Full text of Federal Reserve Bulletin : December 1990
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VOLUME 7 6 •
NUMBER 12 •
DECEMBER 1 9 9 0
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
Graphics Center under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.
Table of Contents
985 THE TRANSMISSION CHANNELS OF
MONETARY POLICY: HOW HAVE
THEY CHANGED?
Over the past two decades, important structural changes in the economy—resulting
from institutional, regulatory, and technological developments—may have altered
the nature and stability of the channels
through which monetary policy affects the
level of economic activity in the short run.
To assess the scope and magnitude of possible structural changes in the economy that
may have affected the transmission channels of monetary policy, this article uses the
MPS model of the U.S. economy to examine whether the key links between monetary policy and economic activity appear to
have changed appreciably over the 1980s.
1009 THE CURRENT FISCAL SITUATION IN
STATE AND LOCAL
GOVERNMENTS
The fiscal position of state and local governments has deteriorated markedly during the
past several years, with many governments
confronting potential shortfalls in their operating accounts. This article describes the
accounts of the state and local sector, discusses the recent spending requirements
and revenue weaknesses that have precipitated the current budget woes, and gives a
brief perspective on the outlook.
1019 INDUSTRIAL
PRODUCTION
Industrial production increased 0.2 percent
in September after increases (revised) of 0.1
percent in August and 0.2 percent in July.
Industrial capacity utilization was unchanged in September at 83.6 percent.
1022 STATEMENTS
TO THE
CONGRESS
Alan Greenspan, Chairman, Board of Governors, discusses deposit insurance reform
and says that the Board believes it is important for the Congress to review options
other than reduced insurance coverage to
address the root cause of the taxpayer exposure and potential financial market distortions associated with our present deposit
insurance and supervisory approaches, before the Subcommittee on Commerce, Consumer, and Monetary Affairs of the House
Committee on Monetary Affairs, October 3,
1990.
1032 William Taylor, Staff Director, Division of
Banking Supervision and Regulation, Board
of Governors, testifies on the role of the
Federal Reserve in the supervision of foreign banks operating in the United States
and uses the actions taken by the Federal
Reserve to deal with the problems at the
Atlanta agency of Banca Nazionale del Lavoro to show how the Federal Reserve's
authority was used in a particular situation,
before the House Committee on Banking,
Finance and Urban Affairs, October 16,
1990.
1036
ANNOUNCEMENTS
Meeting of Consumer Advisory Council.
Schedules for 1991 for fees charged by the
Federal Reserve Banks now available.
Requirement for notification of "off-line
banks" of receipt of third-party funds on
Fed wire.
Revision of Subpart B of Regulation J governing funds transfers through Fedwire.
Proposed technical changes to the Board's
risk-based capital guidelines; extension of
period to receive comments on proposed
change to the pricing structure for the Federal Reserve's Interdistrict Transportation
Service.
Report, 1983 Survey of Consumer Finances: Design and Methods, now available.
1038 RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET COMMITTEE
At its meeting on August 21, 1990, the
Committee adopted a directive that called
for maintaining unchanged conditions of
reserve availability, at least initially, in the
intermeeting period ahead and that provided for giving emphasis to potential developments that might require some easing
during the intermeeting period. Accordingly, slightly greater reserve restraint
might be acceptable during the intermeeting
period, while some easing 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 somewhat faster nearterm growth in money than the members
had anticipated earlier, including growth in
M2 and M3 at annual rates of about 4 and
2V2 percent respectively over the threemonth period from June to September. The
intermeeting range for the federal funds rate
was left unchanged at 6 to 10 percent.
1045 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 26, 1990.
A3 Domestic Financial Statistics
A46 Domestic Nonfinancial Statistics
A55 International Statistics
All
GUIDE TO TABULAR PRESENTATION,
STATISTICAL RELEASES, AND
SPECIAL TABLES
A86 BOARD OF GOVERNORS AND STAFF
A88 FEDERAL OPEN MARKET
COMMITTEE AND STAFF; ADVISORY
COUNCILS
A90 FEDERAL RESERVE BOARD
PUBLICATIONS
A92 SCHEDULE OF RELEASE DATES FOR
PERIODIC RELEASES
A94 INDEX TO STATISTICAL TABLES
A96 INDEX TO VOLUME 76
A109 FEDERAL RESERVE BANKS,
BRANCHES, AND OFFICES
AI 11 MAP OF THE FEDERAL RESERVE
SYSTEM
The Transmission Channels of Monetary
Policy: How Have They Changed?
Eileen Mauskopf of the Board's Division of Research and Statistics prepared this article. The
author acknowledges the research assistance of
Sandra Cannon and the advice and assistance of
Flint Bray ton. Jeffrey Fuhrer and Peter Tinsley
wrote the appendix.
Over the past two decades, important structural
changes in the economy—resulting from institutional, regulatory, and technological developments—may have altered the nature and stability
of the channels through which monetary policy
affects the level of economic activity in the short
run. For example, the abandonment of fixed exchange rates in the early 1970s and the integration
of world capital markets have increased the scope
for monetary policy to affect a growing tradedgoods sector. The introduction of adjustable-rate
mortgages, the removal of regulatory ceilings on
deposit rates, and the development of secondary
mortgage markets may have altered the interest
sensitivity of residential construction activity.
The runup in corporate debt—a consequence of
the surge of takeovers and leveraged buyouts in
the 1980s—may have altered the response of
business capital spending plans to interest rates.
And the increased sensitivity to interest rates of
household interest income, owing to the removal
of deposit rate ceilings, and of household interest
payments, owing to the growing share of adjustable-rate financial liabilities, may have had some
bearing on consumption behavior. Such developments could greatly affect not only the ways in
which monetary policy influences the economy
but also the strength of its overall influence.
Assessing the scope and magnitude of possible
structural changes in the economy that may have
affected the transmission channels of monetary policy is a difficult task.1 The approach employed in
1. Other studies of the implications for monetary policy of
the changing structure of the U.S. economy include the
this article is to use the MPS model of the U.S.
economy to examine whether the key links between
monetary policy and economic activity appear to
have changed appreciably over the past decade. The
MPS model is a large-scale econometric model of
the United States that reflects mainstream macroeconomic theory and standard econometric practice. It was developed in the late 1960s in collaboration with university economists and has been
maintained and updated by the staff of the Federal
Reserve Board over the past twenty years.2
following: M.A. Akhtar and Ethan S. Harris, "Monetary
Policy Influence on the Economy—An Empirical Analysis,"
Quarterly Review, Federal Reserve Bank of New York, vol.
11 (Winter 1986-87), pp. 19-34; Barry Bosworth, "Institutional Change and the Efficacy of Monetary Policy," Brookings Papers on Economic Activity, 1:1989, pp. 77-110; Benjamin M. Friedman, "Changing Effects of Monetary Policy
on Real Economic Activity," Monetary Policy Issues in the
1990s (Federal Reserve Bank of Kansas City, August 30September 1, 1989), pp. 55-111; and George A. Kahn, "The
Changing Interest Sensitivity of the U.S. Economy," Economic Review, Federal Reserve Bank of Kansas City, vol. 74
(November 1989), pp. 13-34. In these studies, conclusions
are mixed, with some sectors found to be less sensitive to
interest rates over recent years and others to be more
sensitive. The papers by Friedman and Kahn, the only ones
that include an aggregate assessment, suggest that the net
effect of these changes to sectoral interest-rate sensitivities is
a reduced sensitivity of aggregate GNP to interest rates.
2. For a detailed description of the MPS model, see Flint
Brayton and Eileen Mauskopf, "The Federal Reserve
Board MPS quarterly econometric model of the US economy," Economic Modelling, vol. 3 (July 1985), pp. 170-292,
and "Structure and Uses of the MPS Quarterly Econometric Model of the United States," Federal Reserve Bulletin,
vol. 73 (February 1987), pp. 93-109. Probably the most
important difference between the theory embedded in the
MPS model and that espoused by one of the more popular
schools of macroeconomic theory since the 1970s is in the
modeling of expectations formation. In the MPS model,
expected values of future variables are generally assumed
to be based on past values of these variables. The alternative view—the rational expectations approach—argues that
economic agents are motivated to use all available information in forming expectations, including their knowledge of
the structure of the economy. Generally, the implementation of this approach sets expected values of future variables equal to the forecasts generated by the model in which
the expectations appear.
986 Federal Reserve Bulletin • December 1990
The approach taken here is not without its
shortcomings. Evidence that the equations in the
model have not remained constant over time
could reflect either structural changes in the
economy or some underlying misspecification of
the relationships in the equations. To make the
case for structural change rather than misspecification, we augment the results of standard
statistical tests with evidence that the properties
of the equation are consistent with accepted
economic theory and that observed shifts are
consistent with the specific hypotheses regarding
change. In addition, the simulation and forecasting properties of this model have been well
documented and thus provide some perspective
on the strengths and weaknesses of the model,
which aids in interpreting the tests undertaken
for structural change.
The first part of this article describes the three
main channels through which monetary policy
actions affect real spending in the model—the
cost of capital, the value of assets, and the
foreign exchange value of the dollar. Model
simulations quantify the relative importance of
each channel in the current structure of the
model, which is estimated using economic data
from the past thirty years.
The second and third sections examine, in
turn, the effect of monetary policy on financial
market variables and the influence of those variables on spending decisions. Specifically, the
second section examines whether the relationships underpinning the demand for money, the
term structure of interest rates, the value of
corporate stock, and the foreign exchange value
of the dollar changed appreciably over the 1980s.
The third section explores whether the manner in
which these financial variables affect consumption and investment has changed in the past ten
years. To study the question of structural
change, these sections present results of statistical tests aimed at identifying changes in the
relationship between economic variables. (For
an alternative approach to the issue of identifying
structural change, see the appendix.)
In the final section, simulations of two versions of the model are used to examine whether
the changes of the past decade have, on net,
raised or lowered the sensitivity of output to
changes in monetary policy. The two versions
represent the distinct responses of financial
markets and real spending that have been found
to be significantly different over the pre- and
post-1980 periods.
The main findings of the article are as follows:
The sensitivity of aggregate output to changes
in monetary policy is about the same now as it
was in the 1960s and 1970s, until about the third
or fourth year after a change in short-term
interest rates. After the first few years, the
interest sensitivity of aggregate output to a
change in short-term rates is smaller today than
it was in the earlier decades. The changes in the
response of aggregate output to changes in
interest rates mask some larger, but mostly
offsetting, changes in the responses of different
sectors. Both residential and nonresidential
construction are less sensitive to interest rates.
In residential construction, the reduction in
sensitivity reflects the absence of disintermediation-induced episodes of credit rationing (disruptions in the supply of credit that occurred
when funds dried up during periods of high
interest rates); it does not reflect any reduction
in the direct effect of interest rates on the
demand for housing. The traded goods sector
has become more responsive to changes in
interest rates because the exchange rate has
become more sensitive to the difference between U.S. and foreign interest rates. Monetary
policy affects consumption spending and investment in producers' durable equipment much the
same as before. In financial markets, long-term
interest rates appear to have responded more
quickly in the 1980s than they did before to
changes in short-term rates.
OVERVIEW OF MONETARY POLICY
TRANSMISSION
CHANNELS
In the MPS model, the structure of the monetary transmission mechanism draws on two
critical characteristics of the general "Keynesian" paradigm. First, changes in the supply of
real money balances affect spending only
through changes in interest rates. There is no
direct channel from a change in money balances
The Transmission Channels of Monetary Policy
1.
987
Effects o n spending of a reduction o f 1 percentage point in the federal funds rate, by spending category 1
Quarters
after
reduction
Investment
Residential
construction
Consumption
Business
fixed
Net exports
Total
2.7
7.8
15.3
27.6
43.2
51.6
Inventory
Billions of 1982 dollars
1.1
5.1
6.9
9.5
12.7
13.1
12
16
20
4.9
7.3
13.9
17.3
26.1
1.5
1.9
3.7
8.5
14.3
20.7
1.1
.9
.7
10.2
6.4
2.2
62.8
Percent of total effect
4
8
12
16
20
32
26
32
34
42
7
13
20
28
33
33
25
22
25
21
100
100
100
100
100
18
28
24
12
4
1. These results trace the effect of the changes in the federal funds rate
on financial markets and, through financial markets, on final demand
categories. Not included are multiplier-accelerator interactions or feedbacks
from goods markets to financial markets or prices. The initial conditions are
those of 1985:1. Details may not sum to totals because of rounding.
to spending. Second, these changes in interest
rates generally imply changes in real rates in the
short run because wage and price expectations
adjust only sluggishly. This article thus identifies the stance of monetary policy with movements in short-term interest rates—specifically
the overnight federal funds rate, which is commonly regarded to be controllable by Federal
Reserve actions.
In the MPS model, changes in the central
bank's monetary stance affect spending and
output directly through three primary channels:
the influence of the cost of borrowed funds on
business and household investment decisions;
the influence of the value of wealth on consumption; and the influence of the exchange
rate on the volume of imports and exports.
Although these channels are not independent of
one another, the direct quantitative importance
of each can be gauged by tracing the effects of a
1 percentage point reduction in the federal
funds rate on spending when each channel
operates alone (tables 1 and 2). To emphasize
the interest sensitivity of each component of
2.
Effects o n spending o f a reduction o f 1 percentage point in the federal funds rate, by transmission channel 1
Cost of capital
Quarters after reduction
Investment2
Wealth
Exchange rate
Consumption
Net exports
Total
Consumption
Total
Billions of 1982 dollars
4
8
12
16
20
7.7
12.5
19.1
27.9
34.5
2.8
1.3
.6
.5
.2
10.5
13.8
19.7
28.4
34.7
2.1
6.0
13.3
16.8
25.9
2.7
7.8
10.2
6.4
2.2
15.3
27.6
43.2
51.6
62.8
Percent of total effect
4
8
12
16
20
50
45
45
55
55
18
5
1
1
*
68
50
46
56
55
14
22
31
33
41
18
28
24
12
4
100
100
100
100
100
55
28
17
100
MEMO
Average percentage
1. See note to table 1.
2. Includes residential construction, business fixed investment, and inven-
tory investment. See table 1 for details.
* Less than 0.5 percent.
988 Federal Reserve Bulletin • December 1990
spending, no feedback is allowed from one
sector's spending to another sector's spending.
In addition, wages and prices are held fixed so
that the change in the federal funds rate is a
change of the same magnitude in the real rate of
interest.
The influence of the federal funds rate on the
cost of capital and through the cost of capital on
consumption and investment is the largest of
the three channels and accounts, on average,
for about 55 percent of the total direct effect.
The cost of capital is a measure of the rate of
return on an investment that is necessary to
cover the costs of financing, depreciation, and
taxes. Financing costs, in turn, consist of the
interest paid on bank loans or marketable debt
and the costs of raising funds in the equity
market. In some instances, such as inventory
investment, spending behavior appears to be
sensitive to movements in short-term interest
rates. For longer-lived investment, such as business fixed investment or residential construction, long-term interest rates are more relevant
to the investment decision.
Variations in the cost of capital alter the
desired proportions of capital and labor in production, the desired stock of housing relative to
income, and the desired stock of consumer
durables relative to income. A decline in the
cost of capital increases the desired stock of
capital, and spending consequently increases
relative to a baseline of higher interest rates—
initially to obtain the additional capital and then
to offset the depreciation on the larger stock of
capital. The cost of capital has its largest effects
on business fixed investment and residential
construction activity. The pattern of cost-ofcapital effects over time reflects the lag between
a change in the federal funds rate and changes
in long-term interest rates and also between
changes in these interest rates and changes in
investment.
In terms of the direct effect over five years, a
change in the stock of wealth is next in importance in transmitting changes in the federal
funds rate to changes in spending: It contributes
on average 28 percent of the total direct effects.
In the MPS model, a change in wealth directly
affects only consumption spending. The timing
of the effect of changes in wealth on consumption shown in table 2 takes into account the lag
between changes in the federal funds rate and
changes in the corporate bond rate, the yield on
equity, and the price of land. 3
Finally, a decline in U.S. interest rates leads
to a depreciation of the dollar, which boosts net
exports as domestically produced goods become more competitive. This channel contributes, on average, 17 percent of the total direct
effects. The magnitude and the timing of the
response of net exports reflect the estimated lag
between changes in the exchange rate and
changes in import and export prices and between changes in these prices and changes in
the demand for imports and exports. The calculated contribution of this channel is based on
the assumption that foreign interest rates do not
respond to the decline in U.S. interest rates,
and thus it tends to overstate the exchange rate
influence should foreign monetary authorities
correspondingly reduce foreign interest rates.
Comparing the estimates in tables 1 and 2
with calculations DeLeeuw and Gramlich made
more than twenty years ago using an early
version of the MPS model provides an interesting historical perspective. 4 As they are in the
current structure of the model, the cost of
capital and the value of wealth were of greatest
importance for the transmission of monetary
policy. But the link between credit rationing
and residential construction, rather than variations in the exchange rate, was identified as the
third channel of transmission. This difference
3. Because equity and land values are the capitalized
values of the income flow expected from the respective
assets, the precise effect of a change in the federal funds rate
on wealth depends on the level from which the interest rate is
assumed to be reduced. For example, if the interest rate fell
from 5.0 percent to 4.0 percent, the market value of wealth
would rise 20 percent, given a sufficient length of time. If,
instead, the interest rate were 9.0 percent, the percentage
increase in wealth would be approximately 11 percent for the
same 1 percentage point reduction. In tables 1 and 2, the
federal funds rate averaged 7.7 percent in the base run so that
the effective decline in the interest rate in tables 1 and 2 is 13
percent.
4. Frank de Leeuw and Edward M. Gramlich, "The
Channels of Monetary Policy: A Further Report on the
Federal Reserve-MIT Econometric Model," Federal Reserve Bulletin, vol. 55 (June 1969), pp. 472-91.
The Transmission Channels of Monetary Policy
3.
989
Effects o f c h a n g e s in monetary policy o n selected e c o n o m i c variables'
Quarters after change
Variable
8
1
12
16
20
Partial model: Reduction of 1 percentage point in the federal funds rate
Real GNP (billions of dollars)
(percent)
Federal funds rate (percentage points)..
Corporate bond rate (percentage points)
Dividend-price ratio (percentage points)
Exchange rate (percent)
M2 (percent)
3.10
.10
-1.00
-.19
-.04
-1.80
.30
6.50
.20
-1.00
-.21
-.07
-1.90
.70
15.30
.40
-i.00
-.28
-.12
-2.30
1.40
27.60
.70
-1.00
-.38
-.17
-1.40
2.30
43.20
1.10
-1.00
-.68
-.31
-.70
1.90
51.60
1.30
-1.00
-.92
-.43
.30
1.30
62.80
1.50
-1.00
-.98
-.50
-.60
.70
Full model: Phased increase of 1.5 percent in level of M2
Real GNP (percent)
GNP implicit price deflator (percent) . .
Federal funds rate (percentage points)..
M2 (percent)
.10
.00
-.92
.25
.10
.00
-.43
.50
.40
.10
-.63
1.00
.90
.40
-.15
1.50
1.40
.90
.50
1.50
1.20
1.80
1.98
1.50
-.50
2.70
.71
1.50
1. The top panel corresponds to the simulation reported in tables 1 and 2, which does not allow for multiplier-accelerator interactions or feedbacks
from the goals market to financial markets and prices.
reflects some of the structural changes described at the beginning of this article. In the
1960s, variations in the exchange rate were
infrequent because exchange rates were, for the
most part, fixed under the Bretton Woods
agreement. And mortgage credit and, consequently, housing activity were at times constrained by the regulation of interest rates on
savings deposits and the absence of readily
available alternative sources of mortgage funds.
Although the results presented in tables 1 and
2 suggest that monetary policy exerts a powerful influence on real output, the simulation
exaggerates the actual influence on the sustainable level of real output because it abstracts
from two critical aspects of the economy. First,
the simulation holds wages and prices constant
and thus creates the impression that the supply
of labor and the production of output adjust
fully to the increase in demand generated by the
decline in interest rates. In fact, wages and
prices appear to be sufficiently flexible—albeit
with some lag—so that, as aggregate demand
increases and labor markets tighten, the burden
of the adjustment will shift to wages and prices.
In the long run, changes in the level of the
money stock cause changes only in the price
level and are neutral with respect to the level of
real production, which is constrained by the
quantities of labor and capital available, the
production technology, and the rate of technological progress.
A second, related simplification is the assumption that monetary policy can peg the rate of
interest for an extended period. An attempt to
conduct monetary policy by permanently lowering the nominal rate of interest could eventually
lead to an unstable path for real output and
prices. Lowering the nominal rate of interest
lowers real interest rates initially by a similar
amount and leads to an increase in output, a
reduction in unemployment, and an increase in
inflation. But this last effect further reduces real
interest rates and consequently raises output and
inflation further. By holding prices fixed, the
simulation reported in tables 1 and 2 hides the
potential instability created by a policy that pegs
nominal interest rates.
The lower panel of table 3 presents a simulation of the full model, which drops both of the
simplifying assumptions made earlier. 5 A comparison of the upper and lower panels illustrates
the transitory effects on real output of a change
5. In this simulation, monetary policy is characterized by a
phased increase in the level of M2 of IV2 percent, rather than
a once-and-for-all decrease in the federal funds rate. The
1 Vi percent increase in M2 is the average increase that results
under the assumptions made in the top panel about prices and
the federal funds rate.
990 Federal Reserve Bulletin • December 1990
in the stance of monetary policy when wages
and prices are allowed to respond fully. The
easing of the monetary stance stimulates demand pressures that cause a small rise in prices
within one year and larger increases subsequently. The simulated path of real output is
cyclical, but the effect on activity is negligible
in the long run.
THE LINK BETWEEN MONEY,
FINANCIAL
MARKETS, AND ASSET PRICES
In general, the equations of the MPS model
have been estimated under the assumption that,
aside from the absence after 1980 of creditrationing constraints on housing expenditures,
no significant shifts have occurred in economic
behavior over the estimation period of nearly
thirty years. By examining in more detail the
links among money, interest rates, and asset
values and applying statistical tests aimed at
identifying shifts in these relationships during
the past ten years, this section weighs the
validity of that assumption.
From Money to Short-Term
The Demand for Money
Interest
Rates:
A stable empirical relationship between money
and market interest rates has been difficult to
pin down since the early 1970s. In hindsight,
most of this instability can be accounted for
either by innovations in financial practices designed to raise the effective rate of return on
money balances or by the subsequent removal
of regulations that constrained the rate of return
on deposits. The creation of new depository
instruments further weakened the reliability of
the relation between money and interest rates.
The link between money and short-term interest rates is usually based on some theory of
the transactions demand for money. For a long
time, a simple model of the demand for money—popularized by William J. Baumol and
James Tobin and based on models of optimal
inventory behavior—was used in the MPS
model and many of the other large-scale macroeconomic models to describe the behavior of
Ml demand. The model tended to fit the data
quite well. According to this theory, the optimal
level of money balances was determined by
offsetting the interest forgone in the holding of
non-interest-bearing money, instead of interestbearing but less liquid assets, with the lower
transaction costs resulting from less frequent
switching between money and interest-bearing
assets. The specification led to an inverse relation between the short-term market rate of
interest and the quantity of money demanded,
and to a positive relation between the level of
nominal income and the quantity of money
demanded.
By 1974, the fit of these equations began to
deteriorate. The actual level of Ml (specifically,
the demand deposit component of Ml) fell far
short of the quantity predicted by the equation.
It is now clear that the shortfall in money
growth was related to various innovations in
financial markets, some designed to reduce the
transactions costs of switching between money
and an interest-bearing asset and others to
reduce the variance and uncertainty of cash
flow. The introduction and growing use of many
of these techniques (for example, overdraft
accounts, repurchase agreements, and remote
disbursement of checks) was apparently related
to the spread of computer technology in the
banking industry starting in the mid-1970s.
These innovations ultimately reduced the demand for the traditional medium of exchange.
(For more information on this subject and others discussed in this article, see the selected
reading list at the end of the article.)
At the same time, changes in regulations
expanded the range of instruments that could
serve as a medium of exchange, one of the more
far-reaching of which was an interest-bearing
checkable account for households, state and
local governments, and nonprofit institutions.
The increasing use of these accounts led the
Federal Reserve in 1980 to distinguish Ml,
naming it MIA, from a slightly broader aggregate, M1B, which included these other checkable deposits (OCDs). Although the aim in
creating M1B (now referred to as Ml) was to
construct an aggregate with a predictable and
stable relationship to income and interest rates,
the empirical stability of M1B was short-lived.
The Transmission Channels of Monetary Policy
The demand deposit component of M1B became increasingly difficult to explain. Moreover, the emergence of two instruments that
were close substitutes for the OCD component
of M1B—money market mutual funds in the late
1970s and money market deposit accounts in
1982—argued for emphasizing a larger aggregate that encompassed them. Thus, over the
past several years, attention has shifted to M2,
where some success has been achieved in modeling aggregate M2 as a function of nominal
income or consumption and the opportunity
cost, defined as the excess of market rates of
interest over the rates paid on M2 components.
Because most M2 components bear interest
rates that respond gradually to the return on
market instruments such as Treasury bills, M2
is more responsive in the short run than in the
long run to movements in market interest rates.
Modeling the sluggish behavior of M2 rates
appears to be important in specifying a stable
equation for M2 demand.
The behavior of the monetary aggregates
since the mid-1970s points to changes in and
greater uncertainty about the relations between
money and income and between money and the
rate of interest. It thus has reduced the indicator value of money in gauging the present state
of the economy and diminished the usefulness
of money as an intermediate target in the presence of uncertainties about the economy. 6
From the perspective of the model, however,
uncertainty about the demand for money is of
limited practical import. The monetary authority remains capable of influencing output in the
short run as long as it can directly influence the
short-term interest rate. The instability of the
money demand function just makes more difficult the task of estimating the change in the
monetary aggregate that would accompany any
given change in the short-term interest rate.
6. Nevertheless, empirical evidence of a stable long-run
relationship between M2 and nominal GNP supports a role
for M2 as a nominal anchor for monetary policy. See Jeffrey
J. Hallman, Richard D. Porter, and David H. Small, M2 per
Unit of Potential GNP as an Anchor for the Price Level, Staff
Studies 157 (Board of Governors of the Federal Reserve
System, 1989).
From Short-Term
Rates: The Term
to Long-Term
Structure
991
Interest
In the model, short-term interest rates—for example, the commercial paper rate—are important
in explaining inventory behavior and expenditures on consumer durables. They are less important in explaining residential construction and
business fixed investment, which are assumed to
be more sensitive to longer-term rates of interest.
Long-term interest rates are also important in the
transmission process because of their role in
explaining variations in wealth, itself a key determinant of consumption.
A standard view of the determination of longterm interest rates is that arbitrage between
short-term and long-term debt instruments
should equalize expected returns over common
holding periods, except possibly for risk premiums. This view implies that the yield on a
long-term asset, such as a corporate bond,
should be a weighted average of the current and
expected future short-term rates over the life of
the asset. In the MPS equation, the determinants of the expected path of future short-term
interest rates are assumed to be past values of
the commercial paper rate and of the inflation
rate. This specification, based on the work of
Franco Modigliani and Robert J. Shiller, assumes that changes in the commercial paper
rate ultimately are reflected in entirety in
changes in the bond rate and changes in the
inflation rate have only a transitory effect on the
bond rate. 7 The pattern of lag coefficients is
permitted to vary with the level of recent shortterm rates to reflect the dependence of the
duration of coupon bonds, such as corporate
bonds, on the interest rate. 8
7. Franco Modigliani and Robert J. Shiller, "Inflation,
Rational Expectations and the Term Structure of Interest
Rates," Economica, vol. 40 (February 1973), pp. 12-43. Of
course, long-term interest rates do respond permanently to
changes in the inflation rate to the extent that changes in the
inflation rate are reflected in the commercial paper rate.
8. The higher the current short-term rate, the greater is the
contribution of near-term coupon payments to the present
value of the bond, and thus the shorter the duration of the
bond. The hypothesis is that the duration of a bond will
influence the manner in which past values of interest rates
affect expected values. Specifically, for a bond of long
duration, the behavior of interest rates over a long period of
992
4.
Federal Reserve Bulletin • December 1990
Tests for structural stability in MPS equations
Probability of
no structural
change1
Nature of change in interest rate sensitivity
.02
< .01
. . .
Faster passthrough of changes in short-term interest rate.
Slower passthrough of changes in long-term interest rate.
Greater sensitivity to short-term interest rate based on other evidence.
.99
.44
No significant change in cost-of-capital sensitivity of desired stock,
but reduction in overall interest sensitivity of construction.
6. Nonresidential construction: All variables
7. Producers' durable equipment: All variables
8. Nondurable consumption: Wealth and property income....
<.01
.03
.72
Reduction in cost-of-capital sensitivity after 1985.
No change in cost-of-capital sensitivity according to other evidence.
No significant change.
9. Consumer purchases of motor vehicles: Cost of capital
10. Consumer purchases of motor vehicles: Cost of capital and
intercept
.86
No significant change.
.23
No significant change.
11. Other consumer durable purchases: Cost of capital
12. Other consumer durable purchases: Cost of capital and
intercept
.63
No significant change.
.64
No significant change.
13. Nondurable inventory investment: Cost of capital
14. Retail durable inventory investment: Cost of capital
15. Nonretail durable inventory investment: Cost of capital . . .
.58
.90
.16
No significant change.
No significant change.
Slight increase in sensitivity, but hypothesis of no change
acceptable at usual significance levels.
Equation and component tested for change
1. Corporate bond rate: Interest rate
2. Dividend-price ratio: Interest rate
3. Exchange rate
4. Residential construction: Cost of capital
5. Residential construction: Cost of capital and intercept
1. Based on standard F test. The tests are done by estimating each equation over the full sample period, which usually begins in the 1960s and extends
through 1988:4. The same equation is estimated a second time, now allowing
the coefficients in question to differ pre- and post-1980. The residuals from
the first and second estimations are compared. The smaller the residuals
from the second regression relative to those from the first-corrected for the
number of coefficients permitted to change-the less probable is the hypothesis that there has been no structural change. The usual convention in statistical work of this sort is to accept the hypothesis of no change if the F statistic
is 5 percent or greater.
The institutional changes noted earlier—in
foreign exchange markets, in housing finance,
and in household and corporate balance
sheets—did not in themselves necessitate any
change in the behavior of the corporate bond
rate in the 1980s. Nevertheless, the relation
between the bond rate and its determinants may
have changed because the assumptions underlying the formation of expectations of future
short-term interest rates—that they are based
on past short-term interest rates and inflation
rates—might not be appropriate in all circumstances. A popular alternative view of the expectations process—particularly compelling in
the description of financial markets—emphasizes the forward-looking nature of expectations, in which informed judgments about the
future course of events are based on knowledge
of the structure of the economy, including the
process whereby economic policy is formed.
Although such "rational" expectations may at
times be consistent with using past values of a
particular variable to forecast its future values,
the conditions under which this procedure is
optimal are relatively restrictive.
The MPS equation for the corporate bond rate
is subjected to a standard statistical test to determine whether the relation between the corporate
bond rate and past short-term interest rates has
remained constant over time. This test allows the
pattern of coefficients on the paper rate to vary
between the 1960s and 1970s as compared with
the 1980s but preserves the long-run properties of
the equation. Thus, changes in the commercial
paper rate are ultimately reflected in entirety in
the bond rate.
The result of this test suggests that the behavior of the bond rate in relation to its determinants
has changed over the 1980s and that the change
has been in the direction of shortening the lag
between changes in the short-term interest rate
and changes in the bond rate (table 4, line 1). In
the 1960s and 1970s, a rise of 1 percentage point
in the commercial paper rate raises the bond rate
by 0.21 percentage point in the same quarter and
by 0.36 percentage point within one year; in the
1980s, the corresponding responses are 0.32 per-
history is important in forming expectations about future
rates; for a bond of shorter duration, the more recent pattern
of interest rates is important for the formation of expectations.
The Transmission Channels of Monetary Policy
centage point in the same quarter and 0.46 within
the year. 9 These results are consistent with the
hypothesis that investors believe the current
short-term rate to be a better predictor of future
short-term rates than it was earlier and therefore
link the long-term rate to the current short-term
rate more quickly than previously. Although the
faster passthrough of a change in the short-term
rate to a change in the long-term rate is significant statistically, the change is too small to have
much effect on output in the short run.
From Long-Term Interest
Return on Equity
Rates to the
The relation between the return on equity and
the return on debt also is based on the assumption that arbitrage equalizes the expected real
rates of return on the two, apart from a possible
risk premium. Arbitrage implies that the price
of equity is based on investors' expectations
about the stream of future dividends payable to
shareholders and on the rate of return to investments that are alternatives to equity.
In the MPS equation, the real rate of return
on equity is represented by the dividend-price
ratio, and the expected real rate of return on
long-term debt is represented by recent rates of
return on corporate bonds less the inflation rate
averaged over a long period. 10 A priori, the
estimated coefficients on the bond rate should
sum to 1.0, and the estimated coefficients on the
inflation rate should sum to - 1 . 0 , so that a rise
in the nominal interest rate due to an increase in
the rate of inflation is correctly perceived to
9. Because the distributed lag weights on the commercial
paper rate are a function of the level of recent commercial
paper rates, an assumption must be made about the level of
the paper rate in order to compute the distributed lag weights.
We assumed that the commercial paper rate averaged 10
percent in both subperiods. The exact relation between the
distributed lag weights and the level of the commercial paper
rate appears, however, to have changed between the two
subperiods.
10. The earnings-price ratio is commonly used as a measure of the real rate of return on equity. Because it is highly
cyclical, it is probably not a good measure of the long-run
expected return on equity. The dividend-price ratio is far less
cyclical. Thus, the equation uses the product of the dividendprice ratio with an estimated inverse of the average payout
ratio as a proxy for the long-run earnings-price ratio.
993
leave the real rate of return on bonds unchanged.
The estimated coefficients in the current version of the equation satisfy these a priori values. 11 However, the current version was estimated using data only through 1973, and
extensions of the estimation period through the
1970s or 1980s result in very different estimates
for the coefficients on the inflation rate. As
Franco Modigliani and Richard A. Cohn first
noted, the coefficient sum on the inflation rate
falls dramatically over longer sample periods
and is not statistically different from zero. 12
Thus, equations estimated through the 1970s or
1980s that show the sum of coefficients on the
bond rate remaining close to 1.0 suggest that
investors equate the real return on equity with
the nominal return on debt. 13
The test for structural shift is reported with
the caveat that there is some risk of mistaking
structural change for misspecification in this
case because the estimated equation over the
extended period does not appear to be consistent with rational behavior (see table 4, line 2).14
The test results suggest rejecting the hypothesis
that, at standard statistical significance levels,
the response of the return on equity to changes
in the bond rate is the same in the 1980s as it
was in the 1960s and 1970s. Although the estimated coefficient sums on the bond rate are
11. Freely estimated through 1973, the coefficient sum on
the bond rate is not statistically different from 1.0; thus it is
constrained to 1.0 in the version of this equation used in the
MPS model. With this constraint, the coefficient sum on the
inflation rate is estimated to be -0.89.
12. Franco Modigliani and Richard A. Cohn, "Inflation,
Rational Valuation, and the Market," Financial Analysts
Journal, vol. 35 (March/April 1979), pp. 24-44.
13. Over the estimation period 1963:2-1988:4, the coefficient sum on the bond rate is 0.74 and the sum on the inflation
rate is 0.15. Over the period ending in 1979:4, these sums are
0.95 and 0.28 respectively; over the 1980s, these sums are
1.08 and -0.14 respectively.
14. Attempts to improve the properties of the equation
have been unsuccessful. For instance, when we try different
proxies for expected inflation, the estimated long-run coefficient on expected inflation is statistically different from minus
one and is often not statistically different from zero. If the
long-run coefficient is constrained to minus one, the equation
produces large errors. Although the possibility exists that our
specification of the risk premium is incorrect, that possibility
is unlikely to explain why the inflation coefficient, when
freely estimated, is close to zero.
994
Federal Reserve Bulletin • December 1990
similar across periods, the individual coefficients indicate some slowing in the response of
the dividend-price ratio to the bond rate over
the 1980s. For the 1980s, the contemporaneous
coefficient on the bond rate is 0.38, compared
with 0.52 for the estimation period ending in
1979.15 Other things being equal, this result
would reduce the effect of monetary policy in
the very short run. However, as was true for
the behavior of the corporate bond rate, the size
of the change is such that its effect on spending
would be negligible in the short run. And the
overall response suggests that changes in bond
rates continue to influence the return in the
equity market in a critical way.
From Interest Rates to Exchange
Rates
Models of the determination of the exchange
rate unfortunately have not been particularly
successful in explaining movements of exchange rates since the floating of the dollar
in 1973. Equations that fit well over some
estimation period often perform poorly over
the postestimation period. Given the rapid
change in the integration of international capital
markets, this lack of success may not be surprising.
In the MPS model, the determination of exchange rates is based on the portfolio balance
theory. According to this theory, demands of
investors for assets denominated in different
currencies depend, aside from possible risk
premiums, on differences in expected returns.
Comparing returns on such assets requires that
one of the assets be converted to the currency
of the other. Thus, to compare dollar- and
yen-denominated assets, for example, an investor must know the rates of return offered on
each and must have some expectation of the
change in the dollar-yen exchange rate over the
holding period. In the special case in which
15. In another test, which permits coefficients on all
explanatory variables to differ across the two subperiods,
there is an even sharper decline in the coefficient on the
contemporaneous value of the bond rate—from 0.78 in the
early period to 0.42 in the later period.
investors consider assets denominated in different currencies to be perfect substitutes, that
is, investors are indifferent to risk, expected
holding-period returns—converted to a common currency—are equalized.
The extent to which domestic monetary policy affects exchange rates—and through exchange rates, the volume of imports and exports—depends on how sensitive investors'
desired portfolio allocations are to the difference between expected holding-period yields.
The greater is the sensitivity of demands—that
is, the more perfect the substitution between
foreign and domestic assets—the greater will be
the change in the spot value of the domestic
currency for a given change in the domestic
interest rate, other things being equal.
To see this, consider what happens to the
demand for domestic currency in the foreign
exchange market after an increase in the
domestic interest rate. For given values of
foreign interest rates, exchange rates, and expected future exchange rates, domestic assets
are now more attractive than they were before
the rise in the domestic interest rate, and the
demand for assets denominated in the domestic
currency increases as holders of foreign assets
try to switch into domestic assets. But if
trade in goods and services is unresponsive in
the short run to movements in spot exchange
rates, the supply of domestic-currency assets
in the foreign exchange market does not increase,
and the prices of domestic currency in terms of
foreign currencies (exchange rates) must rise to
reestablish equilibrium in the foreign exchange
market. The more responsive asset demands are
to interest rate differentials, the greater will be the
initial increase in the demand for domestic currency and the larger the consequent appreciation
of domestic currency that is needed to equilibrate
demand and supply of foreign exchange. From the
perspective of asset holders, the appreciation of
the domestic currency sets up the expectation of a
future depreciation of domestic currency (because the expected level of exchange rates is so
far unchanged) and has the effect of raising the
expected return on foreign assets or, equivalent^, of reducing the expected return on domestic assets.
The Transmission Channels of Monetary Policy
The two equations in the MPS model explaining the U.S. demand for foreign assets and the
foreign demand for U.S. assets were estimated
using data through the mid-1970s and are fairly
conventional: Demands for assets are related to
the size of the economy, to the domestic interest rate, to a trade-weighted average of foreign
interest rates, and to various proxies for the
expected change in a trade-weighted average of
the foreign exchange value of the dollar. A
sense of the nature of any structural change can
be gained from examining the exchange rate
errors produced by these equations. 16 These
errors indicate a sizable underprediction of both
the level and the variability of the exchange rate
over the 1980s. The positive correlation of the
errors (defined as the actual exchange rate less
the predicted exchange rate) with the size of the
interest rate differential (defined as the domestic interest rate less the foreign interest rate)
suggests that the asset equations may understate the interest sensitivity of asset demands,
especially over the 1980s. One way of attempting to quantify the structural change is to raise
the coefficients in the asset demand equations
that represent the sensitivity of asset demands
to the interest differential by enough to eliminate the correlation between the exchange rate
errors and the interest differential. 17 The resulting coefficients on the interest rate differential
16. To derive the exchange rate errors made by the model
equations, the equations for asset demands are simulated
given historical values for the current account, asset holdings
(private and official), and interest rates. The simulated value
of the exchange rate is that which is consistent with equality
of the current account balance and the change in the net asset
position.
17. This section presents a change in method. Rather than
estimating the equations over the different subperiods and
applying the standard F test to confirm the significance of any
change, the prediction errors are analyzed to indicate the
nature of behavioral shifts. We make this change because of
the uncertainty about the reliability of the asset data, especially the breakdown of the net foreign asset position into
U.S. holdings of foreign assets and foreign holdings of U.S.
assets. When we simulate the two equations for asset demands, the errors tend to be offsetting so that the errors for
the net position or, consequently, the errors in the exchange
rate, are considerably smaller in percentage terms than those
of the individual asset demand equations. Under these circumstances, applying the standard F tests to the two asset
demand equations is unlikely to yield meaningful results.
995
are 60 percent larger over the 1980s than over
the 1970s. Thus, the sensitivity of exchange
rates to interest rates appears to have increased
significantly in the 1980s, a finding that is consistent with views that world capital markets
have become more closely integrated. For any
given change to the differential between U.S.
and foreign interest rates, the change to spot
exchange rates necessary to reequilibrate the
balance of payments is larger compared with
that in the 1970s.
THE LINK BETWEEN FINANCIAL
AND SPENDING
MARKETS
The efficacy of the monetary transmission
mechanism requires not only that short-term
interest rates influence long-term rates and asset prices but also that subsequent changes in
the returns on financial assets, in turn, influence
spending. Whereas the preceding section examined the behavior of financial markets and asset
prices and identified, among other things, an
increased interest sensitivity of the exchange
rate over recent years, this section examines
the relation between rates of return on financial
assets and spending. In so doing, it shows that
the sensitivity of spending to financial variables
appears to have decreased somewhat over recent years.
Residential
Construction
The component of aggregate demand most commonly perceived to have undergone major regulatory and structural changes over the past
decade is expenditure for residential construction. These changes are frequently cited as
having reduced the interest sensitivity of housing expenditure and, therefore, the likelihood
that this sector will bear a disproportionate
share of the effect on real spending of monetary
tightening. First, several innovations and regulatory changes have mitigated the tendency for
financial intermediaries to experience deposit
outflows during a period of high interest rates.
In 1978, six-month money market certificates
996
Federal Reserve Bulletin • December 1990
with rates tied to Treasury bill yields were
authorized; and in 1979, small-saver certificates
with no minimum denomination and with yields
based on Treasury securities were introduced.
Beginning in 1980 and continuing for several
years, a sequence of regulatory acts lowered
withdrawal penalties on time deposits and
phased out ceilings on deposit rates.
Along with these changes came the growth
in the market for mortgage-backed securities, whereby mortgage-originating institutions
pooled and resold their mortgages to third parties. As a share of residential mortgage debt
outstanding, mortgage pools backing securities
grew from 1 percent in 1970 to 12 percent in
1980 and to 35 percent in 1989.18 By broadening
the base of potential credit suppliers, the securitization of mortgages weakened the link between deposit growth at savings institutions and
the availability of new mortgages. This development, with the regulatory changes affecting
deposit rates, reduced nonprice constraints on
the supply of mortgage funds, which had been
associated with disintermediation at thrift institutions.
A third development in the mortgage market—the emergence and increased use of adjustable-rate mortgages (ARMs)—may have
further altered the sensitivity of expenditures
on residential construction to changes in interest rates. Two factors are often cited in support
of this argument. First, home buyers who might
have postponed purchases when they thought
fixed-rate mortgage terms were unusually high
relative to short-term interest rates would now
be less likely to do so because ARMs are
typically indexed to short-term interest rates. In
fact, this factor may have little effect on the
long-run interest sensitivity of housing demand,
although it may reduce the effect in the short
run. Second, compared with a fixed-rate mortgage, an ARM may offer a significant reduction
18. See Federal Reserve Bulletin, various issues, table 1.54
(Mortgage Debt Outstanding). These figures include the principal balances of mortgage pools backing securities that are
insured or guaranteed by the Government National Mortgage
Association, the Federal Home Loan Mortgage Corporation,
the Federal National Mortgage Association, and the Federal
Housing Administration, as well as the principal balances of
private pools.
in financing costs for those buyers whose intended holding period is relatively short, because of the common practices of offering an
initial-year discount and capping the size of
yearly changes permitted in the ARM rate.
Tests of the hypothesis that the interest sensitivity of housing demand has changed are carried
out with the MPS equation for residential construction. This equation relates the desired stock
of housing to a proxy for permanent income and
to the cost of capital for housing and explains
actual construction expenditures as adjusting
with some lag to the desired housing stock. 19
Estimates indicate that expenditures also depend
on the change in the unemployment rate and
have been constrained at various times by credit
rationing in the mortgage market. 20
The residential construction equation is reestimated so as to permit the intercept and the
sensitivity of the desired housing stock to the
cost of capital to differ between the 1960s and
1970s on the one hand and the 1980s on the
other hand. 21 Although the estimated coefficient
on the cost of capital is smaller over the 1980s
than over the previous two decades, the difference is not statistically significant (table 4, line
5).22
19. Changes in the overall sensitivity of this sector to
monetary policy also depend on changes in the behavior of
the mortgage rate. In the MPS model, the mortgage rate is
linked tightly to the corporate bond rate. As described in the
preceding section, the corporate bond rate appears to have
reflected changes in short-term interest rates more quickly in
the 1980s than in earlier decades. The same is therefore true
for the mortgage rate.
20. The effects of credit rationing on expenditures are
captured by a second-degree distributed lag on a dummy-shift
variable. The dummy-shift variable takes on a nonzero value
during periods when credit appears to have been constrained,
based on deposit flows at thrift institutions and on the
institutional and regulatory structure in place. The periods of
credit constraints are 1966:3-4, 1969:3-1970:3, and 1974:11975:1.
21. The intercept is permitted to differ in the two subperiods because the introduction of ARMs may have enlarged the
pool of potential home buyers besides possibly altering the
interest sensitivity of home buyers. The intercept would
capture the former effect.
22. The estimated coefficients indicate that an increase of 1
percentage point in the mortgage rate directly reduces residential construction expenditures 16 percent in the early
period and 9 percent in the later period, in each case within
one year of the initial rise in the rate. The difference is not
statistically significant. In a second test to detect change in
The Transmission Channels of Monetary Policy
1. Predicted and actual values for nonresidential
construction, equation estimated through 1979 1
Billions of 1982 dollars
contrast, the estimated response of residential
construction over the 1980s to the same change
in the cost of capital is about 9 percent. 24
Nonresidential
1965
1970
1975
1980
1985
1989
1. The autocorrelation component of the predicted values is set to zero
for the simulation.
Although the demand for housing appears to
have been no less sensitive to the cost of capital
over the 1980s, expenditures on residential construction may nevertheless have been less interest sensitive because disintermediation-induced
episodes of credit rationing were absent during
the 1980s. To quantify the total effect of interest
rates on housing expenditures—including that
occurring through credit rationing in the 1960s
and 1970s—the equation is reestimated without
the proxies for credit rationing, while the estimated intercepts and coefficients on the cost of
capital are still allowed to differ for the two
subperiods. Because of the positive association
between credit rationing and interest rates, the
estimated sensitivity to the cost of capital over
the earlier subperiod increases without these
proxies. When credit availability proxies are
excluded, the effect on housing expenditures in
the first year after a change of 1 percentage point
in the cost of capital (due, say, to a change of 1
percentage point in the after-tax mortgage rate)
increases from 16 percent to 21 percent. 23 By
the sensitivity of the desired housing stock to the cost of
capital (table 4, line 4), the intercept is constrained to be
unchanged over the entire period. The probability that the
response to the cost of capital is unchanged over the entire
period rises to 99 percent.
23. These calculations are an upper estimate of the importance of credit rationing for the overall interest sensitivity of
housing expenditures. When the equation is estimated allowing only the cost-of-capital coefficient to differ over the two
subperiods, the estimated coefficient on the cost of capital is
less sensitive to the presence or absence of an explicit
representation of disintermediation. However, because the
introduction of ARMs may have led to a shift in the intercept
(that is, to a larger pool of buyers), the specification that
997
Construction
Expenditures
Despite significant changes during the first half of
the 1980s both in the real rate of interest and in
aspects of the tax code pertaining to structures,
the MPS equation successfully explains construction spending through 1985.25 The form of
the equation follows the neoclassical theory of
investment, which is that capital is substitutable
to some degree for labor, so that the desired
capital intensity of production is inversely related to the cost of capital relative to the cost of
labor. The higher are the real financing costs—
either the rate of interest on debt or the rate of
return on equity—the lower will be the desired
stock of capital relative to output. In the current
version of the model equation, the long-run degree (or elasticity) of substitution is 0.5, so that a
1.0 percent change in the wage rate relative to the
cost of capital will change the long-run ratio of
capital to output by 0.5 percent. 26
A breakdown occurs after 1985 in the relation
between investment and its determinants; it is
highlighted by the plots in chart 1 of actual and
predicted values of construction expenditures
where the predicted values are based on an
allows the intercept to change between the two subperiods is
preferred.
24. Although the estimate of a 9 percent response is
obtained both when the credit proxies are included and when
they are excluded, no built-in constraint guaranteed this
result. Because the equation is estimated over the entire
sample period, all coefficient estimates could in practice be
sensitive to the inclusion or exclusion of the credit proxies.
For instance, eliminating the proxies for credit rationing
might have changed the estimated income elasticity of housing (depending on the correlation between credit rationing
and aggregate income) and this, in turn, might have affected
the estimated coefficient on the cost of capital (depending on
the correlation between income and the cost of capital) even
over the later subperiod.
25. The focus here is on the subset of construction spending that excludes expenditures on petroleum and mining,
which are modeled separately, and public utility investment
other than telephone and telegraph investment, which is
exogenous in the model.
26. The short- and intermediate-run elasticities depend on
the estimated lag structure. These estimates are such that
these elasticities tend to exceed their long-run values.
998
Federal Reserve Bulletin • December 1990
equation estimated through 1979. The estimated
equation captures the movements in construction
spending quite well through 1985. After 1985,
when construction spending stagnates, the predictive performance of the equation deteriorates,
and overprediction errors occur—of almost 18
percent in 1986 and of about 48 percent in 1988.
Tests for changes in the short- and intermediate-run interest sensitivity of construction are
not definitive when applied to this equation because the interest rate does not enter independently of output: The explanatory variables are
specified as the product of output and the capital-output ratio (which, in turn, depends on the
rate of interest). Thus, a test for possible structural shift since 1986 in the sensitivity of construction to interest rates cannot be performed
independently of a test for structural shift in the
sensitivity to output. Applying the conventional
test without distinguishing between shifts in
these sensitivities generates a probability less
than 1 percent that the response of nonresidential
construction expenditures to changes in output
or in the cost of capital is the same after 1985 as
before (table 4, line 6).27
The behavior of construction expenditures after 1985 suggests a reduced sensitivity to the cost
of capital and a faster adjustment to changes in
output. Two pieces of evidence support this
observation. First, for equations estimated
through 1985, the post-1985 prediction errors are
smallest when the relative cost of capital is held
constant at its 1985 value. Holding the relative
cost of capital constant is essentially equivalent
to assuming that capital and labor are not substitutes for one another in production. Second, to
explain the behavior of construction only over
the period from 1986 to 1989, one does best by
modeling investment as adjusting in proportion
to the change in output and as not responding at
all to changes in the relative cost of capital.
Moreover, if the 1986-89 estimated speed at
which investment adjusts to output is compared
with the pre-1986 estimate, one finds that the
27. If one tests for structural shift before and after 1980, as
we do for most cases, then the probability of no change in
adjustment speed is higher. But this finding reflects the
stability of the equation through 1985 and ignores the obvious
problem of the fit since 1986.
adjustment speed has increased although it may
be imprecisely estimated given the short estimation period.
Several reasons have been offered for the
apparent lessening of the importance of the cost
of capital for post-1985 investment behavior.
These reasons are based on a more eclectic view
of the determinants of investment than that inherent in the standard neoclassical approach.
One argument attributes the investment collapse
to high vacancy rates. High vacancy rates could
matter if, by signaling losses in the construction
industry, they provide information on expected
output or the cost of capital not captured by
simple distributed lags on these terms. However,
high vacancy rates do not provide a clear-cut
signal: Although they may suggest an untenable
position in the long run, they may not mean that
the owners of the buildings are losing money in
the short run. 28
Another explanation of investment behavior
after 1985 is associated with lending institutions'
eagerness through the middle of the decade to
support construction activity and their declining
interest in providing these funds more recently.
The pattern of errors from the model equation
does not support this explanation: Actual construction expenditures should have exceeded
predicted expenditures when funds were readily
available, but they did not. However, the absence of underprediction errors in the earlier part
of the 1980s could reflect offsetting errors in the
model specification. Similarly, because actual
construction during this period was not signifi-
28. For instance, the shorter lives for tax depreciation
introduced by the Economic Recovery Tax Act in 1981
reduced the cost of capital. In response, construction activity
increased. Unless the owner of the buiding lowered the rents,
the demand for space would not increase with the supply of
space. However, the consequent rise in vacancy rates and
reduction in aggregate rent per building would not mean that
the owner was then incurring a loss on the building: The
change in the tax law implies that the rent on the building that
is necessary to cover the costs would fall. The lower breakeven rent could be obtained by higher vacancy rates and
unchanged rent per unit occupied or by unchanged vacancy
rates and lower rent per unit occupied (or some combination
of the two). However, the boom in construction subsequently
set off a wave of rent reductions as each owner tried to find
clients for the vacant office space. Ultimately, the combination of lower rents per unit occupied and higher vacancy rates
reduced rents per building below break-even levels.
The Transmission Channels of Monetary Policy
999
Credit Rationing and the Transmission Channels
The discussion of the transmission channels of monetary
policy focuses on the link between interest rates, asset
prices, and real spending. The implicit assumption in the
MPS model, as in much macroeconomic literature, has
been that the financial system functions so efficiently that,
except for the occasional disturbance due to institutional
or regulatory factors-such as the episodes of disintermediation under Regulation Q-interactions between real and financial variables can be reduced and
simplified to interactions between real variables and interest
rates.
During the past decade, economists have influenced the
debate about the transmission mechanism by their attention to the issue of information and, in particular, to the
implications of imperfect information for the functioning
of the financial system. An important proposition of this
research is that using the interest rate to allocate credit
may not be optimal when creditors have imperfect or
incomplete information about debtors. This proposition
seems most relevant in explaining investment decisions and
suggests that for these decisions credit availability and cash
cantly stronger than predicted construction, the
equation errors also fail to support theories that
foreign money was more readily available or that
business sentiment was more bullish earlier in
the decade.
The standard view of investment spending—
that the parameters of the production process
along with the relative costs of capital and labor
determine the optimal capital stock—may be
basically correct. Even so, the poor performance
of the equation after 1985 may reflect misspecification in the cost of capital either because the
model does not use an appropriate proxy for
expectations of the real return on debt and equity
or because it does not accurately calculate the
effects of the change in the tax law. In any case,
the bottom line suggests either serious misspecification in the cost of capital or the presence of
some factor that reduced the apparent sensitivity
of construction spending to the cost of capital. If
the latter is true, this factor has not yet been
identified (see box).
Investment
Equipment
in Producers'
Durable
Outlays for capital equipment are typically considered one of the areas of spending most sensi
flow may be more important, and the cost of capital may
be less important, than the MPS model acknowledges. The
alleged retrenchment of bank loans vis-a-vis the demand
for business credit over the past year would fit this broadened view of the transmission mechanism. By emphasizing the role of financial variables other than interest rates,
this approach has rejuvenated the interest in the connection between real activity and financial intermediation central to the work of John Gurley and Edward Shaw in the
1950s and important in the work of Irving Fisher and John
Maynard Keynes in the 1930s (see the reading list at the
end of the article).
Despite the theoretical plausibility of these new arguments for a more general view of the monetary transmission mechanism, and despite a series of studies using data
from individual firms that have documented the importance
of non-interest-rate credit rationing, empirical support for
this view has yet to be found in the aggregate data. It is
not clear whether this lack of support is due to problems
of aggregation more severe than usual in applied work or
to the relatively idiosyncratic occurrence of such rationing.
tive to changes in interest rates. This belief
appears to rest on the notion that a high degree of
substitution between capital and labor is possible
in production. In the MPS equation for investment in equipment and machinery, the estimated
long-run elasticity of substitution is not significantly different from 1.0, so that a 1 percent
increase in the cost of capital relative to the cost
of labor ultimately leads to a 1 percent decline in
the ratio of equipment to output. In this regard,
the stock of equipment may be thought to be
more interest sensitive than is the stock of structures. Nevertheless, changes in interest rates
have a smaller effect on the cost of short-lived
capital, such as equipment, than they do on the
cost of long-lived capital. For instance, when the
life span of capital is five years (a 20 percent
depreciation rate), an increase in the real financing costs from 3 to 4 percentage points raises
the cost of capital from 23 percent to 24 percent.
By contrast, when the lifespan is twenty years (a
5 percent depreciation rate), the same rise in the
real financing costs raises the cost of capital from
8 percent to 9 percent—a much larger increase in
percentage terms.
The importance of the life span of capital in
determining capital's sensitivity to interest
rates has been cited as a potential source of
1000 Federal Reserve Bulletin • December 1990
change in the interest sensitivity of investment
because the growing share of equipment accounted for by computers and high-technology
equipment has reduced the expected life span of
this aggregate. In 1970, the depreciation rate for
the stock of equipment was 12.5 percent a year
(assuming an exponential pattern of depreciation); in 1990, it was over 15 percent a year.
Moreover, investment in computers may be
more sensitive to product cycles than to financing costs or to expected output. In contrast
to these factors, an increase in the interest
sensitivity of aggregate investment might be
expected if higher leverage ratios increased the
interest sensitivity of a firm's cash flow.
Neither of these developments lends itself to a
definitive test for changes in interest sensitivity,
given the specification of the MPS equation for
investment. In the first instance, the model ties
down a priori the long-run response of investment to a change in the real rate of interest: The
capital stock and, consequently, long-run investment rise by 1 percent for a 1 percent decline in
the cost of capital (based on an estimated elasticity of substitution equal to one); and the percentage decline in the cost of capital for a given
percentage decline in the rate of interest varies
inversely with the depreciation rate of capital.
Thus, as the life span of the aggregate capital
stock declines (the depreciation rate rises), the
elasticity of long-run investment with respect to
the rate of interest declines.29 Although the ap-
29. The more technical reader will want to distinguish
between the elasticity of long-run investment with respect to
the interest rate and the absolute change in long-run investment with respect to the interest rate—and, in particular, the
effect of a shortening lifespan for equipment on both of these.
In the long run, investment may be expressed as X(g+b)/
(r+8) where X is the level of output, g is the growth rate of
real output, 8 is the rate of depreciation of capital, and r is the
real rate of interest. In this expression, we assume that the
elasticity of substitution between capital and labor is unity, so
that X/(r+8) is the optimal capital stock. The interest elasticity of long-run investment equals the interest elasticity of the
optimal capital stock. This elasticity is negative but is less
negative the shorter the lifespan of capital is. By contrast, the
dollar response of long-run investment to a percentage point
increase in the interest rate is negative, but shortening the
lifespan of capital does not always reduce the size of this
effect. The response depends on the relations among the
growth rate of the economy, the real rate of interest, and the
rate of depreciation. The intuition is that although a rise in the
real rate of interest causes a smaller reduction in the stock of
propriateness of a long-run unitary elasticity of
substitution for computers in the production
process theoretically can be tested, it is not
tested because the technique used to estimate
this elasticity is imprecise and because the
estimate may be influenced by the high growth
rate of computer investment. The test for structural change thus allows only for a change in the
short- and intermediate-run sensitivity of investment to the rate of interest.
However, as was true for nonresidential structures, a test for structural change, based on the
MPS equation, cannot distinguish between
change in the short- and intermediate-run sensitivity to interest rates and change in the sensitivity to output. The test requires that the determinants of spending enter independently of one
another, a condition not satisfied by the equation
specification. Testing for a shift in the overall
response of investment to its determinants—the
cost of capital and output—suggests only a 3
percent probability that there has been no significant change (table 4, line 7).
Whereas the statistical evidence favors
change, other evidence suggests that the implied change is marginal, especially as it affects
the interest sensitivity of investment. First, the
post-1980 predictions from an equation estimated from 1961 through 1979 are almost identical to the predictions from an equation estimated from 1961 through 1987. Second, when
the equations for the two periods are simulated
after a change in interest rates, the patterns of
investment are similar. For a 1 percentage point
change in the interest rate, the maximum difference at any time between the two predicted
paths is $1 billion. That is, for approximately a
5 percent change in the desired capital stock at
current rates of interest and depreciation, the
maximum difference is about 8 percent of the
long-run response. Third, more sizable differences occur between the patterns of investment
short-lived capital than in the stock of long-lived capital,
replacement investment associated with a unit of short-lived
capital is greater than that associated with a unit of long-lived
capital. For normal ranges of real interest rates, growth rates,
and equipment depreciation rates, the response of investment
to a change in the interest rate declines as the life span of
equipment shortens.
The Transmission Channels of Monetary Policy
in response to a change in output. These three
results suggest that a shift in the response of
investment to output, rather than in the response to interest rates, explains the low statistical probability of an unchanged response of
investment to its determinants.
Consumption of Nondurable
and Services
Goods
Household expenditures for services and nondurable goods form the largest component of final
demand. Thus, any change in the sensitivity of
consumption to monetary policy will have important repercussions for the sensitivity of aggregate
output to interest rates.
One argument for a change in the interest
sensitivity of consumption is rooted in the idea
that, since the deregulation of deposit rates,
household interest income has been linked more
closely to movements in interest rates. If households make spending decisions based on current
income because, say, they are unable to borrow
against future income (that is, they are liquidity
constrained), greater interest sensitivity of income will induce greater interest sensitivity of
consumption (where a rise in rates causes a rise
in consumption). If spending depends on average income rather than on current income,
however, the increase in the interest sensitivity
of consumption will be more moderate.
Another argument for a changed interest sensitivity of consumption is that the growth in the
share of adjustable-rate mortgages and home
equity loans in mortgage debt raises the probability that households will incur liquidity problems when interest rates rise. In this case,
however, a rise in interest rates will reduce
consumption. An implicit assumption in this
scenario is that households with adjustable-rate
debt do not have rate-sensitive assets with
rising returns to offset the increase in debtservicing costs.
The MPS equation for consumption of nondurable goods and services was used to identify
changes in consumption behavior that might
reflect the aforementioned changes in the interest sensitivity of household cash flow. The
equation is based on the life-cycle model of
consumption—which assumes that households
1001
may borrow against future income and thus
consume in excess of current income and
wealth; still, the specification could support an
important role for liquidity constraints depending on the estimated coefficients on current
and recent income relative to those on more
distant income and wealth. Estimates for both
subperiods, while statistically significant for
current and recent income, suggest that distant
income and wealth are also important in determining consumption behavior. Thus, even if
household interest income or household interest payments are more interest sensitive now
than they were earlier, the quantitative effect on
the interest sensitivity of consumption may be
small.30
The influence of monetary policy on consumption can change also if the relation of
consumption to wealth and property income has
changed. These are the determinants of consumption most closely linked to changes in
interest rates. 31 In the estimation of the consumption equation, when the response to these
determinants is allowed to change, the data
strongly support the existence of a stable relation over time (table 4, line 8).
Given these findings—that the wealth channel
has been stable over time and that households
appear not to be unduly liquidity constrained—
any change in the relation between short-term
interest rates and consumption rests upon a
change in the effect that short-term rates have
on the market values of corporate equity and of
noncorporate land. (In the MPS model, the
market values of other components of household wealth—bonds, consumer durables, and
30. Even if households are liquidity constrained, the effect
on consumption of the incremental stock of adjustable-rate
debt (measured as the average stock of adjustable-rate debt
over the 1980s relative to that over the 1970s) is small. Under
the extreme assumption that debt-servicing costs are met one
for one by a reduction in consumption spending, the rise in
debt-servicing costs for a 1.0 percentage point rise in interest
rates is estimated to reduce consumption spending in the
1980s by 0.2 percentage point more than it did before 1980.
31. In the life-cycle model, the propensity to consume out
of income and wealth depends on the rate of interest. If the
relationship between the rate of interest and the propensity
to consume out of wealth is assumed to be linear, then
separate variables for property income (which is the product of the interest rate and the stock of wealth) and wealth
belong in the equation.
1002 Federal Reserve Bulletin • December 1990
housing—are not tied directly to changes in
interest rates.) But changes in the relation between short-term interest rates and corporate
equity are small because of offsetting changes in
the speeds at which short-term rates pass
through to long-term rates and at which longterm rates pass through to equity prices. Also,
changes in the relation between short-term interest rates and noncorporate land values are
quantitatively insignificant because of the slowness with which land values are estimated to
adjust to changes in interest rates.
Consumer
Durable
Expenditure
In the MPS model, the determinants of the
desired stock of consumer durables are income,
consumption of nondurable goods and services
(a proxy for permanent income), and the cost of
durable goods relative to that of nondurable
goods. The cost of a durable good takes into
account the financing and depreciation expenses associated with the use of the good and
is, in this sense, akin to the cost of business
capital. Variations in interest rates affect the
relative cost of consumer durables and therefore the demand for them. By measuring the
responsiveness of purchases of durable goods
to changes in the relative cost of durables, one
can determine whether or not this particular
channel for monetary policy has changed. 32 The
equations relating consumer purchases of motor vehicles and other durables were reestimated allowing the response to the relative cost
of durable goods to differ over the pre- and
post-1980 periods. The results strongly favor
the hypothesis that the response of purchases to
the cost of capital for consumer durables has
been stable over time (table 4, lines 9-12).
32. As was hypothesized for nondurable consumption, one
can argue that the effect of monetary policy on durables
purchases may have changed because income has become
more interest sensitive. To the extent that permanent income
is more important than current income in explaining durables
purchases, this effect is moderated.
Business
Inventory
Investment
As with consumer purchases of durables, monetary policy and inventory investment are directly
linked through the cost of capital. The higher are
the costs of financing inventories, the lower will
be the desired stock of inventories relative to
sales. In estimation, the sensitivity of the inventory-sales ratio to the cost of capital is generally
small but statistically significant. When the behavior of inventories is examined over the preand post-1980 periods, the response to variations
in the cost of capital generally appears to be
stable (table 4, lines 13-15). The estimated sensitivity of nonretail durable inventories to the
cost of capital has increased a bit, although the
increase is not statistically significant at the normal levels of significance.
THE NET EFFECT OF CHANGE IN THE
TRANSMISSION
CHANNELS
The preceding two sections have detailed the
particular changes in the interest rate sensitivity of asset prices and spending components
that have occurred since 1980. In this section,
the MPS model is used to quantify the net effect
on the economy of the changes found in the
response of asset prices to short-term interest
rates and in the response of spending to interest
rates and asset prices. Changes in the behavior
of financial markets and asset prices are most
notable in the increased sensitivity of exchange
rates to the differential between yields on domestic assets and those on foreign assets. The
short-run efficacy of monetary policy is diminished slightly by the slower passthrough of
changes in bond rates to the yield on equity, but
this diminution is largely offset by a faster
passthrough of changes in short-term rates to
long-term rates.
Significant changes to the interest sensitivity of
spending have occurred in residential and nonresidential construction expenditures. In both
cases, the interest sensitivity has fallen. Institutional and regulatory changes beginning in the
late 1970s have eliminated the episodes of credit
The Transmission Channels of Monetary Policy
5.
1003
Effects on spending of a reduction of 1 percentage point in the federal funds rate, by transmission channel1
Percent of total effect, except as noted
Quarters after reduction
Average2
Channel
4
8
Cost of capital
Pre-1980s
1980s
67
52
49
32
45
27
55
40
56
50
54
40
Wealth
Pre-1980s
1980s
12
12
20
15
27
19
31
25
40
42
26
23
Exchange rate
Pre-1980s
1980s
21
37
31
53
27
54
14
35
4
8
19
37
All channels (billions of dollars)
Pre-1980s
1980s
22.4
22.3
41.9
43.8
63.2
55.0
74.5
48.9
12
1. See note to table 1.
rationing that constrained housing construction
during times of high interest rates in the 1960s
and 1970s. No satisfactory explanation has been
offered for the apparent insensitivity of nonresidential construction to the cost of capital since
around 1986.
To quantify the net effect of these changes on
the ways in which monetary policy influences the
economy and to assess the overall effect, the
partial and full model simulations presented in
tables 1 and 2 are repeated. With the same
baseline, the simulations first use the equations
that best represent the pre-1980s behavior of
asset prices and spending and then use the equations that best represent post-1980s behavior.
The equations for asset prices and for spending
differ in the two versions of the model only when
their estimated sensitivity to interest rates has
changed significantly over time.33
16
20
81.5
50.5
2. Average of values at 4, 8, 12, 16, and 20 quarters.
Table 5 presents the effect on real spending in
the two versions of the model of a 1 percentage
point reduction in the federal funds rate, when
multiplier and accelerator feedbacks to spending, and output feedbacks to interest rates and
prices, are suppressed. As was done in tables 1
and 2, the separate contributions of the three
principal channels for monetary policy are
quantified.
The results suggest that the direct effects of
changes in the federal funds rate on real spending
are about the same before and after 1980 for the
first two to three years but are somewhat smaller
after 1980 during the fourth and fifth years. The
principal reason for the apparent reduction over
the 1980s in the direct effect of interest rates on
spending in the intermediate run is the absence of
credit rationing. Previously, the effect that credit
6.
Effects of a phased increase of 1.5 percent
in the level of M2: Full model
Percent
33. The two versions of the model differ in the following
ways: (1) The short-term interest rate affects the long-term
rate more quickly in the post-1980s version; (2) the bond rate
affects the return on equity more slowly in the post-1980s
version; (3) preferences for assets denominated in specific
currencies are more sensitive to interest rate differentials in
the post-1980s version; the foreign interest rate is exogenized
in both versions; (4) the sensitivity of residential construction
expenditures to the cost of capital is smaller in the post-1980s
version; and (5) nonresidential investment does not respond
to the cost of capital in the post-1980s version.
Quarters after monetary action
Level
4
8
12
16
20
Real GNP
Pre-1980s
1980s
.5
.5
1.0
1.2
1.2
.9
.5
.1
-.8
-1.0
GNP deflator
Pre-1980s
1980s
.1
.2
.5
.6
1.1
1.2
1.8
1.8
2.3
2.1
1004 Federal Reserve Bulletin • December 1990
rationing had on residential expenditure was
equated with a doubling of the sensitivity of the
desired housing stock to the cost of capital. That
is, in the first year after an increase of 1 percentage point in the mortgage rate, residential construction would decline about 9 percent after
1980 and about 21 percent before 1980. At 1990
levels of residential construction, this difference
is about $20 billion dollars, a sizable portion of
the difference in aggregate output generated by
the two versions of the model. Of secondary
importance to the diminished response to interest
rates is the failure of nonresidential construction
spending to respond to variations in the cost of
capital after 1985. Table 5 also highlights the
increase in the importance of the exchange rate
channel for the transmission of monetary policy
in the post-1980 world as represented by the MPS
model. The changes to the asset demand equations are such that the relative contribution of the
exchange rate channel has doubled on average
since 1980. The relative importance of the wealth
channel is about the same in the pre- and post19808 versions of the model.
Both versions of the model are simulated
again, allowing all sectors of the model to respond and assuming a phased increase of 1 Vi percent in the level of M2 (table 6). As in the partial
model simulations, the effects on real GNP are
similar in the two versions for the first few years.
But, in contrast with the direct effects on spending as demonstrated by the partial simulations of
table 5, the difference between the two versions
in the effect on aggregate output diminishes over
time because in both versions of the model
long-run output depends only on the production
technology and the supply of capital and labor. In
the long run, the level of money has no effect on
output.
APPENDIX: CONTINUOUS VERSUS
ONE-TIME CHANGES IN POLICY
TRANSMISSION
CHANNELS
Structural change, whether due to changing
markets, altered institutions, or technological
innovations, is difficult to capture in macroeconomic models. The approach discussed in the
body of this article is to test for one-time shifts
in coefficients of the MPS model. The assumptions of the one-time-shift analysis are that
selected coefficients of the model may have
shifted around 1980 and that these shifts will
persist indefinitely. 34
An alternative method of analyzing structural
change, outlined in this appendix, permits
model coefficients to vary continuously over
time. The time-varying-coefficient analysis employs the less-restrictive assumptions that the
timing of structural change is generally unpredictable and that structural change may be
intrinsically evolutionary, with some coefficients subject to continuous changes and others
to infrequent changes. This analysis assumes
also that coefficient changes may be partly
transient and may provide only partial predictions of future values of the model coefficients.
Under these more general assumptions, the
time-varying-coefficient analysis can provide
additional evidence on the following three issues regarding structural change. First, what
proportion of the total variation in variables
explained by model equations can be ascribed
to estimated changes in model coefficients, especially those coefficients associated with key
channels of policy transmission? Second, are
the estimated changes in model coefficients
larger in the 1980s than in earlier periods?
Third, to what extent are changes in model
coefficients persistent or transitory?
In brief, the results of the time-varying-coefficient analysis suggest the following:
1. The coefficients of several representative
policy-sensitive equations in the MPS model
have exhibited continuous movements over the
past three decades. These movements in coefficients are a significant source of the total variation of important economic aggregates.
34. One interpretation of a one-time shift in structural
coefficients is that it is a special case of random walk
coefficients in which all unpredictable changes in the coefficients are confined to a preselected historical interval. In
general, the timing of the shift will be unknown to the
modeler. A one-time-shift analysis will more reliably detect a
permanent shift if the preselected location of the estimated
break is close to the true break and there are sufficient
observations before and after the true break.
The Transmission Channels of Monetary Policy
2. Even though continuous change in the
model structure appears in all sample periods,
the movements in key policy channels are larger
in the 1980s. The sizable changes in the responses of the bond rate and a trade-weighted
exchange rate to movements in the short-term
interest rate in the 1980s support the focus in the
body of the article on more recent structural
changes.
3. The evidence does not support the simplifying assumptions that structural changes are
wholly permanent or that the unpredictable
changes are confined to a given historical interval. Unpredictable structural change occurs
throughout the postwar sample. Indeed, in the
1980s, the proportion of variation due to unpredictable structural changes has increased for
the effects of wealth on consumption and for the
effects of the short-term interest rate on the
bond rate and the exchange rate.
Why would one expect changes in economic
structure to be continuous? Traditional econometric models assume that coefficients are
fixed. In a macroeconomic context, fixed-coefficient models may be rationalized by the simplifying assumption that all economic agents are
identical. However, it is more likely that the
estimated coefficients of macroeconomic relationships are averages of the disparate responses of heterogeneous agents. For example,
the aggregate response of consumption to income is an average over all households of the
unique spending responses of each household.
The aggregate response may be expected to
vary over time because of changes in the crosssection distributions of household preferences
or incomes.
The traditional fixed-coefficient model assumes also that the only sources of structural
uncertainty are the intercepts of the estimated
equations. 35 To continue with the example of
35. An example of a fixed-coefficient equation is the
simplified Keynesian consumption function
Cft) = aft) + bY(t),
where consumption in period t, C(t), is a linear function of
a time-varying intercept, a(t), and the product of a fixed
slope coefficient, b, times the explanatory income variable,
Y(t). By contrast, a time-varying coefficient formulation of
1005
aggregate consumption, only the subsistence
level of consumption (represented by the intercept) is partially unpredictable under a standard
fixed-coefficient specification. By contrast, the
time-varying analysis allows the intercepts and
the coefficients of explanatory variables, such
as the slope multiplier of household income, to
vary both predictably and unpredictably over
time. 36 Predictable movements in the slope coefficients of explanatory variables are based on
the estimated persistence of past coefficient
changes and may include, as a special limiting
case, the one-time slope-coefficient shifts specified in the body of this article. Unpredictable
changes in slope coefficients, ruled out by assumption in fixed-coefficient analysis, provide a
measure of the reliability of the estimated effects of explanatory variables.
Table A.l presents data-based evidence on the
relative importance of continuous movements in
the estimated structure of four key macroeconomic relationships in the MPS model. In each
instance, the total variation of the dependent
variable (household consumption, residential construction, the corporate bond rate, and a multilat-
the Keynesian consumption function is
Cft) = aft) + b(t)Y(t),
where the slope coefficient, b(t), is now allowed to vary over
time. In the time-varying specification, the slope and intercept include both fixed (a,b) and time-varying [u(t), v(t)]
components
a(t) = a + u(t)
b(t) = b + v(t) ,
whereas v(t) is set to zero in fixed-coefficient analysis. In
fixed-coefficient models, the time-varying intercept contains
a component that is predictable from past observed behavior
and a component that is not. For example, a specification
used widely in the MPS model is
u(t) =p u(t-\)
+ eft),
where uft-l) denotes last period's error term, and eft) is the
unpredictable portion of the current time-varying intercept.
In time-varying coefficient models, a similar decomposition
into predictable and unpredictable elements is extended to
the time-varying component of the slope coefficient, vft).
36. The method of volatility allocation is based on the
regression estimator developed by P.A.V.B. Swamy and
P.A. Tinsley, "Linear Prediction and Estimation Methods for
Regression Models with Stationary Stochastic Coefficients,"
Journal of Econometrics, vol. 12 (1980), pp. 103-42.
1006 Federal Reserve Bulletin • December 1990
A.l.
Allocations of predictable and unpredictable variability for selected economic variables
Fixed structure
Dependent variable
Span of
sample,
quarters
Total
Slope effects
Pred.
Consumption
Time-varying structure
Unpred.
Intercept effects
Slope effects
Pred.
Unpred.
Pred.
Unpred.
Dominant source of
slope variability
Pred.
Unpred.
1960:1-88:4
1960:1-79:4
1980:1-88:4
.96
.95
.82
.00
-.01
-.01
-.01
-.02
-.05
.02
.03
.08
.03
.05
.16
Household wealth
.98
.97
.89
.02
.03
.11
1960:1-88:4
1960:1-79:4
1980:1-88:4
.69
.67
.78
.10
.12
.07
.00
.00
.00
.17
.16
.13
.04
.05
.02
Per capita consumption
.96
.95
.98
.04
.05
.02
Corporate bond rate ..
1960:1-88:4
1960:1-79:4
1980:1-88:4
.95
.94
.77
-.01
.01
-.08
.00
.00
.00
.04
.03
.21
.02
.02
.10
Short-term interest rate
.98
.98
.90
.02
.02
.10
Exchange rate
1972:2-88:4
1972:2-79:4
1980:1-88:4
.07
.12
.04
.09
.10
.09
.56
.75
.53
.24
.18
.24
.04
-.15
.10
Spread between U.S. and
foreign interest rates
.40
.40
.37
.60
.60
.63
Residential
construction
eral exchange rate) is attributed either to the fixed
portion or to the continuously varying portion of
the model structure. The fixed portion of the
model structure is defined by the fixed coefficients
originally estimated for the MPS model. Under
the simplifying assumption that the explanatory
variables are known, all fluctuations of the dependent variables described by the fixed portion of
the model structure are predictable. The variation
associated with the time-varying portion of the
model structure is further disaggregated into variation due to the intercept and variation due to the
slope coefficients. In contrast to the wholly predictable effects of the fixed portion of the model
structure, the continuous movements in the intercept and slope coefficients are only partially predictable from past behavior. Under the convention that "predictable" denotes forecasts for one
period ahead, table A.l presents an exhaustive
allocation of the variation in a dependent variable
to one of five factors: the fixed structure embodied in the MPS model, predictable movements in
the intercept, unpredictable movements in the
intercept, predictable movements in the slope
coefficients, and unpredictable movements in the
slope coefficients.37
37. The allocations of unpredictable volatility in table A.l
apply only to forecasts of economic activity over the near
term (one quarter). Uncertainty about near-term forecasts is
usually less than uncertainty about long-term forecasts because the predictable components of the slope and the
intercept generally become less important as the forecast
The first three rows in table A.l examine
allocations of the variation of household consumption in different periods. Over the full sample period (1960-88, line 1), the MPS fixedstructure rendering of the relationship among
consumption, wealth, and income explains a
sizable portion—96 percent—of the total variation in consumption, where much of the predictable variation in the level of consumption expenditures may be attributed to common trends in
consumption and income. The remainder of the
first row indicates that an additional 2 percent of
the variation in aggregate consumption may be
attributed to predictable changes in the timevarying influence of wealth and income, with no
variation in consumption attributed to predictable movements in the intercept. Only 2 percent
horizon lengthens. Diminishing predictability is a natural
consequence of the decreasing dependence of today's outcome on outcomes in the more distant past. With certain
exceptions, such as near-random-walk coefficients, the allocations to "predictable" variations in table A.l become
wholly unpredictable in lengthy forecast horizons.
Given the assumption that the explanatory variables of
each model relationship are known, forecast errors are allocated only over unpredictable changes in the slope coefficients or over unpredictable movements in the intercept.
These movements may be correlated because of common
influences on the slope coefficients and on omitted variables
captured by the moving intercept. In this case, one-half of the
estimated co-movement is allocated to each. If the comovement is negative and large, the net volatility contribution may be negative for either the time-varying slope coefficients or the intercept.
The Transmission Channels of Monetary Policy
of the variation of total consumption is unpredictable, primarily because of unpredictable
changes in the time-varying structural effects of
wealth and income. As table A.l indicates, the
dominant source of slope variation in the consumption equation is associated with the coefficients of wealth. Thus, much of the structural
variation of this equation includes a primary
policy-transmission channel to consumption expenditures—the effect of movements in wealth
induced by changes in interest rates.
The next two rows of the table contrast
allocations of total variation of consumption in
the 1980s and in earlier decades. The variation
in consumption explained by the fixed MPS
structure falls from 95 percent in the 1960s and
1970s to 82 percent in the 1980s. This decrease
is partially offset by an increase in variation due
to predictable changes in the time-varying coefficients of wealth and income. As the righthand "total" columns show, total predictable
variation in consumption falls to about 89 percent in the 1980s. The increase in net unpredictable variation of consumption is due mostly to
substantially larger unpredictable movements
in the time-varying effects of wealth. Because
wealth is the dominant source of structural
variability, the policy-transmission channel associated with interest rate effects on household
wealth is more unpredictable in the 1980s.
However, increased unpredictable variation in
the response of consumption to wealth is not
inconsistent with stable fixed-coefficient effects
of wealth on consumption.
The next three rows in table A.l present
allocations of variability for residential construction: The proportion of total variation explained by the MPS fixed structure increased
from 67 percent in the pre-1980s sample to 78
percent in the 1980s. The residential construction equation used for the table incorporates no
adjustments for the disintermediation effects of
bank deposit rate ceilings in the 1960s and
1970s. Consequently, the sizable reduction in
the 1980s of the intercept variation indicates
that the effects of disintermediation in the earlier decades were largely captured by intercept
shifts rather than by movements in the structural slope coefficients. Also, as shown by the
allocations of variation associated with the in-
1007
tercept, quarter-to-quarter changes in the intercept were highly predictable in all sample periods, including the disintermediation effects
embedded in intercept movements in the pre1980 period. Whereas time-varying movements
in slope coefficients account for a portion of the
variation in total residential construction, variations in the slope coefficients of the cost of
capital were not the dominant source of structural change, as table A.l shows. Thus, the
results of the time-varying specification appear
to be similar to the results reported in text table
4, line 5; that line gives little evidence of
time-varying changes in the effects of the cost
of capital on residential construction if the
disintermediation periods are represented by
time-varying shifts in the intercept. 38
As the next three rows of table A.l show, the
explanatory power of the MPS fixed structure in
describing the behavior of corporate bond rates
deteriorated in the 1980s. This deterioration has
been accompanied by larger movements in the
slope coefficients. Even if one accounts for the
estimated persistence of past changes of the
slope coefficients, the estimated response of
long-term interest rates to movements in shortterm interest rates apparently was not as predictable in the 1980s as in earlier decades. In
fact, unpredictable changes in the slope-coefficient effects of short-term interest rates are
virtually the sole source of uncertainty in the
equation for corporate bond rates throughout
the sample.
Finally, the last three rows of table A.l show
the allocations of variation for the MPS exchange rate. As discussed in the body of this
38. The disintermediation episodes in the 1960s and 1970s
were triggered when market interest rates breached the
deposit rate ceilings imposed by Regulation Q. However, the
effects of disintermediation episodes are captured in the
time-varying case by movements in the intercept, not by
movements in the coefficients of the cost of capital. Thus,
although the timing of disintermediation episodes may surely
be attributed to positive spreads between market rates and
the Regulation Q ceilings, the subsequent effects of disintermediations were not systematically related to the size of the
rate spreads. Whether disintermediation is more appropriately modeled as changes in the slope coefficients of the cost
of capital or as changes in the intercept remains an open
issue, but either characterization is consistent with shifts in
the conventional transmission channels of interest rates during the historical intervals of deposit disintermediation.
1008 Federal Reserve Bulletin • December 1990
article, the dependent variable in this case is the
exchange rate error produced by the MPS demand equations for foreign and domestic assets. This formulation removes the fixed-coefficient contribution of explanatory variables,
including those interest rate variables embedded in the MPS specifications. To the extent that
the spread between U.S. and foreign interest rates
is correlated with excluded explanatory variables,
the results in table A. 1 cannot distinguish between
structural change associated with the rate spread
and structural change associated with excluded
explanatory variables.
The overall predictability of the multilateral
exchange rate was relatively stable from the 1970s
to the 1980s, but the composition of predictable
and unpredictable movements in the exchange
rate underwent a sizable shift in the 1980s. The
small fraction of predictable variation in the exchange rate that can be accounted for by the
fixed-coefficient structure appears to have decreased in the 1980s. Partially offsetting this effect
is an increase in variation associated with predictable changes in the slope coefficients of the interest rate spread, which is similar to the effect of the
coefficient shift discussed in the article. In addition, however, the source of unpredictable variation in the exchange rate appears to have shifted
in the 1980s from the intercept to the slope coefficients of the spread between U.S. and foreign
interest rates. Thus, as with the long-term corporate bond rate, responses of the multilateral exchange rate to changes in the short-term interest
rate appear to be less predictable in the 1980s.
mands for M2 and Ml: The U.S. Experience in
the 1980s," in Board of Governors of the
Federal Reserve System, Financial Sectors in
Open Economies: Empirical Analysis and Policy Issues. Washington: Board of Governors,
1990.
Porter, Richard D., Thomas D. Simpson, and
Eileen Mauskopf, "Financial Innovation and
the Monetary Aggregates," Brookings Papers
on Economic Activity, 1:1979, pp. 213-29.
Exchange
Meese, Richard. "Currency Fluctuations in the
Post-Bretton Woods Era," Journal of Economic Perspectives, vol. 4 (Winter 1990), pp.
117-34.
Meese, Richard, and Kenneth Rogoff, "Empirical Exchange Rate Models of the Seventies:
Do They Fit out of Sample?" Journal of International Economics, vol. 14 (February 1983),
pp. 3-24.
The "New"
Money
Credit
Rationing
Jaffee, Dwight M., and Thomas Russell. "Imperfect Information, Uncertainty, and Credit Rationing," Quarterly Journal of Economics,
vol. 90 (November 1976), pp. 651-66.
Stiglitz, Joseph E., and Andrew Weiss. "Credit
Rationing in Markets with Imperfect Information," American Economic Review, vol. 71
(June 1981), pp. 393-410.
Financial
SELECTED
Rates
Variables and Real
Activity
READING
Demand
Enzler, Jared, Lewis Johnson, and John Paulus.
"Some Problems of Money Demand," Brookings Papers on Economic Activity, 1:1976, pp.
261-80.
Moore, George R., Richard D. Porter, and David
H. Small. "Modeling the Disaggregated De-
Fisher, Irving. "The Debt-Deflation Theory of
Great Depressions," Econometrica, vol. 1
(October 1933), pp. 337-57.
Gurley, John G., and Edward S. Shaw. Money
in a Theory of Finance. Washington: The
Brookings Institution, 1960.
Keynes, John Maynard. The General Theory of
Employment, Interest and Money, Chapter 12.
New York: Harcourt, Brace, 1936.
1009
The Current Fiscal Situation in State
and Local Governments
This article was prepared by Laura S. Rubin of
the Board's Division of Research and Statistics.
Catherine B. Wood provided research assistance.
The fiscal position of state and local governments
has deteriorated markedly during the past several
years, with many governments confronting potential shortfalls in their operating accounts.
Budgetary problems have been most severe in
New England, New York, and New Jersey,
partly as a consequence of slumping real estate
markets and weakness in the defense, finance,
and high-technology industries; but fiscal problems have been widespread.
The last half of the 1980s has seen the financial
resources of the states pressured by several
concerns: the quality of education and rising
school enrollment, the deterioration of the public
infrastructure, and mandates to improve the
health care of the needy and to upgrade correctional facilities. Over the same period, revenue
sources have dwindled; early in the 1980s, the
federal government cut back its aid to the sector,
and some states subsequently reduced their
grants to localities. State and local governments
made up some of the difference through tax
policy, but tax collections have been lower than
expected, particularly in 1988 and 1990.
This article describes the accounts of the state
and local sector, discusses the recent spending
requirements and revenue shortfalls that have
precipitated the current budget woes, and gives a
brief perspective on the outlook.
THE FISCAL ACCOUNTS OF STATE
AND LOCAL
GOVERNMENTS
Three fiscal accounts are important to a full
understanding of the state and local budget situ
ation—the relevant portions of the national income and product accounts (NIPA), the general
fund accounts of the governments, and the accounts of the governments' social insurance
funds covering their employees. A description of
these accounts should help clarify the factors
influencing the budgetary picture and avert potential misconceptions about, for example, balanced general fund accounts and social insurance
funds.
Operating and Capital Accounts
in NIPA
The combined operating and capital accounts of
state and local governments as reported in NIPA
(prepared by the Bureau of Economic Analysis in
the U.S. Department of Commerce) give a broad
view of the fiscal condition of the sector. These
accounts cover all expenditures and revenues of
the current fiscal year (proceeds of bond issues
are excluded, although interest on state and local
debt is part of outlays); NIPA operating and
capital accounts exclude the social insurance
funds, which consist of the funds for state and
local retirement systems plus, in some cases,
those for worker's compensation and disability.
The aggregate operating account for the sector is
not calculated separately from the aggregate capital account.
As reported in NIPA, the deficit of state and
local governments grew from $3 billion at the end
of 1986 to $30 billion in the first half of 1990.
When scaled by state and local government expenditures, the current deficit is in the range last
seen during the 1974 recession (chart 1). Deficits
of a similar magnitude, relative to expenditures,
were chronic in the 1950s and 1960s, when construction spending for roads, schools, and other
infrastructure—which is partly financed through
the capital markets—made up about one-fourth
of state and local outlays. In contrast, the rise in
1010 Federal Reserve Bulletin • December 1990
1. Budget surpluses and deficits of the state and
local sector as a proportion of sector expenditures 1
Percent
=
z
V73
1V\A/
J
The General Fund
K
I
6
9
111111II1
1960
1965
1970
that the imbalance between revenue collections
and spending priorities ultimately will have to
be corrected through tax increases or reductions in expenditures.
1 11 1 1 1 1 1 1 11 11 11 1 1 1
1975
1980
1985
1990
1. Quarterly data; operating and capital accounts excluding social
insurance funds.
SOURCE. National income and product accounts.
the deficit during the second half of the 1980s has
not reflected a disproportionate surge in public
capital spending. Even when building activity
advanced in the mid-1980s, outlays for construction remained around 10 percent of expenditures
(chart 2).
The sector's deficits in the last few years have
been the first since 1967 to worsen in the
absence of a general economic downturn (chart
1). As spending on infrastructure became less
important in the late 1960s and early 1970s, the
sector began to experience budgetary surpluses, except when recessions eroded tax
bases and expanded the demand for resources.
However, the recent deficits evolved during a
period of economic expansion, which suggests
2. Construction spending by the state and local sector
as a proportion of sector expenditures 1
Percent
25
Budgets
The general fund budgets of state and local
governments—their main operating accounts—
also have shown deterioration over the last several years. Among the states, general fund budgets represent an average of 60 percent of total
outlays (excluding social insurance funds). The
composition of the state general fund budgets
varies considerably. 1 On the expenditure side,
the budgets include compensation for employees
as well as outlays for nondurable goods, other
services, and interest expenses; but they typically exclude most spending for construction,
which is usually reported in a separate capital
account. (In contrast, cities and other local governments often include construction in their general fund budgets.)
In every state except Vermont, the general
fund budget is required constitutionally or statutorily to be balanced, either within each fiscal
year or over a two-year period. Typically, a
balanced budget requires that revenues be at
least as large as outlays, but states may use
surpluses from the preceding fiscal year to
achieve balance in the current year. If a shortfall is anticipated during the planning stages of a
budget, which occur during the legislative session preceding a given fiscal year, state governments usually cut spending and increase taxes,
fees, and charges. Proceeds of short-term debt
offerings, and occasionally bonds, have been
used by some states to cover shortfalls and
"balance" their general fund budgets. Balancing techniques employed when shortfalls appear toward the end of the fiscal year include
the postponement of certain payments until
after the end of the year or the acceleration of
15
M B i t
I960
1 •
1 1 1 • 1 1i •
1970
111 • 111
1980
1. Quarterly data; excludes social insurance funds.
SOURCE. National income and product accounts.
m
i 1 1 •
1990
1. State general fund budgets are reported and analyzed
each year by the National Association of State Budget
Officers of the National Governors' Association (Washington, D.C.) in Fiscal Survey of the States and by the National
Conference of State Legislatures (Denver and Washington,
D.C.) in State Budget and Tax Actions.
The Current Fiscal Situation in State and Local Governments
some receipts into the year. In addition, certain
functions may be moved outside the realm of
the general fund budget. Thus, although a simple comparison of expected outlays and receipts from current resources may imply a
deficit, considerable fiscal maneuvering can
produce a "balance," maneuvering that has
been characterized as "the twilight zone of
state fiscal procedures." 2
Even without a legal mandate for a balanced
budget, important considerations push state
and local governments to enact general fund
budgets that show a balance or slight surplus.
For state and local governments, the long-run
cost of fiscal weakness is the higher interest
rates that are required to sell debt when budgetary pressures affect perceptions of investors,
whether or not such pressures have been formally captured in bond ratings. The higher
interest rates put further pressure on already
strained budgets. Often, just the possibility of
higher rates may choke off bond issuances. In
1989, when the credit rating of the state of
Massachusetts was being downgraded, local
governments in the state postponed debt offerings until the situation stabilized. More recently, in September 1990, Philadelphia was
unable to sell short-term securities because of
its below-investment-grade debt rating and still
worsening fiscal situation. Although the fiscal
position of a state or municipality is not the only
factor considered by credit rating agencies, it is
an important one. For example, in the recent
downgrading of the general obligation debt of
New Haven, Connecticut, Moody's Investors
Service noted the city's weakening fiscal
health, the projected city budget deficit, the
slowing regional economy, and large capital
needs.
Although financing costs and balanced budget
requirements tend to move state and local budgets toward surplus, political considerations
usually do not allow large surpluses to persist.
In 1978, after several years of significant state
surpluses, voters in California approved Proposition 13, a state constitutional amendment
2. "Fiscal Notes," State Budget and Tax News, July 31,
1990, p. 11.
1011
designed to reduce property taxes collected by
local governments. Within a few years, many
other states had enacted legislation to reduce
taxes or limit the growth of government. Currently, twenty-one states have either constitutional or statutory limits on spending or
taxes. 3
A state's difficulties with its general fund
account often spill over into its capital spending. For example, in the energy-producing
states of Colorado, Louisiana, Oklahoma, and
Wyoming, construction spending was either cut
or postponed during the mid- to late-1980s, with
the funds diverted to current operations to help
ease the effect of revenue shortfalls associated
with the drop in the price of crude oil. In 1988,
the state of New York used $600 million, previously intended for housing and repairs to
roads and bridges, to help close a gap in the
general fund budget. The deferred capital
projects were built eventually but were funded
from different sources—in the case of housing,
from current revenues. More recent fiscal problems in its general fund budget have caused the
state of New York actually to cut back its
construction programs. Moreover, unlike earlier years, when current revenues in the general
fund were high enough to support about 30
percent of capital expenditures, now virtually
all such spending is financed through the debt
markets.
Fiscal tightness is damping construction
spending by cities, as well. To cope with budgetary pressures in 1990, nearly 40 percent of cities
surveyed by the National League of Cities reduced the actual level of capital spending.4
All but three states ended fiscal year 1990
with balanced general fund budgets, according
to the National Association of State Budget
Officers. However, when resources available
from the preceding year are excluded, expenditures exceeded revenue in thirty-three states.
The exclusion of surpluses from the preceding
year creates a budget concept somewhat closer
3. Scott Mackey, "Tax and Spending Limitations on the
November Ballot," The Fiscal Letter (National Conference
of State Legislatures), Sept./Oct. 1990, pp. 5-6.
