Full text of Federal Reserve Bulletin : February 1981
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FEBRUARY
1981
FEDERAL RESERVE
BULLETIN
Federal Reserve and the Payments System
Cyclical and Secular Developments in the U.S. Steel Industry
Domestic Financial Developments in the Fourth Quarter of 1980
FEDERAL RESERVE BULLETIN (USPS 351-150). Controlled Circulation Postage Paid at Richmond. Virginia. POSTMASTER: Send address changes to Publications Services, MP-510, Board of Governors of the Federal Reserve System,
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F e d e r a l R e s e r v e S y s t e m in a f o r m c o l l e c t i b l e a t p a r in U . S . c u r r e n c y . ( S t a m p s a n d c o u p o n s a r e not a c c e p t e d . )
VOLUME 67 •
NUMBER 2 •
FEBRUARY 1981
FEDERAL RESERVE
BULLETIN
Board of Governors of the Federal Reserve System
Washington, D.C.
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • Stephen H. Axilrod • John M. Denkler
Janet O. Hart • James L. Kichline • Neal L. Petersen • Edwin M. Truman
Naomi P. Salus, Coordinator
The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. The artwork is provided by the Graphic Communications Section under the
direction of Peter G. Thomas. Editorial support is furnished by the Economic Editing Unit headed by Mendelle T. Berenson.
Table of Contents
on Industrial Growth and Productivity of
the Senate Committee on the Budget, January 27, 1981.
109 FEDERAL RESERVE AND THE
PAYMENTS SYSTEM
The Federal Reserve is modernizing its
communications network because of the
need to broaden its services as the volume
of electronic payments increases during the
next decade.
117 CYCLICAL AND SECULAR
DEVELOPMENTS
IN THE U.S. STEEL INDUSTRY
Production by the U.S. steel industry plummeted in the first half of 1980, but made a
vigorous recovery in the five months that
followed the July trough.
127 DOMESTIC FINANCIAL
DEVELOPMENTS
IN THE FOURTH QUARTER OF 1980
Demands for credit grew substantially in
the quarter and market interest rates
reached new highs.
134 INDUSTRIAL
PRODUCTION
Output rose about 0.6 percent in January.
141 Chairman Volcker reviews the current economic situation and emphasizes that reducing inflation will require changes in behavior patterns, which have become deeply
ingrained, and that the effort necessary to
achieve such changes must be carried out
over a broad range of integrated policies,
before the Joint Economic Committee,
February 5, 1981.
143 Nancy H. Teeters, Member, Board of Governors, presents the views of the Board on
the proposed Cash Discount Act, by which
a seller could provide a discount to a customer for payment by cash, check, or
means other than an open-end credit card
and would not have to disclose the discount
as a finance charge under the Truth in
Lending Act; Mrs. Teeters says that the
Board favors encouraging such discounts,
before the Subcommittee on Consumer Affairs of the House Committee on Banking,
Finance and Urban Affairs, February 5,
1981.
135 STATEMENTS TO CONGRESS
Paul A. Volcker, Chairman, Board of Governors, outlines some of the key issues for
economic policy for 1981 and beyond and
says that the preeminent objective of economic policy should be to break the inflationary momentum that grips the economy,
before the Senate Committee on Appropriations, January 27, 1981.
137 Henry C. Wallich, Member, Board of Governors, discusses his personal views on the
prospects for increased growth in productivity in the United States and on the role
that the federal government should take in
the effort to improve productivity performance, before the Temporary Subcommittee
145
ANNOUNCEMENTS
Proposed revision and simplification of
Regulation C, which implements the Home
Mortgage Disclosure Act.
Adoption of forms to be filed by foreign
organizations that conduct banking business in the United States to meet the requirements of the Bank Holding Company
Act and the International Banking Act of
1978.
Interpretation of Regulation K dealing with
investments by a U.S. banking organization
in a foreign company that does business in
the United States.
Availability of Federal Reserve Regulatory
Service that will ultimately include all
Board regulations and related interpretations and documents.
fluctuations in the federal funds rate, taken
over a period of time, within a range of 15
to 20 percent were likely to be inconsistent
with the monetary and related reserve
paths, the Manager for Domestic Operations was promptly to notify the Chairman, who would then decide whether the
situation called for supplementary instructions from the Committee.
Adoption of procedures for cooperation
with the Department of Labor in enforcement of the Employee Retirement Income
Security Act of 1974.
Settlement of enforcement proceedings instituted by the Board against Mid America
Bancorporation, Inc., and Irwin L. Jacobs
of Minneapolis.
155 LEGAL DEVELOPMENTS
Amendments to Regulations E, F, and Q;
various rules; various bank holding company and bank merger orders; and pending
cases.
Changes in Board staff.
Admission of twelve state banks to membership in the Federal Reserve System.
149 RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET COMMITTEE
At the conclusion of its meeting on December 18-19, 1980, the Committee decided to
seek behavior of reserve aggregates associated with growth of M-1A, M-1B, and M-2
over the first quarter along a path consistent with the ranges for growth in 1981
contemplated in July 1980, abstracting from
the effects of deposit shifts connected with
the introduction of NOW accounts on a
nationwide basis. The members recognized
that the spread of NOW accounts and ATS
accounts nationally was likely to widen the
differential between growth of M-l A and of
M-1B to an unpredictable extent and that
operational paths for reserves would have
to be adjusted in the light of the developing
differential. Some shortfall in growth would
be acceptable in the near term if that developed in the context of reduced pressures in
the money market. If it appeared during the
period before the next regular meeting that
Ai
FINANCIAL AND BUSINESS STATISTICS
A3
A44
A52
A68
Domestic Financial Statistics
Domestic Nonfinancial Statistics
International Statistics
Special Tables
A67 GUIDE TO TABULAR PRESENTATION,
STATISTICAL RELEASES, AND SPECIAL
TABLES
A74 BOARD OF GOVERNORS AND STAFF
A76 FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISORY COUNCILS
AH FEDERAL RESERVE BANKS, BRANCHES,
AND OFFICES
A78 FEDERAL RESERVE BOARD
PUBLICATIONS
A80 INDEX TO STATISTICAL TABLES
A82 MAP OF FEDERAL RESERVE SYSTEM
Federal Reserve and the Payments System
Upgrading Electronic Capabilities for the 1980s
George W. Mitchell, former Vice Chairman,
Board of Governors, and Raymond F. Hodgdon,
Office of Staff Director for Federal Reserve Bank
Activities, prepared this article.
The Federal Reserve System has embarked on a
major new program to modernize its communications network. The upgrading is needed because
the current system and its technology are 10
years old and are inadequate for the electronic
communications requirements of the 1980s. The
project, known as FRCS-80 (Federal Reserve
Communications System for the Eighties), is one
of the largest, most complex undertakings of its
kind that the Federal Reserve System as a whole
has ever attempted; the design may well serve as
an example for others interested in computerbased communications.
Planning for FRCS-80 began in late 1975 on the
assumption that access to Federal Reserve services would broaden during the 1980s and that the
volume of electronic payments would increase;
the new system was designed, therefore, to accommodate all types of depository institutions.
This assumption has been validated by the recent
Monetary Control Act (MCA) of 1980 (Public
Law 96-221), the growing use of electronic technology in the delivery of banking services, and
market forces generally.
The new system will be a general-purpose data
communications network that will satisfy the
Federal Reserve's internal communications requirement for providing services to the financial
community, the Treasury, and other government
agencies. It will be a communications system
capable of handling the anticipated volume of
electronic payments during the next decade.
FRCS-80 will provide a standard method for
transmitting electronic payments to all Federal
Reserve locations and a standard nationwide
approach for authorized financial institutions to
access and use the network for electronic transfers both of funds and securities and of payments
through automated clearinghouses (ACHs).
Thus, the functions of the existing separate
communications networks will be consolidated
into a single network providing better service at
less cost. 1 Historically, as the need for new data
communications applications emerged, the most
frequent solution was the implementation of independent data communications systems tailored to a single application; the result was the
current melange of communications networks.
With FRCS-80, new communications requirements will be satisfied without the development
of another network or the need for major design
changes.
The expected benefits of the network are as
follows:
1. Improve the reliability, efficiency, and
availability of communications services to financial institutions.
2. Accommodate significant volume increases
in the 1980s.
3. Reduce the total cost of System communications.
4. Provide a standard that will be recognized
by the industry for connecting financial institutions to FRCS-80.
5. Offer increased security of data moving
within the Federal Reserve System.
6. Facilitate check truncation or the conversion of checks into electronic debits by forwarding essential payment information needed for
collection.
1. The current networks link more than 500 direct-access
endpoints and include (1) a central "switch" in Culpeper,
Virginia; (2) a leased communications service; and (3) 12
separate Federal Reserve intra-District systems. The FRCS80 is intended to replace a number of these high-overhead
facilities with one standardized system flexible enough to
accomodate present and future needs.
110
Federal Reserve Bulletin • February 1981
7. Offer financial institutions greater overall
flexibility through terminal resource sharing.
8. Minimize disruption from converting to the
new network by using transition aids, which will
allow current software to be compatible with the
new network.
The new system employs proven state-of-theart communications software and hardware configured to permit the Federal Reserve to take full
advantage of dedicated and dial-up data transmission services. The conceptual design of
FRCS-80 is that of a distributed "packetswitched" network "augmented" by circuitswitching facilities.
No single central switching site, such as the
current switch in Culpeper, Virginia, will be
required to coordinate the operation of the network. Rather than revolve around a computerized hub, as does the current Fed Wire, FRCS80's computer power will be distributed initially
1. FRCS-80 district office spine network
among the 12 Federal Reserve Bank headquarters cities, the Treasury Department in Washington, and the Federal Reserve's operations center
in Culpeper. Distributing communications in this
manner is expected to improve the reliability of a
system now being pressed to its limits with a
volume of 175,000 funds transfers and other
bank-to-bank messages on an average day.
Packet-switching describes the way in which
messages are broken down into small sets of
data, or packets, and then are combined with
other message fragments in transit in order to
maximize the efficiency of transmissions through
the communications lines. The messages are
reassembled into their original form at the receiving point. Augmented refers to the capability to
acquire additional transmission capacity on demand. Augmentation is required to accommodate in a cost effective way the fluctuations that
will occur in transmitting electronic payments.
Federal Reserve and the Payments System
FRCS-80 will consist of 14 interconnected
communications processors (nodes). In moving
from one Federal Reserve Bank city to another,
any FRCS-80 message will travel no more than
two of the network nodes. Each of the computerized nodes reads the message's address and
switches it in the proper direction. If any computer is not functioning, the message can be
rerouted through other Federal Reserve cities
without placing a major burden on the system's
speed or message capacity. 2
A possible deployment of nodes and circuits to
support the projected 1980 traffic requirements is
shown in chart 1. As traffic demands warrant,
additional nodes can be located at Federal Reserve branch and regional check processing center offices.
In order to understand the role that FRCS-80
will play in the transfer of funds, the various
payments activities of the Federal Reserve are
examined for the likely impact of enhanced electronic capability on performance and efficiency.
FEDERAL RESERVE ROLE IN PA YMENTS
Among the several functions delegated to the
Federal Reserve by the Congress are two that
influence the nation's payments system—the
clearing and settlement of transfers of funds
among deposit accounts at financial institutions
and the circulation of currency and coin. In 1979
the cost of performing these two functions accounted for well over half of the System's total
expenditures of almost $800 million.
Federal Reserve payment services are decentralized among the Federal Reserve Banks,
branches, and offices. In all, 48 offices serve
2. The network can expand to meet volume increases, as
well as to have multiple connections with terminals and/or
other communications systems, and can tap additional circuit
capacity on demand during peak volume hours. Most important, FRCS-80 will reduce restrictions on how and where data
will be processed in the Federal Reserve System, as each
node is in direct contact with three others in the network.
This feature would allow the Federal Reserve Bank of
Chicago, for example, to receive and process communications for the Federal Reserve Bank of Cleveland if its
computer were inoperative. The need to invoke this kind of
backup will be determined by a network management center
(NMC) to be located in the Culpeper facility. (The NMC also
will be responsible for software testing and billing for the
System's use.)
111
directly or indirectly the currency, coin, and
deposit transfer needs of 15,000 commercial
banks and 28,000 thrift institutions.
In the Federal Reserve, as in many private and
public enterprises, the technological changes in
data handling, storage, and telecommunications
that took place in the 1960s and 1970s have
already had a significant effect on operations.
For example, as check-sorting machines and
electronic accounting displaced manually operated proof machines, productivity in check processing almost doubled—from a little over 800
items per hour in the late 1960s to nearly 1,600 in
1979. More significant productivity changes are
likely to take place when income payments, bill
remittances, intercorporate transfers, and in
some measure payments at the point of sale are
initiated and delivered electronically.
The Federal Reserve has long been among
early users of new computer and telecommunication technologies. Technological innovation has
helped the Federal Reserve to reduce the resource cost of its operations and to increase the
certainty and security of its funds transfer activities. The first computers used for check processing were installed in the early 1960s. Its wire
transfer network, dating back to 1918, was fully
automated in the early seventies. In cooperation
with the commercial banking system, in the early
1970s the Federal Reserve initiated in California
the operation of an ACH for handling of electronic transfers in volume. By 1978, ACH service
was available nationwide.
Prospectively, market and technological
forces interacting with the MCA and, to a lesser
extent, the Electronic Fund Transfer Act (title
XX of Public Law 95-630) will alter the operating
environment and infrastructure of the U.S. payments system. In consequence, the payment
patterns of users and providers of payment services are likely to undergo marked transformation.
The MCA specifies that the Federal Reserve
must begin to charge fees for its services and to
make these services available to all depository
institutions by September 1981. At present, full
services are provided directly and without cost
only to member banks—all national banks and
those state-chartered banks that elect to become
members of the Federal Reserve System. However, member correspondent banks afford non-
112
Federal Reserve Bulletin • February 1981
members access to the Federal Reserve, and
checks drawn on nonmember banks are included
in Federal Reserve courier deliveries of items
presented for payment.
The new statute is also phasing out the longstanding policy of insulating depository institutions from the competition of market interest
rates and of insulating banks from competition in
providing payment services. As interest earnings
are accrued on consumer transaction accounts
and as explicit pricing of payment services to
consumers becomes prevalent, providers of payment services will have a compelling incentive to
search for more cost-effective methods of servicing deposit accounts. This incentive should lead
to changes in the payment habits of consumers
and businesses.
CHECK-CLEARING
SERVICES
At present nearly all deposit transfers are made
b y check. The number of transfers executed in
1979 is estimated to total between 33 billion and
35 billion. In 1979 the total processed by the
Federal Reserve was 15.1 billion checks with a
value of $8.5 trillion. Most check payments involve significant delays before value is transferred because the instructions to transfer funds
and the actual transfer of funds do not flow
together. The clearing process involves the phys-
ical movement of checks to at least four different
locations, excluding return to the check writer
(chart 2): (1) The check is presented or mailed to
the payee, who in turn (2) carries or mails it to his
bank. (3) The payee's bank forwards the check to
the bank on which it is drawn, either directly or
through one or more clearing facilities. If the
check is sent to a clearing facility, (4) the clearer
must deliver it to the paying bank. Upon such
delivery or "presentment," value is transferred
from the payer's bank to the payee's bank,
usually by debiting and crediting accounts maintained at Federal Reserve Banks or at correspondent commercial banks. Moreover, about 1 percent of the checks handled will probably have to
repeat these movements in reverse because of
some defect in the instrument or endorsement or
because the check was written on a closed account or one with insufficient funds.
By a longstanding practice, when a check
reaches a Federal Reserve office the amount will
be credited to the account of the depositing bank
on the day received, the following day, or at the
latest, the day after—depending on the location
of the bank on which the check is drawn. Availability is not conditional on the time the Federal
Reserve receives the funds from the paying bank,
and any processing or delivery delay gives rise to
Federal Reserve float (credit extended by Federal Reserve Banks to paying banks). This schedule introduces an important element of certainty
2. Typical deposit transfers
CHECK
Authorization to move funds
Movement of funds
ELECTRONIC DEBIT
ELECTRONIC CREDIT
Federal Reserve and the Payments System
1. Transaction costs and expedited availability1
Percent of
Face value of checks
(dollars)
Check volume
of 1,187
million items
Check value
of $544 billion
0-65 (little or no advantage)....
63.3
2.9
0-2..
2-4
4-8
8-16
16-32
32-65
1.4
2.5
7.8
16.3
19.4
15.9
*
1
.4
.9
1.5
65-8,000 (significant advantage).
36.0
32.4
65-130
130-250
250-500
500-1,000
1,000-2,000
2,000-4,000
4,000-8,000
12.8
10.7
6.4
3.0
1.5
1.0
.6
2.4
3.9
4.6
4.4
4.5
5.5
7.1
Over 8,000 (high priority)
.7
64.8
8,000-16,000
16,000-32,000
32,000-65,000
Over 65,000
.3
.2
.1
.1
8.0
8.6
9.0
39.2
*
1. Availability advantage based on an additional transaction cost
for expedited clearing of 4 cents and an interest rate of 10 percent.
Based on a survey of check volumes handled in June 1979 by Federal
Reserve offices.
*Less than .05 percent.
in the clearing process that is valuable to banks
and their customers. It does, however, involve
an extension of Federal Reserve credit to the
banking system, and tightly scheduled Federal
Reserve clearing deadlines must be met to avoid
excessive levels of float.
The accompanying distribution of check sizes
(table 1) indicates how the Federal Reserve availability schedule may influence clearing practices.
It is typically impossible to gain availability of
more than two days, apart from weekends and
holidays, by expediting presentment, and for the
majority of checks the maximum improvement is
one day. Assuming an interest rate of 10 percent
and an additional cost of 4 cents to "out-sort"
and separately deliver the large-value items, the
table indicates that for nearly two-thirds of the
items in a typical cash letter the cost of special
handling would exceed the earnings from earlier
availability. Checks with values ranging from
$65 to $8,000 accounting for 36 percent of volume earn enough from earlier availability to
warrant expedited processing. Items in excess of
$8,000, depending on their frequency (only 0.7
percent of volume for the nation as a whole),
113
have availability earnings that justify special
couriers or electronic collection.
In the first three quarters of 1980, the Federal
Reserve handled check, draft, and other payment orders directed to more than 40,000 deposi2. Check processing volumes at Federal Reserve
offices, third quarter 1980
Number
of checks
(millions)
Value of
checks
(billions
of
dollars)
3,896.9
1,985.8
510
Chicago, Illinois
New York, New York ..
Minneapolis, Minnesota .
Philadelphia, Pennsylvania
Boston, Massachusetts ..
Dallas, Texas
232.5
200.1
188.4
161.3
157.3
139.0
143.8
156.2
62.4
64.9
79.2
68.4
620
780
330
400
500
490
Denver, Colorado
Jacksonville, Florida
Los Angeles, California .
Baltimore, Maryland
St. Louis, Missouri
Atlanta, Georgia
138.7
120.0
119.7
109.3
103.7
102.9
48.8
46.6
77.4
46.0
48.9
76.1
350
390
650
420
470
740
Kansas City, Missouri ..
San Francisco, California
Windsor Locks,
Connecticut
Miami, Florida
Charlotte, North Carolina
Detroit, Michigan
100.4
100.1
40.5
38.7
400
390
99.7
98.7
96.7
96.1
38.8
52.5
82.7
59.3
390
530
860
620
Cranford, New Jersey...
Cleveland, Ohio
Milwaukee, Wisconsin ..
Richmond, Virginia
Houston, Texas
Jericho, New York
94.0
87.8
81.6
77.3
74.5
73.6
45.9
41.2
33.9
33.8
46.5
28.0
490
470
420
440
620
380
Cincinnati, Ohio
New Orleans, Louisiana.
Des Moines, Iowa
Pittsburgh, Pennsylvania
Utica, New York
Birmingham, Alabama ..
71.0
70.7
70.2
67.2
64.7
55.5
31.7
33.0
26.8
41.7
53.8
24.0
450
470
380
620
830
430
Seattle, Washington
Indianapolis, Indianna...
Nashville, Tennessee . . .
Omaha, Nebraska
Portland, Oregon
Oklahoma City, Oklahoma
51.9
49.6
48.6
48.1
47.2
46.2
36.3
23.9
19.0
18.2
19.4
27.6
700
480
390
380
410
600
Columbia, South Carolina
Buffalo, New York
Louisville, Kentucky
San Antonio, Texas
Salt Lake City, U t a h . . . .
Columbus, Ohio
43.8
35.7
34.4
33.7
33.6
33.4
16.1
23.1
20.7
17.0
15.3
15.2
370
650
600
500
460
460
Little Rock, Arkansas...
Memphis, Tennessee
Charleston, West Virginia
Lewiston, Maine
Helena, Montana
El Paso, Texas
31.9
30.9
27.8
22.8
13.9
10.9
15.3
14.5
8.5
6.3
8.9
9.0
480
470
310
280
640
830
Office
All offices
Average
value
(dollars)
SOURCE. "1980 PACS Expense Report, Third Quarter" (Board of
Governors of the Federal Reserve System, Division of Federal
Reserve Bank Operations, Planning and Control System Sections
processed).
114
Federal Reserve Bulletin • February 1981
tory institutions at the annual rate of 61.7 million
items per banking day (table 2). Accommodating
all of the permutations of any two of these
institutions involves a maze of great size and, for
paper processing and transport, of great complexity. Two-thirds of Federal Reserve offices
handle a million or more checks per banking day.
The greater part of the check sorting to convert
incoming to outgoing items and to maintain the
necessary financial controls for funds transfers
running to hundreds of millions of dollars takes
place between midnight and 6 a.m. Defects in
check instruments and adjustments for errors
inherent in handling cash letters on a tight time
schedule required the expenditure of nearly $30
million in 1979.
ELECTRONIC CLEARING
SERVICES
Existing Federal Reserve facilities for electronic
deposit transfers are the Fed Wire and ACHs.
Fed Wire is used primarily for large-dollar transfers between financial institutions. In 1979 volume was only 35.1 million transactions, but the
value transferred was $64.2 trillion (almost eight
times the value transferred by check on only 2
percent of the volume). These payments can be
originated by telephone, on paper, or through
terminals or computers. The service is nationwide and secure; value is transferred on reserve
accounts at the time the information is sent.
The ACH network is a nationwide electronic
clearing and settlement mechanism that offers
automated credit and debit transfer services to
all financial institutions. This network is composed of 38 regional ACHs that have been organized by the members of the ACH association in
the region. The members of ACH associations
are depository institutions that have agreed to
abide by the rules and procedures for the initiation and delivery of electronic payments. The
members include 10,500 commercial banks and
2,700 thrift institutions; all receive payments but
only about 500 initiate payments for business and
government customers. At present, the Federal
Reserve operates 37 of these ACH clearing and
settlement facilities. The financial institutions in
New York operate their own ACH, but use
Federal Reserve delivery and settlement facili
ties. In the third quarter of 1980, the Federal
Reserve processed debit-and-credit transfers at
its ACH facilities at an annual rate of 233 million.
In contrast to deposit transfers authorized by
check or draft, those made by electronic credit
and, to a large degree, electronic debit are much
simpler, more direct, and more certain (chart 2).
Credits are initiated by instructions from a payer
to his bank to credit the account of the payee at
his bank on a specific date. Such instructions go
to automated clearinghouses for delivery to the
receiving bank; in an automated environment the
instructions are initiated and received by computers and terminals. Payrolls, social security,
and other high-volume, repetitive credit transfers
are well suited to this technology. Debit transfers
initiated by payees as a result of prior arrangement with payers are becoming common. They
are well suited to any periodic bill-paying transaction and especially those involving repetitive
amounts such as monthly insurance premiums.
Because many commercial banks and other
depository institutions do not have the equipment to receive electronic payment messages
from ACHs, electronic transfer is not fully cost
effective. In such cases, conversion into paper is
required. As more institutions install terminal
equipment and begin to use magnetic tape, this
limitation will become less important.
COMPETITION AND COORDINATION
IN PAYMENT
INFRASTRUCTURE
Payment systems necessarily involve some measure of coordination and competition among
banks and between the central bank and the
banking system. Coordination in the infrastructure is needed to insure the integrity and quality
of a payments service among a large number of
depository institutions. Competition in providing
payments services centers primarily on the quality and price of services offered to the customers
of depository institutions. The area of competition tends to be complementary to the area of
coordination, but there are overlaps associated
with clearing and settlement services.
Since the Federal Reserve has no deposit
accounts other than those of the federal government, commercial banks, other depository insti-
Federal Reserve and the Payments System
tutions, and foreign central banks, its role is
confined to clearing and settlement of transfers
between these entities. All transfers between
accounts at any depository institution are cleared
and settled within that institution; the Federal
Reserve clearing offices do not knowingly handle
such transactions. Banks in the same community
commonly exchange checks drawn on each other
and so no clearing facilities, and often no settlement facilities, need be provided by the Federal
Reserve. All other deposit transfers are cleared
by the Federal Reserve or correspondent banks;
often, nonbank processors are involved.
Although the Federal Reserve has offices in 48
locations, a bank often finds it more convenient
to use correspondent clearing services. Correspondents are most active in servicing local or
regional institutions, but their clearing activities
may also be nationwide.
Cost, convenience, and the availability of
funds are elements in the competition in clearing
and settlement functions. Competitive alternatives exist at the stage at which checks are being
prepared for clearing. The Federal Reserve sets
standards and conditions for the acceptance of
items it will clear. If such requirements are not
met, items must be cleared outside the Federal
Reserve or "qualified" by a bank or nonbank
processor before being accepted for clearing at a
Federal Reserve office.
The Federal Reserve determines the form and
time for presenting items to paying banks. If it
combines checks drawn on the several banks
whose processing is done by a correspondent,
holding company, or nonbank, those processors
must fine-sort the items by bank on which
drawn. If the Federal Reserve fine-sorts to the
bank level or even some intrabank locations, it
enlarges its competitive service and enhances its
competitive posture.
At present banks and check processors using
Federal Reserve clearing facilities make their
own arrangements for delivery of items to Federal Reserve offices in light of deadlines and funds
availability. According to a recent survey, some
4,200 cash letters are sent daily to the Federal
Reserve. The Federal Reserve makes deliveries
of checks to 8,300 paying banks or their processors. Most of these deliveries are by courier.
The funds availability schedules of the Federal
115
Reserve are also competitive. Although the
schedules used by the Federal Reserve in 1980
have not changed since 1951, the installation of
improved processing equipment in recent years
has made it possible to move forward deadlines
for delivery of items to the Federal Reserve in
order to achieve some given funds availability.
The practical result has been to reduce fractionally the deferrals in the regular schedule.
In fixing deadlines and the availability schedules, the Federal Reserve was attempting to add
certainty to funds transfer and to make settlement as expeditious as possible. To achieve
these ends, the time required for collection has
been based on typical processing and delivery
experience, but contingencies such as equipment
failures and uncommon transportation delays
have deferred some collections. As a result Federal Reserve float has been a regular, though
highly variable, characteristic of the clearing
operation. Float has value proportional to the
level of interest rates and the size of the checks
being cleared. The Monetary Control Act of 1980
requires the Federal Reserve to treat float as a
service and to charge for it.
At recent levels of interest rates it has become
increasingly profitable for banks whose customers deposit checks for large amounts to speed
availability of funds by arranging for special
courier service to paying banks. As the Federal
Reserve now accords the same processing and
availability treatment to all items regardless of
size, many banks provide special handling for
large-value items. The flexibility of FRCS-80 will
also permit more efficient processing: "low-value" items can be accommodated in off-peak
hours so that "high-value" items can realize for
depositors the earning potential associated with
earlier availability.
*
*
*
In summary, the upgrading of the Federal Reserve's electronic payment capabilities for the
1980s will directly enhance the efficiency of the
nation's payment system. FRCS-80 will indirectly influence the choice of users primarily because
it can augment the number of payment options
and upgrade the certainty, promptness, and in-
116
Federal Reserve Bulletin • February 1981
tegrity of payment transactions. The observable
cost reduction in clearing among these options
may be small but the indirect savings large. For
example, the ability to credit wages and salaries
electronically to employee deposit accounts
yields major savings in transaction costs for the
employer, and depository institutions need not
provide tellers, machines, or processing capability for payroll checks. The ability of merchants,
utilities, and other vendors to receive consumer
payments electronically involves transaction
savings, but greater incentives for change come
from savings in accounting, billing, and recordkeeping before and after payment.
Thus, although FRCS-80 can have important
economies for the Federal Reserve, its broader
influence should be one of making generally
available more efficient payment alternatives.
Whereas in the past payers had a major role in
deciding how a payment would be made—whether by cash, by check, or by electronic credit or
debit—now payees are likely to have more influence on that choice. Collection of checks can be
accelerated by using electronic clearing, imposing penalties on late transfers of availability, or
providing discounts for early payment. Thus, the
emergence of new electronic payment capability
with comparative advantages to payers and payees differentiated by price has significant implications for the entire payments system.
•
117
Cyclical and Secular Developments
in the U.S. Steel Industry
Richard D. Raddock of the Board's Business
Conditions Section, Division of Research and
Statistics, prepared this article.
Production by the U.S. steel industry plummeted
during the sharp contraction in overall economic
activity in the first half of 1980. Output declined
more rapidly than employment, and unit labor
costs increased markedly. Sales, as well as profits, also dropped sharply. Iron and steel production, which had peaked in late 1978, had already
fallen substantially during 1979 while total industrial production changed little. The additional 36
percent drop in iron and steel output from January through July of 1980 accounted for about
one-eighth of the total decline in the output of the
nation's manufacturing, mining, and utility industries during that period. However, steelmaking made a vigorous recovery in the four months
that followed the July trough in industrial production. By November, steel output equaled the
level at the beginning of the year, but eased at
year's end to a level substantially below its peak
in 1978 (chart 1).
The decline in 1980 was associated with disparate developments among steel-using industries.
On the one hand, the output of automobiles,
appliances, and construction supplies, all heavy
users of steel, fell sharply. These cutbacks reflected the drop in sales and the need to reduce
excessive stocks. On the other hand, some factors tended to damp the decline in steel output.
Because oil drilling and output of defense equipment and of office and computing equipment
remained strong throughout the recession, they
continued to consume a substantial amount of
steel. At the same time, imports of steel were cut
back, thereby lessening some of the impact of
reduced demand on the domestic steel industry.
Steel inventories also were liquidated during the
spring and summer of 1980, when the domestic
production of iron and steel fell much more
sharply than the use of steel.
In August 1980, a key producer announced
that it was restarting some furnaces; its inventories of semifinished steel were so low that more
output was required in order to continue operations at certain finishing mills. A rebound in the
production of consumer durable goods spurred
sharp increases in orders, and production of steel
picked up in the fall of 1980. Just as the earlier
shift from accumulation to liquidation of inventories had sped up the decline in output, the
ending of the liquidation accentuated the rebound.
The recovery in steel production, however,
has not been complete. In December 1980, iron
and steel output was 16 percent below its most
recent peak of late 1978, a level that was 3
percent below the high in 1973 and only slightly
1. Output and capacity utilization
Ratio scale, 1967=100
Federal Reserve series; seasonally adjusted.
118
Federal Reserve Bulletin • February 1981
above the high in 1969. In fact, at the end of 1980,
the output index of the iron and steel industry
was lower than in 1969, whereas total industrial
production was more than a third higher.
Steel output in the United States had grown
relatively slowly even before the peaks in 1969
and 1973. From 1955 to 1973, it grew at an
average annual rate of 1.3 percent, compared
with a rise of 4.5 percent per year for total
industrial production. Indeed, the rate of growth
of steel output was much slower than that of steel
production abroad. In the mid-1950s, the United
States produced more steel than Germany, Japan, and the Soviet Union combined. Less than
30 years later in 1980, U.S. steel output was less
than half the production in these three countries
together and significantly less than in the Soviet
Union alone. Between 1956 and 1974—the year
in which the rapid worldwide expansion in steel
output peaked—production of raw steel rose
tenfold in Japan, tripled in the Soviet Union, and
doubled in the European Economic Community
(EEC); it rose less than one-third in the United
States. The rapid rise in steel output abroad plus
the worldwide slowdown in economic growth
since 1974 has led to excess capacity and intense
competition in international steel markets—factors that have adversely affected the U.S. steel
industry.
The slow growth in domestic steel output and
capacity has been related to the use of increasingly older coke ovens, furnaces, and mills and a
relatively poor productivity performance. The
costs of pollution abatement and safety regulations and the relatively rapid increases in prices
paid by the industry for labor, raw materials, and
energy have also contributed to the sharpness of
the increases in steel costs and prices. Many
domestic users have turned to lower-priced imported steel and/or switched from steel to plastics and other alternative materials. Although
major integrated steel producers still account for
the bulk of steel shipped by the domestic industry, "minimills," which use electric furnaces and
continuous casting to recycle scrap metal into
steel mill products, have increased their market
share. 1
1. Compared with recycling by minimills, the traditional
integrated production of steel involves more extensive processing activities that typically include the conversion of coal
DIMENSIONS OF THE
DECLINE AND RECOVERY
During the year after its peak in December 1978,
the production of iron and steel declined 15
percent. Then from February to May of 1980 new
orders for iron and steel fell more than 40 percent; reflecting this weakness, many plants
—particularly older ones—were closed, and output plummeted during the spring and early summer to the lowest level since 1971. This 19-month
drop of nearly 50 percent brought the operating
rate for iron and steel producers down from a
high of almost 95 percent of capacity to a low of
51.6 percent. In magnitude, it ranks with the
severe cyclical declines in iron and steel production that began in 1957 and 1969 (table 1).
1. Major declines in iron and steel production 1
Period
July 1953-April 1954
August 1957-April 1958
November 1969-August 1971
September 1973-July 1975
December 1978-July 1980
Indexes,
1967 = 100
High
Low
99.9
95.3
123.0
129.8
125.3
64.3
51.7
67.5
87.0
68.1
Decline
(percent)
35.6
45.8
45.1
33.0
45.7
1. Based on the iron and steel component of the Federal Reserve
index of industrial production, seasonally adjusted.
Associated with, but lagging somewhat behind, the cutbacks in production were massive
layoffs of workers. From June 1979 to August
1980, 170,000 workers lost their jobs in the iron
and steel industries as employment dropped 21
percent to 660,000, the lowest level excluding
strike periods since 1939 (table 2).
Each successive employment peak in the iron
and steel industry since 1953 has fallen short of
the one before, although production continued to
trend up until 1973. Output per employee (productivity) in the iron and steel industry rose at a 2
percent annual rate from the mid-1950s until
1973. But from 1973 to 1978 productivity rose
only slightly—in part because the 1978 output
peak remained below the 1973 peak. In the
to coke in coke ovens; the production of iron from iron ore,
coke, and other materials in a blast furnace; the conversion of
iron into steel in an open hearth or oxygen furnace; and the
formation of products in a rolling mill. The total process is
relatively energy- and capital-intensive.
Developments in the U.S. Steel Industry
2. Major declines in iron and steel employment 1
Period
Jumbeir of
e mployiees
(t housai ids)
Decline
(percent)
High Low Decline
June 1953-October 1954
February 1957-May 1958
June 1968-October 1971
June 1974-November 1975
June 1979-August 1980
990.9
986.4
902.8
868.4
833.4
833.6
756.9
732.1
742.2
662.3
157.3
229.5
170.7
126.2
171.1
15.9
23.3
18.9
14.5
20.5
119
increase in employment, and total employee productivity rebounded sharply. A large gain in
productivity is a phenomenon that is typical of a
cyclical recovery because hours worked usually
are not increased so much as output in the
recovery. But the productivity gain also is related to the continued mothballing of some of the
less-efficient plants.
1. Based on U.S. Department of Labor, Bureau of Labor Statistics,
data for total employment in blast furnaces, basic steel production,
and iron and steel foundries, seasonally adjusted.
SOURCES OF DECLINE IN
recent curtailment, as is typical in periods of
recession, output dropped more sharply than
employment—in fact, the decline was twice as
much in percentage terms as the decline in
employment, while output per employee fell
about one-third.
With the sharp decline in the output of steel in
the spring and summer of 1980, profits nosedived. Income before taxes of corporations
whose major products are iron and steel declined
from $1 billion in the first quarter of the year to
$100 million in the third quarter. Steel companies
were forced to cut back spending for plant and
equipment.
The cash-flow problem was exacerbated by
increases in wage rates. Average hourly earnings
of production workers in blast furnaces and steel
mills rose at an annual rate of 11 percent during
the recession. In contrast, according to the Bureau of Labor Statistics, producer prices for steel
mill products rose at a rate of only 5 percent
during this period, as officially reported prices
eased somewhat at the end of the period. Moreover, trade reports indicate that even the price
increases reported by the Bureau of Labor Statistics were not realized in the marketplace because competitive discounting from list prices
was substantial during the summer.
Following the July low in output, a swift
rebound ensued. By October, the level of new
orders was twice as high as in May. The recovery
in steel production followed the runup in new
orders, but it was less exuberant. From July to
November 1980, the level of production rebounded nearly 60 percent to equal the level in
January. By November, the utilization rate for
iron and steel had risen about 30 percentage
points to around 81 percent.
The jump in output far exceeded the 5 percent
The sharp drop and the subsequent sharp rise in
steel output in 1979 and 1980 stemmed largely
from changes in demand for motor vehicles and
for new construction and were greatly intensified
by the excessive accumulation and subsequent
liquidation of inventories.
During 1978, steel production had risen rapidly
and by December was about 17 percent above a
year earlier. With this increase, steel output
exceeded the apparent use of steel, and inventories were built up; part of this accumulation
evidently was intended as a hedge against anticipated price increases and increasing backlogs of
orders. Partly because of the excessive inventories, production of basic iron and steel fell
more than 10 percent in the first two months of
1979, while that of steel mill products declined
about 18 percent. By March 1979, total inventories of steel mill shapes and forms had been
reduced noticeably.
Steel output then increased in March, but a
strike and a lockout in the trucking industry in
April resulted in declines in iron and steel output
and in total industrial production. After activity
in the trucking industry was resumed, production
in most industries recovered in 1979 before contracting in 1980. Steel output, in contrast, failed
to regain its late 1978 highs and weakened substantially in the second half of 1979. The main
reason for this weakness was that output of
motor vehicles and of construction supplies declined further in the second half of 1979 and even
at the end of 1980 were still far below their levels
in March 1979. These two lagging markets accounted for nearly one-third of the use of steel
mill products in March 1979, and directly and
indirectly accounted for a larger share of the
ensuing 45 percent decline in output of steel mill
products.
1979-80
120
Federal Reserve Bulletin • February 1981
STEEL FOR CONSUMER DURABLE
GOODS2
In early 1979, approximately one-fifth of the
output of domestic steel mills was shipped to
producers of motor vehicles and appliances.
Sales of new, North American-produced cars
trended down during 1979, and in response to
this development, production of motor vehicles
and parts was cut back substantially. By December 1979, motor vehicle output was one-fourth
below its level a year earlier. This sharp decline
was a major factor in slowing the growth of total
industrial output in 1979 and accounted for more
than half of the 37 percent fall in the output of
steel for consumer durable goods during 1979.
That year, demand for less fuel-efficient cars
contracted sharply, largely because of reduced
availability of gasoline in the spring, concerns
about future fuel shortages, and extraordinary
price increases for petroleum products. U.S.
automobile producers were only partly prepared
for the shift in demand to smaller cars, and
domestic production fell far more than total sales
as imports of small, fuel-efficient cars increased
significantly.
Despite the marked curtailment in the production of cars and trucks in the second half of 1979,
stocks of large cars and light-duty trucks were
still excessive relative to sales at the end of the
year, and the reduction in stocks continued into
early 1980. The need to reduce dealers' stocks
also was stimulated by the rapid acceleration in
inflation; and high interest rates made it more
costly for dealers to finance inventories and for
buyers to finance purchases. Sales of new U.S.produced cars did pick up in late 1979 and early
1980 with the introduction of the new models,
but then, reflecting other developments in the
economy, they declined sharply further. Consequently, production of motor vehicles was cut a
further 25 percent by mid-1980.
Sales of other steel-using consumer durable
goods also declined in real terms in 1980. From
the end of 1979 to mid-1980 the output of appli2. The five steel mill product components of the industrial
production index are based on industry data on shipments
from iron and steel producers to user industries. The five
components are consumer durable steel, construction steel,
equipment steel, can and closure steel, and miscellaneous
steel.
ances, television sets, and air conditioners was
reduced nearly a fourth. Production of steel for
consumer durable goods fell more than 50 percent during the 1980 decline. The overall cyclical
reduction in consumer steel from its 1978 peak
was roughly 70 percent, compared with declines
of 40 percent for motor vehicles and parts and 25
percent for appliances, TVs, and air conditioners
(chart 2). The exceptionally large decline in
consumer steel was due in part to a shift from
inventory accumulation to liquidation, which
greatly intensified the weakness from the sagging
sales of motor vehicles and appliances.
CONSTRUCTION
STEEL
Steel sold directly to the construction industry
typically accounts for about one-eighth of shipments of steel mill products. The market for
construction steel can be approximated by total
new public and private construction put-in-place,
excluding that for new single-family houses and
additions and alterations. Such construction activity contracted briefly in the first quarter of
1979 and then rose in late 1979.
Toward the end of the year, interest rates rose
rapidly, and adverse conditions of financing contributed to the weakness in construction in 1980.
The constant-dollar value of new, steel-using
construction peaked in January 1980 and apparently reached a low in August after a fall of 18
percent—two-thirds as much as in the 1973-75
decline. Output of construction steel plummeted
50 percent from January to July 1980, far great^
than the drop in overall construction and greater
than the decline in construction steel in the 1974^
75 period (chart 2).
EQUIPMENT
STEEL
An interesting aspect of the latest recession has
been the short and relatively mild decline in
production of equipment, which consumes about
a third of the steel mill output. From a March
1980 cyclical peak to a June trough, output of
equipment edged down only 2.7 percent, onethird as much as the drop in total industrial
production from January to July. Over the recent
Developments in the U.S. Steel Industry
period, demand for defense equipment has continued strong, and production of business equipment has been unusually resilient in the face of
widespread contractions in output, sales, and
profits. 3
In recessions before 1973, output of business
equipment tended to decline more than total
industrial production. But since the energy crisis
of 1973, this has not been true. In the 1974-75
period, production of business equipment declined about as much as total industrial production, and in 1980 less than half as much. The
rapid growth in drilling for oil and gas and the
major retooling in the auto industry to increase
car fuel efficiency have been significant in sustaining the demand for capital goods in recent
years. In addition, output of office and computing machines and commercial and military aircraft have been only mildly affected by this
recession.
Even though the demand for equipment remained quite strong, output of steel used to
produce equipment had declined about 40 percent by July 1980 from the range maintained for
most of the period from late 1978 to March 1980
(chart 2). This decline in output of equipment
steel was larger than the reduction in 1974-75,
but it was somewhat less than in the three
3. The business equipment market grouping of industrial
production series includes oil and gas well drilling; it does not
include automobiles used by businesses.
121
preceding recessions. In those earlier recessions,
total production of equipment fell an average of
17 percent, considerably more than the 2.7 percent in 1980.
Production of most of the remaining one-third
or more of steel mill products fell more than 40
percent from its 1978 peak to the 1980 trough.
Output of iron and steel foundries—producers of
castings used for pipe, railroad wheels, furnaces,
and motor vehicles—also fell by a similarly large
amount.
IMPORTS AND EXPORTS OF STEEL
In the 1980 recession, U.S. production of iron
and steel declined far more than can be accounted for by curtailment in the apparent domestic
consumption of steel; this difference can reflect
increases in imports, declines in exports of steel,
or liquidation of inventories.
Imported steel, however, increased its market
share only slightly during the recession, and this
increase reflected the sharp drop in domestic
production rather than a rise in imports. After
having risen sharply in the 1960s, imports peaked
in late 1977 and early 1978. Since then, the
annual volume of imports has declined. In fact,
the level of imports has fallen in recent months
below the average for the seventies (chart 3).
Nevertheless, imports still supply one-sixth to
2. O u t p u t o f c o n s u m e r d u r a b l e s , c o n s t r u c t i o n put-in-place, a n d e q u i p m e n t c o m p a r e d w i t h related t y p e s o f steel
1977
1978
1979
1980
1977
1978
"Special consumer durable goods" includes motor vehicles and
parts; appliances, TVs, and air conditioners; and cutlery. "Construetion-put-in-place" in 1972 prices is for total private plus public less
single-family houses and additions and alterations. "Equipment" is
1979
1980
1977
1978
1979
1980
the gross value of products of total equipment less business vehicles
and truck trailers.
SOURCE. Federal Reserve index of industrial production except for
construction-put-in-place, which is from the Bureau of Census.
122
Federal Reserve Bulletin • February 1981
3. Imports and exports of steel mill products
Millions of short tons
20
Imports
15
fluctuated around use during 1979, and fell below
use in the spring and summer of 1980 (chart 4).
Between the second half of 1978 and the 1980
trough, the overall decline in new supply was
about 50 percent, compared with a decrease in
use of about 34 percent.
4. Steel mill products
tons
10
110
Exports
J_L
19541960
19611967
19681974
I n. EL a i
1975
1976 1977
1978
1979
90
1980
Annual averages for seven-year periods or annual data.
SOURCE. Department of Commerce, Survey of Current Business.
one-fifth of domestic consumption—a share that
is larger than in other major industrial countries.
Imported steel mill products have dropped
largely due to (1) higher prices since 1978 when
the trigger price mechanism (TPM) was introduced and (2) weaker demand and price discounting in the United States during the period of
decline in 1980. Informal attempts were also
made to have foreign sources limit or reduce
their exports to the United States. The TPM
raises the price of imported steel to a minimum
price based on the production cost in the lowcost country, Japan. Although the TPM was
lifted for several months during 1980 because of
an antidumping suit brought by a major producer, the TPM was reinstituted in October and has
contributed to significant increases in import
prices since then.
While imports have fallen since 1978, exports
of steel mill products have increased from very
low levels. On balance, net imports have had a
rather noticeable decline, which together with
the sharp cutbacks in domestic production reduced the new supply of steel dramatically relative to use.
SUPPLY,
USE, AND INVENTORY
CHANGE
The new domestic supply of steel mill products
equals production plus net imports. The new
supply exceeded estimated use in late 1978,
70
r^u
• •
± •
Change in inventories
I
1977
1978
IWWgil figf
W
1
I
1979
1980
Federal Reserve estimates, seasonally adjusted annual rates, based
on American Iron and Steel Institute and Department of Commerce
data. Fourth quarter preliminary.
The change in inventory is equal to the new
supply less use. Consequently, in the second half
of 1978, inventories of steel mill shapes and
forms held by producers, users (manufacturers
only), and service centers rose 3.4 million tons to
36.6 million tons. After fluctuating moderately in
1979 and early 1980, steel stocks fell 6.2 million
tons from April 1980 to a low of 29.8 million tons
in October (chart 4).4 This liquidation of stocks
intensified the decline in steel output and employment in the recent recession, as similar
swings have done in the past.
Largely because of such swings between accumulation and liquidation of stocks, production of
industrial materials—iron and steel, textiles,
chemicals, and nonferrous metals—has historically fluctuated more than use. The inventory4. Assuming a $530 average price per ton in 1980 ($243 in
1972), the drop of 6.8 million tons from the end of 1978 to
October 1980 is worth about $3.6 billion in 1980 prices or $1.7
billion in 1972 prices. The bulk of the decline occurred in
about five months in 1980 and converts to an annual rate of
inventory liquidation of $7.5 billion in 1980 prices or $3.4
billion in 1972 prices.
Developments in the U.S. Steel Industry
related rebound in the output of such materials
helps explain the sharp rebound in industrial
production and employment during the final
quarter of 1980.
The cessation of liquidation and the beginning
of accumulation have particularly accelerated
the rebound in production of iron and steel. In
the four months from March to July 1980, the
production index for iron and steel plunged from
106 to 68 (1967 = 100); in the next four months, it
rose to about 107, thereby surpassing the March
level.
Only a part of this rebound can be explained
by the increase in final use of steel. Just as the
earlier decline in industrial use of steel was
smaller than the contraction in supply, the recovery in use in the latter part of 1980 was smaller
also—37 percent compared with the 73 percent
increase in supply (chart 4). There is some evidence, however, that even this increase in apparent use is an overestimate. Among major users,
motor vehicle production has recovered about
one-third of its overall cyclical decline, construction (excluding single-family houses and additions and alterations) has recovered little, and
equipment production has increased about 2 percent after a slight decline (chart 2).
In contrast, the inventory liquidation that had
been so severe in the summer and fall evidently
ended in November 1980 when the new supply of
steel mill products had increased to as much as,
or more than, the amount of steel being used.
Then, in December, production of iron and steel
eased, apparently reflecting this development as
well as declines in new orders for steel in November. Weekly raw steel production, not seasonally adjusted, changed little in the first weeks
of 1981 at a time of year when output normally
increases. Production of iron and steel still was
about one-sixth below its high in 1978.
SECULAR STAGNATION AND COMPETITION
From 1967 until the end of 1980, U.S. production
of iron and steel increased on average less than 1
percent a year. By year-end 1980, it was nearly a
fifth below the high in 1973-74 when worldwide
demand for steel was exceptionally strong. Productive capacity in the industry, which also has
123
grown very slowly—about 1 percent per year
since 1967, has not been an important constraint
on output since 1974. The slow growth of U.S.
output and capacity reflects the erosion of the
share of steel in the production of industrial
materials. The use of iron and steel has been
reduced by weakness in areas such as highway
construction and by technological changes, including downsizing of cars, miniaturization of
electronic equipment, and the substitution of
plastics and aluminum for steel.
If the share of iron and steel used in production
of durable goods had remained unchanged from
the 1971 technological relationships, the consumption of steel would have risen 40 percent
from the cyclical peak in 1969 to that in 1979.
Actually, steel supply grew only about 15 percent. Thus, in the 1970s changes in technology
have reduced the use of steel about 2 to 3 percent
per year. By 1980, this hypothetical reduction
amounted to an estimated 30 million tons of steel
mill products per year.
Output of steel has grown more slowly than
that of industrial materials in the aggregate (chart
5). Between 1967 and 1979, iron and steel production rose 13 percent, about one-fourth as
much as the increase in output of all industrial
materials or of total industrial production. Over
the same period, the combined output of plastics
and durable materials other than iron and steel
increased 75 percent (chart 5). Output of plastics
materials, which have replaced steel and wood in
many applications, quadrupled over the same
period.
Rising imports of steel mill products and declining exports also have slowed the growth of
output of the U.S. steel industry. But in terms of
lost domestic sales, this slowing was more of a
problem in the sixties than in the seventies. In
1950, before the reconstruction of industrial facilities destroyed in World War II, the U.S. steel
industry produced almost half of the world's
steel. Over the next quarter-century, this share
dropped to one-sixth, as steel industries around
5. The use of iron and steel in constant dollars based on
1971 technological relationships is estimated roughly by
combining production indexes for major steel-consuming
industries with weights based on the technical coefficients
from the 1971 input-output table published by the Department of Commerce.
124
Federal Reserve Bulletin • February 1981
5. Output of materials, fuel, and power in 1979
Plastics materials
Manmade fibers
Basic chemicals
Manmade fabrics
Industrial electricity
Aluminum
Copper
Petroleum refining
Pulp and paper
Coal
Cement
Logging and lumber
Iron and steel
Crude oil and natural gas
Cotton fabric
Wool fabric
t
100
the world were built up. Until 1959, the United
States was a net exporter of steel. In the late
1950s and the 1960s, however, the world export
price of steel fell substantially below the U.S.
price, and imports increased so much that by
1971 they were about one-sixth of the apparent
U.S. consumption of steel. During this period
exports of steel declined. Then, until 1977-78 a
variety of factors—a worldwide steel shortage
with foreign prices higher than controlled U.S.
steel prices, the energy crisis, and a sharp recession—kept imports below the 1971 level. The
trigger price mechanism and weak demand
caused imports to decline in 1979-80 to a level
not much different from that in 1971-72.
U.S. producers began to lose their comparative advantage in marketing steel in the late 1950s
when ocean transportation costs and world iron
ore prices began to decline. Major new iron ore
mines were developed in Australia, Brazil, and
elsewhere. "By the 1960s virtually any country
with a deep water port could obtain its basic raw
materials at costs competitive with the United
i
i
200
Output index, 1967=100
i
300
400
States or Western Europe." 6 Meanwhile, costs
of materials to U.S. steel producers have continued to rise, in part because of a reliance on
domestic sources of raw materials which, in the
case of the Mesabi iron ore mines, were depleted
of their most easily accessible, high-quality
ores. 7 The cost advantage in producing iron and
steel has shifted from the United States, and
even more from Western Europe to Japan and
developing countries that have much lower labor
costs. The average production cost advantage
held by Japan over the United States in late 1980
was roughly $50 per net ton, 8 in part because
6. Robert W. Crandall, "The Economics of the Current
Steel Crisis in OECD Member Countries," Steel in the 80s,
Paris Symposium, February 1980, p. 140.
7. The iron ore deposits located in the U.S. Lake Superior
district supply four-fifths of the iron ore mined in the United
States. Three-fourths of the ore mined in the Lake Superior
district comes from the Mesabi range (Minnesota). Roughly
three-eighths of the iron consumed in producing iron in the
United States is imported. Most of the imports come from
Canada and to a lesser extent from Venezuela and Brazil.
8. Peter Marcus, World Steel Dynamics, Paine, Webber,
Mitchell, Hutchins, Inc.
Developments in the U.S. Steel Industry
many of the existing plants in the United States
and Europe are older, smaller, and less efficient
than the new ones in other countries.
Labor costs in the U.S. steel industry are high
relative not only to those abroad but also to
those in other U.S. manufacturing industries.
Workers at blast furnaces and steel mills averaged $12.51 per hour in November 1980, the
highest in manufacturing and about 65 percent
higher than the average for all manufacturing.
Since 1974, this differential has grown from the
range of 25 to 40 percent that had persisted over
the preceding 20 years. Since that year, earnings
of steelworkers have been determined under the
experimental negotiating agreement, under
which the union agrees not to strike in return for
automatic annual wage increases of 3 percent
plus cost-of-living adjustments. This formula has
given steelworkers much larger wage increases
than workers in most other industries.
U.S. imports of steel mill products do not
come only from low-cost producers such as
Japan. Some imports come from relatively highcost producers in Europe that have excess capacity. Many countries developed expansion
plans in the period of rapid growth in world steel
output that culminated in the 1973-74 steel
boom. Investment based on these plans led to
capacity that turned out to be unneeded because
of the recessions and slower industrial growth
that followed. For the years 1975-78, the average
capacity utilization rate (in percent) for steel
producers was only 65.6 in Japan, 74.1 in the
United Kingdom, 61.6 in West Germany, 67.2 in
France, and 65.7 in the total EEC. Compared
with these low rates the U.S. steel companies
w^re^dding relatively well with an average operating rate of 80.6 percent. 9 This excess capacity
has contributed to the financial problems of steel
producers in many countries.
125
tion, U.S. steelmaking capacity has shown little
net growth in recent years. Although new minimills, furnaces, rolling mills, and continuous
casters have been installed, the last totally new,
"greenfield," integrated steel mill in the United
States was built in 1967. Because older plants are
generally less productive than new ones, productivity gains and profit rates tend to be relatively
low—about the lowest among manufacturing industries in the United States. Low productivity
gains and rapidly rising input costs have pushed
up unit costs and, in turn, steel prices have risen
rapidly—at a 12 percent rate since the end of
1973. Such price increases have contributed to
the reduction in the quantity of steel purchased
from U.S. producers.
Despite this bleak picture, structural change is
occurring continuously. Whereas some of the old
integrated mills located near the iron ore deposits
around Lake Superior and the coal mines in West
Virginia have been cutting back their capacity,
others are modernizing. New minimills are expanding rapidly in the South and West, reflecting
the more rapid growth of population and economic activity in these areas.
Minimills are usually located close to supplies
of scrap metal, which is melted and rerefined in
electric furnaces. Most minimills employ a continuous casting process that saves labor and
energy by converting the metal directly into a
limited range of steel mill products. Minimills
now have the capacity to produce about 15
million tons of merchant bar, reinforcing bar,
wire, and plate annually, or about one-seventh of
the tonnage of all steel mill products.
U.S. producers have replaced most of the old
open-hearth furnaces with basic oxygen and energy-saving electric furnaces (chart 6), but they
6. Distribution of steel output by type of furnace
Percent
PERFORMANCE AND
STRUCTURE
CHANGING
With the slow growth in the domestic consumption of steel and intense international competi9. Technology and Steel Industry Competitiveness, Congress of the United States, Office of Technology Assessment,
1980, p. 126.
Baisic oxygen
Open hearth
•MHHjjj
HHHHI
1965
1970
SOURCE. American Iron and Steel Institute.
1975
1980
126
Federal Reserve Bulletin • February 1981
still rely on open-hearth furnaces for a small part
of their output; Japan uses none. More efficient,
continuous casting is being employed more often, but the U.S. industry lags far behind that in
Japan and the EEC. With continued modernization and more moderate wage increases, the U.S.
steel industry probably would be able to continue
to compete effectively for the bulk of the domestic market in steel. That market may continue to
shrink inland and to be supplied less from integrated mills and more from minimills and specialty producers.
•
127
Domestic Financial Developments
in the Fourth Quarter of 1980
This report, which was sent to the Joint Economic Committee of the U.S. Congress on February
6, 1981, highlights the important developments
in domestic financial markets during the fall and
early winter.
Growth in the narrow monetary aggregates
slowed in the fourth quarter, but remained rapid
by historical standards and in relation to the
objectives of the Federal Open Market Committee (FOMC) for 1980. For the year as a whole,
M-l A and M-1B expanded at rates close to the
upper ends of the ranges adopted by the Committee after adjustment for the unanticipated degree
of shifting of funds into checkable, interestbearing deposits. However, growth of M-2 from
the fourth quarter of 1979 to the fourth quarter of
1980 was about Vi of a percentage point above
the top of its 1980 target range, despite a marked
fourth-quarter deceleration produced by sharply
reduced expansion of its nontransaction component. Growth of M-3 slowed only slightly in the
fourth quarter and was at about the upper end of
its target range for the year.
Credit demands grew substantially in the
fourth quarter, fed by rising economic activity
and unabated inflation. Market interest rates
reached new highs as the Federal Reserve sought
to moderate the expansion of money and credit.
The growth of nonborrowed reserves fell well
short of the increase in required reserves during
the quarter, and borrowing at the discount win-
Interest rates
Monthly averages except for Federal Reserve discount rate and
conventional mortgages (based on quotations for one day each
month). Yields: U.S. Treasury bills, market yields on three-month
issues; prime commercial paper, dealer offering rates; conventional
mortgages, rates on first mortgages in primary markets, unweighted
and rounded to nearest 5 basis points, from U.S. Department of
Housing and Urban Development; Aaa utility bonds, weighted averages of new publicly offered bonds rated Aaa, Aa, and A by Moody's
Investors Service and adjusted to Aaa basis; U.S. government bonds,
market yields adjusted to 20-year constant maturity by U.S. Treasury;
state and local government bonds (20 issues, mixed quality), Bond
Buyer.
128
Federal Reserve Bulletin • February 1981
Changes in reserves and monetary aggregates
Based on seasonally adjusted data unless otherwise noted, in percent1
Item
1979
1978
1979
Q4
Member bank reserves
Total
Nonborrowed
Required
Monetary base3
Concepts of money
M-1A
M-1B
M-2
M-3
1980
1980
Q1
Q2
Q3
Q4
2
6.2
6.3
6.3
9.2
2.6
.3
2.4
7.8
7.1
7.8
6.8
8.5
11.6
5.1
10.4
9.3
4.3
3.3
5.1
7.7
4.5
4.9
.4
7.4
.7
6.7
12.4
5.8
16.5
7.2
15.2
5.2
9.9
10.3
4.6
-4.4
-2.5
5.6
11.5
14.6
16.0
13.0
8.2
10.8
9.2
11.8
4
Nontransaction components of M-2
Total (M-2 minus M-1B)
Small time deposits
Savings deposits
Money market mutual fund
shares (n.s.a.)
Overnight RPs and overnight
Eurodollar deposits (n.s.a.)
MEMO (change in billions of dollars)
Managed liabilities at commercial
banks
Large time deposits, gross
Nondeposit funds
Net due to foreign related
institutions
Other5
U.S. government deposits at
commercial banks
7.4
5.0
5.0
8.2
8.4
11.3
7.7
7.3
9.0
9.8
9.9
10.0
7.2
5.7
7.3
9.1
8.0
5.8
9.4
23.1
-11.9
10.7
15.1
-4.3
7.9
25.8
-21.4
7.9
17.4
-20.3
23.7
16.4
1.0
-.5
-23.3
27.8
8.7
15.5
.6
163.9
324.2
90.3
120.0
151.9
82.7
75.7
-15.5
25.4
17.2
22.9
-33.1
9.0
-57.4
135.6
19.2
73.5
50.4
23.1
59.7
19.6
40.1
n.a.
22.0
n.a.
8.6
10.7
-2.1
10.5
6.3
4.2
-3.1
6.2
-9.3
-13.2
-4.3
-8.9
n.a.
13.8
n.a.
6.6
16.5
25.2
15.0
-24.4
n.a.
.1
-2.1
-2.3
6.4
-8.6
-.4
-11.5
2.5
-2.0
n.a.
3.3
1.5
.6
-4.0
1.6
-1.6
2.9
-2.3
8.5
16.2
8.3
1. Changes are calculated from the average amounts outstanding in
each quarter.
2. Annual rates of change in reserve measures have been adjusted
for regulatory changes in reserve requirements.
3. Consists of total reserves (member bank reserve balances in the
current week plus vault cash held two weeks earlier), currency in
circulation (currency outside the U.S. Treasury, Federal Reserve
Banks, and the vaults of commercial banks), and vault cash of
nonmember banks.
4. M-1A is currency plus private demand deposits net of deposits
due to foreign commercial banks and official institutions. M-1B is
M-1A plus other checkable deposits (negotiable order of withdrawal
accounts, accounts subject to automatic transfer service, credit union
share draft balances, and demand deposits at mutual savings banks).
M-2 is M-1B plus overnight repurchase agreements (RPs) issued by
commercial banks, overnight Eurodollar deposits held by U.S. nonbank residents at Caribbean branches of U.S. banks, money market
mutual fund shares, and savings and small time deposits at all
depository institutions. M-3 is M-2 plus large time deposits at all
depository institutions and term RPs issued by commercial banks and
savings and loan associations.
5. Consists of borrowings from other than commercial banks
through federal funds purchased and securities sold under repurchase
agreements plus loans sold to affiliates, loans sold under repurchase
agreements, and other borrowings.
n.s.a. Not seasonally adjusted.
dow rose sharply. The System raised the basic
discount rate twice during the quarter, from 11 to
13 percent. In addition, a surcharge of 2 percent
on frequent borrowings by large banks was instituted in November and raised to 3 percent in
early December.
The federal funds rate increased from less than
11 percent in September to around 20 percent by
year-end. Yields on Treasury bills and other
short-term instruments rose sharply until about
mid-December—increasing 4 to 6 percentage
points—and then fell moderately in the following
weeks. The commercial bank prime rate climbed
to a historical high of 21*/2 percent at the end of
the year. Many long-term rates also moved to
new highs during the quarter. Reflecting these
pressures and the rising cost of funds to lending
institutions, rates on new home mortgage commitments rose to around 15 percent in December.
In the fourth quarter, household borrowing
both in the consumer credit and in the mortgage
markets exceeded the pace of the third quarter.
Nonfinancial businesses also raised a greater
volume of funds than in the third quarter and
continued to rely more heavily on borrowing
from commercial banks than on issuance of
bonds or commercial paper. But bank credit
stayed well within the range specified by the
FOMC even with a large increase in the fourth
quarter. Borrowing by the U.S. Treasury remained near the pace of the preceding quarter,
Domestic Financial Developments, Q4 1980
but debt financing by state and local governments declined in the face of record borrowing
costs despite a surge in tax-exempt revenue
bonds to purchase single-family mortgages.
MONETAR Y AGGREGA TES
AND BANK CREDIT
The growth of M-1A and M-1B weakened progressively in each month of the fourth quarter
—extending the slowdown begun in September
—and finally turned sharply negative in December. For the quarter as a whole, the growth rates
of both M-1A and M-1B declined about 3Vi
percentage points, to rates of 8 percent and 103A
percent respectively. As in the third quarter,
growth in M-1A (after adjustment for shifts to
interest-bearing checkable accounts) appears to
have retraced some of the substantial second
quarter shortfall from historical money demand
patterns. Thus, expansion of M-l measures for
the year appears to have been only a little below
that consistent with their past behavior in relation to prices, economic activity, and interest
rates.
Over 1980 M-1B grew considerably more than
M-l A owing to the rapid expansion of interestbearing checkable deposits that gained momentum following passage in March of the Depository Institutions Deregulation and Monetary
Control Act of 1980. Among other provisions,
the act made permanent the then-temporary authorization for automatic transfers from savings
(ATS) and credit union share draft accounts and
authorized commercial banks and thrift institutions to begin offering negotiable order of withdrawal (NOW) accounts nationwide at year-end.
These features prompted aggressive promotion
of ATS accounts by commercial banks in anticipation of heightened competition for household
transaction balances. The resultant greater-thanexpected conversions of demand deposits, savings deposits, and other liquid assets to ATS
accounts depressed M-1A growth about 1 percentage point and boosted M-1B growth about Vi
percentage point, relative to targets set earlier in
the year. Such shifts produced a difference of
somewhat more than 2 percentage points in
annual growth rates for M-1A and M-1B during
129
1980, compared with the difference of Vi percentage point that was originally assumed.
Outflows of savings deposits at commercial
banks and thrift institutions—common in periods
of high market interest rates—resumed in November and December after unusual strength
during the summer and early fall, strength that
appeared to be associated in part with a desire
for liquidity in an environment of uncertain prospects for the economy and for interest rates. In
addition, shares of money market mutual funds
(MMMFs) contracted in the fourth quarter. The
reported yields on MMMF shares tend to lag
movements in market interest rates, and with the
sharp increases in market rates in the closing
months of 1980, some investors shifted away
from the MMMFs. In contrast, the net inflow to
small-denomination time deposits during the
quarter picked up sharply. The bulk of this
inflow was directed to six-month money market
certificates (MMCs) when yields moved well
above the 12 percent " c a p " on the maximum
rate permitted on 2V2-year, small-saver certificates (SSCs) during the last two months of the
quarter. The growth of small time deposits only
partially offset the weakness in savings deposits
and MMMFs, however, and growth in nontransaction balances in M-2 slowed to an annual rate
of 83/4 percent in the fourth quarter, about half
the advanced third-quarter pace. As a result, the
reduction in the rate of expansion in M-2 was
more marked than for the narrower aggregates.
The rate of increase in M-3 fell only slightly in
the quarter as banks issued large-denomination
time deposits to offset the weakening inflows of
demand and savings deposits.
The strong growth of reservable deposit liabilities during the summer and early fall raised
required reserves of depository institutions well
above those provided through open market operations. As a consequence, borrowing at the discount window began rising from minimal levels
in the summer to more than $2 billion in late
November and early December. The greater
tautness in the market for reserves, coupled with
increases in the discount rate and the application
of surcharges to frequent borrowing by large
institutions, led to record highs in the federal
funds rate by mid-December. Near the end of the
year, borrowing at the discount window began to
130
Federal Reserve Bulletin • February 1981
Major categories of
bank loans
Components of
bank credit
Change, billions of dollars
TREASURY
SECURITIES
8
BUSINESS
16
12
E K 1
EL
JL, o
n.n n n 1 i
OTHER SECURITIES
Q4
1979
Q1
Q2
Q3
1980
n
Q4
1979
Q1
Q2
Q3
1980
Seasonally adjusted. Total loans and business loans are adjusted for
transfers between banks and their holding companies, affiliates,
subsidiaries, or foreign branches.
decline gradually in reflection of the weakening
of the monetary aggregates, and by early January
borrowing had moved to $V/4 billion to $V/2
billion.
In November, the reserve requirement provisions of the Monetary Control Act began to be
implemented. After a phase-in period ending in
September 1987, virtually all institutions holding
transaction accounts or nonpersonal time deposits, including branches and agencies of foreign
banks, will be subject to a single uniform reserve
requirement structure. (Reserve requirements
against the newly authorized NOW accounts are
effective immediately, however.) All such institutions holding reserves are also entitled to the
same borrowing privileges from the Federal Reserve as member banks. The reserve provisions
of the Monetary Control Act are expected to
produce long-run benefits by promoting equity
among financial institutions and enhancing the
effectiveness of the Federal Reserve's control of
money and credit.
As in the early months of the year, business
credit demands in the fourth quarter were diverted from the bond market to short-term markets
as firms avoided incurring long-term indebtedness at record high interest rates. Moreover, the
credit demands were focused largely on commercial banks as increases in bank lending rates
tended to lag changes in market rates, and this
boosted bank credit expansion. Real estate lending also picked up sharply in the fourth quarter,
while consumer lending expanded in December
after nine consecutive months of contraction.
Although banks continued to enlarge their holdings of U.S. Treasury securities, the rate of
increase slowed from the third quarter.
In light of the reduced inflows to core deposits,
banks increased their managed liabilities in the
fourth quarter, after two quarters of decline, in
order to fund their asset expansion. With the cost
of Eurodollar funds moving further above rates
pn domestic large certificates of deposit (adjusted for reserve requirements), the borrowing was
concentrated entirely in domestically issued instruments; banks reduced net liabilities to their
own foreign branches in the fourth quarter, albeit
at a slower rate than in the preceding three
months.
BUSINESS
FINANCE
Commercial banks lent firms almost $17 billion in
the fourth quarter, expanding their business loan
portfolios at an annual rate of more than 20
percent, the highest seen since the fall of 1979.
Total short- and intermediate-maturity borrowing by businesses increased at a somewhat
slower rate than bank loans to businesses in the
fourth quarter as the commercial paper liabilities
of nonfinancial corporations contracted on balance over the quarter. The decline in commercial
paper outstanding, which was very sharp in the
first month of the quarter, reflected the relatively
attractive lending rates available at commercial
banks. The spread between the bank prime rate
and the commercial paper rate continued to be
narrow through most of the quarter, but the
Domestic Financial Developments, Q4 1980
spread widened in December as the prime rate
reached and remained at its record high while
commercial paper rates began to fall from peak
levels. Nonfinancial commercial paper increased
slightly in November for the first time since
June, and with bank lending rates trailing declines in market rates in December, issuance of
nonfinancial commercial paper rose more rapidly.
Yields on corporate bonds moved up to new
highs during the fourth quarter before edging off
in the last weeks of the period. In mid-December, the Federal Reserve index of yields on
newly issued, Aaa-rated utility bonds was above
W/2 percent—Vi percentage point above the level reached in the early spring. As long-term
interest rates rose over the quarter, the volume
of corporate financing declined sharply. Notes
and bonds publicly offered by all corporations
totaled $23 billion at a seasonally adjusted annual
rate in the fourth quarter, about half the level of
the third quarter. Reduced issuance by nonfinancial business, a total of only $16 billion, accounted for most of the decline. A relatively large
Business loans and short- and intermediate-term
business credit
Seasonally adjusted annual rates of change, in percent1
Period
1974
1975
1976
1977
1978
1979
1980
Business loans
at banks2
Short- and
intermediate-term
business credit3
19.3
-3.8
1.3
10.5
16.3
17.5
11.2
23.6
-4.0
4.5
13.6
18.4
20.0
12.2 E
1979-Q1
Q2
Q3
Q4
20.5
16.6
22.7
6.0
20.6
19.0
27.3
7.8
1980-Q1
Q2
Q3
Q4
16.7
-9.6
14.4
22.3E
22.0
.6
8.0
16.5 E
1. Growth rates calculated between last months of period.
2. Based on monthly averages of Wednesday data for domestically
chartered banks and an average of current and previous month-end
data for foreign-related institutions. Adjusted for outstanding amounts
of loans sold to affiliates. Includes holdings of bankers acceptances.
3. Short- and intermediate-term business credit is business loans at
commercial banks plus nonfinancial commercial paper plus finance
company loans to businesses and bankers acceptances outstanding
outside banks. Commercial paper is a prorated average of Wednesday
data. Finance company loans and bankers acceptances outstanding
are averages of current and previous month-end data.
e. Estimated.
131
Gross offerings of new security issues
Seasonally adjusted annual rates, in billions of dollars
Type of security
Domestic corporate
Publicly offered bonds
Nonfinancial
Financial
Privately offered bonds
Stocks
Foreign
1979
1980
Q4 E
Q4
QL
Q2
Q3
45
23
19
4
10
12
5
66
26
22
4
21
19
2
89
66
49
17
8
15
6
79
47
38
9
9
23
3
53
23
16
7
10
20
3
48
32
57
57
44
State and local
government bonds
e. Estimated.
proportion of the issues that were brought to
market had comparatively short maturities of
five to ten years, a typical development during
periods of high bond yields when borrowers are
reluctant to issue high coupon debt with long
terms to maturity. Many of the public offerings
by industrial corporations were convertible
bonds with ratings of Baa and below, probably
reflecting both the high level of equity prices and
the lack of funds available through private placements, which are the usual means of capital
market financing for lower-rated firms.
Private placements of corporate bonds are
estimated to have remained relatively small in
the fourth quarter, even though the cash flow of
life insurance companies, the major purchasers
of privately placed bonds, was above the unusually low levels earlier in the year. The new
commitment activity of these investors remained
depressed, apparently in recognition of the potential for future contractions of cash flow as
additional policy loans might be induced by
rising interest rates.
Stock prices generally rose during the fourth
quarter, nearly equaling and in some cases surpassing previous highs. The major indexes of
stock prices increased between 3 and 8 percent.
The elevated level of share prices continued to
encourage a large volume of issuance, including
initial public offerings, and the volume of equity
issues offered in the fourth quarter was again at a
record level, well above the high reached the
preceding quarter. For 1980, the volume of new
corporate stock issued was more than one and a
half times that in 1979 and surpassed the previous high in 1972. Industrial corporations ac-
132
Federal Reserve Bulletin • February 1981
counted for much of the increase in volume of
issuance both for the fourth quarter and for the
year.
GOVERNMENT
FINANCE
Municipal bond yields also attained unprecedented levels during the fourth quarter. At the peak,
the Bond Buyer index for general obligation
bonds reached 10.56 percent and that for revenue
bonds reached 11.41 percent. In these circumstances, the gross volume of bonds issued by
state and local governments declined considerably in the fourth quarter, $44 billion (seasonally
adjusted annual rate). This decline occurred despite a sharp rise in the volume of housingrelated revenue bond issues induced in part by
anticipation of statutory restrictions on such
issues beginning January 1, 1981. A record volume of nonhousing offerings were postponed
during the quarter, as issuers apparently awaited
more favorable conditions for long-term borrowings that could be delayed.
The Treasury's net cash borrowing from the
public totaled $27.7 billion (not seasonally
adjusted) in the fourth quarter, about the same as
in the third. The combined budget deficit exceeded borrowing by a substantial margin in the
fourth quarter, as the Treasury met nearly $9
billion of its financing needs by drawing down
the cash balance built up in previous quarters.
About $29 billion of marketable debt was sold to
the public. More than half of this amount was
raised through sales of bills, including $7 billion
in cash management bills scheduled to mature in
late April 1981, after the tax date. The volume of
noncompetitive tenders in the Treasury's regular
weekly and monthly bill auctions rose in the
fourth quarter in response to high interest rates,
but remained below the highs reached in March.
Nonmarketable debt declined $1.5 billion during
the quarter, mostly reflecting runoffs of the Treasury's foreign series. (However, during the
fourth quarter, foreign official institutions increased their holdings of marketable Treasury
debt by almost $7 billion in custody accounts at
the New York Federal Reserve Bank.) In addition, redemptions of savings bonds accelerated
to about $500 million last quarter as the sharp
rise in market interest rates apparently
outweighed the favorable impact of an increase
in the yields on savings bonds effective November 1.
Net cash borrowing by federally sponsored
agencies totaled $9.1 billion (not seasonally
adjusted) for the fourth quarter, considerably
higher than the $2.2 billion registered in the third
quarter, and also above such borrowing in the
fourth quarter of 1979. More than three-fourths
of the borrowing was accounted for by the Federal Home Loan Banks (FHLBs) and the Federal
National Mortgage Association (FNMA), which
stepped up their support of the residential mort-
Federal government borrowing and cash balance
Not seasonally adjusted, in billions of dollars
Item
Treasury financing
Budget surplus, or deficit ( - )
Off-budget deficit1
Combined deficit
New cash borrowings, or
repayments ( - )
Other means of financing3
Change in cash balance
Federally sponsored credit agencies,
net cash borrowings4
1979
1978
Q4
Q1
-23.8
-.1
-23.9
-20.4
-3.0
-23.4
21.4
-5.2
16.2
-4.4
-4.2
-8.6
-24.6
-.9
-25.5
-27.1
-3.8
-30.9
8.2
-4.4
3.8
-15.4
-4.9
-20.3
-33.6
-2.2
-35.8
-4.6
-1.9
9.8
12.4
2.9
6.7
18.9
-1.7
-8.3
19.1
4.1
-7.7
5.4
-3.1
5.9
27.1
.1
6.9
27.7
-.6
-8.7
5.5
4.7
7.3
8.6
5.1
2.2
15.3
2.6
-6.1
5.2
10.6 2
4.2
-8.6
6.3
1. Includes outlays of the Pension Benefit Guaranty Corporation,
Postal Service Fund, Rural Electrification and Telephone Revolving
Fund, Rural Telephone Bank, Housing for the Elderly or Handicapped Fund, and Federal Financing Bank. All data have been
adjusted to reflect the return of the Export-Import Bank to the unified
budget.
2. Includes $2.6 billion of borrowing from the Federal Reserve on
March 31, which was repaid April 4 following enactment of a new
debt-ceiling bill.
1980
Q2
Q3
Q4
Q1
Q2
Q3
Q4
9.1 E
3. Checks issued less checks paid, accrued items, and other transactions.
4. Includes debt of the Federal Home Loan Mortgage Corporation,
Federal Home Loan Banks, Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, and Federal National
Mortgage Association.
e. Estimated.
Domestic Financial Developments, Q4 1980
gage market. The FHLBs made large advances
to member thrift institutions, and FNMA purchased a sizable volume of mortgages.
Net change in mortgage debt outstanding
Seasonally adjusted annual rates, in billions of dollars
Q1 Q 2 Q 3
Q4e
164 161 150 144 73 123
117 115 114 104 4 4 9 2
4 7 4 6 3 6 4 0 2 9 31
142
102
40
Q2
FINANCE
Net mortgage formation increased during the
fourth quarter, and the rate of expansion was
nearly double the severely depressed secondquarter pace. Mortgage lending for both residences and other real estate essentially returned
to the rates of growth of the first quarter of the
year prior to the contraction in real activity.
Among major mortgage lenders, commercial
banks substantially increased their mortgage
lending in the fourth quarter; savings and loan
associations also increased their rate of mortgage
acquisitions and remained by far the biggest
source of home financing. The $3 billion of
housing revenue bond issues offered by state and
local governments in the fourth quarter was half
again as large as the third-quarter pace. In the
market for existing houses, an additional source
of mortgage funds was "creative" financing by
home sellers who offered such arrangements as
assumptions of first mortgages combined with
seller takebacks of second mortgages; however,
lender enforcement of due-on-sale clauses in
those states that allow such clauses put a constraint on assumptions.
The fourth-quarter increase in net mortgage
lending followed a rapid rise in commitment
activity at major mortgage lenders in earlier
months when mortgage interest rates were lower. At savings and loan associations, outstanding
mortgage commitments rose almost 50 percent
over the summer and early fall, and with the
usual lags in the mortgage process, a substantial
volume of these commitments were utilized in
the fourth quarter. However, new mortgage
commitments at savings and loan associations
fell appreciably in the fourth quarter as market
interest rates moved higher. Outstanding commitments declined somewhat despite relatively
strong deposit flows and aggressive marketing by
some associations of renegotiable-rate mortgages
carrying lower interest rates than those offered
By type of debt
Total
Residential
Other1
By type of holder
Commercial banks
Savings and loans
Mutual savings banks
Life insurance companies
FNMA and GNMA
GNMA mortgage pools
FHLMC and FHLMC pools . . . .
Other2
1980
1979
Mortgage debt
MORTGAGE AND CONSUMER
133
30
51
Q3
34
44
4
4
11
7
19
14
3
24
5
33
4
38
Q4
32
34
2
15
10
27
3
27
27
6 16
*
40
25
*
2
-1
16 12 11
12
8
1
18 17 19
5
3
3
41 2 7 3 2
29
45
1
10
5
15
3
34
1. Includes commercial and other nonresidential as well as farm
properties.
2. Includes mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds,
noninsured pension funds, credit unions, Farmers Home Administration and Farmers Home pools, Federal Land Banks, Federal Housing
Administration, Veterans Administration, and individuals.
e. Partially estimated.
* Between $0.5 billion and $ - 0 . 5 billion.
on fixed-rate mortgages. By the end of December, average interest rates on new commitments
for conventional fixed-rate home mortgages at
savings and loan associations rose to about 15
percent. Near the end of November, the ceiling
rate for mortgages underwritten by the Federal
Housing Administration and the Veterans Administration was raised to 13V2 from 13 percent in
line with market conditions.
Consumer installment credit continued to recover from the sharp decline in the second
quarter and grew at a seasonally adjusted annual
rate of more than 3 percent in the fourth quarter,
somewhat above the third-quarter pace. Automobile credit increased moderately, at an annual
rate of about 2 percent during the fourth quarter.
Interest rates on loans for new autos at commercial banks edged up from the previous quarter
but remained well below the peak reached in
May. However, the availability of auto credit
was limited by tighter nonrate terms and lending
standards at some lenders, especially in states
with binding usury ceilings. The largest portion
of the increase in consumer installment credit
was accounted for by finance companies. At
commercial banks the contraction in net consumer installment lending, which had begun in
March, moderated.
134
Industrial Production
Released for publication February 17
Industrial production increased an estimated 0.6
percent in January, after increases of 1.9, 1.7,
and 1.0 percent in October, November, and
December respectively. Gains continued to be
broadly based, except for motor vehicles and
steel, which declined again in January. The total
index in January, at 151.8 percent of the 1967
average, was 0.6 percent below a year earlier and
1.1 percent below the March 1979 high.
Output of consumer goods in January was
again about unchanged, reflecting a sharp drop in
autos and trucks purchased by consumers but
sizable gains in some other major components.
Autos were assembled at an annual rate of 5.4
million units—almost 15 percent below December and 10 percent below the depressed rate in
January 1980. Production of home goods, after
sharp rises last fall, increased moderately again
in January, and output of nondurable consumer
goods increased 0.9 percent. Output of business
equipment continued at the strong pace of recent
months, with sizable advances in building and
mining, manufacturing, power, and commercial
equipment; as a whole it was almost 2 percent
above its year-earlier level. Output of construction supplies increased 1.2 percent further; although production in this sector registered large
gains in recent months, January output was still
5l/2 percent below a year earlier.
1967 = 100
Grouping
Total industrial production.
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment ...
Defense and space ....
Intermediate products ...
Construction supplies
Materials
p Preliminary.
e Estimated.
Production of materials advanced 0.7 percent
in January, with sizable gains in the durable and
energy groupings. Within durable materials, the
output of consumer durable goods parts and raw
steel declined, but production of equipment parts
and other durable materials advanced sharply.
Nondurable materials increased 0.5 percent,
with a sharp rise in chemicals partially offset by a
reduction in paper. Production of energy materials was up 0.8 percent.
TOTAL INDEX
Seasonally adjusted, ratio scale, 1967= 100
MATERIALS OUTPUT
- 160
-
140
MATERIALS:
BUSINESS EQUIPMENT,.,
Nondurable
J_
J
L
CONSUMER GOODS:
Durable / V -
BUSINESS SUPPLIES
V
\ /'N
Nondurable
1967-70 = 100
160
AUTOS:
r
120
^
100
Sales
J
12
H / V ^ '
V VL v
80
60
Annual rate, millions of units
lb
Stocks
__
Domestic assemblies \ f \
10
_
6
7 i i i i i *
1975
1977
8
A
1979
1981
1975
1977
1979
Percentage change from preceding month
1980
1981
1980
Dec."
Jan.6
Aug.
Sept.
Oct.
Nov.
150.9
149.8
148.1
147.9
141.1
150.6
176.4
101.0
156.2
145.9
152.7
151.8
150.5
148.6
147.8
137.5
151.9
178.2
101.9
157.5
147.7
153.8
1.0
.7
.3
.5
1.6
1.7
.2
3.2
.4
1.9
1.3
1.3
1.6
5.2
.3
.6
.1
-.3
1981
Federal Reserve indexes, seasonally adjusted. Latest figures: January. Auto sales and stocks include imports.
1.0
.8
1.1
.1
.5
2.1
2.0
3.5
1.5
3.2
2.7
NOTE. Indexes are seasonally adjusted.
1.1
1.1
1.2
1981
1.0
1.1
.9
2.4
.3
1.3
1.5
Dec.
Jan.
1.0
.7
.5
.6
.5
.3
.0
-.1
-2.6
-1.3
.5
1.0
1.0
2.3
.8
1.6
2.2
2.8
2.7
1.5
1.7
Percentage
change
Jan. 1980
to
Jan. 1981
-.6
.4
1.1
-.1
-3.4
1.2
.9
1.0
.9
1.9
5.1
.8
-2.1
1.2
.7
-5.6
-2.0
135
Statements to Congress
Statement by Paul A. Volcker, Chairman, Board
of Governors of the Federal Reserve System,
before the Committee on Appropriations, U.S.
Senate, January 27, 795/.
I am pleased to participate in this hearing and to
outline some of the key issues for economic
policy in 1981 and beyond. The inauguration of a
new President and the installation of a new
Congress provide a prime opportunity to reassess federal budgetary trends and, in particular,
the role that fiscal policy can play in solving the
economic problems that confront us. Coming
from the Federal Reserve, I will naturally want
to focus special attention on the interrelations
among fiscal policy, monetary policy, and conditions in the capital markets.
I have spoken often of the importance of
breaking the inflationary momentum that grips
our economy. That seems to me the preeminent
objective of economic policy, partly because
prospects for sustained growth rest on success in
that effort.
As you know, inflationary pressures remain
intense today even though the level of economic
activity is little higher now than it was in early
1979; unemployment has been high for almost a
year; and appreciable excess capacity persists in
many important industries. Indeed, the underlying inflation rate today appears at least as high,
and probably higher, than a year ago. Declining
productivity has compounded the effects of
growing wage increases in pushing up unit labor
costs. Moreover, as we look to the months
immediately ahead, the possibility of a renewed
surge in energy and food prices represents a
serious source of concern.
I believe that the public is acutely aware of the
dangers of continuously escalating prices and
recognizes that combating inflation must be our
top economic priority. That perception is an
important first step in moving toward price stability. But the general perception will be meaningless unless it is accompanied by a sustained
commitment to concrete policies that will, in
fact, reduce inflation, even when those policies
entail risks and strains for particular groups or
for the economy as a whole in the short run.
Given the deeply ingrained patterns of inflationary behavior and expectations that now characterize our attitudes and our institutions, we
should not assume that changes in those behavior patterns or expectations will come easily. To
underestimate the challenge would be to miss the
opportunity to set the economy in a new direction. In the wake of missed opportunity we
would only face more prolonged, and ultimately
more painful, adjustments.
Conversely, if we truly face up to the job and
successfully turn the corner in terms of inflation
and inflationary expectations, then I believe that
progress will come more readily. The baleful
interactions among inflation, low savings, congested capital markets, low growth, deteriorating
productivity, and budgetary deficits can potentially give way to a benign process of mutually
reinforcing growth, investment, and a return to
price stability.
As part of that process, the Federal Reserve
has been, and will continue to be, guided by the
need to maintain a disciplined monetary policy.
Our various targets for monetary and credit
growth are an important means of expressing
that intent.
At the beginning of last year, we adopted
objectives for the monetary aggregates that were
generally agreed to be broadly appropriate with
the need to encourage a return to a more stable
economic environment. Over the course of the
year, growth of the various measures of money
and credit was—on balance—close to or only
slightly above the upper ends of the announced
ranges. With the quick and surprisingly strong
recovery in business activity in the latter part of
the year, the expansion of money and credit was
not sufficient to meet all the demands for financing the combination of real growth and rising
prices. Even though monetary aggregates for a
136
Federal Reserve Bulletin • February 1981
time exceeded targeted growth, interest rates
returned to historically high levels, placing heavy
burdens on the more credit-sensitive areas of the
economy and threatening the continuation of the
recovery.
