Full text of Federal Reserve Bulletin : February 1985
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VOLUME 71 •
NUMBER 2 •
FEBRUARY
1985
FEDERAL RESERVE
BULLETIN
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON,
D.C.
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • Stephen H. Axilrod • Michael Bradfield • S. David Frost
• Griffith L. Garwood • James L. Kichline • 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. It is assisted by the Economic Editing Unit headed by Mendelle T. Berenson,
the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services.
Table of Contents
75 REGULATORY
RESPONSES
TO CHANGES
IN THE CONSUMER
FINANCIAL
SERVICES INDUSTR Y
The Board's actions to remove requirements that might hinder the financial services industry's implementation of a product or service and regulatory revisions to
maintain the consumer protections intended
by the Congress are discussed.
82 TREASURY AND FEDERAL
RESERVE
FOREIGN EXCHANGE
OPERATIONS.INTERIM
REPORT
During the three-month period from August
through October, the dollar continued to
advance from the levels reached in midsummer.
85 INDUSTRIAL
PRODUCTION
O u t p u t r o s e 0 . 4 p e r c e n t in N o v e m b e r .
87
ANNOUNCEMENTS
Change in the discount rate.
Appointment of new members to the Consumer Advisory Council.
Financial results of priced services.
Schedule for final Board action on placement of third-party commercial paper.
Extension of registration period for certain
bank holding companies.
Proposed action.
Erratum in text of BULLETIN article.
Publication of the seventh edition of The
Federal Reserve System—Purposes and
Functions.
Changes in Board staff.
Admission of eight state banks to membership in the Federal Reserve System.
92 RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET
COMMITTEE
At its meeting on November 7, 1984, the
Committee adopted a directive that called
for a somewhat reduced degree of restraint
on reserve positions. The members expected such an approach to policy implementation to continue to be consistent with
growth of M2 and M3 at annual rates of
about IVi and 9 percent respectively as
established at the early October meeting for
the period from September to December.
Given the appreciable decline in Ml during
October, its growth over the three-month
period was now expected to be at an annual
rate of around 3 percent, down from the 6
percent rate anticipated at the October
meeting. The members recognized the volatility of this monetary measure and indicated that more rapid growth would be acceptable for the quarter. Lesser restraint on
reserve conditions would be sought if the
monetary aggregates grew significantly below expectations, evaluated in the context
of the strength of the business expansion
and inflationary pressures, conditions in
domestic and international financial markets, and the rate of growth in domestic
nonfinancial debt. Conversely, greater restraint might be acceptable in the event of
substantially more rapid growth in the monetary aggregates than was currently expected, provided such growth was associated
with evidence that economic activity and
inflationary pressures were strengthening
significantly. It was agreed that the intermeeting range for the federal funds rate
should be reduced by 1 percentage point to
7 to 11 percent.
9 9 LEGAL
DEVELOPMENTS
A 7 0 BOARD
Various bank holding company, bank service corporation, and bank merger orders;
and pending cases.
A i FINANCIAL
AND BUSINESS
STATISTICS
A3 Domestic Financial Statistics
A45 Domestic Nonfinancial Statistics
A53 International Statistics
A 6 9 GUIDE
TO TABULAR
STATISTICAL
TABLES
RELEASES,
FEDERAL
OPEN
AND STAFF;
INDEX
AND
MARKET
COUNCILS
BOARD
TO STATISTICAL
A 7 9 FEDERAL RESERVE
AND
OFFICES
STAFF
COMMITTEE
ADVISORY
A 7 4 FEDERAL RESERVE
PUBLICATIONS
AH
PRESENTATION,
AND
All
OF GOVERNORS
TABLES
BANKS,
BRANCHES,
SPECIAL
A 8 0 MAP
OF FEDERAL
\
RESERVE
SYSTEM
Regulatory Responses to Changes in the
Consumer Financial Services Industry
Lynn C. Goldfaden and Gerald P. Hurst of the
Board's Division of Consumer and Community
Affairs prepared this article.
Not long ago, consumers made payments almost
exclusively by check or cash. Increasingly, they
are making payments electronically, using debit
cards, personal computers, and telephones. In
fact, in some areas of the country, most major
financial transactions can be conducted without
cash or checks. Merchants, once the sole purveyors of revolving credit, have been joined by a
variety of financial service providers that offer
such credit by means of plastic cards. Further
complicating the picture, cards once used either
for obtaining cash at automated teller machines
or for making purchases are now sometimes used
for both. The financial services industry is
changing almost constantly as financial institutions and relative newcomers to the industry
examine new technologies, explore new freedoms afforded by deregulation, and create new
products and services for their customers.
In administering regulations that implement
the Truth in Lending Act, the Electronic Fund
Transfer Act, and other consumer protection
statutes, the Federal Reserve Board is challenged by these changes in technology, operations, and product offerings. Rule writing under
these conditions is often a delicate balancing act.
On the one hand, the Board works to avoid
regulatory roadblocks to progress in the industry; on the other, it must ensure that consumers
are protected as the statutes mandate.
This article discusses the Board's recent
rulewriting under Regulations Z and E to accommodate industry changes and explores some of
the new and developing credit and noncredit
products that may require regulatory adjustments. The article focuses on two specific efforts: actions to remove requirements that may
hinder the industry's implementation of a product or service, and regulatory revisions to maintain the consumer protections intended by the
Congress.
CHANGES
IN THE CONSUMER
FINANCIAL
SER VICES IND US TR Y
In the past, consumers had ready access to a
limited number of financial products and services
offered by a few providers. For example, in
many areas of the country, consumers seeking
loans could apply to only a few lenders. Except
for national retailers such as Sears Roebuck and
Montgomery Ward, and a few national finance
companies, most creditors served only local markets. Choices for checking and deposit services
also were limited. Financial institutions did not
solicit funds from consumers across the country,
nor did they offer customers access to their
deposits through any nationally dispersed system.
Today, consumers can choose among a wider
range of financial services through a variety of
delivery systems. Many systems are electronic,
using automated teller machines (ATMs) and
personal computers. While consumers are confronting an ever more complex array of financial
services, financial institutions, now paying market rates of interest on deposits, are facing the
challenge of pricing their consumer products to
recover the costs of providing these services.
Variety will be one key characteristic of financial
services for consumers; increased costs for many
consumers probably will be another. Consumers
increasingly will be required to pay for each
service through explicit fees and charges.
As products and services continue to grow in
number and complexity, consumers will face the
difficult task of choosing among them in an effort
76
Federal Reserve Bulletin • February 1985
to use those that best satisfy their purposes. As a
result, consumers' needs for information will
increase. They will want to assess the comparative costs as well as the legal protections they
will have. In some cases, the consumer's access
to information about the products and their costs
and the guarantee of desired protections are
already ensured by existing provisions in Regulations Z and E. In other cases, the information
and safeguards may not be legally ensured without changes. The Board must balance the need
for disclosures and protections with the need of
the industry for freedom from impediments to
progress.
THE CHANGING
ENVIRONMENT
REGULATORY
The regulatory environment has changed dramatically in the past several years. The latter
part of the 1970s was marked by greater sensitivity to the burdens of government regulation.
Among the laws enacted to reduce the costs of
compliance with government regulations was the
Regulatory Flexibility Act, which requires agencies to review their regulations periodically, to
analyze the effects of those regulations on small
businesses, and to make exceptions in coverage
when appropriate.
The Congress also acted directly to reduce the
burdens of compliance. For example, it simplified the Truth in Lending Act by reducing the
number of required disclosures and excluding
real estate brokers from the act's coverage.
Other such actions may be taken. In 1984, the
Senate passed a bill to simplify the Consumer
Leasing Act, and it is likely that the Congress
will consider such proposed legislation again in
1985. The compliance burden associated with the
Home Mortgage Disclosure Act may also be
reduced when that act is considered for renewal
in 1985.
In spite of the increased sensitivity to regulatory burdens, no consumer statutes governing
financial services have been repealed nor have
any implementing regulations been eliminated,
and such actions are not expected. The Board
nonetheless has responded in other ways to the
regulatory reform movement in its administration of these laws, as reflected in certain of its
interpretations of the Truth in Lending and Electronic Fund Transfer Acts.
The Truth in Lending
Act and Regulation
Z
The Federal Reserve Board has primary rulewriting authority for a number of federal consumer protection statutes that affect consumer financial services. The first such authority to be
assigned to the Board was under the Truth in
Lending Act (TILA). The Board wrote the original Regulation Z to implement the act in 1969,
and simplified it in 1981 to reflect the Truth in
Lending Simplification and Reform Act. As Regulation Z states, the act's purpose is to "promote
the informed use of consumer credit by requiring
disclosures about its terms and cost." In addition, the TILA protects consumers from unfair
practices in credit billing and in the use of credit
cards.
In general, Regulation Z establishes rules for
the timely disclosure of credit costs and terms. It
requires disclosure before consumers become
obligated on closed-end credit transactions, such
as mortgages and automobile loans; on open-end
credit accounts, such as overdraft checking plans
and cash advance lines; and on credit card plans,
such as retail credit cards. In addition, the regulation requires creditors to give consumers the
right to cancel certain transactions, to maintain
procedures for handling complaints about billing
errors in open-end credit plans, and to issue
credit cards only in response to a request. The
TILA also limits a cardholder's liability for unauthorized use of a credit card to $50.
The Electronic
and Regulation
Fund Transfer
E
Act
The Electronic Fund Transfer Act (EFTA),
passed in 1978, was implemented by the Board in
Regulation E. As that regulation states, the act
establishes "the basic rights, liabilities, and responsibilities of consumers who use electronic
money transfer services and of financial institutions that offer these services." The Congress
found that "the use of electronic systems to
transfer funds provides the potential for substantial benefits to consumers." The Congress also
Regulatory Responses to Changes in the Consumer Financial Services Industry
found, however, that these developing systems
have unique characteristics that made the application of the existing consumer protection laws
unclear. The primary objective of the EFTA was
to provide for individual consumer rights.
Regulation E requires that institutions offering
electronic fund transfer services provide consumers with disclosures of terms and conditions
before the first electronic transfer is made on the
consumer's account. It also requires periodic
statements of account activity. In addition, the
regulation restricts the unsolicited issuance of
access devices (such as automated teller machine
cards), sets limits on the consumer's liability for
unauthorized electronic fund transfers, and requires that institutions maintain procedures for
resolving errors.
Regulation E is the most extensive regulatory
action in recent years to provide protections for
consumers in their dealings with the financial
services industry. It applies to all consumer asset
accounts—such as checking accounts and money
market mutual funds—that are accessible by
electronic fund transfers.
When it acted, the Congress could not be
certain how the EFT systems would work and
what services they would provide. For that reason, it gave the Federal Reserve Board broad
rulemaking authority to ensure effective implementation of the act. The Congress directed the
Board to implement the law without unnecessarily inhibiting the development of technology or
imposing undue costs and burdens on financial
institutions—a worthwhile goal, but a formidable
task.
REGULATORY
TO INDUSTRY
RESPONSES
CHANGE
Over the past several years, the Board has
revised its regulations in response to changes in
the financial products and delivery systems offered to consumers. In doing so, it has sought to
close gaps in consumer protection from such
changes, yet avoid hindering the industry's implementation of a new or improved product or
service.
In considering amendments and interpretations of its regulations and in its recommendations to the Congress for statutory changes, the
77
Board has become increasingly aware of the
necessity of balancing the interests of industry
and consumers. The following examples of regulatory actions under Regulations Z and E illustrate the need for rulemaking that is responsive
to technological change.
Actions
to Remove
Potential
Roadblocks
Generally, the issues requiring Board attention
have arisen from the development of new products or from changes to make existing ones more
profitable for the industry or more attractive to
consumers. At times these changes have been
facilitated by regulatory adjustments.
Home Equity Credit Lines. The TIL A gives
the consumer a three-day period in which to
cancel a credit agreement secured by the consumer's home (other than a purchase money
mortgage). The Congress created this right, commonly referred to as the right of rescission, to
protect consumers from entering too hastily into
transactions secured by their homes.
In 1968, when Regulation Z was first written,
neither the Congress nor the Board contemplated
the development of the open-end credit plans
secured by home equity now being offered.
These new open-end credit plans allow homeowners to use what may be their most valuable
asset as a source of funds without liquidating it.
In addition, as with all open-end lines of credit,
the plans offer consumers the convenience of
having preapproved credit available for ready
use.
In the view of the industry, however, the
TILA rescission rules posed a formidable obstacle to the new credit offering. Before a consumer
could obtain a cash advance, a creditor would be
required to give notice of the right to rescind the
transaction, and then wait three days to see
whether the consumer exercised that right. If the
right of rescission were required for each transaction, and consumers thus had to wait three
days, the primary advantage of the plan—immediate credit—would be eliminated. Such openend credit plans seemingly could not work within
the bounds of the traditional rescission rules.
After considering the issue, the Board amended the regulation to provide more workable re-
78
Federal Reserve Bulletin • February 1985
scission rules. In general, the rules provided the
consumer with the right to rescind only upon the
account's opening and at the time the credit limit
was increased. The Board's authority to act was
challenged by a consumer group and the amendment was subsequently dropped. The Congress,
however, later passed legislation similar to the
rules adopted by the Board.
Credit Extensions at Automated Teller Machines. Another illustration of the need for flexible rulemaking comes from ATM sharing. ATM
systems have become more and more important
in providing consumers access to financial services. Many financial institutions now participate in ATM networks, in which the customers
of one financial institution can use their debit
cards at the ATMs of other institutions, often in
other cities and states. (A debit card allows
withdrawals or transfers of funds from a checking, savings, or other consumer asset account.)
Institutions are also allowing their customers to
use credit cards to access their credit lines
through ATMs of other institutions.
An institution that allows its customers to use
ATMs owned by other institutions usually is
assessed a fee by the system or by the ATM
owner. This fee covers the use of the interchange
system and compensates the ATM-operating institution. Although the fee may be only 50 or 75
cents per transaction, an institution with many
customers using the service can incur substantial
costs. In today's environment of explicit pricing
for services, an institution typically would want
to pass on the costs. The issue for the Board was
whether a financial institution could impose this
charge on the credit cardholders without treating
it as a "finance charge" under Regulation Z.
Such treatment would require special computations and disclosures affecting the annual percentage rate (APR) shown on the periodic statements.
After considering the advantages and disadvantages to consumers and the industry, the
Board excluded the fee from the finance
charge—provided the same ATM fee is imposed
on customers who use debit cards. The Board
was concerned that institutions might decide that
the costs of including the fee in the finance
charge and APR were too great to make it
worthwhile to offer this convenient banking service to their customers. Nevertheless, even
though the fee will not be treated as a finance
charge or reflected in the APR, Regulation Z still
requires its disclosure, both at the time the
account is opened and on the periodic statement.
Receipt Requirements for Home Banking
Transactions. Regulation E requires that consumers making transactions at electronic terminals be furnished with a receipt. This requirement is intended to provide the consumer with
written documentation for use as proof of payment. It presented a problem for home banking.
Home banking allows consumers to perform
banking-related transactions at home with a personal computer. If the receipt requirement had
been applied to transactions at a home banking
terminal, consumers would have needed a printer. Requiring institutions to condition the home
banking service on the availability of a printer
would have increased substantially the program's cost both to the consumer and to the
financial institution. The receipt requirement
might well have delayed or caused the suspension of home banking programs. To accommodate the development of these systems, the
Board therefore excepted home banking terminals from the receipt requirement.
Actions
to Ensure Consumer
Protections
Even as the Board acts to remove regulatory
roadblocks for the industry, it must also exercise
flexibility to ensure that the consumer protections mandated by the Congress are applied to
new products and services. Two recent regulatory amendments provide examples.
Telephone Credit Cards. One amendment addressed an issue raised by changes in the marketplace involving the deregulation of the telecommunications industry and the proliferation of
telephone credit cards. AT&T alone has issued
approximately 50 million cards. At the same
time, the media have been reporting cases of lost
or stolen telephone credit cards and thousands of
dollars worth of telephone calls made with stolen
cards or numbers.
Regulatory Responses to Changes in the Consumer Financial Services Industry
The TILA prohibits the unsolicited issuance of
credit cards and limits the consumer's liability
for unauthorized card use. However, the TILA
also generally exempts certain public utility
transactions. This exemption caused uncertainty
about whether the telephone cards were subject
to the act's prohibition against unsolicited distribution of credit cards and to its limits on consumer liability. Other circumstances could contribute
to consumer confusion: first, the physical resemblance between telephone cards and retail and
bank credit cards; and second, the spreading
availability of telephone services through the use
of more traditional credit cards, such as travel
and entertainment cards.
In November 1984, the Board amended Regulation Z to make clear that all credit card transactions are subject to the rules that prohibit unsolicited issuance and that limit consumer liability
for unauthorized card use. The Board realized
that, in the absence of coverage by the regulation, consumers would be without significant
protections when using telephone cards. Moreover, both consumers and the industry would
find it difficult to determine when the federal
protections applied and when they did not.
Point-of-Sale Debit Cards. Another regulatory
issue involved the tension between Regulation
E's definition of an electronic fund transfer and
the widening use of debit cards at point-of-sale
terminals. The regulation generally covers an
electronic fund transfer, defined as a transfer
that is initiated electronically, and excludes a
transaction that is "originated by check, draft, or
similar paper instrument."
Since the enactment of the EFTA and adoption of Regulation E, the number of debit cards
issued for point-of-sale transactions has increased from approximately 490,000 to more
than 7 million. Equally important, the use of
debit cards at the point of sale does not always
involve an electronic terminal as had been anticipated earlier. Instead, debit card transactions at
the point of sale are being initiated in most cases
by a sales slip that is imprinted mechanically—
just like a credit card. As a consequence, many
financial institutions viewed the transfers as not
covered by Regulation E. At best, the treatment
of transfers resulting from debit card transac-
79
tions was unclear. If Regulation E did not cover
such debit card transactions, consumers could
not be assured of the customary federal protections, such as limitations on liability for unauthorized use and error-resolution rights.
In October 1984, the Board amended Regulation E to cover all transfers resulting from debit
card transactions, including those not involving
electronic terminals at the time of the transaction, such as at the point of sale. In making this
decision, the Board relied heavily on practical as
well as policy considerations. For example, the
Board concluded that the similarity between
credit and debit cards, both in appearance and
function, could result in confusion for consumers, who might assume that they were protected
by federal law when, in fact, they were not. This
uncertainty, the Board realized, could be heightened because a single debit card can be used both
in transactions with electronic terminals (as anticipated by the Congress) and in paper-based
transactions. Finally, the Board concluded that
the primary objective of the act, to provide
individual consumer rights, would be unfulfilled
for an increasing number of consumers in the
absence of Regulation E coverage.
A LOOK
AT THE
FUTURE
The consumer financial services industry of the
future is likely to reflect more changes. Electronics will play an even larger part in the way
consumers manage their financial transactions.
Consumers probably will find it only rarely necessary to visit the office of a financial institution.
More of them will have their wages electronically
deposited into an account, possibly on a daily
basis. They probably will be able to obtain cash
and make purchases at any merchant establishment with an all-purpose card that can function
as both a debit card and a credit card. Through
home banking, consumers will be able to pay
their bills, transfer funds to a third party, and
even apply for a loan.
As such changes occur, the Board undoubtedly will face new issues that call for adjusting
regulations in accordance with both the industry's need to develop new products and services
and the needs of consumers.
80
Federal Reserve Bulletin • February 1985
Home
Banking
According to one count, 41 banks now offer
home banking services—many of them pilot programs. Numerous others have declared their
intention to enter the market. A recent survey
reported approximately 33,000 consumers banking at home, an increase from 25,000 in mid-1984.
This is a very small percentage of the potential
market, generally estimated to be in the millions.
The potential market is based on the number of
consumers who own or intend to buy personal
computers with modems (the devices that permit
home terminals to communicate over telephone
lines with host computers, making home banking
possible). The degree of consumer acceptance of
this new product is still undetermined. Some
observers believe that institutions now offering
home banking are a bit ahead of the marketplace,
inasmuch as the number of households with
computers is still small. Because ownership of
personal computers is spreading, however, home
banking is likely to play a larger role in the
financial services industry of the future.
A variety of issues are likely to arise around
home banking. For example, Regulations Z and
E both require disclosures in writing that the
consumer may retain. Traditionally, this has
meant disclosures on paper that the consumer
could keep forever. In contrast, home banking
systems may make disclosures available on the
computer screen only for a short time—for example, up to 90 days. Thus, if a consumer has a
question about a debit or credit transaction, for
example, five months after it takes place, the
consumer may not be able to retrieve the periodic statement reflecting the transaction. Should
information that is retrievable for a limited time
satisfy the disclosure requirements?
Other issues arise from the ability to use the
home terminal to obtain credit. If, for example,
the terminal were used for unauthorized credit
extensions, would the consumer be protected by
the Regulation Z limit on liability for unauthorized use? Or if a consumer used the terminal to
make a purchase on credit, would the consumer
have the ability to assert against the creditor a
claim or defense that arises out of the purchase,
as the regulation provides for credit card transactions?
Other potential home banking issues related to
privacy and security concerns are outside the
scope of current legislation. How should home
banking systems be designed to prevent unauthorized users from breaking into a consumer's
asset account or line of credit and transferring
funds at will? Is the information sufficiently
secure to protect a consumer's right to financial
privacy? The privacy and security aspects are
important marketing issues: if consumers believe
the systems are not secure, they may be reluctant to participate in this service.
Finally, some consumer interest groups have
expressed concern that lower-income consumers, potentially unable to afford home banking
systems, may be effectively denied banking services if home banking gains wide acceptance and
replaces traditional services. For example, certain services may be available only through home
banking, and increased use of home banking
could lead to branch closings.
In the future, some of these issues may well
require the Board's attention. Any resulting regulatory adjustments must reflect the Board's
responsibility to maintain the consumer protections intended by the statutes and regulations, as
well as the Board's commitment not to hinder the
development of useful technologies.
Evolving
Card-Based
Payment
Systems
Other issues may be raised for the Congress by
the evolving card-based payment system—specifically, the increasing use of debit cards. Consumers are able to make purchases from more
than 2 million merchants by using bank credit
cards, and last year, the 120 million bank credit
cards accounted for transactions in excess of
$100 billion. Increasingly, a relatively new means
of payment—the debit card—is available to consumers for use at the point of sale.
Estimates place the number of debit cards at
more than 100 million. Most of these cards are
usable only at ATMs, but an increasing number
can be used at stores. In addition, the 7 million
debit cards now issued under the VISA or MasterCard trade names can be used in the thousands of stores that also accept those credit
Regulatory Responses to Changes in the Consumer Financial Services Industry
cards. Fewer than 500,000 of these debit cards
existed in 1979.
Debit cards, indistinguishable in appearance
from credit cards, are likely to become increasingly important as a means of payment at the
point of sale. Financial institutions will promote
them because it costs less to process a debit card
transaction than a check transaction. In a few
years, the distinction between bank credit and
debit cards will probably disappear; multipurpose cards, having both credit and debit functions, will replace the ordinary credit card.
Because either a debit or a credit card can be
used to pay for purchases and because both
types of cards are often processed through the
same system, one issue is whether the rules for
the cards should be identical. Currently, some
rules in Regulation Z for credit cards differ from
those in Regulation E for debit cards—for example, the limitations on liability for unauthorized
use of cards and error-resolution rights. As an
illustration, Regulation Z limits a consumer's
liability for unauthorized use of a lost or stolen
credit card to $50. Regulation E, on the other
hand, limits liability from a lost or stolen debit
card to $50 only if the consumer notifies the
financial institution of the loss or theft within two
business days; if the consumer fails to provide
such notice, the potential liability increases to
$500, and in some cases it can be unlimited.
Whether action should be taken to eliminate
the differences in the statutes, either in whole or
in part, is a complex issue. Some of the questions
that would have to be answered are the following: Since many institutions have procedures
already in place to comply with the different
requirements, would such action truly reduce
81
compliance burdens? If identical rules were
adopted, how would the burdens for institutions
that already have programs in place compare
with the benefits for institutions that are just now
developing a credit-debit card program? Are
consumers confused by the different rules? Are
there good reasons for different rules for credit
and debit cards? Answering such questions will
require careful consideration of the advantages
and disadvantages to both consumers and the
industry before changes to the existing statutes
can be addressed.
CONCLUSION
To accommodate changes in the consumer financial services industry and to ensure that the
regulations continue to provide the consumer
protections intended by the Congress, the Federal Reserve Board has often found it necessary
to revise its consumer protection regulations.
Undoubtedly, continuing developments in the
industry will present new issues and will necessitate further revisions. Without revisions,
the industry could face difficulties in complying
with regulatory requirements; or consumers
could encounter problems if the existing regulatory provisions do not provide needed protections.
Administering the regulations will be a difficult
task in this period of rapid change fueled by
evolving technologies. Successful regulation will
allow the industry to develop products and services that are profitable and meet consumers'
needs, without sacrificing the protections the
Congress intended for consumers.
•
82
Treasury and Federal Reserve Foreign
Exchange Operations: Interim Report
This interim report, covering the period August
through October 1984, is the twenty-fourth of a
series providing information on Treasury and
System foreign exchange operations to supplement the regular series of semiannual reports
that are usually issued each March and September. It was prepared by Sam Y. Cross, Manager
of Foreign Operations of the System Open Market Account and Executive Vice President in
charge of the Foreign Group of the Federal
Reserve Bank of New York and Richard F.
Alford, Senior Economist.
During the three-month period from August
through October, the dollar continued to advance from the levels reached in midsummer.
After pausing in August, it resumed its rise to set
new highs against many European currencies in
September and again in October. Although it
eased somewhat in the final weeks of the period,
the dollar closed up on balance more than 3
percent against the German mark and other
European Monetary System currencies, and 6
percent against sterling. Against the Japanese
yen, the Canadian dollar, and the Swiss franc,
however, the dollar registered little net change.
On a trade-weighted basis the dollar closed up
almost 3 percent.
Throughout this period, the dollar drew support from its role as a major medium of investment. Inflationary expectations worldwide moderated further in response both to price
performance in the United States that was better
than generally expected and to renewed weakness in several important commodity prices,
especially petroleum. This development enhanced the climate for investment in financial
assets in general and in U.S. dollar-denominated
securities in particular. Dollar interest rates,
after taking account of anticipated future infla-
tion, were perceived to be relatively attractive,
even though market interest rates declined almost continuously in the United States and considerably more than in most other major
countries. Moreover, investors remained impressed by the current economic strength of the
United States relative to Europe, by the flexibility of U.S. markets, and by the perceived lower
level of labor-management conflict. They expected the administration's economic policies to
be reaffirmed in the forthcoming election. The
repeal of the withholding tax on foreign-held
U.S. securities and anticipation of the first of the
Treasury's "foreign-targeted" issues were also
cited at times as stimulating interest in U.S.
securities.
In the weeks after Labor Day, the dollar was
bid up further in response to a variety of shorterterm factors. With the dollar firm in the face of a
record U.S. trade deficit reported for July, evidence of some slowing of the domestic economy,
1. Federal Reserve reciprocal currency arrangements
Millions of dollars
Institution
Amount of facility
October 31, 1983
Amount of facility
October 31, 1984
Austrian National Bank . . .
National Bank of Belgium .
Bank of Canada
National Bank of Denmark
Bank of England
Bank of France
German Federal Bank
Bank of Italy
Bank of Japan
250
1,000
2,000
250
3,000
2,000
6,000
3,000
5,000
250
1,000
2,000
• 250
3,000
2,000
6,000
3,000
5,000
Bank of Mexico
Netherlands Bank
Bank of Norway
Bank of Sweden
Swiss National Bank
Bank for International
Settlements:
Swiss francs-dollars . . . .
Other authorized
European currenciesdollars
700
500
250
300
4,000
700
500
250
300
4,000
600
600
1,250
1,250
30,100
30,100
Total
83
and easing U.S. interest rates, many market
participants began to purchase dollars to meet
their remaining requirements for the year. Recurrent reports of commercial demand for dollars,
together with the investment interest, helped to
turn sentiment toward the dollar decidedly more
bullish. As the dollar rose to break through
anticipated resistance levels, some market professionals began to position more aggressively.
The dollar moved above the DM 3.00 level
against the German mark by September 11 and
ten days later hit an 11V2 year high of DM 3.1765.
In this atmosphere, market observers decided
that foreign central banks were less likely than
before to resist depreciation of their currencies,
either through intervention or through a tightening of domestic monetary policy. The economic
recovery in Europe was viewed as disappointingly weak, with unemployment rates holding near
all-time highs. The further stimulus provided to
these countries' export industries was thought to
be welcome. And, with inflationary expectations
more subdued, the impact of a weakening of the
European currencies on their domestic prices
was thought to present less of a risk to the
authorities' anti-inflation policies. These perceptions appeared to be confirmed during the first
three weeks of September by the lack of forceful
official action designed to curb the dollar's rise.
In addition, market professionals interpreted
statements of foreign officials as tolerating developments in the exchange markets.
On September 21, however, the Bundesbank
entered the exchange market to sell aggressively
a substantial amount of dollars, and the dollar fell
sharply. This was the first of several highly
visible Bundesbank operations that took place
during the remainder of the period under review.
The U.S. authorities had intervened on one
occasion earlier in September to buy $50 million
equivalent of marks. Following the German operation of September 21, the U.S. authorities
again entered the market, and bought $135 million of marks during three days in the subsequent
week.
The dollar then moved up in mid-October to
test the highs reached in September. The
Bundesbank again operated substantially to sell
dollars. On October 17, the U.S. authorities also
entered the market and bought $95 million equiv-
alent of marks. All of these U.S. operations,
which totaled $280 million during the threemonth period and were evenly divided between
the Federal Reserve and the Treasury, were
undertaken to counter disorderly trading conditions.
In response to the operations, during September and October by various central banks, market participants were more sensitive to the possibility that the Bundesbank and other central
banks might intervene, either individually or
concertedly. They also came to believe that the
central banks on the continent would be slow to
let short-term interest rates in their countries
ease in sympathy with the declines taking place
in the United States, preferring to let a narrowing
of adverse interest rate differentials give some
further support to their currencies. Also, after
mid-October the decline in U.S. short-term interest rates accelerated. The Federal Reserve was
perceived as having room to be more accommodative in its monetary policy given the decline in
GNP growth for the third quarter, slow monetary
growth for the period under review, and further
evidence of weak oil prices and moderate inflation. Market professionals therefore were more
reluctant to buy dollars until they could gauge
the extent that a narrowing of interest differentials would come to influence exchange rate
relationships. As a result, the dollar eased somewhat in late October.
During the three-month period there were no
drawings on credit facilities of the U.S. monetary
authorities. On October 12, however, the Treasury Department announced that it had joined
with the Bank of Japan and the Bank of Korea in
arrangements to provide short-term financing to
the Central Bank of the Philippines totaling $80
million in support of the Philippine economic
adjustment program, which had been agreed
upon with the management of the International
Monetary Fund. The Treasury, through the Exchange Stabilization Fund (ESF), agreed to provide $45 million; the Bank of Japan, $30 million;
and the Bank of Korea, $5 million. Drawings on
the arrangements were to be made available
when the Managing Director of the IMF confirmed that the IMF had received assurances of
the availability of adequate financing in support
of the Philippine economic adjustment program
84
Federal Reserve Bulletin • February 1985
2. Net profits or losses ( - ) on U.S. Treasury and
Federal Reserve current foreign exchange
operations
Millions of dollars
Period
August 1 through
October 31, 1984
Valuation profits and losses on
outstanding assets and
liabilities as of October
31, 1984
Federal
Reserve
U.S. Treasury
Exchange
Stabilization
Fund
0
0
-1,233.6
-802.0
NOTE. Data are on a value-date basis.
and had formally submitted the Philippine request for a standby arrangement to the Executive
Board of the IMF. It was understood that the
drawings would be repaid at the time the Philippines draws from the fund. Shortly after the end
of the period, the conditions for the disbursement of the funds were met and the financing
provided.
From August through October, the Federal
Reserve and the ESF realized no profits or losses
from exchange transactions. As of October 31,
cumulative bookkeeping, or valuation, losses on
outstanding foreign currency balances were
$1,233.6 million for the Federal Reserve and
$802.0 million for the ESF. Valuation gains and
losses represent the increase or decrease in the
dollar value of outstanding currency assets and
liabilities, using end-of-period exchange rates as
compared with rates of acquisition. These valuation losses reflect the dollar's appreciation since
the foreign currencies were acquired.
The Federal Reserve and the Treasury invest
foreign currency balances acquired in the market
as a result of their foreign exchange operations in
a variety of instruments that yield market-related
rates of return and that have a high degree of
quality and liquidity. As of October 31, under the
authority provided by the Monetary Control Act
of 1980, the Federal Reserve had invested the
equivalent of $1,121.3 million of its foreign currency resources in securities issued by foreign
governments. In addition, the ESF held the
equivalent of $1,683.6 million in such securities.
85
Industrial Production
Released for publication December 14
Industrial production increased an estimated 0.4
percent in November following declines of 0.6
percent in September and 0.4 percent in October;
output levels for these two months were revised
downward. In November, output of consumer
goods rose 1.0 percent led by a rebound of IV2
percent in automotive products, while the pro1967=100
All series are seasonally adjusted and are plotted on a ratio scale.
duction of materials increased 0.5 percent. However, the output of home goods, business equipment, and construction supplies decreased again.
At 165.0 percent of the 1967 average, the index
for November was 6.2 percent above a year
earlier but about half a percent below the levels
attained in July and August.
In market groupings, output of durable consumer goods increased 2.5 percent as auto as1967 =
100
Auto sales and stocks include imports. Latest figures: November.
86
Federal Reserve Bulletin • February 1985
1967 = 100
Percentage change from preceding month
1984
1984
Grouping
Oct.
Nov.
July
Aug.
Sept.
Oct.
Nov.
Percentage
change,
Nov. 1983
to N o v .
1984
Major market groupings
Total industrial production
164.3
165.0
.9
.1
-.6
-.4
.4
6.2
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment
Defense and space
Intermediate products
Construction supplies
Materials
166.5
164.5
161.7
158.1
163.1
185.0
140.5
173.8
158.5
161.0
167.1
165.5
163.3
162.1
163.7
184.4
141.7
173.4
158.1
161.8
1.3
1.3
.5
.1
.7
2.4
1.8
1.3
.6
.4
-.1
-.1
-.8
-.7
-.9
1.1
.7
-.4
-.6
.3
-.5
-.4
-.6
-1.8
.0
-.6
1.2
-.9
-1.1
-.8
.1
.0
.1
-.9
.4
-.8
1.4
.2
-.4
-1.0
.4
.6
1.0
2.5
.4
-.3
.9
-.2
-.3
.5
7.3
8.0
4.6
4.0
4.9
12.4
14.3
4.8
4.3
4.7
-.1
-.4
.3
-3.9
-.1
.4
.5
.2
.8
.2
6.8
9.4
3.8
2.7
2.7
Major industry groupings
Manufacturing
Durable
Nondurable
Mining
Utilities
166.4
156.3
181.0
123.4
180.7
167.0
157.1
181.4
124.4
181.1
1.0
1.5
.3
2.3
-1.4
.2
.4
-.1
-1.2
-.7
-.6
-.5
-.7
.1
.1
NOTE. Indexes are seasonally adjusted.
semblies rose to an annual rate of 7.9 million
units in November following the strike-depressed rates of about 7.0 million units in both
September and October. Production of home
goods, however, fell 0.6 percent in November
following a revised 0.9 percent drop in October.
Output of nondurable consumer goods rose moderately further, and defense and space equipment
continued to advance strongly. Production of
business equipment edged lower in November,
and revised data now indicate declines for the
preceding two months as well. Production of
construction supplies also declined further in
November.
Production of durable, nondurable, and energy
materials increased in November. The November increase of 0.5 percent in the output of total
materials followed declines of about 1 percent in
each of the previous two months.
In industry groupings, manufacturing output
increased 0.4 percent in November after a decline of 0.6 percent in September and 0.1 percent
in October. Durable goods manufacturing increased 0.5 percent, largely reflecting gains in
motor vehicles and parts and in steel. Mining
output increased 0.8 percent in November following a decline of 3.9 percent in October.
Output of utilities edged up in November.
87
Announcements
CHANGE
IN THE DISCOUNT
RATE
The Federal Reserve Board approved a reduction in the discount rate from 8V2 percent to 8
percent, effective December 24, 1984.
The action is designed to bring the discount
rate into more appropriate alignment with shortterm market interest rates. It was taken in the
general context of the moderation of growth in
economic activity since midyear, continued relative stability or declines in sensitive commodity
prices, and the strength of the dollar internationally. Ml and M2 have remained within desired
longer-run ranges, but growth in Ml has on
average been relatively sluggish in recent
months.
In announcing the change, the Board voted on
requests submitted by the Federal Reserve
Banks of Boston, New York, Philadelphia,
Cleveland, Richmond, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco. The Board subsequently approved a similar
request from the Federal Reserve Bank of Atlanta, effective December 24. The discount rate is
the interest rate that is charged depository institutions when they borrow from their District
Federal Reserve Banks.
APPOINTMENT
OF NEW
CONSUMER
ADVISORY
MEMBERS
COUNCIL
TO
The Federal Reserve Board named on December
20, 1984, twelve new members to its Consumer
Advisory Council to replace members whose
terms are expiring or who resigned, and designated a new Chairman and Vice Chairman of the
Council.
The Council advises the Board in the field of
consumer financial protection laws and other
consumer-related matters. Its 30 members come
from all parts of the country and include a broad
representation of consumer and financial industry interests.
Mr. Timothy D. Marrinan was named Chairman to succeed Mr. Willard P. Ogburn, whose
term expired at year-end. Mr. Marrinan is Vice
President and Senior Corporate Counsel for First
Bank System, Inc., of Minneapolis, Minnesota.
His term runs through December 1985.
Mr. Thomas L. Clark, Jr., was named Vice
Chairman to succeed Mr. Marrinan. Mr. Clark is
the Deputy Superintendent of Banks for the New
York State Banking Department. His term runs
through December 1985.
The twelve new members, named for threeyear terms beginning January 1, 1985, are the
following:
Jonathan Brown, Washington, D . C . , is Acting Director/Staff Attorney for the Public Interest Research
Group, a public interest advocacy organization established by Ralph N a d e r . In this position, Mr. Brown
develops public interest positions on banking issues
and on consumer and neighborhood issues. Ongoing
activities include surveys on auto loan financing terms
and on deposit services, draft c o n s u m e r safeguards on
adjustable rate mortgages, and a host of community
reinvestment-related initiatives.
Theresa Faith Cummings, Springfield, Illinois, is
Executive Director of Springfield/Sangamon County
Community Action, Inc., a nonprofit social service
agency that w o r k s to improve conditions for all community residents, particularly the low-income, the
elderly, and the handicapped. In this capacity, Ms.
Cummings has addressed housing and financial needs
of residents. She has also been active in the local
consumer credit counseling service and a local credit
union. She is a m e m b e r of n u m e r o u s civic and professional associations.
Edward N . Lange, Seattle, Washington, is a partner
in the law firm of Davis, Wright, T o d d , Riese, and
Jones. H e represents a number of banks and other
financial institutions in the state of Washington (as
well as the state bankers association) on consumer
credit and other regulatory matters. Mr. Lange has
been active in the local and state bar associations and
serves as a Trustee of the Washington Student L o a n
Guaranty Association.
Fred S. M c C h e s n e y , Atlanta, Georgia, is Assistant
Professor of L a w at E m o r y University. H e previously
88
Federal Reserve Bulletin • February 1985
served as Associate Director for Policy and Evaluation
of the Federal Trade Commission's Bureau of Consumer Protection, and as an associate in a Washington, D . C . , law firm. Mr. McChesney is also an economist by profession and has authored many legal and
economic articles.
Helen Nelson, Mill Valley, California, serves as
President of the C o n s u m e r Research Foundation and
is on boards of directors of the C o n s u m e r Interest
Research Institute and San Francisco Consumer Action. H e r long involvement with the national consumer
movement includes service as President of the Consumer Federation of America and Vice President of
Consumers Union. Other past positions include Professor of Economics and Director of the Center for
Consumer Affairs at the University of Wisconsin Extension, and the California State C o n s u m e r Counsel.
Joseph L. Perkowski, Centerville, Minnesota, is the
Chief Executive Officer of the Minneapolis Federal
Employees Credit Union. H e currently serves as the
first Vice Chairman of the Credit Union National
Association, Inc., and as Chairman of the Minnesota
League of Credit Unions. H e has nearly 25 years of
credit union experience. Community activities include
participation in the L i o n ' s Club and in the community's zoning commission.
Brenda L. Schneider, Detroit, Michigan, is Director
of Community Relations at Manufacturers National
Bank. She is also a Director for the Bank Marketing
Association and serves on Michigan State's Community Reinvestment Committee. Ms. Schneider was instrumental in organizing Consumer E d u c a t o r s of
Michigan. She writes a newspaper column, " M o n e y
Go R o u n d , " which appears in more than 20 papers
thoughout the state. Ms. Schneider chairs the Personal
Money Management Task Force for the American
Bankers Association and has authored a financial
planning textbook for the American Institute of Banking, an educational arm of the American Bankers
Association.
Paula A. Slimak, Cleveland, Ohio, is Director of
Consumer Affairs for the city of Cleveland, and is
responsible for e n f o r c e m e n t of the city's Consumer
Protection Code and for consumer education initiatives. She formerly served as an aide to Congresswoman Mary Rose Oakar and Senator Howard M. Metzenbaum and has held various positions in the
communications field. Miss Slimak serves on the
Executive Boards of the National Association of Consumer Agency Administrators and the Society of Professional Journalists. She is also involved in a number
of community projects.
Ted L. Spurlock, N e w York, N e w York, is Vice
President and Director of Credit and C o n s u m e r Banking Services for the J . C . Penney C o m p a n y , Inc. H e
has more than 25 years' experience in the retail
industry. Mr. Spurlock serves as Trustee and as Vice
Chairman of the Executive Committee for the National Foundation for C o n s u m e r Credit, and as a Director
for the National Retail Merchants Association and the
International C o n s u m e r Credit Association. H e is also
on Advisory Councils for the Credit Research Center
at Purdue University and for Associated Credit Bureaus, Inc.
Mel Stiller, Boston, Massachusetts, is Executive
Director of the C o n s u m e r Credit Counseling Service
of Eastern Massachusetts. H e currently is a m e m b e r
of the Board of Trustees for the National Foundation
for Consumer Credit, and chairs the N e w England and
N e w York Regional Association of C o n s u m e r Credit
Counseling Services. Mr. Stiller also serves as Chairman of the C o n s u m e r Resource Council of Massachusetts, a consortium of organizations dealing in consumer education.
Christopher J. Sumner, Salt L a k e City, U t a h , is
President and Chief Executive Officer of Western
Savings and L o a n C o m p a n y , which has offices in
Utah, Washington, Oregon, and California. H e is
presently a m e m b e r of the Federal H o m e L o a n Bank
B o a r d ' s Savings and L o a n Advisory Council and
chairs the Federal National Mortgage Association's
National Advisory Council. In addition, Mr. Sumner is
a member of the Legislative Policy Committee of the
U.S. Savings and L o a n League and Chairman of the
Legislation Committee of the U t a h Savings and L o a n
League. H e is also a Director for the Ticor Mortgage
Insurance C o m p a n y , and a Trustee at Rowland H a l l St. M a r k ' s School. Mr. S u m n e r formerly served as a
founding director of the Neighborhood Housing Services of Salt L a k e City, as a m e m b e r of the Salt L a k e
City M a y o r ' s Housing Commission, as a director of
the Federal H o m e L o a n Bank of Seattle, and as a
member of the Federal H o m e L o a n Mortgage Corporation's Advisory Council. H e is a graduate of Brown
University and the University of Virginia L a w School.
Michael Zoroya, St. Louis, Missouri, is Senior Vice
President of Credit for The May Department Stores.
H e has been Chairman of the National Retail Merchants Association's Credit Management Division. H e
is also active with the American Retail Federations'
Legislative Steering Committee.
FINANCIAL
RESULTS
OF PRICED
SERVICES
The Federal Reserve Board on December 10,
1984, reported financial results of Federal Reserve priced service operations for the quarter
ended September 30, 1984.
The Board issues a report on priced services
annually and a priced service balance sheet and
income statement quarterly. The financial state-
Announcements
1. Pro forma balance sheet for priced services of
Federal Reserve Banks, September 30, 1984
89
2. Pro forma income statement for priced services of
Federal Reserve Banks
Millions of dollars
Millions of dollars
ASSETS
Short-term assets
Imputed reserve requirements on clearing
balances
Investment in marketable securities
Receivables
Materials and supplies
Prepaid expenses
Income or
expense item
166.8
1,223.1
49.6
4.7
2.8
Total short-term assets
1,446.9
Long-term assets
Premises
Furniture and equipment
Leases and leasehold improvements
175.0
98.9
2.2
Total long-term assets
276.1
Total assets
1,723.0
LIABILITIES
Short-term liabilities
Clearing balances
Net deferred availability items
Short-term debt
1,264.8
125.1
57.1
Total short-term liabilities
Long-term liabilities
Obligations under capital leases
Long-term debt
Total long-term liabilities
Income
Services provided
to depository institutions...
Expenses
Production expenses
LESS: Board approved
subsidies
.4
87.7
88.1
Other income and expenses
Investment income
Earnings credits
Income before income t a x e s . . . .
427.7
336.8
113.6
1.7
111.9
4.8
3.5
.7
2.2
1.2
.3
7.9
20.6
2.3
6.6
3.6
.9
1.4
34.0
61.7
22.9
33.3
31.9
332.0
95.7
30.8
Income from operations
after imputed costs
1,446.9
For nine
months
ending
September
30, 1984
142.7
Income from operations
Imputed costs
Interest on float
Interest on short-term debt
Interest on long-term debt
Sales taxes
FDIC insurance
Imputed income taxes
Total liabilities
For three
months
ending
September
30, 1984
93.2
87.7
5.5
24.3
67.1
9.4
25.9
14.9
41.2
6.0
17.9
1,535.0
Equity
188.0
Total liabilities and equity
1,723.0
Net income
MEMO
Targeted return on equity . . . .
NOTE. Accompanying notes are an integral part of these financial
statements.
ments are designed to reflect standard accounting practices, taking into account the nature of
the Federal Reserve's activities and its unique
position in this field.
NOTES
Balance
TO THE FINANCIAL
Sheet
(table
STATEMENTS
1)
Federal Reserve short-term assets represent assets such as cash and
due from balances, marketable securities, receivables, materials and
supplies, prepaid expenses, and items in the process of collection.
Long-term assets are primarily fixed assets such as premises and
equipment.
The imputed reserve requirements on clearing balances and investment in marketable securities reflect the Federal Reserve's treatment
of clearing balances maintained on deposit with Reserve Banks by
depository institutions and float. For balance sheet and income
statement presentation, clearing balances are reported on a basis
comparable with the reporting of compensating balances held by
respondent institutions with correspondents.
Net items in the process of collection or net deferred availability
items represent the amount of float as of the balance sheet date. The
balance in this account over the quarter is used to adjust the cost base
subject to recovery in accordance with the Monetary Control Act. It is
the difference between items in the process of collection (including
checks, coupons, securities, and ACH transactions) and deferred
availability items. Conventional accounting procedures would call for
the gross amount of items in the process of collection and deferred
availability items to be included on a balance sheet. However,
because the gross amounts have no implications for income, costs, or
the private sector adjustment factor (PSAF) calculation, and because
the inclusion of these amounts could lead to distortions and misinterpretations of the assets employed in the provision of priced services,
they are not reflected on the pro forma balance sheet. Over an
extended period of time, as the table on the following page demonstrates, float is generally an asset to the Federal Reserve. However,
fractional availability schedules for checks deposited with the Federal
Reserve by institutions selecting a fractional availability method to
pay for float are developed based on the average length of time
required to collect an item. Since the fractions established for September were lower than the actual collection experience at the end of
September, float for September 30 is reflected in the liabilities section
of the balance sheet.
The table on the following page shows the Federal Reserve's float
performance and float recovery. The amount of float recovered
through per-item fees is valued at the federal funds rate. The value of
this float is then added to the cost base subject to recovery for each
appropriate service.
Long-term assets that are reflected on the balance sheet have been
allocated to priced services using a direct-determination basis. The
direct-determination method utilizes the Federal Reserve's Planning
and Control System (PACS) to identify assets used solely in priced
services and to apportion assets used jointly in the provision of
different services to priced and nonpriced services. Included in longterm assets are leases that have been capitalized and that are related to
priced services. Additionally, resulting from changes to the PSAF
methodology for 1984, an estimate of the assets of the Board of
90
Federal Reserve Bulletin • February 1985
Imputed income taxes are calculated at the effective tax rate used in
the PSAF calculation applied to the net income before taxes.
The targeted return on equity represents the after-tax rate of return
on equity that the Federal Reserve would have earned based on a
model of bank holding companies.
Float Recovery of the Federal Reserve Banks,
1984:3
Daily average figures in millions of dollars
Item
Total
Unrecovered
Float subject to
Float recovered
Float recovered
Float recovered
Amount
float
float1
recovery
through " a s o f ' adjustments 2
through direct charges 2
through per-item fees 3
542.8
116.8
426.0
305.0
107.5
13.5
1. Includes float generated in providing services to government
agencies or in other central bank services and float not recovered as a
result of the ACH subsidy and the phase-in of other float recovery.
2. Interterritory check float may be recovered from depositing
institutions through adjustments to the institution's reserve or clearing
balance or by valuing the float at the federal funds rate and billing the
institution directly.
3. This float is valued at the federal funds rate and has been added
to the cost base subject to recovery in the second quarter.
Governors related to the development of priced services has been
included in long-term assets in the premises account.
A matched-book capital structure for those assets that are not "selffinancing" has been used to determine the liability and equity
amounts. Short-term assets are financed with short-term debt. Longterm assets are financed with long-term debt and equity in a proportion equal to the ratio of long-term debt and equity of the bank holding
companies used in the PSAF.
Other short-term liabilities include clearing balances maintained at
Reserve Banks and liabilities arising from float. Other long-term
liabilities consist of obligations on capital leases.
Pro Forma
Income
Statement
(table
2)
The income statement reflects the income and expenses for priced
services. Included in these amounts are Board-approved subsidies,
imputed float costs, imputed financing costs, and the income and cost
related to clearing balances.
Income reflects charges to depository institutions for priced services. This income is realized through one of two methods: direct
charges to an institution's deposit account or charges against accumulated earnings credits. Expenses include production expenses and the
expenses of Board staff working directly on the development of priced
services that amounted to $0.5 million in the third quarter of 1984 and
$1.4 million for the nine months ending September 30, 1984.
Board-approved subsidies consist of a program established for the
commercial automated clearinghouse (ACH) service. The incentive
pricing program established for the ACH service provides for fee
structures designed to recover an increasing share of expenses. In
1984, ACH revenues were intended to recover 60 percent of costs plus
the private sector adjustment. This incentive pricing program is being
phased out, with complete elimination planned by the end of 1985.
Imputed float costs include the value of float that was intended to be
recovered, either explicitly or through per-item fees, during the third
quarter of 1984 for the commercial check, automated clearinghouse,
noncash coupon collection, and book-entry securities transfer services. Also included in imputed costs is the interest on short- and longterm debt used to finance priced service assets through the PSAF and
the sales taxes and FDIC insurance assessment, which the Federal
Reserve would have paid had it been a private sector firm.
Other income and expenses are income on clearing balances and the
cost of earnings credits granted to depository institutions. In calculating the earnings credits granted on clearing balances after October 25,
1984, the Federal Reserve will take into account the fact that reserve
requirements would be applied to compensating balances held at
correspondent banks. Had the reserve adjustment to earnings credits
been in place in the third quarter, and assuming no resulting shift in
clearing balances, the expenses of earnings credits would have been
about $29.7 million with a resulting increase in net clearing balance
income of $2.2 million and an increase in net income of $1.4 million to
$16.3 million.
PLACEMENT
OF THIRD-PARTY
PAPER.- SCHEDULE FOR FINAL
COMMERCIAL
ACTION
The Federal Reserve Board on December 4,
1984, advised Bankers Trust Company that the
Board has substantial reason to believe that the
method of placing third-party commercial paper
used by the bank constitutes "selling" and "underwriting" of commercial paper in violation of
the Glass-Steagall Act.
The Board acted in response to a court action
directing the Board to resolve the issue—whether Bankers Trust's method of placing commercial paper with third parties violates certain
provisions of the Glass-Steagall Act—left undecided by a recent decision of the Supreme Court.
The Board's letter asked Bankers Trust to
provide information concerning its methods of
placing commercial paper with third parties.
The Board established the following schedule
for final resolution of the issue:
• Bankers Trust should, within 45 days of the
date of the Board's letter, provide the Board with
a description of its current, or planned, commercial placement activities and legal arguments
justifying them.
• The Board will accept comment from interested parties on the response by Bankers Trust
for 45 days thereafter.
• Within 30 days following the end of the
comment period, the Board's staff will present
the matter to the Board for final decision.
EXTENSION
OF REGISTRATION
FOR CERTAIN BANK HOLDING
PERIOD
COMPANIES
The Federal Reserve Board announced that it
has extended the date for registration by companies that became bank holding companies as a
result of the definition of the term "bank" in the
Board's revisions to Regulation Y, which became effective on February 6, 1984. The extension will be effective until legal issues regarding
the "bank" definition are resolved by the Congress or the courts.
Announcements
The Board similarly extended the grace period
for compliance with the Bank Holding Company
Act that it granted upon request of certain companies that acquired banks before December 10,
1982.
The Board had previously extended the registration date until December 31, 1984.
PROPOSED
ACTION
The Federal Reserve Board requested public
comment through January 18, 1985, on an application by J.P. Morgan & Co., a bank holding
company in New York, to engage through a
subsidiary in the execution and clearance of
futures contracts and options on futures contracts on stock indexes.
ERRATUM
The last sentence of the first paragraph in the
second column on page 19 of the January 1985
issue of the B U L L E T I N should read as follows:
Of course, even if it had been, and if that curve implied
a sufficiently large interest elasticity of money demand, it would still be the case that rapid money
growth would have needed to be encouraged.
PUBLICATION
OF REVISED EDITION
PURPOSES A N D FUNCTIONS
OF
A completely rewritten edition of The Federal
Reserve System—Purposes
and Functions is
now available. This edition, the seventh, presents a concise account of the Federal Reserve's
responsibilities and operating procedures in the
areas of monetary policy, international finance,
banking supervision and regulation, protection of
consumers in their financial transactions, and the
provision of payments and other services by the
Federal Reserve Banks.
Copies of the book may be obtained, free of
charge, from Publications Services, Board of
Governors of the Federal Reserve System,
Washington, D.C. 20551.
CHANGES
IN BOARD
91
STAFF
The Board of Governors has announced the
following changes in its official staff:
Samuel Pizer, Staff Adviser in the Division of
International Finance, resigned, effective November 30, 1984. Frank O'Brien, Jr., Deputy
Assistant to the Board in the Office of Board
Members, retired, effective December 31, 1984.
Nancy P. Jacklin, Assistant General Counsel in
the Legal Division, resigned, effective January 4,
1985. Gilbert T. Schwartz, Associate General
Counsel in the Legal Division, resigned, effective
January 15, 1985.
SYSTEM
MEMBERSHIP
ADMISSION
OF STATE
BANKS
The following banks were admitted to membership in the Federal Reserve System during the
period December 1, 1984, through January 1,
1985:
California
Carlsbad
Oakland
Colorado
Aurora
Florida
Miami
Vero Beach
Kansas
Selden
Nebraska
Uehling
Texas
Fort Worth
Capital Bank of Carlsbad
Civic Bank of Commerce
United Bank of Aurora-South
Mega Bank
First American Bank
of Indian River County
Selden State Bank
Uehling State Bank
Bank of Commerce
92
Record of Policy Actions of the
Federal Open Market Committee
MEETING
HELD
1. Domestic
ON NOVEMBER
Policy
7,
1984
Directive
The information reviewed at this meeting indicated a mixed pattern of developments but on
balance suggested that economic activity was
continuing to expand, though at a considerably
more moderate pace than earlier in the year.
Final demands appeared to have picked up a bit
in early autumn after a lull during the summer.
However, domestic production was apparently
being damped by strong and growing competition
from imported products and by partly related
efforts in a few sectors to reduce inventories.
Thus far in 1984, broad measures of prices generally have continued to rise at rates close to the
reduced rates recorded in 1983.
Nonfarm payroll employment rose 440,000 in
October, following average monthly gains of
about 200,000 in the third quarter. The October
advance was most pronounced in the service and
retail trade industries, but employment in manufacturing also increased somewhat after falling
sharply in September. The civilian unemployment rate was unchanged in October at 7.4
percent, as an increase in the civilian labor force
offset a substantial rise in employment.
Industrial production fell 0.6 percent in September, after edging up 0.1 percent in August.
About half of the September decline was due to a
decrease in the production of motor vehicles,
which had been affected by a short strike and by
continuing problems related to the availability of
quality parts. Production of nondurable goods
and construction supplies also fell, while output
of equipment for business and defense continued
to advance. Available information suggested that
industrial production increased little in October.
Retail sales rebounded in September, rising an
estimated 1.6 percent after two consecutive
monthly declines. Gains were recorded at nearly
all types of retail outlets and included sharp
increases at stores selling largely discretionary
items such as apparel and general merchandise.
Sales of new domestic automobiles, curtailed by
a variety of supply factors, were at an annual rate
of about 73/4 million units in September and fell in
October to a rate of around IVA million units.
Housing starts rose substantially in September
after dropping in both July and August. The
advance was broadly based: starts of singlefamily and multifamily units rose by similar
margins, and all major geographic regions of the
country recorded increases. Sales of new homes
rose nearly 22 percent in September, more than
offsetting the declines of the previous two
months.
Business fixed investment picked up in September, with shipments of equipment and expenditures on nonresidential construction both
expanding appreciably. Investment spending
slowed considerably during the third quarter as a
whole, however, following exceptional increases
over the preceding year. Recent indicators of
outlays and spending plans suggested a continuation of the slower expansion in business fixed
investment, and investment in inventories,
which had risen relative to sales in recent
months, also appeared to be slowing.
The producer price index for finished goods
fell 0.2 percent in September and had remained
essentially unchanged over the past two quarters. The consumer price index rose 0.4 percent
in September, continuing its pattern of increasing
in recent months at an annual rate of 4 to 5
percent. Various measures of wage inflation,
including the index of average hourly earnings
and the employment cost index, have continued
to rise more slowly in 1984 than in 1983.
The foreign exchange value of the dollar fluctuated widely over the intermeeting period, ris-
93
ing to a new high in mid-October, but subsequently declining to a level about 23A percent
below that prevailing at the time of the previous
meeting. Factors contributing to the dollar's recent decline included an apparent perception
among market participants of slower economic
activity in the United States than previously
anticipated and a judgment that U.S. interest
rates might decline somewhat further. The U.S.
foreign trade deficit in the third quarter was
substantially above the rate in the first half of the
year, as a sharp rise in non-oil imports exceeded
further growth in exports.
At its meeting on October 2, 1984, the Committee had adopted a directive that called for
maintaining the lesser degree of reserve restraint
that had been sought in the weeks just before that
meeting. The members expected that such an
approach to policy implementation would be
consistent with growth of Ml, M2, and M3 at
annual rates of about 6, IVr, and 9 percent
respectively for the period from September to
December. The Committee agreed that somewhat lesser restraint would be acceptable in the
event of significantly slower growth in the monetary aggregates, evaluated in relation to the
strength of the business expansion and inflationary pressures, conditions in domestic and international financial markets, and the rate of credit
growth. Conversely, greater restraint might be
acceptable in the event of substantially more
rapid monetary growth and indications of significant strengthening of economic activity and inflationary pressures. The intermeeting range for
the federal funds rate was left unchanged at 8 to
12 percent.
Growth in the monetary aggregates strengthened in September from the sluggish pace in
August. But data available for October indicated
that Ml declined during the month; as a result,
Ml was running well below the Committee's
expectations for growth in the fourth quarter.
Expansion in M2 was also below the Committee's expectations, although to a much lesser
extent, while growth in M3 appeared to be at a
pace somewhat above the Committee's expectations.
Expansion of total domestic nonfinancial debt
moderated to an estimated annual rate of about
11 VA percent in September from an average pace
of about 13 percent in the preceding two months.
Government borrowing remained large, while
private credit growth, though relatively strong,
moderated. At commercial banks, credit expansion slowed as the pace of consumer lending
slackened and growth in business borrowing
eased. Thus far in 1984, total domestic nonfinancial debt appeared to be growing at a rate appreciably above the Committee's monitoring range
of 8 to 11 percent for the year.
Over much of the intermeeting interval borrowing by banks at the discount window averaged slightly below levels in the weeks preceding
the meeting. However, despite indications of
reduced pressure on reserve positions and narrowing spreads between the discount rate and
short-term market rates, borrowing at times was
sizable. Banks apparently became more willing
borrowers at the window following the more
cautious approach to reserve management, particularly on the part of large banks, that had
developed in late spring. Toward the end of the
intermeeting interval, open market operations
were conducted to further reduce pressures to
borrow in recognition of the extended weakness
of Ml, and to a degree M2, against the background of incoming economic and financial indicators suggesting, on balance, a marked slowing
in the pace of economic expansion. As a result of
these developments, together with market expectations of monetary easing and a drop in other
short-term rates, the federal funds rate moved
down irregularly from around 11 percent just
before the October meeting to around 10 percent
most recently, with trading on several days in the
area of 9'/2 percent or below. At the same time,
other short-term rates fell about VA to V/2 percentage points over the period. Long-term rates
on taxable securities generally declined about VA
percentage point, responding in part to expectations of an improved outlook for inflation as oil
prices weakened as well as to the signs of moderating economic expansion. Most major banks
reduced their "prime" lending rate in several
steps from 123/4 percent to 12 percent, and a few
banks lowered their rate to l l 3 / 4 percent.
The staff projections presented at this meeting
suggested that real GNP would grow somewhat
more rapidly in the fourth quarter than in the
third and that the expansion would continue at a
94
Federal Reserve Bulletin • February 1985
moderate pace in 1985. Personal consumption
expenditures were expected to pick up in the
near term, and growth over the coming year was
also expected to be sustained by continued expansion in business fixed investment, though at a
much slower pace than in recent quarters, and by
defense spending. The unemployment rate was
projected to decline somewhat further over the
period, and the rate of price increase was expected to rise a little from its recent pace if the dollar
depreciates significantly on exchange markets
following its strong rise during the past year.
In the Committee's discussion of the economic
situation and outlook, members commented that
a mixed pattern of developments had fostered
increased uncertainty about the prospects for
economic activity. While most agreed that the
staff projection of moderate growth in real GNP
was a reasonable expectation, much of the discussion focused on the risks of an appreciable
deviation from the projection under prevailing
circumstances. A few members believed that the
chances of a deviation were tilted in the direction
of somewhat faster expansion than the staff was
projecting, but others expressed concern that the
rate of growth might remain quite sluggish in the
near term with some possibility of a rise in the
rate of unemployment.
The outlook for consumer expenditures was
cited as a key area of uncertainty. Several members felt that evidence of general improvement
was still lacking after the summer slowdown. It
was noted, however, that a number of retailers
expected sales to improve in conjunction with
the forthcoming holiday season. A failure of
consumer spending to revive in line with expectations would have adverse implications for economic growth beyond the fourth quarter, as it
would reinforce a recent tendency by businesses
to curb their accumulation of inventories or
possibly induce them to attempt to reduce previously acceptable inventory levels.
Members who were relatively optimistic about
the prospects for economic activity noted the
favorable impact that recent declines in interest
rates were likely to have on interest-sensitive
sectors of the economy such as housing. They
also noted that the basic forces that had given
impetus to the expansion over the last several
quarters were still largely present. These includ-
ed rising consumer incomes, a high degree of
consumer confidence and relatively strong financial positions, a subdued rate of inflation, a
favorable outlook for investment in plant and
equipment, and a large federal deficit that, at
least in the short run, provided a strong stimulus
to the expansion. A number of members observed, however, that while underlying factors
favored sustained expansion, the timing of a
pickup in economic growth following the
"pause" experienced in recent months remained
uncertain and growth might well remain relatively sluggish in the current quarter. Moreover,
even a substantial increase in retail sales over the
period ahead might not contribute to significant
short-run improvement in domestic production
to the extent that inventories were drawn down
or that a rising share of sales was accounted for
by imported goods. However, a strong rise in
retail sales that tended to deplete inventories
would have a favorable effect on production in
1985.
Members who were somewhat less optimistic
about the economic outlook noted that the surge
in imports was having a strong impact on a
number of important domestic industries, both in
terms of inhibiting their sales and curbing their
investment plans. The current value of the dollar
together with relatively weak economic growth
in foreign countries were also inhibiting demands
for U.S. exports. Moreover, some concern was
expressed that rising consumer debt burdens
might tend increasingly to curtail consumer
spending.
Several members commented that the outlook
for inflation remained relatively favorable. While
inflationary expectations appeared to have subsided further in recent months, the need to be
alert to inflationary potential remained. It was
noted, for instance, that a sizable decline in the
foreign exchange value of the dollar, if it were to
occur, would in time exert upward pressure on
domestic prices.
At its meeting in July, the Committee had
reviewed and reaffirmed the basic policy objectives that it had established in January for growth
of the monetary and credit aggregates in 1984 and
had set tentative objectives for expansion in
1985. For the period from the fourth quarter of
1983 to the fourth quarter of 1984, the policy
Record of Policy Actions of the Federal Open Market Committee
objectives included growth of 4 to 8 percent for
Ml and 6 to 9 percent for both M2 and M3.
Through October, Ml grew at a rate in the lower
half of the range for the year, M2 at a rate
somewhat below the midpoint of its range, and
M3 at a rate a bit above the upper limit of its
range. For 1985 the Committee had established
tentative ranges that included reductions of 1 and
V2 percentage point from the upper limits of the
1984 ranges for Ml and M2 respectively and no
change in the range for M3. For both years the
associated range for growth in total domestic
nonfinancial debt was set at 8 to 11 percent.
During the Committee's discussion of policy
implementation for the weeks immediately
ahead, a number of members expressed concern
about the persisting weakness in Ml, especially
in the context of the concurrent "pause" or
"lull" in the economic expansion, and they saw
a need for some easing of reserve conditions to
encourage a resumption in Ml growth. Other
members, while not necessarily disagreeing,
nonetheless noted that the recent expansion of
M2 had been much closer to the Committee's
expectations and that growth in M3 had been
somewhat faster. A few members cautioned
against putting too much emphasis on Ml in light
of its typically volatile behavior, the difficulties
of achieving accurate seasonal adjustments, and
the often unpredictable relationship of Ml to
aggregate measures of economic performance.
Most members felt that the potential for a
sharp upward surge in business activity had
diminished appreciably for the time being and
with it the possible need for a near-term reversal
of easing steps already taken. On balance, nearly
all of the members favored further easing from
the reduced degree of reserve restraint sought
recently. While preferences with regard to the
extent of such easing differed somewhat, a majority urged that the lesser restraint be implemented in limited steps, pending an evaluation of
its impact on financial markets and of incoming
information on the economy and the monetary
aggregates. A number of members, who suggested slightly more aggressive steps, stressed that
the risks of stimulating an intensification of inflationary pressures were relatively small under
forseeable circumstances and that, on balance,
more weight needed to be given to the risks of
95
inadequate monetary and economic growth.
With regard to the latter, some members noted
that the economy appeared to have the capacity
for somewhat faster expansion than was generally expected without generating significantly
greater inflationary pressures.
A differing view placed more emphasis on
prospects for some strengthening in economic
activity, partly in light of the sizable declines in
interest rates that had already occurred. In this
view, little or no easing of reserve conditions
would be desirable at this time, although the
Committee needed to remain sensitive to possible indications of further weakness in monetary
growth and in economic performance. It was
pointed out that any very substantial decline of
interest rates over the near term might have to be
reversed later, with potentially unsettling consequences for financial markets and institutions, in
order to restrain a resurgence of monetary
growth and inflationary pressures.
In the course of the Committee's discussion,
the members generally agreed that under prevailing economic and financial conditions, policy
implementation should be particularly alert to
the possible need for adjustment toward lesser
restraint. It was felt that any such adjustment
should be made promptly, although not automatically, depending on the behavior of the monetary aggregates and continuing indications of
relatively sluggish economic activity. In this
view, policy implementation should be relatively
tolerant, for a time, of a substantial rebound in
monetary growth, given the unexpected weakness of Ml in October. Any adjustment of operations in a tightening direction should also depend
upon clear evidence of substantial strengthening
in economic activity.
Members noted that, along with other interest
rates, the federal funds rate had declined appreciably during recent weeks. Accordingly, most of
the members favored a reduction in the intermeeting range of the federal funds rate from the
current 8 to 12 percent that had been set initially
at the July meeting, thus technically providing a
more symmetrical range around recent levels.
The members regard the federal funds range as a
mechanism for initiating Committee consultation
when its boundaries are persistently exceeded.
At the conclusion of the Committee's discus-
96
Federal Reserve Bulletin • February 1985
sion, all but one member indicated that they
favored or could accept a directive that called for
a somewhat reduced degree of restraint on reserve positions. The members expected such an
approach to policy implementation to continue to
be consistent with growth of M2 and M3 at
annual rates of about IV2 and 9 percent respectively as established at the early October meeting
for the period from September to December.
Given the appreciable decline in Ml during October, its growth over the three-month period was
now expected to be at an annual rate of around 3
percent, down from the 6 percent rate anticipated at the October meeting. The members recognized the volatility of this monetary measure and
indicated that more rapid growth would be acceptable for the quarter. Lesser restraint on
reserve conditions would be sought if the monetary aggregates grew significantly below expectations, evaluated in the context of the strength of
the business expansion and inflationary pressures, conditions in domestic and international
financial markets, and the rate of growth in
domestic nonfinancial debt. Conversely, greater
restraint might be acceptable in the event of
substantially more rapid growth in the monetary
aggregates than was currently expected, provided such growth v/as associated with evidence
that economic activity and inflationary pressures
were strengthening significantly. It was agreed
that the intermeeting range for the federal funds
rate should be reduced by one percentage point
to 7 to 11 percent.
At the conclusion of the meeting, the following
domestic policy directive was issued to the Federal Reserve Bank of New York:
The information reviewed at this meeting indicates a
mixed pattern of developments but on balance suggests that economic activity is continuing to expand,
though at a considerably more moderate pace than
earlier in the year. Nonfarm payroll employment rose
substantially outside of manufacturing in October,
following a moderate increase in September, and the
civilian unemployment rate was unchanged at 7.4
percent. Industrial production fell in September, partly because of strikes, and available information suggests little increase in October. Retail sales and housing starts rebounded in September after two months of
decline. Information on outlays and spending plans
suggests slower expansion in business fixed investment, following exceptionally rapid growth earlier,
and inventory investment, having risen relative to
sales in recent months, also appears to be slowing.
Since the beginning of the year, broad measures of
prices generally have continued to rise at rates close
to, or somewhat above, those recorded in 1983, and
the index of average hourly earnings has risen somewhat more slowly.
Growth of the monetary aggregates strengthened in
September, but data available for October indicated
that M l declined during the month, growth of M2
slowed somewhat, and expansion of M3 picked up
further. From the fourth quarter of 1983 through
October, M l grew at a rate in the lower half of the
Committee's range for 1984, M2 at a rate somewhat
below the midpoint of its longer-run range, and M3 at a
rate a bit above the upper limit of its range. Growth in
total domestic nonfinancial debt appears to be continuing above the Committee's monitoring range for the
year, reflecting large government borrowing; private
credit growth, though relatively strong, has moderated
in recent months. Interest rates have fallen substantially further since the meeting of the Committee on
October 2.
Over the past month, the foreign exchange value of
the dollar against a trade-weighted average of major
foreign currencies has continued to fluctuate widely,
rising to a new high in mid-October but subsequently
declining to somewhat below its level at the time of the
previous meeting. The merchandise trade deficit in the
third quarter was substantially above the first-half rate
as a sharp rise in non-oil imports exceeded some
further growth in exports.
The Federal Open Market Committee seeks to foster monetary and financial conditions that will help to
reduce inflation further, promote growth in output on a
sustainable basis, and contribute to an improved pattern of international transactions. In furtherance of
these objectives the Committee agreed at the July
meeting to reaffirm the ranges for monetary growth
that it had established in January: 4 to 8 percent for M l
and 6 to 9 percent for both M2 and M3 for the period
from the fourth quarter of 1983 to the fourth quarter of
1984. The associated range for total domestic nonfinancial debt was also reaffirmed at 8 to 11 percent for
the year 1984. It was anticipated that M3 and nonfinancial debt might increase at rates somewhat above the
upper limits of their 1984 ranges, given developments
in the first half of the year, but the Committee felt that
higher target ranges would provide inappropriate
benchmarks for evaluating longer-term trends in M3
and credit growth. For 1985 the Committee agreed on
tentative ranges of monetary growth, measured from
the fourth quarter of 1984 to the fourth quarter of 1985,
of 4 to 7 percent for M l , 6 to 8Vt percent for M2, and 6
to 9 percent for M3. The associated range for nonfinancial debt was set at 8 to 11 percent.
