Full text of Federal Reserve Bulletin : February 1986
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VOLUME 72 •
NUMBER 2 •
h.>.
FEBRUARY
1986
FEDERAL RESERVE
'V 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 supervised by Linda C. Kyles.
Table of Contents
87 THE USE OF CASH AND
ACCOUNTS BY AMERICAN
TRANSACTION
FAMILIES
This article describes the Survey of Currency and Transaction Account Usage and
presents preliminary findings on the distribution of payment methods by selected
demographic groups and of total payments
by the means of payment used; it also
discusses survey evidence bearing on cash
use, its rate of circulation, and demographic
determinants of cash holdings.
109 TREASURY AND FEDERAL
RESERVE
FOREIGN EXCHANGE
OPERATIONS.INTERIM REPORT
For the period from August through October 1985, the dollar continued the decline
that had begun in early 1985, against a
background of spreading perceptions that
U.S. economic activity was slowing while
activity abroad was picking up.
113 INDUSTRIAL
PRODUCTION
Industrial production rose an estimated 0.4
percent in November 1985.
115 STATEMENTS
TO
CONGRESS
Paul A. Volcker, Chairman, Board of Governors, discusses the operational problems
experienced by the Bank of New York on
November 21, 1985, resulting from a failure
of computer system software, and the response of the Federal Reserve Bank of New
York and says that the effects of the problem were well contained in terms of market
performance and risk, before the Subcommittee on Domestic Monetary Policy of the
House Committee on Banking, Finance and
Urban Affairs, December 12, 1985.
117 E. Gerald Corrigan, President, Federal Reserve Bank of New York, testifies on the
circumstances surrounding the problem at
Bank of New York on November 21, discusses several steps that can provide assurance that similar episodes do not recur, and
says that, in the long term, opportunities
must be found to alter market practices and
incentives in ways that can strengthen reliability and reduce risk while preserving the
liquidity and efficiency of the market, before the Subcommittee on Domestic Monetary Policy of the House Committee on
Banking, Finance and Urban Affairs, December 12, 1985.
125 William Taylor, Director of the Board's
Division of Banking Supervision and Regulation, discusses the possible impact of
faulty and fraudulent real estate appraisals
on federally insured depository institutions
and says that the federal banking agencies
have developed guidelines that will aid in
formalizing and promoting uniformity in the
procedures for classifying problem real estate loans, including Federal Reserve plans
to intensify its scrutiny of loan portfolios,
before the Subcommittee on Commerce,
Consumer and Monetary Affairs of the
House Committee on Government Operations, December 12, 1985.
128 RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET
COMMITTEE
At its meeting on November 4-5, 1985, the
Committee adopted a directive that called
for maintaining about the current degree of
reserve restraint. Given the sensitivity of
economic and financial conditions and exchange market developments, it was understood that policy would be implemented
with some added degree of day-to-day flexibility. The members expected such an approach to policy implementation to be consistent with growth of both M2 and M3 at an
annual rate of about 6 percent for the period
from September to December. Over the
same period, Ml was also expected to expand at an annual rate of around 6 percent,
but in light of its very rapid growth in the
third quarter, slower growth in this aggregate would be acceptable. Somewhat greater reserve restraint might, and somewhat
lesser restraint would, be acceptable depending on the behavior of the monetary
aggregates over the intermeeting period and
taking account of appraisals of the strength
of the business expansion, the performance
of the dollar on foreign exchange markets,
progress against inflation, and conditions in
domestic and international credit markets.
The members agreed that the intermeeting
range for the federal funds rate, which
provides a mechanism for initiating consultation of the Committee when its boundaries are persistently exceeded, should be
left unchanged at 6 to 10 percent.
134
Proposed changes to the official staff commentary on Regulations E (Electronic Fund
Transfers) and Z (Truth in Lending).
Changes in Board staff.
Admission of five state banks to membership in the Federal Reserve System.
137 LEGAL
DEVELOPMENTS
Various bank holding company, bank service corporation, and bank merger orders;
and pending cases.
AI FINANCIAL AND BUSINESS
STATISTICS
A3 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A53 International Statistics
A69 GUIDE TO TABULAR PRESENTATION,
STATISTICAL RELEASES, AND SPECIAL
TABLES
ANNOUNCEMENTS
Amendment to Regulation D involving
changes in reserve requirements.
Proposed amendments to Regulations D
and Q to preserve the current treatment of
MMDAs and to maintain penalties, in certain circumstances, for early withdrawal of
time deposits.
Proposed interpretation of Regulation G
with regard to debt securities issued by a
shell corporation that is used as an acquisition vehicle.
A70 BOARD OF GOVERNORS AND STAFF
A72 FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISORY COUNCILS
A74 FEDERAL RESERVE
PUBLICATIONS
BOARD
All INDEX TO STATISTICAL
TABLES
A19 FEDERAL RESERVE BANKS,
AND OFFICES
BRANCHES,
A80 MAP OF FEDERAL RESERVE
SYSTEM
The Use of Cash and Transaction Accounts
by American Families
This article was prepared by Robert B. Avery,
Gregory E. Elliehausen, Arthur B. Kennickell,
and Paul A. Spindt of the Board's Division of
Research and Statistics, with the assistance of
Garland DeMarco and Julia Springer.
The payments mechanism plays a central role in
supporting economic activity in the United
States. The means of payment in the U.S. monetary system are principally cash—currency and
coin—and several categories of checkable deposits at financial institutions. Although very good
quantitative data are available on these means of
payment, major gaps exist in the knowledge of
how these quantities are acquired and used in the
economy. Also, the role of credit cards in consumer expenditures and their relationship to other means of payment is not well understood.
Recent changes in technology and regulation
have afforded households significant opportunities to change the methods they use to pay for
expenditures. For example, money market deposit accounts with market interest rates and
limited check-writing features did not exist until
December 1982. The use of electronic payments
methods and automated teller machines also has
grown very rapidly in the past five years. Understanding these changes is important for several
reasons. First, the linkages between monetary
aggregates and the overall level of economic
activity are key factors in determining the weight
that should be placed on these aggregates in the
conduct of policy. These linkages are likely to be
sensitive to the methods households use for
making payments. Second, despite a decade of
financial deregulation, some restrictions still remain on accounts at depository institutions. Determining the effects of these restrictions reN O T E . The data from the Survey of Currency and Transaction Account Usage are available on request from the National Technical Information Service, 5285 Port Royal Rd.,
Springfield, Virginia 22161.
quires knowledge of how account holders use
accounts and of how their behavior might be
affected by further regulatory changes.
The Board of Governors of the Federal Reserve System commissioned the Survey of Currency and Transaction Account Usage to understand better how cash and other means of
payment are acquired and used. The survey,
which was conducted between May and August
1984, focused on the household sector of the
U.S. economy. It collected information on the
payment practices of families, on the rate of
expenditure out of deposit accounts with transaction features, on the use of credit cards, and on
the acquisition and patterns of use of cash.
In this article we first describe the survey
design and initial preparation of the raw data.
Next we present findings on the distribution of
expenditures of selected demographic groups by
method of payment and on the distribution of
total payments by the means of payment used.
Then we discuss survey evidence bearing on the
use of cash, its rate of circulation, and the
demographic determinants of cash holdings. Finally, we summarize our findings.
THE
SURVEY
The questionnaire for the Survey of Currency
and Transaction Account Usage contains two
principal lines of inquiry. The first documents
activity for the preceding month in the main
checking account of families and in their other
checking, money market, and savings accounts.
The questions request information on (1) the
number and dollar amount of deposits, (2) the
number of withdrawals, (3) the number and dollar amount of cash deposits and withdrawals, (4)
the dollar amount of transfers between accounts,
and (5) the dollar amount of investments and
large expenditures from accounts. Respondents
88
Federal Reserve Bulletin • February 1986
were encouraged to consult records. Answers to
these questions are used to determine the monthly cash use of families and their rates of expenditure out of accounts with transaction features.
The second line of inquiry focuses on the cash
inventories of individual respondents. For the
last time they obtained cash and for their typical
cash acquisition patterns, respondents were
asked (1) the dollar amount of cash obtained, (2)
the balance on hand just before the acquisition,
and (3) the time between cash acquisitions. Respondents were also asked about the rate at
which they spent cash since the last time it was
acquired. The survey, which elicited information
on several standard demographic characteristics
of the families, also asked several questions
about other types of transactions—such as credit
card use and electronic fund transfer services.
Between May and August 1984 a total of 1,946
telephone interviews were obtained from a randomly selected sample of 2,500 families residing
in the United States. The respondent was either
the head of the family or a financially knowledgeable spouse. Appendix A gives a brief description of the survey sample design. The selection
and interviewing of the respondents and the
coding and preliminary editing of the data were
performed by the Survey Research Center at the
University of Michigan. The results tabulated
here, which are based on an edited and imputed
version of the data using sampling weights described in appendix B, are primarily one-way
1. Distribution of total expenditures of families with selected characteristics, by method of payment, 1984
Family characteristic
Cash'
Proportion of
Mean
Mean
all fammonthly
share of
ilies (per- expendi- total excent)
penditure (dollars)
tures
Check 2
Credit card
Mean
Families
monthly
using this expendimethod
(dol(percent) ture
lars)
Mean
share of
total expenditures
Mean
Families
monthly
using this expendimethod
ture (dol(percent)
lars)
Mean
share of
total expenditures
Income (dollars)
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
24
23
19
21
13
210
408
541
663
847
53
40
32
29
18
17
45
59
72
88
20
78
154
210
618
3
6
6
8
10
62
80
92
93
96
423
885
1,582
2,418
5,355
44
54
61
63
72
Age of head (years)
Less than 35
35-44
45-54
55-64
65 or more
30
18
16
18
17
486
569
649
465
313
40
31
37
38
34
53
62
59
51
33
159
218
216
211
85
6
7
7
8
4
80
89
83
80
84
1,383
2,454
2,368
1,823
1,284
54
63
56
54
62
Race or national origin of head
Caucasian 3
Nonwhite or Hispanic
82
18
512
414
32
55
56
34
198
73
7
4
88
60
2,002
875
61
41
Education of head
Less than 12 years
High school diploma
Some college
College degree
21
33
19
27
397
473
453
621
53
40
30
24
22
44
59
79
51
83
159
391
3
4
6
10
63
81
91
94
777
1,386
1,920
2,986
44
56
64
65
Location
Urban
Suburban
Rural
53
23
24
457
646
432
40
30
36
49
71
40
145
332
92
6
10
4
79
89
84
1,558
2,4%
1,663
55
60
60
15
23
219
386
44
38
24
50
44
155
4
7
70
79
778
1,384
53
54
10
22
29
354
640
662
42
37
29
38
59
66
93
199
269
6
6
7
77
84
93
1,228
2,202
2,545
52
57
64
100
494
36
52
175
6
83
1,798
57
Marital and work status of head
Unmarried
In labor force
Not in labor force
Married
Neither spouse in labor force
One spouse in labor force
Both spouses in labor force
All families
1. Cash includes money orders and is used by 100 percent of each
family group.
2. Checks include personal checks, bank checks, automatic payments, and electronic payments.
3. Here and in succeeding tables, Hispanics are counted separately
from other Caucasians.
The Use of Cash and Transaction Accounts by American Families
classifications; they should be viewed as preliminary to a more formal, multivariate analysis (see
note 2 in appendix B).
USE OF TRANSACTION
BY FAMILIES
89
mation was collected to estimate the distribution
of family expenditures during the month preceding the survey among three payment methods:
(1) cash and money orders, (2) credit cards, and
(3) checks. Checks cover all noncurrency withdrawals from depository institutions and include
personal checks, bank checks, automatic payments, and electronic payments.
Total monthly expenditures for each household using each payment method were calculated
in the following manner. For each account re-
ACCOUNTS
The survey provides a rich source from which to
address the general payments behavior of each
family surveyed. In particular, sufficient infor-
2. Monthly use of credit cards and main checking accounts of families with selected characteristics, 19841
Credit cards
Family characteristic
Families
owning
this
method
(percent)
Owners
Mean
using this number
of
method
2
charges
(percent)
Main checking account
Mean
size of
charge
(dollars)2
Families
owning
this
method
(percent)
Owners
using this
method
(percent)
Mean
turnover
rate 3
Mean
number
of
checks 2
Mean
size of
check
(dollars)2
Mean
share of
total expenditures
(percent) 2
Income (dollars)
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
32
67
79
87
98
53
67
75
82
90
4
5
6
7
13
36
49
63
52
69
67
85
94
%
99
91
94
97
96
95
3.1
6.3
4.6
4.7
6.6
10
13
16
18
24
116
120
138
166
247
48
64
59
58
58
Age of head (years)
Less than 35
35-44
45-54
55-64
65 or more
68
78
75
70
54
78
79
79
72
62
7
8
8
7
6
52
50
68
56
59
83
90
86
83
92
94
98
96
94
90
6.0
7.8
5.0
3.8
1.8
17
20
18
15
11
129
147
156
160
188
61
62
56
60
69
Race or national origin
of respondent
Caucasian
Nonwhite or Hispanic...
73
49
76
69
8
4
57
47
91
65
95
89
5.2
3.8
17
12
150
174
61
65
Education of head
Less than 12 years
High school diploma
Some college
College degree
43
62
77
91
52
70
77
87
4
5
7
10
52
51
49
64
69
86
92
97
92
93
97
95
3.6
5.2
4.3
6.0
10
15
17
20
154
156
131
163
65
62
62
59
Location
Urban
Suburban
Rural
65
85
62
75
83
64
7
9
5
51
62
58
83
93
88
94
95
95
5.2
5.4
4.2
15
18
16
162
145
140
62
57
64
40
65
59
78
4
7
45
55
77
83
89
93
1.7
4.6
10
15
148
123
72
63
62
60
6
54
81
95
2.9
12
170
62
Marital and work status
of head
Unmarried
In labor force
Not in labor force
Married
Neither spouse in labor
force
One spouse in labor
force
Both spouses in labor
force
77
77
8
59
83
80
8
57
All families
69
75
7
56
1. Some of the numbers in this table and in table 3 are based on data
from only a small number of families. In these cases the averages are
especially sensitive to extraordinary expenditures. For example, in
table 3 the extremely large value of the average size of checks for the
savings account of families with income between $30,000 and $50,000
can be traced to one family, which purchased an automobile for
;
89
95
6.5
18
140
58
94
94
6.3
19
178
59
86
94
5.0
16
153
61
•
$46,000. The median value, particularly for check size, would
probably be more indicative of typical behavior but could not be
computed because of the way the data were constructed.
2. For those using the payment method.
3. Here and in succeeding tables, the ratio of account expenditures
to the average account balance for all account owners.
90
Federal Reserve Bulletin • February 1986
3. Monthly use of other checking accounts, money market accounts, and savings accounts by families with
selected characteristics, 1984'
Other checking accounts
Family characteristic
Families
owning this
method
(percent)
Owners using
this method
Turnover
rate 2
1.3
Income (dollars)
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
25
45
46
40
66
60
67
Age of head (years)
Less than 35
35-44
45-54
55-64
65 or more
17
22
26
19
10
Race or national origin of head
Caucasian
Nonwhite or Hispanic
Average
number of
checks 3
Average size
of check
(dollars)3
Average share
of total
expenditures
(percent) 3
2.7
184
167
216
297
436
46
26
28
33
26
57
63
72
51
50
2.1
2.6
2.5
.9
.7
288
300
360
276
299
30
28
25
40
30
21
7
61
43
1.8
3.5
311
276
29
37
Education of head
Less than 12 years
High school diploma
Some college
College degree
6
15
20
32
42
56
69
61
.6
2.0
2.1
2.0
200
380
281
300
33
36
35
23
Location
Urban
Suburban
Rural
16
24
18
60
66
52
1.7
3.1
1.1
279
311
379
32
27
29
5
11
21
1.1
1.5
2.0
Marital and work status of head
Unmarried
In labor force
Not in labor force
Married
Neither spouse in labor force .
One spouse in labor force
Both spouses in labor f o r c e . . .
15
42
52
.2
2.0
144
477
26
33
12
23
27
38
63
67
.7
1.6
2.6
200
277
297
28
28
30
All families
19
60
2.3
310
30
Money market accounts
Family characteristic
Income (dollars)
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
14
24
28
35
59
12
9
29
18
27
177
1,311
755
3,076
2,303
48
47
27
46
46
Age of head (years)
Less than 35
35-44
45-54
55-64
65 or more
18
29
33
41
32
20
19
22
20
20
1,387
1,746
2,307
2,424
1,045
46
44
41
39
39
Race or national origin of head
Caucasian
Nonwhite or hispanic
32
14
21
12
1,872
1,219
42
29
Education of head
Less than 12 years
High school diploma
Some college
College degree
15
22
29
48
2,383
1,507
1,361
2,052
27
53
40
39
13
17
19
24
The Use of Cash and Transaction Accounts by American Families
91
3. Continued
Money market accounts—continued
Family characteristic
Location
Urban
Suburban
Rural
Marital and work status of head
Unmarried
In labor force
Not in labor force
Married
Neither spouse in labor force .
One spouse in labor force
Both spouses in labor f o r c e . . .
All families
Families
owning this
method
(percent)
Owners using
this method
Turnover
rate 2
Average
number of
checks 3
Average size
of check
(dollars) 3
Average share
of total
expenditures
(percent) 3
25
41
25
20
21
1,273
2,486
1,992
40
41
47
25
26
19
18
1,408
714
33
44
30
32
31
17
22
21
2,564
2,062
2,255
53
34
46
29
20
1,837
41
18
Savings accounts
Family characteristic
Income (dollars)
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
34
49
62
70
68
218
270
365
1,9%
715
34
Age of head (years)
Less than 35
35-44
45-54
55-64
65 or more
59
64
58
44
44
476
645
1,702
233
383
24
21
19
24
23
Race or national origin of head
Caucasian
Nonwhite or Hispanic
58
40
877
285
22
22
Education of head
Less than 12 years
High school diploma
Some college
College degree
32
54
60
68
337
380
2,495
554
31
Location
Urban
Suburban
Rural
53
61
51
327
1,918
405
17
30
22
Marital and work status of head
Unmarried
In labor force
Not in labor force
Married
Neither spouse in labor force .
One spouse in labor force
Both spouses in labor f o r c e . . .
All families
1. See table 2, note 1.
2. For those owning the payment method.
3. For those using the payment method.
20
19
27
17
21
25
18
33
54
13
14
.0
.1
3
2
265
421
30
22
41
59
68
4
10
14
.0
.5
.1
2
4
2
176
2,228
445
12
28
18
54
12
.3
2
779
22
92
Federal Reserve Bulletin • February 1986
ported at a financial institution, the current balance plus cash withdrawals was subtracted from
the balance reported for the previous month plus
deposits (including interest) to yield total check
withdrawals. Reported interaccount transfers,
investments, and purchases of houses were subtracted from this total. These figures were
summed over all deposit accounts to yield a
measure of check withdrawals that conforms
with the national income accounts definition of
current expenditure. Note that this definition is
broader than that of current consumption in that
it also includes purchases of nonfinal goods such
as used cars and lottery tickets.
Cash expenditures were computed in a similar
manner by summing cash withdrawals (including
checks for cash) for all accounts and netting out
cash deposited to accounts and cash used for
investments or purchases of houses. Cash obtained from other sources and used for expenditures was sometimes estimated from information
given in the section on currency use; it was
added to the total for cash withdrawals. These
procedures technically produced an estimate of
each family's net withdrawals of cash during the
month, which would represent the expenditures
with cash only if the family's cash reserves
remained the same and all new cash were used
for spending. In fact, family currency reserves
probably change over time, and some cash is
used to purchase alternative payment methods,
such as money orders or travelers checks.
Credit card expenditures were computed by
summing monthly charges reported on all cards
held by any family member. Because most credit
card bills are ultimately paid by check, the
measurement of credit card expenditures is likely
to represent double counting.
General Payment
Patterns
The data indicate that all families make some
cash payments. In terms of dollars, however,
checks are the main means of payment for the
sample as a whole and for all but three demographic subgroups: families with incomes of less
than $10,000, those in which the head has an
education of less than 12 years, and nonwhite or
Hispanic families (table 1). These three groups
each use cash as the primary means of payment.
Although the use of all three methods rises in
absolute terms with income, education, and the
number of earners in the family, clearly households substitute credit cards and checks for cash
as income rises. Note that the mean monthly
expenditure and the mean percent of total expenditures in table 1 exhibit very different patterns
across payment methods. This result is explained
by the fact that a significant number of families
do not use credit cards and checks, thus skewing
the percentages and distributions toward zero.
The typical household uses all three methods of
payment, but 14 percent use cash exclusively,
and about 36 percent of these families use money
orders for 41 percent of their expenditures (not
shown in the table).
Further insight into payments behavior can be
obtained by examining disaggregated data on
account use. Several different measures of activity computed for credit cards and for the family's
main checking account are shown in table 2;
activity in secondary depository accounts, including other checking, money market, and savings accounts, is shown in table 3. As might be
expected, these data show great variation in the
use of different accounts. Virtually all families
with a main checking account use it, whereas the
proportion of families using their other checking,
money market, and savings accounts during the
sample month was only 60, 20, and 12 percent
respectively. When these other accounts are
used, however, they typically are used for large
expenditures that constitute a significant proportion of the family's expenditures. The infrequent
use of such accounts is consistent with the low
turnover rate shown for each of them. Other
checking accounts, for example, have a turnover
rate less than one-half that of the main checking
account.
A comparison of account use across demographic groups also reveals several differences.
Low-income, less-educated, and nonwhite or
Hispanic families are significantly less likely than
other families to have secondary accounts or to
use them when they have them. When families in
such groups do use secondary accounts, however, they appear to use them for roughly the same
proportion of their total expenditures as other
households. Activity in both main and secondary
The Use of Cash and Transaction Accounts by American Families
checking accounts bears a relationship to income
that is worth noting. Both the number of checks
and the average size of checks increase at roughly the same rate in response to income. Use of
money market and savings accounts shows a
much more erratic relationship to income. Families headed by older individuals or by persons
outside the labor force appear to use their secondary accounts in roughly the same fashion as
other families, but they have much lower turnover rates. This finding suggests that these families tend to carry higher account balances per
dollar of expenditure than other families. Somewhat surprisingly, the number of workers in
married families appears to bear little relationship to account activity. The only exception is
reduced use of other checking accounts for families in which neither spouse works.
Credit card use shows patterns similar to those
for depository institution accounts. Low-income, less-educated, older, rural, and nonwhite
or Hispanic families are less likely to have credit
cards or to use them when they do. As in the case
of checking account use, the number and average
dollar size of credit card transactions rise roughly in tandem with income. However, despite the
fact that credit cards are widely used by virtually
every group, they account for a relatively small
proportion of total expenditures.
Account
Payment
Characteristics
Patterns
and
The results just presented may in part reflect
differences in transaction costs or in use of
alternative methods of payment for various demographic groups. For example, if payment of
checking account fees based on the number of
checks written is inversely related to income,
then the greater reliance on cash by lowerincome groups may be explained by their attempt
to minimize the cost of making payments. Or the
high proportion of cash expenditures in lowerincome groups may simply be caused by the
smaller proportion of these groups that own
checking accounts. To account for such possibilities, we examined the payment practices of
families having different combinations of payment methods, the terms on their main checking
93
account, and their use of automated teller machines.
As mentioned, exclusive reliance on cash as a
method of payment is found primarily among
lower-income families, but both checking accounts and credit cards are widely distributed
among such families: two-fifths of the lowestincome group have checking accounts, and about
one-fourth of that group have both checking
accounts and credit cards (table 4).
For low-income families with checking accounts, the proportion of total expenditures
made with cash does not differ significantly from
that for middle-income families (table 5). Although the volume of check and credit-card
expenditures among low-income families is relatively low, the distribution of their expenditures
among the different methods of payment is similar to that of middle-income families. Only in the
highest-income group does the proportion of expenditures made with cash decline significantly.
Table 5 also shows that the proportion of
expenditures from accounts other than the main
checking account increases with income. In contrast, although the percentage of families using
credit cards rises with income, the share of total
expenditures made with credit cards is nearly
constant across income groups.
The survey obtained information on the payment of interest and the fees charged on the main
checking accounts of families (table 6). The proportion of families whose main checking account
4. Distribution of families with selected
characteristics, by method of payment, 1984
Percent
Family characteristic
Cash
Cash
and
check
Cash,
check,
and
credit
card
Total
Income (dollars)
Less than 10,000 . . . .
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
33
15
6
4
1
41
21
18
10
2
26
63
76
86
97
100
100
100
100
100
Age of head (years)
Less than 35
35-44
45-54
55-64
65 or more
17
10
14
17
8
19
15
14
18
38
65
75
72
66
53
100
100
100
100
100
All families
14
21
66
100
94
Federal Reserve Bulletin • February 1986
5. Distribution of total expenditures of families with selected characteristics, by available selected methods of
payment, 1984
Percent
Checking and other accounts, no
credit card
Family characteristic
Checking and other accounts and credit card
Cash
Main
checking
account
Other
accounts 1
Cash
Main
checking
account
Other
accounts 1
Income (dollars)
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
24
31
32
16
12
71
66
61
67
88
5
3
7
17
0
23
24
21
20
12
64
60
55
51
55
6
9
16
22
24
7
7
8
7
9
Age of head (years)
Less than 35
35-44
45-54
55-64
65 or more
33
26
23
20
20
61
69
73
60
56
6
5
4
20
20
20
16
18
17
17
56
58
50
52
58
15
19
25
21
18
9
7
7
10
7
24
69
7
17
55
20
All families
Credit
card 2
|
8
1. Other accounts include other checking accounts, money market
deposit accounts, money market mutual fund accounts, and savings
accounts.
2. Average for families making credit card charges in the month
preceding the survey.
pays interest rises from 30 percent in the lowestincome group to 44 percent in the highest-income
group. The proportion of families that do not pay
fees on their main checking account, however,
does not appear to be related to income except
among those families earning $50,000 or more,
for whom the proportion is markedly higher.
Families headed by individuals aged 65 years or
more are more likely than other families to have
main checking accounts that pay interest and are
less likely than other families to pay fees on
those accounts.
The distribution of total expenditures of families with main checking accounts that pay interest is similar to that for families with regular main
checking accounts (not shown in the tables).
Families that normally pay checking account
fees based on the number of checks written pay
only a slightly higher share of expenditures with
cash than families that normally do not pay fees.
This result, however, can be attributed primarily
to relatively greater cash expenditures in one
income group ($10,000-$ 19,999).
About 42 percent of all families have cards for
Distribution of checking account holders with selected characteristics, by type of fee on main checking
account, and proportion of such families whose main checking account pays interest, 1984
Percent
Usually pays a fee
Family characteristic
Does not
usually pay
a fee
Fee depends
on account
balance
Income dollars
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
61
58
53
57
72
Age of head (years)
Less than 35
35-44
45-54
55-64
65 or more
44
47
54
76
86
18
AO checking account holders .
59
14
Fee depends
on number
of checks
Fee depends
on balance
and number
of checks
14
9
12
8
9
10
10
7
11
3
16
18
7
5
Fee depends
on other
factors
Account
pays
interest
30
38
39
39
44
11
14
6
5
1
39
34
40
38
40
38
The Use of Cash and Transaction Accounts by American Families
95
7. Proportion of families with selected characteristics that own an ATM card and their frequency of cash
withdrawals with the card, 1984
Family characteristic
Families
owning
an ATM
card
(percent)
Marital status of
respondent
Married
Single male
Single female
42
43
32
Income (dollars)
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
19
31
40
52
65
Age of head (years)
Less than 35
35-44
45-54
55-64
65 or more
Education of head
Less than 12 years
High school diploma
Some college
College degree
Mean
Family characteristic
Median
Families
owning
an ATM
card
(percent)
Work status of head
Working
Not working
47
22
Work status of spouses
One spouse working
Both spouses working
40
49
How head is paid2
Check
Cash
Automatic transfer
Other
43
36
70
40
48
47
44
34
21
How family is paid3
Check 4
Cash 3
Automatic transfer 6
Other
42
28
68
36
15
33
50
58
Method of deposit of
social security
check7
Check directly deposited .
Check not directly
deposited
Race or national origin of
head
Caucasian
Nonwhite or Hispanic
43
28
Location
Urban
Suburban
Rural
39
56
28
1.
2.
3.
4.
Monthly number of
cash withdrawals
with ATM card 1
Monthly number of
cash withdrawals
with ATM card 1
Mean
Median
30
17
Family holdings of credit
cards
No credit cards
One or more credit cards .
26
47
All families
42
For owners of ATM cards.
For employed family heads.
For couples with at least one employed member.
Neither member of couple paid in cash or by automatic transfer.
5. At least one member of couple paid in cash.
6. At least one member of couple paid by automatic transfer and
neither member paid in cash.
7. For families receiving social security income.
automated teller machines (ATMs) (table 7).
Ownership of ATM cards is positively related to
income and higher levels of education and inversely related to age. Single females, nonwhites
or Hispanics, and retired heads of families are
significantly less likely than other groups to have
ATM cards. Suburban families and families
whose paychecks or social security checks are
deposited automatically are more likely to have
ATM cards, possibly an indication of greater
financial sophistication.
Nearly half of families with checking accounts
have ATM cards, but as shown in table 8, only
about 30 percent of these families use them. Use
of automated teller machines is also positively
related to income and negatively related to age.
Families that use ATMs appear to make a somewhat greater proportion of their expenditures
with cash, especially families that use ATMs one
to three times a month. Particularly noteworthy
is the greater use of cash by families with incomes of $50,000 or more that use ATMs one to
three times a month: these families make 17
percent of their expenditures with cash, whereas
families that do not use ATMs or that use ATMs
more frequently make only 11 percent of their
expenditures with cash.
CASH ACQUISITION
AND
USE
Cash, which includes currency and coin, is usually ill-suited for transactions that involve very
96
Federal Reserve Bulletin • February 1986
cash is costly (interest income is forgone, and
there are security risks), individuals have an
incentive to hold a relatively small average supply that is replenished frequently. On the other
hand, because cash acquisition is costly ("shoeleather" costs are incurred, and fees may be
large sums of money or for which payment at a
remote location is required. In other cases, however, cash is usually a highly suitable means of
payment. To use cash, one must maintain an
inventory of it that one replenishes as payments
are made. Because maintaining a large supply of
8. Distribution and use of payment methods of checking account holders with selected characteristics, by use
of ATMs, 1984
Percent
Has card but does not use ATMs
Family characteristic
Does not
have
card
Share of total expenditures
Proportion of
checking
account
holders
Cash
Main
checking
account
Other
accounts
Credit
cards
Income (dollars)
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
72
62
57
46
34
13
14
15
21
26
22
19
20
17
11
64
67
56
48
53
9
4
16
29
28
5
10
8
6
8
Age of head (years)
Less than 35
35-44
45-54
55-64
65 or more
44
50
50
63
76
13
14
24
21
18
16
16
16
12
13
56
53
50
46
67
21
22
26
35
13
7
9
8
7
7
All checking account holders
55
18
15
54
23
8
Uses ATMs fewer than four times per month
Family characteristic
Proportion of
checking
account
holders
Share of total expenditures
Cash
Main
checking
account
Income (dollars)
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
33
34
22
20
17
62
56
50
61
56
Age of head (years)
Less than 35
35-44
45-54
55-64
65 or more
28
18
18
18
27
57
63
49
58
41
6
10
27
14
16
All checking account holders
21
56
14
Age of head (years)
Less than 35
35-44
45-54
55-64
65 or more
All checking account holders
Credit
cards
Uses ATMs four or more times per month
Family characteristic
Income (dollars)
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
Other
accounts
33
25
27
21
11
45
64
48
57
56
10
3
14
14
22
1
28
16
13
19
65
57
56
58
68
14
6
19
20
4
13
15
18
55
17
10
15
20
23
27
20
10
7
10
m
The Use of Cash and Transaction Accounts by American Families
charged) individuals also have an incentive to
hold a larger average supply that is replenished
less frequently.
The survey provides a great deal of information on patterns of cash acquisition and use. This
part of the survey is different from the others in
that the unit of observation is the individual
respondent rather than the family. This restriction is motivated by the fact that respondents can
give information about the transaction accounts
of other family members that is likely to be more
accurate than information about the cash accounts. For example, for transaction accounts
with written records, data on each account,
whether joint or separate, can be gathered from
the individual respondent who consults these
records. But for the cash account, written records generally are lacking, and the respondent
cannot be expected to have accurate information
on the cash transactions of other household
members. Thus, the unit of observation for these
data was the respondent rather than the family,
and therefore we used sampling weights based on
characteristics of the respondent, whereas, for
the family data, we used sampling weights based
on characteristics of the respondent's family.
When thus weighted, the respondents represent
all noninstitutionalized U.S. residents aged 18
years or more—more than 176 million persons at
the time of the sampling.
The survey collected two kinds of information
about patterns of cash acquisition and use. The
first kind is the description by respondents of
their own "typical" behavior in managing cash
balances: how frequently they obtain cash, how
much cash they usually have on hand before they
obtain more cash, and how much cash they
typically get when they obtain it. Also, individuals were asked to identify their usual source of
cash.
The second kind of information the survey
collected about cash acquisition and use focuses
on the most recent occasion on which the individual had obtained cash (not counting change
returned for a purchase made using cash). This
information is more easily recalled than information about typical behavior and allows for the
collection of considerably more details about the
use of cash: the date on which respondents last
obtained cash, the amount of cash they had on
97
hand before this acquisition, the amount they
acquired, the amount they spent during the first
hour and during the first day after the acquisition, the amount they had remaining at interview
time, and the next date on which they expected
to obtain cash. The interview date was also
recorded. Respondents were also asked how
much of the cash they obtained on the last
occasion had since been deposited into an account or used to purchase a financial asset, given
to a family member, or used to purchase a money
order or traveler's checks. This information is
useful for distinguishing how much cash is used
for financial purposes (that is, redistribution,
investment, or conversion to another form of
payment) from how much is used to pay for
goods and services. Respondents were also
asked to identify the source of their cash on the
last occasion they obtained it.
Patterns
of Cash
Acquisition
Individuals obtain cash to replenish their supplies in a variety of ways (table 9). For about 5
percent of the population, the receipt of income
in cash is the principal mode of cash acquisition.
Another small proportion, about 3 percent, typically obtain their cash from a family member.
Thirty-seven percent of individuals ordinarily
acquire cash by cashing a check drawn on someone else's account, such as a paycheck. But the
9. Distribution of individuals and of aggregate cash
obtained, by principal source and method of
acquiring cash, 1984
Percent
Source and method
From another
Income received in cash 1
From family member
Cash check drawn on another
From own account
Cash own check at financial
institution
ATM
Cash own check at store
Withdrawal from savings or
credit union account
Total
Individuals
Aggregate
cash
obtained
5
3
37
6
4
44
32
11
8
29
9
6
3
2
100
100
1. Here and in succeeding tables, includes all sources and methods
not otherwise classified.
98
Federal Reserve Bulletin • February 1986
10. Distribution of respondents with selected characteristics, by principal method of acquiring cash, 1984
Percent
Method
Respondent characteristic
Income
received in
cash
From
family
member
Cash check
drawn on
another
Cash own
check at
financial
institution
ATM
Cash own
check at
store
Withdrawal
from
savings or
credit
union
account
Marital status
Married
Male
Female
Single
6
3
7
2
5
1
39
37
34
31
34
34
12
8
12
6
10
8
3
3
4
Family income
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
9
6
3
5
1
4
1
6
3
3
40
43
37
36
24
32
32
34
30
38
4
8
10
15
18
7
7
7
9
11
3
2
2
3
4
Age (years)
Less than 35
35-44
45-54
55-64
65 or more
5
3
3
6
8
3
4
7
1
1
41
38
40
34
38
24
28
27
40
56
17
13
9
6
1
9
9
8
10
4
2
3
6
2
4
Education
Less than 12 years
High school diploma
Some college
College degree
9
4
5
5
3
3
3
4
44
46
29
26
36
30
36
32
1
7
14
20
4
8
8
10
3
2
4
4
Sex
Male
Female
6
4
2
4
38
36
31
34
12
9
6
9
3
3
Race or national origin
Caucasian
Nonwhite or Hispanic
5
7
3
7
35
45
34
24
11
8
8
7
3
3
Location of residence
Urban
Suburban
Rural
6
4
5
4
2
2
37
34
40
30
33
37
11
15
5
7
9
8
4
2
2
majority, 55 percent, usually obtain cash by
debiting one of their own accounts: by cashing a
check drawn on their own account at a store or
financial institution, by using an ATM, or by
withdrawing funds from a savings or credit union
share account.
A small proportion of the total amount of cash
obtained by all individuals simply involves a
transfer of cash from one person's inventory to
another's, such as cash obtained from a family
member or labor sold for cash. The bulk, however, is obtained by converting some part of a
financial account balance into cash. When the
conversion takes place at a depository institution, the cash so acquired represents a gross cash
drain from the vault cash of that institution. As
shown in table 9, the survey data suggest that at
least 85 percent of the aggregate amount of
currency obtained by individuals is acquired by
methods that result in a gross drain of vault cash.
When weighted to represent the U.S. adult population, gross outflow at the time of the survey
amounts to about $65 billion per month. Since
depository institutions held approximately $20
billion in vault cash at the time, this total implies
that their aggregate vault cash turned over at the
rate of about 3lA times per month in support of
the cash inventory practices of U.S. adults.
The principal methods of obtaining cash vary
over demographic groups (table 10). As income
rises, individuals are more likely to obtain cash
from an ATM or by cashing their own check and
are less likely to obtain cash by cashing a check
they receive from someone else. Older persons,
whether working or retired, acquire cash less
frequently through ATMs and more frequently
The Use of Cash and Transaction Accounts by American Families
99
10. Continued
Method
Respondent characteristic
Income
received in
cash
From
family
member
Cash check
drawn on
another
Cash own
check at
financial
institution
39
34
28
41
40
39
29
29
10
13
46
18
13
33
27
22
31
34
8
29
13
46
30
29
Labor force participation
Respondent
Working
Not working
Spouses
One spouse working . . .
Both spouses working..
How respondent is paid1
Check
Cash
Automatic transfer
Other
4
36
4
5
How family is paid2
Check 3
Cash 4
Automatic transfer 5
Other
18
21
ATM
Withdrawal
from
savings or
credit
union
account
11
9
9
24
10
37
32
35
Method of depositing social
security check6
Directly deposited
Not directly deposited
17
48
55
37
Family ownership of credit
cards
None
One or more cards
33
39
40
28
Family ownership of ATM
cards
None
One or more cards
45
25
35
31
26
Proximity to ATMs1
Not near
Near
16
26
33
31
24
26
1.
2.
3.
4.
Cash own
check at
store
0
For employed respondents.
For couples with at least one employed member.
Neither member of couple paid in cash or by automatic transfer.
At least one member of couple paid in cash.
5. At least one member of couple paid by automatic transfer and
neither member paid in cash.
6. For families receiving such income.
7. For families owning ATM cards.
by cashing a check drawn on their own account
at a financial institution. An individual's typical
source of cash is more likely to be an ATM or a
store the more education the person has; lesseducated individuals are more likely to obtain
cash by cashing a check they receive from someone else. Finally, the cash acquisitions for individuals whose income is automatically deposited
into an account are more concentrated in ATMs
and in cashing checks drawn on their own accounts at financial institutions. For other individuals, cash is more likely to be obtained by
cashing checks received.
The time between acquisitions of cash also
varies systematically among groups of individuals (table 11). For example, as income rises, the
time declines from a mean of about 18 days for
persons with annual incomes of less than $10,000
to a mean of less than 8 days for persons with
incomes of $50,000 or more. Persons with more
education tend to acquire cash more frequently
than those with less education, and younger
persons more frequently than older persons.
Individuals who typically obtain cash from
ATMs have the shortest interval, averaging only
about 7 days between cash replenishments,
whereas individuals who typically obtain cash by
withdrawing funds from a savings account have
the longest, an average of about 17 days.
The amount of cash individuals typically acquire to replenish depleted supplies averages
$135. Because a few individuals obtain very large
100 Federal Reserve Bulletin • February 1986
11. Typical and most recent behavior of respondents with selected characteristics in obtaining cash, 1984
Percent
Most recent behavior
Typical behavior
Respondent
characteristic
Days between
acquisitions
Dollars on hand
Dollars
acquired
acquisition
Days between
acquisitions
Mean
Median
Mean
Median
Mean
Median
Mean
Marital status
Married
Male
Female
Single
14
11
15
7
7
10
43
24
34
20
10
10
156
117
124
100
67
75
13
11
14
Family income
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
19
15
11
10
9
15
7
7
7
7
28
32
30
40
37
10
15
15
20
20
135
149
123
131
129
80
100
63
75
100
Age (years)
Less than 35
35-44
45-54
55-64
65 or more
10
10
11
17
22
7
7
7
7
30
26
37
35
38
37
10
12
20
20
20
121
137
136
147
143
Education
Less than 12 years
High school diploma
Some college
College degree
19
14
10
10
15
7
7
7
37
32
32
34
17
15
15
15
Sex
Male
Female
13
13
7
7
44
25
Race
Caucasian
Other
12
18
7
14
Location of residence
Urban
Suburban
Rural
14
11
13
Labor force
participation
Respondent
Working
Not working
Spouses
One spouse working..
Both spouses working..
acquisition
Dollars
acquired
Mean
Median
Mean
Median
8
8
9
38
28
29
20
10
10
172
129
127
100
65
70
17
14
12
11
9
14
8
8
8
7
24
28
35
39
36
10
10
15
20
20
123
135
139
150
187
60
70
75
80
100
50
75
100
100
100
9
11
11
16
20
7
7
7
10
16
26
43
36
32
26
10
15
20
15
20
116
162
165
157
149
60
80
100
75
100
185
138
115
113
100
85
70
75
17
14
10
10
14
8
7
7
46
28
30
30
13
10
15
15
176
130
125
157
130
69
72
70
20
10
156
114
100
63
13
12
8
8
39
26
20
10
170
123
100
60
34
31
15
18
128
163
75
100
12
15
8
10
30
41
15
10
139
173
75
100
7
7
7
34
32
33
17
20
13
139
121
135
100
75
75
13
10
14
8
7
9
33
34
29
15
15
10
131
173
145
90
75
63
11
17
7
15
33
34
15
15
129
143
75
100
11
16
7
12
35
27
15
12
143
149
70
100
13
9
7
7
34
32
20
15
145
124
100
65
13
10
8
7
40
32
20
13
154
145
100
60
amounts of cash, however, the average exceeds
the median amount, which is $80. Some groups
of individuals tend to obtain larger amounts of
cash than do others. The median amount acquired by males, for example, whether married
or single, is $100 per transaction, and the median
for females is $60. Individuals with higher incomes acquire larger amounts of cash than do
individuals with lower incomes, but the quantity
of cash obtained increases less than proportionately with income. Up to middle age, the amount
of cash obtained on each occasion increases with
age; beyond middle age, it does not. Individuals
Median
Dollars on hand
who acquire cash primarily through ATMs or by
cashing checks at stores obtain relatively smaller
quantities—median amounts of $50 and $35 respectively—and, as noted above, obtain cash
most frequently.
Cash
Velocity
The turnover rate, or velocity, of cash is a ratio
defined as total spending out of cash during some
interval of time, divided by average cash holdings during the same interval. Velocity measures
the payments efficiency of cash in the sense that
The Use of Cash and Transaction Accounts by American Families
101
11. Continued
Typical behavior
Most recent behavior
Days between
acquisitions
Dollars on hand
before
acquisition
Mean
Median
Mean
Median
Mean
How respondent is
paid1
Check
Cash
Automatic transfer
Other
11
8
9
11
7
7
7
7
34
40
28
34
17
20
10
13
How family is paid2
Check 3
Cash4
Automatic transfer 5
Other
12
9
9
10
7
7
7
7
33
46
25
36
Method of depositing
social security
check6
Directly deposited
Not directly deposited..
18
26
15
30
13
10
15
Respondent
characteristic
Typical means of
obtaining cash
Income received in
cash
From family member...
Cash check drawn on
another
Cash own check at
financial institution
ATM
Cash own check at
store
Withdrawal from
savings or credit
union account
Days between
acquisitions
Dollars on hand
before
acquisition
Median
Mean
Median
Mean
Median
Mean
Median
140
152
75
111
80
80
50
57
11
9
9
9
7
7
7
7
36
48
28
33
15
25
10
10
143
118
183
99
80
60
50
50
17
20
13
15
144
158
89
111
100
75
60
65
12
10
9
10
8
7
7
7
36
50
26
37
15
20
10
15
148
141
176
103
90
90
60
60
40
30
20
16
125
167
100
100
18
22
14
16
25
23
15
10
143
170
100
100
7
7
36
27
20
10
166
112
100
75
12
10
9
7
47
31
25
10
143
100
100
50
10
42
20
185
112
15
9
38
15
173
100
80
50
Dollars
acquired
Dollars
acquired
14
7
7
7
33
16
20
8
117
60
90
50
13
7
9
6
32
19
19
10
154
104
9
7
20
7
71
35
9
7
14
5
66
30
15
14
28
15
108
80
15
13
32
15
103
80
Family ownership of
credit cards
None
One or more cards
16
11
14
7
32
34
15
17
137
132
100
75
15
11
11
7
26
36
11
15
141
147
85
75
Family ownership of
depository accounts
None
One or more accounts..
10
12
15
7
22
34
10
17
232
127
200
75
17
12
14
8
23
33
5
15
182
142
158
75
Family ownership of
ATM cards
None
One or more cards
16
9
10
7
38
27
20
13
156
103
100
50
15
10
10
7
36
26
15
10
160
123
100
60
Proximity to ATMs7
Not near
Near
10
9
7
7
18
27
13
13
84
104
60
50
12
9
9
7
18
27
10
10
159
121
50
60
All respondents
13
7
33
15
134
80
13
8
32
13
75
75
1.
2.
3.
4.
For employed respondents.
For couples with at least one employed member.
Neither member of couple paid in cash or by automatic transfer.
At least one member of couple paid in cash.
a higher turnover rate implies that each dollar of
cash outstanding supports a larger volume of
spending. A central objective of obtaining sample data on the cash inventory practices of U.S.
residents was to develop population estimates of
average cash balances and turnover rates.
5. At least one member of couple paid by automatic transfer and
neither member paid in cash.
6. For families receiving such income.
7. For families owning ATM cards.
The survey was limited to U.S. family members aged 18 years or more, and thus it provides
no direct information on the cash management of
business enterprises (whether legitimate or "underground"), persons outside the United States,
or persons aged less than 18 years. Neverthe-
102 Federal Reserve Bulletin • February 1986
12. Typical behavior of respondents with selected characteristics in holding and spending cash, 1984
Proportion
of
respondents
(percent)
Mean
monthly
cash
expenditure
(dollars)
Mean
average
balance
(dollars)
Mean
monthly
turnover rate
Cash
expenditures
ratio
(percent)1
Cash balance
ratio
(percent) 2
Marital status
Married
Male
Female
Single
38
38
24
489
399
344
121
82
96
4.1
4.9
3.6
44
36
20
46
31
23
Family income
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
20
22
20
23
15
297
421
412
464
528
97
105
92
105
101
3.1
4.0
4.5
4.4
5.2
14
22
19
26
19
20
23
18
24
15
Age (years)
Less than 35
35-44
45-54
55-64
65 or more
32
20
17
16
15
446
463
468
424
255
86
104
103
110
114
5.2
4.5
4.6
3.9
2.2
34
22
19
16
9
28
21
17
17
16
Education
Less than 12 years
High school diploma
Some college
College degree
17
36
20
27
415
422
429
414
129
101
89
90
3.2
4.2
4.8
4.6
17
37
20
27
22
37
17
24
Sex
Male
Female
46
54
422
366
122
82
4.0
4.5
53
47
56
44
Race or national origin
Caucasian
Nonwhite or Hispanic
83
17
424
398
98
112
4.3
3.6
84
16
81
19
Location of residence
Urban
Suburban
Rural
51
24
25
426
444
384
104
91
100
4.1
4.9
3.8
52
25
23
53
22
25
66
34
463
337
97
106
4.8
3.2
73
27
64
36
27
37
466
471
105
93
4.4
5.1
30
41
29
34
Respondent characteristic
Labor force participation
Respondent
Working
Not working
Spouses
One spouse working
Both spouses working
less, the survey results are significant because
previously it was impossible to estimate directly
from existing data the volumes of cash holdings
and spending or to assess the accuracy of indirect estimates. The survey thus goes a long way
toward filling an important gap in quantitative
knowledge about the role of cash in the U.S.
payments mechanism.
Individuals cannot be expected to recall accurately their total volume of spending with cash
over a month or a year or to know the average
amount of cash they held to support this spending; therefore, the survey did not attempt to
solicit this information directly. Estimates of
these quantities can be calculated from the sur
vey responses, however, by using the framework
of inventory theory as a guide. For example, suppose an individual reports that he or she
obtains cash three times per month, typically has
$20 on hand just before acquiring cash to replenish the inventory, and usually obtains $80. Over
a representative interval between cash acquisitions, then, this individual spends $80 (the beginning inventory balance of $100 less the ending
inventory balance of $20) and, assuming a uniform rate of spending over the interval, maintains an average inventory balance of $60 ($20
plus one-half of $80). Because there are three
such intervals per month, total monthly cash
expenditure is $240 ($80 x 3), and the average
The Use of Cash and Transaction Accounts by American Families
103
12. Continued
Proportion
of
respondents
(percent)
Mean
monthly
cash
expenditure
(dollars)
Mean
average
balance
(dollars)
Mean
monthly
turnover rate
Cash
expenditures
ratio
(percent) 1
Cash balance
ratio
(percent) 2
How respondent is paid3
Check
Cash
Automatic transfer
Other
47
3
9
6
473
683
356
425
103
119
65
89
4.6
5.7
5.5
4.8
53
5
8
6
48
4
6
6
How family is paid4
Check3
Cash 6
Automatic transfer 7
Other
44
4
11
5
474
572
411
463
104
122
70
91
4.6
4.7
5.9
5.1
49
6
11
6
45
5
8
5
Method of depositing social
security check8
Directly deposited
Not directly deposited
12
12
268
290
104
116
2.6
2.5
8
9
12
14
5
3
37
510
464
498
115
84
133
4.4
5.5
3.8
6
4
44
6
3
49
33
11
8
369
361
324
93
46
55
4.0
7.8
5.9
28
9
6
30
5
4
3
293
85
3.5
2
3
Family ownership of credit cards
None
One or more cards
40
60
345
470
102
99
3.4
4.7
40
60
41
59
Family ownership of depository
accounts
None
One or more accounts
8
93
462
417
131
98
3.5
4.3
8
92
10
90
Family ownership of ATM cards
None
One or more cards
60
40
426
411
116
78
3.7
5.3
61
39
69
31
Proximity to ATMs9
Not near
Near
2
38
345
415
60
79
5.8
5.3
2
38
1
30
100
420
100
4.2
100
100
Respondent characteristic
Typical means of obtaining cash
Income received in cash
From family member
Cash check drawn on another
Cash own check at financial
institution
ATM
Cash own check at store
Withdrawal from savings or credit
union account
All respondents
1. Total cash expenditures of subgroup as a share of total cash
expenditures of all respondents.
2. Sum of average cash balances of subgroup members as a share of
sum of average cash balances of all respondents.
3. For employed respondents.
4. For couples with at least one employed member.
amount of cash held over the month is $60; these
figures imply a cash turnover rate of 4 times per
month for this individual.
The average cash holdings and monthly cash
expenditures of individuals have been used to
calculate aggregate turnover rates rather than
simple averages of individual turnover rates; the
aggregate rates are calculated for any class of
individuals by dividing the group's total volume
of monthly cash expenditure by the group's total
average holdings of cash (tables 12 and 13). Table
5.
6.
7.
8.
9.
Neither member of couple paid in cash or by automatic transfer.
At least one member of couple paid in cash.
At least one member of couple paid by automatic transfer.
For families receiving such income.
For families owning ATM cards.
12 reports data derived from questions on typical
cash spending patterns; table 13 is based on the
last time the respondents obtained cash.
The estimated average cash holdings per individual amounted to about $100. Given the size of
the sampled population at the time of the survey,
these estimates imply that, in the aggregate,
adult, noninstitutionalized U.S. residents held
about $18 billion in cash, which they used for
transactions. Given the sampling variation and a
statistical confidence interval of 95 percent,
104 Federal Reserve Bulletin • February 1986
13. Most recent behavior of respondents with selected characteristics in holding and spending cash, 1984
Respondent characteristic
Marital status
Married
I Male
Female
Single
Family income
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
Gross
cash expenditures
ratio
(percent)2
Net
cash expenditures
ratio
(percent) 3
Proportion of
respondents
Mean
gross
monthly
cash expenditure 1
Mean
net
monthly
cash expenditure 1
Mean
average
cash
balance
Mean
gross
monthly
turnover
rate 1
Mean
net
monthly
turnover
rate 1
38
38
24
556
457
387
469
3%
378
124
93
92
4.5
4.9
4.2
3.8
4.3
4.1
44
37
19
42
36
22
45
34
21
20
298
484
450
500
702
85
%
104
114
130
3.5
5.1
4.3
4.4
5.4
3.4
4.5
3.9
4.0
4.3
13
22
19
24
22
14
22
19
25
" 20
16
20
20
25
19
22
20
23
15
Cash
balance
ratio
(percent) 4
Age (years)
Less than 35
35-44
45-54
55-64
65 or more
32
20
17
16
15
84
124
119
111
101
5.9
4.3
4.7
4.2
2.8
5.0
3.9
4.2
3.6
2.8
33
22
20
15
9
32
23
20
15
10
26
24
19
16
15
Education
Less than 12 years
High school diploma
Some college
College degree
17
36
20
27
135
94
93
108
3.5
4.4
5.6
4.9
3.5
4.1
4.6
4.0
17
32
22
30
19
33
20
28
22
33
18
28
Sex
Male
Female
46
54
4.4
4.8
3.8
4.3
53
47
52
48
55
45
Race
Caucasian
Other
83
17
4.8
3.6
4.2
3.5
84
16
82
18
80
Location of residence
Urban
Suburban
Rural
51
24
25
4.5
4.7
4.5
4.3
4.0
3.6
47
29
24
51
27
22
48
28
24
106
101
4.9
3.9
4.3
3.5
72
28
71
29
67
33
117
104
4.7
5.1
4.3
4.1
31
41
32
37
30
37
Labor force participation
Respondent
Working
Not working
Spouses
One spouse working...
Both spouses working .
441 ]
568
459
66
34
519
393
27
36
547
534
368
"K
•mmm
454
359
1
H
these holdings represented only 11 to 12 percent
of the stock of currency and coin in circulation
outside banks, which was $153.9 billion (not
seasonally adjusted) in the second quarter of
1984. Unless respondents have severely understated their cash holdings, more than 85 percent
of the U.S. currency stock outside depository
institutions was held—apart from some that may
be lost and unaccounted for—by other agents
such as business enterprises, persons in other
countries, and persons aged less than 18 years. It
does not seem likely that children could have
held cash inventories much greater than the total
holdings of adults. In addition, the cash holdings
99
120
101
479
49<7
20
'*
of businesses generally consist of cash received
from sales and inventories of cash held for making change and minor purchases. Because there
are strong economic and safety incentives to
minimize cash holdings, legitimate businesses
are not likely to hold much more cash than all
adults. Therefore, the survey results suggest that
a large proportion of the U.S. currency stock is
held either in hoards, "underground," or offshore and thus for purposes not directly related
to measured domestic economic activity.
According to the survey results, the cash holdings of individuals were turned over at an aggregate rate of about 4.2 times per month in support
The Use of Cash and Transaction Accounts by American Families
105
13. Continued
Proportion of
respondents
Mean
gross
monthly
cash expenditure 1
Mean
net
monthly
cash expenditure 1
Mean
average
cash
balance
Mean
gross
monthly
turnover
rate 1
Mean
net
monthly
turnover
rate 1
Gross
cash expenditures
ratio
(percent) 2
Net
cash expenditures
ratio
(percent) 3
Cash
balance
ratio
(percent) 4
How respondent is paid5
Check
Cash
Automatic transfer
Other
47
3
9
6
553
542
535
380
475
520
373
376
107
108
119
82
5.0
5.0
4.5
4.6
4.5
4.8
3.1
4.6
53
4
10
5
53
4
8
6
48
3
10
5
How family is paid6
Check 7
Cash 8
Automatic transfer 9
Other
44
4
11
5
547
543
576
395
474
490
407
394
110
120
114
88
5.0
4.5
5.0
4.5
4.3
4.1
3.6
4.5
50
5
13
4
49
5
10
5
46
5
12
4
Method of depositing social security check10
Directly deposited
Not directly deposited
12
12
315
323
313
291
%
107
3.3
3.0
3.2
2.7
8
8
9
9
11
13
5
3
37
496
418
569
477
389
481
118
82
125
4.2
5.1
4.5
4.0
4.8
3.8
5
3
44
6
3
42
6
3
44
33
11
8
438
507
308
381
453
266
109
71
47
4.0
7.1
6.6
3.5
6.4
5.7
30
11
5
30
11
5
34
7
4
3
307
297
83
3.7
3.6
2
2
3
40
60
390
534
361
462
97
110
4.0
4.9
3.7
4.2
33
67
35
65
37
63
7
93
466
477
461
418
114
104
4.1
4.6
4.0
4.0
7
93
8
92
8
92
Family ownership of ATM cards
None
One or more cards
60
40
466
490
418
427
116
88
4.0
5.6
3.6
4.9
59
41
59
41
66
34
Proximity to ATMs11
Not near
Near
2
38
567
486
557
420
98
87
5.8
5.6
5.7
4.8
3
39
3
38
2
32
100
476
453
104
4.6
4.3
100
100
100
Respondent characteristic
Typical means of obtaining cash
Income received in cash
From family member
Cash check drawn on another
Cash own check at financial
institution
ATM
Cash own check at store
Withdrawal from savings or credit
union account
Family ownership of credit cards
None
One or more cards
Family ownership of depository
None
One or more accounts
All respondents
accounts
1. Gross cash expenditures are all cash expenditures, including
financial transactions and cash given to other family members. Net
cash expenditures exclude these two categories. Gross and net cash
turnover rates are defined as gross and net cash expenditures respectively, divided by average cash balances.