4. Douglas D. Peterson, City Fiscal Conditions in 1990
(Washington: National League of Cities, 1990), p. iv.
1012 Federal Reserve Bulletin • December 1990
to that of NIPA, which includes only current
outlays and current receipts; these surpluses
are the source of some of the inconsistency
between the fiscal balance reported in the general fund data and the fiscal erosion evident in
NIPA. An additional source of this disparity is
the exclusion of most capital accounts from
state general fund accounts: The capital accounts may well have been in deficit in recent
years as construction spending began to rise in
the mid-1980s. Moreover, NIPA includes all
local governments, which are responsible for
about half of the sector's total expenditures and
many of which also have been experiencing
fiscal distress in recent years.
Social Insurance
Funds
Separate from operating and capital accounts are
the accounts of the state and local social insurance funds. For the sector as a whole, the surplus
of the retirement systems constitutes 90 percent
to 95 percent of the surplus of all the social
insurance funds, which in some states also include worker's compensation and disability insurance. Roughly 90 percent of all state and local
government workers are covered by about 10
percent of the approximately 6,000 pension funds
in the sector.
Inflows to the insurance funds accrue from
contributions by employers and personnel as
well as from interest earnings. Offsetting these
revenues are transfer payments to beneficiaries
and administrative expenses. Surpluses of state
and local social insurance funds are a source of
saving that is available each year to the rest of
the economy via the credit and equity markets;
the surpluses have grown steadily in recent years
and stood near $70 billion at an annual rate in the
second quarter of 1990.
Almost all state and local pension funds are
based on defined benefits. Government employees contribute a set percentage of their wages
and salaries and the employing state or local
government contributes the differential required
to meet a calculated benefit. The funds are managed like private pension funds in that the assets
of the funds are held against future claims by
annuitants. Fund assets are invested mainly in
U.S. government securities and in corporate
bonds and stock.
The assets of these funds are considered to be
outside the general fund and capital accounts of
the state and local governments and are rarely
touched even in the event of severe fiscal
deterioration. However, public employers
sometimes reduce their contributions in response to budgetary distress—the state governments of Texas, Oklahoma, Louisiana, and
New York have been examples over the past
few years. To facilitate this type of adjustment,
some accounting device is typically used to
decrease contributions or to lengthen the period
of amortization of unfunded liabilities. New
York State, for example, raised the interest rate
assumption on which the earnings were based,
leaving it room to cut its payments into the
fund.
An important distinction exists between the
state's contributions and the corpus, or assets, of
the trust itself, and for states to borrow money
directly from the corpus of their pension funds is
extremely rare. Their fiduciary responsibility requires the administrators of pension funds to
guard the corpus and earn the highest return
possible; hence, investing in state bonds, for
example, would not be prudent because they pay
a relatively low, tax-exempt rate, and the pension systems are exempt from taxation. And a
transfer from a pension fund to an operating
account would be out of the question; interfund
transfers are usually carried out only among
dedicated funds that are under government control, like the state highway trust fund or the
conservation fund.
The fundamental distinction between the social insurance funds and the fiscal accounts of
state and local governments can be better appreciated if the insurance funds are viewed as private pension balances. Much of the long-run
growth in social insurance funds can be attributed to the growth of public sector employment.
If this employment growth had occurred in the
private sector instead of the public sector—for
example, through greater dependence on private
schools or privately operated services—then,
other things equal, public pension fund balances
would have been lower and private pension fund
balances would have been higher.
The Current Fiscal Situation in State and Local Governments
THE CURRENT FISCAL
SITUATION
The deteriorating fiscal position of state and local
governments stems from gathering pressures for
more spending on facilities and services combined with weakened revenues. This section describes these problems and discusses the current
fiscal policies of states and localities in dealing
with them.
Expenditures
In recent years, fundamentals in several areas
have necessitated greater spending than expected by budget planners. Currently, nearly
two-thirds of state general fund budgets are dedicated to education, medicaid, and corrections;
and current population trends point to further
increases in these areas in the coming years
(chart 3). Court orders in many states and federal
mandates have also added to state spending
requirements, and the repair and expansion of
the public infrastructure has become an important goal in many states and localities.
3. Selected factors in state and local expenditures
Millions
46
Thousands
1977
1979
1981
1983
1985
1987
1989
SOURCE. U.S. Department of Education; Department of Health and
Human Services; U.S. Department of Justice.
1013
Education. Outlays on public education account for 50 percent of state general fund budgets, more than 40 percent of all purchases of
goods and services by state and local governments, and more than 5 percent of gross national
product. Such spending is likely to grow substantially over the next decade, both to improve the
quality of education and to accommodate the
rising number of school-age children.
To improve the quality of education, schools
have imposed stricter course guidelines and
required new competency tests for teachers and
students, two relatively low-cost strategies.
However, many school systems have added
more significantly to costs by starting or expanding special education programs over the
past two decades, especially those for handicapped children: In 1973, the Congress passed
the Rehabilitation Act which, among other
things, prohibited discrimination against the
handicapped; and two years later, by adopting
the Education of the Handicapped Act, the
Congress required public school systems to
make available to all handicapped children a
free education appropriate to their needs. Since
the passage of these bills, the handicapped have
been educated increasingly through the public
school system. In addition, programs for gifted,
learning-disabled, and bilingual children have
been expanded. These programs likely contributed not only to a lowering in the studentteacher ratio but also to the hiring of additional
support personnel and the purchase of special
equipment and supplies.
The quest for better schools received a boost
in 1983 with the publication of a special study, A
Nation At Risk, that was commissioned by Secretary of Education T.H. Bell in response to his
concern about "the widespread public perception that something is seriously remiss in our
educational system." 5 Weaknesses identified in
the study centered on the curriculum, expectations about the level of knowledge that should be
acquired, the time spent by American% students
on schoolwork as compared with the time spent
5. The National Commission on Excellence in Education,
A Nation at Risk: The Imperative for Educational Reform
(Government Printing Office, 1983), p. 1.
1014 Federal Reserve Bulletin • December 1990
by children in other countries, and the relative
attractiveness of the teaching profession. In response, some states adopted quality standards
that eventually were viewed by local governments as commitments. Growth in real operational outlays for education accelerated during
the mid-1980s, a response facilitated by the
healthy fiscal position of state and local governments in the early years of the current economic
expansion. A report published by the U.S. Department of Education in 1988, American Education: Making it Work, found that substantial
progress had been made. For example, more
students were studying basic subjects than
earlier in the decade, and the performance of
schools was judged to be generally improved.
However, the study concluded that a considerable gap still existed between the current
status of the educational system and the objectives.
Adding to the pressures on school budgets
has been the current rise in the number of
school children. After falling for twenty years,
births nationwide began to increase during the
mid-1970s, resulting in a corresponding rise in
public elementary school enrollment in 1982.
The number of elementary school teachers also
started to increase that year, and real construction spending on educational facilities began to
rise in 1985. At the secondary level, enrollment
has continued to decline; however, the number
of students in public high schools is expected to
start increasing in 1991.
Projections by the Department of Education
call for total public school enrollment to rise
about 3 million by 1997 and for real expenditures
to increase—by 2VI percent to 3 percent per year
over the next decade; these estimates build-in
both a sizable rise in the number of teachers
and some increase in their real salaries. Spending
on school construction is likely to rise, both
to create space for the expanding population of
school children and, in many school systems,
to perform long-delayed repairs and maintenance. Clearly, keeping up with rising enrollments as well as quality goals could prove to be
a formidable task for any government, but
particularly for one plagued by revenue shortfalls.
Medicaid. Medicaid provides specific medi-
cal services to most recipients of federal cash
assistance programs (Aid to Families with Dependent Children and Supplemental Security
Income) and to others meeting a separate test of
financial need. The program is administered by
the states and funded by both the states and the
federal government. States choosing not to participate in the national program must offer their
own program; Arizona is the only state not
participating. States may have broader programs than required, and their policies on reimbursement and administration differ; as a result,
the medicaid program varies considerably from
state to state.
Each state's federal payment for medicaid is
dependent on its per capita income; currently,
the federal government's share ranges from 50
percent to 78 percent. In addition, the medicaid
program in some states includes recipients that
are not eligible for federal matching funds;
hence, those states receive no federal contribution for the care of such individuals.
Between 1987 and 1990, outlays for medicaid
rose as a share of state expenditures from 10
percent to 12 percent. About half of the increase in medicaid costs during the mid-1980s
appears to be attributable to inflation, about
one-fourth to intensity of use (more services
used per individual), and about one-fourth to an
increase in the number of recipients—enrollment has grown 15 percent since 1980. Much of
the increase in enrollment and intensity of use
stems from federal mandates requiring states to
cover individuals at higher levels of income or
to include previously optional services. For
instance, as of April 1, states were required to
cover infants and pregnant women whose income is up to 133 percent of the poverty line
and children up to age six; previously, only
those whose incomes fell below poverty and
children up to age one had to be covered. In
addition, the October 1990 federal budget
agreement further expanded coverage for children.
In fiscal year 1990, medicaid spending nationwide totalled $61 billion, with state governments paying for 42 percent of the total and
about 25 million people receiving benefits. The
18 percent advance in state medicaid spending
that year strained state general fund budgets
The Current Fiscal Situation in State and Local Governments
that were written in anticipation of a 10 percent
increase. 6
Correctional Facilities. Corrections spending,
which covers outlays for the construction and
operation of state prisons, for probation and parole programs, and for juvenile justice systems,
has been one of the fastest growing components of
state general fund budgets since the mid-1980s. In
the fiscal year just ended, spending on corrections
grew 17 percent, compared with a 9.5 percent rise
in total general fund outlays. Spending for corrections currently accounts for 5 percent of general
fund budgets. Much of the increase in recent
years arises from growth of the inmate population
and from court orders addressing various aspects
of the corrections system.
The number of inmates in state prisons had
remained fairly steady in the postwar period until
the late 1970s, when it began a rapid increase that
has been attributed, in part, to the rise of illegal
drug use. During the 1980s the number of inmates
in state prisons more than doubled, to about
650,000, or about 60 percent of all inmates in the
United States. (In 1989, another 35 percent were
held at local jails, and 5 percent were in federal
prisons.)
Numerous court orders to improve state prison
systems in various ways have also added to
costs. For example, as of January 1989, guidelines stipulating population limits had been set in
twenty-seven states; orders covering other conditions in prisons had been handed down in
thirty-one states; and the courts had appointed a
variety of monitors and other overseers in fifteen
states. In addition, health care costs have been
rising, in part because of the growing incidence
of AIDS among inmates in recent years.
concern, and with the support of an improved
fiscal posture, state and local construction spending; began to advance in 1984. By far the largest
increase was in school building, which makes up
about one-fifth of state and local construction
spending. In addition, real outlays for highways,
bridges, and sewer and water facilities increased
considerably. Indeed, by the third quarter of
1990, the level of real construction spending was
50 percent above its low at the end of 1983.
Despite this rise in outlays, construction activity remained low relative to total state and local
government expenditures throughout the 1980s.
And further examination shows that the state and
local stock of structures, net of depreciation and
measured in real terms, while still quite high, has
been little changed per capita since the mid1970s—falling a bit during the early 1980s and
then edging up in recent years when outlays for
construction began to rise; it currently stands 2
percent below the high, recorded in 1979 (chart 4).
Among the major components of infrastructure, the per capita stock of highways and streets
fell steadily from its peak in 1974 and then
increased in 1987 and 1988. The stock of educational facilities, measured against the number of
school-age children, edged up in the late 1980s,
after falling for six years. However, the per
4. Stock of structures and of selected components
in the state and local sector 1
Thousands of 1982 dollars per capita
Schools2
6
/
Total
4
Infrastructure. Throughout the past decade the
nation has become increasingly aware of the
deterioration of its public infrastructure, which
broadly speaking includes roads and bridges,
water supply and treatment facilities, prisons,
schools, hospitals, and parks. In response to this
6. Corina L. Eckl, Anthony M. Hutchison, and Ronald K.
Snell, State Budget and Tax Actions 1990, Legislative Finance Paper 74 (Denver and Washington: National Conference of State Legislatures, September 1990).
1015
Highways
2
Sewer and water
1950
1960
1
1970
I
1
1980
1
1
1990
1. All values are net of depreciation.
2. Per school-age child.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis.
1016 Federal Reserve Bulletin • December 1990
The Stock of Public Capital and Productivity
The growth in both the stock of public capital and in
productivity slowed in the 1970s and 1980s. Some
analysts, notably David Alan Aschauer, have argued
that a strong, contemporaneous, causal link exists
between investment in public capital and growth in
productivity (see his "Is Public Expenditure Productive?" Journal of Monetary Economics, vol. 23,
March 1989, pp. 177-200). Adding to the public
capital stock, these analysts say, would bolster
potential output in the economy: Adequate public
capital lowers private costs, and close associations
can be made, for example, between growth in the
nation's output and the construction of the interstate
highway system.
A number of contrary arguments, however, raise
questions about the strength of the association between spending on public works and productivity
gains—especially in the short run. Even in the case
of roads and bridges, much repair and modernizing
would not enhance productivity in the short run. For
example, most of the numerous bridges about which
authorities currently worry are still used each day
and could perhaps remain serviceable for quite a few
more years. Educational facilities may also have
direct links to productivity; but many years must
pass before today's grade schoolers can enter the
work force, so any connection between improved
educational facilities and increased output per hour
would not be contemporaneous. Also, although the
connection between productivity and the community well-being that is promoted by spending on
correctional facilities, hospitals, and parks is intuitive, it is unlikely to be strong, especially in the short
run. Thus, while modern societies are dependent on
a sound infrastructure, as the foregoing examples
suggest, the qualitative notion that an infusion of
capital spending, on the margin, will spur increases
in output per factor input is not clear.
capita stock of water supply and treatment systems has continued to trend up throughout the
postwar period as has the per capita stock of
miscellaneous capital, which includes correctional facilities, hospitals, and other governmental buildings and structures.
Further spending to expand and upgrade the
infrastructure is expected to remain an important
An analysis using the same framework as that of
Aschauer suggests that the relationship between
growth in multifactor productivity and growth in the
public capital stock (nonmilitary federal, state, and
local equipment and structures) is significant but
inelastic. Of the total stock of public capital, state
and local structures have the greatest effect on
productivity; neither the stock of federal structures
nor that of total equipment is significantly related to
multifactor productivity. The amount of "core"
infrastructure—roads, bridges, sewers, and water
supply systems—has the strongest statistical relation to productivity, with an elasticity slightly higher
than that for total state and local structures. Educational facilities are also significant, but have an
elasticity lower than that for the total. The remaining
category, which includes hospitals, office buildings,
and ajl other structures, is not statistically significant. Also, on a more disaggregate basis, only one of
twelve industries studied—the petroleum industry—
showed a statistically significant relationship between its productivity and the level of core infrastructure.
Most economists think that a multitude of factors contributed to the productivity slowdown
during the 1970s. Although the slowing in the
growth of the public capital stock may be one of
these factors, conventional growth accounting
also casts doubts on assigning it a central role, as
does most work by others that is based on microeconomic or regional data. Maintenance of the
nation's infrastructure is important, and new facilities must be provided for growing neighborhoods and businesses. But given the current evidence, we should not expect infrastructure
investment, by itself, to have a strong effect on
productivity growth in the short run.
priority among state and local governments in the
years ahead, as state and local structures account
for 80 percent of the nondefense public capital
stock. Aging highways, bridges, and water systems will need to be repaired or replaced, and
increased school and prison populations, noted
above, will require more building. Some federal
aid is available, particularly for highways and
The Current Fiscal Situation in State and Local Governments
5. Selected collections as a proportion of state
and local receipts1
Percent
'
Personal taxes and other personal receipts2
25
^Federal grants-in-aid
20
1980
1
1
1982
1
1
1984
1
1
1986
1
1
1988
I
1. Quarterly data; excludes contributions for social insurance.
2. See text note 7.
SOURCE. National income and product accounts.
mass transit, but financing the bulk of the spending will be up to state and local governments.
Revenue
The postwar growth of federal aid to state and
local governments ended in the 1980s. During
that decade, federal aid fell as a share of state and
local revenues—excluding social insurance
funds—from 25 percent to 17 percent (chart 5).
Indeed, at the outset of the period, support was
actually reduced in nominal terms, from nearly
$89 billion in 1980 to less than $84 billion just two
years later. In addition, tax collections fell below
expected levels as growth in most tax bases
slowed late in the decade and corporate profits
declined.
With the decline of federal aid, state and local
governments became more dependent on personal receipts—taxes, fees, and charges—to
fund their budgets; during the 1980s, the proportion of revenue derived from these sources
grew from 23 percent to 28 percent (chart 5). In
addition, many states raised excise tax rates
during the 1980s, especially on gasoline and
cigarettes. 7
7. Personal levies, reported collectively as personal tax and
nontax receipts, comprise income taxes; estate, gift, and
personal property taxes; tuition at state and local universities; hospital and other health-related charges; and fines and
other fees. In contrast to these revenues, total sales taxes,
which include excise taxes, have risen only slightly as a share
of the sector's total revenue over the decade; excise taxes are
1017
In fiscal 1990, twenty-six state legislatures
enacted tax hikes, some of them unusually
large. According to the National Association of
State Budget Officers, the 1990 increases will
add $10.3 billion to fiscal 1991 receipts, the
largest nominal increase on record; the additional revenue is expected to be concentrated in
New Jersey, New York, California, Massachusetts, and Florida. For fiscal 1991, more than
half the rise is expected to come from increases
in general sales taxes and personal income
taxes.
Local governments also have come under
considerable budgetary pressure this past fiscal
year. A survey by the National League of Cities
reported that, despite tax hikes and spending
reductions, expenditures would outstrip receipts in fiscal 1990 in 54 percent of cities; over
the preceding six years, the proportion of such
cities ranged between 24 and 40 percent. 8 Further increases in local taxes may be inevitable
as state governments, along with the federal
government, cut back aid. Massachusetts and
North Carolina reduced their grants to local
government this year, and Virginia is expected
to follow suit. Some states have cleared the way
for local tax hikes by authorizing such increases—for example, higher sales taxes in
Arizona and South Carolina and a "local-option" gasoline tax in Florida. Some states increased the amount of property taxes that localities must raise in order to qualify for state
aid. In a few states, a change in school-aid
formulas could shift some state funds out of
more affluent communities and force them to
raise local taxes to maintain their school budgets; likewise, however, the rise in overall state
tax collections and the shift in aid formulas
could result in some property tax relief in other
communities.
Many local jurisdictions have increased property taxes even as several states are experiencing tax revolts and granting some relief. A
survey of municipalities revealed that 41 percent raised property tax rates in fiscal year
set at a fixed amount per unit sold, whereas general sales
taxes are levied as a proportion of the dollar amount sold.
8. Peterson, City Fiscal Conditions, pp. 8-9.
1018 Federal Reserve Bulletin • December 1990
1990, while 43 percent created new fees, and 76
percent raised the level of fees and charges. 9
Moreover, for the year ending in the second
quarter of 1990, property tax collections rose
faster than the NIPA measure of total state and
local tax receipts. Many of the local governments that have not raised property tax rates
have seen their collections bolstered by the
increase in assessed values that reflected price
advances during the late 1980s; however, prospects for further increases in assessed values
are less favorable, given more recent price
developments.
About one-third of local government receipts
comes from property taxes, with a smaller
share coming from fees and charges; both types
of levies are a logical source of additional
revenue for these governments during periods
of budgetary tightness. State governments also
have been raising fees and charges in recent
years. But local governments are more dependent on fees and charges than are state governments, and as local governments are pinched by
falling federal and state aid, they can be ex-
9. Peterson, City Fiscal Conditions, p. iv.
pected to place even greater reliance on such
income.
THE OUTLOOK
The combined operating and capital account of
the state and local government sector has been in
deficit now for nearly four years and probably
will remain so for several years more. Nonetheless, the deficits are likely to diminish. Tax hikes
among states were large and numerous in 1990,
and local governments raised property taxes and
fees and charges. On the spending side, some
cuts from earlier plans have been made on the
education front, and other spending compromises can be expected. Overall, with rising revenues and some constraint on spending, one
might expect to see better fiscal health in the
years ahead.
This outlook is predicated on the assumption
of continued growth in the economy as a whole.
Tax collections depend not only on tax rates but
also on incomes and sales. If the economy weakens in the year ahead, state and local governments will have more difficulty bringing revenues
and expenditures into alignment.
1019
Industrial Production and Capacity Utilization
Released for publication on October 17
Industrial production increased 0.2 percent in
September; because upward revisions were made
to estimates for earlier months, the index now
shows increases of 0.1 percent in August and 0.2
percent in July. On a quarterly average basis,
industrial production in the third quarter grew at
nearly the same pace as in the second quarter;
however, the average monthly gain during the
summer was about one-half of that posted during
the preceding quarter. Industrial capacity utilization was unchanged in September at 83.6 percent.
In September, the output of motor vehicles
and parts rose 7.5 percent, boosting the indexes
for both consumer goods and business equipment. With production of motor vehicles and
parts excluded, industrial output edged down in
Industrial production indexes
Twelve-month percent change
Twelve-month percent change
Products
Materials
Durable
manufacturing
1985
1986
1987
1988
1989
1985
1990
1986
1987
1988
1989
1990
Capacity and industrial production
Ratio scale, 1987 production = 100
-
Capacity
-
1
t
120
"
"
-
Production
1
140
-
—Total industry
—
Ratio scale, 1987 production =100
1
1
1
1
-
1
1
1
1
100
80
1
Percent of capacity
Total industry
Utilization
I
I
I
I
I
I
I
I L
1978
1980
1982
1984
1986
1988
1990
All series are seasonally adjusted. Latest series, September.
1978
1980
1982
1984
1986
1988
1990
1020 Federal Reserve Bulletin • December 1990
1987 = 100
Percentage change from preceding month
1990
1990
Industrial production
June r
July r
Aug/
Sept. p
June r
July r
Total index
110.1
110.3
110.4
110.7
.6
.2
.1
Previous estimates
110.0
110.0
109.8
.5
.0
-.2
Major market groups
Products, total
110.9
110.8
110.9
111.5
.3
-.1
Consumer goods
Business equipment
Construction supplies
Materials
107.8
124.4
106.0
108.8
107.3
124.6
106.4
109.5
107.8
124.8
105.9
109.7
109.1
125.6
104.9
109.4
.3
.7
.5
1.0
-.4
.1
.3
.7
Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities
110.8
113.4
107.6
102.2
109.7
111.0
113.2
108.1
103.5
109.4
111.2
113.6
108.1
101.8
110.8
111.4
113.8
108.3
102.1
111.8
.5
.7
.2
.0
2.5
.1
-.1
.5
1.3
-.4
Aug/
Sept. p
Percentage
change,
Sept. 1989
to
Sept. 1990
.2
2.2
.1
.5
2.4
.5
.2
-.5
.1
1.2
.6
-.9
-.2
2.7
4.1
-.3
1.9
.2
.3
-.1
-1.7
1.3
.2
.2
.2
.4
.9
2.1
2.1
2.2
.6
5.6
Percent of capacity
Capacity utilization
Average,
1967-89
Low,
1982
High,
1988-89
1989
1990
Sept.
June
July
Aug.
Sept. p
Capacity
growth,
Sept. 1989
to
Sept. 1990
Total industry
82.2
71.8
85.0
83.9
83.7
83.7
83.6
83.6
2.6
Manufacturing
Advanced processing
Primary processing
Mining
Utilities
81.5
81.1
82.3
87.3
86.8
70.0
71.4
66.8
80.6
76.2
85.1
83.6
89.0
87.2
92.3
83.6
82.5
86.1
87.2
84.3
83.0
81.9
85.5
88.8
86.8
82.9
81.6
86.0
90.0
86.4
82.8
81.5
86.0
88.6
87.4
82.8
81.7
85.4
89.0
88.1
3.1
3.4
2.5
-1.5
1.0
r Revised.
p Preliminary.
September: Output of consumer nondurable
goods and energy materials rose sharply, but
production in most other major market categories declined in September. During the past year,
total industrial output has risen 2.2 percent to
110.7 percent of its 1987 annual average.
In market groups, production of consumer
goods other than autos and trucks increased 0.5
percent in September. Nondurables, particularly
foods, posted noticeable gains, but output of
appliances and other goods for the home remained sluggish. Excluding motor vehicles, production of business equipment declined 0.3 percent, reflecting not only a decrease in industrial
equipment but also a slowing in information
processing and related equipment. Both of these
equipment sectors had posted large production
gains earlier in the summer. Output of construction supplies fell sharply in August and September after rising a bit in the prior two months;
since the beginning of the year, production in this
NOTE. Indexes are seasonally adjusted,
market category has fallen nearly 3 percent.
Output of both durable and nondurable materials
declined in September. Among durables, the
largest drop occurred in the production of basic
metals, in part because steel output, which had
surged in August, dropped back. Output of nondurables declined in the past two months, retracing the sizable gains made in June and July; the
production of textiles has been particularly
weak. The rise in output of energy materials
reflected another jump in electricity generation
and a rebound in coal mining.
In industry groups, manufacturing output
edged up 0.2 percent in September, leaving the
factory operating rate unchanged at 82.8 percent—about the same level of utilization that
has prevailed throughout most of this year.
Apart from the sharp rise in motor vehicle assemblies, manufacturing output dropped 0.2 percent, with declines widespread among all primary processing industries except petroleum.
Industrial Production and Capacity Utilization
Even though the operating rates for both steel
and nonferrous metals dropped back in September, they were still well above levels seen earlier
in the year. Only construction-related industries
have experienced a noticeable decline in their
operating rates since the beginning of this year.
Other advanced processing industries that
posted gains in September included food, chemical products, and miscellaneous manufacturing.
1021
In contrast, the production of nonelectrical machinery declined in September, bringing down
the utilization rate, which by August had come
close to its 1988-89 high.
The rise in the output in mining and at utilities
moved the operating rate up for both sectors.
The utilization rate for mining has changed little,
on balance, since last spring, while the rate for
utilities has risen sharply.
1022
Statements to the Congress
Statement by Alan Greenspan, Chairman, Board
of Governors of the Federal Reserve System,
before the Subcommittee on Commerce, Consumer, and Monetary Affairs of the Committee
on Government Operations, U.S. House of Representatives October 3, 1990.
I am pleased to appear before the committee to
discuss deposit insurance reform. The issue has
increasingly come to the attention of the Congress and the media as the cost of resolution of
failed thrift institutions becomes more apparent
and as various government and private reports
focus on the potential liabilities facing the Bank
Insurance Fund. Last year the Congress mandated a study of the issues by the Treasury. This
study, in which the Federal Reserve, the Federal
Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC),
the Office of Thrift Supervision (OTS), and other
agencies will be active participants, will be published later this year or early next. But hearings
on the issues now by this and several other
committees of the Congress will, I hope, sharpen
the focus on the need for legislation promptly
after the release of the Treasury report.
Your letter of invitation, Mr. Chairman, focuses on the issues associated with the feasibility, benefits, and risks of some reduction in
insurance coverage and the associated potential
for enhanced depositor discipline. The Board has
considered these highly complex and important
questions on several occasions. My statement
today will summarize our views on this approach
to the problem, but the Board believes it is
important for the Congress to review options
other than reduced insurance coverage to address the root cause of the taxpayer exposure
and the potential financial market distortions
associated with our present deposit insurance
and supervisory approaches.
As you know, Mr. Chairman, the Board also
believes that deposit insurance reform is inti-
mately related to the pressing need to modernize
our banking system in other ways. The erosion of
the domestic and international competitive position of U.S. banks must be addressed by expanded permissible activities and wider geographical branching powers, and we believe that
legislation in this area should be joined with
deposit insurance reform. I have presented the
Board's proposals on these subjects before the
Senate and House Banking committees this summer. Given the narrower focus of the hearings
today, and the additional witnesses this morning,
I have omitted a detailed delineation of the
Board's modernization proposals, but I nevertheless want to underline their importance, with
the strong endorsement that these issues should,
in the Board's view, be considered jointly with
deposit insurance reform by this committee and
by both Houses of the Congress.
The fundamental problems with our current
deposit insurance program are clearly understood and are, I believe, subject to little debate
among those with drastically different prescriptions for reform. The safety net—deposit insurance, as well as the discount window—has so
lowered the risks perceived by depositors as to
make them relatively indifferent to the soundness
of the depository recipients of their funds, except
in unusual circumstances. With depositors exercising insufficient discipline through the risk premium they demand on the interest rate they
receive on their deposits, the incentive of some
banks' owners to control risktaking has been
blunted. Profits associated with risktaking accrue
to owners, while losses in excess of bank capital
that would otherwise fall on depositors are absorbed by the FDIC.
Weak depositor discipline and this moral hazard of deposit insurance have two important
implications. First, the implicit deposit insurance
subsidy has encouraged banks to enhance their
profitability by increasing their reliance on deposits rather than capital to fund their assets. In
1023
effect, the deposit insurance funds have been
increasingly substituted for private capital as the
cushion between the asset portfolios of insured
institutions and their liabilities to depositors. A
hundred years ago, the average ratio of equity
capital to assets of U.S. banks was almost 25
percent, approximately four times the current
level. Much of the decline over the past century
no doubt reflects the growing efficiency of our
financial system. But it is difficult to believe that
many of the banks operating over recent decades
would have been able to expand their assets so
much, with so little additional investment by
their owners, were it not for the depositors'
perception that, despite the relatively small capital buffer, their risks were minimal. Regulatory
efforts over the past ten to fifteen years have
stabilized and partially reversed the sharp decline in ratios of bank equity to capital assets.
This has occurred despite the sizable write-off of
loans and the substantial buildup in loan-loss
reserves in the last three years or so. But the
capital ratios of many banks are still too low.
Second, government assurances of the liquidity and availability of deposits have enabled
some banks with declining capital ratios to fund
riskier asset portfolios at a lower cost and on a
much larger scale, with governmental regulations
and supervision, rather than market processes,
the major constraint on risktaking. As a result,
more resources have been allocated to finance
risky projects than would have been dictated by
economic efficiency.
In brief, the subsidy implicit in our current
deposit insurance system has stimulated the
growth of banks and thrift institutions. In the
process the safety net has distorted market signals to depositors and bankers about the economics of the underlying transactions. This distortion has led depositors to be less cautious in
choosing among institutions and has induced
some owners and their managers to take excessive risk. In turn, the expanded lending to risky
ventures has required increased effort and resources by supervisors and regulators to monitor
and modify behavior.
But in reviewing the list of deficiencies of the
deposit insurance system, particularly if an increased role for depositor discipline is contemplated, we should not lose sight of the contribu
tion that deposit insurance has made to
macroeconomic stability. The existence and use
of the safety net have shielded the broader financial system and the real economy from instabilities in banking markets. More specifically, it has
protected the economy from the risk of deposit
runs, especially the risk of such runs spreading
from bank to bank, disrupting credit and payment flows and the level of trade and commerce.
Confidence in the stability of the banking and
payments system has been the major reason why
the United States has not suffered a financial
panic or systemic bank run in the last half
century.
There are thus important reasons to take care
as we modify our deposit insurance system.
Reform is required. So is caution. The ideal is an
institutional framework that, to the extent possible, induces banks both to hold more capital and
to be managed as if there were no safety net,
while at the same time shielding unsophisticated
depositors and minimizing disruptions to credit
and payment flows.
The congressional increase in the deposit insurance level in 1980 from $40,000 to $100,000
was intended to permit depository institutions to
have access to deposits not subject to the rate
ceilings then in force. Disintermediation especially suggested the need to facilitate the access
of thrift institutions to funds that would substitute for the retail deposits that were at the time
bleeding off to higher-yielding market instruments at rates that thrift portfolios would not
permit them to match. Large time deposits—
defined by the regulators as those of more than
$100,000—were exempt from rate ceilings on the
thought that their size—more than twice the
then-insured level—implied sophisticated holders familiar with market instruments and the
evaluation of financial assets. It was argued that
an increase in deposit insurance coverage to the
level that would exempt such deposits from rate
ceilings would open up access by smaller and
weaker depository institutions to large-denomination time deposits that previously had been
limited to a smaller set of depositories for whom
the market was willing to provide significant
uninsured funding. Such funding at market rates,
it was contemplated, would not require raising
yields for the retail depositors willing to remain
1024 Federal Reserve Bulletin • December 1990
at lower rates. The extension of deposit insurance was thus an increase in a subsidy in lieu of
the removal of regulations that were phased out
some time later by the Depository Institutions
Deregulation Act. But, as in virtually all other
cases, the subsidy remained.
If we were starting from scratch, the Board
believes it would be difficult to make the case
that deposit insurance coverage should be as high
as its current $100,000 level. However, whatever
the merits of the 1980 increase in the deposit
insurance level from $40,000 to $100,000, it is
clear that the higher level of depositor protection
has been in place long enough to be fully capitalized in the market value of depository institutions and embedded in the financial decisions of
millions of households. The associated scale and
cost of funding have been incorporated into a
wide variety of bank and thrift decisions, including portfolio choices, staffing, branch structure,
and marketing strategy. Consequently, a return
to lower deposit insurance coverage—like any
tightening of the safety net—would reduce insured depository market values and involve significant transition costs. It is one thing initially to
offer and then to maintain a smaller degree of
insurance coverage, and quite another to reimpose on the existing system a lower level of
insurance, with its associated readjustment and
unwinding costs. This is why the granting of
subsidies by the Congress should be considered
so carefully: They not only distort the allocation
of resources but also are extremely difficult to
eliminate, imposing substantial transition costs
on the direct and indirect beneficiaries. For such
reasons, the Board has concluded that, should
the Congress decide to lower deposit insurance
limits, a meaningful transition period would be
needed.
Another relevant factor that should be considered in evaluating the $100,000 insurance limit is
the distribution of deposit holders by size of
account. Unfortunately, data to analyze this issue by individual account holder do not exist.
However, we have been able to use data collected on an individual household basis in our
1983 Survey of Consumer Finances to estimate
the distribution of account holders. While these
data are seven years old, they are the best
available until results from our 1989 Survey of
Consumer Finances become available this fall. I
have attached as an appendix to this statement
summary tables and descriptive text of the 1983
survey results. 1 Briefly, the survey suggests that
in 1983 between 1.0 and 1.5 percent of U.S.
households held deposit balances in excess of
$100,000. The demographic characteristics of
these account holders suggest that they are
mainly older, retired citizens with most of their
financial assets in insured accounts. These characteristics of heads of households owning deposits are remarkably stable as the size of deposits
declines to $50,000.
A 1988 survey of small and medium-sized
businesses—described in the second appendix to
this statement—suggests that 7.1 percent of such
businesses had at least one account in excess of
$100,000. These firms are generally of modest
size: Those with uninsured deposits had median
sales of $3.2 million, had less than fifty employees, and more than 10 percent of these entities
were proprietorships or partnerships. The 1988
small business survey suggests a sharp drop-off
in the size of firms as the maximum deposit
declines to, say, $50,000.
Some have suggested a reduction of deposit
insurance to that level, and the available evidence suggests that persons and small businesses
with $50,000 of deposits would probably be as
capable as current depositors with more than
$100,000 of assessing the health of their banks or
thrift institutions. As I noted, the demographics
of the two household groups are similar, although
the business units with balances between $50,000
and $100,000 have significantly smaller scale than
those with balances of more than $100,000. In
addition, it is arguable that, should the insured
deposit limit be reduced to $50,000, and policies
adopted that make losses by uninsured depositors much more likely than they are today,
uninsured depositors with a strong preference for
safety would be able to purchase evaluations of
banks and thrift institutions from professional
analysts. Such depositors would also have access
1. The attachments to this statement are available upon
request from Publications Services, mail stop 138, Board of
Governors of the Federal Reserve System, Washington, D.C.
20051.
Statements to the Congress
to alternative safe investments, especially Treasury securities.
Nevertheless, the characteristics of households and small businesses with deposits between $50,000 and $100,000 do not suggest that
they, compared with many other market participants, have the most resources and greatest
abilities to bring market discipline to bear on
depository institutions. Thus it seems reasonable
to question whether such depositors should be
assigned a key role in deposit insurance reform.
Moreover, as discussed above, the benefits of
lowering deposit insurance coverage at this time
must be balanced against the readjustment and
unwinding costs imposed on individuals, institutions, and markets that have adapted to the
$100,000 deposit insurance level.
A decision by the Congress to leave the
$100,000 limit unchanged, however, should not
preclude other reforms that would reduce current
inequities in, and abuses of, the deposit insurance system, often thwarting its purpose. Serious
study should be devoted to the cost and effectiveness of policing the $100,000 limit so that
multiple accounts are not used to obtain more
protection for individual depositors than the
Congress intends. We at the Federal Reserve
believe that it is administratively feasible—but
not costless—to establish controls on the number
and dollar value of insured accounts per individual at one depository institution, at all institutions in the same holding company, and perhaps—at sharply rising cost and complexity—
even across unrelated depositories. But we are
concerned about the cost and administrative
complexity of such schemes and would urge the
careful weighing of benefits and costs before
adopting any specific plan.
The same study could consider the desirability
of limiting pass-through deposit insurance—under which up to $100,000 of insurance protection
is now explicitly extended to each of the multiple
beneficiaries of some large and otherwise uninsured deposits. Brokered accounts of less than
$100,000 also have been used to abuse deposit
insurance protection, particularly by undercapitalized institutions. However, the study should
keep in mind the power that the Congress has
already provided the agencies to constrain misuse of brokered accounts.
1025
No matter what the Congress decides on deposit insurance limits, we must be cautious of our
treatment of uninsured depositors—whether defined as those in excess of $50,000 or $100,000.
Such depositors should be expected to assess the
quality of their bank deposits just as they are
expected to evaluate any other financial asset
they purchase. Earlier I noted that our goal
should be for banks to operate as much as
possible as if there were no safety net. In fact,
runs of uninsured deposits from banks under
stress have become commonplace.
So far, the pressure transmitted from such
episodes to other banks whose strength may be
in doubt has been minimal. Nevertheless, the
clear response pattern of uninsured depositors to
protect themselves by withdrawing their deposits
from a bank under pressure raises the very real
risk that in a stressful environment the flight to
quality could precipitate wider financial market
and payments distortions. These systemic effects
could easily feed back to the real economy, no
matter how open the discount window and how
expansive open market operations. Thus, while
deposits in excess of insurance limits should not
be protected by the safety net at any bank,
reforms designed to rely mainly on increased
market discipline by uninsured depositors raise
serious stability concerns.
An example of one such approach is depositor
coinsurance or a deductible under which a depositor at a failed institution receives most, but
not all, of his or her deposit in excess of a
reduced (or the current) insurance limit. This
option has some attractions, coupling depositor
market discipline with relatively modest possible
losses to depositors. The Board believes, however, that an explicit policy that requires imposition of uninsured depositor loss—no matter
how small—is likely to increase the risk of depositor runs and to exacerbate the depositor
response to rumors.
Another option to rely more on private-market
incentives without necessarily reducing the size
of insurance coverage is the use of private deposit insurance as a replacement for FDIC insurance. This option would require, of course, that
all relevant supervisory information—much of
which is now held confidential—be shared with
private insurers who would be obligated to use
1026 Federal Reserve Bulletin • December 1990
that information only to evaluate the risk of
depositor insurance and not for the purposes of
adjusting any of their own portfolio options. In
addition, it is clearly unreasonable to impose on
private insurers any macrostability responsibilities in their commercial underwriting of deposit
insurance. Private insurers' withdrawal of coverage in a weakening economy, or their unwillingness to forebear in such circumstances would be
understandable but counterproductive. Private
insurers' inability to meet their obligations after
an underwriting error would be disruptive at best
and involve taxpayer responsibility at worst.
Private insurance and public responsibility unfortunately are not always compatible. Many of
these concerns are mitigated if private insurance
is used as a supplement to FDIC insurance, say
to cover a coinsurance portion above some minimum. However, we would remain concerned
about mutual assurance among groups of banks
who would seek to evaluate each other's risk
exposure and discipline overly risky entities by
expulsion from their mutual guarantee syndicate.
In addition, a system of mutual guarantees by
banks could raise serious anticompetitive issues.
There has also been support for the increased
use of subordinated debentures in the capital
structure of banking organizations. Intriguing
attractions of this option are the thoughts that
nonrunnable, but serially maturing, debt would
provide both enhanced market discipline and a
periodic market evaluation of the bank. The
Board continues to support the use of subordinated debt for these reasons, as well as the fact
that it provides supplementary capital to act as
an additional buffer to the FDIC over and above
that provided by the owners' equity capital. But,
in our view, subordinated debentures can only be
supporting players and cannot be awarded the
central role in reform. This is a limited source of
capital and one that may prove difficult and
expensive to obtain when advertised as having
limited returns like debt, but whose holders are
expected to absorb losses for the FDIC like
equity. Adding features to make it more attractive adds complications that perhaps are best met
directly by additional pure equity and other reforms.
A promising approach that seeks to simulate
market discipline with minimal stability implica-
tions is the application of risk-based deposit
insurance premiums by the FDIC. The idea is to
make the price of insurance a function of the
bank's risk, reducing the subsidy to risktaking
and spreading the cost of insurance more fairly
across depository institutions. In principle, this
approach has many attractive characteristics,
and could be designed to augment risk-based
capital. For example, banks with high risk-based
capital ratios might be charged lower insurance
premiums. But the range of premiums necessary
to induce genuine behavioral changes in portfolio
management might well be many multiples of the
existing premium, thereby raising practical concerns about its application. Risk-based premiums
also would have to be designed with some degree
of complexity if they are to be fair and if unintended incentives are to be avoided. In any
event, the potential additional benefits on top of
an internationally negotiated risk-based capital
system, while positive, require further evaluation.
Another approach that has induced increasing
interest is the insured narrow bank. Such an
institution would invest only in high quality,
short-maturity, liquid investments, recovering its
costs for checking accounts and wire transfers
from user fees. The narrow bank would thus
require drastic institutional changes, especially
for thousands of our smaller banks and for virtually all households using checking accounts.
Movement from the present structure for delivery of many bank services would be difficult and
costly, placing U.S. banks at a disadvantage
internationally. In addition, this approach might
shift and possibly focus systemic risk on larger
banks. Banking organizations would have to locate their business and household credit operations in nonbank affiliates funded by uninsured
deposits and borrowings raised in money and
capital markets. Only larger organizations could
fund in this way, and these units, unless financed
longer term than banks today, would, even with
the likely higher capital ratio imposed on them by
the market, be subject to the same risks of
creditor runs that face uninsured banks, with all
of the associated systemic implications. If this
were the case, we might end up with the same set
of challenges we face today, refocused on a
different set of institutions. We at the Board
Statements to the Congress
believe that while the notion of a narrow bank to
insulate the insurance fund is intriguing, in our
judgment further study of these systemic and
operational implications is required.
If, in fact, proposals that rely on uninsured
depositor discipline, private insurance, subordinated debentures, risk-based premiums, and
structural changes in the delivery of bank services raise significant difficulties, reform should
then look to other ways to curb banks' risk
appetites, and to limit the likelihood that the
deposit insurance fund, and possibly the taxpayer, will be called on to protect depositors.
The Board believes that the most promising
approach is to reform both bank capital and
supervisory policies. This would build upon the
groundwork laid in the Financial Institution Reform, Recovery, and Enforcement Act of 1989
(FIRREA), in which the Congress recognized as
key components of a sound banking system the
essentiality of strong capital plus effective supervisory controls. Both would be designed to reduce the value of the insurance subsidy. Neither
would rule out either concurrent or subsequent
additions to deposit insurance reform, such as
the changes discussed previously, other proposals, or new approaches that may emerge in the
years ahead. In fact, higher capital, by reducing
the need for, and thereby the value of, deposit
insurance would make subsequent reform easier.
There would be less at stake for the participants
in the system.
At the end of this year, the phase-in to the
International Capital Standards under the Basle
Accord will begin. This risk-based capital approach provides a framework for incorporating
portfolio and off-balance-sheet risk into capital
calculations. Most U.S. banks have already
made the adjustment required for the fully
phased-in standard that will be effective at the
end of 1992. However, the prospect of an increasingly competitive environment suggests
that the minimum level of capital called for by the
1992 requirements may not be adequate, especially for institutions that want to take on additional activities. As a result of the safety net, too
many banking organizations, in our judgment,
have traveled too far down the road of operating
with modest capital levels. It may well be necessary to retrace our steps and begin purposefully
1027
to move to capital requirements that would, over
time, be more consistent with what the market
would require if the safety net were more modest. The argument for more capital is strengthened by the necessity to provide banking organizations with a wider range of service options in
an increasingly competitive world. Indeed, projections of the competitive pressures only intensify the view that if our financial institutions are
to be among the strongest in the world, let alone
avoid an extension of the taxpayers' obligation to
even more institutions, we must increase capital
requirements. Our international agreements under the Basle Accord permit us to do so.
There are three objectives of a higher capital
requirement. First, higher capital would
strengthen the incentives of bank owners and
managers to evaluate more prudently the risks
and benefits of portfolio choices because more of
their money would be at risk. In effect, the moral
hazard risk of deposit insurance would be reduced. Second, higher capital levels would create a larger buffer between the mistakes of bank
owners and managers and the need to draw on
the deposit insurance fund. For too many institutions, that buffer has been too low in recent
years. The key to creating incentives to behave
as the market would dictate, and at the same time
creating these buffers or shock absorbers, is to
require that those who would profit from an
institution's success have the appropriate
amount of their own capital at risk. Third, requiring higher capital imposes on bank managers an
additional market test. They must convince investors that the expected returns justify the
commitment of risk capital. Those banks unable
to do so would not be able to expand.
We are in the process in the Federal Reserve
System of developing more specific capital proposals, including appropriate transition arrangements designed to minimize disruptions. However, at the outset I would like to anticipate
several criticisms. For many banks, raising significant new capital will be neither easy nor
cheap. Maintaining return on equity will be more
difficult, and those foreign banks that only adhere
to the Basle minimums may have lower capital
costs relative to some U.S. banks. Higher capital
requirements also will tend to accelerate the
move toward bank consolidation and slow bank
1028 Federal Reserve Bulletin • December 1990
asset growth. However, these concerns must be
balanced against the increasing need for reform
now, the difficulties with all the other options,
and both the desire of and necessity for banking
organizations to broaden their scope of activities
to operate successfully.
More generally, many of the arguments about
the competitive disadvantages of higher capital
requirements are shortsighted. Highly leveraged
banks are less able to respond to rapidly changing situations. In fact, well-capitalized banks are
the ones best positioned to be successful in the
establishment of domestic and foreign long-term
relationships, to be the most attractive counterparties for a large number of financial transactions and guarantees, and to expand their business activities to meet new opportunities and
changing circumstances. Indeed, many successful U.S. and foreign institutions would today
meet substantially increased risk-based capital
standards. In addition, the evidence of recent
years suggests that U.S. banks can raise sizable
equity. The dollar volume of new stock issues by
banking organizations has grown at a greater rate
since the late 1970s than the total dollar volume
of new issues by all domestic corporate firms.
The recent declines in bank stock prices, reflecting market concerns about the quality of
bank assets, will make the capital building process more difficult and costly. However, over
time, banks with sound management policies will
be able to continue to build their capital base.
Higher capital standards should go a long way
toward inducing marketlike behavior by banks.
However, the Board believes that, so long as a
significant safety net exists, additional inducements will be needed through an intensification
of supervisory efforts to deter banks from maintaining return on equity by acquiring riskier
assets. When it is not already the practice, full
in-bank supervisory reviews—focusing on asset
portfolios and oflf-balance-sheet commitments—
should occur at least annually, and the results of
such examinations should promptly be shared
with the board of directors of the bank and used
to evaluate the adequacy of the bank's capital.
The examiner should be convinced after a rigorous and deliberate review that the loan-loss reserves are consistent with the quality of the
portfolio. If they are not, the examiner should
insist that additional reserves be created with an
associated reduction in the earnings or equity
capital of the bank.
This method of adjusting and measuring capital
by reliance on examiner loan evaluations does
not depend on market value accounting to adjust
the quality of the assets. Some day, perhaps, we
may be able to apply generally accepted market
value accounting precepts to both the assets and
liabilities of a financial going concern with a wide
spectrum of financial assets and liabilities. But
the Board is not comfortable with the process as
it has developed so far, either regarding the
ability of market value accounting to reflect
accurately market values over reasonable periods or to avoid being overly sensitive to shortrun events. For most banks, loans are the predominant asset, assets that do not have ready
secondary markets but that the examiners can
evaluate in each of the proposed annual in-bank
supervisory reviews. We at the Federal Reserve
believe that the examiners' classification of loan
quality should, as I noted, be fully reflected in the
banks' loan-loss reserves by a diversion of earnings or a reduction in capital. If the resultant
capital is not consistent with minimum capital
standards, the board of directors and the bank's
regulators should begin the process of requiring
the bank either to reduce those assets or to
rebuild equity capital.
If credible capital-raising commitments are not
forthcoming, and if those commitments are not
promptly met, the authorities should pursue such
responses as lowered dividends, slower asset
growth or perhaps even asset contraction, restrictions on the use of insured brokered deposits, if any, and divestiture of affiliates with the
resources used to recapitalize the bank. What is
important is that the supervisory responses occur
promptly and firmly and that they be anticipated
by the bank. This progressive discipline or
prompt corrective action of a bank with inadequate capital builds on our current bank supervisory procedures and is designed to simulate
market pressures from risktaking—to link more
closely excessive risktaking with its costs—
without creating market disruptions. It is also
intended to help preserve the franchise value of a
going concern by acting early and quickly to
restore a depository to financial health. In this
Statements to the Congress
way, the precipitous drop in value that normally
occurs when a firm is placed in conservatorship
or receivership would, for the large majority of
cases, be avoided.
While some flexibility is certainly required in
this approach, the Board believes that there must
be a prescribed set of responses and a presumption that these responses will be applied unless
the regulator determines that the circumstances
do not warrant them. Even though prompt corrective action implies some limit on the discretion of supervisors to delay for reasons that they
perceive to be in the public interest, the Board is
of the opinion that it would be a mistake to
eliminate completely the discretion of the regulator.
Accordingly, the Board believes that a system
that combined a statutorily prescribed course of
action with an allowance for regulatory flexibility
would result in meaningful prompt resolution.
For example, if a depository institution failed to
meet minimum capital requirements established
by its primary regulatory agency, the agency
might be required by statute to take certain
remedial action unless it determined on the basis
of particular circumstances that such action was
not required. The presumption would thus be
shifted toward supervisory action, and delay
would require an affirmative act by the regulatory
agency.
The prescribed remedial action required in a
given case would be dependent upon the adequacy of the institution's capital. As the capital
fell below established levels, the supervisor
could be required, for example, to order the
institution to formulate a capital plan, limit its
growth, limit or eliminate dividends, or divest
certain nonbank affiliates. If capital were seriously depleted, the supervisor could require a
merger, sale, conservatorship, or liquidation.
In adopting such a statutory framework, the
Congress should consider designing the system
so that forced mergers, divestitures, and, when
necessary, conservatorships could be required
while there is still positive equity capital in the
depository institution. While existing stockholders should be given a reasonable period of time to
correct deteriorating capital positions, the Congress should specifically provide the bank regulators with the clear authority, and therefore
1029
explicit support, to act well before technical
insolvency to minimize the ultimate resolution
costs. The presence of positive equity capital,
even if at low levels, when combined with any
tier 2 capital, would limit reorganization and
liquidation costs.
In the Board's view, most of the remedial
actions discussed above can be taken, and have
been taken, by bank regulators under the current
legal framework. Under current law, however,
action is discretionary and dependent upon a
showing of unsafe or unsound conditions or a
violation of law, and implementation of a supervisory remedial action can be extended over a
protracted period of time when the depository
institution contests the regulator's determination. What is needed is legislation that would
permit a systematic program of progressive action based on the capital of the institution, instead of requiring the regulator to determine on a
case-by-case basis, as a precondition to remedial
action, that an unsafe or unsound practice exists.
This program would introduce a greater level of
consistency of treatment into the supervisory
process, place investors and managers on notice
regarding the expected supervisory response to
falling capital levels, and reduce the likelihood of
protracted administrative actions challenging the
regulator's actions.
The Board is in the process of developing the
parameters, processes, and procedures for
prompt corrective action. One of the principles
guiding our efforts is the need to balance rules
with discretion. In addition, as is the case for
higher capital standards, the Board is mindful of
the need for an appropriate transition period
before fully implementing such a change in supervisory policy.
Higher capital and prompt corrective action
would increase the cost and reduce the availability of credit from insured institutions to riskier
borrowers. In effect, our proposal would reduce
the incentive some banks currently have to overinvest in risky credits at loan rates that do not
fully reflect the risks involved. This implies that
the organizers of speculative and riskier ventures
will have to restructure their borrowing plans,
including possibly paying more for their credit,
or seek financing from noninsured entities. Some
borrowers may find their proposals no longer
1030 Federal Reserve Bulletin • December 1990
viable. However, it is just such financing by
some insured institutions that has caused so
many of the current difficulties, and it is one of
the objectives of our proposals to cause depositories to reconsider the economics of such credits. As insured institutions reevaluate the riskreturn tradeoff, they are likely to be more
interested in credit extensions to less risky borrowers, increasing the economic efficiency of our
resource allocation.
Despite their tendency to raise the average
level of bank asset quality, higher capital requirements and prompt corrective action will not
eliminate bank failures. An insurance fund will
still be needed, but we believe that, with a fund
of reasonable size, the risk to taxpayers should
be reduced substantially. As I have noted, higher
capital requirements and prompt corrective action imply greater caution in bank asset choices
and a higher cushion to the FDIC to absorb bank
losses. In addition, an enhanced supervisory
approach will not permit deteriorating positions
to accumulate.
But until these procedures have been adopted
and the banking system has adjusted to them,
circumstances could put the existing insurance
fund under severe pressure. As Chairman
Seidman has indicated, the fund is already operating under stress, as its reserves have declined
in recent years and n o w stand, as a percentage of
insured deposits, at their lowest level in history.
At the same time, there remain all too many
problems in the banking system, problems that
have been growing of late as many banks, including many larger banks, have been experiencing a
deterioration in the quality of their loan portfolios, particularly real estate loans. It thus seems
clear that the insurance fund likely will remain
under stress for some time to come. Moreover,
pressures would intensify if real estate market
conditions were to weaken further or a recession
were to develop in the general economy.
It should, however, be clearly underlined that
the size or adequacy of the insurance fund does
not change the quality of the deposit insurance
guarantee made by the federal government; it
does allocate the cost of meeting any guarantee
between the banking industry, which pays the
insurance premiums, and the taxpayers as a
whole. It should, in our view, be the policy of the
government to minimize the risk to taxpayers of
the deposit insurance guarantee, and we believe
that our proposal does that. While some increase
in insurance premiums is in all likelihood necessary, we must be concerned that attempts to
accomplish this end by substantially higher insurance premiums may well end up—especially if
accompanied by higher capital requirements—
simply making deposits so unattractive that
banks are unable to compete. Indeed, the Board
is concerned that the levels of premiums contemplated in some quarters will exacerbate both the
short- and the long-run problem by reducing the
profitability of banks, and hence their ability to
attract capital. Avoiding taxpayer costs and
maintaining a competitive banking system are
just two more reasons why basic deposit insurance reform is so urgent.
Among the deposit insurance reforms that
might be considered on the basis of both strengthening the insurance fund and fairness to smaller
and regional banks is the assessment of insurance
premiums on the foreign branch deposits of U.S.
banks. A substantial proportion of the deposits of
the largest U.S. banks are booked at branches
outside the United States, including offshore centers in the Caribbean. Assessing such deposits
could yield significant revenue for the FDIC.
However, foreign deposits may be quite sensitive
to a small decline in their yields. Thus imposing
premiums on them could lead to deposit withdrawals and funding problems at some U.S. banking organizations and possibly inhibit the ability of
these organizations to raise capital.
Even if no adjustment is made in the insurance
assessment on foreign deposits, held almost
solely by large banks, other deposit insurance
reforms should be equally applicable to banks of
all sizes. No observer is comfortable with the
inequities and adverse incentives of an explicit or
implicit program that penalizes depositors, creditors, and owners of smaller banks more than
those of larger ones. The Board believes that no
bank should assume that its scale insulates it
from market discipline, nor should any depositor
with deposits in excess of the insurance limit at
the largest of U.S. banks assume that he or she
faces no loss should their bank fail.
Nevertheless, it is clear that there may be
some banks, at some particular times, whose
Statements to the Congress
collapse and liquidation would be excessively
disruptive to the financial system. But it is only
under the very special conditions, which should
be relatively rare, of significant and unavoidable
risk to the financial system that our policies for
resolving failed or failing institutions should be
relaxed. The benefits from the avoidance of a
contagious loss of confidence in the financial
system accrue to us all. But included in the cost
of such action is the loss of market discipline that
would result if large banks and their customers
presume a kind of exemption from loss of their
funds. The Board's policies of prompt corrective
action and higher capital are designed to minimize
these costs. Under these policies, the presumption should always be that prompt and predictable
supervisory action will be taken. For no bank is
ever too large or too small to escape the application of the same prompt corrective action standards applied to other banks. Any bank can be
required to rebuild its capital to adequate levels
and, if it does not, be required to contract its
assets, divest affiliates, cut its dividends, change
its management, sell or close offices, and the
resultant smaller entity can be merged or sold to
another institution with the resources to recapitalize it. If this is not possible, the entity can be
placed in conservatorship until it is.
It is, by the way, the largest U.S. banks that
would be required under our proposals to raise
the most additional capital, both absolutely and
proportionally. Most banks with assets of less
than $ 1 billion already meet capital requirements
considerably above the fully phased-in Basle
Capital Accord minimums. Also, it bears emphasizing that no deposit insurance reform that truly
reduces the subsidy existing in the current system will be costless for banks. The issue really is
one of achieving maximum benefit from reform at
minimum cost. We believe that our proposals
achieve this goal.
1031
In summary, events have made it clear that we
ought not to permit banks, because of their
access to the safety net, to take excessive risk
with inadequate capital. Even if we were to
ignore the potential taxpayer costs, we ought not
to permit a system that is so inconsistent with
efficient market behavior. In the process of reform, however, we should be certain we consider
carefully the implications for macroeconomic
stability. The Board believes that higher capital
and prompt corrective action by supervisors to
resolve problems will go a long way to eliminate
excessive risktaking by insured institutions, and
would not preclude additional deposit insurance
reform, now or later. Finally, in considering all
proposals, we should remind ourselves that our
objective is a strong and stable financial system
that can deliver the best services at the lowest
cost and compete around the world without
taxpayer support. This requires the modernization of our financial system and the weaning of
some institutions from the unintended benefits
that accompany the safety net. Higher capital
requirements may well mean a relatively leaner
and more efficient banking system, and they will
certainly mean one with reduced inclinations
toward risk.
As I noted in my opening remarks, the Board
believes that these reforms should be coupled
with the modernization of our financial system.
As we address reductions in the subsidy to banks
from deposit insurance, we should also authorize
wider activities for well-capitalized banking organizations and eliminate the outdated statutes
that prohibit banks from delivering interstate
services in the most cost-effective way—through
branching. These combined reforms will go a
long way toward ensuring a safer and more
efficient financial system and lay the groundwork
for other modifications in the safety net in the
years ahead.
•
Additional statement
follows.
1032 Federal Reserve Bulletin • December 1990
Statement by William Taylor, Staff Director,
Division of Banking Supervision and Regulation,
Board of Governors of the Federal Reserve System, before the Committee on Banking, Finance
and Urban Affairs, U.S. House of Representatives, October 16, 1990.
I appreciate the opportunity to testify on the role
of the Federal Reserve in the supervision of
foreign banks operating in the United States. The
testimony of the Federal Reserve Bank of Atlanta
discusses in some detail the actions taken by the
Federal Reserve to deal with the problems at the
Atlanta agency of Banca Nazionale del Lavoro
(BNL). Therefore, I will focus more generally on
the Federal Reserve's role in supervising the U.S.
operations of foreign banks, referring to the BNL
case to show how this authority was actually used
in a particular situation.
The Federal Reserve's authority and responsibility for supervising the U.S. operations of
foreign banks are derived primarily from two
statutes, the Bank Holding Company Act and the
International Banking Act of 1978 (IBA). Any
foreign bank that owns a U.S. bank is subject to
the Bank Holding Company Act. The IBA for the
first time established federal jurisdiction over the
U.S. operations of foreign banks that have
branches or agencies in the United States but do
not own a U.S. bank and applied certain provisions of the Bank Holding Company Act to these
organizations. Thus, the IBA established an
overall framework for regulating the full range of
activities of foreign banks in the United States
and provided for a federal role in the supervision
of branches and agencies of foreign banks. Before the passage of the IBA, the operations of
U.S. branches and agencies of foreign banks
were licensed and supervised solely by state
banking authorities.
Since I have been asked to focus on the supervision of branches and agencies, I will discuss
principally the Board's responsibilities under the
IBA. However, the two acts need to be looked at
in tandem. For example, besides operating
branches and agencies in the United States, BNL
was a large issuer of commercial paper through a
U.S. nonbank subsidiary. In the case of this
company, the Federal Reserve's supervisory au-
thority arose from the application by the IBA of
part of the Bank Holding Company Act to BNL.
With the enactment of the IBA, the Congress
established a federal role in the licensing and
supervision of branches and agencies of foreign
banks that paralleled the federal government's
role in the dual banking system. Foreign banks
were given the option of establishing a banking
office in the United States by obtaining either a
federal license from the Office of the Comptroller
of the Currency (OCC) or a license from one of
the various states. The IBA permits multiple
offices to be established using either state or
federal licenses or both.
Federally licensed offices are supervised by the
OCC and state-licensed offices by the states. As is
the case with banks, state-licensed offices are also
subject to some federal supervision, by the Federal Deposit Insurance Corporation (FDIC), if the
branches have insured deposits, or the Federal
Reserve for uninsured state-licensed offices. It
should be noted, however, that unlike banks, the
vast majority of branches and agencies of foreign
banks, including those of BNL, are not insured by
the FDIC and do not accept consumer deposits.
The Congress recognized at the time of enactment of the IBA that many foreign banks already
operated branches or agencies in a number of
states and that the trend of operating under a
number of different licenses could be expected to
continue. Therefore, the Congress determined
that there should be one agency responsible for
overseeing the totality of a foreign bank's operations in the United States. The Federal Reserve
was given this umbrella supervisory authority.
To carry out this responsibility, the Federal
Reserve was given residual examination authority over all U.S. branches and agencies and the
authority to obtain information from the foreign
parent. The Federal Reserve also has the authority to undertake necessary supervisory actions
against the foreign banking organization and its
various U.S. offices.
The Congress, nevertheless, instructed the
Board to rely to the maximum extent possible
upon the examinations conducted by the appropriate licensing authority and the FDIC. The
Federal Reserve has made extensive use of the
examination reports of other supervisors, and
there is a high degree of cooperation and consul-
Statements to the Congress
tation among the various supervisory agencies at
both the state and federal levels.
The Federal Reserve has exercised its authority by establishing a regular reporting system that
covers all of the U.S. banking operations of
foreign banks, working with the other supervisors to set examination standards, reviewing all
examination reports of branches and agencies,
obtaining information on the condition of the
parent bank, meeting on a regular basis with the
foreign banks operating in the United States, and
taking enforcement actions when necessary. The
Federal Reserve has also worked with the other
federal bank regulatory agencies and the various
states to establish a common examination format
and with their cooperation has sought to assure
that each foreign branch or agency is examined at
least once every eighteen months, a schedule
that is basically being followed.
The Federal Reserve receives and reviews all
examination reports conducted by the other federal and state bank supervisors. It collects and
analyzes quarterly reports of condition and reports on foreign credit exposure from all
branches and agencies of foreign banks. Through
these and other means, the Federal Reserve
tracks the condition of all U.S. offices of a
foreign bank to assess the foreign bank's performance on a nationwide basis. The Federal Reserve also monitors the actions taken by other
supervisors to require foreign banks to correct
problems in particular offices, and undertakes
enforcement or other corrective actions of its
own when appropriate. In some cases, the Federal Reserve conducts examinations itself or participates in examinations conducted by other
supervisory agencies. In the case of BNL, our
practice had been to assign an examiner to the
examinations conducted by the State of Georgia.
The Federal Reserve's direct role in the examination process varies from state to state. Its role
depends on such factors as the importance of
foreign banks in a particular state, the examination resources of the states, and the experience of
the states in this area. For example, in California
the Federal Reserve Bank of San Francisco and
the state banking authority share the examination
work load by each conducting examinations of
particular offices in alternate years. In New York,
on the other hand, the examinations are currently
1033
conducted almost exclusively by the State of New
York. In Texas the Federal Reserve Bank of
Dallas conducts joint examinations with the state.
Similarly, in other states various arrangements
have been made depending on the circumstances.
In some states with a very small foreign presence
there is currently no direct Federal Reserve participation in the examination process.
The Federal Reserve also directly supervises
the U.S. nonbank financial operations of foreign
banks. Such activities require Board approval
under the Bank Holding Company Act. In acting
on such applications the Board reviews the condition of the foreign bank to make certain that it
can be a source of strength to its U.S.operations.
In addition, the Board reviews all of the existing
U.S. operations of the foreign bank in an effort to
assure that the overall operations of the foreign bank
in the United States are in satisfactory condition.
The Federal Reserve staff meets on a regular
basis with the management of foreign banks
operating in this country to discuss overall operations and to address problem areas. In addition,
the Federal Reserve discusses problems with the
home country supervisors.
It is important to keep in mind that branches
and agencies are not U.S. banks. A branch or
agency is an integral part of a foreign bank. The
operations of the U.S. branches and agencies
directly affect the condition of the whole bank
and in turn are affected by developments at the
head office and other branches. The Basle Concordat on supervising international banks recognizes this interdependence and emphasizes the
responsibility of the home country authority to
supervise the foreign branches and agencies of its
banks. The home country regulator is the authority most capable of supervising the overall solvency and activities of the foreign bank.
To summarize, in the BNL Atlanta case, the
State of Georgia examined the Atlanta agency of
BNL, with participation by the Federal Reserve.
The Federal Reserve was further responsible for
supervising the overall U.S. activities of BNL;
and the bank of Italy provided BNL with worldwide supervision.
I would now like to discuss how the Federal
Reserve used its umbrella oversight authority in
resolving the BNL problem in an orderly manner, and how it interacted with other supervisory
1034 Federal Reserve Bulletin • December 1990
authorities. 1 Let me say at the outset that once
we became aware of the possible size of the illicit
operations at BNL Atlanta, we recognized the
potential for a significant disruption of banking
markets. Therefore, cooperation among the authorities, both here and abroad, was essential in
dealing effectively with this case.
As to the origin and growth of the illicit operations in BNL Atlanta, this was a situation that
involved massive fraud in which a large number
of employees acted together to conceal the operation and deceive auditors and examiners. Books
and records concerning the illicit operations were
removed from the office by employees during
examinations and audits. Much of the work associated with these transactions was conducted
from employees' homes, and, of course, the
office did not report the illicit activities on reports
filed with the supervisory agencies.
The physical segregation of records, together
with the concerted efforts of key employees,
makes it extremely difficult for examiners to
uncover this type of illicit and fraudulent activity. Examiners also rely to a considerable extent
on internal and external auditors. In the BNL
Atlanta case, neither the internal auditors nor the
large U.S. accounting firm conducting the external audit uncovered the large off-book lending
and funding operation, although a 1988 audit
report by the New York branch of BNL did
criticize procedures at the Atlanta office.
Once the Federal Reserve became aware of the
problem in BNL Atlanta, it initiated actions to
determine the full scope of the problem, to assist
federal law enforcement personnel, and to ensure
that the problem did not disrupt the financial
system. After discussions with law enforcement
personnel, a decision was made to have the Federal Bureau of Investigation (FBI) seize the records of the Atlanta office late in the day on Friday,
August 4, 1989. The FBI agents were accompa-
1. The committee has requested information on the examination of U.S. offices of BNL and the Federal Reserve's role
in those examinations. Since 1985, there have been twentyfive examinations of BNL's offices in the United States. Eight
of these are Federal Reserve reports (including a joint report
with the State of New York) and seventeen are state reports.
Before the discovery of the recent fraud, the Atlanta office
was examined every year by the State of Georgia with limited
participation by the Federal Reserve Bank of Atlanta.
nied by Federal Reserve examiners who acted as
technical advisors to the agents. The Federal
Reserve also began an examination of the Atlanta
agency on that date. At approximately the same
time, Federal Reserve examiners began examinations of the other U.S. offices of BNL and its
commercial paper operation. State regulatory
agencies were informed that these examinations
had commenced and that there were problems in
the Atlanta office of BNL.
Earlier in the week, the Federal Reserve informed the Bank of Italy that there was an urgent
matter that the Federal Reserve needed to discuss. Senior Federal Reserve officials were dispatched to Rome to meet with officials of the Bank
of Italy. The Bank of Italy was notified that it was
likely that the Atlanta office of BNL had a large
unreported business and that federal authorities
were going to intervene on Friday, August 4. The
Federal Reserve also advised the Bank of Italy of
its concern that events might affect the dollar
liquidity of BNL. The need for secrecy was emphasized so as not to jeopardize the seizure of the
records by law enforcement personnel.
The Bank of Italy immediately undertook measures to make certain that the head office of BNL
took appropriate actions once the seizure of the
records was completed. The BNL official in
charge of operations for the whole bank was sent
to Atlanta and arrived on Sunday, August 6.
Other BNL personnel from Italy and New York
were also immediately dispatched to Atlanta.
BNL began marshalling dollar liquidity and
transferring liquid dollar assets to the New York
branch to meet any funding contingencies that
might arise. The Bank of Italy closely supervised
BNL's actions and dispatched its senior examination officers to Atlanta immediately.
To summarize, the Federal Reserve was able to
use the supervisory authority conferred by the
IBA to conduct simultaneous nationwide examinations of BNL's branches and agencies and to
inspect its commercial paper subsidiary. These
actions were taken on short notice and in a
manner consistent with the need to maintain the
secrecy necessary for the criminal investigation.
The Federal Reserve was able to discuss the
specific supervisory problem and its systemic
implications with the Bank of Italy in order for
Italian officials to make certain that BNL had
Statements to the Congress
sufficient dollar liquidity to service all of its dollar
liabilities. I might note that no Federal Reserve
funds were advanced to BNL. Through the Bank
of Italy, the Federal Reserve was able to ensure
that BNL acted promptly to place new management in the Atlanta office and to contain the
problem.
Once initial actions were taken, the Board
worked with the Bank of Italy and state examination agencies to document the full scope of the
problem and to identify the weaknesses in BNL's
internal controls that enabled the illicit operations
to develop undetected. In cooperation with the
Bank of Italy and state supervisory authorities,
corrective actions for BNL's U.S. offices were
identified and implemented. The Federal Reserve
has also continued to provide assistance to federal
law enforcement personnel when requested.
You have asked what additional authority the
Federal Reserve might need in this area. As the
actions described above illustrate, the IB A and
other statutes provide the Federal Reserve with
the broad authority needed to supervise the U.S.
operations of foreign banks and to respond to
potential crises. No further authority seems necessary in this area.
While audit and internal control standards can
be improved as the result of lessons learned from
the BNL experience, the operation of BNL Atlanta involved massive fraud accompanied by
false entries on the agency's books and false
reporting to the federal authorities. Good controls can generally defend against this type of
fraud by a single individual or a few individuals,
but when a number of people within an organization conspire to "cook the books" it becomes
much more problematic. More intensive monitoring and audits will help, but it is also important
to deter this type of activity by successful prosecution and punishment of those involved.
In this regard it has come to our attention that
some of the federal laws related to fraudulent
actions in banks of the type involved in this case
are not applicable to uninsured state licensed
branches and agencies of foreign banks. The
Federal Reserve believes that this situation
should be corrected and has already furnished
your committee with proposed legislation in this
area. I would urge that such legislation be
promptly adopted.
1035
This is not to say, however, that examination
procedures can remain static. Over the past few
years the Federal Reserve has been increasing its
role in the supervision of branches and agencies
as these entities have become more important
factors in the U.S. banking market. The testimony of the Federal Reserve Bank of Atlanta
describes how that Reserve Bank has increased
its examination efforts in Florida and Georgia,
two states in which the presence of branches and
agencies of foreign banks has grown rapidly. The
Federal Reserve Bank of New York is increasing
its examination resources to enable it to expand
its role as well. In addition, state authorities have
taken actions to increase their ability to supervise branches and agencies of foreign banks. A
special committee has been established under the
auspices of the Conference of State Bank Supervisors to review state policies and to increase
cooperation in this area among supervisors. The
Federal Reserve has met with members of this
committee to discuss examination matters of mutual interest. There are plans next year to have
concurrent examinations of all of the U.S.
branches and agencies of a select group of large
foreign banks to determine if there are significant
benefits to be derived from this type of examination format. In the international context, the Basle
Committee on Banking Supervision has discussed
the BNL case and its implications for the supervision of banks operating internationally.
The Federal Reserve intends to monitor
closely the effectiveness of all of these efforts in
view of the growing presence of foreign banks in
U.S. financial markets. Historically, as you are
no doubt aware, the principal focus of U.S.
regulators has been on insured U.S. institutions
given the presence of the federal safety net and
the potential liability represented by the existence of federal deposit insurance. As the role of
foreign banks in our markets evolves, however,
we need to continually review the adequacy of
the resources devoted to supervising these entities. The Federal Reserve will continue to work
closely with the other federal and state regulators
to ensure an adequate supervisory framework for
foreign banks in this country. If necessary and
appropriate, we will not hesitate to propose and
adopt further steps to strengthen federal oversight of the U.S. activities of foreign banks.
•
1036
Announcements
MEETING OF CONSUMER
COUNCIL
ADVISORY
The Federal Reserve Board announced that its
Consumer Advisory Council met on October 25.
The Council's function is to advise the Board on
the exercise of its responsibilities under the Consumer Credit Protection Act and on other matters on which the Board seeks its advice.
FEE SCHEDULES FOR SERVICES
BY FEDERAL RESERVE
BANKS
PROVIDED
The Federal Reserve Board announced on November 1, 1990, the 1991 fee schedules for services provided by the Reserve Banks. The majority of the 1991 fees are the same as those
currently imposed, and they generally become
effective January 1, 1991.
The fee schedules apply to check collection,
automated clearinghouse activities, wire transfers of funds and net settlement, definitive safekeeping, noncash collection, book-entry securities, and to electronic connections to the Federal
Reserve. The 1991 fee schedules are available
from the Reserve Banks.
The 1991 total costs for priced services, including float and the private sector adjustment factor
(PSAF), are projected to be $771.7 million. Total
revenue is estimated at $777.2 million, resulting
in a 100.7 percent recovery rate. The fees for
1991 are based on total costs, including the
PSAF, but excluding special project costs.
At the same time, the Board approved the 1991
PSAF for Reserve Bank priced services of $85.8
million, an increase of $6.4 million or 8.1 percent
from the $79.4 million targeted for 1990.
The PSAF is an allowance for the taxes that
would have been paid and the return on capital
that would have been provided had the Federal
Reserve's priced services been furnished by a
private business firm.
NOTIFICATION OF RECEIPT OF
THIRD-PARTY FUNDS ON FEDWIRE
The Federal Reserve Board has adopted a requirement that Reserve Banks notify by telephone all "off-line banks" of the receipt of
incoming third-party funds transfers on Fedwire.
An off-line bank is an institution that does not
have electronic access to Fedwire.
The majority of transfers to off-line banks are
currently not subject to telephone notice. Without telephone notice, the off-line receiving bank
is unable to credit its customer's account on the
day of the transfer.
About 45 percent of the institutions using Fedwire receive off-line transfers, but these transfers
account for less than 1 percent of total Fedwire
volume.
The required notice would also be provided for
settlement transfers and related nonvalue messages if the off-line receiving bank has notified its
Reserve Bank that it acts on behalf of a respondent institution. An off-line bank that does not
maintain an account for another depository institution will not be required to receive telephone
notice of incoming settlement transfers but could
request such notice as an optional service.
The off-line receiving bank will be assessed a
per-transfer surcharge (currently $4) for each
transfer for which the Reserve Bank attempted to
provide telephone notice. The new service will
become effective January 1, 1991.
REGULATION
J:
REVISION
The Federal Reserve Board approved on October 1, 1990, a comprehensive revision to Subpart
B of Regulation J (Collection of Checks and Other
Items and Wire Transfers of Funds), governing
funds transfers through Fedwire. The revision will
make Regulation J consistent with the new Article
4A of the Uniform Commercial Code, which
1037
governs the rights, responsibilities, and liabilities
of parties to wholesale funds transfers.
The revision to Subpart B becomes effective
January 1, 1991, and will accomplish the following:
• Provide a more comprehensive set of rules
for funds transfers involving Federal Reserve
Banks than is currently provided by Subpart B.
• Make Subpart B consistent with state laws
applicable to funds transfers as states adopt
Article 4A.
• Help to ensure that, subject to their central
banking responsibilities, Federal Reserve Banks
compete on an equitable basis with private-sector providers of funds-transfer services.
PROPOSED
ACTIONS
The Federal Reserve Board issued for public
comment on October 12, 1990, certain clarifications, modifications, and technical changes to the
Board's risk-based capital guidelines. Comment
is requested by December 17, 1990.
The Federal Reserve Board on October 5,
1990, extended the period to receive comments
on its proposed change to the pricing structure
for the Federal Reserve's Interdistrict Transportation Service. Comment must now be received
by January 18, 1991, instead of October 19, 1990.
PUBLICATION
OF NEW
REPORT
1983 Survey of Consumer
Design and Methods
Finances:
The Federal Reserve Board has published an
account of the consumer finance survey it cosponsored in 1983 with several other federal
agencies. The report, entitled 1983 Survey of
Consumer Finances: Design and Methods, covers the procedures used for editing the raw
survey responses, the statistical methods used
for imputing missing data, the construction of
new variables from the original variables, and
the addition of variables that have been created
by matching information from other data
sources. It also presents technical material on
the survey's design and weights and discusses
the comparability of other surveys with the
1983 work.
The narrative was previously available only
from the National Technical Information Service
as part of the 1983 Tech Manual and Codebook,
which also lists the set of survey variables developed at the Federal Reserve Board.
The twenty-five-page report is available upon
request from the Board's Publications Services,
mail stop 138, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.
1038
Record of Policy Actions
of the Federal Open Market Committee
MEETING HELD ON AUGUST 21, 1990
Domestic
Policy
Directive
The information reviewed at this meeting suggested that economic activity was continuing to
expand at a relatively slow pace. Growth in
exports and some expansion in consumer spending were supporting final demands. At the same
time, business capital spending appeared sluggish, and the demand for new housing had weakened further. Labor demand had softened on
balance since the spring and the unemployment
rate had risen recently, but labor costs showed
no sign of decelerating. Underlying trends in
inflation appeared to be little changed.
Total nonfarm payroll employment registered
a large decline in July after having risen considerably over the two previous months. Much of
the July drop resulted from layoffs of temporary
census workers; however, payrolls shrank in
manufacturing, construction, and business services, and hiring remained slow elsewhere. The
civilian unemployment rate rose to 5.5 percent in
July, just above the narrow range that had prevailed for an extended period. In contrast to the
employment data, hours worked by production
and nonsupervisory workers edged up in July,
and initial claims for unemployment insurance
continued to fluctuate narrowly around the average pace of the first half of the year.
After rising appreciably in the second quarter,
industrial production was unchanged in July.
Output of goods other than motor vehicles rose
at about the moderate pace evident thus far this
year. Total industrial capacity utilization retraced its June rise but remained somewhat
above its level at the start of the year. The
operating rate in manufacturing also slipped in
July, though it stayed in the narrow range that
had prevailed this year after an appreciable reduction in 1989.
After declining in earlier months, nominal retail sales rose considerably on balance over June
and July. There were substantial upward revisions to sales for both May and June; nevertheless, for the second quarter as a whole, gains in
total personal consumption expenditures appeared to have been relatively limited. In July,
housing starts fell for the sixth straight month.
Most of the decline was in multifamily units, but
starts in the single-family segment of the market
edged lower as sales of new homes continued
sluggish and inventories of unsold homes remained relatively large.
Shipments of nondefense capital goods rose
sharply in June after a decline, on balance, in
April and May; most of the gain in June reflected
higher outlays for aircraft and for office and computing equipment. Over the past four quarters,
however, equipment outlays had changed little as
increases in spending on computers had been
offset by reduced purchases of industrial equipment and motor vehicles. A net decline in the
nominal value of orders for nondefense capital
goods in recent months pointed to sluggishness in
equipment spending in the near term. Nonresidential construction activity strengthened in June,
especially for office buildings, but the downtrend
in permits and contracts for new construction
suggested continued softness in this sector. Business inventory investment had been moderate in
the second quarter, and there was no general
indication of inventory imbalances in relation to
sales. At manufacturing and wholesale establishments, inventories fell appreciably in June, and
the ratio of inventories to shipments edged lower.
At the retail level, nonauto stocks climbed somewhat further in June, but with recent gains in
sales, inventory-sales ratios dropped back after
widespread increases in the two previous months.
1039
The nominal deficit in U.S. merchandise trade
narrowed sharply in June. The value of exports
rose substantially from the May level, with most
of the increase occurring in civilian aircraft and
parts, consumer goods, and agricultural products. The value of imports was down somewhat;
about half of the decrease resulted from declines
in the price and quantity of oil imports. The trade
deficit for the second quarter was substantially
reduced from its first-quarter rate and was the
lowest quarterly average since 1983. Measures of
economic activity for the second quarter suggested that growth had remained robust in Japan
and West Germany but had slowed somewhat in
other major foreign industrial countries. Measured inflation rates were unchanged or had
declined slightly in major industrial nations other
than the United Kingdom, although the recent
rise in oil prices, among other factors, raised
concerns about renewed inflationary pressures.
Crude oil prices had risen sharply in spot
markets in the weeks before the Committee
meeting, largely in response to the Iraqi invasion
of Kuwait. Available aggregate measures of producer and consumer prices predated the increase
in oil prices, and these data suggested persisting
price pressures outside the food and energy
categories. Producer prices of finished goods
were little changed on balance in June and July as
declines in the prices of food and energy products offset a further rise in the prices of other
finished goods. Consumer prices rose appreciably further in July, reflecting an acceleration in
prices of nonfood, non-energy items. The latest
data on total labor costs indicated that hourly
compensation for private industry workers had
increased more rapidly in the twelve months
ended in June than in the year-earlier period.
At its meeting on July 2-3, 1990, the Committee adopted a directive that called for maintaining
the existing degree of pressure on reserve positions for at least a short period after the meeting
and that provided for some slight easing subsequently unless incoming data on the monetary
aggregates and the economy evidenced greater
strength. Accordingly, slightly greater reserve
restraint might be acceptable or somewhat lesser
reserve restraint would be acceptable during the
intermeeting period, depending on progress
toward price stability, the strength of the busi-
ness expansion, the behavior of the monetary
aggregates, and developments in foreign exchange and domestic financial markets. In the
circumstances, M2 and M3 were expected to
grow at annual rates of about 3 and 1 percent
respectively over the period from June through
September.
After the Committee meeting, open market
operations were directed initially at maintaining
unchanged reserve conditions. Later, in midJuly, pressures on reserve positions were eased
slightly as restrictions on credit supplies at
banks, signaled in part by lagging money growth,
suggested that credit conditions were tighter than
appropriate at a time when the economy already
was growing very slowly. Adjustment plus seasonal borrowing averaged about $500 million in
the three reserve maintenance periods completed
since the July meeting. In late July and early
August, technical adjustments were made to assumed levels of such borrowing to reflect the
continued upswing in seasonal borrowing. The
federal funds rate averaged about 8'A percent at
the time of the July meeting but, after the easing
of reserve conditions in mid-July, federal funds
traded around the 8 percent level. Most other
short-term interest rates had dropped somewhat
since the July meeting, largely in reaction to
easier reserve conditions but also to some extent
in reflection of expectations of some further
easing in light of additional indications of a
relatively sluggish economy. Bond yields had
remained unchanged on balance through the end
of July, but the invasion of Kuwait at the beginning of August and the associated rise in energy
prices propelled long-term rates upward. Broad
measures of stock prices, some of which had
reached record highs earlier in the intermeeting
interval, were off substantially on net over the
period.
The trade-weighted foreign exchange value of
the dollar in terms of the other G-10 currencies
declined considerably over the intermeeting period. Tighter monetary conditions in Japan and
West Germany and some easing of short-term
interest rates in the United States, along with
market perceptions that these divergent trends
might continue, contributed to downward pressures on the dollar. The dollar declined more
sharply against the German mark than the Japa-
1040 Federal Reserve Bulletin • December 1990
nese yen. Late in the intermeeting period, uncertainty associated with the Iraqi invasion of Kuwait provided a short-lived boost for the dollar.
M2 grew slowly in June and July, while M3
changed little; available data for August suggested that growth of both aggregates was rebounding. Growth of M2 and especially of M3
had been damped by the continuing contraction
of deposits at thrift institutions resulting from the
restructuring of the thrift industry. Through July,
expansion of both M2 and M3 was estimated to
be in the lower portions of their respective ranges
for 1990. Expansion of total domestic nonfinancial debt appeared to have been near the midpoint of the Committee's monitoring range.
The staff projection prepared for this meeting
recognized that the recent steep rise in oil prices
could have important adverse effects on economic activity and inflation. It was not possible,
though, to determine with any confidence how oil
prices might evolve over time, and this was
clouding further an already uncertain economic
outlook. Under a variety of plausible assumptions about oil prices, economic activity was
likely to expand over the balance of the year, but
at a weaker pace than had been forecast earlier.
The retarding effects of higher energy prices on
the growth of disposable incomes were expected
to damp consumer purchases of goods, notably
consumer durables, over the quarters immediately ahead. If the price of oil were to fall back
somewhat next year, a strengthening of disposable incomes would tend to boost economic
growth toward a pace that was closer to the
economy's long-run potential by the latter part of
next year. If oil prices were to stay at high levels,
however, the recovery in consumer spending and
economic growth would be delayed for several
quarters. In either event, the staff anticipated
considerable growth in exports over the next
several quarters in conjunction with continuing
economic expansion in some major foreign industrial nations and the depreciation that had
already occurred in the foreign exchange value of
the dollar. Business capital spending was projected to remain relatively sluggish in the quarters ahead, though expenditures on producers
durable equipment could strengthen were oil
prices to drop back and retail sales to improve.
Moderate restraint in expenditures at all levels of
government was assumed. The rise in oil prices
was expected to boost price inflation to an appreciable degree for the next few quarters; the
extent and duration of these effects would depend on the future behavior of oil prices, but the
adverse effect on inflation expectations and on
wage and price inflation over the longer run
would be limited by reduced pressures on resources.
In its discussion of the economic situation and
outlook, the Committee focused on both the state
of the economy before the increase in oil prices
and the likely consequences for real output and
inflation of that rise. Available data, which pertained to business conditions prior to the invasion of Kuwait, pointed to continuing slow economic growth, even though business activity was
slipping in various sectors of the economy and
some regions of the country. At the same time,
broad measures of prices and labor costs suggested that the underlying rate of inflation—
abstracting from swings in food and energy
costs—had not turned down despite slow monetary expansion and the apparent growth of the
economy at a pace below potential over the past
several quarters. For some members, these data
pointed to a relatively even balance, prior to the
surge in oil prices, between the risks of a weakening economy and rising inflation. For others, a
deterioration in consumer and business attitudes
even before the Iraqi invasion of Kuwait and the
indications of continuing restrictions on credit
availability at banks, among other factors, suggested that the risks had been tilted toward some
potential further weakening of the economy.
The steep rise in oil prices was expected to
have a retarding effect on economic activity
during the months immediately ahead and to
exacerbate inflationary pressures. The increase
in oil prices also added greatly to the uncertainties about the prospects for economic activity
and inflation over time, because the outcomes
would depend on the response of consumers to
reductions in real disposable incomes, the reaction of businesses to potentially lower sales, and
the extent of acceptance by workers of declines
in their real wages associated with a higher price
of oil. Nonetheless, in the absence of more
pronounced or long-lasting disturbances from
events in the Middle East, the members generally
Record of Policy Actions of the Federal Open Market Committee
felt that limited growth in economic activity
remained a reasonable expectation, and in the
circumstances they would anticipate some decline in the rate of inflation, though progress was
likely to occur only after a nearer-term setback.
In their review of business conditions in specific sectors of the economy and regions of the
country, members observed that continuing expansion in consumer spending and further
growth in net exports appeared likely to sustain
at least limited expansion in overall economic
activity. Revised data suggested that total retail
sales had been reasonably well maintained in
recent months despite mixed reports from different parts of the country. However, as evidenced by surveys conducted immediately after
the Iraqi invasion of Kuwait, consumer sentiment could deteriorate rapidly. Apparently, consumer attitudes already had been adversely affected by the softening in home prices and
worsening of employment prospects in many
parts of the country; moreover, higher costs for
energy were likely to limit any increase in discretionary spending. With regard to the prospects
for foreign trade, a number of members expressed some optimism that the nation's trade
balance would continue to improve, given the
outlook for further economic growth in a number
of major industrial countries. The report of a
substantial decline in the trade deficit for the
second quarter was viewed as an encouraging
sign, and contacts in many parts of the country
indicated that export demand was helping to
sustain manufacturing activity at many firms.
Higher oil prices would adversely affect foreign
economies, but many other countries had
trimmed their energy consumption considerably,
and the reduction in oil supplies, if it persisted,
should not disrupt in a major way the upward
momentum of their expansion.
On the other hand, the prospects for business
capital spending were less favorable, at least in
the absence of faster growth in final demand than
the members now anticipated. Business sentiment seemed to have deteriorated in several
parts of the country. Commercial construction
activity continued to be depressed by high vacancy rates in many areas and appeared to be
softening in some others where previously it had
been relatively well maintained. Housing con-
1041
struction in the view of some members might
weaken somewhat further before it began to
stabilize. With regard to the outlook for fiscal
policy, members were concerned that the prospects for a political compromise leading to a
substantial reduction in the federal budget deficit
had deteriorated as a consequence of the invasion of Kuwait. It might prove more difficult to
curb spending or to raise taxes in a period of
weak economic expansion or in conjunction with
any surge in military expenditures. At the state
and local level, by contrast, the worsening budgetary situation in many jurisdictions seemed
likely to induce spending curbs and higher taxes.
In the course of the Committee's discussion,
members commented on continuing indications
of tightened credit standards. The results of a
survey showed that credit availability had been
reduced since the spring, but some members
sensed that lending institutions as a group had
not tightened credit terms further in recent
weeks. Many lenders reported that they were
making credit readily available to good credit
risks, and it was clear that a sizable portion of the
weakness in lending could be attributed to reduced loan demand on the part of borrowers,
including consumers, rather than to a curtailed
supply of loans. Nonetheless, contacts in many
areas indicated that some business borrowers,
notably builders, were continuing to experience
serious problems in obtaining credit and that
riskier borrowers were facing more stringent
standards at banks at a time when markets for
securities of less than investment grade had
virtually disappeared. Members remained concerned about the exposure of many financial
institutions and of heavily indebted business
firms and individuals to adverse economic developments.
Turning to the outlook for inflation, the members continued to express disappointment over
the lack of evidence of a decline in the core rate
of inflation; of particular concern was the failure
of increases in labor costs to moderate. By some
measures, inflation could be judged to have worsened marginally even before the recent surge in
oil prices. The future course of oil prices was
highly uncertain, but the recent rise in these
prices would undoubtedly raise the measured
inflation rate in the period ahead. Moreover, the
1042 Federal Reserve Bulletin • December 1990
depreciation of the dollar over the course of
previous months would exert upward pressures
on prices. Whether these pressures from oil
prices and the dollar would be translated into
higher inflation rates over longer periods of time
would depend not only on their near-term passthrough into prices and wages but more fundamentally on their influence on inflation expectations. In this regard, the slack that seemed to be
developing in resource utilization, while regrettable in some respects, would help to forestall a
more permanent increase in wage and price inflation.
In the Committee's discussion of policy for the
weeks ahead, members commented that the
heightened uncertainties and the prospectively
less satisfactory performance of the economy
stemming from events in the Middle East had
greatly complicated the formulation of an effective monetary policy. Uncertainties about the
developments in the Middle East made it difficult
to judge an appropriate policy stance, and those
uncertainties had been reflected in unusually
volatile financial markets. More fundamentally,
with the surge in oil prices tending to weaken
economic activity while also intensifying inflationary pressures, an easing in policy would
incur the risk of overcompensating for potential
weakness in the economy at the expense of
greater inflation, while a tightening move to
counter inflation might stall an already weak
economic expansion. In these circumstances, the
members generally concluded that the Federal
Reserve could best contribute to the nation's
economic goals by fostering a stable policy environment. The prospective performance of the
economy was very likely to be dominated by
events that were outside the Committee's control, including not only developments in the
Middle East but decisions to be made with regard
to the federal budget deficit.
While acknowledging the current uncertainties
and policy limitations that the Committee was
facing, several members underscored the need to
avoid any paralysis of policy as conditions
evolved in the weeks and months ahead and
circumstances permitted an effective policy response. In the opinion of several members,
events appeared likely to unfold in a direction
that would require an easing of policy at some
point to counter weakening tendencies in the
economy that had been in train before the oil
price increase. The timing and circumstances of
any such easing would have to be weighed carefully, however, to avoid an unfavorable impact
on inflationary attitudes and associated upward
pressure on long-term interest rates, especially
since the dollar had been under downward pressure in the foreign exchange markets. A number
of other members viewed the risks to the economy as more evenly balanced. These members
saw a substantial risk of some intensification in
inflationary pressures, particularly in the context
of higher energy prices. The downward movement of the dollar since the fall of 1989, flat or
even mildly rising commodity prices, and the
now upward sloping yield curve argued for a
relatively restrictive monetary policy, pending
further developments. For the present, all the
members indicated that they could support a
steady policy, given the current uncertainties and
the possibility of unsettlement in foreign exchange and domestic financial markets.
In the course of the discussion, the members
took account of a staff analysis, which suggested
that, on the assumption of an unchanged degree
of reserve restraint, growth in M2 and M3 was
likely to pick up to some extent from the pace in
recent months, in part because of a narrowing in
the opportunity costs of holding assets included
in those monetary measures. Members noted
that the very recent strengthening of the monetary aggregates tended to reinforce the staff assessment and to diminish the case for any nearterm easing of reserve conditions, though it also
was recognized that some of the strength represented a greater preference for liquidity in an
uncertain environment. Given the particular difficulty of charting an appropriate course for
monetary policy in current circumstances, some
members suggested that the behavior of the
monetary aggregates needed to be monitored
with special care and that greater-than-usual emphasis should be given to fostering desired rates
of monetary growth.
While all the members could support an unchanged policy stance for at least some initial
period after today's meeting, their somewhat
differing assessments of the most likely course
for monetary policy were associated with some
Record of Policy Actions of the Federal Open Market Committee
differences in their views with regard to the
possible need to adjust reserve conditions later
during the intermeeting period. A majority indicated a preference for a directive that was tilted
toward potential easing. Some of these members
indicated that they had been leaning toward an
easing move prior to the events in the Middle
East, and they now felt that reserve conditions
should be eased promptly if conditions in domestic financial and foreign exchange markets provided an appropriate opportunity. Tightening
would be especially inappropriate in this view,
given the current indications of weaknesses in
the economy and the vulnerability of many financial institutions and heavily indebted borrowers
to higher interest costs. Other members acknowledged the threat of a deteriorating economy, but
because they also saw a considerable risk that
underlying inflationary pressures might worsen,
they preferred a symmetrical directive that gave
equal weight to possible intermeeting adjustments in either direction. A few members would
not rule out the possibility of some tightening,
which might foster some decline in long-term
interest rates by having quite beneficial effects on
inflation expectations and by reinforcing the public's perception of the Committee's commitment
to its price-stability objective.
At the conclusion of the Committee's discussion, all the members indicated that they favored
or could accept a directive that called for maintaining unchanged conditions of reserve availability, at least initially, in the intermeeting period ahead and that provided for giving emphasis
to potential developments that might require
some easing during the intermeeting period. Accordingly, slightly greater reserve restraint might
be acceptable during the intermeeting period,
while some easing 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 somewhat faster near-term
growth in money than the members had anticipated earlier, including growth in M2 and M3 at
annual rates of about 4 and 2VI percent respectively over the three-month period from June to
1043
September. The intermeeting range for the federal funds rate, which provides one mechanism
for initiating consultation of the Committee when
its boundaries are persistently exceeded, was left
unchanged at 6 to 10 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 is continuing to expand at a
relatively slow pace. After a sizable rise in May and
June, total nonfarm payroll employment registered a
large decline in July, much but not all of which
reflected layoffs of temporary census workers. The
civilian unemployment rate rose to 5.5 percent in July,
just above the narrow range that had prevailed for an
extended period. Industrial production was unchanged
in July after rising appreciably in the second quarter.
