for the D,C. Circuit in Securities Industry Association v. Board of Governors, 807 F.2d 1052 (D.C.
Cir. 1986), cert, denied, 483 U.S. 1005 (1987) ("Bankers Trust //").
In reliance on the Bankers Trust II precedent, the
Board determined that the private placement of commercial paper by a bank holding company nonbank
subsidiary is not underwriting or dealing in securities
for purposes of section 20 of the Glass-Steagall Act,
and is not subject to the quantitative "engaged principally" limits on ineligible securities underwriting in
section 20. 10
6. 15 U.S.C. § 77d(2).
7. SEC Regulation D, 17 C.F.R. 230.506.
8. 12 U.S.C. §§ 24 Seventh, 378(a)(1); Federal Reserve Board Staff
Study, Commercial Bank Private Placement Activities 81-99 (June
1977).
9. Statement Concerning Applicability of the Glass-Steagall Act to
the Commercial Paper Placement Activities of Bankers Trust Company (June 4, 1985) ("Commercial Paper Statement").
10. See
The Bank
of Montreal,
74 FEDERAL RESERVE BULLETIN
500, 501 (1988); Bankers Trust New York Corporation, 73 FEDERAL
RESERVE BULLETIN 138 (1987). Supreme Court opinions interpreting
the Glass-Steagall Act indicate that where a particular activity is
Accordingly, it is now well established that placing
new issues of securities with a limited number of
purchasers in transactions that do not involve a public
offering is not underwriting for purposes of the GlassSteagall Act. 11 In the commercial paper case, the
Board and the court found that Bankers Trust's activities did not constitute a public offering because:
(1) the bank places commercial paper by separately
contacting large financial and non-financial institutions,
(2) the bank does not place commercial paper with
individuals,
(3) the maximum number of offerees and purchasers
of commercial paper placed by the bank in any given
case is relatively limited,
(4) the bank makes no general solicitation or advertisement to the public with respect to the placement
of a particular issue of commercial paper, and
(5) the commercial paper placed with the bank's
assistance is issued in very large average minimum
denominations, which are not a likely investment of
the general public. 12
The activities at issue here would comply with these
limitations, except that Company would privately
place securities not only with institutional customers,
but also with individuals whose net worth (or joint net
worth with a spouse) exceeds $1 million. This alteration in the proposed private placement activities
would not, in the Board's opinion, turn them into a
public offering. SEC rules governing private placements allow securities to be placed with individuals,
along with institutional customers, who qualify as
accredited investors without changing the private
character of the placement. 13 Bankers Trust has stated
found not to be the type of activity prohibited to banks by sections 16
and 21, it should not be viewed as the kind of activity described in
section 20. Bankers Trust, 73 FEDERAL RESERVE BULLETIN at 140,
citing, Board of Governors v. Investment
Company
Institute,
450 U.S. 46, 60-61 n. 26 (1981).
11. The SI A argues that the fact that Bankers Trust is now
proposing that Company privately place all types of securities, as
opposed to only high grade commercial paper notes, is significant in
assessing the applicability of the Glass-Steagall Act prohibitions in
this case. Because the above-noted analysis by the Board and the
court clearly recognized, however, that commercial paper is a security
for purposes of the Glass-Steagall Act, the fact that Bankers Trust
now wishes to expand its private placement operation to include all
types of securities would not, by itself, change this activity into
underwriting and dealing, provided the methods the section 20 affiliate
uses to place the securities do not differ materially from those involved
in the commercial paper case.
12. Bankers Trust 11, 807 F.2d at 1064; Commercial Paper Statement at 29-30.
13. Section 5 of the Securities Act of 1933 ("1933 Act") (15 U.S.C.
§ 77e) provides that any security offered or sold to the public must be
registered with the SEC, which requires the issuer of such securities
to make full disclosure of all material facts relating to the offering. The
1933 Act provides for limited exceptions from this registration requirement in certain situations. Examples of this are when a particular class
Legal Developments
that all of the individuals with which securities will be
placed will qualify as accredited investors under SEC
rules. The fact that a particular offering of securities is
a private placement (and not an underwriting) for
purposes of the securities laws is "highly relevant" to
whether the transaction involves an underwriting for
Glass-Steagall Act purposes. 14
In addition, the Board believes that the other limitations on the proposed activity should assure that
securities are not offered to the public. Bankers Trust
has agreed that Company would not make any general
solicitation or advertisement to the public regarding
the placement of particular securities, and has stated
that the minimum denomination of a security being
private placed would likely be $250,000, with a likely
average in excess of $1 million. Members of the
general public are unlikely to buy instruments in such
large denominations. Furthermore, Bankers Trust has
agreed that Company will not privately place securities that are registered under the Securities Act of
1933, and that Company will be bound by all of
provisions of that Act that limit the scope of private
placements to non-public transactions.
In sum, while Company's private placement methods differ slightly in scope from those previously
approved by the Board, the Board is of the opinion
that the operational limitations agreed to by Bankers
Trust would assure that Company would not become
involved in the public offering of any securities. 15
Public Sale. In its 1987 Order approving the first
section 20 applications, the Board ruled that the term
"public sale" used in section 20 is broad enough to
include activities where the affiliate buys and sells
securities for its own account as part of its business
operations. 16 Here, Company would act solely as an
agent in privately placing securities, and would not
purchase for its own account or otherwise inventory
the securities being placed. Nor would Bankers Trust
or any of its subsidiaries extend credit to the issuer of
the securities being placed on substantially the same
of securities, such as United States or state and local government
obligations, is involved, or when a particular transaction, such as a
private placement, is involved. The SEC's Regulation D contains
rules governing the private placement exception. Under these rules,
offers and sales of securities that are limited to accredited investors
(defined by the regulation to include sophisticated institutions and
individuals) and 35 other investors are generally considered to be
transactions not involving public offerings. 17 C.F.R. 230.506.
14. See Bankers Trust II, 807 F.2d at 1063-64.
15. The ICI has objected to Bankers Trust's proposal to the extent
that it could be construed to seek approval for Company to privately
place securities of investment companies that are advised by Company or Bankers Trust. Bankers Trust has not specifically requested
approval to place such securities, and would be prohibited from doing
so under the Board's policy statement relating to investment adviser
activities by bank holding companies and nonbank subsidiaries.
12 C.F.R. 225.125(g),(h).
16. 7 3 F E D E R A L R E S E R V E B U L L E T I N at 5 0 8 .
831
terms as the securities. In light of these factors, the
Board finds that the proposed private placement activities would not constitute the "public sale" of securities, and thus need not be viewed as an ineligible
securities activity for purposes of the 10 percent
revenue test. 17
B. Riskless Principal
Transactions
"Riskless principal" is the term used in the securities
business to refer to a transaction in which a brokerdealer, after receiving an order to buy (or sell) a
security from a customer, purchases (or sells) the
security for its own account to offset a contemporaneous sale to (or purchase from) the customer. 18
Description of Riskless Principal Transactions. In
acting as a dealer, a securities firm maintains an
inventory of various securities for its own account and
buys and sells securities as a principal. In contrast,
riskless principal transactions typically are undertaken
as an alternative method of executing orders by customers to buy or sell securities on an agency basis. For
example, if a customer places an order to purchase
securities the firm does not maintain in its inventory,
the broker-dealer must purchase the securities from a
third party and has the option of acting either as an
agent of the customer or as a riskless principal in
making the purchase, at the direction of the customer
or in its own discretion. If the firm elects to act as a
riskless principal in executing the transaction, it will
purchase the securities for its own account from a
third party dealer at that dealer's "inside" price and
then, acting as a principal, resell them to the customer,
adding a mark up over its cost. However, the brokerdealer does not confirm the transaction with its customer until the securities have been purchased from
the third party dealer. In other words, if the brokerdealer for some reason does not complete the purchase
of the securities ordered by the customer, it has no
obligation to provide the securities to the customer. 19
The SEC's confirmation rules require that a brokerdealer that acts as a riskless principal in executing the
17. The Board notes that a proposed SEC initiative, Rule 144A, may
lead to the creation of an active secondary market for privately placed
securities which may place a section 20 subsidiary under competitive
pressure to serve as a dealer in the securities the subsidiary has
privately placed, as is the case with firms that have made a public
offering of securities. In this eventuality, if the securities placed are
ineligible, the revenues derived from serving as a dealer or acting as a
principal in a private placement would have to be treated as derived
from ineligible securities activities for purposes of the 10 percent
limitation.
18. See Securities and Exchange Commission Rule 10b—10.
17 C.F.R. 240.10b-10(a)(8)(i).
19. Riskless principal operations are described generally in SEC,
Report of Special Study of Securities Markets, H. Doc. No. 95, Pt. 2,
88th Cong., 1st Sess. 611 (1963).
832
Federal Reserve Bulletin • December 1989
customer's order disclose to the customer the amount
of the mark-up, mark-down or other remuneration
charged by the broker-dealer only if the securities
traded are equity securities. If the broker-dealer elects
to act as an agent, the SEC disclosure rules require
that the customer be advised of the brokerage fee
charged in all cases, regardless of the type of securities
traded. In addition, in an agency transaction, if the
customer requests, the broker-dealer must disclose the
identity of the person from whom the securities were
purchased or to whom they were sold. 20
Bankers Trust envisions that, in accordance with
industry practice, Company might have an incentive to
act as a riskless principal (as opposed to an agent) in
executing customer orders in some of the following
situations:
(1) a customer wishes to avoid disclosure of its
identity to market participants so that the customer's strategy with respect to purchases or sales of
certain securities is not ascertainable by others in
the market;
(2) Company knows that the prospective seller (or
purchaser) will not wish to deal directly with the
customer; 21 or
(3) the customer (or the Company) wishes a single
"all-in" price quotation for the transaction rather
than being charged a separate purchase price plus
brokerage commission.
Riskless principal transactions are understood in the
industry to include only transactions in the secondary
market. Bankers Trust thus proposes that Company
would not act as a riskless principal in selling securities at the order of a customer that is the issuer of the
securities to be sold or in any transaction where
Company has a contractual agreement to place the
securities as agent of the issuer. Company also would
not act as a riskless principal in any transaction
involving a security for which it makes a market.
Public Sale. As noted above, the Board, in its 1987
section 20 Order, stated that the term "public sale" as
used in section 20 is broad enough to encompass
transactions where a dealer acts for his own account
20. 17 C.F.R. 240.10b-10(a)(8). Company would not be required to
disclose to counterparties that it is acting as a "riskless principal". To
other dealers with which it executes trades, Company would be
another dealer acting as a principal in buying and selling for its own
account.
21. For example, some large direct issuers of commercial paper,
which do not use intermediaries to place their paper, do not deal with
small purchasers not in their traditional investor base, although they
will sell to a broker-dealer. If a broker-dealer's customer wishes to
purchase this commercial paper, the broker-dealer will buy it directly
from the issuer as a principal and then resell it to the customer.
by maintaining an inventory of particular issues of
securities in the secondary market. 22
In acting as a riskless principal, however, Company
would not, in the Board's opinion, be acting as a dealer
for its own account in buying or selling securities in a
riskless principal capacity because Company would
never assume the risk of ownership of the securities.
As shown above, Company would not be obligated to
its customer to buy or sell securities until after an
offsetting purchase or sale of the securities has already
been executed. If the market price of the securities
ordered by the customer suddenly were to change
significantly, before Company is able to arrange an
offsetting open market transaction on terms that would
protect it from loss, Company can decline to execute
the order. 23
Although Company would maintain an inventory of
particular issues of securities in connection with its
previously approved ineligible securities activities,
Company would not engage in any riskless principal
transaction for any security carried in its inventory.
Nor would Company hold itself out as making a
market in the securities that it buys and sells as
riskless principal and would not enter quotes for
specific securities in the NASDAQ or any other dealer
quotation system in connection with riskless principal
transactions. Finally, Bankers Trust has also stated
that Company's riskless principal transactions will not
be on behalf of its foreign affiliates that engage in
securities dealing activities overseas. 24
22. Citicorp et al., 73 FEDERAL RESERVE BULLETIN at 507. The
Board interpreted the term " s a l e " to refer to transactions in which a
seller acting as principal transfers title to a buyer.
23. Bankers Trust also argues that the Board, in its Order approving
BankAmerica's acquisition of Charles Schwab & Co., concluded that
riskless principal transactions "appear to be consistent with permissible brokerage activities, . . . . " BankAmerica
Corporation,
69
FEDERAL RESERVE BULLETIN
105, 116 n . 5 5 (1983). In that
case,
however, the Board also noted that Schwab only engaged in riskless
principal transactions with respect to bank eligible municipal securities, and even if the activity were covered by section 20, Schwab did
not "engage principally" in these transactions. Thus, in the Schwab
Order, the Board did not squarely rule that riskless principal transactions are not covered by section 20.
24. In 1986, the OCC allowed national banks to act, through an
operations subsidiary, as a riskless principal in transactions with
foreign securities affiliates. OCC Interpretive Letter N o . 371 (June 13,
1986). The Board, however, subsequently ruled that a nonbank
subsidiary of a holding company should not participate in such
transactions. Letter from William Wiles to Security Pacific Corporation (April 18, 1988). The Board did not state absolutely that riskless
principal activities were covered by section 20 of the Glass-Steagall
Act. The Board's decision in that case was based on the fact that the
company held itself out as making a market in specific securities,
entered quotes in a dealer quotation system, and acted in this country
on behalf of an affiliated foreign securities dealer. Thus, there was a
substantial potential for evading the requirement of the Board's
Regulation K that such affiliates may only engage in securities dealing
outside the United States. Company will not perform any of these
functions.
Legal Developments
Company would be subject to the "business" or
"credit" risk that its customer (or the counterparty)
may fail to pay for securities purchased or fail to
deliver securities sold in a riskless principal transaction. In that eventuality, Company would have to
proceed against the defaulting party for breach of the
agreement to buy or sell securities. However, this
risk is not significantly different from the credit risk a
broker assumes when it executes a customer's order
solely as agent. It is clear that this risk does not turn
the agency transaction into one for the broker's own
account. 25 Furthermore, like a brokerage transaction, the origination of riskless principal transactions
in general is spurred by customer demand for an
intermediary in a purchase or sale transaction, and
not by solicitations on the part of the intermediary. 26
In addition, in differentiating between brokerdealers executing trades as riskless principal and
market makers acting for their own account, the SEC
has found that "[w]hile both may execute on a
principal basis, the function of the former is limited
to execution of the order, and in essence performing
the function of a broker . . . . The market maker, on
the other hand, in addition to executing the transaction, provides marketability by assuming the risk of
taking positions." 2 7 It is clear that brokerage transactions are not the public sale of securities under
section 20. 28
This conclusion is fully consistent with the way
riskless principal transactions have been treated by
the Board in the past. In 1958, the Board issued a
ruling under Regulation R, which implements section
32 of the Glass-Steagall Act, the management inter-
25. Another reason given for why Company may act as riskless
principal and not as agent in specific transactions is that the customer
may be unwilling to assume the credit risk associated with a particular
counterparty. However, Company's assumption of the credit risk in
such a case would not mean that the transaction is for Company's own
account. Indeed, a broker executing an order as agent on the floor of
an exchange assumes essentially the same risk, since the broker is
technically held responsible for the transaction.
26. Company enters into a customer account agreement with each
of its customers. The agreement is the same regardless of whether
Company is acting as broker, dealer or riskless principal with respect
to a particular customer, and Company asserts that therefore a
customer's liability to Company is the same regardless of the form of
the transaction. Company would have the right to sue a defaulting
party for breach of contract.
27. Report of Special Study of Securities Markets of the Securities
and Exchange Commission (Part 2), House Doc. No. 95, Pt. 2, 88th
Cong., 1st Sess. 611 (1963). Because the SEC has found riskless
principal transactions to be "essentially equivalent" to agency transactions, it has subjected riskless principal transactions to the customer
confirmation and disclosure requirements. Confirmation Disclosure
for Reported Securities, [1984-1985 Transfer Binder] Fed. Sec. L.
Rep. (CCH) 1 83,734 (February 4, 1985). These requirements relate to
disclosure to customers of remuneration received in certain transactions.
28. Securities Industry Association
207, 216-21 (1984).
v. Board of Governors, 468 U.S.
833
locks provision of that statute, stating that riskless
principal transactions should be regarded as brokerage activities and not as underwriting or dealing in
securities for purposes of that provision. The Board
noted that because the firm's customers wished to be
billed for securities at a net price rather than be
charged an explicit fee, it was necessary for the firm
in these instances to go into the open market and as
principal buy the securities for which the firm had
received orders. These transactions, the Board decided, are not materially different from ordinary
brokerage transactions, noting that the securities
involved were not in the firm's portfolio or were
securities the firm had committed to take. 29 Since the
securities activities described in sections 32 and 20
are the same, it follows that riskless principal transactions should not be treated as covered by section
20.
Underwriting. In riskless principal transactions, the
Company executes orders by an investor and would
not act on behalf of an issuer of new securities. Thus,
Company would not be involved in making any public
offering of securities as agent for the issuer. Hence,
these activities do not constitute underwriting for
Glass-Steagall purposes.
In sum, the Board concludes that Company's
riskless principal activity would not be a "public
sale", or "underwriting" of securities and thus need
not be viewed as an ineligible securities activity for
purposes of the 10 percent test. Company now acts
as a "risk" principal or market maker with respect to
ineligible securities and the revenues from these
activities are subject to the 10 percent revenue limit.
In order to distinguish these "true" principal from
riskless principal transactions, which would be excluded from the 10 percent revenue limit, the Board
requires Company, as a condition of approval of this
activity, to maintain specific records that would
clearly identify all riskless principal transactions.
Thus, examiners will be readily able to trace the
resulting revenue for assessing compliance with the
10 percent cap.
II. S e c t i o n 4(c)(8) A n a l y s i s
In every application under section 4(c)(8) of the BHC
Act, the Board must find that the proposed activity is
"so closely related to banking . . . as to be a proper
incident thereto." In determining whether the performance of an activity meets the proper incident to
banking test, the Board must determine whether the
29. Federal Reserve Regulatory Service H 3-903. The staffs of the
OCC and the FDIC have reached similar conclusions.
834
Federal Reserve Bulletin • December 1989
public benefits expected from the performance of that
activity outweigh potential adverse effects. 30
A. Closely Related to Banking
Analysis
Under the established test for determining when an activity is closely related to banking, the Board may find that
an activity is closely related to banking if, among other
things, banks generally have in fact provided the proposed
activity or if banks provide services so similar to the
proposed services that banking organizations are particularly well equipped to provide the proposed services.31 As
the Board has previously acknowledged, commercial
banks are substantially involved in private placements of
all types of debt and equity securities, and, as the Board
noted recently, "banks are among the largest firms that
act as agent in the private placement of corporate
securities."32 Bankers Trust's lead bank itself was recently ranked among the top placement agents as measured by amount of securities placed.
The proposed riskless principal activities meet the
closely related to banking test in section 4(c)(8). Although there is no evidence in the record that banks
are significantly involved in riskless principal activities, at least with respect to ineligible securities, banks
have long provided brokerage services and, as noted
above, riskless principal transactions are "essentially
equivalent" to brokerage services. In the Board's
view, therefore, the proposed riskless principal services are so operationally and functionally similar to
banking activities that banking organizations are particularly well equipped to provide the services. Accordingly, the Board finds that Bankers Trust's proposed
activities meet the "closely related to banking" test.
B. Proper Incident to Banking
Analysis
Public Benefits. Bankers Trust is proposing that Company will offer private placement services on a nation-
30. Section 4(c)(8) provides that in determining whether a particular
activity is a proper incident to banking, the Board shall consider:
whether its performance by an affiliate of a holding company can
reasonably be expected to produce benefits to the public, such as
greater convenience, increased competition, or gains in efficiency, that outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair competition,
conflicts of interests, or unsound banking practices.
12 U.S.C. § 1843(c)(8).
31. See National Courier Association v. Board of Governors, 516
F.2d 1229, 1237 (D.C. Cir. 1975).
32. J.P.
Morgan
& Co. Incorporated
et al., 75 FEDERAL RESERVE
BULLETIN 192, 199 (1989). See also Federal Reserve Board Staff
Study, Commercial Bank Private Placement Activities (1977). On this
basis, the Board has previously determined that the private placement
of commercial paper by a bank holding company subsidiary is
permissible under section 4(c)(8). See The Bank of Montreal, 74
FEDERAL RESERVE BULLETIN 5 0 0 , 501 (1988); Bankers
Trust
York Corporation,
73 FEDERAL RESERVE BULLETIN 138 (1987).
New
wide basis. Bankers Trust asserts that approval of its
application would enable Company to be increasingly
competitive in meeting the financing requirements of
issuers, would promote the efficiency of the financial
markets, and would provide greater convenience for
Company's customers as Bankers Trust continues to
consolidate all of its securities activities in one subsidiary. Bankers Trust argues that to be competitive and
efficient, a financial intermediary, such as Company,
must be able to use either a public offering or a private
placement, whichever is more suitable in a particular
case.
The Board recognizes that the transfer of private
placement activities currently being performed by
Bankers Trust's subsidiary bank to Company is likely
to produce some public benefits. Bankers Trust would
consolidate its placement and underwriting services in
a single entity, with both operations being performed
by the same staff. This should result in greater convenience to customers of Company and produce greater
efficiency by reducing duplication of similar functions
in the bank and in the section 20 affiliate and through
economies of scale.
The proposed riskless principal activities would be
likely to result in some increased benefits to the public
by allowing Company to provide a wider range of
services to customers. In at least some cases, it may
be necessary to act as a riskless principal rather than
as agent, in order to serve the needs of the customer,
where, for example, the customer wants to avoid
disclosing its investment plans.
In sum, based upon the factors noted above, the
Board finds that approval of Bankers Trust's proposal
would result in benefits to the public.
Adverse Effects—Compliance
with Firewalls. In its
prior Orders approving expanded securities activities
for bank holding companies, the Board has imposed a
comprehensive framework of restrictions designed to
avoid potential conflicts of interest, unsound banking
practices and other adverse effects in connection with
the approved activities and to insulate the bank, which
is protected by the federal safety net, from the securities marketing operations of the section 20 subsidiary. These firewall conditions for the most part apply
by their terms only when the section 20 subsidiary is
engaged in underwriting or dealing activities, because
private placement activities were not involved in these
Orders. Bankers Trust has agreed that it would abide
by most of these firewall conditions in connection with
its proposed private placement and riskless principal
activities in the same manner as the firewalls apply to
underwriting activities. Bankers Trust believes that
certain of the firewall conditions in the prior approval
Orders are unnecessary or inappropriate for activities
Legal Developments
conducted only or essentially as an agent. The Board
finds that these few conditions are not necessary in
this proposal to avoid any adverse effects.
The most important of these limitations is the modified firewall condition (Condition 20) permitting the
marketing of securities of affiliates where the securities
are rated by an unaffiliated, nationally recognized
rating organization or are issued or guaranteed by
FNMA, FHLMC or GNMA (or represent interests in
such securities). Bankers Trust would adhere to this
condition except that Company seeks to privately
place unrated securities of affiliates with sophisticated
institutions.
The purpose of the affiliate securities limitations is
to protect investors from the possibility that the securities of the affiliate represent its least creditworthy
assets and to protect the reputation of affiliated banks,
which could be damaged if the underwriting subsidiary
sells low-quality securities issued by its affiliates to the
public and those securities subsequently deteriorate in
quality. Because the sophisticated institutions with
which Company seeks to place affiliates' securities
have the expertise to make their own judgments about
the creditworthiness of the securities being purchased
and would have only themselves to blame if losses are
subsequently experienced, the Board believes that any
adverse effects of placing unrated securities of affiliates will be sufficiently mitigated if limited to sales to
sophisticated institutions. 33
In addition, requiring Company to include private
placements in its policies limiting overall exposure to a
single customer whose securities are underwritten
(Condition 12) does not appear necessary where Bankers Trust would not assume any risk of loss on the
obligations of any customer. It must be recognized,
however, that private placement services may be
offered as part of a bundle or package of financing
services to an issuer, the mix of which may affect the
organization's consolidated exposure to a customer.
Further, as the Board noted in its January 1989 Order,
the combination of fees received by the consolidated
organization may motivate a bank affiliate to be less
than objective in assessing the credit risk on the loan
portions of a financing package. Accordingly, the
33. Given that Bankers Trust's capital plan and procedures for
underwriting debt securities were approved in late July, there would
appear to be little need at this time to require additional capital or
supervisory review before initiating private placement activities already being conducted solely as agent through the bank (Conditions 3,
4 and 28). Moreover, because the activities being approved are not
subject to the 10 percent revenue limitation, there is no need to limit
the transfer of these activities to a subsidiary of Company (Condition
25) to prevent evasions of the revenue limitation, provided that
Bankers Trust consults with staff before any such transfer to assure
that none of the firewall provisions committed to is evaded by the
transfer.
835
Board will expect the Company to maintain specific
records of its placement transactions, identifying specifically those where credit is provided by a depository
affiliate, so that examiners will be able to readily
identify and trace all components of the transactions.
Finally, the Board notes that there has been little
evidence of unsound practices or conflicts of interest
as a result of the private placement activities banks
have engaged in directly over the years.
Nor does it appear that the proposed riskless principal operations would result in significant adverse
effects. As explained above, Company would not
assume the market risk for securities being bought and
sold and the activities would be subject to those
firewall limitations applicable to the private placement
functions.
One area of possible conflicts of interest and unfair
practices not directly addressed by the existing firewall provisions is the potential for charging the customer excessive mark-ups or mark-downs in the execution of the customer's order as a riskless principal.
This potential exists because in these transactions the
broker-dealer charges a single "all-in" price, which
includes its compensation, rather than charging a
separately disclosed commission. In these cases the
broker-dealer may be tempted to include mark-ups or
mark-downs in excess of the usual brokerage fee or the
prevailing market price, especially where unsophisticated investors are involved.
In the Board's view, however, this potential abuse
does not appear to be serious enough to warrant
disapproval. Enforcement decisions of the SEC and
the NASD's Rules of Fair Practice, which apply to
Company, prohibit a broker-dealer from entering into
any transaction that is not reasonably related to the
current market price of the security. 34
In sum, the record shows that consummation of this
proposal is not likely to result in any significant undue
concentration of resources, decreased or unfair competition, conflicts of interest, unsound banking practices, or other adverse effects.
Based on the foregoing and other facts of record, the
Board has determined that the balance of public interest factors that it must consider under section 4(c)(8)
of the BHC Act is favorable. Accordingly, the Board
has determined that the application should be, and
hereby is, approved. This determination is further
subject to all of the conditions set forth in this Order,
as well as the Board's 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 activ-
34. Duker & Duker, 6 S.E.C. 386, 388-89 (1939); N A S D Rules of
Fair Practice, Art. Ill, § 4. The N A S D rules establish a guideline of 5
percent over the market price in determining if a mark-up is excessive.
836 Federal Reserve Bulletin • December 1989
ities of a bank 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 N e w
York, pursuant to delegated authority.
By order of the Board of Governors, effective
October 30, 1989.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, and La Ware. Absent and not voting:
Governor Kelley.
JENNIFER J. JOHNSON
Associate
Secretary
of the Board
Orders Issued Under Sections 3 and 4 of the
Bank Holding Company Act
First of America Bank Corporation
Kalamazoo, Michigan
Order Approving
Companies
Merger of Bank
Holding
First of America Bank Corporation, Kalamazoo,
Michigan ("First of America") and First of America
Bancorporation-Illinois, Inc., Kalamazoo, Michigan
("FOAB"), bank holding companies within the meaning of the Bank Holding Company Act ("BHC Act"),
have applied for the Board's approval under section 3
of the BHC Act (12 U.S.C. § 1842), to acquire Midwest Financial Group, Inc., Peoria, Illinois ("Midwest"), and thereby acquire its banking and nonbanking subsidiaries. 1
First of America and FOAB also have applied for
the Board's approval under section 4(c)(8) of the BHC
Act to acquire the nonbanking subsidiaries of
Midwest. 2
1. First of America proposes to merge Midwest into FOAB, and
thereby acquire Midwest's subsidiaries. Upon the acquisition of
Midwest, First of America will acquire the following banks: BancMidwest McLean County, N . A . , Bloomington, Illinois; The First National Bank in Champaign, Champaign, Illinois; The Citizens National
Bank of Decatur, Decatur, Illinois; The DeKalb Bank N . A . , DeKalb,
Illinois; The First Trust Bank N . A . , Kankakee, Illinois; Commercial
National Bank of Peoria, Peoria, Illinois; United Bank of Illinois,
N . A . , Rockford, Illinois; and The Illinois National Bank of Springfield, Springfield, Illinois.
In connection with this application, First of America and FOAB
also have applied to acquire warrants representing up to 23.9 percent
of the voting shares of Midwest if certain preconditions occur.
2. First of America proposes to acquire Midwest Financial Mortgage Company, Peoria, Illinois, and thereby engage in marketing and
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (54 Federal Register 27,426 (1989)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in sections 3(c)
and 4(c)(8) of the BHC Act.
First of America operates 42 banking subsidiaries
located in Michigan, Indiana, and Illinois. Midwest
operates eight banking subsidiaries, all of which are
located in Illinois. First of America is the eleventh
largest banking organization in Illinois, controlling
deposits of $1.2 billion, representing approximately
1.1 percent of the total deposits in commercial banking
organizations in the state. 3 Midwest is the seventh
largest banking organization in Illinois, controlling
deposits of $1.9 billion, representing approximately
1.7 percent of the total deposits in commercial banking
organizations in the state. Upon consummation of this
proposal, First of America would become the fifth
largest banking organization in Illinois, controlling
deposits of $3.1 billion, representing approximately
2.8 percent of the total deposits in commercial banking
organizations in the state. Consummation of this proposal would not have a significant adverse effect on the
concentration of banking resources in the state.
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 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." 4 The Illinois Bank
Holding Company Act permits the acquisition of Illinois banks and bank holding companies by banking
institutions located in Michigan (111. Ann. Stat. ch. 17,
para. 2501), and the Board has determined previously
that a Michigan bank holding company may acquire a
bank holding company in Illinois. 5 Accordingly, con-
servicing loans secured by mortgages on real estate; Midwest Financial Investment Management Company, Peoria, Illinois, and thereby
provide portfolio investment advice, furnishing general economic
information and advice, general economic statistical forecasting services, and industry studies; Midwest Financial Life Insurance Company, Peoria, Illinois, and thereby engage in underwriting as reinsurer, credit life, credit accident, and health insurance directly related
to extensions of credit by First of America's subsidiary banks; and
Midwest Financial Group Brokerage Services, Inc., Peoria, Illinois,
and thereby engage in securities brokerage activities. These activities
are authorized for bank holding companies pursuant to the Board's
Regulation Y, 12 C.F.R. 225.25(b)(1), (4), (8)(i), and (15).
3. Deposit data are as of June 30, 1987.
4. 12 U . S . C . § 1842(d).
5. First
of America
175 (1987).
Corporation,
73 FEDERAL RESERVE BULLETIN
Legal Developments
summation of this proposal is not barred by the
Douglas Amendment.
First of America and Midwest compete in the Peoria, Kankakee, and Rockford banking markets, all in
Illinois. In the Peoria banking market, 6 First of America is the eighth largest commercial banking organization in the market controlling deposits of $72.6 million,
representing 3.6 percent of the total deposits in commercial banking organizations in the market. Midwest
is the largest commercial banking organization in the
Peoria banking market, controlling deposits of $541.3
million, representing 26.7 percent of the total deposits
in commercial banking organizations in the market.
Upon consummation of this transaction, First of
America would become the largest commercial banking organization in the Peoria banking market, controlling deposits of $613.9 million, representing 30.3 percent of the total deposits in commercial banking
organizations in the market. The four-firm concentration ratio would increase by 3.6 percentage points to
59.3 percent, and the Herfindahl-Hirschman Index
("HHI") would increase by 192 points to 1319.7
In the Rockford banking market,8 First of America
is the fourth largest commercial banking organization
controlling deposits of $194.6 million, representing 9.5
percent of the total deposits in commercial banking
organizations in the market. Midwest is the third
largest commercial banking organization in the Rockford banking market, controlling deposits of $265.3
million, representing 13.0 percent of the total deposits
in commercial banking organizations in the market.
Upon consummation of this transaction, First of
America would become the third largest commercial
banking organization in the Rockford banking market,
controlling deposits of $459.9 million, representing
22.5 percent of the total deposits in commercial banking organizations in the market. The four-firm concentration ratio would increase by 4.2 percentage points
6. The Peoria banking market is defined as Peoria and Tazewell
Counties, plus Woodford County excluding Kansas, El Paso, Panola,
and Minonk Townships, all in Illinois.
7. Under the revised Department of Justice Merger Guidelines,
49 Federal Register 26,823 (1984), a market in which the post-merger
HHI is between 1000 and 1800 is considered moderately concentrated.
In such markets, the Department of Justice is unlikely to challenge a
merger or acquisition if the increase in HHI is less than 100 points.
The Department of Justice 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 or acquisition increases the HHI by at
least 200 points. The Department of Justice 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.
8. The Rockford banking market is defined as Winnebago and
Boone Counties, plus Byron, Marion, Scott, and Monroe Townships
in Ogle County, all in Illinois.
837
to 82.6 percent, and the HHI would increase by 247
points to 2170.
In the Kankakee banking market, 9 First of America
is the second largest commercial banking organization,
controlling deposits of $145.1 million, representing
23.8 percent of the total deposits in commercial banking organizations in the market. Midwest is the largest
commercial banking organization in the Kankakee
banking market, controlling deposits of $165.2 million,
representing 27.1 percent of the total deposits in
commercial banking organizations in the market.
Upon consummation of this transaction, First of
America would become the largest commercial banking organization in the Kankakee banking market,
controlling deposits of $310.3 million, representing
50.9 percent of the total deposits in commercial banking organizations in the market. The four-firm concentration ratio would increase by 5.7 percentage points
to 74.2 percent, and the HHI would increase by 1290
points to 2867.
Although consummation of this proposal would
eliminate some existing competition between First of
America and Midwest in the Rockford and Kankakee
banking markets, numerous other commercial banks
would continue to operate in each market after consummation of this proposal. 10 In addition, the Board
has considered the presence of thrift institutions in
these banking markets in its analysis of this proposal. 11
These institutions account for a significant percentage
of the total deposits in each market. 12 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 Rockford and Kankakee banking markets. 13
9. The Kankakee banking market is approximated by Kankakee
County except for Essex Township, plus Milks Grove, Chebanse,
Papineau, and Beaverville Townships in Iroquois County, all in
Illinois.
10. Upon consummation of this transaction, 14 commercial banking
organizations will remain in both the Rockford and Kankakee banking
markets.
11. See National
City
Corporation,
TIN 743 (1984); The Chase
7 0 FEDERAL RESERVE BULLE-
Manhattan
RESERVE BULLETIN 5 2 9 ( 1 9 8 4 ) ; NCNB
Corporation,
Bancorporation,
70 FEDERAL
7 0 FEDERAL
RESERVE BULLETIN 225 (1984); General Bancshares Corporation, 69
FEDERAL RESERVE BULLETIN 802 (1983); First Tennessee
Corporation,
6 9 FEDERAL RESERVE BULLETIN 2 9 8 ( 1 9 8 3 ) .
12. Nine thrift institutions that control 35.4 percent of the combined
deposits of banks and thrifts operate in the Rockford banking market.
Five thrift institutions that control 41.2 percent of the combined
deposits of banks and thrifts operate in the Kankakee banking market.
13. If 50 percent of deposits held by thrift institutions in the
Rockford banking market were included in the calculation of market
concentration, First of America's pro forma market share would be
18.6 percent. The four-firm concentration ratio would increase by 6.9
percentage points to 71.5 percent, and the HHI would increase by 169
points to 1547.
If 50 percent of deposits held by thrift institutions in the Kankakee
banking market were included in the calculation of market concentra-
838 Federal Reserve Bulletin • December 1989
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 competition in the Peoria, Rockford, and
Kankakee banking markets. 14
The financial and managerial resources of First of
America, Midwest, and their subsidiaries are consistent with approval. Considerations relating to the
convenience and needs of the communities to be
served by First of America's and Midwest's subsidiary
banks are also consistent with approval.
First of America also has applied, pursuant to section
4(c)(8) of the BHC Act, to acquire certain nonbanking
subsidiaries of Midwest. First of America operates mortgage banking, investment advisory services, credit-related
insurance underwriting, and securities brokerage subsidiaries that directly compete with Midwest and its subsidiaries in these activities. Each of these subsidiaries has a
small market share and there are numerous competitors
for these services. Accordingly, consummation of this
proposal would have a de minimis effect on existing
competition in each of these markets, and the Board
concludes that the proposal would not have any significantly adverse effect on competition in the provision of
these services in any relevant market. Furthermore, there
is no evidence in the record to indicate that approval of
tion, First of America's pro forma market share would be 37.7
percent. The four-firm concentration ratio would increase by 7.3
percentage points to 63.8 percent, and the HHI would increase by 708
points to 1780.
14. The Board received an untimely comment from an individual
asserting that First of America's acquisition of Midwest would substantially lessen competition in the Kankakee banking market. In light
of the factors discussed above, the allegations raised in the protest do
not warrant denial of this application.
APPLICATIONS
APPROVED
UNDER BANK
HOLDING
this proposal would result in undue concentration of
resources, decreased or unfair competition, conflicts of
interests, unsound banking practices, or other adverse
effects on the public interest. Accordingly, the Board 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 First of America's application to acquire the nonbanking subsidiaries of
Midwest.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be, and
hereby are, 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. The determinations as to First of America's
nonbanking activities are subject to all of the conditions
contained in Regulation Y, including those in sections
225.4(d) and 225.23(b)(3) (12 C.F.R. 225.4(d) and
225.23(b)(3)), and to the Board's authority to require such
modification or termination of the activities of a holding
company or any of its subsidiaries as the Board finds
necessary to assure compliance with the provisions and
purposes of the 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 2, 1989.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Kelley, and LaWare.
JENNIFER J. JOHNSON
Associate
COMPANY
Secretary
of the Board
ACT
By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon
request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Applicant
First Chicago Corporation,
Chicago, Illinois
First Chicago Corporation
Chicago, Illinois
Bank(s)
FCBAH Bank,
Arlington Heights, Illinois
Ravenswood Financial Corporation,
Chicago, Illinois
Effective date
September 29, 1989
September 29, 1989
Legal Developments
839
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon
request to the Reserve Banks.
Section 3
Applicant
Alexis Bancorp, Inc.,
Carol Stream, Illinois
Amarillo Delaware Bancorp,
Inc.,
Wilmington, Delaware
Bainum Bancorp II,
Murfreesboro, Arkansas
BancFirst Corp.,
Zanesville, Ohio
Bancook Corporation,
Cook, Nebraska
The Boston Bank of Commerce
Employee Stock Ownership
Trust,
Boston, Massachusetts
Citizens Bancshares, Inc.,
Salineville, Ohio
The Citizens and Southern
Corporation,
Atlanta, Georgia
Citrus Financial Services
Corporation,
Vero Beach, Florida
Clarke, Inc.,
Central City, Nebraska
Crosswhite Bankshares, Inc.,
Denver, Colorado
Farmers State Bankshares, Inc.,
Circle ville, Kansas
Far West Bancorporation,
Provo, Utah
Fayette County Bancshares, Inc.,
Peachtree City, Georgia
FDH Bancshares, Inc.,
Little Rock, Arkansas
1st AmBanc, Inc.,
Destin, Florida
Bank(s)
Reserve
Bank
Effective
date
The Bank of Alexis,
Alexis, Illinois
Amarillo National Bank,
Amarillo, Texas
Chicago
October 16, 1989
Dallas
October 12, 1989
Pike County Bank,
Murfreesboro, Arkansas
The First National Bank of
Zanesville,
Zanesville, Ohio
Farmers Bank,
Prairie Home, Nebraska
The Boston Bank of Commerce,
Boston, Massachusetts
St. Louis
September 21, 1989
Cleveland
October 12, 1989
Kansas City
September 29, 1989
Boston
October 3, 1989
The First National Bank of
Chester,
Chester, West Virginia
The Ocean State Bank,
Neptune Beach, Florida
Cleveland
October 17, 1989
Atlanta
October 23, 1989
Atlanta
September 21, 1989
Kansas City
October 12, 1989
Kansas City
September 20, 1989
Kansas City
October 20, 1989
San Francisco
October 12, 1989
Atlanta
September 19, 1989
St. Louis
September 20, 1989
Atlanta
October 23, 1989
Citrus Bank, National
Association,
Vero Beach, Florida
Midlands Bancorp, Inc.,
Papillion, Nebraska
Rocky Ford National Bank,
Rocky Ford, Colorado
The Farmers State Bank,
Circle ville, Kansas
Far West Bank,
Provo, Utah
Fayette County Bank,
Peachtree City, Georgia
First State Bank of Fordyce,
Fordyce, Arkansas
Citizens First State Bank,
Arkadelphia, Arkansas
1st American Bank of Walton
County,
Destin, Florida
840 Federal Reserve Bulletin • December 1989
Section 3—Continued
Applicant
First Community Bancorp, Inc.,
Cartersville, Georgia
First Eagle Bancshares, Inc.,
Roselle, Illinois
The First National Bankshares of
Henry County, Inc.,
Stockbridge, Georgia
F & M National Corporation,
Winchester, Virginia
Franklin State Bancshares, Inc.,
Franklin, Nebraska
GNB Bancshares, Inc.,
Gainesville, Texas
Guaranty National Bancshares,
Inc.,
Wilmington, Delaware
Green Top, Inc.,
Central City, Nebraska
Shelby Insurance, Inc.,
Central City, Nebraska
Growth Financial Corporation,
Basking Ridge, New Jersey
Illinois Valley Bancshares, Inc.,
Elmhurst, Illinois
InterCounty Bancshares, Inc.,
Employee Stock Ownership
Plan,
Wilmington, Ohio
Investors Financial Corporation,
Sedalia, Missouri
Lincoln Holding Company,
Hankinson, North Dakota
Livingston & Company
Southwest, L.P.,
Chicago, Illinois
Livingston Southwest
Corporation,
Chicago , Illinois
Marseilles Bancorporation, Inc.,
Marseilles, Illinois
Bank(s)
Reserve
Bank
Effective
date
Atlanta
October 20, 1989
Chicago
October 13, 1989
Atlanta
October 5, 1989
Richmond
October 11, 1989
Kansas City
October 18, 1989
Dallas
September 26, 1989
Bank of the Midlands,
Papillion, Nebraska
Kansas City
October 12, 1989
Growth Bank,
Basking Ridge, New Jersey
Colonial Trust & Savings Bank,
Peru, Illinois
Illinois Regional Bank, Bureau
County,
Princeton, Illinois
InterCounty Bancshares, Inc.,
Wilmington, Ohio
New York
October 4, 1989
Chicago
October 11, 1989
Cleveland
October 12, 1989
Community Bank of Pettis
County,
Sedalia, Missouri
Lincoln State Bank,
Hankinson, North Dakota
First National Bank of North
County,
Carlsbad, California
Kansas City
October 13, 1989
Minneapolis
October 16, 1989
Kansas City
October 19, 1989
Union National Bank of
Marseilles,
Marseilles, Illinois
Chicago
October 6, 1989
First Community Bank & Trust,
Cartersville, Georgia
First National Bank of Roselle,
Roselle, Illinois
The First National Bank of
Henry County,
Stockbridge, Georgia
The First National Bank of
Broadway,
Broadway, Virginia
Franklin State Bank,
Franklin, Nebraska
Gainesville National Bank,
Gainesville, Texas
Legal Developments
841
Section 3—Continued
Applicant
M.O.I. Inc.,
Janesville, Wisconsin
New East Bancorp,
Raleigh, North Carolina
New East Bancorp,
Raleigh, North Carolina
Ocean State Bancshares,
Middletown, Rhode Island
OMNIBANCORP,
Denver, Colorado
The Plains Corporation,
Wilmington, Delaware
P.N.B. Financial Corporation,
Kingfisher, Oklahoma
Prairie State Bancorp, Inc.,
Danforth, Illinois
PSB Financial Shares, Inc.,
Prinsburg, Minnesota
River Forest Bancorp, Inc.,
Chicago , Illinois
Rodgers Family Bancshares,
Inc.,
Waldron, Arkansas
South Holt Bancshares, Inc.,
Oregon, Missouri
Spearman Bancshares, Inc.,
Spearman, Texas
Stearns Financial Services, Inc.
Albany, Minnesota
The Summit Bancorporation,
Summit, New Jersey
Terre Du Lac Bancshares, Inc.,
St. Louis, Missouri
Bank(s)
State Bank of Mount Horeb,
Mount Horeb, Wisconsin
State Bank of Argyle,
Argyle, Wisconsin
New East Bank of Fayetteville,
Fayetteville, North Carolina
New East Bank of Greenville,
Greenville, North Carolina
Ocean State National Bank,
Middletown, Rhode Island
OMNIBANK Denver,
Denver, Colorado
The Plains Corporation,
Lubbock, Texas
Plains National Bank of
Lubbock,
Lubbock, Texas
The First National Bank of
Hennessey,
Hennessey, Oklahoma
Farmers State Bank of Danforth,
Danforth, Illinois
Prinsburg State Bank,
Prinsburg, Minnesota
Calumet City Bancorp, Inc.,
Calumet City, Illinois
Bank of Waldron,
Waldron, Arkansas
Zook and Roecker State Bank,
Oregon, Missouri
First National Bank,
Spearman, Texas
Stearns Agency, Inc.,
Albany, Minnesota
Financial Services of Evansville,
Inc.,
Evansville, Minnesota
Security State Bank of
Holdingford,
Holdingford, Minnesota
Farmers State Bank of Upsala,
Upsala, Minnesota
Growth Financial Corporation,
Basking Ridge, New Jersey
First National Bank of Callaway
County,
Fulton, Missouri
Reserve
Bank
Effective
date
Chicago
October 6, 1989
Richmond
October 18, 1989
Richmond
October 11, 1989
Boston
September 22, 1989
Kansas City
September 20, 1989
Dallas
October 16, 1989
Kansas City
October 10, 1989
Chicago
September 27, 1989
Minneapolis
October 19, 1989
Chicago
October 17, 1989
St. Louis
September 29, 1989
Kansas City
September 22, 1989
Dallas
October 26, 1989
Minneapolis
October 2, 1989
New York
October 4, 1989
St. Louis
October 5, 1989
842 Federal Reserve Bulletin • December 1989
Section 3—Continued
Applicant
Tomball National BancShares,
Inc.,
Tomball, Texas
Tomball Capital Corporation,
Wilmington, Delaware
Tulsa National Bancshares, Inc.,
Tulsa, Oklahoma
Union Planters Corporation,
Memphis, Tennessee
Union Planters Corporation,
Memphis, Tennessee
Union Planters Corporation,
Memphis, Tennessee
United Nebraska Financial Co.,
Ord, Nebraska
WB&T Bancshares, Inc.,
Way cross, Georgia
West-Ark Bancshares, Inc.,
Clarksville, Arkansas
West Jersey Bancshares, Inc.,
Fairfield, New Jersey
Bank(s)
Reserve
Bank
Effective
date
Tomball National Bank,
Tomball, Texas
Dallas
October 20, 1989
Tulsa National Bank,
Tulsa, Oklahoma
Citizens Bank & Trust Company,
Wartburg, Tennessee
National Commerce Corporation,
New Albany, Mississippi
Steiner Bank,
Birmingham, Alabama
Labanco, Inc.,
Burwell, Nebraska
Burwell Insurance Agency, Inc.,
Burwell, Nebraska
Way cross Bank & Trust,
Waycross, Georgia
Arkansas State Bank,
Clarksville, Arkansas
West Jersey Community Bank,
Fairfield, New Jersey
Kansas City
September 29, 1989
St. Louis
September 22, 1989
St. Louis
September 22, 1989
St. Louis
October 6, 1989
Kansas City
October 5, 1989
Atlanta
October 25, 1989
St. Louis
October 3, 1989
New York
October 25, 1989
Section 4
Applicant
Algemene Bank Nederland,
N.V.,
Amsterdam, The Netherlands
A.B.N.-Stichting,
Amsterdam, The Netherlands
Banc One Corporation,
Columbus, Ohio
Draper Holding Company,
Draper, South Dakota
MNC Financial, Inc.,
Baltimore, Maryland
Mount Sterling National Holding
Corporation,
Mount Sterling, Kentucky
Northern Trust Corporation,
Chicago, Illinois
Northern Trust Corporation,
Chicago, Illinois
Nonbanking
Activity/Company
Reserve
Bank
Effective
date
ABN Capital Markets
Corporation,
New York, New York
Chicago
October 5, 1989
Weaver Bros., Inc.,
Chevy Chase, Maryland
Dave Moore Insurance Agency,
Vivian, South Dakota
Royal Credit Corporation,
Spartanburg, South Carolina
Home Towne Loan Company,
Inc.,
Stanton, Kentucky
Berry, Hartell & Evers,
San Francisco, California
Northern Trust Brokerage, Inc.,
Chicago, Illinois
Cleveland
September 22, 1989
Minneapolis
September 28, 1989
Richmond
October 25, 1989
Cleveland
September 29, 1989
Chicago
September 22, 1989
Chicago
October 5, 1989
Legal Developments
843
Section 4—Continued
Nonbanking
Activity/Company
Applicant
Norwest Corporation,
Minneapolis, Minnesota
Union Planters Corporation,
Memphis, Tennessee
Saffer Insurance Services, Inc.,
Lincoln, Nebraska
GulfNet, Inc.,
Mandeville, Louisiana
Reserve
Bank
Effective
date
Minneapolis
October 11, 1989
St. Louis
September 22, 1989
Sections 3 and 4
Bank(s)/Nonbanking
Company
Applicant
Fifth Third Bancorp,
Cincinnati, Ohio
Johnson International Bancorp,
Ltd.,
Racine, Wisconsin
Plainview Bankshares, Inc.,
Plain view, Minnesota
ValliCorp Holdings, Inc.,
Fresno, California
APPLICATIONS
APPROVED
First Ohio Bancshares, Inc.,
Toledo, Ohio
Biltmore Bank Corp.,
Phoenix, Arizona
Johnson Asset Management,
Inc.,
Milwaukee, Wisconsin
Johnson Investment S.A.,
Zug, Switzerland
First National Bank,
Plainview, Minnesota
Bank of Fresno,
Fresno, California
Merced Bank of Commerce,
N.A.,
Merced, California
Western Commercial Leasing
Company,
Fresno, California
UNDER BANK MERGER
Reserve
Bank
Effective
date
Cleveland
October 26, 1989
San Francisco
September 27, 1989
Minneapolis
October 16, 1989
San Francisco
October 20, 1989
ACT
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon
request to the Reserve Banks.
.
Applicant
Central Savings Bank,
Sault St. Marie, Michigan
, , ,
Bank(s)
n
First of America Bank - Northern
Michigan,
Cheboygan, Michigan
Reserve
,
Bank
Minneapolis
Effective
date
October 3, 1989
844
Federal Reserve Bulletin • December 1989
Chemical Bank and Trust
Company,
Midland, Michigan
Comerica Bank-Detroit,
Detroit, Michigan
Heartland Bank,
Croton, Ohio
Victoria Bank & Trust Company,
Victoria, Texas
PENDING CASES INVOLVING
Effective
date
Chemical Bank Bay Area,
Bay City, Michigan
Chicago
October 17, 1989
Dearborn Bank and Trust
Company,
Dearborn, Michigan
Lyndon Guaranty Bank of Ohio,
Columbus, Ohio
The Jackson County State Bank,
Edna, Texas
Bank of Commerce Calhoun
County,
Point Comfort, Texas
Chicago
September 21, 1989
Cleveland
October 23, 1989
Dallas
September 25, 1989
THE BOARD OF
GOVERNORS
This list of pending cases does not include suits against
Governors is not named as a party.
Consolidated Bancorp v. Board of Governors, No.
W-89-CA251 (W.D. Tex., filed September 8, 1989);
Consolidated Bancorp v. Board of Governors, Adversary Proceeding No. 89-6081 (Bankr. W.D.
Tex., filed September 15, 1989).
Synovus Financial Corp. v. Board of Governors, No.
89-1394 (D.C. Cir., filed June 21, 1989).
MCorp v. Board of Governors, No. 89-2816 (5th Cir.,
filed May 2, 1989).
Whitney v. Board of Governors, et al., No. 89-1263
(5th Cir., filed March 22, 1989).
Independent Insurance Agents of America, Inc. v.
Board of Governors, No. 89-4030 (2d Cir., filed
March 9, 1989).
Securities Industry Association
v. Board of Governors, No. 89-1127 (D.C. Cir., filed February 16,
1989).
Reserve
Bank
Bank(s)
Applicant
the Federal Reserve
Banks in which the Board
of
American Land Title Association v. Board of Governors,
No. 88-1872 (D.C. Cir., filed December 16, 1988).
MCorp v. Board of Governors, No. CA3-88-2693-F
(N.D. Tex., filed October 28, 1988).
White v. Board of Governors, N o . CU-S-88-623-RDF
(D. Nev., filed July 29, 1988).
Baugh v. Board of Governors, No. C88-3037 (N.D.
Iowa, filed April 8, 1988).
Bonilla v. Board of Governors, No. 88-1464 (7th Cir.,
filed March 11, 1988).
Cohen v. Board of Governors, No. 88-1061 (D.N.J.,
filed March 7, 1988).
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).
First Savings Bank v. Federal Reserve System, et al.,
No. 89-4117, (D.S.D., filed August 31, 1989).
A1
Financial and Business Statistics
NOTE. The following tables may have some
discontinuities in historical data for some series
beginning with the March 1989 issue: 1.10, 1.17,
1.20, 1.21, 1.22, 1.23, 1.24, 1.25, 1.26, 1.28, 1.30,
1.31, 1.32, 1.35, 1.36, 1.37, 1.39, 1.40, 1.41, 1.42,
1.43, 1.45, 1.46, 1.47, 1.48, 1.50, 1.53, 1.54, 1.55,
1.56, 2.11, 2.14, 2.15, 2.16, 2.17, 3.14, and 3.21.
For a more detailed explanation of the changes,
see the announcement on pages 288-89 of the
April 1989 BULLETIN.
CONTENTS
WEEKLY REPORTING COMMERCIAL
Domestic Financial
Statistics
MONEY STOCK AND BANK
CREDIT
A3 Reserves, money stock, liquid assets, and debt
measures
A4 Reserves of depository institutions, Reserve
Bank credit
A5 Reserves and borrowings—Depository
institutions
A6 Selected borrowings in immediately available
funds—Large member banks
POLICY
INSTRUMENTS
A7 Federal Reserve Bank interest rates
A8 Reserve requirements of depository institutions
A9 Federal Reserve open market transactions
FEDERAL RESERVE
BANKS
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
A10 Condition and Federal Reserve note statements
A l l Maturity distribution of loan and security
holdings
FEDERAL
MONETARY
AND CREDIT
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
All Major nondeposit funds
A18 Assets and liabilities, last-Wednesday-of-month
series
FINANCE
AGGREGATES
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
2 Federal Reserve Bulletin • December 1989
SECURITIES MARKETS AND
CORPORATE
FINANCE
A34 N e w security issues—State and local
governments and corporations
A35 Open-end investment companies—Net sales
and asset position
A35 Corporate profits and their distribution
A35 Total nonfarm business expenditures on new
plant and equipment
A36 Domestic finance companies—Assets and
liabilities and business credit
REAL
ESTATE
A37 Mortgage markets
A38 Mortgage debt outstanding
CONSUMER INSTALLMENT
CREDIT
A56 Foreign official assets held at Federal Reserve
Banks
A57 Foreign branches of U.S. banks—Balance
sheet data
A59 Selected U.S. liabilities to foreign official
institutions
REPORTED BY BANKS
IN THE UNITED
STATES
A59
A60
A62
A63
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A63 Banks' own claims on unaffiliated foreigners
A64 Claims on foreign countries—Combined
domestic offices and foreign branches
A39 Total outstanding and net change
A40 Terms
REPORTED BY NONBANKING
ENTERPRISES IN THE UNITED
FLOW OF FUNDS
A41 Funds raised in U.S. credit markets
A43 Direct and indirect sources of funds to credit
markets
A44 Summary of credit market debt outstanding
A45 Summary of credit market claims, by holder
A65 Liabilities to unaffiliated foreigners
A66 Claims on unaffiliated foreigners
SECURITIES
Domestic
Nonfinancial
SELECTED
MEASURES
Statistics
A46 Nonfinancial business activity—Selected
measures
A47 Labor force, employment, and unemployment
A48 Output, capacity, and capacity utilization
A49 Industrial production—Indexes and gross value
A51 Housing and construction
A52 Consumer and producer prices
A53 Gross national product and income
A54 Personal income and saving
International
SUMMARY
Statistics
BUSINESS
STATES
HOLDINGS
AND
TRANSACTIONS
A67 Foreign transactions in securities
A68 Marketable U.S. Treasury bonds and
notes—Foreign transactions
INTEREST
AND EXCHANGE
RATES
A69 Discount rates of foreign central banks
A69 Foreign short-term interest rates
A70 Foreign exchange rates
A71 Guide to Tabular
Presentation,
Statistical Releases, and Special
Tables
STATISTICS
A55 U.S. international transactions—Summary
A56 U.S. foreign trade
A56 U.S. reserve assets
SPECIAL
All
TABLE
Assets and liabilities of commercial banks,
March 31, 1989
Money Stock and Bank Credit
A3
1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Annual rates of change, seasonally adjusted in percent 1
1988
1989
1989
Monetary and credit aggregates
Q4
Q1
Q2
-.8
-1.5
5.3
4.8
-4.2
-4.4
.0
4.6
-8.7
-7.6
-10.2
1.5
2.3
3.6
4.8
5.5
8.9
-.4
1.8
3.7
5.0r
8.4
4.1
9.3
May
June
July
Aug.'
Sept.
.2
.1
8.2
3.0
-14.6
-20.0
-3.2
-1.5
-8.0
-5.5
-3.4
3.1
7.2
6.0
24.2
4.0
1.1
2.8
1.5
1.3
8.6
8.6
8.3
7.2
-5.6
1.2
2.9
4.7'
7.6
1.7
7.3
4.7
n.a.
7.4
-15.1
-3.3
-1.2
-1.0'
7.3
-4.6'
6.2
5.7
3.3'
6.5
10.9
11.5
9.0
8.9'
6.1'
.7
7.2
2.2
5.1
9.3
5.9
7.5
.8
n.a.
n.a.
2.6
10.6r
3.5
9.2
9.2
-4.4
.6'
6.3
9.8'
4.0
11.7
.1'
9.4
-15.6
8.1
-23.1
4.0
18.0
13.0
-3.7
22.5
18.1
-14.2
29.0
17.7
-.1
10.6
1.8
-20.5'
28.4'
10.0
-6.6
12.0
1.8
3.5
7.5
3.8'
7.4
7.8
-1.9
8.0
5.0
-5.1
-2.5
6.6
8.0
-7.7
4.3
1.2
-19.0
14.1
5.9
-6.9
9.5
-9.7
-26.3
22.5
8.0
-9.1
15.4
1.9
-2.0
4.0
-22.3
3.8
-3.3
-29.6
7.6
9.2
7.7
8.6
6.9
7.8
5.4
8.0
4.2
8.3
4.3
7.2
Q3
2
1
2
3
4
Reserves of depository institutions
Total
Required
Nonborrowed
Monetary base 3
5
6
7
8
9
Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt
Nontransaction components
10 In M2
11 In M3 only6
Time and savings deposits
Commercial banks
Savings
Small-denomination time8
Large-denomination time 9,10
Thrift institutions
15 Savings
16 Small-denomination time
17 Large-denomination time9
12
13
14
Debt components4
18 Federal
19 Nonfederal
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter.
2. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
3. The monetary base not adjusted for discontinuities consists of total
reserves plus required clearing balances and adjustments to compensate for float
at Federal Reserve Banks plus the currency component of the money stock less
the amount of vault cash holdings of thrift institutions that is included in the
currency component of the money stock plus, for institutions not having required
reserve balances, the excess of current vault cash over the amount applied to
satisfy current reserve requirements. After the introduction of contemporaneous
reserve requirements (CRR), currency and vault cash figures are measured over
the weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock plus the remaining items seasonally
adjusted as a whole.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of depository institutions; (2) travelers checks of nonbank issuers; (3) demand
deposits at all commercial banks other than those due to depository institutions,
the U.S. government, and foreign banks and official institutions less cash items in
the process of collection and Federal Reserve float; and (4) other checkable
deposits (OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at 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
-5.6
9.2
-8.4
.1'
7.9'
11.0
8.8
n.a.
n.a.
institutions and money market funds. Also excludes all balances held by U.S.
commercial banks, money market funds (general purpose and broker-dealer),
foreign governments and commercial banks, and the U.S. government.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted
is the estimated amount of overnight RPs and Eurodollars held by institution-only
money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are based on monthly averages. Growth rates for debt reflect adjustments for
discontinuities over time in the levels of debt presented in other tables.
5. Sum of overnight RPs and Eurodollars, money market fund balances
(general purpose and broker-dealer), MMDAs, and savings and small time
deposits less the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposit liabilities.
6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents,
money market fund balances (institution-only), less a consolidation adjustment
that represents the estimated amount of overnight RPs and Eurodollars held by
institution-only money market mutual funds.
7. Excludes MMDAs.
8. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All IRA and Keogh accounts at commercial
banks and thrifts are subtracted from small time deposits.
9. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
10. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
A4
DomesticNonfinancialStatistics • December 1989
1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT
M i l l i o n s o f dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week ending
1989
1989
Factors
July
Aug.
Sept.
Aug. 16
Aug. 23
Aug. 30
Sept. 6
Sept. 13
Sept. 20
262,096
259,232
261,299
260,064
257,673
258,726
258,278
259,729
261,949
263,247
222,972
222,812
160
6,674
6,637
37
0
685
742
31,024
11,066
8,518
19,245
218,753
218,753
0
6,609
6,609
0
0
685
568
32,619
11,066
8,518
19,318
219,475
219,018
457
6,762
6,562
200
0
636
879
33,546
11,066
8,518
19,391
219,174
219,174
0
6,609
6,609
0
0
580
687
33,013
11,066
8,518
19,314
217,744
217,744
0
6,609
6,609
0
0
925
424
31,972
11,066
8,518
19,324
218,682
218,682
0
6,609
6,609
0
0
563
410
32,462
11,066
8,518
19,334
218,414
218,414
0
6,593
6,593
0
0
512
979
31,780
11,066
8,518
19,344
219,051
219,051
0
6,555
6,555
0
0
480
592
33,049
11,066
8,518
19,354
219,444
218,362
1,082
6,810
6,555
255
0
746
1,007
33,940
11,066
8,518
19,372
219,798
219,099
699
7,014
6,555
459
0
818
1,118
34,498
11,065
8,518
19,386
249,824
466
249,102
429
248,937
431
249,831
431
248,984
426
248,011
422
249,634
423
250,214
424
248,808
435
247,601
436
6,067
229
5,437
250
7,679
257
5,747
282
4,662
243
5,680
208
4,819
251
4,549
270
6,486
243
12,316
236
1,970
262
1,889
314
1,846
351
1,896
261
1,859
273
1,845
528
1,823
306
1,769
272
1,914
419
1,835
412
Sept. 27
SUPPLYING R E S E R V E F U N D S
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 R E S E R V E F U N D S
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
8,029
7,948
7,572
7,766
7,667
7,687
7,077
7,378
7,619
7,743
34,085
32,765
33,201
32,748
32,467
33,262
32,873
33,793
34,980
31,637
Sept. 27
End-of-month figures
Wednesday figures
1989
1989
July
Aug.