Looking at that immediate situation, the point
can be and has been made that high interest rates
and strained capital markets may dim prospects
for business expansion and private job creation
that would otherwise be desirable. Certainly,
housing, some smaller businesses, and others
particularly dependent on credit feel unusually
strong pressures. But the problem cannot usefully be viewed in the single dimension of monetary
policy, and our sights must extend beyond the
next few months.
I see no alternative to continued restraint of
excessive growth in money and credit if we are to
break the inflationary momentum. If that momentum is not broken, interest rates will remain
high indefinitely. In that connection, expectational factors can be particularly important. To
the extent that economic trends and public policies are perceived as consistent with more inflation rather than less and government financing
needs are expected to remain high, savings are
discouraged and borrowing encouraged. In an
already inflating economy, the net result of trying to bridge the gap by excessive creation of
money and credit would be to validate the inflationary expectations and inflationary trends that
give rise to the problems in the first place. The
way to get interest rates lower and to keep them
there is to deal with inflation first.
The events of the past several months demonstrate clearly that heavy reliance on monetary
policy in that effort focuses the immediate strains
and risks on financial markets and those most
dependent on them. Strong complementary actions in other areas are essential for a balanced,
effective program to produce the earliest possible
impact on inflationary behavior and to clear the
way for sustained, full, and broad-based expansion in real activity.
The first—and perhaps the most important—of
these other instruments is the fiscal posture of
the federal government. As recently as last
spring, a substantial effort was made by the
administration and the Congress to reduce the
growth of expenditures and to restore budgetary
discipline. In spite of that effort, trends in federal
spending continue to exceed growth in the inflating, nominal gross national product. For instance, the budget submitted by the outgoing
administration projected federal spending (including off-budget outlays) of more than 24 percent of the GNP during the current fiscal year,
fully 1 percentage point higher than last year and
appreciably above any earlier year of the
postwar period. To be sure, a significant part of
this year's higher spending and the enlarged
deficit reflects higher unemployment. But the
underlying trend reflected in "out year" budget
projections—which have almost always fallen
short of subsequent reality—remains excessive,
even without taking account of needed tax reductions.
I see no escape from the central proposition
that to make room for tax reductions and for
private credit demands—both required to support economic growth and productivity gains
—federal expenditures and off-budget credit programs will have to be cut back sharply from
current projections.
The problem is not limited to the current fiscal
year. The time has come to take a hard look at
the "built-in" spending programs that are not
readily—or at all—controllable by the annual
appropriations process. This process of spending
control should begin immediately, with the aim
of achieving substantial gains over a period of
several years. The need is all the more urgent in
light of the broad consensus that defense spending must rise.
I know the task is difficult in the best of
circumstances—and those difficulties are multiplied by the institutional setting in which you
work, where the focus has been more on the
effects of appropriations in the current or next
fiscal year than on the longer-term budgetary
consequences of the so-called entitlement programs.
What must justify the effort is its central
importance. I have some sense of what you know
more directly—that every federal program has
some legitimate purpose and a well-entrenched
constituency; that particular groups—including
those that clearly support reductions in the aggregate—will argue that their program is the
exception; that one man's concept of fluff and fat
is another man's perceived sacrifice; that a general consensus on a broad objective can dissolve
Statements to Congress
137
in the process of allocating cuts. I also know that
it is easy (and right!) for me to say that the decisions about what should be cut back are properly
yours and the President's, not mine. But I must
emphasize that, in the interests of a healthy
economy and moderating tensions in financial markets, I see no alternative to large spending cuts.
In that connection, I need not linger over the
desirability of prudent tax reduction and restructuring. As things stand, federal taxes are absorbing a rising share of aggregate personal and
corporate income, and the sheer size of that tax
burden adds to costs and impairs incentives. But
I must convey to you my conviction that decisions for substantial tax reduction must not run
ahead of the harder decisions to achieve large
cuts in spending programs. If these decisions are
not in harness, the potential benefits of tax
reduction could all too easily be swamped by
inflationary forces and congested credit markets,
damaging the very incentives and investment
sought. And, appraisals of the beneficial effects
of tax reduction on economic growth, and therefore the revenue "feedback," need to be realistic
in light of experience.
Beyond the budgetary process itself, but often
related to it, are the myriads of government
programs that tend to raise costs or insulate
sectors of the economy from market forces.
Indeed, I believe a substantial part of the inflationary bias built into our economy over the past
quarter century comes from such programs.
I recognize that some of those programs reflect
a conviction that, within our market-oriented
system, those experiencing financial and business reverses not entirely or primarily of their
own making are entitled to an economic "safety
net." There is a legitimate view that—at a time of
economic pressure and strain—the dependence
of one sector of the economy on another may at
times require cushioning pressures of the weakest links in the system so that its problems do not
infect others. Other programs reflect valid concerns about the environment, health, and safety.
What is necessary is to achieve a better balance
between those continuing objectives and the
requirements of a well-functioning competitive
economy, and particularly examination of those
regulations and policies that may not even serve
well their immediate objectives.
Accomplishing these goals will require an
enormous effort by the Congress and the administration in the months and years ahead. We are
talking about changing behavior patterns that are
grounded in an assumption that inflation will
continue—an assumption that has been years in
the making. Achieving that change is not a
simple process. But neither is it beyond our
collective capacity, working together with the
understanding of what is at stake. The result will
repay the effort many times over. That understanding is critical to success and I hope will
underlie your deliberations and actions in the
weeks and months ahead.
•
Statement by Henry C. Wallich, Member, Board
of Governors of the Federal Reserve System,
before the Temporary Subcommittee on Industrial Growth and Productivity of the Committee on
the Budget, U.S. Senate, January 27, 1981.
financial and regulatory actions by the government.
The decline in productivity is a familiar fact.
Though all its roots are not fully understood, I
believe that in good part they are related to
inflation. Inflation hampers business investment,
an important source of productivity, by distorting reported profits; such distortion results in
excessive taxes, thereby reducing the return on
investment. The uncertainty created by inflation
raises costs, by requiring higher risk premiums,
and generally interferes with business planning.
One major contribution to increased productivity
would be to lower the rate of inflation.
But there is also an important reverse relation,
I appreciate this opportunity to discuss with you
my personal views on the prospects for increased
growth in productivity in the United States and
particularly on the role that the federal government should take in such an effort. Your outline
lists an impressive range of issues in this area. I
hope it is agreeable to the committee if I address
myself principally to the interaction between
productivity and inflation and to implications of
138
Federal Reserve Bulletin • February 1981
running from productivity to inflation. This causal nexus involves a consideration of trends in
unit labor costs—defined as the total compensation paid to workers divided by the amount they
produce—which most economists believe is the
most important determinant of underlying price
trends. This belief arises from the fact that labor
inputs directly account for about two-thirds of
the costs of producing the gross national product. Any tendency for price increases to fall
short of the trend in these costs means that other
unit costs of production, or more likely profit
margins, must be reduced. Because some minimum level of profit must be maintained for firms
to remain in business, the inflation rate cannot
remain below the rate of increase in unit labor
costs for any extended period. In the short run,
of course, other factors, including shifts in demand, resulting perhaps from business fluctuations caused by changes in government deficits
or the growth of the money supply or disruption
in supplies in industries such as energy and food,
can pull prices away from unit labor costs. But in
the long run, prices will follow unit labor costs.
Changes in unit labor costs in turn are determined by the difference between wage increases
and the rate of improvement in worker productivity.
In this framework, we can see the serious
implications of the deteriorating trend in productivity. In the earlier postwar period, labor became accustomed to increases in real wages on
the order of 2l/2 percent or so that accompanied
the productivity gains of that era. These expectations have adjusted sluggishly to the slower
growth of productivity. Thus, efforts are being
made today by workers to increase real wages at
a rate faster than the advance in output per hour.
Such efforts, however, only tend to squeeze
businesses. Firms then find that they must increase prices at ever-increasing rates to maintain
profitability. The resulting acceleration in prices
frustrates labor's original efforts to increase its
standard of living. These efforts run into the hard
fact that there is not enough additional output to
meet these demands. Inflation rates consequently trend up.
This analysis underscores the importance of
improving our productivity performance. But to
compare productivity with the rate of inflation or
nominal wage demands is not a plausible way of
looking at the problem. Wage demands, even
though stated in current dollars, take into account the rate of inflation. In other words, they
are actually demands for increases in real wages.
The real increases demanded may be relatively
moderate and not much above gains in productivity. But it is the difference that is decisive,
because it can give rise to an upward wage-price
spiral. An increase in rate of growth in productivity above the level of real wage demands could
be converted into a winding down of the inflation
rate. The increase would not have to be large
relative to the rate of inflation, since real wage
demands also tend to be low relative to our
present high rate of inflation.
Those who argue that a 1 or 2 percent gain in
productivity would not make much of a dent in
our high rate of inflation ignore the dynamic
aspect of the relationship between the efforts of
labor to increase real wages and the productivity
gains that make these increases possible. If the
trend rate of increase in productivity is larger
than the real wage gains sought by employees
and if the degree of competition does not diminish, firms will be able to increase prices by less
and less while still maintaining profits. If this
deceleration continues to work over time, the
gains in terms of reducing the inflation rate could
be substantial. At the same time, the reduced
rate of price increase will enable labor to realize
the fruits of productivity gains in rising standards
of living.
A wide range of federal programs have been
offered as a means of bolstering productivity.
Many of these would require more government
intervention and regulation in private markets. In
my view, most of the regulatory and interventive
proposals may do more harm than good with
respect to productivity. The costs of some of
them are indirect and not readily apparent. Many
government regulations indeed are plainly adverse to productivity, a situation that is not likely
to be remedied by piling regulation on regulation.
Some forms of market intervention, including
price supports, wage and income supports, import restrictions, and a variety of regulations,
seek to insulate certain individuals or business
firms from market pressures. While the purposes
of such protection may be worthy, one inevitable
by-product of these policies is to reduce efficiency. Government actions may lead to a subopti-
Statements to Congress
mal allocation of resources, thereby limiting the
growth potential of the economy, or they may
simply add to costs, thus contributing to the
inflationary bias of the system. These risks are
present whether the market pressures originate
at home or abroad.
One of the most common types of suggestions
for government actions to encourage productivity growth has been a call for intervention in the
credit markets to stimulate increased capital investment by business. Programs of this sort
include interest rate subsidies, direct government loans, or loan guarantees designed to affect
credit allocation to competing groups of borrowers. Such programs seem to imply that funds are
not available from private lenders for creditworthy borrowers. That, however, is likely to be
the case only in small part, given the efficient
nature of our capital markets. Thus, pushing
money into some particular sector by means of
subsidies to lenders may result to some extent in
pushing other money out of that sector. Also, to
the extent that borrowers who previously did not
receive credit now can draw on the limited pool
of available savings, other borrowers may be
crowded out. That is the ultimate result of the
already enormously expanded demands of the
federal government on capital markets as represented by its direct deficit and by the borrowings
of off-budget and sponsored agencies, which in
fiscal year 1981 are estimated to total up to $110
billion. That amount is of roughly the same order
of magnitude as total personal saving.
The rationing of credit through mechanisms
other than the normal adjustment of interest
rates to balance supplies and demands for funds
would also carry a very expensive price tag in
terms of market distortions. For example, managers of firms might be less inclined to produce
their products efficiently if government programs
ensured credit supplies at below market interest
rates. Supplies of subsidized credit might exceed
what would strictly be needed to achieve specific
purposes and so might be partly wasted. Given
the advantages of doing so, unworthy or nonessential purposes would be dressed up as deserving, creating excessive demands on the program
or depriving some of the deserving. Finally,
government measures to finance or otherwise
subsidize, in the nature of our democratic process, are likely to focus on trouble spots, such as
139
old and perhaps inefficient firms and industries.
In that way, activities that the market would
eliminate would tend to be preserved, and the
progress of productivity would be impaired. In
general, government intervention in credit allocation tends to politicize financial markets as
decisions would have to be made as to what
types of loans are to be favored over other uses
of funds. Because of these distortions, an expansion of our governmental presence in credit
markets is more likely to depress the productivity performance of the U.S. economy than to
improve it.
If the Congress were to decide that actions to
stimulate investment are necessary in order to
boost productivity, I would suggest that changes
in the federal tax structure would be potentially
the most fruitful approach. The logic of this
approach rests in part on the role federal taxation
has played in discouraging investment by reducing its profitability. This is an especially important problem during inflationary times if, as is the
case today, tax deductions for depreciation are
allowed only on a historical cost basis, rather
than at a rate that enables the plant and equipment to be replaced at current prices.
On several previous occasions during the
postwar period, incentives to and financing of
business capital formation have been increased
through a variety of mechanisms. These include
accelerated depreciation, an investment tax
credit, and a reduction in corporate profit tax
rates. Not surprisingly, a similar set of proposals
has been advanced in recent years to help improve capital formation and, hopefully, the productivity problem. Judging from studies of the
effects of tax incentives to stimulate investment
introduced in the past, these types of incentives
would probably have their desired effects.
Proposals also have often been made to increase investment by stimulating personal saving, and they have indeed been used in various
countries. Given the adverse treatment that
American savers have received through the interaction of inflation, regulation, and the tax
system, I have considerable sympathy for such
proposals on equity grounds.
For example, we must seriously ask ourselves
whether it makes sense to tax as savers' income
the inflation premium inherent in present-day
high interest rates, thereby driving interest rates
140
Federal Reserve Bulletin • February 1981
still higher. By the same token, I would question
the wisdom of continuing to allow a tax deduction to borrowers for the same premium, with the
same upward effect on interest rates. In this
regard, we must also ask ourselves whether it
makes sense to subsidize homeowners through
tax deductibility of the inflation premium at a
time when the resulting high mortgage rates
cause a depreciation of old mortgages that creates serious pressures for the financial institutions that serve housing.
On efficiency grounds, however, I must question the merit of subsidies to particular forms of
saving. The main effect of subsidies is likely to be
to reshuffle the allocation of savings among savings instruments, rather than to raise total saving. I feel less certain about this judgment in
relation to a device employed in France and
known as the Monory Law (Law for the Channeling of Savings to the Financing of Enterprises), which allows a tax deduction, within
limits, for investment in equities. Even though
this measure may have no great effect in promoting saving, it seems to raise share prices and thus
to reduce the cost of equity capital as well as to
improve the structure of financing.
Another way to increase available savings is to
reduce the demands made by the public sector on
financial markets. Moving toward budget balance would free for private sector use far more
funds than are likely to result from most schemes
designed specifically to increase savings. Thus,
while a tax cut has much to recommend it in
terms of changing incentives, it should be approached circumspectly from the point of view of
its budgetary impact. Right now taxes are far too
high to permit adequate incentives and savings.
But to increase the deficit would be inflationary,
and tax reduction must, therefore, be conditional
on progress in reducing government spending.
Any tax cut matched by expenditure restraint
would be helpful, but in light of our need to
stimulate productivity, a cut directed toward
raising investment, both in tangible and also in
human capital, would be particularly appealing.
For its part, the Federal Reserve is attempting
to foster an environment that should facilitate a
reduction in overall inflation pressures and thus
promote more vigorous growth and prosperity. A
reduction of inflation, as I noted earlier, should
make an important contribution to productivity.
Also, a lower inflation rate is the only feasible
way of reducing interest rates. An easier monetary policy might reduce interest rates for a short
period, perhaps on the order of a few weeks or
months. But, as soon as the inflationary implications of this policy became obvious to the market
—and this would not take long—interest rates
would move up with expected inflation, as they
have done before. Thus, the Federal Reserve
really has no option other than to exert restraint
in order to set the stage for the long-run gains in
employment and productivity that we have every
right to expect from the American economy.
Since your committee's outline refers to social
compacts and other organizational arrangements, I would like to close by mentioning an
item of personal interest that may not be unfamiliar to you—the tax-oriented incomes policy usually referred to as TIP. There are many forms of
TIP that can be broadly classified into proposals
that depend on the "carrot" and on the "stick"
approach respectively. My preference is for an
approach that levies a tax on firms granting
excessive wage increases. This approach would
be simpler administratively and probably more
effective than the alternative. In my judgment,
such a device could be enacted once public
concern about the persistence of inflation began
to exceed the natural reluctance of business and
labor to accept such a proposal.
On the other hand, I am aware that the carrot
approach might be more appealing and easier to
enact than my stick approach. In view of the
current budgetary problems, however, such a
TIP would only be appropriate if and when
general economic conditions or spending restrictions justified a reduction in federal taxes, the
benefits of which could then be withheld from
noncompliers. The Economic Report of the
President by the former Council of Economic
Advisers explores various kinds of TIP in detail
and concludes that it would be too late to tie a
TIP to a 1981 tax cut, though it might be considered on a subsequent occasion. I would just say
that any tax cut proposal should be examined
with a view to whether a TIP could be associated
with it.
•
Statements to Congress
Statement by Paul A. Volcker, Chairman, Board
of Governors of the Federal Reserve System,
before the Joint Economic Committee of the
U.S. Congress, February 5, 1981.
I am pleased to be here to review with you the
current economic situation, to share with you my
views on some critical considerations in the
shaping of monetary policy, and to explore the
relationship of monetary and other economic
policies. I have emphasized on a number of
occasions that we now have a rare opportunity to
adopt and reinforce policies to bring inflation
under control and to set the stage for sustained
expansion and productivity growth. That sense
of opportunity stems, in substantial part, from a
conviction that the American people recognize
that we must decisively turn the corner toward
price stability and reduce the demands on the
federal government for spending and regulation.
That will, in turn, lay the groundwork for restoration of vigorous and sustained economic
growth.
At the same time, there must be understanding
that reducing inflation will require changes in
behavior patterns that have become deeply ingrained. In the short run, some sacrifice and pain
are inevitable. The discipline required will be
amply repaid if strong policies are carried
through with persistence and resolution.
To be successful, the effort must be carried out
over a broad range of policies. Each of the
policies will entail difficult choices, which must
be confronted directly. But those choices will be
made easier to the extent that policies are integrated in such a way as to avoid excessive
burdens or emphasis on one policy instrument or
another and do not work at cross purposes. It is
in that light that I welcome this chance to discuss
the Federal Reserve's commitment to a monetary policy consistent with reducing inflation and
to consider some of the implications for other
policies.
First, a few words about the current unsatisfactory economic situation. Last year we experienced exceptionally sharp swings in real output
and employment, and on balance there was virtually no economic growth. Inflation did not slow.
Productivity performance remained dismal, and
unemployment rose.
Looked at over a longer period, real wages
141
have tended to decline, reflecting both the absence of productivity growth and the sharp increases in the prices of basic items such as food
and energy. Despite some recent improvement in
household balance sheets, savings remain relatively low.
Some important industries—including those
related to energy and defense—have continued
to expand vigorously. However, a number of
basic industries—such as autos, steel, and housing—came under severe pressures in 1980. Wide
swings in consumer spending created uncertainties about future sales, and weak markets
brought pressures on profits for many corporations. In addition, many firms had to contend
with high and sharply fluctuating interest rates.
With the slow growth of final sales over the year,
the margin of unused plant and equipment in
some industries remains sizable. The contrasting
movements in different sectors of the economy
add to the complexities facing economic policy.
Considerable softening in labor markets has
taken place in many areas of the country. But
there has been little reflection of that development in lower wage settlements or reduced cost
pressures. With inflation high and real wages
falling, the effects of unemployment have been
offset by the desire to "keep up" with prices and
to restore real income—a desire that, however
understandable, cannot be met so long as productivity fails to rise and higher energy and food
prices must be absorbed. Instead, the self-defeating inflationary spiral is perpetuated.
The challenge is to break the insidious pattern
of rising prices and costs that, itself, underlies so
much of the problems of high unemployment,
slow growth, and high interest rates.
Inflation has been building for a long time.
There are a number of contributing factors—insufficient saving and investment, declining productivity growth, large and persistent budget
deficits, huge increases in oil prices, and adverse
events in agricultural markets—accompanied at
times by excessive growth of money and credit.
But whatever the particular causes of inflation,
we are faced today with circumstances in which
expectations and behavior patterns tend to keep
the momentum going, discouraging thrift, encouraging speculation, and building in higher
costs for the future. Those attitudes must be
changed. They will not be changed without
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Federal Reserve Bulletin • February 1981
strong and credible policy commitments and, I
suspect, visible evidence for a time that inflation
is, indeed, subsiding.
Firmly disciplined monetary policy has a central—indeed indispensable—role to play in the
process of restoring price stability. As you know,
setting specific targets for monetary and credit
growth is one aspect of that policy.
Last year's rapidly changing economic conditions, changing inflationary expectations, the imposition of credit controls in the spring, and
other factors resulted in wide swings in the
demand for money and credit. After a very sharp
but very short downturn, the economy rebounded much more strongly than almost anyone expected last fall and early this winter. After falling
short for a time, the monetary aggregates temporarily exceeded their growth targets. There was
unusual—and undesirable—volatility in financial
markets.
On balance, most of the monetary aggregates
did finish the year within or very close to our
target ranges. But it was also evident that the
expansion of money was not sufficient to meet
the demands for financing rising prices, large
deficits, and faster real growth.
I am well aware that the resulting increase in
interest rates has placed a particularly heavy
burden on housing, small business, and other
credit-sensitive sectors of the economy.
The basic point is, however, that we cannot
escape that problem by simply creating more
money. In the end, that course could only aggravate inflation. Indeed, if the Federal Reserve
were perceived to be validating the inflationary
process, inflationary expections would surge and
lead to still higher interest rates. In the end,
lower interest rates are dependent on reducing
inflation, and restoring price stability will require
lower rates of monetary and credit growth.
In pursuing that necessary approach of monetary restraint, the pressures converging on financial markets can be relieved by appropriate fiscal
and other policies aimed toward restoring productivity, reducing costs, and restoring budgetary balance. Events in financial markets last year
demonstrated all too clearly the dangerous
strains that arise in credit markets when necessary monetary restraint is accompanied by large
deficits and expanding business activity.
The proposition that the budget can be bal-
anced or can move into surplus only when the
economy is operating at reasonably satisfactory
levels has merit. But the record of the past
decades, even by that test, is poor. We have had
only one balanced budget in the last twelve years
and two in the last twenty—periods that included
mostly prosperous years. Furthermore, government spending continues to consume an everincreasing share of our national resources, making balance more difficult and requiring a tax load
that is itself a drag on the economy. According to
the budget just submitted by the outgoing administration, federal budget and off-budget spending
will approach one-quarter of the gross national
product this fiscal year. Federal taxes will be
equivalent to 21.4 percent of GNP—close to the
wartime record of 21.9 percent.
Against that background, I see no escape from
the proposition that a large cutback from projected increases in spending in coming years is a
crucial linchpin in an effective overall economic
program. I know how difficult that will be to
accomplish in practice. Many people will support
cutbacks in general, but not in their favorite
program—and virtually every program is somebody's favorite. Furthermore, any realistic expenditure control program must extend over
years and include important "uncontrollable"
items—including entitlement programs.
Administration spokesmen have rightly emphasized that the purpose of the program should
not be simply one of aiming toward a balanced
budget but of making room for large tax reductions. In fact, taxes are rising. Without a cut,
federal receipts will reach the highest level ever
in fiscal year 1982 relative to GNP. I do not
doubt the proposition that our level and structure
of taxation reduces incentives, acts as a deterrent to investment, and distorts economic decisionmaking. But it is critically important that tax
reduction proceed in harness with spending restraint, and as a practical matter the credibility of
that approach will depend on early congressional
action to deal with spending. The point is only
reinforced by the consensus that one large element in the budget—defense spending—needs to
be increased.
I would also emphasize the relevance to any
attack on inflation of changing or modifying
other government policies that have tended to
increase costs or reduce competitive pressures.
Statements to Congress
143
Over the years we have established a number of
programs that have the objective of sheltering
different groups from unanticipated economic
setbacks or from competitive forces. We have
also embarked on extensive and expensive new
efforts to promote safety, to improve the environment, and to serve other purposes. Each of
these programs has laudable and even necessary
objectives. It can also be legitimately pointed out
that most of them, taken individually, do not
have a decisive impact on inflation.
However, I believe the effect of many of these
programs, taken together and operating over a
number of years, has been much more important.
Their cumulative impact has been to contribute
significantly to the inflationary bias in our economy. Like cutting the budget, addressing this
problem will require difficult tradeoffs. But I
believe this is an area to which we have paid far
too little attention in the past and one that I
would encourage all of us to look at more carefully in the future, with the intention of seeking the
objectives of these programs with less cost in
real terms or in inflation.
I do not want to minimize in any way the
enormous challenge facing the Congress, the
administration, and the Federal Reserve. However, I do believe we may be seeing fundamental
changes in public attitudes that should make
things possible now that have not been possible
in the past. I am confident we can capitalize on
this newfound opportunity, making whatever
short-term sacrifice is involved in the interest of
restoring a stronger and more stable economy.
Statement by Nancy H. Teeters, Member, Board
of Governors of the Federal Reserve System,
before the Subcommittee on Consumer Affairs of
the Committee on Banking, Finance and Urban
Affairs,
U.S. House
of
Representatives,
February 5, 1981.
encourage the offering of cash discounts, the
Congress has repeatedly considered the discount-surcharge issue. Testimony has been delivered at length. The Federal Reserve, meanwhile, has carefully constructed regulations to
carry out the statutory provisions regarding
availability and notice to consumers of discounts. Despite these congressional and regulatory efforts, what we have not seen is merchants
offering discounts—at least not to any appreciable degree. If we believe that encouraging merchants to reward cash buyers is a goal worthy of
diligent pursuit, then we must try to identify the
impediments that have, in fact, discouraged the
concept.
Our guess is that the current 5 percent limit on
the size of the discount is not the culprit. Rather,
it may, once again, be a case of government
regulation creating part of the problem—regulation that is grounded on a set of well-intentioned
arguments but that introduces such friction into
otherwise simple transactions that compliance is
simply not worth the merchant's risk or effort.
If this analysis is correct, two features in the
current regulation are probably most important
in discouraging the development of cash-paying
incentive plans. First is the obvious difficulty in
drawing a clear economic distinction between a
permitted discount and a prohibited surcharge. It
is true that discounts and surcharges may not be
I am pleased to appear before you to present the
views of the Board of Governors on the proposed
"Cash Discount Act." Unlike the current law,
the proposal provides that a discount—in whatever amount—which is offered by a seller to a
customer to induce payment by cash, by check,
or by means other than an open-end credit plan
or credit card, is not a disclosable finance charge
under the Truth in Lending Act. The bill would
also extend the current ban on the imposition of a
credit-card surcharge for another two years.
The Board has testified previously in favor of
omitting these discounts from the finance charge
as a way of encouraging them, and I do so again
this morning. Also, as I have done previously, I
must express the Board's uncertainty about the
wisdom of prohibiting surcharges in view of their
economic similarity to discounts. Their permissibility might in fact help assure that cash customers are not forced to subsidize credit-card users.
In our view, it is time to take a fresh look at the
cash discount issue. During the six years since
the Truth in Lending Act was first amended to
144
Federal Reserve Bulletin • February 1981
as identical in practice as, say, a half-empty glass
of water is to a half-full one. Nevertheless, it is
difficult to quarrel with the fact that the distinction is, at best, uncertain.
Second, the well-intentioned protections in the
statute to insure equitable treatment of consumers have, once again, led to seemingly complicated regulatory provisions. The current statute and
the proposed bill specify that any discount must
be offered to "all prospective buyers." Its availability must be disclosed to all of them "clearly
and conspicuously in accordance with regulations of the Board." But who are "all prospective buyers"? Those who present credit cards, or
all those who enter the merchant's door? What
signs meet the test of "clear and conspicuous"
disclosure when there are several store entrances
and numerous independent cash registers? How
do you disclose to customers who purchase by
phone? May the discount be limited to certain
types of property or to certain branches of
stores? We have sought to provide answers to
these questions in our regulations.
Unfortunately, by issuing rules beyond the
basic provision we have again probably made
simple things so complicated that the public
throws up its hands in frustration. Although in
our current proposals to simplify Regulation Z
we have proposed trimming back these regulations, the obvious way for any merchant to avoid
regulatory burden is simply not to offer discounts. And that, apparently, is what has happened.
I therefore would recommend for subcommittee consideration a very simple rule: that onetime discounts or surcharges offered by the seller
for the purpose of inducing payment by cash,
checks, or means other than use of an open-end
credit plan or a credit card shall not constitute a
finance charge and that the availability of the
discount or surcharge be disclosed to customers.
This would leave out the specific requirement
that "all" customers be notified and that any
disclosure be "clear and conspicuous"—not, of
course, because we favor hidden plans but because of the uncertainties this standard produces
with the inevitable need for clarification.
Of course, it is possible that authorizing discounts and surcharges without calling them finance charges opens up a potential loophole in
the blanket embrace of Truth in Lending. Not
only are discounts essentially equivalent to surcharges, but both are essentially equivalent to
finance charges. They do represent a cost of
using credit.
Therefore, if we are right that the 5 percent
limit has not itself been the impediment to merchants offering discounts, this limit might be
retained to insure that the exclusion of discounts
and surcharges does not become a vehicle that
could be used to defeat the basic Truth in Lending protections. In our view, the best chance of
accomplishing the goals the Congress began pursuing six years ago would be to retain this limit,
but to allow discounts and surcharges to be used
with minimal government interference.
•
145
Announcements
PROPOSED
ACTION
The Federal Reserve Board on February 3, 1981,
requested public comment, through April 15, on
a revision and simplification of its Regulation C
(Home Mortgage Disclosure).
REPORT FORMS FOR FOREIGN
BANKS
The Federal Reserve Board has adopted forms to
be filed by foreign organizations that conduct a
banking business in the United States in order to
meet supervisory and regulatory requirements
under the Bank Holding Company Act and the
International Banking Act of 1978.
The forms [annual report of foreign banking
organizations (FR Y-7) and confidential report of
operations (FR 2068)] are designed in part to
implement the Board's national treatment concept of supervision of foreign banking organizations by requiring financial reporting substantially equivalent to that required of domestic
banking organizations.
The reports require submission of financial
statements, which will in part be open to public
inspection and in part be held confidential. These
reports of foreign banking organizations include
financial statements as prepared for use in the
home country; discussion of the accounting practices used in preparing such statements; financial
statements concerning material, majority-owned
unconsolidated foreign companies; financial
statements concerning all related U.S. companies 25 percent or more owned by the foreign
banking organization; disclosure of reserves, of
earnings, and of loan loss experience; description of U.S. activities and U.S. investments
adequate for use in determining compliance with
the Bank Holding Company Act and the International Banking Act as well as information on
shareholders, directors, and executive officers of
affected banking institutions.
For organizations with fiscal years ending between October 1980 and February 1981, the first
reports are to be filed by June 30, 1981. All other
foreign banking organizations shall file the reports within four months of the end of their fiscal
years.
The annual report of foreign banking organizations (FR Y-7), like the previous version, will be
open to public inspection. The foreign banking
organization confidential report of operations
(FR 2068) will be confidential.
The Board also has adopted another form, the
report of intercompany transactions for foreign
banking organizations and their U.S. bank subsidiaries (FR Y-8f), which will be confidential.
The FR Y-8f is intended to monitor the effects of
intercompany transactions on the safety and
soundness of a U.S. subsidiary bank that is
owned by a foreign banking organization. It
parallels the report for domestic banking companies (FR Y-8) and is to be filed quarterly beginning with the second quarter of 1981.
The forms and instructions may be obtained
upon request from the Federal Reserve Board or
from the Federal Reserve Banks.
REGULATION K:
INTERPRETATION
The Federal Reserve Board on January 19, 1981,
adopted an interpretation of its Regulation K
(International Banking Operations) dealing with
investments by a U.S. banking organization in a
foreign company (including a foreign bank) that
does business in the United States.
The interpretation applies to investments of
U.S. Edge corporations, member banks, and
bank holding companies. The interpretation permits them to invest—with the prior consent of
the Board—in foreign companies that conduct
domestic as well as international business in the
United States. Previously, such investments
could be made only if the business of the foreign
146
Federal Reserve Bulletin • February 1981
company in the United States was exclusively
international.
The Board said it would normally grant permission for such investments if (1) the foreign
company's business is conducted predominantly
abroad, (2) the activities in the United States of
the foreign company are banking or closely related to banking, and (3) the U.S. banking organization does not own 25 percent or more of the
foreign company's voting stock or does not otherwise control it.
FEDERAL RESERVE
REGULATORY SERVICE
The Federal Reserve Board has announced that
it will begin publication of the first part of a new
looseleaf service that will include all Board regulations and related interpretations and documents.
The new service, entitled the "Federal Reserve Regulatory Service," will consist of four
publications—a complete service covering all
Board regulations and related materials, and
three separate handbooks pertaining to securities
credit, consumer affairs, and monetary policy.
These publications are designed to help those
who must refer frequently to the Board's regulatory materials. They will be updated at least on a
monthly basis and each will be cross-indexed.
The first handbook—the Securities Credit
Transactions Handbook—is scheduled for publication in February. It will contain Regulations G,
T, U, and X dealing with extensions of credit for
the purchase of securities, together with all related statutes, Board interpretations, rulings, and
staff opinions.
This publication will be followed in March by a
similar handbook on Monetary Policy and Reserve Requirements, containing Regulations A,
D, and Q, plus related materials. It will, for
convenient reference, also contain the rules of
the Depository Institutions Deregulation Committee.
The Consumer and Community Affairs Handbook, containing Regulations B, C, D, E, Z, AA,
BB, and associated documents, and the complete
service, containing all Board regulations and
related materials, are planned for publication in
June.
ENFORCEMENT OF
ERISA
The Federal Reserve Board has adopted procedures for bringing to the attention of the Department of Labor possible significant violations by
state member banks of the Employee Retirement
Income Security Act (ERISA).
The Board acted upon a recommendation to
federal supervisors of financial institutions by the
Federal Financial Institutions Examination
Council.
ERISA provides that the Secretary of Labor
may use the facilities of other agencies, with
their consent, to help discharge the Department's responsibilities under the act and directs
the agencies to cooperate with the Secretary to
the extent permitted by law.
CHANGES IN BOARD
STAFF
The Board of Governors has announced the
following official staff actions.
Theodore E. Allison, the Secretary of the
Board, has been promoted to Staff Director for
Federal Reserve Bank Activities, effective January 19, 1981.
Clyde H. Farnsworth, Jr., Deputy Director,
has been named Director of the Division of
Federal Reserve Bank Operations, effective January 19, 1981.
Jared J. Enzler, Deputy Associate Director,
has been promoted to Senior Deputy Associate
Director, Division of Research and Statistics,
effective January 12, 1981.
J. Virgil Mattingly, Jr., Assistant General
Counsel, has been promoted to Associate General Counsel, Legal Division, effective February 4,
1981.
Gilbert T. Schwartz, Assistant General Counsel, has been made Associate General Counsel,
Legal Division, effective February 4, 1981.
Michael E. Bleier, Senior Counsel, has been
appointed Assistant General Counsel, Legal Division, effective February 4, 1981. Mr. Bleier,
who joined the Board's staff in 1971, holds a J.D.
from Georgetown University.
Maryellen A. Brown, Senior Counsel, has
been named Assistant to the General Counsel,
Legal Division, effective February 4, 1981. Ms.
Brown joined the Board's staff in 1974. She holds
Announcements
J.D. and L.L.M. degrees from the University of
Wisconsin.
Joe M. Cleaver, Chief, Financial Structure
Section, has been appointed Assistant Director,
Division of Research and Statistics, effective
January 12, 1981. Mr. Cleaver holds an M.A.
from the University of Maryland. He joined the
Board's staff in 1967.
Anthony F. Cole, Senior Attorney in the Legal
Division, has been appointed Special Assistant
to the Board for Congressional Liaison, effective
February 4, 1981. Mr. Cole holds an A.B. from
the College of William and Mary, an M.A. from
Rutgers University, and a J.D. from the College
of William and Mary, Marshall-Wythe School of
Law.
Cornelius K. Hurley, Jr., Senior Counsel, has
been appointed Assistant General Counsel, Legal Division, effective February 4, 1981. Mr.
Hurley received a J.D. from Georgetown University before coming to the Board in 1974.
Donald L. Kohn, Chief, Capital Markets Section, has been appointed Deputy Associate Director, Division of Research and Statistics, effective January 12, 1981. Mr. Kohn holds a Ph.D.
from the University of Michigan and was with
the Federal Reserve Bank of Kansas City before
joining the Board's staff in 1975.
David E. Lindsey, Chief, Banking Section, has
been named Assistant Director, Division of Research and Statistics, effective January 12, 1981.
Mr. Lindsey has been a member of the Board's
staff since 1974. He holds a B.A. degree from
Earlham College and a Ph.D from the University
of Chicago.
William Robert Maloni, Director, Congressional Relations Office, Federal Home Loan
Bank Board, has been named Special Assistant
to the Board for Congressional Liaison, effective
February 4, 1981. Mr. Maloni holds a B.A. from
Duquesne University and has taken graduate
courses at George Washington University and
the University of Maryland.
Lawrence Slifman, Chief, National Income
Section, has been appointed Assistant Director,
Division of Research and Statistics, effective
January 12, 1981. Mr. Slifman came to the Board
in 1970 after earning his Ph.D. from Washington
University in St. Louis.
James L. Stull has been made Manager of the
Operations Review Program in the Office of
147
Board Members, effective January 25, 1981. Mr.
Stull received a B.S. from the University of
Maryland. Since coming to the Board in August
1970, he has served in the Division of Federal
Reserve Bank Operations.
The Board has also announced the resignations of John J. Mingo, Senior Deputy Associate
Director, Division of Research and Statistics,
and Jeffrey R. Shafer, Deputy Associate Director, Division of International Finance.
ENFORCEMENT PROCEEDINGS
SETTLEMENT
The Federal Reserve Board announced on February 9, 1981, the payment of $50,000 each by
Mid America Bancorporation, Inc., and Irwin L.
Jacobs, both of Minneapolis, Minnesota, in settlement of enforcement proceedings instituted
against them by the Board.
In October 1980, the Board issued notices of
charges and notices of assessment of civil money
penalty against Mid America, a multibank holding company, and Mr. Jacobs, a Minneapolis
businessman. The notices were issued in connection with charges of submitting false or misleading information to the Board with respect to a
stock redemption transaction undertaken in
April 1980 and with actions inconsistent with
commitments made to the Board.
The Board alleged in the notices that during
the course of a redemption of shares by Mid
America—as a result of which Mr. Jacobs would
obtain control of the bank holding company
—Mid America and Mr. Jacobs submitted false
or misleading information to the Board to induce
the Board to withhold formal supervisory proceedings that would have blocked the stock
redemption transaction. The Board charged that
Mid America and Mr. Jacobs (1) made commitments to the Board that they later purposefully
invalidated; and (2) made statements to the
Board that were misleading and, through misstatements and omissions, failed to describe adequately the true and complete purpose of the
stock redemption transaction, which was the
liquidation of the bank holding company.
The Board's notices said that the material
omissions and misleading statements, and the
invalidation of the commitments, constituted un-
148
Federal Reserve Bulletin • February 1981
safe or unsound practices in the conduct of the
affairs of Mid America Bancorporation, Inc., and
violated the Board's Regulation Y (which implements the Bank Holding Company Act).
To prevent the liquidation of Mid America
prior to the completion of the administrative
proceedings started by the notices of charges,
the Board issued a temporary cease-and-desist
order prohibiting Mid America's sales of its
subsidiary banks and Mr. Jacobs' sale of one
bank that he had committed to transfer to Mid
America. Mid America and Mr. Jacobs filed a
lawsuit in the U.S. District Court of Minnesota
to overturn the temporary cease-and-desist order
and, in addition, to enjoin the Board's cease-anddesist and civil-money-penalty assessment proceedings. The U.S. District Court of Minnesota
dismissed this lawsuit on December 18, 1980.
The Court held that it was without jurisdiction to
interfere with the ongoing administrative ceaseand-desist and penalty proceedings, and that the
Board acted within its authority in issuing the
temporary cease-and-desist order to prevent the
serious weakening of the condition of the bank
holding company and to maintain the status quo
pending the completion of the administrative
proceedings.
To settle the proceedings instituted against
them, Mid America and Mr. Jacobs, without
admitting liability, paid a penalty of $50,000
each, which has been turned over by the Board
to the U.S. Treasury. In addition, Mr. Jacobs
agreed not to purchase more than 10 percent of
any shares of any bank or bank holding company
for the next five years, without prior approval of
the Federal Reserve Board.
The Board's proceedings against Mid America
and Mr. Jacobs did not involve, in any manner,
the activities of Mid America's seven subsidiary
banks, whose conditions are all reported to be
satisfactory by their primary federal and state
supervisory agencies.
SYSTEM MEMBERSHIP:
ADMISSION OF STATE BANKS
The following banks were admitted to membership in the Federal Reserve System during the
period December 11, 1980, through February 10,
1981:
California
Torrance
Pacific Heritage Bank
Colorado
Louisville
Louisville State Bank
Oregon
Forest Grove . . . Farmers and Merchants Bank
Newport
Yaquina Bay Bank
Utah
Salt Lake City
Guardian State Bank
. . . Rocky Mountain State Bank
Virginia
Hillsville
Bank of Carroll
Urbana
Bank of Middlesex
Wyoming
Laramie
Citizens Bank
Wheatland
American Bank of
Wheatland
Worland
First Wyoming BankWorland
Wright
First Wyoming Bank-Wright
149
Record of Policy Actions of the
Federal Open Market Committee
Meeting Held
on December 18-19, 1980
1. Domestic Policy Directive
The information reviewed at this
meeting suggested that real GNP expanded more in the fourth quarter
than in the third. Average prices as
measured by the fixed-weight price
index for gross domestic business
product were continuing to rise at a
rapid pace, close to the average annual rate of about \0l/2 percent recorded in the first three quarters of
the year.
The dollar value of retail sales
rose substantially further in November, according to the advance report, after a large increase over the
five preceding months. Sales of new
automobiles were at an annual rate
of 9.1 million units in November,
marginally above the October rate.
A brisk selling pace of foreign cars
sustained total unit sales as sales of
domestic autos edged down.
The index of industrial production
rose an estimated 1.4 percent in November, following substantial gains
in each of the three preceding
months. Capacity utilization in manufacturing increased about 1 percentage point further in November
to 78.8 percent, 3.9 percentage
points above its July trough but well
below earlier peaks.
Nonfarm payroll employment expanded substantially in November
for the fourth consecutive month,
and the unemployment rate was essentially unchanged at lx/2 percent.
Employment gains were widespread, and the average workweek in
manufacturing lengthened slightly.
In November private housing
starts remained at the annual rate of
about l l / 2 million units recorded in
September and October. Sales of
new homes edged off slightly further
in October, and sales of existing
houses declined for the first time
since May.
Producer prices of finished goods
rose appreciably in October and November, but the rate of increase over
the two months was considerably
below the exceptional pace in the
third quarter. In October consumer
prices continued to rise rapidly;
average prices of energy items fell,
but mortgage interest rates rose
sharply after having declined over
the preceding three months. The rise
in the index of average hourly earnings of private nonfarm production
workers accelerated sharply in October and November; over the first
eleven months of the year the index
rose at an annual rate of about 9V2
percent, compared with an increase
of about 8V4 percent during 1979.
In foreign exchange markets the
trade-weighted value of the dollar
against major foreign currencies had
risen about lx/2 percent over the interval since the Committee's meeting in mid-November. The U.S. foreign trade deficit in October was
essentially unchanged from the August-September level, which was
well below the rate in the first half of
the year. The volume and value of
oil imports were up somewhat in
October from the sharply reduced
levels of the third quarter, while the
value of non-oil imports was little
changed. Total exports in October
also were close to the third-quarter
level.
At its meeting on November 18,
the Committee had decided that
150
Federal Reserve Bulletin • February 1981
open market operations in the period
until this meeting should be directed
toward expansion of reserve aggregates consistent with growth of
M-1A, M-1B, and M-2 over the period from September to December at
annual rates of about 2L/2 percent, 5
percent, and 73/4 percent respectively, or somewhat less, provided that
in the period before the next regular
meeting the weekly average federal
funds rate remained within a range
of 13 to 17 percent. Shortly after the
November 18 meeting, incoming
data indicated that the monetary aggregates were growing considerably
faster than the rates consistent with
the Committee's objectives for the
September-to-December period. Required reserves and member bank
demands for reserves expanded substantially in relation to the constrained supply of reserves being
made available through open market
operations. These developments
were associated with additional upward pressures on the federal funds
rate and other short-term interest
rates; in the first statement week
after the meeting, the funds rate was
at about or somewhat above the upper limit of the range of 13 to 17
percent specified by the Committee,
compared with an average of 14^2
percent in mid-November. In a telephone conference on November 26,
the Committee raised the upper limit
of the intermeeting range for the
funds rate to 18 percent.
On December 4 the Board of Governors announced an increase from
12 to 13 percent in basic discount
rates at Federal Reserve Banks and
an increase from 2 to 3 percentage
points in the surcharge on frequent
borrowings of large institutions,
effective December 5. This action
exerted additional upward pressure
on the federal funds rate; in trading
during the morning of December 5,
the rate generally was well above 18
percent. At the same time, incoming
data suggested that M-1A and M-1B
currently might be growing a little
less rapidly than projected a week
earlier, which would imply some re
duction in member bank demands
for reserves in relation to the supply
being made available through open
market operations.
In light of uncertainties about the
duration and extent of upward pressure on the federal funds rate while
markets were adjusting to the discount rate action, the Committee
decided in the afternoon of December 5 to provide the Manager for
Domestic Operations leeway to pursue the short-run objectives for the
reserve aggregates without operations being precisely constrained in
the current statement week by the 18
percent upper limit of the intermeeting range for the federal funds rate.
On December 12 the Committee decided to extend this leeway for operations through the period before the
meeting. In the statement weeks of
December 10 and 17 the funds rate
averaged 18.8 percent and 19.8 percent. Member bank borrowings receded to an average of about $1.6
billion in the two statement weeks
ending December 17 from an average of about $2.2 billion in the preceding two statement weeks.
Growth in M-1A and M-1B moderated further in November to annual
rates of about 7 percent and 91/4
percent respectively, but these
growth rates were still well above
those consistent with the Committee's objectives for the period from
September to December. In early
December growth in both measures
of money slowed substantially further. Expansion in M-2 and M-3 continued to accelerate in November,
reflecting a surge in both small- and
large-denomination time deposits.
From the fourth quarter of 1979
through November, growth of M-1A
was in the upper part of the range set
by the Committee for the year ending in the fourth quarter of 1980;
M-1B and M-2 grew at rates somewhat above the upper limits of their
ranges, while M-3 grew at a rate
slightly above the upper limit of its
range.
Total credit outstanding at U.S.
commercial banks continued to ex-
Record of Policy Actions of the FOMC
pand in November at about the rapid
pace of the previous three months.
Growth in business loans remained
especially vigorous, but expansion
in other bank loans was also sizable
and banks added further to their
holdings of securities. Outstanding
commercial paper of nonfinancial
corporations continued to fall in November, extending the decline that
had begun in August.
Pressures on bank reserve positions and strong business demands
for credit, along with large Treasury
financings, were associated with
sharp further increases in short-term
interest rates over the intermeeting
period. Rate increases were especially pronounced for bank CDs and
commercial paper, which rose 3 to 6
percentage points, while Treasury
bill rates advanced 1 to 3 percentage
points. Most long-term bond yields
moved up about V2 to 1 percentage
point over the interval. The prime
rate charged by commercial banks
on short-term business loans was
raised from 16V4 percent to a new
high of 21 percent. In home mortgage markets, average rates on new
commitments for fixed-rate loans
rose more than V2 percentage point
further, and new commitment activity was reported to be quite limited
at prevailing rates.
The staff projections presented at
this meeting suggested that the accelerated growth of real GNP in the
current quarter was likely to be followed by some decline in the first
part of 1981 and by sluggish recovery later in the year. Accordingly,
the unemployment rate was expected to increase during 1981. The rise
in the fixed-weight price index for
gross domestic business product was
projected to remain rapid, although
not quite so rapid in the second half
of the year as in the first half.
In the Committee's discussion of
the economic situation and its implications for policy, the members noted the clear possibility of a decline in
activity in the early part of the new
year and of a sluggish performance
over 1981 as a whole, although some
members expressed the view that
underlying expansive forces were
strong. It was observed that the statistical indicators of prospective activity had not been signaling a nearterm contraction, but that the
greater-than-anticipated expansion
in GNP in the current quarter had
itself contributed to developments,
including the sharp rise in interest
rates, that were likely to produce
some decline in the early part of
1981. Later in the year, assuming
monetary expansion to be consistent
with the Committee's longer-run objectives, the recovery was likely to
be limited unless progress was made
in reducing inflation. The need to
deal with the deep-seated problem of
inflation was emphasized, as was the
difficulty of doing so without accepting risks of unsatisfactory economic
performance in the short run. It was
generally recognized that the course
of economic activity remained difficult to forecast because of the unpredictability of behavior based on inflationary expectations and because
of uncertainties about the fiscal and
other economic policies of the new
administration to be inaugurated on
January 20.
At its meeting in July 1980, the
Committee had reaffirmed the following ranges for monetary growth
from the fourth quarter of 1979 to the
fourth quarter of 1980 that it had
established in February: M-1A, 3l/2
to 6 percent; M-1B, 4 to 6l/2 percent;
M-2, 6 to 9 percent; and M-3, 6l/2 to
9l/2 percent. The associated range
for the rate of growth in commercial
bank credit was 6 to 9 percent. For
the period from the fourth quarter of
1980 to the fourth quarter of 1981,
the Committee had looked toward a
reduction in the ranges for growth of
M-1A, M-1B, and M-2 on the order
of V2 percentage point from the
ranges adopted for 1980, abstracting
from institutional influences affecting the behavior of the aggregates.
During the course of 1980, an inconsistency had become apparent between the longer-run ranges for
M-1A and M-IB as a result of faster-
151
152
Federal Reserve Bulletin • February 1981
than-expected growth of ATS and
NOW accounts, which had been at
the expense partly of demand deposits and partly of savings deposits and
other instruments not included in the
narrowly defined aggregates. In that
light, the specified range for growth
of M-1B in 1980 should have been
somewhat higher than that actually
adopted, while the range for M-1A
should have been somewhat lower,
consistent with the intended economic result.
At this meeting the Committee began a review of the ranges for 1981 in
the expectation that at the meeting
scheduled for early February it
would complete the review and establish ranges for the year within the
framework of the Full Employment
and Balanced Growth Act of 1978
(the Humphrey-Hawkins Act). The
Committee once again faced unusual
uncertainties concerning the forces
affecting monetary growth, in part
because of some sizable variations
evident in the demand for both narrowly and broadly defined money in
relation to nominal GNP during
1980. For the year ahead, moreover,
the institutional changes expected to
result from the Monetary Control
Act of 1980 would need to be evaluated and interpreted. Relationships
among the monetary aggregates will
be affected by the introduction of
NOW accounts on a nationwide basis as of December 31, 1980, as authorized by the act. A staff analysis
suggested that during 1981 shifts of
funds from demand deposits into
NOW accounts would be substantial
and would significantly retard the
growth of M-1A. At the same time,
transfers from savings deposits and
other interest-bearing assets into
NOW accounts would enhance the
growth of M-1B. However, estimates of such shifts varied within
wide ranges. Shifts of funds into
NOW accounts were not expected to
affect growth of M-2 significantly
because virtually all of the funds
likely to be shifted into such accounts are included in M-2.
In the Committee's discussion of
policy for the near term, the members considered rates of monetary
growth over the first three months of
1981 against the background of the
tentative ranges specified earlier for
growth over the year as a whole,
pending the completion of the review of those ranges scheduled for
the meeting in early February. The
midpoints of the tentative ranges for
1981, abstracting from the effects of
the introduction of NOW accounts
on a nationwide basis, were 4l/4 percent for M-1A, 43/4 percent for
M-1B, and 7 percent for M-2. It was
considered likely that the substantial
weakening of the demand for cash
balances evident in recent weeks
would persist for a time, in response
to the sharp increase in interest rates
over the past few months and to the
slackening of economic activity projected for the months ahead; but
growth of M-2 was expected to be
greater in relation to growth of the
narrowly defined aggregates than
suggested by the tentative ranges for
1981.
Most of the members favored
specification of monetary growth
rates for the first quarter that were
consistent with the tentative ranges
for growth over the full year ahead.
In view of the excessively rapid
monetary growth in recent months,
they were willing to accept a shortfall from those rates for a time, provided that the shortfall developed
concurrently with some abatement
of pressures in the money market.
However, one member favored
specification of higher rates of monetary growth for the first quarter,
and another member favored specification of lower rates.
A number of members continued
to express concern about the economic and financial effects of the
high degree of variability of interest
rates in 1980. In the light of the
current prospects for economic activity and for the demand for money,
these members wished to set a policy course for the near term that
would tend both to avoid additional
pressures in the money market and
Record of Policy Actions of the FOMC
to moderate the expected easing of
pressures. While the Committee's
general practice had been to relax
the constraint implied by the intermeeting range for the federal funds
rate when the constraint became
binding, some members felt that a
somewhat narrower range than
specified for most recent intermeeting periods might be appropriate to
provide an opportunity for review of
the situation if market interest rates
changed by a sizable amount. It was
also suggested that the Committee
hold a consultation before the next
scheduled meeting if it appeared that
the rate might decline quickly toward the lower end of the range. One
member expressed the opinion that
setting 18 percent as the upper end
of the range, which would lead to a
prompt easing in money market conditions consistent with a decline in
the funds rate to or below that level,
would contribute over time to a reduction in the volatility of both interest rates and monetary growth.
At the conclusion of the discussion, the Committee decided to seek
behavior of reserve aggregates associated with growth of M-1A, M-1B,
and M-2 over the first quarter along
a path consistent with the ranges for
growth in 1981 contemplated in July
1980, abstracting from the effects of
deposit shifts connected with the introduction of NOW accounts on a
nationwide basis. The members recognized that the spread of NOW
accounts and ATS accounts nationally was likely to widen the differential between growth of M-1A and
M-1B to an unpredictable extent and
that operational paths for reserves
would have to be adjusted in the
light of the developing differential.
Some shortfall in growth would be
acceptable in the near term if that
developed in the context of reduced
pressures in the money market. If it
appeared during the period before
the next regular meeting that fluctuations in the federal funds rate, taken over a period of time, within a
range of 15 to 20 percent were likely
to be inconsistent with the monetary
and related reserve paths, the Manager for Domestic Operations was
promptly to notify the Chairman,
who would then decide whether the
situation called for supplementary
instructions from the Committee.
The following domestic policy directive was issued to the Federal
Reserve Bank of New York:
The information reviewed at this meeting suggests that real GNP expanded
more in the fourth quarter than in the
third, and prices on the average continued to rise rapidly. In November retail
sales, industrial production, and nonfarm payroll employment expanded substantially further, and the unemployment
rate was essentially unchanged at lV 2
percent. Housing starts remained at their
September-October level. The rise in the
index of average hourly earnings has
been somewhat more rapid this year than
in 1979.
The weighted average value of the
dollar in exchange markets has risen
considerably further over the past
month. The U.S. trade deficit was unchanged in October, remaining well below the rate in the first half.
Growth in M-1A and M-1B continued
to moderate in November but was still
relatively rapid; growth in M-2 continued
to accelerate, reflecting a further pickup
in expansion of its nontransaction component. In early December, growth of
M-1A and M-1B slowed substantially
further. From the fourth quarter of 1979
to November, growth of M-l A was in the
upper part of the range set by the Committee for growth over the year ending in
the fourth quarter of 1980; M-1B and M-2
grew at rates somewhat above the upper
limits of their respective ranges. Expansion in commercial bank credit was
about as rapid in November as on the
average in the preceding three months.
Short-term market interest rates have
risen sharply further in recent weeks.
Long-term market yields have also risen,
although considerably less, and average
rates on new home mortgage commitments have continued upward. On December 4 the Board of Governors announced an increase in Federal Reserve
discount rates from 12 to 13 percent and
an increase in the surcharge from 2 to 3
percentage points on frequent borrowing
of large institutions.
The Federal Open Market Committee
seeks to foster monetary and financial
conditions that will help to reduce inflation, encourage economic recovery, and
contribute to a sustainable pattern of
international transactions. At its meeting
in July, the Committee agreed that these
objectives would be furthered by growth
153
154
Federal Reserve Bulletin • February 1981
of M-1A, M-1B, M-2, and M-3 from the
fourth quarter of 1979 to the fourth quarter of 1980 within ranges of 3l/2 to 6
percent, 4 to 6V2 percent, 6 to 9 percent,
and 6V2 to 9l/2 percent respectively. The
associated range for bank credit was 6 to
9 percent. For the period from the fourth
quarter of 1980 to the fourth quarter of
1981, the Committee looked toward a
reduction in the ranges for growth of
M-1A, M-1B, and M-2 on the order of V2
percentage point from the ranges adopted for 1980, abstracting from institutional influences affecting the behavior of the
aggregates.
In the short-run the Committee seeks
behavior of reserve aggregates associated with growth of M-1A, M-1B, and M-2
over the first quarter along a path consistent with the ranges for growth in 1981
contemplated earlier, which will be reviewed in February 1981. Those ranges,
abstracting from the effects of deposit
shifts connected with the introduction of
NOW accounts on a nationwide basis,
imply growth in these aggregates centered on 4% percent, 43/4 percent, and 7
percent respectively. It is recognized
that the introduction of NOW and ATS
accounts nationwide at the beginning of
1981 is likely to widen the discrepancy
between growth in M-1A and M-1B to an
extent that cannot now be accurately
estimated, and operational reserve paths
will be developed in the light of evaluation of those differences as they emerge.
In the light of the rapid growth of monetary and credit aggregates in recent
months, some shortfall in growth would
be acceptable in the near term if that
developed in the context of reduced
pressures in the money market. If it
appears during the period before the next
meeting that fluctuations in the federal
funds rate, taken over a period of time,
within a range of 15 to 20 percent are
likely to be inconsistent with the monetary and related reserve paths, the Manager for Domestic Operations is promptly to notify the Chairman, who will then
decide whether the situation calls for
supplementary instructions from the
Committee.
Votes for this action: Messrs.
Volcker, Gramley, Guffey, Morris,
Partee, Rice, Roos, Schultz, Solomon, and Winn. Votes against this
action: Mrs. Teeters and Mr. Wallich.
Mrs. Teeters dissented from this
action because she believed that the
objectives for monetary growth were
unduly restrictive in terms of their
eventual effects on output and employment without improving prospects for significantly tempering the
rate of inflation. Pending completion
of the Committee's review of its
ranges for growth in 1981, she preferred specification of moderately
higher rates for monetary growth
over the first quarter.
Mr. Wallich dissented from this
action because, given the excessive
monetary expansion in recent
months, he favored specification of
lower monetary growth rates for the
first quarter of 1981 than those
adopted at this meeting along with a
higher intermeeting range for the
federal funds rate. In his view, such
a policy stance was appropriate both
to restrain monetary growth if economic activity remained strong and
to moderate the probable decline in
interest rates if economic activity
weakened.
2. Authorization for Domestic
Open Market Operations
On January 23, 1981, the Committee
voted to increase from $3 billion to
$4 billion the limit on changes between Committee meetings in System Account holdings of U.S. government
and
federal
agency
securities specified in paragraph 1(a)
of the authorization for domestic
open market operations, effective
immediately, for the period ending
with the close of business on February 3, 1981.
Votes for this action: Messrs.
Volcker, Gramley, Guflfey, Morris,
Partee, Rice, Roos, Schultz, Solomon, Mrs. Teeters, Messrs. Wallich,
and Winn.
This action was taken on recommendation of the Manager for Domestic Operations. The Manager
had advised that since the December
meeting, substantial net sales of securities had been undertaken to absorb reserves in association with a
seasonal reduction in currency and
deposits. The leeway for further
sales had been reduced to about $1
billion, and additional sales in excess
of that amount might be required
over the rest of the intermeeting
interval.
155
Legal Developments
AMENDMENT
TO REGULATION
E
The Board of Governors has amended its Regulation
E, Electronic Fund Transfers: to exempt overdraft
credit plans from § 913(1) of the Act. That section
prohibits a creditor from conditioning an extension of
credit on repayment by means of preauthorized debits.
The amendment creates an exception for overdraft
credit plans, which have historically included an automatic payment feature.
Effective January 15, 1981, Regulation E is amended
as follows:
Section 205.3 is amended by redesignating footnote
1 as footnote lb and by revising § 205.3(d)(2) and (3) to
read as follows:
Section 205.3—Exemptions
(d) Certain automatic transfers.***
(2) Into a consumer's account by the financial institution, such as the crediting of interest to a savings
account ; l a
(3) From a consumer's account to an account of the
financial institution, such as a loan payment; la or
AMENDMENTS
TO REGULATION
F
The Board of Governors has amended its Regulation
F, Securities of Member State Banks consistent with
recent amendments to regulations of the Securities and
Exchange Commission ("SEC"), concerning (a) Safe
Harbor from Liability for Projections, (b) Corporate
Governance, (c) Dividend Reinvestment Plans, and (d)
Tender Offers. The Board has also issued an interpretation relating to (a) Issuer Tender Offers and (b)
Going Private Transactions. Finally, the Board has
adopted certain technical amendments to Regulation
F.
l.a The financial institution remains subject to § 913 of the Act
regarding compulsory use of electronic fund transfers. A financial
institution may, however, require the automatic repayment of credit
that is extended under an overdraft credit plan or that is extended to
maintain a specified minimum balance in the consumer's account.
Financial institutions also remain subject to §§ 915 and 916 regarding
civil and criminal liability.
1. Section 206.3 of Regulation F is amended by revising the title of the section and by adding paragraph (d)
to read as follows:
Section 206.3—Inspection and Publication of
Information and Safe Harbor from Liability for
Forward-Looking Statements Filed under the
Act.
sfs
sfc
s§:
5{:
sf
(d) Safe harbor from liability for
forward-looking
statements.
(1) A statement within the coverage of paragraph
(d)(2) of this section which is made by or on behalf
of a bank filing any statement, report, or document
under the Act or by an outside reviewer retained by
the bank shall be deemed not to be a fraudulent
statement (as defined in paragraph (d)(4) of this
section), unless it is shown that such statement was
made or reaffirmed without a reasonable basis or
was disclosed other than in good faith.
(2) Paragraph (d)(1) of this section applies to (i) a
forward-looking statement (as defined in paragraph
(d)(3) of this section) made in a document filed with
the Board or in an annual report to shareholders
meeting the requirements of § 206.5(c) of Regulation
F (12 CFR 206.5)(c)); (ii) a statement reaffirming the
forward-looking statement referred to in paragraph
(d)(2)(i) of this section subsequent to the date the
document was filed or the annual report was made
publicly available; or (iii) a forward-looking statement made prior to the date the document was filed
or the date the annual report was made publicly
available if such forward-looking statement is affirmed in a filed document or annual report made
publicly available within a reasonable time after the
making of such forward-looking statement.
(3) For the purpose of this subsection, the term
"forward-looking statement" shall mean and shall
be limited to:
(i) A statement containing a projection of revenues, income (loss), earnings (loss) per share,
capital expenditures, dividends, capital structure
or other financial items:
(ii) A statement of management's plans and objectives for future operations;
(iii) A statement of future economic performance
contained in management's discussion and analysis of the summary of earnings as called for by
156
Federal Reserve Bulletin •
February 1981
general instructions (g) and (h) to the Quarterly
Report on Form F-4; and
(iv) Disclosed statements of the assumptions underlying or relating to any of the statements
described in paragraph (d)(3)(i), (ii), or (iii) of this
section.
(4) For the purpose of this regulation the term
"fraudulent statement" shall mean a statement
which is an untrue statement of a material fact, a
statement false or misleading with respect to any
material fact, an omission to state a material fact
necessary to make a statement not misleading or
which constitutes the employment of a manipulative, deceptive, or fraudulent device, contrivance,
scheme, transaction, act, practice, course of business, or an artifice to defraud, as those terms are
used in the Securities Act of 1934 or the regulations
promulgated thereunder.
(5) Notwithstanding any of the provisions of paragraphs (d)(1) through (4) of this section, this rule
shall apply only to forward-looking statements made
by or on behalf of a bank, if, at the time such
statements are made or reaffirmed, the bank is
subject to the reporting requirements of the Securities Exchange Act of 1934 and has filed its most
recent annual report with the Board on Form F-2.
2. Section 206.5 is amended by adding paragraphs
(b)(5) and (e)(6) and revising paragraphs (d)(1) and (2);
g(l)(i), (ii); g(2), (ii), (iii); g(3); i(3)(i), (ii), (iii); (h); i and
(k) to read as follows:
Section 206.5—Proxy Statements and Other
Solicitations under Section 14 of the Act.
(a) Requirement of statement. N o solicitation of a
proxy with respect to a security of a bank registered
pursuant to section 12 of the Act shall be made unless
each person solicited is concurrently furnished, or has
previously been furnished, with a written proxy statement containing the information required by Form
F-5. If any bank having such a security outstanding
fails to solicit proxies from the holders of any such
security in such a manner as to require the furnishing
of such a proxy statement, such bank shall transmit to
all holders of record of such security a statement
containing the information required by Form F-5. The
"information statement" required by the preceding
sentence shall be transmitted (1) at least 20 calendar
days prior to any annual or other meeting of the
holders of such security at which such holders are
entitled to vote, or (2) in the case of corporate action
taken with the written authorization or consent of
security holders, at least 20 days prior to the earliest
date on which the corporate action may be taken. A
proxy statement or an "information statement" re-
quired by this paragraph is hereinafter sometimes
referred to as a "Statement".
(b) Exceptions. The requirements of this § 206.5 shall
not apply to the following:
(5) The furnishing of proxy voting advice by any
person (the "advisor") to any other person with
whom the advisor has a business relationship, if:
(i) The advisor renders financial advice in the
ordinary course of his business:
(ii) The advisor discloses to the recipient of the
advice any significant relationship with the bank
or any of its affiliates, or a shareholder proponent
of the matter on which advice is given, as well as
any material interest of the advisor in such matter:
(iii) The advisor receives no special commission
or remuneration for furnishing the proxy voting
advice from any person other than a recipient of
the advice and other persons who receive similar
advice under this subsection; and
(iv) The proxy voting advice is not furnished on
behalf of any person soliciting proxies or on
behalf of a participant in an election subject to the
provisions of § 206.5(i).
NOTE.—The solicitations excepted by paragraphs (b)(1) and (b)(5)
remain subject to the prohibitions against false and misleading statements in § 206.5(h).
(c) Annual report to security holders to accompany
Statements.
(1) Any Statement furnished on behalf of the bank
that relates to an annual meeting of security holders
at which directors are to be elected shall be accompanied or preceded by an annual report to such
security holders containing such financial statements for the last 2 fiscal years as will, in the opinion
of the bank, adequately reflect the financial position
of the bank at the end of each such year and the
results of its operations for each such year. The
financial statements included in the annual report
may omit details or summarize information if such
statements, considered as a whole in the light of
other information contained in the report and in the
light of the financial statements of the bank filed or
to be filed with the Board, will not by such procedure omit any material information necessary to a
fair presentation or to make the financial statements
not misleading under the circumstances. Subject to
the foregoing requirements with respect to financial
statements, the annual report to security holders
may be in any form deemed suitable by the bank and
the information required by paragraphs (c)(l)(i) to
(iv) of this paragraph may be presented in an appen-
Legal Developments
dix or other separate section of the report, provided
that the attention of security holders is called to
such presentation.
(2) Bank's Statement, or the report, shall contain an
undertaking in bold face or otherwise reasonably
prominent type to provide without charge to each
person solicited, on the written request of any such
person, a copy of the bank's annual report on Form
F-2 including the financial statements and the schedules thereto, required to be filed with the Board
pursuant to § 206.4 of this Part for the bank's most
recent fiscal year, and shall indicate the name and
address of the person to whom such a written
request is to be directed.
(3) Eight copies of each annual report sent to security holders pursuant to this paragraph (c) shall be
sent to the Board not later than (i) the date on which
such report is first sent or given to security holders,
or (ii) the date on which preliminary copies of the
bank Statement are filed with the Board pursuant to
paragraph (f), whichever date is later. Such annual
report is not deemed to be "soliciting material" or
to be "filed" with the Board or otherwise subject to
this § 206.5 or the liabilities of section 18 of the Act,
except to the extent that the bank specifically requests that it be treated as a part of the proxy
soliciting material or incorporates it in the proxy
statement by reference.
(d) Requirements as to proxy.
(1) the form of proxy (i) shall indicate in bold-face
type whether or not the proxy is solicited on behalf
of the bank's board of directors or, if provided other
than by a majority of the board of directors, shall
indicate in bold-face type the identity of the persons
on whose behalf the solicitation is made, (ii) shall
provide a specifically designated blank space for
dating the proxy, and (iii) shall identify clearly and
impartially each matter or group of related matters
intended to be acted upon whether proposed by the
bank or by security holders. N o reference need be
made, however, to matters as to which discretionary
authority is conferred under paragraph (d)(3) of this
section.
(2)(i) Means shall be provided in the form of proxy
whereby the person solicited is afforded an opportunity to specify by boxes a choice between
approval or disapproval of, or abstention with
respect to, each matter or group of related matters
referred to therein as intended to be acted upon,
other than elections to office. A proxy may confer
157
discretionary authority with respect to matters as
to which a choice is not so specified by the
security holder if the form of proxy states in boldfaced type how the shares represented by the
proxy are intended to be voted in each such case.
(ii) A form of proxy which provides for the election of directors shall set forth the names of
persons nominated for election as directors. Such
form of proxy shall clearly provide any of the
following means for security holders to withhold
authority to vote for each nominee:
(A) A box opposite the name of each nominee
which may be marked to indicate that authority
to vote for such nominee is withheld; or
(B) An instruction in bold-face type which indicates that the security holder may withhold
authority to vote for any nominee by lining
through or otherwise striking out the name of
any nominee; or
(C) Designated blank spaces in which the
shareholder may enter the names of nominees
with respect to whom the shareholder chooses
to withhold authority to vote; or
(D) Any other similar means, provided that
clear instructions are furnished indicating how
the shareholder may withhold authority to vote
for any nominee.
(iii) Such form of proxy also may provide a means
for the security holder to grant authority to vote
for the nominees set forth, as a group: Provided,
That there is a similar means for the security
holder to withhold authority to vote for such
group of nominees. Any such form of proxy which
is executed by the security holder in such manner
as not to withhold authority to vote for the
election of any nominee shall be deemed to grant
such authority: Provided, That the form of proxy
so states in bold-face type.
Instructions. 1. Paragraph (ii) does not apply in the case of a merger,
consolidation or other plan if the election of directors is an integral
part of the plan.
2. If applicable State law gives legal effect to votes cast against a
nominee, then in lieu of, or in addition to, providing a means for
security holders or withhold authority to vote, the bank should
provide a similar means for security holders to vote against each
nominee.
(e) ***
(6) All proxy statements shall disclose, under an
appropriate caption, the date by which proposals of
security holders intended to be presented at the next
annual meeting must be received by the bank for
inclusion in the bank's proxy statement and form of
proxy relating to that meeting, such date to be
calculated in accordance with the provisions of
§ 206.5(k)(iii)(A). If the date of the next annual
meeting is subsequently advanced by more than 30
158
Federal Reserve Bulletin •
February 1981
calendar days or delayed by more than 90 calendar
days from the date of the annual meeting to which
the proxy statement relates, the bank shall, in a
timely manner, inform security holders of such
change, and the date by which proposals of security
holders must be received, by any means reasonably
calculated to so inform them.
(g) Mailing communications for security holders. If
the bank has made or intends to make any proxy
solicitation subject to this § 206.5, the bank shall
perform such of the following acts as may be requested
in writing with respect to the same subject matter or
meeting by any security holder who is entitled to vote
on such matter or to vote at such meeting and who
shall first defray the reasonable expenses to be incurred by the bank in the performance of the act or
acts requested:
(1) The bank shall mail or otherwise furnish to such
security holder the following information as promptly as practicable after the receipt of such request:
(i) A statement of the approximate number of
holders of record of any class of securities, any of
the holders of which have been or are to be
solicited on behalf of the bank, or any group of
such holders that the security holder shall designate;
(ii) If the bank has made or intends to make,
through bankers, brokers, or other persons, any
solicitation of the beneficial owners of securities
of any class, a statement of the approximate
number of such beneficial owners, or any group of
such owners that the security holder shall designate;
(2)(i) ***
(ii) Any such material that is furnished by the
security holder shall be mailed with reasonable
promptness by the bank after receipt of a tender
of the material to be mailed, of envelopes or other
containers therefor, of postage or payment for
postage, and of evidence that such material has
been filed with the Board pursuant to paragraph
(f). The bank need not, however, mail any such
material that relates to any matter to be acted
upon at an annual meeting of security holders
prior to the earlier of (a) a day corresponding to
the first date on which the bank's proxy soliciting
material was released to security holders in connection with the last annual meeting of security
holders, or (b) the first day on which solicitation is
made on behalf of management. With respect to
any such material that relates to any matter to be
acted upon by security holders otherwise than at
an annual meeting, such material need not be
mailed prior to the first day on which solicitation
is made on behalf of the bank;
(iii) The bank shall be responsible for such proxy
statement, form of proxy, or other communication.
(3) In lieu of performing the acts specified above,
the bank may, at its option, furnish promptly to such
security holder a reasonably current list of the
names and addresses of such of the holders of
record specified in paragraph (g)(l)(i) of this section
as the security holder shall designate, and a list of
the names and addresses of the bankers, brokers, or
other persons specified in paragraph (g)(l)(ii) of this
section as the security holder shall designate together with a statement of the approximate number of
beneficial owners solicited or to be solicited through
each such banker, broker, or other person and a
schedule of the handling and mailing costs of each
such banker, broker, or other person, if such schedule has been supplied to the bank.
The foregoing information shall be furnished
promptly upon the request of the security holder or
at daily or other reasonable intervals as it becomes
available to the bank.
(h) False or misleading
statements.
(1) N o solicitation or communication subject to this
section shall be made by means of any Statement,
form of proxy, notice of meeting, or other communication, written or oral containing any statement
that, at the time and in the light of the circumstances
under which it is made, is false or misleading with
respect to any material fact, or that omits to state
any material fact necessary in order to make the
statements therein not false or misleading or necessary to correct any statement in any earlier communication with respect to the solicitation of a proxy
for the same meeting or subject matter that has
become false or misleading. Depending upon particular circumstances, the following may be misleading within the meaning of this paragraph: predictions as to specific future market values; material
that directly or indirectly impugns character, integrity, or personal reputation, or directly or indirectly makes charges concerning improper, illegal, or immoral conduct or associations, without
factual foundation; failure so to identify a Statement, form of proxy, and other soliciting material
as clearly to distinguish it from the soliciting material of any other person or persons soliciting for
the same meeting or subject matter; claims made
prior to a meeting regarding the results of a solicitation.
Legal Developments
(i) Special provisions
applicable
to election
contests.
(3) Filing of information required by Form F-6.
(i) N o solicitation subject to this paragraph (i)
shall be made by any person other than the
bank unless at least five business days prior
thereto, or such shorter period as the Board
may authorize upon a showing of good cause
therefor, there has been filed with the Board
and with each exchange upon which any security of the bank is listed, by or on behalf of each
participant in such solicitation, a statement in
duplicate containing the information specified
by Form F-6.
(ii) Within five business days after a solicitation
subject to this paragraph (i) is made by the
bank, or such longer period as the Board may
authorize upon a showing of good cause therefor, there shall be filed with the Board and with
each exchange upon which any security of the
bank is listed, by or on behalf of each participant in such solicitation, other than the bank, a
statement in duplicate containing the information specified by Form F-6.
(iii) If any solicitation on behalf of the bank or
any other person has been made, or if proxy
material is ready for distribution, prior to a
solicitation subject to this paragraph (i) in opposition thereto, a statement in duplicate containing the information specified in Form F-6 shall
be filed by or on behalf of each participant in
such prior solicitation, other than the bank, as
soon as reasonably practicable after the commencement of the solicitation in opposition
thereto, with the Board and with each exchange
on which any security of the bank is listed.
(6) Application of this paragraph to annual report.
Notwithstanding the provisions of § 206.5(c), three
copies of any portion of the annual report referred to
in that paragraph that comments upon or refers to
any solicitation subject to this paragraph (i), or to
any participant in any such solicitation, other than
the solicitation by the bank shall be filed with the
Board as proxy material subject to this § 206.5.
Such portion of the annual report shall be filed with
the Board in preliminary form at least five business
days prior to the date copies of the report are first
sent or given to security holders.
(k) Proposals of security holders.
(1) If any security holder of a bank notifies the bank
of his intention to present a proposal for action at a
159
forthcoming meeting of the bank's security holders,
the bank shall set forth the proposal in its proxy
statement and identify it in its form of proxy and
provide means by which security holders can make
the specification required by § 206.5(d)(2). If the
bank issues an information statement pursuant to
paragraph (a) of this section, it shall identify the
proposal and indicate the disposition proposed to be
made of the proposal by the management at the
meeting. The bank, however, need not include a
proposal in its information statement if such proposal is submitted less than 60 days in advance of a day
corresponding to the date of mailing a proxy statement or information statement in connection with
the last annual meeting of security holders. Notwithstanding the foregoing, the bank shall not be required to include the proposal in its proxy statement
or form of proxy unless the security holder (hereinafter, the "proponent") has complied with the requirements of this paragraph and paragraphs (k)(2)
and (3) of this section:
(i) Eligibility. At the time he submits the proposal, the proponent shall be a record or beneficial
owner of a security entitled to be voted at the
meeting on his proposal, and he shall continue to
own such security through the date on which the
meeting is held. If the bank requests documentary
support for a proponent's claim that he is a
beneficial owner of a voting security of the issuer,
the proponent shall furnish appropriate documentation within 10 business days after receiving the
request. In the event the bank includes the proponent's proposal in its proxy soliciting materials for
the meeting and the proponent fails to comply
with the requirement that he continuously be a
voting security holder through the meeting date,
the bank shall not be required to include any
proposal submitted by the proponent in its proxy
soliciting materials for any meeting held in the
following two calendar years.
(ii) Notice. The proponent shall notify the bank in
writing of his intention to appear personally at the
meeting to present his proposal for action. The
proponent shall furnish the requisite notice at the
time he submits the proposal, except that if he
was unaware of the notice requirement at that
time he shall comply with it within 10 business
days after being informed of it by the bank. If the
proponent, after furnishing in good faith the notice required by this provision, subsequently determines that he will be unable to appear personally at the meeting, he shall arrange to have another
security holder of the issuer present his proposal
on his behalf at the meeting. In the event the
proponent or his proxy fails, without good cause,
to present the proposal for action at the meeting,
160
Federal Reserve Bulletin •
February 1981
the bank shall not be required to include any
proposals submitted by the proponent in its proxy
soliciting materials for any meeting held in the
following two calendar years,
(iii) Timeliness. The proponent shall submit his
proposal sufficiently far in advance of the meeting
so that it is received by the bank within the
following time periods:
(A) Annual Meetings. A proposal to be presented at an annual meeting shall be received by
the management at the issuer's principal executive offices not less than 90 days in advance of a
date corresponding to the date set forth on the
bank's proxy statement released to security
holders in connection with the previous year's
annual meeting of security holders, except that
no annual meeting was held in the previous year
or the date of the annual meeting has been
changed by more than 30 calendar days from
the date of the previous year's annual meeting a
proposal shall be received by the bank in reasonable time before the solicitation is made.
(B) Other Meetings. A proposal to be present
at any meeting other than an annual meeting
shall be received at a reasonable time before the
solicitation is made.
NOTE: In order to curtail controversy as to the date on which a
proposal was received by the bank, it is suggested that proponents
submit their proposals by Certified Mail-Return Receipt Requested.
(iv) Number and length of proposals. The proponent may submit a maximum of two proposals of
not more than 300 words each for inclusions in the
management's proxy materials for a meeting of
security holders. If the proponent fails to comply
with either of these requirements, or if he fails to
comply with the 200-word limit on supporting
statements mentioned in paragraph (k)(2) of this
section, he shall be provided the opportunity by
the bank to reduce, within 10 business days, the
items submitted by him to the limits required by
this rule.
(2) If the bank opposes any proposal received from
a proponent, it shall also, at the request of the
proponent, include in its proxy statement a statement of the proponent of not more than 200 words in
support of the proposal, which statement shall not
include the name and address of the proponent. The
statement and request of the proponent shall be
furnished to the bank at the time that the proposal is
furnished, and the bank shall not be responsible for
such statement. The proxy statement shall also
include either the name and address of the proponent or a statement that such information will be
furnished by the issuer or by the Board to any
person, orally or in writing as requested, promptly
upon the receipt of any oral or written request
therefor. If the name and address of the proponent
are omitted from the proxy statement, they shall be
furnished to the Board at the time of filing the bank's
preliminary proxy material pursuant to § 206.5(f)(1).
(3) The bank may omit a proposal and any statement in support thereof from its proxy statement
and form of proxy under any of the following
circumstances:
(i) If the proposal is, under the laws of the issuer's domicile, not a proper subject for action by
security holders;
NOTE: A proposal that may be improper under the applicable State
law when framed as a mandate or directive may be proper when
framed as a recommendation or request.
(ii) If the proposal would, if implemented, require
the issuer to violate any State law or Federal law
of the United States, or any law of any foreign
jurisdiction, to which the issuer is subject, except
that this provision shall not apply with respect to
any foreign law compliance with which would be
violative of any State law or Federal law of the
United States;
(iii) If the proposal or the supporting statement is
contrary to any of the Board's proxy rules and
regulations, including § 206.5(h) which prohibits
false or misleading statements in proxy soliciting
materials;
(iv) If the proposal relates to the enforcement of a
personal claim or the redress of a personal grievance against the bank, or any other person;
(v) If the proposal deals with a matter that is not
significantly related to the bank's business;
(vi) If the proposal deals with a matter that is
beyond the bank's power to effectuate;
(vii) If the proposal deals with a matter relating to
the conduct of the ordinary business operations of
the bank;
(viii) If the proposal relates to an election to
office;
(ix) If the proposal is counter to a proposal to be
submitted by the bank at the meeting;
(x) If the proposal has been rendered moot;
(xi) If the proposal is substantially duplicative of
a proposal previously submitted to the management by another proponent, which proposal will
be included in the bank's proxy materials for the
meeting;
(xii) If substantially the same proposal has previously been submitted to security holders in the
bank's proxy statement and form of proxy relating
to any annual or special meeting of security
holders held within the preceding five calendar
Legal Developments
years, it may be omitted from the bank's proxy
materials relating to any meeting of security holders held within three calendar years after the
latest such previous submission; Provided, That:
(A) If the proposal was submitted at only one
meeting during such preceding period, it received less than 3 per cent of the total number
of votes cast in regard thereto; or
(B) If the proposal was submitted at only two
meetings during such preceding period, it received at the time of its second submission less
than 6 per cent of the total number of votes cast
in regard thereto; or
(C) If the proposal was submitted at three or
more meetings during such preceding period, it
received at the time of its latest submission less
than 10 per cent of the total number of votes
cast in regard thereto; and
(xiii) If the proposal relates to specific amounts of
cash or stock dividends.
(4) Whenever the bank asserts, for any reason, that
a proposal and any statement in support thereof
received from a proponent may properly be omitted
from its proxy statement and form of proxy, it shall
file with the Board, not later than 50 days prior to
the date the preliminary copies of the proxy statement and form of proxy are filed pursuant to
§ 206.5(f)(1), or such shorter period prior to such
date as the Board or its staff may permit, five copies
of the following items: (i) The proposal; (ii) any
statement in support thereof as received from the
proponent; (iii) a statement of the reasons why the
bank deems such omission to be proper in the
particular case; and (iv) where such reasons are
based on matters of law, a supporting opinion of
counsel. The bank shall at the same time, if it has
not already done so, notify the proponent of its
intention to omit the proposal from its proxy statement and form of proxy and shall forward to him a
copy of the statement of reasons why the bank
deems the omission of the proposal to be proper and
a copy of such supporting opinion of counsel.
3. Section 206.5 is amended by deleting paragraphs (1)
and (m). The paragraph designations are being reserved.
4. Section 206.6 is amended by adding a new paragraph (j) and present paragraphs (j) through (u) are
redesignated as paragraphs (k) through (v).
Section 206.6—"Insiders" Securities
Transaction and Reports under Section 16 of
the Act.
161
(j) Exemption for acquisitions under dividend reinvestment plans. Any acquisition of securities resulting
from reinvestment of dividends or interest shall be
exempt from section 16 if it is made pursuant to a plan
providing for the regular reinvestment in such securities of dividends payable thereon or of dividends or
interest payable on other securities of the same bank:
Provided, That the plan is made available on the same
terms to all holders of securities of the class on which
the reinvested dividends or interest are being paid.
5. A new section, § 206.8, is added to Part 206 to read
as follows:
Section 206.8—Tender Offers.
(a) Scope of and definitions applicable to this section
(1) Scope, (i) N o person, directly or indirectly by
use of the mails or any means or instrumentality
of interstate commerce or any facility of a national
securities exchange or otherwise, shall make a
tender offer for, or a request or invitation for
tenders of, any class of equity security which is
registered pursuant to Section 12 of the Act, of a
State member bank if, after consummation thereof, such person would, directly or indirectly, be
the beneficial owner of more than 5 per cent of
such class, unless on the date of the commencement of the tender offer such person has complied
with the requirements of paragraph (c)(1) of this
section. The definition of beneficial owner set
forth in § 206.4(h)(5)(i) for the purposes of Section
13(d)(1) of the Act shall apply also for purposes of
Section 14(d)(1) of the Act.
(2) Definitions. Unless the context otherwise requires, all terms used in this section have the
same meaning as in the Act and in § 206.2 promulgated thereunder. In addition, for purposes of
sections 14(d) and 14(e) of the Act and this section
the following definitions apply:
(i) The term "bidder" means any person who
makes a tender offer or on whose behalf a tender
offer is made;
(ii) The term "subject bank" means any State member bank which is the issuer of securities which
are sought by a bidder pursuant to a tender offer;
(iii) The term "security holders" means holders
of record and beneficial owners of securities
which are the subject of a tender offer;
(iv) The term "beneficial owner" shall have the
same meaning as that set forth in § 206.4(h)(5)(i):
Provided, however, That, except with respect to
paragraphs (c) and (i)(4) of this section and Item 6
of the Form F-13, the term shall not include a
person who does not have or share investment
162
Federal Reserve Bulletin •
February 1981
power or who may be deemed to be a beneficial
owner by virtue of his right to acquire beneficial
ownership as set forth in § 206.4(h)(5)(i)
(v) The term "tender offer material" means:
(A) The bidder's formal offer, concluding all
the material terms and conditions of the tender
offer and all amendments thereto;
(B) The related transmittal letter (whereby securities of the subject bank which are sought in
the tender offer may be transmitted to the
bidder or its depository) and all amendments
thereto; and
(C) Press releases, advertisements, letters and
other documents published by the bidder or
sent or given by the bidder to security holders
which, directly or indirectly, solicit, invite or
request tenders of the securities being sought in
the tender offer;
(vi) The term "business day" means any day,
other than Saturday, Sunday or a Federal holiday,
and shall consist of the time period from 12:01
a.m. through 12:00 midnight Eastern time. In
computing any time period under section 14(d)(5)
or section 14(d)(6) of the Act or under CFR Part
206 the date of the event which begins the running
of such time period shall be included except that if
such event occurs in other than a business day
such period shall begin to run on and shall include
the first business day thereafter; and
(vii) The term "security position listing" means,
with respect to securities of any issuer held by a
registered clearing agency in the name of the
clearing agency or its nominee, a list of those
participants in the clearing agency on whose behalf the clearing agency holds the bank's securities and of the participants' respective positions in
such securities as of a specified date.
(b) Date of commencement of a tender offer.
(1) Commencement. A tender offer shall commence
for the purposes of section 14(d) of the Act and the
rules promulgated thereunder at 12:01 a.m. on the
date when the first of the following events occurs:
(i) The long-form publication of the tender offer is
first published by the bidder pursuant to paragraph (d)(l)(i) of this section.
(ii) The summary advertisement of the tender
offer is first published by the bidder pursuant to
paragraph (d)(l)(i) of this section.