2. Total gross cash expenditures of subgroup as a share of total
gross cash expenditures of all respondents.
3. Calculation in note 2 using net cash expenditures.
4. Sum of average cash balances of subgroup members as a share of
sum of average cash balances of all respondents.
5. For employed respondents.
6. For couples with at least one employed member.
7. Neither member of couple paid in cash or by automatic transfer.
8. At least one member of couple paid in cash.
9. At least one member of couple paid by automatic transfer and
neither member paid in cash.
10. For families receiving such income.
11. For families owning ATM cards.
of about $420 in gross cash expenditure. Gross
expenditure here is taken to include all cash
expenditures, financial investments, and transfers to other family members. These estimates
imply that the stock of cash held by the sampled
population supported a flow of expenditure that,
at an annual rate, amounted to about $920 billion.
Thus, although individuals' holdings of cash rep-
resented a small fraction of the U.S. currency
stock, these balances were used very actively in
support of trade.
The aggregate turnover rates reported in tables
11 and 12 can be broken down into weighted
averages of turnover rates for groups of individuals with similar demographic or other distinguishing characteristics; the individual weights
106
Federal Reserve Bulletin • February 1986
are the product of the fractions of aggregate cash
holdings accounted for by the group members
and their respective population weights described in appendix B. This type of analysis is
the starting point for assessing probable secular
changes in the aggregate cash turnover rate given
projected demographic shifts. As revealed in the
tables, the cash turnover rate varies substantially
across classes of individuals using different
methods for acquiring cash. The general pattern
is that the cash turnover rate tends to be highest
for those groups of individuals who acquire cash
through methods with comparatively low marginal convenience costs—ATMs, check cashing
at stores, and from a family member. These
individuals also tend to acquire cash with the
highest frequency and to hold relatively small
average cash inventories. The high turnover rate
of cash obtained through ATMs, coupled with
the low average supply of cash maintained by
individuals who acquire it principally from
ATMs, suggests that the widening use of ATMs
may damp the growth of the aggregate currency
demand of individuals and increase the aggregate
velocity of cash.
The survey also shows strong life-cycle effects
in the cash turnover rate, which is highest for
younger individuals and declines with age. Older
individuals acquire cash less frequently, maintain higher average inventories of cash, and have
a lower dollar volume of spending out of cash
than do younger persons. Taken as a percentage
of income, however, cash expenditures are highest for individuals aged less than 35 years, decline to a low of about 23 percent for middle-age
individuals, and thereafter increase with age.
Based on respondents' reports of their typical
behavior, average cash inventories do not vary
significantly across income classes, but cash
expenditures rise strongly with income. The result is that cash turnover rates rise with income.
Respondents' reports of their most recent cash
acquisition confirm the positive link between
turnover rates and income found in the data
describing typical behavior; but they contradict
the finding there about cash inventories, which
they suggest do increase, though less than proportionately, with income. In both sets of data,
cash expenditures rise with income, but less than
proportionately.
SUMMARY
OF
FINDINGS
This article has presented some preliminary results from the 1984 Survey of Currency and
Transaction Account Usage. An important finding is that different means of payment have
different uses that vary over socioeconomic
classes. While all families use cash for expenditures, 14 percent use only cash. Checking accounts are by far the principal means of payment, covering an average of 57 percent of total
family expenditures. As income rises, the use
and dollar volume per transaction of secondary
transaction accounts rises, though that increase
is less than proportional. Although credit cards
are widely used, credit card expenditures on
average are a relatively small fraction of total
family expenditures. One surprising implication
of the findings on cash inventories is that less
than 15 percent of the stock of currency in the
United States (adjusted for vault cash and known
losses) is held for transaction purposes by the
sampled population of individuals.
The availability of ATMs has increased rapidly
across the country. At the time of the survey, 43
percent of families had ATM cards, but only 30
percent of families actually used an ATM card in
the month preceding the survey. Use of ATMs is
higher for younger and for higher-income families. On average, individuals who use ATMs as
their principal source of cash maintain average
cash holdings that are significantly smaller, and
they replenish them more often.
The Use of Cash and Transaction Accounts by American Families
APPENDIX
A: SURVEY
DESIGN
107
1. In the survey, the family is defined as an individual
living alone or as any number of persons related by blood or
marriage who are living together. The head of the family is
defined as the individual living alone, the male of a married
couple, or the adult in a family with more than one person and
only one adult. When there is no married couple and more
than one adult, the head is the person designated by the
family. Adults are persons aged 18 years or more.
case with all sample surveys, the data are subject
to errors of sampling, reporting, and nonresponse. Appendix B discusses the influence of
these factors in the results of the survey.
Certain facts about this survey sample should
be noted. First, the sample is restricted to families with telephones. For this reason, it is likely
that single individuals and poorer individuals and
families are sampled less frequently. Second,
there are two types of sample elements for each
observation, the individual respondent and the
respondent's family. For each telephone number, only one person was chosen as a respondent. For this reason, single individuals are more
likely to have been chosen than married individuals with similar characteristics. To the extent
that the behavior of groups excluded from the
sample is represented by similar groups within
the sample, population characteristics may be
estimated with appropriate individual and family
sampling weights as described in appendix B.
Interviewing for the survey was conducted by
the Survey Research Center of the University of
Michigan primarily in the second quarter of 1984,
a period chosen because it is the least likely to
exhibit strong seasonal effects. A total of 1,946
interviews were obtained by the end of the
survey, in August 1984.
APPENDIX B: ERRORS OF SAMPLING,
REPORTING, AND
NONRESPONSE
B.l Approximate sampling errors of survey results,
by size of sample1
The 1984 Survey of Currency and Transaction
Account Usage employed multistage probability
sampling to select 2,500 residential telephone
numbers. At the first stage, the universe of these
telephone numbers was stratified geographically.
Final sample telephone numbers with the firststage selection of prefix numbers were randomly
drawn from 44 states and the District of Columbia.
The sample represents the four major U.S.
regions—Northeast, North Central, South, and
West—in proportion to their populations. At
each telephone number, the individual selected
as respondent was either the head of the family
or, in the case of a married couple, a financially
knowledgeable spouse. 1 Respondents were encouraged to consult other family members and
financial records in an effort to obtain complete
and accurate responses. Nevertheless, as is the
Percentage points
The results of any survey and the estimates of
population characteristics derived from it are
subject to errors based on the degree to which
the sample varies from the population, errors
arising during the interview, and errors derived
from incomplete responses.
Survey results
(percent)
50
30 or 70
20 or 80
10 or 90
5 or 95
Size of sample
3,000
2,000
500
300
100
2.5
2.3
2.0
1.5
1.1
2.8
2.5
2.2
1.7
1.2
3.6
3.3
2.9
2.2
1.6
6.2
5.7
4.9
3.7
2.7
10.5
9.6
8.4
6.3
4.6
1. Two standard errors.
Errors of
Sampling
Sampling error is a measure of the possible
random deviation of the survey findings resulting
from the selection of a particular sample. Table
B.l contains the approximate sampling errors
associated with various sample sizes and reported percentages from a survey, assuming a confi-
dence level of 95 percent. Therefore, for most
responses, the chances are 95 in 100 that the
estimated value lies within a range equal to the
reported percentages plus or minus the sampling
error. For most of the tables in this article, the
appropriate sample size is between 1,000 and
2,000 respondents.
108 Federal Reserve Bulletin • February 1986
All survey results are subject to reporting errors,
which may occur accidentally, purposely, or
from a lack of information. They may arise
because respondents misunderstand questions,
falsify responses, or simply lack interest in the
survey. They may also occur when interviewers
misinterpret responses or query respondents in
an inconsistent manner. These sources of error
can be minimized by careful training of interviewers, gaining the confidence and cooperation
of respondents, and identifying inconsistencies
during the coding and processing of responses.
Sixty-one cases were discarded from the sample because most of the dollar values were missing or because values of key variables were
highly implausible. For the remaining 1,885 observations, all missing values were imputed.
Briefly, we imputed the missing values by iteratively estimating the distribution of variables that
were missing; after this estimation, which was
conditioned on the set of variables observed for a
given case, we calculated the most probable
estimates of the missing values. We made final
imputations using the estimated value plus a
random term that preserves unexplained variation within the sample. 2
Errors of
Sampling
Errors of
Reporting
Nonresponse
Nonresponse errors may arise because a family
selected for participation in the survey could not
be interviewed, perhaps because the family refused to participate, could not be contacted after
callbacks, or was unable to respond for medical
reasons or because the interviewer and the respondent did not share a common language.
Errors of nonresponse may be reduced by imposing strict requirements for response rates on the
organization conducting the interviewing. A response rate of 78 percent was achieved for the
1984 Survey of Currency and Transactions Account Usage. Errors of this type, like reporting
errors, are not precisely measurable.
As is the case in virtually every household
survey, the Survey of Currency and Transactions Account Usage also contained observations with missing values for some of the variables. Of the 1,946 observations in the original set
of data, 1,122 were incomplete. The average
number of missing values, however, was quite
small—about 3 out of 230 variables per observation. Most key variables were present in all but a
small proportion of observations. For example,
data on the amount of currency usually obtained
was missing in only 4 to 5 percent of the interviews. The dollar amount of family income was
the most frequently missing variable; it was
missing in about 10 percent of the observations,
though a significant proportion of these respondents furnished information on their range of
income.
Weights
One means of making formal correction for nonresponse bias is to use sampling weights in the
calculation of population statistics. 3 In the case
of the Survey of Currency and Transaction Account Usage, two population universes of U.S.
residents are of interest: noninstitutionalized
families and noninstitutionalized individuals
aged 18 years or more. For purposes of computing appropriate sampling weights, the survey
sample was post-stratified by marital status, sex,
age, race, and income for individual respondents
and for their families. Corresponding population
frequencies were estimated using the 1983 Survey of Consumer Finances. 4 For each cell, individual sampling weights and family sampling
weights are given by the ratio of the respective
universe and sample cell frequencies. All calculations reported in this article were made using
the individual or the family sampling weights.
2. Details of this procedure are given in Robert B. Avery,
Gregory E. Elliehausen, Arthur B. Kennickell, and Paul A.
Spindt, "A Microanalytic View of the Payments Mechanism:
Some Preliminary Results from the Survey of Currency and
Transaction Account Usage" (paper presented at the annual
meeting of the Financial Management Association, October
9-11, 1985).
3. D.G. Horwitz and D.J. Thompson, "A Generalization
of Sampling Without Replacement from a Finite Universe,"
Journal of the American
Statistical
Association,
vol. 48
(December 1952), pp. 396-404.
4. Robert B. Avery and Gregory E. Elliehausen, 1983
Survey of Consumer Finances
(Board of Governors of the
Federal Reserve System, forthcoming).
109
Treasury and Federal Reserve Foreign
Exchange Operations: Interim Report
This interim report, covering the period August
through October 1985, is the twenty-sixth 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.
After rising for a time in August and early
September, dollar exchange rates dropped sharply after an announcement on September 22 by
the Ministers of Finance and Central Bank Governors of the five major industrial nations. 1 The
monetary authorities agreed to pursue additional, specific policies to sustain and accelerate
more balanced expansion with low inflation, and
to cooperate more closely in furthering an orderly appreciation of nondollar currencies. For the
August-October period as a whole, the dollar
extended the decline that had begun in early
1985, against a background of spreading perceptions that U.S. economic growth was slowing
while activity abroad was picking up. By the end
of October, the dollar had fallen nearly 11 percent in terms of the Japanese yen compared with
its level at the end of July, by about 6 percent
relative to continental currencies, and by 2 percent against the pound sterling. On a tradeweighted average basis, the dollar closed about
5V2 percent lower than its levels at the end of
July, and 22 percent below its highs of late
February 1985.
1. The text of the statement made on September 22, 1985,
by the Ministers of Finance and Central Bank Governors of
France, the Federal Republic of Germany, Japan, the United
Kingdom, and the United States is available on request from
Publications Services, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.
As the period opened, the dollar continued the
irregular decline that had occurred during the
previous five months, but the pace of decline was
slowing. Economic statistics were still suggesting that growth of U.S. production and employment remained sluggish during the summer
months. But market participants doubted that
U.S. interest rates would extend the decline that
had begun earlier in the spring since they viewed
the Federal Reserve as likely to be increasingly
cautious in the face of continued rapid monetary
growth. Starting in late August, the dollar actually began to rise as it appeared that the outlook for
U.S. economic growth might be more favorable
than had been predicted earlier. Trade and employment data that were better than anticipated
prompted market participants to change their
expectations for the U.S. economy and for interest rates. Under these circumstances, commercial c u s t o m e r s a s well a s professionals acted t o
cover short positions and to reduce hedges
against dollar assets established when the dollar
1. Federal Reserve reciprocal currency arrangements
Millions of dollars
Amount of facility,
October 31, 1985
Institution
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
Bank of Mexico
Netherlands Bank
Bank of Norway
Bank of Sweden
Swiss National Bank
Bank for International
Settlements:
Swiss francs-dollars
Other authorized
European currencies-dollars
Total
: —
250
1,000
2,000
250
3,000
2,000
6,000
3,000
5,000
700
500
250
300
4,000
600
1,250
30,100
110 Federal Reserve Bulletin • February 1986
had been falling. Moreover, evidence of a renewed flow of private foreign capital into the
U.S. securities markets during September, after
a temporary slackening in August, helped to
dispel concern that the dollar's decline since the
spring would cause a major shift of investor
preferences toward nondollar currencies. The
dollar reached its highest levels of the threemonth period under review during the second
week of September, as traders anticipated that
upcoming "flash" estimates of gross national
product would reveal strong growth in the third
quarter.
By mid-September, however, market participants began to question whether the expected
pickup in economic activity would be strong
enough to sustain dollar exchange rates at the
levels they had reached, which were 4 to 9
percent higher than those of early August. As
these questions led some professionals to take
profits, the dollar fell, dropping further when the
"flash" GNP estimate turned out to be lower
than most market forecasts.
The dollar's fall then gained momentum after
September 22, when the G-5 Finance Ministers
and Central Bank Governors made their announcement following a meeting in New York.
The statement drew attention to changes already
occurring in fundamental economic conditions
around the world, in particular the shift to more
moderate growth in the United States, stronger
growth in other countries, and the convergence
of inflation rates at a lower level. Recognizing
that these changes had not yet been fully reflected in exchange rates, the officials affirmed the
strong prospects for progress in reducing international economic imbalances and the intentions of
the G-5 governments to implement policies to
sustain and accelerate these improvements.
Each of the countries issued a specific statement
of policy intentions to intensify individual and
cooperative efforts to achieve sustained noninflationary expansion.
The G-5 announcement had an immediate and
strong effect on dollar exchange rates. In part,
the exchange market reaction reflected the fact
that the announcement was unexpected. More
importantly, market participants noted that the
initiative had come from the United States and
viewed it as a change in the U.S. government's
previously perceived attitude of accepting or
even welcoming the strong dollar. In addition,
the agreement was interpreted as eliminating the
likelihood that the Federal Reserve would tighten reserve conditions in response to rapid U.S.
monetary growth.
In these circumstances, the dollar dropped
sharply on the day following the G-5 announcement even before any official intervention occurred. With Tokyo closed for a holiday, the first
central bank operations were in Europe; the
dollar had already fallen against major foreign
currencies by the time the Bundesbank stepped
in to sell dollars at the afternoon fixing in Frankfurt for the first time in more than six months.
Later the same day, the U.S. authorities conducted their first operation during the period
under review, selling dollars against Japanese
yen and German marks in a visible manner to
resist a rise of the dollar from the lower levels.
During the next few days, there was some
skepticism in the market that the lower dollar
levels would be maintained, and a number of
commercial customers responded to the apparently attractive rates by buying dollars. This
phenomenon was most dramatic in Tokyo
where, when the market opened on Tuesday,
September 24, after a three-day weekend, demand for dollars by corporations and investors
spurred the largest turnover on record for spot
dollar-yen trading. The Bank of Japan then responded with massive dollar sales. Even though
these sales were partly offset by sizable normal
interest earnings, Japan's published foreign exchange reserves dropped nearly $1 billion in the
month of September. Following these and other
operations in subsequent days by the Japanese
and other G-5 central banks, market participants
came to believe that the authorities were firmly
committed to the joint effort, and upward pressures on the dollar abated. The U.S. authorities
sold a total of $199 million against German marks
and $262 million against the Japanese yen during
the last week of September and the first week of
October, operating repeatedly and visibly at
times when the dollar showed a tendency to rise
from the lower levels it had reached.
In the two weeks beginning October 7, the
dollar came under heavier upward pressure, reflecting strong commercial and investor demand.
While impressed with the central bank intervention, market participants still anticipated addi-
Foreign Exchange Operations
tional economic policy initiatives. The demand
for dollars was spurred when the annual World
Bank-IMF meetings in Seoul, Korea, passed
without any policy announcements. Also, some
statements, attributed to monetary officials at the
Seoul meetings, were viewed as expressing satisfaction with the extent of the dollar's decline and
suggesting that it would not fall much further.
Also contributing to upward pressure on the
dollar were growing perceptions that U.S. economic activity was picking up and that new
estimates of third-quarter growth of GNP would
show a substantial upward revision.
111
the upward pressure on the dollar relative to the
European currencies abated in response both to
the intervention operations and to a fading of
optimism about the U.S. economic outlook. The
upward pressure on the dollar vis-a-vis the Japanese yen, however, was slower to subside—even
though the government of Japan had announced
on October 15 a program to increase the rate of
growth of domestic demand. Accordingly, the
Desk's dollar sales in this two-week period,
while more modest in size, were concentrated in
yen. In all during these two weeks, the U.S.
authorities sold $482.9 million against Japanese
yen and $87 million against the German mark.
The demand for dollars, especially against the
German mark, intensified around mid-October
when commercial participants who had held off
meeting their dollar needs after the G-5 announcement reentered the market. But the dollar's rise was largely held in check by coordinated intervention by the United States and other
monetary authorities. On October 16, as the
dollar staged its strongest rebound since the G-5
announcement, the Trading Desk of the Federal
Reserve Bank of New York sold $797 million
against German marks and $67 million against
Japanese yen, and on the next day it sold additional amounts as the dollar eased back when the
upward revision of the U.S. GNP statistics failed
to live up to expectations. During the two weeks
after the September 22 communique, the United
States sold a total of $1,550.2 million against
German marks and $617.6 million against Japanese yen. These operations, some of which were
conducted in Far Eastern markets as well as in
New York, were closely coordinated with those
of the Bank of Japan and European G-5 central
banks in their own centers.
Late in October the Bank of Japan allowed
Japanese money market interest rates to drift
higher. It was then that the dollar began to
decline particularly sharply against the yen.
Many market observers viewed the Japanese
actions on interest rates as possibly representing
the first of a series of steps to be taken by the G-5
countries to lower interest differentials favorable
to the dollar. Despite denials by U.S., German,
and Japanese officials that any agreement existed
for such coordinated interest rate policy moves,
the idea persisted, and the dollar declined across
the board to close near its lowest levels of the
three-month period under review. It ended October about 13 percent below the level at which it
had traded in the week before the G-5 meeting in
terms of the Japanese yen, IOV2 percent down in
terms of the German mark, and 8 percent down
vis-a-vis sterling. Total intervention sales of dollars by the U.S. authorities, which were split
equally between the U.S. Treasury and the Federal Reserve, came to $3,198.7 million during the
three months. After September 22, the central
banks of France, Germany, Japan, and the Unit-
During the last two weeks of October, much of
2. Drawings and repayments by the Argentine central bank under special swap arrangements
with the U.S. Treasury
Millions of dollars, drawings or repayments ( - )
Outstanding
September
30, 1984
1984:4
1985:1
1985:2
1985:3
500 million
*
500
-230
-270
*
*
*
150 million
*
*
*
75
68
-71.4
-71.4
*
Amounts of
U.S. drawings on Treasury facilities
Data are on a value-date basis.
*No facility.
Outstanding
October 31,
1985
112 Federal Reserve Bulletin • February 1986
3. Net profits or losses ( - ) on U.S. Treasury and
Federal Reserve current foreign exchange
operations
Millions of dollars
Period
August 1, 1985-October 31,
1985
Valuation profits and
losses on outstanding
assets and liabilities
as of October 31,
1984
Federal
Reserve
0
-451.0
U.S. Treasury
Exchange
Stabilization
Fund
0
-202.7
Data are on a value-date basis.
ed Kingdom sold about $5 billion. The central
banks of other G-10 countries sold more than
$2 billion.
In other operations, Argentina repaid its drawing on its swap agreement with the U.S. Treasury established on June 19, 1985. The drawing
was repaid as scheduled in two installments of
$71.4 million each on August 15 and September
30. The payments coincided with Argentina's
drawings from the International Monetary Fund
under its new economic stabilization program.
Also completed at the same time were the repayments of $460 million of outstanding credits to
Argentina from 12 foreign central banks, representing their part of the cooperative bridging
facility established in June.
In the period from August through October,
the Federal Reserve and the Exchange Stabilization Fund (ESF) realized no profits or losses
from exchange transactions. As of October 31,
cumulative bookkeeping or valuation losses on
outstanding foreign currency balances were $451
million for the Federal Reserve and $203 million
for the Treasury's ESF. These valuation losses
represent the decrease in the dollar value of
outstanding currency assets valued at end-ofperiod exchange rates, compared with the rates
prevailing at the time the foreign currencies were
acquired.
The Federal Reserve and the ESF invest foreign currency balances acquired in the market as
a result of their foreign operations in a variety of
instruments that yield market-related rates of
return and that have a high degree of quality and
liquidity. Under the authority provided by the
Monetary Control Act of 1980, the Federal Reserve has invested $1,796.6 million equivalent of
its foreign currency holdings in securities issued
by foreign governments as of October 31. In
addition, the Treasury held the equivalent of
$2,672.1 million in such securities as of the end of
October.
•
113
Industrial Production
Released for publication December 13
Industrial production increased an estimated 0.4
percent in November following a downward revision of 0.4 percent in October. In November,
most market groups posted gains following declines in October. Over the last three months,
total industrial production has changed little. At
125.1 percent of the 1977 average, the index in
November was 1.4 percent higher than that of a
year earlier.
In market groups, output of consumer goods
increased 0.4 percent in November, reflecting a
rise of 1.4 percent in durable goods and a gain of
0.1 percent in nondurable goods. In November,
autos were assembled at an annual rate of 7.7
Ratio scale, 1977= 100
All series are seasonally adjusted. Latest figures: November.
114 Federal Reserve Bulletin • February 1986
1977 = 100
Percentage change from preceding month
1985
1985
Group
Oct.
Nov.
July
Aug.
Sept.
Oct.
Nov.
Percentage
change,
Nov. 1984
to Nov.
1985
Major market groups
Total industrial production
124.6
125.1
-.2
.9
-.1
-.4
.4
1.4
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment..
Defense and s p a c e . . .
Intermediate products..
Construction supplies
Materials
132.5
132.6
121.1
111.6
124.6
141.1
178.7
132.5
121.1
113.6
133.1
133.2
121.7
113.1
124.8
141.9
181.5
132.6
120.8
114.2
.0
.1
-.2
-.6
-.1
.4
.3
-.5
.2
-.5
1.1
1.1
1.1
2.5
.7
1.2
.9
1.0
1.8
.7
.1
.0
.2
-1.0
.6
-.6
1.1
.4
.0
-.4
-.4
-.5
-.5
-1.2
-.2
-.7
.7
.0
-.4
-.4
.4
.5
.4
1.4
.1
.5
1.6
.1
-.2
.5
2.5
1.9
1.8
-.2
2.5
1.5
11.1
4.2
4.4
-.4
-.3
-.5
.0
-1.6
.1
.5
.8
.1
-.4
.5
1.7
1.1
2.7
-3.0
1.7
Major industry groups
Manufacturing.
Durable
Nondurable
Mining
Utilities
127.5
127.9
127.0
106.0
113.4
128.1
128.9
127.1
105.6
114.0
.2
.2
.1
-1.7
-2.4
1.0
1.2
.8
-.4
-.3
-.3
-.7
.3
-.5
2.6
NOTE. Indexes are seasonally adjusted.
million units, only slightly higher than the strikeaffected rate of 7.6 million units in October.
However, lightweight truck production rebounded sharply in November. Output of home goods,
which includes appliances, rose an estimated 0.7
percent following a gain of 1.0 percent in October.
Production of business equipment rose 0.5
percent in November, with gains in most categories; October data, however, were revised downward. Output of defense equipment increased 1.6
percent following an upward revision of 0.7
percent in October. Materials output rose 0.5
percent in November following a decline in October; production of durable goods materials increased 0.7 percent, while nondurable materials
edged up 0.2 percent.
In industry groups, manufacturing output increased 0.5 percent in November. Durable manufacturing rose 0.8 percent, with output of iron
and steel rising again, while nondurable manufacturing changed little. Mining production declined 0.4 percent further in November; the
output of utilities rose 0.5 percent.
115
Statements to Congress
Statement by Paul A. Volcker, Chairman, Board
of Governors of the Federal Reserve System,
before the Subcommittee on Domestic Monetary
Policy of the Committee on Banking, Finance
and Urban Affairs, U.S. House of Representatives, December 12, 1985.
I appreciate the opportunity to discuss with you
questions relating to the operational problems
experienced by the Bank of New York on November 21 and the response of the Federal
Reserve Bank of New York. My remarks will be
relatively brief. Mr. Corrigan, President of the
New York Federal Reserve Bank, who was on
the scene and who is here with you today, is in a
position to review in full detail the specific facts
and the Federal Reserve's response to the events
as they unfolded.
The settlement problem, which resulted in the
loan of $22.6 billion to the Bank of New York,
was caused by a failure of the computer system
software. The effects in this instance were of
unprecedented magnitude, measured by the
amount of the overnight loan. But the effects in
terms of market performance and risk were well
contained.
It is also true that more limited computer
interruptions, either at private participants or at
one of the Reserve Banks, are not unusual. The
impact is typically small, reflected only in temporary delays of minutes or hours in operations or
in final settlement for a day's work. This time,
the interruption was much more prolonged, extending overnight. Consequently, potentially serious implications for the payments system and
for the securities markets were highlighted although they were avoided in this instance.
Since Mr. Corrigan will be reviewing in some
detail the particular circumstances surrounding
the Bank of New York (BONY) borrowing, I will
simply turn to some of the policy issues.
Like it or not, computers and their software
systems—with the possibility of mechanical or
human failure—are an integral part of the payments mechanism. The scale and the speed of
transactions permit no other approach. It is
therefore appropriate to ask what type of backup
systems—both hardware and software—and
controls should be required of participants in the
payments system, especially those participants
with potentially large exposures measured relative to assets, capital, and any other measures.
That question is one that must, in the first
instance, be faced by each participant. Those
participants, however, also face intense competitive pressures to minimize costs and cash balances. As participants in and regulators of the
payments system, the Federal Reserve has the
responsibility to see to it that there is a countervailing pressure to provide protection against
unacceptable risks for the system as a whole.
In approaching that question, the Federal Reserve has tried to identify and assess the risks
facing participants in the payments and settlement mechanisms, and to determine how these
risks interact and what can be done to limit them
in a cost-effective way.
For some years, the Federal Reserve has been
actively encouraging participants to adopt measures and policies to limit risk in payments and
settlement systems, and we are reinforcing our
own computer facilities, including backup systems. After long discussions with other interested parties, the Federal Reserve Board earlier this
year, in May, issued a policy statement addressing certain problems in this area. That statement
called upon participants in private funds transfer
systems—including the so-called Clearing House
Interbank Payments System (CHIPS), which
handles some one hundred thousand individual
international payments transactions, valued at
several hundred billion dollars, per day—to better evaluate and control risks inherent in largescale automated transfers. We also announced at
that time measures to control and reduce socalled "daylight overdrafts" on our own books—
116 Federal Reserve Bulletin • February 1986
overdrafts that occur when, in the course of a
day, a bank exhausts its reserve balance with a
Federal Reserve Bank.
In the last analysis, no mechanical system can
be entirely "fail-safe" and also be commercially
viable. The costs would simply be too high, and
the money and the Treasury securities markets
could not operate at the present level of efficiency. Nor can key clearing operations be easily
closed down in the middle of a day without
having a potentially severe impact on markets
and third parties, sowing confusion at the least,
and at the worst a chain reaction of losses. In
these circumstances, the importance of institutions having access to the discount window is
evident; in this instance, we could extend credit
with the knowledge that we were dealing with a
known and a reputable depository institution,
supervised by federal authorities.
The discount window advance to the BONY
was, by any measure, enormous, but the collateral in our hands—U.S. government securities
that had been delivered to us for the account of
BONY—was sound, and the Federal Reserve
Bank of New York also had further security from
BONY. The market could, and did, proceed with
its business, with minimal disruption. In contrast, had the Federal Reserve Bank of New
York refused to make payments on behalf of
BONY as it received government securities for
its account, other market participants would
have found themselves short of cash, other
banks and their customers presumably would
have been forced into overdraft and requests for
discount window assistance, and financial pressures would have appeared elsewhere.
A question about the interest rate charged
BONY for the use of the discount window in this
circumstance is entirely appropriate. I have been
assured, and Mr. Corrigan will explain more
fully, that the net result of all financial transac-
tions between the Federal Reserve and BONY
was to offset fully the "subsidy" arising from the
fact that the discount rate was below the federal
funds rate prevailing that day.
Those particular results were, however, fortuitous. At the same time, BONY did incur substantial expenses because it had to finance overnight some $25 billion of securities, upon which it
received no interest. Notwithstanding that circumstance, a special penalty rate, designed to
encourage better backup systems, when exceptionally large borrowing is caused by the institution's own computer problems may well be appropriate. Over time we will also be reviewing,
as already contemplated, our policies toward
tolerable levels of daylight overdrafts.
Your letter, Mr. Chairman, also asks whether
the Federal Reserve itself should play a large role
directly in clearing securities—as a priced service—to reduce the overall risks to the System.
That, frankly, is an area that we would be
extremely reluctant to enter, but we will be glad
to provide further analysis of the advantages and
disadvantages.
I believe it would be wrong to overdramatize
this incident. There was a serious operational
problem that illustrated some potential vulnerabilities in the clearing mechanism. But it is also
true that the problem could be dealt with effectively within our present arrangements—in that
sense the system did, in this instance, prove
"fail-safe." The overnight loan, huge as it was,
was fully secured, with an ample margin of
protection.
But the incident is also indicative of the relevance of our continuing efforts—and that of the
banks—to control risk in the payments system
and of effective supervision of the participants.
That work may seem mundane and tedious—that
is, until something goes wrong. Then, it is also
seen as essential.
•
Statements
Statement of E. Gerald Corrigan,
President,
Federal Reserve Bank of New York, before the
Subcommittee on Domestic Monetary Policy of
the Committee on Banking, Finance and Urban
Affairs, U.S. House of Representatives,
December 12, 1985.
I welcome this opportunity to appear before this
subcommittee to testify about the circumstances
surrounding the malfunction in the government
securities clearance mechanism that occurred on
November 21-22, 1985. Before turning to the
specifics of that episode, let me make a few
introductory remarks about (1) the workings of
the book-entry system for Treasury securities,
and (2) the structure and operation of the electronic network that permits the system to work
with the speed and efficiency to which we are all
so accustomed.
The most important operational characteristic
of the book-entry system is its "payment against
delivery" feature. That is, when bank A sells a
security from its own account or from a customer
account, the security is electronically delivered
to bank B, and the reserve account of bank B is
simultaneously and automatically debited to effect payment for the security. This feature of
simultaneous and automatic payment in "final"
funds is central to the efficiency and liquidity of
the market. However, it is because of this feature
of the system that it is common for large banks,
especially large clearing banks, to have "daylight
overdrafts" in their reserve accounts. And, it is
because of this feature that the Federal Reserve
has recently issued for public comment several
proposals aimed at controlling daylight overdrafts growing out of such securities processing.
These proposals, together with a more detailed
discussion of the workings of the book-entry
system, are summarized in appendix A. 1
The electronic network over which transfers of
securities and funds take place is a complex web
involving the Federal Reserve Banks (and their
branches), thousands of depository institutions
throughout the country, and thousands of customers of depository institutions. The electronic
linkages between these entities take several
1. The attachments to this statement are available on
request from Publications Services, Board of Governors of
the Federal Reserve System, Washington, D.C. 20551.
to Congress
117
forms, ranging from the conventional telephone
to direct interconnection by high-speed computer processors. While the network has thousands
of participants, the vast majority are not "critical" participants since operational or other problems at most institutions do not have the potential for major consequences to others and can
usually be worked around with relative ease.
However, there are several dozen very large
participants, certainly including the Reserve
Banks and most of our large commercial banks,
that constitute the "critical mass" of the system.
A major interruption in processing by any one of
these entities does have the potential for more
generalized problems elsewhere in the system.
Unfortunately, but inevitably, such disruptions do occur. For example, through December
5 this year, there have been 70 days on which the
closing of the securities wire has been extended
two hours or more. In rough orders of magnitude, about half these extensions were due to
hardware problems and half, to software problems; although in many instances both hardware
and software problems appear to have their roots
in very large processing volumes on particular
days. Viewed from a different vantage point,
about half the extensions were due to problems
in a Reserve Bank and half were due to problems
in the very large commercial banks. However, of
the 70 episodes, only 4 episodes required the
wire to remain open after 10 p.m., and before
November 21, none of the episodes produced a
situation in which the day's work was not completed.
THE EVENTS OF NOVEMBER
21-22
Against that background, the Federal Reserve
Bank of New York received a routine phone call
from Bank of New York at about 8:00 a.m.,
November 21, indicating that Bank of New York
was still in the process of completing its accounting and related work growing out of Wednesday's record volume of work and that it would
not be in a position to begin the processing of
Thursday's securities until late morning. In this
time frame there was no indication of a major
problem at Bank of New York. However, between 8:15 a.m. and 10:15 a.m. all the other
major market participants began their normal
118 Federal Reserve Bulletin • February 1986
work flows that entailed deliveries of securities
to Bank of New York—securities that, in the
normal course, Bank of New York would redeliver for payment to others. Because Bank of
New York was not in a position to process and
redeliver these securities, the overdraft in its
account began building the moment other banks
commenced operations Thursday morning.
At about 11:30 a.m., we first learned of a
software problem at Bank of New York. At that
time, the overdraft in Bank of New York's
securities account had reached almost $12 billion. While the overdraft position was large for
that time of day, it was not cause for undue
concern in a context in which there was still no
indication of a sustained outage at Bank of New
York. At about 2:15 p.m., a senior official at
Bank of New York called the Federal Reserve
Bank of New York with the first firm indication
that the problem might be much more serious
than had been previously thought. At that time,
the overdraft in Bank of New York's securities
account was in excess of $20 billion.
Between 2:15 p.m. and 4:00 p.m., it became
increasingly clear that the problem at Bank of
New York was of potentially major dimensions,
although prospects for recovering still seemed
reasonable. However, it was also in this time
frame that it became very clear that Bank of New
York's data base of account information and
individual transaction data had been damaged.
As events were to prove, it was the damage to
such records that severely complicated the recovery process at Bank of New York and, as a
practical matter, rendered unworkable several
schemes that might have permitted the problem
to be at least partially mitigated as the day
proceeded.
When, at about 4:00 p.m., I personally learned
of the apparent damage to data files at Bank of
New York, I immediately requested senior management at the Federal Reserve Bank of New
York to establish contact with top management
at Bank of New York to get their appraisal of the
situation. I also requested my associates at the
Federal Reserve Bank of New York to begin
drafting special loan agreements that could be
used if Bank of New York could not solve its
problem, thus necessitating a large loan at the
discount window. Having been through a number of broadly similar situations, I remained
hopeful that the problem would be solved, but
the fact of the damaged data files did concern me
greatly. In this time frame, Bank of New York
was indicating that it expected to be operational
in the period from 6:00 p.m. to 7:00 p.m., which,
while late, would still provide ample time to get
the day's processing completed while permitting
a comfortable margin of time for all parties to get
their end-of-day accounting and related work
completed for the next day's opening of business.
Between 4:00 p.m. and 8:30 p.m., numerous
conversations occurred between officials of the
Federal Reserve Bank of New York and Bank of
New York and, at about 8:00 p.m., the special
loan agreements were executed. At about 8:30
p.m., we were advised that Bank of New York's
data base problem had been solved and at 8:31
p.m. we received the first securities transfer
message of the day from Bank of New York. At
that time, Bank of New York's overdraft was
almost $30 billion. By 10:00 p.m. we had seen
only a trickle of securities transfers from Bank of
New York. And, it was at this time that other
problems and constraints began to crowd in on
the situation. These problems included concerns
about fatigue, technical constraints associated
with keeping systems operational around the
country after midnight, and the need to close
down the systems in time to permit all parties to
do the end-of-day processing to produce account
statements that would permit an orderly opening
of business on Friday. It is important to note
here that while problems somewhere in the system are not uncommon, we have never been
confronted with a situation that required the
system to be kept open past midnight.
Nevertheless, the Federal Reserve Bank of
New York decided to extend the processing
hours as long as possible, based on ajudgment as
to how close we could shave it, while keeping in
mind the time needed to do end-of-day processing. Thus, confronted with increasing evidence
of potential problems at other institutions around
the country, at about 12:30 a.m. the Federal
Reserve Bank of New York broadcast a message
nationwide that the securities wire would close at
1:30 a.m. and that the funds wire would close at
2:15 a.m. Bank of New York was notified of the
decision in advance and was told to use the
remaining time to process whatever it could and
Statements to Congress
also to go into the market and raise money to
reduce further its overdraft. However, given the
hour and because the operating system at Bank
of New York was, at best, limping along and
because it did not have such large credit lines
established, Bank of New York's debit position
in its securities account was reduced only to
$24.2 billion when the securities wire was closed
at 1:30 a.m. After the close of the cash wire at
2:15 a.m., Bank of New York requested and was
granted a discount window advance of $22.6
billion.
As it turned out, Bank of New York's estimate
of its overall position at 2:15 a.m. was incorrect
and, as a result, its reserve account was overdrawn by an additional $1 billion. Thus, the total
credit extended to Bank of New York by the
Federal Reserve Bank of New York was $23.6
billion.
Given the special loan agreements that had
been executed early Thursday evening, the decision to grant the discount window advance was
an easy one since the only alternative at that time
would have been an inadequately secured overdraft of $23 billion. In that most fundamental
sense, the important issues raised by this episode
are not so much the fact of the discount window
advance but rather its terms and, even more
importantly, the underlying circumstances that
permitted the buildup of the overdraft in the
reserve account in the first instance.
The absolute size of the discount window
advance is, of course, enormous by any standard. The loan is almost double the size of Bank
of New York and exceeds its capital by a factor
of about 23. It is far and away the largest
overnight loan ever made through the discount
window. This particular advance, however,
should not be contrasted with large discount
window advances to other institutions, such as
the extended credit that was provided to the
Continental Illinois Bank, since the circumstances in these cases are fundamentally different.
Under the terms of the special loan agreements, the loan was secured by all of Bank of
New York's domestic assets and by all of the
customer securities that they were empowered to
pledge for such purposes. We estimate that the
book value of the assets and securities available
to secure the loan was about $36 billion, thereby
119
providing a sizable margin of excess collateral.
Since the loan was adequately secured, the Federal Reserve Bank of New York was never
subject to risk of loss; and since the capital of
Bank of New York was not impaired, its solvency was not in question.
The loan was made at the basic discount rate
of 7.5 percent, which was 54 basis points below
the prevailing federal funds rate that day. Thus,
looking at the discount window advance itself,
Bank of New York's interest expenses were less
than a "market" rate would have produced.
However, when one takes account of all the
financial transactions between the Federal Reserve Bank of New York and Bank of New York
growing out of this episode, interest savings is
more than offset. Specifically, because of the
penalties assessed on Bank of New York incident to the overdraft of $1 billion in its reserve
account and because Bank of New York's problems prevented the delivery of certain securities
to the Federal Reserve Bank of New York,
which Bank of New York ended up financing but
on which we, in effect, received the interest
income, the net financial result of all transactions
between Bank of New York and the Federal
Reserve Bank of New York was in favor of the
Federal Reserve Bank of New York. But, this
result was by chance and leaves open the question of whether there should not be special terms
associated with discount window lending of the
nature encountered in this case.
As far as Bank of New York is concerned, the
overall episode entailed direct out-of-pocket
costs of about $5 million, which is about 7
percent of its earnings over the first three quarters of this year and, more importantly, is a
sizable percentage of the gross revenues that it
generates via its clearing activities. The cost to
Bank of New York reflects the fact that it was
required to finance almost $25 billion in securities overnight in a context in which the interest
income on those securities accrued to those who
were due to receive the securities. Indeed, those
individuals and institutions who bought the securities in question received a windfall since they
received interest for the day but did not incur any
cost of financing.
Against this background, the subcommittee
has raised a number of questions concerning the
appropriateness of such a discount window ad-
120 Federal Reserve Bulletin • February 1986
vance being made at the basic discount rate and
even larger questions as to whether, in the circumstances, the overall cost of the episode to
Bank of New York reflects the seriousness of the
situation taken as a whole. With regard to the
first of those questions, I believe the episode
does point to the need for a reconsideration of
the terms of discount window advances in situations like this.
The second question is, however, more difficult to deal with, for in the end it raises very
difficult value judgments. Looked at narrowly,
one can argue that the cost to Bank of New York
as referred to earlier is sizable, keeping in mind
that there are indirect, as well as direct costs. On
the other hand, it is also true that in the circumstances that prevailed on that day, Bank of New
York could not have funded itself any other way
than at the Federal Reserve nor could it have
repositioned or liquidated the securities in question. In the final analysis, therefore, the ultimate
backup implicit in access to the Federal Reserve
discount window supports the effective operation of the clearing system, and the question is
whether those operating and paying for the system in fact bear its true costs, including the cost
of adequate computer backup facilities. In this
regard, I would hope that this experience—
including its direct and indirect costs to Bank of
New York—would powerfully drive home the
point that the oft-repeated concerns about payments risk are not simply a matter of abstraction
but can be very real indeed and demand the
attention of all who operate and manage the
system, including the top management of financial institutions.
Of course, the saga of Bank of New York did
not end with the extension of the discount window advance at 2:15 a.m., Friday. Indeed, as the
normal business day opened later on Friday,
Bank of New York still was not operational. As a
result, by 11:00 a.m. it had accumulated a further
overdraft in its reserve account of $2 billion.
Faced with this situation, at about 11:30 a.m. we
temporarily stopped accepting securities transfers for the account of Bank of New York in an
attempt to stabilize the situation somewhat and
to see whether it was practical to prevent further
increases in the overdraft without causing excessive disruption in the market more generally. As
described in the next section, experience with
this temporary stoppage illustrated all too vividly
the potential for more generalized disorder that
can result from such a partial shutdown of the
market.
Fortunately, shortly thereafter Bank of New
York regained full operational capabilities and,
with only a few further glitches, we were able to
complete the day's business and close the securities wire at 8:00 p.m. and the funds wire at 8:45
p.m. Bank of New York had repaid its discount
window advance in full and had closed the day
with a comfortable positive balance in its reserve
account.
As noted earlier, the most basic issues raised
by this episode are not the discount window loan
made at 2:15 a.m., Friday. Rather the real issues
are (1) whether there was some alternate course
of action available during the day on Thursday
that would have prevented the overdraft from
developing in the first place, and (2) if not, what
can be done to mitigate against the reoccurrence
of a similar situation in the future. The remaining
sections of my testimony deal with the second
question, but allow me to say a few words about
the first at this time.
I have rigorously reconsidered, in retrospect,
the question of whether on Thursday, November
21 we could have, or should have, done anything
fundamentally different. My conclusion is that in
the particular circumstances that we faced there
was no reasonable alternative course of action
available. That is, given the following: (1) experience with generally similar problems in the past;
(2) Bank of New York's assurance that the
problem would be fixed; (3) the fact that Bank of
New York's overdraft was in excess of $15
billion by 12:30 p.m.; (4) the fact that the data
files at Bank of New York were damaged; (5) the
fact that the solvency of the bank was not in
question; (6) the fact that the opportunity to
secure the loan was there; and (7) the enormous
uncertainties, if not disruption, that could result
from a partial or a complete shutdown of the
market, I believe that our actions were prudent,
disciplined, and appropriate. In saying this, I
should also confess that in some respects we
were a bit lucky. The day in question was not an
end-of-reserve-period settlement date; it was not
a day on which there were other problems—
technical or otherwise—in the markets; and unlike the preceding day, it was not a day in which
Statements
the market was effecting settlement for billions of
dollars in trading in mortgage-backed securities
that had taken place over the previous month.
IMPORTANCE
OF
THE PAYMENTS
MECHANISM
I think it is important to step back from the
particular situation related to the Bank of New
York's recent clearance problem and to address
some of the broader questions related to the
operations of the payments mechanism. At the
outset, let me stress again the importance that we
attach to maintaining an efficient and a safe
payments system. In a manner of speaking, it
represents the financial equivalent of our interstate highway system, hooking together depository institutions of all sizes throughout the country, and through them financial and nonfinancial
firms throughout the world. However, because
of the value, the volume, and the speed of traffic
on the electronic version of the financial interstate highway system, the potential for disruptive chain reaction accidents is something that
we must take seriously.
Yet, there is a tendency to take for granted
that the payments system will always do the job
in a safe and an efficient manner. In fact, only
when there are highly visible disruptions to the
system does the public even take some notice.
And then the public does so typically only for a
passing few days. So one of the reasons why we
welcome these hearings, is the opportunity that
they provide to reinforce the importance that we
attach to keeping our payments system efficient,
reliable, and trusted.
Much of the focus today is on a particularly
vital element of that overall system; namely, the
clearance and the settlement mechanisms for
U.S. government securities. As this subcommittee well knows, the market for U.S. government
securities is the largest, the most efficient, and
the most liquid securities market in the world. It
is true that, in the first instance, the depth and
the resiliency of that market derive from the fact
that the full faith and credit of the United States
stands behind each U.S. Treasury security. But
that market also draws considerable strength
from the speed, the efficiency, and the low
transaction costs that are associated with sec
to Congress
121
ondary market transfers over the book-entry
system. These efficiencies contribute importantly to the liquidity of the market, to the attractiveness to investors of Treasury securities, to the
Treasury's ability to carry out debt management
operations, and to the Federal Reserve Bank of
New York's ability to carry out Federal Reserve
System open market operations.
Perhaps never has the need for an efficient
market been more apparent than over the past
month when, as a result of repeated delays in
congressional passage of a permanent debt ceiling extension, the Treasury has had to do the
following: (1) announce plans on two occasions
to auction for same day delivery and settlement
new issues of Treasury bills, one of $22 billion
and another of $15 billion, all of which had to be
sold, delivered, and settled within a period of
hours, and (2) compact into a period of 11
business days in November the auction and
settlement of more than $100 billion in bills,
notes, and bonds.
It is difficult to imagine how debt management
operations of this size would have been possible
without the benefit of a highly efficient clearing
and settlement system. Moreover, while these
examples are somewhat unusual, just citing figures on the normal value and volume of government securities that clear daily through this system—averaging about $200 billion and 27,000
items—underscores the need for high-speed, efficient, and reliable clearings. All participants in
the market—including the dealers, investors, the
Federal Reserve, and the Treasury itself—have
come to depend on this system. This dependence
is not limited just to the efficiency and the
availability of the system. Rather, this dependence extends in an ultimately crucial way to its
safety and integrity as well.
If I ever had any doubts about this system—
and I do not think I have—they were laid to rest
on the second day of the Bank of New York's
clearance problem. As I noted earlier, on that
day we concluded that it was necessary to establish a temporary stoppage on securities transfers
being sent over the system to the Bank of New
York. The purpose of this stoppage was to
attempt to stabilize the situation somewhat and,
frankly, to see also whether it was practical to
prevent further increases in the Bank of New
York's overdraft on our books without causing
122 Federal Reserve Bulletin • February 1986
excessive market disruption. Operationally, this
stoppage meant that holders of government securities who had contracts to deliver those securities against payment to the Bank of New York
for one of its customers were temporarily unable
to make delivery under those contracts. And
those firms that tried to send securities to the
Bank of New York—including those firms whose
computer systems were preprogrammed to make
such deliveries once the securities were available—would have had the transfers rejected.
This temporary stoppage was only in effect for
about one and a half hours, and it did not become
generally known in the market until about one
hour after it was put in place. Yet, even in this
short period of time, the result was a backup in
the willingness and the ability of some other
market participants to transfer securities among
themselves. This situation was especially true for
other large clearing banks who were suddenly
faced with the task of shutting off a segment of
the flow of preprogrammed outgoing work in
highly automated systems. They also found
themselves in a position of potentially accumulating large overdrafts on our books since they
could continue to receive transfers but were
blocked from sending to a key, large-value end
point. Perhaps most importantly, there was also
some evidence that investors were beginning to
seek to break trades and financing transactions
with dealers who were serviced by the Bank of
New York. For those investors selling securities
to such dealers or seeking financing from them,
there was the sudden prospect that they could no
longer count on making delivery against automatic payment, as well as the uncertainty as to
whether they would be held financially responsible for a failure to make good delivery.
Fortunately for all concerned, the Bank of
New York was able to restore normal operations
within a short time after the stoppage was put in
place. So we did not have to confront a general
stoppage in market activity or clearings that day.
Yet all this action did was raise the specter of
potentially larger and more disruptive problems
should for any reason market participants suddenly have to confront doubts about their ability
to clear government securities over this system
in a safe, assured, low-risk manner. So what I
conclude from this experience is that, at least as
things now exist and without potentially major
changes in market practices and clearing techniques, it is unrealistic to think of "disconnecting" a major participant except in circumstances
that, in the end, might require closing the market
as a whole.
All this experience naturally raises questions
as to our current perspective on the broader
issues related to payments system risk exposures. On that score, I think it is fair to say that
the Federal Reserve has consistently been out
front in calling attention to these issues and to
the need for initiatives to better control these risk
exposures. Indeed, in the early going, ours was
something of a lonely voice on these issues.
More recently, the importance of these issues
has been recognized by a broad cross-section of
bankers, supervisory authorities, and others with
an interest in the strength of our financial system. But, even in the framework of this more
constructive environment, the subject still has an
aura of abstraction. We hope that the reality of a
loan of $22.6 billion will instill at least some
"religion" into the remaining agnostics on payments system risk.
Against that background, allow me to suggest
several broad elements of concern that, in my
judgment, should remain central to our thinking
as we seek to further enhance the reliability of
the payments system. These points of emphasis
are not new, but, if anything, our recent experiences only serve to strongly reinforce their value
as a framework for addressing payments system
risk issues:
1. Operating the nation's payments system is
an intrinsic function of banks and the central
bank that is inexorably and irreversibly tied to
the other functions of both. As an extension of
this point, I am not at all sure that we can
continue indefinitely to process an ever-increasing volume of payments against an ever-decreasing level of cash balances in the system.
2. Operating the payments system is not limited to pushing paper or to computer blips—as
important as these processes are—but fundamentally entails continuous extensions of credit
and hundreds of credit decisions a day. The
"back office" must be incorporated into the
"front office."
3. All participants in the major payments system have public responsiblities, including the
Statements to Congress
responsibility to take the larger, longer look at
the manner in which their decisions, their systems, and their behavior add to or detract from
not just the speed and efficiency of the system
but also its strength and integrity.
4. And, since no system can ever be completely fail-safe, in either a credit or operational
sense, all major participants have a collective
interest in pursuing initiatives to lower the aggregate risk in the system and to provide the means
to continue operations despite a problem at any
major link.
Let me expand briefly on each of these points
and what they imply.
For some time now, I have emphasized what I
regard as the "special" functions that are performed by banks in our financial system and our
economy generally—functions that justify the
existence of the public safety net of federal
deposit insurance and central bank discount window support and that warrant the regulation and
the supervision of banks and companies that own
and operate them. Operation of the payments
system is one of those special core functions.
From my perspective, this principle is firmly
established in our traditions, if not laws, but is
increasingly challenged by developments in the
marketplace and, if I may be frank, by lack of
developments in the Congress. The linkage between direct access to operations of the payments system, access to the banking safety net,
and acceptance of the regime of banking regulations and supervision is central to efforts to
ensure the public interest in the strength and the
integrity of the payments system.
Just as I believe that you cannot separate
operations of the payments system from the
functions of banks and the central bank, I also
feel that you cannot separate processing of large
dollar payments and clearings from the credit
extension process. The present operations of the
book-entry clearing system amply demonstrate
this point. As I have noted earlier, perhaps the
single most important operational characteristic
of that system is the ability to make delivery of
securities against simultaneous receipt of final
payment. This same feature often results in the
clearing bank in effect extending daylight credit
to its customers and in Reserve Banks extending
such credit to the clearers. To be sure, that credit
123
can be viewed in each case as supported by the
underlying U.S. government securities, but it
still constitutes credit. Most other large dollar
payment transactions do not have the built-in
protections provided by the book-entry system
as it pertains to payment against delivery of U.S.
government securities. Thus, if credit decisions
are central to these transactions, they can only
be even more important in the case of other large
dollar payment transactions.
If, as I maintain, provision of large dollar
payments and clearing services fundamentally
entails managing credit exposures, then an important aspect of controlling payments risk is
improved programs to address these credit exposures. For our part, we have been active on at
least the following five fronts in this regard:
1. We have forced a broad-based dialogue on
the general subject of payment risk, and we are
now at the center of efforts to implement a
program to control large dollar payments risk.
2. We are working closely with other bank
supervisory agencies to promote strong internal
bank policies and controls over settlement risk.
3. We are further stepping up our own bank
examination efforts in the reviews of payment
risk and clearing operations. In this regard, the
Board's recently announced initiative to expand
the frequency and the scope of examinations of
large banks will enable us to do some in-depth
target examinations of clearing operations without foregoing a regular full scope safety and
soundness review of the overall bank.
4. We are strengthening our internal systems
and back-up capabilities on FedWire to monitor
developments and to control them as the need
arises.
5. We are expanding still further our analytical
and empirical efforts to better understand the
workings of financial markets and institutions so
that we can be better equipped to head off
problems as well as to respond to problems if and
when they arise.
As a general matter, bankers and their customers have also become much more attentive to the
need to monitor and control credit exposure to
payments risk. This heightened awareness to risk
is a constructive development, but in a highly
competitive environment, awareness does not
124
Federal Reserve Bulletin • February 1986
easily translate into concrete actions to limit risk
across the board. And, at the other extreme,
there is always the danger that reactions can go
too far and lead to greater defensiveness or steps
at self-protection that can harm the functioning
of the system as a whole. So even on this front
we have to find the right balance between controlling credit exposures and not shutting off the
flow of credit needed to keep the system functioning.
While much of our public emphasis and that of
the industry has been on the issues of credit risk,
we have not been ignoring the need to strengthen
the operational systems that are used for large
dollar clearings and settlement. The case for
effective back-up systems is clear, but a vision as
to what constitutes "effective" is somewhat elusive. At one time, the term "effective" implied
that every major participant had redundant computer processors and communication lines, together with the ability to shift quickly from its
main system to its back-up processor if a problem occurred. Then, when it became apparent
that smooth, uninterrupted electrical power
could not be taken for granted, various forms of
sources of back-up power became more the rule
than the exception. Still later, as the volume and
the value of transactions grew exponentially,
finely tuned elements of contingency planning
and exceptions management began to take hold
in a context in which it was increasingly recognized that the implications of major and extended
outages somewhere in the system—including at a
Federal Reserve Bank—could be highly disruptive.
As impressive as these developments were,
experience shows that more effort is needed. We
must, for example, improve our ability to diagnose and respond to problems whether of the
software variety or of some form of hardware or
other physical disruption to a data communications center that could knock out both a main
system and a back-up system, which are typically located in the same location. Within the Federal Reserve, we are developing remote site backup arrangements at Culpeper, Virginia, to
support our Fed Wire system. But, in my personal view, even this arrangement may not be adequate to assure sufficiently quick recovery from
any major outage at the New York Reserve
Bank. For this reason we have, for many
months, been considering the costs and the benefits of establishing a fully equipped back-up
center within convenient reach of our main office. While such a facility would be very expensive, it seems to me that we must be prepared to
give serious consideration to such an arrangement—despite its costs.