The Committee understood that policy implementation would require continuing appraisal of the relationships not only among the various measures of money
Record of Policy Actions of the Federal Open Market Committee
and credit but also between those aggregates and
nominal GNP, including evaluations of conditions in
domestic credit and foreign exchange markets.
In the implementation of policy in the short run, the
Committee seeks to reduce somewhat existing pressures on reserve positions. This action is expected to
be consistent with growth of M2 and M3 at annual
rates of around IV2 and 9 percent during the period
from September to December. Ml is expected to grow
over the period at an annual rate of around 3 percent,
less than anticipated earlier in view of the decline in
October. In light of that decline, more rapid growth of
Ml would be acceptable. Lesser restraint on reserve
positions would be sought in the event of significantly
slower growth in the monetary aggregates, evaluated
in relation to the strength of the business expansion
and inflationary pressures, domestic and international
financial market conditions, and the rate of credit
growth. Conversely, greater restraint might be acceptable in the event of substantially more rapid monetary
growth and indications of significant strengthening of
economic activity and inflationary pressures. The
Chairman may call for Committee consultation if it
appears to the Manager for Domestic Operations that
pursuit of the monetary objectives and related reserve
paths during the period before the next meeting is
likely to be associated with a federal funds rate persistently outside a range of 7 to 11 percent.
Votes for this action: Messrs. Volcker, Solomon,
Boehne, Boykin, Corrigan, Mrs. Horn, Messrs.
Martin, Partee, Rice, Ms. Seger, and Mr. Wallich.
Vote against this action: Mr. Gramley.
Mr. Gramley dissented from this action because he preferred a directive that called for
maintaining approximately the existing degree of
reserve restraint. Despite the pause in the current expansion, underlying forces in the economy, together with the decline in interest rates
that had already occurred, were likely to produce
a resumption of economic expansion in the reasonably near future. In those circumstances, he
was concerned that further easing of reserve
positions might lead to a significant decline in
interest rates that would subsequently have to be
reversed as economic activity and money growth
picked up again.
2. Authorization
Operations
for Domestic
Open
Market
During the intermeeting period, the Committee
approved temporary increases in the $4 billion
97
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. The first increase from $4
billion to $6 billion was elfective on November
21, 1984, and the second from $6 billion to $8
billion on December 5, 1984. Both increases
applied to the period ending with the close of
business on December 18, 1984. They were approved on the recommendation of the Manager
for Domestic Open Market Operations. During
the first part of the intermeeting period, substantial net purchases of securities were undertaken
to provide reserves in association with seasonal
increases in required reserves and in currency
in circulation. The need to provide reserves
through open market operations had been augmented this year by some reduction in borrowings on an extended basis at the Federal Reserve
Banks. By November 21, immediately contemplated purchases would have nearly exhausted
the $4 billion leeway in the authorization and the
Manager believed that additional purchases were
likely to be required before the next Committee
meeting. Subsequently, in early December the
Manager advised that a greater need to provide
reserves than previously expected had arisen
from a combination of factors, all working in the
same direction, that included further declines in
extended credit at the discount window, anticipated changes in vault cash, currency, and required reserves, and an increased pool of overnight investment funds of foreign official
accounts.
Votes for the action effective November 21, 1984:
Messrs. Volcker, Solomon, Boehne, Boykin, Corrigan, Gramley, Mrs. Horn, Messrs. Martin, Partee, Rice, Ms. Seger, and Mr. Wallich. Votes
against this action: None.
Votes for the action effective December 5, 1984:
Messrs. Volcker, Solomon, Boehne, Boykin, Corrigan, Gramley, Martin, Partee, Rice, Ms. Seger,
Messrs. Wallich and Keehn. Votes against this
action: None. (Mr. Keehn voted as alternate for
Mrs. Horn.)
99
Legal Developments
AMENDMENTS
TO REGULATION
A
The Board of Governors has amended its Regulation
A, " E x t e n s i o n s of Credit by Federal Reserve B a n k s , "
for the purpose of reducing discount rates. The action
is designed to bring the discout rate into more appropriate alignment with short-term market interest rates.
It was taken in the general context of the moderation
of growth in economic activity since mid-year, continued relative stability or declines in sensitive commodity prices, and strength of the dollar internationally.
M l and M2 have remained within desired longer run
ranges, but growth in M l has on average been relatively sluggish in recent months.
Effective on the dates listed below, Part 201 is
amended to read as follows:
Federal
Reserve Bank
Rate
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
K a n s a s City
Dallas
San F r a n c i s c o
8
8
8
8
8
8
8
8
8
8
8
8
Effective
December
December
December
December
December
December
December
December
December
December
December
December
24,
24,
24,
24,
24,
24,
24,
24,
24,
24,
24,
24,
1984
1984
1984
1984
1984
1984
1984
1984
1984
1984
1984
1984
(b) The rates for other extended credit provided to
depository institutions under sustained liquidity pressures or where there are exceptional circumstances or
practices involving a particular institution under
§ 201.3(b)(2) of Regulation A are:
Part 201—Extensions of Credit by Federal
Reserve Banks
1. Section 201.51 is revised to read as follows:
Section 201.51—Short Term Adjustment Credit
for Depository Institutions
The rates for short term adjustment credit provided to
depository institutions under § 201.3(a) of Regulation
A are:
Federal
R e s e r v e Bank
Rate
Boston
N e w York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. L o u i s
Minneapolis
K a n s a s City
Dallas
San Francisco
8
8
8
8
8
8
8
8
8
8
8
8
Effective
December
December
December
December
December
December
December
December
December
December
December
December
24,
24,
24,
24,
24,
24,
24,
24,
24,
24,
24,
24,
1984
1984
1984
1984
1984
1984
1984
1984
1984
1984
1984
1984
2. Section 201.52 is revised to read as follows:
Section 201.52—Extended Credit to Depository
Institutions
(a) The rates for seasonal credit extended to depository institutions under § 201.3(b)(1) of Regulation A
are:
Federal
Reserve Bank
Rate
Boston
N e w York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
K a n s a s City
Dallas
San F r a n c i s c o
8
8
8
8
8
8
8
8
8
8
8
8
Effective
December
December
December
December
December
December
December
December
December
December
December
December
24,
24,
24,
24,
24,
24,
24,
24,
24,
24,
24,
24,
1984
1984
1984
1984
1984
1984
1984
1984
1984
1984
J 984
1984
NOTE—These rates apply f o r the first 60 d a y s of borrowing. A 1
percent surcharge applies f o r b o r r o w i n g during the next 90 d a y s , and a
2 percent surcharge applies f o r b o r r o w i n g t h e r e a f t e r . W h e r e credit
provided to a particular d e p o s i t o r y institution is anticipated to be
outstanding f o r an unusually prolonged period, the time period in
which each rate u n d e r the s t r u c t u r e is applied m a y be s h o r t e n e d , and
the rate m a y be established on a m o r e flexible basis, taking into
account rates on m a r k e t s o u r c e s of f u n d s .
AMENDMENTS TO RULES
REGARDING
DELEGATION OF AUTHORITY
The Board of Governors is amending Part 265, its
Rules Regarding Delegation of Authority to authorize
Reserve Banks to approve applications under the
Bank Service Corporation Act ( " B S C
Act")
(12 U . S . C . § 1861 et seq.). The Board is amending its
Rules to allow Reserve Banks to approve BSC Act
applications generally under the same terms and conditions utilized by Reserve Banks in approving appli-
100
Federal Reserve Bulletin • February 1985
cations under section 4(c)(8) of the Bank Holding
Company Act ( " B H C A c t " ) (12 U . S . C . § 1843(c)(8)).
Effective on December 14, 1984 for all pending and
all future applications, the Board amends 12 C . F . R .
Part 265, its Rules Regarding Delegation of Authority,
by revising paragraphs 265.2(a)(2), the introductory
text of 265.2(f)(22), and 265.2(f)(22)(vi)(A) to read as
follows:
Section 265.2—Specific Functions Delegated to
Board Employees and to Federal Reserve
Banks
(a)***
(2) Under the provisions of sections 18(c) and
18(c)(4) of the Federal Deposit Insurance Act
(12 U.S.C. 1828(c) and 1828(c)(4)), sections 3(a),
4(c)(8) and 4(c)(14) of the Bank Holding Company
Act (12 U . S . C . 1842(a), 1843(c)(8) and (14)), sections 5(a), 5(b) and 7(d) of the Bank Service Corporation Act (12 U . S . C . 1865(a), 1865(b) and 1867(d)),
the Change in Bank Control Act (12 U . S . C . 18170))
and section 25 and 25(a) of the Federal Reserve Act
(12
U . S . C . 601-604a and 611 et seq.),
and
§§ 225.14, 225.23, and 225.41-43 of Regulation Y
(12 C . F . R . 225.14, 225.23, and 225.41-43), sections
211.3(a), 211.4(c), 211.5(c) and 211.34 of Regulation
K (12 C . F . R . 211.3(a), 211.4(c), 211.5(c) and
211.34), to furnish reports on competitive factors
involved in a bank merger to the Comptroller of the
Currency and the Federal Deposit Insurance Corporation and to take actions the Reserve Bank could
take except for the fact that the Reserve Bank may
not act because a director or senior officer of any
holding company, bank, or company involved in the
transaction is a director of a Federal Reserve Bank
or branch.
(f)***
(22) Under the provisions of section 18(c) of the
Federal Deposit Insurance Act (12 U . S . C . 1828(c)),
sections 3(a) and 4(c)(8) of the Bank Holding Company Act (12 U.S.C. 1842(a) and 1843(c)(8)), sections 5(a), 5(b), and 7(d) of the Bank Service Corporation Act (12 U.S.C. 1865(a), 1865(b) and 1867(d)),
and §§ 225.14 and 225.23 of Regulation Y (12 C . F . R .
225.14 and 225.23), to approve applications requiring prior approval of the Board, and under the
provisions of section 18(c)(4) of the Federal Deposit
Insurance Act (12 U . S . C . 1828(c)(4)), to furnish to
the Comptroller of the Currency and the Federal
Deposit Insurance Corporation reports on competitive factors involved in a bank merger required to be
approved by one of those agencies, unless one or
more of the following conditions is present:
(vi) With respect to nonbank acquisitions:
(A) The nonbanking activities involved do not
clearly fall within activities that the Board has
designated as permissible for bank holding companies under § 225.25(b) of Regulation Y; or
BANK HOLDING COMPANY, BANK MERGER, AND
BANK SERVICE CORPORATION
ORDERS
ISSUED
BY THE BOARD OF GOVERNORS
Orders Issued under Section 3 of Bank Holding
Company Act
The Central Bancorporation, Inc.
Cincinnati, Ohio
Order Approving
Companies
the Merger of Bank
Holding
The Central Bancorporation, Inc., Cincinnati, Ohio, a
bank holding company within the meaning of the Bank
Holding Company Act ( " A c t " ) ( 1 2 U . S . C . § 1841
et seq.), has applied for the B o a r d ' s approval under
section 3(a)(5) of the Act (12 U . S . C . § 1842(a)(5)) to
merge with United Midwest Bancshares, Inc., Cincinnati, Ohio, and thereby acquire Southern Ohio Bank,
Cincinnati, Ohio ( " B a n k " ) .
Notice of the application, affording an opportunity
for interested persons to submit comments, has been
given in accordance with section 3(b) of the Act. The
time for filing c o m m e n t s 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, the eighth largest banking organization in
Ohio, controls 6 banks with total deposits of approximately $2.1 billion, representing approximately 4 percent of total deposits in commercial banks in the
state. 1 Bank is the 19th largest commercial banking
organization in the state with total deposits of $203
million, representing approximately 0.5 percent of
total deposits in commercial banks in the state. After
consummation of the proposal, Applicant's share of
total deposits in commercial banks in the state would
increase to 4.5 percent, and Applicant would become
the seventh largest commercial banking organization
1. Statewide banking data are as of June 30, 1983. Market data are
as of June 30, 1983.
Legal Developments
in the state. Accordingly, consummation of this proposal would not result in a significant increase in the
concentration of banking resources in Ohio.
Applicant and Bank both operate in the Cincinnati
banking market. 2 Applicant is the third largest of 39
commercial banking organizations in the market and
controls $975.8 million in deposits, representing 17.2
percent of total deposits in commercial banks in the
market. Bank is the fifth largest commercial banking
organization in the market and controls 4.4 percent of
total deposits in commercial banks in the market.
U p o n consummation of this transaction, Applicant
would b e c o m e the largest commercial banking organization in the market and would control 21.6 percent of
the total deposits in commercial banks in the market.
In the Cincinnati banking market, the four largest
commercial banking organizations control 54.6 percent of the deposits in commercial banks in the market. The H e r f i n d a h l - H i r s c h m a n Index ( " H H I " ) is
1202 and would increase by 151 points to 1353 upon
consummation of this proposal. 3
Although consummation of the proposal would eliminate some existing competition between Applicant
and Bank in the Cincinnati banking market, numerous
other commercial banking organizations would remain
as competitors after consummation of the proposal. In
addition, there are 74 thrift institutions that control
approximately 47 percent of the m a r k e t ' s total deposits. 4 Thrift institutions already exert a considerable
competitive influence in the market as providers of
N O W accounts and consumer loans. In addition, some
of the thrift institutions are engaged in the business of
making commercial loans and are providing an alternative for such services in the Cincinnati market. Based
upon the above considerations, the consummation of
the proposal is not likely to substantially lessen competition in the Cincinnati banking market. 5
2. The Cincinnati banking market is approximated by Hamilton and
Clermont Counties and portions of Warren and Butler Counties, all in
Ohio; portions of Boone, Campbell, and Kenton Counties, all in
Kentucky; and Dearborn County, Indiana.
3. Under the revised Department of Justice Merger Guidelines 49
Federal Register 26,823 (June 29, 1984), where a market has a postH H I of between 1000 and 1800 the Department is likely to challenge a
transaction that produces an increase in the H H I of more than 100
points unless other facts of record indicate that the merger is not likely
to substantially lessen competition.
4. The Board has previously indicated that thrift institutions have
become, or have the potential to become, major competitors of
commercial banks. National City Corporation, 70 FEDERAL RESERVE
B U L L E T I N 7 4 3 ( 1 9 8 4 ) ; NCNB
Bancorporation,
7 0 FEDERAL RESERVE
BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL
RESERVE BULLETIN 802 (1983); First Tennessee National
Corporation,
6 9 FEDERAL RESERVE BULLETIN 298 (1983).
5. If 25 percent of deposits held by thrift institutions in the
Cincinnati banking market were included in the calculation of market
concentration, the share of total deposits held by the four largest
organizations in the market would be 54.3 percent. Applicant would
control 14.1 percent of the m a r k e t ' s deposits and Bank would control
101
The financial and managerial resources of Applicant
and its subsidiary banks are satisfactory. Applicant
will be able to provide Bank with needed financial and
managerial resources after consummation of the proposal. Applicant also will provide Bank with a cash
management program, a leasing program, personal
trust services, and access to a regional and national
ATM system. Thus, considerations relating to the
convenience and needs of the communities to be
served are also consistent with approval. Based on the
foregoing and other facts of record, the Board has
determined that consummation of the proposed transaction 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 merger
shall not be c o n s u m m a t e d 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
Cleveland pursuant to delegated authority.
By order of the Board of Governors, effective
December 21, 1984.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Rice, Gramley, and Seger.
WILLIAM W .
Secretary
[SEALI
of the
WILES
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 ( " A c t " ) , has applied for the B o a r d ' s approval
under section 3(a)(3) of the Act (12 U . S . C .
§ 1842(a)(3)) to acquire, through its subsidiary Citicorp
Holdings, Inc., Wilmington, Delaware ( " C H I " ) , all of
the voting shares of Citibank (Nevada), L a s Vegas,
N e v a d a ( " B a n k " ) , a proposed new bank.
Notice of the application, affording opportunity for
interested persons to submit c o m m e n t s and views, has
been given in accordance with section 3(b) of the Act.
The time for filing c o m m e n t s 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)).
3.6 percent of the m a r k e t ' s deposits. The H H I would increase by 102
points to 927.
102
Federal Reserve Bulletin • February 1985
Citicorp, with total consolidated assets of $145
billion, is the largest banking organization in the
nation. 1 It presently operates six banking subsidiaries.
Its lead bank, Citibank, N.A., New York, New York,
accounts for approximately 79 percent of its consolidated assets and is a full-service commercial bank.
Citibank (New York State), N . A . , Buffalo, New York,
is engaged principally in retail banking through
branches north of the New York City metropolitan
area, in New York State. Citibank (South Dakota),
N.A., Sioux Falls, South Dakota, was established in
1981 principally to conduct nationwide consumer credit card activities transferred from Citibank (New York
State), N.A. Citibank (Maryland), N.A., Towson,
Maryland, offers various consumer credit products,
commercial loans consisting primarily of factoring,
and a variety of deposit products. Citibank (Delaware), Wilmington, Delaware, engages in wholesale
banking nationally and internationally. Citibank
(Maine), N.A., Portland, Maine, opened as a retail
commercial bank on September 10, 1984. Citicorp also
engages, directly and through subsidiaries, in a variety
of nonbanking activities.
CHI was established by Citicorp to hold the shares
of Citicorp's subsidiary banks domiciled outside of
New York. CHI became a bank holding company on
May 31, 1984 and currently holds shares of Citibank
(South Dakota), Citibank (Maryland), and Citibank
(Delaware). CHI has pending an application to acquire
Citibank (Maine).
Bank is a newly established bank organized by
Citicorp to engage principally in the activity of offering
bank credit cards in 14 western states. 2 Bank will also
engage in commercial lending, principally as a participant in loans made by other financial institutions.
Bank's lending activities will be funded primarily by
certificates of deposit and money market deposits
offered to customers in its service area, although Bank
will accept some demand deposits as well.
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 operations of the bank holding
company's banking subsidiaries are principally conducted, unless the acquisition is "specifically authorized by the statute laws of the state in which such
bank is located, by language to that effect and not
merely by implication." Effective March 30, 1984,
Nevada amended its banking laws to permit an out-of-
1. Banking data are as of September 30, 1984.
2. Bank's intended service area includes the states of Nevada,
Washington, Oregon, California, Montana, Idaho. Wyoming, Utah.
Colorado, Arizona, New Mexico, Nebraska, Alaska, and Hawaii.
Applicant has stated that it will transfer approximately $1.5 billion of
credit card receivables from Citibank (South Dakota) to Bank.
state bank holding company to acquire a single bank
located in Nevada if prior approval is received from
the Administrator of the Financial Institutions Division of the Nevada Department of Commerce ("Nevada Administrator") after the Administrator makes the
following determinations:
(1) the bank to be acquired will be operated in a
manner not likely to attract customers from the
general public in Nevada to the substantial detriment of financial institutions located in Nevada;
(2) the acquisition is fair;
(3) the acquisition is not contrary to the public
interest;
(4) the acquisition will not create in Nevada an
undue concentration of financial resources or a
substantial reduction of financial competition;
(5) the economic advantages of the acquisition to
Nevada, in terms of employment and capital investment, are adequate to permit approval. 3
The Nevada Administrator must also enter into an
agreement with the holding company setting forth the
necessary conditions of the approval. The Nevada
Administrator has approved the application of Citicorp
to acquire Bank and found that the acquisition meets
the statutory requirements for approval under Nevada
law. Citicorp has signed an agreement with the Nevada Administrator, as required by the Nevada statute.
Based on the above and other facts of record, the
Board has determined that the statute laws of Nevada
specifically authorize the acquisition of a bank chartered in Nevada by an out-of-state bank holding company in accordance with the requirements of section
3(d) of the Act and that the proposed acquisition
conforms to Nevada law.
The Nevada law is similar to South Dakota, Delaware, Virginia, and Maryland laws 4 under which the
Board has previously approved acquisitions of limited
purpose credit card banks by bank holding companies
based on a determination that these laws are not
unconstitutional. 5 Each of these laws requires that the
3. Ch. 2, Statutes of Nevada 1984 § 3(l)(a)-(e). If approved by the
administrator, the acquisition is subject to the conditions that the total
capital stock of the bank to be acquired must be at least $5,000,000,
the acquired bank may not hold a license pursuant to Nev. Rev. Stat.
§ 677 (Nevada Thrift Companies Act), and the acquired bank must not
solicit loans, deposits or other financial business from residents of
Nevada unless the solicitation is part of a general solicitation which is
also directed to residents of other states. The acquired bank may not
solicit commercial loans in Nevada, but it may make a loan to another
financial institution, or at the request of another financial institution
which will also lend money to the person who will receive the loan.
4. S.D. Codified Laws Ann. § 51-16-40 (1980); Del. Code Ann.,
title 5, § 803 (1981); Va. Code §§ 6.1-390 to 6.1-397 (1983); Md. Fin.
Inst. Code Ann. §§ 5-901 to 5-908 (1983).
5 . See,
J.P.
e.g.,
Morgan
Citicorp,
& Company,
6 7 F E D E R A L R E S E R V E B U L L E T I N 181 ( 1 9 8 1 ) ;
Inc.,
67 FEDERAL RESERVE BULLETIN 9 1 7
(1981); Citicorp, 68 FEDERAL RESERVE BULLETIN 499 (1982); Citicorp, 70 FEDERAL RESERVE BULLETIN 431 (1984); First
Kentucky
National
Corporation,
7 0 FEDERAL RESERVE BULLETIN 4 3 4 (1984).
Legal Developments
bank to be acquired be operated in a manner and at a
location not likely to attract customers f r o m the general public in the state to the substantial detriment of
financial institutions located in the state.
The Constitution does not permit states to regulate
commerce in a m a n n e r that imposes more than an
incidental burden on interstate commerce. 6 H o w e v e r ,
the power of Congress to regulate interstate c o m m e r c e
is plenary, and authorizes it to adopt legislation that
burdens interstate commerce. 7 Congress, in the Douglas A m e n d m e n t , has imposed a complete ban on
interstate acquisitions of banks by bank holding companies, with an exception that allows an individual
state to override the prohibition with respect to bank
holding c o m p a n y acquisition of banks in that state.
Accordingly, the Board has reasoned that as a result of
the Douglas A m e n d m e n t authority to lift the federally
imposed prohibition on interstate acquisitions, a state
law, such as the one adopted by N e v a d a , that partially
lifts the prohibition with respect to a specific range of
banking services is consistent with the Douglas
Amendment. 8 M o r e o v e r , such statutes do not raise the
serious constitutional questions under the C o m m e r c e
Clause that are posed when states discriminate against
other states based upon location of the out-of-state
bank holding c o m p a n y that have arisen with respect to
regional banking c o m p a c t s in which states allow only
bank holding companies in selected other states to
acquire banks within the host state to engage in the full
range of banking services. Accordingly, the Board
finds the N e v a d a law to be constitutional.
Because of the limitations imposed by N e v a d a law,
Bank is unlikely to be in extensive direct competition
with banks in the local market. Since Bank will
provide some banking services on a de novo basis,
however, consummation of the transaction will result
in some competitive benefits. The Board concludes
that the proposal will not have adverse effects on
competition in any relevant area and that the overall
competitive effects of the proposal are consistent with
approval.
The financial and managerial resources and future
prospects of Citicorp, C H I , and Bank are regarded as
satisfactory. With respect to the convenience and
needs of the community to be served, Bank will offer
consumer and commercial loans and a variety of
deposit products throughout 14 states. Thus, the
6. Hughes v. Oklahoma, 441 U . S . 322, 336 (1979); Pike v. Bruce
Church, Inc., 397 U . S . 137, 142 (1970).
7. Wickard v. Filburn, 317 U.S. I l l (1942); N.L.R.B.
v. Jones &
Laughlin Steel Corp., 301 U . S . 1 (1937); Gibbons v. Ogden, 9 Wheat 1
(1824).
8. The Board has previously stated that "[n]othing in the history of
the Douglas Amendment suggests that the states were to be permitted
only to choose between not allowing out-of-state bank holding companies to enter, and allowing completely free e n t r y . " Bank of New
England
Corp.,
70 FEDERAL RESERVE BULLETIN 374, 3 8 6 (1984).
103
Board finds that banking and convenience and needs
factors are consistent with approval of the application.
While this application is being approved, the Board
believes it appropriate to express its concern about the
proliferation of statutes of this type which permit the
entry of out-of-state bank holding companies in order
to shift j o b s and revenues f r o m other states, while
limiting the in-state activities of out-of-state owned
banks so as to avoid competition with in-state banking
organizations. T h e s e statutes do not appear to be
based on appropriate public policy considerations for
assuring a stable and sound banking system locally and
nationwide, and the end result of their adoption by
other states can only be a serious impairment of
banking standards and no net gains in j o b s or revenues
because of the proliferation.
Based on the foregoing and other considerations
reflected in the record, the Board has determined that
approval of the application under section 3(a)(3) is
consistent with the public interest and that the application should be and hereby is approved. The acquisition
of shares of Bank 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, and the bank to be acquired shall be
opened for business not later than six months after the
effective date of this Order, unless such period is
extended for good cause by the Board or the Federal
Reserve Bank of N e w York, under delegated authority.
By order of the Board of Governors, effective
D e c e m b e r 21, 1984.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Rice, Gramley, and Seger.
WILLIAM W .
Secretary
[SEAL]
WILES
of the Board
Midwest Bancshares, Inc.
Poplar Bluff, Missouri
Order Denying Acquisition
of Bank
Midwest Bancshares, Inc., Poplar Bluff, Missouri, a
bank holding c o m p a n y within the meaning of the Bank
Holding Company Act ( " A c t " ) , 12 U . S . C . § 1841
et seq., has applied for the B o a r d ' s prior approval
under section 3(a)(3) of the Act,
12 U . S . C .
§ 1842(a)(3), to acquire all of the voting shares of Bank
of Piedmont, Piedmont, Missouri.
Notice of the application, affording an opportunity
for interested persons to submit c o m m e n t s , has been
given in accordance with section 3(b) of the Act. The
time for filing c o m m e n t s has expired, and the Board
104
Federal Reserve Bulletin • February 1985
has considered the application and all c o m m e n t s received in light of the factors set forth in section 3(c) of
the Act, 12 U . S . C . § 1842(c).
Applicant's subsidiary b a n k , First State Bank of
Dexter ( " D e x t e r B a n k " ) , Dexter, Missouri, is one of
the smaller banks in Missouri. It controls total deposits of $22.9 million, which represents less than 0.1
percent of the deposits in commercial banks in the
state. 1 Bank of Piedmont also is one of the smaller
commercial b a n k s in Missouri. It controls total deposits of $20.9 million, which also represents less than 0.1
percent of the deposits in commercial banks in the
state. U p o n consummation of this transaction, Applicant would remain one of the smaller commercial
banking organizations in Missouri, and would control
approximately 0.1 percent of the deposits in the state.
Accordingly, the Board concludes that consummation
of this transaction would have no significant effect
upon the concentration of banking resources in
Missouri.
Dexter Bank and Bank of Piedmont do not compete
in the same market. In addition. Applicant's principals
are not affiliated with any other banking organization
in the relevant market. Consummation of the proposed
transaction would not result in any adverse effects
upon existing or potential competition. Accordingly,
the Board concludes that competitive considerations
are consistent with approval of this application.
One of Applicant's principals is also a principal of
four other Missouri bank holding companies. Where
principals of an applicant are engaged in operating a
chain of banking organizations, in addition to analyzing the proposal before it, the Board also considers the
entire chain and analyzes the financial and managerial
resources and future prospects of the chain in light of
the B o a r d ' s Capital A d e q u a c y Guidelines. 2
Dexter Bank, Bank of Piedmont, and two of the
banks in the chain have experienced a recent deterioration in performance. Applicant would incur a sizeable amount of debt to acquire the shares of Bank of
Piedmont, and would increase its debt burden f r o m 46
percent of equity to 182 percent. The Board has stated
on a number of occasions that a bank holding company
should serve as a source of strength to its banking
subsidiaries. In this regard, it has cautioned against the
assumption of substantial amounts of debt because of
concern that the holding company would no longer
have the financial flexibility to meet unexpected problems of its subsidiary b a n k s or would be forced to
place substantial d e m a n d s on its subsidiary banks to
meet its debt-servicing requirements.
In light of the recent p e r f o r m a n c e of Dexter Bank
and Bank of Piedmont, the Board is concerned that
Applicant's projections regarding debt servicing are
overly optimistic. On the basis of less optimistic
projections based on the recent record of performance
for Dexter Bank and Bank of Piedmont, it is the
B o a r d ' s judgment that Applicant would not have sufficient financial flexibility to service its debt or serve as
a source of strength to D e x t e r Bank or Bank of
Piedmont. Accordingly, the Board concludes that financial factors weigh against approval of this application.
Although Applicant's principal has recently implemented changes in the operating procedures for the
banks in the chain organization, including Dexter
Bank, and Bank of P i e d m o n t ' s management has instituted similar changes, these changes have been in
effect for only a brief period and their ultimate results
are uncertain. As a result, the Board is unable at this
time to conclude that managerial considerations are
sufficiently favorable to outweigh the adverse financial
factors connected with this proposal. Similarly, although Applicant's principal has committed to maintain the capital ratios of Bank of Piedmont and Dexter
Bank at a specified level, the Board believes it is
reasonable to expect an Applicant to demonstrate a
record of satisfactory performance before such commitments are accepted. 3
N o significant changes in the operations of Bank of
Piedmont or in the services offered to its customers are
anticipated to follow f r o m consummation of the proposed acquisition. Consequently, considerations relating to the convenience and needs of the communities
to be served are consistent with, but lend no weight
toward approval of this application.
On the basis of the record, the application is denied
for the reasons summarized above.
By order of the Board of Governors, effective
December 17, 1984.
Voting for this action: Vice Chairman Martin and Governors Partee and Rice. Voting against this action: Governor
Gramley. Absent and not voting: Chairman Volcker and
Governors Wallich and Seger.
WILLIAM W .
Secretary
[SEAL]
1. As of June 30, 1984.
2. E.g., Fourth National
L E T I N 7 3 0 ( 1 9 8 4 ) ; Unicorp
Corporation,
70 FEDERAL RESERVE BUL-
Bancshares,
Inc.,
69 FEDERAL
BULLETIN 808 (1983); and First Carmen Bancshares,
AL R E S E R V E B U L L E T I N 8 0 1 ( 1 9 8 3 ) .
WILES
of the Board
RESERVE
Inc., 69 FEDER-
3. E.g., American
BULLETIN 159 (1980).
National
Sidney
Corp.,
66 FEDERAL RESERVE
Legal Developments
Dissenting Statement
of Governor
Gramley
I would approve this application by Midwest Bancshares, Inc., Poplar Bluff, Missouri, to acquire Bank
of Piedmont, Piedmont, Missouri. The Board voted to
deny the application because of a finding that Applicant would not have the financial flexibility to meet its
debt-service obligations and serve as a source of
strength to its banking subsidiaries. This conclusion
was based upon the assessment that Applicant's projections were overly optimistic, in view of the recent
performance of Bank of Piedmont and Applicant's
subsidiary bank, First State Bank of Dexter.
The majority's analysis, in my view, does not take
sufficient account of Applicant's plans to strengthen
the management and operating procedures of Bank of
Piedmont, similar actions that Applicant's principal
has successfully instituted at the other banks he controls, and specific commitments by Applicant's principal to maintain capital at Bank of Piedmont and at all
of the other banks that he controls. Upon approval of
this proposal, Applicant would hire a new chief executive officer for Bank of Piedmont who has a wellestablished record in similar capacities in other banks.
At other institutions that he controls, Applicant's
principal has installed a strong management team and
satisfactory operating procedures that appear to have
resulted in improvements in the performance of these
other institutions. Finally, Applicant's principal has
personally committed to inject capital into all of the
banks he controls, including Bank of Piedmont, that
would maintain their respective primary capital ratios
at a level materially above the minimum ratios required under the Board's Capital Adequacy Guidelines. Applicant's principal appears to have adequate
resources to fulfill this commitment. Accordingly, I
believe that the financial and managerial resources and
future prospects of Applicant, its subsidiary bank,
Bank of Piedmont, and the other banks in the chain are
consistent with approval of this application.
I would approve this application.
December 17, 1984
Northwest Wisconsin Banco, Inc.
Spooner, Wisconsin
Order Denying Formation of Bank Holding
Company
Northwest Wisconsin Banco, Inc., Spooner, Wisconsin, has applied for the Board's approval under section 3(a)(1) of the Bank Holding Company Act
( " A c t " ) (12 U.S.C. § 1842(a)(1)) to become a bank
105
holding company by acquiring all of the voting shares
of Midwestern Banco, Inc., Spooner, Wisconsin, a
bank holding company within the meaning of the Act,
and thereby indirectly acquire Bank of Spooner,
Spooner, Wisconsin.
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 in light of the factors set forth in section 3(c) of
the Act (12 U.S.C. § 1842(c)).
Applicant, a nonoperating Wisconsin corporation
with no subsidiaries, was organized for the purpose of
becoming a bank holding company by acquiring Bank,
which holds deposits of $36.7 million. 1 Upon consummation of this proposal, Applicant would control the
134th largest commercial bank in Wisconsin, holding
approximately 0.1 percent of total deposits in commercial banks in the state.
Bank is the fourth largest of 15 commercial banking
organizations in the Rice Lake banking market, 2 and
holds 9.9 percent of total deposits in commercial banks
in the market. 3 Applicant's principal is not affiliated
with any other banking organization in the relevant
market, and consummation of the proposed transaction would not result in any adverse effects upon
competition or increase in the concentration of banking resources in any relevant area. Accordingly, the
Board concludes that competitive considerations under the Act are consistent with approval.
The Board has indicated on previous occasions that
a bank holding company should serve as a source of
financial and managerial strength to its subsidiary
bank and that the Board would closely examine the
condition of an applicant in each case with this consideration in mind. 4 In connection with this proposal,
Applicant would incur a sizeable amount of debt.
Applicant's debt retirement projections appear to be
overly optimistic. Using less optimistic projections
based upon Bank's recent record of performance, the
Board concludes that Applicant does not have sufficient financial flexibility to be able to reduce its
indebtedness in a satisfactory manner while maintain-
1. Banking data are as of June 30, 1984, unless otherwise indicated.
2. The Rice Lake banking market is defined as all of Barron and
Washburn Counties, and the western one-seventh of Sawyer County,
all in Wisconsin.
3. Banking data for the Rice Lake banking market are as of
September 31, 1983.
4 . See
Singer
& Associates,
7 0 FEDERAL RESERVE BULLETIN 883
(1984); Central Minnesota Bancshares,
Inc., 70 FEDERAL RESERVE
BULLETIN 877 (1984); Cambridge Financial Corporation, 69 FEDERAL
RESERVE BULLETIN ( 1 9 8 3 ) .
106
Federal Reserve Bulletin • February 1985
ing adequate capital levels at Bank. 5 In reaching this
conclusion, the Board has considered the decline in
Bank's capital ratio and the level of loan classifications.
Applicant's principal and its proposed chief executive officer have limited managerial experience and
have not established a satisfactory managerial performance record. 6 These factors raise additional concerns about the sizeable debt burden that would be
placed on Bank by this proposal. Based on these and
other facts of record, the Board concludes that financial and managerial considerations under the Act also
weigh against approval of this application.
Applicant has proposed no new services for Bank
upon consummation of this proposal. Considerations
relating to the convenience and needs of the community to be served are consistent with, but lend no weight
toward approval of this application.
On the basis of the facts of records of this application, the Board concludes that the banking considerations involved in this proposal are adverse and are
not outweighed by any relevant competitive or convenience and needs considerations. Accordingly, it is the
Board's judgement that approval of the application
would not be in the public interest and the application
should be and hereby is denied for the reasons summerized above.
By order of the Board of Governors, effective
December 21, 1984.
3(a)(1) of the Bank Holding Company Act (12 U . S . C .
§ 1842(a)(1)) of formation of a bank holding company
to acquire all of the voting shares of the successor by
merger to The First National Bank of Louisville,
Louisville, Georgia ( " B a n k " ) .
Notice of the application, affording an opportunity
for interested persons to submit c o m m e n t s 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 is a nonoperating corporation, organized
for the purpose of becoming a bank holding c o m p a n y
by acquiring Bank, which holds total deposits of $32
million. U p o n acquisition of Bank, Applicant would
control the 151st largest commercial banking organization in Georgia and approximately 0.12 percent of the
total deposits in commercial banks in the state. 1
Bank is the largest of the four commercial banks
located in the Jefferson County banking market and
controls approximately 46.5 percent of the total deposits in commercial banks in the market. 2 One of Applic a n t ' s principals also controls 48.4 percent of the
outstanding voting shares of the Bank of Wadley,
Wadley, Georgia ( " W a d l e y B a n k " ) , located 10 miles
from Bank and in the Jefferson County banking market. Wadley Bank ($12.2 million in deposits) is the
third largest bank in the market and holds 17.7 percent
of the m a r k e t ' s commercial bank deposits.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Rice, Gramley, and Seger.
In analyzing the competitive effects of an application to form a bank holding company where an individual, controlling more than one bank in a relevant
banking market, seeks to transfer control of one of the
banks to a holding c o m p a n y , the Board takes into
consideration the competitive effects of the transaction whereby c o m m o n ownership was established. 3 In
this case, the Board has considered the competitive
effect of the purchase in F e b r u a r y 1972, of the shares
of Wadley Bank by Applicant's principal. At that time,
Bank and Wadley Bank together controlled 63.8 percent of the deposits in the market, or 45.3 percent and
18.5 percent, respectively. 4 Upon consummation of
WILLIAM W .
Secretary
[SEAL]
WILES
of the Board
The Queensborough Company
Louisville, Georgia
Order Approving
Company
Formation
of a Bank
Holding
The Queensborough C o m p a n y , Louisville, Georgia,
has applied for the B o a r d ' s approval under section
5. The Board has previously stated that in small one-bank holding
company formations, it expects, among other things, that the bank
holding c o m p a n y ' s debt-to-equity ratio be reduced to no more than 30
percent within 12 years. Policy Statement for Formation of Small
One-Bank Holding Companies,
12 C . F . R . Part 225, Appendix B.
6. The Board has previously stated that it is reasonable to expect an
applicant to demonstrate a record of satisfactory managerial performance. See Central Minnesota Bancshares, Inc., supra; and American
National
Sidney
Corp.,
6 6 F E D E R A L RESERVE B U L L E T I N 159 ( 1 9 8 0 ) .
1. All banking data are as of December 31, 1983, unless otherwise
noted.
2. The Jefferson County banking market, which consists of all of
Jefferson County, Georgia, is the relevant geographic market for
purposes of analyzing the competitive effects of the proposed transaction.
3. See Mid Nebraska Bancshares,
Inc. v. Board of Governors of
the Federal Reserve System, 627 F.2d 266 (D.C. Cir. 1980).
4. Banking data are as of June, 1972.
Legal Developments
the 1972 acquisition, the Herfindahl-Hirschman Index
( " H H I " ) of 3048 increased by 1675 points to 4723. 5
While the Board is concerned with the anticompetitive effects of the 1972 transaction, a number of factors
indicate that the anticompetitive effects in this market
were clearly outweighed in the public interest by the
probable effects of the transaction on the convenience
and needs of the community to be served. At the time
Applicant's principal acquired control of Wadley
Bank, the financial and managerial resources of Wadley Bank had deteriorated and its f u t u r e prospects
appeared unsatisfactory. Wadley B a n k ' s physical facilities were inadequate, and the bank was not providing many basic banking services needed by the community, such as commercial lending services. U n d e r
those circumstances and in light of the economic
conditions in the market at that time, it appears that a
less anticompetitive acquisition was not readily available as a means for assuring the continuation of
Wadley Bank as a vehicle for serving the convenience
and needs of the public.
The Board has also taken into consideration facts of
record demonstrating that Wadley B a n k ' s financial
condition has improved substantially under the management of Applicant's principal and that there has
also been a significant improvement in Wadley B a n k ' s
facilities and in the services offered to the public. The
financial and managerial resources and future prospects of Applicant, Bank, and Wadley Bank are currently regarded as satisfactory and their prospects
appear favorable. Thus, banking factors and convenience and needs considerations lend significant
weight toward approval of this proposal and outweigh
any adverse competitive effects resulting from the
1972 acquisition. Accordingly, it is the B o a r d ' 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 consummated before the thirtieth
calendar day following the effective date of this Order
or later than three months after the effective date of
this Order, unless such period is extended for good
107
cause by the Board or by the Federal Reserve Bank of
Atlanta acting pursuant to delegated authority.
By order of the Board of Governors, effective
December 20, 1984.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Rice, Gramley, and Seger.
WILLIAM W .
Secretary
[SEAL]
WILES
of the Board
United Banks of Colorado, Inc.
Denver, Colorado
Order Approving
Acquisition
of a Bank
United Banks of Colorado, Inc., D e n v e r , Colorado, a
bank holding company within the meaning of the Bank
Holding Company Act ( " A c t " ) (12 U . S . C . § 1841
et seq.), has applied for the B o a r d ' 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 Intrawest Bank of
Boulder, N . A . , Boulder, Colorado ( " B a n k " ) .
Notice of the application, affording an opportunity
for interested persons to submit c o m m e n t s , has been
given in accordance with section 3(b) of the Act. The
time for filing c o m m e n t s has expired, and the Board
has considered the application and all c o m m e n t s received in light of the factors set forth in section 3(c) of
the Act (12 U . S . C . § 1842(c)).
Applicant, the largest banking organization in Colorado, controls 29 b a n k s with total deposits of approximately $3.1 billion, representing approximately 17.3
percent of total deposits in commercial b a n k s in the
state. 1 Bank is the 23rd largest commercial banking
organization in the state with total deposits of $111.5
million, representing approximately 0.6 percent of
total deposits in commercial banks in the state. Upon
acquisition of Bank, Applicant's share of total deposits
in commercial banks in the state would increase to 18
percent. Accordingly, consummation of this proposal
would not result in a significant increase in the concentration of banking resources in Colorado.
Applicant and Bank both operate in the DenverBoulder banking market. 2 Applicant is the largest of
156 commercial banking organizations in the market.
Applicant operates 15 banking subsidiaries in the
5. U n d e r the Justice Department Merger Guidelines, a market in
which the post-merger H H I is above 1800 is considered highly
concentrated. In such a market, the Justice Department is likely to
challenge a merger producing an increase by more than 50 points
unless other factors indicate that the merger will not substantially
lessen competition. If the increase in the H H I exceeds 100 and the
H H I substantially exceeds 1800, only in extraordinary cases will
factors establish that the merger is not likely to lessen competition
substantially.
1. All banking data are as of D e c e m b e r 31, 1983.
2. The Denver-Boulder banking market is approximated by the
Denver and Boulder RMAs.
108
Federal Reserve Bulletin • February 1985
market that control $2.6 billion in deposits, representing 21.7 percent of total deposits in commercial banks
in the market. Bank, with deposits of $111.1 million, is
the 16th largest commercial banking organization in
the market and controls 1 percent of total deposits in
commercial banks in the market. Upon consummation
of this transaction, Applicant would control 22.7 percent of the total deposits in commercial banks in the
market.
The Denver-Boulder County banking market is considered to be moderately concentrated, with the four
largest commercial banking organizations controlling
60.2 percent of the deposits in commercial banks in the
market. The Herfindahl-Hirschman Index ( " H H I " ) is
1063 and would increase by 34 points to 1097 upon
consummation of this proposal. 3
Although consummation of the proposal would eliminate some existing competition between Applicant
and Bank in the Denver-Boulder banking market,
numerous other commercial banking organizations
would remain as competitors after consummation of
the proposal. In addition, the presence of sixteen thrift
institutions that control approximately 37 percent of
the m a r k e t ' s total deposits mitigates the anticompetitive effects of the transaction. 4 Thrift institutions already exert a considerable competitive influence in the
market as providers of N O W accounts and consumer
loans. In addition, some of the thrift institutions are
engaged in the business of making commercial loans
and are providing an alternative for such services in
the Denver-Boulder market. Based upon the above
considerations, the consummation of the proposal is
not likely to substantially lessen competition in the
Denver-Boulder banking market. 5
The financial and managerial resources of Applicant, its subsidiary banks, and Bank are satisfactory.
3. Under the revised Department of Justice Merger Guidelines (49
Federal Register 26,823 (June 29, 1984)), where a market has a post
H H I of between 1000 and 1800 the Department is unlikely to challenge
a transaction that produces an increase in the H H I of less than 100
points.
4. The Board has previously indicated that thrift institutions have
become, or have the potential to become, major competitors of
commercial banks. National City Corporation, 70 FEDERAL RESERVE
B U L L E T I N 7 4 3 ( 1 9 8 4 ) ; NCNB
Bancorporation,
Considerations relating to the convenience and needs
of the communities to be served are also consistent
with approval. Based on the foregoing and other facts
of record, the Board has determined that consummation of the proposed transaction 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 acquisition shall not be c o n s u m m a t e d before the thirtieth
calendar day following the effective date of this Order,
or later than three months after the effective date of
this Order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
Kansas City pursuant to delegated authority.
By order of the Board of Governors, effective
December 18, 1984.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Rice, Gramley, and Seger.
WILLIAM W .
[SEAL]
Secretary
WILES
of the Board
Whitney Holding Corporation
New Orleans, Louisiana
Order Approving Acquisition
Holding
Company
of Shares of a Bank
Whitney Holding Corporation, N e w Orleans, Louisiana, a bank holding c o m p a n y within the meaning of
the Bank Holding C o m p a n y Act of 1956, as amended
(12 U . S . C . § 1841 et seq.) ( " A c t " ) , has applied for the
B o a r d ' s approval pursuant to section 3(a)(3) of the Act
(12 U . S . C . § 1842(a)(3)) to acquire all of the voting
shares of N B C Bancshares, Inc., Jefferson, Louisiana
( " C o m p a n y " ) , and indirectly of The National Bank of
Commerce in Jefferson Parish, Jefferson, Louisiana
("Bank").1
Notice of the application, affording interested persons an opportunity to submit comments, has been
given in accordance with section 3(b) of the Act
(12 U . S . C . § 1842(b)). The time for filing c o m m e n t s
7 0 FEDERAL RESERVE
BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL
RESERVE BULLETIN 802 (1983); First Tennessee National
Corporation,
6 9 FEDERAL RESERVE BULLETIN 298 (1983).
5. If 50 percent of deposits held by thrift institutions in the DenverBoulder banking market were included in the calculation of market
concentration, the share of total deposits held by the four largest
organizations in the market would be 46.5 percent. Applicant would
control 16.8 percent of the m a r k e t ' s deposits and Bank would control
.8 percent of the m a r k e t ' s deposits. The H H I would increase by 22
points to 733.
1. The proposed acquisition will be effected by merging Whitney
Acquisition, Inc., a wholly owned corporate subsidiary of Applicant
to be organized in contemplation of the proposed acquisition, into
Company, which will then be merged into Applicant. As a result of
these transactions, Applicant will own 100 percent of the outstanding
shares of Bank, and Bank will be a wholly o w n e d subsidiary of
Applicant.
Legal Developments
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, the largest commercial banking organization in Louisiana, controls one subsidiary bank with
total deposits of $1.7 billion, representing 5.9 percent
of total deposits in commercial banks in the state. 2
Company is the twenty-first largest commercial banking organization in the state, with one banking subsidiary that controls deposits of $311.6 million, representing 1.1 percent of the total deposits in commercial
banks in the state. Upon consummation of the proposed acquisition, Applicant would remain Louisiana's largest commercial banking organization and
would control approximately 7 percent of the total
deposits in commercial banks in the state. The Board
has considered the effects of the proposal on the
structure of banking in Louisiana and has concluded
that consummation of this transaction would not have
a significant adverse effect on the concentration of
banking resources in the state.
Applicant and Company compete in the New Orleans banking market, 3 where all of Applicant's and
Bank's offices are located. Applicant is the largest
commercial banking organization in the New Orleans
banking market, controlling 23.4 percent of the deposits in commercial banks in the market. Company is the
seventh largest banking organization in the market and
controls 4.4 percent of the deposits in commercial
banks in the market. Upon consummation of the
proposed acquisition, Applicant would remain the
largest commercial banking organization in the market, and would control 27.8 percent of the deposits in
commercial banks in the market.
The share of deposits held by the four largest
commercial banking organizations in the New Orleans
banking market is 65.6 percent, and the market's
Herfindahl-Hirschman Index ( " H H I " ) is 1349. Upon
consummation of this proposal, the four-firm concentration ratio would increase to 70.1 percent and the
H H I would increase 207 points to 1556, a level below
the "highly concentrated" range defined by the Department of Justice Merger Guidelines. 4 While the
109
proposed acquisition would eliminate some existing
competition in the New Orleans banking market, the
resulting degree of bank deposit concentration in the
market is only moderate, and the Board believes that
the anticompetitive effects of this proposal are substantially mitigated by the extent to which thrift institutions compete with commercial banks in the market. 5
The 45 thrift institutions that compete in the New
Orleans banking market hold total deposits of $4
billion, representing approximately 36 percent of the
total deposits in commercial banks and thrift institutions in the market. Seven of the market's 15 largest
depository institutions are thrift institutions. In 1983
the lending powers of Louisiana-chartered homestead
savings and loan associations were expanded to substantially parallel the expanded powers of federallychartered thrift institutions operating in the state under
the Garn-St Germain Depository Institutions Act of
1982.6 The record indicates that thrift institutions in
the New Orleans banking market are aggressively
utilizing their expanded powers to compete with commercial banks in the market, offering consumer services such as N O W accounts and consumer loans, as
well as commercial and industrial loans to commercial
borrowers. Based upon this and other evidence of
record, the Board has concluded that the competition
offered by thrift institutions in the New Orleans banking market mitigates the anticompetitive effects of this
proposal and that consummation of this proposal
would not have a significant adverse effect on existing
competition in the market. 7
The financial and managerial resources and future
prospects of Applicant, Company, and Bank are satisfactory and consistent with approval of this application. Considerations relating to the convenience and
needs of the communities to be served also are consis-
5. The Board has previously determined that thrift institutions have
become, or at least have the potential to become, major competitors of
banks. NCNB Corporation,
70 FEDERAL RESERVE BULLETIN 225
( 1 9 8 4 ) ; Sun
Banks,
Merchants
Bancorp,
Inc.,
(1983); First Tennessee
69 FEDERAL RESERVE BULLETIN 934 (1983);
Inc.,
69
National
FEDERAL
RESERVE
Corporation,
BULLETIN
865
69 FEDERAL RESERVE
BULLETIN 298 (1983).
2. Banking data are as of December 31, 1983.
3. The N e w Orleans banking market is comprised of Jefferson,
Orleans, St. Bernard, and St. Tammany Parishes in Louisiana.
4. Under the Department of Justice Merger Guidelines, a market in
which the post-merger H H I is between 1000 and 1800 is considered
"moderately c o n c e n t r a t e d . " In such a market, where the resulting
increase in the H H I is more than 100, the Department is likely to
challenge a merger unless other facts of record indicate that the
merger is not likely substantially to lessen competition.
6. Compare La. Rev. Stat. Ann. § 6:822 (West Supp. 1984) with
12 U.S.C. § 1464(c) (1982).
7. If 50 percent of the deposits held by thrift institutions were
included in the calculation of market concentration, Applicant's postmerger market share would be 21.7 percent, and the post merger H H I
would be 1055, 124 points above the pre-merger H H I but only 55
points above the " u n c o n c e n t r a t e d " range under the Justice Department Merger Guidelines. After consummation of this proposal, 74
banking and thrift institutions will remain within this large banking
market.
110
Federal Reserve Bulletin • February 1985
tent with approval. Based on these and other facts of
record, it is the B o a r d ' s judgment that consummation
of the proposed transaction would be in the public
interest and that the application should b e approved.
On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be c o n s u m m a t e d before the thirtieth
calendar day following the effective date of this Order
or later than three m o n t h s 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
December 5, 1984.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Rice, and Gramley. Absent and not
voting: Governor Seger.
JAMES M C A F E E
Associate
[SEAL]
Secretary
of the Board
Worthen Banking Corporation
Little Rock, Arkansas
Order Approving
Acquisition
of Bank
Worthen Banking Corporation, Little Rock, Arkansas,
a bank holding c o m p a n y within the meaning of the
Bank Holding C o m p a n y Act of 1956, as amended
( " A c t " ) (12 U . S . C . § 1841 et seq.), has applied for the
B o a r d ' s approval u n d e r section 3(a)(3) of the Act
(12 U . S . C . § 1842(a)(3)) to acquire at least 88.06 percent of the voting shares of First National Bank of
Fayetteville, Fayetteville, Arkansas ( " B a n k " ) .
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 c o m m e n t s 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, the largest banking organization in Arkansas, controls 11 banks with aggregate deposits of
$1.7 billion, representing 12.8 percent of total deposits
in commercial banks in Arkansas. 1 Bank, the 13th
largest banking organization in Arkansas, controls
deposits of $187.7 million, representing 1.4 percent of
total deposits in commercial banks in Arkansas. U p o n
consummation of this proposal, Applicant would con-
trol total deposits of $1.9 billion, representing 14.2
percent of total deposits in commercial b a n k s in the
state. The Board has considered the effects of this
proposal on the structure of banking in Arkansas,
which is one of the least concentrated states in the
nation, and concludes that consummation of this proposal would not significantly increase the concentration of banking resources in the state.
Bank and a subsidiary of Applicant, First State
Bank of Springdale, Springdale, Arkansas, both operate in the Fayetteville/Springdale banking market. 2
Bank is the second largest of 13 commercial banking
organizations in the m a r k e t , controlling deposits of
$187.7 million, representing 15.6 percent of deposits in
commercial banks there. Applicant's subsidiary is the
fifth largest commercial banking organization in the
market, controlling deposits of $119.5 million, representing 9.9 percent of deposits in commercial banks in
the market.
The Fayetteville/Springdale banking market is considered to be moderately concentrated, with a fourfirm concentration ratio of 62.2 percent and a Herfindahl-Hirschman Index ( " H H I " ) of 1364. U p o n
consummation of this proposal, Applicant's share of
deposits in commercial banks would increase to 25.5
percent, and Applicant would become the largest
commercial banking organization in the market. The
percentage of deposits held by the four largest banking
organizations in the market would increase to 73.1
percent and the H H I would increase by 310 points—
f r o m 1364 to 1674. 3
While this acquisition would eliminate some existing
competition, the Board believes that the anticompetitive effects of this proposal are mitigated by the
presence of thrift institutions in the market. 4 Eight
thrift institutions c o m p e t e in the market, including
four of the ten largest depository organizations in the
market. Together, the eight thrift institutions control
total deposits of $519.8 million, representing 30.2
percent of the total deposits in the market. These thrift
institutions offer N O W accounts and consumer loans.
Five of the eight thrift institutions offer commercial
2. The Fayetteville/Springdale banking market is approximated by
Benton and Washington Counties, Arkansas.
3. Under the Department of Justice Merger Guidelines, a market in
which the post-merger H H I is b e t w e e n 1000 and 1800 is considered
moderately concentrated. In such a m a r k e t , where the increase in the
H H I is greater than 100 points, the Department is likely to challenge a
merger unless other facts of record indicate that the merger is not
likely to substantially lessen competition.
4. The Board has previously determined that thrift institutions have
become, or at least have the potential to become, major competitors of
banks. NCNB Corporation,
70 FEDERAL RESERVE BULLETIN 225
( 1 9 8 4 ) ; Sun
Banks,
Merchants
Bancorp,
(1983); Monmouth
1. Banking data are as of June 30, 1984.
Inc.,
69 FEDERAL RESERVE BULLETIN 934 (1983);
Inc.,
Financial
BULLETIN 867 (1983).
69
FEDERAL
Services,
RESERVE
Inc.,
BULLETIN
865
69 FEDERAL RESERVE
Legal Developments
loans (other than commercial real estate loans) and
four offer commercial checking accounts. Accordingly, in view of the facts cited above and other facts of
record, the Board concludes that consummation of
this proposal would not have a significant adverse
effect on existing competition in the Fayetteville/
Springdale banking market. 5
Based on the foregoing and other facts of record, the
Board concludes that consummation of the proposed
transaction would not have any significant adverse
effects on existing or potential competition and would
not significantly increase the concentration of banking
resources in any relevant area. Thus, competitive
considerations are consistent with approval of the
application.
The financial and managerial resources of Applicant
and its subsidiaries and Bank are considered generally
satisfactory and their prospects appear favorable.
Thus, considerations relating to banking factors are
consistent with approval of the application. Applic a n t ' s acquisition of Bank would make a higher lending limit available to Bank. Bank would be able to offer
lower credit life and accident and health insurance
rates as a result of affiliation with Applicant's insurance subsidiary. Bank would also be able to offer the
resources of Applicant's Edge Act corporation and
small business investment company. Thus, the Board
concludes that considerations relating to the convenience and needs of the communities to be served lend
some weight toward approval of this application.
Accordingly, based upon the foregoing and other
facts of record, the Board has determined that this
proposal should be and hereby is a p p r o v e d . The
transaction shall not be consummated before the thirtieth calendar day following the effective date of this
Order, or later than three months after the effective
date of this Order, unless such period is extended for
good cause by the Board or the Federal Reserve Bank
of St. Louis, acting pursuant to delegated authority.
By order of the Board of Governors, effective
December 17, 1984.
Voting for this action: Vice Chairman Martin and Governors Partee, Rice, and Gramley. Absent and not voting:
Chairman Volcker and Governors Wallich and Seger.
111
Orders Issued Under Section 4 of Bank Holding
Company Act
Bankers Trust New York Corporation
New York, New York
Order Approving Application to Execute and Clear
Futures Contracts on a Municipal Bond Index and to
Provide Futures Advisory
Services
Bankers Trust N e w York Corporation, N e w York,
N e w York, a bank holding company within the meaning of the Bank Holding Company Act, 12 U . S . C .
§ 1841 et seq. ( " B H C A c t " ) , has applied pursuant to
section 4(c)(8) of the B H C Act and section 225.23(a)(3)
of the B o a r d ' s Regulation Y, 12 C . F . R . § 225.23(a)(3),
to engage de novo through its wholly owned subsidiary, BT Futures Corp. ( " B T F u t u r e s " ) , N e w York,
N e w York, in executing and clearing futures contracts
on a municipal bond index. Applicant also proposes to
offer futures advisory services on a fee basis or as an
integrated package of services to futures commission
merchant ( " F C M " ) c u s t o m e r s through BT Futures.
Notice of the application, affording interested persons an opportunity to submit comments on the relation of the proposed activity to banking and on the
balance of the public interest factors regarding the
application, has been duly published, 49 Federal Register 46,493 (1984). The time for filing c o m m e n t s has
expired and the Board has considered the application
and all comments received 1 in light of the public
interest factors set forth in section 4(c)(8) of the B H C
Act.
Applicant, with consolidated assets of $43.2 billion, 2
is the sixth largest banking organization in N e w York.
Applicant operates t w o subsidiary banks and engages,
directly and through certain of its subsidiaries, in a
broad range of permissible nonbanking activities
throughout the United States. BT F u t u r e s is an F C M
registered with the Commodity F u t u r e s Trading Commission ( " C F T C " ) that engages in futures activities
permissible for bank holding companies under section
225.25(b)(18) of the B o a r d ' s Regulation Y, 12 C . F . R .
§ 225.25(b)(18). The capitalization of B T F u t u r e s is
adequate to permit it to engage in the proposed nonbanking activities.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
5. If 50 percent of the deposits held by thrift institutions were
included in the calculation of market concentration, Applicant would
control 8.2 percent of deposits and Bank would control 12.8 percent.
Consummation of the proposal would increase the H H I by 210 points,
from 983 to 1193, and the four-firm concentration ratio would be 60.1
percent.
1. Comments in favor of the proposal included those submitted by
Vermont National Bank, Bank of America, the Chicago Board of
Trade, the First National Bank and Trust C o m p a n y of Tulsa, the First
National Bank of Atlanta, and Marine Midland Bank. The First
National Bank & Trust C o m p a n y of Beloit, Beloit, Wisconsin, and
Mr. Sanford Takiff, Highland Park, Illinois, submitted comments in
opposition to the proposal.
2. As of June 30, 1984.
112
Federal Reserve Bulletin • February 1985
The Board has previously approved by regulation
the activity of executing and clearing futures on
bullion, foreign exchange, U.S. government securities and money market instruments, 12 C.F.R.
§ 225.25(b)(18), primarily on the basis that banks may
hold and deal in the underlying cash items. The
proposed futures contract on a municipal bond index is
a financial future that is based on an index of general
obligation bonds and revenue bonds selected by The
Bond Buyer. The Bond Buyer Municipal Bond Index is
composed of 50 tax-exempt municipal revenue and
general obligation bonds chosen on the basis of criteria
that favor recently issued and actively traded bonds.
The index is intended to be an accurate indicator of
trends and changes in the municipal bond market.
Applicant has stated that the offering of futures contracts based on the bond index would provide FCM
customers a useful tool for hedging the price risk
associated with a portfolio of municipal bonds.
Banks are permitted to hold and deal in general
obligation bonds, and they are active participants in
the cash markets for these bonds. Applicant has stated
that it has long been a major participant, both for its
own account and for the account of its customers, in
the municipal securities cash market for general obligation bonds and revenue bonds. 3 In addition, banks
have been authorized to purchase and sell municipal
bond index futures for hedging purposes. 4
The purpose for which the contract would be offered
is to provide customers a device to hedge their municipal bond positions. It appears that the proposed futures contract, because it is based on a broad spectrum
of municipal securities, has the potential to be a more
effective hedging vehicle for municipal securities positions than any of the existing interest rate futures
contracts.
The Board has determined that Applicant's proposal
to execute and clear such futures contracts is substantially similar to proposals to broker other financial
futures previously approved by the Board, and Applicant's prior experience in the municipal securities
3. Banks are prohibited by the Glass-Steagall Act from dealing in
revenue bonds, although they may hold certain municipal revenue
bonds. 12 U.S.C. § 24(7). However, Applicant would not be dealing in
or underwriting revenue bonds, but would be executing and clearing a
futures contract on an index that includes such bonds.
4. The Board's staff recently expressed its opinion that state
member banks may use futures contracts on The Bond Buyer Municipal Bond Index in hedging operations. Letter to Galen Burghardt, Jr.,
Chicago Mercantile Exchange, and to Scott B. Earley, Chicago Board
of Trade (August 22, 1984). Similarly, staff of the Office of the
Comptroller of the Currency has opined that a national bank's
purchase and sale of municipal bond index futures is incidental to
banking when used in a manner that is consistent with the Comptroller's policy statement on bank use of futures. Letter from Owen
Carney, Office of the Comptroller of the Currency, to Roger D. Rutz,
Chicago Board of Trade (April 17, 1984).
markets indicates that BT Futures would have the
expertise to provide the proposed services. Accordingly, the Board concludes that, in the manner proposed, and subject to the conditions set forth in
section 225.25(b)(18) of Regulation Y, Applicant's
proposal to execute and clear futures contracts on a
municipal bond index is closely related to banking.
With respect to the proposed advisory activities, the
Board has previously approved by Order the provision
of advisory services relating to approved F C M activities. 5 Applicant proposes to provide FCM advisory
services either on a separate fee basis or as an integrated package of services to FCM customers. The services would include written or oral presentations on
the historical relationship between the cash and futures markets, a demonstration of examples of financial futures uses for hedging, and assistance in structuring a hedging strategy. Applicant will deal solely
with major corporations and other financial institutions in its provision of the proposed services. Approval of advisory services with respect to the proposed futures on a municipal bond index would be
consistent with the Board's authorization of advisory
services with respect to other approved financial options and futures traded through FCMs.
In order to approve this application, the Board is
also required to determine that the performance of the
proposed activities by Applicant "can reasonably be
expected to produce benefits to the public . . . that
outweigh possible adverse effects . . . . " (12 U.S.C.
§ 1843(c)(8)). Consummation of Applicant's proposal
would provide added services to those clients of
Applicant and its subsidiaries that trade in the cash,
forward and futures markets for these instruments. In
addition, the Board expects that the de novo entry of
Applicant into the market for these services would
increase the level of competition among providers of
these services. Accordingly, the Board concludes that
the performance of the proposed activities by Applicant can reasonably be expected to produce benefits to
the public.
The Board also has considered the potential for
adverse effects that may be associated with this proposal. It does not appear that the proposed FCM
activities would entail risks or conflicts of interests
different than those considered and addressed by the
Board in its approvals of other FCM activities. 6 In
addition, the Board has taken into account and has
relied on the regulatory framework established pursu-
5. Manufacturers
Hanover
B U L L E T I N 3 6 9 ( 1 9 8 4 ) ; J.P.
Corporation,
Morgan
& Co.,
70 FEDERAL RESERVE
Incorporated,
70 FEDER-
AL R E S E R V E B U L L E T I N 7 8 0 ( 1 9 8 4 ) .
6 . E.g.,
J.P.
Morgan
BULLETIN 514 (1982).
& Co.
Incorporated,
6 8 FEDERAL RESERVE
Legal Developments
ant to law by the C F T C for the trading of futures, as
well as the conditions set forth in section 225.25(b)(18)
of Regulation Y with respect to executing and clearing
futures contracts.
Based upon a consideration of all the relevant facts,
the Board concludes that the balance of the public
interest factors that the Board is required to consider
under section 4(c)(8) is favorable. H o w e v e r , the Board
notes that trading of the futures contract involved in
this application has not been approved by the C F T C .
Accordingly, approval of Applicant's proposal is conditioned upon C F T C approval of a contract substantially similar to that described in the application to the
Board. In addition, the Board reserves authority to
reconsider its actions in approving the proposal as a
record of F C M experience with respect to trading if
this contract develops.
This determination is also subject to all of the
conditions set forth in Regulation Y, including sections
225.4(d) and 225.23(b)(3) (12 C . F . R . §§ 225.4(d) and
225.23(b)(3)), and to the B o a r d ' s authority to require
such modification or termination of the activities of a
bank holding c o m p a n y or any of its subsidiaries as the
Board finds necessary to assure compliance with the
provisions and purposes of the Act and the B o a r d ' s
regulations and orders issued thereunder, or to prevent evasion thereof.
The transaction shall be made not later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of N e w York pursuant to
delegated authority.
By order of the Board of Governors, effective
December 21, 1984.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Rice, Gramley, and Seger.
WILLIAM W .
[SEAL]
Secretary
WILES
of the Board
Barclays Bank PLC and Barclays Bank
International Limited, et al.
London, England
113
Northeast Bancorp, Inc., N e w H a v e n , Connecticut
( " N o r t h e a s t " ) ; M a n u f a c t u r e r s H a n o v e r Corporation,
N e w York, N e w York ( " M H C " ) ; The Bank of N e w
York Company, Inc., N e w York, N e w York
( " B O N Y " ) ; and The Hongkong and Shanghai Banking Corporation, H o n g Kong, B . C . C . ( " H S B C " ) ; Kellett N V , Curacao, Netherlands Antilles; H S B C Holdings BV, A m s t e r d a m , the Netherlands; and Marine
Midland Banks, Inc., Buffalo, N e w York (the latter
four organizations collectively, " M a r i n e " ) (applicants
as a group hereafter are referred to as the "Applic a n t s " ) , all bank holding companies within the meaning of the Bank Holding Company Act (12 U . S . C .
§ 1841 et seq.) ( " A c t " ) , have applied for the B o a r d ' s
approval under section 4(c)(8) of the Act (12 U . S . C .
§ 1843(c)(8)) and section 225.23 of the B o a r d ' s Regulation Y (12 C . F . R . § 225.23), to acquire shares of the
N e w York Switch Corporation ( " N Y S C " ) , Fort L e e ,
N e w Jersey, a joint venture to engage in data processing and related activities. 1
N Y S C , a de novo corporation, proposes to operate
an electronic funds transfer ( " E F T " ) system for interchanging financial transactions of depository institutions that contract for N Y S C ' s services. N Y S C ' s
interchange system (the " S w i t c h " ) would operate as a
neutral clearing house for electronic f u n d s transfer,
payment, and withdrawal transactions at automated
teller machines ( " A T M s " ) operated by any participating institution, and would enable customers of participating institutions to complete such E F T transactions
at A T M s operated by any m e m b e r of the system.
These A T M s are and would continue to be owned (or
leased) and operated, not by N Y S C , but by the
participating institutions. The participating institutions, not N Y S C , issue the cards used for access to
ATMs in the Switch.
N Y S C also proposes to offer, through the Switch,
data transmission and processing services in connection with point-of-sale ( " P O S " ) transactions. Such
POS transactions would involve the transfer of funds
from the checking, savings, or credit card account of a
participating institution's customer to a m e r c h a n t ' s
account. The proposed P O S services would be the
subject of agreements between merchants and participating institutions, and the P O S terminals would be
Order Approving Joint Venture to Engage in Data
Processing and Related
Activities
Barclays Bank P L C and Barclays Bank International
Limited, both of L o n d o n , England ( " B a r c l a y s " ) ;
Chemical N e w York Corporation, N e w York, N e w
York ( " C h e m i c a l " ) ; National Westminster Bank
P L C , L o n d o n , England and N a t W e s t Holdings, Inc.,
N e w York, N e w York (collectively, " N a t W e s t " ) ;
1. Upon consummation of this proposal, Chemical, M H C , B O N Y ,
NatWest, and Marine each would hold a 14.44 percent interest in
NYSC. Northeast and Barclays each would hold a 6.68 percent
interest. The remaining 14.44 percent interest would be held by
Goldome Corporation, a wholly owned subsidiary of Goldome F S B
( " G o l d o m e " ) , a federally chartered stock savings bank located in
Buffalo, N e w York. Goldome, among its other operations, controls
two savings and loan associations in Florida, which would participate
in N Y S C operations.
114
Federal Reserve Bulletin • February 1985
owned and operated by merchants or participating
institutions, not by NYSC.
NYSC initially proposes to provide switching services for financial institutions located in New York,
New Jersey, Connecticut and, to the limited extent
permitted by state law, in Florida. It plans eventually
to offer its services to institutions throughout the
United States.
The proposed data processing and related activities
have been determined by the Board to be closely
related to banking and are permissible under section 225.25(b)(7) of Regulation Y (12 C.F.R.
§ 225.25(b)(7)(i) and (ii)). Notice of these applications,
affording opportunity for interested persons to submit
comments, has been duly published. 49 Federal Register 37,665 (1984). The time for filing comments has
expired, and the Board has considered the applications
and all comments received in light of the public
interest factors set forth in section 4(c)(8) of the Act.
Applicants are among the largest commercial banking organizations operating in the Metropolitan New
York market 2 —five of the ten largest organizations in
the market are included in this proposal. 3 Although all
Applicants presently operate proprietary ATM networks and three also belong to shared networks, only
Marine owns a network that presently provides to
unaffiliated financial institutions data processing services of the kinds to be provided through the Switch.
However, under the terms of the Switch agreement
Marine could continue to provide such E F T switching
services to nonaffiliates.
In addition, all existing proprietary ATM networks
of Applicants would continue to operate, as NYSC
would merely interface among those systems. Each
co-venturer would retain complete control over expansion of its own ATM networks, pricing and selection of
ATM services, and placement of terminals, and thus
would continue to compete with the other co-ventur-
2. The Metropolitan N e w York market is defined to include N e w
York City, Nassau, Putnam, Rockland, Westchester, and western
Suffolk Counties in N e w York State; the northeastern two-thirds of
Bergen County and eastern Hudson County in New Jersey; and
southwestern Fairfield County in Connecticut.
3. Barclays and NatWest (ranked fourth and fifth, respectively,
among the largest banking organizations in the world) are British
banking organizations that operate large banks in N e w York City.
Another Applicant, Northeast, is the third largest banking organization in Connecticut. H S B C is the 21st largest bank in the world and,
through Marine, is among the ten largest banking organizations in
N e w York State. The remaining three Applicants, Chemical, M H C ,
and B O N Y , are among the ten largest banking organizations in New
York State. All Applicants operate extensively throughout (but not
exclusively within) the Metropolitan N e w York market.
The largest competitors in that market are not part of this proposal.
The Chase Manhattan Bank, N.A. ( " C h a s e " ) , and Citibank, N . A . ,
operate proprietary A T M networks; in addition, Chase is a member of
the Plus System, a nationwide shared ATM network.
ers in the operation of ATM networks. Furthermore,
the terms of the agreements between NYSC and the
participating institutions permit the co-venturers and
all other participating institutions to join other switching networks. In light of these and other facts of
record, the Board concludes that consummation of
this proposal would not have a significant adverse
effect on existing competition in the provision of ATM
or POS services in the Metropolitan New York and
New York State markets.
The Board also has considered the effects of consummation of this proposal on probable future competition in the provision of E F T switching services,
particularly in light of the fact that this application
involves the use of a joint venture to engage in the
relevant activities. As noted above, Applicants encompass some of the largest banking organizations in
the Metropolitan New York market. Each Applicant is
of sufficient size and experience in providing data
processing services to be regarded as a likely potential
entrant in that market. This proposal does reduce the
likelihood that Applicants would organize similar regional networks independently.
Upon consummation of the proposal, however, at
least 14 other nationwide, regional, and statewide
shared networks would remain in the Metropolitan
New York market as competitors of NYSC. 4 Moreover, a number of other large financial institutions that
are not members of shared networks would be available for membership in networks presently not represented in the market. The existence of these current
and potential entrants mitigates concerns that the
NYSC interchange system may represent so large a
proportion of possible ATM terminals in local markets
that no other switches could successfully compete.