(iii) The summary advertisement or the long-form
publication of the tender offer is first published by
the bidder pursuant to paragraph (d)(l)(i) of this
section.
(iv) Definitive copies of a tender offer, in which
the consideration offered by the bidder consists of
securities registered pursuant to the Securities
Act of 1933, are first published or sent or given by
the bidder to security holders; or
(v) The tender offer is first published or sent or
given to security holders by the bidder by any
means not otherwise referred to in subparagraphs
(l)(i) through (l)(iv) of this paragraph.
(2) Public announcement. A public announcement
by a bidder through a press release, newspaper
advertisement or public statement which includes
the information at subparagraph (3) of this paragraph with respect to a tender offer in which the
consideration consists solely of cash and/or securities exempt from registration under section 3 of the
Securities Act of 1933 shall be deemed to constitute
the commencement of a tender offer under subparagraph (l)(v) of this paragraph except that such
tender offer shall not be deemed to be first published
or sent or given to security holders by the bidder
under subparagraph (l)(v) or this paragraph on the
date of such public announcement if within five
business days of such public announcement, the
bidder either:
(i) Makes a subsequent public announcement
stating that the bidder has determined not to
continue with such tender offer, in which event
subparagraph (l)(v) of this paragraph shall not
apply to the initial public announcement; or
(ii) Complies with paragraph (c)(1) of this section
and contemporaneously disseminates the disclosure required by paragraph (f) of this section to
security holders pursuant to paragraph (d) of this
section or otherwise in which event:
(A) The date of commencement of such tender
offer under subparagraph (1) of this paragraph
will be determined by the date the information
required by paragraph (f) of this section is first
published or sent or given to security holders
pursuant to paragraph (d) of this section or
otherwise; and
(B) Notwithstanding subparagraph (2)(ii)(A) of
this paragraph, section 14(d)(7) of the Act shall
be deemed to apply to such tender offer from
the date of such public announcement.
(3) Information. The information referred to in subparagraph (2) of this paragraph is as follows:
(i) The identity of the bidder.
(ii) The identity of the subject company ; and
(iii) The amount and class of securities being
sought and the price or range of prices being
offered therefor.
(4) Announcements not resulting in commencement.
A public announcement by a bidder through a press
release, newspaper advertisement or public statement which only discloses the information in subparagraphs (4)(i) through (4)(iii) of this paragraph
concerning a tender offer in which the consideration
Legal Developments
consists solely of cash and/or securities exempt
from registration under section 3 of the Securities
Act of 1933 shall not be deemed to constitute the
commencement of a tender offer under subparagraph (l)(v) of this paragraph.
(i) The identity of the bidder.
(ii) The identity of the subject company; and
(iii) A statement that the bidder intends to make a
tender offer in the future for a class of equity
securities of the subject bank which statement
does not specify the amount of securities of such
class to be sought or the consideration to be
offered therefor.
(5) Public Announcement. A public announcement
concerning a tender offer by a bidder through a press
release, newspaper advertisement or public statement which states that the offering will be made only
by means of a prospectus and discloses the name of
the bank and the title of the securities to be surrendered in exchange for the securities to be offered
and the basis upon which the exchange may be made
where the consideration consists solely or in part of
securities to be registered under the Securities Act
of 1933 shall not be deemed to constitute the commencement of a tender offer under subparagraph
(l)(v) of this paragraph: Provided. That such bidder
files a registration statement with respect to such
securities promptly after such public announcement.
(c) Filing and transmission of tender offer statement.
(1) Filing and transmittal. N o bidder shall make a
tender offer if, after consummation thereof, such
bidder would be the beneficial owner of more than 5
percent of the class of the subject bank securities for
which the tender offer is made, unless as soon as
practicable on the date of the commencement of the
tender offer such bidder:
(i) Files with the Board six copies of a Tender
Offer Statement on Form F-13 (12 CFR 206.82)
including all exhibits thereto;
(ii) Hand delivers a copy of such Form F-13,
including all exhibits thereto;
(A) To the subject bank at its principal executive office; and
(B) To any other bidder, which has filed a Form
F-13 with the Board relating to a tender offer
that has not yet terminated for the same class of
securities of the subject bank, at such bidder's
principal executive office or at the address of
the person authorized to receive notices and
communications (which is disclosed on the cover sheet of such other bidder's Form F-13);
(iii) Gives telephonic notice of the information
required by paragraphs (f)(5)(ii) (A) and (B) of this
section and mails by means of first class mail a
163
copy of such Form F-13, including all exhibits
thereto:
(A) To each national securities exchange where
such class of the subject bank's securities is
registered and listed for trading (which may be
based upon information contained in the subject
bank's most recent Annual Report on Form F-2
(12 CFR 206.42) filed with the Board unless the
bidder has reason to believe that such information is not current) which telephonic notice
shall be made when practicable prior to the
opening of each such exchange; and
(B) To the National Association of Securities
Dealers, Inc. ("NASD") if such class of the
subject bank's securities are authorized for
quotation in the NASDAQ interdealer quotation system.
(2) Additional materials. The bidder shall file with
the Board six copies of any additional tender offer
materials as an exhibit to the Form F-13 required by
this section, and if a material change occurs in the
information set forth in such Form F-13, six copies
of an amendment to Form F-13 each of which shall
include all exhibits other than those required by
Item 11(a) of Form F-13 disclosing such change and
shall send a copy of such additional tender offer
material or such amendment to the subject bank and
to any exchange and/or the NASD, as required by
subparagraph (1) of this paragraph, promptly but not
later than the date such additional tender offer
material or such change is first published, sent or
given to security holders.
(3) Certain announcements. Notwithstanding the
provisions of subparagraph (2) of this paragraph, if
the additional tender offer material or an amendment
to Form F-13 discloses only the number of shares
deposited to date, and/or announces an extension of
the time during which shares may be tendered, then
the bidder may file such tender offer material or
amendment and send a copy of such tender offer
material or amendment to the subject bank, any
exchange and/or the NASD, as required by subparagraph (1) of this paragraph, promptly after the date
such tender offer material is first published or sent
or given to security holders.
(d) Dissemination of certain tender offers
(1) Materials deemed published or sent or given. A
tender offer in which the consideration consists
solely of cash and/or securities exempt from registration under section 3 of the Securities Act of 1933
shall be deemed "published or sent or given to
security holders" within the meaning of section
14(d)(1) of the Act if the bidder complies with all of
the requirements of any one of the following subparagraphs: Provided, however, That any such tender
164
Federal Reserve Bulletin •
February 1981
offer may be published or sent or given to security
holders by other methods, but with respect to summary publication, and the use of stockholder lists
and security position listings pursuant to paragraph
(e), paragraphs (d)(l)(ii) and (iii) are exclusive.
(i) Long-form publication. The bidder makes adequate publication in a newspaper of long-form
publication of the tender offer.
(ii) Summary publication.
(A) The bidder makes adequate publication in a
newspaper or newspapers of a summary advertisement of the tender offer; and
(B) Mails by first class mail or otherwise furnishes with reasonable promptness the bidder's
tender offer materials to any security holder
who requests such tender offer materials pursuant to the summary advertisement or otherwise.
(iii) Use of stockholder lists and security position
listings. Any bidder using stockholder lists and
security position listings pursuant to paragraph (e)
of this section shall comply with subparagraphs
(l)(i) or (l)(ii) of this paragraph on or prior to the
date of the bidder's request for such lists or listing
pursuant to paragraph (e)(1) of this section.
(2) Adequate publication. Depending on the facts
and circumstances involved, adequate publication
of a tender offer pursuant to this section may require
publication in a newspaper with a national circulation or may only require publication in a newspaper
with metropolitan or regional circulation or may
require publication in a combination thereof: Provided, however, That publication in all editions of a
daily newspaper with a national circulation shall be
deemed to constitute adequate publication.
(3) Publication of changes. If a tender offer had been
published or sent or given to security holders by one
or more of the methods enumerated in subparagraph
(1) of this paragraph a material change in the information published, sent or given to security holders
shall be promptly disseminated to security holders
in a manner reasonably designed to inform security
holders of such change: Provided, however, That if
the bidder has elected pursuant to paragraph (e)(6)(i)
of this section to require the subject company to disseminate amendments disclosing material changes
to the tender offer materials pursuant to paragraph
(e) of this section the bidder shall disseminate material changes in the information published or sent or
given to security holders at least pursuant to paragraph (e) of this section.
(e) Dissemination of certain tender offers by the use
of stockholder
lists.
(1) Obligations of the subject bank. Upon receipt by
a subject bank at its principal executive offices of a
bidder's written request, meeting the requirements
of paragraph (e)(5) of this section, the subject shall
comply with the following:
(i) The subject bank shall notify promptly transfer
agents and any other person who will assist the
subject in complying with the requirements of this
paragraph of the receipt by the subject bank of a
request by a bidder pursuant to this paragraph.
(ii) The subject bank shall promptly ascertain
whether the most recently prepared stockholder
list, written or otherwise, within the access of the
subject bank was prepared as of a date earlier than
ten business days before the date of the bidder's
request and, if so, the subject bank shall promptly
prepare or cause to be prepared a stockholder list
as of the most recent practicable date which shall
not be more than ten business days before the
date of the bidder's request.
(iii) The subject bank shall make an election to
comply and shall comply with all of the provisions
of either subparagraph (2) or subparagraph (3) of
this paragraph. The subject's bank's election,
once made, shall not be modified or revoked
during the bidder's tender offer and extensions
thereof.
(iv) N o later than the second business day after
the date of the bidder's request, the subject bank
shall orally notify the bidder, which notification
shall be confirmed in writing, of the subject
bank's election made pursuant to subparagraph
(l)(iii) of this paragraph. Such notification shall
indicate (A) the approximate number of security
holders of the class of securities being sought by
the bidder and, (B) if the subject bank elects to
comply with subparagraph (2) of this paragraph,
appropriate information concerning the location
for delivery of the bidder's tender offer materials
and the approximate direct costs incidental to the
mailing to security holders of the bidder's tender
offer materials computed in accordance with subparagraph (7)(ii) of this paragraph.
(2) Mailing of tender offer materials by the subject
bank. A subject bank which elects pursuant to
subparagraph (l)(iii) of this paragraph to comply
with the provisions of this paragraph shall perform
the acts prescribed by the following subparagraphs.
(i) The subject bank shall promptly contact each
participant named on the most recent security
position listing of any clearing agency within the
access of the subject bank and make inquiry of
each such participant as to the approximate number of beneficial owners of the subject bank
securities being sought in the tender offer held by
each such participant.
(ii) N o later than the third business day after
delivery of the bidder's tender offer materials
pursuant to subparagraph (7)(i) of this paragraph,
Legal Developments
the subject bank shall begin to mail or cause to be
mailed by means of first class mail a copy of the
bidder's tender offer materials to each person
whose name appears as a record holder of the
class of securities for which the offer is made on
the most recent stockholder list referred to in
subparagraph (l)(ii) of this paragraph. The subject
bank shall use its best efforts to complete the
mailing in a timely manner but in no event shall
such mailings be completed in a substantially
greater period of time than the subject bank would
complete a mailing to security holders of its own
materials relating to the tender offer.
(iii) N o later than the third business day after the
delivery of the bidder's tender offer materials
pursuant to subparagraph (7)(i) of this paragraph,
the subject bank shall begin to transmit or cause
to be transmitted a sufficient number of sets of the
bidder's tender offer materials to the participants
named on the security position listings described
in subparagraph (2)(i) of this paragraph. The subject bank shall use its best efforts to complete the
transmittal in a timely manner but in no event
shall such transmittal be completed in a substantially greater period of time than the subject bank
would complete a transmittal to such participants
pursuant to security position listings or clearing
agencies of its own material relating to the tender
offer.
(iv) The subject bank shall promptly give oral
notification to the bidder, which notification shall
be confirmed in writing, of the commencement of
the mailing pursuant to subparagraph (2)(ii) of this
paragraph and of" the transmittal pursuant to subparagraph (2)(iii) of this paragraph.
(v) During the tender offer and any extension
thereof the subject bank shall use reasonable
efforts to update the stockholder list and shall mail
or cause to be mailed promptly following each
update a copy of the bidder's tender offer materials (to the extent sufficient sets of such materials
have been furnished by the bidder) to each person
who has become a record holder since the later of
(A) the date of preparation of the most recent
stockholder list referred to in subparagraph
(e)(l)(ii) of this section or (B) the last preceding
update.
(vi) If the bidder has elected pursuant to subparagraph (6)(i) of this paragraph to require the subject
bank to disseminate amendments disclosing materials changes to the tender offer materials pursuant to this paragraph, the subject bank, promptly
following delivery of each such amendment, shall
mail or cause to be mailed a copy of each such
amendment to each record holder whose name
appears on the shareholder list described in sub-
165
paragraphs (l)(ii) and (2)(v) of this paragraph and
shall transmit or cause to be transmitted sufficient
copies of such amendment to each participant
named on security position listings who received
sets of the bidder's tender offer materials pursuant
to subparagraph (2)(iii) of this paragraph.
(vii) The subject bank shall not include any communication other than the bidder's tender offer
materials or amendments thereto in the envelopes
or other containers furnished by the bidder.
(viii) Promptly following the termination of the
tender offer, the subject bank shall reimburse the
bidder the excess, if any, of the amounts advanced pursuant to subparagraph (6)(iii)(C) over
the direct costs incidental to compliance by the
subject bank and its agents in performing the acts
required by this paragraph computed in accordance with subparagraph (7)(ii) of this paragraph.
(3) Delivery of stockholder lists and security position listings. A subject bank which elects pursuant
to subparagraph (l)(iii) of this paragraph to comply
with the provisions of this paragraph shall perform
the acts prescribed by the following:
(i) N o later than the third business day after the
date of the bidder's request, the subject bank shall
furnish to the bidder at the subject bank's principal executive office a copy of the names and
addresses of the record holders on the most recent
stockholder list referred to in subparagraph (l)(ii)
of this paragraph and a copy of the names and
addresses of participants identified on the most
recent security position listing of any clearing
agency which is within the access of the subject
bank.
(ii) If the bidder has elected pursuant to subparagraph (6)(i) of this paragraph to require the subject
bank to disseminate amendments disclosing material changes to the tender offer materials, the
subject bank shall update the stockholder list by
furnishing the bidder with the name and address
of each record holder named on the stockholder
list, and not previously furnished to the bidder,
promptly after such information becomes available to the subject bank during the tender offer
and any extensions thereof.
(4) Liability of subject bank and others. Neither the
subject bank nor any affiliate or agent of the subject
bank nor any clearing agency shall be:
(i) Deemed to have made a solicitation or recommendation respecting the tender offer within the
meaning of section 14(d)(4) based solely upon the
compliance by the subject bank or any affiliate or
agent of the subject bank with one or more
requirements of this section;
(ii) Liable under any provision of the Federal
securities laws to the bidder or to any security
166
Federal Reserve Bulletin •
February 1981
holder based solely upon the inaccuracy of the
current names or addresses on the stockholder list
or security position listing, unless such inaccuracy results from a lack of reasonable care on the
part of the subject bank or any affiliate or agent of
the subject bank.
(iii) Deemed to be an "underwriter'' within the
meaning of section (2)(11) of the Securities Act of
1933 for any purpose of that Act or any rule or
regulation promulgated thereunder based solely
upon the compliance or noncompliance by the
subject bank or any affiliate or agent of the subject
bank with one or more of the requirements of this
paragraph;
(iv) Liable under any provision of the federal
securities laws for the disclosure in the bidder's
tender offer materials, including any amendment
thereto, based solely upon the compliance or
noncompliance by the subject bank or any affiliate
or agent of the subject bank with one or more of
the requirements of this paragraph.
(5) Content of the bidder's request. The bidder's
written request referred to in subparagraph (1) of
this paragraph shall include the following:
(i) The identity of the bidder;
(ii) The title of the class of securities which is the
subject of the bidder's tender offer;
(iii) A statement that the bidder is making a
request to the subject bank pursuant to subparagraph (1) of this paragraph for the use of the
stockholder list and security position listings for
the purpose of disseminating a tender offer to
security holders;
(iv) A statement that the bidder is aware of and
will comply with the provisions of subparagraph
(6) of this paragraph;
(v) A statement as to whether or not it has elected
pursuant to subparagraph (6)(i) of this paragraph
to disseminate amendments disclosing material
changes to the tender offer materials pursuant to
this paragraph; and
(vi) The name, address and telephone number of
the person whom the subject bank shall contact
pursuant to subparagraph (l)(iv) of this paragraph.
(6) Obligations of the bidder. Any bidder who requires that a subject bank comply with the provisions of subparagraph (1) of this paragraph, shall
comply with the following:
(i) The bidder shall make an election whether or
not to require the subject bank to disseminate
amendments disclosing material changes to the
tender offer materials pursuant to this paragraph,
which election shall be included in the request
referred to in subparagraph (1) of this paragraph
and shall not be revocable by the bidder during
the tender offer and extensions thereof.
(ii) With respect to a tender offer subject to
section 14(d)(1) of the Act in which the consideration consists solely of cash and/or securities
exempt from registration under section 3 of the
Securities Act of 1933, the bidder shall comply
with the requirements of paragraph (d)(l)(iii) of
this section.
(iii) If the subject bank elects to comply with
subparagraph (2) of this paragraph,
(A) The bidder shall promptly deliver the tender
offer materials after receipt of the notification
from the subject bank, as provided in subparagraph (l)(iv) of this paragraph;
(B) The bidder shall promptly notify the subject
bank of any amendment to the bidder's tender
offer materials requiring compliance by the subject bank with subparagraph (2)(vi) of this paragraph and shall promptly deliver such amendment to the subject bank pursuant to subparagraph (7)(i) of this paragraph;
(C) The bidder shall advance to the subject
bank an amount equal to the approximate cost
of conducting mailings to security holders computed in accordance with subparagraph (7)(ii) of
this paragraph;
(D) The bidder shall promptly reimburse the
subject bank for the direct costs incidental to
compliance by the subject bank and its agents in
performing the act required by this section
computed in accordance with subparagraph
(7)(ii) of this paragraph which are in excess of
the amount advanced pursuant to subparagraph
(6)(iii)(C) of this paragraph, and
(E) The bidder shall mail by means of first class
mail or otherwise furnish with reasonable
promptness the tender offer materials to any
security holder who requests such materials.
(iv) If the subject bank elects to comply with
subparagraph (3) of this paragraph:
(A) The subject bank shall use the stockholder
and security position listings furnished to the
bidder pursuant to subparagraph (3) of this
paragraph exclusively in the dissemination of
tender offer materials to security holders in
connection with the bidder's tender offer and
extensions thereof;
(B) The bidder shall return the stockholder lists
and security position listings furnished to the
bidder pursuant to subparagraph (3) of this
paragraph promptly after the termination of the
bidder's tender offer;
(C) The bidder shall accept, handle and return
the stockholder lists and security position list-
Legal Developments
ings furnished to the bidder pursuant to subparagraph (3) of this paragraph to the subject bank
on a confidential basis;
(D) The bidder shall not retain any stockholder
list or security position listing furnished by the
subject bank pursuant to subparagraph (3) of
this paragraph, or any copy thereof, nor retain
any information derived from any such list or
listing or copy thereof after the termination of
the bidder's tender offer;
(E) The bidder shall mail by means of first class
mail, at its own expense, a copy of its tender
offer materials to each person whose identity
appears on the stockholder list as furnished and
updated by the subject bank pursuant to subparagraphs (3)(i) and (3)(ii) of this paragraph;
(F) The bidder shall contact the participants
named on the security position listing of any
clearing agency, make inquiry of each participant as to the appropriate number of sets of
tender offer materials required by each such
participant, and furnish, at its own expense,
sufficient sets of tender offer materials and any
amendment thereto to each such participant for
subsequent transmission to the beneficial owners of the securities being sought by the bidder;
(G) The bidder shall mail by means of first class
mail or otherwise furnish with reasonable
promptness the tender offer materials to any
security holder who requests such materials;
and
(H) The bidder shall promptly reimburse the
subject bank for direct costs incidental to compliance by the subject bank and its agents in
performing the acts required by this section
computed in accordance with subparagraph
(7)(ii) of this paragraph.
(7) Delivery of materials, computation of direct
costs.
(i) Whenever the bidder is required to deliver
tender offer materials or amendments to tender
offer materials, the bidder shall deliver to the
subject bank at the location specified by the
subject bank in its notice given pursuant to subparagraph (l)(iv) of this paragraph a number of
sets of the materials or of the amendment, as the
case may be, at least equal to the approximate
number of security holders specified by the subject bank in such notice, together with appropriate
envelopes or other containers therefor: Provided,
however, That such delivery shall be deemed not
to have been made unless the bidder has complied
with subparagraph (6)(iii)(C) of this paragraph at
the time the materials or amendments, as the case
may be, are delivered.
167
(ii) The approximate direct cost of mailing the
bidder's tender offer materials shall be computed
by adding (A) the direct cost incidental to the
mailing of the subject bank's last annual report to
shareholders (excluding employee time), less the
costs of preparation and printing of the report,
and postage, plus (B) the amount of first class
postage required to mail the bidder's tender offer
materials. The approximate direct costs incidental
to the mailing of the amendments to the bidder's
tender offer materials shall be computed by adding (C) the estimated direct costs of preparing
mailing labels, or updating shareholder lists and of
third party handling charges plus (D) the amount
of first class postage required to mail the bidder's
amendment. Direct costs incidental to the mailing
of the bidder's tender offer materials thereto when
finally computed may include all reasonable
charges paid by the subject bank to third parties
for supplies or services, including costs attendant
to preparing shareholder lists, mailing labels, handling the bidder's materials, contacting participants named on security position listings and for
postage, but shall exclude indirect costs, such as
employee time which is devoted to either contesting or supporting the tender offer on behalf of the
subject bank. The final billing for direct costs shall
be accompanied by an appropriate accounting in
reasonable detail.
(f) Disclosure requirements with respect to tender
offers.
(1) Information required on date of commencement
(i) Long-form publication. If a tender offer is
published, sent or given to security holders on the
date of commencement by means or long-form
publication pursuant to paragraph (d)(l)(i) of this
section such long-form publication shall include
the information required by subparagraph (5)(i) of
this paragraph.
(ii) Summary publication. If a tender offer is
published, sent or given to security holders on the
date of commencement by means of summary
publication pursuant to paragraph (d)(l)(ii) of this
section:
(A) The summary advertisement shall contain
and shall be limited to, the information required
by subparagraph (5)(ii) of this paragraph; and
(B) The tender offer materials furnished by the
bidder upon the request of any security holder
shall include the information required by subparagraph (5)(i) of this paragraph.
(iii) U s e of stockholder lists and security position
listings. If a tender offer is published or sent or
given to security holders on the date of com-
168
Federal Reserve Bulletin •
February 1981
mencement by the use of stockholder lists and
security position listings pursuant to paragraph
(d)(l)(iii).
(A) Either (1) the summary advertisement shall
contain, and shall be limited to the information
required by subparagraph (5)(ii) of this paragraph, or (2) if long-form publication of the
tender offer is made, such long-form publication
shall include the information required by subparagraph (5)(i) of this paragraph, and
(B) The tender offer materials transmitted to
security holders pursuant to such lists and
security position listings and furnished by the
bidder upon the request of any security holder
shall include the information required by subparagraph (5)(i) of this paragraph.
(iv) Other tender offers. If a tender offer is published or sent or given to security holders other
than pursuant to paragraph (d)(1) of this section
the tender offer materials that are published or
sent or given to security holders on the date of
commencement of such offer shall include the
information required by subparagraph (5)(i) of this
paragraph.
(2) Information required in summary advertisement
made after commencement. A summary advertisement published subsequent to the date of commencement of the tender offer shall include at least
the information specified in subparagraphs (5)(i)(A)(D) and (5)(ii)(D) of this paragraph.
(3) Information required in other tender offer materials published after commencement. Except for
summary advertisements described in subparagraph
(2) of this paragraph and tender offer materials
described in subparagraphs (l)(ii)(B) and (l)(iii)(B)
of this paragraph, additional tender offer materials
published, sent or given to security holders subsequent to the date of commencement shall include the
information required by subparagraphs (5)(i) of this
paragraph and may omit any of the information
required by subparagraphs (5)(i)(E-H) of this paragraph which has been previously furnished by the
bidder in connection with the tender offer.
(4) Material changes. A material change in the information published or sent or given to security holders
shall be promptly disclosed to security holders in
additional tender offer materials.
(5) Information to be included
(i) Long-form publication and tender offer materials. The information required to be disclosed by
subparagraphs (l)(i), (l)(ii)(B), (l)(iii)(A)(b) and
(l)(iv) of this paragraph shall include the following:
(A) The identity of the holder;
(B) The identity of the subject bank;
(C) The amount of class of securities being
sought and the type and amount of consideration being offered therefor;
(D) The scheduled expiration date of the tender
offer, whether the tender offer may be extended
and, if so, the procedures for extension of the
tender offer;
(E) The exact dates prior to which, and after
which, security holders who deposit their securities will have the right to withdraw their
securities pursuant to section 14(d)(5) of the Act
and paragraph (g) of this section and the manner
in which shares will be accepted for payment
and in which withdrawal may be effected;
(F) If the tender offer is for less than all the
outstanding securities of a class of equity securities and the bidder is not obligated to purchase
all of the securities tendered, the period or
periods, and in the case of the period from the
commencement of the offer, the date of the
expiration of such period during which the
securities will be taken up pro rata pursuant to
Section 14(d)(6) of the Act or paragraph (h) and
the present intention or plan of the bidder with
respect to the tender offer in the event of an
oversubscription by security holders;
(G) The disclosure required by Items 1(c); 2
(with respect to persons other than the bidder,
excluding sub-items (b) and (d)); 3; 4; 5; 6; 7; 8;
and 10 of Form F-13 (12 CFR 206.82) or a fair
and adequate summary thereof; Provided, however, That negative responses to any such item
or sub-item of Form F-13 need not be included;
and
(H) The disclosure required by Item 9 of Form
F-13 or a fair and adequate summary thereof. If
the information required by Item 9 is summarized, appropriate instructions shall be included
stating how complete financial information can
be obtained.
(ii) Summary publication. The information required to be disclosed by subparagraphs (l)(ii)(A)
and (l)(iii)(A)(a) of this paragraph in a summary
advertisement is as follows:
(A) The information required by subparagraph
(5)(i)(A) through (F) of this paragraph;
(B) If the tender offer is for less than all the
outstanding securities of a class of equity securities, a statement as to whether the purpose or
one of the purposes of the tender offer is to
acquire or influence control of the business of
the subject bank;
(C) A statement that the information required
by subparagraph (5)(i)(G) of this paragraph is
incorporated by reference into the summary
advertisement;
(D) Appropriate instructions as to how security
Legal Developments
holders may obtain promptly, at the bidder's
expense, the bidder's tender offer materials;
and
(E) In a tender offer published or sent or given
to security holders by the use of stockholder
lists and security position listings pursuant to
paragraph (d)(l)(iii) of this section a statement
that a request is being made for such lists and
listings and that tender offer materials will be
mailed to record holders and will be furnished
to brokers, banks and similar persons whose
name appears or whose nominee appears on the
list of stockholders or, if applicable, who are
listed as participants in a clearing agency's
security position listing for subsequent transmittal to beneficial owners of such securities,
(iii) N o transmittal letter. Neither the initial summary advertisement nor any subsequent summary
advertisement shall include a transmittal letter
(whereby securities of the subject bank which are
sought in the tender offer may be transmitted to
the bidder or its depository) or any amendment
thereto.
(g) Additional withdrawal
rights,
(1) Rights. In addition to the provisions of section
14(d)(5) of the Act, any person who has deposited
securities pursuant to a tender offer has the right to
withdraw any such securities during the following
periods:
(i) At any time until the expiration of fifteen
business days from the date of commencement of
such tender offer; and
(ii) On the date and until the expiration of ten
business days following the date of commencement of another bidder's tender offer other than
pursuant to paragraph (b)(2) of this section for
securities of the same class: Provided, That the
bidder has received notice or otherwise has
knowledge of the commencement of such other
tender offer: And, provided further, That withdrawal may only be effected with respect to
securities which have not been accepted for payment in the manner set forth in the bidder's tender
offer prior to the date such other tender offer is
first published, sent or given to security holders.
(2) Computation of time periods. The time periods
for withdrawal rights pursuant to this section shall
be computed on a concurrent, as opposed to a
consecutive, basis.
(3) Knowledge of competing offer. For the purposes
of this section, a bidder shall be presumed to have
knowledge of another tender offer, as described in
subparagraph (l)(ii) of this paragraph, on the date
such bidder receives a copy of the Form F-13
169
(12 CFR 206.82) pursuant to paragraph (c) of this
section from such other bidder.
(4) Notice of withdrawal. Notice of withdrawal pursuant to this paragraph shall be deemed to be timely
upon the receipt by the bidder's depository of a
written notice of withdrawal specifying the name(s)
of the tendering stockholder(s), the number or
amount of the securities to be withdrawn and the
name(s) in which the certificate(s) is (are) registered,
if different from that of the tendering security holde r s ) . A bidder may impose other reasonable requirements, including certificate numbers and a
signed request for withdrawal accompanied by a
signature guarantee, as conditions precedent to the
physical release of withdrawn securities.
(h) Exemption from statutory pro rata
requirements.
The limited pro rata provisions of section 14(d)(6) of
the Act shall not apply to any tender offer for less than
all the outstanding securities of the class for which the
tender offer is made to the extent that the bidder
provides in the tender offer materials disseminated to
security holders on the date of commencement of the
tender offer that in the event more securities are
deposited during the period(s) described in subparagraphs (1) and/or (2) of this paragraph than the bidder
is bound or willing to accept for payment, all securities
deposited during such period(s) will be accepted for
payment as nearly as practicable on a pro rata basis,
disregarding fractions, according to the number of
securities deposited by each depositor.
(1) Any period which exceeds ten days from the
date of commencement of the tender offer.
(2) Any period which exceeds ten days from the
date that notice of an increase in the consideration
offered is first published, sent or given to security
holders.
(i) Solicitation!recommendations
statements
with
respect to certain tender offers.
(1) Filing and transmittal of recommendation statement. N o solicitation or recommendation to security
holders shall be made by recommendation to security holders shall be made by any person described in
subparagraph (4) of this paragraph with respect to a
tender offer for such securities unless as soon as
practicable on the earliest date such solicitation or
recommendation is first published or sent or given to
security holders such person complies with the
following subparagraphs.
(i) Such persons shall file with the Board six
copies of a Tender Offer Solicitation/Recommendation Statement on Form F-12 (12 CFR 206.81)
including all exhibits thereto; and
(ii) If such person is either the subject bank or an
affiliate of the subject bank,
170
Federal Reserve Bulletin •
February 1981
(A) Such person shall deliver a copy of the
Form F-12 to the bidder at its principal office or
at the address of the person authorized to
receive notices and communications (which is
set forth on the cover sheet of the bidder's
Form F-13 (12 CFR 206.82) filed with the Commission; and
(B) Such person shall give telephonic notice
(which notice to the extent possible shall be
given prior to the opening of the market) of the
information required by Items 2 and 4(a) of
Form F-12 and shall mail a copy of the Form to
each national securities exchange where the
class of securities is registered and listed for
trading and, if the class is authorized for quotation in the N A S D A Q interdealer quotation system, to the National Association of Securities
Dealers, Inc. ( " N A S D " ) .
(iii) If such person is neither the subject bank nor
an affiliate of the subject bank,
(A) Such person shall mail a copy of the schedule to the bidder at its principal office or at the
address of the person authorized to receive
notices and communications (which is set forth
on the cover sheet of the bidder's Form F-13
filed with the Board), and
(B) Such person shall mail a copy of the Form
to the subject bank at its principal office.
(2) Amendments. If any material change occurs in
the information set forth in the Form F-12 required
by this section, the person who filed such Form F-12
shall:
(i) File with the Board six copies of an amendment on Form F-12 disclosing such change
promptly, but not later than the date such materials is first published, sent or given to security
holders; and
(ii) Promptly deliver copies and give notice of the
amendment in the same manner as that specified
in subparagraph (l)(ii) or subparagraph (l)(iii) of
this paragraph, whichever is applicable; and
(iii) Promptly disclose and disseminate such
change in a manner reasonably designed to inform
security holders of such change.
(3) Information required in solicitation or recommendation. Any solicitation or recommendation to
holders of a class of securities referred to in section
14(d)(1) of the Act with respect to a tender offer for
such securities shall include the name of the person
making such solicitation or recommendation and the
information required by Items 1, 2, 3(b), 4, 6, 7 and 8
of Form F-12 or a fair and adequate summary
thereof; Provided, however, That such solicitation
or recommendation may omit any such information
previously furnished to security holders of such
class of securities by such person with respect to
such tender offer.
(4) Applicability.
(i) Except as is provided in subparagraphs (4)(ii)
and (5) of this paragraph, paragraph (i) shall only
apply to the following persons:
(A) The subject bank, any director, officer,
employee, affiliate or subsidiary of the subject
bank;
(B) Any record holder or beneficial owner of
any security issued by the subject bank, by the
bidder, or by any affiliate of either the subject
bank or the bidder; and
(C) Any person who makes a solicitation or
recommendation to security holders on behalf
of any of the foregoing or on behalf of the
bidder other than by means of a solicitation or
recommendation to security holders which has
been filed with the board pursuant to this paragraph or paragraph (c) of this section.
(ii) Notwithstanding paragraph (4)(i) of this paragraph, paragraph (i) shall not apply to the following persons:
(A) A bidder who has filed a Form F-13 pursuant to paragraph (c) of this section;
(B) Attorneys, banks, brokers, fiduciaries or
investment advisers who are not participating in
a tender offer in more than a ministerial capacity and who furnish information and/or advice
regarding such tender offer to their customers
or clients on the unsolicited request and such
customers or clients or solely pursuant to a
contract or a relationship providing for advice
to the customer or client to whom the information and/or advice is given.
(5) Stop-look-and-listen communication. Paragraph
(i) shall not apply to the subject bank with respect to
a communication by the subject bank to its security
holders which only ;
(i) Identifies the tender offer by the bidder;
(ii) States that such tender offer is under consideration by the subject bank's board of directors
and/or management;
(iii) States that on or before a specified date
(which shall be no later than 10 business days
from the date of commencement of such tender
offer) the subject bank will advise such security
holders of (A) whether the subject bank recommends acceptance or rejection of such tender
offer; expresses no opinion and remains neutral
toward such tender offer; or is unable to take a
position with respect to such tender offer and (B)
the reason(s) for the position taken by the subject
bank with respect to the tender offer (including
the inability to take a position); and
Legal Developments
(iv) Requests such security holders to deter making a determination whether to accept or reject
such tender offer until they have been advised of
the subject bank's position with respect thereto
pursuant to subparagraph (5)(iii) of this paragraph.
(6) Statement of management's positon. A statement by the subject bank of its position with respect
to a tender offer which is required to be published or
sent or given to security holders pursuant to paragraph (m) of this section shall be deemed to constitute a solicitation or recommendation within the
meaning of this section and section 14(d)(4) of the
Act.
(j)-(l)
Reserved.
(m) Unlawful tender offer practices. N o person who
makes a tender offer shall:
(1) Hold such tender offer open for less than twenty
business days from the date such offer is first
published or sent or given to security holders.
(2) Increase the offered consideration or the dealer's soliciting fee to be given in tender offer unless
such tender offer remains open for at least ten
business days from the date that notice of such
increase is first published, sent or given to security
holders.
(3) Fail to pay the consideration offered or return
the securities deposited by or on behalf of security
holders promptly after the termination or withdrawal of a tender offer.
(4) Extend the length of a tender offer without
issuing a notice of such extension by press release or
other public announcement, which notice shall include disclosure of the approximate number of securities deposited to date and shall be issued no later
than the earlier of (i) 9:00 a.m. Eastern time, on the
next business day after the scheduled expiration
date of the offer or (ii), if the class of securities
which is the subject of the tender offer is registered
on one or more national securities exchanges, the
first opening of any one of such exchanges on the
next business day after the scheduled expiration
date of the offer.
(5) Position of subject bank. As a means reasonably
designed to prevent fraudulent, deceptive or manipulative acts or practices within the meaning of
section 14(e) of the Act, the subject bank, no later
than 10 business days from the date the tender offer
is first published or sent or given, shall publish, send
or give to security holders a statement disclosing
that the subject bank:
(i) Recommends acceptance or rejection of the
bidder's tender offer;
171
(ii) Expresses no opinion and is remaining neutral
toward the bidder's tender offer; or
(iii) Is unable to take a position with respect to
the bidder's tender offer. Such statement shall
also include the reason(s) for the position (including the inability to take a position) disclosed
therein.
(6) Material change. If any material change occurs
in the disclosure required by this section, the subject
bank shall promptly publish, send or give a statement disclosing such material change to security
holders.
(n) Material change. If any material change occurs in
the facts set forth in the statement required by paragraph (c)(1) of this section, the person who filed such
statement shall promptly file with the Board an amendment disclosing such change.
(o) Restrictions
on control persons: When a person
makes a tender offer for, or a request or invitation for
tenders of, any class of equity securities of a bank
registered pursuant to section 12 of the Act, and such
person has filed a statement with the Board pursuant
to this section, any other person controlling, or controlled by or under common control with ("control
person"), the issuing bank shall not thereafter, during
the period such tender offer, request or invitation
continues, purchase any class of equity securities of
the issuing bank unless:
(1) The control person has filed with the Board a
statement containing the information specified below with respect to any proposed purchases:
(i) The title and amount of equity securities to be
purchased, the names of the persons or classes or
persons from whom, and the market in which, the
securities are to be purchased, including the name
of any exchange on which the purchase is to be
made:
(ii) The purpose for which the purchase is to be
made and any plan or proposal for the disposition
of such securities; and
(iii) The source and amount of funds or other
consideration used or to be used in making the
purchases, and if any part of the purchase price or
proposed purchase price is represented by funds
or other consideration borrowed or otherwise
obtained for the purpose of acquiring, holding, or
trading the securities, a description of the transaction and the names of the parties thereto.
(2) The control person has at any time within the
past 6 months sent or given to the equity security
holders of the issuing bank the substance of the
information contained in the statement required by
172
Federal Reserve Bulletin •
February 1981
paragraph (o)(l) of this section and a copy has been
filed with the Board.
6. Section 206.41 (Form F - l ) is amended by removing
(b) of Item 10 in its entirety.
7. Section 206.42 (Form F-2) is corrected by (a)
changing the word "appropriate" in paragraph (g) of
Item 3 to "approximate" and; (b) adding the phrase
"per share" between the words "and" and "dividends" in the first sentence of instruction (2) to Item 4.
8. Section 206.44 (Form F - 4 ) is corrected by: (a)
removing footnote (1) from Part B; (b) changing the
references in Part C to footnote 2 to footnote 1.
9. Section 206.51 (Form F-5) is amended by (a) removing the phrase "the management of" in Item 3,
paragraphs (1) and (2); (b) removing the word "management" in Item 3(a), paragraph 1, Item 4(a), paragraphs (1) and (2), Item 6 and adding the word "bank"
and; (c) removing the phrase "of management" in
Item 8.
10. Section 206.51 is amended by revising the title of
the section and the Form F - 5 ; paragraph (C) of Item 5
and paragraph (i) of Item 6 is redesignated as paragraph (j) and a new paragraph (i) of Item 6 is added, all
to read as follows:
Section 2106.51—Form for Proxy Statement or
Statement Where the Bank Does Not Solicit
Proxies (Form F-5).
Board of Governors of the Federal Reserve
System
Form F-5.—Proxy Statement or Statement
Where Management Does Not Solicit Proxies
Item 5. ***
(C) If action is to be taken with respect to the election
of directors and if the persons solicited have cumulative voting rights, (1) make a statement that they have
such rights, (2) briefly describe such rights, (3) state
briefly the conditions precedent to the exercise thereof, and (4) if discretionary authority to cumulate votes
is solicited, so indicate.
Item 6. Directors
and Principal
Officers.
(i) Shares voted at last meeting. With respect to those
classes of voting stock which participated in the election of directors at the most recent meeting at which
directors were elected:
(1) State in an introductory paragraph the percentage of shares present at the meeting and voting or
withholding authority to vote in the election of
directors; and (2) disclose in tabular format, following such introductory paragraph, the percentage of
total shares cast for and withhold from the vote for
or, where applicable, cast against, each nominee,
which respectively, were voted for and withheld
from the vote for, or voted against, such nominee.
When groups of classes or series of classes vote
together in the election of a director of directors,
they shall be treated as a single class for the purpose
of the preceding sentence.
Instructions.
(1) Calculate the percentage of shares present at the
meeting and voting or withholding authority to vote in
the election of directors, referred to in paragraph g(l),
by dividing the total shares cast for and withheld from
the vote for or, where applicable, voted against, the
director in respect of whom the highest aggregate
number of shares was cast by the total number of
shares outstanding which were eligible to vote as of
the record date for the meeting.
(2) N o information need be given in response to Item
6(g) unless, with respect to any class of voting stock
(or group of classes which voted together), 5 percent
or more of the total shares cast for and withheld from
the vote for or, where applicable, cast against any
nominee were withheld from the vote for or cast
against such nominee.
(3) If a bank elects less than the entire board of
directors annually, disclosure is required as to all
directors if 5 per cent or more of the total shares cast
for and withheld from, the vote for, or where applicable, cast against any incumbent director were withheld
from, or cast against the vote for such director at the
meeting at which he was most recently elected.
(4) N o information need be given in response to Item
6(g) if the bank has previously furnished to its security
holders a report of the results of the most recent
meeting of security holders at which directors were
elected which includes: (1) A description of each
matter voted upon at the meeting and a statement of
the percentage of the shares voting which were voted
for and against each such matter; and (2) the information which would be called for by this Item 6(g). If a
bank has previously furnished such results to its
security holders, this fact should be set forth in the
bank's cover letter accompanying the filing of preliminary proxy materials with the Board.
Section 206.53—[Redesignated as § 206.81 and
Revised]
11. Section 206.53 (Form F-12) is redesignated as
§ 206.81 (Form F-12) and is revised to read as follows:
Legal Developments
Section 206.81—Form for Statement to be Filed
Pursuant to Section 13(d)(4) of the Securities
and Exchange Act of 1934 (Form F-12)
Board of Governors of the Federal Reserve
System
Form F-12.—Solicitation/Recommendation Statement
Pursuant to Section 14(d)(4) of the Securities Exchange Act of 1934
(Amendment No.)
(Name of Subject Bank)
173
principal executive offices or, if the bidder is a natural
person, the bidder's residence or business address
(which may be based on the bidder's Form F-13
(12 CFR 206.82) filed with the Board).
Item 3. Identity and Background
(a) State the name and business address of the person
filing this statement.
(b) If material, describe any contract, agreement, arrangement or understanding and any actual or potential conflict of interest between the person filing this
statement or its affiliates and: (1) The subject bank, its
executive officers, directors or affiliates; or (2) the
bidder, its executive officers, directors or affiliates.
(Name of Person(s) Filing Statement)
(Title of Class of Securities)
(CUSIP Number of Class of Securities)
(Name, address and telephone number of person authorized to receive
notice and communications on behalf of the person(s) filing statement)
Instructions: Six copies of this statement, including all
exhibits, should be filed with the Board.
General Instructions:
(A) The items numbers and captions of the items shall
be included but the text of the items is to be omitted.
The answers to the items shall be so prepared as to
indicate clearly the coverage of the items without
referring to the text of the items. Answer every item. If
an item is inapplicable or the answer is in the negative
so state.
(B) Information contained in exhibits to the statement
may be incorporated by reference in answer or partial
answer to any item or sub-item of the statement unless
it would render such answer misleading, incomplete,
unclear or confusing. Material incorporated by reference shall be clearly identified in the reference by
page, paragraph, caption or otherwise. An express
statement that the specified matter is incorporated by
reference shall be made at the particular place in the
statement where the information is required. A copy of
any information or a copy of the pertinent pages of a
document containing such information which is incorporated by reference shall be submitted with this
statement as an exhibit and shall be deemed to be filed
with the Board for all purposes of the Act.
Item 1. Security and Subject Company
State the title of the class of equity, securities to which
this statement relates and the name and the address of
the principal executive offices of the subject bank.
Item 2. Tender Offer of the Bidder
Identify the tender offer to which this statement relates, the name of the bidder and the address of its
Instruction: If the person filing this statement is the
subject bank and if the materiality requirement of Item
3(b) if applicable to any contract, agreement, arrangement or understanding between the subject bank or
any affiliate of the subject bank and any executive
officer or director of the subject bank, it shall not be
necessary to include a description thereof in this
statement, or in any solicitation or recommendation
published, sent or given to security holders if such
information, or information which does not differ
materially from such information, has been disclosed
in any proxy statement, report or other communication sent within one year of the filing date of this
statement by the subject bank to the then holders of
the securities and has been filed with the Board:
Provided, That this statement and the solicitation or
recommendation published, sent or given to security
holders shall contain specific reference to such proxy
statement, report or other communication and that a
copy of the pertinent portion(s) thereof is filed as an
exhibit to this statement.
Item 4. The Solicitation or
Recommendation
(a) State the nature of the solicitation or the recommendation. If this statement relates to a recommendation, state whether the person filing this statement is
advising security holders of the securities being sought
by the bidder to accept or reject the tender offer or to
take other action with respect to the tender offer and,
if so, furnish a description of such other action being
recommended. If the person filing this statement is the
subject bank and a recommendation is not being made,
state whether the subject bank is either expressing no
opinion and is remaining neutral toward the tender
offer or is unable to take a position with respect to the
tender offer.
(b) State the reason(s) for the position (including the
inability to take a position) stated in (a) of this Item.
Instruction: Conclusory statements such as "The
tender offer is in the best interest of shareholders,"
174
Federal Reserve Bulletin •
February 1981
will not be considered sufficient disclosure in response
to Item 4(b).
Item 5. Persons Retained, Employed or to be Compensated
Identify any person or class of persons employed,
retained or to be compensated by the person filing this
statement or by any person on its behalf, to make
solicitations or recommendations to security holders
and describe briefly the terms of such employment,
retainer or arrangement for compensation.
Item 6. Recent Transactions and Intent With Respect
to Securities
(a) Describe any transaction in the securities referred
to in Item 1 which was affected during the past 60 days
by the person(s) named in response to Item 3(a) and by
any executive officer, director, affiliate or subsidiary
of such person(s).
(b) To the extent known by the person filing this
statement, state whether the persons referred to in
Item 6(a) presently intend to tender to the bidder, sell
or hold securities of the class of securities being sought
by the bidder which are held of record or beneficially
owned by such person.
Item 7. Certain Negotiations and Transactions by the
Subject Bank
(a) If the person filing this statement is the subject
bank, state whether or not any negotiation is' being
undertaken or is underway by the subject bank in
response to the tender offer which relates to or would
result in:
(1) An extraordinary transaction such as a merger
or reorganization, involving the subject bank, or any
subsidiary of the subject bank;
(2) A purchase, sale or transfer of a material amount
of assets by the subject bank or any subsidiary of the
subject bank;
(3) A tender offer for or other acquisition of securities by or of the subject bank; or
(4) Any material change in the present capitalization or dividend policy of the subject bank.
Instruction. If no agreement in principle has yet been
reached, the possible terms of any transaction or the
parties thereto need not be disclosed if in the opinion
of the Board of Directors of the subject bank such
disclosure would jeopardize continuation of such negotiations. In such event, disclosure that negotiations
are being undertaken or are underway and are in the
preliminary stages will be sufficient.
(b) Describe any transaction, board resolution, agreement in principle, or a signed contract in response to
the tender offer, other than one described pursuant to
Item 3(b) of this statement, which relates to or would
result in one or more of the matters referred to in Item
7(a) (1), (2), (3) or (4).
Item 8. Additional Information to be Furnished
Furnish such additional information, if any, as may be
necessary to make the required statements, in light of
the circumstances under which they are made, not
materially misleading.
Item 9. Material to be Filed as Exhibits
Furnish a copy of:
(a) Any written solicitation or recommendation which
is published or sent or given to security holders in
connection with the solicitation or recommendation
referred to in Item 4.
(b) If any oral solicitation or recommendation to security holders is to be made by or on behalf of the person
filing this statement, any written instruction, or other
material which is furnished to the persons making the
actual oral solicitation or recommendation for their
use, directly or indirectly, in connection with the
solicitation or recommendation.
(c) Any contract, agreement, arrangement or understanding described in Item 3(b) or the pertinent portion^) of any proxy statement, report or other communication referred to in Item 3(b).
Signature. After reasonable inquiry and to the best of
my knowledge and belief, I certify that the information
set forth in this statement is true, complete and
correct.
(Date)
(Signature)
(Name and Title)
Instruction. The original statement shall be signed by
each person on whose behalf the statement is filed or
his authorized representative. If the statement is
signed on behalf of a person by his authorized representative (other than an executive officer of a corporation or bank or a general partner of a partnership),
evidence of the representative's authority to sign on
behalf of such person shall be filed with the statement.
The name and any title of each person who signs the
statement shall be typed or printed beneath his signature.
Section 206.54—[Redesignated as § 206.82 and
Amended]
12. Section 206.54 (Form F-13) is redesignated
§ 206.82 and the title. General Instructions B and C
Legal Developments
and Instruction No. 2 of Item 6 is revised as to read as
follows:
Section 206.82—Statement to be Filed Pursuant
to Section 14(d)(1) of the Securities Exchange
Act of 1934 (Form F-13).
General Instructions.
A.
*
*
*
*
*
B. Information in exhibits to the statement may be
incorporated by reference in answer or partial answer
to any item or sub-item of the statement unless it
would render such answer misleading, incomplete,
unclear or confusing. Material incorporated by reference shall be clearly identified in the reference by
page, paragraph, caption or otherwise. An express
statement that the specified matter is incorporated by
reference shall be made at the particular place in the
statement where the information is required. A copy of
any information or a copy of the pertinent pages of a
document containing such information which is incorporated by reference shall be submitted with this
statement as an exhibit and shall be deemed to be filed
with the Comptroller for all purposes of the Act.
C. If the statement is filed by a partnership, limited
partnership, syndicate or other group, the information
called for by Items 2-7, inclusive, shall be given with
respect to; (i) Each partner of such partnership; (ii)
each partner who is denominated as a general partner
or who functions as a general partner of such limited
partnership; (iii) each member of such syndicate or
group; and (iv) each person controlling such partner or
member. If the statement is filed by a bank or corporation, or if a person referred to in (i), (ii), (iii) or (iv) of
this instruction is a bank or corporation, the information called for by the above mentioned items shall be
given with respect to: (a) Each executive officer and
director of such bank or corporation: (b) each person
controlling such bank or corporation: and (c) each
executive officer and director of any bank or corporation ultimately in control of such bank or corporation.
A response to an item in the statement is required with
respect to the bidder and to all other persons referred
to in this instruction unless such item specifies to the
contrary.
Item 6. Interest in Securities of the Subject
*
*
*
*
*
Bank.
175
Instructions. 1. * * *
2. If the information required by Item 6(b) of this
Form is available to the bidder at the time this statement is initially filed with the Board pursuant to
paragraph (d)(l)(i) of this section, such information
should be included in such initial filing. However, if
such information is not available to the bidder at the
time of such initial filing, it shall be filed with the
Board promptly but in no event later than two business
days after the date of such filing and, if material, shall
be disclosed in a manner reasonably designed to
inform security holders. The procedure specified by
this instruction is provided for the purpose of maintaining the confidentiality of the tender offer in order
to avoid possible misuse of inside information.
13. Section 206.104 is added to read as follows:
206.104—Board Policy Regarding Issuer Tender
Offer and Going Private Transactions
The Board is not proposing to amend Regulation F to
conform it to the Securities and Exchange Commission's "issuer tender offer" regulation. The Board
must approve any reduction in the amount, or the
retirement of any part of a member bank's common or
preferred capital stock pursuant to section 9 of the
Federal Reserve Act. 12 U.S.C. 324(i) (1970). The
Board also notes that issuer tender offers are very rare
among member banks. Therefore, instead of adopting
substantially similar regulations to Rule 13E-4 and
Schedule 13E-101, the Board will withhold its approval to the reduction in the amount of the retirement of
any part of a member bank's equity securities registered under Section 12 of the Act unless the requirements of rules 13e-4 and 13e—101 are met in all
material respects.
Also, the Board is not proposing to amend Regulation F to conform it to the Commission's "going
private" regulations. The Board notes that its supervisory powers under the Federal Reserve Act make
those member bank issuers with classes of equity
securities registered pursuant to Section 12 subject to
more extensive regulatory oversight than most issuers
subject to Commission's jurisdiction. Pursuant to Section 9 of the Federal Reserve Act, the Board must
approve substantially all of the corporate transactions
involving member banks subject to Rule 13e-3. Instead of adopting the Commission's "going private"
regulations the Board will withhold its approval to any
Rule 13e-3 type corporate transaction unless the requirements of rules 13e-3 and 13e-100 are met in all
material respects. See, 45 Federal Register 71575
(Oct. 29, 1980).
176
Federal Reserve Bulletin •
AMENDMENTS
TO REGULATION
February 1981
Q
The Board of Governors has amended its Regulation Q
(Interest on Deposits) to incorporate the rules of the
Depository Institutions Deregulation Committee,
adopted pursuant to the Depository Institutions
Deregulation Act of 1980. The amendments to Regulation Q are technical in nature.
Effective January 15, 1981 Regulation Q is amended
as follows:
1. Section 217.3(f) of Regulation Q (12 CFR Part
217.3(f)) is amended by adding the following:
(f) No interest after maturity
tice. ***
or expiration
of no-
Provided, however, that a member bank may provide
in any time deposit contract that if the deposit, or any
portion thereof, is withdrawn not more than seven
days after a maturity date, interest will be paid thereon
at the originally specified contract rate. A member
bank may specify in the time deposit contract that
interest will be paid at any other lower rate. However,
in no event may the rate specified be less than the
current rate paid on savings deposits by the member
bank.
2. Section 217.4(d) (12 CFR Part 217.4(d)) is revised to
read as follows:
(d) Penalty for early withdrawals.
(l)(i) For time deposit contracts entered into before
July 1, 1979, that have not been renewed or
extended on or after July 1, 1979, the following
minimum early withdrawal penalty shall apply.
Where a time deposit, or any portion thereof, is
paid before maturity, a member bank may pay
interest on the amount withdrawn at a rate not to
exceed that prescribed in § 217.7 for a savings
deposit and, in addition, the depositor shall forfeit
three months of interest payable at such rate. If,
however, the amount withdrawn has remained on
deposit for three months or less, all interest shall
be forfeited.
(ii) For time deposit contracts entered into, renewed, or extended on or after July 1, 1979, but
prior to June 2, 1980, that have not been renewed
or extended on or after June 2, 1980, the following
minimum early withdrawal penalty shall apply:
(A) Where a time deposit with an original maturity or required notice period of one year or
less, or any portion thereof, is paid before
maturity or before the expiration of the required
notice period, a depositor shall forfeit at least
three months of interest on the amount with-
drawn at the rate being paid on the deposit. If
the amount withdrawn has remained on deposit
for less than three months, all interest on the
amount withdrawn shall be forfeited.
(B) Where a time deposit with an original maturity or required notice period of more than
one year, or any portion thereof, is paid before
maturity or before the expiration of the required
notice period, a deposit shall forfeit at least six
months of interest on the amount withdrawn at
the rate being paid on the deposit. If the amount
has remained on deposit for less than six
months, all interest on the amount withdrawn
shall be forfeited. (The provisions of this subparagraph (ii) may be applied, with the consent
of the depositor, to time deposits specified in
subparagraph (i) above.)
(iii) For time deposit contracts entered into, renewed, or extended on or after June 2, 1980, the
following minimum early withdrawal penalty shall
apply:
(A) Where a time deposit with an original maturity or required notice period of less than three
months, or any portion thereof, is paid before
maturity, a depositor shall forfeit an amount at
least equal to the amount of interest that could
have been earned on the amount withdrawn at
the nominal (simple interest) rate being paid on
the deposit had the funds remained on deposit
until maturity.
(B) Where a time deposit with an original maturity or required notice period of three months
or more to one year, or any portion thereof, is
paid before maturity, a depositor shall forfeit an
amount at least equal to three months of interest earned, or that could have been earned, on
the amount withdrawn at the nominal (simple
interest) rate being paid on the deposit, regardless of the length of time the funds withdrawn
have remained on deposit.
(C) Where a time deposit with an original maturity or required notice period of more than one
year, or any portion thereof, is paid before
maturity, a depositor shall forfeit an amount at
least equal to six months of interest earned, or
that could have been earned, on the amount
withdrawn at the nominal (simple interest) rate
being paid bn the deposit, regardless of the
length of time the funds withdrawn have remained on deposit.
(2) Notwithstanding the provisions of paragraph
(d)(1), where a time deposit, or any portion thereof,
maintained in an Individual Retirement Account
established in accordance with 26 U.S.C. § 408 is
paid before maturity within seven days after the
establishment of the Individual Retirement Account
Legal Developments
pursuant to the provisions of 26 CFR § 1.408(l)(d)(4), or where a time deposit, or any portion
thereof, maintained in a Keogh (H.R. 10) Plan
account established in accordance with 26 U.S.C.
§ 401 is paid before maturity within seven days after
the establishment of the Keogh (H.R. 10) Plan, a
depositor shall forfeit an amount at least equal to the
interest earned on the amount withdrawn at the
nominal (simple interest) rate being paid on the
deposit.
(3) A member bank, with the depositor's consent,
may compute the minimum penalty required to be
imposed on withdrawals from time deposits opened
prior to June 2, 1980, on the basis of the nominal
(simple interest) rate.
(4) Where necessary to comply with the requirements of this paragraph, any interest already paid to
or for the account of the depositor shall be deducted
from the amount requested to be withdrawn.
(5) Any amendment of a time deposit contract that
results in an increase in the rate of interest paid or in
a reduction in the maturity of the deposit constitutes
a payment of the time deposit before maturity.
(6) For purposes of computing the penalty required
to be imposed under this paragraph, under a time
deposit agreement that provides that subsequent
deposits reset the maturity of the entire account,
each deposit maintained in the account for at least a
period equal to the original maturity of the deposit
may be regarded as having matured individually and
been redeposited at intervals equal to such period.
When a time deposit is payable only after notice, for
funds on deposit for at least the notice period, the
penalty for early withdrawal shall be imposed for at
least the notice period.
(7) A member bank may permit a depositor to
withdraw interest credited to a time deposit during
any term at any time during such term without
penalty. If the deposit or account is automatically
renewed on the same terms (including at the same
rate of interest), interest credited during the preceding term or terms as well as the renewal term may be
paid at any time during the renewal term without
penalty, unless the deposit agreement specifically
provides otherwise. If the rate of interest paid
during the renewal term or the maturity period of the
renewal term is different, interest in the account at
the commencement of the renewal term shall be
treated as principal, and only interest for the renewal term may be paid at any time without penalty
during such term.
(8) A time deposit, or a portion thereof, may be paid
before maturity without a forfeiture of interest as
prescribed by this paragraph in the following circumstances:
(i) Where a member bank pays all or a portion of
177
a time deposit representing funds contributed to
an Individual Retirement Account or a Keogh
(H.R. 10) Plan established pursuant to 26 U.S.C.
(IRC 1954) §§ 408, 401 when the individual for
whose benefit the account is maintained attains
age 59-V2 or is disabled (as defined in 26 U.S.C.
(IRC 1954) § 72(m)(7)) or thereafter; or
(ii) Where a member bank pays that portion of a
time deposit on which Federal deposit insurance
has been lost as the result of the merger of two or
more Federally insured banks in which the depositor previously maintained separate time deposits, for a period of one year from the date of
the merger.
(9) A time deposit, or the portion thereof requested,
must be paid before maturity without a forfeiture of
interest as prescribed by this paragraph in the following circumstances:
(i) Where requested, upon the death of any owner11 of the time deposit funds; or
(ii) Where requested, when the owner 11 of the
time deposit is determined to be legally incompetent by a court or other administrative body of
competent jurisdiction.
3. Section 217.6 of Regulation Q (12 CFR Part 217.6)
is amended by deleting paragraph (i) and redesignating
paragraph (j) as paragraph (i).
4. Section 217.7 of Regulation Q (12 CFR Part 217.7)
is amended by revising paragraphs (c), (f) and (g) to
read as follows:
Section 217.7—Maximum Rates of Interest
Payable by Member Banks on Time and
Savings Deposits
(c) Savings deposits. N o member bank shall pay interest at a rate in excess of 5- ! / 4 per cent on any savings
deposit. N o member bank shall pay interest at a rate in
excess of 5-!/4 per cent on any savings deposit that is
subject to negotiable orders of withdrawal, the issuance of which is authorized by Federal law.
(f) 26-week money market time deposits of less than
$100,000. Except as provided in paragraphs (a), (b)
and (d), a member bank may pay interest on any
11. For the purposes of this provision, an "owner" of time deposit
funds is any individual who died or was determined to be incompetent
on or after August 1, 1979, and who at the time of his or her death or
determination of incompetence had full legal and beneficial title to all
or a portion of such funds or, at the time of his or her death or
determination of incompetence, had beneficial title to all or a portion
of such funds and full power of disposition and alienation with respect
thereto.
178
Federal Reserve Bulletin •
February 1981
nonnegotiable time deposit of $10,000 or more, with a
maturity of 26 weeks at a rate not to exceed the rates
set forth below:
Rate established (auction average
on a discount basis) for U.S. Treasury
bills with maturities of 26 weeks
issued on or immediately prior to the
date of deposit ("Bill Rate")
Maximum percent
7.50 percent or below
7.75
Above 7.50 percent
Bill Rate plus one-quarter
of one percent
Rounding rates to the next higher rate is not permitted
and interest may not be compounded during the term
of this deposit. A member bank may offer this category
of time deposit to all depositors. However, a member
bank may pay interest on any nonnegotiable time
deposit of $10,000 or more with a maturity of 26 weeks
which consists of funds deposited to the credit of, or in
which the entire beneficial interest is held by:
(1) the United States, any State of the United
States, or any county, municipality or political subdivision thereof, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands,
American Samoa, Guam, or political subdivision
thereof; or
(2) an individual pursuant to an Individual Retirement Account agreement or Keogh (H.R. 10) Plan
established pursuant to 26 U.S.C. (IRC 1954)
§§ 408,401,
at a rate not to exceed the ceiling rate payable on the
same category of deposit by any Federally insured
savings and loan association or mutual savings
bank. 3
(g) Time deposits of less than $100,000 with maturities
of 2-l/2 years or more. Except as provided in paragraphs (a), (b), (d) and (e), a member bank may pay
interest on any nonnegotiable time deposit with a
maturity of 2-V2 years or more that is issued on or
Thursday of every other week at a rate not to exceed
the higher of one-quarter of one per cent below the
average 2-V2 years yield for United States Treasury
securities as determined and announced by the United
3. The ceiling rate of interest payable for this category of deposit by
Federally insured savings and loan associations and mutual savings
banks is 7.75 per cent when the Bill Rate is 7.25 per cent or lower, onehalf of one per cent above the Bill Rate when the Bill Rate is above
7.25 per cent but below 8.50 per cent, 9.00 per cent when the Bill Rate
is 8.50 per cent or above but below 8.75 per cent, and one-quarter of
one per cent above the Bill Rate when the Bill Rate is 8.75 per cent or
above.
States Department of the Treasury immediately prior
to such Thursday, or 9.25 per cent. The average 2-1/2
year yield will be rounded by the United States
Department of the Treasury to the nearest 5 basis
points. Except as provided below, in no event shall the
rate of interest paid exceed 11.75 per cent. A member
bank may offer this category of time deposit to all
depositors. However, a member bank may pay interest on any nonnegotiable time deposit with a maturity
of 2-V2 years or more which consists of funds deposited to the credit of, or in which the entire beneficial
interest is held by:
(1) the United States, any State of the United
States, or any county, municipality or political subdivision thereof, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands,
American Samoa, Guam, or political subdivision
thereof; or
(2) an individual pursuant to an Individual Retirement Account agreement or Keogh (H.R. 10) Plan
established pursuant to 26 U.S.C. (I.R.C. 1954)
§§ 408, 401,
at a rate not to exceed the ceiling rate payable on the
same category of deposit by any Federally insured
savings and loan association or mutual savings bank. 4
*
*
*
*
*
5. Section 217.147 of Regulation Q (12 CFR Part
217.147) is amended to read as follows:
Premiums, Finders Fees, Prepayment of Interest
Payment of Interest in Merchandise.
and
For the regulatory text relating to premiums, finders
fees, prepayment of interest and payment of interest in
merchandise, see 12 CFR §§ 1204.109, 1204.110,
1204.111 and 1204.114.
6. Sections 217.149 and 217.154 of Regulation Q
(12 CFR §§ 217.149 and 217.154) are hereby rescinded.
AMENDMENTS
DELEGATION
TO RULES
OF
REGARDING
AUTHORITY
1. In order to expedite and facilitate the performance
of certain of its functions with respect to applications
and notices under the Bank Holding Company Act,
Bank Merger Act, Federal Reserve Act, International
Banking Act, Federal Reserve Act, and Change of
Bank Control Act, the Board of Governors has delegated to the Director of the Division of Banking
Supervision and Regulation the authority to grant or
4. The ceiling rate of interest payable for this category of deposit by
Federally insured savings and loan associations and mutual savings
banks is one-quarter of one per cent above the rate that may be paid
by member banks.
Legal Developments
deny requests for modification, including extension of
time, to fulfill commitments or conditions relied on by
the Board in acting on such applications.
Effective January 21, 1981, Section 265.2(c) is
amended by adding subparagraph (29) to read as
follows:
Section 265.2—Specific Functions Delegated to
Board Employees and to Federal Reserve
Banks
(c) ***
(29) To grant or deny requests for modification,
including extension of time, for the performance of a
commitment or condition relied on by the Board or
its delegee in taking any action under the provisions
of the Bank Holding Company Act, the Bank Merger Act, the Change in Bank Control Act of 1978, the
Federal Reserve Act or the International Banking
Act. In acting on requests hereunder, the Director
may take into account changed circumstances and
good faith efforts to fulfill the commitments or
conditions, and shall consult with the Directors of
other interested divisions, where appropriate. The
Director may not take any action hereunder that
would be inconsistent with or result in an evasion of
the provisions of the Board's original action.
2. This amendment to the Board's Rules Regarding
Delegation of Authority permits the Director of the
Board's Division of Banking and Supervision and
Regulation to approve applications by a company to
acquire a bank and to permit an individual to acquire a
bank when immediate or expeditious action is necessary.
Effective January 21, 1981, section 265.2(c) is
amended by adding subparagraph (30) to read as
follows:
Section 265.2—Specific Functions Delegated to
Board Employees and to Federal Reserve
Banks
(c) * * *
(30) Under the provisions of § 3(a) of the Bank
Holding Company Act (12 U.S.C. § 1842(a)) and the
Change In Bank Control Act (12 U.S.C. § 1817(j)) to
take actions the Reserve Bank could take under
paragraphs (f)(22) and (f)(30) of this section if imme-
179
diate or expeditious action is required to avert
failure of a bank or because of an emergency.
3. Section 8 of the Securities Exchange Act of 1934
requires nonmember banks wishing to extend credit in
connection with securities transactions to enter into an
agreement with the Board to comply with the provisions of law and the Board's rules in connection with
such extensions of credit. The Board has delegated to
the Federal Reserve Banks authority to receive such
agreements.
Effective January 21, 1981, Section 265.2(f) is
amended by adding subparagraph (53) to read as
follows:
Section 265.2—Specific Functions Delegated to
Board Employees and to Federal Reserve
Banks
^ ***
(53) Under the provisions of section 8(a) of the
Securities Exchange Act of 1934 (15 U.S.C. 78h(a))
concerning extensions of credit to finance securities
transactions, to accept agreements on behalf of the
Board from nonmember banks in the form prescribed by the Board.
4. Section 265.2(f) of the Board's Rules Regarding
Delegation of Authority is hereby amended to eliminate the requirement that Federal Reserve Banks may
approve the application of a State member bank to
establish a branch only if the proposed branch has
already been approved by the appropriate State supervisory authority.
Effective January 21, 1981, paragraph (f)(1) of section 265.2 is revised to read as follows:
Section 265.2—Specific Functions Delegated to
Board Employees and Federal Reserve Banks
^ ***
(1) Under the provisions of the third paragraph of
section 9 of the Federal Reserve Act (12 U.S.C.
§ 321), section 5155 of the Revised Statutes
(12 U.S.C. § 36), and § 208.8 of this chapter (Regulation H), to approve the establishment by a State
180
Federal Reserve Bulletin •
February 1981
member bank of a domestic branch if the Reserve
Bank is satisfied that approval is warranted after
giving consideration to:
(i) the bank's capitalization in relation to the
character and condition of its assets and to its
deposit liabilities and other corporate responsibilities, including the volume of its risk assets and of
its marginal and inferior quality assets, all considered in relation to the strength of its management ;
(ii) the ability of bank's management to cope
successfully with existing or foreseeable problems, and to staff the proposed branch without
any significant deterioration in the overall management situation;
(iii) the convenience and needs of the community;
(iv) the competitive situation (either actual or
potential);
(v) the prospects for profitable operations of the
proposed branch within a reasonable time, and
the ability of the bank to sustain the operational
losses of the proposed branch until it becomes
profitable; and
(vi) the reasonableness of bank's investment in
bank premises after the expenditure for the proposed branch.
*
AMENDMENTS
*
*
TO RULES
*
*
OF
PROCEDURE
The Board of Governors has amended its Rules of
Procedure to permit waiver of public notice and other
procedural rules for applications that require immediate or expeditious action.
Effective January 21, 1981, Rules of Procedure is
amended by adding the following paragraph (1):
Section 262.3—Applications
*
*
*
*
*
(1) Waiver. The Board, or the officer or Reserve Bank
authorized to approve an application, may waive or
modify any procedural requirements for that application prescribed or cited in this section and may excuse
any failure to comply with them upon a finding that
immediate action on the application is necessary to
prevent the probable failure of a bank or company or
that an emergency exists requiring expeditious action.
BANK
HOLDING
ORDERS
ISSUED
COMPANY
AND BANK
BY THE BOARD
OF
MERGER
GOVERNORS
Orders Under Section 3 of
Bank Holding Company Act
Batavia Banc Corporation,
Chicago, Illinois
Order Denying Formation of a Bank Holding
Company
Batavia Banc Corporation, Chicago, Illinois, has applied for the Board's approval under section 3(a)(1) of
the Bank Holding Company Act (12 U.S.C.
§ 1842(a)(1)) of formation of a bank holding company
by acquiring 100 percent of the voting shares of
Batavia Bank, Batavia, Illinois ("Bank").
Notice of the application, affording an opportunity
for interested persons to submit comments and views,
has been given in accordance with section 3(b) of the
Act. The time for filing comments and views has
expired, and the Board has considered the application
and all comments received in light of the factors set
forth in section 3(c) of the Act (12 U.S.C. § 1842(c)).
Applicant, a nonoperating Illinois corporation with
no subsidiaries, was organized for the purpose of
becoming a bank holding company by acquiring Bank,
which holds deposits of $32.5 million. 1 Upon acquisition of Bank, Applicant would control the 427th largest
bank in Illinois and would hold approximately 0.04
percent of the total deposits of commercial banks in
the state.
Bank is the 8th largest of 24 commercial banks in the
Aurora banking market, and holds approximately 4.3
percent of the total deposits in commercial banks in
the market. 2 While Applicant's principals are principals of two other one-bank holding companies, the
banking subsidiaries of these holding companies do
not compete in the relevant banking market. It appears
from the facts of record that consummation of the
proposal would not result in any adverse effects upon
competition or increase the concentration of banking
resources in any relevant area. Accordingly, the Board
concludes that competitive considerations are consistent with approval of the application.
The Board has indicated on previous occasions that
a holding company should serve as a source of finan-
1. All banking data are as of December 31, 1979.
2. The Aurora banking market is approximated by the southern
two-thirds of Kane County and the northern one-third of Kendall
County, including the city of Yorkville, in Illinois.
Legal Developments
cial and managerial strength to its subsidiary bank(s),
and that the Board would closely examine the condition of an applicant in each case with this consideration in mind. In this case, the Board concludes that
the record in this application presents adverse considerations that warrant denial of the proposal to form a
bank holding company.
With regard to financial considerations, the Board
notes that in connection with this proposal, Applicant
would incur a sizeable debt that includes an equity
capital injection of $672,000 into Bank. Applicant
proposes to service this debt over a 25-year period,
and projects reaching a debt-to-equity ratio of less
than 30 percent by the end of the 12th year. Applicant
anticipates that this capital injection and projected
improvements in Bank's earnings will allow Applicant
to service its acquisition debt while maintaining an
adequate capital level in Bank. However, in light of
Bank's historical performance and the performance of
the two banks with which Applicant's principals are
affiliated, Applicant's overall projections are unrealistic; for example, its projections of Bank's earnings are
overly optimistic, while its projections of growth are
low. Thus, based on the record in this case, it is the
Board's view that Bank is unlikely to generate sufficient earnings to enable Applicant to service its debt
while maintaining adequate capital in Bank, as well as
affording Applicant the flexibility to meet any unforeseen problems that might arise at Bank. In light of
these facts and other facts of record, the Board
concludes that considerations relating to Applicant's
financial resources and future prospects weigh against
approval of this application. While managerial considerations are generally satisfactory, it is the Board's
judgment that Applicant's principals have not established a sufficient record of performance to mitigate
the adverse financial considerations of the application.
N o significant changes in Bank's operations or
services are expected to be made as a result of this
proposal. Accordingly, convenience and needs factors
lend no weight toward approval of this application.
On the basis of all of the facts of record, the Board
concludes that the banking considerations involved in
this proposal present adverse factors bearing upon the
financial resources and future prospects of Applicant
and Bank. Such adverse factors are not outweighed by
any procompetitive effects or by benefits that would
result in better serving the convenience and needs of
the community. Accordingly, it is the Board's judgment that approval of the application would not be in
the public interest and the application should be denied.
On the basis of the facts of record, the application is
denied for the reasons summarized above.
181
By order of the Board of Governors, effective
January 30, 1981.
Voting for this action: Vice Chairman Schultz and Governors Wallich, Partee, Teeters, Rice, and Gramley. Absent
and not voting: Chairman Volcker.
( S i g n e d ) JAMES M C A F E E ,
[SEAL]
Assistant
Secretary
of the
Board.
Citicorp,
New York, New York
Order Approving
Acquisition
of Bank
Citicorp, N e w York, N e w York, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board's approval under
section 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to
acquire all of the voting shares of Citibank (South
Dakota), N . A . , Sioux Falls, South Dakota ("Bank"),
a proposed new bank.
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the Act.
The time for filing comments and views has expired,
and the Board has considered the application and all
comments received in light of the factors set forth in
section 3(c) of the Act (12 U.S.C. § 1842(c)).
Citicorp, the largest banking organization in the
state of N e w York, with total consolidated assets of
$111 billion, 1 operates through its two banking subsidiaries, Citibank, N . A . , N e w York, N e w York ("Citibank"), and Citibank (New York State), N . A . , Buffalo, N e w York ("Citibank-Buffalo"), 309 banking
offices in N e w York state and 209 banking offices
abroad. Citicorp also engages in a wide variety of
nonbanking activities in 40 states.
Bank is a newly established bank organized by
Citicorp to engage principally in nationwide consumer
credit card lending activities currently conducted by
Citibank-Buffalo. In addition, Bank will engage in
limited deposit-taking and commercial lending activities. Citicorp proposes to relocate its credit card
activities to South Dakota in light of the absence of
that state of usury ceilings on consumer loan receivables. 2
1. Banking data are as of June 30, 1980.
2. South Dakota law permits commercial banks to charge rates of
interest on consumer loan receivables as agreed by contract. Until
recently, New York law imposed usury ceilings on commercial bank
credit card lending. The Supreme Court, in Marquette National Bank
v. First of Omaha Serv. Corp., 439 U.S. 249 (1978), affirmed the right
of a national bank to charge interest rates to out-of-state credit card
customers at the rate permitted by the law of its home state.
182
Federal Reserve Bulletin •
February 1981
Section 3(d) of the Act (12 U.S.C. § 1842(d)) prohibits the Board from approving any application by a bank
holding company to acquire any bank located outside
of the state in which the operations of the bank holding
company's banking subsidiaries are principally conducted unless such acquisition is "specifically authorized by the statute laws of the state in which such
bank is located, by language to that effect and not
merely by implication." On March 12, 1980, South
Dakota amended its banking laws to permit an out-ofstate bank holding company to acquire a single new
bank located in the state. 3 The statute provides that
such bank may have only a single banking office and
that "such single banking office shall be operated in a
manner and at a location which is not likely to attract
customers from the general public in the state to the
substantial detriment of existing banks in the state." 4
The South Dakota statute further provides that any
acquisition under this provision must be approved by
the South Dakota Banking Commission after consideration of the following factors: (1) whether the convenience and benefit to the public outweigh any adverse
competitive effects; (2) whether the acquisition may
result in undue concentration of resources or substantial lessening of competition; and (3) whether the
location or proposed location of the banking office of
the bank to be acquired is likely to attract the general
public to the substantial detriment of existing banks.
Citicorp has asserted that Bank, in order to comply
with South Dakota law, will not solicit or encourage
personal or commercial deposits or loans from customers in South Dakota; however, Bank will not
refuse such deposits or loans on an unsolicited basis.
Bank will not have facilities to accept savings accounts, although it will have one teller primarily for
the convenience of its employees. Moreover, Bank's
proposed location is not designed to attract customers
from the general public. The South Dakota Banking
Commission, after a hearing on this matter, approved
the application of Citicorp to acquire Bank and found
that the acquisition met the statutory requirements for
approval under South Dakota law. In reviewing the
above facts, the Board has determined that the proposed acquisition is in accord with South Dakota law
3. Chapter 331 (House Bill No. 1370), 1980 South Dakota Session
Laws.
4. The Supreme Court's decision in Lewis v. BT Investment
Managers, Inc., — U.S. —, 100 S. Ct. 2009 (1980), creates some
uncertainty as to the ability of states to limit bank holding company
activities under section 3(d) of the Act. The Court stated that it is
"doubtful" that section 3(d) gives states authority to impose restrictions on bank holding company activities since the only authority
conferred by that section is authority to permit expansion into a state.
The Court's holding striking state restrictions on bank holding company activities, however, applies only to activities conducted pursuant to section 4(c)(8) of the Act, as opposed to section 3 of the Act,
which is applicable here. Accordingly, for purposes of this application, the South Dakota statute is presumed valid on its face.
and, furthermore, that the South Dakota statute specifically authorizes the acquisition of a bank chartered
in South Dakota by an out-of-state bank holding
company as required by section 3(d) of the Act.
In view of the limitations imposed upon the operations of banks acquired under the above-referenced
South Dakota statute and the limited commercial
lending and demand deposit-taking activities that Citicorp proposes for Bank, the Board has considered
whether Bank will operate as a "bank" within the
meaning of section 2(c) of the Act (12 U.S.C.
§ 1841(c)). Section 2(c) defines "bank" to mean any
institution that (1) accepts deposits that the depositor
has a legal right to withdraw on demand, and (2)
engages in the business of making commercial loans.
The preliminary national bank charter granted to Bank
authorizes Bank to engage in the full range of lending
and deposit-taking activities permitted to national
banks.
Citicorp has stated, both as part of its application
and in hearings before the South Dakota Banking
Commission and the Office of the Comptroller of the
Currency, that Bank will accept demand deposits from
credit card merchants, Citicorp subsidiaries, correspondent banks, and accounts resulting from Bank's
overline lending activity. It appears to the Board that
Bank's operations will satisfy the demand deposittaking requirement of section 2(c).
With respect to whether Bank will be deemed to be
engaged in the business of making commercial loans,
Citicorp states that Bank will purchase on a continuing
basis participations in commercial loans made by
Citibank, other bank and nonbank lenders, and also
will make direct commercial loans in states other than
South Dakota. Bank also will participate in overline
loans offered by bank and nonbank financial institutions in South Dakota in accordance with the decision
of the South Dakota Banking Commission approving
Citicorp's application which sought to encourage
Bank's participation in such loans. 5 In light of the facts
in this case and the Board's earlier rulings on this
issue, the Board has determined that Bank's commercial lending activities warrant it being considered as
engaged in the "business of making commercial
loans" within the meaning of section 2(c) of the Act. In
view of the purpose of the Bank Holding Company Act
to "restrain undue concentration of commercial banking resources and to prevent possible abuses related to
the control of commercial credit," 6 the Board believes
that the inclusion of Bank as a "bank" within the
meaning of section 2(c) is in furtherance of the Act's
5. Loan participation purchases are considered by the Board to be
commercial loans made by the purchasing bank if the loans made by
the originating bank are in fact commercial loans.
6. S. Rep. No. 91-1084 (U.S. Code Cong. & Admin. News 5519,
5541 (1970)).
Legal Developments
purposes. Accordingly, the Board is of the opinion
that Bank should be regarded as a "bank" for purposes of the Act.
The proposed acquisition represents a transfer of
Citicorp's existing credit card activities from CitibankBuffalo to Bank. The proposal is thus essentially an
internal reorganization that will not alter the number of
firms or the structure of the national market for bank
credit card services. To the extent that Bank will
purchase participations in commercial loans made by
Citibank, the proposal may further be viewed as an
internal reorganization of Citicorp's business without
competitive effect. Because of the limitations imposed
on Bank's operations by South Dakota law, Bank will
not generally be in direct competition with local commercial banks in the state; however, Bank will engage
de novo in providing some needed banking services in
South Dakota, including overline banking services to
other South Dakota banks, consistent with South
Dakota law. To the extent that Bank will offer banking
services as a new competitor in the market, the effect
of the proposal will be procompetitive. Accordingly,
the overall competitive effects of the proposal are
consistent with approval.
The financial and managerial resources and future
prospects of Citicorp, its subsidiaries and Bank are
regarded as satisfactory. Bank's proposed overline
lending activities should increase the availability of
credit for South Dakota businesses and enhance the
state's capital resources and access to out-of-state
financing sources. Testimony at the administrative
hearings on this matter by both South Dakota bankers
and the Governor of South Dakota indicates that
South Dakota is in need of capital; that need may in
part be alleviated by Bank. Based upon the above facts
and all the evidence of record in this matter, the Board
finds that convenience and needs factors are positive
and lend weight toward approval of the proposal.
On the basis of all the facts of record in this matter, 7
it is the Board's judgment that approval of the applica7. The facts of record in this application include the written
transcripts of hearings held by the South Dakota Banking Commission
on June 10, 1980, and by the Comptroller of the Currency on July 15
and 17, 1980. The Board has received a request for a hearing on the
application by Option Advisory Services, Inc., New York, New York
("Protestant"), asserting that a hearing is required to examine the
legality of the proposal under the McFadden Act and alleged deficiencies in Citicorp's filings with the Securities and Exchange Commission. The Board has determined that Protestant's comments are
without merit and do not present material facts in dispute such as to
warrant a hearing under the Board's Rules of Procedure (12 C.F.R.
§ 262.3(e)). Under section 3(b) of the Act, a hearing is required only if
the primary supervisory agency of the bank to be acquired recommends disapproval. The primary supervisory agency in this case, the
Comptroller of the Currency, has approved the application. Moreover, Protestant's comments and hearing request were not received
by the Board within the 30 day comment period following publication
of notice of the application in the Federal Register and, under the
Board's Rules of Procedure, the Board is not required to consider
them.
183
tion would be in the public interest and that the
application should be approved. On the basis of the
record, the application is approved for the reasons
summarized above. The transaction shall not be made
before the thirtieth calendar day following the effective
date of this Order or later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of N e w York pursuant to
delegated authority.
By order of the Board of Governors, effective
January 19, 1981.
Voting for this action: Chairman Volcker and Governors
Wallich, Partee, Teeters, Rice, and Gramley. Absent and not
voting: Governor Schultz.
( S i g n e d ) JAMES M C A F E E ,
[SEAL]
Assistant
Secretary
of the
Board.
Florida Coast Banks, Inc.,
Pompano Beach, Florida
Order Approving
Acquisition
of Bank
Florida Coast Banks, Inc., Pompano Beach, Florida, a
bank holding company within the meaning of the Bank
Holding Company Act, has applied for the Board's
approval under section 3(a)(3) of the Bank Holding
Company Act (12 U.S.C. § 1842(a)(3)) to acquire 51
percent of the outstanding voting shares of First Bank
and Trust Company of Palm Beach County ("Bank"),
Boynton Beach, Florida.
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the Act.
The time for filing comments and views has expired,
and the application and all comments received, including those from the Florida Comptroller, have been
considered in light of the factors set forth in section
3(c) of the Act (12 U . S . C . § 1842 (c)).
Applicant, the 22nd largest banking organization in
Florida, controls two banks with aggregate deposits of
$211.4 million, representing 0.6 percent of total deposits in commercial banks in the state. 1 Acquisition of
Bank, the 61st largest banking organization in the state
with deposits of $113.7 million, would increase Applicant's share of commercial bank deposits in Florida by
three-tenths of one percent and would not have an
appreciable effect upon the concentration of banking
resources in the state.
1. All banking data are as of June 30, 1979.
184
Federal Reserve Bulletin •
February 1981
Bank is the tenth largest of 27 banking organizations
in the relevant banking market, 2 with 5.14 percent of
deposits in commercial banks in that market. Applicant is currently represented in the relevant banking
market through its recently opened de novo subsidiary
($6.8 million in deposits), the 22nd largest banking
organization in the market, controlling 0.3 percent of
deposits in commercial banks in the market. Acquisition of Bank would increase Applicant's share of
market deposits by 5.1 percent and Applicant would
become the tenth largest banking organization in the
market. Although consummation of the proposal
would eliminate some existing competition between
Bank and Applicant's banking subsidiary, in view of
the relative size of these organizations, their market
shares, and the number of remaining banking alternatives in the market, it appears that consummation of
this proposal would not have seriously adverse effects
upon competition in the relevant market. Accordingly,
in light of the above and other facts of record, the
Board concludes that consummation of the proposed
transaction would have only a slightly adverse effect
on competition in the relevant market.
The financial and managerial resources and future
prospects of Applicant, its subsidiaries, and Bank are
regarded as satisfactory. Although Applicant will incur
debt in connection with the proposed acquisition, it
appears that Applicant will continue to serve as a
source of strength for its subsidiary banks. In addition,
upon consummation of the proposed transaction Applicant will inject capital into Bank, thereby strengthening Bank's financial position. Thus, the Board concludes that banking factors are consistent with
approval of the application. Upon consummation of
the proposed transaction, Applicant would assist Bank
in expanding its services to include specialized lending
services such as accounts receivable financing and
term credits, and provide assistance in developing new
programs such as NOW accounts and automatic teller
machines, which Bank is currently unprepared to
offer. Accordingly, the Board concludes that considerations relating to the convenience and needs of the
community to be served lend weight toward approval
and outweigh any adverse competitive effects associated with this application. Accordingly, it is the
Board's judgment that the proposed acquisition would
be in the public interest and that the application should
be approved.
On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be made before the thirtieth calendar
day following the effective date of this Order or three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Atlanta pursuant to
delegated authority.
By order of the Board of Governors, effective
January 19, 1981.
Voting for this action: Chairman Volcker and Governors
Wallich, Partee, Teeters, Rice, and Gramley. Absent and not
voting: Governor Schultz.
( S i g n e d ) JAMES M C A F E E ,
[SEAL]
Secretary
of the
Board.
Heritage Racine Corporation,
Racine Wisconsin
Order Approving
Company
Formation
of a Bank
Holding
Heritage Racine Corporation, Racine, Wisconsin, has
applied for the Board's approval under section 3(a)(1)
of the Act (12 U . S . C . § 1842(a)(1)) of formation of a
bank holding company by acquiring 80 percent or
more of the voting shares of Heritage Bank and Trust
("Wind Point Bank"), Heritage National Bank of
Racine ("Racine Bank"), and Heritage Bank-Mt.
Pleasant ("Mt. Pleasant Bank"), all located in Racine,
Wisconsin (collectively referred to as "Banks"). 1
Notice of the application, affording opportunity for
interested persons to submit comments, has been
given in accordance with section 3(b) of the Act. The
time for filing comments has expired, and the Board
has considered the application and all comments received, including those of Bank of Elmwood, Racine,
Wisconsin ("Protestant"), in light of the factors set
forth in section 3(c) of the Act (12 U.S.C. § 1842(c)).