Finally, while I have no doubt that more can,
and will, be done by individual institutions to
strengthen their operations and to improve credit
controls, it is unrealistic to expect that we will
ever achieve a fail-safe payments system in either an operational or a credit sense. To use the
episode of Bank of New York as a case in point,
it is not at all clear that even the most elaborate
and expensive back-up system would have materially altered its capacity to respond to the particular problem once the apparent limitation in the
software was in place since the same software
would have been in place at a back-up facility.
To me this underscores the collective interest
that all participants in the payments and clearing
systems have in exploring ways to limit the
impact of operational disruptions or credit problems on the system. As far as the operational side
is concerned, a common goal could be to have in
place effective operating techniques to bypass
any one link in the system and thus to permit the
continued functioning of at least the largest payments despite an extended operational outage at
any one participant. In terms of the credit side,
this procedure has to translate into a collective
willingness to explore changes in clearing techniques and changes in market practices that
would help reduce aggregate credit risk in the
clearing system without impairing the smooth
functioning of the markets that those systems
serve. Neither of these goals will be easily
achieved. On the operational side, further costly
investments in back-up arrangements will be
required. On the credit side, achieving the goals
means rethinking market practices that have
evolved over many years and that should not be
changed without careful consideration of possible unintended side effects.
SUMMARY AND
CONCLUSIONS
In the course of the preceding elements of this
testimony, I have referred to a number of steps
that seem, to me, to warrant particular attention
Statements to Congress
125
as we seek to provide a higher level of assurance
that episodes of the nature experienced on November 21-22 are not repeated. In the very near
term, the priorities seem to lie in four areas: (1)
considerations relating to the terms under which
discount window credit is extended in similar
situations, (2) the development of better techniques to secure securities-related daylight overdrafts, (3) efforts to explore possible opportunities whereby dealers and others may be able to
bypass operational blockages even at a major
institution, and (4) efforts to press ahead with
stronger back-up facilities on the part of the
Federal Reserve and other major participants
even though such facilities may be quite costly.
In a somewhat larger time frame, we must also
look with care for opportunities to alter market
practices and incentives in ways that can
strengthen reliability and reduce risk while at the
same time preserving the liquidity and the efficiency of the market. That change will not be
easy, but it must be done.
•
Statement by William Taylor, Director, Division
of Banking Supervision and Regulation, Board
of Governors of the Federal Reserve System,
before the Subcommittee on Commerce, Consumer, and Monetary Affairs of the Committee
on Government Operations, U.S. House of Representatives, December 12, 1985.
banks were 26 percent and 37 percent respectively, while the percentage for savings and loan
associations exceeded 90 percent. Moreover, the
real estate loans of state member banks have
generally expanded at a slower pace over the
current decade than have such loans at other
depository institutions. Indeed, the growth of
real estate loans at state member banks was
slower than the expansion of other components
of their loan portfolios, so that the ratio of real
estate loans to total loans has edged down slightiy.
But while real estate loans would thus appear
to pose less of a potential problem in the case of
state member banks, we nonetheless agree that
there is a good reason at this time for the Federal
Reserve as well as the Congress to be concerned
with conditions in the real estate market, with
the policies and practices that have been, and are
being, followed by financial institutions in making real estate loans and with the procedures that
the federal agencies are following in supervising
such activities.
As this committee is well aware, important
areas of the nation's real estate market are
currently experiencing serious difficulties and
are creating problems of varying degrees of severity for our financial institutions. The most
dramatic situation can be found in the market for
farmland, where, given the generally depressed
condition of our farm sector, prices in many
areas have dropped very sharply over the past
couple of years. As a result, landowners have
generally experienced a substantial decline in
their wealth, and, unfortunately, in all too many
cases have been unable to service their mortgage
indebtedness. Thus, financial institutions, too,
have incurred large losses.
I appreciate the opportunity to appear before this
committee today to discuss the impact that faulty
and fraudulent real estate appraisals may be
having on federally insured depository institutions. In your letter you requested that the
Federal Reserve respond to a number of questions on the policies and the procedures that it
follows in reviewing property appraisals for real
estate loans and on our experience regarding the
extent to which such appraisals have been found
to be inaccurate, either because of faulty procedures or fraud. The Federal Reserve's answers
to these questions—which in the case of certain
questions incorporate, as you requested, the
responses of the Federal Reserve Banks of Atlanta, Dallas, San Francisco, and Chicago—are
presented as an attachment to my statement. 1
Let me begin by noting that real estate loans
constitute a smaller proportion of the loan portfolios of state member banks than is the case for
other groups of depository institutions. As of
June this year, real estate loans accounted for
approximately 16 percent of the total loans of
state member banks; in comparison, the percentages for national banks and state nonmember
1. The attachments to this statement are available on
request from Publications Services, Board of Governors of
the Federal Reserve System, Washington, D.C. 20551.
126 Federal Reserve Bulletin • February 1986
Serious strains have also developed in the
commercial real estate markets, particularly for
office buildings, in many cities of our country.
Construction of office space has been outpacing
demand for several years now, and office vacancy rates have been rising. These developments
have been most apparent in a number of the
sunbelt cities that experienced boom conditions
in the late 1970s and early 1980s, but also can be
increasingly found in a number of other cities.
Moreover, incoming data continue to suggest
that the situation in many cities may be getting
worse as construction of new office space continues to outpace the rate of its absorption. Thus
vacancy rates have continued to rise, in many
cases to levels unprecedented in the post World
War II period, and developers have been unable
to get their buildings leased up sufficiently either
to promote their sale or to meet the servicing
requirements on construction loans. As a consequence, lenders in all too many cases have either
become unexpected owners of buildings with
much empty office space or have found it necessary to renegotiate loans to lengthen their maturity and to provide additional funds to support the
leasing efforts of the developer.
Relevant to today's hearing, the important
question that needs to be answered with regard
to these conditions is the extent to which they
can be attributed to faulty or fraudulent property
appraisals. I have little doubt that there have
been cases in both the market for farmland and
for commercial properties in which loans have
been made based on fraudulent or faulty appraisals. Human nature being what it is, that situation
would seem to be unavoidable. But I do not
believe that the problems are primarily or even
largely traceable to such appraisals. Farmland
appraisals that now appear to be much too high,
for example, were made when there were boom
conditions in the market, and it was a common
view that land prices would continue moving up
as they had moved over a long preceding period.
One cannot expect those appraising property to
be better at forecasting a sharp change in economic conditions than others in the marketplace.
Much the same kind of economic dynamics
accounts for the fact that property appraisals in
the commercial real estate market also now
appear unrealistically high in many cases. The
long period of inflation that was recorded in the
late 1960s and throughout the 1970s affected, and
to some degree continues to affect, the thinking
of participants in this market. Over that period
the general experience was that, if not seriously
flawed in design or construction, real estate
projects would eventually prove to be profitable.
Thus, the view developed—and still continues to
be expressed today—that while a newly constructed building might remain considerably underoccupied for a time, eventually inflation along
with growth of the local economy would assure
its sale at a price that provided a profit for the
developer as well as the full repayment of loans
that financed the project. But while widely held,
this view has clearly been proved wrong as
inflation has been brought under control and as
growth of local economies has slowed. Here
again, however, the failure of appraisals to hold
up appears traceable not primarily to fraud or to
faulty procedures but to the sharp shift in market
conditions that was unexpected by appraisers as
well as a great many other market participants.
Having offered that general judgment, however, let me go on to say that it is now necessary for
developers, lending institutions, investors, and
appraisers to recognize that economic conditions
have clearly changed, and to incorporate that
fact into the assumptions on which property
values are based. It is my understanding that
such a process is beginning to be clearly evident
in the appraisals that are being made for new
construction projects. That process, I must say,
appears to have taken a really long while, but
experience suggests that expectations—which
are generally based heavily on extrapolation of
past trends—are slow to change. Besides influencing appraisals for new property, however, it
is equally important that the shift in current
economic conditions and the outlook for future
conditions be properly taken into account in
reviewing appraisals that were formulated at
earlier times on older properties under more
optimistic conditions. More specifically, it is
necessary for lending institutions observing that
a building has failed to lease up or is leasing up
only after substantial concessions not to continue to rely on an appraisal based on the assumptions that more favorable conditions would prevail. That is to say, while an appraiser and a
banking institution should not be expected to
"call" a marked turn in economic conditions, it
Statements to Congress
is most reasonable to expect that, once it is clear
that such a turn has occurred, it be quickly
recognized.
There is, of course, as I have indicated, a gap
between when circumstances first change and
when that change begins to significantly offset
the expectations of market participants. There is
good reason to expect, then, that as time goes
by, institutions will become increasingly inclined
to revise overstated appraisals to make them
more consistent with conditions.
To speed that process, however, and thus
achieve a clear picture of the true state of real
estate loan portfolios, the federal banking agencies have developed guidelines that will work to
formalize and help promote uniformity in procedures followed in classifying problem real estate
loans. An important element of these guidelines
is that the appraisals of property underlying real
estate loans will be carefully questioned, and
when it appears that the property is overappraised, the bank will be required either to adjust
down the appraisal immediately or to have the
property reappraised by an independent appraiser. Obviously when this process results in a
reduction in the estimated value of the property
supporting a loan, it may be necessary for the
examiner to classify the loan, to require the bank
to add to its loan-loss reserve, and in some cases
to require the recognition of loss, when appropriate. The Federal Reserve is now in the process of
127
field testing these guidelines with the intention of
eventually adopting them.
Besides this initiative, the Federal Reserve is
undertaking a program to enhance its general
supervisory activities, and this program will have
important implications for identifying and correcting problems in the real estate loan portfolios
of the banking organizations that we supervise. I
will not take the time to recount that entire
program here today, but I would like to report
that one of its important elements will be to
generally increase the frequency by which examinations of state member banks and inspections of bank holding companies are conducted.
We hope, and expect, to enlist the participation
of state banking departments in carrying out this
new frequency, but in all cases it is our intention
to ensure that all state member banks and all but
the smallest bank holding companies are examined at least once each year. Moreover, in conducting these examinations and inspections we
intend to intensify our scrutiny of loan portfolios,
including real estate loans.
As I have reviewed, there are serious problems in certain areas of the real estate market
today that are posing problems of greater or
lesser severity for depository institutions. I
would conclude by saying that the Federal Reserve is taking steps that we deem appropriate
and necessary to address these problems.
•
128
Record of Policy Actions of the
Federal Open Market Committee
MEETING HELD ON NOVEMBER
1. Domestic
Policy
4-5,
1985
Directive
The information reviewed at this meeting indicated that growth in real GNP, which had picked up
in the third quarter from the relatively slow pace
in the first half, appeared to be continuing at a
relatively modest rate. Broad measures of prices
and wages appeared to be rising at rates close to
or somewhat below those recorded earlier in the
year.
Total retail sales increased considerably further in September, after a strong rise in August.
But the gains in both months were attributable
primarily to a surge in auto sales occasioned by
financing incentive programs during the period.
As expected, the surge proved temporary, and
sales of domestic automobiles dropped to an
annual rate of 6lA million units in October from
1VA million in the preceding month. Outlays for
discretionary purchases other than autos were
generally lackluster in recent months; spending
at general merchandise and apparel stores and at
furniture and appliance outlets, for example,
changed little on balance in the third quarter. But
with overall spending boosted by the transitory
spurt in auto sales, the personal saving rate
dropped to less than 3 percent in the third
quarter—an extraordinarily low rate historically.
Total nonfarm payroll employment rose about
415,000 in October, substantially above the average monthly increase of 225,000 posted over
preceding months of the year. To some extent,
however, the October gain balanced out a weaker-than-usual advance in September; the average
increase over the two months was 275,000. Service industries and finance and trade establishments continued to record job gains during the
two-month period, while manufacturing employment edged down further. In October, the length
of the factory workweek remained relatively high
at 40.7 hours, and factory overtime rose slightly.
The civilian unemployment rate was unchanged
at 7.1 percent.
The index of industrial production edged down
in September and increased at an annual rate of
only 1.1 percent during the third quarter. Nearly
two-thirds of that rise was attributable to production of motor vehicles. Output of defense and
space equipment and of construction supplies
remained strong while production of durable
goods materials and energy materials declined
over the period. The capacity utilization rate for
total industry fell 0.3 percentage point in September, reversing the August increase. At 80.2 percent, the rate was about I V 2 percentage points
below its year-earlier level and its average for the
1967-84 period.
Total private housing starts fell in September
and in the third quarter as a whole, with declines
registered in both the multifamily and singlefamily sectors. But sales of new homes were
higher during the quarter and sales of existing
homes were up more than 10 percent on average.
Moreover, newly issued permits for residential
construction rose for the fourth consecutive
quarter and a recent survey of consumer sentiment showed that favorable attitudes toward
homebuying reached their highest level on record.
Incoming information generally suggested a
leveling of business capital spending. Shipments
of nondefense capital goods fell in September
and were essentially flat for the third quarter as a
whole. However, business spending for motor
vehicles advanced sharply in the quarter and, on
balance, has accounted for virtually all of the rise
in business equipment expenditures this year.
New orders for nondefense capital goods, excluding the volatile components of aircraft and
parts, rose about PA percent in the quarter but
on balance have shown little change thus far in
1985.
129
Over the first three quarters of 1985, most
aggregate measures of inflation have evidenced
some slowing from the rates posted in 1984,
mainly reflecting downward pressures on prices
of food and energy items. In September, the
producer price index for finished goods fell 0.6
percent, leaving the index about unchanged on
balance since the beginning of the year. The
consumer price index rose 0.2 percent in September for the fifth consecutive month, down
somewhat from the average monthly increase
earlier this year and during 1984. On the wage
side, the index of average hourly earnings rose at
an annual rate of only 1 percent in the third
quarter and 2Vi percent over the first nine
months of the year, compared with an increase of
about 3 percent in 1984. However, the employment cost index, which takes account of nonwage benefits and salaries of white-collar workers as well as hourly wage earners, has risen at
an annual rate of about 43A percent thus far this
year, a little above last year's rate.
The trade-weighted value of the dollar against
major foreign currencies had declined about 1 Vi
percent further on balance since the Committee's
meeting on October 1, bringing its net depreciation during the period after the G-5 announcement on September 22 to nearly 8 percent.
Intervention sales of dollars by U.S. and foreign
authorities were relatively large. With respect to
individual currencies, the dollar's depreciation
had been considerably greater against the Japanese yen than against major European currencies. Preliminary data on U.S. merchandise trade
for the third quarter, which need to be interpreted with an extra amount of caution in light of
uncertainties in the statistical reports, suggested
that imports rose somewhat more than had been
estimated earlier and that the trade deficit may
have widened slightly in the quarter.
At its meeting on October 1, 1985, the Committee had adopted a directive that called for
maintaining the degree of pressure on reserve
positions sought in the weeks before the meeting.
That action was expected to be consistent with
growth of both M2 and M3 at annual rates of
around 6 to 7 percent for the period from September to December. Over the same period,
growth in Ml was expected to slow markedly—
also to an annual rate of 6 to 7 percent—and even
slower growth would be acceptable in the con
text of satisfactory economic performance, given
the very rapid expansion in Ml in other recent
months. The members agreed that somewhat
greater or lesser reserve restraint would be acceptable over the intermeeting period, depending
on the behavior of the monetary aggregates and
taking account of appraisals of the strength of the
business expansion, the performance of the dollar in foreign exchange markets, progress against
inflation, and conditions in domestic and international credit markets. It was understood that
policy might be implemented with somewhat
more flexibility than usual over the relatively
short intermeeting period, given the uncertainties associated with particularly sensitive conditions in the foreign exchange and other markets.
The intermeeting range for the federal funds rate
was retained at 6 to 10 percent.
Ml appeared to have changed little on balance
in October and may have declined slightly after
several months of rapid expansion; but it remained well above the range set by the Committee in July of 3 to 8 percent at an annual rate for
the period from the second quarter to the fourth
quarter of the year. M2 and M3 apparently grew
sluggishly during the month, reflecting a moderation in their nontransactions components as well
as the weakness in Ml. As a result, by October
M2 apparently had moved to a level a bit below
the upper end of its annual range, while M3 was
still near the middle of its long-run range. Expansion in total domestic nonfinancial debt had
remained relatively rapid and continued to be
somewhat above the upper end of its monitoring
range for the year.
Growth of total reserves slowed in October to
an annual rate of about AVi percent, in association with the marked deceleration in transactions
accounts. Nonborrowed reserves rose somewhat
more rapidly than total reserves, however, as
borrowing from the discount window fell from a
temporarily inflated level at the end of September that was related to disruptions from the
hurricane on the East Coast and to end-ofquarter statement date pressures. Over the full
reserve maintenance period ending October 23,
the level of adjustment plus seasonal borrowing
averaged $470 million.
The weekly federal funds rate generally moved
in a range of about 77/s to SVs percent and
averaged 8 percent for the five weeks preceding
130 Federal Reserve Bulletin • February 1986
this meeting. Interest rates on short-term Treasury securities were up about 10 to 20 basis
points over the period since the October 1 meeting of the Committee, while rates on private
short-term market instruments were little
changed to down somewhat. Most long-term
rates fell about 25 to 35 basis points. The average
rate on new commitments for fixed-rate conventional home mortgage loans declined about 15
basis points to around 12 percent.
The staff projections presented at this meeting
suggested that growth in real GNP would continue at a relatively modest pace for the remainder
of this year and throughout 1986. The staff continued to expect the average unemployment rate
to change little over the projection horizon, and
the rate of increase in prices to remain close to
that experienced in the past few years.
During the Committee's discussion of the economic situation and outlook, members commented that, on the whole, the latest information
suggested a more sluggish economic performance than had been indicated earlier. Nonetheless, several members felt that further economic
expansion broadly in line with the staff forecast
remained a reasonable expectation for the year
ahead. In general, the members did not anticipate that any major sector of the economy would
provide a strong fillip to the expansion, but they
thought further growth was likely to be sustained
by at least modest gains in several key sectors of
the economy. At the same time, a number of
members gave considerable emphasis to possible
harbingers of a very sluggish economy. One
member referred to the risk that the expansion
itself might falter if persisting problems and
financial strains in some sectors of the economy
were not contained. The members recognized
that under current circumstances their forecasts
were subject to a great deal of uncertainty, and
particular reference was made to the outlook for
legislation to reduce the federal budget deficit
and to the behavior of the dollar in foreign
exchange markets.
In the course of the Committee's discussion, a
number of members observed that consumer
spending was likely to continue to expand but
that its growth would be constrained by prospectively limited increases in real disposable income, relatively high consumer debt burdens,
and a possible rise in the saving rate from its
abnormally low third-quarter level. Views on the
outlook for housing differed to some extent, with
some members emphasizing the reduced levels
of mortgage rates and current activity in resale
markets while others stressed the negative implications of generally tighter lending standards.
Growth in business fixed investment had already
slowed markedly and the possibility of further
weakening was suggested by a number of current
indicators, including recent surveys of business
spending plans and reports of deteriorating business sentiment in some parts of the country.
With a ready availability of financing, commercial construction remained strong in many areas
and might continue to hold up for a time. However, at least some types of construction such as
office buildings appeared to be vulnerable to
excess capacity and to possible changes in tax
laws relating to real estate investments. Though
agricultural conditions varied in different parts of
the country, members commented that there
were few, if any, signs of general improvement,
and growth of income in agriculture and associated industries was considered likely to be weak
over the next few quarters.
The outlook for foreign trade was viewed as
especially difficult to discern. A reduced value of
the dollar could be expected to foster improvement in the trade balance over time, with favorable repercussions on domestic economic activity and lessened incentives to close domestic
production facilities or to relocate them abroad.
The extent of progress in lowering the trade
deficit over the year ahead was highly uncertain,
however, and would depend not only on the
performance of the dollar but importantly also on
appropriate economic policies, including satisfactory progress in reducing federal budgetary
deficits. Over time, stronger economic growth in
other industrialized countries and more open
markets abroad would also be needed.
While it was believed that the drop in the
dollar since the G-5 meeting would tend to exert
a positive effect on the economy by relieving
pressures on export and on import-sensitive industries, it was also pointed out that an unduly
large and rapid depreciation could have the potential for unsettling economic consequences under present circumstances. One member commented that rising prices were already being
reported for a few imported materials, apparent-
Record of Policy Actions of the FOMC
ly as a consequence of earlier reductions in the
value of the dollar. The members were also
concerned that, at a time when the deficit in the
U.S. current account continued to require large
net inflows of funds from abroad, any considerable reduction in the willingness of investors to
accumulate dollar assets could exert upward
pressure on domestic interest rates as well, with
damaging implications for interest-sensitive sectors of the domestic economy and for several
developing countries burdened by international
debt problems. Time was required to make, in an
orderly way, the adjustments in domestic spending and production that would be needed if the
balance of trade were to move toward a more
sustainable level. Those adjustments would be
greatly facilitated by a substantial reduction over
time in the federal budget deficit and could be
disruptive without it.
At its meeting in July the Committee had
reviewed the basic policy objectives that it had
established in February for growth of the monetary and credit aggregates in 1985 and had set
tentative objectives for expansion in 1986. For
the period from the fourth quarter of 1984 to the
fourth quarter of 1985, the Committee had reaffirmed the ranges for the broader aggregates set
in February of 6 to 9 percent for M2 and 6 to 9Vi
percent for M3. The associated range for total
domestic nonfinancial debt was also reaffirmed
at 9 to 12 percent for 1985. With respect to Ml,
the base was moved forward to the second
quarter of 1985 and a range of 3 to 8 percent at an
annual growth rate was established for the period
to the fourth quarter of the year. For 1986 the
Committee had agreed on tentative monetary
growth objectives that included reductions of 1
percentage point in the upper end of the Ml
range and Vi percentage point in the upper end of
the M3 range. The provisional range for total
domestic nonfinancial debt was reduced by 1
percentage point for 1986.
The Committee turned to a discussion of policy implementation for the forthcoming intermeeting period, and most of the members indicated that they were in favor of maintaining
reserve conditions essentially unchanged, at
least initially following today's meeting. The
members took account, among other things, of
an analysis, which suggested that, given the
prospect of modest expansion in economic activ
131
ity during the fourth quarter, a steady degree of
reserve pressure was likely to be associated with
some pickup in growth of all the monetary aggregates over the remainder of the quarter from the
reduced October pace. For the three-month period as a whole, their rates of expansion would
probably be close to, possibly a bit below, those
anticipated at the time of the October meeting.
If these expectations for the fourth quarter
were realized, they would represent less monetary growth than had occurred in the third quarter—substantially less in the case of Ml. Even
so, growth in Ml would remain well above the
rebased range for the second half of 1985. The
Committee had established that range at the July
meeting on the presumption that the relationship
between Ml and broad measures of economic
activity would move toward a more normal pattern following the sizable and unusual decline in
Ml velocity in the first and second quarters. But
Ml velocity dropped even more in the third
quarter. While the expansion of Ml was expected to slow considerably in the fourth quarter to a
rate much closer to that of nominal GNP, even a
substantial tightening of reserve conditions and a
sharp rise in interest rates might not bring this
aggregate within the Committee's range for the
second half as a whole. As they had at previous
meetings, the members agreed that the behavior
of Ml needed to be judged in the context of the
performance of the economy and the fact that the
broader aggregates were growing at rates within
their ranges. Under prevailing circumstances,
and unless the dollar declined sharply further,
the strength of Ml thus far did not appear to
suggest strong inflationary consequences. Thus,
aggressive efforts to reduce its growth beyond
the slower pace that was already expected were
deemed to be unwarranted, especially in light of
the financial strains and other problems in some
sectors of the economy and the attendant risks to
the expansion itself. Accordingly, the members
concluded that growth of Ml above its target
range would be acceptable for the second half of
the year. Growth of M2 and M3 within their longrun ranges continued to be appropriate.
In the Committee's discussion of possible intermeeting adjustments in the degree of reserve
restraint, members could foresee conditions that
would call for either some easing or some tightening. Most of the members felt that policy
132 Federal Reserve Bulletin • February 1986
implementation should be particularly alert to
opportunities for some easing in light of the
relatively sluggish growth in domestic economic
activity and the favorable price performance,
subject to the constraint imposed by a desire to
minimize the risk of inducing unacceptably faster
growth in money and credit. It was also emphasized that account needed to be taken of the
behavior of the dollar on foreign exchange markets in any policy adjustments. One member
urged giving considerable weight to the behavior
of Ml in relation to expectations, with no presumptions regarding the direction of any intermeeting adjustment in the degree of reserve
restraint.
At the conclusion of the Committee's discussion, most of the members indicated their acceptance of a directive that called for maintaining
about the current degree of reserve restraint.
Given the sensitivity of economic and financial
conditions and exchange market developments,
it was understood that policy would be implemented with some added degree of day-to-day
flexibility. The members expected such an approach to policy implementation to be consistent
with growth of both M2 and M3 at an annual rate
of about 6 percent for the period from September
to December. Over the same period, Ml was also
expected to expand at an annual rate of around 6
percent, but in light of its very rapid growth in
the third quarter, slower growth in this aggregate
would be acceptable. Somewhat greater reserve
restraint might, and somewhat lesser restraint
would, be acceptable depending on the behavior
of the monetary aggregates over the intermeeting
period and taking account of appraisals of the
strength of the business expansion, the performance of the dollar on foreign exchange markets,
progress against inflation, and conditions in domestic and international credit markets. The
members agreed that the intermeeting range for
the federal funds rate, which provides a mechanism for initiating consultation of the Committee
when its boundaries are persistently exceeded,
should be left unchanged at 6 to 10 percent.
At the conclusion of the meeting, the following
domestic policy directive was issued to the Federal Reserve Bank of New York:
The information reviewed at this meeting suggests
that economic activity is continuing to expand at a
relatively modest pace. In September, total retail sales
rose considerably further, but the gain was boosted by
a temporary surge in auto sales that was reversed in
October. Total nonfarm payroll employment increased
considerably in October, following a much slower
advance in September, and the civilian unemployment
rate was unchanged at 7.1 percent. In recent months
industrial production has increased only slightly on
balance. Housing starts fell in September, but sales of
new and existing homes remained at a relatively high
level on average. Incoming information generally suggests a leveling of business capital spending. Merchandise trade data for the third quarter indicate that the
deficit widened slightly, as imports continued to increase. Broad measures of prices and wages appear to
be rising at rates close to or somewhat below those
recorded earlier in the year.
Ml appears to have shown little net change in
October following several months of rapid expansion.
Largely reflecting the weakness in M l , growth in M2
and M3 apparently was quite moderate in October.
Expansion in total domestic nonfinancial debt has
remained relatively rapid. Most short-term market
interest rates have changed little on balance since the
October 1 meeting of the Committee, while long-term
rates have declined somewhat. The trade-weighted
value of the dollar against major foreign currencies has
dropped slightly further on balance since October 1,
following a substantial decline after the September 22
meeting of the Finance Ministers and Central Bank
Governors of the G-5 countries.
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 at the July meeting
reaffirmed ranges for the year of 6 to 9 percent for M2
and 6 to W2 percent for M3. The associated range for
total domestic nonfinancial debt was reaffirmed at 9 to
12 percent. With respect to M l , the base was moved
forward to the second quarter of 1985 and a range was
established at an annual growth rate of 3 to 8 percent.
The range takes account of expectations of a return of
velocity growth toward more usual patterns, following
the sharp decline in velocity during the first half of the
year, while also recognizing a higher degree of uncertainty regarding that behavior. The appropriateness of
the new range will continue to be reexamined in the
light of evidence with respect to economic and financial developments including developments in foreign
exchange markets. More generally, the Committee
agreed that growth in the aggregates may be in the
upper parts of their ranges, depending on continuing
developments with respect to velocity and provided
that inflationary pressures remain subdued.
For 1986 the Committee agreed on tentative ranges
of monetary growth, measured from the fourth quarter
of 1985 to the fourth quarter of 1986, of 4 to 7 percent
for Ml, 6 to 9 percent for M2, and 6 to 9 percent for
M3. The associated range for growth in total domestic
nonfinancial debt was provisionally set at 8 to 11
Record of Policy Actions of the FOMC
percent for 1986. With respect to Ml particularly, the
Committee recognized that uncertainties surrounding
recent behavior of velocity would require careful
reappraisal of the target range at the beginning of 1986.
Moreover, in establishing ranges for next year, the
Committee also recognized that account would need to
be taken of experience with institutional and depository behavior in response to the completion of deposit
rate deregulation early in the year.
In the implementation of policy for the immediate
future, the Committee seeks generally to maintain
about the existing degree of pressure on reserve positions. This action is expected to be consistent with
growth in M2 and M3 over the period from September
to December at annual rates of about 6 percent. Ml
growth over the period at an annual rate of around 6
percent is also anticipated; slower growth for that
aggregate would be acceptable in the context of satisfactory economic performance, given the very rapid
growth in Ml over the summer. Somewhat greater
reserve restraint might, and somewhat lesser reserve
restraint would, be acceptable depending on behavior
of the aggregates, taking account of appraisals of the
strength of the business expansion, developments in
foreign exchange markets, progress against inflation,
and conditions in domestic and international credit
markets. The Chairman may call for Committee consultation if it appears to the Manager for Domestic
Operations that reserve conditions during the period
before the next meeting are likely to be associated with
a federal funds rate persistently outside a range of 6 to
10 percent.
Votes for this action: Messrs. Volcker, Corrigan,
Balles, Black, Forrestal, Keehn, Partee, Martin,
and Rice. Vote against this action: Ms. Seger.
Absent and not voting: Mr. Wallich.
Ms. Seger dissented because she believed that
some reduction in the degree of reserve restraint
was needed to help relieve financial strains in the
economy, and to promote a more acceptable rate
133
of economic expansion closer to the faster
growth expected by Committee members early
this year.
2. Authorization
for
Domestic Open Market
Operations
On December 9, 1985, the Committee approved a
temporary increase of $1 billion, to $7 billion, in
the limit between Committee meetings on
changes 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 increase
was effective immediately for the intermeeting
period ending with the close of business on
December 17, 1985.
Votes for this action: Messrs. Volcker, Balles,
Black, Forrestal, Keehn, Martin, Partee, Rice, Ms.
Seger, and Mr. Timlen. Votes against this action:
None. Absent and not voting: Messrs. Corrigan and
Wallich. (Mr. Timlen voted as alternate for Mr.
Corrigan.)
This action was taken on the recommendation
of the Manager for Domestic Operations. On
December 9, the Manager had advised that outright purchases of securities thus far in the
intermeeting interval had reduced the leeway
under the usual $6 billion limit to slightly over
$1.2 billion. Additional purchases of securities in
excess of that leeway were likely to be necessary
over the remainder of the intermeeting period,
largely to offset reserve drains associated with
seasonal increases in currency in circulation.
134
Announcements
AMENDMENT
TO REGULATION
D
The Federal Reserve Board has announced an
increase in the amount of net transaction accounts to which the 3 percent reserve requirement will apply in 1986 from $29.8 million to
$31.7 million. The Board also increased the
amount of reservable liabilities in depository
institutions that are subject to a zero percentage
reserve requirement from $2.4 million to $2.6
million. These adjustments take effect beginning
December 31, 1985.
The Monetary Control Act requires the Board
to amend its Regulation D (Reserve Requirements of Depository Institutions) annually to
increase the amount of transaction accounts subject to a 3 percent reserve requirement. The
annual adjustment must be 80 percent of the
annual percentage increase in transaction accounts held by all depository institutions. The
growth in total net transaction accounts of all
depository institutions from June 30, 1984, to
June 30, 1985, was 8.1 percent. The statutory
rule thus requires an increase of $1.9 million over
last year's amount, to $31.7 million.
The Board is required by the Garn-St Germain
Depository Institutions Act of 1982 to amend
Regulation D to adjust the amount exempt from
reserve requirements for the upcoming year by
80 percent of the annual percentage increase in
total reservable liabilities. Growth in total reservable liabilities was 9.1 percent from June 30,
1984, to June 30, 1985, requiring an increase in
the reserve requirement exemption to $2.6 million.
The Board will also change the basis of the
cutoff level for reporting (currently $25 million in
total deposits), which is used to separate weekly
reporters from quarterly reporters. The new basis will be indexed to 80 percent of the annual
percentage increase in total deposits and other
reservable liabilities. The annual adjustment of
this basis will be computed as of June 30 of each
year.
The Federal Reserve Board has also issued an
amendment to Regulation D concerning reserve
requirements on money market deposit accounts
held by Hawaiian nonmember depository institutions, effective January 2, 1986.
PROPOSED
ACTIONS
The Federal Reserve Board on December 26,
1985, issued for comment proposed amendments
to Regulations D and Q (Interest on Deposits) to
preserve money market deposit accounts
(MMDAs) and to maintain penalties for early
withdrawal of time deposits, in certain circumstances, for monetary policy purposes.
The Federal Reserve Board has also issued for
public comment an interpretation of Regulation
G (Securities Credit by Persons Other Than
Banks, Brokers, or Dealers) applying margin
requirements to a limited class of transactions
used to secure credit for the purpose of acquiring
margin stock. The proposed interpretation of
Regulation G affects a specific class of borrowing
involving debt securities issued by a shell corporation that is used as an acquisition vehicle for
purchasing the stock of the target company.
Although a comment period is not required, the
Board allowed a short period of public comment,
ending on December 23, 1985, to provide full
assurance of no unintended effects.
The Federal Reserve Board has also issued for
public comment proposed changes to the official
staff commentary on Regulation E (Electronic
Fund Transfers) and Regulation Z (Truth in
Lending). These proposed revisions address
questions that have arisen about the regulations.
Comment is requested by February 7, 1986.
CHANGES IN BOARD
STAFF
The Board of Governors has announced a reorganization in the Division of Banking Supervi-
135
sion and Regulation, including the following appointments.
Temporary assignment of Welford S. Farmer,
Senior Vice President of the Federal Reserve
Bank of Richmond, to the position of Deputy
Director for approximately one year; promotion
of Stephen C. Schemering to Deputy Associate
Director for Supervision; promotion of Richard
Spillenkothen to Deputy Associate Director for
Training and Policy Development; appointment
of James I. Garner as Assistant Director for
Supervision and Surveillance; and appointment
of James D. Goetzinger as Assistant Director for
Supervisory Information Services.
Mr. Farmer has been employed with the Federal Reserve Bank of Richmond since 1950. He
has a B.S. in Business Administration and a J.D.
from the University of Richmond and is also a
graduate of the Stonier Graduate School of
Banking.
Mr. Garner joined the staff of the Division of
Banking Supervision and Regulation in March
1970. He has a B.S. in Business Administration
from the University of Maryland.
Mr. Goetzinger has a B.S. in Business Administration from St. Benedict's College and an M.S.
in Economics from Kansas State University.
The Board has also approved the following
officer appointments in the Division of Federal
Reserve Bank Operations and in the Division of
Information Services.
Appointment of John H. Parrish as Assistant
Director in the Division of Federal Reserve Bank
Operations.
Appointment of Richard C. Stevens as Assistant Director for the Banking Statistics Branch in
the Division of Information Services.
Mr. Parrish came to the Board in January
1972. He received his undergraduate degree from
Miami University of Ohio.
Mr. Stevens joined the Board's staff in April
1973. He has a B.A. in Business Administration
from Lemoyne College.
SYSTEM
MEMBERSHIP:
ADMISSION OF STATE BANKS
The following banks were admitted to membership in the Federal Reserve System during the
period December 1 through December 31, 1985:
Florida
Coral Gables
Imperial Bank
Tampa
City Bank of Tampa
Georgia
Gainesville
Georgia First Bank
Smyrna
Smyrna Bank and Trust
Texas
Fort Worth
Fort Worth State Bank
137
Legal Developments
AMENDMENTS
TO REGULATION
D
Category
The Board of Governors is amending its Regulation D,
Reserve Requirements of Depository Institutions, to:
(1) increase the amount of transaction accounts subject to a reserve requirement ratio of 3 percent, as
required by section 19(b)(2)(C) of the Federal Reserve
Act (12 U.S.C. § 461(b)(2)(C)), from $29.8 million to
$31.7 million; and (2) increase the amount of reservable liabilities of each depository institution that is
subject to a reserve requirement of zero percent, as
required by section 19(b)(ll)(B) of the Federal Reserve Act (12 U.S.C. § 461(b)(ll)(B)), from $2.4 million to $2.6 million. The Board is also changing the
basis of the reporting cutoff level (currently $25 million
in "total deposits"), which is used to separate weekly
reporters from quarterly reporters, from "total deposits" to "total deposits and other reservable liabilities."
Effective December 31, 1985, the Board amends
12 C.F.R. Part 204 as follows:
Net transaction accounts
$0 to $31.7 million
over $31.7 million
3 percent of amount
$951,000 plus 12% of
amount over $31.7 million
Nonpersonal time deposits
By original maturity
(or notice period):
Less than I Vi years
1 Vi years or more
Eurocurrency liabilities
3%
0%
3%
(2) Exemption from reserve requirements.
Each
depository institution, Edge or Agreement Corporation, and U.S. branch or agency of a foreign bank is
subject to a zero percent reserve requirement on an
amount of its transaction accounts subject to the low
reserve tranche in paragraph (a)(1), nonpersonal
time deposits, or Eurocurrency liabilities or any
combination thereof not in excess of $2.6 million
determined in accordance with section 204.3(a)(3) of
this Part.
AMENDMENT TO REGULATION
Part 204—Reserve Requirements
Institutions
Reserve Requirement
D
of Depository
1. The authority citation for 12 C.F.R. Part 204 continues to read as follows:
Authority: 12 U.S.C. § 461 et seq.
2. Part 204 is amended by revising paragraph (a) of
section 204.9 to read as follows:
The Board of Governors is amending its Regulation D,
Reserve Requirements of Depository Institutions, to
relieve the restriction on reserve requirements on
money market deposit accounts held by Hawaiian
nonmember depository institutions. The Board will
require the phase-in of reserves on MMDAs in these
institutions on the same schedule generally applied to
their other deposits.
Effective December 31, 1985, the Board amends
12 C.F.R. Part 204 as follows:
Part 204—Reserve Requirements
Institutions
Section 204.9—Reserve Requirement Ratios
(a)(1) Reserve percentages. The following reserve ratios are prescribed for all depository institutions,
Edge and Agreement Corporations, and United
States branches and agencies of foreign banks:
of Depository
1. The authority citation for 12 C.F.R. Part 204 continues to read as follows:
Authority: 12 U.S.C. § 461 et seq.
2. Part 204 is amended by revising paragraph (f) of
section 204.4 by removing the last sentence.
138 Federal Reserve Bulletin • February 1986
*
*
*
*
*
AMENDMENT TO RULES REGARDING
DELEGATION OF AUTHORITY
The Board of Governors is amending 12 C.F.R. Part
265, its Rules Regarding Delegtion of Authority, to
delegate to the Federal Reserve Banks authority to act
on certain applications requiring prior approval of the
Federal Reserve Board and to furnish certain competitive factor reports. It is expected that this delegation of
authority would aid in the expeditious processing of
certain applications requiring the Board's prior approval and furnishing of certain competitive factor
reports.
Effective December 16, 1985, the Board amends
12 C.F.R. Part 265 as follows:
Part 265.2—Rules Regarding Delegation of
Authority
1. The authority citation for 12 C.F.R. Part 265 continues to read as follows:
Authority: Sec. 11, 38 Stat. 261; 12 U.S.C. 248.
2. Part 265 is amended by revising section 265.2 as
follows:
Section 265.2—Specific Functions Delegated to
Board Employees and to Federal Reserve
Banks
^ ***
(22) ***
(v) With respect to bank holding company formations, bank acquisitions or mergers, the proposed
transaction involves two or more banking organizations:
(A) That rank among a State's five largest
banking organizations, or among the 50 largest
banking organizations in the United States (as
measured by total domestic deposits within the
relevant area); or
(B) That, upon consummation of the proposal,
would control over 30 percent of total deposits
in banking offices in the relevant geographic
market, or would result in an increase of at least
200 points in the Herfindahl-Hirschman Index
("HHI") in a highly concentrated market (a
market with a post-merger HHI of at least
1800); or
(C) Where divestitures designed to address any
substantial anticompetitive effects are not ef
fected on or before consummation of the proposed transaction; or
*
*
*
*
*
ORDERS ISSUED UNDER BANK HOLDING
COMPANY ACT, BANK MERGER ACT, BANK
SERVICE CORPORATION ACT, AND FEDERAL
RESERVE ACT
Orders Issued Under Section 3 of the Bank
Holding Company Act
Bank of New England Corporation
Boston, Massachusetts
OCB Corporation
Boston, Massachusetts
Order Approving Acquisition
of a Bank
Bank of New England Corporation, Boston, Massachusetts, a bank holding company within the meaning
of the Bank Holding Company Act ("Act" or "BHC
Act"), has applied for the Board's approval under
section 3 of the Act to acquire, through its wholly
owned subsidiary, OCB Corporation, the successor to
Old Colony Bank, Providence, Rhode Island
("Bank"). 1 Bank is a federally chartered savings
bank, the accounts of which are insured by the FSLIC,
that, in connection with this proposal, will convert to a
national bank the accounts of which will be insured by
the FDIC. 2 Upon consummation of this proposal,
Bank's name will be changed to Bank of New England/
Old Colony, N.A.
Notice of the applications, affording an opportunity
for interested persons to submit comments, has been
given in accordance with section 3 of the Act, 50
Federal Register 48,642 (1985). The time for filing
comments has expired, and the Board has considered
the applications and all comments received 3 in light of
the factors set forth in section 3(c) of the BHC Act,
12 U.S.C. § 1842(c).
Bank, under its current charter and with FSLIC
insurance, is not considered a "bank" under section
1. OCB Corporation has also applied under section 3(a)(1) of the
BHC Act to become a bank holding company. OCB is of no significance except as a means to facilitate Applicant's acquisition of Bank.
2. Bank is also a bank holding company by virtue of its ownership
of Newport National Bank, Newport, Rhode Island. Subsequent to
this proposal, Newport Bank will be merged into Bank.
3. A letter protesting this application on Community Reinvestment
Act grounds was received from the South Providence Revitalization
Committee. After a series of meetings between Applicant and the
Committee, an agreement was reached and the protest was withdrawn.
Legal Developments
2(c) of the Act. 4 However, in connection with this
proposal, Bank would convert to a national bank. The
application has therefore been considered in light of
the requirements of section 3 of the BHC Act pertaining to the acquisition of banks. 5
Applicant, the second largest banking organization
in New England, controls nine subsidiary banks in
Massachusetts and Connecticut with total domestic
deposits of $9.1 billion. Applicant is the second largest
commercial banking organization in Massachusetts,
controlling approximately 13.6 percent of the total
deposits in depository institutions in Massachusetts. 6
Applicant is also the largest commercial banking organization in Connecticut, controlling 26.5 percent of the
total deposits in commercial banks in Connecticut.
Bank, the fifth largest depository institution in Rhode
Island, controls total domestic deposits of $724 million, representing approximately 7.1 percent of the
total deposits in commercial banking organizations in
Rhode Island. 7
Section 3(d) of the BHC Act (12 U.S.C. § 1842(d)),
the Douglas Amendment, prohibits the Board from
approving an application by a bank holding company
to acquire control of any bank located outside of the
bank's home state, 8 unless such acquisition is "specifically authorized by the statute laws of the state in
which such bank is located, by language to that effect
and not merely by implication." The statute laws of
Rhode Island permit a bank holding company in a
defined New England region, including Massachusetts, to acquire a bank located in Rhode Island, and
the Board has previously determined that an acquisition such as the proposed transaction is specifically
authorized by the statute laws of Rhode Island and is
not barred by the Douglas Amendment. 9
4. Section 2(c) of the BHC Act was amended by the Garn-St
Germain Depository Institutions Act of 1982 expressly to exclude
institutions, the accounts of which are insured by the FSLIC or
institutions chartered by the Federal Home Loan Bank Board.
5. Bank has received the approval of the Federal Home Loan Bank
Board to convert from mutual to stock form, and the Comptroller of
the Currency is currently processing Bank's application to convert to
a national bank with FDIC insurance.
6. Banking data are as of June 30, 1985.
7. The deposits of Rhode Island thrift institutions that own commercial banks are included as deposits of commercial banking organizations.
8. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later. Applicant's home state is Massachusetts.
9. Bank of Boston Corporation, 70 FEDERAL RESERVE I. J XETI
737 (1984).
139
Applicant and Bank compete directly in the Providence, Rhode Island, banking market. 10 Applicant's
banking subsidiary in that market controls deposits of
$7 million, which represent approximately 0.1 percent
of the total deposits in commercial banks in the
market.11 Bank holds deposits of $581.1 million, which
represent approximately 6.5 percent of the total deposits in commercial banking organizations in the market.
Upon consummation of this proposal, Applicant
would become the fifth largest of 17 banking organizations in the market and control approximately 6.6
percent of the total deposits in commercial banks
therein. In view of the small amount of existing
competition that would be eliminated as a result of this
proposal, consummation of this transaction would not
have a significant effect on existing competition in this
market.
The Board has also examined the effect of the
proposed acquisition upon probable future competition in the 31 banking markets12 in which either
Applicant or Bank, but not both, now compete. In
view of the fact that there are numerous potential
entrants from the New England region into each of
these markets, the Board has concluded that consummation of this proposal would not have any significant
adverse effects on probable future competition in any
relevant market. Competitive considerations are
therefore consistent with approval of this application.
The financial and managerial resources of Applicant
and its subsidiaries are satisfactory and their prospects
appear favorable. As a result of this proposal, which
includes a substantial capital injection into the resulting bank, the financial and managerial resources and
prospects of Bank will be strengthened. Thus, considerations relating to banking factors lend weight toward
approval of the application. Convenience and needs
considerations are also consistent with approval of the
transaction.
Based on the foregoing and other facts of record, the.
Board has determined that the applications under
section 3 of the Act should be, and hereby are,
approved and that, in accordance with section 11(b) of
the BHC Act, the acquisition of Bank shall not be
consummated before the fifth calendar day following
10. The Providence, Rhode Island, banking market is approximated
by the Pawtucket-Woonsocket-Attleboro, Rhode Island-Mass
(PMSA); the Providence, Rhode Island, PMSA; the towns of Charlestown and West Greenwich, both in Rhode Island; and Norton,
Massachusetts.
11. Market data are as of June 30, 1984.
12. Including the markets served by Maine National Corporation,
Portland, Maine, which Applicant received the Board's approval to
acquire on November 18, 1985.
140 Federal Reserve Bulletin • February 1986
the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Boston, acting pursuant to delegated authority.
By order of the Board of Governors, effective
December 19, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Rice, and Seger. Absent and not voting: Governors
Wallich and Partee.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Grupo Financiero Popular, S.A.
Santo Domingo, Dominican Republic
Order Approving
the Acquisition
of a Bank
Grupo Financiero Popular, S.A., Santo Domingo,
Dominican Republic, has applied for Board approval
under section 3(a)(1) of the Bank Holding Company
Act (the "Act") (12 U . S . C . § 1842 (a)(1)) to become a
bank holding company by acquiring the voting shares
of The Dominican Bank, N e w York, N e w York
("Bank"), a proposed new bank.
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 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.
Applicant, with total assets of approximately $276
million, is the largest bank holding company in the
Dominican Republic. 1 Applicant owns Banco Popular
Dominicano, C. por. A., Santo Domingo, which is the
largest commercial bank in the Dominican Republic,
with total assets of approximately $206 million. Based
on all of the facts of record, the Board has determined
that Applicant does not meet the requirements of
section 211.23(b) of Regulation K for the exemptions
to the nonbanking prohibitions of the Act provided to
qualifying foreign banking organizations. 12 C.F.R.
§ 211.23(b), (c) and (f). Applicant must, therefore,
conform its nonbanking activities to section 4 of the
Act.
1. All banking data are as of December 31, 1984.
Bank is a proposed new bank that would operate in
the N e w York Metropolitan banking market 2 and is
being established primarily to serve N e w York City
residents with ties to the Dominican Republic. Applicant proposes to acquire at least 48 percent of the
voting shares of Bank. The remaining shares of Bank
will be offered to other organizers of Bank and to
investors in the local community. Applicant proposes
to acquire any shares not subscribed to by other
investors.
Applicant and its subsidiary banks do not currently
operate any banking subsidiaries or branches in the
United States. Bank will be established de novo.
Consequently, consummation of the proposal would
not have adverse effects on existing or potential competition or on the concentration of resources in any
relevant market. The Board concludes, therefore, that
competitive considerations are consistent with approval of this application.
The financial and managerial resources of Applicant
and its bank subsidiaries appear generally satisfactory
and the future prospects of Applicant and Bank appear
favorable. Based on the facts of record, including
commitments made by Applicant, the Board has determined that considerations relating to banking factors
are consistent with approval of the application. Consummation of the proposal would also increase banking services in the communities in which Bank will
operate, in particular the Dominican community in
N e w York City. Considerations regarding the convenience and needs of the communities to be served
therefore favor approval of this application. Accordingly, the Board has determined that consummation of
the transaction would be in the public interest.
Based on the foregoing and all the facts of record
and commitments made by Applicant, the Board has
determined that the application should be, and hereby
is, approved. The transaction shall not be consummated before the thirtieth day following the effective date
of this Order, or later than three months after the
effective date of this Order, and Bank shall be opened
for business not later than six months after the effective date of this Order. The latter two periods may be
extended for good cause by the Board or the Federal
Reserve Bank of N e w York under delegated authority.
2. The New York Metropolitan banking market consists of the
southern portion of Fairfield County, Connecticut; New York City, all
of Nassau, Putnam, Rockland and Westchester Counties, and western
Suffolk County in New York; and eastern Hudson County and the
northern two-thirds of Bergen County in New Jersey.
Legal Developments
By order of the Board of Governors, effective
December 2, 1985.
Voting for this action: Vice Chairman Martin and Governors Partee, Rice, and Seger. Absent and not voting: Chairman Volcker and Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Slayton Bancshares, Inc.
Slayton, Minnesota
Order Approving
Company
Formation
of a Bank
Holding
Slayton Bancshares, Inc., Slayton, Minnesota, has
applied for the Board's approval under section 3(a)(1)
of the Bank Holding Company Act ("Act")
(12 U.S.C. § 1842(a)(1)) to become a bank holding
company by acquiring 80.6 percent of the voting
shares of Peoples State Bank of Slayton, Slayton,
Minnesota ("Bank").
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 is a nonoperating corporation with no
subsidiaries formed for the purpose of acquiring Bank.
Bank is the 219th largest commercial bank in Minnesota, with total deposits of $22.3 million, which represents less than 0.1 percent of total deposits in commercial banks in the state. 1 Principals of Applicant are also
principals of Bank. Consummation of the transaction
would not result in an increase in the concentration of
banking resources in Minnesota.
Bank operates in the Marshall banking market, 2
where it is the fourth largest of 15 commercial banks,
controlling 5.5 percent of total deposits in commercial
banks. Principals of Applicant are not affiliated with
any other depository organization in this market.
Consummation of this proposal 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 financial and managerial resources and future
prospects of Applicant and Bank are consistent with
approval. Applicant proposes to acquire Bank (assets
of $24 million) through an exchange of shares. Applicant intends to make a capital injection of $300,000
into Bank and will finance this injection through the
issuance of debentures to its principals. Based upon
the facts of record, including commitments made by
Applicant in connection with this application, it appears that the debt will not strain Bank's resources.
Considerations relating to the convenience and needs
of the community to be served also are consistent with
approval of the application.
Based on the foregoing and other facts of record, the
Board has determined that consummation of the 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 transaction shall not be consummated before the thirtieth calendar day following
the effective date of this Order, or later than three
months following the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Minneapolis,
acting pursuant to delegated authority.
By order of the Board of Governors, effective
December 9, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Rice, and Seger. Absent and not voting:
Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Orders Issued Under Section 4 of the Bank
Holding Company Act
Compagnie Financiere de Suez
Paris, France
Banque Indosuez
Paris, France
Order Denying Application to Act as a Specialist
Options on Foreign Exchange
1. Banking data are as of March 31, 1985.
2. The Marshall banking market is approximated by all of Lincoln
County, Lyon County, and portions of Murray County, Redwood
County, and Yellow Medicine County, all in Minnesota.
141
in
Compagnie Financiere de Suez and its wholly owned
subsidiary, Banque Indosuez, both of Paris, France
(hereinafter jointly referred to as "Applicant"), have
142 Federal Reserve Bulletin • February 1986
applied for the Board's approval, under section 4(c)(8)
of the Bank Holding Company Act ("Act")
(12 U.S.C. § 1843(c)(8)) and section 225.4(b)(2) of the
Board's Regulation Y (12 C.F.R. § 225.4(b)(2)), to
engage through a subsidiary of Banque Indosuez,
Indosuez Options Inc., Philadelphia, Pennsylvania
("Company"), in acting as the specialist in options on
French francs traded on the Philadelphia Stock Exchange ("the Exchange"). Company would be the sole
specialist in French franc options designated by the
Exchange. As specialist, Company would act as dealer
and market maker in such options to assist in the
maintenance of a fair and orderly market on the
Exchange. Applicant would be a limited member of
the Exchange, but would not be permitted to trade
other options or securities on the Exchange.
Notice of the application, affording interested persons an opportunity to submit comments 1 and views
on the relation of the proposed activity to banking and
on the balance of public interest factors regarding the
application, has been duly published (50 Federal Register 16,752 (1985)). The time for filing comments and
views has expired, and the Board has considered the
application and all comments received in light of the
public interest factors set forth in section 4(c)(8) of the
Act.
Under the International Banking Act of 1978, Banque Indosuez and its parent Compagnie Financiere de
Suez, are subject to the nonbanking provisions of the
Bank Holding Company Act of 1956, as amended, with
respect to their activities in the United States because
of Banque's operation of branches and an agency in
the United States (12 U.S.C. § 3106(a)). Compagnie,
with consolidated assets of approximately $27.4 billion, 2 is wholly owned by the French government as a
result of nationalization in 1982 and has holdings in
over 230 financial and industrial companies in France
and abroad. Banque Indosuez, with consolidated assets of approximately $25.8 billion, is the seventh
largest bank in France, and an international banking
organization that operates in 65 countries. Banque
Indosuez operates branches in New York, Chicago
and Los Angeles, and an agency in Atlanta. In addition, the bank has established an Edge corporation in
Houston.
In order to approve an application submitted pursuant to section 4(c)(8) of the Act, the Board is required
to determine that the proposed activity is "so closely
related to banking . . . as to be a proper incident
1. Public comments in favor of the proposal were received from
Bank of America, San Francisco, California, Meridian Bancorp, Inc.,
Reading, Pennsylvania, and the Philadelphia Stock Exchange.
2. Banking data are as of December 31, 1984.
thereto." In considering whether a proposed new
activity would be a proper incident to banking, the
Board is required to determine that the performance of
the proposed activities by Applicant, "can reasonably
be expected to produce benefits to the public, such as
greater convenience, increased competition, or gains
in efficiency, that outweigh possible adverse effects,
such as undue concentration of resources, decreased
or unfair competition, conflicts of interests, or unsound banking practices." (12 U.S.C. § 1843(c)(8)).
The Board has not previously approved a proposal
by a bank holding company to act as a specialist on a
regulated securities exchange. 3 Applicant maintains
that the proposed specialist activity is comparable to
traditional bank foreign exchange activities, 4 including
those approved for bank holding companies under
section 4(c)(8) of the Act. 5
However, the Board has previously denied an application by a bank holding company to buy and sell
foreign currency futures for its own account through
pit arbitrage on the basis that the activity could lead to
unsound banking practices. 6 Pit arbitrage involves the
actions of floor traders on commodities exchanges in
buying and selling futures for their own account in an
effort to profit from temporary price differentials between futures contracts. Moreover, in approving applications by bank holding companies to execute and
clear options and futures relating to foreign currency
and to provide foreign currency advisory and transactional services, the Board has generally required the
nonbanking subsidiary to agree not to take positions
for its own account.
One role of the specialist under the rules of the SEC
pertaining to the regulated securities markets is to
provide liquidity for members of the exchange. As
3. Applicant notes that the Comptroller of the Currency has permitted a national bank (Bank of America) to act as the specialist in
Deutsche mark options on the Philadelphia Stock Exchange through a
joint venture with a securities firm. Letter from the Deputy Comptroller for Multinational Banking to H. Helmut Loring, Bank of America,
N.T. & S.A. (January 11, 1984).
4. Banks historically have been significant participants in the spot
and forward foreign exchange markets. Banks write and purchase
options contracts in the over-the-counter, or interbank, foreign currency options market, and may rely on the spot and forward markets
as well as on standardized commodity and securities exchange-traded
options and futures, for hedging purposes.