Furthermore, as indicated above, Applicants are not
prevented from forming shared networks independent
of NYSC and thus competing with NYSC in the
provision of data processing services. In light of this
and other evidence of record, the Board concludes
that consummation of the proposed joint venture
would not have a significant adverse effect on probable
future competition.
To the limited extent that the NYSC Switch will
operate within the state of Florida, the Board also
concludes that there would be no significant adverse
effects on existing or potential competition in that
4. Nationwide systems include: " N a t i o n e t " , " C i r r u s " , " M a s t e r teller", " P l u s " , " T h e E x c h a n g e " , " V i s t a " , and " M a s t e r c h a r g e " ;
and regional systems include " C a s h s t r e a m " , " M A C " , and " N o r t h east E x c h a n g e " . In addition, The Chase Manhattan Corporation and
Citicorp each operate networks for nonaffiliates in N e w York (as does
one Applicant, Marine). " Y a n k e e 2 4 " serves Connecticut, and " T h e
T r e a s u r e r " serves N e w Jersey.
Legal Developments
market. The Board previously has examined the market for the provision of data processing services to
unaffiliated financial institutions in Florida and found
it to be unconcentrated, with numerous existing and
potential competitors. Atlantic Bancorporation,
69
FEDERAL RESERVE BULLETIN 6 3 9 , 641 ( 1 9 8 3 ) .
The Board has considered whether consummation
of this proposal would result in unfair competitive
practices, violations of law, or other substantially
adverse effects. In this regard, the Board notes that all
depository institutions would have equal access to
membership in N Y S C , and that the terms of the
proposed contracts between N Y S C and the participating institutions are reasonably related to the operations of the Switch. After review of the applications
and other facts of record, the Board concludes that
consummation of this proposal is not likely to result in
unfair competition, conflicts of interest, or unsound
banking practices.
The Board also has considered the effect of consummation of this proposal in light of state and federal
laws governing the establishment of branches and the
use of A T M s in a network. As described above, the
N Y S C network would only provide data processing
services for the interchange and would neither own
nor operate A T M s . Moreover, Applicants have committed that N Y S C will comply with all applicable state
and federal laws in offering its switching services to
depository institutions. 5
It is the B o a r d ' s view that approval of these applications can reasonably be expected to produce benefits
to the public. Consummation of this proposal would
give individuals in N e w York State and in the Metropolitan N e w York area (and, to a limited extent, in
Florida) access to a larger number of A T M terminals
and would increase the availability of P O S services to
consumers. In addition, the economies of scale that
would result f r o m the expanded network would accrue
115
to all participating institutions. Finally, the greatly
expanded resources provided by the joint venture
would enable N Y S C to improve and expand its E F T
services to compete effectively with other regional and
national switches.
Based upon the foregoing and other facts of record,
the Board has determined that the balance of public
interest factors it is required to consider under section
4(c)(8) favors approval of these applications. In addition, the financial and managerial resources and future
prospects of the Applicants and N Y S C are considered
consistent with approval. Accordingly, these applications are hereby approved. This determination is subject to all of the conditions set forth in Regulation Y,
including those in sections 225.4(d) and 225.23(b), and
to the B o a r d ' s authority to require such modification
or termination of the activities of a bank holding
company or any of its subsidiaries as the Board finds
necessary to assure compliance with the provisions
and purposes of the Act and the B o a r d ' s regulations
and orders issued thereunder, or to prevent evasion
thereof.
This transaction shall not be c o n s u m m a t e d 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 R e s e r v e Bank of N e w
York pursuant to delegated authority.
By order of the Board of Governors, effective
December 11, 1984.
Voting for this action: Vice Chairman Martin and Governors Partee and Rice. Abstaining from this action: Governor
Gramley. Absent and not voting: Chairman Volcker and
Governors Wallich and Seger.
WILLIAM W .
[SEAL]
Secretary
of the
WILES
Board
First National State Bancorporation
Newark, New Jersey
5. In that regard, the Board has reviewed the state banking laws of
N e w York, Connecticut, and N e w Jersey, as interpreted by those
states' respective banking authorities, and all appear to permit the
establishment of A T M s in-state, as well as the interstate sharing of
those A T M s under the circumstances contemplated in this proposal.
The Florida E F T statute that allows interstate sharing of ATMs,
however, is not completely clear on its face. Fla. Stat. Ann.
§ 658.65(9) may be read to authorize the interstate sharing only of
those A T M s located in Florida that are established by " b a n k s " (as
defined in section 658.65(l)(a) of that statute), and not those established by other types of financial institutions (e.g., savings and loan
associations and credit unions). There exists a question, therefore, as
to whether the A T M s operated by co-venturer Goldome's savings and
loan subsidiaries in Florida may be used by the customers of out-ofstate banks under Florida law. Applicants have committed that they
will not permit the A T M s established by G o l d o m e ' s Florida subsidiaries (or by any other participating savings and loan association or credit
union in Florida) to be used by the customers of out-of-state banks
that are participants in the network until it is clear that such use is
permitted under Florida law.
Order Approving the Acquisition of an Institution
Offering Checking Accounts and Consumer
Lending
First National State Bancorporation, N e w a r k , N e w
Jersey, a bank holding c o m p a n y within the meaning of
the Bank Holding C o m p a n y Act (12 U . S . C . § 1841
et seq.) ( " A c t " ) has applied for approval under section 4(c)(8) of the Act (12 U . S . C . § 1843(c)(8)) and
section 225.23(a)(1) of the B o a r d ' s Regulation Y
(12 C . F . R . § 225.23(a)(1)) to acquire F N S Bank of
N e w York, N e w York ( " B a n k " ) , a de novo bank that
will offer d e m a n d deposit accounts, including checking
accounts, and make consumer loans. These activities
have been previously determined by the Board to be
116
Federal Reserve Bulletin • February 1985
closely related to banking. (12 C . F . R . § 225.25(b)(1);
U.S. Trust Corporation, 7 0 F E D E R A L R E S E R V E B U L LETIN 3 7 1 ( 1 9 8 4 ) ) .
Notice of the application, affording opportunity for
interested persons to comment, has been duly published (49 Federal Register 40,972 (1984)). 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 4(c)(8)
of the Act (12 U.S.C. § 1843(c)(8)).
Applicant is the largest banking organization in New
Jersey, with total assets of $10.2 billion. 1 Applicant
operates six subsidiary banks with total deposits of
approximately $6.3 billion, representing approximately 18.2 percent of deposits in commercial banks in
New Jersey. Applicant is the 18th largest commercial
banking organization in the Metropolitan New York
banking market, 2 where it operates 48 offices with
deposits of about $1 billion, representing approximately 0.6 percent of deposits in commercial banks in that
market. 3
Bank is the first nonbank bank with deposit-taking
powers to receive its charter from New York State.
Bank will accept demand deposits and make loans to
individuals for personal, family, household or charitable purposes, but will not engage in the business of
making commercial loans as that term is defined in the
Board's Regulation Y. 12 C.F.R. § 225.2(a)(1)(B). On
this basis, Applicant asserts that Bank will not be a
" b a n k " under the Act and that this application is
therefore filed properly under section 4(c)(8) of the
Act.
In its decision earlier this year in U.S. Trust Corporation, the Board was constrained by the technical
definition of " b a n k " in the Act to conclude that a bank
holding company could acquire, on an interstate basis,
a national bank that would accept demand deposits but
not make commercial loans. The Board established the
following conditions, however, to prevent the linkage
or integration of the applicant's activities with those of
the proposed nonbank bank, as well as transactions
between the nonbank bank and its holding company
affiliates, in order to limit, to the extent possible, the
potential for undermining the policies of the Act:
1. Applicant will not operate the demand-deposit
taking activities of the bank in tandem with any
other subsidiary or other financial institution;
1. Financial data are as of June 30, 1984, unless otherwise indicated.
2. The Metropolitan N e w York market includes all or part of N e w
York City, Westchester, Suffolk, N a s s a u , Rockland and Putnam
Counties in N e w York State; Fairfield County in Connecticut; and
Bergen and H u d s o n Counties in N e w Jersey.
3. Data concerning Applicant's size in N e w Jersey are as of
December 31, 1982. Data concerning Applicant's size in the Metropolitan N e w York Banking Market are as of June 30, 1982.
2. Applicant will not link in any way the demand
deposit and commercial lending services that define
a bank under the Act; and
3. the nonbank bank will not engage in any transactions with affiliates, other than the payment of
dividends to Applicant or the infusion of capital by
Applicant into the bank, without the Board's approval.
These conditions preclude the type of integrated
operation that could otherwise render Bank a bank for
purposes of the Act. Applicant has stated in its application that it will comply with each of these conditions. 4 Applicant does not engage in commercial lending through any office in New York and there is no
evidence in the record that consummation of the
proposal will result in integrated operations between
Bank and any office or affiliate of Applicant or other
financial institution engaged in commercial lending.
On the basis of these facts and for the reasons set out
more fully in the Board's decision in U.S. Trust, the
Board is constrained, as it was in U.S. Trust, to
conclude that Bank will not be a bank as that term is
defined in the Act and that Applicant's proposal is
properly filed under section 4 of the BHC Act.
Applicant has requested the Board's approval to
provide internal administrative data processing and
accounting services to Bank and to have certain common officers and directors with Bank. The Board has
decided to consider whether to grant approval for such
limited intercorporate arrangements at a public meeting to be held on January 9, 1985.
The Board finds no evidence that consummation of
this proposal would result in any conflicts of interest,
unfair competition, unsound banking practices, or
other adverse effects. Due to the de novo nature of this
proposal, there will not be any decrease in competition. Consummation of the proposal may reasonably
be expected to result in increased competition.
The Board has previously indicated its reluctance to
approve nonbank bank acquisitions in view of the
potential presented by such acquisitions to significantly alter the banking structure without Congressional
action on the underlying policy issues. 5 For the rea-
4. Bank will be located on the concourse level of the World Trade
Center in N e w York City. Applicant currently maintains an international representative office on the 21st floor of T w o World Trade
Center. Applicant has stated that its international representative office
is not a loan production office and is not authorized t o transact any
banking business under N e w York law. Applicant has committed that
there will be no sharing of quarters or personnel between the
international representative office and Bank, and no contact between
the international representative office's staff and customers of Bank.
5. U.S. Trust Corporation, supra; Bankers Trust New York Corporation,
7 1 F E D E R A L R E S E R V E B U L L E T I N 5 1 ( 1 9 8 5 ) ; Bank
Corporation,
Bancorporation,
of
71 FEDERAL RESERVE BULLETIN 55 ( 1 9 8 5 ) ;
71 FEDERAL RESERVE BULLETIN 61 (1985).
Boston
Suburban
Legal Developments
sons stated in the B o a r d ' s previous orders, the Board
continues to believe that Congressional action to close
the nonbank bank loophole is imperative. In approving
this application, therefore, the Board does not encourage Applicant to c o n s u m m a t e this proposal.
Based on the foregoing and all the facts of record,
the Board has determined that the balance of public
interest factors it is required to consider under section
4(c)(8) is favorable. Accordingly, the application is
hereby approved.
Applicant has also applied for approval under section 9 of the Federal Reserve Act, 12 U . S . C . § 321
et seq., and section 208.4 of Regulation H , 12 C . F . R .
§ 208.4, for Bank to b e c o m e a member of the Federal
Reserve System. Bank appears to meet all the criteria
for admission to membership, including capital requirements and considerations related to management
character and quality. Accordingly, B a n k ' s membership application is approved.
If this proposal is c o n s u m m a t e d , it shall be subject
to the conditions set forth in this Order with respect to
avoiding operation of an integrated institution and the
conditions set forth in the B o a r d ' s Regulation Y,
including those in sections 225.4(d) and 225.23(b). The
approval is also subject to the B o a r d ' s authority to
require modification or termination of the activities of
the holding c o m p a n y or any of its subsidiaries as the
Board finds necessary to assure compliance with the
provisions and purposes of the Act and the B o a r d ' s
regulations and orders issued thereunder, or to prevent evasion thereof. In accordance with the provisions of section 225.23(b)(l)(iii) of Regulation Y, the
B o a r d ' s approval would be required for additional
acquisitions by Applicant of nonbank banks or for the
establishment of offices of Bank to be located outside
the State of N e w York.
By order of the Board of Governors, effective
December 19, 1984.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Rice, Gramley, and Seger.
JAMES M C A F E E
Associate
[SEAL]
Secretary
of the Board
The Sanwa Bank Limited
Osaka, Japan
Order Approving
Companies
the Acquisition
of
Nonbanking
The Sanwa Bank Limited, Osaka, Japan, a registered
bank holding company within the meaning of the Bank
Holding Company Act ( " A c t " ) , has applied for the
B o a r d ' s approval under section 4(c)(8) of the Act
117
(12 U . S . C . § 1843(c)(8)) to acquire f r o m Continental
Illinois Corporation, Chicago, Illinois, the shares of
Cobak Corporation, Chicago, Illinois, and Continental
Illinois Leasing Corporation, Chicago, Illinois, and its
wholly owned subsidiaries, CI Leasing Corporation,
CI General Equipment Leasing Corporation, and CI
Transportation Leasing Corporation (collectively,
" C o m p a n i e s " ) and, through Companies, to engage in
leasing real and personal property, and commercial
financing and servicing activities primarily related to
permissible leasing activities. These activities have
been determined by the Board to be closely related to
banking and therefore permissible for bank holding
companies under the B o a r d ' s Regulation Y (12 C . F . R .
§§ 225.25(b)(1) and (5)).
Notice of the application, affording opportunity for
interested persons to submit c o m m e n t s , has been duly
published in the Federal Register (49 Federal
Register
46,198 (1984)). The time for filing c o m m e n t s has
expired, and the Board has considered the application
and all comments received in light of the factors set
forth in section 4(c)(8) of the Act.
Applicant, with consolidated assets of approximately $106 billion, is the fifth largest commercial banking
institution in Japan and the ninth largest commercial
banking institution in the world. 1 Applicant is a registered bank holding c o m p a n y by virtue of its ownership
of Golden State Sanwa Bank, San Francisco, California, which holds approximately $1.3 billion in total
assets. Applicant also operates branches in N e w York
and Chicago, an agency in San Francisco, and a
representative office in H o u s t o n .
Companies, with total assets of approximately
$647.1 million, are wholly owned subsidiaries of Continental Illinois Corporation, and are engaged nationwide in the activities listed above through offices in
Chicago, Illinois; Dallas, Texas; N e w York, N e w
York; L o s Angeles, California; San Francisco, California; Boston, Massachusetts; and Atlanta, Georgia.
In every case involving an acquisition by a bank
holding company under section 4 of the Act, the Board
considers the effect of the acquisition on the financial
condition and resources of the applicant. In acting on
recent applications by foreign banks to acquire or
expand banking or nonbanking operations in the United States, the Board has stated that these proposals
raise the general question of whether the capital standards applicable to domestic bank holding companies
should also be applied to foreign banking organizations
making acquisitions in the United States. 2 This ques-
1. Banking data for Applicant are as of March 31, 1984. All other
banking data are as of September 30, 1984.
2. See, e.g., The Mitsubishi Bank, Limited, 70 FEDERAL RESERVE
B U L L E T I N 5 1 8 ( 1 9 8 4 ) ; a n d Bank
BULLETIN 664 (1984).
of Montreal,
7 0 FEDERAL RESERVE
118
Federal Reserve Bulletin • February 1985
tion presents a n u m b e r of complex issues that the
Board believes require careful consideration. In this
regard, the Board has initiated and is pursuing consultations with foreign bank supervisors on appropriate
capital standards for banks that operate internationally.
In evaluating this application, the Board noted that
the primary capital ratio of Applicant, as publicly
reported, is well below the capital guidelines for U.S.
multinational bank holding companies. H o w e v e r , after
reviewing all the facts of record relating to the overall
financial condition of Applicant and its U . S . banking
operations, including the fact that Applicant is in
compliance with the capital and other financial requirements of the appropriate supervisory authorities
in Japan, that Applicant has a satisfactory record of
operation in its local markets, a strong liquidity position, and a substantial portfolio of securities of publicly held Japanese companies that are carried on Applic a n t ' s books at cost, which is substantially below their
current market value, and other facts of record, the
Board has determined that the financial factors relating to this application are consistent with approval.
Applicant engages in the United States in commercial finance, servicing, and leasing activities. In each
of these cases, Applicant's and Companies' overlapping market share is insignificant in comparison with
the total market volume. Moreover, there are a large
number of competitors in each of these markets, and
the elimination of Applicant or Company as a competitor would not have any significant adverse effects on
competitors. Accordingly, the Board has determined
that consummation of the proposal would not result in
significant adverse effects on existing or potential
competition in any relevant market.
The Board notes that affiliation with Applicant will
provide financial strength to Companies. Moreover,
there is no evidence in the record to indicate that
approval of this proposal would result in u n d u e concentration of resources, decreased or unfair competition, conflicts of interest, u n s o u n d banking practices,
or other effects adverse to the public interest. Accordingly, the Board has determined that considerations
relating to the public interest factors under section 4 of
the Act are consistent with approval of this application.
Based on the foregoing and all the facts of record,
the Board has determined that the application should
be and hereby is approved. This determination is
subject to the conditions set forth in section 225.4(d) of
Regulation Y, and the B o a r d ' s authority to require
such modification or termination of the activities of a
holding c o m p a n y or any of its subsidiaries as the
Board finds necessary to assure compliance with, or to
prevent evasions of, the provisions and purposes of
the Act and the B o a r d ' s regulations and orders issued
thereunder. The proposed transaction shall be consummated not later than three months after the effective date of this Order, unless such period is extended
for good cause by the Board or by the Federal Reserve
Bank of San Francisco, acting pursuant to delegated
authority.
By order of the Board of Governors, effective
December 18, 1984.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Gramley, and Seger. Voting against
this action: Governor Rice.
WILLIAM W .
Secretary
[SEAL]
Dissenting
Statement
by Governor
of the
WILES
Board
Rice
Because this case raises the same questions as were
raised in the application previously considered by the
Board regarding the acquisition by The Mitsubishi
Bank, Limited, of BanCal Tri-State Corporation, San
Francisco, California (70 F E D E R A L R E S E R V E B U L L E TIN 518 (1984)), I dissent for the reasons explained in
my dissent in that case. I believe that the principles of
competitive equality and national treatment require
that foreign banking organizations that have applied to
acquire a domestic c o m p a n y be judged against comparable financial standards, including the B o a r d ' s capital
adequacy guidelines, as would be applicable to domestic banking organizations.
Accordingly, I would deny this application.
D e c e m b e r 18, 1984
Security Pacific Corporation
Los Angeles, California
Order Approving
Phelps, Inc.
Application
to Acquire Duff &
Security Pacific Corporation, L o s Angeles, California,
a bank holding c o m p a n y within the meaning of the
Bank Holding C o m p a n y Act of 1956 ( " A c t " ) , has
applied for the B o a r d ' s approval pursuant to section
4(c)(8) of that Act (12 U . S . C . § 1843(c)(8)) and section
225.21(a) of the B o a r d ' s Regulation Y (12 C . F . R .
§ 225.21(a)) to acquire 100 percent of the voting shares
of Duff & Phelps, Inc., Chicago, Illinois ( " C o m p a n y " ) , which engages in investment advisory, investment management, and financial advisory activities.
Notice of the application, affording interested persons an opportunity to submit c o m m e n t s , has been
duly published (49 Federal Register 30,795 (1984)).
The time for filing c o m m e n t s has expired, and the
Legal Developments
Board has considered the application and all comments received, including the comments submitted by
the Dealer Bank Association and Fitch Investors Service, Inc., in light of the factors set forth in section
4(c)(8) of the Act.
Company engages in the following nonbanking activities:
(1) investment research and advice regarding utilities, industrial firms, financial organizations, and
technological and energy companies;
(2) investment management services;
(3) financial feasibility studies in connection with tax
exempt revenue bond issues;
(4) financial feasibility studies for specific projects
of private corporations;
(5) valuations of companies and of large blocks of
stock for a variety of purposes;
(6) expert witness testimony on behalf of utility
companies in rate cases; and
(7) credit ratings on bonds, preferred stock, and
commercial paper.
Activities (1), (2) and (3) have been determined by
the Board to be closely related to banking and permissible for bank holding companies. (12 C.F.R.
§ 225.25(b)(4)). Activities (4)-(7), which are described
in greater detail below, have not been considered
previously by the Board.
Applicant is a bank holding company by virtue of its
control of Security Pacific National Bank, Los Angeles, California. With total assets of approximately $43
billion as of September 30, 1984, Applicant is the
second largest banking organization in California.
Through its subsidiaries, Applicant engages in various
permissible nonbanking activities.
Permissibility of Activities (4)-(7)
Activity (4)—Financial Feasibility
Studies
In providing financial feasibility studies for private
corporations, Company evaluates all financial aspects
of a particular project, including economic conditions,
sales and earnings statements, balance sheets, and
cash flow data. When Company is retained for such
studies, its assignment is to analyze and project the
income to be generated by a project. 1 Applicant contends that this activity is authorized by section
1. The financial feasibility studies offered by Company differ significantly from the general management consulting services previously
prohibited by the Board, 12 C . F . R . § 225.25(b)(4)(iv) n.i. Company
does not assist management of a client in the planning, marketing, or
research for a given project or otherwise provide general operational
and managerial advice, and such studies are not provided on a
continuing basis. On the contrary, Company restricts its analysis
entirely to the financial aspects of a single project.
119
225.25(b)(4)(iv) of Regulation Y, which permits a bank
holding company to act as investment or financial
advisor by "furnishing general economic information
and advice, general economic statistical forecasting
services, and industry studies." The Board, however,
believes that the proposed financial feasibility studies
cannot be considered to constitute the provision of
"general economic information and advice," because
the studies apply analysis of general economic information and specific financial data to a particular
corporate project.
Applicant also asserts that if providing financial
feasibility studies is not an activity presently permitted
under Regulation Y, it is nevertheless an activity " s o
closely related to banking as to be a proper incident
thereto" and is thus permissible under section 4(c)(8)
of the Act. The Board believes this activity to be
functionally very similar to the financial advice traditionally offered by banks to their commercial lending
customers. In providing a financial feasibility study,
Company analyzes and values the potential income
stream from a project—analysis that a bank engaged in
project financing must complete on a routine basis.
Furthermore, Applicant has provided evidence that
certain major banks provide customers with similar
financial feasibility analyses under a variety of names,
including capital expenditure analysis and capital budgeting. Upon consideration of the entire record, including the comment submitted by the Dealer Bank
Association, the Board has determined that the provision of financial feasibility studies for corporations is
closely related to banking.
Section 4(c)(8) of the Act, however, also requires
the Board to consider whether the performance of an
activity " c a n reasonably be expected to produce benefits to the public, such as greater convenience, increased competition, or gains in efficiency, that outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking
practices."
With regard to public benefits factors, a danger of
conflicts of interest arises from the affiliation of Applicant's credit extending subsidiaries and Company as
an advisor regarding the financial feasibility of capital
investments.
The Board believes that concerns regarding conflicts of interest and related adverse effects that may
be associated with financial feasibility studies can be
substantially mitigated through the imposition of conditions designed to prevent such adverse effects. The
Board finds that appropriate conditions to mitigate
such adverse effects are as follows:
(1) that Company not make available to Applicant or
any of its subsidiaries confidential information received from Company's clients;
120
Federal Reserve Bulletin • February 1985
(2) that disclosure is made to each potential customer of Company that Company is an affiliate of
Applicant;
(3) that advice is rendered by Company on an
explicit fee basis without regard to correspondent
balances maintained by a customer of Company at
any depository institution subsidiary of Applicant;
and
(4) that Company's financial advisory activities shall
not encompass the performance of routine tasks or
operations for a customer on a daily or continuous
basis.
Activity (5)—Valuation
Services
This activity includes the following services:
(1) the valuation of a company for purposes of
acquisitions, mergers, and divestitures;
(2) tender offer evaluations;
(3) advice for management or for a bankruptcy
court on the viability and capital adequacy of financially troubled companies and on the fairness of
bankruptcy reorganizations;
(4) valuation opinions on transactions in publicly
held securities;
(5) valuations on the fair market value of employee
stock ownership trusts;
(6) periodic valuation of stock of privately owned
companies held in pension or profit-sharing plans,
charitable trusts, or venture capital funds;
(7) the valuation of a privately owned company, or
of a large block of publicly owned securities, for
estate tax purposes; and
(8) for estate tax purposes, valuations of a company's common stock and other securities for recapitalization of a privately held company.
Company also provides expert witness testimony in
support of the above valuations.
Upon consideration of the entire record, the Board
has determined that the activity of providing valuations of companies, as well as the expert witness
testimony incidental to such valuations, is closely
related to banking. The commercial lending and trust
departments of banks commonly make valuations of a
broad range of tangible and intangible property, including the securities of closely held companies. Further, Applicant has provided evidence that numerous
banks compete directly with Company in offering
corporate valuations for a fee.
The Board also has considered whether adverse
effects such as conflicts of interest or unsound banking
practices may be associated with the conduct of corporate valuation activities by a bank holding company
subsidiary and has determined that no significant
adverse effects would result from the Board's approval
of these activities.
Activity (6)—Utility Rate
Testimony
Company frequently provides expert witness testimony on behalf of utility firms in rate cases. Company's
personnel are retained to give expert testimony on
financial matters such as the cost of capital, economic
conditions, and the rate of return expected by investors in utility securities. Expert testimony on these
matters is based on Company's continuing analysis of
the utility industry on behalf of its investment research
clients.
The Board believes that to a large degree this
activity may be considered incidental to Company's
provision of general economic information and advice,
which is permissible under section 225.25(b)(4)(iv) of
Regulation Y. To the extent such rate testimony is not
incidental to Company's permissible activities, the
Board concludes that it is closely related to banking, in
that banks routinely calculate the cost of capital for
customers in order to advise them regarding financing
alternatives. In addition, the Board has determined
that no adverse effects would result from its approval
of Applicant's proposal to provide this service. 2
Activity (7)—Credit
Ratings
Company provides credit ratings on bonds, preferred
stock, and commercial paper. " P r i v a t e " credit ratings
are included as part of the investment research reports
sold to institutional investors. In addition, Company
provides " p u b l i c " credit ratings, on a fee basis, for
companies that request public disclosure. As part of
the public rating process, the rated company is given
the opportunity to make a presentation to Company's
Credit Rating Committee.
Applicant argues that public credit rating activities
are the subset of the activity of providing portfolio
investment advice, an activity which is authorized by
section 225.25(b)(4)(iii) of Regulation Y, in that public
credit rating involves securities investment research,
analysis, and recommendations on investment. While
there is a reasonable basis for a determination that the
activity of providing credit ratings does appear to be
similar to activities banks generally provide for themselves as part of the analysis of creditworthiness, the
Board has not found it necessary to make a determination on this point since even if the activity were closely
2. There is some potential for conflicts of interest between the
provision of expert witness testimony and Applicant's commercial
lending activities to the extent that Applicant may have loans outstanding to the utility involved. Expert witness testimony is usually
subject to cross examination, however, and thus the Board does not
regard this potential conflict as significant.
Legal Developments
related to banking, the Board does not believe that it
meets the public benefits test which the Board is
required to consider under section 4(c)(8).
As noted above, this section requires an evaluation
of whether the performance of an activity " c a n reasonably be expected to produce benefits to the public
. . . that outweigh possible adverse effects such as . . .
conflicts of interest." The Board believes that whatever public benefits may be derived from strengthening
the competitive position of Company through expansion of the resources available to it through association
with Applicant, these benefits are clearly outweighed
by the potential conflicts of interest that seem inherent
in the proposed acquisition. Company provides credit
ratings for many of the largest businesses in this
country and in the future expects to provide ratings for
numerous municipal bond issues as well. Applicant,
on the other hand, is one of the largest banks in this
country and is a significant lender to many of these
same customers.
In this situation, Applicant has a vested interest in
the ratings of corporations to which it lends, in the
ratings of the municipal bonds it underwrites, in the
ratings of the commercial paper and municipal bonds
for which it provides back-up lines of credit, and in the
ratings of fixed-income securities which it holds or
trades. Examples of possible conflicts include the
release to Applicant of confidential information obtained during the credit rating process, the advance
release to Applicant of credit ratings for companies to
which Applicant has very large credits outstanding,
the potential for pressures by Applicant on Company
to modify favorably the credit rating of one of Applicant's major customers, and the subtle pressure on
Company's staff resulting from ownership by Applicant, which might cause Company to temper its judgments about companies in which Applicant has a
substantial interest. Similar conflicts may also arise
between Company's credit rating function and Applicant's investment of trust assets.
Applicant acknowledges the potential conflicts but
argues that various steps can be taken to ameliorate
them and bring them within a manageable framework.
To this end, Applicant has proposed a number of
techniques for isolating the credit rating activities of
Company from influence by the Applicant, including
the establishment of a separate corporation with a
number of independent directors, a prohibition on
contacts between Applicant and the members of Company's credit rating committee, and certain regard
keeping requirements for that committee.
The Board has considered these positive suggestions as well as others to assure full disclosure of
relationships between Applicant and any of the companies rated by Company as well as a prohibition on
121
Company rating Applicant's securities, securities
which Applicant has underwritten, or securities for
which Applicant has provided a guarantee or back-up
letter of credit. However, the Board believes that the
conflicts in the relationship between a major lender
and a credit rating company are so pervasive they
cannot be overcome through the adoption of a "Chinese wall." The employees of Company will inevitably
be aware of interests of Applicant in firms being rated
by them and, it seems reasonable to assume that this
knowledge may, at times, have some influence over
their decisions.
The Board finds these considerations to be of particular concern in the context of the credit rating industry, which now has relatively few participants. There
are significant barriers to successful entry into this
activity, including the requirement for a large and
credible investment research operation to support the
credit rating process, that are likely, as a practical
matter, to continue to limit the size of the industry to a
relatively few companies. It thus appears to be particularly unwise to establish a precedent under which one
or more credit rating firms would be affiliated with
major lenders.
The Board's concerns regarding conflicts of interest
with respect to the credit rating activity are not based
on any doubts regarding the integrity of the parties to
this application, but rather are based on the Board's
responsibility to assess the possible adverse effects
that may be associated with an affiliation between a
bank holding company and a public credit rating
organization. Thus, the Board is acting in furtherance
of one of the general purposes of the Bank Holding
Company Act, which is " t o prevent possible future
problems rather than to solve existing o n e s . " 3
Accordingly, in view of the pervasive conflicts of
interest between Applicant's existing operations and
Company's credit ratings business, the Board has
determined not to approve the performance of public
credit ratings. 4
General Considerations Regarding Acquisition of
Company
With regard to financial factors, the Board notes that
Applicant would fund this acquisition entirely with
3. S. Rep. No. 91-1084, 91st Cong. 2d Sess. 4 (1970).
4. The potential for conflicts of interest associated with the provision of financial feasibility studies is not as pervasive or acute as is the
case with public credit ratings. As noted above, the financial feasibility studies provided by Company are quite limited in scope, and this
activity constitutes only a minor portion of Company's operations. In
addition, the provision of such studies generally does not have the
potential for market-wide effects that are associated with the provision
of a service such as public credit ratings. Finally, the market for the
provision of financial feasibility studies does not exhibit the high level
of concentration that characterizes the public credit ratings market.
122
Federal Reserve Bulletin • February 1985
debt, which would be reflected by an almost equal
increase in the amount of intangibles included in
Applicant's capital. The Board views with concern
any proposal involving a m a j o r debt-financed acquisition that reduces a bank holding c o m p a n y ' s tangible
primary capital and could adversely affect its ability to
serve as a source of strength to its subsidiaries. In this
case, the increase in debt would be small relative to
the size of Applicant's total capital, its tangible primary capital would remain above the B o a r d ' s existing
and proposed Capital Guidelines, and its overall capitalization would remain in Zone 1 under those Guidelines. Accordingly, the Board concludes that the financial and managerial resources of Applicant are
consistent with approval.
With regard to competitive issues, Applicant and
Company are both engaged in the provision of investment advice and investment management (activities
(1) and (2)). The a m o u n t of direct competition between
them is minimal, h o w e v e r , since the market for these
services is characterized by a large number of competitors and neither Applicant nor Company holds a
significant share of the relevant market. Applicant
does not offer the remainder of the services provided
by Company except as an incident to Applicant's other
business activities, and does not appear to be a likely
de novo entrant in these markets. Accordingly, the
Board concludes that consummation of the proposed
transaction would not have a significant impact on
existing or potential competition. There is no evidence
in the record to indicate that consummation of the
proposal would result in other adverse effects on the
public interest.
The Board finds that with the exception of the credit
rating portion of C o m p a n y ' s business, consummation
of this proposal may reasonably be expected to result
in public benefits. Applicant proposes to strengthen
Company and expand the products that it offers. F o r
example, Applicant plans to offer new methods of
distributing C o m p a n y ' s research through time-sharing
computers.
Based on the foregoing analysis and all the facts of
record, the Board has determined that the balance of
the public interest factors it is required to consider
under section 4(c)(8) of the Act is favorable. Accordingly, the application, with the exception of the provision of public credit ratings, should be and hereby is
approved. This determination is subject to the conditions set forth in this Order for the avoidance of
conflicts of interest and the conditions set forth in the
B o a r d ' s Regulation Y, including those in sections
225.4(d) and 225.23(b)(3). T h e approval is also subject
to the B o a r d ' s authority to require such modification
or termination of the activities of a bank holding
company or any of its subsidiaries as the Board finds
necessary to assure compliance with the provisions
and purposes of the Act and the B o a r d ' s regulations
and orders issued thereunder, or to prevent evasion
thereof.
The proposed activities shall be c o m m e n c e d not
later than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board, or by the Federal R e s e r v e Bank of
San Francisco pursuant to delegated authority.
By order of the Board of G o v e r n o r s , effective
December 26, 1984.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Rice, Gramley, and Seger.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the
Board
Orders Issued Under Sections 3 and 4 of Bank
Holding Company Act
Boatmen's Bancshares, Inc.
St. Louis, Missouri
Order Approving the Merger of Bank Holding
Companies and the Acquisition of a Company
Engaged in Insurance
Activities
B o a t m e n ' s Bancshares, Inc., St. Louis, Missouri, a
bank holding c o m p a n y within the meaning of the Bank
Holding Company Act ( " A c t " ) , has applied for the
Board's approval under section 3 of the Act
(12 U . S . C . § 1842) to acquire CharterCorp, Kansas
City, Missouri, and thereby indirectly acquire its 27
subsidiary banks. 1 In connection with this application,
Applicant also has applied to establish BBI Bancshares, St. Louis, Missouri, which will become a bank
holding company by merging with CharterCorp.
1. The banks to be acquired are as follows: First National Bank of
Kansas City, Kansas City; C h a r t e r B a n k , St. Louis N . A . , St. Louis;
CharterBank Webster Groves Trust C o m p a n y , Webster Groves;
CharterBank of Jennings, Jennings; CharterBank of Carthage, Carthage; CharterBank of Ward Parkway N . A . , Kansas City; CharterBank Springfield N . A . , Springfield; CharterBank L e e ' s Summit,
L e e ' s Summit; CharterBank Aurora, Aurora; CharterBank of Overland, Overland; CharterBank Cassville N . A . , Cassville; CharterBank
Butler, Butler; Livestock National Bank, K a n s a s City; CharterBank
Independence, Independence; CharterBank Marshall, Marshall;
CharterBank DeSoto, DeSoto; CharterBank of L a d u e , L a d u e ; CharterBank Belton, Belton; CharterBank L e b a n o n N . A . , L e b a n o n ; CharterBank Clinton, Clinton; CharterBank Excelsior Springs, Excelsior
Springs; CharterBank Lexington, Lexington; CharterBank Boonville
N . A . , Boonville; CharterBank Richmond N . A . , Richmond; CharterBank L o c k w o o d , L o c k w o o d ; CharterBank N e v a d a , N e v a d a ; and
CharterBank Raytown, Raytown, all located in Missouri.
Legal Developments
Applicant also has applied for the Board's approval
under section 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)) and section 225.23(a)(2) of the Board's
Regulation Y (12 C.F.R. § 225.23(a)(2)), to acquire
Charter Bankers Life Insurance Company, Kansas
City, Missouri, a company engaged in the reinsurance
of credit-related insurance directly related to extensions of credit by subsidiaries of CharterCorp. This
activity has been determined by the Board to be
closely related to banking and permissible for bank
holding companies. (12 C.F.R. §§ 225.23(b)(9)).
Notice of the applications, affording opportunity for
interested persons to submit comments, has been
given in accordance with sections 3 and 4 of the Act
(49 Federal Register 38,989 (1984)). The time for filing
comments has expired, and the Board has considered
the applications and all comments received in light of
the factors set forth in section 3(c) of the Act
(12 U.S.C. § 1842(c)) and the considerations specified
in section 4(c)(8) of the Act.
Applicant is the fourth largest commercial banking
organization in Missouri with 18 subsidiary banks that
control aggregate deposits of $2.5 billion, representing
7.1 percent of total deposits in commercial banks in
the state. 2 CharterCorp is the fifth largest commercial
banking organization in the state, with 27 banking
subsidiaries that control aggregate deposits of $2.2
billion, representing 6.5 percent of total deposits in
commercial banks in the state.
Upon consummation of the proposed acquisition,
Applicant's share of total deposits in commercial
banks in the state would increase to approximately
13.6 percent, and Applicant would become the largest
commercial banking organization in the state.
Although the Board is concerned about the effect of
this merger of the fourth and fifth largest commercial
banking organizations in Missouri on the concentration of banking resources within the state, certain
conditions existing after the proposed merger mitigate
that concern. A number of other large multibank
holding companies that are active throughout the state
would remain upon consummation of this proposal. In
addition, Missouri would remain moderately concentrated in terms of banking resources, with the share of
the commercial bank deposits held by the four largest
commercial banking organizations in Missouri increasing from 38.5 percent to 45 percent. Accordingly, it is
the Board's view that consummation of this acquisition would not have any significantly adverse effects
on the concentration of commercial banking resources
in Missouri. 3
Applicant's subsidiary banks compete directly with
CharterCorp's subsidiary banks in three banking markets: the Springfield, St. Louis, and Kansas City
banking markets.
In the Springfield banking market, 4 Applicant is the
second largest commercial banking organization with
total deposits of $261.4 million, representing 23.4
percent of the deposits in commercial banks in the
market. CharterCorp is the sixth largest commercial
banking organization with $67.2 million in deposits,
representing 6 percent of total deposits in commercial
banks in the market. After consummation of the
proposal, Applicant would control approximately 29.4
percent of the deposits in commercial banks in the
market.
The Springfield banking market is considered to be
moderately concentrated, with the four largest commercial banks controlling 68.9 percent of the deposits
in commercial banks in the market. 5 Although consummation of this proposal would eliminate some
existing competition between Applicant and CharterCorp in the Springfield market, numerous other commercial banking organizations would remain as competitors after consummation of the proposal. In
addition, the presence of eight thrift institutions mitigates the competitive effects of the transaction. 6 These
institutions hold combined deposits of $735.1 million,
or approximately 40 percent of total deposits in the
market. Moreover, two of the four largest institutions
in the market are thrift institutions. Thrift institutions
already exert a considerable competitive influence in
the market as providers of NOW accounts and con-
3. Missouri law prohibits a bank holding company from obtaining
control of another bank if the total deposits held by the bank holding
company (exclusive of certificates of deposit with a face amount of
$100,000 or more, deposits from foreign sources and deposits of all
other banks not controlled by the bank holding company) would result
in a market share exceeding 13 percent. Mo. Ann. Stat. § 362.915
(Vernon Supp. 1984). A f t e r excluding excludable deposits, Applicant's market share after consummation of the proposal would be
approximately 12 percent.
4. The Springfield banking market is approximated by the Springfield RMA.
5. The Herfindahl-Hirshman Index ( " H H I " ) in the market is 1563
and would increase by 283 points to 1846 upon consummation of the
proposal. Under the revised Department of Justice Merger Guidelines
(49 Federal Register 26,823 (1984)), a market in which the post-merger
HHI is over 1800 is considered highly concentrated. In such markets,
the Department is likely to challenge a merger that produces an
increase in the H H I of more than 50 points.
6. The Board has previously indicated that thrift institutions have
become, or have the potential to become, major competitors of
commercial banks. National City Corporation, 70 FEDERAL RESERVE
B U L L E T I N 7 4 3 ( 1 9 8 4 ) : NCNB
2. Unless otherwise indicated, deposit data are as of June 30, 1984,
and reflect bank holding company acquisitions approved through
October 15, 1984.
123
Bancorporation,
7 0 FEDERAL RESERVE
BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL
RESERVE BULLETIN 802 (1983); First Tennessee National
Corporation,
69 FEDERAL RESERVE BULLETIN 298 (1983).
124
Federal Reserve Bulletin • February 1985
sumer loans. In addition, some of the thrift institutions
are engaged in the business of making commercial
loans and are providing an alternative for such services in the Springfield market. Accordingly, based
upon the foregoing, the Board has concluded that the
effects of the proposal on competition in the Springfield market would not be substantially adverse. 7
In the St. Louis banking market, Applicant is the
fourth largest commercial banking organization, with
deposits of $1.5 billion, representing approximately
9.8 percent of the total deposits in commercial banks
in the market. 8 CharterCorp is the ninth largest commercial banking organization with deposits of $527.7
million, representing approximately 3.4 percent of the
total deposits in commercial banks in the market.
Upon consummation of the proposal, Applicant would
become the third largest commercial banking organization in the market and control approximately 13.2
percent of the total deposits in commercial banks in
the market. This market has a four-firm concentration
ratio of 49.6 percent and is not considered concentrated. 9 Moreover, numerous other commercial banking
organizations would remain in the market after consummation of the proposal. Accordingly, the effects of
the proposal on competition in the St. Louis market
are not regarded as substantially adverse.
In the Kansas City banking market, 1 0 Applicant is
the sixth largest commercial banking organization with
deposits of $413.1 million, representing 4.2 percent of
total deposits in commercial banks in the market.
CharterCorp is the third largest commercial banking
organization in the market with deposits of $1.1 billion, representing 11.5 percent of the total deposits in
commercial banks in the market. Upon consummation, Applicant would become the largest commercial
banking organization in the market and its market
share would increase to 15.6 percent. The Kansas City
banking market is unconcentrated with a four-firm
7. If 50 percent of deposits held by thrift institutions in the
Springfield banking market were included in the calculation of market
concentration, the share of total deposits held by the four largest
organizations in the market (two of which are thrift institutions) would
be 58.2 percent. Applicant would control 17.6 percent of the market's
deposits and CharterCorp would control 4.5 percent of the market's
deposits. The H H I would increase by 160 points to 1183.
8. The St. Louis market is approximated by the St. Louis RMA,
adjusted to include all of St. Charles and Jefferson Counties, Missouri,
and all of Lebanon and Mascoutah townships in St. Clair County,
Illinois.
9. The HHI in the market is 748 and would increase to 815 upon
consummation of the proposal. Under the revised Department of
Justice Merger Guidelines, a market in which the post-merger H H I is
under 1000 is considered unconcentrated. In such markets, the
Department will not challenge a merger except in extraordinary
circumstances.
10. The Kansas City banking market is approximated by the
Kansas City RMA.
concentration ratio of 47 percent. 1 1 Moreover, numerous commercial banking alternatives would remain in
the market after consummation of this proposal. Accordingly, the Board has concluded that the effects of
the proposal on competition in the Kansas City market
would not be substantially adverse.
The Board has considered the effects of this proposal on probable future competition in the 17 markets in
which Applicant and CharterCorp do not compete
directly. In none of these markets would the proposed
merger require intensive analysis under the Board's
proposed Guidelines. 12 After consideration of these
factors in the context of the specific facts of this case,
the Board concludes that consummation of this proposal would not have any significant adverse effects on
probable future competition in any relevant market.
The financial and managerial resources of Applicant, CharterCorp and their subsidiaries are regarded
as generally satisfactory. Although Applicant will incur some debt as a result of this transaction, this
transaction will be accomplished primarily by an exchange of Applicant's shares for CharterCorp shares.
Upon consummation of this transaction, Applicant's
primary and total capital ratios will meet both the
Board's current and proposed Capital Adequacy
Guidelines. 13 Accordingly, considerations relating to
banking factors are consistent with approval. Consummation of this proposal will provide CharterCorp's
customers with access to a nationwide automatic teller
machine service and more advanced cash management
services. Accordingly, considerations relating to the
convenience and needs of the communities to be
served also are consistent with approval of the application.
Applicant also has applied, pursuant to section
4(c)(8) of the Act, to acquire Charter Bankers Life
Insurance Company, Kansas City, Missouri ("Company"), a wholly owned subsidiary of CharterCorp,
which engages in the reinsurance of credit-related
insurance made by CharterCorp's subsidiaries. Although Applicant currently engages in the reinsurance
of credit-related insurance, no adverse competitive
effect would result from this acquisition because the
11. The H H I in the market is 662 and would increase by only 96
points to 758 as a result of the proposal.
12. "Policy Statement of the Board of Governors of the Federal
Reserve System for Assessing Competitive Factors Under the Bank
Merger Act and the Bank Holding Company A c t , " 47 Federal
Register 9017 (1982). While the proposed policy statement has not
been adopted by the Board, the Board is using the policy guidelines as
part of its analysis of the effect of a proposal on probable future
competition.
13. Capital Adequacy Guidelines, 12 C . F . R . , Part 225. Appendix
A; Capital Adequacy Guidelines for Bank Holding Companies,
49
Federal Register 30,322 (1984).
Legal Developments
125
activities of C o m p a n y would be limited to insurance
directly related to extensions of credit made by the
subsidiaries of C h a r t e r C o r p and Applicant. Accordingly, it does not appear that Applicant's acquisition of
Company would have any significant adverse effect
upon existing or potential competition. F u r t h e r m o r e ,
there is no evidence in the record to indicate that
approval of this proposal would result in undue concentration of resources, decreased or unfair competition, conflicts of interests, unsound banking practices
or other adverse effects on the public interest. Accordingly, the Board has determined that the balance of the
public interest factors it must consider under section
4(c)(8) of the Act is favorable and consistent with
approval of the application to acquire C o m p a n y .
Company Act (12 U . S . C . § 1842) for consolidation of
three Louisiana bank holding companies, First Bancshares of Louisiana, Inc., Baton Rouge ( " F B L " ) ,
First National B a n c o r p , Inc., Shreveport ( " F N B " ) ,
and Ouachita National Bancshares, Inc., M o n r o e
( " O N B " ) . Louisiana Bancshares would be the successor corporation f o r m e d through the consolidation of
the three bank holding companies and would thereby
become a bank holding c o m p a n y . Louisiana Bancshares has also applied for the B o a r d ' s approval under
section 4(c)(8) of the Act (12 U . S . C . § 1843(c)(8)) and
section 225.23 of the B o a r d ' s Regulation Y (12 C . F . R .
§ 225.23), to acquire Louisiana National Mortgage
Company, Baton Rouge, Louisiana, which currently is
a mortgage banking subsidiary of F B L .
Based on the foregoing and the facts of record, the
Board has determined that the applications under
sections 3 and 4 of the Act should be and hereby are
approved. The acquisition and merger of CharterCorp
shall not be c o n s u m m a t e d before the thirtieth calendar
day following the effective date of this Order or later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of
St. Louis pursuant to delegated authority. The determinations as to Applicant's nonbanking activities are
subject to the conditions set forth in sections 225.4(d)
and 225.23(b)(3) of Regulation Y (12 C . F . R . § 225.4(d)
and 225.23(b)(3)) and to the B o a r d ' s authority to
require such modification or termination of the activities of a holding company or any of its subsidiaries as
the Board finds necessary to assure compliance with
the provisions and purposes of the Act and the B o a r d ' s
regulations and orders issued thereunder, or to prevent evasion thereof.
Applicant is seeking prior approval to c o n s u m m a t e
the proposed consolidation under recently enacted
Louisiana legislation that permits multibank holding
companies in that state. The new law will permit a
bank holding c o m p a n y to acquire a bank located
outside of the holding c o m p a n y ' s parish if the bank has
been in existence for at least five years. 1
Notice of the applications, affording opportunity for
interested persons to submit c o m m e n t s , has been
given in accordance with sections 3 and 4 of the Act
(49 Federal Register 39,734 (1984)). The time for filing
comments has expired, and the Board has considered
the applications and all c o m m e n t s received in light of
the factors set forth in section 3(c) of the Act
(12 U . S . C . § 1842(c)) and the considerations specified
in section 4(c)(8) of the Act (12 U . S . C . § 1843(c)(8)).
F B L is the fifth largest commercial banking organization in Louisiana. Its subsidiary, Louisiana National
Bank of Baton Rouge, Baton Rouge, Louisiana, holds
total domestic deposits of $858.4 million, representing
3.1 percent of deposits in commercial banks in the
state. 2 F N B , the sixth largest commercial banking
organization in the state, controls The First National
Bank of Shreveport, Shreveport, Louisiana, which
holds total domestic deposits of $827.1 million, representing 3 percent of deposits in commercial banks in
the state. O N B , the thirteenth largest banking organization in the state, controls The Ouachita National
Bank in M o n r o e , M o n r o e , Louisiana, which holds
total domestic deposits of $430.7 million, representing
1.5 percent of deposits in commercial banks in the
state. Upon consummation of the proposed consolidation, Applicant would b e c o m e the largest banking
By order of the Board of Governors, effective
December 11, 1984.
Voting for this action: Vice Chairman Martin and Governors Partee, Rice, and Gramley. Absent and not voting:
Chairman Volcker and Governors Wallich and Seger.
WILLIAM W .
[SEAL]
Secretary
WILES
of the Board
Louisiana Banc shares, Inc.
Baton Rouge, Louisiana
Order Approving Consolidation of Bank Holding
Companies and Acquisition of Nonbanking
Company
Louisiana Bancshares, Inc., Baton Rouge, Louisiana
( " L o u i s i a n a B a n c s h a r e s " ) , has applied for the
B o a r d ' s approval under section 3 of the Bank Holding
1. 1984 Louisiana Acts N o . 50. The legislation provides authorization for the acquisition of de novo banks beginning in 1989.
2. Banking data are as of D e c e m b e r 31, 1983.
126
Federal Reserve Bulletin • February 1985
organization in Louisiana, controlling $2.1 billion in
deposits, or 7.6 percent of deposits in commercial
banks in the state.
The Board has carefully considered the effects of the
proposal on statewide banking structure and upon
competition in the relevant markets. The proposal
involves the combination of sizeable commercial
banking organizations that are leading banking organizations in their respective geographic markets and are
among the leading banking organizations in the state.
However, with respect to statewide concentration of
resources, the Board notes that the state is currently
unconcentrated, with the four largest commercial
banking organizations in the state controlling 18.2
percent of deposits in commercial banks in the state.
Upon consummation, the state would remain unconcentrated, with a four-firm concentration ratio of 22.7
percent.
The banking subsidiaries of FBL, F N B , and ONB
each operate in separate banking markets located in
different areas of the state. 3 Because of state law
restrictions on multiparish banking, these banking
organizations heretofore have been prohibited from
branching or acquiring subsidiary banks in one another's markets. Accordingly, consummation of the proposal would not eliminate significant existing competition in any relevant market.
The Board has also examined the effect of the
proposed consolidation of F B L , FNB, and ONB on
probable future competition in the relevant geographic
markets in light of the Board's probable future competition guidelines. 4 After consideration of these factors
in light of the specific facts of this case, the Board has
concluded that the consummation of this proposal
would not have any significant adverse effects on
probable future competition in any relevant market.
The Baton Rouge and Shreveport markets are not
considered highly concentrated under the Board's
guidelines, and there are numerous potential entrants
into the Monroe banking market.
The financial and managerial resources and future
prospects of FBL, F N B and ONB and their respective
subsidiaries are considered satisfactory. The proposal
involves the consolidation of three bank holding companies through an exchange of shares. N o debt will be
3. F B L operates in the banking market defined as the Baton Rouge
Metropolitan Statistical Area ( " M S A " ) . FNB operates in the banking
market defined as the Shreveport MSA; and O N B operates in the
banking market defined as the Monroe MSA.
4. See "Proposed Policy Statement of the Board of Governors of
the Federal Reserve System for Assessing Competitive Factors Under
the Bank Merger Act and the Bank Holding Company A c t , " 47
Federal Register 9017 (1982). The proposed policy statement has not
been approved by the Board. The Board has applied the criteria set
forth in the proposed policy statement in its analysis of the effects of
proposals on probable future competition.
incurred to effect the proposal, and Applicant's primary and total capital ratios will substantially exceed
the minimum levels specified in the Board's guidelines. Accordingly, the Board finds that banking factors are consistent with approval.
Applicant has stated that the affiliation of these bank
holding companies will permit Applicant to provide
enhanced or specialized services in the areas of electronic banking, investment services, trust services,
correspondent relationships and specialized lending to
a larger number of customers and will enable Applicant to build on the internal product and service
development efforts of the combining organizations.
The Board has determined that considerations relating
to the convenience and needs of the community to be
served are consistent with approval.
Louisiana Bancshares has also applied, pursuant to
section 4(c)(8) of the Act, to acquire Louisiana National Mortgage Company, Baton Rouge, Louisiana
("Company"). Company currently is a subsidiary of
F B L and engages in mortgage banking activities to the
extent permissible for bank holding companies under
section 225.25(b)(1) of Regulation Y (12 C.F.R.
§ 225.25(b)(1)). F N B and ONB currently offer mortgage banking services through their banking subsidiaries. In view of the presence of numerous other suppliers of these services in the region, and the small size of
the market shares involved, the Board concludes that
no significant existing competition would be eliminated by the proposal.
There is no evidence in the record to indicate that
approval of this proposal would result in undue concentration of resources, decreased or unfair competition, conflicts of interest, unsound banking practices
or other adverse effects on the public interest. Accordingly, the Board has determined that the balance of the
public interest factors it must consider under section
4(c)(8) of the Act is consistent with approval of the
application to acquire Company.
Based on the foregoing and the facts of record, the
Board has determined that the applications under
sections 3 and 4 of the Act should be and are hereby
approved. The consolidation shall not be consummated before the thirtieth calendar day following the
effective date of this Order, and neither the subject
consolidation nor the acquisition of Company shall be
made 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
Atlanta, acting pursuant to delegated authority. The
determination with respect to Louisiana Bancshares'
acquisition of Company is subject to all the conditions
set forth in Regulation Y, including sections 225.4(d)
and 225.23(b) (12 C . F . R . §§ 225.4(d) and 225.23(b)),
and to the Board's authority to require such modifica-
Legal Developments
tion or termination of activities of a holding company
or any of its subsidiaries as the Board finds necessary
to assure compliance with the provisions and purposes
of the Act and the B o a r d ' s regulations and orders
issued thereunder, or to prevent evasion thereof.
By order of the Board of Governors, effective
December 11, 1984.
Voting for this action: Vice Chairman Martin and Governors Partee, Rice, and Gramley. Absent and not voting:
Chairman Volcker and Governors Wallich and Seger.
WILLIAM W .
Secretary
[SEAL]
WILES
of the Board
Orders Issued Under Section 5 of Bank Service
Corporation Act
Southeast Bank, N.A.
Miami, Florida
Southeast Credit Insurance Company
Miami, Florida
Order Approving
Corporation
Investment
in a Bank
Service
Southeast Bank, N . A . ( " B a n k " ) , the principal subsidiary of a registered bank holding company, Southeast
Banking Corporation ( " S o u t h e a s t " ) , both of Miami,
Florida, has applied for the B o a r d ' s approval under
section 5(b) of the Bank Service Corporation Act, as
amended ( " B S C A " ) (12 U . S . C . § 1861 et seq.), to
acquire all of the capital stock of a bank service
corporation, Southeast Credit Insurance C o m p a n y ,
Miami, Florida ( " C o m p a n y " ) . 1
In addition, C o m p a n y has applied under section 5(b)
of the B S C A for permission to engage in an activity
that would be permissible for a bank holding company
under section 4(c)(8) of the Bank Holding Company
Act (12 U . S . C . § 1841 et seq.) and section 225.25 of
Regulation Y (12 C . F . R . § 225.25). Company proposes to underwrite, as reinsurer, credit life and credit
accident and health insurance directly related to extensions of credit by the bank holding company system.
Section 4(f) of the B S C A , 12 U . S . C . § 1864(f), provides that a bank service corporation may perform at
any geographic location any service, other than deposit taking, that the Board has determined, by regulation,
to be permissible for a bank holding company under
1. The B S C A defines a " b a n k service c o r p o r a t i o n " as a corporation organized to perform services authorized by this Act, all of the
capital stock of which is owned by one or more insured banks.
127
section 4(c)(8) of the Bank Holding Company Act. 2
Company proposes to engage in insurance underwriting (as reinsurer) to the extent such activities are
generally permissible for bank holding companies in
the B o a r d ' s Regulation Y, 12 C . F . R . § 225.25(b)(9). 3
The activities of C o m p a n y will be conducted at the
offices of Bank and its affiliates located throughout the
state of Florida. As such, Company will serve an area
which is approximated by the service areas of Southeast's banking subsidiaries.
Section 5(c) of the B S C A , 12 U . S . C . § 1865(c),
authorizes the Board, in acting upon applications to
invest in or provide services as a bank service corporation, to consider the financial and managerial resources of the institutions involved, their prospects,
and possible adverse effects, such as undue concentration of resources, unfair or decreased competition,
conflicts of interest, or unsafe or unsound banking
practices. The Board finds that considerations relating
to these factors are consistent with approval and that
there is no evidence of adverse effects.
Accordingly, on the basis of the record, the applications are approved for the reasons summarized above.
This determination is subject to the B o a r d ' s authority
to require such modification or termination of the
activities of a bank service corporation as the Board
finds necessary to assure compliance with the B S C A
or to prevent evasions thereof. 4 The transactions shall
be consummated within three months after the date of
this Order, unless such period is extended for good
cause by the Board or the Federal Reserve Bank of
Atlanta.
By order of the Board of Governors, effective
December 10, 1984.
Voting for this action: Vice Chairman Martin and Governors Partee, Rice, and Gramley. Absent and not voting:
Chairman Volcker and Governors Wallich and Seger.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
2. Under section 4(c)(8) of the Bank Holding Company Act,
12 U . S . C . § 1843(c)(8), a bank holding company may engage in
activities determined by the Board to be closely related to banking and
a proper incident thereto.
3. Section 225.25(b)(9) of Regulation Y authorizes bank holding
companies to underwrite (and hence to reinsure) credit life insurance
and credit accident and health insurance that is directly related to
extensions of credit by the bank holding company system. The
regulation requires that an applicant must offer premium rate reductions or equivalent public benefit in order to engage in this activity.
12 C . F . R . § 225.25(b)(9) n.7. Company has committed to offer the
required rate reductions.
4. In that regard, the Board has sought public comment regarding
the proposed elimination of the rate reduction requirement from this
activity. 48 Federal Register 53,125 (1983). Any final action taken by
the Board with respect to this rule would be applicable to Bank and
Company.
128
Federal Reserve Bulletin • February 1985
ORDERS APPROVED
UNDER BANK HOLDING
COMPANY
ACT
By the Board of Governors
During D e c e m b e r 1984 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
CoBank Financial Corporation,
San Luis Obispo, California
By Federal Reserve
Board action
(effective
date)
Bank
C o m m e r c e Bank of San Luis Obispo,
N.A.,
San Luis Obispo, California
D e c e m b e r 10, 1984
Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders are
available upon request to the Reserve Banks.
Section 3
Applicant
Albert City Bankshares, Inc.,
Albert City, Iowa
Allied Bancshares, Inc.,
Houston, Texas
Allied Bancshares, Inc.,
Thomson, Georgia
American Security Bancshares,
Ville Platte, Louisiana
AmeriCorp, Inc.,
Savannah, Georgia
Ashland Bankshares, Inc.,
Ashland, K e n t u c k y ,
Auburn Financial Corp.,
Auburn, Indiana
BMC Bankcorp, Inc.,
Benton, Kentucky
Campbell Bancshares,
Campbell, California
Caraway Bancshares, Inc.,
Caraway, Arkansas
C B & T Bancshares, Inc.,
Columbus, Georgia
Bank(s)
Albert City Savings Bank,
Albert City, Iowa
Allied Bank Fort Worth,
Fort Worth, Texas
Bank of T h o m s o n ,
Thomson, Georgia
American Security Bank of Ville
Platte,
Ville Platte, Louisiana
AmeriBank, N . A . ,
Savannah, Georgia
Bank of Ashland, Inc.,
Ashland, Kentucky
The Auburn State Bank,
Auburn, Indiana
Graves County Bank, Inc.,
Wingo, Kentucky
Campbell National Bank,
Campbell, California
Caraway Bank,
Caraway, Arkansas
Southwest Georgia Financial
Corporation,
Moultrie, Georgia
Reserve
Bank
Effective
date
Chicago
D e c e m b e r 7, 1984
Dallas
N o v e m b e r 28, 1984
Atlanta
D e c e m b e r 21, 1984
Atlanta
D e c e m b e r 26, 1984
Atlanta
D e c e m b e r 21, 1984
Cleveland
December 3, 1984
Chicago
December 10, 1984
St. Louis
N o v e m b e r 28, 1984
San Francisco
December 10, 1984
St. Louis
N o v e m b e r 28, 1984
Atlanta
D e c e m b e r 18, 1984
Legal Developments
129
Section 3—Continued
Applicant
Central Banc Holding, Inc.,
Balch Springs, Texas
Chase County Bankshares, Inc.,
Strong City, Kansas
Chillicothe State Bancorp, Inc.,
Chillicothe, Illinois
Citadel Bancshares, Inc.,
Conroe, Texas
Citicorp Holdings, Inc.,
Wilmington, Delaware
Citizens Corporation,
Eastman, Georgia
Citizens Western Corporation,
San Diego, California
City National Corporation,
Sylacauga, Alabama
Comerica Incorporated,
Detroit, Michigan
Community Bancorporation,
Inc.,
Greenville, South Carolina
Corpus Christi Bancshares,
Inc.,
Corpus Christi, Texas
Cross County Bancshares, Inc.,
Wynne, Arkansas
Dawson County Bancshares,
Inc.,
Dawsonville, Georgia
Devon Bancorp, Inc.,
Chicago, Illinois
East Ridge Bancshares, Inc.,
East Ridge, Tennessee
East-Tex Bancorp, Inc.,
Trinity, Texas
Equitable Bankshares, Inc.,
Dallas, Texas
Elkhart Financial Company,
Elkhart, Kansas
Bank(s)
Central Banc Corporation,
Balch Springs, Texas
First Bank,
Balch Springs, Texas
Central National Bank,
Dallas, Texas
Chase County Bank,
Strong City, Kansas
Chillicothe State Bank,
Chillicothe, Illinois
Conroe Bank, N.A.,
Conroe, Texas
Willis Bank,
Willis, Texas
Citicorp (Maine)
Portland, Maine
Citibank (Maine), N.A.,
South Portland, Maine
Citizens Bank & Trust Company,
Eastman, Georgia
Citizens Western Bank,
San Diego, California
City National Bank,
Sylacauga, Alabama
Comerica Bank-Grand Rapids,
N.A.,
Grand Rapids, Michigan
Community Bank,
Greenville, South Carolina
Citizens State Bank of Corpus
Christi,
Corpus Christi, Texas
Cross County Bank,
Wynne, Arkansas
Dawson County Bank,
Dawsonville, Georgia
Devon Bank,
Chicago, Illinois
The Bank of East Ridge,
East Ridge, Tennessee
First National Bank of Highlands,
Highlands, Texas
Equitable Bank,
Dallas, Texas
First National Bank of Elkhart,
Elkhart, Kansas
Reserve
Bank
Effective
date
Dallas
November 28, 1984
Kansas City
December 4, 1984
Chicago
December 5, 1984
Dallas
November 30, 1984
New York
December 21, 1984
Atlanta
December 21, 1984
San Francisco
December 5, 1984
Atlanta
December 5, 1984
Chicago
December 18, 1984
Richmond
December 12, 1984
Dallas
December 13, 1984
St. Louis
December 3, 1984
Atlanta
December 11, 1984
Chicago
December 18, 1984
Atlanta
December 4, 1984
Dallas
December 4, 1984
Dallas
December 14, 1984
Kansas City
November 26, 1984
130
Federal Reserve Bulletin • February 1985
Section 3—Continued
Applicant
Executive Bancshares, Inc.,
Houston, Texas
Evans Bancshares, Inc.,
Evansdale, Iowa
Fed Gold, Inc.,
Hulbert, Oklahoma
Financial Services of the
Rockies, Inc.,
Colorado Springs, Colorado
First Banquers Holding
Company,
Kenner, Louisiana
First Beemer Corporation,
Beemer, Nebraska
First Bottineau, Inc.,
Bottineau, North Dakota
First Fontanelle Bancorporation,
Fontanelle, Iowa
First of Groves Corporation,
Groves, Texas
First Western Bancshares, Inc.,
Duncanville, Texas
F N B Banking Company,
Griffin, Georgia
Forrest Bancshares, Inc.,
Forrest, Illinois
Fremont Bank Corporation,
Canon City, Colorado
Galatia Bancorp, Inc.,
Galatia, Illinois
Guaranty Capital Corporation,
Mamou, Louisiana
H & R Bankshares, Inc.,
Charleston, West Virginia
Hamilton County Bancshares,
Inc.,
Webster City, Iowa
Heritage Group, Inc.,
Woodridge, Illinois
Highlands Bankshares, Inc.,
Petersburg, West Virginia
Independent Community Banks,
Inc.,
Winter Park, Florida
Bank(s)
Reserve
Bank
Effective
date
First City National Bank of Paris,
Paris, Texas
First Security State Bank,
Evansdale, Iowa
First State Bank,
Hulbert, Oklahoma
Bank of the Rockies, N.A.,
Colorado Springs, Colorado
Dallas
November 30, 1984
Chicago
December 17, 1984
Kansas City
December 4, 1984
Kansas City
November 28, 1984
Bankers Trust of Louisiana,
Kenner, Louisiana
Atlanta
November 26, 1984
American State Bank,
Homer, Nebraska
First National Bank and Trust
Company,
Bottineau, North Dakota
First National Bank,
Fontanelle, Iowa
Kansas City
December 12, 1984
Minneapolis
November 26, 1984
Chicago
December 11, 1984
First National Bank of Silsbee,
Silsbee, Texas
First Continental National Bank,
Houston, Texas
First Barnesville Corporation,
Barnesville, Georgia
The Heights Bank,
Peoria Heights, Illinois
Centennial Bank of Blende,
Pueblo, Colorado
Galatia Community State Bank,
Galatia, Illinois
Guaranty Bank of Mamou,
Mamou, Louisiana
Bank of Danville,
Danville, West Virginia
Farmers State Bank,
Stanhope, Iowa
Van Diest Financial, Ltd.,
Webster City, Iowa
First State Bank,
Webster City, Iowa
Bank of Lemont,
Lemont, Illinois
The Grant County Bank,
Petersburg, West Virginia
First National Bank, Seminole
County,
Longwood, Florida
Dallas
December 13, 1984
Dallas
November 28, 1984
Atlanta
November 30, 1984
Chicago
November 29, 1984
Kansas City
December 17, 1984
St. Louis
November 28, 1984
Atlanta
December 21, 1984
Richmond
December 20, 1984
Chicago
November 30, 1984
Chicago
December 3, 1984
Richmond
December 17, 1984
Atlanta
December 7, 1984
Legal Developments
131
Section 3—Continued
Applicant
Indiana Bancshares, Inc.,
Bargersville, Indiana
International Business Bancorp,
San Francisco, California
J & M Bancshares, Inc.,
Walton, Kansas
Jackson Bancorp, Inc.,
Jonesboro, Louisiana
Keekins Corporation,
Downers Grove, Illinois
Keene Bancorp, Inc.,
Keene, Texas
Leackco Bank Holding Company, Inc.,
Huron, South Dakota
Lenexa Bancorporation, Inc.,
Lenexa, Kansas
Liberty Financial Services, Inc.,
New Orleans, Louisiana
Lowcountry Bancshares, Inc.,
Vara ville, South Carolina
Malta Bancshares, Inc.,
Malta, Illinois
Mancos Bancorporation, Inc.,
Mancos, Colorado
Marshall Bancshares, Inc.,
Hempstead, Texas
Medina Valley Bancshares,
Inc.,
Devine, Texas
Mid Town Bancorp, Inc.,
Chicago, Illinois
MidSouth Bancshares, Inc.,
Paragould, Arkansas
Minnequa Bancorp, Inc.,
Pueblo, Colorado
National Penn Bancshares, Inc.,
Boyerstown, Pennsylvania
National Penn Bancshares, Inc.,
Boyerstown, Pennsylvania
Northwest Bancshares, Inc.,
Roanoke, Virginia
Bank(s)
The Bargersville State Bank,
Bargersville, Indiana
International Business Bank,
N.A.,
San Francisco, California
Walton Bancshares, Inc.,
Walton, Kansas
Walton State Bank,
Walton, Kansas
Jackson Parish Bank,
Jonesboro, Louisiana
Citizens National Bank of
Downers Grove,
Downers Grove, Illinois
The First National Bank of
Itasca,
Itasca, Texas
American State Bank,
Wessington Springs, South
Dakota
The Lenexa National Bank,
Lenexa, Kansas
Liberty Bank and Trust Company,
New Orleans, Louisiana
The Hampton County Bank,
Varnville, South Carolina
State Bank of Paw Paw,
Paw Paw, Illinois
Mancos State Bank,
Mancos, Colorado
Guaranty Bond State Bank of
Waller,
Waller, Texas
Medina Valley State Bank,
Devine, Texas
Mid Town Bank and Trust Company of Chicago,
Chicago, Illinois
Security Bank,
Paragould, Arkansas
Minnequa Bank of Pueblo,
Pueblo, Colorado
Chestnut Hill National Bank,
Philadelphia, Pennsylvania
National Bank of the Main Line,
Wayne, Pennsylvania
Northwest Bank,
Roanoke, Texas
Reserve
Bank
Effective
date
Chicago
December 14, 1984
San Francisco
December 19, 1984
Kansas City
November 26, 1984
Dallas
December 21, 1984
Chicago
December 4, 1984
Dallas
December 19, 1984
Minneapolis
December 20, 1984
Kansas City
November 30, 1984
Atlanta
December 5, 1984
Richmond
November 26, 1984
Chicago
December 14, 1984
Kansas City
December 5, 1984
Dallas
December 5, 1984
Dallas
November 29, 1984
Chicago
December 18, 1984
St. Louis
November 28, 1984
Kansas City
November 30, 1984
Philadelphia
November 30, 1984
Philadelphia
December 14, 1984
Dallas
November 26, 1984
132
Federal Reserve Bulletin • February 1985
Section 3—Continued
Applicant
O'Donnell Bancshares, Inc.
O'Donnell, Texas
Overton Bancshares, Inc.,
Fort Worth, Texas
Peoples Bancorp, Inc.,
Manchester, Tennessee
Peshtigo Financial Corp.,
Peshtigo, Wisconsin
PTC Financial Corporation,
Peru, Indiana
Republic Financial Corporation,
Wichita, Kansas
Scott County Bancorp, Inc.,
Winchester, Illinois
Southwest Arkansas Bancshares, Inc.,
Lockesburg, Arkansas
Southwest Bank Holding
Company,
Dallas, Texas
Spectrum Financial Corporation,
Wheeling, West Virginia
Suffolk Bancorp,
Riverhead, New York
Sulphur Springs Bancshares,
Inc.,
Sulphur Springs, Texas
Terrell Bancshares, Inc.,
Terrell, Texas
Texas Commerce Bancshares,
Inc.,
Houston, Texas
Texas National Bancorp, Inc.,
Dallas, Texas
Tricorp, Inc.,
San Antonio, Texas
United Banks of Colorado, Inc.
Denver, Colorado
Bank(s)
The First National Bank of
O'Donnell,
O'Donnell, Texas
Ridglea National Bank,
Fort Worth, Texas
First National Bank Mansfield,
Mansfield, Texas
Peoples Bank and Trust
Company,
Manchester, Tennessee
Peshtigo State Bank,
Peshtigo, Wisconsin
The Peru Trust Company,
Peru, Indiana
Twin Lakes State Bank,
Wichita, Kansas
The First State Bank of
Winchester,
Winchester, Illinois
Bank of Lockesburg,
Lockesburg, Arkansas
Reserve
Bank
Effective
date
Dallas
November 21, 1984
Dallas
November 27, 1984
Atlanta
November 28, 1984
Chicago
November 28, 1984
Chicago
November 28, 1984
Kansas City
December 11, 1984
St. Louis
November 30, 1984
St. Louis
November 26, 1984
Bank of the Southwest of Dallas,
Dallas, Texas
Dallas
December 17, 1984
The First National Bank of New
Martinsville,
New Martinsville, West Virginia
Suffolk County National Bank,
Riverhead, New York
The City National Bank of
Sulphur Springs,
Sulphur Springs, Texas
Terrell State Bank,
Terrell, Texas
Texas Commerce Bank—San
Antonio, N/W, N.A.,
San Antonio, Texas
Texas National Bank,
Dallas, Texas
Trinity National Bank,
San Antonio, Texas
IntraWest Bank of Colorado
Springs, N.A.,
Colorado Springs, Colorado
Cleveland
December 20, 1984
New York
November 30, 1984
Dallas
December 4, 1984
Dallas
December 17, 1984
Dallas
November 30, 1984
Dallas
December 18, 1984
Dallas
November 30, 1984
Kansas City
November 26, 1984
Legal Developments
133
Section 3—Continued
Applicant
University Bancorporation,
Inc.,
College Station, Texas
Vidor Bancorporation, Inc.