Sept.
Aug. 16
Aug. 23
Aug. 30
Sept. 6
Sept. 13
Sept. 20
23 Reserve Bank credit
259,145
256,914
264,137
259,473
261,421
256,932
259,462
260,727
272,423
263,276
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
218,676
218,676
0
6,609
6,609
0
0
594
351
32,915
11,066
8,518
19,309
217,409
217,409
0
6,609
6,609
0
0
541
634
31,722
11,066
8,518
19,344
221,051
221,051
0
6,555
6,555
0
0
598
501
35,433
11,065
8,518
19,425
219,577
219,577
0
6,609
6,609
0
0
579
856
31,853
11,066
8,518
19,314
219,214
219,214
0
6,609
6,609
0
0
2,902
448
32,249
11,066
8,518
19,324
216,339
216,339
0
6,609
6,609
0
0
561
896
32,528
11,066
8,518
19,334
219,132
219,132
0
6,555
6,555
0
0
532
1,112
32,131
11,066
8,518
19,344
219,188
219,188
0
6,555
6,555
0
0
483
723
33,778
11,066
8,518
19,354
226,447
218,876
7,571
8,340
6,555
1,785
0
962
1,807
34,866
11,065
8,518
19,372
220,565
219,058
1,507
7,613
6,555
1,058
0
585
804
33,708
11,065
8,518
19,386
248,637
451
249,245
420
247,581
440
249,722
427
248,641
422
248,540
420
250,465
424
249,832
424
248,239
435
247,644
440
5,312
371
6,652
265
13,452
326
4,612
239
5,648
180
5,714
207
4,537
209
5,458
187
11,476
192
9,768
335
1,592
236
1,611
273
1,630
318
1,608
308
1,626
258
1,611
339
1,613
263
1,602
265
1,602
299
1,630
376
SUPPLYING RESERVE FUNDS
ABSORBING R E S E R V E F U N D S
37 Currency in circulation
38 Treasury cash holdings 2
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 3
8,693
7,063
8,776
7,467
7,487
7,465
7,096
7,488
7,636
7,659
32,747
30,313
30,623
33,990
36,067
31,555
33,784
34,409
41,499
34,392
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.
Components may not add to totals because of rounding.
Money Stock and Bank Credit
1.12 RESERVES AND BORROWINGS
A5
Depository Institutions1
Millions of dollars
Monthly averages
Reserve classification
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks
Total vault cash
Vault4
Surplus
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
37,360
24,077
22,199
1,878
59,560
58,191
1,369
827
38
303
37,673
26,185
24,449
1,736
62,123
61,094
1,029
777
93
483
37,830
27,197
25,909
1,288
63,739
62,699
1,040
1,716
130
1,244
Mar.
Apr.
May
June
July
Aug.
Sept.
34,623
27,059
25,589
1,470
60,212
59,255
957
1,813
139
1,334
35,832
26,746
25,456
1,290
61,288
60,511
776
2,289
213
1,707
33,199
27,166
25,712
1,454
58,911
57,881
1,031
1,720
345
1,197
33,852
27,151
25,735
1,416
59,587
58,681
905
1,490
431
917
33,902
27,851
26,351
1,500
60,254
59,288
966
694
497
106
32,823
28,358
26,735
1,622
59,559
58,674
885
675
490
41
33,507
28,085
26,569
1,517
60,076
59,187
888
693
452
22
Biweekly averages of daily figures for weeks ending
1989
11
12
13
14
15
16
17
18
19
20
Reserve balances with Reserve Banks2
Total vault cash
Vault4
Surplus5
Total reserves 6
Required reserves
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks
June 14
June 28
July 12
July 26
Aug. 9
Aug. 23
Sept. 6
Sept. 20
Oct. 4
Oct. 18
34,608
26,607
25,301
1,306
59,909
59,012
897
2,126
388
1,657
32,950
27,630
26,104
1,526
59,054
58,154
901
965
467
287
34,866
27,607
26,191
1,416
61,057
60,067
990
717
483
146
33,410
27,948
26,432
1,517
59,842
58,807
1,035
681
509
90
32,969
28,166
26,513
1,654
59,481
58,766
715
676
497
55
32,599
28,852
27,212
1,640
59,810
58,859
951
753
489
44
33,053
27,710
26,153
1,557
59,206
58,247
959
538
485
22
34,369'
28,095
26,660
1,436
61,028'
60,195'
833'
614
438
21
32,573
28,298
26,691
1,607
59,264
58,341
923
898
453
25
33,600
29,096
27,532
1,564
61,132
60,197
935
653
342
19
1. These data also appear in the Board's H.3 (502) release. For address, see inside front cover.
2. Excludes required clearing balances and adjustments to compensate for
float.
3. Dates refer to the maintenance periods in which the vault cash can be used
to satisfy reserve requirements. Under contemporaneous reserve requirements,
maintenance periods end 30 days after the lagged computation periods in which
the balances are held.
4. Equal to all vault cash held during the lagged computation period by
institutions having required reserve balances at Federal Reserve Banks plus the
amount of vault cash equal to required reserves during the maintenance period at
institutions having no required reserve balances.
5. Total vault cash at institutions having no required reserve balances less the
amount of vault cash equal to their required reserves during the maintenance
period.
6. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash used to satisfy reserve
requirements. Such vault cash consists of all vault cash held during the lagged
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
7. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy
reserve requirements less required reserves.
8. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
9. Data are prorated monthly averages of biweekly averages.
A6
DomesticNonfinancialStatistics • December 1989
1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS
Large Member Banks1
A v e r a g e s o f daily figures, in millions o f dollars
1988 week ending Monday
Maturity and source
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
Aug. 22
Aug. 29
Sept. 5
Sept. 12
Sept. 19
Sept. 26
Oct. 3
Oct. 10
Oct. 17
66,871
10,102
64,904
10,187
69,394
10,001
69,451
9,714
65,767
9,443
62,866
9,450
66,221
8,919
71,087
9,090
68,324
8,970
26,570
6,700
26,952
6,579
27,114
6,629
29,922
6,581
26,636
6,895
27,000
6,273
25,144
6,081
28,535
6,340
29,991
6,386
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
16,304
12,587
15,212
13,177
15,337
12,365
15,072
11,524
14,596
13,136
13,683
13,293
12,927
12,723
13,238
12,699
13,880
12,221
27,452
10,559
28,070
10,701
27,866
10,279
27,761
9,691
27,123
10,429
27,616
10,341
27,876
9,629
26,825
10,089
28,236
9,594
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 2
35,147
14,952
34,797
14,010
39,559
14,263
34,356
13,677
37,066
14,421
37,013
13,079
39,869
13,513
37,509
14,007
38,388
15,296
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 credit1
Federal Reserve
Bank
After 30 days of borrowing3
First 30 days of borrowing
On
10/26/89
Effective
date
Previous
rate
On
10/26/89
Effective
date
Previous
rate
On
10/26/89
Effective
date
Previous
rate
7
2/24/89
2/24/89
2/24/89
2/24/89
2/24/89
2/24/89
6 Vi
7
2/24/89
2/24/89
2/24/89
2/24/89
2/24/89
2/24/89
6Vi
9.20
10/19/89
10/19/89
10/19/89
10/19/89
10/19/89
10/19/89
9.50
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco . . .
7
2/24/89
2/24/89
2/24/89
2/24/89
2/27/89
2/24/89
6'/i
7
2/24/89
2/24/89
2/24/89
2/24/89
2/27/89
2/24/89
6Vi
9.20
10/19/89
10/19/89
10/19/89
10/19/89
10/19/89
10/19/89
Effective date
10/5/89
10/5/89
10/5/89
10/5/89
10/5/89
10/5/89
10/5/89
10/5/89
10/5/89
10/5/89
10/5/89
10/5/89
9.50
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—July 20
Aug. 17
20
Sept. 19
F.R.
Bank
of
N.Y.
6
6 - 6 Vi
6
6 Vi
6Vi-7
1
1
6Vi
1
IV*
V/4
7-7'/4
8
8-8 Vi
8Vi
8 Vi-9Vi
9 Vi
10
10-10'/!
10Vi
10Vi-l 1
8
11
11-12
10
12
21
Oct.
Range (or
level)—
All F.R.
Banks
1980—Feb. 15
19
May 29
30
June 13
16
12-13
13
12-13
12
11-12
11
6Vi
71/4
71/4
Effective date
10-11
12-13
13
1981—May
13-14
14
13-14
13
14
14
13
13
5
8
Nov. 2
6
Dec. 4
Vi
8Vi
9 Vi
9Vi
10
1982—July 20
23
Aug. 2
3
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17
101/2
10 Vi
11
11
12
12
13
13
13
12
11
10
11
12
12
11Vi—12
nvi
11-im
11
101^
10-10Vi
10
9Vi-10
9Vi
9-9Vi
9
8W-9
8Vi
8Vi-9
10
10
11
12
12
11 Vi
llVi
11
11
10W
10
10
9'/>
9>/i
9
9
9
8Vi
8Vi
Effective date
Range (or
level)—
All F.R.
Banks
1984—Apr.
9
13
Nov. 21
26
Dec. 24
8Vi-9
9
8Vi-9
8>/2
8
9
9
8Vi
8Vi
8
1985—May 20
24
7Vi-8
7Vi
7Vi
7Vi
1986—Mar.
7
10
Apr. 21
July 11
Aug. 21
22
7-7 Vi
7
6Vi-7
6
5Vi-6
5Vi
7
7
6Vi
6
5Vi
5Vi
1987—Sept. 4
5Vi-6
6
6
6
11
6-6 Vi
6Vi
6Vi
6Vi
1989—Feb. 24
27
6Vi-7
7
7
7
7
7
11
1988—Aug.
9
In effect Oct. 26, 1989
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 Vi percent above the rate on adjustment
credit. The program was reestablished for 1986 and 1987 but was not renewed for
1988.
2. Extended credit is available to depository institutions, when similar assistance is not reasonably available from other sources, when exceptional circumstances or practices involve only a particular institution or when an institution is
experiencing difficulties adjusting to changing market conditions over a longer
period of time.
3. For extended-credit loans outstanding more than 30 days, a flexible rate
somewhat above rates on market sources of funds ordinarily will be charged, but
F.R.
Bank
of
N.Y.
1980—July 28
29
Sept. 26
Nov. 17
Dec. 5
7 3 /4
8
8
Range(or
level)—
All F.R.
Banks
in no case will the rate charged be less than the basic discount rate plus 50 basis
points. The flexible rate is reestablished on the first business day of each
two-week reserve maintenance period. At the discretion of the Federal Reserve
Bank, the time period for which the basic discount rate is applied may be
shortened.
4. For earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics, 1914-1941, and 1941-1970; Annual Statistical
Digest, 1970-1979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than four weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980 through May 7,
1980. There was no surcharge until Nov. 17, 1980, when a 2 percent surcharge was
adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and
to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective
Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981 the
formula for applying the surcharge was changed from a calendar quarter to a
moving 13-week period. The surcharge was eliminated on Nov. 17, 1981.
A8
DomesticNonfinancialStatistics • December 1989
1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1
Percent of deposits
Type of deposit, and
deposit interval
Depository institution requirements
after implementation of the
Monetary Control Act
Effective date
Net transaction accounts
$0 million-$41.5 million....
More than $41.5 million . . .
12/20/88
12/20/88
Nonpersonal time deposits5
By original maturity
Less than 1 Vi years
1 >/2 years or more
10/6/83
10/6/83
Eurocurrency liabilities
All types
1. Reserve requirements in effect on Dec. 31, 1988. Required reserves must be
held in the form of deposits with Federal Reserve Banks or vault cash. Nonmembers may maintain reserve balances with a Federal Reserve Bank indirectly on a
pass-through basis with certain approved institutions. For previous reserve
requirements, see earlier editions of the Annual Report and of the FEDERAL
RESERVE BULLETIN. Under provisions of the Monetary Control Act, depository
institutions include commercial banks, mutual savings banks, savings and loan
associations, credit unions, agencies and branches of foreign banks, and Edge
corporations.
2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law
97-320) requires that $2 million of reservable liabilities (transaction accounts,
nonpersonal time deposits, and Eurocurrency liabilities) of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabilities subject to this zero percent reserve requirement each year for the succeeding calendar year by 80 percent of the percentage
increase in the total reservable liabilities of all depository institutions, measured
on an annual basis as of June 30. No corresponding adjustment is to be made in
the event of a decrease. On Dec. 20, 1988, the exemption was raised from $3.2
million to $3.4 million. In determining the reserve requirements of depository
institutions, the exemption shall apply in the following order: (1) net NOW
accounts (NOW accounts less allowable deductions); (2) net other transaction
accounts; and (3) nonpersonal time deposits or Eurocurrency liabilities starting
with those with the highest reserve ratio. With respect to NOW accounts and
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. 20,
1988 for institutions reporting quarterly and Dec. 27, 1988 for institutions
reporting weekly, the amount was increased from $40.5 million to $41.5 million.
5. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which a beneficial interest is
held by a depositor that is not a natural person. Also included are certain
transferable time deposits held by natural persons and certain obligations issued
to depository institution offices located outside the United States. For details, see
section 204.2 of Regulation D.
Policy Instruments
A9
1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1
Millions of dollars
1989
Type of transaction
1986
1987
1988
Feb.
Mar.
Apr.
June
May
Aug.
July
U . S . TREASURY SECURITIES
Outright transactions (excluding matched
transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
22,604
2,502
0
1,000
18,983
6,051
0
9,029
8,223
587
0
2,200
0
3,688
0
1,600
0
0
0
0
3,077
0
0
0
311
321
0
1,200
0
571
0
1,200
0
5,517
0
2,400
0
934
0
800
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
190
0
18,674
-20,180
0
3,659
300
21,504
-20,388
70
2,176
0
23,854
-24,588
0
0
0
5,418
-2,308
0
0
0
2,646
-2,322
0
172
0
1,657
-110
0
0
0
2,863
-3,628
0
0
0
1,828
-1,434
0
0
0
1,749
-1,073
0
0
0
4,200
-4,025
0
10
11
12
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
893
0
-17,058
16,985
10,231
452
-17,975
18,938
5,485
800
-17,720
22,515
0
225
-5,319
2,008
0
0
-2,646
2,322
1,436
0
-1,532
0
0
75
-2,036
3,328
0
0
-1,828
1,434
0
13
-1,584
787
0
150
-3,321
3,425
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
236
0
-1,620
2,050
2,441
0
-3,529
950
1,579
175
-5,946
1,797
0
0
-100
200
0
0
0
0
287
0
-125
110
0
0
258
200
0
0
0
0
0
9
-165
286
0
0
-879
400
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
158
0
0
1,150
1,858
0
0
500
1,398
0
-188
275
0
0
0
100
0
0
0
0
284
0
0
0
0
0
-1,086
100
0
0
0
0
0
0
0
0
0
0
0
200
24,081
2,502
1,000
37,170
6,803
9,099
18,863
1,562
2,200
0
3,913
1,600
0
0
0
5,255
0
0
311
396
1,200
0
571
1,200
0
5,539
2,400
0
1,084
800
Matched transactions
25 Gross sales
26 Gross purchases
927,999
927,247
950,923
950,935
1,168,484
1,168,142
110,393
112,472
83,677
82,821
77,349
78,259
123,029
113,041
128,139
138,141
123,373
118,221
146,611
147,228
Repurchase agreements2
27 Gross purchases
28 Gross sales
170,431
160,268
314,621
324,666
152,613
151,497
0
0
0
0
22,244
12,547
31,419
41,117
6,203
6,203
4,961
4,961
0
0
29,988
11,234
15,872
-3,434
-856
15,863
-20,971
8,232
-13,091
-1,267
0
0
398
0
0
276
0
0
587
0
0
40
0
0
0
0
0
125
0
0
0
0
0
0
0
0
45
0
0
0
31,142
30,521
80,353
81,350
57,259
56,471
0
0
0
0
7,207
3,366
12,732
16,573
1,666
1,666
1,137
1,137
0
0
35 Net change in federal agency obligations
222
-1,274
198
-40
0
3,716
-3,841
0
-45
0
36 Total net change in System Open Market
Account
30,212
9,961
16,070
-3,474
-856
19,579
-24,812
8,232
-13,136
-1,267
All maturities
22 Gross purchases
23 Gross sales
24 Redemptions
29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
Outright transactions
30 Gross purchases
31 Gross sales
32 Redemptions
Repurchase agreements2
33 Gross purchases
34 Gross sales
1. Sales, redemptions, and negative figures reduce holdings of the System Open
Market Account; all other figures increase such holdings. Details may not add to
totals because of rounding.
2. In July 1984 the Open Market Trading Desk discontinued accepting bankers
acceptances in repurchase agreements,
A10
DomesticNonfinancialStatistics • December 1989
1.18 FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements1
Millions of dollars
Account
Aug. 30
Sept. 6
Wednesday
End of month
1989
1989
Sept. 13
Sept. 20
Sept. 27
July
Aug.
Sept.
Consolidated condition statement
ASSETS
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
8 Held under repurchase agreements
U.S. Treasury securities
Bought outright
9
Bills
10
Notes
11
Bonds
Total bought outright'
12
13 Held under repurchase agreements
14 Total U.S. Treasury securities
15 Total loans and securities
16 Items in process of collection
1/ Bank premises
Other assets
18 Denominated in foreign currencies 3
19 All other 4
20 Total assets
11,066
8,518
450
11,066
8,518
430
11,066
8,518
434
11,065
8,518
454
11,065
8,518
472
11,066
8,518
450
11,066
8,518
445
11,065
8,518
480
561
0
0
532
0
0
483
0
0
962
0
0
585
0
0
594
0
0
542
0
0
598
0
0
6,609
0
6,555
0
6,555
0
6,555
1,785
6,555
1,058
6,609
0
6,609
0
6,555
0
93,776
91,950
30,614
216,339
0
216,339
96,568
91,950
30,614
219,132
0
219,132
96,624
91,950
30,614
219,188
0
219,188
96,313
91,950
30,614
218,876
7,571
226,447
96,495
91,950
30,614
219,058
1,507
220,565
95,962
92,300
30,414
218,676
0
218,676
94,846
91,951
30,613
217,409
0
217,409
98,487
91,950
30,614
221,051
0
221,051
223,509
226,219
226,225
235,749
228,764
225,879
224,560
228,203
6,266
769
9,356
775
6,539
776
7,722
776
6,130
775
4,409
768
6,206
776
6,909
775
22,065
9,693
21,511
9,845
22,941
10,062
23,195
10,896
24,286
8,647
21,529
10,618
21,292
9,655
26,411
8,247
282,336
287,720
286,561
298,374
288,656
283,237
282,515
290,607
LIABILITIES
21 Federal Reserve notes
Deposits
To depository institutions
U.S. Treasury—General account
Foreign—Official accounts
Other
230,075
231,974
231,336
229,756
229,171
230,229
230,766
229,076
22
23
24
25
33,166
5,714
207
339
35,396
4,537
209
263
36,011
5,458
187
265
43,101
11,476
192
299
36,021
9,768
335
376
34,339
5,312
371
236
31,924
6,652
264
275
32,253
13,452
326
318
26 Total deposits
39,426
40,405
41,921
55,069
46,501
40,258
39,116
46,348
5,370
2,744
8,245
2,931
5,816
2,951
5,914
2,994
5,326
2,903
4,057
2,841
5,572
3,072
6,408
3,080
277,615
283,555
282,024
293,733
283,901
277,384
278,524
284,911
2,161
2,112
448
2,162
1,879
125
2,164
1,970
402
2,197
2,006
439
2,198
2,112
445
2,156
2,112
1,585
2,162
1,809
22
2,199
2,112
1,385
33 Total liabilities and capital accounts
282,336
287,720
286,561
298,374
288,656
283,237
282,515
290,607
34 MEMO: Marketable U.S. Treasury securities held in
custody for foreign and international accounts
242,745
240,668
241,320
239,324
239,416
236,847
242,857
237,904
274,736
44,507
230,229
276,492
45,727
230,766
277,676
48,601
229,076
27 Deferred credit items
28 Other liabilities and accrued dividends5
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
Federal Reserve note statement
35 Federal Reserve notes outstanding issued to bank
36
LESS: Held by bank
37
Federal Reserve notes, net
Collateral held against notes net:
38 Gold certificate account
39 Special drawing rights certificate account
40 Other eligible assets
41 U.S. Treasury and agency securities
276,738
46,663
230,075
276,474
44,500
231,974
276,733
45,397
231,336
276,765
47,010
229,756
277,492
48,322
229,171
11,066
8,518
0
210,492
11,066
8,518
0
212,390
11,066
8,518
0
211,753
11,065
8,518
0
210,172
11,065
8,518
0
209,587
8,518
0
210,645
11,066
8,518
0
211,182
11,065
8,518
0
209,493
42 Total collateral
230,075
231,974
231,336
229,756
229,171
230,229
230,766
229,076
1. Some of these data also appear in the Board's H.4.1 (503) release. For
address, see inside front cover. Components may not add to totals because of
rounding.
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.
i 1,066
3. Valued monthly at market exchange rates.
4. Includes special investment account at the Federal Reserve Bank of Chicago
in Treasury bills maturing within 90 days.
5. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
Federal Reserve Banks
1.19 FEDERAL RESERVE BANKS
All
Maturity Distribution of Loan and Security Holdings1
Millions of dollars
Type and maturity groupings
Wednesday
End of month
1989
1989
Aug. 30
Sept. 6
Sept. 13
Sept. 20
Sept. 27
July 31
Aug. 31
Sept. 29
1 Loans—Total
Within 15 days
2
3
16 days to 90 days
4 91 days to 1 year
561
468
93
0
532
247
285
0
483
202
281
0
962
899
62
0
585
511
75
0
594
415
179
0
541
354
187
0
533
455
78
0
5 Acceptances—Total
Within 15 days
6
7
16 days to 90 days
8
91 days to 1 year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
216,339
9,316
49,957
65,639
51,777
13,145
26,506
219,132
7,080
52,247
68,617
51,537
13,145
26,506
219,188
8,271
50,681
69,048
51,537
13,145
26,506
218,876
8,986
49,019
69,683
51,537
13,145
26,506
219,058
9,007
51,446
67,417
51,537
13,145
26,506
218,676
9,144
48,395
69,625
51,583
13,623
26,306
217,409
2,459
50,331
73,431
51,537
13,145
26,506
221,051
5,383
54,519
69,961
51,537
13,145
26,506
6,609
334
472
1,359
3,242
1,012
189
6,555
0
719
1,383
3,260
1,004
189
6,555
16
773
1,343
3,230
1,004
189
6,555
163
626
1,343
3,230
1,004
189
6,555
191
619
1,339
3,213
1,004
189
6,609
101
721
1,332
3,249
1,016
189
6,609
334
472
1,359
3,242
1,012
189
6,555
191
619
1,339
3,213
1,004
189
9 U.S. Treasury securities—Total
10 Within 15 days 2
11
16 days to 90 days
12 91 days to 1 year
13 Over 1 year to 5 years
14 Over 5 years to 10 years
15 Over 10 years
16 Federal agency obligations—Total
17 Within 15 days2
18
16 days to 90 days
19 91 days to 1 year
20 Over 1 year to 5 years
21 Over 5 years to 10 years
22
Over 10 years
1. Holdings under repurchase agreements are classified as maturing within 15
days in accordance with maximum maturity of the agreements.
NOTE: Components may not add to totals due to rounding,
A12
DomesticNonfinancialStatistics • December 1989
1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE 1
Billions of dollars, averages of daily figures
1989
Item
1985
1986
1987
1988
Dec.
Dec.
Dec.
Dec.
Feb.
2
3
4
5
Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves
Monetary base
Apr.
May
June
July
Aug.
Sept.
58.75r
59.17
Seasonally adjusted
ADJUSTED FOR
.
CHANGES IN RESERVE REQUIREMENTS^
1 Total reserves3
Mar.
48.49
58.14
58.69
60.71
60.26
59.85
59.46
58.74
58.35
58.70
47.17
47.67
47.44
219.51
57.31
57.62
56.77
241.45
57.92
58.40
57.66
257.99
58.99
60.23
59.67
275.50
58.77
59.82
59.11
277.55
58.04
59.38
58.90
278.61
57.17
58.88
58.69
278.67
57.02
58.22
57.71
278.33
56.86
57.78
57.44
279.06
58.00
58.11
57.73
279.98
58.08
58.12
57.87
280.29
58.48
58.50
58.28
281.98
Not seasonally adjusted
6
7
8
9
10
Total reserves3
Nonborrowed reserves
Nonborrowed reserves plus extended credit4
Required reserves
Monetary base 5
49.59
59.46
60.06
62.21
59.37
58.94
60.01
57.72
58.41
58.95
58.30
58.86
48.27
48.77
48.53
222.73
58.64
58.94
58.09
245.25
59.28
59.76
59.03
262.08
60.50
61.74
61.17
279.71
57.88
58.93
58.22
274.36
57.13
58.46
57.98
275.62
57.72
59.43
59.23
278.11
56.00
57.20
56.69
277.49
56.92
57.84
57.51
280.18
58.26
58.37
57.99
282.07
57.62
57.66'
57.41 R
281.09
58.16
58.19
57.97
280.64
48.14
59.56
62.12
63.74
60.69
60.21
61.29
58.91
59.59
60.25
59.56
60.08
46.82
47.32
47.08
223.53
58.73
59.04
58.19
247.71
61.35
61.83
61.09
266.16
62.02
63.27
62.70
283.18
59.21
60.26
59.54
277.66
58.40
59.73
59.25
278.94
59.00
60.71
60.51
281.52
57.19
58.39
57.88
280.54
58.10
59.01
58.68
283.27
59.56
59.67
59.29
285.36
N O T ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS"
11
Total reserves3
12
13
14
15
Nonborrowed reserves
Nonborrowed reserves plus extended credit4
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
58.88'
58.93
58.67'
284.23
59.38
59.40
59.19
283.71
the terms and conditions established for the extended credit program to helpdepository institutions deal with sustained liquidity pressures. Because there isnot
the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
5. The monetary base not adjusted for discontinuities consists of total reserves
plus required clearing balances and adjustments to compensate for float at Federal
Reserve Banks and the currency component of the money stock plus, for institutions not having required reserve balances, the excess of current vault cash over
the amount applied to satisfy current reserve requirements. Currency and vault
cash figures are measured over the weekly computation period ending Monday.
The seasonally adjusted monetary base consists of seasonally adjusted total
reserves, which include excess reserves on a not seasonally adjusted basis, plus
the seasonally adjusted currency component of the money stock and the remaining items seasonally adjusted as a whole.
6. Reflects actual reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated with
implementation of the Monetary Control Act or other regulatory changes to
reserve requirements.
Monetary and Credit Aggregates
A13
1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES 1
Billions of dollars, averages of daily figures
1989
Item2
1985
Dec.
1986
Dec.
1987
Dec.
1988
Dec.
June
July"
Aug/
Sept.
777.3
3,117.6
4,003.2
4,794.3
9,479.2
777.7
3,136.4
4,010.5
4,814.7
9,552.6
781.5
3,156.1
4,013.4
n.a.
n.a.
Seasonally adjusted
1
2
3
4
5
Ml
M2
M3
L
Debt
620.5
2,567.4
3,201.7
3,828.5r
6,741.5
725.9
2,811.2
3,494.9
4,135.1'
7,597.0
752.3
2,909.9
3,677.6
4,336.7f
8,316.1
790.3
3,069.5
3,915.4
4,672.2r
9,081.1
770.3
3,088.0
3,973.5r
4,759. V
9,431.6
6
7
8
9
Ml components
Currency
Travelers checks
Demand deposits 5
Other checkable deposits6
167.8
5.9
267.3
179.5
180.5
6.5
303.2
235.8
196.4
7.1
288.3
260.4
211.8
7.6
288.6
282.3
217.4
7.2
275.0
270.7
218.0
7.1
278.9
273.3
218.4
7.2
277.6
274.6
219.3
7.2
277.5
277.6
10
11
Nontransactions components
In M27
In M3 only8
1,946.9
634.3
2,085.3
683.7
2,157.6
767.7
2,279.3
845.9
2,317.7
885.5'
2,340.3
885.6
2,358.7
874.1
2,374.6
857.3
12
13
Savings deposits 9
Commercial Banks
Thrift institutions
125.0
176.6
155.8
215.2
178.5
237.8
192.5
238.8
181.4
220.6
181.9
219.6
183.1
219.2
184.3
219.9
14
15
Small-denomination time deposits 10
Commercial Banks
Thrift institutions
383.3
499.2
364.6
489.3
385.3
528.8
443.1
582.2
501.9
616.6
505.1
621.3
508.4
623.4
510.5
621.7
16
17
Money market mutual funds
General purpose and broker-dealer
Institution-only
176.5
64.5
208.0
84.4
221.1
89.6
239.4
87.6
265.1
95.1
274.6
98.2
285.5
100.6
294.8
99.1
18
19
Large-denomination time deposits"
Commercial Banks
Thrift institutions
285.1
151.5
288.8
150.1
325.4
162.0
364.9
172.9
396.4
176.6
397.6
175.4
397.0
172.1
395.3
167.9
20
21
Debt components
Federal debt
Nonfederal debt
1,585.8
5,155.7
1,805.8
5,791.2
1,957.4
6,358.6
2,113.5
6,967.6
2,184.3
7,247.3
2,184.5
7,294.7
2,204.6
7,348.0
n.a.
n.a.
781.8
3,125.4
4,004.9
4,785.2
9,435.7
777.8
3,137.4
4,012.2
4,809.4
9,505.3
778.9
3,149.5
4,011.4
n.a.
n.a.
Not seasonally adjusted
22
23
24
25
26
Ml
M2
M3
L
Debt
28
29
30
Ml components
Currency
Travelers checks 4
Demand deposits
Other checkable deposits 6
32
Nontransactions components
M2 . .. 8
M3 only
33
34
Money market deposit accounts
Commercial Banks
Thrift institutions
27
Savings deposits 9
Commercial Banks
36 Thrift institutions
633.5
2,576.2
3,213.3
3,841.5r
6,730.9
740.4
2,821.1
3,507.4
4,150.0"
7,580.7
766.4
2,918.7
3,688.6
4,350.9'
8,297.6
804.4
3,077.2
3,925.2
4,685,6r
9,066.4
773.8
3,090.8
3,974.T
4,759.9"
9,390.8
170.2
5.5
276.9
180.9
183.0
6.0
314.0
237.4
199.3
6.5
298.6
262.0
214.9
6.9
298.8
283.7
218.5
7.5
276.4
271.4
219.7
8.1
281.5
272.5
219.3
8.1
276.8
273.6
218.6
7.7
276.1
276.5
1,942.7
637.1
2,080.7
686.3
2,152.3
769.9
2,272.9
848.0
2,317.0
883.3r
2,343.6
879.5
2,359.6
874.8
2,370.6
862.0
332.8
180.7
379.6
192.9
358.8
167.5
352.5
150.3
328.1
128.8
330.8
129.0
335.8
129.7
338.9
130.2
123.7
174.8
154.2
212.7
176.6
234.8
190.3
235.6
183.2
223.3
184.3
223.2
184.0
221.0
184.0
220.7
37
38
Small-denomination time deposits 10
Commercial Banks
Thrift institutions
384.0
499.9
365.3
489.8
386.1
529.1
444.1
582.4
499.7r
612.8
504.4
619.8
507.9
620.9
510.9
618.9
39
40
Money market mutual funds
General purpose and broker-dealer
Institution-only
176.5
64.5
208.0
84.4
221.1
89.6
239.4
87.6
265.1
95.1
274.6
98.2
285.5
100.6
294.8
99.1
41
42
Large-denomination time deposits"
Commercial Banks
Thrift institutions
285.4
151.8
289.1
150.7
325.8
163.0
365.6
174.1
394.9
174.8
394.9
173.3
397.7
171.3
397.4
168.2
43
44
Debt components
Federal debt
Nonfederal debt
1,583.7
5,147.1
1,803.9
5,776.8
1,955.6
6,342.0
2,111.8
6,954.6
2,165.1
7,225.7
2,164.2
7,271.5
2,183.6
7,321.7
For notes see following page.
n.a.
n.a.
A14
DomesticNonfinancialStatistics • December 1989
NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the Board's H.6 (508)
release. Historical data are available from the Monetary and Reserves Projection
section, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
2. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of depository institutions; (2) travelers checks of nonbank issuers; (3) demand
deposits at all commercial banks other than those due to depository institutions,
the U.S. government, and foreign banks and official institutions less cash items in
the process of collection and Federal Reserve float; and (4) other checkable
deposits (OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, credit union
share draft accounts, and demand deposits at thrift institutions.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, MMDAs, savings and smalldenomination time deposits (time deposits—including retail RPs—in amounts of
less than $100,000), and balances in both taxable and tax-exempt general purpose
and broker-dealer money market mutual funds. Excludes individual retirement
accounts (IRA) and Keogh balances at depository institutions and money market
funds. Also excludes all balances held by U.S. commercial banks, money market
funds (general purpose and broker-dealer), foreign governments and commercial
banks, and the U.S. government.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted
is the estimated amount of overnight RPs and Eurodollars held by institution-only
money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are based on monthly averages.
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of
depository institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. Travelers checks issued by depository institutions are included in
demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other
than those due to depository institutions, the U.S. government, and foreign banks
and official institutions less cash items in the process of collection and Federal
Reserve float.
6. Consists of NOW and ATS balances at all depository institutions, credit
union share draft balances, and demand deposits at thrift institutions.
7. Sum of overnight RPs and overnight Eurodollars, money market fund
balances (general purpose and broker-dealer), MMDAs, and savings and small
time deposits.
8. Sum of large time deposits, term RPs, and term Eurodollars of U.S.
residents, money market fund balances (institution-only), less the estimated
amount of overnight RPs and Eurodollars held by institution-only money market
funds.
9. Savings deposits exclude MMDAs.
10. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. AH individual retirement accounts (IRA) and
Keogh accounts at commercial banks and thrifts are subtracted from small time
deposits.
11. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
12. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
Monetary and Credit Aggregates
A15
1.22 BANK DEBITS AND DEPOSIT TURNOVER 1
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
1989
Bank group, or type of customer
1988
Mar.
Feb.
May
June
July
Seasonally adjusted
DEBITS TO
Demand deposits 3
1 All insured banks
2 Major New York City banks
3 Other banks
4 ATS-NOW accounts 4
5 Savings deposits
Apr.
188,346.0
91,397.3
96,948.8
2,182.5
403.5
217,116.2
104,496.3
112,619.8
2,402.7
526.5
226,888.4
107,547.3
119,341.2
2,757.7
583.0
255,774.3
121,770.1
134,004.2
3,054.9
649.2
249,088.3
111,387.4
137,700.9
3,264.9
675.2
245,230.1
107,808.9
137,421.3
2,986.4
585.5
266,468.1
120,984.1
145,483.9
3,406.5
647.2
284,129.2
129,166.6
154,962.7
3,696.5
640.0
276,453.7
114,991.8
161,461.9
3,596.3
580.4
556.5
2,498.2
321.2
15.6
3.0
612.1
2,670.6
357.0
13.8
3.1
641.2
2,903.5
376.8
14.7
3.1
734.4
3,618.0
425.9
16.0
3.5
721.0
3,393.0
440.4
17.1
3.6
697.5
3,092.2
433.9
15.7
3.2
767.1
3,342.1
467.5
18.2
3.6
824.0
3,588.5
501.8
19.8
3.6
788.4
3,222.3
512.6
19.1
3.2
DEPOSIT TURNOVER
6
7
8
9
10
Demand deposits3
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 4
Savings deposits
Not seasonally adjusted
DEBITS TO
Demand deposits 3
11 All insured banks
12 Major New York City banks
13 Other banks
14 ATS-NOW accounts 4
15 MMDA"
16 Savings deposits
188,506.7
91,500.1
97,006.7
2,184.6
1,609.4
404.1
217,125.1
104,518.8
112,606.2
2,404.8
1,954.2
526.8
227,010.7
107,565.0
119,445.7
2,754.7
2,430.1
578.0
231,347.8
110,047.2
121,300.6
2,762.1
2,622.4
573.3
264,581.6
120,202.2
144,379.4
3,228.6
2,636.7
649.6
238,265.6
105,461.7
132,803.9
3,205.2
2,700.2
649.6
274,861.8
121,507.2
153,354.6
3,325.2
2,910.5
637.9
295,522.8
134,020.7
161,502.1
3,770.8
3,136.0
641.4
268,243.0
117,276.1
150,966.9
3,549.0
2,686.7
610.4
556.7
2,499.1
321.2
15.6
4.5
3.0
612.3
2,674.9
356.9
13.8
5.3
3.1
641.7
2,901.4
377.1
14.7
6.9
3.1
683.1
3,255.7
397.8
14.5
7.8
3.1
782.3
3,603.3
473.6
16.9
7.8
3.5
676.6
3,017.6
418.7
16.3
8.1
3.5
805.9
3,482.5
500.9
18.0
9.0
3.5
855.6
3,795.0
520.9
20.3
9.7
3.6
761.3
3,247.5
477.4
18.9
8.2
3.4
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 ATS and NOW accounts, MMDA and special club accounts, such
as Christmas and vacation clubs.
6. Money market deposit accounts.
A16
DomesticNonfinancialStatistics • December 1989
1.23 LOANS AND SECURITIES
All Commercial Banks'
Billions of dollars; averages of Wednesday figures
1988
1989
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
i Other securities
4 Total loans and leases2
5 Commercial and industrial . . . .
6
Bankers acceptances held . . .
7
Other commercial and
industrial
8
U.S. addressees 4
y
Non-U.S. addressees 4
10 Real estate
a
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
2,401.4
2,410.2
2,417.2
2,422.8
2,451.9
2,464.9
2,470.9
2,486.3
2,496.8
2,518.1
2,534.4
2,544.1
355.6
196.8
1,848.9
601.6
4.1
358.8
195.9
1,855.6
601.8
4.3
361.4
194.0
1,861.9
601.9
4.1
360.4
189.6
1,872.9
606.6
4.4
361.8
190.4
1,899.7
619.0
4.2
368.8
189.7
1,906.5
617.8
4.0
370.7
187.2
1,913.1
620.6
4.1
373.5
186.4
1,926.5
626.3
4.2
373.8
185.7
1,937.3
624.9
4.2
374.4
184.6
1,959.1
632.1
4.1
376.6
182.8
1,974.9
637.3
4.5
378.8
182.9
1,982.4
636.9
4.8
597.5
590.9
6.5
659.8
351.6
38.5
597.4
591.3
6.1
665.3
353.0
38.2
597.8
591.8
5.9
672.0
355.5
38.5
602.2
596.6
5.7
678.9
357.9
37.7
614.8
609.9
4.9
685.6
358.9
44.7
613.7
608.3
5.4
691.8
360.6
43.6
616.6
611.7
4.8
699.5
362.9
40.0
622.1
616.6
5.4
705.5
365.4
38.r
620.7
615.2
5.5
712.0
366.0
41.3'
628.1
622.2
5.9
719.9
367.0
40.5'
632.7'
627.1
5.7
729.0
369.3
39.9'
632.1
626.7
5.5
734.4
372.1
40.6
30.4
29.8
30.2
30.3
30.0
30.7
30.3
30.7
30.6
30.7
29.7
30.7
29.2
30.4
29.0
30.3
30.5'
30.3
31.7
30.4
32.0
30.3'
32.1
30.2
48.5
7.6
4.9
28.9
47.5
47.7
8.1
4.9
29.1
47.0
46.8
7.6
4.9
29.2
44.8
44.4
7.8
4.8
29.4
44.4
44.5
8.5
4.8
29.6
42.7
44.6
8.2
4.8
29.6
45.2
44.6
8.3
4.9
29.8
42.9
44.7r
9.4
4.9
30.0
43.0r
44.5'
9.3
4.7
29.9
43.8'
44.2
8.9
4.5
30.3
49.5'
43.9
9.3
4.3
30.3
49.3'
43.5
8.5
4.3
31.0
48.5
Not seasonally adjusted
20 Total loans and securities2
2,392.6
2,409.2
2,429.6
2,430.7
2,453.6
2,462.8
2,473.9
2,487.4
2,500.9
2,511.8
2,526.9
2,541.2
21 U.S. government securities
22 Other securities
23 Total loans and leases2
24 Commercial and industrial
25
Bankers acceptances held 3 ...
Other commercial and
26
industrial
27
U.S. addressees 4
28
Non-U.S. addressees 4
29 Real estate
30 Individual
31 Security
32 Nonbank financial
institutions
33 Agricultural
34 State and political
subdivisions
35 Foreign banks
36 Foreign official institutions
3/
Lease financing receivables . . . .
38 All other loans
352.6
195.6
1,844.4
597.0
4.2
357.5
196.0
1,855.7
599.3
4.3
361.6
193.7
1,874.2
605.0
4.1
362.2
191.7
1,876.9
605.8
4.1
366.3
190.1
1,897.2
618.3
4.1
370.2
188.9
1,903.7
621.1
4.0
370.9
187.2
1,915.9
625.2
4.0
372.6
186.8
1,928.0
630.0
4.3
372.6
186.0
1,942.3
629.0
4.4
373.1
184.1
1,954.6
631.0
4.2
376.8
183.1
1,966.9
632.7
4.6
378.5
182.8
1,980.0
632.2
5.0
592.8
586.6
6.2
660.7
352.6
36.9
595.0
588.9
6.1
667.2
354.1
37.6
600.9
594.8
6.1
673.3
359.4
38.9
601.7
596.4
5.3
678.9
360.7
38.2
614.2
608.9
5.3
683.6
358.2
43.8
617.1
611.8
5.3
689.2
357.7
44.1
621.3
616.0
5.3
697.4
360.3
42.0
625.8
620.2
5.5
704.1
363.2
38.9
624.6
619.0
5.6
712.1
364.5
42^
626.8
621.1'
5.6
720.6
365.9
40.2'
628.0
622.6
5.5
730.4
369.3
38.6'
627.3
621.8
5.5
736.5
374.0
39.1
30.1
30.6
30.3
30.5
31.1
30.5
30.7
30.1
30.0
29.8
29.1
29.6
29.0
29.6
29.2
30.1
30.7'
30.7
31.7
31.1
31.9
31.2
32.1
31.1
48.0
7.6
4.9
28.7
47.3
47.1
8.2
4.9
28.9
47.5
46.6
7.9
4.9
29.4
47.3
45.8
8.1
4.8
29.7
44.0
45.5
8.5
4.8
29.7
45.0
45.1
8.0
4.8
29.7
45.4
44.9'
8.0
4.9
29.8
44.7
44.6'
9.0
4.9
30.0
44.1'
44.1
9.1
4.7
30.0
44.5'
43.6
9.0
4.5
30.2
46.9'
43.4
9.1
4.3
30.2
45^
42.9
8.7
4.3
30.9
48.1
1. Data have been revised because of benchmarking beginning January 1984 .
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'
Monthly averages, billions of dollars
1988
1989
Source
Seasonally adjusted
1 Total nondeposit funds 2
2 Net balances due to related foreign offices
3 Borrowings from other
than commercial banks
in United States 4
4 Domestically chartered banks
5 Foreign-related banks
Not seasonally adjusted
Total nondeposit funds
7 Net balances due to related foreign offices
8 Domestically chartered banks
9 Foreign-related banks
10 Borrowings from other
than commercial banks
in United States 4
11 Domestically chartered banks
Federal funds and security RP
12
borrowings
13
Other 6
14 Foreign-related banks 6
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.'
Sept.
211.3
5.6
217.8
9.3
215.2
6.8
208.3'
8.3'
211.5'
ll.C
212.2'
8.3'
206.0'
3.2'
210.1'
.2'
227.3'
8.2'
228.5'
11.4'
229.9
9.3
238.2
9.8
205.6
167.4
38.2
208.4
169.1
39.3
208.4
169.4
39.0
200.0
163.0
37.0
200.6'
161.3
39.3'
203.9'
165.8
38.1
202.9'
164.2
38.7
209.9
169.2
40.7
219.1
179.1
40.0
217.1
175.3
41.8
220.5
178.2
42.3
228.4
185.1
43.4
205.2
5.3
-20.4
25.7
214.5
10.4
-19.1
29.5
209.6r
9.3'
-20.6'
29.9
207.5'
8.0'
-20.2'
28.2
216.3'
10.7'
-17.6'
28.3
217.8'
7.3'
-19.5'
26.8
208.7'
1.1'
-22.7'
23.8
217.7'
2.8'
-21.8'
24.6
230.4'
8.3'
-18.2'
26.6
224.2'
8.4'
-16.3'
24.7
228.7
9.0
-15.4
24.4
234.2
10.7
-14.1
24.9
200.0
163.2
204.1
167.8
200.3
163.3
199.5
161.3
205.6
165.1
210.5
170.9
207.7'
168.1
214.9
173.8
222.1'
180.4
215.8
173.4
219.7
177.7
223.4
180.9
159.1
4.1
36.8
163.2
4.6
36.3
159.8
3.5
37.0
157.9
3.4
38.2'
161.9
3.2
40.5
167.4
3.5
39.6
163.8
4.3
39.5
170.0
3.7
41.1
177.0
3.4
41.6
170.8
2.7
42.4
175.1
2.6
42.0
178.3
2.6
42.6
423.2
424.7
424.5
425.6
429.2
429.8
434.9
434.5
440.3
440.2
446.7
448.2
452.7
450.6
456.8
455.5
458.7'
457.3
461.6
458.9
460.5
461.3
458.2
460.3
27.2
27.7
23.0
16.3
24.9
22.9
20.3
25.0
20.3
25.9
20.3
18.1
20.9
20.2
27.1
34.3
27.4
26.2
22.7
23.0
22.9
15.8
23.8
24.8
MEMO
Gross large time deposits
Seasonally adjusted
Not seasonally adjusted
U.S. Treasury demand balances at commercial
banks 8
17 Seasonally adjusted
18 Not seasonally adjusted
15
16
1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus agencies and branches of foreign banks, New
York investment companies majority owned by foreign banks, and Edge Act
corporations owned by domestically chartered and foreign banks.
These data also appear in the Board's G.10 (411) release. For address, see
inside front cover.
2. Includes federal funds, RPs, and other borrowing from nonbanks and net
balances due to related foreign offices.
3. Reflects net positions of U.S. chartered banks, Edge Act corporations, and
U.S. branches and agencies of foreign banks with related foreign offices plus net
positions with own IBFs.
4. Other borrowings are borrowings through any instrument, such as a promissory note or due bill, given for the purpose of borrowing money for the banking
business. This includes borrowings from Federal Reserve Banks and from foreign
banks, term federal funds, loan RPs, and sales of participations in pooled loans.
5. Based on daily average data reported weekly by approximately 120 large
banks and quarterly or annual data reported by other banks.
6. Figures are partly daily averages and partly averages of Wednesday data.
7. Time deposits in denominations of $100,000 or more. Estimated averages of
daily data.
8. U.S. Treasury demand deposits and Treasury tax-and-loan notes at commercial banks. Averages of daily data.
A18
DomesticNonfinancialStatistics • December 1989
1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Last-Wednesday-of-Month Series1
Billions of dollars
1988
1989
Account
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
2,591.6
532.9
341.5
191.4
24.8
2,033.9
170.3
1,863.6
601.3
669.6
355.3
237.5
2,601.6
533.5
345.3
188.2
19.2
2,048.9
165.7
1,883.2
608.8
676.3
361.4
236.6
2,587.0
533.5
347.3
186.2
21.5
2,032.1
159.9
1,872.2
604.6
679.7
360.8
227.0
2,624.0
535.8
351.3
184.5
20.1
2,068.0
173.2
1,894.9
617.6
684.1
358.3
234.8
2,627.1
539.1
355.5
183.6
21.8
2,066.2
154.9
1,911.3
622.9
692.6
358.1
237.7
2,623.0
538.3
356.6
181.7
17.8
2,066.8
150.7
1,916.2
627.3
699.4
361.8
227.7
2,659.8
541.1
359.1
182.0
19.2
2,099.5
160.5
1,939.0
631.1
706.7
363.8
237.4
2,660.7
541.6
362.2
179.4
18.2
2,100.9
155.0
1,945.9
628.3
715.1
366.0
236.6
2,677.1
538.3
360.3
178.1
19.8
2,119.0
162.4
1,956.6
635.3
722.8
366.2
232.3
2,692.5
542.8
365.3
177.5
18.7
2,131.0
162.9
1,968.1
631.9
733.9
371.4
231.0
2,695.7
542.4
366.4
176.1
18.3
2,135.0
158.0
1,977.1
630.3
737.5
375.5
233.7
237.5
33.8
28.7
89.8
246.3
34.5
30.3
92.3
216.1
31.5
27.5
76.4
227.4
27.7
26.6
89.1
211.5
30.9
26.8
75.9
215.8
33.4
26.9
78.8
248.3
27.8
27.9
107.6
214.2
27.9
27.6
78.7
211.7
30.6
27.4
75.2
212.0
28.7
28.5
77.4
219.6
31.7
28.0
82.6
32.4
52.8
34.4
54.8
28.7
52.0
33.3
50.7
28.8
49.0
28.5
48.3
34.9
50.2
29.6
50.5
28.8
49.7
29.7
47.7
29.0
48.3
ALL COMMERCIAL BANKING
INSTITUTIONS2
1 Loans and securities
2 Investment securities
3
U.S. government securities
4
Other
5 Trading account assets
6 Total loans
7
Interbank loans
8
Loans excluding interbank
9
Commercial and industrial
10
Real estate
11
Individual
12
All other
13 Total cash assets
14 Reserves with Federal Reserve Banks.
15 Cash in vault
16 Cash items in process of collection . . .
17 Demand balances at U.S. depository
institutions
18 Other cash assets
200.7
200.0
194.6
191.4
194.1
200.7
206.8
198.7
201.1
199.6
203.9
20 Total assets/total liabilities and capital
19 Other assets
3,029.7
3,047.9
2,997.8
3,042.8
3,032.7
3,039.5
3,114.9
3,073.6
3,090.0
3,104.0
3,119.3
21
22
23
24
25
26
27
2,125.8
628.6
541.1
956.1
479.0
229.0
195.9
2,145.7
642.7
535.6
967.5
473.1
233.7
195.3
2,097.1
586.6
528.8
981.7
493.6
209.1
198.0
2,125.2
602.6
527.3
995.3
502.9
216.5
198.2
2,123.7
583.2
523.2
1,017.3
483.6
223.9
201.4
2,134.2
594.5
512.0
1,027.6
486.7
217.4
201.2
2,182.6
628.5
509.7
1,044.3
510.6
218.6
203.2
2,138.2
580.5
507.4
1,050.2
512.7
218.4
204.4
2,152.0
579.4
514.0
1,058.6
510.2
223.1
204.7
2,166.6
583.4
518.9
1,064.4
504.6
226.3
206.5
2,175.3
588.5
520.7
1,066.1
516.5
221.4
206.1
361.0
359.4
364.4
366.2
372.1
369.5
372.3
374.4
373.5
377.5
378.5
196.7
193.4
190.5
189.7
188.8
186.6
188.0
185.4
184.6
184.0
182.3
2,389.8
507.1
329.9
177.1
24.8
1,858.0
139.7
1,718.3
498.7
647.7
354.9
217.0
2,391.9
507.2
333.2
174.0
19.2
1,865.4
133.1
1,732.3
500.6
654.3
361.1
216.3
2,385.1
507.0
334.5
172.6
21.5
1,856.6
131.4
1,725.2
498.9
657.7
360.5
208.1
2,405.9
509.0
338.1
171.0
20.1
1,876.8
138.9
1,737.8
503.4
661.7
358.0
214.7
2,407.8
513.1
342.7
170.4
21.8
1,872.8
122.3
1,750.5
506.1
669.8
357.7
216.9
2,407.8
513.8
344.1
169.7
17.8
1,876.2
120.2
1,756.0
511.3
676.0
361.4
207.3
2,446.0
516.1
345.9
170.2
19.2
1,910.6
131.5
1,779.2
515.5
683.2
363.5
217.0
2,439.9
517.3
349.5
167.8
18.2
1,904.5
119.3
1,785.1
511.6
691.6
365.6
216.3
2,452.1
514.2
347.8
166.5
19.8
1,918.1
126.4
1,791.7
515.6
698.2
365.8
212.0
2,467.6
519.4
353.5
165.9
18.7
1,929.4
127.0
1,802.5
512.8
708.7
371.1
209.9
2,473.6
519.0
354.5
164.5
18.3
1,936.3
125.1
1,811.2
510.4
712.2
375.2
213.5
216.6
32.6
28.6
89.0
223.1
33.1
30.3
91.4
193.5
30.1
27.4
75.6
206.4
26.6
26.6
88.1
191.4
29.5
26.8
75.1
195.3
30.7
26.8
77.9
227.0
26.7
27.9
106.6
192.3
26.6
27.6
77.7
190.1
29.6
27.4
74.4
191.7
27.0
28.5
76.5
197.6
29.5
28.0
81.3
30.5
35.8
32.4
35.9
26.8
33.6
31.2
33.9
26.6
33.4
26.8
33.1
32.9
33.0
27.5
32.9
27.0
31.7
28.0
31.7
27.3
31.6
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 B A N K S 3
30 Loans and securities
31 Investment securities
32
U.S. government securities
33
Other
34 Trading account assets
35 Total loans
36
Interbank loans
37
Loans excluding interbank
38
Commercial and industrial
39
Real estate
40
Individual
41
All other
42 Total cash assets
43 Reserves with Federal Reserve Banks.
44 Cash in vault
45 Cash items in process of collection . . .
46 Demand balances at U.S. depository
institutions
47 Other cash assets
132.2
135.6
128.1
129.6
130.6
134.6
133.6
131.6
128.4
127.5
131.5
49 Total assets/liabilities and capital
2,738.6
2,750.5
2,706.7
2,741.8
2,729.9
2,737.7
2,806.6
2,763.9
2,770.6
2,786.7
2,802.8
50
51
52
53
54
55
56
2,056.3
618.7
538.6
899.0
366.1
123.8
192.4
2,073.0
632.9
533.1
907.0
363.7
122.0
191.8
2,026.1
577.4
526.4
922.3
377.1
109.0
194.5
2,052.7
593.5
524.8
934.4
378.7
115.8
194.6
2,047.4
574.1
520.7
952.6
362.8
121.7
197.9
2,056.2
584.8
509.4
961.9
368.2
115.6
197.7
2,103.0
618.7
507.1
977.2
383.0
120.9
199.7
2,058.8
571.2
504.8
982.9
387.3
116.9
200.8
2,071.3
570.2
511.3
989.9
380.2
117.8
201.2
2,086.9
574.7
516.2
995.9
375.5
121.3
203.0
2,094.5
578.8
517.9
997.7
390.8
114.9
202.6
39.7
608.0
40.1
614.2
40.7
617.0
41.7
620.0
42.5
627.3
43.4
632.6
44.3
638.9
45.3
646.2
45.7
652.5
46.4
662.3
47.1
665.0
48 Other assets
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
MEMO
57 Real estate loans, revolving
58 Real estate loans, other
1. Back data are available from the Banking and Monetary Statistics section.
Board of Governors of the Federal Reserve System, Washington, D.C., 20551.
These data also appear in the Board's weekly H.8 (510) release.
Figures are partly estimated. They include all bank-premises subsidiaries and
other significant majority-owned domestic subsidiaries. Loan and securities data
for domestically chartered commercial banks are estimates for the last Wednesday of the month based on a sample of weekly reporting banks and quarter-end
condition report data. Data for other banking institutions are estimates made for
the last Wednesday of the month based on a weekly reporting sample of
foreign-related institutions and quarter-end condition reports.
2. Commercial banking institutions include insured domestically chartered
commercial banks, branches and agencies of foreign banks, Edge Act and
Agreement corporations, and New York State foreign investment corporations.
3. Insured domestically chartered commercial banks include all member banks
and insured nonmember banks.
Weekly Reporting Commercial Banks
A19
1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS 1
Millions of dollars, Wednesday figures
1989
Account
Aug.
2r
116,632
1 Cash and balances due from depository institutions
2 Total loans, leases, and securities, net
1,221,709
142,596
3 U.S. Treasury and government agency
4 Trading account
12,858
129,738
5 Investment account
61,006
6 Mortgage-backed securities
All other maturing in
20,356
7
One year or less
38,748
8
Over one through five years
9,627
9
Over five years
70,322
10 Other securities
1,165
11 Trading account
69,157
12 Investment account
41,720
States and political subdivisions, by maturity
13
4,785
14
One year or less
36,935
15
Over one year
27,436
16
Other bonds, corporate stocks, and securities
4,829
17 Other trading account assets
66,027
18 Federal funds sold4
45,851
19 To commercial banks
13,744
20 To nonbank brokers and dealers in securities
6,432
21 To others
974,846
22 Other loans and leases, gross
950,058
23 Other loans, gross
317,999
Commercial and industrial
24
1,934
25
Bankers acceptances and commercial paper
316,065
26
All other
314,373
27
U.S. addressees
1,691
28
Non-U.S. addressees
29
336,570
Real estate loans
24,960
Revolving, home equity
30
311,610
31
All other
170,041
32
To individuals for personal expenditures
49,416
33
To depository and financial institutions
21,397
34
Commercial banks in the United States
35
5,486
Banks in foreign countries
22,533
36
Nonbank depository and other financial institutions ..
16,900
37
For purchasing and carrying securities
5,964
38
To finance agricultural production
26,589
39
To states and political subdivisions
1,544
40
To foreign governments and official institutions
25,034
41
All other
24,788
42 Lease financing receivables
43 LESS: Unearned income
4,853
32,058
44
Loan and lease reserve
45 Other loans and leases, net
937,935
127,440
46 All other assets
1,465,781
47 Total assets
234,222
48 Demand deposits
185,705
49 Individuals, partnerships, and corporations
6,961
50 States and political subdivisions
1,869
51
U.S. government
21,916
52 Depository institutions in the United States
6,403
53 Banks in foreign countries
804
54 Foreign governments and official institutions
10,563
55 Certified and officers' checks
75,886
56 Transaction balances other than demand deposits
685,266
57 Nontransaction balances
646,160
58 Individuals, partnerships, and corporations
29,903
59 States and political subdivisions
934
60 U.S. government
7,620
61 Depository institutions in the United States
649
62
Foreign governments, official institutions, and banks . .
63 Liabilities for borrowed money
283,179
0
64 Borrowings from Federal Reserve Banks
10,107
65 Treasury tax-and-loan notes
273,071
66 All other liabilities for borrowed money
85,771
67 Other liabilities and subordinated notes and debentures ..
1,364,323
68 Total liabilities
101,458
69 Residual (total assets minus total liabilities)7
MEMO
70
71
72
73
74
75
76
77
8
Total loans and leases (gross) and investments adjusted . 1,191,372
973,624
Total loans and leases (gross) adjusted
218,324
Time deposits in amounts of $100,000 or more
17,656
U.S. Treasury securities maturing in one year or less
1,585
Loans sold outright to affiliates—total
1,244
Commercial and industrial
341
Other
252,725
Nontransaction savings deposits (including MMDAs)
Aug. 9'
Aug. 16r
Aug. 23r
Aug. 3<y
Sept. 6
Sept. 13
Sept. 20
Sept. 27
105,058
1,222,336
143,518
13,809
129,709
61,125
110,555
1,227,773
145,101
15,086
130,015
62,405
103,926
1,224,929
145,558
13,979
131,579
63,791
104,331
1,221,597
143,784
12,200
131,584
63,713
118,718
1,237,403
144,871
13,474
131,397
63,667
110,729
1,222,800
144,456
13,260
131,196
64,502
117,382
1,235,452
144,905
12,784
132,120
64,722
111,758
1,223,219
144,135
12,103
132,031
65,741
20,471
38,608
9,505
70,488
1,252
69,236
41,680
4,770
36,909
27,557
5,021
67,166
46,915
14,932
5,319
972,956
947,702
317,830
2,022
315,807
314,163
1,644
337,342
25,090
312,251
170,306
48,294
21,623
4,539
22,132
16,281
5,947
26,500
1,511
23,692
25,253
4,867
31,945
936,144
127,888
1,455,283
216,335
174,801
5,066
1,709
19,140
5,749
763
9,106
76,135
686,070
646,633
30,300
905
7,578
654
288,290
700
4,176
283,413
86,731
1,353,560
101,722
20,280
38,927
8,402
70,252
983
69,269
41,586
4,806
36,780
27,683
5,502
68,348
48,776
13,923
5,649
975,389
950,007
316,338
2,099
314,239
312,548
1,692
338,762
25,256
313,506
170,874
48,329
21,664
4,320
22,345
17,113
5,945
26,555
1,649
24,441
25,381
4,877
31,942
938,570
124,494
1,462,822
227,120
182,420
5,645
3,570
20,082
5,770
726
8,908
75,651
686,388
646,966
30,351
905
7,516
650
286,610
0
14,255
272,355
85,087
1,360,857
101,965
20,365
38,467
8,956
70,180
845
69,335
41,588
4,842
36,747
27,746
5,436
65,619
46,290
12,799
6,529
974,988
949,642
316,592
2,077
314,515
312,845
1,670
339,700
25,373
314,328
170,821
47,736
21,783
4,415
21,538
17,368
5,906
26,506
1,592
23,421
25,346
4,875
31,978
938,136
122,006
1,450,861
208,480
166,645
5,655
3,040
18,653
5,639
818
8,030
73,860
687,215
647,159
30,908
901
7,602
645
291,616
2,269
14,152
275,195
87,714
1,348,886
101,975
20,453
37,810
9,607
70,560
856
69,703
41,562
4,874
36,689
28,140
5,676
63,375
45,418
12,447
5,509
974,891
949,526
316,509
2,212
314,297
312,710
1,587
341,081
25,527
315,554
171,422
46,890
20,739
4,336
21,815
16,284
5,873
26,506
1,584
23,377
25,366
4,893
31,795
938,203
121,558
1,447,486
214,943
172,079
5,182
3,083
19,472
6,113
677
8,336
73,456
686,806
647,272
30,631
659
7,596
648
282,519
0
15,812
266,707
87,621
1,345,344
102,141
20,299
37,539
9,892
70,339
792
69,547
41,408
4,873
36,535
28,139
6,065
71,050
51,473
12,517
7,059
981,738
956,366
318,146
2,198
315,947
314,317
1,630
342,592
25,608
316,984
171,751
47,751
20,890
4,392
22,469
17,520
5,850
26,374
1,533
24,849
25,372
4,858
31,802
945,078
126,253
1,482,375
236,234
185,681
5,905
4,595
23,643
6,078
940
9,392
77,7%
689,928
650,820
30,065
888
7,503
652
287,884
55
4,027
283,802
87,228
1,379,069
103,306
19,942
37,155
9,596
70,240
836
69,403
41,375
4,876
36,499
28,028
6,022
62,096
41,175
14,234
6,686
975,812
950,399
314,936
2,116
312,820
311,242
1,578
341,146
25,771
315,374
172,578
47,054
20,266
4,618
22,170
17,159
5,834
26,208
1,586
23,898
25,412
4,889
30,935
939,988
128,060
1,461,590
221,539
179,676
5,198
2,202
19,078
6,552
537
8,296
75,996
689,604
650,573
30,189
858
7,342
641
287,242
0
8,167
279,075
84,097
1,358,478
103,111
20,079
37,132
10,187
70,033
856
69,177
41,274
4,861
36,412
27,904
5,487
69,415
48,554
13,795
7,066
981,445
955,806
316,989
2,094
314,895
313,001
1,894
342,302
25,915
316,386
173,104
46,404
19,880
4,415
22,110
18,871
5,775
26,166
1,656
24,537
25,639
4,900
30,934
945,611
122,256
1,475,089
223,381
174,561
6,142
6,097
20,449
6,217
859
9,056
73,890
687,077
648,556
29,714
880
7,274
652
302,948
370
24,889
277,689
85,299
1,372,596
102,493
18,723
36,882
10,685
69,797
914
68,883
41,220
4,818
36,402
27,662
5,296
63,022
43,942
12,668
6,412
977,533
951,909
314,697
2,143
312,554
310,780
1,774
342,740
26,053
316,688
173,382
46,386
19,986
4,811
21,590
16,699
5,720
26,222
1,649
24,412
25,624
4,904
31,660
940,970
125,232
1,460,210
222,501
175,734
6,415
3,113
19,506
7,049
973
9,711
72,787
687,094
648,506
29,859
872
7,196
661
293,136
0
25,038
268,098
82,809
1,358,327
101,882
1,190,610
971,583
219,291
17,976
1,643
1,302
341
253,358
1,194,152
973,297
219,051
16,785
1,679
1,342
337
254,008
1,193,708
972,534
219,940
16,918
1,698
1,371
327
253,496
1,192,127
972,108
219,564
16,697
1,702
1,374
328
253,369
1,201,700
980,425
219,066
16,305
1,674
1,346
328
257,098
1,197,182
976,465
218,837
16,991
1,598
1,270
327
256,700
1,202,852
982,426
218,005
17,118
1,634
1,312
322
254,516
1,195,855
976,627
217,552
16,427
1,670
1,329
340
255,211
1. Beginning Jan. 6, 1988, the "Large bank" reporting group was revised
somewhat, eliminating some former reporters with less than $2 billion of assets
and adding some new reporters with assets greater than $3 billion.