5. The Board has previously approved applications of bank holding
companies to execute and clear options and futures relating to foreign
exchange for customers and to provide foreign exchange advisory and
transactional services. Sections 225.25(b)(17) and 225.25(b)(18) of
Regulation Y. See, e.g., J.P. Morgan & Co. Incorporated, 68
FEDERAL RESERVE BULLETIN 514 (1982) (execution and clearance of
foreign currency futures as a futures commission merchant (FCM));
Hongkong and Shanghai Banking Corporation, 69 FEDERAL RESERVE
BULLETIN 221, 223 (1983) (foreign exchange advisory and transactional s e r v i c e s ) ; a n d Fidelcor
Inc.,
7 0 FEDERAL RESERVE BULLETIN 368
(1984).
6. Citicorp/Citicorp Futures Corporation,
BULLETIN 776, 779 (1982).
68 FEDERAL RESERVE
Legal Developments
such, the specialist is required to "engage in a course
of dealings for his own account to assist in the maintenance, insofar as reasonably practicable, of a fair and
orderly market on the Exchange" and is subject to
suspension for failure to fulfill that obligation to the
Exchange under Rule 203(b) of the Philadelphia Stock
Exchange Guide.
In the Board's view, the undertaking by a banking
organization of the obligation of the specialist to
engage in a course of dealings for its own account to
maintain the market for the Exchange would involve
the banking organization in an activity that carries
potential financial risks of a similar nature to those
presented by pit arbitrage. The specialist is obligated
to bid and offer for all traders who approach it on the
Exchange and therefore the activity has the potential
to involve a banking organization in position-taking for
longer periods of time than pit arbitrage and in trading
for its own account at times when dealers may choose
not to because of adverse market conditions.
The Board has considered the qualifications and
resources of Applicant and the regulatory environment
in which the activity would be conducted, but notes
that these considerations would not prevent possible
adverse effects that are associated with the activity
itself, which is a key concern to the Board in this case.
The Board notes that the specialist activity requires
skill and experience in trading on the floor of a stock
exchange, which are not possessed by banks generally. The Board is unable to conclude that Applicant has
demonstrated it now possesses the necessary floortrading skill and experience as a result of hiring or
allowing certain of its employees to train for short
periods of time with floor traders.
The Board has also considered the potential for
conflicts of interest to arise in connection with this
proposal. In the Board's view, the fact that Applicant
is a significant participant in the foreign exchange
markets, particularly regarding the French franc, and
would under this proposal also be the specialist in
French franc options on the Exchange, with access to
information regarding the extent, volume and details
of ongoing trading in such options on the Exchange,
presents the potential and incentive for conflicts of
interest to arise.
In order to approve an application under section
4(c)(8) the Board must find that the performance of an
activity can reasonably be expected to produce public
benefits that outweigh possible adverse effects. Applicant states that approval of its application would
contribute to the further development of the market
for standardized French franc options and result in
benefits to the public such as increased market efficiency and liquidity. In the Board's view, however,
this potential public benefit does not outweigh the
143
possible adverse effects associated with the proposal.
Moreover, it does not appear that denial of the application would cause the specialist position, which is a
privileged position on the Exchange for which there is
competition, to go unfilled. Consequently, the Board
finds that the potential public benefits associated with
this proposal do not outweigh the possible adverse
effects associated with the proposed activity.
Based upon the foregoing and other considerations
reflected in the record, the Board has determined that
the balance of public interest factors the Board is
required to consider under section 4(c)(8) is not favorable. Accordingly, the application is denied.
By order of the Board of Governors, effective
December 9, 1985.
Voting for this action: Governors Martin, Partee, and Rice.
Voting against this action: Chairman Volcker. Absent and not
voting: Governors Wallich and Seger.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
CoreStates Financial Corp.
Philadelphia, Pennsylvania
Order Approving
Company
the Acquisition
of
Nonbank
CoreStates Financial Corp., Philadelphia, Pennsylvania, a bank holding company within the meaning of the
Bank Holding Company Act (12 U.S.C. § 1841
et seq.), has applied for the Board's approval under
section 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) to
acquire through its indirect subsidiary, Congress Financial Corporation ("Congress"), 100 percent of the
voting shares of James Talcott, Inc., N e w York, N e w
York ("Talcott"). Talcott is a factoring and commercial finance company that provides financial services
primarily to the textile, apparel and related industries.
These activities 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)(1)).
Notice of the application, affording interested persons an opportunity to submit comments and views,
has been duly published (50 Federal Register 45,666
(1985)). The time for filing comments has expired, and
the Board has considered the application and all
comments received in light of the factors specified in
section 4(c)(8) of the Act.
Applicant, with consolidated assets of approximately $9.4 billion, 1 is the third largest bank holding
1. All banking data are as of December 31, 1984.
144 Federal Reserve Bulletin • February 1986
company in the state of Pennsylvania. Applicant operates three bank subsidiaries, including Philadelphia
National Bank, Philadelphia, Pennsylvania ("PNB"),
which controls $4.4 billion in deposits and Hamilton
Bank, Lancaster, Pennsylvania, which controls $2.0
billion in deposits.
Congress engages in factoring and commercial finance activities from its headquarters in N e w York
and offices in Atlanta, Georgia; Baltimore, Maryland;
Buffalo, N e w York; Chicago, Illinois; Minneapolis,
Minnesota; Miami, Florida; Los Angeles and San
Francisco, California; and San Juan, Puerto Rico.
Talcott has offices in Los Angeles, California, Atlanta,
Georgia and N e w York, N e w York.
Talcott, with total assets of $271 million, is the
eleventh largest factoring company in the United
States, controlling 3.7 percent of the market for factoring services. 2 Applicant is the fifteenth largest factor in
the nation, controlling 2.6 percent of the national
factoring market. Upon consummation of the proposal, Applicant would become the fifth largest factor in
the nation, controlling 6.3 percent of the national
factoring market. While consummation of this proposal would eliminate existing competition between Applicant and Company, the Board notes that the market
for factoring is unconcentrated, with a HerfindahlHirschman Index ("HHI") of 817 and a four-firm
concentration ratio of 43.9 percent. Upon consummation of the proposal, the HHI would increase by 19
points. Moreover, there are numerous existing and
potential competitors in the factoring business.
Applicant, through its subsidiaries, Congress and
PNB, also engages in commercial finance activities, in
competition with Talcott. The Board has previously
determined that the market for commercial finance
services is regional or national in scope. 3 Talcott's
loans, which totalled less than $100 million as of
September 30, 1985, are made in a national market and
are serviced out of Talcott's offices in N e w York and
Atlanta. Talcott has a relatively insignificant presence
in the commercial lending market and the market is
unconcentrated with numerous existing and potential
competitors. In view of all the facts of record, the
Board concludes that consummation of this proposal
would not have a significant adverse effect on competition in the factoring or commercial finance market.
Financial and managerial considerations are generally satisfactory and consistent with approval of this
proposal. Moreover, there is no evidence in the record
2. The Board has previously determined that the factoring market is
a nationwide market. Barclays Bank Limited, 66 FEDERAL RESERVE
BULLETIN 9 8 0 (1980); Lloyds
SERVE BULLETIN 5 1 8 (1980).
& Scottish-Talcott,
6 6 FEDERAL R E -
3. First Interstate Bancorp, 70 FEDERAL RESERVE BULLETIN 886
(1984).
that consummation of this proposal would result in
adverse effects such as unsound banking practices,
unfair competition, conflicts of interests or an undue
concentration of resources.
Based upon 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. This determination is subject to all
of the conditions set forth in the Board's Regulation Y,
including those in section 225.4(d) and 225.23(b), and
to the Board's authority to require modification or
termination of the activities of the holding company or
any of its subsidiaries as the Board finds necessary to
assure compliance with the provisions and purposes of
the Act and the Board's regulations and orders issued
thereunder, or to prevent evasion thereof.
This transaction shall not be consummated later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board, or by the Federal Reserve Bank of
Philadelphia, pursuant to delegated authority.
By order of the Board of Governors, effective
December 13, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, and Rice. Absent and not voting: Governors
Wallich and Seger.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Manufacturers Hanover Corporation
New York, New York
Order Approving Application to Execute and Clear
Certain Futures Contracts and to Provide Certain
Advisory
Services
Manufacturers Hanover 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. ("BHC Act"), has applied pursuant to
section 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and
section 225.23(a)(3) of the Board's Regulation Y
(12 C.F.R. § 225.23(a)(3)) to engage de novo through
its wholly owned subsidiary, Manufacturers Hanover
Futures, Inc., N e w York, N e w York ("MH Futures"), in the execution and clearance, on major
commodity exchanges, of futures contracts on stock
indexes, options on such futures contracts, and futures
contracts on a municipal bond index.
MH Futures proposes to execute and clear:
(1) the Standard & Poor's 100 Stock Price Index
futures contract, the Standard & Poor's 500 Stock
Legal Developments
Price Index futures contract ("S&P 500"), and
options on the S&P 500, all of which are currently
traded on the Index and Option Division of the
Chicago Mercantile Exchange;
(2) the New York Stock Exchange ("NYSE") Composite Index futures contract and options on the
NYSE Composite Index futures, both of which are
currently traded on the New York Futures Exchange, a subsidiary of the New York Stock Exchange;
(3) the Value Line Average Stock Index futures
contract, currently traded on the Board of Trade of
Kansas City; and
(4) the Major Market Index futures contract and the
Bond Buyer Municipal Bond Index futures contract,
both of which are currently traded on the Chicago
Board of Trade.
In addition, Applicant has applied to provide,
through MH Futures, advisory services with respect
to the Bond Buyer Municipal Bond Index futures
contract, both on a separate-fee basis and as an
integrated package of futures commission merchant
and advisory services. Such advisory services would
include general research and advice on futures market
conditions and trading strategies. Applicant proposes
to offer these services to financial institutions, major
corporations, and other sophisticated customers in the
United States and abroad through its offices in New
York and Chicago.
Notice of the application, affording interested persons an opportunity to submit comments on the relation of the proposed activities to banking and on the
balance of public interest factors, has been duly published (50 Federal Register 42,777 (1985)). The time for
filing comments has expired, and the Board has considered the application and all comments received in
light of the public interest factors set forth in section
4(c)(8) of the BHC Act.
Applicant, with consolidated assets of $75.3 billion,1
is the third largest banking organization in New York.
Applicant operates three subsidiary banks and engages, directly and through certain of its subsidiaries,
in a broad range of permissible nonbanking activities
throughout the United States. MH Futures is a futures
commission merchant ("FCM"), registered with the
Commodity Futures Trading Commission ("CFTC"),
that engages in futures activities permissible for bank
holding companies under section 225.25(b)(18) of the
Board's Regulation Y.
The Board has previously determined that the execution and clearance of futures contracts and options
1. As of September 30, 1985.
145
on futures contracts based on stock indexes, and of
futures contracts on a municipal bond index, and the
provision of advisory services with respect to futures
contracts on a municipal bond index, are closely
related to banking. J.P. Morgan & Co. Incorporated,
71 FEDERAL RESERVE BULLETIN 251 (1985);
Bankers
Trust New York Corporation, 71 FEDERAL RESERVE
BULLETIN 111 (1985). The proposed activities of MH
Futures are essentially identical to those activities
previously approved by the Board. Thus, the Board
concludes that Applicant's proposal to execute and
clear futures contracts on stock indexes, options
thereon, and futures contracts on a municipal bond
index, and to provide advisory services with respect to
futures contracts on a municipal bond index, is closely
related to banking.
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, such as undue
concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking
practices." (12 U.S.C. § 1843(c)(8)).
Consummation of Applicant's proposal would provide added convenience to those clients of Applicant
and its subsidiaries that trade in the cash, forward and
futures markets for these instruments. 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 already
in operation. Accordingly, the Board concludes that
the performance of the proposed activities by Applicant can reasonably be expected to provide benefits to
the public.
The Board also has considered the potential for
adverse effects that may be associated with this proposal. There is no evidence in the record that consummation of the proposed FCM activities would result in
any adverse effects, such as undue concentration of
resources, decreased or unfair competition, conflicts
of interests, or unsound banking practices. The Board
notes that additional safeguards are provided by CFTC
regulation of the trading of futures, as well as by 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 it is required to consider under
section 4(c)(8) is favorable.
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 Board's authority to require
146 Federal Reserve Bulletin • February 1986
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 BHC Act and the
Board'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 2, 1985.
Voting for this action: Vice Chairman Martin and Governors Partee, Rice, and Seger. Absent and not voting: Chairman Volcker and Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published, 50 Federal Register 45,872 (1985). The
time for filing comments has expired, and the Board
has considered the application and all comments received, including those of the Securities Industry
Association ("SIA") in opposition to the proposal, 2 in
light of the public interest factors set forth in section
4(c)(8) of the Act.
Applicant, with total assets of $8.9 billion, 3 is the
largest banking organization in Virginia. Applicant has
one subsidiary bank, Sovran Bank, N . A . ("Sovran
Bank"), Richmond, Virginia, and engages through
certain subsidiaries in other nonbanking activities permissible for bank holding companies. 4
The Board has previously determined that acting as
a broker with respect to options on securities issued or
guaranteed by the U . S . government and its agents and
options on U.S. and foreign money market instruments is closely related to banking. Security Pacific
Corporation,
Sovran Financial Corporation
Norfolk, Virginia
Order Approving an Application to Provide
Securities Brokerage Services, to Broker Options on
Government Obligations and Money Market
Instruments, and to Broker Gold and Silver Bullion
and Gold Coins
Sovran Financial Corporation, Norfolk, Virginia, a
bank holding company within the meaning of the Bank
Holding Company Act of 1956 ("Act" or "BHC
Act"), 12 U.S.C. § 1841 et seq., has applied pursuant
to section 4(c)(8) of the Act, 12 U.S.C. § 1843(c)(8),
and section 225.23(a) of the Board's Regulation Y,
12 C.F.R. § 225.23(a), to expand the activities of its
wholly owned subsidiary, Sovran Investment Corporation ("SIC"), Richmond, Virginia, to include:
(1) securities brokerage services,
(2) buying and selling, as agent on behalf of nonaffiliated persons, options on securities issued or
guaranteed by the U . S . Government and its agencies, and options on U . S . and foreign money market
instruments, and
(3) purchasing and selling gold and silver bullion and
gold coins solely for the account of customers. 1
1. SIC has previously received authorization under the BHC Act to
(1) underwrite and deal in government obligations and money market
instruments, pursuant to section 225.25(b)(16) of Regulation Y, (2)
provide investment advice relating solely to government obligations
and money market instruments, pursuant to section 225.25(b)(4) of
Regulation Y, and (3) provide certain fiduciary services, including
securities safekeeping, custodial services, and acting as a paying agent
and as a dividend disbursement agent.
7 0 FEDERAL RESERVE BULLETIN
238
(1984). The Board also has previously determined that
the purchase and sale of gold and silver bullion and
gold coins solely for the account of customers is an
activity that is closely related to banking. First Interstate
Bancorp,
7 1 FEDERAL RESERVE BULLETIN 4 6 7
(1985). 5
The Board by regulation has authorized bank holding companies to engage in securities brokerage activities that "are restricted to buying and selling securities
solely as agent for the account of customers and do not
include securities underwriting or dealing or investment advice." 12 C.F.R. § 225.25(b)(15). In Securities
Industry Association v. Board of Governors,
U.S.
, 104 S. Ct. 3003 (1984), the United States Supreme
Court upheld the Board's decision that such activity
by a bank holding company does not violate the GlassSteagall Act and is so closely related to banking as to
be a proper incident thereto under section 4(c)(8) of
the BHC Act.
The principal issue raised by this application is
whether Applicant may, through the same subsidiary,
2. In addition to the comment opposing the proposal from the SIA,
the Board received comments supporting the proposal from the Dealer
Bank Association, the California Bankers Association, and Union
Bank, Los Angeles, California.
3. As of September 30, 1985.
4. Applicant has previously been authorized to engage through
Sovran Capital Management Corporation ("SCM"), Richmond, Virginia, in the provision of investment or financial advice on a fee basis.
Sovran has committed that SCM will not utilize the securities brokerage services to be provided by SIC.
5. SIC will not engage in the sale of platinum and palladium or deal
in gold and silver for its own account. The present application does
not include the activity of buying and selling options on gold and silver
bullion. Moreover, SIC does not propose to extend credit or offer
investment advice to customers in connection with the proposed
precious metals services.
Legal Developments
provide securities brokerage services, underwrite and
deal in government obligations and money market
instruments, and provide investment advice related
solely to such bank-eligible securities. Applicant contends that the proviso in section 225.25(b)(15) of
Regulation Y against securities underwriting, dealing
or investment advisory or research services in connection with securities brokerage activities was not intended to preclude a bank holding company from
separately engaging in otherwise permissible underwriting, dealing, and investment advisory activities in
the same subsidiary. Applicant contends that the appropriate regulatory focus should be the functional
manner in which, and not the legal entity through
which, such securities brokerage services are provided.
Accordingly, Applicant has stated that SIC will not
provide investment advice or research in connection
with any securities it brokers pursuant to section
225.25(b)(15) of Regulation Y, and will not underwrite,
deal in, or provide investment advice on securities
other than those authorized under section
225.25(b)(16) of Regulation Y. Applicant also has put
into place a number of mechanisms that it contends
provide adequate assurance that it will maintain a firm
functional and operational separation between the
proposed securities brokerage activities and the previously approved investment advisory and bank-eligible
underwriting and dealing activities.
Applicant has stated that it will carry over to SIC
existing operational arrangements in Sovran Bank to
maintain the functional and operational separation that
already exists between Sovran Bank's securities brokerage activities and its underwriting, dealing, and
advisory activities. Specifically, the proposed securities brokerage services will be performed by personnel
who will be instructed specifically not to provide, and
will not provide, any investment advice.6 All securities
brokerage orders will be taken by telephone in tape
recorded transactions, and Applicant will monitor and
provide regulatory access to the recordings to ensure
that no investment advice is provided by securities
brokerage personnel. Securities brokerage personnel
will be compensated by fixed salary rather than by
commission to remove financial incentives for the
promotion or "selling" of securities. The securities
brokerage personnel will have distinct training, equipment, and operational support facilities tailored specifically to the securities brokerage function, and will not
have access to equipment providing information about
bank-eligible securities of the types that SIC deals in
6. Sovran Bank's securities brokerage customers can purchase for
a separate fee certain types of advisory services from the unaffiliated
registered broker-dealer that acts as the clearing agent for all of
Sovran Bank's securities brokerage trades. Sovran Bank does not,
however, receive any portion of this fee.
147
or underwrites pursuant to section 225.25(b)(16) of
Regulation Y.7
In addition, the separate SIC personnel engaged in
underwriting, dealing and advisory activities with respect to bank-eligible securities and obligations will be
trained not to provide particularized or specific investment advice, but only generalized and publicly available information concerning such bank-eligible securities.
The SIA contends that the combination of securities
brokerage activities and investment advice violates
section 20 of the Glass-Steagall Act and is not closely
related to banking or a proper incident thereto. The
SIA asserts that banks have not, and indeed may not,
simultaneously provide both securities brokerage
services and investment advice to their customers, and
that the proposed activities are not functionally or
operationally similar to the investment, management,
fiduciary or agency services traditionally provided by
banks.
The Board believes that the SIA's contentions under
the BHC Act and the Glass-Steagall Act do not
warrant denial of the application. The SIA's contentions are premised on the assumption that investment
advice will be provided in connection with SIC's
securities brokerage activities, which is not the case.
Because Applicant will not provide advice or research
in connection with securities it brokers pursuant to
section 225.25(b)(15) and will maintain a functional
and operational separation between SIC's securities
brokerage services and its authorized underwriting,
dealing, and investment advisory activities, the Board
believes the proposal is permissible under section
225.25(b)(15) of Regulation Y and does not violate the
Glass-Steagall Act.8 The Board's approval of this
application is expressly conditioned on the fact that
SIC will not provide any advice or research services in
connection with its securities brokerage services under section 225.25(b)(15) and will maintain a functional
separation between such activities and its other activities as described in this application. In the Board's
view, the critical consideration under section
225.25(b)(15) of Regulation Y is whether the securities
brokerage activity is conducted separate and apart
from investment advisory, dealing or underwriting
activities, not whether the activities are conducted
through separate subsidiaries.
7. The personnel providing securities brokerage services will be
located in a physically distinct and identifiable portion of SIC's
premises.
8. The Board recently approved an application to provide securities
brokerage services and consumer financial counseling through the
same legal entity. United City Corporation, 71 FEDERAL RESERVE
BULLETIN 662 (1985). The Board found that several commitments
offered by the applicant would be sufficient to establish the degree of
functional separation between securities brokerage services and consumer financial counseling services that is required under the proviso
of section 225.25(b)(15) that prohibits investment advice.
148 Federal Reserve Bulletin • February 1986
The Board has considered the SIA's assertions that
consummation of the proposal could result in conflicts
of interest and unsound banking practices, but believes these objections are not warranted because they
presuppose an integration of securities brokerage with
investment advisory and research services—an integration that, for the reasons discussed above, is not
involved in Applicant's proposal. As in BankAmerica
Corporation (Schwab),9 SIC will not have a "salesman's stake" or other promotional interest in any
securities it brokers because it will not purchase or sell
any such securities for its own account, and will not
provide any investment advice or research in connection with its securities brokerage services authorized
under section 225.25(b)(15) of Regulation Y.
The Board has also considered SIA's contention
that the voluntary or regulated restraints proposed by
Applicant are inadequate to address the problems
raised by the application under the BHC Act or the
Glass-Steagall Act. The Board, however, believes it
appropriate to rely on the fact that Applicant will not
offer investment advice or research in connection with
its securities brokerage activities and will maintain a
functional and operational separation between the
securities brokerage activities of SIC and its underwriting, dealing, and investment advisory activities
relating to bank-eligible securities. 10 Moreover, Applicant has established mechanisms and procedures to
ensure that no advice or research services will be
provided in connection with securities it brokers pursuant to section 225.25(b)(15) of Regulation Y, which
the Board believes are appropriate.
The Board's approval of the present application is
based solely on its finding that the proposal is consistent with the requirements of section 225.25(b)(15) of
Regulation Y. It does not constitute in any way a
determination that the combination of securities brokerage and investment advisory or underwriting activities is permissible under section 20 of the GlassSteagall Act or is so closely related to banking as to be
a proper incident thereto under section 4(c)(8) of the
BHC Act. The Board has this issue under consideration in connection with a proposal by National Westminster Bank PLC, London, England.
Based upon the foregoing and other facts of record,
the Board concludes that the balance of the public
interest factors it must consider under section 4(c)(8)
of the Act is favorable. Accordingly, the Board has
determined that the application should be, and hereby
is, approved. This determination is subject to all the
conditions set forth in Regulation Y, including those in
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 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 Board's
regulations and orders issued thereunder, or to prevent evasion thereof.
The 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 Richmond,
acting pursuant to delegated authority.
By order of the Board of Governors, effective
December 20, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Rice, and Seger. Absent and not voting: Governors
Wallich and Partee.
JAMES M C A F E E
[SEAL]
Associate
Secretary of the Board
Wells F a r g o & C o m p a n y
San F r a n c i s c o , California
Order Approving the Issuance and Sale of Variably
Denominated Payment Instruments
Wells Fargo & Company ("Applicant" or "Wells
Fargo"), San Francisco, California, a bank holding
company within the meaning of the Bank Holding
Company Act ("Act"), 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)(3) of the Board's
Regulation Y (12 C.F.R. § 225.23(a)(3)), to engage de
novo in the issuance and sale of payment instruments,
as follows:
(1) domestic money orders up to a maximum face
value of $10,000;
(2) international money orders in denominations not
to exceed $10,000; and
(3) official checks with no maximum limitation on
the face amount, but subject to certain conditions.
These instruments would be sold throughout California exclusively through branches of its subsidiary, Wells Fargo Bank, N.A. ("Wells Fargo
Bank").1
9. 6 9 FEDERAL RESERVE BULLETIN 105 ( 1 9 8 3 ) .
10. E.g., Independent Insurance Agents of America, Inc. v. Board
of Governors, 736 F.2d 468, 474-476 (8th Cir. 1984); Independent
Insurance Agents of America, Inc. v. Board of Governors, 646 F.2d
868, 869-870 (4th Cir. 1981).
1. In this regard, Applicant relies on section 4(c)(1)(C) of the Act
for authority to furnish data processing, marketing, and servicing
assistance in connection with its payment instrument activities.
Legal Developments
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (50 Federal Register 47,274 (1985)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the public interest factors set forth in
section 4(c)(8) of the Act.
Wells Fargo controls total consolidated assets of
$29.2 billion and is the third largest bank holding
company in the state of California based on total
domestic deposits in Wells Fargo Bank.2 Wells Fargo
also engages in a number of nonbanking activities.
Regulation Y includes on the list of permissible
nonbanking activities the issuance and sale of money
orders and other similar consumer-type payment instruments with a face value not exceeding $1,000.3 The
Board previously has approved by Order applications
to engage in the issuance of payment instruments with
a maximum face value of $10,000.4 In its Orders, the
Board found that an increase in the denomination of
such instruments would not affect the fundamental
nature of the payment instruments, and the Board
concluded that the issuance and sale of the proposed
instruments in increased denominations is closely related to banking.
In order to approve this application, the Board must
also find that the performance of the proposed activity
by Wells Fargo "can reasonably be expected to produce benefits to the public, such as greater convenience, increased competition, or gains in efficiency,
that outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts or interests, or unsound banking
practices."
Consumer-type payment instruments, such as traditional money orders, are marketed nationally on the
wholesale level by a few large organizations and
locally on the retail level by a wide variety of financial
and nonfinancial institutions.5 On the national scale,
the market is highly concentrated, being dominated by
a few large organizations. Entry into this business on a
national scale involves overcoming significant barriers
because a potential entrant must possess the capability
2. Asset data are as of June 30, 1985, and deposit data are as of
March 31, 1985.
3. 12 C.F.R. § 225.25(b)(12).
4. BankAmerica
Corporation,
7 0 FEDERAL RESERVE BULLETIN 3 6 4
(1984); see also The Chase Manhattan Corporation, 71 FEDERAL
RESERVE BULLETIN 9 0 5 ( 1 9 8 5 ) ; a n d Citicorp,
71 FEDERAL RESERVE
BULLETIN 58 (1985).
5. Money orders are primarily used to transmit money by consumers who do not or cannot maintain checking accounts. Traditionally,
money orders have a maximum face value printed on the instrument,
which is generally at or lower than the limit set by Regulation Y.
Official checks can be used as a substitute for a variety of payment
instruments, such as cashier's checks, and could be used by businesses as part of their cash management strategy.
149
for managing the extensive sales and servicing operation necessary for handling a low unit-price, highvolume product. Such capabilities frequently are associated with banking organizations of significant size,
such as Wells Fargo. Wells Fargo's entry into this
market would result in increased competition in an
industry that currently is highly concentrated. Accordingly, the Board views Wells Fargo's proposal as
procompetitive and in the public interest.
Applicant proposes to issue and sell domestic and
international money orders with a maximum face
value of $10,000, and official checks with no limitation
on the maximum face amount. In its BankAmerica
Order, the Board noted its concern that the issuance of
such instruments with a face value of over $1,000
could result in an adverse effect on the reserve base
because such instruments are not subject to transaction account reserve requirements. Because reserve
requirements serve as an essential tool of monetary
policy, the Board was concerned that the BankAmerica proposal might result in adverse effects on monetary policy.
In order to assess the effects of that proposal on the
reserve base, the Board determined that it should
closely monitor its effects on the Board's conduct of
monetary policy. To that end, the Board approved the
BankAmerica proposal to issue such instruments with
a face value up to $10,000, but required BankAmerica
to file with the Board weekly reports of daily data on
this activity. If it appeared that the activity caused a
significant reduction in the reserve base or other
adverse effect on the conduct of monetary policy, the
Board stated that it might impose reserve requirements on such transactions, pursuant to section 19 of
the Federal Reserve Act (12 U.S.C. § 461(a)) and the
Board's Regulation D (12 C.F.R Part 204).
To address the monetary policy concerns expressed
in the Board's BankAmerica Order, Wells Fargo has
committed that it shall deposit into a demand deposit
account at its subsidiary, Wells Fargo Bank, all the
proceeds of any official check having a face value in
excess of $10,000, and the proceeds of each item will
remain in the demand account until the respective
payment instrument is paid. Weekly reports will be
made of daily data showing separately the aggregate
value of all outstanding instruments (including money
orders as well as official checks) with face values of up
to $10,000, as well as the aggregate value of all official
checks with face values exceeding $10,000.
Applicant contends that implementation of the foregoing commitments and procedures will maintain reserves at the same level as would be the case if the
Board were to approve an application to increase the
denomination of official checks available for sale by
Wells Fargo from $1,000 to $10,000 (as previously
150 Federal Reserve Bulletin • February 1986
approved by order for other bank holding companies),
but at the same time will permit Wells Fargo to
increase the efficiency and reduce the overall cost of
its payment instrument activities. Having reviewed the
proposal, the Board has determined that the commitments and procedures outlined therein sufficiently
mitigate the Board's concerns regarding potential adverse effects on the reserve base, as to allow Applicant
to commence the activity as proposed. The Board's
approval for Applicant to engage in this activity, of
course, is subject to the continued evaluation of its
potential adverse effects on monetary policy. If the
Board discerns such effects in the future, the Board
would require appropriate modification of the activity
and/or imposition of additional reserve requirements.
The record shows that the sale of these largerdenominated money orders by Wells Fargo would
increase competition in this field and enhance the
convenience of purchasers. The Board finds that these
instruments, which will be issued by a large financial
organization and will enjoy ready acceptability, will
provide benefits to the public. Moreover, there is no
evidence in the record that consummation of this
proposal would result in adverse effects, such as
unsound banking practices, unfair competition, conflicts of interests, or undue concentration of resources.
Based upon the foregoing and other considerations
reflected in the record, the Board has determined that
the balance of the public interest factors it is required
to consider under section 4(c)(8) is favorable. This
determination is subject to all of the conditions set
forth in Regulation Y, including sections 225.4(d) and
225.23(b), and to the Board's authority to require such
modification or termination of the activities of a holding company or any of its subsidiaries as the Board
finds necessary to assure compliance with the provisions and purposes of the Act and the Board's regulations and orders issued thereunder, or to prevent
evasion thereof.
The activity shall be commenced no 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 16, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Rice, and Seger. Absent and not voting:
Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary of the Board
Orders Issued
Bank Holding
Under Sections
Company
Act
3 and 4 of the
Hudson Financial Associates
Wayne, N e w Jersey
Order Approving Application to Become a Bank
Holding Company and Engage in Certain
Nonbanking Activities
Hudson Financial Associates, Wayne, New Jersey,
has applied under section 3(a)(1) of the Bank Holding
Company Act ("BHC Act"), 12 U.S.C. § 1842(a)(1),
to become a bank holding company by acquiring up to
24.9 percent of the voting shares of HUBCO, Inc.
("HUBCO"), Union City, New Jersey, a bank holding
company by virtue of its control of Hudson United
Bank ("Bank"), Union City, New Jersey. 1 Applicant
also has applied under section 4(c)(8) of the BHC Act,
12 U.S.C. § 1843(c)(8), to acquire indirectly HUB
Financial Services, Inc. ("HUB Financial"), Union
City, New Jersey. HUB Financial provides data processing services and leases personal property. The
Board has previously determined that these activities
are closely related to banking and permissible for bank
holding companies. 12 C.F.R. §§ 225.25(b)(5) and (7).
Notice of the applications, affording interested persons an opportunity to submit comments, has been
given in accordance with sections 3 and 4 of the BHC
Act, 50 Federal Register 33,107 (1985). The time for
filing comments has expired, and the Board has considered the applications and all comments received,
including those submitted by HUBCO in opposition to
the applications, in light of the factors set forth in
section 3(c) and the considerations specified in section
4 of the BHC Act.
Agreement
Goldstein
Between
Applicant
and Mr.
Sheldon
Applicant and Mr. Sheldon Goldstein have entered
into an agreement whereby Mr. Goldstein would purchase one-half of the HUBCO shares presently owned
by Applicant,2 and thereafter Applicant and
Mr. Goldstein would each purchase one-half of the
HUBCO shares offered to Mr. Seidman, as agent for
Hudson and Mr. Goldstein. HUBCO contends that
this agreement between Applicant and Mr. Goldstein
creates a company under the BHC Act and that the
1. Applicant is a limited partnership with 38 limited partners. The
general partners of Applicant are Mr. Lawrence Seidman and Mr.
Laurence Rappaport.
2. As of August 21, 1985, Applicant owned approximately 11.3
percent of the voting shares of HUBCO.
Legal Developments
application to become a bank holding company filed
solely by Hudson is improperly filed and incomplete.3
Section 2(b) of the BHC Act defines a company as
"any corporation, partnership, business trust, association, or similar organization. . ." 12 U.S.C. § 1841(b).
HUBCO contends that Hudson and Mr. Goldstein
have created a formalized structure to acquire and
manage HUBCO and Bank that would meet the definition of a "partnership" or "association" for purposes
of section 2(b) of the BHC Act. The term "association," which was added to the definition of "company" in 1970, is not defined in the BHC Act. The Board
has interpreted the term "association" to mean a
structured and somewhat formal entity controlling a
bank rather than a group of persons associated solely
through common ownership of a bank.4 In this regard,
the Board, in determining whether a structured relationship is present, has considered the existence of a
formal agreement binding the parties together as a
group, including agreements relating to the sale, transferability, or voting of any of the shares of the bank, or
relating to the operation or control of the bank.
Several factors indicate that the agreement between
Mr. Goldstein and Hudson may create an association
under the BHC Act. First, Hudson and Mr. Goldstein
have entered into a formal agreement governing the
acquisition, retention and voting of the shares of
HUBCO by each party. Second, the parties are required to purchase shares of HUBCO simultaneously
and in equal amounts. Third, the parties are obligated
to vote their shares of HUBCO in concert with each
other with respect to any nominees to the board of
HUBCO or any other matters presented to the shareholders of HUBCO. Fourth, the parties to the agreement will share certain benefits, responsibilities and
liability. For example, Mr. Goldstein has agreed to pay
one-half of reasonable legal fees incurred and actually
paid after May 1, 1985, in connection with litigation
involving HUBCO or Bank and Hudson or its general
partners.5 In addition, Hudson and Mr. Goldstein
agreed to divide equally any payment made by or
reimbursement received by Hudson for expenses incurred in connection with the prosecution, defense or
settlement of the litigation involving Hudson and
HUBCO, and any monetary judgment awarded Hudson or its general partners. Fifth, Mr. Goldstein and
3. Mr. Goldstein has filed a notice under the Change in Bank
Control Act to acquire up to 24.9 percent of HUBCO.
4. E.g., letter, dated September 13, 1977, to Mr. John P. Roemer
from Theodore Allison, ajfd, Central Bank v. Board of Governors,
No. 77-1937, slip op. (D.C. Cir. 1979). See also American Security
and Trust
Company,
6 0 FEDERAL RESERVE BULLETIN 875 (1974).
5. HUBCO's management did file suit against Hudson, Seidman
and Rappaport in the United States District Court for the District of
New Jersey, alleging violations of various federal and state securities
laws and banking laws.
151
Hudson each agreed to commit funds to purchase
HUBCO stock, pay any litigation costs relating to the
ownership of HUBCO stock, and defray the cost of
any proxy relating to HUBCO stock. Finally, absent
specified events of default by either of the parties,
Hudson and Mr. Goldstein cannot transfer or sell their
shares of HUBCO to third parties during the five-year
term of the agreement.
Based upon all of the facts of record, the Board has
determined that the agreement between Hudson and
Mr. Goldstein creates the type of structured entity that
constitutes an association within the meaning of section 2(b) of the BHC Act as long as the agreement
remains in force.6
The Board's determination that the agreement between Mr. Goldstein and Applicant creates an association under the BHC Act does not mean, however, that
the application must be denied. Hudson filed a complete application to become a bank holding company,
and provided complete notice of all aspects of this
transaction bearing on the statutory factors under
section 3(c) of the BHC Act, including details of the
agreement between Mr. Goldstein and Hudson.
Mr. Goldstein has filed with the Board a notice under
the Change in Bank Control Act, in which he has
provided detailed information concerning his financial
resources and background. Accordingly, the Board
believes that the company has complied with the
application requirements of section 3(a) of the BHC
Act to seek Board approval before becoming a bank
holding company.
Alleged Securities
Law
Violations
HUBCO contends that the violation of various Federal
securities laws by Applicant and its general partners is
an adverse managerial factor that the Board must
consider. HUBCO contends that Hudson and its general partners have violated section 13(d) of the Securities Exchange Act of 1934 ("'34 Act") by filing a
Schedule 13D with the Securities and Exchange Commission ("SEC") that was intentionally false and
misleading in several respects and also violated the '34
Act in connection with a tender offer for up to 300,000
shares of HUBCO stock.
In accordance with its established policy, the Board
has considered HUBCO's allegations in the context of
6. The Board has issued a published interpretation that certain voting trusts and buy-sell agreements will not be deemed
to be companies under the BHC Act. The agreement between Mr.
Goldstein and Hudson is not a voting trust since no provision is made
for the appointment of trustees or the issuance of voting trust
certificates. The agreement between Mr. Goldstein and the Applicant
does not meet the description of the typical buy-sell agreement and
also has several elements not present in the normal buy-sell agreement
contemplated by the Board's interpretation.
152 Federal Reserve Bulletin • February 1986
its evaluation of the financial and managerial factors in
this case. 7 The Board's review of the record does not
indicate that the alleged securities law violations by
Hudson and its general partners, even if established,
reflect any fraudulent intent by Hudson or otherwise
reflect so adversely on Hudson's managerial resources
as to warrant denial of the applications.
In this regard, the Board notes that, with respect to
the alleged violations of section 13(d) of the '34 Act,
the United States District Court for the District of
New Jersey has considered these issues and, on
November 1, 1985, dismissed the action brought by
HUBCO against Hudson and its general partners.8
With respect to the alleged violations in connection
with the tender offer, the management of HUBCO has
presented its allegations to the SEC, which is the
agency empowered to investigate alleged violations of
the securities laws.9
Adherence
to
Commitments
HUBCO also contends that Hudson and its general
partners failed to observe commitments made in connection with a notice previously filed under the
Change in Bank Control Act, 12 U.S.C. § 1817, by
Applicant and its general partners to acquire up to 14.4
percent of HUBCO. In applications under section 3 of
the BHC Act the Board considers as a relevant issue
reflecting on an applicant's management, the applicant's record of fulfilling commitments to, and any
conditions imposed by, the Board in connection with
prior applications. 12 C.F.R. § 225.13(b)(2).
The Board indicated on May 20, 1985, that it did not
intend to disapprove the Notice filed by Hudson and
its general partners. The Board relied upon commitments by Hudson and its general partners that they
would not, among other things, exercise or attempt to
exercise a controlling influence over the management
or policies of HUBCO or Bank. HUBCO contends
7. See, e.g., Suburban Bancorp, Inc., 71 FEDERAL RESERVE BULLETIN 581 (1985).
8. HUBCO, Inc., et al v. Laurence J. Rappaport, No. 84-4413,
slip, op. (D.N.J. November 1, 1985).
9. With respect to the tender offer for up to 300,000 shares of
HUBCO's stock at $18.50 per share, HUBCO alleged, in a letter to the
Director of the SEC's Division of Enforcement dated August 30,1985,
that Hudson and Mr. Goldstein had violated the SEC's rules and
regulations and the tender offer provisions of the '34 Act by its failure
to: (1) disseminate adequately information concerning the tender
offer, and that this failure may have been intended to manipulate the
market in HUBCO's stock; (2) disclose material financial information
about Hudson and Mr. Goldstein; (3) describe adequately the regulatory requirements; and (4) disclose adequately the conditions under
which the bidders could abandon the offer.
that Hudson and its general partners violated these
commitments on several occasions. 10
The Board has carefully considered the allegations
that Hudson and its general partners violated the
commitments made in connection with the Notice.
Based upon all of the facts of record, the Board has
determined that neither Hudson nor its general partners violated any of the commitments. As noted,
Hudson has filed an application with the Board to
become a bank holding company through the acquisition of control of HUBCO. The commitments were
designed to ensure that Hudson would not acquire
control of HUBCO without the Board's approval.
They were not intended to prohibit Hudson from
taking the steps incidental to a proposed acquisition of
control to be effected with the Board's approval as
required by the BHC Act. Moreover, the record does
not indicate that Hudson's principals have advanced
any specific plans or proposals with respect to the
operation or policies of HUBCO or Bank.
Mr. Seidman's comments on the litigation with which
he is directly involved provide no basis for a finding of
a violation of the commitments.
Relationship of Hudson
Limited
Partners
and Certain of Its
HUBCO contends that Hudson cannot become a bank
holding company because one of its limited partners, L
Enterprises, Wayne, New Jersey, is a real estate
development partnership. The general partners of Applicant also are general partners of L Enterprises.
Hudson has committed, however, that L Enterprises
10. HUBCO's specific allegations of violations of the commitments
are as follows. On May 21, 1985, Mr. Seidman met with some
shareholders of HUBCO to discuss the impact of litigation and proxy
solicitation costs on the earnings of HUBCO and Bank. HUBCO
contends that the purpose of this meeting was to solicit support for
Hudson's program to influence HUBCO and Bank. On May 28, 1985,
Hudson, Mr. Seidman and Mr. Rappaport amended their Schedule
13D to report that they would seek to modify the commitments, that
they intended to seek influence or control over HUBCO and its
policies and operations, and that they were negotiating with a third
party for support of their acquisition efforts. On June 18, 1985, an
article appeared in the Newark Star Ledger that reported that Mr.
Seidman wanted Bank to change its operational methods and to stop
wasting funds through litigation against him. On the same day,
Hudson entered into the agreement with Mr. Goldstein. HUBCO
contends that these facts are evidence of an attempt by Hudson, Mr.
Rappaport and Mr. Seidman to publicly intimidate the management of
HUBCO and thereby exercise influence, or control, over the management and policies of HUBCO and Bank.
Legal Developments
will divest itself of any interest in Hudson prior to the
acquisition of control of HUBCO.11
The Board has considered the competitive effects of
this application under section 3 of the BHC Act.
Hudson and the Hudson/Goldstein "association" are
non-operating companies that would control one of the
smaller banking organizations in New Jersey upon
consummation of the proposal. Bank is the 22nd
largest commercial bank in New Jersey. It controls
deposits of $322.9 million,12 which represents less than
one percent of the deposits in commercial banks in
New Jersey.
Bank operates in the Plainfield banking market and
in the Metropolitan New York banking market. Bank
is the 10th largest of 14 banks in the Plainfield banking
market,13 and controls 1.4 percent of the deposits in
the market. Bank is the 34th largest of 103 banks in the
Metropolitan New York banking market, and controls
less than one percent of the deposits in the market.
Neither Hudson nor Mr. Goldstein has any interest in
any other depository institution. Moreover, neither
Goldstein, Rappaport or Seidman serve in any official
capacity in any depository institution. Accordingly,
the Board has determined that consummation of the
proposal would have no adverse effect on competition
in the Plainfield banking market, the Metropolitan
New York banking market, or in any other relevant
market.
The Board has considered the financial and managerial resources and future prospects of Hudson, the
Hudson/Goldstein "association," HUBCO and Bank.
Based upon a careful consideration of the facts of
record, the Board has determined that financial and
managerial factors are consistent with approval. Hud-
11. Two other limited partners of Hudson are companies within the
meaning of section 2(b) of the BHC Act and involved in real estate
development and investment activities. These real estate companies
could not acquire direct or indirect control of Hudson, HUBCO or
Bank under the BHC Act. Neither of these companies controls more
than a 5 percent interest in Hudson, and neither Hudson nor its
general partners have any ownership interest in these companies. In
addition, Applicant has made several commitments designed to prevent these real estate development companies from becoming bank
holding companies with respect to Hudson, HUBCO or Bank.
12. Unless otherwise indicated, all deposit data are as of June 30,
1984.
13. The Plainfield banking market includes Middlesex County,
New Jersey, which includes Middlesex, Piscataway, South Plainfield,
and Dunnellen; Somerset County, New Jersey, excluding Bernards,
Bernardsville, Franklin, Millstone, Montgomery and Rocky Hill; and
Union County, New Jersey, including Plainfield. The Metropolitan
New York banking market is defined to include New York City,
Nassau, Putnam, Rockland, Westchester, and western Suffolk Counties in New York State; the northeastern two-thirds of Bergen County
and eastern Hudson County in New Jersey; and southwestern Fairfield County in Connecticut.
153
son will not be highly leveraged as a result of this
transaction and both Hudson and Goldstein have
adequate resources to support this transaction. Considerations relating to the convenience and needs of
the communities to be served also are consistent with
approval.
Future
Prospects
HUBCO contends that the Board should deny the
application by Hudson because the acquisition of
HUBCO's shares would only perpetuate dissension in
Bank's management without permitting Hudson to
gain actual control of HUBCO or Bank. HUBCO
relies on the Board's decision in NBC Co., 6 0 FEDERAL RESERVE BULLETIN 7 8 2 ( 1 9 7 4 ) , in support of its
position. There, the Board denied an application by
NBC Co. to acquire between 20 and 25 percent of the
shares of a bank where the application would cause
continuing management division because it was opposed by a controlling shareholder who held 50 percent of the target bank. The NBC Co. precedent does
not apply where the applicant is seeking to acquire
control and would become the largest shareholder of
the target bank or bank holding company.14
Hudson is presently the largest single shareholder of
HUBCO voting stock, and upon consummation of the
proposal, Hudson and Goldstein together will be the
largest single shareholder of HUBCO. Hudson has
applied up to 24.9 percent of HUBCO, and together
with Mr. Goldstein, would control up to 49.8 percent
of HUBCO upon consummation of this proposal. As
of December 1984, the management of HUBCO as a
group owned only 14.78 percent of HUBCO.
HUBCO's position would preclude the Board from
approving any proposal to acquire less than an absolute majority of the shares of a bank or bank holding
company if the management of the bank or bank
holding company opposes the acquisition. The BHC
Act, however, recognizes that control of a bank or
bank holding company is possible without ownership
of an absolute majority of voting shares. After careful
consideration of HUBCO's argument, the Board cannot conclude that consummation of the proposal
would impair the future prospects of HUBCO or
Bank.
14. City Holding Company, 71 FEDERAL RESERVE BULLETIN 575
(1985).
154 Federal Reserve Bulletin • February 1986
Request
for
Hearing
HUBCO also has requested that the Board conduct a
formal hearing concerning the application by Hudson
and the notice by Mr. Goldstein in order to develop a
full factual record. The Board is not required under
section 3(b) of the BHC Act, 12 U.S.C. § 1842(b), to
hold a hearing since neither the primary supervisor of
HUBCO nor Bank requested the Board to conduct a
hearing. The Board has reviewed the record of these
applications, and has determined that HUBCO's arguments relate to the interpretation or significance to be
accorded undisputed facts of record. Moreover, all
parties have had an ample opportunity to present their
arguments in writing and respond to all the submissions by each other. Accordingly, the Board has
determined that a hearing would serve no useful
purpose and HUBCO's request for a formal hearing is
hereby denied.
Applicant also has applied under section 4(c)(8) of
the BHC Act to acquire indirectly HUB Financial.
HUB Financial provides data processing services and
leases personal property. The Board has previously
found that these activities are closely related to banking and permissible for bank holding companies.
12 C.F.R. §§ 225.25(b)(5) and (b)(7).
There is no evidence in the record to indicate that
consummation of the proposal would result in any
adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of
interests or unsound banking practices. Neither Hudson nor Mr. Goldstein is involved in leasing personal
property or providing data processing services. Accordingly, the Board has determined that the balance
of public interest factors it must consider under section 4(c)(8) of the BHC Act is favorable and consistent
with approval of the proposal.
Based upon the foregoing and other facts of record,
the Board has determined that the applications under
sections 3 and 4 of the BHC Act should be and hereby
are approved. The acquisition of HUBCO's subsidiary
bank shall not be consummated before the thirtieth
calendar day following the effective date of this Order.
Neither the banking acquisition nor the nonbanking
acquisition shall occur later than three months after
the effective date of this Order, unless that period is
extended for good cause by the Board or by the
Federal Reserve Bank of New York, acting pursuant
to delegated authority. The determination with respect
to the acquisition of HUB Financial is 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 the Board's authority
to require such modification or termination of the
activities of a holding company or any of its subsidiar
ies as the Board finds necessary to assure compliance
with the provisions and purposes of the BHC Act and
the Board's regulations and orders issued thereunder,
or to prevent evasion thereof.
By order of the Board of Governors, effective
December 10, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Rice, and Seger. Absent and not voting:
Governor Wallich.
JAMES M C A F E E
[SEALI
Associate
Secretary of the Board
Louisiana Bancshares, Inc.
Baton Rouge, Louisiana
Order Approving the Merger of Bank Holding
Companies and the Acquisition of a Nonbank
Subsidiary
Louisiana Bancshares, Inc., Baton Rouge, Louisiana,
a bank holding company within the meaning of the
Bank Holding Company Act (12 U.S.C. § 1841
et seq.) ("Act"), has applied for the Board's approval
under section 3(a)(5) of the Act (12 U.S.C.
§ 1842(a)(5)) to merge with The Terrebonne Corporation, Houma, Louisiana ("Company"), and indirectly
to acquire Terrebonne Bank and Trust Company,
Houma, Louisiana ("Bank").
Applicant has also 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 of the Board's Regulation Y (12 C.F.R. § 225.23) to acquire Terre Agency,
Inc., Houma, Louisiana, a subsidiary of Company that
engages in the activity of acting as agent in the sale of
credit life, credit accident, and credit health insurance
directly related to extensions of credit by Bank.1
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
(50 Federal Register 41,023 (1985)). The time for filing
comments and views 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.
1. Company has another subsidiary, Terrealty, which will be divested upon consummation of this transaction.
Legal Developments
Applicant is the largest commercial banking organization in Louisiana, controlling deposits of $3.5 billion, representing 11.9 percent of the total deposits in
commercial banking organizations in the state.2 Company is the 24th largest commercial banking organization in the state, controlling deposits of $286.5 million,
representing approximately 1.0 percent of total deposits in commercial banking organizations in the state.
Upon consummation of this proposal, Applicant
would control deposits of $3.8 billion, representing
12.9 percent of total deposits in commercial banking
organizations in the state. Consummation of this proposal would have no significant effect on the concentration of banking resources in Louisiana.
Applicant and Company compete in the HoumaThibodaux banking market.3 Applicant is the fourth
largest of twelve commercial banking organizations in
the Houma-Thibodaux market, controlling 13 percent
of total deposits in commercial banks therein. Bank is
the largest commercial bank in the market, controlling
21 percent of total deposits in commercial banks
therein.4 Upon consummation of this proposal, Applicant would become the largest commercial banking
organization in the market, controlling 34 percent of
the total deposits in commercial banks in the market.
The Houma-Thibodaux banking market is not highly
concentrated and would not become highly concentrated upon consummation of this proposal. The share
of deposits held by the four largest commercial banks
is 66.9 percent and the market's Herfindahl-Hirschman Index ("HHI") is 1155. Consummation of this
transaction would increase the market's HHI by 548
points to 1703, and the four-firm concentration ratio
would increase to 75 percent. The increase in the HHI
would make this transaction one that would be subject
to challenge under the Department of Justice Merger
Guidelines.5
Although consummation of the proposal would eliminate existing competition between Applicant and
2. Banking data are as of December 31, 1984, unless otherwise
indicated.
3. The Houma-Thibodaux banking market is approximated by the
Houma-Thibodaux Metropolitan Statistical Area, which consists of
Lafourche and Terrebonne Parishes in Louisiana.
4. All market data are as of June 30, 1984.
5. Under the revised Department of Justice Merger Guidelines (49
Federal Register 26,823 (June 29, 1984)), any market in which the
post-merger HHI is between 1000 and 1800 is considered moderately
concentrated, and the Department is likely to challenge a merger that
increases the HHI by more than 100 points, unless other facts of
record indicate that the merger is not likely substantially to lessen
competition. The Department has informed the Board that a bank
merger or acquisition generally will not be challenged (in the absence
of other factors indicating anticompetitive effects) unless the postmerger HHI is at least 1800 and the merger increases the HHI by at
least 200 points.
155
Company in the market, numerous other commercial
banking organizations would remain as competitors
after consummation of the proposal. In addition, the
effect of this proposal on existing competition is further mitigated by the extent of competition offered by
thrift institutions in the market.6 Six thrift institutions
hold 25.6 percent of the total deposits in the market.
These institutions compete with the commercial banks
in the market for transaction accounts, consumer
loans and commercial loans. In view of these facts, the
Board considers the presence of thrift institutions a
significant factor in assessing the competitive effects
of this proposal.7 Accordingly, in view of the competition provided by thrift institutions and the number and
size of competitors remaining in the market, the Board
concludes that consummation of the proposed acquisition is not likely to have a significant adverse effect on
competition in the Houma-Thibodaux banking market.
The financial and managerial resources of Applicant, Terrebonne and their respective subsidiary
banks are generally satisfactory and consistent with
approval. Applicant will incur no debt as a result of
this transaction. Accordingly, the Board concludes
that banking factors are consistent with approval of
this proposal. Considerations relating to the convenience and needs of the community to be served are
also consistent with approval.
Applicant has also applied, pursuant to section
4(c)(8) of the Act, to acquire Terre Agency, Inc.
("Agency"). Agency presently acts as agent in the
sale of life, accident and health insurance to assure
repayment of extensions of credit by Bank. Applicant
and Agency do not compete in the sale of life, accident
or health insurance in any market. Accordingly, the
proposed acquisition would not have any effect on
competition for insurance services in any relevant
market. Furthermore, there is no evidence in the
record to indicate that approval of this proposal would
result in undue concentration of resources, unfair
competition, conflicts of interests, unsound banking
practices, or other adverse effects on the public inter-
6. 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
(1984); Sun Banks, Inc., 69 FEDERAL RESERVE BULLETIN 934 (1983);
Merchants
Bancorp,
Inc.,
6 9 FEDERAL RESERVE
BULLETIN
865
(1983); First Tennessee National Corporation, 69 FEDERAL RESERVE
BULLETIN 298 (1983).
7. If 50 percent of the deposits held by thrift institutions were
included in the calculation of market concentration, upon consummation of the proposal, Applicant would control 30.3 percent of the total
deposits in the market. Consummation of the proposal would increase
the HHI by 431 points, from 1089 to 1520.
156 Federal Reserve Bulletin • February 1986
est. 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
Agency.
Based on the foregoing and other 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 merger shall not be consummated
before the thirtieth calendar day following the effective
date of this Order, and neither the merger nor the
acquisition of Agency shall occur 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 pursuant to
delegated authority. The determination as to Applicant's nonbanking activity is subject to the conditions
set forth in Regulation Y, including those in sections
225.4(d) and 225.23(b), and to the Board's authority to
require such modification or termination of the activities of a holding company or any of its subsidiaries as
the Board finds necessary to assure compliance with
the provisions and purposes of the Act and the Board's
regulations and orders issued thereunder, or to prevent evasion thereof.
By order of the Board of Governors, effective
December 17, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Rice, and Seger. Absent and not voting:
Governor Wallich.
JAMES M C A F E E
Associate
[SEAL]
Orders Issued
Secretary of the Board
Under the Federal
Reserve
Act
Citibank O v e r s e a s I n v e s t m e n t C o r p o r a t i o n
Wilmington, D e l a w a r e
Order Approving Additional Activity under Section
25(a) of the Federal Reserve Act
Citibank
Overseas
Investment
Corporation
("COIC"), Wilmington, Delaware, has applied for the
Board's consent under section 25(a) of the Federal
Reserve Act (12 U.S.C. § 615(c)) and section 211.5(d)
of the Board's Regulation K (12 C.F.R. § 211.5(d)) to
engage indirectly through a de novo company, Hong
Kong Real Estate Agency Ltd ("Agency"), Hong
Kong, in real estate brokerage. The proposed activities of Agency would include identifying and locating
properties for buyers; locating and introducing potential buyers to owners of properties; acting as interme
diary in negotiations; and providing ancillary services
to buyers and sellers.
COIC, with consolidated assets of approximately
$13.0 billion as of year-end 1984, is a corporation
organized under section 25(a) of the Federal Reserve
Act (an "Edge Corporation") and is a wholly owned
subsidiary of Citibank, N.A., New York, New York.
Citibank is a subsidiary of Citicorp, New York, New
York, the largest commercial banking organization in
the United States, with consolidated assets of $169
billion as of September 30, 1985.
In reviewing proposals by U.S. banking organizations to engage in activities overseas, the Board has
recognized that in other banking and financial systems, local institutions are often permitted to engage in
activities that would not be permissible for United
States banking organizations under applicable United
States laws and regulations. In the Edge Act and the
Bank Holding Company Act, the Board has been
granted authority to permit activities abroad that are
generally not authorized in the United States for bank
holding companies.