Vidor, Texas
Bank(s)
University National Bank of
College Station,
College Station, Texas
First Texas Bank,
Vidor, Texas
Reserve
Bank
Effective
date
Dallas
November 29, 1984
Dallas
November 28, 1984
Section 4
Applicant
Alamo Corporation of Texas,
Alamo, Texas
American Heritage Bancorp,
Inc.,
El Reno, Oklahoma
Central of Kansas, Inc.,
Junction City, Kansas
First Bank System, Inc.,
Minneapolis, Minnesota
Fleet Financial Group, Inc.,
Providence, Rhode Island
Manufacturers Hanover Corporation,
New York, New York
Mercantile Bankshares Corporation,
Baltimore, Maryland
National City Bancorporation,
Minneapolis, Minnesota
Security Pacific Corporation,
Los Angeles, California
Nonbanking
company
Reserve
Bank
Effective
date
Alamo Trust Corporation,
Alamo, Texas
general insurance activities
Dallas
November 27, 1984
Kansas City
November 9, 1984
Central Computer Services, Inc.
Junction City, Kansas
Orcutt, Sletta, Steiner, Inc.,
Mankato, Minnesota
Davidge & Company,
Washington, D.C.
Courtesy Loan Finance, Inc.,
Binghamton, New York
Kansas City
December 14, 1984
Minneapolis
December 13, 1984
Boston
December 11, 1984
New York
December 14, 1984
Richmond
December 24, 1984
Minneapolis
December 21, 1984
San Francisco
November 30, 1984
Reserve
Bank
Effective
date
Suburban Mortgage Servicing
Company,
Bethesda, Maryland
Northwest Marquette Investments, Inc.,
Minneapolis, Minnesota
RMJ Securities Corp.,
New York, New York
Sections 3 and 4
Applicant
Barclays USA Inc.,
New York, New York
Barclays Corporation,
New York, New York
Bank(s)/Nonbanking
Company
Barclays Bank of California,
San Francisco, California
Barclays Bank of New York,
N.A.,
New York, New York
Barclays USA,
New York, New York
Barclay s AmericanCorporation,
Charlotte, North Carolina
New York
November 30, 1984
134
Federal Reserve Bulletin • February 1985
Sections 3 and 4—Continued
Applicant
Citizens State Bank at Mohall
Employee Stock Ownership
Plan,
Mohall, N o r t h D a k o t a
Franklin Capital Corporation,
Wilmette, Illinois
Leasing Equipment Services,
Inc.,
Kansas City, Missouri
River Valley Bancorporation,
Inc.,
Rothschild, Wisconsin
Whitewater B a n c o r p , Inc.,
Whitewater, Wisconsin
PENDING
CASES INVOLVING
Bank(s)/Nonbanking
Company
CSB Bancshares, Inc.,
Mohall, North Dakota
Citizens State Bank at Mohall,
Mohall, North Dakota
N o r t h Shore Capital Corporation,
Wilmette, Illinois
The North Shore National Bank
of Chicago,
Chicago, Illinois
N S C C Leasing Corp.,
Chicago, Illinois
Morton Grove Bank,
Morton Grove, Illinois
Western Capital Corporation,
Wilmette, Illinois
Western National Bank of Cicero,
Cicero, Illinois
University State Bancshares,
Inc.,
L a w r e n c e , Kansas
University State Bank,
L a w r e n c e , Kansas
F a r m e r s State Bank,
Pound, Wisconsin
lending activities
Palmyra State Bank,
Palmyra, Wisconsin
insurance activities
THE BOARD
OF
Effective
date
Minneapolis
N o v e m b e r 28, 1984
Chicago
N o v e m b e r 28, 1984
Kansas City
D e c e m b e r 7, 1984
Chicago
N o v e m b e r 30, 1984
Chicago
D e c e m b e r 21, 1984
GOVERNORS
This list of pending cases does not include suits against
Governors is not named a party.
Citicorp v. Board of Governors, No. 84-445 (2d Cir.,
filed Oct. 12, 1984).
David Bolger Revocable Trust v. Board of Governors,
N o . 84-3550 (3rd Cir., filed Aug. 31, 1984).
Citicorp v. Board of Governors, N o . 84-4121 (2d Cir.,
filed Aug. 27, 1984).
Bank of New York Co., Inc. v. Board of Governors,
N o . 84-4091, (2d Cir., filed June 14, 1984).
Citicorp v. Board of Governors, No. 84-4081 (2d Cir.,
filed May 22, 1984).
Seattle Bancorporation
v. Board of Governors,
No.
84-7535 (9th Cir., filed Aug. 15, 1984).
Citicorp v. Board of Governors, N o . 84-4081 (2d Cir.,
filed May 22, 1984).
Reserve
Bank
the Federal
Reserve
Banks in which the Board
of
Lamb v. Pioneer First Federal Savings and Loan
Association, N o . C84-702 (D. W a s h . , filed May 8,
1984).
Girard Bank v. Board of Governors, N o . 84-3262 (3rd
Cir., filed May 2, 1984).
Melcher v. Federal Open Market Committee, N o . 8 4 1335 (D.D.C., filed, Apr. 30, 1984).
Florida Bankers Association
v. Board of Governors,
N o . 84-3269 and N o . 84-3270 (11th Cir., filed
Apr. 20, 1984).
Northeast Bancorp, Inc. v. Board of Governors, N o .
84-363 ( U . S . , filed Mar. 27, 1984).
Huston v. Board of Governors, N o . 84-1361 (8th Cir.,
filed Mar. 20, 1984); and N o . 84-1084 (8th Cir. filed
Jan. 17, 1984).
Legal Developments
State of Ohio v. Board of Governors, No. 84-1270
(10th Cir., filed Jan. 30, 1984).
Ohio Deposit Guarantee Fund v. Board of Governors,
No. 84-1257 (10th Cir., filed Jan. 28, 1984).
Colorado Industrial Bankers Association v. Board of
Governors, No. 84-1122 (10th Cir., filed Jan. 27,
1984).
Financial Institutions Assurance Corp. v. Board of
Governors, No. 84-1101 (4th Cir., filed Jan. 27,
1984).
Firs-t Bancorporation v. Board of Governors, No. 841011 (10th Cir., filed Jan. 5, 1984).
Dimension Financial Corporation v. Board of Governors, No. 83-2696 (10th Cir., filed Dec. 30, 1983).
Oklahoma Bankers Association v. Federal
Reserve
Board, No. 83-2591 (10th Cir., filed Dec. 13, 1983).
The Committee for Monetary Reform v. Board of
Governors, No. 84-5067 (D.C. Cir., filed June 16,
1983).
135
Association of Data Processing Service
Organizations
v. Board of Governors, No. 82-1910 (D.C. Cir., filed
Aug. 16, 1982); and No. 82-2108 (D.C. Cir., filed
Aug. 16, 1982).
Wolfson v. Board of Governors, No. 83-3570 (11th
Cir., filed Sept. 28, 1981).
First Bank & Trust Company v. Board of Governors,
No. 81-38 (E.D. Ky., filed Feb. 24, 1981).
9 to 5 Organization for Women Office Workers v.
Board of Governors, No. 83-1171 (1st Cir., filed
Dec. 30, 1980).
Securities Industry Association v. Board of Governors, No. 80-2614 (D.C. Cir., filed Oct. 24. 1980),
and No. 80-2730 (D.C. Cir., filed Oct. 24, 1980).
A. G. Becker, Inc. v. Board of Governors, No. 802614 (D.C. Cir., filed Oct. 14, 1980), and No. 802730 (D.C. Cir., filed Oct. 14, 1980).
64
Financial and Business Statistics
CONTENTS
Domestic
WEEKLY REPORTING COMMERCIAL
Financial
Statistics
MONEY STOCK AND BANK
A3
A4
A5
A5
CREDIT
Reserves, m o n e y stock, liquid assets, and debt
measures
Reserves of depository institutions, Reserve
Bank credit
Reserves and borrowings—Depository
institutions
Federal f u n d s and repurchase agreements—
Large member b a n k s
POLIC Y INS TR UMENTS
A6
A7
A8
A9
Federal Reserve Bank interest rates
Reserve requirements of depository institutions
Maximum interest rates payable on time and
savings deposits at federally insured institutions
Federal Reserve open market transactions
FEDERAL RESERVE
BANKS
A10 Condition and Federal Reserve note statements
A l l Maturity distribution of loan and security
holdings
MONETARY AND CREDIT AGGREGATES
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock, liquid assets, and debt measures
A15 Bank debits and deposit turnover
A16 L o a n s and securities—All commercial banks
COMMERCIAL BANKING
INSTITUTIONS
A17 Major nondeposit f u n d s
A18 Assets and liabilities, last-Wednesday-of-month
series
A19
A20
A21
A22
A23
BANKS
Assets and liabilities
All reporting banks
Banks in N e w York City
Balance sheet m e m o r a n d a
Branches and agencies of foreign banks
Gross d e m a n d deposits—individuals,
partnerships, and corporations
FINANCIAL
MARKETS
A24 Commercial paper and bankers dollar
acceptances outstanding
A24 Prime rate charged by b a n k s on short-term
business loans
A25 T e r m s of lending at commercial banks
A26 Interest r a t e s — m o n e y and capital markets
A27 Stock market—Selected statistics
A28 Selected financial institutions—Selected assets
and liabilities
FEDERAL
A30
A31
A32
A32
FINANCE
Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U . S . T r e a s u r y — T y p e s and
ownership
A33 U.S. government securities dealers—
Transactions
A34 U . S . government securities dealers—Positions
and financing
A35 Federal and federally sponsored credit
agencies—Debt outstanding
A2
Federal Reserve Bulletin • February 1985
International
SECURITIES MARKETS AND
CORPORATE FINANCE
Statistics
S UMMAR Y STA TIS TICS
A36 New security issues—State and local
governments and corporations
A37 Open-end investment companies—Net sales and
asset position
A37 Corporate profits and their distribution
A37 Nonfinancial corporations—Assets and
liabilities
A38 Total nonfarm business expenditures on new
plant and equipment
A38 Domestic finance companies—Assets and
liabilities and business credit
A53
A54
A54
A54
U.S. international transactions—Summary
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
A55 Foreign branches of U.S. banks—Balance sheet
data
A57 Selected U.S. liabilities to foreign official
institutions
REPORTED BY BANKS IN THE UNITED STATES
REAL ESTATE
A39 Mortgage markets
A40 Mortgage debt outstanding
CONSUMER INSTALLMENT CREDIT
A41 Total outstanding and net change
A42 Terms
A57
A58
A60
A61
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A61 Banks' own claims on unaffiliated foreigners
A62 Claims on foreign countries—Combined
domestic offices and foreign branches
REPORTED BY NONBANKING BUSINESS
ENTERPRISES IN THE UNITED STATES
FLOW OF FUNDS
A43 Funds raised in U.S. credit markets
A44 Direct and indirect sources of funds to credit
markets
A63 Liabilities to unaffiliated foreigners
A64 Claims on unaffiliated foreigners
SECURITIES HOLDINGS AND TRANSACTIONS
Domestic
Nonfinancial
Statistics
SELECTED MEASURES
A45 Nonfinancial business activity—Selected
measures
A45 Labor force, employment, and unemployment
A46 Output, capacity, and capacity utilization
A47 Industrial production—Indexes and gross value
A49 Housing and construction
A50 Consumer and producer prices
A51 Gross national product and income
A52 Personal income and saving
A65 Foreign transactions in securities
A66 Marketable U.S. Treasury bonds and notes—
Foreign holdings and transactions
INTEREST AND EXCHANGE RATES
A67 Discount rates of foreign central banks
A67 Foreign short-term interest rates
A68 Foreign exchange rates
A69 Guide to Tabular
Statistical Releases,
Tables
Presentation,
and Special
Money Stock and Bank Credit
A3
1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent)1
Item
1983
Q4
Ql'
Q2'
1984
Q3
July'
Aug.'
Sept.'
Oct.'
Nov.
institutions2
1
2
3
4
Reserves of depository
Total
Required
Nonborrowed
Monetary base3
5
6
7
8
9
Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt
Nontransaction
10 In M25
11 In M3 only6
1984
.8
.3
8.2
7.8
7.7
5.3
9.0
9.3
8.5
10.3
-10.8
7.1
6.8
6.6
-44.6
7.3
-1.5
3.5
-91.7
5.6
4.6
2.3
-72.3
7.5
-7.6
-5.8
21.0
.1
-12.3
-12.1
32.4
2.3
11.3
9.1
66.4
4.0
4.8
8.5
9.7'
8.6'
10.8
7.2
6.9
8.0'
10.4'
12.9
6.2
6.9
10.5
12.4
13.1
4.5
6.2
8.2
n.a.
12.7
-1.1
5.2
8.9
13.4
13.1
2.0
4.8
4.4
7.5
13.2
4.8
7.7
7.2
n.a.
10.2
-7.4
6.1
10.5
n.a.
11.4
8.6
15.0
16.0
n.a.
n.a.
9.7
14.9'
6.8
12.7
7.1
25.8
7.2
23.6
5.7
3.1
8.6
5.1
10.3
27.9
16.9
19.8
-6.4
19.3
-2.1'
-16.2
4.4
-.3
-6.4
8.6
24.3
-5.6
18.4
21.6
-5.6
20.0
26.0
-10.4
19.7
2.4
-3.8
14.0
11.7
-6.7
6.6
21.4
-4.8
5.3
-4.6
-4.4
18.8
58.1
-5.1
11.8
59.0
.5
8.9
46.4
-7.0
22.7
35.7
-10.2
25.9
44.5
-15.0
27.6
22.4
-2.8
20.1
-14.0
-5.5
20.5
32.0
-4.9
11.7
39.8
14.3
9.8
10.2
16.7
11.8
14.0
12.7
13.2
10.0
14.9
12.0
7.5
16.1
12.2
8.7
21.9
10.7
8.2
10.0
10.3
7.3
11.1
11.5
7.3
n.a.
n.a.
11.8
components
Time and savings deposits
Commercial banks
Savings7
Small-denomination time8
Large-denomination time 9 1 0
Thrift institutions
15 Savings7
16 Small-denomination time
17 Large-denomination time9
12
13
14
Debt components4
18 Federal
19 Nonfederal
20 Total loans and securities at commercial banks"
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter.
2. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
3. The monetary base not adjusted for discontinuities consists of total
reserves plus required clearing balances and adjustments to compensate for float
at Federal Reserve Banks plus the currency component of the money stock less
the amount of vault cash holdings of thrift institutions that is included in the
currency component of the money stock plus, for institutions not having required
reserve balances, the excess of current vault cash over the amount applied to
satisfy current reserve requirements. After the introduction of contemporaneous
reserve requirements (CRR), currency and vault cash figures are measured over
the weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock plus the remaining items seasonally
adjusted as a whole.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits
at all commercial banks other than those due to domestic banks, the U.S.
government, and foreign banks and official institutions less cash items in the
process of collection and Federal Reserve float; and (4) other checkable deposits
(OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer
service (ATS) accounts at depository institutions, credit union share draft
accounts, and demand deposits at thrift institutions. The currency and demand
deposit components exclude the estimated amount of vault cash and demand
deposits respectively held by thrift institutions to service their OCD liabilities.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, MMDAs, savings and smalldenomination time deposits (time deposits—including retail RPs—in amounts of
less than $100,000), and balances in both taxable and tax-exempt general purpose
and broker/dealer money market mutual funds. Excludes individual retirement
accounts (IRA) and Keogh balances at depository institutions and money market
funds. Also excludes all balances held by U.S. commercial banks, money market
6.8
16.1'
funds (general purpose and broker/dealer), foreign governments and commercial
banks, and the U.S. government. Also subtracted is a consolidation adjustment
that represents the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposits.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted is
a consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are on an end-of-month basis. Growth rates for debt reflect adjustments for
discontinuities over time in the levels of debt presented in other tables.
5. Sum of overnight RPs and Eurodollars, money market fund balances
(general purpose and broker/dealer), MMDAs, and savings and small time
deposits less the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposit liabilities.
6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents,
money market fund balances (institution-only), less a consolidation adjustment
that represents the estimated amount of overnight RPs and Eurodollars held by
institution-only money market mutual funds.
7. Excludes MMDAs.
8. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All IRA and Keogh accounts at commercial
banks and thrifts are subtracted from small time deposits.
9. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
10. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
11. Changes calculated from figures shown in table 1.23. Beginning December
1981, growth rates reflect shifts of foreign loans and securities from U.S. banking
offices to international banking facilities.
A4
DomesticNonfinancialStatistics • February 1985
1.11
RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week ending
1984
1984
Factors
Sept.
Oct.
Nov.
179,643
177,114
180,040
177,882
175,166
176,159
179,415
179,631
180,246
180,643
154,137
152,532
1,605
8,674
8,493
181
0
7,251
462
9.119
11.098
4,618
16.219
149,686
149,686
0
8,484
8,484
0
0
5,940
820
12,184
11,097
4,618
16,266
154,357
153,519
838
8,479
8,425
54
0
4,660
829
11,715
11,096
4,618
16,317
148,833
148,833
0
8.482
8,482
0
0
6,822
1,451
12,295
11,097
4,618
16,263
148,166
148,166
0
8,479
8,479
0
0
5,645
679
12,198
11,097
4,618
16,275
149,457
149,457
0
8,479
8,479
0
0
5,187
557
12,478
11,096
4,618
16,286
152,446
150,110
2,336
8,625
8.479
146
0
5,561
213
12,570
11,096
4,618
16,297
152,998
152,998
0
8,453
8,453
0
0
4,683
727
12.770
11,096
4.618
16.309
155,669
154,485
1,184
8,464
8,389
75
0
4,268
892
10,953
11,096
4,618
16,321
155,715
155,643
72
8,400
8,389
11
0
4,148
1,156
11,225
11,096
4,618
16,333
176.436
465
176,560
474
178,701
490
177,244
475
176,387
475
175,857
475
176,999
480
178,581
491
179,092
490
179,847
495
6.117
234
1.339
4,021
226
1,483
3,177
246
1,619
3,702
216
1,349
3,136
213
1,395
3.803
237
1.906
3.191
237
1,817
3,128
266
1,436
3,509
234
1,590
2,984
223
1,520
Oct. 17
Oct. 24
Oct. 31
Nov. 7
Nov. 14
Nov. 21
Nov. 28
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit
2
U.S. government securities'
3
Bought outright
Held under repurchase agreements....
4
5
Federal agency obligations
6
Bought outright
Held under repurchase agreements....
7
8
Acceptances
Loans
9
10 Float
11 Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate account....
14 Treasury currency outstanding
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and adjustments . . . .
20 Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks2
476
348
520
355
287
286
606
537
497
466
6,253
6,195
6,298
6,307
6,228
6,172
6,379
6,265
6,304
6,236
20,258
19,789
21,020
20,214
19,035
19,422
21,717
20,951
20,566
20,919
End-of-month figures
Wednesday figures
1984
1984
Sept.
Oct.
Nov.
23 Reserve Bank credit
182,641
174,892
182,391
179,104
173,495
174,892
184,044
180,370
181,617
180,899
24
25
26
27
28
29
30
31
32
33
155,018
155,018
0
8.493
8,493
0
0
6,633
289
12,208
148,220
148,220
0
8,479
8,479
0
0
5,060
658
12,475
157,770
157,770
0
8,389
8,389
0
0
5,073
-16
11,175
150.419
150,419
0
8,479
8,479
0
0
6.425
1,580
12,201
147,877
147,877
0
8,479
8,479
0
0
5,164
-602
12,577
148,220
148,220
0
8,479
8,479
0
0
5,060
658
12,475
150,620
150,262
358
8,504
8,479
25
0
12,193
142
12,585
153,152
153,152
0
8,389
8,389
0
0
4,968
821
13,040
154,157
153,654
503
8,466
8,389
77
0
6,732
1,183
11,079
155,214
155,214
0
8,389
8,389
0
0
3,750
2,371
11,175
11,097
4,618
16,237'
11,096
4,618
16,295
11,096
4,618
16,343
11,097
4.618
16,273
11,096
4,618
16,285
11,096
4,618
16,295
11,096
4,618
16,307
11,096
4,618
16,319
11,096
4,618
16,331
11,096
4,618
16,343
175,340''
465
176,300
482
179,494
500
177.066
472
176,122
475
176,300
482
177,860
491
179,154
489
179,765
493
179,905
500
3,791
270
1,132
2,216
392
1,254
4,188
259
1,143
2,971
194
1,142
3,791
270
1,132
4,176
245
1,133
3,740
191
1,134
2,679
226
1,138
3,431
213
1,254
Oct. 17
Oct. 24
Oct. 31
Nov. 7
Nov. 14
Nov. 21
Nov. 28
SUPPLYING RESERVE FUNDS
U.S. government securities'
Bought outright
Held under repurchase agreements....
Federal agency obligations
Bought outright
Held under repurchase agreements
Acceptances
Loans
Float
Other Federal Reserve assets
34 Gold stock
35 Special drawing rights certificate account
36 Treasury currency outstanding
...
ABSORBING RESERVE FUNDS
37 Currency in circulation
38 Treasury cash holdings
Deposits, other than reserve balances with
Federal Reserve Banks
39 Treasury
40
Foreign
41 Service-related balances and adjustments
42
Other
43 Other Federal Reserve liabilities and
capital
44 Reserve balances with Federal
Reserve Banks2
8,514
206
1.139
383
321
447
318
275
321
561
494
462
456
6,073
5,997
6,347
6,110
6,037
5,997
6,063
6,096
6,062
6,057
22,473
18,608
23,798
21,536
18,279
18,608
25,537
21,105
22,837
21,140
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. Excludes required clearing balances and adjustments to compensate for
float.
NOTE. For amounts of currency and coin held as reserves, see table 1.12.
Money Stock and Bank Credit
1.12 RESERVES AND BORROWINGS
Millions of dollars
A5
Depository Institutions
Monthly averages8
Reserve classification
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks'
Total vault cash2
Vault cash used to satisfy reserve requirements3 .
Surplus vault cash 4
Total reserves5
Required reserves
Excess reserve balances at Reserve Banks6
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks7
1984
1981
1982
1983
Dec.
Dec.
Dec.
May
June
July
Aug.
Sept.
Oct.
Nov.
26,163
19,538
15,755
3,783
41,918
41,606
312
642
53
149
24,804
20,392
17,049
3,343
41,853
41,353
500
697
33
187
20,986
20,755
17,908
2,847
38,894
38,333
561
774
96
2
19,560
20,446
16,960
3,486
36,519
35,942
577
2,988
196
37
20,210
20,770
17,308
3,461
37,518
36,752
767
3,300
264
1,873
19,885
21,134
17,579
3,555
37,464
36,858
607
5,924
308
5,008
19,263
21,688
17,995
3,694
37,258
36,575
683
8,017
346
7,043
20,135
21,232
17,900
3,333
38,035
37,415
620
7,242
319
6,459
20,086'
21,875
18,413
3,462
38,50C
37,892r
607r
6,017
299
5,057
20,829
21,827
18,392
3,434
39,221
38,544
677
4,617
212
3,837
Biweekly averages of daily figures for weeks ending
1984
11
12
13
14
15
16
17
18
19
20
Reserve balances with Reserve Banks'
Total vault cash2
Vault cash used to satisfy reserve requirements3 .
Surplus vault cash4
Total reserves5
Required reserves
Excess reserve balances at Reserve Banks6
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks7
Aug. 1
Aug. 15
Aug. 29
Sept. 12
Sept. 26
Oct. 10
Oct. 24
Nov. 7
Nov. 21
Dec. 5P
19,079
21,597
17,789
3,808
36,868
36,233
635
7,155
340
6,098
19,690
21,533
17,923
3,610
37,613
36,914
699
7,987
338
6,976
18,722
21,981
18,166
3,815
36,887
36,211
677
8,146
360
7,184
20,158
20,782
17,405
3,377
37,563
36,929
634
7,755
309
7,001
20,038
21,522
18,232
3,290
38,270
37,744
527
7,110
328
6,369
20,406
21,571
18,221
3,350
38,627
37,723
904
6,165
315
5,147
19,617
22,329
18,784
3,545
38,400
37,984
416
6,234
305
5,431
20,566'
21,404
17,949
3,456
38,514'
37,949'
566'
5,373
265
4,184'
20,734
22,117
18,661
3,456
39,395
38,800
595
4,476
204
3,888
21,181
21,705
18,320
3,385
39,501
38,611
890
4,251
184
3,488
1. Excludes required clearing balances and adjustments to compensate for
float.
2. Dates refer to the maintenance periods in which the vault cash can be used to
satisfy reserve requirements. Under contemporaneous reserve requirements,
maintenance periods end 30 days after the lagged computation periods in which
the balances are held.
3. Equal to all vault cash held during the lagged computation period by
institutions having required reserve balances at Federal Reserve Banks plus the
amount of vault cash equal to required reserves during the maintenance period at
institutions having no required reserve balances.
4. Total vault cash at institutions having no required reserve balances less the
amount of vault cash equal to their required reserves during the maintenance
period.
5. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash used to satisfy reserve
requirements. Such vault cash consists of all vault cash held during the lagged
1.13
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy
reserve requirements less required reserves.
7. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
8. Before February 1984, data are prorated monthly averages of weekly
averages; beginning February 1984, data are prorated monthly averages of
biweekly averages.
NOTE. These data also appear in the Board's H.3 (502) release. For address, see
inside front cover.
FEDERAL FUNDS AND REPURCHASE AGREEMENTS
Averages of dailyfigures,in millions of dollars
Large Member Banks'
1984 week ending Monday
By maturity and source
Oct. 22
Oct. 29
Nov. 5
Nov. 12
Nov. 19
Nov. 26
Dec. 3
Dec. 10
Dec. 17
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 All other
58,666
55,512
62,538
65,520
63,478
61,122
60,724
65,425
61,557
26,160
4,856
26,481
25,391
5,195
26,717
27,218
6,420
27,833
29,396
6,045
27,548
29,3 lO'
6,498
28,937
30,099
5,878
23,077
30,211
7,637
29,157
29,042
6,295
27,050
28,034
5,325
27,334
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 All other
9,691
9,661
9,527
9,516
8,677
10,027
10,044
9,882
10,058
8,532
7,187
10,904
8,266
7,580
11,128
8,118
7,261
11,519
8,083
7,014
12,487
7,716
6,574
10,342
7,736
7,596
15,416
8,058
5,979
10,217
8,138
5,696
9,592
8,053
6,058
10,206
28,594
4,864
28,125
5,284
32,333
6,343
31,489
5,907
30,583'
5,520
28,549
6,190
29,921
6,693
27,959
6,652
26,465
7,175
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
1. Banks with assets of $1 billion or more as of Dec. 31, 1977.
A6
DomesticNonfinancialStatistics • February 1985
1.14
FEDERAL RESERVE BANK INTEREST RATES
Percent per annum
Current and previous levels
Extended credit1
Short-term adjustment credit
and seasonal credit
Federal Reserve
Bank
Rate on
12/31/84
First 60 days
of borrowing
Effective
date
Previous
rate
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
12/24/84
12/24/84
12/24/84
12/24/84
12/24/84
12/24/84
8'/:
Chicago
St. Louis
Minneapolis
Kansas City . . . .
Dallas
San Francisco...
12/24/84
12/24/84
12/24/84
12/24/84
12/24/84
12/24/84
Rate on
12/31/84
Next 90 days
of borrowing
After 150 days
Effective date
for current rates .
Previous
rate
Rate on
12/31/84
Previous
rate
Rate on
12/31/84
Previous
rate
m
9
9'/:
10
10'/:
8'/:
8'/:
9
9'/:
10
10'/2
12/24/84
12/24/84
12/24/84
12/24/84
12/24/84
12/24/84
12/24/84
12/24/84
12/24/84
12/24/84
12/24/84
12/24/84
-
Range of rates in recent years2
Effective date
In effect Dec. 31, 1973
1974— Apr. 25
30
Dec. 9
16
1975— Jan.
6
10
24
Feb. 5
7
Mar. 10
14
May 16
23
1976—Jan.
19
23
Nov. 22
26
1978— Jan.
9
20
May 11
12
IVI
71/2—8
8
73/4-8
IVA
VA-lVi
3
7'/4-7 /4
7 V4
63/4-7'
/4
63/43
6'/4—6/4
6'/4
6-6'/4
6
5 !/2-6
51/2
51/4-5'/2
51/4
5'/4-53/4
51/4-5V4
53/4
6
6-6'/2
6 '/2
61/2-7
7
F.R.
Bank
of
N.Y.
71/2
8
83
7 /4
M
VM
71/4
71/4
3
6 /4
63/4
6'/4
6 !/4
6
6
5'/2
5V2
51/4
51/4
5'3/4
5 /4
5-V4
6
61/2
6'/2
7
7
Effective da
1978--- July
3
10
Aug. 71
Sept. 71
Oct. 16
70
Nov. 1
3 .
I-1V*
7'/4
VM
8
8—8
8'/:
81/2-91/2
9'/2
1979-- J u l y 70
Aug. 17
70
Sept. 19
71
Oct. 8
10
1980-- Feb. IS
19
May 79
30
June 13
16
July ">8
79
Sept. 76
Nov. 17
Dec. 5
8
1. Applicable to advances when exceptional circumstances or practices involve
only a particular depository institution and to advances when an institution is
under sustained liquidity pressures. As an alternative, for loans outstanding for
more than 150 days, a Federal Reserve Bank may charge a flexible rate that takes
into account rates on market sources of funds, but in no case will the rate charged
be less than the basic rate plus one percentage point. Where credit provided to a
particular depository institution is anticipated to be outstanding for an unusually
prolonged period and in relatively large amounts, the time period in which each
rate under this structure is applied may be shortened. See section 201.3(b)(2) of
Regulation A.
2. Rates for short-term adjustment credit. For description and earlier data see
the following publications of the Board of Governors: Banking and Monetary
Range(or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
7'/4
7l/4
7-V4
8
8'/2
81/:
9'/:
9'/:
II-12
10
10'/:
101*
11
11
12
12
12-13
13
12-13
13
13
13
II
10-11
10
11
II
11
10
10
11
12-13
13
13
13
10
10-10'/:
10'/2
l0'/:-l 1
11
12
12
11-12
12
12
Effective date
1981— May
5
8
Nov. 2
6
Dec. 4
1982—July 20
23
Aug. 2
3
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17
1984— Apr.
9
13
Nov. 21
26
Dec. 24
12
Range (or
level)—
All F.R.
Banks
13-14
14
13-14
13
12
ll'/2-12
ll'/2
ll-ll'/2
11
10'/2
lO-lO'/l
10
9'/2-10
91/2
9-91/2
9
8'/2-9
81/2-9
8'/2
8V2-9
9
8'/2-9
81/2
8
F.R.
Bank
of
N.Y.
14
14
13
13
12
111/2
11 1/2
11
11
101/2
10
10
91/2
91/2
9
9
9
81/2
8'/2
9
9
8'/>
QO 00
1977— Aug. 30
31
Sept. 2
Oct. 26
Range (or
level)—
All F.R.
Banks
In effect Dec. 31, 1984
Statistics. 1914-1941, and 1941-1970; Annual Statistical Digest, 1970-1979. 1980,
1981. and 1982.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than 4 weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,
1980. There was no surcharge until Nov. 17, 1980, when a 2 percent surcharge was
adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and
to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective
Sept. 22, 1981. and to 2 percent effective Oct. 12. As of Oct. 1, the formula for
applying the surcharge was changed from a calendar quarter to a moving 13-week
period. The surcharge was eliminated on Nov. 17, 1981.
Policy Instruments
1.15
A7
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1
Percent of deposits
Type of deposit, and
deposit interval
Member bank requirements
before implementation of the
Monetary Control Act
Percent
Effective date
Net demand2
$10 million-$100 million
$100 million-$400 million
Over $400 million
Time and savings2^
Savings
Time4
$0 million-$5 million, by maturity
30-179 days
180 days to 4 years
4 years or more
Over $5 million, by maturity
30-179 days
180 days to 4 years
4 years or more
7
91/2
113/4
123/4
16'/4
3
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
Depository institution requirements
after implementation of the
Monetary Control Act6
Percent
Effective date
3
12
12/29/83
12/29/83
Nonpersonal time deposits9
By original maturity
Less than l'/2 years
11/2 years or more
3
0
10/6/83
10/6/83
Eurocurrency liabilities
All types
3
11/13/80
Net transaction accounts7
$0-$28.9 million
Over $28.9 million
8
3/16/67
3
2V2
1
3/16/67
1/8/76
10/30/75
6
2 </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 offoreign banks, and Edge Act
corporations.
2. Requirement schedules are graduated, and each deposit interval applies to
that part of the deposits of each bank. Demand deposits subject to reserve
requirements were gross demand deposits minus cash items in process of
collection and demand balances due from domestic banks.
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.
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 of borrowings from unrelated
banks abroad was also reduced to zero from 4 percent.
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. 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.
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. 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.
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 Apr. 3, 1980, was decreased to 5 percent beginning June 12, 1980, and
was eliminated 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
reserve computation periods 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 IVi
percent above the base used to calculate the marginal reserve in the statement
Type of deposit, and
deposit interval5
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. The Garn-St Germain Depository Institutions Act of 1982 (Public Law 97320) provides that $2 million of reservable liabilities (transaction accounts,
nonpersonal time deposits, and Eurocurrency liabilities) of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabilities subject to this zero percent reserve requirement each year for the next succeeding calendar year by 80 percent of the
percentage increase in the total reservable liabilities of all depository institutions,
measured on an annual basis as of June 30. No corresponding adjustment is to be
made in the event of a decrease. Effective Dec. 9, 1982, the amount of the
exemption was established at $2.1 million. Effective with the reserve maintenance
period beginning Jan. 12, 1984, the amount of the exemption is $2.2 million. In
determining the reserve requirements of a depository institution, the exemption
shall apply in the following order: (1) nonpersonal money market deposit accounts
(MMDAs) authorized under 12 CFR section 1204.122; (2) net NOW accounts
(NOW accounts less allowable deductions); (3) net other transaction accounts;
and (4) nonpersonal time deposits or Eurocurrency liabilities starting with those
with the highest reserve ratio. With respect to NOW accounts and other
transaction accounts, the exemption applies only to such accounts that would be
subject to a 3 percent reserve requirement.
6. For nonmember banks and thrift institutions that were not members of the
Federal Reserve System on or after July 1, 1979, a phase-in period ends Sept. 3,
1987. For banks that were members on or after July I, 1979, but withdrew on or
before Mar. 31, 1980, the phase-in period established by Public Law 97-320 ends
on Oct. 24, 1985. For existing member banks the phase-in period of about three
years was completed on Feb. 2, 1984. All new institutions will have a two-year
phase-in beginning with the date that they open for business, except for those
institutions that have total reservable liabilities of $50 million or more.
7. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers (in excess
of three per month) for the purpose of making payments to third persons or others.
However, MMDAs and similar accounts offered by institutions not subject to the
rules of the Depository Institutions Deregulation Committee (DIDC) that permit
no more than six preauthorized, automatic, or other transfers per month of which
no more than three can be checks—are not transaction accounts (such accounts
are savings deposits subject to time deposit reserve requirements.)
8. The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage increase in transaction accounts held by
all depository institutions determined as of June 30 each year. Effective Dec. 31,
1981, the amount was increased accordingly from $25 million to $26 million; and
effective Dec. 30, 1982, to $26.3 million; and effective Dec. 29, 1983, to $28.9
million.
9. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which a beneficial interest is
held by a depositor that is not a natural person. Also included are certain
transferable time deposits held by natural persons, and certain obligations issued
to depository institution offices located outside the United States. For details, see
section 204.2 of Regulation D.
NOTE. Required reserves must be held in the form of deposits with Federal
Reserve Banks or vault cash. Nonmembers may maintain reserve balances with a
Federal Reserve Bank indirectly on a pass-through basis with certain approved
institutions.
A8
DomesticNonfinancialStatistics • February 1985
1.16
MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions1
Percent per annum
Type of deposit
Commercial banks
Savings and loan associations and
mutual savings banks (thrift institutions)1
In effect Dec. 31, 1984
In effect Dec. 31, 1984
Effective date
1
2
3
4
Savings
Negotiable order of withdrawal accounts
Negotiable order of withdrawal accounts of $2,500 or more2
Money market deposit account2
Time accounts by maturity
5 7-31 days of less than $2,5004
6 7-31 days of $2,500 or more2
7 More than 31 days
1. Effective Oct. 1, 1983, restrictions on the maximum rates of interest payable
by commercial banks and thrift institutions on various categories of deposits were
removed. For information regarding previous interest rate ceilings on all categories 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 Corporation before November 1983.
2. Effective Dec. 1, 1983, IRA/Keogh (HR10) Plan accounts are not subject to
minimum deposit requirements.
3. Effective Dec. 14, 1982, depository institutions are authorized to offer a new
account with a required initial balance of $2,500 and an average maintenance
balance of $2,500 not subject to interest rate restrictions. No minimum maturity
5Vi
1/1/84
12/31/80
1/5/83
12/14/82
51/2
1/1/84
1/5/83
10/1/83
5'/4
Effective date
SVi
5'/4
7/1/79
12/31/80
1/5/83
12/14/82
9/1/82
1/5/83
10/1/83
period is required for this account, but depository institutions must reserve the
right to require seven days notice before withdrawals. When the average balance
is less than $2,500, the account is subject to the maximum ceiling rate of interest
for NOW accounts; compliance with the average balance requirement may be
determined over a period of one month. Depository institutions may not guarantee
a rate of interest for this account for a period longer than one month or condition
the payment of a rate on a requirement that the funds remain on deposit for longer
than one month.
4. Deposits of less than $2,500 issued to governmental units continue to be
subject to an interest rate ceiling of 8 percent.
Policy Instruments
1.17
A9
FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1984
Type of transaction
1981
1982
1983
Apr.
June
May
July
Aug.
Sept.
Oct.
U . S . GOVERNMENT SECURITIES
Outright transactions (excluding matched
transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
13,899
6,746
0
1,816
17,067
8,369
0
3,000
18,888
3,420
0
2,400
3,283
0
0
3,283
610
2,003
0
2,200
801
0
0
801
0
897
0
600
187
1,491
0
800
3,249
71
0
0
507
1,300
0
2,200
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
317
23
13,794
-12,869
0
312
0
17,295
-14,164
0
484
0
18,887
-16,553
87
198
0
347
-2,223
0
0
0
2,739
-1,807
0
0
0
1,069
0
0
0
0
427
-2,606
0
0
0
3,811
-2,274
0
600
0
872
0
0
0
0
896
-1,497
0
10
11
12
13
I to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
1,702
0
-10,299
10,117
1,797
0
-14,524
11,804
1,896
0
-15,533
11,641
808
0
-273
2,223
0
0
-2,279
1,150
0
0
-1,069
0
0
0
-345
2,606
0
0
-3,811
1,443
0
0
-872
0
0
0
896
1,497
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
393
0
-3,495
1,500
388
0
-2,172
2,128
890
0
-2,450
2,950
200
0
-75
0
0
0
-383
400
0
0
0
0
0
0
-83
0
0
0
52
500
0
0
0
0
0
0
0
0
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
379
0
0
1,253
307
0
-601
234
383
0
-904
1,962
277
0
0
0
0
0
-77
257
0
0
0
0
0
0
0
0
0
0
-52
332
0
0
0
0
0
0
0
0
22
23
24
All maturities
Gross purchases
Gross sales
Redemptions
16,690
6,769
1,816
19,870
8,369
3,000
22,540
3,420
2,487
1,484
0
0
610
2,003
2,200
801
0
0
0
897
600
0
187
800
3,849
71
0
507
1,300
2,200
25
26
Matched transactions
Gross sales
Gross purchases
589,312
589,647
543,804
543,173
578,591
576,908
72,293
71,754
79,313
79,608
61,017
61,331
81,799
81,143
79,087
78,842
52,893
55,776
89,689
85,884
27
28
Repurchase agreements
Gross purchases
Gross sales
79,920
78,733
130,774
130,286
105,971
108,291
15,313
8,220
8,267
12,199
23,298
26,460
14,830
14,830
4,992
166
26,040
30,867
0
0
9,626
8,358
12,631
11,321
-7,228
-2,047
-2,154
2,478
1,835
-6,798
494
0
108
0
0
189
0
0
292
0
0
2
0
0
40
0
0
15
0
0
V
0
0
5
13,320
13,576
18,957
18,638
8,833
9,213
1,247
820
616
744
1,819
2,117
958
958
381
12
3,743
4,112
0
0
130
130
-672
424
-169
-313
-1
364
-370
-14
36 Repurchase agreements, net
-582
1,285
-1,062
305
122
-426
0
0
0
0
37 Total net change in System Open Market
Account
9,175
9,773
10,897
12,050
-7,275
-2,786
-2,155
2,842
1,465
-6,811
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
0
0
V
0
0
14
BANKERS ACCEPTANCES
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.
A10
1.18
DomesticNonfinancialStatistics • February 1985
FEDERAL RESERVE BANKS
Millions of dollars
Condition and Federal Reserve Note Statements
Account
End of month
1984
1984
Nov. 14
Nov. 7
Oct. 31
Wednesday
Nov. 21
Nov. 28
Sept.
Nov.
Oct.
Consolidated condition statement
ASSETS
11,096
4,618
485
11,096
4,618
481
11,096
4,618
480
11,096
4,618
477
11,096
4,618
455
11,097
4,618
478
11,096
4,618
485
11,096
4,618
451
5,060
0
12,193
0
4,968
0
6,732
0
3,750
0
6,633
0
5,060
0
5,073
0
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4 To depository institutions
5
Other
Acceptances—Bought outright
Held under repurchase agreements
6
Federal agency obligations
7
Bought outright
Held under repurchase agreements
8
U.S. government securities
Bought outright
9
Bills
10
Notes
11
Bonds
12
Total bought outright1
13 Held under repurchase agreements
14 Total U.S. government securities
0
0
0
0
0
0
0
0
8,479
0
8,479
25
8,389
0
8,389
77
8,389
0
8,493
0
8,479
0
8,389
0
61,689
64,494
22,037
148,220
0
148,220
63,731
64,494
22,037
150,262
358
150,620
66,621
64,494
22,037
153,152
0
153,152
65,648
65,055
22,951
153,654
503
154,157
67,208
65,055
22,951
155,214
0
155,214
68,487
64,494
22,037
155,018
0
155,018
61,689
64,494
22,037
148,220
0
148,220
69,764
65,055
22,951
157,770
0
157,770
15 Total loans and securities
161,759
171,317
166,509
169,355
167,353
170,144
161,759
171,232
7,020
565
6,607
565
10,037
566
8,182
567
8,550
567
7,052
564
7,020
565
6,237
565
3,647
8,263
3,647
8,373
3,650
8,824
3,653
6.859
3,658
6,950
3,522
8,122
3,647
8,263
3,648
6,962
197,453
206,704
205,780
204,807
203,247
205,597
197,453
204,809
160,972
162,524
163,804
164,404
164,517
160,046
160,972
164,102
19,740
3,791
270
321
26,670
4,176
245
561
22,239
3,740
191
494
23,975
2,679
226
462
22,394
3,431
213
456
23,612
8,514
206
383
19,740
3,791
270
321
25,052
2,216
392
447
24,122
31,652
26,664
27,342
26,494
32,715
24,122
28,107
6,362
2,433
6,465
2,518
9,216
2,528
6.999
2,479
6,179
2,484
6,763
2,593
6,362
2,433
6,253
2,682
193,889
203,159
202,212
201,224
199,674
202,117
193,889
201,144
1,611
1,465
488
1,614
1,465
466
1,614
1,465
489
1,618
1,465
500
1,618
1,465
490
1,597
1,465
418
1,611
1,465
488
1,620
1,465
580
33 Total liabilities and capital accounts
197,453
206,704
205,780
204,807
203,247
205,597
197,453
204,809
34 MEMO: Marketable U.S. government securities held in
custody for foreign and international account
119,233
118,367
117,677
117,288
118,744
115,174
1)9,233
117,949
16 Cash items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies2
19 All other3
20 Total assets
LIABILITIES
21 Federal Reserve notes
Deposits
22 To depository institutions
23
U.S. Treasury—General account
24
Foreign—Official accounts
25
Other
26 Total deposits
27 Deferred availability cash items
28 Other liabilities and accrued dividends4
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
Federal Reserve note statement
35 Federal Reserve notes outstanding
36
LESS: Held by bank
37
Federal Reserve notes, net
Collateral held against notes net:
38
Gold certificate account
39
Special drawing rights certificate account
40
Other eligible assets
41
U.S. government and agency securities
191,730
30,758
160,972
192,142
29,618
162,524
192,926
29,122
163,804
193,226
28,822
164,404
193,762
29,245
164,517
189,882
29,836
160,046
191,730
30,758
160,972
193,727
29,625
164,102
11,096
4,618
0
145,258
11,096
4,618
0
146,810
11,096
4,618
0
148,090
11,096
4,618
0
148,690
11,096
4,618
0
148,803
11,097
4,618
0
144,331
11,096
4,618
0
145,258
11,096
4,618
0
148,388
42 Total collateral
160,972
162,524
163,804
164,404
164,517
160,046
160,972
164,102
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. Assets shown in this line are revalued monthly at market exchange rates.
3. Includes special investment account at Chicago of Treasury bills maturing
within 90 days.
4. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
NOTE: Some of these data also appear in the Board's H.4.1 (503) release. For
address, see inside front cover.
Federal Reserve Banks
1.19
FEDERAL RESERVE BANKS
Millions of dollars
A11
Maturity Distribution of Loan and Security Holdings
End of month
Wednesday
1984
Type and maturity groupings
Oct. 31
Nov. 7
Nov. 14
Nov. 21
Nov. 28
Sept. 28
Oct. 31
Nov. 30
1 Loans—Total
2
Within 15 days
16 days to 90 days
3
4 91 days to 1 year
5,060
4,973
87
0
12,173
12,061
112
0
4,968
4,856
112
0
6,732
6,683
49
0
3,750
3,697
53
0
6,633
6,546
87
0
5,060
4,973
87
0
5,073
5,004
69
0
5 Acceptances—Total
Within 15 days
6
7
16 days to 90 days
8 91 days to 1 year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
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
148,220
5,672
29,871
44.811
33,690
14,808
19,368
150,620
5,632
31,552
45,570
33,690
14,808
19,368
153,152
9,572
29,051
46,663
33,690
14,808
19,368
154,157
7,684
29,885
45,193
37,062
14,100
20,233
155,214
7,463
31,558
44,798
37,062
14,100
20,233
155,018
7,125
35,452
44,305
33,960
14,808
19,368
148,220
5,672
29,871
44,811
33,690
14,808
19,368
157,770
4,892
34,871
46,797
36,877
14,100
20,233
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
8,479
174
560
1,756
4,358
1,232
399
8.504
115
640
1,760
4,358
1.232
399
8,389
40
617
1,743
4,358
1.232
399
8,466
185
549
1.743
4,358
1,232
399
8,389
226
473
1,727
4,334
1,230
399
8,493
234
563
1,721
4,310
1,266
399
8,479
17
560
1,756
4,358
1.232
399
8,389
226
473
1,727
4,334
1,230
399
1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements.
A12
DomesticNonfinancialStatistics • February 1985
1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE A
Billions of dollars, averages of daily figures
Item
1980
Dec.
1981
Dec.
1982
Dec.
1984
1983
Dec.
May
Apr.
2
3
4
5
Nonborrowed reserves
Nonborrowed reserves plus extended credit3
Required reserves
Monetary base4
July
Aug.
Sept.
Oct.
Nov.
Seasonally adjustec
ADJUSTED FOR
1 Total reserves2
June
31.07
32.14
34.34
36.14
37.11
37.45
38.28
38.23
38.38
38.14
37.74
38.10
29.38
29.38
30.55
150.38
31.51
31.65
31.82
158.15
33.70
33.89
33.84
170.21
35.36
35.37
35.58
185.49
35.87
35.92
36.62
190.36
34.46
34.50
36.87
191.98
34.98
36.85
37.52
193.86
32.31
37.32
37.63
194.75
30.36
37.41
37.70
195.98
30.89
37.35
37.52
195.99
31.73
36.79
37.14
196.37
33.48
37.32
37.42
197.02
Not seasonally adjusted
6 Total reserves2
7
8
9
10
Nonborrowed reserves
Nonborrowed reserves plus extended credit3
Required reserves
Monetary base4
31.77
32.86
35.06
36.86
37.48
36.77
37.79
37.85
37.69
37.87
37.94
38.67
30.08
30.08
31.25
153.08
32.23
32.37
32.54
161.00
34.43
34.62
34.56
173.24
36.09
36.09
36.30
188.76
36.24
36.29
36.99
190.67
33.78
33.82
36.19
191.33
34.49
36.37
37.03
194.24
31.92
36.93
37.24
195.91
29.67
36.72
37.01
196.13
30.63
37.09
37.25
196.07
31.92
36.98
37.33
196.12
34.06
37.89
38.00
198.21
40.66
41.92
41.85
38.89
37.15
36.52
37.52
37.46
37.26
38.03
38.50
39.22
38.97
38.97
40.15
163.00
41.29
41.44
41.61
170.47
41.22
41.41
41.35
180.52
38.12
38.12
38.33
192.36
35.92
35.77
36.66
190.34
33.53
33.83
35.94
191.08
34.22
36.22
36.75
193.96
31.54
36.38
36.86
195.53
29.24
36.28
36.57
195.70
30.79
37.28
37.41
196.23
32.48
37.35
37.89
196.68
34.60
38.53
38.54
198.75
NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS5
11 Total reserves2
12
13
14
15
Nonborrowed reserves
Nonborrowed reserves plus extended credit3
Required reserves
Monetary base4
• Figures have been revised from 1959 to date.
1. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
2. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash used to satisfy reserve
requirements. Such vault cash consists of all vault cash held during the lagged
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
3. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
4. The monetary base not adjusted for discontinuities consists of total reserves
plus required clearing balances and adjustments to compensate for float at Federal
Reserve Banks and the currency component of the money stock less the amount
of vault cash holdings of thrift institutions that is included in the currency
component of the money stock plus, for institutions not having required reserve
balances, the excess of current vault cash over the amount applied to satisfy
current reserve requirements. After the introduction of contemporaneous reserve
requirements (CRR), currency and vault cash figures are measured over the
weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock and the remaining items seasonally
adjusted as a whole.
5. Reflects actual reserve requirements, including those on nondeposit liabilities. with no adjustments to eliminate the effects of discontinuities associated
with implementation of the Monetary Control Act or other regulatory changes to
reserve requirements.
NOTE. Latest monthly and biweekly figures are available from the Board's
H.3(502) statistical release. Historical data and estimates of the impact on
required reserves of changes in reserve requirements are available from the
Banking Section, Division of Research and Statistics, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
Monetary and Credit Aggregates
1.21
A13
MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Billions of dollars, averages of daily figures
1984
1980
Dec.
1981
Dec.
1982
Dec.
1983
Dec.
Aug.
Sept.
Oct.
Nov.
Seasonally adjusted
414.9
1,632.6
1,989.8
2,326.0
3,946.9
441.9
1,796.6
2,236.7
2,598.4
4,323.8
480.5
1,965.3
2,460.3
2,868.7
4,710.1
525.4'
2,196.3'
2,710.4'
3,178.7'
5,224.6'
546.7
2,291.1
2,873.7'
3,435.3
5,694.5'
116.7
4.2
266.5
27.6
124.0
4.3
236.2
77.4
134.1
4.3
239.7
102.4
148.0
4.9
243.7
128.9'
1,217.7
357.2
1,354.6
440.2
1,484.8
495.0
Savings deposits9
Commercial Banks
Thrift institutions
185.9
215.6
159.7
186.1
14
15
Small denomination time deposits9
Commerical Banks
Thrift institutions
287.5
443.9
16
17
Money market mutual funds
General purpose and broker/dealer
Institution-only
18
19
Large denomination time deposits10
Commercial Banks"
Thrift institutions
20
21
Debt components
Federal debt
Non-federal debt
1
2
3
4
5
Ml
M2
M3
L
Debt2
6
7
8
9
Ml components
Currency2
Travelers checks3
Demand deposits4
Other checkable deposits5
to
11
Nontransactions components
In M26
In M3 only7
12
13
548.9
2,305.8
2,891.1'
n.a.
5,743.1'
545.5
2,317.5'
2,916.3'
n.a.
5,797.7'
549.4
2,346.4
2,955.0
n.a.
n.a.
156.0
5.2
245.5
139.9'
156.7
5.1
246.4
140.8
157.2
5.0
243.8
139.6
157.5
5.1
245.7
141.1
1,670.9
514.1'
1,744.4
582.7'
1,756.9
585.2'
1,772.0'
598.8'
1,796.9
608.7
164.9
197.2
134.6
178.2
126.3
173.4
125.9
173.0
125.2
172.2
124.7
171.5
349.6
477.7
382.2
474.7
353.1
440.0
377.9
484.2
382.3
492.3
384.4
500.7'
386.1
505.6
61.6
15.0
150.6
36.2
185.2
48.4
138.2
43.2'
150.5
46.2
151.9
46.9
155.5
52.2
162.1
58.3
213.9
44.6
247.3
54.3
261.8
66.1
225.1'
100.4
255.3
136.7
257.8
135.1
262.3
138.7
261.4
143.3
742.8
3,204.1
830.1
3,493.7
991.4
3,718.7
1,173.1
4,051.6'
1,300.1
4,394.4'
1,310.9
4,432.2'
1,323.1'
4,474.7'
n.a.
n.a.
546.3
2,299.4
2,885.4'
n.a.
5,731.9'
546.0
2,316.8'
2,914.4'
n.a.
5,791.1'
553.4
2,344.8
2,956.1
n.a.
n.a.
156.5
5.4
245.3
139.1
156.7
5.0
244.9
139.4
Not seasonally adjusted
22
23
24
25
26
Ml
M2
M3
L
Debt2
27
28
29
30
Ml components
Currency2
Travelers checks3
Demand deposits4
Other checkable deposits5
31
32
Nontransactions components
M26
M3 only7
33
34
Money market deposit accounts
Commercial banks
Thrift institutions
424.8
1,635.4
1,996.1
2,332.8
3,946.9
452.3
1,798.7
2,242.7
2,605.6
4,323.8
491.9
1,967.4
2,466.6
2,876.5
4,710.1
537.8'
2,198.1'
2,716.5'
3,189.4'
5,218.5'
542.7
2,288.5
2,871.9'
3,424.8
5,676.2'
118.8
3.9
274.7
27.4
126.1
4.1
243.6
78.5
136.4
4.1
247.3
104.1
150.5
4.6
251.6
131.3'
156.5
5.7
242.9
137.6'
1,210.6
360.7
1,346.3
444.1
1,475.5
499.2
1,660.2
518.4'
1,745.8
583.4'
1,753.1
586.0'
1,770.8'
597.6'
n.a.
n.a.
n.a.
n.a.
26.3
16.6
230.0
145.9
242.6
141.2
243.8
139.6
247.2
139.6
256.1
141.3
183.8
214.4
157.5
184.7
162.1
195.5
132.0
176.5
126.4
173.4
124.7
171.9
123.8
171.9
122.3
170.5
286.0
442.3
347.7
475.6
380.1
472.4
351.0
437.6
377.6
482.6
381.6
490.2
383.8
499.8'
384.9
504.2
158.6
4.8
248.0
142.0
1,791.4
611.3
8
35
36
Savings deposits
Commercial Banks
Thrift institutions
9
37
38
Small denomination time deposits
Commercial Banks
Thrift institutions
39
40
Money market mutual funds
General purpose and broker/dealer
Institution-only
61.6
15.0
150.6
36.2
185.2
48.4
138.2
43.2'
150.5
46.2
151.9
46.9
155.5
52.2'
162.1
58.3
41
42
Large denomination time deposits 10
Commercial Banks"
Thrift institutions
218.5
44.3
252.1
54.3
266.2
66.2
228.5'
100.7
255.6
136.9
258.7
136.9
263.2
141.7
263.0
146.1
43
44
Debt components
Federal debt
Non-federal debt
742.8
3,204.1
830.1
3,943.7
991.4
3,718.7
1,170.2
4,048.3'
1,295.8
4,380.5'
1,310.5
4,421.4'
1,323.0'
4,468.1'
n.a.
n.a.
For notes see following page.
A14
DomesticNonfinancialStatistics • February 1985
NOTES TO TABLE 1.21
1. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits
at all commercial banks other than those due to domestic banks, the U.S.
government, and foreign banks and official institutions less cash items in the
process of collection and Federal Reserve float ; and (4) other checkable deposits
(OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer
service (ATS) accounts at depository institutions, credit union share draft
accounts, and demand deposits at thrift institutions. The currency and demand
deposit components exclude the estimated amount of vault cash and demand
deposits respectively held by thrift institutions to service their OCD liabilities.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, MMDAs. savings and smalldenomination time deposits (time deposits—including retail RPs—in amounts of
less than $100,000). and balances in both taxable and tax-exempt general purpose
and broker/dealer money market mutual funds. Excludes individual retirement
accounts (IRA) and Keogh balances at depository institutions and money market
funds. Also excludes all balances held by U.S. commercial banks, money market
funds (general purpose and broker/dealer), foreign governments and commercial
banks, and the U.S. government. Also subtracted is a consolidation adjustment
that represents the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposits.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted is
a consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are on an end-of-month basis.
2. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of
commercial banks. Excludes the estimated amount of vault cash held by thrift
institutions to service their OCD liabilities.
3. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. Travelers checks issued by depository institutions are included in
demand deposits.
4. Demand deposits at commercial banks and foreign-related institutions other
than those due to domestic banks, the U.S. government, and foreign banks and
official institutions less cash items in the process of collection and Federal
Reserve float. Excludes the estimated amount of demand deposits held at
commercial banks by thrift institutions to service their OCD liabilities.
5. Consists of NOW and ATS balances at all depository institutions, credit
union share draft balances, and demand deposits at thrift institutions. Other
checkable deposits seasonally adjusted equals the difference between the seasonally adjusted sum of demand deposits plus OCD and seasonally adjusted demand
deposits. Included are all ceiling free "Super NOWs," authorized by the
Depository Institutions Deregulation committee to be offered beginning Jan. 5,
1983.
6. Sum of overnight RPs and overnight Eurodollars, money market fund
balances (general purpose and broker/dealer), MMDAs, and savings and small
time deposits, less the consolidation adjustment that represents the estimated
amount of demand deposits and vault cash held by thrift institutions to service
their time and savings deposits liabilities.
7. Sum of large time deposits, term RPs and term Eurodollars of U.S.
residents, money market fund balances (institution-only), less a consolidation
adjustment that represents the estimated amount of overnight RPs and Eurodollars held by institution-only money market funds.
8. Savings deposits exclude MMDAs.
9. Small-denomination time deposits—including retail RPs— are those issued
in amounts of less than $100,000. All individual retirement accounts (IRA) and
Keogh accounts at commercial banks and thrifts are subtracted from small time
deposits.
10. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
11. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
NOTE: Latest monthly and weekly figures are available from the Board's H.6
(508) release. Historical data are available from the Banking Section, Division of
Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Monetary and Credit Aggregates
1.22
A15
BANK DEBITS AND DEPOSIT TURNOVER
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
1984
Apr.
1
2
3
4
5
6
7
8
9
10
Demand deposits2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts3
Savings deposits4
11
12
13
14
IS
16
Demand deposits2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts3
MMDA5
Savings deposits4
June
July
Aug.
Sept.
Seasonally adjusted
DEBITS TO
Demand deposits2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts3
Savings deposits4
May
80,858.7
34,108.1
46,966.5
761.0
679.6
90,914.4
37,932.9
52,981.5
1,036.2
720.3
109,642.3
47,769.4
61,873.1
1,405.5
741.4
129.229.4
57,868.3
71,361.1
1,432.1
606.5
131,456.9
60,351.3
71,105.6
1,608.9
688.8
121,488.2
53,147.7
68,340.4
1,515.8
677.9
128,299.3
55,340.6
72,958.7
1,658.9
682.4
128,141.9
57,096.5
71,045.4
1,851.9
694.5
124.117.4
55,591.4
68,526.0
1,640.6
566.8
285.8
1,116.7
185.9
14.4
4.1
324.2
1,287.6
211.1
14.5
4.5
379.7
1,528.0
240.9
15.6
5.4
441.7
2,012.5
270.5
14.6
4.8
442.7
1,938.7
267.5
16.0
5.5
401.8
1,665.2
252.7
15.1
5.4
433.0
1,774.3
275.2
16.6
5.5
436.7
1,834.6
270.9
18.3
5.6
424.5
1,822.5
261.7
16.2
4.6
DEPOSIT TURNOVER
Not seasonally adjusted
DEBITS TO
81,197.9
34,032.0
47,165.9
737.6
91,031.8
38,001.0
53.030.9
1,027.1
672.9
720.0
286.4
1,114.2
186.2
14.0
325.0
1,295.7
211.5
14.4
4.1
4.5
109,517.6
47,707.4
64,310.2
1,397.0
567.4
742.0
121,514.4
53,514.4
68,000.0
1,670.1
918.9
665.7
132,521.7
60,214.5
72,307.2
1,599.0
883.6
673.8
128,522.3
57,168.1
71,354.3
1,621.7
894.8
686.2
124,604.3
54,060.5
70,543.8
1,598.5
891.7
686.3
133,844.2
59,743.8
74,100.3
1,629.4
888.2
680.3
120.120.8
54,329.0
65,791.8
1,523.7
821.6
543.1
379.9
1,510.0
240.5
15.5
2.8
5.4
410.8
1,770.2
256.0
16.4
3.8
5.2
456.8
1,997.1
278.1
16.1
3.6
5.3
428.6
1,792.0
266.3
16.2
3.7
5.5
418.1
1,738.1
264.3
16.0
3.7
5.4
465.7
2,008.0
287.6
16.4
3.7
5.5
408.9
1,786.4
249.8
15.2
3.4
4.5
DEPOSIT TURNOVER
Demand deposits2
17 All insured banks
18 Major New York City banks
19 Other banks
20 ATS-NOW accounts3
">1 MMDA5
22 Savings deposits4
1. Annual averages of monthly figures.
2. Represents accounts of individuals, partnerships, and corporations and of
states and political subdivisions.
3. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts authorized for automatic transfer to demand deposits (ATS). ATS data
availability starts with December 1978.
4. Excludes ATS and NOW accounts, MMDA and special club accounts, such
as Christmas and vacation clubs.
5. Money market deposit accounts.
NOTE. Historical data for demand deposits are available back to 1970 estimated
in part from the debits series for 233 SMSAs that were available through June
1977. Historical data for ATS-NOW and savings deposits are available back to
July 1977. Back data are available on request from the Banking Section, Division
of Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
These data also appear on the Board's G.6 (406) release. For address, see inside
front cover.
A16
1.23
DomesticNonfinancialStatistics • February 1985
LOANS AND SECURITIES
All C o m m e r c i a l
Banks'
Billions of dollars; averages of Wednesday figures
1982
1983
Dec.
Dec.
1984
1982
1983
Dec.
Dec.
1984
category
Aug.
Sept.
Oct.
Nov.
Seasonally adjusted
Aug.
Sept.
Oct.
Nov.
Not seasonally adjusted
1
Total loans and securities3-4
1,412.0
1,568.1
1,675.5
1,685.6
1,693.7
1,709.1
1,422.4
1,579.5
1,668.8
1,687.2
1,699.6
1,717.3
2
3
4
5
U.S. Treasury securities
Other securities4
Total loans and leases3-4
Commercial and industrial
loans4
Real estate loans4
Loans to individuals
Security loans
Loans to nonbank financial
institutions
Agricultural loans
Lease financing receivables...
All other loans
130.9
239.2
1,042.0
188.0
247.5
1,132.6
184.8
249.6
1,241.1
183.7
250.9
1,251.0
182.9
250.7
1,260.1
183.6
251.3
1,274.3
131.5
240.6
1,050.3
188.8
249.0
1,141.7
182.7
248.8
1,237.3
183.1
251.0
1,253.1
181.4
251.0
1,267.1
182.3
251.8
1,283.2
392.3
303.1
191.9
24.7
413.7
335.5
219.7
27.3
459.7
366.2
251.2
22.3
461.1
369.6
253.0
25.6
464.4
373.0
255.1
27.5
468.0
376.6
258.7
28.7
394.5
304.0
193.2
25.5
416.1
336.5
221.2
28.2
457.0
365.8
251.5
23.0
460.7
370.4
254.8
25.3
465.2
374.5
257.1
27.3
470.2
378.1
260.3
29.3
31.1
36.3
13.1
49.5
29.7
39.6
13.1
54.0
31.0
41.4
14.1
55.2
31.0
41.6
14.3
54.7
30.7
41.8
14.3
53.3
30.7
42.0
14.4
55.2
32.1
36.3
13.1
51.5
30.6
39.6
13.1
56.3
30.9
41.9
14.1
53.2
31.1
42.2
14.3
54.4
30.9
42.4
14.3
55.5
31.1
42.3
14.4
57.6
1,415.0
1,570.5
1,678.4
1,688.6
1,696.7
1,712.0
1,425.4
1,581.9
1,671.8
1,690.2
1,702.5
1,720.2
1,044.9
2.9
1,135.0
2.4
1,244.1
2.9
1,254.0
3.0
1,263.1
2.9
1.277.2
2.9
1,053.3
2.9
1,144.1
2.4
1,240.3
2.9
1,256.1
3.0
1,270.1
2.9
1,286.1
2.9
394.5
415.5
461.8
463.3
466.5
470.1
396.8
417.9
459.1
462.8
467.3
472.3
2.3
8.5
1.8
8.3
2.1
10.0
2.2
9.4
2.1
9.5
2.1
9.3
2.3
9.5
1.8
9.1
2.1
9.7
2.2
9.4
2.1
9.3
2.1
9.6
383.7
373.4
10.3
13.5
405.4
395.2
10.3
12.7
449.7
437.3
12.4
12.4
451.7
439.6
12.1
11.5
454.9
443.3
11.7
11.6
458.8
447.6
11.1
11.9
385.1
372.6
12.4
14.5
407.0
394.4
12.6
13.6
447.3
435.2
12.1
11.9
451.3
439.4
11.9
11.8
455.8
444.1
11.8
11.8
460.6
448.9
11.7
12.1
6
7
8
9
10
11
12
MEMO
13
Total loans and securities plus
loans sold3 4 5
14
15
16
Total loans plus loans sold3-4-5 ..
Total loans sold to affiliates 3 ....
Commercial and industrial loans
plus loans sold4-5
Commercial and industrial
loans sold5
Acceptances held
Other commercial and industrial loans
To U.S. addressees6
To non-U.S. addressees....
Loans to foreign banks
17
18
19
20
21
22
1. Includes domestically chartered banks; U.S. branches and agencies of
foreign banks. New York investment companies majority owned by foreign
banks, and Edge Act corporations owned by domestically chartered and foreign
banks.
2. Beginning December 1981, shifts of foreign loans and securities from U.S.
banking offices to international banking facilities (lBFs) reduced the levels of
several items. Seasonally adjusted data that include adjustments for the amounts
shifted from domestic offices to IBFs are available in the Board's G.7 (407)
statistical release (available from Publications Services, Board of Governors of
the Federal Reserve System, Washington, D.C. 20551).
3. Excludes loans to commercial banks in the United States.
4. Beginning Sept. 19, 1984, a reclassification of loans decreased commercial
and industrial loans and increased real estate loans by $200 million. Beginning
Sept. 26, 1984, a transfer of loans from Continental Illinois National Bank to the
FDIC reduced total loans and investments and total loans $1.9 billion, commercial
and industrial loans $1.4 billion, and real estate loans $.4 billion.
5. Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
6. United States includes the 50 states and the District of Columbia.
NOTE. Data are prorated averages of Wednesday estimates for domestically
chartered banks, based on weekly reports of a sample of domestically chartered
banks and quarterly reports of all domestically chartered banks. For foreignrelated institutions, data are averages of month-end estimates based on weekly
reports from large agencies and branches and quarterly reports from all agencies,
branches, investment companies, and Edge Act corporations engaged in banking.
These data also appear in the Board's G.7 (407) release. For address, see inside
front cover.
Commercial Banking Institutions
A17
1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS'
Monthly a v e r a g e s , billions of dollars
1982
1984
1983
Source
Dec.
1
2
3
4
5
6
Total nondeposit funds
Seasonally adjusted2
Not seasonally adjusted
Federal funds, RPs, and other
borrowings from nonbanks3
Seasonally adjusted
Not seasonally adjusted
Net balances due to foreign-related
institutions, not seasonally
adjusted
Loans sold to affiliates, not
seasonally adjusted4
Dec.
Jan.
Feb/
Mar/
Apr/
r
May
June'
July
Aug/
Sept/
Oct/
Nov.
96.3
99.6
100.3
102.5
98.2
99.3
103.7
105.2
108.1
109.6
111.8
113.0
116.9
121.2
105.5
108.4
106.1
106.5
109.8
112.4
113.0
113.8
115.8
116.7
121.8
125.4
140.8
144.1
140.7
142.8
139.4
140.4
142.8
144.3
141.9
143.3
142.3
143.5
142.4
146.7
136.8
139.6
137.5
137.8
142.7
145.3
145.0
145.8
145.8
146.8
151.2
154.9
-47.0
-42.7
-43.6
-41.6
-36.9
-33.6
-28.4
-33.9
-34.2
-35.8
-35.0
-33.0
-32.4
2.5
2.4
2.4
2.5
3.1
3.1
2.8
2.7
2.9
2.9
3.0
2.9
2.9
-43.0
76.5
33.6
-39.8
75.3
35.5
-38.8
73.2
34.5
-37.7
72.2
34.5
-34.9
73.8
38.9
-33.2
73.6
40.4
-29.9
73.5
43.6
-32.9
73.8
40.9
-33.1
71.2
38.1
-35.0
72.8
37,8
-35.1
71.4
36.3
-34.1
69.7
35.7
-32.6
68.3
35.7
-4.0
53.5
49.5
-3.0
54.1
51.1
-4.8
53.4
48.6
-3.9
51.3
47.3
-1.9
50.2
48.3
-0.4
49.6
49.2
1.6
49.8
51.4
-1.0
50.8
49.8
-1.1
52.0
50.9
-0.8
51.8
51.0
0.1
51.8
51.9
1.0
50.9
51.9
0.2
50.7
50.9
83.3
84.6
84.8
85.1
85.5
84.6
86.9
86.5
85.5
85.1
86.9
86.2
84.0
86.4
79.0
80.0
79.9
78.4
82.7
83.4
84.2
83.1
85.9
84.9
89.6
91.3
12.0
7.5
13.1
10.8
16.5
19.6
20.6
22.3
16.7
17.5
15.9
16.5
12.2
12.8
12.9
12.3
11.7
11.8
12.7
10.3
16.5
17.5
8.3
11.0
17.0
10.4
280.7
283.0
283.1
288.1
284.4
287.1
283.8
285.0
289.2
288.8
292.4
288.7
302.9
298.8
312.8
307.7
315.8
311.7
313.4
314.3
312.8
315.4
317.9
320.6
318.4
321.1
MEMO
7 Domestically chartered banks' net
positions with own foreign
branches, not seasonally
adjusted5
8 Gross due from balances
9 Gross due to balances
10 Foreign-related institutions' net
positions with directly related
institutions, not seasonally
adjusted6
11 Gross due from balances
12 Gross due to balances
Security RP borrowings
13 Seasonally adjusted'
14 Not seasonally adjusted
U.S. Treasury demand balances8
15. Seasonally adjusted
16 Not seasonally adjusted
Time deposits, $100,000 or more9
17 Seasonally adjusted
18 Not seasonally adjusted
1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus agencies and branches of foreign banks. New
York investment companies majority owned by foreign banks, and Edge Act
corporations owned by domestically chartered and foreign banks.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from
nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates.
Includes averages of Wednesday data for domestically 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. Averages of daily figures for member and nonmember banks.
6. Averages of daily data.
7. Based on daily average data reported by 122 large banks.
8. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
9. Averages of Wednesday figures.
NOTE. These data also appear in the Board's G. 10 (411) release. For address see
inside front cover.