2. For adjustment bank data see this table in the March 1989 Bulletin. The
adjustment data for 1988 should be added to the reported data for 1988 to establish
comparability with data reported for 1989.
3. Includes U.S. government-issued or guaranteed certificates of participation
in pools of residential mortgages.
4. Includes securities purchased under agreements to resell.
5. Includes allocated transfer risk reserve.
6. Includes federal funds purchased and securities sold under agreements to
repurchase; for information on these liabilities at banks with assets of $1 billionor
more on Dec. 31, 1977, see table 1.13.
7. This is not a measure of equity capital for use in capital-adequacy analysis or
for other analytic uses.
8. Exclusive of loans and federal funds transactions with domestic commercial
banks.
9. Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
A20
1.28
DomesticNonfinancialStatistics • December 1989
ASSETS A N D LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL B A N K S
IN NEW YORK CITY 1
Millions of dollars, Wednesday figures
1989
Account
Aug. 2
1
Cash balances due from depository institutions
2
Total loans, leases, and securities, net2
Aug. 9
Aug. 16
Aug. 23
Aug. 3 0
Sept. 6
Sept. 13
Sept. 20
Sept. 27
26,886
23,211
26,743
24,173'
20,658
24,680
21,990
28,005
26,341
212,828
214,544
213,553
216,238'
213,405
219,579
212,867
221,294
211,911
0
0
15,762
8,213
0
0
15,862
8,324
0
0
15,715
8,183
0
0
15,687
8,102
0
0
15,670
8,136
0
0
15,552
8,224
0
0
15,584
8,251
0
0
15,294
7,574
0
0
14,753
7,567
2,864
3,110
1,575
0
0
16,636
10,116
1,051
9,066
6,520
0
2,930
3,088
1,520
0
0
16,687
10,082
1,031
9,050
6,605
0
2,866
3,245
1,421
0
0
16,706
10,037
1,090
8,947
6,670
0
2,914
3,247
1,424
0
0
16,762
10,035
1,103
8,932
6,726
0
2,865
3,246
1,424
0
0
17,014
10,084
1,130
8,954
6,930
0
2,670
3,235
1,423
0
0
16,977
10,005
1,145
8,860
6,971
0
2,673
3,236
1,423
0
0
16,909
9,952
1,156
8,795
6,957
0
3,025
3,272
1,423
0
0
16,814
9,834
1,125
8,709
6,980
0
2,498
3,265
1,422
0
0
16,796
9,782
1,075
8,707
7,014
0
7
8
9
10
11
12
13
14
15
16
17
Securities
U.S. Treasury and government agency 3
Trading account
Investment account
Mortgage-backed securities 4
All other maturing in
One year or less
Over one through five years
Over five years
Other securities 3
Trading account 3
Investment account
States and political subdivisions, by maturity
One year or less
Over one year
Other bonds, corporate stocks, and securities
Other trading account assets 3
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Loans and leases
Federal funds sold5
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
All other assets
17,160
9,206
4,462
3,492
177,060
171,403
58,910
506
58,404
57,831
573
55,632
3,596
52,036
19,649
20,291
8,446
3,960
7,885
5,873
149
5,852
395
4,653
5,657
1,719
12,071
163,269
51,511
19,397
12,082
4,733
2,581
176,440
170,815
58,547
485
58,062
57,528
534
55,942
3,610
52,332
19,716
19,263
8,852
3,077
7,334
6,013
153
5,837
372
4,972
5,625
1,734
12,108
162,598
54,699
18,539
10,965
4,642
2,932
176,447
170,801
58,350
551
57,799
57,219
580
56,312
3,622
52,690
19,819
18,600
8,464
2,818
7,318
6,349
136
5,940
513
4,782
5,646
1,744
12,110
162,593
52,942
21,023
13,879
4,408
2,735
176,621'
170,984'
58,894
526
58,368
57,860
508
56,759'
3,635
53,124'
19,912
18,157
8,234
2,810
7,113
6,468
141
5,934
452
4,266
5,637'
1,737
12,117'
162,766'
49,898'
18,644
11,004
4,573
3,067
175,931
170,304
58,351
555
57,796
57,280
516
57,306
3,655
53,651
19,883
17,583
7,520
2,814
7,250
6,239
144
5,919
456
4,421
5,627
1,749
12,106
162,076
49,638
21,178
12,746
4,682
3,750
179,498
173,882
59,801
530
59,271
58,787
484
58,180
3,667
54,513
19,775
17,972
7,906
2,785
7,281
7,049
144
5,938
413
4,609
5,616
1,735
11,891
165,872
52,974
15,972
7,403
4,945
3,624
178,111
172,468
58,619
525
58,094
57,615
480
58,766
3,682
55,084
19,848
17,828
7,463
3,126
7,239
6,409
134
5,928
427
4,509
5,643
1,759
11,949
164,403
51,433
21,380
13,377
4,092
3,912
181,507
175,826
59,278
461
58,817
58,079
738
59,052
3,699
55,353
20,017
18,375
8,156
2,788
7,431
7,468
136
5,926
530
5,043
5,681
1,768
11,934
167,805
45,745
15,675
8,544
3,988
3,142
179,244
173,575
58,343
544
57,799
57,161
638
59,130
3,717
55,413
20,086
18,333
7,958
3,248
7,127
6,186
134
5,938
523
4,903
5,669
1,770
12,786
164,688
47,114
47
Total assets
291,225
292,454
293,238
290,309'
283,701
297,233
286,290
295,044
285,366
3
4
5
6
54,126
37,002
894
226
5,615
5,129
637
4,622
49,537
35,062
617
216
4,926
4,527
625
3,565
51,908
37,633
695
780
4,078
4,587
582
3,553
47,267
32,948
530
594
5,041
4,423
651
3,078
47,605
32,976
423
594
5,281
4,944
472
2,915
51,504
35,787
757
885
4,812
4,723
794
3,746
48,315
34,536
618
200
4,379
5,264
379
2,940
51,800
35,283
643
1,018
5,465
4,852
620
3,919
53,430
36,296
836
572
4,764
5,735
801
4,427
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 8
Other liabilities and subordinated notes and debentures
8,407
113,833
103,590
7,708
30
2,253
251
57,522
0
2,882
54,639
28,515
8,271
113,232
102,943
7,736
30
2,257
266
63,750
700
1,172
61,877
28,742
8,175
113,407
103,125
7,733
30
2,255
263
62,808
0
3,564
59,244
27,951
8,013
113,045
102,597
7,853
30
2,300
265
64,406
1,700
3,277
59,428
28,691'
8,095
113,216
102,889
7,775
33
2,264
254
58,444
0
3,876
54,568
27,726
8,375
113,437
103,428
7,478
29
2,246
256
65,984
0
868
65,116
29,200
8,399
113,350
103,386
7,400
28
2,268
266
62,262
0
1,810
60,452
24,786
8,140
112,839
102,982
7,318
29
2,239
271
64,063
0
6,020
58,043
29,342
7,998
112,107
102,187
7,389
29
2,223
279
59,378
0
5,932
53,445
24,759
68
Total liabilities
262,402
263,532
264,248
261,422'
255,085
268,501
257,112
266,184
257,673
69
Residual (total assets minus total liabilities)9
28,824
28,922
28,989
28,887'
28,616
28,733
29,177
28,859
27,693
208,967
176,568
42,204
2,742
207,452
174,902
42,856
2,821
207,978
175,557
42,770
2,826
207,978'
175,530'
42,556
2,835
208,736
176,051
42,365
2,788
212,553
180,024
42,754
2,552
211,709
179,217
42,508
2,590
213,463
181,355
42,423
2,880
209,966
178,417
41,649
2,498
48
49
50
51
52
53
54
55
56
MEMO
70
71
72
73
Total loans and leases (gross) and investments adjusted
Total loans and leases (gross) adjusted 10
Time deposits in amounts of $100,000 or more
U.S. Treasury securities maturing in one year or less
2,10
1. These data also appear in the Board's H.4.2 (504) release. For address, see
inside front cover.
2. Excludes trading account securities.
3. Not available due to confidentiality.
4. Includes U.S. government-issued or guaranteed certificates of participation
in pools of residential mortgages.
5. Includes securities purchased under agreements to resell.
6. Includes allocated transfer risk reserve.
http://fraser.stlouisfed.org/
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
1989
Account
1 Cash and due from depository institutions . . .
2 Total loans and securities
3 U.S. Treasury and government agency
securities
4 Other securities
5 Federal funds sold
6 To commercial banks in the United States .
7 To others
8 Other loans, gross
9 Commercial and industrial
Bankers acceptances and commercial
10
paper
11
All other
12
U.S. addressees
13
Non-U.S. addressees
14 Loans secured by real estate
15 To financial institutions
Commercial banks in the United States..
16
17
Banks in foreign countries
Nonbank financial institutions
18
19 To foreign governments and official
institutions
20 For purchasing and carrying securities
21 All other 3
22 Other assets (claims on nonrelated parties) ..
23 Net due from related institutions
24 Total assets
25 Deposits or credit balances due to other
than directly related institutions
26 Transaction accounts and credit balances .
27
Individuals, partnerships, and
corporations
28
Other
29 Nontransaction accounts 5
Individuals, partnerships, and
30
corporations
Other
31
Borrowings from other than directly
32
related institutions
33 Federal funds purchased
34
From commercial banks in the
United States
35
From others
36 Other liabilities for borrowed money
37
To commercial banks in the
United States
38
To others
39 Other liabilities to nonrelated parties
40 Net due to related institutions
41 Total liabilities
Aug. 2
Aug. 9
Aug. 16
Aug. 23
Aug. 30
Sept. 6
Sept. 13
Sept. 20
Sept. 27
11,571
136,085
12,502'
137,5^
12,393'
137,437'
12,458'
137,668'
11,345'
138,376'
12,271
138,202
11,342
138,782
13,100
136,509
12,184
136,163
7,936
6,047
5,970
4,658
1,312
116,132
73,476
8,089
6,088
6,506
5,338
1,168
116,836'
73,347'
8,396'
5,791'
4.492
2,962
1,530
118,758'
74,581'
8,226
5,815
6,781
5,707
1,074
116,846'
73,298
7,911
5,899
7,769
6,630
1,139
116,797'
73,193
8,194
5,882
7,377
6,149
1,228
116,749
74,065
7,896
5,859
8,155
6,696
1,459
116,872
73,838
7,967
5,908
6,269
5,112
1,157
116,365
73,302
8,000
5,985
5,923
4,820
1,103
116,255
73,563
1,533
71,943
70,079
1,864
15,604
22,584
17,233
1,409
3,942
1,807'
71,540
69,695
1,845
16,142
22,656
17,254
1,314
4,088
1,824'
72,757
70,885
1,872
16,326
23,022
17,276
1,594
4,152
1,794
71,504
69,644
1,860
16,573
22,514'
16,787'
1,590
4,137
1,781
71,412
69,590
1,822
16,552
22,889'
17,090^
1,657
4,142
2,065
72,000
70,160
1,840
16,408
21,666
16,297
1,380
3,989
1,887
71,951
70,088
1,863
16,282
22,431
17,040
1,249
4,142
1,852
71,450
69,616
1,834
16,422
22,134
16,980
1,035
4,119
2,119
71,444
69,659
1,785
16,452
22,295
16,998
1,064
4,233
632
2,168
1,668
35,273
14,310
197,240
623
2,050
2,018
35,767
12,951
198,736
639
2,404
1,786
35,171
15,459
200,460
636
2,203
1,622
35,166
14,038
199,330
629
1,775
1,759
35,828
13,046
198,597
636
2,292
1,682
35,258
15,760
201,492
628
1,996
1,697
35,999
13,855
199,979
647
2,216
1,644
35,242
14,783
199,633
630
1,626
1,689
35,721
13,700
197,768
49,792
3,535
50,161
3,151
51,042
3,741'
49,959
3,371'
49,768
3,223'
50,133
3,300
50,212
3,513
49,661
3,567
50,483
3,915
2,182
1,353
46,257
1,994
1,157
47,010
2,177
1,564'
47,301'
2,119
1,252'
46,588'
2,020
1,203'
46,545'
2,146
1,154
46,833
2,135
1,378
46,699
2,106
1,461
46,094
2,181
1,734
46,568
38,749
7,508
38,939
8,071
38,762'
8,539
38,728'
7,860
38,595'
7,950
38,365
8,468
38,331
8,368
38,118
7,976
38,566
8,002
88,163
42,046
85,625
37,070
87,961
38,044
87,881
38,992
84,538
35,462
89,018
40,597
87,127
36,761
87,119
37,984
82,006
32,216
21,884
20,162
46,117
18,945
18,125
48,555
19,941
18,103
49,917
20,380
18,612
48,889
18,200
17,262
49,076
22,417
18,180
48,421
18,089
18,672
50,366
18,465
19,519
49,135
17,300
14,916
49,790
29,547
16,570
36,632
22,653
197,240
32,742
15,813
37,815
25,133
198,736
33,666
16,251
36,536
24,918
200,460
33,634
15,255
36,331
25,159
199,330
33,570
15,506
37,139
27,153
198,597
32,012
16,409
36,391
25,948
201,492
33,915
16,451
37,033
25,606
199,979
32,610
16,525
36,315
26,536
199,633
33,196
16,594
37,206
28,073
197,768
114,194
100,211
114,927'
100,750'
117,199'
103,012'
115,174
101,133
114,656
100,846
115,756
101,680
115,046
101,291
114,417
100,542
114,345
100,360
MEMO
42 Total loans (gross) and securities adjusted 7 ..
43 Total loans (gross) adjusted
1. Effective Jan. 4,1989, the reporting panel includes a new group of large U.S.
branches and agencies of foreign banks. Earlier data included 65 U.S. branches
and agencies of foreign banks that included those branches and agencies with
assets of $750 million or more on June 30, 1980, plus those branches and agencies
that had reached the $750 million asset level on Dec. 31, 1984. These data also
appear in the Board's H.4.2 (504) release. For address, see inside front cover.
2. Includes securities purchased under agreements to resell.
3. Effective Jan. 4, 1989, loans secured by real estate are being reported as a
separate component of Other loans, gross. Formerly, these loans were included in
"All other", line 21.
4. Includes credit balances, demand deposits, and other checkable deposits.
5. Includes savings deposits, money market deposit accounts, and time
deposits.
6. Includes securities sold under agreements to repurchase.
7. Exclusive of loans to and federal funds sold to commercial banks in the
United States.
A22
DomesticNonfinancialStatistics • December 1989
1.31 GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations1
Billions of dollars, estimated daily-average balances, not seasonally adjusted
Commercial banks
1988
Type of holder
1984
Dec.
1985
Dec.
1986
Dec.
1989
1987
Dec.
Mar.
June
Sept.
Dec.
Mar.
June
1 All holders—Individuals, partnerships, and
corporations
302.7
321.0
363.6
343.5
328.6
346.5
337.8
354.7
330.4
329.3
2
3
4
5
6
31.7
166.3
81.5
3.6
19.7
32.3
178.5
85.5
3.5
21.2
41.4
202.0
91.1
3.3
25.8
36.3
191.9
90.0
3.4
21.9
33.9
184.1
86.9
3.5
20.3
37.2
194.3
89.8
3.4
21.9
34.8
190.3
87.8
3.2
21.7
38.6
201.2
88.3
3.7
22.8
36.3
182.2
87.4
3.7
20.7
33.0
185.9
86.6
2.9
21.0
Financial business
Nonfinancial business
Consumer
Foreign
Other
Weekly reporting banks
1988
1984
Dec.
7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
1985
Dec.
1989
1987
Dec.
Mar.
June
Sept.
Dec.
Mar.
June
157.1
168.6
195.1
183.8
181.8
191.5
185.3
198.3
181.9
182.2
25.3
87.1
30.5
3.4
10.9
25.9
94.5
33.2
3.1
12.0
32.5
106.4
37.5
3.3
15.4
28.6
100.0
39.1
3.3
12.7
27.0
98.2
41.7
3.4
11.4
30.0
103.1
42.3
3.4
12.8
27.2
101.5
41.8
3.1
11.7
30.5
108.7
42.6
3.6
12.9
27.2
98.6
41.1
3.3
11.7
25.4
99.8
42.4
2.9
11.7
1. Figures include cash items in process of collection. Estimates of gross
deposits are based on reports supplied by a sample of commercial banks. Types
of depositors in each category are described in the June 1971 BULLETIN, p. 466.
Figures may not add to totals because of rounding.
2. Beginning in March 1984, these data reflect a change in the panel of weekly
reporting banks, and are not comparable to earlier data. Estimates in billions of
dollars for December 1983 based on the new weekly reporting panel are: financial
business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1; other
9.5.
3. Beginning March 1985, financial business deposits and, by implication, total
gross demand deposits have been redefined to exclude demand deposits due to
thrift institutions. Historical data have not been revised. The estimated volume of
such deposits for December 1984 is $5.0 billion at all insured commercial banks
and $3.0 billion at weekly reporting banks.
1986
Dec.
4. Historical data back to March 1985 have been revised to account for
corrections of bank reporting errors. Historical data before March 1985 have not
been revised, and may contain reporting errors. Data for all commercial banks for
March 1985 were revised as follows (in billions of dollars): all holders, - . 3 ;
financial business, - . 8 ; nonfinancial business, - . 4 ; consumer, .9; foreign, .1;
other, - . 1 . Data for weekly reporting banks for March 1985 were revised as
follows (in billions of dollars): all holders, - . 1 ; financial business, - . 7 ; nonfinancial business, - . 5 ; consumer, 1.1; foreign, .1; other, —.2.
5. Beginning March 1988, these data reflect a change in the panel of weekly
reporting banks, and are not comparable to earlier data. Estimates in billions of
dollars for December 1987 based on the new weekly reporting panel are: financial
business, 29.4; nonfinancial business, 105.1; consumer, 41.1; foreign, 3.4; other,
13.1.
Financial Markets
A23
1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1989
1984
Dec.
Instrument
1985
Dec.
1987
Dec.
1986
Dec.
1988
Dec.
Feb.
Mar.
Apr.
May
June
July
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
2
3
4
5
6
Financial companies'
Dealer-placed paper
Total
Bank-related (not seasonally
adjusted)
Directly placed paper
Total
Bank-related (not seasonally
adjusted)
^
Nonfinancial companies
237,586
298,779
329,991
357,129
455,017
487,771
492,821
494,292
497,369
503,445
506,418
56,485
78,443
101,072
101,958
159,947
173,944
172,950
170,549
167,795
167,681
179,354
2,035
1,602
2,265
1,428
1,248
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
110,543
135,320
151,820
173,939
192,442
201,997
205,374
207,231
206,497
211,020
205,847
42,105
70,558
44,778
85,016
40,860
77,099
43,173
81,232
43,155
102,628
n.a.
111,830
n.a.
114,497
n.a.
116,512
n.a.
123,077
n.a.
124,744
n.a.
121,217
Bankers dollar acceptances (not seasonally adjusted) 6
7 Total
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others
Basis
14 Imports into United States
15 Exports from United States
16 All other
8
9
10
11
12
13
78,364
68,413
64,974
70,565
66,631
62,812
62,458
64,357
62,396
64,182
65,558
9,811
8,621
1,191
11,197
9,471
1,726
13,423
11,707
1,716
10,943
9,464
1,479
9,086
8,022
1,064
9,401
8,497
904
8,336
7,642
693
9,616
8,107
1,509
8,908
8,115
794
9,333
8,399
934
9,370
8,279
1,076
0
671
67,881
0
937
56,279
0
1,317
50,234
0
965
58,658
0
1,493
56,052
0
1,579
51,832
0
1,544
52,579
0
1,400
53,340
0
1,374
52,113'"
0
1,177
53,672
0
1,026
55,163
17,845
16,305
44,214
15,147
13,204
40,062
14,670
12,960
37,344
16,483
15,227
38,855
14,984
14,410
37,237
15,588
13,927
33,297
14,755
13,581
34,122
15,234
14,371
34,752
14,900
14,452
33,044
15,477
15,040
33,666
15,231
15,288
35,040
1. Institutions engaged primarily in activities such as, but not limited to,
commercial savings, and mortgage banking; sales, personal, and mortgage financing; factoring, finance leasing, and other business lending; insurance underwriting; and other investment activities.
2. Includes all financial company paper sold by dealers in the open market.
3. Beginning January 1989, bank-related series have been discontinued.
4. As reported by financial companies that place their paper directly with
investors.
5. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
6. Beginning January 1988, the number of respondents in the bankers acceptance survey were reduced from 155 to 111 institutions—those with $100 million
or more in total acceptances. The new reporting group accounts for over 90
percent of total acceptances activity.
1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per year
Rate
—Mar. 7
Apr. 21
July 11......
Aug. 26...,
9.00
8.50
8.00
7.50
—Apr.
May
7.75
8.00
8.25
8.75
9.25
9.00
8.75
1
1
15
Sept. 4
Oct. 7
22
Nov. 5
2
11
14
11
28
8.50
9.00
9.50
10.00
10.50
—Feb. 10
24
June 5
July 31
11.00
—Feb.
May
July
Aug.
Nov.
Period
Average
rate
1986
1987
1988
8.33
8.21
9.32
1986 —Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct..
Nov.
Dec.
9.50
9.50
9.10
8.83
8.50
8.50
8.16
7.90
7.50
7.50
7.50
7.50
11.50
11.00
10.50
NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases.
For address, see inside front cover.
Period
1987—Jan. ...
Feb. ..
Mar. ..
Apr. ..
May ...
June ..
July ...
Aug. ..
Sept. ..
Oct. ...
Nov. ..
Dec. ..
Average
rate
7.50
7.50
7.50
7.75
8.14
8.25
8.25
8.25
8.70
9.07
8.78
8.75
Period
1988 —Jan.
Feb.
Mar.
Apr.
May.
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.
1989 —Jan.
Feb.
Mar.
Apr.
May.
June
July.
Aug.
Sept.
Oct..
A24
DomesticNonfinancialStatistics • December 1989
1.35 INTEREST RATES Money and Capital Markets
Averages, percent per year; weekly, monthly and annual figures are averages of business day data unless otherwise noted.
1989
Instrument
1986
1987
1989, week ending
1988
June
July
Aug.
Sept.
Sept. 1
Sept. 8
Sept. 15
Sept. 22
MONEY MARKET RATES
1 Federal funds 1 ' 2
,
2 Discount window borrowing1, ,3
Commercial paper •
3
1-month
4 3-month
5 6-month
Finance paper, directly placed 4,
6
1-month
7 3-month
8 6-month
Bankers acceptances ,6
9
3-month
10 6-month
Certificates of deposit, secondary market7
11
1-month
12 3-month
13 6-month
14 Eurodollar deposits, 3-month8
U.S. Treasury bills5
Secondary market 9
15 3-month
16 6-month
17
1-year
Auction average10
18 3-month
19 6-month
20
1-year
6.80
6.32
6.66
5.66
7.57
6.20
9.53
7.00
9.24
7.00
8.99
7.00
9.02
7.00
8.96
7.00
8.96
7.00
8.96
7.00
9.05
7.00
6.61
6.49
6.39
6.74
6.82
6.85
7.58
7.66
7.68
9.34
9.11
8.80
8.95
8.68
8.35
8.79
8.57
8.32
8.87
8.70
8.50
8.88
8.69
8.51
8.87
8.72
8.52
8.83
8.65
8.45
8.84
8.65
8.45
6.57
6.38
6.31
6.61
6.54
6.37
7.44
7.38
7.14
9.24
8.77
8.22
8.80
8.32
7.80
8.67
8.20
7.49
8.76
8.35
7.56
8.77
8.33
7.57
8.79
8.39
7.62
8.73
8.37
7.64
8.73
8.34
7.44
6.38
6.28
6.75
6.78
7.56
7.60
8.97
8.66
8.54
8.19
8.47
8.22
8.59
8.37
8.57
8.38
8.57
8.38
8.53
8.30
8.55
8.33
6.61
6.51
6.50
6.70
6.75
6.87
7.01
7.07
7.59
7.73
7.91
7.85
9.35
9.20
9.09
9.28
8.96
8.76
8.59
8.85
8.77
8.64
8.56
8.71
8.83
8.78
8.75
8.85
8.85
8.79
8.77
8.85
8.82
8.78
8.76
8.86
8.79
8.71
8.68
8.84
8.81
8.74
8.69
8.75
5.97
6.02
6.07
5.78
6.03
6.33
6.67
6.91
7.13
8.15
7.93
7.84
7.88
7.61
7.36
7.90
7.74
7.61
7.75
7.74
7.65
7.90
7.82
7.72
7.82
7.81
7.68
7.60
7.60
7.51
7.73
7.70
7.61
5.98
6.03
6.07
5.82
6.05
6.33
6.68
6.92
7.17
8.22
8.00
8.18
7.92
7.63
7.58
7.91
7.72
7.45
7.72
7.74
7.61
7.94
7.88
7.68
7.88
7.87
n.a.
7.64
7.64
n.a.
7.64
7.64
n.a.
6.45
6.86
7.06
7.30
7.54
7.67
7.84
7.78
6.77
7.42
7.68
7.94
8.23
8.39
n.a.
8.59
7.65
8.10
8.26
8.47
8.71
8.85
n.a.
8.96
8.44
8.41
8.37
8.29
8.31
8.28
n.a.
8.27
7.89
7.82
7.83
7.83
7.94
8.02
n.a.
8.08
8.18
8.14
8.13
8.09
8.11
8.11
n.a.
8.12
8.22
8.28
8.26
8.17
8.23
8.19
n.a.
8.15
8.32
8.41
8.37
8.26
8.29
8.25
n.a.
8.20
8.27
8.34
8.29
8.18
8.21
8.17
n.a.
8.11
8.07
8.15
8.11
8.07
8.14
8.13
n.a.
8.10
8.18
8.24
8.19
8.12
8.18
8.15
n.a.
8.14
8.14
8.64
8.98
8.40
8.19
8.26
8.31
8.36
8.27
8.25
8.30
6.95
7.76
7.32
7.14
8.17
7.63
7.36
7.83
7.68
6.79
7.27
7.02
6.69
7.17
6.96
6.67
7.03
7.06
6.97
7.26
7.26
6.65
7.07
7.16
6.75
7.07
7.15
6.95
7.13
7.16
6.96
7.40
7.33
9.71
9.02
9.47
9.95
10.39
9.91
9.38
9.68
9.99
10.58
10.18
9.71
9.94
10.24
10.83
9.50
9.10
9.29
9.59
10.03
9.34
8.93
9.14
9.42
9.87
9.36
8.96
9.14
9.45
9.88
9.41
9.01
9.23
9.51
9.91
9.45
9.05
9.24
9.55
9.96
9.42
9.02
9.21
9.51
9.94
9.39
8.98
9.21
9.48
9.88
9.39
8.98
9.21
9.48
9.88
9.61
9.95
10.20
9.65
9.54
9.55
9.55
9.58
9.55
9.49
9.56
8.76
3.48
8.37
3.08
9.23
3.64
8.96
3.44
8.81
3.38
8.75
3.28
8.82
3.29
8.89
3.25
8.83
3.26
8.80
3.30
8.82
3.28
CAPITAL MARKET RATES
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
U.S. Treasury notes and bonds 11
Constant maturities
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
Composite13
Over 10 years (long-term)
State and local notes and bonds
Moody's series14
Aaa
Baa
Bond Buyer series15
Corporate bonds
Seasoned issues16
All industries
Aaa
Aa
A
Baa
A-rated, recently offered utility
bonds 17
MEMO: Dividend/price ratio18
39 Preferred stocks
40 Common stocks
1. Weekly, monthly and annual figures are averages of all calendar days,
where the rate for a weekend or holiday is taken to be the rate prevailing on the
preceding business day. The daily rate is the average of the rates on a given day
weighted by the volume of transactions at these rates.
2. Weekly figures are averages for statement week ending Wednesday.
3. Rate for the Federal Reserve Bank of New York.
4. Unweighted average of offering rates quoted by at least five .dealers (in the
case of commercial paper), or finance companies (in the case of finance paper).
Before November 1979, maturities for data shown are 30-59 days, 90-119 days,
and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and
150-179 days for finance paper.
5. Yields are quoted on a bank-discount basis, rather than in an investment
yield basis (which would give a higher figure).
6. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quoted by the dealers).
7. Unweighted average of offered rates quoted by at least five dealers early in
the day.
8. Calendar week average. For indication purposes only.
9. Unweighted average of closing bid rates quoted by at least five dealers.
10. Rates are recorded in the week in which bills are issued. Beginning with the
Treasury bill auction held on Apr. 18, 1983, bidders were required to state the
percentage yield (on a bank discount basis) that they would accept to two decimal
places. Thus, average issuing rates in bill auctions will be reported using two
rather than three decimal places.
11. Yields are based on closing bid prices quoted by at least five dealers.
12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields
are read from a yield curve at fixed maturities. Based on only recently issued,
actively traded securities.
13. Averages (to maturity or call) for all outstanding bonds neither due nor
callable in less than 10 years, including one very low yielding "flower" bond.
14. General obligations based on Thursday figures; Moody's Investors Service.
15. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
16. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
17. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of
call protection. Weekly data are based on Friday quotations.
18. Standard and Poor's corporate series. Preferred stock ratio based on a
sample often issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
NOTE. These data also appear in the Board's H. 15 (519) and G.13 (415) releases.
For address, see inside front cover.
Financial Markets
1.36 STOCK MARKET
A23
Selected Statistics
1989
Indicator
1987
1986
1988
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
3
Transportation
Utility
4
5
Finance
6 Standard & Poor's Corporation
(1941-43 = 10)'
136.03
155.85
119.87
71.36
147.19
161.78
195.31
140.52'
74.29
146.48
149.97
180.83
134.09"
72.22
127.41
160.35
194.62
153.09"
75.87
132.26
165.08
200.00
162.66"
77.84
137.19
164.56
197.58
153.85'
87.16
146.14
169.38
204.81
164.32"
79.69
143.26
175.30
211.81
169.05'
84.21
146.82
180.76
216.75
173.47'
87.95
154.08
185.15
221.74
179.32
90.40
157.78
192.93
231.32
197.53
92.90
164.86
193.02
230.86
202.02
93.44
165.51
236.39
287.00
265.88
285.41
294.01
292.71
302.25
313.93
323.73
331.92
346.61
347.33
7 American Stock Exchange
(Aug. 31, 1973 = 50?
264.91
316.78
295.08
316.14
323.97
327.47
336.82
349.50
362.73
368.52
379.28
382.75
141,020
11,846
188,922
13,832
161,386
9,955
168,204
10,797
169,223
11,780
159,024
11,395
161,863
11,529
171,495
11,699
180,680
13,519
162,501
11,702
171,683
14,538
151,752
12,631
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
Customer financing (end-of-period balances, in millions of dollars)
10 Margin credit at broker-dealers
3
Free credit balances at brokers4
11 Margin-account
12 Cash-account
36,840
31,990
32,740
32,530
31,480
32,130
32,610
33,140
34,730
34,360
33,940
35,020
4,880
19,000
4,750
15,640
5,660
16,595
5,790
15,705
5,605
16,195
5,345
16,045
5,450
16,125
5,250
15,965
6,900
19,080
5,420
16,345
5,580
16,015
5,680
15,310
Margin requirements (percent of market value and effective date) 6
13 Margin stocks
14 Convertible bonds
15 Short sales
Mar. 11, 1968
June 8 , 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Beginning July 5, 1983, the American Stock Exchange rebased its index
effectively cutting previous readings in half.
3. Beginning July 1983, under the revised Regulation T, margin credit at
broker-dealers includes credit extended against stocks, convertible bonds, stocks
acquired through exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds,
and subscription issues was discontinued in April 1984.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
5. New series beginning June 1984.
6. These regulations, adopted by the Board of Governors pursuant to the
Securities Exchange Act of 1934, limit the amount of credit to purchase and
carry"margin securities" (as defined in the regulations) when such credit is
collateralized by securities. Margin requirements on securities other than options
are the difference between the market value (100 percent) and the maximum loan
value of collateral as prescribed by the Board. Regulation T was adopted effective
Oct. 15, 1934; Regulation U, effective May 1, 1936; Regulation G, effective Mar.
11, 1968; and Regulation X, effective Nov. 1, 1971.
On Jan. 1, 1977, the Board of Governors for the first time established in
Regulation T the initial margin required for writing options on securities, setting
it at 30 percent of the current market-value of the stock underlying the option. On
Sept. 30, 1985, the Board changed the required initial margin, allowing it to be the
same as the option maintenance margin required by the appropriate exchange or
self-regulatory organization; such maintenance margin rules must be approved by
the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC
approved new maintenance margin rules, permitting margins to be the price of the
option plus 15 percent of the market value of the stock underlying the option.
A26
DomesticNonfinancialStatistics • December 1989
1.37 SELECTED FINANCIAL INSTITUTIONS
Selected Assets and Liabilities
Millions of dollars, end of period
1988
Account
1986
1989
1987
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
1,332,212
SAIF-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 loans .
8 Cash and investment
securities
9 Other 3
1,163,851
1,250,855
1,332,878
1,332,905
1,350,500
1,337,382
1,339,115
1,340,500
1,345,458
1,346,639
1,338,895
697,451
721,593
760,790
763,001
764,513
767,260
767,603
769,403
773,424
774,407
773,031
771,956
158,193
201,828
211,833
212,512
214,587
211,308
213,090
215,203
216,176
216,301
211,210
204,181
41,799
23,683
51,622
42,344
23,163
57,902
38,297
25,413
61,053
37,739
25,513
61,504
37,950
33,889
61,922
37,157
32,974
61,998
37,013
32,955
61,981
37,848
32,866
61,402
37,781
32,808
61,739
37,498
33,004
61,879
37,581
33,092
60,735
37,219
33,181
61,081
3,041
3,467
2,932
2,959
3,056
2,840
2,933
3,074
2,895
2,912
3,147
3,169
164,844
112,898
169,717
122,462
184,637
130,388
179,830
131,243
186,986
129,610
178,813
125,026
177,178
126,243
177,094
125,454
175,913
126,074
174,295
127,163
175,262
126,293
175,304
126,897
10 Liabilities and net worth . 1,163,851
1,250,855
1,332,878
1,332,905
1,350,500
1,337,382
1,339,115
1,340,500
1,345,458
1,346,639
1,338,895
1,332,212
932,616
249,917
116,363
133,554
21,941
46,382
976,163
278,301
124,368
153,933
27,558
50,855
971,497
281,088
127,548
153,540
29,178
51,143
971,700
299,400
134,168
165,232
24,216
55,185
963,820
299,415
135,712
163,703
29,751
58,882
957,358
305,675
140,089
165,586
31,749
58,962
956,663
312,988
146,007
166,981
29,592
57,159
954,495
318,662
147,993
170,669
31,662
56,160
955,566
318,362
146,513
171,849
33,618
54,623
960,070
312,070
144,211
167,859
29,992
52,981
963,138
301,541
141,869
159,672
32,003
51,084
11
12
13
14
15
16
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
890,664
196,929
100,025
96,904
23,975
52,282
SAIF-insured federal savings banks
17 Assets
210,562
284,270
369,682
374,930
425,983
423,846
432,675
443,185
455,152
469,950
495,806
507,026
18 Mortgages
19 Mortgage-backed
securities
20 Contra-assets to
mortgage assets' .
21 Commercial loans
22 Consumer loans
23 Contra-assets to nonmortgage loans .
24 Finance leases plus
interest
25 Cash and investment . . .
26 Other
113,638
161,926
207,207
210,732
227,869
234,591
238,415
244,092
249,936
257,184
276,666
285,261
29,766
45,826
56,630
57,815
64,957
62,773
65,896
68,047
69,967
73,967
73,946
74,343
n.a.
n.a.
13,180
9,100
6,504
17,696
10,894
8,880
22,421
10,901
9,041
22,679
13,140
16,731
24,222
12,258
16,172
25,033
12,685
16,320
25,977
12,936
16,317
26,097
13,053
16,498
26,767
13,231
16,935
27,956
13,654
18,014
28,128
13,932
18,264
28,968
678
789
803
889
814
857
972
863
1,072
975'
980
n.a.
n.a.
19,034
591
35,347
24,069
804
48,818
29,178
831
48,028
29,942
880
61,029
35,428
907
57,434
33,954
946
57,986
34,664
1,011
60,319
35,006
1,047
61,279
37,367
1,072
62,002
38,034
1,083
65,681
39,808
1,088
65,949
40,281
27 Liabilities and net worth .
210,562
284,270
369,682
374,930
425,983
423,846
432,675
443,185
455,152
469,950
495,806
507,026
28
29
30
31
32
33
157,872
37,329
19,897
17,432
4,263
11,098
203,1%
60,716
29,617
31,099
5,324
15,034
262,922
80,779
37,510
43,269
7,667
18,194
263,984
83,628
39,630
43,998
8,319
18,882
298,197
99,286
46,265
53,021
8,075
20,235
298,515
98,304
46,470
51,834
8,270
21,625
301,770
102,902
48,951
53,951
8,884
22,700
307,581
107,180
51,532
55,648
8,651
23,103
315,726
109,998
53,513
56,485
9,310
23,411
324,369
114,848
55,457
59,391
10,179
23,924
342,146
121,890
58,500
63,390
9,836
25,726
352,530
121,151
59,737
61,414
10,687
26,306
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
n.a.
Financial Markets A23
1.37—Continued
1988
Account
1986
1989
1987
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Credit unions 5
34 Total assets/liabilities
and capital
35
36
Federal
State
37 Loans outstanding
38
Federal
39
State
40 Savings
41
Federal
42
State
147,726
174,722
174,406
174,593
175,027
176,270
178,175
177,417
178,812
180,664
179,029
95,483
52,243
113,474
61,248
113,717
61,135
114,566
60,027
114,909
60,118
115,543
60,727
117,555
60,620
115,416
62,001
116,705
62,107
117,632
63,032
117,475
61,554
111,624
72,551
39,073
160,174
104,184
55,990
112,452
73,100
39,352
159,021
103,223
55,798
113,191
73,766
39,425
159,010
104,431
54,579
114,012
74,083
39,927
159,106
104,629
54,477
113,880
73,917
39,963
161,073
105,262
55,811
114,572
74,395
40,177
164,322
107,368
56,954
115,249
75,003
40,246
161,388
105,208
56,180
116,947
76,052
40,895
162,134
105,787
56,347
119,101
77,729
41,372
164,415
106,984
57,431
119,720
78,472
41,248
162,405
106,266
56,139
n.a.
n.a.
n.a.
86,137
55,304
30,833
134,327
87,954
46,373
n a.
Life insurance companies
43 Assets
44
45
46
47
48
49
50
51
52
53
54
Securities
Government
United States 6
State and local
Foreign
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
937,551
1,044,459
1,139,490
1,144,854
1,157,140
1,167,184
1,173,325
1,184,963
1,193,032
84,640
59,033
11,659
13,948
492,807
401,943
90,864
193,842
31,615
54,055
80,592
84,426
57,078
10,681
16,667
569,199
472,684
96,515
203,545
34,172
53,626
89,586
88,883
60,621
11,069
17,193
633,390
527,419
105,971
227,342
36,892
53,157
99,826
89,510
61,108
11,189
17,213
638,350
532,197
106,153
229,234
36,673
53,148
94,116
88,167
60,685
11,126
16,356
644,894
538,053
106,841
232,639
37,972
53,020
95,518
88,747
61,042
11,036
16,669
655,149
545,970
109,179
233,334
38,112
53,210
98,632
88,168
60,800
10,736
16,632
659,826
550,630
109,196
233,827
38,690
53,265
99,550
88,941
61,175
10,848
16,918
665,843
556,396
109,447
234,910
38,942
53,364
102,963
87,938
60,220
11,068
16,650
673,826
563,453
110,373
236,439
39,071
53,536
102,222
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. FSLlC-insured institutions: Estimates by the FHLBB for all institutions
insured by the FSLIC and based on the FHLBB thrift Financial Report.
FSLlC-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 federally insured state-chartered credit unions serving
natural persons.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for
differences between market and book values are not made on each item separately
but are included, in total, in "other assets."
As of June 1989 Savings bank data are no longer available.
A28
DomesticNonfinancialStatistics • December 1989
1.38 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
U.S. budget1
1 Receipts, total
2 On-budget
3 Off-budget
4 Outlays, total
5 On-budget
6 Off-budget
7 Surplus, or deficit (—), total
8 On-budget
9 Off-budget
10
11
12
Source of financing (total)
Borrowing from the public
Operating cash (decrease, or increase
(-)),
Other'
Fiscal
year
1987
Fiscal
year
1988
Fiscal
year
1989
1989
Apr.
May
128,952
99,679
29,273
88,381
71,798
16,582
40,572
27,881
12,691
71,115
49,493
21,622
96,581
77,851
18,730
-25,466
-28,358
2,891
July
Aug.
Sept.
108,317
84,110
24,206
100,528
83,994
16,534
7,789
116
7,673
66,255
45,737
20,518
84,494
66,688
17,806
-18,239
-20,951
2,712
76,257
57,253
19,004
98,407
79,314
19,092
-22,150
-22,062
-88
99,233
75,711
23,522
105,390
86,640
18,750
-6,158
-10,929
4,771
June
854,143
640,741
213,402
1,003,830
809,998
193,832
-149,687
-169,257
19,570
908,953
667,462
241,491
1,064,044
861,352
202,691
-155,090
-193,890
38,800
990,789
727,123
263,666
1,142,869
931,648
211,221
-152,080
-204,525
52,445
150,070
162,062
140,369
-1,291
10,214
1,098
-3,962
35,854
6,672
-5,052
4,669
-7,963
991
3,425
8,285
-38,788
-493
21,396
-6,144
-11,649
2,762
21,564
636
-3,235
-10,469
-15,589
15,074
36,436
9,120
27,316
44,398
13,024
31,375
40,973
13,452
27,521
53,461
22,952
30,508
32,065
5,289
26,776
43,713
12,154
31,560
22,149
5,312
16,837
25,384
6,652
18,732
40,973
13,452
27,521
MEMO
13 Treasury operating balance (level, end of
period)
Federal Reserve Banks
Tax and loan accounts
14
15
1. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985, all former off-budget entries are now presented on-budget. The Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the FFB to finance their programs. The act has also moved two
social security trust funds (Federal old-age survivors insurance and Federal
disability insurance trust funds) off-budget.
2. Includes SDRs; reserve position on the U.S. quota in the IMF; loans to
international monetary fund; other cash and monetary assets; accrued interest
payable to the public; allocations of special drawing rights; deposit funds;
miscellaneous liability (including checks outstanding) and asset accounts;
seigniorage; increment on gold; net gain/loss for U.S. currency valuation adjustment; net gain/loss for IMF valuation adjustment; and profit on the sale of gold.
SOURCE. Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government and the Budget of the U.S. Government.
Federal Finance
A29
1.39 U. S. B UDGET RECEIPTS AND O UTLAYS 1
Millions of dollars
Calendar year
Source or type
Fiscal
year
1987
Fiscal
year
1988
1988
1987
H2
HI
1989
1989
H2
HI
July
Aug.
Sept.
RECEIPTS
1 All sources
1?
13
Individual income taxes, net
Withheld
Presidential Election Campaign Fund
Nonwithheld
Refunds
Corporation income taxes
Gross receipts
Refunds
Social insurance taxes and contributions,
net
Employment taxes and
contributions
Self-employment taxes and
contributions
Unemployment insurance
Other net receipts4
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts5
7
3
4
6
7
8
9
10
11
854,143
908,166
421,525
475,724
449,394
527,574
66,191
76,161
99,233
392,557
322,463
33
142,957
72,896
401,181
341,435
33
132,199
72,487
192,575
170,203
4
31,223
8,853
207,659
169,300
28
101,614
63,283
200,299
179,600
4
29,880
9,186
233,568
174,230
28
121,563
62,255
29,377
28,343
1
2,424
1,392
36,932
34,200
1
4,076
1,345
45,026
28,120
1
18,943
2,038
102,859
18,933
109,683
15,487
52,821
7,119
58,002
8,706
56,409
7,250
61,585
7,260
2,921
880
2,872
909
20,085
655
303,318
334,335
143,755
181,058
157,603
200,127
27,941
28,470
29,259
273,028
305,093
130,388
164,412
144,983
184,569
25,979
24,127
29,632
13,987
25,575
4,715
17,691
24,584
4,659
1,889
10,977
2,390
14,839
14,363
2,284
3,032
10,359
2,262
16,371
13,279
2,277
0
1,614
348
-733
3,983
360
2,540
-796
424
32,457
15,085
7,493
19,307
35,540
15,411
7,594
19,909
17,680
7,806
3,610
10,399
16,440
7,522
3,863
9,950
19,299
8,107
4,054
10,873
16,818
7,918
4,583
10,235
2,779
1,431
689
1,933
2,965
1,677
753
3,399
2,428
1,352
631
1,107
1,003,830
1,063,318
532,652
512,856
552,801
565,524
84,430
98,310
105,390
143,080
7,150
5,361
555
6,776
7,872
150,496
2,636
5,852
1,966
8,330
7,725
148,098
6,605
6,238
2,221
7,022
9,619
21,220
347
1,000
106
1,164
499
26,018
848
1,202
287
1,264
-274
28,641
868
1,190
-182
1,423
-61
5,951
12,700
2,765
20,274
14,922
2,690
4,129
13,035
1,833
1,494
2,294
535
2,070
2,623
649
10,095
2,348
964
OUTLAYS
18 All types
19 National defense
70 International affairs
21 General science, space, and technology
77 Energy
73 Natural resources and environment
24 Agriculture
281,999
11,649
9,216
4,115
13,363
26,606
290,361
10,471
10,841
2,297
14,625
17,210
146,995
4,487
5,469
1,468
7,590
14,640
Commerce and housing credit
26 Transportation
27 Community and regional development
28 Education, training, employment, and
social services
6,182
26,222
5,051
18,828
27,272
5,294
3,852
14,096
2,075
75
79 Health
30 Social security and medicare
31 Income security
37 Veterans benefits and services
33 Administration of justice
34 General government
35 General-purpose fiscal assistance
36 Net interest6
1
37 Undistributed offsetting receipts
29,724
31,938
15,592
15,451
16,152
18,083
2,637
3,493
2,937
39,968
282,472
123,250
44,490
298,219
129,332
20,750
158,469
61,201
22,643
135,322
65,555
23,360
149,508
64,978
24,078
162,195
70,937
4,124
26,142
10,264
4,520
27,625
11,176
3,613
26,909
12,126
26,782
7,548
5,948
1,621
138,570
-36,455
29,406
8,436
9,518
1,816
151,748
-36,967
14,956
4,104
3,560
1,175
71,933
-17,684
13,241
4,407
4,337
448
76,098
-17,766
15,797
4,362
5,137
0
78,317
-18,771
14,891
4,801
3,858
0
86,009
-18,131
1,196
783
-53
n.a.
14,003
-3,325
2,246
763
785
n.a.
16,011
-2,998
3,628
836
997
n.a.
13,684
-4,625
1. Functional details do not add to total outlays for calendar year data because
revisions to monthly totals have not been distributed among functions. Fiscal year
total for outlays does not correspond to calendar year data because revisions from
the Budget have not been fully distributed across months.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Federal employee retirement contributions and civil service retirement and
disability fund.
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous
receipts.
6. Net interest function includes interest received by trust funds.
7. Consists of rents and royalties on the outer continental shelf and U.S.
government contributions for employee retirement.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government, and the U.S. Office of Management and Budget, Budget of the U.S. Government, Fiscal Year 1990.
A30
DomesticNonfinancialStatistics • December 1989
1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
B i l l i o n s o f dollars
1987
1988
1989
Item
June 30
Sept. 30
1 Federal debt outstanding
2,313.1
2 Public debt securities
3
Held by public
4
Held by agencies
2,309.3
1,871.1
438.1
Dec. 31
Mar. 31
June 30
Sept. 30
2,354.3
2,435.2
2,493.2
2,555.1
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
3.8
2.8
1.0
4.0
3.0
1.0
3.5
2.7
.8
5.6
5.1
.6
2,295.0
2,336.0
2,417.4
9 Public debt securities
10 Other debt 1
2,293.7
1.3
2,334.7
1.3
11 MEMO: Statutory debt limit
2,320.0
2,800.0
5 Agency securities
6
Held by public
7
Held by agencies
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
Dec. 31
Mar. 31
June 30
2,614.6
2,707.3
2,763.6
2,824.0 R
2,602.2
2,051.7
550.4
2,684.4
2,095.2
589.2
2,740.9
2,133.4
607.5
2,799.9
2,142.1
657.8 r
7.4
7.0
.5
12.4
12.2
.2
22.9
22.6
.3
22.7
22.3
.4
2,472.6
2,532.2
2,586.9
2,669.1
2,725.6
2,784.6
2,416.3
1.1
2,472.1
.5
2,532.1
.1
2,586.7
.1
2,668.9
.2
2,725.5
.2
2,784.3
.2
2,800.0
2,800.0
2,800.0
2,800.0
2,800.0
2,800.0
2,800.0
SOURCES. Treasury Bulletin and Monthly Statement
United States.
24. (f
23.6' r
,5
of the Public Debt of the
Types and Ownership
B i l l i o n s o f dollars, e n d o f p e r i o d
1988
Type and holder
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 Treasury s
Individuals
Savings bonds
Other securities
Foreign and international
Other miscellaneous investors
1985
1988
Q3
Q4
Q1
Q2
1,945.9
2,214.8
2,431.7
2,684.4
2,602.2
2,684.4
2,740.9
2,799.9
1,943.4
1,437.7
399.9
812.5
505.7
87.5
7.5
7.5
2,212.0
1,619.0
426.7
927.5
249.8
593.1
110.5
4.7
4.7
78.1
332.2
90.6
386.9
2,599.9
1,802.9
398.5
1,089.6
299.9
797.0
147.6
6.3
6.3
.0
106.2
536.5
2,663.1
1,821.3
414.0
1,083.6
308.9
841.8
151.5
6.6
6.6
.0
2,663.1
1,821.3
414.0
1,083.6
308.9
841.8
151.5
6.6
6.6
.0
107.6
575.6
107.6
575.6
2.738.3
1,871.7
417.0
1.121.4
318.4
866.6
154.4
6.7
6.7
.0
110.4
594.7
2,797.4
1,877.3
397.1
1,137.2
328.0
920.1
156.0
.0
2,428.9
1,724.7
389.5
1,037.9
282.5
704.2
139.3
4.0
4.0
.0
99.2
461.3
2.5
2.8
2.8
21.3
2.3
21.3
2.6
2.5
348.9
181.3
1,417.2
198.2
25.1
78.5
59.0
226.7
403.1
211.3
1,602.0
203.5
28.0
105.6
68.8
262.8
86.5'
313.6
607.5
228.6
1,900.2
203.3
13.0
112.5
n.a.
326.3
657.8
231.8
1,905.4
n.a.
11.6
n.a.
n.a.
n.a.
79.8
75.0
212.5
462.4
92.3
70.5
251.6
518.9
109.6
77.8
349.5
600.6
112.2
n.a.
363.1
n.a.
114.0
n.a.
355.8
n.a.
211.1
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.
1987
477.6
222.6
1,745.2
201.5 r
14.6'
104.9r
84.6
284.6 r
589.2
238.4
,852.8
192.2r
86.5 r
313.6
550.4
229.2
1,819.0
191.5 r
11. V
109.6 r
86.0
305.7'
101.1
109.6
77.8
349.5
600.6
107.8
76.7
333.3
591.3 r
72.3
287.3
594. y
18.8
111.2
.0
589.2
238.4
1,852.8
192.2'"
18.8
111.2
6.2
6.2
.0
112.3
645.2
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
1.42 U.S. GOVERNMENT SECURITIES DEALERS
A31
Transactions'
Par value; averages of daily figures, in millions of dollars
1989
1986
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Immediate delivery
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 . . .
1987
Julyr
Aug/
Sept.
Aug. 23'
Aug. 30
Sept. 6
Sept. 13
Sept. 20
Sept. 27
95,444
110,050
101,623
114,128
119,802
100,270
107,554
75,226'
83,573
93,071
112,499
104,516
34,247
2,115
24,667
20,455
13,961
37,924
3,271
27,918
24,014
16,923
29,387
3,426
27,777
24,939
16,093
29,041
2,699
31,582
33,580
17,227
30,893
2,659
36,330
31,471
18,450
27,667
2,620
31,526
24,719
13,737
27,505
2,289
37,647
24,892
15,220
21,320'
2,484''
23,293
19.29C
8,839
23,966
2,208
24,682
25,295
2,175
27,362
25,360
12,879
34,218
2,528
31,558
28,831
15,364
26,911
3,164
36,966
23,080
14,395
21,016
11,701
3,669
2,936
2,761
3,088
3,824
2,794
3,295
1,934
1,930
2,849
2,641
2,6%
49,558
42,217
16,747
4,355
3,272
16,660
61,539
45,575
18,084
4,112
2,965
17,135
59,844
39,019
15,903
3,369
2,316
22,927
66,766
44,273
20,849
3,018
2,592
33,548
71,862
44,116
19,048
2,463
1,910
31,006
60,193
37,283
19,193
2,677
2,086
29,145
64,354
39,904
14,418
2,511
1,576
33,687
45,950
27,343''
17,171''
2,242
1,870
28,075
49,945
31,699
13,420
2,070
30,140
56,828
33,394
19,987
2,691
1,925
26,424
67,680
42,178
23,126
2,529
1,933
28,147
61,873
39,946
18,141
3,137
2,140
32,529
3,311
7,175
3,233
8,963
5
2,627
9,695
1,602
9,026
1,6%
10,537
2,645
8,7%
38
1,519
11,542
523
6,754''
16
0
1,279
6,887
75
2,779
7,639
23
3,000
10,365
43
2,326
9,328
31
1,876
7,830
2,029
9,290
2,095
1,629
10,265
2,926
12,067
2,116
6,013
10,760
1,930
7,869r
1,128
6,899
1,885
11,098
2,473
10,117
2,854
7,294
1
21
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
1989
1988
8,614
0
2,210
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 1989
1.43 U.S. GOVERNMENT SECURITIES DEALERS
Positions and Financing1
Averages of daily figures, in millions of dollars
1989
Item
1986
1987
1989
1988
July
Aug/
Sept.
Aug. 30
Sept. 6
Sept. 13
Sept. 20
Sept. 27
Positions
1
Net immediate2
U.S. Treasury securities
12,912
-6,216
-22,765
-166'
3,770
12,199
14,486'
13,397
17,202
11,146
8,833
2
3
4
5
6
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
12,761
3,705
9,146
-9,505
-3,197
4,317
1,557
649
-6,564
-6,174
2,238
-2,236
-3,020
-9,663
-10,084
1,339'
-849
11,639'
-7,693
-4,600
10,317
-834
8,027
-8,765
-4,976
20,423
197
5,303
-8,630
-5,093
19,339'
-903'
7,344'
-6,460'
-4,834
20,123
-374
5,062
-6,859
-4,554
22,879
322
4,731
-6,507
-4,222
19,920
543
5,426
-9,186
-5,556
20,227
357
4,593
-10,439
-5,904
7
8
9
10
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures positions
Treasury bills
Treasury coupons
Federal agency securities
Forward positions
U.S. Treasury securities
Federal agency securities
32,984
10,485
5,526
8,089
31,911
8,188
3,660
7,496
28,230
7,300
2,486
6,152
31,289
7,029
2,122
9,893'
35,268
6,729
1,875
7,490
36,091
7,065
2,154
8,258
33,460'
7,353
1,941
6,793
32,403
7,016
1,978
7,143
37,215
7,386
2,420
7,960
40,232
7,098
2,200
10,119
34,416
6,777
2,105
7,821
-18,059
3,473
-153
-3,373
5,988
-95
-2,210
6,224
0
-5,792
-3,261'
51
-5,376
-2,664
7
-6,106
-4,797
-26
-4,724
-2,245'
0
-4,912
-3,935
-19
-5,179
-4,801
8
-6,523
-5,455
-15
-6,872
-4,500
-29
-2,144
-11,840
-1,211
-18,817
346
-16,348
-1,353'
-19,556
-1,463
-20,640
-603
-17,478
-1,312'
-19,170'
-716
-18,004
-1,583
-18,957
-761
-18,679
202
-15,446
11
12
13
14
15
Financing3
Reverse repurchase agreements'
Overnight and continuing
Term
Repurchase agreements
18 Overnight and continuing
19 Term
16
17
126,709
148,288
136,327
177,477
164,417
231,321
222,799
141,797
191,830
154,204
217,133
160,314
205,450
158,749
211,967
160,325
215,486
148,221
213,871
141,823
102,397
170,763
121,270
172,695
137,056
227,095
195,700
226,043
189,187
206,834
155,612
218,650
175,285
227,668
164,866
233,053
170,114
238,234
172,995
215,280
178,567
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
162,006
98,913
108,607
reverses to maturity, which are securities that were sold after having been
obtained under reverse repurchase agreements that mature on the same day as the
securities. Data for immediate positions do not include forward positions.
3. Figures cover financing involving U.S. Treasury and federal agency securities, negotiable CDs, bankers acceptances, and commercial paper.
4. Includes all reverse repurchase agreements, including those that have been
arranged to make delivery on short sales and those for which the securities
obtained have been used as collateral on borrowings, that is, matched agreements.
5. Includes both repurchase agreements undertaken to finance positions and
"matched book" repurchase agreements.
NOTE. Data on positions for the period May 1 to Sept. 30, 1986, are partially
estimated.
Federal Finance
1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
A33
Debt Outstanding
Millions of dollars, end of period
1989
Agency
1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department'2 3
4
Export-Import Bank
5
Federal Housing Administration
6 Government National
Mortgage Association participation
certificates5
7 Postal Service6
8 Tennessee Valley Authority
9
United States Railway Association
10 Federally sponsored agencies7
11 Federal Home Loan Banks
12 Federal Home Loan Mortgage Corporation
13 Federal National Mortgage Association
14 Farm Credit Banks8
15 Student Loan Marketing Association
16 Financing Corporation 1 "
17 Farm Credit Financial Assistance Corporation"
19
20
21
22
23
Lending to federal and federally sponsored agencies
Export-Import Bank
Postal Service6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association6
Other Lending13
24 Farmers Home Administration
25 Rural Electrification Administration
26 Other
1987
Apr.
May
June
July
Aug.
293,905
307,361
341,386
402,765r
407,324"
406,837'
411,874
411,979
35,145
142
15,882
133
36,390
71
15,678
115
36,958
33
14,211
138
37,981
13
11,978
183
36,402
7
11,007
182
36,275
7
11,007
196
36,404
7
11,014
218
36,453
7
11,014
245
36,453
7
11,014
255
2,165
1,337
15,435
51
2,165
1,940
16,347
74
2,165
3,104
17,222
85
1,615
6,103
18,089
0
0
6,742
18,464
0
0
6,445
18,620
0
0
6,445
18,720
0
0
6,445
18,742
0
0
6,445
18,732
0
237,012
65,085
10,270
83,720
72,192
5,745
0
0
257,515
74,447
11,926
93,896
68,851
8,395
0
0
270,553
88,752
13,589
93,563
62,478
12,171
0
0
303,405
115,725
17,645
97,057
55,275
16,503
1,200
0
366,363 R
154,146
22,676
104,675"
51,678
25,361
6,980
847"
371,049'
156,354
21,620
105,404
53,375
26,469
6,980
847"
370,433'
153,892
25,243
106,308
52,387
24,256
7,500
847'
375,421
151,487
25,690
109,926
53,158
26,813
7,500
847
375,526
149,269
27,165
110,155
53,511
27,079
7,500
847
145,217
153,373
157,510
152,417
141,162
140,220
139,568
138,814
137,690
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
11,001
6,492
4,910
17,084
0
11,001
6,195
4,910
17,240
0
11,008
6.195
4,910
17,340
0
11,008
6,195
4,910
17,362
0
11,008
6,195
4,910
17,352
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
57,086
19,230
25,359
56,311
19,236
25,327
55,586
19,236
25,293
54,911
19,257
25,171
54,611
19,270
24,344
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.
1986
271,564
MEMO
18 Federal Financing Bank debt"
1985
1984
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 1989
1.45 NEW SECURITY ISSUES
Tax-Exempt State and Local Governments
Millions of dollars
1989
Type of issue or issuer,
or use
1986
1
1987
1988
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept.