In the exercise of that authority, the Board has
adhered to the policy that the foreign activities that it
authorizes should be of a banking or financial, as
opposed to commercial, nature, or that such activities
should be usual in connection with banking or other
financial operations abroad. The Board may also consider whether conduct of the activity will enable the
U.S. banking organization to compete effectively with
foreign organizations. In addition, the Board takes into
account whether the performance of the activity by a
United States banking organization overseas is consistent with the prudent conduct and management of
the company's banking and nonbanking operations,
and the effect of the activity on the capital and
managerial resources of the U.S. banking organization. The activity of acting as a real estate broker is not
contained in the list of activities that the Board has
found to be usual in connection with the transaction of
banking or financial operations abroad. 12 C.F.R.
§ 211.5(d).
In support of its application, COIC has asserted that
a number of major banking organizations in Hong
Kong offer real estate brokerage services either directly or through subsidiaries and has provided materials
relating to advertising of such services by several of
these banks. COIC also asserts that the activity can be
considered a natural extension of the Citicorp organization's real estate lending activities and would enable
Citicorp to provide a more complete range of services
to its customers in Hong Kong.
The banking organizations that provide real estate
brokerage services in Hong Kong appear to be among
the largest in the market, holding a substantial percent-
Legal Developments
age of the deposits in commercial banks and other
deposit-takers in Hong Kong. It is these organizations,
as well as local offices and affiliates of other foreign
banks, with which Citicorp competes in Hong Kong.
Although the activities proposed are not inherently
banking in nature, it appears that the ability to offer
such services would complement other activities permitted to the Citicorp organization. By providing such
services to customers, Citicorp would be better able to
compete with other local organizations in the provision of banking and financial services in Hong Kong.
Based on all of the facts reflected in the record, the
Board concludes that acting as a real estate broker can
be considered usual in connection with the transaction
of banking and financial operations in Hong Kong.
In assessing the risks associated with this activity,
the Board notes that the activity will require a minimal
amount of capital and other financial resources. The
activities are fee-based and non-leveraged and will not
subject Agency to any special liability. Agency will not
purchase any real estate for its own account nor will it
take title to real property on an interim basis for any
customer. COIC expects to develop a customer base
from customer referrals from other parts of the Citicorp organization. It has committed, however, that
157
there will be no requirement that a customer of Agency must accept services from Citicorp affiliates and
that Citicorp's other customers will not be required to
take services from Agency. In addition, Agency will
have no involvement in the credit application and
approval process for properties that it handles. Therefore, it does not appear that the proposal presents any
undue risks or other adverse effects.
In reliance on all of the factors specified above, and
other considerations reflected in the record, the Board
has concluded that the proposed activity in the circumstances of this case may be considered usual in connection with the transaction of banking or other financial operations in Hong Kong, and that its
performance by COIC would not be inconsistent with
the supervisory purposes of the Federal Reserve Act.
Accordingly, the application is approved.
By order of the Board of Governors, effective
December 9, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Rice, and Seger. Absent and not voting:
Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary of the Board
ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT
By Federal
Reserve
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
American National Financial
Corporation,
Panama City, Florida
Associated Banc-Corp,
Green Bay, Wisconsin
Benton Capital Corporation,
Benton, Louisiana
Big Lake Financial Corporation,
Okeechobee, Florida
Cahaba Bancorp,
Trussville, Alabama
Capital City Bank Group, Inc.,
Tallahassee, Florida
Bank(s)
Reserve
Bank
Effective
date
The American National Bank,
Panama City, Florida
Atlanta
December 11, 1985
Memorial Drive Bank,
Sheboygan, Wisconsin
East River Bancshares, Inc.,
Benton, Louisiana
Big Lake National Bank,
Okeechobee, Florida
Cahaba Bank & Trust,
Trussville, Alabama
Farmers and Merchants Bank of
Trenton,
Trenton, Florida
Chicago
December 3, 1985
Dallas
December 10, 1985
Atlanta
November 26, 1985
Atlanta
November 26, 1985
Atlanta
December 16, 1985
158 Federal Reserve Bulletin • February 1986
Section 3—Continued
Applicant
Cattleman's Bancshares, Inc.,
Gordon, Texas
Citizens Community
Bank shares, Inc.,
Wittenberg, Wisconsin
Cloverdale Bank Corporation,
Cloverdale, Indiana
CNB Financial Corporation,
Kansas City, Kansas
Cochranton Bancorp, Inc.,
Cochranton, Pennsylvania
Cullman Bancshares, Inc.,
Cullman, Alabama
Dermott Bancshares, Inc.,
Dermott, Arkansas
Duncanville Bancshares, Inc.,
Duncanville, Texas
Eudora Bancshares, Inc.,
Eudora, Kansas
Fannin Bancorp, Inc.,
Windom, Texas
Farmers & Merchants Walterboro Bancshares Corporation,
Walterboro, South Carolina
First American Bancshares,
Inc.,
Bay town, Texas
First American Bancshares,
Inc.,
North Little Rock, Arkansas
1st Bancorp Vienna,
Vienna, Illinois
First Burke Banking Company,
Waynesboro, Georgia
First Busey Corporation,
Urbana, Illinois
First Colonial Bankshares
Corporation,
Chicago, Illinois
First Commercial Financial
Corporation,
Bradenton, Florida
First Financial Corporation,
Terre Haute, Indiana
First Interstate Hawaii, Inc.,
Honolulu, Hawaii
Bank(s)
Reserve
Bank
Effective
date
Dallas
November 29, 1985
Chicago
December 4, 1985
The First National Bank of
Cloverdale,
Cloverdale, Indiana
United Kansas Bancshares, Inc.,
Atchison, Kansas
The First National Bank of
Cochranton,
Cochranton, Pennsylvania
Peoples Bank of Cullman County,
Cullman, Alabama
First Delta Financial Corporation,
Dermott, Arkansas
First State Bank of Texas,
Duncanville, Texas
Kaw Valley State Bank,
Eudora, Kansas
Fannin Bank,
Windom, Texas
Farmers & Merchants Bank,
Walterboro, South Carolina
Chicago
December 2, 1985
Kansas City
November 27, 1985
Cleveland
December 3, 1985
Atlanta
November 26, 1985
St. Louis
December 12, 1985
Dallas
December 13, 1985
Kansas City
November 29, 1985
Dallas
November 27, 1985
Richmond
December 5, 1985
First American Bank and Trust of
Friendswood,
Friendswood, Texas
Bank of Mulberry,
Mulberry, Arkansas
Dallas
November 29, 1985
St. Louis
December 4, 1985
First State Bank of Vienna,
Vienna, Illinois
The First National Bank of
Waynesboro,
Waynesboro, Georgia
Farmers State Bank of Hey worth,
Hey worth, Illinois
All American Bank of Chicago,
Chicago, Illinois
Northwest Commerce Bank,
Rosemont, Illinois
First Commercial Bank of
Manatee County,
Bradenton, Florida
The Citizens State Bank,
Newport, Indiana
First Interstate Bank of Hawaii,
Honolulu, Hawaii
St. Louis
December 10, 1985
Atlanta
December 9, 1985
Chicago
December 23, 1985
Chicago
November 29, 1985
Atlanta
December 5, 1985
Chicago
December 11, 1985
San Francisco
November 27, 1985
The First National Bank of
Gordon,
Gordon, Texas
FS Bancshares, Inc.,
Stetsonville, Wisconsin
Legal Developments
159
Section 3—Continued
Applicant
First Midwest Financial
Corporation,
Hanover Park, Illinois
First of America Bank
Corporation,
Kalamazoo, Michigan
First Western Bancorp, Inc.,
New Castle, Pennsylvania
Foresight Financial Group, Inc.,
Freeport, Illinois
Gassaway Bancshares, Inc.,
Gassaway, West Virginia
Gibsland Bancshares, Inc.,
Gibsland, Louisiana
Independent Bank Corp.,
Rockland, Massachusetts
Lynxx Banking Corporation,
Little Rock, Arkansas
Macon Capital Corporation,
Prattville, Alabama
Mapleton Bancshares, Inc.,
Mapleton, Minnesota
Metropolitan Bancshares, Inc.,
Springfield, Missouri
Ocean Bankshares, Inc.,
Miami, Florida
Olde Windsor Bancorp, Inc.,
Windsor, Connecticut
Patterson Bankshares, Inc.,
Patterson, Georgia
The Peoples Bancshares
Corporation,
Van Wert, Ohio
Peoples National of LaFollette
Financial Corporation,
LaFollette, Tennessee
Rosendale Bancshares, Inc.,
Rosendale, Wisconsin
St. Stephen Bancorporation,
Minneapolis, Minnesota
Bank(s)
First State Bank & Trust
Company of Hanover Park,
Hanover Park, Illinois
Michigan National Bank-Grand
Traverse,
Traverse City, Michigan
Michigan National Bank-North,
Petoskey, Michigan
Beaver Trust Company,
Beaver, Pennsylvania
German-American State Bank,
German Valley, Illinois
State Bank of Davis,
Davis, Illinois
Bank of Gassaway,
Gassaway, West Virginia
Gibsland Bank & Trust
Company,
Gibsland, Louisiana
Rockland Trust Company,
Rockland, Massachusetts
Middleborough Trust Company,
Middleboro, Massachusetts
Farmers and Merchants Bank,
Rogers, Arkansas
First National Bank,
Bentonville, Arkansas
Alabama Exchange Bank,
Tuskegee, Alabama
First National Bank of Mapleton,
Mapleton, Minnesota
Metropolitan National Bank,
Springfield, Missouri
Ocean Bank of Miami,
Miami, Florida
New England Bank and Trust
Company,
Enfield, Connecticut
The Patterson Bank,
Patterson, Georgia
The Peoples Bank and Trust
Company,
Van Wert, Ohio
The Peoples National Bank of
LaFollette,
LaFollette, Tennessee
Rosendale State Bank,
Rosendale, Wisconsin
St. Stephen State Bank,
St. Stephen, Minnesota
Reserve
Bank
Effective
date
Chicago
November 26, 1985
Chicago
December 18, 1985
Cleveland
December 5, 1985
Chicago
November 29, 1985
Richmond
December 12, 1985
Dallas
December 12, 1985
Boston
December 4, 1985
St. Louis
December 13, 1985
Atlanta
December 9, 1985
Minneapolis
December 4, 1985
St. Louis
December 5, 1985
Atlanta
December 9, 1985
Boston
December 16, 1985
Atlanta
December 10, 1985
Cleveland
December 10, 1985
Atlanta
December 17, 1985
Chicago
December 11, 1985
Minneapolis
December 4, 1985
160 Federal Reserve Bulletin • February 1986
Section 3—Continued
.
Applicant
Security Bank Shares, Inc.,
Port Wing, Wisconsin
7L Corporation,
Tampa, Florida
South Alabama Bancorporation,
Inc.,
Brewton, Alabama
Southern National Corporation,
Lumberton, North Carolina
SSB, Inc.,
Manistique, Michigan
Summcorp,
Fort Wayne, Indiana
Sun Belt Bancshares
Corporation,
Conroe, Texas
Texas American Bancshares,
Inc.,
Fort Worth, Texas
Union National Corporation,
Mount Lebanon,
Pennsylvania
USA FIRSTRUST, INC.,
Oglesby, Illinois
Wayne Bancorp, Inc.,
Wooster, Ohio
Wesbanco, Inc.,
Wheeling, West Virginia
Wichita Falls Bancshares, Inc.,
Wichita Falls, Texas
r» i / \
Bank(s)
Bank of New Auburn,
New Auburn, Wisconsin
First Florida Banks, Inc.,
Tampa, Florida
The First National Bank,
Brewton, Alabama
Reserve
^
Effective
date
Minneapolis
December 16, 1985
Atlanta
November 29, 1985
Atlanta
December 6, 1985
Horry County National Bank,
Loris, South Carolina
The State Savings Bank of
Manistique,
Manistique, Michigan
Decatur Financial, Inc.,
Decatur, Indiana
National Bank of Conroe,
Conroe, Texas
Richmond
December 6, 1985
Minneapolis
December 13, 1985
Chicago
November 27, 1985
Dallas
December 13, 1985
BancTEXAS Tyler, N.A.,
Tyler, Texas
Dallas
December 16, 1985
First Financial Group, Inc.,
Washington, Pennsylvania
Cleveland
December 11, 1985
First National Bank of Oglesby,
Oglesby, Illinois
The Wayne County National
Bank of Wooster,
Wooster, Ohio
Wellsburg National Bank,
Wellsburg, West Virginia
First National Bank,
Wichita Falls, Texas
Chicago
December 6, 1985
Cleveland
December 6, 1985
Cleveland
November 29, 1985
Dallas
December 13, 1985
Section 4
Applicant
Bank of Virginia Company,
Richmond, Virginia
The Sanwa Bank, Limited,
Higashi-ku, Osaka, Japan
Bank(s)/Nonbanking
Company
Internet, Inc.,
Reston, Virginia
to acquire certain assets from two
subsidiaries of Commercial
Credit Company,
Baltimore, Maryland
Reserve
Bank
Effective
date
Richmond
December 13, 1985
San Francisco
November 26, 1985
Legal Developments
161
ORDERS APPROVED UNDER BANK MERGER ACT
By Federal Reserve
Banks
Applicant
Beaver Trust Company ,
Beaver, Pennsylvania
First Railroad & Banking
Company of Georgia,
Augusta, Georgia
First Railroad & Banking
Company of Georgia,
Augusta, Georgia
First Railroad & Banking
Company of Georgia,
Augusta, Georgia
Boca Bank,
Boca Raton, Florida
ONB Merger Bank I,
Greencastle, Indiana
Reserve
Bank
Bank(s)
Beaver Trust Company Interim
Bank,
Beaver, Pennsylvania
Georgia State Bank,
Martinez, Georgia
Gwinnett Bank & Trust
Company,
Norcross, Georgia
Washington Loan and Banking
Company,
Washington, Georgia
Boca Interim Bank,
Boca Raton, Florida
First-Citizens Bank and Trust
Company,
Greencastle, Indiana
Effective
date
Cleveland
December 18, 1985
Atlanta
November 27, 1985
Atlanta
November 27, 1985
Atlanta
November 27, 1985
Atlanta
December 16, 1985
Chicago
November 29, 1985
PENDING CASES INVOLVING THE BOARD OF GOVERNORS
This list of pending cases does not include suits against the Federal Reserve Banks in which the Board of
Governors is not named a party.
First National Bank of Blue Island Employee Stock
Ownership Plan v. Board of Governors, No. 852615 (7th Cir., filed Sept. 23, 1985).
First National Bancshares II v. Board of Governors,
No. 85-3702 (6th Cir., filed Sept. 4, 1985).
Independent Community Bankers Associaton of South
Dakota v. Board of Governors, No. 84-1496 (D.C.
Cir., filed Aug. 7, 1985).
Florida Bankers Association, et al. v. Board of Governors, No. 85-193 (U.S., filed Aug. 5, 1985).
Populist Party of Iowa v. Federal Reserve Board, No.
85-626-B (S.D. Iowa, filed Aug. 2, 1985).
John R. Urwyler, et al. v. Internal Revenue Service, et
al., No. CV-F-85-402 REC (E.D. Cal., filed July 18,
1985).
Broad Street National Bank of Trenton v. Board of
Governors, No. 85-3387 (3d Cir., filed July 17,
1985).
Legal Developments
Wight, et al. v. Internal Revenue Service, et al., No.
CIV S-85-0012 MLS (E.D. Cal., filed July 12,1985).
Cook v. Spillman, et al, No. CIV S-85-0953 EJG
(E.D. Cal. filed July 10, 1985).
Calhoun, et al. v. Board of Governors, No. 85-1750
(D.D.C., filed May 30, 1985).
Florida Bankers Association v. Board of Governors,
No. 84-3883 and No. 84-3884 (11th Cir., filed Feb.
15, 1985).
Florida Department of Banking v. Board of Governors, No. 84-3831 (11th Cir., filed Feb. 15, 1985),
and No. 84-3832 (11th Cir., filed Feb. 15, 1985).
Dimension Financial Corporation v. Board of Governors, No. 84-1274 (U.S., filed Feb. 6, 1985).
Lewis v. Volcker, et al., No. C-1-85-0099 (S.D. Ohio,
filed Jan. 14, 1985).
Brown v. United States Congress, et al., No. 84-28876(IG) (S.D. Cal., filed Dec. 7, 1984).
continued
on the following
page.
162 Federal Reserve Bulletin • February 1986
Seattle Bancorporation, et al. v. Board of Governors,
No 84-7535 (9th Cir., filed Aug. 15, 1984).
Melcher v. Federal Open Market Committee, No. 841335 (D.D.C., filed Apr. 30, 1984).
State of Ohio v. Board of Governors, No. 84-1270
(10th Cir., filed Jan. 30, 1984).
Colorado Industrial Bankers Association v. Board of
Governors, No. 84-1122 (10th Cir., filed Jan. 27,
1984).
First Bancorporation v. Board of Governors, No. 841011 (10th Cir., filed Jan. 5, 1984).
Oklahoma Bankers Association v. Federal Reserve
Board, No. 83-2591 (10th Cir., filed Dec. 13, 1983).
The Committee For Monetary Reform, et al. v. Board
of Governors, No. 84-5067 (D.D.C., filed June 16,
1983).
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).
AL
Financial and Business Statistics
CONTENTS
Domestic
WEEKLY REPORTING COMMERCIAL BANKS
Financial
Statistics
MONEY STOCK AND BANK CREDIT
A3 Reserves, money stock, liquid assets, and debt
measures
A4 Reserves of depository institutions, Reserve
Bank credit
A5 Reserves and borrowings—Depository
institutions
A5 Federal funds and repurchase agreements—
Large member banks
POLICY INSTRUMENTS
A6 Federal Reserve Bank interest rates
A7 Reserve requirements of depository institutions
A8 Maximum interest rates payable on time and
savings deposits at federally insured institutions
A9 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 Loans and securities—All commercial banks
COMMERCIAL BANKING
INSTITUTIONS
A17 Major nondeposit funds
A18 Assets and liabilities, last-Wednesday-of-month
series
A19
A20
A21
A22
Assets and liabilities
All reporting banks
Banks in New York City
Branches and agencies of foreign banks
Gross demand deposits—individuals,
partnerships, and corporations
FINANCIAL
MARKETS
A23 Commercial paper and bankers dollar
acceptances outstanding
A23 Prime rate charged by banks on short-term
business loans
A24 Interest rates—money and capital markets
A25 Stock market—Selected statistics
A26 Selected financial institutions—Selected assets
and liabilities
FEDERAL FINANCE
A28
A29
A30
A30
Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types and
ownership
A31 U.S. government securities dealers—
Transactions
A32 U.S. government securities dealers—Positions
and financing
A33 Federal and federally sponsored credit
agencies—Debt outstanding
SECURITIES MARKETS AND
CORPORATE FINANCE
A34 New security issues—State and local
governments and corporations
A35 Open-end investment companies—Net sales and
asset position
2
Federal Reserve Bulletin • February 1986
A35 Corporate profits and their distribution
A36 Nonfinancial corporations—Assets and
liabilities
A36 Total nonfarm business expenditures on new
plant and equipment
A37 Domestic finance companies—Assets and
liabilities and business credit
A54 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
A38 Mortgage markets
A39 Mortgage debt outstanding
CONSUMER INSTALLMENT
CREDIT
A40 Total outstanding and net change
A41 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
A42 Funds raised in U.S. credit markets
A43 Direct and indirect sources of funds to credit
markets
A63 Liabilities to unaffiliated foreigners
A64 Claims on unaffiliated foreigners
SECURITIES HOLDINGS AND
Domestic Nonfinancial
SELECTED MEASURES
A44 Nonfinancial business activity—Selected
measures
A45 Labor force, employment, and unemployment
A46 Output, capacity, and capacity utilization
A47 Industrial production—Indexes and gross value
A49 Housing and construction
A50 Consumer and producer prices
A51 Gross national product and income
A52 Personal income and saving
International
Statistics
SUMMARY STATISTICS
A53 U.S. international transactions—Summary
A54 U.S. foreign trade
A54 U.S. reserve assets
TRANSACTIONS
Statistics
A65 Foreign transactions in securities
A66 Marketable U.S. Treasury bonds and notes—
Foreign transactions
INTEREST AND EXCHANGE RATES
A67 Discount rates of foreign central banks
A67 Foreign short-term interest rates
A68 Foreign exchange rates
A69 Guide to Tabular Presentation,
Statistical Releases, and Special
Tables
Money
Stock
and Bank Credit
A3
1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent) 1
Item
1984
Q4
Ql
Q2
1985
Q3
July
Aug.
Sept.
Oct.
Nov.
institutions2
1
2
3
4
Reserves of depository
Total
Required
Nonborrowed
Monetary base 3
5
6
7
8
9
Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt
Nontransaction
10 InM2 5
11 In M3 only 6
1985
3.8
3.0
36.3
4.7
17.4
16.9
57.3
8.2
12.2
12.3
14.1
7.5
16.4
17.1
18.2
10.2'
12.2
13.9
15.4
6.8
16.5
17.7
18.0
13.3'
8.7
13.5
2.8
7.0
3.2
9.1
11.0
9.6
14.0
10.6
12.1
10.7
10.0
13.6
10.2
5.3
5.3'
6.(K
11.8r
15.C
10.2
8.3'
9.0'
12.3'
9.3
8.6
4.9'
6.2'
12.&-
20.3'
11.3
9.7'
12.4'
12.0'
ll.P
7.1'
10.1
lO.O'
11.(V
2.1'
3.9'
n.a.
n.a.
13.2
6.6
5.1
n.a.
n.a.
10.9
18.7
12.5
5.5
3.8
5.1'
8.7
.8'
8.4
-9.5'
8.4
3.4'
5.6'
22.3
3.3
10.9'
4.6
-1.1
-10.4
6.9
12.2
-8.7
-1.8
2.6
-1.7
6.5
8.3
11.3
-4.4
-3.2
12.8
-7.1
-9.0'
9.7
-13.3
8.6'
3.9
-4.1
23.8'
4.8
-3.1
18.9'
1.9
-.3
12.1
-6.6
15.2
29.8
2.2
1.7
21.0
3.1
3.9
2.6
14.7
-4.6
-2.8
18.3
-7.9
-16.9
22.9
-13.9
-3.9
6.8
-6.6
15.6
14.9
-4.1'
3.1
7.4
.0
11.5
16.1
13.3
9.2
15.2'
13.1'
10.1
12.3
11.6
9.7
14.6'
ll^
9.6
11.4'
10.9
8.7
12.5
2.0
n.a.
n.a.
16.4
4.0
1.6'
7.0
6.1
- ! . & •
19.7
15.2
4.7
10.1
components
Time and savings deposits
Commercial banks
Savings7
Small-denomination time 8
Large-denomination time 9,10
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, Money Market Deposit Accounts
(MMDAs), savings and small-denomination time deposits (time deposits—including retail RPs—in amounts of less than $100,000), and balances in both taxable and
tax-exempt general purpose and broker/dealer money market mutual funds.
Excludes individual retirement accounts (IRA) and Keogh balances at depository
institutions and money market funds. Also excludes all balances held by U.S.
14.2'
11.4'
6.5
7.7'
12.1'
8.2
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. 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 bymoney market mutual funds, depository institutions, and foreign banks and
officii institutions.
11. Changes calculated from figures shown in table 1.23.
A4
DomesticNonfinancialStatistics • February 1986
1.11
RESERVES OF DEPOSITORY INSTITUTIONS A N D RESERVE B A N K CREDIT
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week ending
1985
1985
Factors
Sept.
Oct.
Nov.
Oct. 16
194,350
193,817
196,936
193,731
195,568
193,075
195,109
* 198,178
196,468
198,854
171,246
170,503
743
8,428
8,227
201
0
1,283
779
12,614
11,090
4,618
16,892'
170,018
170,018
0
8,227
8,227
0
0
1,140
669
13,763
11,090
4,692
16,943'
171,234
170,943
291
8,362
8,227
135
0
1,920
1,203
14,217
11,090
4,718
16,994
170,667
170,667
0
8,227
8,227
0
0
935
500
13,402
11,090
4,718
16,938
171,140
171,140
0
8,227
8,227
0
0
1,301
869
14,031
11,090
4,718
16,950
168,755
168,755
0
8,227
8,227
0
0
1,025
566
14,502
11,090
4,718
16,962
170,611
170,611
0
8,227
8,227
0
0
1,125
369
14,777
11,090
4,718
16,973
172,407
172,180
227
8,476
8,227
249
0
791
1,471
15,033
11,090
4,718
16,985
171,242
170,222
1,020
8,556
8,227
329
0
1,565
1,494
13,610
11,090
4,718
16,997
171,384
171,384
0
8,227
8,227
0
0
4,282
1,287'
13,674
11,090
4,718
17,009
188,364'
546
189,053'
543
191,396
553
189,784
541
189,401
544
188,520
544
189,786
547
191,389
554
191,553
554
191,743
554
4,275
235
1,607
3,006
214
1,738
2,925
242
1,795
2,945
203
1,832
3,650
193
1,809
2,664
203
1,671
3,107
236
1,683
3,064
229
1,714
3,008
231
1,718
2,587
246
1,729
Oct. 23
Oct. 30
Nov. 6
Nov. 13
Nov. 20
Nov. 27
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit
2
U.S. government securities 1
3
Bought outright
Held under repurchase a g r e e m e n t s . . . .
4
5
Federal agency obligations
Bought outright
6
Held under repurchase a g r e e m e n t s . . . .
7
8
Acceptances
9
Loans
10 Float
11 Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate a c c o u n t . . . .
14 Treasury currency outstanding
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and adjustments . . . .
20 Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks 2
466
446
574
545
441
375
624
473
667
518
6,274
6,270
6,339
6,226
6,233
6,170
6,366
6,343
6,267
6,390
25,183
25,272
25,914
24,400
26,056
25,697
25,539
27,207
25,274
27,903
End-of-month figures
Wednesday figures
1985
1985
Sept.
Oct.
Nov.
194,148
192,884
194,729
194,398
198,249
186,296
169,702
169,702
0
8,227
8,227
0
0
2,520
69
13,630
168,705
168,705
0
8,227
8,227
0
0
886
335
14,731
169,168
169,168
0
8,227
8,227
0
0
1,602
909
14,823
170,238
170,238
0
8,227
8,227
0
0
887
1,500
13,546
172,215
172,215
0
8,227
8,227
0
0
2,355
1,018
14,434
161,902
161,902
0
8,227
8,227
0
0
1,092
355
14,720
11,090
4,618
16,912'
11,090
4,718
16,971'
11,090
4,718
17,019
11,090
4,718
16,948'
11,090
4,718
16,960'
187,325'
546
189,490'
547
193,463
556
190,138'
544
4,174
535
1,444
1,528
268
1,469
2,294
340
1,483
2,773
144
1,463
Oct. 16
Oct. 23
Oct. 30
Nov. 6
Nov. 13
Nov. 20
Nov. 27
199,092
201,217
191,810
192,701
172,377
172,377
0
8,227
8,227
0
0
2,446
940
15,102
172,282
172,282
0
8,227
8,227
0
0
758
4,653
15,297
163,594
163,594
0
8,227
8,227
0
0
4,682
1,527
13,780
167,889
167,889
0
8,227
8,227
0
0
924
1,848
13,813
11,090
4,718
16,971'
11,090
4,718
16,983
11,090
4,718
16,995
11,090
4,718
17,007
11,090
4,718
17,019
189,015'
544
188,886'
547
190,645
555
192,022
544
191,441
554
193,131
554
2,590
180
1,461
1,186
221
1,468
3,955
210
1,469
3,310
229
1,481
2,652
236
1,481
2,331
250
1,484
SUPPLYING RESERVE FUNDS
23 Reserve Bank credit
24
25
26
27
28
29
30
31
32
33
U.S. government securities 1
Bought outright
Held under repurchase a g r e e m e n t s . . . .
Federal agency obligations
Bought outright
Held under repurchase a g r e e m e n t s . . . .
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 Banks 2
497
372
598
674
372
377
529
479
534
440
6,530
6,339
6,475
6,107
6,063
5,964
6,193
6,0%
6,018
6,004
25,718
25,650
22,347
25,311
30,793
20,426
28,327
29,849
21,708
21,332
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
1.12 RESERVES AND BORROWINGS
Stock
and Bank Credit
A5
Depository Institutions
Millions of dollars
Monthly averages 8
Reserve classification
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks 1
Total vault cash 2
Vault cash used to satisfy reserve requirements 3 .
Surplus vault cash 4
Total reserves 5
Required reserves
Excess reserve balances at Reserve Banks 6
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks 7
1982
1983
1984
Dec.
Dec.
Dec.
Apr.
May
June
July
Aug.
Sept.
Oct.
24,939
20,392
17,049
3,343
41,853
41,353
500
697
33
187
21,138
20,755
17,908
2,847
38,894
38,333
561
774
96
2
21,738
22,316
18,958
3,358
40,696
39,843
853
3,186
113
2,604
23,217
21,567
18,435
3,132
41,652
40,914
738
1,323
135
868
22,385
21,898
18,666
3,231
41,051
40,247
804
1,334
165
534
23,367
22,180
18,985
3,196
42,352
41,447
905
1,205
151
665
23,503
22,530
19,300
3,230
42,803
41,948
855
1,107
167
507
23,415
22,839
19,548
3,291
42,963
42,135
827
1,073
221
570
24,972
22,465
19,475
2,990
44,447
43,782
666
1,289
203
656
25,431
22,724
20,038
2,686
44,469
44,716
753
1,187
172
629
1985
Biweekly averages of daily figures for weeks ending
1985
11
12
13
14
15
16
17
18
19
20
1
Reserve balances with Reserve Banks
Total vault cash 2
Vault cash used to satisfy reserve requirements 3 .
Surplus vault cash 4
Total reserves 5
Required reserves
Excess reserve balances at Reserve Banks 6
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks 7
Aug. 14
Aug. 28
Sept. 11
Sept. 25
Oct. 9
Oct. 23
Nov. 6 r
Nov. 20
Dec.4
Dec. 18?
23,468
22,829
19,550
3,280
43,018
42,280
738
990
224
509
23,102''
23,052
19,689''
3,363'
42,791'
41,841'
95C
1,088
225
610
43,509
21,887
18,880
3,008
43,509
42,838
672
1,392
196
669
44,800
22,705
19,766
2,939
44,800
44,133
667
1,171
212
656
25,553
23,067
19,971
3,097
45,523
44,876
647
1,395
195
627
25,232
22,831
20,294
2,538
45,525
44,733
793
1,118
169
649
25,643
22,151
19,667
2,484
45,310
44,508
802
1,075
151
598
26,242
22,528
20,117
2,412
46,359
45,466
893
1,178
104
522
27,002
22,543
20,032
2,511
47,034
45,987
1,048
2,928
84
503
27,564
22,464
20,160
2,304
47,724
46,927
797
841
53
524
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
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.
1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS
Large Member Banks'
Averages of daily figures, in millions of dollars
1985 week ending Monday
By maturity and source
Oct. 14
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
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
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.
Oct. 21
Oct. 28
Nov. 4r
Nov. IK
Nov. 18
Nov. 25
Dec. 2
Dec. 9
65,966
61,501
58,757
67,993
70,092
69,997
66,797
70,752
74,961
28,238
9,926
25,641
28,620
9,753
26,098
28,543
9,967
26,104
28,652
10,392
26,550
32,264
9,768
25,581
30,383
10,095
27,453
33,679
9,867
30,288
31,771
9,965
27,657
34,070
10,306
29,700
9,582
8,822
8,490
8,953
9,588
9,333
9,778
9,869
9,095
7,629
9,833
7,348
7,114
9,468
7,314
7,073
9,565
7,506
7,075
9,602
7,498
8,093
9,477
7,750
7,476
8,733
8,446
6,911
8,093
8,175
8,053
8,759
12,628
7,325
7,786
7,994
30,925
9,316
29,495
9,080
27,025
7,992
32,516
8,782
32,175
8,383
34,330
8,979
32,778
8,234
35,834
8,829
32,729
9,955
A6
1.14
DomesticNonfinancialStatistics • February 1986
FEDERAL RESERVE B A N K INTEREST RATES
Percent per annum
Current and previous levels
Extended credit 2
Short-term adjustment credit
and seasonal credit 1
Federal Reserve
Bank
First 60 days
of borrowing
Next 90 days
of borrowing
Rate on
12/26/85
Effective
date
Previous
rate
Rate on
12/26/85
Previous
rate
Rate on
12/26/85
Previous
rate
M
5/20/85
5/20/85
5/24/85
5/21/85
5/20/85
5/20/85
8
M
8
S'A
9
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City . . . .
Dallas
San F r a n c i s c o . . .
IVI
5/20/85
5/21/85
5/20/85
5/20/85
5/20/85
5/21/85
8
7V2
8
SV2
Range of rates in recent years
Effective date
In effect Dec. 31, 1973
1974— Apr. 25
30
Dec. 9
16
1975— Jan.
After 150 days
6
10
24
5
7
Mar. 10
14
May 16
23
Feb.
1976— Jan.
19
23
Nov. 22
26
1977— Aug. 30
31
Sept. 2
Oct. 26
1978— Jan.
9
20
May 11
12
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
V/2
71/2-8
7'A
8
73/4-8
73/4
73/4
73/4
71/4-73/4
71/4-73/4
73/4
71/4
71/4
63/4
71/4
6 3 /4-7'/4
63/4
6'/4-6 3 /4
61/4
6-61/4
6
51/2-6
51/5
514-51/!
51/4
5'/4-53/4
51/4-53/4
53/4
6
6-6'/2
6'A
61/2-7
7
63/4
61/4
61/4
6
6
Effective date
1978- July
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
7-71/4
71/4
73/4
8
8-8'/2
8W
8 >/2-9</2
9>/2
July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
10
lO-lO1/^
lO'/i
10>/2-ll
11
11-12
12
Feb. 15
19
May 29
30
June 13
16
July 28
29
Sept. 26
Nov. 17
Dec. 5
8
5
12-13
13
12-13
12
11-12
11
10-11
10
13
13
13
12
11
11
10
10
12
12-13
13
13-14
12
13
13
14
71/4
7>/4
73/4
8
8>/2
81/2
91/2
9>/2
10
10'/2
10'/>
11
11
12
12
5 '/>
5>/4
5!/4
51/4
53/4
53/4
6
6>/2
61/2
7
7
Previous
rate
10
9 VI
5/20/85
5/20/85
5/24/85
5/21/85
5/20/85
5/20/85
5/20/85
5/21/85
5/20/85
5/20/85
5/20/85
5/21/85
10
3
3
10
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
1. A temporary simplified seasonal program was established on Mar. 8, 1985,
and the interest rate was set at 8Vi percent at that time. On May 20 this rate was
lowered to 8 percent.
2. 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.
3. Rates for short-term adjustment credit. For description and earlier data see
the following publications of the Board of Governors: Banking and Monetary
9
Rate on
12/26/85
Effective date
for current rates
Effective date
1981— May
Nov.
Dec.
8
2
6
4
Range (or
level)—
All F.R.
Banks
14
13-14
13
12
F.R.
Bank
of
N.Y.
14
13
13
12
1982— July 20
23
Aug. 2
3
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17
im-12
uvi
11-llVi
11
10'/2
10-10'/!
10
9>/2-10
9VI
9-9V2
9
81/2-9
8V2-9
1984— Apr.
9
13
Nov. 21
26
Dec. 24
81/2-9
9
81/2-9
m
8
9
9
81/2
m
8
1985— May 20
24
7!/>-8
71/2
71/!
m
71/2
71/2
In effect Dec. 26, 1985
8V2
\\Vi
ll'/2
11
11
10^
10
10
9Vi
91h
9
9
9
m
m
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
A7
1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS'
Percent of deposits
Type of deposit, and
deposit interval
Member bank requirements
before implementation of the
Monetary Control Act
Percent
Net
Effective date
demand2
7
9l/2
$10 million-$100 million
$100 milliotv-$400 million
Over $400 million
Time and savings2,3
Savings
Time 4
$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
16'/4
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
3
3/16/67
IP/4
12%
3
m
1
3/16/67
1/8/76
10/30/75
6
2 l /l
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
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.
Type of deposit, and
deposit interval 5
Depository institution requirements
after implementation of the
Monetary Control Act 6
Percent
Effective date
Net transaction accounts7,8
$0—$31.7 million
Over $31.7 million
3
12
12/31/85
12/31/85
Nonpersonal time deposits9
By original maturity
Less than Vh years
1 Vi years or more
3
0
10/6/83
10/6/83
Eurocurrency
All types
3
11/13/80
liabilities
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. 1, 1985, the amount of the exemption is $2.4 million.
Effective with the reserve computation period beginning Dec. 31, 1985, the
amount of the exemption is $2.7 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 1, 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;
effective Dec. 30, 1982, to $26.3 million; effective Dec. 29, 1983, to $28.9 million;
effective Jan. 1, 1985, to $29.8 million; and effective Dec. 31, 1985, to $31.7
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 1986
1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions'
Percent per annum
Type of deposit
Commercial banks
Savings and loan associations and
mutual savings banks (thrift institutions) 1
In effect Dec. 31, 1985
In effect Dec. 31, 1985
Percent
1
2
3
4
Savings
Negotiable order of withdrawal accounts
Negotiable order of withdrawal accounts of $1,000 or more2
Money market deposit account 2
Time accounts
5 7-31 days of less than Sl.OOO4
6 7-31 days of $1,000 or more 2
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.
2. Effective Dec. 1, 1983, IRA/Keogh (HR10) Plan accounts are not subject to
minimum deposit requirements. Effective Jan. 1, 1985, the minimum denomination requirement was lowered from $2,500 to $1,000.
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. Effective Jan. 1, 1985,
5<A
5'/4
(3)
5Vi
Effective date
Percent
1/1/84
12/31/80
1/5/83
12/14/82
5VI
1/1/84
1/5/83
10/1/83
5 V2
51/4
(3)
Effective date
7/1/79
12/31/80
1/5/83
12/14/82
9/1/82
1/5/83
10/1/83
the minimum denomination and average balance maintenance requirements was
lowered to $1,000. No minimum maturity 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 $1,000, 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. Effective Jan. 1, 1985, the minimum denomination requirement was lowered
from $2,500 to $1,000. Deposits of less than $1,000 issued to governmental units
continue to be subject to an interest rate ceiling of 8 percent.
Policy
Instruments
A9
1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1985
Type of transaction
1982
1983
1984
May
Apr.
Aug.
July
June
Oct.
Sept.
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
17,067
8,369
0
3,000
18,888
3,420
0
2,400
20,036
8,557
0
7,700
6,026
0
0
0
274
417
0
800
2,099
0
0
0
0
0
0
200
3,056
0
0
0
1,171''
0
35C
0
0
265
0
0
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
312
0
17,295
-14,164
0
484
0
18,887
-16,553
87
1,126
0
16,354
-20,840
0
245
0
1,129
-1,463
0
0
0
2,443
-2,945
0
0
0
1,312
0
0
0
0
1,238
-1,778
0
0
0
4,895
-3,275
0
0
(K
1,028
-1,806^
0
0
0
529
-1,942
0
10
11
12
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
1,797
0
-14,524
11,804
1,8%
0
-15,533
11,641
1,638
0
-13,709
16,039
846
0
-1,114
1,463
0
0
-2,101
1,940
0
0
-1,312
0
0
0
-1,153
1,778
6
0
-3,760
1,825
0
0
-1,028
1,457
0
0
-520
942
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
388
0
-2,172
2,128
890
0
-2,450
2,950
536
300
-2,371
2,750
108
0
-16
0
0
0
42
600
0
0
0
0
0
0
-85
0
6
0
-1,136
800
0
0
0
0
0
0
-10
0
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
307
0
-601
234
383
0
-904
1,962
441
0
-275
2,052
0
0
0
0
0
0
-384
405
0
0
0
0
0
0
0
0
0
0
0
650
0
0
0
0
0
0
0
0
22
23
24
All maturities
Gross purchases
Gross sales
Redemptions
19,870
8,369
3,000
22,540
3,420
2,487
23,476
7,553
7,700
7,321
0
0
274
417
800
2,099
0
0
0
0
200
3,068
0
0
1,17K
0
0
265
0
25
26
Matched transactions
Gross sales
Gross purchases
543,804
543,173
578,591
576,908
808,986
810,432
65,845
64,001
78,870
77,597
81,016
83,782
60,980
59,165
64,263
64,209
73,925
72,347
100,929
100,197
27
28
Repurchase agreements
Gross purchases
Gross sales
130,774
130,286
105,971
108,291
139,441
139,019
11,540
4,088
21,716
29,168
2,801
2,801
10,486
10,486
1,928
1,928
14,029
14,029
0
0
8,358
12,631
8,908
12,931
-9,668
4,865
-2,015
-408
-997
0
0
189
0
0
292
0
0
256
0
0
0
0
8
0
0
60
0
0
46
0
0
30
0
0
0^
0
0
0
18,957
18,638
8,833
9,213
1,205
817
983
452
1,336
1,867
120
120
2,439
2,439
354
354
130
-672
132
531
-540
-60
-46
-30
36 Repurchase agreements, net
1,285
-1,062
-418
0
0
0
0
37 Total net change in System Open Market
Account
9,773
10,897
6,116
13,462
-10,208
4,805
-2,061
29 Net change in U.S. government securities
3,014
C
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
n.a.
3,522
3,522
0
0
<y
0
0
0
0
2,984
-408
-997
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
DomesticNonfinancialStatistics • February 1986
1.18 FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements
Millions of dollars
End of month
Wednesday
1985
Account
Oct. 30
Nov. 6
Nov. 13
Nov. 20
Sept.
Nov. 27
Oct.
Consolidated condition statement
ASSETS
11,090
4,718
529
11,090
4,718
548
11,090
4,718
569
11,090
4,718
528
11,090
4,718
508
11,090
4,618
518
11,090
4,718
524
11,090
4,718
504
1,092
0
2,446
0
758
0
4,682
0
924
0
2,520
0
886
0
1,602
0
0
0
0
0
0
0
0
0
8,227
0
8,227
0
8,227
0
8,227
0
8,227
0
8,227
0
8,227
0
71,431
66,072
24,399
161.902
0
161,902
81,556
66,422
24,399
172,377
0
172,377
81,461
66,422
24,399
172,282
0
172,282
73,388
65,807
24,399
163,594
0
163,594
77,383
66,107
24,399
167,889
0
167,889
79,231
66,072
24,399
169,702
0
169,702
78,234
66,072
24,399
168,705
0
168,705
78,347
66,292
24,529
169,168
0
169,168
171,221
183,050
181,267
176,503
177,040
180,449
177,818
178,997
6,117
594
7,390
593
14,027
597
8,124
599
8,702
600
4,297
594
5,843
595
5,915
600
6,392
7,734
6,573
7,936
6,627
8,073
6,637
6,544
6,644
6,569
4,963
8,073
6,530
7,606
6,834
7,389
208,395
221,898
226,968
214,743
215,871
214,602
214,724
216,047
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4
To depository institutions
5
Other
Acceptances—Bought outright
6
Held under repurchase agreements
Federal agency obligations
7
Bought outright
8
Held under repurchase agreements
U.S. government securities
Bought outright
9
Bills
10
Notes
11
Bonds
12
Total bought outright 1
13 Held under repurchase agreements
14 Total U.S. government securities
8,227
0
15 Total loans and securities
16 Cash items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies 2
19 All other 3
20 Total assets
LIABILITIES
172,991
174,765
176,150
175,517
177,176
171,476
173,590
177,504
22
23
24
25
21,894
1,186
221
377
29,796
3,955
210
529
31,330
3,310
229
479
23,189
2,652
236
534
22,816
2,331
250
440
27,162
4,174
535
497
27,119
1,528
268
372
23,830
2,294
340
598
26 Total deposits
23,678
34,490
35,348
26,611
25,837
32,368
29,287
27,062
5,762
2,131
6,450
2,247
9,374
2,240
6,597
2,168
6,854
2,141
4,228
2,272
5,508
2,335
5,006
2,306
204,562
217,952
223,112
210,893
212,008
210,344
210,720
211,878
1,762
1,626
445
1,766
1,626
554
1,768
1,626
462
1,772
1,626
452
1,773
1,626
464
1,753
1,626
879
1,762
1,626
616
1,773
1,626
770
33 Total liabilities and capital accounts
208,395
221,898
226,968
214,743
215,871
214,602
214,724
216,047
34 MEMO: Marketable U.S. government securities held in
custody for foreign and international account
123,327
126,296
123,982
124,617
126,551
126,128
123,099
127,566
21 Federal Reserve notes
Deposits
To depository institutions
U.S. Treasury—General account
Foreign—Official accounts
Other
27 Deferred availability cash items
28 Other liabilities and accrued dividends 4
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 ..
206,879
33,888
172,991
207,182
32,417
174,765
207,864
31,714
176,150
208,523
33,006
175,517
208,797
31,621
177,176
205,459
33,983
171,476
206,884
33,294
173,590
208,830
31,326
177,504
11,090
4,718
0
157,183
11,090
4,718
0
158,957
11,090
4,718
0
160,342
11,090
4,718
0
159,709
11,090
4,718
0
161,368
11,090
4,618
0
155,768
11,090
4,718
0
157,782
11,090
4,718
0
161,696
42 Total collateral
172,991
174,765
176,150
175,517
177,176
171,476
173,590
177,504
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
1.19 FEDERAL RESERVE BANKS
Reserve
Banks
Maturity Distribution of Loan and Security Holdings
Millions of dollars
End of month
Wednesday
1985
Type and maturity groupings
Nov. 27
Nov. 13
Oct. 30
Sept. 30
1 Loans—Total
2
Within 15 days
3
16 days to 90 days
4
91 days to 1 year
1,092
1,046
46
2,446
2,379
67
758
717
41
4,682
4,648
34
40
2,520
2,452
68
886
829
57
0
0
0
0
0
0
0
5 Acceptances—Total
6
Within 15 days
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
9 U.S. government securities—Total
10
Within 15 days'
11
16 days to 90 days
12
91 days to 1 year
13
Over 1 year to 5 years
14
Over 5 years to 10 years
15
Over 10 years
161,902
5,848
30,880
53,990
34,865
14,856
21,463
172,377
6,828
38,047
55,556
35,627
14,856
21,463
172,282
3,693
41,107
55,536
35,627
14,856
21,463
163,594
6,206
31,615
55,631
34,455
14,256
21,431
167,889
8,332
35,441
53,674
34,755
14,256
21,431
169,702
5,823
38,796
53,899
34,855
14,866
21,463
168,705
1,133
37,043
58,933
35,277
14,856
21,463
16 Federal agency obligations—Total.
17
Within 15 days'
18
16 days to 90 days
19
91 days to 1 year
20
Over 1 year to 5 years
21
Over 5 years to 10 years
22
Over 10 years
8,227
84
668
1,757
4,141
1,178
399
8,227
8,227
66
719
1,848
4,016
1,179
399
8,227
175
610
1,848
4,016
1,179
399
8,227
273
504
8,227
162
529
1,762
4,109
1,266
399
8,227
84
668
1,757
4,141
1,178
399
0
753
1,756
4,141
1,178
399
1,820
4,070
1,161
399
1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements.
All
A12
1.20
DomesticNonfinancialStatistics • February 1986
A G G R E G A T E R E S E R V E S OF D E P O S I T O R Y I N S T I T U T I O N S A N D M O N E T A R Y B A S E
Billions of dollars, averages of daily figures
Item
1981
Dec.
1982
Dec.
1983
Dec.
1985
1984
Dec.
Apr.
2
3
4
5
Nonborrowed reserves
Nonborrowed reserves plus extended credit 3
Required reserves
Monetary base 4
June
July
Aug.
Sept.
Oct.
Nov.
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS'
1 Total reserves2
May
32.10
34.28
36.14
39.08
40.71
41.32
42.18
42.61
43.19
31.46
31.61
31.78
158.10
33.65
33.83
33.78
170.14
35.36
35.37
35.58
185.49
35.90
38.50
38.23
199.03
39.39
40.26
39.97
203.56
39.99
40.52
40.52
205.35
40.97
41.64
41.27
207.66
41.50
42.01
41.75
208.83
42.12
42.69
42.37
211.15
43.51
43.65
42.22
42.46
42.87
43.09
42.84
42.90'
212.38' 213.46'
44.37
42.63
43.16
43.44
215.25
Not seasonally adjusted
6 Total reserves2
7
8
9
10
Nonborrowed reserves
Nonborrowed reserves plus extended credit 3
Required reserves
Monetary base 4
32.82
35.01
36.86
40.13
41.25
40.64
41.96
42.41
42.60
32.18
32.33
32.50
160.94
34.37
34.56
34.51
173.17
36.09
36.09
36.30
188.76
36.94
39.55
39.28
202.02
39.93
40.80
40.52
203.42
39.31
39.84
39.84
204.54
40.75
41.42
41.05
207.99
41.30
41.81
41.55
210.26
41.52
42.09
41.77
211.23
41.92
41.85
38.89
40.70
41.65
41.05
42.35
42.80
42.96
41.29
41.44
41.61
170.47
41.22
41.41
41.35
180.52
38.12
38.12
38.33
192.36
37.51
40.09
39.84
202.59
40.33
40.77
40.91
203.81
39.72
40.45
40.25
204.94
41.15
41.88
41.45
208.39
41.70
42.23
41.95
210.65
41.89
42.50
42.14
211.60
43.22
43.75
41.93
42.56
42.59
43.19
42.56
42.99
211.81' 212.97'
44.62
42.88
43.41
43.69
215.64
NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS5
11 Total reserves2
12
13
14
15
Nonborrowed reserves
Nonborrowed reserves plus extended credit 3
Required reserves
Monetary base 4
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
44.45
45.47
43.16
44.28
43.83
44.90'
43.78
44.72'
213.04' 214.69'
46.37
44.63
45.06
45.45
217.39
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
A13
1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Billions of dollars, averages of daily figures
1985
1981
Dec.
1982
Dec.
1983
Dec.
1984
Dec.
Aug.'
Sept.'
Oct.'
Nov.
Seasonally adjusted
441.8
1,794.4
2,235.8
2,596.4
4,255.8
480.8
1,954.9
2,446.8
2,854.7
4,649.8
528.0
2,188.8
2,701.8
3,168.8
5,177.2
558.5
2,371.7
2,995.0
3,541.3'
5,927.1
605.9
2,514.1
3.142.5
3,730.1
6,420.2
611.9
2,528.9
3,169.0
3,761.2
6,479.3
611.1
2,533.4
3,179.3
n.a.
6,541.9
617.8
2,547.4
3,192.7
n.a.
n.a.
124.0
4.4
235.2
78.2
134.3
4.3
238.6
103.5
148.4
4.9
243.5
131.3
158.7
5.2
248.6
146.0
167.1
5.9
264.1
168.9
167.9
5.9
266.8
171.3
168.8
5.9
264.0
172.4
169.9
5.9
266.3
175.7
1,352.6
441.4
1,474.0
492.0
1,660.8
512.9
1,813.3
623.3
1,908.1
628.4
1,917.0
640.1
1,922.3
645.9
1,929.6
645.3
Savings deposits 9
Commercial Banks
Thrift institutions
158.6
185.8
163.5
194.4
133.4
173.6
122.6
166.0
124.2
176.1
124.6
177.1
125.1
179.3
125.3
180.4
14
15
Small denomination time deposits 9
Commerical Banks
Thrift institutions
347.8
475.8
379.8
471.7
350.7
433.8
387.0
498.6
384.1
494.3
382.8
491.6
381.8
489.9
381.7
489.9
16
17
Money market mutual funds
General purpose and broker/dealer
Institution-only
150.6
38.0
185.2
51.1
138.2
43.2
167.5
62.7
176.8
63.6
176.7
62.3
176.9
63.3
176.4
64.5
18
19
Large denomination time deposits 10
Commercial Banks 11
Thrift institutions
247.5
54.6
262.0
66.2
228.9
101.9
264.4
151.8
267.6
153.7
272.9
155.7
277.2
156.1
280.0
157.6
20
21
Debt components
Federal debt
Non-federal debt
825.9
3,429.9
979.2
3,670.6
1,173.0
4,004.3
1,367.4'
4,559.7'
1,496.1
4,924.1
1,505.6
4,973.7
1,516.6
5,025.3
n.a.
n.a.
1
2
3
4
5
Ml
M2
M3
L
Debt
6
7
8
9
Ml components
Currency 2
Travelers checks 3
Demand deposits 4
Other checkable deposits 5
10
11
Nontransactions components
In M26
In M3 only7
12
13
Not seasonally adjusted
452.2
1,798.7
2,243.4
2,604.7
4,251.1
491.8
1,959.6
2,454.4
2,859.5
4,644.2
539.7
2,194.0
2,709.2
3,172.7
5,171.6
570.4
2,376.7
3,002.2'
3,542.9'
5,921.2'
601.5
2,507.4
3,137.4
3,722.2
6,400.8
608.6
2,517.6
3,157.2
3,749.2
6,463.9
611.0
2,530.1
3,173.8
n.a.
6,528.5
620.0
2,545.3
3,193.3
n.a.
n.a.
126.2
4.1
243.4
78.5
136.5
4.0
247.2
104.1
150.5
4.6
252.2
132.4
160.9
4.9
257.4
147.2
167.7
6.5
260.9
166.4
167.6
6.2
265.5
169.3
168.5
5.9
265.4
171.2
170.7
5.6
268.4
175.3
1,346.5
444.7
1,467.8
494.8
1,654.2
515.2
1,806.3
625.4
1,905.8
630.0
1,909.0
639.7
1,919.1
643.7
1,925.3
648.0
Money market deposit accounts
Commercial banks
Thrift institutions
n.a.
.0
26.3
16.9
230.5
148.7
267.1
147.9
317.7
174.3
321.2
175.5
324.3
176.8
329.2
177.3
35
36
Savings deposits 8
Commercial Banks
Thrift institutions
157.5
184.7
162.1
193.2
132.2
172.5
121.4
164.9
124.0
175.5
123.7
176.0
124.5
179.0
124.3
179.6
37
38
Small denomination time deposits 9
Commercial Banks
Thrift institutions
347.7
475.5
380.1
471.7
351.1
434.2
387.6
499.4
385.4
494.0
385.2
492.3
384.9
493.6
384.3
493.4
39
40
Money market mutual funds
General purpose and broker/dealer
Institution-only
150.6
38.0
185.2
51.1
138.2
43.2
167.5
62.7
176.8
63.6
176.7
62.3
176.9
63.3
176.4
64.5
41
42
Large denomination time deposits 10
Commercial Banks 11
Thrift institutions
251.7
54.4
265.2
65.9
230.8
101.4
265.9
151.1
269.4
155.1
274.5
156.3
278.2
157.4
279.9
158.2
43
44
Debt components
Federal debt
Non-federal debt
823.0
3,428.2
976.4
3,667.7
1,170.2
4,001.4
1,364.7
4,556.4'
1,495.8
4,905.0
1,506.9
4,957.0
1,515.5
5,013.0
22
23
24
25
26
Ml
M2
M3
L
Debt
27
28
29
30
Ml components
Currency 2
Travelers checks 3
Demand deposits 4
Other checkable deposits 5
31
32
Nontransactions components
M2*
M3 only 7
33
34
For notes see following page.
n.a.
n.a.
A14
DomesticNonfinancialStatistics • February 1986
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), arid 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
A15
1.22 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.
1985
Bank group, or type of customer
July
June
May
Aug.
Sept.
Oct.
Seasonally adjusted
DEBITS TO
2
Demand deposits
1 All insured banks
2 Major New York City banks
3 Other banks
4 ATS-NOW accounts 3
5 Savings deposits 4
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
128,440.8
57,392.7
71,048.1
1,588.7
633.1
149,252.8
66,394.3
82,858.4
1,771.1
636.4
146,714.9
66,615.5
80,099.4
1,614.3
544.4
157,128.3
69,952.8
87,175.5
1,870.1
584.3
147,455.5
65,645.6
81,809.9
2,008.8
550.7
159,593.3
72,765.4
86,827.9
2,465.3
509.1
162,205.4
76,706.3
85,499.2
2,212.7
562.0
324.2
1,287.6
211.1
14.5
4.5
379.7
1,528.0
240.9
15.6
5.4
434.4
1,843.0
268.6
15.8
5.0
484.6
2,079.6
300.2
16.1
5.4
471.4
2,104.9
286.5
14.4
4.6
506.4
2,131.4
314.2
16.4
4.9
469.6
1,965.4
291.5
17.1
4.6
510.9
2,326.3
308.9
20.6
4.2
513.2
2,422.2
300.6
18.4
4.6
DEPOSIT TURNOVER
6
7
8
9
10
Demand deposits 2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 3
Savings deposits 4
11
12
13
14
15
16
Demand deposits 2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 3
MMDA 5
Savings deposits 4
Not seasonally adjusted
DEBITS TO
91,031.8
38,001.0
53,030.9
1,027.1
720.0
109,517.6
47,707.4
64,310.2
1,397.0
567.4
742.0
128,059.1
57,282.4
70,776.9
1,579.5
848.8
632.9
151,342.3
67,249.3
84,093.0
1,775.5
1,146.7
621.1
148,651.5
67,999.4
80,652.1
1,744.0
1,077.9
549.7
157,898.2
70,496.1
87,402.1
1,807.5
1,183.3
586.0
152,985.1
68,401.8
84,583.3
1,770.5
1.201.2
538.4
148,788.8
68,967.9
79,820.9
2,289.9
1,192.2
490.1
167,639.3
78,010.5
89,628.8
2,157.7
1,293.0
579.9
379.9
1,510.0
240.5
15.5
2.8
5.4
433.5
1,838.6
267.9
15.7
3.5
5.0
505.5
2,205.8
312.7
16.2
3.9
5.2
480.6
2,125.9
290.8
15.5
3.5
4.6
509.5
2,185.9
314.8
15.9
3.5
4.8
499.3
2,189.4
307.4
15.3
3.8
4.5
475.0
2,216.6
282.9
19.4
3.7r
4.1
532.1
2,507.4
315.7
18.1
4.0
4.8
DEPOSIT TURNOVER
Demand deposits 2
17 All insured banks
18 Major New York City banks
19 Other banks
20 ATS-NOW accounts 3
71 MMDA 5
22 Savings deposits 4
325.0
1,295.7
211.5
14.4
4.5
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
DomesticNonfinancialStatistics • February 1986
1.23 LOANS AND SECURITIES
All Commercial Banks'
Billions of dollars; averages of Wednesday figures
1984
Dec/
1985
Jan/
Feb/
Mar/
Apr/
May'
June'
July'
Aug.'