A18
1.25
DomesticNonfinancialStatistics • February 1985
ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Billions of dollars except for number of banks
Last-Wednesday-of-Month Series
1983
1982
Account
Dec.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
DOMESTICALLY CHARTERED
COMMERCIAL BANKS'
1
2
3
4
5
6
Loans and securities, excluding
interbank
Loans, excluding interbank
Commercial and industrial
Other
U.S. Treasury securities
Other securities
1,370.3
1,000.7
356.7
644.0
129.0
240.5
1,392.2
1,001.7
358.0
643.7
150.6
239.9
1,403.8
1,005.1
357.9
647.2
155.5
243.3
1,411.9
1,007.5
356.7
650.8
160.9
243.5
1,435.1
1,025.6
360.1
665.6
166.0
243.5
1,437.4
1,029.1
361.1
668.0
165.1
243.3
1,457.0
1,043.4
363.0
680.4
167.5
246.1
1,466.1
1,049.7
364.0
685.7
171.2
245.2
1,483.0
1,060.3
367.0
693.3
176.8
245.9
1,502.3
1,075.5
372.8
702.7
180.4
246.4
1,525.2
1,095.1
380.8
714.4
181.4
248.7
184.4
23.0
25.4
67.6
68.4
168.9
19.9
20.5
67.1
61.5
170.1
20.4
23.9
66.1
59.6
164.5
20.3
22.4
65.6
56.3
176.9
21.3
18.8
69.7
67.1
168.7
20.7
20.6
67.1
60.3
176.9
21.0
22.5
69.0
64.4
160.0
20.8
15.4
66.7
56.9
164.0
20.5
19.7
67.1
56.6
179.0
22.3
17.6
70.9
69.0
190.5
23.3
18.6
75.6
73.0
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
265.3
257.9
252.4
248.3
253.2
254.5
257.2
252.3
253.0
261.9
253.8
13
Total assets/total liabilities and capital . . .
1,820.0
1,818.9
1,826.3
1,824.8
1,865.2
1,860.6
1,891.0
1,878.4
1,900.0
1,943.9
1,969.5
14
15
16
17
Deposits
Demand
Savings
Time
1,361.8
363.9
296.4
701.5
1,374.2
333.4
419.2
621.6
1,368.0
329.2
426.9
611.9
1,370.8
324.5
440.2
606.1
1,402.7
344.4
445.3
613.1
1,396.5
334.2
447.5
614.8
1,420.1
344.7
449.0
626.4
1,408.1
328.1
448.8
631.2
1,419.5
331.3
451.5
636.8
1,459.2
358.1
458.3
642.8
1,482.6
371.0
460.7
650.8
18
19
20
Borrowings
Other liabilities
Residual (assets less liabilities)
215.1
109.2
133.8
211.3
103.5
130.0
224.0
102.3
132.0
214.1
104.7
135.1
221.2
104.3
137.0
217.5
105.5
141.0
217.2
107.6
146.1
217.8
107.1
145.4
226.8
106.5
147.2
219.7
112.6
152.4
216.3
117.9
152.8
10.7
14,787
9.6
14,819
17.8
14,823
2.7
14,817
19.3
14,826
19.3
14,785
14.8
14,795
20.8
14,804
22.5
14,800
2.8
14,799
8.8
14,796
1,429.7
1,054.8
395.3
659.5
132.8
242.1
1,451.3
1,054.5
395.9
658.6
155.3
241.5
1,460.8
1,055.7
393.5
662.2
160.2
244.9
1,467.6
1,056.4
391.7
664.7
166.1
245.2
1,491.5
1,075.2
395.3
679.9
171.3
245.1
1,494.1
1,078.8
397.7
681.2
170.3
245.0
1,515.4
1,094.9
400.6
694.3
172.7
247.8
1,525.4
1,102.5
402.7
699.8
176.1
246.9
1,541.8
1,112.2
405.3
706.8
182.0
247.7
1,563.2
1,129.2
412.0
717.2
185.9
248.1
1,586.8
1,149.3
420.1
729.2
186.9
250.6
200.7
23.0
26.8
81.4
69.4
185.5
19.9
22.0
81.0
62.6
186.3
20.4
25.4
79.8
60.7
180.3
20.3
23.8
78.9
57.3
193.5
21.3
20.0
84.0
68.2
185.2
20.7
21.9
81.2
61.4
193.3
21.1
24.0
82.8
65.4
174.7
20.9
16.6
79.3
58.0
178.4
20.5
20.8
79.5
57.6
195.0
22.3
19.1
83.6
70.0
205.0
23.4
19.7
88.0
74.0
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 securities, 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
341.7
325.4
317.8
309.5
318.1
318.7
324.6
320.9
318.8
329.7
321.3
35
Total assets/total liabilities and capital . . .
1,972.1
1,962.2
1,964.9
1,957.4
2,003.2
1,998.0
2,033.3
2,021.0
2,039.1
2,088.0
2,113.1
36
37
38
39
Deposits
Demand
Savings
Time
1,409.7
376.2
296.7
736.7
1,419.5
345.7
419.7
654.1
1.411.0
341.1
427.3
642.6
1,413.1
336.4
440.7
636.0
1,443.8
356.4
445.7
641.6
1,438.1
346.4
448.0
643.8
1,461.4
356.6
449.5
655.3
1,448.9
340.0
449.3
659.5
1,459.0
343.2
452.0
663.8
1,499.4
369.9
458.8
670.6
1,524.8
383.2
461.3
680.4
40
41
42
Borrowings
Other liabilities
Residual (assets less liabilities)
278.3
148.4
135.7
269.9
141.1
131.9
281.3
138.6
133.9
269.5
137.9
137.0
278.2
142.3
138.9
277.9
139.1
142.9
280.5
143.4
148.0
282.6
142.3
147.3
289.6
141.5
149.1
282.5
151.9
154.2
275.1
158.6
154.7
10.7
15,329
9.6
15,376
17.8
15,390
2.7
15.385
19.3
15,396
19.3
15.359
14.8
15,370
20.8
15,382
22.5
15,383
2.8
15,382
8.8
15,380
23
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 estimates made on the last Wednesday of the
month based on a weekly reporting sample of foreign-related institutions and
quarter-end condition report data.
Weekly Reporting Commercial Banks
1.26
A19
ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1.4 Billion or More on
December 31, 1982, Assets and Liabilities
Millions of dollars, Wednesday figures
1984
Account
1 Cash and balances due from depository
institutions
2 Total loans, leases and securities, net
Securities
3 U.S. Treasury and government agency
4 Trading account
5 Investment account, by maturity
6
One year or less
7
Over one through five years
8
Over five years
9 Other securities
10 Trading account
11 Investment account
12
States and political subdivisions, by maturity
13
One year or less
14
Over one year
15
Other bonds, corporate stocks, and securities
16 Other trading account assets
Loans and leases
17 Federal funds sold1
18 To commercial banks
19 To nonbank brokers and dealers in securities
?0 To others
71 Other loans and leases, gross2
22 Other loans, gross2
73
Commercial and industrial2
24
Bankers acceptances and commercial paper
?5
All other
26
U.S. addressees
77
Non-U.S. addressees
78
Real estate loans2
29
To individuals for personal expenditures
30
To depository and financial institutions
31
Commercial banks in the United States
32
Banks in foreign countries
33
Nonbank depository and other financial institutions.
34
For purchasing and carrying securities
35
To finance agricultural production
36
To states and political subdivisions
37
To foreign governments and official institutions . . . .
38
All other
39 Lease financing receivables
40 LESS: Unearned income
Loan and lease reserve2
41
42 Other loans and leases, net2
43 All other assets
44 Total assets
Deposits
45 Demand deposits
46 Individuals, partnerships, and corporations
47
States and political subdivisions
48
U.S. government
49 Depository institutions in United States
50 Banks in foreign countries
51
Foreign governments and official institutions
52 Certified and officers' checks
53 Transaction balances other than demand deposits
(ATS, NOW, Super NOW, telephone transfers)..
54 Nontransaction balances
55 Individuals, partnerships and corporations
56 States and political subdivisions
57 U.S. government
58 Depository institutions in the United States
59 Foreign governments, official institutions and banks ..
60 Liabilities for borrowed money
61 Borrowings from Federal Reserve Banks
62 Treasury tax-and-loan notes
63 All other liabilities for borrowed money3
64 Other liabilities and subordinated note and debentures
65 Total liabilities
66 Residual (total assets minus total liabilities)4
r
Oct. 24'
Oct. 3K
Nov. l
Nov. 14
Nov. 21
Nov. 28
Dec. 5
Dec. 12
Dec. 19
80,443
783,915
87,266
797,608
95,361
799,662
98,498
799,343
90,825
799,883
90,183
792,011
90,606
808,881
91,223
800,013
96,008
815,741
73,994
10,708
63,285
18,215
32,296
12,774
47,737
4,640
43,097
39,048
4,598
34,449
4,049
2,769
79,042
15,158
63,884
18,296
32,826
12,763
47,412
4,522
42,890
38,884
4,587
34,297
4,005
2,860
77,728
13,875
63,853
18,752
32,379
12,722
46,604
3,958
42,646
38,538
4,506
34,031
4,108
3,182
77,699
13,870
63,829
18,477
32,608
12,744
46,826
4,342
42,484
38,474
4,455
34,019
4,010
3,763
78,287
14,599
63,688
18,054
33,151
12,484
47,160
4,722
42,438
38,332
4,394
33,937
4,106
3,602
78,532
14,762
63,770
17,949
33,206
12,614
46,464
3,949
42,515
38,302
4,343
33,959
4,213
3,211
81,143
16,592
64,551
18,365
32,986
13,200
46,132
3,694
42,437
38,203
4,254
33,949
4,234
2,908
79,281
14,886
64,394
18,639
32,527
13,228
46,384
3,828
42,555
38,319
4,334
33,985
4,236
2,875
78,894
14,597
64,298
19,172
31,800
13,325
47,048
4,331
42,718
38,328
4,403
33,925
4,389
2,677
51,442
36,594
10,158
4,691
623,472
611,197
246,556
3,343
243,213
236,852
6,361
156,260
106,198
37,810
8,228
5,915
23,666
13,854
7,272
25,827
4,344
13,076
12,274
5,172
10,326
607,974
133,710
998,068
54,283
38,387
10,965
4,931
629,616
617,304
247,651
3,883
243,768
237,394
6,375
156,860
106,767
39,401
9,016
6,032
24,352
15,038
7,225
25,997
4,419
13,946
12,311
5,184
10,421
614,011
140,155
1,025,029
55,697
38,578
11,123
5,996
632,135
619,810
249,672
3,860
245,811
239,419
6,393
156,927
107,001
39,784
9,060
6,154
24,570
14,918
7,199
26,228
4,374
13,708
12,324
5,138
10,547
616,449
136,969
1,031,991
53,208
36,474
11,356
5,378
633,540
621,226
249,087
3,914
245,173
238,803
6,369
157,572
107,227
40,742
9,586
6,614
24,542
13,982
7,241
26,373
4,363
14,638
12,314
5,126
10,568
617,847
132,132
1,029,974
52,429
36,056
11,888
4,484
634,077
621,737
249,262
4,320
244,942
238,606
6,336
157,706
107,553
39,991
9,452
6,323
24,216
14,361
7,234
26,622
4,416
14,592
12,341
5,122
10,550
618,405
132,446
1,023,155
48,116
32,647
10,681
4,788
631,430
619,055
248,419
4,055
244,364
238,015
6,349
158,126
108,182
39,578
9,286
6,092
24,200
12,606
7,205
26,583
4,198
14,158
12,375
5,125
10,619
615,686
131,898
1,014,092
56,112
37,955
12,033
6,124
638,386
625,947
249,714
4,353
245,361
239,010
6,351
158,363
109,109
40,686
9,562
6,750
24,373
15,067
7,158
26,698
4,506
14,645
12,439
5,075
10,725
622,586
138,513
1,038,000
49,430
32,158
11,947
5,325
637,884
625,462
248,490
4,209
244,281
238,040
6,241
159,002
109,895
40,742
9,798
6,367
24,577
15,022
7,191
26,904
4,252
13,964
12,422
5,094
10,747
622,043
132,896
1,024,132
54,708
37,961
11,621
5,126
648,278
635,770
250,6%
3,810
246,886
240,686
6,200
159,281
111,065
41,551
10,348
6,101
25,102
19,064
7,235
27,570
4,217
15,092
12,508
5,112
10,754
632,412
134,790
1,046,538
175,726
132,896
4,592
2,638
21,080
6,001
895
7,624
184,939
141,373
4,901
1,389
21,033
6,470
916
8,856
188,091
142,587
5,134
2,152
21,240
6,783
897
9,299
194,664
149,288
4,800
1,705
23,038
6,653
940
8,239
180,969
139,217
5,072
1,423
20,472
6,225
916
7,645
179,990
138,781
4,781
1,041
20,985
6,097
805
7,500
191,950
145,067
4,877
3,778
22,181
6,488
906
8,653
185,342
142,642
4,742
2,375
20,588
6,140
978
7,878
193,944
145,114
5,409
3,724
22,746
6,412
741
9,7%
32,356
443,822
410,096
21,856
358
8,350
3,161
185,217
4,620
7,093
173,505
91,415
928,535
69,533
32,998
443,875
410,105
21,580
463
8,472
3,255
200,540
4,550
14,203
181,788
92,807
955,160
69,869
34,194
444,655
411,029
21,226
464
8,593
3,342
204,682
11,739
3,972
188,971
90,308
961,930
70,061
33,340
444,280
410,544
21,290
515
8,527
3,404
196,082
4,639
4,746
186,697
91,560
959,927
70,047
33,135
446,231
412,284
21,335
497
8,732
3,382
199,365
6,328
4,582
188,455
93,398
953,099
70,055
32,668
446,042
412,111
21,393
473
8,652
3,412
190,904
3,250
3,460
184,194
94,714
944,317
69,774
34,870
448,910
415,243
21,150
378
8,495
3,643
196,998
4,810
2,643
189,545
94,631
34,136
449,351
415,206
21,387
391
8,748
3,620
188,765
2,910
1,870
183,985
95,976
953,570
70,562
34,305
452,284
417,694
21,753
407
8,857
3,573
198,137
3,300
11,183
183,654
97,433
976,103
70,436
1. Includes securities purchased under agreements to resell.
2. Levels of major loan items were affected by the Sept. 26, 1984 transaction
between Continental Illinois National Bank and the Federal Deposit Insurance
Corporation. For details see the H.4.2 statistical release dated Oct. 5, 1984.
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.
r
967,359
70,641
4. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.
NOTE. These data also appear in the Board's H.4.2 (504) release. For address,
see inside front cover.
A20
1.28
DomesticNonfinancialStatistics • February 1985
LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, W e d n e s d a y
figures
1984
Account
Oct. 31
Nov. 7
Nov. 14
Nov. 21
Nov. 28
19,651
165,793
21,726
171,620
25,886
170,813
23,800'
169,644'
20,576
171,040
22,724
168,329
22,892
172,836
23,196
170,015
24,347
176,671
9,408
1,525
6,468
1,416
9,844
1,532
6,836
1,475
9,482
1,560
6,506
1,416
9,428
1,540'
6,452'
1,436
9,420
1,500
6,684
1,236
9,200
1,496
6,445
1,259
10,057
1,522
6,517
2,017
9,878
1,761
6,121
1,996
9,604
1,985
5,550
2,068
9,709'
8,938'
1,418
7,520r
770
9,436'
8,661'
1,315
7,346'
775
9,364'
8,584'
1,281
7,303'
780
9,291'
8,524'
1,218
7,306'
767
9,180
8,410
1,198
7,212
770
9,142
8,338
1,124
7,214
804
9,155
8,334
1,120
7,214
821
9,189
8,340
1,114
7,226
849
9,179
8,344
1,150
7,195
834
16,180
8,926
4,689
2,565
135,155'
132,978r
64,288
598
63,690
62,672
1,018
23,356
15,359
11,225
1,116
2,153
7,956
6,523
386
7,739'
808
3,294
2,177
1,488
3,171
130,496'
64,419
249,863
19,757
12,237
4,970
2,550
137,220'
135,042'
64,021
644
63,377
62,351
1,026
23,597
15,451
11,701
1,582
2,095
8,023
7,792
364
7,719'
918
3,480
2.178
1,472
3,165
132,583'
71,134
264,480
19,365
11,359
4,973
3,033
137,284'
135,112'
64,437
576
63,861
62,798
1,063
23,567
15,498
11,753
1,403
2,222
8,127
7,414
364
7,786'
875
3,418
2,173
1,467
3,215
132,602'
69,303
266,003
17,735
9,603
5,338
2,794
137,892'
135,718'
64,290
590
63,700
62,598
1,102
23,781
15,543
12,641
1,957
2,558
8,126
6,649
353
7,828'
880'
3.752
2,173
1,474
3,229
133,189'
65,534'
258,978'
18,956
10,516
5,992
2,448
138,209
136,033
63,794
679
63,116
62,029
1,087
23,853
15,619
12,195
1,869
2,332
7,994
7,464
374
7,910
948
3,877
2,176
1,483
3,243
133,483
66,594
258,210
18,520
10,052
5,478
2,990
136,204
134,006
63,456
633
62,823
61,761
1,062
23,891
15,669
12,113
1,968
2,225
7,920
6,080
391
7,808
760
3,838
2,198
1,484
3,252
131,467
67,484
258,538
19,087
9,299
6,283
3,505
139,286
137,092
64,033
685
63,348
62,275
1,073
23,974
15,810
12,776
2,076
2,690
8,010
7,478
384
7,927
992
3,718
2,194
1,458
3,290
134,538
72,459
268,188
18,097
9,426
6.033
2,638
137,599
135,409
63,134
481
62,652
61,640
1,012
24,318
15,931
11,997
1,785
2,312
7,901
7,380
389
7,925
789
3,544
2,190
1,465
3,283
132,851
66,639
259,850
20,163
11,067
6,195
2,901
142,491
140,296
63,856
429
63,427
62,463
964
24,239
16,087
12,343
1,857
2,215
8,271
10,319
385
8,101
744
4,221
2,195
1,478
3,289
137,724
69,325
270,343
45,249
30,012
667
490
5,112
4,740
612
3,616
48,564
32,744
578
196
4,935
5,213
673
4,224
49,054
32,641
722
288
4,650
5,429
631
4,692
50,400'
34,687'
672
244
5,079'
5,354'
681'
3,682
44,528
30,555
772
207
4,304
4,990
673
3,025
47,117
32,146
699
167
5,432
4,742
502
3,428
49,011
32,731
791
780
4,629
5,194
706
4,179
47,353
32.026
701
501
4,795
4,839
765
3,726
51,072
33,586
770
683
5,311
5,185
555
4,981
3,472
81,358
73,018
4,313
30
2,245
1,752
58,700
400
1,791
56,508
38,353
227,132
22,731
3,493
81,874
73,388
4.315
29
2,321
1.821
67,882
800
3,628
63,454
39,847
241,659
22,821
3,679
81,944
73,407
4,209
29
2,389
1,909
70,070
4,432
890
64,748
38,367
3,557'
81,937
73,452
4.101
84
2,345
1,955
60,724
3,556
82,842
74,354
4,043
68
2,441
1,936
63,462
2,325
1,029
60,108
40,864
3,520
82,283
73,830
3,960
30
2,497
1,967
61,497
3,723
83,507
74,749
4,109
37
2,460
2,153
66,875
1,375
644
64,856
41,982
245,099
3,678
82,914
74,058
4,176
50
2,533
2,097
60,766
3,711
83,825
74,900
4,326
46
2,523
2,030
65,959
2 225
2,961
60.773
42,841
Oct. 24
1 Cash and balances due from depository institutions . . . .
2 Total loans, leases and securities, net1
Securities
3
4
5 Investment account, by maturity
6
One year or less
7
Over one through five years
8
Over five years
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
Investment account
States and political subdivisions, by maturity
One year or less
Over one year
Other bonds, corporate stocks and securities
Loans and leases
Federal funds sold3
To commercial banks
To nonbank brokers and dealers in securities
To others
Other loans and leases, gross
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
Real estate loans
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions.
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions . . . .
All other
Lease financing receivables
LESS: Unearned income
Loan and lease reserve
Other loans and leases, net
All other assets4
Total assets
Deposits
Demand deposits
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Transaction balances other than demand deposits
ATS, NOW, Super NOW, telephone transfers) ..
Nontransaction balances
Individuals, partnerships and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Foreign governments, official institutions and banks ..
Liabilities for borrowed money
54
55
56
57
58
59
60
61
62 Treasury tax-and-loan notes
63 All other liabilities for borrowed money5
64 Other liabilities and subordinated note and debentures..
65 Total liabilities
66 Residual (total assets minus total liabilities)6
1. Excludes trading account securities.
2. Not available due to confidentiality.
3. Includes securities purchased under agreements to resell.
4. Includes trading account securities.
5. Includes federal funds purchased and securities sold under agreements to
repurchase.
243,114
22,889
1,355
59,369
39,410'
236,029'
22,949
235,251
22,959
796
60,701
41,375
235,792
22,746
Dec. 5
23,088
Dec. 12
366
60,400
42,095
236,806
23,044
Dec. 19
247,408
22,935
6. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
NOTE. These data also appear in the Board's H.4.2 (504) release. For address,
see inside front cover.
Weekly Reporting Commercial Banks
1.29
LARGE WEEKLY REPORTING COMMERCIAL BANKS
Millions of dollars, W e d n e s d a y
A21
Balance Sheet Memoranda
figures
1984
Account
Oct. 24'
Oct. 31'
Nov. 7'
754,592
630,092
160,729
3,001
2,152
849
154,583
765,810
636,496
159,206
2,817
1,972
845
155,962
767,708
640,193
158,610
2,892
2,045
847
157,073
768,977
640,689
158,290
2,911
2,062
850
157,654
770,047
640,998
159,097
2,987
2,145
842
158,885
765,821
637,613
158,379
2,953
2,090
863
159,358
160,410
141,293
34,178
162,438
143,158
33,835
162,734
143,888
33,916
162,786
144,067
33,857
163,382
144,781
34,475
161,046
142,704
33,948
Nov. 14'
Nov. 21
Nov. 28
Dec. 5
Dec. 12
Dec. 19
777,164
646,980
158,641
2,874
2,064
811
161,746
773,898
645,358
159,050
2,880
2,020
860
161,790
783,298
654,678
160,646
2,883
2,031
851
163,220
166,210
146,998
34,345
163,551
144,484
34,227
168,513
149,730
34,553
BANKS WITH ASSETS OF $ 1 . 4 BILLION OR MORE
1
2
3
4
5
6
7
Total loans and leases (gross) and investments adjusted1
Total loans and leases (gross) adjusted' 2
Time deposits in amounts of $100,000 or more
Loans sold outright to affiliates—total3
Commercial and industrial
Other
Nontransaction savings deposits (including MMDAs)...
BANKS IN N E W YORK CITY
8 Total loans and leases (gross) and investments adjusted1'4 ..
9 Total loans and leases (gross) adjusted1
10 Time deposits in amounts of $100,000 or more
1. Exclusive of loans and federal funds transactions with domestic commercial
banks.
2. Levels of major loan items were affected by the Sept. 26, 1984 transaction
between Continental Illinois National Bank and the Federal Deposit Insurance
Corporation. For details see the H.4.2 statistical release dated Oct. 5, 1984.
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.
NOTE. These data also appear in the Board's H.4.2 (504) release. For address,
see inside front cover.
A22
1.30
DomesticNonfinancialStatistics • February 1985
LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS WITH ASSETS OF
$750 MILLION OR MORE ON JUNE 30, 1980 Assets and Liabilities •
Millions of dollars, Wednesday figures
1984
Account
Oct. 24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Cash and due from depository institutions.
Total loans and securities
U.S. Treasury and govt, agency securities
Other securities
Federal funds sold1
To commercial banks in the United States
To others
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial
paper
All other
U.S. addressees
Non-U.S. addressees
To financial institutions
Commercial banks in the United States .
Banks in foreign countries
Nonbank financial institutions
To foreign govts, and official institutions. .
For purchasing and carrying securities..
All other
Other assets (claims on nonrelated parties). .
Net due from related institutions
Total assets
Deposits or credit balances due to other
than directly related institutions....
Credit balances
Demand deposits
Individuals, partnerships, and
corporations
Other
Time and savings deposits
Individuals, partnerships, and
corporations
Other
Borrowings from other than directly
related institutions
Federal funds purchased2
From commercial banks in the
United States
From others
Other liabilities for borrowed money.. ..
To commercial banks in the
United States
To others
Other liabilities to nonrelated parties
Net due to related institutions
Total liabilities
Oct. 31
Nov. 7
Nov. 14
Nov. 21
Nov. 28
Dec. 5
Dec. 12
Dec. 19
6,221
47,427
4,306
1,058
4,081
3,778
303
37,982
21,260
6,319
43,817
4,337
1,189'
2,656
2,324
332
35,636'
19,606'
6.848'
43,992
4,336
1,201'
3,059
2,726
333
35,396'
19,346'
6,530
43.102
4,233
1,280'
3,072
2,718
354
34,517'
19,394'
6,884
43,954
3,991
1,239
3,841
3,575
266
34,883
19,585
6,669
43,857
3,890
1,263
4,336
4,065
271
34,367
19,298
6,884
42,513
4,176
1,278
3,112
2,824
289
33,947
19,188
6,468
42,402
4,185
1,273
2,808
2,488
319
34,136
19,391
6,884
44,095
4,053
1,272
3,378
2,978
400
35,391
20,174
3,002
18,257'
16,618'
1,639
13,106
10,573
1,481
1,052
715
904
1,998
18,873
9,580
82,102
1,380
18,227'
16,765'
1,462
12,166
9,515
1,523
1,127
712
1,130
2,021
18,746'
10.099
78,981'
1,358
17,987'
16,506'
1,481
12,334
9,718
1,493
1,124
714
978
2,023
18,393'
11,201
80,433'
1,304
18.090'
16,666'
1,423
11,486
9,049
1,519
918
705
918
2,014
18,360
10,245
78,237
1,380
18,205
16,781
1,424
11,496
9,070
1,508
919
699
1,038
2,063
19,204
9,920
79,962
1,221
18,077
16,702
1,375
11,361
8,971
1,500
890
693
958
2,057
19,506
8,709
78,741
1,493
17,695
16,344
1,351
11,115
8,614
1,519
981
686
922
2,035
19,119
10,098
78,614
1,480
17,911
16,609
1,302
10,738
8,293
1,540
905
690
1,285
2,032
19,371
10,301
78,542
1,445
18,729
17,434
1,295
11,087
8,239
1,580
1,268
711
1,416
2,004
19,169
10,487
80,634
21,293
148
1,554
21,726'
215
1,716'
22,099
130
1,752
22,394'
153
1,750'
22,473
122
1,667
22,420
128
1,578
23,436
130
1,791
24,075
183
1,731
24,386
141
1,732
840
714
19,590
867'
849
19,794
924
828
20,217
914'
835
20,491
852
815
20,685
834
743
20,714
885
906
21,514
901
830
22,162
892
840
22,513
16,262
3,328
16,413
3,382
16,570
3,647
16,891
3,599
17,050
3,635
17,073
3,641
17,520
3,994
18,286
3,876
18,663
3,851
33,224
10,524
29,554
10,777
30,338
11,558
28,309
10,579
28,342
10,034
26,568
8,553
28,887
10,525
26,771
8,781
28,964
10,689
7,845
2,679
22,700
8,644
2,133
18,777
9,266
2.291
18,780
8,118
2,461
17,730
7,841
2,192
18,308
6,424
2,130
18,015
8,804
1,720
18,362
7,095
1,686
17,990
8,598
2,091
18,274
19,120
3,580
19,295
8,290
82,102
17,248
1,529
19,858
7,843
78,981'
17,128
1,652
19,574'
8,423'
80,433'
16,106
1.624
19,320
8,214'
78.237
16,635
1,674
20,174
8,973
79,962
16,319
1,696
20,541
9,211
78,741
16,581
1,781
20,101
6,189
78,614
16,235
1,754
20,344
7,352
78,542
16,445
1,830
20,457
6,828
80,634
33,076
27,712
31,978
26,452'
31,548
26,011'
31.335
25,823'
31,309
26,079
30,821
25,668
31,074
25,621
31,621
26,163
32,877
27,552
MEMO
42 Total loans (gross) and securities adjusted3
43 Total loans (gross) adjusted3
• Levels of many asset and liability items were revised beginning Oct. 31,
1984. For details, see the H.4.2 (504) statistical release dated Nov. 23, 1984.
1. Includes securities purchased under agreements to resell.
2. Includes securities sold under agreements to repurchase.
3. Exclusive of loans to and federal funds sold to commercial banks in the
United States.
NOTE. These data also appear in the Board's H.4.2 (504) release. For address,
see inside front cover.
Weekly Reporting Commercial Banks
1.31
A23
GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations'
Billions of dollars, estimated daily-average balances
Commercial banks
Type of holder
19792
Dec.
1980
Dec.
1981
Dec.
1983
1982
Dec.
June
Sept.
1984
Dec.
Mar.
June
Sept.
1 All holders—Individuals, partnerships, and
corporations
302.3
315.5
288.9
291.8
281.9
280.3
293.5
279.3
285.8
284.3
2
3
4
5
6
27.1
157.7
99.2
3.1
15.1
29.8
162.8
102.4
3.3
17.2
28.0
154.8
86.6
2.9
16.7
35.4
150.5
85.9
3.0
17.0
34.6
146.9
80.3
3.0
17.2
32.1
150.2
77.9
2.9
17.1
32.8
161.1
78.5
3.3
17.8
31.7
150.3
78.1
3.3
15.9
31.7
154.9
78.3
3.4
17.4
31.9
154.7
77.2
3.3
17.3
Financial business
Nonfinancial business
Consumer
Foreign
Other
Weekly reporting banks
19793
Dec.
1980
Dec.
1981
Dec.
1983
1982
Dec.
June
7 AH holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
Dec.4
Mar.
June
Sept.
139.3
147.4
137.5
144.2
139.6
136.3
146.2
139.2
145.3
145.6
20.1
74.1
34.3
3.0
7.8
21.8
78.3
35.6
3.1
8.6
21.0
75.2
30.4
2.8
8.0
26.7
74.3
31.9
2.9
8.4
26.1
72.8
28.5
2.8
9.3
23.6
72.9
28.1
2.8
8.9
24.2
79.8
29.7
3.1
9.3
23.5
76.4
28.4
3.2
7.7
23.6
79.7
29.9
3.2
8.9
23.7
79.4
30.0
3.2
9.3
1. Figures include cash items in process of collection. Estimates of gross
deposits are based on reports supplied by a sample of commercial banks. Types of
depositors in each category are described in the June 1971 BULLETIN, p. 466.
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.
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
Sept.
1984
exceeding $750 million as of Dec. 31, 1977. 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.
4. In January 1984 the weekly reporting panel was revised; it now includes 168
banks. Beginning with March 1984. estimates are constructed on the basis of 92
sample banks and are not comparable with earlier data. Estimates in billions of
dollars for December 1983 based on the newly weekly reporting panel are:
financial business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1;
other, 9.5.
A24
DomesticNonfinancialStatistics • February 1985
1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
19843
1979'
Dec.
Instrument
1980
Dec.
1981
Dec.
1982
Dec. 2
1983
Dec.
May
June
July
Aug.
Sept.
Oct.
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
2
3
4
5
6
Financial companies4
Dealer-placed paper5
Total
Bank-related (not seasonally
adjusted)
Directly placed paper6
Total
Bank-related (not seasonally
adjusted)
Nonfinancial companies7
112,803
124,374
165,829
166,670
188,057
214,431
218,898
221,431
222,448
226,474
227,960
17,359
19,599
30,333
34,634
44,943
50,355
51,101
51,157
52,695
54,283
53,388
2,784
3,561
6,045
2,516
2,441
1,696
1,944
1,799
2,010
1,959
2,060
64,757
67,854
81,660
84,130
96,548
110,791
109,026
109,076
108,109
107,206
104,655
17,598
30,687
22,382
36,921
26,914
53,836
32,034
47,906
35,566
46,566
46,338
53,285
43,960
58,771
45,090
61,198
43,665
61,644
41,066
64,985
38,112
69,917
Bankers dollar acceptances (not seasonally adjusted)8
7 Total
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others
Basis
14 Imports into United States
15 Exports from United States
16 All other
8
9
10
11
12
13
45,321
54,744
69,226
79,543
78,309
79,530
82,067
80,957
79,779
77,928
75,736
9,865
8,327
1,538
10,564
8,963
1,601
10,857
9,743
1,115
10,910
9,471
1,439
9.355
8.125
1,230
9,927
8,422
1,504
10,877
9,354
1,523
10,708
8,854
1,853
10,743
8,823
1,920
11,065
8,729
2,336
11,444
9,018
1,426
704
1,382
33,370
776
1,791
41,614
195
1,442
56,731
1,480
949
66,204
418
729
68,225
426
679
68,924
0
697
70,493
0
611
69,639
0
632
68,404
0
686
66,177
0
658
63,635
10,270
9,640
25,411
11,776
12,712
30,257
14,765
15,400
39,060
17,683
16,328
45,531
15,649
16,880
45,781
16,687
15,938
46.906
17,301
16,421
48,345
17,947
15,485
47,525
17,647
15,871
46,260
17,196
15,985
44,746
16,141
16,442
0
1. A change in reporting instructions results in offsetting shifts in the dealerplaced and directly placed financial company paper in October 1979.
2. Effective Dec. 1, 1982, there was a break in the commercial paper series. The
key changes in the content of the data involved additions to the reporting panel,
the exclusion of broker or dealer placed borrowings under any master note
agreements from the reported data, and the reclassification of a large portion of
bank-related paper from dealer-placed to directly placed.
3. Correction of a previous misclassification of paper by a reporter has created
a break in the series beginning December 1983. The correction adds some paper to
nonfinancial and to dealer-placed financial paper.
4. Institutions engaged primarily in activities such as, but not limited to,
commercial, savings, and mortgage banking; sales, personal, and mortgage
1.33
financing; factoring, finance leasing, and other business lending; insurance
underwriting; and other investment activities.
5. Includes all financial company paper sold by dealers in the open market.
6. As reported by financial companies that place their paper directly with
investors.
7. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
8. Beginning October 1984, the number of respondents in the bankers acceptance survey will be reduced from 340 to 160 institutions—those with $50 million or
more in total acceptances. The new reporting group accounts for over 95 percent
of total acceptances activity.
PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per annum
Effective Date
Rate
11.00
11.00
16.00
15.75
1983--Jan. 11..
Feb. 28..
Aug. 8 . .
10.50
16.50
17.00
16.50
16.00
15.50
15.00
14.50
14.00
13.50
13.00
12.00
11.50
1984--Mar. 19..
Apr. 5 . .
May 8 . .
June 25..
Sept.27..
Oct. 17..
29..
Nov. 9.
28.
Dec. 20.
11.50
12.00
12.50
13.00
12.75
12.50
12.00
11.75
11.25
10.75
NOTE. These data also appear in the Board's H.15 (519) release. For address,
see inside front cover.
Month
Month
Average
rate
1982-—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
15.75
16.56
16.50
16.50
16.50
16.50
16.26
14.39
13.50
12.52
11.85
11.50
1983-—Jan
Feb
Mar
Apr
May
June
11.16
10.98
10.50
10.50
10.50
10.50
1983—July
Aug
Oct
Nov
Dec
1984—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Financial Markets
1.34
A25
TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 6-10, 1984
Size of loan (in thousands of dollars)
Item
All
sizes
1-24
50-99
25-49
100-499
500-999
and over
SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS
1
?
3
4
5
6
7
8
9
10
11
12
13
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
With fixed rates
With floating rates
Weighted-average interest rate (percent per annum) ..
Interquartile range1
With fixed rates
With floating rates
Percentage of amount of loans
With floating rate
Made under commitment
With no stated maturity
With one-day maturity
36,985,734
171,018
1.2
.9
1.8
13.29
12.72-13.47
13.18
13.46
951,772
119,869
4.0
3.6
5.1
15.41
14.65-16.15
15.26
15.69
646,703
19,238
4.4
4.3
4.7
15.40
14.37-16.08
15.29
15.54
956,171
15,095
3.9
3.3
4.8
14.81
13.96-15.43
14.51
15.14
2,222,353
11,083
3.6
1.7
4.9
14.65
13.80-15.11
14.70
14.61
1,002,098
1,501
4.3
2.5
5.5
14.14
13.65-14.86
13.65
14.35
31,206,636
4,233
.8
.6
1.2
13.01
12.69-13.17
12.96
13.09
40.4
69.4
9.7
38.7
34.4
30.4
10.3
.1
45.2
45.0
19.4
.1
48.2
40.5
15.3
.1
60.7
50.8
37.4
1.0
70.1
67.8
34.0
1.0
37.9
73.4
6.5
45.7
1-99
LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS
14
15
16
17
18
19
20
71
22
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
With fixed rates
With floating rates
Weighted-average interest rate (percent per annum) ..
Interquartile range'
With fixed rates
With floating rates
Percentage of amount of loans
23 With floating rate
24 Made under commitment
3,982,434
26,744
49.4
41.6
51.2
13.81
12.89-14.48
14.27
13.70
471,238
24,143
35.3
29.5
41.4
16.05
14.75-16.65
16.16
15.92
350,926
1,679
41.7
45.4
40.8
14.68
13.80-15.50
14.59
14.70
213,024
322
52.9
60.9
51.3
14.01
13.65-14.75
14.55
13.91
2,947,246
601
52.4
46.9
53.2
13.33
12.82-13.80
13.01
13.38
81.5
79.5
48.0
47.7
80.8
59.0
84.0
67.3
86.7
88.0
25
76
27
78
29
30
31
37
33
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
With fixed rates
With floating rates
Weighted-average interest rate (percent per annum) ..
Interquartile range1
With fixed rates
With floating rates
34
35
36
37
38
Percentage of amount of loans
With floating rate
Secured by real estate
Made under commitment
With no stated maturity
With one-day maturity
Type of construction
39 1- to 4-family
40 Multifamily
41 Nonresidential
LOANS TO FARMERS
47
43
44
45
46
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per annum) ..
Interquartile range1
47
48
49
50
51
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
50-99
500 and over
3,049,989
33,300
9.2
8.0
11.1
14.56
13.24-15.50
13.96
15.44
221,702
21,475
8.8
9.8
5.8
15.35
14.93-16.09
15.12
15.97
188,964
5,296
8.7
9.9
6.7
15.38
14.20-15.98
14.89
16.39
141,543
2,230
18.1
30.7
11.1
15.23
15.00-15.67
15.52
15.08
1,018,190
3,941
10.1
10.6
9.8
15.05
13.72-15.52
14.05
15.68
1,479,589
358
7.8
5.6
14.9
13.93
12.93-14.79
13.58
14.91
40.4
73.3
71.6
4.0
.2
27.2
88.9
61.0
61.8
.5
32.8
83.0
37.7
83.0
1.0
66.2
95.0
91.1
79.0
2.9
61.1
98.0
82.4
6.3
2.9
26.6
50.6
68.3
5.1
2.1
17.9
2.2
79.9
37.7
2.3
.0
16.1
18.0
.0
18.1
5.9
.0
90.8
2.5
.0
92.8
3.4
.4
All sizes
25-49
10-24
1-9
100-249
50-99
998,347
67,803
6.6
14.87
14.35-15.45
186,662
51,876
6.1
15.05
14.49-15.53
122,404
8,086
6.2
14.69
14.23-15.03
146,481
4,675
6.3
14.98
14.56-15.27
14.63
15.17
14.99
14.96
14.38
14.72
15.12
14.88
15.24
16.77
14.57
14.16
14.75
14.54
15.11
14.87
15.22
15.01
14.57
14.90
1. Interest rate range that covers the middle 50 percent of the total dollar
amount of loans made.
2. Fewer than 10 sample loans.
25-49
1-24
CONSTRUCTION AND LAND DEVELOPMENT LOANS
125,457
1,793
5.6
15.10
14.65-15.58
14.47
(2)
15.41
(2)
14.50
152,701
929
5.2
15.06
14.76-15.56
250 and over
264,643
445
9.1
14.54
13.86-15.45
14.85
(2)
15.32
(2)
14.50
NOTE. For more detail, see the Board's E.2 (HI) statistical release,
14.52
(2)
14.66
(2)
13.84
A26
1.35
DomesticNonfinancialStatistics • February 1985
INTEREST RATES Money and Capital Markets
Averages, percent per annum; weekly and monthlyfiguresare averages of business day data unless otherwise noted.
1984
Instrument
1981
1982
1984, week ending
1983
Aug.
Sept.
Oct.
Nov.
Nov. 2
Nov. 9
Nov. 16 Nov. 23
Nov. 30
MONEY MARKET RATES
1 Federal funds1-2
2 Discount window borrowing l2 - 3
Commercial paper4-5
3
1-month
4 3-month
5 6-month
Finance paper, directly placed4-5
6
1-month
7
3-month
8 6-month
Bankers acceptances5-6
9 3-month
10 6-month
Certificates of deposit, secondary market7
11
1-month
12 3-month
13 6-month
14 Eurodollar deposits, 3-month8
U.S. Treasury bills5
Secondary market9
15
3-month
16
6-month
17
1-year
Auction average10
18
3-month
19
6-month
70
16.38
13.42
12.26
11.02
9.09
8.50
11.64
9.00
11.30
9.00
9.99
9.00
9.43
8.83
9.73
9.00
9.87
9.00
9.55
9.00
9.47
8.93
9.00
8.50
15.69
15.32
14.76
11.83
11.89
11.89
8.87
8.88
8.89
11.19
11.18
11.16
11.11
11.04
10.94
10.05
10.12
10.16
9.01
9.03
9.06
9.51
9.56
9.61
9.17
9.19
9.20
9.17
9.18
9.19
8.96
9.00
9.04
8.61
8.64
8.69
15.30
14.08
13.73
11.64
11.23
11.20
8.80
8.70
8.69
11.16
10.61
10.52
10.98
10.62
10.55
9.92
9.87
9.87
8.92
8.83
8.82
9.45
9.35
9.31
9.12
9.04
9.03
9.10
8.98
8.95
8.83
8.67
8.68
8.48
8.49
8.48
15.32
14.66
11.89
11.83
8.90
8.91
11.23
11.13
11.04
10.91
10.13
10.14
9.00
9.02
9.49
9.52
9.13
9.15
9.17
9.16
8.93
8.94
8.67
8.72
15.91
15.91
15.77
16.79
12.04
12.27
12.57
13.12
8.96
9.07
9.27
9.56
11.32
11.47
11.71
11.81
11.20
11.29
11.47
11.67
10.18
10.38
10.63
10.77
9.09
9.18
9.39
9.50
9.55
9.66
9.95
10.03
9.26
9.36
9.55
9.69
9.25
9.35
9.56
9.60
9.05
9.14
9.30
9.46
8.70
8.81
9.02
9.10
14.03
13.80
13.14
10.61
11.07
11.07
8.61
8.73
8.80
10.47
10.61
10.71
10.37
10.47
10.51
9.74
9.87
9.93
8.61
8.81
9.01
9.10
9.33
9.43
9.50
8.95
9.15
8.68
8.95
9.15
8.55
8.65
8.85
8.41
8.55
8.78
14.029
13.776
13.159
10.686
11.084
11.099
8.63
8.75
8.86
10.49
10.65
10.79
10.41
10.51
10.84
9.97
10.05
10.32
8.79
8.99
9.10
9.38
9.59
9.45
8.82
9.07
8.73
8.99
8.59
8.79
8.43
8.50
8.74
14.78
14.56
12.27
12.80
9.57
10.21
11.82
12.43
11.58
12.21
10.90
11.60
9.82
10.65
10.31
11.08
9.99
10.82
12.92
13.01
13.06
13.00
12.92
12.76
10.45
10.80
11.02
11.10
11.34
11.18
12.50
12.69
12.75
12.72
12.71
12.54
12.34
12.53
12.60
12.52
12.42
12.29
11.85
12.06
12.16
12.16
12.04
11.98
10.90
11.33
11.49
11.57
11.66
11.56
11.33
11.58
11.69
11.76
11.69
11.62
11.05
11.53
11.66
11.75
11.84
11.72
9.64
10.49
10 90
10.75
11.21
11.36
11.44
11.58
11.49
9.55
10.37
14.44
14.24
14.06
13.91
13.72
13.44
9.98
10.84
11 15
11.06
11.47
11.63
11.71
11.73
11.64
10.67
11.09
11.32
11.39
11.54
11.43
12.87
12.23
10.84
12.23
11.97
11.66
11.25
11.32
11.34
11.42
11.17
11.12
10.43
11.76
11.33
10.88
12.48
11.66
8.80
10.17
9.51
9.58
10.30
9.99
9.58
10.40
10.10
9.72
10.51
10.25
9.78
10.47
10.17
9.65
10.35
10.11
9.70
10.40
10.17
9.90
10.60
10.31
9.90
10.60
10.24
9.75
10.40
10.04
15.06
14.17
14.75
15.29
16.04
14.94
13.79
14.41
15.43
16.11
12.78
12.04
12.42
13.10
13.55
13,78
12.87
13.47
14.13
14.63
13.56
12.66
13.27
13.94
14.35
13.33
12.63
13.11
13.61
13.94
12.88
12.29
12.66
13.09
13.48
13.05
12.50
12.84
13.26
13.61
12.98
12.43
12.72
13.22
13.55
12.96
12.42
12.75
13.15
13.52
12.82
12.20
12.61
12.99
13.48
12.70
12.05
12.51
12.93
13.34
16.63
15.49
12.73
14.12
13.86
13.52
12.98
13.06
13.09
13.07
12.77
12.90
12.36
5.20
12.53
5.81
11.02
4.40
11.77
4.62
11.65
4.54
11.62
4.62
11.36
4.61
11.54
4.58
11.44
4.49
11.31
4.61
11.41
4.67
11.26
4.66
CAPITAL MARKET RATES
21
22
73
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
U.S. Treasury notes and bonds"
Constant maturities12
1-year
2-year
2-W-year13
3-year
5-year
7-year
10-year
20-year
30-year
Composite14
Over 10 years (long-term)
State and local notes and bonds
Moody's series15
Aaa
Baa
Bond Buyer series16
Corporate bonds
Seasoned issues17
All industries
Aaa
Aa
A
Baa
A-rated, recently-offered utility
bonds18
MEMO: Dividend/price ratio19
40
Preferred stocks
41
Common stocks
1. Weekly and monthly figures are averages of all calendar days, where the
rate for a weekend or holiday is taken to be the rate prevailing on the preceding
business day. The daily rate is the average of the rates on a given day weighted by
the volume of transactions at these rates.
2. Weekly figures are averages for statement week ending Wednesday.
3. Rate for the Federal Reserve Bank of New York.
4. Unweighted average of offering rates quoted by at least five dealers (in the
case of commercial paper), or finance companies (in the case of finance paper).
Before November 1979, maturities for data shown are 30-59 days, 90-119 days,
and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 150179 days for finance paper.
5. Yields are quoted on a bank-discount basis, rather than an investment yield
basis (which would give a higher figure).
6. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quoted by the dealers).
7. Unweighted average of offered rates quoted by at least five dealers early in
the day.
8. Calendar week average. For indication purposes only.
9. Unweighted average of closing bid rates quoted by at least five dealers.
10. Rates are recorded in the week in which bills are issued. Beginning with the
Treasury bill auction held on Apr. 18, 1983, bidders were required to state the
percentage yield (on a bank discount basis) that they would accept to two decimal
places. Thus, average issuing rates in bill auctions will be reported using two
rather than three decimal places.
11. Yields are based on closing bid prices quoted by at least five dealers.
12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields
are read from a yield curve at fixed maturities. Based on only recently issued,
actively traded securities.
13. Each biweekly figure is the average of five business days ending on the
Monday following the date indicated. Until Mar. 31, 1983, the biweekly rate
determined the maximum interest rate payable in the following two-week period
on 2-'/:-year small saver certificates. (See table 1.16.)
14. Averages (to maturity or call) for all outstanding bonds neither due nor
callable in less than 10 years, including several very low yielding "flower" bonds.
15. General obligations based on Thursday figures; Moody's Investors Service.
16. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
17. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
18. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of
call protection. Weekly data are based on Friday quotations.
19. Standard and Poor's corporate series. Preferred stock ratio based on a
sample of ten issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases.
For address, see inside front cover.
Financial Markets
1.36
STOCK MARKET
A27
Selected Statistics
1984
Indicator
1981
1983
1982
Mar.
Apr.
May
July
June
Aug.
Sept.
Oct.
Nov.
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)' . . .
7 American Stock Exchange 2
(Aug. 31, 1973 = 100)
74.02
85.44
72.61
38.90
73.52
128.05
68.93
78.18
60.41
39.75
71.99
119.71
92.63
107.45
89.36
47.00
95.34
160.41
90.66
105.92
86.10
44.83
89.50
157.44
90.67
106.56
83.61
43.86
88.22
157.60
90.07
105.94
81.62
44.22
85.06
156.55
88.28
104.04
79.29
43.65
80.75
153.12
87.08
102.29
76.72
44.17
79.03
151.08
94.49
111.20
86.86
46.69
87.92
164.42
95.68
112.18
86.88
47.47
91.59
166.11
95.09
110.44
86.82
49.02
92.94
164.82
95.85
110.91
87.37
49.93
95.28
166.27
171.79
141.31
216.48 210.09
207.66
206.39 201.24
192.82
207.90
214.50
210.39
209.47
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
46,967
5,346
64,617
5,283
85,418 84,328
8,215
5,382
85,874
5,863
88,170 85,920
5,935
5,071
79,156
5,141
109,892
7,477
93,108
5,967
91,676
5,587
83,692
6,008
Customer financing (end-of-period balances, in millions of dollars)
10 Margin credit at broker-dealers
3
11 Margin stock
12 Convertible bonds
13 Subscription issues
Free credit balances at brokers4
14 Margin-account
15 Cash-account
22,668
14,411
13,325
23,000
14,150
259
2
12,980
22,720 22,460
279
208
3,515
7,150
5,735
8,390
344
1
1
6,620
8,430
6,520
8,265
22,830
•
22,360
23,450
22,980
22,810
t
t
t
n.a.
t
t
n.a.
n.a.
n.a.
n.a.
n.a.
6,450
7,910
6,685
8,115
6,430
8,305
6,430
8,125
6,855
8,185
6,690
8,315
22,800
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
100.0
100.0
100.0
37.0
24.0
17.0
10.0
6.0
6.0
21.0
24.0
24.0
14.0
9.0
8.0
41.0
22.0
16.0
9.0
6.0
6.0
46.0
20.0
14.0
9.0
6.0
5.0
47.0
20.0
13.0
8.0
6.0
6.0
53.0
18.0
12.0
7.0
5.0
5.0
50.0
19.0
12.0
8.0
6.0
5.0
52.0
17.0
12.0
8.0
5.0
6.0
40.0
22.0
16.0
9.0
6.0
7.0
42.0
22.0
15.0
9.0
6.0
6.0
44.0
21.0
14.0
9.0
6.0
6.0
47.0
19.0
13.0
9.0
6.0
6.0
71,914
73,904
Special miscellaneous-account balances at brokers (end of period)
23 Total balances (millions of dollars)
Distribution by equity status
24 Net credit status
Debt status, equity of
25
60 percent or more
26
Less than 60 percent
6
25,870
35,598
58,329
65,860
66,340
70,110
58.0
62.0
63.0
61.0
60.0
60.0
31.0
11.0
29.0
9.0
28.0
9.0
28.0
11.0
29.0
11.0
27.0
13.0
69,410
70,588
71,840
72,350
56.0
57.0
58.0
58.0
59.0
59.0
30.0
14.0
30.0
13.0
31.0
11.0
31.0
11.0
30.0
11.0
29.0
12.0
<percent)
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
70
50
70
80
60
80
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Beginning July 5, 1983, the American Stock Exchange rebased its index
effectively cutting previous readings in half.
3. Beginning July 1983, under the revised Regulation T, margin credit at
broker-dealers includes credit extended against stocks, convertible bonds, stocks
acquired through exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds,
and subscription issues was discontinued in April 1984, and margin credit at
broker-dealers became the total that is distributed by equity class and 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.
May 6, 1970
65
50
65
Dec. 6, 1971
55
50
55
Nov. 24, 1972
65
50
65
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.
A28
1.37
DomesticNonfinancialStatistics • February 1985
SELECTED FINANCIAL INSTITUTIONS
Selected Assets and Liabilities
Millions of dollars, end of period
1984
1983
Account
1981
1982
Sept.
Oct.
877,642
550,129
112,350
215,163
881,627
552,516
112,023
217,088
664,167 707,646 773,417 774,414 781,821 797,849 808,264 825,557 840,682 850,780 860,088 877,642
881,627
525,061 567,961 634,455 640,079 644,977 656,650 660,663 670,666 681,947 687,817 691,704 704,558
87,034 87,269 94,113 98,275 103,119 108,417 110,238 114,747 121,329
88,782 97,850 92,127
60,178 63,627
53,485 56,558 57,115
52,626 50,880 50.465 50,663 51,951
62,794 63,861
54,569 57,702
39,501
36,154 36,804 43,450 46,324 49,634 51,859 53,123
33.989
25,988
25,726 26,122 26,773 27,141
9,934 21,117 21,532 21.974 22,969 23,938 24,761
6,385
19,832
17,586
19,970 20,599 18,050
18,146
15.548
17,524
15,602
16,415
15,544
15,968
708,846
119,305
63,412
55,893
26,754
19,894
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Savings and loan associations'
1
2
3
4
Assets
Mortgages
Cash and investment securities1
Other
5 Liabilities and net worth
6
7
8
9
10
11
Savings capital
Borrowed money
FHLBB
Other
Loans in process2
Other
664,167 707,646 773,417 774,414 781,821 797,849 808,264 825,557 840,682 850,780 860,088
518.547 483,614 494,789 496,015 499,337 503,509 510.670 519,628 528,172 535,814 540,644
63,123 85,438 104,274 102,760 104,800 109,477 106,863 110,033 109,752 108,456 108,820
82,497 138,594 174,354 175,639 177,684 184,863 190,731 195,896 202,758 206,510 210,624
12 Net worth3
28,395
26,233
30,867
30,886
31.429
31,538
31,802
31,940
32,732
32,755
33,038
33,705
33,582
13 MEMO: Mortgage loan commitments
outstanding4
15,225
18,054
32,996
33,504
36,198
39,867
41,732
45,274
44,878
43,878
41,182
40,089
38,530
198,864 199,128 200,722 201,445
203,274
5
Mutual savings banks
14 Assets
15
16
17
18
19
20
21
Loans
Mortgage
Other
Securities
U.S. government6
State and local government
Corporate and other7
Cash
Other assets
22 Liabilities
25
Ordinary savings
27 Other
28 Other liabilities
29 General reserve accounts
30 MEMO: Mortgage loan commitments
outstanding9
198,000 200,087
175,728
174,197
193,535
194,217
195,168
197,178
99,997
14,753
94,091
16,957
97,356
19,129
97,703
20,463
97,895
21.694
98,472
21.971
99,017
22,531
99,881
22,907
99,433
23,198
100,091
23,213
9,810
2,288
37,791
5,442
5,649
9,743
2,470
36,161
6,919
7,855
15,360
2,177
43,580
6,263
9,670
15,167
2,180
43,542
4,788
10,374
15,667
2,054
43,439
4.580
9,839
15,772
2.067
43,547
5,040
10,309
15.913
2,033
43,122
5,008
10,376
16,404
2,024
43,200
5,031
10,640
15,448
2,037
42,479
5,452
10,817
15,457
2,037
42,682
4,896
10,752
175,728
174,197
193,535
194,217
195,168
197,178
198,000 200,087
155,110
153,003
49,425
103,578
2,108
10,632
9,986
155,196
152,777
46,862
96,369
2,419
8,336
9,235
172,665
170,135
38,554
95,129
2,530
10,154
10,368
173,636
171,099
37,992
96,519
2,537
9,917
10,350
174,370
171,957
37,642
96,005
2,413
10,019
10,492
176,044
173,385
37,866
97.339
2,659
10,390
10,373
175,875
173,010
37,329
96,920
2,865
11,211
10,466
176,253
173,310
37,147
97,236
2,943
12,861
10,554
1,293
1,285
2,387
n.a.
n.a.
n.a.
n.a.
n.a.
101,211 101,621
24,068 24,535
15,019
2,055
42,632
4,981
10,756
102,704
24,486
14,965
2,052
42,605
4,795
10,872
15,295
2,080
43,003
4,605
11,101
198,864
199,128 200,722 201,445
203,274
174,972
171,858
36,322
97,168
3,114
12,999
10,404
174,823
171,740
35,511
98,410
3,083
13,269
10,495
n.a.
n.a.
176,085 177,345
172,990 174,296
34,787 34,564
101,270 102,934
3,095
3,049
13,604 12,979'
10,498 10,488
n.a.
n.a.
178,624
175,727
34,221
104,151
2,897
13,853
10,459
n.a.
Life insurance companies
31 Assets
Securities
32 Government
33
United States1"
34
State and local
37
38
Bonds
Stocks
40 Real estate
42 Other assets
525,803 588,163 654,948 658,504 660,901
665,836 671,259 673,518 679,449 684,573 694,082 699,996
25,209 36,499 50,752 51,328 51.762 52,504 52,828 53,422 53,970 54,688 56,263 57,552
16,529 28,636 29,179 30,130 31,056 31,358 31,706 32,066 32,654 33,886 35,586
8,167
9,357
9,239
9,213
9,236
9,221
9,995
9,426
9,259
9,192
8,664
9,986
7,151
13,020 12,745
12,189
12,477
12,798
12,154
12,206
12,278
12,691
11,306
12,130
9,891
255,769 287,126 322,854 328,075 328,235 331,631 334,634 334,151 338,508 341,802 348,614 350,512
208,099 231,406 257.986 263,207 265,798 268,446 271,296 273,212 276,902 281,113 283,673 285,543
47,670 55,720 64,868 64,868 62.437 63,185 63,338 60,939 61,606 60,689 64,941 64,969
137,747 141,989 150,999 151,085 151,020 151,445 152,373 152,968 153,845 154,299 155,438 155,802
23,034 23,237 23,517 23,792 24,019 24,117 24,685
18,278 20,264 22,234 22,500 22,591
54,517 54,551
54,063 54,089 54,170 54,254 54,365 54,399 54,430 54,441
48,706 52,961
54,904 55,324 55,133 56,894
54,046 51,939 53,123 52,968 53,822 55,061
40,094 48,571
n.a.
Credit unions12
43 Total assets/liabilities and capital
44 Federal
45 State
60,611
39,181
21,430
69,585
45,493
24,092
81,961
54,482
27,479
82,496
54,770
27,726
83,726
55,753
27,973
85,789
57,569
28,220
86,594
58,127
28,467
88,350
59,636
28,714
90,276
61,316
28,960
90,145
61,163
28,982
90,503
61,500
29,003
91,651
62,107
29,544
91,619
61,935
29,684
48
State
50
51
Federal (shares)
State (shares and deposits)
42,333
27,096
15,237
54,152
35,250
18,902
43,232
27,948
15,284
62,990
41,352
21,638
50,083
32,930
17,153
74,739
49,889
24,850
50,625
33,270
17,355
75,532
50,438
25,094
51,435
33.878
17,557
76,556
51,218
25,338
52,269
34,510
17,759
78,487
52,905
25,582
53,247
35,286
17,961
79,413
53,587
25,826
54,437
36,274
18,163
80,702
54,632
26,070
55,915
37,547
18,368
82,578
56,261
26,317
57,286
38,490
18,796
82,402
56,278
26,124
58,802
39,578
19,224
82,135
56,205
25,930
59,874
40,310
19,564
83,172
56,734
26,438
60,483
40,727
19,756
83,129
56,655
26,474
Financial Markets
1.37
A29
Continued
1983
Account
1981
1984
1982
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
FSLlC-insured federal savings banks
52
53
54
55
Assets
Mortgages
Cash and investment securities'
Other
6,859
64,969
69,835
72,143
75,555
77,374
78,952
81,310
83,989
87,209
82,174
87,743
3,353
38,698
10,436
15.835
41,754
11,243
16,838
43,371
11,662
17,110
44,708
12,552
18,295
45,900
12,762
18,712
46,791
12,814
19,347
48,084
13,071
20,155
49,996
13,184
20,809
52,039
13,331
21,839
48,841
12,867
20,466
51,554
13,615
22,574
56 Liabilities and net worth
6,859
64,969
69,835
72,143
75,555
77,374
78,952
81,310
83,989
87,209
82,174
87,743
57
58
59
60
61
62
5,877
53,227
7,477
4,640
2,837
1,157
3,108
57,195
8,048
4,751
3,297
1,347
3,245
59,107
8,088
4,884
3,204
1,545
3,403
61,433
9,213
5,232
3.981
1,360
3.549
62,495
9,707
5,491
4,216
1,548
3.624
63,026
10,475
5,900
4,575
1,747
3,704
64,364
11,489
6,538
4,951
1,646
3,811
66,227
12,060
6,897
5,163
1,807
3,895
68,443
12,863
7,654
5,209
1,912
3,991
65,079
11,828
6,600
5,228
1,610
3,657
70,080
11,935
6,867
5,068
1,896
3,832
Savings and capital
Borrowed money
FHLBB
Other
Other
Net worth3
MEMO
63 Loans in process2
64 Mortgage loan commitments
outstanding4
1,264
1,387
1,531
1,669
1,716
1,787
1,839
1,901
1,895
1,505
1,457
2,151
2,974
2,704
3.253
3,714
3,763
3.583
3,988
3,860
2,970
2,925
1. Holdings of stock of the Federal Home Loan Banks are in "other assets."
2. Beginning in 1982, loans in process are classified as contra-assets and are
not included in total liabilities and net worth. Total assets are net of loans in
process.
3. Includes net undistributed income accrued by most associations.
4. Excludes figures for loans in process.
5. The National Council reports data on member mutual savings banks and on
savings banks that have converted to stock institutions, and to federal savings
banks.
6. Beginning April 1979, includes obligations of U.S. government agencies.
Before that date, this item was included in "Corporate and other."
7. Includes securities of foreign governments and international organizations
and, before April 1979, nonguaranteed issues of U.S. government agencies.
8. Excludes checking, club, and school accounts.
9. 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.
10. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
11. Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
12. As of June 1982, data include only federal or federally insured state credit
unions serving natural perons.
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 Council of Savings Institutions 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 federally insured state credit unions serving natural persons.
Figures are preliminary and revised annually to incorporate recent data.
A30
1.38
DomesticNonfinancialStatistics • February 1985
FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
Fiscal
year
1982
Fiscal
year
1983
Fiscal
year
1984
1983
HI
U.S. budget
1 Receipts1
2 Outlays'
3 Surplus, or deficit ( - )
4 Trust funds
5 Federal funds2-3
Off-budget entities (surplus. or deficit (-))
6 Federal Financing Bank outlays
7 Other3-4
U.S. budget plus off-budget, including
Federal Financing Bank
8 Surplus, or deficit ( - )
Source of financing
9 Borrowing from the public
10 Cash and monetary assets (decrease, or
increase (-)) 4
11 Other5
1984
H2
HI
1984
Sept.
Oct.
Nov.
617,766
728,375
-110,609
5,456
-116,065
600,562
795,917
-195,355
23,056
-218,410
666,457
841,800
-175,343
30,565
-205,908
306,331
396,477
-90,146
22,680
-112,822
306,584
406,849
-100,265
7,745
-108,005
341,808
420,700
-78,892
18,080
-96,971
68,019
51,234
16,785
23,861
-7,077
52,251
81,037
-28,786
10,055
-38,842
51,494
79,956
-28,462
-265
-28,197
-14,142
-3,190
-10,404
-1,953
-7,277
-2,719
-5,418
-528
-3,199
-1,206
-2,813
-838
-467
-1,507
154
613
-48
-392
-127,940
-207,711
-185,339
-96,094
-104,670
-84,884
-14,811
-28,019
-28,902
134,993
212,425
170,817
102,538
84,020
80,592
4,167
20,754
19,353
-11,911
4,858
-9,889
5,176
5,636
8,885
-9,664
3,222
-16,294
4,358
-3,127
7,418
-18,978
-1
7,564
-299
14,780
-5,231
29,164
10,975
18,189
37,057
16,557
20,500
37,057
16,557
20,500
27,997r
19,442
8,764f
30,426
8,514
21,913
22,345
3,791
18,553
5,566
2,216
3,350
MEMO
12 Treasury operating balance (level, end of
period)
13 Federal Reserve Banks
14 Tax and loan accounts
1. Effective Feb. 8, 1982, supplemental medical insurance premiums and
voluntary hospital insurance premiums, previously included in other insurance
receipts, have been reclassified as offsetting receipts in the health function.
2. Half-year figures are calculated as a residual (total surplus/deficit less trust
fund surplus/deficit).
3. Other off-budget includes Postal Service Fund; Rural Electrification and
Telephone Revolving Fund; Rural Telephone Bank; and petroleum acquisition
and transportation and strategic petroleum reserve effective November 1981.
4. Includes U.S. Treasury operating cash accounts; SDRs; gold tranche
drawing rights; loans to International Monetary Fund; and other cash and
monetary assets.
11,817'
3,661'
8,157''
13,567'
4,397'
9,170'
5. Includes accrued interest payable to the public; allocations of special
drawing rights; deposit funds; miscellaneous liability (including checks outstanding) and asset accounts; seigniorage; increment on gold; net gain/loss for U.S.
currency valuation adjustment; net gain/loss for IMF valuation adjustment; and
profit on the sale of gold.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government" Treasure Bulletin, and the Budget of the U.S. Government, Fiscal
Year 1985.
Federal Finance
1.39
A31
U.S. BUDGET RECEIPTS AND OUTLAYS
Millions of dollars
Calendar year
Source or type
Fiscal
year
1983
Fiscal
year
1984
1984
1984
1983
1982
H2
HI
H2
HI
Sept.
Oct.
Nov.
RECEIPTS
1 All sources
? Individual income taxes, net
3 Withheld
4 Presidential Election Campaign Fund . . .
Nonwithheld
6 Refunds
Corporation income taxes
7 Gross receipts
8 Refunds
9 Social insurance taxes and contributions,
net
10 Payroll employment taxes and
contributions'
11 Self-employment 2taxes and
contributions
12 Unemployment insurance
13 Other net receipts3
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts4
600,563
666,457
286,337
306,331
305,122
341,808
68,019
52,250
51,494
288,938
266,010
36
83,586
60,692
295,955
279,345
35
81,346
64,771
145,676
131,567
5
20,041
5,938
144,551
135,531
30
63,014
54,024
147,663
133,768
6
20,703
6,815
144,691
140,657
29
61,463
57,458
31,541
21,852
1
11,716
2,027
25,624
24,721
0
1,463
559
24,792
24,573
0
1,036
816
61,780
24,758
74,179
17,286
25,660
11,467
33,522
13,809
31,064
8,921
40,328
10,045
12,332
441
3,307
2,371
1,888
766
209,001
241,902
94,277
110,520
100,832
131,372
18,639
19,107
19,525
179,010
203,476
85,064
90,912
88,388
106,436
16,781
17,273
16,752
6,756
18,799
4,436
8,709
25,138
4,580
177
6,856
2,180
6,427
10,984
2,197
398
8.714
2,290
7,667
14,942
2,329
1,209
295
354
146
1,323
365
0
2,346
427
35,300
8,655
6,053
15,594
37,361
11,370
6,010
16,965
16,555
4,299
3,444
7,890
16.904
4,010
2,883
7,751
19,586
5,079
3,050
7,811
18,304
5,576
3,102
8,481
3,120
939
449
1,440
3,264
1,150
582
1,586
3,151
989
495
1,421
OUTLAYS
18 All types
795,917
841,800
390,847
396,477
406,849
420,700
51,234
81,037
79,956
19
70
71
V
73
24
National defense
International affairs
General science, space, and technology . ..
Energy
Natural resources and environment
Agriculture
210,461
8,927
7,777
4,035
12,676
22,173
227,405
13,313
8,271
2,464
12,677
12,215
100,419
4.406
3.903
2.058
6,941
13.259
105,072
4,705
3.486
2,073
5,892
10,154
108,967
6,117
4,216
1,533
6,933
5.278
114,639
5,426
3,981
1,080
5,463
7,129
18,942
1,698
646
-266
1,293
145
20,643
1,995
961
562
1,390
2,344
22,017
1,423
667
327
955
2,144
?S
76
27
28
Commerce and housing credit
Transportation
Community and regional development . . . .
Education, training, employment, social
services
4,721
21,231
7,302
5,198
24,705
7,803
2.244
10,686
4,187
2,164
9,918
3.124
2,648
13,323
4,327
2,572
10,616
3,154
103
2,331
850
1,390
2,411
1,106
-271
2,282
873
79 Health
30 Social security and medicare
31 Income security
3? Veterans benefits and services
33 Administration of justice
34 General government
35 General-purpose fiscal assistance
6
36 Net interest
37 Undistributed offsetting receipts7
25,726
26,616
12.186
12.801
13,246
13,445
1,839
2,369
2,655
28,655]
223,311>
106,21 LJ
30,435
235,764
96,714
39,072
133,779
41,206
143,001
42,150
15,748
135.579
65,212
2,337
4,084
7,615
2,891
21,457
10,493
2,515
19,631
10,880
24,845
5,014
4,991
6,287
89,774
-21,424
25,640
5,616
4,836
6,577
111,007
-15,454
13,240
2,373
2,323
3,153
44,948
—8,332
13,621
2,628
2,479
3,290
47,674
-7,262
12,849
2,807
2,462
2,943
53,729
-7,333
936
396
468
236
9,742
-2,160
2,108
376
536
1,735
9,497
-3,226
3,350
633
143
119
12,120
-2,508
1. Old-age, disability, and hospital insurance, and railroad retirement accounts.
2. Old-age, disability, and hospital insurance.
3. Federal employee retirement contributions and civil service retirement and
disability fund.
4. Deposits of earnings by Federal Reserve Banks and other miscellaneous
receipts.
5. In accordance with the Social Security Amendments Act of 1983, the
Treasury now provides social security and medicare outlays as a separate
11,334
2.522
2,434
3,124
42,358
-8,887
function. Before February 1984, these outlays were included in the income
security and health functions.
6. Net interest function includes interest received by trust funds.
7. Consists of rents and royalties on the outer continental shelf and U.S.
government contributions for employee retirement.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government" and the Budget of the U.S. Government. Fiscal Year 1985.
A32
Domestic Financial Statistics •
F e b r u a r y 1985
1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1982
1984
1983
Item
Sept. 30
Mar. 31
Dec. 31
Sept. 30
June 30
Dec. 31
Mar. 31
June 30
Sept. 30
1 Federal debt outstanding
1,147.0
1,201.9
1,249.3
1,324.3
1,381.9
1,415.3
1,468.3
1,517.2
n.a.
2 Public debt securities
3
Held by public
4
Held by agencies
1,142.0
925.6
216.4
1,197.1
987.7
209.4
1,244.5
1,043.3
201.2
1,319.6
1,090.3
229.3
1,377.2
1,138.2
239.0
1,410.7
1,174.4
236.3
1,463.7
1,223.9
239.8
1,512.7
1,255.1
257.6
1,572.3
5.0
3.7
1.2
4.8
3.7
1.2
4.8
3.7
1.1
4.7
3.6
1.1
4.7
3.6
1.1
4.6
3.5
1.1
4.6
3.5
1.1
4.5
3.4
1.1
5 Agency securities
Held by public
6
7
Held by agencies
A
n.a.
1
t
1,142.9
1,197.9
1,245.3
1,320.4
1,378.0
1,411.4
1,464.5
1,513.4
1,573.0
9 Public debt securities
10 Other debt1
1,141.4
1.5
1,196.5
1.4
1,243.9
1.4
1,319.0
1.4
1,376.6
1.3
1,410.1
1.3
1,463.1
1.3
1,512.1
1.3
1,571.7
1.3
11 MEMO: Statutory debt limit
1,143.1
1,290.2
1,290.2
1,389.0
1,389.0
1,490.0
1,490.0
1,520.0
1,573.0
8 Debt subject to statutory limit
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
Billions of dollars, end of period
NOTE. Data from Treasury Bulletin (U.S. Treasury Department),
Types and Ownership
1984
1983
Type and holder
1 Total gross public debt
By type
2 Interest-bearing debt
3 Marketable
4
5 Notes
6 Bonds
7 Nonmarketable1
8
State and local2 government series
9
Foreign issues
10
Government
11
Public
12 Savings bonds and notes
13 Government account series3
1979
1981
1980
1982
Q4
Ql
Q2
Q3
845.1
930.2
1,028.7
1,197.1
1,410.7
1,463.7
1,512.7
1,572.3
844.0
530.7
172.6
283.4
74.7
313.2
24.6
28.8
23.6
5.3
79.9
177.5
928.9
623.2
216.1
321.6
85.4
305.7
23.8
24.0
17.6
6.4
72.5
185.1
1.027.3
720.3
245.0
375.3
99.9
307.0
23.0
19.0
14.9
4.1
68.1
196.7
1,195.5
881.5
311.8
465.0
104.6
314.0
25.7
14.7
13.0
1.7
68.0
205.4
1.400.9
1.050.9
343.8
573.4
133.7
350.0
36.7
10.4
10.4
.0
70.7
231.9
1,452.1
1,097.7
350.2
604.9
142.6
354.4
38.1
9.9
9.9
.0
71.6
234.6
1.501.1
1,126.6
343.3
632.1
151.2
374.5
39.9
8.8
8.8
.0
72.3
253.2
1,559.6
1,176.6
356.8
661.7
158.1
383.0
41.4
8.8
8.8
.0
73.1
259.5
12.7
1.2
1.3
1.4
1.6
9.8
11.6
11.6
15
16
17
18
19
20
21
22
By holder4
U.S. government agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
Money market funds
Insurance companies
Other companies
State and local governments
187.1
117.5
540.5
88.1
5.6
21.4
17.0
69.9
192.5
121.3
616.4
112.1
3.5
24.0
19.3
84.4
203.3
131.0
694.5
111.4
21.5
29.0
17.9
85.6
209.4
139.3
848.4
131.4
42.6
39.1
24.5
113.4
236.3
151.9
1,022.6
188.8
22.8
48.9
39.7
n.a.