1 All issues, new and refunding
147,011
102,407
114,522
8,054
8,626
7,464
7,435
13,775
8,735
9,824
10,624
Type of issue
2 General obligation
3 Revenue
46,346
100,664
30,589
71,818
30,312
84,210
3,955
4,099
2,185
6,441
2,301
5,163
2,342
5,093
4,960
8,815
3,789
4,946
2,199
7,625
3,508
7,116
Type of issuer
,
4 State
5 Special district and statutory authority
6 Municipalities, counties, and townships
14,474
89,997
42,541
10,102
65,460
26,845
8,830
74,409
31,193
1,896
3,832
2,326
256
5,962
2,408
1,407
4,238
1,819
392
4,979
2,064
1,989
8,033
3,753
970
4,868
2,897
694
7,027
2,103
764
7,305
2,555
7 Issues for new capital, total
83,492
56,789
79,665
5,222
6,486
6,061
5,938
10,078
6,816
6,612
7,694
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
12,307
7,246
14,594
11,353
6,190
31,802
9,524
3,677
7,912
11,106
7,474
18,020
15,021
6,825
8,496
19,027
5,624
24,672
826
382
847
743
250
2,174
1,055
445
901
1,329
253
2,503
1,225
743
759
1,048
374
1,912
1,024
748
467
1,376
361
1,962
2,678
576
1,058
1,509
329
3,928
998
500
551
1,632
440
2,695
1,302
556
813
1,553
447
1,941
1,606
977
680
1,337
457
2,637
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
SOURCES. Securities Data/Bond Buyer Municipal Data Base beginning 1986.
Public Securities Association for earlier data.
U.S. Corporations
Millions of dollars
Type of issue or issuer,
or use
1989
1986
1987
1988
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
1 All issues
424,737
392,156
408,843'
is,sir
14,843
26,188
14,384
21,240'
23,905
15,630'
14,735
2 Bonds2
356,304
325,648
351,042r
14,267r
12,308'
25,577
13,396
19,639'
21,085
12,275'
12,700
Type of offering
3 Public, domestic
4 Private placement, domestic 3 .
5. Sold abroad
232,742
80,760
42,801
209,279
92,070
24,299
200,164r
127,700
23,178
11,407''
n.a.
2,860
10,114'
n.a.
2,194
22,995
n.a.
2,582
11,471
n.a.
1,925
17,733'
n.a.
1,906
18,177
n.a.
2,908'
10,855'
n.a.
1,420'
11,700
n.a.
1,000
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
90,788
41,909
10,423
30,973
16,441
165,770
61,666
49,327
11,974
23,004
7,340
172,343
69,573r
61,986r
9,976'
19,318
5,902r
184,287'
1,660
2,047
0
665
0
9,896'
1,319
1,118
102
670
230
8,869'
7,456
882
0
153
63
17,023
1,457
843
100
1,695
453
8,848
7,716
2,162
150
385
122
9,105'
3,273
1,628
480
2,936
4
12,764
2,774'
1,204
0
1,173
300
6,824'
3,000
578
0
1,451
0
7,672
12 Stocks2
68,433
66,508
57,802
1,251
2,535
611
988
1,601
2,820
3,355
2,035
Type
13 Preferred
14 Common
15 Private placement
11,514
50,316
6,603
10,123
43,225
13,157
6,544
35,911
15,346
275
976
n.a.
975
1,561
n.a.
0
611
n.a.
495
493
n.a.
325
1,276
n.a.
335
2,485
n.a.
920
2,435
n.a.
1,013
1,023
n.a.
15,027
10,617
2,427
4,020
1,825
34,517
13,880
12,888
2,439
4,322
1,458
31,521
7,608
8,449
1,535
1,898
515
37,798
33
32
220
50
5
911
833
270
0
11
19
1,402
127
26
53
108
0
297
135
280
169
0
93
310
330
115
39
192
224
702
626
508
0
125
25
1,536
594
438
0
25
29
2,269
393
343
0
137
20
1,020
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
1. Figures which represent gross proceeds of issues maturing in more than one
year, are principal amount or number of units multiplied by offering price.
Excludes secondary offerings, employee stock plans, investment companies other
than closed-end, intracorporate transactions, equities sold abroad, and Yankee
bonds. Stock data include ownership securities issued by limited partnerships.
2. Monthly data include only public offerings.
r
3. Data are not available on a monthly basis. Before 1987, annual totals include
underwritten issues only.
SOURCES. IDD Information Services, Inc., the Board of Governors of the
Federal Reserve System, and before 1989, the U.S. Securities and Exchange
Commission.
Securities Market and Corporate Finance
1.47 OPEN-END INVESTMENT COMPANIES
A35
Net Sales and Asset Position
Millions of dollars
1989
Item
1987
1988
Jan.
Feb.
Mar.
Apr.
May
June
July r
Aug.
INVESTMENT COMPANIES1
1 Sales of own shares2
381,260
271,237
29,014
22,741
23,149
25,4%
24,661
25,817
25,330
26,809
2 Redemptions of own shares 3
3 Net sales
314,252
67,008
267,451
3,786
24,494
4,520
22,252
489
24,135
-986
26,183
-687
22,483
2,178
22,562
3,255
20,053
5,277
22,262
4,547
4 Assets4
453,842
472,297
487,204
482,697
483,067
497,329
509,781
515,814
535,910
539,553
5 Cash position5
6 Other
38,006
415,836
45,090
427,207
49,661
437,543
47,908
434,789
46,262
436,805
48,788
448,541
49,177
460,604
48,428
467,386
47,888
488,022
47,209
492,344
1. Data on sales and redemptions exclude money market mutual funds but
include limited maturity municipal bond funds. Data on asset positions exclude
both money market mutual funds and limited maturity municipal bond funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment of capital gains distributions and share issue of conversions from one fund
to another in the same group.
3. Excludes share redemption resulting from conversions from one fund to
another in the same group.
4. Market value at end of period, less current liabilities.
5. Also includes all U.S. government securities and other short-term debt
securities.
NOTE. Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the
Securities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.
SOURCE. Survey of Current Business (Department of Commerce).
1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1987
Account
1986
1 Corporate profits with inventory valuation and
capital consumption adjustment
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
2
3
4
5
6
7 Inventory valuation
8 Capital consumption adjustment
1987
1988
1989
1988
Q3
Q4
Q1
Q2
Q3
Q4
Ql
Q2'
282.1
221.6
106.3
115.3
91.3
24.0
298.7
266.7
124.7
142.0
98.7
43.3
328.6
306.8
137.9
168.9
110.4
58.5
313.0
281.0
132.7
148.3
100.0
48.3
308.2
276.2
127.3
148.9
102.8
46.1
318.1
288.8
129.0
159.9
105.7
54.2
325.3
305.3
138.4
166.9
108.6
58.3
330.9
314.4
141.2
173.2
112.2
61.1
340.2
318.8
143.2
175.6
115.2
60.4
316.3
318.0
144.4
173.6
118.5
55.1
307.8
296.0
134.9
161.1
120.9
40.2
6.7
53.8
-18.9
50.9
-25.0
46.8
-19.4
51.5
-20.4
52.4
-20.7
49.9
-28.8
48.9
-30.4
46.9
-20.1
41.5
-38.3
36.6
-21.0
32.3
ATrade and services are no longer being reported separately. They are included
in Commercial and other, line 10.
1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment •
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1988
Industry
1 Total nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5 Railroad
6 Air
7 Other
Public utilities
8 Electric
9 Gas and other
10 Commercial and other
1987
1988
QL
Q2
Q3
Q4
QL
Q2
Q31
Q41
389.67
430.76
473.65
413.34
427.54
435.61
442.11
459.47
470.86
481.24
483.04
71.01
74.88
78.30
88.01
82.23
99.67
75.28
82.69
77.38
85.24
79.15
89.62
80.56
92.76
81.26
93.%
82.97
98.57
82.51
102.90
82.17
103.27
11.39
12.66
12.22
12.61
13.15
12.53
12.38
12.15
12.70
12.34
11.70
5.92
6.53
6.40
7.06
7.28
7.00
7.85
9.53
7.37
6.96
6.33
7.06
6.99
6.91
7.05
6.84
8.09
7.08
7.45
7.69
6.89
8.02
7.04
8.07
7.37
9.49
7.40
7.24
11.30
7.22
8.75
10.31
6.79
31.63
13.25
168.65
32.03
14.64
183.76
34.65
16.11
204.02
30.80
14.25
177.37
31.31
14.49
185.21
32.07
14.61
185.61
33.69
15.04
185.65
33.69
17.12
198.15
35.34
16.67
200.36
34.96
15.58
207.18
34.61
15.08
210.36
1. Anticipated by business.
2. "Other" consists of construction; wholesale and retail trade; finance and
1989
19891
insurance; personal and business services; and communication.
SOURCE. Survey of Current Business (Department of Commerce).
A36
DomesticNonfinancialStatistics • December 1989
Assets and Liabilities1
1.51 DOMESTIC FINANCE COMPANIES
B i l l i o n s o f dollars, e n d o f p e r i o d
1986
Account
1984
1983
1987
1985
Q2
Q3
Q4
Q1
Q2
Q3
Q4
ASSETS
Accounts receivable, gross
Consumer
Business
Real estate
Total
83.3
113.4
20.5
217.3
89.9
137.8
23.8
251.5
111.9
157.5
28.0
297.4
123.4
166.8
29.8
320.0
135.3
159.7
31.0
326.0
134.7
173.4
32.6
340.6
131.1
181.4
34.7
347.2
134.7
188.1
36.5
359.3
141.6
188.3
38.0
367.9
141.1
2C7.6
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
15 Capital, surplus, and undivided profits
16 Total liabilities and capital
1. NOTE. Components may not add to totals because of rounding.
1.52 DOMESTIC FINANCE COMPANIES
Data after 1987:4 are currently unavailable. It is anticipated that these data will
be available later this year.
Business Credit Outstanding and Net Change1
M i l l i o n s o f dollars, s e a s o n a l l y adjusted
1989
Type
1 Total
2
3
4
5
6
7
8
9
10
11
12
13
Retail financing of installment sales
Automotive
Equipment
Pools of securitized assets
Wholesale
Automotive
Equipment
All other
Pools of securitized assets 2
Leasing
Automotive
Equipment
Pools of securitized assets 2
Loans on commercial accounts receivable and factored
commercial accounts receivable
All other business credit
1986
1987
1988
Mar.
Apr.
May
June
July
Aug.
172,060
205,810
234,529
240,186
244,882
245,861
249,322
251,126
253,822
26,015
23,112
n.a.
35,782
25,170
n.a.
36,548
28,298
n.a.
37,696
28,207
855
38,415
28,790
817
38,816
27,638
846
39,042
27,773
807
39,183
28,128
769
39,355
29,039
793
23,010
5,348
7,033
n.a.
30,507
5,600
8,342
n.a.
33,300
5,983
9,341
n.a.
33,528
6,088
9,682
0
34,383
6,153
9,852
0
34,534
6,096
9,929
0
34,021
6,165
9,862
0
33,233
6,244
10,001
0
33,566
6,497
9,990
0
19,827
38,179
n.a.
21,952
43,335
n.a.
24,673
57,455
n.a.
25,584
59,484
756
25,544
60,246
733
26,011
61,022
824
26,515
63,370
796
26,701
64,086
887
26,739
64,186
990
15,978
13,557
18,078
17,043
17,796
21,134
17,794
20,512
18,677
21,272
18,772
21,371
19,302
21,669
19,989
21,904
20,098
22,571
Net change (during period)
14
15
16
17
18
19
20
21
22
23
24
25
26
Retail financing of installment sales
Automotive
Equipment
Pools of securitized assets 2
Wholesale
Automotive
Equipment
All other
Pools of securitized assets 2
Leasing
Automotive
Equipment
Pools of securitized assets 2
Loans on commercial accounts receivable and factored
commercial accounts receivable
All other business credit
15,763
33,750
22,662
2,808
4,696
978
3,462
1,803
2,697
5,355
629
n.a.
9,767
2,058
n.a.
766
1,384
n.a.
395
-178
173
720
583
-38
401
-1,152
29
226
135
-39
141
354
-38
172
911
24
-978
780
224
n.a.
7,497
252
1,309
n.a.
2,793
226
999
n.a.
-858
-105
113
0
856
65
170
0
151
-56
78
0
-513
69
-68
0
-788
79
139
0
332
253
-11
0
3,552
3,411
n.a.
2,125
5,156
n.a.
2,721
9,962
n.a.
737
1,439
57
-40
762
-23
467
776
91
504
2,348
-28
187
716
91
38
99
103
213
2,576
2,100
3,486
-282
4,091
390
645
883
760
95
100
530
298
687
235
109
667
1. These data also appear in the Board's G.20 (422) release. For address, see
inside front cover.
2. Data on pools of securitized assets are not seasonally adjusted,
Real Estate
A37
1.53 MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1989
1986
1987
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
Terms
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan/price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)
Contract rate (percent per year)
Yield (percent per year)
7 FHLBB series5
8 HUD series4
118.1
86.2
75.2
26.6
2.48
9.82
137.0
100.5
75.2
27.8
2.26
8.94
150.0
110.5
75.5
28.0
2.19
8.81
159.7
117.7
74.4
27.7
2.11
9.63
169.2
124.5
75.0
28.4
1.70
9.88
151.8
112.3
75.3
28.3
2.12
9.82
150.5
111.0
75.2
27.8
1.91
10.09
174.5
125.3
73.8
28.6
2.42
10.06
160.8r
119.4'
75.6
28.3
2.31'
9.83'
160.6
118.6
75.3
28.5
2.13
9.86
10.26
10.07
9.31
10.17
9.18
10.30
9.99
10.93
10.17
10.84
10.18
10.43
10.42
10.04
10.48
9.70
10.22'
10.05
10.23
10.04
9.91
9.30
10.16
9.43
10.49
9.83
11.16
10.38
10.88
10.36
10.55
10.11
10.08
9.75
9.61
9.55
9.95
9.48
9.94
9.47
SECONDARY MARKETS
Yield (percent per year)
9 FHA mortgages (HUD series)5
10 GNMA securities6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12 FHA/VA-insured
13 Conventional
98,048
29,683
68,365
95,030
21,660
73,370
101,329
19,762
81,567
101,991
19,337
82,654
102,191
19,607
82,584
102,564
19,612
82,952
103,309
19,586
83,723
104,421
19,630
84,791
105,8%
19,589
86,307
107,052
19,608
87,444
Mortgage transactions (during period)
14 Purchases
30,826
20,531
23,110
1,469
1,163
1,419
1,862
2,091
2,724
2,223
Mortgage commitments7
15 Contracted (during period)
16 Outstanding (end of period)
32,987
3,386
25,415
4,886
23,435
2,148
1,771
4,807
1,118
4,661
1,626
4,673
2,573
5,236
2,513
5,648
2,842
5,755
2,328
5,865
13,517
746
12,771
12,802
686
12,116
15,105
620
14,485
18,714
593
18,121
18,918
599
18,320
19,443
586
18,857
20,121
585
19,535
20,533
585
19,948
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
103,474
100,236
76,845
75,082
44,077
39,780
6,373
6,037
5,861
5,554
5,141
4,474
7,392
6,551
5,720
5,180
n.a.
6,360
n.a.
n.a.
110,855
71,467
66,026
11,227
4,196
5,186
7,948
6,608
5,705
n.a.
FEDERAL HOME LOAN MORTGAGE CORPORATION
Mortgage holdings (end of period f
17 Total
18 FHA/VA
19 Conventional
Mortgage transactions (during period)
20 Purchases
21 Sales
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.
A38
DomesticNonfinancialStatistics • December 1989
1.54 MORTGAGE DEBT OUTSTANDING1
M i l l i o n s o f dollars, e n d o f p e r i o d
Type of holder, and type of property
1986
1987
1988
Q2
Q3
Q4
Q1
Q2"
1 All holders.
2,618,324
2,977,293
3,268,285
3,120,536
3,189,132
3,268,285
3,328,824
3,391,259
2
3
4
5
1,719,673
247,831
555,039
95,781
1,959,607
273,954
654,863
88,869
2,189,475
290,355
701,652
86,803
2,070,829
280,239
681,660
87,808
2,134,225
284,675
683,207
87,025
2,189,475
290,355
701,652
86,803
2,230,006
296,139
716,695
85,984
2,281,317
297,860
725,341
86,741
1,507,944
502,534
235,814
31.173
222.799
12,748
1,704,560
591,369
276,270
33,330
267,340
14.429
1,874,967
669,160
314,283
34,131
305,242
15,504
1,791,714
629,617
296,265
34,225
283,942
15,185
1,833,800
650,799
307,041
33,960
294,398
15,400
1,874,967
669,160
314,283
34,131
305,242
15,504
1,905,052
688,662
324,681
34,172
313,941
15,868
1,932,154
715,049
338,872
34,954
324,878
16,345
777,967
559,067
97,059
121,236
605
193,842
12,827
20,952
149,111
10,952
33,601
860,467
602,408
106,359
150,943
929,647
678,263
111,302
139,416
898,742
638,638
107,482
151,870
914,280
665,294
109,287
139,029
929,647
678,263
111,302
139,416
936,091
682,658
112,507
140,255
933,694
684,828
110,009
138,201
' 212,375
13,226
22,524
166,722
9,903
40,349
232,639
15,284
23,562
184,124
9,669
43,521
' '220,870
14,172
23,021
174,086
9,591
42,485
' '225,627
14,917
23,139
178,166
9,405
43,094
' '232,639
15,284
23,562
184,124
9,669
43,521
234,910
12,690
24,636
188,073
9,511
45,389
'236,160
12,745
25,103
188,756
9,556
47,251
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
200,570
26
26
199,474
42
24
18
42,767
18,248
8,213
6,288
200,570
26
26
199,847
26
26
201,909
24
24
10,018
198,027
64
51
13
41,836
18,268
8,349
5,300
9,919
42,018
18,347
8,513
5,343
9,815
41,780
18,347
8,615
5,101
9,717
'40,711
18,391
8,778
3,885
9,657
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
5,973
2,672
3,301
103,013
95,833
7,180
32,115
1,890
30,225
17,425
15,077
2,348
5,673
2,564
3,109
102,368
95,404
6,964
33,048
1,945
31,103
15,576
13,631
1,945
5,666
2,432
3,234
102,453
95,417
7,036
32,566
1,917
30,649
15,442
13,322
2,120
5,973
2,672
3,301
103,013
95,833
7,180
32,115
1,890
30,225
17,425
15,077
2,348
6,075
2,550
3,525
101,991
94,727
7,264
31,261
1,839
29,422
18,714
16,192
2,522
6,424
2,827
3,597
103,309
95,714
7,595
31,467
1,851
29,616
19,974
17,305
2,669
44 Mortgage pools or trusts
45
Government National Mortgage Association.
1- to 4-family
Multifamily
Federal Home Loan Mortgage Corporation .
1- to 4-family
Multifamily
Federal National Mortgage Association
1- to 4-family
Multifamily
Farmers Home Administration 5
1- to 4-family
Multifamily
Commercial
Farm
565,428
262,697
256,920
5,777
171,372
166,667
4,705
97.174
95,791
1,383
348
142
718,297
317,555
309,806
7,749
212,634
205,977
6,657
139,960
137,988
1,972
245
754,045
322,616
314,728
7,888
216,155
209,702
6,453
157,438
153,253
4,185
106
23
782,802
333,177
324,573
8,604
220,684
214,195
6,489
167,170
121
810,887
340,527
331,257
9,270
226,406
219,988
6,418
178,250
172,331
5,919
104
26
4,942
106
27
810,887
340,527
331,257
9,270
226,406
219,988
6,418
178,250
172,331
5,919
104
26
839,684
348,622
337,563
11,059
234,695
228,389
6,306
188,071
181,352
6,719
96
24
861,827
353,154
341,951
11,203
242,789
236,404
6,385
196,501
188,774
7,727
85
23
132
74
63
61
38
40
41
42
38
41
38
40
34
38
26
36
59 Individuals and others
60
1- to 4-family
61
Multifamily
62
Commercial
63
Farm
341,152
197,868r
66,940
53,315
23,029
374,503
209,784'
77,502'
66,276'
20,941'
381,861
215,077'
78,411'
67,489'
20,884'
384,241
215,379
78,814
69,29)
20,757
395,369
225,059
79,840
69,595
20,875
1- to 4-family
Multifamily..
Commercial .
Farm
6 Selected financial institutions .
Commercial banks
1- to 4-family
Multifamily..
Commercial ..
Farm
Savings institutions
1- to 4-family
Multifamily
Commercial
Farm
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
Finance companies 4
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
Federal Housing and Veterans Administration.
1- to 4-family
Multifamily
Federal National Mortgage Association
1- to 4-family
Multifamily
Federal Land Banks
1- to 4-family
Farm
Federal Home Loan Mortgage Corporation . . .
1- to 4-family
Multifamily
1. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve. Multifamily debt refers
to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not bank trust
departments.
3. Includes savings banks and savings and loan associations. Beginning 1987:1,
data reported by FSLIC-insured institutions include loans in process and other
contra assets (credit balance accounts that must be subtracted from the corresponding gross asset categories to yield net asset levels).
4. Assumed to be entirely I- to 4-family loans.
361,715
201,704'
75,458'
63,192'
21,361'
42,018
18,347
8,513
5,343
9,815
381,861
215,077'
78,411'
67,489'
20,884'
375,303
212,017'
76,736'
65,433'
21,117'
162,228
5. FmHA-guaranteed securities sold to the Federal Financing Bank were
reallocated from F m H A mortgage pools to F m H A mortgage holdings in 1986:4,
because of accounting changes by the Farmers Home Administration.
6. Outstanding principal balances of mortgage pools backing securities insured
or guaranteed by the agency indicated. Includes private pools which are not
shown as a separate line item.
7. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured
pension funds, credit unions, and other U.S. agencies.
Consumer Installment Credit
A39
1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change, seasonally adjusted
Millions of dollars
1989
1988
Holder, and type of credit
1987
1988
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Amounts outstanding (end of period)
607,721
659,507
659,507
682,020
687,397
691,162
693,911
698,132
700,849
700,344'
703,820
By major holder
Commercial banks
Finance companies
Credit unions
Retailers'
Savings institutions
Gasoline companies
Pools of securitized assets 4
282,910
140,281
80,087
40,975
59,851
3,618
n.a.
318,925
145,180
86,118
43,498
62,099
3,687
n.a.
318,925
145,180
86,118
43,498
62,099
3,687
n.a.
316,797
141,795
87,093
40,986
62,867
3,655
28,827
318,423
143,419
87,813
41,052
63,109
3,677
29,903
318,242
143,070
88,514
41,300
62,735
3,682
33,619^
320,458
144,378
89,330
41,301
61,919
3,787
32,737
323,363
145,523
89,890
41,323
61,311
3,897
32,826
324,438
146,055
90,073
41,649
59,920
4,017
34,696
323,621'
145,488
89,852'
41,798
60,092
3,936
35,557'
326,811
144,386
90,061
41,989
59,731
3,976
36,867
By major type of credit
9 Automobile
10 Commercial banks
11 Credit unions
12 Finance companies
13 Savings institutions
14 Pools of securitized assets4
265,976
109,201
40,351
98,195
18,228
n.a.
281,174
123,259
41,326
97,204
19,385
n.a.
281,174
123,259
41,326
97,204
19,385
n.a.
286,382
122,160
41,707
87,968
19,506
15,042
288,767
122,983
41,964
88,789
19,464
15,568
288,850
123,062
42,211
89,567
19,231
14,779
289,654
123,878
42,510
90,268
18,866
14,132
290,741
125,118
42,687
90,976
18,566
13,395
290,192
125,592
42,684
91,184
18,032
12,700
288,526'
124,881'
42,624'
90,213
17,972
12,835
288,925
126,819
42,768
89,439
17,752
12,147
15 Revolving
16 Commercial banks
17 Retailers
18 Gasoline companies
19 Savings institutions
20 Credit unions
21 Pools of securitized assets4
153,884
99,119
36,389
3,618
10,367
4,391
n.a.
174,792
117,572
38,692
3,687
10,151
4,691
n.a.
174,792
117,572
38,692
3,687
10,151
4,691
n.a.
176,716
111,133
36,176
3,655
10,479
4,785
10,489
178,570
111,706
36,257
3,677
10,722
4,866
11,342
182,831
112,553
36,489
3,682
10,860
4,947
14,299^
184,500
114,130
36,497
3,787
10,918
5,035
14,134
186,502
115,407
36,504
3,897
11,008
5,109
14,578
189,622
115,561
36,814
4,017
10,951
5,187
17,117
191,028'
115,967'
36,963
3,936
11,176
n.a.
17,795'
194,602
117,522
37,134
3,976
11,301
n.a.
19,424
26,387
9,220
7.762
9,406
25,744
8,974
7,186
9,583
25,744
8,974
7,186
9,583
26,036
8,974
7,376
9,687
25,992
8,974
7,308
9,710
24,168
8,844
5,687
9,637
23,993
8,836
5,659
9,498
23,952
8,878
5,684
9,390
23,685
8,847
5,674
9,163
23,630'
8,830'
5,624
9,176
22,974
8,767
5,100
9,107
161,475
65,370
34,324
35,344
4,586
21,850
n.a.
177,798
69,120
40,790
40,102
4,807
22,981
n.a.
177,798
69,120
40,790
40,102
4,807
22,981
n.a.
192,886
74,532
46,451
40,601
4,809
23,196
3,296
194,068
74,760
47,322
40,983
4,795
23,214
2,993
195,314
73,783
47,816
41,357
4,811
23,006
4,541'
195,763
73,614
48,451
41,785
4,804
22,638
4,471
196,936
73,960
48,863
42,094
4,819
22,347
4,853
197,349
74,438
49,197
42,228
4,834
21,773
4,879
197,161'
73,944'
49,650
42,036'
4,835
21,769
4,927
197,319
73,703
49,847
42,046
4,855
21,571
5,296
1 Total
2
3
4
5
6
7
8
22 Mobile home
23 Commercial banks
24 Finance companies
25 Savings institutions
26 Other
27 Commercial banks
28 Finance companies
29 Credit unions
30 Retailers
31 Savings institutions
32 Pools of securitized assets4
Net change (during period)
35,674
51,786
5,094
22,513
5,376r
3,765
2,749
4,221
2,717
-505'
3,476
By major holder
Commercial banks
Finance companies
Credit unions
Retailers
Savings institutions
Gasoline companies
Pools of securitized assets4
19,884
6,349
3,853
1,568
3,689
332
n.a.
36,015
4,899
6,031
2,523
2,248
69
n.a.
2,242
1,692
378
588
177
16
n.a.
-2,128
-3,385
975
-2,512
768
-32
n.a.
1,626
1,624
720
67'
242
22
1,076
-181
-349
701
247'
-375'
6'
3,716'
2,216
1,309'
815'
2'
-815'
104'
-882'
2,904'
1,145
560
21'
-609'
110
89
1,076'
532
184'
326
-1,390'
120
1,870
-817'
-567
-222'
149
172
-81
861'
3,189
-1,102
209
192
-361
39
1,310
By major type of credit
41 Automobile
42 Commercial banks
43 Credit unions
44 Finance companies
45 Savings institutions
46 Pools of securitized assets 4
18,663
7,919
1,916
5,639
3,188
n.a.
15,198
14,058
975
-991
1,157
n.a.
1,248
867
10
547
-176
n.a.
5,208
-1,099
381
-9,236
121
n.a.
2,385
823
257
821
-42
526
82'
79
247
778
-233
-789
804
816
300'
701
-366'
-647
1,087
1,239'
177
708
-300
-737
-549
474
-3
208
-533'
-695
-1,667'
-711'
-60'
-970
-61
135
400
1,938
144
-775
-220
-688
47 Revolving
48 Commercial banks
49 Retailers
50 Gasoline companies
51 Savings institutions
52 Credit unions
53 Pools of securitized assets 4
16,871
12,188
1,866
332
1,771
715
n.a.
20,908
18,453
2,303
69
-216
300
n.a.
1,762
979
522
16
228
18
n.a.
1,924
-6,439
-2,516
-32
328
94
n.a.
1,854
573
81
22
243
81
853
4,261
848'
232
6'
138
81
2,957'
1,670'
1,576'
8
104'
58
88
-165'
2,002
1,277
7
110
90
74
444
3,120
154
310
120
-57
78
2,539
1,406'
405'
149
-81
225
n.a.
678'
3,574
1,555
171
39
125
n.a.
1,629
54 Mobile home
55 Commercial banks
56 Finance companies
57 Savings institutions
-968
192
-1,052
-107
-643
-246
-576
177
-261
-250
-11
-1
292
0
190
104
-44
r
-68
23
-1,824
-131'
-1,621
-72'
-174'
-7'
-28
-140'
-41
42
25
-108
-267
-31
-10
-227
-56'
-18'
-50
12
-656
-63
-524
-69
58 Other
59 Commercial banks
60 Finance companies
61 Credit unions
62 Retailers
63 Savings institutions
64 Pools of securitized assets4
1,108
-415
1,761
1,221
-297
-1,162
n.a.
16,323
3,750
6,466
4,758
221
1,131
n.a.
2,346
646
1,157
350
68
127
n.a.
15,088
5,412
5,661
499
2
215
n.a.
1,182
229r
871
382
-14
18
-303
1,246
-977
494
374
16
-208
1,548'
449
-169
635
428
-7
-368
-70r
1,173
346
412
309
15
-291
382
413
478
334
133'
16'
-574
26
-189'
-494'
453
-191'
0
-5
48
158
-241
197
10
21
-197
369
33 Total
34
35
36
37
38
39
40
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.
4. Outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator.
A40
DomesticNonfinancialStatistics • December 1989
1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1
Percent unless noted otherwise
1989
Item
1986
1987
1988
Feb.
Mar.
Apr.
May
June
July
Aug.
INTEREST RATES
1
2
3
4
5
6
Commercial banks'
48-month new car 3
24-month personal
120-month mobile home
Credit card
Auto finance companies
New car
Used car
11.33
14.82
13.99
18.26
10.45
14.22
13.38
17.92
10.85
14.68
13.54
17.78
11.76
15.22
14.00
17.83
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
12.44
15.65
14.35
18.11
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
12.13
15.45
14.13
18.07
9.44
15.95
10.73
14.60
12.60
15.11
13.07
15.90
13.07
16.12
12.10
16.39
11.80
16.45
11.96
16.45
11.94
16.37
12.22
16.31
50.0
42.6
53.5
45.2
56.2
46.7
55.7
47.4
55.4
47.1
53.4
47.8
52.7
46.6
53.0
46.5
52.9
46.4
52.9
46.2
91
97
93
98
94
98
92
98
92
97
91
97
91
97
91
97
91
97
90
96
10,665
6,555
11,203
7,420
11,663
7,824
11,819
8,022
11,867
7,958
11,886
7,855
11,973
7,908
12,065
7,921
12,108
7,988
11,949
7,874
OTHER TERMS 4
/
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.
Flow of Funds
A41
1.57 FUNDS RAISED IN U.S. CREDIT MARKETS
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1987
Transaction category, sector
1984
1986
1987
1989
1988
1988
Q4
QL
Q2
Q3
Q4
QL
Q2
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors
750.7
846.3
831.1
693.2
765.9
764.9
727.0
826.0
753.3
757.2
788.2
612.9
By sector and instrument
2 U.S. government
3 Treasury securities
4 Agency issues and mortgages
198.8
199.0
-.2
223.6
223.7
-.1
215.0
214.7
.4
144.9
143.4
1.5
157.5
140.0
17.4
175.1
170.2
5.0
211.6
212.0
-0.5
113.7
106.0
7.7
162.5
141.6
20.9
142.1
100.5
41.6
199.9
201.1
-1.2
70.9
65.8
5.1
551.9
320.0
51.0
46.1
222.8
136.7
25.2
62.2
-1.2
622.7
451.4
135.4
73.8
242.2
156.8
29.8
62.2
-6.6
616.1
460.3
22.7
121.3
316.3
218.7
33.5
73.6
-9.5
548.3
458.5
34.1
99.9
324.5
234.9
24.4
71.6
-6.4
608.4
462.6
33.1
120.9
307.7
229.1
18.9
61.7
-2.1
589.8
417.8
25.0
81.6
311.2
225.5
14.9
73.4
-2.6
515.5
386.5
29.1
118.8
238.7
170.7
24.2
48.5
-4.7
712.3
561.0
37.9
143.9
379.2
300.7
14.7
65.4
-1.6
590.8
463.9
34.8
115.9
313.2
231.0
19.5
65.4
-2.6
615.1
438.9
34.3
104.9
299.7
214.0
17.3
67.7
.7
588.3
429.3
30.8
111.6
286.9
205.2
27.2
58.8
-4.4
542.0
414.2
23.1
138.9
252.2
201.8
8.7
39.6
2.1
5 Private domestic nonfinancial sectors
6 Debt capital instruments
Tax-exempt obligations
7
Corporate bonds
8
9
Mortgages
Home mortgages
10
Multifamily residential
11
Commercial
12
Farm
13
14
1
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
231.9
81.6
66.3
21.7
62.2
171.3
82.5
38.6
14.6
35.6
155.8
58.0
66.7
-9.3
40.5
89.7
32.9
10.8
2.3
43.8
145.8
51.1
38.4
11.6
44.8
172.0
54.1
71.9
-10.8
56.7
128.9
43.7
20.8
2.4
62.0
151.3
51.9
58.8
6.8
33.7
126.9
35.5
7.3
17.1
66.9
176.2
73.1
66.6
20.0
16.5
159.0
34.8
22.9
44.1
57.2
127.8
47.7
-13.6
44.9
48.8
19
20
71
2.2
23
24
25
By borrowing sector
State and local governments
Households
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
551.9
28.1
231.5
292.3
-.4
123.2
169.6
622.7
90.9
284.6
247.2
-14.5
129.3
132.4
616.1
36.2
289.2
290.7
-16.3
103.2
203.7
548.3
33.6
271.9
242.8
-10.6
107.9
145.5
608.4
29.8
286.8
291.8
-7.5
91.9
207.5
589.8
24.3
278.0
287.4
.4
115.7
171.4
515.5
23.4
229.0
263.0
-12.7
85.2
190.5
712.3
37.0
345.5
329.7
-3.3
83.6
249.4
590.8
28.1
290.4
272.3
-2.2
100.5
174.0
615.1
30.6
282.1
302.4
-11.8
98.2
216.0
588.3
29.7
261.9
296.6
-6.3
91.1
211.8
542.0
27.7
220.2
294.2
-2.7
76.3
220.5
26 Foreign net borrowing in United States
27 Bonds
28 Bank loans n.e.c
29 Open market paper
30 U.S. government loans
8.4
3.8
-6.6
6.2
5.0
1.2
3.8
-2.8
6.2
-6.0
9.6
3.1
-1.0
11.5
-3.9
4.3
7.4
-3.6
2.1
-1.0
5.9
6.9
-1.8
9.6
-7.9
13.9
21.4
-4.3
-1.6
-1.6
4.8
14.2
1.7
.7
-11.8
5.4
2.6
-3.3
6.5
-.4
4.1
5.9
10.3
-12.1
13.0
5.1
-5.7
21.0
-7.4
-2.4
3.2
4.9
10.2
-20.7
4.2
11.1
-5.0
-6.1
4.2
31 Total domestic plus foreign
759.1
847.5
840.9
698.1
772.7
778.8
731.8
831.4
757.3
770.2
785.8
617.2
*
Financial sectors
32 Total net borrowing by financial sectors
By instrument
33 U.S. government related
34 Sponsored credit agency securities
35 Mortgage pool securities
36 Loans from U.S. government
37
38
39
40
41
42
Private financial sectors
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks
By sector
43
44
45
46
47
48
49
50
51
52
53
Sponsored credit agencies
Mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Savings and loan associations
Mutual savings banks
Finance companies
REITs
SCO Issuers
150.7
201.3
318.9
315.0
264.2
240.1
242.5
263.9
232.1
318.3
395.4
133.0
74.9
30.4
44.4
101.5
20.6
79.9
1.1
187.9
15.2
173.1
-.4
185.8
30.2
156.4
-.8
137.5
44.9
92.6
161.5
62.8
98.8
128.8
59.5
69.3
104.3
11.1
93.1
144.4
46.5
97.8
172.5
62.3
110.1
216.1
84.9
131.2
105.9
12.7
93.3
*
*
*
*
75.9
34.3
.4
1.4
24.0
15.7
99.7
50.9
.1
2.6
32.0
14.2
131.0
82.9
.1
4.0
24.2
19.8
129.2
78.9
.4
-3.3
28.8
24.4
126.7
51.7
.3
1.4
53.6
19.7
78.6
53.4
.8
-11.1
-4.2
39.8
113.7
60.0
-.1
5.9
38.5
9.4
159.6
71.1
.1
5.7
70.5
12.3
87.7
32.5
-.1
-5.6
35.1
25.8
145.8
43.0
1.2
-.3
70.4
31.4
179.4
51.8
.3
3.0
55.2
69.1
27.1
23.9
-.1
3.5
16.7
-16.9
150.7
201.3
318.9
315.0
264.2
240.1
242.5
263.9
232.1
318.3
395.4
133.0
30.4
44.4
75.9
7.3
16.1
17.2
1.2
24.0
.8
9.3
21.7
79.9
99.7
-4.9
16.6
17.3
1.5
57.2
.5
11.5
14.9
173.1
131.0
-3.6
15.2
20.9
4.2
54.5
1.0
39.0
29.5
156.4
129.2
7.1
14.3
19.6
8.1
40.3
.8
39.1
44.9
92.6
117.4
-3.9
5.2
19.9
1.9
67.0
4.1
32.5
62.8
98.8
78.6
11.2
-9.9
28.3
12.6
28.3
2.2
6.0
59.5
69.3
113.7
-16.7
-8.8
10.0
2.3
78.4
5.4
43.0
11.1
93.1
159.6
-1.6
22.4
19.1
1.1
85.4
1.7
31.5
46.5
97.8
87.7
-.9
6.1
24.1
.5
40.7
-5.9
23.1
62.3
110.1
145.8
3.7
.8
26.3
3.8
63.6
15.0
32.5
84.9
131.2
179.4
-13.4
6.4
71.3
-2.8
80.3
-.9
38.4
12.7
93.3
27.1
12.7
2.9
-15.5
-.2
29.0
.4
-2.3
*
*
*
A42
DomesticNonfinancialStatistics • December 1989
1.57—Continued
1987
Transaction category, sector
1984
1985
1986
1987
1989
1988
1988
Q4
Ql
Q2
Q3
Q4
Ql
Q2
All sectors
1,048.8 1,159.8 1,013.2 1,036.9 1,019.0
54 Total net borrowing
909.8
55
56
57
58
59
60
61
62
273.8
51.0
84.3
223.1
81.6
61.1
51.9
82.9
324.2
135.4
128.4
242.2
82.5
38.3
52.8
45.0
6.3
14.4
744.4
192.5
831.9
209.3
U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
63 MEMO: U.S. government, cash balance
Totals net of changes in U.S. government cash balances
64
Net borrowing by domestic nonfinancial
65
Net borrowing by U.S. government
1,088.4 1,181.3
750.2
974.3
1,095.3
989.4
403.4
22.7
207.3
316.4
58.0
69.7
26.4
56.1
331.5
34.1
186.3
324.9
32.9
3.8
33.2
66.5
294.9
33.1
179.5
308.0
51.1
38.0
74.9
56.6
336.7
25.0
156.3
312.0
54.1
56.6
-16.6
94.9
340.4
29.1
193.0
238.6
43.7
28.3
41.6
59.6
218.0
37.9
217.6
379.3
51.9
61.2
83.9
45.6
306.8
34.8
154.3
313.1
35.5
1.7
62.5
80.6
314.6
34.3
153.0
300.8
73.1
60.7
111.5
40.5
416.0
30.8
166.6
287.2
34.8
30.8
109.4
105.6
176.8
23.1
173.9
252.1
47.7
-15.1
55.4
36.1
*
-7.9
10.4
-38.9
47.6
1.2
10.6
-17.9
-22.5
14.5
831.2
215.0
701.1
152.8
755.5
147.1
803.8
214.0
679.4
164.0
824.8
112.5
742.6
151.8
775.1
160.0
810.7
222.4
598.4
56.4
-52.7
External corporate equity funds raised in United States
66 Total net share issues
67
68
69
70
71
Mutual funds
All other
Nonfinancial corporations
Financial corporations
Foreign shares purchased in United States
-36.0
20.1
93.9
13.5
-115.0
-90.4
-101.0 -133.7
-73.5
-163.5 -163.4
29.3
-65.3
-74.5
8.2
.9
84.4
-64.3
-81.5
13.5
3.7
161.8
-68.0
-80.8
11.1
1.2
72.3
-58.8
-76.5
21.4
-2.1
-.4
-114.5
-130.5
12.4
.9
1.8
-92.2
-88.0
10.0
-14.1
-9.5
-6.6
- 9 1 . 5 -127.0
- 9 5 . 0 -140.0
2.4
19.0
1.1
-6.0
1.5
-75.0
-92.0
14.6
2.4
23.9
11.9
3.6
-175.4 -167.0 - 7 6 . 6
-195.0 -180.0 -105.0
13.5
9.5
13.1
3.6
6.1
15.2
Flow of Funds
A43
1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates.
1987
Transaction category, or sector
1984
1985
1987
1986
1989
1988
1988
Q4
Ql
Q2
Q3
Q4
Ql
Q2
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
750.7
846.3
831.1
693.2
765.9
764.9
727.0
826.0
753.3
757.2
788.2
612.9
By public agencies and foreign
2 Total net advances
3 U.S. government securities
4 Residential mortgages
5 FHLB advances to thrifts
6 Other loans and securities
157.6
38.9
56.5
15.7
46.6
202.0
45.9
94.6
14.2
47.3
314.0
69.4
170.1
19.8
54.7
262.8
70.1
153.2
24.4
15.1
237.5
85.0
104.0
19.7
28.7
278.0
123.3
105.9
39.8
9.0
278.6
153.2
88.9
9.4
27.1
185.5
43.3
107.9
12.3
22.1
196.9
24.1
98.1
25.8
49.0
289.0
119.6
121.2
31.4
16.7
345.7
97.6
133.3
69.1
45.7
49.2
-68.4
106.6
-16.9
28.0
17.1
74.3
8.4
57.9
17.8
103.5
18.4
62.3
9.7
187.2
19.4
97.8
-7.9
183.4
24.7
62.7
-5.0
129.6
10.5
102.3
6.4
160.0
22.8
88.8
-7.0
114.3
2.7
168.6
-7.6
105.7
5.0
82.5
4.3
130.1
15.5
47.0
-9.6
168.5
18.9
111.2
-0.2
221.4
5.2
119.3
-4.3
45.6
-3.9
11.8
74.9
8.4
101.5
1.2
187.9
9.7
185.8
4.9
137.5
6.8
161.5
13.9
128.8
4.8
104.3
5.4
144.4
4.1
172.5
13.0
216.1
-2.4
105.9
4.2
Private domestic funds advanced
n Total net advances
14 U.S. government securities
15 State and local obligations
16 Corporate and foreign bonds
17 Residential mortgages
18 Other mortgages and loans
19 LESS: Federal Home Loan Bank advances
676.3
234.9
51.0
35.1
105.3
265.6
15.7
747.0
278.2
135.4
40.8
91.8
214.8
14.2
714.8
333.9
22.7
84.2
82.0
211.8
19.8
621.1
261.4
34.1
87.5
106.1
156.5
24.4
672.6
209.9
34.0
104.4
144.0
200.1
19.7
662.3
213.3
25.0
101.1
134.5
228.2
39.8
582.0
187.2
29.1
126.5
106.0
142.6
9.4
750.1
174.7
37.9
126.2
207.5
216.0
12.3
704.8
282.8
34.8
91.7
152.3
169.0
25.8
653.7
195.0
34.3
73.0
110.1
272.6
31.4
656.2
318.4
30.8
89.4
99.2
187.6
69.1
673.9
245.3
23.1
132.7
103.9
152.0
-16.9
Private financial intermediation
20 Credit market funds advanced by private financial
institutions
21 Commercial banking
22 Savings institutions
23 Insurance and pension funds
24 Other finance
585.8
169.2
154.7
121.8
140.1
579.9
186.0
87.9
154.4
151.6
744.0
197.5
107.6
174.6
264.2
560.8
136.8
136.8
210.9
76.3
575.9
155.3
120.9
212.3
87.4
617.0
278.6
158.2
149.6
30.5
650.6
87.9
96.0
290.6
176.1
568.6
194.5
136.2
196.3
41.6
434.0
118.4
157.1
156.8
1.7
650.4
220.5
94.2
205.5
130.3
634.2
120.3
61.5
294.0
158.4
410.1
170.1
-24.8
142.0
122.7
25 Sources of funds
26 Private domestic deposits and RPs
27 Credit market borrowing
28 Other sources
29
Foreign funds
30
Treasury balances
31
Insurance and pension reserves
32
Other, net
585.8
322.6
75.9
187.3
8.8
4.0
124.0
50.5
579.9
214.3
99.7
265.9
19.7
10.3
131.9
104.1
744.0
262.6
131.0
350.4
12.9
1.7
149.3
186.5
560.8
144.1
129.2
287.5
43.7
-5.8
176.1
73.6
575.9
206.2
126.7
243.0
9.3
7.3
228.4
-2.0
617.0
329.6
78.6
208.8
8.0
-27.8
171.1
57.4
650.6
289.1
113.7
247.8
-60.6
44.2
256.0
8.2
568.6
91.3
159.6
317.6
94.5
-16.3
225.8
13.6
434.0
183.0
87.7
163.3
-42.1
5.6
129.9
69.9
650.4
261.2
145.8
243.4
45.5
-4.1
301.7
-99.6
634.2
137.3
179.4
317.5
-28.4
-21.6
259.1
108.4
410.1
137.9
27.1
245.2
0.1
-2.7
103.4
144.4
Private domestic nonfinancial investors
33 Direct lending in credit markets
34 U.S. government securities
3S State and local obligations
36 Corporate and foreign bonds
37
Open market paper
38 Other
166.4
111.4
27.1
-4.1
7.8
24.2
266.8
157.8
37.7
4.2
47.5
19.6
101.8
60.9
-21.7
39.3
5.4
17.9
189.6
100.0
45.6
24.1
6.6
13.3
223.4
144.2
27.7
17.4
18.4
15.8
124.0
85.4
19.7
50.4
-32.8
1.3
45.1
116.1
15.7
-36.6
-36.7
-13.4
341.1
92.3
31.2
79.5
82.1
56.0
358.5
222.9
50.4
13.8
62.7
8.8
149.0
145.7
13.5
12.7
-34.6
11.7
201.4
198.2
27.0
0.8
6.9
-31.6
290.9
180.4
-17.1
56.5
10.5
60.5
39 Deposits and currency
40 Currency
41 Checkable deposits
42
Small time and savings accounts
43 Money market fund shares
44 Large time deposits
45
Security RPs
46 Deposits in foreign countries
326.1
8.6
30.2
150.7
49.0
82.9
9.8
-5.1
224.6
12.4
41.9
138.5
8.9
7.4
17.7
-2.1
283.0
14.4
95.0
120.6
38.3
-11.4
20.2
5.9
160.2
19.0
-3.0
76.0
27.2
26.7
17.2
-2.8
208.8
14.7
10.4
122.2
22.8
29.6
21.2
-12.1
364.0
31.9
62.3
141.2
53.6
85.4
-13.1
2.5
297.1
10.7
1.4
199.5
57.6
2.8
27.9
-2.7
99.3
13.8
-32.0
130.5
-21.0
-12.6
26.5
-5.9
206.8
29.3
-22.7
72.7
-3.5
129.4
7.0
-5.5
231.9
5.1
95.1
86.0
58.1
-1.2
23.3
-34.4
182.1
153.8
19.3
10.8
-66.1 -100.0
42.2
100.0
51.1
103.8
78.5
30.3
3.7
31.6
25.5
5.1
47 Total of credit market instruments, deposits, and
currency
492.5
491.4
384.8
349.8
432.2
488.0
342.2
440.4
565.2
381.0
383.5
20.7
86.6
66.7
23.8
77.6
82.0
37.3
104.0
110.7
37.6
90.2
106.4
30.7
85.6
111.7
35.7'
93.2'
96.8
38.r
111.8r
108.1
22.3r
75.8'
177.0
26.0r
61.6r
4.9
37.5'
99.5r
156.7
44.0'
96.6'
90.9
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
Agency and foreign borrowing not in line 1
11 Sponsored credit agencies and mortgage pools
12 Foreign
7
8
9
10
48
49
50
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
MEMO: Corporate equities not included above
51 Total net issues
-36.0
20.1
90.5
14.3 -117.9
52 Mutual fund shares
53 Other equities
54 Acquisitions by financial institutions
55 Other net purchases
29.3
-65.3
15.8
-51.8
84.4
-64.3
45.6
-25.5
159.0
-68.5
53.7
36.8
71.6
-.7
-57.3 -117.2
21.4
2.3
- 7 . 1 -120.2
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.
444.7
8.0'
60^
11.9
-90.4 -101.0 -133.7
-73.5 -163.5 -163.4
-52.7
-9.5
-6.6
-91.5 -127.0
-33.8
0.4
-67.2 -134.1
1.5
11.9
3.6
-75.0 -175.4 -167.0
19.1
23.2
-0.7
-92.7 -186.7 -162.7
23.9
-76.6
24.4
-77.1
1.8
-92.2
-19.5
-70.9
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 2Aine 1.
49. Line 20/line 13.
50. Sum of lines 10 and 29.
51. 53. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding may be obtained from Flow of Funds Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.
A44
DomesticNonfinancialStatistics • December 1989
1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING
Billions of dollars; period-end levels.
1987
Transaction category, sector
1983
1984
1985
1988
1989
1986
Q4
Q2
Ql
Q3
Q4
Ql
Q2
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
5,202.6
5,951.8
6,795.1
7,631.2
8,335.0
8,476.7
8,686.4
8,874.5
9,102.0
9,278.5
9,427.7
By sector and instrument
2 U.S. government
3 Treasury securities
4 Agency issues and mortgages
1,177.9
1,174.4
3.6
1,376.8
1,373.4
3.4
1,600.4
1,597.1
3.3
1,815.4
1,811.7
3.6
1,960.3
1,955.2
5.2
2,003.2
1,998.1
5.0
2,022.3
2,015.3
7.0
2,063.9
2,051.7
12.2
2,117.8
2,095.2
22.6
2,155.7
2,133.4
22.3
2,165.7
2,142.1
23.6
5 Private domestic nonfinancial sectors
6
Debt capital instruments
Tax-exempt obligations
7
Corporate bonds
8
9
Mortgages
10
Home mortgages
11
Multifamily residential
12
Commercial
13
Farm
4,024.6
2,715.1
469.0
423.0
1.823.1
1.200.2
158.8
350.4
113.7
4.575.1
3,038.0
520.0
469.2
2,048.8
1.336.2
183.6
416.5
112.4
5,194.7
3,485.5
655.5
542.9
2.287.1
1.490.2
213.0
478.1
105.9
5,815.8
3,957.5
679.1
664.2
2,614.2
1,720.8
246.2
551.4
95.8
6,374.7
4.428.0
713.2
764.1
2,950.7
1.943.1
270.0
648.7
88.9
6,473.5
4.511.0
718.1
793.8
2.999.1
1,978.0
273.0
660.2
88.0
6,664.1
4.652.6
727.2
829.8
3.095.7
2,055.3
276.6
676.0
87.8
6,810.6
4,782.0
746.1
858.8
3,177.2
2,118.0
281.0
691.1
87.0
6,984.3
4.902.1
759.8
885.0
3,257.3
2.174.2
286.8
709.6
86.8
7,122.8
4,996.6
765.1
912.9
3,318.6
2,215.3
292.6
724.7
86.0
7,262.0
5.100.7
770.3
947.6
3.382.8
2,267.7
294.6
733.7
86.7
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
1,309.5
437.7
491.1
36.8
344.0
1,537.1
519.3
553.1
58.5
406.2
1,709.3
601.8
592.7
72.2
442.6
1,858.4
659.8
656.1
62.9
479.6
1,946.7
692.7
664.3
73.8
516.0
1,962.5
688.9
668.3
73.5
531.9
2,011.5
705.8
687.2
77.8
540.6
2,028.5
721.2
687.7
80.3
539.4
2,082.1
743.7
702.6
85.4
550.4
2,126.3
745.0
717.5
96.1
567.6
2,161.3
761.4
709.8
110.1
580.0
19
20
21
22
23
24
25
By borrowing sector
State and local governments....
Households
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
4,024.6
355.0
1,791.6
1,878.0
188.4
645.8
1,043.8
4.575.1
383.0
2.018.2
2,173.9
187.9
769.0
1,216.9
5,194.7
473.9
2.295.5
2,425.4
173.4
898.3
1.353.6
5,815.8
510.1
2,591.8
2,714.0
156.6
1,001.6
1,555.8
6,374.7
543.7
2,864.5
2.966.5
145.5
1,109.4
1.711.6
6,473.5
547.1
2,900.4
3,026.0
141.3
1,131.7
1,753.0
6,664.1
556.0
2.989.6
3,118.5
143.9
1,151.9
1.822.7
6,810.6
565.7
3.067.4
3.177.5
143.6
1.172.6
1,861.3
6,984.3
573.5
3,150.8
3.260.0
137.6
1,205.3
1.917.1
7,122.8
578.5
3,209.6
3,334.8
134.9
1,229.1
1,970.8
7.262.0
584.8
3,267.9
3,409.3
137.7
1,247.5
2.024.1
27
28
29
30
26 Foreign credit market debt held in
United States
Bonds
Bank loans n.e.c
Open market paper
U.S. government loans
. 225.9
64.2
37.4
21.5
102.8
233.6
68.0
30.8
27.7
107.1
234.7
71.8
27.9
33.9
101.1
236.4
74.9
26.9
37.4
97.1
242.9
82.3
23.3
41.2
96.1
244.6
86.1
22.8
42.5
93.1
245.9
86.0
22.4
44.0
93.5
246.1
87.4
22.7
46.3
89.8
249.7
89.2
21.5
50.9
88.2
249.4
90.5
21.6
54.4
82.9
259.6
92.2
30.0
52.7
84.6
31 Total domestic plus foreign
5,428.5
6,185.4
7,029.9
7,867.6
8,578.0
8,721.3
8,932.3
9,120.6
9,351.8
9,527.9
9,687.3
Financial sectors
32 Total credit market debt owed by
financial sectors
859.9
1,010.2
1,213.2
1,563.6
1,885.5
1,926.0
2,000.5
2,058.2
2,149.7
2,259.0
2,301.6
456.7
206.8
244.9
5.0
403.2
118.6
2.1
28.1
195.5
59.0
531.2
237.2
289.0
5.0
479.0
153.0
2.5
29.5
219.5
74.6
632.7
257.8
368.9
6.1
580.5
204.5
2.7
32.1
252.4
88.8
844.2
273.0
565.4
5.7
719.5
287.4
2.7
36.1
284.6
108.6
1,026.5
303.2
718.3
5.0
859.0
366.3
3.1
32.8
323.8
133.1
1,050.6
313.5
732.1
5.0
875.4
380.5
3.1
31.7
330.6
129.5
1,076.9
317.9
754.0
5.0
923.6
397.9
3.1
34.3
353.4
134.8
1,116.3
328.5
782.8
5.0
941.9
406.4
3.1
32.9
358.0
141.6
1,164.0
348.1
810.9
5.0
985.7
418.0
3.4
34.2
377.4
152.8
1,209.0
364.3
839.7
5.0
1,050.0
458.0
3.5
32.2
392.5
163.8
1,235.8
369.0
861.8
5.0
1,065.8
463.7
3.4
34.6
402.2
161.9
43 Total, by sector
859.9
1,010.2
1,213.2
1,563.6
1,885.5
1,926.0
2,000.5
2,058.2
2,149.7
2,259.0
2,301.6
44
45
46
47
48
49
50
51
52
53
211.8
244.9
403.2
76.8
73.5
64.4
1.7
179.0
3.5
4.2
242.2
289.0
479.0
84.1
89.5
81.6
2.9
203.0
4.3
13.5
263.9
368.9
580.5
79.2
106.2
98.9
4.4
261.2
5.6
25.0
278.7
565.4
719.5
75.6
116.8
119.8
8.6
328.1
6.5
64.0
308.2
718.3
859.0
82.7
131.1
139.4
16.7
378.8
7.3
103.1
318.5
732.1
875.4
76.4
131.0
135.3
17.1
393.0
8.7
113.9
322.9
754.0
923.6
77.2
136.3
141.9
17.6
419.8
9.1
121.8
333.5
782.8
941.9
76.6
136.3
148.1
18.1
427.7
7.6
127.5
353.1
810.9
985.7
78.8
136.2
159.3
18.6
445.8
11.4
135.7
369.3
839.7
1,050.0
73.3
140.0
170.1
17.8
464.3
11.1
173.3
374.0
861.8
1,065.8
78.0
140.4
168.1
17.9
477.6
11.2
172.7
33
34
35
36
37
38
39
40
41
42
By instrument
U.S. government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. government
Private financial sectors
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks
Sponsored credit agencies
Mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Savings and loan associations
Mutual savings banks
Finance companies
REITs
SCO issuers
All sectors
54 Total credit market debt
55
56
57
58
59
60
61
62
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
6,288.3
7,195.7
8,243.1
9,431.2
10,463.4
10,647.2
10,932.8
11,178.8
11,501.4
11,786.9
11,988.9
1,629.4
469.0
605.8
1,825.4
437.7
556.6
253.8
510.7
1,902.8
520.0
690.1
2,051.4
519.3
613.4
305.7
592.9
2,227.0
655.5
819.2
2,289.8
601.8
652.7
358.5
638.6
2,653.8
679.1
1,026.4
2,617.0
659.8
719.1
384.9
691.1
2,981.8
713.2
1,212.7
2,953.8
692.7
720.3
438.8
750.2
3,048.8
718.1
1,260.4
3,002.2
688.9
722.7
446.7
759.4
3,094.2
727.2
1,313.7
3,098.8
705.8
744.0
475.3
773.9
3,175.2
746.1
1,352.5
3,180.3
721.2
743.3
484.6
775.7
3,276.7
759.8
1,392.2
3,260.7
743.7
758.3
513.6
796.3
3,359.7
765.1
1,461.4
3,322.1
745.0
771.4
543.1
819.2
3,396.5
770.3
1,503.5
3,386.3
761.4
774.4
565.0
831.4
Flow of Funds
A45
1.60 SUMMARY OF CREDIT MARKET CLAIMS, BY HOLDER
Billions of dollars, except as noted; period-end levels.
1987
Transaction category, or sector
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
1983
1984
1985
1989
1988
1986
Q4
Ql
Q2
Q3
Q4
Ql
Q2
5,202.6
5,951.8
6,795.1
7,631.2
8,335.0
8,476.7
8,686.4
8,874.5
9,102.0
9,278.5
9,427.7
1,100.4
339.0
367.0
59.0
335.4
1,257.7
377.9
423.5
74.6
381.6
1,460.5
423.8
518.2
88.8
429.7
1,794.7
493.2
712.3
108.6
480.5
2,044.9
563.3
862.0
133.1
486.6
2,099.4
595.7
880.6
129.5
493.6
2,151.3
610.1
906.1
134.8
500.3
2,191.8
613.3
934.9
141.6
502.1
2,264.1
648.3
966.0
152.8
496.9
2,336.1
666.2
995.3
163.8
510.9
2,354.8
653.1
1,020.5
161.9
519.3
7 Total held, by type of lender
8 U.S. government
9
Sponsored credit agencies and mortgage pools . . .
10 Monetary authority
11 Foreign
1,100.4
211.4
482.0
159.2
247.7
1,257.7
228.2
556.3
167.6
305.6
1,460.5
246.7
659.8
186.0
367.9
1,794.7
253.3
869.8
205.5
466.1
2,044.9
238.0
1,048.9
230.1
527.9
2,099.4
237.1
1,068.0
224.9
569.5
2,151.3
235.8
1,095.6
229.7
590.2
2,191.8
226.3
1,132.9
230.8
601.9
2,264.1
217.0
1,178.6
240.6
627.8
2,336.1
217.9
1,223.5
235.4
659.3
2,354.8
217.4
1,236.4
238.4
662.6
Agency and foreign debt not in line 1
Sponsored credit agencies and mortgage pools . . .