Retail sales rose considerably on balance over June
and July after declines in earlier months. Available
indicators point to a sluggish trend in business capital
spending. Residential construction weakened further
in July. The nominal U.S. merchandise trade deficit
narrowed sharply in June; for the second quarter, the
trade deficit was substantially reduced from its firstquarter rate. Consumer prices rose appreciably further
in June and July, while producer prices were about
unchanged over the two months. The latest data on
labor costs suggest no improvement in underlying
trends. Crude oil prices have risen sharply over the
last several weeks.
Short-term interest rates have fallen somewhat since
the Committee meeting on July 2-3, while rates in bond
markets have risen appreciably, as oil prices have
increased. The trade-weighted foreign exchange value
of the dollar in terms of the other G-10 currencies
declined considerably over the intermeeting period.
M2 grew slowly in June and July, while M3 was little
changed; available data for August suggest a partial
rebound in both aggregates. Growth of M2 and especially of M3 has been damped by the continuing contraction of deposits at thrift institutions resulting from
the restructuring of the thrift industry. Through July,
expansion of both M2 and M3 was estimated to be in
the lower portions of their respective ranges for 1990.
Expansion of total domestic nonfinancial debt appears
to have been near the midpoint of its monitoring 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 range it had established in February for M2 growth
of 3 to 7 percent, measured from the fourth quarter of
1989 to the fourth quarter of 1990. The Committee in
July also retained the monitoring range of 5 to 9
1044
Federal Reserve Bulletin • December 1990
percent for the year that it had set for growth of total
domestic nonfinancial debt. With regard to M3, the
Committee recognized that the ongoing restructuring
of thrift depository institutions had depressed its
growth relative to spending and total credit more
than anticipated. Taking account of the unexpectedly
strong M3 velocity, the Committee decided in July to
reduce the 1990 range to 1 to 5 percent. For 1991, the
Committee agreed on provisional ranges for monetary growth, measured from the fourth quarter of
1990 to the fourth quarter of 1991, of 2Vi to 6V2
percent for M2 and 1 to 5 percent for M3. The
Committee tentatively set the associated monitoring
range for growth of total domestic nonfinancial debt
at 4Vi to 8V2 percent for 1991. The behavior of the
monetary aggregates will continue to be evaluated in
the light of progress toward price level stability,
movements in their velocities, and developments in
the economy and financial markets.
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 somewhat 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 4 and 2Vz 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 6 to 10 percent.
Votes for this action: Messrs. Greenspan, Corrigan, Angell, Boehne, Boykin, Hoskins, Kelley,
LaWare, Mullins, Ms. Seger, and Mr. Stern. Votes
against this action: None.
1045
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 (OTC List) is comprised of
stocks traded over-the-counter (OTC) in the United
States 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 of Foreign Margin
Stocks (Foreign List) represents all foreign equity
securities that have met the Board's eligibility criteria
under Regulation T. The OTC List and the Foreign
List are published four times a year by the Board. This
document sets forth additions to or deletions from the
OTC List and additions to the Foreign List previously
published and effective on August 13, 1990.
Effective November 13, 1990, 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(u) and 220.17(e) (Regulation T), and 12 C.F.R.
§§ 221.20) and 221.7(c) (Regulation U), there is set forth
below a listing of deletions from and additions to the
OTC List; and the additions to the Foreign List.
Deletions From the List of Marginable OTC
Stocks
Stocks Removed for Failing Continued Listing
Requirements
Action Auto Stores, Inc.: N o par common
Airship Industries Limited: American Depositary Receipts representing 80 ordinary shares
A1 Copeland Enterprises, Inc.: Series 1, 17.5% exchangeable preferred
Altus Bank, A Federal Savings Bank (Alabama): $.01
par common
American Film Technologies, Inc.: Warrants (expire
06-30-93)
Anthony, Michael Jewelers, Inc.: $.001 par common
Astec Industries, Inc.: Warrants (expire 12-29-91)
Banc One Corporation: Series B, no par convertible
preferred
Beauty Labs, Inc.: $.01 par common
Brookfield Bancshares Corporation: $1.00 par common
Brooklyn Savings Bank, The: $1.00 par common
Capitol Bancorporation: $.55-5/9 par common
Care Plus, Inc.: Class A, warrants (expire 08-13-90)
CCAIR, Inc.: $.01 par common
Chemfix Technologies, Inc.: Warrants (expire
12-15-90)
Codenoll Technology Corporation: Warrants (expire
09-10-90)
Community Financial Corporation: $.01 par common
Coral Gold Corporation: N o par common
Cosmo Communications Corporation: $.01 par common
Country Wide Transport Services, Inc.: $.01 par common
CPT Corporation: $.05 par common, 10% convertible
subordinated debentures
DST Systems, Inc.: $.01 par common
Eliot Savings Bank (Massachusetts): $.10 par common
First Citizens Bancshares, Inc.: Class B, $1.00 par
common
First Executive Corporation: Warrants (expire
11-15-90)
First Savings Bank, F.S.B. (New Mexico): $1.00 par
common
Fleet Aerospace, Inc.: $.01 par common
Fulton Federal Savings Bank: $1.00 par common
General Building Products Corporation: $.05 par common
HEI Corporation: $.10 par common
Heritage Financial Corporation: $.90 par cumulative
convertible preferred
Independence Federal Savings Bank: $.01 par common
Institute of Clinical Pharmacology, PLC: American
1046 Federal Reserve Bulletin • December 1990
Depositary Receipts for non-restricted B shares
(nominal value FIN 20)
Bogert Oil Company: $.10 par common
Microwave Laboratories, Inc.: $.01 par common
Cadence Design Systems, Inc.: $.01 par common
Carolina Bancorp, Inc.: $1.00 par common
Church & Swight Co., Inc.: $1.00 par common
CII Financial, Inc.: N o par common
Novell, Inc.: 7-!/4% convertible subordinated debentures
Diagnostek, Inc.: $.01 par common
DYCOM Industries, Inc.: $.33-1/3 par common
OSICOM Technologies, Inc.: $.01 par common
Epsilon Data Management, Inc.: $.01 par common
Pacesetter Homes, Inc.: $.01 par common
Fidelity Federal Savings Bank (Indiana): $.01 par
common
Finnigan Corporation: $.01 par common
First Home Federal Savings and Loan Association
(Florida): $1.00 par common
Florida Public Utilities Company: $1.50 par common
Jesup Group Inc., The: $.01 par common
QUESTECH, Inc.: $.05 par common
Retailing Corporation of America: $1.00 par common
S.P.I.-Suspension and Parts Industries Limited: Ordinary Shares, IS 250 par value
SFE Technologies: $1.00 par common
Structofab, Inc.: $.02 par common
SUNF, Inc.: $.50 par common
Symbion, Inc.: $.01 par common
Syntech International, Inc.: $.10 par common
Tele-Optics, Inc.: $.01 par common
Greenery Rehabilitation Group, Inc.: $.01 par common
Henley International, Inc.: $.001 par common
Integon Corporation: $1.00 par common
Intellicall, Inc.: $.01 par common
International Lease Finance Corp.: $.10 par common,
Warrants (expire 1994)
United Savings Bank (Virginia): $5.00 par common
JMB Realty Trust: N o par shares of beneficial
Vikonics, Inc.: $.02 par common
Vinland Property Trust: N o par shares of beneficial
interest
Vista Organization Partnership, L.P., The: Depositary
units of limited partnership interest
Walker Telecommunications Corporation: $.01 par
common
Wall to Wall Sound and Video, Inc.: $.01 par common
Washington Bancorporation (Washington, D.C.):
$2.50 par common
Western Microwave, Inc.: $.10 par common
Williams, A.L., Corporation: 7.25% convertible subordinated debentures
World-Wide Technology, Inc.: $.01 par common
Mack Trucks, Inc.: $1.00 par common
Martin Lawrence Limited Editions: $.001 par common
Mid-America Bancorp: N o par common
Mountain West Savings Bank, F.S.B.: $1.00 par common
Mutual Federal Savings and Loan Association (North
Carolina): $1.00 par common
Mutual Federal Savings Bank, A Stock Corp. (Ohio):
$1.00 par common
National Media Corporation: $.10 par common
North-West Telecommunications, Inc.: $5.00 par
common
Old Republic International Corp.: $1.00 par common
Stocks Removed For Listing On A National
Securities Exchange Or Being Involved In An
Acquisition
Altos Computer Systems: N o par common
Bio-Medicus, Inc.: $.01 par common
Biotech Research Laboratories, Inc.: $.01 par common
Pennview Savings Association: $1.00 par common
Pharmacia AB: American Depositary Receipts for
non-restricted B shares (par value Skr 10)
Primebank, Federal Savings Bank (Michigan): $1.00
par common
Shelby Federal Savings Bank (Indiana): $1.00 par
common
Legal Developments
Stockholder Systems, Inc.: Class A, $.05 par common
Subaru of America, Inc.: $.01 par common
Summa Medical Corporation: $.01 par common
Tecogen, Inc.: $.10 par common
UTL Corporation: $.25 par common
1047
MARC AM Corporation: $.01 par common
Matrix Service Company: $.01 par common
MECA Software, Inc.: $.01 par common
Medical Management of America, Inc.: $.01 par common
Micrografx, Inc.: $.01 par common
Modtech, Inc.: $.01 par common
Molex Incorporated: Class A, $.05 par common
Webster Clothes, Inc., $.01 par common
Additions to the List of Marginable OTC
Stocks
Advanced Logic Research, Inc.: $.01 par common
Allied Clinical Laboratories, Inc.: $.01 par common
American Business Computers Corporation: $.01 par
common
Arcus, Inc.: $.01 par common
Astrocom Corporation: $.10 par common
Bird Medical Technologies, Inc.: $.01 par common
Canyon Resources Corporation: Warrants (expire
12-31-94)
Capitol Bancorp Ltd.: N o par common
Circuit Systems, Inc.: N o par common
CMS/Data Corporation: $.01 par common
COHO Resources, Inc.: $.01 par common
N D E Environmental Corporation: $.0001 par common
Nord Pacific Limited: $.01 par common
O'Charley's Inc.: N o par common
Orthopedic Services, Inc.: $.01 par common
Park National Corporation: $6.25 par common
Pinnacle Banc Group, Inc.: $6.25 par common
Radius Inc.: N o par common
Republic Health Corporation: $.01 par common
Republic Waste Industries, Inc.: $.01 par common
Rocky Mountain Helicopters, Inc.: $.02 par common
Security Savings Bank, FSB: $1.00 par common
Southmark Corporation: $.01 par common, Class A,
$.01 par convertible preferred
Suburbank Bankshares, Inc. (Florida): Class A,
$.10 par common
Sylvan Foods Holdings, Inc.: $.001 par common
Deprenyl Research Limited: N o par common
Dreco Energy Services Ltd.: Class A, no par common
DVI Financial Corporation: $.005 par common
Tinsley Laboratories, Inc.: N o par common
Trimble Navigation Limited: N o par common
Easel Corporation: $.01 par common
ESB Bancorp, Inc.: $1.00 par common
Uranium Resources, Inc.: $.001
Warrants (expire 02-26-94)
Failure Group, Inc., The: $.001 par common
Gerrity Oil & Gas Corporation: $.01 par common
Grant-Norpac, Inc.: $.002 par common
Vanguard Real Estate Fund II: N o par shares of
beneficial interest
VISX, Incorporated: N o par common
Vital Signs, Inc.: N o par common
Helix Biocore, Inc.: $.01 par common
High Plains Corporation: $.10 par common
Warrantech Corporation: $.0007 par common
Westwood One, Inc.: Warrants (expire 09-04-97)
IKOS Systems, Inc.: $.01 par common
Illinois Central Corporation: $.001 par common
In-Store Advertising, Inc.: $.01 par common
Additions to the List of Foreign Margin Stocks
Keene Corporation: $.0001 par common
London International Group PLC: American Depositary Receipts
Lunar Corporation: $.01 par common
par
common,
Abbey National PLC: Ordinary shares, par value 10 p
All Nippon Airways Co., LTD.: ¥ 5 0 par common
Allied Lyons PLC: Common, par value 25 p
ARGYL Group PLC: Ordinary shares, par value 25 p
Asahi Breweries: ¥ 5 0 par common
Asahi Chemical Industry: ¥ 5 0 par common
Asahi Glass Co., LTD.: ¥ 5 0 par common
1048 Federal Reserve Bulletin • December 1990
ASDA Group PLC: Ordinary shares, par value 25 p
Associated British Foods PLC: Ordinary shares, par
value 5 p
B A . T . Industries LTD. PLC: Ordinary shares 25 p
Barclays Bank PLC: Common, par value 100 p
Bass PLC: Ordinary shares, par value 25 p
BET PLC: Common, par value 25 p
BICC PLC: Ordinary shares, par value 50 p
Blue Circle Industries PLC: Common, par value 50 p
BOC Group PLC: Common, par value 25 p
Boots Company PLC, The: Common, par value 25 p
BPB Industries PLC: Ordinary shares, par value 50 p
Bridgestone Corporation: ¥ 5 0 par common
British Airways PLC: Ordinary shares, par value 25 p
British Petroleum Company PLC: Ordinary shares,
par value 25 p
British Steel PLC: Common, par value 50 p
British Telecommunications PLC: Common, par value
25 p
BTR PLC: Common, par value 25 p
Burmah Oil PLC, The: Common, par value 100 p
C. Itoh Fuel Company LTD.: ¥ 5 0 par common
Cable & Wireless PLC: Ordinary shares, par
50 p
Cadbury Schweppes PLC: Ordinary shares, par
25 p
Carlton Communications PLC: Common, par
5P
Commercial Union Assurance Company PLC:
nary shares, par value 25 p
Courtaulds PLC: Common, par value 25 p
value
value
value
Ordi-
DAI Nippon Printing: ¥ 5 0 par common
DAI-Ichi Kangyo Bank LTD.: ¥ 5 0 par common
Denki Kagaku Kogyo: ¥ 5 0 par common
Dowa Mining: ¥ 5 0 par common
Ebara Corporation: ¥ 5 0 par common
Enterprise Oil PLC: Ordinary shares, par value 25 p
Fiaona PLC: Common, par value 25 p
Fuji Bank LTD.: ¥ 5 0 par common
Fuji Electric Company LTD.: ¥ 5 0 par common
Fujita Corporation: ¥ 5 0 par common
Fujitsu LTD.: ¥ 5 0 par common
Furukawa: ¥ 5 0 par common
Furukawa Electric Company LTD.: ¥ 5 0 par common
General Accident Fire & Life Assurance Corp. PLC:
Common, par value 25 p
GKN PLC: Common, par value 100 p
Glaxo Holdings PLC: Common, par value 50 p
Great Universal Stores PLC: " A " Ordinary shares
(non-voting), par value 25 p
Guardian Royal Exchange PLC: Ordinary shares, par
value 5 p
Hammerson Property Investment A N D Development
Corp. PLC: Common, par value 25 p
Hanson PLC: Ordinary shares, par value 25 p
Harrisons And Crosfield PLC: Common, par value
25 p
Hawker Sisseley Group PLC: Common, par value 25 p
Hillsdown Holdings PLC: Ordinary shares, par value
10 p
Hino Motors LTD.: ¥ 5 0 par common
Honda Motor Company LTD.: ¥ 5 0 par common
Imperial Chemical Industries PLC: Common, par
value 100 p
Ishikawajima-Harima Heavy Industries Company
LTD.: ¥ 5 0 par common
Isuzu Motors LTD.: ¥ 5 0 par common
Japan Steel Works: ¥ 5 0 par common
Jujo Paper Company LTD.: ¥ 5 0 par common
Kajima Corporation: ¥ 5 0 par common
Kanebo LTD.: ¥ 5 0 par common
Kansai Electric Power Company Inc.: ¥500 par common
Kawasaki Heavy Industries LTD.: ¥ 5 0 par common
Kawasaki Kisen: ¥ 5 0 par common
Kawasaki Steel Corporation: ¥ 5 0 par common
Keihin Electric Express Railway: ¥ 5 0 par common
Keio Teito Electric Railway: ¥ 5 0 par common
Keisei Electric Railway: ¥ 5 0 par common
Kikkoman: ¥ 5 0 par common
Kingfisher PLC: Ordinary shares, par value 25 p
Kirin Brewery Company LTD.: ¥ 5 0 par common
Kobe Steel: ¥ 5 0 par common
Konica Corporation: ¥ 5 0 par common
Koyo Seiko: ¥ 5 0 par common
Kubota Corporation LTD.: ¥ 5 0 par common
Kuraray Company LTD.: ¥ 5 0 par common
Kyowa Hakko Kogyo Company LTD.: ¥ 5 0 par common
Ladbroke Group PLC: Ordinary shares, par value 10 p
Land Securities PLC: Common, par value 100 p
Lamo PLC: Common, par value 25 p
Legal and General Group PLC: Common, par value
25 p
Lloyds Bank PLC: Common, par value 100 p
Lonrho LTD. PLC: Ordinary shares, par value 25 p
Legal Developments
Lucas Industries PLC: Ordinary shares, par value
100 p
Marks & Spencer PLC: Ordinary shares, par value
25 p
Marubeni Corporation: ¥ 5 0 par common
Matsuzakaya: ¥ 5 0 par common
Maxwell Communication Corporation PLC: Ordinary
shares, par value 25 p
Mazda Motor Corporation: ¥ 5 0 par common
Meidensha Electric: ¥ 5 0 par common
Meiji Milk Products: ¥ 5 0 par common
Meiji Seika Kaisha LTD: ¥ 5 0 par common
MEPC PLC: Common, par value 25 p
Midland Bank PLC: Ordinary shares, par value 100 p
Mitsubishi Corporation: ¥ 5 0 par common
Mitsubishi Electric Corporation: ¥ 5 0 par common
Mitsubishi Estate Company LTD.: ¥ 5 0 par common
Mitsubishi Heavy Industry LTD.: ¥ 5 0 par common
Mitsubishi Kaisei Corporation: ¥50 par common
Mitsubishi Metal Corporation: ¥ 5 0 par common
Mitsubishi Oil Company LTD.: ¥ 5 0 par common
Mitsubishi Paper Mills: ¥ 5 0 par common
Mitsubishi Rayon Company LTD.: ¥ 5 0 par common
Mitsubishi Steel Manufacturing: ¥ 5 0 par common
Mitsubishi Trust & Banking Corporation: ¥ 5 0 par
common
Mitsubishi Warehouse & Transportation: ¥ 5 0 par
common
Mitsui & Co. LTD.: ¥ 5 0 par common
Mitsui Mining & Smelting Company LTD.: ¥ 5 0 par
common
Mitsui Osk Lines LTD.: ¥ 5 0 par common
Mitsui Real Estate Development Company LTD.: ¥ 5 0
par common
Mitsui Taiyo Kobe Bank: ¥ 5 0 par common
Mitsui Toatsu Chemicals: ¥ 5 0 par common
Mitsui Trust And Banking Company LTD.: ¥ 5 0 par
common
Moromaga and Company: ¥ 5 0 par common
Nachi-Fujikoshi: ¥ 5 0 par common
National Westminister Bank PLC: Common, par value
100 p
Navix Line: ¥ 5 0 par common
NGK Insulators: ¥ 5 0 par common
Nichirei Corporation: ¥ 5 0 par common
Nihon Cement: ¥ 5 0 par common
Niigata Engineering: ¥ 5 0 par common
Nikko Securities Company LTD.: ¥ 5 0 par common
Nikon Corporation: ¥ 5 0 par common
Nippon Beet Sugar Manufacturing: ¥ 5 0 par common
Nippon Denso: ¥ 5 0 par common
Nippon Kayaku Company LTD.: ¥ 5 0 par common
Nippon Light Metal Company LTD.: ¥ 5 0 par common
1049
Nippon Mining Company LTD.: ¥ 5 0 par common
Nippon Oil & Fats: ¥ 5 0 par common
Nippon Oil Company LTD.: ¥ 5 0 par common
Nippon Seiko: ¥ 5 0 par common
Nippon Sharyo Seizo: ¥ 5 0 par common
Nippon Sheet Glass Company LTD.: ¥ 5 0 par common
Nippon Shinpan Company LTD.: ¥ 5 0 par common
Nippon Steel Corporation: ¥ 5 0 par common
Nippon Suisan: ¥ 5 0 par common
Nippon Yusen: ¥ 5 0 par common
Nissan Motors: ¥ 5 0 par common
Nisshin Flour Milling Company LTD.: ¥ 5 0 par common
Nisshin Oil Mills: ¥ 5 0 par common
NKK Corporation: ¥ 5 0 par common
Noritake: ¥ 5 0 par common
NTN Toyo Bearing Company LTD.: ¥ 5 0 par common
Obayashi: ¥ 5 0 par common
Odakyu Electric Railway: ¥ 5 0 par common
Oji Paper Company LTD.: ¥ 5 0 par common
Oki Electric Industry Company Inc.: ¥ 5 0 par common
Okuma Machinery Works LTD.: ¥ 5 0 par common
Onoda Cement Company LTD.: ¥ 5 0 par common
Osaka Gas Company LTD.: ¥ 5 0 par common
Pearson PLC: Ordinary shares, par value 25 p
Peninsular and Oriental Steam Navigation Company:
(Deferred Stock) Ordinary shares, par value 100 p
Pilkington PLC: Common, par value 50 p
Prudential Corporation PLC: Common, par value 5 p
Rank Organization PLC: Ordinary shares, par value
25 p
Ranks Hovis McDougall PLC: Common, par value
25 p
Reckitt and Colman PLC: Ordinary shares, par value
25 p
Redland PLC: Common, par value 25 p
Reed International PLC: Common, par value 25 p
Reuters Holdings PLC: Common, par value 10 p
RMC Group PLC: Common, par value 25 p
Rolls Royce PLC: Ordinary shares, par value 20 p
Rothmans International PLC: Common, par value
12-!/2 p
Royal Bank of Scotland Group PLC: Ordinary shares,
par value 25 p
Royal Insurance PLC: Common, par value 25 p
RTZ Corporation, The: Common, par value 10 p
Sainsbury, J. PLC: Ordinary shares, par value 25 p
Sankyo Company LTD.: ¥ 5 0 par common
Sanyo Electric Company: ¥ 5 0 par common
Sanyo-Kokusaku Pulp: ¥ 5 0 par common
1050 Federal Reserve Bulletin • December 1990
Sapporo Breweries: ¥ 5 0 par common
Sato Kogy Company LTD.: ¥ 5 0 par common
Scottish Newcastle Breweries PLC: Ordinary shares,
par value 20 p
Sears Holdings PLC: Ordinary shares, par value 25 p
Sharp Corporation: ¥ 5 0 par common
Shell Transport & Trading Company PLC: Ordinary
shares, par value 25 p
Shimizu Corporation: ¥ 5 0 par common
Shinetsu Chemical Company, LTD.: ¥ 5 0 par common
Shochiku: ¥ 5 0 par common
Showa Denko K.K.: ¥ 5 0 par common
Showa Electric Wire: ¥ 5 0 par common
Showa Line LTD.: ¥ 5 0 par common
Showa Shell Oil: ¥ 5 0 par common
Smith & Nephew Associated Company PLC: Ordinary shares, par value 10 p
Smithkline Beecham PLC: "A" Ordinary shares, par
value 25 p
Standard Chartered Group PLC: Ordinary shares, par
value 100 p
STC PLC: Common, par value 25 p
Sumitomo Bank LTD.: ¥ 5 0 par common
Sumitomo Cement Company Ltd.: ¥ 5 0 par common
Sumitomo Chemical Company LTD.: ¥ 5 0 par common
Sumitomo Corporation: ¥ 5 0 par common
Sumitomo Electric Industries LTD.: ¥ 5 0 par common
Sumitomo Metal Industries: ¥ 5 0 par common
Sumitomo Metal Mining Company LTD.: ¥ 5 0 par
common
Sun Alliance Group PLC: Ordinary shares, par value
25 p
Suzuki Motor Company LTD.: ¥ 5 0 par common
Taisho Marine & Fire Insurance Company LTD.: ¥ 5 0
par common
Takara Shuzo: ¥50 par common
Takashimaya Company LTD.: ¥ 5 0 par common
Takeda Chemical Industries LTD.: ¥ 5 0 par common
Tarmac PLC: Common, par value 50 p
Taylor Woodrow PLC: Common, par value 25 p
Teijin LTD.: ¥ 5 0 par common
Teikoku Oil: ¥ 5 0 par common
Tekken Construction: ¥ 5 0 par common
Tesco PLC: Ordinary shares, par value 5 p
Thames Water PLC: Ordinary shares, par value 100 p
Thorn Emi PLC: Common, par value 25 p
Tobu Railway Company LTD.: ¥ 5 0 par common
Tokio Marine & Fire Insurance Company LTD.: ¥ 5 0
par common
Tokyo Department Store: ¥ 5 0 par common
Tokyo Electric Power Company Incorporated: ¥500
par common
Tokyo Gas Company LTD.: ¥ 5 0 par common
Tonen Corporation: ¥ 5 0 par common
Toray Industries, Inc.: ¥ 5 0 par common
Toshiba Corporation: ¥ 5 0 par common
Tosoh Corporation: ¥ 5 0 par common
Toto LTD.: ¥ 5 0 par common
Toyo Seikan: ¥ 5 0 par common
Totobo Company LTD.: ¥ 5 0 par common
Trafalgar House PLC: Common, par value 20 p
Trusthouse Forte PLC: Common, par value 25 p
TSB Group PLC: Common, par value 25 p
UBE Industries: ¥ 5 0 par common
Ultramar PLC: Ordinary shares, par value 25 p
Unilever PLC: Ordinary shares, par value 5 p
United Biscuits Holdings PLC: Ordinary shares, par
value 25 p
Unitika: ¥ 5 0 par common
Whitbread & COMPANY PLC: Common, par value
25 p
Yasuda Fire & Marine Insurance Company LTD.: ¥ 5 0
par common
Yokogawa Electric Corporation: ¥ 5 0 par common
Yokohama Rubber Company LTD.: ¥ 5 0 par common
Yuasa Battery: ¥ 5 0 par common
FINAL RULE—AMENDMENT
TO RULES
REGARDING DELEGATION OF AUTHORITY
The Secretary of the Board, in accordance with
12 C.F.R. Part 265, has approved a technical amendment to the Board's Rules Regarding Delegation of
Authority to conform a reference to the Board's Rules
Regarding Availability of Information (12 C.F.R. Part
261) to the revised version of that part that became
effective in 1988.
Effective October 3, 1990, 12 C.F.R. Part 265 is
amended as follows:
Part 265—Rules Regarding Delegation of
Authority
1. The authority citation for Part 265 continues to read
as follows:
Authority: Section ll(k), 38 Stat. 261 and 80 Stat.
1314; 12 U.S.C. § 248(k).
2. In section 265.2(c)(20), the reference "§ 261.6(a)(2)
and (3)" is revised to read "§ 261.8(a)(2) and (3)."
Legal Developments
ORDERS ISSUED UNDER BANK
COMPANY ACT
HOLDING
Orders Issued Under Section 3 of the Bank
Holding Company Act
First Bank System, Inc.
Minneapolis, Minnesota
Order Approving Merger of Bank Holding
Companies
First Bank System, Inc., Minneapolis, Minnesota
("FBS"), 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 of the
BHC Act (12 U.S.C. § 1842) to merge with Northern
Cities Bancorporation, Inc., Anoka, Minnesota
("Northern Cities"), and thereby acquire Northern
Bank, Anoka, Minnesota, and Northern National
Bank, Forest Lake, Minnesota.
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (55 Federal Register 31,232 (1990)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the BHC Act.
FBS, with total deposits of approximately $15.0
billion, is the largest commercial banking organization
in the state of Minnesota, controlling 26 subsidiary
banks, representing approximately 26.2 percent of
total deposits in commercial banking organizations in
the state. 1 Northern Cities controls two subsidiary
banks with deposits of $91.9 million and is the 46th
largest commercial banking organization in the state,
controlling 0.2 percent of total deposits in commercial
banking organizations in the state. Upon consummation of this proposal, FBS would remain the largest
commercial banking organization in the state, controlling 26.4 percent of total deposits in commercial banking organizations in the state. Consummation of the
proposal would not result in significantly adverse
effects on the concentration of banking resources in
Minnesota.
Both FBS and Northern Cities compete in the
Minneapolis-St. Paul banking market.2 FBS is the
1. Market data are as of June 30, 1989. State banking data are as of
December 31, 1989.
2. The Minneapolis-St. Paul banking market is approximated by the
Anoka, Hennepin, Ramsey, Washington, Carver, Scott and Dakota
Counties; Lent, Chisago Lake, Shafer, Wyoming and Franconia
Townships in Chisago County; Blue Hill, Baldwin, Orrock, Livonia
and Big Lake Townships and the City of Elk River in Sherburne
County; Monticello, Otsego, Buffalo, Frankfort, Rockford and Fran-
1051
largest commercial banking organization in the market
with $9.6 billion in deposits, representing approximately 37 percent of total deposits in commercial
banking organizations in the market. Northern Cities
is the 23rd largest commercial banking organization in
the market, controlling deposits of $89.8 million, representing 0.4 percent of total deposits in commercial
banking organizations in the market. The MinneapolisSt. Paul banking market is highly concentrated. 3 Upon
consummation of this proposal, FBS's share of commercial banking deposits would increase to 37.4 percent. The Herfindahl-Hirschman Index ("HHI")
would increase by 26 points to 2377. If 50 percent of
the deposits controlled by thrift institutions were included in the calculation of market concentration, FBS
and Northern Cities would control 34.1 percent and
0.3 percent of total thrift-adjusted market deposits,
respectively. The HHI would increase by 22 points to
2034 upon consummation of this proposal. 4
The two largest banking organizations in the Minneapolis-St. Paul banking market together control approximately 61.7 percent of total thrift-adjusted market deposits. The third largest depository institution in
the market controls approximately 6 percent of market
deposits. During the past two years, the number of
commercial banks in the market has declined, although there are still numerous competitors in the
market.
The Board has previously indicated that, in the
context of the structure of the Minneapolis-St. Paul
banking market, the acquisition of any depository
institution in the market by either of the two largest
firms in the market requires close scrutiny. 5 The Board
has indicated that, under the conditions in the Minneapolis-St. Paul banking market, the acquisition by
klin Townships in Wright County; Lanesburgh Township in Le Sueur
County, Minnesota; and the Town of Hudson in St. Croix County,
Wisconsin.
3. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 2, 1984), any market in which the
post-merger HHI is over 1800 is considered highly concentrated, and
the Justice Department is likely to challenge a merger that increases
the HHI by more than 50 points unless other factors indicated that the
merger will not substantially lessen competition. The Justice Department has informed the Board that a bank merger or acquisition
generally will not be challenged (in the absence of other factors
indicating anticompetitive effects) unless the post-merger HHI is at
least 1800 and the merger increases the HHI by at least 200 points. The
Justice Department has stated that the higher than normal HHI
thresholds for screening bank mergers for anticompetitive effects
implicitly recognizes the competitive effects of limited-purpose lenders and other non-depository financial entities.
4. The Board previously has indicated that thrift institutions have
become, or have the potential to become, major competitors of
commercial banks. National City Corporation, 70 Federal Reserve
Bulletin 743 (1984); NCNB Bancorporation,
70 Federal Reserve
Bulletin 225 (1984); General Bancshares Corporation, 69 Federal
Reserve Bulletin 802 (1983); and First Tennessee National Corporation, 69 Federal Reserve Bulletin 298 (1983).
5. Norwest Corporation, 76 Federal Reserve Bulletin 873 (1990).
1052
Federal Reserve Bulletin • December 1990
these two banking organizations of a series of depository organizations with relatively small market shares
could, on a cumulative basis, lead to significant anticompetitive effects.
The Board recognizes in this case that Northern
Cities is ranked 23rd in the Minneapolis-St. Paul
banking market in market share and controls less than
one-half of one percent of the market deposits. As
noted above, consummation of this proposal would
cause the thrift-adjusted HHI for this market to increase by approximately 22 points. If viewed in the
context of other acquisitions recently made by FBS in
the Minneapolis-St. Paul banking market, the effect of
Applicant's acquisitions, including this proposal,
would be to increase the thrift-adjusted HHI by an
amount less than the level that would likely give rise to
a challenge of a bank acquisition on competitive
grounds under the Department of Justice Merger
Guidelines.
In light of all the facts in this case, including the
number of competitors remaining in the market, the
size and location of Northern Cities and other facts of
record, the Board does not believe that the effect of
the proposed acquisition on competition in the Minneapolis-St. Paul banking market, viewed either as an
individual acquisition or in the context of other recent
acquisitions by Applicant, would be so significantly
adverse as to warrant denial of this proposal.
Section 3(c) of the BHC Act requires in every case
that the Board consider the financial resources of the
applicant and the banking organization to be acquired.
In evaluating this application, the Board has carefully
considered the financial resources of FBS 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. 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
The Board notes that F B S has recently raised approximately $172 million in additional equity capital,
and that its primary capital ratio is in conformance
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).
with the capital guidelines established by the Board for
bank holding companies. F B S has proposed to acquire
Northern Cities through an exchange of stock and will
not incur additional debt. In addition, Northern Cities
represents a relatively small acquisition that had been
arranged by prior management of FBS before recent
improvements initiated by FBS. Consummation of this
proposal would not have a material effect on the
tangible capital ratios of FBS.
In view of these and other facts of record, the Board
has determined that financial factors of this proposal
are consistent with approval of the application. The
Board expects F B S to make further progress in improving its financial position before seeking to make
any future expansion proposals.
The managerial resources and future prospects of
FBS and Northern Cities are consistent with approval.
The Board has also determined that considerations
relating to the convenience and needs of the communities to be served are consistent with approval of this
application.
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. The 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 Minneapolis, acting
pursuant to delegated authority.
By order of the Board of Governors, effective
October 10, 1990.
Voting for this action: Chairman Greenspan, and Governors Kelley and Mullins. Voting against this action: Governors Angell and LaWare. Absent and not voting: Governor
Seger.
JENNIFER J. JOHNSON
Associate
Concurring
Statement
Secretary
of Governor
of the Board
Kelley
While voting in favor of this application, I do so by the
narrowest of margins.
On the competitive issue, I believe this proposal
merits approval because it does not create significant
additional concentration in the relevant banking market. The increase in market concentration resulting
from this proposal, viewed in context with other
recent acquisitions by Applicant in this market, would
be well below the level specified in the Department of
Justice Merger Guidelines. However, the proposal
does marginally add to already existing concentration
in this market, and, as a consequence, I will view with
Legal Developments
ever greater scrutiny any further combinations that
will exacerbate this condition.
On the financial issue, I concur with Governors
Angell and LaWare that Applicant must continue to
address its announced problems. However, Applicant
has taken aggressive steps to strengthen itself and, in
my view, this relatively small stock-for-stock merger
does not warrant rejection on financial grounds.
October 10, 1990
Dissenting
LaWare
Statement
of Governors Angell and
We disagree with the Board's action in this case. The
Board requires bank holding companies seeking to
expand through acquisition to be in overall strong
financial condition. FBS has recently taken a number
of important steps towards addressing publicly known
financial problems at the organization. However, we
believe that FBS must continue to address its announced problems and make additional progress
towards improving its financial condition prior to
seeking to expand by acquisition. Accordingly, we do
not believe that financial factors favor approval of this
proposal at this time. While we have also expressed
concerns about the competitive effects of acquisitions
in the St. Paul-Minneapolis banking market by the two
largest banking organizations, we need not reach a
decision on that aspect of this case.
October 10, 1990
U . S . Bancorp
Portland, Oregon
Order Approving
Acquisition
of a Bank
U.S. Bancorp, Portland, Oregon ("Bancorp"), 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 100 percent of
the voting shares of U.S. Bank, National Association,
Beaverton, Oregon ("U.S. Bank"), a de novo bank. In
connection with this application, Bancorp has applied
to acquire U.S. Bancorp Financial Services, Inc.,
Portland, Oregon ("Bancorp Financial"), which has
applied for the Board's approval under section 3(a)(1)
of the BHC Act (12 U.S.C. § 1842(a)(1)) to become a
bank holding company by acquiring 100 percent of the
voting shares of U.S. Bank.
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (55 Federal Register 31,232 (1990)). The
1053
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 BHC Act.
Bancorp is the largest commercial banking organization in Oregon, controlling two banks in Oregon
with total deposits of $7.6 billion, representing 42.7
percent of the total deposits in commercial banking
organizations in the state. 1 Bancorp also operates
subsidiary banks in Washington, Utah and California.
U.S. Bank, a de novo institution, is being organized
as a national bank. The bank will be an FDIC-insured
commercial bank and will place primary emphasis on
providing credit cards and other consumer financial
services and products to members of various affinity
groups and customers in the Portland RMS A. In view
of the de novo status of U.S. Bank and based upon the
facts of record, the Board concludes that the proposed
transaction would have no significantly adverse effects
on existing or probable future competition, and would
not significantly increase the concentration of resources in any relevant market. Thus, competitive
considerations are consistent with approval of the
application. In addition, the financial and managerial
resources of U.S. Bank, Bancorp, and Bancorp Financial are consistent with approval of these applications.
In considering the convenience and needs of the
community to be served, the Board has taken into
account the record of Bancorp's subsidiary banks
under the Community Reinvestment Act ("CRA")
(12 U.S.C. § 2901 et seq ). The CRA requires the
federal financial supervisory agencies to encourage
financial institutions to help meet the credit needs of
the local communities in which they operate, consistent with the safe and sound operation of such institutions. To accomplish this end, the CRA requires the
appropriate federal supervisory authority to assess the
institution's record of meeting the credit needs of its
entire community, including low- and moderateincome neighborhoods, consistent with the safe and
sound operation of the institution, and to take this
record into account in its evaluation of bank holding
company applications. 2
In this regard, the Board has received a comment
filed by the Portland Organizing Project 3 ("Protestant") critical of the CRA performance of the U.S.
National Bank of Oregon ("USBO"), Bancorp's largest subsidiary in Oregon, in the Portland, Oregon
1. State banking data are as of June 30, 1990.
2. 12 U.S.C. § 2903.
3. The Portland Organizing Project is a coalition of churches
representing 5,000 families in working class, low- and moderateincome neighborhoods.
1054
Federal Reserve Bulletin • December 1990
area. 4 Protestant states that it has been meeting with
USBO since January 1990, to put together a national
demonstration project to target mortgage loans in
lower-income neighborhoods in Portland, Oregon.
Protestant alleges that it has urged USBO to reduce
closing costs and interest rates on loans targeted to
inner-city neighborhoods and market such loans, but
Protestant's efforts have been unproductive. In addition, Protestant states that in general USBO's marketing strategy to low- and moderate-income neighborhoods is insufficient. Protestant alleges that USBO
made very few loans to minority areas of Portland
during the period 1987 through 1989 compared to the
higher-income suburbs. 5 Protestant also alleges that
USBO charges higher loan fees for loans under
$50,000 than for loans over that amount. Bancorp has
submitted a detailed response to the comments made
by Protestant. 6
The Board has carefully reviewed the CRA performance record of USBO, as well as Protestant's comments and Bancorp's response to those comments, in
light of the CRA, the Board's regulations and the
Statement of the Federal Financial Supervisory Agencies Regarding the Community Reinvestment Act
("Agency CRA Statement"). 7 The Agency CRA
Statement provides guidance regarding the types of
policies and procedures that the supervisory agencies
believe financial institutions should have in place in
order to fulfill their responsibilities under the CRA on
an ongoing basis and the procedures that the supervisory agencies will use during the application process to
review an institution's CRA compliance and perfor-
4. Protestant contends that the application is deficient because it
does not include a complete record of USBO's CRA activities. While
the application did not contain a complete record of USBO's CRA
activities the record has been developed over the course of the
application process, and the Board has thoroughly reviewed USBO's
CRA activities in conjunction with this application.
5. As evidence to support this allegation, Protestant has submitted
a study that appeared in The Oregotiian in September 1990, suggesting
that, in recent years, there has been a significant disparity in the home
mortgage loans made by Portland lenders to high-income and white
residents as opposed to low- and moderate-income and minority
residents in Portland. In the "Report on Loan Discrimination"
submitted to Congress by the Board on October 13, 1989, pursuant to
section 1220 of the Financial Institutions Reform, Recovery and
Enforcement Act of 1989 (the "Report"), the Board generally reviewed various public studies of mortgage lending in Atlanta, Cleveland, Detroit and Boston. The Report noted that, while these studies
appeared to indicate that disparities existed in home mortgage lending
between minority and non-minority areas, they did not provide a basis
for definitive conclusions about the existence or extent of racial
discrimination in mortgage lending and did not account for certain
factors other than discrimination in lending that might account for
these disparities—including differences in demand for mortgage loans,
differences in the types of mortgage products offered by depository
and nondepository institutions, and the tendency of nondepository
lenders to dominate the minority mortgage loan market.
6. USBO has met with Protestant in an effort to clarify the issues
presented under the CRA.
7. 54 Federal Register 13,742 (1989).
mance. The Agency CRA Statement also indicates
that decisions by agencies to allow financial institutions to expand will be made pursuant to an analysis of
the institution's overall CRA performance, and will be
based on the actual record of performance of the
institution. 8
Initially, the Board notes in this case that Bancorp's
subsidiary banks—including USBO—have each received a satisfactory rating from their primary regulators in the most recent examinations of their CRA
performance. The Agency CRA Statement provides
that, although CRA examination reports do not provide conclusive evidence of an institution's CRA
record, these reports will be given great weight in the
applications process. 9
In addition, Bancorp and USBO have put in place
various elements outlined in the Agency CRA Statement that contribute to an effective CRA program.
Specifically, Bancorp has established a program for
reviewing and supervising the CRA programs of its
subsidiary banks that is led by an executive director.
In 1990, Bancorp established a CRA/Social Responsibility Task Force, a committee that includes five
executive vice presidents of the bank subsidiaries of
Bancorp. The committee is an overview committee
whose purpose is to provide high-level support for the
company's CRA effort. Each committee member has
corporate-wide responsibility for a single aspect of
CRA, including: training, product development, government programs, documentation, mortgage programs, investment programs, regulatory compliance
and marketing. Each committee member reports his or
her activities to the committee, which meets at least
bimonthly. Through the committee members, Bancorp
provides information to subsidiary banks regarding
evolving areas of emphasis under the CRA, and suggests guidelines to assure that subsidiary banks are
meeting their responsibilities to the community under
the CRA.
The Chair of the CRA/Social Responsibility Committee reports not only to the Corporate Policy Committee of Bancorp, but to the Corporate Policy Committee of USBO and to the board of directors of USBO
through the USBO Social Responsibility Committee.
This committee reviews and evaluates the CRA program of USBO. The USBO Social Responsibility
Committee reviews the bank's CRA performance and
CRA statement at least two times per year. USBO's
board of directors reviews the CRA statement annually. USBO's CRA effort is also led by a CRA director
8. Id.
9. 54 Federal Register at 13,745.
Legal Developments
who reports both to the Bancorp CRA director and to
the president of USBO.
USBO and USBMC use a variety of means to
market their products and services to low- and moderate-income individuals. USBO and USBMC employ
a wide variety of media, including advertisements in
print media, radio, television, billboards, fliers and
placards in branches, and fliers distributed by neighborhood coalition groups. The print media advertising
includes not only the traditional city newspapers, but
also minority-related media, free newspapers, and
neighborhood newspapers. USBO and USBMC conducts many seminars in low- and moderate-income
areas to acquaint the public with the loan products,
programs and services that are of special interest to
low- and moderate-income individuals. In response to
its market research study, USBO and USBMC have
been marketing their products through sales calls to
realtors. For example, the East Portland office of
USBMC, located in a low- and moderate-income census tract, has regular contact with 40 realty companies. Moreover, with respect to Protestant's specific
complaint about the marketing of the Portland Organizing Project/Home Afifordability Program loans,
USBO has agreed in principle to market these loans by
working with realtors, conducting first-time home
buyer seminars, educating its employees about the
program, and publicly announcing program changes.
Since early 1990, USBO has conducted formal research studies to identify additional community credit
needs. USBO prepared a comparison of its loan penetration statistics to the state average loan penetration
statistics, for all loans in general and for specific
product types. Using these results and other information, USBO rated its performance throughout the state
and identified ten geographic areas in need of special
attention. USBO then conducted field research in
these areas, arranging meetings between bank managers and officers and local community leaders to discuss
community needs and the best ways to meet the needs.
The product and service managers use the information
collected in this way to develop new products, programs and services, as well as enhancements to existing products, programs and services. As the result of
this study, USBO created a community liaison position for one area and test-markets products by obtaining input from community leaders.
USBO offers other products and services to benefit
low- and moderate-income customers. Thirty-five percent of USBO's checking accounts are low fee or no
fee checking accounts, including special accounts for
students, senior citizens, and community organizations. USBO participates in a program providing lowrate weatherization loans to homeowners whose
homes are heated with fuel oil. USBO has developed a
1055
creditline product making revolving credit readily
available to small businesses and farms to fund operating costs and capital improvements, as well as participating in the FmHA and SB A loan programs.
USBO also has been active in lending to farmers,
public finance, and nonprofit organizations. In 1970,
USBO implemented the Opportunity Loan Program
for both consumer and commercial loans to benefit
low-income, minority or elderly individuals, people
with physical, educational or economic disadvantages,
minority businesses and non-profit groups. The program provides flexibility in collateral requirements,
the term of a loan and the risk-rating of the borrower,
so that those not eligible for conventional financing
may be eligible for an opportunity loan. Under this
program, USBO currently has 194 borrowers with $6.1
million in original loan commitments outstanding. In
addition, USBO is one of five Oregon banks who have
committed to lend $3 million to minority-owned businesses for start-up and short-term capital.
Bancorp and USBO also actively participate in
community development activities. USBO conducts
educational seminars for those interested in purchasing homes, for small businesses, and for nonprofit
organizations seeking assistance in obtaining funding
from grant-makers or foundations. Bancorp's Public
Finance Department assists cities, counties, the state,
school districts and other nonprofit entities in Oregon
to finance capital improvement. In 1988, USBO provided construction financing, permanent financing and
short-term loans to REACH Community Development, Inc. to acquire and renovate 253 units of inner
city, low-income housing in Portland. USBO will be
participating in several other community development
programs, including one to build or rehabilitate 250
homes in Portland.
The Board notes that there have been some disparities in the HMDA data for USBO's and USBMC's
home mortgage lending to borrowers in low- and
moderate-income versus high-income census tracts
and minority versus non-minority census tracts. 10 As
noted above, USBO does little home mortgage lending
generally. However, a significant number of USBO's
home improvement loans are in low- and moderateincome neighborhoods. In 1988, USBO made 26 percent of its home improvement loans in low- and
moderate-income census tracts. More recently, as
discussed above, USBO has implemented many additional programs and agreed to changes in the Portland
Organizing Project/Home Afifordability Program to
10. Although some disparities appear in the HMDA data of USBO,
its affiliate, USBMC, is the second largest FHA and VA lender in
minority and low- and moderate-income census tracts.
1056 Federal Reserve Bulletin • December 1990
make its loans more attractive to low- and moderateincome individuals.
Because U S B O is not active in home mortgage
lending generally, U S B O refers virtually all of its
home mortgage lending to U . S . Bancorp Mortgage
Company ( " U S B M C " ) , a subsidiary of Bancorp,
that participates in V A , F H A and other governmentally-insured and guaranteed lending programs.
U S B M C is the most active lender participating in the
Oregon State Bond Program, which offers lowerthan-market interest rates to home buyers in targeted
low-income areas and to first-time home buyers in
non-targeted areas. U S B M C also is the second most
active lender participating in the Mortgage Credit
Certificate Program which makes home purchases
more affordable to first-time home buyers or those
buying in target neighborhoods.
Furthermore,
U S B M C participates in the Portland Organizing
Project's H o m e Aflfordability Program, which offers
modified underwriting guidelines to home buyers
with incomes below the median income in the county
in which they live. U S B M C has closed more loans
under this program than any other lender.
In 1990, U S B M C began participating in a joint
program with the General Electric Mortgage Insurance
Company to make home purchases possible for buyers
with less than the median income in the county in
which they live. Pursuant to a program sponsored by
the Federal National Mortgage Association, USBMC
has agreed to lend up to $10 million to senior citizens
for a variety of real estate transactions. Finally,
U S B M C is developing a mortgage program even more
flexible in its requirements than those programs in
which it is currently participating. In this program the
underwriting fee will be waived, and the closing costs
may be financed.
Moreover, U S B O has taken steps to address many
of the concerns raised by Protestant. U S B O has been
working with Protestant in an effort to resolve the
issue of closing costs and interest rates for the mortgage loans that will be offered pursuant to the national
demonstration project and to modify the Portland
Organizing Project/Home Aflfordability Program to
make it more attractive to low- and moderate-income
individuals. In response to Protestant's assertion regarding loan fees on small loans, USBO has ended the
practice of charging higher fees for loans with a small
principal amount.
In addition, Bancorp intends to serve the credit
needs of low- and moderate-income persons through
the proposed bank. In light of these and all of the
other facts of record, the Board believes that the
CRA record of Bancorp and U S B O is consistent with
approval of this application. For the foregoing reasons, and based upon the overall CRA record of
Bancorp and U S B O and other facts of record, the
Board concludes that convenience and needs considerations, including the record of performance under
the CRA of Bancorp, U S B O and Bancorp's other
subsidiary banks, are consistent with approval of this
application.
Based on the foregoing and other facts of record, the
Board has determined that the applications are in the
public interest and 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, and U . S . Bank shall be
opened for business not later than six months after the
effective date of this Order. The latter two periods may
be extended for good cause by the Board or the
Federal Reserve Bank of San Francisco pursuant to
delegated authority.
By order of the Board of Governors, effective
October 19, 1990.
Voting for this action: Chairman Greenspan and Governors
Seger, Angell, LaWare, and Mullins. Absent and not voting:
Governor Kelley.
JENNIFER J. JOHNSON
Associate
Secretary
of the Board
Orders Issued Under Section 4 of the Bank
Holding Company Act
H y - V e e F o o d Stores, Inc.
Chariton, I o w a
Order Approving Exemption
Activities of Bank Holding
of Nonbanking
Company
Hy-Vee Food Stores, Inc., Chariton, Iowa ("HyVee"), a bank holding company within the meaning of
the Bank Holding Company Act ( " B H C Act"), has
applied for the Board's approval under section 4(d) of
the BHC Act for an exemption from the prohibitions of
section 4 of the BHC Act (relating to nonbanking
activities and acquisitions). Hy-Vee, which owns approximately 96.6 percent of the voting shares of the
National Bank and Trust Company of Chariton, Chariton, Iowa ("Bank"), has been exempt from the nonbanking provisions of the BHC Act on the basis of
grandfather rights granted under section 4(a)(2) of the
BHC Act, which permit Hy-Vee to continue to engage
in those nonbanking activities it has engaged in since
June 30, 1968. Hy-Vee proposes to acquire certain
going concerns, which would cause it to lose its
grandfather rights under section 4(a)(2). Hy-Vee seeks
Legal Developments
an exemption under section 4(d) in order to retain
ownership of Bank.
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (55 Federal Register 34,347 (1990)). The
time for filing comments has expired, and the Board
has considered the application and all the comments
received in light of the factors set forth in section 4(d)
of the BHC Act.
Section 4(d) of the BHC Act provides that to the
extent such action would not be substantially at variance with the purposes of the BHC Act and subject to
such conditions as the Board considers necessary to
protect the public interest, the Board may grant an
exemption from the provisions of section 4 of the BHC
Act to a bank holding company that controlled one
bank prior to July 1, 1968, and has not thereafter
acquired control of any other bank, in order:
(1) to avoid disrupting business relationships that
have existed over a long period of years without
adversely affecting the banks or communities involved;
(2) to avoid forced sales of small locally owned
banks to purchasers not similarly representative of
community interests; or
(3) to allow retention of banks that are so small in
relation to the holding company's total interests and
so small in relation to the banking market to be
served as to minimize the likelihood that the bank's
powers to grant or deny credit may be influenced by
a desire to further the holding company's other
interests.
Hy-Vee has applied under the first two grounds. In
1972, the Board had denied an application by Hy-Vee
for an exemption under section 4(d). (58 Federal
Reserve Bulletin 677 (1972)).
Hy-Vee, an employee-owned company headquartered at Chariton, Iowa, owns and operates 153 supermarkets in Iowa, Missouri, Minnesota, South Dakota,
Nebraska, Kansas, and Illinois, and 20 retail drug
stores, all in Iowa. Hy-Vee originally obtained control
of Bank in 1963 through Hy-Vee's employee profitsharing trust.
Hy-Vee has controlled Bank for 27 years, and has
not acquired any additional banks during that period.
However, Hy-Vee has made several substantial capital contributions to Bank. Hy-Vee has never borrowed
from Bank, but uses Bank for deposit and other
services. As a result, Bank benefits from a relatively
high volume of lower cost deposits and receives fee
income that would otherwise not be obtainable by a
bank of such a relatively small size. Hy-Vee has
shared its expertise by providing personnel services to
Bank without charge. Hy-Vee has never caused Bank
to pay dividends, and Hy-Vee has reimbursed Bank
1057
for Hy-Vee's tax savings through its association with
Bank. 1
In addition, Bank has been able to offer its products
and services to approximately 24,000 Hy-Vee employees and family members. Approximately 30 percent of
Bank's loan and deposit customers are Hy-Vee employees. Finally, during the period of the farm crisis
from 1983 through 1986, when Bank was in less than
satisfactory financial condition, the Comptroller of the
Currency permitted Bank to make a substantial financial contribution to a community center in Chariton,
Iowa, due to Hy-Vee's underlying financial commitment to Bank.
Currently, Bank appears to be in satisfactory financial condition, and the record contains nothing to
suggest that Hy-Vee has abused its relationship with
Bank or misused Bank's resources for the benefit of
Hy-Vee's other interests. The record does not indicate
that permitting Hy-Vee's relationship with Bank to
continue would adversely affect Bank or the community involved.
Hy-Vee argues that a forced sale of Bank could
result in loss of local control of Bank. Hy-Vee commissioned a consultant for the purpose of determining
opportunities for the sale of Bank, and was advised
that such opportunities for Bank were virtually nonexistent at this time. In 1982, Hy-Vee received an offer
to acquire Bank, but the offer was withdrawn due to
the financial condition of Bank at that time. Hy-Vee
has provided substantial evidence that any potential
buyer for Bank would be less representative of the
community's interests than Hy-Vee. In this regard,
Hy-Vee is uniquely representative of the Chariton
community. Hy-Vee is an employee-owned company
that employs an estimated 40 percent of the workforce
of Chariton, Iowa, where it is headquartered, and 20
percent of the workforce of Lucas County, Iowa.
In light of the unique circumstances of this case,
including Hy-Vee's substantial capital contributions to
and consistent support of Bank, Bank's location in a
small rural market, the likely effects of not granting an
exemption on the local community, and other considerations reflected in the record, the Board has concluded that granting an exemption to Hy-Vee would
not be substantially at variance with the purposes of
the BHC Act nor adverse to the public interest.
Accordingly, an exemption pursuant to section 4(d) of
the BHC Act is hereby granted subject to the condition
that this determination may be revoked if the facts
upon which it is based change in any material respect.
Further, the provision of any credit, property, or
1. Hy-Vee has annually reimbursed to Bank the income tax savings
resulting from Hy-Vee's use of Bank's net operating loss.
1058 Federal Reserve Bulletin • December 1990
service by Hy-Vee or any subsidiary thereof shall not
be subject to any condition which, if imposed by a
bank, would constitute an unlawful tie-in arrangement
under section 106 of the Bank Holding Company Act
Amendments of 1970. The determination herein is
subject to the Board's authority to require modification or termination of the activities of Hy-Vee or any
of its nonbanking 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
evasions thereof.
By order of the Board of Governors, effective
October 11, 1990.
Voting for this action: Chairman Greenspan and Governors
Seger, Angell, Kelley, and Mullins. Absent and not voting:
Governor LaWare.
JENNIFER J. JOHNSON
Associate
Secretary
of the Board
Norwest Corporation
Minneapolis, Minnesota
Order Approving
Agency
the Acquisition
of a Title
Insurance
Norwest Corporation, Minneapolis, Minnesota ("Norwest"), a bank holding company within the meaning of
the Bank Holding Company Act ("BHC Act"), has
applied under section 4(c)(8) of the BHC Act
(12 U.S.C. § 1843(c)(8)) and section 225.23(a) of the
Board's Regulation Y (12 C.F.R. 225.23(a)) for the
Board's approval to acquire all the outstanding shares
of American Land Title Co., Inc., Omaha, Nebraska
("American Land Title"), and through American
Land Title, engage in title insurance agency and real
estate settlement activities in Nebraska. 1
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published (55 Federal Register 35,184 (1990)).
The time for filing comments has expired, and the
Board has considered the application and all comments received in light of the public interest factors set
forth in section 4(c)(8) of the BHC Act.
Norwest, with total consolidated assets of $26.8
billion, is the second largest banking organization in
Minnesota. 2 Applicant controls 34 banking subsidiar-
1. American Land Title also performs title abstracting activities,
including title searches of real estate. The Board believes that title
abstracting is incidental to conducting title insurance agency activities, because it provides necessary information needed to authorize
the sale of a title insurance policy.
2. Asset data are as of June 30, 1990.
ies in ten states in the Midwest and owns a number of
subsidiaries engaged in nonbanking activities.
The Board has previously determined that title
insurance agency activities are permissible under section 4(c)(8)(G) of the BHC Act ("exemption G"),
which authorizes bank holding companies that engaged in insurance agency activities, with Board approval, prior to 1971, to engage, or control a company
engaged, in general insurance agency activities. 3 Norwest qualifies for exemption G rights. 4
American Land Title also provides the following
real estate settlement services:
(1) reviewing the status of the title in the title
commitment, resolving any exceptions to the title,
and reviewing the purchase agreement to identify
any requirements in it in order to ensure compliance
with them;
(2) verifying payoffs on existing loans secured by the
real estate and verifying the amount of and then
calculating the prorating of special assessments and
taxes on the property;
(3) obtaining an updated title insurance commitment
to the date of closing, preparing the required checks,
deeds, affidavits, and obtaining any authorization
letters needed;
(4) establishing a time and place for the closing,
conducting the closing, and ensuring that all parties
properly execute all appropriate documents and
meet all commitments;
(5) collecting and disbursing funds for the parties,
holding funds in escrow pending satisfaction of
certain commitments, preparing the H U D settlement statement, the deed of trust, mortgage notes,
the Truth-in-Lending statement, and purchaser's
affidavits; and
(6) recording all these documents as required under
law.
In order to approve an application submitted under
section 4(c)(8) of the BHC Act, the Board is required
to determine that the proposed activity is "so closely
related to banking as to be a proper incident thereto."
12 U.S.C. § 1843(c)(8). In considering whether a
proposed activity would be a proper incident to banking, the Board is required to determine that the performance of the proposed activity can reasonably be
3. See First Wisconsin Corporation, 75 Federal Reserve Bulletin 31
(1989); affirmed in American Land Title Association v. Board of
Governors, 892 F.2d 1059 (D.C. Cir. 1989).
4. In 1959, Norwest received Board approval to retain its general
insurance agency subsidiaries and, accordingly, is a grandfathered
bank holding company for purposes of exemption G. Northwest
Bancorporation, 45 Federal Reserve Bulletin 963 (1959); Norwest
Corporation, 70 Federal Reserve Bulletin 470 and 235 (1984).
Legal Developments
expected to produce benefits to the public that outweigh possible adverse effects. Id.
Based on guidelines established in the National
Courier case, a particular activity may be found to be
"closely related to banking" for purposes of section
4(c)(8) of the BHC Act if:
(i) banks generally do in fact conduct the proposed activity;
(ii) banks generally provide services that are operationally or functionally so similar to the proposed activity as to equip them particularly well
to provide the proposed activity; or
(iii) banks generally provide services that are so
integrally related to the proposed service as to
require their provision in a specialized form. 5
In this regard, real estate settlement services are, in
fact, provided by Norwest's bank subsidiaries in connection with their origination of mortgage loans, and
banks in Nebraska are generally permitted to conduct
real estate settlement activities. 6 Moreover, bank
holding companies and banks have been authorized to
provide real estate services that are operationally or
functionally so similar to the proposed services as to
equip them particularly well to provide real estate
settlement services. The Board has approved the
provision of escrow and distribution services by bank
holding companies under land installment sales contracts. 7 In addition, banks routinely prepare collateral
security agreements and other documentation required
to close loans in accordance with federal and state
lending requirements as part of the general lending
activities authorized under the Board's Regulation Y.
The Board also believes that aspects of the proposed
real estate settlement activities are directly linked to
permissible title insurance agency activities by bank
holding companies. 8 These activities can directly affect the risks insured against under a title insurance
policy, and title insurance agents have special experience in assessing potential title defects that may arise
at a real estate settlement. Accordingly, title insurance
agents have the expertise to generally engage in real
estate settlements.
5. National Courier Ass'n v. Board of Governors, 516 F.2d 1229,
1237 (D.C. Cir. 1975). The Board may also consider any other factor
that demonstrates a reasonable or close connection or relationship of
the activity to banking. 49 Federal Register 794, 806 (1984); Securities
Industry Ass'n v. Board of Governors, 104 S. Ct. 3003, 3005-06 n.5
(1984).
6. Bank commissioners in Nebraska, Kansas, Colorado, Iowa,
Wyoming, and South Dakota have indicated that banks are generally
permitted to conduct real estate settlements.
7. See Wells Fargo & Co. (Grayco Land Escrow, Ltd.), 59 Federal
Reserve Bulletin 122 (1973); 59 Federal Register 1236 (1973).
8. For example, the Board has approved the preparation of a title
insurance binder in performing title insurance agency activities. See
First Wisconsin Corporation, supra.
1059
For these reasons, the proposed real estate settlement activities conducted through a permissible title
insurance agency are closely related to banking for
purposes of section 4(c)(8) of the BHC Act.
In order to approve this application, the Board is
required to determine that the performance of the
proposed activities by Norwest is a proper incident to
banking and "can reasonably be expected to produce
benefits to the public, such as greater convenience,
increased competition, or gains in efficiency, that
outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking
practices." 12 U.S.C. § 1843(c)(8).
Consummation of the proposal can reasonably be
expected to result in public benefits that outweigh
adverse effects. Norwest's proposal may be expected
to result in increased convenience resulting from the
offering of additional services to customers. 9 In addition, the activities of American Land Title represent a
small share of the total market for these services, and
there are numerous competitors in the title insurance
agency and real estate settlement markets. Accordingly, the Board believes that the proposed activities
are a proper incident to banking.
There is also no evidence in the record to indicate
that consummation of this proposal is likely to result in
any significant adverse effects, such as undue concentration of resources, decreased or unfair competition,
conflicts of interests, or unsound banking practices.
Accordingly, the Board has determined that the balance of public interest factors it must consider under
section 4(c)(8) of the BHC Act is favorable and consistent with approval.
Based upon the foregoing and all the other facts of
record, the Board has determined that the proposed
application should be, and hereby is, approved. This
determination is subject to all of the conditions set
forth in the Board's Regulation Y, including sections
225.4(d) and 225.23, and the Board's authority to
require such modification or termination of the activities of a holding company or any of its subsidiaries as
the Board finds necessary to assure compliance with,
or to prevent evasion of, the provisions and purposes
of the BHC Act and the Board's regulations and orders
issued thereunder.
The transaction shall be consummated not later than
three months after the effective date of this Order,
9. Norwest has committed to advise its customers that they are not
required to purchase its real estate settlement services in connection
with the purchase of title insurance in a real estate transaction. In
addition, section 106 of the Bank Holding Company Act Amendments
of 1970 would generally prohibit Norwest from tying extensions of
credit to the purchase of services from American Land Title.
1060 Federal Reserve Bulletin • December 1990
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Minneapolis,
pursuant to delegated authority.
By order of the Board of Governors, effective
October 15, 1990.
Voting for this action: Chairman Greenspan and Governors Seger, LaWare, and Mullins. Absent and not voting:
Governors Angell and Kelly.
JENNIFER J. JOHNSON
Associate
Secretary
of the Board
South Carolina National Corporation
Columbia, South Carolina
Order Approving
Association
the Acquisition
of a
Savings
South Carolina National Corporation, Columbia,
South Carolina ("SCNC"), a bank holding company
within the meaning of the Bank Holding Company Act
("BHC Act"), has applied pursuant to section 4(c)(8)
of the BHC Act (12 U.S.C. § 1843(c)(8)) and section
225.23(a) of the Board's Regulation Y (12 C.F.R.
225.23(a)), to acquire Atlantic Savings Bank, FSB,
Hilton Head Island, South Carolina ("Atlantic"), a
savings association. SCNC has also applied for Board
approval under these same sections to acquire indirectly Atlantic Mortgage Corporation of South Carolina, Inc., Hilton Head Island, South Carolina, and
thereby engage in mortgage banking activities permissible under the Board's Regulation Y. 12 C.F.R.
225.25(b)(1).
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (55 Federal Register 26,507 (1990)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the public interest factors set forth in
section 4(c)(8) of the BHC Act.
The Board has determined that the operation of a
savings association is closely related to banking and
permissible for bank holding companies. 12 C.F.R.
225.25(b)(9). In making this determination, the Board
required that savings associations acquired by bank
holding companies conform their direct and indirect
activities to those permissible for bank holding companies under section 4 of the BHC Act. SCNC has
committed to conform all activities of Atlantic to the
requirements of section 4 and Regulation Y. In order
to approve the application, the Board also is required
by section 4(c)(8) of the BHC Act to determine that the
ownership and operation of Atlantic by SCNC "can
reasonably be expected to produce benefits to the
public . . . 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).
SCNC, which operates one subsidiary bank, is the
largest depository organization in South Carolina,
controlling deposits of $4.7 billion, representing 26.7
percent of the total deposits in the state. 1 SCNC also
engages through several subsidiaries in permissible
nonbanking activities. Atlantic, which operates two
offices, both in Hilton Head Island, South Carolina, is
the 28th largest depository organization in South Carolina, controlling deposits of $63.6 million. After consummation of the proposed acquisition, S C N C would
remain the largest depository organization in South
Carolina with aggregate deposits of $4.7 billion, representing 27 percent of the total deposits in the state. In
the Board's view, consummation of the proposal
would not have a significantly adverse effect on the
concentration of resources in depository institutions in
South Carolina.
SCNC and Atlantic compete directly in one banking
market in South Carolina. In the Beaufort County
banking market, 2 S C N C is the second largest of eleven
depository institutions, controlling $155.9 million in
deposits, representing 23.7 percent of deposits of
banks and thrift institutions in the market ("market
deposits"). Atlantic is the seventh largest depository
institution, controlling $55.1 million in deposits, representing 4.2 percent of market deposits. Upon consummation of this proposal, S C N C would become the
largest depository organization in the Beaufort County
market, with 30.7 percent of market deposits. 3 The
Beaufort County banking market is considered moderately concentrated, with the three largest depository
institutions currently controlling 67.2 percent of the
market deposits. After consummation of the proposal,
the market would be highly concentrated, and the
Herfindahl-Hirschman Index ("HHI") would increase
by 279 points, to a level of 1977. 4
1. State deposit data are as of December 31, 1989. Market data are
as of June 30, 1989.
2. The Beaufort County banking market consists of Beaufort
County, South Carolina.
3. The pre-consummation market share statistics are based on
calculations in which the deposits of Atlantic and all other savings
associations are included at 50 percent. Upon consummation, Atlantic
will be merged with a commercial banking organization, thus, on a pro
forma basis, the deposits of Atlantic are included at 100 percent, while
the deposits of other savings associations continue to be included at 50
percent unless otherwise indicated.
4. 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 Justice Department is unlikely to challenge a
merger if an increase in the HHI is less than 100 points. Any market
in which the post-merger HHI is over 1800 is considered highly
concentrated, and the Justice Department is likely to challenge a
Legal Developments
Although this proposal would eliminate some existing competition in the Beaufort County banking market, the Board believes that a number of factors
mitigate the potential anticompetitive effects of this
proposal. The savings associations in the market actively compete with commercial banks in the market,
and have increased their share of market deposits from
19.3 percent in 1984 to 25.5 percent in 1989. Each of
the remaining thrifts offers a full range of time and
demand deposit services, and has been active in
making commercial loans. 5
Based on the size, market share, and activities of
Atlantic in this market, the Board has concluded that
thrifts exert a significant competitive influence that
mitigates the anticompetitive effects of the proposal. 6
In addition, the Board notes that ten depository institutions would remain as competitors upon consummation of the proposal, and that the Beaufort County
market is attractive for entry by new banking competitors. 7
In light of the above considerations, and based on all
the facts of record, the Board has determined that
consummation of this proposal is not likely to result in
any other significantly adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interest, or unsound banking
practices. The financial and managerial resources and
future prospects of SCNC, its bank subsidiary, and
Atlantic are consistent with approval. Upon consummation of this proposal, SCNC, its bank subsidiary,
and Atlantic would meet applicable capital requirements. Accordingly, based on consideration of all the
merger that increases the HHI by more than 50 points unless other
factors indicate that the merger will not substantially lessen competition. The Justice Department has informed the Board that a bank
merger or acquisition generally will not be challenged (in the absence
of other factors indicating anticompetitive effects) unless the postmerger HHI market is at least 1800 and the merger increases the HHI
by at least 200 points. The Justice Department has stated that the
higher than normal HHI thresholds for screening bank mergers for
anticompetitive effects implicitly recognizes the competitive effect of
limited-purpose lenders and other non-depository financial entities.
5. Nationwide, thrift institutions hold, on average, 4.5 percent of
their assets in consumer loans and 2.8 percent in commercial loans.
On average, consumer loans represent 8.4 percent of the assets of the
thrifts remaining in this market, and commercial and industrial loans
represent 6.9 percent of assets in these thrifts.
6. If 100 percent of thrift deposits are included in the calculation of
market concentration, SCNC would control 28 percent of the market
deposits upon consummation. The HHI would increase by 302 points
from 1421 to 1723. The Board previously has indicated that it may be
appropriate in light of market factors in a specific market to include
thrift deposits at a level greater than 50 percent when analyzing the
competitive effects of a proposal. See, e.g., Fleet Financial Group,
Inc., 74 Federal Reserve Bulletin 62, 64 (1988); Hartford National
Corporation, 73 Federal Reserve Bulletin 720, 721 (1987).
7. The Beaufort County market consists of Beaufort County and is
an area in which population growth, per capita personal income,
deposits per banking oflice, and the rate of deposit growth exceed the
comparable averages of similar South Carolina banking markets.
1061
facts of record, the Board has determined that the
balance of the public interest factors that it is required
to consider under section 4(c)(8) of the BHC Act is
favorable and consistent with approval of SCNC's
application to acquire Atlantic.
Accordingly, the Board has determined that the
proposed application pursuant to section 4(c)(8) of the
BHC Act should be, and hereby is, approved. This
determination is subject to all of the conditions set
forth in the Board's Regulation Y, including sections
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 bank holding company or any of its
subsidiaries as the Board finds necessary to assure
compliance with, or to prevent evasion of, the provisions and purposes of the BHC Act and the Board's
regulations and orders issued thereunder.
The transactions approved in this Order shall be
made not later than three months after the effective
date of this Order, unless such period is extended for
good cause by the Board or by the Federal Reserve
Bank of Richmond, pursuant to delegated authority.
By order of the Board of Governors, effective
October 15, 1990.
Voting for this action: Chairman Greenspan and Governors
Seger, La Ware and Mullins. Absent and not voting: Governors Angell and Kelley.
JENNIFER J. JOHNSON
Associate
Secretary
of the
Board
Orders Issued Under Sections 3 and 4 of the
Bank Holding Company Act
STICHTING PRIORITEIT ABN AMRO
HOLDING
Amsterdam, The Netherlands
Stichting Administratiekantoor ABN AMRO
HOLDING
Amsterdam, The Netherlands
ABN AMRO Holding N.V.
Amsterdam, The Netherlands
Order Approving
Companies
Acquisition
of Two Bank
Holding
STICHTING PRIORITEIT A B N AMRO HOLDING,
Stichting Administratiekantoor A B N AMRO HOLDING, and their subsidiary, A B N AMRO Holding N . V .
(collectively, " A B N Holdings"), all of Amsterdam,
The Netherlands, foreign banking organizations subject to the Bank Holding Company Act ( " B H C Act"),
1062 Federal Reserve Bulletin • December 1990
have applied for the Board's approval under section
3(a)(1) of the BHC Act (12 U.S.C. § 1842(a)(1)) to
become bank holding companies by acquiring 100
percent of the voting shares of Algemene Bank Nederland N.V. ("Algemene") and Amsterdam Rotterdam Bank N . V . ("Amro"), both of Amsterdam, The
Netherlands, both of which are bank holding companies with respect to U.S. banks.
A B N Holdings has also applied for the Board's
approval under section 4(c)(8) of the BHC Act
(12 U.S.C. § 1843(c)(8)) to acquire certain nonbanking
subsidiaries of Algemene and Amro. 1 A B N Holdings
has also provided notice of its intention to acquire
indirectly EAB Finance N . V . , Amsterdam, The Netherlands, under section 4(c)(13) of the BHC Act
(12 U.S.C. § 1843(c)(13)). In addition, A B N Holdings
has applied to acquire A B N Bank International USA
Inc., Chicago, Illinois, a corporation chartered pursuant to section 25(a) of the Federal Reserve Act (the
"Edge Act") (12 U.S.C. §§ 611-613).
Notice of the applications, affording interested persons an opportunity to submit comments, has been
duly published (55 Federal Register 25,882 (1990)).
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 BHC Act, the considerations specified in section 4(c) of the BHC Act, and the purposes
of the Edge Act.
Algemene and Amro, both large Dutch banks, have
entered into an agreement to form A B N Holdings to
acquire both of these banks. The agreement has been
approved by the Central Bank of The Netherlands. An
application is required under the BHC Act because
Algemene and Amro each own banks in the United
States. Algemene owns ten banks in Illinois and Amro
owns one bank in N e w York. 2
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 "specif-
1. A list of the nonbanking subsidiaries that ABN Holdings has
proposed to acquire pursuant to section 4(c)(8) of the BHC Act is set
forth in the Appendix.
2. Upon consummation of the proposed transaction, Applicants will
acquire the following bank holding companies and bank subsidiaries of
Amroon, Chicago, Illinois, and thereby indirectly acquire LaSalle
Bank Lake View, Chicago, Illinois; LaSalle Bank of Lisle, Lisle,
Illinois; LaSalle National Bank, Chicago, Illinois; LaSalle Bank
Northbrook, Northbrook, Illinois; LaSalle Northwest National Bank,
Chicago, Illinois; LaSalle Bank Westmont, Westmont, Illinois; and
Exchange Bancorp, Inc., Chicago, Ilange Bank of DuPage, Oak
Brook, Illinois; Exchange Bank of River Oaks, Calumet City, Illinois;
Exchange Bank of Lake County, Vernon Hills, Illinois; and European
American Bancorp, New York, New York, and thereby indirectly
acquire European American Bank, New York, New York.
ically authorized by the statute laws of the State in
which bank is located, by language to that effect and
not merely by implication." 3 For purposes of the
Douglas Amendment, A B N Holdings's principal state
of operation will be Illinois, where all of Algemene's
subsidiary banks are located. 4 Amro is a bank holding
company located in New York.
New York interstate banking law expressly provides
that out-of-state bank holding companies may acquire
banks located in New York upon the prior approval of
the New York superintendent of banks. 5 The New
York superintendent of banks has reviewed this proposal and determined to approve it. In granting approval of an interstate acquisition of a New York
bank, the superintendent is generally required to find
that the laws of the state where the out-of-state holding
company is located permit the acquisition of banks in
that state by New York bank holding companies on a
reciprocal basis. 6 Illinois will permit interstate acquisitions on a nationwide basis effective December 1,
1990.7
While the Illinois nationwide reciprocal banking
statute is not yet effective, the N e w York state banking code provides that the N e w York banking board
may waive or vary any requirement of New York
banking law if the board finds that such variation is
"necessary because of the existence of unusual and
extraordinary circumstances." 8 In this case, the New
York banking board has determined to waive the
reciprocity finding that the superintendent ordinarily
must make to approve the transaction. In determining
to waive this finding, the N e w York banking board
considered the predominately foreign nature of the
proposed transaction; the fact that Illinois has enacted
a law providing for reciprocal banking acquisitions
with New York that will become effective in December of this year; and the potential adverse effects on
Algemene and Amro of delaying until December consummation of the proposed transaction.
Because the statute laws of New York authorize the
interstate acquisition of N e w York banks in any case
in which the New York superintendent's approval has
been given and the N e w York superintendent has
given that approval in this case after the N e w York
3. 12 U.S.C. § 1842(d).
4. A bank holding company's principal state of operation for
purposes of the Douglas Amendment is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted (based on deposits) on July 1, 1966, or the date
on which the company became a bank holding company, whichever is
later.
5. N.Y. Banking Law, § 142-b.l. (McKinney 1990).
6. Id.
1. 111. Rev. Stat. ch. 17, para. 2510.01 (Smith-Hurd Supp. 1989),
effective December 1, 1990.
8. N.Y. Banking Law § 14.1.(p) (McKinney 1990).
Legal Developments
banking board lawfully waived the requirement that
the New York superintendent make a finding regarding
the reciprocity of the Illinois statute, the Board concludes that the proposed transaction is "specifically
authorized" under New York law. Accordingly, the
Board's approval of this proposal is not barred by the
Douglas Amendment.
Algemene, with consolidated assets equivalent to
approximately $90.7 billion, is the 47th largest banking
organization in the world and the third largest banking
organization in The Netherlands. 9 In the United
States, Algemene maintains, in addition to its ten
subsidiary banks, branches in Chicago, New York and
Pittsburgh; limited branches in Boston and Seattle;
agencies in Atlanta, Houston, Miami, Los Angeles and
San Francisco; and an Edge corporation, ABN Bank
International USA Inc., Chicago, Illinois, with a
branch in Houston.
Amro, with consolidated assets equivalent to approximately $94.1 billion, is the 48th largest banking
organization in the world and the second largest banking organization in The Netherlands. In the United
States, Amro maintains, in addition to European
American Bank, Uniondale, New York, a branch in
New York, and representative offices in Chicago,
Houston, and Los Angeles. ABN Holdings will conform the deposit-taking activities of Amro's New York
branch to those of an Edge corporation under section
25(a) of the Federal Reserve Act (12 U.S.C. § 611
et seq.).xo
9. Banking data are as of December 31, 1989. Worldwide ranking is
as of December 31, 1988.
10. ABN Holdings has indicated that it intends to designate Illinois
as its home state for purposes of the International Banking Act
("IBA") (12 U.S.C. § 3101 etseq.). Illinois is currently the home state
of Algemene. Section 5 of the IBA generally provides that no foreign
bank may establish a state branch outside of its home state unless the
establishment of such branch is specifically authorized by state law
and the foreign bank agrees to limit the deposit-taking activities of
such branch to those permissible for an Edge corporation. Foreign
banks may also retain branches established before July 27, 1978.
The Board has previously determined that in an acquisition or
merger of foreign banking organizations, only the surviving organization may retain its out-of-home state branches as full-service
branches. Lloyds Bank Pic, 72 Federal Reserve Bulletin 841 (1986);
The Mitsui Bank, Limited, 76 Federal Reserve Bulletin 381 (1990). In
fact, the proposed transaction has the same effect in the United States
as a merger in which Algemene is the surviving company since
Algemene has a larger presence in the United States than Amro in
terms of controlled U.S. deposits, and ABN Holdings has indicated
that it will for purposes of the IBA retain Illinois, Algemene's current
home state, as ABN Holdings's home state following consummation
of the proposed transaction. ABN Holdings has also represented that
Algemene and Amro will merge sometime in the near future. ABN
Holdings's retention of Algemene's grandfathered branches will not
increase the number of foreign banks possessing grandfather rights
nor will it increase the number of Algemene's grandfathered branches.
Accordingly, the Board has determined that ABN Holdings may
succeed to Algemene's grandfathered branches. Since Amro's branch
is located outside of ABN Holdings's home state, ABN Holdings has
agreed to conform within six months the deposit-taking activities of
1063
The subsidiary banks of Algemene and Amro do not
currently compete directly in any state or in any
banking market. The New York branch of Algemene,
however, currently competes in the Metropolitan New
York-New Jersey banking market 11 with Amro's subsidiary bank holding company, European American
Bancorp, Uniondale, New York ("EAB"), and its
subsidiary bank, European American Bank, as well as
Amro's New York branch.
Algemene's New York branch controls less than
one percent of the total deposits in commercial banking organizations in the Metropolitan New York-New
Jersey banking market. Amro's New York branch
controls less than one percent of the total deposits in
commercial banking organizations in the market, and
EAB controls less than two percent of the total deposits in commercial banking organizations in the market.
Upon consummation of the proposed transaction,
A B N Holdings would control less than four percent of
the total deposits in commercial banking organizations
in the market and the market would remain unconcentrated. On the basis of the facts of record, the Board
concludes that consummation of this proposal would
not have a significantly adverse effect on competition
in the Metropolitan New York-New Jersey banking
market.
Section 3(c) of the BHC Act requires in every case
that the Board consider the financial resources of the
applicant organization. In this case, the Board notes
that the primary capital of A B N Holdings, after making certain adjustments to reflect differences in accounting practice, would be approximately at the
minimum capital level for U.S. multinational bank
holding companies set forth in the Board's Capital
Adequacy Guidelines. The Board has also considered
that the pro forma risk-based capital ratios of ABN
Holdings exceed the 1992 minimum standards adopted
by the Basle Committee. In addition, this proposal
represents a consolidation of two foreign banking
organizations and does not result in the expansion of
banking or nonbanking activities in the United States.
In view of these and other facts of record, the Board
has determined that financial factors are consistent
with approval of the applications.
The managerial resources and future prospects of
ABN Holdings are consistent with approval. The
Amro's New York branch to those of an Edge corporation, consistent
with previous Board decisions.
11. The Metropolitan New York-New Jersey banking market includes New York City; Nassau, Orange, Putnam, Rockland, Suffolk,
Sullivan, and Westchester Counties in New York; Bergen, Essex,
Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic,
Somerset, Sussex, Union, and Warren Counties in New Jersey; and
parts of Fairfield County in Connecticut. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (1984),
this market is considered unconcentrated.
1064
Federal Reserve Bulletin • December 1990
Board has also determined that considerations relating
to the convenience and needs of the community to be
served are consistent with approval.
A B N Holdings has also applied, pursuant to section 4(c)(8) of the BHC Act, to acquire certain
nonbanking subsidiaries of Algemene and Amro. The
Board has determined by regulation or order that
each of these activities is permissible for bank holding companies under section 4(c)(8) of the B H C Act,
and A B N Holdings proposes to conduct these activities in accordance with the Board's regulations and
orders. The nonbanking activities in which both
Algemene and Amro compete are conducted in geographic markets that are regional or national in
scope. These markets are served by numerous competitors, and neither Algemene nor Amro has a
significant market share. Accordingly, the Board
concludes that consummation of this 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 consummation of this
proposal will result in undue concentration of resources, decreased or unfair competition, conflicts of
interests, unsound banking practices, or any other
significantly adverse effects. 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
A B N Holdings's application to acquire the nonbanking subsidiaries of Algemene and Amro.
The financial and managerial resources of A B N
Holdings are consistent with approval of its indirect
acquisition of A B N Bank International U S A Inc. The
acquisition would result in the continuation of the
international services currently provided, and would
be in the public interest. Accordingly, the Board finds
that the continued operation of A B N Bank International U S A Inc. upon acquisition by A B N Holdings is
consistent with the purposes of the Edge Act.
Based on the foregoing and other facts of record, the
Board has determined that consummation of the proposed transaction would be consistent with the public
interest. Accordingly, the Board has determined that
the applications under sections 3 and 4 of the BHC Act
and under the Edge Act should be, and hereby are,
approved. The bank acquisitions shall not be consummated before the thirtieth calendar day following the
effective date of this Order, and the proposed bank and
nonbank acquisitions 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
Chicago, acting pursuant to delegated authority. The
determinations as to the nonbanking activities are
subject to all of the conditions contained in the
Board's 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, or
prevent evasions of, the provisions and purposes of
the BHC Act and the Board's regulations and orders
issued thereunder.
By order of the Board of Governors, effective
July 23, 1990.
Voting for this action: Chairman Greenspan and Governors
Seger, Angell, Kelley, La Ware, and Mullins. Absent and not
voting: Governor Johnson.
JENNIFER J. JOHNSON
Associate
Secretary
of the Board
Appendix
Nonbanking
Subsidiaries
To Be
Acquired
Pierson Capital Management Inc., Philadelphia, Pennsylvania, which engages in investment advisory and
discretionary portfolio management activities for high
net worth individuals, pension funds, trusts and other
institutional clients; The Private Bank & Trust, N . A . ,
Miami, Florida, which engages in trust and investment
advisory services and discretionary management of
financial assets primarily for wealthy individuals living
outside the United States; Amsterdam Pacific Corporation, San Francisco, California, which engages in
portfolio investment advisory services for investment
partnerships, feasibility studies for corporations, and
valuation services; Amro Securities, Inc., N e w York,
N e w York, which engages in underwriting and dealing
in bank eligible securities and to a limited extent in
bank ineligible securities, private placement and riskless principal activities, full-service brokerage activities, and various investment advisory related activities; Pierson Heldring & Pierson Investment Finance
(U.S.) Inc., N e w York, N e w York, which engages in
private placement and riskless principal activities,
full-service brokerage activities, and various investment advisory related activities; DBI Holding, Inc.,
N e w York, N e w York, which engages in full-service
brokerage activities and riskless principal activities;
Henry Krieger/DBI, L.P., N e w York, N e w York,
which engages in full-service brokerage activities and
riskless principal activities; Exchange Securities
Corp., Hallandale, Florida, which engages in providing a secondary market for certificates of deposits
Legal Developments
issued by the subsidiary banks of Exchange Bancorp,
Inc., underwriting and dealing in government obligations and money market instruments, and brokerage
activities; LaSalle National Services Co., Inc., Chicago, Illinois, which engages in providing data processing and courier services; LaSalle National Mortgage Co., Inc., Chicago, Illinois, which engages in
mortgage banking; A B N Capital Markets Corp., New
York, New York, which engages in providing investment advisory, brokerage services and underwriting
and dealing in government obligations; Lease Plan &
Holding U.S.A., Atlanta, Georgia, which engages in
ORDERS ISSUED UNDER THE FINANCIAL
ACT ("FIRREA
ORDERS")
1065
providing lease financing; A B N Credit Corporation,
Chicago, Illinois, which engages in providing financing; LaSalle National Trust Company, N.A., Chicago,
Illinois, which engages in fiduciary services. The
Board has determined that these activities are closely
related to banking and permissible for bank holding
companies. 12 C.F.R. § 225.25(b)(1), (3), (4), (5), (7),
(10), (15), (16) and the Board's Orders dated October
1, 1984; May 23, 1986; July 30, 1987; May 10, 1988;
November 30, 1989; and June 4, 1990.
This Order corrects an Order issued on July 23, 1990.
INSTITUTIONS
REFORM, RECOVERY,
AND
ENFORCEMENT
Recent orders have been issued by the Staff Director of the Division of Banking Supervision and Regulation and
the General Counsel 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.
Bank Holding Company
Bank Shares Incorporated,
Minneapolis, Minnesota
First Citizens BancShares,
Inc.,
Raleigh, North Carolina
Jacob Schmidt Company,
St. Paul, Minnesota
American Bancorporation,
Inc.,
St. Paul, Minnesota
Jacob Schmidt Company,
St. Paul, Minnesota
American Bancorporation,
Inc.,
St. Paul, Minnesota
The Lauritzen Corporation,
Omaha, Nebraska
Acquired
Thrift
Surviving
Bank(s)
Midwest Savings Association,
F.A.,
Minneapolis, Minnesota
(Apache Plaza and
Knollwood Branches)
Heritage Federal Savings and
Loan Association,
Monroe, North Carolina
Marquette Bank
Minneapolis,
N.A.,
Minneapolis,
Minnesota
First Citizens Bank
& Trust
Company,
Raleigh, North
Carolina
American National
Bank and Trust
Company,
St. Paul,
Minnesota
Commercial State
Bank,
St. Paul,
Minnesota
Midwest Savings Association,
F.A.,
Minneapolis, Minnesota
(Midway and Maplewood
Branches)
Midwest Savings Association,
F.A.,
Minneapolis, Minnesota
(Cedar Street Branch)
FirsTier Savings Bank,
F.S.B.,
Omaha, Nebraska
(Hartington Branch)
Farmers and
Merchants State
Bank,
Bloomfield,
Nebraska
Approval
Date
October 5, 1990
October 3, 1990
October 5, 1990
October 5, 1990
October 5, 1990
1066 Federal Reserve Bulletin • December 1990
FIRREA Orders—Continued
Acquired
Thrift
Surviving
Bank(s)
Trust Company
Bank,
Atlanta, Georgia
October 22, 1990
SunTrust Banks, Inc.,
Atlanta, Georgia
Trust Company of Georgia,
Atlanta, Georgia
SunTrust Banks, Inc.,
Atlanta, Georgia
Trust Company of Georgia,
Atlanta, Georgia
Anchor Savings Bank F.S.B.,
Hewlett, New York
(Fulton, DeKalb, and
Douglas County, Georgia
Branches)(13 branches)
Anchor Savings Bank F.S.B.,
Hewlett, New York (Cobb
County, Georgia
Branches)(3 branches)
Anchor Savings Bank F.S.B.,
Hewlett, New York
(Gwinnett County, Georgia
Branch)
October 22, 1990
SunTrust Banks, Inc.,
Atlanta, Georgia
Trust Company of Georgia,
Atlanta, Georgia
Anchor Savings Bank F.S.B.,
Hewlett, New York
(Chatham County, Georgia
Branch)
Trust Company
Bank of Cobb
County, N.A.,
Atlanta, Georgia
Trust Company
Bank of
Gwinnett
County,
Lawrenceville,
Georgia
Trust Company
Bank of
Savannah, N.A.,
Savannah,
Georgia
Bank Holding Company
SunTrust Banks, Inc.,
Atlanta, Georgia
Trust Company of Georgia,
Atlanta, Georgia
APPLICATIONS
APPROVED UNDER BANK HOLDING COMPANY
Approval
Date
October 22, 1990
October 22, 1990
ACT
By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon
request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 3
Applicant(s)
Boyle Bancorp, Inc.,
Danville, Kentucky
FirsTier Financial, Inc.,
Omaha, Nebraska
Bank(s)
Citizens Bank and Trust Company,
Burgin, Kentucky
Guaranty Corporation,
Denver, Colorado
^date^
October 26, 1990
October 9, 1990
Legal Developments
1067
Section 4
Applicant(s)
C&S/Sovran Corporation (formerly
Avantor Financial Corporation),
Atlanta, Georgia
Bank South Corporation,
Atlanta, Georgia
Barnett Banks, Inc.,
Jacksonville, Florida
The Citizens and Southern
Corporation,
Atlanta, Georgia
First Florida Banks, Inc.,
Tampa, Florida
Southeast Banking Corporation,
Miami, Florida
SunTrust Banks, Inc.,
Atlanta, Georgia
Synovus Financial Corporation,
Columbus, Georgia
TB&C Bancshares, Inc.,
Columbus, Georgia
BB&T Financial Corporation,
Wilson, North Carolina
First Union Corporation,
Charlotte, North Carolina
First Wachovia Corporation,
Winston-Salem, North Carolina
NCNB Corporation,
Charlotte, North Carolina
South Carolina National Corporation,
Columbia, South Carolina
Southern National Corporation,
Lumberton, North Carolina
Sovran Financial Corporation,
Norfolk, Virginia
KeyCorp,
Albany, New York
Key Bancshares of New York, Inc.,
Albany, New York
Bank(s)
Effective
date
Southeast Switch, Inc.,
Maitland, Florida
October 22, 1990
American Pioneer Federal Savings
Bank,
Orlando, Florida
October 11, 1990
1068 Federal Reserve Bulletin • December 1990
Section 4—Continued
Applicant(s)
SunTrust Banks, Inc.,
Atlanta, Georgia
APPLICATIONS
SunTrust/Atlanta Interim Savings
Bank,
Atlanta, Georgia
SunTrust/Cobb Interim Savings Bank,
Atlanta, Georgia
SunTrust/Gwinnett Interim Savings
Bank,
Lawrenceville, Georgia
SunTrust/Savannah Interim Savings
Bank,
Savannah, Georgia
APPROVED UNDER BANK MERGER
By the Secretary
Effective
date
Bank(s)
of the
October 22, 1990
ACT
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(s)
Trust Company Bank,
Atlanta, Georgia
APPLICATIONS
By Federal
Bank(s)
SunTrust/Atlanta Interim Savings
Bank,
Atlanta, Georgia
APPROVED UNDER BANK HOLDING COMPANY
Reserve
^ctete^
October 22, 1990
ACT
Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon
request to the Reserve Banks.
Section 3
Applicant(s)
7L Corporation,
Tampa, Florida
Alpine Banks of Colorado,
Glen wood Springs, Colorado
Blue Ridge Bancshares, Inc.,
Kansas City, Missouri
Bank(s)
First Florida Banks, Inc.,
Tampa, Florida
Alpine Bank, Clifton,
Clifton, Colorado
Blue Ridge Bank and Trust
Company,
Kansas City, Missouri
Reserve
Bank
Effective
date
Atlanta
September 28, 1990
Kansas City
October 23, 1990
Kansas City
October 17, 1990
Legal Developments
1069
Section 3—Continued
Applicant(s)
Bruning Bancshares, Inc.,
Bruning, Nebraska
First Bancorp of Kansas,
Wichita, Kansas
First Blanchester Bancshares,
Inc.,
Blanchester, Ohio
First Citizens Financial Corp.,
Charles City, Iowa
First Dakota Financial
Corporation,
Bismarck, North Dakota
First Farmers Financial Corp.,
Converse, Indiana
First Financial Corporation,
Terre Haute, Indiana
Garwin Bancorporation,
Garwin, Iowa
High Plains Bancshares, Inc.,
Muleshoe, Texas
Landmark/Community Bancorp,
Inc.,
Hartford, Connecticut
Marshall & Ilsley Corporation,
Milwaukee, Wisconsin
Monmouth Financial Services,
Inc.,
Minneapolis, Minnesota
National City Bancshares, Inc.,
Evansville, Indiana
New East Bancorp,
Raleigh, North Carolina
Northern Trust Corporation,
Chicago, Illinois
Oklahoma Bancorporation, Inc.,
Clinton, Oklahoma
Lowry Facilities, Inc.,
Clinton, Oklahoma
Old National Bancorp,
Evansville, Indiana
PBC Bancshares, Inc.,
Pelham, Georgia
Pocahontas Bankstock, Inc.,
Pocahontas, Arkansas
Bank(s)
Bruning State Bank,
Bruning, Nebraska
Valley Center Bancshares, Inc.,
Valley Center, Kansas
The First National Bank of
Blanchester,
Blanchester, Ohio
Osage Bank Services, Inc.,
Osage, Iowa
Security State Bank,
Beulah, North Dakota
Union State Bank,
Windfall, Indiana
First Citizens of Paris, Inc.,
Paris, Illinois
Farmers State Bank,
Garwin, Iowa
Muleshoe State Bank,
Muleshoe, Texas
SBT Corp.,
Old Saybrook, Connecticut
Rosendale Bancshares, Inc.,
Rosendale, Wisconsin
Texas Financial Bancorporation,
Inc.,
Minneapolis, Minnesota
Farmers Bancorp of Sturgis,
Inc.,
Sturgis, Kentucky
New East Bank of New Bern,
New Bern, North Carolina
Heritage Merger Company,
Chicago, Illinois
Fiduciary Services, Inc.,
Houston, Texas
Custer County State Bank,
Arapaho, Oklahoma
Farmers Bank & Trust Company,
Henderson, Kentucky
Pelham Banking Company,
Pelham, Georgia
Bank of Pocahontas,
Pocahontas, Arkansas
Reserve
Bank
Effective
date
Kansas City
October 4, 1990
Kansas City
October 16, 1990
Cleveland
October 1, 1990
Chicago
September 28, 1990
Minneapolis
October 16, 1990
Chicago
October 24, 1990
Chicago
October 25, 1990
Chicago
October 16, 1990
Dallas
October 24, 1990
Boston
September 26, 1990
Chicago
October 24, 1990
Chicago
September 28, 1990
St. Louis
September 28, 1990
Richmond
October 10, 1990
Chicago
September 28, 1990
Kansas City
September 28, 1990
St. Louis
September 28, 1990
Atlanta
October 3, 1990
St. Louis
September 25, 1990
1070 Federal Reserve Bulletin • December 1990
Section 3—Continued
Applicant(s)
PrivateBancorp, Inc.,
Chicago, Illinois
Rocky Mountain Bancorporation,
Inc.,
Billings, Montana
State First Financial Corporation,
Texarkana, Arkansas
Texas Financial Bancorporation,
Inc.,
Minneapolis, Minnesota
West Point Bancorp, Inc.,
West Point, Nebraska
WNB Bancshares, Inc.,
Odessa, Texas
Bank(s)
The PrivateBank and Trust
Company,
Chicago, Illinois
Whitehall Bancorporation, Inc.,
Billings, Montana
The Harlem Corporation,
Billings, Montana
Atlanta National Bank,
Atlanta, Texas
First Bancorp, Inc.,
Denton, Texas
First State Bank of Denton,
Denton, Texas
Farmers & Merchants State
Bank,
Wayne, Nebraska
Kermit Financial Corporation,
Kermit, Texas
First National Bank of Kermit,
Kermit, Texas
Reserve
Bank
Effective
date
Chicago
September 28, 1990
Minneapolis
October 12, 1990
St. Louis
October 19, 1990
Dallas
September 28, 1990
Kansas City
September 28, 1990
Dallas
October 10, 1990
Section 4
Applicant(s)
Bourbon Bancshares, Inc.,
Paris, Kentucky
Carlson Bancshares, Inc.,
West Memphis, Arkansas
CS Holding,
Zurich, Switzerland
Credit Suisse,
Zurich, Switzerland
First Financial Bancorp,
Monroe, Ohio
First Western Bancorp, Inc.,
New Castle, Pennsylvania
Norwest Corporation,
Minneapolis, Minnesota
Nonbanking
Activity/Company
Reserve
Bank
Effective
date
Kentucky Bank, F.S.B.,
Georgetown, Kentucky
Southern Life Insurance,
Limited,
West Memphis, Arkansas
Winter Partners Inc.,
New York, New York
Cleveland
October 12, 1990
St. Louis
September 26, 1990
N e w York
October 12, 1990
The Fayette Federal Savings
Bank,
Connersville, Indiana
First Federal of Western
Pennsylvania,
Sharon, Pennsylvania
Gilco Leasing, Inc.,
Omaha, Nebraska
Cleveland
October 17, 1990
Cleveland
September 28, 1990
Minneapolis
October 25, 1990
Legal Developments
1071
Section 4—Continued
Nonbanking
Activity/Company
Applicant(s)
Effective
date
engage in underwriting of credit
life, health and accident
insurance
Chicago
October 23, 1990
First Federal Savings and Loan
Association of Griffin,
Griffin, Georgia
Tri-County Bancorp,
Roachdale, Indiana
The North Salem State
Bancorporation,
North Salem, Indiana
Bright Financial Services, Inc.