Applicant is a nonoperating corporation with no
subsidiaries, organized for the purpose of becoming a
bank holding company through the acquisition of
Banks, which have aggregate deposits of $107.6 million, 2 representing 0.5 percent of total deposits in
commercial banks in Wisconsin, and 19.8 percent of
the total deposits in commercial banks in the Racine
banking market. 3 Upon consummation of this proposal, Applicant would be the 18th largest banking organi-
1. Applicant proposes to acquire 82.2 percent of Wind Point Bank;
94.2 percent of Racine Bank; and 84.0 percent of Mt. Pleasant Bank.
2. Banking data are as of December 31, 1979, except as otherwise
noted.
3. Banks are all located in the Racine banking market, which is
approximated by the Racine Ranally Metro Area (RMA). See Heritage
2. The relevant banking market, the eastern Palm Beach banking
market, is approximated by all of Palm Beach County excluding the
Belle Glade area.
Assistant
Racine
Corporation,
66
FEDERAL
RESERVE
BULLETIN
419
(1980). On April 21, 1980, the Board denied a proposal by Applicant to
acquire, in addition to the three banks now proposed to be acquired, a
fourth bank, also located in the Racine market, not controlled by
Applicant's principals.
Legal Developments
zation the state and the second largest banking organization in the Racine market.
This proposal involves a restructuring of Banks'
ownership from individuals to a corporation owned
substantially by those same individuals. Applicant's
principals, Mr. Samuel C. Johnson and members of his
immediate family, currently control each of Banks.
Wind Point Bank controls deposits of $68.0 million,
representing 12.4 percent of total market deposits ; Mt.
Pleasant Bank controls deposits of $21.3 million, representing 3.9 percent of market deposits; and, Racine
Bank controls deposits of $21.9 million, representing
4.0 percent of market deposits. Applicant's principals
organized Wind Point Bank as a new bank in 1970, and
in 1974 organized Mt. Pleasant Bank, also as a new
bank. In 1976, Applicant's principals acquired Racine
Bank, an existing bank. The Johnson family currently
controls 70 percent or more of the outstanding shares
of each of the three banks, and there are numerous
director and officer interlocks between these banks. In
view of these relationships, it appears that no meaningful competition currently exists between Banks
and, accordingly, that consummation of the proposal
would not eliminate any existing competition between
the three banks.
In analyzing the competitive effects of an application to form a bank holding company where an individual or group of individuals, controlling in a personal
capacity more than one bank in a relevant banking
market, seeks to transfer control of one or more of the
banks to a holding company, the Board takes into
consideration the competitive effects of the transaction whereby common ownership was established between the banks in the market. 4 At the time of their
acquisition of Racine Bank in 1976, Applicant's principals also controlled Wind Point Bank and Mt. Pleasant
Bank, both of which had been organized de novo a few
years earlier. Viewed as a single banking organization
because of substantial common control, Wind Point
Bank and Mt. Pleasant Bank together held aggregate
deposits of $56.3 million, representing 12.9 percent of
total market deposits. 5 Racine Bank then controlled
deposits of $11.9 million, representing 2.7 percent of
total market deposits. The acquisition of Racine Bank
by Applicant's principals only modestly increased the
share of total market deposits then held by Applicant's
principals and would not have exceeded the Department of Justice Merger Guidelines. 6 On the basis of all
of the facts of record concerning competition in the
relevant banking market at the time of the acquisition
4. E.g., Mid-Nebraska Banc shares, Inc., 64 FEDERAL RESERVE
BULLETIN 589 (1978), aflfd sub nom. Mid-Nebraska Bancshares, Inc.
v. Board of Governors, 627 F.2d. 266 (D.C. Cir. 1980).
5. Deposit data relating to Banks at the time Racine Bank was
acquired by the Johnson family are as of December 31, 1975.
6. 1 CCH Trade Reg. Rep. 11 4510.
185
of Racine Bank in 1976 by Applicant's principals,
including the size of the banks involved and the
number of banks remaining as attractive entry vehicles
for holding companies not represented in the market,
the Board concludes that the acquisition of Racine
Bank by Applicant's principals had only a slightly
adverse effect on existing competition at the time. 7
The seriousness of this adverse effect is even further
mitigated, in the Board's view, by the fact that the
entry and initial expansion in the Racine market by
Applicant's principals were accomplished by the organization of de novo banks, thereby increasing competition in the market at the time.
The financial and managerial resources and future
prospects of Applicant and Banks appear to be generally satisfactory. In view of certain commitments
made by Applicant to increase Banks' capital and
certain other commitments made by Mr. Johnson,
banking factors lend some weight toward approval. 8 In
reaching this conclusion, the Board has considered
Protestant's allegations that Banks are controlled by
S. C. Johnson & Son, Inc. ("Johnson Wax"), Racine,
Wisconsin, a producer of industrial and household
chemicals privately owned by the Johnson family, in
violation of the Act. Protestant has requested that the
Board order a hearing to investigate the relationships
between Johnson Wax and Banks. The Board has
previously determined that a violation of law, in some
circumstances, may reflect so adversely upon managerial factors as to warrant denial of an application under
section 3 of the Act. 9
Protestant's allegation that Johnson Wax controls
Banks is based in large part on the fact that a majority
of the directors of Wind Point Bank and Mt. Pleasant
Bank are officers of Johnson Wax, as are three of the
nine directors of Racine Bank. It appears that Protes7. Protestant alleges that the acquisition of Racine Bank by Applicant's principals eliminated substantial competition and that consummation of this proposal would further an anticompetitive arrangement.
Protestants rely on the Board's decision in Eicher Bancorporation, 64
FEDERAL RESERVE BULLETIN 399 (1978). However, the Board finds
that the proposal in that case differs significantly from the proposal
here. Contrary to the proposal here, the increase in share of total
market deposits resulting from the acquisition by the Applicant's
principal in Eicher of another bank in the relevant market exceeded
the Justice Department Merger Guidelines. In addition, the relevant
market involved in Eicher contained fewer and smaller banks than the
Racine market. Thus, the anticompetitive effects of the acquisition of
another bank by the applicant's principal in Eicher was likely to be
more serious. Finally, in Eicher, the Board found, in addition to
anticompetitive effects, that considerations relating to financial and
managerial resources weighed against approval of the application.
8. In the Board's denial of Applicant's previous application to
become a bank holding company (see supra, n.3), the Board found
that considerations relating to banking factors weighed against approval of the application. This finding relates only to the previous
proposal to acquire four banks, while Applicant now proposes to
acquire only three banks.
9. E.g., Florida National Banks of Florida, Inc. (Citizens Bank of
Bunnell), 62 FEDERAL RESERVE BULLETIN 696, 698 (1976); Seilon,
Inc.,
63 FEDERAL RESERVE BULLETIN 156, 157-158 (1977).
186
Federal Reserve Bulletin •
February 1981
tant's allegations, even if accepted as true, would not
reflect so adversely on the integrity of Applicant's
managment as to warrant denial of the application for
adverse managerial resources. The record indicates
that Johnson Wax owns no shares of any of Banks,
and that Mr. Johnson and his immediate family own
and control both Johnson Wax and Banks in their
personal capacities. Thus it seems clear from the
record that Applicant's principals, by reason of their
personal stock ownership, control the election of the
directors of Banks. The Bank Holding Company Act
restricts control of banks and nonbanks by a company;
the Act does not prohibit an individual from controlling in his or her personal capacity both a bank and a
nonbank company. 1 0
Protestant also alleges that Banks are used to benefit
Johnson Wax. For example, Protestant claims that
Banks give preferential treatment to employees of
Johnson Wax. After a review of the record, the Board
finds that there is no evidence of substance to support
these allegations.
Since Banks' primary supervisory authorities have
not requested a hearing on the application, the Board
is not required to conduct one. 1 1 For the reasons
stated above, the Board does not believe that a hearing
would resolve issues of fact material to this application. Accordingly, Protestant's request for a hearing is
denied.
It appears that affiliation of Banks with Applicant
would allow Banks to be operated more efficiently and
would afford them additional managerial and financial
flexibility, thereby allowing Banks to better serve their
commercial and other customers. It is the Board's
judgment that convenience and needs considerations
lend weight toward approval, and together with banking factors, are sufficient to outweigh the slightly
adverse competitive effects associated with this proposal.
Based on the foregoing and other considerations
reflected in the record, it is the Board's judgment that
the proposed acquisitions are in the public interest and
that the application should be approved.
On the basis of the record, the application is approved for the reasons summarized above. The transactions shall not be made before the thirtieth calendar
day following the effective date of this Order or later
than three months after the effective date of this
10. Protestant's other allegations in this regard do not warrant
denial of this proposal. The incidental services allegedly provided by
Johnson Wax to Banks would not permit Johnson Wax to exercise
such a significant influence over the management and operations of
Banks as to result in control of the institutions. In addition, to the
extent that the granting to Mr. Johnson of a right of first refusal with
respect to Applicant's shares evidences any control over Applicant,
such control would be exercised by Mr. Johnson, not by Johnson
Wax.
11. E.g., Farmers and Merchants Bank of Las Cruces v. Board of
Governors, 567 F.2d 1082 (D.C. Cir. 1977).
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of
Chicago pursuant to delegated authority.
By order of the Board of Governors, effective
January 29, 1981.
Voting for this action: Chairman Volcker and Governors
Wallich, Partee, Teeters, Rice, and Gramley. Absent and not
voting: Governor Schultz.
( S i g n e d ) JAMES M C A F E E ,
[SEAL]
Assistant
Secretary
of the
Board.
Union De Inversion Mobiliaria, S.A.,
Madrid, Spain
Banco Occidental, S.A.,
Madrid, Spain
TBK-Inversiones, S.A.,
Madrid, Spain
Compagnie de Gestion BelgoLuxembourgeoise, S.A.,
Luxembourg
Order Approving
Companies
Formation
of Bank
Holding
Union de Inversion Mobiliaria, S.A., Banco Occidental, S.A., and TBK-Inversiones, S.A., all of Madrid,
Spain, and Compagnie de Gestion Belgo-Luxembourgeoise, S.A. ("Cogebel"), Luxembourg, have applied
for the Board's approval under section 3(a)(1) of the
Bank Holding Company Act (12 U.S.C. § 1842(a)(1))
of formation of bank holding companies by the acquisition of 64.1 percent of the voting shares of Banco
Comercial de Mayaguez ("Bank"), Mayaguez, Puerto
Rico. Most of these shares would be held by Cogebel,
which is a direct or an indirect subsidiary of each of
the other applicants.
Notice of the applications, affording opportunity for
interested persons to comment, has been given in
accordance with section 3(b) of the Act, and the time
for filing comments has expired. The Board has considered the applications and all comments received in
light of the factors set forth in section 3(c) of the Act.
Applicants belong to the Occidental group of companies that is based in Spain and controlled by Gregorio Diego Jimenez. Their combined assets approximate $1.2 billion. 1 Except for Banco Occidental the
Applicants are nonoperating holding companies.
Banco Occidental is the 20th largest of 38 privately
owned "national banks" in Spain and is the 11th
1. Banking data are as of September 30, 1978.
Legal Developments
largest of 24 national banks classified as "industrial
banks." As an industrial bank Banco Occidental
serves individuals and small- to medium-size businesses through 37 offices in Spain. Banco Occidental
also conducts a commercial banking business through
its indirect subsidiary, Banco Comercial Occidental,
S.A. Combined these two institutions operate 96 offices in Spain and rank 19th of 109 Spanish commercial
and industrial banking organizations. 2 Banco Occidental holds interests in a variety of other companies,
most of which are located in Spain. None of the
Applicants engages in any business activity in the
United States directly or indirectly, and under rules
the Board recently adopted (45 Federal
Register
81,537 (1980)), to be codified as (12 C.F.R. § 211.23), if
the proposed transaction is consummated Applicants
would be qualified foreign banking organizations eligible for the exemptions prescribed by those rules.
Bank is the 12th largest of 16 banking organizations
in Puerto Rico and the 8th largest of 11 banks domiciled there. Bank operates five offices, serving primarily a retail clientele, and holds deposits of $88 million,
representing 8.1 percent of the deposits in commercial
banks in Puerto Rico. 3 Banco Occidental maintains a
representative office in San Juan, Puerto Rico, conducting a wholesale internationally oriented business,
but it appears that consummation of this proposal
would not have any substantial adverse effects on
competition or concentration in any relevant area.
Competitive considerations are therefore consistent
with approval of these applications.
Applicants have been associated with Bank since
1974 when members of the Occidental group bought a
minority interest in Bank, as permitted by the Act, and
they have been represented on Bank's board of directors since 1975. In December 1977, however, the
nature of Applicants' association with Bank changed
dramatically. At that time members of the Occidental
group of companies provided Bank capital funds the
Federal Deposit Insurance Corporation and the Secretary of the Treasury of the Commonwealth of Puerto
Rico considered necessary to alleviate financial difficulties Bank was then experiencing. As a result of the
increase in Bank's capital, Applicants' voting interest
in Bank increased to 23 percent, and an additional 47
percent of Bank's shares were issued to Patricio
Ruedas, a friend of Mr. Diego. On the basis of this
ownership interest Mr. Diego assumed effective control of Bank and exercised that control chiefly through
2. It is Banco Occidental's intention formally to absorb this subsidiary, the operations of which have already been largely integrated with
Banco Occidental's. In furtherance of this plan, all but three of Banco
Comercial Occidental's offices were transferred to Banco Occidental
on December 29, 1980.
3. Since the date of these data, Bank has received approval to
establish a sixth office.
187
employees and former employees of Banco Occidental
and Banco Comercial Occidental.
In several respects the 1977 acquisition of Bank's
shares superficially resembled transactions the Board
has considered violations of the Act by companies
acquiring bank shares indirectly or through individuals
without the Board's prior approval. 4 However, because of the unusual circumstances and the very
compelling public interest in the consummation of this
transaction, even if the Board concluded that Applicants had violated the Act in 1977, it would not be
compelled to deny these applications on that account.
In the first place, upon inquiry Applicants were led to
believe, and continue to believe, that the Board's
approval was not required for Mr. Ruedas' acquisition. It is Applicants' contention that Mr. Ruedas'
acquisition was made for Mr. Diego personally and not
on behalf of any of the Occidental companies. Moreover, Applicants cooperated with Bank's primary supervisors and have cooperated with the Board's staff,
and they have established an internal management
compliance and reporting system and submitted to the
Board thorough undertakings designed to insure that
they will remain aware of and in compliance with laws
and regulations applicable to them as bank holding
companies and as a result of their operations in Puerto
Rico.
It is also clear from Applicants' conduct both before
and after the 1977 acquisition that their intention at all
times has been to adhere to applicable rules and
appropriate standards of conduct. Finally, the assistance Applicants have extended to Bank has been of
value in preserving Bank as a viable competitor in
Puerto Rico, and the consequences of requiring a
divestiture of Bank could be particularly damaging in
that respect. This combination of circumstances persuades the Board that even if Applicants were found to
have violated the Act, that factor would not by itself
require denial of the applications.
If any of these circumstances had been different, the
Board would be disposed to go forward and adjudicate
the question whether Applicants, acting through Mr.
Ruedas, acquired control of Bank in violation of the
Act. A bare claim of ignorance would obviously have
been an unsatisfactory explanation of a violation of the
Act. The Board expects companies to ascertain and
meet their legal responsibilities under the Act with the
greatest care and will hold them answerable for a
failure to do so. An adjudication of the question in
these circumstances, however, will not have a material
bearing on the disposition of these applications or
other regulatory actions by the Board.
4. See, e.g., First National Holding Corp., 63 FEDERAL RESERVE
BULLETIN 929 (1977).
188
Federal Reserve Bulletin •
February 1981
Applicants' financial and managerial resources and
future prospects are regarded as satisfactory, and
since 1977 Bank's condition has improved steadily
under Mr. Diego's direction. Applicants and Mr.
Diego have shown a willingness to supply to Bank
capital and managerial support as needed and the
Board has reason to believe that Applicants will continue to serve as a source of strength to Bank in the
future. 5 The support Bank has received from Mr.
Diego and Applicants has preserved the institution as a
competitor in Puerto Rico and enabled it to expand its
service to its community. Banking factors and considerations relating to the convenience and needs of the
communities Bank serves therefore lend weight toward approval of these applications, and it is the
Board's judgment that consummation of the proposal
would be in the public interest.
In reaching this conclusion the Board has given due
consideration to comments received from a group of
Bank's minority shareholders which chiefly is dissatisfied with the method by which directors of Bank are
chosen. 6 The protestants concede that the majority
shareholders have afforded minority shareholders appropriate representation in every annual election of
ORDERS
APPROVED
UNDER
BANK
HOLDING
Bank's directors, and whether the majority shareholders are obliged to do more than that, as the minority
group contends, is a question of contract interpretation that should appropriately be resolved in another
forum. It is not established, based on the record in this
case, that the existence of this dispute with several of
Bank's minority shareholders reflects adversely on
Applicants' intentions or their managerial resources.
On the basis of the record, the applications are
approved for the reasons summarized above. 7 The
transaction shall not be made before the thirtieth
calendar day following the effective date of this Order
or later than three months after the effective date of
this Order unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
N e w York pursuant to delegated authority.
By order of the Board of Governors, effective
January 27, 1981.
Voting for this action: Chairman Volcker and Governors
Wallich, Partee, Teeters, Rice, and Gramley. Absent and not
voting: Vice Chairman Schultz.
( S i g n e d ) JAMES M C A F E E ,
[SEAL]
COMPANY
Assistant
Secretary
of the
Board.
ACT
By the Board of Governors
During January 1981, the Board of Governors approved the applications listed below. Copies are available upon
request to Publications Services, Division of Support Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 3
Applicant
Bank(s)
Cameron Investment Company, Inc.
Park Falls, Wisconsin
First American Corporation,
Kalamazoo, Michigan
First City Bancorporation of Texas, Inc.,
Houston, Texas
First City Bancorporation of Texas, Inc.,
Houston, Texas
Willmar Bancorporation, Inc.,
Willmar, Minnesota
Bank of Cameron,
Cameron, Wisconsin
The First National Bank of Alger County,
Munising, Michigan
Valley View Bank,
Dallas, Texas
The Bank of South Texas,
Alice, Texas
Citizens National Bank of Willmar,
Willmar, Minnesota
5. Applicants will not consummate this proposal before Cogebel's
capital has been increased to 310 million Luxembourg francs (approximately $10 million).
6. Horacio M. Royo also made the Board aware of litigation he
instituted against Bank, which has no apparent bearing on the merits
of these applications. There are no facts in the record from which the
Board action
(effective date)
January 16, 1981
January 30, 1981
January 26, 1981
January 29, 1981
January 30, 1981
Board might conclude that the Board's action on these applications
could affect Mr. Royo or his interests or the litigation to which he is a
party.
7. As part of these applications, Applicants have agreed to continue
to provide information the Board considers necessary for the proper
discharge of its supervisory responsibilities.
Legal Developments
189
S e c t i o n s 3 and 4
Applicant
Financial Bancshares Company,
Becker, Minnesota
Nonbanking
company (or
activity)
Bank(s)
Santiago State Bank,
Santiago, Minnesota
to engage in general
insurance activities
in three communities
with populations not
exceeding 5,000
Reserve
Bank
Effective
date
Minneapolis
1/15/81
By Federal Reserve Banks
R e c e n t applications h a v e b e e n approved by the Federal R e s e r v e Banks as listed b e l o w . C o p i e s of
the orders are available u p o n request to the R e s e r v e Banks.
Section 3
Applicant
Anadarko Bancshares, Inc.,
Anadarko, Oklahoma
Anchor Bancorporation Inc.,
Farmer City, Illinois
Anchor Banshares, Inc.,
Alliance, Nebraska
Borresen Investments, Inc.,
Westbrook, Minnesota
Burr Oak Banco, Inc.,
Burr Oak, Kansas
Childress Bancshares, Inc.,
Childress, Texas
Choctaw Bancorp, Inc.,
Choctaw, Oklahoma
Colorado National Bankshares,
Inc.,
Denver, Colorado
Commerce Southwest Inc.,
Dallas, Texas
Connecticut River Bancorp, Inc.,
Charlestown, New
Hampshire
Denver City Bancshares, Inc.,
Denver City, Texas
Echo Bancshares, Inc.,
Echo, Minnesota
Bank(s)
Anadarko Bank and Trust
Company,
Anadarko, Oklahoma
Anchor State Bank,
Anchor, Illinois
The Anchor Bank,
Merriman, Nebraska
Westbrook State Bank,
Westbrook, Minnesota
The Burr Oak State Bank,
Burr Oak, Kansas
The First National Bank in
Childress,
Childress, Texas
Choctaw State Bank,
Choctaw, Oklahoma
Arvada State Bank,
Arvada, Colorado
Central National Bank of
McKinney,
McKinney, Texas
White Rock Bank of Dallas,
Dallas, Texas
Peoples National Bank of
Littleton,
Littleton, New Hampshire
Yoakum County Bancshares,
Inc.,
Denver City, Texas
Citizens State Bank of Echo,
Echo, Minnesota
Reserve
Bank
Effective
date
Kansas City
December 24, 1980
Chicago
January 14, 1981
Kansas City
December 26, 1980
Minneapolis
January 26, 1981
Kansas City
December 26, 1980
Dallas
January 2, 1981
Kansas City
January 22, 1981
Kansas City
December 30, 1980
Dallas
January 20, 1981
Boston
January 14, 1981
Dallas
January 8, 1981
Minneapolis
January 14, 1981
190
Federal Reserve Bulletin •
February 1981
Section 3—continued
Applicant
Elgin Bancshares, Inc.,
Kansas City, Missouri
Elston Corporation,
Crawfordsville, Indiana
Etowah Bancing Company,
Etowah, Tennessee
Everly Bancorporation,
Everly, Iowa
F & M Holding Company,
Summersville, West Virginia
Federated Bancshares, Inc.,
Otterville, Missouri
Fifth Third Bancorp,
Cincinnati, Ohio
First Citizens Bancshares, Inc.,
Waxahachie, Texas
FIRST NATIONAL
BANCORP.,
New Castle, Indiana
First Southern Bancshares, Inc.,
Mount Juliet, Tennessee
First State Holding Company of
Pre scott,
Prescott, Arkansas
First United, Inc.,
Central City, Kentucky
First United Bancorporation,
Inc.,
Fort Worth, Texas
Georgia Bancshares, Inc.,
Macon, Georgia
Golden Summit Corporation,
Milton, Florida
Hardin County Bancorporation,
Eldora, Iowa
The Highland Ban-Corp., Inc.,
Cleveland, Oklahoma
Independent Bank Corporation,
Ionia, Michigan
Jersey Village Bancshares, Inc.,
Houston, Texas
Mercantile Bancorporation Inc.,
St. Louis, Missouri
Bank(s)
Union National Bank and Trust
Company of Elgin,
Elgin, Illinois
Elston Bank & Trust Company
Crawfordsville, Indiana
Southern United Bank of
McMinn County,
Etowah, Tennessee
Everly State Bank,
Everly, Iowa
Farmers and Merchants Bank of
Summersville,
Summersville, West
Virginia
The Bank of Otterville,
Otterville, Missouri
The Farmers Bank,
West Union, Ohio
Citizens National Bank in
Waxahachie,
Waxahachie, Texas
First National Bank in New
Castle,
New Castle, Indiana
Bank of Mount Juliet,
Mount Juliet, Tennessee
Bank of Prescott,
Prescott, Arkansas
First National Bank of Central
City,
Central City, Kentucky
The Southwest State Bank,
Brown wood, Texas
The Farmers National Bank of
Monticello,
Monticello, Georgia
Santa Rosa State Bank,
Milton, Florida
Hardin County Savings Bank of
Eldora Iowa,
Eldora, Iowa,
The Cleveland Bank,
Cleveland, Oklahoma
The Peoples Bank of Leslie,
Leslie, Michigan
Jersey Village Bank,
Houston, Texas
Peoples Bank of Kansas City
Kansas City, Missouri
Reserve
Bank
Effective date
Chicago
January 9, 1981
Chicago
January 14, 1981
Atlanta
January 9, 1981
Chicago
January 13, 1981
Richmond
January 14, 1981
Kansas City
December 22, 1980
Cleveland
January 19, 1981
Dallas
January 16, 1981
Chicago
January 16, 1981
Atlanta
January 23, 1981
St. Louis
December 29, 1980
St. Louis
January 12, 1981
Dallas
December 30, 1980
Atlanta
January 27, 1981
Atlanta
December 29, 1980
Chicago
January 16, 1981
Kansas City
January 13, 1981
Chicago
January 16, 1981
Dallas
January 12, 1981
St. Louis
January 13, 1981
Legal Developments
191
Section 3—continued
Applicant
Metro BancShares, Inc.,
Alvarado, Texas
Metropolitan Bancorporation,
Tampa, Florida
Michigan National Corporation,
Bloomfield Hills, Michigan
Middle River Bancshares, Inc.,
Middle River, Minnesota
New Salem Bancorporation, Inc.
New Salem, North Dakota
Mulvane Bankshares, Inc.,
Mulvane, Kansas
Northern Bancshares, Inc.,
Chillicothe, Texas
Orient Bancorporation,
San Francisco, California
PTD Bancorp., Inc.,
Potosi, Wisconsin
Pike Bancshares, Inc.,
Petersburg, Indiana
Planters Holding Company,
Indianola, Mississippi
Republic of Texas Corporation,
Dallas, Texas
Sahara Bancorp, Inc.,
New Brighton, Minnesota
Savannah Bancshares, Inc.,
Savannah, Missouri
Schertz Bancshares Corporation,
Shertz, Texas
Security State Holding Company,
Lindstrom, Minnesota
South Georgia Bankshares Corp.,
Lyons, Georgia
South Dakota Bancshares, Inc.,
Pierre, South Dakota
Strong City Banco, Inc.,
Lincoln, Nebraska
Bank(s)
Alvarado State Bank,
Alvarado, Texas
First Bank and Trust Company,
Belleair Bluffs, Florida
Michigan National
Bank—Grosse Pointe,
Grosse Pointe Woods,
Michigan
First National Bank of Middle
River,
Middle River, Minnesota
Security State Bank of New
Salem,
New Salem, North Dakota
The Mulvane State Bank,
Mulvane, Kansas
The First National Bank of
Chillicothe,
Chillicothe, Texas
Bank of the Orient,
San Francisco, California
Potosi State Bank,
Potosi, Wisconsin
The First National Bank of
Petersburg,
Petersburg, Indiana
Planters Bank & Trust
Company,
Ruleville, Mississippi
Houston National BankKingwood,
Kingwood, Texas
Houston National Bank West,
Houston, Texas
First State Bank of New
Brighton,
New Brighton, Minnesota
First Community State Bank of
Savannah,
Savannah, Missouri
Schertz Bank & Trust,
Schertz, Texas
Security State Bank of
Lindstrom,
Lindstrom, Minnesota
The Peoples Bank of Lyons,
Lyons, Georgia
Sully County Bank,
Onida, South Dakota
Strong City State Bank,
Strong City, Kansas
Reserve
Bank
Effective date
Dallas
January 15, 1981
Atlanta
January 27, 1981
Chicago
January 15, 1981
Minneapolis
December 30, 1980
Minneapolis
December 30, 1980
Kansas City
January 19, 1981
Dallas
December 31, 1980
San
Francisco
Chicago
January 14, 1981
St. Louis
January 13, 1981
St. Louis
January 8, 1981
Dallas
January 9, 1981
Minneapolis
January 23, 1981
Kansas City
January 9, 1981
Dallas
January 9, 1981
Minneapolis
January 15, 1981
Atlanta
December 31, 1980
Minneapolis
January 7, 1981
Kansas City
December 19, 1980
January 2, 1981
192
Federal Reserve Bulletin •
February 1981
Section 3—continued
Bank(s)
Applicant
The Summitt Bancorporation,
Summit, New Jersey
Sweet Springs Bancshares, Inc.,
Sweet Springs, Missouri
Tri-County Bancorp.,
Roachdale, Indiana
Union Bancshares, Incorporated,
San Antonio, Texas
Union Bank Corporation,
Upton, Wyoming
United Mercantile Bancshares,
Inc.,
Shreveport, Louisiana
United Banks of Colorado, Inc.,
Denver, Colorado
United Banks of Colorado, Inc.,
Denver, Colorado,
West Brook Bancshares, Inc.,
Westchester, Illinois
PENDING
CASES INVOLVING
Effective
date
The Maplewood Bank and Trust
Company,
Maplewood, New Jersey
Chemical Bank,
Sweet Springs, Missouri
Tri-County Bank & Trust
Company,
Roachdale, Indiana
Union State Bank,
San Antonio, Texas
Union State Bank,
Upton, Wyoming
United Mercantile Bank,
Shreveport, Louisiana
New York
January 8, 1981
Kansas City
January 23, 1981
Chicago
January 20, 1981
Dallas
January 2, 1981
Kansas City
December 26, 1980
Dallas
January 26, 1981
Bank of Durango,
Durango, Colorado
Bank of Ignacio
Ignacio, Colorado
West Brook Bank,
Westchester, Illinois
Kansas City
January 20, 1981
Kansas City
January 20, 1981
Chicago
January 26, 1981
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.
Wilshire Oil Company of Texas v. Board of Governors, et al., filed U.S.D.C. for New Jersey.
9 to 5 Organization for Women Office Workers v.
Board
of Governors,
filed
December 1980,
U.S.D.C. for the District of Massachusetts.
Wilshire Oil Company of Texas v. Board of Governors, filed December 1980, U.S.C.A. for the District
of Columbia.
Securities Industry Association v. Board of Governors, et al., filed October 1980, U.S.D.C. for the
District of Columbia.
Securities Industry Association v. Board of Governors, et al., filed October 1980, U.S.C.A. for the
District of Columbia.
A. G. Becker, Inc. v. Board of Governors, et al., filed
October 1980, U.S.D.C. for the District of Columbia.
A. G. Becker, Inc. v. Board of Governors, et al., filed
October 1980, U.S.C.A. for the District of Columbia.
Reserve
Bank
Independent Insurance Agents of America and Independent Insurance Agents of Missouri v. Board of
Governors, filed September 1980, U.S.C.A. for the
Eighth Circuit.
Independent Insurance Agents of America and Independent Insurance Agents of Virginia v. Board of
Governors, filed September 1980, U.S.C.A. for the
Fourth Circuit.
Nebraska Bankers Association,
et al. v. Board of
Governors, et al., filed September 1980, U.S.D.C.
for the District of Nebraska.
Republic of Texas Corporation v. Board of Governors,
filed September 1980, U.S.C.A. for the Fifth Circuit.
Consumers Union of the United States, Inc., v. Board
of Governors, et al., filed August 1980, U.S.D.C.
for the District of Columbia.
A. G. Becker Inc., v. Board of Governors, et al., filed
August 1980, U.S.D.C. for the District of Columbia.
Otero Savings and Loan Association v. Board of
Governors, filed August 1980, U.S.D.C. for the
District of Columbia.
Edwin F. Gordon v. Board of Governors, et al., filed
August 1980, U.S.C.A. for the Fifth Circuit.
Legal Developments
Martin-Trigona v. Board of Governors, filed July
1980, U.S.C.A. for the District of Columbia.
U.S. League of Savings Associations v. Depository
Institutions Deregulation Committee, et al., filed
June 1980, U.S.D.C. for the District of Columbia.
Berkovitz, et al. v. Government of Iran, et al., filed
June 1980, U.S.D.C. for the Northern District of
California.
Mercantile Texas Corporation v. Board of Governors,
filed May 1980, U.S.C.A. for the Fifth Circuit.
Corbin, Trustee v. United States, filed May 1980,
United States Court of Claims.
Louis J. Roussel v. Board of Governors, filed April
1980, U.S.D.C. for the District of Columbia.
Ulyssess S. Crockett v. United States, et al., filed
April 1980, U.S.D.C. for the Eastern District of
North Carolina.
County National Bancorporation
and TGB Co. v.
Board
of Governors,
filed
September 1979,
U.S.C.A. for the Eighth Circuit.
Gregory v. Board of Governors, filed July 1979,
U.S.D.C. for the District of Columbia.
Donald W. Riegel, Jr. v. Federal Open Market Committee, filed July 1979, U.S.D.C. for the District of
Columbia.
193
Connecticut Bankers Association, et al., v. Board of
Governors, filed May 1979, U.S.C.A. for the District of Columbia.
Independent Insurance Agents of America, et al., v.
Board of Governors, filed May 1979, U.S.C.A. for
the District of Columbia.
Independent Insurance Agents of America, et al., v.
Board of Governors, filed April 1979, U.S.C.A. for
the District of Columbia.
Independent Insurance Agents of America, et al., v.
Board of Governors, filed March 1979, U.S.C.A. for
the District of Columbia.
Security Bancorp and Security National Bank v.
Board of Governors, filed March 1978, U.S.C.A. for
the Ninth Circuit.
Investment Company Institute v. Board of Governors,
filed September 1977, U.S.D.C. for the District of
Columbia.
Roberts Farms, Inc., v. Comptroller of the Currency,
et al., filed November 1975, U.S.D.C. for the Southern District of California.
David Merrill, et al. v. Federal Open Market Committee, filed May 1975, U.S.D.C. for the District of
Columbia.
A1
Financial and Business Statistics
CONTENTS
Domestic Financial
Statistics
A3
A4
Monetary aggregates and interest rates
Reserves of depository institutions, reserve,
bank credit
A5 Reserves and borrowings of depository
institutions
A6 Federal funds and repurchase agreements of
large member banks
WEEKLY REPORTING COMMERCIAL BANKS
Assets and liabilities
A18
All reporting banks
A19
Banks with assets of $ 1 billion or more
A20
Banks in N e w York City
A21 Balance sheet memoranda
A22 Commercial and industrial loans
A23 Gross demand deposits of individuals,
partnerships, and corporations
POLICY INSTRUMENTS
A7
A8
A9
Federal Reserve Bank interest rates
Depository institutions reserve requirements
Maximum interest rates payable on time and
savings deposits at federally insured institutions
A10 Federal Reserve open market transactions
FEDERAL RESERVE BANKS
FINANCIAL MARKETS
A23 Commercial paper and bankers dollar
acceptances outstanding
A24 Prime rate charged by banks on short-term
business loans
A24 Terms of lending at commercial banks
A25 Interest rates in money and capital markets
A26 Stock market—Selected statistics
A l l Condition and Federal Reserve note statements
A12 Maturity distribution of loan and security
holdings
All Savings institutions—Selected assets and
liabilities
MONETARY AND CREDIT AGGREGATES
FEDERAL FINANCE
A12 Bank debits and deposit turnover
A13 Money stock measures and components
A14 Aggregate reserves of depository institutions
and member bank deposits
A15 Loans and securities of all commercial banks
A28
A29
A30
A30
COMMERCIAL BANKS
A16 Major nondeposit funds
A17 Assets and liabilities, last Wednesday-of-month
series
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 marketable securities—
Ownership, by maturity
A32 U.S. government securities dealers —
Transactions, positions, and financing
A33 Federal and federally sponsored credit
agencies—Debt outstanding
2
Federal Reserve Bulletin • February 1981
SECURITIES MARKETS AND
CORPORATE FINANCE
A34 New security issues—State and local
governments and corporations
A35 Open-end investment companies—Net sales and
asset position
A35 Corporate profits and their distribution
A36 Nonfinancial corporations—Assets and liabilities
A36 Total nonfarm business expenditures on new
plant and equipment
A37 Domestic finance companies—Assets and
liabilities; business credit
REAL ESTATE
A53 U.S. reserve assets
A54 Foreign branches of U.S. banks—Balance sheet
data
A56 Selected U.S. liabilities to foreign official
institutions
REPORTED BY BANKS IN THE UNITED STATES
A56
A57
A59
A60
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A60 Banks' own claims on unaffiliated foreigners
A61 Claims on foreign countries—Combined
domestic offices and foreign branches
A38 Mortgage markets
A39 Mortgage debt outstanding
SECURITIES HOLDINGS AND TRANSACTIONS
CONSUMER INSTALLMENT CREDIT
A40 Total outstanding and net change
A41 Extensions and liquidations
A62 Marketable U.S. Treasury bonds and notes—
Foreign holdings and transactions
A62 Foreign official assets held at Federal Reserve
Banks
A63 Foreign transactions in securities
FLOW OF FUNDS
A42 Funds raised in U.S. credit markets
A43 Direct and indirect sources of funds to credit
markets
Domestic Nonfinancial
REPORTED BY NONBANKING BUSINESS
ENTERPRISES IN THE UNITED STATES
A64 Liabilities to unaffiliated foreigners
A65 Claims on unaffiliated foreigners
Statistics
INTEREST AND EXCHANGE RATES
A44 Nonfinancial business activity—Selected
measures
A44 Output, capacity, and capacity utilization
A45 Labor force, employment, and unemployment
A46 Industrial production—Indexes and gross value
A48 Housing and construction
A49 Consumer and producer prices
A50 Gross national product and income
A51 Personal income and saving
International
Statistics
A52 U.S. international transactions—Summary
A53 U.S. foreign trade
A66 Discount rates of foreign central banks
A66 Foreign short-term interest rates
A66 Foreign exchange rates
A67 Guide to Tabular
Statistical Releases,
Special
Presentation,
and Special Tables
Tables
A68 Commercial bank assets and liabilities,
September 30, 1980
Domestic Financial Statistics
1.10
A3
MONETARY AGGREGATES AND INTEREST RATES
1980
1980
Item
Ql'
Q3'
Q2'
Q4
Aug.
Sept.
Oct.
Nov.
Dec.
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent) 1
1
2
3
4
Reserves of depository institutions
Total
*
Required
Nonborrowed
Monetary base 2
4.3
5.1
3.3
7.8
0.4
0.7
7.4
5.2
6.7
5.8
12.4
9.9
16.5
15.2
7.2
11.2
15.3
14.9
7.0
15.0'
21.3
22.9
0.7
9.7
5.2
6.8
5.4
10.1
35.9
27.0
13.2
15.0'
1.6
0.0
13.4
4.9
5
6
7
8
9
Concepts of money and liquid assets3
M-1A
M-1B
M-2
M-3
L
4.6
5.8
7.3
8.0
8.6
-4.4
-2.6
5.6
5.8
7.8
11.5
14.6
16.0
13.0
9.7
8.1
10.8
9.1
11.6
n.a.
19.3
21.8'
14.9'
14.0'
13.0'
12.3'
15.8
8.7'
9.6'
12.5'
9.1'
11.8'
8.8
10.8'
6.4'
6.5'
8.7'
10.4
15.2'
14.3
-11.1
-9.0
2.0
7.4
n.a.
8.2
-19.8
28.9
11.1
2.6
10.0
-21.7
33.1
10.6
4.8
4.9
27.5
0.7
-7.2
9.9
15.0
1.7
17.1
23.4
11.6
8.0'
26.4'
0.9'
2.1'
11.5'
12.5'
8.8'
6.6'
22.5'
10.2'
11.7'
10.0'
11.3'
14.1'
11.7'
23.2'
-8.7'
31.6'
38.2'
12.7'
18.3
-40.0
39.6
39.5
11.1
9.5
-.5
7.0
14.8
17.9
14.1
13.3
16.6
12.6
Time and savings deposits
Commercial banks
10 Total
11 Savings4
12 Small-denomination time 5
13 Large-denomination time 6
14 Thrift institutions7
15 Total loans and securities at commercial banks 8
1980
Q1
Q2
1980
04
Q3
Sept.
Oct.
1981
Nov.
Dec.
Jan.
Interest rates (levels, percent per annum)
16
17
18
19
Short-term rates
Federal funds 9
Discount window borrowing 10
Treasury bills (3-month market yield)11
Commercial paper (3-month) 1112
Long-term rates
Bonds
20
U.S. government 13
21 State and local government 14
22
Aaa utility (new issue)15
23 Conventional mortgages 16
15.05
12.51
13.35
14.54
12.69
12.45
9.62
11.18
9.83
10.35
9.15
9.65
15.85
11.78
13.61
15.26
10.87
10.17
10.27
10.97
12.81
11.00
11.62
12.52
15.85
11.47
13.73
15.18
18.90
12.87
15.49
18.07
19.08
13.00
15.02
16.58
11.78
8.23
13.22
14.32
10.58
7.95
11.77
12.70
10.95
8.58
12.20
13.12
12.23
n.a.
13.49
14.62
11.47
8.94
12.74
13.65
11.75
9.11
13.18
14.10
12.44
9.56
13.85
14.70
12.49
10.11
14.51
15.05
12.29
9.66
14.12
n.a
1. Unless otherwise noted, rates of change are calculated from average amounts
outstanding in preceding month or quarter. Growth rates for member bank reserves
are adjusted for discontinuities in series that result from changes in Regulations
D and M.
2. Includes reserve balances at Federal Reserve Banks in the current week plus
vault cash held two weeks earlier used to satisfy reserve requirements at all depository institutions plus currency outside the U.S. Treasury, Federal Reserve Banks,
the vaults of depository institutions, and surplus vault cash at depository institutions.
3. M-1A: Averages of daily figures for (1) demand deposits at all commercial
banks other than those due to domestic banks, the U.S. government, and foreign
banks and official institutions less cash items in the process of collection and Federal
Reserve float; and (2) currency outside the Treasury, Federal Reserve banks, and
the vaults of commercial banks.
M-1B: M-1A plus negotiable order of withdrawal and automated transfer service
accounts at banks and thrift institutions, credit union share draft accounts, and
demand deposits at mutual savings banks.
M-2: M-1B plus savings and small-denomination time deposits at all depository
institutions, overnight repurchase agreements at commercial banks, overnight Eurodollars held by U.S. residents other than banks at Caribbean branches of member
banks, and money market mutual fund shares.
M-3: M-2 plus large-denomination time deposits at all depository institutions
and term RPs at commercial banks and savings and loan associations.
L: M-3 plus other liquid assets such as term Eurodollars held by U.S. residents
other than banks, bankers acceptances, commercial paper, Treasury bills and other
liquid Treasury securities, and U.S. savings bonds.
4. Savings deposits exclude NOW and ATS accounts at commercial banks.
5. Small-denomination time deposits are those issued in amounts of less than
$100,000.
6. Large-denomination time deposits are those issued in amounts of $100,000 or
more.
7. Savings and loan associations, mutual savings banks, and credit unions.
8. Changes calculated from figures shown in table 1.23.
9. Averages of daily effective rates (average of the rates on a given date weighted
by the volume of transactions at those rates).
10. Rate for the Federal Reserve Bank of New York.
11. Quoted on a bank-discount basis.
12. Beginning Nov. 1977, unweighted average of offering rates quoted by at least
five dealers. Previously, most representative rate quoted by these dealers. Before
Nov. 1979, data shown are for 90- to 119-day maturity.
13. Market yields adjusted to a 20-year maturity by the U.S. Treasury.
14. Bond Buyer series for 20 issues of mixed quality.
15. Weighted averages of new publicly offered bonds rated Aaa, Aa, and A by
Moody's Investors Service and adjusted to an Aaa basis. Federal Reserve compilations.
16. Average rates on new commitments for conventional first mortgages on new
homes in primary markets, unweighted and rounded to nearest 5 basis points, from
Dept. of Housing and Urban Development.
A4
1.11
DomesticNonfinancialStatistics • February 1981
RESERVES OF DEPOSITORY INSTITUTIONS, RESERVE BANK CREDIT
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week-ending
Dec. 17
Dec. 24
Dec. 31
Jan. 7
Jan. 14
Jan. 21
SUPPLYING R E S E R V E F U N D S
1 Reserve Bank credit outstanding
142,984
143,250
142,819
143,982
144,173
145,857
146,082
143,691
143,002
2 U.S. government securities 1
3
Bought outright
4
Held under repurchase agreements
5 Federal agency securities
6
Bought outright
7
Held under repurchase agreements
120,656
119,094
1,562
9,087
8.761
326
119,074
118,548
526
119.362
118,795
567
121,322
120,724
598
8,812
8,881
8,743
78
8,734
73
8,739
142
117,608
117,098
510
8,837
8,739
98
121,449
119,139
2,310
9,050
8,739
311
120,543
120,543
8,821
119,337
119,071
266
8,749
8,739
10
119,952
119,753
199
8.754
8,739
15
397
2,156
4,288
6,400
124
1,617
5.797
7,817
68
1,405
4,161
9,011
1,505
4,221
7,941
30
1,649
6,038
8,370
191
1,627
9,049
8,544
268
1,117
5,699
8,498
1,332
4,489
8,587
32
1,419
3,650
9,195
11,163
3,325
13,439
11,161
11,160
2,518
13,437
11,161
11,161
11,161
11,161
11,161
11,160
3,313
13,422
3,368
13,408
3,368
13,410
3,125
13,485
2,518
13,427
2,518
13,431
2,518
13,438
132,787
458
135,676
446
133,416
439
135,365
445
135,960
446
136,971
445
136,121
436
134,479
440
132,811
437
2,964
314
401
2,722
353
403
3,172
380
541
2,784
386
391
2,287
395
392
3,286
375
416
2,979
373
651
3,085
530
395
3,109
304
672
4,772
29,215
4,881
26,664
4,872
27,114
4,977
21,572
4,974
27,659
4.857
27,277
4,909
27,718
4,971
26.900
4,973
27,809
8
9
10
11
Acceptances
Loans
Float
Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate account . .
14 Treasury currency outstanding
112
8,739
8,739
ABSORBING R E S E R V E F U N D S
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than member bank reserves,
with Federal Reserve Banks
17
Treasury
18
Foreign
19
Other
20 Other Federal Reserve liabilities and
capital
21 Reserve accounts 2
Wednesday figures
End-of-month figures
1981
Jan.
Dec. 17
Jan. 7
Jan. 14
146,382
142,271
145,550
137,992
121,328
119,299
2,029
9,264
8,739
117,331
117,331
121.571
121.571
113,812
113,812
8.739
8,739
8,739
8,739
8,739
8.739
Dec. 24
Nov.
Dec.
22 Reserve bank credit outstanding
146,115
146,383
139,328
148,364
147,075
23 U.S. government securities 1
24
Bought outright
25
Held under repurchase agreements
26 Federal agency securities
27
Bought outright
120,812
118.936
1,876
9,165
8.761
121.328
119,299
2,029
9.264
8.739
117,169
117,169
122,123
120,069
2.054
9,128
8,739
118,308
118,308
404
525
389
523
2.284
6,792
6,539
776
1,809
4.467
8.739
327
1,304
2,280
9,836
11,162
3,368
13,779
11,160
2,518
13,838
134,104
449
SUPPLYING R E S E R V E F U N D S
28
29
30
31
32
Held under repurchase agreements
Acceptances
Loans
Float
Other Federal Reserve assets
33 Gold stock
34 Special drawing rights certificate account . .
35 Treasury currency outstanding
8.739
8,739
8,739
8,739
525
6,561
8,609
1,388
9,673
8,967
776
1,809
4,467
8,738
854
6,521
8.826
2,539
3,863
8,838
1,349
4,894
9,198
11,159
2,518
13,450
11,161
11,161
11,161
11,161
11,160
3,368
13,408
3,368
13,423
2,518
13,838
2,518
13,427
2,518
13.437
11,159
2,518
13,444
137,244
437
130,688
441
135,904
441
136,771
447
137.244
437
135,552
437
134,042
440
132,325
440
2,435
368
478
3.062
411
617
3,038
573
515
2,653
287
403
2,540
413
379
3,062
411
617
3,217
257
529
2.814
301
370
3,013
248
536
5.061
31.528
4,671
27.456
4,579
26,621
5,009
31,604
4,741
29,735
4,671
27,456
4,878
24,507
4,891
29,807
4,701
23,850
1,616
ABSORBING R E S E R V E F U N D S
36 Currency in circulation
37 Treasury cash holdings
Deposits, other than member bank reserves
with Federal Reserve Banks
38
Treasury
39
Foreign
40
Other
41 Other Federal Reserve liabilities and
capital
42 Reserve accounts 2
1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Includes reserve balances of all depository institutions,
NOTE. For amounts of currency and coin held as reserves, see table 1.12.
Member Banks
1.12
RESERVES AND BORROWINGS
A5
Depository Institutions
Millions of dollars
Monthly averages of daily figures
Reserve classification
1 Reserve balances with Reserve Banks'
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Vault cash at institutions with required
reserve balances 2
Vault cash equal to required reserves at
other institutions
Surplus vault cash at other institutions 3 .
Reserve balances + total vault cash 4
Reserve balances + total vault cash used
to satisfy reserve requirements 4 - 5
Required reserves (estimated)
Excess reserve balances at Reserve Banks 4 - 6
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Large commercial banks
Reserves held
Required
Excess
Small commercial banks
Reserves held
Required
Excess
U.S. agencies and branches
Reserves held
Required
Excess
All other institutions
Reserves held
Required
Excess
1981
1980
1979
Nov.
Dec.
Jan
Dec.
May
June
July
Aug.
Sept.
Oct.
32,473
32,755
32,125
31,384
28,923
29,164
29,976
29,215
15.311
26,664
18,149
27,114
19,293
.P
11,344
10,999
1J' ,141
11,287
11,262
11,811
11,678
11,876
12,602
13,587
n. a.
n. a.
43,972
n,.a.
n..a.
43,968
n.,a.
n. a.
43,479
n. a.
n. a.
42,859
n. a.
n. a.
40,373
n.,a.
n. a.
41,164
n. a.
n.a.
41,815
439
2,996
44,674
704
4,843
44,940
700
5,006
46,520
n. a.
43,578
394
1,473
82
n..a.
43,785
183
1,028
63
n. a.
43,268
211
380
12
n. a.
42,575
284
395
7
n. a.
40,071
302
659
10
n. a.
40,908
256
1,311
26
n.a.
41,498
317
1,335
67
41,678
40,723
955
2,156
99
40.097
40,067
30
1,617
116
41,514
41,022
492
1,405
120
24,940
25,819
-879
26,267
26,600
-333
13,719
13,523
196
13,935
13,691
244
260
230
30
253
230
23
494
495
-1
513
501
12
n. a.
n .a.
n. a.
n. a.
n. a.
n. a.
n. a.
n.,a.
Weekly averages of daily figures for week ending
1
24 Reserve balances with Reserve Banks . . . .
25 Total vault cash (estimated)
26
Vault cash at institutions with required
reserve balances 2
27
Vault cash equal to required reserves at
other institutions
Surplus vault cash at other institutions 3 .
28
29 Reserve balances + total vault cash 4
30 Reserve balances + total vault cash used
to satisfy reserve requirements 4 - 5
31 Required reserves (estimated)
32 Excess reserve balances at Reserve Banks 4 - 6
33
Total borrowings at Reserve Banks
34
Seasonal borrowings at Reserve Banks
Large commercial banks
35 Reserves held
Required
36
37
Excess
Small commercial banks
38 Reserves held
39
Required
40
Excess
:...
U.S. agencies and branches
41 Reserves held
42
Required
Excess
43
All other institutions
44 Reserves held
45
Required
46
Excess
Nov. 26
Dec. 3
Dec. 10
Dec. 17
28,068
16,937
27,510
18,317
26,096
18,064
27,572
18,317
27,659
17,663
27,277
18,482
27,718
17,841
26,900
20,390
27,809
20,244
26,508
18,827
11,385
12,413
12,531
12,660
12,345
12,954
12,498
14,268
14,066
13,736
730
4,822
45,134
740
5,164
45,955
700
4,833
44,288
700
4,957
46,013
700
4,618
45,456
700
4,828
45,882
700
4,643
45,681
700
5,422
47,403
700
5,478
48,165
700
4,391
45,442
40,312
39,995
317
2,215
115
40,791
39,910
881
2,142
110
39,455
39,193
262
1,786
111
41,056
40,554
502
1,505
124
40,838
40,029
809
1,649
119
41,054
40,558
496
1,627
116
41,038
40,374
664
1.117
112
41,981
41,240
741
1,332
105
42,687
42,180
507
1,419
123
41,051
40,651
400
1,793
137
25,354
25,724
-370
25,698
25,631
67
24,495
25,171
-676
25,584
26,248
-664
25,757
25,773
-16
25,700
26,163
-463
25,897
26,050
-153
26,698
26,797
-99
27,380
27,629
-249
25,881
26,222
-341
13,618
13,574
44
13,880
13,547
333
13.517
13,324
193
13,706
13,566
140
13,828
13,551
277
13,955
13,643
312
13,832
13,598
234
13,889
13,693
196
14,185
13,825
360
13,929
13,698
231
235
228
7
237
244
-7
244
230
14
274
223
51
261
221
40
262
234
28
271
242
29
264
221
43
252
223
29
244
231
13
487
469
18
500
488
12
454
468
-14
535
517
18
463
484
-21
527
518
9
565
484
81
529
529
0
496
503
-7
473
500
-27
1. Includes all reserve balances of depository institutions.
2. Prior to Nov. 13, 1980, the figures shown reflect only the vault cash held by
member banks.
3. Total vault cash at institutions without required reserve balances less vault
cash equal to their required reserves.
4. Adjusted to include waivers of penalties for reserve deficiencies in accordance
with Board policy, effective Nov. 19, 1975, of permitting transitional relief on a
graduated basis over a 24-month period when a nonmember bank merged into an
Dec. 24
Dec. 31
Jan.
1P
Jan. 14P
Jan. 21 P
Jan. 28P
existing member bank, or when a nonmember bank joins the Federal Reserve
System. For weeks for which figures are preliminary, figures by class of bank do
not add to total because adjusted data by class are not available.
5. Reserve balances with Federal Reserve Banks plus vault cash at institutions
with required reserve balances plus vault cash equal to required reserves at other
institutions.
6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy
reserve requirements less required reserves. (This measure of excess reserves is
comparable to the old excess reserve concept published historically.)
A6
DomesticNonfinancialStatistics • February 1981
1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS
Large Member Banks'
Averages of daily figures, in millions of dollars
1980 and 1981, week ending Wednesday
By maturity and source
Dec. 3
One day and continuing contract
1 Commercial banks in United States
2 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies
3 Nonbank securities dealers
4 Allother
Dec. 10'
Dec. 17
Dec. 24'
Dec. 31'
Jan. 7
Jan. 14
Jan. 21
Jan. 28
51,213
52,762
51,140
46,737
45,865
50,819
52,180
48,688
44,424
14,205
2,581
15,484
14,384
2,355
17,964
14,076
2,864
17,847
13,898
2,682
16,656
13,846
2,242
14,598
14,516
2,784
16,120
15,309
2,937
17,728
14,602
2,899
17,817
14,227
2,768
17,326
All other maturities
5 Commercial banks in United States
6 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies
7 Nonbank securities dealers
8 Allother
4,501
4,001
4.070
4,324
5,266
4,606
4,181
3,993
4,196
7,225
4,494
12,147
7,300
4,139
10,304
7,534
4,136
9,981
7,750
4,495
10,820
7,738
4,491
13,847
7,112
4,150
12,062
7,138
4,085
11,356
7,058
4,652
11,864
7,303
4,916
12,377
MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract
9 Commercial banks in United States
10 Nonbank securities dealers
14,697
2,721
14,141
2,976
14,411
2,950
13,385
3,254
15,531
2,772
18,124
3,614
17,016
3,726
13,879
3,032
11,356
2,547
Banks with assets of $1 billion or more as of December 31, 1977.
Policy Instruments
1.14
A7
FEDERAL RESERVE BANK INTEREST RATES
Percent per annum
Current and previous levels
Extended credit
Short-term
adjustment credit 1
Federal Reserve
Bank
Emergency credit
to all others
under section 133
Special circumstances 2
Seasonal credit
Rate on
1/31/81
Effective
date
Previous
rate
Rate on
1/31/81
Effective
date
Previous
rate
Rate on
1/31/81
Effective
date
Previous
rate
Rate on
1/31/81
Effective
date
Previous
rate
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
13
13
13
13
13
13
12/8/80
12/5/80
12/8/80
12/5/80
12/5/80
12/5/80
12
12
12
12
12
12
13
13
13
13
13
13
12/8/80
12/5/80
12/8/80
12/5/80
12/5/80
12/5/80
12
12
12
12
12
12
14
14
14
14
14
14
12/8/80
12/5/80
12/8/80
12/5/80
12/5/80
12/5/80
13
13
13
13
13
13
16
16
16
16
16
16
12/8/80
12/5/80
12/8/80
12/5/80
12/5/80
12/5/80
15
15
15
15
15
15
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
13
13
13
13
13
13
12/8/80
12/5/80
12/5/80
12/5/80
12/8/80
12/5/80
12
12
12
12
12
12
13
13
13
13
13
13
12/8/80
12/5/80
12/5/80
12/5/80
12/8/80
12/5/80
12
12
12
12
12
12
14
14
14
14
14
14
12/8/80
12/5/80
12/5/80
12/5/80
12/8/80
12/5/80
13
13
13
13
13
13
16
16
16
16
16
16
12/8/80
12/5/80
12/5/80
12/5/80
12/8/80
12/5/80
15
15
15
15
15
15
Range of rates in recent years 4 - 5
Effective date
In effect Dec. 31, 1970
1971— Jan. 8
15
19
22
29
Feb. 13
19
July 16
23
Nov. 11
19
Dec. 13
17
24
1973— Jan. 15
Feb. 26
Mar. 2
Apr. 23
May 4
11
18
June 11
15
July
2
Aug. 14
23
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
514
51/4-5 Vi
514
51/4
51/4
5V4
5-51/4
5-51/4
5
43/4-5
43/4
43/4-5
5
43/4-5
43/4
4^-43/4
41/2-43/4
4 Yi
5
5-51/2
5Vi
514-53/4
53/4
53/4-6
6
6-6 VI>
6Y1
1
1-lVi
IVZ
51/4
5
5
5
43/4
5
5
5
43/4
43/4
414
4 Vi
5
5l4
5 Vi
5 Vi
53/4
6
6
6P2
6V1
1
iVi
lYi
Effective date
1974— Apr. 25
30
Dec. 9
16
1975— Jan.
6
10
24
Feb. 5
7
Mar. 10
14
May 16
1976— Jan.
19
23
Nov. 22
26
1977— Aug. 30
31
Sept. 2
Oct. 26
1978— Jan.
9
20
May 11
12
July
3
1. Effective Dec. 5, 1980, a 3 percent surcharge was applied to short term
adjustment credit borrowings by institutions with deposits of $500 million or more
who borrowed in successive weeks or in more than 4 weeks in a calendar quarter.
2. Applicable to advances when exceptional circumstances or practices involve
only a particular depository institution as described in section 201.3(b) (2) of Regulation A.
3. Applicable to emergency advances to individuals, partnerships, and corporations as described in section 201.3(c) of Regulation A.
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
714-8
8
73/V8
73/4
7V4
IVA
71/4
6 3 /4-7V4
63/4
61/4-63/4
61/4
6-61/4
514-6
5Vz
5V4-51/2
5V4
51/4-53/4
51/4-53/4
53/4
6
73/4
73/4
71/4
71/4
71/4
63/4
6 3 /4
61/4
61/4
6
5Vz
5Vi
5V4
51/4
51/4
53/4
53/4
6
6
6 Vz
614
6VS-7
7
7-7V4
7
7
71/4
6^
Effective date
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
71/4
73/4
10
21
22
16
20
Nov. 1
3
8-8 ¥2
SVi
814-914
9Vz
7V4
73/4
8
814
m
914
9Vi
1979— July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
10
10-1014
10V2
1014-11
11
11-12
12
10
10 14
10V5
11
11
12
12
1978— July
Aug.
Sept.
Oct.
1980— Feb. 15
19
May 29
30
June 13
16
July 28
29
Sept. 26
Nov. 17
Dec. 5
8
In effect Jan. 31, 1981
12-13
13
12-13
12
11-12
11
10-11
10
11
12
12-13
13
13
13
13
13
12
11
11
10
10
11
12
13
13
13
4. Rates for short-term adjustment credit. For description and earlier data see
the following publications of the Board of Governors: Banking and Monetary
Statistics, 1914-1941 and 1941-1970; Annual Statistical Digest, 1971-1975, 1972-1976,
1973-1977, and 1974-1978.
5. Twice in 1980, the Federal Reserve applied a surcharge to short-term adjustment credit borrowings by institutions with deposits of $500 million or more
who had borrowed in successive weeks or in more than 4 weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,
1980. On Nov. 17,1980, a 2 percent surcharge was adopted which was subsequently
raised to 3 percent on Dec. 5, 1980.
A8
1.15
D o m e s t i c Financial Statistics • February 1981
DEPOSITORY INSTITUTIONS RESERVE REQUIREMENTS'
Percent of deposits
Type of deposit, and deposit interval
in millions of dollars
Net demand2
0-2
2-10
KM 00
100-400
Over 400
Time and savings2-3
Savings
Time 4
0-5. by maturity
30-179 days
180 davs to 4 years
4 years or more
Over 5, bv maturity
30-179 days
180 davs to 4 years
4 years or more
Member bank requirements
before implementation of the
Monetary Control Act
Percent
Effective date
7
9'/:
IP/4
12v4
16»/4
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
3
Depository institution requirements
after implementation of the
Monetary Control Act s
Percent
Effective date
3
12
11/13/80
11/13/80
Nonpersonal time deposits1
By original maturity
Less than 4 years
4 years or more
3
0
11/13/80
11/13/80
Eurocurrency
All types
3
11/13/80
Net transaction accounts6
$0—$25 million
Over $25 million
3/16/67
3
2'/:
1
3/16/67
1/8/76
10/30/75
6
2'/:
1
12/12/74
1/8/76
10/30/75
1. For changes in reserve requirements beginning 1963. see Board's Annual
Statistical Digest, 1971-1975 and for prior changes, see Board's Annual Report for
1976. table 13. 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 Act
corporations.
2. (a) Requirement schedules are graduated, and each deposit interval applies
to that part of the deposits of each bank. Demand deposits subject to reserve
requirements are gross demand deposits minus cash items in process of collection
and demand balances due from domestic banks.
(b) The Federal Reserve Act as amended through 1978 specified different ranges
of requirements for reserve city banks and for other banks. Reserve cities were
designated under a criterion adopted effective Nov. 9. 1972, by which a bank having
net demand deposits of more than $400 million was considered to have the character
of business of a reserve city bank. The presence of the head office of such a bank
constituted designation of that place as a reserve city. Cities in which there were
Federal Reserve Banks or branches were also reserve cities. Any banks having net
demand deposits of $400 million or less were considered to have the character of
business of banks outside of reserve cities and were permitted to maintain reserves
at ratios set for banks not in reserve cities.
(c) Effective Aug. 24, 1978, the Regulation M reserve requirements on net
balances due from domestic banks to their foreign branches and on deposits that
foreign branches lend to U.S residents were reduced to zero from 4 percent and
1 percent, respectively. The Regulation D reserve requirement on borrowings from
unrelated banks abroad was also reduced to zero from 4 percent.
(d) Effective with the reserve computation period beginning Nov. 16. 1978.
domestic deposits of Edge corporations were subject to the same reserve requirements as deposits of member banks.
3. (a) Negotiable order of withdrawal (NOW) accounts and time deposits such
as Christmas and vacation club accounts were subject to the same requirements
as savings deposits.
(b) The average reserve requirement on savings and other time deposits before
implementation of the Monetary Control Act had to be at least 3 percent, the
minimum specified by law.
4. (a) Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent
was imposed on large time deposits of $100.000 or more, obligations of affiliates,
and ineligible acceptances. This supplementary requirement was eliminated with
the maintenance period beginning July 24. 1980. ^
Type of deposit, and
deposit interval
liabilities
(b) Effective with the reserve maintenance period beginning Oct. 25, 1979. a
marginal reserve requirement of 8 percent was added to managed liabilities in
excess of a base amount. This marginal requirement was increased to 10 percent
beginning April 3. 1980. was decreased to 5 percent beginning June 12. 1980. and
was reduced to zero beginning July 24. 1980. Managed liabilities are defined as
large time deposits. Eurodollar borrowings, repurchase agreements against U.S.
government and federal agency securities, federal funds borrowings from nonmember institutions, and certain other obligations. In general, the base for the
marginal reserve requirement was originally the greater of (a) $100 million or (b)
the average amount of the managed liabilities held by a member bank. Edge
corporation, or family of U.S. branches and agencies of a foreign bank for the two
statement weeks ending Sept. 26. 1979. For the computation period beginning Mar.
20. 1980. the base was lowered by (a) 7 percent or (b) the decrease in an institution's
U.S. office gross loans to foreigners and gross balances due from foreign offices
of other institutions between the base period (Sept. 13-26. 1979) and the week
ending Mar. 12. 1980. whichever was greater. For the computation period beginning
May 29. 1980. the base was increased by 7 !/2 percent above the base used to calculate
the marginal reserve in the statement week of May 14-21. 1980. In addition,
beginning Mar. 19. 1980. the base was reduced to the extent that foreign loans and
balances declined.
5. For existing nonmember banks and thrift institutions, there is a phase-in
period ending Sept. 3. 1987. For existing member banks the phase-in period is
about three years, depending on whether their new reserve requirements are greater
or less than the old requirements. For existing agencies and branches of foreign
banks, the phase-in ends Aug. 12. 1982. All new institutions will have a two-year
phase-in beginning with the date that they open for business.
6. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment
orders of withdrawal, telephone and preauthorized transfers (in excess of three per
month), for the purpose of making payments to third persons or others.
7. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which the beneficial interest is
held by a depositor that is not a natural person. Also included are certain transferable time deposits held by natural persons, and certain obligations issued to
depository institution offices located outside the United States. For details, see
section 204.2 of Regulation D.
NOIL. Required reserves must be held in the form of deposits with Federal
Reserve Banks or vault cash. After implementation of the Monetary Control Act.
nonmembers may maintain reserves on a pass-through basis with certain approved
institutions.
Policy Instruments
A9
1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions
Percent per annum
Commercial banks
Type and maturity of deposit
In effect Jan. 31, 1981
Previous maximum
13
14
5V4
5^4
7/1/79
12/31/80
SVA
8/1/79
1/1/80
7/1/73
7/1/73
11/1/73
12/23/74
6/1/78
6/1/78
53/4
6
61/2
IVa
l¥i
73/4
6/1/78
In effect Jan. 31, 1981
Effective
date
Effective
date
1 Savings
2 Negotiable order of withdrawal accounts 2
Time accounts 3
Fixed ceiling rates by maturity 4
14-89 days *
3
4 90 days to 1 year
5
1 to 2 years '
6 2 to 2¥i years 7
7
to 4 years 7
8 4 to 6 years 8
9 6 to 8 years 8
10 8 years or more 8
11 Issued to governmental units (all maturities) 10 . . . .
12 Individual retirement accounts and Keogh (H.R. 10)
plans (3 years or more) 1 0 1 1
Savings and loan associations and
mutual savings banks
5
5¥i
51/2
9
53/4
53/4
()
7
(6) .
^ 7^4
V/4
73/4
Effective
date
7/1/73
1/1/74
5Vi
7/1/73
7/1/73
1/21/70
1/21/70
1/21/70
()
6
6'/2
5W
5V4
5
6
1/1/80
( )3
5 /4
(')
0)
' 12/23/74
11/1/73
12/23/74
6/1/78
6/1/78
7/6/77
6/1/78
11/1/73
Percent
7/1/79
12/31/80
6
63/4
7V2
73/4
Previous maximum
l¥i
I
73/4
73/4
Special variable ceiling rates by maturity
6-month money market time deposits 12
2¥i years or more
1. July 1, 1973, for mutual savings banks; July 6, 1973, for savings and loan
associations.
2. For authorized states only, federally insured commercial banks, savings and
loan associations, cooperative banks, and mutual savings banks in Massachusetts
and New Hampshire were first permitted to offer negotiable order of withdrawal
(NOW) accounts on Jan. 1, 1974. Authorization to issue NOW accounts was extended to similar institutions throughout New England on Feb. 27, 1976, and in
New York State on Nov. 10, 1978, and in New Jersey on Dec. 28, 1979. Authorization to issue NOW accounts was extended to similar institutions nationwide
effective Dec. 31, 1980.
3. For exceptions with respect to certain foreign time deposits see the FEDERAL
RESERVE BULLETIN for O c t o b e r 1962 (p. 1279), A u g u s t 1965 (p. 1084), a n d Feb-
ruary 1968 (p. 167).
4. Effective Nov. 10, 1980, the minimum notice period for public unit accounts
at savings and loan associations was decreased to 14 days and the minimum maturity
period for time deposits at savings and loan associations in excess of $100,000 was
decreased to 14 days. Effective Oct. 30, 1980, the minimum maturity or notice
period for time deposits was decreased from 30 days to 14 days for mutual savings
banks.
5. Effective Oct. 30, 1980, the minimum maturity or notice period for time
deposits was decreased from 30 days to 14 days for commercial banks.
6. No separate account category.
7. No minimum denomination. Until July 1, 1979, a minimum of $1,000 was
required for savings and loan associations, except in areas where mutual savings
banks permitted lower minimum denominations. This restriction was removed for
deposits maturing in less than 1 year, effective Nov. 1, 1973.
8. No minimum denomination. Until July 1, 1979, minimum denomination was
$1,000 except for deposits representing funds contributed to an Individual Retirement Account (IRA) or a Keogh (H.R. 10) plan established pursuant to the Internal
Revenue Code. The $1,000 minimum requirement was removed for such accounts
in December 1975 and November 1976 respectively.
9. Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for certificates
maturing in 4 years or more with minimum denominations of $1,000; however, the
amount of such certificates that an institution could issue was limited to 5 percent
of its total time and savings deposits. Sales in excess of that amount, as well as
certificates of less than $1,000, were limited to the 6V1 percent ceiling on time
deposits maturing in 2¥1 years or more.
Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing in 4
years or more with minimum denomination of $1,000. There is no limitation on
the amount of these certificates that banks can issue.
10. Accounts subject to fixed rate ceilings. See footnote 8 for minimum denomination requirements.
11. Effective January 1, 1980, commercial banks are permitted to pay the same
rate as thrifts on IRA and Keogh accounts and accounts of governmental units
when such deposits are placed in the new 2h-year or more variable ceiling certificates or in 26-week money market certificates regardless of the level of the Treasury
bill rate.
12. Must have a maturity of exactly 26 weeks and a minimum denomination of
$10,000, and must be nonnegotiable.
13. Commercial banks, savings and loan associations, and mutual savings banks
were authorized to offer money market time deposits effective June 1, 1978. The
ceiling rate for commercial banks on money market time deposits entered into
before June 5, 1980, is the discount rate (auction average) on most recently issued
six-month U.S. Treasury bills. Until Mar. 15, 1979, the ceiling rate for savings and
loan associations and mutual savings banks was ¥4 percentage point higher than
the rate for commercial banks. Beginning March 15, 1979, the y4-percentage-point
interest differential is removed when the six-month Treasury bill rate is 9 percent
or more. The full differential is in effect when the six-month bill rate is 83/4 percent
or less. Thrift institutions may pay a maximum 9 percent when the six-month bill
rate is between 83/4 and 9 percent. Also effective March 15. 1979, interest compounding was prohibited on six-month money market time deposits at all offering
institutions. The maximum allowable rates in January for commercial banks and
thrift institutions were as follows: Jan. 1, 13.661; Jan. 8, 13.432; Jan. 15, 14.478;
Jan. 22, 14.721; Jan. 29, 14.371. Effective for all six-month money market certificates issued beginning June 5, 1980, the interest rate ceilings will be determined
by the discount rate (auction average) of most recently issued six-month U.S.
Treasury bills as follows:
Bill rate
Commercial bank ceiling
Thrift ceiling
8.75 and above
bill rate + ¥4 percent
bill rate -I- V4 percent
8.50 to 8.75
bill rate + Va percent
9.00
7.50 to 8.50
bill rate + ¥4 percent
bill rate + ¥1 percent
7.25 to 7.50
7.75
bill rate + ¥2 percent
Below 7.25
7.75
7.75
The prohibition against compounding interest in these certificates continues.
14. Effective Jan. 1, 1980, commercial banks, savings and loan associations, and
mutual savings banks were authorized to offer variable-ceiling nonnegotiable time
deposits with no required minimum denomination and with maturities of 2¥i years
or more. The maximum rate for commercial banks is 3/4 percentage point below
the yield on 2V2-year U.S. Treasury securities; the ceiling rate for thrift institutions
is ¥4 percentage point higher than
that for commercial banks. Effective Mar. 1,
3
1980, a temporary ceiling of ll /4 percent was placed on these accounts at commercial banks; the temporary ceiling is 12 percent at savings and loan associations
and mutual savings banks. Effective for all variable ceiling nonnegotiable time
deposits with maturities of 2^2 years or more issued beginning June 2, 1980, the
ceiling rates of interest will be determined as follows:
Treasury yield
Commercial bank ceiling
Thrift ceiling
12.00 and above
11.75
12.00
9.50 to 12.00
Treasury yield — ¥4 percent
Treasury yield
Below 9.50
9.25
9.50
Interest may be compounded on these time deposits. The ceiling rates of interest
at which these accounts may be offered vary biweekly. The maximum allowable
rates in January for commercial banks were as follows: Jan. 8, 11.75; Jan. 22, 11.75.
The maximum allowable rates in January for thrift institutions were as follows:
Jan. 8, 12.00; Jan. 22, 12.00.
15. Between July 1, 1979, and Dec. 31, 1979, commercial banks, savings and
loan associations, and mutual savings banks were authorized to offer variable ceiling
accounts with no required minimum denomination and with maturities of 4 years
or more. The maximum rate for commercial banks was 1V4 percentage points below
the yield on 4-year U.S. Treasury securities; the ceiling rate for thrift institutions
was ¥4 percentage point higher than that for commercial banks.
NOTE. Before Mar. 31, 1980, the maximum rates that could be paid by federally
insured commercial banks, mutual savings banks, and savings and loan associations
were established by the Board of Governors of the Federal Reserve System, the
Board of Directors of the Federal Deposit Insurance Corporation, and the Federal
Home Loan Bank Board under the provisions of 12 CFR 217, 329, and 526,
respectively. Title II of the Depository Institutions Deregulation and Monetary
Control Act of 1980 (P.L. 96-221) transferred the authority of the agencies to
establish maximum rates of interest payable on deposits to the Depository Institutions Deregulation Committee. The maximum rates on time deposits in denominations of $100,000 or more with maturities of 30-89 days were suspended in June
1970; such deposits maturing in 90 days or more were suspended in May 1973. For
information regarding previous interest rate ceilings on all types of accounts, see
earlier issues of the FEDERAL RESERVE BULLETIN, the Federal Home Loan Bank
Board Journal, and the Annual Report of the Federal Deposit Insurance Corpo-
A10
DomesticNonfinancialStatistics • February 1981
1.17
FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1980
Type of transaction
1978
1979
1980
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
U . S . GOVERNMENT SECURITIES
Outright transactions (excluding matched salepurchase transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
Others within 1 year1
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
16,628
13,725
0
2,033
15,998
6,855
0
2,900
7,668
7,331
0
3,389
322
0
0'
0
0
2,264
0
950
0
47
0
0
200
237
0
0
991
531
0
700
0
600
0
500
1,331
0
0
49
1,184
0
-5,170
3,203
0
17,339
-11,308
2,600
912
0
12,427
-18,251
0
121
0
412
-1,479
0
0
0
311
-788
0
137
0
2,423
-3,134
0
0
0
589
-1,459
0
0
0
596
-420
0
0
0
2,368
-879
0
100
0
754
-967
0
0
10
11
12
13
I to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
4,188
0
2,148
0
-12,693
7,508
2,138
0
-8,909
13,412
465
0
-412
1,479
0
0
-311
788
541
0
-720
1,750
0
0
-589
1,459
0
0
-596
420
0
0
-2,368
500
0
0
-754
967
14
lb
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
1,526
0
2 803
523
0
-4,646
2,181
703
0
-3,092
2,970
164
0
0
0
0
0
0
0
236
0
-1,703
1,000
0
0
0
0
0
0
0
0
0
0
0
220
0
0
0
0
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
1,063
0
2 545
454
0
0
1,619
811
0
-426
1,869
129
0
0
0
0
0
0
0
320
0
0
384
0
0
0
0
0
0
0
0
0
0
0
159
0
0
0
0
22
23
24
All maturities1
Gross purchases
Gross sales
Redemptions
24,591
13,725
2,033
22,325
6,855
5,500
12,232
7,331
3,389
1,200
0
0
0
2,264
950
1,234
47
0
200
237
0
991
531
700
0
600
500
1,431
0
49
25
26
Matched transactions
Gross sales
Gross purchases
511,126
510,854
627,350
624,192
674,000
675,496
50,590
52,076
48,370
46,023
72,315
71,645
55,766
56,207
55,787
56,462
40,944
41,129
79,754
78,734
27
28
Repurchase agreements
Gross purchases
Gross sales
151,618
152,436
107,051
106,968
113,902
113,040
12,810
15,258
10,719
10,110
2,783
3,016
3,203
2,743
20,145
19,808
24,169
23,924
11,534
11,381
7,743
6,896
3,869
238
-4,952
284
863
771
-670
516
301
173
235
853
399
134
668
0
145
0
0
2
0
0
2
0
0
*
0
0
91
0
0
21
0
0
0
0
0
22
40,567
40,885
37,321
36,960
28,895
28,863
3,035
3,351
1,737
1,242
1,082
1,132
977
1,188
5.922
5,734
4,825
4,880
1,889
1,767
-426
681
555
-318
492
-50
-302
167
-55
99
36 Outright transactions, net
37 Repurchase agreements, net
0
-366
0
116
0
73
0
7
0
-64
0
-33
0
222
0
67
0
-43
0
253
38 Net change in bankers acceptances
-366
116
73
7
-64
-33
222
67
-43
253
39 Total net change in System Open Market
Account
6,951
7,693
4,497
-73
-4,523
202
784
1,005
-768
868
29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
30
31
32
Outright transactions
Gross purchases
Gross sales
Redemptions
33
34
Repurchase agreements
Gross purchases
Gross sales
35 Net change in federal agency obligations
BANKERS ACCEPTANCES
1. Both gross purchases and redemptions include special certificates created
when the Treasury borrows directly from the Federal Reserve, as follows (millions
of dollars): March 1979, 2,600.
NOTE. Sales, redemptions, and negative figures reduce holdings of the System
Open Market Account; all other figures increase such holdings. Details may not
add to totals because of rounding.
Reserve Banks
1.18
FEDERAL RESERVE BANKS
All
Condition and Federal Reserve Note Statements
Millions of dollars
End of month
Wednesday
Account
1980
1980
1981
Jan. 7
Dec. 31
Jan. 14
Nov.
Jan. 28
Jan. 21
1981
Jan.
Dec.
Consolidated condition statement
ASSETS
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4 To depository institutions
5
Other
Acceptances
6 Held under repurchase agreements
Federal agency obligations
/ Bought outright
8
Held under repurchase agreements
U.S. government securities
Bought outright
9
Bills
10
Notes
11
Bonds
12
Total 1
13 Held under repurchase agreements
14 Total U.S. government securities
15 Total loans and securities
16 Cash items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies 2
19 Allother
20 Total assets
11,161
2,518
397
11,161
2,518
389
11,160
2,518
399
11,159
2,518
425
11,159
2,518
447
11,162
3.368
416
11,161
2,518
397
11,159
2,518
468
1,809
0
854
0
2,539
1,349
0
1.809
0
1,304
0
1,553
0
2,284
0
776
0
0
0
0
523
776
0
8,739
525
8,739
0
8,739
8,739
0
8,739
0
8,761
404
8,739
525
8,739
0
43,688
58.718
16,893
119,299
2,029
121,328
41,720
58,718
16,893
117,331
0
117,331
45,960
58,718
16.893
121,571
38,201
58,718
16,893
113,812
39,527
58,718
16,893
115,138
0
0
0
121,571
113,812
115,138
43,425
58,618
16,893
118,936
1,876
120,812
43,688
58,718
16,893
119,299
2,029
121,328
41,558
58,718
16,893
117,169
0
117,169
133,177
126,924
132,849
123,900
125,430
132,784
133,177
127,212
12,554
457
13,657
456
10,521
459
11,702
458
8,654
458
12,831
457
12,554
457
7,865
458
5,104
3,177
5,043
3,327
5,232
3,147
5,414
3,326
5,974
3,448
3,631
2,451
5,104
3,177
5,993
3,385
168,545
163,475
166,285
158,902
158,088
167,100
168,545
159,058
0
0
LIABILITIES
124,241
122,951
121,444
119,746
118,808
121.191
124,241
118,147
22
23
24
25
27,456
3,062
411
617
24,507
3,217
257
529
29,807
2,814
301
370
23,850
3,013
248
536
25,323
2,974
302
439
31,528
2,435
368
478
27,456
3,062
411
617
26,621
3,038
573
515
26 Total deposits
31,546
28,510
33,292
27,647
29,038
34,809
31,546
30,747
8,087
2,265
7,136
2,209
6,658
2,222
6,808
2,058
5,593
2,017
6,039
2,317
8,087
2,265
5,585
1,957
166,139
160,806
163,616
156,259
155,456
164,356
166,139
156,436
1,203
1,203
1,203
1,203
263
1,203
1,203
263
1,204
1,203
236
1,208
1,203
221
1,199
1,145
400
1,203
1,203
0
0
1,208
1,203
211
168,545
163,475
166,285
158,902
158,088
167,100
168,545
159,058
91,795
92,871
92,983
92,520
93,027
90,529
91,795
92,756
21 Federal Reserve notes
Deposits
Depository institutions
U.S. Treasury—General account
Foreign—Official accounts
Other
27 Deferred availability cash items
28 Other liabilities and accrued dividends 3
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
33 Total liabilities and capital accounts
34 MEMO: Marketable U.S. government securities held in
custody for foreign and international account
Federal Reserve note statement
35 Federal Reserve notes outstanding (issued to bank)
Less-held by bank 4
36
37
Federal Reserve notes, net
Collateral for Federal Reserve notes
38
Gold certificate account
39 Special drawing rights certificate account
40
Other eligible assets
41 U.S. government and agency securities
42 Total collateral
...
140,184
15,943
124,241
140,256
17,305
122,951
140,467
19,023
121,444
140,599
20,853
119,746
140,843
22,035
118,808
138,699
17,508
121,191
140,184
15,943
124,241
140,717
22,570
118,147
11,161
2,518
0
110,562
11,161
2,518
0
109,272
11,160
2,518
0
107,766
11,159
2,518
0
106,069
11,159
2,518
0
105,131
11,162
3,368
0
106,661
11,161
2,518
0
110,562
11,159
2,518
0
104,470
124,241
122,951
121,444
119,746
118,808
121,191
124,241
118,147
1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Includes U.S. government securities held under repurchase agreement against
receipt of foreign currencies and foreign currencies warehoused for the U.S. Treasury. Assets shown in this line are revalued monthly at market exchange rates.
3. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
4. Beginning September 1980, Federal Reserve notes held by the Reserve Bank
are exempt from the collateral requirement.
A12
1.19
DomesticNonfinancialStatistics • February 1981
FEDERAL RESERVE BANKS
Maturity Distribution of Loan and Security Holdings
Millions of dollars
End of month
Wednesday
Type and maturity groupings
1980
1980
1981
Dec. 31
Jan. 7
Jan. 21
Jan. 14
Nov. 30
Jan. 28
1981
Dec. 31
Jan. 31
1 Loans—Total
2
Within 15 davs
3
16 days to 90 days
4 91 days to 1 year
1,809
1.757
52
0
854
768
86
0
2,539
2,464
75
0
1,349
1,310
39
0
1,553
1,505
48
0
2,283
2,272
11
0
1,809
1,757
52
0
1,304
1,255
49
0
5 Acceptances—Total
6
Within 15 days
7
16 days to 90 days
8 91 days to 1 year
776
776
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
523
523
0
0
776
776
0
0
0
0
0
0
9 U.S. government securities—Total
10 Within 15 days1
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
121,328
4,780
23,499
30,187
34.505
13,355
15,002
117.331
1.931
21,652
30.886
34,505
13,355
15,002
121,571
4,244
23,635
30,831
34,505
13,354
15.002
113,812
3,547
16,769
30,634
34,505
13,355
15,002
115,138
4,385
19,948
27,943
34,505
13,355
15,002
120,812
5,494
23,086
28,934
34,942
13.354
15,002
121,328
4,780
23,499
30,187
34,505
13,355
15,002
117,169
2,125
24,904
27,279
34,505
13,354
15,002
16 Federal agency obligations—Total
17 Within 15 days1
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
9,264
705
426
1,519
4,837
1.092
685
8,739
31
582
1,508
4,862
1.071
685
8,739
31
604
1,586
4,762
1,071
685
8,739
73
550
1,750
4,597
1,085
684
8,739
73
550
1.750
4,597
1,085
684
9,165
556
467
1,495
4.870
1.092
685
9,264
705
426
1,519
4,837
1.092
685
8,739
73
550
1,749
4,597
1,085
685
1. Holdings under repurchase agreements are classified as maturing within 15
days in accordance with maximum maturity of the agreements.
1.20
BANK DEBITS AND DEPOSIT TURNOVER
Debits are shown in billions of dollars, turnover as ratio of debits to deposit. Monthly data are at annual rates.
1980
Bank group, or type of customer
1977
1979
1978
July
Aug.
Sept.
Oct.
Nov.
Debits to demand deposits1 (seasonally adjusted)
1 All commercial banks
2 Major New York City banks
3 Other banks
34,322.8
13,860.6
20,462.2
40.297.8
15.008.7
25.289.1
49,750.7
18.512.2
31,238.5
63,088.5
25,538.8
37.549.8
65,385.9
26,705.7
38,680.2
65,111.5
26,103.5
39,008.0
65.645.5
26,034.2
39,611.4
67.780.0
26.822.1
40,957.9
193.0
98.6
775.5
1,067.1
172.8
94.2
570.2
837.2
201.4
779.3
135.0
209.7
842.2
140.5
10.0
8.9
4.3
5.0
8.4
8.6
3.2
4.0
Debits to savings deposits2 (not seasonally adjusted)
4
5
6
7
ATS/NOW 3
Business4
Others 5
All accounts
5.5
21.7
152.3
179.5
17.1
56.7
359.7
432.9
83.3
77.4
557.6
718.2
161.6
85.1
633.7
880.4
145.2
84.9
631.1
861.2
175.0
91.4
719.2
985.6
Demand deposit turnover 1 (seasonally adjusted)
8 All commercial banks
9 Major New York City banks
10 Other banks
129.2
503.0
85.9
139.4
541.9
96.8
163.4
646.2
113.2
203.7
844.5
134.4
205.5
859.6
134.7
202.1
818.5
134.4
Savings deposit turnover 2 (not seasonally adjusted)
11
12
13
14
ATS/NOW 3
Business4
Others 5
All accounts
6.5
4.1
1.5
1.7
1. Represents accounts of individuals, partnerships, and corporations, and of
states and political subdivisions.
2. Excludes special club accounts, such as Christmas and vacation clubs.
3. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts
authorized for automatic transfer to demand deposits (ATS). ATS data availability
starts with December 1978.
4. Represents corporations and other profit-seeking organizations (excluding
commercial banks but including savings and loan associations, mutual savings
banks, credit unions, the Export-Import Bank, and federally sponsored lending
agencies).
5. Savings accounts other than NOW; business; and, from December 1978. ATS.
7.0
5.1
1.7
1.9
7.8
7.2
2.9
3.3
9.7
8.5
3.6
4.3
8.2
7.9
3.5
4.1
9.4
8.5
4.0
4.7
NOTE: Historical data for the period 1970 through June 1977 have been estimated;
these estimates are based in part on the debits series for 233 SMSAs, which were
available through June 1977. Back data are available from Publications Services,
Division of Administrative Services, Board of Governors of the Federal Reserve
System. Washington. D.C. 20551. Debits and turnover data for savings deposits
are not available before July 1977.
Monetary Aggregates
1.21
A13
MONEY STOCK MEASURES AND COMPONENTS
Billions of dollars, averages of daily figures
1977
Dec.
Item
1978
Dec.
1979
Dec.'
1980
1980
Dec.
July
Aug/
Sept.'
Oct/
Nov/
Dec.
Seasonally adjusted
MEASURES 1
1
2
3
4
5
M-1A
M-1B
M-2
M-3
L2
379.5
402.7
1,632.5
1,889.5
2,282.7
383.4
408.0
1,644.4
1,904.6
2,306.5
386.3
412.0
1,656.5
1,921.8
2,318.8
388.4
415.0
1,670.8
1,946.1
2,346.,5
384.8
411.9
1,673.6
1,958.1
n.a.