Foreign
456.7
225.9
531.2
233.6
632.7
234.7
844.2
236.4
1,026.5
242.9
1,050.6
244.6
1,076.9
245.9
1,116.3
246.1
1,164.0
249.7
1,209.0
249.4
1,235.8
259.6
Private domestic holdings
14 Total private holdings
15 U.S. government securities
16 State and local obligations
17 Corporate and foreign bonds
18 Residential mortgages
19 Other mortgages and loans
20 LESS: Federal Home Loan Bank advances
4,784.8
1,290.4
469.0
441.7
992.2
1,650.5
59.0
5,458.9
1,524.9
520.0
476.8
1,096.5
1,915.3
74.6
6,202.1
1,803.2
655.5
517.6
1,185.1
2,129.7
88.8
6,917.1
2,160.6
679.1
601.3
1,254.7
2,330.0
108.6
7,559.5
2,418.5
713.2
689.6
1,351.1
2,520.1
133.1
7,672.4
2,453.1
718.1
722.2
1,370.4
2,538.2
129.5
7,857.8
2,484.1
727.2
752.9
1,425.9
2,602.7
134.8
8,045.1
2,561.9
746.1
775.7
1,464.1
2,638.7
141.6
8,251.7
2,628.4
759.8
794.0
1,494.9
2,727.3
152.8
8,400.8
2,693.5
765.1
817.6
1,512.7
2,775.7
163.8
8,568.3
2,743.5
770.3
849.4
1,541.8
2,825.1
161.9
Private financial intermediation
21 Credit market claims held by private financial
institutions
22 Commercial banking
23
Savings institutions
24 Insurance and pension funds
25 Other finance
4,115.0
1,622.5
947.4
1,093.5
451.6
4,699.6
1,791.9
1,100.7
1,215.3
591.7
5,283.1
1,978.9
1,191.2
1,369.7
743.4
6,025.7
2,176.3
1,297.9
1,544.3
1,007.1
6,604.6
2,313.1
1,445.5
1,755.2
1,090.7
6,740.3
2,327.1
1,453.6
1,818.9
1,140.7
6,903.0
2,382.6
1,496.2
1,870.7
1,153.5
7,017.1
2,421.6
1,539.2
1,912.4
1,144.0
7,185.8
2,468.4
1,571.7
1,967.6
1,178.1
7,337.0
2,490.9
1,571.0
2,030.5
1,244.6
7,462.5
2,541.0
1,573.7
2,069.2
1,278.5
26 Sources of funds
27 Private domestic deposits and RPs
28 Credit market debt
4,115.0
2,393.2
403.2
4,699.6
2,715.6
479.0
5,283.1
2,930.0
580.5
6,025.7
3,188.4
719.5
6,604.6
3,324.8
859.0
6,740.3
3,400.1
875.4
6,903.0
3,425.8
923.6
7,017.1
3,465.1
941.9
7,185.8
3,541.2
985.7
7,337.0
3,567.5
1,050.0
7,462.5
3,605.3
1,065.8
29
30
31
32
33
1,318.6
-23.0
11.5
1,036.1
294.1
1,504.9
-14.1
15.5
1,160.8
342.6
1,772.7
5.6
25.8
1,289.4
451.8
2,117.9
18.6
27.5
1,427.9
643.9
2,420.8
62.2
21.6
1,597.2
739.6
2,464.8
45.9
23.5
1,665.5
729.9
2,553.6
62.3
32.6
1,721.6
737.1
2,610.0
51.9
34.2
1,761.3
762.7
2,658.9
71.6
29.0
1,813.1
745.3
2,719.5
61.9
13.5
1,876.0
768.1
2,791.4
55.0
27.1
1,893.9
815.4
Private domestic nonfinancial investors
34 Credit market claims
35 U.S. government securities
36 Tax-exempt obligations
37 Corporate and foreign bonds
38 Open market paper
39 Other
1,073.0
548.5
167.3
37.2
75.7
244.3
1,238.4
659.5
194.2
33.1
83.5
268.0
1,499.5
814.7
231.9
38.0
131.0
283.8
1,610.8
899.1
211.2
77.8
136.4
286.2
1,813.9
992.0
256.8
102.2
160.7
302.3
1,807.5
1,004.3
256.6
98.4
146.4
301.8
1,878.4
1,018.5
267.6
111.0
170.2
311.1
1,969.9
1,081.7
285.0
117.3
175.4
310.5
2,051.6
1,138.5
297.5
115.5
182.1
317.9
2,113.8
1,166.8
298.9
155.9
179.1
313.2
2,171.6
1,202.4
298.5
162.2
185.6
323.0
40 Deposits and currency
41
Currency
42 Checkable deposits
43 Small time and savings accounts
44 Money market fund shares
45 Large time deposits
46 Security RPs
47 Deposits in foreign countries
2,569.8
150.9
350.5
1,542.9
169.5
249.5
80.8
25.7
2,895.8
159.6
380.6
1,693.4
218.5
332.5
90.6
20.6
3,120.4
171.9
422.5
1,831.9
227.3
339.9
108.3
18.5
3,399.2
186.3
517.4
1,948.3
265.6
328.5
128.5
24.5
3,553.9
205.4
514.0
2,017.1
292.8
355.2
145.7
23.7
3,623.9
204.0
494.8
2,084.9
318.4
350.1
151.9
19.9
3,655.6
209.9
509.4
2,110.9
306.1
343.2
156.2
19.9
3,695.4
213.4
494.8
2,131.1
303.6
377.0
158.6
16.8
3,772.9
220.1
523.6
2,150.4
315.6
384.8
166.9
11.6
3,802.4
220.7
488.1
2,168.7
340.3
396.4
174.1
14.3
3,848.2
225.9
487.5
2,186.3
357.9
401.2
172.5
17.0
48 Total of credit market instruments, deposits, and
currency
3,642.8
4,134.2
4,619.9
5,010.0
5,367.8
5,431.5
5,534.1
5,665.2
5,824.4
5,916.2
6,019.8
20.8'r
85.2
373.5
22.8rr
87.1
484.7
23.8
87.3
590.2
24.0
87.8
615.3
24.0
87.8
652.5
24.0
87.2
653.8
24.2
87.0
699.4
24.5
87.3
721.2
24.3
87.0
717.6
2
3
4
5
6
12
13
49
50
51
By public agencies and foreign
Total held
U.S. government securities
Residential mortgages
FHLB advances to thrifts
Other loans and securities
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
MEMO: Corporate equities not included above
52 Total market value
20.3r
86^
224.7
20.3'
86. V
291.5
2,133.7
2,157.9
2,823.9
3,360.6
3,325.0
3,509.9
3,652.9
3,599.4
3,608.3
3,719.1
4,059.3
53
54
Mutual fund shares
Other equities
112.1
2,021.6
136.7
2,021.2
240.2
2,583.7
413.5
2,947.1
460.1
2,864.9
479.2
3,030.8
486.8
3,166.2
478.1
3,121.3
478.3
3,130.0
486.3
3,232.8
516.6
3,542.8
55
56
Holdings by financial institutions
Other holdings
612.0
1,521.7
615.6
1,542.3
800.0
2,023.9
972.1
2,388.4
1,013.8
2,311.2
1,088.6
2,421.3
1,144.9
2,508.1
1,136.8
2,462.7
1,156.3
2,452.0
1,210.6
2,508.5
1,340.2
2,719.2
NOTES BY LINE NUMBER.
1. Line 1 of table 1.59.
2. Sum of lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
12. Credit market debt of federally sponsored agencies, and net issues of
federally related mortgage pool securities.
14. Line 1 less line 2 plus line 12 and 13. Also line 21 less line 28 plus line 34.
Also sum of lines 29 and 48 less lines 41 and 47.
19. Includes farm and commercial mortgages.
27. Line 40 less lines 41 and 47.
28. Excludes equity issues and investment company shares. Includes line 20.
30. Foreign deposits at commercial banks plus bank borrowings from foreign
affiliates, less claims on foreign affiliates and deposits by banking in foreign banks.
31. Demand deposits and note balances at commercial banks.
32. Excludes net investment of these reserves in corporate equities.
33. Mainly retained earnings and net miscellaneous liabilities.
34. Line 14 less line 21 plus line 28.
35-39. Lines 15-19 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 39 includes mortgages.
41. Mainly an offset to line 10.
48. Lines 34 plus 40, or line 14 less line 29 plus 41 and 47.
49. Line 2/line 1 and 13.
50. Line 21/line 14.
51. Sum of lines 11 and 30.
52-54. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding may be obtained from Flow of Funds Section, Stop 95, Division of
Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
A46
Domestic Nonfinancial Statistics • December 1989
2.10 NONFINANCIAL BUSINESS ACTIVITY
Selected Measures1
1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1989
Measure
1986
1987
1988
Jan.
Feb.
Mar.
Apr.
May
June
July"
Aug."
Sept.
1 Industrial production
125.1
129.8
137.2
140.8
140.5
140.7
141.7
141.6
142.0"
142.0
142.4
142.3
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
133.3
132.5
124.0
143.6
136.2
113.8
138.3
136.8
127.7
148.8
143.3
118.3
145.9
144.3
133.9
158.2
151.5
125.3
150.1
148.2
138.5
161.1
156.6
128.1
150.0
148.6
138.7
161.6
155.1
127.4
150.5
148.9
138.4
162.8
156.1
127.3
151.6
150.2
139.5
164.3
156.5
128.2
151.7
150.4
139.2
165.4
156.3
127.9
152.5"
151.2"
139.9"
166.1"
157.0
127.7
152.0
150.4
138.9
165.7
157.6
128.3
152.6
151.0
139.3
166.5
158.0
128.6
152.6
151.1
139.5
166.5
157.9
128.2
129.1
134.6
142.8
147.2
146.8
147.0
148.0
148.1
148.7"
148.6
149.1
148.7
79.7
78.6
81.1
80.5
83.5
83.7
84.7
84.6
84.3
84.0
84.1
83.7
84.5
84.2
84.3
83.8
84.4"
83.6"
84.1
83.7
84.1
83.8
83.7
83.4
2
i
4
5
6
7
Industry groupings
8 Manufacturing
Capacity utilization (percent)2
9 Manufacturing
10 Industrial materials industries
11 Construction contracts (1982 = 100)3
158.3
163.8
160.8
155.0
148.0
150.0
163.0
159.0
157.0
163.0
160.0
175.0
12
13
14
b
16
17
18
19
20
21
Nonagricultural employment, total 4
Goods-producing, total
Manufacturing, total
Manufacturing, production- worker . . .
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable personal income
Retail sales6
120.7
100.9
96.3
91.1
129.0
219.4
210.8
177.4
218.5
199.3
124.1
101.8
96.8
91.9
133.4
235.0
226.3
183.8
232.4
210.8
128.6
105.0
99.2
94.3
138.5
252.8
244.4
196.5
252.1
225.1
130.3
105.3
99.8
94.9
140.8
265.8
256.1
203.0
264.0
233.2
130.6
105.3
99.8
95.0
141.2
268.7
257.3
204.0
268.1
232.2
130.8
105.4
100.0
95.1
141.5
271.3
259.5
207.5
270.3
232.4
131.1
105.5
99.9
95.0
141.8
272.9
261.7
205.7
269.6
235.5
131.3
105.5
99.9
95.0
142.2
273.5
262.0
205.8
271.7
237.4
131.7
105.4
99.8
94.8
142.7
274.8
263.8
207.0
273.8
237.3
131.9
105.4
99.8
94.8
143.0
276.4
266.1
207.5
275.5
239.1
132.0
105.6
99.8
94.8
143.1
277.2
266.7
208.8
276.2
240.7
132.2
105.1
99.3
94.1
143.6
278.0
268.1
208.5
276.9
241.8
22
23
Prices7
Consumer (1982-84 = 100)
Producer finished goods (1982 = 100) . . .
109.6
103.2
113.6
105.4
118.3
108.0
121.1
121.6
111.7
122.3
112.1
123.1
113.0
123.8
114.2
124.1
114.1
124.4
114.0
124.6
113.3
125.0
113.5
111.1
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 in t h e FEDERAL RESERVE BULLETIN, v o l . 71
(July 1985), pp. 487-501. The revised indexes for January through June 1985 were
shown in the September BULLETIN.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, Department of Commerce, and other sources.
3. Index of dollar value of total construction contracts, including residential,
nonresidential and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
5. Based on data in Survey of Current Business (U.S. Department of Commerce).
6. Based on Bureau of Census data published in Survey of Current Business.
1. Data without seasonal adjustment, as published in Monthly Labor Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5,and 6,
and indexes for series mentioned in notes 3 and 7 may also be found in the Survey
of Current Business.
Figures for industrial production for the last two months are preliminary and
estimated, respectively.
Selected Measures
2.11
A47
LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1989
Category
1986
1987
1988
Feb.
Mar.
Apr.
May
June
July"
Aug/
Sept.
HOUSEHOLD SURVEY DATA
1 Noninstitutional population1
182,822
185,010
186,837
187,979
188,102
188,228
188,377
188,518
188,672
188,808
188,948
2 Labor force (including Armed Forces)1
3 Civilian labor force
Employment
4
Nonagricultural industries
Agriculture
5
Unemployment
6
Number
7
Rate (percent of civilian labor force) . . . .
8 Not in labor force
120,078
117,834
122,122
119,865
123,893
121,669
125,383
123,181
125,469
123,264
125,863
123,659
125,806
123,610
126,291
124,102
126,145
123,956
126,228
124,018
126,262
124,040
106,434
3,163
109,232
3,208
111,800
3,169
113,630
3,223
113,930
3,206
114,009
3,104
114,102
3,112
114,445
3,096
114,240
3,219
114,290
3,307
114,199
3,257
8,237
7.0
62,744
7,425
6.2
62,888
6,701
5.5
62,944
6,328
5.1
62,596
6,128
5.0
62,633
6,546
5.3
62,365
6,395
5.2
62,571
6,561
5.3
62,227
6,497
5.2
62,527
6,421
5.2
62,580
6,584
5.3
62,686
9 Nonagricultural payroll employment3
99,525
102,310
106,039
107,711
107,888
108,101
108,310
108,607
108,767
108,855
109,064
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
18,965
777
4,816
5,255
23,683
6,283
23,053
16,693
19,065
721
4,998
5,385
24,381
6,549
24,196
17,015
19,536
733
5,294
5,584
25,362
6,679
25,464
17,387
19,648
711
5,270
5,667
25,631
6,763
26,434
17,587
19,680
714
5,252
5,666
25,685
6,774
26,520
17,597
19,672
720
5,279
5,682
25,695
6,776
26,651
17,626
19,667
722
5,283
5,700
25,750
6,790
26,711
17,687
19,650
715
5,283
5,716
25,781
6,808
26,931
17,723
19,649
706
5,314
5,736
25,823
6,815
26,973
17,751
19,650
730
5,316
5,625
25,874
6,834
27,046
17,780
19,547
725
5,316
5,717
25,887
6,844
27,153
17,875
ESTABLISHMENT SURVEY DATA
10
11
12
13
14
15
16
17
1. Persons 16 years of age and over. Monthly figures, which are based on
sample data, relate to the calendar week that contains the 12th day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the March 1984
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A48
2.12
Domestic Nonfinancial Statistics • December 1989
OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION 1
Seasonally adjusted
1988
1989
1989
1988
Series
Q4
Ql
Q2'
Q3
Output (1977 = 100)
Q4
Ql
Q2
Q3
Q4
Capacity (percent of 1977 output)
Ql
Q2 r
Q3
Utilization rate (percent)
1 Total industry
139.9
140.7
141.8
166.3
167.5
168.7
169.9
84.1
84.0
84.1
83.7
2 Mining..
3 Utilities.
104.2
114.3
101.8
116.0
102.0
115.7
102.7
114.3
125.7
140.7
125.1
141.0
124.7
141.4
124.3
141.7
82.9
81.3
81.3
82.3
81.8
81.8
82.6
80.6
4 Manufacturing.
145.8
147.0
148.3
148.8
172.8
174.3
175.7
84.4
84.4
84.4
84.0
5 Primary p r o c e s s i n g . . .
6 Advanced processing.
127.7
156.7
127.8
158.6
127.6
160.8
128.8
161.0
145.2
189.5
146.5
191.0
147.8
192.6
149.1
194.2
87.9
82.7
87.3
83.0
86.4
83.5
86.4
82.9
7 Materials.
128.0
127.6
127.9
128.4
150.8
151.7
152.6
153.5
84.9
84.1
83.9
83.6
8 Durable goods
9
Metal materials
10 Nondurable goods
11
Textile, paper, and chemical
12
Paper
13
Chemical
139.2
100.8
135.4
138.1
148.6
144.1
138.6
98.4
136.3
139.2
148.4
145.4
139.0
96.0
137.1
139.8
146.1
145.7
139.7
96.4
138.7
141.7
169.0
114.5
151.2
151.8
152.3
159.3
170.1
115.1
152.7
153.5
154.0
161.4
171.3
115.6
154.2
155.3
155.8
163.7
172.5
155.8
157.0
82.4
88.0
89.5
91.0
97.6
90.5
81.5
85.5
89.3
90.7
96.4
90.1
81.1
83.0
88.9
90.0
93.8
89.0
81.0
83.0
89.0
90.3
14 Energy materials.
102.0
100.7
100.7
99.7
118.7
118.4
118.3
118.1
86.0
85.0
85.1
84.4
May
June'
July r
Aug/
Sept
Previous cycle
Latest cycle
High
High
Low
116.1
1989
Sept.
Jan.
Feb.
Mar.
Apr.
Capacity utilization rate (percent)
15 Total industry
88.6
72.1
86.9
69.5
83.7
84.3
83.9
83.8
84.2
84.0
84.0
83.8
83.8
83.6
17 Utilities
92.8
95.6
87.8
82.9
95.2
88.5
76.9
78.0
82.3
80.4
82.2
80.9
80.6
82.6
81.2
83.3
82.0
82.9
81.8
81.8
81.5
80.8
81.8
80.7
82.6
80.2
83.5
81.1
18 Manufacturing
87.7
69.9
86.5
68.0
84.0
84.7
84.3
84.1
84.5
84.3
84.4
84.1
84.1
83.7
19 Primary processing..
91.9
86.0
68.3
71.1
89.1
85.1
65.0
69.5
87.2
82.4
88.4
83.1
87.0
83.0
86.4
83.0
86.8
83.5
86.2
83.4
86.2
83.5
86.7
82.9
86.7
83.0
85.8
82.8
16 Mining
20 Advanced processing
21 Materials
22 Durable goods
23
Metal materials
24 Nondurable goods . .
25
Textile, paper, and
chemical
26
Paper
27
Chemical
28 Energy materials
92.0
70.5
89.1
68.5
84.1
84.6
84.0
83.7
84.2
83.8
83.6
83.7
83.8
83.4
91.8
99.2
91.1
64.4
67.1
66.7
89.8
93.6
88.1
60.9
45.7
70.7
81.9
88.0
88.2
82.1
87.7
90.1
81.5
85.5
89.0
80.9
83.2
88.8
81.3
84.9
89.2
81.0
81.7
88.7
81.1
82.5
88.7
81.3
84.2
89.2
81.2
84.3
88.9
80.3
80.4
88.8
92.8
98.4
92.5
64.8
70.6
64.4
89.4
97.3
87.9
68.8
79.9
63.5
89.4
97.9
88.0
91.5
98.1
90.7
90.3
95.8
89.8
90.2
95.3
89.7
90.7
94.5
90.1
89.6
93.2
88.4
89.8
93.7
88.5
90.6
95.0
89.5
90.2
95.7
88.6
90.0
94.6
86.9
94.0
82.3
85.3
84.9
84.9
85.4
86.0
85.5
83.8
83.7
84.4
85.0
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
A49
Indexes and Gross Value1
Monthly data are seasonally adjusted
1977
Groups
portion
1989
1988
1988
avg.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June"
July
Aug." Sept/
Index (1977 = 100)
MAJOR MARKET
1 Total index
100.00
137.2
138.6
139.4
139.9
140.4
140.8
140.5
140.7
141.7
141.6
142.0
142.0
142.4
142.3
57.72
44.77
25.52
19.25
12.94
42.28
145.9
144.3
133.9
158.2
151.5
125.3
147.4
145.8
134.8
160.4
152.9
126.5
148.1
146.4
136.4
159.7
154.0
127.5
148.4
146.8
136.8
159.9
154.2
128.3
149.4
147.7
138.2
160.4
155.0
128.3
150.1
148.2
138.5
161.1
156.6
128.1
150.0
148.6
138.7
161.6
155.1
127.4
150.5
148.9
138.4
162.8
156.1
127.3
151.6
150.2
139.5
164.3
156.5
128.2
151.7
150.4
139.2
165.4
156.3
127.9
152.5
151.2
139.9
166.1
157.0
127.7
152.0
150.4
138.9
165.7
157.6
128.3
152.6
151.0
139.3
166.5
158.0
128.6
152.6
151.1
139.5
166.5
157.9
128.2
6.89
2.98
1.79
1.16
.63
1.19
3.91
1.24
1.19
.96
1.71
125.4
125.1
123.0
93.7
177.4
128.3
125.6
144.1
143.5
136.2
106.3
126.3
126.4
124.8
97.7
175.3
128.8
126.2
144.9
143.7
137.1
106.6
129.3
128.9
128.3
101.3
178.4
129.8
129.7
154.4
151.9
138.8
106.7
129.2
129.5
129.5
101.0
182.4
129.5
128.9
150.4
148.9
139.8
107.3
131.9
134.5
138.0
105.1
199.1
129.3
130.0
151.0
150.0
140.5
108.9
131.5
132.5
135.6
99.6
202.3
127.9
130.7
151.0
149.5
141.1
110.1
131.6
131.6
133.1
96.0
201.9
129.4
131.6
153.9
153.0
141.3
110.1
130.1
128.9
128.3
95.0
190.0
129.8
131.1
151.6
152.3
140.7
110.9
132.2
131.7
131.7
98.8
192.8
131.7
132.6
151.7
152.5
142.8
113.0
131.2
128.6
127.4
96.0
185.5
130.4
133.3
151.3
151.4
144.3
114.1
130.8
125.6
123.3
91.4
182.5
129.1
134.8
155.6
155.0
143.1
115.0
127.5
120.6
114.6
81.2
176.7
129.6
132.7
148.3
147.2
142.1
116.2
128.6
122.5
119.4
86.4
180.5
127.2
133.2
150.2
151.7
141.0
116.6
128.2
122.0
117.2
92.7
162.5
129.2
132.9
150.1
19 Nondurable consumer goods
20 Consumer staples
71
Consumer foods and tobacco
22
Nonfood staples
23
Consumer chemical products
24
Consumer paper products
25
Consumer energy
26
Consumer fuel
27
Residential utilities
18.63
15.29
7.80
7.49
2.75
1.88
2.86
1.44
1.42
137.0
144.8
141.0
148.9
179.8
163.3
109.8
95.4
124.5
138.0
145.8
141.1
150.7
185.0
166.3
107.6
92.7
122.8
139.0
147.0
142.4
151.8
186.1
167.1
108.9
95.3
122.7
139.7
147.9
143.7
152.2
185.7
167.8
109.8
94.1
125.8
140.5
148.9
144.5
153.6
186.8
169.0
111.6
96.3
127.1
141.1
149.4
144.8
154.2
187.6
174.2
109.1
96.7
121.7
141.4
149.7
144.3
155.4
187.8
177.0
110.1
95.0
125.4
141.4
149.9
143.3
156.9
188.9
180.4
110.7
95.6
126.1
142.2
150.7
144.7
156.9
187.3
180.9
112.0
97.3
127.0
142.1
150.7
144.7
156.9
189.1
180.9
110.1
93.6
127.0
143.3
151.9
145.7
158.4
191.0
183.6
110.7
95.6
126.1
143.1
151.6
145.2
158.3
191.9
181.8
110.6
97.0
124.4
143.3
151.8
145.5
158.3
192.7
182.5
109.4
96.1
143.7
152.4
Equipment
28 Business and defense equipment
29 Business equipment
30
Construction, mining, and farm
31
Manufacturing
3?
Power
33
Commercial
34
Transit
35 Defense and space equipment
18.01
14.34
2.08
3.27
1.27
5.22
2.49
3.67
163.3
157.6
71.9
131.3
89.4
245.0
115.4
185.9
165.6
160.8
74.3
135.8
92.2
248.7
116.8
184.5
165.1
160.2
74.2
136.2
91.5
245.4
120.3
184.0
165.5
161.2
74.5
136.2
92.1
247.0
122.3
182.2
166.2
162.6
74.6
137.0
91.8
248.9
124.9
180.5
167.1
163.8
74.3
136.3
92.8
252.4
125.7
180.0
167.9
165.0
75.6
137.8
92.7
254.3
125.2
179.3
168.9
166.3
76.9
138.6
93.0
257.6
123.9
178.7
170.3
167.8
77.6
139.7
93.6
260.1
124.8
179.9
171.5
169.1
76.3
140.9
93.3
263.2
125.3
180.7
172.0
169.6
74.8
142.8
92.5
264.5
124.8
181.1
171.5
168.9
73.3
144.4
92.1
264.0
121.2
181.7
172.2
169.9
72.0
144.0
92.1
265.4
125.7
181.0
172.0
169.8
72.4
143.5
92.0
265.5
125.4
180.5
5.95
6.99
5.67
1.31
138.6
162.4
168.5
136.3
138.4
165.2
171.8
136.7
140.0
165.9
172.3
138.2
140.7
165.7
172.9
134.3
141.4
166.7
173.8
135.8
142.3
168.8
175.9
138.2
139.5
168.4
175.4
138.3
139.3
170.4
177.4
140.3
140.2
170.4
177.9
138.0
140.2
170.0
177.3
138.2
141.2
170.4
177.9
138.4
142.0
170.8
177.9
140.1
142.4
171.4
178.5
140.6
141.6
20.50
4.92
5.94
9.64
4.64
135.5
109.0
171.6
126.8
96.1
137.8
174.0
129.2
100.3
138.9
111.4
174.9
130.8
101.1
139.8
113.9
175.0
131.3
101.4
139.0
112.5
174.1
130.9
99.8
139.4
111.7
175.2
131.5
100.8
138.6
112.1
175.2
129.7
98.4
137.9
110.7
175.3
128.8
95.9
139.0
110.8
176.9
130.0
98.0
138.7
111.8
177.1
128.9
94.4
139.4
111.6
177.5
130.0
95.5
140.0
110.3
178.9
131.2
97.7
140.2
111.3
179.3
130.8
97.9
138.9
109.9
179.2
128.8
93.5
2 Products
Final products
4
Consumer goods
5
Equipment
6
Intermediate products
7 Materials
Consumer goods
8 Durable consumer goods
9 Automotive products
10
Autos and trucks
11
Autos, consumer
17
Trucks, consumer
N
Auto parts and allied goods
14 Home goods
15
Appliances, A/C and TV
16
Appliances and TV
17
Carpeting and furniture
18
Miscellaneous home goods
Intermediate products
36 Construction supplies
37 Business supplies
38 General business supplies
39 Commercial energy products
Materials
40 Durable goods materials
41 Durable consumer parts
42 Equipment parts
43 Durable materials n.e.c
44
Basic metal materials
111.0
159.5
110.8
45 Nondurable goods materials
46 Textile, paper, and chemical
materials
47
Textile materials
48
Pulp and paper materials
49
Chemical materials
50 Miscellaneous nondurable materials . . .
10.09
132.0
132.6
134.7
135.1
136.3
137.1
135.9
136.0
137.1
136.8
137.3
138.6
138.6
138.9
7.53
1.52
1.55
4.46
2.57
134.4
110.0
147.3
138.2
125.0
134.9
109.2
148.1
139.0
125.9
137.4
109.5
148.4
143.1
126.6
137.9
110.1
147.2
144.2
127.0
139.1
110.0
150.3
145.1
128.0
139.9
112.1
150.4
145.7
129.1
138.6
110.7
147.5
145.0
128.0
139.0
111.8
147.3
145.4
127.2
140.3
114.6
146.7
146.8
127.8
139.1
116.4
145.2
144.7
129.9
140.0
117.2
146.5
145.5
129.4
141.7
116.0
149.1
147.9
129.3
141.7
116.8
150.8
147.0
141.8
51 Energy materials
52 Primary energy
53 Converted fuel materials
11.69
7.57
4.12
101.5
106.3
92.7
101.5
106.8
91.8
101.3
106.0
92.6
102.3
108.6
90.7
102.6
107.6
93.3
100.5
105.2
92.0
100.5
104.4
93.3
101.0
103.7
96.1
101.7
104.1
97.4
101.1
104.6
94.7
99.1
103.0
92.0
98.9
102.9
91.6
99.7
103.6
92.5
100.4
A50 Domestic Nonfinancial Statistics • December 1989
2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued
Groups
SIC
code
1977
proportion
1988
1989
1988
avg.
Sept.
Oct.
Nov.
Dec
Jan.
Feb.
Mar.
Apr.
May
June'
July'
Aug/
Sept.
Index (1977 = 100)
MAJOR INDUSTRY
1 Mining and utilities .
2
Mining
3
Utilities
4 Manufacturing
5
Nondurable
6
Durable
15.79
9.83
5.96
84.21
35.11
49.10
107.5
103.5
114.0
142.8
143.9
142.0
107.2
103.7
113.0
144.4
145.3
143.8
107.2
103.1
113.9
145.3
146.3
144.6
108.1
104.7
113.7
145.8
146.7
145.2
108.9
104.9
115.4
146.3
147.1
145.7
107.2
103.0
114.0
147.2
148.5
146.2
106.8
100.9
116.5
146.8
148.1
145.9
107.5
101.5
117.5
147.0
148.6
145.8
107.9
102.4
117.1
148.0
149.6
146.9
107.2
102.0
115.6
148.1
149.5
147.1
106.3
101.5
114.3
148.7
150.5
147.4
106.4
101.7
114.2
148.6
150.9
147.0
106.8
102.7
113.6
149.1
151.1
147.6
.50
1.60
7.07
.66
93.6
138.2
93.0
140.0
99.1
142.2
92.0
139.7
101.6
138.5
91.5
142.8
104.6
149.7
90.8
144.0
111.9
155.1
88.9
149.4
106.9
144.7
88.9
150.8
98.6
134.7
89.5
142.5
98.1
137.7
89.6
143.5
96.8
145.5
89.1
144.5
94.0
137.1
90.5
146.6
101.2
129.2
90.6
150.2
108.2
130.2
90.3
150.2
135.4
90.5
149.1
145.7
102.4
117.2
110.1
150.7
145.8
107.0
117.9
146.6
105.0
108.8
110.2
153.8
146.3
104.7
119.4
110.2
151.7
145.4
101.5
119.7
109.9
151.7
146.6
109.2
122.5
111.3
150.7
147.2
105.9
123.6
111.5
150.1
147.9
104.2
123.8
111.9
150.2
147.5
106.0
123.5
111.7
152.4
188.0
158.1
98.0
177.5
60.2
193.0
159.0
98.0
175.9
62.9
194.6
158.5
96.3
175.0
62.9
198.5
159.2
97.0
176.4
200.1
159.3
97.3
178.0
61.4
199.0
158.2
96.9
180.5
60.3
200.5
159.9
97.9
182.3
60.5
199.4
161.9
98.3
182.3
60.8
200.0
162.0
97.3
7
8
9
10
Mining
Metal
Coal
Oil and gas e x t r a c t i o n . . . .
Stone and earth minerals.
11
12
13
14
15
Nondurable
manufactures
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
7.96
.62
2.29
2.79
3.15
142.7
105.4
116.4
109.1
150.2
143.2
105.0
109.9
150.9
144.0
105.4
117.0
109.5
151.8
16
17
18
19
20
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products .
Leather and products
4.54
8.05
2.40
2.80
.53
183.8
152.0
96.0
174.4
59.4
188.0
188.1
155.3
93.7
175.3
59.9
156.7
96.3
176.9
61.0
188.5
157.5
95.0
177.5
61.5
24
25
32
2.30
1.27
2.72
133.5
164.9
122.6
137.5
164.5
123.3
139.4
165.4
124.7
143.0
165.4
125.1
139.9
166.3
126.6
132.8
164.8
125.4
133.4
165.8
125.5
135.1
122.6
124.7
135.5
170.2
123.9
137.2
170.8
123.9
136.9
169.5
123.4
138.4
169.2
124.1
33
331.2
34
35
36
5.33
3.49
6.46
9.54
7.15
89.4
78.2
120.9
170.7
180.1
93.1
81.4
122.5
174.8
94.2
83.1
122.6
181.8
173.8
183.0
92.7
80.8
124.6
175.4
182.2
90.0
77.6
125.1
177.8
180.9
93.2
82.2
124.5
178.7
180.9
91.1
79.1
124.5
180.8
181.7
88.4
75.9
123.8
183.0
181.6
90.1
77.0
123.1
184.7
87.2
73.2
124.8
186.5
181.6
87.3
72.9
125.2
187.5
181.9
89.0
75.4
125.9
187.0
181.1
89.2
75.1
126.1
187.1
182.5
29 Transportation equipment
37
30
Motor vehicles and parts
371
31
Aerospace and miscellaneous
transportation equipment. 372-6.9
32 Instruments
38
33 Miscellaneous manufactures . . . .
39
9.13
5.25
132.2
117.4
132.7
118.5
134.8
121.7
135.2
122.9
136.8
125.5
136.7
124.9
136.4
123.4
134.8
120.4
136.4
122.0
135.5
119.7
134.2
116.4
131.6
110.4
133.2
114.2
3.87
152.4
154.4
107.1
151.9
157.8
108.5
152.7
159.9
107.7
151.9
160.4
109.0
152.2
159.1
110.9
152.7
161.0
154.0
161.3
110.0
154.4
161.8
112.5
155.9
163.0
115.3
157.1
164.3
117.1
158.4
165.7
119.1
160.3
166.1
119.0
159.0
164.9
118.7
Durable manufactures
21 Lumber and products
22 Furniture and fixtures
23 Clay, glass, and stone products
24
25
26
27
28
Primary metals
Iron and steel
Fabricated metal products.
Nonelectrical machinery . .
Electrical machinery
10
11.12
13
14
2.66
1.46
137.6
162.0
116.2
Utilities
34 Electric .
151.7
120.2
112.2
61.2
168.0
182.2
153.5
182.0
60.5
137.0
Gross value (billions of 1982 dollars, annual rates)
MAJOR MARKET
35 Products, total
517.5
36 Final
37
Consumer goods
38
Equipment
39 Intermediate
405.7 1,401.2 1,404.3 1,423.5 1,426.3 1,442.1 1,447.5 1,449.6 1,442.8 1,460.4 1,449.6 1,448.8 1,433.5 1,437.3 1,441.4
272.7
902.4 897.2 915.0 918.4 934.4 935.6 934.3 928.0 939.4 928.5
928.0 917.4 917.9 921.6
133.0
498.8 507.1
508.4 507.9 507.7 511.9 515.2 514.8 521.1
521.1
520.8 516.0 519.4 519.8
111.9
423.3 424.5 430.5 429.3 433.2 437.7 429.6 435.3 433.5 435.9 435.6 437.4 437.1
437.5
1,824.5 1,828.9 1,853.4 1,855.5 1,875.3 1,885.1 1,879.2 1,878.0 1 , 8 9 3 . 9 1,885.5 1,884.4 1 , 8 7 0 . 9 1,874.4 1,878.9
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 = 100) 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 . 71
(July 1985), pp. 487-501. The revised indexes for January through June 1985 were
shown in the September BULLETIN.
Selected Measures
A51
2.14 HOUSING AND CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1988
Item
1986
1987
1989
1988
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July'
Aug.
Private residential real estate activity (thousands of units)
NEW UNITS
1 Permits authorized
2
1-family
3 2-or-more-family
1,750
1,071
679
1,535
1,024
511
1,456
994
462
1,508
1,027
481
1,518
1,058
460
1,486
1,052
434
1,403
989
414
1,230
870
360
1,334
954
380
1,347
905
442
1,308
874
434
1,281
906
375
1,328
927
401
4 Started
5
1-family
6 2-or-more-family
1,805
1,180
626
1,621
1,146
474
1,488
1,081
407
1,567
1,138
429
1,577
1,141
436
1,678
1,199
479
1,465
1,029
436
1,409
981
428
1,343
1,029
314
1,308
977
331
1,406
972
434
1,420
1,026
394
1,332
992
340
7 Under construction, end of period1 .
8
1-family
9 2-or-more-family
1,074
583
490
987
591
397
919
570
350
959
603
356
956
603
353
957
602
355
951
594
357
942
586
356
924
579
345
911
572
339
914
572
342
918
577
341
n.a.
n.a.
n.a.
1,756
1,120
636
1,669
1,123
546
1,530
1,085
445
1,429
1,037
392
1,539
1,108
431
1,537
1,141
396
1,610
1,189
421
1,459
1,050
409
1,552
1,115
437
1,442
1,041
401
1,354
965
389
1,369
956
413
n.a.
n.a.
n.a.
13 Mobile homes shipped
244
233
218
227
225
232
212
207
198
205
202
178
194
Merchant builder activity in
1-family units
14 Number sold
15 Number for sale, end of period
748
357
672
365
675
366
650
364
669
366
700
369
621
375
555
377
607
377
653'
38C
653'
377'
758
369
755
364
10 Completed
11
1-family
12 2-or-more-family
16
17
Price (thousands of dollars)'
Median
Units sold
Units sold
92.2
104.7
113.3
110.4
121.0
113.0
118.0
123.0
116.7
119.0'
123.0'
116.0
122.9
112.2
127.9
139.0
137.3
147.7
138.6
145.3
149.0
144.7
145.1'
153.8'
141.6
162.3
3,566
3,530
3,594
3,710
3,920
3,550
3,480
3,400
3,400
3,210
3,360
3,330
3,480
80.3
98.3
85.6
106.2
89.2
112.5
88.5
112.4
88.7
112.0
89.7
113.0
91.9
117.8
92.0
116.1
92.9
118.0
92.6
118.0
93.4
118.8
96.7
122.1
94.8
120.8
EXISTING UNITS ( l - f a m i l y )
18 Number sold
Price of units sold
(thousands of dollars)
19 Median
20 Average
Value of new construction 3 (millions of dollars)
CONSTRUCTION
21 Total put in place
387,043 397,721
409,663
415,442 425,035
424,791
418,465
419,152 414,834r 420,410' 416,928' 414,539
421,813
22 Private
23 Residential
24 Nonresidential, total
Buildings
25
Industrial
26
Commercial
27
Other
28
Public utilities and other
315,313
187,147
128,166
320,108
194,656
125,452
328,738
198,101
130,637
332,798
202,048
130,750
336,254
202,480
133,774
339,481
204,707
134,774
335,037
202,322
132,715
340,438 335,480' 334,462' 333,440'
204,456 203,678r 200,854' 198,635'
135,982 131,802' 133,608' 134,805'
332,834
199,029
133,805
335,769
198,896
136,873
13,747
56,762
13,216
44,441
13,707
55,448
15,464
40,833
14,931
58,104
17,278
40,324
15,413
56,676
17,328
41,333
15,045
58,659
17,744
42,326
15,890
59,350
17,976
41,558
15,098
58,749
17,484
41,384
15,698
60,653
17,634
41,997
16,245'
55,581'
16,645'
43,331'
15,945'
56,796
17,343'
43,524'
16,302'
57,434'
17,179'
43,890'
16,274
56,612
16,790
44,129
16,643
57,604
18,060
44,566
71,727
3,868
22,971
4,646
40,242
77,612
4,327
25,343
5,162
42,780
80,922
3,579
28,524
4,474
44,345
82,644
3,420
28,992
4,134
46,098
88,781
3,905
33,674
4,412
46,790
85,310
3,440
30,792
4,121
46,957
83,428
3,433
27,936
4,742
47,317
78,714
3,740
26,091
4,210
44,673
80,420
2,054'
27,772
3,068'
47,526'
85,130
3,870'
27,432'
6,053'
47,775'
81,914
4,324'
27,321'
4,699'
45,57C
80,949
3,264
26,147
4,498
47,040
n.a.
3,689
27,460
4,736
n.a.
29 Public
30 Military
31 Highway
32 Conservation and development...
33 Other
1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly
comparable with data in previous periods because of changes by the Bureau of the
Census in its estimating techniques. For a description of these changes see
Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
NOTE. Census Bureau estimates for all series except (1) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing
Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices
of existing units, which are published by the National Association of Realtors. All
back and current figures are available from the originating agency. Permit
authorizations are those reported to the Census Bureau from 16,000 jurisdictions
beginning with 1978.
A52
Domestic Nonfinancial Statistics • December 1989
2.15 CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Item
CONSUMER PRICES
(1982-84=100)
Change from 3 months earlier
(at annual rate)
1988
1988
1989
Sept.
Sept.
Change from 1 month earlier
1989
Index
level
Sept.
1989
1989'
Dec.
Mar.
June
Sept.
May
June
July
Aug.
Sept.
2
1
All items
4.2
4.3
4.1
6.1
5.7
1.6
.6
.2
.2
.0
.2
125.0
2
3
4
Food
Energy items
All items less food and energy
Commodities
Services
5.3
-.4
4.4
3.5
5.0
4.9
4.4
4.3
2.7
5.0
3.0
-.4
4.9
4.2
5.4
8.2
10.2
5.2
4.1
5.9
5.6
24.8
3.8
2.0
4.3
2.9
-13.4
3.1
.7
4.5
.6
1.6
.5
.4
.5
.2
-1.0
.2
-.1
.4
.3
-.7
.4
.1
.6
.2
-2.0
.2
-.3
.3
.2
-.9
.2
.4
.2
126.1
95.9
130.0
120.1
135.8
2.7
4.2
-7.3
4.2
2.8
4.5
3.0
11.7
4.5
3.9
3.0
2.1
1.4
4.4
1.7
10.2
13.1
41.0
5.4
4.6
5.1
-2.0
31.0
5.3
4.1
.4
-.7
-16.3
2.9
5.2
.9
.8'
2.Y
.6
-.1
-.8
-2.8''
.7
.4'
-.4
.1
-3.0
-.3
.0
-.4
.3
-7.3
.5
.3
.9
-.6
6.5
.6
1.0
113.5
118.5
65.7
124.2
118.8
5.4
7.4
3.7
2.9
4.5
6.7
8.7
5.5
2.5
.3
-.7
-.7
-.2
-.2
-.3
-.2
-.3
-.1
.4
.1
112.3
120.1
15.9
-15.6
8.5
-3.3
17.8
2.8
-7.9
12.3
12.5
16.9
48.3
10.3
-18.7
22.3
-9.8
-1.1
-5.6
.0
-2.4'
-1.3'
-1.6'
-1.1
2.1
-1.5
1.7
-6.7
1.2
-.8
3.5
.3
108.3
76.2
137.2
5
6
PRODUCER PRICES
(1982=100)
8
9
10
11
Finished goods
Consumer foods
Consumer energy
Other consumer goods
Capital equipment
12
13
Intermediate materials3
Excluding energy
'/
Crude materials
Foods
Energy
lb
Other
14
15
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers and reflect a
rental equivalence measure of homeownership after 1982.
.r
.2
.2
,<y
1.3R
-.6'
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.
Selected Measures
A53
2.16 GROSS NATIONAL PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1989
1988
Account
1986
1987
1988
Q3
Q4
Ql
Q2
Q3
GROSS NATIONAL PRODUCT
1
Total
4,231.6
4,524.3
4,880.6
4,926.9
5,017.3
5,113.1
5,201.7
5,273.2
2
3
4
5
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
2,797.4
406.0
942.0
1,449.5
3,010.8
421.0
998.1
1,591.7
3,235.1
455.2
1,052.3
1,727.6
3,263.4
452.5
1,066.2
1,744.7
3,324.0
467.4
1,078.4
1,778.2
3,381.4
466.4
1,098.3
1,816.7
3,444.1
471.0
1,121.5
1,851.7
3,509.5
490.4
1,128.9
1,890.1
659.4
652.5
435.2
139.0
296.2
217.3
699.9
670.6
444.3
133.8
310.5
226.4
750.3
719.6
487.2
140.3
346.8
232.4
771.1
726.5
493.2
142.0
351.3
233.2
752.8
734.1
495.8
142.5
353.3
238.4
769.6
742.0
503.1
144.7
358.5
238.8
775.0
747.6
512.5
142.4
370.1
235.1
791.0
755.8
521.2
145.4
375.8
234.6
6.9
8.6
29.3
30.5
30.6
34.2
44.6
41.5
18.7
40.8
27.7
19.1
27.4
23.6
35.1
27.6
-97.4
396.5
493.8
-112.6
448.6
561.2
-73.7
547.7
621.3
-66.2
556.8
623.0
-70.8
579.7
650.5
-54.0
605.6
659.6
-50.6
626.1
676.6
-67.7
618.6
686.3
872.2
366.5
505.7
926.1
381.6
544.5
968.9
381.3
587.6
958.6
367.5
591.0
1,011.4
406.4
604.9
1,016.0
399.0
617.0
1,033.2
406.0
627.2
1,040.5
403.1
637.4
4,224.8
1,686.7
724.2
962.5
2,119.3
425.6
4,495.0
1,785.2
777.6
1,007.6
2,304.5
434.6
4,850.0
1,931.9
863.6
1,068.3
2,499.2
449.5
4,882.3
1,955.8
884.0
1,071.8
2,520.3
450.8
4,998.7
1,987.4
888.5
1,098.9
2,570.0
459.9
5,085.4
2,030.9
894.7
1,136.2
2,620.8
461.3
5,174.3
2,079.1
905.2
1,173.9
2,667.5
455.1
5,238.1
2,102.7
935.4
1,167.4
2,711.1
459.4
6.9
1.2
5.6
29.3
22.0
7.2
30.6
25.0
5.6
44.6
41.4
3.2
18.7
32.0
-13.3
27.7
22.0
5.7
27.4
6.0
21.4
35.1
10.5
24.6
3,717.9
3,853.7
4,024.4
4,042.7
4,069.4
4,106.8
4,132.5
4,158.1
6
7
8
9
10
11
12
13
Gross private domestic investment
Fixed investment
Nonresidential
Structures
Producers' durable equipment
Residential structures
Change in business inventories
Nonfarm
14
15
16
Net exports of goods and services
Exports
Imports
17
18
19
Government purchases of goods and services
Federal
State and local
20
21
22
23
24
25
By major type of product
Final sales, total
Goods
Durable
Nondurable
Services
Structures
26
27
28
Change in business inventories
Durable goods
Nondurable goods
29
Total GNP in 1982 dollars
MEMO
NATIONAL INCOME
30
Total
3,412.6
3,665.4
3,972.6
4,005.7
4,097.4
4,185.2
4,249.6
n.a.
31
32
33
34
35
36
37
Compensation of employees
Wages and salaries
Government and government enterprises
Other
Supplement to wages and salaries
Employer contributions for social insurance
Other labor income
2,511.4
2,094.8
393.7
1,701.1
416.6
217.3
199.3
2,690.0
2,249.4
419.2
1,830.1
440.7
227.8
212.8
2,907.6
2,429.0
446.5
1,982.5
478.6
249.7
228.9
2,935.1
2,452.2
449.6
2,002.6
482.9
251.8
231.1
2,997.2
2,505.1
456.3
2,048.9
492.0
255.6
236.5
3,061.7
2,560.7
466.9
2,093.8
501.0
259.7
241.3
3,118.2
2,608.8
473.5
2,135.3
509.4
263.4
246.0
3,170.5
2,653.3
480.2
2,173.0
517.2
266.6
250.7
38
39
40
Proprietors' income1
Business and professional
Farm 1
282.0
247.2
34.7
311.6
270.0
41.6
327.8
288.0
39.8
327.0
289.3
37.7
328.3
296.3
32.0
359.3
300.3
59.0
355.5
304.2
51.3
345.4
308.2
37.2
41
Rental income of persons 2
11.6
13.4
15.7
16.3
16.1
11.8
9.8
42
43
44
45
Corporate profits1
Profits before tax
Inventory valuation adjustment
Capital consumption adjustment
282.1
221.6
6.7
53.8
298.7
266.7
-18.9
50.9
328.6
306.8
-25.0
46.8
330.9
314.4
-30.4
46.9
340.2
318.8
-20.1
41.5
316.3
318.0
-38.3
36.6
307.8
296.0
-20.7
32.3
n.a.
n.a.
n.a.
46
Net interest
325.5
351.7
392.9
396.4
415.7
436.1
458.4
470.7
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).
4.8
26.6
A54
Domestic Nonfinancial Statistics • December 1989
2.17 PERSONAL INCOME AND SAVING
Billions of c u r r e n t d o l l a r s ; q u a r t e r l y d a t a a r e at s e a s o n a l l y a d j u s t e d a n n u a l r a t e s . E x c e p t i o n s n o t e d .
1989
1988
Account
1986
1987
1988
Q2
Q3
4,317.8
4,400.3
4,456.5
2,505.1
714.7
538.1
587.5
746.7
456.3
2,560.7
726.6
546.3
598.8
768.4
466.9
2,608.8
733.7
549.9
610.8
790.8
473.5
2,653.3
742.0
555.5
619.6
811.5
480.2
236.5
328.3
296.3
32.0
16.1
106.4
598.6
593.8
304.0
241.3
359.3
300.3
59.0
11.8
109.4
629.0
616.4
316.9
246.0
355.5
304.2
51.3
9.8
111.4
655.1
626.8
322.9
250.7
345.4
308.2
37.2
4.8
113.2
669.2
635.5
327.6
Q3
Q4
4,064.5
4,097.6
4,185.2
Ql
PERSONAL INCOME A N D SAVING
1 Total personal income
3,526.2
2 Wage and salary disbursements
Commodity-producing industries
3
Manufacturing
4
5
Distributive industries
Service industries
6
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
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
3,777.6
2,094.8
625.6
473.2
498.8
576.7
393.7
2,249.4
649.9
490.3
531.9
648.3
419.2
2,429.0
696.3
524.0
571.9
714.4
446.5
2,452.2
701.6
527.2
578.0
723.0
449.6
199.3
282.0
247.2
34.7
11.6
85.8
493.2
521.5
269.2
212.8
311.6
270.0
41.6
13.4
92.0
523.2
548.2
282.9
228.9
327.8
288.0
39.8
15.7
102.2
571.1
584.7
300.5
231.1
327.0
289.3
37.7
16.3
103.6
576.3
587.4
301.4
161.9
172.9
194.9
196.4
199.6
210.0
213.0
215.5
3,526.2
3,777.6
4,064.5
4,097.6
4,185.2
4,317.8
4,400.3
4,456.5
512.9
571.7
586.6
585.9
597.8
628.3
652.6
646.6
20 EQUALS: Disposable personal income
3,013.3
3,205.9
3,477.8
3,511.7
3,587.4
3,689.5
3,747.7
3,809.8
21
LESS: Personal outlays
2,888.5
3,104.1
3,333.1
3,362.1
3,424.0
3,483.8
3,547.0
3,613.8
22 EQUALS: Personal saving
124.9
101.8
144.7
149.6
163.4
205.7
200.7
196.0
15,385.5
10,123.7
10,905.0
4.1
15,793.9
10,302.0
10,970.0
3.2
16,332.8
10,545.5
11,337.0
4.2
16,387.1
10,572.0
11,377.0
4.3
16,455.3
10,625.6
11,466.0
4.6
16,566.4
10,653.5
11,625.0
5.6
16,629.8
10,678.9
11,622.0
5.4
16,692.5
10,803.7
11,726.0
5.1
525.3
553.8
642.4
669.8
647.4
693.5
695.8
n.a.
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
27 Gross saving
28
29
30
31
Gross private saving
Personal saving
Undistributed corporate profits
Corporate inventory valuation adjustment
Capital consumption
32 Corporate
33 Noncorporate
allowances
34
Government surplus, or deficit ( - ) , national income and
36
State and local
38 Gross private domestic
39 Net foreign
40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
669.5
124.9
84.5
6.7
663.8
101.8
75.3
-18.9
738.6
144.7
80.3
-25.0
742.4
149.6
77.6
-30.4
769.3
163.4
81.7
-20.1
792.1
205.7
53.4
-38.3
793.7
200.7
52.0
-20.7
n.a.
196.0
n.a.
n.a.
285.9
174.2
303.1
183.6
321.7
191.9
323.1
192.1
329.7
194.4
335.2
197.8
339.7
201.3
n.a.
n.a.
-144.1
-206.9
62.8
-110.1
-161.4
51.3
-96.1
-145.8
49.7
-72.7
-122.5
49.8
-121.9
-167.6
45.7
-98.7
-147.5
48.8
-97.9
-145.4
47.5
n.a.
0.0
n.a.
523.6
549.0
632.8
661.2
630.8
669.3
677.5
675.1
659.4
-135.8
699.9
-150.9
750.3
-117.5
771.1
-109.9
752.8
-122.0
769.6
-100.3
775.0
-97.5
791.0
-115.9
-1.8
-4.7
-9.6
-8.6
-16.6
-24.1
-18.3
SOURCE. Survey of Current Business (Department of Commerce).
n.a.
Summary Statistics
3.10 U.S. INTERNATIONAL TRANSACTIONS
A55
Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted. 1
1989
1988
Item credits or debits
1 Balance on current account
2 Not seasonally adjusted
3 Merchandise trade balance
Merchandise exports
4
5
Merchandise imports
6
Military transactions, net
Investment income, net
7
Other service transactions, net
8
9
Remittances, pensions, and other transfers .
10 U.S. government grants (excluding military)
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )
1986
1987
1988
Q2
Q3
Q4
Ql
Q2
-32,340
-36,926
-30,339
80,604
-110,943
-1,006
12,806
4,971
-1,088
-2,288
-28,677
-28,191
-32,019
83,729
-115,748
-1,604
21,329
5,475
-1,090
-3,928
-30,390
-25,994
-28,378
87,919
-116,297
-1,498
15,527
5,428
-1,186
-2,340
-30,988
-30,779
-27,718
90,866
-118,584
-1,630
14,422
6,469
-952
-2,142
-133,249
-143,700
-126,548
-145,058
223,367
-368,425
-4,577
60,629
10,517
-4,049
-11,730
-159,500
250,266
-409,766
-2,856
71,151
10,585
-4,063
-10,149
-127,215
319,251
-446,466
-4,606
61,974
17,702
-4,279
-10,377
-33,485
-33,875
-31,411
78,471
-109,882
-1,033
11,536
4,323
-971
-1,928
-2,024
997
2,999
-885
1,961
3,413
1,049
-372
12 Change in U.S. official reserve assets (increase, - ) .
13 Gold
14 Special drawing rights (SDRs)
15 Reserve position in International Monetary Fund.
16 Foreign currencies
312
0
-246
1,501
-942
9,149
0
-509
2,070
7,588
-3,566
0
474
1,025
-5,064
39
0
180
69
-210
-7,380
0
-35
202
-7,547
2,271
0
173
307
1,791
-4,000
0
-188
316
-4,128
-12,095
0
68
-159
-12,004
17 Change in U.S. private assets abroad (increase, - ) .
18 Bank-reported claims
19 Nonbank-reported claims
20
U.S. purchase of foreign securities, net
21
U.S. direct investments abroad, net
-97,953
-59,975
-7,396
-4,271
-26,311
-86,363
-42,119
5,201
-5,251
-44,194
-81,544
-54,481
-1,684
-7,846
-17,533
-15,273
-12,602
-6,443
1,333
2,439
-32,467
-26,229
255
-1,592
-4,901
-38,332
-30,916
4,569
-3,047
-8,938
-28,367
-22,132
1,835
-2,568
-5,502
19,943
28,527
-5,908
-2,676
35,594
34,364
-1,214
2,141
1,187
-884
45,193
43,238
1,564
-2,520
3,918
-1,007
38,882
41,683
1,309
-1,284
-331
-2,495
5,895
5,853
202
-517
774
-417
-2,234
-3,769
572
-232
1,703
-508
10,589
11,897
697
-232
-1,036
-737
7,477
4,634
721
-304
1,974
452
-4,948
-9,763
-92
396
3,924
587
186,011
79,783
-2,641
3,809
70,969
34,091
172,847
89,026
2,450
-7,643
42,120
46,894
180,417
68,832
6,558
20,144
26,448
58,435
59,438
30,455
-59
5,458
9,699
13,885
48,413
23,291
2,350
3,422
7,454
11,896
70,170
32,223
2,702
5,336
6,871
23,038
52,529
13,261
2,852
8,590
8,665
19,161
1,831
-22,822
0
11,308
0
1,878
0
-10,641
0
-15,729
-3,714
0
24,047
-4,556
0
-19,434
4,431
0
1,702
4,127
0
26,629
-2,340
11,308
1,878
-10,641
-12,015
28,603
-23,865
-2,425
28,969
22 Change in foreign official assets in United States (increase,
23
24
25
26
27
+)
U.S. Treasury securities
Other U.S. government obligations
Other U.S. government liabilities
Other U.S. liabilities reported by U.S. banks 3
Other foreign official assets
28 Change in foreign private assets in United States (increase,
+)
,
29
U.S. bank-reported liabilities3
30 U.S. nonbank-reported liabilities
31 Foreign private purchases of U.S. Treasury securities, net
32 Foreign purchases of other U.S. securities, net
33 Foreign direct investments in United States, net
34 Allocation of SDRs
35 Discrepancy
36 Owing to seasonal adjustments
37 Statistical discrepancy in recorded data before seasonal
adjustment
MEMO
Changes in official assets
U.S. official reserve assets (increase, - )
Foreign official assets in United States (increase, +)
excluding line 25
40 Change in Organization of Petroleum Exporting Countries
official assets in 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
-3,566
39
-7,380
2,271
-4,000
-12,095
33,453
47,713
40,166
6,412
-2,002
10,821
7,781
-5,344
-9,327
-9,955
-3,109
-1,776
-459
672
7,143
281
96
53
92
4
7
40
12
14
1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and
38-41.
2. Data are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing. Military
exports are excluded from merchandise data and are included in line 6.
3. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
2,722
9,600
12,331
4. Primarily associated with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
NOTE. Data are from Bureau of Economic Analysis, Survey of Current
Business (Department of Commerce).
A56
3.11
International Statistics • December 1989
U.S. FOREIGN TRADE1
Millions of dollars; monthly data are seasonally adjusted.
1989
Item
1986
1987
1988
Feb.
Mar.
Apr.
May
June
July'
Aug."
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments, f.a.s. value
227,158
254,073
322,426
28,839
30,065
30,759
30,455
31,286
30,468
30,408
GENERAL IMPORTS including
merchandise for immediate
consumption plus entries into
bonded warehouses
2
Customs value
365,438
406,241
440,952
38,220
39,549
39,045
40,534
39,293
38,709
41,180
-138,279
-152,169
-118,526
-9,381
-9,485
-8,286
-10,079
-8,007
-8,241
-10,772
Trade balance
3
Customs value
1. The Census basis data differ from merchandise trade data shown in table
3.10, U.S. International Transactions Summary, for reasons of coverage and
timing. On the export side, the largest adjustment is the exclusion of military sales
(which are combined with other military transactions and reported separately in
the "service account" in table 3.10, line 6). On the import side, additions are made
for gold, ship purchases, imports of electricity from Canada, and other transac-
tions; military payments are excluded and shown separately as indicated above.
As of Jan. 1, 1987 census data are released 45 days after the end of the month; the
previous month is revised to reflect late documents. Total exports and the trade
balance reflect adjustments for undocumented exports to Canada.
SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade"
(Department of Commerce, Bureau of the Census).
3.12 U.S. RESERVE ASSETS
Millions of dollars, end of period
1989
Type
1986
1987
1988
Mar.
Apr.
May
June
July
Aug.
Sept."
1 Total
43,186
48,511
45,798
49,854
50,303
54,941
60,502
63,462
62,364
68,418
2 Gold stock, including Exchange
Stabilization Fund 1
11,090
11,064
11,078
11,061
11,061
11,060
11,063
11,066
11,066
11,065
7,293
8,395
10,283
9,443
9,379
9,134
9,034
9,340
9,240
9,487
11,947
11,730
11,349
9,052
9,132
8,513
8,888
9,055
8,644
8,786
12,856
17,322
13,088
20,298
20,731
26,234
31,517
34,001
33,413
39,080
3
Special drawing rights2'3
4 Reserve position in International
Monetary Fund
5
Foreign currencies 4
1. Gold held under earmark at Federal Reserve Banks for foreign and international accounts is not included in the gold stock of the United States; see table
3.13. Gold stock is valued at $42.22 per fine troy ounce.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of member countries.
From July 1974 through December 1980, 16 currencies were used; from January
1981, 5 currencies have been used. The U.S. SDR holdings and reserve position
in the IMF also are valued on this basis beginning July 1974.
3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus transactions in SDRs.
4. Valued at current market exchange rates.
3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS 1
Millions of dollars, end of period
1989
Assets
1986
1987
1988
Mar.
1 Deposits
Assets held in custody
2 U.S. Treasury securities2
3 Earmarked gold
May
June
July
Aug.
Sept.
p
287
244
347
351
352
428
275
371
265
325
155,835
14,048
195,126
13,919
232,547
13,636
234,075
13,602
235,145
13,576
232,004
13,612
229,914
13,545
233,170
13,530
238,007
13,516
235,597
13,506
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
A57
Balance Sheet Data1
Millions of dollars, end of period
1989
Asset account
1986
1987
1988
Feb.
Mar.
Apr.
May
June
July
Aug.
All foreign countries
1 Total, all currencies
7 Claims on United States
Parent bank
4 Other banks in United States
5 Nonbanks
6 Claims on foreigners
7 Other branches of parent bank
8 Banks
9 Public borrowers
10 Nonbank foreigners
456,628
518,618
506,062
501,682
519,740
517,276
521,436
523,674
534,200r
523,689
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
169,111
129,856
14,918
24,337
299,728
107,179
96,932
17,163
78,454
168,558
128,115
13,506
26,937
296,240
103,962
95,696
16,682
79,900
177,902
134,002
14,697
29,203
303,906
110,434
97,723
17,020
78,729
171,136
128,567
13,459
29,110
305,483
113,824
96,830
16,101
78,728
177,987
134,026
13,040
30,921
302,808
116,506
94,042
16,095
76,165
177,445
132,380
14,218
30,847
303,720
115,913
94,902
16,709
76,196
179,615
133,135
15,744
30,736
310,426'
117,438
95,621''
16,948'
80,419'
177,346
134,526
15,225
27,595
300,185
110,001
92,267
16,660
81,257
29,110
38,064
37,223
36,884
37,932
40,657
40,641
42,509
44,159'
46,158
12 Total payable in U.S. dollars
317,487
350,107
358,040
346,990
366,403
359,841
366,315
367,562
371,851'
370,828
13 Claims on United States
14 Parent bank
15 Other banks in United States
16 Nonbanks
17 Claims on foreigners
18 Other branches of parent bank
19 Banks
20 Public borrowers
21 Nonbank foreigners
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
163,456
126,929
14,167
22,360
177,685
80,736
54,884
12,131
29,934
161,336
124,288
12,025
25,023
168,293
76,565
50,013
11,781
29,934
170,091
129,431
13,259
27,401
178,134
82,797
53,893
11,831
29,613
163,964
124,268
12,539
27,157
178,298
86,767
50,815
11,467
29,249
169,796
128,771
11,909
29,116
177,308
86,625
49,793
11,282
29,608
169,520
127,352
13,207
28,961
180,013
88,874
50,627
11,815
28,697
171,041
128,063
14,734
28,244
181,441'
90,077
49,913'
11,616'
29,835'
170,545
130,216
14,688
25,641
178,808
84,130
50,685
11,776
32,217
11,804
15,656
16,899
17,361
18,178
17,579
19,211
18,029
19,369'
21,475
11 Other assets
22 Other assets
United Kingdom
23 Total, all currencies
140,917
158,695
156,835
154,879
154,856
153,146
155,532
153,968
161,882
158,869
24 Claims on United States
25 Parent bank
26 Other banks in United States
77 Nonbanks
28 Claims on foreigners
79 Other branches of parent bank
30 Banks
31 Public borrowers
32 Nonbank foreigners
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
40,089
34,243
1,123
4,723
106,388
35,625
36,765
4,019
29,979
40,547
34,449
1,268
4,830
103,806
33,650
36,159
3,808
30,189
40,715
35,315
1,380
4,020
103,443
35,305
35,382
3,757
28,999
39,475
34,741
1,227
3,507
102,438
32,954
37,079
3,471
28,934
39,599
35,642
1,243
2,714
104,504
35,537
37,412
3,627
27,928
38,014
33,763
1,125
3,126
103,773
34,948
37,357
3,599
27,869
42,147
37,713
1,121
3,313
106,586
35,440
36,519
3,788
30,839
41,914
38,031
1,112
2,771
102,015
32,392
35,857
3,586
30,180
6,810
10,477
10,358
10,526
10,698
11,233
11,429
12,181
13,149
14,940
34 Total payable in U.S. dollars
95,028
100,574
103,503
100,863
103,211
98,463
101,612
99,028
103,512
104,416
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
Nonbank foreigners
43
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
38,012
33,252
964
3,796
60,472
28,474
18,494
2,840
10,664
37,707
33,106
816
3,785
57,567
26,475
17,246
2,774
11,072
38,265
34,320
937
3,008
59,201
28,145
17,715
2,786
10,555
36,772
33,499
872
2,401
56,227
25,389
17,680
2,696
10,462
36,675
34,119
862
1,694
58,395
26,036
18,458
2,737
11,164
34,990
32,059
844
2,087
58,746
26,541
18,745
2,606
10,854
38,506
36,041
821
1,644
59,137
27,955
17,080
2,702
11,400
39,135
36,375
1,007
1,753
57,490
25,368
18,082
2,679
11,361
3,697
5,575
5,019
5,589
5,745
5,464
6,542
5,292
5,869
7,791
33 Other assets
44 Other assets
Bahamas and Caymans
45 Total, all currencies
46 Claims on United States
47 Parent bank
48 Other banks in United States
49 Nonbanks
50 Claims on foreigners
51 Other branches of parent bank
57 Banks
53 Public borrowers
54 Nonbank foreigners
55 Other assets
56 Total payable in U.S. dollars
142,592
160,321
170,639
165,862
179,185
172,324
173,137
171,780
172,789'
165,401
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
105,320
73,409
13,145
18,766
58,393
17,954
28,268
5,830
6,341
103,989
71,100
11,563
21,326
54,732
18,454
24,514
5,513
6,251
111,951
75,234
12,275
24,442
59,615
20,048
27,727
5,480
6,360
105,273
68,969
11,563
24,741
60,103
26,261
22,641
5,374
5,827
111,823
73,627
10,807
27,389
53,984
21,962
21,184
5,280
5,558
109,800
70,735
12,116
26,949
54,537
22,324
21,202
5,540
5,471
107,831
67,417
13,712
26,702
57,135'
24,462
21,591'
5,405'
5,677'
106,693
69,404
13,294
23,995
50,808
16,802
20,688
5,407
7,911
4,539
4,841
6,926
7,141
7,619
6,948
7,330
7,443
7,823'
7,900
136,813
151,434
163,518
158,011
172,148
166,389
166,869
165,676
167,259'
160,821
1. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
A58
International Statistics • December 1989
3.14—Continued
1989
Liability account
1986
1987
Feb.