Flora, Indiana
Cloverdale Bank Corporation,
Cloverdale, Indiana
United Bank Corporation,
Barnesville, Georgia
APPLICATIONS
Reserve
Bank
Atlanta
September 26, 1990
APPROVED UNDER BANK MERGER
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.
» i•
x/ \
Applicant(s)
r» i / >
>
Bank(s)
Chemical Bank,
New York, New York
North Shore Bank of Commerce,
Duluth, Minnesota
UniSouth Banking Corporation,
Columbus, Mississippi
PENDING CASES INVOLVING
The Greater New York Savings
Bank,
New York, New York
Airport State Bank,
Hermantown, Minnesota
Eastover Bank for Savings,
Jackson, Mississippi
Effective
date
New York
September 28, 1990
Minneapolis
October 11, 1990
St. Louis
October 2, 1990
THE BOARD OF GOVERNORS
This list of pending cases does not include suits
against the Federal Reserve Banks in which the Board
of Governors is not named a party.
Citicorp v. Board of Governors, No. 90-4124 (2d
Circuit, filed October 4,1990). Petition for review of
Board order requiring Citicorp to terminate certain
insurance activities conducted pursuant to Delaware
law by an indirect nonbank subsidiary. Insurance
trade associations, the Delaware Bankers Associa-
Reserve
^
tion, and the State of Delaware have moved to
intervene in the action.
Stanley v. Board of Governors, No. 90-3183 (7th
Circuit, filed October 3, 1990). Petition for review of
Board order imposing civil money penalties on five
former bank holding company directors.
Kuhns v. Board of Governors, No. 90-1398 (D.C.
Cir., filed July 30, 1990). Petition for review of
Board order denying request for attorney's fees
pursuant to Equal Access to Justice Act. Oral argument is scheduled for February 15, 1991.
1072
Federal Reserve Bulletin • December 1990
Laufman v. State of California, et al., No. CIVS-891755 EJM-EM (E.D. California, filed April 2, 1990).
Action to require bank regulatory agencies to examine or bring enforcement action against bank. Dismissed on July 25, 1990.
May v. Board of Governors, No. 90-1316 (D.C. Cir.,
filed July 27, 1990). Appeal of District Court order
dismissing plaintiffs action under Freedom of Information and Privacy Acts. Board's motion for summary affirmance filed October 12, 1990.
Burke v. Board of Governors, No. 90-9509 (10th
Circuit, filed February 27, 1990). Petition for review
of Board orders assessing civil money penalties and
issuing orders of prohibition.
BancTEXAS Group, Inc. v. Board of Governors, No.
CA 3-90-0236-R (N.D. Texas, filed February 2,
1990). Suit for preliminary injunction enjoining the
Board from enforcing a temporary order to cease
and desist requiring injection of capital into plaintiffs subsidiary banks under the Board's source of
strength doctrine. District court granted preliminary
injunction on June 5, 1990, in light of 5th Circuit's
decision in MCorp v. Board of Governors.
Rutledge v. Board of Governors, No. 90-7599 (11th
Cir., filed August 21, 1990). Appeal of district court
grant of summary judgment for defendants in tort
suit challenging Board and Reserve Bank supervisory actions.
Kaimowitz v. Board of Governors, No. 90-3067 (11th
Cir., filed January 23, 1990). Petition for review of
Board order dated December 22, 1989, approving
application by First Union Corporation to acquire
Florida National Banks. Petitioner objects to approval on Community Reinvestment Act grounds.
Babcock and Brown Holdings, Inc. v. Board of Governors, No. 89-70518 (9th Cir., filed November 22,
1989). Petition for review of Board determination
that a company would control a proposed insured
bank for purposes of the Bank Holding Company
Act. Awaiting scheduling of oral argument.
Consumers Union of U.S., Inc. v. Board of Governors, No. 90-5186 (D.C. Cir., filed June 29, 1990).
Appeal of District Court decision upholding amendments to Regulation Z implementing the Home
Equity Loan Consumer Protection Act. Oral argument scheduled for February 20, 1991.
Synovus Financial Corp. v. Board of Governors, No.
89-1394 (D.C. Cir., filed June 21, 1989). Petition for
review of Board order permitting relocation of a bank
holding company's national bank subsidiary from
Alabama to Georgia. Oral argument was held on
October 11, 1990. On October 15, the court ordered
the Office of the Comptroller of the Currency to
submit a brief regarding an issue in the case.
MCorp v. Board of Governors, No. 89-2816 (5th Cir.,
filed May 2, pending and future enforcement actions
against a bank holding company now in bankruptcy.
On May 15, 1990, the Fifth Circuit vacated the
district court's order enjoining the Board from proceeding with enforcement actions based on section
23A of the Federal Reserve Act, but upheld the
district court's order enjoining such actions based
on the Board's source-of-strength doctrine. The
Board's petition for rehearing was denied on
August 5, 1990. On August 29, the Fifth Circuit
denied the plaintiffs motion for a stay pending
petition for certiorari.
Independent Insurance Agents of America v. Board of
Governors, No. 89-4030 (2d Cir., filed March 9,
1989). Petition for review of Board order ruling that
the non-banking restrictions of section 4 of the Bank
Holding Company Act apply only to non-bank subsidiaries of bank holding companies. The Board's
order was upheld on November 29, 1989. Petition
for certiorari was denied on October 1, 1990.
MCorp v. Board of Governors, No. CA3-88-2693
(N.D. Tex., filed October 10, 1988). Application for
injuction to set aside temporary cease and desist
orders. Stayed pending outcome of MCorp v. Board
of Governors in Fifth Circuit.
White v. Board of Governors, No. CU-S-88-623-RDF
(D. Nev., filed July 29, 1988). Age discrimination
complaint. Board's motion to dismiss or for summary judgment pending.
FINAL ENFORCEMENT ORDERS ISSUED BY THE
BOARD OF GOVERNORS
C.M. Newton, Jr. and C.M. Newton, III
Officers and Directors of
First Bank and Trust Company
Dawson, Texas
The Federal Reserve Board announced on October 26,
1990, the issuance of Orders of Assessment of Civil
Money Penalty against C.M. Newton, Jr. and C.M.
Newton, III, officers and directors of the First Bank
and Trust Company, Dawson, Texas.
1
Financial and Business Statistics
N O T E . The following tables may have some
discontinuities in historical data for some series
beginning with the December 1989 issue: 1.12,
1.33, 1.44, 1.52, 1.57-1.60, 2.10, 2.12, 2.13, 3.10,
3.11, 3.15-3.20, 3.22-3.25, 3.27, 3.28, and 4.30.
For a more detailed explanation of the changes,
see the announcement on page 16 of the January
CONTENTS
COMMERCIAL BANKING
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
AND CREDIT
AGGREGATES
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock, liquid assets, and debt measures
A15 Bank debits and deposit turnover
A16 Loans and securities—All commercial banks
BULLETIN.
INSTITUTIONS
ALL Major nondeposit funds
A18 Assets and liabilities, last-Wednesday-of-month
series
WEEKLY REPORTING COMMERCIAL
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
BANKS
A10 Condition and Federal Reserve note statements
A l l Maturity distribution of loan and security
holdings
MONETARY
1990
FEDERAL
A28
A29
A30
A30
FINANCE
Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types
and ownership
A31 U.S. government securities
dealers—Transactions
A32 U.S. government securities dealers—Positions
and financing
A3 3 Federal and federally sponsored credit
agencies—Debt outstanding
2 Federal Reserve Bulletin • December 1990
SECURITIES MARKETS AND
CORPORATE FINANCE
International
A34 New security issues—State and local
governments and corporations
A35 Open-end investment companies—Net sales
and asset position
A35 Corporate profits and their distribution
A35 Total nonfarm business expenditures on new
plant and equipment
A36 Domestic finance companies—Assets and
liabilities and business credit
SUMMARY
REAL
STATISTICS
A55
A56
A56
A56
U.S. international transactions—Summary
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
A57 Foreign branches of U.S. banks—Balance
sheet data
A59 Selected U.S. liabilities to foreign official
institutions
REPORTED BY BANKS
IN THE UNITED STATES
ESTATE
A37 Mortgage markets
A38 Mortgage debt outstanding
CONSUMER INSTALLMENT
Statistics
CREDIT
A39 Total outstanding and net change
A40 Terms
A59
A60
A62
A63
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A63 Banks' own claims on unaffiliated foreigners
A64 Claims on foreign countries—Combined
domestic offices and foreign branches
REPORTED BY NONBANKING
BUSINESS
ENTERPRISES IN THE UNITED STATES
FLOW OF FUNDS
A65 Liabilities to unaffiliated foreigners
A66 Claims on unaffiliated foreigners
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
SECURITIES HOLDINGS AND
Domestic
INTEREST AND EXCHANGE
SELECTED
Nonfinancial
Statistics
MEASURES
A46 Nonfinancial business activity—Selected
measures
A47 Labor force, employment, and unemployment
A48 Output, capacity, and capacity utilization
A49 Industrial production—Indexes and gross value
A51 Housing and construction
A52 Consumer and producer prices
A53 Gross national product and income
A54 Personal income and saving
TRANSACTIONS
A67 Foreign transactions in securities
A68 Marketable U.S. Treasury bonds and
notes—Foreign transactions
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
SPECIAL
All
TABLES
Terms of lending at commercial banks,
May 31, 1990, and August 31, 1990
A82 Assets and liabilities of U.S. branches and
agencies of foreign banks, June 30, 1990
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
1990
1989
1990
Monetary and credit aggregates
Ql
Q2
Q3
May
June
July
Aug.'
Sept.
2.4
2.5
-3.9
8.5
-1.4
-.9
-1.0
7.0
-1.4
-1.5
2.0
8.8
-9.8
-11.3
-4.1
3.5
-1.0
2.8
8.3
7.6
-8.2
-10.1
-5.8
6.4
8.6
8.6
5.2
13.1
6.7
5.9
12.9
14.6
3.5
2.8'
.8
,8r
6.8r
4.3
3.1
1.5
n.a.
7.1
-2.8
-2.3r
-2.3'
6.9
-10.3'
2.6
-7.3'
7.2
12.3
11.3
2.7
9.5
9.1
7.8
-1.1
.2
4.7
-2.5
-28.6
1.3
5.7
-3.3
-24.7
Money market mutual funds
20 General purpose and broker-dealer
21 Institution-only
29.1
3.3
19.8
10.2
Debt components4
22 Federal
23 Nonfederal
10.2
6.4
6.8
5.9
Q4
institutions2
1
2
3
4
Reserves of depository
Total
Required
Nonborrowed
Monetary base3
5
6
7
8
9
Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt
Nontrgnsaction
10 InM2 y
11 In M3 only 6
12
13
14
15
16
17
18
19
5.1
5.0
7.2
4.0
5.1
7.1
2.0
3.1
7.3
4.8
6.4
2.9'
i.r
6.1
5.2'
6.0
2.8'
1.2'
4.8'
6.6'
-.3
2.C
1.2'
2.8'
7.3'
10.4
6.6
4.5
3.1
8.7
9.7
5.7
.9
n.a.
n.a.
2.7
-5.1
-2.2'
-2.3'
1.8'
-5.3'
2.7'
-2.0'
5.3
-4.1
4.5
-19.2
5.1
10.6
12.0
-i.r
4.0
9.4
15.5
-.8
-1.9
9.9
20.6'
5.8'
9.3
9.5
18.7'
2.4
4.3'
8.8
18.9
5.4'
.6
12.0
6.8
-9.9
4.9
4.5
9.5
-13.9
.5
2.6
-8.0
-30.3'
-2.4
-10.5
-13.3
-31.6
-2.7
-16.7
-16.0
-40.3
-3.8
-15.1
-20.9
-29.5'
-.5
-12.6
-15.7
-36.5
-1.6
-5.5
-3.9
-28.4
-6.5
.9
-7.5
-26.3
-.7
11.7
12.8
21.9
-19.9
5.6
5.6
.0
11.9
17.9
32.1
56.2
22.6
22.1
9.5
5.9
14.1
5.0
7.2
4.5
14.3
4.2'
13.6'
5.4
19.1
5.5
-1.1'
components
Time and savings deposits
Commercial banks
Savings
MMDAs
Small-denomination time'
Large-denomination time ,9
Thrift institutions
Savings
MMDAs
Small-denomination time
Large-denomination time8
7.7
-16.6
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 regulatory changes in reserve requirements. (See also table 1.20.)
3. Seasonally adjusted, break-adjusted monetary base consists of (1) seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally
adjusted currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all those weekly reporters whose vault cash exceeds their required
reserves) the seasonally adjusted, break adjusted difference between current vault
cash and the amount applied to satisfy current reserve requirements.
4. Composition of the money stock measures and debt is as follows:
Ml: (l) 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 depository institutions and overnight Eurodollars issued to
U.S. residents by foreign branches of U.S. banks worldwide, money market
deposit accounts (MMDAs), savings and small-denomination time deposits
(time deposits—including retail RPs—in amounts of less than $100,000), and
balances in both taxable and tax-exempt general purpose and broker-dealer
money market mutual funds. Excludes individual retirement accounts (IRA)
and Keogh balances at depository institutions and money market funds. Also
excludes all balances held by U.S. commercial banks, money market funds
(general purpose and broker-dealer), foreign governments and commercial
banks, and the U.S. government.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by all depository institutions, term Eurodollars held by U.S. residents at foreign branches of U.S. banks worldwide and at all
n.a.
n.a.
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. Data are derived from the Federal
Reserve Board's flow of funds accounts. Data on debt of domestic nonfinancial
sectors are monthly averages, derived by averaging adjacent month-end levels.
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.
6. Sum of large time deposits, term RPs, term Eurodollars of U.S. residents,
and 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. 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.
8. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
9. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
officii institutions.
A4
Domestic Financial Statistics • December 1990
1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week ending
1990
1990
July
Aug.
Sept.
Aug. 15
Aug. 22
Aug. 29
Sept. 5
Sept. 12
Sept. 19
Sept. 26
279,684
280,961
285,966
280,153
281,890
280,338
284,951
287,432
287,090
283,761
230,592
1,055
231,366
2,139
233,704
2,797
232,406
423
230,140
4,416
230,240
2,706
233,529
3,090
232,933
4,443
233,687
3,427
234,214
1,015
6,437
387
0
6,408
551
0
6,377
930
0
6,414
238
0
6,414
714
0
6,398
894
0
6,377
1,095
0
6,377
1,236
0
6,377
1,394
0
6,377
318
0
96
275
389
674
39,780
11,065
8,518
20,093
318
433
134
566
39,045
11,064
8,518
20,145
240
419
5
752
40,742
11,064
8,518
20,198
160
425
70
407
39,610
11,064
8,518
20,139
1,148
438
6
120
38,495
11,064
8,518
20,150
55
445
10
846
38,745
11,064
8,518
20,160
347
415
5
153
39,942
11,065
8,518
20,171
29
398
4
1,477
40,535
11,064
8,518
20,185
552
422
5
393
40,833
11,064
8,518
20,199
73
440
9
320
40,9%
11,063
8,518
20,213
268,968
568
270,536
544
272,891
525
270,622
546
270,835
545
270,754
536
273,093
534
274,085
528
272,940
519
271,913
519
5,408
243
5,415
265
6,358
258
5,288
242
5,501
355
5,219
239
5,368
280
4,690
252
7,570
247
6,666
208
2,022
243
1,873
236
2,017
279
1,968
212
2,132
266
1,955
278
1,953
229
2,026
245
1,911
287
2,203
295
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit
2
3
4
5
6
7
8
9
10
11
12
13
14
U.S. government securities1' 2
Bought outright-system account
Held under repurchase agreements . . .
Federal agency obligations
Bought outright
Held under repurchase agreements . . .
Acceptances
Loans to depository institutions2
Adjustment credit
Seasonal credit
Extended credit
Float
Other Federal Reserve assets
Gold stock
Special drawing rights certificate account .
Treasury currency outstanding
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19
Service-related balances and
adjustments
20
Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks3
9,176
9,219
9,905
9,044
8,990
9,027
10,339
10,544
9,594
9,310
32,731
32,600
33,513
31,952
32,998
32,074
32,907
34,831
33,803
32,442
End-of-month figures
Wednesday figures
1990
1990
July
Aug.
Sept.
Aug. 15
Aug. 22
Aug. 29
Sept. 5
Sept. 12
Sept. 19
Sept. 26
279,364
284,445
284,364
279,970
284,227
281,237
292,464
284,054
292,300
285,241
232,313
0
233,498
2,936
234,373
0
230,477
2,960
230,092
693
230,314
3,206
233,338
7,063
231,517
3,052
234,030
4,505
233,855
2,720
6,414
0
0
6,377
1,186
0
6,377
0
0
6,414
1,667
0
6,414
186
0
6,377
823
0
6,377
1,793
0
6,377
1,424
0
6,377
1,701
0
6,377
564
0
97
407
437
643
39,053
11,065
8,518
20,118
50
412
3
-97
40,081
11,065
8,518
20,171
77
423
5
1,832
41,277
11,063
8,518
20,227
819
426
4
-857
38,060
11,064
8,518
20,139
7,257
447
7
747
38,384
11,064
8,518
20,150
71
448
13
1,199
38,787
11,065
8,518
20,160
2,152
399
3
941
40,398
11,065
8,518
20,171
30
404
5
560
40,686
11,064
8,518
20,185
3,587
435
5
794
40,867
11,065
8,518
20,199
49
441
11
87
41,138
11,063
8,518
20,213
268,411
549
272,690
534
271,905
527
271,035
546
270,693
537
271,684
530
274,319
533
273,820
519
272,516
518
271,849
521
6,369
279
4,453
337
7,638
360
5,659
246
5,438
217
6,130
246
8,238
228
4,726
201
16,758
180
5,402
198
2,000
247
1,953
219
1,942
374
1,968
276
2,132
233
1,955
276
1,953
241
2,026
235
1,911
308
2,204
367
SUPPLYING RESERVE FUNDS
23 Reserve Bank credit
24
25
26
27
28
29
30
31
32
33
34
35
36
U.S. government securities1, 2
Bought outright-system account
Held under repurchase agreements . . .
Federal agency obligations
Bought outright
Held under repurchase agreements . . .
Acceptances
Loans to depository institutions
Adjustment credit
Seasonal credit
Extended credit
Float
Other Federal Reserve assets
Gold stock
Special drawing rights certificate account .
Treasury currency outstanding
ABSORBING RESERVE FUNDS
37 Currency in circulation
38 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
39
Treasury
40
Foreign
41
Service-related balances and
adjustments
42
Other
43 Other Federal Reserve liabilities and
capital
44 Reserve balances with Federal
Reserve Banks3
9,723
10,504
9,606
8,710
8,657
8,759
10,479
9,424
9,241
9,127
31,484
33,509
31,820
31,251
36,052
31,400
36,227
32,871
30,650
35,366
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. Beginning with the May 1990 Bulletin, this table has been revised to
correspond with the H.4.1 statistical release.
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 averages9
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks2
Total vault cash3
Applied vault cash4
Surplus vault cash5
Total reserves6
Required reserves
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks
1987
1988
1989
Dec.
Reserve classification
Dec.
Dec.
Mar.
Apr.
May
June
July
Aug.
Sept.
37,691
26,675
24,449
2,226
62,141
61,094
1,046
777
93
483
37,837
28,204
25,909
2,295
63,746
62,699
1,047
1,716
130
1,244
35,436
29,812
27,374
2,439
62,810
61,888
922
265
84
20
33,407
29,581
27,251
2,330
60,658
59,797
861
2,124
78
1,950
35,409
29,281
27,103
2,178
62,512
61,615
897
1,628
122
1,403
32,771
29,812
27,461
2,351
60,232
59,269
962
1,335
244
875
33,878
29,632
27,318
2,314
61,197
60,423
774
881
311
346
32,946
30,457
27,996
2,460
60,943
60,081
862
757
389
280
32,448'
30,843
28,280
2,563
60,728r
59,860
868'
927
430
127
33,301
30,622
28,147
2,475
61,448
60,541
907
624
418
6
1990
Biweekly averages of daily figures for weeks ending
1990
May 30
11
12
13
14
15
16
17
18
19
20
Reserve balances with Reserve Banks
Total vault cash3
Applied vault cash .
Surplus vault cash
Total reserves6
Required reserves
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks
June 13
June 27
July 11
July 25
Aug. 8
Aug. 22
Sept. 5r
Sept. 19
Oct. 3
31,269
30,852
28,268
2,584
59,537
58,526
1,011
1,723
278
1,098
34,385
28,986
26,803
2,184
61,188
60,709
479
1,291
282
559
33,390
30,097
27,676
2,421
61,066
60,046
1,020
566
329
183
33,958
30,264
27,885
2,380
61,842
60,944
898
581
359
182
32,390
30,549
28,094
2,455
60,484
59,609
875
832
396
298
32,389
30,597
27,974
2,623
60,363
59,599
764
908
429
419
32,463
31,379
28,815
2,565
61,277
60,367
910
1,124
432
38
32,477
30,229
27,720
2,509
60,197
59,304
893
638
430
8
34,316
30,291
27,976
2,315
62,292
61,546
746
705
410
5
32,385
31,222
28,558
2,664
60,943
59,824
1,119
516
424
9
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
and includes other off-balance sheet "as-of" adjustments.
3. Total "lagged" vault cash held by those depository institutions currently
subject to reserve requirements. 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. All vault cash held during the lagged computation period by "bound"
institutions (i.e., those whose required reserves exceed their vault cash) plus the
amount of vault cash applied during the maintenance period by "nonbound"
institutions (i.e., those whose vault cash exceeds their required reserves) to
satisfy current reserve requirements.
5. Total vault cash (line 2) less applied vault cash (line 3).
6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash
(line 3).
7. Total reserves (line 5) less required reserves (line 6).
8. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
9. Data are prorated monthly averages of biweekly averages.
A6
Domestic Financial Statistics • December 1990
1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS
Large Banks1
Averages of daily figures, in millions of dollars
1990 week ending Monday 2
Maturity and source
July 16
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
July 23
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
Sept. 3
Sept. 10
88,646
19,161
80,664
21,137
79,671
19,311
86,516
19,270
85,883
19,567
89,773
19,298
84,057
19,697
87,664
19,572
95,172
17,839
42,193
17,858
40,122
19,176
37,516
18,779
39,342
17,596
41,080
16,873
39,250
16,866
39,306
16,386
36,237
17,206
38,524
17,452
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
13,311
19,735
13,067
21,516
13,481
21,734
17,406
24,262
17,771
25,272
18,476
24,233
17,044
25,459
18,639
24,590
16,370
22,600
33,347
13,572
33,760
13,854
32,907
14,737
33,487
14,266
30,243
14,512
32,148
13,522
32,102
14,649
33,258
14,612
33,378
13,833
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 3
45,724
12,696
46,841
13,278
46,791
12,576
52,042
16,229
61,601
16,660
54,448
17,025
48,340
15,970
51,861
16,310
52,564
17,741
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. Beginning with the August Bulletin data appearing are the most current
available. To obtain data from May 1, 1989, through April 16, 1990, contact the
Division of Applications Development and Statistical Services, Financial Statement Reports Section, (202) 452-3349.
3. 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
On
10/25/90
Effective
date
7
2/24/89
2/24/89
2/24/89
2/24/89
2/24/89
2/24/89
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco . . .
7
After 30 days of borrowing 3
First 30 days of borrowing
Previous
rate
6
2/24/89
2/24/89
2/24/89
2/24/89
2/27/89
2/24/89
6
On
10/25/90
Effective
date
7
2/24/89
2/24/89
2/24/89
2/24/89
2/24/89
2/24/89
Vi
Vi
2/24/89
2/24/89
2/24/89
2/24/89
2/27/89
2/24/89
7
On
10/25/90
6
Effective
date
Previous
rate
Effective date
8.60
Previous
rate
10/18/90
10/18/90
10/18/90
10/18/90
10/18/90
10/18/90
8.70
10/4/90
10/4/90
10/4/90
10/4/90
10/4/90
10/4/90
Vi
6Vi
8.60
10/18/90
10/18/90
10/18/90
10/18/90
10/18/90
10/18/90
10/4/90
10/4/90
10/4/90
10/4/90
10/4/90
10/4/90
8.70
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
21
Oct.
8
10
1980—Feb. 15
19
May 29
30
June 13
16
Range (or
level)—
All F.R.
Banks
6
F.R.
Bank
of
N.Y.
6
6-6V2 6 Vi
6V2 6V2
6V2-7 7
1
7
7-7!*
IV*
71/4
73/4
8
8-8W
m
9V2
10
10-10W
low
10W-11
11
11-12
12
12-13
13
12-13
12
11-12
11
7V4
73/4
8
iVi
8 Vi
9 Vi
9V2
10
10
10V4
11
11
12
12
Vi
13
13
13
12
11
11
Effective
10
10
11
11
12
12-13
12
13
13-14
14
13-14
13
14
14
13
13
12
10-11
5
8
?
6
4
1981-—May
—May
Nov.
Dec.
-July
1982--July
7,0 . .
7,3 ,
?
3
16
77
30
Oct. 1?
13
Nov. ??
76
Dec. 14
15
17 . .
Aug.
F.R.
Bank
of
N.Y.
10
1980-—July 78
—July
79
Sept. 76
Nov. 17
Dec. 5
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 Yi percent above the rate on adjustment
credit. The program was reestablished for 1986 and 1987 but was not renewed for
1988.
2. Extended credit is available to depository institutions, when similar assistance is not reasonably available from other sources, when exceptional circumstances or practices involve only a particular institution or when an institution is
experiencing difficulties adjusting to changing market conditions over a longer
period of time.
3. For extended-credit loans outstanding more than 30 days, a flexible rate
somewhat above rates on market sources of funds ordinarily will be charged, but
Range (or
level)—
All F.R.
Banks
12
im-12
1m
11-nw
n
\m
10-10W
10
9W-10
9'/2
9 - 9 Vi
9
8W-9
i
8Y
8VS-9
11VS
UVi
11
11
10V2
Effective date
1984—Apr.
9
13
Nov. 21
26
Dec. 24
1985—May 20
24
1986—Mar.
7
10
Apr. 21
July 11
Aug. 21
22
1987—Sept.
10
10
m
m
4
11
1988—Aug.
9
11
9
9
9
1989—Feb. 24
27
8</>
In effect Oct. 25, 1990
SVz
Range (or
level)—
All F.R.
Banks
8W-9
9
9
9
8
8
SV2-9 m
8 Vi
m
7 Vi
lYi
IVi
7-7 Vi
7
1
7
6Y1-I 6V1
6
6
5Vl-6 5Vi
5 Vi 5Vi
7W8
5V4-6
6
6
6
6-6V2 Wi
6 Vi
m
evi-i 1
1
1
7
1
in no case will the rate charged be less than the basic discount rate plus 50 basis
points. The flexible rate is reestablished on the first business day of each
two-week reserve maintenance period. At the discretion of the Federal Reserve
Bank, the time period for which the basic discount rate is applied may be
shortened.
4. For earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics, 1914-1941, and 1941-1970; Annual Statistical
Digest, 1970-1979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than four weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980 through May 7,
1980. There was no surcharge until Nov. 17,1980, when a 2 percent surcharge was
adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and
to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective
Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981 the
formula for applying the surcharge was changed from a calendar quarter to a
moving 13-week period. The surcharge was eliminated on Nov. 17, 1981.
A8
Domestic Financial Statistics • December 1990
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-$40.4 million
More than $40.4 million . . .
12/19/89
12/19/89
Nonpersonal time deposits5
By original maturity
Less than 1 Vi years
1 Vi years or more
10/6/83
10/6/83
Eurocurrency liabilities
All types
1. Reserve requirements in effect on Dec. 31, 1989. Required reserves must be
held in the form of deposits with Federal Reserve Banks or vault cash. Nonmember institutions 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 or 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 change in transaction accounts held by
all depository institutions, determined as of June 30 each year. Effective Dec. 19,
1989 for institutions reporting quarterly and Dec. 26, 1989 for institutions
reporting weekly, the amount was decreased from $41.5 million to $40.4 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
1990
Type of transaction
1987
1988
1989
Feb.
Mar.
Apr.
May
June
July
Aug.
U . S . TREASURY SECURITIES
Outright transactions (excluding matched
transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
18,983
6,051
239,740
9,029
8,223
587
241,876
2,200
14,284
12,818
231,211
12,730
108
3,384
18,113
400
543
0
21,551
0
5,796
0
17,286
0
3,365
0
22,894
0
1,732
0
16,279
0
287
0
16,159
0
4,264
68
21,912
0
5
6
7
8
9
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
3,659
300
21,504
-20,388
70
2,176
0
23,854
-24,588
0
327
0
28,848
-25,783
500
0
0
2,845
-5,418
0
100
0
1,876
0
0
0
0
993
-4,304
0
0
0
4,387
-2,771
0
50
0
1,314
0
0
0
0
1,321
-3,577
0
0
0
3,235
-4,550
0
10
11
12
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
10,231
452
-17,975
18,938
5,485
800
-17,720
22,515
1,436
490
-25,534
23,250
0
0
-1,713
4,743
100
0
-1,876
0
100
0
-739
4,081
0
0
-3,607
2,521
0
0
-1,314
0
0
0
-1,234
3,577
0
0
-2,188
4,200
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
2,441
0
-3,529
950
1,579
175
-5,946
1,797
287
29
-2,231
1,934
0
0
-451
450
0
0
0
0
0
0
-254
223
0
0
-530
0
0
0
0
0
0
0
-87
0
0
0
-697
0
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
1,858
0
0
500
1,398
0
-188
275
284
0
-1,086
600
0
0
-681
226
0
0
0
0
0
0
0
0
0
0
-250
250
0
0
0
0
0
0
0
0
0
0
-350
350
37,170
6,803
9,099
18,863
1,562
2,200
16,617
13,337
13,230
108
3,384
400
743
0
0
5,896
0
0
3,365
0
0
1,782
0
0
287
0
0
4,264
68
0
Matched transactions
25 Gross sales
26 Gross purchases
950,923
950,935
1,168,484
1,168,142
1,323,480
1,326,542
116,220
120,637
99,104
97,128
97,970
98,643
121,596
121,218
107,896
110,042
95,144
95,787
113,647
110,635
Repurchase agreements2
27 Gross purchases
28 Gross sales
314,621
324,666
152,613
151,497
129,518
132,688
0
0
8,050
6,627
6,409
7,832
3,959
3,959
11,242
11,242
13,106
11,447
26,700
23,764
11,234
15,872
-10,055
741
190
5,146
2,987
3,928
2,590
4,121
0
0
276
0
0
587
0
0
442
0
0
0
0
0
0
0
0
78
0
0
0
0
0
0
Repurchase agreements2
33 Gross purchases
34 Gross sales
80,353
81,350
57,259
56,471
38,835
40,411
0
0
1,966
1,457
2,595
3,104
2,314
2,314
3,221
3,221
4,697
4,137
7,130
5,944
35 Net change in federal agency obligations
-1,274
198
-2,018
0
509
-587
0
0
527
1,149
36 Total net change in System Open Market
Account
9,961
16,070
-12,073
741
699
4,559
2,987
3,928
3,117
5,270
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
1. Sales, redemptions, and negative figures reduce holdings of the System Open
Market Account; all other figures increase such holdings. Details may not add to
totals because of rounding.
0
0
33
0
0
37
2. In July 1984 the Open Market Trading Desk discontinued accepting bankers
acceptances in repurchase agreements,
A10
Domestic Financial Statistics • December 1990
1.18 FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements'
Millions of dollars
Wednesday
1990
Account
Aug. 29
Sept. 5
End of month
1990
Sept. 12
Sept. 19
July
Sept. 26
Aug.
Sept.
Consolidated condition statement
ASSETS
11,065
8,518
495
11,065
8,518
480
11,064
8,518
493
11,065
8,518
508
11,063
8,518
523
11,064
8,518
476
11,065
8,518
491
11,063
8,518
533
531
0
0
0
6,377
823
2,554
6,377
1,793
438
0
0
0
6,377
1,424
4,027
0
0
0
6,377
1,701
501
0
0
0
6,377
564
942
0
0
0
6,414
0
465
0
0
0
6,377
1,186
505
0
0
0
6,377
107,769
91,582
30,963
230,314
3,206
233,520
110,794
91,582
30,963
233,338
7,063
240,402
108,972
91,582
30,963
231,517
3,052
234,569
111,485
91,582
30,963
234,030
4,505
238,535
111,310
91,582
30,963
233,855
2,720
236,575
109,768
91,782
30,763
232,313
0
232,313
110,953
91,582
30,963
233,498
2,936
236,434
111,828
91,582
30,963
234,373
241,251
251,125
242,808
250,640
244,017
239,668
244,461
241,255
5,896
831
9,409
836
6,253
838
6,017
840
5,209
844
9,103
831
5,726
836
8,358
844
32,695
5,274
34,060
5,629
34,115
5,676
34,186
6,558
34,292
5,984
32,561
6,577
34,059
5,230
34,454
6,006
306,025
321,121
309,765
318,333
310,451
308,798
310,386
311,031
252,549
255,160
254,647
253,344
252,681
249,319
253,544
252,738
33,334
6,130
246
276
38,559
8,238
228
241
35,185
4,726
201
235
33,108
16,758
180
308
37,766
5,402
198
367
34,651
6,369
279
247
35,592
4,453
337
219
33,834
7,638
360
374
39,985
47,266
40,346
50,354
43,733
41,546
40,600
42,206
4,732
3,559
8,216
4,258
5,348
4,198
5,395
4,043
4,909
3,925
8,210
3,554
5,738
4,288
6,481
4,021
300,824
314,901
304,539
313,135
305,248
302,629
304,169
305,446
2,396
2,243
562
2,394
2,243
1,584
2,394
2,243
589
2,395
2,243
560
2,398
2,243
561
2,359
2,243
1,566
2,399
2,243
1,579
2,399
2,243
943
33 Total liabilities and capital accounts
306,025
321,121
309,765
318,333
310,451
308,798
310,386
311,031
34 MEMO: Marketable U.S. Treasury securities held in
custody for foreign and international accounts
233,637
235,236
237,565
234,483
233,886
228,317
236,408
234,926
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4
To depository institutions
5
Other
6 Acceptances held under repurchase agreements
Federal agency obligations
7
Bought outright
8
Held under repurchase agreements
U.S. Treasury securities
Bought outright
9
Bills
10
Notes
11
Bonds
12
Total bought outright2
13
Held under repurchase agreements
14 Total U.S. Treasury securities
15 Total loans and securities
16 Items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies5
19 All other4
20 Total assets
0
0
0
0
0
234,373
LIABILITIES
21 Federal Reserve notes
Deposits
22
To depository institutions
23
U.S. Treasury—General account
24
Foreign—Official accounts
25
Other
26 Total deposits
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
LESS: Held by bank
36
Federal Reserve notes, net
37
Collateral held against notes net:
38
Gold certificate account
Special drawing rights certificate account
39
Other eligible assets
40
41
U.S. Treasury and agency securities
293,783
41,234
252,549
293,907
38,747
255,160
294,709
40,063
254,647
295,430
42,086
253,344
296,303
43,621
252,681
290,791
41,472
249,319
293,807
40,263
253,544
296,914
44,176
252,738
11,065
8,518
0
232,966
11,065
8,518
0
235,578
11,064
8,518
0
235,064
11,065
8,518
0
233,761
11,063
8,518
0
233,101
11,064
8,518
0
229,737
11,065
8,518
0
233,961
11,063
8,518
0
233,157
42 Total collateral
252,549
255,160
254,647
253,344
252,681
249,319
253,544
252,738
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.
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 Holding
Millions of dollars
Wednesday
1990
Type and maturity groupings
End of month
1990
Aug. 29
Sept. 5
Sept. 12
Sept. 19
Sept. 26
July 31
Aug. 31
Sept. 28
Within 15 days
16 days to 90 days
91 days to 1 year
531
432
100
0
2,554
2,277
277
0
438
197
241
0
4,027
3,%5
62
0
501
399
103
0
942
723
218
0
465
221
243
0
505
284
221
5 Acceptances—Total
Within 15 days
6
7
16 days to 90 days
91 days to 1 year
8
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
233,520
14,178
54,753
67,422
59,460
13,170
24,536
240,402
14,244
56,537
72,214
59,700
13,170
24,536
234,569
9,5%
55,272
72,295
59,700
13,170
24,536
238,535
15,185
53,600
72,344
59,700
13,170
24,536
236,575
12,881
56,418
69,869
59,700
13,170
24,536
232,313
9,872
56,294
69,706
58,239
11,801
26,402
233,498
2,820
60,563
72,709
59,700
13,170
24,536
234,373
7,099
60,033
69,835
59,700
13,170
24,536
7,200
1,133
497
1,616
2,655
1,110
188
8,170
1,823
758
1,620
2,670
1,110
188
7,801
1,457
725
1,668
2,642
1,120
188
8,078
1,929
530
1,668
2,642
1,120
188
6,941
764
525
1,709
2,634
1,120
188
6,414
115
712
1,468
2,820
1,110
188
6,377
310
497
1,616
2,655
1,110
188
6,377
200
525
1,709
2,634
1,120
188
2
3
4
9 U.S. Treasury securities—Total
10 Within 15 days'
11
16 days to 90 days
12 91 days to 1 year
13 Over 1 year to 5 years
14 Over 5 years to 10 years
15 Over 10 years
16 Federal agency obligations—Total
17 Within 15 days'
18
16 days to 90 days
19 91 days to 1 year
20
Over 1 year to 5 years
21
Over 5 years to 10 years
22
Over 10 years
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 because of rounding,
A12
1.20
Domestic Financial Statistics • December 1990
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1
Billions of dollars, averages of daily figures
1990
Item
1986
Dec.
1987
Dec.
1988
Dec.
1989
Dec.
Feb.
2
3
4
5
58.02
4
Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves
Monetary base6
57.20
57.50
56.65
241.43
58.59
6 Total reserves7
Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves8
Monetary base9
May
June
July
Aug.
Sept.
59.32
59.75
60.08
57.82
58.30
57.55
258.06
60.59
60.03
60.22
60.30
60.28
59.78
59.73
58.88
60.12
59.55
275.24
59.77
59.79
59.11
284.95
58.77
59.30
59.23
289.71
58.17
60.12
59.44
291.82
58.65
60.05
59.38
293.54
58.45
59.32
58.82
294.40
58.85
59.20
58.96
296.28
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS
7
8
9
10
Apr.
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 2
1 Total reserves3
Mar.
58.56
58.82
58.84
58.95
58.46
58.88
297.86 301.12'
59.45
59.46
59.17
304.78
Not seasonally adjusted
59.46
60.07
62.22
61.67
59.20
59.23
61.05
58.74
59.61
59.47
59.21r
59.81
58.64
58.94
58.09
245.17
59.30
59.78
59.03
262.00
60.50
61.75
61.17
279.54
61.40
61.42
60.75
289.45
57.75
58.29
58.21
286.50
57.11
59.06
58.37
288.86
59.42
60.82
60.15
293.35
57.41
58.28
57.78
293.52
58.73
59.07
58.84
297.37
58.71
58.99
58.61
299.90
58.29
58.41r
58.34
301.46'
59.19
59.19
58.90
303.56
59.56
62.14
63.75
62.81
60.62
60.66
62.51
60.23
61.20
60.94
60.73
61.45
58.73
59.04
58.19
247.62
1.37
.83
61.36
61.85
61.09
266.06
1.05
.78
62.03
63.27
62.70
283.00
1.05
1.72
62.54
62.56
61.89
292.55
.92
.27
59.17
59.71
59.63
290.02
.99
1.45
58.53
60.49
59.80
292.38
.86
2.12
60.88
62.29
61.62
296.87
.90
1.63
58.90
59.77
59.27
297.03
.96
1.33
60.32
60.66
60.42
300.99
.77
.88
N O T ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 10
11 Total reserves"
12
13
14
15
16
17
Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves
Monetary base
Excess reserves13
Borrowings from the Federal Reserve
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 reflect adjustments for discontinuities or "breaks" associated with
regulatory changes in reserve requirements.
3. Seasonally adjusted, break adjusted total reserves equal seasonally adjusted,
break-adjusted required reserves (line 4) plus excess reserves (line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally
adjusted, break-adjusted total reserves (line 1) less total borrowings of depository
institutions from the Federal Reserve (line 17).
5. 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.
6. The seasonally adjusted, break-adjusted monetary base consists of (1)
seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally
adjusted currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all those weekly reporters whose vault cash exceeds their required
reserves, the seasonally adjusted, break-adjusted difference between current vault
cash and the amount applied to satisfy current reserve requirements.
7. Break-adjusted total reserves equal break-adjusted required reserves (line 9)
plus excess reserves (line 16).
60.19
59.80'
60.47
59.93
60.08
59.86
303.39 304.99'
.87
.86
.76
.93
60.82
60.83
60.54
307.21
.91
.62
8. To adjust required reserves for discontinuities because of regulatory changes
in reserve requirements, a multiplicative procedure is used to estimate what
required reserves would have been in past periods had current reserve requirements been in effect. Break-adjusted required reserves includes required reserves
against transactions deposits and nonpersonal time and savings deposits (but not
reservable nondeposit liabilities).
9. The break-adjusted monetary base equals (1) break-adjusted total reserves
(line 6), plus (2) the (unadjusted) currency component of the money stock, plus (3)
(for all quarterly reporters on the "Report of Transaction Accounts, Other
Deposits and Vault Cash" and for all those weekly reporters whose vault cash
exceeds their required reserves) the break-adjusted difference between current
vault cash and the amount applied to satisfy current reserve requirements.
10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated
with changes in reserve requirements.
11. Reserve balances with Federal Reserve Banks plus vault cash used to
satisfy reserve requirements.
12. The monetary base, not break-adjusted and not seasonally adjusted,
consists of (1) total reserves (line 11), plus (2) required clearing balances and
adjustments to compensate for float at Federal Reserve Banks, plus (3) the
currency component of the money stock, plus (4) (for all quarterly reporters on
the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all
those weekly reporters whose vault cash exceeds their required reserves) the
difference between current vault cash and the amount applied to satisfy current
reserve requirements. After the introduction of CRR, currency and vault cash
figures are measured over the computation periods ending on Mondays.
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).
Monetary and Credit Aggregates
A13
1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES 1
Billions of dollars, averages of daily figures
1990
J
1986
Dec.
1987
Dec.
1988
Dec.
1989
Dec.
June
July
Aug.
Sept.
809.2
3,284.0'
4,073.3'
4,918.4'
10,170.1'
816.2'
3,302.C
4,088.6'
4,931.3
10,244.0
822.8
3,317.7
4,091.7
n.a.
n.a.
238.3'
8.0
278.0
291.9'
241.5
8.3
279.9
293.1
Seasonally adjusted
724.7
2,814.2
3,494.5
4,135.4'
7,636.2
1
2
3
4
5
Ml
M2
M3
L
Debt
6
7
8
9
Ml components
Currency
Travelers checks 4
Demand deposits5
Other checkable deposits6
Nontransactions
10 In M2
11 In M3 only8
750.4
2,913.2
3,678.7
4,338.9
8,345.1
787.5
3,072.4
3,918.3
4,676. V
9,107.6
794.8
3,221.6
4,044.3
4,881.2'
9,788.9
180.6
6.5
302.1
235.5
196.7
7.0
287.0
259.7
211.8
7.5
287.0
281.3
221.9
7.4
279.7
285.7
2,089.6
680.3
2,162.8
765.5
2,284.9
845.9
809.4
3,278.6'
4,069.1'
4,906.8'
10,108.7'
233.4
7.7
274.5
293.8
235.4
7.7
274.8
291.3
2,426.8
822.6
2,469.2'
790.6'
2,474.8'
789.3'
2,485.7
786.6'
2,495.0
774.0
components
12
13
14
15
Time and Savings accounts
Commercial banks
Savings deposits
Money market deposit accounts
Small time deposits 9
Large time deposits 10, 11
155.8
377.7
366.3
289.8
178.3
356.4
388.1
326.9
192.0
350.2
447.5
368.2
188.5
351.5
528.6
401.5
195.0
368.2
559.3
397.9'
195.7'
370.9
568.1
399.7'
195.8'
374.6
571.3'
396.4'
196.6
376.0
575.8
391.8
16
17
18
19
Thrift institutions
Savings deposits
Money market deposit accounts
Small time deposits 9
Large time deposits 10
214.3
193.3
489.9
150.0
236.6
167.4
529.7
161.9
235.9
150.1
583.5
172.9
220.5
132.2
613.7
156.8
220.8
133.0
587.8
134.9
220.7
131.6
580.1
130.8
220.4'
131.0
578.2
127.7'
219.2
131.1
574.6
124.9
208.7
83.8
222.0
89.0
240.9
87.1
312.4
102.3
321.9
107.3
325.1
108.9
333.8
114.0
340.1
116.1
1,806.1
5,830.1
1,957.9
6,387.2
2,114.2
6,993.4
2,266.7
7,522.2'
2,370.9
7,737.8'
2,397.8'
7,772.3'
2,436.0
7,808.0
n.a.
n.a.
812.2
3,289.6'
4,072.3'
4,906.6'
10,124.6'
814.0'
3,302.0'
4,088.7'
4,925.8
10,190.7
818.7
3,310.2
4,087.8
n.a.
n.a.
239.2
8.9
276.7
289.2'
240.8
8.8
278.1
291.1
Money market mutual funds
20 General purpose and broker-dealer
21 Institution-only
Debt components
22 Federal debt
23 Nonfederal debt
Not seasonally adjusted
740.5
2,826.5
3,508.8
4,151.4'
7,619.0
24
25
26
27
28
Ml
M2
M3
L
Debt
29
30
31
32
Ml components
Currency3
Travelers checks 4
Demand deposits5
Other checkable deposits6
Nontransactions
33 In M2
34 In M3 only8
components
766.4
2,925.6
3,692.7
4,355.2
8,329.1
183.0
6.0
314.0
237.5
199.3
6.5
298.6
262.0
2,086.0
682.3
2,159.2
767.0
804.5
3,085.2
3,932.5
4,692.9'
9,093.2
812.1
3,234.5
4,058.3
4,898.9'
9,774.3
214.8
6.9
298.9
283.8
225.3
6.9
291.6
288.4
2,280.7'
847.3
810.0
3,275.7'
4,062.8'
4,898.5'
10,065.0'
234.8
8.1
274.8
292.3
237.1
8.6
277.0
289.4
2,422.4
823.8
2,465.8'
787.0'
2,477.5'
782.7'
2,487.9
786.7'
2,491.6
777.6
35
36
37
38
Time and Savings accounts
Commercial banks
Savings deposits
Money market deposit accounts
Small time deposits9
Large time deposits10' 11
154.4
379.8
366.1
289.2
176.9
359.0
387.3
325.8
190.6
353.2
446.0
366.9
187.2
355.0
526.4
399.8
196.1
365.8
560.4
397.4'
197.3
368.1
569.6'
397.5'
196.3
372.9
572.3'
397.0'
196.0
374.4
576.2
393.1
39
40
41
42
Thrift institutions
Savings deposits
Money market deposit accounts
Small time deposits 9
Large time deposits 10
212.7
192.9
489.8
150.7
234.9
167.5
529.1
162.9
234.2
150.6
582.4
174.2
219.0
132.8
612.3
158.3
222.3
132.5
586.8
133.6'
223.0
131.2
581.6
129.5'
220.9'
131.1'
578.6
127.1'
218.9
131.1
573.6
125.1
Money market mutual funds
43 General purpose and broker-dealer
44 Institution-only
208.0
84.4
221.5
89.6
240.5
87.6
312.2
102.9
319.8
106.1
322.3
108.1
332.8
113.2
339.1
113.2
Repurchase agreements and Eurodollars
45 Overnight
46 Term
82.3
164.3
83.2
197.1
83.3
227.7
77.4
178.0
82.1'
163.3'
84.2'
161.7'
83 . C
C
165.3'
82.1
161.8
1,803.9
5,815.1
1,955.6
6,373.5
2,111.8
6,981.4
2,264.5
7,509.8
2,359.0
7,706.0'
2,382.4'
7,742.2'
Debt components
47 Federal debt
48 Nonfederal debt
For notes see following page.
2,418.2
7,772.5
n.a.
n.a.
A14
Domestic Financial Statistics • December 1990
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 Money 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 depository institutions and overnight Eurodollars issued to U.S.
residents by foreign branches of U.S. banks worldwide, money market deposit
accounts (MMDAs), savings and small-denomination time deposits (time deposits—including retail RPs—in amounts of less than $100,000), and balances in both
taxable and tax-exempt general purpose and broker-dealer money market mutual
funds. Excludes individual retirement accounts (IRA) and Keogh balances at
depository institutions and money market funds. Also excludes all balances held
by U.S. commercial banks, money market funds (general purpose and brokerdealer), 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 all depository 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. Data are derived from 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, term Eurodollars of U.S. residents,
and money market fund balances (institution-only), less a consolidation adjustment that represents the estimated amount of overnight RPs and Eurodollars held
by institution-only money market funds.
9. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All individual retirement accounts (IRA) and
Keogh accounts at commercial banks and thrifts are subtracted from small time
deposits.
10. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
11. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
Monetary and Credit Aggregates
1.22
A15
B A N K DEBITS A N D DEPOSIT TURNOVER1
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
1990
Bank group, or type of customer
Feb.
Mar.
Apr.
May
June
July
Seasonally adjusted
DEBITS TO
3
Demand deposits
1 All insured banks
Major New York City banks
2
3 Other banks
4 ATS-NOW accounts4
5 Savings deposits
217,116.2
104,4%.3
112,619.8
2,402.7
526.5
226,888.4
107,547.3
119,341.2
2,757.7
579.2
272,793.1
121,894.2
150,898.9
3,501.8
636.6
299,450.2
132,031.4
167,418.8
4,115.7
587.3
285,111.5
132,470.3
152,641.2
4,075.7
617.6
274,403.6
124,988.2
149,415.4
3,993.3
583.1
273,186.2
123,314.6
149,871.6
4,165.6
601.1
301,578.2
131,042.7
170,535.5
4,004.2
566.6
301,589.9
130,590.7
170,999.2
4,163.7
608.8
612.1
2,670.6
357.0
13.8
3.1
641.2
2,903.5
376.8
14.7
3.1
781.0
3,401.6
481.5
18.3
3.5
851.4
3,677.3
530.1
20.6
3.1
813.3
3,760.2
484.0
20.2
3.2
780.8
3,551.5
472.5
19.7
3.0
791.9
3,590.9
482.5
20.5
3.2
866.2
3,742.8
544.6
19.5
2.9
865.5
3,838.3
543.8
20.5
3.1
DEPOSIT TURNOVER
6
7
8
9
10
Demand deposits3
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts4
Savings deposits
Not seasonally adjusted
DEBITS TO
Demand deposits3
11 All insured banks
12 Major New York City banks
13 Other banks
14 ATS-NOW accounts4
15 MMDA
16 Savings deposits
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
271,957.3
122,241.8
149,715.5
3,4%.5
2,790.6
635.8
270,852.7
119,305.2
151,547.5
3,721.3
2,551.2
518.7
291,868.6
137,029.5
154,839.2
4,030.4
2,714.9
594.2
276,077.5
125,750.6
150,326.9
4,285.8
2,848.4
646.8
282,747.7
125,532.4
157,215.3
4,066.2
3,016.4
592.6
302,181.4
130,332.7
171,848.6
4,098.2
2,992.1
567.8
302,826.4
130,100.1
172,726.3
4,108.9
3,033.8
640.3
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
779.0
3,415.4
477.8
18.3
8.3
3.5
791.8
3,314.9
495.2
18.7
7.2
2.8
850.4
3,836.2
503.6
20.0
7.6
3.1
784.4
3,564.6
474.7
20.5
7.9
3.4
834.7
3,7%.3
514.3
20.3
8.4
3.1
866.5
3,797.6
546.6
20.1
8.2
2.9
864.8
3,777.5
547.1
20.4
8.3
3.3
DEPOSIT TURNOVER
17
18
19
20
21
22
Demand deposits3
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts4
MMDA6
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
Domestic Financial Statistics • December 1990
1.23 LOANS AND SECURITIES
All Commercial Banks1
Billions of dollars; averages of Wednesday figures
1989
1990
Category
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Seasonally adjusted
1 Total loans and securities
2
2 U.S. government securities
3 Other securities
4 Total loans and leases 2
5
Commercial and industrial . . . . .
6
Bankers acceptances held . . .
7
Other commercial and
industrial
8
U.S. addressees4
9
Non-U.S. addressees4
10 Real estate
11
Individual
12 Security
13 Nonbank financial
institutions
14 Agricultural
15
State and political
subdivisions
16 Foreign banks
17
Foreign official institutions
18 Lease financing receivables . . . .
19 All other loans
2,570.5
2,585.8
2,588.8
2,594.4
2,614.3
2,635.6
2,646.7
2,653.8
2,669.4
2,684.7
2,707.8
2,708.5
390.9
181.4
1,998.2
642.0
7.9
396.0
179.9
2,009.9
645.0
7.6
396.1
180.8
2,011.9
641.6
7.4
404.7
180.4
2,009.3
637.9
7.3
414.5
180.5
2,019.4
638.8
7.6
422.3
180.1
2,033.2
644.4
7.6
427.3
180.0
2,039.4
649.0
7.5
430.6
178.3
2,045.0
648.6
7.6
438.5
177.9
2,053.0
651.6
7.9
440.6
177.8
2,066.4
651.7
7.6
441.3
179.2
2,087.3
653.1
7.3
447.1
179.4
2,082.0
651.6
7.7
634.1
629.9
4.2
746.7
372.4
40.7
637.4
632.4
5.0
754.0
374.4
40.9
634.2
628.8
5.4
761.1
375.8
38.8
630.6
623.1
7.6
765.9
378.3
39.3
631.2
625.4
5.8
774.7
379.5
40.0
636.8
630.6
6.2
781.8
379.9
37.1
641.5
635.5
6.0
786.9
378.8
36.1
641.0
636.4
4.5
794.6
379.8
34.8
643.7
638.8
4.9
800.1
378.4
35.3
644.2
641.6
2.6
808.0
378.3
38.8
645.7'
643.2
2.5
811.9
380.1
46.0
643.9
641.1
2.8
814.7
381.1
43.1
33.2
30.5
33.9
30.5
33.0
30.7
32.5
30.9
32.9
30.8
33.8
30.6
33.9
30.4
33.9
30.0
34.4
29.5
34.8
29.3
35.7
29.2
36.2
29.1
41.3
9.1
3.8
31.9
46.6
40.8
8.3
3.7
31.9
46.4
40.1
8.9
3.6
31.8
46.5
38.6
8.1
3.2
32.1
42.5
38.9
7.8
3.1
32.2
40.6
38.4
8.4
3.0
32.6
43.2
38.2
8.8
3.2
32.3
41.8
37.9
8.7
3.2
32.5
40.9
37.4
7.4
3.2
32.3
43.4'
36.6
7.0
3.2
32.6
46.1
36.1'
8.0
3.2
32.7
51.5
35.4
7.9
3.2
32.8
47.0
Not seasonally adjusted
20 Total loans and securities
2
21 U.S. government securities
22 Other securities
23 Total loans and leases 2
24
Commercial and industrial . . . . .
25
Bankers acceptances held 3 ...
26
Other commercial and
industrial
27
U.S. addressees4
28
Non-U.S. addressees4
29
Real estate
30
Individual
31
Security
32
Nonbank financial
institutions
33
Agricultural
34
State and political
subdivisions
35
Foreign banks
36
Foreign official institutions
37
Lease financing receivables . . . .
All other loans
38
2,570.8
2,587.9
2,596.8
2,600.1
2,616.7
2,629.9
2,647.0
2,653.4
2,669.5
2,678.9
2,701.4
2,707.1
388.2
182.3
2,000.2
639.4
8.1
396.1
181.2
2,010.6
642.2
7.7
397.2
181.8
2,017.9
641.6
7.5
406.4
180.9
2,012.8
636.4
7.4
419.0
180.3
2,017.3
639.5
7.7
423.8
179.7
2,026.4
646.0
7.4
427.2
179.4
2,040.4
653.3
7.3
429.6
177.7
2,046.1
652.7
7.5
435.6
177.2
2,056.7
654.0
7.8
438.1
176.4
2,064.4
652.1
7.3
442.1
179.3
2,080.0
650.6
7.4
446.1
179.6
2,081.4
647.7
7.8
631.3
625.7
5.6
748.0
373.5
39.7
634.5
629.1
5.4
755.7
375.8
39.7
634.0
628.8
5.2
761.9
380.3
37.9
629.1
624.1
4.9
766.0
381.8
37.8
631.8
627.0
4.8
772.1
378.7
39.5
638.6
633.9
4.7
779.1
376.6
38.1
645.9
641.3
4.6
784.9
376.0
38.5
645.2
640.6
4.6
793.5
377.3
35.3
646.2
641.8
4.4
800.0
376.7
37.4
644.8
640.3
4.5
808.7
376.7
38.8
643.1'
638.7
4.5
813.6
380.3
45.3
639.9
635.3
4.6
816.9
383.0
42.1
32.8
31.2
34.2
30.8
34.1
30.6
33.2
30.4
32.5
29.9
33.0
29.5
33.7
29.5
33.9
29.7
34.7
29.8'
35.0
30.0
35.5
30.0
35.7
30.0
41.2
9.4
3.8
31.8
49.3
40.6
8.5
3.7
31.9
47.5
39.7
8.7
3.6
31.9
47.7
39.5
8.2
3.2
32.5
43.8
39.3
7.8
3.1
32.4
42.6
38.6
7.8
3.0
32.5
42.1
38.2
8.4
3.2
32.4
42.4
37.8
8.7
3.2
32.5
41.6
37.2
7.6
3.2
32.2
43.9
36.2
7.1
3.2
32.3
44.2'
35.8
7.9
3.2
32.5
45.4
35.3
8.1
3.2
32.6
46.6
1. These data also appear in the Board's G.7 (407) release. For address, see
inside front cover.
2. Excludes loans to commercial banks in the United States.
3. Includes nonfinancial commercial paper held.
4. United States includes the 50 states and the District of Columbia.
Commercial Banking Institutions
A17
1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS 1
Monthly averages, billions of dollars
1990
1989
Source
Oct.
Seasonally adjusted
1 Total nondeposit funds
2 Net balances due to related foreign offices3
3 Borrowings from other than commercial banks
in United States4
4
Domestically chartered banks
Foreign-related banks
5
Not seasonally adjusted
6 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 States4
Domestically chartered banks
11
Federal funds and security RP
12
borrowings
Other6
N
14 Foreign-related banks6
Nov.
Dec.
Jan.
Feb.
Mar.
Apr/
May
June
July'
Aug/
Sept.
254.7
10.2
256.5
8.6
257.3
7.4
258.1
10.9
267.6
14.7
271.4
17.4'
267.6
16.6
269.2'
24.5'
270.7'
14.8'
282.2
16.8
283.0
16.7
281.0
19.2
244.5
196.5
48.0
247.9
198.3
49.6
249.9
200.4
49.4
247.2
196.9
50.4
252.9
201.4
51.5
254.0r
198.4'
55.6
250.9
192.9
58.0
244.8'
187.8'
57.0
255.9'
197.8'
58.1
265.4
203.8
61.7
266.3
203.7
62.5
261.8
200.1
61.7
249.9
9.6
-15.0
24.6
255.4
9.7
-15.5
25.2
250.7
9.7
-19.2
28.9
254.6
10.5
-14.5
25.0
270.8
14.3
-11.1
25.4
277.2
16.2
-11.5
27.7
270.4
14.4
-10.6
25.0
277.8'
26.3
-1.4
27.7
275.6'
15.4
-6.3
21.7
277.6
14.7
-6.1
20.8
282.1
17.0
-3.6
20.6
277.3
20.0
-4.5
24.4
240.3
193.5
245.8
198.5
241.0
194.0
244.1
192.9
256.4
203.3
261.C
204.3
256.0
197.0
251.4'
193.6'
260.1'
199.5'
262.9
200.8
265.2
203.2
257.4
197.0
190.4
3.0
46.8
196.1
2.4
47.2
191.5
2.5
47.0
190.3
2.7
51.2
199.6
3.7
53.1
199.8r
4.5
56.8
193.3
3.7
59.0
190.2'
3.4
57.9
196.4'
3.2
60.6
197.9
2.9
62.1
199.6
3.6
61.9
192.9
4.0
60.4
461.4
462.6
464.0
464.4
464.3
462.7
462.7
460.4
460.6
460.3
457.3
460.2
455.1
455.1
454.7
455.2
452.7
452.2
454.0
451.8
450.9
451.5
445.5
446.9
21.5
20.6
20.4
14.7
21.1
19.6
20.2
23.2
17.8
22.0
19.2
16.7
21.2
20.0
18.6
25.2
20.4
20.9
14.8
15.2
33.2
23.5
28.2
31.0
MEMO
15
16
17
18
Gross large time deposits
Seasonally adjusted
Not seasonally adjusted
U.S. Treasury demand balances at commercial
banks8
Seasonally adjusted
Not seasonally adjusted
1. Commercial banks are those in the 50 states and the District of Columbia with
national or state charters plus agencies and branches of foreign banks, New York
investment companies majority owned by foreign banks, and Edge Act corporations owned by domestically chartered and foreign banks.
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
Domestic Financial Statistics • December 1990
1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Last-Wednesday-of-Month Series1
Billions of dollars
1989
1990
Account
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
2,774.7
551.0
376.5
174.5
26.8
2,196.9
185.4
2,011.6
641.6
758.3
376.5
235.2
2,780.1
550.5
375.1
175.5
22.8
2,206.8
187.0
2,019.8
643.2
762.8
382.3
231.5
2,796.0
563.9
389.8
174.1
31.8
2,200.4
187.4
2,013.0
636.4
767.6
381.7
227.3
2,809.2
571.2
398.0
173.2
30.2
2,207.8
187.5
2,020.3
642.4
774.0
378.6
225.3
2,821.2
576.8
405.9
170.8
26.0
2,218.5
191.6
2,026.9
646.2
781.6
375.5
223.6
2,838.3
582.5
412.6
169.9
23.9
2,231.9
190.6
2,041.3
653.3
786.7
377.5
223.8
2,845.9
585.9
416.9
169.0
21.4
2,238.7
192.8
2,045.9
650.9
796.7
377.3
220.9
2,870.9
587.7
419.9
167.8
23.7
2,259.6
202.7
2,056.9
654.1
801.3
378.5
222.9
2,876.4
587.5
420.1
167.4
27.2
2,261.6
199.9
2,061.7
648.7
810.2
377.7
225.0
2,895.8
595.8
427.1
168.7
29.2
2,270.7
198.4
2,072.4
646.3
813.3
382.2
230.6
2,885.6
600.4
432.2
168.2
21.3
2,263.9
188.8
2,075.1
646.7
817.4
383.9
227.1
231.5
38.7
30.7
84.4
255.7
42.8
31.6
99.1
218.9
24.6
28.0
89.9
224.9
29.5
27.8
91.6
212.9
32.0
27.7
80.0
211.6
31.6
28.5
80.0
239.9
27.8
29.9
100.6
222.9
32.0
28.9
86.1
214.1
30.1
28.7
79.5
211.0
30.3
30.2
77.4
217.6
33.9
29.2
80.9
28.5
49.2
32.3
49.9
29.6
46.8
30.8
45.2
27.4
45.8
26.3
45.2
32.0
49.7
27.6
48.3
27.4
48.4
27.5
45.6
27.2
46.4
ALL COMMERCIAL BANKING
INSTITUTIONS 2
1 Loans and securities
2
Investment securities
i
U.S. government securities
4
Other
5
Trading account assets
6 Total loans
7
Interbank loans
8
Loans excluding interbank
y
Commercial and industrial
10
Real estate
11
Individual
12
All other
13 Total cash assets
14 Reserves with Federal Reserve Banks.
15 Cash in vault
16 Cash items in process of collection . . .
17
Demand balances at U.S. depository
institutions
18 Other cash assets
19 Other assets
203.3
209.9
218.1
212.9
209.1
206.0
199.5
211.1
207.1
216.3
216.9
20 Total assets/total liabilities and capital
3,209.5
3,245.8
3,233.0
3,247.0
3,243.2
3,255.9
3,285.4
3,304.9
3,297.5
3,323.1
3,320.1
21
'22
23
24
25
26
27
2,225.7
600.8
535.7
1,089.2
543.9
229.5
210.4
2,270.0
642.0
538.2
1,089.7
531.0
233.5
211.3
2,247.1
612.2
540.8
1,094.2
552.8
221.8
211.4
2,262.4
616.6
546.3
1,099.5
542.2
229.3
213.2
2,251.3
594.3
551.8
1,105.3
545.4
230.8
215.7
2,257.3
601.0
548.7
1,107.5
564.7
218.0
215.8
2,293.1
618.4
554.4
1,120.3
548.2
227.8
216.2
2,280.6
599.6
556.3
1,124.7
578.7
227.2
218.4
2,289.7
591.5
561.3
1,136.8
564.4
224.3
219.1
2,295.2
590.5
565.7
1,139.0
576.2
231.7
220.0
2,298.1
596.3
563.5
1,138.3
564.7
236.8
220.5
396.2
391.0
414.7
421.2
423.8
427.8
430.0
433.8
438.9
444.3
442.9
181.6
182.3
180.9
180.2
179.0
178.6
177.2
177.6
175.9
180.8
178.9
2,534.1
524.6
363.9
160.7
26.8
1,982.7
147.3
1,835.5
516.7
728.6
376.5
213.7
2,542.4
524.4
363.8
160.5
22.8
1,995.2
150.3
1,844.9
517.7
733.0
382.3
211.8
2,557.9
536.2
376.6
159.6
31.8
1,989.9
150.0
1,839.9
513.8
735.9
381.7
208.5
2,566.3
543.1
384.4
158.7
30.2
1,993.0
148.5
1,844.6
518.3
741.1
378.6
206.5
2,570.5
547.2
391.2
156.0
26.0
1,997.3
148.3
1,849.0
519.4
747.8
375.5
206.3
2,581.8
551.5
397.6
154.0
23.9
2,006.4
149.1
1,857.3
523.4
751.8
377.5
204.6
2,585.1
557.5
404.0
153.5
21.4
2,006.2
144.4
1,861.7
520.4
761.2
377.3
202.8
2,602.9
557.3
405.5
151.9
23.7
2,021.9
153.6
1,868.3
519.2
765.3
378.5
205.3
2,610.3
556.8
405.5
151.4
27.2
2,026.3
151.6
1,874.7
516.9
773.5
377.7
206.7
2,627.6
565.5
413.0
152.5
29.2
2,032.9
151.3
1,881.6
513.4
776.1
382.2
209.9
2,616.0
568.7
416.9
151.8
21.3
2,026.0
142.4
1,883.6
513.3
780.2
383.9
206.1
205.5
37.9
30.7
82.5
230.5
41.7
31.5
97.7
195.7
22.7
28.0
88.5
199.9
27.5
27.8
90.2
187.3
29.8
27.7
78.5
186.8
29.8
28.5
78.7
210.7
26.6
29.8
99.2
194.8
30.8
28.8
84.1
186.5
28.8
28.7
78.1
184.2
28.1
30.2
75.8
190.4
32.2
29.2
78.9
26.6
27.9
30.4
29.2
27.6
28.9
28.7
25.7
25.6
25.7
24.6
25.2
30.0
25.1
25.9
25.2
25.6
25.3
25.1
25.0
25.2
25.0
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
MEMO
28 U.S. government securities (including
trading account)
29 Other securities (including trading
account)
DOMESTICALLY CHARTERED
COMMERCIAL BANKS 3
30 Loans and securities
31
Investment securities
32
U.S. government securities
33
Other
34
Trading account assets
Total loans
35
36
Interbank loans
3/
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
48 Other assets
136.0
140.7
143.6
140.2
136.4
133.8
136.3
141.8
138.4
144.3
149.1
49 Total assets/liabilities and capital
2,875.7
2,913.6
2,897.2
2,906.5
2,894.2
2,902.4
2,932.0
2,939.6
2,935.3
2,956.1
2,955.5
50
51
52
53
54
55
56
2,143.3
591.2
532.9
1,019.2
405.2
120.6
206.6
2,186.8
632.1
535.4
1,019.3
398.4
120.9
207.4
2,164.5
601.9
537.9
1,024.7
405.3
119.9
207.5
2,179.9
606.3
543.4
1,030.2
394.2
123.1
209.3
2,169.4
584.5
548.8
1,036.1
393.1
119.9
211.8
2,174.6
591.2
545.7
1,037.6
405.4
110.5
212.0
2,210.6
608.3
551.4
1,050.9
391.7
117.3
212.3
2,197.8
589.0
553.3
1,055.4
409.9
117.2
214.6
2,207.7
581.1
558.3
1,068.2
395.6
116.8
215.3
2,213.3
579.9
562.7
1,070.7
403.5
123.2
216.1
2,218.1
585.1
560.4
1,072.5
395.0
125.8
216.7
49.2
679.4
50.0
683.0
51.1
684.8
51.4
689.7
52.0
695.8
53.1
698.7
54.0
707.2
55.0
710.3
56.1
717.4
57.4
718.8
58.1
722.1
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
1990
Account
Aug. 1
Aug. 8
Sept. 12
Sept. 19
119,362
107,130
103,510
124,321
1,337,493' 1,319,434' 1,309,415' 1,331,928
182,470
181,098
182,880
184,764
19,683
17,478
17,153
18,954
162,787
163,621
165,726
165,810
80,394'
80,581'
81,93y
81,552
108,191
1,312,489
183,701
17,974
165,727
81,554
107,117
110,532
1,318,394
185,481
19,012
166,470
82,123
1,293,877
177,095
10,619
166,476
82,339
18,500
18,408
18,429
18,136
39,227'
39,992'
40,340'
40,244
24,478
24,827
25,018
25,878
61,849
62,141
62,322'
61,807
772
981
946
775
61,078
61,160
61,376
61,032
32,121
32,057
32,032
31,959
3,667
3,686
3,699
3,707
28,454
28,371
28,333
28,252
28,957
29,103
29,345
29,072
10,245'
9,755'
10,708'
10,383
98,368
83,717
75,566
92,303
68,717
55,767
51,126
64,830
23,528
22,373
19,439
20,322
6,123
5,578
5,001
7,150
1,023,492' 1,021,613' 1,017,077' 1,021,631
9%,650'
994,702'
989,997'
994,478
322,059'
319,956'
317,633'
317,908
1,71c
1,623'
1,720
1,579'
320,349'
318,332'
316,054'
316,188
318,938'
316,917'
314,662'
314,676
1,411
1,416
1,392
1,512
380,654'
380,500'
379,583'
379,716
30,930'
31,092'
31,259'
31,290
349,724'
349,408'
348,324'
348,425
173,675'
174,271'
174,581'
173,343
52,317
51,748
51,512
52,514
23,071
23,499
23,996
23,928
4,921
4,907
4,158
4,420
24,325
23,342
23,358
24,166
14,234
15,434
14,262
16,600
6,171'
6,0%'
6,078'
6,084
22,561'
22,530'
22,456'
22,423
1,591
1,404
1,449
1,639
23,388'
22,763'
22,442'
24,252
26,842
26,911
27,080
27,153
4,432'
4,450'
4,459'
4,426
34,500'
34,442'
34,534
34,679'
984,560'
982,722'
977,939'
982,671
133,642'
131,427'
133,241'
137,934
1,590,497' 1,557,991' 1,546,166' 1,594,183
244,615'
213,508'
213,279'
241,414
195,532'
172,251'
171,101'
191,403
6,081
5,956
5,404
5,895
2,608
1,261
1,440
1,687
24,921'
18,604
18,840
24,515
6,231
6,363
6,202
6,691
1,375
857
809
1,402
7,868
8,216
9,482
9,820
79,805
78,324
77,478
83,215
758,425
753,907
752,688
755,061
721,384'
716,756'
715,226'
718,135
29,304
29,359
29,676
29,244
887
884
888
745
6,375'
6,455'
6,438'
6,483
475
452
459
454
310,720'
311,995'
299,682'
309,703
785
6,837
0
2,102
14,864
21,735
22,462'
12,527
295,071'
283,422'
277,219'
295,074
92,244'
95,185'
97,754'
99,560
1,485,809' 1,452,920' 1,440,882' 1,488,954
104,688'
105,072'
105,284'
105,230
17,768
40,470
25,935
61,688
684
61,004
31,967
3,727
28,240
29,037
10,016
81,445
56,520
19,630
5,295
1,014,457
987,562
317,253
1,622
315,631
314,219
1,412
380,732
31,410
349,322
173,391
49,629
21,414
4,264
23,951
13,962
6,120
22,322
1,412
22,740
26,895
4,429
34,390
975,639
135,575
1,556,255
221,494
179,575
5,539
2,050
19,506
6,210
932
7,680
80,870
753,471
716,544
29,253
749
6,478
446
299,940
0
17,215
282,725
94,818
1,450,592
17,458
40,866
26,022
61,943
971
60,972
31,980
3,742
28,238
28,992
9,933
83,064
56,873
19,647
6,544
1,016,755
989,907
318,443
1,736
316,707
315,083
1,624
381,025
31,565
349,461
173,684
49,198
21,340
4,418
23,439
14,801
6,123
22,265
1,330
23,039
26,848
4,442
34,341
977,972
137,013
1,562,524
220,741
175,283
6,901
3,508
19,612
5,768
1,129
8,540
78,941
750,036
714,014
28,497
764
6,310
451
309,422
3,405
30,462
275,556
97,901
1,457,041
17,024
40,962
26,151
61,770
1,039
60,731
32,037
3,740
28,296
28,694
9,272
70,611
49,423
15,564
5,624
1,013,657
986,713
316,891
1,622
315,269
313,768
1,501
221,918
174,022
7,356
1,593
20,342
6,600
1,273
10,733
76,989
748,410
712,501
28,510
776
6,177
445
289,510
0
26,492
263,018
100,139
1,436,966
105,662
105,483
105,233
Total loans and leases (gross) and investments adjusted . 1,277,129' 1,274,397' 1,284,636' 1,279,059' 1,273,43c 1,282,130
1,024,616'
Total loans and leases (gross) adjusted
1,030,072' 1,026,064' 1,017,521' 1,025,175
214,461
213,908
213,799
212,761'
212,279
Time deposits in amounts of $100,000 or more
211,160
18,394
19,416
17,858
17,455
17,481'
U.S. Treasury securities maturing in one year or less
16,762
285'
282'
283'
286'
2%'
Loans sold outright to affiliates—total
289
137
140
Commercial and industrial
138
135
144
140
145'
145'
Other
146'
151'
152'
149
286,787
287,356
291,492
Nontransaction savings deposits (including MMDAs)
287,758
287,387
290,541
1,273,374
1,017,968
211,022
16,340
291
141
150
288,784
1,278,965
1,021,607
209,193
16,430
300
149
150
286,394
1,262,212
1,014,075
207,061
14,478
288
151
137
285,305
1 Cash and balances due from depository institutions
123,886
106,361
2 Total loans, leases, and securities, net
1,319,467' 1,314,107'
3 U.S. Treasury and government agency
181,389
178,830
4 Trading account
19,705
16,508
3 Investment account
161,683
162,322
Mortgage-backed securities
6
80,001'
80,837'
All other maturing in
7
One year or less
19,816
18,706
8
Over one through five years
37,338'
38,012'
Over five years
9
24,528
24,767
10 Other securities
63,030
61,991
11 Trading account
1,813
708
12 Investment account
61,216
61,283
13
States and political subdivisions, by maturity
32,138
32,155
14
One year or less
3,616
3,632
15
Over one year
28,522
28,524
Other bonds, corporate stocks, and securities
16
29,079
29,128
17 Other trading account assets
8,094'
9,377'
18 Federal funds sold3
87,589
85,450
19 To commercial banks
56,821
59,363
20 To nonbank brokers and dealers in securities
22,540
22,973
21
Toothers
5,686
5,656
22 Other loans and leases, gross
1,018,304' 1,017,351'
23 Other loans, gross
991,510'
990,548'
24
Commercial and industrial
320,610'
320,098'
25
Bankers acceptances and commercial paper
1,558'
1,624'
26
All other
319,052'
318,474'
27
317,549'
317,038'
U.S. addressees
28
Non-U.S. addressees
1,503
1,436
29
Real estate loans
378,988'
379,542'
Revolving, home equity
30
30,650'
30,758'
31
All other
348,337'
348,784'
32
To individuals for personal expenditures
173,229'
173,325'
33
To depository and financial institutions
49,841
49,446
34
21,915
Commercial banks in the United States
21,781
35
Banks in foreign countries
3,957
3,650
36
Nonbank depository and other financial institutions ..
23,969
24,015
37
14,848
For purchasing and carrying securities
15,139
38
To finance agricultural production
6,132'
6,150'
22,662'
22,635'
39
To states and political subdivisions
40
To foreign governments and official institutions
1,480
1,409
41
All other
23,719'
22,804'
26,794
42 Lease financing receivables
26,802
4,411'
43 LESS: Unearned income
4,422'
44
Loan and lease reserve4
34,529'
34,471'
979,365'
45 Other loans and leases, net
978,458'
46 All other assets
130,501'
129,466'
47 Total assets
1,573,855' 1,549,934'
48 Demand deposits
242,848'
215,563'
49
190,303'
175,614'
Individuals, partnerships, and corporations
50
States and political subdivisions
7,393
5,610
2,414
1,392
51
U.S. government
52 Depository institutions in the United States
25,325
18,683
6,650
4,970'
53 Banks in foreign countries
54
Foreign governments and official institutions
961
681
55
Certified and officers' checks
9,801
8,614
80,364
80,295
56 Transaction balances other than demand deposits
754,155
57 Nontransaction balances
753,999
Individuals, partnerships, and corporations
716,792'
717,222'
58
59
States and political subdivisions
29,116
29,218
60
U.S. government
1,168
881
6,377'
61
Depository institutions in the United States
6,45<K
473
62 Foreign governments, official institutions, and banks ..
456
299,670'
63 Liabilities for borrowed money
297,066'
64
Borrowings from Federal Reserve Banks
0
100
65 Treasury tax-and-Ioan notes
10,007
12,448
287,122'
66 All other liabilities for borrowed money
287,059'
95,298'
67 Other liabilities and subordinated notes and debentures ..
94,978'
68 Total liabilities
1,469,255' 1,444,981'
104,952'
69 Residual (total assets minus total liabilities)6
104,60C
Aug. 15
Aug. 22
Aug. 29
Sept. 5
Sept. 26
381,202
31,714
349,488
173,664
47,985
20,770
3,920
23,294
13,283
6,150
22,194
1,476
23,869
26,944
4,429
34,099
975,129
137,790
1,542,199
MEMO
70
71
72
73
74
75
76
77
\jm,\w
1. Beginning Jan. 6, 1988, the "Large bank" reporting group was revised
somewhat, eliminating some former reporters with less than $2 billion of assets
and adding some new reporters with assets greater than $3 billion.
2. Includes U.S. government-issued or guaranteed certificates of participation
in pools of residential mortgages.
3. Includes securities purchased under agreements to resell.
4. Includes allocated transfer risk reserve.
5. Includes federal funds purchased and securities sold under agreements to
repurchase; for information on these liabilities at banks with assets of $1 billion
or more on Dec. 31, 1977, see table 1.13.
6. This is not a measure of equity capital for use in capital-adequacy analysis or
for other analytic uses.
7. Exclusive of loans and federal funds transactions with domestic commercial
banks.
8. Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
A20
1.28
Domestic Financial Statistics • December 1990
ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS
IN N E W YORK CITY1
Millions of dollars, Wednesday figures
1990
Account
Aug. 1
1 Cash balances due from depository institutions
2 Total loans, leases, and securities, net2
Securities
3 U.S. Treasury and government agency 3
4
Trading account3
5
Investment account
6
Mortgage-backed securities4
All other maturing in
7
One year or less
8
Over one through five years
9
Over five years
10 Other securities3
11 Trading account3
12 Investment account
13
States and political subdivisions, by maturity
14
One year or less
13
Over one year
16
Other bonds, corporate stocks, and securities
17 Other trading account assets 3
18
19
20
21
22
23
24
25
26
2/
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
43
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, net6
All other assets 7
47 Total assets
48
49
30
31
32
33
34
33
36
37
38
39
60
61
62
63
64
63
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 money8
Other liabilities and subordinated notes and debentures
68 Total liabilities
69 Residual (total assets minus total liabilities)9
Aug. 8
Aug. 15
Aug. 22
Aug. 29
Sept. 5
Sept. 12
Sept. 19
Sept. 26
30,759
23,366
30,190
28,032
21,286
24,823
22,609
22,331
26,897
228,562'
226,152'
236,562'
230,538'
222,626'
233,134
222,200
226,124
218,728
0
0
22,646
11,294
0
0
22,684
11,471
0
0
23,046
11,492
0
0
22,896
10,890
0
0
23,381
11,329
0
0
23,624
11,325
0
0
23,589
11,332
0
0
23,814
11,342
0
0
24,372
11,895
3,180
3,810
4,362
0
0
13,333
6,207
598
5,609
7,126
0
3,070
3,805
4,338
0
0
13,454
6,194
596
5,597
7,260
0
3,270
3,924
4,360
0
0
13,258
6,209
628
5,581
7,050
0
3,272
4,488
4,246
0
0
13,424
6,163
628
5,536
7,261
0
3,265
4,545
4,241
0
0
13,576
6,116
615
5,500
7,461
0
3,255
4,548
4,496
0
0
13,315
6,121
611
5,509
7,194
0
3,026
4,732
4,498
0
0
13,310
6,118
613
5,505
7,192
0
3,048
4,735
4,689
0
0
13,272
6,113
615
5,498
7,159
0
3,023
4,768
4,685
0
0
13,044
6,107
612
5,495
6,937
0
26,368
13,072
10,470
2,826
182,092r
176,525r
58,962'
122
58,840'
58,093'
747
62,859
4,125
58,734
19,771
18,689
7,251
2,973
8,465
5,327
136
4,734
342
5,704
5,568
1,826
14,051
166,215'
57,453'
24,288
12,088
9,443
2,756
181,483'
175,894'
58,758'
117
58,641'
57,928'
713
63,016
4,132
58,884
19,731
17,951
6,863
2,736
8,352
5,622
146
4,720
267
5,683
5,589
1,829
13,928
165,726'
54,257'
32,245
17,834
11,882
2,528
183,811'
178,184'
59,968'
128
59,839'
59,192'
648
62,975
4,141
58,834
19,829
19,865
7,537
3,809
8,519
4,490
157
4,668
448
5,784
5,627
1,835
13,963
168,013'
57,558'
24,420
12,000
9,898
2,523
185,607'
179,913'
59,472'
130
59,343'
58,695'
647
62,816
4,145
58,672
19,893
21,010
8,876
3,961
8,172
6,039
147
4,648
267
5,620
5,694
1,858
13,951
169,797'
57,114'
19,855
9,507
8,026
2,322
181,899'
176,214'
58,736'
124
58,612'
57,963'
649
62,463
4,151
58,312
19,863
19,763
8,439
3,246
8,078
4,990
146
4,592
339
5,322
5,685
1,869
14,218
165,813'
58,650'
27,737
16,687
8,764
2,286
184,378
178,707
58,751
137
58,614
57,871
743
62,643
4,158
58,485
19,849
19,674
7,840
3,409
8,425
6,712
146
4,585
535
5,812
5,672
1,863
14,059
168,456
60,890
21,494
11,244
8,166
2,082
179,444
173,751
58,361
139
58,222
57,557
664
62,602
4,170
58,432
19,902
18,636
6,956
3,272
8,408
4,557
145
4,548
311
4,689
5,692
1,866
13,770
163,807
58,156
24,259
13,830
8,415
2,015
180,404
174,718
58,134
138
57,996
57,141
855
62,684
4,180
58,504
20,010
18,483
6,877
3,386
8,221
4,968
150
4,515
234
5,539
5,686
1,873
13,752
164,779
58,782
19,105
11,770
5,517
1,818
177,699
171,946
56,876
145
56,730
56,026
704
62,312
4,188
58,123
20,023
17,581
6,614
2,954
8,013
4,288
159
4,470
374
5,863
5,753
1,870
13,622
162,208
54,579
316,774
303,775
324,311
315,683
302,562
318,846
302,966
307,238
300,204
55,134
36,853
813
288
7,806
5,330
836
3,209
44,751
32,363
614
197
3,900
3,728
553
3,397
58,835
41,742
657
338
7,722
4,934
1,216
2,226
47,894
33,485
655
152
4,628
5,154
738
3,082
45,519
30,876
466
186
4,571
5,036
681
3,703
50,937
35,010
641
202
4,669
5,308
1,261
3,846
45,219
32,015
565
161
4,302
4,977
786
2,414
47,558
33,036
780
216
4,652
4,648
986
3,241
52,063
33,760
1,539
168
5,340
5,423
1,112
4,721
8,832
117,472
109,254
6,058
37
1,929
194
72,464
0
2,045
70,419
37,171
8,737
116,647
108,521
6,022
37
1,877
189
69,674
0
2,640
67,033
38,050
8,779
119,678
111,570
6,012
41
1,856
199
76,139
0
3,040
73,099
35,298
8,571
116,813
108,796
5,945
41
1,856
175
79,253
6,232
4,688
68,332
37,610
8,489
116,135
108,150
5,891
41
1,870
182
70,446
0
4,638
65,807
36,612
8,957
116,329
108,562
5,681
38
1,867
181
77,416
1,325
2,574
73,516
39,747
8,858
115,465
107,786
5,602
43
1,852
181
72,036
0
3,676
68,360
35,593
8,782
114,546
107,119
5,501
44
1,700
183
72,997
525
7,280
65,192
37,921
8,348
112,195
104,763
5,518
47
1,687
180
62,433
0
6,114
56,319
39,867
291,074
277,859
298,730
290,143
277,201
293,386
277,171
281,804
274,906
25,700
25,916
25,580
25,541
25,362
25,460
25,794
25,434
25,298
224,116'
188,137'
39,617
2,683
222,957'
186,819'
39,215
2,394
226,989'
190,684'
39,628
2,516
225,472'
189,152'
38,643
2,524
220,766'
183,808'
38,116
2,644
224,528
187,588
37,544
2,456
219,637
182,737
37,585
2,200
221,043
183,958
37,239
2,149
215,836
178,420
35,613
2,058
MEMO
70
71
72
73
Total loans and leases (gross) and investments adjusted 210
Total loans and leases (gross) adjusted10
Time deposits in amounts of $100,000 or more
U.S. Treasury securities maturing in one year or less
1. These data also appear in the Board's H.4.2 (504) release. For address, see
inside front cover.
2. Excludes trading account securities.
3. Not available due to confidentiality.
4. Includes U.S. government-issued or guaranteed certificates of participation
in pools of residential mortgages.
5. Includes securities purchased under agreements to resell.
FRASER allocated transfer risk reserve.
6. Includes
Digitized for
7. Includes trading account securities.
8. Includes federal funds purchased and securities sold under agreements to
repurchase.
9. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
10. Exclusive of loans and federal funds transactions with domestic commercial banks.
Weekly Reporting Commercial Banks
1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS 1
Liabilities
A21
Assets and
Millions of dollars, Wednesday figures
1990
Account
Aug. 1
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
10
Bankers acceptances and commercial
paper
All other
11
12
U.S. addressees
13
Non-U.S. addressees
14 Loans secured by real estate3
15 To financial institutions
16
Commercial banks in the United States..
17
Banks in foreign countries
18
Nonbank financial institutions
19 To foreign governments and official
institutions
For purchasing and carrying securities . . . .
20
All other3
21
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
Nontransaction accounts5
29
30
Individuals, partnerships, and
corporations
Other
31
32
Borrowings from other than directly
related institutions
33
Federal funds purchased6
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. 8
Aug. 15
Aug. 22
Aug. 29
Sept. 5
Sept. 12
Sept. 19
Sept. 26
13,975
154,212
15,706
157,005
14,755
158,374
15,019
160,028'
14,262
158,446'
15,218
157,326
14,389
156,471
14,490
159,729
14,492
159,915
10,629
7,217
7,157
6,126
1,031
129,209
75,352'
10,189
7,292
7,994
6,788
1,206
131,530
75,773
10,524
7,263
8,053
6,996
1,057
132,534
77,540
10,591
7,272
8,418
7,264
1,154
133,747'
77,064
10,258
7,266
8,267
7,290
977
132,655'
75,964'
10,519
7,317
6,640
5,710
930
132,850
77,426
10,302
7,317
5,377
4,428
949
133,475
75,919
10,574
7,324
7,016
5,722
1,294
134,815
76,769
11,076
7,324
8,960
7,883
1,077
132,555
76,633
2,129
73,223'
71,909'
1,314
24,06c
26,465
20,504
1,028
4,933
2,234
73,539
72,212
1,327
24,169
27,580
21,457
1,163
4,960
2,282
75,258
73,913
1,345
24,149
26,425
20,239
1,320
4,866
2,149
74,915
73,531
1,384
24,214
27,223'
20,918
1,503
4,802'
2,358
73,606'
72,272'
1,334
24,345'
27,768'
20,839
1,923
5,006'
2,392
75,034
73,690
1,344
24,459
26,660
19,731
1,770
5,159
2,414
73,505
72,217
1,288
24,573
27,275
20,713
1,628
4,934
2,636
74,133
72,727
1,406
24,632
27,818
21,222
1,556
5,040
2,566
74,067
72,699
1,368
24,692
26,488
19,682
1,688
5,118
227
2,174
1,607
33,783
15,693
222,188
209
2,887
1,324
33,249
19,522
225,902
208
3,488'
1,550
33,257
14,844
223,146
214
2,955'
1,409
32,824
14,157
219,690
224
2,726
1,355
32,703
15,260
220,508
233
4,037
1,438
32,502
12,044
215,406
219
3,939
1,438
31,468
14,450
220,139
230
2,983
1,529
32,071
11,611
218,091
208
1,663
1,461
33,752
17,175
219,118
48,720'
4,347'
49,133'
4,332
49,364'
4,465
49,598'
4,321
48,643'
4,125
49,373
4,645
49,313
4,558
49,184
4,894
48,299
4,897
2,840
1,507'
44,373'
2,778
1,554
44,801'
2,864
1,601
44,899'
2,908
1,413
45,277'
2,796
1,329
44,518'
3,082
1,563
44,728
2,817
1,741
44,755
3,046
1,848
44,290
2,981
1,916
43,402
36,300'
8,073'
36,314'
8,487'
35,941'
8,958'
35,665'
9,612'
9,008'
35,139
9,589
34,669
10,086
34,244
10,046
34,012
9,390
111,948'
56,633'
112,608'
52,051'
117,008'
56,946'
114,970'
53,348'
109,748'
50,093'
109,432
52,191
108,316
51,631
110,787
56,431
107,506
49,808
29,059
27,574'
55,315
25,886
26,165'
60,557
32,304
24,642'
60,062
27,323
26,025'
61,622
25,291
24,802'
59,655
27,407
24,784
57,241
26,363
25,268
56,685
29,101
27,330
54,356
27,001
22,807
57,698
31,749
23,566
33,774'
24,674
219,118
33,314
27,243
33,273
27,174
222,188
34,374
25,688
33,996
25,532
225,902
33,980
27,642
33,118
25,460
223,146
33,679
25,976
32,946
28,354
219,690
32,981
24,260
32,536
29,167
220,508
31,287
25,398
33,030
24,747
215,406
29,886
24,470
31,997
28,172
220,139
29,178
28,520
31,999
30,287
218,091
127,582
109,736
128,760
111,279
131,139
113,352
131,846'
113,983'
130,317'
112,793'
131,885
114,049
131,330
113,711
132,785
114,887
132,350
113,950
MEMO
42 Total loans (gross) and securities adjusted7 ..
43 Total loans (gross) adjusted7
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
Domestic Financial Statistics • December 1990
1.31 GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations1
Billions of dollars, estimated daily-average balances, not seasonally adjusted
Commercial banks
1990
1989
Type of holder
1985
Dec.
1986
Dec.
1987
Dec.
1988
Dec.
Mar.
June
Sept.
Dec.
Mar.
June
1 All holders—Individuals, partnerships, and
corporations
321.0
363.6
343.5
354.7
330.4
329.3
337.3
352.2
328.7
334.3
2
3
4
5
6
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
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
33.7
190.4
87.9
2.9
22.4
33.8
202.5
90.3
3.1
22.5
34.1
183.3
86.6
3.0
21.7
34.9
186.5
86.4
3.1
23.5
Financial business
Nonfinancial business
Consumer
Foreign
Other
Weekly reporting banks
1990
1989
1985
Dec.
1986
Dec.
1987
Dec.
1988
Dec.
Mar.
7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
Sept.
Dec.
Mar.
June
168.6
195.1
183.8
198.3
181.9
182.2
186.6
196.7
183.7
186.3
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
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
26.3
101.6
43.0
2.8
12.9
27.6
108.8
44.1
3.0
13.2
25.6
100.1
42.4
2.8
12.8
25.0
101.7
43.3
2.9
13.3
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.
Beginning March 1985, financial business deposits and, by implication, total
gross demand deposits have been redefined to exclude demand deposits due to
thrift institutions. Historical data have not been revised. The estimated volume of
such deposits for December 1984 is $5.0 billion at all insured commercial banks
and $3.0 billion at weekly reporting banks.
June
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 .
3. 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
1990
1985
Dec.
Instrument
1986
Dec.
1987
Dec.
1988
Dec.
1989
Dec.
Mar.
Apr.
May
June
July
Aug.
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
2
3
4
5
6
298,779
329,991
358,056
457,297
529,055
546,786
544,481
538,686
537,023
545,849
546,491
78,443
101,072
102,844
160,094
187,084
184,097
185,107
186,155
191,463
199,466
199,099
1,602
2,265
1,428
1,248
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
135,320
151,820
173,980
194,537
212,210
215,501
213,843
209,203
202,101
202,829
202,217
44,778
85,016
Financial companies'
Dealer-placed paper
Total
Bank-related (not seasonally
adjusted)
Directly placed paper
Total
Bank-related (not seasonally
adjusted)
Nonfinancial companies5
40,860
77,099
43,173
81,232
43,155
102,666
n.a.
129,761
n.a.
147,188
n.a.
145,531
n.a.
143,328
n.a.
143,459
n.a.
143,554
n.a.