Sept/
Oct.
Nov.
Seasonally adjusted
1 Total loans and securities2
2 U.S. government securities
i Other securities
4 Total loans and leases 2
5 Commercial and industrial
6
Bankers acceptances held 3 ..
7
Other commercial and
industrial
8
U.S. addressees 4
9
Non-U.S. addressees 4
10 Real estate
11 Individual
12 Security
13 Nonbank financial
institutions
14 Agricultural
15 State and political
subdivisions
16 Foreign banks
17 Foreign official institutions . . .
18 Lease financing receivables...
19 All other loans
1,716.8
1,726.3
1,744.8
1,761.6
1,768.8
1,788.5
1,802.7
1,819.0
1,828.8
1,841.3
1,844.4
1,869.6
260.3
140.0
1,316.5
469.0
5.4
260.3
142.6
1,323.4
469.2
5.1
266.0
141.1
1,337.7
474.1
6.2
267.1
138.9
1,355.6
481.2
6.4
261.4
140.2
1,367.1
481.9
5.4
266.3
142.2
1,380.0
484.3
4.9
267.1
144.5
1,391.0
484.3
4.7
271.6
145.4
1,402.1
484.1
5.1
271.4
148.2
1,409.2
485.7
5.0
273.1
151.3
1,416.9
487.2
4.7
270.0
154.8
1,419.7
487.0
4.7
275.0
160.7
1,433.9
490.6
4.9
463.6
453.6
10.0
376.2
251.5
31.4
464.1
454.0
10.2
378.6
255.3
31.9
468.0
457.4
10.6
382.8
258.5
31.6
474.9
464.2
10.7
386.7
262.9
32.8
476.5
465.8
10.7
390.8
266.5
35.1
479.3
469.2
10.1
394.8
269.9
37.5
479.6
470.1
9.5
398.7
272.7
40.0
479.0
469.6
9.4
403.7
276.3
40.3
480.7
471.1
9.6
407.1
278.5
36.7
482.5
473.3
9.2
409.9
280.3
38.1
482.3
473.7
8.6
414.5
281.3
37.9
485.7
477.3
8.4
419.2
283.8
37.5
31.6
40.3
31.4
39.9
30.9
39.6
30.6
39.5
31.1
39.4
31.5
39.4
31.2
39.4
31.6
39.6
32.3
39.6
32.5
40.1
32.4
40.3
33.2
40.5
44.3
11.5
7.4
15.5
37.5
47.0
11.5
7.0
15.6
36.0
46.7
11.5
7.1
15.8
39.0
47.0
11.2
7.0
16.1
40.6
47.2
10.9
7.0
16.4
40.8
47.5
10.6
7.0
16.7
40.8
47.5
10.3
6.8
17.0
43.1
47.8
10.4
6.7
17.3
44.2
48.8
10.2
6.5
17.5
46.4
48.8
9.9
6.7
17.6
45.8
49.3
9.6
6.9
17.7
42.8
50.0
9.6
7.0
17.9
44.8
Not seasonally adjusted
20 Total loans and securities2
1,727.8
1,734.3
1,742.9
1,757.7
1,769.0
1,784.6
1,803.6
1,812.5
1,822.1
1,839.8
1,846.1
1,870.8
21 U.S. government securities
22 Other securities
li Total loans and leases 2
24 Commercial and industrial....
25
Bankers acceptances held 3 ..
2b
Other commercial and
industrial
27
U.S. addressees 4
28
Non-U.S. addressees 4 ....
29 Real estate
30
Individual
31
Security
32 Nonbank financial
institutions
33 Agricultural
34
State and political
subdivisions
35 Foreign banks
36 Foreign official institutions . . .
3/
Lease financing receivables...
38 All other loans
257.0
141.6
1,329.2
472.1
5.8
260.2
143.4
1,330.6
471.1
5.2
266.9
141.3
1,334.6
473.7
6.1
269.2
139.1
1,349.4
480.8
6.3
266.9
139.9
1,362.3
482.1
5.5
268.4
142.8
1,373.4
482.8
4.9
270.8
144.2
1,388.6
482.8
4.8
271.4
144.0
1,397.2
483.2
5.0
269.8
147.7
1,404.6
483.5
4.9
270.7
150.7
1,418.4
487.2
4.6
266.9
154.2
1,424.9
488.0
4.6
270.6
160.8
1,439.4
491.0
4.8
466.3
455.3
11.0
376.8
254.6
35.2
465.9
455.6
10.3
379.3
257.8
33.0
467.6
457.5
10.1
382.4
258.2
30.8
474.5
464.3
10.2
385.6
260.7
32.2
476.6
466.7
9.9
389.5
264.3
35.0
477.9
468.3
9.6
393.8
267.7
36.0
477.9
468.6
9.3
398.1
270.7
39.9
478.2
468.7
9.5
403.1
274.5
38.3
478.6
469.0
9.6
407.3
278.3
35.8
482.6
473.1
9.4
411.2
281.5
36.7
483.4
474.3
9.1
415.9
283.4
37.7
486.2
477.1
9.1
420.3
285.8
39.5
31.7
40.0
31.5
39.3
30.7
38.8
30.6
38.6
31.3
38.8
31.3
39.3
31.2
39.9
31.7
40.4
32.4
40.5
32.6
40.9
32.4
40.9
33.1
40.6
44.3
12.2
7.4
15.5
39.5
47.0
11.7
7.0
15.8
37.2
46.7
11.5
7.1
16.0
38.8
47.0
11.0
7.0
16.3
39.8
47.2
10.5
7.0
16.4
40.2
47.5
10.3
7.0
16.7
41.0
47.5
10.0
6.8
16.9
44.7
47.8
10.3
6.7
17.2
44.1
48.8
9.9
6.5
17.4
44.2
48.8
10.1
6.7
17.5
45.3
49.3
9.9
6.9
17.6
43.0
50.0
9.8
7.0
17.7
44.6
1. Data are prorated averages of Wednesday estimates for domestically chartered insured banks, based on weekly sample reports and quarterly universe
reports. For foreign-related institutions, data are averages of month-end estimates
based on weekly reports from large U.S. agencies and branches and quarterly
reports from all U.S. agencies and branches, New York investment companies
majority owned by foreign banks, and Edge Act corporations owned by domestically chartered and foreign banks.
2. Excludes loans to commercial banks in the United States.
3. Includes nonfinancial commercial paper held.
4. United States includes the 50 states and the District of Columbia.
NOTE. 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 BANKS1
Monthly averages, billions of dollars
1985
1984
Source
Dec.
Total nondeposit funds
Seasonally adjusted 2
Not seasonally adjusted
Federal funds, RPs, and other
borrowings from nonbanks 3
3
Seasonally adjusted
4
Not seasonally adjusted
5 Net balances due to foreign-related
institutions, not seasonally
adjusted
1
2
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
108.5
111.1
102.5
104.8
113.9
117.4
116.9
119.4
105.2
108.4
112.0
117.2
112.6
114.9
108.5'
107.4
112.9
114.8
116.1
116.2'
118.8
120.4
120.7
126.7
140.5
143.1
138.8
141.1
146.8
150.2
147.2
149.7
138.8
141.9
142.0
147.2
146.7
149.0
146.9
145.8
144.1
146.0
146.3
146.4
145.4
147.0
149.0
155.0
-32.0
-36.3
-32.8
-30.3
-33.5
-30.0
-34.1
-38.4
-31.2
-30.2
-26.6
-28.3
-31.4
69.0
37.6
-34.8
71.4
36.6
-31.6
70.5
38.9
-29.5
71.4
41.9
-32.4
74.8'
42.4'
-29.6'
74.5'
44^
-32.5
76.4'
44.(K
-38.3
79.1'
40.8'
-32.8
75.8'
43.(K
-30.7
74^
44.C
-28.7
74.1'
45.4'
-30.3
74.0
43.8
-.6
52.0
51.4
-1.5
53.1
51.6
-1.2
54.1
52.8
-.8
53.4
52.7
-1.1
51.8
50.7
-.5
52.4
52.0
-1.7'
53.8
52.1
-.1'
54.9
54.9
1.6
55.3
56.8'
.5
56.1
56.6
2.1
55.5
57.6
2.0
56.0
58.0
81.1
81.1
82.3
82.2
90.1
91.1
92.0
92.0
85.4
86.0
85.5
88.3
86.5
86.3
87.1
83.4
87.4
86.8
90.8
88.4
88.4
87.5
87.9
91.3
16.1
12.5
14.7
18.5
13.0
15.8
11.8
12.8
14.6
15.4
22.6
20.9
17.4
14.9
24.9
23.1
16.7
13.4
15.3
16.8
3.8
5.4
13.2
7.7
325.8
327.3
324.8
325.6
325.4
324.9
329.9
330.3
332.6
330.1
331.2
329.1
326.8
326.4
323.2
322.4'
325.1
326.9
330.3
331.9
334.4
335.4
336.6
336.5
MEMO
6 Domestically chartered banks' net
positions with own foreign
branches, not seasonally
adjusted 4
7 Gross due from balances
8
Gross due to balances
9 Foreign-related institutions' net
positions with directly related
institutions, not seasonally
adjusted 5
10 Gross due from balances
11 Gross due to balances
Security RP borrowings
12 Seasonally adjusted®
13 Not seasonally adjusted
U.S. Treasury demand balances 7
14 Seasonally adjusted
15 Not seasonally adjusted
Time deposits, $100,000 or more 8
16 Seasonally adjusted
17 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. 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.
4. Averages of daily figures for member and nonmember banks.
5. Averages of daily data.
6. Based on daily average data reported by 122 large banks.
7. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
8. Averages of Wednesday figures.
NOTE. These data also appear in the Board's G. 10 (411) release. For address see
inside front cover.
A18
DomesticNonfinancialStatistics • February 1986
1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Last-Wednesday-of-Month Series
Billions of dollars
1985
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
1,856.1
381.2
245.1
136.1
24.2
1,450.8
125.4
1,325.4
470.2
380.9
258.2
216.1
1,875.9
382.2
248.1
134.1
27.6
1,466.0
128.8
1,337.3
477.0
383.3
259.0
218.0
1,883.4
383.7
251.1
132.5
23.7
1,476.0
126.0
1,350.0
483.2
386.9
261.4
218.5
1,899.2
383.9
250.4
133.5
23.5
1,491.8
130.9
1,360.9
482.1
390.7
265.2
222.9
1,908.6
390.3
254.4
135.9
23.5
1,494.9
124.0
1,370.8
483.4
395.8
268.5
223.0
1,927.3
392.1
255.3
136.8
23.1
1,512.1
123.1
1,388.9
484.3
400.0
272.1
232.6
1,948.5
392.3
256.1
136.2
22.3
1,534.0
133.0
1,401.0
485.9
405.6
276.1
233.4
1,952.1
393.7
254.2
139.6
24.2
1,534.1
128.6
1,405.5
484.6
409.3
280.0
231.5
1,969.9
397.0
254.4
142.6
26.4
1,546.5
129.1
1,417.5
489.2
412.8
282.1
233.4
1,979.1
396.3
249.3
147.0
25.0
1,557.8
131.7
1,426.1
488.8
418.3
285.1
233.9
2,029.8
404.4
251.6
152.7
32.0
1,593.5
149.4
1,444.1
492.8
421.8
286.7
242.9
188.0
20.9
21.9
66.9
189.4
19.6
21.8
68.8
183.6
19.8
21.3
63.9
187.6
22.9
21.3
64.2
202.3
20.7
23.3
76.5
190.4
21.6
22.2
68.4
198.0
21.0
22.0
70.5
188.4
24.5
22.7
62.5
188.2
24.9
22.1
61.4
190.1
19.6
22.6
67.9
207.7
20.1
21.4
81.7
30.9
47.4
32.3
46.8
31.7
46.9
30.2
49.0
35.2
46.6
31.3
46.8
33.5
51.0
30.6
48.2
30.8
49.1
31.6
48.4
35.5
49.0
Nov.
ALL COMMERCIAL BANKING
INSTITUTIONS 1
1 Loans and securities
Investment securities
2
3
U.S. government securities
Other
4
5 Trading account assets
6 Total loans
Interbank loans
7
8
Loans excluding interbank
9
Commercial and industrial
10
Real estate
11
Individual
12
All other
13 Total cash assets
14 Reserves with Federal Reserve Banks
15 Cash in vault
16 Cash items in process of collection . . .
17 Demand balances at U.S. depository
institutions
18 Other cash assets
191.8
195.4
188.5
188.6
183.4
189.4
194.5
180.8
185.8
178.1
181.8
20 Total assets/total liabilities and capital . . .
19 Other assets
2,235.9
2,260.7
2,255.5
2,275.4
2,294.2
2,307.1
2,341.1
2,321.3
2,344.0
2,347.3
2,419.3
21
22
23
24
25
26
27
1,605.9
457.1
400.4
748.4
307.0
173.8
149.1
1,619.5
459.5
407.2
752.7
309.4
182.2
149.6
1,627.5
457.9
410.4
759.2
301.3
177.0
149.7
1,638.5
465.6
410.1
762.9
310.3
175.6
150.9
1,661.5
480.3
418.7
762.5
305.4
176.0
151.3
1,659.8
474.0
425.6
760.1
315.8
179.7
151.8
1,685.0
492.3
434.3
758.4
321.6
181.1
153.4
1,676.9
475.4
436.4'
765.0
308.9
182.0
153.4
1,683.C
474.9
438.3
769.8
323.2
183.6
154.1
1,705.6
491.4
443.8
770.4
309.0
177.9
154.8
1,743.4
521.6
448.4
773.4
345.9
174.9
155.2
262.1
269.6
268.6
266.7
269.3
271.0
270.0
268.3
271.5
265.1
271.5
143.3
140.2
138.8
140.7
144.4
144.3
144.6
149.7
151.9
156.2
164.8
1,761.8
373.9
240.3
133.5
24.2
1,363.8
100.7
1,263.1
426.1
375.8
258.0
203.2
1,777.1
374.9
243.4
131.5
27.6
1,374.6
101.1
1,273.5
431.9
378.0
258.7
204.8
1,784.8
376.9
246.9
130.1
23.7
1,384.1
100.1
1,284.0
436.0
381.8
261.2
205.0
1,799.6
377.1
246.4
130.7
23.5
1,399.0
103.3
1,295.7
436.5
385.4
265.0
208.7
1,812.7
383.8
250.7
133.1
23.5
1,405.5
100.6
1,304.9
436.6
390.4
268.3
209.6
1,829.2
385.1
251.4
133.8
23.1
1,420.9
100.6
1,320.3
436.0
394.4
271.8
218.1
1,847.9
385.1
252.4
132.7
22.3
1,440.5
110.0
1,330.5
437.6
399.9
275.9
217.2
1,850.8
386.5
250.4
136.0
24.2
1,440.1
104.7
1,335.5
435.7
403.7
279.8
216.3
1,863.6
389.1
250.5
138.6
26.4
1,448.1
103.8
1,344.2
437.9
407.0
281.8
217.5
1,872.3
388.1
245.0
143.1
25.0
1,459.2
106.8
1,352.4
437.4
412.7
284.8
217.5
1,917.6
396.6
248.0
148.7
32.0
1,489.0
121.0
1,368.0
440.0
416.3
286.5
225.2
175.9
20.2
21.9
66.7
178.0
18.7
21.8
68.5
172.7
19.2
21.3
63.7
176.0
22.3
21.3
63.9
191.2
19.6
23.2
76.2
179.2
20.9
22.2
68.2
185.3
20.4
22.0
70.3
176.4
23.8
22.6
62.2
176.1
24.4
22.0
61.1
178.0
18.6
22.6
67.7
195.6
19.5
21.4
81.5
29.5
37.6
31.0
38.0
30.4
38.1
28.8
39.6
33.8
38.3
29.8
38.1
32.2
40.4
29.0
38.8
29.4
39.2
30.2
38.9
33.8
39.3
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
MEMO
28 U.S. government securities (including
trading account)
29 Other securities (including trading
account)
DOMESTICALLY CHARTERED
COMMERCIAL BANKS 2
30 Loans and securities
31 Investment securities
32
U.S. government securities
33
Other
34 Trading account assets
35 Total loans
36
Interbank loans
37
Loans excluding interbank
38
Commercial and industrial
39
Real estate
40
Individual
41
All other
42 Total cash assets
43
Reserves with Federal Reserve Banks
44
Cash in vault
45
Cash items in process of collection . . .
46
Demand balances at U.S. depository
institutions
47 Other cash assets
137.7
139.0
137.2
137.5
131.5
137.7
144.9
132.6
133.3
132.0
137.1
49 Total assets/total liabilities and capital . . .
48 Other assets
2,075.4
2,094.2
2,0*4.7
2,113.1
2,135.4
2,146.2
2,178.1
2,159.8
2,173.0
2,182.3
2,250.3
50
51
52
53
54
55
56
1,563.3
450.8
399.3
713.2
247.1
118.5
146.5
1,575.4
453.1
406.1
716.2
247.6
124.3
146.9
1,582.4
451.7
409.2
721.6
240.6
124.8
147.0
1,593.8
459.3
408.9
725.6
248.5
122.6
148.3
1,618.4
473.8
417.5
727.1
246.1
122.4
148.6
1,617.2
467.7
424.3
725.2
253.8
126.1
149.1
1,642.3
486.0
432.9'
723.3
258.4
126.8
150.7
1,631.9
468.9
435.1
727.9
249.6
127.4
150.8'
1,636.6
468.3
436.9'
731.4
259.0
125.9
151.5
1,659.5
484.9
442.4
732.2
248.0
122.7
152.2'
1,697.4
515.1
446.9
735.5
280.2
120.1
152.5
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
1. Commercial banking institutions include insured domestically chartered
commercial banks, branches and agencies of foreign banks, Edge Act and
Agreement corporations, and New York State foreign investment corporations.
2. Insured domestically chartered commercial banks include all member banks
and insured nonmember banks.
NOTE. Figures are partly estimated. They include all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries. Loan and securities data for domestically chartered commercial banks are estimates for the last
Wednesday of the month based on a sample of weekly reporting banks and
quarter-end condition report data. Data for other banking institutions are estimates made for the last Wednesday of the month based on a weekly reporting
sample of foreign-related institutions and quarter-end condition reports.
Weekly Reporting
Commercial
Banks
A19
1.26 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
1 Cash and balances due from depository institutions
2 Total loans, leases and securities, net
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
42
43
44
U.S. Treasury and government agency
Trading account
Investment account, by maturity
One year or less
Over one through five years
Over five years
Other securities
Trading account
Investment account
States and political subdivisions, by maturity
One year or less
Over one year
Other bonds, corporate stocks, and securities
Other trading account assets
Federal funds sold1
To commercial banks
To nonbank brokers and dealers in securities
To others
Other loans and leases, gross 2
Other loans, gross 2
Commercial and industrial 2
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
Real estate loans 2
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 2
Other loans and leases, net 2
All other assets
Total assets
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
Demand deposits
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Depository institutions in United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Transaction balances other than demand deposits
Nontransaction balances
Individuals, partnerships and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Foreign governments, official institutions and banks..
Liabilities for borrowed money
Borrowings from Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money 3
Other liabilities and subordinated note and debentures
Total liabilities
Residual (total assets minus total liabilities)4
67
68
69
70
71
72
73
Total loans and leases (gross) and investments adjusted 5
Total loans and leases (gross) adjusted 2 ' 5
Time deposits in amounts of $100,000 or more
Loans sold outright to affiliates—total 6
Commercial and industrial
Other
Nontransaction savings deposits (including MMDAs)...
MEMO
Nov. 6
Nov. 13
Nov. 20
93,038'
858,864
84,159
17,044
67,115
18,092
34,774
14,248
53,423
4,744
48,679
43,416
6,756
36,660
5,263
3,902
89,335'
863,196
82,863
15,781
67,082
18,235
34,551
14,296
54,216
4,930
49,286
43,917
6,805
37,112
5,369
4,306
95,981
881,249
88,455
19,459
68,9%
19,909
34.691
14,3%
54,725
5,239
49,486
43,9%
6,728
37,268
5,490
5,076
109,379
873,648
87,845
18,724
69,122
19,622
35,375
14,125
54,978
5,245
49,733
44,335
6,599
37,736
5,398
4,660
92,150
891,824
90,409
21,339
69,070
20,541
34,683
13,846
55,693
5,063
50,630
45,224
6,636
38,587
5,407
4,440
55,948
35,868
14,177
5,903
685,198
670,853
252,024'
2,425
249,598'
244,699'
4,899'
53,941
35,139
13,102
5,700
681,751
667,394
252,466'
2,238
250,228'
245,352'
4,876'
55,082
35,674
13,126
6,282
685,017
670,616
252,574
2,229
250,345
245,522
4,823
62,913
42,615
13,271
7,027
688,600
674,138
254,988
2,571
252,417
247,545
4,872
57,185
36,389
13,712
7,084
687,601
673,156
253,526
2,345
251,181
246,309
4,872
64,826
42,558
13,064
9,205
695,024
680,517
254,276
175,956'
127,616'
41,412'
10,842
5,863'
24,707'
17,492'
7,085'
31,103
3,434
14,729'
14,345
5,136
13,125
666,938
128,540
176,203'
127,928'
39,604'
10,528
5,031'
24,045'
15,369
7,048'
31,225
3,287
14,264'
14,357
5,135
13,177
663,439
125,272'
176,658
128,513
39,740
10,494
4,974
24,272
17,052
7,002
31,326
3,231
14,519
14,401
5,137
13,153
666,728
124,315
176,968
128,602
40,702
10,008
5,606
25,088
16,814
6,922
31,553
3,351
14,238
14,462
5,112
13,408
670,080
127,878
177,622
128,780
40,945
10,571
5,230
25,143
15,822
6,862
31,450
3,470
14,680
14,445
5,098
13,524
668,979
125,822
177,809
129,174
41,105
10,744
4,968
25,393
21,418
6,817
31,575
3,307
15,035
14,507
5,090
13,478
676,455
126,913
Oct. 9
Oct. 16
100,834'
869,525''
84,692
15,257
69,434
19,522
35,802
14,111
53,418'
5,381'
48,037
42,826
6,688
36,138
5,212
3,986
89,082'
872,118'
86,268
18,441
67,828
18,586
35,194
14,048
52,700
4,569
48,131
42,897
6,718
36,179
5,234
3,597
108,742
864,442
85,027
17,316
67,711
18,434
35,275
14,002
52,969
4,618
48,351
43,026
6,746
36,280
5,325
3,560
57,161
36,930
13,433
6,798
688,472'
674,143'
254,319'
2,439'
251,880'
246,889'
4,991'
62,353
41,275
14,485
6,592
685,380'
671,039'
252,907'
2,248
250,659'
245,731
4,927'
174,966'
127,376'
41,597'
10,569
6,097'
24,931'
17,566
7,129'
31,083
3,382
16,724'
14,329'
5,108'
13,097
670,267'
130,8^
175,353'
127,503'
40,927'
11,188'
5,197'
24,543'
18,64V
7,13(K
31,092
3,267
14,21P
14,340
5,112
13,068
667,20c
126,704
2,181
252,0%
247,246
4,850
1,087,905' 1,101,724 1,077,174' 1,076,846 1,105,108 1,108,848 1,110,886
201,285
208,576
198,717
195,740
189,003'
209,726' 189,321' 214,748
151,075
158,297
144,215' 148,655' 149.384
158,684' 146,281' 162,371
5,254
4,854
4,739
5,132
5,028
4,686
5,342
6,016
3,678
2,511'
1,558
2,441
2,189
1,334
1,787
1,414
22,436
24,072
21,944
27,619
23,739
22,126
29,616
25,713
5,593
5,618
5,274
5,667
5,153
5,558
5,689
6,816
767
915
854
891
1,060
1.056
885
794
10,924
9,186
10,734
8,851'
9,636
11,658
9,057
10,289'
39,042
39,270
40,128'
40,158
40,547
41,135
40,054'
39,937
478,268' 478.385
479,542
478,537
478,579' 479,148' 477,509' 477,361
440,924' 441,654
443,536
441,376
441,459' 441,698' 440,467' 440,064
25,263
25,123
25,394
23,879
24,893
24,599
25,014
25,181
478
492
482
502
492
479
476
467
9,153
9,207
9,181
9,054
9,136
9.057
9,189
9,049
2,450
2,474
2,393
2,570
2,641
2,5%
2,362
2,423
198,533' 224,382
225,512
216,570
204,713' 202,885'
206,971' 213,858'
285
1,551
3,262
4,124
250
1,928
265
320
215'
1,249
199^
622
3,218
2,740
338
7,322
198,033'
200,085'
210,397'
220,766
213,102
219,714
204,109'
199,329'
88,153'
91,314'
87,791'
86,698
86,604
84.692
87,273'
88,727'
1,023,941' 1,010,246' 1,024,296' 999,833' 999,736 1,027,310 1,030,834 1,033,195
77,692
78,014
77,798
77,110
77,341
77,427
77,658
77,233'
L.IOI.N*
840,23(K
698,134'
158,245
2,185
1,298
887
188,828
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.
4. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.
Oct. 30
Oct. 2
837,836'
695,269'
158,811'
2,072
1,249
823
189,368'
835,992
694,435
157,168'
2,077
1,261
816
189,219'
831,509
690,025
157,467
2,045
1,248
797
189,050
835,317
693,931
158,262'
1,946
1,170
777
189,431'
847,146
698,890
157,315
1,968
1,230
738
190,380
845,309
697,826
157,022
2,014
1,264
750
190,803
857,091
706,549
157,350
1,977
1,213
764
191,471
5. Exclusive of loans and federal funds transactions with domestic commercial
banks.
6. 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.
NOTE. These data also appear in the Board's H.4.2 (504) release. For address,
see inside front cover.
A20
DomesticNonfinancialStatistics • February 1986
1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures
1985
Account
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
4
10
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
Loans and leases
17 Federal funds sold3
18 To commercial banks
19 To nonbank brokers and dealers in securities
20 To others
21 Other loans and leases, gross
22 Other loans, gross
23
Commercial and industrial
24
Bankers acceptances and commercial paper
25
All other
26
U.S. addressees
27
Non-U.S. addressees
28
Real estate loans
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
41
Loan and lease reserve
42 Other loans and leases, net
43 All other assets 4
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 the 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
62 Treasury tax-and-loan notes
63 All other liabilities for borrowed money 5
64 Other liabilities and subordinated note and debentures
65 Total liabilities
66 Residual (total assets minus total liabilities)6
Oct. 2
Oct. 9
24,556
183,833
22,981
184,844
23,944
181,186
23,387
180,057
23,052
181,200
10,121
1,854
6,612
1,655
8,773
1,341
5,794
1,639
8,725
1,340
5,737
1,647
8,719
1,342
5,662
1,716
10,792
9,616
1,717
7,899
1,176
10,807
9,635
1,731
7,904
1,172
10,835
9,655
1,729
7,926
1,180
22,822
11,010
6,899
4,913
145,372
142,632
60,602
676
59,926
59,244
682
27,980
17,778
12,794
2,686
2,872
7,236
9,362
349
8,168
986
4,612
2,741
1,412
3,862
140,098
69,951
26,625
14,119
7,730
4,776
143,922
141,166
59,702
546
59,156
58,470
686
27,994
17,732
12,278
2,858
2,232
7,188
10,510
345
8,157
874
3,572
2,756
1,411
3,873
138,638
68,775
278,340
276,600
23,775
11,806
7,826
4,144
143,168
140,404
59,947
639
59,308
58,629
680
28,237
17,762
12,544
2,714
2,607
7,223
8,918
341
8,141
1,042
3,471
2,764
1,437
3,880
137,850
67,924
273,054
52,957
34,898
1,256
159
6,575
5,412
628
4,029
45,600
30,445
874
154
5,324
3,904
716
4,182
51,4%
34,101
960
229
7,188
4,349
701
3,968
46,935
30,695
813
500
5,456
4,110
743
4,618
49,620
32,50c
706
487'
5,272
4,256
579
5,820
4,281
86,417
78,168
4,979
35
2,060
1,174
74,400
4,308
86,711
78,310
4,965
34
2,226
1,175
80,952
2,275
6'
78,672'
34,350
4,265
86,458
78,131
4,962
33
2,172
1,160
71,854
4,151
87,094
78,677
5,094
36
2,124
1,163
70,482
1
71,852
34,341
4,201
86,591
78,088
5,072
37
2,186
1,208
68,827
600
178
68,050
38,506
Oct. 16
Oct. 23
Oct. 30
Nov. 13
Nov. 20
Nov. 27
25,534
186,342
24,998
183,784
22,401
193,723
22,043
191,685
8,753
1,339
5,634
1,780
10,225
2,301
6,110
1,813
10,993
2,276
6,870
1,848
11,319
2,556
6,874
1,889
11,644
2,557
7,228
1,858
10,956
9,716
1,690
8,026
1,240
11,095
9,853
1,698
8,155
1,242
11,381
9,933
1,690
8,243
1,447
11,602
10,118
1,749
8,369
1,484
11,839
10,338
1,778
8,560
1,500
12,245
10,736
1,778
8,957
1,510
24,759
13,358
7,169
4,232
140,989
138,218
59,525
605
58,920
58,231
689
28,325
17,804
11,746
2,475
2,141
7,131
7,860
359
8,165
912
3,520
2,771
1,439
3,928
135,622
66,220
23,502
12,138
6,710
4,654
143,218
140,437
59,665
685
58,979
58,284
695
28,368
17,878
11,445
2,338
2,031
7,076
9,729
353
8,168
876
3,955
2,781
1,444
3,924
137,849
66,192
26,430
14,252
7,120
5,057
143,738
140,938
60,384
811
59,573
58,878
695
28,691
17,940
12,334
2,393
2,568
7,374
8,342
342
8,358
965
3,581
2,800
1,436
3,995
138,307
71,049
23,617
11,222
7,242
5,153
143,028
140,242
59,700
644
59,056
58,361
695
28,699
17,934
12,404
2,753
2,246
7,404
8,260
324
8,236
1,064
3,621
2,786
1,425
4,032
137,571
71,371
25,772
13,074
7,260
5,438
147,466
144,668
59,236
630
58,606
57,880
726
28,833
18,081
12,741
3,106
2,088
7,547
11,687
328
8,390
882
4,490
2,798
1,429
4,013
142,024
73,707
269,664
270,444
282,926
280,154
28,387
13,699
7,148
7,540
147,623
144,831
59,405
620
58,786
58,085
701
28,699
18,041
12,410
2,754
2,132
7,523
12,868
325
8,210
930
3,942
2,792
1,427
4,018
142,178
72,443
288,567
287,436
49,437
31,136
820
378
5,300
4,287
890
6,626
50,064
32,868
831
285
6,355
4,296
881
4,547
50,326
31,838
1,051
712
6,032
4,382
669
5,641
51,642
34,342
761
550
6,811
4,243
1,042
3,892
4,343
87,036
78,705
4,926
37
2,124
1,243
83,836
1,375
650
81,811
33,523
258,175
4,312
86,797
78,408
4,961
37
2,109
1,282
79,429
4,380
87,995
79,884
5,064
41
1,985
1,020
84,541
980
78,449
34,704
4,274
87,996
79,727
4,972
43
1,981
1,272
87,242
3,143
120
83,979
33,931
255,306
263,768
2,314
82,227
34,271
262,829
24,750
24,848
24,798
24,607
175,128
153,522
33,479
175,267
152,671
33,114
182,714
159,556
33,758
180,948
157,058
33,458
1,699
72,702
35,816
253,871
1
70,481
34,681
251,921
24,469
24,678
248,414
24,640
245,061
24,604
246,028
24,416
175,411
154,498
32,945
173,151
153,570
33,682'
171,984
152,424
33,456'
169,591
149,915
33,648
172,092
152,244
33,764
Nov. 6
MEMO
67 Total loans and leases (gross) and investments adjusted 1 ' 7
68 Total loans and leases (gross) adjusted 7
69 Time deposits in amounts of $100,000 or more
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.
6. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
7. Exclusive of loans and federal funds transactions with domestic commercial
banks.
NOTE. These data also appear in the Board's H.4.2 (504) release. For address,
see inside front cover.
Weekly Reporting
Commercial
Banks
A21
1.30 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
1985
Account
Oct. 2
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 purchased 2
From commercial banks in the
United States
From others
Other liabilities for borrowed m o n e y . . . .
To commercial banks in the
United States
To others
Other liabilities to nonrelated parties
Net due to related institutions
Total liabilities
42
43
Total loans (gross) and securities adjusted 3
Total loans (gross) adjusted 3
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
Oct. 9
Oct. 16
Oct. 23
Oct. 3 0
Nov. 6
Nov. 13
Nov. 2 0
Nov. 27
6,517
50,836
3,562
2,379
4,334
3,887
447
40,561
23,756
7,132
49,192
3,634
2,440
4,284
3,834
450
38,834
22,476
7,981
49,174
3,712
2,437
4,047
3,611
436
38,977
22,879
8,428
47,874
3,651
2,308
3,564
2,994
569
38,351
22,812
6,967
49,900
3,704
2,330
4,556
3,935
620
39,309
23,727
6,697
50,542
3,943
2,364
3,665
3,021
644
40,570
23,970
6,720
49,258
3,608
2,384
3,504
2,911
593
39,762
23,923
6,965
52,453
3,149
2,444
5,576
4,918
657
41,284
24,344
6,868
51,648
3,304
2,484
4,556
3,886
669
41,305
24,586
1,696
22,060
20,788
1,272
12,024
9,057
1,407
1,560
544
1,682
2,554
18,935
8,792
85,079
1,650
20,826
19,578
1,248
11,934
9,318
1,096
1,520
549
1,371
2,503
18,574
11,008
85,907
1,720
21,159
19,952
1,206
11,761
9,220
1,128
1,412
552
1,332
2,454
19,014
9,152
85,320
1,606
21,205
19,955
1,250
11,356
8,831
1,119
1,405
558
1,258
2,368
19,208
8,267
83,778
1,693
22,034
20,780
1,254
11,302
8,822
1,076
1,404
574
1,331
2,374
18,754
8,289
83,910
1,753
22,216
20,973
1,244
12,186
9,660
1,070
1,457
607
1,506
2,301
18,430
9,037
84,706
1,804
22,118
20,905
1,214
11,799
9,363
991
1,445
598
1,134
2,308
18,501
9,487
83,967
1,918
22,425
21,219
1,206
12,190
9,489
1,086
1,615
612
1,861
2,278
18,471
8,511
86,401
1,898
22,688
21,434
1,254
11,974
9,515
981
1,478
601
1,840
2,303
18,577
10,326
87,419
26,604
262
2,146
26,700
235
1,973
26,716
228
2,417
26,661
149
2,382
26,351
179
1,924
26,363
161
1,757
26,353
181
1,971
25,848
190
1,774
26,475
196
2,058
1,080
1,067
24,196
1,036
937
24,492
1,578
839
24,071
1,543
839
24,130
1,128
796
24,249
1,041
716
24,445
1,021
950
24,200
1,006
768
23,884
1,109
949
24,221
19,265
4,930
19,452
5,040
19,023
5,048
19,149
4,981
19,207
5,042
19,032
5,413
18,735
5,465
18,522
5,362
18,945
5,276
31,610
13,878
32,562
15,041
30,964
14,425
29,087
12,586
29,432
12,336
32,858
16,011
32,138
14,796
32,096
14,953
34,579
14,352
10,771
3,107
17,732
11,789
3,252
17,522
10,962
3,463
16,538
9,141
3,445
16,501
9,054
3,282
17,096
12,673
3,338
16,847
11,077
3,719
17,342
12,192
2,761
17,143
11,458
2,894
20,227
16,575
1,156
21,026
5,839
85,079
16,454
1,067
20,757
5,887
85,907
15,377
1,162
20,624
7,017
85,320
15,402
1,099
20,690
7,340
83,778
16,014
1,081
20,749
7,378
83,910
15,821
1,026
20,656
4,828
84,706
16,283
1,060
20,585
4,891
83,967
16,127
1,016
20,625
7,832
86,401
18,969
1,258
20,602
5,763
87,419
37,891
31,950
36,039
29,965
36,342
30,193
36,048
30,089
37,143
31,108
37,861
31,554
36,985
30,993
38,046
32,452
38,246
32,459
MEMO
• 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.
A22
DomesticNonfinancialStatistics • February 1986
1.31 GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations'
Billions of dollars, estimated daily-average balances, not seasonally adjusted
Commercial banks
Type of holder
1984
1980
1981
1982
1983
Dec.
Dec.
Dec.
Dec.
June
1 All holders—Individuals, partnerships, and
corporations
2
3
4
5
6
Financial business
Nonfinancial business
Consumer
Foreign
Other
Sept.
1985
Dec.
Mar. 3
June
Sept.
315.5
288.9
291.8
293.5
286.3
288.8
302.7
286.5
298.6
298.9
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
32.8
161.1
78.5
3.3
17.8
30.8
156.7
78.7
3.5
16.7
30.4
158.9
79.9
3.3
16.3
31.7
166.3
81.5
3.6
19.7
28.1
158.2
77.9
3.5
18.8
28.9
164.7
81.8
3.7
19.5
28.8
167.7
80.5
3.5
18.5
Weekly reporting banks
1984
1980
1981
1982
Dec.
Dec.
Dec.
June
7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
Sept.
Dec.
Mar.
3
June
Sept.
147.4
137.5
144.2
146.2
145.3
145.3
157.1
147.8
151.4'
153.7
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
24.2
79.8
29.7
3.1
9.3
23.6
79.7
29.9
3.2
8.9
23.7
79.2
29.8
3.2
9.3
25.3
87.1
30.5
3.4
10.9
22.6
82.8
29.1
3.3
10.0
22.9
84.0
29.9
3.5
11.0
23.3
85.9
30.6
3.3
10.6
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. 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.
1985
1983
Dec. 2
3. Beginning March 1985, financial business deposits and, by implication, total
gross demand deposits have been redefined to exclude demand deposits due to
thrift institutions. Historical data have not been revised. The estimated volume of
such deposits for December 1984 is $5.0 billion at all insured commercial banks
and $3.0 billion at weekly reporting banks.
Financial Markets
A23
1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1985
1980
Dec.
instrument
1981
Dec.
1982
Dec. 1
1983
Dec.
1984
Dec. 2
May
June
July
Aug.
Sept.
Oct.
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
2
3
4
5
6
Financial companies 3
Dealer-placed paper4
Total
Bank-related (not seasonally
adjusted)
Directly placed paper5
Total
Bank-related (not seasonally
adjusted)
Nonfinancial companies 6
124,374
165,829
166,436
188,312
239,117
258,943
254,627
262,769
273,327
276,559'
280,930
19,599
30,333
34,605
44,622
56,917
61,282
61,602
67,419
67,816
69,904
68,378
3,561
6,045
2,516
2,441
2,035
2,295
2,051
2,083
2,136
2,333
67,854
81,660
84,393
96,918
110,474
119,975
118,432
118,722
128,216
131,801'
131,064
22,382
36,921
26,914
53,836
32,034
47,437
35,566
46,772
42,105
71,726
43,126
77,686
43,454
74,593
41,228
76,628
42,926
77,295
43,224
74,854
42,570
81,488
2,077
Bankers dollar acceptances (not seasonally adjusted) 7
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
54,744
69,226
79,543
78,309
75,470
69,689
68,375
68,497
68,822
68,728
67,592
10,564
8,963
1,601
10,857
9,743
1,115
10,910
9,471
1,439
9,355
8,125
1,230
10,255
9,065
1,191
9,265
7,578
1,687
9,470
7,869
1,601
9,299
8,012
1,287
9,208
8,010
1,198
10,679
9,166
1,513
9,866
8,189
1,677
776
1,791
41,614
195
1,442
56,731
1,480
949
66,204
418
729
68,225
0
671
67,595
0
575
59,849
0
511
58,394
0
652
58,546
0
789
58,825
0
793
57,256
0
850
56,876
11,776
12,712
30,257
14,765
15,400
39,060
17,683
16,328
45,531
15,649
16,880
45,781
16,975
15,859
42,635
16,670
14,214
38,804
16,286
13,340
38,748
16,444
12,969
39,084
17,207
12,850
37,149
16,677
12,810
37,708
16,145
12,635
n.a.
1. 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.
2. 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.
3. Institutions engaged primarily in activities such as, but not limited to,
commercial, savings, and mortgage banking; sales, personal, and mortgage
financing; factoring, finance leasing, and other business lending; insurance
underwriting; and other investment activities.
4. Includes all financial company paper sold by dealers in the open market.
5. As reported by financial companies that place their paper directly with
investors.
6. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
7. 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.
1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per annum
Average
rate
Effective Date
11.00
10.50
11.00
11.50
12.00
12.50
13.00
12.75
1984—Oct. 17
29
Nov. 9
28
Dec. 20
12.50
12.00
11.75
11.25
10.75
1985—Jan. 15
May 20
June 18
10.50
10.00
9.50
1983—Jan
Feb
Mar
Apr
June
July
Aug
Sept
Oct
Nov
Dec
1984—Jan..
Feb.
Mar.
Apr.
NOTE. These data also appear in the Board's H.15 (519) release. For address,
see inside front cover.
11.16
10.98
10.50
10.50
10.50
10.50
10.50
10.89
11.00
11.00
11.00
11.00
11.00
11.00
11.21
11.93
Month
1984—June.
July .
Aug.
Sept.
Oct..
Nov.
Dec.
1985—Jan. .
Feb..
Mar.
Apr..
May.
June.
July.
Aug.
Sept.
Oct..
Nov.
A24
DomesticNonfinancialStatistics • February 1986
1.35 INTEREST RATES Money and Capital Markets
Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.
1985
Instrument
1982
1983
1985, week ending
1984
Aug.
Sept.
Oct.
Nov.
Nov. 1
Nov. 8
Nov. 15 Nov. 22
Nov. 29
MONEY MARKET RATES
1 Federal funds 1 ' 2
2 Discount window borrowing1-2-3
Commercial paper4-5
3
1-month
4 3-month
5 6-month
Finance paper, directly placed 4 ' 5
6
1-month
7 3-month
8 6-month
Bankers acceptances 5 - 6
9
3-month
10 6-month
Certificates of deposit, secondary market 7
11
1-month
12 3-month
13 6-month
14 Eurodollar deposits, 3-month 8
U.S. Treasury bills'
Secondary market 9
3-month
15
16
6-month
17
1-year
Auction average 10
3-month
18
19
6-month
20
1-year
12.26
11.02
9.09
8.50
10.22
8.80
7.90
7.50
7.92
7.50
7.99
7.50
8.05
7.50
7.89
7.50
8.30
7.50
7.95
7.50
8.13
7.50
7.71
7.50
11.83
11.89
11.89
8.87
8.88
8.89
10.05
10.10
10.16
7.73
7.72
7.74
7.83
7.83
7.86
7.81
7.80
7.79
7.84
7.77
7.69
7.77
7.74
7.73
7.87
7.78
7.71
7.88
7.79
7.69
7.79
7.74
7.67
7.82
7.77
7.69
11.64
11.23
11.20
8.80
8.70
8.69
9.97
9.73
9.65
7.70
7.56
7.55
7.84
7.64
7.60
7.79
7.60
7.59
7.81
7.58
7.57
7.75
7.62
7.60
7.88
7.60
7.59
7.85
7.58
7.57
7.78
7.58
7.54
7.73
7.58
7.56
11.89
11.83
8.90
8.91
10.14
10.19
7.68
7.68
7.81
7.84
7.76
7.75
7.70
7.59
7.69
7.65
7.68
7.60
7.70
7.62
7.70
7.57
7.71
7.57
12.04
12.27
12.57
13.12
8.96
9.07
9.27
9.56
10.17
10.37
10.68
10.73
7.77
7.81
7.97
8.02
7.88
7.93
8.09
8.14
7.85
7.88
7.97
8.08
7.82
7.81
7.82
8.02
7.79
7.82
7.85
8.09
7.80
7.79
7.79
8.00
7.85
7.82
7.83
7.99
7.80
7.80
7.81
8.03
7.86
7.86
7.88
8.03
10.61
11.07
11.07
8.61
8.73
8.80
9.52
9.76
9.92
7.13
7.32
7.48
7.10
7.27
7.50
7.16
7.33
7.45
7.24
7.30
7.33
7.20
7.32
7.41
7.25
7.32
7.36
7.29
7.32
7.34
7.23
7.29
7.30
7.18
7.27
7.32
10.69''
11.08''
11.10
8.63'
8.75'
8.86'
9.58'
9.80'
9.91
7.18
7.35
7.60
7.08
7.26
7.36
7.17
7.32
7.42
7.20
7.26
7.33
7.24
7.37
n.a.
7.21
7.30
n.a.
7.21
7.23
n.a.
7.24
7.26
n.a.
7.15
7.26
7.33
12.27
12.80
9.57
10.21
10.89
11.65
8.05
8.94
8.07
8.98
8.01
8.86
7.88
8.58
7.97
8.76
7.88
8.60
10.45
10.80
11.02
11.10
11.34
11.18
11.89
12.24
12.40
12.44
12.48
12.39
9.31
9.81
10.20
10.33
10.73
10.56
9.37
9.81
10.24
10.37
10.80
10.61
9.25
9.69
10.11
10.24
10.67
10.50
8.88
9.28
9.62
9.78
10.24
10.06
9.13
9.55
9.91
10.07
10.52
10.34
8.94
9.30
9.63
9.82
10.27
10.10
7.85
8.52
8.80
8.78
9.21
9.53
9.68
10.14
9.98
7.87
8.51
12.92
13.01
13.06
13.00
12.92
12.76
7.91
8.66
8.95
9.00
9.38
9.74
9.92
10.35
10.18
8.74
9.16
9.52
9.65
10.14
9.93
12.23
10.84
11.99
10.59
10.67
10.56
10.08
10.37
10.21
10.10
9.98
9.96
10.86
12.46
11.66
8.80
10.17
9.51
9.61
10.38
10.10
8.49
9.50
9.08
8.70
9.63
9.27
8.58
9.54
9.08
8.13
9.20
8.54
8.30
9.35
8.76
8.30
9.35
8.68
8.20
9.25
8.60
8.00
9.10
8.37
8.00
9.10
8.51
14.94
13.79
14.41
15.43
16.11
12.78
12.04
12.42
13.10
13.55
13.49
12.71
13.31
13.74
14.19
11.76
11.05
11.47
12.00
12.50
11.75
11.07
11.46
11.99
12.48
11.69
11.02
11.45
11.94
12.36
11.29
10.55
11.07
11.54
11.99
11.56
10.87
11.34
11.78
12.24
11.41
10.67
11.19
11.65
12.12
11.31
10.56
11.10
11.55
12.02
11.20
10.47
10.97
11.46
11.91
11.16
10.43
10.95
11.42
11.85
15.49
12.73
13.81
11.77
11.87
11.82
11.38
11.52
11.42
11.42
11.30
11.25
12.53
5.81
11.02
4.40
11.59
4.64
10.15
4.23
10.26
4.32
10.35
4.28
10.12
4.06
10.32
4.20
10.01
4.14
10.09
4.08
10.13
4.03
9.84
3.98
CAPITAL MARKET RATES
U.S. Treasury notes and bonds"
Constant maturities 12
21
1-year
22
2-year
•>3
24
3-year
25
5-year
26
7-year
27
10-year
28
20-year
29
30-year
Composite 14
30
Over 10 years (long-term)
State and local notes and bonds
Moody's series 15
Aaa
31
32
Baa
33 Bond Buyer series 16
Corporate bonds
Seasoned issues 17
34
All industries
35
Aaa
Aa
36
37
A
38
Baa
39 A-rated, recently-offered utility
bonds 18
MEMO: Dividend/price ratio 19
Preferred stocks
40
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 150—
179 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-Vi-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 one very low yielding "flower" bond.
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 M A R K E T
A23
Selected Statistics
1985
Indicator
1982
1983
1984
Mar.
Apr.
May
June
July
Aug.
Sept.
Nov.
Oct.
Prices and tradingiaverages 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 = 50)
68.93
78.18
60.41
39.75
71.99
119.71
92.63
107.45
89.36
47.00
95.34
160.41
92.46
108.01
85.63
46.44
89.28
160.50
103.92
119.64
98.30
53.91
107.59
179.42
104.66
119.93
96.47
55.51
109.39
180.62
107.00
121.88
99.66
57.32
115.31
184.90
109.52
124.11
105.79
59.61
118.44
188.89
111.64
126.94
111.67
59.68
119.85
192.54
109.09
124.92
109.92
56.99
114.68
188.31
106.62
122.35
104.96
55.93
110.21
184.06
107.57
123.65
103.72
55.84
112.36
186.18
113.93
130.53
108.61
59.07
122.83
197.45
282.62
216.48
207.96
225.62
229.46
228.75
227.48
235.21
232.65
226.27
225.00
236.53
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
64,868
5,283
85,418
8,215
91,084 102,591
6,107
8,677
94,387 106,827 105,849 111,952
7,801
7,171
7,128
7,284
87,468
7,275
97,910 110,569
7,057
7,648
122,263
9,183
Customer financing (end-of-period balances, in millions of dollars)
10 Margin credit at broker-dealers3
13,325
23,000
22,470
23,230
23,900
24,300
25,260
25,220
25,780
25,330
26,350
26,400
Free credit balances at brokers4
11 Margin-account
12 Cash-account
5,735
8,390
6,620
8,430
7,015
10,215
6,780
10,160
6,910
9,230
6,865
9,230
7,300
10,115
7,000
9,700
6,455
9,440
6,225
10,080
6,125'
9,630
6,490
10,340
Margin-account debt at brokers (percentage distribution, end of period)
13 Total
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
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
18.0
16.0
9.0
5.0
6.0
38.0
20.0
18.0
10.0
7.0
7.0
39.0
19.0
18.0
10.0
7.0
7.0
36.0
19.0
19.0
34.0
20.0
19.0
34.0
20.0
19.0
35.0
21.0
18.0
11.0
11.0
11.0
7.0
8.0
8.0
8.0
8.0
8.0
8.0
7.0
37.0
22.0
17.0
10.0
7.0
7.0
35.0
20.0
19.0
11.0
40.0
22.0
16.0
9.0
6.0
7.0
92,250
95,240
5
14
15
16
17
18
19
By equity class (in percent)
Under 40
40-49
50-59
60-69
70-79
80 or more
11.0
7.0
8.0
Special miscellaneous-account balances at brokers (end of period)
6
20 Total balances (millions of dollars)
Distribution by equity status (percent)
21 Net credit status
Debt status, equity of
22 60 percent or more
23
Less than 60 percent
75,840
83,729
82,990
87,120
86,910
89,240
90,930
63.0
59.0
60.0
60.0
60.0
59.0
59.0
59.0
59.0
58.0
57.0
28.0
9.0
29.0
30.0
10.0
30.0
10.0
30.0
10.0
31.0
10.0
32.0
9.0
30.0
31.0
10.0
31.0
32.0
11.0
11.0
35,598
58,329
62.0
29.0
9.0
11.0
11.0
91,400
Margin requirements (percent of market value and effective date) 7
24 Margin stocks
25 Convertible bonds
26 Short sales
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Beginning July 5, 1983, the American Stock Exchange rebased its index
effectively cutting previous readings in half.
3. Beginning July 1983, under the revised Regulation T, margin credit at
broker-dealers includes credit extended against stocks, convertible bonds, stocks
acquired through exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds,
and subscription issues was discontinued in April 1984, 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.
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.
A26
DomesticNonfinancialStatistics • February 1986
1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities
Millions of dollars, end of period
1985
1984
Account
1982
1983
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
FSLIC insured institutions
1
2
3
4
5
Assets
Mortgages
Mortgage-backed securities
Cash and investment securities' .
Other
6 Liabilities and net worth.
7 Savings capital...
8 Borrowed money
9
FHLBB
10 Other
11 Other
12 Net worth 2 .
692,663 819,168 978,514
477,009 521,308 599,021
62,793 90,902 108,219
82,300 109,923 135,640
91,516
974,881
602,180
106,836
129,481
91,211
992,289
608,267
108,755
132,438
94,625
995,430 1,003,225 1,012,312 1,022,425' 1,034,830' 1,041,286' 1,049,017
613,334 617,574 623,275 627,935r 632,621' 637,356' 644,076
111,178
108,174 106,433 102,892 104,664' 108,229' 111,1%'
125,528 129,918 132,109 133,868r 135,349' 130,682' 131,176
98,034 100,595 101,566' 101,922' 102,652' 102,763
96,903
692,663 819,168 978,514
974,881 982,182 992,289
995,430 1,003,225 1,012,312 1,022,425' 1,034,83c 1,041,286' 1,049,017
554,584 671,059 784,724
97,459 98,511 137,123
63,818 57,253 71,719
33,641 41,258 65,404
15,233 16,619 18,746
791,475 792,566 801,293
125,605 129,321 132,665
70,509 71,470 71,674
55,096 57,851 60,991
19,961 21,816 19,290
801,293
132,230
72,785
59,445
22,468
809,083
129,082
74,159
54,923
24,215
817,551
130,269
75,897
54,372
22,055
822,144'
133,683'
77,749
55,934'
23,428'
826,703'
139,154'
80,129
59,025'
25,333'
831,004'
143,699'
81,472'
62,227'
22,432'
833,367
146,874
82,554
64,320
24,308
25,386
32,980
13 MEMO: Mortgage loan
commitments outstanding 3
982,182
603,308
107,779
131,625
93,100
37,921
37,840
38,488
39,041
39,476
40,845
42,436
43,171
43,641'
44,151'
44,469
65,836
64,154
65,323
67,615
68,671
69,683
69,585
68,712'
65,793'
65,865'
64,863
Mutual savings banks 4
14 Assets
15
16
17
18
19
20
21
22
Loans
Mortgage
Other
Securities
U.S. government
Mortgage-backed securities
State and local government
Corporate and other 7
Cash
Other assets
174,197 193,535 203,898
204,859 206,175 210,568
210,469
212,509
212,163
213,824
215,298
215,560
94,091
16,957
97,356 102,895
19,129 24,954
103,393 103,654 104,340
25,747 26,456 27,798
105,102
28,000
105,869
28,530
105,891
29,211
106,441
30,339
107,322
30,195
108,842
29,672
9,743
14,055
2,470
22,106
6,919
7,855
15,360
18,205
2,177
25,375
6,263
9,670
14,917
19,167
2,069
23,8%
4,423
11,593
15,098
19,694
2,092
24,194
4,864
12,488
14,504
19,750
2,097
24,139
4,679
12,288
14,895
19,527
2,094
24,344
5,004
12,246
14,074
19,160
2,093
24,047
4,935
12,770
13,960
19,779
2,086'
23,738
4,544
12,937
13,868
20,101
2,105
23,735
4,821
13,151
13,686
20,368
2,105
23,534
4,916
12,345
14,643
19,215
2,077
23,747
4,954
11,413
14,628
19,459
2,067
23,892
4,140
11,533
23 Liabilities
174,197 193,535 203,898
204,859 206,175 210,568
210,469
212,509
212,163
213,824
215,298
215,560
24 Deposits
25
Regular 8
26
Ordinary savings
27
Time
28
Other
29 Other liabilities
30 General reserve accounts . . .
155,1% 172,665 180,616
152,777 170,135 177,418
46,862 38,554 33,739
%,369 95,129 104,732
3,198
2,419
2,530
8,336 10,154 12,504
9,235 10,368 10,510
181,062 181,849 185,197
177,954 178,791 181,742
33,413 33,413 33,715
104,098 103,536 105,204
3,108
3,058
3,455
12,931 13,387 14,393
10,619 10,670 10,720
184,478
180,804
33,211
104,527
3,689
14,959
10,803
185,802
182,113
33,457
104,843
3,674
15,546
10,913
186,091
182,218
33,526
104,756
3,873
14,348
11,238
186,824
182,881
33,495
104,737
3,943
15,137
11,453
187,207
183,222
33,398
104,448
3,985
15,971
11,704
187,722
183,560
33,252
104,668
4,162
15,546
11,882
n a.