373.5
395.5
1,612.5
1,867.7
2,258.2
116.4
268.4
394.2
762.8
247.9
112.1
261.4
398.0
712.4
224.0
113.5
266.0
408.1
712.6
223.3
113.9
269.5
412.1
716.4
226.8
115.1
271.2
414.2
723.6
229.8
115.8
272.6
407.9
741.6
238.8
116.4
268.4
394.2
762.8
247.9
328.4
332.6'
1,294.1
1,460.3
1,720.2'
351.6
360.1'
1,401.5
1,623.6
1,934.9'
369.8
386.9
1,526.0
1,775.5
2,151.8
384.8
411.9
1,673.6
1,958.1
88.7
239.7
486.4'
454.9
145.2
97.6
253.9
475.8'
533.8
194.7
106.3
263.5
417.0
656.2
219.0
n.a.
COMPONENTS
6
7
8
9
10
Currency
Demand deposits
Savings deposits
Small-denomination time deposits 3
Large-denomination time deposits 4
....
....
Not seasonally adjusted
MEASURES 1
11
12
13
14
15
M-1A
M-1B
M-2
M-3
16
17
18
19
20
21
22
23
Currency
Demand deposits
Other checkable deposits 5
Overnight RPs and Eurodollars 6
Money market mutual funds
Savings deposits
Small-denomination time deposits 3
Large-denomination time deposits 4
L2
377.3
400.5
1,629.5
1,886.6
2,278.6
382.6
407.2
1,642.3
1,902.3
2,296.1
388.0
413.7
1,656.9
1,923.0
2,317.6
391.1
417.7
1,665.7
1,942.1
2,344.7
394.7
421.8
1,675.0
1,963.0
n.a.
375.5
397.5
1,618.0
1,870.8
2,259.6
118.5
276.2
27.1
32.2
75.8
391.5
757.0
251.4
112.7
262.7
22.0
29.1
80.6
401.0
712.9
221.7
113.7
263.6
23.2
31.6
80.7
408.8
711.1
223.3
113.7
268.9
24.6
32.9
78.2
412.4
714.9
226.5
114.9
273.1
25.7
32.5
77.4
412.9
723.7
230.6
116.6
274.5
26.6
32.6
77.0
405.8
735.9
240.0
118.5
276.2
27.1
32.2
75.8
391.5
757.0
251.4
337.2
341.4'
1,295.9
1,464.5
1,723.2'
360.9
369.5'
1,403.6'
1,629.2
1,938.3'
379.4
396.4
1,527.7
1,780.8
2,154.3
394.7
421.8
1,675.0
1,963.0
90.3
247.0
4.2'
18.6
3.8
483.1'
451.3
147.7
99.4
261.5
8.6'
23.9
10.3
472.6'
529.8
198.2
108.3
271.1
17.0
25.3
43.6
414.1
651.2
222.6
n.a.
COMPONENTS
....
....
1. Composition of the money stock measures is as follows:
M-1A: Averages of daily figures for (1) demand deposits at all commercial banks
other than those due to domestic banks, the U.S. government, and foreign banks
and official institutions less cash items in the process of collection and Federal
Reserve float; and (2) currency outside the Treasury, Federal Reserve Banks, and
the vaults of commercial banks.
M-1B: M-1A plus negotiable order of withdrawal and automatic transfer service
accounts at banlks and thrift institutions, credit union share draft accounts, and
demand deposits at mutual savings banks.
M-2: M-1B plus savings and small-denomination time deposits at all depository
institutions, overnight repurchase agreements at commercial banks, overnight Eurodollars held by U.S. residents other than banks at Caribbean branches of member
banks, and money market mutual fund shares.
M-3: M-2 plus large-denomination time deposits at all depository institutions
and term RPs at commercial banks and savings and loan associations.
2. L: M-3 plus other liquid assets such as term Eurodollars held by U.S. residents
other than banks, bankers acceptances, commercial paper. Treasury bills and other
liquid Treasury securities, and U.S. savings bonds.
3. Small-denomination time deposits are those issued in amounts of less than
$100,000.
4. Large-denomination time deposits are those issued in amounts of $100,000
or more and are net of the holdings of domestic banks, thrift institutions, the U.S.
government, money market mutual funds, and foreign banks and official institutions.
5. Includes ATS and NOW balances at all institutions, credit union share draft
balances, and demand deposits at mutual savings banks.
6. Overnight (and continuing contract) RPs are those issued by commercial
banks to the nonbank public, and overnight Eurodollars are those issued by Caribbean branches of member banks to U.S. nonbank customers.
NOTE. Latest monthly and weekly figures are available from the Board's H.6(508)
release. Back data are available from the Banking Section, Division of Research
and Statistics.
A14
1.22
DomesticNonfinancialStatistics • February 1981
A G G R E G A T E R E S E R V E S O F D E P O S I T O R Y INSTITUTIONS! A N D M E M B E R B A N K D E P O S I T S
Billions of dollars, averages of daily figures
1980
Item
1978
Dec.
1979
Dec .'
1980
Dec.
July
June
Aug.
Sept.
Oct.
Nov. 2 '
Dec.
Seasonally adjusted
1 Total reserves
3
41.16
43.46
40.13
43.96
42.78
40.75
41.52
41.73
41.23
40.13
2 Nonborrowed reserves
3 Required reserves
4 Monetary base 4
40.29
40.93
142.2
41.98
43.13
153.7
38.44
39.58
159.8
43.58
43.76
159.0'
42.39
42.50
158.8
40.09
40.45
158.2
40.21
41.26
159.5
40.42
41.52
160.9
39.17
40.73
160.7
38.44
39.58
159.8
5 Member bank deposits subject to reserve requirements 5
616.1
644.5
701.8
658.0
658.5
667.8
678.2
684.7
694.3
701.8
6 Time and savings
Demand
7
Private
8
U.S. government
428.7
451.2
504.0
467.9
467.0
474.2
482.0
486.7
494.0
504.0
185.1
2.2
191.5
1.8
196.0
1.9
188.4
1.7
189.1
2.5
191.5
2.1
194.5
1.8
195.6
2.4
198.1
2.2
196.0
1.9
Not seasonally adjusted
9 Monetary base 4
144.6
156.2
162.5
158.6
159.6
158.0
159.0'
160.6
161.5
162.5
10 Member bank deposits subject to reserve requirements 5
624.0
652.7
710.3
656.9
658.2
662.5
675.6
684.2
694.6
710.3
11 Time and savings
Demand
12
Private
13
U.S. government
429.6
452.1
505.0
467.4
466.0
471.8
479.6
485.7'
493.0
505.0
191.9
2.5
198.6
2.0
203.2
2.1
187.2
2.3
190.0
2.2
189.0
1.7
193.9
2.1
196.4
2.1
199.6
1.9
203.2
2.1
1. Reserves of depository institutions series reflect actual reserve requirement
percentages with no adjustment to eliminate the effect of changes in Regulations
D and M. Before Nov. 13, 1980, the date of implementation of the Monetary
Control Act, only the reserves of commercial banks that were members of the
Federal Reserve System were included in the series. Since that date the series
include the reserves of all depository institutions. In conjunction with the implementation of the act, required reserves of member banks were reduced about $4.3
billion and required reserves of other depository institutions were increased about
$1.4 billion. Effective Oct. 11, 1979, an 8 percentage point marginal reserve requirement was imposed on "Managed Liabilities." This action raised required
reserves about $320 million. Effective Mar. 12, 1980, the 8 percentage point marginal reserve requirement was raised to 10 percentage points. In addition the base
upon which the marginal reserve requirement was calculated was reduced. This
action increased required reserves about $1.7 million in the week ending Apr. 2,
1980. Effective May 29, 1980 the marginal reserve requirement was reduced from
10 to 5 percentage points and the base upon which the marginal reserve requirement
was calculated was raised. This action reduced required reserves about $980 million
in the week ending June 18, 1980. Effective July 24, 1980, the 5 percent marginal
reserve requirement on managed liabilities and the 2 percent supplementary reserve
requirement against large time deposits were removed. These actions reduced
required reserves about $3.2 billion.
2. Reserve measures for November reflect increases in required reserves associated with the reduction of weekend avoidance activities of a few large banks. The
reduction in these activities lead to essentially a one-time increase in the average
level of required reserves that need to be held for a given level of deposits entering
the money supply. In November, this increase in required reserves is estimated at
$550 to $600 million.
3. Reserve balances with Federal Reserve Banks plus vault cash at institutions
with required reserve balances plus vault cash equal to required reserves at other
institutions.
4. Includes reserve balances at Federal Reserve Banks in the current week plus
vault cash held two weeks earlier used to satisfy reserve requirements at all
depository institutions plus currency outside the U.S. Treasury, Federal Reserve
Banks, the vaults of depository institutions, and surplus vault cash at depository
institutions.
5. Includes total time and savings deposits and net demand deposits as defined
by Regulation D. Private demand deposits include all demand deposits except those
due to the U.S. government, less cash items in process of collection and demand
balances due from domestic commercial banks.
NOTE. Latest monthly and weekly figures are available from the Board's H.3(502)
statistical release. Back data and estimates of the impact on required reserves and
changes in reserve requirements are available from the Banking Section, Division
of Research and Statistics.
Monetary Aggregates
1.23
LOANS A N D SECURITIES
A15
All Commercial Banks'
Billions of dollars; averages of Wednesday figures
1977
Dec.
Category
1978
1980
1979
1980
1977
Dec.
Nov.
1 Total loans and securities
891.1
2 U.S. Treasury securities
3 Other securities
4 Total loans and leases2
5 Commercial and industrial loans
6
Real estate loans
7
Loans to individuals
8 Security loans
9
Loans to nonbank financial institutions .
10 Agricultural loans
11 Lease financing receivables
12 All other loans
99.5
159.6
632.1
211.2 s
175.2s
138.2
20.6
25.85
25.8
5.8
29.5
MEMO:
13 Total loans and securities plus loans sold2-9
2 9
14 Total loans plus loans sold 15 Total loans sold to affiliates 9
16 Commercial and industrial loans plus loans
sold 9
17 Commercial and industrial loans sold9 ..
18 Acceptances held
19 Other commercial and industrial loans ..
To U.S. addressees 11
20
To non-U.S. addressees
21
22 Loans to foreign banks
23 Loans to commercial banks in the
United States
1,014.33
1,132.54
93.4
173.P
747.83
246.56
210.5
163.9'
19.4
27.17
28.2
7.4
44.9 3 '
93.8
191.5
847.24
290.54
242.44
185.0'
18.3
30.34
31.0
9.5
40.2'
Nov.
Dec.
Not seasonally adjusted
1,221.2
109.3
212.5
899.4
318.4
258.3
174.8'
16.9
30.2
33.9
11.0
56. 0'
1,234.1
109.6
214.3
910.1
323.1
260.9
175.2
17.9
30.7
34.2
11.1
56.9
899.1
100.7
160.2
638.3
212.6s
175.5s
139.0
22.0
26.3 s
25.7
5.8
31.5
1,023.8*
1,143.04
94.6
173.93
755.43
248.2^
210.9
164.8'
20.7
27.67
28.1
7.4
47.63'
95.0
192.3
855.74
292.44
242.94
186.2'
19.6
30.84
30.8
9.5
43.5'
1,223.3
108.2
212.7
902.4
318.4
259.6
176.2'
17.2
30.3
34.0
11.0
55.8'
1,245.7
111.0
215.2
919.5
325.3
261.4
176.2
19.1
31.3
34.1
11.1
61.0
895.9
1,018.13
1,223.9
1,236.8
903.9
1,027.63
1,145.748
1,226.0
1,248.4
636.9
4.8
751.63
3.8
850.OO4-8
2.8*
902.1
2.6
912.8
2.7
643.0
4.8
759.23
3.8
858.44-8
2.8 s
905.1
2.6
922.2
2.7
213.95
2.7
7.5
203.7 s
193.8 s
9.9s
13.5
248.56-10
1.910
6.8
239.7
226.6
13.1
21.2
292.34-8
1.8s
8.5
282.0
263.2
18.8
18.7
320.1
1.7
8.7
309.7
287.6
22.1
24.6
324.9
1.8
7.8
315.3
293.5
21.8
24.0
215.3s
2.7
8.6
203.9s
193.7s
10.3 s
14.6
250.16-10
1.910
7.5
240.9
226.5
14.4
23.0
294 24-8
" L8 8
9.4
283.1
263.2
19.8
20.1
320.1
1.7
9.1
309.3
287.1
22.2
23.9
327.1
1.8
8.5
316.8
293.5
23.3
25.8
77.8
n.a.
n.a.
56.9
81.9
n.a.
n.a.
54.1
57.3
1,135.34*
1. Includes domestic chartered banks; U.S. branches, agencies, and New York
investment company subsidiaries of foreign banks; and Edge Act corporations.
2. Excludes loans to commercial banks in the United States.
3. As of Dec. 31, 1978, total loans and securities were reduced by $0.1 billion.
"Other securities" were increased by $1.5 billion and total loans were reduced by
$1.6 billion largely as the result of reclassifications of certain tax-exempt obligations.
Most of the loan reduction was in "all other loans."
4. As of Jan. 3, 1979, as the result of reclassifications, total loans and securities
and total loans were increased by $0.6 billion. Business loans were increased by
$0.4 billion and real estate loans by $0.5 billion. Nonbank financial loans were
reduced by $0.3 billion.
5. As of Dec. 31, 1977, as the result of loan reclassifications, business loans were
reduced $0.2 billion and nonbank financial loans $0.1 billion; real estate loans were
increased $0.3 billion.
6. As of Dec. 31, 1978, commercial and industrial loans were reduced $0.1 billion
as a result of reclassifications.
1979
Dec.
Dec.
Seasonally adjusted
2
1978
Dec.
60.3
7. As of Dec. 1, 1978, nonbank financial loans were reduced $0.1 billion as the
result of reclassification.
8. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million and
commercial and industrial loans sold were reduced $700 million due to corrections
of two banks in New York City.
9. Loans sold are those sold outright to a bank's own foreign branches, nonconsolidated nonbank affiliates of the bank, the bank's holding company (if not
a bank), and nonconsolidated nonbank subsidiaries of the holding company.
10. As of Dec. 31. 1978. commercial and industrial loans sold outright were
increased $0.7 billion as the result of reclassifications, but $0.1 billion of this amount
was offset by a balance sheet reduction of $0.1 billion as noted above.
11. United States includes the 50 states and the District of Columbia.
NOTE. Data are prorated averages of Wednesday data for domestic chartered
banks, and averages of current and previous montn-end data for foreign-related
institutions.
A16
1.24
DomesticNonfinancialStatistics • February 1981
MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS'
Monthly averages, billions of dollars
December outstanding
Outstanding in 1980
Source
1977
1978
1979
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Total nondeposit funds
Seasonally adjusted 2
Not seasonally adjusted
Federal funds, RPs, and other borrowings from non-
61.8
60.4
85.4
84.4
118.8
117.4
124.2
121.1
119.9
123.0
114.1
114.2
112.2
116.4
107.3
110.3
112.0
112.5
118.6
119.6
n.a.
n.a.
n.a.
n.a.
3 Seasonally adjusted 3
4 Not seasonally adjusted
5 Net Eurodollar borrowings, not seasonally adjusted
6 Loans sold to affiliates, not seasonally adjusted 4 - 5 .
58.4
57.0
-1.3
4.8
74.8
73.8
6.8
3.8
88.0
86.5
28.1
2.8
94.7
91.7
26.9
2.6
94.2
97.4
23.0
2.6
96.7
96.8
14.6
2.8
98.5
102.7
10.9
2.8
94.0
97.1
10.3
2.9
100.2
100.8
8.9
2.9
104.4
105.4
11.5
2.8
n.a.
n.a.
7.5
2.6
n.a.
n.a.
7.0
2.7
-12.5
21.1
8.6
-10.2
24.9
14.7
6.5
22.8
29.3
5.9
24.4
30.4
2.6
27.3
30.0
-5.4
30.1
24.7
-8.4
32.7
24.3
-10.3
35.8
25.5
-14.5
38.2
23.7
-12.9
38.3
25.5
-14.2
37.2
23.0
-14.7
37.5
22.7
11.1
10.3
21.4
36.3
35.1
17.0
14.2
31.2
44.8
43.6
21.6
28.9
50.5
49.2
47.9
20.9
28.4
49.4
45.3
44.3
20.5
28.4
48.8
43.7
46.0
19.9
28.5
48.4
49.0
48.8
19.3
30.8
50.1
55.0
54.7
20.6
30.9
51.6
57.5
59.1
23.3
30.3
53.6
56.2
58.7
24.4
30.8
55.2
59.7
59.5
21.7
32.3
54.1
58.8
60.9
21.7
33.7
55.4
63.4
61.7
4.4
5.1
8.7
10.3
8.1
9.7
8.6
9.0
9.5
8.5
8.6
10.0
10.9
9.3
11.8
9.3
12.6
14.2
14.0
12.7
6.9
6.6
7.6
9.0
162.0
165.4
213.0
217.9
227.6
232.8
240.2
238.3
242.1
240.2
237.6
235.5
234.0
230.0
234.4
232.1
238.8
236.7
241.6
241.1
249.3
250.8
257.5
263.4
1
2
MEMO
7 Domestic chartered banks net positions with own
foreign branches, not seasonally adjusted 6 . . . .
8 Gross due from balances
Gross due to balances
9
10 Foreign-related institutions net positions with directly related institutions, not seasonally
adjusted 7
11 Gross due from balances
12 Gross due to balances
13 Security RP borrowings, seasonally adjusted 8
14 Not seasonally adjusted
15 U.S. Treasury demand balances, seasonally
adjusted*
16 Not seasonally adjusted
17 Time deposits, $100,000 or more, seasonally
adjusted 10
18 Not seasonally adjusted
1. Commercial banks are those in the 50 states and the District of Columbia with
national or state charters plus U.S. branches, agencies, and New York investment
company subsidiaries of foreign banks and Edge Act corporations.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from
nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. Includes averages of Wednesday data for domestic chartered banks and averages of
current and previous month-end data for foreign-related institutions.
3. Other borrowings are borrowings on any instrument, such as a promissory
note or due bill, given for the purpose of borrowing money for the banking business.
This includes borrowings from Federal Reserve Banks and from foreign banks,
term federal funds, overdrawn due from bank balances, loan RPs, and participations in pooled loans. Includes averages of daily figures for member banks and
averages of current and previous month-end data for foreign-related institutions.
4. Loans initially booked by the bank and later sold to affiliates that are still
held by affiliates. Averages of Wednesday data.
5. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million due to
corrections of two New York City banks.
6. Includes averages of daily figures for member banks and quarterly call report
figures for nonmember banks.
7. Includes averages of current and previous month-end data until August 1979;
beginning September 1979 averages of daily data.
8. Based on daily average data reported by 122 large banks beginning February
1980 and 46 banks before February 1980.
9. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
10. Averages of Wednesday figures.
NOTE: Security RP borrowings, U.S. Treasury demand balances, and time deposits in denomination of $100,000 or more have revised to reflect benchmark
adjustments to call reports.
Commercial Banks
1.25
ASSETS A N D LIABILITIES OF C O M M E R C I A L B A N K I N G INSTITUTIONS
A17
Last-Wednesday-of-Month Series
Billions of dollars except for number of banks
1981
1980
Account
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
1,087.2
799.0
258.3
540.7
93.5
193.9
1.089.5
798.8
259.2
539.6
93.9
197.2
1.083.1
789.7
256.0
533.7
95.2
199.5
1.086.6
790.4
256.8
533.6
97.6
201.0
1.091.5
790.6
256.4
534.1
100.3
203.3
1.104.7
799.1
258.7
540.3
102.1
205.3
1.115.1
806.9
262.9
543.9
103.3
206.1
1.132.3
819.5
268.2
551.3
106.0
209.4
1.148.0
830.5
274.8
555.7
1 10.0
211.5
1. 174.5
849.3
280.7
568.6
110.8
215.1
1.163.5
838.2
276.9
561.3
1 10.8
214.4
153.8
16.8
34.2
43.1
59.8
168.2
16.8
33.2
49.7
68.6
172.4
17.8
37.9
47.9
68.9
150.4
17.4
29.5
45.4
58.0
154.1
17.7
32.1
44.7
59.6
148.7
18.4
28.9
45.6
55.8
156.6
18.0
31.2
46.6
60.9
156.0
18.5
31.6
47.0
58.8
175.7
17.1
30.3
56.2
72.2
194.4
20.2
28.2
63.0
83.0
159.4
18.9
25.1
54.9
60.5
DOMESTICALLY CHARTERED
COMMERCIAL BANKS 1
2
3
4
5
6
Loans and investments, excluding
interbank
Loans, excluding interbank
Commercial and industrial
Other
U.S. Treasury securities
Other securities
7
8
9
10
11
Cash assets, total
Currency and coin
Reserves with Federal Reserve Banks
Balances with depository institutions
Cash items in process of collection ..
12
Other assets2
121.7
135.7
140.1
144.0
143.8
150.4
154.6
154.9
15 1 . 5
166.8
1.52.2
13
Total assets/total liabilities and capital ..
1,362.7
1,393.5
1,395.7
1,381.0
1,389.4
1,403.8
1,426.3
1,443.2
1,475.2
1,535.6
1,475.1
14
15
16
17
Deposits
Demand
Savings
Time
1.032.1
354.5
196.5
481.1
1.060.0
377.4
189.3
493.4
1.057.3
370.2
192.3
494.8
1.044.7
358.0
197.8
488.9
1.050.1
363.6
205.7
480.8
1.059.5
363.4
208.7
487.4
1.074.9
370.0
209.4
495.5
1.091.1
376.3
211.4
503.5
1.124.3
393.4
520.9
1. 185.4
432.7
201.8
550.9
1.127.1
351.7
212.4
563.0
18
19
20
Borrowings
Other liabilities
Residual (assets less liabilities)
142.1
84.2
104.2
147.0
81.2
105.2
154.1
78.5
105.7
152.5
76.6
107.1
158.6
74.8
106.0
160.1
76.2
108.0
165.3
76.4
109.6
163.4
75.6
113.1
159.0
79.0
112.9
156.8
80.0
113.5
158.2
77.6
112.3
9.4
14.626
14.3
14.629
5.1
14.639
13.1
14.646
7.6
14.658
8.7
14.666
15.2
14.678
11.5
14.760
4.4
14.692
9.5
14.693
8.6
14.689
1.156.6
865.0
301.7
563.4
96.2
195.4
1.158.8
864.7
302.0
562.7
95.5
198.6
1.151.2
854.4
298.1
556.2
95.9
201.0
1.157.1
857.4
297.8
559.6
97.2
202.4
1.192.4
877.0
307.1
573.1
104.5
207.7
174.0
16.8
35.0
61.1
61.2
187.3
16.8
33.9
66.6
69.9
190.7
17.8
38.7
63.8
70.4
172.0
17.4
30.3
64.6
59.7
179.8
18.0
31.7
67.6
62.5
n.a.
n. a.
n.,a.
n. a.
1
MEMO:
21
22
U.S. Treasury note balances included in
borrowing
Number of banks
ALL COMMERCIAL BANKING
INSTITUTIONS3
24
25
26
27
28
Loans and investments, excluding
interbank
Loans, excluding interbank
Commercial and industrial
Other
U.S. Treasury securities
Other securities
29
30
31
32
33
Cash assets, total
Currency and coin
Reserves with Federal Reserve Banks
Balances with depository institutions
Cash items in process of collection ..
34
Other assets2
166.8
181.1
186.1
190.3
204.4
35
Total assets/total liabilities and capital . .
1,497.5
1,527.2
1,528.0
1,519.4
1,576.6
36
37
38
39
Deposits
Demand
Savings
Time
1.073.5
373.6
196.7
503.2
1.101.1
396.6
189.5
515.0
1.097.1
387.7
192.6
516.9
1.088.7
379.1
198.2
511.4
1.122.2
391.2
209.8
521.2
40
41
42
Borrowings
Other liabilities
Residual (assets less liabilities)
186.5
130.9
106.5
190.8
127.8
107.4
196.3
126.6
108.1
197.9
124.1
108.7
212.6
130.6
111.2
9.4
14.995
14.3
15.004
5.1
15.016
13.1
15.019
15.2
15.069
23
n .a.
n.;n.
MEMO:
43
44
U.S. Treasury note balances included in
borrowing
Number of banks
1. Domestically chartered commercial banks include all commercial banks in the
United States except branches of foreign banks: included are member and nonmember banks, stock savings banks, and nondeposit trust companies.
2. Other assets include loans to U.S. commercial banks.
3. Commercial banking institutions include domestically chartered commercial
banks, branches and agencies of foreign banks. Edge Act and Agreement corporations, and New York State foreign investment corporations.
NOTE. Figures are partly estimated. They include all bank-premises subsidiaries
and other significant majority-owned domestic subsidiaries. Data for domestically
chartered commercial banks are for the last Wednesday of the month: data for
other banking institutions are for last Wednesday except at end of quarter, when
they are for the last day of the month.
A18
1.26
DomesticNonfinancialStatistics • February 1981
A L L L A R G E W E E K L Y R E P O R T I N G C O M M E R C I A L B A N K S with Domestic Assets of $750 Million or More on
December 31, 1977, Assets and Liabilities
Millions of dollars, Wednesday figures
1980
1981
Account
Dec. 3
1 Cash items in process of collection
2 Demand deposits due from banks in the United
States
3 All other cash and due from depository institutions
4 Total loans and securities
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Securities
U.S. Treasury securities
Trading account
Investment account, by maturity
One year or less
Over one through five years
Over five years
Other securities
Trading account
Investment account
U.S. government agencies
States and political subdivision, by maturity . .
One year or less
Over one year
Other bonds, corporate stocks and securities .
Loans
19 Federal funds sold1
20 To commercial banks
21 To nonbank brokers and dealers in securities .. .
22 To others
23 Other loans, gross
24
Commercial and industrial
25
Bankers acceptances and commercial paper ..
26
Allother
27
U.S. addressees
28
Non-U.S. addressees
29 Real estate
30 To individuals for personal expenditures
To financial institutions
31
Commercial banks in the United States
32
Banks in foreign countries
33
Sales finance, personal finance companies, etc
34
Other financial institutions
35 To nonbank brokers and dealers in securities . . .
36 To others for purchasing and carrying securities2
37 To finance agricultural production
38 All other
39 LESS: Unearned income
40
Loan loss reserve
41 Other loans, net
42 Lease financing receivables
43 All other assets
44 Total assets
Deposits
45 Demand deposits
46
Mutual savings banks
47
Individuals, partnerships, and corporations
48 States and political subdivisions
49
U.S. government
50
Commercial banks in the United States
51 Banks in foreign countries
52
Foreign governments and official institutions .. .
53 Certified and officers' checks
54 Time and savings deposits
55
Savings
56
Individuals and nonprofit organizations
57
Partnerships and corporations operated for
profit
58
Domestic governmental units
59
All other
60 Time
61
Individuals, partnerships, and corporations . . .
62
States and political subdivisions
63
U.S. government
64
Commercial banks in the United States
65
Foreign governments, official institutions, and
banks
Liabilities for borrowed money
66
Borrowings from Federal Reserve Banks
67 Treasury tax-and-loan notes
68
All other liabilities for borrowed money 3
69 Other liabilities and subordinated notes and
debentures
70 Total liabilities
71 Residual (total assets minus total liabilities)4
Dec. 10
Dec. 17
Dec. 24
Dec. 31 P
57,523
53,041
59.847
58,349
66,135
56,771
19,552
24,939
18,350
28,822
19,445
36,903
19.693
34,051
21,616
34,259
21,679
31,220
554,114
553,537
556,070
555,851
564,173
39,409
4,987
34,422
9,161
21,947
3,314
77,106
3,132
73,974
15,813
55,363
7,398
47,965
2,798
39.556
5,175
34,381
9,201
21,846
3,334
77,755
3,781
73,974
15,801
55,393
7,380
48,013
2,780
39,179
4,788
34,391
9,166
21,821
3,404
77,302
3,018
74,284
16,025
55,505
7,403
48,102
2,754
37,984
3,883
34,101
9,096
21,691
3,313
77,806
3,067
74,739
16,220
55,726
7,415
48,311
2,792
30,173
22,110
5,621
2,442
420,241
172,262
4,104
168,158
161,191
6,968
110,734
71,295
29,109
20,201
6,092
2,816
419,975
172,758
3.952
168,806
161,944
6,862
111,023
71,481
28,057
20,644
5,540
1,873
424,377
174,015
3,709
170,306
163,213
7,093
111,304
71,824
4,142
8,600
9,276
15,566
6,795
2,155
5,331
14,083
7,004
5,811
407,426
9,094
83,118
3.568
8.638
9,597
15,513
6,251
2,185
5.282
13,678
7,040
5,818
407.117
9,091
82,808
748,341
Jan. 14 P
bank,
1980
Jan. 21P
Jan. 28P
56,394
52,111
49,658
33
19,508
35,746
20,194
29,750
20,352
30.958
90
-239
567,897
561,445
557,275
553,178
1,435
39,605
4,363
35,242
10,269
21,616
3,357
78,443
3,315
75,128
16,229
56,062
7,394
48,668
2,837
40,667
6,399
34,268
9,591
21,274
3,403
78,630
3,327
75,303
16.348
56,137
7.273
48,864
2,818
40,457
6,616
33,841
9,353
20,990
3,498
77,734
2,531
75,203
16,214
56,130
7,201
48,929
2,858
40,333
6,552
33,780
9,331
20,950
3,500
77,384
2,308
75,076
16,132
56,101
7,202
48,899
2,843
39,777
6,339
33,438
9,178
20,790
3,469
77,560
2,510
75,051
16,124
56,063
7,244
48,819
2,864
27,484
19,401
6,054
2,028
425,361
172,637
3,696
168,941
161,871
7,069
111,480
72,380
27,873
19,468
6,414
1,990
430,569
174,862
4,206
170,656
163,373
7,283
111,754
72,308
33,997
24,103
7,854
2,040
427,039
173,230
4,218
169,012
161,773
7,238
112,212
72,625
30,181
21,822
6,059
2,300
425,570
173,116
4,632
168,484
161,194
7,290
112,534
72.389
29,019
19,072
7,359
2,588
423,054
171,922
3,957
167,965
160,597
7,368
112,631
72,132
26,781
18,171
6,366
2,244
421,559
171,414
4,191
167,223
159,818
7,405
112,866
71,954
4,245
8,812
10,446
15,883
6,471
2,198
5,284
13,894
7,040
5,806
411,531
9,103
83,298
4,937
9,541
9,977
15,638
6,144
2,168
5,300
15,158
7,033
5,750
412,578
9,143
84,340
5,310
9,702
10,076
15,921
7,842
2,154
5,413
15,227
6,659
5,658
418,252
9,323
87,679
4,538
9,442
10,231
15,591
6,928
2,103
5,358
14,781
6,696
5.740
414,603
9.309
83,686
4,674
9,434
9,999
15,390
6,404
2,170
5,332
14,126
6,767
5,731
413,072
9,500
85,436
4,094
9,701
9,966
15,267
5,748
2,140
5,306
14,147
6,772
5,743
410,539
9,518
82,347
4,220
8,952
9,934
15,291
5,548
2,198
5,335
13,845
6,752
5,748
409,060
9,595
82,035
745,650
764,666
761,427
783,186
770,563
768,029
751,195
745,778
208,807
718
144,843
4,804
2,963
36,783
7,661
2,149
8,884
300,957
74,976
70,287
200,310
602
141,117
4,641
2,077
33,160
8,797
1,870
8,046
302,872
74,344
69,744
208,365
619
145,550
4,804
1,248
37,400
7,931
1,477
9,335
305,889
73,406
69,000
208,168
700
145,234
4,885
1,457
37,607
8,884
2,020
7,381
311,016
71,643
67,416
228,294
838
158,403
5,835
1,107
41,431
8,994
2,459
9,227
313,979
72,557
68,303
207,061
744
142,451
5.126
1,609
39,132
7,820
1,658
8,519
316,497
75,211
70,964
202.528
713
140,643
4,817
1,835
37,146
7,560
1,475
8,338
316,514
75,171
70,920
191,408
611
132,416
5,178
1,465
34,091
8,349
1,822
7,474
318,849
75,244
71,132
185,619
574
127,993
4,846
1,676
34,045
8,047
1,457
6,980
320,888
74,301
70.166
4,021
649
19
225,981
193,223
19,872
291
6,285
3,983
598
20
228,527
195,394
19,817
292
6,614
3,781
605
21
232,483
198,484
19,897
270
7,454
3,633
567
26
239,373
203,867
20,434
301
8,135
3,596
636
23
241,422
205,830
20,185
300
8,421
3,538
689
20
241,286
206,273
19,967
301
8,175
3,556
673
22
241,343
206,392
20,008
314
8,233
3,452
637
23
243,605
208,209
20,239
297
8,558
3,482
631
21
246,587
210,739
20,750
309
8,448
6,309
6,411
6,377
6,636
6,686
6,569
6,396
6,302
6,340
740
432
126,742
1,322
168
128,838
725
5,590
129,342
656
7,022
122,448
1,055
6,696
119,826
316
2,803
133,397
1,950
2,408
134,613
582
4,385
125,522
467
5,987
121,101
60,784
62,387
65,126
62,570
63,120
60.192
59,774
60,213
61,289
74
698,462
695,898
715,038
711,880
732,970
720,266
717,786
700,959
695,351
1,354
49,878
49,752
49,628
49.547
50,216
50,297
50,243
50,236
50,426
120
1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes federal funds purchased and securities sold under agreements to
repurchase; for information on these liabilities at banks with assets of $1 billion
or more on Dec. 31, 1977, see table 1.13.
FRASER
Digitized for
Jan.
IP
148
148
71
76
1
106
106
50
58
11
48
-3
38
38
1,192
354
354
354
448
377
-6
7
1
2
6
3
37
11
1,143
155
1,475
391
325
17
2
9
11
26
861
296
271
19
5
565
479
79
5
2
29
4. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.
Weekly Reporting Banks
1.27
A19
LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1 Billion or More on
December 31, 1977, Assets and Liabilities
Millions of dollars, Wednesday figures
Dec. 3
1 Cash items in process of collection
2 Demand deposits due from banks in the United States . . .
3 All other cash and due from depository institutions
4 Total loans and securities
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Securities
U.S. Treasury securities
Trading account
Investment account, by maturity
One year or less
Over one through five years
Over five years
Other securities
Trading account
Investment account
U.S. government agencies
States and political subdivision, by maturity
One year or less
Over one year
Other bonds, corporate stocks and securities
Loans
19 Federal funds sold1
20 To commercial banks
21 To nonbank brokers and dealers in securities
22 To others
23 Other loans, gross
24
Commercial and industrial
25
Bankers acceptances and commercial paper
26
All other
27
U.S. addressees
28
Non-U.S. addressees
29 Real estate
30 To individuals for personal expenditures
To financial institutions
31
Commercial banks in the United States
32
Banks in foreign countries
33
Sales finance, personal finance companies, etc
34
Other financial institutions
35 To nonbank brokers and dealers in securities
36 To others for purchasing and carrying securities2
37 To finance agricultural production
38 Allother
39 LESS: Unearned income
40
Loan loss reserve
41 Other loans, net
42 Lease financing receivables
43 All other assets
44 Total assets
Deposits
45 Demand deposits
46
Mutual savings banks
47
Individuals, partnerships, and corporations
48
States and political subdivisions
49
U.S. government
50
Commercial banks in the United States
51 Banks in foreign countries
52 Foreign governments and official institutions
53 Certified and officers' checks
54 Time and savings deposits
55 Savings
56
Individuals and nonprofit organizations
57
Partnerships and corporations operated for profit . . .
58
Domestic governmental units
59
Allother
60 Time
61
Individuals, partnerships, and corporations
62
States and political subdivisions
63
U.S. government
64
Commercial banks in the United States
65
Foreign governments, official institutions, and banks
Liabilities for borrowed money
66
Borrowings from Federal Reserve Banks
67 Treasury tax-and-loan notes
68 All other liabilities for borrowed money 3
69 Other liabilities and subordinated notes and debentures
70 Total liabilities
71 Residual (total assets minus total liabilities)
4
Dec. 10 Dec. 17 Dec. 24
Jan.
IP
Jan. 14P
Jan. 21 P
Jan. 28P
bank,
1980
54,702
18,959
23,151
50,479
17,797
26,935
57,025
18,844
34,599
55,348
18,858
31,626
62,721
20,871
31,837
54,006
20,849
29,210
53,483
18,840
33,559
49,135
19,538
27,536
47,182
19,689
28,738
33
-19
-241
517,051
516,512
518,945
518,739
526,062
529,603
523,956
520,108
516,504
1,368
36,618
4,926
31,692
8,491
20,240
2,960
70,725
3,075
67,650
14,585
50,440
6,607
43,833
2,625
36,784
5,140
31,644
8,516
20,152
2,976
71,334
3,714
67,621
14,547
50,466
6,597
43,869
2,607
36,403
4,747
31,655
8,484
20,125
3,046
70,827
2,939
67,888
14,745
50,562
6,610
43,952
2,580
35,190
3,842
31,348
8,410
19,996
2,941
71,289
2,999
68,290
14,895
50,777
6,622
44,155
2,618
36,650
4,314
32,337
9,475
19,886
2,976
71,897
3,233
68,664
14,903
51,097
6,584
44,514
2,663
37,812
6,349
31,463
8,852
19,588
3,022
72,033
3,226
68,806
14,988
51,189
6,489
44,700
2,629
37,671
6,555
31,115
8,704
19,294
3,117
71,182
2,461
68,722
14,868
51,183
6,407
44,776
2,671
37,502
6,473
31,029
8,678
19,228
3,124
70,869
2,239
68,630
14,829
51,145
6,404
44,741
2,656
36,981
6,267
30,715
8,524
19,097
3,094
71,036
2,426
68,610
14,822
51,096
6,442
44,654
2,692
146
26,768
19,228
5,143
2,398
394,780
163,502
3,885
159,617
152,718
6,898
104,408
62,865
25,802
17,317
5,705
2,780
394,472
164,025
3,754
160,271
153,477
6,794
104,676
63,013
24,895
17,937
5,131
1,827
398,688
165,193
3,504
161,689
154,666
7,023
104,931
63,318
24,593
17,046
5,550
1,996
399,480
163,810
3,495
160,315
153,316
6,998
105,106
63,791
24,361
16,485
5,917
1,959
404,506
165,920
4,006
161,913
154,701
7,212
105,381
63,646
30,163
20,919
7,233
2,011
401,055
164,350
4,015
160,334
153,167
7,167
105,777
63,937
26,912
19,033
5,606
2,273
399,711
164,253
4,435
159,818
152,600
7,218
106,111
63,727
25,950
16,711
6,677
2,563
397,322
163,142
3,767
159,375
152,080
7,295
106,194
63,492
24,058
15,998
5,839
2,221
395,953
162,702
4,008
158,694
151,362
7,332
106,432
63,376
37
37
4,018
8,523
9,092
15,158
6,724
1,910
5,175
13,405
6,365
5,475
382,940
8,827
80,884
3,437
8,557
9,413
15,112
6,175
1,937
5,128
12,999
6,399
5,481
382,591
8,824
80,727
4,126
8,722
10,274
15,471
6,380
1,955
5,130
13,188
6,396
5,472
386,820
8,836
81,116
4,782
9,454
9,796
15,233
6,058
1,922
5,143
14,384
6,395
5,417
387,667
8,876
82,145
5,179
9,624
9,910
15,519
7,701
1,909
5,259
14,457
6,029
5,323
393,154
9,050
85,190
4,420
9,339
10,069
15,190
6,830
1,866
5,209
14,069
6,062
5,398
389,595
9,038
81,493
4,556
9,362
9,836
15,007
6,306
1,944
5,185
13,424
6,132
5,387
388,191
9,230
83,233
3,990
9,629
9,806
14,888
5,662
1,902
5,163
13,454
6,130
5,406
385,786
9,246
80,099
4,103
8,880
9,777
14,921
5,456
1,965
5,192
13,148
6,115
5,410
384,427
9,324
79,787
703,574
701,274
719,365
715,591
735,731
724,200
722,302
705,663
701,223
196,054 188,074 195,692
596
687
574
134,851 131,275 135,427
4,265
4,283
4,145
1,929
1,098
2,723
36,002
35,247
31,862
7,819
7,573
8,706
1,472
1,854
2,119
9,013
8,571
7,729
280,511 282,393 285,320
67,870
68,740
69,328
63,819
65,002
64,503
3,669
3,486
3,712
544
547
595
21
19
20
211,183 213,653 217,449
180,603 182,696 185,621
17,929
18,026
17,975
255
277
276
7,170
6,340
6,020
6,377
6,309
6,411
195,178
671
134,785
4,251
1,330
36,280
8,801
2,003
7,055
290,213
66,241
62,347
3,351
517
26
223,971
190,702
18,525
2°-6
7,823
6,636
213,896
806
147,094
5,192
990
39,774
8,879
2,454
8,706
293,037
67,120
63,213
3,311
573
23
225,917
192,601
18,249
284
8,096
6,686
194,105
712
132,200
4,560
1,424
37,638
7,743
1,657
8,170
295,181
69,484
65,574
3,267
622
20
225,697
192,965
18,027
285
7,852
6,569
190,014
688
130,831
4,190
1,579
35,768
7,481
1,474
8,002
295,220
69,387
65,465
3,288
611
22
225,834
193,103
18,118
298
7,918
6,396
179,115
581
122,959
4,437
1,114
32,743
8,272
1,821
7,188
297,578
69,511
65,726
3,184
577
23
228,067
194,930
18,318
282
8,235
6,302
174,276
551
119,131
4,227
1,477
32,772
7,954
1,454
6,709
299,661
68,635
64,841
3,208
565
21
231,026
197,460
18,814
294
8,118
6,340
146
69
76
1
103
103
50
56
8
48
-3
1,128
339
339
339
418
362
-6
7
1
2
6
-1
35
11
1,081
153
1,295
302
240
15
2
9
11
26
774
238
214
19
5
536
451
79
5
2
603
360
120,033
59,386
1,298
128
121,931
60,966
640
5,223
122,403
63,725
543
6,527
115,692
61,155
972
6,225
113,098
61,558
211
2,555
126,525
58,621
1,816
2,185
127,826
58,294
540
3,997
118,666
58,816
368
5,516
114,383
59,899
27
73
656,948
654,790
673,002
669,307
688,786
677,199
675,355
658,711
654,102
1,176
46,625
46,484
46,364
46,284
46,945
47,001
46,946
46,951
47,121
118
1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes federal funds purchased and securities sold under agreement to repurchase; for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31, 1977, see table 1.13.
Dec. 31 P
4. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.
A20
1.28
DomesticNonfinancialStatistics • February 1981
LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures
1980
1981
Account
1 Cash items in process of collection
2 Demand deposits due from banks in the United States . . .
3 All other cash and due from depository institutions
4 Total loans and securities1
5
6
7
8
y
1U
11
17
13
14
15
16
17
18
Securities
U.S. Treasury securities2
Trading account 2
Investment account, by maturity
One year or less
Over one through five years
Over five years
Other securities2
Trading account2
Investment account
U.S. government agencies
States and political subdivision, by maturity
One year or less
Over one year
Other bonds, corporate stocks and securities
Loans
19 Federal funds sold3
20 To commercial banks
21 To nonbank brokers and dealers in securities
22 Toothers
23 Other loans, gross
24 Commercial and industrial
25
Bankers acceptances and commercial paper
2b
Allother
27
U.S. addressees
28
Non-U.S. addressees
29 Real estate
30 To individuals for personal expenditures
31 To financial institutions
Commercial banks in the United States
32
Banks in foreign countries
33
Sales finance, personal finance companies, etc
34
Other financial institutions
35 To nonbank brokers and dealers in securities
36 To others for purchasing and carrying securities4
37 To finance agricultural production
38 Allother
39 LESS: Unearned income
40
Loan loss reserve
41 Other loans, net
42 Lease financing5 receivables
43 All other assets
44 Total assets
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
Deposits
Demand deposits
Mutual savings banks
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Time and savings deposits
Savings
Individuals and nonprofit organizations
Partnerships and corporations operated for profit . . .
Domestic governmental units
Allother
Time
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks in the United States
Foreign governments, official institutions, and banks
Liabilities for borrowed money
Borrowings from Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money 6
Other liabilities and subordinated notes and debentures ..
70 Total liabilities
71 Residual (total assets minus total liabilities)4
1.
2.
3.
4.
Excludes trading account securities.
Not available due to confidentiality.
Includes securities purchased under agreements to resell.
Other than financial institutions and brokers and dealers.
Dec. 3
Dec. 10
Dec. 17
Dec. 24
21,348
13,340
6,480
20,636
12,850
7,223
23,140
13,237
11,737
19,879
12,343
8,528
24,782
14,724
7,742
125,853
124,994
125,774
126,070
8,440
1,402
6,500
538
8,446
1,437
6,471
538
8,474
1,442
6,494
539
13,803
2,312
10,885
1,835
9,050
606
13,809
2,307
10,894
1,822
9,072
608
8,831
5,399
2,317
1,116
97,737
51,105
894
50,211
47,976
2,235
14,573
9,148
Dec. 31 P
Jan.
Jan. 14 P
Jan. 21 P
Jan. 28P
20,614
15,101
8,286
21,628
13,387
11,388
18,696
14,305
5,904
18,644
14,527
7,178
129,586
129,279
126,775
125,235
123,296
8,320
1,438
6,343
539
8,418
1,454
6,412
551
8,238
1,585
6,113
539
7,990
1,619
5,817
554
7,990
1,593
5,848
549
7,985
1,614
5,834
537
13,802
2,302
10,890
1,809
9,081
611
13,859
2,301
10,946
1,825
9,121
613
13,676
2,305
10,750
1,664
9,087
620
13,752
2,319
10,797
1,668
9,129
636
13,698
2,303
10,753
1,562
9,190
642
13,702
2,298
10,776
1,562
9,214
627
13,765
2,296
10,757
1,554
9,203
622
7,889
4,044
2,888
957
97,824
51,780
832
50,948
48,682
2,266
14,611
9,187
6,790
3,292
2,747
751
99,672
51,864
594
51,269
48,884
2,385
14,651
9,242
7,189
3,555
2,676
957
99,667
50,754
537
50,217
47,854
2,364
14,741
9,318
7,284
3,461
3,061
762
103,141
51,836
767
51,068
48,558
2,510
14,826
9,369
9,819
5,414
3,605
801
100,435
51,243
790
50,453
47,995
2,458
14,816
9,446
7,994
4,210
2,678
1,105
100,084
51,551
1,183
50,368
47,784
2,584
14,890
9,392
7,780
3,914
2,890
976
98,762
51,082
942
50,140
47,528
2,612
14,891
9,403
7,254
3,836
2,545
872
97,385
50,680
1,056
49,624
47,010
2,614
14,941
9,396
1,413
4,110
3,836
4,453
3,932
413
506
4,247
1,134
1,825
94,778
1,705
33,346
1,218
4,056
4,141
4,486
3,478
428
492
3,948
1,139
1,836
94,848
1.705
33,746
1,607
4,221
4,718
4,668
3,628
460
481
4,132
1,140
1,824
96,708
1,710
33,707
2,043
4,780
4,371
4,690
3,394
420
461
4,694
1,164
1,801
96,702
1,711
33,741
2,081
4,990
4,395
4,848
4,838
405
435
5,117
1,149
1,783
100,208
1,758
37,241
1,502
4,689
4,547
4,703
3,960
395
439
4,695
1,157
1,809
97,470
1,768
36,975
1,660
4,686
4,342
4,621
3,602
431
444
4,465
1,187
1,804
97,093
1,966
38,782
1,268
4,918
4,238
4,562
3,055
424
447
4,474
1,190
1,808
95,764
1,966
34,272
1,280
4,260
4,181
4,454
3,024
472
422
4,274
1,198
1,804
94,382
1,973
34,615
202,072
201,153
209,305
202,273
215,832
212,022
213,926
200,380
200,234
68,558
339
34,564
414
694
20,534
5,947
1,836
4,230
54,851
9,858
9,379
350
124
5
44,992
38,381
1,781
22
1,992
2,817
66,066
285
33,358
353
484
19,248
6,949
1,487
3,900
54,910
9,788
9,325
341
117
6
45,122
38,500
1,763
21
1,993
2,845
69,820
290
35,004
330
294
21,818
6,080
1,186
4,818
55,866
9,666
9,239
320
99
7
46,201
39,570
1,703
21
2,149
2,758
67,066
350
33,694
421
333
20,592
6,868
1,645
3,162
56,994
9,480
9,063
311
98
8
47,514
40,761
1,600
14
2,278
2,860
77,180
436
38,646
578
173
24,145
7,045
2,073
4,083
57,318
9,547
9,124
308
107
8
47,770
41,064
1,436
14
2,370
2,886
69,113
383
33,926
366
350
23,240
5,832
1,355
3,662
57,961
9,558
9,131
305
115
6
48,403
41,882
1,384
14
2,305
2,818
69,240
363
35,087
467
401
22,373
5,680
1,139
3,731
57,590
9,476
9,059
297
113
7
48,114
41,575
1,339
22
2,460
2,719
64,510
307
32,596
528
291
19,279
6,607
1,523
3,379
57,962
9,330
8,928
290
104
7
48,633
42,044
1,413
25
2,515
2,636
64,199
285
32,274
525
352
20,231
6,184
1,160
3,186
58,096
9,150
8,746
289
111
4
48,946
42,395
1,508
24
2,347
2,672
31
39,706
23,346
1,703
40,165
26,201
1,941
37,392
23,538
475
1,833
37',976
25,296
95
45,713
23,402
1,490
1
47,020
22,958
I
1
39,391
24,435
39,535
22,816
38,223
24,175
186,492
185,617
193,755
186,931
200,077
196,283
198,300
184,825
184,695
15,580
15,536
15,550
15,341
15,755
15,738
15,627
15,555
15,539
815
1P
5. Includes trading account securities.
6. Includes federal funds purchased and securities sold under agreements to
repurchase
7. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.
Weekly Reporting Banks
1.29
LARGE WEEKLY REPORTING COMMERCIAL BANKS
A21
Balance Sheet Memoranda
Millions of dollars, Wednesday figures
1980
Dec. 3
1981
Dec. 10
Dec. 17
Dec. 24
Dec. 31p
Jan.
IP
Jan.
14P
Jan. 21 P
Jan.
28P
BANKS WITH ASSETS OF $ 7 5 0 MILLION OR M O R E
1 Total loans (gross^ and securities adjusted 1
2 Total loans (gross) adjusted 1
3 Demand deposits adjusted 2
540,677
424,162
111,537
542,626
425,315
112,032
544,026
427,545
109,870
544,295
428,506
100,755
551,712
433,664
119,621
551,692
432,395
109,548
547,446
429,255
107,153
546,623
428,907
103,740
543,287
425,949
100,240
4 Time deposits in accounts of $100,000 or
more
Negotiable CDs
5
6
Other time deposits
147,881
107,404
40,477
150,077
109,046
41,030
152,991
111,327
41,664
158,511
115,608
42,903
159,440
116,374
43,066
158,366
114,836
43,530
158,214
114,303
43,912
160,217
115,893
44,324
162,382
117,670
44,712
2,657
1,742
915
2,668
1,768
900
2,712
1,767
945
2,736
1,791
946
2,748
1,800
947
2,773
1,862
911
2,778
1,865
913
2,753
1,833
920
2,760
1,850
910
10 Total loans (gross^ and securities adjusted 1
11 Total loans (gross) adjusted 1
12 Demand deposits adjusted 2
505,646
398,303
103,383
507,638
399,519
103,803
508,750
401,520
101,567
508,723
402,244
102,219
515,750
407,202
110,410
515,724
405,879
101,036
511,887
403,034
99,183
510,943
402,572
96,122
507,928
399,910
92,845
13 Time deposits in accounts of $100,000 or
more
Negotiable CDs
Other time deposits
139,268
101,224
38,043
141,426
102,866
38,559
144,234
105,092
39,143
149,499
109,197
40,302
150,394
109,936
40,458
149,315
108,428
40,888
149,236
107,974
41,262
151,266
109,622
41,645
153,475
111,453
42,022
2,614
1,719
895
2,630
1,746
884
2,669
1,744
925
2,693
1,768
925
2,711
1,783
928
2,733
1,839
893
2,738
1,838
900
2,708
1,801
907
2,725
1,825
900
122,000
99,756
25,982
122,706
100,451
25,697
123,839
101,563
24,568
123,437
101,258
26,261
126,976
104,883
28,081
125,329
103,338
24,909
123,896
102,208
24,838
123,052
101,360
26,244
121,183
99,522
24,972
35,549
26,655
8,894
35,632
26,657
8,975
36,529
27,457
9,072
37,720
28,583
9,137
37,701
28,649
9,052
38,263
29,154
9,109
38,033
28,877
9,156
38,579
29,294
9,285
38,826
29,595
9,232
7 Loans sold outright to affiliates 3
8
Commercial and industrial
9
Other
BANKS WITH ASSETS OF $1 BILLION OR MORE
14
15
16 Loans sold outright to affiliates 3
17 Commercial and industrial
18 Other
BANKS IN NEW YORK CITY
19 Total loans (gross) and securities adjusted 1 - 4
20 Total loans (gross) adjusted 1
21 Demand deposits adjusted 2
22 Time deposits in accounts of $100,000 or
more
23 Negotiable CDs
24
Other time deposits
1. Exclusive of loans and federal funds transactions with domestic commercial
banks.
2. All demand deposits except U.S. government and domestic banks less cash
items in process of collection.
3. Loans sold are those sold outright to a bank's own foreign branches, nonconsolidated nonbank affiliates of the bank, the bank's holding company (if not
a bank), and nonconsolidated nonbank subsidiaries of the holding company.
4. Excludes trading account securities.
A22
1.30
DomesticNonfinancialStatistics • February 1981
LARGE WEEKLY REPORTING COMMERCIAL BANKS
Domestic Classified Commercial and Industrial Loans
Millions of dollars
Outstanding
Net change during
Industry classification
1981
1 Durable goods manufacturing
2 Nondurable goods manufacturing
3
Food, liquor, and tobacco
4
Textiles, apparel, and leather
5
Petroleum refining
6
Chemicals and rubber
7
Other nondurable goods
...
8 Mining (including crude petroleum
and natural gas)
Adjustment
bank 1
1980
Q3'
Sept. 24
Oct. 29
23,512
23,335
24,088
24,675
24,378
783
1,163
754
587
-299
19,533
4,350
5,204
2,686
3,733
3,559
20,273
4,584
5,070
3,153
3,846
3,620
20,804
4,921
4,906
3,129
4,158
3,690
20,503
5,384
4,150
3,633
3,917
3,419
19,359
4,915
4,096
3,185
3,782
3,381
1,195
649
269
-28
30
275
970
1,033
-1,054
947
184
-140
530
337
-164
-24
312
70
-301
463
-756
504
-241
-271
-1,142
-466
-54
-448
-135
-39
Jan. 28p
04
Dec.
Jan.?
-1
-3
13,956
14,716
15,338
16,421
16,251
199
2,464
622
1,083
-170
24,950
27,050
2,402
12,058
11,368
350
588
-94
-144
1,298
444
717
136
781
-69
306
544
-803
161
122
-704
-447
-244
12,467
26,247
2,563
12,303
11,381
25,543
11,586
11,245
26,270
2,470
11,876
11,923
13 Transportation, communication,
and other public utilities
14
Transportation
15
Communication
16
Other public utilities
19,223
7,735
2,993
8,495
19,316
7,788
3,094
8,434
20,099
8,019
3,161
8,919
21,316
8,374
3,319
9,623
20,747
8,260
3,184
9,303
478
136
154
188
2.093
638
326
1,128
783
231
67
484
1,217
354
158
704
17 Construction
18 Services
19 All other 2
6,030
21,311
15,402
5,924
21,530
15,634
5,992
22,160
16,146
5,993
22,853
16,692
5,950
23,250
15,883
60
1,014
403
-37
1,542
1,290
69
630
511
693
546
-42
397
-1,150
' 34l"
143,917
146,998
151,678
154,701
151,362
4,483
10,784
4,679
3,024
-3,678
339
76,536
76,912
78,956
81,736
81,779
2,241
5,200
2,044
2,780
9 Trade
10
Commodity dealers
11
Other wholesale
12
Retail
20 Total domestic loans
21 MEMO: Term loans (original maturity
more than 1 year) included in domestic loans
2,118
12,182
1. Adjustment bank amounts represent accumulated adjustments originally
made to offset the cumulative effects of mergers. These adjustment amounts should
be added to outstanding data for any date in the year to establish comparability
with any date in the subsequent year. Changes shown have been adjusted for these
amounts.
2. Includes commercial and industrial loans at a few banks with assets of $1
billion or more that do not classify their loans.
2,116
-1,0;
1
-12
-567
- 2
-112
- 2
-136
-320
- 2
NOTE. New series. The 134 large weekly reporting commercial banks with domestic assets of $1 billion or more as of December 31, 1977, are included in this
series. The revised series is on a last-Wednesday-of-the-month basis. Partly estimated historical data are available from the Banking Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C., 20551.
Deposits and Commercial Paper
1.31
A23
GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations)
Billions of dollars, estimated daily-average balances
Commercial banks
Type of holder
19792
1975
Dec.
1976
Dec.
1977
Dec.
1980
1978
Dec.
Sept.
Dec.
Mar.
June
Sept.
Dec.
1 All holders—Individuals, partnerships, and
corporations
236.9
250.1
274.4
294.6
292.4
302.2
288.4
288.6
302.0
316.8
2
3
4
5
6
20.1
125.1
78.0
2.4
11.3
22.3
130.2
82.6
2.7
12.4
25.0
142.9
91.0
2.5
12.9
27.8
152.7
97.4
2.7
14.1
26.7
148.8
99.2
2.8
14.9
27.1
157.7
99.2
3.1
15.1
28.4
144.9
97.6
3.1
14.4
27.7
145.3
97.9
3.3
14.4
29.6
151.9
101.8
3.2
15.5
29.8
162.3
104.0
3.3
17.4
Financial business
Nonfinancial business
Consumer
Foreign
Other
Weekly reporting banks
19793
1975
Dec.
1977
Dec.
1976
Dec.
Sept.
7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
Dec.
Mar.
June
Sept.
Dec.
124.4
128.5
139.1
147.0
132.7
139.3
133.6
133.9
140.6
147.4
15.6
69.9
29.9
2.3
6.6
17.5
69.7
31.7
2.6
7.1
18.5
76.3
34.6
2.4
7.4
19.8
79.0
38.2
2.5
7.5
19.7
69.1
33.7
2.8
7.4
20.1
74.1
34.3
3.0
7.8
20.1
69.1
34.2
3.0
7.2
20.2
69.2
33.9
3.1
7.5
21.2
72.4
36.0
3.1
7.9
21.6
77.7
36.3
3.1
8.7
3. After the end of 1978 the large weekly reporting bank panel was changed to
170 large commercial banks, each of which had total assets in domestic offices
exceeding $750 million as of Dec. 31, 1977. See "Announcements," p. 408 in the
May 1978 BULLETIN. Beginning in March 1979, demand deposit ownership estimates for these large banks are constructed quarterly on the basis of 97 sample
banks and are not comparable with earlier data. The following estimates in billions
of dollars for December 1978 have been constructed for the new large-bank panel;
financial business, 18.2; nonfinancial business, 67.2; consumer, 32.8; foreign, 2.5;
other, 6.8.
1. Figures include cash items in process of collection. Estimates of gross deposits
are based on reports supplied by a sample of commercial banks. Types of depositors
in each category are described in the June 1971 BULLETIN, p. 466.
2. Beginning with the March 1979 survey, the demand deposit ownership survey
sample was reduced to 232 banks from 349 banks, and the estimation procedure
was modified slightly. To aid in comparing estimates based on the old and new
reporting sample, the following estimates in billions of dollars for December 1978
have been constructed using the new smaller sample; financial business, 27.0;
nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and other, 15.1.
1.32
1980
1978
Dec.
COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1980
Instrument
1977
Dec.
19791
Dec.
1978
Dec.
1980
Dec.
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Commercial paper (seasonally adjusted)
1 All issuers
2
3
4
5
6
Financial companies 2
Dealer-placed paper3
Total
Bank-related
Directly placed paper4
Total
Bank-related
Nonfinancial companies 5
65.036
83,420
112,803
125,068
123,937
122,259
122,607
123,460
122,383
124,776
125,068
8,888
2,132
12,300
3,521
17,579
2,874
19,847
3,561
19,100
3,188
18,207
3,198
19,092
3,313
19,509
3,370
18,992
3,442
19,556
3,436
19,847
3.561
40,612
7,102
15,536
51,755
12,314
19,365
64,931
17.598
30,293
68,083
22,382
37,138
62,623
19,436
42,214
63,777
19,239
40,275
64,550
19,909
38,965
65,542
19,692
38,409
66,628
21,146
36,763
67,345
21,939
37,875
68,083
22,382
37,138
Bankers dollar acceptances (not seasonally adjusted)
7 Total
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents .
Others
Basis
14. Imports into United States
15 Exports from United States
16 Allother
8
9
10
11
12
13
25,450
33,700
45,321
54,744
54,356
54,334
54,486
55,774
56,610
55,226
10,434
8,915
1,519
8,579
7,653
927
9,865
8,327
1,538
10,564
8,963
1,601
10,051
9,113
939
9,764
8,603
1,161
9,644
8,544
1,100
10,275
9,004
1,270
11,317
9,808
1,509
10,236
8,837
1,399
954
362
13,700
664
24,456
704
1,382
33,370
776
1,791
41,614
373
1,784
42,147
310
1,899
42,361
277
1,841
42,724
499
1,820
43,179
566
1,915
42,813
523
1,852
42,616
6,378
5,863
13,209
8,574
7,586
17,540
10,270
9,640
25,411
11,776
12,712
30,257
11,536
11,339
31,480
12,109
12,401
29,824
11,861
12,582
30,043
11,731
12,991
31,052
12,254
13,445
30,911
11,774
13,670
29,782
1
1. A change in reporting instructions results in offsetting shifts in the dealerplaced and directly placed financial company paper in October 1979.
2. Institutions engaged primarily in activities such as, but not limited to, commercial, savings, and mortgage banking; sales, personal, and mortgage financing;
factoring, finance leasing, ana other business lending; insurance underwriting; and
FRASER
other investment activities.
Digitized for
3. Includes all financial company paper sold by dealers in the open market.
4. As reported by financial companies that place their paper directly with investors.
5. Includes public utilities and firms engaged primarily in such activities as communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and reserves.
A24
1.33
DomesticNonfinancialStatistics • February 1981
PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per annum
Effective date
1980—Sept 19
26
Oct. 1
12.50
13.00
13.50
14.00
14.50
15.50
16.25
17.00
17.75
17
29
Nov.
6
17
21
26
1980—Dec
10
16
20.00
21.00
19
21.50
2
20.50
9
20.00
1981—Jan.
1980—Jan.
Feb.
Mar.
Apr.
May
June
July
18.50
19.00
2
5
Average
rate
Month
Rate
Effective Date
Rate
15.25
15.63
18.31
19.77
16.57
12.63
11.48
Month
1980—Aug
Sept
Oct
Nov
Dec
1981—Jan
1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 3-8, 1980
Size of loan (in thousands of dollars)
Item
All
sizes
1,000
1-24
50-99
25-49
100-499
500-999
and over
SHORT-TERM COMMERCIAL AND
INDUSTRIAL LOANS
1
2
3
4
5
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per annum) .
Interquartile range 1
13,100,722
131,579
2.2
15.71
15.12-16.65
729,247
92,779
3.0
15.97
14.75-17.23
549,089
16,539
3.5
15.72
13.52-17.11
562,389
9,235
2.9
16.39
15.50-17.50
1,819,646
10,024
3.0
15.52
14.50-16.75
665,483
1,049
3.4
15.87
15.31-16.61
8,774,868
1,953
1.7
15.68
15.25-16.50
50.5
45.7
25.2
25.0
25.1
14.9
27.9
22.3
12.0
40.7
35.3
17.4
52.1
46.4
24.3
68.3
65.6
31.0
53.0
48.0
27.1
Percentage of amount of loans
6 With floating rate
7 Made under commitment
8 With no stated maturity
LONG-TERM COMMERCIAL AND
INDUSTRIAL LOANS
9
10
11
12
13
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per annum) .
Interquartile range 1
3,152,110
17,989
46.3
15.07
14.50-15.62
306,233
15,060
48.3
15.42
14.93-16.65
571,615
2,245
34.4
15.29
14.75-15.50
171,411
245
40.6
15.20
14.50-16.25
2,102,851
439
49.6
14.95
14.50-15.50
70.1
58.1
39.3
29.0
29.5
25.1
72.3
70.2
85.5
70.3
Percentage of amount of loans
14 With floating rate
15 Made under commitment
CONSTRUCTION AND
LAND DEVELOPMENT LOANS
16
17
18
19
20
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per annum) .
Interquartile range 1
21
22
23
24
Percentage of amount of loans
With floating rate
Secured by real estate
Made under commitment
With no stated maturity
1,072,203
24,383
13.4
15.31
14.00-16.65
105,341
13,527
9.4
15.23
14.04-16.99
242,030
6,586
5.0
14.64
13.10-15.50
167,557
2,637
19.4
14.74
14.00-14.75
230,726
1,413
10.0
15.24
14.00-17.00
326,549
221
18.0
16.16
15.50-17.00
44.4
81.9
60.9
16.5
22.7
84.3
48.7
4.9
8.8
98.2
60.9
26.9
45.6
96.7
21.5
3.1
47.9
89.8
78.2
35.8
74.7
56.0
73.0
5.8
40.9
8.2
50.9
75.0
2.2
22.7
66.9
10.0
23.1
57.7
3.6
38.7
24.9
8.9
66.2
13.3
10.7
76.0
Type of construction
25 1- to 4-family
26 Multifamily
27 Nonresidential
All
sizes
250
10-24
1-9
25-49
50-99
100-249
and over
LOANS TO FARMERS
28
29
30
31
32
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per annum) .
Interquartile range 1
33
34
35
36
37
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
1,301,641
72,123
7.3
15.46
14.49-16.64
191,079
46,721
6.7
15.10
14.30-15.97
217,452
14,605
7.1
15.02
14.32-15.95
190,952
5,800
5.6
15.22
14.04-16.21
196,075
2,838
6.6
15.55
15.00-16.10
275,324
1,789
10.6
15.74
14.48-16.64
230,759
370
5.8
15.96
14.93-17.05
15.45
15.35
15.44
15.13
15.75
15.10
15.19
15.17
15.01
14.91
15.09
15.96
15.14
14.81
13.90
14.93
14.84
15.33
15.44
16.06
15.23
15.46
15.88
15.42
15.79
15.79
15.30
15.97
(2)
15.44
16.32
(2)
15.21
(2)
17.25
1. Interest rate range that covers the middle 50 percent of the total dollar amount
of loans made.
2. Fewer than 10 sample loans.
NOTE. For more detail, see the Board's E.2(416) statistical release,
Securities Markets
1.35
A25
I N T E R E S T R A T E S M o n e y and Capital Markets
Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.
1980
T
..
1981, week ending
1981
.
Oct.
Nov.
Dec.
Jan.
Jan. 2
Jan. 9
Jan. 16
Jan. 23
Jan. 30
Money market rates
1 Federal funds 1
Commercial paper 2 - 3
1-month
3-month
6-month
Finance paper, directly placed2-3
5
1-month
6 3-month
7 6-month
8 Bankers acceptances, 3-month 3 - 4
Certificates of deposit, secondary market 5
9
1-month
10 3-month
11 6-month
12 Eurodollar deposits, 3-month 6
U.S. Treasury bills3-7
Secondary market
3-month
13
14
6-month
1-year
15
Auction average 8
3-month
16
17
6-month
1-year
18
2
3
4
7.93
11.19
13.36
12.81
15.85
18.90
19.08
18.45
20.06
19.64
19.35
18.12
7.76
7.94
7.99
10.86
10.97
10.91
12.76
12.66
12.29
12.59
12.52
12.32
15.23
15.18
14.73
18.95
18.07
16.49
17.73
16.58
15.10
17.89
16.34
15.05
17.45
15.87
14.66
18.23
16.95
15.35
18.16
17.23
15.40
17.07
16.38
15.02
7.73
7.80
7.78
8.11
10.78
10.47
10.25
11.04
12.44
11.49
11.28
12.78
12.32
11.24
11.15
12.69
14.87
13.14
13.07
15.34
17.87
15.00
14.78
17.96
16.97
14.49
14.09
16.62
16.66
14.63
14.53
16.21'
16.70
14.03
13.81
15.96
17.11
14.33
13.94
17.01
17.43
14.80
14.31
17.30
16.71
14.80
14.24
16.32
7.88
8.22
8.61
8.78'
11.03
11.22
11.44
11.96
12.91
13.07
12.99
14.00
12.69
12.94
12.99
13.55
15.39
15.68
15.36
16.46
19.24
18.65
17.10
19.47
17.99
17.19
15.92
18.07
17.87
16.99
15.76
17.79
17.67
16.55
15.50
17.06
18.44
17.42
15.92
18.06
18.54
17.82
16.34
18.60
17.43
17.03
15.92
18.56
7.19
7.58
7.74
10.07
10.06
9.75
11.43
11.37
10.89
11.62
11.63
11.30
13.73
13.50
12.66
15.49
14.64
13.23
15.02
14.08
12.62
14.31
13.73
12.38
14.31
13.69
12.26
15.19
14.06
12.50
15.65
14.59
13.03
15.01
14.01
12.68
7.221
7.572
7.678
10.041
10.017
9.817
11.506
11.374
10.748
11.580
11.566
11.136
13.888
13.612
12.219
15.661
14.770
13,261
14.724
13.883
12.554
13.908
13.411
12.074
13.601
13.182
15.318
14.228
15.595
14.471
15.199
14.121
13.033
13.68
12.85
14.52
13.69
12.72
12.53
12.40
12.31
11.98
11.85
13.91
13.15
13.10
12.91
12.69
12.62
12.53
12.27
12.12
13.32
13.01
12.85
12.72
12.48
12.31
14.24
13.39
13.25
13.13
12.89
12.78
12.74
12.48
12.32
Capital market rates
U . S . TREASURY NOTES AND BONDS
19
20
21
22
23
24
25
26
27
Constant maturities 9
1-year
2-year
2V^-year10
3-year
5-year
7-year
10-year
20-year
30-year
28
Composite 11
Over 10 years (long-term)
8.34
8.34
10.67
10.12
12.05
11.77
12.49
12.09
14.15
13.51
14.88
14.08
14.08
13.26
8.29
8.32
8.36
8.41
8.48
8.49
9.71
9.52
9.48
9.44
9.33
9.29
11.55
11.48
11.43
11.46
11.39
11.30
12.01
11.86
11.79
11.75
11.75
11.59
13.31
12.83
12.71
12.68
12.44
12.37
13.65
13.25
13.00
12.84
12.49
12.40
13.01
12.77
12.66
12.57
12.29
12.14
13.86
13.00
12.75
12.81
12.54
12.43
12.36
12.05
11.95
7.89
8.74
10.81
11.20
11.83
11.89
11.65
11.49
11.39
11.62
11.79
11.80
5.52
6.27
6.03
5.92
6.73
6.52
7.85
9.01
8.59
8.38
9.41
9.11
8.71
9.74
9.56
9.44
10.64
10.11
8.98
9.90
9.66
9.00
10.20
9.76
8.80
9.90
9.49
8.80
9.90
9.57
9.00
9.90
9.68
9.30
9.90
9.91
9.07
10.12
12.75
13.07
13.64
14.04
13.80
13.82
13.65
13.74
13.88
13.93
8.73
8.92
9.12
9.45
9.63
9.94
10.20
10.69
11.94
12.50
12.89
13.67
12.31
12.68
13.05
14.23
12.97
13.34
13.59
14.64
13.21
13.78
14.03
15.14
12.81
13.52
13.83
15.03
12.83
13.54
13.82
15.09
12.59
13.34
13.72
14.93
12.76
13.51
13.72
14.96
12.91
13.60
13.90
15.08
12.98
13.62
13.97
15.15
8.96
8.97
10.03
10.02
12.74
12.70
13.18
13.13
13.85
13.91
14.51
14.38
14.12
14.17
14.15
14.05
14.10
14.07
14.17
14.29
14.33
14.06
14.08
8.25
5.28
9.07
5.46
10.57
5.25
10.64
4.80
11.35
4.63
11.94
4.74
11.64?
4.76
12.09
4.67
11.55
4.70
11.47
4.76
11.53
4.83
11.54
4.84
STATE AND LOCAL NOTES AND BONDS
Moody's series12
29
30 Baa
31 Bond Buyer series 13
CORPORATE BONDS
32 Seasoned issues, all industries 14
By rating group
33 Aaa
34
Aa
35 A
36
Baa
Aaa utility bonds 15
....
37 New issue
Recently offered issues
38
39
40
MEMO: Dividend/price ratio 16
Preferred stocks
Common stocks
...
1. Weekly figures are seven-day averages of daily effective rates for the week
ending Wednesday; the daily effective rate is an average of the rates on a given
day weighted by the volume of transactions at these rates.
2. Beginning November 1977, 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). Previously, most representative rate quoted by those
dealers and finance companies. 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.
3. Yields are quoted on a bank-discount basis.
4. Dealer closing offered rates for domestic issues (top-rated banks).
5. Five-day average of rates quoted by five dealers.
6. Averages of daily quotations for the week ending Wednesday.
7. Except for auction averages, yields are computed from daily closing bid prices.
8. Rates are recorded in the week in which bills are issued.
9. Yield on the more actively traded issues adjusted to constant maturities by
the U.S. Treasury, based on daily closing bid prices.
10. Each monthly figure is an average of only five business days near the end
of the month. The rate for each month was used to determine the maximum interest
rate payable in the following month on small saver certificates, until June 2, 1980.
Each weekly figure is calculated on a biweekly basis and is the average of five
business days ending on the Monday following the calendar week. Beginning June
2, the biweekly rate is used to determine the maximum interest rate payable in the
following two-week period on small saver certificates. (See table 1.16.)
11. Unweighted averages for all outstanding notes and bonds neither due nor
callable in less than 10 years, including several very low yielding "flower" bonds.
Based on daily closing bid prices.
12. General obligations only, based on figures for Thursday, from Moody's
Investors Service.
13. Twenty issues of mixed quality.
14. Averages of daily figures from Moody's Investors Service.
15. Compilation of tne Federal Reserve. Issues included are long-term (20 years
or more). New-issue yields are based on quotations on date of offering; those on
recently offered issues (included only for first 4 weeks after termination of underwriter price restrictions), on Friday close-of-business quotations.
16. 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.
A26
1.36
DomesticNonfinancialStatistics • February 1981
STOCK MARKET
Selected Statistics
1980
Indicator
1979
1978
1981
1980
July
Aug.
Oct.
Sept.
Nov.
Dec.
Jan.
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 .
7 American Stock Exchange (Aug. 31, 1973 = 100)
53.76
58.30
43.25
39.23
56.74
96.11
144.56
55.67
61.82
45.20
36.46
58.65
98.34
186.56
68.06
78.64
60.52
37.35
64.28
118.71
300.94
68.56
78.67
59.14
38.77
66.76
119.83
310.29
70.87
82.15
62.48
38.18
67.22
123.50
321.87
73.12
84.92
65.89
38.77
69.33
126.49
337.01
75.17
88.00
70.76
38.44
68.29
130.22
350.08
78.15
92.32
77.22
38.35
67.21
135.65
349.97
76.69
90.37
75.74
37.84
67.46
133.48
347.56
76.24
89.23
74.43
38.53
70.04
132.97
344.21
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
28,591
3,622
32,233
4,182
44,867
6,377
46,444
6,195
45,984
6,452
50,397
7,880
44,860
7,087
54,895
7,852
46,620
6,410
45,500
6,024
Customer financing (end-of-period balances, in millions of dollars)
10 Regulated margin credit at brokers/dealers 2
11,035
11,619
14,271
11,522
12,007
12,731
13,293
14,363
14,721
11 Margin stock3
12 Convertible bonds
13 Subscription issues
10,830
205
1
11,450
167
2
14,500
219
2
11,320
198
4
11,800
204
3
12,520
208
3
13,080
211
2
14,140
220
3
14,500
219
2
835
2,510
1,105
4,060
2,120
5,590
1,665
4.905
1,695
4,925
1,850
5,680
1,950'
5,500'
2,120'
5,590'
2,105
5,970
Free credit balances at brokers4
14 Margin-account
15 Cash-account
n. a.
Margin-account debt at brokers (percentage distribution, end of period)
16 Total
17
18
19
20
21
22
By equity class (in percent)5
Under 40
40-49
50-59
60-69
70-79
80 or more
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
33.0
28.0
18.0
10.0
6.0
5.0
16.0
29.0
27.0
14.0
8.0
7.0
14.0
30.0
25.0
14.0
9.0
8.0
12.0
27.0
28.0
16.0
9.0
8.0
11.0
25.0
30.0
16.0
10.0
8.0
13.0
28.0
26.0
15.0
10.0
8.0
13.0
29.0
25.0
15.0
10.0
8.0
13.0
18.0
31.0
18.0
14.0
30.0
25.0
14.0
9.0
8.0
11.0
9.0
n .a.
1
IT
Special miscellaneous-account balances at brokers (end of period)
23 Total balances (millions of dollars)6 .
Distribution by equity status (percent)
24 Net credit status
Debt status, equity of
25 60 percent or more
26 Less than 60 percent
13,092
16,150
21,690
17,886
41.3
44.2
47.8
48.7
45.1
13.6
47.0
8.8
44.4
7.7
43.8
8.0
18,350
19,283
19,929
21,600
21,690
48.2
49.0
46.8
46.5
47.8
44.6
7.0
43.4
7.6
46.2
7.0
46.8
6.7
44.4
7.7
Margin requirements (percent of market value and effective date) 7
27 Margin stocks
28 Convertible bonds
29 Short sales
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Margin credit includes all credit extended to purchase or carry stocks or related
equity instruments and secured at least in part by stock. Credit extended is end-ofmonth data for member firms of the New York Stock Exchange.
In addition to assigning a current loan value to margin stock generally. Regulations T and U permit special loan values for convertible bonds and stock acquired
through exercise of subscription rights.
3. A distribution of this total by equity class is shown on lines 17-22.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
Jan. 3, 1974
50
50
50
5. Each customer's equity in his collateral (market value of collateral less net
debit balance) is expressed as a percentage of current collateral values.
6. Balances that may be used by customers as the margin deposit required for
additional purchases. Balances may arise as transfers based on loan values of other
collateral in the customer's margin account or deposits of cash (usually sales proceeds) occur.
7. Regulations G, T, and U of the Federal Reserve Board of Governors, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount
of credit to purchase and carry margin stocks that may be extended on securities
as collateral by prescribing a maximum loan value, which is a specified percentage
of the market value of the collateral at the time the credit is extended. Margin
requirements are the difference between the market value (100 percent) and the
maximum loan value. The term "margin stocks" is defined in the corresponding
regulation.
Thrift Institutions
1.37
SAVINGS INSTITUTIONS
All
Selected Assets and Liabilities
Millions of dollars, end of period
1980
Account
1978
1979
Mar.
Apr.
June
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
Savings and loan associations
1 Assets
523,542
596,620 603,295
609,320
617,773
623,939
2 Mortgages
3 Cash and investment securities1
4 Other
432,808 475,688 478,952 480,032 479,956 481,042 482,839 487,036
53,336
50,373 52,466
52,408 52,165
44,884
46,341 50,702
56,933 59,466 60,320 60,509 60,947 61,616 62,923
45,850
491,895
53,435
63,990
496,495
56,146
65,132
499,973 502,718
57,302
57,562
66,664
69,396
S Liabilities and net worth
523,542
603,295
609,320
617,773
623,939
430,953 470,004 478,075 478,400 481,411 486,680 488,896 497,403
55,396
57,253 55,199
54,796 41,239
55,232
57,193
42,907
41,005
40,441 42,413 42,724 41,529 40,613 39,882
31,990
14,391
14,529
13,670
14,780
14,183
13,579
14,791
10,917
7,540
7,185
7,112
8,149
7,725
7,031
10,721
9,582
16,141
14,364
16,190
14,143
12,966
9,904
12,566
11,506
496,991
58,418
42,547
15,871
8,243
12,776
500,861
60,727
44,325
16,402
8,654
14,502
503,365 511,024
62,067
64,464
45,505
47,074
16,562
17,390
8,853
8,732
16,433
12,131
6
7
8
9
10
11
Savings capital
Borrowed money
FHLBB
Other
Loans in process
Other
578,962
589,120 590,725 592,931 594,397
578,962 589,120 590,725 592,931
594,397 596,620
629,676
629,676
12 Net worth 2
29,057
32,638
33,137
33,204
32,995
32,924
32,787
32,766
32,892
33,029
33,221
33,325
13 MEMO: Mortgage loan commitments outstanding 3
18,911
16,007
15,843
14,195
13,931
15,368
18,020
20,278
20,311
19,077
17,979
16,184
Mutual savings banks 4
14 Assets
15
16
17
18
19
20
21
Loans
Mortgage
Other
Securities
U.S. government 5
State and local government
Corporate and other 6
Cash
Other assets
22 Liabilities
23
24
25
26
27
28
29
30
Deposits
Regular 7
Ordinary savings
Time and other
Other
Other liabilities
General reserve accounts
MEMO: Mortgage loan commitments outstanding 8
158,174
163,405
165,107
165,366
166,340
166,982
167,959
168,752
169,409
170,432
171,126
95,157
7,195
98,908
9,253
99,151
10,131
99,045
10,187
99,163
10,543
99,176
11,148
99,301
11,390
99,289
11,122
99,306
11,415
99,523
11,382
99,677
11,477
4,959
3,333
39,732
3,665
4,131
7,658
2,930
37,086
3,156
4,412
7,629
2,824
37,493
3,361
4,518
7,548
2,791
37,801
3,405
4,588
7,527
2,727
38,246
3,588
4,547
7,483
2,706
38,276
3,561
4,631
7,796
2,702
38,863
3,260
4,648
8,079
2,709
39,327
3,456
4,770
8,434
2,728
39,609
3,153
4,764
8,622
2,754
39,720
3,592
4,839
8,715
2,736
39,888
3,717
4,916
158,174
163,405
165,107
165,366
166,340
166,982
167,959
168,752
169,409
170,432
171,126
142,701
141,170
71,816
69,354
1,531
4,565
10,907
146,006
144,070
61,123
82,947
1,936
5,873
11,525
146,328
144,214
56,948
87,266
2,115
7,135
11,643
145,821
143,765
54,247
89,517
2,056
7,916
11,629
146,637
144,646
54,669
89,977
1,990
8,161
11,542
148,606
146,416
56,388
90,028
2,190
6,898
11,478
149,580
147,408
57,737
89,671
2,172
6,964
11,416
150,187
148,018
58,191
89,827
2,169
7,211
11,353
151,765
149,395
58,658
90,736
2,370
6,299
11,344
151,998
149,797
57,651
92,146
2,200
7,117
11,317
152,133
150,109
56,256
93,853
2,024
7,644
11,349
4,400
3,182
2,397
2,097
1,883
1,898
1,939
1,849
1,883
1,817
1,682
459,362
464,483
468,057
473,529
20,470 20,529
20,545
20,395
20,736
20,833
20,009
0,338
5,059
5,004
5,107
4,990
4,822
5,325
5,386
4,888
6,352
6,349
6,421
6,351
6,402
6,454
6,428
6,361
9,060
9,070
9,087
9,056
8,785
9,022
9,050
9,026
198,105 222,332 221,214 222,175 223,556 224,874 228,645 230,477
162,587 178,371 182,536 182,750 183,356 184,329 186,385 187,839
39,757
38,678 39,425 40,200 40,545 42,260 42,638
35,518
106,167 118,421 122,314 123,587 124,563 125,455 126,461 127,357
13,696
14,164
11,764
13,007
13,512
13,981
14,085
14,184
38,890 39,354 39,649
36,901 38,166
30,146
34,825
39,925
23,733 27,563 25,247 24,838 25,501 26,695 26,104 26,586
20,853
5,361
6,474
9,018
233,652
189,586
44,066
128,089
14,460
40,258
27,171
20,942
5,390
6,484
9,068
236,115
191,229
44,886
128,977
14,702
40,548
26,765
21,204
5,568
6,568
9,068
239,150
191,753
47,397
129,878
15,183
40,878
27,236
n.a.
Life insurance companies
31 Assets
32
33
34
35
36
37
38
39
40
41
42
Securities
Government
United States 9
State and local
Foreign 10
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
389,924 432,282
439,733 442,932
447,020 450,858 455,759
n.a.
Credit unions
43 Total assets/liabilities and
capital
62,348
65,854
65,678
65,190
66,103
68,102
68,429
69,553
70,515
70,702
71,335
71,709
44
45
46
47
48
49
50
51
34,760
27,588
50,269
27,687
22,582
53,517
29,802
23,715
35,934
29,920
53,125
28,698
24,426
56,232
35,530
25,702
36,091
29,587
51,337
27,685
23,652
56,743
30,948
25,795
35,834
29,356
50,344
27,119
23,225
56,338
30,851
25,487
36,341
29,762
49,469
26,550
22,919
57,197
31,403
25,794
37,555
30,547
48,172
25,773
22,399
59,310
32,764
26,546
37,573
30,856
47,829
25,435
22,394
60,574
33,472
27,102
38,168
31,385
47,884
25,401
22,483
61,403
33,964
27,439
39,219
31,296
47,211
25,381
21,830
63,728
35,961
27,767
39,155
31,547
47,221
25,288
21,933
63,957
36,030
27,927
39,428
31,907
47,299
25,273
22,026
64,304
36,183
28,121
39,801
31,908
47,774
25,627
22,147
64,399
36,348
28,051
Federal
State
Loans outstanding
Federal
State
Savings
Federal (shares)
State (shares and deposits)
For notes see bottom of page A28.
A28
1.38
DomesticNonfinancialStatistics • February 1981
FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
Fiscal
year
1978
Fiscal
year
1979
Fiscal
year
1980
1979
H2
U.S. budget
1 Receipts 1
2 Outlays 12
3 Surplus, or deficit( - )
4
Trust funds
Federal funds 3
5
1980
1980
HI
H2
Oct.
Nov.
Dec.
401,997
450,804'
-48,807'
12,693
-61,532
465,940
493,635'
-27,694'
18,335
-46,069
520,050
579,613'
-59,563'
8,791
-67,752
233,952
263,004'
-29,052'
9,679
-38,773
270,864
289,905'
-19,041'
4,383
-23,418
262,152
310,972
-48,821
-2,551
-46,306
38,923
56,304
-17,382
-7,452
-9,929
39,175
48,049
-8,874
-3,049
-5,825
48,903
56,202
-7,299
5,661
-12,960
-10,661
302'
-13,261
793r
-14,549
303'
-5,909
765'
-7,735
-522'
-7,552
376
-1,157
1,403
-1,358
-466
-1,033
463
-59,166
-40,162
-73,808'
59,106
33,641
-3,023
3,083
-408
6,929
22,444
16,647
5,797
24,176
6,489
17,687
Off-budget entities (surplus, or deficit
6 Federal Financing Bank outlays
7 Other 4
U.S. budget plus off-budget, including
Federal Financing Bank
8 Surplus, or deficit ( - )
Source or financing
Borrowing from the public
9
10 Cash and monetary assets (decrease, or
increase ( - ) ) '
11 Other 6
70,515
-355
3,648'
-34,197
-27,298
-55,998
-17,136
-10,698
-7,869
31,320
24,435
54,764
4,758
9,231
13,667
3,059
-182
-3,482
6,345
-6,730
7,964
8,488
3,890
4,077
-2,610
-10,485
4,686
15,924
4,075
11,849
14,092
3,199
10,893
12,305
3,062
9,243
12,678
1,864
10,814
7,226
2,435
4,791
12,305
3,062
9,243
MEMO:
12 Treasury operating balance (level, end of
period)
13 Federal Reserve Banks
14 Tax and loan accounts
20,990
4,102
16,888
1. Effective June 1978, earned income credit payments in excess of an individual's tax liability, formerly treated as income tax refunds, are classified as outlays
retroactive to January 1976.
2. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was reclassified from an off-budget agency to an on-budget agency in the Department of
Labor.