145,375
Bankers dollar acceptances (not seasonally adjusted)6
68,413
7 Total
64,974
70,565
66,631
62,972
55,865
53,945
54,766
53,750
52,006
52,324
Holder
8 Accepting banks
9
Own bills
10 Bills bought
Federal Reserve Banks
11
Own account
12 Foreign correspondents
13 Others
11,197
9,471
1,726
13,423
11,707
1,716
10,943
9,464
1,479
9,086
8,022
1,064
9,433
8,510
924
9,574
8,386
1,188
9,200
7,850
1,350
9,000
7,632
1,368
9,972
8,639
1,332
9,628
8,395
1,233
9,944
7,895
2,049
0
937
56,279
0
1,317
50,234
0
965
58,658
0
1,493
56,052
0
1,066
52,473
0
1,180
45,111
0
1,141
43,604
0
1,291
44,475
0
1,507
42,271
0
1,571
40,806
0
1,560
40,821
Basis
14 Imports into United States
15 Exports from United States
16 All other
15,147
13,204
40,062
14,670
12,960
37,344
16,483
15,227
38,855
14,984
14,410
37,237
15,651
13,683
33,638
14,418
12,161
29,286
13,413
12,610
27,922
13,993
12,727
28,046
14,801
12,511
26,438
13,691
12,186
26,129
13,188
12,221
26,915
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 panel is revised every January and currently has
about 100 respondents. The current reporting group accounts for over 90 percent
of total acceptances activity.
1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per year
Period
Rate
7.75
8.00
8.25
8.75
9.25
9.00
8.75
8.50
9.00
9.50
10.00
10.50
11.00
11.50
11.00
1987
1988
1989
1987— Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Average
rate
8.21
9.32
10.87
7.50
7.50
7.50
7.75
8.14
8.25
8.25
8.25
8.70
9.07
8.78
8.75
10.50
10.00
NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases.
For address, see inside front cover.
Period
1988—Jan.
Feb.
Mar.
Apr.
May ,
June
July .
Aug.
Sept
Ocl
Nov.
Dec.
1989— Jan
Feb.
Mar.
Apr.
May ,
June
Average
rate
8.75
8.51
8.50
8.50
8.84
9.00
9.29
9.84
10.00
10.00
10.05
10.50
10.50
10.93
11.50
11.50
11.50
11.07
Period
1989— July
Aug.
Sept.
Oct.
Nov.
Dec.
1990— Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
A24
1.35
Domestic Financial Statistics • December 1990
I N T E R E S T R A T E S M o n e y and Capital Markets
Averages, percent per year; weekly, monthly and annual figures are averages of business day data unless otherwise noted.
1990
Instrument
1987
1988
1990, week ending
1989
June
July
Aug.
Sept.
Aug. 31
Sept. 7
Sept. 14
Sept. 21
Sept. 28
MONEY MARKET RATES
1 Federal funds1'2
2 Discount window borrowing1'
Commercial paper •
3
1-month
4
3-month
5
6-month
Finance paper, directly placed '
6
1-month
7
3-month
8
6-month
Bankers acceptances 5 ' 6
3-month
9
10 6-month
Certificates of deposit, secondary market7
11
1-month
12
3-month
N
6-month
14 Eurodollar deposits. 3-month
U.S. Treasury bills5
Secondary market
15
3-month
16 6-month
17
1-year
Auction average
18
3-month
19 6-month
20
1-year
6.66
5.66
7.57
6.20
9.21
6.93
8.29
7.00
8.15
7.00
8.13
7.00
8.20
7.00
8.08
7.00
8.25
7.00
8.12
7.00
8.18
7.00
8.26
7.00
6.74
6.82
6.85
7.58
7.66
7.68
9.11
8.99
8.80
8.21
8.14
8.06
8.09
7.99
7.90
7.99
7.88
7.77
8.09
7.96
7.83
8.03
7.96
7.89
7.96
7.85
7.72
8.02
7.88
7.75
8.10
7.96
7.81
8.26
8.13
8.01
6.61
6.54
6.37
7.44
7.38
7.14
8.99
8.72
8.16
8.12
8.01
7.79
7.99
7.87
7.66
7.88
7.69
7.46
7.98
7.74
7.50
7.94
7.78
7.56
7.88
7.66
7.47
7.94
7.71
7.48
7.99
7.76
7.50
8.08
7.82
7.55
6.75
6.78
7.56
7.60
8.87
8.67
8.00
7.89
7.86
7.73
7.75
7.64
7.83
7.70
7.80
7.73
7.68
7.57
7.73
7.61
7.85
7.72
8.02
7.89
6.75
6.87
7.01
7.07
7.59
7.73
7.91
7.85
9.11
9.09
9.08
9.16
8.20
8.23
8.28
8.23
8.09
8.10
8.12
8.09
7.98
7.97
7.99
7.99
8.08
8.06
8.06
8.07
8.02
8.04
8.10
8.14
7.94
7.94
7.95
7.98
8.01
7.97
7.97
7.95
8.09
8.06
8.06
8.03
8.25
8.24
8.25
8.24
5.78
6.03
6.33
6.67
6.91
7.13
8.11
8.03
7.92
7.73
7.63
7.53
7.62
7.52
7.40
7.45
7.38
7.26
7.36
7.32
7.24
7.46
7.44
7.32
7.38
7.34
7.23
7.38
7.32
7.24
7.38
7.31
7.25
7.29
7.30
7.25
5.82
6.05
6.33
6.68
6.92
7.17
8.12
8.04
7.91
7.74
7.64
7.65
7.66
7.57
7.52
7.44
7.36
7.37
7.38
7.33
7.25
7.49
7.48
7.40
7.39
7.36
n.a.
7.41
7.34
n.a.
7.39
7.30
n.a.
7.32
7.33
7.25
6.77
7.42
7.68
7.94
8.23
8.39
8.59
7.65
8.10
8.26
8.47
8.71
8.85
8.96
8.53
8.57
8.55
8.50
8.52
8.49
8.45
8.10
8.35
8.40
8.43
8.52
8.48
8.46
7.94
8.16
8.26
8.33
8.46
8.47
8.50
7.78
8.06
8.22
8.44
8.64
8.75
8.86
7.76
8.08
8.27
8.51
8.79
8.89
9.03
7.85
8.16
8.33
8.56
8.79
8.88
9.00
7.74
8.06
8.24
8.48
8.76
8.85
8.97
7.75
8.06
8.24
8.47
8.73
8.84
8.97
7.77
8.08
8.25
8.52
8.80
8.92
9.06
7.79
8.12
8.33
8.58
8.85
8.96
9.10
8.64
8.98
8.58
8.62
8.64
8.97
9.11
9.11
9.07
9.06
9.14
9.17
7.14
8.17
7.63
7.36
7.83
7.68
7.00
7.40
7.23
6.88
7.11
7.24
6.96
7.13
7.19
6.99
7.21
7.32
7.18
7.48
7.43
7.19
7.47
7.47
7.13
7.41
7.41
7.06
7.35
7.35
7.11
7.37
7.41
7.40
7.80
7.53
9.91
9.38
9.68
9.99
10.58
10.18
9.71
9.94
10.24
10.83
9.66
9.26
9.46
9.74
10.18
9.67
9.26
9.49
9.70
10.22
9.65
9.24
9.47
9.69
10.20
9.84
9.41
9.63
9.89
10.41
10.02
9.56
9.77
10.09
10.64
9.98
9.56
9.75
10.03
10.56
9.98
9.57
9.72
10.06
10.54
9.97
9.54
9.71
10.06
10.57
10.00
9.51
9.77
10.07
10.66
10.11
9.63
9.87
10.16
10.76
9.96
10.20
9.79
9.85
9.96
10.29
10.28
10.31
10.23
10.28
10.35
10.25
8.37
3.08
9.23
3.64
9.05
3.45
9.01
3.36
8.94
3.37
8.97
3.65
9.05
3.85
9.02
3.76
9.01
3.76
9.04
3.79
9.00
3.81
9.13
4.03
CAPITAL MARKET RATES
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
U.S. Treasury notes and bonds"
Constant maturities
1-year
2-year
3-year
5-year
7-year
10-year
30-year
Composite
Over 10 years (long-term)
State and local notes and bonds
Moody's series14
Aaa
Baa
Bond Buyer series15
Corporate bonds
Seasoned issues 16
All industries
Aaa
Aa
A
Baa
A-rated, recently offered utility
bonds17
MEMO: Dividend/price ratio
Preferred stocks
Common stocks
1. Weekly, monthly and annual figures are averages of all calendar days,
where the rate for a weekend or holiday is taken to be the rate prevailing on the
preceding business day. The daily rate is the average of the rates on a given day
weighted by the volume of transactions at these rates.
2. Weekly figures are averages for statement week ending Wednesday.
3. Rate for the Federal Reserve Bank of New York.
4. Unweighted average of offering rates quoted by at least five dealers (in the
case of commercial paper), or finance companies (in the case of finance paper).
Before November 1979, maturities for data shown are 30-59 days, 90-119 days,
and 120-179. days for commercial paper; and 30-59 days, 90-119 days, and
150-179 days for finance paper.
5. Yields are quoted on a bank-discount basis, rather than in an investment
yield basis (which would give a higher figure).
6. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quoted by the dealers).
7. Unweighted average of offered rates quoted by at least five dealers early in
the day.
8. Calendar week average. For indication purposes only.
9. Unweighted average of closing bid rates quoted by at least five dealers.
10. Rates are recorded in the week in which bills are issued. Beginning with the
Treasury bill auction held on Apr. 18, 1983, bidders were required to state the
percentage yield (on a bank discount basis) that they would accept to two decimal
places. Thus, average issuing rates in bill auctions will be reported using two
rather than three decimal places.
11. Yields are based on closing bid prices quoted by at least five dealers.
12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields
are read from a yield curve at fixed maturities. Based on only recently issued,
actively traded securities.
13. Averages (to maturity or call) for all outstanding bonds neither due nor
callable in less than 10 years, including one very low yielding "flower" bond.
14. General obligations based on Thursday figures; Moody's Investors Service.
15. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
16. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
17. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of
call protection. Weekly data are based on Friday quotations.
18. Standard and Poor's corporate series. Preferred stock ratio based on a
sample of ten issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
NOTE. These data also appear in the Board's H.15 (519) and G. 13 (415) releases.
For address, see inside front cover.
Financial Markets
1.36 STOCK MARKET
A25
Selected Statistics
1990
Indicator
1987
1988
1989
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
4
Utility
5
Finance
6 Standard & Poor's Corporation
(1941-43 = 10)1
161.78
195.31
140.52
74.29
146.48
149.97
180.83
134.09
72.22
127.41
180.13
228.04
174.90
94.33
162.01
187.96
225.79
173.67
95.69
150.11
182.55
220.60
166.69
92.15
142.68
186.26
226.14
175.08
92.99
143.14
185.61
226.86
173.54
91.92
138.57
191.35
234.85
173.53
93.29
142.94
196.68
242.42
177.37
93.65
147.93
196.61
245.86
173.18
89.85
143.11
181.45
226.73
147.41
85.81
128.14
173.22
216.81
136.95
83.30
118.59
287.00
265.88
323.05
339.97
330.45
338.47
338.18
350.25
360.39
360.03
330.75
315.41
7 American Stock Exchange
(Aug. 31, 1973 = 50?
316.78
295.08
356.67
367.40
355.30
360.77
353.32
353.82
361.62
359.09
333.49
318.53
188,922
13,832
161,386
9,955
165,568
13,124
172,420
14,831
155,960
13,735
149,240
15,133
140,062
13,961
163,486
14,005
153,634
12,421
160,490
12,529
174,446
15,881
142,054
11,668
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-account5
12 Cash-account
31,990
32,740
34,320
32,640
31,480
30,760
31,060
31,600
31,720
32,130
30,350
29,640
4,750
15,640
5,660
16,595
7,040
18,505
6,755
17,370
6,575
16,200
6,525
16,510
6,465
15,375
6,215
15,470
6,490
15,625
6,385
17,035
7,140
16,745
7,285
16,185
Margin requirements (percent of market value and effective date)6
Mar. 11, 1968
13 Margin stocks
14 Convertible bonds
15 Short sales
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Beginning July 5, 1983, the American Stock Exchange rebased its index
effectively cutting previous readings in half.
3. Beginning July 1983, under the revised Regulation T, margin credit at
broker-dealers includes credit extended against stocks, convertible bonds, stocks
acquired through exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds,
and subscription issues was discontinued in April 1984.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
5. New series beginning June 1984.
6. These regulations, adopted by the Board of Governors pursuant to the
Securities Exchange Act of 1934, limit the amount of credit to purchase and carry
"margin securities" (as defined in the regulations) when such credit is collateralized by securities. Margin requirements on securities other than options are the
difference between the market value (100 percent) and the maximum loan value of
collateral as prescribed by the Board. Regulation T was adopted effective Oct. 15,
1934; Regulation U, effective May 1, 1936; Regulation G, effective Mar. 11, 1968;
and Regulation X, effective Nov. 1, 1971.
On Jan. 1, 1977, the Board of Governors for the first time established in
Regulation T the initial margin required for writing options on securities, setting
it at 30 percent of the current market-value of the stock underlying the option. On
Sept. 30, 1985, the Board changed the required initial margin, allowing it to be the
same as the option maintenance margin required by the appropriate exchange or
self-regulatory organization; such maintenance margin rules must be approved by
the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC
approved new maintenance margin rules, permitting margins to be the price of the
option plus 15 percent of the market value of the stock underlying the option.
A26
Domestic Financial Statistics • December 1990
1.37 SELECTED FINANCIAL INSTITUTIONS
Selected Assets and Liabilities
Millions of dollars, end of period
1989
Account
1987
1990
1988
Oct.
Nov.
Dec.
Jan/
Feb/
Mar.
Apr.
May
June
July
n.a.
n.a.
n a.
n.a.
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 Other3
1,250,855
1,350,500 1,286,710
1,277,191
1,249,055
1,236,507
764,513
748,780
745,091
733,729
727,544
721,450
717,687
715,461'
708,574
201,828
214,587
181,464
176,386
170,532
169,414
167,259
167,683'
166,164
165,713
42,344
23,163
57,902
37,950
33,889
61,922
25,950
32,572
59,722
24,976
32,344
59,372
25,457
32,150
58,685
24,135
31,916
57,322
22,809
31,775
56,821
23,073'
31,069'
56,785
721,593
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
21,984'
30,932
56,641'
21,992
30,352
55,658
3,467
3,056
3,107
3,194
3,592
2,252
2,279
2,456'
2,229'
1,766
169,717
122,462
186,986
129,610
172,727
120,501
172,465
119,704
166,053
116,955
160,534
116,164
157,292
115,587
162,313'
113,342'
153,348'
112,051'
152,393
108,892
1,350,500 1,286,710
1,277,191
1,249,055
1,236,507
948,500
275,979
130,514
145,465
30,971
31,260
946,655
268,462
127,671
140,791
31,991
30,083
945,656
252,230
124,577
127,653
27,556
23,612
933,843
252,942
121,732
131,210
26,979
23,021
10 Liabilities and net worth . 1,250,855
11
12
13
14
15
16
1,225,091 1,223,351' 1,210,383' 1,197,824
932,616
249,917
116,363
133,554
21,941
n.a.
971,700
299,400
134,168
165,232
24,216
n.a.
1,225,091 1,223,351' 1,210,383' 1,197,824
926,439
248,134
120,633
127,501
28,101
22,419
929,910'
246,875
117,489
129,386
25,997'
20,569'
916,058
246,647
115,620
131,027
27,366'
20,326'
902,634
241,983
114,047
127,936
28,773
24,357
SAIF-insured federal savings banks
17 Assets
284,270
425,966
502,484
499,995
498,522
583,063
581,983
595,644
593,345
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
161,926
230,734
283,652
282,510
283,844
331,503
330,366
332,995
333,300
45,826
64,957
72,332
71,204
70,499
76,765
77,016
80,059
81,030
9,100
6,504
17,696
13,140
16,731
24,222
13,506
18,299
28,322
13,216
18,172
28,079
13,548
18,143
28,212
12,309
20,310
20,310
11,615
20,244
20,244
11,844
20,366
20,365
11,590
20,324
20,324
678
889
1,048
1,082
1,193
949
986
1,001
908
591
35,347
24,069
880
61,029
35,412
1,085
65,193
40,799
1,092
65,191
40,852
1,101
64,538
39,981
n.a.
70,742
45,444
n.a.
70,054
46,238
n.a.
76,158
46,371
n.a.
72,618
46,180
27 Liabilities and net worth .
284,270
425,966
502,484
499,995
498,522
583,063
581,983
595,644
593,345
28
29
30
31
32
33
203,196
60,716
29,617
31,099
5,324
15,034
298,197
99,286
46,265
53,021
8,075
20,218
355,923
114,231
57,793
56,438
10,317
25,983
355,874
111,369
56,842
54,527
10,749
25,958
360,547
108,448
57,032
51,416
9,041
22,716
418,555
126,398
63,516
62,882
9,770
25,986
419,246
124,171
63,026
61,145
10,347
25,723
433,000
126,253
63,550
62,703
9,435
24,169
429,469
126,240
63,120
63,120
9,982
23,505
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
n.a.
Financial Markets
All
1.37—Continued
1989
Account
1987
1990
1988
Oct.
Nov.
Dec.
Jan/
Feb/
Credit unions
Mar.
Apr.
May
June
July
4
34 Total assets/liabilities
and capital
174,593
181,527
182,856
183,688
183,301
186,119
192,718
193,208
195,020
195,302
194,523
35
36
114,566
60,027
118,887
62,640
119,682
63,174
120,666
63,022
120,489
62,812
122,885
63,234
126,690
66,028
127,250
65,958
128,648
66,372
128,142
67,160
127,564
66,959
113,191
73,766
39,425
159,010
104,431
54,579
122,997
80,570
42,427
164,695
107,588
57,107
122,899
80,601
42,298
165,533
108,319
57,214
122,608
80,272
42,336
167,371
109,653
57,718
122,332
80,041
42,291
166,629
109,818
56,811
121,968
79,715
42,253
168,609
111,246
57,363
121,660
79,407
42,253
175,942
115,714
60,228
122,616
80,205
42,411
175,745
115,554
60,191
123,205
80,550
42,655
176,701
116,402
60,299
123,968
81,063
42,905
178,127
116,717
61,408
124,343
81,063
43,280
176,360
115,305
61,056
n.a.
n.a.
n.a.
n.a.
n.a.
Federal
State
37 Loans outstanding
38
Federal
39
State
40 Savings
41
Federal
42
State
n. a.
Life insurance companies
43 Assets
44
45
46
47
48
49
50
51
52
53
54
Securities
Government
United States5
State and local
Foreign6
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
1,044,459
84,426
57,078
10,681
16,667
569,199
472,684
96,515
203,545
34,172
53,626
89,586
1,166,870 1,276,510' 1,288,728' 1,299,756'
84,051
58,564
9,136
16,351
660,416
556,043
104,373
232,863
37,371
54,236
93,358
77,999'
53,116'
8,958'
15,925'
747,782'
626,643'
121,139'
250,019'
39,793'
56,963'
103,954'
77,092'
52,203'
9,013'
15,876'
755,589'
632,563'
123,026'
252,07c
39,834'
57,183'
106,960'
77,297'
52,517'
9,028'
15,752'
764,521'
638,907'
125,614'
254,215'
39,908'
57,439'
106,376'
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. Data include all federally insured credit unions, both federal and state
chartered, serving natural persons.
5. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
6. Issues of foreign governments and their subdivisions and bonds of the
n.a.
n.a.
International Bank for Reconstruction and Development.
NOTE. SAIF-insured institutions: Estimates by the OTS for all institutions
insured by the SAIF and based on the OTS thrift Financial Report.
SAIF-insured federal savings banks: Estimates by the OTS for federal savings
banks insured by the SAIF and based on the OTS thrift Financial Report.
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
1.38
Domestic Financial Statistics • December 1990
FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
Fiscal
year
1988
Fiscal
year
1989'
Fiscal
year
1990
1990
Apr.
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 2
May
June
July
Aug.
Sept.
908,166
666,675
241,491
1,063,318
860,627
202,691
-155,152
-193,952
38,800
990,701
727,035
263,666
1,144,020
933,109
210,911
-153,319
-206,074
52,755
1,031,463
749,809
281,654
1,251,850
1,026,785
225,065
-220,387
-276,976
56,589
139,624
106,775
32,849
97,795'
79,679'
18,116
41,829'
27,096'
14,733
69,212
45,514
23,698
111,693'
91,742'
19,951
-42,482'
-46,229'
3,747
110,614
83,717
26,897
121,719'
105,759'
15,960
-11,105'
-22,042'
10,937
72,357
50,446
21,911
98,28c
79,833'
18,447
-25,924'
-29,388'
3,464
78,486
56,284
22,202
131,206'
89,717'
41,489
-52,719'
-33,432'
-19,287
102,874
78,542
24,332
82,026
80,613
1,413
20,848
-2,071
22,919
166,139
-7,962
-3,025
141,806
3,425
8,088
264,453
818
-44,884
-5,935
-20,830
-15,064'
23,380
25,594
-6,492'
23,520
-20,916
8,501'
24,23C
9,862
-8,168'
47,329
2,433
2,957'
-2,595
17,832
-421
44,398
13,023
31,375
40,973
13,452
27,521
40,155
7,638
32,517
39,296
5,205
34,091
13,702
4,426
9,276
34,618
5,470
29,148
24,756
6,369
18,387
22,323
4,453
17,869
40,155
7,638
32,517
MEMO
13 Treasury operating balance (level, end of
period)
14 Federal Reserve Banks
15 Tax and loan accounts
1. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985, all former off-budget entries are now presented on-budget. The Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the FFB to finance their programs. The act has also moved two
social security trust funds (Federal old-age survivors insurance and Federal
disability insurance trust funds) off-budget.
2. Includes SDRs; reserve position on the U.S. quota in the IMF; loans to
international monetary fund; other cash and monetary assets; accrued interest
payable to the public; allocations of special drawing rights; deposit funds;
miscellaneous liability (including checks outstanding) and asset accounts;
seigniorage; increment on gold; net gain/loss for U.S. currency valuation adjustment; net gain/loss for IMF valuation adjustment; and profit on the sale of gold.
SOURCE. Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government and the Budget of the U.S. Government.
Federal Finance
A29
1.39 U.S. BUDGET RECEIPTS AND OUTLAYS 1
Millions of dollars
Calendar year
Fiscal
year
1988
Source or type
Fiscal
year
1989
1988
1990
1990
1989
H2
HI
H2
HI
July
Aug.
Sept.
102,874
RECEIPTS
1
908,166
All sources
? Individual income taxes, net
3
Withheld
Presidential Election Campaign Fund . . . .
4
Nonwithheld
5
6
Refunds
Corporation income taxes
Gross receipts
7
Refunds
8
9 Social insurance taxes and contributions,
net
Employment taxes and
10
contributions
Self-employment taxes and
11
contributions
Unemployment insurance
17.
Other net receipts
13
990,701
449,330
527,574
470,329
548,977
72,357
78,486
401,181
341,435
33
132,199
72,487
445,690
361,386
32
154,839
70,567
200,300
179,600
4
29,880
9,186
233,572
174,230
28
121,563
62,251
218,706'
193,2%
3
33,303
7,898'
243,087'
190,219
30
117,675'
64,838'
33,308'
32,211
31
2,783
1,716'
36,455'
34,610
-29
3,451
1,577'
46,664
30,806
1
17,420
1,562
109,683
15,487
117,015
13,723
56,409
7,250
61,585
7,259
52,269
6,842
58,830
8,326
3,364
1,307
2,564
956
18,868
1,524
334,335
359,416
157,603
200,127
162,574
210,476
29,610
32,047
31,010
305,093
332,859
144,983
184,569
152,407
195,269
27,554
27,919
30,480
17,691
24,584
4,659
18,504
22,011
4,546'
3,032
10,359
2,262
16,371
13,279
2,277
1,947
7,909
2,260
19,017
12,929
2,278
0
1,701
355
0
3,712
416
2,638
186
344
35,604
15,411
7,594
19,909
34,386
16,334
8,745
22,839
19,299
8,107
4,054
10,809
16,814
7,918
4,583
10,235
16,799'
8,667
4,451
13,704'
18,153'
8,0%
6,442
12,222'
3,052'
1,505
924
1,900'
2,740'
1,627
883
3,127'
2,774
1,273
875
2,934
14
IS
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts5
18
All types
19
7.0
71
77
73
24
National defense
International affairs
General science, space, and technology
Energy
Natural resources and environment
Agriculture
75
76
27
28
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
social services
31,938
36,694'
16,162
18,083
18,663
79
30
31
Health
Social security and medicare
Income security
44,490
297,828
129,332
48,390'
317,506
136,031'
23,360
149,017
64,978
24,078
162,195
70,937
25,339
162,322
67,950
3?
33
34
35
36
37
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Net interest6
Undistributed offsetting receipts
29,406
8,436
9,518
1,816
151,748
-36,967
30,066
9,422'
9,124'
15,797
4,361
5,137
0
78,317
-18,771
14,891
4,801
3,858
0
86,009
-18,131
14,864
4,963
4,760
15,217
4,983
4,916
OUTLAYS
1,063,318
1,144,020'
554,089'
565,425'
588,448'
640,982'
98,280'
131,206'
82,026
290,361
10,471
10,841
2,297
14,625
17,210
303,559'
9,574'
12,838'
3,702'
16,182'
16,948
150,496
2,627
5,852
1,966
9,072
6,911
148,098
6,567
6,238
2,221
7,022
9,619
149,613
5,971'
7,091
1,597
9,183
4,132
152,733
6,770
6,974
1,504
7,343
7,450
22,717
28
1,283
211
1,375
417
28,664
1,039
1,333
207
1,388
98
21,497
1,957
1,132
-357
1,517
67
18,828
27,272
5,294
29,091'
27,608'
5,361'
19,836
14,922
2,690
4,129
12,953
1,833
22,295
14,982
4,879
38,788
13,754
3,987
5,142
2,683
606
3,045
2,734
614
12,018
2,608
519
19,537
2,198
3,417
2,730
29,488
175,997
78,456
5,103
30,226
11,786
5,585
49,891
13,475
4,804
8,623
10,206
1,269
921
807
3,624
866
691
1,208
717
1,406
n.a.
169,317'
-37,212
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.
n.a.
n.a.
n.a.
n.a.
n.a.
87,927
-18,935
91,155
-17,688
15,153
-3,634
17,556
-2,987
15,697
-4,320
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
Domestic Financial Statistics • December 1990
1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1988
1989
1990
Item
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
1 Federal debt outstanding
2,614.6
2,707.3
2,763.6
2,824.0
2,881.1
2,975.5
3,081.9
3,175.5
3,266.1
2 Public debt securities
3
Held by public
4
Held by agencies
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
2,857.4
2,180.7
676.7
2,953.0
2,245.2
707.8
3,052.0
2,329.3
722.7
3,143.8
2,368.8
775.0
3,233.3
n.a.
n.a.
12.4
12.2
.2
22.9
22.6
.3
22.7
22.3
.4
24.0
23.6
.5
23.7
23.5
.1
22.5
22.4
.1
29.9
29.8
.2
31.7
31.6
.2
5 Agency securities
6
Held by public
7
Held by agencies
8 Debt subject to statutory limit
n.a.
n.a.
n.a.
2,586.9
2,669.1
2,725.6
2,784.6
2,829.8
2,921.7
2,988.9
3,077.0
3,161.2
9 Public debt securities
10 Other debt1
2,586.7
.1
2,668.9
.2
2,725.5
.2
2,784.3
.2
2,829.5
.3
2,921.4
.3
2,988.6
.3
3,076.6
.4
3,160.9
.4
11 MEMO: Statutory debt limit
2,800.0
2,800.0
2,800.0
2,800.0
2,870.0
3,122.7
3,122.7
3,122.7
3,195.0
1. Includes guaranteed debt of Treasuo* and other federal agencies, specified
participation certificates, notes to international lending organizations, and District
of Columbia stadium bonds.
1.41 GROSS PUBLIC DEBT OF U.S. TREASURY
SOURCES. Treasury Bulletin and Monthly Statement
United States.
of the Public Debt of the
Types and Ownership
Billions of dollars, end of period
1990
Type and holder
1986
1988
Q4
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 n o t e s . . .
Government account series 3
14 Non-interest-bearing debt
Q1
Q2
Q3
2,214.8
2,431.7
2,684.4
2,953.0
2,953.0
3,052.0
3,143.8
3,233.3
2,212.0
1,619.0
426.7
927.5
249.8
593.1
110.5
4.7
4.7
.0
90.6
386.9
2,428.9
1,724.7
389.5
1,037.9
282.5
704.2
139.3
4.0
4.0
2,663.1
1,821.3
414.0
1,083.6
308.9
841.8
151.5
6.6
107.6
575.6
2,931.8
1.945.4
430.6
1.151.5
348.2
986.4
163.3
6.8
6.8
.0
115.7
695.6
3,029.5
1.995.3
453.1
1.169.4
357.9
1,034.2
163.5
37.1
37.1
.0
118.0
705.1
3,121.5
2,028.0
453.5
1,192.7
366.8
1,093.5
164.3
36.4
36.4
.0
120.1
758.7
3,210.9
2,092.8
482.5
99.2
461.3
2,931.8
1.945.4
430.6
1.151.5
348.2
986.4
163.3
6.8
6.8
.0
115.7
695.6
2.8
2.8
21.3
21.2
21.2
22.4
22.3
22.4
403.1
211.3
1,602.0
203.5
28.0
105.6
68.8
262.8
477.6
222.6
1,731.4
201.5
14.6
104.9
84.6
284.6
589.2
238.4
1,858.5
193.8
707.8
228.4
2,015.8
180.6
14.4
107.9
93.8
337.1
722.7
219.3
2,115.1
107.3
87.1
313.6
707.8
228.4
2,015.8
180.6
14.4
107.9
93.8
337.1
95.0
338.0
775.0
231.4
2,135.5
n.a.
n.a.
n.a.
n.a.
n.a.
92.3
70.4
263.4
506.6
101.1
71.3
299.7
569.1
109.6
79.2
362.2
593.9
117.7
93.8
393.4
674.3
117.7
93.8
393.4
674.3
119.9
95.0
386.9
754.9
n.a.
392.7
n.a.
.0
6.6
.0
1,218.1
377.2
1,118.2
161.3
n.a.
36.0
.0
122.2
779.4
4
By holder
15 U.S. government agencies and trust funds
16 Federal Reserve Banks
17 Private investors
18
Commercial banks
19
Money market funds
20
Insurance companies
21
Other companies
22
State and local Treasurys
Individuals
23
Savings bonds
24
Other securities
25
Foreign and international5
26
Other miscellaneous investors 6
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.
11.8
182.0
31.3
108.0
121.6
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 and the
Treasury Bulletin.
Federal Finance
1.42 U.S. GOVERNMENT SECURITIES DEALERS
A31
Transactions'
Millions of dollars
1990
Aug. 8
Aug. 15
Aug. 22
Aug. 29
Sept. 5
Sept. 12
Sept. 19
Sept. 26
165,104
180,990
142,351
126,730
165,575
110,101
135,753
170,641
175,870
254,307
182,708
103,473
115,514
144,551
109,405
80,974
98,123
131,341
105,121
50,396
60,166
146,503
100,355
52,945
52,514
99,855
82,269
36,014
32,046
131,682
103,290
47,860
57,216
144,204
115,933
51,471
55,014
169,377
118,763
44,935
53,796
July
Aug.
Sept
Aug. 1
135,618
150,589
153,579
IMMEDIATE TRANSACTIONS^
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
By type of security
U.S. government securities
Bills
Coupon securities
Maturing in less than 3.5 years
Maturing in 3.5 to 7.5 years . . .
Maturing in 7.5 to 15 years
Maturing in 15 years or more . .
Federal agency securities
Debt
Maturing in less than 3.5 years
Maturing in 3.5 to 7.5 years . . .
Maturing in 7.5 years or more .
Mortgage-backed
Pass-throughs
All others 3
By type of counterparty
Primary dealers and brokers
U.S. government securities
Federal agency
Debt securities
Mortgage backed securities
Customers
U.S. government securities
Federal agency
Debt securities
Mortgage-backed securities
124,839
119,918
45,979
69,519
162,366
120,685
67,972
76,686
143,274
47,187
53,050
151,200
123,264
52,395
68,094
22,963
3,382
5,019
19,543
2,772
3,894
21,755
2,197
2,569
28,705
2,877
3,793
18,522
3,483
4,451
16,011
3,303
4,372
17,029
2,788
3,673
22,775
2,087
3,761
24,547
1,289
2,246
16,962
2,482
2,933
21,489
2,751
2,314
22,578
1,798
2,215
35,119
7,323
34,383
6,981
44,740
5,581
42,700
9,407
32,996
7,954
33,747
6,791
36,272
7,184
36,023
6,544
26,455
4,391
42,756
6,033
45,890
7,145
51,253
3,884
309,875
10,909
20,070
360,883
8,240
19,094'
322,125
8,550
24,845
348,483
11,138
25,175
539,401
8,761
17,640
353,942
8,265
17,576
299,091
6,746
21,023
307,981
8,551
20,579
224,871
8,388
14,947
308,573
8,033
25,319
338,057
8,577
21,456
356,053
7,881
29,929
185,997
20,455
22,372
217,415
17,969
22,269 r
186,234
17,970
25,476
211,574
24,237
26,932
297,591
17,695
23,310
221,462
15,421
22,962
174,663
16,744
22,433
209,911
20,072
21,988
135,414
19,694
15,899
167,228
14,344
23,470
199,206
17,977
31,579
206,688
18,710
25,208
14,786
22,713'
20,912
18,743
40,631'
14,016
20,133
21,121
12,073
21,439
26,281
19,782
6,441
3,078
4,140
30,248
8,400
3,405
6,829
50,828'
5,852
2,227
4,498
37,658
7,380
1,738
3,886
33,704
12,096
4,284
10,686
72,132'
7,893
2,633
6,898
54,946
6,399
2,984
5,654
45,455
9,282
4,476
6,031
43,631
3,730
2,341
3,417
27,260
5,662
1,149
4,964
40,521
6,210
2,709
5,068
40,188
6,209
1,968
3,449
34,328
452
163
775
236
287'
102
151
565
223
101
331
155
48
162
95
437
928
154
108
92
104
447
60
70
59
31
40
83
1,202
36
198
836
113
228
127
419
37,292
4,847
32,094
6,469
42,653
9,843
55,723
7,594
43,127
7,553
38,132
5,358
19,787
3,959
37,102
4,508
46,035
6,383
39,457
2,552
111,268
FUTURE AND FORWARD
TRANSACTIONS
By type of deliverable
security
U.S. government securities
17 Bills
Coupon securities
18
Maturing in less than 3.5 years
19
Maturing in 3.5 to 7.5 years . . .
20
Maturing in 7.5 to 15 years
21
Maturing in 15 years or m o r e . .
Federal agency securities
Debt
22
Maturing in less than 3.5 years
23
Maturing in 3.5 to 7.5 years . . .
24
Maturing in 7.5 years or more .
Mortgage-backed
25
Pass-throughs
26
All others
40,660
7,332
42,167
7,223
OPTION TRANSACTIONS 6
By type of underlying securities
U.S. government securities
27 Bills
Coupon securities
28
Maturing in less than 3.5 years
29
Maturing in 3.5 to 7.5 years . . .
30
Maturing in 7.5 to 15 years
31
Maturing in 15 years or m o r e . .
Federal agency securities
Debt
32
Maturing in less than 3.5 years
33
Maturing in 3.5 to 7.5 years . . .
34
Maturing in 7.5 years or more .
Mortgage-backed
35
Pass-throughs
36
All others
26
1,978
1,665
954
8,099
55'
3,393'
1,446'
1,550
14,228'
17
0
0
4,660
1,476
909
9,293
2,675
1,956
1,051
10,047
3,347
2,983
16,422
15
6
11
0
0
0
35
2,394
0
2,600
0
1,875
34
2,183
0
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. Immediate, forward, and future transactions
are reported at principal value, which does not include accrued interest; option
transactions are reported at the face value of the underlying securities.
2. Transactions for immediate delivery include purchases or sales of securities
(other than mortgage-backed agency securities) for which delivery is scheduled in
five business days or less and "when-issued" securities that settle on the issue
date of offering. Transactions for immediate delivery of mortgage-backed securities
include purchases and sales for which delivery is scheduled in thirty days or less.
Stripped securities are reported at market value by maturity of coupon or corpus.
2,111
1
3,255
748
1,666
13,568
0
0
250
0
0
0
0
3,365
866
1,549
13,968
3,811
934
1,175
16,332
3,235
3,063
1,818
923
1,048
7,871
968
10,591
5,280
1,943
340
7,615
6,108
1,335
1,342
9,959
0
0
40
1
0
0
33
25
2,949
118
1,676
0
0
0
0
50
80
0
0
80
3,162
3,409
2,745
1,802
1,014
0
0
0
0
0
0
50
0
0
0
1,729
10
3. Includes securities such as CMOs, REMICs; IOs, and POs.
4. Futures transactions are standardized agreements arranged on an exchange.
Forward transactions are agreements made in the over-the-counter market that
specify delayed delivery. All futures transactions are included regardless of time
to delivery. Forward contracts for U.S. government securities and federal agency
debt securities are included when the time to delivery is more than five days.
Forward contracts for mortgage-backed securities are included when the time to
delivery is more than thirty days.
5. Options transactions are purchases or sales of put and call options, whether
arranged on an organized exchange or in the over-the-counter market and include
options on futures contracts on U.S. government and federal agency securities.
A32
Domestic Financial Statistics • December 1990
1.43 U.S. GOVERNMENT SECURITIES DEALERS
Positions and Financing1
Millions of dollars
1990
1990
Item
July
Aug.
Sept.
Aug. 1
Aug. 8
Aug. 15
Aug. 22
Aug. 29
Sept. 5
Sept. 12
Sept. 19
Sept. 26
Positions2
NET IMMEDIATE3
By type of security
U.S. government securities
1 Bills
Coupon securities
2
Maturing in less than 3.5 years
3 Maturing in 3.5 to 7.5 years
4 Maturing in 7.5 to 15 years
5 Maturing in 15 years or more
Federal agency securities
Debt
6
Maturing in less than 3.5 years
7
Maturing in 3.5 to 7.5 years
8 Maturing in 7.5 years or more
Mortgage-backed
9 Pass-throughs
10 All others
Other money market instruments
11 Certificates of deposit
12 Commercial paper
13 Bankers'acceptances
3,032
6,815
0
6,610
6,517
9,520
6,587
4,975
5,733
7,840
1,870
2,183
3,183
3,781
-6,018
-10,969
5,395
-2,645
-5,740
-12,241
0
0
0
0
5,050
466
-7,117
-10,051
7,415
-1,681
-4,837
-12,406
6,879
-3,352
-5,312
-10,398
1,538
-4,255
-5,178
-12,494
6,286
-1,683
-7,079
-13,375
3,685
-2,829
-6,987
-14,352
1,513
-4,903
-7,016
-14,161
-3,123
-6,286
-6,780
-14,008
-1,919
-5,421
-8,039
-14,317
3,166
1,446
2,899
4,136
1,422
2,396
0
0
0
4,175
1,403
3,098
4,837
1,235
2,690
4,828
1,080
2,535
3,447
1,545
1,947
3,849
1,723
2,342
2,661
1,799
2,292
3,388
1,908
2,428
4,597
1,907
1,911
5,020
1,632
1,662
17,146
0
16,696
0
0
0
19,612
0
19,038
0
19,894
0
15,815
0
12,592
0
13,296
0
18,592
0
19,930
0
14,360
0
2,877
6,146
1,030
3,129
7,489
1,193
0
0
0
3,761
7,375
994
3,436
9,049
1,169
2,795
7,846
1,508
2,879
5,984
1,133
3,180
6,541
1,002
3,600
9,425
1,148
2,773
7,934
946
2,572
6,674
1,219
2,903
5,638
605
-8,317
-15,495
0
-13,051
-18,829
-18,715
-15,794
-10,246
-11,096
-10,398
-12,907
-12,482
-771
-1,909
-798
-5,098
-616
-1,728
327
-2,405
0
0
0
0
-16
-2,078
-769
-6,006
-551
-2,465
143
-3,406
-680
-1,865
137
-2,508
-678
-1,116
668
-1,621
-578
-1,659
565
-1,928
-834
-878
159
-1,152
-71
-888
-50
91
-468
-1,540
481
801
-678
-1,822
588
948
-69
-104
162
167
71
-52
0
0
0
-99
-126
-17
45
-17
-42
148
282
-139
115
-2
6
397
70
-47
177
5
-21
174
194
-9
113
68
18
73
29
287
-11,755
0
-7,823
0
0
0
-11,658
0
-8,732
0
-11,313
0
-6,190
0
-5,320
0
- 4 , 9 8 9 -10,152 -11,365
0
0
0
-5,536
0
35,615
0
0
47,770
-3
0
0
0
0
29,540
0
0
43,378
0
0
33,875
0
0
63,054
0
0
55,075
-13
0
41,825
0
0
52,817
0
0
50,326
0
0
68,577
0
0
FUTURE AND FORWARD5
By type of deliverable security
U.S. government securities
14 Bills
Coupon securities
15 Maturing in less than 3.5 years
16 Maturing in 3.5 to 7.5 years
17 Maturing in 7.5 to 15 years
18 Maturing in 15 years or more
Federal agency securities
Debt
19 Maturing in less than 3.5 years
20 Maturing in 3.5 to 7.5 years
21
Maturing in 7.5 years or more
Mortgage-backed
22 Pass-throughs
23 All others
Other money market instruments
24 Certificates of deposit
25 Commercial paper
26 Bankers' acceptances
Financing6
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Reverse repurchase agreements
Overnight and continuing
Term
Reverse repurchase agreements
Overnight and continuing
Term
Securities borrowed
Overnight and continuing
Term
Securities lent
Overnight and continuing
Term
Collateralized loans
Overnight and continuing
Term
MEMO: Matched book7
Reverse repurchases
Overnight and continuing
Term
Repurchases
Overnight and continuing
Term
148,001
217,735
157,064
229,319
0
0
158,942
231,348
153,860
250,444
161,066
212,011
160,550
224,848
152,563
234,528
156,881
212,367
154,733
220,311
167,521
222,602
149,268
225,741
223,111
179,589
234,871
189,849
0
0
232,171
189,706
233,845
210,937
241,163
177,140
237,704
184,504
225,955
193,893
239,080
165,155
230,982
173,862
248,020
178,720
222,741
180,331
42,585
13,238
45,459
13,685
0
0
45,126
12,902
43,148
13,036
42,080
12,394
47,678
13,838
47,948
14,973
49,055
15,820
49,227
16,703
49,383
17,988
53,214
20,704
19,830
1,290
19,406
480
0
0
18,843
807
18,518
539
18,220
335
19,650
829
20,810
203
21,184
362
21,825
566
22,504
1,055
24,558
2,490
4,503
824
5,058
691
0
0
4,839
394
5,918
249
4,119
1,580
5,000
503
4,369
461
8,051
737
4,203
1,197
4,893
836
3,342
757
92,712
177,648
100,242
184,789
0
0
102,235
190,108
99,169
204,184
101,014
167,985
105,318
180,166
95,007
189,082
100,852
174,209
100,590
180,126
108,545
179,354
95,866
181,130
124,806
139,661
131,250
148,876
0
0
134,759
152,319
129,610
170,604
127,391
135,251
137,781
144,808
127,388
149,716
139,395
130,087
137,282
137,627
143,847
142,581
126,605
141,782
1. Data for positions and financing are obtained from reports submitted to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers. Data for positions and financing are averages
of close-of- business Wednesday weekly data.
2. Securities positions are reported at market value.
3. Net immediate positions include securities purchased or sold (other than
mortgage-backed agency securities) that have been delivered or are scheduled to
be delivered in five business days or less and "when-issued" securities settle on
the issue date of offering. Net immediate positions of mortgage-backed securities
include securities purchased or sold that have been delivered or are scheduled to
be delivered in thirty days or less.
4. Includes securities such as CMOs, REMICs, IOs, and POs.
5. Futures positions are standardized contracts arranged on an exchange.
Forward positions reflect agreements made in the over-the-counter market that
specify delayed delivery. All futures positions are included regardless of time to
delivery. Forward contracts for U.S. government securities and for federal
agency debt securities are included when the time to delivery is more than five
business days. Forward contracts for mortgage-backed securities are included
when the time to delivery is more than thirty days.
6. Overnight financing refers to agreements made on one business day that
mature on the next business day; continuing contracts are agreements that remain
in effect for more than one business day but have no specific maturity and can be
terminated without a requirement for advance notice by either party; term
agreements have a fixed maturity of more than one business day.
7. Matched-book data reflect financial intermediation activity in which the
borrowing and lending transactions are matched. Matched-book data are included
in the financing breakdowns listed above. The reverse repurchase and repurchase
numbers are not always equal due to the "matching" of securities of different
values or types of collateralization.
Federal Finance
1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
A33
Debt Outstanding
Millions of dollars, end of period
1990
1986
Agency
1987
1988
1989
Apr.
May
June
July
Aug.
307,361
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 Corporation10
17
Farm Credit Financial Assistance Corporation
18 Resolution Funding Corporation
341,386
381,498
411,805
423,481
424,082
422,261
0
0
36,958
33
14,211
138
37,981
13
11,978
183
35,668
8
11,033
150
35,664
7
10,985
328
42,526
7
11,017
352
42,482
7
11,017
365
42,015
7
11,150
394
41,978
7
11,150
281
42,323
7
11,150
316
2,165
3,104
17,222
85
1,615
6,103
18,089
0
0
6,142
18,335
0
0
6,445
17,899
0
0
6,445
24,705
0
0
6,148
24,945
0
0
6,148
24,316
0
0
6,148
24,392
0
0
6,948
23,902
0
270,553
88,758
13,589
93,563
62,478
12,171
0
0
0
303,405
115,727
17,645
97,057
55,275
16,503
1,200
0
0
345,830
135,836
22,797
105,459
53,127
22,073
5,850
690
0
375,407
136,087
26,148
116,064
54,864
28,705
8,170
847
4,522
380,955
127,401
28,789
117,357
53,700
31,664
8,170
847
13,026
381,600
125,515
30,444
118,108
53,795
31,696
8,170
847
13,026
380,245
123,021
31,049
117,964
53,451
32,392
8,170
1,172
13,026
0
119,692
27,716
118,356
53,175
32,218
8,170
1,172
18,052
0
118,380
27,589
119,248
54,015
32,605
8,170
1,172
18,052
157,510
1 Federal and federally sponsored agencies
2 Federal agencies
3
Defense Department1
4
Export-Import Bank 2,3
Federal Housing Administration
5
6
Government National Mortgage Association participation
certificates
7
Postal Service6
8
Tennessee Valley Authority
United States Railway Association6
9
152,417
142,850
134,873
136,957
141,536
157,685
162,443
166,017
14,205
2,854
4,970
15,797
85
11,972
5,853
4,940
16,709
0
11,027
5,892
4,910
16,955
0
10,979
6,195
4,880
16,519
0
11,011
6,195
4,880
15,325
0
11,011
5,898
4,880
15,565
0
11,144
5,898
4,880
14,936
0
11,144
5,898
4,880
15,012
0
11,144
6,698
4,880
14,522
0
65,374
21,680
32,545
59,674
21,191
32,078
58,496
19,246
26,324
53,311
19,265
23,724
51,916
19,191
28,439
51,591
19,182
33,409
51,901
19,168
49,758
52,171
19,066
54,272
52,211
19,043
57,519
MEMO
19 Federal Financing Bank debt13
20
21
22
23
24
Lending to federal and federally sponsored
Export-Import Bank
Postal Service6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association6
Other Lending14
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other
agencies
1. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1,1976.
3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
5. Certificates of participation issued before fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing
and Urban Development; Small Business Administration; and the Veterans
Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Some data are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation,
shown in line 17.
9. Before late 1981, the Association obtained financing through the Federal
Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is
shown on line 21.
10. The Financing Corporation, established in August 1987 to recapitalize the
Federal Savings and Loan Insurance Corporation, undertook its first borrowing in
October 1987.
11. The Farm Credit Financial Assistance Corporation (established in January
1988 to provide assistance to the Farm Credit System) undertook its first
borrowing in July 1988.
12. The Resolution Funding Corporation, established by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, undertook its first
borrowing in October 1989.
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.
14. 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.
A34
1.45
DomesticNonfinancialStatistics • December 1990
N E W SECURITY I S S U E S
Tax-Exempt State and Local Governments
Millions of dollars
1990
Type of issue or issuer,
or use
1987
1988
1989
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
102,407
114,522
113,646
6,329
9,880
8,582
12,032
13,625
8,731
10,035
13,930
Type of issue
2 General obligation
3 Revenue
30,589
71,818
30,312
84,210
35,774
77,873
3,010
3,319
3,199
6,681
3,386
5,1%
3,166
8,866
4,426
9,199
2,847
5,884
3,358
6,677
3,763
10,167
Type of issuer
4 State
5 Special district and statutory authority
6 Municipalities, counties, and townships
10,102
65,460
26,845
8,830
74,409
31,193
11,819
71,022
30,805
1,196
3,277
1,856
707
6,247
2,926
1,387
4,366
2,243
1,003
7,485
3,544
1,090
8,556
3,977
1,442
5,670
1,742
1,610
6,692
2,195
2,317
8,188
3,425
7 Issues for new capital, total
56,789
79,665
84,062
5,635
6,667
7,744
10,486
10,974
7,442
9,346
12,713
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
9,524
3,677
7,912
11,106
7,474
18,020
15,021
6,825
8,496
19,027
5,624
24,672
15,133
6,870
11,427
16,703
5,036
28,894
1,420
511
718
432
115
2,439
1,018
1,158
502
1,425
432
2,132
1,054
1,215
991
2,664
232
2,426
1,694
1,375
1,232
2,628
681
2,155
2,612
1,592
2,159
2,199
693
4,366
2,212
789
719
2,012
434
2,688
1,389
931
1,015
3,508
495
3,161
1,472
920
687
3,995
674
4,965
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
N E W SECURITY I S S U E S
SOURCES, investment Dealer's Digest beginning April 1990. Securities Data/
Bond Buyer Municipal Data Base beginning 1986. Public Securities Association
for earlier data.
U . S . Corporations
Millions of dollars
1990
Type of issue or issuer,
or use
1987
1988
1989
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
1 All issues'
392,674
410,811
376,488
15,144
13,811
21,199
15,346'
25,164'
28,893'
19,868'
14,008
2 Bonds2
326,166
353,010
318,617
12,866
10,892
17,405
13,590'
22,813'
26,020'
17,621'
13,200
Type of offering
3 Public, domestic
4 Private placement, domestic
5. Sold abroad
209,790
92,070
24,306
202,132
127,700
23,178
181,230
114,629
22,758
10,814
n.a.
2,052
9,985
n.a.
907
15,498
n.a.
1,907
12,669'
n.a.
921
19,663'
n.a.
3,150
22,809'
n.a.
3,211
14,316'
n.a.
3,305'
12,000
n.a.
1,200
60,657
49,773
11,974
23,004
7,340
173,418
70,574
62,104
10,075
19,318
5,952
184,990
76,345
49,307
10,050
17,056
8,503
157,355
2,036
655
35
1,043
23
9,075
2,488
157
53
1,057
35
7,103
3,3%
263
386
317
704
12,340
3,612'
683
194
435
500
8,167
2,540
1,171
927
1,004
326
16,840
3,729
2,999
1,001
2,561
411
15,3^
1,545
1,642
270
655
113
13,3%'
404
215
500
708
15
11,358
12 Stocks2
66,508
57,802
57,870
2,278
2,919
3,794
1,756
2,351
2,873
2,247
808
Type
13 Preferred
14 Common
15 Private placement 3
10,123
43,225
13,157
6,544
35,911
15,346
6,194
26,030
25,647
50
2,228
n.a.
167
2,752
n.a.
1,028
2,767
n.a.
193
1,564
n.a.
665
1,686
n.a.
310
2,563'
n.a.
350
1,897
n.a.
145
663
n.a.
13,880
12,888
2,439
4,322
1,458
31,521
7,608
8,449
1,535
1,898
515
37,798
9,308
7,611
1,929
3,090
1,904
34,028
835
125'
0
106
0
1,213'
431
952'
0
582
0
954'
521
552
0
533
0
2,188
253
666
0
219
0
619
86
706
22
471
380
686
265
748'
21
0
29
1,799
348
507
0
173
0
862
125
251
71
139
0
218
6
7
8
9
10
11
16
17
18
19
20
21
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures which represent gross proceeds of issues maturing in more than one
year, are principal amount or number of units multiplied by offering price.
Excludes secondary offerings, employee stock plans, investment companies other
than closed-end, intracorporate transactions, equities sold abroad, and Yankee
bonds. Stock data include ownership securities issued by limited partnerships.
2. Monthly data include only public offerings.
3. Data are not available on a monthly basis. Before 1987, annual totals include
underwritten issues only.
SOURCES. IDD Information Services, Inc., the Board of Governors of the
Federal Reserve System, and before 1989, the U.S. Securities and Exchange
Commission.
Securities Market and Corporate Finance
1.47
O P E N - E N D I N V E S T M E N T COMPANIES
A35
N e t Sales and Asset Position
Millions of dollars
1990
Item
1988
1989
Jan.
Feb.
Mar.
Apr.
May
June
July'
Aug.
INVESTMENT COMPANIES'
1 Sales of own shares2
271,237
306,445
35,620
26,118
28,817
29,788
27,431
28,301
29,444
29,227
2 Redemptions of own shares 3
3 Net sales
267,451
3,786
272,165
34,280
27,331
8,289
20,978
5,140
23,777
5,040
27,306
2,482
23,337
4,094
23,340
4,961
22,933
6,511
24,837
4,390
4 Assets4
472,297
553,871
535,165
542,725
549,638
542,061
574,302
582,190
586,526
554,722
45,090
427,207
44,780
509,091
48,865
486,300
51,356
491,369
50,454
499,184
55,213
486,848
52,741
521,560
49,861
532,329
48,944
537,582
51,103
503,619
5 Cash position
6 Other
5
4. Market value at end of period, less current liabilities.
5. Also includes all U.S. government securities and other short-term debt
securities.
NOTE. Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the
Securities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.
1. Data on sales and redemptions exclude money market mutual funds but
include limited maturity municipal bond funds. Data on asset positions exclude
both money market mutual funds and limited maturity municipal bond funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment of capital gains distributions and share issue of conversions from one fund
to another in the same group.
3. Excludes share redemption resulting from conversions from one fund to
another in the same group.
1.48
CORPORATE PROFITS A N D THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1988
Account
1987
1988
1989
1990
1989
Q3
Q4
Ql
Q2
Q3
Q4
Ql
Q2
2
3
4
5
6
1 Corporate profits with inventory valuation and
capital consumption adjustment
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
308.3
275.3
126.9
148.4
98.2
50.2
337.6
316.7
136.2
180.5
110.0
70.5
311.6
307.7
135.1
172.6
123.5
49.1
334.4
320.4
137.9
182.5
111.8
70.8
349.6
331.1
142.1
189.1
115.3
73.8
327.3
335.1
148.3
186.7
119.1
67.6
321.4
314.6
140.8
173.8
122.1
51.7
306.7
291.4
127.8
163.6
125.0
38.6
290.9
289.8
123.5
166.3
127.7
38.6
296.8
296.9
129.9
167.1
130.3
36.8
306.6
299.3
133.1
166.1
133.0
33.2
7 Inventory valuation
8 Capital consumption adjustment
-19.4
52.4
-27.0
47.8
-21.7
25.5
-33.3
47.3
-22.5
40.9
-43.0
35.2
-23.1
29.9
-6.1
21.4
-14.5
15.6
-11.4
11.3
-.5
7.7
Source. Survey of Current Business (Department of Commerce).
1.50
T O T A L N O N F A R M B U S I N E S S E X P E N D I T U R E S on N e w Plant and Equipment A
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1989
Industry
1988
1989
1990
1990
Ql
1 Total nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5
Railroad
6
Air
7
Other
Public utilities
8
Electric
9
Gas and other
10 Commercial and other 2
Q3
Q4
Ql
Q2
Q3
Q4
455.49
507.40
534.76
487.43
502.05
514.95
519.58
532.45
535.49
532.47
538.61
77.04
86.41
82.56
101.24
84.69
107.75
80.20
92.53
82.44
98.47
83.60
102.40
83.41
108.47
86.35
105.02
84.34
110.82
83.63
108.74
84.45
106.42
9.29
9.21
9.96
8.94
9.24
9.24
9.38
9.58
9.84
10.23
10.19
5.52
5.63
5.48
6.26
6.73
5.85
5.89
9.09
6.13
6.02
5.67
6.15
5.81
6.84
5.78
6.36
8.89
5.78
6.80
5.75
5.69
6.45
9.35
6.33
6.66
9.36
5.84
5.34
9.77
5.50
5.10
7.88
6.83
40.90
19.47
205.76
44.81
21.47
229.28
43.79
22.12
245.34
43.56
22.53
221.82
46.37
21.72
225.39
44.44
20.75
233.50
44.66
21.15
234.25
43.37
22.34
243.66
42.62
21.65
244.37
43.85
22.35
243.05
45.33
22.13
250.27
ATrade and services are no longer being reported separately. They are included
in Commercial and other, line 10.
1. Anticipated by business.
Q2
2. "Other" consists of construction; wholesale and retail trade; finance and
insurance; personal and business services; and communication.
SOURCE. Survey of Current Business (Department of Commerce).
A36
1.51
DomesticNonfinancialStatistics • December 1990
DOMESTIC F I N A N C E COMPANIES
Assets and Liabilities'
Billions of dollars, end of period
1988
Account
1985
1989
1990
1987
1986
Q4
QL
Q2
Q3
Q4
QL
Q2
ASSETS
Accounts receivable, gross 2
Consumer
Business
Real estate
Total
111.9
157.5
28.0
297.4
134.7
173.4
32.6
340.6
141.1
207.4
39.5
388.1
146.2
236.5
43.5
426.2
139.1
243.3
45.1
427.5
143.9
250.9
47.1
441.9
146.3
246.8
48.7
441.8
140.8
256.0
48.9
445.8
137.9
262.9
52.1
452.8
138.6
274.8
55.4
468.8
Less:
5 Reserves for unearned income
6 Reserves for losses
39.2
4.9
41.5
5.8
45.3
6.8
50.0
7.3
51.0
7.4
52.2
7.5
52.9
7.7
52.0
7.7
51.9
7.9
54.3
8.2
7 Accounts receivable, net
8 All other
253.3
45.3
293.3
58.6
336.0
58.3
368.9
72.4
369.2
75.1
382.2
81.4
381.3
85.2
386.1
91.6
393.0
92.5
406.3
95.5
9 Total assets
298.6
351.9
394.2
441.3
444.3
463.6
466.4
477.6
485.5
501.9
18.0
99.2
18.6
117.8
16.4
128.4
15.4
142.0
11.3
147.8
12.1
149.0
12.2
147.2
14.5
149.5
13.9
152.9
15.8
152.4
12.7
94.4
n.a.
n.a.
41.5
32.8
17.5
117.5
n.a.
n.a.
44.1
36.4
28.0
137.1
n.a.
n.a.
52.8
31.5
n.a.
n.a.
50.6
137.9
59.8
35.6
n.a.
n.a.
56.9
133.6
58.1
36.6
n.a.
n.a.
59.8
140.5
63.5
38.8
n.a.
n.a.
60.3
145.1
61.8
39.8
n.a.
n.a.
63.8
147.8
62.6
39.4
n.a.
n.a.
70.5
145.7
61.7
40.7
n.a.
n.a.
72.8
153.0
66.1
41.8
298.6
351.9
394.2
441.3
444.3
463.6
466.4
477.6
485.5
501.9
1
2
3
4
LIABILITIES
10 Bank loans
11 Commercial paper
Debt
12 Other short-term
13 Long-term
14 Due to parent
15 Not elsewhere classified
16 All other liabilities
17 Capital, surplus, and undivided profits
18 Total liabilities and capital
1. Components may not add to totals because of rounding.
1.52
DOMESTIC F I N A N C E COMPANIES
2. Excludes pools of securitized assets.
Business Credit Outstanding and N e t Change'
Millions of dollars, seasonally adjusted
1990
type
Mar.
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 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
Apr.
May
June
July
Aug.
205,992
234,578
258,504
261,662
262,379
266,859
273,786
277,616'
283,043
36,139
25,075
n.a.
36,957
28,199
n.a.
39,139
29,674
698
39,264
29,789
704
39,550
30,115
662
39,245
30,635
622
39,716
30,491
642
38,931
30,623
800'
38,610
30,707
987
30,070
5,578
8,329
n.a.
32,357
5,954
9,312
n.a.
33,074
6,896
9,918
0
29,963
9,408
10,030
0
29,672
9,372
9,961
0
29,896
9,429
9,892
0
31,815
9,495
10,043
0
33,158
9,929
9,722
0
34,429
9,812
9,707
650
22,097
43,493
n.a.
24,875
57,658
n.a.
27,074
68,112
1,247
28,325
68,755
1,433
28,528
69,473
1,646
28,878
72,715
1,597
29,575
74,916
1,547
30,210
76,316
1,760
30,942
78,714
1,703
18,170
17,042
18,103
21,162
19,081
23,590
19,426
24,565
18,716
24,685
18,700
25,250
19,869
25,677
20,077
26,089
19,974
26,809
Net change (during period)
33,866
14
15
16
17
18
19
20
21
22
23
24
25
26
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
Loans on commercial accounts receivable and factored
commercial accounts receivable
All other business credit
22,434
22,580
2,647
717
4,480
6,927
3,830'
5,427
9,925
2,056
n.a.
819
1,386
n.a.
2,182
1,475
-26
140
306
23
286
327
-42
-305
520
-40
471
-144
20
-785
132
158'
-321
84
187
7,158
250
1,293
n.a.
2,288
377
983
n.a.
716
940
605
0
472
254
153
0
-291
-37
-69
0
224
57
-69
0
1,919
67
151
0
1,343
434
-321
0
1,271
-118
-16
650
2,174
5,271
n.a.
2,777
9,752
n.a.
2,201
9,187
526
1,164
-580
56
203
718
213
351
3,243
-49
696
2,201
-50
636
1,400
213
731
2,398
-57
2,245
3,498
-65
4,119
979
3,796
272
388
-711
120
-16
565
1,169
427
208
412
-103
721
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
1.53
A37
MORTGAGE M A R K E T S
Millions of dollars; exceptions noted.
1990
Item
1987
1988
1989
Mar.
Apr.
May
June
July
Aug.
Sept.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
6
Conventional mortgages on new homes
Terms1
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan/price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)
Contract rate (percent per year)
Yield (percent per year)
7 OTS series 3
8 HUD series 4
137.0
100.5
75.2
27.8
2.26
8.94
150.0
110.5
75.5
28.0
2.19
8.81
159.6
117.0
74.5
28.1
2.06
9.76
138.2
100.9
74.7
26.6
1.96
9.70
155.5
114.6
75.4
26.6
2.00
9.83
162.1
119.7
75.0
28.1
2.41
9.87
149.8
111.8
76.4
26.9
1.96
9.80
163.5
120.9
75.3
28.0
1.93
9.75
161.5
118.3
74.5
27.2
2.07
9.75
156.6
114.8
74.7
27.2
1.78
9.60
9.31
10.17
9.18
10.30
10.11
10.21
10.03
10.20
10.17
10.46
10.28
10.19
10.13
10.12
10.08
9.94
10.11
10.12
9.90
10.18
10.16
9.44
10.49
9.83
10.24
9.71
10.30
9.53
10.75
9.77
10.23
9.77
10.18
9.54
10.11
9.48
10.28
9.63
10.24
9.65
SECONDARY MARKETS
Yield (percent per year)
9 FHA mortgages (HUD series) 5
10 GNMA securities 6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12 FHA/VA-insured
13 Conventional
95,030
21,660
73,370
101,329
19,762
81,567
104,974
19,640
85,335
112,353
20,688
91,665
112,463
20,707
91,756
112,791
20,723
92,068
112,855
20,830
92,025
113,378
21,059
92,319
113,507
21,101
92,406
113,718
21,364
92,354
Mortgage transactions (during period)
14 Purchases
20,531
23,110
22,518
1,945
1,705
1,630
1,802
2,304
2,134
2,123
n.a.
n.a.
n.a.
n.a.
1,754
398
1,568
518
1,960
534
2,089
853
2,215
874
2,302
761
2,073
644
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Mortgage
commitments7
15 Issued (during period) 8
16 To sell (during period) 9
n.a.
n.a.
FEDERAL HOME LOAN MORTGAGE CORPORATION
Mortgage holdings (end of period)9
17 Total
18 FHA/VA
19 Conventional
12,802
686
12,116
15,105
620
14,485
20,105
590
19,516
19,823
561
19,261
19,730
555
19,174
19,874
556
19,319
19,979
550
19,429
20,127
546
19,581
Mortgage transactions (during period)
20 Purchases
21 Sales
76,845
75,082
44,077
39,780
78,588
73,446
6,301
6,503
5,719
5,687
6,064
5,792
5,856
5,546
4,527
4,248
n.a.
4,705
n.a.
5,266
Mortgage
commitments10
22 Contracted (during period)
71,467
66,026
88,519
6,119
10,441
8,502
11,183
5,851
n.a.
n.a.
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 Associ-
ation 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.
1. 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. Does not include standby commitments issued, but includes standby commitments converted.
9. Includes participation as well as whole loans.
10. 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
1.54
DomesticNonfinancialStatistics • December 1990
MORTGAGE D E B T O U T S T A N D I N G 1
Millions of dollars, end of period
1989
Type of holder, and type of property
1987
1990
1989
Q2
Q3
Q4
Ql
Q2
1 All holders
2,971,019
3,264,348
3,540,084
3,402,082
3,473,550
3,540,084
3,601,132
3,657,741
2
3
4
5
1,958,400
272,500
651,323
88,797
2,186,292
289,128
702,113
2,404,311
305,582
744,856
85,336
2,287,645
299,449
728,212
86,777
2,347,566
302,374
737,299
86,311
2,404,311
305,582
744,856
85,336
2,450,291
310,273
755,857
84,710
2,492,784
314,360
765,489
85,109
1,657,937
592,449
275,613
32,756
269,648
14,432
1,826,668
669,237
317,585
33,158
302,989
15,505
1,919,243
763,533
368,567
37,990
340,285
16,691
1,891,210
715,262
338,799
36,022
324,083
16,358
1,913,914
742,0%
355,084
37,201
333,272
16,539
1,919,243
763,533
368,567
37,990
340,285
16,691
1,924,635
783,100
376,616
39,202
350,473
16,809
1,924,617
803,660
388,018
40,271
358,367
17,003
860,467
602,408
106,359
150,943
757
205,021
12,676
21,644
160,874
9,828
29,716
924,606
671,722
110,775
141,433
676
232,825
15,299
23,583
184,273
9.671
37,846
910,254
669,220
106,014
134,370
650
245,456
13,827
27,195
194,871
9,563
45,476
938,714
687,000
110,067
140,977
670
237,234
12,814
25,232
189,623
9,565
41,824
932,373
683,148
108,447
140,0%
682
239,445
13,290
26,372
190,152
9,632
43,157
910,254
669,220
106,014
134,370
650
245,456
13,827
27,195
194,871
9,563
45,476
892,022
658,440
103,860
129,103
619
249,513
14,173
197,621
9,537
45,808
867,640
639,985
101,112
125,944
599
253,317
14,479
29,155
200,139
9,544
47,104
192,721
444
25
419
43,051
18,169
8,044
6,603
10,235
200,570
26
26
0
42,018
18,347
8,513
5,343
9,815
209,472
23
23
0
41,176
18,422
9,054
4,443
9,257
202,056
24
24
0
40,711
18,391
8,778
3,885
9,657
205,809
24
24
209,472
23
23
216,059
22
22
230,511
21
21
41,117
18,405
8,916
4,366
9,430
41,176
18,422
9,054
4,443
9,257
41,125
18,419
9,199
4,510
8,997
41,027
18,433
9,351
4,418
8,826
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
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
6,061
2,850
3,211
110,721
102,295
8,426
29,640
6,023
2,900
3,123
107,052
99,168
7,884
30,943
6,061
2,850
3,211
110,721
102,295
8,426
29,640
1,210
28,430
21,851
18,248
3,603
6,215
2,977
3,291
112,353
103,300
9,053
29,325
1,197
28,430
21,851
18,248
3,603
6,424
2,827
3,597
103,309
95,714
7,595
31,467
1,851
29,616
20,121
17,382
2,739
19,823
16,772
3,051
3,041
3,243
114,592
105,026
9,566
30,517
1,957
28,559
20,126
16,918
3,208
44 Mortgage pools or trusts 6
45
Government National Mortgage Association..
46
1- to 4-family
47
Multifamily
48
Federal Home Loan Mortgage Corporation . .
49
1- to 4-family
50
Multifamily
51
Federal National Mortgage Association
52
1- to 4-family
53
Multifamily
54
Farmers Home Administration
55
1- to 4-family
56
Multifamily
57
Commercial
58
Farm
718,297
317,555
309,806
7,749
212,634
205,977
6,657
139,960
137,988
1,972
245
943,932
369,867
358,142
11,725
272,870
266,060
6,810
228,232
219,577
8,655
80
21
0
26
33
864,885
353,759
342,545
11,214
245,242
238,446
6,7%
1%,501
188,774
7,727
85
23
0
26
36
899,435
361,291
349,838
11,453
257,938
251,232
6,706
208,894
200,302
8,592
82
22
943,932
369,867
358,142
11,725
272,870
266,060
6,810
228,232
219,577
8,655
80
0
63
61
810,887
340,527
331,257
9,270
226,406
219,988
6,418
178,250
172,331
5,919
104
26
0
38
40
21
981,265
378,292
366,300
11,992
281,736
274,084
7,652
246,391
237,916
8,475
75
20
1,011,982
384,289
372,051
12,237
291,863
283,822
8,041
259,664
250,663
9,002
71
18
26
35
26
33
25
31
23
30
59 Individuals and others 7
60
1- to 4-family
61
Multifamily
62
Commercial
63
Farm
402,064
242,053
75,458
63,192
21,361
426,223
258,639
78,663
68,037
20,884
467,438
292,967
82,899
70,861
20,711
443,931
273,757
79,681
69,618
20,875
454,392
283,445
80,689
69,387
20,871
467,438
292,%7
82,899
70,861
20,711
479,172
301,573
84,873
72,136
20,589
490,631
310,747
86,468
72,868
20,548
1- to 4-family
Multifamily
Commercial
Farm
6 Selected financial institutions
7
Commercial banks 2
8
1- to 4-family
9
Multifamily
10
Commercial
11
Farm
12
13
14
15
16
17
18
19
20
21
22
Savings institutions 3
1- to 4-family
Multifamily
Commercial
Farm
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
Finance companies
23 Federal and related agencies
24
Government National Mortgage Association..
25
1- to 4-family
26
Multifamily
27
Farmers Home Administration
28
1- to 4-family
29
Multifamily
30
Commercial
31
Farm
32
33
34
35
36
37
38
39
40
41
42
43
121
1. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve. Multifamily debt refers
to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not bank trust
departments.
3. Includes savings banks and savings and loan associations. Beginning 1987:1,
data reported by FSLIC-insured institutions include loans in process and other
contra assets (credit balance accounts that must be subtracted from the corresponding gross asset categories to yield net asset levels).
4. Assumed to be entirely 1- to 4-family loans.
86,816
1,210
0
1,821
29,122
20,650
17,659
2,992
0
0
0
28,182
0
28,128
0
0
0
5. Fanners Home Administration-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 F a n n e r s 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
1.55
A39
C O N S U M E R I N S T A L L M E N T CREDIT 1 Total Outstanding, and N e t Change, seasonally adjusted
Millions of dollars, amounts outstanding, end of period
1989
Holder, and type of credit
1988
1990
1989
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Seasonally adjusted
1 Total
664,701
716,624
716,624
717,829
717,869
720,445
720,835
724,485
724,601
729,32y
731,416
2
3
4
5
284,556
174,057
25,201
180,887
290,770
197,110
22,343
206,401
290,770
197,110
22,343
206,401
290,904
199,146
22,604
205,175
289,629
199,927
22,633
205,680
290,932
202,263
22,708
204,543
288,936
203,965
22,702
205,232
288,931
207,153
22,815
205,585
287,168
208,362
22,733
206,338
286,791'
212,138'
22,795'
207,605'
285,050
213,916
23,003
209,446
Automobile
Revolving
Mobile home
Other
Not seasonally adjusted
6 Total
674,719
727,561
727,561
721,026
717,062
713,138
715,801
720,045
722,953
727,196'
733,543
343,865
140,832
90,875
42,638
57,228
3,935
48,188
343,865
140,832
90,875
42,638
57,228
3,935
48,188
342,266
140,740
90,452
39,959
55,425
4,013
48,171
339,418
139,115
90,127
37,904
54,771
3,803
51,924
334,645
137,857
89,556
37,302
54,095
3,792
55,891
337,576
138,174
89,689
37,207
53,606
3,928
55,621
339,328
138,384
89,913
37,347
53,301
4,024
57,748
335,998
138,642
90,137
37,382
52,902
4,192
63,700
339,124'
138,796
90,631'
36,804
52,503
4,396
64,942'
342,641
139,496
91,324
37,231
52,399
4,722
65,730
7
8
9
10
11
12
13
By major holder
Commercial banks
Finance companies
Credit unions
Retailers 2
Savings institutions
Gasoline companies
Pools of securitized assets
..
324,792
146,212
88,340
48,302
63,399
3,674
n.a.
14
15
16
17
By major type of credit3
Automobile
Commercial banks
Finance companies
Pools of securitized assets 2
284,328
123,392
97,245
n.a.
290,421
126,613
82,721
18,191
290,421
126,613
82,721
18,191
288,984
127,075
81,918
17,827
288,036
127,149
80,227
18,931
286,539
126,289
79,523
19,563
286,220
126,483
79,295
19,406
287,140
127,056
78,927
20,151
287,254
126,988
78,273
21,043
287,322
126,986'
77,716
21,692'
n.a.
127,882
77,205
21,515
18 Revolving
19 Commercial banks
20
Retailers
21
Gasoline companies
22
Pools of securitized assets 2
183,909
123,020
43,697
3,674
n.a.
208,188
130,956
37,967
3,935
22,977
208,188
130,956
37,967
3,935
22,977
203,288
128,384
35,359
4,013
23,450
200,147
124,821
33,378
3,803
26,204
199,937
122,024
32,794
3,792
29,542
201,783
124,039
32,721
3,928
29,403
204,854
125,433
32,857
4,024
30,913
206,820
122,116
32,884
4,192
36,076
209,582
124,569'
32,325
4,396
36,786
n.a.
125,987
32,735
4,722
37,601
25,143
9,025
7,191
22,283
9,155
4,716
22,283
9,155
4,716
22,717
9,109
5,411
22,726
9,162
5,410
22,426
9,142
5,178
22,484
9,231
5,168
22,610
9,295
5,224
22,644
9,296
5,266
22,843
9,443
5,328
n.a.
9,569
5,358
181,339
69,355
41,776
4,605
n.a.
206,669
77,141
53,395
4,671
7,020
206,669
77,141
53,395
4,671
7,020
206,037
77,698
53,411
4,600
6,894
206,153
78,286
53,478
4,526
6,789
204,236
77,190
53,156
4,508
6,786
205,314
77,823
53,711
4,486
6,812
205,441
77,544
54,233
4,490
6,684
206,235
77,598
55,103
4,498
6,581
207,186
78,126'
55,752
4,479
6,464
n.a.
79,203
56,933
4,496
6,614
23 Mobile home
24
Commercial banks
25
Finance companies
26 Other
27
Commercial banks
28
Finance companies
29
Retailers
30
Pools of securitized assets 2
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. Outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator.
3. Totals include estimates for certain holders for which only consumer credit
totals are available.
A40
1.56
DomesticNonfinancialStatistics • December 1990
TERMS OF C O N S U M E R I N S T A L L M E N T CREDIT 1
Percent unless noted otherwise
1990
Item
1987
1988
1989
Feb.
Mar.
Apr.
May
June
July
Aug.
INTEREST RATES
1
2
3
4
5
6
Commercial banks 2
48-month new car 3
24-month personal
120-month mobile home 3
Credit card
Auto finance companies
New car
Used car
10.45
14.22
13.38
17.92
10.85
14.68
13.54
17.78
12.07
15.44
14.11
18.02
11.80
15.27
13.91
18.12
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
11.82
15.41
14.09
18.14
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
11.89
15.46
14.09
18.18
10.73
14.60
12.60
15.11
12.62
16.18
12.67
15.91
12.31
15.97
12.21
16.02
12.23
16.03
12.58
16.00
12.68
15.96
12.62
15.98
53.5
45.2
56.2
46.7
54.2
46.6
54.7
46.4
54.3
46.4
54.2
46.5
54.5
46.1
54.8
46.2
54.9
46.2
54.8
46.2
93
98
94
98
91
97
88
96
88
95
87
%
87
96
87
95
86
%
86
%
11,203
7,420
11,663
7,824
12,001
7,954
12,053
8,065
12,216
8,132
12,089
8,105
12,064
8,169
12,108
8,2%
12,125
8,401
11,939
8,415
OTHER TERMS 4
7
8
9
10
11
12
Maturity (months)
New car
Used car
Loan-to-value ratio
New car
Used car
Amount financed (dollars)
New car
Used car
1. These data also appear in the Board's G.19 (421) release. For address, see
inside front cover.
2. Data for midmonth of quarter only.
3. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
4. At auto finance companies. /sll.56-bul-tel/bUql! 53.5 56.2 54.2 54.7 54.7 54.3
54.2 54.5 54.8 54.9 45.2 46.7 46.6 45.5 46.4 46.4 46.5 46.1 46.2 46.2 93 94 91 89 88
88 87 87 87 86 98 98
Flow of Funds
1.57
A41
F U N D S R A I S E D I N U.S. CREDIT MARKETS
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1985
1986
1987
1988
1990
1989
1988
Transaction category, sector
1989
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors
848.1
836.9
687.0
760.8
676.5
694.9
746.7
666.5
673.3
619.5
749.9
598.1
By sector and instrument
2 U.S. government
Treasury securities
Agency issues and mortgages
4
223.6
223.7
-.1
215.0
214.7
.4
144.9
143.4
1.5
157.5
140.0
17.4
150.2
150.0
.2
144.8
103.2
41.6
147.3
148.5
-1.2
100.1
95.0
5.1
168.4
166.8
1.6
185.0
189.6
-4.6
247.6
218.1
29.6
216.7
211.4
5.4
624.5
451.2
135.4
73.5
242.2
156.8
29.8
62.2
-6.6
621.9
465.8
22.7
126.8
316.3
218.7
33.5
73.6
-9.5
542.1
453.2
49.3
79.4
324.5
234.9
24.4
71.6
-6.4
603.3
459.2
49.8
102.9
306.5
231.0
16.7
60.8
-2.1
526.3
379.7
30.4
73.6
275.7
218.0
16.4
42.7
-1.5
550.1
439.0
56.8
87.1
295.1
212.0
19.2
63.9
.0
599.4
412.8
39.7
58.2
314.9
225.5
23.1
68.6
-2.3
566.3
390.1
28.7
86.5
275.0
211.3
21.4
41.5
.9
504.9
369.2
34.1
62.7
272.4
221.0
11.8
40.9
-1.3
434.5
346.8
19.1
87.2
240.5
214.3
9.5
19.9
-3.2
502.3
362.3
13.5
42.3
306.5
238.4
21.5
47.9
-1.4
381.4
284.4
21.6
60.2
202.6
144.1
17.1
42.2
-.8
173.3
82.5
40.6
14.6
35.6
156.1
58.0
66.9
-9.3
40.5
88.9
33.5
10.0
2.3
43.2
144.1
50.2
39.8
11.9
42.2
146.6
39.1
39.9
20.4
47.1
111.1
51.2
22.2
39.0
-1.3
186.6
38.2
55.9
32.3
60.2
176.2
36.9
45.1
39.5
54.7
135.7
37.1
50.8
16.9
30.9
87.7
44.1
7.7
-6.9
42.8
139.9
14.6
21.2
69.7
34.5
97.0
9.8
17.4
-6.0
75.8
5 Private domestic nonfinancial sectors
6 Debt capital instruments
Tax-exempt obligations
7
8
Corporate bonds
9
Mortgages
Home mortgages
10
Multifamily residential
11
Commercial
1?
Farm
13
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
19
20
7.1
77
23
24
25
By borrowing sector
State and local governments
Households
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
624.5
90.9
284.5
249.1
-14.5
129.3
134.3
621.9
36.2
293.0
292.7
-16.3
99.2
209.7
542.1
48.8
302.2
191.0
-10.6
77.9
123.7
603.3
45.6
314.9
242.8
-7.5
65.7
184.6
526.3
29.6
284.8
211.9
1.6
50.8
159.5
550.1
53.0
288.5
208.6
-14.5
57.3
165.8
599.4
40.1
293.2
266.0
4.7
71.0
190.3
566.3
33.3
263.7
269.4
-5.0
56.9
217.4
504.9
28.6
290.8
185.4
-2.1
40.2
147.3
434.5
16.5
291.3
126.7
8.9
35.0
82.9
502.3
9.0
294.8
198.5
4.3
32.5
161.6
381.4
14.9
197.8
168.7
6.2
55.9
106.6
26 Foreign net borrowing in United States
Bonds
77
78
Bank loans n.e.c
Open market paper
29
30
U.S. government loans
1.2
3.8
-2.8
6.2
-6.0
9.7
3.1
-1.0
11.5
-3.9
4.5
7.4
-3.6
2.1
-1.4
6.3
6.9
-1.8
8.7
-7.5
10.9
5.3
-.1
13.3
-7.5
9.9
5.7
-3.8
14.3
-6.3
3.2
2.5
3.2
16.9
-19.4
-6.9
11.5
-3.2
-6.6
-8.7
30.4
8.1
3.7
20.7
-2.1
16.9
-1.0
-4.3
22.2
.1
-3.3
28.3
-6.7
-16.5
-8.3
46.3
27.0
-5.2
23.0
1.4
31 Total domestic plus foreign
849.3
846.6
691.5
767.1
687.4
704.8
749.9
659.6
703.6
636.4
746.6
644.4
Financial sectors
32 Total net borrowing by financial sectors
201.3
285.1
300.2
247.6
205.5
306.1
356.6
154.1
123.9
187.3
201.7
150.1
By instrument
33 U.S. government related
Sponsored credit agency securities
34
35
Mortgage pool securities
Loans from U.S. government
36
101.5
20.6
79.9
1.1
154.1
15.2
139.2
-.4
171.8
30.2
142.3
-.8
119.8
44.9
74.9
.0
151.0
25.2
125.8
.0
149.0
62.8
86.3
.0
194.0
70.0
124.0
.0
128.8
22.5
106.3
.0
124.8
13.2
111.6
.0
156.4
-4.7
161.1
.0
175.5
14.5
161.0
.0
145.2
17.3
127.8
.0
99.7
50.9
.1
2.6
32.0
14.2
131.0
82.9
.1
4.0
24.2
19.8
128.4
78.9
.4
-3.2
27.9
24.4
127.8
51.7
.3
1.4
54.8
19.7
54.5
36.8
.0
1.8
26.9
-11.0
157.1
45.5
1.2
1.8
74.9
33.7
162.6
52.3
.3
1.0
50.1
58.9
25.3
28.5
.0
-.1
10.1
-13.1
-.9
26.7
.3
2.0
11.0
-41.0
30.9
39.6
-.4
4.2
36.3
-48.8
26.2
41.6
-.7
-2.2
9.4
-21.8
5.0
69.0
.0
-5.7
-27.7
-30.7
201.3
285.1
300.2
247.6
205.5
306.1
356.6
154.1
123.9
187.3
201.7
150.1
21.7
79.9
99.7
-4.9
16.6
17.3
1.5
57.7
-.1
11.5
14.9
139.2
131.0
-3.6
15.2
20.9
4.2
54.7
.8
39.0
29.5
142.3
128.4
6.2
14.3
19.6
8.1
40.8
.3
39.1
44.9
74.9
127.8
-3.0
5.2
19.9
1.9
67.7
3.5
32.5
25.2
125.8
54.5
-1.4
6.2
-14.1
-1.4
46.3
-1.9
20.8
62.8
86.3
157.1
6.6
1.5
31.3
3.7
67.0
14.5
32.5
70.0
124.0
162.6
-11.1
9.4
60.8
-4.1
68.8
-1.8
40.6
22.5
106.3
25.3
2.5
2.9
-16.3
.0
40.4
-2.8
-1.4
13.2
111.6
-.9
3.5
16.5
-44.7
-2.3
23.5
-3.1
5.7
-4.7
161.1
30.9
-.7
-3.9
-56.2
.7
52.6
.1
38.2
14.5
161.0
26.2
-4.9
-12.8
-15.9
-8.3
33.8
-.5
34.7
17.3
127.8
5.0
3.3
-32.7
-41.1
4.7
22.6
-2.4
50.5
37 Private financial sectors
38 Corporate bonds
.39 Mortgages
40
Bank loans n.e.c
41
Open market paper
Loans from Federal Home Loan Banks
42
By sector
43
44
45
46
47
48
49
50
51
57.
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
A42
DomesticNonfinancialStatistics • December 1990
1.57—Continued
1985
1986
1987
1988
1990
1989
1988
Transaction category, sector
1989
Q2
Q3
Q4
1,010.9 1,106.5
Q4
Ql
Ql
Q2
All sectors
54 Total net borrowing
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
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
1,050.6 1,131.7
991.7
1,014.7
892.9
813.7
827.5
823.7
948.3
794.5
324.2
135.4
128.2
242.2
82.5
40.3
52.8
45.0
369.5
22.7
212.8
316.4
58.0
69.9
26.4
56.1
317.5
49.3
165.7
324.9
33.5
3.2
32.3
65.5
277.2
49.8
161.5
306.7
50.2
39.4
75.4
54.4
301.2
30.4
115.7
275.7
39.1
41.5
60.6
28.6
293.8
56.8
138.3
296.2
51.2
20.2
128.2
26.1
341.3
39.7
113.0
315.2
38.2
60.2
99.3
99.7
228.9
28.7
126.5
275.0
36.9
41.9
42.9
32.9
293.2
34.1
97.6
272.7
37.1
56.5
48.5
-12.2
341.4
19.1
125.7
240.1
44.1
7.5
51.6
-6.0
423.1
13.5
112.1
305.7
14.6
12.2
62.7
4.3
361.9
21.6
156.2
202.6
9.8
6.5
-10.7
46.6
14.4
.0
-7.9
10.4
-5.9
-2.8
-14.3
20.7
-22.7
-7.3
21.5
-51.0
833.7
209.3
836.9
215.0
694.9
152.8
750.4
147.1
682.4
156.1
697.7
147.6
761.0
161.6
645.8
79.4
696.0
191.1
626.8
192.4
728.4
226.2
649.2
267.8
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
17.2
86.8
84.4
-67.2
-84.5
13.6
3.7
159.0
-72.2
-85.0
11.6
1.2
-60.7 -173.0 -164.7
-38.1
-54.6
14.6
-8.3
55.7
41.3
9.8
1.0
1.1
-125.3 -102.0 -182.8 -165.7
-129.5 -124.2 -194.5 -172.3
5.5
2.1
5.0
3.3
16.7
4.5
6.8
.9
34.0
-72.1
-98.7
9.2
17.4
57.9
-112.5
-146.3
6.3
27.5
72.4
-57.8
-79.3
4.3
17.2
53.1
-61.4
-69.0
6.4
1.2
76.5
-20.8
-48.0
5.5
21.7
10.9 -124.2
73.9
-63.0
-75.5
14.6
-2.1
Flow of Funds
1.58
A43
DIRECT A N D INDIRECT SOURCES OF F U N D S TO CREDIT M A R K E T S
Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates.
1989
1988
Transaction category, or sector
1985
1986
1987
1988
1990
1989
Q4
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
QL
Q2
Q3
Q4
QL
Q2
848.1
836.9
687.0
760.8
676.5
694.9
746.7
666.5
673.3
619.5
749.9
598.1
202.0
45.9
94.6
14.2
47.3
280.2
69.4
136.3
19.8
54.7
248.8
70.1
139.1
24.4
15.1
210.7
85.2
86.3
19.7
19.4
187.6
30.7
137.9
-11.0
30.0
230.2
114.5
97.7
33.7
-15.6
312.8
15.5
83.1 -103.3
126.0
119.7
58.9 - 1 3 . 1
44.8
12.1
218.3
115.7
127.7
-41.0
15.8
203.8
27.1
178.3
-48.8
47.1
234.5
16.9
181.1
-21.8
58.3
284.1
96.1
178.7
-30.7
39.9
17.8
103.5
18.4
62.3
9.7
153.3
19.4
97.8
-7.9
169.3
24.7
62.7
-9.4
112.0
10.5
97.6
-2.4
125.3
-7.3
72.1
-28.7
146.8
13.1
99.0
-.2
188.2
8.1
116.7
-6.0
28.0
-1.6
-4.9
-9.3
126.4
-31.2
132.4
5.7
158.4
-4.6
44.2
35.1
183.3
-6.7
22.8
53.3
138.5
39.7
52.6
101.5
1.2
154.1
9.7
171.8
4.5
119.8
6.3
151.0
10.9
149.0
9.9
194.0
3.2
128.8
-6.9
124.8
30.4
156.4
16.9
175.5
-3.3
145.2
46.3
Private domestic funds advanced
13 Total net advances
14
U.S. government securities
15
State and local obligations
16 Corporate and foreign bonds
17 Residential mortgages
18 Other mortgages and loans
19 LESS: Federal Home Loan Bank advances
748.8
278.2
135.4
40.6
91.8
216.9
14.2
720.5
300.1
22.7
89.7
115.9
212.0
19.8
614.5
247.4
49.3
66.9
120.2
155.2
24.4
676.2
192.1
49.8
91.3
161.3
201.4
19.7
650.8
270.5
30.4
66.0
96.5
176.4
-11.0
623.6
179.4
56.8
68.5
133.5
219.2
33.7
631.1
258.2
39.7
36.8
122.6
232.8
58.9
772.9
332.2
28.7
91.1
113.0
194.8
-13.1
610.1
177.4
34.1
65.6
105.1
187.0
-41.0
589.0
314.3
19.1
70.4
45.5
91.0
-48.8
687.6
406.2
13.5
54.5
78.8
112.8
-21.8
505.5
265.8
21.6
70.8
-17.5
134.2
-30.7
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
578.0
188.4
87.9
150.1
151.6
730.0
198.1
107.6
160.1
264.2
528.4
135.4
136.8
179.7
76.6
562.3
156.3
120.4
198.7
86.9
522.5
177.3
-91.3
189.7
246.8
621.4
144.5
96.2
209.7
171.0
517.4
180.4
46.1
195.7
95.1
581.5
361.7
629.2
160.9
183.7
184.3
- 7 1 . 7 -138.1 -201.6
198.2
156.9
207.8
294.2
159.2
438.7
365.6
187.9
-26.6
146.9
57.3
309.9
127.4
-177.1
195.1
164.6
25 Sources of funds
26 Private domestic deposits and RPs
27
Credit market borrowing
Other sources
28
29
Foreign funds
30
Treasury balances
31
Insurance and pension reserves
32
Other, net
578.0
212.1
99.7
266.1
19.7
10.3
131.7
104.4
730.0
277.1
131.0
321.8
12.9
1.7
119.9
187.3
528.4
162.8
128.4
237.1
43.7
-5.8
135.4
63.9
562.3
229.2
127.8
205.3
9.3
7.3
177.6
11.0
522.5
223.7
54.5
244.3
-11.7
-3.4
143.8
115.6
621.4
197.5
157.1
266.9
35.3
.5
215.7
15.4
517.4
136.5
162.6
218.3
-3.8
-12.6
179.5
55.2
581.5
278.1
25.3
278.1
-43.0
13.9
119.5
187.6
361.7
275.4
-.9
87.2
30.5
-19.9
96.9
-20.2
629.2
204.9
30.9
393.5
-30.3
5.0
179.2
239.6
365.6
122.2
26.2
217.3
50.0
11.9
131.1
24.3
309.9
63.3
5.0
241.7
-18.4
-27.1
173.4
113.8
Private domestic nonfinancial investors
33 Direct lending in credit markets
34
U.S. government securities
35
State and local obligations
36
Corporate and foreign bonds
37
Open market paper
38
Other
270.5
157.8
37.7
3.8
51.6
19.6
121.5
27.0
-19.9
52.9
9.9
51.7
214.6
86.0
61.8
23.3
15.8
27.6
241.7
129.0
53.5
-9.4
36.4
32.2
182.8
136.0
28.3
-12.6
4.1
27.1
159.3
82.3
57.9
-32.5
33.8
17.8
276.4
195.1
56.7
-27.9
44.6
7.8
216.7
160.2
4.4
8.8
7.6
35.8
247.5
188.8
39.6
-32.1
20.8
30.4
-9.4
.0
12.3
.7
-56.7
34.3
348.1
290.9
2.5
31.2
6.3
17.1
200.5
105.1
3.5
45.1
24.9
21.9
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
222.8
12.4
41.4
138.5
7.2
7.4
17.7
-1.7
297.5
14.4
96.4
120.6
43.2
-3.2
20.2
5.9
179.3
19.0
-.9
76.0
28.9
37.2
21.6
-2.5
232.8
14.7
12.9
122.4
20.2
40.8
32.9
-11.2
239.8
11.7
1.7
100.5
85.2
23.1
13.3
4.4
153.3
7.6
20.2
56.5
60.9
37.0
22.9
-51.8
177.8
17.8
-31.6
20.7
39.4
68.5
39.4
23.5
301.3
12.8
-40.3
111.6
119.2
61.1
26.6
10.4
250.0
6.0
16.3
162.2
116.7
-23.8
3.9
-31.3
230.2
10.1
62.2
107.4
65.6
-13.4
-16.9
15.2
146.8
25.9
-9.2
104.6
72.8
-31.3
-14.8
-1.3
88.5
22.6
-53.6
134.9
5.8
-41.2
17.4
2.6
47 Total of credit market instruments, deposits, and
currency
493.3
419.0
393.9
474.5
422.7
312.5
454.2
518.1
497.5
220.8
495.0
288.9
23.8
77.2
82.0
33.1
101.3
110.7
36.0
86.0
106.4
27.5
83.2
106.9
27.3
80.3
60.4
32.7
99.6
134.3
41.7
82.0
112.9
2.3
75.2
-47.9
31.0
59.3
162.9
32.0
106.8
13.9
31.4
53.2
72.7
44.1
61.3
34.2
-124.2
-60.7
-173.0 -164.7
-38.1
-54.6
14.6
-8.3
55.7
34.0
57.9
- 7 2 . 1 -112.5
-14.1 -17.9
-24.0 -36.7
72.4
-57.8
60.9
-46.3
53.1
-61.4
36.7
-45.0
76.5
-20.8
71.0
-15.4
2
3
4
5
6
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to thrifts
Other loans and securities
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
Agency and foreign borrowing not in line 1
11 Sponsored credit agencies and mortgage pools
12 Foreign
7
8
9
10
48
49
50
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
MEMO: Corporate equities not included above
51 Total net issues
52
Mutual fund shares
53
Other equities
54 Acquisitions by financial institutions
55 Other net purchases
17.2
86.8
10.9
84.4
-67.2
46.9
-29.7
159.0
-72.2
50.9
35.9
73.9
-63.0
32.0
-21.2
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.
1.1
41.3
9.8
1.0
-125.3 -102.0 -182.8 -165.7
-2.9
7.2
-.2
17.3
-121.4 - 6 7 . 9 -190.3 -164.5
31. Excludes net investment of these reserves in corporate equities.
32. Mainly retained earnings and net miscellaneous liabilities.
33. Line 13 less line 20 plus line 27.
34-38. Lines 14-18 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 38 includes mortgages.
40. Mainly an offset to line 9.
47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46.
48. Line 2/line 1.
49. Line 20/line 13.
50. Sum of lines 10 and 29.
51. 53. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding may be obtained from Flow of Funds Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.
A44
DomesticNonfinancialStatistics • December 1990
1.59
SUMMARY OF CREDIT MARKET DEBT OUTSTANDING
Billions of dollars; period-end levels.