Mar.
Apr.
May
June
July
All foreign countries
57 Total, all currencies
456,628
518,618
506,062
501,682
519,740
517,276
521,436
523,674
534,200 r
523,689
58 Negotiable CDs
59 To United States
60
Parent bank
61
Other banks in United States
62
Nonbanks
31,629
152,465
83,394
15,646
53,425
30,929
161,390
87,606
20,355
53,429
28,511
185,577
114,720
14,737
56,120
30,013
174,956
105,687
12,829
56,440
30,768
185,831
113,779
14,499
57,553
30,278
179,292
109,164
14,307
55,821
29,425
178,821
110,579
13,564
54,678
28,116
179,858
113,250
12,951
53,657
28,882
177,706''
110,121'
13,323 r
54,262'
29,524
177,487
110,638
13,269
53,580
63 To foreigners
64
Other branches of parent bank
65
Banks
66
Official institutions
67
Nonbank foreigners
68 Other liabilities
253,775
95,146
77,809
17,835
62,985
18,759
304,803
124,601
87,274
19,564
73,364
21,496
270,923
111,267
72,842
15,183
71,631
21,051
274,898
111,582
70,484
17,323
75,509
21,815
280,859
116,148
71,447
17,911
75,353
22,282
282,920
115,380
72,155
17,933
77,452
24,786
288,291
121,135
72,903
17,795
76,458
24,899
289,603
118,950
74,213
17,559
78,881
26,097
301,422'
119,571'
80,070'
18,846
82,935'
26,190'
289,804
114,487
76,024
17,589
81,704
26,874
69 Total payable in U.S. dollars
336,406
361,438
367,483
357,725
379,610
372,788
376,474
378,331
381,879'
380,934
70 Negotiable CDs
71 To United States
72
Parent bank
73
Other banks in United States
74
Nonbanks
28,466
144,483
79,305
14,609
50,569
26,768
148,442
81,783
18,951
47,708
24,045
173,190
107,150
13,468
52,572
25,452
161,449
96,714
11,375
53,360
26,287
173,471
105,534
13,195
54,742
25,970
166,666
100,897
12,781
52,988
25,411
166,134
102,643
11,944
51,547
24,129
167,217
104,929
11,537
50,751
24,914
163,771'
100,521'
11,845'
51,405'
25,483
165,985
103,117
11,964
50,904
75 To foreigners
76
Other branches of parent bank
77
Banks
78
Official institutions
79
Nonbank foreigners
80 Other liabilities
156,806
71,181
33,850
12,371
39,404
6,651
177,711
90,469
35,065
12,409
39,768
8,517
160,766
84,021
28,493
8,224
40,028
9,482
160,670
83,253
27,060
8,740
41,617
10,154
169,407
88,298
28,949
9,953
42,207
10,445
169,758
87,716
28,445
9,591
44,006
10,394
173,228
90,123
29,567
9,255
44,283
11,701
175,393
90,850
29,686
9,852
45,005
11,592
181,005'
91,713'
31,216
11,176
46,900'
12,189'
176,482
87,858
32,354
10,680
45,590
12,984
161,882
158,869
United Kingdom
81 Total, all currencies
140,917
158,695
156,835
154,879
154,856
153,146
155,532
153,968
82 Negotiable CDs
83 To United States
84
Parent bank
85
Other banks in United States
86
Nonbanks
27,781
24,657
14,469
2,649
7,539
26,988
23,470
13,223
1,536
8,711
24,528
36,784
27,849
2,037
6,898
25,942
35,393
25,562
1,755
8,076
26,625
32,757
25,098
1,824
5,835
26,157
29,715
20,455
1,551
7,709
25,539
30,867
20,329
1,720
8,818
24,396
30,013
21,892
1,648
6,473
25,342
29,954'
19,680
1,852
8,422'
25.905
31,551
21,561
1,767
8,223
87 T o foreigners
88
Other branches of parent bank
89
Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities
79,498
25,036
30,877
6,836
16,749
8,981
98,689
33,078
34,290
11,015
20,306
9,548
86,026
26,812
30,609
7,873
20,732
9,497
83,774
24,553
28,508
8,627
22,086
9,770
85,863
25,781
29,094
9,429
21,559
9,611
87,478
25,800
30,714
8,637
22,327
9,796
88,985
26,867
30,925
8,946
22,247
10,141
88,381
24,974
31,066
8,650
23,691
11,178
94,335'
26,556'
33,047'
9,586
25,146
12,251
88,661
24,326
30,790
8,868
24,677
12,752
93 Total payable in U.S. dollars
99,707
102,550
105,907
104,430
107,092
102,065
104,356
101,742
105,700
106,915
94 Negotiable CDs
95 To United States
96
Parent bank
97
Other banks in United States
98
Nonbanks
26,169
22,075
14,021
2,325
5,729
24,926
17,752
12,026
1,308
4,418
22,063
32,588
26,404
1,752
4,432
23,419
30,442
22,998
1,440
6,004
24,302
29,578
24,013
1,559
4,006
24,073
25,493
18,524
1,227
5,742
23,568
26,554
18,545
1,368
6,641
22,324
25,401
19,411
1,393
4,597
23,132
24,618'
16,704
1,477
6,437'
23,679
27,232
19,300
1,502
6,430
99 To foreigners
100
Other branches of parent bank
101
Banks
102
Official institutions
103
Nonbank foreigners
104 Other liabilities
48,138
17,951
15,203
4,934
10,050
3,325
55,919
22,334
15,580
7,530
10,475
3,953
47,083
18,561
13,407
4,348
10,767
4,173
46,062
17,139
13,106
4,116
11,701
4,507
48,221
18,335
12,907
5,467
11,512
4,991
47,781
17,755
13,439
4,365
12,222
4,718
49,006
18,030
13,930
4,796
12,250
5,228
48,491
16,467
13,545
5,579
12,900
5,526
52,179'
18,388'
14,173
6,131
13,487
5,771
49,913
17,060
13,578
5,825
13,450
6,091
Bahamas and Caymans
105 Total, all currencies
142,592
160,321
170,639
165,862
179,185
172,324
173,137
171,780
172,789r
165,401
106 Negotiable CDs
107 To United States
108
Parent bank
109
Other banks in United States
110
Nonbanks
847
106,081
49,481
11,715
44,885
885
113,950
53,239
17,224
43,487
953
122,332
62,894
11,494
47,944
1,138
114,729
57,684
9,743
47,302
1,073
124,736
62,689
11,464
50,583
1,025
118,164
59,762
11,346
47,056
872
120,175
64,908
10,398
44,869
696
117,737
61,642
10,034
46,061
717
116,261r
61,263'
10,197r
44,801 r
691
113,122
58,765
10,076
44,281
34,400
12,631
8,617
2,719
10,433
1,264
43,815
19,185
10,769
1,504
12,357
1,671
45,161
23,686
8,336
1,074
12,065
2,193
47,534
25,988
7,795
1,379
12,372
2,461
50,855
28,010
8,495
1,234
13,116
2,521
50,606
27,655
8,203
1,722
13,026
2,529
48,989
26,478
8,233
1,164
13,114
3,101
50,477
27,763
8,322
1,102
13,290
2,870
52,881 r
29,085
8,309
1,223
14,264'
2,930'
48,769
25,370
9,016
1,081
13,302
2,819
138,774
152,927
162,950
157,890
172,213
166,489
166,954
165,593
166,988 r
160,800
111 To foreigners
112
Other branches of parent bank
113
Banks
114
Official institutions
115
Nonbank foreigners
116 Other liabilities
117 Total payable in U.S. dollars
Summary Statistics
A59
3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1989"
Item
1 Total1
2
3
4
5
6
7
8
9
10
11
12
By type
Liabilities reported by banks in the United States
U.S. Treasury bills and certificates3
U.S. Treasury bonds and notes
Marketable
Nonmarketable
,
U.S. securities other than U.S. Treasury securities
By area
Western Europe 1
Latin America and Caribbean
Africa
Other countries6
1987
1988
Feb.
Mar.
Apr.
May
June
July
Aug."
259,556
299,677
304,099
307,667
313,637
306,420
302,048
307,433
317,382
31,838
88,829
31,414
103,722
34,567
98,192
33,594
95,478
39,116
96,109
38,036
91,798
37,214
87,190
39,108
87,734
37,914
88,325
122,432
300
16,157
149,056
523
14,962
155,374
531
15,435
161,923
534
16,138
161,081
538
16,793
160,013
542
16,031
160,462
545
16,637
163,281
549
16,761
173,261
553
17,329
124,620
4,961
8,328
116,098
1,402
4,147
125,097
9,584
10,099
145,504
1,369
7,501
124,806
9,856
8,866
152,159
1,143
6,738
125,584
10,156
7,524
156,264
1,119
6,485
129,254
9,994
7,168
158,564
1,065
7,053
126,222
9,938
6,091
156,073
1,182
6,371
122,502
9,604
5,925
155,372
1,271
6.830
126,361
9,424
7,166
155,875
949
7,113
134,072
9,560
7,988
157,135
810
7,267
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
1989
1988
Item
1 Banks' own liabilities
2 Banks' own claims
3 Deposits
4 Other claims
5 Claims of banks' domestic customers
1985
15,368
16,294
8,437
7,857
580
1. Data on claims exclude foreign currencies held by U.S. monetary authorities.
1986
29,702
26,180
14,129
12,052
2,507
1987
55,438
51,271
18,861
32,410
551
Sept.
Dec.
Mar.
June
65,379
63,448
22,594
40,854
335
74,836
68,983
25,100
43,884
364
76,262
72,812
25,846
46,966
376
68,312
62,794
23,877
38,917
723
2. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the accounts
of the domestic customers.
A60
International Statistics • December 1989
3.17 LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Reported by Banks in the United States1
Millions of dollars, end of period
1989
Holder and type of liability
1986
1987
1988
Feb.'
Mar.'
Apr.'
May'
June'
July
Aug."
1 All foreigners
540,996
618,874
684,444
677,627
691,295
682,850
678,059
672,049
663,806
679,227
2 Banks' own liabilities
3 Demand deposits
4 Time deposits
5 Other 3
6 Own foreign offices4
406,485
23,789
130,891
42,705
209,100
470,070
22,383
148,374
51,677
247,635
513,840
21,863
152,020
51,525
288,432
507,364
21,723
151,032
50,921
283,687
523,798
22,473
157,734
54,552
289,039
516,025
22,325
156,982
56,413
280,304
512,334
21,920
154,768
58,822
276,824
510,524
21,224
152,801
61,317
275,183
501,622
21,351
149,189
64,859
266,223
516,180
19,972
154,712
63,991
277,505
134,511
90,398
148,804
101,743
170,604
115,056
170,263
111,064
167,497
108,117
166,825
106,916
165,725
102,734
161,525
98,893
162,184
99,365
163,047
99,624
15,417
28,696
16,776
30,285
16,426
39,121
17,115
42,084
16,991
42,389
17,278
42,631
18,541
44,451
17,078
45,555
16,893
45,925
17,255
46,168
11 Nonmonetary international and regional
organizations
5,807
4,464
3,224
3,261
3,773
4,002
3,415
3,617
4,240
4,418
12 Banks' own liabilities
13 Demand deposits
14 Time deposits
15 Other 3
3,958
199
2,065
1,693
2,702
124
1,538
1,040
2,527
71
1,183
1,272
2,688
74
1,135
1,479
2,965
88
1,394
1,482
3,216
163
1,502
1,551
2,980
76
1,202
1,702
2,695
32
1,254
1,409
2,716
41
918
1,756
3,402
66
1,079
2,257
16 Banks' custody liabilities5
17 U.S. Treasury bills and certificates6
18 Other negotiable and readily transferable
instruments7
19 Other
1,849
259
1,761
265
698
57
574
59
808
74
786
77
435
95
922
181
1,524
345
1,016
107
1,590
0
1,497
0
641
0
463
52
734
0
693
16
305
35
731
10
1,179
0
909
1
7 Banks' custody liabilities5 .:
8
U.S. Treasury bills and certificates 6
9 Other negotiable and readily transferable
instruments
10 Other
103,569
120,667
135,136
132,759
129,072
135,225
129,835
124,404
126,842
126,239
21 Banks' own liabilities
22 Demand deposits
23 Time deposits
24 Other 3
25,427
2,267
10,497
12,663
28,703
1,757
12,843
14,103
27,004
1,915
9,657
15,432
29,247
1,792
12,588
14,867
27,977
1,605
10,852
15,521
33,036
1,782
12,439
18,815
31,738
1,761
11,144
18,833
31,891
1,801
9,924
20,166
34,024
1,947
10,001
22,077
32,981
1,845
8,711
22,425
25 Banks' custody liabilities5
26
U.S. Treasury bills and certificates6
27 Other negotiable and readily transferable
instruments7
28 Other
78,142
75,650
91,965
88,829
108,132
103,722
103,512
98,192
101,095
95,478
102,189
96,109
98,097
91,798
92,513
87,190
92,818
87,734
93,258
88,325
2,347
145
2,990
146
4,130
280
5,076
244
5,466
152
5,875
205
6,114
185
5,080
244
4,821
263
4,735
198
29 Banks10
351,745
414,280
458,672
452,347
469,687
453,554
454,442
451,337
441,474
457,198
30 Banks' own liabilities
31 Unaffiliated foreign banks
32
Demand deposits
33
Time 3deposits
34
Other
35 Own foreign offices4
310,166
101,066
10,303
64,232
26,531
209,100
371,665
124,030
10,898
79,717
33,415
247,635
408,854
120,422
9,950
80,155
30,318
288,432
399,718
116,030
9,584
76,659
29,788
283,687
417,323
128,283
11,012
84,005
33,265
289,039
401,646
121,342
10,560
80,796
29,987
280,304
399,823
122,999
11,162
78,901
32,936
276,824
395,603
120,421
9,677
77,231
33,513
275,183
385,608
119,385
10,145
74,479
34,761
266,223
400,774
123,269
9,135
79,995
34,139
277,505
36 Banks' custody liabilities5
37
U.S. Treasury bills and certificates
38 Other negotiable and readily transferable
instruments7
39 Other
41,579
9,984
42,615
9,134
49,818
7,602
52,629
7,491
52,365
7,310
51,908
6,921
54,619
7,114
55,734
7,759
55,865
7,674
56,424
7,779
5,165
26,431
5,392
28,089
5,725
36,491
5,938
39,200
5,288
39,767
5,051
39,936
5,686
41,819
5,314
42,662
5,326
42,866
5,280
43,365
40 Other foreigners
79,875
79,463
87,411
89,260
88,763
90,068
90,366
92,691
91,250
91,372
41 Banks' own liabilities
42 Demand deposits
43 Time deposits
44 Other3
66,934
11,019
54,097
1,818
67,000
9,604
54,277
3,119
75,456
9,928
61,025
4,503
75,711
10,272
60,651
4,788
75,533
9,767
61,483
4,283
78,126
9,820
62,245
6,060
77,792
8,921
63,521
5,351
80,335
9,714
64,392
6,229
79,274
9,218
63,791
6,265
79,023
8,926
64,926
5,170
45 Banks' custody liabilities5
46 U.S. Treasury bills and certificates
47 Other negotiable and readily transferable
instruments7
48 Other
12,941
4,506
12,463
3,515
11,956
3,675
13,549
5,322
13,230
5,256
11,942
3,809
12,574
3,725
12,356
3,763
11,976
3,612
12,349
3,413
6,315
2,120
6,898
2,050
5,929
2,351
5,638
2,589
5,503
2,471
5,658
2,474
6,436
2,412
5,953
2,639
5,566
2,797
6,332
2,604
7,496'
7,314'
6,425
6,118
5,645
5,554
5,625
5,337
5,261
5,195
20 Official institutions'
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
1989
Area and country
1986
1987
1988
Feb.
Mar.
Apr.
May'
June'
July
Aug."
679,227
1 Total
540,996
618,874
684,444
677,627'
691,295'
682,850"
678,059
672,049
663,806
2 Foreign countries
535,189
614,411
681,219
674,366'
687,522'
678,848'
674,644
668,432
659,566
674,808
180,556
1,181
6,729
482
580
22,862
5,762
700
10,875
5,600
735
699
2,407
884
30,534
454
85,334
630
3,326
80
702
234,641
920
9,347
760
377
29,835
7,022
689
12,073
5,014
1,362
801
2,621
1,379
33,766
703
116,852
710
9,798
32
582
235,989
1,155
10,022
2,180
284
24,762
6,772
672
14,599
5,316
1,559
903
5,494
1,274
34,179
1,012
115,954
529
8,598
138
591
228,364'
1,777
10,502'
2,082
560
24,260
5,257'
933
11,060'
6,011
1,367
813
5,174
1,319
31,659
1,246
113,414'
434
9,929
108
458
232,141'
1,436
9,316
1,639
527
26,824
5,517'
760
13,475'
5,600
1,547
831
4,902
1,416
30,005'
1,024'
115,338'
440
10,771'
102
670'
230,769"
1,608
10,115
1,615
397
25,629"
6,967"
927
12,959"
5,610"
1,783
824
5,795
1,730
29,239'
1,051
111,492
465
11,519
91
953'
228,141
1,405
8,819
1,642
432
24,199
7,791
1,172
12,527
5,870
1,479
985
5,419
1,552
28,448
785
112,622
478
11,887
193
435
226,058
1,505
8,624
1,179
450
23,864
9,198
889
13,951
4,875
1,485
1,089
5,085
1,478
28,806
737
107,300
558
14,322
164
499
226,358
1,414
8,946
1,348
435
22,023
8,759
862
12,871
5,029
1,522
1,414
5,903
1,248
28,576
1,053
109,753
604
13,653
175
771
232,105
1,423
9,267
1,959
456
24,861
7,463
828
14,589
5,097
1,453
1,945
5,333
2,002
28,988
1,284
109,688
708
13,805
202
754
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 1
22
U.S.S.R
23
Other Eastern Europe
26,345
30,095
21,040
20,732
25,694
23,024
18,353
17,514
17,472
16,978
25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
32
Colombia
33
Cuba
34
Ecuador
35
Guatemala
36 Jamaica
37
Mexico
38
Netherlands Antilles
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other
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
5,119r
220,372
5,006
74,767
2,344
4,005
81,494
2,210
4,204
12
1,082
1,082
160
14,480
4,975
7,414
1,275
1,582
9,048
5,234'
266,803
7,804
86,863
2,621
5,304
109,507
2,936
4,374
10
1,379
1,195
269
15,185
6,420
4,353
1,671
1,898
9,147
5,868
263,511'
6,836
83,455
2,545
4,829
111,113'
2,975
4,460'
10
1,403
1,259
170
14,938'
5,641
4,497
1,728
2,142
9,532
5,977'
264,879'
6,416'
85,673'
2,518'
4,926'
110,962'
3,063
4,157'
10
1,422
1,271
223
14,694'
5,666
4,391'
1,705'
2,243
9,489
6,048'
266,446'
6,280
86,057'
2,373'
5,554
111,969'
2,933
4,173
10
1,376
1,272
222
14,367'
5,769'
4,355
1,763
2,263
9,565
6,145'
270,431
6,459
90,979
2,451
5,302
111,270
2,988
4,033
15
1,285
1,232
188
14,060
6,072
4,454
1,724
2,344
9,435
6,140
266,509
6,320
82,104
2,356
5,026
116,607
2,733
4,127
10
1,351
1,251
294
14,211
6,316
4,278
1,761
2,429
9,431
5,903
260,711
7,397
84,526
2,269
5,393
107,574
2,683
4,235
9
1,411
1,297
227
13,679
6,434
4,357
1,770
2,152
9,506
5,790
269,497
8,047
90,329
2,209
5,617
109,553
2,814
4,365
10
1,376
1,279
231
13,760
6,065
4,400
1,778
2,121
9,376
6,170
44
108,831
121,288
147,230
151,094'
154,770'
148,676'
147,353
148,339
144,061
145,453
1,476
18,902
9,393
674
1,547
1,892
47,410
1,141
1,866
1,119
12,352
11,058
1,162
21,503
10,180
582
1,404
1,292
54,322
1,637
1,085
1,345
13,988
12,788
1,892
26,058
11,738
699
1,180
1,461
73,957
2,541
1,163
1,236
12,083
13,223
1,602
26,001
11,387
838
1,164'
1,361'
77,374'
2,497'
1,014
1,615
12,372
13,869"
1,588
26,143
10,772'
900
1,588'
1,156
83,013'
2,827
977
1,151
12,029
12,625'
1,809
28,284'
11,403'
1,787
1,154'
967'
72,689'
3,023
973
1,165
12,098
13,324'
1,652
26,928
12,215
1,009
1,306
1,103
70,468
3,166
991
1,162
13,505
13,851
1,432
27,025
12,132
812
1,232
1,088
71,130
3,047
984
1,274
13,612
14,571
1,522
27,125
11,344
871
1,096
1,058
68,660
3,556
936
1,254
12,368
14,271
1,698
25,430
12,271
940
1,042
1,352
70,154
2,897
1,083
1,776
12,517
14,294
4,021
706
92
270
74
1,519
1,360
3,945
1,151
194
202
67
1,014
1,316'
3,991
911
68
437
85
1,017
1,474
3,793
819
69
212
75
1,121
1,4%'
3,717
756
60
226
77
1,062
1,536
3,665
721
82
256
73
1,017
1,516
3,802
702
68
324
92
879
1,737
3,904
748
67
188
98
1,100
1,702
3,618
738
65
231
92
943
1,548
3,263
549
72
201
87
897
1,457
64 Other countries
65
Australia
66
All other
5,118
4,1%
922
4,070
3,327
744
6,165
5,293
872
6,872
6,037
836
6,322
5,490
832
6,267
5,471
7%
6,563
5,700
863
6,108
5,192
916
7,346
6,620
726
7,513
6,721
792
67 Nonmonetary international and regional
organizations
68
International
69
Latin American regional
70
Other regional 6
5,807
4,620
1,033
154
4,464
2,830
1,272
362
3,224
2,503
589
133
3,261'
2,106
741'
414
3,773'
2,546
1,004'
223
4,002"
2,548"
981
472"
3,415
2,456
564
395
3,617
2,830
613
175
4,240
2,881
%1
398
4,418
3,084
690
644
24 Canada
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
57
58
59
60
61
62
63
Egypt
Morocco
South Africa
Zaire
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).
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 Internationa] Settlements, which is included in "Other
Western Europe."
A61
A62
International Statistics • December 1989
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
1989
Area and country
1986
1987
1988
Feb.
Mar.
Apr.
May
June
July
Aug."
1 Total
444,745
459,877
491,275
493,482
504,329
495,060
490,811
490,395
481,333
488,557
2 Foreign countries
441,724
456,472
489,205
491,576
502,290
493,225
487,029
486,918
477,546
485,433
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
102,348
793
9,397
717
1,010
13,548
2,039
462
7,460
2,619
934
477
1,853
2,254
2,718
1,680
50,823
1,700
619
389
852
117,048
485
8,518
480
1,065
13,243
2,326
433
7,936
2,547
455
374
1,823
1,977
3,895
1,233
65,708
1,390
1,152
1,255
754
113,939
646
7,717
790
1,114
14,935
1,708
517
5,575
2,475
601
331
2,468
2,622
3,780
1,108
62,437
1,348
1 550
1,389
828
116,640
809
7,834
548
909
15,744
3,110
586
5,866
2,808
432
367
2,449
2,613
3,822
1,039
62,908
1,455
1 262
1,298
780
111,170
805
8,102
770
1,214
16,524
3,529
561
4,803
2,735
551
281
2,624
2,164
4,540
1,005
56,057
1,369
1 415
1,346
775
112,975
764
8,435
470
1,280
16,092
3,959
595
5,627
3,183
567
371
2,209
2,158
3,975
910
58,076
1,366
966
1,155
820
112,240
809
7,780
774
1,175
15,574
3,695
632
6,813
2,025
667
328
2,190
1,946
5,485
886
56,891
1,359
106,446
854
7,558
562
1,433
15,978
3,460
602
5,994
1,945
796
283
2,092
2,003
4,123
891
53,463
1,406
107,453
549
7,510
768
1,401
16,417
3,301
624
5,494
1,447
665
264
1,689
2,046
4,571
960
54,861
1,344
1,212
838
1,227
801
1,456
839
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
?l
22 U.S.S.R
23 Other Eastern Europe 3
24 Canada
345
948
21,006
25,368
18,889
18,079
19,048
19,150
16,072
16,089
14,493
15,077
25 Latin America and Caribbean
26 Argentina
2/
Bahamas
28 Bermuda
29 Brazil
30 British West Indies
31 Chile
32 Colombia
33 Cuba
34
Ecuador
35 Guatemala4
36 Jamaica 4
37
Mexico
38 Netherlands Antilles
39 Panama
40 Peru
41
Uruguay
42 Venezuela
43 Other Latin America and Caribbean
208,825
12,091
59,342
418
25,716
46,284
6,558
2,821
0
2,439
140
198
30,698
1,041
5,436
1,661
940
11,108
1,936
214,789
11,996
64,587
471
25,897
50,042
6,308
2,740
1
2,286
144
188
29,532
980
4,744
1,329
963
10,843
1,738
214,233
11,826
67,006
483
25,735
55,790
5,217
2,944
1
2,075
198
212
24,637
1,321
2,536
1,013
910
10,733
1,597
211,133
11,802
69,607
535
25,373
51,127
5,161
2,813
1
2,026
188
202
24,387
1,159
2,510
952
856
10,959
1,475
220,812
11,616
72,804
707
25,618
57,602
5,335
2,746
1
2,032
199
251
24,188
1,013
2,460
947
875
10,761
1,659
219,970
11,516
75,665
361
25,947
54,424
5,224
2,661
2
2,025
210
266
24,077
1,009
2,433
947
876
10,659
1,668
217,962
11,381
70,552
449
25,785
57,960
5,266
2,600
1
1,944
207
265
24,038
999
2,475
938
832
10,600
1,670
219,267
10,840
66,611
391
25,675
64,870
4,841
2,581
1
1,894
200
286
23,653
1,183
2,438
874
896
10,551
1,482
217,088
10,724
70,448
463
25,831
59,433
4,770
2,523
9
1,932
188
270
23,356
1,168
2,320
867
854
10,268
1,664
215,545
10,729
68,069
522
25,593
61,145
4,780
2,501
1
1,917
202
272
23,127
1,026
2,023
880
866
9,975
1,917
44 Asia
China
Mainland
46
Taiwan
41 Hong Kong
48 India
49 Indonesia
50 Israel
51 Japan
52
Korea
53 Philippines
54 Thailand
55 Middle East oil-exporting countries
56 Other Asia
96,126
106,096
130,906
139,627
137,097
134,439
131,578
130,578
130,948
137,809
787
2,681
8,307
321
723
1,634
59,674
7,182
2,217
578
4,122
7,901
968
4,592
8,218
510
580
1,363
68,658
5,148
2,071
496
4,858
8,635
762
4,184
10,148
560
674
1,136
90,162
5,219
1,876
849
6,213
9,122
881
3,960
7,938
628
735
1,043
104,524
4,891
1,900
931
4,681
7,515
988
4,179
7,900
563
649
1,050
101,501
5,183
1,913
986
5,409
6,776
816
3,952
8,293
425
726
1,052
97,666
5,198
1,839
1,018
5,237
8,217
952
3,715
8,855
411
690
1,045
93,447
5,338
1,810
975
5,522
8,818
920
4,058
8,557
537
671
1,019
91,086
5,615
1,763
1,058
6,550
8,745
644
3,946
8,153
477
645
961
91,764
5,774
1,607
1,061
5,550
10,366
575
3,356
8,779
547
614
902
96,339
5,943
1,535
1,117
8,883
9,218
57 Africa
58 Egypt
59 Morocco
60 South Africa
61 Zaire
62 Oil-exporting countries 6
63 Other
4,650
567
598
1,550
28
694
1,213
4,742
521
542
1,507
15
1,003
1,153
5,718
507
511
1,681
17
1,523
1,479
6,072
567
532
1,718
16
1,522
1,718
5,974
543
541
1,702
17
1,481
1,690
6,087
541
532
1,742
19
1,474
1,778
6,084
541
538
1,753
19
1,504
1,729
6,075
534
531
1,746
17
1,503
1,744
6,066
577
518
1,702
17
1,587
1,664
6,037
488
535
1,709
16
1,614
1,674
64 Other countries
65
Australia
66 All other
3,294
1,949
1,345
3,129
2,100
1,029
2,410
1,517
894
2,726
1,686
1,040
2,720
1,686
1,034
2,409
1,505
905
2,359
1,167
1,192
2,670
1,307
1,363
2,505
1,518
987
3,512
2,515
998
67 Nonmonetary international and regional
organizations
3,021
3,404
2,071
1,905
2,039
1,835
3,782
3,477
3,787
3,124
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 States'
Payable in U.S. Dollars
Millions of dollars, end of period
1989
Type of claim
1986
1988
1987
Feb.
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
9 Claims of banks' domestic customers 3 ...
11
Mar.
Apr.
May
495,060
63,248
259,693
131,104
69,283
61,821
41,016
490,811
63,789
257,271
130,488
67,407
63,081
39,263
497,635
538,799
444,745
64,095
211,533
122,946
57,484
65,462
46,171
459,877
64,605
224,727
127,609
60,687
66,922
42,936
491,275
62,700
257,405
129,487
65,898
63,588
41,684
557,507
33,905
4,413
37,758
3,692
47,524
8,289
53,178
12,084
49,531
11,153
24,044
26,696
25,700
24,960
22,017
5,448
7,370
13,535
16,134
16,362
25,706
23,107
19,568
17,173
16,825
43,984
40,857
45,391
504,329
62,973
271,968
130,111
66,567
63,544
39,278
Aug.''
481,333
63,367
248,677
128,970
68,348
60,622
40,319
488,557
62,568
251,818
132,026
71,678
60,349
42,146
48,206
n.a.
539,927
478,650
493,482
63,521
263,388
123,904
61,939
61,965
42,669
July
June
490,395
62,636
258,020
128,391
68,306
60,085
41,349
Negotiable and readily transferable
12 Outstanding collections and other
13 MEMO: Customer liability on
Dollar deposits in banks abroad,
reported by nonbanking business
enterprises in the United States- . . . .
48,830
47,225
47,897
49,491
46,662
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,
and foreign branches, agencies, or wholly owned subsidiaries of head office or
3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States'
Payable in U.S. Dollars
Millions of dollars, end of period
1989
1988
Maturity; by borrower and area
1
7
3
4
s
6
7
8
9
10
11
1?
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
n
Maturity of 1 year or lessEurope
Canada
Latin America and Caribbean
Asia
Africa
All other 3
Maturity of over 1 yearEurope
Canada
Latin America and Caribbean
Asia
Africa
All other 3
1985
1987
Sept.
Dec.
Mar.
June''
227,903
232,295
235,130
230,608
233,280
231,454
232,277
160,824
26,302
134,522
67,078
34,512
32,567
160,555
24,842
135,714
71,740
39,103
32,637
163,997
25,889
138,108
71,133
38,625
32,507
168,121
29,390
138,731
62,488
35,481
27,007
172,730
26,602
146,128
60,550
35,315
25,235
168,377
24,135
144,242
63,077
37,922
25,155
168,284
23,775
144,509
63,994
38,135
25,859
56,585
6,401
63,328
27,966
3,753
2,791
61,784
5,895
56,271
29,457
2,882
4,267
59,027
5,680
56,535
35,919
2,833
4,003
54,277
6,410
55,730
42,368
3,120
6,216
56,031
6,282
58,004
46,188
3,337
2,888
57,878
5,115
53,268
45,675
3,610
2,831
58,408
5,693
50,763
46,054
3,601
3,765
7,634
1,805
50,674
4,502
1,538
926
6,737
1,925
56,719
4,043
1,539
777
6,696
2,661
53,817
3,830
1,747
2,381
5,307
2,031
48,325
3,943
2,257
625
4,664
1,922
47,548
3,613
2,301
501
4,507
2,309
49,790
3,699
2,292
480
4,614
2,593
50,088
3,818
2,408
472
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
1986
2. Remaining time to maturity,
3. Includes nonmonetary international and regional organizations.
A63
A64
International Statistics • December 1989
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
1987
Area or country
1 Total
1985
1988
1989
1986
Mar.
June
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
385.4
385.1
395.4
384.6
387.7
381.4
371.9
351.9
355.1
350.0
352.1
146.0
9.2
12.1
10.5
9.6
3.7
2.7
4.4
63.0
6.8
23.9
156.6
8.3
13.7
11.6
9.0
4.6
2.4
5.8
71.0
5.3
24.9
162.7
9.1
13.3
12.7
8.7
4.4
3.0
5.8
73.7
5.3
26.9
158.1
8.3
12.5
11.2
7.5
7.3
2.4
5.7
72.0
4.7
26.3
155.2
8.2
13.7
10.5
6.6
4.8
2.6
5.4
72.1
4.7
26.5
160.0
10.1
13.8
12.6
7.3
4.1
2.1
5.6
69.1
5.5
29.8
157.7
9.4
11.8
11.8
7.4
3.3
2.2
5.1
72.1
4.9
29.9
151.7
9.2
11.0
10.6
6.2
3.3
1.9
5.6
70.6
5.4
27.9
149.9
9.6
10.4
8.8
5.4
3.0
2.0
5.2
68.0
5.2
32.4
154.7
9.0
10.7
9.9
6.6
2.8
2.0
5.7
66.7
5.5
35.9
150.1
8.6
11.2
10.1
5.1
2.9
2.4
5.2
66.4
4.6
33.6
13 Other developed countries
14 Austria
15 Denmark
16 Finland
17 Greece
18 Norway
19 Portugal
20 Spain
21 Turkey
22 Other Western Europe
23
South Africa
24 Australia
29.9
1.5
2.3
1.6
2.6
2.9
1.2
5.8
1.8
2.0
3.2
5.0
25.7
1.7
1.7
1.4
2.3
2.4
.8
5.8
1.8
1.4
3.0
3.5
25.7
1.9
1.7
1.4
2.1
2.2
.9
6.3
1.7
1.4
3.0
3.2
25.2
1.8
1.5
1.4
2.0
2.1
.8
6.1
1.7
1.5
3.0
3.1
25.9
1.9
1.6
1.4
1.9
2.0
.8
7.4
1.5
1.6
2.9
2.9
26.2
1.9
1.7
1.3
2.0
2.3
.5
8.0
1.6
1.6
2.9
2.4
26.3
1.6
1.4
1.1
2.3
2.0
.4
9.0
1.6
2.0
2.8
2.1
23.8
1.6
1.0
1.2
2.2
2.0
.4
7.2
1.5
1.7
2.8
2.2
22.8
1.6
1.1
1.3
2.1
2.0
.4
6.3
1.3
1.9
2.7
1.8
20.9
1.6
1.0
1.2
1.9
1.8
.5
6.2
1.3
1.3
2.4
1.8
20.8
1.4
1.0
1.0
2.2
1.5
.5
6.3
1.0
1.4
2.2
2.4
25 OPEC countries3
26 Ecuador
27 Venezuela
28 Indonesia
29 Middle East countries
30 African countries
21.3
2.1
8.9
3.0
5.3
2.0
19.3
2.2
8.6
2.5
4.3
1.7
20.0
2.1
8.5
2.4
5.4
1.6
18.8
2.1
8.4
2.2
4.4
1.7
19.0
2.1
8.3
2.0
5.0
1.7
17.1
1.9
8.1
1.9
3.6
1.7
17.4
1.9
8.0
1.9
3.8
1.7
16.7
1.8
8.0
1.9
3.4
1.7
17.8
1.8
7.9
1.9
4.5
1.7
16.5
1.7
7.9
1.8
3.3
1.7
16.3
1.7
8.0
1.8
3.2
1.6
104.2
99.1
100.7
100.4
97.7
97.6
94.4
91.4
87.1
85.3
85.6
8.8
25.4
6.9
2.6
23.9
1.8
3.4
9.5
25.2
7.1
2.1
23.8
1.4
3.1
9.5
26.2
7.3
2.0
24.1
1.4
3.0
9.5
25.1
7.2
1.9
25.3
1.3
2.9
9.3
25.1
7.0
1.9
24.8
1.2
2.8
9.4
24.7
6.9
2.0
23.7
1.1
2.7
9.5
23.9
6.6
1.9
22.5
1.1
2.8
9.4
23.7
6.4
2.1
21.1
.9
2.6
9.2
22.4
6.2
2.1
20.6
.8
2.5
8.9
22.5
5.5
2.0
19.0
.8
2.6
8.4
22.7
5.6
1.9
18.2
.7
2.8
2 G-10 countries and Switzerland
3 Belgium-Luxembourg
4 France
5 Germany
6 Italy
7 Netherlands
Sweden
8
Switzerland
9
10 United Kingdom
11 Canada
12 Japan
31 Non-OPEC developing countries
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.5
4.5
1.2
1.6
9.2
2.4
5.7
1.4
1.0
.4
4.9
1.2
1.5
6.6
2.1
5.4
.9
.7
.9
5.5
1.8
1.4
6.2
1.9
5.4
.9
.6
.6
6.6
1.7
1.3
5.6
1.7
5.4
.8
.7
.3
6.0
1.9
1.3
4.9
1.6
5.4
.7
.7
.3
8.2
1.9
1.0
4.9
1.5
5.1
.7
.7
.4
6.1
2.1
1.0
5.6
1.5
5.1
1.0
.7
.3
4.9
2.3
1.0
5.9
1.5
4.9
1.1
.8
.2
3.2
2.0
1.0
6.0
1.6
4.7
1.2
.8
.3
3.7
2.1
1.2
6.1
1.6
4.5
1.1
.9
.5
4.9
2.6
.9
6.2
1.7
4.3
1.0
.8
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 4
1.0
.9
.1
1.9
.7
.9
.1
1.6
.6
.9
.1
1.4
.6
.9
.1
1.3
.6
.8
.1
1.3
.5
.9
.0
1.3
.5
.9
.1
1.2
.6
.9
.1
1.2
.5
.8
.0
1.2
.4
.9
.0
1.1
.5
.9
.0
1.1
52 Eastern Europe
53
U.S.S.R
54 Yugoslavia
55 Other
4.1
.1
2.2
1.8
3.2
.1
1.7
1.4
3.0
.1
1.6
1.3
3.3
.3
1.7
1.3
3.3
.5
1.7
1.2
3.0
.4
1.6
1.0
2.9
.3
1.7
.9
3.1
.4
1.7
1.0
3.0
.4
1.7
1.0
3.6
.7
1.7
1.1
3.4
.7
1.7
1.1
56 Offshore banking centers
57
Bahamas
58 Bermuda
59 Cayman Islands and other British West Indies
60 Netherlands Antilles
61 Panama5
62 Lebanon
63 Hong Kong
64 Singapore
65 Others 6
62.9
21.2
.7
11.6
2.2
6.0
.1
11.4
9.8
.0
61.3
22.0
.7
12.4
1.8
4.0
.1
11.1
9.2
.0
63.1
23.9
.8
12.2
1.7
4.3
.1
11.4
8.6
.0
60.7
19.9
.6
14.0
1.3
3.9
.1
12.5
8.3
.0
64.3
25.5
.6
12.8
1.2
3.7
.1
12.3
8.1
.0
54.3
17.1
.6
13.3
1.2
3.7
.1
11.2
7.0
.0
51.7
15.7
.8
11.8
1.3
3.3
.1
11.3
7.4
.0
43.0
8.6
1.0
10.5
1.2
3.0
.1
11.7
6.8
.0
47.4
12.6
.9
12.3
1.2
2.7
.1
10.6
7.0
.0
45.8
10.8
.8
14.0
1.0
2.6
.1
10.2
6.2
.0
50.9
15.6
1.0
14.4
.9
2.3
.1
9.9
6.7
.0
66 Miscellaneous and unallocated7
16.9
19.8
20.1
18.1
22.3
23.2
21.5
22.3
26.7
22.6
24.5
1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.18 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches).
2. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
3. This group comprises the Organization of Petroleum Exporting Countries
shown individually, other members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait,
Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates), and Bahrain and
Oman (not formally members of OPEC).
4. Excludes Liberia.
5. Includes Canal Zone beginning December 1979.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.
Nonbank-Reported
Data
A65
3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States1
Millions of dollars, end of period
1989
1988
Type, and area or country
1985
1986
1987
Mar.
June
Sept.
Dec.
Mar.
June p
1 Total
27,825
25,587
28,302
29,792
30,107
32,196
33,417
36,986
36,639
2 Payable in dollars
3 Payable in foreign currencies
24,296
3,529
21,749
3,838
22,785
5,517
24,012
5,780
24,805
5,302
26,967
5,229
27,831
5,586
31,195
5,790
31,611
5,028
By type
4 Financial liabilities
5 Payable in dollars
Payable in foreign currencies
6
13,600
11,257
2,343
12,133
9,609
2,524
12,424
8,643
3,781
14,139
10,145
3,994
13,894
10,234
3,660
14,877
11,283
3,594
14,917
11,049
3,868
17,164
13,084
4,080
16,697
12,882
3,815
14,225
6,685
7,540
13,039
1,186
13,454
6,450
7,004
12,140
1,314
15,878
7,305
8,573
14,142
1,737
15,653
6,454
9,200
13,867
1,786
16,213
6,768
9,446
14,571
1,642
17,319
6,480
10,839
15,684
1,635
18,500
6,454
12,045
16,782
1,718
19,822
6,921
12,901
18,111
1,711
19,942
6,165
13,777
18,729
1,213
7,700
349
857
376
861
610
4,305
7,917
270
661
368
542
646
5,140
8,320
213
382
551
866
558
5,557
9,377
251
408
553
990
691
6,301
9,030
282
371
503
862
638
6,201
10,295
339
372
488
996
687
7,243
9,712
289
267
548
879
1,163
6,418
12,143
320
249
372
933
954
9,121
10,902
357
274
470
834
936
7,852
839
399
360
394
412
431
650
616
544
1,406
165
0
0
621
17
0
7 Commercial liabilities
Trade payables
8
9
Advance receipts and other liabilities ..
10 Payable in dollars
11 Payable in foreign currencies
12
13
14
15
16
17
18
19
By area or country
Financial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
3,184
1,123
4
29
1,843
15
3
1,944
614
4
32
1,146
22
0
1,189
318
0
25
778
13
0
1,452
289
0
0
1,099
15
2
1,448
250
0
0
1,154
26
0
1,057
238
0
0
812
2
0
1,239
184
0
0
645
1
0
677
189
0
0
471
15
0
27
28
29
Asia
Japan
Middle East oil-exporting countries .
1,815
1,198
n.a.
1,805
1,398
8
2,451
2,042
8
2,836
2,375
11
2,928
2,331
11
3,088
2,435
4
3,312
2,563
3
3,722
2,950
1
3,841
3,082
11
30
Africa
12
0
1
1
4
1
5
3
2
1
3
1
1
0
5
3
3
2
50
67
100
75
74
3
2
2
0
4,074
62
453
607
364
379
976
4,446
101
352
715
424
385
1,341
5,505
132
426
908
423
559
1,588
5,619
154
414
810
457
527
1,722
5,722
147
408
791
508
482
1,771
6,688
206
438
1,185
647
486
2,110
7,347
170
459
1,699
591
417
2,063
7,772
134
574
1,361
668
457
2,444
7,781
116
521
1,130
687
456
2,688
31
32
33
34
35
36
37
38
39
40
Oil-exporting countries 3
All other 4
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
1,449
1,405
1,301
1,392
1,167
1,109
1,218
1,152
1,119
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,088
12
77
58
44
430
212
924
32
156
61
49
217
216
864
18
168
46
19
189
162
980
19
325
59
14
164
122
1,035
61
272
54
28
233
140
997
19
222
58
30
177
204
1,118
49
286
95
34
179
177
1,262
35
426
102
31
197
179
1,660
34
388
538
42
181
184
48
49
50
Asia
Japan
Middle East oil-exporting countries 2,
6,046
1,799
2,829
5,080
2,042
1,679
6,565
2,578
1,964
5,883
2,508
1,062
6,279
2,659
1,320
6,632
2,763
1,298
6,910
3,091
1,386
7,435
3,048
1,526
6,945
2,706
1,430
51
52
Africa
Oil-exporting countries 3
587
238
619
197
574
135
575
139
626
115
477
106
578
202
706
272
768
253
53
All other 4
982
980
1,068
1,204
1,383
1,415
1,328
1,496
1,670
1. For a description of the changes in the International Statistics tables, see
J u l y 1979 BULLETIN, p . 5 5 0 .
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.
A66
International Statistics • December 1989
3.23 CLAIMS ON UNAFFILIATED FOREIGNERS
United States1
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1988
Type, and area or country
1985
1986
1989
1987
Mar.
June
Sept.
Dec.
Mar.
June p
1 Total
28,876
36,265
30,964
31,089
37,641
38,114
33,412
31,482
34,345
2 Payable in dollars
3 Payable in foreign currencies
26,574
2,302
33,867
2,399
28,502
2,462
29,026
2,063
35,613
2,028
35,695
2,419
31,164
2,249
29,254
2,227
32,188
2,157
18,891
15,526
14,911
615
3,364
2,330
1,035
26,273
19,916
19,331
585
6,357
5,005
1,352
20,363
14,903
13,775
1,128
5,460
4,646
814
20,326
12,697
12,121
576
7,629
6,509
1,120
26,274
19,492
18,775
718
6,781
5,886
895
27,011
19,079
18,145
934
7,932
6,990
942
21,482
15,763
14,744
1,019
5,719
4,995
724
19,613
14,733
13,886
847
4,881
4,007
874
22,334
17,358
16,497
861
4,977
4,159
818
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
9,986
8,696
1,290
9,992
8,783
1,209
10,600
9,535
1,065
10,763
9,650
1,113
11,367
10,332
1,036
11,103
10,109
993
11,930
10,845
1,085
11,868
10,604
1,264
12,010
10,811
1,200
14
15
9,333
652
9,530
462
10,081
519
10,397
366
10,952
415
10,560
542
11,425
505
11,361
507
11,532
478
6,929
10
184
223
161
74
6,007
10,744
41
138
116
151
185
9,855
9,531
7
332
102
350
65
8,467
9,805
15
308
92
333
54
8,789
11,512
16
181
168
335
105
10,430
10,537
49
278
123
356
84
9,321
9,942
10
224
138
344
215
8,659
9,119
11
230
180
383
203
7,801
9,237
155
191
233
290
70
7,961
By type
4 Financial claims
5 Deposits
6
Payable in dollars
7
Payable in foreign currencies
8 Other financial claims
9
Payable in dollars
10
Payable in foreign currencies
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
3,260
4,808
2,844
2,669
2,913
3,612
2,338
2,210
2,281
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
7,846
2,698
6
78
4,571
180
48
9,291
2,628
6
86
6,078
174
21
7,012
1,994
7
63
4,433
172
19
6,483
2,329
43
86
3,503
154
34
10,854
4,176
87
46
6,045
146
27
11,814
4,064
188
44
7,055
133
27
8,128
1,847
19
47
5,729
151
21
7,216
2,173
25
49
4,549
117
25
9,092
1,919
125
78
6,560
114
31
31
32
33
Asia
Japan
Middle East oil-exporting countries 2
731
475
n.a.
1,317
999
7
879
605
8
1,294
1,133
5
876
646
5
927
737
5
799
603
4
928
685
8
1,362
965
7
34
35
Africa
Oil-exporting countries
103
29
85
28
65
7
53
7
60
9
95
9
106
10
89
8
80
8
36
All other 4
21
28
33
24
58
26
169
51
284
3,533
175
426
346
284
284
898
3,725
133
431
444
164
217
999
4,180
178
650
562
133
185
1,073
4,170
193
552
637
150
173
1,059
4,694
158
684
773
172
262
1,095
4,295
171
542
613
145
183
1,179
5,010
176
671
611
208
322
1,306
4,901
201
752
643
156
246
1,282
4,881
199
766
638
191
218
1,330
37
38
39
40
41
42
43
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
1,023
934
936
1,166
937
977
974
1,100
1,167
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,753
13
93
206
6
510
157
1,857
28
193
234
39
412
237
1,930
19
170
226
26
368
283
1,930
14
171
209
24
374
274
2,067
13
174
232
25
411
304
2,104
12
161
234
22
463
266
2,229
36
229
298
21
457
226
2,100
34
234
277
23
476
211
2,083
14
236
314
29
428
229
52
53
54
Asia
Japan
Middle East oil-exporting countries 2
2,982
1,016
638
2,755
881
563
2,915
1,158
450
2,853
1,107
408
2,994
1,168
446
3,029
963
437
2,955
934
441
3,090
1,032
421
3,128
982
437
55
56
Africa
Oil-exporting countries
437
130
500
139
401
144
419
126
425
136
425
137
435
122
386
95
397
112
57
All other 4
257
222
238
225
250
273
328
290
354
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
Securities Holdings and Transactions
A67
3.24 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1989
Transactions, and area or country
1987
1989
1988
Jan.Aug.
Feb.
Mar.
Apr.
May
June
July
Aug."
U.S. corporate securities
STOCKS
1 Foreign purchases
2 Foreign sales
249,122
232,849
181,185
183,185
141,670
133,491
18,397
18,500
15,819
15,447
14,101
14,241
17,904
16,846
24,311
20,640
17,115
15,084
22,095
20,938
3 Net purchases, or sales ( - )
16,272
-2,000
8,180
-103
372
-141
1,058
3,671
2,030
1,158
4 Foreign countries
16,321
-1,825
8,405
-73
509
-134
1,060
3,689
2,047
1,141
1,932
905
-70
892
-1,123
631
1,048
1,318
-1,360
12,896
11,365
123
365
-3,350
-281
218
-535
-2,243
-954
1,087
1,238
-2,474
1,365
1,922
188
121
822
121
-523
-52
-2,349
3,197
137
2,854
2,934
1,426
1,505
86
145
-126
159
59
-64
-1,181
800
-361
583
266
-544
-487
3
106
73
70
59
5
91
-106
130
635
220
-536
-458
5
-19
181
168
17
-125
-141
287
-66
120
-345
-28
-16
10
-7
-293
-123
-215
-76
-293
494
-75
391
206
784
763
-1
50
418
-15
-155
131
-114
329
168
168
1,679
1,201
1,215
16
40
778
75
-79
12
-23
545
8
108
456
729
626
2
-34
-110
-251
-238
-63
-344
772
14
250
553
423
424
22
-11
-48
-176
-226
-30
-137
-6
-2
-18
-17
17
5
6
7
8
9
10
11
12
13
14
15
16
17
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Japan
Africa
Other countries
18 Nonmonetary international and
regional organizations
BONDS2
105,856
86,363
76,078
9,610
10,423
9,736
8,329
10,856
10,044
10,943
20 Foreign sales
19 Foreign purchases
78,312
58,395
56,179
4,736
7,025
5,270
8,776
9,043
7,526
9,046
21 Net purchases, or sales (—)
27,544
27,968
19,900
4,874
3,398
4,466
-447
1,813
2,518
1,897
22 Foreign countries
26,804
28,510
19,682
4,908
3,358
4,465
-570
1,690
2,550
1,920
21,989
194
33
269
1,587
19,770
1,296
2,857
-1,314
2,021
1,622
16
-61
17,243
143
1,344
1,514
505
13,088
711
1,931
-178
8,900
7,686
-8
-89
12,695
343
-169
608
225
11,204
664
2,169
-528
4,480
2,636
23
178
2,055
41
38
-21
131
1,751
129
651
160
1,893
1,567
2
18
2,794
-16
148
69
4
2,578
213
301
87
-50
-285
5
8
3,102
27
135
51
90
2,252
115
219
3
990
608
4
33
-55
93
-170
9
-114
665
59
136
-100
-615
-722
0
5
2,132
6
-162
395
-110
1,881
-188
271
-613
83
-67
1
4
1,976
121
-53
-22
81
1,937
79
300
36
53
-25
3
103
192
-35
-121
96
13
-9
76
62
27
1,574
1,167
5
-17
740
-542
218
-34
41
1
122
123
-32
-23
23
24
25
26
27
28
29
30
31
32
33
34
35
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Japan
Africa
Other countries
36 Nonmonetary international and
regional organizations
Foreign securities
37 Stocks, net purchases, or sales ( - )
1,081
-1,918
-8,313
-634
-153
-947
-1,322
-2,077
-748
-1,531
95,458
94,377
75,211
77,128
65,030
73,343
8,070
8,704
9,477
9,630
6,686
7,633
7,748
9,070
9,111
11,188
7,594
8,342
9,488
11,019
40 Bonds, net purchases, or sales ( - )
41
Foreign purchases
Foreign sales
42
-7,946
199,089
207,035
-7,221
217,932
225,153
-3,545
155,150
158,695
-432
18,705
19,137
-653
23,395
24,047
-196
15,525
15,721
-107
17,242
17,350
-1,524
21,016
22,540
-1,414
20,220
21,634
1,042
24,125
23,083
43 Net purchases, or sales (—), of stocks and bonds . . . .
-6,865
-9,138
-11,858
-1,066
-805
-1,143
-1,430
-3,601
-2,161
-489
44 Foreign countries
-6,757
-9,619
-12,653
-1,144
-998
-1,350
-1,633
-3,401
-2,314
-675
-12,101
-4,072
828
9,299
89
-800
-7,632
-3,735
1,384
985
-54
-567
-12,399
-3,505
679
3,055
16
-499
-748
-531
79
-35
-9
100
-1,402
-585
161
883
-16
-40
-1,757
194
197
70
10
-64
-1,520
-555
-90
700
13
-180
-3,876
-699
27
1,191
3
-47
-2,383
-692
-76
819
12
7
-613
-258
313
301
-4
-414
-108
480
795
78
192
207
203
-200
152
186
38
39
45
46
47
48
49
50
Foreign purchases
Foreign sales
Europe
Canada
Latin America and Caribbean
Asia
Africa
Other countries
51 Nonmonetary international and
regional organizations
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
2. Includes state and local government securities, and securities of U.S.
government agencies and corporations. Also includes issues of new debt securi-
ties sold abroad by U.S. corporations organized to finance direct investments
abroad.
A68
International Statistics • December 1989
3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES
Foreign Transactions
Millions of dollars
1989
Country or area
1987
1989
1988
Jan.Aug.
Feb.
Mar.
Apr.
May
June
July
Aug."
Transactions, net purchases or sales ( - ) during period 1
1 Estimated total2
25,587
48,868
42,770
8,783
8,639
29
7,043
-5,202
-1,317
21,968
2 Foreign countries2
30,889
48,206
42,377
9,907
8,296
291
5,520
-5,319
-773
22,416
3 Europe 2
4 Belgium-Luxembourg
5 Germany
6 Netherlands
7 Sweden
8 Switzerland2
9
United Kingdom
10 Other Western Europe
11 Eastern Europe
12 Canada
23,716
653
13,330
-913
210
1,917
3,975
4,563
-19
4,526
14,353
923
-5,268
-356
-323
-1,074
9,674
10,786
-10
3,761
28,985
622
3,873
94
1,001
2,045
15,721
5,651
-21
304
3,775
127
-31
135
297
438
1,533
1,277
0
17
2,142
-23
-181
242
-508
1,767
1,207
-363
0
-55
-1,814
-87
-693
-643
398
440
-1,298
74
-5
114
4,498
88
-179
-638
-69
-83
3,873
1,511
-5
157
-1,305
13
-1,106
-674
647
378
-133
-423
-6
-478
4,357
82
2,622
100
110
-361
1,024
786
-5
-533
15,191
413
2,503
1,304
241
-748
9,863
1,614
0
1,028
13 Latin America and Caribbean
14 Venezuela
15 Other Latin America and Caribbean
16 Netherlands Antilles
17
18 Japan
19 Africa
20 All other
-2,192
150
-1,142
-1,200
4,488
868
-56
407
713
-109
1,130
-308
27,606
21,752
-13
1,786
1,424
83
215
1,126
12,311
-1,387
54
-701
525
1
247
276
5,955
2,503
15
-379
113
-53
132
34
5,659
1,855
-2
439
-133
-18
-231
117
1,743
2,624
32
350
-179
0
-78
-101
1,734
1,646
-3
-687
643
1
-14
656
-5,577
-7,780
66
1,332
839
71
104
665
-4,954
-5,360
-5
-477
-280
120
217
-617
7,127
3,009
-48
-603
21 Nonmonetary international and regional organizations
22
International
23 Latin America regional
-5,302
-4,387
3
661
1,106
-31
393
-158
300
-1,124
-1,072
-10
344
424
-8
-262
-252
-21
1,523
1,340
70
117
-253
191
-544
-546
3
-448
-576
75
Memo
24 Foreign countries2
25 Official institutions
26 Other foreign
30,889
31,064
-176
48,206
26,624
21,582
42,377
24,205
18,171
9,907
4,299
5,608
8,296
6,549
1,747
291
-842
1,133
5,520
-1,068
6,588
-5,319
449
-5,768
-773
2,819
-3,592
22,416
9,980
12,436
-3,142
16
1,963
1
10,296
0
3,560
0
2,607
0
-471
0
-299
0
670
0
422
0
3,677
0
27
28
Oil-exporting countries
Middle East 3
Africa 4
1. Estimated official and private transactions in marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based on
monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
2. Includes U.S. Treasury notes publicly issued to private foreign residents
denominated in foreign currencies.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
Interest and Exchange Rates
A69
3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per year
Rate on Oct. 31, 1989
Rate on Oct. 31, 1989
Austria..
Belgium .
Brazil . . .
Canada..
Denmark
Rate on Oct. 31, 1989
Country
Country
Percent
Month
effective
6.0
10.25
49.0
12.42
10.5
June 1989
Oct. 1989
Mar. 1981
Oct. 1989
Oct. 1989
Country
Month
effective
France
Germany, Fed. Rep. of.
Italy
Japan
Netherlands
1. As of the end of February 1981, the rate is that at which the Bank of France
discounts Treasury bills for 7 to 10 days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either discounts
10.25
6.0
13.5
3.75
7.0
Oct. 1989
Oct. 1989
Mar. 1989
Oct. 1989
Oct. 1989
Norway
Switzerland
.
United Kingdom'
Venezuela
Percent
Month
effective
8.0
6.0
June 1983
Oct. 1989
Oct. 1985
or makes advances against eligible commercial paper and/or government commercial banks or brokers. For countries with more than one rate applicable to
such discounts or advances, the rate shown is the one at which it is understood the
central bank transacts the largest proportion of its credit operations.
3.27 FOREIGN SHORT-TERM INTEREST RATES
Percent per year, averages of daily figures
1989
Country, or type
1
2
3
4
5
6
7
8
9
10
1986
1987
1988
Apr.
May
' June
July
Aug.
Sept.
Oct.
Eurodollars
United Kingdom
Canada
Germany
Switzerland
6.70
10.87
9.18
4.58
4.19
7.07
9.65
8.38
3.97
3.67
7.85
10.28
9.63
4.28
2.94
10.01
13.09
12.58
6.42
6.05
9.66
13.08
12.44
6.96
7.26
9.28
14.17
12.35
6.92
7.09
8.85
13.91
12.24
7.00
6.92
8.71
13.86
12.30
6.99
7.01
8.85
13.99
12.32
7.37
7.42
8.67
15.03
12.29
8.08
7.63
Netherlands
France
Italy
Belgium
Japan
5.56
7.68
12.60
8.04
4.96
5.24
8.14
11.15
7.01
3.87
4.72
7.80
11.04
6.69
3.96
6.70
8.61
12.21
8.17
4.20
7.30
8.81
12.27
8.45
4.25
7.11
8.89
12.35
8.51
4.46
7.07
9.05
12.46
8.46
4.71
7.15
8.95
12.52
8.44
4.80
7.53
9.20
12.40
8.66
4.88
8.08
9.89
12.63
9.51
5.25
NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate.
A70 International Statistics • December 1989
3.28 FOREIGN EXCHANGE RATES1
Currency units per dollar
1989
Country/currency
1
2
3
4
5
6
Australia/dollar2
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone
7
8
9
10
11
12
13
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee ,
Ireland/punt
14
15
16
17
18
19
20
Italy/lira
Japan/yen
Malaysia/ringgit
Netherlands/guilder
New Zealand/dollar2
Norway /krone
Portugal/escudo
21
22
23
24
25
26
27
28
29
30
Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound
1986
1987
1988
May
June
July
Aug.
Sept.
Oct.
67.095
15.260
44.664
1.3896
3.4616
8.0955
70.137
12.649
37.358
1.3259
3.7314
6.8478
78.409
12.357
36.785
1.2306
3.7314
6.7412
77.360
13.691
40.723
1.1925
3.7314
7.5820
75.606
13.913
41.414
1.1986
3.7314
7.7087
75.658
13.308
39.560
1.1891
3.7314
7.3527
76.345
13.570
40.310
1.1758
3.7314
7.4938
77.271
13.733
40.841
1.1828
3.7314
7.5872
77.421
13.140
39.197
1.1749
3.7314
7.2781
5.0722
6.9257
2.1705
139.93
7.8038
12.597
134.14
4.4037
6.0122
1.7981
135.47
7.7986
12.943
148.79
4.1933
5.9595
1.7570
142.00
7.8072
13.900
152.49
4.3409
6.5815
1.9461
165.41
7.7800
16.102
137.39
4.4302
6.7135
1.9789
170.42
7.7934
16.420
134.92
4.2699
6.4105
1.8901
163.84
7.8040
16.416
141.26
4.3504
6.5085
1.9268
166.26
7.8078
16.609
138.43
4.4219
6.5855
1.9502
169.03
7.8078
16.745
136.71
4.2817
6.3339
1.8662
165.88
7.8081
16.819
142.50
1,491.16
168.35
2.5831
2.4485
52.457
7.3985
149.80
1,297.03
144.60
2.5186
2.0264
59.328
6.7409
141.20
1,302.39
128.17
2.6190
1.9778
65.560
6.5243
144.27
1,415.83
137.862.6967
2.1938
60.718
7.0337
160.71
1,434.40
143.98
2.7086
2.2292
57.376
7.1852
164.92
1,367.39
140.42
2.6809
2.1318
57.537
6.9478
158.31
1,384.24
141.49
2.6825
2.1726
59.217
7.0480
161.15
1,404.18
145.07
2.6980
2.1992
59.144
7.1264
163.36
1,369.24
142.21
2.6945
2.1072
55.937
6.9502
159.08
2.1783
2.2919'
884.63
140.04
27.934
7.1273
1.7979
37.839
26.315
146.77
2.1059
2.0385
825.94
123.54
29.472
6.3469
1.4918
31.753
25.775
163.98
2.0133
2.2773'
734.52
116.53
31.820
6.1370
1.4643
28.636
25.312
178.13
1.9575
2.6710
669.25
121.39
34.145
6.5756
1.7290
25.789
25.757
163.07
1.9572
2.7828
669.43
126.55
33.475
6.6872
1.7089
26.023
25.909
155.30
1.9589
2.6909
669.84
118.73
34.764
6.4653
1.6281
25.816
25.771
162.68
1.9604
2.7247
671.13
120.64
36.276
6.5481
1.6605
25.685
25.912
159.47
1.9769
2.7882
672.73
122.14
39.572
6.6103
1.6865
25.737
26.012
157.15
1.9622
2.6403
673.86
118.77
40.018
6.4580
1.6302
25.739
25.868
158.74
100.81
103.09
100.44
101.87
MEMO
31 United States/dollar3
112.22
96.94
92.72
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
99.12
98.92
currencies of 10 industrial countries. The weight for each of the 10 countries is the
1972-76 average world trade of that country divided by the average world trade of
all 10 countries combined. Series revised as of August 1978 (see FEDERAL
RESERVE BULLETIN, v o l . 6 4 , A u g u s t 1 9 7 8 , p . 7 0 0 ) .