239.8
150.8
1,073.0
189.8
19.4
n.a.
45.4
n.a.
257.6
152.9
1,093.7
183.8
14.9
n.a.
47.9
n.a.
23
74
25
26
Individuals
Savings bonds
Other securities
Foreign and international5
Other miscellaneous investors6
79.9
38.1
119.0
99.6
72.5
44.6
129.7
126.3
68.1
42.7
136.6
167.8
68.3
48.2
149.5
231.4
71.5
61.9
168.9
n.a.
72.2
64.7
166.3
n.a.
72.9
69.3
170.9
n.a.
14 Non-interest-bearing debt
1. Includes (not shown separately): Securities issued to the Rural Electrification Administration; depository bonds, retirement plan bonds, and individual
retirement bonds.
2. Nonmarketable dollar-denominated and foreign currency-denominated series held by foreigners.
3. Held almost entirely by U.S. government agencies and trust funds.
4. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.
n.a.
160.1
n.a.
5. Consists of investments of foreign and international accounts. Excludes noninterest-bearing notes issued to the International Monetary Fund.
6. Includes savings and loan associations, nonprofit institutions, credit unions,
mutual savings banks, corporate pension trust funds, dealers and brokers, certain
U.S. government deposit accounts, and U.S. government-sponsored agencies.
SOURCES. Data by type of security, U.S. Treasury Department, Monthly
Statement of the Public Debt of the United States; data by holder. Treasury
Bulletin.
Federal Finance
1.42
U.S. GOVERNMENT SECURITIES DEALERS Transactions
Par value; averages of dailyfigures,in millions of dollars
1984 week ending Wednesday
1984
Item
1
2
3
4
6
7
8
9
10
11
12
13
14
15
16
17
18
A33
1981
1982
1983
Sept.
Oct.'
Nov.
Oct. 24
Oct. 31'
Nov. 7
Nov. 14 Nov. 21 Nov. 28
Immediate delivery1
U.S. government securities
24,728
32,271
42,135
50,331'
61,342
71,194
83,295'
64,999
80,890
66,330
73,549
61,476
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
14,768
621
4,360
2,451
2,528
18,398
810
6,272
3,557
3.234
22,393
708
8,758
5,279
4,997
25,701
1,051
10,457'
7,977
5,146'
29,935
1,745
14,038
9,460
6,164
31,328
2,448
18,658
10,590
8,171
36,257'
2,120
21,526'
13,562'
9,830'
31,832
2,492
16,264
8,482
5.929
35,052
3,007
22,672
11,746
8,413
27,328
2,967
15,214
8,508
12,314
34,628
2,304
19,625
9,730
7,263
25,595
1,880
18,693
9,229
2,990
By type of customer
U.S. government securities
dealers
U.S. government securities
brokers
All others2
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures transactions3
Treasury bills
Treasury coupons
Federal agency securities
Forward transactions4
U.S. government securities
Federal agency securities
1,640
1,769
2,257
2,654
3,673
3,683
4,949
3,479
4,059
3,686
3,687
2,990
11,750
11,337
3,306
4,477
1,807
6,128
15,659
15,344
4,142
5,001
2,502
7,595
21,045
18,833
5,576
4,334
2,642
8,036
24,447
23,230'
8,967
4,456
3,792
11,663
28,874
28,795
9,235
4.966
4,186
10,570
33,379
34,132
10,152
5,205
4,027
11.059
39,209
39,138'
9,976'
5,526
4,200
10,131
30,904
30,616
8,278
5,591
4,287
10,682
38,219
38,612
10,404
5,752
4,644
12,467
30,154
32,491
12,403
5,026
3,389
11,641
35,669
34.193
11,135
5,533
4,320
11,441
28,766
29,721
8,099
4,830
3,763
8,991
3,523
1,330
234
5,031
1,490
259
6,655
2,501
265
5,097
5,117'
254
4,954
5,108
138
6,638
5,455
242
5,961
8,112'
161
5,758
4,624
233
8,762
5,610
236
6,514
5,106
288
6,315
4,972
185
4,840
5,615
292
365
1,370
835
982
1,493
1,646
1,074
2,454
1,252
2,644
1,851
3,586
2,386
2,010
590
2,205
2,320
3,376
986
5,000
2,600
4,241
1,917
2,215
1. Before 1981, data for immediate transactions include forward transactions.
2. Includes, among others, all other dealers and brokers in commodities and
securities, nondealer departments of commercial banks, foreign banking agencies,
and the Federal Reserve System.
3. Futures contracts are standardized agreements arranged on an organized
exchange in which parties commit to purchase or sell securities for delivery at a
future date.
4. Forward transactions are agreements arranged in the over-the-counter
market in which securities are purchased (sold) for delivery after 5 business days
from the date of the transaction for government securities (Treasury bills, notes,
and bonds) or after 30 days for mortgage-backed agency issues.
NOTE. Averages for transactions are based on number of trading days in the
period.
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, purchases or sales of securities under repurchase
agreement, reverse repurchase (resale), or similar contracts.
A34
1.43
DomesticNonfinancialStatistics • February 1985
U.S. GOVERNMENT SECURITIES DEALERS
Averages of dailyfigures,in millions of dollars
Positions and Financing
1984
Sept.
Oct.
1984 week ending Wednesday
Nov.
Sept. 26
Oct. 3
Oct. 10
Oct. 17
Oct. 24
Positions
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Net immediate1
U.S. government securities
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures positions
Treasury bills
Treasury coupons
Federal agency securities
Forward positions
U.S. government securities
Federal agency securities
9,033
6,485
-1,526
1,488
292
2,294
2,277
3,435
1,746
2,658
9,328
4,837
-199
2,932
-341
2,001
3,712
5,531
2,832
3,317
6.263
4,282
-177
1.709
-78
528
7,172
5,839
3.332
3,159
11.332
10.316
310
4,012
-1,031
-2.355
14,063
7.894
5.274
4.531
14.569'
11.673
116
5.560'
-1.554
-1.348
13.169
7.620
3.980
4.683
14.590
9.849
-398
7.234
-1.806
-431
16.108
8.509
4.474
4.959
13,281
10,052
80
6,956
-1,764
-2,122
12.247
8,195
4,897
4,352
13,859
12.953
-36
4,295
-1.776
-1.666
11,693
7.922
4,782
4,493
12.322
11,501
23
4,610
-2,066
-1.853
12,816
7,417
3,767
4,013
13,026
11,937
-31
3.956
-1,357
-1.607
13.254
7.607
3.962
4,047
14,943
10,281
188
6,357
-1.002
-1,015
13,612
7,392
3,641
5.214
-8.934
-2.733
522
-2,508
-2,361
-224
-4,125
-1.032
170
-9.478
2.667
267
-9.449'
2,519'
-248
-8.103
1.409
-21
-9,631
2,741
159
-8.404
2,035
13
-8,818
2,662
-139
-10,331
2,821
-297
-10,407
3,337
-371
-603
-451
-788
-1,190
-1,935
-3,561
-927
-8,599
-855
-8.568
-1.381
-9.197
-925
-7,769
-759
-8,166
-318
-9,339
-489
-8,724
-1.258
-8.068
FinancingReverse repurchase agreements'
Overnight and continuing
Term agreements
Repurchase agreements4
18 Overnight and continuing
19 Term agreements
16
17
14,568
32,048
26.754
48,247
29,099
52,493
42.461
70,864
48.558
72.907
49,834
78,049
42,250
72,128
43,028
70,447
49,404
71.423
48.301
72,579
49,423
74,772
35,919
29,449
49,695
43,410
57,946
44,410
81.941
53,799
236.944
61.396
82,964
74.249
82.185
55,757
79,460
56,182
84,791
58,187
85,040
61,412
785,022
63.763
1984 week ending Wednesday
Positions
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Net immediate1
U.S. government securities
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures positions
Treasury bills
Treasury coupons
Federal agency securities
Forward positions
U.S. government securities
Federal agency securities
17.845
11.678
382
8.075
-1.701
-725
13.645
7.928
3.984
5,258
14,212
8,752
486
8,814
-2,764
-1,211
15,005
8,621
4,109
5,923
16,598
10,212
-493
8,307
-1,686
125
14,875
8,434
3,857
5,741
13.727
10,040
-599
5.767
-1.163
-465
14,758
8.678
4.638
4.413
15,235
10.275
-642
7,111
-1.763
107
19,525
8.437
5,124
4,186
-8,874
1,479
-297
-8.460
2.079
-10
-8,083
1,658
42
-8,064
1,610
13
-7,837
950
-94
-1,322
-8,355
-945
-9,093
-1,468
-9,007
-1,512
-8.893
-1.725
-10,585
Financing2
Reverse repurchase agreements3
Overnight and continuing
Term agreements
Repurchase agreements4
18 Overnight and continuing
19 Term agreements
16
17
50,424
74,329
51,589
74,501
51,643
75,316
43,195
85,094
50,543
78,025
87,413
65,350
88,417
66,924
88,391
67,110
59,395
96,133
91.502
69.143
1. Immediate positions are net amounts (in terms of par values) of securities
owned by nonbank dealer firms and dealer departments of commercial banks on a
commitment, that is, trade-date basis, including any such securities that have
been sold under agreements to repurchase (RPs). The maturities of some
repurchase agreements are sufficiently long, however, to suggest that the securities involved are not available for trading purposes. Prior to 1984, securities
owned, and hence dealer positions, do not include all securities acquired under
reverse RPs. After January 1984, immediate positions include reverses to maturity, which are securities that were sold after having been obtained under reverse
repurchase agreements that mature on the same day as the securities. Before
1981, data for immediate positions include forward positions.
2. Figures cover financing involving U.S. government and federal agency
securities, negotiable CDs, bankers acceptances, and commercial paper.
3. Includes all reverse repurchase agreements, including those that have been
arranged to make delivery on short sales and those for which the securities
obtained have been used as collateral on borrowings, that is, matched agreements.
4. Includes both repurchase agreements undertaken to finance positions and
"matched book" repurchase agreements.
NOTE. Data for positions are averages of daily figures, in terms of par value,
based on the number of trading days in the period. Positions are shown net and are
on a commitment basis. Data for financing are based on Wednesday figures, in
terms of actual money borrowed or lent.
Federal Finance
1.44
FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
A35
Debt Outstanding
Millions of dollars, e n d of period
1984
Agency
1
Federal and federally sponsored agencies
7
3
4
5
6
Federal agencies
Defense Department1
Export-Import Bank2-3
Federal Housing Administration4
Government National Mortgage Association
participation certificates5
Postal Service6
Tennessee Valley Authority
United States Railway Association6
7
8
9
10
11
12
N
14
15
Federally sponsored agencies7
Federal Home Loan Banks
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association8
Farm Credit Banks
Student Loan Marketing Association
16
Federal Financing Bank debt9
1981
1982
1983
May
June
July
Aug.
Sept.
267,399
Oct.
221,946
237,085
239,716
252,044
255,376
258,957
251,918
31,806
484
13,339
413
33,055
354
14,218
288
33,940
243
14,853
194
34,231
188
15,344
156
34,473
181
15,604
155
34,560
172
15,611
154
34,497
162
15,606
146
34,754
153R
15,733
14(K
35,012
149
15,721
139
2,715
1,538
13,115
202
2,165
1,471
14,365
194
2,165
1,404
14,970
111
2,165
1,337
14,930
111
2,165
1,337
14,980
51
2,165
1,337
15,070
51
2,165
1,337
15,030
51
2,165
1,337
15,160
51
2,165
1,337
15,450
51
190,140
54,131
5,480
58,749
71,359
421
204,030
55,967
4,524
70.052
71,896
1,591
205,776
48,930
6,793
74,594
72,409
3,050
217,813
52,281
9,131
79,267
73,138
3,996
220,903
54,799
8,988
79,871
73,061
4,184
224,397
57,965
7,822
80,706
73,297
4,607
217,421
62,116
9,068
79,921
61,628
4,688
232,645
65,616
8,950
80,123
73,131
4,825
224,31SP
66,126
110,698
126,424
135,791
139,936
141,734
143,322
144,063
144,836
144,978
12,741
1,288
5,400
11,390
202
14,177
1,221
5,000
12,640
194
14,789
1,154
5,000
13,245
111
15,296
1,087
5,000
13,205
111
15,556
1,087
5,000
13,255
51
15,563
1,087
5,000
13,345
51
15,563
1,087
5,000
13,305
51
15,690
1,087
5,000
13,435
51
15,690
1,087
5,000
13,725
51
48,821
13,516
12,740
53,261
17,157
22,774
55,266
19,766
26,460
56,476
20,456
28,305
57,701
20,611
28,473
58,856
20,671
28,749
59,196
20,742
29,119
59,511
20,587
29,475
59,021
20,694
29,710
MEMO
259,330''
n.a.
80,357
72,859
4,976
Lending to federal and federally sponsored
17
18
19
20
21
Export-Import Bank3
Postal Service6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association6
Other Lending10
77 Farmers Home Administration
?3 Rural Electrification Administration
24 Other
1. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
5. Certificates of participation issued before fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing
and Urban Development; Small Business Administration; and the Veterans
Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: Notes, bonds, and debentures.
8. Before late 1981, the Association obtained financing through the Federal
Financing Bank.
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.
A36
1.45
DomesticNonfinancialStatistics • February 1985
NEW SECURITY ISSUES State and Local Governments
Millions of dollars
1984
Type of issue or issuer,
or use
1981
1982
1983
Feb.
1 All issues, new and refunding1
Mar.
Apr.
May
June
July
Aug.
Sept.
47,732
79,138
86,421
4,599
5,547
5,617
7,075
6,657
7,323
9,803
7,248
12,394
34
35,338
55
21,094
225
58,044
461
21,566
96
64,855
253
1,846
2
2,753
2
2,500
2
3,047
4
2,291
3
3,326
8
2,373
3
4,702
13
1,885
3
4,772
15
1,940
3
5,383
18
1,864
5
7,939
21
1,627
9
5,621
23
Type of issuer
6 State
7 Special district and statutory authority
8 Municipalities, counties, townships, school districts
5,288
27,499
14,945
8,438
45,060
25,640
7,140
51,297
27,984
935
2,138
1,526
584
3,069
1,894
886
2,866
1,865
497
3,767
2,811
447
3,996
2,214
457
5,002
1,864
691
6,913
2,199
589
4,772
1,887
9 Issues for new capital, total
46,530
74,804
72,441
4,012
4,740
4,485
5,972
6,067
6,433
8,830
7,134
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
4,547
3,447
10,037
12,729
7,651
8,119
6,482
6,256
14,259
26,635
8,349
12,822
8,099
4,387
13,588
26,910
7,821
11,637
352
335
752
1,134
287
1,152
592
56
1,279
1,100
132
1,581
475
517
681
1,203
358
1,251
905
403
1,428
1,385
374
1,477
764
658
1,172
2,120
354
999
493
100
382
3,719
859
880
601
402
992
4,294
907
1,634
397
576
2,023
2,802
561
775
2
3
4
5
10
11
12
13
14
15
Type of issue
General obligation
U.S. government loans2
Revenue
U.S. government loans2
1. Par amounts of long-term issues based on date of sale.
2. Consists of tax-exempt issues guaranteed by the Farmers Home Administration.
1.46
SOURCE. Public Securities Association.
NEW SECURITY ISSUES Corporations
Millions of dollars
Type of issue or issuer,
or use
1984
1981
1982
1983
Mar.
Apr.
• May
June
July
Aug.
Sept.
Oct.
1 All issues'
70,441
84,638
98,857
5,442
6,069
4,051
7,268
7,600
10,891
7,729
12,239
2 Bonds
45,092
54,076
47,278
3,346
4,284
2,242
5,047
6,268
8,837
6,196
10,232
Type of offering
3 Public
4 Private placement
38,103
6,989
44,278
9,798
47,278
n.a.
3,346
n.a.
4,284
n.a.
2,242
n.a.
5,047
n.a.
6,268
n.a.
8,837
n.a.
6,196
n.a.
10,232
n.a.
12,325
5,229
2,052
8,963
4,280
12,243
12,822
5,442
1,491
12.327
2,390
19,604
7,842
5,166
1,039
7,241
3,159
22,829
68
258
180
521
200
2.119
691
1,096
69
495
0
1,932
383
221
0
100
0
1,538
1,440
531
225
475
0
2,376
950
865
40
650
31
3,731
2,484
776
183
765
0
4,628
1,594
576
200
765
0
3,067
2,989
988
161
1,150
240
4,704
11 Stocks3
25,349
30,562
51,579
2,096
1,785
1,809
2,221
1,332
2,054
1,533
2,007
Type
12 Preferred
13 Common
1,797
23,552
5,113
25,449
7,213
44,366
227
1.869
339
1.446
579
1.230
244
1,977
209
1,123
334
1.720
155
1,378
555
1,452
5,074
7,557
779
5,577
1,778
4,584
5,649
7,770
709
7,517
2,227
6,690
14,135
13,112
2,729
5,001
1,822
14,780
387
486
105
134
18
966
165
732
62
188
94
544
442
718
84
116
16
433
584
316
1
282
11
1,027
204
382
28
136
0
582
258
558
0
44
123
1,071
212
378
87
92
9
755
712
489
16
146
69
575
5
6
7
8
9
10
14
15
16
17
18
19
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures, which represent gross proceeds of issues maturing in more than one
year, 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 1933,
employee stock plans, investment companies other than closed-end, intracorporate transactions, and sales to foreigners.
2. Data for 1983 include only public offerings.
3. Beginning in August 1981, gross stock offerings include new equity volume
from swaps of debt for equity.
SOURCE. Securities and Exchange Commission and the Board of Governors of
the Federal Reserve System.
Securities Market and Corporate Finance
1.47
OPEN-END INVESTMENT COMPANIES
Millions of dollars
A37
Net Sales and Asset Position
1984
Item
1982
1983
Apr.
Mar.
May
June
July
Aug.
Sept.r
Oct.
INVESTMENT COMPANIES1
1 Sales of own shares2
2 Redemptions of own shares3
3 Net sales
45,675
30,078
15,597
84,793
57,120
27,673
8,857
5,339
3,518
9,549
7,451
2,098
8.657
5.993
2,664
8,397
6,156
2,241
7,550
5,777
1.773
9,018
6,497
2,521
8,215
6,185
2,030
9,582
6,760
2,822
4 Assets 4
5
Cash position5
6
Other
76,841
6,040
70,801
113,599
8,343
105,256
114,537
10,406
104.131
116,812
10,941
105.871
111,071
10.847
100,224
115,034
11,907
103,127
115.481
11,620
103,861
128,209
12,698
115,511
129,657
13,221
116,436
131,539
11,383
120,156
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.
1.48
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.
1982
Account
1981
1982
1983
1984
1983
Q4
Ql
Q2
Q3
Q4
Ql
Q2
Q3r
2
3
4
5
6
1 Corporate profits with inventory valuation and
capital consumption adjustment
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
189.9
221.1
81.1
140.0
66.5
73.5
159.1
165.5
60.7
104.8
69.2
35.6
225.2
203.2
75.8
127.4
72.9
54.5
151.6
155.8
55.0
100.8
70.2
30.6
179.1
161.7
59.1
102.6
71.1
31.4
216.7
198.2
74.8
123.4
71.7
51.7
245.0
227.4
84.7
142.6
73.3
69.3
260.0
225.5
84.5
141.1
75.4
65.6
277.4
243.3
92.7
150.6
77.7
72.9
291.1
246.0
95.8
150.2
79.9
70.2
282.8
224.8
83.1
141.7
81.3
60.3
7 Inventory valuation
8 Capital consumption adjustment
-23.6
-7.6
-9.5
3.1
-11.2
33.2
-12.6
8.4
-4.3
21.7
-12.1
30.6
-19.3
36.9
-9.2
43.6
-13.5
47.6
-7.3
52.3
-.2
58.3
SOURCE. Survey of Current Business (Department of Commerce).
1.49
NONFINANCIAL CORPORATIONS
Billions of dollars, except for ratio
Assets and Liabilities
1983
Account
1978
1979
1980
1981
1984
1982
Q2
Q3
Q4
Ql
Q2
1,043.7
1,214.8
1,327.0
1,418.4
1,432.7
1,468.0
1,522.8
1,557.3
1,600.6
1,630.8
105.5
17.2
388.0
431.8
101.1
118.0
16.7
459.0
505.1
116.0
126.9
18.7
506.8
542.8
131.8
135.5
17.6
532.0
583.7
149.5
147.0
22.8
519.2
578.6
165.2
147.9
28.2
539.3
576.2
176.4
150.5
27.0
565.0
597.3
183.0
165.8
30.6
577.8
599.3
183.7
159.3
35.1
596.9
623.)
186.3
155.5
36.8
612.6
633.3
192.5
7 Current liabilities
669.5
807.3
889.3
970.0
976.8
990.2
1,026.6
1,043.0
1,079.0
1,111.5
8 Notes and accounts payable
9 Other
383.0
286.5
460.8
346.5
513.6
375.7
546.3
423.7
543.0
433.8
536.6
453.6
559.4
467.2
577.9
465.2
584.1
495.0
606.0
505.5
10 Net working capital
374.3
407.5
437.8
448.4
455.9
477.8
496.3
514.3
521.6
519.3
11 MEMO: Current ratio1
1.559
1.505
1.492
1.462
1.467
1.483
1.483
1.493
1.483
1.467
1 Current assets
2
3
4
5
6
Cash
U.S. government securities
Notes and accounts receivable
Inventories
Other
1. Ratio of total current assets to total current liabilities.
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 the July 1978 BULLETIN, pp. 5 3 3 - 3 7 .
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, Board of Governors of the Federal Reserve System, Washington, D.C.
20551.
SOURCE. Federal Trade Commission and Bureau of the Census.
A38
DomesticNonfinancialStatistics • February 1985
1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment •
Billions of dollars; quarterly data are at seasonally a d j u s t e d annual rates.
1984
1983
1982
Industry'
1 Total nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
Railroad
S
6 Air
7 Other
Public utilities
8 Electric
9 Gas and other
10 Commercial and other2
1984
1983
Q1
Q2
Q3
Q4
Ql
Q2
Q3
Q41
282.71
269.22
307.59
261.71
261.16
270.05
283.96
293.15
302.70
313.11
321.40
56.44
63.23
51.78
59.75
63.02
67.99
50.74
59.12
48.48
60.31
53.06
58.06
54.85
61.50
58.94
63.84
60.20
67.46
65.44
69.06
67.49
71.60
15.45
11.83
12.90
12.03
10.91
11.93
12.43
13.95
12.13
12.61
12.92
4.38
3.93
3.64
3.92
3.77
3.50
5.32
3.02
4.57
3.35
4.09
3.60
3.64
4.10
3.14
4.07
3.57
3.36
4.63
3.32
3.91
4.41
2.77
4.28
5.64
2.98
4.33
5.80
3.16
4.69
5.41
3.18
4.98
33.40
8.55
93.68
34.99
7.00
92.67
34.72
9.45
106.61
33.97
7.64
87.17
34.86
6.62
89.10
35.84
6.38
93.79
35.31
7.37
100.62
35.74
7.87
101.35
35.30
9.30
105.35
34.64
10.11
107.61
33.19
10.51
112.12
ATrade and services are no longer being reported separately. They are included
in Commercial and other, line 10.
1. Anticipated by business.
1.51
DOMESTIC FINANCE COMPANIES
2. "Other" consists of construction; wholesale and retail trade; finance and
insurance; personal and business services; and communication.
SOURCE. Survey of Current Business (Department of Commerce).
Assets and Liabilities
Billions of dollars, end of period
1984
1983
Account
1978
1979
1980
1981
1982
Q4
Q3
Q2
QL
Q3
ASSETS
1
2
3
4
5
6
7
8
Accounts receivable, gross
Consumer
Business
Total
LESS: Reserves for unearned income and losses... .
Accounts receivable, net
Cash and bank deposits
Securities
All other
52.6
63.3
116.0
15.6
100.4
3.5 1
1.3 Y
17.3 J
65.7
70.3
136.0
20.0
116.0
73.6
72.3
145.9
23.3
122.6
85.5
80.6
166.1
28.9
137.2
89.5
81.0
170.4
30.5
139.8
92.3
86.8
179.0
30.1
148.9
92.8
95.2
188.0
30.6
157.4
96.9
101.1
198.0
31.9
166.1
99.6
104.2
203.8
33.4
170.4
103.4
103.2
206.6
34.7
171.9
24.9'
27.5
34.2
39.7
45.0
45.3
47.1
48.1
49.1
9
Total assets
122.4
140.9
150.1
171.4
179.5
193.9
202.7
213.2
218.5
220.9
6.5
34.5
8.5
43.3
13.2
43.4
15.4
51.2
18.6
45.8
17.0
49.7
19.1
53.6
14.7
58.4
15.3
62.0
16.0
60.1
8.1
43.6
12.6
17.2
8.2
46.7
14.2
19.9
7.5
52.4
14.3
19.4
9.6
54.8
17.8
22.8
8.7
63.5
18.7
24.2
8.7
66.2
24.4
27.9
11.3
65.4
27.1
26.2
12.2
68.7
29.8
29.4
15.0
67.6
29.0
29.6
15.1
71.2
29.2
29.2
122.4
140.9
150.1
171.4
179.5
193.9
202.7
213.2
218.5
220.9
LIABILITIES
1?
13
14
15
Bank loans
Commercial paper
Debt
Short-term, n.e.c
Long-term, n.e.c
Other
Capital, surplus, and undivided profits
16
Total liabilities and capital
10
11
1. Beginning Q1 1979, asset items on lines 6, 7, and 8 are combined.
NOTE. Components may not add to totals due to rounding.
1.52
DOMESTIC FINANCE COMPANIES
These data also appear in the Board's G.20 (422) release. For address, see
inside front cover.
Business Credit
Millions of dollars, seasonally a d j u s t e d e x c e p t as noted
Type
Changes in accounts
receivable
Extensions
Repayments
1984
1984
1984
Accounts
receivable
outstanding
Oct. 31,
1984'
Aug.
1 Total
2
3
4
5
Retail automotive (commercial vehicles)
Wholesale automotive
Retail paper on business, industrial, and farm equipment
Loans on commercial accounts receivable and factored commercial accounts receivable
6 All other business credit
1. Not seasonally adjusted.
Sept.
Oct.
Aug.
Sept.
Oct.
Aug.
Sept.
Oct.
106,279
3,032
-203
1,215
30,274
22,676
28,346
27,242
22,879
27,131
26,483
15,566
31,126
489
2,533
7
21
-1,429
554
257
971
-564
2,232
10,803
1,589
1.840
6,050
1,493
2,097
9,860
1,064
1,743
8,270
1,582
1,819
7,479
939
1,840
8,889
1,628
11.117
21,987
107
-104
124
527
9
542
13,168
2,482
10.815
2,478
12,441
2,884
13,061
2,586
10,691
1,951
12,432
2,342
NOTE. These data also appear in the Board's G.20 (422) release. For address,
see inside front cover.
Real Estate
1.53
MORTGAGE
A39
MARKETS
Millions of dollars; exceptions noted.
1984
May
June
July
Aug.
Sept.
Oct.
Nov.
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 (percent per annum)
7 FHLBB series3
8 HUD series4
90.4
65.3
74.8
27.7
2.67
14.16
94.6
69.8
76.6
27.6
2.95
14.47
92.8
69.5
77.1
26.7
2.40
12.20
93.9
72.8
79.8
27.6
2.63
11.68
93.4
72.5
79.9
28.1
2.58
11.61
98.3
74.6
78.4
28.2
3.07
11.91
94.3
71.8
78.1
28.0
2.82
11.89
97.4
72.5
77.3
27.6
2.63
12.03
98.4'
74. (K
78.2'
27.6''
2.58'
12.27'
99.1
74.1
77.2
27.7
2.62
12.30
14.74
16.52
15.12
15.79
12.66
13.43
12.18
14.38
12.10
14.65
12.50
14.53
12.43
14.24
12.53
13.98
12.77
13.59
12.80
13.20
16.31
15.29
15.30
14.68
13.11
12.25
15.01
13.67
14.91
14.14
14.58
13.88
14.21
13.56
13.99
13.36
13.43
13.09
12.90
12.71
SECONDARY MARKETS
Yield (percent per annum)
9 FHA mortgages (HUD series)5
10 GNMA securities6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12 FHA/VA-insured
13 Conventional
58,675
39.341
19,334
66.031
39.718
26,312
74,847
37,393
37.454
82.697
35,309
47,388
83.243
35.153
48,090
83,858
35,049
48,809
84,193
34,938
49,255
84,851
34,844
50.006
85,539
34,791
50.749
Mortgage transactions (during period)
14 Purchases
15 Sales
6,112
1
15,116
2
17,554
3,528
1,379
0
1.209
0
1,226
0
820
0
1,145
0
1,087
0
Mortgage commitments1
16 Contracted (during period)
17 Outstanding (end of period)
9.331
3,717
22,105
7,606
18,607
5,461
1,233
4,981
1.995
5,640
1,976
6,281
1,227
6,332
1.142
6,235
1.638
6,656
Mortgage holdings (end of period)*
18 Total
19 FHA/VA
20 Conventional
5,231
1.065
4,166
5,131
1,027
4,102
5,996
974
5,022
9,224
918
8,306
9.478
912
8.566
9,154
906
8,248
9,331
901
8.431
9,447
896
8,551
Mortgage transactions (during period)
21 Purchases
22 Sales
3,800
3,531
23.673
24,170
23,089
19.686
987
829
2,204
1.854
1,288
1,573
1,821
1,570
1.262
1,137
6,896
3,518
28,179
7.549
32,852
16.964
1,966
19.139
2,712
19.649
3,929
22,311
3,130
23,639
3,440
25.468
n a.
FEDERAL HOME LOAN MORTGAGE CORPORATION
n a.
n.a.
9
Mortgage commitments
23 Contracted (during period)
24 Outstanding (end of period)
1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; compiled by the Federal Home Loan Bank
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages; from Department of Housing and Urban Development.
5. Average gross yields on 30-year, minimum-downpayment. Federal Housing
Administration-insured first mortgages for immediate delivery in the private
secondary market. 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 guaranteed, mortgage-backed, fully modified pass-through securities, assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying the
prevailing ceiling rate. Monthly figures are unweighted averages of Monday
quotations for the month.
7. Includes some multifamily and nonprofit hospital loan commitments in
addition to 1- to 4-family loan commitments accepted in FNMA's free market
auction system, and through the FNMA-GNMA tandem plans.
8. Includes participation as well as whole loans.
9. Includes conventional and government-underwritten loans. FHLMC's mortgage commitments and mortgage transactions include activity under mortgage/
securities swap programs, while the corresponding data for FNMA exclude swap
activity.
A40
1.54
DomesticNonfinancialStatistics • February 1985
MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
1983
Type of holder, and type of property
1981
1982
Q4
Q3
1
2
3
4
5
All holders
1- to 4-family
Multifamily
Commercial
6 Major financial institutions
7 Commercial banks1
8
1- to 4-family
9
Multifamily
10
Commercial
11
Farm
1984
1983
Ql
Q2
Q3
1,583,264
1,065,294
136,354
279.889
101.727
1,655,036
1,105,717
140.551
302,055
106.713
1,826,395
1,214,592
150,949
351,287
109,567
1,775,116
1,182,071
147,052
336.981
109,012
1,826,395
1,214,592
150,949
351,287
109,567
1,869,442
1,244,157
154,338
360,888
110,059
1,926,578
1,278,575
158,835
378,218
110,950
1,982,641'
1,314,134'
162,582
394,243'
111,682'
1,040,827
284,536
170,013
15,132
91.026
8,365
1,023,611
300.203
173.157
16.421
102,219
8,406
1,109,963
328,878
181,672
18,023
119,843
9,340
1,079,604
320,299
178,054
17,424
115,692
9,129
1.109,963
328,878
181,672
18,023
119,843
9,340
1,136,168
338,877
184,925
19,689
124,571
9,692
1,179,553
351,459
189,718
20.455
131,235
10,051
1,219,737'
364,540
195,029
21,326
137,796
10,389
99,997
68,187
15.960
15,810
40
97,805
66,777
15,305
15,694
29
136,054
96.569
17,785
21,671
29
129,644
92,182
17,588
19,846
28
136,054
96,569
17,785
21,671
29
143,180
101,868
18,441
22,841
30
147,517
105,063
18,752
23,672
30
155,115
110,528
19,566
24,990
31
12
13
14
13
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
518,547
433,142
37,699
47,706
483,614
393,323
38,979
51.312
493,432
389,811
42,435
61,186
482,305
381,744
41,334
59,227
493,432
389,811
42,435
61,186
502,143
395,940
43,435
62,768
526,732
412,958
45,299
68,475
544,280
424,539
46,808
72,933
21
22
23
24
25
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
137,747
17,201
19.283
88.163
13,100
141,989
16.751
18,856
93,547
12,835
151,599
15,385
19.189
104,279
12,746
147,356
15.534
18,857
100,209
12.756
151,599
15,385
19,189
104,279
12,746
151,968
14,971
19,153
105,270
12,574
153,845
14,437
19,028
107,796
12,584
155,802'
14,204'
18,828'
110,149'
12,621'
126,094
4,765
693
4.072
138,138
4,227
676
3,551
147,370
3,395
630
2,765
142,224
3,475
639
2.836
147,370
3,395
630
2,765
150,784
2,900
618
2,282
152,669
2,715
605
2,110
153,407'
2,389'
594'
1,795'
26 Federal and related agencies
27
Government National Mortgage Association
28
1- to 4-family
29
Multifamily
30
31
32
33
34
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
2,235
914
473
506
342
1,786
783
218
377
408
2,141
1,159
173
409
400
600
211
32
113
244
2,141
1,159
173
409
400
2,094
1,005
303
319
467
1,344
281
463
81
519
738
206
126
113
293
35
36
37
Federal Housing and Veterans
Administration
1- to 4-family
Multifamily
5.999
2.289
3,710
5,228
1,980
3,248
4,894
1,893
3,001
5,050
2,061
2,989
4,894
1,893
3,001
4,832
1,956
2,876
4,753
1,894
2,859
4,801'
1,967'
2,834'
38
39
40
Federal National Mortgage Association
1- to 4-family
Multifamily
61,412
55,986
5,426
71,814
66,500
5,314
78,256
73,045
5,211
75,174
69,938
5,236
78,256
73.045
5,211
80,975
75,770
5.205
83,243
77,633
5,610
84,850
79,175
5,675
41
42
43
Federal Land Banks
1- to 4-family
Farm
46,446
2,788
43,658
50,350
3.068
47,282
51,052
3,000
48,052
51,069
3,008
48.061
51,052
3,000
48,052
51,004
2,982
48,022
51,136
2,958
48,178
51,182
2,954
48,228
44
45
46
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
5.237
5.181
56
4.733
4,686
47
7,632
7.559
73
6,856
6,799
57
7,632
7,559
73
8,979
8,847
132
9,478
8,931
547
9,447'
8,841'
606'
163,000
105,790
103,007
2,783
216,654
118.940
115,831
3.109
285.073
159,850
155,801
4,049
272.611
151,597
147,761
3.836
285,073
159,850
155,801
4,049
296,481
166,261
161.943
4,318
305,051
170,893
166,415
4,478
317,548'
175,770'
171,095'
4,675'
19,853
19,501
352
42,964
42,560
404
57.895
57,273
622
54,152
53,539
613
57,895
57,273
622
59,376
58,776
600
61,267
60,636
631
63,964'
63,352'
612'
717
717
n.a.
14,450
14,450
n.a.
25,121
25,121
n.a.
23,819
23,819
n.a.
25,121
25,121
n.a.
28,354
28,354
n.a.
29,256
29,256
n.a.
32,888
32,730
158
36,640
18.378
3,426
6,161
8,675
40,300
20,005
4,344
7,011
8,940
42,207
20,404
5.090
7,351
9.362
43,043
21,083
5.042
7,542
9,376
42,207
20,404
5,090
7,351
9,362
42,490
20,573
5,081
7,456
9,380
43,635
21,331
5,081
7,764
9,459
44,926
21,595
5,618
7,844
9,869
253,343
167,297
27,982
30,517
27,547
276,633
185,170
30,755
31,895
28,813
283,989
185,270
32.533
36.548
29.638
280,677
185,699
31,208
34,352
29,418
283,989
185,270
32,533
36,548
29,638
286,009
185,629
32,823
37,663
29,894
289.305
186,459
33,522
39,195
30,129
291,949
187,325
33,955
40,418
30,251
47 Mortgage pools or trusts2
48
Government National Mortgage Association
49
1- to 4-family
50
Multifamily
51
52
53
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
54
55
56
Federal National Mortgage Association3
1- to 4-family
Multifamily
57
58
59
60
61
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
62 Individual and others4
63
1- to 4-family5
64
Multifamily
65
Commercial
66
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. Outstanding balances on FNMA's issues of securities backed by pools of
conventional mortgages held in trust. Implemented by FNMA in October 1981.
4. 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
for which separate data are not readily available.
5. Includes estimate of residential mortgage credit provided by individuals.
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.
Consumer Installment
1.55
Credit
A41
CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net ChangeA
Millions of dollars
1984
Holder, and type of credit
1981
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Amounts outstanding (end of period)
335,691
355,849
396,082
402,466
407,671
418,080
427,565
435,367
443,537
450,131
455,318
147,622
89,818
45,953
31,348
12,410
4,403
4,137
152,490
98,693
47,253
32,735
15,823
4,063
4,792
171,978
102,862
53,471
35,911
21,615
4,131
6,114
177.625
101,619
55,892
33,208
23,071
3.944
7.107
181,022
101.119
56.962
33.327
23.957
3.955
7.329
186,668
102.967
58.517
33.730
24,915
4,020
7,263
191,519
104,460
59,893
34,206
25,837
4,289
7.361
195.265
106,219
61.151
34.022
26,767
4,472
7,471
199.654
106,881
62,679
34.294
27,918
4,452
7,659
202,452
108.437
63,808
34,426
28,868
4,328
7,812
204,582
109,289
64,716
34,802
29,756
4,205
7,968
By major type of credit
9 Automobile
10 Commercial banks
11
Indirect paper
17
Direct loans
13 Credit unions
14 Finance companies
125,331
58,081
34,375
23,706
21,975
45,275
131,086
59,555
34,755
23,472
22,596
48,935
142,449
67,557
n.a.
n.a.
25,574
49,318
146.047
71,237
n.a.
n.a.
26,732
48.078
147.944
73.016
n.a.
n.a.
27.244
47.684
152,225
75,787
n.a.
n.a.
27.988
48.450
155,937
78.018
n.a.
n.a.
28.646
49,273
159.649
80.103
n.a.
n.a.
29.248
50.298
162.038
81,786
n.a.
n.a.
29,979
50,273
164,361
82,706
n.a.
n.a.
30,519
51,136
166,028
83,620
n.a.
n.a.
30,953
51,455
15 Revolving
16 Commercial banks
17 Retailers
18 Gasoline companies
64,500
32,880
27,217
4,403
69,998
36,666
29,269
4,063
80,823
44.184
32,508
4,131
79.110
45.235
29,931
3.944
80.184
46.149
30.080
3.955
82.436
47,936
30,480
4,020
84,598
49.374
30.935
4.289
85,588
50,358
30,758
4,472
87.788
52,313
31,023
4.452
89,742
54,258
31,156
4,328
91,017
55,276
31,536
4,205
19 Mobile home
20 Commercial banks
21
Finance companies
V
Savings and loans
23
Credit unions
17,958
10,187
4,494
2,788
489
22,254
9,605
9,003
3,143
503
23,680
9,842
9,365
3,906
567
23,661
9,589
9,333
4.147
592
23.850
9.580
9.361
4.306
603
24.104
9,573
9,434
4.478
619
24,427
9.621
9.528
4,644
634
24,751
9.681
9.612
4,811
647
25,178
9,711
9.786
5.018
663
25,482
9,761
9,857
5,189
675
25,484
9,627
9,890
5,282
685
127,903
46,474
40,049
23,490
4,131
9,622
4,137
132,511
46,664
40,755
24,154
3,466
12,680
4,792
149,130
50,395
44,179
27,330
3,403
17,709
6,114
153.648
51.564
44,208
28.568
3,277
18.924
7,107
155.693
52.277
44.074
29,115
3.247
19,651
7,329
159,315
53,372
45,083
29.910
3,250
20.437
7,263
162,603
54,506
45,659
30,613
3,271
21,193
7,361
165.379
55,123
46,309
31,256
3,264
21.956
7,471
168,533
55,844
46,822
32,037
3,271
22,900
7,659
170,546
55,727
47,444
32,614
3,270
23,679
7,812
172,789
56,059
47,944
33,078
3,266
24,474
7,968
1 Total
7
3
4
5
6
7
8
By major holder
Commercial banks
Finance companies
Credit unions
Retailers2
Savings and loans
Gasoline companies
Mutual savings banks
74 Other
75
Commercial banks
26
Finance companies
77
Credit unions
78
Retailers
7.9 Savings and loans
30
Mutual savings banks
Net change (during period)3
18,217
17,886
40,233
5,870
6,408
10,233
7,825
7,106
5,998
4,283
6,275
607
13,062
1,913
1,103
1,682
-65
-85
4,442
4,504
1,298
651
2,290
-340
251
19,488
4,169
6,218
3,176
5,792
68
1,322
3,422
-193
1,230
355
813
2
242
4.015
-350
1.529
278
868
2
66
6,065
1.304
1.453
476
979
46
-90
3,835
1,353
962
471
1,069
89
46
3,192
1.402
1.566
-101
847
-40
240
2,631
1,111
844
206
1,124
-51
133
1,384
1,204
686
132
769
-135
243
2,756
1,191
1,216
103
823
90
96
8,495
-3,455
-858
-2,597
914
11,033
4,898
-9
225
-234
622
3,505
11,363
8,002
0
0
2,978
329
326
432
n.a.
n.a.
660
-766
2.158
1.766
n.a.
n.a.
734
-342
3.689
2,807
n.a.
n.a.
695
187
2,897
1,907
n.a.
n.a.
461
529
3,422
1,852
n.a.
n.a.
750
820
1.777
1,150
n.a.
n.a.
405
222
1,317
434
n.a.
n.a.
327
556
2,357
1,057
n.a.
n.a.
581
719
45 Revolving
46
Commercial banks
47
Retailers
48
Gasoline companies
4,467
3,115
1,417
-65
4,365
3,808
897
-340
10,825
7,518
3,239
68
2,962
2,613
347
2
1,868
1,568
298
2
2,817
2.298
473
46
1,569
1,047
433
89
640
764
-84
-40
1,314
1,159
206
-51
1,324
1,323
136
-135
1,496
1,279
127
90
49 Mobile home
50 Commercial banks
51
Finance companies
57
Savings and loans
53
Credit unions
1,049
-186
749
466
20
609
-508
471
633
14
1,426
237
430
763
64
285
-85
218
141
10
285
27
110
132
16
302
-50
156
183
13
454
10
258
174
12
462
31
185
230
16
573
4
346
214
9
318
4
150
157
7
-216
-91
-210
72
13
54 Other
55 Commercial banks
56 Finance companies
57 Credit unions
58
Retailers
59 Savings and loans
60 Mutual savings banks
4,206
1,133
1,280
975
-314
1,217
-85
3,224
372
528
662
-246
1,657
251
16,619
3,731
3,424
3,176
-63
5,029
1,322
2,298
463
355
558
8
673
242
2.097
653
-118
780
-20
735
66
3.425
1,010
961
745
3
796
-90
2,905
871
566
489
38
895
46
2.582
545
397
800
-17
617
240
2,334
318
543
430
0
910
133
1,324
-377
498
352
-4
612
243
2,638
511
682
622
-24
751
96
31 Total
V
33
34
35
36
37
38
By major holder
Commercial banks
Finance companies
Credit unions
Retailers2
Savings and loans
Gasoline companies
Mutual savings banks
By major type of credit
39 Automobile
40
Commercial banks
41
Indirect paper
42
Direct loans
43 Credit unions
44
Finance companies
• These data have been revised from July 1979 through February 1984.
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. For 1982 and earlier, net change equals extensions, seasonally adjusted less
liquidations, seasonally adjusted. Beginning 1983, net change equals outstandings,
seasonally adjusted less outstandings of the previous period, seasonally adjusted.
NOTE. Total consumer noninstallment credit outstanding—credit scheduled to
be repaid in a lump sum. including single-payment loans, charge accounts, and
service credit—amounted to. not seasonally adjusted. $80.7 billion at the end of
1981, $85.9 billion at the end of 1982, and $96.9 billion at the end of 1983.
These data also appear in the Board's G.I9 (421) release. For address, see
inside front cover.
A42
DomesticNonfinancialStatistics • February 1985
1.56 TERMS OF CONSUMER INSTALLMENT CREDIT
Percent unless noted otherwise
1981
1982
1983
May
June
July
Aug.
Sept
Oct.
Nov.
INTEREST RATES
1
2
3
4
5
6
Commercial banks1
48-month new car2
24-month personal
120-month mobile home2
Credit card
Auto finance companies
New car
Used car
16.54
18.09
17.45
17.78
16.83
18.65
18.05
18.51
16.17
20.00
45.4
35.8
13.92
14.08
16.75
15.72
18.81
15.91
18.73
13.53
16.35
15.54
18.71
16.15
20.75
12.58
18.74
14.17
17.60
14.33
17.64
14.68
17.77
15.01
17.99
15.16
18.10
15.18
18.19
46.0
34.0
45.9
37.9
47.7
39.7
48.2
39.8
48.6
39.8
49.2
39.8
49.5
39.9
49.7
39.9
85.3
90.3
92.0
8,178
4,746
8,787
5,033
9,262
5,675
9,311
5,774
9,377
5,763
9,409
5,753
9,402
5,792
9,449
5,826
16.68
13.91
16.63
15.60
18.82
OTHER TERMS 3
7
8
9
10
11
12
Maturity (months)
New car
U sed car
Loan-to-value ratio
New car
Used car
Amount financed (dollars)
New car
Used car
7,339
4,343
1. Data for midmonth of quarter only.
2. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
3. At auto finance companies.
86.0
92
NOTE. These data also appear in the Board's G.19 (421) release. For address,
see inside front cover,
Flow of Funds
1.57
A43
FUNDS RAISED IN U.S. CREDIT MARKETS
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1981
H2
1982
1984
1983
HI
H2
HI
H2
HI
Nonfinancial sectors
369.8
386.0
344.6
380.4
404.1
526.4
368.0
358.1
450.1
448.9
563.8
688.2
53.7
55.1
-1.4
37.4
38.8
-1.4
79.2
79.8
-.6
87.4
87.8
-.5
161.3
162.1
-.9
186.6
186.7
-.1
88.1
88.5
-.4
104.1
105.5
-1.4
218.4
218.8
-.4
222.0
222.1
-.1
151.1
151.2
-.1
172.8
173.1
-.2
5 Private domestic nonfinancial sectors
Debt capital instruments
6
7
Tax-exempt obligations
8
Corporate bonds
Mortgages
9
10
Home mortgages
11
Multifamily residential
12
Commercial
13
Farm
316.2
199.7
28.4
21.1
150.2
112.2
9.2
21.7
7.2
348.6
211.2
30.3
17.3
163.6
120.0
7.8
23.9
11.8
265.4
192.0
30.3
26.7
135.1
96.7
8.8
20.2
9.3
293.1
159.1
22.7
21.8
114.6
76.0
4.3
24.6
9.7
242.8
158.9
53.8
18.7
86.5
52.5
5.5
23.6
5.0
339.8
239.3
56.3
15.7
167.3
108.7
8.4
47.3
2.9
279.9
140.3
24.7
16.8
98.8
62.3
3.8
22.9
9.8
254.0
140.7
43.9
12.0
84.8
53.6
5.1
19.7
6.5
231.7
177.2
63.7
25.3
88.2
51.3
5.8
27.5
3.5
266.9
214.4
62.8
23.0
128.6
83.8
2.8
40.3
1.6
412.7
264.2
49.7
8.4
206.0
133.6
13.9
54.3
4.1
515.4
268.5
38.1
24.0
206.4
132.5
16.6
55.3
2.1
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
116.5
48.8
37.4
5.2
25.1
137.5
45.4
51.2
11.1
29.7
73.4
6.3
36.7
5.7
24.8
134.0
26.7
54.7
19.2
33.4
83.9
21.0
55.5
-4.1
11.5
100.5
51.3
27.3
-1.2
23.1
139.6
21.9
65.1
24.1
28.6
113.2
20.6
69.0
10.0
13.6
54.6
21.4
42.0
-18.2
9.4
52.5
35.9
13.3
-10.6
13.9
148.5
66.6
41.2
8.3
32.3
246.9
101.4
91.6
31.5
22.4
19
20
21
22
23
24
By borrowing sector
State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
316.2
16.5
172.0
14.6
32.4
80.6
348.6
17.6
179.3
21.4
34.4
96.0
265.4
17.2
122.1
14.4
33.7
78.1
293.1
6.2
127.5
16.3
40.2
102.9
242.8
31.3
94.5
7.6
39.5
70.0
339.8
36.7
175.4
4.3
63.9
59.5
279.9
7.3
113.1
12.2
38.7
108.7
254.0
24.1
94.7
9.6
36.6
89.0
231.7
38.5
94.3
5.6
42.3
51.0
266.9
41.9
134.8
.8
50.1
39.3
412.7
31.6
216.0
7.9
77.6
79.6
515.4
19.0
231.3
.7
82.8
181.5
25 Foreign net borrowing in United States
26
Bonds
27
Bank loans n.e.c
28
Open market paper
29
U.S. government loans
33.8
4.2
19.1
6.6
3.9
20.2
3.9
2.3
11.2
2.9
27.2
.8
11.5
10.1
4.7
27.2
5.4
3.7
13.9
4.2
15.7
6.7
-6.2
10.7
4.5
18.9
3.8
4.9
6.0
4.3
24.4
7.6
6.2
7.1
3.5
10.2
2.4
-7.6
12.5
3.0
21.2
11.0
-4.7
9.0
6.0
15.3
4.6
11.3
-4.6
3.9
22.5
2.9
-1.5
16.5
4.6
18.8
1.1
-7.0
18.9
5.8
403.6
406.2
371.8
407.6
419.8
545.3
392.4
368.3
471.4
504.2
586.3
707.0
1 Total net borrowing by domestic nonfinancial sectors . . . .
By sector and instrument
2 U.S. government
3 Treasury securities
Agency issues and mortgages
4
30 Total domestic plus foreign
Financial sectors
31 Total net borrowing by financial sectors
By instrument
32 U.S. government related
33
Sponsored credit agency securities
34 Mortgage pool securities
36 Private financial sectors
37 Corporate bonds
38 Mortgages
39
Bank loans n.e.c
40
Open market paper
41
Loans from Federal Home Loan Banks
By sector
42 Sponsored credit agencies
43 Mortgage pools
44 Private financial sectors
45
Commercial banks
46
Bank affiliates
47
Savings and loan associations
48
Finance companies
49
REITs
74.1
82.4
62.9
84.1
69.0
90.7
83.9
84.2
53.8
74.0
107.3
121.0
37.1
23.1
13.6
.4
37.0
7.5
.1
2.3
14.6
12.5
47.9
24.3
23.1
.6
34.5
7.8
47.4
30.5
15.0
1.9
36.7
-.8
-.5
.9
20.9
16.2
64.9
14.9
49.5
.4
4.1
2.5
.1
1.9
-1.2
.8
67.8
1.4
66.4
60.0
22.4
36.8
.8
24.2
-2.5
.1
3.2
12.3
11.1
66.2
-4.1
70.3
69.4
6.9
62.5
69.1
30.8
38.3
-16.0
7.6
.1
.6
-14.7
-9.5
7.8
15.2
38.0
18.9
51.9
14.9
-.2
13.0
-7.0
50.9
33.2
15.3
2.4
33.0
-1.2
-.2
-.1
19.5
15.1
69.7
7.5
62.2
-.5
18.0
9.2
44.8
24.4
19.2
1.2
18.1
7.1
-.1
-.9
4.8
7.1
-2.5
7.2
-12.1
2.2
18.8
-2.0
.1
21.1
15.7
23.5
13.6
37.0
1.3
7.2
13.5
17.6
-1.4
24.8
23.1
34.5
1.6
6.5
12.6
16.5
-1.3
25.6
19.2
18.1
.5
6.9
7.4
5.8
-2.2
32.4
15.0
36.7
.4
8.3
15.5
12.8
.2
15.3
49.5
4.1
1.2
1.9
2.5
-.9
.1
1.4
66.4
22.9
.5
8.6
-2.7
17.0
.2
35.6
15.3
33.0
.5
9.7
13.7
9.4
.2
23.2
36.8
24.2
.7
9.7
14.3
.1
7.5
62.2
-16.0
1.7
-5.8
-9.3
-1.9
.1
-4.1
70.3
7.8
.8
6.1
-10.0
11.4
.2
6.9
62.5
38.0
.2
11.1
4.5
22.7
.2
30.8
38.3
51.9
4.8
20.0
17.8
9.9
.1
452.5
163.5
43.9
11.8
84.8
20.6
64.6
34.8
28.5
525.1
288.3
63.7
43.8
88.2
21.4
37.9
-23.9
5.9
578.2
288.4
62.8
42.8
128.5
35.9
22.1
-8.0
5.7
693.6
220.5
49.7
30.3
206.0
66.6
41.9
43.6
35.0
828.0
242.1
38.1
40.0
206.3
101.4
84.8
71.5
43.9
83.5
36.8
46.8
38.2
2.8
5.7
52.0
28.9
23.1
18.4
2.5
2.2
-37.5
44.8
-82.3
-84.5
2.9
-.8
*
22.9
17.1
*
*
*
*
*
All sectors
50 Total net borrowing
51
U.S. government securities
52
State and local obligations
53 Corporate and foreign bonds
54
Mortgages
55
Consumer credit
56
Bank loans n.e.c
57
Open market paper
58 Other loans
477.7
90.5
28.4
32.8
150.2
48.8
58.8
26.4
41.9
488.7
84.8
30.3
29.0
163.5
45.4
52.9
40.3
42.4
434.7
122.9
30.3
34.6
134.9
6.3
47.3
20.6
37.8
491.8
133.0
22.7
26.4
113.9
26.7
59.3
54.0
55.8
488.8
225.9
53.8
27.8
86.5
21.0
51.2
5.4
17.2
635.9
254.4
56.3
36.5
167.2
51.3
32.0
17.8
20.3
476.3
136.7
24.7
23.2
98.5
21.9
71.2
50.7
49.5
External corporate equity funds raised in United States
59 Total new share issues
60
Mutual funds
61
All other
62
Nonfinancial corporations
63
Financial corporations
64
Foreign shares purchased in United States
1.9
-.1
1.9
-.1
2.5
-.5
-3.8
.1
-3.9
-7.8
3.2
.8
22.2
5.2
17.1
12.9
2.1
2.1
-4.1
6.3
-10.4
-11.5
.8
.3
35.3
18.4
16.9
11.4
4.0
1.5
67.8
32.8
34.9
28.3
2.7
4.0
-17.4
5.7
-23.0
-23.8
1.1
-.4
23.3
12.5
10.9
7.0
3.9
-.1
47.2
24.3
22.9
15.8
4.1
3.0
A44
1.58
DomesticNonfinancialStatistics • February 1985
DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates.
1981
Transaction category, or sector
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to savings and loans
Other loans and securities
2
3
4
5
6
1978
1979
1980
1981
1982
1982
1983
1984
1983
H2
HI
H2
HI
H2
HI
369.8
386.0
344.6
380.4
404.1
526.4
368.0
358.1
450.1
488.9
563.8
688.2
102.3
36.1
25.7
12.5
28.0
75.2
-6.3
35.8
9.2
36.5
97.0
15.7
31.7
7.1
42.4
97.7
17.2
23.5
16.2
40.9
109.1
18.0
61.0
.8
29.3
117.1
27.6
76.1
-7.0
20.5
90.3
12.4
25.5
15.1
37.3
100.8
9.7
47.6
11.1
32.4
117.3
26.2
74.4
-9.5
26.2
119.7
40.5
80.1
-12.1
11.1
114.6
14.6
72.0
-2.0
29.9
124.0
33.3
52.0
15.7
23.0
7
8
9
10
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
17.1
40.3
7.0
38.0
19.0
53.0
7.7
-4.6
23.7
45.6
4.5
23.2
24.1
48.2
9.2
16.3
16.0
65.3
9.8
18.1
9.7
69.5
10.9
27.1
19.8
50.1
14.1
6.3
14.8
61.8
3.8
20.4
17.1
68.7
15.7
15.8
9.1
68.2
15.6
26.8
10.3
70.7
6.2
27.4
6.7
73.0
17.3
27.0
11
12
Agency and foreign borrowing not in line 1
Sponsored credit agencies and mortgage pools
Foreign
37.1
33.8
47.9
20.2
44.8
27.2
47.4
27.2
64.9
15.7
67.8
18.9
50.9
24.4
60.0
10.2
69.7
21.2
66.2
15.3
69.4
22.5
69.1
18.8
Private domestic funds advanced
13 Total net advances
14 U.S. government securities
15 State and local obligations
16 Corporate and foreign bonds
17 Residential mortgages
18 Other mortgages and loans
19 LESS: Federal Home Loan Bank advances
338.4
54.3
28.4
23.4
95.6
149.3
12.5
379.0
91.1
30.3
18.5
91.9
156.3
9.2
319.6
107.2
30.3
19.3
73.7
96.2
7.1
357.3
115.8
22.7
18.8
56.7
159.5
16.2
375.6
207.9
53.8
14.8
-3.2
103.2
.8
495.9
226.9
56.3
14.6
40.9
150.2
-7.0
353.0
124.3
24.7
15.9
40.6
162.7
15.1
327.5
153.7
43.9
-.1
11.0
130.2
11.1
423.8
262.0
63.7
29.6
-17.4
76.3
-9.5
450.8
247.8
62.8
22.9
6.4
98.7
-12.1
541.1
205.9
49.7
6.3
75.5
201.7
-2.0
652.2
208.8
38.1
18.2
97.0
305.9
15.7
Private financial intermediation
20 Credit market funds advanced by private financial
institutions
21
Commercial banking
22
Savings institutions
23
Insurance and pension funds
24
Other finance
315.7
128.5
72.3
89.5
25.5
313.9
123.1
56.5
85.9
48.5
281.5
100.6
54.5
94.3
32.1
323.4
102.3
27.8
97.4
96.0
285.6
107.2
31.3
108.8
38.3
376.7
136.1
136.8
98.8
5.0
323.2
112.7
18.4
101.4
90.8
274.4
99.9
25.2
111.4
37.9
296.7
114.5
37.4
106.3
38.6
323.2
121.6
128.9
89.5
-16.8
430.1
150.6
144.6
108.1
26.8
521.3
193.2
159.1
98.5
70.5
25 Sources of funds
26 Private domestic deposits and RPs
27
Credit market borrowing
315.7
142.7
37.0
313.9
137.4
34.5
281.5
169.6
18.1
323.4
211.9
36.7
285.6
174.7
4.1
376.7
203.5
22.9
323.2
217.9
33.0
274.4
147.6
24.2
296.7
201.9
-16.0
323.2
192.7
7.8
430.1
214.2
38.0
521.3
283.0
51.9
28
29
30
31
32
136.1
6.5
6.8
74.9
47.9
142.0
27.6
.4
72.8
41.2
93.9
-21.7
-2.6
83.9
34.2
74.8
-8.7
-1.1
90.4
-5.9
106.7
-26.7
6.1
104.6
22.8
150.4
22.1
-5.3
99.2
34.4
72.3
-9.8
-10.2
101.0
-8.7
102.6
-28.3
-2.0
111.4
21.5
110.8
-25.1
14.1
97.8
24.1
122.8
-14.2
10.1
90.0
36.8
177.9
58.5
-20.8
108.4
31.9
186.4
17.1
1.4
105.5
62.4
Private domestic nonfinancial investors
33 Direct lending in credit markets
34
U.S. government securities
35
State and local obligations
36 Corporate and foreign bonds
37
Open market paper
38
Other
59.6
33.5
3.6
-6.3
8.3
20.5
99.6
52.5
9.9
-1.4
8.6
30.0
56.1
24.6
7.0
-5.7
-3.1
33.3
70.6
29.3
10.5
-8.1
2.7
36.3
94.2
37.4
34.4
-5.2
-.1
27.8
142,1
88.7
42.5
2.0
3.9
5.0
62.8
24.5
12.5
-10.7
8.2
28.4
77.3
35.3
30.1
-17.7
3.5
26.2
111.0
39.5
38.7
7.3
-3.7
29.3
135.3
95.9
52.7
-1.7
-8.1
-3.4
148.9
81.4
32.3
5.7
15.9
13.5
182.7
134.4
21.8
7.2
-.3
19.7
39 Deposits and currency
40
Currency
41
Checkable deposits
Small time and savings accounts
42
43
Money market fund shares
44
Large time deposits
45
Security RPs
46
Deposits in foreign countries
153.9
9.3
16.2
65.9
6.9
46.3
7.5
2.0
146.8
8.0
18.3
59.3
34.4
18.8
6.6
1.5
181.1
10.3
5.2
82.9
29.2
45.8
6.5
1.1
221.9
9.5
18.0
47.0
107.5
36.9
2.5
.5
181.9
9.7
15.7
138.2
24.7
-7.7
3.8
-2.5
222.6
14.3
21.7
219.1
-44.1
-7.5
14.3
4.8
229.3
11.2
13.3
71.8
110.8
24.6
-2.6
.2
152.1
6.7
1.9
83.2
39.4
21.9
1.1
-2.2
211.7
12.7
29.5
193.1
10.0
-37.3
6.6
-2.9
214.5
14.8
48.0
278.6
-84.0
-61.0
11.0
7.0
230.7
13.8
-4.7
159.7
-4.2
45.9
17.5
2.7
294.5
17.7
37.8
127.9
30.2
81.8
5.3
-6.2
47 Total of credit market instruments, deposits and
currency
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
213.6
246.5
237.2
292.5
276.1
364.7
292.1
229.4
322.7
349.8
379.6
477.3
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
25.3
93.3
44.6
18.5
82.8
23.0
26.1
88.1
1.5
24.0
90.5
7.6
26.0
76.0
-8.6
21.5
76.0
49.2
23.0
91.6
-3.5
27.4
83.8
-7.9
24.9
70.0
-9.3
23.7
71.7
12.6
19.5
79.5
85.9
17.5
79.9
44.1
MEMO: Corporate equities not included above
51 Total net issues
52
Mutual fund shares
53
Other equities
54 Acquisitions by financial institutions
55 Other net purchases
1.9
-.1
1.9
4.7
-2.8
-3.8
.1
-3.9
12.9
-16.7
22.2
5.2
17.1
24.9
-2.7
-4.1
6.3
-10.4
20.1
-24.2
35.3
18.4
16.9
39.2
-3.9
67.8
32.8
34.9
57.5
10.2
-17.4
5.7
-23.0
22.6
-40.0
23.3
12.5
10.9
11.0
12.3
47.2
24.3
22.9
67.3
-20.1
83.5
36.8
46.8
75.9
7.6
52.0
28.9
23.1
39.2
12.8
-37.5
44.8
-82.3
4.2
-41.7
48
49
50
NOTES BY LINE NUMBER.
1.
2.
6.
11.
13.
18.
26.
27.
29.
30.
31.
Line 1 of table 1.58.
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.
Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33. Also
sum of lines 28 and 47 less lines 40 and 46.
Includes farm and commercial mortgages.
Line 39 less lines 40 and 46.
Excludes equity issues and investment company shares. Includes line 19.
Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affiliates.
Demand deposits at commercial banks.
Excludes net investment of these reserves in corporate equities.
32. Mainly retained earnings and net miscellaneous liabilities.
33. Line 12 less line 20 plus line 27.
34-38. Lines 14-18 less amounts acquired by private finance. Line 38 includes
mortgages.
40. Mainly an offset to line 9.
47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46.
48. Line 2/line 1.
49. Line 20/line 13.
50. Sum of lines 10 and 29.
51. 53. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding may be obtained from Flow of Funds Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.
Selected Measures
2.10
NONFINANCIAL BUSINESS ACTIVITY
A45
Selected Measures
1967 = 100; m o n t h l y and quarterly data are seasonally a d j u s t e d . E x c e p t i o n s noted.
1984
Measure
1981
1982
1983
Mar.
May
Apr.
July
June
Aug.'
Sept.'
Oct.'
Nov.
1 Industrial production
151.0
138.6
147.6
160.8
162.1
162.8
164.4
165.9
166.0
165.0
164.3
165.0
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
150.6
149.5
147.9
151.5
154.4
151.6
141.8
141.5
142.6
139.8
143.3
133.7
149.2
147.1
151.7
140.8
156.6
145.2
161.1
158.6
160.2
156.4
170.2
160.4
162.5
160.2
161.4
158.5
171.0
161.5
163.3
161.1
161.7
160.3
171.6
162.0
165.3
163.1
163.0
163.3
173.5
162.9
167.4
165.2
163.8
167.0
175.8
163.5
167.2
165.1
162.5
168.7
175.1
164.0
166.4
164.5
161.6
168.5
173.5
162.7
166.5
164.5
161.7
168.4
173.8
161.0
167.1
165.5
163.3
168.5
173.4
161.8
150.4
137.6
148.2
162.1
163.4
164.2
165.7
167.3
167.6
166.6
166.4
167.0
79.4
80.7
71.1
70.1
75.2
75.2
81.0
82.2
81.5
82.5
81.7
82.7
82.2
82.9
82.9
83.1
82.8
83.3
82.2
82.4
82.1
81.9
n.a.
n.a.
2
3
4
6
7
Industry groupings
8 Manufacturing
Capacity utilization (percent)1
9 Manufacturing
10 Industrial materials industries
11 Construction contracts (1977 = I00)2
111.0
111.0
138.0
144.0
145.0
165.0
148.0
152.0
151.0
144.0
146.0
n.a.
12
13
14
15
16
17
18
19
20
21
Nonagricultural employment, total3
Goods-producing, total
Manufacturing, total
Manufacturing, production-worker . . .
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable personal income4
Retail sales5
138.5
109.4
103.7
98.0
154.5'
386.5
349.7
287.5
372.6
330.6
136.1
102.2
96.6
89.4
154.7
410.3
367.4
285.5
398.0
326.0
137.0
100.4
95.1
88.7
157.1
435.6
388.6
294.7
427.1
373.0
141.4
105.5
100.1
93.6
161.1
466.8
413.3
318.8
459.9
396.9
142.0
106.2
100.4
94.0
161.6
471.2
418.1
322.0
464.2
410.8
142.5
106.6
100.6
94.1
162.2
472.8
419.2
321.9
465.3
413.6
143.1
107.1
100.9
94.3
162.8
477.2
422.6
323.1
469.1
417.7
143.4
107.5
101.3
94.6
163.1
480.4
424.4'
324.4
472.5'
410.5
143.6
107.7
101.4
94.8
163.4
483.5
425.5
326.2
475.5
407.3
144.1
107.3
100.9
94.0
164.2
487.0
428.4
325.7
479.1
412.2
144.6
107.6
101.2
94.3
164.9
488.7
428.9
326.3
480.5
411.6
145.1
107.8
101.3
94.4
165.5
492.0
432.2
328.7
483.2
n.a.
7?
23
Prices6
Consumer
Producer finished goods
272.4
269.8
289.1
280.7
298.4
285.2
307.3
291.4
308.8
291.2
309.7
291.1
310.7
290.9'
311.7
292.3'
313.0
291.8
314.5
289.8
315.3
291.6
315.3
292.3
1. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, Department of Commerce, and other sources.
2. Index of dollar value of total construction contracts, including residential,
nonresidential and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
3. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
4. Based on data in Survey of Current Business (U.S. Department of Commerce).
2.11
5. Based on Bureau of Census data published in Survey of Current Business.
6. 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.
LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
T h o u s a n d s of p e r s o n s ; m o n t h l y data are seasonally a d j u s t e d . E x c e p t i o n s n o t e d .
1984
Category
1981
1982
1983
Apr.
May
June
July
Aug.
Sept.'
Oct.'
Nov.
HOUSEHOLD SURVEY DATA
1 Noninstitutional population1
172,272
174,450
176,414
178,185
178,337
178,501
178,669
178,821
179,005
179,181
179,353
2 Labor force (including Armed Forces)1
3 Civilian labor force
110,812
108.670
112,383
110,204
113,749
111,550
115,461
113,245
116,017
113,803
116,094
113,877
116,167
113,938
115,732
113,494
115,941
113,699
116,242
114,017
116,244
114,026
97,030
3,368
96,125
3,401
97,450
3,383
101,009
3,393
101,899
3,389
102,344
3,403
102,050
3,345
101,744
3,224
101,923
3,315
102,472
3,114
102,519
3,353
8,273
7.6
61,460
10,678
9.7
62,067
10,717
9.6
62,665
8,843
7.8
62,724
8,514
7.5
62,320
8,130
7.1
62,407
8,543
7.5
62,502
8,526
7.5
63,089
8,460
7.4
63,064
8,431
7.4
62,939
8,154
7.2
63,109
91,156
89,566
90,138
93,449
93,786
94,135
94,350
94,523
94,807
95,150
95,453
20,170
1,139'
4,188'
5,165'
20,547'
5,298'
18.619116.031'
18,781
1,128
3,905'
5,082
20.457
5,341
19,036
15,837
18,497
957
3,940
4,958
20,804
5,467
19,665
15,851
19,530
984
4,246
5,129
21,568
5,640
20,449
15,903
19.570
995
4,286
5,144
21,658
5,662
20,549
15.922
19,629
1,002
4,343
5.163
21,747
5,676
20,681
15,894
19,696
1,007
4,356
5,175
21,811
5,676
20,701
15,928
19.725
1,017
4,356
5,202
21,839
5,679
20,748
15,957
19,616
1,020
4,374
5,213
21,930
5,684
20,861
16,109
19,681
1,013
4,384
5,225
22,092
5,708
20,964
16,083
19,704
1,013
4,414
5,250
22,224
5,725
21,053
16,070
Nonagricultural industries2
Agriculture
Unemployment
6
Number
7
Rate (percent of civilian labor force) . . .
8 Not in labor force
4
5
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment3
10
11
12
13
14
15
16
17
Manufacturing
Mining
Contract construction
Transportation and public utilities
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 1983
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A46
2.12
Domestic Nonfinancial Statistics • February 1985
OUTPUT, CAPACITY, AND CAPACITY UTILIZATION
Seasonally adjusted
1983
1984
1984
1983
1983
1984
series
Q4
Ql
Q2
Qy
Output (1967 = 100)
Q4
Ql
Q2
Q3
Capacity (percent of 1967 output)
Q4
Ql
Q2
Q3'
Utilization rate (percent)
1
Total industry
155.5
159.8
163.1
165.6
197.3
198.4
199.7
201.1
78.8
80.5
81.7
82.4
2
3
Mining
Utilities
121.0
178.4
124.2
179.2
125.1
183.1
128.9
181.1
165.5
212.4
165.7
213.8
165.9
215.3
166.1
216.8
73.1
84.0
75.0
83.8
75.4
85.0
83.4
83.5
4
Manufacturing
156.5
161.0
164.4
167.2
198.4
199.5
201.0
202.5
78.9
80.7
81.8
82.5
5
6
Primary processing . . .
Advanced processing
156.4
156.1
160.5
161.7
162.5
165.2
162.2
169.8
195.8
199.7
196.5
201.1
197.2
203.0
198.0
204.9
79.9
78.2
81.7
80.3
82.4
81.4
81.9
82.8
7
Materials
154.3
158.8
162.1
163.4
194.0
194.7
195.9
197.2
79.6
81.6
82.7
82.9
8
9
10
11
12
13
Durable goods
Metal materials . . . .
Nondurable g o o d s . . . .
Textile, paper, and chemical..
Paper
Chemical
150.3
93.8
183.5
193.2
167.4
235.0
157.6
97.3
183.7
193.2
165.8
236.7
162.0
100.3
186.6
195.9
168.5
240.4
164.4
96.5
186.0
195.3
171.1
239.1
196.5
139.6
220.6
232.7
167.7
300.1
197.1
139.1
221.8
234.2
168.5
302.3
198.3
138.5
223.4
236.2
169.5
305.2
199.5
137.9
225.2
238.2
170.5
308.0
76.5
67.2
83.2
83.0
99.8
78.3
79.9
70.0
82.8
82.5
98.4
78.3
81.7
72.4
83.5
82.9
99.4
78.8
82.4
70.0
82.6
82.0
100.4
77.6
14
Energy materials
127.8
131.2
132.4
133.1
155.3
155.8
156.4
157.0
82.3
84.2
84.6
84.7
Previous cycle1
High
Low
Latest cycle 2
High
Low
1984
1983
Nov.
Mar.
Apr.
May
June
July
Aug/
Sept/
Oct/
Nov.