1988
Transaction category, sector
1985
1986
1987
1989
1990
1988
Q4
Q2
Ql
Q3
Q4
Ql
Q2
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
6,804.5
7,646.3
8,343.9
9,096.0
9,096.0
9,267.7
9,438.6
9,603.6
9,803.5
9,972.6
10,126.6
By sector and instrument
2 U.S. government
3
Treasury securities
4
Agency issues and mortgages
1,600.4
1,597.1
3.3
1,815.4
1,811.7
3.6
1,960.3
1,955.2
5.2
2,117.8
2,095.2
22.6
2,117.8
2,095.2
22.6
2,155.7
2,133.4
22.3
2,165.7
2,142.1
23.6
2,204.7
2,180.7
24.0
2,268.0
2,245.2
22.8
2,359.5
2,329.3
30.2
2,397.3
2,365.8
31.6
5 Private domestic nonfinancial sectors
6
Debt capital instruments
7
Tax-exempt obligations
8
Corporate bonds
9
Mortgages
10
Home mortgages
11
Multifamily residential
12
Commercial
13
Farm
5.204.1
3.485.2
655.5
542.6
2.287.1
1.490.2
213.0
478.1
105.9
5,831.0
3.962.7
679.1
669.4
2,614.2
1.720.8
246.2
551.4
95.8
6.383.6
4,427.9
728.4
748.8
2.950.7
1,943.1
270.0
648.7
88.9
6,978.2
4,886.4
790.8
851.7
3.243.8
2.173.9
286.7
696.4
86.8
6,978.2
4,886.4
790.8
851.7
3.243.8
2.173.9
286.7
696.4
86.8
7,111.9
4.989.1
798.6
866.2
3.324.2
2,229.0
293.1
716.2
86.0
7,272.9
5,091.4
804.9
887.9
3,398.6
2,287.6
298.3
725.9
86.8
7,398.9
5,189.9
816.4
903.5
3,470.0
2,347.6
301.2
734.9
86.3
7.535.5
5.283.2
821.2
925.3
3.536.6
2.404.3
304.4
742.6
85.3
7,613.1
5,356.3
822.5
935.9
3,597.9
2,450.3
309.2
753.7
84.7
7,729.3
5,432.2
826.8
951.0
3,654.5
2,492.8
313.3
763.3
85.1
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
1,718.9
601.8
602.3
72.2
442.6
1,868.2
659.8
666.0
62.9
479.6
1,955.7
693.2
673.3
73.8
515.3
2,091.9
743.5
713.1
85.7
549.6
2,091.9
743.5
713.1
85.7
549.6
2,122.8
741.7
725.6
96.1
559.4
2,181.5
756.7
740.3
110.1
574.4
2,208.9
771.0
750.7
113.3
574.0
2,252.3
790.6
763.0
107.1
591.7
2,256.9
774.3
756.6
126.0
599.9
2,297.1
783.3
764.8
128.7
620.3
19
20
21
22
23
24
25
By borrowing sector
State and local governments
Households
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
5.204.1
473.9
2,296.0
2.434.2
173.4
898.3
1,362.4
5.831.0
510.1
2.596.1
2,724.8
156.6
997.6
1,570.6
6,383.6
558.9
2,879.1
2,945.6
145.5
1,075.4
1,724.6
6,978.2
604.5
3,191.5
3,182.2
137.6
1,145.1
1,899.5
6,978.2
604.5
3,191.5
3,182.2
137.6
1,145.1
1,899.5
7,111.9
612.4
3,257.9
3,241.6
136.7
1,163.9
1,941.0
7,272.9
619.9
3,330.5
3.322.5
139.5
1.177.6
2,005.3
7,398.9
629.9
3.411.3
3,357.6
139.2
1,183.0
2.035.4
7,535.5
634.1
3,501.5
3,399.9
139.2
1,195.9
2,064.8
7,613.1
634.3
3,542.8
3.436.0
138.2
1.205.1
2,092.8
7.729.3
636.8
3,600.1
3.492.4
143.8
1,218.6
2,130.0
236.7
71.8
27.9
33.9
103.0
238.3
74.9
26.9
37.4
99.1
244.6
82.3
23.3
41.2
97.7
253.9
89.2
21.5
49.9
93.2
253.9
89.2
21.5
49.9
93.2
254.0
90.4
21.6
54.4
87.5
252.2
92.1
21.5
52.7
85.8
257.7
94.2
22.6
57.5
83.4
261.6
94.5
21.4
63.0
82.7
260.5
102.1
19.0
59.3
80.1
273.0
107.5
18.5
65.1
81.9
7,041.1
7,884.7
8,588.5
9,349.9
9,349.9
9,521.7
9,690.7
9,861.3
10,065.1
10,233.1
10,399.7
26 Foreign credit market debt held in
United States
27
Bonds
28
Bank loans n.e.c
29
Open market paper
30
U.S. government loans
31 Total domestic plus foreign
Financial sectors
32 Total credit market debt owed by
financial sectors
33
34
35
36
37
38
39
40
41
42
By instrument
U.S. government related
Sponsored credit agency securities . . . .
Mortgage pool securities
Loans from U.S. government
Private financial sectors
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks
43 Total, by sector
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
1,213.2
1,529.8
1,836.8
2,084.4
2,084.4
2,191.3
2,234.1
2,263.8
2,322.4
2,358.6
2,400.0
632.7
257.8
368.9
6.1
580.5
204.5
2.7
32.1
252.4
88.8
810.3
273.0
531.6
5.7
719.5
287.4
2.7
36.1
284.6
108.6
978.6
303.2
670.4
5.0
858.2
366.3
3.1
32.8
322.9
133.1
1,098.4
348.1
745.3
5.0
986.1
418.0
3.4
34.2
377.7
152.8
1,098.4
348.1
745.3
5.0
986.1
418.0
3.4
34.2
377.7
152.8
1,140.8
364.3
771.5
5.0
1,050.5
458.6
3.5
32.2
392.5
163.8
1,169.5
369.0
795.6
5.0
1,064.6
466.1
3.5
33.8
399.4
161.9
1,203.6
370.4
828.2
5.0
1,060.2
472.7
3.5
34.1
398.8
151.1
1,249.3
373.3
871.0
5.0
1,073.0
482.7
3.4
36.0
409.1
141.8
1,287.5
376.0
906.5
5.0
1,071.1
492.6
3.2
33.2
409.1
132.9
1,319.7
378.9
935.9
5.0
1,080.3
510.4
3.3
33.5
406.8
126.3
1,213.2
1,529.8
1,836.8
2,084.4
2,084.4
2,191.3
2,234.1
2,263.8
2,322.4
2,358.6
2,400.0
263.9
368.9
580.5
79.2
106.2
98.9
4.4
261.2
5.6
25.0
278.7
531.6
719.5
75.6
116.8
119.8
8.6
328.1
6.5
64.0
308.2
670.4
858.2
81.8
131.1
139.4
16.7
378.8
7.3
103.1
353.1
745.3
986.1
78.8
136.2
159.3
18.6
446.1
11.4
135.7
353.1
745.3
986.1
78.8
136.2
159.3
18.6
446.1
11.4
135.7
369.3
771.5
1,050.5
73.3
140.0
170.1
17.8
464.3
11.1
173.8
374.0
795.6
1,064.6
75.7
141.2
167.9
17.7
478.0
10.6
173.5
375.4
828.2
1,060.2
77.0
144.0
155.7
17.5
481.2
10.0
174.9
378.3
871.0
1,073.0
77.4
142.5
145.2
17.2
496.2
10.1
184.4
381.0
906.5
1,071.1
73.4
140.8
137.0
15.4
501.3
10.1
193.1
383.8
935.9
1,080.3
76.1
133.0
128.7
16.3
510.9
9.7
205.7
All sectors
54 Total credit market debt
8,254.4
9,414.4
10,425.3
11,434.3
11,434.3
11,712.9
11,924.8
12,125.1
12,387.4
12,591.7
12,799.7
55
56
57
58
59
60
61
62
2,227.0
655.5
818.9
2,289.8
601.8
662.4
358.5
640.5
2,620.0
679.1
1,031.7
2,617.0
659.8
729.0
384.9
693.1
2,933.9
728.4
1,197.4
2,953.8
693.2
729.5
437.9
751.1
3,211.1
790.8
1,358.9
3,247.2
743.5
768.9
513.4
800.5
3,211.1
790.8
1,358.9
3,247.2
743.5
768.9
513.4
800.5
3,291.5
798.6
1,415.2
3,327.7
741.7
779.5
543.0
815.7
3,330.3
804.9
1,446.1
3,402.1
756.7
795.6
562.2
827.0
3,403.3
816.4
1,470.5
3,473.6
771.0
807.4
569.6
813.4
3,512.4
821.2
1,502.6
3,540.1
790.6
820.3
579.2
821.1
3,642.0
822.5
1,530.7
3,601.1
774.3
808.9
594.5
817.8
3,712.1
826.8
1,568.9
3,657.7
783.3
816.9
600.5
833.6
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
Flow of Funds
1.60
A45
S U M M A R Y OF CREDIT MARKET CLAIMS, BY HOLDER
Billions of dollars, except as noted; period-end levels.
1988
Transaction category, or sector
1985
1987
1986
1990
1989
1988
Q4
Q1
Q2
Q3
Q4
Ql
Q2
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
6,804.5
7,646.3
8,343.9
9,096.0
9,096.0
9,267.7
9,438.6
9,603.6
9,803.5
9,972.6
10,126.6
By public agencies and foreign
?. Total held
3
U.S. government securities
4
Residential mortgages
5 FHLB advances to thrifts
Other loans and securities
6
1,474.0
435.4
518.2
88.8
431.6
1,779.4
509.8
678.5
108.6
482.4
2,006.6
570.9
814.1
133.1
488.6
2,199.7
651.5
900.4
152.8
495.1
2,199.7
651.5
900.4
152.8
495.1
2,257.0
666.1
927.2
163.8
500.0
2,266.9
646.1
954.4
161.9
504.5
2,323.3
674.5
991.1
151.1
506.6
2,386.5
689.4
1,038.4
141.8
517.0
2,428.9
686.4
1,078.9
132.9
530.7
2,504.7
714.0
1,120.8
126.3
543.6
7 Total held, by type of lender
8
U.S. government
9
Sponsored credit agencies and mortgage pools . . .
10 Monetary authority
11 Foreign
1,474.0
248.6
659.8
186.0
379.5
1,779.4
255.3
835.9
205.5
482.8
2,006.6
240.0
1,001.0
230.1
535.5
2,199.7
217.6
1,113.0
240.6
628.5
2,199.7
217.6
1,113.0
240.6
628.5
2,257.0
212.9
1,151.1
235.4
657.6
2,266.9
211.5
1,157.8
238.4
659.2
2,323.3
207.8
1,193.5
227.6
694.5
2,386.5
207.1
1,238.2
233.3
707.9
2,428.9
216.6
1,275.4
224.4
712.5
2,504.7
231.1
1,309.5
237.8
726.3
Agency and foreign debt not in line 1
Sponsored credit agencies and mortgage pools . . .
Foreign
632.7
236.7
810.3
238.3
978.6
244.6
1,098.4
253.9
1,098.4
253.9
1,140.8
254.0
1,169.5
252.2
1,203.6
257.7
1,249.3
261.6
1,287.5
260.5
1,319.7
273.0
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
6,199.9
1,791.6
655.5
517.3
1,185.1
2,139.3
88.8
6,915.6
2,110.1
679.1
606.6
1,288.5
2,339.8
108.6
7,560.4
2,363.0
728.4
674.3
1,399.0
2,528.7
133.1
8,248.5
2,559.7
790.8
765.6
1,560.2
2,724.9
152.8
8,248.5
2,559.7
790.8
765.6
1,560.2
2,724.9
152.8
8,405.4
2,625.4
798.6
776.5
1,594.9
2,773.7
163.8
8,593.3
2,684.1
804.9
797.7
1,631.5
2,836.9
161.9
8,741.5
2,728.8
816.4
814.5
1,657.7
2,875.2
151.1
8,927.9
2,823.0
821.2
831.6
1,670.4
2,923.5
141.8
9,091.7
2,955.5
822.5
846.8
1,680.6
2,919.1
132.9
9,214.7
2,998.1
826.8
862.5
1,685.2
2,968.4
126.3
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
5,289.4
1,989.5
1,191.2
1,365.3
743.4
6,018.0
2,187.6
1,297.9
1,525.4
1,007.1
6,564.5
2,323.0
1,445.5
1,705.1
1,091.0
7,128.6
2,479.3
1,567.7
1,903.8
1,177.9
7,128.6
2,479.3
1,567.7
1,903.8
1,177.9
7,273.3
2,501.4
1,570.6
1,957.8
1,243.5
7,430.5
2,549.0
1,561.0
2,004.9
1,315.6
7,518.2
2,599.6
1,530.3
2,042.7
1,345.5
7,674.1
2,656.6
1,480.3
2,093.4
1,443.8
7,760.9
2,680.4
1,461.2
2,135.7
1,483.6
7,851.6
2,721.1
1,425.4
2,181.4
1,523.7
76 Sources of funds
27 Private domestic deposits and RPs
28
Credit market debt
5,289.4
2,926.1
580.5
6,018.0
3,199.0
719.5
6,564.5
3,354.2
858.2
7,128.6
3,599.1
986.1
7,128.6
3,599.1
986.1
7,273.3
3,629.1
1,050.5
7,430.5
3,680.0
1,064.6
7,518.2
3,741.3
1,060.2
7,674.1
3,822.8
1,073.0
7,760.9
3,849.8
1,071.1
7,851.6
3,843.9
1,080.3
79
30
31
32
33
1,782.9
5.6
25.8
1,289.3
462.1
2,099.5
18.6
27.5
1,398.5
655.0
2,352.1
62.3
21.6
1,527.8
740.3
2,543.5
71.5
29.0
1,692.5
750.5
2,543.5
71.5
29.0
1,692.5
750.5
2,593.7
61.8
13.5
1,741.8
776.6
2,685.9
50.0
34.4
1,774.0
827.5
2,716.6
55.7
30.3
1,793.2
837.4
2,778.3
59.9
25.6
1,829.9
862.9
2,840.0
62.8
16.7
1,867.1
893.3
2,927.4
58.2
29.1
1,918.3
921.8
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
1,491.0
803.3
231.5
37.1
135.2
283.8
1,617.0
848.7
212.6
90.5
145.1
320.1
1,854.1
936.7
274.4
114.0
178.5
350.4
2,106.0
1,072.2
340.9
100.4
218.0
374.4
2,106.0
1,072.2
340.9
100.4
218.0
374.4
2,182.6
1,099.1
348.9
123.6
225.1
386.0
2,227.4
1,119.8
353.6
125.1
233.5
395.3
2,283.6
1,166.6
363.1
121.2
235.9
396.8
2,326.8
1,201.0
369.2
117.2
227.4
412.1
2,401.9
1,279.7
363.0
125.4
219.0
414.7
2,443.4
1,286.3
367.0
136.7
232.6
420.9
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
3,116.8
171.9
420.3
1,831.9
225.6
339.9
108.3
18.8
3,410.1
186.3
516.6
1,948.3
268.9
336.7
128.5
24.8
3,583.9
205.4
515.4
2,017.1
297.8
373.9
150.1
24.3
3,832.3
220.1
527.2
2,156.2
318.0
414.7
182.9
13.1
3,832.3
220.1
527.2
2,156.2
318.0
414.7
182.9
13.1
3,865.5
220.7
494.6
2,168.9
342.7
430.8
192.1
15.8
3,927.1
226.4
495.8
2,189.3
362.1
435.7
197.1
20.7
3,977.2
224.4
487.2
2,224.4
391.0
440.0
198.6
11.4
4,072.1
231.8
528.9
2,256.7
403.3
437.8
196.2
17.6
4,098.1
234.4
501.9
2,290.4
436.7
429.2
191.6
13.9
4,103.5
242.6
499.0
2,316.9
426.3
407.1
194.5
17.0
48 Total of credit market instruments, deposits, and
currency
12
13
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
4,607.8
5,027.2
5,438.0
5,938.2
5,938.2
6,048.1
6,154.5
6,260.8
6,399.0
6,500.0
6,546.9
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
20.9
85.3
385.1
22.6
87.0
501.3
23.4
86.8
597.8
23.5
86.4
700.1
23.5
86.4
700.1
23.7
86.5
719.5
23.4
86.5
709.3
23.6
86.0
750.2
23.7
86.0
767.8
23.7
85.4
775.3
24.1
85.2
784.5
MEMO: Corporate equities not included above
52 Total market value
2,823.9
3,360.6
3,325.0
3,619.8
3,619.8
3,730.8
4,071.3
4,398.7
4,382.1
4,172.4
4,339.8
53
54
Mutual fund shares
Other equities
240.2
2,583.7
413.5
2,947.1
460.1
2,864.9
478.3
3,141.6
478.3
3,141.6
486.3
3,244.5
514.8
3,556.5
543.9
3,854.8
555.1
3,827.0
550.3
3,622.1
587.9
3,751.9
55
56
Holdings by financial institutions
Other holdings
800.3
2,023.6
974.6
2,385.9
1,039.5
2,285.5
1,176.1
2,443.7
1,176.1
2,443.7
1,241.6
2,489.2
1,354.4
2,716.9
1,490.5
2,908.2
1,497.8
2,884.3
1,438.4
2,734.0
1,539.8
2,800.0
49
50
51
NOTES BY LINE NUMBER.
1. Line 1 of table 1.59.
2. Sum of lines 3 - 6 or 8-11.
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
2.10
Domestic Nonfinancial Statistics • December 1990
NONFINANCIAL BUSINESS ACTIVITY
Selected Measures
1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1990
Measure
1987
1988
1989
Jan.
Feb.
Mar.
Apr.
May
June'
July'
Aug.'
Sept.
1 Industrial production (1987 = 100)1
100.0
105.4
108.1
107.5
108.5
108.9
108.8
109.4
110.1
110.3
110.4
110.7
Market groupings
Products, total (1987 = 100)
Final, total (1987 = 100)
Consumer goods (1987 = 100)
Equipment (1987 = 100)
Intermediate (1987 = 100)
Materials (1987 = 100)
100.0
100.0
100.0
100.0
100.0
100.0
105.3
105.6
104.0
107.6
104.4
105.6
108.6
109.1
106.7
112.3
106.8
107.4
108.4
108.5
106.0
111.8
108.0
106.2
109.4
109.7
107.0
113.3
108.4
107.1
110.1
110.7
107.5
114.9
108.2
107.1
109.8
110.4
107.2
114.7
108.0
107.3
110.5
111.2
107.4
116.2
108.3
107.7
110.9
111.7
107.8
116.8
108.3
108.8
110.8
111.5
107.3
116.9
108.5
109.5
110.9
111.7
107.8
116.7
108.4
109.7
111.5
112.6
109.1
117.1
107.9
109.4
100.0
105.8
108.9
108.1
109.6
109.8
109.5
110.3
110.8
111.0
111.2
111.4
2
3
4
5
6
7
Industry
groupings
8 Manufacturing (1987 = 100)
Capacity utilization (percent) 2
Manufacturing
9
10 Construction contracts (1982 = 100)3
81.4
83.9
83.9
82.0
83.0
82.9
82.5
82.8
83.0
82.9
82.8
82.8
164.8
166.4
170.C
158.0
154.0
157.0
147.0
155.0
153.0
148.0
146.0
166.0
11
12
13
14
15
16
17
18
19
20
Nonagricultural employment, total 4
Goods-producing, total
Manufacturing, total
Manufacturing, production- worker . . .
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable personal income
Retail sales 6
123.9
101.5
96.7
91.9
133.3
234.3
226.4
183.8
231.6
213.6
128.0
103.7
98.6
93.9
138.2
253.2
244.6
196.5
252.5
228.0
131.6
105.3
99.6
94.8
142.7
272.7
258.9
203.1
270.1
240.6
133.0
103.5
97.4
92.0
145.3
281.9
264.9
201.1
279.9
249.6
133.3
104.1
97.8
92.5
145.6
283.8
266.9
203.0
281.7
249.7
133.5
103.8
97.6
92.4
146.0
285.8
268.6
204.6
283.9
248.7
133.6
103.4
97.5
92.3
146.2
286.4'
269.9
203.9'
283.6'
246.3
134.1
103.5
97.4
92.1
147.0
287.5'
271.2'
205.8'
284.4'
246.1
134.4
103.4
97.3
92.0
147.4
288.7
272.8
206.8
285.8
248.9
134.3
103.1
97.2
92.0
147.3
290.1
274.4
206.9
287.0
250.1
134.2
102.8
96.9
91.7
147.3
290.7
274.4
206.7
287.4
249.2
134.1
102.4
96.6
91.3
147.3
292.2
276.2
206.4
288.7
251.9
21
22
Prices 7
Consumer (1982-84 = 100)
Producer finished goods (1982 = 100) . . .
113.6
105.4
118.3
108.0
124.0
113.6
127.4
117.6
128.0
117.4
128.7
117.2
128.9
117.2
129.2
117.7
129.9
117.9
130.4
118.0
131.6
119.2
132.7
120.3
1. A major revision of the industrial production index and the capacity
utilization rates was released in April 1990. See "Industrial Production: 1989
Developments and Historical Revision" in the Federal Reserve Bulletin, vol. 76
(April 1990), pp. 187-204.
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 latest month are preliminary and the
prior three months have been revised. See "Recent Developments in Industrial
Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June 1990), pp.
411-35.
Selected Measures
2.11
A47
LABOR FORCE, EMPLOYMENT, A N D UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1990
Category
1987
1988
1989
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
HOUSEHOLD SURVEY DATA
1 Noninstitutional population1
185,010
186,837
188,601
189,607
189,717
189,844
189,983
190,122
190,275
190,411
190,568
2 Labor force (including Armed Forces) 1
3 Civilian labor force
Employment
4
Nonagricultural industries
5
Agriculture
Unemployment
6
Number
7
Rate (percent of civilian labor force)
8 Not in labor force
122,122
119,865
123,893
121,669
126,077
123,869
126,825
124,630
127,017
124,829
127,061
124,886
127,159
125,004
126,981
124,836
126,906
124,767
126,810
124,660
127,134
124,967
109,232
3,208
111,800
3,169
114,142
3,199
114,957
3,079
115,133
3,200
114,983
3,133
115,045
3,305
115,041
3,348
114,867
3,085
114,521
3,137
114,717
3,181
7,425
6.2
62,888
6,701
5.5
62,944
6,528
5.3
62,524
6,594
5.3
62,782
6,495
5.2
62,700
6,770
5.4
62,783
6,653
5.3
62,824
6,447
5.2
63,141
6,814
5.5
63,369
7,003
5.6
63,601
7,069
5.7
63,434
9 Nonagricultural payroll employment3
102,200
105,584
108,573
109,958
110,122
110,177
110,617
110,829
110,740
110,657'
110,556
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
19,024
717
4,967
5,372
24,327
6,547
24,236
17,010
19,403
721
5,125
5,548
25,139
6,676
25,600
17,372
19,611
722
5,302
5,703
25,807
6,814
26,889
17,726
19,244
727
5,368
5,804
26,115
6,817
27,842
18,041
19,217
729
5,313
5,808
26,125
6,821
27,950
18,159
19,190
734
5,256
5,809
26,141
6,823
27,969
18,255
19,167
738
5,286
5,833
26,164
6,838
28,094
18,497
19,148
744
5,270
5,846
26,205
6,844
28,225
18,547
19,083'
736
5,194'
5,845'
26,213'
6,850'
28,386'
18,35c
19,017
738
5,174
5,859
26,202
6,843
28,407
18,316
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.
19,131r
745'
5,229'
5,841'
26,225'
6,842'
28,287'
18,44C
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 1990
OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION 1
Seasonally adjusted
1989
1990
1989
1990
1989
1990
Series
Q4
Ql
Q2
Q3
Output (1987 = 100)
Q4
Ql
Q2
Q3
Q4
Capacity (percent of 1987 output)
Ql
Q2
Q3
Utilization rate (percent)
1 Total industry
108.1
108.3
109.4
110.4
129.5
130.3
131.2
132.1
83.5
83.1
83.4
83.6
2 Manufacturing
108.7
109.2
110.2
111.2
131.1
132.1
133.2
134.2
82.9
82.6
82.8
82.8
106.1
109.9
110.0
104.8
105.3
104.5
106.4
121.9
110.1
99.1
106.4
110.5
110.4
105.1
106.1
107.1
104.6
124.4
111.1
91.5
106.3
112.1
112.4
102.3
107.4
107.5
107.1
126.7
112.2
102.6
107.9
112.7
113.5
101.0
112.3
114.5
109.3
128.7
112.3
104.0
123.4
134.7
135.2
122.3
126.9
131.5
120.2
150.1
136.0
132.0
124.2
135.8
136.2
123.2
127.2
131.9
120.4
151.6
137.4
132.5
124.9
137.0
137.2
124.1
127.3
132.0
120.6
153.2
138.8
133.5
125.7
138.2
138.3
125.0
127.4
132.1
120.9
154.9
140.2
134.5
85.9
81.6
81.3
85.7
83.0
79.5
88.5
81.2
81.0
75.1
85.7
81.4
81.0
85.3
83.4
81.2
86.9
82.1
80.9
69.0
85.1
81.8
81.9
82.5
84.3
81.4
88.8
82.7
80.8
76.9
85.8
81.6
82.1
80.8
88.2
86.7
90.4
83.1
80.1
77.3
106.7
107.1
100.3
104.2
108.9
106 2
106.8
100.6
110.6
111.8
111.6
107.7
101.1
103.9
109.9
111 7
109.9
101.3
105.7
108.4
113.6
107.5
102.4
104.5
109.9
116 3
106.0
102.5
107.8
111.0
113.6
108.2
101.9
106.1
111.2
132.5
125.9
115.5
113.3
132.1
123 7
121.0
116.1
125.7
120.8
133.4
126.9
116.0
113.9
133.4
126 1
121.1
115.7
126.0
121.1
134.3
128.0
116.6
114.7
134.7
128 4
121.1
115.2
126.4
121.6
135.2
129.0
117.1
115.5
135.9
80.6
85.0
86.9
92.0
82.5
85 8
88.3
86.7
88.0
92.6
83.6
84.8
87.2
91.2
82.4
88 6
90.8
87.6
83.9
89.5
84.6
84.0
87.9
91.1
81.6
90 6
87.5
88.9
85.3
91.3
84.0
83.8
87.1
91.9
81.8
June'
July r
Aug/
Sept."
3 Primary processing
4 Advanced processing...
5 Durable
Lumber and products
6
Primary metals
8
Iron and steel ..
9
Nonferrous
10
Nonelectrical machinery
11
Electrical machinery
12
Motor vehicles and parts
13
Aerospace and miscellaneous
transportation equipment.
14 Nondurable
15
Textile mill products
16
Paper and products
17
Chemicals and products
18
19
Petroleum products
20 Mining
21 Utilities
22
Electric
1
Previous cycle 2
High
Low
Latest cycle 3
1989
Low
Sept.
110.2
102.5
110.7
113.6
High
121.1
114.8
126.7
122.1
91.0
89.2
87.3
93.0
1990
Jan.
Feb.
Mar.
Apr.
May
Capacity utilization rate (percent)
23 Total industry
89.2
72.6
87.3
71.8
83.9
82.7
83.2
83.4
83.1
83.4
83.7
83.7
83.6
83.6
24 Manufacturing
88.9
70.8
87.3
70.0
83.6
82.0
83.0
82.9
82.5
82.8
83.0
82.9
82.8
82.8
25 Primary processing
26 Advanced processing..
27
Durable
28
Lumber and
products
29
Primary metals . . .
30
Iron and steel . .
31
Nonferrous
32
Nonelectrical
machinery
33
Electrical
machinery
34
Motor vehicles
and parts
35
Aerospace and
miscellaneous
transportation
equipment
36
Nondurable
37
Textile mill
products
38
Paper and
products
39
Chemicals and
products
40
Plastics
92.2
87.5
88.8
68.9
72.0
68.5
89.7
86.3
86.9
66.8
71.4
65.0
86.1
82.5
82.8
85.7
80.5
79.9
86.1
81.7
81.3
85.2
82.0
81.9
85.0
81.5
81.2
84.9
82.0
82.1
85.5
81.9
82.4
86.0
81.6
82.1
86.0
81.5
82.1
85.4
81.7
82.1
90.1
100.6
105.8
92.9
62.2
66.2
66.6
61.3
87.6
102.4
110.4
90.5
60.9
46.8
38.3
62.2
84.3
86.8
83.7
91.4
86.3
82.6
79.3
87.8
84.7
84.8
83.8
86.4
85.0
82.8
80.4
86.6
83.4
83.6
80.8
87.9
81.9
83.4
79.9
88.8
82.0
86.0
83.6
89.8
81.9
86.5
83.7
90.8
81.2
89.7
89.1
90.7
79.3
88.3
87.3
89.8
96.4
74.5
92.1
64.9
82.7
81.9
82.0
82.3
82.3
82.8
82.9
83.1
83.4
82.7
87.8
63.8
89.4
71.1
82.0
80.5
80.8
81.5
80.5
81.0
81.0
80.3
80.2
80.0
93.4
51.1
93.0
44.5
78.2
58.1
71.0
77.9
71.9
77.9
80.7
76.5
75.0
80.5
77.0
87.9
66.6
71.8
81.1
87.0
66.9
76.9
85.2
84.7
83.4
84.9
83.9
85.3
83.7
84.2
84.6
84.2
84.5
83.9
84.5
83.8
84.9
84.0
84.0
83.7
83.2
83.7
92.0
60.4
91.7
73.8
88.2
86.9
88.8
85.9
86.7
88.1
88.8
87.9
86.9
86.3
96.9
69.0
94.2
82.0
90.5
91.3
92.2
90.0
92.0
90.7
90.6
93.6
91.3
90.7
87.9
69.9
85.1
70.1
81.9
82.6
82.8
81.8
82.2
81.1
81.6
81.6
81.8
82.1
102.0
50.6
90.9
63.4
85.5
88.5
88.9
88.3
90.8
90.9
90.0
90.5
96.7
94.4
95.6
99.0
81.1
88.4
82.5
82.7
89.5
96.6
88.3
88.3
68.2
80.6
76.2
78.7
89.9
87.2
84.3
88.9
89.7
87.8
84.8
89.5
92.5
87.3
82.5
88.4
90.1
87.5
84.2
90.4
88.2
89.2
84.5
90.3
86.4
88.7
84.7
90.7
87.9
88.8
86.8
92.9
91.2
90.0
86.4
91.9
90.5
88.6
87.4
93.2
91.2
89.0
88.1
94.0
41
Petroleum
products
42 Mining
43 Utilities
44
Electric
1. These data also appear in the Board's G.17 (419) release. For address, see
inside front cover. For a detailed description of the series, see "Recent Developments in Industrial Capacity and Utilization," Federal Reserve Bulletin, vol. 76
(June 1990), pages 411-35.
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 Value 1
Monthly data are seasonally adjusted
portion
1990
1989
1987
Groups
1989
avg.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June'
July r
Aug/
Sept."
Index (1987 = 100)
MAJOR MARKET
100.0
2
4
5
6
7
8
9
10
n
i?
Auto parts and allied g o o d s . . .
Other
Appliances, A/C, and TV
Carpeting and furniture
Miscellaneous home goods . . .
Nondurable consumer goods
N
14
IS
16
17
18
19
">0
7]
22
23
Clothing
Chemical products
Fuels
Residential utilities
Equipment, total
108.1
108.2
107.7
108.1
108.6
107.5
108.5
108.9
108.8
109.4
110.1
110.3
110.4
110.7
60.8
1 Total index
108.6
108.8
108.1
108.9
109.7
108.4
109.4
110.1
109.8
110.5
110.9
110.8
110.9
111.5
46.0
26.0
5.6
2.5
1.5
.9
.6
1.0
3.1
.8
.9
1.4
20.4
9.1
2.6
3.5
2.5
2.7
.7
2.0
109.1
106.7
107.9
106.9
105.7
101.2
113.3
108.7
108.7
106.7
101.5
114.5
106.4
104.2
101.6
109.4
114.3
106.7
102.8
108.1
109.6
106.3
107.6
104.9
103.1
102.0
105.0
107.4
109.8
109.3
100.9
115.8
106.0
103.7
101.6
107.8
116.2
106.0
103.4
106.9
108.5
107.3
106.8
102.9
99.7
100.7
98.2
107.6
109.8
107.6
101.1
116.6
107.4
105.6
101.9
110.3
117.2
106.0
103.1
107.0
109.4
107.4
105.7
102.4
98.4
92.8
108.0
108.2
108.4
102.0
100.4
117.1
107.8
105.8
100.1
111.3
118.1
108.0
103.0
109.8
110.3
108.3
106.8
104.5
100.1
92.6
112.6
111.2
108.6
101.0
102.0
117.1
108.7
106.4
99.4
110.3
116.9
115.2
100.5
120.7
108.5
106.0
99.4
85.2
66.3
62.1
73.3
113.6
110.6
108.4
103.7
116.2
107.8
105.5
100.6
112.7
116.2
107.9
105.1
109.0
109.7
107.0
106.2
99.3
92.7
86.9
102.3
109.4
111.6
107.8
104.7
118.2
107.2
106.2
99.6
112.0
117.6
101.5
106.6
99.6
110.7
107.5
110.8
109.3
107.7
100.5
120.0
111.6
112.0
108.1
105.9
118.0
106.6
105.8
97.0
111.0
116.4
103.1
101.8
103.6
110.4
107.2
107.3
102.4
95.8
87.7
109.3
112.2
111.2
104.4
107.5
117.3
107.1
105.6
96.0
113.5
118.1
104.1
101.6
105.0
111.2
107.4
109.3
107.0
105.6
96.8
120.4
108.9
111.1
103.6
107.6
117.5
106.9
105.2
96.4
113.0
118.6
104.1
98.2
106.3
111.7
107.8
112.1
112.2
112.9
103.8
128.3
111.2
112.0
107.5
107.8
117.2
106.6
104.4
95.7
112.8
118.3
105.3
102.6
106.3
111.5
107.3
108.5
106.7
104.8
98.1
116.2
109.7
110.0
100.2
107.4
117.0
107.0
104.5
95.8
112.5
119.7
106.8
104.6
107.6
111.7
107.8
108.0
104.5
101.5
97.2
108.8
108.9
110.8
102.0
108.0
117.5
107.7
105.2
96.0
114.1
119.1
108.4
105.3
109.6
112.6
109.1
111.5
112.5
115.2
115.1
115.4
108.4
110.8
102.0
107.1
118.1
108.5
105.8
95.7
115.3
120.7
109.1
105.7
110.3
20.0
112.3
113.8
110.1
112.0
112.9
111.8
113.3
114.9
114.7
116.2
116.8
116.9
116.7
117.1
121.6
126.4
149.3
114.2
126.2
95.2
117.6
97.3
114.3
89.7
123.5
126.8
148.9
115.8
132.5
105.7
119.4
97.6
118.6
91.3
124.4
126.2
150.6
116.0
137.4
112.2
119.9
97.6
119.5
92.8
124.6
125.7
152.6
117.1
133.8
103.0
119.7
97.9
116.2
90.0
124.8
128.6
154.5
117.7
132.0
100.9
119.3
97.4
106.9
93.4
125.6
128.7
154.1
117.1
138.3
113.7
117.9
97.0
107.4
91.9
119.1
121.7
137.2
113.8
123.8
103.9
116.5
97.4
93.7
92.3
120.7
123.7
141.8
113.8
127.0
103.1
119.1
98.9
97.3
87.5
116.0
119.9
132.8
112.4
112.9
97.6
116.3
96.6
97.3
87.9
118.7
123.5
141.0
113.4
117.0
98.0
117.8
96.7
99.9
89.4
119.9
124.0
142.7
112.8
123.4
97.6
118.5
96.6
100.3
91.6
118.0
124.0
142.7
113.5
111.4
69.6
118.7
97.5
98.3
91.6
120.1
124.7
144.3
113.4
122.7
91.7
117.4
97.6
100.1
94.3
122.2
126.0
147.2
113.9
130.6
104.5
117.8
97.5
106.0
92.9
30
31
37
33
Other
Defense and space equipment
Oil and gas well drilling
Manufactured homes
13.9
5.6
1.9
4.0
2.5
1.2
1.9
5.4
.6
.2
34
35
36
Construction supplies
Business supplies
14.7
6.0
8.7
106.8
106.1
107.3
106.3
105.2
107.0
106.9
106.3
107.3
107.3
107.0
107.5
107.9
107.4
108.2
108.0
107.9
108.0
108.4
108.2
108.5
108.2
107.3
108.9
108.0
106.4
109.1
108.3
105.5
110.2
108.3
106.0
109.8
108.5
106.4
110.0
108.4
105.9
110.1
107.9
104.9
110.0
37 Materials, total
39.2
107.4
107.4
107.1
107.0
106.9
106.2
107.1
107.1
107.3
107.7
108.8
109.5
109.7
109.4
38
39
40
41
47
43
44
4S
46
47
48
49
50
19.4
4.2
7.3
7.9
2.8
9.0
1.2
1.9
3.8
2.1
10.9
7.2
3.7
111.6
109.0
114.7
110.2
112.1
105.3
99.8
103.8
106.4
107.6
101.4
99.9
104.3
112.0
108.8
115.5
110.6
112.9
104.2
99.6
104.1
104.5
106.5
101.6
100.7
103.6
110.8
106.9
114.4
109.5
111.0
106.1
98.6
107.7
106.8
107.5
101.3
99.8
104.2
110.8
105.7
115.3
109.4
108.6
104.9
96.1
105.8
108.4
101.9
100.5
104.5
110.4
102.5
115.8
109.5
109.3
104.3
95.8
103.7
103.8
110.4
102.7
99.0
110.0
109.4
96.5
116.5
109.7
108.5
105.4
94.6
105.0
105.8
110.9
101.2
101.1
101.4
110.8
102.8
117.6
108.7
109.9
105.8
96.2
105.3
107.3
108.8
101.7
102.1
100.9
110.9
104.5
117.6
108.1
107.5
105.2
94.9
103.0
107.5
108.7
102.0
101.2
103.4
110.9
103.2
117.4
108.9
110.2
106.1
95.6
106.0
107.4
109.8
101.8
100.3
104.6
112.5
108.5
118.1
109.6
109.2
105.2
97.4
104.5
105.4
109.8
101.1
100.1
102.9
113.8
108.5
119.1
111.8
113.6
106.1
99.4
104.8
107.3
108.8
102.1
101.2
103.9
114.1
108.3
119.1
112.7
115.3
107.7
99.0
109.0
108.5
109.8
102.9
102.7
103.3
115.1
110.7
119.3
113.6
117.0
106.6
97.8
105.9
108.2
109.1
102.5
101.5
104.4
114.4
109.5
119.3
112.5
115.1
106.2
97.2
105.7
107.7
108.8
103.2
102.0
105.6
97.3
95.3
108.2
108.3
108.4
108.5
108.0
108.1
108.4
108.6
108.9
109.1
108.6
109.0
108.9
109.2
109.0
109.2
109.2
109.5
109.5
109.7
110.0
110.2
110.5
110.7
110.7
110.9
110.6
110.8
97.5
107.4
107.4
107.1
107.3
107.7
106.6
107.6
108.0
107.8
108.4
109.1
109.2
109.3
109.6
24.5
23.3
106.8
106.7
106.5
106.4
107.7
107.4
107.9
107.3
108.8
107.5
108.4
105.8
107.8
107.6
107.5
108.0
107.9
107.5
107.6
107.8
107.5
108.1
107.5
107.4
108.2
107.7
108.8
109.1
12.7
120.6
122.4
117.8
120.7
122.1
122.8
122.9
124.0
124.2
125.3
125.6
126.7
127.2
126.8
12.0
28.4
116.2
109.6
117.3
109.5
113.3
109.3
115.0
108.9
116.2
108.4
114.0
108.1
116.2
109.2
118.2
109.1
117.2
109.4
119.4
110.2
120.2
111.4
120.0
112.1
120.0
112.4
121.0
111.8
74
75
76
Office and computing
~>1
">8
79
Durable consumer parts
Other
Nondurable goods materials
Pulp and paper materials
Other
Converted fuel materials
104.6
SPECIAL AGGREGATES
51
52 Total excluding motor vehicles and parts . . .
53 Total excluding office and computing
machines
54 Consumer goods excluding autos and
55 Consumer goods excluding energy
56 Business equipment excluding autos and
trucks
57 Business equipment excluding office and
58 Materials excluding energy
A50
2.13
Domestic Nonfinancial Statistics • December 1990
INDUSTRIAL PRODUCTION Indexes and Gross Value 1 —Continued
Groups
SIC
code
1987
proportion
1989
avg.
Sept.
Oct.
Nov.
Dec
Jan.
Feb.
Mar.
Apr.
May
June'
July r
Aug/
Sept.''
Index (1987 = 100)
MAJOR INDUSTRY
100.0
108.1
108.2
107.7
108.1
108.6
84.4
26.7
57.7
108.9
106.4
110.1
109.1
105.8
110.6
108.4
106.6
109.3
108.9
106.2
110.1
108.8
105.3
110.4
47.3
2.0
1.4
110.9
103.0
105.3
111.5
102.6
105.7
109.4
103.2
105.6
110.1
104.8
104.4
-6,9
2.5
3.3
1.9
.1
1.4
108.0
109.2
109.3
108.5
109.0
106.5
109.9
109.7
102.9
109.8
107.7
108.6
109.2
106.4
107.6
34
35
5.4
8.6
107.2
121.8
106.0
123.4
357
36
2.5
8.6
137.2
109.5
Total index.
2 Manufacturing
3
Primary processing...
4
Advanced processing ,
Durable
Lumber and products . .
Furniture and fixtures . .
Clay, glass, and stone
products
Primary metals
Iron and steel
Raw steel
Nonferrous
Fabricated metal
products
Nonelectrical machinery
Office and computing
machines
Electrical machinery . . .
Transportation
equipment
Motor vehicles and
parts
Autos and light trucks.
Aerospace and miscellaneous transportation equipment..
Instruments
Miscellaneous
manufacturers....
24
25
32
33
331,2
108.5
108.9
108.8
109.4
110.1
110.3
110.4
110.7
108.1
106.2
109.0
109.6
106.9
110.9
109.8
106.0
111.7
109.5
105.9
111.3
110.3
106.1
112.4
110.8
107.0
112.6
111.0
107.9
112.4
111.2
108.1
112.6
111.4
107.6
113.2
110.4
106.4
105.1
108.6
106.0
105.1
110.7
104.3
104.8
111.9
105.0
105.9
111.1
103.3
107.6
112.6
101.7
108.0
113.4
102.0
108.7
113.2
102.1
109.4
113.6
101.5
108.8
113.8
99.4
106.9
108.2
104.8
104.1
100.6
105.8
108.6
102.6
100.3
97.6
105.8
110.0
105.0
104.6
109.9
105.6
108.0
107.9
110.6
109.0
104.0
107.7
105.4
106.1
105.9
104.3
105.1
106.4
106.7
104.9
105.9
106.4
106.2
105.5
107.6
107.1
106.1
109.5
110.3
111.8
108.3
105.6
110.2
110.6
113.8
109.7
106.5
114.3
117.6
118.5
109.6
105.9
112.5
115.3
112.5
108.6
105.9
119.0
106.9
122.9
106.3
123.8
105.1
123.7
105.6
124.2
105.5
125.2
105.0
125.7
107.1
126.9
106.7
127.5
107.9
128.3
108.2
129.2
107.3
128.6
141.8
110.8
132.8
110.2
141.0
110.1
142.7
110.1
142.7
110.1
144.3
111.0
147.3
112.3
149.3
111.3
149.0
112.4
150.6
112.8
152.6
112.1
154.4
112.4
154.1
112.5
107.5
37
9.8
107.2
108.0
102.1
102.8
104.4
94.7
103.5
107.9
105.1
109.0
111.0
108.9
107.6
110.7
371
4.7
2.3
104.9
105.0
103.2
102.9
99.7
99.9
99.0
97.6
98.7
99.0
76.8
65.7
94.1
91.8
103.5
106.7
95.8
94.6
104.0
104.3
108.0
111.6
102.7
103.8
100.9
100.9
108.5
115.2
-6,9
38
5.1
3.3
109.3
116.4
112.3
116.2
104.3
116.1
106.3
115.6
109.6
114.8
111.0
116.0
111.9
116.2
111.9
115.7
113.4
115.8
113.5
116.5
113.8
115.0
114.5
116.1
113.6
117.1
112.7
117.6
39
1.2
114.9
116.2
116.9
117.0
116.4
117.0
118.1
118.6
118.6
119.1
119.6
120.4
122.7
124.3
20
21
22
23
26
27
28
29
37.2
8.8
1.0
1.8
2.4
3.6
6.4
8.6
1.3
106.4
105.5
99.7
101.9
104.3
103.2
108.5
108.5
106.1
106.0
105.4
93.3
101.5
104.5
102.2
109.4
107.5
108.7
107.2
106.8
99.7
101.9
103.9
105.3
109.3
109.4
106.9
107.3
107.4
98.8
99.3
103.7
104.1
109.6
109.8
109.3
106.7
108.0
98.5
99.8
102.6
103.4
109.6
107.6
104.3
107.5
106.8
101.3
100.6
102.4
103.8
110.7
109.9
108.6
108.3
107.4
102.3
103.0
102.1
105.0
112.1
110.5
112.0
107.2
107.1
100.0
99.8
99.8
102.8
111.4
109.5
109.1
107.5
107.0
98.8
100.9
98.7
105.3
112.0
110.3
106.8
107.4
106.8
97.2
102.7
99.2
104.0
112.8
109.2
104.6
107.6
106.1
95.6
103.6
99.3
104.2
112.0
110.3
106.5
108.1
106.4
97.8
102.8
99.3
107.8
111.8
110.5
110.5
108.1
107.0
95.4
101.8
99.3
105.5
111.6
111.2
109.6
108.3
107.8
94.0
101.2
99.0
105.0
111.5
112.0
110.5
30
31
3.0
.3
108.9
103.7
108.5
103.5
108.8
102.2
109.1
99.4
110.1
103.0
110.7
104.3
109.1
102.9
109.8
103.3
109.0
102.6
110.9
103.5
112.8
102.0
112.3
103.2
112.5
104.8
112.7
103.3
34 Mining
35
Metal
36
Coal
37
Oil and gas extraction . . .
38
Stone and earth minerals
10
11,12
13
14
7.9
.3
1.2
5.7
.7
100.5
141.4
105.7
95.5
113.9
101.6
145.4
109.6
95.9
114.1
100.7
143.2
109.9
94.3
118.0
101.2
145.9
108.1
95.5
115.8
100.1
155.5
103.5
94.0
119.7
101.7
144.8
114.1
94.4
121.2
101.0
143.4
111.9
94.1
120.0
101.1
141.4
112.9
94.6
116.5
102.9
152.7
114.2
95.7
120.2
102.2
148.7
110.0
96.0
119.9
102.2
156.7
113.5
94.6
121.1
103.5
163.7
118.5
94.8
122.0
101.8
162.1
110.2
94.5
120.3
102.1
160.6
113.3
94.4
120.5
39 Utilities . . .
40
Electric.
41
Gas . . . .
,3PT
,3PT
7.6
6.0
1.6
107.1
108.1
103.0
105.9
107.1
101.0
107.4
109.7
99.1
108.3
109.5
103.9
116.1
116.3
115.6
106.8
108.3
101.2
104.0
107.1
92.3
106.2
109.7
93.3
106.7
109.7
95.5
107.1
110.3
95.2
109.7
113.1
97.4
109.4
112.1
99.1
110.8
113.8
99.9
111.8
114.9
100.5
79.8
109.2
109.5
108.9
109.4
109.3
109.9
110.5
110.2
110.3
110.7
111.0
111.5
111.8
111.6
82.0
108.1
108.1
107.7
107.9
107.7
107.1
108.6
108.7
108.3
109.2
109.6
109.7
109.9
110.1
Nondurable
Foods
Tobacco products
Textile mill products . . .
Apparel products
Paper and products . . . .
Printing and publishing .
Chemicals and products
Petroleum products . . . .
Rubber and plastic
products
Leather and products . .
SPECIAL AGGREGATES
42 Manufacturing excluding
motor vehicles and
parts
43 Manufacturing excluding
office and computing
machines
Gross value (billions of 1982 dollars, annual rates)
MAJOR MARKET
44 Products, total
1734.8 1,889.8 1,894.3 1,878.3 1,896.9 1,905.5 1,863.6 1,903.3 1,922.6 1,906.2 1,922.2 1,937.0 1,927.4 1,931.2 1,948.7
45 Final
46
Consumer goods .
47
Equipment
48 Intermediate
1350.9 1,480.1 1,486.2 1,465.6 1,482.8 1,492.5 1,447.9 1,488.3 1,507.5 1,493.9 1,506.0 1,523.4 1,512.9 1,517.2 1,536.4
898.6
878.8
883.2
889.0
864.3
893.4
833.4
884.6
888.6
883.9
885.9
889.1
893.8
888.8
903.3
607.5
594.0
595.5
582.4
593.8
583.6
599.8
614.1
517.5
610.0
620.1
629.6
624.1
628.1
633.1
412.7
414.1
413.0
409.7
408.1
415.7
415.0
415.1
384.0
416.2
412.3
413.6
414.5
414.0
412.4
1. These data also appear in the Board's G.17 (419) release. For requests see
address inside front cover.
A major revision of the industrial production index and the capacity
utilization rates was released in April 1990. See "Industrial Production: 1989
Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April
1990), pp. 187-204.
Selected Measures
2.14
A51
HOUSING A N D CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates e x c e p t as noted.
1989
Item
1987
1988
1990
1989
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July r
Aug.
Private residential real estate activity (thousands of units)
NEW UNITS
1 Permits authorized
2
1-family
3
2-or-more-family
1,535
1,024
511
1,456
994
462
1,339
932
407
1,364
984
380
1,416
984
432
1,739
985
754
1,297
974
323
1,232
912
320
1,108
813
295
1,065
802
263
1,108
796
312
1,082
780
302
1,050
762
288
4 Started
1-family
5
6
2-or-more-family
1,621
1,146
474
1,488
1,081
407
1,376
1,003
373
1,347
1,010
337
1,273
931
342
1,568
1,099
469
1,488
1,154
334
1,307
9%
311
1,216
898
318
1,206
897
309
1,189
889
300
1,153
875
278
1,142
841
301
987
591
397
919
570
350
850
535
315
881
558
323
886
567
319
892
571
321
900
575
325
887
567
320
876
559
317
857
546
311
849
540
309
836
531
305
827
525
302
1,669
1,123
546
1,530
1,085
445
1,423
1,026
396
1,486
1,078
408
1,302
933
369
1,443
1,031
412
1,351
1,041
310
1,378
1,037
341
1,295
942
353
1,363
1,008
355
1,295
946
349
1,280
963
317
1,262
904
358
13 Mobile homes shipped
233
218
198
189
189
195
200
193
189
191
191
184
195
Merchant builder activity in
1-family units
14 Number sold
15 Number for sale, end of period 1
672
366
675
367
650
362
687
363
633
362
613
365
606
366
558
363
533
363
536
360'
559
354
558
350
550
343
104.7
113.3
120.4
125.0
125.2
125.0
126.9
119.4
130.0
125.0
125.0
120.0
120.2
127.9
139.0
148.3
151.4
154.3
151.7
150.9
144.6
153.4
150.6'
150.4
150.2
148.1
18 Number sold
3,530
3,594
3,439
3,560
3,560
3,520
3,400
3,400
3,330
3,300
3,330
3,330
3,500
Price of units sold
(thousands of dollars)
19 Median
20 Average
85.6
106.2
89.2
112.5
93.0
118.0
93.1
117.9
92.5
118.1
96.3
120.0
95.2
118.3
96.3
119.5
95.6
117.8
95.6
118.7
97.5
121.1
98.3
122.0
97.1
120.5
7 Under construction, end of period 1 .
1-family
8
9
2-or-more-family
10 Completed
11
1-family
12 2-or-more-family
Price (thousands of dollars)2
Median
Units sold
Average
17 Units sold
16
EXISTING UNITS ( 1 - f a m i l y )
Value of new construction 3 (millions of dollars)
CONSTRUCTION
21 Total put in place
410,209
422,076
432,068
433,381
431,995
445,959
455,571
457,272 444,737r 443,805' 441,088
442,358
442,529
22 Private
23
Residential
24
Nonresidential, total
Buildings
Industrial
25
Commercial
26
Other
27
28
Public utilities and other
319,641
194,656
124,985
327,102
198,101
129,001
333,514
196,551
136,963
329,847
190,855
138,992
325,011
189,636
135,375
338,078
200,149
137,929
343,118
203,013
140,105
347,366 338,780' 333,992'
206,868 200,234' 196,055'
140,498 138,546' 137,937'
329,556
189,462
140,094
333,904
189,125
144,779
327,415
186,936
140,479
13,707
55,448
15,464
40,366
14,931
58,104
17,278
38,688
18,506
59,389
17,848
41,220
19,134
59,627
18,160
42,071
18,863
57,090
16,612
42,810
19,680
57,376
17,706
43,167
21,072
58,748
16,964
43,321
20,847'
54,698'
18,379'
44,013'
20,405
56,581
19,272
43,836
23,656
57,181
19,801
44,141
20,683
55,789
19,927
44,080
90,566
4,327
26,958
5,519
53,762
94,971
3,579
30,140
4,726
56,526
98,551
3,520
29,502
4,969
60,560
103,534
3,664
30,376
4,916
64,578
106,984
3,552
33,450
5,371
64,611
107,881
3,838
31,901
5,192
66,950
112,453
3,886
37,018
5,559
65,990
109,906 105,957' 109,813'
5,057'
5,099
5,459'
32,374 29,714' 30,658'
4,979'
4,9%
5,504'
67,437 66,207' 68,192'
111,532
5,868
30,311
3,958
71,395
108,454
5,026
28,818
4,403
70,207
115,113
5,040
31,398
4,350
74,325
29 Public
Military
30
Highway
31
Conservation and development...
32
Other
33
1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly
comparable with data in 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.
21,086
57,210
17,646
44,556
21,039'
55,765'
18,227'
43,515'
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 1990
2.15 CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Item
Change from 3 months earlier
(at annual rate)
1989
1989
Sept.
Change from 1 month earlier
1990
Index
level
Sept.
1990
1990
1990
Sept.
Dec.
Mar.
June
Sept.
May
June
July
Aug.
Sept.
CONSUMER PRICES2
(1982-84=100)
1 All items
4.3
6.2
4.9
8.5
3.5
7.9
.2
.5
.4
.8
.8
132.7
2 Food
3 Energy items
4 All items less food and energy
5
Commodities
6
Services
4.9
4.4
4.3
2.7
5.0
5.6
5.5
13.5
5.5
3.7
2.1
-2.0
3.9
.7
5.5
3.7
42.7
5.7
2.9
7.2
.0
-.7
.3
.1
.4
.8
.4
-.7
.3
4.3
.5
.0
.8
.2
6.4
3.9
4.7
3.4
5.7
11.4
14.8
7.5
7.8
7.2
.3
.4
.3
133.2
108.8
137.2
124.5
144.5
4.6
3.0
12.1
4.5
4.0
5.9
4.7
24.4
3.9
3.4
5.0
12.4
-5.3
4.2
2.0
7.1
10.6
24.7
3.5
4.0
.3
-2.9
-14.3
-1.5'
1.7
11.7
-.3
137.4
2.5
6.0
1.6
-.9
13.8
.6
.8
120.3
124.1
82.0
129.0
122.9
3.7
2.9
3.7
1.1
-.4
-1.0
2.5
1.0
-1.1
.7
-2.8
17.6
3.2
1.7
28.6
2.1
19.2
13.2
-15.3
9.1
4.0
-11.5
-38.9
10.9
.6
.4
.1
.6
.6
.3
.7
5.6
PRODUCER PRICES
7
8
9
10
11
(1982=100)
Finished goods
Consumer foods
Consumer energy
Other consumer goods
Capital equipment
12 Intermediate materials 3
13 Excluding energy
14
15
16
Crude materials
Foods
Energy
Other
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers and reflect a
rental equivalence measure of homeownership after 1982.
.5
5.1
.1
-.5
.4
.1'
.2
-.2'
-1.6'
.7
.2'
-.2
.3
1.3
.8
9.5
.2
.3
14.2
4.0
.0'
.1
-.3'
-.1
-.1
.1
1.5
.3
1.9
.6
116.4
121.4
-6.6
293.7
10.9
-2.4'
1.9'
1.1'
.0'
-6.7'
-l.C
1.0
-.1
.9
-.9
25.5
1.8
-1.8
12.4
-.1
110.8
97.9
140.6
.y
-.1
.0
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.
Selected Measures
2.16
A53
GROSS NATIONAL PRODUCT A N D INCOME
Billions o f current dollars e x c e p t as noted; quarterly data are at seasonally adjusted annual rates.
1989
Account
1987
1988
1990
1989
Q3
Q4
Ql
Q2
Q3
GROSS NATIONAL PRODUCT
4,515.6
1
2
3
4
5
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
6 Gross private domestic investment
Fixed investment
7
Nonresidential
8
9
Structures
Producers' durable equipment
10
Residential structures
11
1?
13
Change in business inventories
Nonfarm
14 Net exports of goods and services
15
Exports
16 Imports
17 Government purchases of goods and services
18 Federal
19 State and local
By major type of product
70 Final sales, total
Goods
71
Durable
??
73
Nondurable
Services
74
Structures
25
26 Change in business inventories
Durable goods
77
Nondurable goods
28
4,873.7
5,200.8
5,238.6
5,289.3
5,375.4
5,443.3
5,514.4
3,009.4
423.4
1,001.3
1,584.7
3,238.2
457.5
1,060.0
1,720.7
3,450.1
474.6
1,130.0
1,845.5
3,484.3
487.1
1,137.3
1,859.8
3,518.5
471.2
1,148.8
1,898.5
3,588.1
492.1
1,174.7
1,921.3
3,622.7
478.4
1,179.0
1,965.3
3,700.6
483.1
1,202.8
2,014.7
699.5
671.2
444.9
133.7
311.2
226.3
747.1
720.8
488.4
139.9
348.4
232.5
771.2
742.9
511.9
146.2
365.7
231.0
775.8
746.9
518.1
147.0
371.0
228.9
762.7
737.7
5U.8
147.1
364.7
225.9
747.2
758.9
523.1
148.8
374.3
235.9
759.0
745.6
516.5
147.2
369.3
229.1
759.6
750.9
530.1
150.2
379.9
220.8
28.3
32.3
26.2
29.8
28.3
23.3
28.9
26.2
25.0
24.1
-11.8
-17.0
13.4
13.0
8.8
7.8
-114.7
449.6
564.3
-74.1
552.0
626.1
-46.1
626.2
672.3
-49.3
623.7
673.0
-35.3
642.8
678.1
-30.0
661.3
691.3
-24.9
659.7
684.6
-49.2
662.6
711.8
921.4
381.3
540.2
962.5
380.3
582.3
1,025.6
400.0
625.6
1,027.8
399.2
628.6
1,043.3
399.9
643.4
1,070.1
410.6
659.6
1,086.4
421.9
664.6
1,103.4
425.4
678.0
4,487.3
1,788.4
780.5
1,007.9
2,292.4
434.9
4,847.5
1,935.1
860.2
1,074.9
2,488.6
450.0
5,172.5
2,072.7
906.7
1,166.1
2,671.2
456.9
5,209.7
2,090.2
922.1
1,168.1
2,693.3
455.0
5,264.3
2,085.9
907.4
1,178.6
2,747.5
455.9
5,387.2
2,111.0
919.9
1,191.2
2,791.3
473.0
5,429.9
2,146.6
930.1
1,216.4
2,834.2
462.5
5,505.6
2,160.8
941.6
1,219.2
2,894.4
459.2
28.3
22.9
5.4
26.2
19.9
6.4
28.3
11.9
16.4
28.9
6.6
22.2
25.0
13.2
11.9
-11.8
-21.6
9.8
13.4
.0
13.4
8.8
6.9
1.9
3,845.3
4,016.9
4,117.7
4,129.7
4,133.2
4,150.6
4,155.1
4,173.6
MEMO
29 Total GNP in 1982 dollars
NATIONAL INCOME
30
3,660.3
3,984.9
4,223.3
4,232.1
4,267.1
4,350.3
4,411.3
n.a.
31 Compensation of employees
Wages and salaries
32
33
Government and government enterprises
Other
34
Supplement to wages and salaries
35
Employer contributions for social insurance
36
Other labor income
37
2,686.4
2,249.7
419.4
1,830.3
436.6
227.2
209.4
2,905.1
2,431.1
446.6
1,984.5
474.0
248.5
225.5
3,079.0
2,573.2
476.6
2,096.6
505.8
263.9
241.9
3,095.2
2,586.6
479.9
2,106.7
508.6
265.1
243.5
3,128.6
2,612.7
486.7
2,126.0
515.9
268.4
247.5
3,180.4
2,651.6
497.1
2,154.5
528.8
276.0
252.8
3,232.5
2,696.3
505.7
2,190.6
536.1
279.7
256.4
3,276.1
2,733.3
511.3
2,222.0
542.8
282.7
260.0
323.4
280.6
42.8
354.2
310.5
43.7
379.3
330.7
48.6
368.1
329.5
38.7
381.7
336.0
45.7
404.0
346.6
57.4
401.7
350.8
51.0
398.0
355.2
42.8
38 Proprietors' income 1
39
Business and professional 1
Farm 1
40
41 Rental income of persons 2
13.7
16.3
8.2
5.8
4.1
5.5
4.3
7.6
42 Corporate profits 1
43
Profits before tax 3
Inventory valuation adjustment
44
45
Capital consumption adjustment
308.3
275.3
-19.4
52.4
337.6
316.7
-27.0
47.8
311.6
307.7
-21.7
25.5
306.7
291.4
-6.1
21.4
290.9
289.8
-14.5
15.6
296.8
296.9
-11.4
11.3
306.6
299.3
-.5
7.7
n.a.
n.a.
-30.6
2.3
46 Net interest
328.6
371.8
445.1
456.2
461.7
463.6
466.2
468.9
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).
A54
2.17
Domestic Nonfinancial Statistics • December 1990
PERSONAL INCOME A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1990
1989
Account
1987
1988
1989
Q3
Q4
Q2
Ql
Q3
PERSONAL INCOME AND SAVING
1 Total personal income
3,766.4
4,070.8
4,384.3
4,402.8
4,469.2
4,562.8
4,622.2
4,677.7
? Wage and salary disbursements
Commodity-producing industries
4
5
Distributive industries
6
Service industries
Government and government enterprises
7
2,249.7
649.9
490.3
531.8
648.5
419.4
2,431.1
696.4
524.0
572.0
716.2
446.6
2,573.2
720.6
541.8
604.7
771.4
476.6
2,586.6
722.3
543.2
607.1
777.4
479.9
2,612.7
721.4
540.9
614.6
790.0
486.7
2,651.6
724.6
541.2
627.0
802.9
497.1
2,696.3
731.1
548.1
637.3
822.2
505.7
2,733.3
735.1
551.2
642.4
844.6
511.3
209.4
323.4
280.6
42.8
13.7
91.8
501.3
549.9
282.9
225.5
354.2
310.5
43.7
16.3
102.2
547.9
587.7
300.5
241.9
379.3
330.7
48.6
8.2
114.4
643.2
636.9
325.3
243.5
368.1
329.5
38.7
5.8
115.7
655.2
641.8
328.3
247.5
381.7
336.0
45.7
4.1
118.2
664.9
655.9
334.1
252.8
404.0
346.6
57.4
5.5
120.5
670.5
680.9
347.2
256.4
401.7
350.8
51.0
4.3
122.9
678.0
686.7
347.6
260.0
398.0
355.2
42.8
7.6
124.9
686.4
696.0
350.2
8
9 Proprietors' income
10
Business and professional
11
Farm 1
2
1? Rental income of persons
N
14 Personal interest income
IS Transfer payments
16
Old-age survivors, disability, and health insurance benefits . . .
17
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
172.9
194.1
212.8
214.0
215.8
222.9
224.1
228.6
3,766.4
4,070.8
4,384.3
4,402.8
4,469.2
4,562.8
4,622.2
4,677.7
571.6
591.6
658.8
659.5
669.6
675.1
696.5
709.0
20 EQUALS: Disposable personal income
3,194.7
3,479.2
3,725.5
3,743.4
3,799.6
3,887.7
3,925.7
3,968.6
21
LESS: Personal outlays
3,102.2
3,333.6
3,553.7
3,588.8
3,625.5
3,696.4
3,730.6
3,809.2
22 EQUALS: Personal saving
92.5
145.6
171.8
154.5
174.1
191.3
195.1
159.4
15,759.4
10,310.7
10,946.0
2.9
16,302.4
10,578.3
11,368.0
4.2
16,550.2
10,678.5
11,531.0
4.6
16,578.5
10,739.9
11,538.0
4.1
16,546.0
10,688.2
11,541.0
4.6
16,575.9
10,692.1
11,586.0
4.9
16,554.2
10,672.5
11,564.0
5.0
16,575.1
10,733.5
11,511.0
4.0
27 Gross saving
555.5
656.1
691.5
692.4
674.8
664.8
679.3
n.a.
78
79
30
31
662.6
92.5
83.2
-19.4
751.3
145.6
91.4
-27.0
779.3
171.8
53.0
-21.7
776.0
154.5
53.9
-6.1
786.4
174.1
39.8
-14.5
795.0
191.3
36.7
-11.4
806.7
195.1
40.5
-.5
n.a.
159.4
n.a.
-30.6
303.2
183.8
322.1
192.2
346.4
208.0
351.6
215.9
356.5
216.0
356.7
210.3
359.7
211.4
365.2
213.6
-107.1
-158.2
51.0
-95.3
-141.7
46.5
-87.8
-134.3
46.4
-83.6
-131.7
48.1
-111.6
-150.1
38.5
-130.2
-168.3
38.1
-127.3
-166.0
38.6
19
LESS: Personal tax and nontax payments
MEMO
Per capita (1982 dollars)
73
Gross national product
74
Personal consumption expenditures
Disposable personal income
25
26 Saving rate (percent)
GROSS SAVING
Gross private saving
Personal saving
Undistributed corporate profits
Corporate inventory valuation adjustment
Capital consumption
3?
33 Noncorporate
allowances
34 Government surplus, or deficit ( - ) , national income and
product accounts
35
36
State and local
37 Gross investment
38 Gross private domestic
39
40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
n.a.
n.a.
n.a.
544.9
627.8
674.4
676.1
671.8
665.6
676.1
656.1
699.5
-154.6
747.1
-119.2
771.2
-96.8
775.8
-99.7
762.7
-90.9
747.2
-81.6
759.0
-82.9
759.6
-103.6
-10.6
-28.2
-17.0
-16.2
-3.0
.7
-3.2
SOURCE. Survey of Current Business
(Department of Commerce).
n.a.
Summary Statistics
3.10
U.S. INTERNATIONAL TRANSACTIONS
A55
Summary
M i l l i o n s o f dollars; quarterly data are s e a s o n a l l y a d j u s t e d e x c e p t a s n o t e d . 1
Item credits or debits
1988
1989
Q2P
Ql'
Q2
1 Balance on current account
2
Not seasonally adjusted
Merchandise trade balance 2
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net
Other service transactions, net
Remittances, pensions, and other transfers
U.S. government grants
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )
12 Change in U.S. official reserve assets (increase, - ) .
13
Gold
14
Special drawing rights (SDRs)
15
Reserve position in International Monetary F u n d .
16
Foreign currencies
-162,315
-128,862
Q3
Q4
-110,035
-28,649
-27,528
-28,222
-27,591
-31,620
-29,803
89,349
-119,152
-1,114
17
6,839
-909
-2,621
-26,692
-27,926
-28,746
91,738
-120,484
-1,776
561
7,900
-889
-3,742
-122,545
-1,287
1,995
7,292
-983
-2,402
-21,844
-20,314
-22,575
96,741
-119,316
-1,342
-637
7,423
-855
-3,858
-624
-126,986
320,337
-447,323
-5,452
16,971
-4,261
-10,744
-II4,864
360,465
-475,329
-6,319
-913
26,783
-3,758
-10,963
997
2,969
1,185
-303
574
-47
-659
-5,9%
-3,202
-3,177
0
0
0
0
1,610
91,111
-119,333
-1,667
-1,957
6,203
-962
-2,044
9,149
-3,912
-25,293
-12,095
0
0
0
0
68
-509
2,070
7,588
127
1,025
-5,064
-247
234
-3,164
36,713
52,353
-26,190
-159
-12,004
-6,122
-204
-23
-2,975
-38,654
-21,269
1,877
-9,623
-9,639
-45,4%
-32,658
47
-4,109
-8,776
-83,232
-56,322
-2,847
-7,846
-16,217
-102,953
-50,684
1,391
-21,938
-31,722
22 Change in foreign official assets in United States (increase,
+)
23
U.S. Treasury securities
24
Other U.S. government obligations
25
Other U.S. government liabilities
26
Other U.S. liabilities reported by U.S. banks 3
27
Other foreign official assets
45,210
43,238
1,564
-2,503
3,918
-1,007
39,515
41,741
1,309
-710
-319
-2,506
8,823
333
1,383
332
4,940
1,835
-4,961
-9,726
-97
470
3,820
572
13,003
12,771
190
-350
-251
643
-7,016
-7,342
569
412
28 Change in foreign private assets in United States (increase,
+)
<
U.S. bank-reported liabilities 3
U.S. nonbank-reported liabilities
Foreign private purchases of U.S. Treasury securities, net
Foreign purchases of other U.S. securities, net
Foreign direct investments in United States, net
173,260
89,026
2,863
-7,643
42,120
46,894
181,926
70,235
6,664
20,239
26,353
58,435
205,829
61,199
2,867
29,951
39,568
72,244
7,755
61,133
27,845
-2,175
12,618
10,470
12,375
34 Allocation of SDRs
35 Discrepancy
36
Owing to seasonal adjustments
37
Statistical discrepancy in recorded data before seasonal
adjustment
-407
2,339
9,574
17,055
371
-216
493
94
-535
471
-25,229
-20,806
%,262
-211
337
-73,092
-42,119
5,324
-5,251
-31,046
29
30
31
32
33
-17,922
-26,283
-159,500
250,266
-409,766
-3,530
5,326
9,964
-4,299
-10,276
11,017
26,829
-2,384
-6,144
-7,284
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
-21,668
-12,118
1,202
-7,4%
-9,346
-16,939
165
-8,203
-5,897
-521
-381
-1,278
-126
6,284
3,092
346
1,147
1,953
-254
76,336
36,674
1,732
5,671
10,793
21,466
-24,786
-32,264
290
-835
2,486
5,537
15,673
2,867
-820
-3,133
"2,880
4,919
5,007
0
0
0
0
0
0
0
0
6,790
-8,404
22,443
27,236
-1,697
-2,469
-4,953
6,117
3,560
21,780
2,804
26,330
-1,036
-8,404
22,443
28,933
2,558
18,976
27,366
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)
38
39
9,149
-3,912
-25,293
-12,095
-5,996
-3,202
-3,177
371
47,713
40,225
8,491
-5,431
13,353
-7,428
-7,822
5,137
-9,956
-2,996
10,713
4,532
-1,379
2,953
1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and
38-41.
2. Data are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing. Military
exports are excluded from merchandise data and are included in line 6.
3. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
4. Primarily associated with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
NOTE. Data are from Bureau of Economic Analysis, Survey of Current Business
(Department of Commerce).
A56
3.11
International Statistics • December 1990
U.S. FOREIGN TRADE 1
Millions of dollars; monthly data are seasonally adjusted.
1990
Item
1987
1988
1989
Feb.
1
2
Mar.
Apr.
May
June
July'
Aug."
EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments, f.a.s. value
254,073
322,427
363,812
31,576
33,266
32,058
32,774
34,221
32,125
32,633
GENERAL IMPORTS including
merchandise for immediate
consumption plus entries into
bonded warehouses
Customs value
406,241
440,952
473,211
38,672
41,636
39,364
40,543
39,561
41,244
41,970
-152,169
-118,526
-109,399
-7,096
-8,370
-7,306
-7,770
-5,340
-9,119
-9,336
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-
3.12
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).
U.S. RESERVE ASSETS
Millions of dollars, end of period
1990
Type
1987
1988
1989
Mar.
1 Total
45,798
47,802
74,609
2 Gold stock, including Exchange
Stabilization Fund 1
Apr.
May
June
July
Aug.
Sept/
76,303
76,283
77,028
77,298
77,906
78,909
80,024
11,078
11,057
11,059
11,060
11,060
11,065
11,065
11,064
11,065
11,063
3
Special drawing rights 2 ' 3
10,283
9,637
9,951
10,092
10,103
10,396
10,490
10,699
10,780
10,666
4
Reserve position in International
Monetary Fund 2
11,349
9,745
9,048
8,727
8,687
8,764
8,449
8,686
8,890
8,881
5
Foreign currencies 4
13,088
17,363
44,551
46,424
46,433
46,803
47,294
47,457
48,174
49,414
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
3.13
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.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS'
Millions of dollars, end of period
1990
Assets
1987
1988
1989
Mar.
1 Deposits
Assets held in custody
2 U.S. Treasury securities
3 Earmarked gold3
May
June
July
Aug.
Sept. P
244
347
589
300
402
309
368
279
337
360
195,126
13,919
232,547
13,636
224,911
13,456
250,447
13,458
252,759
13,458
253,691
13,460
255,651
13,433
256,585
13,422
261,051
13,412
261,321
13,419
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 at face value.
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 Data 1
Millions o f dollars, end of period
1990
Asset account
1987
1989
Feb.
Mar.
Apr.
May
June
July
Aug.
All foreign countries
1 Total, all currencies
2 Claims on United States
3 Parent bank
4
Other banks in United States
Nonbanks
5
6 Claims on foreigners
7 Other branches of parent bank
8
Banks
9 Public borrowers
10 Nonbank foreigners
518,618
505,595
545,366
553,815
535,059
535,886
541,439
524,010
531,418'
551,135
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
198,835
157,092
17,042
24,701
300,575
113,810
90,703
16,456
79,606
188,700
145,156
18,064
25,480
313,934
122,457
94,065
15,148
82,264
176,096
135,172
15,511
25,413
308,117
120,488
89,837
15,973
81,819
177,104
133,573
17,965
25,566
307,470
118,835
90,812
16,217
81,606
182,224
140,751
15,647
25,826
306,058
116,640
90,422
16,172
82,824
179,258
138,384
15,166
25,708
293,730
108,464
85,780
16,323
83,163
174,583
133,682
15,239
25,662
305,005'
115,520''
86,007
16,703
86,775
178,236
137,558
14,500
26,178
313,914
121,855
88,822
16,208
87,029
38,064
36,756
45,956
51,181
50,846
51,312
53,157
51,022
51,830'
58,985
12 Total payable in U.S. dollars
350,107
357,573
382,717
375,511
358,543
360,224
363,128
350,310
346,515'
358,106
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
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
191,184
152,294
16,386
22,504
169,690
82,949
48,396
10,961
27,384
180,738
139,920
17,187
23,631
172,132
87,403
46,582
10,529
27,618
168,833
130,350
14,992
23,491
167,616
85,028
43,408
11,110
28,070
169,9%
129,162
17,209
23,625
168,419
84,930
43,814
11,191
28,484
173,887
135,211
14,818
23,858
167,630
83,381
44,449
10,912
28,888
171,551
133,167
14,575
23,809
158,652
76,410
42,918
10,956
28,368
166,294
128,066
14,375
23,853
158,09C
79,408'
39,019
10,652
29,011'
169,714
131,994
13,513
24,207
163,441
82,882
40,725
10,927
28,907
15,656
16,432
21,843
22,641
22,094
21,809
21,611
20,107
22,131'
24,951
11 Other assets
22 Other assets
United Kingdom
23 Total, ail currencies
158,695
156,835
161,947
169,727
167,162
173,127
177,947
167,885
175,254'
184,933
24 Claims on United States
25
Parent bank
26
Other banks in United States
27
Nonbanks
28 Claims on foreigners
29
Other branches of parent bank
30
Banks
31
Public borrowers
32
Nonbank foreigners
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
39,212
35,847
1,058
2,307
107,657
37,728
36,159
3,293
30,477
40,161
36,311
1,365
2,485
110,911
38,410
36,488
3,076
32,937
38,809
34,648
1,301
2,860
109,227
39,636
34,803
3,857
30,931
42,366
37,572
1,262
3,532
111,175
41,613
35,224
3,980
30,358
43,247
39,089
747
3,411
114,800
43,358
35,730
3,943
31,769
39,904
35,924
730
3,250
108,080
38,068
34,194
3,740
32,078
40,418
36,564
894
2,960
114,254'
41,181'
35,085
3,619
34,369
40,092
36,140
1,037
2,915
118,423
43,581
37,623
3,757
33,462
33 Other assets
34 Total payable in U.S. dollars
35 Claims on United States
36
Parent bank
37
Other banks in United States
38
Nonbanks
39 Claims on foreigners
40
Other branches of parent bank
41
Banks
42
Public borrowers
Nonbank foreigners
43
44 Other assets
10,477
10,358
15,078
18,655
19,126
19,586
19,900
19,901
20,582'
26,418
100,574
103,503
103,427
103,752
101,024
107,483
110,186
100,887
103,047'
107,192
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
36,404
34,329
843
1,232
59,062
29,872
16,579
2,371
10,240
37,006
34,462
1,036
1,508
58,763
30,224
15,984
2,266
10,289
35,752
32,697
1,122
1,933
57,166
30,421
13,748
3,074
9,923
39,091
35,663
1,041
2,387
60,165
32,885
14,141
3,131
10,008
39,374
36,712
521
2,141
63,025
34,441
14,635
3,114
10,835
36,158
33,509
552
2,097
57,802
30,050
14,625
2,942
10,185
36,230
33,716
681
1,833
58,278'
31,220'
13,621
2,839
10,598
35,979
33,585
721
1,673
60,390
32,976
14,570
2,8%
9,948
5,575
5,019
7,961
7,983
8,106
8,227
7,787
6,927
8,539'
10,823
Bahamas and Caymans
45 Total, all currencies
46 Claims on United States
47
Parent bank
48
Other banks in United States
49
Nonbanks
50 Claims on foreigners
51
Other branches of parent bank
52
Banks
53
Public borrowers
54
Nonbank foreigners
55 Other assets
56 Total payable in U.S. dollars
160,321
170,639
176,006
164,908
155,145
150,767
154,851
154,354
145,813
150,592
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
124,205
87,882
15,071
21,252
44,168
11,309
22,611
5,217
5,031
114,263
76,475
15,827
21,961
43,162
14,409
19,595
4,753
4,405
105,466
70,535
13,564
21,367
42,393
13,171
19,370
4,684
5,168
102,184
65,084
15,902
21,198
41,467
13,306
18,499
4,490
5,172
105,617
69,807
14,079
21,731
42,147
12,917
19,947
4,350
4,933
107,244
72,115
13,603
21,526
39,812
11,906
18,492
4,393
5,021
99,918
64,748
13,412
21,758
38,393
11,947
16,761
4,307
5,378
103,521
68,507
12,625
22,389
39,595
12,203
17,543
4,554
5,295
4,841
6,926
7,633
7,483
7,286
7,116
7,087
7,298
7,502
7,476
151,434
163,518
170,780
159,484
150,061
145,994
149,467
149,943
140,966
146,000
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 1990
3.14—Continued
1990
Liability account
1987
1988
Feb.
Apr.
May
June
July
Aug.
All foreign countries
57 Total, all currencies
518,618
505,595
545,366
553,815
535,059
535,886
541,439
524,010
531,418'
551,135
58 Negotiable CDs
59 To United States
60
Parent bank
61
Other banks in United States
62
Nonbanks
30,929
161,390
87,606
20,355
53,429
28,511
185,577
114,720
14,737
56,120
23,500
197,239
138,412
11,704
47,123
23,620
181,164
119,967
11,990
49,207
21,767
173,675
114,170
10,799
48,706
24,113
168,669
109,642
11,782
47,245
25,452
169,791
109,831
10,272
49,688
23,504
169,769
113,151
9,092
47,526
21,805'
163,117
105,243
9,454
48,420
23,342
167,307
109,715
10,264
47,328
63 To foreigners
64
Other branches of parent bank
65
Banks
66
Official institutions
67
Nonbank foreigners
68 Other liabilities
304,803
124,601
87,274
19,564
73,364
21,496
270,923
111,267
72,842
15,183
71,631
20,584
2%, 850
119,591
76,452
16,750
84,057
27,777
317,318
126,786
77,449
20,637
92,446
31,713
309,756
124,084
75,017
17,704
92,951
29,861
313,446
120,405
77,875
20,683
94,483
29,658
315,058
120,722
78,681
19,710
95,945
31,138
299,951
113,653
73,896
17,637
94,765
30,786
314,503
119,476
77,940
19,718
97,369
31,993'
320,852
124,510
79,366
17,777
99,199
39,634
69 Total payable in U.S. dollars
361,438
367,483
396,613
385,634
369,306
368,626
369,505
358,681
355,782'
365,759
70 Negotiable CDs
71 To United States
72
Parent bank
73
Other banks in United States
74
Nonbanks
26,768
148,442
81,783
18,951
47,708
24,045
173,190
107,150
13,468
52,572
19,619
187,286
132,563
10,519
44,204
18,783
169,669
113,487
10,684
45,498
17,084
162,606
108,128
9,296
45,182
19,601
157,579
103,252
10,415
43,912
20,579
157,851
103,389
8,855
45,607
18,928
158,173
106,818
7,741
43,614
16,5^
150,785
98,770
7,884
44,131
18,013
155,068
103,252
8,791
43,025
75 To foreigners
76
Other branches of parent bank
77
Banks
78
Official institutions
79
Nonbank foreigners
80 Other liabilities
177,711
90,469
35,065
12,409
39,768
8,517
160,766
84,021
28,493
8,224
40,028
9,482
176,460
87,636
30,537
9,873
48,414
13,248
183,378
90,360
28,741
11,740
52,537
13,804
176,939
86,908
27,639
9,248
53,144
12,677
178,035
84,090
29,207
11,909
52,829
13,411
177,888
84,415
28,265
11,480
53,728
13,187
168,642
78,646
27,434
9,066
53,496
12,938
174,616
81,332
28,045
10,613
54,626
13,862'
177,009
84,139
29,000
9,669
54,201
15,669
United Kingdom
81 Total, all currencies
158,695
156,835
161,947
169,727
167,162
173,127
177,947
167,885
175,254'
184,933
82 Negotiable CDs
83 To United States
84 Parent bank
85
Other banks in United States
86
Nonbanks
26,988
23,470
13,223
1,536
8,711
24,528
36,784
27,849
2,037
6,898
20,056
36,036
29,726
1,256
5,054
19,656
32,686
23,752
2,115
6,819
18,266
32,780
22,970
1,827
7,983
20,535
33,931
23,339
1,841
8,751
21,846
33,755
23,179
1,847
8,729
19,672
32,291
23,158
1,615
7,518
17,795'
32,320
21,952
1,626
8,742
19,128
33,365
23,399
1,535
8,431
87 To foreigners
88
Other branches of parent bank
89
Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities
98,689
33,078
34,290
11,015
20,306
9,548
86,026
26,812
30,609
7,873
20,732
9,497
92,307
27,397
29,780
8,551
26,579
13,548
101,565
28,074
32,110
10,758
30,623
15,820
101,160
29,848
29,116
9,184
33,012
14,956
103,362
28,581
31,026
10,829
32,926
15,299
106,138
29,193
31,580
11,409
33,956
16,208
99,279
26,506
28,575
10,263
33,935
16,643
107,533
28,944
32,420
11,314
34,855
17,606'
108,947
28,967
34,647
9,902
35,431
23,493
93 Total payable in U.S. dollars
102,550
105,907
108,178
106,416
103,544
109,708
110,595
101,530
104,372'
108,532
94 Negotiable CDs
95 To United States
96
Parent bank
97
Other banks in United States ,
98
Nonbanks
24,926
17,752
12,026
1,308
4,418
22,063
32,588
26,404
1,752
4,432
18,143
33,056
28,812
1,065
3,179
16,910
28,817
22,513
1,807
4,497
15,660
29,383
22,219
1,552
5,612
17,936
30,386
22,446
1,553
6,387
19,012
29,666
22,339
1,456
5,871
17,233
28,160
22,190
1,325
4,645
14,831'
27,967
21,208
1,175
5,584
16,183
28,779
22,423
1,228
5,128
99 To foreigners
100 Other branches of parent bank
101
Banks
102
Official institutions
103 Nonbank foreigners
104 Other liabilities
55,919
22,334
15,580
7,530
10,475
3,953
47,083
18,561
13,407
4,348
10,767
4,173
50,517
18,384
12,244
5,454
14,435
6,462
53,751
18,556
11,920
6,717
16,558
6,938
52,095
19,182
9,976
5,192
17,745
6,406
54,371
18,799
11,233
6,703
17,636
7,015
55,163
18,589
11,007
7,264
18,303
6,754
49,672
16,199
9,911
5,305
18,257
6,465
54,591
17,408
11,251
6,515
19,417
6,983'
54,827
17,347
13,042
5,463
18,975
8,743
Bahamas and Caymans
105 Total, all currencies
160,321
170,639
176,006
164,908
155,145
150,767
154,851
154,354
145,813
150,592
106 Negotiable CDs
107 To United States
108 Parent bank
109 Other banks in United States .
110
Nonbanks
885
113,950
53,239
17,224
43,487
953
122,332
62,894
11,494
47,944
678
124,859
75,188
8,883
40,788
671
113,137
64,085
8,198
40,854
522
108,003
61,528
7,310
39,165
524
101,024
55,311
8,544
37,169
528
103,655
57,136
6,991
39,528
535
103,592
58,880
5,984
38,728
548
95,746
51,257
6,228
38,261
553
100,519
55,989
7,039
37,491
111 To foreigners
112 Other branches of parent bank
113
Banks
114 Official institutions
115
Nonbank foreigners
116 Other liabilities
43,815
19,185
10,769
1,504
12,357
1,671
45,161
23,686
8,336
1,074
12,065
2,193
47,382
23,414
8,823
1,097
14,048
3,087
48,726
25,110
8,059
1,290
14,267
2,374
44,314
20,778
7,983
1,078
14,475
2,306
46,741
22,446
8,617
1,247
14,431
2,478
48,410
25,535
8,154
962
13,759
2,258
47,613
24,184
8,969
960
13,500
2,614
47,010
24,560
8,120
999
13,331
2,509
46,922
24,965
7,469
943
13,545
2,598
117 Total payable in U.S. dollars . . . .
152,927
162,950
171,250
160,212
150,758
146,259
149,707
149,680
140,377
145,567
Summary Statistics
3.15
A59
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1990
Item
1988'
1989'
Feb.'
1 Total1
2
3
4
5
6
7
8
9
10
11
12
Apr.'
May'
June'
July'
Aug."
304,132
By area
Western Europe 1
Canada
Latin America and Caribbean
Other countries 6
312,457
304,434
302,096
307,820
308,397
309,541
312,312
320,218
31,519
103,722
36,481
76,985
33,896
73,099
35,553
73,039
36,642
69,454
36,747
72,322
37,471
71,804
38,596
72,694
39,286
72,803
152,429
523
15,939
179,264
568
19,159
178,149
576
18,714
174,411
580
18,513
179,476
3,596
18,652
177,092
3,620
18,616
178,016
3,644
18,606
178,747
3,668
18,607
185,549
3,692
18,888
123,752
9,513
10,030
151,887
1,403
7,548
By type
Liabilities reported by banks in the United States
U.S. Treasury bills and certificates 3
U.S. Treasury bonds and notes
Marketable
Nonmarketable 4
U.S. securities other than U.S. Treasury securities
133,417
9,482
8,740
153,338
1,030
6,453
132,779
7,905
8,260
147,232
1,025
7,233
135,691
8,315
9,151
141,068
936
6,936
141,102
7,809
9,066
142,899
895
6,047
142,405
6,550
9,147
141,490
1,074
7,731
146,928
6,961
10,200
136,325
946
8,183
149,467
8,415
9,975
135,693
917
7,848
151,792
11,083
11,190
136,801
1,697
7,655
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
3.16
Mar.'
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.
LIABILITIES TO A N D CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies 1
Millions o f dollars, end o f period
1989
Item
1986
1987
1990
1988
Sept.'
1 Banks' own liabilities
2 Banks' own claims
3
Deposits
4
Other claims
5 Claims of banks' domestic customers 2
29,702
26,180
14,129
12,052
2,507
1. Data on claims exclude foreign currencies held by U.S. monetary authorities.
55,438
51,271
18,861
32,410
551
74,980
68,983
25,100
43,884
364
Dec.'
Mar.
June
73,755
70,328
22,962
47,366
3,044
67,805
65,127
20,491
44,636
3,507
63,105
60,999
21,456
39,543
1,190
68,140
66,626
21,046
45,580
928
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
3.17
International Statistics • December 1990
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Reported by Banks in the United States 1
Millions of dollars, end of period
1990
Holder and type of liability
1987
1988
1989
Feb.
Mar.'
Apr.'
May
June'
July'
Aug."
1 All foreigners
618,874
685,339
736,627r
697,815'
703,562
702,923
715,613'
707,464
719,552
737,579
2 Banks' own liabilities
3 Demand deposits
4 Time deposits
5
Other 3
6
Own foreign offices 4
470,070
22,383
148,374
51,677
247,635
514,532
21,863
152,164
51,366
289,138
577,247'
22,080'
168,735'
67,650'
318,782'
539,568'
20,847'
156,437'
58,611'
303,674'
543,292
20,474
154,865
60,658
307,295
547,193
21,096
148,984
65,990
311,123
552,438'
20,578
151,063'
65,367'
315,430'
544,1%
20,365
151,525
64,646
307,660
554,208
19,735
154,491
66,130
313,853
569,421
20,729
156,619
73,781
318,293
148,804
101,743
170,807
115,056
159,380
91,100
158,246
88,032
160,270
88,015
155,730
83,649
163,175
88,908
163,267
90,082
165,344
91,975
168,158
93,601
16,776
30,285
16,426
39,325
19,526
48,754
18,655
51,560
18,809
53,446
18,132
53,948
18,531
55,737
17,865
55,320
17,509
55,860
16,985
57,572
11 Nonmonetary international and regional
organizations
4,464
3,224
4,772
3,765
4,896
5,727
4,558
5,018
4,112
4,288
12 Banks' own liabilities
13 Demand deposits
14 Time deposits
15 Other 3
2,702
124
1,538
1,040
2,527
71
1,183
1,272
3,156
96
927
2,133
2,218
55
624
1,539
3,334
156
1,137
2,041
3,781
52
2,025
1,704
2,913
28
773
2,112
3,619
29
1,416
2,174
2,790
46
1,038
1,707
2,329
244
1,2%
782
16 Banks' custody liabilities5
U.S. Treasury bills and certificates 6
17
18 Other negotiable and readily transferable
instruments 7
19 Other
1,761
265
698
57
1,616
197
1,547
160
1,562
191
1,947
190
1,645
174
1,399
147
1,322
148
1,959
1,095
1,497
0
641
0
1,417
2
1,387
0
1,371
0
1,740
17
1,463
8
1,253
0
1,159
15
819
45
7 Banks' custody liabilities5
8
U.S. Treasury bills and certificates 6
9
Other negotiable and readily transferable
instruments 7
10 Other
20 Official institutions9
120,667
135,241
113,466'
106,994'
108,592
106,096
109,069'
109,275
111,290
112,089
21 Banks' own liabilities
22
Demand deposits
23
Time deposits
24
Other 3
28,703
1,757
12,843
14,103
27,109
1,917
9,767
15,425
31,092'
2,196
10,495'
18,401'
30,705'
1,654
10,694'
18,358'
31,711
1,826
9,730
20,155
33,864
2,066
10,939
20,859
33,395'
1,644
11,178
20,572'
33,378
1,613
10,179
21,586
34,850
1,520
11,509
21,820
35,250
1,916
11,054
22,281
25 Banks' custody liabilities5
26
U.S. Treasury bills and certificates 6
27
Other negotiable and readily transferable
instruments 7
Other
28
91,965
88,829
108,132
103,722
82,373
76,985
76,289
73,099
76,881
73,039
72,231
69,454
75,674
72,322
75,8%
71,804
76,440
72,694
76,839
72,803
2,990
146
4,130
280
5,028
361
2,892
298
3,671
171
2,605
173
3,158
195
3,650
443
3,5%
150
3,685
351
414,280
459,523
514,721'
485,669'
489,851
492,708
503,137'
4%, 903
507,149
524,364
371,665
124,030
10,898
79,717
33,415
247,635
409,501
120,362
9,948
80,189
30,226
289,138
454,206'
135,425'
10,325'
90,557
34,543'
318,782'
422,180'
118,506'
10,069'
74,971'
33,465'
303,674'
423,858
116,562
9,625
75,389
31,548
307,295
426,048
114,925
9,864
68,703
36,357
311,123
432,438'
117,009'
9,673
71,159'
36,177'
315,430'
424,810
117,151
9,503
73,243
34,405
307,660
433,738
119,885
9,236
74,889
35,760
313,853
449,365
131,079
9,804
78,365
42,910
318,286
42,615
9,134
50,022
7,602
60,514
9,367
63,489
9,342
65,993
9,359
66,660
9,374
70,699
11,578
72,093
13,502
73,411
13,961
74,999
13,855
5,392
28,089
5,725
36,694
5,124
46,023
4,918
49,229
5,390
51,244
5,437
51,850
5,616
53,504
5,757
52,833
5,760
53,690
5,366
55,779
29 Banks
10
30 Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
33
Time deposits 2
34
Other 3
35
Own foreign offices 4
36 Banks' custody liabilities5
37
U.S. Treasury bills and certificates 6
38
Other negotiable and readily transferable
instruments 7
39
Other
40 Other foreigners
79,463
87,351
103,669'
101,386'
100,223
98,391
98,848'
96,268
97,001
%,838
41 Banks' own liabilities
42
Demand deposits
43
Time deposits
44
Other 3
67,000
9,604
54,277
3,119
75,396
9,928
61,025
4,443
88,793'
9,463'
66,757'
12,573
84,465'
9,069'
70,148
5,249'
84,389
8,867
68,608
6,914
83,500
9,114
67,318
7,069
83,692'
9,232
67,953'
6,506
82,389
9,220
66,687
6,481
82,831
8,932
67,056
6,843
82,478
8,765
65,905
7,808
45 Banks' custody liabilities5
46
U.S. Treasury bills and certificates 6
47
Other negotiable and readily transferable
instruments 7
Other
48
12,463
3,515
11,956
3,675
14,877
4,551
16,921
5,431
15,834
5,425
14,891
4,632
15,157
4,834
13,879
4,630
14,170
5,173
14,360
5,849
6,898
2,050
5,929
2,351
7,958
2,368
9,457
2,033
8,378
2,031
8,350
1,909
8,293
2,030
7,205
2,044
6,993
2,004
7,115
1,3%
7,314
6,425
7,203
8,457
7,634
7,183
7,282
6,429
5,911
5,713
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
1990
Area and country
1987
1988
1989
Feb.
Mar.
Apr.
May
June'
July'
Aug."