A71
Guide to Tabular Presentation, Statistical
Releases, and Special Tables
GUIDE TO TABULAR
PRESENTATION
Symbols and Abbreviations
c
e
p
r
*
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when
about half of the figures in that column are changed.)
Amounts insignificant in terms of the last decimal place
shown in the table (for example, less than 500,000
when the smallest unit given is millions)
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
. ..
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
General Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed
issues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
STATISTICAL
RELEASES—List
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.
Published Semiannually, with Latest Bulletin
Anticipated schedule of release dates for periodic releases
SPECIAL
TABLES—Published
Reference
Issue
December 1989
Page
A84
Issue
Page
Irregularly, with Latest Bulletin Reference
Title and Date
Assets and liabilities of commercial banks
June 30, 1988
September 30, 1988
December 31, 1988
March 31, 1989
June
August
August
December
1989
1989
1989
1989
A78
All
A78
A72
Terms of lending at commercial banks
August 1988
November 1988
February 1989
May 1989
January
April
June
November
1989
1989
1989
1989
All
A72
A84
A73
Assets and liabilities of U.S. branches and agencies of foreign banks
September 30, 1988
December 31, 1988
March 31, 1989
June 30, 1989
May
June
August
November
1989
1989
1989
1989
All
A90
A84
A78
Pro forma balance sheet and income statements for priced service operations
June 30, 1987
September 30, 1987
March 31, 1988
March 31, 1989
November
February
August
September
1987
1988
1988
1989
A74
A80
A70
All
http://fraser.stlouisfed.org/
Special tables begin
Federal Reserve Bank of St. Louis
on page A72.
All
Special Tables • December 1989
4.20 DOMESTIC AND FOREIGN OFFICES, Insured Commercial Bank Assets and Liabilities1'2
Consolidated Report of Condition, March 31, 1989
Millions of dollars
Banks with foreign offices 3,4
Item
1 Total assets6
2 Cash and balances due from depository institutions
3 Cash items in process of collection, unposted debits, and currency and coin
4
Cash items in process of collection and unposted debits
5
Currency and coin
6 Balances due from depository institutions in the United States
7 Balances due from banks in foreign countries and foreign central banks
8 Balances due from Federal Reserve Banks
Banks with domestic
offices only
Total
Total
Foreign
Domestic
Over 100
Under 100
3,129,031
1,804,082
429,440
1,430,250
945,283
381,505
330,576
238,635
82,279
n.a.
n.a.
34,825
99,122
22,409
120,387
1,870
n.a.
n.a.
22,698
95,514
305
118,248
80,409
68,980
11,429
12,128
3,608
22,104
64,522
29,300
21,298
8,002
19,732
4,329
11,161
27,554
n a.
k
n. a.
MEMO
9
Noninterest-bearing balances due from commercial banks in the United States
(included in balances due from depository institutions in the United States)....
10 Total securities, loans and lease financing receivables, net
11 Total securities, book value
12 U.S. Treasury securities and U.S. government agency and corporation
obligations
U.S. Treasury securities
13
14
U.S. government agency and corporation obligations
15
All holdings of U.S. government-issued or guaranteed certificates of
participation in pools of residential mortgages
16
All other
17 Securities issued by states and political subdivisions in the United States
18
Taxable
19
Tax-exempt
20 Other securities
">1
22
All holdings of private certificates of participation in pools of
residential mortgages
23 Federal funds sold and securities purchased under agreements to resell
24 Federal funds sold
25 Securities purchased under agreements to resell
26 Total loans and lease financing receivables, gross
27 LESS: Unearned income on loans
28 Total loans and leases (net of unearned income)
29 LESS: Allowance for loan and lease losses
30 LESS: Allocated transfer risk reserves
31 EQUALS: Total loans and leases, net
Total loans, gross, by category
32 Loans secured by real estate
33 Construction and land development
34 Farmland
1-4 family residential properties
35
36
Revolving, open-end loans, extended under lines of credit
All other loans
37
38 Multifamily (5 or more) residential properties
39 Nonfarm nonresidential properties
40 Loans to depository institutions
41 To commercial banks in the United States
42 To other depository institutions in the United States
43 To banks in foreign countries
12,699
9,234
n.a.
840,498
337,690
29,341
194,6%
199,550
116,724
2,648
1,472
1,176
120,039
57,518
62,521
133,096
69,904
63,192
88,136
n.a.
n.a.
49,823
13,874
44,212
776
43,436
53,162
28,702
1,111
65
511
49
462
25,654
2,309
48,712
13,809
43,701
727
42,974
27,508
26,393
26,314
36,878
39,712
730
38,982
22,891
22,447
15,235
n a.
19,030
989
18,041
8,105
n.a.
n.a.
2,566,780
1,390,271
n.a.
539,770
224,037
343,920
n a.
n a.
122,687
58,990
63,697
91,154
n a.
102,955
2,496
100,323
84,157
n.a.
7,710
3,933
1,676
0
1,676
1,732
525
137,019
110,403
26,618
1,952,214
15,199
1,935,718
45,553
175
1,88 ?,990
76,290
53,746
22,544
1,129,623
7,005
1,122,618
32,499
174
1,089,945
1,710
n.a.
n.a.
217,996
2,220
215,776
n.a.
n.a.
n.a.
74,579
n.a.
n.a.
911,627
4,785
906,842
n.a.
n.a.
n.a.
38,054
34,295
3,759
618,893
6,224
612,669
9,774
0
602,894
22,676
22,366
310
203,698
2,115
201,583
3,293
1
198,289
691,883
A
336,680
A
23,019
i
1
1
n.a.
I
1
24,208
1,037
357
22,814
313,662
85,232
2,012
129,837
22,417
107,421
10,103
86,478
26,225
20,583
1,914
3,728
258,249
37,414
4,639
125,336
17,145
108,191
6,912
83,948
5,221
4,548
565
108
97,365
7,207
9,176
53,526
2,366
51,160
1,895
25,561
578
n.a.
n a.
n.a.
n a.
|1
1
56,232
n a.
n a.
n a.
n.a.
1
1
T
50,433
21,620
2,272
26,542
28,577
601,548
n a.
n a.
4,894
n a.
n.a.
5,209
416,913
336,078
80,835
1,015
297
717
227
101,779
23,353
78,425
574
62
512
4,983
315,134
312,724
2,410
441
235
206
6,754
142,562
142,151
411
1,978
n.a.
n.a.
16,652
42,073
n a.
n.a.
1,900
n a.
n.a.
367,694
111,321
255,633
154,222
44,311
109,911
12,115
n.a.
n.a.
142,106
n.a.
n.a.
172,795
64,890
107,905
40,678
2,169
38,509
54 Obligations (other than securities) of states and political subdivisions in the U.S.
(includes nonrated industrial development obligations)
55 Taxable
56 Tax-exempt
57 All other loans
58 Loans to foreign governments and official institutions
59 Other loans
60
Loans for purchasing and carrying securities
All other loans
61
44,128
1,355
42,733
122,682
n a.
n a.
n a.
n a.
26,739
715
26,024
110,305
34,872
75,433
n.a.
n.a.
325
21
304
51,978
33,262
18,716
n.a.
n.a.
26,414
694
25,720
58,327
1,610
56,716
15,349
41,367
15,525
574
14,951
10,337
248
10,090
1,642
8,448
1,864
77
1,788
2,040
n.a.
n.a.
n a.
n.a.
62
63
64
65
66
67
68
69
70
34,126
42,096
45,717
11,712
2,816
31,052
n.a.
5,141
93,136
28,106
41,166
24,103
5,378
2,114
30,164
n.a.
3,077
69,173
3,772
16,497
24,335
24,670
n.a.
n.a.
n.a.
n.a.
40,728
n.a.
n.a.
5,473
772
14,983
3,757
663
854
n.a.
1,849
17,383
547
158
6,644
2,575
39
20
n.a.
217
6,607
44
45
46
47
48
49
50
51
Loans to finance agricultural production and other loans to farmers
Commercial and industrial loans
To U.S. addressees (domicile)
To non-U.S. addressees (domicile)
Acceptances of other banks
U.S. banks
Foreign banks
Loans to individuals for household, family, and other personal expenditures (includes
purchased paper)
52 Credit cards and related plans
53 Other (includes single payment and installment)
Lease financing receivables
Assets held in trading accounts
Premises and fixed assets (including capitalized leases)
Other real estate owned
Investments in unconsolidated subsidiaries and associated companies
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
Intangible assets
Other assets
k
|
1
n.a.
I
I
t
Commercial Banks
A73
4.20—Continued
Banks with domestic
offices only
Banks with foreign offices 3
Total
Foreign
3,129,031
1,804,082
72 Total liabilities
73
Limited-life preferred stock
2,928,262
1,705,827
84
0
74 Total deposits
75
Individuals, partnerships, and corporations
76
U.S. government
77
States and political subdivisions in the United States
78
Commercial banks in the United States
79
Other depository institutions in the United States
80
Banks in foreign countries
81
Foreign governments and official institutions
82
Certified and official checks
83
Allother8
2,412,338
1,306,521
A
71 Total liabilities, limited-life preferred stock, and equity capital
7
Over 100
945,283
1,331,829
876,653
981,669
888,241
2,539
41,083
25,786
5,105
7,644
1,513
9,758
766,638
705,111
1,400
42,616
8,965
2,273
391
314
5,567
84 Total transaction accounts
85
Individuals, partnerships, and corporations
86
U.S. government
87
States and political subdivisions in the United States
88
Commercial banks in the United States
89
Other depository institutions in the United States
90
Banks in foreign countries
91
Foreign governments and official institutions
92
Certified and official checks
93
All other
309,874
260,410
1,607
8,252
18,158
3,647
7,063
977
9,758
210,743
186,477
1,104
9,937
6,123
1,312
94 Demand deposits (included in total transaction accounts)
95
Individuals, partnerships, and corporations
96
U.S. government
97
States and political subdivisions in the United States
98
Commercial banks in the United States
99
Other depository institutions in the United States
100
Banks in foreign countries
101
Foreign governments and official institutions
102
Certified and official checks
103
All other
104 Total nontransaction accounts
105
Individuals, partnerships, and corporations
106
U.S. government
107
States and political subdivisions in the United States
108
Commercial banks in the United States
109
U.S. branches and agencies of foreign banks
110
Other commercial banks in the United States
111
Other depository institutions in the United States
112
Banks in foreign countries
113
Foreign branches of other U.S. banks
114
Other banks in foreign countries
115
Foreign governments and official institutions
116
Allother
235,474
188,138
1,585
6,149
18,158
3,647
7,063
975
9,758
131,537
112,397
1,074
4,871
6,103
1,302
188
36
5,567
117
118
119
120
121
122
123
124
125
126
Federal funds purchased and securities sold under agreements to repurchase..
Federal funds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and I B F s . . .
All other liabilities
Total equity capital
127
128
129
130
131
132
Holdings of commercial paper included in total loans, gross
Total individual retirement accounts (IRA) and Keogh plan accounts
Total,brokered deposits
Total brokered retail deposits
Issued in denominations of $100,000 or less
Issued in denominations greater than $100,000 and participated out by the
broker in shares of $100,000 or less
Savings deposits
Money market deposit accounts (MMDAs)
Other savings deposits (excluding MMDAs)
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All NOW accounts (including Super NOW)
Total time and savings deposits
MEMO
133
134
135
136
137
138
139
Quarterly averages
140 Total loans
141 Obligations (other than securities) of states and political subdivisions
in the United States
142 Transaction accounts in domestic offices (NOW accounts, ATS accounts, and
telephone and preauthorized transfer accounts)
Nontransaction accounts in domestic offices
143
Money market deposit accounts (MMDAs)
144
Other savings deposits
145
Time certificates of deposit of $100,000 or more
146
All other time deposits
147 Number of banks
Footnotes appear at the end of table 4.22
1
429,606
324,852
191^351
I
n.a.
18,166
26,082
10,370
n.a.
83
n.a.
24,569
612
108,319
67 i, 796
627,830
931
32,831
7,628
663
6,965
1,458
580
568
537
' 555^894
518,634
296
32,679
2,842
129
2,713
961
204
200
4
278
194,838
n.a.
n.a.
7,863
55,195
24,869
n.a.
14,880
n.a.
n.a.
60,400
30,736
29,664
2,151
30,711
854
2,016
n.a.
13,883
68,547
660
42,704
43,096
11,378
3,049
1,254
40,551
15,293
10,206
5,438
12
259,115
157,379
101,531
n.a.
125,355
31,180
17,066
n.a.
74,554
200,685
195,976
125,597
70,379
n.a.
93,643
30,292
14,892
n.a.
56,641
98,255
1,138
n.a.
n.a.
n.a.
38,448
5,424
n.a.
n.a.
n.a.
n.a.
188
36
5,567
8,329
4,768
173,178
79,496
192,508
196,402
30,212
72,423
746,195
122,055
75,701
238
115,473
4,380
76,683
635,101
870,699
604,950
26,818
15,400
75,020
78,633
172,470
79,026
186,760
211,392
124,377
75,592
113,442
236,651
2,522
Under 100
All
Special Tables • December 1989
4.21
DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or more or with foreign offices 1 2 , 6
Consolidated Report of Condition, March 31, 1989
Millions of dollars
Members
Item
Nonmembers
Total
Total
National
State
2,375,533
1,890,290
1,507,834
382,455
485,243
182,770
90,277
19,431
31,860
7,937
33,265
151,137
81,412
15,930
20,726
6,061
27,008
121,470
65,800
13,407
16,411
4,667
21,183
29,667
15,611
2,523
4,315
1,394
5,825
31,633
8,866
3,501
11,134
1,875
6,257
2,026,390
1,594,666
1,285,710
308,957
431,723
394,246
127,423
125,713
292,881
91,896
96,069
227,001
72,070
76,620
65,879
19,825
19,449
101,365
35,527
29,644
75,026
50,687
83,413
1,457
81,956
48,840
3,408
62,931
33,138
65,846
1,125
64,721
34,608
2,579
50,211
26,409
48,143
933
47,210
27,046
1,574
12,720
6,729
17,703
192
17,511
7,562
1,005
12,094
17,549
17,567
332
17,235
14,232
829
112,633
34,295
3,759
1,530,520
11,009
1,519,511
96,598
22,117
2,721
1,213,584
8,396
1,205,188
69,471
19,805
2,241
996,036
6,799
989,237
27,127
2,312
480
217,548
1,597
215,951
16,035
12,178
1,038
316,936
2,613
314,323
571,910
122,645
6,651
255,174
39,562
215,612
17,015
170,426
25,132
2,479
3,836
11,737
431,726
98,380
4,463
187,020
30,769
156,251
13,347
128,516
21,853
2,256
3,675
9,199
371,299
82,938
3,920
161,139
26,375
134,764
11,602
111,700
16,590
2,032
1,930
8,232
60,428
15,443
543
25,881
4,394
21,487
1,745
16,816
5,262
224
1,745
967
140,184
24,265
2,188
68,154
8,793
59,361
3,668
41,909
3,279
223
161
2,538
457,696
454,876
2,821
374,161
371,714
2,447
296,717
294,815
1,902
77,444
76,899
545
83,535
83,162
374
2,420
875
309
1,378
549
253
1,136
445
189
242
104
64
1,042
326
56
43 Loans to individuals for household, family, and other personal expenditures
(includes purchased paper)
44 Loans to foreign governments and official institutions
45 Obligations (other than securities) of states and political subdivisions in the United States
46 Taxable
47 Tax-exempt
48 Other loans
49 Loans for purchasing and carrying securities
50 All other loans
314,901
1,858
41,939
1,268
40,671
66,806
16,991
49,815
246,048
1,788
35,235
1,012
34,223
60,469
15,391
45,078
207,538
1,321
26,089
831
25,258
41,858
9,274
32,583
38,509
467
9,146
180
8,966
18,612
6,117
12,495
68,853
70
6,704
257
6,447
6,337
1,600
4,737
51 Lease financing receivables
52 Customers' liability on acceptances outstanding
53 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
54
29,808
25,129
40,728
141,244
25,797
23,934
36,593
120,552
21,295
17,227
23,563
83,428
4,502
6,707
13,029
37,124
4,011
1,194
4,135
20,693
1 Total assets6
2 Cash and balances due from depository institutions
Cash items in process of collection and unposted debits
4 Currency and coin
5 Balances due from depository institutions in the United States
6 Balances due from banks in foreign countries and foreign central banks
7 Balances due from Federal Reserve Banks
8 Total securities, loans and lease financing receivables, (net of unearned income)
9 Total securities, book value
10 U.S. Treasury securities
11 U.S. government agency and corporation obligations
12
All holdings of U.S. government-issued or guaranteed certificates of
participation in pools of residential mortgages
n
All other
14 Securities issued by states and political subdivisions in the United States
Taxable
n
16
Tax-exempt
17 Other domestic securities
18
All holdings of private certificates of participation in pools of residential mortgages
19 Federal funds sold and securities purchased under agreements to resell10
20 Federal funds sold
21
Securities purchased under agreements to resell
22 Total loans and lease financing receivables, gross
23 LESS: Unearned income on loans
24 Total loans and leases (net of unearned income)
25
26
71
28
29
30
31
32
33
34
35
36
Total loans, gross, by category
Loans secured by real estate
Construction and land development
Farmland
1 4 family residential properties
Revolving, open-end and extended under lines of credit
All other loans
Multifamily (5 or more) residential properties
Nonfarm nonresidential properties
Loans to commercial banks in the United States
Loans to other depository institutions in the United States
Loans to banks in foreign countries
Loans to finance agricultural production and other loans to farmers
37 Commercial and industrial loans
38 To U.S. addressees (domicile)
39 To non-U.S. addressees (domicile)
40
41
42
Of U.S. banks
Of foreign banks
Commercial Banks A73
4.21—Continued
Members
Item
Total
National
State
55 Total liabilities and equity capital
2,375,533
1,890,290
1,507,834
382,455
56 Total liabilities4
2,208,482
1,760,159
1,406,741
353,418
57 Total deposits
58
Individuals, partnerships, and corporations
59
U.S. government
60
States and political subdivisions in the United States
61
Commercial banks in the United States
62
Other depository institutions in the United States
63
Banks in foreign countries
64
Foreign governments and official institutions
65
Certified and official checks
1,748,307
1,593,351
3,939
83,699
34,752
7,378
8,035
1,827
15,325
1,363,429
1,237,930
3,324
64,175
30,794
5,925
7,263
1,644
12,376
1,111,067
1,012,577
2,832
54,031
22,685
5,035
4,307
1,005
8,595
252,362
225,354
492
10,144
8,109
890
2,956
638
3,780
66 Total transaction accounts
67
Individuals, partnerships, and corporations
68
U.S. government
69
States and political subdivisions in the United States
70
Commercial banks in the United States
71
Other depository institutions in the United States
72
Banks in foreign countries
73
Foreign governments and official institutions
74
Certified and official checks
520,617
446,887
2,712
18,189
24,282
4,959
7,251
1,012
15,325
419,551
356,124
2,204
14,518
22,416
4,056
6,921
937
12,376
335,083
288,374
1,759
11,933
16,663
3,251
4,088
419
8,595
84,468
67,750
444
2,585
5,753
805
2,833
517
3,780
75 Demand deposits (included in total transaction accounts)
76
Individuals, partnerships, and corporations
77
U.S. government
78
States and political subdivisions in the United States
79
Commercial banks in the United States
80
Other depository institutions in the United States
81
Banks in foreign countries
82
Foreign governments and official institutions
83
Certified and official checks
367,011
300,535
2,660
11,020
24,261
4,949
7,250
301,413
243,463
2,163
9,109
22,395
4,050
6,921
936
12,376
235,430
193,214
1,719
7,507
16,643
3,244
4,088
419
8,595
65,982
50,249
443
1,602
5,753
805
2,833
517
3,780
943,878
881,806
49,656
8,378
491
7,887
1,869
342
53
289
707
775,984
724,203
1,073
42,098
6,022
303
5,719
1,784
219
51
168
586
167,894
157,604
47
7,559
2,356
81,280
219,846
22,787
15,401
9,072
71,335
24,528
1,225
12,637
70,723
164,140
19,320
12,415
6,994
56,667
17,763
1,105
10,609
49,004
55,706
3,467
2,986
2,078
14,668
6,766
119
2,029
21,719
167,050
130,130
101,093
29,037
1,915
83,255
58,388
21,585
752
64,803
45,361
14,127
3,880
614
53,741
37,734
3,510
138
11,063
7,627
3,017
369
13,097
10,247
7,600
2,647
295,232
155,196
430,795
311,875
34,591
149,107
1,381,296
233,153
119,282
322,151
239,348
29,944
115,139
1,062,017
191,544
91,394
273,657
199,479
19,910
97,164
875,637
41,609
27,889
48,494
39,869
10,034
17,976
186,380
1,475,649
42,219
1,166,535
35,596
956,398
26,279
210,137
9,317
153,653
118,611
98,658
19,953
296,847
154,618
300,202
448,043
233,287
118,654
227,203
337,727
191,140
91,294
188,369
281,356
42,147
27,360
38,835
56,371
2,766
1,566
1,321
245
84 Total nontransaction accounts
85
Individuals, partnerships, and corporations
86
U.S. government
87
States and political subdivisions in the United States
88
Commercial banks in the United States
89
U.S. branches and agencies of foreign banks
90
Other commercial banks in the United States
91
Other depository institutions in the United States
92
Banks in foreign countries
93
Foreign branches of other U.S. banks
94
Other banks in foreign countries
95
Foreign governments and official institutions
96
97
98
99
100
101
102
103
104
Federal funds purchased and securities sold under agreements to repurchase 1 2
Federal funds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining liabilities
105 Total equity capital9
MEMO
106
107
108
109
110
111
112
113
114
115
116
117
118
Holdings of commercial paper included in total loans, gross
Total individual retirement accounts (IRA) and Keogh plan accounts
Total brokered deposits
Total brokered retail deposits
Issued in denominations of $100,000 or less
Issued in denominations greater than $100,000 and participated out by the broker in shares
of $100,000 or less
Savings deposits
Money market deposit accounts (MMDAs)
Other savings accounts
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All NOW accounts (including Super NOW accounts)
Total time and savings deposits
Quarterly averages
119 Total loans
120 Obligations (other than securities) of states and political subdivisions in the United States . . .
121 Transaction accounts (NOW accounts, ATS accounts, and telephone preauthorized
transfer accounts)
122
123
124
125
Nontransaction accounts
Money market deposit accounts (MMDAs)
Other savings deposits
Time certificates of deposits of $100,000 or more
All other time deposits
126 Number of banks
Footnotes appear at the end of table 4.22
1,011
15,325
1,227,690
1,146,464
1,228
65,510
10,470
792
9,678
2,419
784
212
572
815
255,238
30,736
29,664
10,014
85.906
25,723
2,016
14.907
1,120
11,110
188
2,169
84
123
2
121
121
All
Special Tables • December 1989
4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and L i a b i l i t i e s 6
Consolidated Report of Condition, March 31, 1989
Millions of dollars
Members
Item
Nonmembers
Total
Total
National
State
2,757,037
2,044,592
1,631,887
412,706
712,445
210,324
22,805
29,643
157,875
162,686
17,309
16,874
128,503
130,933
14,522
13,895
102,516
31,753
2,787
2,979
25,986
47,638
5,496
12,769
29,373
2,367,373
1,732,093
1,395,946
336,148
635,279
510,970
341,272
102,444
2,447
99,997
58,503
3,933
135,309
56,661
4,069
1,734,218
13,124
1,721,093
338,628
222,514
73,010
1,457
71,553
39,180
2,826
106,729
32,091
2,878
1,296,035
9,299
1,286,737
264,425
176,939
53,961
1,199
52,763
30,358
1,734
77,598
27,835
2,339
1,061,405
7,482
1,053,923
74,203
45,575
19,048
258
18,790
8,821
1,092
29,131
4,257
539
234,630
1,816
232,814
172,343
118,758
29,434
990
28,444
19,323
1,107
28,580
24,570
1,191
438,183
3,826
434,357
669,276
129,852
15,827
308,700
41,928
266,772
18,910
195,986
470,602
101,349
7,517
208,620
31,818
176,802
14,041
139,074
402,070
85,262
6,383
177,996
27,181
150,816
12,163
120,265
68,532
16,087
1,134
30,624
4,637
25,987
1,878
18,809
198,674
28,503
8,310
100,079
10,110
89,970
4,869
56,913
32,024
28,389
499,769
4,320
28,092
15,105
392,270
2,141
20,798
12,954
310,900
1,801
7,294
2,151
81,370
341
3,932
13,284
107,499
2,179
355,578
43,803
1,345
42,458
70,704
30,354
25,149
40,728
154,192
262,816
35,922
1,042
34,880
63,108
25,979
23,947
36,593
125,866
220,965
26,663
859
25,804
43,821
21,434
17,239
23,563
87,769
41,852
9,259
183
9,076
19,287
4,545
6,708
13,029
38,098
92,762
7,881
303
7,578
7,5%
4,375
1,202
4,135
28,326
41 Total liabilities and equity capital
2,757,037
2,044,592
1,631,887
412,706
712,445
42 Total liabilities4
2,555,990
1,901,025
1,520,169
380,856
654,965
43 Total deposits
44 Individuals, partnerships, and corporations
45
U.S. government
46 States and political subdivisions in the United States
47 Commercial banks in the United States
48 Other depository institutions in the United States
49 Certified and official checks
50 All other
2,087,487
1,903,324
4,463
107,679
36,294
8,261
17,554
9,912
1,500,698
1,363,686
3,532
73,118
31,709
6,336
13,390
8,928
1,221,735
1,113,896
2,998
61,400
23,335
5,372
9,401
5,333
278,963
249,790
534
11,717
8,374
964
3,989
3,596
586,789
539,638
931
34,561
4,585
1,925
4,164
984
51 Total transaction accounts
52 Individuals, partnerships, and corporations
53 U.S. government
54 States and political subdivisions in the United States
55 Commercial banks in the United States
56 Other depository institutions in the United States
57 Certified and official checks
58 All other
610,213
526,666
3,131
24,279
25,062
5,247
17,554
8,274
456,694
389,185
2,369
16,717
22,975
4,197
13,390
7,861
365,291
315,334
1,894
13,753
17,028
3,372
9,401
4,509
91,403
73,851
475
2,964
5,947
825
3,989
3,352
153,519
137,481
762
7,562
2,087
1,050
4,164
413
59 Demand deposits (included in total transaction accounts)
60 Individuals, partnerships, and corporations
61 U.S. government
62 States and political subdivisions in the United States
63 Commercial banks in the United States
64 Other depository institutions in the United States
65 Certified and official checks
66 All other
414,314
342,143
3,062
13,016
25,036
5,231
17,554
8,271
321,736
261,170
2,326
9,847
22,955
4,188
13,390
7,860
251,835
207,581
1,852
8,121
17,007
3,363
9,401
4,509
69,900
53,589
474
1,725
5,947
825
3,989
3,351
92,578
80,972
736
3,170
2,081
1,043
4,164
412
1,477,274
1,376,658
1,332
83,400
11,232
3,014
1,638
1,044,003
974,501
1,163
56,400
8,734
2,138
1,067
856,444
798,562
1,104
47,647
6,307
2,000
823
187,559
175,939
59
8,753
2,426
138
244
433,270
402,157
169
27,000
2,498
875
571
1 Total assets6
2 Cash and balances due from depository institutions
3 Currency and coin
4 Noninterest-bearing balances due from commercial banks
Other
6 Total securities, loans, and lease financing receivables (net of unearned income)
7
8
9
10
11
12
13
14
15
16
17
18
19
Total securities, book value
U.S. Treasury securities and U.S. government agency and corporation obligations
Securities issued by states and political subdivisions in the United States
Taxable
Tax-exempt
Other securities
All holdings of private certificates of participation in pools of residential mortgages
Federal funds sold and securities purchased under agreements to resell
Federal funds sold
Securities purchased under agreements to resell
Total loans and lease financing receivables, gross
LESS: Unearned income on loans
Total loans and leases (net of unearned income)
Total loans, gross, by category
20 Loans secured by real estate
21 Construction and land development
22 Farmland
1-4 family residential properties
23
24
Revolving, open-end loans, and extended under lines of credit
25
All other loans
26 Multifamily (5 or more) residential properties
27 Nonfarm nonresidential properties
28
29
30
31
32
33
34
35
36
37
38
39
40
Loans to depository institutions
Loans to finance agricultural production and other loans to farmers
Commercial and industrial loans
Acceptances of other banks
Loans to individuals for household, family, and other personal expenditures
(includes purchased paper)
Obligations (other than securities) of states and political subdivisions in the United States
Nonrated industrial development obligations
Other obligations (excluding securities)
All other loans
Lease financing receivables
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining assets
67 Total nontransaction accounts
68 Individuals, partnerships, and corporations
69 U.S. government
70 States and political subdivisions in the United States
71 Commercial banks in the United States
72 Other depository institutions in the United States
73 All other
Commercial Banks
All
4.22—Continued
Members
Item
Nonmembers
Total
Total
Federal funds purchased and securities sold under agreements to repurchase 12
Federal funds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining liabilities
National
State
257,977
31,888
31,251
10,382
86,907
25,743
2,175
14,907
85,320
221,332
23,490
16,184
9,234
71,673
24,541
1,273
12,637
72,274
165,219
19,800
13,014
7,124
56,913
17,775
1,147
10,609
50,256
56,113
3,690
3,170
2,109
14,760
6,766
126
2,029
22,019
36,645
8,398
15,067
1,149
15,234
1,202
901
2,269
13,045
201,047
143,567
111,717
31,850
57,480
84 Assets held in trading accounts
85
U.S. Treasury securities
86
U.S. government agency corporation obligations
87
Securities issued by states and political subdivisions in the United States
88
Other bonds, notes, and debentures
89
Certificates of deposit
90
Commercial paper
91
Bankers acceptances
92
Other
25,600
15,438
3,804
963
373
818
55
1,356
2,305
25,104
15,328
3,798
947
363
818
54
1,336
2,287
13,793
6,989
2,667
790
177
414
54
895
1,636
11,310
8,339
1,131
158
186
404
0
441
651
496
110
6
16
11
0
1
20
18
93 Total individual retirement accounts (IRA) and Keogh plan accounts
94 Total brokered deposits
95 Total brokered retail deposits
96
Issued in denominations of $100,000 or less
97
Issued in denominations greater than $100,000 and participated out by the broker
in shares of $100,000 or less
99,777
59,345
22,390
9,219
71,191
45,688
14,400
4,139
58,929
38,005
11,330
3,721
12,262
7,684
3,069
417
28,586
13,656
7,991
5,080
13,172
10,261
7,609
2,652
2,911
337,247
186,204
564,864
352,752
36,205
189,911
1,673,173
251,322
131,811
373,280
257,143
30,448
131,487
1,178,962
206,204
101,326
314,661
213,932
20,321
110,603
969,900
45,118
30,485
58,618
43,211
10,127
20,884
209,062
85,926
54,393
191,585
95,609
5,757
58,424
494,211
1,674,267
1,246,948
1,020,348
226,600
427,318
195,978
135,416
112,409
23,007
60,562
339,682
185,371
340,041
581,416
251,759
131,074
244,577
388,357
206,069
101,156
202,557
321,977
45,690
29,918
42,020
66,380
87,923
54,297
95,464
193,059
12,966
5,336
4,290
1,046
7,630
74
75
76
77
78
79
80
81
82
83 Total equity capital9
MEMO
98
99
100
101
102
103
104
Savings deposits
Money market deposit accounts (MMDAs)
Other savings deposits
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All NOW accounts (including Super NOW)
Total time and savings deposits
Quarterly averages
105 Total loans
106 Transaction accounts (NOW accounts, ATS accounts, and telephone and preauthorized
transfer accounts)
107
108
109
110
Nontransaction accounts
Money market deposit accounts (MMDAs)
Other savings deposits
Time certificates of deposit of $100,000 or more
All other time deposits
111 Number of banks
1. Effective Mar. 31, 1984, the report of condition was substantially revised for
commercial banks. Some of the changes are as follows: (1) Previously, banks with
international banking facilities (IBFs) that had no other foreign offices were
considered domestic reporters. Beginning with the Mar. 31, 1984 call report these
banks are considered foreign and domestic reporters and must file the foreign and
domestic report of condition; (2) banks with assets greater than $1 billion have
additional items reported; (3) the domestic office detail for banks with foreign
offices has been reduced considerably; and (4) banks with assets under $25 million
have been excused from reporting certain detail items.
2. The " n . a . " for some of the items is used to indicate the lesser detail available
from banks without foreign offices, the inapplicability of certain items to banks
that have only domestic offices and/or the absence of detail on a fully consolidated
basis for banks with foreign offices.
3. All transactions between domestic and foreign offices of a bank are reported
in "net due from" and "net due to." All other lines represent transactions with
parties other than the domestic and foreign offices of each bank. Since these
intraoffice transactions are nullified by consolidation, total assets and total
liabilities for the entire bank may not equal the sum of assets and liabilities
respectively, of the domestic and foreign offices.
4. Foreign offices include branches in foreign countries, Puerto Rico, and in
U.S. territories and possessions; subsidiaries in foreign countries; all offices of
Edge act and agreement corporations wherever located and IBFs.
5. The 'over 100' column refers to those respondents whose assets, as of June
30 of the previous calendar year, were equal to or exceeded $100 million. (These
respondents file the FFIEC 032 or FFIEC 033 call report.) The 'under 100' column
refers to those respondents whose assets, as of June 30 of the previous calendar
year, were less than $100 million. (These respondents filed the FFIEC 034 call
report.)
6. Since the domestic portion of allowances for loan and lease losses and
allocated transfer risk reserve are not reported for banks with foreign offices, the
components of total assets (domestic) will not add to the actual total (domestic).
7. Since the foreign portion of demand notes issued to the U.S. Treasury is not
reported for banks with foreign offices, the components of total liabilities (foreign)
will not add to the actual total (foreign).
8. The definition of 'all other' varies by report form and therefore by column in
this table. See the instructions for more detail.
9. Equity capital is not allocated between the domestic and foreign offices of
banks with foreign offices.
10. Only the domestic portion of federal funds sold and securities purchased
under agreements to resell are reported here, therefore, the components will not
add to totals for this item.
11. "Acceptances of other banks" is not reported by domestic respondents less
than $300 million in total assets, therefore the components will not add to totals for
this item.
12. Only the domestic portion of federal funds purchased and securities sold
are reported here, therefore the components will not add to totals for this item.
13. Components of assets held in trading accounts are only reported for banks
with total assets of $1 billion or more; therefore the components will not add to the
totals for this item.
A78
Federal Reserve Board of Governors
ALAN GREENSPAN, Chairman
MANUEL H . JOHNSON, Vice Chairman
MARTHA R . SEGER
WAYNE D . ANGELL
OFFICE OF BOARD
DIVISION
MEMBERS
JOSEPH R. COYNE, Assistant
DONALD J. WINN, Assistant
to the Board
to the Board
BOB STAHLY MOORE, Special Assistant to the Board
LEGAL
DIVISION
J. VIRGIL MATTINGLY, JR., General
Counsel
RICHARD M. ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
RICKI R. TIGERT, Associate General Counsel
SCOTT G. ALVAREZ, Assistant General Counsel
MARYELLEN A. BROWN, Assistant to the General Counsel
OF INTERNATIONAL
EDWIN M. TRUMAN, Staff
ROBERT F. GEMMILL, Staff Adviser
DONALD B. ADAMS, Assistant
Director
PETER HOOPER III, Assistant
Director
KAREN H. JOHNSON, Assistant
Director
RALPH W. SMITH, JR., Assistant
Director
DIVISION
OF RESEARCH
Secretary
JENNIFER J. JOHNSON, Associate
BARBARA R. LOWREY, Associate
Secretary
Secretary
DIVISION OF CONSUMER
AND COMMUNITY
AFFAIRS
GRIFFITH L . GARWOOD,
WILLIAM TAYLOR, Staff
MYRON L. KWAST, Assistant
Director
PATRICK M. PARKINSON, Assistant
Director
MARTHA S. SCANLON, Assistant
Director
JOYCE K. ZICKLER, Assistant
Director
LEVON H. GARABEDIAN, Assistant
Director
DIVISION
OF MONETARY
DONALD L. KOHN,
AFFAIRS
Director
DAVID E. LLNDSEY, Deputy
Director
BRIAN F. MADIGAN, Assistant
Director
RICHARD D. PORTER, Assistant
Director
NORMAND R.V. BERNARD, Special Assistant to the Board
OFFICE OF THE INSPECTOR
Director
FREDERICK M. STRUBLE, Associate
ROGER T. COLE, Assistant
JAMES I. GARNER, Assistant
GENERAL
Director
WILLIAM A. RYBACK, Deputy Associate Director
STEPHEN C. SCHEMERING, Deputy Associate Director
RICHARD SPILLENKOTHEN, Deputy Associate Director
H E R B E R T A. B L E R N , Assistant
Director
J O E M . C L E A V E R , Assistant
Director
Director
Director
Assistant Director
MICHAEL G. MARTINSON, Assistant
Director
ROBERT S. PLOTKIN, Assistant
Director
SIDNEY M. SUSSAN, Assistant
Director
LAURA M. HOMER, Securities Credit Officer
MARTHA BETHEA, Deputy Associate Director
PETER A. TINSLEY, Deputy Associate Director
Director
DON E. KLINE, Associate
GOETZINGER,
Director
Director
DIVISION OF BANKING
SUPERVISION AND
REGULATION
D.
STATISTICS
(Administration )
GLENN E. LONEY, Assistant
Director
ELLEN MALAND, Assistant
Director
DOLORES S. SMITH, Assistant
Director
JAMES
AND
EDWARD C. ETTIN, Deputy
Director
THOMAS D. SIMPSON, Associate
Director
LAWRENCE SLIFMAN, Associate
Director
DAVID J. STOCKTON, Associate
Director
SECRETARY
WILLIAM W . W I L E S ,
Director
LARRY J. PROMISEL, Senior Associate Director
CHARLES J. SLEGMAN, Senior Associate Director
DAVID H. HOWARD, Deputy Associate Director
MICHAEL J. PRELL,
OFFICE OF THE
FINANCE
BRENT L. BOWEN, Inspector
General
BARRY R. SNYDER, Assistant Inspector General
A79
and Official Staff
EDWARD W . KELLEY, JR.
JOHN P. LAWARE
OFFICE OF
STAFF DIRECTOR
OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK
ACTIVITIES
FOR MANAGEMENT
S. DAVID FROST, Staff
Director
EDWARD T. MULRENIN, Assistant Staff Director
PORTIA W. THOMPSON, Equal Employment Opportunity
Programs Officer
DIVISION OF HUMAN
MANAGEMENT
DAVID L . SHANNON,
CLYDE H . FARNSWORTH, JR.,
CONTROLLER
Controller
STEPHEN J. CLARK, Assistant Controller (Programs and
Budgets)
DARRELL R. PAULEY, Assistant Controller (Finance)
OF SUPPORT
ROBERT E . FRAZIER,
SERVICES
Director
GEORGE M. LOPEZ, Assistant
DAVID L. WILLIAMS, Assistant
Director
Director
OFFICE OF THE EXECUTIVE
INFORMATION RESOURCES
ALLEN E. BEUTEL, Executive
DIRECTOR FOR
MANAGEMENT
Director
STEPHEN R. MALPHRUS, Deputy Executive Director
DIVISION
SYSTEMS
OF HARDWARE
BRUCE M . BEARDSLEY,
AND
SOFTWARE
Director
DAY W. RADEBAUGH, JR., Assistant Director
ELIZABETH B. RIGGS, Assistant
DIVISION OF APPLICATIONS
STATISTICAL
SERVICES
WILLIAM R . JONES,
Director
DEVELOPMENT
Director
RICHARD C. STEVENS, Assistant
Director
PATRICIA A. WELCH, Assistant
Director
ROBERT J. ZEMEL, Assistant
Director
RESERVE
Director
DAVID L. ROBINSON, Associate
Director
C. WILLIAM SCHLEICHER, JR., Associate
Director
BRUCE J. SUMMERS, Associate
Director
CHARLES W. BENNETT, Assistant
Director
JACK DENNIS, JR., Assistant
Director
EARL G. HAMILTON, Assistant
Director
JOHN H. PARRISH, Assistant
Director
LOUISE L. ROSEMAN, Assistant
Director
FLORENCE M. YOUNG, Assistant
Director
Director
GEORGE E . LIVINGSTON,
DIVISION
DIVISION OF FEDERAL
BANK
OPERATIONS
Director
RESOURCES
JOHN R. WEIS, Associate
Director
ANTHONY V. DLGLOIA, Assistant
Director
JOSEPH H. HAYES, JR., Assistant
Director
FRED HOROWITZ, Assistant
Director
OFFICE OF THE
THEODORE E. ALLISON, Staff
AND
80
Federal Reserve Bulletin • December 1989
Federal Open Market Committee
FEDERAL
OPEN MARKET
COMMITTEE
MEMBERS
ALAN GREENSPAN, Chairman
W A Y N E D . ANGELL
ROGER GUFFEY
MANUEL H . JOHNSON
E. GERALD CORRIGAN, Vice
SILAS KEEHN
EDWARD W . KELLEY, JR.
JOHN P. LAWARE
ALTERNATE
EDWARD G . BOEHNE
ROBERT H . BOYKIN
Chairman
THOMAS C . MELZER
MARTHA R . SEGER
RICHARD F . SYRON
MEMBERS
W . LEE HOSKINS
JAMES H . OLTMAN
GARY H . STERN
STAFF
DONALD L. KOHN, Secretary and Economist
NORMAND R.V. BERNARD, Assistant
Secretary
GARY P. GLLLUM, Deputy Assistant Secretary
J. VIRGIL MATTINGLY, JR., General
Counsel
ERNEST T. PATRIKIS, Deputy General Counsel
MICHAEL J. PRELL,
Economist
EDWIN M . TRUMAN,
Economist
ANATOL B . B A L B A C H , Associate
RICHARD G. DAVIS, Associate
Economist
THOMAS E. DAVIS, Associate
Economist
DAVID E. LINDSEY, Associate
Economist
ALICIA H. MUNNELL, Associate
Economist
LARRY J. PROMISEL, Associate
Economist
KARL A. SCHELD, Associate
Economist
CHARLES J. SLEGMAN, Associate
Economist
THOMAS D. SIMPSON, Associate
Economist
LAWRENCE SLIFMAN, Associate
Economist
Economist
PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account
SAM Y. CROSS, Manager for Foreign Operations, System Open Market Account
FEDERAL
ADVISORY
COUNCIL
DONALD N . BRANDIN,
President
SAMUEL A. MCCULLOUGH, Vice
President
THOMAS H. O'BRIEN, Fourth District
B. KENNETH WEST, Seventh District
DONALD N. BRANDIN, Eighth District
LLOYD P. JOHNSON, Ninth District
JORDAN L. HAINES, Tenth District
FREDERICK DEANE, JR., Fifth District
JAMES E. BURT III, Eleventh District
KENNETH L. ROBERTS, Sixth District
PAUL HAZEN, Twelfth District
J. TERRENCE MURRAY, First District
WILLARD C. BUTCHER, Second District
SAMUEL A. MCCULLOUGH, Third District
HERBERT V . PROCHNOW,
WILLIAM J. KORSVIK, Associate
Secretary
Secretary
A81
and Advisory Councils
CONSUMER
ADVISORY
COUNCIL
JUDITH N. BROWN, Edina, Minnesota, Chairman
WILLIAM E. ODOM, Dearborn, Michigan, Vice Chairman
NAOMI G. ALBANESE, Greensboro, North Carolina
GEORGE H. BRAASCH, Chicago, Illinois
BETTY TOM CHU, Arcadia, California
CLIFF E. COOK, Tacoma, Washington
JERRY D. CRAFT, Atlanta, Georgia
DONALD C. DAY, Boston, Massachusetts
R.B. (JOE) DEAN, JR., Columbia, South Carolina
RICHARD B. DOBY, Denver, Colorado
WILLIAM C. DUNKELBERG, Philadelphia, P e n n s y l v a n i a
RICHARD H . FINK, W a s h i n g t o n , D . C .
JAMES FLETCHER, C h i c a g o , Illinois
STEPHEN GARDNER, D a l l a s , T e x a s
ELENA G. HANGGI, Little Rock, Arkansas
JAMES HEAD, Berkeley, California
THRIFT INSTITUTIONS
ADVISORY
ROBERT A . HESS, W a s h i n g t o n , D . C .
RAMON E. JOHNSON, Salt Lake City, Utah
BARBARA KAUFMAN, San Francisco, California
A. J. (JACK) KING, Kalispell, Montana
MICHELLE S . MEIER, W a s h i n g t o n , D . C .
RICHARD L. D. MORSE, Manhattan, Kansas
LINDA K. PAGE, Columbus, Ohio
SANDRA PHILLIPS, P i t t s b u r g h , P e n n s y l v a n i a
VINCENT P. QUAYLE, Baltimore, Maryland
CLIFFORD N . ROSENTHAL, N e w Y o r k , N e w Y o r k
ALAN M . SILBERSTEIN, N e w Y o r k , N e w Y o r k
RALPH E. SPURGIN, Columbus, Ohio
DAVID P. WARD, Peapack, New Jersey
LAWRENCE WINTHROP, P o r t l a n d , O r e g o n
COUNCIL
GERALD M. CZARNECKI, Honolulu, Hawaii, President
DONALD B. SHACKELFORD, Columbus, Ohio, Vice President
CHARLOTTE CHAMBERLAIN, G l e n d a l e , California
JOE C. MORRIS, Overland Park, Kansas
ROBERT S. DUNCAN, Hattiesburg, Mississippi
ADAM A. JAHNS, Chicago, Illinois
H. C. KLEIN, Jacksonville, Arkansas
PHILIP E. LAMB, Springfield, Massachusetts
JOSEPH W . MOSMILLER, B a l t i m o r e , M a r y l a n d
LOUIS H. PEPPER, Seattle, Washington
MARION O. SANDLER, Oakland, California
CHARLES B. STUZIN, Miami, Florida
A82
Federal Reserve Board Publications
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When a charge is indicated, payment should accompany request
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THE U . S . ECONOMY IN AN INTERDEPENDENT WORLD: A
MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each.
WELCOME TO THE FEDERAL RESERVE. M a r c h 1989. 14 pp.
PROCESSING A N APPLICATION THROUGH THE FEDERAL RESERVE SYSTEM. A u g u s t 1985. 30 p p .
INDUSTRIAL PRODUCTION—1986 EDITION. D e c e m b e r 1986.
440 pp. $9.00 each.
FINANCIAL FUTURES AND OPTIONS IN THE U . S . ECONOMY.
THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS. 1984. 120 pp.
ANNUAL REPORT.
ANNUAL REPORT: BUDGET REVIEW, 1 9 8 8 - 8 9 .
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$2.50 each in the United States, its possessions, Canada,
and Mexico. Elsewhere, $35.00 per year or $3.00 each.
BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint
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ANNUAL STATISTICAL DIGEST
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1981.
1982.
1983.
1984.
1985.
1986.
1987.
1988.
1980. 305 pp.
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1989. 256 pp.
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$ 7.50 per copy.
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SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE-
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THE FEDERAL RESERVE ACT and other statutory provisions
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through August 1988. 608 pp. $10.00
REGULATIONS OF THE BOARD OF GOVERNORS OF THE
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ANNUAL PERCENTAGE RATE TABLES (Truth in L e n d i n g —
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INTRODUCTION TO FLOW OF FUNDS. 1980.68 pp. $1.50 each;
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CONSUMER EDUCATION
PAMPHLETS
Short pamphlets suitable for classroom use. Multiple copies
are available without charge.
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
Federal Reserve Glossary
A Guide to Business Credit and the Equal Credit Opportunity
Act
A Guide to Federal Reserve Regulations
How to File A Consumer Credit Complaint
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 Settlement Costs
A Consumer's Guide to Mortgage Refinancing
Making Deposits: When Will Your Money Be Available?
When Your Home is on the Line: What You Should Know
About Home Equity Lines of Credit
PAMPHLETS FOR FINANCIAL
INSTITUTIONS
Short pamphlets on regulatory compliance, primarily suitable for banks, bank holding companies, and creditors.
10 or more to one address, $1.25 each.
FEDERAL RESERVE REGULATORY SERVICE. L o o s e l e a f ; up-
dated at least monthly. (Requests must be prepaid.)
Consumer and Community Affairs Handbook. $75.00 per
year.
Monetary Policy and Reserve Requirements Handbook.
$75.00 per year.
Securities Credit Transactions Handbook. $75.00 per year.
The Payment System Handbook. $75.00 per year.
Federal Reserve Regulatory Service. 3 vols. (Contains all
three Handbooks plus substantial additional material.)
$200.00 per year.
Rates for subscribers outside the United States are as
follows and include additional air mail costs:
Federal Reserve Regulatory Service, $250.00 per year.
Each Handbook, $90.00 per year.
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
A83
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
156. INTERNATIONAL TRENDS FOR U . S . BANKS AND BANK-
ING MARKETS, by James V. Houpt. May 1988. 47 pp.
157. M 2 PER UNIT OF POTENTIAL G N P AS AN ANCHOR FOR
THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D.
Porter, and David H. Small. April 1989. 28 pp.
158. THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIREMENTS IN THE MARKETS FOR STOCKS AND DE-
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 114-145 are 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 ,
by 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 AND SECTORAL EFFECTS OF
THE ECONOMIC RECOVERY TAX ACT: SOME SIMULA-
TION RESULTS, by Flint Brayton and Peter B. Clark.
December 1985. 17 pp.
149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS
IN BANKING BEFORE AND AFTER ACQUISITION, b y
Stephen A. Rhoades. April 1986. 32 pp.
150. STATISTICAL COST ACCOUNTING MODELS IN BANKING: A REEXAMINATION AND AN APPLICATION, b y
John T. Rose and John D. Wolken. May 1986. 13 pp.
151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT
PRICING FROM 1983 THROUGH 1985, b y Patrick I. M a -
honey, 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.
153. STOCK MARKET VOLATILITY, by Carolyn D. Davis and
Alice P. White. September 1987. 14 pp.
154. THE EFFECTS ON CONSUMERS AND CREDITORS OF
PROPOSED CEILINGS ON CREDIT CARD INTEREST
RATES, by Glenn B. Canner and James T. Fergus.
October 1987. 26 pp.
155. THE FUNDING OF PRIVATE PENSION PLANS, b y Mark J.
Warshawsky. November 1987. 25 pp.
RIVATIVE PRODUCTS, by Mark J. Warshawsky with the
assistance of Dietrich Earnhart. September 1989. 23 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.
Home Equity Lines of Credit. 6/88.
U.S. International Transactions in 1988. 5/89.
Mutual Recognition: Integration of the Financial Sector in the
European Community. 9/89
A84
ANTICIPATED
SCHEDULE OF RELEASE DATES FOR PERIODIC RELEASES—BOARD
OF THE FEDERAL RESERVE SYSTEM1 (PAYMENT MUST ACCOMPANY
REQUESTS.)
Weekly Releases
Annual
rate
Approximate
release days
OF
GOVERNORS
Date of period
to which data refer
• Aggregate Reserves of Depository Institutions and
the Monetary Base. H.3 (502)
$15.00
Thursday
• Actions of the Board: Applications and Reports
Received. H.2 (501)
$35.00
Friday
• Assets and Liabilities of Insured Domestically
Chartered and Foreign Related Banking
Institutions. H.8 (510) [1.25]
$15.00
Monday
• Factors Affecting Reserves of Depository
Institutions and Condition Statement of Federal
Reserve Banks. H.4.1 (503) [1.11]
$15.00
Thursday
Week ended previous
Wednesday
• Foreign Exchange Rates. H.10 (512) [3.28]
$15.00
Monday
Week ended previous Friday
• Money Stock, Liquid Assets, and Debt Measures.
H.6 (508) [1.21]
$35.00
Thursday
Week ended Monday of
previous week
• Selected Borrowings in Immediately Available
Funds of Large Member Banks. H.5 (507) [1.13]
$15.00
Wednesday
Week ended Thursday of
previous week
• Selected Interest Rates. H.15 (519) [1.35]
$15.00
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]
$15.00
Friday
Wednesday, 1 week earlier
• Capacity Utilization: Manufacturing, Mining,
Utilities, and Industrial Materials. G.3 (402) [2.12]
$ 5.00
Midmonth
Previous month
• Changes in Status of Banks and Branches. G.4.5
(404)
$15.00
1st of month
Previous month
• Consumer Installment Credit. G. 19 (421) [1.55,
1.56]
$ 5.00
5th working day of
month
2nd month previous
• Debits and Deposit Turnover at Commercial Banks.
G.6 (406) [1.22]
$ 5.00
12th of month
Previous month
• Finance Companies. G.20 (422) [1.51, 1.52]
$ 5.00
5th working day of
month
2nd month previous
• Foreign Exchange Rates. G.5 (405) [3.28]
$5.00
1st of month
Previous month
• Industrial Production. G.12.3 (414) [2.13]
$15.00
Midmonth
Previous month
• Loans and Securities at all Commercial Banks. G.7
(407) [1.23]
$ 5.00
3rd week of month
Previous month
• Major Nondeposit Funds of Commercial Banks.
G. 10 (411) [1.24]
$ 5.00
3rd week of month
Previous month
• Monthly Report of Assets and Liabilities of Large
International Banking Facilities. G. 14 (416)
$ 5.00
20th of month
Wednesday, 2 weeks earlier
Week ended previous
Wednesday
Week ended previous Saturday
Wednesday, 3 weeks earlier
Monthly Releases
1. Release dates are those anticipated or usually met. However, please note that for some releases there is normally a certain variability because
of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later
than anticipated.
The respective BULLETIN tables that report the data are designated in brackets.
A85
Monthly Releases—Continued
Annual
rate
Approximate
release days
Date or period
to which data refer
1st of month
Previous month
$ 5.00
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
• Flow of Funds: Seasonally Adjusted and
Unadjusted. Z.l (780) [1.58, 1.59]
$15.00
23rd of February,
May, August,
and November
Previous quarter
• Flow of Funds Summary Statistics Z.7 (788) [1.57,
1.58]
$ 5.00
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)
$ 5.00
15th of March,
June, September,
and December
Previous quarter
• Survey of Terms of Bank Lending. E.2 (111) [1.34]
$ 5.00
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
$ 5.00
October and April
Previous year
$ 5.00
February
End of previous June
• Research Library—Recent Acquisitions. G.15 (417)
• Selected Interest Rates. G.13 (415) [1.35]
Free of
charge
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)
A86
Index to Statistical Tables
References are to pages A3-A77 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, 72-77
Domestic finance companies, 36
Federal Reserve Banks, 10
Financial institutions, 26
Foreign banks, U.S. branches and agencies, 21
Automobiles
Consumer installment credit, 39, 40
Production, 49, 50
BANKERS acceptances, 9, 23, 24
Bankers balances, 18-20, 72, 74, 76. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 34
Rates, 24
Branch banks, 21, 57
Business activity, nonfinancial, 46
Business expenditures on new plant and equipment, 35
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 48
Capital accounts
Banks, by classes, 18, 73, 75, 77
Federal Reserve Banks, 10
Central banks, discount rates, 69
Certificates of deposit, 24
Commercial and industrial loans
Commercial banks, 16, 19, 72, 74, 76
Weekly reporting banks, 19-21
Commercial banks
Assets and liabilities, 18-20
Commercial and industrial loans, 16, 18, 19, 20, 21, 72,
74, 76
Consumer loans held, by type and terms, 39, 40
Loans sold outright, 19
Nondeposit funds, 17
Number by classes, 73, 75, 77
Real estate mortgages held, by holder and property, 38
Time and savings deposits, 3
Commercial paper, 23, 24, 36
Condition statements (See Assets and liabilities)
Construction, 46, 51
Consumer installment credit, 39, 40
Consumer prices, 46, 48
Consumption expenditures, 53, 54
Corporations
Nonfinancial, assets and liabilities, 35
Profits and their distribution, 35
Security issues, 34, 67
Cost of living (See Consumer prices)
Credit unions, 26, 39. (See also Thrift institutions)
Currency and coin, 18, 72, 74, 76
Currency in circulation, 4, 13
Customer credit, stock market, 25
DEBITS to deposit accounts, 15
Debt (See specific types of debt or securities)
Demand deposits
Banks, by classes, 18-21, 73, 75, 77
Demand Deposits—Continued
Ownership by individuals, partnerships, and
corporations, 22
Turnover, 15
Depository institutions
Reserve requirements, 8
Reserves and related items, 3, 4, 5, 12
Deposits (See also specific types)
Banks, by classes, 3, 18-20, 21, 73, 75, 77
Federal Reserve Banks, 4, 10
Turnover, 15
Discount rates at Reserve Banks and at foreign central
banks and foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
EMPLOYMENT, 47
Eurodollars, 24
FARM mortgage loans, 38
Federal agency obligations, 4, 9, 10, 11, 31, 32
Federal credit agencies, 33
Federal finance
Debt subject to statutory limitation, and types and ownership of gross debt, 30
Receipts and outlays, 28, 29
Treasury financing of surplus, or deficit, 28
Treasury operating balance, 28
Federal Financing Bank, 28, 33
Federal funds, 6, 17, 19, 20, 21, 24, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 37, 38
Federal Housing Administration, 33, 37, 38
Federal Land Banks, 38
Federal National Mortgage Association, 33, 37, 38
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 4, 10, 11, 30
Federal Reserve credit, 4, 5, 10, 11
Federal Reserve notes, 10
Federal Savings and Loan Insurance Corporation insured
institutions, 26
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 36
Business credit, 36
Loans, 39, 40
Paper, 23, 24
Financial institutions
Loans to, 19, 20, 21
Selected assets and liabilities, 26
Float, 4
Flow of funds, 41, 43, 44, 45
Foreign banks, assets and liabilities of U.S. branches and
agencies, 21
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4, 10, 19, 20
Foreign exchange rates, 70
Foreign trade, 56
Foreigners
Claims on, 57, 59, 62, 63, 64, 66
Liabilities to, 20, 56, 57, 59, 60, 65, 67, 68
A87
GOLD
Certificate account, 10
Stock, 4, 56
Government National Mortgage Association, 33, 37, 38
Gross national product, 53
HOUSING, new and existing units, 51
INCOME, personal and national, 46, 53, 54
Industrial production, 46, 49
Installment loans, 39, 40
Insurance companies, 26, 30, 38
Interest rates
Bonds, 24
Consumer installment credit, 40
Federal Reserve Banks, 7
Foreign central banks and foreign countries, 69
Money and capital markets, 24
Mortgages, 37
Prime rate, 23
International capital transactions of United States, 55-69
International organizations, 59, 60, 62, 65, 66
Inventories, 53
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 18, 19, 20, 21, 26
Commercial banks, 3, 16, 18-20, 38, 72
Federal Reserve Banks, 10, 11
Financial institutions, 26, 38
LABOR force, 47
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 18-20
Commercial banks, 3, 16, 18-20, 72, 74, 76
Federal Reserve Banks, 4, 5, 7, 10, 11
Financial institutions, 26, 38
Insured or guaranteed by United States, 37, 38
MANUFACTURING
Capacity utilization, 48
Production, 48, 50
Margin requirements, 25
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 6
Reserve requirements, 8
Mining production, 50
Mobile homes shipped, 51
Monetary and credit aggregates, 3, 12
Money and capital market rates, 24
Money stock measures and components, 3, 13
Mortgages (See Real estate loans)
Mutual funds,'35
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 29
National income, 53
OPEN market transactions, 9
PERSONAL income, 54
Prices
Consumer and producer, 46, 52
Stock market, 25
Prime rate, 23
Producer prices, 46, 52
Production, 46, 49
Profits, corporate, 35
REAL estate loans
Banks, by classes, 16, 19, 20, 38, 74
Financial institutions, 26
Terms, yields, and activity, 37
Type of holder and property mortgaged, 38
Repurchase ajgreements, 6, 17, 19, 20, 21
Reserve requirements, 8
Reserves
Commercial banks, 18, 73
Depository institutions, 3, 4, 5, 12
Federal Reserve Banks, 10
U.S. reserve assets, 56
Residential mortgage loans, 37
Retail credit and retail sales, 39, 40, 46
SAVING
Flow of funds, 41, 43, 44, 45
National income accounts, 53
Savings and loan associations, 26, 38, 39, 41. (See also
Thrift institutions)
Savings banks, 26, 38, 39
Savings deposits (See Time and savings deposits)
Securities (See also specific types)
Federal and federally sponsored credit agencies, 33
Foreign transactions, 67
New issues, 34
Prices, 25
Special drawing rights, 4, 10, 55, 56
State and local governments
Deposits, 19, 20
Holdings of U.S. government securities, 30
New security issues, 34
Ownership of securities issued by, 19, 20, 26
Rates on securities, 24
Stock market, selected statistics, 25
Stocks (See also Securities)
New issues, 34
Prices, 25
Student Loan Marketing Association, 33
TAX receipts, federal, 29
Thrift institutions, 3. (See also Credit unions and Savings
and loan associations)
Time and savings deposits, 3, 13, 17, 18, 19, 20, 21, 73,
75, 77
Trade, foreign, 56
Treasury cash, Treasury currency, 4
Treasury deposits, 4, 10, 28
Treasury operating balance, 28
UNEMPLOYMENT, 47
U.S. government balances
Commercial bank holdings, 18, 19, 20
Treasury deposits at Reserve Banks, 4, 10, 28
U.S. government securities
Bank holdings, 18-20, 21, 30, 72, 74, 76
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 4, 10, 11, 30
Foreign and international holdings and transactions, 10,
30, 68
Open market transactions, 9
Outstanding, by type and holder, 26, 30
Rates, 24
U.S. international transactions, 55-69
Utilities, production, 50
VETERANS Administration, 37, 38
WEEKLY reporting banks, 19-21
Wholesale (producer) prices, 46, 52
YIELDS (See Interest rates)
A88
Index to Volume 75
GUIDE TO PAGE REFERENCES IN MONTHLY ISSUES
Issue
January
February
March
April
May
June
Text
1-52
53-106
107-226
227-320
321-422
423-460
Issue
"A" Pages
1-88
1-78
1-78
1-84
1-82
1-102
Index to
tables
89-90
79-80
79-80
85-86
83-84
103-04
The "A" pages consist of statistical tables and reference information.