Capacity utilization rate (percent)
15
Total industry
88.4
71.1
87.3
69.6
78.7
80.9
81.3
81.5
82.1
82.7
82.5
81.9
81.4
81.5
16
17
Mining
Utilities
91.8
94.9
86.0
82.0
88.5
86.7
69.6
79.0
73.2
83.0
74.7
84.0
74.3
85.0
75.4
84.7
76.6
85.4
78.3
84.1
77.3
83.3
77.3
83.2
74.2
83.0
74.8
83.0
18
Manufacturing
87.9
69.0
87.5
68.8
78.8
81.0
81.5
81.7
82.2
82.8
82.8
82.1
81.7
81.9
19
20
Primary processing .. .
Advanced processing .
93.7
85.5
68.2
69.4
91.4
85.9
66.2
70.0
80.0
78.0
82.2
80.6
82.2
81.0
82.4
81.2
82.6
81.9
82.3
83.0
82.1
83.1
81.5
82.4
81.5
81.8
81.4
81.9
21
Materials
92.6
69.3
88.9
66.6
79.6
82.2
82.5
82.7
82.9
83.1
83.2
82.3
81.3
81.5
22
23
Durable goods
Metal materials
91.4
97.8
63.5
68.0
88.4
95.4
59.8
46.2
76.5
66.8
80.7
71.5
81.5
73.0
81.5
72.2
82.0
72.1
82.5
70.8
82.9
70.8
81.9
68.2
80.9
66.5
81.2
68.4
Nondurable goods . . . .
Textile, paper, and
chemical
26
Paper
Chemical
27
24
25
28
Energy materials
94.4
67.4
91.7
70.7
83.8
83.6
83.2
83.9
83.3
83.0
82.9
81.9
81.7
81.7
95.1
99.4
95.5
65.4
72.4
64.2
92.3
97.9
91.3
68.6
86.3
64.0
83.7
101.3
79.0
83.1
96.8
79.5
82.7
98.5
78.9
83.3
99.8
79.0
82.6
99.8
78.4
82.5
101.5
77.9
82.4
99.7
78.1
81.0
99.8
76.8
81.1
98.5
77.2
81.1
98.1
77.3
94.5
84.4
88.9
78.5
81.8
84.1
84.5
84.3
85.0
85.3
84.7
84.2
81.6
82.0
1. Monthly high 1973; monthly low 1975.
2. Monthly highs 1978 through 1980; monthly lows 1982.
NOTE. These data also appear in the Board's G.3 (402) release. For address, see
inside front cover.
Selected Measures
2.13
INDUSTRIAL PRODUCTION
A47
Indexes and Gross Value
M o n t h l y data are seasonally a d j u s t e d
1967
Grouping
portion
1983
avg.
1984
1983
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept.
Oct.P
Nov. f
Index (1967 - 100)
MAJOR MARKET
100.00
147.6
1S5.3
156.2
158.5
160.0
160.8
162.1
162.8
164.4
165.9
166.0
165.0
164.3
165.0
60.71
47.82
27.68
20.14
12.89
39.29
149.2
147.1
151.7
140.8
156.6
145.2
155.8
153.2
156.1
149.1
165.5
154.5
157.4
155.2
157.7
151.8
165.4
154.5
159.7
157.5
159.5
154.9
167.8
156.6
160.4
158.0
159.4
156.1
169.0
159.4
161.1
158.6
160.2
156.4
170.2
160.4
162.5
160.2
161.4
158.5
171.0
161.5
163.3
161.1
161.7
160.3
171.6
162.0
165.3
163.1
163.0
163.3
173.5
162.9
167.4
165.2
163.8
167.0
175.8
163.5
167.2
165.1
162.5
168.7
175.1
164.0
166.4
164.5
161.6
168.5
173.5
162.7
166.5
164.5
161.7
168.4
173.8
161.0
167.1
165.5
163.3
168.5
173.4
161.8
7.89
2.83
2.03
1.90
.80
5.06
1.40
1.33
1.07
2.59
147.5
158.2
134.0
117.4
219.6
141.4
116.4
120.1
178.1
139.9
155.9
171.5
149.2
129.4
228.2
147.2
127.0
131.3
182.7
143.4
158.6
178.4
157.8
137.4
230.7
147.5
126.3
130.2
184.0
143.9
163.4
184.5
163.3
140.7
238.4
151.5
136.4
140.0
183.1
146.7
162.5
182.1
162.2
140.4
232.6
151.5
135.1
138.6
178.7
149.1
163.1
184.1
164.1
142.4
234.7
151.3
134.4
138.0
180.2
148.5
162.2
180.9
158.4
134.5
238.0
151.7
136.1
138.8
181.0
148.0
161.4
179.8
155.9
132.9
240.6
151.1
134.0
136.7
179.6
148.6
163.6
184.3
158.7
136.2
249.3
152.0
134.9
138.0
179.4
150.0
163.7
185.0
161.1
138.7
245.8
151.8
133.4
136.9
179.5
150.3
162.6
181.8
159.2
134.3
239.1
151.9
132.3
135.9
180.8
150.6
159.6
172.8
145.6
121.1
241.7
152.3
136.4
140.2
179.3
149.7
158.1
171.1
144.8
123.6
238.0
150.9
130.8
134.0
179.7
149.8
162.1
183.7
161.7
138.9
239.5
150.0
126.9
19.79 153.4
4 29
15.50 163.7
8.33 153.5
7.17 175.4
2.63 231.0
1 92 132 7
2.62 150.9
1.45 173.4
156.1
157.3
157.9
158.2
159.1
161.1
161.8
162.7
163.9
162.4
162.4
163.1
163.7
165.4
154.5
178.1
232.4
136 6
154.1
175.8
166.0
155.4
178.3
229.9
137.2
156.5
185.2
166.5
156.5
178.2
231.6
138.8
153.4
180.0
166.9
156.8
178.7
231.9
140.3
153.3
172.8
168.0
157.6
180.1
231.3
141.8
156.8
177.7
170.2
160.4
181.6
233.4
144.0
157.1
177.4
171.6
161.0
183.9
235.9
145.6
159.8
181.1
173.2
161.9
186.3
241.5
147.9
159.0
182.4
174.5
162.9
188.0
247.1
151.5
155.3
178.6
172.7
161.8
185.4
244.3
148.7
153.3
175.0
173.2
162.3
185.8
247.3
146.5
153.0
174.1
174.3
174.8
187.6
250.1
146.0
155.3
187.9
12.63
6.77
1.44
3.85
1.47
153.3
120.4
159.3
107.1
117.1
164.1
128.6
175.8
114.3
119.4
167.3
130.8
185.3
115.1
118.4
170.7
133.7
185.1
119.7
120.0
171.9
134.6
182.0
120.9
123.8
172.1
134.8
175.2
124.2
122.7
173.5
135.9
173.6
126.2
124.1
176.5
138.5
182.9
127.4
124.1
181.1
140.4
185.8
128.6
126.7
185.5
143.1
190.0
130.1
131.0
187.6
143.3
191.6
129.7
131.2
186.4
143.5
191.1
129.8
133.0
185.0
144.0
194.8
129.4
132.3
184.4
144.6
199.5
128.4
133.3
191.3
273.2
95.2
69.5
205.1
292.5
103.2
73.5
209.6
298.9
106.0
73.5
213.3
303.2
110.1
73.6
215.1
305.9
110.1
75.7
215.3
306.9
109.2
75.0
217.0
309.6
108.9
78.0
220.5
315.5
109.7
77.1
228.1
326.3
115.1
76.1
234.5
333.4
120.4
81.8
238.9
339.2
124.5
80.3
235.9
336.5
121.4
76.4
232.3
332.3
117.7
76.0
230.4
329.0
117.8
Farm
5.86
3.26
1.93
.67
36 Defense and space
7.51
119.9
124.0
125.7
128.3
129.5
130.1
133.2
133.1
133.5
135.9
136.8
138.5
140.5
141.7
6.42
6.47
1.14
142.5
170.7
184.3
151.6
179.4
187.6
151.5
179.3
188.0
155.5
180.1
192.1
156.6
181.3
191.6
159.1
181.3
187.0
159.6
182.3
190.0
159.5
183.5
190.8
160.9
186.1
195.3
161.9
189.5
194.9
160.9
189.1
193.3
159.2
187.6
194.5
158.5
188.9
193.4
158.1
20.35
4.58
5.44
150.3
125.0
192.5
139.3
97.1
151.3
127.9
193.4
139.5
96.9
154.6
131.6
198.2
141.8
97.7
158.6
133.1
204.0
146.0
103.0
159.5
133.0
206.7
146.3
103.0
161.3
133.2
210.9
147.7
105.7
161.6
132.6
210.6
148.6
104.5
163.0
134.7
214.0
148.7
104.1
164.2
135.1
218.8
148.3
103.4
165.3
136.6
220.1
149.2
102.0
163.8
136.3
218.9
147.0
98.4
162.3
136.6
217.0
144.8
95.5
163.1
139.1
216.0
146.0
<i.57
138.6
113.6
176.4
129.9
90.2
10.47
174.5
184.8
180.3
181.2
184.1
185.9
185.7
187.4
186.7
186.5
186.7
184.9
184.9
185.5
194.7
121.9
169.8
237.0
176.6
130.6
189.6
121.3
166.0
229.3
173.0
129.5
190.5
119.9
167.0
231.3
173.5
130.5
193.9
119.9
166.8
237.6
173.0
135.2
195.3
120.6
163.5
241.1
176.0
137.7
195.0
118.9
166.7
240.0
175.7
138.6
196.8
121.9
169.2
241.1
176.6
140.5
195.8
119.6
169.5
240.2
176.7
140.5
195.9
118.8
172.8
239.3
176.6
138.8
196.3
194.2
116.2
168.6
239.1
174.9
137.3
194.9
170.0
240.6
175.3
139.6
193.6
115.7
170.5
237.4
175.8
140.7
133.7
122.7
133.0
121.8
146.8
132.5
121.3
146.1
128.6
113.6
146.7
129.2
147.1
139.7
144.0
167.3
133.7
139.6
143.0
165.4
133.0
139.1
142.6
165.5
132.5
138.1
140.3
166.8
128.6
137.8
140.7
1 Total index
1
3
Final products
Consumer goods
Equipment
6 Intermediate products
7 Materials
4
S
Consumer goods
8 Durable consumer goods
9 Automotive products
10
Autos and utility vehicles
11
1?
N
14
15
16
17
Auto parts and allied goods
Appliances, A/C, and TV
Appliances and TV
Carpeting and furniture
Miscellaneous home goods
18 Nondurable consumer goods
19
70 Consumer staples
71
Consumer foods and tobacco
Nonfood staples
77
Consumer chemical products . . . .
"M
7.5
Consumer energy products
26
Equipment
77
78
79
30
31
3?
33
34
35
Building and mining
Manufacturing
Power
Commercial transit, farm
Intermediate products
37 Construction supplies
38
Materials
40 Durable goods materials
41 Durable consumer parts
4? Equipment parts
43 Durable materials n.e.c
44
45 Nondurable goods materials
46 Textile, paper, and chemical
10.34
47
48
49
50
5|
7.62
] .85
1.62
4.15
1.70
1.14
182.6
116.2
158.2
221.7
167.9
130.5
57 Energy materials
53
Primary energy
54 Converted fuel materials
8.48
4.65
3.82
124.8
114.7
137.0
127.1
115.5
141.1
130.0
131.3
119.3
145.8
131.0
121.3
142.8
131.3
119.6
145.4
132.1
119.5
147.3
131.9
119.8
146.5
133.2
117.6
145.1
Supplementary groups
55 Home goods and clothing
56
S7
58 Materials
9.35
12.23
3.76
8.48
129.9
135.9
161.0
124.8
135.9
138.5
164.3
137.6
141.1
166.0
130.0
140.1
141.6
165.1
131.3
140.3
140.1
141.9
166.0
131.3
141.0
142.8
167.1
132.1
139.8
143.3
169.2
131.9
139.6
144.5
170.0
133.2
127.1
141.4
164.9
131.0
120.1
149.0
120.1
149.9
129.2
A48
2.13
Domestic Nonfinancial Statistics • February 1985
INDUSTRIAL PRODUCTION Indexes and Gross Value—Continued
1967
Grouping
SIC
code
proportion
1984
1983
1983
avg.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept.
Oct.P
Nov/
Index (1967 = 100)
MAJOR INDUSTRY
12.05
6.36
5.69
3.88
87.95
35.97
51.98
142.9
116.6
172.4
196.0
148.2
168.1
134.5
147.2
121.1
176.3
200.2
156.4
174.8
143.6
151.5
123.7
182.5
208.0
156.8
173.9
145.0
151.4
124.8
181.0
206.8
159.5
175.2
148.6
148.9
124.1
176.5
200.0
161.4
177.2
150.5
150.4
123.8
180.0
204.6
162.1
177.6
151.4
151.3
123.3
182.7
207.7
163.4
179.1
152.6
152.1
125.0
182.3
206.8
164.2
179.9
153.3
154.1
127.0
184.3
209.6
165.7
181.3
154.9
154.4
129.9
181.8
205.9
167.3
181.8
157.2
153.0
128.3
180.6
204.0
167.6
181.7
157.8
153.2
128.4
180.8
204.4
166.6
180.5
157.0
150.5
123.4
180.7
203.9
166.4
181.0
156.3
151.2
124.4
181.1
204.3
167.0
181.4
157.1
10
11.12
13
14
.51
.69
4.40
.75
80.9
136.3
116.6
122.8
84.6
144.8
119.8
132.2
82.3
145.2
123.4
133.9
89.4
151.5
123.1
134.8
97.4
163.2
119.6
133.0
100.0
164.0
118.2
135.8
98.5
151.4
118.8
140.4
98.0
153.9
120.4
144.0
96.8
161.5
121.6
147.9
96.4
176.5
122.8
151.9
83.4
171.7
122.5
153.5
84.3
173.7
122.0
154.8
82.4
127.8
122.5
152.9
128.5
123.4
20
21
22
23
26
8.75
.67
2.68
3.31
3.21
156.4
112.1
140.8
157.1
109.5
145.8
157.7
112.3
145.0
159.4
116.4
143.9
160.0
110.9
142.3
161.2
111.8
143.5
163.1
113.3
140.0
164.2
112.8
140.5
165.1
118.3
140.7
164.9
115.1
139.8
164.7
113.8
140.3
164.5
113.1
136.0
135.4
164.3
172.1
170.1
172.3
176.6
173.8
172.4
174.1
174.6
176.7
176.7
177.6
176.0
176.5
172.0
232.7
125.3
337.1
56.8
172.6
109.1
1
1
4
5
ft
7
Mining
9
10
11
Coal
Oil and gas extraction
Nondurable
manufactures
P
N
14
Tobacco products
16
Paper and products
27
28
29
30
31
4.72
7.74
1.79
2.24
.86
152.5
215.0
120.3
291.9
61.9
162.0
225.6
125.4
309.1
63.2
161.7
221.1
114.4
314.4
66.0
163.4
221.5
118.8
317.2
61.4
164.8
224.8
127.6
318.5
63.9
165.2
225.0
127.0
323.8
63.9
166.3
228.3
126.8
328.0
63.5
167.5
227.9
127.9
334.1
61.4
169.0
231.0
127.5
341.0
60.0
172.6
232.0
124.7
341.4
60.6
173.1
231.6
341.5
59.1
171.3
230.8
122.6
338.4
57.9
19.91
24
25
32
3.64
1.64
1.37
2.74
95.4
137.2
170.5
143.4
99.3
141.0
177.5
152.7
99.8
143.8
177.9
153.8
99.7
146.0
183.8
157.8
99.6
145.6
185.6
160.4
100.6
">3
">4
184.6
160.2
101.4
151.2
186.6
160.0
100.8
146.3
190.5
160.6
101.7
148.5
191.9
159.7
102.7
146.0
192.6
160.9
105.5
148.8
195.3
160.0
106.8
149.2
194.3
158.6
107.9
148.8
196.5
158.1
26 Primary metals
">7
78 Fabricated metal products
7 9 Nonelectrical machinery
30 Electrical machinery
33
331.2
34
35
36
6.57
4.21
5.93
9.15
8.05
85.4
71.5
120.2
150.6
185.5
92.2
79.2
128.5
161.8
200.1
90.4
74.1
129.2
164.3
201.5
93.2
80.7
131.7
169.5
206.2
98.4
86.0
132.8
170.9
209.9
97.5
84.4
134.9
171.9
212.0
99.3
84.0
135.5
174.9
214.6
98.2
83.5
136.5
178.8
214.5
97.9
83.5
138.7
182.0
216.0
94.5
76.5
140.6
186.9
221.5
94.4
77.7
140.0
189.1
221.5
93.2
75.4
139.6
187.9
223.0
92.0
74.7
140.0
185.5
220.8
221.1
37
371
9.27
4.50
117.8
137.1
127.3
152.9
130.8
158.9
134.9
166.3
135.2
164.4
135.8
165.8
134.5
161.9
135.0
163.0
137.2
165.3
140.6
169.0
141.0
169.6
137.6
162.4
137.6
161.7
142.9
173.3
372-9
38
39
4.77
2.11
1.51
99.6
158.7
146.2
103.2
163.0
148.9
104.3
164.6
149.3
105.3
167.8
151.1
107.7
168.6
152.0
107.5
169.7
152.3
108.8
171.0
152.1
108.6
171.8
151.5
110.8
174.5
150.8
113.8
176.7
152.4
113.9
177.4
149.2
114.2
178.0
147.6
114.9
177.7
147.6
114.2
178.5
147.6
17
18
19
Printing and publishing
Chemicals and products
Petroleum products
''O
21
Durable manufactures
22 Ordnance, private and government . . .
31 Transportation equipment
32
Motor vehicles and parts
33
Aerospace and miscellaneous
transportation equipment
34 Instruments
35 Miscellaneous manufactures
149.3
124.3
125.4
92.6
139.2
183.8
Gross value (billions of 1972 dollars, annual rates)
MAJOR MARKET
36
507.4
612.6
638.4
645.4
655.1
656.9
661.8
661.1
665.9
671.5
682.4
678.2
674.0
675.7
679.9
37
38
39
40
390.9
277.5
113.4
116.6
472.6
328.7
144.0
140.0
490.8
338.3
152.5
147.6
497.8
341.9
155.9
147.6
505.3
345.3
160.0
149.8
505.0
345.3
159.7
151.9
509.6
347.7
161.9
152.2
509.0
347.8
161.2
152.2
514.0
349.5
164.4
151.9
518.1
350.9
167.2
153.4
525.9
353.2
172.8
156.5
522.3
347.4
174.9
155.9
520.0
345.8
174.2
153.9
521.4
347.9
173.5
154.3
525.4
352.3
173.1
154.5
NOTE. These data also appear in the Board's G.12.3 (414) release. For address,
see inside front cover.
Selected Measures
2.14
A49
HOUSING AND CONSTRUCTION
M o n t h l y figures are at seasonally a d j u s t e d annual rates e x c e p t as noted.
1984
Item
1981
1982
1983
Feb.
Jan.
Mar.
Apr.
May
June
July
Aug/
Sept/
Oct.
Private residential real estate activity (thousands of units)
NEW UNITS
Permits authorized
2
1-family
3 2-or-more-family
986
564
421
1,000
546
454
1,605
902
703
1,799
989
810
1,902
1,083
819
1,727
974
753
1,758
957
801
1,745
913
832
1,768
916
852
1,565
823
742
1,506
803
703
1,440
841
599
1,418
794
624
Started
1-family
2-or-more-family
1,084
705
379
1,062
663
400
1,703
1,067
635
1,980
1,301
679
2,262
1,463
799
1,662
1,071
591
2,015
1,196
819
1,794
1,131
663
1,877
1,084
793
1,754
990
764
1,554
932
622
1,683
1,016
667
1,538
974
564
682
382
301
720
400
320
1,003
524
479
1,032
552
480
1,033
557
All
1,065
571
494
1,091
582
509
1,094
589
506
1,101
589
512
1,105
586
519
1,091
573
517
1,091
568
523
1,086
575
511
1,266
818
447
1,005
631
374
1,390
924
466
1,606
1,014
592
1,565
1,034
531
1,590
1,031
559
1,654
974
680
1,756
1,081
675
1,739
1,051
688
1,718
1,076
642
1,689
1,039
650
1,649
1,054
595
1,579
934
645
13 Mobile homes shipped
241
240
295
314
293
287
287
295
301
301
303
277
301
Merchant builder activity in 1-family units
14 Number sold
15 Number for sale, end of period1
436
278
413
255
622
304
681
302
712
320
682
320
649
328
616
333
635
339
615r
341'
563
345
666
345
680
348
Price (thousands of dollars)2
Median
16
Units sold
Average
17 Units sold
68.8
69.3
75.5
76.2
79.2
78.4
79.6
81.4
80.5
80.7'
81.3
80.1
79.7
83.1
83.8
89.9
92.2
94.4
97.7
96.2
101.9
98.8
97.1'
96.9
99.4
93.7
2,418
1,991
2,719
2,890
2,910
3,020
3,090
3,060
2,960
2,770
2,700
2,670
2,670
66.1
78.0
67.7
80.4
69.8
82.5
71.3
84.8
71.8
84.9
72.2
85.1
72.5
86.1
73.1
86.2
73.8
87.7
74.5
88.2
73.7
87.8
72.1
85.6
72.3
86.3
1
4
.5
6
7 Under construction, end of period1
8
1-family
9 2-or-more-family
10 Completed
1-family
11
12 2-or-more-family
EXISTING UNITS (1-family)
18 Number sold
2
Price of units sold (thousands of dollars)
19 Median
20 Average
Value of new construction3 (millions of dollars)
CONSTRUCTION
21 Total put in place
239,112 230,068 262,167 280,897 300,355 309,744 308,596 316,398 315,279 310,978
310,984 310,530 315,766
22 Private
23 Residential
24 Nonresidential, total
Buildings
25
Industrial
26
Commercial
27
Other
Public utilities and other
28
185,761 179,090 211,369 229,972 248,104 254,958 254,057 261,182 257,789 254,778
86,564 74,808 111,727 121,931 137,403 141,087 136,577 138,401 136,418 135,288
99,197 104,282 99,642 108,041 110,701 113,871 117,480 122,781 121,371 119,490
254,492 253,180 258,011
133,776 131,254 134,020
120,716 121,926 123,991
29 Public
30 Military
31
Highway
32 Conservation and development
Other
33
17,031
34,243
9,543
38,380
17,346
37,281
10,507
39,148
12,863
35,787
11,660
39,332
12,872
41,057
12,742
41,370
13,969
42,076
12,999
41,657
14,363
45,280
13,190
41,038
13,633
47,353
13,271
43,223
15,170
49,719
13,821
44,071
14,065
48,947
13,327
45,032
13,585
48,259
12,861
44,785
14,533
49,485
12,019
44,679
14,789
50,793
12,145
44,199
14,462
52,543
12,069
44,917
53,346
1,966
13,599
5,300
32,481
50,977
2,205
13,428
5,029
30,315
50,798
2,544
14,225
4,822
29,207
50,925
2,608
14,240
4,319
29,758
52,251
2,474
14,993
4,608
30,176
54,786
2,872
16,205
4,531
31,178
54,539
2,827
16,781
4,518
30,413
55,216
2,649
16,949
4,356
31,262
57,490
2,703
16,824
4,492
33,471
56,200
2,429
17,161
4,537
32,073
56,493
2,649
17,050
4,551
32,243
57,350
2,698
17,366
4,872
32,414
57,754
2,721
17,354
4,846
32,833
1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly
comparable with data in prior periods because of changes by the Bureau of the
Census in its estimating techniques. For a description of these changes see
Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
NOTE. Census Bureau estimates for all series except (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.
A50
2.15
Domestic Nonfinancial Statistics • February 1985
CONSUMER AND PRODUCER
PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Item
Change from 3 months earlier
(at annual rate)
1983
1983
1984
Nov.
Nov.
Change from 1 month earlier
1984
Index
level
Nov.
1984
(1967
1984
= J00)1
Dec.
Mar.
June
July
Sept.
Aug.
Sept.
Oct.
Nov.
CONSUMER PRICES2
1
All items
3.2
4.0
4.0
5.0
3.3
4.5
.3
.5
.4
.4
.2
315.3
2
3
4
5
6
Food
Energy items
All items less food and energy
Commodities
Services
2.1
-.6
4.3
5.2
3.5
4.0
.5
4.7
3.3
5.5
4.3
-1.7
4.9
4.6
5.3
9.0
-1.4
5.1
3.4
5.9
-.7
.8
4.7
3.7
5.3
3.4
1.7
5.4
4.0
6.2
.3
-.3
.4
.2
.6
.6
.1
.5
.4
.5
-.1
.6
.4
.5
.4
.4
.3
.3
.2
.5
.2
.2
.3
.0
.4
304.1
421.8
306.9
257.0
364.0
.7
1.7
-9.0
I
1.1
5.8
-10.4
1.5
1.8
5.7
16.9
-8.1
4.5
3.8
-.4
-8.5
7.5
1.3
2.3
.4
3.3
-16.7
2.5
2.9
1.3'
-1.8R
.2
2.2
1.9
4.0
-3.9
2.2
2.2
.0R
.(Y
-1.9R
.4
.4'
-.2
-.4
-.8
.0
.0
-.2
.1
1.5
-.5
-.6
.5
.7
.6
.5
.2
292.3
272.3
747.4
247.9
296.3
1.4
2.7
1.9
2.5
2.5
4.1
2.9
3.8
3.3
2.0
-1.0
-.1
-.1
.3
.3
326.1
304.9
6.6
-5.8
14.6
-2.1
12.1
-2.3
2.4
12.5
-1.6
-9.7
-21.7
4.0
31.6
-4.9
1.0
-14.0
4.9
-.9
-1.5
253.4
779.9
254.8
PRODUCER PRICES
7
8
9
10
11
Finished goods
Consumer foods
Consumer energy
Other consumer goods
Capital equipment
3
12
13
Intermediate materials
Excluding energy
14
15
16
Crude materials
Foods
Energy
Other
i
_.6i
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers and reflect a
rental equivalence measure of homeownership after 1982.
.4
,2r
.K
A'
.4
-1.8
.(X
-1.6'
.7
-3.1
.0
.0
.0
-.8
1.2
->
2
-1.1
-.3
-1.5
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.
Selected Measures
2.16
A51
GROSS NATIONAL PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1984
1983
Account
1981
1982
1983
Ql
Q4
Q3
Q2
Q3R
GROSS NATIONAL PRODUCT
1
2
3
4
5
7
8
9
10
11
12
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Gross private domestic investment
Fixed investment
Nonresidential
Structures
Producers' durable equipment
Residential structures
Nonfarm
2,957.8
3,069.3
3,304.8
3,346.6
3,431.7
3,553.3
3,644.7
3,694.6
1,849.1
235.4
730.7
883.0
1,984.9
245.1
757.5
982.2
2,155.9
279.8
801.7
1,074.4
2,181.4
284.1
811.7
1,085.7
2,230.2
299.8
823.0
1,107.5
2,276.5
310.9
841.3
1,124.4
2,332.7
320.7
858.3
1,153.7
2,361.4
317.2
861.4
1,182.8
484.2
458.1
353.9
135.3
218.6
104.3
99.8
414.9
441.0
349.6
142.1
207.5
91.4
86.6
471.6
485.1
352.9
129.7
223.2
132.2
127.6
491.9
496.2
353.9
126.2
227.8
142.3
137.7
540.0
527.3
383.9
136.6
247.3
143.4
138.7
623.8
550.0
398.8
142.2
256.7
151.2
146.4
627.0
576.4
420.8
150.0
270.7
155.6
150.5
662.8
591.0
435.7
151.4
284.2
155.3
150.1
13
14
Change in business inventories
Nonfarm
26.0
18.2
-26.1
-24.0
-13.5
-3.1
-4.3
11.6
12.7
14.1
73.8
60.6
50.6
47.0
71.8
63.7
15
16
17
Net exports of goods and services
Exports
Imports
28.0
369.9
341.9
19.0
348.4
329.4
-8.3
336.2
344.4
-16.4
342.0
358.4
-29.8
346.1
375.9
-51.5
358.9
410.4
-58.7
362.4
421.1
-90.6
368.6
459.3
18
19
20
Government purchases of goods and services
Federal
State and local
596.5
228.9
367.6
650.5
258.9
391.5
685.5
269.7
415.8
689.8
269.2
420.6
691.4
266.3
425.1
704.4
267.6
436.8
743.7
296.4
447.4
761.0
302.0
458.9
?L
7?
23
74
75
26
By major type of product
Final sales, total
Goods
Durable
Nondurable
Services
Structures
2,931.7
1,294.8
530.4
764.3
1,373.0
289.9
3,095.4
1,276.7
499.9
776.9
1,510.8
281.7
3,318.3
1,355.7
555.3
800.4
1,639.3
309.8
3,350.9
1,373.1
576.9
796.2
1,654.5
319.0
3,419.0
1.423.9
607.4
816.5
1,681.3
326.5
3,479.5
1,498.0
632.3
865.7
1,713.7
341.6
3,594.1
1,544.8
647.9
896.9
1,742.6
357.2
3,622.8
1,549.1
654.7
894.4
1,783.3
362.1
27
78
29
Change in business inventories
Durable goods
Nondurable goods
26.0
7.3
18.8
-26.1
-18.0
-8.1
-13.5
-2.1
-11.3
-4.3
12.5
-16.8
12.7
14.5
-1.7
73.8
34.9
38.9
50.6
18.2
32.4
71.8
41.7
30.1
30
MEMO: Total GNP in 1972 dollars
1,512.2
1,480.0
1,534.7
1,550.2
1,572.7
1,610.9
1,638.8
1,645.2
2,363.8
2,446.8
2,646.7
2,684.4
2,766.5
2,873.5
2,944.8
2,984.9
1,765.4
1,493.2
284.6
1,208.6
272.2
132.3
140.0
1,864.2
1,568.7
306.6
1,262.2
295.5
140.0
155.5
1,984.9
1,658.8
328.2
1,331.1
326.2
153.1
173.1
2,000.7
1,670.8
330.6
1,340.3
329.9
153.9
175.9
2,055.4
1,715.4
335.0
1,380.4
340.0
157.9
182.1
2,113.4
1,755.9
342.9
1,413.0
357.4
169.4
188.1
2,159.2
1,793.3
347.5
1,445.8
365.9
172.4
193.5
2,191.9
1,819.1
352.0
1,467.1
372.8
174.7
198.1
125.1
93.6
31.5
111.1
89.2
21.8
121.7
107.9
13.8
123.3
112.1
11.2
131.9
114.6
17.3
154.9
122.5
32.5
149.8
126.3
23.4
153.7
126.4
27.3
NATIONAL INCOME
31
37
33
34
35
36
37
38
Compensation of employees
Wages and salaries
Government and government enterprises
Other
Supplement to wages and salaries
Employer contributions for social insurance
Other labor income
39
40
41
Proprietors' income1
Business and professional1
Farm1
42
Rental income of persons2
42.3
51.5
58.3
56.2
60.4
61.0
62.0
63.0
43
44
45
46
Corporate profits1
Profits before tax3
Inventory valuation adjustment
Capital consumption adjustment
189.9
221.2
-23.6
-7.6
159.1
165.5
-9.5
3.1
225.2
203.2
-11.2
33.2
245.0
227.4
-19.3
36.9
260.0
225.5
-9.2
43.6
277.4
243.3
-13.5
47.6
291.1
246.0
-7.3
52.3
282.8
224.8
-.2
58.3
47
Net interest
241.0
260.9
256.6
259.2
258.9
266.8
282.8
293.5
1. With inventory valuation and capital consumption adjustments.
2. With capita! consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).
A52
2.17
Domestic Nonfinancial Statistics • February 1985
PERSONAL INCOME AND SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1984
1983
Account
1981
1983
1982
Q3
Q4
Ql
Q2
Q3'
PERSONAL INCOME AND SAVING
1 Total personal income
2,429.5
2,584.6
2,744.2
2,763.3
2,836.5
2,920.5
2,984.6
3,047.3
2 Wage and salary disbursements
3 Commodity-producing industries
Manufacturing
4
5 Distributive industries
6
Service industries
7 Government and government enterprises
1,493.1
509.3
385.5
361.6
337.7
284.6
1,568.7
509.3
382.9
378.6
374.3
306.6
1,659.2
519.3
395.2
398.6
413.1
328.2
1,671.3
523.5
399.1
399.7
417.0
331.0
1,715.4
539.0
411.9
413.2
428.2
335.0
1,755.7
555.9
424.6
419.2
437.9
342.8
1,793.1
567.0
432.2
429.5
449.3
347.3
1,819.5
573.3
436.4
436.4
457.3
352.4
140.0
125.1
93.6
31.5
42.3
64.3
331.8
337.3
182.0
155.5
111.1
89.2
21.8
51.5
66.5
366.6
376.1
204.5
173.1
121.7
107.9
13.8
58.3
70.3
376.3
405.0
221.6
175.9
123.3
112.1
11.2
56.2
70.7
382.3
403.9
222.4
182.1
131.9
114.6
17.3
60.4
72.8
388.2
408.8
227.7
188.1
154.9
122.5
32.5
61.0
75.0
403.9
411.3
232.1
193.5
149.8
126.3
23.4
62.0
77.2
425.6
415.2
235.2
198.1
153.7
126.4
27.3
63.0
78.5
449.3
418.6
238.2
8
9
10
11
12
13
14
15
16
17
Other labor income
Proprietors' income1
Business and professional1
Farm1
Rental income of persons2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits...
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
104.5
111.4
119.6
120.4
123.2
129.6
131.8
133.4
2,429.5
2,584.6
2,744.2
2,763.3
2,836.5
2,920.5
2,984.6
3,047.3
387.7
404.1
404.2
395.8
407.9
418.3
430.3
440.9
20 EQUALS: Disposable personal income
2,041.7
2,180.5
2,340.1
2,367.4
2,428.6
2,502.2
2,554.3
2,606.4
21
LESS: Personal outlays
1,904.3
2,044.5
2,222.0
2,248.4
2,300.0
2,349.6
2,409.5
2,442.3
22 EQUALS: Personal saving
137.4
136.0
118.1
119.0
128.7
152.5
144.8
164.1
6,572.8
4,131.4
4,561.0
6.7
6,369.7
4,145.9
4,555.0
6.2
6,543.4
4,302.8
4,670.0
5.0
6,601.9
4,325.2
4,694.0
5.0
6,681.4
4,386.0
4,776.0
5.3
6,829.4
4,426.5
4,865.0
6.1
6,933.2
4,502.3
4,930.0
5.7
6,943.2
4,498.4
4,965.0
6.3
27 Gross saving
484.3
408.8
437.2
455.2
485.7
543.9
551.0
556.4
28
29
30
31
509.9
137.4
42.3
-23.6
524.0
136.0
29.2
-9.5
571.7
118.1
76.5
-11.2
588.6
119.0
86.9
-19.3
615.0
128.7
100.0
-9.2
651.3
152.5
107.0
-13.5
660.2
144.8
115.3
-7.3
689.4
164.1
118.4
202.6
127.6
.0
221.8
137.1
231.2
145.9
236.4
150.0
.0
151.8
244.1
156.0
248.1
158.8
.0
233.4
149.4
.0
239.9
.0
.0
.0
.0
-26.7
-64.3
37.6
-115.3
-148.2
32.9
-134.5
-178.6
44.1
-133.5
-180.9
47.4
-129.3
-180.5
51.2
-107.4
-161.3
53.9
-109.2
-163.7
54.5
-133.0
-180.6
47.6
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'
Corporate inventory valuation adjustment
Capital consumption
allowances
33 Noncorporate
34 Wage accruals less disbursements
35 Government surplus, or deficit ( - ) , national income and
36
37
Federal
State and local
-.2
1.1
.0
.0
.0
.0
.0
.0
.0
39 Gross investment
490.0
408.3
437.7
450.3
480.9
546.1
542.0
543.4
40 Gross private domestic
41 Net foreign
484.2
5.8
414.9
-6.6
471.6
-33.9
491.9
-41.5
540.0
-59.1
623.8
-77.7
627.0
-85.0
662.8
-119.4
5.6
-.5
.5
-4.8
-4.8
2.2
-9.0
-13.0
38 Capital grants received by the United States, net
42 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
SOURCE. Survey of Current Business (Department of Commerce).
Summary Statistics
3.10
U.S. INTERNATIONAL TRANSACTIONS Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted.1
1984
1983
Item credits or debits
1 Balance on current account
1983
1982
1981
9
10
Merchandise trade balance2
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net3
Other service transactions, net
Remittances, pensions, and other transfers
U.S. government grants (excluding military)
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )
Q3
Q4
Ql
Q3P
Q2
6,294
-9,199
-41,563
-11,846
-14,498
-17,213
-15,964
-19,673
-18,616
-24,704
-24,381
-32,900
-35,471
-28,001
237,085
-265,086
-1,116
34,053
8,191
-36,469
211,198
-247,667
195
27,802
7,331
-61,055
200,257
-261,312
515
23,508
4,121
-17,501
50,437
-67,938
-55
7,172
681
-19,407
51,829
-71,236
-273
5,119
434
-25,855
53,935
-79,790
-370
7,748
951
-25,845
54,563
-80,408
-404
3,459
243
-33,134
55,497
-88,631
-241
3,678
-385
-2,382
-4,451
-2,635
-5,423
-2,590
-6,060
-665
-1,478
-688
-2,398
-717
-1,430
-726
-1,431
-711
-2,107
*>
3
4
5
6
7
8
A53
-5,107
-6,143
-5,013
-1,204
-1,429
-2,037
-1,235
-1,474
12 Change in U.S. official reserve assets (increase, - )
13 Gold
14 Special drawing rights (SDRs)
15
Reserve position in International Monetary Fund
16 Foreign currencies
-5,175
0
-1,823
-2,491
-861
-4,965
0
-1,371
-2,552
-1,041
-1,196
0
-66
-4,434
3,304
529
0
-209
-88
826
-953
0
545
-1,996
498
-65 7
0
-226
-200
-231
-565
0
-288
-321
44
-799
0
-271
-331
-197
17 Change in U.S. private assets abroad (increase, - ) 3
18 Bank-reported claims
19 Nonbank-reported claims
20
U.S. purchase of foreign securities, net
U.S. direct investments abroad, net3
21
-100,694
-84,175
-1,181
-5,714
-9,624
-107,790
-111,070
6,626
-8,102
4,756
-43,281
-25,391
-5,333
-7,676
-4,881
-8,548
-2,871
-233
-1,571
-3,873
-12,461
-8,239
-1,671
-983
-1,568
705
1,955
1,659
637
-3,546
-17,237
-20,612
2,120
-820
2,075
18,297
18,359
n.a.
-1,167
1,105
22. Change in foreign official assets in the United States
(increase, +)
23
U.S. Treasury securities
24
Other U.S. government obligations
25
Other U.S. government liabilities4
7,6 Other U.S. liabilities reported by U.S. banks
Other foreign official assets5
27
5,003
5,019
1,289
-300
-3,670
2,665
3,318
5,728
-694
382
-1,747
-351
5,339
6,989
-487
199
433
-1,795
-2,703
-611
-363
137
-1,403
-463
6,555
2,603
417
161
3,498
-124
-2,784
-288
-8
242
-2,131
-599
-345
-310
147
448
349
-979
-1,022
-577
85
-244
201
-487
28 Change in foreign private assets in the United States
(increase, +) 3
U.S. bank-reported liabilities
U.S. nonbank-reported liabilities
Foreign private purchases of U.S. Treasury securities, net
Foreign purchases of other U.S. securities, net
Foreign direct investments in the United States, net3
76,310
42,128
917
2,946
7,171
23,148
91,863
65,922
-2,383
7,062
6,396
14,865
76,383
49,059
-1,318
8,731
8,612
11,299
22,281
14,792
1,311
995
1,861
3,322
27,249
22,325
-228
1,673
1,134
2,345
18,444
8,775
4,404
1,358
1,516
2,391
40,750
20,789
4,055
6,477
587
8,842
7,256
-3,879
n.a.
5,153
1,684
4,298
1,093
22,275
0
32,916
0
9,331
0
1,491
-2,518
0
-1,748
2,657
0
6,002
-154
0
3,336
-104
0
10,642
-2,386
22,275
32,916
9,331
4,009
-4,405
6,156
3,440
13,028
-5,175
-4,965
-1,196
529
-953
-657
-565
-799
5,303
2,936
5,140
-2,840
6,394
-3,026
-793
-778
13,581
7,291
-8,639
-2,051
-1,640
-2,447
-2,170
2,274
675
593
205
49
84
41
44
45
7.9
30
31
32
33
M Allocation of SDRs
35 Discrepancy
36
37
Statistical discrepancy in recorded data before seasonal
adjustment
MEMO
Changes in official assets
U.S. official reserve assets (increase, - )
Foreign official assets in the United States
(increase, +)
40 Change in Organization of Petroleum Exporting Countries
official assets in the United States (part of line 22
above)
41 Transfers under military grant programs (excluded from
lines 4, 6, and 10 above)
38
39
1. Seasonal factors are no longer calculated for lines 6, 10, 12-16, 18-20, 22-34,
and 38-41.
2. Data are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing; military
exports are excluded from merchandise data and are included in line 6.
3. Includes reinvested earnings.
4. Primarily associated with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
NOTE. Data are from Bureau of Economic Analysis, Survey of Current Business
(Department of Commerce).
A54
International Statistics • February 1985
3.11
U.S. FOREIGN TRADE
Millions of dollars; m o n t h l y data are seasonally a d j u s t e d .
1984
Item
1981
1983
1982
Apr.
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
233.677
212,193
200.486
261,305
243,952
-27,628
-31,759
June
July
Aug.
Sept.
Oct.
17,521
17,950
17,633
19,442
18,036
258,048
28.368
25,569
25,356
31.883
26,567
29,430
26,313
-57,562
-10,846
-7,619
-7,723
-12,440
-8,531
-11,253
-7,926
NOTE. The data through 1981 in this table are reported by the Bureau of Census
data of a free-alongside-ship (f.a.s.) value basis—that is, value at the port of
export. Beginning in 1981, foreign trade of the U.S. Virgin Islands is included in
the Census basis trade data; this adjustment has been made for all data shown in
the table. Beginning with 1982 data, the value of imports are on a customs
valuation basis.
The Census basis data differ from merchandise trade data shown in table 3.10,
U.S. International Transactions Summary, for reasons of coverage and timing. On
the export side, the largest adjustments are: (1) the addition of exports to Canada
3.12
May
18.177
18,387
not covered in Census statistics, and (2) the exclusion of military sales (which are
combined with other military transactions and reported separately in the "service
account" in table 3.10, line 6). On the import side, additions are made for gold,
ship purchases, imports of electricity from Canada, and other transactions;
military payments are excluded and shown separately as indicated above.
SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade"
(Department of Commerce. Bureau of the Census).
U.S. RESERVE ASSETS
Millions of dollars, end of period
1984
Type
1981
1982
1983
May
July
June
Aug.
Sept.
Oct.
Nov.
1 Total
30,075
33,958
33,747
34,713
34,547
34,392
34,760
34,306
34,570
34,727
2 Gold stock, including Exchange Stabilization Fund1
11.151
11,148
11.121
11.104
11.100
11,099
11,098
11,097
11,096
11,096
3 Special drawing rights2-5
4.095
5,250
5.025
5,513
5.459
5,453
5.652
5,554
5.539
5,693
5,055
7,348
11.312
11,666
11,659
11,735
11,820
11.619
11,618
11,675
9.774
10,212
6.289
6.430
6.329
6.105
6,190
6,036
6,317
6,263
4
Reserve position in International Monetary Fund2
5 Foreign currencies4
1. Gold held under earmark at Federal Reserve Banks for foreign and international accounts is not included in the gold stock of the United States; see table
3.13. Gold stock is valued at $42.22 per fine troy ounce.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of member countries.
From July 1974 through December 1980, 16 currencies were used; from January
1981, 5 currencies have been used. The U.S. SDR holdings and reserve position in
the IMF also are valued on this basis beginning July 1974.
3.13
3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. I. 1970; $717 million on Jan. 1. 1971; $710 million on Jan. 1,
1972: $1,139 million on Jan. I. 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1. 1981; plus transactions in SDRs.
4. Valued at current market exchange rates.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1984
Assets
1982
1981
1983
May
1 Deposits
Assets held in custody
2 U.S. Treasury securities1
3 Earmarked gold2
July
Aug.
Sept.
Nov.
Oct.
505
328
190
295
238
215
242
206
270
392
104,680
14.804
112,544
14,716
117.670
14.414
114,562
14.268
117.143
14,266
115.760
14,270
117.130
14,258
115,678
14,256
115,542
14,260
117,433
14,265
1. Marketable U.S. Treasury bills, notes, and bonds: and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies.
2. Earmarked gold is valued at $42.22 per fine troy ounce.
June
NOTE. Excludes deposits and U.S. Treasury securities held for international
and regional organizations. Earmarked gold is gold held for foreign and international accounts and is not included in the gold stock of the United States.
Summary Statistics
3.14
FOREIGN BRANCHES OF U.S. BANKS
A55
Balance Sheet Data
Millions of dollars, e n d of period
Asset account
Apr.
May
July'
Aug.'
Sept.
All foreign countries
1 Total, all currencies
2 Claims on United States
3 Parent bank
4 Other banks in United States'
5 Nonbanks'
6 Claims on foreigners
7 Other branches of parent bank
8 Banks
9 Public borrowers
10 Nonbank foreigners
|
11 Other assets
12 Total payable in U.S. dollars
13 Claims on United States
14 Parent bank
15 Other banks in United States'
16 Nonbanks1
17 Claims on foreigners
18 Other branches of parent bank
19 Banks
20 Public borrowers
21 Nonbank foreigners
j
22 Other assets
462,847
469,712
476,539
474,882
4it5,930
477,667
465,688
462,115
454,076
448,284
63,743
43,267
20,476
378,954
87,821
150,763
28,197
112,173
91,805
61,666
30,139
358,493
91,168
133,752
24,131
109,442
115,065
81,113
33,952
342,609
92,718
117,593
24,508
107,790
121,081
85,150
35,931
333,701
92,842
107,540
24,775
108,544
126,124
89,031
37,093
339,191
95,271
112,614
24,345
106,963
125,265
89,773
14,536
20,956
332,343
95,861
105,561
23,381
107,540
118,324
82,273
14,529
21,522
327,156
91,379
107,203
23,440
105,134
116,896
82,051
13,560
21,285
324,359
93,566
103,072
22,641
105,080
114,442
80,155
13,264
21,023
318,014
92,691
100,933
22,498
101,892
109,380
75,620
12,740
21,020
318,636
90,858
101,999
22,974
102,805
20,150
19,414
18,865
20,100
20,615
20,059
20,208
20,860
21,620
20,268
350,735
361,982
370,958
359,385
372,643
367,803
357,403
352,560
346,928
340,305
62,142
42,721
19,421
276,937
69,398
122,110
22,877
62,552
90,085
61,010
29,075
259,871
73,537
106,447
18,413
61,474
112,959
80,018
32,941
247,327
75,207
93,257
17,881
60,982
118,602
83,729
34,873
230,386
70,100
83,194
17,957
59,135
123,749
87,851
35,898
238,022
75,679
86,555
17,613
58,175
123,070
88,661
14,294
20,115
234,128
77,408
81,174
17,007
58,539
116,017
81,073
14,195
20,749
230,700
73,648
82,178
17,149
57,725
114,572
80,905
13,211
20,456
227,021
76,023
77,120
16,781
57,097
111,959
78,967
12,871
20,121
223,579
75,554
75,926
16,887
55,212
106,754
74,250
12,448
20,056
222,937
73,509
76,663
17,246
55,519
11,656
12,026
10,672
10,397
10,872
10,605
10,686
10,967
11,390
10,614
United Kingdom
23 Total, all currencies
157,229
161,067
158,732
161,109
159,250
159,038
155,643
154,250
147,696
147,543
24 Claims on United States
25 Parent bank
26 Other banks in United States'
27 Nonbanks'
28 Claims on foreigners
29 Other branches of parent bank
30 Banks
31 Public borrowers
32 Nonbank foreigners
11,823
7,885
3,938
138,888
41,367
56,315
7,490
33,716
27,354
23,017
4,337
127,734
37,000
50,767
6,240
33,727
34,433
29,111
5,322
119,280
36,565
43,352
5,898
33,465
38,428
32,855
5,573
117,713
38,571
39,779
6,072
33,291
36,172
30,266
5,906
117,970
36,806
42,244
5,992
32,928
36,338
30,621
1,252
4,465
117,492
38,620
40,069
5,876
32,927
33,697
27,863
1,273
4,561
116,740
37,728
40,980
5,786
32,246
31,691
26,054
1,087
4,550
117,255
39,313
39,906
5,510
32,526
29,333
23,772
1,327
4,234
113,299
37,499
39,133
5,330
31,337
28,933
23,264
1,214
4,455
113,524
37,638
38,696
5,441
31,749
\
33 Other assets
34 Total payable in U.S. dollars
35 Claims on United States
36 Parent bank
37 Other banks in United States'
38 Nonbanks'
39 Claims on foreigners
40 Other branches of parent bank
41 Banks
42 Public borrowers
43
Nonbank foreigners
)
44 Other assets
6,518
5,979
5,019
4,968
5,108
5,208
5,206
5,304
5,064
5,086
115,188
123,740
126,012
123,174
122,406
123,933
120,488
118,337
114,358
113,292
11,246
7,721
3,525
99,850
35,439
40,703
5,595
18,113
26,761
22,756
4,005
92,228
31,648
36,717
4,329
19,534
33,756
28,756
5,000
88,917
31,838
32,188
4,194
20,697
37,598
32,453
5,145
82,769
29,247
29,135
4,408
19,979
35,234
29,876
5,358
84,087
30,280
30,196
4,296
19,315
35,387
30,181
1,144
4,062
85,447
32,867
28,778
4,284
19,518
32,587
27,239
1,149
4,199
84,729
31,762
29,444
4,288
19,235
30,641
25,509
950
4,182
84,553
33,623
27,961
3,983
18,986
28,282
23,323
1,195
3,764
83,082
32,704
27,986
3,879
18,513
27,898
22,806
1,113
3,979
82,456
32,461
27,093
4,063
18,839
4,092
4,751
3,339
2,807
3,085
3,099
3,172
3,143
2,994
2,938
Bahamas and Caymans
45 Total, all currencies
46 Claims on United States
47 Parent bank
48 Other banks in United States'
49 Nonbanks'
50 Claims on foreigners
51 Other branches of parent bank
52 Banks
53 Public borrowers
54 Nonbank foreigners
55 Other assets
56 Total payable in U.S. dollars . . . .
|
149,108
145,156
151,532
145,281
156,656
153,836
147,730
147,127
144,591
138,798
46,546
31,643
14,903
98,057
12,951
55,151
10,010
19,945
59,403
34,653
24,750
81,450
18,720
42,699
6,413
13,618
74,832
47,807
27,025
72,788
17,340
36,767
6,084
12,597
75,690
47,566
28,124
65,666
14,811
32,723
6,005
12,127
83,620
54,122
29,498
68,960
17,105
33,583
5,922
12,350
81,935
53,950
12,378
15,607
68,025
17,925
31,659
5,993
12,448
78,064
49,673
12,358
16,033
65,620
15,566
32,008
6,000
12,046
78,690
51,192
11,540
15,958
64,263
16,153
30,445
5,883
11,782
77,026
50,091
11,072
15,863
63,533
15,684
30,030
6,119
11,700
71,763
45,493
10,716
15,554
62,997
15,154
30,209
6,040
11,594
4,505
4,303
3,912
3,925
4,076
3,876
4,046
4,174
4,032
4,038
143,743
139,605
145,091
138,881
150,191
147,678
141,768
140,947
138,706
132,834
1. Data for assets vis-a-vis other banks in the United States and vis-a-vis
nonbanks are combined for dates prior to June 1984.
A56
3.14
International Statistics • February 1985
Continued
1984
LYOZ
Apr.
May
r
June'
July'
Aug/
Sept.
Oct.P
All foreign countries
57 Total, all currencies
462,847
469,712
476,539
474,882
485,930
477,667
465,688
462,115
454,076
448,284
58 Negotiable CDs 2
59 To United States
60
Parent bank
61
Other banks in United States
62
Nonbanks
n.a.
137,767
56,344
19,197
62,226
n.a.
179,015
75,621
33,405
69,989
n.a.
187,602
80,537
29,107
77,958
n.a.
184,451
75,594
27,151
81,706
n.a.
191,086
80,353
27,851
82,882
43,437
162,371
80,710
22,818
58,843
41,311
155,047
77,795
22,051
55,201
41,649
152,448
76,966
19,693
55,789
39,857
147,596
75,039
20,091
52,466
38,512
140,006
74,756
18,913
46,337
63 To foreigners
64
Other branches of parent bank
65
Banks
66
Official institutions
6V
Nonbank foreigners
68 Other liabilities
305,630
86,396
124,906
25,997
68,331
19,450
270,853
90,191
96,860
19,614
64,188
19,844
269,602
89,055
92,882
18,893
68,772
19,335
270,242
90,937
90,166
17,882
71,257
20,189
275,017
92,430
94,046
19,608
68,933
19,827
252,277
92,382
83,094
19,713
57,088
19,582
248,392
89,052
79,867
21,234
58,239
20,938
246,178
90,743
78,458
20,228
56,749
21,840
244,703
90,426
77,092
21.551
55,634
21,920
247,184
89,462
82,001
19,559
56,162
22,582
69 Total payable in U.S. dollars
364,447
379,270
387,740
375,443
390,725
385,140
374,590
370,090
364,267
356,236
70 Negotiable CDs 2
71 To United States
72
Parent bank
73
Other banks in United States
74
Nonbanks
n.a.
134,700
54,492
18,883
61,325
n.a.
175,528
73,295
33,040
69,193
n.a.
183,837
78,328
28,573
76,936
n.a.
180,149
73,168
26,564
80,417
n.a.
186,807
77,894
27,198
81,715
40,868
157,826
78,017
22,228
57,581
39,004
150,789
75,287
21,418
54,084
39,603
147,915
74,380
19,019
54,516
37,620
143,096
72,267
19,428
51,401
36,127
135,756
72,245
18,259
45,252
75 To foreigners
76
Other branches of parent bank
77
Banks
78
Official institutions
79
Nonbank foreigners
80 Other liabilities
217,602
69,299
79,594
20,288
48,421
12,145
192,510
72,921
57,463
15,055
47,071
11,232
194,056
72,002
57,015
13,852
51,187
9,847
185.165
69,096
50,874
13,347
51,848
10,129
193,940
73,556
54,937
14,835
50,612
9,978
176,540
74,444
46,998
14,300
40,798
9,906
174,419
71,434
44,877
16,118
41,990
10,378
171,794
73,445
42,343
15,477
40,529
10,778
172,932
73,412
42,723
16,850
39,947
10,619
173,426
72,139
46,217
14,915
40,155
10,927
United Kingdom
81 Total, all currencies
157,229
161,067
158,732
161,109
159,250
159,038
155,643
154,250
147,6%
147,543
n.a.
38,022
5,444
7,502
25,076
n.a.
53,954
13,091
12,205
28,658
n.a.
55,799
14,021
11,328
30,450
n.a.
56,526
16,311
10,542
29.673
n.a.
55,353
17,820
9,487
28,046
39,840
31,949
18,532
4,701
8,716
37,998
29,682
16,730
4,277
8,675
38,265
29,667
18,127
3,548
7,992
36,600
27,255
16,130
3,422
7,703
34,948
26,558
16,598
3,388
6,572
87 To foreigners
88
Other branches of parent bank
89
Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities
112,255
16,545
51,336
16,517
27,857
6,952
99,567
18,361
44,020
11,504
25,682
7,546
95,847
19,038
41,624
10,151
25,034
7,086
97,064
21,939
40,751
9.403
24,971
7.519
%,530
20,791
41,597
10,377
23,765
7,367
79,802
21,298
32,917
10,104
15,483
7,447
80,261
21,459
31,435
11,301
16,066
7,702
78,469
22,252
30,735
10,480
15,002
7,849
75,926
21,536
28,997
10,625
14,768
7,915
77,985
21,023
32,436
9,650
14,876
8,052
93 Total payable in U.S. dollars
120,277
82 Negotiable CDs 2
83 To United States
84
Parent bank
85
Other banks in United States
86
Nonbanks
130,261
131,167
128,369
128,446
128,922
126,294
124,260
119,337
117,957
94 Negotiable CDs
95 To United States
%
Parent bank
97
Other banks in United States
98
Nonbanks
n.a.
37,332
5,350
7,249
24,733
n.a.
53,029
12,814
12,026
28,189
n.a.
54,691
13,839
11,044
29,808
n.a.
55.201
16,127
10,292
28,782
n.a.
54,094
17,624
9,200
27,270
38,463
30,602
18,244
4,486
7,872
36,757
28,349
16,390
4,018
7,941
37,219
28,027
17,701
3,244
7,082
35,398
25,738
15,679
3,102
6,957
33,736
25,178
16.209
3,144
5,825
99 To foreigners
100
Other branches of parent bank
101
Banks
102
Official institutions
103
Nonbank foreigners
104 Other liabilities
79,034
12,048
32,298
13,612
21,076
3,911
73,477
14,300
28,810
9,668
20,699
3,755
73,279
15,403
29,320
8,279
20,277
3,197
69,739
14,801
27,286
7,650
20,002
3,429
70,955
15,907
27,308
8,760
18,980
3,397
56,274
17,362
19,541
8,121
11,205
3,583
57,495
17,472
18,197
9,610
12,216
3,693
55,337
18,384
16,984
8,920
11,049
3,677
54,615
18,175
16,016
9,375
11,049
3,586
55,482
17,600
18,309
8,306
11,267
3,561
2
Bahamas and Caymans
149,108
145,156
151,532
145,281
156,656
153,836
147,730
147,127
144,591
138,798
106 Negotiable CDs 2
107 To United States
108
Parent bank
109
Other banks in United States
110
Nonbanks
105 Total, all currencies
n.a.
85,759
39,451
10,474
35,834
n.a.
104,425
47,081
18,466
38,878
n.a.
110,831
50,256
15,711
44,864
n.a.
107,432
43,523
15.208
48,701
n.a.
114,761
46,313
16,930
51,518
1,081
110,839
45,734
16,633
48,472
979
106,155
44,827
16,184
45,144
898
103,730
42,181
14,742
46,807
779
100,704
42,077
15,459
43,168
870
95,092
42,850
14,143
38,099
111 To foreigners
112
Other branches of parent bank
113
Banks
114
Official institutions
115
Nonbank foreigners
116 Other liabilities
60,012
20,641
23,202
3,498
12,671
3,337
38,274
15,7%
10,166
1,967
10,345
2,457
38,362
13,376
11,869
1,916
11,201
2,339
35,502
12.858
9,859
1,869
10,916
2,347
39,376
14,033
12,111
2,197
11,035
2,519
39,334
13,873
12,497
2,681
10,283
2,582
37,814
12,381
12,636
2,427
10,370
2,782
39,598
14,446
12,200
2,674
10,278
2,901
40,213
15,283
11,978
3,028
9,924
2,895
39,855
14,823
13,059
2,211
9,762
2,981
145,284
141,908
147,727
141,040
152,515
149,766
143,779
143,102
140,936
135,164
117 Total payable in U.S. dollars
2. Before June 1984, liabilities on negotiable CDs were included in liabilities to
the United States or liabilities to foreigners, according to the address of the initial
purchaser.
Summary Statistics
3.15
A57
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1984
Item
1 Total1
2
3
4
5
6
I
8
9
10
II
12
By type
Liabilities reported by banks in the United States2
U.S. Treasury bills and certificates3
U.S. Treasury bonds and notes
Marketable
Nonmarketable4
U.S. securities other than U.S. Treasury securities5
By area
Western Europe1
Canada
Latin America and Caribbean
Asia
Africa
Other countries6
1982
1983
May
June
July
Aug.
Sept.
Oct.P
172,718
177,951'
175,327
172,018
174,133
174,326
177,326
173,372
176,017
24,989
46,658
25,534'
54,341
23,836
53,171
23,204
51,035
23,737
53,977
25,653
51,974
26,381
54,022
23,954
54,627
26,725
55,780
67,733
8,750
24,588
68,514
7,250
22,305'
70.176
6,600
21,544
69,818
6,600
21,361
68,947
6,600
20,872
69,125
6,600
20,974
70,491
5,800
20,632
68,520
5,800
20,471
67,648
5,800
20,064
61,298
2,070
6,057
96,034
1,350
5,909
67,645
2,438
6,248
92,572'
958
8,090'
69,926
1,557
7,461
88,534
941
6,908
69,971
1,247
6,472
86,521
1,179
6,628
70,168
994
7,070
88,427
996
6,478
68,524
1,250
7,118
90,321
970
6,143
70,449
1,434
8,170
90,464
838
5,971
68,060
1,069
7,052
90,399
897
5,895
68,543
1,321
8,109
91,480
967
5,597
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.
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.
3.16
Apr.
LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1983
Item
1980
1981
Dec.
1 Banks' own liabilities
2 Banks' own claims
3 Deposits
4 Other claims
5 Claims of banks' domestic customers1
1. 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.
3,748
4,206
2,507
1,699
962
3,523
4,980
3,398
1,582
971
1984
1982
4,844
7,707
4,251
3,456
676
5,219
7,231
2,731
4,501
1,059
Mar.
5,672
9,034
4,024
5,010
361
June
6,402
9,623
4,280
5,344
227
Sept.?
5,901
9,048
3,738
5,310
281
NOTE. Data on claims exclude foreign currencies held by U.S. monetary
authorities,
A58
3.17
International Statistics • February 1985
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Millions of dollars, end of period
Reported by Banks in the United States
1984
Holder and type of liability
1981A
1982
1983
Apr.
May
June
July
Aug.'
Sept.
Oct.P
1 All foreigners
243,889
307,056
369,584
380,158
393,754
400,492
396,376
394,474
398,300
389,713
2 Banks' own liabilities
3
Demand deposits
4
Time deposits'
5
Other2
6
Own foreign offices 3
163,817
19,631
29,039
17,647
97,500
227,089
15,889
68,797
23,184
119,219
279,002'
17,485
90,597
25,815
145,105
286,954
17,176
96,876
24,084
148,817
301,352
17,196
103,390
23,722
157,044
303,779
17,621
105,347
23,100
157,711
300,731
16,384
109,392
25,546
149,409
294,632
16,229
107,541
23,630
147,232
299,434
17,214
111,320
22,579
148,321
290,227
16,482
109,598
24,178
139,970
80,072
55,315
79,967
55,628
90,582
68,669
93,205
69,893
92,402
68,511
96,713
72,191
95,646
71,244
99,842
74,148
98,866
73,160
99,486
73,829
18,788
5,970
20,636
3,702
17,529
4,385
18,703
4,608
18,780
5,112
19,518
5,003
19,411
4,990
20,567
5,127
20,833
4,873
20,271
5,386
2,721
4,922
5,957
6,356
5,316
5,055
5,344
5,748
6,279
4,846
638
262
58
318
1,909
106
1,664
139
4,632
297
3,584
750
3,528
194
2,468
866
2,229
255
1,640
335
2,920
182
2,209
529
2,612
142
2,213
257
1,960
325
1,446
189
3,305
209
2,526
570
2,098
144
1,593
361
2,083
541
3,013
1,621
1,325
463
2,827
1,759
3,087
2,057
2,135
887
2,732
1,709
3,788
2,722
2,975
1,834
2,748
1,455
1,542
0
1,392
0
862
0
1,068
0
1,030
0
1,248
0
1,023
0
1,067
0
1,140
0
1,292
0
20 Official institutions8
79,126
71,647
79,876
77,007
74,240
77,714
77,627
80,403
78,581
82,505
21 Banks' own liabilities
22
Demand deposits
23
Time deposits'
24
Other2
17,109
2,564
4,230
10,315
16,640
1,899
5,528
9,212
19.427
1.837
7,318
10,272
17,534
1,761
7,483
8,290
16,859
1,729
7,263
7,868
16,616
1,898
7,548
7,169
18,379
1,875
7,958
8,546
18,222
2,003
8,060
8,158
16,190
1,978
7,808
6,404
19,089
1,710
8,587
8,793
25 Banks' custody liabilities4
26
U.S. Treasury bills and certificates 5
27
Other negotiable and readily transferable
instruments6
28
Other
62,018
52,389
55,008
46,658
60,448
54,341
59,473
53,171
57,380
51,035
61,098
53,977
59,248
51,974
62,181
54,022
62,391
54,627
63,416
55,780
9,581
47
8,321
28
6,082
25
6,287
15
6,307
38
7,030
91
7,265
9
8,149
10
7,746
18
7,616
20
29 Banks9
136,008
185,881
226,810
234,524
249,204
251,783
247,716
241,604
245,863
234,307
30 Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
33
Time deposits'
34
Other2
35
Own foreign offices 3
124,312
26,812
11,614
8,720
6,477
97,500
169,449
50,230
8,675
28,386
13,169
119,219
205,270
60,165
8,773
37,412
13,979
145.105
212,051
63,234
8.797
40.211
14,225
148,817
226,054
69,010
8,879
45,287
14,845
157,044
227,195
69,484
9,074
45,699
14,711
157,711
222,401
72,993
8,203
48,719
16.070
149,409
216,133
68,900
7,884
46.853
14,164
147,232
220,971
72,650
8,459
49,256
14,935
148,321
209,648
69,679
8,388
46,772
14,518
139,970
36 Banks' custody liabilities4
37
U.S. Treasury bills and certificates
38
Other negotiable and readily transferable
instruments6
39
Other
11,696
1,685
16,432
5,809
21,540
10,178
22.473
10,795
23,150
11,182
24,588
12,771
25,315
13,022
25,471
12,766
24,892
12,234
24,659
12.362
4,400
5,611
7,857
2,766
7,485
3,877
7,586
4,092
7,523
4,445
7,446
4,371
7,867
4,426
8,172
4,534
8,421
4,236
7,802
4,494
40 Other foreigners
26,035
44,606
56,942
62,272
64,994
65,940
65,689
66,719
67,576
68,055
41 Banks'own liabilities
42
Demand deposits
43
Time deposits
44
Other2
21,759
5,191
16,030
537
39,092
5,209
33,219
664
49,672
6,577
42,283
813
53,840
6,423
46,714
703
56,209
6,333
49,201
675
57,048
6,466
49,891
691
57,338
6,163
50,502
672
58,318
6,017
51,182
1,120
58,968
6,567
51,730
671
59,391
6,240
52,646
506
4,276
699
5,514
1,540
7,269
3,686
8,431
4,168
8,785
4,238
8,892
4,556
8,351
4,540
8,401
4,639
8,609
4,465
8,664
4,232
3,265
312
3,065
908
3,100
483
3.763
501
3,919
628
3,795
541
3,255
556
3,180
582
3,525
619
3,560
872
10,747
14,307
10,407
10,128
10,630
10,986
10,930
11,415
10,512
10,694
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 deposits'
15
Other2
16 Banks' custody liabilities4
17
U.S. Treasury bills and certificates
18
Other negotiable and readily transferable
instruments6
19
Other
45 Banks' custody liabilities4
46
U.S. Treasury bills and certificates
47
Other negotiable and readily transferable
instruments6
48
Other
49 MEMO: Negotiable time certificates of
deposit in custody for foreigners
• Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
1. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
2. Includes borrowing under repurchase agreements.
3. U.S. banks: includes amounts due to own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due to head office or parent foreign bank, and
foreign branches, agencies or wholly owned subsidiaries of head office or parent
foreign bank.
4. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.
5. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks.
8. Foreign central banks and foreign central governments, and the Bank for
International Settlements.
9. Excludes central banks, which are included in "Official institutions."
Nonbank-Reported
3.17
Data
Continued
1984
Area and country
1981A
1982
1983
Apr.
May
June
July
Aug/
Sept.
Oct.P
1 Total
243,889
307,056
369,584
380,158
393,754
400,492
396,376
394,474
398,300
389,713
2 Foreign countries
241,168
302,134
363,627
373,803
388,438
395,437
391,033
388,726
392,020
384,867
117,756
519
2,517
509
748
8,171
5,351
537
5,626
3,362
1,567
388
1,405
1,390
29,066
296
48,172
499
7,006
50
576
138,045
585
2,709
466
531
9,441
3,599
520
8,462
4,290
1,673
373
1,603
1,799
32,219
467
60,683
562
7,403
65
596
147,775
883
3,585
307
485
10,735
5,205
528
7,813
5,043
1,847
414
1,707
1,673
32,769
335
67,841
448
5,584
61
510
151,532
867
4,680
378
405
12,119
3,990
594
8,315
5,030
1,536
401
1,663
1,962
32,704
444
69,006
511
6,389
53
484
156,041
770
5,138
291
1,248
11,670
3,663
596
8,155
5,735
2,084
425
1,774
1,486
35,137
315
69,885
556
6,459
41
612
152,529
720
4,775
429
947
12,031
3,961
600
6,960
5,615
1,624
440
1,825
1,833
33,311
340
69,767
525
6,349
31
447
150,742
758
4,789
408
489
11,539
3,758
566
8,370
5,116
2,026
539
1,971
2,095
32,876
354
67,976
435
6,101
47
532
147,024
693
4,278
341
638
11,547
3,036
567
8,266
5,334
1,817
434
1,984
2,008
33,005
320
65,306
514
6,156
41
738
146,360
744
4,093
337
427
11,601
3,331
610
8,976
4,420
1,895
540
1,905
1,945
32,505
557
65,489
579
5,881
50
477
3 Europe
4 Austria
5 Belgium-Luxembourg
6 Denmark
Finland
7
8
France
9 Germany
10 Greece
Italy
11
17 Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20
Yugoslavia
Other Western Europe1
21
U.S.S.R
77
2
23 Other Eastern Europe
91,275
596
4,117
333
296
8,486
7,645
463
7,267
2,823
1,457
354
916
1,545
18,716
518
28,286
375
6,541
49
493
24 Canada
10,250
12,232
16,026
16,707
17,455
17,572
19,221
18,170
17,534
16,766
75 Latin America and Caribbean
7,6 Argentina
77
Bahamas
Bermuda
28
79
Brazil
30
British West Indies
31
Chile
32 Colombia
33
Cuba
Ecuador
34
35 Guatemala
36 Jamaica
37
Mexico
Netherlands Antilles
38
39 Panama
40 Peru
Uruguay
41
Venezuela
47
Other Latin America and Caribbean
43
85,223
2,445
34,856
765
1,568
17,794
664
2,993
9
434
479
87
7,235
3,182
4,857
694
367
4,245
2,548
114,163
3,578
44,744
1,572
2,014
26,381
1,626
2,594
9
455
670
126
8,377
3,597
4,805
1,147
759
8,4)7
3,291
140,174
4,038
55,842
2,328
3,168
34,545
1,842
1,689
8
1,047
788
109
10,392
3,879
5,924
1,166
1,244
8,632
3,535
144,076
4,657
57,000
3,111
3,808
32,974
1,972
1,814
8
969
850
127
11,210
4,681
5,472
1,182
1,343
9,081
3,817
152,187
4,583
62,634
3,276
3,568
33,847
1,887
1,767
10
881
842
126
11,874
4,666
6,283
1,249
1,380
9,432
3,882
151,684
4,535
61,141
2,598
3,690
34,678
1,970
1,809
9
908
825
157
11,976
4,459
6,652
1,279
1,309
10,129
3,559
148,023
4,439
58,414
2,544
4,120
33,953
2,176
1,801
7
845
811
116
11,722
4,253
6,664
1,278
1,302
9,684
3,895
149,072
4,411
58,177
2,763
4,697
33,789
2,070
1,791
7
951
831
126
12,268
4,261
6,506
1,273
1,319
10,046
3,786
152,252
4,377
58,609
3,177
4,427
35,832
1,874
1,957
8
931
810
180
12,869
4,179
6,808
1,343
1,418
9,615
3,839
145,968
4,484
53,285
3,036
4,717
34,260
2,052
2,022
8
924
856
122
12,466
4,186
6,566
1,304
1,574
10,154
3,951
44
49,822
48,716
58,488
55,039
57,199
60,201
61,726
61,540
66,137
66,593
158
2,082
3,950
385
640
592
20,750
2,013
874
534
12,992
4,853
203
2,761
4,465
433
857
606
16,078
1,692
770
629
13,433
6,789
249
3,997
6,657
464
997
1,722
18,079
1,648
1,234
747
12,970
9,725
302
4,388
5,501
651
784
716
18,862
1,414
1,015
636
12,269
8,501
400
4,364
5,862
646
897
754
20,522
1,337
1,130
730
11,615
8,943
469
4,578
6,416
498
1,281
768
19,433
1,276
1,032
875
12,341
11,234
644
4,797
6,117
621
911
804
19,442
1,393
976
779
14,748
10,496
671
4,799
6,110
800
1,137
726
19,792
1,641
1,084
782
13,200
10,796
876
4,970
6,948
644
939
750
21,344
1,572
1,020
741
13,756
12,577
861
5,041
6,422
616
1,339
2,018
19,938
1,637
1,097
980
13,797
12,847
57 Africa
58 Egypt
59 Morocco
60
South Africa
61
Zaire
Oil-exporting countries4
62
63 Other Africa
3,180
360
32
420
26
1,395
946
3,124
432
81
292
23
1,280
1,016
2,827
671
84
449
87
620
917
3,182
649
127
264
119
1,046
978
3,140
698
132
329
124
895
962
3,331
893
133
420
136
816
932
3,145
858
128
409
99
706
946
3,052
743
119
350
101
775
964
3,018
629
136
318
148
821
966
3,337
763
115
459
141
998
861
64 Other countries
65
Australia
66 All other
1,419
1,223
196
6,143
5,904
239
8,067
7,857
210
7,023
6,803
220
6,925
6,685
240
6,609
6,316
293
6,389
6,095
294
6,150
5,749
401
6,055
5,687
368
5,843
5,464
379
67 Nonmonetary international and regional
organizations
68
International
69
Latin American regional
70 Other regional5
2,721
1,661
710
350
4,922
4,049
517
357
5,957
5,273
419
265
6,356
5,641
419
296
5,316
4,741
428
146
5,055
4,436
438
180
5,344
4,740
431
173
5,748
4,973
445
330
6,279
5,411
488
381
4,846
4,131
518
196
45
46
47
48
49
50
51
57
53
54
55
56
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle-East oil-exporting countries3
Other Asia
• Liabilities and claims of banks in the United States were increased, beginning
in December 1981, by the shift from foreign branches to international banking
facilities in the United States of liabilities to, and claims on, foreign residents.