1 Total
618,874
685,339
736,627'
697,815'
703,562'
702,923'
715,613'
707,464
719,552
737,579
2 Foreign countries
614,411
682,115
731,855r
694,050'
698,666'
697,195'
711,055'
702,446
715,440
733,291
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
231,912
1,155
10,022
2,200
285
24,777
6,772
672
14,599
5,316
1,559
903
5,494
1,284
34,199
1,012
111,811
529
8,598
138
591
237,453
1,233
10,611
1,415
570
26,903
7,578
1,028'
16,169
6,613
2,401
2,407
4,364
1,491
34,496
1,818
102,362
1,474
13,563
350
608'
224,837'
1,609'
11,707'
1,244
614
21,844'
8,718
1,035'
11,977
8,226
997
2,285
4,280
1,468
32,962'
886
99,771'
1,402
12,168'
376
1,266'
225,210'
1,493'
12,3^
1,760
431
21,90C
7,488
906
12,728
9,454
2,619
2,385
4,911
1,374'
33.89C
1,039
96,966'
1,613
10,494'
141
1,299
229,675
1,549
10,128
2,244'
464
24,263
8,798'
879
14,138
7,731
1,454
2,354
4,230
1,689'
33,244
1,459'
99,376
1,599
12,239'
446
1,392'
236,551'
1,373
9,507
2,152
314
23,103
8,030
860
16,347
8,166
1,582
2,359
4,535
1,655'
35,260
1,641
104,624
1,934
11,423'
158
1,529
234,112
1,531
10,047
2,411
387
23,566
8,076
833
16,779
7,617
2,420
3,082
4,391
1,769
34,780
1,596
98,530
2,169
12,360
75
1,695
235,831
1,497
10,564
2,581
485
23,106
7,571
873
17,107
5,967
1,792
3,073
4,919
1,586
33,797
1,654
100,856
2,435
14,373
257
1,339
244,759
1,543
11,380
2,237
465
24,223
7,559
937
17,070
6,149
2,186
2,891
4,402
2,013
34,655
2,081
107,923
2,260
13,182
46
1,556
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
Yugoslavia
20
21
Other Western Europe
22
U.S.S.R
23
Other Eastern Europe 2
30,095
21,062
18,865'
21,331'
18,538'
19,485'
19,90C
19,956
20,049
21,116
25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
Colombia
32
33
Cuba
34
Ecuador
35
Guatemala
36 Jamaica
37 Mexico
38
Netherlands Antilles
39 Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other
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
271,146
7,804
86,863
2,621
5,314
113,840
2,936
4,374
10
1,379
1,195
269
15,185
6,420
4,353
1,671
1,898
9,147
5,868
310,948'
7,304
99,341'
2,884
6,334
138,263
3,212
4,653
10
1,391
1,312
209
15,423'
6,310
4,361
1,984
2,284
9,468
6,206'
306,320'
7,496
95,055'
2,239
7,128
136,135'
3,143'
4,610
10
1,325
1,362
217
15,824'
6,470
4,743
1,975
2,397
9,661'
6,531'
313,158'
8,036
98,492'
2,308
7,281'
139,120'
3,261
4,510
9
1,337
1,403
245
15,269'
6,412
4,766
1,836
2,513
9,916'
6,446'
309,109'
8,235
90,331'
2,807
6,729
143,264
3,418
4,404
9
1,334
1,451
224
15,085'
6,460
4,749
1,703
2,575
9,673'
6,659'
315,674'
8,346
98,658'
2,514
6,088
142,129'
3,517
4,471
10
1,367
1,473
215
15,116
6,806
4,540'
1,532'
2,560
9,717
6,614'
312,782
7,993
99,255
3,072
6,110
137,069
3,449
4,508
11
1,368
1,473
224
16,141
6,628
4,544
1,473
2,529
10,292
6,645
316,555
8,160
98,290
2,825
6,082
142,266
3,540
4,473
15
1,348
1,523
221
16,055
6,810
4,384
1,405
2,560
9,827
6,772
319,992
7,842
101,647
2,661
6,865
141,383
3,552
4,343
11
1,348
1,497
213
16,337
6,668
4,624
1,369
2,526
10,228
6,878
44
121,288
147,838
156,201'
132,258'
133,230'
131,027'
129,147'
126,265
134,114
137,558
1,162
21,503
10,180
582
1,404
1,292
54,322
1,637
1,085
1,345
13,988
12,788
1,895
26,058
12,248
699
1,180
1,461
74,015
2,541
1,163
1,236
12,083
13,260
1,773'
19,588'
12,416'
780
1,281
1,243
81,184'
3,215'
1,766'
2,093
13,37C
17,491'
1,473'
17,937'
ll.lSC
762
1,174
894
65,136'
2,563'
1,265'
2,524
12,621'
14,758'
1,578'
15,579'
11,615'
1,033
1,545
1,497
66.43C
2,331'
1,216'
1,930
12,452'
16,024'
1,844'
15,44C
12,277'
1,013
1,560
1,311'
65,581'
2,120'
1,193'
1,595
11,626
15,466
1,785'
15,174'
12,896'
1,148
1,192
1,227'
62,101'
2,049'
1,191'
1,973
13,049'
15,362
1,871
11,006
12,369
966
1,520
1,202
62,367
2,121
1,329
2,125
13,076
16,313
1,890
12,610
13,315
908
1,367
1,112
66,293
2,157
1,313
2,745
14,047
16,358
2,319
12,638
13,823
806
1,120
1,115
68,663
2,316
1,349
2,232
14,744
16,432
3,945
1,151
194
202
67
1,014
1,316
3,991
911
68
437
85
1,017
1,474
3,823
686
78
205
86
1,121'
1,648
3,778
722
95
261
77
1,110
1,513
3,644
601
80
277
74
1,048
1,564'
3,722
595
111
236
70
936
1,775
3,778
646
86
241
66
1,016
1,722
3,650
592
81
318
41
890
1,728
3,411
583
95
239
38
873
1,584
5,063
1,505
77
331
43
1,072
2,035
64 Other countries
65
Australia
66
All other
4,070
3,327
744
6,165
5,293
872
4,564'
3,867
697'
5,524'
4,798
726'
4,887'
3,994
893'
4,176'
3,469
707'
6,005'
5,250
755'
5,680
5,052
628
5,479
4,891
588
4,803
4,122
681
67 Nonmonetary international and regional
organizations
68
International 5
69 Latin American regional
Other regional 6
70
4,464
2,830
1,272
362
3,224
2,503
589
133
4,772
3,825
684
263
3,765
2,765
655
345
4,896
3,634
949
313
5,727
4,147
1,123
457
4,558
3,393
912
253
5,018
3,883
920
215
4,112
2,981
812
319
4,288
3,151
567
571
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 International Settlements, which is included in "Other
Western Europe."
A61
A62
3.18
International Statistics • December 1990
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States'
Payable in U.S. Dollars
Millions of dollars, end of period
1990
Area and country
1987
1988
1989
Feb.
Mar.'
Apr.'
May'
June'
July'
Aug."
1
459,877
491,165
533,992'
499,631'
487,989
488,844
489,028
489,245
488,782
494,078
2 Foreign countries
456,472
489,094
530,553'
495,557'
484,036
484,452
484,443
485,050
484,492
490,662
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
116,928
483
8,515
483
1,065
13,243
2,329
433
7,936
2,541
455
261
1,823
1,977
3,895
1,233
65,706
1,390
1,152
1,255
754
119,024'
415
6,478
582
1,027
16,146
2,865
788
6,662
1,904
609
376
1,930
1,773
6,141
1,071
65,527'
1,329
1,302
1,179
921
104,327'
429
7,063
635
1,218
16,392
2,762
773
5,377
1,567
672
288
2,040
2,158
4,922
1,088
52,286'
1,158
1,271
1,322
905
104,298
500
6,361
608
1,153
15,631
2,783
664
5,050
2,142
777
273
2,241
2,236
5,056
1,123
53,100
1,157
1,183
1,356
904
105,154
592
6,330
750
1,025
16,087
2,476
622
4,230
2,027
918
381
1,726
2,206
4,826
1,120
55,604
1,121
970
1,322
820
103,615
420
6,765
1,004
931
16,224
3,045
597
4,758
1,968
761
407
1,897
2,711
4,999
1,138
52,333
1,128
786
945
800
102,394
337
5,611
590
1,035
14,794
2,870
514
5,133
2,041
745
540
2,084
2,614
5,249
1,230
53,577
1,095
804
754
777
102,360
399
6,744
503
1,112
13,746
2,591
529
4,615
1,754
687
543
2,125
3,361
4,297
1,186
54,803
1,070
960
565
769
106,089
287
6,625
676
1,177
14,273
2,740
610
4,500
1,647
716
411
2,107
3,384
3,736
1,377
58,546
1,029
694
624
928
3 Europe
4 Austria
i
Belgium-Luxembourg
6 Denmark
7 Finland
8 France
9 Germany
10 Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
21 Other Western Europe 2
22
U.S.S.R
23 Other Eastern Europe 3
24 Canada
25,368
18,889
15,450'
16,793'
15,081
15,234
16,355
16,492
16,391
15,432
25 Latin America and Caribbean
26 Argentina
27 Bahamas
28 Bermuda
29 Brazil
30 British West Indies
31 Chile
32 Colombia
33 Cuba
34
Ecuador
35 Guatemala 4
36 Jamaica 4
37
Mexico
38 Netherlands Antilles
39 Panama
40 Peru
41 Uruguay
42
Venezuela
43
Other Latin America and Caribbean
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
214,264
11,826
66,954
483
25,735
55,888
5,217
2,944
1
2,075
198
212
24,637
1,306
2,521
1,013
910
10,733
1,612
230,392'
9,270
77,921
1,315
23,749
68,709'
4,353
2,784
1
1,688
197
297
23,376'
1,921
1,740
771
928
9,647
1,726
220,252'
8,718
71,891
401
23,210
70,052'
4,208
2,610
0
1,570
200
274
21,37c
1,726'
1,688
752
935
8,956
1,692'
210,443
8,189
69,095
425
21,885
72,412
4,079
2,720
0
1,536
208
265
14,268
1,692
1,722
733
926
8,528
1,760
200,361
8,025
63,937
443
21,849
67,706
3,715
2,649
0
1,527
207
260
14,734
1,759
1,733
721
886
8,405
1,805
205,853
7,689
70,508
774
21,793
67,564
3,630
2,624
0
1,503
206
260
14,529
1,630
1,643
679
876
8,251
1,693
208,825
7,600
66,913
1,830
20,699
74,590
3,453
2,596
0
1,523
188
258
14,665
1,722
1,598
683
842
8,136
1,527
200,224
7,166
66,923
1,988
20,186
66,425
3,493
2,541
1
1,515
196
262
15,120
1,873
1,491
661
843
8,064
1,476
203,796
7,099
67,754
2,476
18,892
70,784
3,405
2,703
2
1,506
208
258
14,937
1,631
1,508
631
818
7,661
1,523
44
106,096
130,881
157,444'
145,303'
145,906
155,553
150,172
148,963
158,082
157,749
968
4,592
8,218
510
580
1,363
68,658
5,148
2,071
496
4,858
8,635
762
4,184
10,143
560
674
1,136
90,149
5,213
1,876
848
6,213
9,122
634
2,776
11,128
621
651
813
111,270
5,323'
1,344
1,140
10,149
11,594
619
1,824
6,605
892
611
774'
108,352
4,902'
1,163
1,052
9,475'
9,035
599
2,016
7,418
721
604
761
108,554
5,042
1,204
992
8,929
9,066
674
1,890
8,965
588
560
746
117,560
5,011
1,221
1,073
8,376
8,891
517
1,941
9,563
579
599
738
108,245
5,186
1,351
1,202
9,577
10,674
537
1,946
9,271
802
801
777
107,671
5,128
1,357
1,279
10,816
8,576
554
1,583
9,434
852
814
738
114,683
5,515
1,342
1,267
12,318
8,981
586
2,025
9,472
625
835
785
114,808
5,596
1,369
1,245
10,658
9,746
57 Africa
58
Egypt
59 Morocco
60
South Africa
61 Zaire
62 Oil-exporting countries 6
63
Other
4,742
521
542
1,507
15
1,003
1,153
5,718
507
511
1,681
17
1,523
1,479
5,890
502
559
1,628
16
1,648
1,537
5,967
493
588
1,629
17
1,749
1,491
5,984
474
581
1,648
25
1,749
1,507
5,953
491
5%
1,632
19
1,705
1,509
5,913
488
587
1,639
20
1,665
1,515
5,787
469
565
1,573
21
1,649
1,511
5,557
421
544
1,560
20
1,604
1,408
5,660
449
539
1,571
19
1,586
1,496
64 Other countries
65
Australia
66 All other
3,129
2,100
1,029
2,413
1,520
894
2,354
1,781
573
2,914
2,015
900
2,324
1,632
692
2,195
1,551
644
2,535
1,657
878
2,590
1,712
878
1,878
1,422
456
1,937
1,303
634
67 Nonmonetary international and regional
organizations
3,404
2,071
3,439
4,074
3,954
4,393
4,585
4,195
4,291
3,416
46
47
48
49
50
51
52
53
54
55
56
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle East oil-exporting countries
Other Asia
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
2. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
3. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
4. Included in "Other Latin America and Caribbean" through March 1978.
5. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
6. Comprises Algeria, Gabon, Libya, and Nigeria.
7. Excludes the Bank for International Settlements, which is included in
"Other Western Europe."
Nonbank-Reported
3.19
Data
BANKS' OWN A N D DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States 1
Payable in U.S. Dollars
Millions o f dollars, end o f period
1990
Type of claim
1987
1988
1989'
Feb.'
Mar.'
Apr.'
May'
488,844
51,355
274,354
125,318
72,633
52,685
37,818
489,028
50,804
275,178
125,908
72,566
53,342
37,138
July'
Aug. p
488,782
47,593
274,722
129,114
73,189
55,925
37,353
494,078
46,406
273,502
137,5%
79,774
57,821
36,574
40,137
n.a.
June'
1 Total
497,635
538,689
592,401
2 Banks' own claims on foreigners
Foreign public borrowers
3
4
Own foreign offices
5
Unaffiliated foreign banks
Deposits
6
7
Other
8
All other foreigners
459,877
64,605
224,727
127,609
60,687
66,922
42,936
491,165
62,658
257,436
129,425
65,898
63,527
41,646
533,992
60,073
295,980
134,854
78,184
56,670
43,084
37,758
3,692
47,524
8,289
58,409
12,834
53.163
16,788
58,890
15,499
26,696
25,700
30,983
22,020
27,451
7,370
13,535
14,591
14,354
15,940
23,107
19,596
12,753
13,563
12,943
40,909
45,565'
45,675
9 Claims of banks' domestic customers 3 ...
11
548,135
541,152
499,631
57,129
284,014
120,311
67,737
52,574
38,177
487,989
51,755
274,886
123,186
70,551
52,635
38.162
489,245
49,139
280,016
121,706
68,309
53,397
38,384
Negotiable and readily transferable
12 Outstanding collections and other
13 MEMO: C u s t o m e r l i a b i l i t y o n
Dollar deposits in banks abroad,
reported by nonbanking business
enterprises in the United States . . . .
45,645
39,272
41,517
40,182
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
42,112
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States 1
Payable in U.S. Dollars
Millions of dollars, end o f period
1989
Maturity; by borrower and area
1986
1987
1990
1988
Sept.
1 Total
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
By borrower
Maturity of 1 year or less 2
Foreign public borrowers
All other foreigners
Maturity over 1 y e a r
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3
Maturity of over 1 y e a r
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3
Mar.
June''
232,295
235,130
233,184
234,112
237,648'
213,670
211,062
160,555
24,842
135,714
71,740
39,103
32,637
163,997
25,889
138,108
71,133
38,625
32,507
172,634
26,562
146,071
60,550
35,291
25,259
170,682'
24,102
146,581'
63,429'
38,134'
25,295
177,8%'
23,483
154,413'
59,752'
35,822
23,931'
160,087
22,725
137,362
53,584
30,050
23,533
157,458
19,421
138,037
53,603
31,069
22,534
61,784
5,895
56,271
29,457
2,882
4,267
59,027
5,680
56,535
35,919
2,833
4,003
55,909
6,282
57,991
46,224
3,337
2,891
54,525'
6,236
52,227
50,445
3,514
3,735
53,912'
5,886
52,989'
57,766
3,225
4,118
48,368
5,694
46,719
51,744
3,165
4,3%
49,101
5,579
44,323
50,729
2,991
4,734
6,737
1,925
56,719
4,043
1,539
777
6,6%
2,661
53,817
3,830
1,747
2,381
4,666
1,922
47,547
3,613
2,301
501
4,662'
2,459
49,046
4,203
2,475
584
4,121'
2,353
45,818'
4,142
2,633
684
4,407
2,702
37,668
5,479
2,764
564
4,326
2,860
35,924
7,036
2,739
718
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
Dec.
2. Remaining time to maturity,
3. Includes nonmonetary international and regional organizations.
A63
A64
3.21
International Statistics • December 1990
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks 1 - 2
Billions of dollars, end of period
1988
Area or country
1986
1989
1990
1987
June
1 Total
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
June
386.5
382.4
351.9
354.0
346.3
346.1
340.0
346.2
338.3'
334.4'
322.9'
156.6
8.4
13.6
11.6
9.0
4.6
2.4
5.8
70.9
5.2
25.1
159.7
10.0
13.7
12.6
7.5
4.1
2.1
5.6
68.8
5.5
29.8
150.7
9.2
10.9
10.6
6.3
3.2
1.9
5.6
70.4
5.3
27.3
148.7
9.5
10.3
9.2
5.6
2.9
1.9
5.2
67.6
4.9
31.6
152.7
9.0
10.5
10.3
6.8
2.7
1.8
5.4
66.2
5.0
34.9
145.4
8.6
11.2
10.2
5.2
2.8
2.3
5.1
65.6
4.0
30.5
145.1
7.8
10.8
10.6
6.1
2.8
1.8
5.4
64.5
5.1
30.2
146.4
6.9
11.1
10.4
6.8
2.4
2.0
6.1
63.7
5.9
31.0
152.9r
6.3
11.7
10.5
7.4
3.1
2.0
7.1
67.2'
5.4
32.2
147.1'
6.6
10.5
11.2
6.0
3.1
2.1
6.3
64.0'
4.8
32.6'
139.7'
6.2
10.3
11.2
5.5
2.7
2.3
6.4
59.9'
5.2'
29.9
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
26.1
1.7
1.7
1.4
2.3
2.4
.9
5.8
2.0
1.5
3.0
3.4
26.4
1.9
1.7
1.2
2.0
2.2
.6
8.0
2.0
1.6
2.9
2.4
24.0
1.6
1.1
1.2
2.1
1.9
.4
7.2
1.8
1.7
2.8
2.2
23.0
1.6
1.2
1.3
2.1
2.0
.4
6.3
1.6
1.9
2.7
1.8
21.0
1.5
1.1
1.1
1.8
1.8
.4
6.2
1.5
1.3
2.4
1.8
21.1
1.4
1.1
1.0
2.1
1.6
.4
6.6
1.3
1.1
2.2
2.4
21.2
1.7
1.4
1.0
2.3
1.8
.6
6.2
1.1
1.1
2.1
1.9
21.0
1.5
1.1
1.1
2.4
1.4
.4
6.9
1.2
1.0
2.1
2.1
20.7
1.5
1.1
1.0
2.5
1.4
.4
7.1
1.2
.7
2.0
1.6
23.1
1.5
1.1
1.1
2.6
1.7
.4
8.3
1.3
1.0
2.0
2.1
22.6
1.5
1.1
.9
2.7
1.4
.8
7.9
1.4
1.1
1.9
1.9
25 OPEC countries 3
26
Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
30
African countries
19.4
2.2
8.7
2.5
4.3
1.8
17.4
1.9
8.1
1.9
3.6
1.9
17.0
1.8
8.0
1.8
3.5
1.9
17.9
1.8
7.9
1.8
4.6
1.9
16.6
1.7
7.9
1.7
3.4
1.9
16.2
1.6
7.9
1.7
3.3
1.7
16.1
1.5
7.5
1.9
3.4
1.6
16.2
1.5
7.4
2.0
3.5
1.9
17.1
1.3
7.0
2.0
5.0
1.7
15.5'
1.2
6.1
2.1
4.3'
1.8
15.4
1.2
6.0
2.0
4.4
1.8
31 Non-OPEC developing countries
99.6
97.8
91.8
87.2
85.3
85.9
83.4
81.2
77.5
68.8'
67.7'
9.5
25.3
7.1
2.1
24.0
1.4
3.1
9.5
24.7
6.9
2.0
23.5
1.1
2.8
9.5
23.7
6.4
2.2
21.1
.9
2.6
9.3
22.4
6.3
2.1
20.4
.8
2.5
9.0
22.4
5.6
2.1
18.8
.8
2.6
8.5
22.8
5.7
1.9
18.3
.7
2.7
7.9
22.1
5.2
1.7
17.7
.6
2.6
7.6
20.9
4.9
1.6
17.2
.6
2.9
6.3
19.0
4.6
1.8
17.7
.6
2.8
5.5
17.5
4.3
1.8
12.8'
.5
2.7
5.1
17.2
3.7
1.7
13.(K
.5
2.4
.3
.3
4.5
3.1
.7
5.9
1.7
4.1
1.3
1.0
.3
3.8
3.5
.6
5.3
1.8
3.7
1.1
1.2
.2
3.6
3.6
.6
5.6
1.8
3.9
1.3
1.1
2 G-10 countries and Switzerland
3
Belgium-Luxembourg
France
4
5 Germany
Italy
6
7
Netherlands
Sweden
8
Switzerland
9
10 United Kingdom
11 Canada
12 Japan
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
.4
4.9
1.2
1.5
6.7
2.1
5.4
.9
.7
.3
8.2
1.9
1.0
5.0
1.5
5.2
.7
.7
.4
4.9
2.3
1.0
5.9
1.5
4.9
1.1
.8
.2
3.2
2.0
1.0
6.0
1.7
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
6.1
1.7
4.4
1.0
.8
.3
5.2
2.4
.8
6.6
1.6
4.4
1.0
.8
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 4
.7
.9
.1
1.6
.6
.9
.0
1.3
.6
.9
.1
1.2
.5
.8
.0
1.2
.4
.9
.0
1.1
.5
.9
.0
1.1
.6
.9
.0
1.1
.5
.8
.0
1.0
.4
.9
.0
1.0
.4
.9
.0
.9
.5
.9
.0
.9
52 Eastern Europe
53
U.S.S.R
54
Yugoslavia
55
Other
3.5
.1
2.0
1.4
3.2
.3
1.8
1.1
3.3
.4
1.9
1.0
3.1
.4
1.8
1.0
3.6
.7
1.8
1.1
3.5
.7
1.7
1.1
3.4
.6
1.7
1.1
3.5
.8
1.7
1.1
3.5
.7
1.6
1.3
3.4
.8
1.4
1.3
3.0
.4
1.4
1.2
56 Offshore banking centers
57
Bahamas
58
Bermuda
59 Cayman Islands and other British West Indies
60
Netherlands Antilles
61
Panama
62
Lebanon
63
Hong Kong
64
Singapore
65
Others 6
61.5
22.4
.6
12.3
1.8
4.0
.1
11.1
9.2
.0
54.5
17.3
.6
13.5
1.2
3.7
.1
11.2
7.0
.0
43.0
8.9
1.0
10.3
1.2
3.0
.1
11.6
6.9
.0
47.3
12.9
.9
11.9
1.2
2.6
.1
10.5
7.0
.0
44.2
11.0
.9
12.9
1.0
2.5
.1
9.6
6.1
.0
48.5
15.8
1.1
12.0
.9
2.2
.1
9.6
6.8
.0
43.1
11.0
.7
10.8
1.0
1.9
.1
10.4
7.3
.0
49.2
11.4
1.3
15.3
1.1
1.5
.1
10.7
7.8
.0
36.6
5.5
1.7
8.9
2.3
1.4
.1
9.7
7.0
.0
42.y
9.3
.9
10.9
2.6
1.3
.1
9.8
8.0
.0
38.9
8.5
2.2
7.3
2.3
1.4
.1
10.0
7.0
.0
66 Miscellaneous and unallocated 7
19.8
23.2
22.2
26.7
22.6
25.0
27.4
28.5
29.8
33.2'
35.5'
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
1.3
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
3.22
Data
A65
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States 1
Millions of dollars, end o f period
1990
1989
Type, and area or country
1986
1987
1988'"
Mar/
June
Sept.
Dec.'
Mar.
June p
1 Total
25,587
28,302
32,938
38,513
38,460'
36,523'
38,429
38,518'
39,855
2 Payable in dollars
3 Payable in foreign currencies
21,749
3,838
22,785
5,517
27,320
5,618
32,706
5,806
33,372'
5,088'
31,685'
4,838
33,585
4,845
34,229'
4,289'
35,072
4,783
By type
4 Financial liabilities
Payable in dollars
5
6
Payable in foreign currencies
12,133
9,609
2,524
12,424
8,643
3,781
14,507
10,608
3,900
18,744
14,648
4,096
18,427'
14,551'
3,875'
17,117'
13,289'
3,829
18,380
14,478
3,902
17,802'
14,589'
3,213'
19,769
16,097
3,672
13,454
6,450
7,004
12,140
1,314
15,878
7,305
8,573
14,142
1,737
18,431
6,505
11,926
16,712
1,719
19,768
7,094
12,674
18,058
1,711
20,034'
6,510'
13,524
18,821'
1,213
19,406'
6,902'
12,503
18,397'
1,009
20,050
7,373
12,676
19,107
943
20,716'
7,275'
13,440
19,639'
1,076
20,086
6,850
13,237
18,975
1,111
7,917
270
661
368
542
646
5,140
8,320
213
382
551
866
558
5,557
9,962
289
359
699
880
1,033
6,533
13,854
320
224
561
874
954
10,721
12,575'
357
257'
618'
835'
938'
9,402'
11,197'
308
242'
590'
853
799'
8,207'
11,622
340
258
523
946
541
8,742
10,925'
333
217'
482'
865
529'
8,212'
12,026
347
156
601
934
667
8,759
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
By area or country
Financial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
19
Canada
399
360
388
616
626'
575'
573
476'
329
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,944
614
4
32
1,146
22
0
1,189
318
0
25
778
13
0
839
184
0
0
645
1
0
677
189
0
0
471
15
0
1,262'
165
7'
0
661'
17
0
1,367'
186
7'
0
743'
4
0
1,268
157
17
0
635
6
0
1,814'
237
0
0
1,0%'
5
0
2,508
249
0
0
1,717
4
0
27
28
29
Asia
Japan
Middle East oil-exporting countries 2 .
1,805
1,398
8
2,451
2,042
8
3,312
2,563
3
3,591
2,825
1
3,863'
3,100
12
3,878
3,130
2
4,814
3,963
2
4,483'
3,445
3
4,848
3,846
5
30
Africa
1
1
4
1
2
0
5
3
3
2
4
2
2
0
3
0
3
1
67
100
4
2
97
97
100
102
55
4,446
101
352
715
424
385
1,341
5,516
132
426
909
423
559
1,599
7,305
158
455
1,699
587
417
2,065
7,834
122
552
1,373
667
446
2,585
7,778
114
535
1,190
688
447
2,709
8,319
137
806
1,183
548
531
2,703
8,883
178
871
1,362
699
621
2,618
9,133'
233
881
1,143
688
583
2,925'
8,304
295
926
959
606
607
2,434
1,405
1,301
1,217
1,163
1,133
1,189
1,067
1,124
1,260
924
32
156
61
49
217
216
864
18
168
46
19
189
162
1,090
49
286
95
34
217
114
1,253
35
426
103
31
250
114
1,673'
34
388
541
42
235'
131
1,086'
27
305
113
30
220'
107
1,187
41
308
100
27
304
154
1,304'
37
516
116
18
241'
85
1,277
22
412
106
29
285
119
5,080
2,042
1,679
6,565
2,578
1,964
6,915
3,094
1,385
7,318
3,059
1,520
7,045'
2,708
1,482'
7,086'
2,674
1,442'
7,038
2,772
1,401
6,885'
2,624
1,393'
6,970
3,088
1,125
31
32
33
34
35
36
37
38
39
40
Oil-exporting countries
All other 4
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
48
49
50
Asia
Japan
..,
Middle East oil-exporting countries •
51
52
Africa
Oil-exporting countries
619
197
574
135
576
202
700
272
762'
263'
648'
255'
844
307
753'
263'
885
277
53
All other 4
980
1,057
1,328
1,499
1,642
1,077
1,031
1,517
1,390
1. For a description of the changes in the International Statistics tables, see
July 1979 Bulletin, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.
A66
3.23
International Statistics • December 1990
CLAIMS ON UNAFFILIATED FOREIGNERS
United States 1
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1989
Type, and area or country
1986
1987
1990
1988'
Mar/
June
Sept.
Dec.'
Mar.'
June"
1 Total
36,265
30,964
33,874
31,873
34,OSS'
31,738'
31,085
29,488
31,050
2 Payable in dollars
3 Payable in foreign currencies
33,867
2,399
28,502
2,462
31,494
2,381
29,514
2,359
31,871'
2,217'
29,513'
2,225
28,706
2,379
27,334
2,154
28,746
2,304
26,273
19,916
19,331
585
6,357
5,005
1,352
20,363
14,894
13,765
1,128
5,470
4,656
814
21,739
15,642
14,543
1,099
6,097
5,320
777
19,734
14,594
13,680
914
5,140
4,202
938
21,617'
16,500'
15,581'
9 ^
5,117'
4,380'
737'
18,827'
12,143'
11,278'
866'
6,684'
5,822'
862
17,388
10,435
9,460
975
6,953
6,199
754
16,286
10,458
9,564
893
5,828
5,140
688
17,494
9,871
8,774
1,097
7,623
6,929
694
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
9,992
8,783
1,209
10,600
9,535
1,065
12,136
11,061
1,075
12,139
10,877
1,262
12,471'
l l ^
1,432
12,912'
11,427'
1,485
13,697
12,084
1,612
13,202
11,610
1,593
13,556
11,865
1,691
14
15
9,530
462
10,081
519
11,630
505
11,632
507
11,911'
560
12,414'
498
13,047
650
12,630
573
13,043
513
10,744
41
138
116
151
185
9,855
9,531
7
332
102
350
65
8,467
10,169
18
203
120
348
218
8,929
9,018
22
193
112
384
241
7,769
8,616'
161
176'
149'
297
68'
7,468'
7,253'
166
166'
120'
292
111
6,169'
6,861
28
153
195
303
95
5,850
6,727
22
199
507
315
123
5,358
9,179
127
142
94
332
138
8,139
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
4,808
2,844
2,325
2,175
2,568'
2,356'
1,934
1,803
1,993
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
9,291
2,628
6
86
6,078
174
21
7,012
1,994
7
63
4,433
172
19
8,139
1,846
19
47
5,742
151
21
7,504
2,183
25
49
4,826
117
25
9,319'
1,875'
33
78
6,923'
114
31
8,315'
l,699 r
33
70
6,125'
105
36
7,428
1,516
7
224
5,268
94
20
6,903
1,599
4
79
4,806
152
21
5,404
920
3
84
4,001
153
20
31
32
33
Asia
Japan
Middle East oil-exporting countries 2
1,317
999
7
879
605
8
844
574
5
895
571
8
995'
525'
8
801
440
7
831
439
8
763
416
7
815
473
6
34
35
Africa
Oil-exporting countries 3
85
28
65
7
106
10
89
8
80
8
75
8
140
12
67
11
62
8
28
33
155
52
40'
27
195
23
41
3,725
133
431
444
164
217
999
4,180
178
650
562
133
185
1,073
5,170
189
670
667
212
344
1,323
5,094
214
786
689
164
264
1,301
5,290
205
770
675
413
231
1,371
5,423
220
824
688
3%
222
1,396
6,160
241
948
689
478
305
1,570
6,025
219
957
690
450
270
1,690
6,118
207
902
661
475
235
1,654
36
37
38
39
40
41
42
43
All other
4
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
934
936
983
1,124
1,181
1,278
1,058
1,091
1,108
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,857
28
193
234
39
412
237
1,930
19
170
226
26
368
283
2,239
36
230
298
22
461
227
2,118
34
234
277
23
485
213
2,100
13
238
314
30
438
229
2,131
10
270
232
33
508
188
2,161
57
323
286
36
508
146
2,046
22
242
226
38
524
187
2,199
17
283
230
46
593
220
52
53
54
Asia
Japan
Middle East oil-exporting countries 2
2,755
881
563
2,915
1,158
450
2,979
946
446
3,113
1,042
437
3,143'
998
430
3,299'
1,177
406
3,513
1,185
508
3,249
1,061
432
3,369
1,046
412
55
56
Africa
Oil-exporting countries 3
500
139
401
144
434
122
394
95
407
111
398'
87'
418
107
425
89
402
98
222
238
331
297
350
381
386
367
360
57
All other
4
1. For a description of the changes in the International Statistics tables, see
July 1979 Bulletin, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
Securities Holdings and Transactions
3.24
A67
FOREIGN TRANSACTIONS IN SECURITIES
M i l l i o n s o f dollars
1990
Transactions, and area or country
1988
1990
1989
Jan.Aug.
Feb.
Mar/
May'
Apr/
June'
July'
Aug."
17,447
16,080
20,652
21,950
-1,298
U.S. corporate securities
STOCKS
181,185
183,185
1 Foreign purchases
2 Foreign sales
213,535'
203,537
126,641
133,627
13,465'
13,692
16,430
19,117
11,457
12,356
15,231
17,717
18,211
18,584
3 Net purchases, or sales (—)
-2,000
9,998'
-6,986
-226'
-2,687
-899
-2,486
-372
1,367
4 Foreign countries
-1,825
10,232'
-7,149
-227'
-2,733
-937
-2,543
-336
1,315
-1,335
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
-3,350
-281
218
-535
-2,243
-954
1,087
1,238
-2,474
1,365
1,922
188
121
471'
-708
-830
167
-3,274'
3,729
-845
3,089
3,531
3,586'
3,340
131
268
-5,010
-747
-128
-274
-2,113
-1,605
28
-773
-770
-449
-458
-11
-164
-141'
-157
4'
-38
-242
184'
51
-178
93
-30
-104
-34
12
-990
7
105
48
-441
-720
-163
-208
-425
-921
-764
1
-27
-666
-85
6
-25
-221
-99
-212
-27
116
-55
-92
-2
-91
-1,048
-189
-57
-20
-347
-200
-101
90
-593
-904
-750
0
13
-590
32
-66
-83
-198
-114
88
-14
-85
243
212
-7
30
-12
-25
-41
-30
-170
255
174
-90
-36
1,056
851
13
211
-1,379
-175
-119
-107
-253
-637
330
-234
187
-69
22
16
-186
-176
-234
163
1
46
38
57
-37
52
37
19 Foreign purchases
86,381
120,540
81,395
10,297
9,248
8,355
8,467
12,572
10,923
12,009
20 Foreign sales
58,417
86,510
66,721
8,059'
8,636
7,643
6,347
8,456
7,519
12,252
21 Net purchases, or sales ( - )
27,964
34,031
14,674
2,238'
612
712
2,120
4,116
3,404
-243
22 Foreign countries
28,506
33,678
14,916
2,211'
451
705
2,195
4,084
3,366
-213
17,239
143
1,344
1,514
505
13,084
711
1,931
-178
8,900
7,686
-8
-89
19,848
372
-238
850
-165
18,459
1,116
3,686
-182
9,063
6,331
56
91
9,653
488
-173
112
687
8,444
1,839
3,356
193
-41
308
82
-167
16'
9
-253
15
55'
326'
474
883
100
7%
1,103
36
-93'
340
5
-15
-11
-185
585
183
313
36
-461
-419
-8
48
864
-58
-40
-2
59
1,013
353
411
-2
-993
-1,044
48
24
781
108
-39
33
83
495
198
508
251
440
331
8
9
3,380
293
82
37
186
2,761
292
578
-120
11
-131
2
-59
1,996
54
33
37
570
1,145
70
273
17
999
930
-4
15
1,080
-40
172
45
-238
925
91
-103
-176
-986
-632
-1
-118
-542
353
-242
160
6
-76
32
39
-31
BONDS 2
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
27
Foreign securities
37 Stocks, net purchases, or sales ( - ) 3
-1,959
-13,097'
-7,542
-981
-91
-869
-2,422
-2,756
-1,117
-77
38
39
75,356
77,315
109,789
122,886'
88,182
95,725
10,483'
11,465'
11,775
11,866
8,368
9,237
9,785
12,207
11,027
13,783
11,376
12,493
12,383
12,460
40 Bonds, net purchases, or sales ( - )
41
Foreign purchases
42
Foreign sales
-7,434
218,521
225,955
-6,049
234,215
240,264
-15,204
186,558
201,763
-159
20,671
20,830
-9,605
22,375
31,981
-1,830
20,184
22,015
-1,867
25,879
27,746
-2,030
25,658
27,688
-324
23,443
23,767
55
29,836
29,781
43 Net purchases, or sales ( - ) , of stocks and bonds
-9,393
-19,145'
-22,747
-1,140'
-9,697
-2,699
-4,289
-4,786
-1,441
-22
44 Foreign countries
-9,873
-19,178'
-21,306
-1,229
-8,096
-2,849
-4,085
-4,333
-1,471
-464
45
46
47
48
49
50
-7,864
-3,747
1,384
979
-54
-571
-17,811'
-4,180
426
2,540'
93
-246
-7,960
-4,420
-6,230
-1,834
-111
-751
-1,227'
-144
161
-307
9
277
-306
-1,323
-6,648
693
-1
-511
-666
-1,797
-171
-341
-28
154
-1,888
-721
252
-1,403
6
-331
-3,646
-219
418
-1,073
8
180
-383
-328
-222
-125
-83
-330
-1,243
170
-54
611
-8
60
-1,440
89
-1,601
150
-205
-453
30
442
Foreign purchases
Foreign sales
Europe
Canada
Latin America and Caribbean
Africa
Other countries
51 Nonmonetary international and
regional organizations
480
33
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.
3. As a result of the merger of a U.S. and U . K . company in July 1989, the
former stockholders of the U.S. company received $5,453 million in shares of the
new combined U.K. company. This transaction is not reflected in the data above.
A68
3.25
International Statistics • December 1990
MARKETABLE U.S. TREASURY BONDS A N D NOTES
Foreign Transactions
Millions of dollars
1990
Country or area
1990
1989
1988
Jan.Aug.
Feb.
Mar/
Apr/
May r
June r
July'
Aug."
Transactions, net purchases or sales ( - ) during period 1
1 Estimated total2
48,832
54,269^
7,604
901'
-8,446
3,224
-2,744
3,554
5,496
2 Foreign countries 2
48,170
52,367'
7,890
1,242'
-8,251
4,215
-3,154
3,249
5,339
4,020
14,319
923
-5,268
-356
-323
-1,074
9,640
10,786
-10
3,761
36,286'
1,048
7,904
-1,141
693'
1,097
20,198
6,508'
-21
701
6,886
184
2,283
108
20
-1,251
-646
6,168
17
-2,742
1,776'
-337
1,672
-1,400
159'
-5
1,641'
46'
0
-2,137
-2,361
-256
-475
-411
39
-251
-326
-684
0
-1,383
6,150
458
633
749
264
422
2,271
1,344
6
110
-3,787
115
306
-263
-254
-189
-3,545
43
0
-1,752
2,587
270
-1,061
313
-34
-19
1,894
1,223
0
367
3,657
180
-1
196
133
-799
1,051
2,897
0
1,418
-2,125
-391
1,424
1,253
-266
-128
-3,776
-252
11
1,177
713
-109
1,130
-308
27,603
21,750
-13
1,786
490
311
-297
475
13,335'
116
1,439
7,208
-49
3,499
3,758
-3,067
-5,167
93
-488
91
-48
16
123
2,149'
768'
13
-650
672
38
270
365
-4,785
-5,351
-43
-351
2,134
-49
-35
2,218
-3,880
-6,111
-4
-294
478
71
610
-204
2,026
2,234
-8
-110
914
48
1,021
-154
-1,086
-469
52
416
1,934
-1
1,060
874
-1,677
161
17
-9
1,319
0
295
1,023
3,354
2,376
57
239
661
1,106
-31
1,902
1,473
231
-286
18
40
-341
-286
-11
-196
-92
-26
-991
-528
74
410
403
25
305
462
-109
158
-25
25
641
444
25
48,170
26,624
21,546
52,367'
26,835'
25,532'
7,890
6,285
1,605
1,242'
-1,493'
2,735'
-8,251
-3,738
-4,512
4,215
5,066
-851
-3,154
-2,384
-770
3,249
924
2,325
5,339
731
4,608
4,020
6,802
-2,781
1,963
1
8,148
-1
529
-0
1,020
0
668
0
-188
0
-439
0
-2,095
0
-323
0
3 Europe 2
Belgium-Luxembourg
4
5 Germany
6
Netherlands
7
Sweden
8
Switzerland 2
9
United Kingdom
10 Other Western Europe
11 Eastern Europe
12 Canada
13 Latin America and Caribbean
14 Venezuela
15 Other Latin America and Caribbean
16 Netherlands Antilles
17
18 Japan
19
20 All other
21 Nonmonetary international and regional organizations
22
International
23
Latin America regional
Memo
24 Foreign countries 2
25
Official institutions
26
Other foreign
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.
970
0
4,661
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
3.26
A69
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per year
Country
Country
6.5
10.25
12.66
10.5
Oct.
Oct.
Oct.
Oct.
1989
1989
1990
1989
France
Germany, Fed. Rep. of.
Italy
Japan
Netherlands
1. As of the end of February 1981, the rate is that at which the Bank of France
discounts Treasury bills for 7 to 10 days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either discounts
3.27
Month
effective
Month
effective
Month
effective
Austria..
Belgium .
Canada..
Denmark
Rate on Oct. 30, 1990
Rate on Oct. 30, 1990
Rate on Oct. 30, 1990
Country
9.5
6.0
12.5
6.0
7.0
Apr. 1990
Oct. 1989
May 1990
Aug. 1990
Oct. 1989
8.0
6.0
Norway
Switzerland
.
United Kingdom'
June 1983
Oct. 1989
or makes advances against eligible commercial paper and/or government commercial banks or brokers. For countries with more than one rate applicable to
such discounts or advances, the rate shown is the one at which it is understood the
central bank transacts the largest proportion of its credit operations.
FOREIGN SHORT-TERM INTEREST RATES
Percent per year, averages of daily figures
1990
Country, or type
1987
1988
1989
Apr.
1
2
3
4
5
6
7
8
9
10
Eurodollars
United Kingdom
Canada
Germany
Switzerland
Netherlands
France
Italy
Belgium
Japan
May
June
July
Aug.
Sept/
Oct.
7.07
9.65
8.38
3.97
3.67
7.85
10.28
9.63
4.28
2.94
9.16
13.87
12.20
7.04
6.83
8.44
15.17
13.59
8.20
9.01
8.35
15.11
13.77
8.27
8.78
8.23
14.95
13.76
8.24
8.71
8.09
14.92
13.58
8.17
8.81
7.99
14.95
13.13
8.36
8.71
8.07
14.88
12.63
8.39
8.11
8.06
14.02
12.58
8.51
7.88
5.24
8.14
11.15
7.01
3.87
4.72
7.80
11.04
6.69
3.96
7.28
9.27
12.44
8.65
4.73
8.46
9.92
12.11
10.19
6.62
8.37
9.70
12.09
9.90
6.84
8.26
9.94
11.33
9.63
6.86
8.16
9.91
11.38
9.30
7.02
8.44
10.03
11.49
9.30
7.15
8.42
10.24
10.65
9.04
7.41
8.39
9.92
11.40
8.89
7.53
NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate.
A70
3.28
International Statistics • December 1990
FOREIGN EXCHANGE RATES 1
Currency units per dollar
1990
Country/currency
1987
1988
1989
May
1
2
3
4
3
6
Australia/dollar^
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 2
14
13
16
17
18
19
20
Italy/lira
Japan/yen
Malaysia/ringgit
Netherlands/guilder 2
New Zealand/dollar
Norway/krone
Portugal/escudo
21
22
23
24
23
26
27
28
29
30
Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound 2
June
July
Aug.
Sept/
Oct.
70.137
12.649
37.358
1.3259
3.7314
6.8478
78.409
12.357
36.785
1.2306
3.7314
6.7412
79.186
13.236
39.409
1.1842
3.7673
7.3210
76.106
11.699
34.325
1.1747
4.7339
6.3349
77.903
11.843
34.602
1.1730
4.7339
6.4080
79.076
11.520
33.715
1.1570
4.7339
6.2339
80.871
11.044
32.280
1.1448
4.7339
6.0033
82.512
11.044
32.282
1.1583
4.7342
5.9961
80.060
10.719
31.373
1.1600
4.7339
5.8117
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
4.2963
6.3802
1.8808
162.60
7.8008
16.213
141.80
3.9270
5.5989
1.6630
163.82
7.7877
17.325
161.21
3.9561
5.6613
1.6832
164.78
7.7855
17.421
159.28
3.8386
5.4924
1.6375
160.59
7.7704
17.412
163.75
3.7051
5.2680
1.5702
154.82
7.7707
17.347
170.86
3.7113
5.2575
1.5701
154.93
7.7647
17.860
170.91
3.6187
5.1032
1.5238
153.17
7.7722
18.074
176.04
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
1,372.28
138.07
2.7079
2.1219
59.354
6.9131
157.53
1,221.93
154.04
2.7024
1.8704
57.293
6.4477
147.08
1,235.60
153.70
2.7104
1.8946
58.254
6.4700
147.90
1,199.65
149.04
2.7051
1.8452
59.147
6.2925
143.93
1,157.07
147.46
2.6956
1.7692
61.294
6.0810
138.71
1,172.87
138.44
2.6959
1.7699
62.077
6.0735
139.18
1,141.62
129.59
2.6995
1.7180
61.129
5.8241
134.41
2.1059
2.0385
825.94
123.54
29.472
6.3469
1.4918
31.753
25.775
163.98
2.0133
2.2770
734.52
116.53
31.820
6.1370
1.4643
28.636
25.312
178.13
1.9511
2.6214
674.29
118.44
35.947
6.4559
1.6369
26.407
25.725
163.82
1.8589
2.6468
711.85
103.98
40.023
6.0560
1.4198
26.961
25.928
167.74
1.8471
2.6592
718.07
103.91
40.018
6.08%
1.4250
27.391
25.876
171.03
1.8193
2.6253
718.75
100.41
40.018
5.9470
1.3924
27.163
25.706
180.98
1.7905
2.5734
718.26
%.90
40.007
5.7754
1.3076
27.291
25.579
190.13
1.7671
2.5712
717.87
98.49
39.953
5.7663
1.3069
27.302
25.376
187.94
1.7257
2.5445
717.76
95.59
40.285
5.6411
1.2818
27.288
25.130
194.56
96.94
92.72
98.60
92.04
92.43
89.68
86.55
86.10
83.43
MEMO
31 United States/dollar 3
1. Averages of certified noon buying rates in New York for cable transfers.
Data in this table also appear in the Board's G.5 (405) release. For address, see
inside front cover.
2. Value in U.S. cents.
3. Index of weighted-average exchange value of U.S. dollar against the
currencies of 10 industrial countries. The weight for each of the 10 countries is the
1972-76 average world trade of that country divided by the average world trade of
all 10 countries combined. Series revised as of August 1978 (see Federal Reserve
Bulletin, vol. 64, August 1978, p. 700).
A71
Guide to Tabular Presentation,
Statistical Releases, and Special Tables
GUIDE TO TABULAR
Symbols and
c
e
p
r
*
PRESENTATION
Abbreviations
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)
General
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
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
Reference
Issue
December 1990
Anticipated schedule of release dates for periodic releases
SPECIAL TABLES—Published Irregularly, with Latest B U L L E T I N
Reference
Title and Date
Issue
Assets and liabilities of commercial
March 31, 1989
June 30, 1989
September 30, 1989
December 31, 1989
Terms of lending at commercial
November 1989
February 1990
May 1990
August 1990
December
January
February
June
follow.
1989
1990
1990
1990
All
All
All
All
March
September
December
December
1990
1990
1990
1990
A79
A73
All
All
March
August
September
December
1990
1990
1990
1990
A84
All
A78
A82
February
March
September
October
1990
1990
1990
1990
A78
A88
A82
All
banks
banks
Pro forma balance sheet and income statements for priced service
June 30, 1989
September 30, 1989
March 31, 1990
June 30, 1990
Special tables
Page
banks
Assets and liabilities of U.S. branches and agencies of foreign
September 30, 1989
December 31, 1989
March 31, 1990
June 30, 1990
Page
A92
operations
A72
Special Tables • December 1990
t4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 7-11, 1990'A
A. Commercial and Industrial Loans
Characteristic
Amount of
loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Weighted
average
maturity 2
Days
Loan rate (percent)
Weighted
average
effective 3
Standard
Interquartile
range 5
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
ALL BANKS
1 Overnight 7
12,476,765
6,754
8.80-9.47
65.4
7,033,812
4,843,216
2,190,596
736
1,063
438
16
16
15
9.63
9.56
9.78
9.00-9.94
9.00-9.80
9.01-10.31
82.0
79.9
86.8
21.4
28.3
6.0
10,853,112
5,991,956
4,861,157
144
173
119
117
83
159
10.45
10.06
10.94
9.37-11.57
9.24-10.95
9.95-11.87
75.6
72.3
79.6
20.3
27.2
11.7
8 Demand 8
9
Fixed rate
10 Floating rate
12,849,791
2,103,986
10,745,805
198
295
186
10.51
9.48
10.71
9.31-11.57
8.84-10.13
9.87-11.63
81.4
74.7
82.7
9.0
19.6
6.9
11 Total short term
43,213,481
284
9.97
8.98-10.64
75.4
13.8
12 Fixed rate (thousands of dollars) . .
13
1-24
14 25-49
15 50-99
16
100-499
17 500-999
18
1000 and over
25,415,658
255,737
111,594
188,104
455,028
482,145
23,923,050
528
7
33
63
208
693
7,364
25
119
108
164
133
46
21
9.49
12.34
11.54
11.74
9.69
9.46
9.43
8.91-9.80
11.63-13.03
10.52-12.50
10.79-12.75
9.44-11.52
7.75-10.50
8.91-9.69
70.6
30.9
33.2
44.8
61.3
56.6
71.8
17.7
19 Floating rate (thousands of dollars)
20
1-24
21
25-49
22
50-99
23
100-499
24
500-999
25
1000 and over
17,797,824
495,087
519,633
944,865
3,469,881
1,739,135
10,629,223
171
10
34
67
198
646
4,247
114
171
155
158
159
187
76
10.66
12.19
11.90
11.78
11.43
9.47-11.63
11.57-12.75
11.30-12.68
11.02-12.19
10.52-12.13
10.47-11.57
9.04-10.92
82.3
75.2
82.9
85.1
83.9
84.2
81.6
8.1
2.0
2.3
3.4
6.8
10.1
9.3
2 One month and under
Fixed rate
3
4
Floating rate
5 Over one month and under a year .
6
Fixed rate
Floating rate
7
11.08
10.11
.1
.1
.4
3.9
7.1
18.6
Months
26 Total long term
4,879,449
231
11.08
.13
10.38-12.01
71.3
13.8
27 Fixed rate (thousands of dollars) ..
28
1-99
29
100-499
30 500-999
31
1000 and over
1,101,443
120,464
164,633
81,750
734,594
148
18
267
762
4,564
10.50
11.99
11.56
11.39
9.93
.24
.17
.24
.33
.25
9.34-11.57
11.46-12.96
11.35-12.40
10.47-12.52
9.25-10.52
66.6
14.5
58.7
36.9
80.2
4.8
.0
5.2
27.4
2.9
32 Floating rate (thousands of dollars)
33
1-99
34
100-499
35
500-999
36
1000 and over
3,778,007
259,014
698,300
491,127
2,329,567
276
29
200
700
3,775
11.25
.13
16.4
.08
10.52-12.01
72.7
12.05
11.46-12.75
47.6
3.6
11.66
11.14
11.06
.11
11.02-12.19
10.47-11.63
10.47-12.01
66.4
69.3
78.1
14.0
.08
.20
12.6
19.3
Loan rate (percent)
Prime rate 10
Days
Effective3
Nominal9
8.73
8.91
9.00
8.79
10.00
10.12
10.05
LOANS MADE BELOW PRIME"
37
38
39
40
Overnight 7
One month and under
Over one month and under a year
Demand 8
11,989,002
5,938,327
5,582,471
4,627,334
8,931
2,784
691
1,008
9.12
9.31
9.37
9.11
41 Total short term
28,137,134
1,743
9.21
8.83
42 Fixed rate
43 Floating rate
21,770,974
6,366,160
2,337
932
9.18
9.30
8.81
64.3
9.0
81.0
21.2
75.5
69.6
28.9
12.7
10.03
70.9
16.1
69.0
77.3
18.5
8.92
10.02
10.10
9.76
9.40
10.55
9.36
10.07
9.10
9.63
10.10
10.91
10.01
8.1
Months
44 Total long term
45 Fixed rate
46 Floating rate
For notes see end of table.
1,329,863
575
584,098
745,765
516
632
43
31.4
81.9
82.0
8.9
49.1
Financial Markets A79
4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 7-11, 1990'—Continued
A. Commercial and Industrial Loans—Continued
Characteristic
Amount of
loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Weighted
average
maturity 2
Days
Loan rate (percent)
Weighted
average
effective 3
Standard
Interquartile
range 5
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
LARGE BANKS
11,620,868
8,671
2 One month and under
3
Fixed rate
4
Floating rate
5,222,770
3,458,240
1,764,530
3.176
5,207
5 Over one month and under a year . . .
6
Fixed rate
7
Floating rate
8.80-9.34
63.6
9.3
9.52
9.55
9.45
8.86-9.80
8.86-9.88
8.83-9.72
79.3
75.3
87.2
26.1
1,800
16
17
14
6,675,842
4,534,940
2,140,901
1,077
3,475
437
90
71
130
10.13
9.97
10.46
9.27-10.92
9.24-10.59
9.43-11.56
81.1
77.1
89.5
26.6
32.8
13.4
8 Demand 8
9
Fixed rate
10
Floating rate
7,612,207
1,196,682
6,415,525
441
771
403
10.28
9.39
10.45
9.09-11.16
8.49-10.00
9.20-11.49
74.4
66.5
75.9
32.0
7.3
11 Total short term
31,131,687
1.177
9.71
8.94-10.38
72.6
16.3
12 Fixed rate (thousands of dollars)
13
1-24
14
25-49
15
50-99
16
100-499
17
500-999
18
1000 and over
20,810,465
8,667
11,422
18,517
150,105
200,451
20,421,302
4,283
10
34
67
232
676
8,355
9.43
11.55
8.91-9.69
11.00-12.00
10.50-12.00
10.96-11.63
9.65-11.07
9.48-10.53
8.90-9.69
68.7
30.9
35.0
49.8
68.3
83.8
68.6
20.4
1.3
1.2
2.7
5.8
19 Floating rate (thousands of d o l l a r s ) . .
20
1-24
21
25-49
22
50-99
23
100-499
24
500-999
25
1000 and over
10,321,222
79,402
111,098
220,298
1,096,644
635,055
8,178,724
478
1 Overnight 7
20
121
112
86
60
23
20
11.21
11.12
10.44
10.10
9.42
37.2
4.3
11.2
10.8
20.6
11
161
10.28
11.82
152
146
141
158
64
11.74
11.56
11.19
10.91
10.04
9.11-11.07
11.02-12.68
11.02-12.40
10.75-12.13
10.47-11.63
10.47-11.46
9.03-10.75
80.6
84.9
89.3
90.6
92.0
91.7
77.8
8.1
.9
34
67
202
650
5,222
786
10.88
10.14-11.98
91.3
6.2
8.93-10.65
10.70-12.75
10.47-11.57
10.21-11.57
8.80-10.14
80.9
28.5
36.6
88.9
83.2
1.4
.0
7.9
10.47-12.01
10.94-12.47
10.52-12.01
10.47-11.57
10.47-12.01
93.9
85.9
89.6
89.6
95.4
13.2
9.7
24.9
33.4
14.9
77
1.1
1.5
5.1
8.1
Months
26 Total long term
2,527,128
27 Fixed rate (thousands of dollars) . .
28
1-99
29
100-499
30
500-999
31
1000 and over
509,771
8,079
19,183
22,096
460,412
1,096
31
244
755
4,897
10.00
11.87
10.93
10.73
9.90
32 Floating rate (thousands of dollars)
33
1-99
34
100-499
35
500-999
36
1000 and over
2,017,358
38,758
224,672
232,072
1,521,856
734
38
228
686
3,803
11.10
11.82
11.40
11.09
11.04
10.8
7.4
8.8
10.8
5.9
Loan rate (percent)
Days
Effective 3
Nominal 9
LOANS MADE BELOW PRIME"
11,150,963
4,542,416
4,211,408
3,354,839
9,811
6,373
4,427
3,566
9.13
9.26
9.40
9.07
8.74
8.87
9.03
8.77
10.00
10.00
10.00
10.00
62.3
77.3
77.4
60.6
41 Total short term
23,259,626
6,217
9.19
8.82
10.00
67.7
17.7
42 Fixed rate
43 Floating rate
18,327,924
4,931,702
7,005
4,384
9.20
9.17
8.82
10.00
8.80
10.00
66.1
73.9
21.0
5.7
9.30
9.03
10.00
89.2
6.4
9.27
9.33
9.10
8.95
10.00
10.00
80.4
99.8
9.4
37
38
39
40
Overnight 7
One month and under
Over one month and under a year
Demand 8
Months
44 Total long term
662,359
3,552
45 Fixed rate . . . .
46 Floating rate . .
361,634
300,726
3,601
3,496
For notes see end of table.
37
2.8
A74
Special Tables • December 1990
4.23—Continued
A. Commercial and Industrial Loans—Continued
Characteristic
Amount of
loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Weighted
average
maturity 2
Days
Loan rate (percent)
Weighted
average
effective 3
Standard
Interquartile
range 5
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
OTHER BANKS
1 Overnight 7
855,897
1,688
2 One month and under
Fixed rate
3
4
Floating rate
1,811,042
1,384,976
426,066
229
356
106
5 Over one month and under a year .
6
Fixed rate
Floating rate
7
4,177,271
1,457,015
2,720,255
60
44
75
8 Demand 8
Fixed rate
9
10
Floating rate
5,237,584
907,305
4,330,280
110
163
103
11 Total short term
9.10
12
20
159
118
182
8.86-9.24
9.94
9.57
11.14
9.27-10.48
9.13-9.59
10.48-12.19
89.9
91.3
85.1
10.97
10.33
11.32
10.25-12.13
9.35-11.84
10.47-12.19
66.7
57.0
71.9
10.1
10.83
9.61
11.09
14
10.38-11.63
9.06-10.47
10.47-11.85
91.4
85.5
92.7
5.9
3.1
6.5
7.8
6.2
13.0
9.7
10.3
12,081,794
96
10.62
9.40-11.63
82.5
7.2
12 Fixed rate (thousands of dollars) ..
13
1-24
14 25-49
15 50-99
16
100-499
17 500-999
18
1000 and over
4,605,193
247,070
100,172
169,588
304,922
281,693
3,501,748
106
7
33
62
198
707
4,355
51
119
108
167
159
59
27
9.73
12.37
11.58
11.80
9.32
9.01
9.49
9.03-10.47
11.68-13.09
10.52-12.50
10.79-12.75
9.27-11.78
7.75-10.14
9.01-9.62
79.0
30.9
33.0
44.3
57.8
37.2
90.6
5.6
.0
19 Floating rate (thousands of dollars)
20
1-24
21
25-49
22
50-99
23
100-499
24
500-999
25
1000 and over
7,476,602
415,685
408,535
724,567
2,373,237
1,104,080
2,450,499
91
9
34
66
196
643
2,617
160
172
156
11.17
12.26
11.94
11.85
11.54
11.17
10.32
10.47-12.04
11.57-12.75
11.46-12.68
11.07-12.40
10.79-12.19
10.47-11.63
9.18-11.02
84.7
73.4
83.5
80.2
79.8
94.0
4.0
7.6
11.2
26 Total long term
161
164
198
124
81.2
.0
.1
3.0
4.4
6.7
8.2
2.2
2.6
10.8
2,352,321
131
11.30
10.52-12.13
49.9
21.9
27 Fixed rate (thousands of dollars) ..
28
1-99
29
100-499
30
500-999
31
1000 and over
591,672
112,385
145,450
59,654
274,182
85
18
271
764
4,096
10.94
12.00
11.64
11.64
9.98
9.58-12.06
11.46-12.%
11.35-12.68
10.92-13.24
9.34-10.52
54.3
13.5
61.6
17.7
75.1
7.6
.0
4.8
33.5
6.6
32 Floating rate (thousands of dollars)
33
1-99
34
100-499
35
500-999
36
1000 and over
1,760,649
220,256
473,628
259,055
807,711
161
11.42
12.09
11.78
10.86-12.13
11.50-12.75
11.07-12.19
10.52-11.63
10.47-11.57
48.4
40.9
55.4
51.1
45.6
26.7
2.7
14.4
14.2
44.6
28
189
712
3,724
11.18
11.10
Loan rate (percent)
Days
Effective 3
Nominal 9
9.05
9.47
9.28
9.24
8.66
9.06
8.91
8.85
10.00
10.06
10.49
10.19
89.8
93.0
69.6
93.2
.0
9.2
15.2
6.7
9.28
8.89
10.20
85.9
8.7
9.10
9.73
8.72
9.32
10.11
10.44
84.7
89.0
5.3
16.7
11.10
74.8
10.25
11.52
84.4
69.9
LOANS MADE BELOW PRIME
37
38
39
40
Overnight 7
One month and under
Over one month and under a year
Demand 8
838,040
1,395,911
1,371,063
1,272,494
4,071
983
192
349
41 Total short term
6,877,508
393
42 Fixed rate
43 Floating rate
3,443,049
1,434,458
514
252
11
127
31
131
Months
44 Total long term
667,503
314
45 Fixed rate . . . .
46 Floating rate . .
222,464
445,039
216
407
For notes see end of table.
49
10.21
9.50
10.57
9.10
10.10
Financial Markets A79
4.23
TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 7-11, 1990—Continued
B. Loans to Farmers 12
Size class of loans (thousands)
Characteristic
$25-49
$10-24
$1-9
$100-249
$50-99
ALL BANKS
1 Amount of loans (thousands of dollars).
2 Number of loans
3 Weighted average maturity (months) 2 . .
i
4 Weighted average interest rate (percent) 3
5
Standard error
6
Interquartile range
7
8
9
10
11
12
1,205,164
56,179
13.8
134,100
36,759
8.7
5
164,734
11,447
12.9
$
141,636
4,212
14.1
i
12.06
12.02
11.49
12.11
11.64
12.17
11.83
11.50
12.27
11.91
11.67
62.9
63.5
66.5
56.9
60.5
61.3
80.6
72.9
10.0
6.5
65.6
7.3
3.7
6.8
13.4
2.9
52.7
11.0
7.3
12.8
21.7
8.4
48.8
1.9
4.6
14.7
19.1
11.8
44.7
11.64
12.07
12.41
12.35
12.33
11.95
12.25
12.07
12.35
11.93
12.49
11.30
12.30
12.60
12.42
12.74
12.01
12.36
73.6
71.6
55.4
60.9
25.4
5.6
39.5
3.8
7.5
7.4
10.0
68.5
8.6
1.3
4.2
11.97
12.43
12.00
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
18.2
144,669
I,056
19.2
12.24
12.74
12.30
.25
11.63-12.75
12.20
S
II.69
.39
11.05-12.47
12.45
.24
11.96-12.92
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
139,673
2,179
15.1
12.14
.18
11.57-12.69
11.79
.37
11.07-12.47
Percentage of amount of loans
13 With floating rates
14 Made under commitment
15
16
17
18
19
20
I
.21
11.63-12.75
12.06
4.4
19.3
LARGE FARM LENDERS 12
1 Amount of loans (thousands of dollars).
2 Number of loans
3 Weighted average maturity (months) 2 . .
$
4 Weighted average interest rate (percent) ;
5
Standard error
6
Interquartile range 5
7
8
9
10
11
12
11.43
.36
10.75-12.13
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
11.46
11.64
11.50
11.98
12.07
11.03
Percentage of amount of loans
13 With floating rates
14 Made under commitment
15
16
17
18
19
20
688,060
11,923
9.5
I
24,324
6,114
8.0
I
40,626
2,743
10.4
5
42,369
I,241
10.8
I
55,026
831
9.3
I
88,939
591
9.3
12.05
.24
11.46-12.68
12.56
12.53
11.89
12.17
11.75
12.38
11.81
11.84
11.88
12.26
11.54
11.79
11.39
12.34
12.11
12.20
II.80
.12
11.25-12.36
12.00
12.27
11.98
12.11
12.21
.22
11.57-12.75
11.71
11.42
11.91
11.48
11.54
.06
10.92-12.00
11.78
.16
11.31-12.19
12.26
11.80
12.00
87.4
84.0
87.8
82.0
92.6
84.4
90.2
82.7
95.9
85.8
33.5
3.2
26.6
1.3
9.4
26.1
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
86.8
84.7
12.0
4.2
68.8
2.5
1.5
11.0
14.6
5.4
64.1
3.5
25.4
2.6
47.3
4.3
27.9
5.5
36.5
11.0
18.4
24.8
3.0
49.9
2.4
4.4
15.6
7.1
21.9
OTHER BANKS 12
1 Amount of loans (thousands of dollars).
2 Number of loans
3 Weighted average maturity (months) 2 . .
4 Weighted average interest rate (percent)
5
Standard error
6
Interquartile range 5
1
8
9
10
11
12
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
For notes see end of table.
f
517,104
44,256
17.1
109,776
30,645
(
124,108
8,704
13.5
12.28
.06
11.63-12.75
12.50
.08
12.05-13.03
12.39
.05
11.81-12.75
12.16
12.46
12.27
12.54
11.81
12.48
12.38
12.60
12.47
12.76
12.18
99,267
2,971
15.0
I
84,647
1,348
17.4
$
55,730
465
28.3
12.10
12.54
5
12.45
12.47
12.36
11.93
12.18
.17
11.70-12.82
11.98
12.58
12.37
.06
11.73-12.%
11.92
.38
11.35-12.75
11.90
A76
Special Tables • December 1990
4.23—Continued
B. Loans to Farmers 12 —Continued
Size class of loans (thousands)
Characteristic
All sizes
Percentage of amount of loans
13 With floating rates
14 Made under commitment
15
16
17
18
19
20
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
$1-9
$10-24
$25-49
$50-99
55.3
55.1
48.5
55.6
54.8
57.5
55.3
45.2
41.2
47.4
14.7
8.9
56.6
7.1
5.0
7.8
6.3
11.3
68.4
10.0
8.5
6.9
66.1
8.5
4.5
5.5
*
*
*
*
55.0
13.8
48.0
*Fewer than 10 sample loans.
1. The survey of terms of bank lending to business collects data on gross loan
extensions made during the first full business week in the mid-month of each
quarter by a sample of 340 commercial banks of all sizes. A subsample of 250
banks also report loans to farmers. The sample data are blown up to estimate the
lending terms at all insured commercial banks during that week. The estimated
terms of bank lending are not intended for use in collecting the terms of loans
extended over the entire quarter or residing in the portfolios of those banks.
Mortgage loans, purchased loans, foreign loans, and loans of less than $1,000 are
excluded from the survey.
As of Dec. 31, 1989, assets of most of the large banks were at least $7.0 billion.
For all insured banks total assets averaged $250 million.
2. Average maturities are weighted by loan size and exclude demand loans.
3. Effective (compounded) annual interest rates are calculated from the stated
rate and other terms of the loan and weighted by loan size.
4. The chances are about two out of three that the average rate shown would
differ by less than this amount from the average rate that would be found by a
complete survey of lending at all banks.
5. The interquartile range shows the interest rate range that encompasses the
middle 50 percent of the total dollar amount of loans made.
*
2.7
*
*
*
*
*
$100-249
*
$250
and over
•
*
*
*
*
*
*
57.7
*
*
*
*
*
*
*
6. The most common base rate is that rate used to price the largest dollar
volume of loans. Base pricing rates include the prime rate (sometimes referred to
as a bank's "basic" or "reference" rate); the federal funds rate; domestic money
market rates other than the federal funds rate; foreign money market rates; and
other base rates not included in the foregoing classifications.
7. Overnight loans are loans that mature on the following business day.
8. Demand loans have no stated date of maturity.
9. Nominal (not compounded) annual interest rates are calculated from survey
data on the stated rate and other terms of the loan and weighted by loan size.
10. The prime rate reported by each bank is weighted by the volume of loans
extended and then averaged.
11. The proportion of loans made at rates below prime may vary substantially
from the proportion of such loans outstanding in banks' portfolios.
12. Among banks reporting loans to farmers (Table B), most "large banks"
(survey strata 1 to 2) had over $20 million in farm loans, and most "other banks"
(survey strata 3 to 5) had farm loans below $20 million.
The survey of terms of bank lending to fanners now includes loans secured by
farm real estate. In addition, the categories describing the purpose of farm loans
have now been expanded to include "purchase or improve farm real estate." In
previous surveys, the purpose of such loans was reported as "other."
Financial Markets A79
4.23
TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 6-10, 19901
A. Commercial and Industrial Loans
Characteristic
Amount of
loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Loan rate (percent)
Weighted
maturity
Days
2
Weighted
average
effective 3
Standard
Interquartile
range 5
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
Most
common
pricing
ALL BANKS
1 Overnight 7
*
14,105,344
6,834
9.03
.07
8.71-9.24
55.7
12.4
Fed Funds
8,880,639
5,882,226
2,998,413
1,131
1,384
833
17
18
17
9.44
9.28
9.74
.15
.17
.18
8.73-9.68
8.71-9.48
8.86-10.48
88.2
84.4
95.6
13.7
13.3
14.6
Domestic
Domestic
Domestic
11,147,077
5,560,459
5,586,617
168
202
144
135
101
169
10.14
9.71
10.56
.19
.19
.21
8.87-11.30
8.70-10.47
9.42-11.57
82.8
81.5
84.1
11.9
13.3
10.5
Prime
Other
Prime
8 Demand 8
9
Fixed rate
10 Floating rate
11,352,304
2,307,754
9,044,550
195
413
172
10.40
9.41
10.66
.15
.11
.16
9.12-11.35
8.68-10.00
9.73-11.57
80.2
82.6
79.5
8.3
22.1
4.8
Prime
Fed Funds
Prime
11 Total short term
45,485,364
338
49
9.72
.16
8.79-10.52
74.8
11.5
Fed Funds
12 Fixed rate (thousands of dollars) ..
13
1-24
14 25-49
15 50-99
16
100-499
17 500-999
18
1000 and over
27,855,783
208,602
110,198
122,524
485,093
496,049
26,433,318
706
8
35
64
193
648
7,452
27
119
110
106
81
74
24
9.25
12.21
12.40
11.57
10.52
10.00
9.17
.10
.26
.29
.16
.11
.18
.06
8.71-9.43
11.19-13.10
11.63-13.30
10.55-12.41
9.92-11.52
9.04-10.56
8.70-9.35
69.2
28.6
34.3
37.9
48.2
75.9
70.0
13.6
.9
.0
.9
3.3
6.7
14.1
Fed Funds
Other
Prime
Prime
Prime
Other
Fed Funds
19 Floating rate (thousands of dollars)
20
1-24
21
25-49
22
50-99
23
100-499
24
500-999
25
1000 and over
17,629,581
454,671
512,746
848,400
3,303,540
1,547,820
10,962,404
185
10
34
67
203
665
4,646
116
159
181
176
184
170
89
10.47
12.10
11.77
11.64
11.39
11.06
9.89
.18
.10
.05
.05
.06
.05
.14
9.31-11.47
11.46-12.75
11.07-12.31
11.02-12.19
10.52-11.91
10.47-11.63
8.86-10.66
83.7
75.2
78.4
86.9
87.2
87.2
82.5
8.3
1.8
1.2
4.2
6.4
7.5
9.9
Prime
Prime
Prime
Prime
Prime
Prime
Prime
2 One month and under
3
Fixed rate
Floating rate
4
5 Over one month and under a year .
Fixed rate
6
7
Floating rate
*
*
*
Months
26 Total long term
4,583,101
247
42
10.72
.20
9.73-11.63
70.7
6.9
Prime
27 Fixed rate (thousands of dollars) ..
28
1-99
100-499
29
30
500-999
31
1000 and over
1,282,981
115,008
165,101
47,352
955,521
160
17
185
661
5,135
42
48
44
42
41
10.31
12.15
11.62
10.42
9.86
.31
.18
.25
.36
.27
8.95-11.57
11.07-12.75
11.02-12.41
9.11-11.43
8.79-10.88
66.1
20.1
30.6
93.1
76.4
3.9
.1
26.2
6.6
.3
Other
Prime
Other
Other
Foreign
32 Floating rate (thousands of dollars)
33
1-99
34
100-499
35
500-999
36
1000 and over
3,300,120
177,952
529,497
308,667
2,284,004
313
25
218
682
3,483
42
44
39
42
43
10.88
12.08
11.34
11.20
10.64
.23
.11
.08
.14
.37
10.38-11.85
11.35-12.68
10.52-12.01
10.52-11.63
9.73-11.63
72.4
56.4
75.2
73.5
72.9
8.1
5.0
9.4
9.5
7.9
Prime
Prime
Prime
Prime
Prime
Loan rate (percent)
Prime rate
Days
Effective3
Nominal9
8.57
8.66
8.79
8.72
10.00
10.00
10.09
10.07
55.0
87.5
87.4
67.4
13.0
10.8
13.4
14.3
LOANS MADE BELOW PRIME"
Overnight 7
One month and under
Over one month and under a year .
Demand 8
*
13,446,713
7,270,241
6,236,325
4,348,107
8,761
4,592
709
1,221
16
121
8.95
9.04
9.12
9.02
41 Total short term
31,301,386
2,022
33
9.02
8.66
10.03
70.7
12.7
42 Fixed rate
43 Floating rate
24,658,959
6,642,427
2,654
1,073
23
85
8.99
9.12
8.63
8.77
10.01
10.09
68.5
78.9
14.5
6.1
37
38
39
40
*
Months
44 Total long term
1,369,561
1,159
39
9.05
8.73
10.07
70.5
7.0
45 Fixed rate . . . .
46 Floating rate ..
632,006
737,555
842
1,709
40
38
9.05
9.04
8.79
8.69
10.02
10.11
69.9
71.0
3.0
10.5
For notes see end of table.
A78
4.23
Special Tables • December 1990
TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 6-10, 1990'—Continued
A. Commercial and Industrial Loans—Continued
Characteristic
Amount of
loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Weighted
average
maturity 2
Days
Loan rate (percent)
Weighted
average
effective 3
Standard
error 4
Interquartile
range 5
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
Most
common
pricing
rate 6
LARGE BANKS
1 Overnight 7
*
12,774,027
8,107
9.03
.08
8.71-9.21
51.4
13.6
Fed Funds
2 One month and under
Fixed rate
3
4
Floating rate
6,547,458
4,208,382
2,339,077
4,368
5,562
3,151
17
17
16
9.40
9.34
9.51
.17
.18
.27
8.79-9.57
8.80-9.60
8.73-9.50
87.5
82.8
95.8
11.6
15.4
4.7
Domestic
Domestic
Domestic
5 Over one month and under a year .
6
Fixed rate
7
Floating rate
6,873,909
3,963,118
2,910,791
1,105
2,936
598
107
82
142
9.72
9.52
10.01
.15
.17
.30
8.72-10.52
8.69-10.06
8.86-11.07
91.3
88.1
95.7
10.8
12.7
8.3
Foreign
Foreign
Prime
8 Demand 8
9
Fixed rate
10 Floating rate
6,579,448
1,332,742
5,246,707
361
1,005
310
*
*
*
10.11
9.23
10.34
.21
.09
.22
8.89-11.02
8.56-9.72
9.11-11.08
71.4
78.2
69.7
9.3
25.6
5.1
Prime
Domestic
Prime
11 Total short term
32,774,842
1,190
33
9.47
.10
8.73-9.91
71.0
11.8
Fed Funds
12 Fixed rate (thousands of dollars) . .
13
1-24
14 25-49
15 50-99
16
100-499
17 500-999
18
1000 and over
22,278,268
8,360
8,267
17,922
156,534
234,613
21,852,572
4,449
10
33
66
238
684
8,252
20
127
89
93
50
48
19
9.19
11.34
11.18
11.02
10.21
9.79
9.17
.10
.40
.45
.14
.11
.09
.10
8.71-9.38
10.52-12.00
10.68-12.00
10.48-11.50
9.27-11.00
8.97-10.54
8.71-9.35
65.4
28.1
38.3
58.2
66.2
75.1
65.4
14.5
.8
.5
1.0
4.9
9.7
14.7
Fed Funds
Prime
Prime
Prime
Prime
Other
Fed Funds
19 Floating rate (thousands of dollars)
20
1-24
21
25-49
22
50-99
23
100-499
24
500-999
25
1000 and over
10,496,574
85,556
123,023
238,072
1,073,783
644,368
8,331,773
466
11
34
67
202
661
5,904
86
169
165
157
177
172
74
10.06
11.72
11.63
11.51
11.16
10.89
9.77
.23
.14
.07
.06
.04
.04
.22
8.91-11.02
11.02-12.40
11.02-12.19
10.75-12.13
10.47-11.63
10.47-11.57
8.81-10.52
82.7
84.8
89.8
90.9
91.3
91.1
80.6
5.9
.7
1.3
1.7
3.6
7.3
6.3
Prime
Prime
Prime
Prime
Prime
Prime
Prime
Months
26 Total long term
2,892,992
773
45
10.44
.22
9.32-11.42
86.1
6.7
Prime
27 Fixed rate (thousands of dollars) . .
28
1-99
29
100-499
30
500-999
31
1000 and over
739,598
12,383
20,326
32,874
674,015
735
17
218
703
5,213
44
40
67
39
44
9.63
11.60
10.66
10.39
9.53
.22
.24
.33
.43
.26
8.77-10.61
10.75-12.40
9.56-12.13
9.00-11.50
8.75-10.47
78.5
17.4
76.8
95.2
78.9
.4
.0
8.2
3.6
.0
Foreign
None
None
Other
Foreign
32 Floating rate (thousands of dollars)
33
1-99
34
100-499
35
500-999
36
1000 and over
2,153,395
35,474
243,027
164,740
1,710,154
786
36
227
668
3,901
46
37
38
46
47
10.71
11.80
11.24
11.06
10.58
.29
.14
.11
.20
.36
10.25-11.57
11.02-12.25
10.47-11.99
10.47-11.57
9.99-11.46
88.7
86.3
87.1
89.7
88.9
8.9
5.5
9.0
11.9
8.7
Prime
Prime
Prime
Prime
Prime
Loan rate (percent)
n*
t 10
Prime rate
Days
Effective 3
Nominal 9
8.57
8.67
8.71
8.63
10.00
10.00
10.00
10.01
50.5
86.2
90.4
53.4
14.3
11.7
10.2
13.2
LOANS MADE BELOW PRIME
37
38
39
40
Overnight 7
One month and under
Over one month and under a year
Demand 8
12,169,369
5,560,725
4,663,150
2,991,314
9,272
7,360
3,977
2,946
15
97
*
8.95
9.05
9.05
8.90
41 Total short term
25,384,557
5,965
25
8.98
8.63
10.00
66.0
12.9
42 Fixed rate
43 Floating rate
20,054,172
5,330,385
6,605
4,370
18
62
8.98
9.01
8.62
8.67
10.00
10.01
63.3
76.3
15.3
3.6
Months
44 Total long term
1,020,291
2,629
39
9.07
8.77
10.00
80.6
8.0
45 Fixed rate
46 Floating rate . .
483,147
537,144
2,084
3,437
39
39
8.86
9.26
8.64
8.89
10.00
10.01
78.6
82.3
3.2
12.2
For notes see end of table.
Financial Markets
A79
4.23—Continued
A. Commercial and Industrial Loans—Continued
Characteristic
Amount of
loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Loan rate (percent)
Weighted
maturity 2
Days
Weighted
average
effective 3
Standard
Interquartile
range 5
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
Most
common
pricing
rate 6
OTHER BANKS
*
1 Overnight 7
1,331,318
2,726
9.03
.11
8.73-9.31
97.6
.3
2 One month and under
3
Fixed rate
Floating rate
4
2,333,181
1,673,844
659,336
367
479
231
19
18
22
9.54
9.14
10.54
.23
.29
.18
8.69-10.48
8.58-9.34
10.47-10.52
90.3
88.5
94.9
19.8
8.0
49.7
Prime
Domestic
Prime
5 Over one month and under a year ..
6
Fixed rate
Floating rate
7
4,273,168
1,597,341
2,675,826
71
61
79
179
149
198
10.80
10.19
11.16
.17
.27
.17
9.64-11.63
8.71-11.52
10.47-11.85
69.2
65.3
71.5
13.6
14.8
12.9
Prime
Other
Prime
8 Demand 8
9
Fixed rate
10 Floating rate
4,772,855
975,012
3,797,843
119
229
106
*
10.81
9.65
11.10
.17
.16
.15
10.24-11.63
8.98-10.24
10.47-11.85
92.2
88.6
93.2
7.1
17.3
4.4
Prime
Other
Prime
11 Total short term
12,710,522
119
102
10.38
.14
9.03-11.57
84.7
10.9
Prime
12 Fixed rate (thousands of dollars) . . .
13
1-24
14 25-49
15 50-99
16
100-499
17 500-999
18
1000 and over
5,577,516
200,241
101,931
104,602
328,560
261,436
4,580,746
162
7
35
63
177
619
5,095
59
119
111
107
94
96
49
9.50
12.25
12.50
11.66
10.67
10.19
9.14
.15
.19
.13
.15
.17
.37
.09
8.70-9.91
11.41-13.10
11.74-13.30
10.88-12.41
10.38-11.52
9.16-11.02
8.67-9.38
84.0
28.6
34.0
34.4
39.7
76.7
92.3
9.8
.9
.0
.8
2.6
4.0
11.4
Other
Other
Prime
Prime
Prime
Other
Other
19 Floating rate (thousands of dollars).
20
1-24
21
25-49
22
50-99
23
100-499
24
500-999
25
1000 and over
7,133,006
369,115
389,722
610,328
2,229,757
903,453
2,630,631
98
10
34
67
203
668
2,774
163
158
183
179
186
169
139
11.07
12.19
11.81
11.69
11.49
11.17
10.28
.13
.05
.03
.04
.07
.06
.14
10.47-11.66
11.57-12.75
11.30-12.40
11.02-12.19
10.79-12.13
10.47-11.73
9.52-11.02
85.2
72.9
74.8
85.4
85.3
84.4
88.6
11.8
2.1
1.2
5.2
7.8
7.6
21.1
Prime
Prime
Prime
Prime
Prime
Prime
Prime
*
*
Fed Funds
Months
114
37
11.21
.29
10.47-12.19
44.3
7.3
Prime
27 Fixed rate (thousands of dollars) ..
28
1-99
29
100-499
30 500-999
31
1000 and over
543,383
102,625
144,775
14,478
281,506
78
17
181
583
4,958
39
49
41
49
34
11.24
12.22
11.75
10.50
10.67
.31
.21
.25
.78
.55
10.29-11.91
11.07-12.75
11.07-12.47
10.52-11.18
9.71-11.63
49.1
20.4
24.1
88.2
70.5
8.6
.2
28.8
13.5
1.1
Other
Prime
Other
Other
Other
32 Floating rate (thousands of dollars)
33
1-99
34
100-499
35
500-999
36
1000 and over
1,146,726
142,478
286,470
143,927
573,850
147
24
211
699
2,640
36
46
41
38
31
11.19
12.15
11.43
11.36
10.80
.37
.10
.12
.19
.67
10.52-12.28
11.57-12.68
11.02-12.13
10.52-12.13
9.73-12.68
42.0
48.9
65.0
55.0
25.5
6.6
4.8
9.7
6.9
5.5
Prime
Prime
Prime
Prime
Prime
26 Total long term
1,690,109
Loan rate (percent)
Days
Prime rate
Effective 3
Nominal 9
8.96
9.00
9.35
9.31
8.58
8.63
9.00
8.92
10.00
10.01
10.35
10.18
97.5
91.9
78.5
98.0
.0
8.0
22.9
16.5
LOANS MADE BELOW PRIME"
Overnight 7
One month and under
Over one month and under a year . . . .
Demand 8
1,277,344
1,709,516
1,573,176
1,356,793
5,747
2,065
206
533
18
194
41 Total short term
5,916,829
527
74
9.16
8.78
10.14
91.0
12.2
42 Fixed rate
43 Floating rate
4,604,787
1,312,042
736
264
52
183
9.04
9.56
8.68
9.17
10.05
10.45
91.4
89.3
11.0
16.3
37
38
39
40
*
Months
44 Total long term
349,270
440
37
8.98
8.62
10.27
41.1
4.3
45 Fixed rate
46 Floating rate . .
148,859
200,411
287
728
40
34
9.65
8.48
9.25
8.15
10.09
10.41
41.8
40.5
2.0
6.0
For notes see end of table.
A80
4.23
Special Tables • December 1990
TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 6-10, 1990—Continued
B. L o a n s to Farmers 1 2
Size class of loans (thousands)
Characteristic
$10-24
$1-9
All sizes
$250
and over
$100-249
$50-99
$25-49
ALL BANKS
1 Amount of loans (thousands of dollars)
2 Number of loans
3 Weighted average maturity (months) 2
$
4 Weighted average interest rate (percent) 3
5
Standard error . . .
6
Interquartile range
$
144,270
9.868
7.8
$
133,238
3,949
11.0
$
123,367
1,901
8.5
167,011
1,165
13.6
$
$
919,807
605
2.8
12.41
.15
1.83-12.86
12.20
.34
11.57-12.75
11.89
.29
11.19-12.64
11.80
.30
11.30-12.36
10.05
.48
8.60-11.35
12.82
13.09
12.48
12.69
12.84
12.38
12.41
12.72
12.43
12.42
12.24
12.09
12.02
12.44
12.30
12.45
11.38
12.11
12.15
12.55
11.83
11.69
12.29
11.65
11.24
11.40
9.70
11.30
12.02
9.37
61.6
84.2
54.3
59.2
64.7
63.5
75.5
70.8
68.4
70.8
77.5
74.9
56.2
%.0
24.6
4.3
39.8
1.7
2.0
27.7
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
12.56
.23
12.10-12.96
11.49
12.37
11.17
12.43
11.61
9.79
Percentage of amount of loans
13 With floating rates
14 Made under commitment
15
16
17
18
19
20
118,640
34,246
6.8
$
10.95
.31
9.44-12.19
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
7
8
9
10
11
12
1,606,333
51,734
6.6
7.2
6.4
72.6
7.1
1.5
5.2
10.3
5.6
67.5
5.9
3.7
6.9
20.5
8.2
54.7
3.1
5.2
8.3
27.6
8.5
46.1
27.8
13.4
37.4
28.6
1.0
28.6
*
*
*
*
*
*
*
*
*
40.4
16.6
14.1
LARGE FARM LENDERS 1 2
1 Amount of loans (thousands of dollars)
2 Number of loans
3 Weighted average maturity (months)
$
4 Weighted average interest rate (percent) 3
5
Standard error
6
Interquartile range
18,727
5,055
6.2
$
29,076
1,996
7.7
$
36,866
1,071
6.8
$
47,0%
704
7.1
11.90
.07
1.35-12.47
11.72
.23
11.08-12.19
11.59
.10
11.02-12.19
12.21
12.06
12.25
13.07
12.30
12.12
11.82
12.07
11.93
12.04
11.35
11.88
11.75
11.70
11.70
87.9
83.2
28.7
1.7
31.2
.3
1.3
36.9
8.6
3.8
70.5
2.1
1.2
13.9
$
92,9%
618
6.5
*
845,933
436
2.7
9.94
.34
8.60-11.09
11.43
11.22
11.40
9.47
*
11.42
*
*
*
$
11.48
.09
11.00-11.91
11.63
11.64
11.53
60.3
93.5
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
12.24
.19
11.63-12.75
11.29
11.49
10.21
12.21
11.56
9.49
Percentage of amount of loans
13 With floating rates
14 Made under commitment
15
16
17
18
19
20
$
10.30
.25
8.60-11.63
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
7
8
9
10
11
12
1,070,693
9,880
3.7
*
*
*
*
11.72
11.59
11.62
9.25
89.9
83.7
92.4
89.5
88.2
81.8
90.4
86.5
52.4
95.7
13.2
2.5
59.5
3.1
1.5
20.1
24.5
3.0
56.0
31.9
3.0
42.9
31.2
45.1
29.4
1.1
26.0
*
*
*
*
*
*
*
*
17.4
20.8
13.0
42.1
OTHER BANKS 1 2
1 Amount of loans (thousands of dollars)
2 Number of loans
3 Weighted average maturity (months) 2
4 Weighted average interest rate (percent) 3
5
Standard error
6
Interquartile range
1
8
9
10
11
12
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
For notes see end of table.
$
535,640
41,854
10.2
$
99,913
29,191
6.9
$
115,194
7,872
7.8
$
96,372
2,878
12.1
12.24
.17
11.63-12.75
12.62
.12
12.18-13.03
12.54
.12
12.04-13.03
12.38
.24
11.63-12.97
12.23
12.68
12.21
12.46
11.65
12.16
12.97
13.20
12.52
12.67
12.92
12.57
12.62
12.78
12.54
12.46
12.33
12.16
12.52
12.54
$
76,271
1,197
9.1
12.08
.26
11.40-12.87
$
74,016
547
20.9
*
12.20
.28
11.75-12.48
*
*
*
*
*
*
*
12.57
*
*
*
12.00
*
*
*
*
*
*
*
Financial Markets
A81
4.23—Continued
B . L o a n s to Farmers 1 2 —Continued
Size class of loans (thousands)
Characteristic
All sizes
Percentage of amount of loans
13 With floating rates
14 Made under commitment
15
16
17
18
19
20
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
$1-9
$10-24
$25-49
$50-99
$100-249
64.2
65.5
48.0
54.7
58.3
58.5
69.1
63.6
56.2
63.9
61.3
60.4
16.3
9.5
57.1
4.6
3.3
9.2
7.0
6.8
73.0
8.1
1.5
3.6
9.6
6.4
69.6
6.7
4.3
18.9
10.2
54.2
24.9
*
*
*
*
*
48.1
*
#
$250
and over
*
*
*
*
*
*
*
*
*
*
*
*
*
*Fewer than 10 sample loans.
1. The survey of terms of bank lending to business collects data on gross loan
extensions made during the first full business week in the mid-month of each
quarter by a sample of 340 commercial banks of all sizes. A sample of 250 banks
reports loans to farmers. The sample data are blown up to estimate the lending
terms at all insured commercial banks during that week. The estimated terms of
bank lending are not intended for use in collecting the terms of loans extended
over the entire quarter or residing in the portfolios of those banks. Mortgage
loans, purchased loans, foreign loans, and loans of less than $1,000 are excluded
from the survey.
As of Dec. 31, 1989, assets of most of the large banks were at least $7.0 billion.
For all insured banks total assets averaged $250 million.
2. Average maturities are weighted by loan size and exclude demand loans.
3. Effective (compounded) annual interest rates are calculated from the stated
rate and other terms of the loan and weighted by loan size.
4. The chances are about two out of three that the average rate shown would
differ by less than this amount from the average rate that would be found by a
complete survey of lending at all banks.
5. The interquartile range shows the interest rate range that encompasses the
middle 50 percent of the total dollar amount of loans made.
6. The most common base rate is that rate used to price the largest dollar
volume of loans. Base pricing rates include the prime rate (sometimes referred to
as a bank's "basic" or "reference" rate); the federal funds rate; domestic money
market rates other than the federal funds rate; foreign money market rates; and
other base rates not included in the foregoing classifications.
7. Overnight loans are loans that mature on the following business day.
8. Demand loans have no stated date of maturity.
9. Nominal (not compounded) annual interest rates are calculated from survey
data on the stated rate and other terms of the loan and weighted by loan size.
10. The prime rate reported by each bank is weighted by the volume of loans
extended and then averaged.
11. The proportion of loans made at rates below prime may vary substantially
from the proportion of such loans outstanding in banks' portfolios.
12. Among banks reporting loans to farmers (Table B), most "large banks"
(survey strata 1 to 2) had over $20 million in farm loans, and most "other banks"
(survey strata 3 to 5) had farm loans below $20 million.
The survey of terms of bank lending to farmers now includes loans secured by
farm real estate. In addition, the categories describing the purpose of farm loans
have now been expanded to include "purchase or improve farm real estate." In
previous surveys, the purpose of such loans was reported as "other."
A82
4.30
Special Tables • December 1990
ASSETS A N D LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 19901
Millions of dollars
All states 2
Item
1 Total assets4
New York
California
Illinois
Total
including
IBF's
IBF's
only
Total
including
IBF's
IBF's
only 3
Total
including
IBF's
IBF's
only
Total
including
IBF's
IBF's
only 3
574,238
249,563
419,154
198,685
85,865
27,038
40,913
13,698
2 Claims on nonrelated parties
3 Cash and balances due from depository institutions
4
Cash items in process of collection and unposted
debits
5 Currency and coin (U.S. and foreign)
6 Balances with depository institutions in United States . .
7
U.S. branches and agencies of other foreign banks
(including their IBFs)
8
Other depository institutions in United States
(including their IBFs)
y
Balances with banks in foreign countries and with
foreign central banks
10
Foreign branches of U.S. banks
li
Other banks in foreign countries and foreign central
banks
12 Balances with Federal Reserve Banks
508,256
132,638
195,106
109,927
368,595
111,202
155,971
91,250
77,782
8,748
20,273
8,019
40,537
10,723
13,150
9,383
1,222
23
66,524
0
n.a.
46,603
1,169
17
55,405
0
n.a.
37,822
27
1
4,758
0
n.a.
4,117
4
1
5,688
0
n.a.
4,422
58,381
43,748
48,811
35,312
4,182
3,995
4,930
4,226
8,142
2,856
6,594
2,510
575
122
758
197
64,042
1,850
63,323
1,778
53,957
1,707
53,428
1,636
3,905
74
3,902
74
4,980
60
4,961
60
62,192
828
61,545
n.a.
52,250
654
51,792
n.a.
3,831
57
3,828
n.a.
4,921
49
4,901
n.a.
13 Total securities and loans
310,651
74,712
205,963
55,878
59,148
11,191
27,227
3,372
43,660
8,917
13,523
n.a.
38,174
8,640
11,630
n.a.
3,634
55
1,273
n.a.
1,208
161
537
n.a.
14 Total securities, book value
li
U.S. Treasury
16 Obligations of U.S. government agencies and
corporations
17 Other bonds, notes, debentures and corporate stock
(including state and local securities)
6,001
n.a.
5,764
n.a.
142
n.a.
22
n.a.
28,742
13,523
23,770
11,630
3,437
1,273
1,025
537
15,226
9,919
2,053
3,253
3,693
2,414
33
1,245
13,843
9,077
1,747
3,018
3,481
2,349
33
1,099
752
533
95
124
143
57
0
86
215
162
13
41
0
0
0
0
267,176
186
266,991
61,227
38
61,189
167,915
125
167,790
44,282
35
44,248
55,560
46
55,514
9,922
3
9,918
26,028
10
26,018
2,835
0
2,835
38,720
60,215
37,725
32,224
5,501
368
31,346
10,891
10,276
615
20,334
41,433
25,288
20,793
4,495
191
19,579
5,192
4,738
453
11,753
12,219
8,750
8,307
443
136
7,543
4,182
4,073
109
4,155
4,396
3,141
2,623
518
35
2,483
1,243
1,208
35
157
22,333
456
21,877
7,545
0
20,455
455
19,999
891
92
16,052
359
15,693
5,470
0
14,388
359
14,029
726
64
3,405
67
3,338
977
0
3,361
67
3,294
125
0
1,255
24
1,231
609
0
1,241
24
1,217
27
138,314
119,142
19,173
1,985
852
1,133
14,536
200
14,335
52
0
52
82,693
68,020
14,673
1,388
729
660
12,166
85
12,081
52
0
52
29,006
26,230
2,776
389
64
324
1,693
105
1,588
0
0
0
16,382
15,989
393
157
12
145
220
10
210
0
0
0
14,840
13,691
12,161
11,240
501
425
83
69
2,870
2,687
5
338
2,240
2,196
5
322
630
85
0
0
0
246
0
0
49,742
28,567
19,487
9,080
6,775
n.a.
n.a.
n.a.
37,587
20,883
12,726
8,158
5,362
n.a.
n.a.
n.a.
9,133
6,703
5,974
729
919
n.a.
n.a.
n.a.
2,373
762
760
2
395
n.a.
n.a.
n.a.
21,175
65,982
6,775
54,457
16,704
50,559
5,362
42,714
2,431
8,083
919
6,765
1,611
376
395
548
65,982
n.a.
50,559
n.a.
8,083
n.a.
n.a.
54,457
n.a.
42,714
n.a.
6,765
n.a.
52 Total liabilities4
574,238
249,563
419,154
198,685
85,865
27,038
40,913
13,698
53 Liabilities to nonrelated parties
509,011
216,778
387,794
177,610
77,675
23,097
27,439
8,690
18 Federal funds sold and securities purchased under
agreements to resell
19 U.S. branches and agencies of other foreign banks
20
Commercial banks in United States
21
Other
22 Total loans, gross
23
Less: Unearned income on loans
24
Equals: Loans, net
Total loans, gross, by category
25 Real estate loans
26 Loans to depository institutions
27
Commercial banks in United States (including I B F s ) . . . .
28
U.S. branches and agencies of other foreign banks . . .
29
Other commercial banks in United States
Other depository institutions in United States (including
30
IBFs)
31
Banks in foreign countries
32
Foreign branches of U.S. banks
33
Other banks in foreign countries
34 Other financial institutions
35 Commercial and industrial loans
U.S. addressees (domicile)
36
Non-U.S. addressees (domicile)
37
38 Acceptances of other banks
U.S. banks
39
Foreign banks
40
41 Loans to foreign governments and official institutions
(including foreign central banks)
42 Loans for purchasing or carrying securities (secured and
unsecured)
43 All other loans
44 All other assets
45
Customers' liability on acceptances outstanding
U.S. addressees (domicile)
46
47
Non-U.S. addressees (domicile)
48
Other assets including other claims on nonrelated
parties
49 Net due from related depository institutions 5
Net due from head office and other related depository
50
institutions
51
Net due from establishing entity, head offices, and other
related depository institutions 5
376
n.a.
548
U.S. Branches and Agencies
A83
4.30—Continued
Millions o f dollars
All states 2
Item
54 Total deposits and credit balances
55
Individuals, partnerships, and corporations
56
U.S. addressees (domicile)
57
Non-U.S. addressees (domicile)
58
Commercial banks in United States (including I B F s ) . . .
59
U.S. branches and agencies of other foreign banks ..
Other commercial banks in United States
60
61
Banks in foreign countries
Foreign branches of U.S. banks
62
Other banks in foreign countries
63
64
Foreign governments and official institutions
(including foreign central banks)
All other deposits and credit balances
65
Certified and official checks
66
67 Transaction accounts and credit balances
(excluding IBFs)
Individuals, partnerships, and corporations
68
U.S. addressees (domicile)
69
70
Non-U.S. addressees (domicile)
71
Commercial banks in United States (including I B F s ) . . .
U.S. branches and agencies of other foreign banks ..
72
Other commercial banks in United States
73
74
Banks in foreign countries
75
Foreign branches of U.S. banks
Other banks in foreign countries
76
77
Foreign governments and official institutions
(including foreign central banks)
AH other deposits and credit balances
78
79 Certified and official checks
80 Demand deposits (included in transaction accounts
and credit balances)
81
Individuals, partnerships, and corporations
82
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
83
84 Commercial banks in United States (including l B F ) s . . .
85
U.S. branches and agencies of other foreign banks . .