AGRICULTURE
Drought and the economy, article
Loans
Recent developments
Recent experience of farm lenders
Aldrich-Vreeland Act
Allocated Transfer Risk Reserve
Alvarez, Scott G., Assistant General Counsel,
Legal Division, appointment
Amel, Dean F., article
American Bankers Association, basic banking data
American Depository Receipts, international
securities markets
1
466
9
424
137
152
120
555
560
American Enterprise Institute
53
Angell, Wayne D., Federal Reserve System's
budget, statement
677
Annual Statistical Digest, 1988, publication
820
Articles
Asset securitization: a supervisory perspective
659
Drought, agriculture, and the economy
1
Establishment and evolution of the Federal
Reserve Board: 1913-23
227
Formation of private business capital: trends, recent
developments, and measurement issues
771
Home equity lending
333
International gold standard and U.S. monetary
policy from World War I to the New Deal
423
Monetary policy in an era of change
53
Monetary policy reports to the Congress
107,527
Mutual recognition: integration of the financial
sector in the European Community
591
Priced services, 1988 and 1989
540
Recent developments in the profitability and
lending practices of commercial banks
461
Transfer risk in U.S. banks
255
Treasury and Federal Reserve foreign exchange
operations
58, 259, 485, 670
Trends in banking structure since the mid-1970s
120
U.S. international transactions in 1988
321
U.S. policy on the problems of international debt
727
Understanding the behavior of M2 and V2
244
Asset-backed securities, article
659
July
August
September ....
October
November
December ....
Text
461--526
527--590
591--658
659--726
727--770
771--844
"A" pages
1-77
1-93
1-79
1-77
1-87
1-85
Index to
tables
78-79
94-95
80-81
78-79
88-89
86-87
Statistical tables are indexed separately (see p. A86 of this issue).
Automated clearinghouses
Credit and debit transactions, revised proposal
Transactions, proposed action, announcement
BANK failures, number, 1987-89, statement
Bank for International Settlements
Bank Holding Company Act of 1956
Orders issued under
1867 Western Financial Corporation
1st AmBanc, Inc
1st United Bancorp
352
288
808
591
45
839
403
Abbott Bank Group, Inc
723
Abess Properties, Ltd
Adam Bank Group, Inc
Adrian Bancshares, Inc
Advance Banc Shares, Inc
AFC Acquisition Corporation
Alabama National Bancorporation
Alexis Bancorp, Inc
Algemene Bank Nederland, N.V., Amsterdam,
The Netherlands,
Allegiant Bancorp, Inc
Allied Irish Banks, PLC, Dublin, Ireland
Alpine Banks of Colorado
Amboy Bancorp, Inc
Amarillo Delaware Bancorp, Inc
American Bancorp of Ponca City, Inc
American Bancorporation, Inc
American Bankshares, Inc
American Chartered Bancorp, Inc
American Community Bank Group, Inc
American National Corporation
American State Corporation
ANB Bankcorp, Inc
Annapolis Bancshares, Inc
ARSEBECO, Inc
Artemisia Holdings, Inc
Atcorp, Inc
Athens Bancorp, Inc
B.H.C., Inc
B.M.J. Financial Corp
B/W Bancshares, Inc
220
317
44
220
224
402
839
653,842
765
524
522
765
839
723
102
44
100
220
522
100
100
402
701
585
44
220
44
705
220
A89
Page
Bank Holding Company Act of 1956-Continued
Orders issued under—Continued
Bainum Bancorp II
839
Bainum Bancorp
100
Baldwin Bancshares, Inc
317
Banc One Corporation
574,653,842
Bancook Corporation
839
Bancorp II, Inc
44
Bancorp of Tomah, Inc
48
BancFirst Corp
839
Bancpal, Inc
723
Bank of Bermuda Limited
513
Bank of Bolivar Employee Stock Ownership
Plan and Trust
586
Bank of Boston Corporation
35,79
Bank of Ireland, Dublin, Ireland
39
Bank of Maryland Corp
220, 723
Bank of New Mexico Holding Company
48
Bank of New York Company, Inc
725
BankAmerica Corporation
78,825,827
Bankers Trust New York Corporation
192,829
Bankers' Bancorporation of Florida, Inc
522
Banknorth Group, Inc
703
Banque Indosuez, Paris, France
717
Banterra Corp
44
Barclays Bank PLC, London, England
725
Barclays PLC, London, England
725
Barnett Banks, Inc
80, 82,100,190,220, 319, 585
Baxter County Bancshares, Inc
220
BayBanks, Inc
223,725
Belle Fourche Bancshares, Inc
586
Berger Bancorp, Inc
44
Bermuda (U.S.) Holdings Limited
513
Big Sioux Financial, Inc
50
BJS, Inc
522
Blairstown Bancorp, Inc
586
Bloomfield Hills Bancorp
765
44
Blue Ridge Bankshares, Inc
Bluestem Financial Corp
220
Blunt Bank Holding Company
44
BMR Financial Group, Inc
586, 651
BOC Bancshares, Inc
651
BON, Inc
100
Bosshard Banco, Ltd
651
Bosshard Financial Group, Inc
100
Boston Bank of Commerce Employee Stock
Ownership Trust
839
Bradley County Financial Corp
220
Bridge Bancorp, Inc
402
Brooke Holdings, Inc
104
Bryan Bancorp of Georgia, Inc
723
BT Financial Corporation
457
BTNCCorp
457
Buena Vista Bancorp, Inc
44
Business Bancorp
768
C.N. Bancorp, Ltd., Taipei, Taiwan
187
Cameron Investment Company, Inc
457
Campbell Hill Bancshares, Inc
651
Canaan National Bancorp, Inc
220
Capital City Bank Group, Inc
522
Capital Holdings, Inc
638
Carolina FirstBancShares, Inc
522
Cascade Bancorporation, Inc
765
Catherine Stuart Schmoker Family Partnership
317
CB&T Bancshares, Inc
319, 381, 402, 723
CB&T Financial Corp
514
CBS Banc-Corp
765
Central Bancompany
44
Central of Kansas V, Inc
651
Central of Kansas, Inc
651
Cenvest, Inc
100
Chandlerville Bancshares, Inc
317
Charter 95 Corporation
100
Page
Bank Holding Company Act of 1956-Continued
Orders issued under—Continued
Chase Manhattan Corporation
192, 458,725
Chemical Banking Corporation
97, 725
Chemical Financial Corporation
522
Chesapeake Bank Corporation
319
China Trust Capital B.V., The Netherlands
302
China Trust Holdings Corp
302
China Trust Holdings N. V., Curacao,
Netherlands Antilles
302
Chisholm Bancshares, Inc
457
Citicorp
85,192,524,716
Citizens and Southern Corporation
48,839
Citizens and Southern Georgia Corporation
48
Citizens Bancorp
402
Citizens Bancorporation, Inc
522
Citizens Bancshares, Inc., Bozeman, Montana
522
Citizens Bancshares, Inc., Salineville, Ohio
839
Citizens Independent Bancorp, Inc
44
Citizens Investment Co., Inc
317
Citizens National Bancorporation
765
Citizens National Bancshares, Inc
220
CitNat Bancorp, Inc
317
Citrus Financial Services Corporation
839
City Bancorp, Inc
522
Clarke, Inc
839
Cleveland Bancshares, Inc
221
CMJR Investments, Inc
402
CNB Bancorp, Inc
44
CNB Bancshares, Inc
317
Coal City Corporation
586
Colfax Bancshares, Inc
766
Collins Bankcorp, Inc
221
Colonial Bancshares, Inc
766
Colwich Financial Corporation
402
Comerica Incorporated
224, 725
Commbanc Shares, Inc
100
Commerce Bancorp, Inc
44
Commerce Bancshares, Inc
43
Commercial Bankstock, Inc
651
Commonwealth Trust Bancorp, Inc
586
Community Bancorp, Inc
101
Community Financial Bancorp
457
Community Financial Corporation
101, 524
Community First South Dakota Bankshares, Inc
769
Community Illinois Corporation, Rock Falls, 111
651
Compagnie Financiere de Suez, Paris, France
717
Conrad Company
402
Constellation Bancorp
522
586
Continental Bancorporation
Continental Bank and Trust Company
223
Continental Bank Corporation
304
Continental Illinois Bancorp, Inc
304
Conway BanCorp, Inc
221
Cordele Bancshares, Inc
522
Cordova Bancshares, Inc
221
Country Bank Shares, Inc
651
County Bancorporation, Inc
522
Credit and Commerce American Holdings, N.V.,
Curacao, Netherlands Antilles
302
Credit International Bancshares, Ltd
187
Crestar Financial Corporation
382
Crosswhite Bankshares, Inc
839
Crown National Bancorporation, Inc
522
D & D Bancshares, Inc
101
Dahlonega Bancorp, Inc
651
Dassel Investment Company
101
Dearborn Bancorp, Inc
522
Deerfield Financial Corporation
522
Dentel Bancorporation
766
Dickinson Bancorporation, Inc
402
Dickinson Financial Corporation
45
Draper Holding Company
842
90
Federal Reserve Bulletin • December 1989
Page
Bank Holding Company Act of 1956-Continued
Orders issued under-Continued
Dresdner Bank AG, Frankfurt, Federal
Republic of Germany
642
Duke Financial Group, Inc
45
Dulaney Bancorp, Inc
45
Dumas Bancshares, Inc
101
Eastchester Financial Corporation
402
Eastern Bank
319
Eastern Savings Bancorp, Inc
319
Easton Bancshares, Inc
586
Edgeley Bancorporation, Inc
45
Empire Bank Corp
45
Employee Stock Ownership Trust of the People's
Bank & Trust Company of Pickett County
766
Enterprise Bancorp, Inc
402
Equimanagement, Inc
221
Equimark Corporation
221,707
Equity Financial Ventures, Inc
45
Evans Bancorp, Inc
101
Exchange Bancorp, Inc
101
F & M National Corporation
840
F & P Bancshares, Inc
723
F.B.H. Corp
457
F.N.B. Corporation
46, 49
F.N.B.A. Holding Company, Inc
711
F.W.S.F. Corporation
651
Fairfield County Bancorp, Inc
101,221
Family Bancorp
319
Fannin Bancshares, Inc
586
Far West Bancorporation
839
Farmers & Merchants Bancshares, Inc
221
Farmers Bancshares of Oberlin, Inc
766
Farmers Bancshares, Inc
523
Fanners Savings Bank Employee Stock
Ownership Plan and Trust
523
Farmers State Bancorp
101
Farmers State Bankshares, Inc
839
Farmington Bancorp, Inc
586
Fayette Bancorporation
766
Fayette County Bancshares, Inc
839
FBC Holding Company, Inc
723
FBT Bancshares, Inc
221
839
FDH Bankshares, Inc
Fidelity Bankshares, Inc
766
Fifth Third Bancorp
101,651,766,843
Finacorp, Inc
221
Financial Future Corporation
402
Financial Institutions Holding Corporation
45
Financial Partners, Inc
27
Financial Services Corporation of the Midwest
402
FIRST SUBURBAN BANCORP CORPORATION
102
First American Corporation
576
First Banc Securities, Inc
221
First Bancorp, Inc
223,523
First Bancorporation of Akron
45
First Bank System, Inc
49, 74, 387, 654, 725
First Bankers Trustshares, Inc
221
First Banks, Inc
402
First Busey Corporation
101,651
First Capital Corporation
766
First Cherokee Bancshares, Inc
221
First Chicago Corporation
43, 838
First City Bank of Dallas
101
First Clay County Banc Corporation
586
First Clayton Bancshares, Inc
766
First Colonial Bankshares Corporation
221
First Commerce Bancshares, Inc
317
First Commercial Bancshares, Inc
221
First Commercial Corporation
45
First Commercial Holding Corporation
651
First Commonwealth Financial Corporation
404
First Community Bancorp, Inc
840
Page
Bank Holding Company Act of 1956-Continued
Orders issued under—Continued
First Community Bank
317
First Dakota Financial Corporation
101
First Eagle Bancshares, Inc
840
First Essex Bancorp, Inc
457
First Essex NH Bancorp, Inc
457
First Financial Bancorp
651
First Holmes Corporation
652
First Interstate Bancorp
708
708
First Interstate Bank of California
First Interstate Corporation of Wisconsin
101, 103
First Kansas Holding Company
402
First McKinley Corporation
586
First Michigan Bank Corporation
523
First National Bancorp
221,523
First National Bancorp, Inc
101
First National Bancshares
ofWinfield, Inc.,
102,223,318,402
First National Bancshares, Inc
402
First National Bank of Blue Island Employee Stock
Ownership Trust
723
First National Bank of Chicago
43
First National Bankshares of Henry County, Inc
840
First National Bowie Bancorp
403
First National Corporation
766
First National Financial Corporation
652
First National Insurance Agency, Inc
457
First National of Nebraska, Inc
27
First National Security Company
766
First Oak Brook Bancshares, Inc
221
First of America Bancorporation-Illinois, Inc
45, 318
First of America Bank Corporation .. 45,102,317,318,836
First of America Bank Corporation-Indiana
102
First of Searcy, Inc
318
First Paxton Bancorp, Inc
102
First Security Corporation
766
First Shares, Inc
46
First Southeastern Banc Group, Inc
457
First Southern Bancorp, Inc
46
First State Bancorp, Inc
766
First State Bancorporation
46
First State Bancshares, Inc
403
First State Bankshares, Inc
523
First Tennessee National Corporation
103
First Tuttle Bancorp, Inc
318
First Union Corporation
645
First United Bancorporation
588
First Universal Bancorporation, Inc
766
First Wachovia Corporation
586
First Wisconsin Corporation
31,102,318
Firstar Corporation
651
FirstBank Holding Company of Colorado
43, 521, 585
FirsTier Financial, Inc
188
FirstMorrill Co
45
FirstPerryton Bancorp, Inc
45
Firstshares of Texas, Inc
46
FISCORP, Inc., dba First Institutional
Service Corporation
523
Fleet/Norstar Financial Group, Inc., .. 49, 50, 223, 404, 654
Florida Security Holding Corporation
46
FM Bancorp, Inc
767
FNB Bancshares, Inc
403
FNB, Inc
46,523
FNC Acquisition Company
586
46
FNW Bancorp, Inc
Ford Bank Group, Inc
46
Foresight Financial Group, Inc
403
Fort Wayne National Corporation
638
Fostoria Bankshares, Inc
403
Four County Bancshares, Inc
318
Fourth Financial Corporation
46, 723
Fourth St. Financial Corp
767
Index to Volume 75
Page
Bank Holding Company Act of 1956-Continued
Orders issued under—Continued
Frankford Corporation
Franklin Bancorporation, Inc
403
523
Franklin Financial Corporation
652
Franklin State Bancshares, Inc
840
Friendship Bancorp
221
FSB Bancorp, Inc
586
FSB of Victor, Inc
221
Fuji Bank, Limited, Tokyo, Japan,
94, 577, 654
Fulton Bancshares Corporation
586
Gateway Financial Corporation
523
GNB Bancshares, Inc
840
George Washington Banking Corporation
318
Gold Bancshares, Inc
723
Golden Gate Bancor
457
Golden Isles Financial Holdings, Inc
586
Golden Triangle Bancshares, Inc
221
Gore-Bronson Bancorp, Inc
46
Grand Bank Financial Corporation
654
GreatBanc, Inc
524
Green Top, Inc
840
Greene County Bancshares, Inc
767
Greenville Financial Corporation
222
Growth Financial Corporation
840
Guaranty Bancshares Corporation
104, 652
Guaranty National Bancshares, Inc
840
Gwinnett Bancorp, Inc
222
Hampton Park Corporation
104
Harmonia Bancorp, Inc
767
Harrogate Corporation
222
Hastings Financial Corporation
457
Henderson Bancorporation, Inc
767
Heritage Bancshares Corporation
652
Heritage Bancshares, Inc
586
Hershare Financial Corporation
586
HMC Holding Company
46
HNB Bancorp, Inc
586
Home Interstate Bancorp
725
Hongkong and Shanghai Banking Corporation,
Hong Kong, B.C.C
217, 224, 455, 725
Horizon Bancorp, Inc
723
HSBC Holdings B.V., Amsterdam,
The Netherlands
217,224,455,725
HTB, Inc
767
Hub Financial Corporation
222
Huntington Bancshares Incorporated
33,765
Huron Community Financial Services, Inc
457
Huron National Bancorp, Inc
767
Hutchinson Financial Corporation
652
IBT Bancorp, Inc
102
Illinois Financial Services, Inc
652
Illinois One Bancorp, Inc
523
Illinois Valley Bancshares, Inc
840
Indebancorp
767
Indecorp, Inc
222
Independent Southern Bancshares, Inc
587
Indian River Banking Company
457
Indiana Bancshares, Inc
46
InterCounty Bancshares, Inc., Employee
Stock Ownership Plan
840
International Bancorporation
767
Interstate Bancshares, Inc
767
Investors Financial Corporation
840
Iowa Financial Bancorporation
723
J.P. Morgan & Co. Incorporated
192
Jacob Schmidt Company
102
James Stuart, Jr. Family Partnership
317
Jamestown Bancorp, Inc
46
Jason Bankshares, Inc
318
JDOB, Incorporated
587
Jefferson Bancshares, Inc., Louisville, Ga
523
Jefferson Bankshares, Inc., Charlottesville, Va
652
A91
Page
Bank Holding Company Act of 1956-Continued
Orders issued under—Continued
Johnson Heritage Bancorp, Ltd
318
Johnson International Bancorp, Ltd
843
Jorgenson Holding Company
318
JSB Bancorp
767
JTNB Bancorp, Inc
318
Kellett N.V., Curacao,
Netherlands Antilles
217,224,455,725
Kermit State Bancshares, Inc
104
524
Kerndt Bank Services, Inc
Kersey Bancorp, Inc
222
Key Bancshares of Wyoming Inc
50
Key Centurion Bancshares, Inc
523, 587
KeyCorp
50
Klossner Bancorporation, Inc
102
Lake Crystal Bancorporation, Inc
104
Lake Shore Bancorp., Inc
523
Lakeland Bancorp, Inc
102
Lakeland Bancshares, Inc
222
Lakeside Bank Holding Company
222
Lakeside Credit Company, Inc
457
Lanier Bankshares, Inc
403
Lawrence L. Osborn Scholarship Trust
457
Lawton Partners Holding Company
102
Lee National Banc Corp
767
Lexington Bancshares, Inc
587
Liberty National Bancorp, Inc
767
Lincoln Holding Company
840
Litchville State Bank Holding Company
723
Livingston & Company Southwest, L.P.
46, 840
Livingston Southwest Corporation
46, 840
Logansport Bancorp, Inc
725
Long-Term Credit Bank of Japan, Limited,
Tokyo, Japan
719
Lordsburg Financial Corporation
652
Louisville Company
458
Lower Rio Grande Valley Bancshares, Inc
318
Lubbock National Bancshares, Inc
767
M & M Bancorp, Inc
47
M.O. Packard Investment Company
47
M.O.I. Inc
841
Mackinaw Valley Financial Services, Inc
724
Madison Agency, Inc
652
Madison Bancshares Group, Ltd
403
Magna Group, Inc
318,403
Main Line Bancshares, Inc
767
Main Street Banks Incorporated
46
Manufacturers Hanover Corporation
725
Marietta Bancshares, Inc
50
Marine Corporation
767
Marine Midland Banks, Inc
217, 224, 455, 725
Markesan Bancshares, Inc
222
840
Marseilles Bancorporation, Inc
Marshall & Ilsley Corporation
46,318,724
Martinius Corporation
767
MCB Acquisition Company
318
Mercantile Bancshares, Inc
724
Mercantile Bankshares Corporation
104
Merchant Bank Corporation
724
Merchant House
724, 768
Merchants National Corporation
46, 388, 767
Meredosia Bancorporation, Inc
47
Meridian Bancorp, Inc
652
Metrocorp, Inc
519
MGB Bancshares, Inc
457
Miami Bancshares, Inc
458
Miami Corporation
724
Michael Bancorporation, Inc
403
Michigan National Corporation
88, 652, 721, 765
Mid Am, Inc
403
MidAmerican Corporation
515
MidConn Bancorp, Inc
318
92
Federal Reserve Bulletin • December 1989
Page
Bank Holding Company Act of 1 9 5 6 - C o n t i n u e d
Orders issued under-Continued
Midlantic Corporation
Midmerica Bank Corporation
MidSouth Bancshares, Inc
Midwest Financial Group
Midwest Guaranty Bancorp, Inc
Mineral King Bancorp, Inc
Mineral Wells Bancshares, Inc
Minnesota State Bancshares, Inc
Minonk Bancshares, Inc
Mission-Valley Bancorp
Missouri Valley Financial Services, Inc
MNC Financial, Inc
Monahans Bancshares, Inc
Montana Bancsystem, Inc
Monticello Bankshares, Inc
Moody Bank Holding Company, Inc
Moore Financial Group, Incorporated
222,
Morris State Bancshares, Inc
Mount Sterling National Holding Corporation
Mountain West Banking Corporation
Mountain-Valley Bancshares, Inc
Multibank Financial Corp
Muncy Bank Financial, Inc
Napa Valley Bancorp
National Banc of Commerce Company
National City Bancshares, Inc
National City Corporation
National Penn Bancshares, Inc
National Westminster Bancorp Inc
National Westminster Bancorp NJ
National Westminster Bank PLC,
London, England
NatWest Holdings Inc., Wilmington, Delaware
NatWest Holdings, Inc., New York, New York
NB Corporation
NBCC, Inc
NBD Bancorp, Inc
NBM Bancorp, Inc
NCNB Corporation
NEB Corporation
Nevada National Co
New East Bancorp
New Mexico Bank Corporation, Inc
New Mexico Financial Corporation
New Richland Bancshares, Inc
New Ross Bancorp
Nippon Credit Bank, Ltd., Tokyo, Japan
NoDak Bancorporation
NorCentral Bancshares, Inc
North East Bancshares, Inc
North Georgia National Bancshares, Inc
North Linn Corporation
North Shore Financial Corporation
Northeast Bancorp, Inc
Northern New York Bancorp, Inc
Northern Trust Corporation
Northwest Illinois Bancorp, Inc
Norton Capital Corporation
NorwestCorporation
NSB Holdings, Inc
O.A.K. Financial Corporation
Ocean State Bancshares
Oelwein Bancorporation
Old National Bancorp
Omega Financial Corporation
OMNIBANCORP
ONBANCorp, Inc
Orono Financial, Inc
Orrstown Financial Services, Inc
P.C.B. Bancorp, Inc
652
523
587
386
102
318
767
222
724
403
403
90, 842
104
49
102
102
223, 458
587
842
652
102
768
47
222
47
102
650, 754
587
653
652
653, 725
653
725
653
47
102,223
587
520
222
525
458,841
47
103
653
523
308
523
587
458
653
724
47
725
403
458,523,842
768
523
43,100,223,399,
524, 588, 769, 842
768
222
841
724
222,318
222
841
724
587
458
47
Page
Bank Holding Company Act of 1956-Continued
Orders issued under-Continued
P.N.B. Financial Corporation
841
Panhandle Aviation, Inc
319
Parker Bancshares, Inc
47
PBA Bancorporation
458
People's Savings Financial Corp
587
Peoples Bancorp Inc
47
Peoples Bancorp of Winchester Inc
653
Peoples Bancshares of Gambier Incorporated
458
Peoples Bancshares, Inc., Elba, Alabama
47
Peoples Bankshares, Inc., Parshall, North Dakota
524
Peoples Community Bancorporation, Inc
403
Peoples Financial Corp. of Illinois, Inc
768
Peoples First Corporation
653
Peoples Heritage Financial Group, Inc
47, 653
Peoples Investment Corporation
319
Pine Creek Bancorp, Inc
653
PINNACLE BANC GROUP, Inc
724
Pioneer Acquisition Corp
653
Pioneer Bancorp, Inc
47
Plains Corporation
841
Plainview Bankshares, Inc
843
Plainview Holding Company
724
PNB Bankshares, Inc
403
PNC Financial Corp
47,312,396,588
Ponte Vedra Banking Corporation
640
Port St. Lucie National Bank Holding Corp
47
Prairie State Bancorp, Inc
841
Premier Bancshares of Texas, Inc
48
Princeton Agency, Inc
524
PSB Financial Shares, Inc
841
PTB Corporation
222
Public Bank Holding Company, Inc
306
PWB Bancshares, Inc
458
Raymond Acquisition Corporation
48
Raymond Bancorp, Inc
48
Readlyn Bancshares, Inc
768
Red River Financial Corporation
524
Redwood Empire Bancorp
48
Reelfoot Bancshares, Inc
768
Regency Financial Shares, Inc
524
Regent Bancshares, Corp
458
Reliable Community Bancshares, Inc
403
Republic Bancorp, Inc
48
RHNB Corporation
654
River Forest Bancorp, Inc
841
Rodgers Family Bancshares, Inc
841
Romney Bankshares, Inc
524
Royal Bank of Scotland Group PLC,
Edinburgh, Scotland
41
S&T Bancorp, Inc
404
SBK Bancshares, Inc
653
Scandinavian Bank Group PLC, London,
United Kingdom
311
Schneider Bancorporation
103
Scott Bancshares, Inc
222
Scott Stuart Family Partnership
317
Seafirst Corporation
827
Sebastian Bankshares, Inc
48
Security Bancorp, Inc
768
Security Bancshares Company
524
Security Bancshares, Inc
649
Security Exchange Bancorp., Inc
724
Security National Corporation
222
Security Pacific Corporation
76, 192, 726, 756
Seligman Bancshares, Inc
48
Sequoyah County Bankshares, Inc
222
Shelby Insurance, Inc
840
Sheldon Security Bancorporation, Inc
768
Sheldon Security Financial Corporation
768
Sierra Petroleum Co., Inc
48
Signet Banking Corporation
34
Index to Volume 75
Page
Bank Holding Company Act of 1956-Continued
Orders issued under—Continued
Sleepy Hollow Bancorp, Inc
404
Smoky Mountain Bancorp, Inc
587
Societe Generale
580
Society for Savings Bancorp, Inc
726
724
South Banking Company
South Gasconade Investment Corporation
404
South Holt Bancshares, Inc
841
Southeast Banking Corporation
92, 459
SouthTrust Corporation
48,77,222,223,
516,524,647,724
Southwest Missouri Bancorporation, Inc
48
Sovran Financial Corporation
103
Spearman Bancshares, Inc
841
St. Croix Valley Bancshares, Inc
575
St. Landry Bancshares, Inc
524
State Bancshares, Inc
103, 587
State National Bancshares, Inc
223
State Savings Bancorp, Inc
653
Stearns Financial Services, Inc
841
Stone County National Bancshares, Inc
724
Stuart Family Partnership
317
Sumitomo Bank, Limited, Osaka, Japan
582,587
Summcorp
103
Summit Bancorporation
712,841
SunTrust Banks, Inc
43
Susquehanna Bancshares, Inc
458
Sweet Water State Bancshares, Inc
319
TB&C Bancshares, Inc
723
TCB Bancshares, Inc
587
Terrapin Bancorp, Inc
48
Terre Du Lac Bancshares, Inc
841
Teton Bancshares, Inc
724
Texas Bancorporation, Inc
587
Texas Peoples National Bancshares, Inc
103
Texop Bancshares II, Inc
404
Texop Bancshares, Inc
404, 640
Thompson Financial, Ltd
48
Thompson Insurance, Inc
524
Three Forks Bancorporation
524, 525
Tokai Bank, Limited, Naka-ku, Nagoya, Japan
224
Tomball Capital Corporation
842
Tomball National BancShares, Inc
842
Tompkins Bancorp, Inc
404
Toronto-Dominion Bank, Toronto, Canada
525
Trenton Bancshares, Inc
404
Trenton Trust Bancshares, Inc
48
Tritten Bancshares, Inc
48
Trustcorp, Inc
104
Tulsa National Bancshares, Inc
843
U.S. Bancorp
49,404
U.S. Trust Corporation
654
Union Bancorporation
319
Union Planters Corporation
223, 319, 842, 843
United Bancshares of Nebraska, Inc
319
United Community Corporation
307
United Counties Bancorporation
714
United Missouri Bancshares, Inc
223
United Nebraska Financial Co
842
United Saver's Bancorp, Inc
654
United Security Bancorporation
103
ValliCorp Holdings, Inc
843
Veedersburg Bank Corporation
458
Ventura County National Bancorp
769
Vineyard National Bancorp
49
W-CV Bancorp., Inc
223
W.T.B. Financial Corporation
458
Wabeno Bancorporation, Inc
768
Washington Bancorporation
29
Washington National Holdings, N.V.,
Netherlands Antilles
29
Wauneta Falls Bancorp, Inc
653
A93
Page
Bank Holding Company Act of 1956-Continued
Orders issued under—Continued
WB&T Bancshares, Inc
842
Wellington Bancorp, Inc
319
Wells Fargo & Company
588
Weslaco Bancshares, Inc
49
West Jersey Bancshares, Inc
843
West Michigan Financial Corporation
524
West-Ark Bancshares, Inc
842
Western Bancshares, Inc
319
Western Springs Bancorp, Inc
49
WestOne Bancorp
587
Westpac Banking Corporation, Sydney, Australia
398
Wheeler County Bancshares
103
Whiting Bankshares, Inc
223
Whitney Holding Corporation
458
Widmer Bancshares, Inc
524
Wilkinson Banking Corporation
725
Williams-Augusta Acquisition Corp
187
WIN Bancorp, Inc
49
Winter-Park Bancshares, Inc
103
Wisdom Holding Corporation
104
Withee Bank Shares, Inc
725
WNB Bancshares, Inc
103
Wood Lake Bancorporation, Inc
319
Worthington Bancshares, Inc
49
Wyandotte Ban Corporation
49
Bank holding companies
Capital adequacy guidelines, risk-based measure
171
Bank insurance fund, state of and adequacy of supervisory
framework for banking institutions, statement
738
Bank Merger Act
Orders issued under
1st United Interim Bank
405
BancFirst
726
Bank of Mid-Jersey
405
Bank of New York
654
BankofRomney
525
Central Florida Banc Shares, Inc
50
Central Savings Bank
843
Chemical Bank and Trust Company
844
Citizens Bank of Virginia
405
Cole Taylor Bank/Drovers
105
Comerica Bank-Detroit
844
CrestarBank
655
First Bank of Crestview
726
First Bank of Johnston City
224
First Bank of Stockton/Warren
588
First Bank/Dixon
588
First City Bank of Dallas
50
First Community Bank, Inc
105, 726
First Interstate Bank of California
44
First of America Bank-Northern Michigan
588, 655
First Western Bank Custer
224
Heartland Bank
844
Indian Head Bank and Trust Company
769
Kent City State Bank
459
Liberty Bank
588
Manufacturers Hanover Trust Company
761
MNC Financial, Inc
588
NorstarBank
655
Pioneer Bank and Trust
588
Scottscom Bank
50
Security Bank and Trust Company
769
Sovran Bank/Central South
722
Sovran Bank/Memphis
320
State Savings Bank of South Lyon
50
Texas Bank
224
Texas Commerce Bank-Rio Grande Valley
655
Union Colony Bank
588
Victoria Bank & Trust Company
844
Banking structure trends, article
120
94
Federal Reserve Bulletin • December 1989
Page
Banking system
Condition, statement
803
Debt-servicing difficulties, statement
136
Basic Banking Services Access Act of 1989, H.R. 3181,
statements
554, 786
Basle Accord
598
Basle Committee on Banking Regulations
and Supervisory Practices
147, 597
Board of Governors (See also Federal Reserve System)
Consumer Advisory Council (See Consumer Advisory
Council)
Establishment and evolution of the Federal Reserve
Board, article
227
Federal Open Market Committee (See Federal Open Market
Committee)
Fees (See Fees for Federal Reserve services to depository
institutions)
Litigation (See Litigation)
Members
Heller, H. Robert, resignation
566
List, 1913-89
656
Policy statements (See specific subject)
Publications and releases (See Publications in 1989)
Regulations (See Regulations)
Rules (See Rules)
Staff
Changes
Johnson, Jennifer J
65
Lepper, Susan J
821
McAfee, James
65
Mattingly, J. Virgil, Jr
288
Parkinson, Patrick M
352
Snyder, Barry R
288
Stockton, David J
...751
Sfockwell, Eleanor J
19
Summers, Bruce, J
152
Tigert, Ricki R
152
Welch, Patricia A
698
List
A78
Staff studies (See Staff studies)
Statements to the Congress (See Statements to
Congress)
Thrift Institutions Advisory Council (See Thrift Institutions
Advisory Council)
Boemio, Thomas R., article
659
Book-entry securities, expenses to Federal Reserve Banks .... 681
Bowen, Brent L., statement
684
Brady Commission, and international securities markets
561
Brady, Nicholas F.
Plan to address economic situation of heavily
indebted countries
472
Proposal
563
Brotman, Daniel, reports
485
Bulletin board, statistical releases computerized,
announcement
288
Business capital, private
Accumulation during the 1980s
780
Distinction between capital stock and capital input
771
Estimates for the United States
772
Growth of since World War II
775
Relation between growth of stock and investment
783
CANNER, GlennB., article
Capital Adequacy Guidelines, home equity lending
Cassis de Dijon
Check clearing and collection
Expedited Funds Availability Act and Regulation CC,
revision, announcement
New Jersey state law, preemption determination
Returned check services, revised prices
Teller's and cashier's checks, delayed disbursement,
announcement
333
343
593
443
73
351
443
Page
Chicago Board of Trade's Aurora system, statement on
international securities markets
Chicago Mercantile Exchange's GLOBEX, statement on
international securities markets
Code of Federal Regulations, correction, amendment
Commercial banks, profitability and lending practices,
article
Commodity Credit Corporation
560
560
73
461
1,113
Community Reinvestment Act of 1980
Enforcement, statement
619
Information statement, joint revision
Statement on legislation
351
550
Compensation program and Federal Reserve System
budget, statement
679
Competitive Equality Banking Act of 1987
Federal Reserve System budget, statement
678
Home equity lending
341,342
Thrift industry recovery and reform
280, 349
Completing the Internal Market, white paper
592
Comptroller of the Currency, Office of
Asset-backed securities, article
662
Joint statement on Community Reinvestment Act
351, 551
Consumer Advisory Council
Meetings
352,567,820
Members, new appointments
148
Nominations sought for appointees, announcement
631
Consumer Attitudes, 1988 surveys
334
Corporate restructuring activity, statements
142, 267
Council of Economic and Finance Ministers
599
Country Exposure Lending Survey
256
Country Exposure Report
256
Crabbe, Leland, article
423
Credit
Home equity
Brochure
698
Lending
333,341,342,566
Stock market (See Over-the-counter stocks, list of
marginable)
Truth in Lending (See Regulations: Z)
Cross, Sam Y., reports
58, 259, 485, 670
DEALERS, primary, designations of those controlled by
firms from United Kingdom and Japan, announcement
Depository institutions (See specific types)
Reserve requirements (See Reserve requirements and
Regulations: D)
Deposits, brokered, use by financial institutions
Deregulation, effects on monetary policy
Developing countries, announcement regarding statement
on policy on debt
Direct deposit, social security benefits, disclosure
requirements
Directors, Federal Reserve Banks and Branches, list
Discount rate at Reserve Banks, change
Douglas amendment and the banking structure
Drought, article
Durkin, Thomas A., article
Dykes, Say re Ellen, article
698
495
54
350
352
407
287
122
1
333
227
EARNINGS and expenses (See Income and expenses)
Economic financial developments (See Monetary policy)
Economic policy objectives, statement
282
Edwards, Gerald A., Jr., article
659
Electric Cooperative Association and CRA
622
Electronic benefits transfer
556
European Community
Implications for U.S.financialinstitutions of completion of
internal market by 1992, statement
744
Commission
591
Program, article
591
European Financial Area
591
Exchange Stabilization Fund
61,262,489,674
Index to Volume 75
Page
Expedited Funds Availability Act
Legislation and Federal Reserve System budget,
statement
Regulation CC, amendment regarding payable
through checks
Regulation CC, revisions,announcement
Expenses (See Income and expenses)
678
631
443
FAIR Credit and Charge Card Disclosure Act
Amendment, announcement
443
Proposal
65
Farm Credit System
9
Farming (See Agriculture)
Federal deficit, statement
15
Federal Deposit Insurance Corporation
Banking structure trends
124
Brokered deposits effect
496
CRA policy statement
551
Joint statement on Community Reinvestment Act
351
Thrift industry recovery and reform
278,347
Federal Emergency Management Agency, training
materials, use
500
Federal Financial Institutions Examination Council
Country exposure report
256
A Citizen's Guide to CRA, publication
553
Interagency flood insurance examination procedures,
use by the Federal Reserve System
499
Reporting requirements relating to asset-backed
securities, article
664
Federal Home Loan Bank Board
Joint statement regarding Community
Reinvestment Act
351,551
Federal Home Loan Bank System, thrift industry
recovery and reform
279, 348
Federal Home Loan Banks, thrift industry recovery
and reform
278,347
Federal Home Loan Mortgage Corporation,
mortgage-backed securities, article
659
Federal National Mortgage Association, mortgage-backed
securities, article
659
Federal Open Market Committee
Policy actions, record .... 20, 66, 290, 353, 502, 625, 689, 812
Federal Reserve Act, publication
444
Federal Reserve and Treasury foreign exchange operations
(See Foreign exchange operations)
Federal Reserve Banks
Budget, statement
680
Directors, list
407
Discount rates (See Discount rates at Reserve Banks)
Fees (See Fees for Federal Reserve services to depository
institutions)
Income from operations, announcement
150
Federal Reserve Board (See Board of Governors)
Federal Reserve Reform Act of 1989, H.R. 2795, statement.. 798
Federal Reserve System (See also Board of Governors)
Budget, statement
677, 678
Membership, admission of state banks
19, 65, 152,
445, 632, 699
Federal Savings and Loan Insurance Corporation
Monetary policy
615
Thrift industry recovery and reform
278, 347
Fedline II
543
Fedwire funds transfer and book-entry securities transfer,
operating schedule, proposed changes
820
Fees for Federal Reserve services to depository institutions
Check clearing and collection
Expedited Funds Availability Act and Regulation CC,
revision announcement
443
New Jersey state law, preemption determination
73
Returned check services, revised prices
351
Priced services
Automated clearinghouse
543,544
Check collection services
540
A95
Page
Fees for Federal Reserve services to
depository institutions—Continued
Priced services—Continued
Definitive safekeeping and noncash collection
545
Electronic payments
543
Funds transfer service
544
Treasury book-entry securities
545
Financial Accounting Standards Board Statement No. 77,
sales treatment for financial reporting purposes,
asset-backed securities, article
665
Financial Institutions Reform, Recovery and
Enforcement Act of 1989 (FIRREA)
Compliance by banks in home mortgage lending
795
Regulation Y, amendment under provisions of the act
753
Financial Institutions Regulatory and Interest Rate Control
Act and Federal Reserve System budget, statement
678
Financing (See specific subject)
First Massachusetts Management Corporation,
settlement of enforcement proceedings
632
Flood insurance enforcement by the Federal Reserve
System, statement
498
Foreign exchange operations of the Treasury and
Federal Reserve, reports
58,259,485,670
Foreign lending by U.S. banks to developing countries,
statement on policies
563
Friedman, Benjamin, article in Journal of Economic
Perspectives
54
Full Employment and Balanced Growth Act of 1978
(See also Monetary policy: reports to the Congress) .. 107, 527
GARWOOD, Griffith L., statement
619
General Accounting Office
Basic banking data
554
Operation of Office of the Inspector General
686
Generalized System of Preferences
328
Glass-Steagall Act
Asset-based securities, proposal to modify restriction on
underwriting
567
Bank-eligible securities, modifications of Section 20
751
Revenue limit, proposal to increase
567
Gold Standard Act of 1900
423
Gold standard, international, article
423
Government Auditing Standards, and operation
of Office of the Inspector General
686
Government Check Cashing Act of 1989, H.R. 3180,
statements
554,786
Government National Mortgage Association,
mortgage-backed securities, article
659
Gramm-Rudman-Hollings legislation
140
Greenspan, Alan
Corporate restructuring activity, statement
142
Corporate restructuring and federal budget deficit,
statement
267
Economic policy objectives, statement
282
Economic situation, statement
138
Federal deficit, before the National Economic
Commission, statement
15
Federal Reserve Reform Act of 1989, H.R. 2795, and
Zero-Inflation Resolution, H.J. Res. 409, statement
795
Internationalization of securities markets, statement
557
Monetary policy report to Congress, statements
272, 614
Monetary policy, statement
272
Thrift industry, reform and recovery, statement
278, 347
H.R. 176, statement regarding amendment
Hallman, Jeffrey J., staff study
Hearings
February 3, 1989, to rescind rule regarding nonbanking
activities
Metrocorp, Inc. application, announcement
552
263
65
512
96
Federal Reserve Bulletin • December 1989
Page
Heller, H. Robert
Brokered deposits, use byfinancialinstitutions, statement . 495
Resignation as member of the Board of Governors
566
Historical Chart Book
Discontinuance of publication
821
Publication of latest edition
821
Home equity
Article
333
Lending
341,342
Regulation Z, amendment
566
Home Equity Lines of Credit, brochure, publication
698
Home Equity Loan Consumer Protection Act of 1988,
amendment to Regulation Z
566
Home mortgage disclosure, reporting requirements change ... 19
Home Mortgage Disclosure Act
19
Hooper, Peter, article
321
Houpt, James V., article
255
Humphrey-Hawkins Act (See Monetary policy:
reports to the Congress)
INCOME and Expenses, Federal Reserve Banks
Operations, announcement
150
Statement
680
Industrial production, releases .. 13, 63, 134, 265, 345, 441, 491,
548,612,675,736,784
684
Inspector General Act Amendment of 1988, statement
Inspector General, Office of, establishment and operation,
statement
684
Interagency Country Exposure Review Committee
137, 256
Interim Policy Statement on Offshore Netting and
Clearing Arrangements, announcement of issuance
567
Internal Revenue Service and monetary policy
615
International Banking Act and Federal Reserve
System budget, statement
678
International debt
Exposure of largest banking organizations, statement
806
Problems of developing countries, U.S. policy, article
727
International Lending Supervision Act of 1983
Debt-servicing difficulties
137
Reporting requirements
256
U.S. bank lending to developing countries, statement
564
International Monetary Fund
257,472
International Organization of Securities Commissions,
statement on international securities markets
562
International Stock Exchange, statement on international
securities markets
560
International transactions in 1988, article
321
Investment Services Directive
598
JACOWSKI, Michael J., article
Johnson, Jennifer J., Associate Secretary,
Office of the Secretary, appointment
Johnson, Manual H.
Condition of the U.S. banking system, statement
Implications for U.S.financialinstitutions of plans
by the European Community to complete internal
market by 1992, statement
State of bank insurance fund and adequacy of supervisory
framework for banking institutions, statement
Treasury Department report on U.S. international
economic and exchange rate policy, statement
U.S. banking system and debt-servicing difficulties,
statement
Joint Policy Statement on Basic Financial Services
120
M2 and V2 behavior, article
244
M2 per unit of potential GNP as an anchor
for the price level, staff study
263
Margin requirements
Markets for stocks and derivative products, staff study
610
Over-the-counter stocks (See Over-the-counter margin
stocks, list)
Martinson, Michael G., article
255
Mattingly, James V. Jr., General Counsel, appointment
288
McAfee, James, Associate Secretary,
Office of the Secretary, resignation
65
McFadden Act and the banking structure
122
McLaughlin, Mary M., article
461
Meade, Ellen E., article
321
Member banks (See State member banks)
Metzenbaum, Senator Howard M
551, 553
Monetary Control Act of 1980
Federal Reserve System, budget, statement
678
Income, preliminary figures, announcement
150
Priced services
540
Monetary policy
Article
53
Reports to the Congress
107, 527
Statements
272, 614
Money stock data, revision
508
Mutual recognition: integration of the financial sector
in the European Community, article
591
65
803
744
738
810
136
555
KELLEY, Edward W., Jr., Federal Reserve System's budget,
statement
677
Key, Sydney J., article
591
Kohn, Donald L., article
53
Page
LABOR Statistics, Bureau of
327
Large Dollar Payment System Risk, proposed
changes to policy
567
LaWare, John P.
Compliance by state member banks with federal laws
prohibiting discrimination in mortgage lending,
statement
790
Legislation (See subject or specific name of act)
Lepper, Susan J., Assistant Director, Division of
821
Research and Statistics, resignation
Litigation, cases pending involving
Board of Governors
51, 105, 225, 320,405, 459,
525, 589, 655, 726, 770, 844
Loans
Agricultural, recent developments
466
Commercial and industrial, lending practices
463
Consumer, recent developments
466
Foreign addressees, recent developments
466
Lending practices of commercial banks, article
461
Real estate, recent developments
465
Security, recent developments
466
Local Initiatives Support Corporation and CRA
622
Loney, Glenn E., Flood insurance enforcement
by the Federal Reserve System, statement
498
Luckett, Charles A., article
333
NATIONAL Association of Purchasing Management
140
National Economic Commission, statement to,
by Alan Greenspan
15
National Information Center, expenses
to Federal Reserve Banks
681
National Technical Information Service
288
Neighborhood Housing Services and CRA
622
Neighborhood Reinvestment Corporation and CRA
622
New Jersey state law, preemption determination
73
New York state law, preemption determination
25, 351, 362
New York State Banking Department, basic
banking services survey
555
Nondeposit funds, revision to statistical table 1.24
151
OLINER, StephenD., article
Optical Counterfeit Detection System and Federal
Reserve Bank budget
771
683
Index to Volume 75
Page
Orders
Modifications to authorize bank holding company
subsidiaries to underwrite and deal in bank-eligible
securities consistent with Section 20 of the
Glass-Steagall Act
751
Organisation for Economic Co-operation and Development
Codes of Liberalisation
609
European Community, integration, article
591
International securities markets, statement
562
National Treatment Instrument
601
Organization of Petroleum Exporting Countries
and monetary policy
615
Over-the-counter stocks, list of marginable
Revisions, announcements
151,444,447,631,633,820
Amendments regarding changes
153,824
PARKINSON, Patrick M., Assistant Director, Division of
Research and Statistics, appointment
352
Payment System Risk Reduction, announcement
of issuance of policy statements
567
Payments mechanism and systems (See Fees for Federal
Reserve services to depository institutions)
Poole, William, article in Journal of Economic
Perspectives
54
Porter, Richard D.
Article
244
Staff study
263
Priced services, article
540
Pricing of Federal Reserve services (See Fees for Federal
Reserve services to depository institutions)
Prime Minister Takeshita
485
Private book-entry systems, announcement on issuance
of policy statement
567
Private business capital, formation of, trends, recent
developments, and measurement issues, article
771
Private Sector Adjustment Factor, revision to
methodology for computing
567
Production, industrial (See Industrial production)
Profitability of commercial banks, article
461
Publications in 1989
Annual Report, 75th edition, 1988
444
Annual Statistical Digest, 1988
820
Federal Reserve Act
444
Historical Chart Book, 1989
821
Home Equity Lines of Credit, brochure
698
List of Marginable OTC Stocks, revisions .. 151, 444, 631, 820
QUALIFIED thrift lender test
349
REFORM and recovery program support announcement
287
Regulations (Board of Governors, See also Rules)
B, Equal Credit Opportunity
New York state law, preemption determination
25, 352,
361,362
Women's Business Ownership Act, proposal
to implement provisions
631
C, Home Mortgage Disclosure Act, amendment
regarding proposed revisions
820
D, Reserve Requirements of Depository Institutions
Amendment to change reserve requirements
26
E, Electronic Funds Transfer
Code of Federal Regulations, correction, amendment ... 73
Direct deposit, social security benefits, disclosure
requirements, announcement
352
Disclosure requirement, revision to official staff
commentary
362
G, Securities Credit by Persons Other than Banks,
Brokers, or Dealers
Marginable OTC stocks, list, amendment
regarding changes
153, 447, 633, 823
A97
Page
Regulations (Board of Governors) - Continued
H, Membership of State Banking Institutions in the Federal
Reserve System
Risk-based capital guidelines, amendment
299
Flood insurance enforcement by the Federal
Reserve System
498
Investment company stock purchases by state member
banks, interpretation
297, 299
State member bank public information access
287
Stock purchases by state member banks, interpretation
287
announcement
K, International Banking Operations
Banking organizations, statement
137
Q, Interest on Deposits
Deregulation effects on monetary policy
54
T, Credit by Brokers and Dealers
Foreign securities, clearance of transactions
and marginability at broker-dealers,
proposed amendments
823
Marginable OTC stocks, list, amendment
regarding changes
153, 447, 633, 823
U, Credit by Banks for the Purpose of Purchasing
or Carrying Margin Stocks
Marginable OTC stocks, list, amendment
regarding changes
153, 447, 633, 823
X, Borrowers of Securities Credit
Marginable OTC stocks, list, amendment
regarding changes
153, 447, 633, 823
Y, Bank Holding Companies and Change in Bank Control
Bank holding companies allowed to acquire savings
associations in accordance with FIRREA,
amendment
751, 753
Nonbank company share acquisitions, proposal
to rescind provision
150
Operations subsidiaries
19
Risk-based capital guidelines, amendment
156
Z, Truth in Lending
Fair Credit and Charge Card Disclosure Act of 1988
Implementation
443,449
Open-end credit plans, amendment
569
Proposed action
65
Home Equity Loan Consumer Protection Act
Amendment to carry out provisions
566
Proposed action
150
Reverse mortgages, disclosure questions,
announcement
352, 363
Technical error, correction
CC, Availability of Funds and Collection of Checks
Clarification of various provisions, amendment
Expedited Funds Availability Act
Revisions, amendment
Payable through checks, amendment
New Jersey state law, preemption determination
Teller's and cashier's checks, delayed
disbursement
Wisconsin state law, preemption determination,
amendment
Reserve requirements, increase, Dec. 20, 1988
Resolution Trust Corporation
Resumption Act
Risk-based capital
Asset securitization provisions
Requirement guidelines issued
Rollovers and Continuing Contracts to Reduce
Daylight Overdraft Exposure, announcement
on issuance of policy statement
Rosine, John, article
Rude, Christopher, reports
Rules
Procedure
Update of citations to statutory and regulatory
provisions, amendment
636
370
443
631,636
73
150, 443
368
65
280, 349
423
667
147, 156
567
1
259
701
98
Federal Reserve Bulletin • December 1989
Page
Rules-Continued
Regarding delegation of authority
Director interlocks granted to Federal Reserve Banks,
decision
S. 909, statement regarding legislation
550,
Second Banking Directive
Second Life Insurance Directive
Second Nonlife Insurance Directive
Securities (See also specific types), asset-backed, article
Securities and Exchange Commission
International securities markets, statement
U.S. bank lending to developing countries, statement
Securities markets, internationalization of, statement
Seger, Martha R.
Basic Banking Services Access Act of 1989, H.R. 3181,
statement
Government Check Cashing Act of 1989, H.R. 3180,
statement
Legislation relating to the Community Reinvestment
Act, the Government Check Cashing Act of 1989,
and the Basic Banking Services Access
Act of 1989, statement
Truth in Savings Act, H.R. 736, statement
Senior Loan Officer Opinion Survey of Bank
Lending Practices
Single European Act
Small, David H.
Article
Staff study
Snyder, Barry R., Assistant Inspector General,
Office of Inspector General, appointment
Social security benefits, direct deposit, disclosure
requirements, announcement
Staff studies
Adequacy and consistency of margin requirements in the
markets for stocks and derivative products
M2 per unit of potential GNP as an anchor
for the price level
State member bank public information access
State member banks
Capital adequacy guidelines, risk-based measure
Compliance with federal laws prohibiting discrimination
in mortgage lending, statement
Statement to National Economic Commission, federal deficit
(Chairman Greenspan)
Statements to Congress (including reports and letters)
Bank supervisory policies regarding U.S. bank
lending to developing countries
(William Taylor, Director, Division of Banking
Supervision and Regulation)
Banking system and debt-servicing difficulties
(Vice Chairman Johnson)
Basic Banking Services Access Act of 1989
(Governor Seger)
Brokered deposits use by financial institutions
(Governor Heller)
Community Reinvestment Act, enforcement (Griffith L.
Garwood, Director, Division of Consumer
and Community Affairs)
Corporate restructuring activity, recent trends
(Chairman Greenspan)
Corporate restructuring and the federal budget deficit
(Chairman Greenspan)
Current economic situation (Chairman Greenspan)
Economic policy objectives (Chairman Greenspan)
European Community, internal market, implications for
U.S. financial institutions (Vice Chairman Johnson)
Federal Reserve Reform Act of 1989
(Chairman Greenspan)
Federal Reserve System's budget for 1989
(Governors Angell and Kelley)
380
551
598
599
599
659
562
564
557
786
786
550
493
464
594
244
263
288
352
610
263
287
157
790
15
563
136
786
495
619
142
267
138
282
744
796
677
Page
Statements to Congress—Continued
Flood insurance enforcement by the Federal Reserve
System (Glenn E. Loney, Assistant Director,
Division of Consumer and Community Affairs)
498
Government Check Cashing Act of 1989
(Governor Seger)
786
Internationalization of securities markets
(Chairman Greenspan)
557
Legislation relating to the Community Reinvestment Act,
die Government Check Cashing Act of 1989,
and the Basic Banking Services Access Act
of 1989 (Governor Seger)
550
Monetary policy (Chairman Greenspan)
272,614
Mortgage lending, antidiscrimination compliance by
state member banks (Governor LaWare)
790
Office of Inspector General, establishment and
operation (Brent L. Bowen, Inspector General,
Board of Governors)
684
State of the bank insurance fund and adequacy
of the supervisory framework for banking institutions
(Vice Chairman Johnson)
738
Thrift industry, reform and recovery
(Chairman Greenspan)
278, 347
Treasury Department report on U.S. international
economic and exchange rate policy
(Vice Chairman Johnson)
810
Truth in Savings Act, H.R. 736 (Governor Seger)
493
U.S. banking system, condition (Vice Chairman Johnson) . 803
Zero-Inflation Resolution (Chairman Greenspan)
796
Statistical releases, available through computerized
bulletin board, announcement
288
Stock market credit, over-the-counter stocks (See
Over-the-counter stocks, list of marginable; and
Regulations: G, T, U, and X)
Stockwell, Eleanor J., Associate Director,
Division of Research and Statistics, retirement
19
Stockton, David J., Associate Director, Division
of Research and Statistics, promotion
751
Summers, Bruce J., Associate Director, Division of Federal
Reserve Bank Operations, appointment
152
Supplementary Financing Facility of the International
Monetary Fund
489
Survey of Terms of Bank Lending
464
TABLES (For index to tables published monthly, see guide
at top of page A88; for special tables published during
the year, see list on page A71.
Tandem operations restrictions, proposed action,
announcement
443
Tax Reform Act of 1986
Effect on securities
467
Home equity lending, article
334
Removal of federal income tax deductions for
interest paid on nonmortgage consumer credit
334
Taylor, William, statement
563
Testimony (See Statements to the Congress)
Thrift Institutions Advisory Council, members,
new appointments
148
Thrift institutions, reform and recovery, statements
278, 347
Tigert, Ricki R., Associate General Counsel, title change .... 152
Training, bank examiners, on flood insurance requirements .. 500
Transfers of funds
Fees (See Fees for Federal Reserve services to
depository institutions)
Regulation E (See Regulations: E)
Treasury and Federal Reserve foreign exchange
operations (See Foreign exchange operations)
Truman, EdwinM., article
727
Truth in Lending Act, Fair Credit and Charge Card
Disclosure Act, amendments
449
Truth in Lending, Regulation Z (See Regulations: Z)
Truth in Savings Act, H.R. 736, statement
493
Index to Volume 75
Page
U.S. banking system, condition, statement
803
U.S. Department of Agriculture
2
U.S. Department of Commerce
Computerized bulletin board
288
Drought estimates, article
1
International transactions, computers
328
U.S. Department of Justice
123
U.S. Department of the Treasury
150, 489
Exchange Stabilization Fund
61,262,489,674
Federal Reserve System
Budget
677
Foreign exchange operations
489
Operating income
150
Payments by the Federal Reserve System for 1988
150
U.S. international economic and
exchange rate policy, report
810
Uruguay Round of the General Agreement
on Tariffs and Trade
591
WALRAVEN, Nicholas, article
Warshawsky, Mark J., staff study
Weintraub, Cathy, report
Welch, Patricia A., Assistant Director, Division of
Applications Development and Statistical
Services, resignation
Whitehouse, Michael A., article
Wisconsin state law,preemption determination
Wolfson, Martin H., article
Women's Business Ownership Act, Regulation B,
proposal to implement provisions
World Bank
ZERO-Inflation Resolution, H.J. Res. 409, statement
A99
Page
1
610
670
698
227
368
461
631
472
797
A100
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
George N. Hatsopoulos
Richard N. Cooper
Richard F. Syron
Robert W. Eisenmenger
NEW YORK*
10045
Cyrus R. Vance
Ellen V. Futter
Mary Ann Lambertsen
E. Gerald Corrigan
James H. Oltman
Buffalo
14240
John T. Keane
PHILADELPHIA
19105
Peter A. Benoliel
Gunnar E. Sarsten
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101
Charles W. Parry
John R. Miller
Owen B. Butler
James E. Haas
W. Lee Hoskins
William H. Hendricks
Hanne Merriman
Leroy T. Canoles, Jr.
Thomas R. Shelton
William E. Masters
Robert P. Black
Jimmie R. Monhollon
Bradley Currey, Jr.
Larry L. Prince
Nelda P. Stephenson
Hugh Brown
Jose L. Saumat
Patsy R. Williams
James A. Hefner
Robert P. Forrestal
Jack Guynn
Robert J. Day
Marcus Alexis
Richard T. Lindgren
Silas Keehn
Daniel M. Doyle
Robert L. Virgil, Jr.
H. Edwin Trusheim
L. Dickson Flake
Thomas A. Alvey
Seymour B. Johnson
Thomas C. Melzer
James R. Bowen
Michael W. Wright
John A. Rollwagen
John F. Gardner
Gary H. Stern
Thomas E. Gainor
Fred W. Lyons, Jr.
Burton A. Dole, Jr.
James C. Wilson
Patience S. Latting
Kenneth L. Morrison
Roger Guffey
Henry R. Czerwinski
Bobby R. Inman
Hugh G. Robinson
Diana S. Natalicio
Andrew L. Jefferson, Jr.
Lawrence E. Jenkins
Robert H. Boykin
William H.Wallace
Robert F. Erburu
Carolyn S. Chambers
Yvonne B. Burke
Paul E. Bragdon
Don M. Wheeler
Carol A. Nygren
Robert T. Parry
Carl E. Powell
Cincinnati
Pittsburgh
45201
15230
RICHMOND*
23219
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30303
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75222
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Vice President
in charge of branch
Charles A. Cerino1
Harold J. Swart1
Robert D. McTeer, Jr.1
Albert D. Tinkelenberg1
John G. Stoides1
Donald E. Nelson
Fred R. Herr1
James D. Hawkins1
James T. Curry III
Melvin K. Purcell
Robert J. Musso
Roby L. Sloan1
John F. Breen1
Howard Wells
Ray Laurence
Leonard W. Fernelius1
(Acting)
Kent M. Scott
David J. France
Harold L. Shewmaker
Tony J. Salvaggio1
Sammie C. Clay
Robert Smith, III1
Thomas H. Robertson
Thomas C. Warren2
Angelo S. Carella1
E. Ronald Liggett1
Gerald R. Kelly1
*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, N e w Jersey 07016;
Jericho, N e w York 11753; Utica at Oriskany, N e w York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
1. Senior Vice President.
http://fraser.stlouisfed.org/
2. Executive Vice President.
Federal Reserve Bank of St. Louis
A101
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
April 1984
ALASKA
©
i
ii
ii
i
i
i
A / p
SAN
LEGEND
Boundaries of Federal Reserve Districts
®
Federal Reserve Bank Cities
Boundaries of Federal Reserve Branch
Territories
*
Federal Reserve Branch Cities
Federal Reserve Bank Facility
Q
Board of Governors of the Federal Reserve
System
Publications of Interest
FEDERAL RESERVE
PUBLICATIONS
CONSUMER
CREDIT
The Federal Reserve Board publishes a series of
pamphlets covering individual credit laws and topics,
as pictured below. The series includes such subjects as
how the Equal Credit Opportunity Act protects women against discrimination in their credit dealings, how
to use a credit card, and how to resolve a billing error.
The Board also publishes the Consumer
Handbook
to Credit Protection Laws, a complete guide to consumer credit protections. This 44-page booklet explains how to use the credit laws to shop for credit,
apply for it, keep up credit ratings, and complain about
an unfair credit.
A Consumer's
Guide to
Mortgage
Lock-Ins
Three booklets on the mortgage process are also
available: A Consumer's Guide to Mortgage Refinancings, A Consumer's Guide to Mortgage Lock-Ins, and
A Consumer's Guide to Mortgage Settlement
Costs.
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.
Publications of Interest
NEW HANDBOOK AVAILABLE
REGULATORY
SERVICE
FROM THE
The Federal Reserve Board has announced publication of The Payment System Handbook. The new
handbook, which is part of the Federal Reserve Regulatory Service, deals with expedited funds availability, check collection, wire transfers, and risk-reduction policy. It includes Regulation CC (Availability of
Funds and Collection of Checks), Regulation J (Collection of Checks and Other Items and Wire Transfers
of Funds by Federal Reserve Banks), the Expedited
Funds Availability Act and related statutes, official
Board commentary on Regulation CC, and policy
statements on risk reduction in the payment system. In
addition, it contains detailed subject and citation indexes. It is published in loose-leaf binder form and is
updated monthly.
To promote public understanding of its regulatory
functions, the Board publishes the Federal
Reserve
Regulatory Service, a three-volume loose-leaf service
containing all Board regulations and related statutes,
interpretations, policy statements, rulings, and staff
opinions. For those with a more specialized interest in
the Board's regulations, parts of this service are published separately as handbooks pertaining to monetary
policy, securities credit, consumer affairs, and, available for the first time in September 1988, The Payment
System
Handbook.
For domestic subscribers, the annual rate for The
Payment System Handbook is $75. For subscribers
outside the United States, the price, including additional air mail costs, is $90. For the Federal Reserve
Regulatory Service, not including handbooks, the annual rate is $200 for domestic subscribers and $250 for
subscribers outside the United States. All subscription
requests must be accompanied by a check payable to
"Board of Governors of the Federal Reserve
System." Orders should be addressed to Publications
Services, Mail Stop 138, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
@FedFRASER