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."
A59
A60
3.18
International Statistics • February 1985
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1984
1981A
1982
May
June
Aug.
Sept.
Oct.?
1 Total
251,589
355,705
391,326
388,775
399,796
408,073
405,225
396,024'
393,038
381,571
2 Foreign countries
251,533
355,636
391,163
388,702
399,693
407,959
405,016
395,826'
392,967
380,889
49,262
121
2,849
187
546
4,127
940
333
5,240
682
384
529
2,095
1,205
2,213
424
23,849
1,225
211
377
1,725
85,584
229
5,138
554
990
7,251
1,876
452
7,560
1,425
572
950
3,744
3,038
1,639
560
45,781
1,430
368
263
1,762
91,874
401
5,639
1,275
1,044
8,766
1,294
476
9,018
1,292
690
1,114
3,583
3,358
1,856
812
47,273
1,718
477
192
1,598
96,321
679
6,243
1,197
1,021
8,734
1,502
830
8,292
2,319
705
1,291
3,719
3,646
1,849
1,043
49,097
1,754
651
179
1,570
98,340
456
6,626
1,118
1,041
9,029
1,111
940
7,901
1,787
719
1,366
3,700
2,957
1,570
1,047
52,850
1,775
565
172
1,610
104,011
632
6,734
1,212
1,100
9,393
1,175
1,036
8,556
1,781
729
1,463
3,792
3,206
1,904
1,160
55,941
1,808
571
175
1,643
102,253
646
6,063
1,204
928
9,732
1,142
979
8,331
1,811
648
1,503
3,955
2,677
1,520
1,210
55,543
1,817
800
172
1,573
100,085'
581'
6,156'
1,103
872'
97,658
572
6,281
1,057
882
9,118
1,219
1,083
7,810
1,470
650
1,387
3,358
2,596
1,741
1,132
53,121
1,888
664
176
1,455
94,638
511
5,375
544
887
8,822
1,096
917
7,752
1,204
676
1,347
3,172
2,362
2,067
1,145
52,534
1,868
658
162
1,539
Area and country
1983
Apr.
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
17
Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
21
Other Western Europe1
22
U.S.S.R
23 Other Eastern Europe2
24 Canada
July
10,01c
1,257'
974'
7,832
1,440'
649
1,433
3,700
2,404'
1,566'
1,145
54,727'
1,857
732
175
1,471
9,193
13,678
16,341
17,033
17,879
17,524
18,350
16,326'
16,591
16,629
25 Latin America and Caribbean
26 Argentina
27
Bahamas
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
32 Colombia
33
Cuba
34
Ecuador
35
Guatemala3
36 Jamaica3
37
Mexico
38
Netherlands Antilles
39
Panama
40 Peru
41
Uruguay
42
Venezuela
43
Other Latin America and Caribbean
138,347
7,527
43,542
346
16,926
21,981
3,690
2,018
3
1,531
124
62
22,439
1,076
6,794
1,218
157
7,069
1,844
187,969
10,974
56,649
603
23,271
29,101
5,513
3,211
3
2,062
124
181
29,552
839
10,210
2,357
686
10,643
1,991
205,426
11,749
59,597
566
24,667
35,488
6,072
3,745
0
2,307
129
215
34,807
1,154
7,848
2.536
977
11,287
2,283
202,451
11,411
56,958
614
26,108
34,477
6,085
3,649
4
2,335
129
227
34,702
1,149
7,679
2,380
923
11,105
2,514
210,153
11,071
61,526
845
26,045
36,788
6,146
3,524
0
2,332
127
220
35,474
1,164
7,990
2,438
887
11,019
2,557
208,990
11,162
58,963
559
26,226
37,490
6,490
3,559
21
2,373
125
216
35,849
1,312
7,843
2,473
950
11,174
2,205
209,162
11,381
58,475
543
26,013
38,754
6,648
3,490
0
2,396
124
219
35,456
1,381
7,660
2,487
961
10,861
2,313
203,428'
11,021
56,609
509'
25,991'
35,356'
6,619'
3,444
0
2,380
130
216
35,016
1,302'
8,202'
2,401
930
11,137
2,165'
202,734
11.107
55,651
509
26,140
35,425
6,836
3,438
0
2,364
120
225
35,572
1,291
7,554
2,397
934
10,980
2,190
197,437
11,012
52,191
551
26,132
33,882
6,782
3,343
0
2,452
131
234
35,377
1,318
7,447
2,408
959
11,029
2,185
44 Asia
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle East oil-exporting countries4
Other Asia
49,851
60,952
67,950
63,133
63,615
67,597
65,167
65,808'
65,881
62,148
107
2,461
4,132
123
352
1,567
26,797
7,340
1,819
565
1,581
3,009
214
2,288
6,787
222
348
2,029
28,379
9,387
2,625
643
3,087
4,943
292
1,908
8,473
330
805
1,832
30,580
9,962
2,107
1,104
4,954
5,603
428
1,654
7,971
372
911
1,846
26,183
10,306
2,382
1,018
5,113
4,949
348
1,562
7,470
362
983
1,822
27,153
9,595
2,433
1,143
5,200
5,543
554
2,202
8,141
355
969
1,910
29,264
9,653
2,495
949
5,118
5,986
640
2,011
6,967
323
952
1,827
27,727
9,799
2,650
974
5,214
6,081
639
1,573
6,809
295
906
1,869
28,995'
9,558
2,756
1,089'
4,924
6,396
563
1,650
6,982
354
886
1,802
30,625
9,609
2,578
1,113
4,490
5,228
411
1,582
6,998
302
819
1,894
26,911
9,262
2,510
1,072
4,619
5.768
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries5
63
Other
3,503
238
284
1,011
112
657
1,201
5,346
322
353
2,012
57
801
1,802
6,654
747
440
2,634
33
1,073
1,727
6,655
698
486
2,908
26
1,000
1,536
6,764
666
561
2,974
28
967
1,568
6,840
734
497
3,065
39
1,004
1,502
7,048
638
549
3,307
43
1,025
1,485
6,969'
613
556
3,281
30
996
1,493'
6,829
650
545
3,152
18
944
1,522
6,869
674
582
3,140
18
938
1,516
64 Other countries
65
Australia
All other
66
1,376
1,203
172
2,107
1,713
394
2,918
2,276
642
3,109
2,489
620
2,942
2,345
597
2,996
2,435
561
3,036
2,481
554
3,210
2,582
628
3,274
2,673
601
3,168
2,507
661
56
68
164
74
103
114
209
198
71
681
45
46
47
48
49
50
51
52
53
54
55
56
67 Nonmonetary international and regional
organizations6
A Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
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 before April 1978 include claims of banks' domestic
customers on foreigners.
Nonbank-Reported
3.19
Data
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
1984
Type of claim
1981A
1982
1983
Apr.
May
388,775
58,042
146,485
123,664
45,106
78,558
60,584
399,796
58,092
155,703
125,654
47,066
78,588
60,347
June
July
Aug.'
405,225
59,889
156,233
127,679
48,337
79,342
61,424
396,024
58,423
153,432
123,786
46,990
76,796
60,383
Sept.
1 Total
287,557
396,015
426,229
2
3
4
5
6
7
8
251,589
31,260
96,653
74,704
23,381
51,322
48,972
355,705
45,422
127,293
121,377
44,223
77,153
61,614
391,326
57,530
146,219
124,051
47,066
76,985
63,527
35,968
1,378
40,310
2,491
34,903
2,969
36,643
3,458
33,839
4,575
26,352
30,763
26,064
25,823
23,382
8,238
7,056
5,870
7,362
5,882
29,952
38,153
37,820
42,657
38,454
40,369
42,499
45,790
Banks' own claims on foreigners
Foreign public borrowers
Own foreign offices'
Unaffiliated foreign banks
Deposits
Other
All other foreigners
9 Claims of banks' domestic customers 2
426,877
444,716
408,073
59,300
157.539
130.540
49,724
80,815
60,694
Oct.P
393,038
59,572
151,106
122,577
47,451
75,126
59,784
381,571
61,319
141,750
121,003
46,773
74,230
57,498
11 Negotiable and readily transferable
12 Outstanding collections and other
13 MEMO: Customer liability on
Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States 4 . . .
48,616'
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.
3.20
43,942'
47,654'
42,606'
43,416
4. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see July 1979 BULLETIN,
p. 550.
A Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
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.
1983
1 Total
8
9
10
11
1?
13
n.a.
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
Maturity; by borrower and area
2
3
4
5
6
7
42,913
By borrower
Maturity of 1 year or less'
Foreign public borrowers
All other foreigners
Maturity of over 1 year'
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less'
Europe
Canada
Latin America and Caribbean
Africa
All other 2
Maturity of over 1 year1
14
Europe
15
Canada
16
Latin America and Caribbean
17
18
Africa
19 All other 2
1981A
Sept.
Dec.
Mar.
June
Sept.P
154,590
228,150
236,952
243,310
237,642
249,927
240,806
116,394
15,142
101,252
38,197
15,589
22,608
173,917
21,256
152,661
54,233
23,137
31,095
175,957
25,138
150,819
60,994
28,297
32,697
176,270
24,034
152,237
67,040
32,495
34,544
162,998
20,444
142,554
74,644
36,306
38,338
172,410
21,010
151,400
77,517
37,768
39,749
163,041
21,075
141,966
77,765
37,960
39,805
28,130
4,662
48,717
31,485
2,457
943
50,500
7,642
73,291
37,578
3,680
1,226
53,489
6,658
76,099
33,686
4,570
1,454
56,064
6,211
73,637
34,571
4,199
1,589
53,764
6,579
65,559
31,286
4,472
1,340
59,405
6,990
64,780
34,793
4,790
1,652
56,797
5,879
61,502
32,348
4,798
1,717
8,100
1,808
25,209
1,907
900
272
11,636
1,931
35,247
3,185
1,494
740
12,356
1,760
39,185
4,735
1,819
1,139
13,365
1,857
43,603
4,828
2,286
1,101
13,063
2,038
50,913
5,133
2,291
1,206
12,827
2,203
54,278
5,107
1,865
1,237
11,261
1,802
56,567
5,128
1,857
1,150
A Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
1984
1982
1. Remaining time to maturity,
2. Includes nonmonetary international and regional organizations,
A61
A62
3.21
International Statistics • February 1985
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks'
Billions of dollars, end of period
1982
Area or country
1 Total
1980
1984
1983
1981
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
June 7 '
Sept.p
352.0
415.2
438.4
438.7
443.8'
439.9'
432.0'
438.0'
434.0'
430.3
408.6
162.1
13.0
14.1
12.1
8.2
4.4
2.9
5.0
67.4
8.4
26.5
175.5
13.3
15.3
12.9
9.6
4.0
3.7
5.5
70.1
10.9
30.2
175.4
13.6
15.8
12.2
9.7
3.8
4.7
5.1
70.3
11.0
29.3
179.7
13.1
17.1
12.7
10.3
3.6
5.0
5.0
72.1
10.4
30.2
182.7'
13.7
17.1
13.5
10.2
4.3
4.3
4.6
73.3'
12.5
29.2
177.3'
13.3
17.1
12.6
10.5
4.0
4.7
4.8
70.7'
10.8
28.7
169.1'
12.6
16.2
11.6
10.0
3.6
4.9
4.2
67.8'
9.0
29.2
168.2'
12.4
16.3
11.3
11.4
3.5
5.1
4.3
65.3'
8.3
30.1
165.7'
11.0
15.9
11.7
11.2
3.3
5.2
4.3'
64.5'
8.7'
30.0
157.8
10.8
14.3
11.0
11.5
3.0
4.3
4.2
60.2
8.9
29.5
148.6
9.8
14.4
10.0
9.7
3.4
3.5
3.9
57.9
8.1
27.9
13 Other developed countries
14 Austria
15 Denmark
16 Finland
17 Greece
18 Norway
19 Portugal
20 Spain
21 Turkey
22 Other Western Europe
23 South Africa
24 Australia
21.6
1.9
2.3
1.4
2.8
2.6
.6
4.4
1.5
1.7
1.1
1.3
28.4
1.9
2.3
1.7
2.8
3.1
1.1
6.6
1.4
2.1
2.8
2.5
32.7
2.0
2.5
1.8
2.6
3.4
1.6
7.7
1.5
2.1
3.6
4.0
33.7
1.9
2.4
2.2
3.0
3.3
1.5
7.5
1.4
2.3
3.7
4.4
34.0
2.1
3.3
2.1
2.9
3.3
1.4
7.1
1.5
2.3
3.6
4.6
34.5'
2.1
3.4
2.1
2.9
3.4
1.4
7.2
1.4
2.0
3.9
4.6
34.3'
1.9
3.3
1.8
2.9
3.2
1.4'
7.2
1.5
2.1
4.7
4.4
36.1'
1.9
3.4
2.4
2.8
3.3
1.5'
7.1
1.7
1.8
4.7
5.5
35.7
2.0
3.4
2.1
3.0
3.2
1.4'
7.1
1.9
1.8
4.8
5.2
37.1
2.0
3.1
2.3
3.3
3.2
1.7
7.3
2.0
1.9
4.7
5.7
36.3
1.8
2.9
1.9
3.2
3.2
1.6
6.9
1.9
1.7
5.0
6.2
25 OPEC countries26 Ecuador
27 Venezuela
28 Indonesia
29 Middle East countries
30 African countries
22.7
2.1
9.1
1.8
6.9
2.8
24.8
2.2
9.9
2.6
7.5
2.5
27.3
2.3
10.4
2.9
9.0
2.7
27.4
2.2
10.5
3.2
8.7
2.8
28.5
2.2
10.4
3.5
9.3
3.0
28.3
2.2
10.4
3.2
9.5
3.0
27.2
2.1
9.8
3.4
9.1
2.8
28.9
2.2
9.9
3.8
10.0
3.0
28.6
2.1
9.7
4.0
9.8
3.0
26.7
2.1
9.5
4.0
8.4
2.7
24.9
2.1
9.0
3.8
7.4
2.5
31 Non-OPEC developing countries
77.4
96.3
104.1
107.1
108.1'
108.8'
109.8'
111.5'
112.0'
113.8
111.9
7.9
16.2
3.7
2.6
15.9
1.8
3.9
9.4
19.1
5.8
2.6
21.6
2.0
4.1
9.2
22.4
6.2
2.8
25.0
2.6
4.3
8.9
22.9
6.3
3.1
24.5
2.6
4.0
9.0
23.2'
6.0
2.9
25.1
2.4
4.2
9.4
22.7'
5.8
3.2
25.3'
2.6
4.3
9.5
23.1'
6.3'
3.2
25.9
2.4
4.2
9.5
23.1'
6.4
3.2
26.1'
2.4
4.2
9.5
25.1'
6.5
3.1
25.6'
2.3
4.3'
9.2
25.4
6.7
3.0
26.7
2.3
4.0
9.1
26.3
7.1
2.9
26.1
2.2
3.9
.2
4.2
.3
1.5
7.1
1.1
5.1
1.6
.6
.2
5.1
.3
2.1
9.4
1.7
6.0
1.5
1.0
.2
4.9
.5
1.9
9.4
1.8
6.1
1.3
1.3
.2
5.3
.6
2.3
10.9
2.1
6.3
1.6
1.1
.2
5.1
.7'
2.0
10.9
2.5
6.6
1.6
1.4
.2
5.1
2.3
10.9'
2.6
6.4
1.8
1.2
.2
5.2
.8
1.7
10.9
2.8
6.2
1.7
1.0
.3
5.3
1.0
1.9
11.4'
2.9
6.2
2.1
1.0
.3
4.9
1.0
1.6
11.1
2.8
6.7'
1.9
.9
.6
5.8
1.0
1.9
11.2
2.7
6.3
1.8
1.1
.5
5.2
1.1
1.7
10.1
3.0
5.9
1.8
1.2
.8
.7
1.3
.8
.1
2.2
1.2
.7
.1
2.4
1.1
.8
.1
2.3
1.3
.8
.1
2.2
1.4
.8
.1
2.4
1.5
.8
.1
2.3
1.5
.8
.1
2.2
1.4
.8
.1
1.9
1.2
.8
.1
1.9
2 G-10 countries and Switzerland
3 Belgium-Luxembourg
4 France
5 Germany
6 Italy
7 Netherlands
8 Sweden
9 Switzerland
10 United Kingdom
11 Canada
12 Japan
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa3
2.1
1.1
.7
.2
2.3
52 Eastern Europe
53 U.S.S.R
54 Yugoslavia
55 Other
7.4
.4
2.3
4.6
7.8
.6
2.5
4.7
6.3
.3
2.2
3.8
6.2
.3
2.2
3.7
5.7
.3
2.2
3.2
5.8'
.4
2.3
3.0
5.3
.2
2.3
2.8
5.3
2.4'
2.8
4.9
.2
2.3'
2.5
4.9
.2
2.3
2.4
4.6
.2
2.3
2.1
56 Offshore banking centers
57 Bahamas
58 Bermuda
59 Cayman Islands and other British West Indies
60 Netherlands Antilles
61
Panama4
62 Lebanon
63 Hong Kong
64 Singapore
65 Others5
47.0
13.7
.6
10.6
2.1
5.4
i
8.i
5.9
.3
63.7
19.0
.7
12.4
3.2
7.7
.2
11.8
8.7
.1
72.2
21.4
.8
13.6
3.3
8.1
.1
15.1
9.8
.0
66.8
19.0
.9
12.9
3.3
7.6
.1
13.9
9.2
.0
67.9'
18.5'
1.0
12.5'
3.1
7.1
.1
15.1
10.4'
.0
69.1'
20.7'
.8
12.6'
2.6
6.6
.1
14.5'
11.2'
.0
69.4'
21.8'
.8
1I.C
4.1
5.7
.1
15.2'
10.5
.1
71.1'
22 .C
.9
12.7'
4.2
6.0
.1
14.9
10.3
.0
70.7'
24.6'
.7
11.4'
3.3
6.3
.1
14.4
9.9
.0
72.8
27.0
.7
11.6
3.3
6.4
.1
13.5
10.2
.0
65.6
23.5
1.0
10.2
3.3
5.6
.1
12.6
9.5
.0
66 Miscellaneous and unallocated6
14.0
18.8
20.4
17.9
16.9'
16.2'
16.9
17.0
16.4
17.3
16.8
•>
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 3.14 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.18 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches).
2. Besides the Organization of Petroleum Exporting Countries shown individually, this group includes other members of OPEC (Algeria, Gabon, Iran. Iraq.
.1'
Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) as well
as Bahrain and Oman (not formally members of OPEC).
3. Excludes Liberia.
4. Includes Canal Zone beginning December 1979.
5. Foreign branch claims only.
6. Includes New Zealand, Liberia, and international and regional organizations.
7. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
Nonbank-Reported
3.22
Data
A63
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States1
Millions of dollars, end o f period
1984
1983
Type, and area or country
980
1982
1981
June
Sept.
Dec.
Mar.
JuneP
1 Total
29,434
28,618
25,772
22,886
24,864
23,763
29,260
33,282
2 Payable in dollars
3 Payable in foreign currencies
25,689
3,745
24,909
3,709
22,540
3,232
19,986
2,900
22,023
2,841
20,688
3,076
25,978
3,282
30,096
3,186
By type
4 Financial liabilities
5
Payable in dollars
6
Payable in foreign currencies
11,330
8,528
2,802
12,157
9,499
2,658
11,066
8,858
2,208
11,179
9,144
2,035
10,961
9,025
1,936
10,477
8,619
1,858
14,236
12,145
2,092
17,927
15,876
2,052
7 Commercial liabilities
8 Trade payables
9
Advance receipts and other liabilities.
18,104
12,201
5,903
16,461
10,818
5,643
14,706
7,747
6,959
11,707
6,064
5,643
13,903
7,139
6,763
13,286
6,615
6,672
15,024
7,865
7,159
15,354
7,854
7,500
17,161
943
15,409
1,052
13,683
1,023
10,842
865
12,998
904
12,069
1,218
13,834
1,190
14,220
1,134
6,481
479
327
582
681
354
3,923
6,825
471
709
491
748
715
3,565
6,501
505
783
467
711
792
3,102
6,335
436
802
457
728
606
3,132
6,014
379
785
449
730
500
3,014
5,675
302
820
498
581
486
2,839
7,081
426
933
524
532
641
3,786
7,068
356
878
571
589
581
3,836
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
Asia
Japan
Middle East oil-exporting countries2
30
Africa
31
32
33
34
35
36
37
38
39
40
Oil-exporting countries3
All other4
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
964
963
746
876
788
768
798
721
3,136
964
1
23
1,452
99
81
3,356
1,279
7
22
1,241
102
98
2,751
904
14
28
1,027
121
114
2,623
776
10
34
1,033
151
124
2,737
784
13
32
1,095
185
117
2,609
751
13
32
1,018
215
124
4,907
1,411
51
37
2,635
245
121
8,631
3,572
13
25
4,228
239
124
723
644
38
976
792
75
1,039
715
169
1,319
943
205
1,388
957
201
1,396
962
170
1,423
1,013
170
1,482
1,031
180
11
1
14
0
17
0
17
0
19
0
19
0
19
0
16
0
15
24
12
9
15
10
9
9
4,402
90
582
679
219
499
1,209
3,770
71
573
545
220
424
880
3,682
52
598
468
346
364
880
3,395
41
618
439
342
357
656
3,426
47
523
462
243
449
809
3,153
62
437
427
268
241
637
3,567
40
488
417
259
477
847
3,397
45
524
501
265
246
794
888
897
1,495
1,468
1,418
1,841
1,776
1,840
1,300
8
75
111
35
367
319
1,044
2
67
67
2
340
276
1,012
16
93
60
32
379
165
1025
1,090
1,125
1
1
1
77
49
22
399
236
77
48
14
451
217
67
44
6
536
180
1,778
14
158
68
33
682
531
1,676
17
123
31
5
568
602
10,242
802
8,098
9,384
1,094
7,008
7,161
1,226
4,532
4,809
1,246
2,294
6,863
1,305
4,072
6,032
1,247
3,498
6,620
1,291
3,735
6,988
1,235
4,190
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
48
49
50
Asia
Japan
Middle East oil-exporting countries2-
51
52
Africa
Oil-exporting countries3
817
517
703
344
704
277
492
167
506
204
442
157
539
243
683
217
53
All other4
456
664
651
518
600
692
743
769
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.
A64
International Statistics • February 1985
3.23
CLAIMS ON UNAFFILIATED FOREIGNERS
United States1
Millions of dollars, end of period
Reported by Nonbanking Business Enterprises in the
1983
Type, and area or country
1980
1981
1984
1982
June
Sept.
Dec.
Mar.
JuneP
1 Total
34,482
36,185
28,637
33,310
32,652
34,210
32,499
30,382
2 Payable in dollars
3 Payable in foreign currencies
31,528
2,955
32,582
3,603
26,002
2,635
30,653
2,657
29,772
2,880
31,174
3,036
29,611
2,888
27,417
2,965
By type
4 Financial claims
5 Deposits
6
Payable in dollars
7
Payable in foreign currencies
8 Other financial claims
9
Payable in dollars
10
Payable in foreign currencies
19,763
14,166
13,381
785
5,597
3,914
1,683
21,142
15,081
14,456
625
6,061
3,599
2,462
17,594
13,058
12,628
430
4,536
2,895
1,641
22,642
17,819
17,379
439
4,824
3,226
1,598
21,752
16,907
16,463
445
4,845
3,019
1,826
23,075
17,954
17,457
497
5,121
3,219
1,902
21,638
16,602
16,173
428
5,036
3,247
1,788
19,947
14,878
14,369
510
5,068
3,312
1,756
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
14,720
13,960
759
15,043
14,007
1,036
11,042
9,995
1,047
10,668
9,265
1,402
10,899
9,566
1,334
11,135
9,725
1,410
10,862
9,540
1,321
10,436
9,105
1,330
14
15
14,233
487
14,527
516
10,479
563
10,048
620
10,290
609
10,498
637
10,191
671
9,736
699
6,069
145
298
230
51
54
4,987
4,596
43
285
224
50
117
3,546
4,873
15
134
178
97
107
4,064
7,304
12
140
216
136
37
6,514
6,232
25
135
151
89
34
5,577
6,374
37
130
129
49
38
5,768
6,131
30
145
131
57
90
5,468
6,156
37
132
161
138
61
5,398
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
5,036
6,755
4,287
4,885
4,958
5,836
5,400
5,009
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
7,811
3,477
135
96
2,755
208
137
8,812
3,650
18
30
3,971
313
148
7,546
3,279
32
62
3,255
274
139
9,380
4,037
92
48
4,065
348
152
9,500
3,829
62
49
4,457
315
137
9,809
4,745
96
53
3,830
291
134
9,066
3,773
3
87
4,302
279
130
7,570
2,993
5
83
3,674
228
124
607
189
20
758
366
37
698
153
15
771
288
14
764
257
8
764
297
4
727
284
7
909
252
8
208
26
173
46
158
48
154
48
151
45
147
55
144
42
158
35
32
48
31
149
148
145
169
144
5,544
233
1,129
599
318
354
929
5,405
234
776
561
299
431
985
3,828
151
474
357
350
360
811
3,473
145
497
366
243
331
734
3,412
132
486
382
282
292
738
3,678
142
459
348
333
317
809
3,608
173
413
363
308
336
787
3,542
142
407
440
299
250
812
31
32
33
34
35
36
37
38
39
40
41
42
43
Japan
Middle East oil-exporting countries2
Africa
Oil-exporting countries3
All other
4
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
52
53
54
55
56
57
Japan
Middle East oil-exporting countries2
Africa
Oil-exporting countries3
All other
4
914
967
633
711
792
829
1,061
933
3,766
21
108
861
34
1,102
410
3,479
12
223
668
12
1,022
424
2,526
21
261
258
12
775
351
2,728
30
111
512
21
957
273
2,870
15
246
611
12
898
282
2,695
8
190
493
7
884
272
2,419
8
216
357
7
745
268
2,042
4
89
310
8
577
241
3,522
1,052
825
3,959
1,245
905
3,050
1,047
751
2,867
949
698
2,938
1,037
719
3,071
1,122
737
2,997
1,186
701
3,085
1,178
710
653
153
772
152
588
140
528
130
562
131
585
139
497
132
536
128
321
461
417
361
326
277
280
297
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
Securities Holdings and Transactions
3.24
A65
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1984
1984
Transactions, and area or country
1982
1983
Jan.Oct.
Apr.
June
May
July
Aug.
Sept.
Oct.p
U.S. corporate securities
STOCKS
1 Foreign purchases
4,552
4,899
3,359
3,915
7,255'
7,399
4,046
4,898
4,659
5,399
-446
-347
-556
-144'
-852
-740
-454
-357
-565
-290'
-921
-751
208
38
-43
-15
90
137
73
25
-58
66
5
2
-281
100
-40
-47
-220
-80
-61
82
-168
-28
-4
6
-317
-3
2
-76
-120
-179
158
38
-215
-27
3
2
-606
-45
-38
-34
-321
-141
188
-58
-55
-49
-2
16
-410'
-28
-125
-19'
-358
146
129
213
-214
-57
-5
54
-702
-67
-63
-66
-335
-143
149
9
-207
-160
-6
-3
-529
-37
-25
-47
-129
-251
150
-89
-270
-92
-8
87
205
1
8
10
9
147
69
11
24,049
23,099
27,696
20,769
1,708
1,866
1,619
1,442
2,004
1,795
3,082
2,503
2,885'
2,030
3,356
2,035
6,794
3,257
51,202
53,562
4,510
4,189
5,048
5,494
5,410
-2,360
321
5,312
-2,565
320
2,530
-143
333
-63
-579
3,117
222
317
366
247
2
131
3,979
-97
1,045
-109
1,325
1,799
1,151
529
-807
394
42
24
-2,471
-215
29
-271
-1,206
-791
1,492
396
-1,790
-327
-9
143
85
98
21,639
20,188
41,881
37,981
69,770
64,360
3,901
3,816
2 Foreign sales
3 Net purchases, or sales ( - ) . . .
4 Foreign countries
5
6
7
8
9
10
11
12
13
14
15
16
17
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean.
Middle East'
Other Asia
Africa
Other countries
Nonmonetary international and
regional organizations....
BONDS 2
18 Foreign purchases
19 Foreign sales
1,451
950
6,927
-159
178
208
579
855'
1,321
3,537
20 Net purchases, or sales ( - )
1,479
935
6,818
-226
212
168
539
902'
1,278
3,557
21 Foreign countries
2,082
305
2,110
33
157
-589
24
159
-752
-22
-19
7
961
-89
347
51
632
434
123
100
-1,166
865
0
52
6,008
194
1,410
79
209
3,645
-98
268
-787
1,417
2
8
15
-5
68
-12
-22
-246
-77
-4
-263
102
I
1
85
0
107
-1
8
-59
3
13
11
100
0
0
272
4
122
11
35
77
32
15
-287
135
0
0
480
33
256
3
13
-80
-35
14
-60
138
0
1
502'
17
181
16
49
311'
54
76
1
265
1
3
1,004
8
19
2
9
922
3
64
-19
223
1
3
3,559
143
609
22
253
2,460
-3
41
-232
192
0
0
-28
15
109
67
-34
40
41
-48
43
-20
-501'
1,246'
1,747'
-342
919
1,260
177
1,823
1,646
22
23
24
25
26
27
28
29
30
31
32
33
34
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean.
Middle East1
Other Asia
Africa
Other countries
Nonmonetary
international and
regional organizations . . . .
Foreign securities
35 Stocks, net purchases, or sales ( - )
36 Foreign purchases
37 Foreign sales
-1,341
7,163
8,504
-3,765
13,281
17,046
-163
12,673
12,836
-18
1,242
1,260
70
1,163
1,092
-40
1,110
1,150
113
895
782
38 Bonds, net purchases, or sales ( - )
39 Foreign purchases
40 Foreign sales
-6,631
27,167
33,798
-3,131
36,441
39,572
-2,396
45,395
47,791
-409
3,817
4,226
-646
5,158
5,804
241
5,308
5,066
184
4,427
4,243
-293
5,770
6,062
-435
4,168
4,604
-1,288
4,426
5,714
41 Net purchases, or sales ( - ) , of stocks and bonds
-7,972
-6,896
-2,559
-427
-575
201
297
-794'
-777
-1,111
42
43
44
45
46
47
48
49
-6,806
-2,584
-2,363
336
-1,822
-9
-364
-6,451
-5,423
-1,312
1,120
-855
141
-122
-2,712
-6,611
-70
2,117
1,872
-94
74
-425
-551
-187
130
187
-4
0
-650
-1,527
37
602
243
-16
12
187
-471
122
465
80
-4
-6
235
-462
174
237
333
-21
-25
-631'
-623'
-7
127
-134
11
-4
-832
-710
-448
83
165
-14
92
-1,076
-1,573
-69
117
463
-19
6
-1,165
-445
153
-2
74
15
62
55
-36
Foreign countries
Europe
Canada
Latin America and Caribbean
Asia
Africa
Other countries
Nonmonetary international and
regional organizations
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
-163
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.
A66
3.25
International Statistics • February 1985
MARKETABLE U.S. TREASURY BONDS AND NOTES
Millions of dollars
Foreign Holdings and Transactions
1984
Country or area
1982
1984
1983
Jan.Oct.
Apr.
May
June
July
Aug.
Sept.
Oct .P
Holdings (end of period)1
1 Estimated total2
85,220
88,932
92,013
93,421
93,307
94,912
101,507
97,688
100,653
2 Foreign countries 2
80,637
83,818
85,427
85,810
86,782
87,960
93,536
91,799
92,921
3 Europe2
4
Belgium-Luxembourg
5
Germany2
6
Netherlands
7
Sweden
Switzerland2
8
9
United Kingdom
10 Other Western Europe
11
Eastern Europe
12 Canada
29,284
447
14,841
2,754
677
1,540
6,549
2,476
0
602
35,509
16
17,290
3,129
847
1,118
8,515
4,594
0
1.301
37,790
91
19,201
3,117
949
1,241
8,420
4,776
0
1,299
38,386
61
19,649
2,979
954
1,403
8,656
4,691
-1
1,493
39,295
135
19,735
3,014
940
1,752
9,200
4,525
-1
1,600
40,389
138
19,627
3,120
957
2,021
9,443
5,084
-1
1,631
44,379
171
20,663
3,133
905
2,089
12,301
5,119
-1
1,862
43,661
191
19,915
3,127
981
2,188
11,988
5,272
-1
2,149
44,456
218
19,876
3,585
980
2,015
12,729
5,053
-1
2,386
13
14
15
16
17
18
19
20
1,076
188
656
232
49,543
11,578
77
55
863
64
716
83
46,026
13,911
79
38
572
65
453
53
45,626
14,551
85
57
777
65
546
166
44,989
14,875
88
77
677
75
489
112
45,046
15,365
88
77
134
75
591
-532
45,610
15,750
88
108
447
76
822
-452
46,610
16,279
-11
250
611
79
914
-382
45,135
16,250
15
227
931
80
975
-124
44,862
17,101
15
271
4,583
4,186
6
5,114
4,404
6
6,586
5,936
6
7,611
6,946
6
6,525
5,860
6
6,952
6,241
6
7,971
7,340
6
5,889
5,191
6
7,732
6,847
6
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
All other
21 Nonmonetary international and regional organizations
22
International
23
Latin American regional
Transactions (net purchases, or sales ( - ) during period)
24 Total2
14,972
3,711
11,721
2,348
1,407
-114
1,599
6,596
-3,820
2,965
25 Foreign countries2
26
Official institutions
27
Other foreign 2
28 Nonmonetary international and regional organizations
16,072
14,550
1,518
-1,097
3,180
779
2,400
535
9,103
-866
9,971
2,616
1,025
622
403
1,322
382
-358
740
1,026
972
-871
1,843
-1,086
1,172
177
994
428
5,576
1,366
4,210
1,020
-1,736
-1,971
235
-2,084
1,122
-872
1,993
1,843
7,575
-552
-5,419
-4,760
-101
-678
0
-1,037
0
67
0
-312
0
-411
-100
-144
0
-955
0
MEMO: Oil-exporting countries
29 Middle East 3
30 Africa4
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.
-1
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.
Interest and Exchange Rates
3.26
A67
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per a n n u m
Rate on Nov. 30, 1984
Rate on Nov. 30, 1984
Austria..
Belgium.
Brazil...
Canada..
Denmark
Percent
Month
effective
4.5
11.0
49.0
10.75
7.0
June 1984
Feb. 1984
Mar. 1981
Nov. 1984
Oct. 1983
France'
Germany, Fed. Rep. of
Italy
Japan
Netherlands
1. As of the end of February 1981, the rate is that at which the Bank of France
discounts Treasury bills for 7 to 10 days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either discounts
3.27
Rate on Nov. 30, 1984
Country
Country
Country
Percent
Month
effective
10.75
4.5
16.5
5.0
5.0
Nov. 1984
June 1984
Sept. 1984
Oct. 1983
Sept. 1983
Percent
8.0
Norway
Switzerland
United Kingdom2
Venezuela
4.0
11.0
or makes advances against eligible commercial paper and/or government commercial banks or brokers. For countries with more than one rate applicable to such
discounts or advances, the rate shown is the one at which it is understood the
central bank transacts the largest proportion of its credit operations.
FOREIGN SHORT-TERM INTEREST RATES
P e r c e n t per a n n u m , a v e r a g e s of daily
figures
1984
Country, or type
1
2
3
4
5
6
7
8
9
10
1981
1982
1983
May
June
July
Aug.
Sept.
Oct.
Nov.
Eurodollars
United Kingdom
Canada
Germany
Switzerland
16.79
13.86
18.84
12.05
9.15
12.24
12.21
14.38
8.81
5.04
9.57
10.06
9.48
5.73
4.11
11.53
9.32
11.52
6.08
3.83
11.68
9.43
11.86
6.11
4.15
12.02
11.38
13.03
6.09
4.72
11.81
11.09
12.41
6.00
4.81
11.67
10.79
12.20
5.81
5.04
10.77
10.60
11.99
6.06
5.23
9.50
9.87
11.09
5.92
5.03
Netherlands
France
Italy
Belgium
Japan
11.52
15.28
19.98
15.28
7.58
8.26
14.61
19.99
14.10
6.84
5.58
12.44
18.95
10.51
6.49
6.05
12.16
16.80
11.80
6.24
6.09
12.23
16.75
11.90
6.35
6.39
11.70
16.73
11.90
6.31
6.26
11.37
16.50
11.73
6.35
6.23
11.00
17.28
11.16
6.33
6.16
10.75
17.13
11.00
6.31
5.87
10.54
17.13
10.81
6.32
NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate.
A68
3.28
International Statistics •
F e b r u a r y 1985
FOREIGN EXCHANGE RATES
C u r r e n c y units p e r dollar
1984
Country/currency
1981
1982
1983
June
July
Aug.
Sept.
Oct.
Nov.
Australia/dollar1
Austria/schilling
Belgium/franc
Brazil/cruzeiro
Canada/dollar
China, P.R./yuan
Denmark/krone
114.95
15.948
37.194
92.374
1.1990
1.7031
7.1350
101.65
17.060
45.780
179.22
1.2344
1.8978
8.3443
90.14
17.968
51.121
573.27
1.2325
1.9809
9.1483
88.26
19.226
55.840
1,643.81
1.3040
2.2178
10.050
83.42
19.998
57.714
1,819.00
1.3238
2.2996
10.4178
84.73
20.268
58.282
1994.30
1.3035
2.3718
10.5174
83.08
21.293
61.132
2226.79
1.3145
2.5469
10.9753
83.64
21.557
62.048
2453.64
1.3189
2.6488
11.090
85.88
21.075
60.475
2734.16
1.3168
2.6785
10.824
8
9
10
11
12
13
14
13
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee
Ireland/pound1
Israel/shekel
4.3128
5.4396
2.2631
n.a.
5.5678
8.6807
161.32
n.a.
4.8086
6.5793
2.428
66.872
6.0697
9.4846
142.05
24.407
5.5636
7.6203
2.5539
87.895
7.2569
10.1040
124.81
55.865
5.8182
8.4181
2.7397
108.85
7.8131
11.064
111.67
215.06
6.0187
8.7438
2.8492
112.40
7.8519
11.371
107.63
253.14
6.0626
8.8567
2.8856
115.11
7.8388
11.556
106.84
n.a.
6.2783
9.3041
3.0314
120.40
7.8430
11.858
102.28
n.a.
6.3726
9.4108
3.0678
126.06
7.8242
12.027
100.85
n.a.
6.2653
9.1981
2.9985
123.63
7.8235
12.078
103.41
n.a.
16
17
18
19
20
21
22
23
24
Italy/lira
Japan/yen
Malaysia/ringgit
Mexico/peso
Netherlands/guilder 1
New Zealand/dollar
Norway/krone
Philippines/peso
Portugal/escudo
1138.60
220.63
2.3048
24.547
2.4998
86.848
5.7430
7.8113
61.739
1354.00
249.06
2.3395
72.990
2.6719
75.101
6.4567
8.5324
80.101
1519.30
237.55
2.3204
155.01
2.8543
66.790
7.3012
11.0940
111.610
1,694.80
233.57
2.3109
196.54
3.0882
64.205
7.8162
14.250
141.83
1,751.18
243.07
2.3385
196.63
3.2155
55.631
8.2151
n.a.
152.17
1780.47
242.26
2.3331
196.98
3.2539
49.912
8.2991
n.a.
151.02
1870.79
245.46
2.3528
197.71
3.4188
48.953
8.6246
n.a.
158.45
1898.98
246.75
2.4076
203.33
3.4597
48.614
8.8721
n.a.
163.36
1863.05
243.63
2.4300
210.79
3.3817
49.278
8.7175
n.a.
163.10
25
26
27
28
29
30
31
32
33
34
35
Singapore/dollar
South Africa/rand1
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/Dollar
Thailand/baht
United Kingdom/pound1
Venezuela/bolivar
2.1053
114.77
n.a.
92.396
18.967
5.0659
1.9674
n.a.
21.731
202.43
4.2781
2.1406
92.297
731.93
110.09
20.756
6.2838
2.0327
n.a.
23.014
174.80
4.2981
2.1136
89.85
776.04
143.500
23.510
7.6717
2.1006
n.a.
22.991
151.59
10.6840
2.1122
76.49
802.20
154.75
25.176
8.0993
2.2832
39.843
23.010
137.70
14.709
2.1473
66.52
810.96
161.37
25.223
8.3063
2.4115
39.477
23.020
132.00
13.067
2.1472
63.76
811.42
164.41
25.285
8.3489
2.4150
39.092
23.018
131.32
12.725
2.1635
60.08
815.82
170.19
25.605
8.5892
2.5049
39.159
23.013
125.63
n.a.
2.1667
56.54
820.03
172.15
25.906
8.6887
2.5245
39.226
23.020
121.96
n.a.
2.1554
55.47
818.89
168.10
26.075
8.5957
2.4700
39.419
26.736
123.92
n.a.
102.94
116.57
125.34
134.31
139.30
140.21
145.70
147.56
144.92
1
2
3
4
5
6
7
MEMO
United States/dollar2
1. Value in U.S. cents.
2. 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 p. 700 of the August 1978 BULLETIN.
NOTE. Averages of certified noon buying rates in New York for cable transfers.
Data in this table also appear in the Board's G.5 (405) release. For address, see
inside front cover.
A69
Guide to Tabular Presentation,
Statistical Releases, and Special Tables
GUIDE TO TABULAR
PRESENTATION
Symbols and Abbreviations
c
e
P
r
*
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when
about half of the figures in that column are changed.)
Amounts insignificant in terms of the last decimal place
shown in the table (for example, less than 500,000
when the smallest unit given is millions)
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
General Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed
issues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
S TA TIS TICAL RELEA
obligations of the Treasury. "State and local government"
also includes municipalities, special districts, and other political subdivisions.
In some of the tables details do not add to totals because of
rounding.
SES
List Published Semiannually, with Latest Bulletin Reference
Issue
Anticipated schedule of release dates for periodic releases
SPECIAL
Page
December 1984
All
TABLES
Published Irregularly, with Latest Bulletin Reference
Assets
Assets
Assets
Assets
Assets
Assets
Assets
Assets
and
and
and
and
and
and
and
and
liabilities
liabilities
liabilities
liabilities
liabilities
liabilities
liabilities
liabilities
of
of
of
of
of
of
of
of
commercial banks,
commercial banks,
commercial banks,
commercial banks,
U.S. branches and
U.S. branches and
U.S. branches and
U.S. branches and
March 31, 1983
June 30, 1983
September 30, 1983
December 31, 1983
agencies of foreign banks,
agencies of foreign banks,
agencies of foreign banks,
agencies of foreign banks,
June 30, 1983
September 30, 1983
December 31, 1983
March 31, 1984
August
December
March
June
December
March
June
November
1983
1983
1984
1984
1983
1984
1984
1984
A70
A68
A68
A66
A74
A74
All
A4
A70
Federal Reserve Board of Governors
Chairman
Vice Chairman
PAUL A . VOLCKER,
PRESTON M A R T I N ,
OFFICE
OF BOARD
MEMBERS
HENRY C.
OFFICE
OF STAFF
MONETARY
JOSEPH R . C O Y N E , Assistant
to the
Board
D O N A L D J. W I N N , Assistant
to the
Board
S T E V E N M . ROBERTS, Assistant
to the
DIRECTOR
FOR
AND FINANCIAL
POLICY
S T E P H E N H . A X I L R O D , Staff
Chairman
ANTHONY F. COLE, Special Assistant to the Board
ANNETTE P. FRIBOURG, Special Assistant to the Board
NAOMI P. SALUS, Special Assistant to the Board
DONALD L. KOHN, Deputy
Director
Staff
S T A N L E Y J. S I G E L , Assistant
Director
to the
Board
NORMAND R.V. BERNARD, Special
DIVISION
LEGAL
WALLICH
J. CHARLES PARTEE
OF RESEARCH
Assistant
AND
STATISTICS
DIVISION
JAMES L . K I C H L I N E ,
M I C H A E L B R A D F I E L D , General
Counsel
J. VIRGIL MATTINGLY, JR., Associate General
Counsel
RICHARD M. ASHTON, Assistant General
Counsel
MARYELLEN A. BROWN, Assistant to the General
Counsel
Director
E D W A R D C . E T T I N , Deputy
Director
M I C H A E L J. P R E L L , Deputy
Director
JOSEPH S . Z E I S E L , Deputy
Director
JARED J. E N Z L E R , Associate
Director
E L E A N O R J . S T O C K W E L L , Associate
OFFICE
OF THE
M A R T H A B E T H E A , Assistant
Secretary
Secretary
Secretary
S U S A N J. L E P P E R , Assistant
Director
Director
T H O M A S D . S I M P S O N , Assistant
Director
L A W R E N C E S L I F M A N , Assistant
Director
S T E P H E N P . T A Y L O R , Assistant
OF
CONSUMER
AND COMMUNITY
Director
PETER A . T I N S L E Y , Assistant
Director
L E V O N H . G A R A B E D I A N , Assistant
AFFAIRS
Director
Director
Director
ROBERT M . F I S H E R , Assistant
BARBARA R . L O W R E Y , Associate
JAMES M C A F E E , Associate
Director
DAVID E. LINDSEY, Deputy Associate
HELMUT F. WENDEL, Deputy Associate
SECRETARY
WILLIAM W . WILES,
DIVISION
to the
Director
(Administration)
GRIFFITH L . GARWOOD,
Director
J E R A U L D C . K L U C K M A N , Associate
G L E N N E . L O N E Y , Assistant
Director
DIVISION
Director
DOLORES S . S M I T H , Assistant
OF INTERNATIONAL
EDWIN M . TRUMAN,
DIVISION
OF
SUPERVISION
Director
LARRY J. PROMISEL, Senior Associate
CHARLES J. SIEGMAN, Senior Associate
BANKING
AND
D A L E W . H E N D E R S O N , Associate
REGULATION
ROBERT F . G E M M I L L , Staff
JOHN E . R Y A N ,
PETER H O O P E R , I I I , Assistant
Director
W I L L I A M T A Y L O R , Deputy
D A V I D H . H O W A R D , Assistant
Director
FREDERICK R . D A H L , Associate
DON E. KLINE, Associate
Director
Director
FREDERICK M . S T R U B L E , Associate
HERBERT A . B I E R N , Assistant
Director
Director
A N T H O N Y G . C O R N Y N , Assistant
Director
JACK M . E G E R T S O N , Assistant
Director
ROBERT S . P L O T K I N , Assistant
Director
S T E P H E N C . S C H E M E R I N G , Assistant
Director
R I C H A R D S P I L L E N K O T H E N , Assistant
S I D N E Y M . S U S S A N , Assistant
LAURA M. HOMER, Securities
FINANCE
Director
Director
Director
Credit
Officer
R A L P H W . S M I T H , J R . , Assistant
Director
Director
Director
Adviser
Director
Director
Director
Board
A71
and Official Staff
E M M E T T J. RICE
LYLE E.
OFFICE
STAFF
MARTHA R.
SEGER
GRAMLEY
OFFICE
OF
DIRECTOR
FOR
MANAGEMENT
S. DAVID FROST, Staff
Director
EDWARD T. MULRENIN, Assistant Staff
Director
WILLIAM R. JONES, Assistant Staff Director for
Program
Project
Improvement
STEPHEN R. MALPHRUS. Assistant Staff Director for Office
Automation
and
Technology
PORTIA W. THOMPSON, EEO Programs
Officer
FEDERAL
OF STAFF
DIRECTOR
RESERVE
BANK
THEODORE E. ALLISON, Staff
Director
JOSEPH W. DANIELS, SR., Advisor, Equal
Opportunity
Programs
DIVISION
BANK
OF FEDERAL
OF DATA
PROCESSING
CHARLES L . H A M P T O N ,
Director
BRUCE M. BEARDSLEY, Deputy
Director
GLENN L. CUMMINS, Assistant
Director
NEAL H. HILLERMAN, Assistant
Director
RICHARD J. MANASSERI, Assistant
Director
ELIZABETH B. RIGGS, Assistant
Director
WILLIAM C. SCHNEIDER, JR., Assistant
Director
ROBERT J. ZEMEL, Assistant
Director
DIVISION
OF
PERSONNEL
DAVID L. SHANNON,
Director
JOHN R. WEIS, Assistant
Director
CHARLES W. WOOD, Assistant
Director
OFFICE
OF THE
CONTROLLER
GEORGE E . L I V I N G S T O N ,
Controller
BRENT L. BOWEN, Assistant
DIVISION
OF SUPPORT
ROBERT E . F R A Z I E R ,
Controller
SERVICES
Director
WALTER W. KREIMANN, Associate
Director
GEORGE M. LOPEZ, Assistant
Director
*On loan from the Federal Reserve Bank of Richmond (Baltimore
Branch).
Employment
RESERVE
OPERATIONS
CLYDE H . FARNSWORTH, JR.,
DIVISION
FOR
ACTIVITIES
Director
ELLIOTT C. MCENTEE, Associate
Director
DAVID L. ROBINSON, Associate
Director
C. WILLIAM SCHLEICHER, JR., Associate
Director
WALTER ALTHAUSEN, Assistant
Director
CHARLES W. BENNETT, Assistant
Director
ANNE M. DEBEER, Assistant
Director
JACK DENNIS, JR., Assistant
Director
EARL G. HAMILTON, Assistant
Director
* WILLIAM E. PASCOE, III, Assistant
Director
A72
Federal Reserve Bulletin • February 1985
Federal Open Market Committee
FEDERAL
OPEN
MARKET
COMMITTEE
P A U L A . VOLCKER,
EDWARD G.
BOEHNE
Chairman
LYLE E . GRAMLEY
ROBERT H . B O Y K I N
KAREN N .
E . G E R A L D CORRIGAN
PRESTON M A R T I N
J. C H A R L E S PARTEE
HORN
E M M E T T J. RICE
M A R T H A R . SEGER
HENRY C . WALLICH
STEPHEN H. AXILROD, Staff Director and
Secretary
NORMAND R.V. BERNARD, Assistant
Secretary
NANCY M. STEELE, Deputy Assistant
Secretary
MICHAEL BRADFIELD, General
Counsel
JAMES H. OLTMAN, Deputy General
Counsel
JAMES L . K I C H L I N E ,
Economist
EDWIN M. TRUMAN, Economist
(International)
JOSEPH E. BURNS, Associate
Economist
JOHN M. DAVIS, Associate
Economist
RICHARD G. DAVIS, Associate
Economist
DONALD L. KOHN, Associate
Economist
RICHARD W. LANG, Associate
Economist
Economist
DAVID E. LINDSEY, Associate
MICHAEL J. PRELL, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
GARY H. STERN, Associate
Economist
JOSEPH S. ZEISEL, Associate
Economist
PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market
Account
SAM Y. CROSS, Manager for Foreign Operations, System Open Market
Account
FEDERAL
ADVISORY
COUNCIL
First District
T. PRESTON, Second District
GEORGE A . B U T L E R , Third District
JULIEN L . M C C A L L , Fourth District
JOHN G . M E D L I N , JR., Fifth District
PHILIP F. S E A R L E , Sixth District
ROBERT L . N E W E L L ,
LEWIS
F. S U L L I V A N , Seventh District
Eighth District
E. PETER G I L L E T T E , JR., Ninth District
N . B E R N E H A R T , Tenth District
N A T S. ROGERS, Eleventh District
G . ROBERT T R U E X , JR., Twelfth District
BARRY
WILLIAM H . B O W E N ,
HERBERT V . PROCHNOW,
WILLIAM J. KORSVIK, Associate
Secretary
Secretary
A73
and Advisory Councils
CONSUMER
ADVISORY
COUNCIL
TIMOTHY
THOMAS
D.
Minneapolis, Minnesota, Chairman
New York, New York, Vice Chairman
MARRINAN,
C L A R K , JR.,
Honolulu, Hawaii
Centerville, Minnesota
E L V A Q U I J A N O , San Antonio, Texas
B R E N D A L. S C H N E I D E R , Detroit, Michigan
P A U L A A. S L I M A K , Cleveland, Ohio
G L E N D A G . S L O A N E , Washington, D.C.
H E N R Y J. S O M M E R , Philadelphia, Pennsylvania
T E D L. SPURLOCK, New York, New York
M E L STILLER, Boston, Massachusetts
CHRISTOPHER J. S U M N E R , Salt Lake City, Utah
W I N N I E F. T A Y L O R , San Francisco, California
M I C H A E L M . V A N B U S K I R K , Columbus, Ohio
M E R V I N W I N S T O N , Minneapolis, Minnesota
M I C H A E L ZOROYA, St. Louis, Missouri
Medford, Massachusetts
Washington, D.C.
JEAN A. CROCKETT, Philadelphia, Pennsylvania
THERESA F A I T H C U M M I N G S , Springfield, Illinois
S T E V E N M. G E A R Y , Jefferson City, Missouri
R I C H A R D M. H A L L I B U R T O N , Kansas City, Missouri
CHARLES C . H O L T , Austin, Texas
E D W A R D N. L A N G E , Seattle, Washington
K E N N E T H V. L A R K I N , Berkeley, California
F R E D S. M C C H E S N E Y , Atlanta, Georgia
FREDERICK H . M I L L E R , Norman, Oklahoma
M A R G A R E T M. M U R P H Y , Columbia, Maryland
ROBERT F . M U R P H Y , Detroit, Michigan
H E L E N N E L S O N , Mill Valley, California
RACHEL
G.
L.
LAWRENCE
BRATT,
JOSEPH
JONATHAN B R O W N ,
THRIFT INSTITUTIONS
ADVISORY
L.
S.
OKINAGA,
PERKOWSKI,
COUNCIL
Miami, Florida, President
Los Angeles, California, Vice President
THOMAS R . BOMAR,
RICHARD
H.
DEIHL,
Harwich Port, Massachusetts
Philadelphia, Pennsylvania
J. M I C H A E L C O R N W A L L , Dallas, Texas
H A R O L D W. G R E E N W O O D , JR., Minneapolis, Minnesota
ELLIOTT G . CARR,
M.
T O D D COOKE,
MICHAEL R .
Rock Hill, South Carolina
East Lansing, Michigan
J O H N T . M O R G A N , New York, New York
S A R A H R. W A L L A C E , Newark, Ohio
WISE, Denver, Colorado
JOHN
A.
HARDIN,
FRANCES LAZNENSKY,
A74
Federal Reserve Board Publications
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A75
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Staff Studies numbers 115-125 are out of print.
114. MULTIBANK
DENCE
RECENT
EVI-
PERFORMANCE
IN
A
1 2 6 . D E F I N I T I O N A N D M E A S U R E M E N T OF E X C H A N G E M A R -
WORLD:
KET I N T E R V E N T I O N , by Donald B. Adams and Dale
W. Henderson. August 1983. 5 pp.
127.
CATIONS.
RESERVE,
128.
May 1984. (High School Level.)
W R I T I N G IN S T Y L E AT THE F E D E R A L R E S E R V E .
JANUARY-MARCH
by Margaret L.
1975,
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OF THE F E D E R A L
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C R E D I T C A R D S IN THE U . S .
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IN A N I N T E R D E P E N D E N T
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by Margaret
1 3 0 . E F F E C T S OF E X C H A N G E R A T E V A R I A B I L I T Y ON
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Alice in Debitland
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
The Equal Credit Opportunity Act and . . . Age
The Equal Credit Opportunity Act and . . . Credit Rights in
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The Equal Credit Opportunity Act and . . . Doctors, Lawyers, Small Retailers, and Others Who May Provide Incidental Credit
The Equal Credit Opportunity Act and . . . Women
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Federal Reserve Glossary
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Instructional Materials of the Federal Reserve System
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
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Monetary Control Act of 1980
Organization and Advisory Committees
Truth in Leasing
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What Truth in Lending Means to You
132. TIME-SERIES
TWEEN
STUDIES
EXCHANGE
OF
THE
RATES
RELATIONSHIP
AND
BE-
INTERVENTION:
A
R E V I E W OF THE T E C H N I Q U E S A N D L I T E R A T U R E ,
by
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133. RELATIONSHIPS
AMONG
EXCHANGE
RATES,
INTER-
V E N T I O N , A N D I N T E R E S T R A T E S : A N EMPIRICAL I N VESTIGATION,
by Bonnie
Loopesko. November
E.
1983. 20 pp.
1 3 4 . S M A L L EMPIRICAL M O D E L S OF E X C H A N G E
MARKET
I N T E R V E N T I O N : A R E V I E W OF T H E L I T E R A T U R E ,
by
Ralph W. Try on. October 1983. 14 pp.
* 135.
S M A L L EMPIRICAL M O D E L S OF E X C H A N G E
MARKET
I N T E R V E N T I O N : A P P L I C A T I O N S TO C A N A D A ,
GERMA-
NY, AND JAPAN, by Deborah J. Danker, Richard A.
Haas, Dale W. Henderson, Steven A. Symansky, and
Ralph W. Tryon.
1 3 6 . T H E E F F E C T S OF F I S C A L POLICY ON THE U . S . E C O N O -
MY, by Darrell Cohen and Peter B. Clark. January
1984. 16 pp.
1 3 7 . T H E IMPLICATIONS
FINANCIAL
AND
FOR B A N K
DEREGULATION,
FINANCIAL
M E R G E R POLICY
INTERSTATE
SUPERMARKETS,
OF
BANKING,
by Stephen A.
Rhoades. February 1984. 8 pp.
T h e availability of this study will be announced in a forthcoming B U L L E T I N .
A76
138. ANTITRUST
LAWS,
JUSTICE
DEPARTMENT
GUIDE-
LINES, A N D THE L I M I T S OF C O N C E N T R A T I O N IN L O CAL B A N K I N G M A R K E T S ,
REPRINTS
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Most of the articles
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ARTICLES
do not exceed
12
pages.
by James Burke. June 1984.
14 pp.
1 3 9 . S O M E IMPLICATIONS OF F I N A N C I A L I N N O V A T I O N S IN
by Thomas D. Simpson and
Patrick M. Parkinson. August 1984. 20 pp.
THE U N I T E D
STATES,
1 4 0 . GEOGRAPHIC M A R K E T D E L I N E A T I O N : A R E V I E W OF
THE L I T E R A T U R E ,
1984. 38
by John
D.
Wolken. November
pp.
1 4 1 . A COMPARISON OF D I R E C T DEPOSIT A N D CHECK P A Y MENT COSTS,
by William Dudley. November
1984.
15 pp.
1 4 2 . MERGERS
AND
BANKS, 1 9 6 0 - 8 3 ,
1984.
30 pp.
ACQUISITIONS
by Stephen
A.
BY
COMMERCIAL
Rhoades. December
The Commercial Paper Market since the Mid-Seventies. 6/82.
Applying the Theory of Probable Future Competition. 9/82.
International Banking Facilities. 10/82.
Foreign Experience with Targets for Money Growth. 10/83.
Intervention in Foreign Exchange Markets: A Summary of
Ten Staff Studies. 11/83.
A Financial Perspective on Agriculture. 1/84.
U.S. International Transactions in 1983. 4/84.
Survey of Consumer Finances, 1983. 9/84.
Bank Lending to Developing Countries. 10/84.
Survey of Consumer Finances, 1983: A Second Report.
12/84.
A77
Index to Statistical Tables
References are to pages A3 through A68 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 19, 20, 25
Assets and liabilities (See also Foreigners)
Banks, by classes, 18-20
Domestic finance companies, 38
Federal Reserve Banks, 10
Financial institutions, 28
Foreign banks, U.S. branches and agencies, 22
Nonfinancial corporations, 37
Automobiles
Consumer installment credit, 41, 42
Production, 47, 48
BANKERS acceptances, 9, 24, 26
Bankers balances, 18-20 (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 36
Rates, 26
Branch banks, 22, 55
Business activity, nonfinancial, 45
Business expenditures on new plant and equipment, 38
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 18
Federal Reserve Banks, 10
Central banks, discount rates, 67
Certificates of deposit, 26
Commercial and industrial loans
Commercial banks, 16, 21, 25
Weekly reporting banks, 19-22
Commercial banks
Assets and liabilities, 18-20
Business loans, 25
Commercial and industrial loans, 16, 21, 22, 25
Consumer loans held, by type, and terms, 41, 42
Loans sold outright, 21
Nondeposit fund, 17
Number, by classes, 18
Real estate mortgages held, by holder and property, 40
Time and savings deposits, 3
Commercial paper, 24, 26, 38
Condition statements (See Assets and liabilities)
Construction, 45, 49
Consumer installment credit, 41, 42
Consumer prices, 45, 50
Consumption expenditures, 51, 52
Corporations
Profits and their distribution, 37
Security issues, 36, 65
Cost of living (See Consumer prices)
Credit unions, 28, 41 (See also Thrift institutions)
Currency and coin, 18
Currency in circulation, 4, 13
Customer credit, stock market, 27
DEBITS to deposit accounts, 15
Debt (See specific
types of debt or
Demand deposits
Adjusted, commercial banks, 15
Banks, by classes, 18-20, 22
securities)
Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 23
Turnover, 15
Depository institutions
Reserve requirements, 7
Reserves and related items, 3, 4, 5, 12
Deposits (See also specific
types)
Banks, by classes, 3, 18-20, 21, 22
Federal Reserve Banks, 4, 10
Turnover, 15
Discount rates at Reserve Banks and at foreign central
banks (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 37
EMPLOYMENT, 45
Eurodollars, 26
FARM mortgage loans, 40
Federal agency obligations, 4, 9, 10, 11, 33, 34
Federal credit agencies, 35
Federal finance
Debt subject to statutory limitation, and types and
ownership of gross debt, 32
Receipts and outlays, 30, 31
Treasury financing of surplus, or deficit, 30
Treasury operating balance, 30
Federal Financing Bank, 30, 35
Federal funds, 5, 17, 19, 20, 22, 26, 30
Federal Home Loan Banks, 35
Federal Home Loan Mortgage Corporation, 35, 39, 40
Federal Housing Administration, 35, 39, 40
Federal Land Banks, 40
Federal National Mortgage Association, 35, 39, 40
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 4, 10, 11, 32
Federal Reserve credit, 4, 5, 10, 11
Federal Reserve notes, 10
Federally sponsored credit agencies, 35
Finance companies
Assets and liabilities, 38
Business credit, 38
Loans, 19, 41, 42
Paper, 24, 26
Financial institutions
Loans to, 19, 20, 22
Selected assets and liabilities, 28
Float, 4
Flow of funds, 43, 44
Foreign banks, assets and liabilities of U.S. branches and
agencies, 22
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4, 10, 19, 20
Foreign exchange rates, 68
Foreign trade, 54
Foreigners
Claims on, 55, 57, 60, 61, 62, 64
Liabilities to, 20, 54, 55, 57, 58, 63, 65, 66
A78
GOLD
Certificate account, 10
Stock, 4, 54
Government National Mortgage Association, 35, 39, 40
Gross national product, 51
HOUSING, new and existing units, 49
INCOME, personal and national, 45. 51, 52
Industrial production, 45, 47
Installment loans, 41, 42
Insurance companies, 28, 32, 40
Interest rates
Bonds, 26
Business loans of banks, 25
Federal Reserve Banks, 6
Foreign central banks and foreign countries, 67
Money and capital markets, 26
Mortgages, 39
Prime rate, commercial banks, 24
Time and savings deposits, 8
International capital transactions of United States, 53-66
International organizations, 57, 58-60, 63-66
Inventories, 51
Investment companies, issues and assets, 37
Investments (See also specific
types)
Banks, by classes, 18, 19, 20, 28
Commercial banks, 3, 16, 18-20, 21, 40
Federal Reserve Banks, 10, 11
Financial institutions, 28, 40
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific
types)
Banks, by classes, 18-20
Commercial banks, 3, 16, 18-20, 21, 25
Federal Reserve Banks, 4, 5, 6, 10, 11
Financial institutions, 28, 40
Insured or guaranteed by United States, 39, 40
MANUFACTURING
Capacity utilization, 46
Production, 45, 48
Margin requirements, 27
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 5
Reserve requirements, 7
Mining production, 48
Mobile homes shipped, 49
Monetary and credit aggregates, 3, 12
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, 8, 28, 40, 41 (See also Thrift
institutions)
NATIONAL defense outlays, 31
National income, 51
Nontransaction balances, 3, 13, 19, 20, 21
OPEN market transactions, 9
PERSONAL income, 52
Prices
Consumer and producer, 45, 50
Stock market, 27
Prime rate, commercial banks, 24
Producer prices, 45, 50
Production, 45, 47
Profits, corporate, 37
REAL estate loans
Banks, by classes, 16, 19, 20, 40
Financial institutions, 28
Terms, yields, and activity, 39
Type of holder and property mortgaged, 40
Repurchase agreements, 5, 17, 19, 20, 22
Reserve requirements, 7
Reserves
Commercial banks, 18
Depository institutions, 3, 4, 5, 12
Federal Reserve Banks, 10
U.S. reserve assets, 54
Residential mortgage loans, 39
Retail credit and retail sales, 41, 42, 45
SAVING
Flow of funds, 43, 44
National income accounts, 51, 52
Savings and loan associations, 8, 28, 40, 41, 43 (See also
Thrift institutions)
Savings deposits (See Time and savings deposits)
Securities (See specific
types)
Federal and federally sponsored credit agencies, 35
Foreign transactions, 65
New issues, 36
Prices, 27
Special drawing rights, 4, 10, 53, 54
State and local governments
Deposits. 19, 20
Holdings of U.S. government securities, 32
New security issues, 36
Ownership of securities issued by, 19, 20, 28
Rates on securities, 26
Stock market, 27
Stocks (See also Securities)
New issues, 36
Prices, 27
Student Loan Marketing Association, 35
TAX receipts, federal, 31
Thrift institutions, 3 (See also Credit unions, Mutual
savings banks, and Savings and loan associations)
Time and savings deposits, 3, 8. 13, 17, 18, 21, 22 (See also
Transaction and Nontransaction balances)
Trade, foreign, 54
Transaction balances, 13, 19, 20
Treasury currency, Treasury cash, 4
Treasury deposits, 4, 10, 30
Treasury operating balance, 30
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 18, 19, 20
Treasury deposits at Reserve Banks, 4, 10, 30
U.S. government securities
Bank holdings, 17, 18-20, 22, 32
Dealer transactions, positions, and financing, 34
Federal Reserve Bank holdings, 4, 10, 11, 32
Foreign and international holdings and transactions, 10,
32, 66
Open market transactions, 9
Outstanding, by type and holder, 28, 32
Rates, 26
U.S. international transactions, 53-66
Utilities, production, 48
VETERANS Administration, 39, 40
WEEKLY reporting banks, 19-22
Wholesale (producer) prices, 45, 50
YIELDS (See Interest rates)
A79
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK, Chairman
branch, or facility
Zip
Deputy Chairman
President
First Vice President
BOSTON*
02106
Joseph A. Baute
Thomas I. Atkins
Frank E. Morris
Robert W. Eisenmenger
NEW YORK*
10045
John Brademas
Clifton R. Wharton, Jr.
(t)
E. Gerald Corrigan
Thomas M. Timlen
Buffalo
14240
John T. Keane
PHILADELPHIA
19105
Robert M. Landis
Nevius M. Curtis
Edward G. Boehne
Richard L. Smoot
CLEVELAND*
44101
William H. Knoell
E. Mandell de Windt
(t)
(t)
Karen N. Horn
William H. Hendricks
Leroy T. Canoles, Jr.
Robert A. Georgine
(t)
(t)
Robert P. Black
Jimmie R. Monhollon
John H. Weitnauer, Jr.
Bradley Currey, Jr.
(t)
(t)
(t)
(+)
(t)
Robert P. Forrestal
Jack Guynn
Stanton R. Cook
Robert J. Day
(t)
Silas Keehn
Daniel M. Doyle
W.L. Hadley Griffin
Mary P. Holt
(t)
(t)
(t)
Vacancy
Joseph P. Garbarini
William G. Phillips
John B. Davis, Jr.
Gene J. Etchart
Vacancy
Thomas E. Gainor
Irvine O. Hockaday, Jr.
Robert G. Lueder
James E. Nielson
Patience Latting
Kenneth L. Morrison
Roger Guffey
Henry R. Czerwinski
Robert D. Rogers
Bobby R. Inman
(t)
(t)
(t)
Robert H. Boykin
William H. Wallace
Alan C. Furth
Fred W. Andrew
(t)
(t)
(t)
(t)
John J. Balles
Richard T. Griffith
Cincinnati
Pittsburgh
45201
15230
RICHMOND*
23219
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records
Center
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30301
35283
32231
33152
37203
70161
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
Charles A. Cerino
Harold J. Swart
Robert D. McTeer, Jr.
Albert D. Tinkelenberg
John G. Stoides
22701
CHICAGO*
Helena
Vice President
in charge of branch
59601
64198
80217
73125
68102
75222
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Fred R. Herr
James D. Hawkins
Patrick K. Barron
Jeffrey J. Wells
Henry H. Bourgaux
Roby L. Sloan
John F. Breen
James E. Conrad
Paul I. Black, Jr.
Robert F. McNellis
Wayne W. Martin
William G. Evans
Robert D. Hamilton
Joel L. Koonce, Jr.
J.Z. Rowe
Thomas H. Robertson
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.
+Branch chairmanships had not been determined at the time the BULLETIN went to press.
A80
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
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Federal Reserve Bank Cities
Boundaries of Federal Reserve Branch
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Federal Reserve Branch Cities
Federal Reserve Bank Facility
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Board of Governors of the Federal Reserve
System
M
Publications of Interest
FEDERAL RESERVE
PUBLICATIONS
CONSUMER
CREDIT
The Federal Reserve Board publishes a series of
pamphlets covering individual credit laws and topics,
as pictured below. The series includes such subjects as
how the Equal Credit Opportunity Act protects women against discrimination in their credit dealings, how
to use a credit card, and how to use Truth in Lending
information to compare credit costs.
The Board also publishes the Consumer Handbook
to Credit Protection Laws, a complete guide to con-
sumer credit protections. This 44-page booklet explains how to use the credit laws to shop for credit,
apply for it, keep up credit ratings, and complain about
an unfair deal.
Protections offered by the Electronic Fund Transfer
Act are explained in Alice in Debitland. This booklet
offers tips for those using the new "paperless" systems for transferring money.
Copies of consumer publications are available free
of charge from Publications Services, Mail Stop 138,
Board of Governors of the Federal Reserve System,
Washington, D.C. 20551. Multiple copies for classroom use are also available free of charge.
The Equal Credit
Opportunity Act
and . . .
TRUTH
What
Thithln
Lending
Means
To You
IF 1
YOU USE A
CREDIT
CARD
N L E C I N G
Publications of Interest
FEDERAL RESERVE REGULATORY SERVICE
To promote public understanding of its regulatory
functions, the Board publishes the Federal Reserve
Regulatory Service, a three-volume looseleaf service
containing all Board regulations and related statutes,
interpretations, policy statements, rulings, and staff
opinions. For those with a more specialized interest in
the Board's regulations, parts of this service are
published separately as handbooks pertaining to monetary policy, securities credit, and consumer affairs.
These publications are designed to help those who
must frequently refer to the Board's regulatory materials. They are updated at least monthly, and each
contains conversion tables, citation indexes, and a
subject index.
The Monetary Policy and Reserve Requirements
Handbook contains Regulations A, D, and Q plus
related materials. For convenient reference, it also
contains the rules of the Depository Institutions
Deregulation Committee.
The Securities Credit Transactions Handbook contains Regulations G, T, U, and X, dealing with extensions of credit for the purchase of securities, together
with all related statutes, Board interpretations, rulings, and staff opinions. Also included is the Board's
list of OTC margin stocks.
The Consumer and Community Affairs Handbook
contains Regulations B, C, E, M, Z, AA, and BB and
associated materials.
For domestic subscribers, the annual rate is $175 for
the Federal Reserve Regulatory Service and $60 for
each handbook. For subscribers outside the United
States, the price including additional air mail costs is
$225 for the Service and $75 for each Handbook. All
subscription requests must be accompanied by a check
or money order payable to Board of Governors of the
Federal Reserve System. Orders should be addressed
to Publications Services, Mail Stop 138, Federal Reserve Board, 20th Street and Constitution Avenue,
N.W., Washington, D.C. 20551.
@FedFRASER