Other commercial banks in United States
86
87
Banks in foreign countries
Foreign branches of U.S. banks
88
Other banks in foreign countries
89
90
Foreign governments and official institutions
(including foreign central banks)
91
All other deposits and credit balances
Certified and official checks
92
93 Non-transaction accounts (including MMDAs,
excluding IBFs)
Individuals, partnerships, and corporations
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Commercial banks in United States (including I B F s ) . . .
U.S. branches and agencies of other foreign banks ..
Other commercial banks in United States
Banks in foreign countries
Foreign branches of U.S. banks
Other banks in foreign countries
Foreign governments and official institutions
(including foreign central banks)
104 All other deposits and credit balances
94
95
%
97
98
99
100
101
102
103
105 IBF deposit liabilities
106 Individuals, partnerships, and corporations
107
U.S. addressees (domicile)
108
Non-U.S. addressees (domicile)
109 Commercial banks in United States (including I B F s ) . . .
110
U.S. branches and agencies of other foreign banks ..
111
Other commercial banks in United States
112 Banks in foreign countries
Foreign branches of U.S. banks
113
Other banks in foreign countries
114
115 Foreign governments and official institutions
(including foreign central banks)
116 All other deposits and credit balances
For notes see end of table.
New York
California
Illinois
Total
excluding
IBF's
IBF's
only3
Total
excluding
IBF's
IBF's
only 3
Total
excluding
IBF's
IBF's
only 3
Total
excluding
IBF's
IBF's
only 3
76,900
60,136
46,065
14,071
11,460
5,319
6,141
2,046
183
1,863
167,300
15,663
302
15,361
50,935
45,607
5,327
89,253
6,579
82,673
64,086
49,144
40,615
8,529
9,922
4,949
4,973
1,924
183
1,741
147,300
9,647
286
9,361
44,981
40,575
4,406
81,712
5,979
75,733
3,790
2,8%
1,042
1,853
813
6
807
11
0
11
10,829
445
15
430
4, (08
4,164
643
5,264
349
4,915
3,034
2,374
1,521
853
644
357
288
2
0
2
2,586
43
1
42
748
598
150
1,775
234
1,541
946
1,773
539
11,402
48
n. a.
878
1,739
479
10,912
48
n.a.
18
22
31
313
0
2
1
10
21
0
n.a.
7,562
4,730
3,324
1,406
266
82
184
1,327
23
1,304
n.a.
6,490
3,837
2,817
1,021
257
81
176
1,252
23
1,229
n.a.
268
221
187
34
1
0
1
11
0
11
n.a.
n. a.
222
.08
204
3
0
0
0
2
0
2
313
387
539
288
376
479
2
3
31
1
1
10
6,581
4,186
3,048
1,138
117
14
103
1,126
7
1,118
5,753
3,525
2,655
870
>08
13
95
1,057
7
1,050
191
148
125
22
0
0
0
10
0
10
201
187
184
3
0
0
0
2
0
2
n.a.
n.a.
n a.
n. a.
258
356
539
233
350
479
2
1
31
1
1
10
69,338
55,406
42,741
12,665
11,194
5,237
5,957
719
160
559
57,5%
45,307
37,798
7,509
9,665
4,868
4,797
671
160
512
3,522
2,674
855
1,819
812
6
807
0
0
0
2,812
2,166
1,317
849
644
357
288
0
0
0
n.a.
n.a.
633
1,385
n. a.
n.a.
590
1,362
167,300
15,663
302
15,361
50,935
45,607
5,327
89,253
6,579
82,673
11,402
48
n.a.
n.a.
1
1
16
19
147,300
9,647
286
9,361
44,981
40,575
4,406
81,712
5,979
75,733
10,912
48
n.a.
n.a.
10,829
445
15
430
4,808
4,164
643
5,264
349
4,915
313
0
n.a.
2,586
43
1
42
748
598
150
1,775
234
1,541
21
0
A84
4.30
Special Tables • December 1990
ASSETS A N D LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 1990'—Continued
Millions of dollars
All states 2
Item
117
118
119
120
121
12.2
123
124
125
126
127
128
129
130
131
132
133
134
New York
Illinois
California
Total
including
IBF's
IBF's
only
Total
including
IBF's
IBF's
only 3
Total
including
IBF's
IBF's
only 3
Total
including
IBF's
IBF's
only
77,617
15,816
30,990
30,811
133,500
5,932
1,806
231
3,895
37,770
55,542
9,972
19,971
25,599
79,762
4,360
864
166
3,330
21,252
14,390
3,976
6,746
3,668
38,926
1,095
634
50
412
10,446
6,757
1,822
3,685
1,249
12,927
441
309
15
118
5,400
76,357
31,851
13,658
2,290
41,537
17,056
4,9%
887
26,063
10,616
5,943
950
7,421
3,575
2,160
212
44,506
22,571
1,946
20,625
34,572
11,368
22,031
1,897
20,135
2,080
24,481
14,735
1,020
13,715
23,490
4,109
14,271
971
13,299
1,985
15,447
4,472
654
3,818
8,392
4,993
4,408
654
3,755
95
3,846
3,247
212
3,035
2,258
1,949
3,239
212
3,027
0
All other liabilities
Branch or agency liability on acceptances executed
and outstanding
Other liabilities to nonrelated parties
53,694
5,777
41,104
4,698
9,740
727
2,134
34,543
19,151
n a.
n. a.
4 , 698
7,341
2,399
n a.
5,777
25,943
15,161
727
821
1,314
Net due to related depository institutions 5
Net due to head office and other related depository
institutions
Net due to establishing entity, head office, and other
related depository institutions
65,227
32,785
31,360
21,075
8,190
3,941
13,474
65,227
n a.
31,360
n.a.
8,190
n a.
13,474
n.a.
n.a.
32,785
n.a.
21,075
n.a.
3,941
n.a.
5,008
Federal funds purchased and securities sold under
agreements to repurchase
U.S. branches and agencies of other foreign banks . . . .
Other commercial banks in United States
Other
Other borrowed money
Owed to nonrelated commercial banks in United States
(including IBFs)
Owed to U.S. offices of nonrelated U.S. banks
Owed to U.S. branches and agencies of
nonrelated foreign banks
Owed to nonrelated banks in foreign countries
Owed to foreign branches of nonrelated U.S. banks . . .
Owed to foreign offices of nonrelated foreign b a n k s . . . .
Owed to others
263
n.a.
263
5,008
MEMO
Non-interest bearing balances with commercial banks
in United States
136 Holding of commercial paper included in total loans
137 Holding of own acceptances included in commercial
and industrial loans
138 Commercial and industrial loans with remaining maturity
of one year or less
139
Predetermined interest rates
140
Floating interest rates
141 Commercial and industrial loans with remaining maturity
of more than one
142
Predetermined interest rates
Floating interest rates
143
135
1,734
1,215
14
1,482
951
14
0
103
223
77
37
2,619
1,951
402
103
74,057
42,437
31,621
42,967
22,743
20,223
16,316
10,822
5,493
8,929
5,240
3,689
0
64,257
21,359
42,897
n.a.
39,726
13,193
26,533
n.a.
12,690
4,064
8,626
n. a.
7,453
3,170
4,283
n.a.
U.S. Branches and Agencies
A85
4.30—Continued
Millions of dollars
All states 2
Item
144 Components of total nontransaction accounts,
included in total deposits and credit balances of
nontransactional accounts, including IBFs
145 Time CDs in denominations of $100,000 or more
146 Other time deposits in denominations of $100,000
or more
147 Time CDs in denominations of $100,000 or more
with remaining maturity of more than 12 months ..
New York
IBFs
only
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
84,228
48,570
t
73,012
40,851
1
3,897
2,510
t
2,802
1,360
15,262
n.a.
13,166
20,397
\
18,995
IBFs
only
41,943
80,344
555
1. Data are aggregates of categories reported on the quarterly form FFIEC 002,
"Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign
Banks." Details may not add to totals because of rounding. This form was first
used for reporting data as of June 30, 1980, and was revised as of December 31,
1985. From November 1972 through May 1980, U.S. branches and agencies of
foreign banks had filed a monthly FR 886a report. Aggregate data from that report
were available through the Federal Reserve statistical release G. 11, last issued on
July 10, 1980. Data in this table and in the G. 11 tables are not strictly comparable
because of differences in reporting panels and in definitions of balance sheet
items.
2. Includes the District of Columbia.
3. Effective December 1981, the Federal Reserve Board amended Regulations
D and Q to permit banking offices located in the United States to operate
International Banking Facilities (IBFs). As of December 31, 1985 data for IBFs
are reported in a separate column. These data are either included in or excluded
from the total columns as indicated in the headings. The notation " n . a . " indicates
719
n.a.
\
IBFs
only
13,769
36,293
n.a.
47,082
254
IBFs
only
t
1,224
n.a.
*
218
California
Total
including
IBFs
0
n.a.
669
\
New York
Total
including
IBFs
Illinois
Total
excluding
IBFs
All states 2
148 Market value of securities held
149 Immediately available funds with a maturity greater than
one day included in other borrowed money
150 Number of reports filed6
California
Illinois
Total
including
IBFs
IBFs
only
11,919
3,444
1,232
1,600
536
n.a.
25,242
131
n.a.
0
6,778
54
n.a.
0
0
Total
including
IBFs
IBFs
only
that no IBF data re reported for that item, either because the item is not an eligible
IBF asset or liability or because that level of detail is not reported for IBFs. From
December 1981 through September 1985, IBF data were included in all applicable
items reported.
4. Total assets and total liabilities include net balances, if any, due from or due
to related banking institutions in the United States and in foreign countries (see
footnote 5). On the former monthly branch and agencyu report, available through
the G . l l statistical release, gross balances were included in total assets and total
liabilities. Therefopre, total asset and total liability figures in this table are not
comparable to those in the G . l l tables.
5. "Related banking institutions" includes the foreign head office and other
U.S. and foreign branches and agencies of the bank, the bank's parent holding
company, and majority-owned banking subsidiaries of the bank and of its parent
holding company (including subsidiaries owned both directly and indirectly).
6. In some cases two or more offices of a foreign bank within the same
metropolitan area file a consolidated report.
A86
Federal Reserve Board of Governors
Chairman
ALAN GREENSPAN,
MARTHA R . SEGER
WAYNE D . ANGELL
OFFICE
OF BOARD
DIVISION
MEMBERS
JOSEPH R. COYNE, Assistant
DONALD J. WINN, Assistant
to the
to the
Board
Board
BOB STAHLY MOORE, Special Assistant to the Board
DIANE E. WERNEKE, Special Assistant to the Board
LEGAL
OF INTERNATIONAL
EDWIN M . TRUMAN, Staff
Director
LARRY J. PROMISEL, Senior Associate
Director
CHARLES J. SIEGMAN, Senior Associate
Director
DAVID H. HOWARD, Deputy Associate
Director
Adviser
ROBERT F. GEMMILL, Staff
DONALD B. ADAMS, Assistant
Director
DIVISION
DALE W. HENDERSON, Assistant
PETER HOOPER III, Assistant
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 THE
KAREN H. JOHNSON, Assistant
Secretary
JENNIFER J. JOHNSON, Associate
Secretary
BARBARA R. LOWREY, Associate
Secretary
DIVISION
OF
CONSUMER
AND COMMUNITY
AFFAIRS
GRIFFITH L . G A R W O O D ,
Director
GLENN E. LONEY, Assistant
ELLEN MALAND, Assistant
DOLORES S. SMITH, Assistant
DIVISION
OF
SUPERVISION
Director
Director
Director
BANKING
AND
REGULATION
WILLIAM TAYLOR, Staff
Director
DON E. KLINE, Associate
Director
FREDERICK M. STRUBLE, Associate
Director
WILLIAM A. RYBACK, Deputy Associate
Director
STEPHEN C. SCHEMERING, Deputy Associate
Director
RICHARD SPILLENKOTHEN, Deputy Associate
Director
HERBERT A . BIERN, Assistant
JOE M. CLEAVER, Assistant
Director
Director
ROGER T. COLE, Assistant
Director
JAMES I. GARNER, Assistant
Director
JAMES D . GOETZINGER, Assistant
Director
MICHAEL G. MARTINSON, Assistant
Director
ROBERT S. PLOTKIN, Assistant
Director
SIDNEY M . SUSSAN, Assistant
Director
LAURA M. HOMER, Securities
Director
DIVISION
OF RESEARCH
Director
AND
STATISTICS
Director
EDWARD C. ETTIN, Deputy
Director
THOMAS D . SIMPSON, Associate
Director
SECRETARY
WILLIAM W . W I L E S ,
Director
Director
RALPH W . SMITH, JR., Assistant
MICHAEL J. PRELL,
OFFICE
FINANCE
Credit Officer
LAWRENCE SLIFMAN, Associate
Director
DAVID J. STOCKTON, Associate
Director
MARTHA BETHEA, Deputy Associate
Director
PETER A. TINSLEY, Deputy Associate
Director
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
(Administration)
DIVISION
OF MONETARY
DONALD L . KOHN,
AFFAIRS
Director
DAVID E. LINDSEY, Deputy Director
BRIAN F. MADIGAN, Assistant
Director
RICHARD D . PORTER, Assistant
Director
NORMAND R.V. BERNARD, Special Assistant
OFFICE
OF THE INSPECTOR
to the Board
GENERAL
BRENT L. BOWEN, Inspector
General
BARRY R. SNYDER, Assistant
Inspector
General
A87
and Official Staff
EDWARD W . KELLEY, JR.
DAVID W . MULLINS, JR.
JOHN P. L A WARE
OFFICE OF
STAFF DIRECTOR
FOR
S. DAVID FROST, Staff
Director
WILLIAM SCHNEIDER, Special Assignment:
Director, National Information Center
PORTIA W. THOMPSON, Equal Employment
Programs Officer
DIVISION
OF HUMAN
MANAGEMENT
DAVID L . SHANNON,
THEODORE E. ALLISON, Staff
Project
Opportunity
LOUISE L. ROSEMAN, Assistant
FLORENCE M. YOUNG, Assistant
CONTROLLER
Controller
OF SUPPORT
SERVICES
Director
GEORGE M. LOPEZ, Assistant
Director
DAVID L. WILLIAMS, Assistant
Director
OFFICE OF THE EXECUTIVE
INFORMATION
RESOURCES
ALLEN E . BEUTEL, Executive
DIRECTOR
FOR
MANAGEMENT
Director
STEPHEN R. MALPHRUS, Deputy Executive Director
MARIANNE M. EMERSON, Assistant
Director
EDWARD T. MULRENIN, Assistant Director for Special
Projects
OF HARDWARE
BRUCE M . BEARDSLEY,
AND
ELIZABETH B. RIGGS, Assistant
DIVISION
OF APPLICATIONS
STATISTICAL
SERVICES
WILLIAM R . JONES,
Director
Director
DEVELOPMENT
Director
ROBERT J. ZEMEL, Associate
Po KYUNG KIM, Assistant
Director
Director
RAYMOND H . MASSEY, Assistant
RICHARD C. STEVENS, Assistant
SOFTWARE
Director
DAY W. RADEBAUGH, JR., Assistant
Director
Director
Director
Director
Director
EARL G. HAMILTON, Assistant
Director
JOHN H. PARRISH, Assistant
Director
STEPHEN J. CLARK, Assistant Controller (Programs and
Budgets)
DARRELL R. PAULEY, Assistant Controller (Finance)
DIVISION
SYSTEMS
RESERVE
OF FEDERAL
OPERATIONS
CHARLES W . BENNETT, Assistant
Director
JACK DENNIS, JR., Assistant
Director
Director
Director
Director
GEORGE E . LIVINGSTON,
DIVISION
DIVISION
BANK
DAVID L. ROBINSON, Associate
BRUCE J. SUMMERS, Associate
Director
FRED HOROWITZ, Assistant
ROBERT E . FRAZIER,
Director
C L Y D E H . FARNSWORTH, J R . ,
Director
ANTHONY V . DIGIOIA, Assistant
JOSEPH H . HAYES, JR., Assistant
OF THE
FOR
ACTIVITIES
RESOURCES
JOHN R. WEIS, Associate
OFFICE
OFFICE OF STAFF DIRECTOR
FEDERAL
RESERVE
BANK
MANAGEMENT
AND
Director
Director
A88
Federal Reserve Bulletin • December 1990
Federal Open Market Committee
FEDERAL OPEN MARKET
COMMITTEE
MEMBERS
A L A N GREENSPAN, Chairman
W A Y N E D . ANGELL
E D W A R D G . BOEHNE
ROBERT H . BOYKIN
E . GERALD CORRIGAN, Vice
W . L E E HOSKINS
E D W A R D W . KELLEY, JR.
JOHN P . L A WARE
ALTERNATE
ROBERT P . BLACK
ROBERT P . FORRESTAL
Chairman
D A V I D W . M U L L I N S , JR.
MARTHA R . SEGER
GARY H . STERN
MEMBERS
SILAS K E E H N
JAMES H . OLTMAN
ROBERT T . PARRY
STAFF
DONALD L. KOHN, Secretary
and
NORMAND R . V . BERNARD, Assistant
Economist
Secretary
GARY P. GILLUM, Deputy Assistant
Secretary
J. VIRGIL MATTINGLY, JR., General
Counsel
ERNEST T. PATRIKIS, Deputy General
MICHAEL J. PRELL,
EDWIN M . TRUMAN,
Counsel
Economist
Economist
JOHN M . DAVIS, Associate
RICHARD G. DAVIS, Associate
Economist
Economist
RICHARD W . LANG, Associate
DAVID E. LINDSEY, Associate
LARRY J. PROMISEL, Associate
ARTHUR J. ROLNICK, Associate
HARVEY ROSENBLUM, Associate
CHARLES J. SIEGMAN, Associate
THOMAS D . SIMPSON, Associate
DAVID J. STOCKTON, Associate
Economist
Economist
Economist
Economist
Economist
Economist
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
THOMAS H . O ' B R I E N ,
PAUL HAZEN, Vice
IRA STEPANIAN, First District
WILLARD C. BUTCHER, Second District
TERRENCE A. LARSEN, Third District
THOMAS H. O'BRIEN, Fourth District
FREDERICK DEANE, JR., Fifth District
VACANCY, Sixth District
President
President
B. KENNETH WEST, Seventh District
DAN W. MITCHELL, Eighth District
LLOYD P. JOHNSON, Ninth District
JORDAN L. HAINES, Tenth District
RONALD G. STEINHART, Eleventh District
PAUL HAZEN, Twelfth District
HERBERT V . PROCHNOW,
WILLIAM J. KORSVIK, Associate
Secretary
Secretary
A89
and Advisory Councils
CONSUMER ADVISORY
COUNCIL
WILLIAM E. ODOM, Dearborn, Michigan, Chairman
JAMES W. HEAD, Berkeley, California, Vice Chairman
GEORGE H . BRAASCH, O a k b r o o k , I l l i n o i s
KATHLEEN E . KEEST, B o s t o n ,
BETTY TOM CHU, Arcadia, California
A.J. (JACK) KING, Kalispell, Montana
COLLEEN D. MCCARTHY, Kansas City, Missouri
CLIFF E . COOK, T a c o m a , W a s h i n g t o n
JERRY D . CRAFT, A t l a n t a , G e o r g i a
DONALD C. DAY, Boston, Massachusetts
R.B. (JOE) DEAN, JR., Columbia, South Carolina
WILLIAM C . DUNKELBERG, P h i l a d e l p h i a , P e n n s y l v a n i a
JAMES FLETCHER, C h i c a g o , I l l i n o i s
GEORGE C . GALSTER, W o o s t e r , O h i o
E . THOMAS GARMAN, B l a c k s b u r g , V i r g i n i a
DEBORAH B . GOLDBERG, W a s h i n g t o n , D . C .
MICHAEL M . GREENFIELD, S t . L o u i s , M i s s o u r i
ROBERT A . HESS, W a s h i n g t o n , D . C .
BARBARA K A U F M A N , S a n F r a n c i s c o , C a l i f o r n i a
THRIFT INSTITUTIONS
ADVISORY
Massachusetts
MICHELLE S . MEIER, W a s h i n g t o n , D . C .
L I N D A K . PAGE, W o r t h i n g t o n , O h i o
BERNARD F . PARKER, J R . , D e t r o i t , M i c h i g a n
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, B a l t i m o r e , M a r y l a n d
CLIFFORD N . ROSENTHAL, N e w Y o r k , N e w Y o r k
A L A N M . SILBERSTEIN, N e w Y o r k , N e w Y o r k
RALPH E . SPURGIN, C o l u m b u s , O h i o
N A N C Y HARVEY STEORTS, D a l l a s , T e x a s
DAVID P. WARD, C h e s t e r , N e w J e r s e y
LAWRENCE WINTHROP, P o r t l a n d , O r e g o n
COUNCIL
DONALD B. SHACKELFORD, Columbus, Ohio, President
MARION O. SANDLER, Oakland, California, Vice President
CHARLOTTE CHAMBERLAIN, LOS A n g e l e s , C a l i f o r n i a
DAVID L . HATFIELD, K a l a m a z o o , M i c h i g a n
LYNN W. HODGE, Greenwood, South Carolina
A D A M A . JAHNS, C h i c a g o , I l l i n o i s
H.C. KLEIN, Jacksonville, Arkansas
ELLIOT K . K N U T S O N , S e a t t l e , W a s h i n g t o n
JOHN WM. LAISLE, Oklahoma City, Oklahoma
PHILIP E . L A M B , S p r i n g f i e l d , M a s s a c h u s e t t s
CHARLES B . S T U Z I N , M i a m i , F l o r i d a
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Consumer Handbook to Credit Protection Laws
Federal Reserve Glossary
A Guide to Business Credit for Women, Minorities, and
Small Businesses
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
Home Mortgages: Understanding the Process and Your
Rights
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.
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.
CONSUMER EDUCATION
Short pamphlets suitable for classroom
are available without charge.
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
A91
The Right to Financial Privacy Act
Signature Rules in Community Property States: Regulation B
Signature Rules: Regulation B
Timing Requirements for Adverse Action Notices: Regulation B
What An Adverse Action Notice Must Contain: Regulation B
Understanding Prepaid Finance Charges: Regulation Z
156. INTERNATIONAL TRENDS FOR U . S . BANKS A N D B A N K -
ING MARKETS, by James V. Houpt. May 1988. 47 pp.
157. M 2 PER U N I T 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. T H E ADEQUACY A N D CONSISTENCY OF MARGIN R E QUIREMENTS IN THE MARKETS FOR STOCKS A N D DERIV-
ATIVE PRODUCTS, by Mark J. Warshawsky with the
assistance of Dietrich Earnhart. September 1989. 23 pp.
STAFF STUDIES: Summaries Only Printed in the
Bulletin
159. N E W D A T A ON THE PERFORMANCE OF N O N B A N K S U B SIDIARIES OF B A N K HOLDING COMPANIES, b y N e l l i e
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.
160. BANKING MARKETS A N D THE U S E OF FINANCIAL SERVICES BY SMALL A N D M E D I U M - S I Z E D BUSINESSES, b y
Liang and Donald Savage. February 1990. 12 pp.
Gregory E. Elliehausen and John D. Wolken. September 1 9 9 0 . 3 5 pp.
Staff Studies 114-145 are out of print.
146. T H E ROLE OF THE PRIME RATE IN THE PRICING OF
BUSINESS LOANS BY COMMERCIAL B A N K S , 1 9 7 7 - 8 4 , b y
Thomas F. Brady. November 1985. 25 pp.
147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) INDEXES OF THE MONETARY AGGREGATES, b y H e l e n T .
Farr and Deborah Johnson. December 1985. 42 pp.
148. T H E MACROECONOMIC A N D SECTORAL EFFECTS OF THE
ECONOMIC RECOVERY TAX ACT: SOME SIMULATION
RESULTS, by Flint Brayton and Peter B. Clark. December 1985. 17 pp.
1 4 9 . T H E OPERATING PERFORMANCE OF ACQUIRED FIRMS IN
BANKING BEFORE A N D AFTER ACQUISITION, b y S t e p h e n
A. Rhoades. April 1986. 32 pp.
150. STATISTICAL COST ACCOUNTING MODELS IN BANKING:
A REEXAMINATION A N D AN APPLICATION, b y J o h n T .
Rose and John D. Wolken. May 1986. 13 pp.
151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRIC-
ING FROM 1983 THROUGH 1985, by Patrick I. M a h o n e y ,
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, b y C a r o l y n D . D a v i s a n d
Alice P. White. September 1987. 14 pp.
154. T H E EFFECTS ON CONSUMERS AND CREDITORS OF PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES, b y
Glenn B. Canner and James T. Fergus. October 1987.
26 pp.
155. T H E F U N D I N G OF PRIVATE PENSION PLANS, b y M a r k J.
Warshawsky. November 1987. 25 pp.
REPRINTS OF Bulletin
ARTICLES
Most of the articles reprinted do not exceed 12 pages.
Limit of 10 copies
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.
Mutual Recognition: Integration of the Financial Sector in the
European Community. 9/89.
The Activities of Japanese Banks in the United Kingdom and
in the United States, 1980-88. 2/90.
Industrial Production: 1989 Developments and Historical
Revision. 4/90.
U.S. International Transactions in 1989. 5/90.
Recent Developments in Industrial Capacity and Utilization.
6/90.
Developments Affecting the Profitability of Commercial
Banks. 7/90.
Recent Developments in Corporate Finance. 8/90.
A92
ANTICIPATED SCHEDULE OF RELEASE DATES FOR PERIODIC RELEASES—BOARD
OF
OF THE FEDERAL RESERVE SYSTEM1 (PAYMENT MUST ACCOMPANY
REQUESTS.)
Weekly Releases
Annual
rate
Approximate
release days
GOVERNORS
Date of period to which data
refer
• Aggregate Reserves of Depository Institutions and
the Monetary Base. H.3 (502) [1.20]
$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 Commercial 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
• 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 and Capacity Utilization G.17
(419) [2.12, 2.13]
$15.00
• Loans and Securities at all Commercial Banks. G.7
(407) [1.23]
$ 5.00
• Major Nondeposit Funds of Commercial Banks.
G.10 (411) [1.24]
$ 5.00
Monthly
Week ended previous
Wednesday
Week ended previous Saturday
Wednesday, 3 weeks earlier
Releases
• Research Library—Recent Acquisitions. G. 15 (417)
• Selected Interest Rates. G.13 (415) [1.35]
Free of
charge
$ 5.00
Midmonth
3rd week of month
3rd week of month
Previous month
Previous month
Previous month
1st of month
Previous month
3rd working day of
month
Previous month
1. R e l e a s e dates are those anticipated or usually met. H o w e v e r , please note that for s o m e releases there is normally a certain variability b e c a u s e
of reporting or processing procedures. Moreover, for all series unusual circumstances m a y , from time to time, result in a release date being later
than anticipated.
T h e respective Bulletin tables that report the data are designated in brackets.
A93
Quarterly Releases
Annual
rate
Approximate
release days
• 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.l (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 to Business. 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
Semiannual
Date of period to which data
refer
Releases
• Balance Sheets for the U.S. Economy. C.9 (108)
$ 5.00
October and April
Previous year
• Report on the Terms of Credit Card Plans. E.5
(115)
$ 5.00
March and August
January and June
$ 5.00
February
End of previous June
Annual
Releases
• Aggregate Summaries of Annual Surveys of
Securities Credit Extension. C.2 (101)
A94
Index to Statistical Tables
References are to pages A3-A85 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 19, 20, 75, 80
Assets and liabilities (See also Foreigners)
Banks, by classes, 18-20
Domestic finance companies, 36
Federal Reserve Banks, 10
Financial institutions, 26
Foreign banks, U.S. branches and agencies, 21, 82-85
Automobiles
Consumer installment credit, 39, 40
Production, 49, 50
BANKERS acceptances, 9, 23, 24
Bankers balances, 18-20 (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 34
Rates 24
Branch banks, 21, 57, 82-85
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
Federal Reserve Banks, 10
Central banks, discount rates, 69
Certificates of deposit, 24
Commercial and industrial loans
Commercial banks, 16, 19, 76, 81, 82, 83
Weekly reporting banks, 19-21
Commercial banks
Assets and liabilities, 18-20, 76, 81
Commercial and industrial loans, 16, 18, 19, 20, 21, 76,
81, 82-85
Consumer loans held, by type and terms, 39, 40, 76, 81,
82-85
Loans sold outright, 19
Nondeposit funds, 17
Real estate mortgages held, by holder and property, 38
Terms of lending 72—81
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, 27, 39. (See also Thrift institutions)
Currency and coin, 18
Currency in circulation, 4, 13
Customer credit, stock market, 25
DEBITS to deposit accounts, 15
Debt (See specific types of debt or
Demand deposits
Banks, by classes, 18-21
securities)
Demand deposits—Continued
Ownership by individuals, partnerships, and corporations, 22
Turnover, 15
Depository institutions
Reserve requirements, 8
Reserves and related items, 3, 4, 5, 12
Deposits (See also specific types)
Banks, by classes, 3, 18-20, 21
Federal Reserve Banks, 4, 10
Turnover, 15
Discount rates at Reserve Banks and at foreign central
banks and foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
EMPLOYMENT, 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, 82-85
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4, 10, 19, 20
Foreign exchange rates, 70
Foreign trade, 56
A95
Foreigners
Claims on, 57, 59, 62, 63, 64, 66
Liabilities to, 20, 56, 57, 59, 60, 65, 67, 68
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
Commercial banks, 72-81
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
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
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
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
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
N e w 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
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
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)
A96
Index to Volume 76
GUIDE TO PAGE REFERENCES IN MONTHLY ISSUES
Issue
January
February
March
April
May
June
Text
1-38
39-106
107-186
187-266
267-410
411-476
Issue
"A" Pages
1-77
1-79
1-89
1-70
1-70
1-81
Index to
tables
84-85
86-87
96-97
78-79
78-79
90-91
The "A" pages consist of statistical tables and reference information.
1987 Censuses of Manufactures and Mineral Industries
Pages
200
Agriculture
Loans, bank profitability article
481
American Banker, funds availability statement
305
American Institute of CPAs, in statement regarding
regulatory accounting standards
912
American National Standards Institute
213
Angell, Wayne D.
Expedited Funds Availability, statement
304
Federal Reserve System's expenses and budget, statement . 619
Regulatory accounting standards, statement
911
Security of large-dollar value electronic funds transfer
systems, statement
211
Armitage, Kenneth, article
187
Articles
Activities of Japanese Banks in the United Kingdom
and in the United States, 1980-88
39
Banking markets and the use of financial services
by small and medium-sized businesses
801
1009
Current fiscal situation in state and local governments
Developments affecting the profitability of commercial
banks
477
Federal Reserve in the payments system, white paper
293
Industrial production: 1989 developments
and historial revision
187
Monetary Policy Reports to the Congress
107, 711
Mortgage refinancing
604
Nonbank activities of bank holding companies
280
Policy targets and operating procedures in the 1990s
1
Recent developments in corporate
finance
593
Recent developments in industrial capacity and utilization . 411
Transmission channels of monetary policy :
How have they changed?
985
Treasury and Federal Reserve Foreign
Exchange Operations
8, 205, 500, 818
U.S. exchange rate policy: Bretton Woods to present
891
U.S. international transactions in 1989
267
Aschauer, David, in article on fiscal status
1016
July
August
September....
October
November ....
December
Text
All- -592
593--710
711--800
801--890
891--984
985--1072
"A"
pages
1-70
1-70
1-87
1-73
1-70
1-85
Index to
tables
78-79
82-83
94-95
80-81
78-79
94-95
Statistical tables are indexed separately (see p. A94 of this issue).
Pages
Association of Bank Holding Companies, securities
activities statement
Aurora system, Chicago Board of Trade, globalization
of financial markets, article
317
509
BANC A Nazionale del Lavoro, in foreign banking
statement
1032
Bank Holding Company Act of 1956
Orders issued under
50th State Bancorporation
706
7L Corporation
1068
A.B.N. - Sticking, Amsterdam, The Netherlands .. 101, 263
ABN AMRO Holding, N.V., Amsterdam,
The Netherlands
786, 974, 1061
ABN/LaSalle North America, Inc
101, 263
Ace Gas Inc
36
Alameda Bancorporation
390
Algemene Bank Nederland N.V., Amsterdam,
The Netherlands
101,263
Allegheny Bankshares Corporation
34
Allegiant Bancorp, Inc
884
Alliance Bancorporation
101
Allied Irish Banks pic, Dublin, Ireland
586
Alpha Banco, Inc
884
Alpine Banks of Colorado
1068
Alton Bancshares, Inc
261
AMBANCCorp
471
AMCORE Financial, Inc
390, 392, 588
American Capital Corporation
794
American National Corporation
390
American State Financial Corporation of Delaware
34
AmeriFirst Bancorporation, Inc
471
Ameritrust Company National Association
579
Ameritrust Corporation
253
AmeriWest Corporation
971
AmSouth Bancorporation
957
AmSouth Bank of Tennessee
957
Amsterdam-Rotterdam Bank N. V., Amsterdam,
The Netherlands
29, 682, 974
ANB Financial Corporation
586
A97
Pages
Bank Holding Company Act of 1956-Continued
Orders issued under—Continued
Appleton City Bancshares, Inc
68
Area Bancshares Corporation
474
Arkansas Bank and Trust Company
705
Arkansas Bankers'Bancorporation, Inc
471
Arkansas Union Bankshares, Inc
974
Arrow Bank Corporation
706
Aurora First National Company
971
Avantor Financial Corporation
779
B & T Holding Company
473
Banc One Corporation
756, 971
Banc One Financial Corporation
884
BancaCommercialeltalianaS.p.A., Milan, Italy
649
Banco Bilbao Vizcaya, S.A., Bilbao, Spain
971
Bancommunity Service Corporation
101
Bancorp Hawaii, Inc
759
Bancroft State Bancshares, Inc
34
Bancshares 2000, Inc
390
Bancshares of McLouth, Inc
34
Bank Corporation of Georgia
884
Bank of Montana Acquisition Corporation
471
Bank of Montana System
471, 971
Bank of Montreal, Montreal, Quebec, Canada
971, 975
Bank of Montreal, Toronto, Ontario, Canada
652
Bank of New York Company, Inc
100, 867
Bank of Nova Scotia, Toronto, Ontario, Canada
455
Bank of Novia Scotia, Toronto, Ontario, Canada
545
Bank of Southside Virginia Corporation
850
Bank of Tokyo, Ltd., Tokyo, Japan
546,654
Bank Shares, Incorporated
588, 975
Bank South Corporation
1067
BankAmerica Corporation
244, 248, 585, 970
Bankers Corp
101
Bankers Trust of Alabama, Inc
34
Bankmont Financial Corp
971, 975
Banque Indosuez, Paris, France
183, 887
Barclays Bank PLC, London, England ... 100, 158, 588, 794
Barclays PLC, London, England
100,158, 588, 794
Barclays U.S. Holdings, Inc
588
Barclays USA Inc
588
BarclaysAmericanCorporation
588
Barnett Banks, Inc
68, 970, 1067
Barrett Bancorporation, Inc
586
Barrett Holding Company
794
Barrow Bancshares, Inc
34
Bay banks, Inc
100
BB&T Financial Corporation
796, 1067
BB&T Financial Services, Inc
887
Benton State Bank
705
Bergen Bank A/S, Bergen, Norway
457
BHC Holdings
104
Blackhawk Bancorp, Inc
471
Blackhawk Bancorporation
884
Blue Ridge Bancshares, Inc
1068
Blue Valley Ban Corp
34
BMR Financial Group, Inc
471
Bonduel Bancorp, Inc
-971
Border Bancshares, Inc
261
Boscobel Bancorp, Inc
884
Bourbon Bancshares, Inc
1070
Boyle Bancorp, Inc
1066
Bradford Bankshares, Inc
181
Brewer Bancorp, Inc
586
Bright Financial Services, Inc
1071
Britton Bancshares, Inc
471
Broadway Bancshares of Delaware, Inc
101
Brotherhood Bankshares, Inc
181
Bruning Bancshares, Inc
1069
Buckley Bancorp, Inc
34
Bumpushares, Inc
884
Business Banc of America, Inc
586
C&S/Sovran Corporation
779, 853, 857,1067
Pages
Bank Holding Company Act of 1956-Continued
Orders issued under-Continued
C.B. Bancshares, Inc
794
C.S.B. Company
972
Cameron Bancorp, Inc
471
Campagnie Financiere de Suez, Paris, France
183
Canadian Imperial Bank of Commerce, Toronto,
Ontario, Canada
158, 548
Capital InterAmerican Bancorp
754
Capitol Bancorp, Ltd
34, 794
Carlson Bancshares, Inc
471,1070
Carolina First Corporation
887
Carrollton Bancorp
390
Cascade Bancorp
884
Casey County Bancorp, Inc
471
Cass Commercial Corporation
706
Cathay Bancorp, Inc
971
Catherine Stuart Schmoker Family Partnership
974
CBR Bancshares Corp
971
CCNB Corporation
392
Cedar Vale Bank Holding Company
257
Center Banks Incorporated
261
Center Financial Corporation
23
Central Banc, Inc
706
Central Bancorporation
586
Central Community Corporation
971
Central National Bank Corporation
390
Centura Banks, Inc
869
Century Bancshares, Inc
706
Century Financial Corporation
101
Century National Corporation
471
Century South Banks, Inc
261
Chalybeate Springs Corporation
971
Chase Manhattan Corporation
100,263, 658
Chemical Banking Corporation
100, 660, 662
Cheshire Financial Corporation
453
Cho Hung Bank, Seoul, Korea
755
Chrisman-Sawyer Bancshares, Inc
181
Church Green Bancorp, Inc
473
Citicorp
70, 263, 549, 664, 666
Citizens & Merchants Corporation
101
Citizens and Southern Corporation
181, 1067
Citizens and Southern Florida Corporation
181
Citizens Bancorp of Winfield, Inc
794
Citizens Corporation
101
Citizens Financial Services, Inc
887
Citizens National Bancorp, Inc
884
Citizens National Corporation
261
Claremont Financial Services, Inc
261
Cloverdale Bank Corporation
1071
CNB Bancorp
971
CNB Bancshares, Inc
887, 971
CNB Financial Corporation
706
Columbus Corp
471
Commercial Bancorp of Gwinnett, Inc
586
Commercial National Financial Corporation
471
Commonwealth Bancshares Corporation
706
Community Bancorporation
971
Community Bancshares of Wisconsin, Inc
885
Community Bank Corporation
885
Community Bankshares, Inc
390
Community Financial Bancorp., Inc
706
Community Investment Bancorporation, Inc
471
Community National Bancorporation
261
Community National Bancorporation
of South Carolina, Inc
971
Compagnie Financiere de Suez, Paris, France
887
Conrad Company
972
Constitution Bancorp, Inc
34
Constitution Bank
34
CoreStates Financial Corp
176
Corn Belt Bancorp, Inc
471
Country Bank Shares Corporation
101
A98
Federal Reserve Bulletin • December 1990
Pages
Bank Holding Act of 1956-Continued
Orders issued under—Continued
Country Bank Shares, Inc
794, 972
Credit Suisse, Zurich, Switzerland
1070
Creditanstalt-Bankverein, Vienna, Austria
761
Crestar Financial Corporation
34
CS Holding, Zurich, Switzerland
1070
CSRA Bank Corp
586
Cumberland Savings Bancshares, Inc
706
D.R.N.B.,Inc
471
Dai-Ichi Kangyo Bank, Limited,
Tokyo, Japan
75,960,975
Dakota Bankshares, Inc
101
Dassel Investment Company
706
DBT Holding Company
101
Decatur Bancshares, Inc
972
Del Rio National Bancshares, Inc
471
Deposit Guaranty Corporation
24
Diamond State Bancorp, Inc
586
Donnelly Bancshares, Inc
103
Drummond Banking Company
34
Dunlap Iowa Holding Co
183
Durand Bancorp, Inc
181
E & A Associates
885
Eagle Bancorp, Inc
586
East Texas Financial Corporation
101
Eastern Bank Corporation
794
EastPark Bancshares, Inc
472
El Capitan Bancshares, Inc
34
El Paso Bancshares, Inc
390
Elmwood Bancshares, Inc
36
Emclaire Financial Corp
261
Empire Capital Corporation
472
ENB Holding Company
472
Enterprise Financial Corporation
706
Estes Park Bank Restated Employee Stock
Ownership 401(k) Plan
102
Evergreen Bancshares, Inc
706
Exchange Bankshares Corporation of Kansas
390
F & M Bancorporation, Inc
472
F & M Financial Services Corporation
34
F.N.B. Corporation
261,796
F.W.S.F. Corporation
707
Farmers National Bancorp, Inc
261
Farmers National Bancshares of Bethany, Inc
972
Farmers State Bancorporation, Inc
261
Fanners State Bank Corporation of Fort Morgan
261
FB&T Corporation
796
FBOP Corporation
551
FCB Corporation
390
FCFTInc
261
FDH Bancshares, Inc
392
Financial Bancshares, Inc
181, 586
Financial Center Corporation
885
Financial Institutions, Inc
34
Financial Trust Corporation
474
First Affiliated Bancorp, Inc
472
First American Bancshares, Inc
472
First American Bank Corporation
706
First Ascension Bancorp, Inc
885
First Bancorp of Kansas
1069
First Bancorporation of Ohio
796
First Bank Corp
102
First Bank Group, Inc
885
First Bank System, Inc
1051
First Banks, Inc
181,669,794
First Blanchester Bancshares, Inc
1069
First Busey Corporation
36
First Camden Bancshares, Inc
794
972
First Canadian Bancorp, Inc
First Charlotte Financial Corporation
707
First Chicago Corporation
793, 970
First Citizens Banc Corp
374
Pages
Bank Holding Company Act of 1956-Continued
Orders issued under—Continued
First Citizens BancShares, Inc
975
First Citizens Financial Corp
1069
First City, Inc
182
First Colonial Bankshares Corporation
390,472
First Commerce Bancorp, Inc
102
First Commerce Bancshares, Inc
974
First Commercial Corporation
180, 705
First Commonwealth Financial Corporation
470
First Community Bank Group, Inc
885
First Dakota Financial Corporation
1069
First Eastern Corporation
764
First Eldorado Bancshares, Inc
182
First Empire State Corporation
970
First Exchange Corp
390
First Farmers Financial Corp
1069
First Fidelity Bancorp, Inc
707
First Financial Bancorp
885, 887, 1070
First Financial Corporation
671, 885,1069
First Florida Banks, Inc
1067
First Formoso, Inc
541
First Grayson Bancorp, Inc
707
First Gwinnett Bancshares, Inc
794
First Howard Bancshares, Inc
885
First Illinois Corporation
586
First Interstate Corporation of Wisconsin
375
First Lockney Bancshares, Inc
102
First Maiden Bancshares, Inc
182
First Maryland Bancorp
586
First Mid-America Bancorp, Inc
182
First Midwest Bancorp, Inc
707
First Midwest Corporation of Delaware
794
First Mutual Bancorp of Illinois, Inc
182
First National Bank of Woodville
587
First National Financial Corporation
390
First National Insurance Agency, Inc
972
First National of Nebraska, Inc
587
First New Mexico Financial Corporation
472
First of America Bank Corporation
36, 474,796, 972
First of America Bank Corporation-Indiana
972
First of American Bank Corporation
796
First of Fort Morgan, Inc
707
First Patriot Bankshares Corporation
182
First Perryton Bancorp, Inc
472
First Place Financial Corporation
472
First Regional Bancorp, Inc
859
First Regional Corporation
766
First Security Bankshares, Inc
885
First Security Corporation
181, 470, 586
First Seven Day Financial, Inc
587
First Sioux Bancshares, Ltd
588
First Southern Bancorp, Inc
102
First State Bancorp of Monticello, Inc
182
First State Bancorp of Princeton
182
First State Bancorp, Inc
36, 885
376
First State Corporation
First Sterling Bancorp, Inc
102
First Union Corporation
83,174, 1067
First Virginia Banks, Inc
261
First Wachovia Corporation
705, 1067
First Western Bancorp, Inc
1070
Firstar Corporation
35,707
Firstar Corporation of Illinois
Firstar Corporation of Minnesota
7
FirsTier Financial, Inc
33, 10
FirsTrust, Inc
8
Fleet/Norstar Financial Group, Inc
459, 6
Fleet/Norstar New York, Inc
4
FMS Bancorp, Inc
1
FNB Newton Bankshares, Inc
9
FNB Rochester Corp
i
Ford Bank Group, Inc
Index to Volume 76
Pages
Bank Holding Company Act of 1956-Continued
Orders issued under—Continued
Fortune 44 Company
102
Fourth Financial Corporation
102,472
Fuji Bank, Limited, Tokyo, Japan
104, 768
Fulton Financial Corporation
390
Gadsden Corporation
972
Garfield County Bancshares
972
Garwin Bancorporation
1069
Gaylord Bancorporation, Ltd
885
George Gale Foster Corporation
972
Georgetown National Bank Holding Company Inc
587
Globalshare, Limited, Road Town, Tortola,
British Virgin Islands
472
GNW Financial Corporation
885
Gold Coast Bancshares, Inc
104
Goodenow Bancorporation
182
Gore-Bronson Bancorp, Inc
182
Graymont Bancorp, Inc
35
Great River Bancshares, Inc
391
Greater Chicago Financial Corp
102
Greeley Bancshares, Inc
261
Gulfstream Financial Services, Inc
104
H. Pat Henson Company
35
Hampton Family Partnership
794
Happy Bancshares, Inc
972
Harris Bankcorp, Inc
971, 975
HartsvilleBancshares, Inc., Employee
Stock Ownership Plan
885
Heartland Bankshares, Inc
885
Hi-Bancorp, Inc
35
High Plains Bancshares, Inc
1069
High Point Bank Corporation
262
Highlands Bankshares, Inc
794
HNB Corporation
391
Hogue Holding Company, Inc
102
Holly Grove Bancshares, Inc
35
Home Credit Corporation
102
HomeTown Bancorp, Inc
885
Hometown Bancshares, Inc
35, 391
Hongkong and Shanghai Banking Corporation
Limited, Hong Kong, B.C.C
37, 100
Hongkong and Shanghai Banking Corporation,
Hong Kong
770
Honor Bancorp, Inc
587
Hope Bancshares, Inc
472
HSBC Holdings, B.V., Amsterdam,
The Netherlands
37, 100, 770
Huntington Bancshares Incorporated
33, 100
Huntington Bancshares of West Virginia, Inc
33
Huxley Bancorp
885
Hy-Vee Food Stores, Inc
1056
INB Financial Corporation
391, 795, 972
Industrial Bank of Japan, Limited, Tokyo, Japan
708
International Brotherhood of Boilermakers,
Iron Ship Builders, Blacksmiths,
Forgers, and Helpers
182
Iowa National Bankshares Corp
391
Irwin Union Corporation
392
J.P. Morgan & Company Incorporated
26, 552
J.R. Montgomery Bancorporation
391
Jackson Bancorporation
972
James Stuart, Jr. Family Partnership
974
JDJ Banco, Inc
972
Jessup Family Limited Partnership
472
John Warner Financial Corporation
707
Jonesboro Bancompany, Inc
885
Kansas Bank Corporation
35
Kaw Valley Bancshares, Inc
472
KBT Bancshares, Inc
35
KD Bancshares, Inc
474
Kellett, N. V., Curacao, Netherlands Antilles ... 37, 100, 770
Keweenaw Financial Corporation
472
A99
Pages
Bank Holding Company Act of 1956-Continued
Orders issued under
Key Bancshares of New York, Inc
1067
Key Bancshares of Wyoming
884
Key Centurion Bancshares, Inc
707
KeyCorp
884, 970, 1067
Kirbyville Bancshares, Inc
587
L.B.T. Bancorporation
102
L.S.B. Bancshares, Inc
472
La Plata Bancshares, Inc
795
Lafayette Bancshares
587
Landmark/Community Bancorp, Inc
1069
Las Cruces B.R.G., Inc
182
LaSalle National Corporation
101,263
Liberty National Bancorp, Inc
35, 37,461
Lincoln County Bancorp, Inc
887
Lincoln Financial Corporation
102, 182
Lincoln Holding Company
102
Lisco State Company
31
Logan Bancorporation, Inc
795
Long-Term Credit Bank of Japan, Limited,
Tokyo, Japan
554
Lonoke Bancshares, Inc
262
Lowry Facilities, Inc
972, 1069
M & B Capital Company
886
M & F Financial Corp
391
Main Street Banks Incorporated
886
Manning Financial Services, Inc
707
Manufacturers Hanover Corporation
100, 674, 774, 960
Manufacturers National Corporation
795
Marathon Financial Corporation
886
Marine Midland Banks, Inc
100
Marshall & Ilsley Corporation
556, 795, 886,1069
Maryland Publick Banks, Inc
35
MC Bancshares, Inc
886
Mercantile Bancorp, Inc
473
Mercantile Bankshares Corporation
182, 973
Merchant Bankshares Group, Inc
182
Merchants Holding Company
973
Meridian Bancorp, Inc
705
Metro Armored Courier, Inc
676
Metro Financial Corporation
262
Metrocorp, Inc
676
Mid Am, Inc
392, 962
Mid-Michigan Bancorp, Inc
262
Mid-South Bancoip, Inc
181, 454
Mid-Wisconsin Financial Service, Inc
473
MidAmerican Corporation
559, 587
Midland Bank, PLC, London, England
860
Midland States Bancorp, Inc
102
Midlothian State Bank Employees Stock
Ownership Trust
587
Midstates Bancshares, Inc
973
Midwest Banco Bancorporation
887
Minden Exchange Company
795
Mission-Valley Bancorp
391
Missouri Quad Bancshares, Inc
473
Mitsubishi Trust and Banking Corporation,
Tokyo, Japan
588
Mitsui Bank, Limited, Tokyo, Japan
381
Mitsui Taiyo Kobe Bank, Limited, Tokyo, Japan
563
MNC Financial, Inc
37, 89, 263
Monmouth Financial Services, Inc
1069
Montfort Bancorporation, Inc
795
Montgomery Bancorp, Inc
262
Montgomery County Bancshares, Inc
707
Monticello Bankshares, Inc
102
Morley Bancshares Corporation
473
Mountain Parks Financial Corporation
102
Mountain West Banking Corporation
103
Multibank Financial Corp
473
Muskingum Valley Bancshares, Inc
643
Nashoba Bancshares, Inc
391
A100
Federal Reserve Bulletin • December 1990
Pages
Bank Holding Company Act of 1956-Continued
Orders issued under-Continued
National Bank of Canada, Montreal, Canada
588
National City Bancshares, Inc
1069
National City Corporation
77, 887
National Penn Bancshares, Inc
182
National Westminster Bank, PLC, London, England .... 100
Natwest Holdings, Inc
100
NBC Bancorporation, Inc
103
NBN Corporation
707
NBRC Company
473
NCNB Corporation
391, 702, 864, 886, 1067
262, 1069
New East Bancorp, Inc
Newfield Bancorp Inc
707
NI Bancshares Corporation
707
Nichols Financial, Inc
973
Nippon Credit Bank, Ltd., Tokyo, Japan
645
NoDak Bancorporation
886
North Bancorp, Inc
35
North Cascades Bancshares, Inc
795
North Fulton Bancshares, Inc
886
North Salem State Bancorporation
1071
Northeast Bancorp, Inc
100, 973
Northern Illinois Bancorp, Inc
706
Northern Interstate Financial, Inc
391
Northern Missouri Bancshares, Inc
183
Northern Trust Corporation
1069
Northwest Bancorp, Inc
886
Norton Bankshares, Inc
708
Norwest Corporation
35, 79,183, 386, 565, 702,
7%, 873, 887,975, 1058, 1070
Norwest Financial Inc
796
Norwest Financial Services, Inc
796
Norwest Holding Company
873
Oesterreichische Laenderbank Aktiengesellschaft,
Vienna, Austria
37
Ogle County Bancshares, Inc
886
Oklahoma Bancorporation, Inc
1069
Old National Bancorp
973, 1069
Old York Road Bancorp, Inc
795
Olney Bancshares, Inc
587
Omega Financial Coiporation
262
Overton Bancorporation, Inc
973
Overton Bank Shares, Inc
182
Owego National Financial Corporation
182
Oxford Financial Corporation
795
Pacific Capital Bancorp
973
Palm Desert Investments
707
Palmer Bancorp, Inc
795
Park National Corporation
705
Parkway Financial, Inc
103
PBC Bancshares, Inc
1069
PBM Bancorp, Inc
103
Pennyrile Bancshares, Inc
262
Peoples Bancorp, Inc. of Bullitt County
795
Peoples Bancorporation
254
Peoples Bank Employee Stock Ownership Plan
708
Peoples Banking Company
391
Peoples Bankshares, Inc
391
Peoples Financial Services, Inc
473
Peoples Heritage Financial Group, Inc
975
Peotone Bancorp, Inc
35
Piedmont Bancshares Corporation
183
Pikeville National Corporation
587
Pioneer Bancorp, Inc
103
Pioneer Bancshares, Inc
391
Pittsburg Bancshares, Inc
391
PKbanken, Stockholm, Sweden
104
Planters & Merchants Bancshares, Inc
262
Pleasant Hope Bancshares, Inc
473
PNC Financial Corp
104
Pocahontas Bankstock, Inc
1069
Prairie Bancorp, Inc
35, 473
Pages
Bank Holding Company Act of 1956-Continued
Orders issued under-Continued
Prairie Capital, Inc
708
Prairie Farm Bank Shares, Inc
795
Premier Bancorp, Inc
82
Premier Bankshares Corporation
708
Premier Financial Corp
474
Prime Banc Corp
708
Primo Financial Services, Inc
36
Principal National Bancorp, Inc
795
PrivateBancorp, Inc
1070
Provident Bancorp, Inc
93
PSB Financial Corporation
263
Putnam County Bancshares, Inc
473
Raymond Bancorp, Inc
103
Readlyn Bancshares, Inc
708
Redwood Empire Bancorp
887
Republic Bancshares, Inc
103
Resource Bancshares Corporation
708
Rising Sun Bancorp
973
River Forest Bancorp, Inc
587
Rocky Mountain Bancorporation, Inc
1070
Rogers County Bank Holding Company
886
Royal Bancshares, Inc
183, 973
Royal Bank of Canada, Montreal,
Quebec, Canada
158, 567
Royal Bank of Scotland Group pic, Edinburg,
Scotiand
866
Saastopankkien, Keskus-Osake-Pankki (Shopbank),
Helsinki Finland
588
Saban S.A., Panama City, Republic of Panama
103, 587
Salin Bancshares of North Central Indiana, Inc
474
San Diego Bancshares, Inc
795
Sand Springs Bancshares, Inc
973
Sandwich Banco, Inc
587
Sanwa Bank, Limited, Osaka, Japan
568
Savannah Bancorp, Inc
795
SBC Financial Corporation
588
Scott Stuart Family Partnership
974
Screven Bancshares, Inc
973
Seafirst Coiporation
248
Second National Financial Corporation
708
Security Bancshares, Inc
975
Security Chicago, Corp
183
Security Pacific Bancorporation Northwest
884
Security Pacific Bancorporation Southwest
586
Security Pacific Corporation
37, 462, 586, 793, 970
Shelby Financial Corporation
473
Sierra Tahoe Bancorp
795
Silsbee Financial Corporation
973
Societe Generale, Paris, France
776, 797, 887
Society Corporation
104
Sooner Southwest Bankshares, Inc
975
Soperton Naval Stores, Inc
973
South Carolina National Corporation
1060, 1067
Southeast Banking Corporation
1067
Southern Bancorp, Inc
391
Southern Colorado Bancshares, Inc
886
Southern Crescent Financial Corp
36
Southern National Corporation
887,1067
Southside Bancshares Corp
36
SouthTrust Corporation
647, 886, 965
SouthTrust of Florida, Inc
647
Southwest Bancshares, Inc
973
Southwest Holdings, Inc
473
Sovran Financial Corporation
256, 857,1067
Springfield Investment Company
263
Stamford Bank Corp
795
Standard Chartered PLC, London, England
681
Star Banc Corporation
183
State First Financial Corporation
1070
States National Bancshares, Inc
391
Steuben Trust Corporation
587
Index to Volume 76
Pages
Bank Holding Company Act of 1956-Continued
Orders issued under—Continued
STICHTING PRIORITEIT
ABN AMRO HOLDING, Amsterdam,
The Netherlands
786, 1061
Stichting Administratiekantoor
ABN AMRO HOLDING, Amsterdam,
The Netherlands
786, 1061
Stichting Administratiekantoor
ABN AMRO Holding, Amsterdam,
The Netherlands
974
Stichting Amro, Amsterdam,
The Netherlands
29, 682, 794, 974
Stichting Priorieit ABN-AMRO Holding,
Amsterdam, The Netherlands
974
Stuart Family Partnership
974
Sumitomo Bank, Limited, Osaka, Japan
975
Summit Bancorp, Inc
587
Summit Financial Corporation
587
Sun State Capital Corporation
262
SunTrust Banks, Inc
542, 685, 1067, 1068
Surety Capital Corporation
103
Synovus Financial Corp
36, 262, 974
Synovus Financial Corporation
1067
T.C.N.B., Inc
708
Taiyo Kobe Bank, Limited, Kobe, Japan
381
Taylor Bancshares, Inc
473
TB&C Bancshares, Inc
36, 262, 974, 1067
Team Bancshares, Inc
588
TeamBanc, Inc
796
TeamBanc, Inc. Employees' Stock Ownership Plan
796
Texas Financial Bancorporation, Inc
1070
Texas Security Bancshares Corporation
103
Texop Bancshares II, Inc
588
Thompson Financial, Ltd
183
Three Forks Bancorporation
886
Toronto-Dominion Bank, Toronto, Ontario, Canada .... 573
Trans Financial Bancorp, Inc
970
Tri-County Bancorp
1071
Trimpe'slnc
103
TwinCo, Inc
796
Tysons Financial Corporation
974
U.S. Bancorp
793,1053
U.S.B. Corporation
796
UNC Holding, Inc
796
UniBancCorp
796
Unibanc Corp. Employee Stock Ownership Plan
796
Union Bancshares, Inc
262
Union Colony Bancorp
473
Union of Arkansas Corporation
36
Union Planters Corporation
183,474
United Bank Corporation
1071
United Bank Corporation of New York
36
United Missouri Bancshares, Inc
974
United Nebraska Financial Co
887
Univest Corporation
708
USTCorp
975
Valley Bancorporation
183,796
Valley Bancshares, Inc
708
Valley Capital Corporation
36
Vandalia National Corporation
391
Village Bankshares, Inc
103
Village Financial Services, Ltd
36
Vista Bancorp, Inc
886
Wainwright Capital Management Company
473
Walden Holding Company
262
WallCo, Inc
183
Wasatch Bancorp, Inc
587
Wayne Bancorp, Inc
587
Wayne City Bancorp, Inc
974
WCC Management Corp
473
Weatherford Bancorporation, Inc
974
Weetamore Bancorp
103
A101
Pages
Bank Holding Company Act of 1956-Continued
Order issued under—Continued
Weld State Company
36
Wells Fargo & Company
250, 465, 585
West Central Banque Shares, Inc
103
West One Bancorp
181
West One Bancorp, Washington
181
West Point Bancorp, Inc
103, 886, 1070
West Suburban Bancorp, Inc
391, 797
WilberCo
796
WM Bancorp
788
WNB Bancshares, Inc
1070
WRZ Bankshares, Inc
36
Yale Bancorporation
391
Yasuda Trust & Banking Co., Ltd., Tokyo, Japan
184
Yellowstone Trail Bancorporation
473
Yutan Bancorp, Inc
473
Bank holding companies, nonbank activities, article
280
Bank Merger Act
Orders issued under
Albemarle Bank and Trust Company d/b/a
F&M Bank - Charlottesville
797
American Bank of St. Louis
37
Bank of Commerce
709
Central State Bank
184
Chemical Bank
1071
Citizens Trust and Savings Bank
797
CivicBank of Commerce
37
Clanton Interim Bank
888
Crestar Bank
474, 879
DeLand State Bank
474
First Business Bank of Arizona
709
First Illini Bank
184
First of America Bank-Northern Michigan
37, 588, 797
First Virgina Bank-Planters
888
First Virginia Bank-Damascus
392
First Virginia Bank-South Central
392
First Virginia Bank-Piedmont
888
Iron and Glass Bank
392
Kent City State Bank
392
Landmark Bank of Highland
104
Liberty Bank-Oakland
37
Manufacturers and Traders Trust Company
180
Marine Bank of Monticello
709
Metro Bank
263
New Bank
263
North Shore Bank of Commerce
1071
Northern Neck State Bank
709
Ohio Citizens Bank
184
Pacific Western Bank
392
Peoples Bank of Montross
975
Peoples Bank of Mullens
392
Signet Bank/Virginia
797
Star Bank, Kenton County
975
Trust Company Bank
709, 1068
Union Bank/Streator
104
UniSouth Banking Corporation
1071
United Jersey Bank/Commercial Trust
392
United Nebraska Bank
588
Valley Bank of Nevada
797
Villa Grove State Bank
37
Bank of Italy, foreign bank operations in the U.S.,
statement
1034
Bank Secrecy Act, statement on money laundering
309, 517
Bell, T.H., Secretary of Education
1013
Bentley, George G., foreign exchange reports
8, 205
Black, Robert P., President, Federal Reserve of Bank of
Richmond, statement
142
Board of Governors (See also Federal Reserve System)
Consumer Advisory Council
(See Consumer Advisory Council)
Federal Open Market Committee
(See Federal Open Market Committee)
A102
Federal Reserve Bulletin • December 1990
Pages
Board of Governors-Continued
Fees (See Fees for Federal Reserve services
to depository institutions
Inspector General, Office of, hotline telephone number .... 231
Litigation (See Litigation)
Members
Johnson, Manuel H., resignation
524
Kelley, Edward W., reappointment
324
List, 1913-90
591,799
Mullins, David W., Jr., appointment
524
Policy statements (See specific subject)
Publications and releases (See Publications in 1990)
Regulations (See Regulations)
Staff
Changes
Emerson, Marianne M
231
Henderson, Dale W.
525
Kim, Po Kyung
231
Massey, Raymond H
231
Mulrenin, Edward T.
525
Schleicher, C. William, Jr
525
Werneke, Diane E
836
Zemel, Robert J
231
List
A86
Staff studies (See Staff studies)
Statements to the Congress
(See Statements to the Congress)
Thrift Institutions Advisory Council
(See Thrift Institutions Advisory Council)
Bonds
Original-issue-discount
597
Payment-in-kind
597
Boston Federal Home Loan Bank, mortgage lending
discrimination, statement
516
Brady, Nicholas F., mention in statement
on securities regulation
522
Bretton Woods System, in article on exchange rate policy
891
Bureau of Labor Statistics
200
Bureau of Mines
201
CALIFORNIA Community Reinvestment Corporation,
mortgage lending discrimination, statement
516
Canner, Glenn B., article
604
Capital adequacy guidelines, amendment to
Regulations H and Y
847
Census Bureau
192, 606, 811, 837
Check clearing and collection
Amendment to Regulation CC regarding state
and federal law preemption
371
Expedited Funds Availability Act and Regulation CC,
statement
306
Clearing House Interbank Payments System (CHIPS)
211
Commercial bank profitability, article
477
Committee on Reform of the International Monetary
System and Related Issues
897
Commodities Exchange Act
Financial markets globalization, article
511
Securities market regulation
322, 521
Commodity Futures Trading Commission
Financial markets globalization, article
511
Securities market regulation
319, 519
Community Reinvestment Act
Amendment to implement changes
638
Mortgage lending discrimination, statement
512
Community Reinvestment Act Performance Evaluations
638
Comptroller of the Currency, Office of,
securities activities statement
317
Congressional Budget Office
225
Congressional Budget Office, Economic and
Budget Outlook
140
Consumer Advisory Council
Meetings
638, 1036
Pages
Consumer Advisory Council—Continued
Members, new appointments
151
Mortgage lending discrimination, statement
516
Contingency Processing Center, Federal Reserve
Bank of Richmond, budget statement
623
Corporate finance, article on recent developments
593
Corrigan, E. Gerald, President, Federal Reserve
Bank of New York, statement
132
Council of Economic Advisors
141
Counterfeit-detection system, in statement
on System's budget
628
Crabbe, Leland E., article
593
Criminal Referral Form, money laundering, statement
517
Cross, Sam Y., foreign exchange reports
8, 205, 500, 818
D'AMATO, Senator [Alfonse M.], mention
in statement regarding money laundering
518
Data collection system for nonbank activities
282
Depository institutions (See specific types)
Reserve requirements (See Reserve requirements and
Regulations: D)
Deposit insurance system reform, statement
917
Depository Institution Money Laundering Amendments
309
of 1990, H.R. 3848, statement
DiLeo, Paul, foreign exchange report
818
Directors, Federal Reserve Banks and Branches, list
395
Dohner, Robert S., article
39
Douglas Amendment, Bank Holding Company Act,
and nonbank activities
281
Drexel Burnham Lambert
Corporate finance statement
596
Deposit insurance system reform, statement
736
Federal Reserve's role in decision to liquidate, statement... 301
Drug Enforcement Administration, statement
regarding money laundering
311,517
Duca, John V., article
477
Dun's Market Identifier file
816
EARNINGS and expenses (See Income and expenses)
Economic financial developments (See Monetary Policy)
Economy (Monetary policy report to the Congress)
1989
Business
External
Government
Household
Labor markets
Price developments
Statement by Chairman Greenspan
1990
Business
External
Government
Household
Labor markets
Price developments
Statement by Chairman Greenspan
Education of the Handicapped Act
Elliehausen, Gregory E.
Article
Staff study
Emerson, Marianne M., appointed Assistant Director,
Office of Executive Director for Information
Resources Management
Exchange Rate Mechanism, European Monetary System
Expedited Funds Availability Act
Amendment to Regulation CC regarding state
and federal law preemption
Amendment to Regulation CC to implement
Ill
112
112
109
113
114
128
716
718
717
715
719
719
928
1013
801
726
231
819
371
525
Index to Volume 76
Pages
Expedited Funds Availability Act—Continued
Federal Reserve System's budget statement
Payments system, article
Statement
Expenditures, state and local government, article
Expenses (See Income and expenses)
620
293
304
1013
FAIR Credit and Charge Card Disclosure Act of 1988
Amendment to Regulation Z
325, 345
Farming (See Agriculture)
Farnsworth, Clyde H., statements on money laundering . 308, 517
Federal Bureau of Investigation, foreign bank
operations in the U.S., statement
1034
Federal Deposit Insurance Corporation
Commercial bank profitability, article
478
Deposit insurance system reform, statement
731, 917, 1022
Regulatory accounting standards, statement
912
Texas banks, statement
634
Federal Financial Institutions Examination Council
Federal Reserve System's budget statement
621
Mortgage lending discrimination, statement
513
Regulatory accounting standards, statement
912
Federal Open Market Committee
Exchange rate policy, article
894
Policy actions, record
17, 55, 233, 331,
526, 747, 837, 1038
Federal Reserve Act
Deposit insurance reform, statement
737, 926
Orders issued under
Bankers International Corporation
881
Morgan Guaranty International Finance Corporation .... 881
Federal Reserve and Treasury foreign exchange operations
(See Foreign exchange operations)
Federal Reserve Banks
Atlanta, mortgage lending discrimination, statement
516
Boston, mortgage lending discrimination, statement
516
Chicago, mortgage lending discrimination, statement
516
Cleveland, statement on System's budget
625
Dallas, foreign bank operations in U.S., statement
1033
Directors, list
395
Fees (See Fees for Federal Reserve services to depository
institutions)
Federal Reserve Board (See Board of Governors)
Federal Reserve System (See Federal Reserve System and
Board of Governors)
Income from operations, announcement
153
New York
Drexel Burnham Lambert, statement
301
Exchange rate policy, article
892
Fedwire security, assessment
213
Foreign bank operations in the U. S., statement
1035
Securities subsidiaries, statement
314
Richmond, Contingency Processing Center,
budget statement
623
San Francisco
Foreign banking in the U.S., statement
1033
Mortgage lending discrimination, statement
516
Federal Reserve System (See also Board of Governors)
Expenses and budget, statement
619
Membership, admission of state banks
16, 231
System's Pricing Policy Committee, payments
system article
298
Federal Reserve's Planning and Control System
(PACS), payments system article
297
Fedwire
Amendment to Regulation J governing
funds transfers
933,1036
Security
211
Services, uniform operating hours established
448
Third-party funds
1036
Fedwire and Clearinghouse Interbank Payments System
(CHIPS), statement regarding money laundering
311
A103
Pages
Fees for Federal Reserve services to depository institutions
Check clearing and collection
Schedules for services 1991 announced
1036
Schedules for services 1990 announced
15
Priced services
Federal Reserve in the payments system, white paper .... 293
Payments mechanism, the Federal Reserve's role
324
Schedules for services, 1991
1036
Financial Accounting Standards Board, in statement
regarding regulatory accounting standards
912
Financial Institutions Deregulation and Interest Rate Control
Acts, in statement on Federal Reserve System's budget
625
Financial Institutions Reform, Recovery,
and Enforcement Act of 1989
Amendment to Regulation Y
242
Credit availability, statement
630
Deposit insurance system reform, statement
731, 917
Federal Reserve System's budget, statement
621
Monetary policy, report
107, 215
Money laundering, statement
309, 518
Mortgage lending discrimination, statement
513
Order terminating state exemptions
241
Orders issued under
American Bancorporation, Inc
1065
Atico Financial Corporation
688
Aurora First National Company
882
Banc One Corporation
259, 579, 967
Bank Shares Incorporated
1065
BankAmerica Corporation
967
Barnett Banks, Inc
467, 967
Bremer Financial Corporation
790
Brenton Banks, Inc
690, 882
Brunini, Grantham, Grower & Hewes
701
Central Bank
96
Citizens Bancshares, Inc
968
Citizens Corporation
882
Comerica Incorporated
968
Community First Bankshares, Inc
791
Community First North Dakota Bankshares, Inc
968
Coopers & Lybrand
692
County Bancorporation, Inc
580
Crestar Financial Corporation
968
Dickinson, Throckmorton, Parker,
Mannheimer & Raife
693
F.N.B. Corporation
97
Farmers & Merchants Investments, Inc
883
Fessenden Bancshares, Inc
968
First Affiliated Bancorp, Inc
968
First Alabama Bancshares, Inc
883, 968
First Banks, Inc
581
First Bankshares of Las Animas, Inc
581
First Chicago Corporation
968
First Citizens BancShares, Inc
968, 1065
First Empire State Corporation
968
First Forest Corporation
968
First Wachovia Corporation
691
FirsTier Financial, Inc
968
Fourth Financial Corporation
692
Heidelberg & Woodliff
690, 695, 697
Hy-Vee Food Stores, Inc
883
Integra Financial Corporation
582
International Bancshares Corporation
694
Jacob Schmidt Company
1065
Key Bancshares of Wyoming
883
KeyCorp
883, 969
Kirkland&Ellis
696
Lauritzen Corporation
1065
Meridian Bancorp, Inc
98
Midwest Banco Bancorporation
883
National City Corporation
883
NCNB Corporation
98, 388, 389, 469, 696
Norwest Corporation
792
Peoples Heritage Financial Group, Inc
969
A104
Federal Reserve Bulletin • December 1990
Pages
Financial Institutions Reform, Recovery,
and Enforcement Act of 1989—Continued
Orders issued under-Continued
Peoples State Bank
260
Peper, Martin, Jensen, Maichel & Hetlage
701
Piper & Marbury
689
Rebank Netherlands Antilles, N.V
883
Republic Banking Corporation of Florida
883
River Bend Bancshares
583
Rolla Holding Company, Inc
969
SCB Bancorp, Inc
698, 969
Schatz & Schatz, Ribicoff & Kotkin
468
Security Bancorp of Tennessee, Inc
699
Security Pacific Corporation
699, 700,969
Southeast Banking Corporation
99
SouthTrust Corporation
584
SunTrust Banks, Inc
1066
Thompson & Mitchell
583,585,694
Trust Company of Georgia
1066
U.S. Bancorp
792
Union Bancshares, Inc
469
United Nebraska Financial Co
883
USTCorp
969
Valley Bancshares, Inc
969
Vedder, Price, Kaufman & Kammholz
688
Watford City Bancshares, Inc
969
West Point Bancorp, Inc
883
Real estate appraisal standards provisions
638
Regulatory accounting standards, statement
911
Securities subsidiaries, statement
319
Financial markets globalization, statements
439, 507
Financial services use by small and medium-sized
businesses, article
801
Financial services, article
726, 808
Financing (See Loans)
Fiscal position, state and local governments, article
1009
Foreign exchange operations of the Treasury
and Federal Reserve, reports
8, 205, 500, 818
Foreign investment in United States, statement
124
Foreign stocks, list of marginable
744
Full Employment and Balanced Growth Act of 1978
(See also Monetary policy: report to the Congress) .... 107, 711
GENERAL Accounting Office
"Bank Powers: Activities of Securities Subsidiaries
of Bank Holding Companies," statement
312
Glass-Steagall Act, report on repeal of
316
Recommendations on the payments mechanism
324
Security of large-dollar value electronic funds
transfer systems, statement
211
General fund budgets, state and local governments, article ... 1010
General Services Administration, amendment to Regulations
Regarding Foreign Gifts and Decorations
373
Glass-Steagall Act of 1933
Deposit insurance system reform, statement
736,926
GAO report on repeal, securities subsidiaries, statement ... 316
Nonbank activities
280
Securities subsidiaries, statement
313
Globex systems, Chicago Mercantile Exchange,
globalization of financial markets, article
509
Government Services Administration
157
Gramm-Rudman-Hollings legislation, in statement
on System's budget
619
Greenspan, Alan
Credit availability, statement
629
Deposit insurance system reform, statement
731,917
Drexel Burnham Lambert decision, the Federal
Reserve's role, statement
301
Economy in 1990, statement
928
Foreign investment in U.S., statement
124
Global environment in which U.S. financial firms
will operate, statement
439
Pages
Greenspan, Alan—Continued
Globalization of financial markets, statement
507
Monetary policy report to the Congress,
statements
215, 226, 738
Regulation of securities markets, statement
519
Retirement security in present and future generations,
statement
222
Securities markets, regulation, statement
319
Statement regarding nomination of David Mullins,
announcement
53
H.R. 4044, statement regarding money laundering
310
H.R. 4064, statement regarding money laundering
310
Henderson, Dale W., appointed Assistant Director,
Division of International Finance
525
Home Equity Loan Consumer Protection Act,
amendment to Regulation Z
325, 345
Home equity lines of credit, amendment to
Regulation Z
931,956
Home Mortgage Disclosure Act
Mortgage lending discrimination, statement
513
Order terminating state exemptions
241
Hoskins, W. Lee, President, Federal Reserve
Bank of Cleveland, statement
135
House Joint Resolution 409
132, 135, 142, 146
Humphrey-Hawkins Act (See Monetary policy: Reports
to the Congress)
IBM Corporation
192
Income and Expenses, Federal Reserve Banks,
announcement
153
Industrial production and capacity utilization
Developments, industrial capacity, article
411
Historical revision and developments, article
187
Releases
13,51, 122,209,
299, 436, 505,613,728, 824, 909, 1019
Statistical release, changes
448
Inspector General, Office of, hotline telephone number
231
Internal Revenue Service, money laundering, statement
517
International Banking Act of 1978
Federal Reserve budget, statement
625
Federal Reserve supervision of foreign banks
operating in U.S., statement
1032
International banking operations, amendment to extend
the scope of U. S. banking organizations
931
International Capital Standards (Basle Accord), in statement
on reform of die deposit insurance system
733, 1027
International Monetary Fund
Articles of Agreement, in article on exchange rate policy .. 891
Foreign exchange article
822
International transactions in 1989, article
267
JAPANESE banks, activities in the United Kingdom
and in the United States, article
39
Johnson, Manuel H.
"Bank Powers: Activities of Securities Subsidiaries
of Bank Holding Companies," statement
312
Merchants National case, statement
444
Resignation as Vice Chairman of the Board of Governors .. 524
KELLEY, Edward W., Jr.
Federal Reserve System's expenses and budget,
statement
Reappointment as member of the Board of Governors
Kim, Po Kyung, appointed Assistant Director, Division of
Applications Development and Statistical Services
Kohn, Donald L., article
619
324
231
1
Index to Volume 76
Pages
LARGE-DOLLAR value electronic funds transfer systems,
security of, statement
211
LaWare, John P.
Credit availability to small businesses, statement
615
Mortgage lending discrimination, statement
512
Real estate lending by commercial banks, statement
827
Legislation (See subject or specific name of act)
Lending Practices Survey, bank profitability, article
479, 481
Leverage ratios
744, 915
Liang, Nellie J.
Article
280
Staff study
120
Litigation
Issuance of final orders
Bank Dagang Negara, Jakarta, Indonesia
265
Bank of New England Corporation
394
Bank South Corporation
889
Bruce F Dailey, First Security Bank of Missoula
15, 185
EVCO, Inc
185
First Bank and Trust Company
1072
Flower Mound Bank
265
Household International, Inc
889
National Bank of Greece
15
National Bank of Greece, Athens, Greece
186
National Mortgage Bank of Greece
15
National Mortgage Bank of New York
15
Northwest Indiana Bancshares, Inc
976
Prineville Bank
889
Stasio, Andrew F., Jr., Former Director of
Commonwealth Bank
977
Stockgrowers State Bank Company, Inc
185
List of pending cases
38, 105, 184, 264,
393, 475, 589,709,797, 888,976, 1071
Petitions for Enforcement
Citicorp
977
Family Guardian Life Insurance Company
977
Loans
Bank profitability, article
Agricultural
481
Commercial and industrial
479
Consumer
480
Foreign addressees
481
Real estate
480
Credit availability, statements
615, 629
Real estate, statement on loan discrimination
512
Lowrey, BarbaraR., article
39
Luckett, Charles A., article
604
MAGNETIC Ink Character Recognition (MICR), payments
system article
294
Margin requirements, over-the-counter stocks (See
Over-the-counter margin stocks, list)
Massey, Raymond H., appointed Assistant Director,
Division of Applications Development
and Statistical Services
231
Mauskopf, Eileen, article
985
McFadden Act
Deposit insurance reform, statement
737, 927
McLaughlin, Mary M., article
477
Meech Lake Accord
819
Merchants National Corporation, statement
regarding the case
444
Monetary Control Act of 1980
Federal Reserve System's budget statement
619
Payments system article
293
Monetary policy
Reports to the Congress
107, 711
Statements
215,226,738
Transmission channels of, changes, article
985
Money laundering, statement on proposed legislation .... 308, 517
Money stock, data revision
325
Moody's Investors Service, in statement on corporate finance . 598
A105
Pages
Mortgage refinancing, article
604
Moynihan [Daniel Patrick], Senator
222, 224, 225, 228
Mullins, David W., Jr.
Appointed Member of the Board of Governors
524
Statement by Chairman Greenspan regarding
nomination
53
Mulrenin, Edward T., transfer to the Office of the Executive
Director for Information Resources Management
525
NATIONAL Association of Affordable Housing Lenders,
mortgage lending discrimination, statement
516
National Association of Securities Dealers,
in statement on corporate
finance
603
National Commission on Social Security Reform
222
National Fair Housing Alliance, mortgage lending
discrimination, statement
516
National Federation of Independent Businesses,
in statement on credit availibility
616
National Income and Product Accounts
225,229
National Information Center, in statement
on Federal Reserve System's budget
621
National League of Cities
1017
National Survey of Small Business Finances
Financial services, article
802
Financial services, staff study
726
New York Stock Exchange, Drexel Burnham
Lambert, statement
302
OFFICE of the Comptroller of the Currency
Deposit insurance system reform, statement
Regulatory accounting standards, statement
Office of the Inspector General, Federal Reserve
System's budget, statement
Office of Thrift Supervision
Deposit insurance system reform, statement
Regulatory accounting standards, statement
Old Age, Survivors, and Disability Insurance
Over-the-counter stocks, list of marginable
Revision, announcements
1022
912
622
1022
912
224
153, 744
PARRY, Robert T., President, Federal Reserve Bank
of San Francisco, statement
146
Pauls, DianneB., article
891
Payments mechanism and systems (See Fees for Federal
Reserve services to depository institutions)
Philadelphia Mortgage Plan, mortgage lending
discrimination, statement
514
Pickering, Margaret H., article
593
Policy targets and operating procedures in the 1990s, article ..
1
Pricing of Federal Reserve services (See Fees for Federal
Reserve services to depository institutions)
Private sector adjustment factor, payments system article
297
Production, industrial (See Industrial production
and capacity utilization
Proposed actions
Bank holding company reporting requirements,
May 3,1990
525
Change in Bank Control Act filing requirements,
July 2, 1990
638
Federal Reserve Banks to notify off-line institutions
of receipt of incoming Fedwire funds transfers,
April 30,1990
448
Interdistrict Transportation Service, change to the
pricing structure, October 5,1990
1037
Interim procedures for notification of changes in Senior
Executive Officers and Directors at bank holding
companies, Feb. 14,1990
231
Investment advisory activities of Bank Holding
Companies, June 19, 1990
638
A106
Federal Reserve Bulletin • December 1990
Pages
Proposed actions—Continued
List of permissible activities in Regulation Y,
May25, 1990
525
Modification to underwriting and dealing in securities,
July 3, 1990
745
Regulation K, to permit U.S. banking organizations
to expand international activities, August 1, 1990
745
Regulation P, revision, April 4, 1990
448
Regulation Y, to permit bank holding companies to
provide financial advisory services to institutions,
August 30, 1990
836
Regulation Y, to reduce filing requirements,
July 2, 1990
745
Regulation Z, to freeze credit line when rate cap
is reached, March 19, 1990
325
Risk-based capital guidelines, clarification,
October 12,1990
1037
State member bank, standards set for appraisals
conducted in federally related transactions,
Feb. 6, 1990
231
State member banks and bank holding companies,
capital standards, Nov. 22, 1989
16
Tie-in prohibitions, exemption, June 22, 1990
638
Transition capital standards for state member banks,
December 29, 1989
54
Prowse, Stephen D., article
593
Publications in 1990
1983 Survey of Consumer Finances: Design and Methods .. 1037
76th Annual Report, 1989
449
A Guide to Business Credit for Women, Miniorities
and Small Businesses, revised brochure
931
Annual Report: Budget Review, 1989-90
449, 619
Financial Sectors in Open Economies: Empirical
Analysis and Policy Issues
745
Home Mortgages: Understanding the Process
and Your Rights, a brochure
931
RADDOCK, Richard D., article
411
Rambouillet Economic Summit
899
Real estate
Lending by commercial banks, statement
827
Mortgage lending discrimination, statement
512
Mortgage refinancing, article
604
Regional Delivery System, in statement
on System's budget
626
Regulations (Board of Governors, See also Rules)
Amendments
B, Equal Credit Opportunity
Creditors to give business applicants written
notice regarding written statement of reasons
for credit denial
61
Implementation of amendments on business
credit and data collection
341
Transfer of enforcement functions from Federal Home
Loan Bank Board to Office of Thrift Supervision ... 63
Women's Business Ownership Act of 1988,
requirements
53
C, Home Mortgage Disclosure
Financial Institutions Reform, Recovery
and Enforcement Act (FIRREA), requirements
53
Financial Institutions Reform, Recovery
and Enforcement Act, revision to implement
amendments
64
Order terminating state exemptions
241
CC, Availability of Funds and Collection of Checks
California state laws preempted by federal law
371
Expedited Funds and Availabilility Act
implementation
525, 535
Statement
306
D, Reserve Requirements of Depository Institutions
Transactions accounts decrease
67
Pages
Regulations (Board of Governors)—Continued
Amendments
E, Electronic Fund Transfers
Interpretation of requirements of the regulation
342
Transfer of enforcement functions from Federal Home
Loan Bank Board to Office of Thrift Supervision ... 63
G, Securities Credit by Persons Other than Banks,
Brokers, or Dealers
Foreign Margin Stocks, list
1045
Marginable OTC stocks, list
155, 451, 1045
H, Membership of State Banking Institutions
Real estate appraisal standards, to implement
provisions of FIRREA
638,639
Transition capital standards and capital
leverage guidelines
847
J, Collection of Checks and Wire Transfers of Funds
Funds transfers through Fedwire, made
consistent with Uniform Commercial Code ... 933, 1036
K, International Banking Operations
U.S. banking organizations to extend the scope
of their international activities
931
M, Consumer Leasing
Transfer of enforcement functions from Federal Home
Loan Bank Board to Office of Thrift Supervision ... 63
T, Credit by Brokers and Dealers
Foreign Margin Stocks, list
1045
Foreign securities, settlement and
clearance of transactions
324, 343
Interpretation of application to unregistered
securities
745, 753
Marginable OTC stocks, list
155, 451, 1045
U, Credit by Banks for the Purpose
of Purchasing or Carrying Margin Stocks
Foreign Margin Stocks, list
1045
Marginable OTC stocks, list
155, 451, 1045
X, Borrowers of Securities Credit
Foreign Margin Stocks, list
1045 451
Marginable OTC stocks, list
155, 1045
Y, Bank Holding Companies and Change in Bank Control
Notification of change in Board of Directors
or Senior Executive Officers
242
Real estate appraisal standards, implement
provisions of FIRREA
638, 639
Transition capital standards and capital
leverage guidelines
847
Z, Truth in Lending
Home equity lines of credit
931, 956
Interpretation of requirements of the regulation
345
Transfer of enforcement functions from Federal Home
Loan Bank Board to Office of Thrift Supervision ... 63
Staff commentaries, proposed revisions
Regulation B
December 4, 1989
54
March 29,1990
325
Regulation C
December 12, 1989
54
Regulation CC
December 8,1989
54
Regulation E
March 29, 1990
325
November 16, 1989
15
Regulation Z
March 30,1990
325
November 16, 1989
15
Regulations Regarding Foreign Gifts and Decorations,
amendment regarding acceptance of gifts
373
Regulatory accounting standards, statement
911
Rehabilitation Act
1013
Research Triangle Institute, in article on financial services ... 817
Reservable Transaction Accounts, decrease
53
Reserve requirement, decrease
53
Resolution Trust Corporation
Monetary policy report
217
Index to Volume 76
Pages
Resolution Trust Corporation—Continued
Monetary policy report—Continued
Statement
739
Texas banks' condition statement
633, 636
Retirement security, statement
222
Risk-based capital framework
Deposit insurance system reform, statement
1027
Regulatory accounting standards, statement
915
Rubin, Laura S., article
1009
Rules Regarding Delegation of Authority
Foreign margin stocks list, approval delegated to Staff
Director of Division of Banking
Supervision and Regulation
754
Technical amendment to conform reference
to Rules Regarding Availability of Information
1050
Rules Regarding Foreign Gifts and Decorations, amendment
changing the minimum value of gifts
157
SAVAGE, Donald T.
Article
280
Staff study
120
Schleicher, C. William, Associate Director, Division of
Federal Reserve Bank Operations, resignation
525
Securities
Bank profitability, article
481
Foreign, settlement and clearance, amendment
to Regulation T
324
Markets, statements on regulation
319, 519
Subsidiaries, statement
312
Securities and Exchange Act of 1934
Securities market regulation
321, 521
Securities subsidiaries, statement
315
Securities and Exchange Commission
Corporate finance statement
593, 601
Drexel Burnham Lambert, statement
302
Regulatory accounting standards, statement
911
Securities market regulation
319, 519
Securities subsidiaries, statement
315
Small Business Administration
Article on use of financial services by businesses
802
Staff study on use of financial services by businesses
726
Social insurance funds, state and local governments,
article
1012
Social Security Administration
228
Social Security Board of Trustees
225
Social security and federal budget deficit, statement by Alan
Greenspan
228
Society for Worldwide Interbank Financial
Telecommunication (S.W.I.F.T.)
211
Sprinkel, Beryl, Undersecretary of the Treasury
904
Staff studies
Banking markets and the use of financial services
by small and medium-sized businesses
726
New data on the performance of nonbank subsidiaries
of Bank Holding Companies
120
Standard and Poor's, in statement on corporate
finance
598
Standard Industrial Classification codes, nonbank
activities, article
282
Statements to the Congress (including reports and letters)
"Bank Powers: Activities of Securities Subsidiaries of
Bank Holding Companies," (Vice Chairman Johnson) ... 312
Credit availability (Chairman Greenspan)
629
Credit availability to small business (Governor LaWare) ... 615
Deposit insurance system reform
(Chairman Greenspan)
731,917,1022
Economy in 1990 (Chairman Greenspan)
928
Economy, the state of (Chairman Greenspan)
128
Expedited Funds Availability Act (Governor Angell)
304
Federal Reserve supervision of foreign banks
operating in the U.S. (William Taylor, Staff Director,
Division of Banking Supervision and Regulation)
1032
A107
Pages
Statements to Congress (including reports and letters)Continued
Federal Reserve System's expenses and budget
(Governors Angell and Kelley)
619
Federal Reserve's role in developments surrounding
Drexel Burnham Lambert (Chairman Greenspan)
301
Foreign investment in the United States
(Chairman Greenspan)
124
Global environment in which U.S. financial
firms will operate (Chairman Greenspan)
439
Globalization of financial markets (Chairman Greenspan) .. 507
House Joint Resolution 409
E. Gerald Corrigan, President, Federal Reserve
Bank of New York
132
Robert P. Black, President, Federal Reserve
Bank of Richmond
142
Robert T. Parry, President, Federal Reserve
Bank of San Francisco
146
W. Lee Hoskins, President, Federal Reserve
Bank of Cleveland
135
Large-dollar value electronic funds transfer systems,
security of (Governor Angell)
211
Merchants National Corporation case
(Vice Chairman Johnson)
444
Monetary policy report to the Congress
(Chairman Greenspan)
215, 226, 738
Money laundering, proposed legislation
(Clyde H. Farnsworth, Jr., Director, Division of
Federal Reserve Bank Operations)
308, 517
Mortgage lending discrimination (Governor LaWare)
512
Real estate lending by commercial banks
(Governor LaWare)
827
Regulatory accounting standards (Governor Angell)
911
Retirement security in present and future
generations (Chairman Greenspan)
222
Securities market regulation (Chairman Greenspan) ... 319, 519
Texas banks' condition (William Taylor, Staff Director,
Division of Banking Supervision and Regulation)
632
U.S. agencies and branches of Japanese banks,
activities (Henry Terrell, Senior Economist,
Division of International Finance)
831
Stevens, Guy V.G., article
267
Stock market credit, over-the-counter stocks
(See Over-the-counter stocks, list of marginable;
and Regulations: G, T, U, and X)
Structural Impediments Initiative
820
Supervision, Federal Reserve of foreign banks
operating in U.S
1032
System's Pricing Policy Committee, payments
system article
298
TABLES (For index to tables published monthly,
see guide at top of page A94; for special tables published
during the year, see list on page A71.)
Change in database
Tax Reform Act of 1986
Commercial bank profitability, effects
Corporate finance statement
Mortgage refinancing statement
Taylor, William
Role of Federal Reserve in supervision of foreign banks
operating in U.S
Texas banks, condition statement
Terrell, Henry S.
Article
Statement
Testimony (See Statements to the Congress)
Texas banks, condition statement
Thrift Institutions Advisory Council, members,
new appointments
TransData Corporation, survey conducted
for American Banker regarding funds availability
16
480
595
609
1032
632
39
831
632
152
305
A108
Federal Reserve Bulletin • December 1990
Pages
Transfers of funds
Fees (See Fees for federal reserve services to depository
institutions)
Regulation E (See Regulation E)
Tranum, Dixon A., article
Treasury and Federal Reserve foreign exchange
operations (See Foreign exchange operations)
Truth in Lending, Regulation Z (See Regulations: Z)
187
U.S. agencies and branches of Japanese banks, activities,
statement
831
U.S. Customs Service, statement regarding money
laundering
311, 517
U.S. Department of Agriculture
Food and Nutrition Service, in statement
on System budget
625
U.S. Department of Commerce
Bureau of Economic Analysis
192, 200
U.S. Department of Energy
201
U.S. Department of Housing and Urban Development
Mortgage lending discrimination, statement
513
U.S. Department of Justice
Criminal division, statement regarding
money laundering
311,517
Mortgage lending discrimination, statement
516
U.S. Department of the Treasury
Bank profitability, article
481
Drexel Burnham Lambert, statement
302
Exchange rate policy, article
892
Federal Reserve System's budget, statement
619
Pages
U.S. Department of the Treasury-Continued
Financial Crimes Enforcement Network,
statement on money laundering
311
Foreign exchange, article
822
Money laundering, statement
517
Office of Financial Enforcement,
statement regarding money laundering
311
Wire transfer requirements to prevent money laundering ... 310
University of Michigan, Survey Research Center,
in statement on mortgage refinancing
611
VETERANS Administration, in statement on mortgage
refinancing
Voluntary Foreign Credit Restraint Program,
in article on foreign exchange rates
WERNEKE, Diane E., appointed Special Assistant
to the Board for Congressional Liaison
Wire transfer, recordkeeping requirements legislation
to prevent money laundering
Wolken, John D.
Article
Staff study
Women's Business Ownership Act of 1988
Staff commentary, revision to Regulation B
ZEMEL, Robert J., promoted to Associate Director,
Division of Applications Development
and Statistical Services
607
895
836
310
801
726
325
231
A109
Federal Reserve Banks, Branches,
and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
Richard N. Cooper
Richard L. Taylor
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
Vice President
in charge of branch
James O. Aston
PHILADELPHIA
19105
Peter A. Benoliel
Gunnar E. Sarsten
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101
Charles W. Parry
John R. Miller
Kate Ireland
Robert P. Bozzone
W. Lee Hoskins
William H. Hendricks
Hanne M. Merriman
Anne Marie Whittemore
John R. Hardesty, Jr.
William E. Masters
Robert P. Black
Jimmie R. Monhollon
Larry L. Prince
Edwin A. Huston
A. G. Trammell
Lana Jane Lewis-Brent
Robert D. Apelgren
Victoria B. Jackson
Andre M. Rubenstein
Robert P. Forrestal
Jack Guynn
Marcus Alexis
Charles S. McNeer
Phyllis E. Peters
Silas Keehn
Daniel M. Doyle
H. Edwin Trusheim
Robert H. Quenon
L. Dickson Flake
Raymond M. Burse
Katherine H. Smythe
Thomas C. Melzer
James R. Bowen
Michael W. Wright
Delbert W. Johnson
J. Frank Gardner
Gary H. Stern
Thomas E. Gainor
Fred W. Lyons, Jr.
Burton A. Dole, Jr.
Barbara B. Grogan
John F. Snodgrass
Herman Cain
Roger Guffey
Henry R. Czerwinski
Bobby R. Inman
Hugh G. Robinson
Donald G. Stevens
Andrew L. Jefferson, Jr.
Roger R. Hemminghaus
Robert H. Boykin
William H. Wallace
Robert F. Erburu
Carolyn S. Chambers
Yvonne B. Burke
William A. Hilliard
Don M. Wheeler
Bruce R. Kennedy
Robert T. Parry
Carl E. Powell
Cincinnati
Pittsburgh
45201
15230
RICHMOND*
23219
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30303
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75222
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Charles A. Cerino1
Harold J. Swart1
Robert D. McTeer, Jr.1
Albert D. Tinkelenberg1
John G. Stoides 1
Donald E. Nelson
Fred R. Herr1
James D. Hawkins 1
James T. Curry III
Melvyn K. Purcell
Robert J. Musso
Roby L. Sloan1
Karl W. Ashman
Howard Wells
Ray Laurence
John D. Johnson
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, New Jersey 07016;
Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
1. Senior Vice President.
2. Executive Vice President.
Alll
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
LEGEND
~ Boundaries of Federal Reserve Districts
Q
Board of Governors of the Federal Reserve
System
Federal Reserve Bank Cities
•
Federal Reserve Branch Cities
•
Boundaries of Federal Reserve Branch
Territories
®
Federal Reserve Bank Facility
Federal Reserve Statistical Releases
Available on the Commerce Department's
Electronic Bulletin Board
The Board of Governors of the Federal Reserve
System makes some of its statistical releases available to the public through the U.S. Department of
Commerce's electronic bulletin board. Computer
access to the releases can be obtained by sub-
scription. For further information regarding a
subscription to the electronic bulletin board,
please call (703) 487-4630. The releases transmitted to the electronic bulletin board, on a regular
basis, are the following:
Reference
Number
Statistical release
Frequency of release
H.3
Aggregate Reserves
Weekly/Thursday
H.4.1
Factors Affecting Reserve Balances
Weekly/Thursday
H.6
Money Stock
Weekly/Thursday
H. 8
Assets and Liabilities of Insured Domestically Chartered
and Foreign Related Banking Institutions
Weekly/Monday
H. 10
Foreign Exchange Rates
Weekly/Monday
H.15
Selected Interest Rates
Weekly/Monday
G.5
Foreign Exchange Rates
Monthly/end of month
G.17
Industrial Production and Capacity Utilization
Monthly/midmonth
G.19
Consumer Installment Credit
Monthly/fifth business day
Z.7
Flow of Funds
Quarterly
@FedFRASER