3. Half-year figures are calculated as a residual (total surplus/deficit less trust
fund surplus/deficit).
4. Includes Postal Service Fund; Rural Electrification and Telephone Revolving
Fund; and Rural Telephone Bank.
5. Includes U.S. Treasury operating cash accounts; special drawing rights; gold
tranche drawing rights; loans to International Monetary Fund; and other cash and
monetary assets.
6. Includes accrued interest payable to the public; allocations of special drawing
rights; deposit funds; miscellaneous liability (including checks outstanding) and
asset accounts; seignorage; 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," Treasury Bulletin, and the Budget of the United States Government,
Fiscal Year 1981.
NOTES TO TABLE 1.37
1. Holdings of stock of the Federal Home Loan Banks are included in "other
assets."
2. Includes net undistributed income, which is accrued by most, but not all,
associations.
3. Excludes figures for loans in process, which are shown as a liability.
4. The NAMSB reports that, effective April 1979, balance sheet data are not
strictly comparable with previous months. Beginning April 1979, data are reported
on a net-of-valuation-reserves basis. Prior to that date, data were reported on a
gross-of-valuation-reserves basis.
5. Beginning April 1979, includes obligations of U.S. government agencies.
Before that date, this item was included in "Corporate and other."
6. Includes securities of foreign governments and international organizations
and, prior to April 1979, nonguaranteed issues of U.S. government agencies.
7. Excludes checking, club, and school accounts.
8. Commitments outstanding (including loans in process) of banks in New York
State as reported to the Savings Banks Association of the state of New York.
9. Direct and guaranteed obligations. Excludes federal agency issues not guaranteed, which are shown in the table under "Business" securities.
10. Issues of foreign governments and their subdivisions and bonds of the International Bank for Reconstruction and Development.
NOTE. Savings and loan associations: Estimates by the FHLBB for all associations
in the United States. Data are based on monthly reports of federally insured
associations and annual reports of other associations. Even when revised, data for
current and preceding year are subject to further revision.
Mutual savings banks: Estimates of National Association of Mutual Savings
Banks for all savings banks in the United States.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for differences between market and book values are not made on each item separately but
are included, in total, in "other assets."
Credit unions: Estimates by the National Credit Union Administration for a
group of federal and state-chartered credit unions that account for about 30 percent
of credit union assets. Figures are preliminary and revised annually to incorporate
recent benchmark data.
Federal Finance
1.39
A29
U.S. BUDGET RECEIPTS AND OUTLAYS
Millions of dollars
Calendar year
Source or type
Fiscal
year
1978
Fiscal
year
1979
Fiscal
year
1980'
H2
1980
1980
1979
HI
H2
Oct.
Nov.
Dec.
RECEIPTS
401,997
465,940
520,050
233,952
270,864
262,152
38,923
39,175
48,903
180,988
165,215
39
47,804
32,070
217,841
195,295
36
56,215
33,705
244,069
223,763
39
63,746
43,479
115,488
105,764
3
12,355
2,634
119,988
110,394
34
49,707
40,147
131,962
120,924
4
14,592
3,559
21,150
20,237
0
1,454
540
20,851
20,379
0
673
201
23,725
22,844
0
1,150
269
65,380
5,428
71,448
5,771
72,380
7,790
29,169
3,306
43,434
4,064
28,579
4,518
2,598
1,314
1,774
771
10,155
768
123,410
141,591
160,747
71,031
86,597
77,262
11,283
13,242
11,078
99,626
115,041
133,042
60,562
69,077
66,831
9,645
11,189
10,268
4,267
13,850
5,668
5,034
15,387
6,130
5,723
15,336
6,646
417
6,899
3,149
5,535
8,690
3,294
188
6,742
3,502
0
1,068
570
0
1,499
554
0
224
586
18,376
6,573
5,285
7,413
18,745
7,439
5,411
9,237
24,329
7,174
6,389
12,741
9,675
3,741
2,900
5,254
11,383
3,443
3,091
6,993
15,332
3,717
3,499
6,318
2,778
654
610
1,163
2,080
546
543
909
2,391
632
517
1,174
18 AH types 16
450,804r
493,635r
579,613
263,004r
289,905'
310,972
56,304
48,049
56,202
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology ..
Energy
Natural resources and environment
Agriculture
105,186
5,922
4,742
5,861
10,925
7,731
117,681
6,091
5,041
6,856
12,091
6,238
135,856
10,733
5,722
6,313
13,812
4,762
62,002
4,617
3,299
3,281
7,350
1,709
69,132
4,602
3,150
3,126
6,668
3,193
72,457
5,430
3,205
3,997
7,722
1,892
13,040
984
588
631
1,406
221
11,812
674
549
627
1,086
878
12,605
1,249
618
845
1,325
1,355
Commerce and housing credit
Transportation
Community and regional development . . .
Education, training, employment, social
services
29 Health
30 Income security1-6
3,324
15,445
11,039
2,565
17,459
9,482
7,782
21,120
10,068
3,002
10,298
4,855
3,878
9,582
5,302
3,163
11,547
5,370
1,626
2,066
989
-357
1,808
847
1,051
1,870
872
26,463
43,676
146,180'"
29,685
49,614
160,159'
30,767
58,165
193,100
14,579
26,492
85,967r
16,686
29,299
94,605'
15,221
31,263
107,912
2,947
5,432
18,361
2,223
4,891
17,216
2,461
5,716
18,944
21,183
4,570
4,505
8,584
64,504
-21,933
10,113
2,174
2,103
4,286
29,045
-12,164
11,731
2,299
2,432
4,191
35,909
-14,769
2,859
466
39
1,929
5,349
-2,630
719
348
464
210
5,338
-1,285
3,032
382
446
26
10,805
-7,400
1 All sources1
? Individual income taxes, net
3 Withheld
4
Presidential Election Campaign Fund ..
Nonwithheld
6 Refunds 1
Corporation income taxes
7 Gross receipts
8 Refunds
9 Social insurance taxes and contributions,
net
10 Payroll employment taxes and
contributions 2
11 Self-employment taxes and
contributions 3
12 Unemployment insurance
13 Other net receipts 4
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 5
OUTLAYS
25
26
27
28
31
32
33
34
35
36
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Interest 7
Undistributed offsetting receipts7-8
18,974
3,802
3,737
9,601
43,966
-15,772
19,928
4,153
4,153
8,372
52,556
-18,489
1. Effective June 1978, earned income credit payments in excess of an individual's
tax liability, formerly treated as income tax refunds, are classified as outlays retroactive to January 1976.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Supplementary medical insurance premiums, federal employee retirement
contributions, and Civil Service retirement and disability fund.
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
6. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was re-
9,758
2,291
2,422
3,940
32,658
-10,387
classified from an off-budget agency to an on-budget agency in the Department of
Labor.
7. Effective September 1976, "Interest" and "Undistributed offsetting receipts"
reflect the accounting conversion from an accrual basis to a cash basis for the
interest on special issues for U.S. government accounts.
8. Consists of interest received by trust funds, rents and royalties on the Outer
Continental Shelf, and U.S. government contributions for employee retirement.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government" and the Budget of the U.S. Government, Fiscal Year 1981.
A30
DomesticNonfinancialStatistics • February 1981
1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1978
1979
1980
Item
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31.
Mar. 31
June 30
Sept. 30
1 Federal debt outstanding
780.4
797.7
804.6
812.2
833.8
852.2
870.4
884.4
914.3
2 Public debt securities
3
Held by public
4
Held by agencies
771.5
603.6
168.0
789.2
619.2
170.0
796.8
630.5
166.3
804.9
626.4
178.5
826.5
638.8
187.7
845.1
658.0
187.1
863.5
677.1
186.3
877.6
682.7
194.9
907.7
710.0
197.7
8.9
7.4
1.5
8.5
7.0
1.5
7.8
6.3
1.5
7.3
5.9
1.5
7.2
5.8
1.5
7.1
5.6
1.5
7.0
5.5
1.5
6.8
5.3
1.5
6.6
5.1
1.5
5 Agency securities
6
Held by public
Held by agencies
7
8 Debt subject to statutory limit
772.7
790.3
797.9
806.0
827.6
846.2
864.5
878.7
908.7
9 Public debt securities
10 Other debti
770.9
1.8
788.6
1.7
796.2
1.7
804.3
1.7
825.9
1.7
844.5
1.7
862.8
1.7
877.0
1.7
907.1
1.6
11 MEMO: Statutory debt limit
798.0
798.0
798.0
830.0
830.0
879.0
879.0
925.0
925.0
1. Includes guaranteed debt of government agencies, specified participation certificates, notes to international lending organizations, and District of Columbia
stadium bonds.
1.41
GROSS PUBLIC DEBT OF U.S. TREASURY
NOTE. Data from Treasury Bulletin (U.S. Treasury Department).
Types and Ownership
Billions of dollars, end of period
1980
Type and holder
1976
1977
1978
Sept.
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
14
By type
Interest-bearing debt
Marketable
Bills
Notes
Bonds
Nonmarketable 1
Convertible bonds 2
State and local government series
Foreign issues 3
Government
Public
Savings bonds and notes
Government account series 4
15 Non-interest-bearing debt
16
17
18
19
20
21
22
23
By holder 5
U.S. government agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
Mutual savings banks
Insurance companies
Other companies
State and local governments
Individuals
24
Savings bonds
25 Other securities
26 Foreign and international 6
27 Other miscellaneous investors
7
Oct.
Nov.
Dec.
Jan.
653.5
718.9
789.2
845.1
907.7
908.2
913.8
930.2
934.1
652.5
421.3'
164.0
216.7
40.6
231.2
2.3
4.5
22.3
22.3
0
72.3
129.7
715.2
459.9
161.1
251.8
47.0
255.3
2.2
13.9
22.2
22.2
0
77.0
139.8
782.4
487.5
161.7
265.8
60.0
294.8
2.2
24.3
29.6
28.0
1.6
80.9
157.5
844.0
530.7
172.6
283.4
74.7
313.2
2.2
24.6
28.8
23.6
5.3
79.9
177.5
906.4
594.5
199.8
310.9
83.8
311.9
906.9
599.4
202.3
311.9
85.2
307.5
909.4
605.4
208.7
311.1
85.5
304.0
928.9
623.2
216.1
321.6
85.4
305.7
929.8
628.5
220.4
321.2
86.9
301.3
23.6
25.2
18.7
6.4
73.0
189.8
23.9
24.8
18.4
6.4
73.0
185.7
24.0
24.5
18.1
6.4
72.8
182.4
23.8
24.0
17.6
6.4
72.5
185.1
23.7
23.8
17.4
6.4
71.4
182.2
1.1
3.7
6.8
1.2
1.3
1.3
4.4
1.3
4.2
147.1
97.0
409.5
103.8
5.9
12.7
27.7
41.6
154.8
102.5
461.3
101.4
5.9
15.5
22.7
54.8
170.0
109.6
508.6
93.1
5.0
14.9
21.2
64.4
187.1
117.5
540.5
97.0
4.7
14.4
23.9
67.4
197.7
120.7
589.2
100.9
5.3
14.4
25.5
73.4
193.4
121.5
593.3
103.4
5.5
15.3
25.3
73.1
189.7
120.4
603.2
101.8
5.6
15.4
24.8
74.6
72.0
28.8
78.1
38.9
76.7
28.6
109.6
46.0
80.7
33.3
137.8
58.2
79.9
34.2
123.8
97.6
72.7
50.0
126.0
120.7
73.0
49.9
127.6
120.2
72.5
52.5
132.6
123.4
1. Includes (not shown separately): Securities issued to the Rural Electrification
Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
2. These nonmarketable bonds, also known as Investment Series B Bonds, may
be exchanged (or converted) at the owner's option for 1 Vi percent, 5-year marketable Treasury notes. Convertible bonds that have been so exchanged are removed from this category and recorded in the notes category (line 5).
3. Nonmarketable dollar-denominated and foreign currency-denominated series
held by foreigners.
4. Held almost entirely by U.S. government agencies and trust funds.
5. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.
1981
1979
n.a.
n.a.
r
6. Consists of investments of foreign balances and international accounts in the
United States. Beginning with July 1974, the figures exclude non-interest-bearing
notes issued to the International Monetary Fund.
7. Includes savings and loan associations, nonprofit institutions, corporate pension trust funds, dealers and brokers, certain government deposit accounts, and
government sponsored agencies.
NOTE. Gross public debt excludes guaranteed agency securities and, beginning
in July 1974, includes Federal Financing Bank security issues.
Data by type of security from Monthly Statement of the Public Debt of the United
States (U.S. Treasury Department); data by holder from Treasury Bulletin.
Federal Finance
1.42
U.S. GOVERNMENT MARKETABLE SECURITIES
A31
Ownership, by maturity
Par value; millions of dollars, end of period
1980
1980
Type of holder
1978
1979
1978
Oct.
1979
Oct.
Nov.
Nov.
1 to 5 years
All maturities
1 All holders
487,546
530,731
599,406
605,381
162,886
164,198
196,129
191,614
2 U.S. government agencies and trust funds
3 Federal Reserve Banks
12,695
109,616
11,047
117,458
10,078
121,482
9,569
120,447
3,310
31,283
2,555
28,469
2,255
37,162
1,990
35,190
365,235
68,890
3,499
11,635
8,272
3,835
18,815
250,288
402,226
69,076
3,204
11,496
8,433
3,209
15,735
291,072
467,845
76,921
3,746
12,026
8,085
3,994
20,410
342,665
475,365
75,691
3,803
12,095
7,880
4,061
21,203
350,633
128,293
38,390
1,918
4,664
3,635
2,255
3,997
73,433
133,173
38,346
1,668
4,518
2,844
1,763
3,487
80,546
156,712
45,571
1,943
4,679
2,741
2,183
4,642
94,952
154,434
43,659
1,912
4,693
2,705
2,147
5,286
94,032
4 Private investors
Commercial banks
5
6
Mutual savings banks
7
Insurance companies
8
Nonfinancial corporations
9
Savings and loan associations
10 State and local governments
11 All others
5 to 10 years
Total, within 1 year
12 All holders
13 U.S. government agencies and trust funds
14 Federal Reserve Banks
15 Private investors
16 Commercial banks
17 Mutual savings banks
18 Insurance companies
19 Nonfinancial corporations
20 Savings and loan associations
21 State and local governments
22 All others
228,516
255,252
279,673
288,481
50,400
50,440
53,337
52,893
1,488
52,801
1,629
63,219
1,084
56,243
834
56,660
1,989
14,809
871
12,977
1,398
13,192
1,404
13,468
174,227
20,608
817
1,838
4,048
1,414
8,194
137,309
190,403
20,171
836
2,016
4,933
1,301
5,607
155,539
230,987
22,713
1,057
1,833
4,123
1,656
7,067
183,896
230,987
23,614
1,172
1,949
3,916
1,769
7,218
191,350
33,601
7,490
496
2,899
369
89
1,588
20,671
36,592
8,086
459
2,815
308
69
1,540
23,314
38,747
5,841
459
3,043
367
88
2,076
26,875
38,021
5,915
437
3,000
382
75
1,999
26,212
10 to 20 years
Bills, within 1 year
23 All holders
24 U.S. government agencies and trust funds
25 Federal Reserve Banks
26 Private investors
27 Commercial banks
28 Mutual savings banks
29 Insurance companies
30 Nonfinancial corporations
31 Savings and loan associations
32
State and local governments
33 All others
161,747
172,644
202,309
208,721
19,800
27,588
36,926
36,893
2
42,397
0
45,337
1
44,650
44,057
3,876
2,088
4,520
3,272
3,686
5,903
3,686
5,941
119,348
5,707
150
753
12
262
5,524
105,161
127,306
5,938
262
473
2,793
219
3,100
114,522
157,658
9,455
340
498
1,891
801
4,912
139,761
164,663
8,651
337
549
1,812
822
5,126
147,366
13,836
956
143
1,460
86
60
1,420
9,711
19,796
993
127
1,305
218
58
1,762
15,332
27,338
1,425
186
1,740
429
54
3,574
19,930
27,266
1,122
181
1,744
428
57
3,651
20,083
Over 20 years
Other, within 1 year
34 All holders
66,769
82,608
77,364
79,760
25,944
33,254
33,340
35,500
35 U.S. government agencies and trust funds
36 Federal Reserve Banks
1,487
10,404
1,629
17,882
1,083
11,593
834
12,602
1,031
8,635
1,472
9,520
1,656
8,982
1,656
9,188
37 Private investors
38 Commercial banks
39 Mutual savings banks
40
Insurance companies
41 Nonfinancial corporations
42 Savings and loan associations
43 State and local governments
44 All others
54,879
14,901
667
1,084
2,256
1,152
2,670
32,149
63,097
14,233
574
1,543
2,140
1,081
2,508
41,017
64,688
13,258
717
1,336
2,232
855
2,155
44,135
66,324
14,963
834
1,401
2,104
947
2,091
43,984
15,278
1,446
126
774
135
17
3,616
9,164
22,262
1,470
113
842
130
19
3,339
16,340
22,702
1,371
100
730
425
13
3,051
17,011
24,657
1,382
100
708
449
13
3,049
18,956
NOTE. Direct public issues only. Based on Treasury Survey of Ownership from
Treasury Bulletin (U.S. Treasury Department).
Data complete for U.S. government agencies and trust funds and Federal Reserve
Banks, but data for other groups include only holdings of those institutions that
report. The following figures show, for each category, the number and proportion
reporting as of Nov. 30, 1980: (1) 5,353 commercial banks,
460 mutual savings banks, and 723 insurance companies, each about 80 percent;
(2) 413 nonfinancial corporations and 479 savings and loan associations, each about
50 percent; and (3) 491 state and local governments, about 40 percent.
"All others," a residual, includes holdings of all those not reporting in the
Treasury Survey, including investor groups not listed separately.
A32
1.43
DomesticNonfinancialStatistics • February 1981
U.S. GOVERNMENT SECURITIES DEALERS
Transactions
Par value; averages of daily figures, in millions of dollars
1980
Item
1 U.S. government securities
2
3
4
5
6
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
1977
1978
1980, week ending Wednesday
1979
Sept.
Oct.
Nov.
Sept. 24
Oct. 1
Oct. 8
Oct. 15
Oct. 22
Oct. 29
10,838
10,285
13,183
17,608
17,464
21,716
19,832
18,413
17,836
17,905
16,068
16,823
6,746
237
2,320
1,148
388
6,173
392
1,889
965
867
7,915
454
2,417
1,121
1,276
10,789
325
3,377
1,611
1,506
11,543
350
2,745
1,060
1,766
13,768
442
3,699
1,640
2,167
11,730
290
4,754
1,686
1,372
10,818
465
3,777
1,281
2,071
11,269
304
2,926
1,372
1,966
12,586
266
2,108
1,022
1,922
11,155
430
2,256
798
1,428
10,515
373
3,339
988
1,608
By type of customer
7 U.S. government securities
dealers
8 U.S. government securities
brokers
9 Commercial banks
10 All others 1
1,268
1,135
1,448
1,503
1,296
1,745
1,902
2,093
1,251
1,339
992
1,066
3,709
2,294
3,567
3,838
1,804
3,508
5,170
1,904
4,660
7,220
2,228
6,657
7,664
2,019
6,485
9,536
2,366
8,069
8,179
2,371
7,381
7,342
2,169
6,808
7,732
2,127
6,726
7,274
2,115
7,178
7,298
1,708
6,070
7,998
1,969
5,790
11 Federal agency securities
1,729
1,894
2,723
2,666
3,277
3,074
3,392
2,822
3,348
3,414
2,947
3,194
1. Includes, among others, all other dealers and brokers in commodities and
securities, foreign banking agencies, and the Federal Reserve System.
NOTE. Averages for transactions are based on number of trading days in the
period.
1.44
U.S. GOVERNMENT SECURITIES DEALERS
Transactions are market purchases and sales of U.S. government securities dealers reporting to the Federal Reserve Bank of New York. The figures exclude
allotments of, and exchanges for, new U.S. government securities, redemptions
of called or matured securities, or purchases or sales of securities under repurchase,
reverse repurchase (resale), or similar contracts.
Positions and Sources of Financing
Par value; averages of daily figures, in millions of dollars
1980
Item
1977
1978
1980, week ending Wednesday
1979
Sept.
Oct.
Nov.
Aug. 27
Sept. 3
Sept. 10
Sept. 17
Sept. 24
Oct. 1
Positions1
1 U.S. government securities
5,172
2,656
3,223
3,338
2,701
3,279
4,351
4,500
3,784
3,656
2,921
2,164
2
3
4
5
6
4,772
99
60
92
149
2,452
260
-92
40
-4
3,813
-325
-455
160
30
3,753
-1,685
620
122
529
2,557
-1,082
755
-221
692
3,132
-792
-123
-13
1,075
4,300
-1,510
939
172
450
4,330
-1,603
648
674
451
4,063
-1,727
544
439
465
4,467
-1,741
118
183
629
3,184
-1,788
970
-69
624
2,683
-1,425
908
-359
356
693
606
1,471
320
979
357
428
269
183
259
435
486
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
7 Federal agency securities .
Financing2
8 All sources
9
10
11
12
Commercial banks
New York City
Outside New York City
Corporations 3
All others
9,877
10,204
16,003
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1,313
1,987
2,358
4,158
599
2,174
2,379
5,052
1,396
2,868
3,373
4,104
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1. Net amounts (in terms of par values) of securities owned by nonbank dealer
firms and dealer departments of commercial banks on a commitment, that is, tradedate basis, including any such securities that have been sold under agreements to
repurchase. The maturities of some repurchase agreements are sufficiently long,
however, to suggest that the securities involved are not available for trading purposes. Securities owned, and hence dealer positions, do not include securities
purchased under agreement to resell.
2. Total amounts outstanding of funds borrowed by nonbank dealer firms and
dealer departments of commercial banks against U.S. government and federal
agency securities (through both collateral loans and sales under agreements to
repurchase), plus internal funds used by bank dealer departments to finance positions in such securities. Borrowings against securities held under agreeement to
resell are excluded when the borrowing contract and the agreement to resell are
equal in amount and maturity, that is, a matched agreement.
3. All business corporations except commercial banks and insurance companies.
NOTE. Averages for positions are based on number of trading days in the period;
those for financing, on the number of calendar days in the period.
Federal Finance
1.45
A33
FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt outstanding
Millions of dollars, end of period
1980
Agency
1 Federal and federally sponsored agencies1
2 Federal agencies
3
Defense Department 2
4
Export-Import Bank3-4
Federal Housing Administration 5
5
6
Government National Mortgage Association
participation certificates 6
7
Postal Service7
8
Tennessee Valley Authority
9
United States Railway Association 7
10 Federally sponsored agencies1
11 Federal Home Loan Banks
12 Federal Home Loan Mortgage Corporation
13 Federal National Mortgage Association
14 Federal Land Banks
15 Federal Intermediate Credit Banks
16 Banks for Cooperatives
17 Farm Credit Banks 1
18 Student Loan Marketing Association 8
19 Other
1976
1977
1978
Mar.
Apr.
May
June
July
Aug.
103,848
112,472
137,063
173,216
176,880
179,062
179,353
180,119
179,545
22,419
1,113
8,574
575
22,760
983
8,671
581
23,488
968
8,711
588
25,583
709
9,627
550
25,776
688
9,615
537
25,904
679
9,597
531
26,667
674
10,275
524
26,810
661
10,248
516
26,930
651
10,232
508
4,120
2,998
4,935
104
3,743
2,431
6,015
336
3,141
2,364
7,460
356
2,979
1,837
9,440
441
2,937
1,837
9,695
467
2,937
1,770
9,920
470
2,877
1,770
10,075
472
2,842
1,770
10,300
473
2,842
1,770
10,445
482
81,429
16,811
1,690
30,565
17,127
10,494
4,330
410
2
89,712
18,345
1,686
31,890
19,118
11,174
4,434
2,548
515
2
113,575
27,563
2,262
41,080
20,360
11,469
4,843
5,081
915
2
147,633
35,309
2,644
51,614
15,106
2,144
584
38,446
1,785
1
151,104
36,352
2,643
52,456
13,940
2,144
584
41,039
1,945
1
153,158
37,540
2,642
52,573
13,940
2,144
584
41,629
2,105
1
152,686
36,748
2,642
52,389
13,940
2,144
584
42,058
2,180
1
153,309
36,039
2,634
52,114
12,765
1,821
584
45,111
2,240
1
152,615
35,690
2,634
52,001
12,765
1,821
584
44,824
2,295
1
28,711
38,580
51,298
71,885
74,009
76,009
77,408
78,870
80,024
5,208
2,748
410
3,110
104
5,834
2,181
515
4,190
336
6,898
2,114
915
5,635
356
8,849
1,587
1,785
7,715
441
8,849
1,587
1,945
7,970
467
8,849
1,520
2,105
8,195
470
9,558
1,520
2,180
8,350
472
9,558
1,520
2,240
8,575
473
9,558
1,520
2,295
8,720
482
10,750
1,415
4,966
16,095
2,647
6,782
23,825
4,604
6,951
33,410
7,039
11,059
34,755
7,155
11,281
35,745
7,631
11,494
35,745
7,942
11,641
36,715
8,084
11,705
37,403
8,233
11,813
MEMO:
20 Federal Financing Bank debt 7 ' 9
21
22
23
24
25
Lending to federal and federally sponsored agencies
Export-Import Bank 4
Postal Service7
Student Loan Marketing Association 8
Tennessee Valley Authority
United States Railway Association 7
Other Lending10
26 Farmers Home Administration
27 Rural Electrification Administration
28 Other
1. In September 1977 the Farm Credit Banks issued their first consolidated bonds,
and in January 1979 they began issuing these bonds on a regular basis to replace
the financing activities of the Federal Land Banks, the Federal Intermediate Credit
Banks, and the Banks for Cooperatives. Line 17 represents those consolidated
bonds outstanding, as well as any discount notes that have been issued. Lines 1
and 10 reflect the addition of this item.
2. Consists of mortgages assumed by the Defense Department between 1957 and
1963 under family housing and homeowners assistance programs.
3. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
4. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
5. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the securities market.
6. Certificates of participation issued prior to fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; D e p a r t m e n t of H e a l t h , E d u c a t i o n , and Welfare; D e p a r t m e n t
of Housing and Urban Development; Small Business Administration; and the
Veterans Administration.
7. Off-budget.
8. Unlike other federally sponsored agencies, the Student Loan Marketing Association may borrow from the Federal Financing Bank (FFB) since its obligations
are guaranteed by the Department of Health, Education, and Welfare.
9. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since FFB incurs
debt solely for the purpose of lending to other agencies, its debt is not included
in the main portion of the table in order to avoid double counting.
10. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any particular agency being generally small. The Farmers Home Administration item consists
exclusively of agency assets, while the Rural Electrification Administration entry
contains both agency assets and guaranteed loans.
A34
1.46
DomesticNonfinancialStatistics • February 1981
NEW SECURITY ISSUES of State and Local Governments
Millions of dollars
1980
Type of issue or issuer,
or use
1977
1979
1978
May r
Apr.''
1 All issues, new and refunding
2
3
4
5
1
Type of issue
General obligation
Revenue
Housing Assistance Administration 2
U.S. government loans
June'
July'
Aug/
Sept.
46,769
48,607
43,490
4,947
4,713
6,063
4,907
3,809
4,255
18,042
28,655
17,854
30,658
12,109
31,256
1,695
3,251
1,580
3,129
1.924
4,136
1,396
3,506
804
2,995
1,344
2,902
72
95
125
1
4
3
5
10
9
Tvpe of issuer
6 State
7 Special district and statutory authority
8 Municipalities, counties, townships, school districts
6,354
21,717
18,623
6,632
24,156
17,718
4.314
23,434
15.617
466
2,221
2,259
749
2,326
1,633
897
3,440
1,724
185
3,157
1,558
304
2,212
1,283
640
2,603
1,003
9 Issues for new capital, total
36,189
37,629
41,505
4,806
4,645
5,986
4,539
3,783
3,639
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
5,076
2.951
8,119
8,274
4,676
7,093
5,003
3,460
9,026
10,494
3,526
6,120
5.130
2,441
8,594
15,968
3,836
5.536
491
302
625
2.071
373
944
310
197
721
1,831
526
1,060
753
344
585
3,007
367
930
631
151
1,260
1,695
188
614
266
95
1,176
1,424
341
481
422
425
716
1,198'
331
547
10
11
12
13
14
15
1. Par amounts of long-term issues based on date of sale.
2. Only bonds sold pursuant to the 1949 Housing Act, which are secured by
contract requiring the Housing Assistance Administration to make annual contributions to tne local authority.
1.47
SOURCE. Public Securities Association.
NEW SECURITY ISSUES of Corporations
Millions of dollars
Type of issue or issuer,
or use
1980
1977
1978
1979
May
June
July
Aug.
Sept.
Oct.
Nov.
1 All issues1
53,792
47,230
51,464
9,067
9,511
7,941
5,371
4,922
5,728
3,827
2 Bonds
42,015
36,872
40,139
7,335
8,148
6,567
4,147
2,813
3,275
2,055
Tvpe of offering
3 Public
4 Private placement
24,072
17,943
19.815
17,057
25.814
14,325
6.810
525
7,548
600
5,354
1,213
3,843
304
2,421
392
2,756
519
1,405
650
12,204
6,234
1,996
8,262
3,063
10,258
9.572
5,246
2.007
7,092
3.373
9.586
9,667
3,941
3,102
8,118
4,219
11,095
2.400
560
364
723
1.171
2.116
2.318
1.629
385
1.412
209
2,195
2,851
999
329
316
787
1,284
1,499
203
338
971
580
556
509
357
401
555
517
472
614
312
236
754
791
568
88
432
86
565
163
722
11,777
10,358
11,325
1,732
1,363
1,374
1,224
2,109
2,453
1,772
3.916
7,861
2,832
7,526
3,574
7,751
202
1.530
382
981
360
1,014
101
1,123
392
1,717
535
1,918
256
1,516
1,189
1.834
456
5,865
1,379
1,049
1.241
1.816
263
5,140
264
1.631
1,679
2,623
255
5,171
303
1,293
215
512
27
615
25
338
127
202
9
494
126
406
165
390
293
238
32
463
46
152
502
569
54
633
6
345
848
321
117
526
67
574
418
509
53
227
113
452
5
6
7
8
9
10
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
11 Stocks
Tvpe
12 Preferred
13 Common
14
15
16
17
18
19
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures, which represent gross proceeds of issues maturing in more than one
year, sold for cash in the United States, are principal amount or number of units
multiplied by offering price. Excludes offerings of less than $100,000, secondary
offerings, undefined or exempted issues as defined in the Securities Act of
714
104
1933, employee stock plans, investment companies other than closed-end, intracorporate transactions, and sales to foreigners.
SOURCE. Securities and Exchange Commission.
Corporate Finance
1.48
OPEN-END INVESTMENT COMPANIES
A35
Net Sales and Asset Position
Millions of dollars
1980
Item
1979
1980
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
INVESTMENT COMPANIES 1
1 Sales of own shares 2
2 Redemptions of own shares 3
3 Net sales
4 Assets4
5
Cash position 5
6
Other
7,495
8,393
-898
15,293
12,012
3,281
1,175
647
528
1,772
775
997
1,890
863
1,027
1,507
1,019
488
1,405
1,228
177
1,523
1,362
161
49,277'
4,983
44,294'
58,400
5,321
53,079
50,539
6,209
44,330
52,946
6,495
46,451
54,406
5,629
48,777
54,941
5,619
49,322
55,779
5,481
50,298
56,156
5,460
50,696
1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment
of capital gains distributions and share issue of conversions from one fund to
another in the same group.
3. Excludes share redemption resulting from conversions from one fund to another in the same group.
4. Market value at end of period, less current liabilities.
1.49
1,289
1,086
203
1,269
1,720
-451
60,329'
5,467'
54,862'
58,400
5,321
53,079
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.
CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1979'
Account
1977'
1978'
1980'
1979'
Q1
Q2
Q3
Q4
Q1
Q2
Q3
1 Profits before tax
192.6
223.3
255.4
253.1
250.9
262.0
255.4
277.1
217.9
237.6
2
3
4
5
6
7
72.6
120.0
38.7
81.3
110.4
191.7
83.0
140.3
43.1
97.2
122.9
220.1
87.6
167.7
48.6
119.1
139.5
258.6
88.5
164.6
47.5
117.1
131.9
249.0
86.4
164.5
48.3
116.2
137.2
253.4
88.4
173.6
48.6
125.0
142.6
267.6
87.2
168.2
50.1
118.1
146.4
264.5
94.2
182.9
52.4
130.5
151.7
282.2
71.5
146.4
54.2
92.2
155.4
247.6
78.5
159.1
55.1
104.0
160.5
264.5
Profits tax liability
Profits after tax
Dividends
Undistributed profits
Capital consumption allowances
Net cash flow
SOURCE. Survey of Current Business (U.S. Department of Commerce).
A36
1.50
DomesticNonfinancialStatistics • February 1981
NONFINANCIAL CORPORATIONS
Current Assets and Liabilities
Billions of dollars, except for ratio
1979
Account
1975
1976
1977
1980
1978
02
03
04
Q1
02
03
1 Current assets
759.0
826.8
902.1
1,030.0
1,108.2
1,169.5
1,200.9
1,235.2
2
3
4
5
6
82.1
19.0
272.1
315.9
69.9
88.2
23.4
292.8
342.4
80.1
95.8
17.6
324.7
374.8
89.2
104.5
16.3
383.8
426.9
98.5
100.1
18.6
421.1
465.2
103.2
103.7
15.8
453.0
489.4
107.7
116.1
15.6
456.8
501.7
110.8
110.2
15.1
471.2
519.5
119.3
111.5'
13.8'
464.2
525.7
118.7
113.2
16.3
479.2
525.1
122.0
7 Current liabilities
451.6
494.7
549.4
665.5
724.7
777.8
809.1
838.3
828.1
852.1
8 Notes and accounts payable
9 Other
264.2
187.4
281.9
212.8
313.2
236.2
373.7
291.7
406.4
318.3
438.8
339.0
456.3
352.8
467.9
370.4
463.1
364.9
477.3
374.8
307.4
332.2
352.7
364.6
383.5
391.7
391.8
397.0
405.7
403.7
1.681
1.672
1.642
1.548
1.529
1.504
1.484
1.474
1.490
1.474
Cash
U.S. government securities
Notes and accounts receivable
Inventories
Other
10 Net working capital
11 MEMO: Current ratio
1
1. Ratio of total current assets to total current liabilities.
1,233.8
1,255.8
All data in this table reflect the most current benchmarks. Complete data are
available upon request from the Flow of Funds Section, Division of Research and
Statistics.
NOTE. For a description of this series, see "Working Capital of Nonfinancial
C o r p o r a t i o n s " in t h e J u l y 1978 BULLETIN, p p . 5 3 3 - 3 7 .
SOURCE. Federal Trade Commission.
1.51
TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1979
Industry
1 Total nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5
Railroad
6
Air
7
Other
Public utilities
8
Electric
9
Gas and other
10 Trade and services
11 Communication and other 1
1979
1981
03
04
Q1
02
03
Q4 2
Ol2
Q2 2
270.46
294.30
273.15
284.30
291.89
294.36
296.23
294.95
310.59
323.84
51.07
47.61
58.25
56.65
52.13
47.97
55.03
51.55
58.28
53.49
59.38
56.32
58.19
58.21
57.42
57.96
60.23
62.46
65.36
65.21
11.38
13.50
11.40
11.86
11.89
12.81
13.86
15.25
16.07
18.02
4.03
4.01
4.31
4.17
3.97
3.84
4.13
3.95
4.60
4.24
4.55
4.41
4.46
3.90
4.11
4.06
4.27
3.76
3.98
4.06
4.18
4.22
3.59
3.44
3.62
4.04
3.83
4.07
3.41
4.13
27.65
6.31
79.26
34.83
27.44
7.18
82.28
37.02
28.71
6.35
78.86
35.05
27.16
6.92
82.69
35.90
28.98
7.28
82.17
37.34
27.91
7.12
81.07
37.66
28.14
7.44
81.19
36.97
25.05
6.90
84.87
36.26
27.99
8.79
84.09
39.48
27.93
8.29
87.43
40.01
1. "Other" consists of construction; social services and membership organization;
and forestry, fisheries, and agricultural services.
1980
19802
2. Anticipated by business,
SOURCE. Survey of Current Business (U.S. Dept. of Commerce).
Corporate Finance
1.52
DOMESTIC FINANCE COMPANIES
A37
Assets and Liabilities
Billions of dollars, end of period
1979
1974
Account
1975
1976
1977
1980
1978
Q3
Q4
Q1
02
Q3
ASSETS
Accounts receivable, gross
Consumer
Business
Total
LESS: Reserves for unearned income and losses . . .
Accounts receivable, net
Cash and bank deposits
Securities
Allother
36.1
37.2
73.3
9.0
64.2
3.0
.4
12.0
36.0
39.3
75.3
9.4
65.9
2.9
1.0
11.8
38.6
44.7
83.4
10.5
72.9
2.6
1.1
12.6
44.0
55.2
99.2
12.7
86.5
2.6
.9
14.3
52.6
63.3
116.0
15.6
100.4
3.5
1.3
17.3
62.3
68.1
130.4
18.7
111.7
65.7
70.3
136.0
20.0
116.0
67.7
70.6
138.4
20.4
118.0
70.2
70.3
140.4
21.4
119.0
71.7
66.9
138.6
22.3
116.3
25.81
24.9
23.7
26.1
28.3
79.6
81.6
89.2
104.3
122.4
137.4
140.9
141.7
145.1
144.7
10 Bank loans
11 Commercial paper
9.7
20.7
8.0
22.2
6.3
23.7
5.9
29.6
6.5
34.5
7.8
39.2
8.5
43.3
9.7
40.8
10.1
40.7
10.1
40.5
12
13
14
4.9
26.5
5.5
4.5
27.6
6.8
5.4
32.3
8.1
6.2
36.0
11.5
8.1
43.6
12.6
9.1
47.5
15.4
8.2
46.7
14.2
7.4
48.9
15.7
7.9
50.5
16.0
7.7
52.0
14.6
1
2
3
4
5
6
7
8
9 Total assets
LIABILITIES
Short-term, n.e.c
Long-term n.e.c
Other
15 Capital, surplus, and undivided profits
12.4
12.5
13.4
15.1
17.2
18.4
19.9
19.2
19.9
19.8
16 Total liabilities and capital
79.6
81.6
89.2
104.3
122.4
137.4
140.9
141.7
145.1
144.7
1. Beginning Q1 1979, asset items on lines 6, 7, and 8 are combined.
NOTE. Components may not add to totals due to rounding.
1.53
DOMESTIC FINANCE COMPANIES
Business Credit
Millions of dollars, seasonally adjusted except as noted
Type
Accounts
receivable
outstanding
Oct. 31,
19801
Changes in accounts
receivable
Extensions
Repayments
1980
1980
1980
Aug.
Sept.
Aug.
Oct.
Sept.
Oct.
Aug.
Sept.
Oct.
1 Total
68,901
-412
-321
647
15,545
14,808
16,781
15,957
15,129
16,134
2 Retail automotive (commercial vehicles)
3 Wholesale automotive
4 Retail paper on business, industrial and
farm equipment
5 Loans on commercial accounts receivable and
factored commercial accounts receivable .
6 All other business credit
12,758
10,584
-232
-101
-221
-333
-128
62
883
4,710
889
4,125
969
5,223
1,115
4,811
1,110
4,458
1,097
5,161
1. Not seasonally adjusted.
22,212
155
586
16
1,601
1,595
1,460
1,446
1,009
1,444
6,265
17,082
-358
124
-827
474
408
289
6,349
2,002
5,938
2,261
6,756
2,373
6,707
1,878
6,765
1,787
6,348
2,084
A38
1.54
DomesticNonfinancialStatistics • February 1981
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1980
Item
1979
1978
1980
July
June
Aug.
Sept.
Oct.
Nov.
Dec.
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) 2
Contract rate (percent per annum)
Yield (percentper
7 FHLBB series3
8 HUD series4
62.6
45.9
75.3
28.0
1.39
9.30
74.4
53.3
73.9
28.5
1.66
10.48
83.5
59.3
73.3
28.2
2.10
12.25
81.3
58.0
74.1
28.4
2.21
12.24
89.0
63.7
73.5
28.9
2.13
12.11
88.6
61.5
71.2
27.7
2.12
11.84
83.7
58.7
72.2
27.6
2.10
11.95
84.0
61.3
75.0
28.2
2.16
12.20
77.1
56.1
75.2
27.6
2.15
12.62
90.1
63.9
72.9
28.2
2.15
12.86
9.54
9.68
10.77
11.15
12.65
13.95
12.66
12.45
12.51
12.45
12.25
13.25
12.35
13.70
12.60
14.10
13.04
14.70
13.28
15.05
9.70
8.98
10.87
10.22
13.42
12.55
11.85
11.04
12.39
11.53
13.54
12.34
14.26
12.84
14.38
12.91
14.47
13.55
14.08
13.62
9.77
10.01
11.17
11.77
14.11
14.43
12.35
12.93
12.65
12.80
13.92
13.66
14.77
14.45
14.94
14.70
15.53
15.30
15.21
15.54
annum)
SECONDARY MARKETS
9
10
11
12
Yield (percent per annum)
FHA mortgages (HUD series) 5
GNMA securities6
FNMA auctions7
Government-underwritten loans
Conventional loans
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
13 Total
14 FHA-insured
15 VA-guaranteed
16 Conventional
43,311
15,511'
10,544
11,524
51,091
18,886
10,496
16,106
51,327
n.a.
n.a.
18,358
55,419
n.a.
n.a.
18,001
55,362
n.a.
n.a.
18,034
55,361
n.a.
n.a.
18,049
55,632
n.a.
n.a.
18,074
56,188
n.a.
n.a.
18,148
56,619
n.a.
n.a.
18,239
57,327
n.a.
n.a.
18,358
Mortgage transactions (during period)
17 Purchases
18 Sales
12,303
gr
10,805
0
8,100
0
206
0
100
0
167
0
500
0
771
0
579
0
840
0
18,959'
9,185'
10,179
6,409
8,044
3,278
441
4,215
734
4,230
1,180
4,545
1,070
4,789
514
4,399
472
3,963
403
3,278
12,978
6,747.2
8,860
3,921
8,605
4,002
602.5
266.5
1,055.6
430.3
1,063.3
628.10
907.0
538.0
427.8
257.7
252.0
135.6
242.1
110.8
9,933.0
5,111'
4,495
2,344
3,639
1,749
169.7
76.0
228.7
140.9
430.4
218.8
347.7
209.8
107.6
93.9
81.6
68.8
84.8
54.1
Mortgage holdings (end of period)1®
25 Total
26
FHA/VA
27
Conventional
3,064
1,243
1,165'
4,035
1,102
1,957
n.a.
n.a.
n.a.
4,014
1,072
2,942
4,151
1,066
3,085
4,295
1,058
3.237
4,543
1,050
3,492
4,727
1,044
3,629
4,843
1,038
3,715
n.a.
n.a.
n.a.
Mortgage transactions (during period)
28 Purchases
29 Sales
6,525'
6,211
5,717
4,544
n.a.
n.a.
225
232
440
288
495
320
521
275
398
187
231
93.7
n.a.
n.a.
Mortgage commitments11
30 Contracted (during period)
31 Outstanding (end of period)
7,451
1,410
5,542
797
n.a.
n.a.
577
1,246
708
1,386
476
1,300
218
934
222
726
180
653
n.a.
n.a.
8
Mortgage commitments
19 Contracted (during period)
20 Outstanding (end of period)
Auction of 4-month commitments to buy
Government-underwritten loans
Offered 9
Accepted
Conventional loans
23
Offered 9
24
Accepted
21
22
FEDERAL HOME LOAN MORTGAGE CORPORATION
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) in order 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,
rounded to the nearest 5 basis points; 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. Any gaps in data are due to periods of adjustment to changes in
maximum permissible contract rates.
6. Average net yields to investors on Government National Mortgage Association g u a r a n t e e d , m o r t g a g e - b a c k e d , 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 unweighted averages of
Monday quotations for the month.
7. Average gross yields (before deduction of 38 basis points for mortgage servicing) on accepted bids in Federal National Mortgage Association's auctions of 4month commitments to purchase home mortgages, assuming prepayment in 12
years for 30-year mortgages. No adjustments are made for FNMA commitment
fees or stock related requirements. Monthly figures are unweighted averages for
auctions conducted within the month.
8. 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.
9. Mortgage amounts offered by bidders are total bids received.
10. Includes participation as well as whole loans.
11. Includes conventional and government-underwritten loans.
Real Estate Debt
1.55
A39
MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
1980
1979
Type of holder, and type of property
1978
1979
1980
04
1 All holders
7
3
4 Commercial
5
6 Major financial institutions
7 Commercial banks 1
1- to 4-family
8
9
Multifamily
Commercial
Ifl
Farm
11
Q1
Q2
Q3
04
1,168,486'
1,324,856'
1,449,633
1,333,550
1,355,402'
1,378,414'
1,412,515'
1,449,633
764,246'
121,285'
211,749'
71,206'
875,874'
129,261'
237,205'
82,516'
956,475
137,859
258,799
96,500
872,068
130,713
238,412
92,357
894,980'
130,800'
242,709'
86,913'
908,119'
132,430'
246,861'
91,004'
931,232'
134,856'
252,783'
93,644'
956,475
137,859
258,799
96,500
848,177'
214,045'
129,167'
10,266'
66,115'
8,497'
938,676'
245,187'
149,460'
11,180'
75,957'
8,590'
998,025
264,602
160,746
12,304
82,688
8,864
939,487
245,998
145,975
12,546
77,096
10,381
951,402'
250,702'
152,553'
11,557'
77,993'
8,599'
958,892'
253,103'
153,753'
11,764'
79,110'
8,476'
977,454'
258,003'
156,737'
11,997'
80,626'
8,643'
998,025
264,602
160,746
12,304
82,688
8,864
95,157
62,252
16,529
16,319
57
98,908
64,706
17,180
16,963
59
99,827
65,307
17,340
17,120
60
98,908
64,706
17,180
16,963
59
99,151
64,865
17,223
17,004
59
99,150
64,864
17,223
17,004
59
99,306
64,966
17,249
17,031
60
99,827
65,307
17,340
17,120
60
1?
13
14
15
16
Mutual savings banks
1- to 4-family
Multifamily
Commercial
Farm
17
18
19
20
Savings and loan associations
1- to 4-family
Multifamily
Commercial
432,808
356,114
36,053
40,641
475,797
394,436
37,588
43,773
502,718
417,759
39,011
45,948
475,797
394,436
37,588
43,773
479,078
398,114
37,224
43,740
481,184
398,864
37,340
43,980
492,068
408,908
38,185
44,975
502,718
417,759
39,011
45,948
71
77
73
74
25
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
106,167
14,436
19,000
62,232
10,499
118,784
16,193
19,274
71,137
12,180
130,878
18,420
19,813
79,843
12,802
118,784
16,193
19,274
71,137
12,180
122,471
16,850
19,590
73,618
12,413
125,455
17,796
19,284
75,693
12,682
128,077
17,996
19,357
77,995
12,729
130,878
18,420
19,813
79,843
12,802
81,853
3,509
877
2,632
97,293
3,852
763
3,089
114,325
4,453
709
3,744
97,293
3,852
763
3,089
104,133
3,919
749
3,170
108,742
4,466
736
3,730
110,695
4,389
719
3,670
114,325
4,453
709
3,744
926
288
320
101
217
1,274
417
71
174
612
3,725
1,033
818
391
1,483
1,274
417
71
174
612
2,845
1,139
408
409
889
3,375
1,383
636
402
954
3,525
978
774
370
1,403
3,725
1,033
818
391
1,483
5,419
1,641
3,778
5,764
1,863
3,901
5,824
1,879
3,945
5,764
1,863
3,901
5,833
1,908
3,925
5,894
1,953
3,941
5,769
1,826
3,943
5,824
1,879
3,945
26 Federal and related agencies
Government National Mortgage Association
27
1- to 4-family
28
29
Multifamily
30
31
32
33
34
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
35
36
37
Federal Housing and Veterans Administration
1- to 4-family
Multifamily
38
39
40
Federal National Mortgage Association
1- to 4-family
Multifamily
43,311
37,579
5,732
51,091
45,488
5,603
57,327
51,775
5,552
51,091
45,488
5,603
53,990
48,394
5,596
55,419
49,837
5,582
55,632
50,071
5,561
57,327
51,775
5,552
41
42
43
Federal Land Banks
1- to 4-family
Farm
25,624
927
24,697
31,277
1,552
29,725
38,131
2,099
36,032
31,277
1,552
29,725
33,311
1,708
31,603
35,574
1,893
33,681
36,837
1,985
34,852
38,131
2,099
36,032
44
45
46
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
3,064
2,407
657
4,035
3,059
976
4,865
3,710
1,155
4,035
3,059
976
4,235
3,210
1,025
4,014
3,037
977
4,543
3,459
1,084
4,865
3,710
1,155
88,633
54,347
52,732
1,615
119,278
76,401
74,546
1,855
142,498
93,874
91,602
2,272
119,278
76,401
74,546
1,855
124,632
80,843
78,872
1,971
129,647
84,282
82,208
2,074
136,583'
89,452
87,276
2,176
142,498
93,874
91,602
2,272
47 Mortgage pools or trusts 2
48 Government National Mortgage Association
1- to 4-family
49
50
Multifamily
51
52
53
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
11,892
9,657
2,235
15,180
12,149
3,031
16,952
13,397
3,555
15,180
12,149
3,031
15,454
12,359
3,095
16,120
12,886
3,234
16,659
13,318
3,341
16,952
13,397
3,555
54
55
56
57
58
Farmers Home Administration
1- to 4-family
22,394
13,400
1,116
3,560
4,318
27,697
14,884
2,163
4,328
6,322
31,672
16,865
2,323
5,258
7,226
27,697
14,884
2,163
4,328
6,322
28,335
14,926
2,159
4,495
6,755
29,245
15,224
2,159
4,763
7,099
30,472'
16,226'
2,235'
5,059'
6,952'
31,672
16,865
2,323
5,258
7,226
149,823'
82,769'
21,352'
22,781'
22,921'
169,609'
96,358'
23,350'
24,873'
25,028'
194,785
111,174
26,027
27,551
30,033
177,492
96,037
23,436
24,941
33,078
175,235'
99,333'
23,857'
25,450'
26,595'
181,133'
102,685'
24,486'
25,909'
28,053'
187,783'
106,767'
25,284'
26,727'
29,005'
194,785
111,174
26,027
27,551
30,033
Commercial
59 Individual and others 3
1- to 4-family
60
61 Multifamily
62 Commercial
63 Farm
1. Includes loans held by nondeposit trust companies but not bank trust departments.
2. Outstanding principal balances of mortgages backing securities insured or
guaranteed by the agency indicated.
3. Other holders include mortgage companies, real estate investment trusts, state
and local credit agencies, state and local retirement funds, noninsured pension
funds, credit unions, and U.S. agencies for which amounts are small or separate
data are not readily available.
NOTE. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve in conjunction with the
Federal Home Loan Bank Board and the Department of Commerce. Separation
of nonfarm mortgage debt by type of property, if not reported directly, and interpolations and extrapolations when required, are estimated mainly by the Federal
Reserve. Multifamily debt refers to loans on structures of five or more units.
A40
1.56
DomesticNonfinancialStatistics • February 1981
C O N S U M E R I N S T A L L M E N T C R E D I T ' Total Outstanding, and Net Change
Millions of dollars
1980
Holder, and type of credit
1977
1978
1979
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Amounts outstanding (end of period)
1 Total
230,564
273,645
312,024
304,399
303,853
305,763
306,926
307,222
308,051
313,435
112,373
44,868
37,605
23,490
7,089
2,963
2,176
136,016
54,298
44,334
25,987
7,097
3,220
2,693
154,177
68,318
46,517
28,119
8,424
3,729
2,740
147,883
73,118
42,995
24,786
8,823
4,175
2,619
146,555
73,909
42,644
24,620
8,991
4,500
2,634
146,548
74,433
43.347
24,918
9,141
4,710
2,666
146,362
74,823
43,562
25,301
9,266
4,872
2,740
145,895
74,985
43,518
25,703
9,611
4,736
2,774
145,147
75,690
43,606
26,469
9,687
4,662
2,790
145,765
76,756
44,041
29,410
9,911
4,717
2,835
By major type of credit
9 Automobile
10 Commercial banks
n
Indirect paper
12
Direct loans
13 Credit unions
14 Finance companies
82,911
49,577
27,379
22,198
18,099
15,235
101,647
60,510
33,850
26,660
21,200
19,937
116,362
67,367
38,338
29,029
22,244
26,751
116,456
64,224
36,948
27,276
20,558
31,674
116,125
63,344
36,233
27,111
20,392
32,389
116,868
63,177
36,047
27,130
20,728
32,963
116,781
62,734
35,768
26,966
20,831
33,216
116,657
62,350
35,572
26,778
20,810
33,497
116,517
61,848
35,284
26,564
20,852
33,817
116,327
61,025
34,857
26,168
21,060
34,242
15 Revolving
16 Commercial banks
1/
Retailers
18 Gasoline companies
39,274
18,374
17,937
2,963
48,309
24,341
20,748
3,220
56,937
29,862
23.346
3,729
53,042
28,280
20,587
4,175
53,036
28,073
20,463
4,500
53,771
28,305
20,756
4,710
54,406
28,403
21,131
4,872
54,598
28,331
21,531
4,736
55,304
28,360
22,282
4,662
59,862
30,001
25,144
4,717
19 Mobile home
20 Commercial banks
21 Finance companies
22 Savings and loans
23 Credit unions
14,945
9,124
3,077
2,342
402
15,235
9,545
3,152
2,067
471
16,838
10,647
3,390
2,307
494
16,988
10,593
3,544
2,391
460
17,004
10,568
3,546
2,437
453
17,068
10,564
3,566
2,477
461
17,113
10,538
3,601
2,511
463
17,276
10,502
3,657
2,654
463
17,293
10,452
3,702
2,675
464
17,327
10,376
3,745
2,737
469
24 Other
25
Commercial banks
26
Finance companies
27
Credit unions
28
Retailers
29 Savings and loans
30 Mutual savings banks
93,434
35,298
26,556
19,104
5,553
4,747
2,176
108,454
41,620
31,209
22,663
5,239
5,030
2,693
121,887
46,301
38,177
23,779
4,773
6,117
2,740
117,913
44,786
37,900
21,977
4,199
6,432
2,619
117,688
44,570
37,974
21,799
4,157
6,554
2,634
118,056
44,502
37,904
22,158
4,162
6,664
2,666
118,626
44,687
38,006
22,268
4,170
6,755
2,740
118,691
44,712
37,831
22,245
4,172
6,957
2,774
118,937
44,487
38,171
22,290
4,187
7,012
2,790
119,919
44,363
38,769
22,512
4,266
7,174
2,835
2
3
4
5
6
/
8
By major holder
Commercial banks
Finance companies
Credit unions
Retailers 2
Savings and loans
Gasoline companies
Mutual savings banks
Net change (during period) 3
31 Total
35,462
43,079
38,381
-2,045
-1,199
489
1,055
702
839
1,619
18,645
5,949
6,436
2,654
1,309
132
337
23,641
9,430
6,729
2,497
7
257
518
18,161
14,020
2,185
2,132
1,327
509
47
-1.783
744
-1,298
68
96
124
4
-1,749
439
-270
89
155
132
5
-682
387
465
160
5
136
18
-265
613
36
456
93
90
32
-336
454
63
134
246
98
43
-120
594
218
52
-14
72
37
-276
860
378
316
190
83
68
By major type of credit
39 Automobile
40 Commercial banks
41
Indirect paper
42
Direct loans
43 Credit unions
44
Finance companies
15,204
9,956
5,307
4,649
2,861
2,387
18,736
10,933
6,471
4,462
3,101
4,702
14,715
6,857
4,488
2,369
1,044
6,814
-1,026
-1,007
-601
-406
-636
617
-717
-1,083
-784
-299
-108
474
355
-344
-286
-58
215
484
84
-362
-282
-80
10
436
201
-348
-170
-178
18
531
245
-138
-44
-94
101
282
302
-491
-181
-310
174
619
45 Revolving
46
Commercial banks
47
Retailers
48
Gasoline companies
6,248
4,015
2,101
132
9,035
5,967
2,811
257
8,628
5,521
2,598
509
-95
-338
119
124
38
-259
165
132
281
-24
169
136
478
-81
469
90
273
-19
194
98
265
121
72
72
616
211
322
83
49 Mobile home
50
Commercial banks
51 Finance companies
52
Savings and loans
53 Credit unions
371
387
-187
101
70
286
419
74
-276
69
1,603
1,102
238
240
23
58
26
12
29
-9
14
-23
-2
45
-6
33
-8
14
21
6
43
-22
30
35
0
141
-21
42
120
0
24
-33
44
11
2
66
-34
48
47
5
13,639
4,287
3,749
3,505
553
1,208
337
15,022
6,322
4,654
3,559
-314
283
518
13,435
4,681
6,968
1,118
-466
1,087
47
-982
-464
115
-653
-51
67
4
-534
-384
-33
-156
-76
110
5
-180
-306
-111
244
-9
-16
18
450
200
147
26
-13
58
32
87
52
-119
45
-60
126
43
305
-70
268
115
-20
-25
37
635
38
193
199
-6
143
68
32
33
34
35
36
37
38
By major holder
Commercial banks
Finance companies
Credit unions
Retailers 2
Savings and loans
Gasoline companies
Mutual savings banks
54 Other
55
Commercial banks
56
Finance companies
57
Credit unions
58
Retailers
59
Savings and loans
60 Mutual savings banks
1. The Board's series cover most short- and intermediate-term credit extended
to individuals through regular business channels, usually to finance the purchase
of consumer goods and services or to refinance debts incurred for such purposes,
and scheduled to be repaid (or with the option of repayment) in two or more
installments.
2. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
3. Net change equals extensions minus liquidations (repayments, charge-offs,
and other credit); figures for all months are seasonally adjusted.
Consumer Debt
1.57
A41
C O N S U M E R I N S T A L L M E N T C R E D I T Extensions and Liquidations
Millions of dollars; monthly data are seasonally adjusted.
1980
Holder, and type of credit
1977
1978
1979
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Extensions
257,600
297,668
324,777
22,349
23,997
26,176
27,064
27,365
25,991
27,149
117,896
41,989
34,028
42,183
4,978
14,617
1,909
142,433
50,505
38,111
44,571
3,724
16,017
2,307
154,733
61,518
34,926
47,676
5,901
18,005
2,018
9,892
4,439
1.318
4,186
518
1,847
149
10,098
4,809
2,305
4,148
582
1,902
153
11,107
5,155
3,085
4,263
454
1,941
171
11,671
5,355
2,752
4,596
539
1,965
186
11,977
5,323
2,872
4,291
695
2,009
198
11,432
4,852
2,795
4,250
444
2,024
194
11,484
5,185
3,035
4,497
658
2,061
229
By major type of credit
9 Automobile
10 Commercial banks
11
Indirect paper
12
Direct loans
13 Credit unions
14 Finance companies
75,641
46,363
25,149
21,214
16,616
12,662
87,981
52,969
29,342
23,627
18,539
16,473
93,901
53,554
29,623
23,931
17,397
22,950
5.550
2,815
1.490
1,325
707
2.028
6,068
2,771
1,329
1,442
1,197
2,100
7,400
3,606
1,866
1,740
1,570
2,224
7,518
3,713
2,035
1,678
1,455
2,350
7,544
3,791
2,135
1.656
1,457
2,296
7,117
3,552
1,962
1,590
1,402
2,163
7,234
3,271
1,857
1,414
1,538
2,425
15 Revolving
16 Commercial banks
17 Retailers
18 Gasoline companies
87,596
38,256
34,723
14,617
105,125
51,333
37,775
16,017
120,174
61,048
41,121
18,005
10.341
4.771
3.723
1,847
10,679
5,059
3,718
1,902
10,700
4,989
3,770
1,941
11,143
5,067
4,111
1,965
11,124
5,264
3,851
2,009
10,953
5,155
3,774
2,024
11,614
5,554
3,999
2,061
19 Mobile home
20 Commercial banks
21 Finance companies
22
Savings and loans
23 Credit unions
5,712
3,466
644
1,406
196
5,412
3,697
886
609
220
6,471
4,542
797
948
184
424
281
54
87
2
377
226
52
95
4
415
263
56
78
18
442
250
84
95
13
513
257
89
159
8
424
243
93
74
14
479
254
89
119
17
88,651
29,811
28,683
17,216
7,460
3,572
1,909
99,150
34,434
33,146
19,352
6,796
3,115
2,307
104,231
35,589
37,771
17,345
6,555
4,953
2,018
6,034
2,025
2,357
609
463
431
149
6,873
2,042
2,657
1,104
430
487
153
7,661
2,249
2,875
1,497
493
376
171
7,961
2,641
2,921
1,284
485
444
186
8,184
2,665
2,938
1,407
440
536
198
7,497
2,482
2,596
1,379
476
370
194
7,822
2,405
2,671
1,480
498
539
229
1 Total
2
3
4
5
6
7
8
By major holder
Commercial banks
Finance companies
Credit unions
Retailers1
Savings and loans
Gasoline companies
Mutual savings banks
24 Other
25
Commercial banks
26 Finance companies
27
Credit unions
28
Retailers
29 Savings and loans
30 Mutual savings banks
Liquidations
222,138
254,589
286,396
24,394
25,196
25,687
26,009
26,663
25,152
25,530
99,251
36,040
27,592
39,529
3,669
14,485
1,572
118,792
41,075
31,382
42,074
3,717
15,760
1,789
136,572
47,498
32,741
45,544
4,574
17,496
1,971
11,675
3,695
2,616
4,118
422
1,723
145
11,847
4,370
2,575
4,059
427
1,770
148
11,789
4,768
2,620
4,103
449
1,805
153
11,936
4,742
2,716
4,140
446
1,875
154
12,313
4,869
2,809
4,157
449
1,911
155
11,552
4,258
2,577
4,198
458
1,952
157
11,760
4,325
2,657
4,181
468
1,978
161
By major type of credit
39 Automobile
40
Commercial banks
41
Indirect paper
42
Direct loans
43 Credit unions
44
Finance companies
60.437
36,407
19,842
16,565
13,755
10,275
69,245
42,036
22,871
19,165
15,438
11,771
79,186
46,697
25,135
21,562
16,353
16,136
6,576
3,822
2,091
1,731
1,343
1.411
6,785
3,854
2,113
1,741
1,305
1,626
7,045
3,950
2,152
1,798
1,355
1,740
7,434
4,075
2,317
1,758
1,445
1,914
7,343
4,139
2,305
1,834
1,439
1,765
6,872
3,690
2,006
1,684
1,301
1,881
6,932
3,762
2,038
1,724
1,364
1,806
45 Revolving
46
Commercial banks
47
Retailers
48 Gasoline companies
81,348
34,241
32,622
14,485
96,090
45,366
34,964
15,760
111,546
55,527
38,523
17,496
10,436
5,109
3,604
1.723
10,641
5,318
3,553
1,770
10,419
5,013
3,601
1,805
10,665
5,148
3,642
1,875
10,851
5,283
3,657
1,911
10,688
5,034
3,702
1,952
10,998
5,343
3,677
1,978
49 Mobile home
50 Commercial banks
51 Finance companies
52 Savings and loans
53 Credit unions
5,341
3,079
831
1,305
126
5,126
3,278
812
885
151
4,868
3,440
559
708
161
366
255
42
58
11
363
249
54
50
10
382
271
42
57
12
399
272
54
60
13
372
278
47
39
8
400
276
49
63
12
413
288
41
72
12
75,012
25,524
24,934
13,711
6,907
2,364
1,572
84,128
28,112
28,492
15,793
7,110
2,832
1,789
90,796
30,908
30,803
16,227
7,021
3,866
1,971
7,016
2,489
2,242
1,262
514
364
145
7,407
2,426
2,690
1,260
506
377
148
7,841
2,555
2,986
1,253
502
392
153
7,511
2,441
2,774
1,258
498
386
154
8,097
2,613
3,057
1,362
500
410
155
7,192
2,552
2,328
1,264
496
395
157
7,187
2,367
2,478
1,281
504
396
161
31 Total
32
33
34
35
36
37
38
By major holder
Commercial banks
Finance companies
Credit unions
Retailers1
Savings and loans
Gasoline companies
Mutual savings banks
54 Other
55 Commercial banks
56 Finance companies
57 Credit unions
58 Retailers
59 Savings and loans
60
Mutual savings banks
1. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
A42
1.58
DomesticNonfinancialStatistics • February 1981
F U N D S R A I S E D IN U . S . C R E D I T M A R K E T S
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1977
Transaction category, sector
1974
1975
1976
1977
1978
1978
1979
1980
1979
H2
HI
H2
HI
H2
HI
Nonfinancial sectors
1 Total funds raised
2 Excluding equities
By sector and instrument
3 U.S. government
4
Treasury securities
5
Agency issues and mortgages
6 All other nonfinancial sectors
7
Corporate equities
Debt instruments
8
9
Private domestic nonfinancial sectors
10
Corporate equities
11
Debt instruments
12
Debt capital instruments
13
State and local obligations
14
Corporate bonds
191.3
187.4
210.8
200.7
271.9
261.1
338.5
335.4
400.3
398.2
394.9
390.6
378.9
373.8
384.5
387.1
416.1
409.3
380.5
377.7
408.2
402.3
325.1
316.5
11.8
12.0
-.2
179.5
3.8
175.6
164.1
4.1
160.0
98.0
16.5
19.7
85.4
85.8
-.4
125.4
10.1
115.3
112.1
9.9
102.1
98.4
16.1
27.2
69.0
69.1
-.1
202.9
10.8
192.0
182.0
10.5
171.5
123.5
15.7
22.8
56.8
57.6
-.9
281.8
3.1
278.6
267.9
2.7
265.1
175.6
23.7
21.0
53.7
55.1
-1.4
346.6
2.1
344.5
314.4
2.6
311.8
196.6
28.3
20.1
37.4
38.8
-1.4
357.6
4.3
353.2
336.4
3.5
333.0
199.9
18.9
21.2
67.4
68.6
-1.2
311.5
5.1
306.4
294.2
4.9
289.3
192.5
25.0
25.4
61.4
62.3
-.9
323.1
-2.6
325.7
302.5
-1.8
304.3
188.0
27.8
20.6
46.0
47.9
-1.9
370.2
6.8
363.4
326.3
7.0
319.2
205.1
28.7
19.6
28.6
30.9
-2.3
351.9
2.8
349.1
338.6
2.8
335.8
198.8
16.0
22.4
46.1
46.6
-.5
362.1
5.9
356.2
333.0
4.1
328.9
201.1
21.8
19.9
62.8
63.4
-.6
262.3
8.6
253.7
234.2
6.3
227.8
168.1
17.8
33.3
39.5
96.4
7.4
18.4
8.8
89.5
40.6
27.0
2.9
19.0
104.5
10.2
23.3
10.2
115.2
50.6
37.3
5.2
22.2
109.1
8.9
25.7
16.2
133.0
44.2
50.6
10.9
27.3
103.1
8.4
21.9
8.7
96.7
44.5
26.7
2.4
23.2
99.8
9.3
21.2
9.3
116.3
50.1
43.1
5.3
17.8
109.2
11.2
25.4
11.1
114.1
51.0
31.4
5.1
26.5
109.8
8.1
26.0
16.6
137.0
48.3
48.2
12.0
28.4
108.5
9.7
25.4
15.9
127.8
39.0
52.9
9.7
26.2
72.3
7.2
20.9
16.6
59.7
-9.2
17.8
29.7
21.3
15
16
17
18
19
20
21
22
23
Home
Multifamily residential
Commercial
Farm
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
34.8
6.9
15.1
5.0
62.0
9.9
31.7
6.6
13.7
4.6
3.8
9.7
-12.3
-2.6
9.0
63.7
1.8
13.4
6.1
48.0
25.6
4.0
4.0
14.4
24
25
26
27
28
29
By borrowing sector
State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
164.1
15.5
51.2
8.0
7.7
81.7
112.1
13.7
49.5
8.8
2.0
38.1
182.0
15.2
90.7
10.9
5.4
59.8
267.9
20.4
139.9
14.7
12.5
80.3
314.4
23.6
162.6
18.1
15.4
94.7
336.4
15.5
165.0
25.8
15.8
114.3
294.2
25.0
150.4
13.8
12.5
92.4
302.5
21.0
156.1
15.3
16.3
93.7
326.3
26.1
169.1
20.8
14.5
95.8
338.6
13.0
168.1
23.5
15.3
118.7
333.0
18.0
161.0
28.1
16.0
109.8
234.2
16.0
91.4
23.6
9.2
94.1
15.4
-.2
15.7
2.1
4.7
7.3
1.6
13.3
.2
13.2
6.2
3.9
.3
2.8
20.8
.3
20.5
8.6
6.8
1.9
3.3
13.9
.4
13.5
5.1
3.1
2.4
3.0
32.3
-.5
32.8
4.0
18.3
6.6
3.9
21.1
.9
20.3
3.9
2.3
11.2
3.0
17.3
.2
17.1
5.7
6.5
2.2
2.9
20.6
-.8
21.4
5.0
9.3
3.6
3.6
43.9
-.2
44.1
3.0
27.3
9.6
4.2
13.3
13.3
3.0
1.0
6.1
3.1
29.1
1.7
27.3
4.7
3.5
16.3
2.8
28.1
2.2
25.9
2.0
2.7
15.7
5.5
30
31
32
33
34
35
36
Foreign
Corporate equities
Debt instruments
Bonds
Bank loans n.e.c
Open market paper
U.S. government loans
*
11.0
*
Financial sectors
37 Total funds raised
38
39
40
41
42
43
44
45
46
47
48
49
By instrument
U.S. government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. government
Private financial sectors
Corporate equities
Debt instruments
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper and repurchase
agreements
Loans from Federal Home Loan Banks
By sector
50 Sponsored credit agencies
51 Mortgage pools
52 Private financial sectors
53 Commercial banks
54 Bank affiliates
55
Savings and loan associations
56
Other insurance companies
57 Finance companies
58
REITs
59
Open-end investment companies
39.2
12.7
24.1
54.0
81.4
87.4
60.3
80.7
82.1
87.0
87.8
59.2
23.1
16.6
5.8
.7
16.2
.3
15.9
2.1
-1.3
4.6
13.5
2.3
10.3
.9
-.8
.6
-1.4
2.9
2.3
-3.7
18.6
3.3
15.7
-.4
5.5
1.0
4.4
5.8
2.1
-3.7
26.3
7.0
20.5
-1.2
27.7
.9
26.9
10.1
3.1
-.3
41.4
23.1
18.3
0
40.0
1.7
38.3
7.5
.9
2.8
52.4
24.3
28.1
0
35.0
1.2
33.8
7.8
-1.2
-.4
29.9
6.8
23.1
0
30.4
.8
29.6
10.1
3.0
1.2
38.5
21.9
16.6
0
42.2
2.2
40.0
8.5
2.1
2.5
44.3
24.3
20.1
0
37.8
1.1
36.7
6.4
-.3
3.1
45.8
21.5
24.2
0
41.2
2.8
38.4
8.7
-.5
-.7
59.0
27.0
32.0
28.8
-.4
29.2
7.0
-1.9
-.2
45.8
25.1
20.7
0
13.3
8.5
4.8
10.7
-6.7
.3
3.8
6.7
1.1
-4.0
2.2
-2.0
9.6
4.3
14.6
12.5
18.4
9.2
9.5
5.8
13.5
13.2
15.7
11.8
23.0
7.8
13.8
10.5
-3.5
4.1
17.3
5.8
16.2
1.2
3.5
4.8
.9
6.0
.6
-.7
3.2
10.3
-.8
1.2
.3
-2.3
1.0
.5
-1.4
-.1
2.6
15.7
5.5
2.3
-.8
.1
.9
6.4
-2.4
-1.0
5.8
20.5
27.7
1.1
1.3
9.9
.9
17.6
-2.2
-.9
23.1
18.3
40.0
1.3
6.7
14.3
1.1
18.6
-1.0
-1.0
24.3
28.1
35.0
1.6
4.5
11.4
1.0
18.9
-.4
-2.1
6.8
23.1
30.4
1.5
1.2
11.5
1.0
18.5
-2.0
-1.3
21.9
16.6
42.2
1.5
5.8
16.4
1.0
18.9
-1.0
-.5
24.3
20.1
37.8
1.1
7.6
12.2
1.1
18.2
-1.0
-1.5
21.5
24.2
41.2
1.3
6.2
9.9
1.0
23.5
-.6
-.3
27.0
32.0
28.8
1.8
2.9
12.9
.9
14.3
-.1
-3.9
25.1
20.7
13.3
2.3
4.5
-4.6
.8
5.5
-.9
5.7
0
All sectors
60 Total funds raised, by instrument
230.5
223.5
296.0
392.5
481.7
482.3
439.2
465.2
498.3
467.4
496.0
384.2
61 Investment company shares
62 Other corporate equities
63 Debt instruments
64
U.S. government securities
65 State and local obligations
66
Corporate and foreign bonds
67 Mortgages
68 Consumer credit
69 Bank loans n.e.c
70 Open market paper and RPs
71 Other loans
-.7
4.8
226.4
34.3
16.5
23.9
60.5
9.9
41.0
17.7
22.7
-.1
10.8
212.8
98.2
16.1
36.4
57.2
9.7
-12.2
-1.2
8.7
-1.0
12.9
284.1
88.1
15.7
37.2
87.1
25.6
7.0
8.1
15.3
-.9
4.9
388.5
84.3
23.7
36.1
134.0
40.6
29.8
15.0
25.2
-1.0
4.7
478.0
95.2
28.3
31.6
149.0
50.6
58.4
26.4
38.6
-2.1
7.6
476.8
89.9
18.9
32.9
158.6
44.2
52.5
40.5
39.5
-1.3
7.2
433.3
97.4
25.0
41.1
145.1
44.5
34.4
14.0
31.8
-.5
.1
465.5
100.0
27.8
34.2
141.6
50.1
54.9
22.4
34.6
-1.5
9.4
490.4
90.4
28.7
29.1
156.4
51.0
61.8
30.4
42.5
-.3
5.8
461.9
74.5
16.0
34.1
159.8
48.3
48.6
41.1
39.4
-3.9
9.3
490.5
105.2
21.8
31.5
157.4
39.0
56.2
39.8
39.5
5.7
11.4
367.2
108.8
17.8
45.9
110.2
-9.2
20.9
41.9
30.8
Flow of Funds
1.59
A43
DIRECT A N D INDIRECT SOURCES OF F U N D S TO CREDIT MARKETS
Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates
1977
Transaction category, or sector
1 Total funds advanced in credit markets to nonfinancial
sectors
1974
1975
1977
1976
1978
1980
1979
1978
1979
H2
HI
H2
HI
H2
HI
187.4
200.7
261.1
355.4
398.2
390.6
373.8
387.1
409.3
377.7
402.3
316.5
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to savings and loans
Other loans and securities
53.7
11.9
14.7
6.7
20.5
44.6
22.5
16.2
-4.0
9.8
54.3
26.8
12.8
-2.0
16.6
85.1
40.2
20.4
4.3
20.2
109.7
43.9
26.5
12.5
26.9
80.1
2.0
36.1
9.2
32.8
104.2
53.3
22.0
5.8
23.1
102.8
43.7
22.2
13.2
23.7
116.6
44.0
30.7
11.8
30.1
47.6
-22.1
32.6
7.8
29.2
112.5
26.2
39.6
10.5
36.3
104.7
24.8
33.5
4.1
42.3
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
Agency borrowing not included in line 1
9.8
26.5
6.2
11.2
23.1
15.1
14.8
8.5
6.1
13.5
8.9
20.3
9.8
15.2
18.6
11.8
26.8
7.1
39.4
26.3
20.4
44.6
7.0
37.7
41.4
22.5
57.5
7.7
-7.7
52.4
17.8
32.0
4.0
50.4
29.9
19.4
39.4
13.4
30.6
38.5
21.4
49.8
.5
44.9
44.3
23.8
49.9
.9
-27.0
45.8
21.3
65.2
14.5
11.7
59.0
32.2
44.0
14.3
14.2
45.8
Private domestic funds advanced
1? Total net advances
13 U.S. government securities
14 State and local obligations
15 Corporate and foreign bonds
16 Residential mortgages
17 Other mortgages and loans
18 LESS: Federal Home Loan Bank advances
156.8
22.4
16.5
20.9
26.9
76.8
6.7
169.7
75.7
16.1
32.8
23.2
17.9
-4.0
225.4
61.3
15.7
30.5
52.7
63.3
-2.0
276.5
44.1
23.7
22.5
83.3
107.3
4.3
330.0
51.3
28.3
22.5
88.2
152.2
12.5
362.9
87.9
18.9
25.6
81.8
157.9
9.2
299.6
44.1
25.0
27.0
89.4
119.7
5.8
322.8
56.3
27.8
24.1
86.7
141.1
13.2
337.1
46.4
28.7
20.9
89.6
163.3
11.8
375.9
96.6
16.0
26.9
85.1
159.1
7.8
348.8
79.1
21.8
24.3
78.5
155.6
10.5
257.7
83.9
17.8
31.5
45.9
82.6
4.1
Private financial intermediation
19 Credit market funds advanced by private financial
institutions
20 Commercial banking
21 Savings institutions
22 Insurance and pension funds
23 Other finance
125.5
66.6
24.2
29.8
4.8
122.5
29.4
53.5
40.6
-1.0
190.3
59.6
70.8
49.9
10.0
255.9
87.6
82.0
67.9
18.4
296.9
128.7
75.9
73.5
18.7
291.4
121.1
56.3
70.4
43.6
265.0
90.7
82.6
70.6
21.2
301.7
132.5
75.8
76.9
16.6
292.0
125.0
75.9
70.2
20.8
308.2
124.6
57.7
75.4
50.6
274.5
117.6
54.9
65.5
36.6
231.3
57.3
28.8
84.6
60.7
24 Sources of funds
25 Private domestic deposits
26 Credit market borrowing
27 Other sources
Foreign funds
28
Treasury balances
29
Insurance and pension reserves
30
Other, net
31
125.5
67.5
15.9
42.1
10.3
-5.1
26.2
10.6
122.5
92.0
-1.4
32.0
-8.7
-1.7
29.7
12.7
190.3
124.6
4.4
61.3
-4.6
-.1
34.5
31.4
255.9
141.2
26.9
87.8
1.2
4.3
49.4
32.9
296.9
142.5
38.3
116.0
6.3
6.8
62.7
40.3
291.4
136.7
33.8
120.9
26.3
.4
49.0
45.2
265.0
143.8
29.6
91.7
.8
8.5
53.4
29.0
301.7
138.3
40.0
123.5
5.7
1.9
66.2
49.6
292.0
146.7
36.7
108.6
6.9
11.6
59.2
31.0
308.2
121.7
38.4
148.1
49.4
5.1
53.9
39.6
274.5
151.6
29.2
93.7
3.2
-4.3
44.0
50.8
231.3
149.7
4.8
76.8
-16.5
-2.0
59.8
35.4
Private domestic nonfinancial investors
32 Direct lending in credit markets
33 U.S. government securities
34
State and local obligations
35 Corporate and foreign bonds
36 Commercial paper
37 Other
47.2
18.9
9.3
5.1
5.8
8.0
45.8
24.1
8.4
8.4
-1.3
6.2
39.5
16.1
3.8
5.8
1.9
11.8
47.5
23.0
2.6
-3.3
9.5
15.7
71.4
33.2
4.5
-1.4
16.3
18.7
105.4
57.8
-2.5
12.2
10.7
27.1
64.1
34.2
5.7
-6.5
10.8
19.9
61.1
32.1
7.0
-3.7
8.2
17.5
81.7
34.4
2.0
1.0
24.4
20.0
106.1
64.1
-2.3
7.1
12.5
24.7
103.5
51.5
-2.7
17.2
9.0
28.5
31.2
14.6
-3.4
5.3
-8.0
22.6
38 Deposits and currency
39 Security RPs
40 Money market fund shares
41 Time and savings accounts
Large at commercial banks
42
Other at commercial banks
43
44
At savings institutions
45 Money
Demand deposits
46
47
Currency
73.8
-2.2
2.4
65.4
32.4
11.3
21.8
8.2
1.9
6.3
98.1
.2
1.3
84.0
-15.8
40.3
59.4
12.6
6.4
6.2
131.9
2.3
113.5
-13.2
57.6
69.1
16.1
8.8
7.3
149.5
2.2
.2
121.0
23.0
29.0
69.0
26.1
17.8
8.3
151.8
7.5
6.9
115.2
45.9
8.2
61.1
22.2
12.9
9.3
144.7
6.6
34.4
84.7
.4
39.3
45.1
18.9
148.7
9.8
6.1
110.7
33.9
18.4
58.5
22.1
11.6
10.5
154.8
5.1
7.7
119.8
57.9
-1.9
63.8
22.3
14.2
8.1
131.1
18.5
30.2
71.4
-25.3
41.3
55.4
10.9
1.6
9.3
158.1
-5.3
38.6
97.9
26.0
37.3
34.7
26.8
20.3
6.5
158.7
5.3
61.9
91.6
7.9
154.5
.2
.9
126.7
49.6
11.4
65.7
26.8
16.1
10.8
48 Total of credit market instruments, deposits and
currency
121.0
143.9
171.4
197.0
223.2
250.0
218.6
209.8
236.6
237.1
261.6
189.9
Public support rate (in percent)
Private financial intermediation (in percent)
Total foreign funds
28.7
80.0
21.5
22.2
72.2
-2.6
20.8
84.4
10.6
25.4
92.5
40.5
27.5
90.0
44.0
20.5
80.3
18.6
27.9
88.5
51.2
26.5
93.5
36.3
28.5
86.6
51.8
12.6
82.0
22.4
28.0
78.7
14.9
33.1
89.8
-2.2
MEMO: Corporate equities not included above
52 Total net issues
53 Mutual fund shares
54 Other equities
4.1
-.7
4.8
10.7
-.1
10.8
11.9
-1.0
12.9
4.0
-.9
4.9
3.7
-1.0
4.7
5.5
-2.1
7.6
5.9
-1.3
7.2
-.4
-.5
.1
7.9
-1.5
9.4
5.5
-.3
5.8
5.4
-3.9
9.3
17.0
5.7
11.4
5.8
-1.7
9.6
1.1
12.3
-.4
7.4
-3.4
7.6
-3.8
15.7
-10.2
8.1
-2.2
.4
-.8
14.7
-6.8
12.5
-7.0
18.9
-13.5
16.7
.3
7
3
4
5
6
7
8
9
10
11
49
50
51
55 Acquisitions by financial institutions
56 Other net purchases
*
NOTES BY LINE NUMBER.
1.
2.
6.
11.
12.
17.
25.
26.
28.
29.
Line 2 of p. A42.
Sum of lines 3-6 or 7-10.
Includes farm and commercial mortgages.
Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities. Included below in lines
3, 13, 33.
Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. Also sum
of lines 27, 32, 39, 40, 41, and 46.
Includes farm and commercial mortgages.
Sum of lines 39, 40, 41, and 46.
Excludes equity issues and investment company shares. Includes line 18.
Foreign deposits at commercial banks, bank borrowings from foreign branches,
and liabilities of foreign banking agencies to foreign affiliates.
Demand deposits at commercial banks.
11.0
-11.0
60.8
41.8
-.1
-9.2
9.0
30. Excludes net investment of these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 12 less line 19 plus line 26.
33-37. Lines 13-17 less amounts acquired by private finance. Line 37 includes
mortgages.
47. Mainly an offset to line 9.
48. Lines 32 plus 38, or line 12 less line 27 plus 45.
49. Line 2/line 1.
50. Line 19/line 12.
51. Sum of lines 10 and 28.
52. 54. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types quarterly, and annually
for flows and for amounts outstanding, may be obtained from Flow of Funds
Section, Division of Research and Statistics, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.
A44
2.10
Domestic Nonfinancial Statistics • February 1981
NONFINANCIAL BUSINESS ACTIVITY
Selected Measures
1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1980
Measure
1 Industrial production 1
2
3
4
5
6
7
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
Industry groupings
8 Manufacturing
Capacity utilization (percent) 1 - 2
9
Manufacturing
10 Industrial materials industries
1978
1979
1981
1980
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.?
Jan/
146.1
152.5
147.1
144.0
141.5
140.4
141.8
141.1
146.9'
149.4'
150.9
151.8
144.8
135.9
149.1
132.8
154.1
148.3
150.0
147.2
150.8
142.2
160.5
156.4
146.7
145.3
145.5
145.1
151.9
147.7
143.7
142.3
142.4
144.0
146.2
144.3
142.5
142.4
142.1
142.6
143.5
140.0
142.8
142.8
142.0
142.9
144.4
136.5
143.8
143.9
142.7
142.9
147.6
138.6
145.3
143.9
144.3
143.2
150.6
142.4
147.2'
145.8'
146.6
144.8'
152.4
146.4
148.7
147.4'
147.9'
146.8'
153.6'
150.4'
149.8
148.1
147.9
148.3
156.2
152.7
150.5
148.6
147.8
149.7
157.5
153.8
146.8
153.6
146.6
143.4
140.3
139.1
140.6
143.4
146.4
149.1'
150.4
151.1
84.4
85.6
85.7
87.4
79.0
79.8
77.6
78.3
75.7
75.7
74.9
73.7
75.5
74.6
76.7
76.4
79.4'
80.3'
79.8
81.3
80.0
81.7
78.2'
78.4
11 Construction contracts (1972 = 100)3
174.1''
185.6'
161.8
125.0
145.0
148.0
192.0
163.0
167.0
210.0
193.0
n.a.
12 Nonagricultural employment, total 4
13 Goods-producing, total
14
Manufacturing, total
15
Manufacturing, production-worker
16 Service-producing
17 Personal income, total
18 Wages and salary disbursements
19
Manufacturing
20 Disposable personal income 5
131.8'
109.8
105.4'
103.0'
143.8'
273.3'
258.8'
223.1'
268.7
136.6'
113.7'
108.3'
105.4'
149.2'
308.5'
289.5'
248.6'
301.5
137.8
110.9
104.7
n.a.
152.5
342.9
314.7
261.5
334.5
137.5
110.5
104.3
99.1
152.3
335.6'
309.2'
255.5'
327.7
136.8
109.1
102.9
97.4
152.1
337.6'
309.9'
254.2'
136.6
108.0
102.0
96.2
152.3
343.0'
310.6'
254.3'
137.0
108.6
102.5
97.0
152.6
345.9'
314.4'
258.5'
338.0
137.4
109.3
103.1
97.7
152.7
350.1'
317.8'
262.9'
137.9
110.0
103.7
100.7
153.1
354.8'
323.6'
267.6'
138.2
110.7
104.3
99.1
153.3'
358.8
327.9
273.1
348.8
139.2
104.6
99.3
153.5
362.1
330.9
277
139.0
111.8
104.7
99.€
154.0
n.a.
n.a.
n.a.
21 Retail sales6
253.8
281.6
299.3
285.0
290.4
299.1
301.0
306.0
308.0
313.1
308.9
321.0
Prices7
22
Consumer
23
Producer finished goods
195.4
194.6
217.4
216.1
n.a.
n.a.
244.9
241.6
247.6
243.0
247.8
246.6
249.4
249.0
251.7
248.9
253.9
252.2
256.2
235.2
258.4
254.7
n.a.
n.a.
1. The industrial production and capacity utilization series have been revised
back to January 1979.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, and Department of Commerce.
3. Index of dollar value of total construction contracts, including residential,
nonresidential, and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
5. Based on data in Survey of Current Business (U.S. Department of Commerce).
Series for disposable income is quarterly.
2.11
111.1
6. Based on Bureau of Census data published in Survey of Current Business.
7. Data without seasonal adjustment, as published in Monthly Labor Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5, and
6, and indexes for series mentioned in notes 3 and 7 may also be found in the
Survey of Current Business.
Figures for industrial production for the last two months are preliminary and
estimated, respectively.
OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION
Seasonally adjusted
1980
1980
1980
Series
Q1
Q2
Q3
04'
Output (1967 = 100)
01
02
03
Capacity (percent of 1967 output)
1 Manufacturing
2 Primary processing
3 Advanced processing
152.8
160.5
148.8
143.9
145.0
143.3
141.0
139.6
141.8
148.6
153.1
146.4
183.3
188.5
180.5
184.8
190.0
182.0
186.3
191.5
183.5
4 Materials
156.3
145.1
139.2
149.8
182.8
184.3
155.0
117.1
179.3
187.5
120.6
146.1
233.6
130.8
140.6
100.6
166.0
171.9
116.4
142.1
208.3
130.0
131.5
86.6
161.9
165.6
113.4
142.9
197.9
129.6
145.1
109.9
175.1
182.4
113.9
149.3
226.1
129.9
187.2
140.7
199.8
208.3
138.8
154.7
260.4
151.1
188.6
140.8
202.0
211.0
139.2
156.0
264.6
151.8
5 Durable goods
6
Metal materials
7 Nondurable goods
8 Textile, paper, and chemical
9
Textile
10
Paper
11
Chemical
12 Energy materials
Q4
02
01
Q3
Q4'
Utilization rate (percent)
187.8
193.0
185.0
83.4
85.1
82.5
185.8
187.2
190.0
140.9
204.3
213.7
139.6
157.4
268.7
152.6
191.5
141.0
206.5
216.2
140.0
158.8
272.9
153.1
77.9
76.3
78.7
75.7
72.9
77.3
79.1
79.3
79.1
85.5
78.7
74.9
80.0
82.8
83.2
89.7
90.0
86.9
94.5
89.7
86.6
74.6
71.4
82.2
81.5
83.7
91.0
78.7
85.6
69.2
61.5
79.2
77.5
81.2
90.7
73.6
85.0
75.8
77.9
84.8
84.4
81.3
94.0
82.9
84.8
Labor Market
2.11
A45
Continued
Previous cycle1
Latest cycle2
1980
1980
1981
Series
High
Low
High
Low
Jan.
July
Aug.
Sept.
Oct.
Nov.'
Dec.'
Jan.
Capacity utilization rate (percent)
13 Manufacturing
88.0
69.0
87.2
74.9
83.9
74.9
75.5
76.7
78.2'
79.4
79.8
80.0
14
15
93.8
85.5
68.2
69.4
90.1
86.2
70.9
77.1
86.4
82.7
70.9
77.1
72.5
77.1
75.2
77.7
77.6
78.5
79.7
79.2
80.7
79.5
80.9
79.7
16 Materials
17 Durable goods
18
Metal materials
92.6
91.5
98.3
69.4
63.6
68.6
88.8
88.4
96.0
73.7
68.0
58.4
86.1
83.6
84.1
73.7
68.0
58.4
74.6
69.1
62.2
76.4
70.4
63.9
78.4
73.5'
71.5
80.3
76.5
81.2
81.3
77.4
81.2
81.7
77.9
80.1
19
20
21
22
23
Nondurable goods
Textile, paper, and chemical
Textile
Paper
Chemical
94.5
95.1
92.6
99.4
95.5
67.2
65.3
57.9
72.4
64.2
90.9
91.4
90.1
97.6
91.2
76.8
74.5
79.5
88.1
69.6
90.9
91.2
86.6
96.0
91.2
76.8
74.5
82.0
88.1
69.6
78.2
76.4
79.5
90.2
72.5
82.7
81.6
82.0
93.9
78.7
84.4
83.8
82.1'
93.0'
82.1
84.4
83.9
81.4
93.8
82.1
85.6
85.5
80.4
95.1
84.4
85.7
85.5
80.6
91.8
85.1
24
Energy materials
94.6
84.8
88.3'
83.1'
86.2
85.6
85.2
84.1
83.1'
85.2
86.0
86.5
Primary processing
Advanced processing
1. Monthly high 1973; monthly low 1975.
2. Preliminary; monthly highs December 1978 through January 1980; monthly
lows July 1980 through October 1980.
2.12
LABOR FORCE, EMPLOYMENT, A N D UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1980
Category
1978
1979
1981
1980
July
Aug.
Sept.
Oct.
Nov.'
Dec.'
Jan.
HOUSEHOLD SURVEY DATA
1
Noninstitutional population 1
2 Labor force (including Armed Forces) 1 ..
3
Civilian labor force
Employment
4
Nonagricultural industries 2
5
Agriculture
Unemployment
6
Number
7
Rate (percent of civilian labor force)
8 Not in labor force
161,058
163,620
166,246
166,391
166,578
166,789
167,005
167,201
167,396
167,585
102,537
100,420
104,996
102,908
106,821
104,719
107,119'
105,020'
107,059'
104,945'
107,101'
104,980'
107,288'
105,167'
107,404
105,285
107,191
105,067
107.668
105,543
91,031
3,342
93,648
3,297
93,960
3,310
93,732'
3,267'
93,793'
3,210'
93,781'
3,399'
93,887'
3,319'
93,999
3,340
93,888
3,394
94,294
3,403
6,047
6.0
58,521
5,963
5.8
58,623
7,448
7.1
59,425
8,021'
7.6'
59,273'
7,942'
7.6
59,519'
7,800'
7.4'
59,687'
7,961'
7.6
59,717'
7,946
7.5
59,797
7,785
7.4
60,205
7,847
7.4
59,917
86,697'
89,886'
90,652
89,867
90,142
90,384
90,710
90,961
91,116
91,490
20,505'
851
4,229'
4,923'
19,542'
4,724'
16,252'
15,672'
21,062'
960'
4,483'
5,141'
20,269'
4,974'
17,078'
15,920'
20,365
1,025
4,468
5,155
20,571
5,162
17,736
16,171
19,828
1,013
4,322
5,114
20,506
5,167
17,760
16,157
19,940
1,013
4,359
5,129
20,589
5,180
17,788
16,144
20,044
1,028
4,404
5,124
20,620
5,194
17,861
16,109
20,157
1,037
4,442
5,147
20,641
5,214
17,913
16,159
20,282
1,054
4,475
5,132
20,660
5,225
17,969
16,164
20,328
1,069
4,507
5,130
20,638
5,243
18,052
16,149
20,357
1,082
4,612
5,149
20,757
5,265
18,123
16,145
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment 3
10
11
12
13
14
15
16
17
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
1. Persons 16 years of age and over. Monthly figures, which are based on sample
data, relate to the calendar week that contains the 12th day; annual data are
averages of monthly figures. By definition, seasonality does not exist in population
figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family workers, and members of the Armed Forces. Data are adjusted to the March 1979
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A46
2.13
Domestic Nonfinancial Statistics • February 1981
INDUSTRIAL PRODUCTION
Indexes and Gross Value'
Monthly data are seasonally adjusted.
Grouping
1967
proportion
1981
1980
AverJan.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Index (1967 = 100)
MAJOR MARKET
1 Total index
147.1
152.7
152.1
144.0
141.5
140.4
141.8
144.1
146.9
149.4
2 Products
3
Final products
4
Consumer goods
5
Equipment
6
Intermediate products
7 Materials
146.7
145.3
145.5
145.1
151.9
147.7
149.9
147.0
147.9
145.8
160.8
157.0
150.0
147.7
148.6
146.6
158.3
155.3
146.6
145.4
145.3
145.6
150.8
151.0
143.7
143.1
142.4
144.0
146.2
144.3
142.5
142.3
142.1
142.6
143.5
140.0
142.8
142.4
142.0
142.9
144.5
136.5
143.8
142.8
142.7
142.9
147.6
138.6
145.3
143.9
144.3
143.2
150.6
142.4
147.2
145.8
146.6
144.8
152.4
146.4
148.7
147.4
147.9
146.8
153.6
150.4
Consumer goods
8 Durable consumer goods
9
Automotive products
10
Autos and utility vehicles
11
Autos
12
Auto parts and allied goods
136.5
132.6
109.9
103.4
190.3
142.3
131.3
108.7
98.0
188.5
144.1
141.0
122.0
114.9
189.1
136.3
126.3
102.3
97.1
187.2
128.8
118.5
92.6
88.4
184.0
128.2
97.1
95.7
183.7
128.3
129.2
106.4
105.2
186.9
128.6
121.5
94.1
91.3
191.1
132.7
130.6
105.5
98.0
194.2
139.6
141.8
120.2
110.7
196.8
142.9
145.3
124.3
114.3
198.6
13
14
15
16
17
Home goods
Appliances, A/C, and TV
Appliances and TV
Carpeting and furniture
Miscellaneous home goods
138.7
117.3
119.6
154.9
143.6
148.5
128.9
130.0
170.9
149.8
145.8
122.1
125.0
169.1
149.0
142.0
114.8
117.5
165.8
146.8
134.6
102.8
106.0
154.2
143.8
132.0
105.6
108.5
146.7
140.2
127.7
102.3
103.4
136.1
138.1
132.6
114.2
114.2
141.1
139.1
134.0
116.3
117.6
146.1
138.6
138.3
123.5
125.6
150.2
141.5
141.5
128.4
131.0
154.9
143.0
18 Nondurable consumer goods
19
Clothing
20
Consumer staples
21
Consumer foods and tobacco
22
Nonfood staples
23
Consumer chemical products
24
Consumer paper products
25
Consumer energy products
26
Residential utilities
149.2
126.8
155.3
146.9
165.1
208.8
122.9
152.3
171.7
150.1
130.2
155.6
146.9
165.8
210.5
124.1
151.5
161.9
150.3
131.8
155.5
147.3
165.0
208.9
121.6
152.7
169.6
148.8
128.7
154.5
146.2
164.0
206.9
120.4
152.8
172.5
147.7
127.9
153.2
146.1
161.5
203.0
120.2
150.1
169.8
147.6
126.7
153.4
146.2
161.7
202.6
120.6
150.9
170.1
147.4
122.5
154.3
146.4
163.6
204.3
121.5
153.5
176.5
148.3
123.6
155.1
146.0
165.7
209.3
122.0
153.9
178.6
148.9
122.1
156.3
147.0
167.1
213.0
122.3
154.0
178.3
149.4
125.1
156.1
147.7
165.9
210.2
124.8
151.5
175.0
149.9
127.0
156.3
147.4
166.5
210.0
127.3
151.7
171.8
Equipment
27 Business
28
Industrial
29
Building and mining
30
Manufacturing
31
Power
173.2
156.9
241.0
128.2
149.3
174.9
157.2
222.1
132.6
157.9
176.1
159.3
235.6
133.1
153.2
174.2
159.3
239.5
131.9
152.3
171.9
157.8
242.2
129.5
149.1
169.8
155.2
241.0
126.1
147.1
170.1
154.8
244.4
126.0
142.0
170.3
154.5
243.6
124.4
145.9
170.5
154.2
243.4
123.9
146.1
172.3
154.4
244.3
123.9
146.1
174.6
157.2
250.1
126.0
147.8
32
33
34
35
192.0
237.3
139.4
123.3
195.2
238.2
142.8
137.1
195.5
240.4
142.5
129.7
191.5
235.6
143.0
116.4
188.2
232.0
136.3
124.6
186.7
228.8
138.0
121.6
187.8
229.0
140.9
122.5
188.4
233.6
138.4
112.7
189.4
237.2
133.8
116.8
192.8
242.0
135.0
120.2
194.7
244.0
136.6
121.9
97.8
97.0
97.1
97.6
97.2
96.8
97.2
96.9
97.4
'8.5
100.0
140.8
156.4
165.1
172.4
152.3
164.3
174.1
139.4
162.0
174.8
133.0
159.4
172.0
128.5
158.4
168.7
128.6
173.4
160.4
172.1
133.1
161.9
173.7
137.4
163.6
175.2
140.5
164.3
174.6
142.8
164.3
174.6
Materials
40 Durable goods materials
41
Durable consumer parts
42
Equipment parts
43
Durable materials n.e.c
44
Basic metal materials
143.1
109.1
187.3
135.0
104.6
156.0
120.8
199.8
148.5
118.8
154.2
120.3
199.2
145.5
116.6
148.2
110.6
195.8
139.8
109.3
139.8
100.1
190.8
130.5
100.0
133.8
96.0
182.5
125.0
95.9
129.0
93.9
177.6
118.9
84.7
131.3
98.1
176.3
122.4
89.4
134.2
104.2
176.0
125.4
91.7
140.4
102.0
146.4
115.5
184.0
140.4
114.0
45 Nondurable goods materials
46
Textile, paper, and chemical materials .
47
Textile materials
48
Paper materials
49
Chemical materials
50
Containers, nondurable
51
Nondurable materials n.e.c
170.6
176.9
116.2
145.2
216.5
165.0
136.8
181.0
189.3
120.1
148.2
236.3
172.7
137.5
177.0
185.2
120.7
144.2
230.1
167.1
137.4
173.2
180.7
117.7
141.2
224.3
166.8
133.0
165.2
171.5
117.6
141.7
207.3
155.8
136.4
159.6
163.4
114.0
143.4
193.3
157.7
136.8
156.2
158.5
114.4
138.4
186.1
159.0
136.6
159.8
163.2
142.0
194.9
158.8
137.9
169.7
175.1
114.7
148.2
212.6
167.2
137.2
173.7
180.5
114.9
147.3
222.9
168.6
135.7
174.3
181.3
114.0
149.0
224.0
166.9
138.2
52 Energy materials
53
Primary energy
54
Converted fuel materials
130.2
115.1
148.5
130.0
114.4
149.0
130.9
115.6
149.6
130.1
116.4
146.9
129.6
116.2
145.8
130.4
117.3
146.4
130.4
115.6
148.4
130.0
114.0
149.4
128.4
114.3
145.4
127.2
113.7
143.6
130.4
114.0
150.5
Supplementary groups
55 Home goods and clothing
56 Energy, total
57
Products
58
Materials
133.2
138.9
158.7
130.2
140.1
138.6
157.8
130.0
139.4
139.6
159.1
130.9
135.9
139.1
159.5
130.1
131.5
137.9
156.7
129.6
129.5
138.4
156.3
130.4
125.3
139.2
159.1
130.4
128.5
139.2
159.9
130.0
128.5
138.2
160.5
128.4
132.2
136.8
158.5
127.2
134.8
139.1
158.6
130.4
Commercial transit, farm
Commercial
Transit
Farm
36 Defense and space
Intermediate products
37 Construction supplies
38 Business supplies
39
Commercial energy products
For notes see opposite page.
162.8
121.6
111.0
110.8
178.5
133.4
Dec .P
Output
2.13
A47
Continued
Grouping
SIC
code
1967
proportion
1981
1980
1980
Avg.
Jan.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.P
Jan/
Index (1967 = 100)
MAJOR INDUSTRY
1 Mining and utilities
2
Mining
3
Utilities
4
Electric
5 Manufacturing
6
Nondurable
7
Durable
12.05
6.36
5.69
3.88
87.95
35.97
51.98
150.5
132.7
170.3
190.2
146.6
161.1
136.6
148.2
133.5
164.8
183.4
153.4
166.0
144.7
151.4
133.0
172.0
192.4
152.1
164.7
143.4
150.1
133.1
169.1
187.9
147.9
161.6
138.4
149.6
133.4
167.7
186.0
143.4
158.0
133.3
150.1
132.9
169.3
188.7
140.3
155.3
129.9
150.1
130.6
171.8
192.4
139.2
154.7
128.3
150.5
129.6
173.8
195.4
140.6
156.9
129.4
150.5
130.5
172.7
193.9
143.4
160.3
131.7
150.2
132.1
170.4
190.3
146.4
161.8
135.8
152.3
135.4
171.3
191.4
149.1
163.3
139.3
154.7
137.7
173.6
156.4
139.4
175.3
150.4
164.9
140.4
151.1
165.7
141.1
153.8
140.0
8
9
10
11
Mining
Metal
Coal
Oil and gas extraction
Stone and earth minerals
10
11.12
13
14
.51
.69
4.40
.75
108.6
146.7
133.6
131.4
137.6
141.0
129.9
144.6
132.7
137.2
131.8
136.0
123.5
143.4
132.5
133.1
120.8
145.0
133.9
128.1
120.0
150.0
133.2
123.9
83.1
149.8
134.3
123.7
71.2
154.9
133.6
123.5
73.1
148.9
134.7
128.2
90.8
145.7
135.4
129.0
107.2
151.6
136.8
131.5
115.0
158.3
137.5
135.5
12
13
14
15
16
Nondurable manufactures
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
20
21
22
23
26
8.75
.67
2.68
3.31
3.21
149.1
120.1
136.8
129.0
151.0
148.5
118.7
143.4
131.5
157.4
149.3
122.2
142.0
136.1
152.7
147.8
121.9
139.9
131.3
148.2
149.5
116.2
137.1
128.6
145.7
149.0
113.9
133.6
127.2
146.2
148.9
119.6
132.5
121.5
143.6
148.3
117.4
132.6
123.8
147.1
148.6
119.1
133.0
126.7
152.3
149.4
123.1
133.8
127.5
153.0
149.5
124.7
135.0
129.9
154.3
149.7
156.8
153.8
17
18
19
20
21
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products . . .
Leather and products
27
28
29
30
31
4.72
7.74
1.79
2.24
.86
139.6
206.6
135.0
255.8
70.1
138.9
218.0
147.5
265.5
74.2
139.2
213.6
140.7
264.4
72.8
136.5
209.1
137.4
261.8
69.9
135.5
199.2
133.0
248.1
70.1
135.4
191.1
131.3
242.9
68.5
138.6
190.3
130.5
242.5
67.8
140.3
197.8
126.7
245.9
67.7
140.3
206.8
130.5
253.1
67.2
141.5
209.1
130.1
259.2
70.2
142.7
212.1
132.8
259.6
71.2
144.8
217.3
136.9
259.7
68.3
146.2
Durable manufactures
22 Ordnance, private and
government
23 Lumber and products
24 Furniture and fixtures
25 Clay, glass, stone products
19.91
24
25
32
3.64
1.64
1.37
2.74
78.0
119.5
150.0
146.5
77.1
131.6
160.8
165.0
76.9
25.3
159.5
156.4
77.5
105.2
157.1
148.8
77.9
104.5
149.5
140.8
77.5
109.7
143.1
134.5
77.1
112.8
138.6
134.2
77.2
121.7
141.1
135.7
77.1
122.6
144.8
141.4
79.1
122.2
147.2
145.2
80.0
124.9
147.2
147.8
80.1
124.7
148.8
151.2
80.3
26
27
28
29
30
33
331.2
34
35
36
6.57
4.21
5.93
9.15
8.05
101.7
91.8
134.9
162.6
172.8
116.4
107.2
145.0
167.1
181.7
113.7
105.9
145.5
166.5
179.2
106.4
97.4
141.4
163.2
177.0
96.1
84.4
133.2
162.1
171.4
90.4
75.4
126.1
158.3
166.6
81.7
68.1
123.8
158.5
165.0
86.0
75.3
125.8
158.8
166.7
90.1
79.8
129.0
159.1
167.5
100.6
93.3
132.8
161.1
170.0
113.5
107.2
133.9
163.4
173.3
113.3
104.7
136.3
165.2
175.3
112.7
137.6
167.8
177.3
37
371
9.27
4.50
116.7
118.8
122.1
126.2
123.8
130.1
115.1
114.7
109.8
105.9
110.0
106.7
110.7
107.9
108.3
104.4
112.9
113.4
118.8
124.2
121.7
129.0
120.5
126.7
117.5
119.4
372-9
38
39
4.77
2.11
1.51
114.8
171.0
147.8
118.3
175.9
153.8
117.8
173.5
152.8
115.5
173.8
151.2
113.5
171.0
147.3
113.1
169.2
43.7
113.4
167.5
144.7
111.9
167.6
144.2
112.3
167.4
142.8
113.6
169.6
145.0
114.8
169.9
147.5
114.7
172.1
149.3
115.8
175.0
150.6
Primary metals
Iron and steel
Fabricated metal products
Nonelectrical machinery
Electrical machinery
31 Transportation equipment
32
Motor vehicles and parts
33 Aerospace and miscellaneous
transportation equipment
34 Instruments
35 Miscellaneous manufactures . . .
134.0
137.7
Gross value (billions of 1972 dollars, annual rates)
MAJOR MARKET
36 Products, total
507.4
601.8
615.8
619.0
599.5
588.6
585.0
586.7
585.9
593.3
604.7
609.7
614.1
614.0
37 Final
38 Consumer goods
39
Equipment
40 Intermediate
390.92
277.52
113.42
116.62
465.2
313.3
151.9
136.7
471.2
317.6
153.6
144.6
475.9
321.3
154.6
143.1
464.5
312.5
152.0
135.0
457.3
306.3
151.0
131.3
455.6
305.8
149.8
129.4
456.9
307.7
149.2
129.9
453.0
305.1
147.9
132.9
458.0
309.0
149.0
135.3
467.7
316.6
151.1
137.1
471.8
318.7
153.1
138.0
474.2
319.5
154.7
139.9
472.6
317.5
155.2
141.3
1. The industrial production series has been revised back to January 1979.
2. 1972 dollars.
NOTE. Published groupings include some series and subtotals not shown separately. For description and historical data, see Industrial Production—1976 Revision
(Board of Governors of the Federal Reserve System: Washington, D.C.), December 1977.
A48
2.14
Domestic Nonfinancial Statistics • February 1981
HOUSING A N D CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1980
Item
1978
1979
1980
May
June
July
Aug.
Sept.
Oct.'
Nov.'
Dec.
Private residential real estate activity (thousands of units)
NEW UNITS
1 Permits authorized
1-family
2
3
2-or-more-family
1,801
1,183
618
1,552
981
570
1,171
703
468
825
495
330
1,078
628
450
1,2236
781
455
1,361
857
504
1,564
914
650
1,333
819
514
1,355
812
543
1,233
732
501
4 Started
1-family
5
6
2-or-more-family
2,020
1,433
587
1,745
1,194
551
1,291
850
441
906
628
278
1,223
757
466
1,265
869
396
1,429
1,003
426
1,541
1,059
482
1,557
1,030
527
1,563
1,012
551
1,548
947
601
7 Under construction, end of period 1 . . . .
1-family
8
9
2-or-more-family
1,310
765
546
1,140
639
501
n.a.
n.a.
n.a.
911
495
416
871
474
397
851
473
378
843'
474'
369'
868'
500'
368
888
516
372
913
533
380
n.a.
n.a.
n.a.
1,868
1,369
499
1,855
1,286
570
n.a.
n.a.
n.a.
1,536
970
566
1,469
886
583
1,502
876
626
1,405'
917'
488'
1,256'
753'
503'
1,285
818
467
1,259
811
448
n.a.
n.a.
n.a.
276
277
n.a.
162
163
215
206
238
246
235
n.a.
818
419
709
402
531
343
458
351
544
340
646
333
632
330
571'
335'
540
334
564
338
545
338
10 Completed
11
1-family
12 2-or-more-family
13 Mobile homes shipped
Merchant builder activity in 1-family
units
14 Number sold
15 Number for sale, end of period 1
Price (thousands of dollars)2
MEDIAN
16
Units sold
Average
17 Units sold
55.8
62.7
64.9
63.2
65.4
64.4
63.2
68.5'
66.0
67.3
67.9
62.7
71.9
76.7
73.1
76.3
76.8
76.5
80.3'
77.5
82.2
83.5
3,905
3,742
2,881
2,310
2,480
2,920
3,030
3,380
3,300
3,020
2,960
48.7
55.1
55.5
64.0
61.2
72.9
61.2
71.2
63.4
75.7
64.1
75.7
64.9
76.2
64.2
75.5
62.7
73.4
64.3
74.9
63.0
74.0
EXISTING UNITS ( 1 - f a m i l y )
18 Number sold
Price of units sold (thous. of dollars)2
19 Median
20 Average
Value of new construction 3 (millions of dollars)
CONSTRUCTION
21 Total put in place
205,457
228,948
227,719
218,909
215,021
214,315
215,149
223,660
226,132
231,576
241,559
22 Private
23 Residential
24
Nonresidential, total
Buildings
25
Industrial
26
Commercial
27
Other
28
Public utilities and other
159,555
93,423
66,132
179,948
99,029
80,919
172,654
86,287
86,367
164,791
76,957
87,834
161,349
73,360
87,989
158,593
74,277
84,316
162,057
78,632
83,425
167,882
84,378
83,504
171,053
87,375
83,678
177,827
93,659
84,168
184,453
96,992
87,461
10,993
18,568
6,739
29,832
14,953
24,924
7,427
33,615
13,987
29,314
8,530
34,536
14,197
30,149
8,571
34,917
15,022
29,609
8,256
35,102
13,267
28,063
8,115
34,871
13,046
27,993
8,095
34,291
13,102
27,425
8,447
34,530
12,996
28,417
8,760
33,505
13,392
28,888
8,799
33,089
14,672
30,030
9,036
33,723
45,901
1,501
10,713
4,457
29,230
49,001
1,641
11,915
4,586
30,859
55,065
1,882
13,450
5,081
34,652
54,118
1,671
13,230
5,285
33,932
53,672
1,748
14,012
4,241
33,671
55,721
2,041
13,758
5,896'
34,026'
53,092
2,315
11,334'
4,353'
35,090'
55,778
1,717
13,804
5,091
35,166
55,078
2,144
13,550
4,763
34,621
53,749
1,912
12,427
5,109
34,301
57,107
1,848
13,347
5,607
36,305
29 Public
30
Military
31 Highway
32
Conservation and development
33 Other
1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly comparable
with data in prior periods due to changes by the Bureau of the Census in its
estimating techniques. For a description of these changes see Construction Reports
(C-30-76-5), issued by the Bureau in July 1976.
NOTE. Census Bureau estimates for all series except (a) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing Institute
and seasonally adjusted by the Census Bureau, and (b) sales and prices of existing
units, which are published by the National Association of Realtors. All back and
current figures are available from originating agency. Permit authorizations are
those reported to the Census Bureau from 16,000 jurisdictions beginning with 1978.
Prices
2.15
A49
C O N S U M E R A N D P R O D U C E R PRICES
Percentage changes based on seasonally adjusted data, except as noted
12 months to
3 months (at annual rate) to
1 month to
1980
1980
Item
1979
Dec.
1980
Dec.
Mar.
June
Sept.
Dec.
Aug.
Sept.
Oct.
Nov.
Dec.
Index
level
Dec.
1980
(1967
= 100)1
CONSUMER PRICES 2
1
13.3
12.4
18.1
11.6
7.0
12.8
.7
1.0
1.0
1.0
1.1
258.4
2 Commodities
3 Food
4 Commodities less food
5
Durable
6
Nondurable
7 Services
g
Rent
9
Services less rent
13.0
10.2
14.3
10.3
19.6
13.7
7.9
14.6
11.1
10.2
11.5
10.7
12.5
14.2
9.1
14.9
16.1
3.8
22.1
7.6
39.8
20.9
8.3
22.8
5.0
5.6
4.7
6.8
3.5
21.6
10.0
23.3
12.8
18.9
10.6
15.7
4.0
-.6
8.6
1.8
10.6
12.5
9.5
13.1
6.4
16.1
9.6
17.0
1.2
1.8
.9
1.6
.4
-.1
.6
-.2
1.2
1.6
1.1
1.6
.2
.7
1.0
.7
.8
.8
.8
1.2
.1
1.2
1.0
1.2
1.0
1.1
.9
1.3
.5
1.0
.6
1.1
.7
1.1
.6
.5
1.0
1.5
.7
1.7
243.8
266.4
231.0
221.1
242.0
284.7
199.6
300.7
14.0
11.3
19.8
12.9
12.1
16.5
21.7
15.7
24.1
13.0
13.5
26.6
4.6
5.1
-5.6
12.8
14.4
24.5
.4
.5
-.2
.9
.9
.6
1.0
1.2
2.1
.9
1.1
1.7
1.1
1.1
1.7
255.5
244.5
334.2
12.6
14.3
7.6
18.0
8.8
16.5
11.7
11.7
6.5
14.3
11.5
12.3
19.3
21.6
-1.2
34.8
13.4
24.0
6.7
4.9
-7.8
11.3
11.3
5.2
12.2
13.8
36.9
4.4
8.5
6.4
8.8
7.2
2.8
9.2
12.6
14.7
1.5
1.6
4.3
.4
.7
.7
-.2
-.2
-.2
-.2
-.1
.1
.8
.6
.5
.6
1.4
.6
.6
.7
.5
.7
.6
.9
.6
.5
-.4
.9
1.0
1.9
254.7
255.9
247.2
257.6
251.1
292.6
26.0
11.1
19.2
8.7
21.9
-16.7
-3.9
10.5
39.1
96.4
23.6
-5.3
2.8
9.0
2.2
-.4
2.5
1.5
1.8
.6
1.0
-3.3
457.8
271.3
Other groupings
10 All items less food
11 All items less food and energy
12 Homeownership
PRODUCER PRICES
13 Finished goods
14 Consumer . . .
Foods
15
Excluding foods
16
17 Capital equipment
18 Intermediate materials 3
Crude materials
19 Nonfood
20
Food
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers.
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.
A50
2.16
Domestic Nonfinancial Statistics • February 1981
GROSS NATIONAL P R O D U C T A N D INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1979
Account
1978
1979
1980
1980
Q4
02
Q1
Q3
Q4
GROSS NATIONAL PRODUCT
1
Total
By source
2 Personal consumption expenditures
3
Durable goods
4 Nondurable goods
Services
6
7
8
9
10
11
12
13
14
Gross private domestic investment
Fixed investment
Nonresidential
Structures
Producers' durable equipment
Residential structures
Nonfarm
Change in business inventories
Nonfarm
2,156.1
2,413.9
2,628.8
2,496.3
2,571.7
2,564.8
2,637.3
2,741.4
1,348.7
199.3
529.8
619.6
1,510.9
212.3
602.2
696.3
1,671.1
211.6
674.3
785.3
1,582.3
216.1
639.2
727.0
1,631.0
220.9
661.1
749.0
1,626.8
194.4
664.0
768.4
1,682.2
208.8
674.2
799.2
1,744.4
222.1
697.8
824.5
375.3
353.2
242.0
78.7
163.3
111.2
106.9
415.8
398.3
279.7
96.3
183.4
118.6
113.9
396.8
399.8
294.7
108.3
186.5
105.1
100.1
410.0
410.8
290.2
105.1
185.1
120.6
115.4
415.6
413.1
297.8
108.2
189.7
115.2
110.1
390.9
383.5
289.8
108.4
181.4
93.6
88.9
377.1
393.2
294.0
107.3
186.8
99.2
94.5
403.7
409.4
297.3
109.3
188.0
112.2
106.9
22.2
21.8
17.5
13.4
-3.0
-1.7
-0.8
-4.4
2.5
1.5
7.4
6.1
-16.4
-12.3
-5.7
-2.0
15
16
17
Net exports of goods and services
Exports
Imports
-0.6
219.8
220.4
13.4
281.3
267.9
26.1
340.6
314.5
7.6
306.3
298.7
8.2
337.3
329.1
17.1
333.3
316.2
44.5
342.4
297.9
34.5
349.2
314.7
18
19
20
Government purchases of goods and services
Federal
State and local
432.6
153.4
279.2
473.8
167.9
305.9
534.8
199.2
335.6
496.4
178.1
318.3
516.8
190.0
326.8
530.0
198.7
331.3
533.5
194.9
338.6
558.8
213.3
345.5
21
22
23
24
25
26
By major type of product
Final sales, total
Goods
Durable
Nondurable
Services
Structures
2,133.9
946.6
409.8
536.8
976.3
233.2
2,396.4
1,055.9
451.2
604.7
1,097.2
260.8
2,631.8
1,132.7
459.5
673.2
1,230.9
265.2
2,497.1
1,078.4
448.1
630.3
1,142.8
275.1
2,569.1
1,116.9
456.4
660.5
1,178.6
276.2
2,557.4
1,106.4
444.6
661.8
1,205.6
252.8
2,653.4
1,129.4
456.5
672.9
1,249.0
258.9
2,747.1
1,178.2
480.5
697.7
1,290.2
273.0
27
28
29
Change in business inventories
Durable goods
Nondurable goods
22.2
17.8
4.4
17.5
11.5
6.0
-3.0
-4.1
1.2
-0.8
-0.4
-0.5
2.5
-11.8
14.3
7.4
3.3
4.1
-16.0
-8.4
-7.7
-5.7
.3
-6.1
30
MEMO: Total GNP in 1972 dollars
1,436.9
1,483.0
1,481.8
1,490.6
1,501.9
1,463.3
1,471.9
1,490.1
31 Total
1,745.4
1,963.3
2,121.4
2,031.3
2,088.5
2,070.0
2,122.4
n.a.
32 Compensation of employees
33 Wages and salaries
34
Government and government enterprises
35
Other
36 Supplement to wages and salaries
37
Employer contributions for social insurance
Other labor income
38
1,299.7
1,105.4
219.6
885.7
194.3
92.1
102.2
1,460.9
1,235.9
235.9
1,000.0
225.0
106.4
118.6
1,596.7
1,343.8
253.6
1,090.2
252.9
115.8
137.1
1,518.1
1,282.4
243.3
1,039.1
235.7
109.8
126.0
1,558.0
1,314.5
246.7
1,067.9
243.5
112.6
130.9
1,569.0
1,320.4
250.5
1,069.9
248.6
113.6
135.1
1,597.4
1,342.3
253.9
1,088.4
255.0
116.0
139.1
1,662.4
1,397.8
263.2
1,134.6
264.6
121.1
143.5
117.1
91.0
26.1
131.6
100.7
30.8
130.6
107.2
23.4
136.3
106.8
29.5
133.7
107.9
25.7
124.9
101.6
23.3
129.7
107.6
22.1
134.2
111.7
22.5
NATIONAL INCOME
39
40
41
Proprietors' income1
Business and professional 1
Farm 1
42
Rental income of persons 2
43 Corporate profits 1
44 Profits before tax 3
45
Inventory valuation adjustment
46 Capital consumption adjustment
47 Net interest
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustments.
27.4
30.5
31.9
31.0
31.2
31.5
32.0
32.6
199.0
223.3
-24.3
-13.5
196.8
255.4
-42.6
-15.9
182.1
242.7
-43.3
-17.2
189.4
255.4
-50.8
-15.1
200.2
277.1
-61.4
-15.4
169.3
217.9
-31.1
-17.6
177.9
237.6
-41.7
-17.9
-38.9
-18.1
115.8
143.4
180.1
156.5
165.4
175.3
185.3
194.3
3. For after-tax profits, dividends, and the like, see table 1.49.
SOURCE. Survey of Current Business (Department of Commerce).
n.a.
n.a.
National Income Accounts
2.17
A51
PERSONAL INCOME A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1980
1979
Account
1980
1979
1978
Q4
Q1
Q2
04
03
PERSONAL INCOME AND SAVING
1 Total personal income
1,721.8
1,943.8
2,161.0
2,032.0
2,088.2
2,114.5
2,182.1
2,259.1
2 Wage and salary disbursements
3
Commodity-producing industries
4
Manufacturing
5
Distributive industries
6
Service industries
7
Government and government enterprises
1,105.2
389.1
299.2
270.5
226.1
219.4
1,236.1
437.9
333.4
303.0
259.2
236.1
1,343.8
465.5
350.8
329.0
295.7
253.6
1,282.2
450.4
340.4
315.0
273.7
243.1
1,314.7
461.7
347.9
322.6
283.6
246.8
1,320.4
456.0
343.2
323.2
290.8
250.5
1,341.8
460.1
346.7
329.2
298.7
253.9
1,398.3
484.3
365.5
340.9
309.9
263.2
102.2
117.2
91.0
26.1
27.4
43.1
173.2
223.3
116.2
118.6
131.6
100.8
30.8
30.5
48.6
209.6
249.4
131.8
137.1
130.6
107.2
23.4
31.9
54.4
286.6
294.4
153.7
126.0
136.3
106.8
29.5
31.0
50.1
225.7
263.1
139.3
130.9
133.7
107.9
25.7
31.2
52.4
239.9
271.7
142.0
135.1
124.9
101.6
23.3
31.5
54.2
253.6
280.7
144.7
139.1
129.7
107.6
22.1
32.0
55.1
261.8
310.7
163.2
143.5
134.2
111.7
22.5
32.6
56.1
271.3
314.4
165.1
8
9
10
11
12
13
14
15
16
17
Other labor income
Proprietors' income 1
Business and professional 1
Farm 1
Rental income of persons 2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits . . . .
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
69.6
80.6
87.9
82.4
86.2
85.9
88.1
91.3
1,721.8
1,943.8
2,161.0
2,032.0
2,088.2
2,114.5
2,182.1
2,259.1
258.8
302.0
338.7
321.8
323.1
330.3
341.5
360.0
20 EQUALS: Disposable personal income
1,462.9
1,641.7
1,822.2
1,710.1
1,765.1
1,784.1
1,840.6
1,899.1
21
LESS: Personal outlays
1,386.6
1,555.5
1,718.7
1,629.4
1,678.7
1,674.1
1,729.2
1,792.5
22 EQUALS: Personal saving
76.3
86.2
103.6
80.7
86.4
110.0
111.4
106.6
6,568
4,136
4,487
5.2
6,721
4,219
4,584
5.2
6,651
4,193
4,571
5.7
6,730
4,251
4,596
4.7
6,768
4,251
4,600
4.9
6,580
4,134
4,532
6.2
6,597
4,172
4,565
6.1
6,661
4,215
4,589
5.6
27 Gross saving
355.2
412.0
404.2
402.0
404.5
394.5
402.0
n.a.
28
29
30
31
355.4
76.3
57.9
-24.3
398.9
86.2
59.1
-42.6
436.4
103.6
45.3
-43.3
396.4
80.7
50.6
-50.8
413.0
86.4
52.1
-61.4
435.9
110.0
42.1
-31.1
446.5
111.4
42.8
-41.7
n.a.
106.6
n.a.
-38.9
136.4
84.8
.0
155.4
98.2
.0
175.5
112.0
.0
161.5
103.6
.0
167.1
107.4
.0
173.0
110.7
.0
178.4
113.4
.5
183.4
116.4
-.5
-0.2
-29.2
29.0
11.9
-14.8
26.7
-33.3
-61.6
28.2
4.4
-24.5
28.9
1.7
-36.3
26.6
-29.6
-66.5
23.9
-45.6'
-74.2
28.6
n.a.
n.a.
n.a.
19
LESS: Personal tax and nontax payments
MEMO:
Per capita (1972 dollars)
23 Gross national product
24
Personal consumption expenditures
25
Disposable personal income
26 Saving rate (percent)
GROSS SAVING
Gross private saving
Personal saving
Undistributed corporate profits 1
Corporate inventory valuation adjustment
Capital consumption allowances
32 Corporate
33 Noncorporate
34 Wage accruals less disbursements
35 Government surplus, or deficit ( - ) , national income and product
accounts
36 Federal
37
State and local
38 Capital grants received by the United States, net
39 Gross investment
40 Gross private domestic
41 Net foreign
42 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
.0
1.1
1.1
1.1
1.1
1.1
1.1
1.1
361.6
414.1
406.0
401.3
407.3
392.5
405.0
419.0
375.3
-13.8
415.8
-1.7
396.8
9.1
410.0
-8.7
415.6
-8.3
390.9
1.7
377.1
27.8
403.7
15.3
6.4
2.2
1.7
-0.7
2.8
-1.9
3.0
n.a.
SOURCE. Survey of Current Business (Department of Commerce).
A52
3.10
International Statistics • February 1981
U . S . I N T E R N A T I O N A L T R A N S A C T I O N S Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted.1
1980
1979
1979
Item credits or debits
Q3
-14,259
1 Balance on current account
2
Not seasonally adjusted
3
4
5
6
7
8
9
10
11
Merchandise trade balance 2
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net 3
Other service transactions, net
MEMO: Balance on goods and services 3 - 4
Remittances, pensions, and other transfers
U.S. government grants (excluding military)
12 Change in U.S. government assets, other than official reserve assets, net (increase, - )
13 Change in U.S. official reserve assets (increase, - )
14
Gold
15
Special drawing rights (SDRs)
16
Reserve position in International Monetary Fund
17
Foreign currencies
18 Change in U.S. private assets abroad (increase, - ) 3
19
Bank-reportecfclaims
20
Nonbank-reported claims
21
U.S. purchase of foreign securities, net
22
U.S. direct investments abroad, net 3
23 Change in foreign official assets in the United States
(increase, + )
24
U.S. Treasury securities
25
Other U.S. government obligations
26
Other U.S. government liabilities 5
27
Other U.S. liabilities reported by U.S. banks
28
Other foreign official assets 6
29 Change in foreign private assets in the United States
(increase, + ) 3
30
U.S. bank-reported liabilities
31
U.S. nonbank-reported liabilities
32
Foreign private purchases of U.S. Treasury securities,
net
33
Foreign purchases of other U.S. securities, net
34
Foreign direct investments in the United States, net 3 . .
-788
1,099
-2,909
Q2
Q1
Q4
-1.802
Q3 P
486
-2,610
-2,426
-2,431
-680
4,900
480
-30,873
120,816
-151,689
1,628
17,988
1,794
-9,464
-33,759
142,054
-175,813
886
20,899
2,769
-9,204
-29,469
182,055
-211,524
-1,274
32,509
3,112
4,878
-7,060
47,198
-54,258
-443
9,319
690
2,506
-9,225
50,237
-59,462
-700
8,883
792
-250
-10,850
54,708
-65,558
-922
10,094
880
-798
-7,505
54,710
-62,215
-994
6,133
1,261
-1,105
-2,828
56,288
-59,116
-632
8,467
1,370
6,377
-1,830
-2,775
-1,884
-3,171
-2,142
-3,524
-529
-878
-665
-887
-565
-1,247
-564
-762
-574
-903
-3,693
-4,644
-3,783
-766
-925
-1,467
-1,191
-1,320
-375
-1,132
-65
-1,136
-189
257
2,779
-649
-65
-3,268
502
-1,109
-121
-294
158
732
-65
1,249
4,231
-4,683
-52
2,831
27
-611
1,152
-34
-2,082
112
-99
489
261
-294
-554
-31,725
-11,427
-1,940
-5,460
-12,898
-57,279
-33,631
-3,853
-3,450
-16,345
-56,858
-25,868
-2,029
-4,643
-24,318
-27,228
-16,997
-932
-2,143
-7,156
-11,918
-7,213
410
-986
-4,129
-7,976
-274
-1,474
-765
-5,463
-25,023
-21,051
147
-1,246
-2,873
-17,767
-12,477
n.a.
-805
-4,485
36,574
30,230
2,308
1,159
773
2,105
33,292
23,523
666
2,220
5,488
1,395
-14,270
-22,356
465
-714
7,219
1,116
5,789
5,024
335
216
56
158
-1,221
-5,769
41
-924
4,881
550
-7,215
-5,357
801
181
-3,185
345
7,775
4,314
250
737
1,652
822
8,025
3,769
549
305
1,989
1,413
14,167
6,719
473
30,804
16,259
1,640
51,845
32,668
1,692
19,152
13,185
606
5,246
400
1,050
14,409
6,355
683
174
-4,208
1,331
2,978
36
n.a.
534
2,713
3,728
2,197
4,830
2,942
9,713
1,466
677
3,218
920
313
2,563
3,278
2,427
1,666
-1,225
1,194
3,082
-254
990
2,206
1,152
6,975
-99
20,194
1,460
4,293
-4,022
18,734
8,315
-118
2,811
7,896
0
35 Allocation of SDRs
36 Discrepancy
37
Owing to seasonal adjustments
38
Statistical discrepancy in recorded data before seasonal
adjustment
11,354
1,139
22,848
11,354
0
0
0
0
0
-825
-3,641
11,269
2,400
23,848
2,816
8,869
0
0
0
0
0
MEMO:
Changes in official assets
U.S. official reserve assets (increase, - )
Foreign official assets in the United States
(increase, + )
41 Change in Organization of Petroleum Exporting Countries
official assets in the United States (part of line 23
above)
42 Transfers under military grant programs (excluded from
lines 4, 6, and 11 above)
39
40
-375
732
-1,132'
2,779
-649
-3,268
502
-1,109
35,416
31,072
-13,556
5,573
-297
-7,396
7,038
7,720
6,351
-1,137
5,508
1,676
4,955
2,930
4,749
4,380
204
236
305
139
144
155
110
1. Seasonal factors are no longer calculated for lines 13 through 42.
2. Data are on an internationalaccounts (IA) basis. Differs from the census basis
primarily because the IA basis includes imports into the U.S. Virgin Islands, and
it excludes military exports, which are part of line 6.
3. Includes reinvested earnings of incorporated affiliates.
4. Differs from the definition of "net exports of goods and services" in the
national income and product (GNP) account. The G N P definition makes various
adjustments to merchandise trade and service transactions.
5. Primarily associated with military sales contracts and other transactions arranged with or through foreign official agencies.
6. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
NOTE. Data are from Bureau of Economic Analysis, Survey of Current
(U.S. Department of Commerce).
Business
Trade and Reserve Assets
3.11
A53
U.S. FOREIGN T R A D E
Millions of dollars; monthly data are seasonally adjusted.
1980
Item
1978
1979'
1980
June
1
EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments
2
GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded
warehouses
3
Trade balance
143,578
181,651
220,549
Aug.
Sept.
Oct.
Nov.
18,642
18,075
19.103
18.701
19,088
18,634
Dec.
19,118
171,978
206,256
240,834
19,893
18,995
19,236
19.465
20,060
19,422
21,174
-28,400
-24,605
-20,286
-1,251
-920
-132
-764
-972
-788
-2,056
NOTE. Bureau of Census data reported on a free-alongside-ship (f.a.s.) value
basis. Effective January 1978, major changes were made in coverage, reporting,
and compiling procedures. The international-accounts-basis data adjust the Census
basis data for reasons of coverage and timing. On the export side, the largest
adjustments are: (a) the addition of exports to Canada not covered in Census
statistics, and (b) the exclusion of military exports (which are combined with other
military transactions and are reported separately in the "service account").
3.12
July
On the import side, the largest single adjustment is the addition of imports into the
Virgin Islands (largely oil for a refinery on St. Croix), which are not included in
Census statistics.
SOURCE. FT 900 "Summary of U.S. Export and Import Merchandise Trade"
(U.S. Department of Commerce, Bureau of the Census).
U.S. R E S E R V E ASSETS
Millions of dollars, end of period
1980
Type
1977
1978
1979
July
1 Total
1
Aug.
Sept.
Oct.
Nov.
Dec.
Jan .P
19,312
18,650
18,956
21,845
22,691
22,994
23,967
25,673
26,756
28,316
11,719
11,671
11,172
11,172
11,172
11,168
11,163
11,162
11,160
11,159
2,629
1,558
2,724
3,842
4,009
4,007
3,939
3,954
2,610
3,628
2
Gold stock, including Exchange Stabilization Fund 1
3
Special drawing rights2-3
4
Reserve position in International Monetary Fund 2
4,946
1,047
1,253
1,410
1,564
1,665
1,671
1,822
2,852
2,867
5
Foreign currencies4-5
18
4,374
3,807
5,421
5,946
6.154
7.194
8,735
10,134
10,662
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
3.22.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of member countries.
From July 1974 through December 1980, 16 currencies were used; from January
1981, 5 currencies have been used. The U.S. SDR holdings and reserve position
in the IMF also are valued on this basis beginning July 1974.
3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1.1971; $710 million on Jan.
1, 1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1. 1980; and $1,093
million on Jan. 1, 1981; plus net transactions in SDRs.
4. Beginning November 1978, valued at current market exchange rates.
5. Includes U.S. government securities held under repurchase agreement against
receipt of foreign currencies, if any.
A54
3.13
International Statistics • February 1981
FOREIGN BRANCHES OF U.S. BANKS
Balance Sheet Data
Millions of dollars, end of period
Asset account
1977
19781
1980
1979
May
June
July
Aug.
Sept.
Oct.
NOV.P
All foreign countries
1 Total, all currencies
2 Claims on United States
3
Parent bank
4
Other
5 Claims on foreigners
6
Other branches of parent bank
7
Banks
8
Public borrowers 2
9
Nonbank foreigners
10 Other assets
11 Total payable in U.S. dollars
12 Claims on United States
13 Parent bank
14 Other
15 Claims on foreigners
16 Other branches of parent bank
17 Banks
18 Public borrowers 2
19 Nonbank foreigners
20 Other assets
258,897
306,795
364,233
378,899
376,722
377,813
386,200
381,764
389,086
11,623
7,806
3,817
17,340
12,811
4,529
32,302
25,929
6,373
35,606
26,139
9,467
29,069
18,565
10,504
29,053
17,525
11,528
36,821
26,684
10.137
29,308'
19,676
9,632'
30,448
21,447
9,001
30,580
22,214
8,366
238,848
55,772
91,883
14,634
76,560
278,135
70,338
103,111
23,737
80,949
317,175
79,661
123,395
26,072
88,047
326,340
76,317
130,313
25,438
94,272
330,171
76,061
132,587
25,632
95,891
331,301
75,196
134,624
25,474
96,007
332,317
72,417
136,484
26,112
97,304
338,400'
73,638
139,604
26,492
98,666'
334,149
72,266
137,668
26,376
97,839
340,797
74,058
140,005
26,910
99,824
385,011
8,425
11,320
14,756
16,953
17,482
17,459
17,062
17,303
17,167
17,709
193,764
224,940
267,711
277,542
275,232
275,719
283,707
281,444
278,415
284,500
11,049
7,692
3,357
16,382
12,625
3,757
31,171
25,632
5,539
34,314
25,778
8,536
27,867
18.254
9,613
27,688
17,209
10,479
35,508
26,363
9,145
28,105'
19,405
8,700'
29,031
21,050
7,981
29,136
21,813
7,323
178,896
44,256
70,786
12,632
51,222
203,498
55,408
78,686
19,567
49,837
229,118
61,525
96,243
21,629
49,721
234,159
58,908
102,693
21,221
51,337
238,213
58,456
104,902
21,382
53,473
239,271
57,813
106,313
21,233
53,912
239,356
54,965
107,976
21,785
54,630
244,922'
56,445
111,651
22,059
54,767'
240,825
55,054
108,868
22,406
54,497
246,489
57,233
110,891
22,831
55,534
3,820
5,060
7,422
9,069
9,152
8,760
8,843
8,417
8,559
8,875
United Kingdom
21 Total, all currencies
22 Claims on United States
23 Parent bank
24
Other
25 Claims on foreigners
26
Other branches of parent bank
27
Banks
28
Public borrowers 2
29 Nonbank foreigners
30 Other assets
31 Total payable in U.S. dollars
32 Claims on United States
33 Parent bank
34
Other
35 Claims on foreigners
36
Other branches of parent bank
37 Banks
38
Public borrowers 2
39
Nonbank foreigners
40 Other assets
90,933
106,593
130,873
138,930
139,066
135,669
136,467
136,872
137,096
140,715
4,341
3,518
823
5,370
4,448
922
11,117
9,338
1,779
11,399
9,140
2,259
9,157
6,870
2,287
8,366
5,705
2,661
8,465
6,023
2,442
8,022
5,788
2,234
8,206
5,969
2,237
8,771
6,552
2,219
84,016
22,017
39,899
2,206
19,895
98,137
27,830
45,013
4,522
20,772
115,123
34,291
51,343
4,919
24,570
121,851
34,305
54,076
5,591
27,879
124,059
34,824
54,855
5,897
28,483
120,914
32,231
54,824
5,710
28.149
121,805
31,607
55,530
5,865
28,803
122,825
30,792
56,911
6,005
29,117
122,890
31,399
56,396
5,943
29,152
125,859
32,267
57,423
6,405
29,764
2,576
3,086
4,633
5,680
5,850
6,389
6,197
6,025
6,000
6,085
66,635
75,860
94,287
98,809
98,013
93,158
93,720
94,355
94,365
97,246
4,100
3,431
669
5,113
4,386
727
10,746
9,297
1,449
10,988
9,059
1,929
8,790
6,810
1,980
7,831
5,629
2,202
7,954
5,960
1,994
7,656
5,744
1,912
7,637
5,817
1,820
8,233
6,410
1,823
61,408
18,947
28,530
1,669
12,263
69,416
22,838
31,482
3,317
11,779
81,294
28,928
36,760
3,319
12,287
85,013
28,466
38,594
4,277
13,676
86,404
28,692
39,050
4,396
14,266
82,434
26,083
38,471
4,280
13,600
82,705
25,565
39,070
4,327
13,743
83,933
24,907
40,817
4,419
13,790
83,961
25,577
39,988
4,381
14,015
86,246
26,710
40,542
4,706
14,288
1,126
1,331
2,247
2,808
2,819
2,893
3,061
2,766
2,767
2,767
123,076
Bahamas and Caymans
41 Total, all currencies
42 Claims on United States
43 Parent bank
44
Other
45 Claims on foreigners
46
Other branches of parent bank
47
Banks
48
Public borrowers 2
49
Nonbank foreigners
50 Other assets
51 Total payable in U.S. dollars
For notes see opposite page.
79,052
91,735
108,977
116,538
115,276
120,243
128,429
119,379
119,597
5,782
3,051
2,731
9,635
6,429
3,206
19,124
15,196
3,928
21,406
15,334
6,072
17,682
10,660
7,022
18.240
10,497
7,743
25,846
19,129
6,717
18,281'
11,839
6,442'
19,651
13,857
5,794
18,283
13,026
5,257
71,671
11,120
27,939
9,109
23,503
79,774
12,904
33,677
11,514
21,679
86,718
9,689
43,171
12,905
20,953
90,995
12,454
46,782
11,636
20,123
93,432
12,977
48,012
11,554
20,889
98,001
14,362
50,780
11,627
21,232
98,463
13,160
51,712
12,054
21,537
100,844'
14,724
52,622
12,076
21,422'
95,845
13,093
49,664
12,439
20,649
97,078
13,169
50,737
12,207
20,965
1,599
2,326
3,135
4,137
4,162
4,002
4,120
3,951
3,883
4,236
73,987
85,417
102,368
110,872
109,715
114,474
122,581
117,142
113,538
113,802
Overseas Branches
3.13
A55
Continued
1980
Liability account
1977
1978 1
1979
May
June
July
Aug.
Sept.
Oct.
NOV.P
All foreign countries
52 Total, all currencies
53 To United States
Parent bank
54
Other banks in United States
55
Nonbanks
56
57 To foreigners
Other branches of parent bank
58
Banks
59
Official institutions
60
Nonbank foreigners
61
62 Other liabilities
63 Total payable in U.S. dollars
64 To United States
Parent bank
65
Other banks in United States
66
67
Nonbanks
68 To foreigners
Other branches of parent bank
69
Banks
70
Official institutions
71
Nonbank foreigners
72
73 Other liabilities
258,897
306,795
364,233
378,899
377,813
386,200
381,764
389,086
44,154
24,542
19,613
57,948
28,590
12,212
17,146
66,618
24,462
13,968
28,188
73,263
26,603
13,090
33,570
76,120'
30,918
12,255'
32,947
83,151
35,357
11.415
36.379
87,492
37,400
14,725
35,367
83,922'
38.398
12,581'
32,943
84,072
37,139
12,828
34,105
86,564
36.822
13,400
36,342
206,579
53,244
94,140
28,110
31,085
238.912
67,496
97,711
31,936
41,769
283.344
77,601
122,849
35,664
47,230
289,754
72,530
130,805
34,910
51.509
284,716'
72,061
127,813'
34.141
50,701
279,567
72,067
122,708
33.073
51.719
283.924
69.158
130,344
33,080
51.342
287,048'
70,258
130,989'
33.079
52,722'
283,835
69,522
131,359
30,678
52,276
288,110
71,487
132,180
31,046
53,397
376,722
13,857
14,412
285,903
292,688
81,045'
36,799
12,356'
31,890'
81,239
35,447
12,549
33,243
83,802
35,160
13,104
35,538
198,754
53,335
86.404
26,165
32,850
199,644'
54,753
85,355'
25,659
33,877'
197,317
53,576
86,188
23,329
34,224
200,817
55,530
86,550
23,760
34,977
8,202
7.747'
7,347
8,069
137,096
140,715
19,125
2,712
5,768
10,645
20,594
3,198
5,732
11,664
112,536
13,790
56,008
19,807
22,931
114,813
13,951
58,127
20,437
22,298
8.163
9,935
14.271
15,882
15,886
15,095
14.784
198,572
230,810
273,819
285,131
282,578
283,026
291,606
42,881
24,213
18,669
55,811
27,519
11.958
16,334
64,530
23,403
13.771
27.356
70,826
25,279
12.826
32.721
73,527'
29,547
11.985'
31.995
80,630
33,977
11,155
35,498
84,650
35,906
14,419
34,325
151,363
43,268
64,872
23,972
19,251
169.927
53,396
63,000
26,404
27,127
201.476
60,513
80,691
29,048
31,224
205,263
56,577
87,029
28.360
33,297
200.049'
56,247
84,467'
26.961
32,374
194,322
56,206
78,911
26,177
33,028
4,328
5,072
7,813
9,042
8.074
9.002
385,011
14,041'
288,436
United Kingdom
74 Total, all currencies
75 To United States
Parent bank
76
Other banks in United States
77
Nonbanks
78
79 To foreigners
Other branches of parent bank
80
Banks
81
Official institutions
82
83 Nonbank foreigners
84 Other liabilities
85 Total payable in U.S. dollars
86 To United States
Parent bank
87
Other banks in United States
88
Nonbanks
89
90 To foreigners
Other branches of parent bank
91
Banks
92
Official institutions
93
Nonbank foreigners
94
95 Other liabilities
90,933
106,593
130,873
138,930
135,669
136,467
7,753
1,451
6,302
9,730
1,887
4,232
3.611
20,986
3,104
7.693
10,189
19,877
2,118
6,265
11.494
139,066
20,012'
2,410
6,129'
11,473
21,404
3,275
5,567
12,562
20.608
2,542
5,910
12,156
80,736
9,376
37,893
18,318
15,149
93,202
12,786
39,917
20.963
19,536
104.032
12,567
47,620
24,202
19,643
111,769
13.824
54,309
23,628
20,008
112,055'
13.767
54.927'
22,577
20.784
107,739
12.694
51,203
21,088
22,754
109,604
13.343
51.452
22.600
22,209
136,872
19,343
2,951
5.361
11.031
111.866
13,295
53,749
22,437
22.385
2,445
3,661
5,855
7,284
6.999
6,526
6.255
5,663
5,435
5,308
67,573
77,030
95,449
101,170
100,117
95,314
96,453
96,403
96,133
99,135
7,480
1,416
6,064
9,328
1,836
4,144
3,348
20.552
3,054
7,651
9,847
19,284
2.060
6,210
11,014
19,321'
2,315
6,056'
10,950
20,843
3,238
5.486
12,119
20,007
2.496
5.809
11,702
18.687
2.892
5.259
10,536
18,519
2,634
5,682
10,203
19,978
3,101
5,616
11,261
58,977
7,505
25,608
15,482
10,382
66,216
9,635
25.287
17.091
14,203
72,397
8,446
29,424
20,192
14,335
78,278
10,021
34,488
19,558
14,211
77,322'
9.758
35.394'
18,300
13,870
71.489
8,672
31.352
16,846
14.619
73,431
9,128
31,726
18,253
14,324
75,001
9,215
32,865
18,046
14,875
75,250
9,791
34,741
15,338
15,380
76,696
9.770
35,998
15,989
14,939
1,116
1,486
2,500
3,608
3,474
2.982
3,015
2,715
2,364
2,461
123,076
Bahamas and Caymans
79,052
91,735
108,977
116,538
115,276
120,243
128,429
119,379
119,597
97 To United States
98
Parent bank
99 Other banks in United States
100 Nonbanks
32,176
20,956
_
11,220
39,431
20,482
6,073
12,876
37,719
15,267
5,204
17,248
45.618
19,170
5.721
20,727
48,431
22,748
5,200
20.483
54,190
26,589
4,821
22,780
58,877
29,189
7,460
22.228
56.237'
29.329
6.021'
20.887
56,139
27,694
5,945
22,500
56,862
26,752
6,508
23,602
101 To foreigners
102 Other branches of parent bank
103 Banks
104 Official institutions
105 Nonbank foreigners
45,292
12,816
24,717
3,000
4,759
50,447
16,094
23,104
4,208
7,041
68,598
20,875
33,631
4,866
9,226
67,971
20,009
32.174
5,461
10,327
63,935
20,102
28.917
5.096
9,820
63,171
20,409
27.126
5.525
10,111
66,593
18,081
34,086
4.119
10,307
63,944'
17,079
32,181'
4,250
10,434
60,438
16,719
29,193
4,575
9.951
59,492
15,878
28,949
4,333
10,332
96 Total, all currencies
106 Other liabilities
107 Total payable in U.S. dollars
1,584
1,857
2,660
2,949
2,910
2,882
2.959
2,895
2.802
3,243
74,463
87,014
103,460
112,509
111,494
116,182
124,017
118,473
115,021
115,351
l.In May 1978 the exemption level for branches required to report was increased.
which reduced the number of reporting branches.
2.In May 1978 a broader category of claims on foreign public bor-
rowers, including corporations that are majority owned by foreign governments,
replaced the previous, more narrowly defined claims on foreign official institutions.
A56
3.14
International Statistics • February 1981
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1980
1977
Item
1 Total 1
2
3
4
5
6
7
8
9
10
11
12
By type
Liabilities reported by banks in the United States 2
U.S. Treasury bills and certificates 3
U.S. Treasury bonds and notes
Marketable
Nonmarketable 4
U.S. securities other than U.S. Treasury securities5
By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries 6
1979
1978
July'
Aug.'
Sept.'
Oct.
NOV.p
Dec.P
131,097
162,589
149,48 l r
149,151
153,088
154,674
156,899
157,385
163,196
164,434
18,003
47,820
23,290
67,671
30.475
47.666
28,912
45,907
29,211
47,982
29,449
49.811
30,918
49,361
28,815
50,392
29,601
55,104
30,483
56,243
32,164
20,443
12,667
35,894
20,970
14,764
37.590
17,387
16,363'
39,784
15,954
18,594
40,546
15.954
19.395
39,801
15,654
19,959
40,799
15.254
20,567
41.463
15,254
21,461
41,764
15,254
21,473
41,431
14,654
21,623
70.748
2,334
4,649
50,693
1,742
931
93.089
2.486
5.046
58.817
2.408
743
85.602
1.898
6.291
52,793'
2,412
485
75,271
2,157
5,943
62,215
2,694
871
78,141
1.907
6,308
63,086
2,930
716
78,424
2,156
6,050
64,287
3,281
476
76,942
1,901
6,610
67,696
3,232
518
76,004
1,736
6,008
69,042
3,520
1,075
80,899
1,433
5,722
70,025
3,867
1,250
81,713
1,563
5,667
70,536
4,128
827
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial
paper, negotiable time certificates of deposit, and borrowings under repurchase
agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable
in foreign currencies through 1974) and Treasury bills issued to official institutions
of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes bonds
and notes payable in foreign currencies.
3.15
June'
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 AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1980
1979
Item
1977
1978'
Sept.'
1 Banks' own liabilities
2 Banks' own claims1
Deposits
3
4
Other claims
5 Claims of banks' domestic customers 2
925
2,356
941
1,415
1. Includes claims of banks' domestic customers through March 1978.
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
their domestic customers.
2,363
3,671
1,795
1,876
358
2,401
3.013
1,376
1,637
609
Dec.'
1,868
2.419
994
1,425
580
Mar.'
2.358
2.772
1,212
1.560
1,058
June'
2,693
2,955
1,048
1,908
798
Sept.
2,688
3.161
1,120
2,040
595
NOTE. Data on claims exclude foreign currencies held by U.S. monetary authorities.
Nonbank-Reported
3.16
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Data
A57
Reported by Banks in the United States
Millions of dollars, end of period
1980
Holder and type of liability
1 All foreigners
2 Banks' own liabilities
Demand deposits
3
4 Time deposits1
5
Other 2
6
Own foreign offices 3
7 Banks' custody liabilities4
8
U.S. Treasury bills and certificates 5
9
Other negotiable and readily transferable
instruments 6
10 Other
11 Nonmonetary international and regional
organizations7
12 Banks' own liabilities
13 Demand deposits
14 Time deposits1
15 Other 2
16 Banks' custody liabilities4
17 U.S. Treasury bills and certificates
18 Other negotiable and readily transferable
instruments 6
19 Other
20 Official institutions8
21 Banks' own liabilities
22
Demand deposits
23 Time deposits 1
24
Other 2
25 Banks' custody liabilities4
26
U.S. Treasury bills and certificates 5
27
Other negotiable and readily transferable
instruments 6
28
Other
29 Banks 9
30 Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
33
Time deposits 1
34
Other 2
35
1977
45 Banks' custody liabilities4
46
U.S. Treasury bills and certificates
47
Other negotiable and readily transferable
instruments 6
48
Other
49 MEMO: Negotiable time certificates of deposit
in custody for foreigners
Aug.
Sept.
Oct.
Nov.
Dec.P
187,492'
186,922'
188,295r
201,402'
191,683'
195,827'
204,802
205,609
18,996
11,521
78,730'
19,218
12,431
9,704'
37,376
117,211'
23,325
13,627
16,419'
63,839
116,625'
25,870'
12,780'
16,801'
61,174'
116,497'
22,046'
12,995'
18,700'
62,757'
128,171'
22,511
13,208'
18,785'
73,667'
118,663
22,474
13,824
18,046'
64,319'
121,240'
22,457'
14,157'
17,222'
67,405'
125,058
22,847
14,773
17,101
70,336
125,112
23,859
15,172
17,427
68,654
88,147'
68,202
70,281'
48,573
70,297'
48,193
71,797'
49,627
73,231'
51,505
73,020'
50,731
74,587'
51,990
79,743
56,484
80,497
57,595
17,446'
2,499
19,359'
2,350
19,522'
2,582'
19,438'
2,732
19,141'
2,586'
19,778'
2,511
19,967
2,630
20,624
2,635
20,070
2,832
3,274
2,607
2,356r
3,509r
2,903
2,820
2,549
2,734
2,476
2,283
231
139
906
330
84
492
714'
260
151
303'
852'
99
92
662'
607
214
93
299
501
171
101
229
476
141
100
235
352
115
95
143
383
187
92
104
383
146
85
152
48,906
1,701
201
1,643
102
2,657
1,106
2,296
604
2,319
644
2,073
316
2,382
581
2,093
337
1,900
254
1,499
1
1,538
2
1,551
0
1,692
0
1,675
0
1,757
0
1,800
0
1,756
0
1,646
0
65,822
90,706
78,142
74,819r
77,193'
79,260
80,279
79,207'
84,706
86,726
3,528
1,797
12,129
3,390
2,550
6,189
18,228
4,704
3.041
10,483
16,313'
5,009'
2,670
8,633'
17,071'
4,218
2,705'
10,148
17,591
3,898
3,006'
10,688'
18,548
4,348
3,477
10,724
16,182'
3,406
3,390
9,387'
16,897
3,553
3,623
9,721
17,938
3,962
3,633
10,342
78,577
67,415
59,914
47,666
58,507
45,907
60,122
47,982
61,669
49,811
61,731
49,361
63,025'
50,392
67,808
55,104
68,788
56,243
10,992
170
12.196
52
12,554
45
12,092
48
11,805'
54'
12,307
63
12,542'
90
12,648
56
12,491
54
57,495'
88,352'
89,479'
90,111'
100,788'
89,979'
95,012'
97,679
96,431
52,705'
15,329'
11,257
1,443
2,629'
83,352'
19,512'
13,274
1,680
4,558'
84,080'
22,907'
14,926'
1,479
6,502'
84,629'
21,872'
12,882'
1,626'
7,364
95,475'
21,808
13,427
1,514
6,867
84,737'
20,419
12,995
1,412
6,012
89,653'
22,249'
13,843'
1,724
6,681'
91,799
21,463
13,714
1,786
5,963
90,477
21,822
14,116
1,809
5,897
37,376
63,839
61,174'
62,757'
73,667'
64,319'
67,405
70,336
68,654
4,790
300
5,000
422
5,399'
594
5,482
557
5,313
577
5,241
361
5,359
515
5,880
529
5,954
623
2,425
2,065
2,405
2,173
2,522
2,283'
2,395
2,530
2,435
2,301
2,533
2,347
2,417
2,427
2,883
2,467
2,743
2,588
14,736
16,070'
18,642'
19,115'
18,088'
18,533'
18,876'
18,874'
19,941
20,169
4,304
7,546
12,990
4,242
8,353
394
14,918'
5,087
8,755
1.075'
15,380'
5,836'
8,539'
1,004'
14,190'
4,732
8,570'
888'
14,604'
5,014
8,588'
1,002'
14,901'
4,991
8,836
1,075'
15,052'
5,093
8,948'
1,011'
15,979
5,393
9,272
1,315
16,315
5,635
9,644
1,036
3,080'
285
3,725'
382
3,735'
586
3,898'
484
3,930'
473
3.975'
693
3,822
502
3,962
513
3,855
474
2,531'
264
3,220'
123
2,895'
254
3,259'
154
3,226'
231
3,181'
100
3,208
112
3,337
112
3,191
190
10,799'
10,553
10,735
706
47,820
42,335
10,933
2,040
240
11,007
1. Excludes negotiable time certificates of deposit, which are included in "Other
negotiable and readily transferable instruments." Data for time deposits before
April 1978 represent short-term only.
2. Includes borrowing under repurchase agreements.
3. U.S. banks: includes amounts due to own foreign branches and foreign subsidiaries consolidated in "Consolidated Report of Condition" filed with bank regulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign
banks: principally amounts due to head office or parent foreign bank, and foreign
branches, agencies or wholly owned subsidiaries of head office or parent foreign
bank.
4. Financial claims on residents of the United States, other than long-term securities, held by or through reporting banks.
July
166,877'
Own foreign offices 3
41 Banks' own liabilities
42
Demand deposits
43 Time deposits
44
Other 2
June
126,168
36 Banks' custody liabilities4
37
U.S. Treasury and certificates
38
Other negotiable and readily transferable
instruments 6
39 Other
40 Other foreigners
1979
1978
10,974
11,773
10,500
10,433
10,704
5. Includes nonmarketable certificates of indebtedness and Treasury bills issued
to official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable time certificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks.
8. Foreign central banks and foreign central governments and the Bank for
International Settlements.
9. Excludes central banks, which are included in "Official institutions."
A58
3.16
International Statistics • February 1981
LIABILITIES TO FOREIGNERS Continued
1980
Area and country
1977
1978
1979
June
July
Aug.
Sept.
Oct.
Nov.
Dec .P
1 Total
126,168
166,877'
187,492'
186,922'
188,295'
201,402'
191,683'
195,827'
204,802
205,609
2 Foreign countries
122,893
164,270'
185,136'
183,413'
185,392'
198,582'
189,134'
193,093'
202,325
203,326
60,295
318
2,531
770
323
5,269
7,239
603
6,857
2,869
944
273
619
2,712
12,343
130
14,125
232
1,804
98
236
85.169'
513
2,550
1.946
346
9.214'
17,286
826
7,739
2.402
1,271
330
870
3,121
18,225
157
14,265
254
3,440
82
330'
90.935
413
2,375
1.092
398
10.433
12,935
635
7,782
2.327
1,267
557
1.259
2,005
17.954
120
24.694
266
4.070
52
302
82,894'
383
3,988'
553
438
11,272
6,954
626
5,778
2,676
1.282
391
1,366
1,999
14,732'
153
24,175'
254
5.473'
49
351'
83,848'
432
3,837
534
433
12.178
7.626
567
7.138
2.830
1.140
398
1.371
1.795
14,359
156
22,556'
190
6.006
36
267
86,077'
390
3.673
525
403
12.596
9.121
642
6.530
2,491
1.040
506
1,491
1,861
14.252
147
22,925
139
7,002
70
271
83,476
432
3,696
528
311
12,332
7,854
591
5.969
2.540
1.074
571
1.321
1,826
13,524
237
22,818
169
7,250
39
392
83.990'
460
3.322
493
307
11.654
7.557
643
6.796
2,555
1,381
491
1,520
1.813
13,695'
171
23.797'
203
6.880'
33
220
90,813
519
3,696
586
363
12,380
9,171
710
7,308
2,794
1,444
437
1,379
1,811
16.574
257
24.518
225
6.161
64
416
91,305
523
4,019
497
455
12,127
9,968
667
7,572
2,441
1,344
374
1,500
1,737
16,654
292
23,061
681
6,949
69
376
3 Europe
4
Austria
5
Belgium-Luxembourg
6
Denmark
/
Finland
8
France
9
Germany
10
Greece
11
Italy
12
Netherlands
13
Norway
14
Portugal
15
Spain
16
Sweden
Switzerland
17
18
Turkey
19
United Kingdom
20
Yugoslavia
21
Other Western Europe 1
22
U.S.S.R
23
Other Eastern Europe 2
24 Canada
4,607
6,969
7.379
9.157
9,228
9,187
10,234
9,992
9,871
10,025
25 Latin America and Caribbean
26
Argentina
2/
Bahamas
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
32
Colombia
33
Cuba
34
Ecuador
35
Guatemala 3
36
Jamaica 3
37
Mexico
38
Netherlands Antilles
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other Latin America and Caribbean
23,670
1,416
3,596
321
1,396
3,998
360
1,221
6
330
2,876
196
2,331
287
243
2,929
2.167
31,677'
1,484
6.752
428
1.125
6.014
398
1.756
13
322
416
52
3,467'
308
2,967
363
231
3,821
1,760
49.665'
1,582
15.255
430
1,005
11.117
468
2.617
13
425
414
76
4.185'
499
4.483
383
202
4,192
2,318
46,946'
1,705
12,886'
576
1.420'
10,285'
450
2,854
6
455
360
91
4,007'
250
4,179'
346
231'
4,709'
2,138'
49,233'
1,841
13,172'
464
1,434'
11,957'
459'
2,954'
6
346
373
137
4,268'
332
4,685
350
232'
4,350
1,874'
58,282'
1,880
21,179
559
1,378
13,309'
475
2,893
7
818
372
100
4,291'
314
4,617
401
241'
3,692
1,755
48.781'
1.875
13.924
677
1,168
11,410
431
2,916
5
381
373
101
4,226'
360
3.894
355
199
4,405
2,080
52.501'
1.996
17.567'
595
1.342
12.040'
448'
3.037
5
387
365
85
4.575
393
3.595
380
220
3.659
1.811
53,175
1,996
16,783
555
1,248
12,493
456
2,962
6
437
359
79
4,583
568
4,575
345
244
3,667
1,817
53,178
2,132
16,372
670
1.221
12,738
460
3,077
6
371
367
97
4,549
413
4,718
403
254
3,170
2,161
44
30,488
36,492
33,013'
39.432'
38,048
39,880'
41,847
40,880'
41,996
42,376
53
1,013
1,094
961
410
559
14,616
602
687
264
8,979
1,250
67
502
1,256
790
449
688
21,927
795
644
427
7,534
1.414
49
1,393
1,672
527
504
707
8.907
993
795'
277
15.309'
1,879
44
1,524
2.270
633
807
•584
12,430
1,087
848'
405
16,804'
1.997'
38
1,438
2.186
494
849
488
12,547
1,482
935
405
15.378'
1,808
37
1.552
1,994'
631
649'
569
14,059
1,473
778
304
15.801'
2,033
38
1.595
2.204
529
827
534
15,414
1,994
814
517
15,409
1.972
46
1.610
2,150'
485
811
530
15,354
1,809
838
403
14.611
2.232
62
1,636
2,410
438
715
548
15,720
1,764
800
440
15,214
2,250
49
1,662
2,550
416
730
883
16,246
1,528
917
464
14,454
2,477
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries 5
63
Other Africa
2,535
404
66
174
39
1,155
698
2.886
404
32
168
43
1,525
715
3,239
475
33
184
110
1,635
804
3,695'
326'
35
325
107
2.107'
796
3,796'
451'
33
360
78
2,094
779
4,221'
350'
47
404
38
2,685
697
3.902
322
32
354
42
2,459
694
4,246'
269
57
288
36
2,911
685
4,725
374
38
332
34
3,211
735
5,195
493
33
293
57
3,540
778
64 Other countries
65
Australia
66
Allother
1,297
1,140
158
1,076
838
239
904
684
220
1,290
1,019
271
1,239
959
281
936
692
243
894
613
281
1.484
1,190
294
1,746
1,413
333
1,247
950
297
67 Nonmonetary international and regional
organizations
68
International
69
Latin American regional
70
Other regional 6
3,274
2,752
278
245
2,607
1,485
808
314
2,356'
1,238
806
313'
3.509'
2.394
807
307'
2.903
1,804
785
314
2,820
1,736
800
285
2,549
1.389
837
323
2.734
1,586
841
307
2,476
1,366
801
309
2,283
1,156
832
296
45
46
47
48
49
50
51
52
53
54
55
56
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle-East oil-exporting countries 4
Other Asia
1. Includes the Bank for International Settlements. Beginning April 1978. also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Democratic Republic, Hungary, Poland, and Romania.
3. Included in "Other Latin America and Caribbean" through March 1978.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar. Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Asian, African, Middle Eastern, and European regional organizations, except
the Bank for International Settlements, which is included in "Other Western
Europe."
Nonbank-Reported
3.17
Data
A59
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1980
Area and country
1977
1979
1978
June
July
Aug.
Sept.
Oct.
Nov.
Dec.P
1 Total
90,206
115,603
133,919'
149,513'
151,218'
163,401'
161,518
162,658'
167,365
173,662
2 Foreign countries
90,163
115,547
133,887'
149,479'
151,187'
163,363'
161,484
162,618'
167,331
173,592
18,114
65
561
173
172
2,082
644
206
1,334
338
162
175
722
218
564
360
8,964
311
86
413
566
24,232
140
1,200
254
305
3,735
845
164
1,523
677
299
171
1,120
537
1,283
300
10,172
363
122
366
657
28.429'
284
1,339
147
202
3,322'
1,179
154
1,631
514
276
330
1,051
542
1,165
149
13,814'
611
175
290
1,254
29,440'
305
1,866
167
307
2,687'
1,143'
346
1.940
590
219
300
1,189
677
1,237
144
13,762'
658
203
289
1,412'
28,439
309
1,622
149
223
2,582
1.004
279
2,295
492
270
346
1,011
534
1,319
143
13.175
648
170
531
1,336
29,411'
280
1,881
164
215
3,288
1,131
265
2,433
632
231
335
1,139
558
1,581
137
12,651'
647
172
232
1,438
29,259'
196
1.680
132
253
2.551
987
278
2,842'
557
335
341
1,113
763'
1,564'
123'
12,950'
684
226
257
1,427
32,498
250
1,946
165
248
3,301
1,506
265
3,062
749
138
393
1,094
633
1,932
149
13,885
689
234
271
1,389
32,075
236
1,619
127
460
2,962
946
256
3,363
575
227
331
993
783
1,446
145
14,835
852
179
281
1,460
3 Europe
4
Austria
5 Belgium-Luxembourg
6
Denmark
7 Finland
8 France
9
Germany
10 Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
21
Other Western Europe 1
22
U.S.S.R
23 Other Eastern Europe 2
29,722'
264
1,954
180
184
3,232
1.018
221
2.560
546
248
330
1,106
716
1,337
144
13,080'
682
245
241
1,434
3,355
5,152
4,143
5,272
4,654
4,775
5,255
4,614
4,542
4,810
25 Latin America and Caribbean
Argentina
26
27
Bahamas
28 Bermuda
29
Brazil
30
British West Indies
31 Chile
32
Colombia
33 Cuba
34
Ecuador
Guatemala 3
35
36 Jamaica 3
37
Mexico
Netherlands Antilles
38
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other Latin America and Caribbean
45,850
1,478
19,858
232
4,629
6,481
675
671
10
517
4,909
224
1,410
962
80
2,318
1,394
57,567
2,281
21,555
184
6,251
9,692
970
1,012
0
705
94
40
5.479
273
3.098
918
52
3,474
1,490
68,011
4,389
18,918
496
7,720
9,822
1,441
1,614
4
1,025
134
47
9,099
248
6.031
652
105
4,669
1,598
74.090'
5,226
25,101'
175
8.294'
8.689'
1,368'
1,435
4
1,058
120
36
10,197'
728
4,952
711
103
4,317'
1,576
78,690'
5,234
28,710
194
8,989'
8,637
1,359
1,448
4
1,051
153
31
10,660
760
4,552
647
91
4,469
1,700
89,253'
5,393
31,866
256
9,251'
14.570
1,487
1,490
3
1,136
102
31
10,785'
725'
4,931
687
105
4.737
1,697
85,768'
5,629
30,269'
216
9,639
11,980
1,627
1.493
6
1,111
105
33
11,123
710
4,461
671
100
4,879
1,715
87,665'
5,859
30,275'
399
10,135
12,630'
1,721
1.575
3
1.157
112
35
11,745
799
3.972
719
100
4,710'
1.721'
89,263
6,270
29,679
260
9,989
13,651
1,730
1,582
3
1,157
114
40
12,014
816
4,367
749
105
5,113
1,625
93,769
5,692
29,349
243
10,474
15,628
1,939
1,768
3
1,186
137
36
12,590
820
5,853
891
137
5,438
1,584
44 Asia
China
Mainland
45
Taiwan
46
47
Hong Kong
48
India
49
Indonesia
50
Israel
51 Japan
52
Korea
53 Philippines
54 Thailand
55
Middle East oil-exporting countries 4
56
Other Asia
19,236
25,386
30,652'
37,604'
36,282'
36,927'
37,620
37,806'
37,952
39,398
10
1,719
543
53
232
584
9,839
2,336
594
633
1,746
947
4
1,499
1.479
54
143
888
12,671
2,282
680
758
3,125
1,804
35
1,821
1,804
92
131
990
16,946'
3.798'
737
935
1.548
1,813
75
2,105'
2,271'
83
155
1.028
21.902'
5.420'
780
927'
1.261'
1.597'
68
2,224
2,174
97
205
950
20,595'
5,523'
881
939
1,120
1,506
50
2,284
2,063
118
245
1,012
21,205'
5,464'
1,019
947
1,040
1.480
117
2,492
2,099
84
208
918
20,663
5,574
1,169
947
1.471
1,876
126
2,332
1,980
103
214
1.055
20,607'
5,885
1,081
925
1.258'
2.240
187
2,382
2,093
125
248
1,127
20,320
5,842
1,120
969
1,538
1,999
195
2,469
2,193
196
245
1,172
21,608
5,620
986
876
1,555
2,284
57 Africa
Egypt
58
59 Morocco
60
South Africa
61
Zaire
Oil-exporting countries 5
62
Other
63
2,518
119
43
1,066
98
510
682
2,221
107
82
860
164
452
556
1,797
114
103
445
144
391
600
2.016
95
121
616
107
364
714
2,179'
112
134
691
107
378'
757
1,977
135
180
469
98
349
746
2,029
123
166
535
101
374
729
2,090
159
119
440
123
469
780
1,933
165
146
375
98
402
747
2.375
150
223
370
94
805
733
64 Other countries
65
Australia
Allother
66
1,090
905
186
988
877
111
855
673
182
1,056
860
196
943
743
200
1,021
793
228
1,091
879
213
1,185
942
243
1,143
915
228
1,165
859
306
43
56
32
34
31
38
34
40
34
70
24 Canada
67 Nonmonetary international and regional
organizations 6
1. Includes the Bank for International Settlements. Beginning April 1978. also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Democratic Republic, Hungary, Poland, and Romania.
3. Included in "Other Latin America and Caribbean" through March 1978.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria. Gabon. Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in "Other
Western Europe."
NOTE. Data for period prior to April 1978 include claims of banks' domestic
customers on foreigners.
A60
3.18
International Statistics • February 1981
BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
Millions of dollars, end of period
1980
Type of claim
1977
1979
1978
June'
1 Total
2
3
4
5
6
7
8
9
10
11
12
90,206
Banks' own claims on foreigners
Foreign public borrowers
Own foreign offices 1
Unaffiliated foreign banks
Deposits
Other
All other foreigners
Claims of banks' domestic customers 2
Deposits
Negotiable and readily transferable instruments 3
Outstanding collections and other claims 4
..
6,176
13 MEMO: Customer liability on acceptances
Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United
States 5
Aug.
Sept.'
Oct.
126,851
154,017'
174,693
115,603
10,312'
41,628
40,496'
5,428
35,067'
23,167
133,919'
15,580'
47,475'
40,969'
6,253'
34,716'
29,896'
149,513
15,844
56.328
43,768
6,511
37,258
33,573
11,248
480
5,414
5,353
20,098
955
13,124
6,019
25,181
910
17,470
6,800
25,490
1,081
15,260
9,148
14,969
18,058
22,284
23,533
13,162'
21,578'
23,216
Nov.
Dec/'
167,365
20,603
62,389
48,902
7,579
41,323
35,472
173,662
20,472
66,072
50,151
8,286
41,865
36,967
187,008
151,218'
16,659'
58,520'
42,007
6,165'
35,842'
34,032'
25,416'
163,401'
17,419'
64,051'
47,500'
7,250'
40,250'
34,431'
161,518
18,969
61,879
46,008
7,216
38,792
34,661
24,140'
21,964
162.658'
19,046'
61,613'
46,574'
7,136'
39,438'
35,425'
22,617
24,399
NOTE: Beginning April 1978. data for banks' own claims are given on a monthly
basis, but the data for claims of banks' own domestic customers are available on
a quarterly basis only.
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1979
1978
1980
Maturity; by borrower and area
Sept.
1 Total
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
By borrower
Maturity of 1 year or less1
Foreign public borrowers . . . .
All other foreigners
Maturity of over 1 year 1
Foreign public borrowers . . . .
All other foreigners
By area
Maturity of 1 year or less1
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 2
Maturity of over 1 year 1
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 2
1. Remaining time to maturity.
2. Includes nonmonetary international and regional organizations.
n.a.
4. Data for March 1978 and for period prior to that are outstanding collections
only.
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. U.S. banks: includes amounts due from own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign
banks: principally amounts due from head office or parent foreign bank, and foreign
branches, agencies, or wholly owned subsidiaries of head office or parent foreign
bank.
2. Assets owned by customers of the reporting bank located in the United States
that represent claims on foreigners held by reporting banks for the account of their
domestic customers.
3. Principally negotiable time certificates of deposit and bankers acceptances.
3.19
July
73,771
77,740'
87,580
58,481
4,583
53,898
15,289
5,361
9,928
60,076'
4,658'
55,418'
17,664
6,433
11,231
68,404
6,142'
15,176
2,670
20,990
17.579
1.496
569
14.033
2,703
23,148
18,191
1,438
565
16,799
2,471
25,690
21,519
1,401
524
15,254'
1,777
24,974
21,673'
3.142
1,426
8,464
1,407
637
214
3,483
3,653
1,364
11,771
1,578
623
4.140
1,317
12,821
1,911
652
169
1,221
10,279
1.884
614
183
62,262'
19,176
7,652
11,524
188
92,748
65,251'
7,127'
58,125'
21,009
8,114
12,895
1,080
493
63,868'
6,778'
57,090'
21,359
8,430
12.929
71,368'
7,089'
64,279'
21,380
8,515'
12,865'
13,844
17,141'
2,013
24,417'
25.753'
1.320
724
1,818
23.178
23,358'
1.043
627
4.248
1,214
13,397
1,728
620
152
4.033
1.199
13.902
1,524
576
146
Nonbank-Reported
3.20
Data
A61
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks*
Billions of dollars, end of period
19782
Area or country
1976
1980
1979
1977
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
June
Sept.P
1 Total
206.8
240.0
247.5
266.3
264.0
275.6
294.0
303.8
307.6
328.2
338.5
2 G-10 countries and Switzerland
3
Belgium-Luxembourg
4
France
5
Germany
6
Italy
7
Netherlands
100.3
6.1
10.0
8.7
5.8
2.8
1.2
3.0
41.7
5.1
15.9
116.4
8.4
11.CI
9.6
6.5
3.5
1.9
3.6
46.5
6.4
18.8
113.5
8.4
11.7
9.7
6.1
3.5
2.2
4.3
44.2
4.9
18.5
124.8
9.0
12.2
11.3
6.7
4.4
2.1
5.4
47.3
6.0
20.6
119.1
9.4
11.7
10.5
5.7
3.9
2.0
4.5
46.4
5.9
19.0
125.3
9.7
12.7
10.8
6.1
4.0
2.0
4.8
50.3
5.5
19.5
135.8
10.7
12.0
12.8
6.1
4.7
2.3
5.0
53.7
6.0
22.3
138.4
11.1
11.6
12.2
6.4
4.8
2.4
4.8
56.4
6.3
22.4
140.4
10.8
12.0
11.4
6.2
4.3
2.4
4.4
57.6
6.8
24.7
154.4
13.1
14.1
12.7
6.9
4.5
2.7
3.4
64.7
7.2
25.2
159.7
13.6
13.9
12.9
7.2
4.4
2.8
3.5
67.3
7.9
26.2
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
15.0
1.2
1.0
1.1
1.7
1.5
.4
2.8
1.3
.7
2.2
1.2
18.6
1.3
1.6
1.2
2.2
1.9
.6
3.6
1.5
.9
2.4
1.4
18.7
1.5
1.9
1.0
2.2
2.1
.5
3.5
1.5
1.0
2.2
1.3
19.4
1.7
2.0
1.2
2.3
2.1
.6
3.5
1.5
1.3
2.0
1.4
18.2
1.7
2.0
1.2
2.3
2.1
.6
3.0
1.4
1.1
1.7
1.3
18.2
1.8
1.9
1.1
2.2
2.1
.5
3.0
1.4
.9
1.8
1.4
19.7
2.0
2.0
1.2
2.3
2.3
.7
3.3
1.4
1.5
1.7
1.3
19.9
2.0
2.2
1.2
2.4
2.3
.7
3.5
1.4
1.4
1.3
1.3
18.8
1.7
2.1
1.1
2.4
2.4
.6
3.5
1.4
1.4
1.1
1.2
20.3
1.8
2.2
1.3
2.5
2.4
.6
3.9
1.4
1.6
1.5
1.2
20.4
1.7
2.3
1.2
2.6
2.4
.6*
4.2
1.3
1.7
1.2
1.2
25 OPEC countries 3
26 Ecuador
27 Venezuela
28
Indonesia
29 Middle East countries
30 African countries
12.6
.7
4.1
2.2
4.2
1.4
17.6
1.1
5.5
2.2
6.9
1.9
20.4
1.6
6.2
1.9
8.7
2.0
22.7
1.6
7.2
2.0
9.5
2.5
22.6
1.5
7.2
1.9
9.4
2.6
22.7
1.6
7.6
1.9
9.0
2.6
23.4
1.6
7.9
1.9
9.2
2.8
22.9
1.7
8.7
1.9
8.0
2.6
21.8
1.8
7.9
1.9
7.8
2.5
20.9
1.8
7.9
1.9
6.9
2.5
21.2
1.9
8.3
1.9
6.7
2.4
31 Non-OPEC developing countries
44.2
48.7
49.6
52.6
53.9
55.9
58.8
62.8
63.7
67.5
72.8
1.9
11.1
.8
1.3
11.7
1.8
2.8
2.9
12.7
.9
1.3
11.9
1.9
2.6
2.9
14.0
1.3
1.3
10.7
1.8
3.4
3.0
14.9
1.6
1.4
10.8
1.7
3.6
3.1
14.9
1.7
1.5
10.9
1.6
3.5
3.5
15.1
1.8
1.5
10.7
1.4
3.3
4.1
15.1
2.2
1.7
11.4
1.4
3.6
5.0
15.2
2.5
2.2
12.0
1.5
3.7
5.5
15.0
2.5
2.1
12.1
1.3
3.6
5.6
15.3
2.7
2.2
13.6
1.4
3.6
7.5
15.8
3.2
2.3
14.4
1.5
3.9
9
10
11
12
Switzerland
United Kingdom
Canada
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)
Malaysia4
Philippines
Thailand
Other Asia
0
2.4
.2
1.0
3.1
.5
2.2
.7
.5
.0
3.1
.3
.9
3.9
.7
2.5
1.1
.4
.0
2.4
.3
.7
3.5
.6
2.8
1.1
.3
.0
2.9
.2
1.0
3.9
.6
2.8
1.2
.2
.1
3.1
.2
1.0
4.2
.6
3.2
1.2
.3
.1
3.3
.2
.9
5.0
.7
3.7
1.4
.4
.1
3.5
.2
1.0
5.3
.7
3.7
1.6
.3
.1
3.4
.2
1.3
5.5
.9
4.2
1.6
.4
.1
3.6
.2
.9
6.5
.8
4.4
1.4
.4
.1
3.7
.2
1.2
7.1
.9
4.6
1.5
.5
.1
4.1
.2
1.1
7.3
.9
4.8
1.5
.5
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 5
.4
.3
.2
1.2
.3
.5
.3
.7
.4
.5
.2
1.3
.4
.6
.2
1.4
.5
.6
.2
1.4
.7
.5
.2
1.5
.6
.5
.2
1.6
.6
.6
.2
1.7
.7
.5
.2
1.8
.7
.5
.2
1.8
.7
.6
.2
2.0
5.2
1.5
.8
2.9
6.3
1.6
1.1
3.7
6.6
1.4
1.3
3.9
6.9
1.3
1.5
4.1
6.7
1.1
1.6
4.0
6.7
.9
1.7
4.1
7.2
.9
1.8
4.6
7.3
.7
1.8
4.8
7.3
.6
1.9
4.9
7.2
.5
2.1
4.6
7.3
.5
2.1
4.7
24.7
10.1
.5
3.8
.6
3.0
.1
2.2
4.4
.0
26.1
9.9
.6
3.7
.7
3.1
.2
3.7
3.7
.5
30.1
11.5
.7
6.7
.6
3.1
.1
4.0
2.9
.5
30.9
10.4
.7
7.4
.8
3.0
.1
4.2
3.9
.5
33.7
12.3
.6
7.1
.8
3.4
.1
4.8
4.2
.4
37.0
14.4
.7
7.4
1.0
3.8
.1
4.9
4.2
.4
38.6
13.0
.7
9.5
1.1
3.4
.2
5.5
4.9
.4
40.4
13.7
.8
9.4
1.2
4.3
.2
6.0
4.5
.4
42.6
14.0
.6
11.3
.9
4.9
.2
5.7
4.7
.4
43.8
13.6
.6
9.5
1.1
5.6
.2
6.9
5.9
.4
43.7
12.6
.6
10.1
1.3
5.7
.2
7.3
5.6
.4
5.0
5.3
8.6
9.1
9.5
9.9
10.6
11.7
13.1
14.3
13.7
52 Eastern Europe
54
55
Yugoslavia
Other
56 Offshore banking centers
57 Bahamas
58 Bermuda
59 Cayman Islands and other British West Indies
60 Netherlands Antilles
61 Panama 6
62
Lebanon
63 Hong Kong
64
Singapore
65 Others 7
66 Miscellaneous and unallocated 8
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 3.13 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.17 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches). However,
see also footnote 2.
2. Beginning with data for June 1978, the claims of the U.S. offices
in this table include only banks' own claims payable in dollars. For earlier dates
the claims of the U.S. offices also include customer claims and foreign currency
claims (amounting in June 1978 to $10 billion).
3. In addition to the Organization of Petroleum Exporting Countries shown
individually, this group includes other members of OPEC (Algeria, Gabon, Iran,
Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates)
as well as Bahrain and Oman (not formally members of OPEC).
4. Foreign branch claims only through December 1976.
5. Excludes Liberia.
6. Includes Canal Zone beginning December 1979.
7. Foreign branch claims only.
8. Includes New Zealand, Liberia, and international and regional organizations.
A62
International Statistics • February 1981
MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions
3.21
Millions of dollars
1980
Country or area
1978
1980
1979
Jan.Dec.
June
July
Aug.
Holdings (end of period)
Sept.
Oct.
Nov.
Dec .P
1
1 Estimated total2
44,946
51,344'
54,195'
54,884'
54,120'
55,869'
56,553'
57,217
57,416
2 Foreign countries 2
39,817
45.915'
49,795'
50,590'
49,992'
51,173'
52,075'
52,867
52,828
3 Europe 2
Belgium-Luxembourg
4
5
Germany 2
6
Netherlands
7
Sweden
8
Switzerland2
9
United Kingdom
10 Other Western Europe
11 Eastern Europe
12 Canada
17,072
19
8,705
1,358
285
977
5,373
354
0
152
24,824'
60
14,056'
1,466
647
1,868
6,236
491
0
232
25,479'
28
14,095'
1,437
647
1,731
6,984'
556
25,259'
45
13,697'
1,547
650
1,675
7,074'
571
0
481
24,643'
89
13,097'
1.522
640
1,675
7,089'
531
0
469
25,016'
91
13,110
1,640
611
1,566
7,456
542
0
480
24.783'
78
12,823'
1,658
607
1.517
7,538'
562
0
503
24,708
74
12,758
1,777
614
1,489
7,411
584
0
532
24,334
77
12,335
1,884
595
1,485
7,180
777
0
449
13
14
15
16
17
18
19
20
416
144
110
162
21,488
11,528
691
-3
466
103
200
163
19,805
11.175
591
-3
616
200
215
200
22,791'
9,545
492
-6
690
248
242
200
23,575'
9,614
592
-6
706
261
240
205
23,585'
9,465
592
-5
768
302
241
225
24,292'
9,444
617
0
768
292
255
221
25,331'
9,503
685
5
942
292
278
372
25,966
9,547
715
4
999
292
285
421
26,110
9,479
922
14
21 Nonmonetary international and regional
organizations
5,129
5,429
4,400'
4,294
4.128'
4,696
4,478'
4,350
4,588
22
23
5,089
41
5,388
37
4.338
60
4,234
60
4,066
60
4,632
65
4,430
44
4,302
44
4,548
36
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
All other
International
Latin American regional
423
Transactions (net purchases, or sales ( - ) during period)
24 Total2
6,305
6,397'
6,072
1,757
692
-767
1,752
681
665
199
25 Foreign countries2
26
Official institutions
27
Other foreign 2
5,921
3,729
2,193
6,099'
1.697
4,403'
6,913
3,841
3,073
1,820
1.716
104
795
762
33
-598
-745
146
1.181
998
183
903
664
240
792
302
490
-39
-334
295
383
301
-844
-63
-104
-168
571
-222
-127
237
-1,785
329
-1,014
-100
7,672
330
1.427
-100
598
100
140
0
601
25
990
68
561
30
358
207
28 Nonmonetary international and regional
organizations
MEMO; Oil-exporting countries
29 Middle East 3
30 Africa 4
2. Beginning December 1978. includes U.S. Treasury notes publicly issued to
private foreign residents denominated in foreign currencies.
3. Comprises Bahrain, Iran. Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
1. Estimated official and private holdings of marketable U.S. Treasury securities
with an original maturity of more than 1 year. Data are based on a benchmark
survey of holdings as of Jan. 31, 1971, and monthly transactions reports. Excludes
nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign
countries.
3.22
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1980
Assets
1977
1978
July
1 Deposits
Assets held in custody
2 U.S. Treasury securities1
3 Earmarked gold2
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.P
424
367
429
436
336
460
368
368
411
573
91,962
15,988
117,126
15,463
95,075
15,169
95,525
15,034
96,504
15,025
96.227
14,987
98,121
14,986
102,786
14,968
102,417
14,965
104,490
14,893
1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies.
2. The value of earmarked gold increased because of the changes in par value
of the U.S. dollar in May 1972 and in October 1973.
1981
1979
NOTE. Excludes deposits and U.S. Treasury securities held for international and
regional organizations. Earmarked gold is gold held for foreign and international
accounts and is not included in the gold stock of the United States,
Investment Transactions
3.23
A63
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1980
1980
11-RA
Transactions, and area or country
Jan.Dec.
June
July
Aug.
Sept.
Oct.
Dec.A>
Nov.
U.S. corporate securities
STOCKS
1 Foreign purchases
2 Foreign sales
20,145
17,723
22,781'
21,123'
40,320
35,044
2,559'
2,400'
3,110'
2,800'
3.505
3,301
3,569
3,329
4,438
3,920
4,457
3,588
4,345
3,783
3 Net purchases, or sales ( - )
2,423
1,658'
5,276
159'
310'
203
241
519
869
562
4 Foreign countries
2,469
1,642'
5,258
161'
308'
205
246
524
867
540
1,283
47
620
-22
-585
1,230
74
151
781
189
-13
3
217
122
-221
-71
-519
964
552
-19
688'
211
-14
7
3,036
479
184
-328
308
2,502
847
143
1,209
-7
-1
30
56
9
115
62
-13
-27
-82
188
81
-25
141'
-5
-1
2
42
30
-21
-26
-127
216
13
-32
183
-22
0
21
-83
-33
-18
-38
-122
153
-22
-83
410
19
2
4
300
53
35
-29
83
172
-66
132
126
33
2
-3
633
109
121
-58
265
251
263
57
-109
18
0
5
222
57
7
-17
-88
299
230
-12
181
-72
-2
-6
-46
17
18
-2
2
-2
-5
-6
2
22
5
6
7
8
9
10
11
12
13
14
15
16
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
17 Nonmonetary international and regional
organizations
-5
-25
-19
99
24
27
19'
28
_2
8
BONDS 2
18 Foreign purchases
19 Foreign sales
7,897'
5,679'
8,803'
7,608'
15,356
9,968
1,834
1,152
1,695
898
1,087
589
645
481
1,612
739
1,181
902
946
826
20 Net purchases, or sales ( - )
2,218'
1,195'
5,387
682
797
498
165
873f
278
121
21 Foreign countries
1,878
1,330
5,454
625
769
475
214
918
283
108
22
23
24
25
26
27
28
29
30
31
32
33
736
30
-2
12
-202
930
102
98
810
131
-1
1
626
11
58
-202
-118
814
80
109
424
88
1
1
1,585
143
213
-65
54
1,252
135
186
3,416
117
5
10
105
12
- 14
6
-10
110
5
23
483
5
0
4
129
8
-50
-26
-16
196
-2
29
600
13
0
1
27
6
-11
-7
-9
53
25
32
382
9
0
0
-23
-2
4
7
0
-5
12
18
194
14
0
-2
284
16
30
8
1
235
9
7
594
24
0
0
151
12
13
-7
8
154
21
11
105
-3
0
-1
-26
12
22
17
14
-113
-7
-4
113
32
0
0
341'
-134'
-66
57
28
23
-49
-45
-4
13
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
34 Nonmonetary international and regional
organizations
Foreign securities
35 Stocks, net purchases, or sales ( - )
36
Foreign purchases
37
Foreign sales
527
3,666
3,139
38 Bonds, net purchases, or sales ( - )
39
Foreign purchases
40
Foreign sales
-4,185
11,098
15,283
41 Net purchases, or sales ( - ) , of stocks and bonds
42
43
44
45
46
47
48
Foreign countries
Europe
Canada
Latin America and Caribbean
Asia
Africa
Other countries
49 Nonmonetary international and regional
organizations
..
-786
4.615
5.401
-2,239
7,870
10,108
-174'
495'
669'
-76
654
731
-201
605
805
-558
694
1,253
-335
788
1,143
129
927
798
-68
721
788
-3,855'
12,672'
16,527'
-835
17,062
17,898
-620'
1,638'
2,258'
374
1.725
1,351
-259
1.374
1,634
-84
1,231
1,316
-206
1,651
1,857
91
1,252
1,161
274
1,786
1,512
-3,658
-4,641'
-3,074
-794'
298
-460
-643
-561
219
206
-3,471
-61
-3,229
221
186
-441
-146
-3,891'
-1,646
-2.601
347'
44'
-61'
25
-3,950
-958
-2,094
126
-1,131
24
81
-813'
-481'
-288'
-25'
-66'
5'
44
-32
10
-29
34
-55
1
7
-384
-176
42
-14
-313
0
76
-680
-110
-344
7
-223
-4
-6
-576
113
-651
-35
-16
29
-16
196
-30
327
-24
-73
-1
-3
-177
-86
24
-11
-84
-13
-7
876
19
330
-76
37
15
23
383
-187
-750
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 securities sold
abroad by U.S. corporations organized to finance direct investments abroad.
A64
International Statistics • February 1981
3.24
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States'
Millions of dollars, end of period
1979
Type, and area or country
1978
1980
1979
June
Sept.
Dec.
Mar.
June.
Sept .P
1 Total
14,879
16,950
15,519
15,700
16,950
17,373
18,472
18,406
2 Payable in dollars
3 Payable in foreign currencies 2
11.516
3.363
13,932
3,018
12,631
2,888
12,692
3,008
13.932
3,018
14.437
2,936
15,105
3,366
15,203
3,203
By type
4 Financial liabilities
5
Payable in dollars
6
Payable in foreign currencies
6.305
3,841
2,464
7,311
5,101
2,210
6,049
3,876
2,173
6,131
3,877
2,254
7,311
5,101
2,210
7,802
5,618
2,184
8,307
5,751
2,556
8,125
5,707
2,418
7 Commercial liabilities
8 Trade payables
9 Advance receipts and other liabilities
8,574
4,008
4,566
9,639
4,380
5,258
9,470
4,302
5,168
9,568
4,051
5,518
9,639
4,380
5,258
9,571
4,138
5,433
10,165
4,265
5,899
10,281
4,370
5,911
7,675
899
8,830
808
8,755
715
8,815
754
8,830
808
8,819
752
9,355
810
9,496
785
3,903
289
167
366
390
248
2,110
4,579
345
168
497
834
168
2,372
3,582
355
134
283
401
235
1,955
3,713
317
126
381
542
190
1,957
4,579
345
168
497
834
168
2,372
4,813
360
188
520
801
172
2,568
5,392
422
341
657
783
238
2,783
5,214
404
327
557
766
224
2,761
10
11
12
13
14
15
16
17
18
Payable in dollars
Payable in foreign currencies
By area or country
Financial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
19
Canada
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
27
28
29
30
31
32
33
34
35
36
37
38
39
Japan
Middle East oil-exporting countries 3
244
445
290
304
445
383
482
456
1,357
478
4
10
194
102
49
1,483
375
81
18
514
121
72
1,395
477
2
19
189
131
68
1,347
390
2
14
198
122
71
1.483
375
81
18
514
121
72
1,764
459
83
22
694
101
70
1,633
434
2
25
700
101
72
1,718
412
1
20
685
108
74
791
714
32
795
723
31
772
706
25
757
700
19
795
723
31
821
737
26
775
680
31
705
615
37
5
2
4
1
6
2
5
1
4
1
11
1
10
1
11
1
5
4
5
5
4
10
15
21
3,033
75
321
529
246
302
824
3,621
137
467
534
227
310
1,073
3,303
81
353
471
230
439
997
3,393
103
394
539
206
348
1,015
3.621
137
467
534
227
310
1.073
3,682
117
503
533
288
382
994
4,008
132
485
714
245
462
1,120
4,010
107
486
670
272
451
1,024
Africa
Oil-exporting countries 4
Allother
5
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
40
Canada
667
868
663
717
868
720
591
590
41
42
43
44
45
46
47
Latin America
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
997
25
97
74
53
106
303
1,323
69
32
203
21
257
301
1.335
65
82
165
121
216
323
1,401
89
48
186
21
270
359
1,323
69
32
203
21
257
301
1,253
4
47
228
20
235
211
1,271
26
107
151
37
272
210
1,361
8
114
156
12
324
293
2,932
448
1,523
2,865
488
1,017
3,034
516
1,225
2,996
517
1,070
2,865
488
1,017
2,912
578
901
3,053
411
1,019
2,889
492
937
743
312
728
384
891
410
775
370
728
384
742
382
875
498
1,036
633
203
233
243
287
233
263
367
396
48
49
50
51
52
53
Japan
Middle East oil-exporting countries 3
Africa
Oil-exporting countries 4
Allother
5
1. For a description of the changes in the International Statistics tables, see July
1979 BULLETIN, p. 550.
2. Before December 1978, foreign currency data include only liabilities denominated in foreign currencies with an original maturity of less than one year.
3. Comprises Bahrain, Iran, Iraq. Kuwait, Oman, Qatar. Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Includes nonmonetary international and regional organizations.
Nonbank-Reported Data
3.25
CLAIMS ON UNAFFILIATED FOREIGNERS
United Statesi
A65
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1980
1979
Type, and area or country
1979
1978
Sept.
June
Dec.
Mar.
June'
Sept .P
1 Total
27,859
30,859
30,296
30,949
30,859
31,953
31,850
31,374
2 Payable in dollars
3 Payable in foreign currencies 2
24.861
2.998
27.703
3.156
27,394
2,902
28,280
2,668
27,703
3.156
28,956
2,997
28,808
3,042
28,240
3,134
Bv type
4 Financial claims
5
Deposits
6
Payable in dollars
7
Payable in foreign currencies
Other financial claims
8
9
Payable in dollars
10
Payable in foreign currencies
16,522
11,062
10.000
1.061
5.461
3,855
1,606
18.107
12.461
11,572
889
5,646
3,792
1,854
19,303
13,643
12,706
938
5,660
4,059
1.601
19,176
13,730
12,830
901
5,446
4,030
1,416
18,107
12,461
11,572
889
5,646
3,792
1,854
19,237
13,563
12.601
963
5.673
4.046
1.627
18,499
12,658
11,778
879
5,841
4,103
1,737
18,164
12,099
11,018
1,081
6,065
4,395
1,670
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
11.337
10.778
559
12,752
12,064
688
10,993
10,364
628
11.773
11.061
712
12,752
12,064
688
12,716
12,071
645
13,352
12,656
695
13,210
12,521
689
14
15
11,006
331
12,339
413
10,629
363
11.421
352
12,339
413
12,309
407
12,926
425
12,827
383
5.218
48
178
510
103
98
4,023
6,115
32
177
407
53
73
5,053
5,638
54
183
361
62
81
4,650
6,562
33
191
393
51
85
5,522
6,115
32
177
407
53
73
5,053
5,826
19
290
298
39
89
4,778
5,835
23
307
190
37
96
4,855
5,576
14
381
168
30
41
4,546
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
Bv area or countrv
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
4,482
4,812
5,146
4,767
4,812
4,882
4,778
4,798
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
5,665
2,959
80
151
1,288
163
150
6,190
2,680
30
163
2,001
158
133
7,433
3,637
57
141
2,407
159
151
6,682
3,284
31
133
1.838
156
139
6,190
2,680
30
163
2,001
158
133
7,512
3,448
34
128
2,591
169
132
6,807
2,962
25
120
2,393
178
139
6,671
2.757
65
116
2,283
192
128
31
32
33
Asia
Japan
Middle East oil-exporting countries 3
922
307
18
693
190
16
800
217
17
818
222
21
693
190
16
708
226
18
758
253
16
792
269
20
34
35
Africa
Oil-exporting countries 4
181
10
253
49
227
23
277
41
253
49
265
40
256
35
260
29
36
All other 5
55
44
61
69
44
43
65
68
3,985
144
609
399
267
198
827
4,895
203
727
584
298
269
905
3,833
170
470
421
307
232
731
4,127
179
518
448
262
224
818
4.895
203
727
584
298
269
905
4,751
208
703
515
347
349
924
4,820
255
662
504
297
429
908
4,610
227
698
561
287
332
979
37
38
39
40
41
42
43
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
1.096
843
1.106
1.164
843
862
895
926
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2.547
109
215
629
9
506
292
2,853
21
197
647
16
698
342
2,406
98
118
503
25
584
296
2.595
16
154
568
13
648
346
2.853
21
197
647
16
698
342
2,990
19
135
656
11
833
349
3,281
19
133
697
9
921
394
3,351
53
81
709
17
973
384
52
53
54
Asia
Japan
Middle East oil-exporting countries 3
3.082
976
717
3,365
1,127
766
2.967
1.005
685
3.116
1.128
701
3,365
1,127
766
3,370
1,209
718
3,540
1,130
829
3,361
1,065
829
55
56
Africa
Oil-exporting countries 4
447
136
556
133
487
139
549
140
556
133 ,
518
114
567
115
699
135
57
All other 5
179
240
194
220
240
225
249
264
1. For a description of the changes in the International Statistics tables, see July
1979 BULLETIN, p. 550.
2. Prior to December 1978, foreign currency data include only liabilities denominated in foreign currencies with an original maturity of less than one year.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria. Gabon, Libya, and Nigeria.
5. Includes nonmonetary international and regional organizations.
A66
3.26
International Statistics • February 1981
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Rate on Jan. 31, 1981
Rate on Jan. 31, 1981
Country
Argentina
Austria ..
Belgium ..
Brazil
Canada ..
Denmark .
Percent
Month
effective
137.01
6.75
12.0
40.0
17.11
Dec. 1980
Mar. 1980
July 1980
June 1980
Jan. 1981
Oct. 1980
11.00
Country
France
Germany, Fed. Rep. of
Italy
Japan
Netherlands
Norway
NOTE. Rates shown are mainly those at which the central bank either
discounts or makes advances against eligible commercial paper and/or
government securities for commercial banks or brokers. For countries with
3.27
Rate on Jan. 31, 1981
Country
Percent
Month
effective
9.5
7.5
16.5
7.25
8.0
9.0
Aug. 1977
May 1980
Sept. 1980
Nov. 1980
Oct. 1980
Nov. 1979
Sweden
Switzerland
United Kingdom
Venezuela
Percent
Month
effective
12.0
3.5
14.0
10.0
Jan. 1981
Feb. 1981
Nov. 1980
July 1980
more than one rate applicable to such discounts or advances, the rate
shown is the one at wlhich it is understood the central bank transacts the
largest proportion of its credit operations.
FOREIGN SHORT-TERM INTEREST RATES
Percent per annum, averages of daily figures
1980
Country, or type
1978
1979
July
1
2
3
4
5
6
7
8
9
10
Eurodollars
United Kingdom
Canada
Germany
Switzerland
Netherlands
France
Italy
Belgium
Japan
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
8.74
9.18
8.52
3.67
0.74
11.96
13.60
11.91
6.64
2.04
14.00
16.59
13.12
9.45
5.79
9.33
15.82
10.91
9.59
5.29
10.82
16.45
10.47
8.93
5.52
12.07
15.89
10.73
8.90
5.57
13.55
15.87
11.71
8.99
5.40
16.46
15.84
12.96
9.37
5.53
19.47
14.64
16.83
10.11
6.61
18.07
14.20
16.98
9.41
5.68
6.53
8.10
11.40
7.14
4.75
9.33
9.44
11.85
10.48
6.10
10.60
12.18
17.50
14.06
11.45
10.06
11.87
17.49
13.30
12.89
9.97
11.20
17.30
12.52
12.04
10.31
11.81
17.50
12.35
11.46
9.63
11.69
18.16
12.24
10.98
9.59
11.26
17.51
12.40
9.74
9.69
11.52
17.47
12.75
9.60
9.36
11.38
17.34
12.41
9.00
NOTE. Rates are for 3-month interbank loans except for the following:
Canada, finance company paper; Belgium, time deposits of 20 million
3.28
1981
1980
francs and over; and Japan, loans and discounts that can be called after
being held over a minimum of two month-ends.
FOREIGN EXCHANGE RATES
Cents per unit of foreign currency
1980
Country/currency
1978
1979
1981
1980
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Australia/dollar
Austria/schilling
Belgium/franc
Canada/dollar
Denmark/krone
114.41
6.8958
3.1809
87.729
18.156
111.77
7.4799
3.4098
85.386
19.010
114.00
7.7349
3.4247
85.530
17.766
115.85
8.0578
3.5766
86.783
18.487
115.77
7.8840
3.4883
86.263
18.070
117.04
7.8916
3.4844
85.861
18.068
117.43
7.6714
3.3875
85.538
17.639
116.75
7.3433
3.2457
84.286
16.962
116.86
7.1549
3.1543
83.560
16.573
118.19
7.0297
3.0962
83.974
16.181
6
7
8
9
10
Finland/markka
France/franc
Germany/deutsche mark
India/rupee
Ireland/pound
24.337
22.218
49.867
12.207
191.84
27.732
23.504
54.561
12.265
204.65
26.892
23.694
55.089
12.686
205.77
27.699
24.657
57.245
12.875
214.74
27.353
24.106
55.867
12.849
210.62
27.428
24.056
55.883
12.903
210.34
27.122
23.489
54.280
12.932
203.88
26.452
22.515
52.113
12.868
194.59
25.903
21.925
50.769
12.608
189.01
25.752
21.539
49.771
12.567
185.54
11
12
13
14
15
Italy/lira
Japan/yen
Malaysia/ringgit
Mexico/peso
Netherlands/guilder
16
17
18
19
20
New Zealand/dollar
Norway/krone
Portugal/escudo
South Africa/rand
Spain/peseta
103.64
19.079
2.2782
115.01
1.3073
102.23
19.747
2.0437
118.72
1.4896
97.337
20.261
1.9980
128.54
1.3958
98.643
20.762
2.0466
130.79
1.4122
97.738
20.555
2.0163
131.55
1.3810
98.309
20.676
2.0096
132.73
1.3639
98.069
20.421
1.9756
133.13
1.3423
96.770
19.938
1.9178
133.20
1.3085
95.404
19.370
1.8773
132.83
1.2653
96.137
19.087
1.8591
133.69
1.2409
21
22
23
24
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
United Kingdom/pound
6.3834
22.139
56.283
191.84
6.4226
23.323
60.121
212.24
6.1947
23.647
59.697
232.58
6.3288
24.238
62.203
237.32
6.2980
23.953
60.527
237.04
6.3196
24.072
61.012
240.12
5.9707
23.845
60.185
241.64
5.8139
23.240
57.942
239.41
5.7379
22.722
56.022
234.59
5.9525
22.490
54.907
240.29
92.39
88.09
87.39
84.65
86.09
85.50
86.59
89.31
90.99
91.38
1
2
3
4
5
.11782
.47981
43.210
4.3896
46.284
.12035
.45834
45.720
4.3826
49.843
.11694
.44311
45.967
4.3535
50.369
.12026
.45232
46.658
4.3511
52.337
.11801
.44666
46.484
4.3389
51.305
.11742
.46644
47.127
4.3443
51.398
.11441
.47777
46.902
4.3324
50.052
.11000
.46928
46.187
4.3166
48.102
.10704
.47747
45.406
4.3071
46.730
.10478
.49419
44.994
4.2792
45.810
MEMO:
25 United States/dollar1
1. Index of weighted average exchange value of U.S. dollar against currencies of other G-10 countries plus Switzerland. March 1973 = 100.
Weights are 1972-76 global trade of each of the 10 countries. Series
revised as of August 1978. For description and back data, see "Index of
the Weighted-Average Exchange Value of the U.S. Dollar: Revision" on page
700 of t h e A u g u s t 1978 BULLETIN.
NOTE. Averages of certified noon buying rates in New York for cable transfers.
A67
Guide to Tabular Presentation,
Statistical Releases, and Special Tables
GUIDE TO TABULAR
PRESENTATION
Symbols and Abbreviations
c
e
P
r
*
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading
when more than half of figures in that column
are changed.)
Amounts insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is
millions)
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
General Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed issues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct obli-
STATISTICAL
gations of the Treasury. "State and local government" also
includes municipalities, special districts, and other political
subdivisions.
In some of the tables details do not add to totals because of
rounding.
RELEASES
List Published Semiannually, with Latest Bulletin Reference
Anticipated schedule of release dates for periodic releases
SPECIAL
Issue
December 1980
Page
A80
October 1980
December 1980
February 1981
A68
A68
TABLES
Published Irregularly, with Latest Bulletin Reference
Commercial bank assets and liabilities, call dates, December 31, 1978, to March 31, 1980
Commercial bank assets and liabilities, June 30, 1980
Commercial bank assets and liabilities, September 30, 1980
All
A68
4.20
Special Tables • February 1981
DOMESTIC AND FOREIGN OFFICES, Commercial Banks with Assets of $100 Million or over'p
Consolidated Report of Condition; Sept. 30, 1980
Millions of dollars
Banks with foreign offices 2
Item
Insured
Total
1 Total assets
2 Cash and due from depository institutions
3
Currency and coin (U.S. and foreign)
4
Balances with Federal Reserve Banks
Balances with other central banks
5
6
Demand balances with commercial banks in United States
7
All other balances with depository institutions in United States and with banks in foreign
countries
8
Time and savings balances with commercial banks in United States
9
Balances with other depository institutions in United States
10
Balances with banks in foreign countries
11
Foreign branches of other U.S. banks
12
Other banks in foreign countries
13 Cash items in process of collection
14 Total securities, loans, and lease financing receivables
15 Total securities, book value
16 U.S. Treasury
17 Obligations of other U.S. government agencies and corporations
18 Obligations of states and political subdivisions in United States
19 All other securities
20
Other bonds, notes, and debentures
21
Federal Reserve and corporate stock
22
Trading account securities
23 Federal funds sold and securities purchased under agreements to resell
24 Total loans, gross
25 LESS: Unearned income on loans
26
Allowance for possible loan loss
27 EQUALS: Loans, net
Total loans, gross, by category
28 Real estate loans ..
29
Construction and land development
30
Secured by farmland
31
Secured by residential properties
32
l-to4-family
33
FHA-insured or VA-guaranteed
34
Conventional
35
Multifamily
36
FHA-insured
37
Conventional
38 Secured by nonfarm nonresidential properties
39 Loans to financial institutions
40
REITs and mortgage companies in United States
41
Commercial banks in United States
42
U.S. branches and agencies of foreign banks
43
Other commercial banks
44
Banks in foreign countries
45
Foreign branches of other U.S. banks
46
Other
47
Finance companies in United States
48
Other financial institutions
49 Loans for purchasing or carrying securities
50
Brokers and dealers in securities
51
Other
52 Loans to finance agricultural production and other loans to farmers
53 Commercial and industrial loans
54
U.S. addressees (domicile)
55
Non-U.S. addressees (domicile)
56 Loans to individuals for household, family, and other personal expenditures
57
Installment loans
58
Passenger automobiles
59
Credit cards and related plans
60
Retail (charge account) credit card
61
Check and revolving credit
62
Mobile homes
63
Other installment loans
64
Other retail consumer goods
65
Residential property repair and modernization
66
Other installment loans for household, family, and other personal expenditures
67
Single-payment loans
68 All other loans
69
Loans to foreign governments and official institutions
70
Other
71
72
73
74
75
76
77
78
79
80
Lease financing receivables
Bank premises, furniture and fixtures, and other assets representing bank premises
Real estate owned other than bank premises
All other assets
Investment in unconsolidated subsidiaries and associated companies
Customers' liability on acceptances outstanding
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Net due from foreign branches, foreign subsidiaries. Edge and agreement subsidiaries ..
Other
Foreign
offices 3
Domestic
offices
Banks
without
foreign
offices
1,403,268
282,330
12,424
25,567
2,637
38,395
1,048,133
242,842
7,235
18,577
2,637
27.393
343,261
126,383
277
330
2,573
4,405
735,105
116,459
6,958
18,247
64
22,988
355,134
39,488
5,189
6,991
N.A.
11,001
126,471
5,506
395
120,570
N.A.
N.A.
76,835
1,027,612
214,048
63,077
31,931
97,377
21,662
11,594
1,642
8,427
121,724
2,759
250
118,715
26,749
91,966
65,276
116,789
1,503
113
115,173
25,668
89,506
2,008
192,942
10,305
387
25
651
9,243
8,005
149
1,089
260
182,006
1,642
226
180,138
4.935
1,256
137
3,542
1,081
2,460
63,268
532,733
112,841
33,482
15,890
53,836
9,633
l,6i5
1,051
6,967
24,339
398,2^7
6,345
5,544
386,409
4,747
2,748
145
1,855
N.A.
N.A.
11,559
301,937
90,902
29,209
16,017
42,890
2,786
1,973
422
371
6,224
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
33,858
126
746
360
386
25,718
229
25,490
349
6,919
1,399
1,040
359
677
106,627
7.098
99,529
105,516
22,031
772
61,698
58,396
4,094
54,302
3,302
220
3,082
21,016
36,742
5,351
4,667
1,842
2,825
7,897
173
7,725
8,730
10,096
8,055
5,927
2,128
5,203
164,333
155,977
8,356
73,194
8,002
1,161
41,220
39,246
2,094
37,152
1,974
111
1,863
22,812
2,915
738
575
N.A.
N.A.
244
N.A.
N.A.
440
918
1,724
292
1,432
4,037
55,739
N.A.
N.A.
6,585
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
26,635
23.530
3,105
2,239
1.027
135
22,775
956
8,241
N.A.
N.A.
3,863
9,714
65.789
55,695
18,021
18,521
14,979
3,542
3,456
15,697
4,361
3.751
7,585
10.094
12,659
2,131
10,528
56,017
47,455
20,617
8,718
7,388
1,329
3,412
14,709
3,461
3,606
7,642
8,562
3,311
N.A.
N.A.
9,145
10,069
1,042
74,801
502
31,057
N.A.
N.A.
26,370
16,872
1,589
7,062
483
6,165
38
314
N.A.
N.A.
N.A.
5,813
45,568
777,241
14,328
7,889
755,024
725,675
123,146
33,868
15,914
54,487
18,876
9,621
1,200
8,056
24,599
580,303
7,987
5,770
566,546
128,392
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
42,605
N.A.
N.A.
111,741
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
70,600
5,478
5,413
2,203
3,211
33,616
401
33,214
9,080
17,014
9,454
6,967
2,488
5,880
270,960
163,074
107,885
72,374
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
39,294
25,661
13,633
12,973
18,159
1,660
73,508
1,496
39,612
N.A.
N.A.
N.A.
32,400
11,384
11,096
1,177
67,343
1,458
39,298
13,713
25,585
N.A.
25,587
184,935
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
73,515
6,215
5.989
N.A.
N.A.
33.860
N.A.
N.A.
9,519
17,932
11,178
7,259
3,919
9,917
326,699
N.A.
N.A.
20,969
196,938
6,341
2,119
188,477
Commercial Banks
4.20
A69
Continued
Banks with foreign offices2
Insured
Total
Foreign
offices 3
Domestic
offices
Banks
without
foreign
offices
81 Total liabilities and equity capital 4
1,403,268
1,048,133
N.A.
N.A.
355,134
82 Total liabilities excluding subordinated debt
1,324,114
996,054
342,969
683,318
328,060
1,071,469
749,859
2,364
49,811
254,710
41,600
69,886
N.A.
N.A.
143,225
N.A.
N.A.
14,724
777,481
493,254
1,652
24,906
246,277
41,418
61,975
11,365
50,610
142,884
26,792
116,093
11,392
285,741
100,662
226
547
182,048
33,491
15,448
3,613
11,835
133,109
26,746
106,363
2,259
491,740
392,592
1,427
24,359
64,229
7,927
46,527
7,752
38,775
9,775
46
9,729
9,133
293,988
256,605
712
24,905
8,433
182
7,911
N.A.
N.A.
341
N.A.
N.A.
3,332
129,551
106,084
394
105,690
23,467
46,353
16,059
30,294
1,805
74,936
39,728
N.A.
35,208
5,778
41,730
12,528
29,202
1,224
69,534
39,414
N.A.
30,120
4,094
14,278
N.A.
14,278
13
42,542
6,580
26,370
9,592
292
27,452
12,528
14,924
1,211
57,225
32,834
3,863
20,528
3,802
4,623
3,531
1,093
581
5,402
314
N.A.
5,087
1,684
73,375
95
14,589
25,861
32,830
31,966
864
47,985
10
9,532
16,325
22,118
21,703
415
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
25,390
85
5,057
9,536
10,712
10,263
449
312,252
139,609
333,867
183,241
167,788
15,453
15,217
213,994
73,078
204,668
133,488
121,903
11,584
9,072
0
0
0
0
0
0
0
213,994
73,078
204,668
133,488
121,903
11,584
9,072
98,258
66,531
129,199
49,753
45,885
3,869
6,145
84,552
188,386
42,544
N.A.
N.A.
41,087
108,950
39,759
25,708
14,052
0
0
9,104
N.A.
N.A.
41,087
108,950
43,466
79,437
30,655
N.A.
N.A.
2,785
N.A.
N.A.
2,138
N.A.
2,008
N.A.
265
N.A.
1,743
212
130
425
1,377,849
269,262
45,602
754,090
1,048,951
165,775
133,995
29,178
1,427
1,027,036
233,422
23,463
564,292
758,934
N.A.
110,066
28,105
177
316,014
123,663
485
179,364
284,592
N.A.
359
13,297
177
711,022
109,758
22,978
384,927
474,342
119,997
109,707
14,808
177
350,813
35,840
22,139
189,798
290,017
45,778
23,929
1,073
1,250
83 Total deposits
84
Individuals, partnerships, and corporations
85 U.S. government
86 States and political subdivisions in United States
87
Allother
88
Foreign governments and official institutions
89
Commercial banks in United States
90
U.S. branches and agencies of foreign banks
91
Other commercial banks in United States
92
Banks in foreign countries
93
Foreign branches of other U.S. banks
94
Other banks in foreign countries
95
Certified and officers' checks, travelers checks, and letters of credit sold for cash
% Federal funds purchased and securities sold under agreements to repurchase in domestic offices
and Edge and agreement subsidiaries
97 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed
money
98
Interest-bearing demand notes (note balances) issued to U.S. Treasury
99 Other liabilities for borrowed money
100 Mortgage indebtedness and liability for capitalized leases
101 All other liabilities
102 Acceptances executed and outstanding
103 Net due to foreign branches, foreign subsidiaries. Edge and agreement subsidiaries
104 Other
105 Subordinated notes and debentures
106 Total equity capital4
107 Preferred stock
108 Common stock
109 Surplus
110 Undivided profits and reserve for contingencies and other capital reserves
111
Undivided profits
112
Reserve for contingencies and other capital reserves
MEMO
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
Deposits in domestic offices
Total demand
Total savings
Total time
Time deposits of $100,000 or more
Certificates of deposit (CDs) in denominations of $100,000 or more
Other
Savings deposits authorized for automatic transfer and NOW accounts
Money market time certificates of $10,000 and less than $100,000 with original maturities of 26
weeks
Demand deposits adjusted 5
Standby letters of credit, total
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Standby letters of credit conveyed to others through participations (included in total standby
letters of credit)
Holdings of commercial paper included in total gross loans
Average for 30 calendar days (or calendar month) ending with report date
Total assets
Cash and due from depository institutions
Federal funds sold and securities purchased under agreements to resell
Total loans
Total deposits
Time CDs in denominations of $100,000 or more in domestic offices
Federal funds purchased and securities sold under agreements to repurchase
Other liabilities for borrowed money
Number of banks
For notes see page A73.
A68
4.21
Special Tables • February 1981
DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or over'-*>P
Consolidated Report of Condition; Sept. 30, 1980
Millions of dollars
Member banks
Nonmember
insured
Insured
Total
National
State
1,090,240
934,284
703,094
231,190
155,956
2 Cash and due from depository institutions
3
Currency and coin (U.S. and foreign)
4
Balances with Federal Reserve Banks
5
Balances with other central banks
6
Demand balances with commercial banks in United States
7
All other balances with depository institutions in United States and with banks in foreign
countries
Time and savings balances with commercial banks in United States
8
9
Balances with other depository institutions in United States
10
Balances with banks in foreign countries
11 Cash items in process of collection
155,947
12,147
25,238
64
33,989
141,960
10,419
25,061
64
27,089
94,880
8,150
18,329
64
15,041
47.080
2,268
6,733
13,987
1,728
176
*
*
12,048
6,900
9,682
4,003
282
5,397
74,827
6,398
2,346
104
3,947
72,928
5,041
2.125
86
2,829
48,255
1,357
221
18
1,118
24,674
3,284
1,657
178
1,449
1,899
12 Total securities, loans, and lease financing receivables
834,670
700,610
540,683
159,927
134,060
13 Total securities, book value
14 U.S. Treasury
15 Obligations of other U.S. government agencies and corporations
16 Obligations of states and political subdivisions in United States
17 All other securities
18
Other bonds, notes, and debentures
19
Federal Reserve and corporate stock
20
Trading account securities
203,742
62,690
31,907
96,726
12,419
3,588
1,493
7,338
163,241
48,955
24,524
78,997
10,765
2,262
1,317
7,186
123,356
36,593
19,456
59,784
7,523
1,705
973
4.845
39,885
12,362
5,067
19,213
3,242
557
344
2,342
40,501
13,735
7,383
17,729
1,654
1,326
176
152
1 Total assets
45,308
38,919
30,861
8,058
6,389
22 Total loans, gross
23 LESS: Unearned income on loans
24
Allowance for possible loan loss
25 EQUALS: Loans, net
595,308
12,686
7,663
574,886
505,229
9,968
6,723
488,538
392.237
8,054
5.054
379,128
112,993
1,914
1,669
109,409
90,005
2,718
940
86,348
Total loans, gross, by category
26 Real estate loans . . . '
27 Construction and land development
28
Secured by farmland
29
Secured by residential properties
30
1-to 4-family
31
FHA-insured or VA-guaranteed
32
Conventional
33
Multifamily
34
FHA-insured
35
Conventional
36
Secured by nonfarm nonresidential properties
178,711
30,032
1,932
102,917
97,641
6,188
91,453
5.276
331
4.945
43,829
143,602
25,504
1,461
83,437
79,260
5,525
73,735
4.177
260
3.917
33,200
117,708
19,862
1,330
69.614
66.502
4,662
61,840
3,112
138
2.974
26.901
25,895
5,642
131
13,823
12,758
863
11,895
1,065
122
943
6,299
35,108
4,528
472
19,480
18,381
663
17,718
1,099
71
1,028
10,629
39,657
6,089
5,243
8,142
9.170
11.013
37,734
5,753
4,557
7,908
8,919
10,597
24.119
4,408
2,722
4,244
5.758
6.987
13,615
1,344
1,835
3,664
3,162
3,609
1,923
337
686
234
251
417
43 Loans for purchasing or carrying securities
44
Brokers and dealers in securities
45
Other
46 Loans to finance agricultural production and other loans to farmers
47 Commercial and industrial loans
9,779
6,219
3,560
9,240
220,072
9,230
5,994
3,235
8,350
194,026
5.606
3.034
2,571
7,686
146,755
3,624
2,960
664
664
47,271
549
225
324
890
26,046
48 Loans to individuals for household, family, and other personal expenditures
49
Installment loans
50
Passenger automobiles
51
Credit cards and related plans
52
Retail (charge account) credit card
53
Check and revolving credit
54
Mobile homes
55
Other installment loans
56
Other retail consumer goods
57
Residential property repair and modernization
58
Other installment loans for household, family, and other personal expenditures
59
Single-payment loans
60 All other loans
121.807
103.150
38,637
27,239
22,367
4.872
6.868
30,406
7,822
7,357
15,227
18,656
15,970
97,820
82,618
29,553
24,425
20,230
4,195
5,572
23,068
6,247
5,420
11.401
15,202
14,467
80,170
68,169
24,377
20,105
16,898
3,207
5,073
18,614
5,383
4,438
8,792
12,001
10,194
17,651
14.450
5,175
4,320
3,332
988
499
4.455
864
982
2,609
3,201
4.273
23,986
20,532
9,085
2,814
2,137
677
1,295
7,338
1,575
1,937
3,826
3,455
1.503
10.734
17.132
1,524
80,966
539
31,371
26,370
22,686
9,912
14,060
1,321
76,333
512
30,726
25,119
19,976
7.338
11.479
1,043
55,009
439
21.374
18,695
14.501
2,574
2,581
278
21,324
73
9,352
6,424
5,475
822
3,071
203
4,634
27
645
1,251
2,710
21 Federal funds sold and securities purchased under agreements to resell
37 Loans to financial institutions
38
REITs and mortgage companies in United States
39 Commercial banks in United States
40
Banks in foreign countries
41
Finance companies in United States
42
Other financial institutions
61
63
63
64
65
66
67
68
Lease financing receivables
Bank premises, furniture and fixtures, and other assets representing bank premises
Real estate owned other than bank premises
All other assets
Investment in unconsolidated subsidiaries and associated companies
Customers' liability on acceptances outstanding
Net due from foreign branches, foreign subsidiaries, Edge and agreement subsidiaries ..
Other
Commercial Banks
4.21
A71
Continued
Member banks
Nonmember
insured
Insured
National
Total
State
69 Total liabilities and equity capital 7
1,090,240
934,284
703,094
231,190
155,956
70 Total liabilities excluding subordinated debt
1,011,378
867,144
652,140
215,004
144,235
71 Total deposits
72
Individuals, partnerships, and corporations
73
U.S. government
74
States and political subdivisions in United States
75
Allother
76
Foreign governments and official institutions
77
Commercial banks in United States
78
Banks in foreign countries
79
Certified and officers' checks, travelers checks, and letters of credit sold for cash
785,728
649,197
2,139
49,265
72,662
8,108
54,438
10,116
12,466
653,803
533,850
1,812
37,361
70,087
7,860
52,528
9,698
10,694
495,553
417,884
1,366
30,486
39,539
4,853
30,238
4,448
6,278
158,250
115,966
446
6,875
30,548
3,007
22,291
5,250
4,416
131,925
115,347
327
11,904
2,576
248
1,910
417
1,772
80 Demand deposits
81
Mutual savings banks
82
Other individuals, partnerships, and corporations
83
U.S. government
84
States and political subdivisions in United States
85
Allother
86
Foreign governments and official institutions
87
Commercial banks in United States
88
Banks in foreign countries
89
Certified and officers' checks, travelers checks, and letters of credit sold for cash
312,252
1,130
227,699
1,558
10,555
58,844
2,301
47,481
9,063
12,466
271,064
963
192,153
1,347
8,588
57,320
2,201
46,278
8,841
10,694
190,398
533
144,922
1,064
6,840
30,760
917
25,966
3,877
6,278
80,666
430
47,230
283
1,748
26,559
1,284
20,312
4,963
4,416
41,188
167
35,546
211
1,967
1,525
100
1,203
222
1,772
90 Time deposits
91
Mutual savings banks
92
Other individuals, partnerships, and corporations
93
U.S. government
94
States and political subdivisions in United States
95
Allother
96
Foreign governments and official institutions
97
Commercial banks in United States
98
Banks in foreign countries
333,867
360
282,135
513
37,059
13,800
5,795
6,952
1,052
272,356
334
231,339
404
27,529
12,750
5,647
6,246
857
216,822
242
184,844
243
22,730
8,763
3,925
4,266
571
55,534
93
46,495
160
4,798
3,987
1,722
1,979
286
61,512
26
50,796
109
9,530
1,050
148
707
195
99 Savings deposits
100
Mutual savings banks
101
Other individuals, partnerships, and corporations
102
Individuals and nonprofit organizations
103
Corporations and other profit organizations
104
U.S. government
States and political subdivisions in United States
105
106
Allother
107
Foreign governments and official institutions
108
Commercial banks in United States
109
Banks in foreign countries
88,334
*
*
*
137,872
130,329
7,543
68
1,651
18
13
5
109,060
103,436
5,624
61
1,245
17
12
5
87,343
82,856
4,487
59
916
16
11
5
22,050
0
21,717
20,580
1,138
2
329
2
1
29,225
0
28,812
26,893
1,919
7
406
1
129,157
122,062
91,569
30,493
7,095
32,075
16,059
16,016
1,792
30,308
14,885
15,423
1,488
20,205
11,110
9,095
1,211
10,103
3,775
6,328
277
1,767
1,174
593
304
62,627
33,148
3,863
25,616
59,482
32,503
3,714
23,265
43,601
23,091
2,977
17,533
15,882
9,412
737
5,733
3,145
645
149
2,350
110 Federal funds purchased and securities sold under agreements to repurchase
111 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed
money
112
Interest-bearing demand notes (note balances) issued to U.S. Treasury
113
Other liabilities for borrowed money
114 Mortgage indebtedness and liability for capitalized leases
115 All other liabilities
116
Acceptances executed and outstanding
117
Net aue to foreign branches, foreign subsidiaries, Edge and agreement subsidiaries
118
Other
119 Subordinated notes and debentures
120 Total equity capital 7
139,609
110,384
*
1
5,486
4,408
3,225
1,182
1,078
73,375
62,732
47,729
15,003
10,643
183,241
167,788
15,453
15,217
155,263
141,288
13,975
12,341
119,561
108,752
10,809
9,444
35,702
32,536
3,166
2,896
27,978
26,500
1,477
2,876
84,552
188,386
66,199
150,511
55,475
115,113
10,724
35,398
18,353
37,876
33,440
1,872
637
31,883
1,761
389
21,764
1,498
280
10,119
262
109
1,557
112
248
1,061,835
145,599
45,117
574,726
764,359
165,775
133,636
15,881
907,918
132,868
38,501
487,719
634,265
139,534
126,434
15,367
684,258
88,723
30,630
379,216
483,555
107,737
95,110
8,695
223,660
44,145
7,870
108,503
150,709
31,797
31,323
6,672
153,917
12,730
6,616
87,006
130,094
26,241
7,203
514
1,427
928
769
159
499
MEMO:
121 Time deposits of $ 100,000 or more
122
Certificates of deposit (CDs) in denominations of $100,000 or more
123
Other
124 Savings deposits authorized for automatic transfer and NOW accounts
125 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26
weeks
126 Demand deposits adjusted 5
127 Total standby letters of credit
128
Conveyed to others through participation (included in standby letters of credit
129 Holdings of commercial paper included in total gross loans
130
131
132
133
134
135
136
137
Average for 30 calendar days (or calendar month) ending with report date
Total assets
Cash and due from depository institutions
Federal funds sold and securities purchased under agreements to resell
Total loans
Total deposits
Time CDs in denominations of $100,000 or more in domestic offices
Federal funds purchased and securities sold under agreements to repurchase
Other liabilities for borrowed money
138 Number of banks
For notes see page A73.
A68
4.22
Special Tables • February 1981
DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities'?
Consolidated Report of Condition; Sept. 30, 1980
Millions of dollars
Member banks
Item
Total
1 Total assets
7 Cash and due from depository institutions
3 Currency and coin (U.S. and foreign)
4
Balances with Federal Reserve Banks
5 Balances with other central banks
6
Demand balances with commercial banks in United States
7 All other balances with depository institutions in United States and banks in foreign countries
8 Cash items in process of collection
9
in
n
12
13
14
Total securities, loans, and lease financing receivables
Total securities, book value
U.S. Treasury
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions in United States
All other securities
Nonmember
insured
Insured
National
State
1,462,155
1,089,346
833,811
255,535
372,809
187.014
17,294
29,923
64
48,608
13,592
77,533
156,715
12,800
29,647
64
31,710
7,722
74,771
107,417
10,163
22,237
64
19,024
6,178
49,750
49,298
2,636
7,410
30,299
4,494
276
*
*
12,686
1,544
25,021
16,898
5,870
2,762
1,161,898
835,335
654,112
181,223
326,564
309,737
97,524
55,490
142,387
14,335
207,139
63,089
33,849
98,612
11,589
160,503
48,327
27,378
76,586
8,212
46,636
14,762
6,471
22,026
3,378
102,597
34,435
21,641
43,775
2,746
69,020
48,754
39,110
9,644
20,266
16 Total loans, gross
17 LESS: Unearned income on loans
18
Allowance for possible loan loss
19 EQUALS: Loans, net
801,445
19,787
9,593
772,065
589,821
12,917
7,555
569,349
463,311
10,556
5,764
446,992
126,509
2,362
1,791
122,357
211,624
6,870
2,038
202,716
Total loans, gross, by category
20 Real estate loans
21 Construction and land development
Secured by farmland
22
Secured by residential properties
23
24
l-to4-family
25
Multifamily
26
Secured by nonfarm nonresidential properties
255,770
35,166
8,488
149,413
142,904
6,509
62,703
175,409
27,261
3,671
103,554
98,913
4,641
40,923
144,065
21,375
3,090
86,185
82,689
3,497
33,415
31,344
5,887
581
17,368
16,224
1,144
7,508
80,361
7,904
4,817
45,859
43,991
1,868
21,780
27 Loans to financial institutions
Loans for purchasing or carrying securities
29 Loans to finance agricultural production and other loans to farmers
30 Commercial and industrial loans
40,455
10,345
31,596
265,526
38,025
9,412
17,018
212,694
24,376
5,762
14,772
162,707
13,649
3,650
2,247
49,987
2,430
934
14,578
52,832
178,631
147,619
63,114
28,451
10,508
45,546
31,012
19,122
121,469
101,230
39,755
25,001
7,220
29,255
20,238
15,794
100,298
84,052
33,101
20,615
6,489
23,847
16,246
11,332
21,171
17,178
6,653
4,386
731
5,408
3,992
4,462
57,162
46,388
23,360
3,449
3,288
16,291
10,774
3,328
11,077
24,546
2,052
86,644
10,093
17,138
1,505
78,653
7,507
14,087
1,192
57,003
2,586
3,052
313
21,650
984
7,408
547
7,991
15 Federal funds sold and securities purchased under agreements to resell
28
31
32
33
34
35
36
37
38
Loans to individuals for household, family, and other personal expenditures
Installment loans
Passenger automobiles
Credit cards and related plans
Mobile homes
All other installment loans for household, family, and other personal expenditures
Single-payment loans
All other loans
39 Lease financing receivables
40 Bank premises, furniture and fixtures, and other assets representing bank premises
41 Real estate owned other than bank premises
42 All other assets
Commercial Banks
4.22
A73
Continued
Member banks
Item
Total
43 Total liabilities and equity capital 7
National
1,089,346
833,811
255,535
44 Total liabilities excluding subordinated debt
1,350,749
1,008,836
771,634
237,202
45 Total deposits
46
Individuals, partnerships, and corporations
47
U.S. government
48
States and political subdivisions in United States
49
Allother
50
Certified and officers' checks, travelers checks, and letters of credit sold for cash
1,114,581
944,626
2,952
77,453
73,774
15,776
790,453
657,229
2,134
48,437
70,594
12,060
610,771
521,782
1,646
39,921
39,976
7,446
179,682
135,447
488
8,516
30,618
4,613
51 Demand deposits
52
Individuals, partnerships, and corporations
53
U.S. government
54
States and political subdivisions in United States
55
Allother
56
Certified and officers' checks, travelers checks, and letters of credit sold for cash
409,792
315,616
2,148
16,634
59,617
15,776
311,909
229,325
1,583
11,223
57,719
12,060
225,334
176,455
1,265
9,071
31,097
7,446
86,575
52,870
318
2,152
26,622
4,613
57 Time deposits
58
Other individuals, partnerships, and corporations
59
U.S. government
60
States and political subdivisions in United States
61
Allother
493,307
421,226
713
57,257
14,112
337,157
288,674
479
35,161
12,842
271,334
232,918
313
29,254
8,848
65,823
55,756
166
5,907
3,995
62 Savings deposits
63
Corporations and other profit organizations
64
Other individuals, partnerships, and corporations
65
U.S. government
66
States and political subdivisions in United States
67
Allother
211,482
10,761
197,023
90
3,562
45
141,388
6,921
132,309
71
2,053
33
114,104
5,584
106.825
67
1,596
30
27,284
1,337
25,484
4
457
2
68 Federal funds purchased and securities sold under agreements to repurchase
69 Interest-bearing demand notes (note balances) issued to U.S. Treasury and other liabilities for
borrowed money
70 Mortgage indebtedness and liability for capitalized leases
71 All other liabilities
133,437
124,344
93,503
30,841
33,426
31,032
1,617
61,389
20,827
1,313
45,220
10,205
305
16,169
72 Subordinated notes and debentures
73 Total equity capital 7
2,128
67,176
6,271
4,733
3,516
1,217
105,135
75,778
58,661
17,117
219,729
200,677
19.052
19,026
169,337
153,972
15,365
14,120
131,678
119,664
12,014
10,968
37,659
34,309
3,351
3,153
150,598
281,860
93,382
188,878
78.281
148.016
15,101
40,862
MEMO
74 Time deposits of $100,000 or more
75
Certificates of deposit (CDs) in denominations of $100,000 or more
76
Other
77 Savings deposits authorized for automatic transfer and NOW accounts
78 Money niarket time certificates of $10,000 and less than $100,000 with original maturities of 26
weeks
79 Demand deposits adjusted 5
80 Total standby letters of credit
Average for 30 calendar days (or calendar month) ending with report date
81 Total deposits
82 Number of banks
1. Effective December 31, 1978, the report of condition was substantially revised
for commercial banks. Commercial banks with assets less than $100 million and
with domestic offices only were given the option to complete either the abbreviated
or the standard set of reports. Banks with foreign offices began reporting in greater
detail on a consolidated domestic and foreign basis. These tables reflect the varying
levels of reporting detail.
2. All transactions between domestic and foreign offices of a bank are reported
in "Net due from" and "Net due to" (lines 79 and 103). All other lines represent
transactions with parties other than the domestic and foreign offices of each bank.
Since these intra-office transactions are erased by consolidation, total assets and
liabilities are the sum of all except intra-office balances.
3. Foreign offices include branches in foreign countries and in U.S. territories
and possessions, subsidiaries in foreign countries, and all offices of Edge Act and
agreement corporations wherever located.
34,462
22,091
1,091,098
770,059
598,063
171,996
14,416
5,411
4,425
986
4. Equity capital is not allocated between the domestic and foreign offices of
banks with foreign offices.
5. Demand deposits adjusted equal demand deposits other than domestic commercial interbank and U.S. government less cash items in process of collection.
6. Domestic offices exclude branches in foreign countries and in U.S. territories
and possessions, subsidiaries in foreign countries, and all offices of Edge Act and
agreement corporations wherever located.
7. This item contains the capital accounts of U.S. banks that have no Edge or
foreign operations and reflects the difference between domestic office assets and
liabilities of U.S. banks with Edge or foreign operations excluding the capital
accounts of their Edge or foreign subsidiaries.
N.A. This item is unavailable for all or some of the banks because of the lesser
detail available from banks without foreign offices, the inapplicability of certain
items to banks that have only domestic offices, and the absence of detail on a fully
consolidated basis for banks with foreign offices.
A74
Federal Reserve Board of Governors
PAUL A . VOLCKER,
Chairman
Vice Chairman
HENRY C. WALLICH
FREDERICK H . S C H U L T Z ,
J. CHARLES PARTEE
OFFICE OF BOARD
OFFICE OF STAFF DIRECTOR
MONETARY AND FINANCIAL
MEMBERS
Assistant to the Board
Assistant to the Board
A N T H O N Y F . C O L E , Special Assistant to the Board
W I L L I A M R . M A L O N I , Special Assistant to the Board
F R A N K O ' B R I E N , J R . , Special Assistant to the Board
JOSEPH S . S I M S , Special Assistant to the Board
J A M E S L . S T U L L , Manager, Operations Review Program
FOR
POLICY
JOSEPH R . C O Y N E ,
D O N A L D J. W I N N ,
LEGAL
DIVISION
General Counsel
Deputy General Counsel
J . V I R G I L M A T T I N G L Y , J R . , Associate General Counsel
G I L B E R T T . S C H W A R T Z , Associate General Counsel
M A R Y E L L E N A . B R O W N , Assistant to the General Counsel
C H A R L E S R . M C N E I L L , Assistant to the General Counsel
M I C H A E L E . B L E I E R , Assistant General Counsel
C O R N E L I U S K . H U R L E Y , J R . , Assistant General Counsel*
ROBERT E . M A N N I O N ,
SECRETARY
Assistant Secretary
Assistant Secretary
W A L K E R , Assistant
Secretary
BARBARA R . L O W R E Y ,
JAMES M C A F E E ,
*JEFFERSON A .
EDWARD C. ETTIN,
DIVISION
NEAL L . PETERSEN,
OFFICE OF THE
Staff Director
Deputy Staff Director
M U R R A Y A L T M A N N , Assistant to the Board
P E T E R M . K E I R , Assistant to the Board
S T A N L E Y J . S I G E L , Assistant to the Board
N O R M A N D R . V . B E R N A R D , Special Assistant to the Board
STEPHEN H . AXILROD,
DIVISION OF CONSUMER
AND COMMUNITY
AFFAIRS
AND
STATISTICS
Director
Deputy Director
M I C H A E L J . P R E L L , Associate
Director
R O B E R T A . E I S E N B E I S , Senior Deputy Associate
Director
J A R E D J . E N Z L E R , Senior Deputy Associate
Director
E L E A N O R J . S T O C K W E L L , Senior Deputy Associate
Director
D O N A L D L . K O H N , Deputy Associate
Director
J . C O R T L A N D G . P E R E T , Deputy Associate
Director
H E L M U T F . W E N D E L , Deputy Associate
Director
M A R T H A B E T H E A , Assistant
Director
JOE M . C L E A V E R , Assistant
Director
R O B E R T M . F I S H E R , Assistant
Director
D A V I D E . L I N D S E Y , Assistant
Director
L A W R E N C E S L I F M A N , Assistant
Director
F R E D E R I C K M . S T R U B L E , Assistant
Director
S T E P H E N P . T A Y L O R , Assistant
Director
L E V O N H . G A R A B E D I A N , Assistant Director
(Administration)
JAMES L . K I C H L I N E ,
JOSEPH S . Z E I S E L ,
DIVISION
Director
G R I F F I T H L . G A R W O O D , Deputy Director
J E R A U L D C . K L U C K M A N , Associate
Director
G L E N N E . L O N E Y , Assistant
Director
D E L O R E S S . S M I T H , Assistant
Director
OF RESEARCH
OF INTERNATIONAL
FINANCE
JANET O . HART,
DIVISION OF BANKING
SUPERVISION AND
REGULATION
Director
Associate Director
W I L L I A M T A Y L O R , Associate
Director
W I L L I A M W . W I L E S , Associate
Director
JACK M . E G E R T S O N , Assistant
Director
R O B E R T A . J A C O B S E N , Assistant
Director
D O N E . K L I N E , Assistant
Director
R O B E R T S . P L O T K I N , Assistant
Director
T H O M A S A . S I D M A N , Assistant
Director
S A M U E L H . T A L L E Y , Assistant
Director
L A U R A M . H O M E R , Securities Credit Officer
JOHN E . R Y A N ,
FREDERICK R . D A H L ,
Director
Associate Director
G E O R G E B . H E N R Y , Associate
Director
C H A R L E S J . S I E G M A N , Associate
Director
S A M U E L P I Z E R , Staff Adviser
D A L E W . H E N D E R S O N , Assistant
Director
L A R R Y J . P R O M I S E L , Assistant
Director
R A L P H W . S M I T H , J R . , Assistant
Director
EDWIN M. TRUMAN,
ROBERT F . G E M M I L L ,
A75
and Official Staff
NANCY H . TEETERS
LYLE E . GRAMLEY
EMMETT J. RICE
OFFICE OF
STAFF DIRECTOR
FOR
MANAGEMENT
Staff Director
Assistant Staff Director
D A N I E L S , S R . , Director of Equal Employment Op-
OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK ACTIVITIES
Staff Director
Assistant Director for
JOHN M . DENKLER,
THEODORE E. ALLISON,
EDWARD T. MULRENIN,
HARRY
JOSEPH W .
A.
GUINTER,
Planning
portunity
DIVISION OF DATA
PROCESSING
Director
Associate Director
U Y L E S S D . B L A C K , Assistant
Director
G L E N N L . C U M M I N S , Assistant
Director
R O B E R T J . Z E M E L , Assistant
Director
DIVISION OF FEDERAL
BANK
OPERATIONS
RESERVE
CHARLES L . H A M P T O N ,
CLYDE H . FARNSWORTH, JR.,
BRUCE M . BEARDSLEY,
WALTER ALTHAUSEN,
DIVISION OF
PERSONNEL
Director
Assistant Director
W O O D , Assistant
Director
DAVID L. SHANNON,
JOHN R . W E I S ,
CHARLES W .
OFFICE OF THE
JOHN KAKALEC,
CONTROLLER
Controller
Assistant
GEORGE E . LIVINGSTON,
DIVISION OF SUPPORT
Controller
SERVICES
Director
Assistant Director
K R E I M A N N , Associate
Director
DONALD E. ANDERSON,
ROBERT E . FRAZIER,
WALTER W .
*On loan from the Federal Reserve Bank of Richmond.
Director
Assistant Director
C H A R L E S W . B E N N E T T , Assistant
Director
L O R I N S . M E E D E R , Assistant
Director
P . D . R I N G , Assistant
Director
D A V I D L . R O B I N S O N , Assistant
Director
R A Y M O N D L . T E E D , Assistant
Director
Contingency
76
Federal Reserve Bulletin • February 1981
FOMC and Advisory Councils
FEDERAL OPEN MARKET
P A U L A . VOLCKER,
COMMITTEE
Chairman
A N T H O N Y M . SOLOMON,
LYLE E . GRAMLEY
J . C H A R L E S PARTEE
ROGERGUFFEY
EMMETTJ.RICE
FRANK E . MORRIS
LAWRENCE K .
Vice Chairman
N A N C Y H . TEETERS
H E N R Y C . WALLICH
Roos
WILLIS J. W I N N
FREDERICK H . S C H U L T Z
Secretary
Assistant Secretary
N E A L L . P E T E R S E N , General Counsel
JAMES H . O L T M A N , Deputy General Counsel
ROBERT E . M A N N I O N , Assistant General Counsel
S T E P H E N H . A X I L R O D , Economist
A L A N R . H O L M E S , Adviser for Market Operations
A N A T O L B A L B A C H , Associate
Economist
JOHN D A V I S , Associate
Economist
Associate Economist
Associate Economist
R O B E R T E I S E N M E N G E R , Associate
Economist
E D W A R D C . E T T I N , Associate
Economist
G E O R G E B . H E N R Y , Associate
Economist
PETER M . K E I R , Associate
Economist
JAMES L . K I C H L I N E , Associate
Economist
E D W I N M . T R U M A N , Associate
Economist
JOSEPH S . ZEISEL, Associate
Economist
MURRAY A L T M A N N ,
RICHARD G . DAVIS,
NORMAND R. V . BERNARD,
THOMAS DAVIS,
Manager for Domestic Operations, System Open Market Account
Manager for Foreign Operations, System Open Market Account
PETER D . S T E R N L I G H T ,
SCOTT E . PARDEE,
FEDERAL ADVISORY
First District
Second District
J O H N W . W A L T H E R , Third District
M E R L E E . G I L L I A N D , Fourth District
J. O W E N C O L E , Fifth District
ROBERT S T R I C K L A N D , Sixth District
WILLIAM
S.
COUNCIL
Seventh District
Eighth District
C L A R E N C E G. F R A M E , Ninth District
G O R D O N E . W E L L S , Tenth District
T . C . F R O S T , JR., Eleventh District
C H A U N C E Y E . S C H M I D T , Twelfth District
HERBERT V . P R O C H N O W , Secretary
W I L L I A M J. KORSVIK, Associate
Secretary
EDGERLY,
ROBERT M . S U R D A M ,
DONALD C. PLATTEN,
CONSUMER
ADVISORY
RONALD TERRY,
COUNCIL
Washington D.C., Chairman
Charlottesville, Virginia, Vice Chairman
R A L P H J. R O H N E R ,
CHARLOTTE H . S C O T T ,
Little Rock, Arkansas
Alexandria, Virginia
E L L E N B R O A D M A N , Washington, D.C.
JAMES L. B R O W N , Milwaukee, Wisconsin
M A R K E . B U D N I T Z , Atlanta, Georgia
JOSEPH N. C U G I N I , Westerly, Rhode Island
R I C H A R D S. D ' A G O S T I N O , Philadelphia, Pennsylvania
S U S A N PIERSON D E W I T T , Springfield, Illinois
J O A N N E S. F A U L K N E R , New Haven, Connecticut
L U T H E R G A T L I N G , New York, New York
V E R N A R D W . H E N L E Y , Richmond, Virginia
J U A N JESUS H I N O J O S A , McAllen, Texas
SHIRLEY T. H O S O I , Los Angeles, California
GEORGE S. I R V I N , Denver, Colorado
ARTHUR F . BOUTON,
JULIA
H.
BOYD,
Ann Arbor, Michigan
Cincinnati, Ohio
H A R V E Y M . K U H N L E Y , Minneapolis, Minnesota
T H E R E V . ROBERT J. M C E W E N , S . J . , Chestnut Hill,
Massachusetts
S T A N L. M U L A R Z , Chicago, Illinois
W I L L I A M J. O ' C O N N O R , Buffalo, New York
M A R G A R E T R E I L L Y - P E T R O N E , Upper Montclair, New Jersey
R E N E R E I X A C H , Rochester, New York
F L O R E N C E M. R I C E , New York, New York
H E N R Y B. S C H E C H T E R , Washington, D.C.
P E T E R D. S C H E L L I E , Washington, D.C.
N A N C Y Z . S P I L L M A N , Los Angeles, California
R I C H A R D A . V A N W I N K L E , Salt Lake City, Utah
M A R Y W . W A L K E R , Monroe, Georgia
F . T H O M A S JUSTER,
RICHARD F . KERR,
A77
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, orfacility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
Robert P. Henderson
Thomas I. Atkins
Frank E. Morris
James A. Mcintosh
NEW YORK*
10045
Robert H. Knight, Esq.
Boris Yavitz
Frederick D. Berkeley, III
Anthony M. Solomon
Thomas M. Timlen
Buffalo
..14240
John T. Keane
PHILADELPHIA
19105
John W. Eckman
Jean A. Crockett
Edward G. Boehne
Richard L. Smoot
CLEVELAND*
44101
J. L. Jackson
William H. Knoell
Martin B. Friedman
Milton G. Hulme, Jr.
Willis J. Winn
Walter H. MacDonald
Maceo A. Sloan
Steven Muller
Joseph H. McLain
Naomi G. Albanese
Robert P. Black
Jimmie R. Monhollon
Cincinnati
Pittsburgh
45201
15230
RICHMOND*
23261
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30301
35202
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
SAN FRANCISCO ...
Los Angeles
Portland
Salt Lake City
Seattle
59601
64198
80217
73125
68102
75222
79999
77001
78295
94120
90051
97208
84125
98124
Vice President
in charge of branch
Robert E. Showalter
Robert D. Duggan
Robert D. McTeer, Jr.
Stuart P. Fishburne
Albert D. Tinkelenberg
William A. Fickling, Jr.
John H. Weitnauer, Jr.
Louis J. Willie
Jerome P. Keuper
Roy W. Vandegrift, Jr.
John C. Bolinger, Jr.
Horatio C. Thompson
William F. Ford
Robert P. Forrestal
John Sagan
Stanton R. Cook
Vacancy
Robert P. Mayo
Daniel M. Doyle
Armand C. Stalnaker
William B. Walton
E. Ray Kemp, Jr.
Sister Eileen M. Egan
Patricia W. Shaw
Lawrence K. Roos
Donald W. Moriarty, Jr.
Stephen F. Keating
William G. Phillips
Norris E. Hanford
E. Gerald Corrigan
Thomas E. Gainor
Paul H. Henson
Doris M. Drury
Caleb B. Hurtt
Christine H. Anthony
Robert G. Lueder
Roger Guffey
Henry R. Czerwinski
Gerald D. Hines
John V. James
Josefina A. Salas-Porras
Jerome L. Howard
Lawrence L. Crum
Robert H. Boykin
William H. Wallace
Cornell C. Maier
Caroline L. Ahmanson
Harvey A. Proctor
John C. Hampton
Wendell J. Ashton
George H. Weyerhaeuser
John J. Balles
John B. Williams
Hiram J. Honea
Charles D. East
F. J. Craven, Jr.
Jeffrey J. Wells
Pierre M. Viguerie
William C. Conrad
John F. Breen
Donald L. Henry
Robert E. Matthews
Betty J. Lindstrom
Wayne W. Martin
William G. Evans
Robert D. Hamilton
Joel L. Koonce, Jr.
J. Z. Rowe
Carl H. Moore
Richard C. Dunn
Angelo S. Carella
A. Grant Holman
Gerald R. Kelly
* 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.
A78
Federal Reserve Board Publications
Copies are available from PUBLICATIONS SERVICES,
ROOM MP-510, BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. 20551.
When a charge is indicated, remittance should accompany
request and be made payable to the order of the Board of
Governors of the Federal Reserve System. Remittance from
foreign residents should be drawn on a U.S. bank. Stamps
and coupons are not accepted.
THE
S U R V E Y OF C H A N G E S IN F A M I L Y F I N A N C E S .
FEDERAL
RESERVE
SYSTEM—PURPOSES
AND
FUNC-
Monthly. $ 2 0 . 0 0 per year or
$ 2 . 0 0 each in the United States, its possessions, Canada,
and Mexico; 10 or more of same issue to one address,
$ 1 8 . 0 0 per year or $ 1 . 7 5 each. Elsewhere, $ 2 4 . 0 0 per
year or $ 2 . 5 0 each.
B A N K I N G A N D M O N E T A R Y STATISTICS. 1 9 1 4 - 1 9 4 1 . (Reprint
of Part I only) 1976. 682 pp. $5.00.
B A N K I N G A N D M O N E T A R Y STATISTICS, 1941-1970. 1976.
1,168 pp. $15.00.
OF THE U . S . G O V E R N M E N T SECURITIES M A R K E T .
F E D E R A L RESERVE B U L L E T I N .
1971-75. 1976. 339 pp. $4.00 per copy for each paid subscription to Federal Reserve Bulletin; all others $5.00
each.
1972-76. 1977. 377 pp. $10.00 per copy.
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PUBLISHED
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STAFF
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1972. 4 8 7
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LENDING
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A N N U A L P E R C E N T A G E R A T E T A B L E S (Truth in Lending—
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A
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A79
CONSUMER EDUCATION
PAMPHLETS
Short pamphlets suitable for classroom use. Multiple copies available without charge.
T H E G N M A - G U A R A N T E E D PASSTHROUGH S E C U R I T Y :
Alice in Debitland
The Board of Governors of the Federal Reserve System
Consumer Handbook To Credit Protection Laws
The Equal Credit Opportunity Act and . . . Age
The Equal Credit Opportunity Act and . . . Credit Rights in
Housing
The Equal Credit Opportunity Act and . . . Doctors, Lawyers, Small Retailers, and Others Who May Provide Incidental Credit
The Equal Credit Opportunity Act and . . . Women
Fair Credit Billing
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Federal Reserve Glossary
How to File A Consumer Credit Complaint
If You Borrow To Buy Stock
If You Use A Credit Card
Truth in Leasing
U.S. Currency
What Truth in Lending Means to You
F O R E I G N O W N E R S H I P A N D T H E P E R F O R M A N C E OF
KET
DEVELOPMENT
AND
IMPLICATIONS
MAR-
FOR
G R O W T H A N D STABILITY OF H O M E MORTGAGE
THE
LEND-
ING, by David F. Seiders. Dec. 1979. 65 pp.
STAFF STUDIES
Studies and papers on economic and financial subjects that
are of general interest.
Summaries Only Printed in the Bulletin
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.
T I E - I N S B E T W E E N THE G R A N T I N G OF C R E D I T A N D SALES OF
I N S U R A N C E BY B A N K H O L D I N G C O M P A N I E S A N D O T H E R
L E N D E R S , by Robert A. Eisenbeis and Paul R. Schweitzer. Feb. 1979. 75 pp.
I N N O V A T I O N S IN B A N K L O A N CONTRACTING: R E C E N T E V I -
by Paul W. Boltz and Tim S. Campbell. May
1979. 40 pp.
DENCE
M E A S U R E M E N T OF C A P A C I T Y U T I L I Z A T I O N : PROBLEMS A N D
by Frank de Leeuw, Lawrence R. Forest, Jr.,
Richard D. Raddock, and Zoltan E. Kenessey. July
1979. 264 pp.
TASKS,
BANKS,
by James
V.
Houpt. July
1980. 27
U.S.
pp.
P E R F O R M A N C E A N D CHARACTERISTICS OF E D G E CORPORATIONS,
by James V. Houpt. Feb. 1981. 54 pp.
Printed in Full in the Bulletin
by Robert
J. Lawrence and Samuel H. Talley. January 1976.
A N A S S E S S M E N T OF B A N K H O L D I N G C O M P A N I E S ,
REPRINTS
Most of the articles reprinted do not exceed 12 pages.
Measures of Security Credit. 12/70.
Revision of Bank Credit Series. 12/71.
Assets and Liabilities of Foreign Branches of U.S. Banks.
2/72.
Bank Debits, Deposits, and Deposit Turnover—Revised Series. 7/72.
Rates on Consumer Instalment Loans. 9/73.
New Series for Large Manufacturing Corporations. 10/73.
The Structure of Margin Credit. 4/75.
Industrial Electric Power Use. 1/76.
Revised Series for Member Bank Deposits and Aggregate Reserves. 4/76.
Industrial Production—1976 Revision. 6/76.
Federal Reserve Operations in Payment Mechanisms: A
Summary. 6/76.
The Commercial Paper Market. 6/77.
The Federal Budget in the 1970's. 9/78.
Redefining the Monetary Aggregates. 1/79.
Implementation of the International Banking Act. 10/79.
U.S. International Transactions in 1979: Another Round of
Oil Price Increases. 4/80.
Perspectives on Personal Saving. 8/80.
The Impact of Rising Oil Prices on the Major Foreign Industrial Countries. 10/80.
A80
Index to Statistical Tables
References are to pages A-3 through A-73 al
ACCEPTANCES, bankers, 10, 23, 25
Agricultural loans, commercial banks, 18,19, 20, 24
Assets and liabilities (See also Foreigners)
Banks, by classes, 17, 18-21, 27,68-73
Domestic finance companies, 37
Federal Reserve Banks, 11
Nonfinancial corporations, current, 36
Automobiles
Consumer installment credit, 40, 41
Production, 46, 47
BANKERS balances, 17, 18-20, 68, 70, 72
(See also Foreigners)
Banks for Cooperatives, 33
Bonds (See also U.S. government securities)
New issues, 34
Yields, 3
Branch banks, 15,21,54
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 36
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 44
Capital accounts
Banks, by classes, 17, 69,71, 73
Federal Reserve Banks, 11
Central banks, 66
Certificates of deposit, 21, 25
Commercial and industrial loans
Commercial banks, 15, 24
Weekly reporting banks, 18-21,22
Commercial banks
Assets and liabilities, 3, 15, 17, 18-21, 68-73
Business loans, 24
Commercial and industrial loans, 22, 24
Consumer loans held, by type, 40, 41
Loans sold outright, 21
Nondeposit funds, 16
Number by classes, 17, 69, 71, 73
Real estate mortgages held, by holder and property, 39
Commercial paper, 3, 23, 25,37
Condition statements (See Assets and liabilities)
Construction, 44,48
Consumer installment credit, 40,41
Consumer prices, 44,49
Consumption expenditures, 50, 51
Corporations
Profits and their distribution, 35
Security issues, 34, 63
Cost of living (See Consumer prices)
Credit unions, 27, 40, 41
Currency and coin, 5, 17,68,70,72
Currency in circulation, 4,13
Customer credit, stock market, 26
DEBITS to deposit accounts, 12
Debt (See specific types of debt or securities)
Demand deposits
Adjusted, commercial banks, 12,14
Banks, by classes, 17, 18-21, 69, 71, 73
Ownership by individuals, partnerships, and
corporations, 23
the prefix "A" is omitted in this index
Demand deposits—Continued
Subject to reserve requirements, 14
Turnover, 12
Deposits (See also specific types)
Banks, by classes, 3, 17, 18-21, 27, 69, 71, 73
Federal Reserve Banks, 4,11
Turnover, 12
Discount rates at Reserve Banks (See Interest
rates)
Discounts and advances by Reserve Banks (See
Loans)
Dividends, corporate, 35
EMPLOYMENT, 44, 45
Eurodollars, 25
FARM mortgage loans, 39
Farmers Home Administration, 39
Federal agency obligations, 4, 10, 11, 12, 32
Federal and federally sponsored credit agencies, 33
Federal finance
Debt subject to statutory limitation and types and
ownership of gross debt, 30
Receipts and outlays, 28, 29
Treasury operating balance, 28
Federal Financing Bank, 28, 33
Federal funds, 3, 6, 18, 19, 20, 25, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 38, 39
Federal Housing Administration, 33, 38, 39
Federal Intermediate Credit Banks, 33
Federal Land Banks, 33, 39
Federal National Mortgage Association, 33, 38, 39
Federal Reserve Banks
Condition statement, 11
Discount rates (See Interest rates)
U.S. government securities held, 4, 11, 12, 30, 31
Federal Reserve credit, 4, 5,11, 12
Federal Reserve notes, 11
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 37
Business credit, 37
Loans, 18, 19, 20,40,41
Paper, 23,25
Financial institutions, loans to, 18, 19,20
Float, 4
Flow of funds, 42, 43
Foreign
Currency operations, 11
Deposits in U.S. banks, 4,11, 18, 19, 20
Exchange rates, 66
Trade,53
Foreigners
Claims on, 54,56, 59,60,61,65
Liabilities to, 21, 54-58, 62-64
GOLD
Certificates, 11
Stock,4,53
Government National Mortgage Association, 33, 38, 39
Gross national product, 50,51
A81
HOUSING, new and existing units, 48
INCOME, personal and national, 44, 50,51
Industrial production, 44, 46
Installment loans, 40,41
Insurance companies, 27, 30, 31, 39
Interbank loans and deposits, 17
Interest rates
Bonds, 3
Business loans of banks, 24
Federal Reserve Banks, 3,7
Foreign countries, 66
Money and capital markets, 3, 25
Mortgages, 3, 38
Prime rate, commercial banks, 24
Time and savings deposits, 9
International capital transactions of the
United States, 54-65
International organizations, 54-59,62-65
Inventories, 50
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 17,27
Commercial banks, 3,15,17, 18-20,68,70, 72
Federal Reserve Banks, 11,12
Life insurance companies, 27
Savings and loan associations, 27
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 17,18-21,27
Commercial banks, 3, 15,17, 18-21, 22, 24, 68,70, 72
Federal Reserve Banks, 3 , 4 , 5 , 7 , 11,12
Insurance companies, 27,39
Insured or guaranteed by United States, 38, 39
Savings and loan associations, 27
MANUFACTURING
Capacity utilization, 44
Production, 44,47
Margin requirements, 26
Member banks
Assets and liabilities, by classes, 17
Borrowings at Federal Reserve Banks, 5,11
Federal funds and repurchase agreements, 6
Number, 17
Reserve requirements, 8
Reserves and related items, 3, 4, 5, 14
Mining production, 47
Mobile home shipments, 48
Monetary aggregates, 3, 14
Money and capital market rates (See Interest rates)
Money stock measures and components, 3,13
Mortgages (See Real estate loans)
Mutual funds (See Investment companies)
Mutual savings banks, 3, 9, 18-20, 27, 30, 31, 39
NATIONAL defense outlays, 29
National income, 50
OPEN market transactions, 10
PERSONAL income, 51
Prices
Consumer and producer, 44,49
Stock market, 26
Prime rate, commercial banks, 24
Production, 44,46
Profits, corporate, 35
REAL estate loans
Banks, by classes, 18-20, 27, 29
Life insurance companies, 27
Mortgage terms, yields, and activity, 3, 38
Type of holder and property mortgaged, 39
Repurchase agreements and federal funds, 6, 18, 19, 20
Reserve requirements, member banks, 8
Reserves
Commercial banks, 17, 68,70, 72
Federal Reserve Banks, 11
Member banks, 3, 4, 5, 14,17
U.S. reserve assets, 53
Residential mortgage loans, 38
Retail credit and retail sales, 40, 41, 44
SAVING
Flow of funds, 42, 43
National income accounts, 51
Savings and loan assns., 3, 9, 27, 31, 39,42
Savings deposits (See Time deposits)
Savings institutions, selected assets, 27
Securities (See also U.S. government securities)
Federal and federally sponsored agencies, 33
Foreign transactions, 63
New issues, 34
Prices, 26
Special drawing rights, 4,11,52, 53
State and local governments
Deposits, 18, 19, 20
Holdings of U.S. government securities, 30, 31
New security issues, 34
Ownership of securities of, 18, 19, 20, 27
Yields of securities, 3
Stock market, 26
Stocks (See also Securities)
New issues, 34
Prices, 26
TAX receipts, federal, 29
Time deposits, 3,9, 12, 14, 17,18-21,69,71,73
Trade, foreign, 53
Treasury currency, Treasury cash, 4
Treasury deposits, 4, 11, 28
Treasury operating balance, 28
UNEMPLOYMENT, 45
U.S. balance of payments, 52
U.S. government balances
Commercial bank holdings, 18, 19, 20
Member bank holdings, 14
Treasury deposits at Reserve Banks, 4, 11, 28
U.S. government securities
Bank holdings, 17, 18-20, 27, 30, 31, 68, 70, 72
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 4, 11,12, 30, 31
Foreign and international holdings and transactions, 11,
30, 62
Open market transactions, 10
Outstanding, by type and ownership, 30,31
Rates, 3,25
Utilities, production, 47
VETERANS Administration, 38, 39
WEEKLY reporting banks, 18-22
Wholesale (producer) prices, 44,49
YIELDS (See Interest rates)
A82
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
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Boundaries of Federal Reserve Branch
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Federal Reserve Bank Cities
Federal Reserve Branch Cities
Federal Reserve Bank Facility
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Board of Governors of the Federal Reserve
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