Life insurance companies 8
31 Assets.
39
40
41
42
Securities
Government
United States 6 .
State and local.
Foreigr 7
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
588,163 654,948 722,979
36,499
16,529
50,752
28,636
11,306 12,130
287,126 322,854
231,406 257,986
55,720 64,868
141,989 150,999
20,264 22,234
52,961 54,063
48,571 54,046
63,899
42,204'
8,713
12,982
359,333
295,998
63,335
156,699
25,767
54,505
63,776
731,113 735,332 742,154
748,865
757,523
765,891
772,452
778,293
783,828
63,979 65,867 65,603
41,982 43,916 43,502
8,913
9,000
8,902
13,084 12,951 13,199
368,306 371,009 374,757
302,260 303,452 307,078
66,046 67,557 67,679
156,850 157,253 158,162
25,983 26,186 26,527
54,414 54,489 54,438
61,571 60,528 62,667
66,402
44,200
8,923
13,279
379,247
311,123
68,124
159,393
26,828
54,439
62,556
67,880
45,593
8,998
13,289
384,342
314,021
70,321
160,470
27,215
54,384
63,232
68,636
46,260
9,044
13,332
388,448
317,029
71,419
161,485
27,831
54,320
65,171
68,983
46,514
8,980
13,489
393,386
321,752
71,634
162,690
28,240
54,300
64,853
69,975
47,343
9,201
13,431
397,202
325,647
71,555
163,027
28,450
54,238
65,401
71,049
48,181
9,293
13,575
355,505
285,164
70,341
163,929
28,476
54,225
66,629
n.a.
Credit unions 9
43 Total assets/liabilities and capital
44
Federal
45
State
69,585
45,493
24,092
81, %1
54,482
27,479
93,036
63,205
29,831
94,646
64,505
30,141
96,183
65,989
30,194
98,646
67,799
30,847
101,268
68,903
32,365
104,992
71,342
33,650
106,783
72,021
34,762
107,991
72,932
35,059
111,150
74,869
36,281
113,016
75,567
37,449
114,783
76,415
38,368
46 Loans outstanding
47
Federal
48
State
49 Savings
50
Federal (shares)
51
State (shares and d e p o s i t s ) . . .
43,232
27,948
15,284
62,990
41,352
21,638
50,083
32,930
17,153
74,739
49,889
24,850
62,561
42,337
20,224
84,348
57,539
26,809
62,662
42,220
20,442
86,047
58,820
27,227
62,393
42,283
20,110
86,048
59,914
26,134
62,936
42,804
20,132
88,560
61,758
26,802
64,341
43,414
20,927
91,275
62,867
28,408
65,298
44,042
21,256
95,278
66,680
28,598
66,817
44,707
22,110
%,702
66,243
30,459
67,662
44,%3
22,699
98,026
67,070
30,956
69,171
46,036
23,135
99,834
68,087
31,747
70,765
46,702
24,063
101,318
68,592
32,726
71,811
47,065
24,746
103,677
70,063
33,614
Financial Markets A23
NOTES TO TABLE 1.37
1. Holdings of stock of the Federal Home Loan Banks are in "other assets."
2. Includes net undistributed income accrued by most associations.
3. As of July 1985, data include loans in process.
4. 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.
5. Excludes checking, club, and school accounts.
6. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
7. Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
8. Data for December 1984 through April 1985 have been revised.
9. As of June 1982, data include federally chartered or federally insured, statechartered credit unions serving natural persons. Before that date, data were
estimates of all credit unions.
NOTE. FSLIC-insured institutions: Estimates by the FHLBB for all associations in the United States. Data are based on monthly reports of federally insured
associations. Even when revised, data for current and preceding year are subject
to further revision.
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.
A28
1.38
DomesticNonfinancialStatistics • February 1986
FEDERAL FISCAL A N D FINANCING OPERATIONS
Millions of dollars
Calendar year
Fiscal
year
1983
Type of account or operation
Fiscal
year
1984
Fiscal
year
1985
1983
HI
U.S. budget
1 Receipts 1
2 Outlays 1
3 Surplus, or deficit ( - )
Trust funds
4
5
Federal funds 2 ' 3
Off-budget entities (surplus, or deficit
6 Federal Financing Bank outlays
7 Other 3 ' 4
1984
H2
HI
1985
Sept.
Oct.
Nov.
600,562
795,917
-195,355
23,056
-218,410
666,457
841,800
-175,343
30,565
-205,908
733,996
936,809
-202,813
53,540
-256,353
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
73,808
73,191
617
13,164
-12,547
57,881
85,074
-27,193
3,371
-30,564
51,163
84,763
-33,601
-1,420
-32,181
-10,404
-1,953
-7,277
-2,719
-7,339
-1,779
-5,418
-528
-3,199
-1,206
-2,813
-838
-31
-1,350
86
20
-322
537
-207,711
-185,339
-211,931
-96,094
-104,670
-84,884
-764
-27,087
-33,386
212,425
170,817
197,269
102,538
84,020
80,592
5,975
11,390
45,863
-9,889
5,176
5,636
8,885
10,673
3,989
-9,664
3,222
-16,294
4,358
-3,127
7,418
-6,248
-1,037
13,964
1,733
-8,671
3,806
37,057
16,557
20,500
22,345
3,791
18,553
17,060
4,174
12,886
27,997
19,442
8,764
11,817
3,661
8,157
13,567
4,397
9,170
17,060
4,174
12,886
1,823
1,528
294
10,051
2,294
7,757
(-))
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 Other 5
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.
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," Treasury Bulletin, and the Budget of the U.S. Government, Fiscal
Year 1986.
Federal
Finance
A29
1.39 U.S. BUDGET RECEIPTS AND OUTLAYS
Millions of dollars
Calendar year
Source or type
Fiscal
year
1984
Fiscal
year
1985
HI
H2
HI
H2
Oct.'
Sept.
RECEIPTS
666,457
733,996
306,331
305,122
341,808
341,392
73,808
57,881
295,960
279,350
35
81,346
64,770
330,918
298,941
35
97,685
65,743
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
157,229
145,210
5
19,403
7,387
34,643
22,569
29,730
29,360
74,179
17,286
77,413
16,082
33,522
13,809
31,064
8,921
40,328
10,045
241,902
268,805
110,520
100,832
212,180
238,288
97,339
8,709
25,138
4,580
10,468
25,758
4,759
37,361
11,370
6,010
16,965
18 All types
19
20
21
22
23
24
25
26
27
28
1 All sources
2 Individual income taxes, net
3
Withheld
4
Presidential Election Campaign Fund .
5
Nonwithheld
6
Refunds
Corporation income taxes
7
Gross receipts
8
Refunds
9 Social insurance taxes and contributions.
net
10
Payroll employment taxes and
contributions 1
11
Self-employment taxes and
contributions 2
12
Unemployment insurance
13
Other net receipts 3
14
15
16
17
1
0
13,613
1,539
1,547
1,177
35,190
6,847
12,224
1,275
3,383
2,202
131,372
118,690
21,977
20,431
88,786
114,102
105,624
21,325
18,708
6,427
10,984
2,197
398
8,714
2,290
7,667
14,942
2,329
1,086
10,706
2,360
1,247
275
376
144
1,340
382
35,865
12,079
6,422
18,576
16,904
4,010
2,883
7,751
19,586
5,079
3,050
7,811
18,304
5,576
3,102
8,481
18,961
6,329
3,029
8,812
3,331
936
497
1,473
2,958
1,106
574
1,902
841,800
936,809
396,477
406,849
420,700
446,943
73,191
85,074
National defense
International affairs
General science, space, and technology .
Energy
Natural resources and environment
Agriculture
227,411
13,063
8,310
2,538
12,591
12,203
251,468
15,426
8,700
3,906
13,298
22,780
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
118,286
21,498
1,995
742
21,942
2,387
1,029
384
1,363
3,048
Commerce and housing credit
Transportation
Community and regional development . .
Education, training, employment, social
services
5,213
24,587
7,307
1,817
25,874
7,748
2,164
9,918
3,124
2,648
13,323
4,327
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 4
OUTLAYS
28,352
1,080
5,463
7,129
8,550
4,473
1,423
7,370
8,524
1,128
1,083
978
401
2,524
521
954
2,602
13,246
2,136
2,581
3,125
21,843
9,340
2,132
538
265
1,667
11,440
-2,465
2,572
10,616
3,154
2,663
13,673
4,836
29 Health
30 Social security and medicare
31 Income security
30,432
235,764
112,556
33,560
254,446
128,993
41,206
n.a.
143,001
27,271
n.a.
92,643
15,551
119,420
50,450
15,692
119,613
57,411
2,672
21,170
8,574
32
33
34
35
36
37
25,614
5,660
5,117
6,770
111,058
-31,957
26,376
11,334
2,522
2,434
3,124
42,358
-8,887
13,621
2,628
2,479
3,290
47,674
-7,262
12,849
2,807
2,462
2,943
54,748
-8,036
13,317
2,992
2,552
3,458
61,293
-12,914
942
469
788
291
9,773
-4,495
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Net interest 6
Undistributed offsetting receipts 7
6,188
5,483
6,140
129,148
-32,893
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
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.
A30
DomesticNonfinancialStatistics • February 1986
1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1984
1983
1985
Item
Sep. 30
Mar. 31
Dec. 31
June 30
Sep. 30
Dec. 31
Mar. 31
June 30
Sept. 30
1 Federal debt outstanding
1,381.9
1,415.3
1,468.3
1,517.2
1,576.7
1,667.4
1,715.1
1,779.0
1,827.5
2 Public debt securities
Held by public
3
4
Held by agencies
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
1,309.2
263.1
1,663.0
1,373.4
289.6
1,710.7
1,415.2
295.5
1,774.6
1,460.5
314.2
1,823.1
1,506.6
316.5
4.7
3.6
1.1
4.6
3.5
1.1
4.6
3.5
1.1
4.5
3.4
1.1
4.5
3.4
1.1
4.5
3.4
1.1
4.4
3.3
1.1
4.4
3.3
1.1
4.4
3.3
1.1
5 Agency securities
6
Held by public
7
Held by agencies
1,378.0
1,411.4
1,464.5
1,513.4
1,573.0
1,663.7
1,711.4
1,775.3
n.a.
9 Public debt securities
10 Other debt 1
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
1,662.4
1.3
1,710.1
1.3
1,774.0
1.3
1,822.5
n.a.
11 MEMO: Statutory debt limit
1,389.0
1,490.0
1,490.0
1,520.0
1,573.0
1,823.8
1,823.8
1,823.8
1,823.8
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
NOTE. Data from Treasury Bulletin (U.S. Treasury Department),
Types and Ownership
Billions of dollars, end of period
1984
Type and holder
23
74
25
26
1985
1983
Q4
Q1
Q2
Q3
1,028.7
1,197.1
1,410.7
1,663.0
1,710.7
1,774.6
1,823.1
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
1,660.6
1,247.4
374.4
705.1
167.9
413.2
44.4
9.1
9.1
.0
73.3
286.2
1,695.2
1,271.7
379.5
713.8
178.4
423.6
47.7
9.1
9.1
.0
74.4
292.2
1,759.8
1,310.7
381.9
740.9
187.9
449.1
53.9
8.3
8.3
.0
75.7
311.0
1,821.0
1,360.2
384.2
976.0
776.5
199.5
6.6
77.3
6.6
.0
313.9
460.8
1.3
1.4
1.6
9.8
2.3
15.5
14.8
62.8
Insurance companies
Other companies
State and loca' governments
192.5
121.3
616.4
112.1
3.5
24.0
19.3
87.9
203.3
131.0
694.5
111.4
21.5
29.0
17.9
104.3
209.4
139.3
848.4
131.4
42.6
39.1
24.5
127.8
236.3
151.9
1,022.6
188.8
22.8
56.7
39.7
155.1
289.6
160.9
1,212.5
183.4
25.9
82.3
50.1
n.a.
295.5
161.0
1,254.1
195.0
26.7
84.0
50.9
n.a.
314.2
169.1
1,292.0
196.3
24.8
n.a.
52.3
n.a.
Individuals
Savings bonds
Other securities
Foreign and international 5
Other miscellaneous investors 6
72.5
44.6
129.7
122.8
68.1
42.7
136.6
163.0
68.3
48.2
149.5
217.0
71.5
61.9
166.3
259.8
74.5
69.3
192.9
n.a.
75.4
79.9
186.3
n.a.
76.7
81.9
200.7
n.a.
By type
Interest-bearing debt
Marketable
Bills
Notes
Bonds
Nonmarketable 1
State and local government series
Foreign issues 2
Government
Public
Savings bonds and notes
Government account series 3
14 Non-interest-bearing debt
15
16
17
18
19
20
21
22
1982
1981
930.2
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
1980
By holder4
U.S. government agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
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.
5. Consists of investments offoreign 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
1.42 U.S. GOVERNMENT SECURITIES DEALERS
Finance
A31
Transactions
Par value; averages of daily figures, in millions of dollars
1985
Item
1982
1983
1985 week ending Wednesday
1984
Sept/
Oct/
Nov.
Oct. 23
Oct. 3<y
Nov. 6
Nov. 13 Nov. 20 Nov. 27
1
Immediate delivery 1
U.S. government securities
32,261
42,135
52,778
62,925
71,702
92,039
65.96C
95,745
86,377
86,894
104,413
95,675
2
3
4
5
6
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
18,393
810
6,271
3,555
3,232
22,393
708
8,758
5,279
4,997
26,035
1,305
11,733
7,606
6,099
27,629
1,683
15,295
10,465
7,853
31,795
1,943
15,328
13,613
9,024
36,013
1,954
21,328
18,497
14,247
29,097r
1,421
14,484r
11,881
9,078
39,066
1,605
25,918
17,263
11,894
28,635
2,166
18,620
23,001
13,955
33,295
1,919
18,213
19,465
14,003
46,764
1,953
26,942
15,258
13,496
35,478
2,062
23,351
18,201
16,583
7
8
9
10
11
12
13
14
15
16
17
18
By type of customer
U.S. government securities
dealers
U.S. government securities
brokers
All others 2
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures transactions 3
Treasury bills
Treasury coupons
Federal agency securities
Forward transactions 4
U.S. government securities
Federal agency securities
1,770
2,257
2,919
2,946
3,246
3,125
2,754
4,330
3,809
2,771
3,127
3,472
15,794
14,697
4,140
5,001
2,502
7,595
21,045
18,833
5,576
4,333
2,642
8,036
25,580
24,278
7,846
4,947
3,243
10,018
30,770
29,209
11,666
3,386
3,007
13,466
33,815
34,641
13,337
3,245
2,789
14,381
43,676
45,237
15,282
3,102
2,629
14,703
30,889
32,318'
12,836'
2,690
2,280
14,232
46,101
45,314
13,535
3,791
3,341
13,880
40,768
41,800
12,073
3,009
2,448
15,221
43,137
40,986
15,275
2,990
2,936
14,841
49,617
51,670
20,451
3,849
3,107
15,815
44,163
48,039
15,168
2,844
2,397
15,018
5,055
1,487
261
6,655
2,501
265
6,947
4,503
262
5,836
6,585
234
4,608
6,037
564
4,990
7,442
467
4,585'
5,901r
540
5,788
7,950
694
4,260
7,292
853
4,136
7,894
850
6,545
7,840
169
4,745
7,422
146
835
978
1,493
1,646
1,364
2,843
1,034
3,810
721
4,770
1,736
5,651
1,152
4,419''
648
4,736
819
4,814
699
7,331
2,635
7,092
2,481
4,323
1. Data for immediate transactions does not 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.
A32
DomesticNonfinancialStatistics • February 1986
1.43 U.S. GOVERNMENT SECURITIES DEALERS
Positions and Financing
Averages of daily figures, in millions of dollars
1985
1985 week ending Wednesday
Item
Sept.
Oct.
Nov.
Oct. 30
Nov. 6
Nov. 13
Nov. 20
Nov. 27
Positions
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Net immediate 1
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
14,769
8,226
1,088
3,293
-318
2,026
4,169
5,532
2,832
3,317
14,224
10,800
921
1,912
-78
528
7,313
5,838
3,332
3,159
5,538
5,500
63
2,159
-1,119
-1,174
15,294
7,369
3,874
3,788
2,294'
6,416''
1,059
5,733
-6,381
-4,734'
23,787
8,288
4,179'
5,624
3,891'
12,146
1,056
6,164
-9,192'
-6,483
25,313'
8,850
4,949'
5,699
17,153
17,445
1,112
9,242
-8,209
-2,646
26,485
9,982
5,492
7,449
7,012
14,072
1,096
7,256
-9,736
-5,875
25,001
9,249
4,839'
5,406
14,882
14,995
588
10,634
-7,782
-3,765
26,047
9,475
5,297
7,776
16,138
15,456
913
11,382
-8,749
-3,072
25,548
9,842
5,839
7,295
17.825
18,624
1,442
7,405
-7,699
-2,154
26,016
9,710
5,388
7,548
19,163
19,922
1,368
8,650
-8,533
-2,449
27,889
10,499
5,389
7,044
-2,507
-2,303
-224
-4,125
-1,033
171
-4,525
1,794
233
-6,222'
5,122
-1,209
-13,573
5,789'
-2,677
-15,857
2,621
-1,333
-18,031
4,546'
-3,193
-16,407
3,261
-3,335
-17,445
2,971
-1,221
-15,829
1,614
-591
-14,373
2,873
-622
-788
-1,432
-1.936
-3,561
-1,643
-9,205
-1,464
-10,433
-1,574
-9,325'
-862
-11,103
-1,438
-8,635
-1,524
-9,831
-896
-11,720
-1,330
-11,335
72
-11,155
Financing 2
Reverse repurchase agreements 3
Overnight and continuing
Term agreements
Repurchase agreements 4
18 Overnight and continuing
19 Term agreements
16
17
26,754
48,247
29,099
52,493
44,078
68,357
72,392
80,007
77,247
219,416
n.a.
n.a.
75,713
694,822
79,794
96,171
80,765
97,968
74,295
94,006
69,065
100,601
49,695
43,410
57,946
44,410
75,717
57,047
107,884
67,645
93,334
74,425
n.a.
n.a.
113,650
83,299
124,225
80,589
121,264
85,475
124,373
79,170
93,413
108,969
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. Before 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. Data for
immediate positions does not 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
F E D E R A L A N D F E D E R A L L Y S P O N S O R E D CREDIT A G E N C I E S
A33
Debt Outstanding
Millions of dollars, end of period
1985
Agency
1982
1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department'
Export-Import Bank 2 ' 3
4
5 Federal Housing Administration 4
Government National Mortgage Association
6
participation certificates 5
7
Postal Service 6
8 Tennessee Valley Authority
United States Railway Association 6
9
10 Federally sponsored agencies 7
11 Federal Home Loan Banks
12 Federal Home Loan Mortgage Corporation
13 Federal National Mortgage Association 8
14 Farm Credit Banks
15
Student Loan Marketing Association
1983
1984
Lending to federal and federally
17
18
19
20
21
July
Aug.
Sept.
Oct.
240,068
271,220
279,449
284,871
286,159
289,277
288,857'
292,618
33,055
354
14,218
288
33,940
243
14,853
194
35,145
142
15,882
133
34,915
102
15,706
122
35,646
97
15,746
119
35,354
93
15,746
118
35,338
89
15,744
116
36,103'
82
15,419'
117
36,011
79
15,418
116
2,165
1,471
14,365
194
2,165
1,404
14,970
111
2,165
1,337
15,435
51
2,165
970
15,776
74
2,165
970
16,475
74
2,165
970
16,188
74
2,165
970
16,200'
74
2,165
1,940
16,306'
74
2,165
1,940
16,219
74
204,732
55,967
4,524
70,052
73,004'
2,293
206,128
48,930
6,793
74,594
72,816'
3,402
236,075
65,085
10,270
83,720
71,193'
5,745
244,534
67,765
12,167
88,170
69,321
7,111
249,225
69,898
12,723
89,518
70,039
7,047
250,805
70,244
13,197
90,208
70,069
7,087
253,939
71,949
13,393
91,318
70,092
7,187
252,754'
72,384
12,720'
91,693
68,287'
7,670
256,607
73,260
13,239
92,578
69,274
8,256
126,424
135,791
145,217
149,597
149,957
152,962
152,941
153,513
153,565
14,177
1,221
5,000
12,640
194
14,789
1,154
5,000
13,245
111
15,852
1,087
5,000
13,710
51
15,690
720
5,000
14,154
74
15,729
720
5,000
14,750
74
15,729
720
5,000
14,463
74
15,729
720
5,000
14,455
74
15,409
1,690
5,000
14,381
74
15,409
1,690
5,000
14,474
74
53,261
17,157
22,774
55,266
19,766
26,460
58,971
20,693
29,853
61,461
21,003
31,495
62,606
21,183
31,909
63,546
21,364
32,066
63,779
21,463
31,721
64,169
21,676
31,114
63,969
21,792
31,157
sponsored
Export-Import Bank 3
Postal Service 6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association 6
Other Lending10
22 Farmers Home Administration
23 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.
June
237,787
MEMO
16 Federal Financing Bank debt
May
7. Includes outstanding noncontingent liabilities: Notes, bonds, and debentures. Some data are estimated.
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.
A34
DomesticNonfinancialStatistics • February 1986
1.45 NEW SECURITY ISSUES State and Local Governments
Millions of dollars
1985
Type of issue or issuer,
or use
1982
1983
1984
Feb.
1 All issues, new and refunding'
Mar.
Apr.
May
June
July
Aug/
Sept.
79,138
86,421
106,641
8,510
9,873
12,095
14,097
11,801
12,268
15,239
12,917
21,094
225
58,044
461
21,566
96
64,855
253
26,485
16
80,156
17
3,527
0
4,983
0
2,998
5
6,875
0
3,265
0
8,830
2
4,535
2
9,562
0
2,739
0
9,062
1
5,257
0
7,011
6
3,160
0
12,079
2
3,998
0
8,919
0
Type of issuer
6 State
7 Special district and statutory authority
8 Municipalities, counties, townships, school districts
8,438
45,060
25,640
7,140
51,297
27,984
9,129
63,550
33,962
1,559
4,493
2,458
252
5,754
3,867
958
7,279
3,858
1,298
8,126
4,673
350
7,625
3,826
786
6,893
4,589
800
9,484
4,955
1,175
7,515
4,227
9 Issues for new capital, total
74,804
72,441
94,050
5,890
8,253
9,075
9,279
7,966
7,660
10,709
9,797
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
6,482
6,256
14,259
26,635
8,349
12,822
8.099
4,387
13,588
26,910
7,821
11,637
7,553
7,552
17,844
29,928
15,415
15,758
950
472
1,008
1,848
353
1,259
1,018
173
1,491
3,155
584
1,832
1,121
319
2,347
3,105
293
1,890
1,169
631
1,478
3,454
782
1,765
962
276
1,844
2,956
560
1,368
797
651
720
3,155
553
1,784
1,194
252
1,987
4,283
1,524
1,469
1,260
468
1,401
4,034
629
2,005
2
3
4
5
10
11
12
13
14
15
Type of issue
General obligation
U.S. government loans 2
Revenue
U.S. government loans 2
1. Par amounts of long-term issues based on date of sale.
2. Consists of tax-exempt issues guaranteed by the Farmers Home Administration.
SOURCE. Public Securities Association.
1.46 NEW SECURITY ISSUES Corporations
Millions of dollars
Type of issue or issuer,
or use
1985
1982
1983
1984
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct. p
1 All issues1
84,638
120,074
132,311
14,005
11,790
12,896
19,391
11,854
14,197
11,265'
11,460
2 Bonds2
54,076
68,495
109,683
11,641
8,850
9,738
15,651
8,647
11,241
8,794
9,181
Type of offering
3 Public
4 Private placement
44,278
9,798
47,369
21,126
73,357
36,326
11,641
n.a.
8,850
n.a.
9,738
n.a.
15,651
n.a.
8,647
n.a.
11,241
n.a.
8,794
n.a.
9,181
n.a.
12,822
5,442
1,491
12,327
2,390
19,604
16,851
7,540
3,833
9,125
3,642
27,502
24,607
13,726
4,694
10,679
2,997
52,980
5,660
974
130
500
300
4,077
922
1,317
334
860
0
5,418
1,500
639
357
1,136
150
5,956
8,044
865
512
585
125
5,520
2,688
1,642
76
423
110
3,709
2,352
911
459
835
1,295
5,379
2,079
186
177
1,042
367
4,943
1,953
898
348
863
690
4,429
11 Stocks3
30,562
51,579
22,628
2,364
2,940
3,158
3,740
3,207
2,956
2,471'
2,279
Type
12 Preferred
13 Common
5,113
25,449
7,213
44,366
4,118
18,510
311
2,053
312
2,628
634
2,524
726
3,014
631
2,576
603
2,353
653
1,818'
406
1,873
5,649
7,770
709
7,517
2,227
6,690
14,135
13,112
2,729
5,001
1,822
14,780
4,054
6,277
589
1,624
419
9,665
224
472
32
197
15
1,424
283
1,019
522
157
5
954
504
624
33
185
119
1,693
558
1,453
236
91
151
1,251
601
562
0
87
99
1,798
225
1,288
79
73
18
1,273
820'
507'
107
47
7
983'
279
368
113
408
41
1,070
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. Monthly data 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
1.47
O P E N - E N D INVESTMENT COMPANIES
Market and Corporate
Finance
A35
N e t Sales and A s s e t Position
Millions of dollars
1985
Item
1983
1984r
Mar.
Apr.
May
June
July
Aug.
Sept/
Oct.
INVESTMENT COMPANIES1
1 Sales of own shares 2
2 Redemptions of own shares 3
3 Net sales
4 Assets 4
5
Cash position 5
6
Other
84,345
57,100
27,245
107,480
77,032
30,448
14,582
9,412
5,170
18,049
13,500
4,549
16,408
10,069
6,339
18,191
9,836
8,355
20,284
11,502
8,782
18,049
10,837
7,212
16,936
9,963
6,973
21,924
10,653
11,271
113,599
8,343
105,256
137,126
11,978
125,148
157,065
13,082
143,983
164,087
15,444
148,643
178,275
15,017
163,258
186,284
15,565
170,719
195,707
16,943
178,764
201,608
17,959
183,649
203,210
18,700
184,510
218,341
21,824
196,517
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 A N D THEIR D I S T R I B U T I O N
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1983
Account
1982r
1983r
1984
1985
1984'
Q4'
Qlr
Q2r
Q3'
Q4'
Ql'
Q2'
Q3r
1 Corporate profits with inventory valuation and
2
3
4
5
6
capital consumption adjustment
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
7 Inventory valuation
8 Capita] consumption adjustment
150.0
169.6
63.1
106.5
66.9
39.6
213.8
205.0
75.2
129.8
70.8
59.0
273.3
237.6
93.6
144.0
78.1
65.9
247.6
227.6
84.0
143.6
73.1
70.6
268.0
247.4
99.1
148.3
75.3
73.1
277.8
247.4
100.6
146.7
77.5
69.2
271.2
227.7
87.4
140.3
78.9
61.3
276.2
228.0
87.4
140.6
80.7
60.0
281.7
220.0
83.4
136.6
82.0
54.6
288.1
218.7
82.3
136.4
83.1
53.3
309.1
228.6
87.4
141.1
83.9
57.3
-10.3
-9.2
-9.9
18.8
-5.4
41.0
-8.9
28.9
-13.0
33.5
-5.6
36.0
-1.3
44.8
-1.6
49.8
.7
61.1
2.2
67.2
4.7
75.9
SOURCE. Survey of Current Business (Department of Commerce).
A36
DomesticNonfinancialStatistics • February 1986
1.49 NONFINANCIAL CORPORATIONS
Assets and Liabilities
Billions of dollars, except for ratio
1984
Account
1979
1980
1981
1982
1985
1983
Q2
Q3
Q4
Q1
Q2
1,214.8
1,327.0
1,418.4
1,432.7
1,557.3
1,630.1
1,666.1
1,682.0
1,694.7
1,704.0
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
165.8
30.6
577.8
599.3
183.7
154.7
36.9
615.4
629.8
193.4
150.0
33.2
630.6
656.9
195.4
160.9
36.6
622.3
655.6
206.6
153.5
35.2
635.2
664.6
206.2
154.6
35.1
635.9
663.7
214.7
7 Current liabilities
807.3
889.3
970.0
976.8
1,043.0
1,111.9
1,142.2
1,150.7
1,159.5
1,163.9
8 Notes and accounts payable
9 Other
460.8
346.5
513.6
375.7
546.3
423.7
543.0
433.8
577.8
465.3
605.1
506.9
623.9
518.2
627.4
• 523.3
615.6
543.9
625.9
538.1
10 Net working capital
407.5
437.8
448.4
455.9
514.3
518.1
523.9
531.3
535.2
540.1
11 MEMO: Current ratio1
1.505
1.492
1.462
1.467
1.493
1.466
1.459
1.462
1.462
1.464
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
Statistics, Board of Governors of the Federal Reserve System, Washington, D.C.
20551.
SOURCE. Federal Trade Commission and Bureau of the Census.
C o r p o r a t i o n s " i n t h e J u l y 1978 BULLETIN, p p . 5 3 3 - 3 7 .
Ail 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
1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment •
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1984
Industry
1 Total nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5
Railroad
Air
6
7 Other
Public utilities
8
Electric
9
Gas and other
10 Commercial and other 2
1983
1984
1986
Q2
Q3
Q4
Q1
Q2
Q3'
Q4'
Ql<
304.78
354.44
384.22
349.97
361.48
368.29
371.16
387.83
388.90
388.98
402.13
53.08
63.12
66.24
72.58
72.53
79.89
64.03
71.93
68.26
74.18
71.43
75.53
69.87
75.78
73.%
80.36
72.85
81.19
73.46
82.22
71.95
82.79
15.19
16.86
15.84
16.38
16.82
17.00
15.66
16.51
15.94
15.24
15.30
4.88
4.36
4.72
6.79
3.56
6.17
7.33
4.42
6.02
7.34
3.53
6.14
7.31
3.72
6.47
6.44
3.65
6.18
6.02
4.20
6.01
7.48
3.66
6.37
8.13
5.20
5.77
7.68
4.64
5.93
7.02
5.96
5.83
37.27
7.70
114.45
37.03
10.44
134.75
35.60
12.63
149.96
37.79
10.16
132.67
36.63
11.28
136.80
35.40
11.52
141.13
36.65
11.81
145.16
36.04
12.43
151.02
35.34
12.80
151.69
34.38
13.47
151.96
35.49
13.50
164.30
• T r a d e and services are no longer being reported separately. They are included
in Commercial and other, line 10.
1. Anticipated by business.
1985
1985'
2. "Other" consists of construction; wholesale and retail trade; finance and
insurance; personal and business services; and communication.
SOURCE. Survey of Current Business (Department of Commerce).
Securities
Markets
and Corporate
Finance
A37
1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities
Billions of dollars, end of period
1984
Account
1981
1982
1985
1983
Q1
Q2
Q4
Q3
Q2
Ql
Q3
ASSETS
Accounts receivable, gross
Consumer
Business
Real estate
Total
72.4
100.3
17.9
190.5
78.1
101.4
20.2
199.7
87.4
113.4
22.5
223.4
87.4
120.5
22.2
230.1
90.5
124.4
23.0
238.0
95.6
124.5
25.2
245.3
96.7
135.2
26.3
258.3
99.1
142.1
27.2
268.5
106.0
144.6
28.4
279.0
116.4
141.4
29.0
286.5
Less:
5 Reserves for unearned income
6 Reserves for losses
30.0
3.2
31.9
3.5
33.0
4.0
32.8
4.1
33.9
4.4
36.0
4.3
36.5
4.4
36.6
4.9
38.6
4.8
41.0
4.9
7 Accounts receivable, net
8 All other
157.3
27.1
164.3
30.7
186.4
34.0
193.2
35.7
199.6
35.8
205.0
36.4
217.3
35.4
227.0
35.9
235.6
39.5
240.6
46.3
9 Total assets
184.4
195.0
220.4
228.9
235.4
241.3
252.7
262.9
275.2
286.9
10 Bank loans
11 Commercial paper
16.1
57.2
18.3
51.1
18.7
59.7
16.2
64.8
18.3
68.5
19.7
66.8
21.3
72.5
19.8
79.1
18.5
82.6
18.2
93.6
12 Other short-term
13 Long-term
14 All other liabilities
15 Capital, surplus, and undivided profits
11.3
56.0
18.5
25.3
12.7
64.4
21.2
27.4
13.9
68.1
30.1
29.8
14.1
70.3
32.4
31.1
15.5
69.7
32.1
31.4
16.1
73.8
32.6
32.3
16.2
77.2
33.1
32.3
16.8
78.3
35.4
33.5
16.6
85.7
36.9
34.8
16.6
86.4
36.6
35.7
184.4
195.0
220.4
228.9
235.4
241.3
252.7
262.9
275.2
286.9
1
2
3
4
LIABILITIES
16 Total liabilities and capital
NOTE. Components may not add to totals due to rounding.
These data also appear in the Board's G.20 (422) release. For address, see
inside front cover.
1.52 DOMESTIC FINANCE COMPANIES Business Credit
Millions of dollars, seasonally adjusted except as noted
Type
Changes in accounts
receivable
Extensions
Repayments
1985
1985
1985
Accounts
receivable
outstanding
Oct. 31,
19851
Aug.
1 Total
2
3
4
5
6
7
8
9
10
Retail financing of installment sales
Automotive (commercial vehicles)
Business, industrial, and farm equipment
Wholesale financing
Automotive
Equipment
All other
Leasing
Automotive
Equipment
Loans on commercial accounts receivable and factored commercial accounts receivable
All other business credit
1. Not seasonally adjusted.
Sept.
146,057
1,430
-3,380
14,341
20,297
389
-37
18,923
4,450
7,139
Oct.
r
Aug.
Sept.
Oct.
Aug.
Sept.
Oct.
r
5,112
28,942
26,111
31,099
27,512
29,491
660
-329
586
-46
1,212
1,105
1,488
1,180
1,441
1,222
823
1,142
828
1,509
855
1,268
759
-80
59
-4,746
6
118
3,716
32
45
10,471
882
1,695
7,853
508
1,751
12,252
494
1,815
9,712
962
1,636
12,599
502
1,633
8,536
462
1,770
15,847
38,252
461
231
409
271
417
381
1,117
1,048
1,119
1,215
972
1,178
656
817
710
944
555
797
15,462
11,346
-354
2
-446
-662
643
9,994
1,418
9,654
1,343
9,749
1,976
10,348
1,416
8,977'
1,789
10,411
1,333
(>11'
25,987
NOTE. These data also appear in the Board's G.20 (422) release. For address,
see inside front cover.
A38
DomesticNonfinancialStatistics • February 1986
1.53 MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1985
Item
1982
1983
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 series*
8 HUD series4
94.6
69.8
76.6
27.6
2.95
14.47
92.8
69.5
77.1
26.7
2.40
12.20
96.8
73.7
78.7
27.8
2.64
11.87
106.4
78.4
76.1
26.8
2.49
11.55
102.4
79.7
79.9
27.7
2.40
11.31
119.2
89.4
77.5
27.5
2.24
10.94
104.4
74.4
74.6
24.5
2.46
10.78
104.6
76.7
76.0
26.7
2.62
10.69
104. f
77. 1'
76.(K
26.7'
2.49'
10.64'
105.9
77.2
75.2
26.3
2.52
10.57
15.12
15.79
12.66
13.43
12.37
13.80
12.01
12.49
11.75
12.06
11.34
12.09
11.24
12.06
11.17
12.02
11.09'
11.86
11.02
11.56
15.30
14.68
13.11
12.25
13.81
13.13
12.28
11.93
11.89
11.54
12.12
11.48
11.99
11.24
12.04
11.29
11.87
11.16
11.28
10.81
SECONDARY MARKETS
Yield (percent per annum)
9 FHA mortgages (HUD series) 5 .
10 GNMA securities 6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12 FHA/VA-insured
13 Conventional
66,031
39,718
26,312
74,847
37,393
37,454
83,339
35,148
48,191
93,610
34,428
59,182
94,777
34,307
60,470
95,634
34,276
61,359
96,324
34,177
62,147
96,769
34,084
62,685
97,228
33,885
63,343
97,807
33,828
63,979
Mortgage transactions (during period)
14 Purchases
15 Sales
15,116
2
17,554
3,528
16,721
978
1,703
0
1,904
0
1,918
251
1,921
230
1,739
101
1,767
200
1,624
n.a.
Mortgage commitments1
16 Contracted (during period)
17 Outstanding (end of period)
22,105
7,606
18,607
5,461
21,007
6,384
2,074
5,589
1,593
5,062
1,583
4,517
1,797
4,245
1,638
3,974
1,733
3,840
1,199
3,330
5,131
1,027
4,102
5,996
974
5,022
9,283
910
8,373
11,879
843
11,036
12,576
838
11,738
12,844
842
12,002
13,521
835
12,686
13,088
829
12,259
13,025
823
12,202
n.a.
n.a.
n.a.
Mortgage transactions (during period)
21 Purchases
22 Sales
23,673
24.170
23,089
19,686
21,886
18,506
3,591
3,189
4,106
3,292
4,626
4,200
3,602
2,682
4,219
4,501
3,215
3,076
n.a.
n.a.
Mortgage
commitments9
23 Contracted (during period)
24 Outstanding (end of period)
28,179
7,549
32,852
16,964
32,603
13,318
3,701
n.a.
5,172
n.a.
3,259
n.a.
3,958
n.a.
2,919
n.a.
3,995
n.a.
n.a.
n.a.
FEDERAL HOME LOAN MORTGAGE CORPORATION
Mortgage holdings (end of period)8
18 Total
19 FHA/VA
20 Conventional
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 averages of Friday figures from the
Wall Street Journal.
7. Includes some multifamily and nonprofit hospital loan commitments in
addition to 1- to 4-family loan commitments accepted in FNMA's free market
auction system, and through the FNMA-GNMA tandem plans.
8. Includes participation as well as whole loans.
9. Includes conventional and government-underwritten loans. FHLMC's mortgage commitments and mortgage transactions include activity under mortgage/
securities swap programs, while the corresponding data for FNMA exclude swap
activity.
Real Estate
1.54
A39
MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
1985
1984
Type of holder, and type of property
1982
1983
1984
Q3
1
2
3
4
5
All holders
1- to 4-family
Multifamily
Commercial
Farm
6 Major financial institutions
7
Commercial banks 1
1- to 4-family
8
9
Multifamily
10
Commercial
11
Farm
Q4
Q1
Q2
Q3'
1,631,262'
1,074,670
145,767
300,799
110,026'
1,811,395'
1,192,840
156,738
349,195
112,622'
2,022,521'
1,329,606'
170,536'
410,742'
111,637'
1,972.773'
1,296^534'
167,892'
395,683'
112,664'
2,022,521'
1,329,606'
170,536'
410,742'
111,637'
2,068,282'
1,360,325'
175,474'
420,997'
111,486'
2,126,905'
1,401,952'
178,488'
435,708'
110,757'
2,183,935
1,443,651
181,452
449,821
109,011
1,021,327
301,272
173,804
16,480
102,553
8,435
1,108,249
330,521
182,514
18,410
120,210
9,387
1,241,197
374,780
196,540
20,216
147,845
10,179
1,214,729'
363,156
193,090
20,083
139,742
10,241
1,241,197
374,780
196,540
20,216
147,845
10,179
1,261,901
383,444
198,912
21,974
152,242
10,316
1,292,438
395,956
203,510
21,698
160,121
10,627
1,321,195
408,227
207,775
21,963
167,532
10,957
94,452
64,488
14,780
15,156
28
131,940
93,649
17,247
21,016
28
154,441
107,302
19,817
27,291
31
146,072
101,810
18,947
25,285
30
154,441
107,302
19,817
27,291
31
161,032
111,592
20,668
28,741
31
165,705
114,375
21,357
29,942
31
173,476
119,023
22,368
31,971
114
12
13
14
15
16
Mutual savings banks
1- to 4-family
Multifamily
Commercial
Farm
17
18
19
20
Savings and loan associations
1- to 4-family
Multifamily
Commercial
483,614
393,323
38,979
51,312
494,789
390,883
42,552
61,354
555,277
431,450
48,309
75,518
550,129
429,101
47,861
73,167
555,277
431,450
48,309
75,518
559,263
433,429
48,936
76,898
569,292
441,201
49,813
78,278
575,563
446,061
50,362
79,140
21
22
23
24
25
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
141,989
16,751
18,856
93,547
12,835
150,999
15,319
19,107
103,831
12,742
156,699
14,120
18,938
111,175
12,466
155,372'
14,159'
18,769'
109,801'
12,643'
156,699
14,120
18,938
111,175
12,466
158,162
13,840
18,964
113,187
12,171
161,485
13,562
18,983
116,812
12,128
163,929
13,382
18,972
119,543
12,032
138,741
4,227
676
3,551
148,328
3,395
630
2,765
158,993
2,301
585
1,716
154,768
2,389
594
1,795
158,993
2,301
585
1,716
163,531
1,964
576
1,388
165,912'
1,825
564
1,261
166,248
1,640
552
1,088
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
1,786
783
218
377
408
2,141
1,159
173
409
400
1,276
213
119
497
447
738
206
126
113
293
1,276
213
119
497
447
1,062
156
82
421
403
790
223
136
163
268
577
185
139
72
181
35
36
37
Federal Housing and Veterans
Administration
1- to 4-family
Multifamily
5,228
1,980
3,248
4,894
1,893
3,001
4,816
2,048
2,768
4,749
1,982
2,767
4,816
2,048
2,768
4,878
2,181
2,697
4,888'
2,199'
2,689'
4,918
2,251
2,667
38
39
40
Federal National Mortgage Association
1- to 4-family
Multifamily
71,814
66,500
5,314
78,256
73,045
5,211
87,940
82,175
5,765
84,850
79,175
5,675
87,940
82,175
5,765
91,975
86,129
5,846
94,777
88,788
5,989
96,769
90,590
6,179
41
42
43
Federal Land Banks
1- to 4-family
Farm
50,953
3,130
47,823
52,010
3,081
48,929
52,261
3,074
49,187
52,595
3,068
49,527
52,261
3,074
49,187
52,104
3,064
49,040
51,056
3,006
48,050
49,255
2,895
46,360
44
45
46
Federal Home Loan Mortgage Corporation.
1- to 4-family
Multifamily
4,733
4,686
47
7,632
7,559
73
10,399
9,654
745
9,447
8,841
606
10,399
9,654
745
11,548
10,642
906
12,576
11,288
1,288
13,089
11,457
1,632
47 Mortgage pools or trusts 2
48 Government National Mortgage Association
49
1- to 4-family
50
Multifamily
216,654
118,940
116,038
2,902
285,073
159,850
155,950
3,900
332,057
179,981
175,589
4,392
317,548
175,770
171,481
4,289
332,057
179,981
175,589
4,392
347,793
185,954
181,419
4,535
365,748
192,925
188,228
4,697
388,948
201,026
196,198
4,828
51
52
53
Federal Home Loan Mortgage Corporation.
1- to 4-family
Multifamily
42,964
42,560
404
57,895
57,273
622
70,822
70,253
569
63,964
63,352
612
70,822
70,253
569
76,759
75,781
978
83,327
82,369
958
91,915
90,997
918
54
55
56
Federal National Mortgage Association 3 . . .
1- to 4-family
Multifamily
14,450
14,450
n.a.
25,121
25,121
n.a.
36,215
35,965
250
32,888
32,730
158
36,215
35,965
250
39,370
38,772
598
42,755
41,985
770
48,769
47,857
912
57
58
59
60
61
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
40,300
20,005
4,344
7,011
8,940
42,207
20,404
5,090
7,351
9,362
45,039
21,813
5,841
7,559
9,826
44,926
21,595
5,618
7,844
9,869
45,039
21,813
5,841
7,559
9,826
45,710
21,928
6,041
7,681
10,060
46,741
21,962
6,377
8,014
10,388
47,238
22,090
6,415
8,192
10,541
254,540'
155,496
36,644
30,843
31,557'
269,745'
164,360
38,587
35,024
31,774'
290,274'
178,825'
41,091'
40,857'
29,501'
285,728'
175,35C
40,586'
39,731'
30,061'
290,274'
178,825'
41,091'
40,857'
29,501'
295,057'
181,904'
41,861'
41,827'
29,465'
302,807'
188,692'
42,472'
42,378'
29,265'
307,544
192,338
43,009
43,371
28,826
62 Individual and others 4
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.
A40
DomesticNonfinancialStatistics • February 1986
1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change
Millions of dollars
1984
Dec.
1985
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Amounts outstanding (end of period)
1 Total
383,701
460,500
460,500
471,567
479,935
488,666
495,813
503,834
512,393
524,698
530,153
By major holder
2 Commercial banks
3 Finance companies
4 Credit unions
5 Retailers 2
6 Savings and loans
1 Gasoline companies
8 Mutual savings banks
171,978
87,429
53,471
37,470
23,108
4,131
6,114
212,391
96,747
67,858
40,913
29,945
4,315
8,331
212,391
96,747
67,858
40,913
29,945
4,315
8,331
219,970
99,133
70,432
37,082
32,349
3,820
8,781
223,850
101,324
71,418
37,091
33,514
3,834
8,904
226,973
104,130
72,381
37,472
34,754
3,918
9,038
229,676
105,971
73,468
37,548
35,901
4,075
9,174
232,913
107,985
74,614
37,399
37,301
4,316
9,306
236,390
110,378
75,689
37,481
38,496
4,467
9,492
241,030
116,422
76,447
37,421
39,421
4,346
9,611
242,220
118,846
76,957
37,784
40,408
4,241
9,697
By major type of credit
9 Automobile
10 Commercial banks
11 Credit unions
12 Finance companies
143,114
67,557
25,574
49,983
172,589
85,501
32,456
54,632
172,589
85,501
32,456
54,632
179,661
89,257
33,687
56,717
183,558
90,915
34,159
58,484
187,795
92,403
34,620
60,772
191,315
94,099
35,139
62,077
194,678
95,763
35,687
63,228
197,768
96,576
36,201
64,991
205,102
98,042
36,563
70,497
208,121
98,707
36,807
72,607
13 Revolving
14 Commercial banks
15 Retailers
16 Gasoline companies
81,977
44,184
33,662
4,131
101,555
60,549
36,691
4,315
101,555
60,549
36,691
4,315
100,434
63,684
32,930
3,820
101,887
65,127
32,926
3,834
103,492
66,311
33,263
3,918
104,333
66,956
33,302
4,075
105,539
68,093
33,130
4,316
107,584
69,949
33,168
4,467
109,941
72,514
33,081
4,346
111,442
73,778
33,423
4,241
17 Mobile home
18 Commercial banks
19 Finance companies
20
Savings and loans
21 Credit unions
23,862
9,842
9,547
3,906
567
24,556
9,610
9,243
4,985
718
24,556
9,610
9,243
4,985
718
24,456
9,425
8,981
5,305
745
24,675
9,432
8,992
5,496
755
24,925
9,445
9,016
5,699
765
25,205
9,480
9,061
5,887
777
25,545
9,493
9,146
6,117
789
25,826
9,550
9,163
6,313
800
26,043
9,600
9,170
6,465
808
26,187
9,570
9,177
6,627
813
134,748
50,395
27,899
27,330
3,808
19,202
6,114
161,800
56,731
32,872
34,684
4,222
24,960
8,331
161,800
56,731
32,872
34,684
4,222
24,960
8,331
167,016
57,604
33,435
36,000
4,152
27,044
8,781
169,815
58,376
33,848
36,504
4,165
28,018
8,904
172,454
58,814
34,342
36,996
4,209
29,055
9,038
174,960
59,141
34,833
37,552
4,246
30,014
9,174
178,072
59,564
35,611
38,138
4,269
31,184
9,306
181,215
60,315
36,224
38,688
4,313
32,183
9,492
183,612
60,874
36,755
39,076
4,340
32,956
9,611
184,403
60,165
37,062
39,337
4,361
33,781
9,697
22 Other
23 Commercial banks
24
Finance companies
25
Credit unions
26 Retailers
27 Savings and loans
28 Mutual savings banks
Net change (during period)
29 Total
48,742
76,799
6,819
8,342
8,270
9,042
5,227
6,247
5,726
11,531
6,628
19,488
18,572
6,218
5,075
7,285
68
1,322
40,413
18,636
14,387
3,443
6,837
184
2,217
3,028
1,196
1,336
389
576
117
177
4,847
2,048
797
91
715
-142
-14
3,853
1,885
1,215
168
1,063
-45
131
4,108
2,373
673
341
1,327
59
161
1,690
1,218
797
-31
1,417
-51
187
1,824
1,629
1,149
112
1,338
21
174
1,764
2,371
479
-99
969
103
139
3,748
6,407
374
-27
924
-43
148
1,462
3,140
956
97
747
62
164
By major type of credit
37 Automobile
38 Commercial banks
39 Credit unions
40
Finance companies
16,856
8,002
2,978
11,752
29,475
17,944
6,882
9,298
2,687
1,275
640
772
3,391
1,767
381
1,243
3,488
1,546
580
1,362
3,792
1,589
325
1,878
2,686
1,488
380
818
2,365
1,025
550
790
2,206
136
226
1,844
7,204
1,048
180
5,976
3,653
599
459
2,595
41 Revolving
42
Commercial banks
43 Retailers
44
Gasoline companies
12,353
7,518
4,767
68
19,578
16,365
3,029
184
1,445
1,001
327
117
2,631
2,698
75
-142
2,126
2,003
168
-45
2,429
2,095
275
59
-73
42
-64
-51
856
733
102
21
936
968
-135
103
1,974
2,071
-54
-43
1,519
1,385
72
62
45 Mobile home
46 Commercial banks
47
Finance companies
48
Savings and loans
49 Credit unions
1,452
237
776
763
64
694
-232
-608
1,079
151
117
29
-13
88
13
-11
-50
-63
92
10
218
19
13
175
11
186
-21
-19
219
7
196
-31
1
217
9
324
-22
74
261
11
199
3
-13
204
12
168
61
-19
121
5
168
-15
32
143
8
18,081
3,731
6,044
3,176
308
6,522
1,322
27,052
6,336
9,946
7,354
414
5,758
2,217
2,570
723
437
683
62
488
177
2,331
432
868
406
16
623
-14
2,438
285
510
624
0
888
131
2,635
445
514
341
66
1,108
161
2,418
191
399
408
33
1,200
187
2,702
88
765
588
10
1,077
174
2,385
657
540
248
36
765
139
2,185
568
450
189
27
803
148
1,288
-507
513
489
25
604
164
30
31
32
33
34
35
36
By major holder
Commercial banks
Finance companies
Credit unions
Retailers 2
Savings and loans
Gasoline companies
Mutual savings banks
50 Other
51 Commercial banks
52 Finance companies
53 Credit unions
54 Retailers
55
Savings and loans
56 Mutual savings banks
1. The Board's series cover most short- and intermediate-term credit extended
to individuals through regular business channels, usually to finance the purchase
of consumer goods and services or to refinance debts incurred for such purposes,
and scheduled to be repaid (or with the option of repayment) in two or more
installments.
2. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
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, $85.9 billion at the end of
1982, $96.9 billion at the end of 1983, and $116.6 billion at the end of 1984.
These data also appear in the Board's G.19 (421) release. For address, see
inside front cover.
Consumer Installment Credit
1.56
A41
T E R M S O F C O N S U M E R I N S T A L L M E N T CREDIT
Percent unless noted otherwise
1985
Item
1982
1983
1984
May
Apr.
June
Aug.
July
Sept.
Oct.
INTEREST RATES
1
2
3
4
5
6
Commercial banks 1
48-month new car 2
24-month personal
120-month mobile home 2
' Credit card
Auto finance companies
New car
Used car
16.82
18.64
18.05
18.51
13.92
16.50
16.08
18.78
13.71
16.47
15.58
18.77
n.a.
n.a.
n.a.
n.a.
13.16
16.09
15.03
18.74
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
12.72
15.84
14.72
18.62
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
16.15
20.75
12.58
18.74
14.62
17.85
11.92
17.78
11.87
17.84
12.06
17.77
12.46
17.49
10.87
17.57
8.84
17.31
9.97
17.21
45.9
37.0
45.9
37.9
48.3
39.7
51.5
41.3
50.9
41.4
51.3
41.3
51.7
41.5
51.1
41.6
51.2
41.4
51.5
41.4
85
90
86
92
88
92
91
93
91
94
91
94
91
95
91
95
92
95
93
95
8,178
4,746
8,787
5,033
9,333
5,691
9,305
6,043
9,775
6,117
9,965
6,116
10,355
6,146
10,422
6,139
10,449
6,097
10,498
6,091
OTHER TERMS 3
7
8
9
10
11
12
Maturity (months)
New car
Used car
Loan-to-value ratio
New car
Used car
Amount financed (dollars)
New car
Used car
1. 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.
NOTE. These data also appear in the Board's G.19 (421) release. For address,
see inside front cover.
A42
1.57
Domestic Financial Statistics • February 1986
F U N D S R A I S E D I N U . S . CREDIT M A R K E T S
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1982
Transaction category, sector
1979
1980
1981
1982
1984
1983
1985'
1984
1983
H2
HI
H2
HI
H2
HI
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors . . . .
By sector and instrument
2 U.S. government
3 Treasury securities
4 Agency issues and mortgages
388.7
340.0
371.6
398.3
538.9
755.6
442.1
508.8
569.0
704.0
807.3
718.0
222.0
222.1
-.1
151.1
151.2
-.1
172.7
172.9
-.2
224.9
225.0
-.1
181.1
181.2
-.1
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
198.8
199.0
-.2
218.4
218.8
-.4
5 Private domestic nonfinancial sectors
6 Debt capital instruments
7
Tax-exempt obligations
8
Corporate bonds
9
Mortgages
10
Home mortgages
11
Multifamily residential
12
Commercial
Farm
13
351.3
213.9
30.3
17.3
166.2
121.7
8.3
24.4
11.8
260.8
186.3
30.3
26.7
129.4
93.8
7.1
19.2
9.3
284.2
153.7
23.4
21.8
108.5
71.6
4.8
22.2
9.9
237.0
153.5
48.6
18.7
86.2
50.4
5.3
25.2
5.3
352.3
249.1
57.3
16.0
175.7
115.6
9.4
47.6
3.0
556.8
322.1
65.8
42.3
214.1
139.2
14.0
58.8
2.1
223.7
167.1
54.6
25.3
87.1
50.1
5.8
27.3
3.9
286.7
225.4
57.3
21.4
146.7
96.2
6.3
42.3
1.9
417.9
272.7
57.3
10.6
204.7
135.1
12.6
53.0
4.1
531.3
281.8
38.9
24.4
218.5
144.8
16.0
55.6
2.0
582.4
362.4
92.6
60.2
209.6
133.5
12.0
62.0
2.1
536.9
349.7
88.5
61.5
199.7
136.7
15.1
49.7
-1.8
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
137.5
45.4
51.2
11.1
29.7
74.5
4.7
37.0
5.7
27.1
130.5
22.7
54.7
19.2
33.9
83.6
20.1
54.1
-4.7
14.0
103.3
59.8
26.7
-1.6
18.3
234.8
96.5
79.4
23.7
35.2
56.6
21.7
41.9
-19.3
12.4
61.3
44.1
13.7
-10.0
13.6
145.2
75.5
39.8
6.9
23.1
249.5
102.1
90.2
33.5
23.7
220.0
90.9
68.7
13.8
46.7
187.2
116.7
25.4
16.3
28.8
19
20
21
22
23
24
By borrowing sector
State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
351.3
17.6
181.0
21.4
35.3
96.0
260.8
17.2
117.9
14.3
31.0
80.4
284.2
6.8
119.2
16.4
38.4
103.4
237.0
25.9
90.4
7.9
40.9
71.9
352.3
37.6
190.4
4.5
65.2
54.6
556.8
45.0
249.5
2.9
77.8
181.7
223.7
29.3
93.5
5.9
42.1
52.9
286.7
36.1
156.0
1.1
55.5
38.0
417.9
39.2
224.8
7.8
75.0
71.1
531.3
21.4
248.2
2.1
83.0
176.6
582.4
68.6
250.7
3.8
72.5
186.8
536.9
71.6
268.0
-7.2
71.4
133.0
25 Foreign net borrowing in United States
26
Bonds
27 Bank loans n.e.c
28 Open market paper
29
U.S. government loans
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
1.7
4.1
-7.8
1.4
4.0
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
22.9
1.1
-4.6
20.9
5.5
-19.5
7.0
-11.0
-18.1
2.6
-7.1
5.2
-6.0
-8.8
2.6
408.9
367.2
398.8
414.0
557.8
757.4
463.3
524.0
591.5
726.9
787.8
710.9
30 Total domestic plus foreign
Financial sectors
31 Total net borrowing by financial sectors
By instrument
32 U.S. government related
33
Sponsored credit agency securities
34 Mortgage pool securities
35
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
Finance companies
48
49 REITs
82.4
57.6
89.0
76.2
85.2
130.3
57.5
66.7
103.7
119.2
141.3
165.6
47.9
24.3
23.1
6
34.5
7.8
44.8
24.4
19.2
1 2
12.8
1.8
47.4
30.5
15.0
1.9
41.6
3.5
67.8
1.4
66.4
74.9
30.4
44.4
69.7
7.5
62.2
66.2
-4.1
70.3
69.4
6.9
62.5
69.6
29.9
39.7
80.1
31.0
49.2
92.7
26.1
66.7
17.4
8.6
*
*
-.5
18.0
9.2
-.9
4.8
7.1
.9
20.9
16.2
-.2
16.0
-7.0
61.2
24.7
-.1
1.6
19.5
15.5
72.8
30.6
*
-12.2
11.2
.1
.6
-14.6
-9.5
34.4
10.7
*
55.4
18.5
-.1
1.0
20.4
15.7
.5
6.4
*
64.9
14.9
49.5
.4
11.3
9.7
.1
1.9
-1.1
.8
1.8
28.8
11.7
24.8
23.1
34.5
1.6
6.5
12.6
15.3
-.1
25.6
19.2
12.8
.5
6.9
7.4
-1.1
-.5
32.4
15.0
41.6
.4
8.3
15.5
18.2
-.2
1.4
66.4
17.4
.5
8.6
-2.1
11.3
.3
30.4
44.4
55.4
4.4
10.9
22.7
18.1
.2
7.5
62.2
-12.2
1.7
-5.8
-9.3
1.9
15.3
49.5
11.3
1.2
1.9
2.5
6.3
*
*
-2.5
8.7
-12.1
2.2
23.4
-2.0
49.6
12.2
-.1
.3
21.3
15.9
-4.1
70.3
.5
.8
6.1
-9.3
3.9
-.3
6.9
62.5
34.4
.2
11.1
5.2
18.8
-.2
29.9
39.7
49.6
4.8
20.0
19.7
5.6
.3
31.0
49.2
61.2
3.9
1.8
25.6
30.6
.1
26.1
66.7
72.8
5.2
9.2
10.9
48.4
.1
590.7
288.4
57.3
32.5
146.6
44.1
22.5
-5.9
5.3
695.2
220.5
57.3
24.3
204.7
75.5
40.4
46.8
25.7
846.1
242.4
38.9
37.7
218.3
102.1
85.9
75.7
45.1
929.2
305.1
92.6
92.0
209.4
90.9
59.3
15.2
64.8
876.5
273.9
88.5
97.2
199.6
116.7
21.2
36.3
43.1
-40.8
39.6
-80.4
-84.5
4.8
-.7
-25.5
35.7
-61.2
-69.4
5.3
2.9
25.9
92.0
-66.1
-75.7
5.4
4.2
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
491.3
84.8
30.3
29.0
166.1
45.4
52.9
40.3
42.4
424.9
122.9
30.3
29.3
129.3
4.7
47.7
20.6
40.1
487.8
133.0
23.4
30.7
108.4
22.7
59.2
54.0
56.2
490.2
225.9
48.6
35.0
86.2
20.1
49.9
4.9
19.7
643.0
254.4
57.3
28.4
175.6
59.8
31.4
20.4
15.5
887.6
273.8
65.8
64.8
213.9
96.5
72.6
45.4
54.9
520.8
288.3
54.6
47.5
87.1
21.7
37.8
-25.0
8.9
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
-4.3
.1
-4.3
-7.8
2.7
.8
21.9
5.2
16.8
12.9
1.8
2.1
-3.0
6.3
-9.3
-11.5
1.9
.3
35.3
18.4
16.9
11.4
4.0
1.5
67.8
32.8
35.0
28.3
2.7
4.0
-33.1
37.7
-70.8
-77.0
5.1
1.1
47.2
24.3
22.9
15.8
4.1
3.0
83.4
36.8
46.7
38.2
2.7
5.7
52.1
28.9
23.2
18.4
2.6
2.2
Flow of Funds
A43
1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates.
1982
Transaction category, or sector
1979
1980
1981
1982
1983
1985r
1984
1983
1984
H2
HI
H2
HI
H2
HI
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
388.7
340.0
371.6
398.3
538.9
755.6
442.1
508.8
569.0
704.0
807.3
718.0
By public agencies and foreign
2 Total net advances
3
U.S. government securities
Residential mortgages
4
5
FHLB advances to savings and loans
6
Other loans and securities
75.2
-6.3
35.8
9.2
36.5
97.1
15.8
31.7
7.1
42.5
97.7
17.1
23.5
16.2
40.9
114.1
22.7
61.0
.8
29.5
117.5
27.6
76.1
-7.0
20.8
142.2
36.0
56.5
15.7
34.1
127.1
35.7
74.5
-9.5
26.5
120.2
40.7
80.2
-12.1
11.5
114.7
14.4
72.1
-2.0
30.2
123.2
29.5
52.8
15.9
25.1
161.2
42.5
60.1
15.5
43.2
193.3
52.1
86.0
11.7
43.5
7
8
9
10
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
19.0
53.1
7.7
-4.5
23.7
45.6
4.5
23.3
24.0
48.2
9.2
16.2
15.9
65.5
9.8
22.8
9.7
69.8
10.9
27.1
17.2
73.3
8.4
43.4
17.1
69.1
15.7
25.3
9.1
68.6
15.6
27.0
10.3
71.0
6.2
27.2
7.9
73.6
11.9
29.9
26.5
73.0
4.9
56.9
19.4
97.7
27.3
48.9
11
12
Agency and foreign borrowing not in line 1
Sponsored credit agencies and mortgage pools .
Foreign
47.9
20.2
44.8
27.2
47.4
27.2
64.9
15.7
67.8
18.9
74.9
1.7
69.7
21.2
66.2
15.3
69.4
22.5
69.6
22.9
80.1
-19.5
92.7
-7.1
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
381.6
91.0
30.3
18.5
94.2
156.7
9.2
314.9
107.1
30.3
19.3
69.1
96.3
7.1
348.5
115.9
23.4
18.8
52.9
153.8
16.2
364.8
203.1
48.6
14.8
-5.5
104.6
.8
508.1
226.9
57.3
14.9
48.9
153.0
-7.0
690.0
237.8
65.8
29.9
96.6
275.6
15.7
405.9
252.6
54.6
29.6
-18.7
78.2
-9.5
470.0
247.6
57.3
21.4
22.2
109.4
-12.1
546.1
206.1
57.3
8.5
75.5
196.7
-2.0
673.3
213.0
38.9
17.7
107.9
311.7
15.9
706.8
262.7
92.6
42.2
85.3
239.5
15.5
610.3
221.8
88.5
33.9
65.7
212.1
11.7
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
316.4
123.1
56.5
85.6
51.2
281.3
100.6
54.5
94.5
31.7
317.2
102.3
27.4
97.6
89.9
287.6
107.2
31.4
107.4
41.5
382.7
136.1
140.5
94.2
11.9
553.2
181.9
143.0
123.1
105.1
300.7
114.5
37.6
103.8
44.8
334.6
121.6
132.7
83.0
-2.7
430.7
150.6
148.4
105.3
26.5
548.1
196.0
161.5
111.8
78.8
558.3
167.9
124.6
134.4
131.4
472.9
149.6
62.0
117.1
144.2
25 Sources of funds
26 Private domestic deposits and RPs
27 Credit market borrowing
316.4
137.4
34.5
281.3
169.6
12.8
317.2
211.9
41.6
287.6
174.4
11.3
382.7
205.2
17.4
553.2
287.7
55.4
300.7
201.7
-12.2
334.6
194.1
.5
430.7
216.3
34.4
548.1
277.1
49.6
558.3
298.2
61.2
472.9
173.8
72.8
28
29
30
31
32
144.5
27.6
.4
72.9
43.6
98.8
-21.7
-2.6
83.7
39.4
63.7
-8.7
-1.1
90.7
-17.2
101.8
-26.7
6.1
103.2
19.3
160.0
22.1
-5.3
95.1
48.1
210.1
19.0
4.0
111.7
75.4
111.2
-25.1
14.1
95.3
26.9
140.0
-14.2
10.1
83.5
60.6
180.0
58.5
-20.8
106.8
35.6
221.3
27.2
1.7
118.0
74.6
198.9
10.9
6.4
105.5
76.2
226.3
10.8
19.4
117.4
78.8
Private domestic nonfinancial investors
33 Direct lending in credit markets
34
U.S. government securities
35
State and local obligations
36 Corporate and foreign bonds
37 Open market paper
38 Other
99.7
52.5
9.9
-1.4
8.6
30.1
46.5
24.6
7.0
-11.0
-3.1
29.1
72.9
29.3
11.1
-3.9
2.7
33.7
88.5
32.1
29.2
3.9
-.6
24.0
142.8
88.3
43.5
-9.2
6.5
13.7
192.2
122.8
42.2
*
-1.0
28.2
93.0
28.9
29.7
13.8
-4.7
25.4
135.9
97.5
47.2
-14.5
-6.0
11.8
149.8
79.1
39.8
-4.0
19.1
15.6
174.8
128.3
24.3
-8.4
4.4
26.2
209.6
117.3
60.1
8.5
-6.5
30.3
210.2
110.0
49.2
11.4
15.7
23.9
39 Deposits and currency
40 Currency
41 Checkable deposits
42
Small time and savings accounts
43 Money market fund shares
44
Large time deposits
45
Security RPs
46 Deposits in foreign countries
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
181.6
9.7
15.4
138.1
24.7
-7.7
3.8
-2.5
224.4
14.3
23.0
219.5
-44.1
-7.5
14.3
4.8
292.2
8.6
21.4
149.2
47.2
75.7
-5.8
-4.0
211.5
12.7
29.3
193.1
10.0
-37.3
6.6
-2.9
215.9
14.8
49.1
278.9
-84.0
-61.0
11.0
7.0
232.8
13.8
-3.0
160.1
-4.2
45.9
17.5
2.7
288.5
15.9
25.0
129.9
30.2
88.8
3.3
-4.5
296.0
1.4
17.7
168.6
64.2
62.7
-15.0
-3.6
188.0
18.6
7.4
162.7
4.2
.8
-1.3
-4.3
47 Total of credit market instruments, deposits and
currency
246.5
227.6
294.7
270.1
367.2
484.5
304.5
351.8
382.6
463.3
505.6
398.3
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
18.4
82.9
23.1
26.4
89.3
1.6
24.5
91.0
7.6
27.6
78.8
-3.9
21.1
75.3
49.2
18.8
80.2
62.4
27.4
74.1
.1
22.9
71.2
12.8
19.4
78.9
85.7
17.0
81.4
57.0
20.5
79.0
67.8
27.2
77.5
59.7
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
-4.3
.1
-4.3
12.9
-17.1
21.9
5.2
16.8
24.9
-3.0
-3.0
6.3
-9.3
20.9
-23.9
35.3
18.4
16.9
37.1
-1.8
67.8
32.8
35.0
56.4
11.4
-33.1
37.7
-70.8
11.1
-44.3
47.2
24.3
22.9
63.9
-16.7
83.4
36.8
46.7
76.2
7.2
52.1
28.9
23.2
36.5
15.6
-40.8
39.6
-80.4
2.6
-43.4
-25.5
35.7
-61.2
19.6
-45.1
25.9
92.0
-66.1
40.9
-15.0
48
49
50
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
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 line11and 12. Also line 20less 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 lAine \.
49. Line 20/line 13.
50. Sum of lines 10 and 29.
51. 53. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding may be obtained from Flow of Funds Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.
A44
DomesticNonfinancialStatistics • February 1986
2.10 NONFINANCIAL BUSINESS ACTIVITY
Selected Measures'
1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1985
Measure
1982
1983
1984
Mar.
Apr.
May
June
July
Aug.'
Sept.'
Oct.'
Nov.
1
Industrial production
103.1
109.2
121.8
124.0
124.1
124.1
124.3
124.1
125.2
125.0
124.6
125.1
2
3
4
5
6
7
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
107.8
109.5
101.4
120.2
101.7
96.7
113.9
114.7
109.3
121.7
111.2
102.8
127.1
127.8
118.2
140.5
124.9
114.6
130.3
130.8
119.8
145.4
128.6
115.5
130.8
131.3
119.5
146.9
129.3
115.0
131.4
131.7
120.0
147.1
130.3
114.2
131.6
131.6
120.4
146.6
131.4
114.3
131.6
131.8
120.1
147.3
130.7
113.8
133.0
133.3
121.5
149.0
132.0
114.5
133.1
133.3
121.7
148.6
132.5
114.1
132.5
132.6
121.1
147.7
132.5
113.6
133.1
133.2
121.7
148.5
132.6
114.2
8
Industry groupings
Manufacturing
102.2
110.2
123.9
126.3
126.6
126.6
126.7
126.9
128.2
127.9
127.5
128.1
70.3
71.7
74.0
75.3
80.8
82.3
80.5
81.4
80.5
80.9
80.3
80.1
80.1
80.1
80.1
79.5
80.7
79.9
80.3
79.4
79.8
78.9
80.0
79.1
Capacity utilization (percent) 2
Manufacturing
9
Industrial materials industries
10
11
Construction contracts (1977 = 100)3
111.0
137.0
149.0
162.0
161.0
162.0
142.0
164.0
163.0
166.0
169.0
160.0
12
13
14
15
16
17
18
19
20
21
Nonagricultural employment, total 4
Goods-producing, total
Manufacturing, total
Manufacturing, production-worker . . .
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable personal income 5
Retail sales (1977 = 100)6
136.1
102.2
96.6
89.1
154.7
423.9'
371.5 R
286.4'
164.C
148.1
137.1
100.1
94.8
87.9
157.3
450.2'
392.5'
296.3'
175.8'
162.0
143.6
106.1
99.8
94.0
164.1
494.C
429.7'
327.3'
193.6'
179.0
147.3
107.5
100.4
93.0
169.1
517.2'
452.2'
339.3'
197.6'
185.7
147.6
107.6
100.1
92.6
169.5
522.C
454.4'
338.5'
203.6'
191.5
148.0
107.5
99.9
92.3
170.3
519.2'
455.9'
339.3'
207.2'
190.7
148.1
107.3
99.7
92.0
170.5
520.7'
458.7'
339.9'
202.1'
188.8
148.5
107.2
99.5
91.8
171.1
522.2'
459.(K
339.7'
202.7'
189.9
148.9
107.3
99.6
91.9
171.7
523.1
461.2
341.2
202.8
194.2
149.3
107.1
99.1
91.5
172.4
525.4
464.0
341.8
203.5
198.4
149.8
107.5
99.5
91.8
173.0
528.0
465.4
342.6
204.6
190.1
150.1
107.6
99.6
92.1
173.4
530.9
467.9
343.8
205.7
192.3
22
23
Prices 7
Consumer
Producer finished goods
289.1
280.7
298.4
285.2
311.1
291.1
318.8
292.1
320.1
293.1
321.3
294.1
322.3
294.(K
322.8
294.8
323.5
293.5
324.5
290.2
325.5
294.8
326.6
296.7
1. A major revision of the industrial production index and the capacity
utilization rates was released in July 1985. See "A Revision of the Index of
Industrial Production" and accompanying tables that contain revised indexes
( 1 9 7 7 = 1 0 0 ) t h r o u g h D e c e m b e r 1984 in t h e FEDERAL RESERVE BULLETIN, v o l . 71
(July 1985), pp. 487-501. The revised indexes for January through June 1985 were
shown in the September BULLETIN.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, Department of Commerce, and other sources.
3. Index of dollar value of total construction contracts, including residential,
nonresidential and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
5. Based on data in Survey of Current Business (U.S. Department of Commerce).
6. Based on Bureau of Census data published in Survey of Current Business.
1. Data without seasonal adjustment, as published in Monthly Labor Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5, and 6,
and indexes for series mentioned in notes 3 and 7 may also be found in the Survey
of Current Business.
Figures for industrial production for the last two months are preliminary and
estimated, respectively.
Selected
Measures
A45
2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1985
Category
1982
1983
1984
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
HOUSEHOLD SURVEY DATA
1 Noninstitutional population1
174,450
176,414
178,602
180,024
180,171
180,322
180,492
180,657
180,831
181,011
181,186
2 Labor force (including Armed Forces) 1
3 Civilian labor force
112,383
110,204
113,749
111,550
115,763
113,544
117,596
115,371
117,600
115,373
117,009
114,783
117,543
115,314
117,551
115,299
118,077
115,818
118,400
116,159
118,313
116,067
96,125
3,401
97,450
3,383
101,685
3,321
103,517
3,428
103,648
3,312
103,232
3,138
103,737
3,126
104,080
3,092
104,568
2,976
104,841
3,026
104,920
3,008
10,678
9.7
62,067
10,717
9.6
62,665
8,539
7.5
62,839
8,426
7.3
62,428
8,413
7.3
62,571
8,413
7.3
63,313
8,451
7.3
62,949
8,127
7.0
63,106
8,274
7.1
62,754
8,291
7.1
62,611
8,140
7.0
62,873
89,566
90,196
94,461
97,120
97,421
97,473
97,707
97,977
98,217'
98,571'
98,753
18,781
1,128
3,905
5,082
20,457
5,341
19,036
15,837
18,434
952
3,948
4,954
20,881
5,468
19,694
15,870
19,412
974
4,345
5,171
22,134
5,682
20,761
15,987
19,467
982
4,641
5,278
23,013
5,858
5,278
16,158
19,426
982
4,658
5,301
23,140
5,888
5,270
16,213
19,398
974
4,638
5,295
23,193
5,906
5,276
16,213
19,351
969
4,660
5,302
23,226
5,932
5,284
16,341
19,362
965
4,688
5,282
23,305
5,959
5,314
16,343
19,279'
962'
4,721'
5,317'
23,344'
5,987'
5,338
16,452'
19,342'
958
4,745'
5,326'
23,438'
6,008'
5,356
16,509'
19,372
951
4,750
5,350
23,416
6,040
5,376
16,508
Nonagricultural industries 2
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
Trade
Finance
Service
Government
1. Persons 16 years of age and over. Monthly figures, which are based on
sample data, relate to the calendar week that contains the 12th day ; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the March 1984
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A46
2.12
Domestic Nonfinancial Statistics • February 1986
O U T P U T , C A P A C I T Y , A N D CAPACITY U T I L I Z A T I O N
Seasonally adjusted
1985
1984
Q4
Ql
Q2
1984
Q3'
Output (1977 = 100)
Q4
1985
Ql
Q2
1984
Q3
Capacity (percent of 1977 output)
1985
Q4
Ql
Q2'
Q3'
Utilization rate (percent)
1 Total industry
123.1
123.8
124.2
124.8
151.7
152.8
154.0
155.1
81.2
81.0
80.7
80.5
2 Mining
3 Utilities
108.3
111.1
110.1
114.2
110.0
113.6
108.2
111.4
133.1
133.0
133.4
133.7
133.6
134.5
133.9
135.4
81.3
83.5
82.6
85.5
82.3
84.4
80.8
82.3
4 Manufacturing
125.8
126.0
126.6
127.7
155.2
156.5
157.7
158.9
81.0
80.5
80.3
80.3
5 Primary processing . . .
6 Advanced processing
107.0
137.0
107.5
137.1
108.1
137.9
109.5
138.7
131.4
169.6
131.6
171.4
132.0
173.2
132.4
174.9
81.5
80.8
81.6
80.0
81.9
79.6
82.7
79.3
7 Materials
114.5
115.4
114.5
114.1
140.7
141.6
142.5
143.4
81.4
81.5
80.4
79.6
8 Durable goods
9 Metal materials . . . .
10 Nondurable goods
11 Textile, paper, and chemical..
Paper
12
13
Chemical
123.7
80.4
110.9
110.7
126.2
110.9
123.6
80.6
110.9
111.6
126.3
113.2
121.4
80.2
111.2
111.0
121.8
112.6
120.7
79.4
113.6
114.1
123.8
114.6
154.4
117.8
136.8
136.2
135.3
141.1
155.9
117.3
137.3
136.7
136.1
141.5
157.4
117.3
137.8
137.0
136.2
142.0
158.9
117.3
138.2
137.4
136.3
142.6
80.1
68.2
81.0
81.3
93.3
78.6
79.3
68.7
80.7
81.7
92.8
80.0
77.1
68.4
80.7
81.0
89.4
79.3
76.0
67.7
82.2
83.0
90.8
80.4
14 Energy materials
101.3
105.0
105.2
103.0
119.7
120.0
120.3
120.6
84.6
87.5
87.5
85.4
Previous cycle 1
High
Low
Latest cycle 2
1984
High
Nov.
Low
1985
Mar.
Apr.
May
June
July
Aug/
Sept/
Oct/
Nov.
Capacity utilization rate (percent)
15 Total industry
88.6
72.1
86.9
69.5
81.3
81.0
80.8
80.6
80.5
80.2
80.7
80.4
79.9
80.1
16 Mining
17 Utilities
92.8
95.6
87.8
82.9
95.2
88.5
76.9
78.0
81.7
84.3
82.8
85.0
82.1
84.6
82.2
84.5
82.7
84.1
81.2
81.9
80.9
81.5
80.4
83.4
79.1
83.4
78.7
83.6
80.5
80.3
80.1
80.1
80.7
80.3
79.8
80.0
81.5
79.8
82.0
79.3
82.3
79.1
82.9
79.6
82.9
79.1
83.1
78.2
83.4
78.5
18 Manufacturing
87.7
69.9
86.5
68.0
81.2
80.5
19 Primary processing . . .
20 Advanced processing .
91.9
86.0
68.3
71.1
89.1
85.1
65.1
69.5
81.7
80.9
81.8
79.8
82.1
79.7
21 Materials
92.0
70.5
89.1
68.4
81.5
81.4
80.9
80.1
80.1
79.5
79.9
79.4
78.9
79.1
22 Durable goods
23 Metal materials
91.8
99.2
64.4
67.1
89.8
93.6
60.9
45.7
80.2
68.6
78.9
69.8
78.3
69.9
76.6
66.2
76.5
69.0
75.8
66.4
76.6
69.4
75.4
67.3
75.0
69.4
75.3
70.7
24 Nondurable goods . . . .
25 Textile, paper, and
chemical
Paper
26
27
Chemical
91.1
66.7
88.1
70.6
80.9
80.2
80.2
80.8
81.0
81.7
82.1
82.8
82.3
82.3
92.8
98.4
92.5
64.8
70.6
64.4
89.4
97.3
87.9
68.6
79.9
63.3
81.1
92.5
78.8
81.4
92.1
79.5
80.7
89.1
79.2
80.9
88.8
79.5
81.4
90.5
79.2
82.7
91.7
80.1
82.8
90.1
79.8
83.6
90.7
81.2
82.9
88.5
81.1
83.0
89.8
80.7
28 Energy materials
94.6
86.9
94.0
82.2
84.8
88.4
87.6
87.5
87.3
85.8
85.1
85.2
84.5
84.7
1. Monthly high 1973; monthlv 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
2.13 INDUSTRIAL PRODUCTION
Measures
A47
Indexes and Gross Value A
Monthly data are seasonally adjusted
Grouping
1977
proportion
1984
avg.
1985
1984
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.''
Nov. e
Index (1977 = 100)
MAJOR MARKET
100.00
121.8
123.4
123.3
123.6
123.7
124.0
124.1
124.1
124.3
124.1
125.2
125.0
124.6
125.1
57.72
44.77
25.52
19.25
127.1
127.8
118.2
140.5
129.9
130.7
119.6
145.5
129.8
130.6
119.7
144.9
129.6
130.4
118.8
145.7
129.8
130.4
119.1
145.3
130.3
130.8
119.8
145.4
130.8
131.3
119.5
146.9
131.4
131.7
120.0
147.1
131.6
131.6
120.4
146.6
131.6
131.8
120.1
147.3
133.0
133.3
121.5
149.0
133.1
133.3
121.7
148.6
132.5
132.6
121.1
147.7
133.1
133.2
121.7
148.5
12.94
42.28
124.9
114.6
127.2
114.6
127.3
114.6
126.8
115.4
127.7
115.4
128.6
115.5
129.3
115.0
130.3
114.2
131.4
114.3
130.7
113.8
132.0
114.5
132.5
114.1
132.5
113.6
132.6
114.2
6.89
2.98
1.79
1.16
.63
1.19
3.91
1.24
1.19
.96
1.71
112.6
109.8
103.0
93.2
121.2
120.1
114.8
136.2
137.5
117.6
97.8
113.3
110.2
103.1
89.7
127.8
121.1
115.8
137.4
138.4
118.1
99.0
113.1
111.6
104.7
95.6
121.5
122.1
114.3
137.2
138.2
114.1
97.9
112.8
114.2
112.5
102.5
131.1
116.8
111.6
126.1
126.6
112.7
100.6
112.8
115.4
111.7
100.7
132.0
121.1
110.9
127.1
127.2
117.9
95.1
113.5
115.1
110.5
101.3
127.5
122.0
112.2
131.8
131.8
117.7
95.0
111.5
113.1
109.0
100.5
124.7
119.4
110.2
126.9
127.1
118.1
93.7
111.8
113.6
109.6
98.1
130.9
119.6
110.4
129.3
128.7
116.9
93.1
112.0
113.4
109.4
97.0
132.3
119.4
110.9
131.5
131.7
119.6
91.2
111.3
115.0
113.7
101.1
137.2
116.8
108.4
121.6
123.2
122.2
91.2
114.0
120.0
120.2
101.3
155.4
119.6
109.5
124.5
125.5
119.5
93.0
112.9
117.8
116.6
98.8
149.7
119.5
109.3
123.7
125.6
120.2
92.7
111.6
113.1
108.7
92.3
139.1
119.8
110.4
124.3
126.6
120.4
94.7
113.1
115.7
112.7
93.9
18.63
15.29
7.80
7.49
2.75
1.88
2.86
1.44
1.42
120.2
125.0
126.2
123.9
137.4
138.4
101.4
89.3
113.7
121.8
127.4
127.6
127.5
143.3
141.5
103.0
89.9
116.3
122.1
127.7
129.1
126.5
142.7
141.8
100.7
87.7
113.9
121.1
126.6
127.1
126.0
142.9
141.2
99.9
85.1
115.0
121.4
126.9
127.8
126.0
143.2
138.1
101.5
84.9
118.4
122.1
127.9
128.0
127.7
145.1
141.7
101.9
87.0
117.1
122.5
128.5
129.4
127.6
145.1
142.0
101.5
90.0
113.2
123.1
129.0
128.9
129.1
147.3
143.7
102.1
90.2
114.4
123.5
129.6
130.5
128.7
145.4
144.6
102.2
88.8
115.9
123.4
129.3
130.1
128.5
145.4
144.9
101.5
89.2
114.0
124.2
130.3
130.8
129.7
149.1
143.9
101.8
91.1
112.7
124.9
130.8
131.2
130.4
151.8
144.7
100.5
84.8
116.5
124.6
130.6
130.0
131.2
151.7
144.4
102.8
89.2
Transit
Defense and space equipment
18.01
14.34
2.08
3.27
1.27
5.22
2.49
3.67
139.6
134.9
66.6
109.4
79.2
209.2
98.6
157.9
144.6
139.8
68.2
112.4
83.8
217.1
102.9
163.3
143.9
138.4
68.5
111.5
84.5
214.5
100.9
165.3
145.5
140.4
68.8
111.6
82.5
217.4
106.7
165.3
145.6
140.0
68.3
112.3
81.8
217.0
104.9
167.3
146.1
140.2
67.1
112.0
79.6
218.9
104.5
169.0
147.7
142.0
68.4
112.4
81.8
221.8
106.0
170.1
147.9
141.9
67.4
113.1
82.8
222.8
102.9
171.2
147.4
140.7
67.7
111.9
84.1
219.6
103.4
173.4
147.9
141.3
68.6
113.5
85.6
219.5
103.3
173.9
149.7
143.0
67.2
115.1
84.5
222.8
106.0
175.5
149.3
142.1
67.0
114.8
85.1
219.3
108.3
177.5
148.8
141.1
66.8
113.9
85.9
216.3
109.6
178.7
36
37
38
39
114.0
134.2
137.9
118.0
115.7
137.1
140.9
120.4
114.7
138.0
141.4
122.9
116.2
135.9
140.2
117.1
115.7
137.9
141.1
124.1
116.9
138.6
141.9
124.5
117.4
139.4
143.4
122.4
118.1
140.7
144.4
124.6
119.2
141.7
146.1
122.7
119.4
140.3
144.4
122.7
121.5
140.9
145.1
122.5
121.5
141.9
145.7
125.7
121.1
142.3
145.4
128.6
120.8
Commercial energy products
5.95
6.99
5.67
1.31
40
41
4?
43
44
Equipment parts
Durable materials n.e.c
Basic metal materials
20.50
4.92
5.94
9.64
4.64
122.3
98.0
164.5
108.6
86.4
123.9
99.1
169.1
108.7
85.2
123.4
99.8
168.8
107.4
84.0
124.2
102.6
166.7
109.1
83.5
123.3
102.2
164.2
109.0
84.1
123.3
102.1
163.3
109.6
85.1
122.8
101.8
161.1
110.0
86.6
120.7
100.1
157.8
108.2
82.0
120.8
98.7
157.3
109.6
85.0
120.2
98.3
157.0
108.6
82.5
121.8
100.0
158.7
110.2
85.1
120.2
99.0
156.5
108.7
82.8
120.0
97.4
155.3
109.8
85.5
120.8
100.4
155.0
110.2
1
Total index
?
Final products
4
5
Equipment
6
7 Materials
Consumer goods
8 Durable consumer goods
9
10
11
1?
N
Auto parts and allied goods
14
15
Appliances, A/C and TV
16
Carpeting and furniture
17
Miscellaneous home goods
18
19
70
?1
??
73
74
75
76
27
Consumer chemical products . . . .
Consumer paper products
Consumer energy
Residential utilities
Equipment
78
29
30
31
Business equipment
Construction, mining, and farm . . . .
Manufacturing
V
33
34
35
45 Nondurable goods materials
46
47
48
49
50
Miscellaneous nondurable materials ..
51
5?
53
Primary energy
Converted fuel materials
120.2
111.2
126.5
124.8
130.6
131.7
149.9
141.9
114.3
86.3
217.2
111.6
181.5
10.09
111.2
110.7
110.7
110.9
111.4
110.3
110.4
111.3
111.8
112.8
113.5
114.5
114.0
114.2
7.53
1.52
1.55
4.46
2.57
111.6
101.5
126.5
109.9
109.8
110.5
93.7
125.1
111.1
111.1
110.1
91.2
127.2
110.6
112.1
111.5
90.3
127.5
113.3
109.2
112.1
93.5
126.0
113.5
109.4
111.3
93.0
125.4
112.7
107.2
110.5
94.1
121.3
112.3
110.1
110.9
95.0
120.9
112.9
112.5
111.7
97.3
123.3
112.6
112.0
113.5
100.2
125.0
114.0
110.8
113.8
104.4
122.8
113.8
112.7
115.0
103.4
123.7
115.9
113.2
114.2
102.5
120.8
115.9
113.5
114.4
11.69
7.57
4.12
104.0
107.5
97.6
101.5
104.1
96.8
102.4
106.0
96.0
103.9
107.0
98.2
104.9
107.6
100.0
106.2
110.2
99.0
105.3
107.9
100.6
105.3
107.8
100.6
105.1
109.0
98.1
103.5
107.4
96.2
102.7
106.4
95.9
102.8
106.0
97.0
102.1
104.5
97.8
102.5
A48
Domestic Nonfinancial Statistics • February 1986
2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value—Continued
1977
Grouping
SIC
code
proportion
1984
avg.
1984
Nov.
1985
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.''
Nov
Index (1977 = 100)
MAJOR INDUSTRY
3
15.79
9.83
5.96
84.21
35.11
49.10
110.9
110.9
110.9
123.9
122.5
124.8
110.1
108.8
112.1
126.0
123.8
127.5
109.9
108.9
111.6
125.8
123.4
127.4
111.4
110.5
113.0
125.9
123.2
127.8
111.9
109.5
115.8
125.8
123.8
127.2
111.8
110.5
113.9
126.3
123.9
128.0
111.1
109.6
113.6
126.6
124.3
128.2
111.3
109.8
113.7
126.6
124.7
127.9
111.6
110.6
113.4
126.7
125.5
127.6
109.4
108.7
110.7
126.9
125.6
127.9
109.1
108.3
110.3
128.2
126.6
129.4
109.8
107.7
113.2
127.9
127.0
128.5
108.8
106.0
113.4
127.5
127.0
127.9
108.8
105.6
114.0
128.1
127.1
128.9
10
11.12
13
14
.50
1.60
7.07
.66
77.0
127.6
109.1
116.1
75.5
113.1
109.8
115.3
69.3
116.2
109.8
113.2
70.5
118.5
110.7
118.5
74.5
121.5
108.2
119.8
83.6
131.9
106.8
118.7
81.2
128.5
106.5
118.5
78.3
128.7
106.9
118.7
77.5
134.0
106.9
117.9
60.9
128.0
106.9
116.6
73.1
127.7
105.5
117.7
71.4
126.3
105.1
117.9
73.1
118.9
104.2
118.1
123.0
102.6
Utilities
Mining
7 Metal
8 Coal
10 Stone and earth minerals
11
12
13
14
15
Nondurable manufactures
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
20
21
22
23
26
7.96
.62
2.29
2.79
3.15
127.1
100.7
103.7
102.8
127.3
128.7
102.7
97.1
101.1
127.7
129.0
107.4
94.7
102.5
128.8
128.2
97.2
93.6
102.6
128.3
129.4
103.8
98.5
103.1
126.4
128.5
103.4
99.4
101.3
126.9
130.8
98.4
99.0
100.2
125.1
131.4
95.7
100.0
100.3
124.1
131.8
98.9
103.3
99.2
127.1
132.2
96.0
104.1
100.6
129.0
132.6
97.7
106.3
100.4
127.5
132.8
97.8
106.7
101.8
128.6
132.0
97.6
106.0
102.3
128.0
16
17
18
19
20
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products
Leather and products
27
28
29
30
31
4.54
8.05
2.40
2.80
.53
147.9
121.7
87.4
143.2
76.7
153.5
124.3
86.2
146.6
71.5
151.2
123.4
84.7
146.6
71.4
150.4
125.7
84.1
145.9
69.1
150.3
125.8
84.0
145.7
69.2
152.6
126.5
84.7
144.1
69.4
154.2
125.8
87.3
144.9
69.9
155.4
126.7
87.4
144.3
71.0
156.7
126.4
87.1
145.5
71.5
154.3
126.4
88.3
145.6
72.2
156.3
128.2
88.2
148.0
72.7
155.9
129.5
85.9
148.6
73.3
156.3
129.5
88.3
148.6
71.5
24
25
32
2.30
1.27
2.72
109.1
136.7
112.3
109.5
139.8
113.6
109.4
138.0
111.8
109.2
136.5
112.7
109.1
139.0
110.5
109.5
139.2
111.4
110.9
141.0
114.5
112.2
142.0
116.3
113.5
141.9
116.1
113.0
145.3
115.1
114.8
144.3
116.2
115.9
144.2
116.7
143.4
115.6
33
331.2
34
35
36
5.33
3.49
6.46
9.54
7.15
82.4
73.5
102.8
142.0
172.4
80.9
71.1
105.4
145.8
178.9
78.4
68.9
105.9
144.6
180.2
81.7
71.0
106.4
145.0
176.0
80.2
68.5
107.6
144.9
173.2
81.8
73.2
108.6
146.5
173.1
81.4
71.9
109.1
148.9
168.9
76.4
65.4
108.3
149.1
169.3
78.3
67.6
107.4
145.6
169.5
79.0
68.7
107.3
147.5
165.7
82.0
71.6
107.8
149.2
166.1
80.3
69.7
107.5
147.4
165.1
83.2
74.6
108.0
144.6
165.5
108.2
144.8
166.3
37
371
9.13
5.25
113.6
105.6
116.0
107.5
117.8
109.5
120.4
113.0
120.5
112.5
120.8
111.3
120.7
110.9
120.9
110.5
121.8
110.5
123.7
112.8
126.8
116.8
126.2
115.3
123.5
110.0
126.7
113.9
372-6.9
38
39
3.87
2.66
1.46
124.4
136.9
98.0
127.5
138.6
98.6
129.0
138.9
97.2
130.5
138.7
99.0
131.4
138.7
96.4
133.7
139.0
96.0
134.1
138.5
98.3
134.9
139.9
98.3
137.1
140.7
96.8
138.5
141.1
95.9
140.4
141.8
97.2
141.1
138.9
96.4
141.8
138.0
97.5
144.2
139.4
4.17
116.8
118.7
117.5
118.9
121.9
119.5
119.1
119.5
119.4
117.5
116.7
120.6
120.5
121.2
Durable manufactures
21 Lumber and products
23 Clay, glass, stone products
24 Primary metals
26 Fabricated metal products
27 Nonelectrical machinery
28 Electrical machinery
29 Transportation equipment
30 Motor vehicles and parts
31 Aerospace and miscellaneous
33 Miscellaneous manufactures
156.5
88.6
84.7
Gross value (billions of 1972 dollars, annual rates)
MAJOR MARKET
35
36
37
38
39
596.0
472.7
309.2
163.5
123.3
745.6
593.7
356.5
237.6
151.8
759.2
605.2
359.0
246.7
154.0
756.5
601.8
360.0
242.3
154.6
• A major revision of the industrial production index and the capacity
utilization rates was released in July 1985. See " A Revision of the Index of
Industrial Production" and accompanying tables that contain revised indexes
( 1 9 7 7 = 1 0 0 ) t h r o u g h D e c e m b e r 1984 in t h e FEDERAL RESERVE BULLETIN, v o l . 71
761.3
606.5
358.8
247.6
154.9
764.2
608.7
360.9
247.8
155.5
769.5
613.3
364.6
248.7
156.3
773.3
616.2
364.7
251.4
157.1
774.4
773.4
616.2
365.1
251.1
158.2
613.9
364.0
249.9
159.5
769.0
778.7
777.6
776.0
778.0
610.1
361.7
248.4
158.9
618.6
366.2
252.4
160.1
617.3
365.2
252.1
160.3
615.4
364.2
251.3
160.6
617.4
365.4
252.0
160.6
(July 1985), pp. 487-501. The revised indexes for January through June 1985 were
shown in the September BULLETIN.
NOTE. These data also appear in the Board's G. 12.3 (414) release. For address,
see inside front cover.
Selected Measures
A49
2.14 HOUSING AND CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1985
1983
Item
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.'
Sept.'
Oct.
Private residential real estate activity (thousands of units)
NEW UNITS
1 Permits authorized
2
1-family
3 2-or-more-family
1,000
546
454
1,605
902
703
1,682
922
759
1,635
903
732
1,624
927
697
1,741
993
748
1,704
948
756
1,778
933
845
1,712
961
751
1,694
967
727
1,784
990
794
1,808
949
859
1,688
%5
723
4 Started
1-family
6
2-or-more-family
1,062
663
400
1,703
1,067
635
1,749
1,084
665
1,603'
1,060
789
1,662'
1,135
512
1,785'
1,168
721
1,824'
1,155
778
1,883'
1,039
642
1,834'
1,031
670
1,976'
1,062
601
1,945
1,059
681
2,052
975
641
2,042
1,125
636
720
400
320
1,003
524
479
1,051
556
494
1,071
572
499
1,066
580
485
1,063
578
485
1,088
583
505
1,089
582
507
1,075
575
500
1,073
578
495
1,084
583
502
1,063
567
495
1,090
579
512
1,005
631
374
1,390
924
466
1,652
1,025
627
1,719
1,107
612
1,794
1,082
712
1,685
1,043
642
1,641
1,074
567
1,627
1,020
607
1,789
1,097
692
1,725
1,048
677
1,721
1,019
702
1,7%
1,110
686
1,521
1,054
467
13 Mobile homes shipped
240
296
295
273
276
283
287
287
270
286
290
278
298
Merchant builder activity in 1-family units
14 Number sold
15 Number for sale, end of period 1
413
255
622
304
639
358
634
356
676
360
699
357
649
356
682
356
710
354
748'
351'
708
348
676
350
623
355
69.3
75.5
80.0
82.5
82.0
84.2
85.6
80.1
86.3
82.1'
83.3
84.7
85.5
83.8
89.9
97.5
98.3
96.2
100.9
104.7
98.1
99.6
99.4'
99.2
103.2
102.4
1,991
2,719
2,868
3,000
2,880
3,030
3,040
3,040
3,060
3,140
3,500
3,450
3,550
67.7
80.4
69.8
82.5
72.3
85.9
73.8
87.7
73.5
87.2
74.2
88.6
74.5
89.7
75.0
90.1
76.2
91.5
77.4
93.5
76.9
93.0
75.5
91.1
74.8
90.8
7 Under construction, end of period 1
8
1-family
9
2-or-more-family
10 Completed
1-family
11
12 2-or-more-family
16
17
Price (thousands of dollars)2
Median
Units sold
Units sold
EXISTING UNITS ( 1 - f a m i l y )
18 Number sold
Price of units sold (thousands of dollars)2
19 Median
20 Average
Value of new construction 3 (millions of dollars)
CONSTRUCTION
21 Total put in place
236,935 268,730 312,989 341,038 334,254 333,723 341,861 339,943 343,837
344,206' 343,246 346,084
346,290
?? Private
73
Residential
24
Nonresidential, total
Buildings
75
Industrial
26
Commercial
27
Other
28
Public utilities and other
186,091 218,016 257,802 283,688 276,452 274,575 281,988 276,420 278,939
80,609 121,309 145,058 155,260 146,042 146,195 146,539 142,254 147,158
105,482 96,707 112,744 128,428 130,410 128,380 135,449 134,166 131,781
279,521' 279,371 282,505
148,699' 146,858 148,915
130,822' 132,513 133,590
282,683
150,5%
132,087
29 Public
30 Military
31
Highway
32
Conservation and development
33
Other
17,346
37,281
10,507
40,348
12,863
35,787
11,660
36,397
13,746
48,102
12,298
38,598
15,195
58,524
11,889
42,820
15,815
58,922
12,054
43,619
14,585
59,382
11,245
43,168
17,283
61,219
12,663
44,284
16,443
60,064
12,929
44,730
15,170
58,290
12,786
45,535
15,384'
57,956
12,578
44,904'
15,118
59,910
12,957
44,528
15,567
61,227
12,769
44,027
15,429
60,820
12,249
43,589
50,843
2,205
13,293
5,029
30,316
50,715
2,544
14,143
4,822
29,206
55,186
2,839
16,295
4,656
31,396
57,350
2,969
17,759
4,645
31,977
57,802
3,036
18,416
4,674
31,676
59,148
3,078
19,176
4,727
32,167
59,873
3,166
19,920
4,393
32,394
63,523
3,349
22,314
5,051
32,809
64,897
3,426
21,093
5,410
34,968
64,686'
3,364
19,589
5,075
36,658'
63,875
2,966
20,224
4,824
35,861
63,580
3,008
19,585
5,254
35,733
63,606
3,354
19,180
4,921
36,151
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
Domestic Nonfinancial Statistics • February 1986
2.15 CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Change from 3 months earlier
(at annual rate)
Change from 1 month earlier
Index
level
Nov.
Item
1984
1984
1985
Nov.
Nov.
Dec.
Mar.
June
1985
(1967
= 100) 1
1985
1985
Sept.
July
Aug.
Sept.
Oct.
Nov.
CONSUMER PRICES2
1
All items
2
3
4
5
6
Food
Energy items
All items less food and energy
Commodities
Services
4.0
3.6
3.0
4.1
3.3
2.3
.2
.2
.2
.3
.6
326.6
4.0
.5
4.7
3.3
5.5
2.3
.8
4.4
2.2
5.7
3.7
-.7
3.5
.9
5.0
2.6
-.8
5.5
6.6
5.0
-.9
9.6
3.4
-1.4
6.4
1.8
-4.3
3.5
.8
5.0
.1
-.3
.3
-.2
.5
.0
-.6
.3
.1
.5
.3
-.2
.2
.3
.2
.2
-.8
.5
.4
.6
.7
.9
.4
.2
.6
311.0
425.1
320.4
262.7
384.8
1.9
3.9
-3.8
2.3
2.2
1.5
.0
-2.0
2.8
2.5
1.1
3.3
5.6
-.2
-1.1
.5
-3.0
-21.3
6.5
6.2
1.7
-8.1
27.3
1.4
1.6
-2.4
-1.6
-12.8
-.2
-1.2
.3
— 1.5'
.5'
.1
-.3
-.5'
-1.7'
.0
.2
-.6
-.9
-.1
-.5
-.6
.9
1.4
-.2
.8
1.0
.8
1.6
3.1
.1
.1
296.7
272.0
732.9
255.1
303.8
1.9
2.4
-.5
-.2
1.2
1.5
-2.5
-1.0
1.1
1.2
-1.2
-1.2
-.3
-.1
-.1
-.1
.1
-.1
.0
.0
.2
.0
324.5
304.2
.4
-.4
-1.8
-6.4
-4.6
-4.1
10.6
-7.6
-10.7
-24.9
-13.1
-13.3
-20.4
4.4
3.1
-19.9
-4.7
-4.2
-1.1'
-.3'
.8
-3.6r
-1.4'
-1.2
-.7
.4
-.6
6.3
-.3
.5
5.8
-.1
-.2
236.7
742.9
244.9
PRODUCER PRICES
7
8
9
10
11
Finished goods
Consumer foods
Consumer energy
Other consumer goods
Capital equipment
12
13
Intermediate materials 3
Excluding energy
14
15
16
Crude materials
Foods
Energy
Other
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers and reflect a
rental equivalence measure of homeownership after 1982.
l.(K
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.
Selected
Measures
A51
2.16 GROSS NATIONAL PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1985
1984
Account
1982r
1983'
1984'
Q3'
Q4'
Ql'
Q2'
Q3'
GROSS NATIONAL PRODUCT
3,166.0
3,401.6
3,774.7
3,812.2
3,852.5
3,917.5
3,960.6
4,016.9
2,050.7
252.7
771.0
1,027.0
2,229.3
289.6
817.0
1,122.7
2,423.0
331.1
872.4
1,219.6
2,439.0
331.1
876.6
1,231.3
2,480.1
341.5
883.1
1,255.4
2,525.0
351.5
895.7
1,277.8
2,563.3
356.5
910.2
1,296.6
2,606.1
376.0
914.5
1,315.6
447.3
471.8
366.7
143.3
223.4
105.1
501.9
508.3
356.3
126.1
230.2
152.0
674.0
607.0
427.9
147.6
280.2
179.1
687.9
619.5
435.9
151.3
284.5
183.7
676.2
637.2
458.1
157.2
300.9
179.1
657.6
639.1
459.6
166.1
293.5
179.4
672.8
657.3
474.2
169.7
304.5
183.1
666.1
665.9
478.5
170.4
308.1
187.4
-24.5
-23.1
-6.4
.8
67.1
58.0
68.3
62.8
39.0
36.4
18.5
14.2
15.5
10.8
.2
3.1
14 Net exports of goods and services
15 Exports
16 Imports
26.3
361.9
335.6
-5.3
354.1
359.4
-59.2
384.6
443.8
-61.9
391.4
453.3
-72.2
389.5
461.7
-42.3
379.6
421.9
-70.3
369.2
439.5
-87.8
363.2
451.0
17 Government purchases of goods and services
18 Federal
19 State and local
641.7
272.7
369.0
675.7
284.8
390.9
736.8
312.9
423.9
747.3
318.5
428.8
768.4
332.9
435.5
777.2
334.4
442.8
794.8
337.8
457.1
832.5
364.8
467.7
3,190.5
1,319.1
527.5
791.6
1,547.5
299.4
3,408.0
1,394.6
573.4
821.2
1,678.0
328.9
3,707.6
1,585.8
681.1
904.8
1,806.6
382.2
3,743.9
1,595.9
682.2
913.7
1,823.8
392.6
3,813.5
1,604.0
703.4
900.6
1,855.6
392.9
3,899.0
1,628.3
706.2
922.1
1,887.6
401.5
3,945.0
1,636.1
705.9
930.2
1,908.2
416.3
4,016.7
1,650.7
714.8
935.9
1,939.9
426.2
-24.5
-16.8
-7.7
-6.4
-.8
-5.5
67.1
37.0
30.1
68.3
39.4
28.9
39.0
29.3
9.7
18.5
16.9
1.6
15.5
1.8
13.7
.2
-6.4
6.6
3,166.0
3,275.2
3,492.0
3,510.4
3,515.6
3,547.8
3,557.4
3,584.1
30 Total
2,518.4
2,718.3
3,039.3
3,064.2
3,104.4
3,155.3
3,192.2
3,228.0
31 Compensation of employees
32 Wages and salaries
Government and government enterprises
33
34
Other
35 Supplement to wages and salaries
Employer contributions for social insurance
36
Other labor income
37
1,907.0
1,586.1
305.9
1,280.2
320.9
157.3
163.6
2,025.9
1,675.4
324.2
1,351.6
350.5
171.0
179.5
2,221.3
1,835.2
346.1
1,488.9
386.2
192.8
193.4
2,241.2
1,852.8
349.2
1,503.7
388.4
194.0
194.4
2,278.5
1,884.4
354.7
1,529.8
394.0
196.8
197.2
2,320.4
1,917.7
362.6
1,555.1
402.7
201.8
200.9
2,356.9
1,947.6
367.4
1,580.2
409.4
204.6
204.8
2,385.2
1,970.1
372.6
1,597.5
415.1
206.7
208.4
175.5
150.9
24.6
192.3
178.0
14.3
233.7
201.6
32.1
232.3
204.5
27.8
232.9
206.3
26.6
239.4
212.9
26.5
240.9
218.1
22.8
237.5
225.3
12.2
1 Total
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
2
3
4
5
6 Gross private domestic investment
7 Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures
12
13
Change in business inventories
Nonfarm
By major type of product
70 Final sales, total
21
Goods
Durable
7.7.
73
Nondurable
7.4 Services
25
Structures
26 Change in business inventories
27 Durable goods
28 Nondurable goods
29 MEMO: Total GNP in 1982 dollars
NATIONAL INCOME
38 Proprietors' income 1
39 Business
and professional 1
Farm 1
40
41 Rental income of persons 2
13.6
12.8
10.8
10.0
9.7
11.0
13.8
14.5
42 Corporate profits
43 Profits before tax 3
Inventory valuation adjustment
44
45 Capital consumption adjustment
150.0
169.6
-10.4
-9.2
213.8
205.0
-10.0
18.8
273.3
237.6
-5.4
41.0
271.2
227.7
-1.3
44.8
276.2
228.0
-1.6
49.8
281.7
220.0
.7
61.1
288.1
218.7
2.2
67.2
309.1
228.6
4.7
75.9
46 Net interest
272.3
273.6
300.2
309.5
307.0
302.9
292.4
281.8
1
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).
A52
Domestic Nonfinancial Statistics • February 1986
2.17 PERSONAL INCOME AND SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1985
Account
1982'
1984'
1983'
Q3'
Q4'
QL'
Q2'
PERSONAL INCOME AND SAVING
1 Total personal income
2,670.8
2,836.4
3,111.9
3,144.2
3,186.2
3,240.9
3,280.1
2 Wage and salary disbursements
3
Commodity-producing industries
4
Manufactunng
5
Distributive industries
6
Service industries
7
Government and government enterprises
1,586.1
511.7
384.0
384.2
384.4
305.9
1,675.8
523.0
397.4
404.2
424.4
324.2
1,834.9
577.9
438.9
441.6
469.4
346.1
1,852.9
583.2
442.6
446.1
474.4
349.2
1,883.9
591.2
449.0
453.0
485.5
354.1
1,917.6
600.1
453.5
459.8
495.2
362.5
1.948.6
604.7
454.9
467.4
508.1
368.4
163.6
175.5
150.9
24.6
13.6
63.9
369.7
410.6
204.5
179.5
192.3
178.0
14.3
193.4
233.7
204.8
240.9
12.8
10.8
74.6
442.2
454.7
235.7
197.2
232.9
206.3
26.6
9.7
76.9
461.3
459.2
200.9
239.4
212.9
26.5
68.0
385.7
442.2
221.7
194.4
232.3
204.5
27.8
10.0
75.3
456.8
456.0
236.0
112.3
119.8
132.4
133.4
2,670.8
2,836.4
3,111.9
3,144.2
409.3
411.1
441.8
447.5
8
9
10
11
12
13
14
15
16
17
Other labor income
Proprietors' income 1
Business and professional 1
Farm 1
Rental income of persons 2
Dividends
Personal interest income
Transfer payments
O l d - a g e survivors, disability, and health insurance benefits..
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
19
LESS: Personal tax and nontax payments
201.6
32.1
241.8
134.9
3,186.2
462.4
11.0
77.9
462.8
477.6
249.2
218.1
22.8
13.8
78.7
460.5
481.0
250.7
146.3
148.3
3,240.9
3,280.1
501.7
462.4
2,739.2
2.817.7
2,608.4
2,650.6
130.9
167.2
14,915.5
9,658.1
10,617.0
5.9
20 EQUALS: Disposable personal income
2.261.4
2,425.4
2,670.2
2,696.7
21
LESS: Personal outlays
2.107.5
2,292.2
2,497.7
2,515.2
22 EQUALS: Personal saving
153.9
133.2
172.5
181.5
13,624.4
8,824.9
9,732.0
6.8
13,962.0
9,147.9
9,952.0
5.5
14,750.9
9,461.8
10,427.0
6.5
14,811.9
9,465.9
10,466.0
6.7
14,797.2
9,520.8
10,457.0
6.0
14,902.6
9,613.3
10,429.0
4.8
27 Gross saving.
446.4
469.8
584.5
592.8
573.5
578.3
571.7
28
29
30
31
557.1
153.9
-10.4
-10.0
693.0
172.5
101.6
-5.4
708.8
181.5
104.9
-1.3
700.3
164.5
108.2
-1.6
677.7
130.9
116.3
.7
723.6
167.2
20.0
600.6
133.2
67.9
235.0
148.2
.0
245.0
154.6
.0
256.6
162.3
.0
258.5
164.0
.0
261.8
264.3
166.3
266.8
167.0
.0
-110.8
-130.8
-179.4
48.6
-108.5
-172.9
64.4
-116.0
-178.1
-126.8
-99.4
-151.9
-209.1
57.3
2,723.8
2,559.4
164.5
MEMO
Per capita (1982 dollars)
23
Gross national product
24
Personal consumption expenditures
25
Disposable personal income
26 Saving rate (percent)
GROSS SAVING
Gross private saving
Personal saving
Undistributed corporate profits 1
Corporate inventory valuation adjustment
Capital consumption
allowances
32 Corporate
33 Noncorporate
34 Wage accruals less disbursements
35 Government surplus, or deficit ( - ) , national income and
product accounts
36
Federal
37
State and local
-145.9
35.1
62.1
165.9
.0
-192.7
65.8
.0
-162.6
63.2
122.6
2.2
.0
.0
.0
.0
.0
.0
39 Gross investment
446.3
469.2
583.0
565.8
580.7
567.0
40 Gross private domestic
41 Net foreign
447.3
-1.0
501.9
-32.7
674.0
-91.0
676.2
-110.4
657.6
-76.8
672.8
-105.8
-.6
-1.5
-7.6
2.5
-4.7
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.
687.9
-94.3
SOURCE. Survey of Current Business (Department of Commerce).
Summary
3.10 U.S. INTERNATIONAL TRANSACTIONS
Statistics
A53
Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted. 1
1985
Item credits or debits
1 Balance on current account
2
Not seasonally a d j u s t e d . .
3
4
5
6
7
8
9
10
Merchandise trade balance 2 . . .
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net 3
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, - )
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
Q3
Q4
Qir
Q2
Q3P
-8,051
-45,994'
-107,358
-28,969
-32,297
-31,805
-28,982
-24,247
-23,417
-27,696
-27,927
-30,451
-34,087
-36,444
211,198
-247,642
-318
29,493
7,353
-67,2 W
201,712'
-268,928'
-163
25,401
4,837
-114,107
219,916
-334,023
-1,765
19,109
819
-28,977
55,649
-84,626
-250
3,256
-23,454
55,302
-78,756
-122
-30,885
56,242
-87,127
-575
4,003
-253
2,537
54
-28,587
53,624
-82,211
-586
5,387
-482
-33,142
52,310
-85,452
-487
7,549
-403
-2,566
-6,287
-2,891
-8,522
-669
-2,207
-782
-3,313
-934
-2,238
-843
-2,585
-849
-3,119
-6,131
-5,006
-5,516
-1,369
-734
-850
-853
-420
-4,965
-1,196
-3,130
-799
-1,109
-233
-356
-121
0
-2,633
-5,501
-212
0
0
0
0
0
0
0
-1,371
-2,552
-1,041
-66
-979
-995
-1,156
-271
-331
-197
-194
-143
-772
-264
281
-250
-180
-4,434
3,304
72
-248
-264
388
-245
-111,070
6,626
-8,102
4,425
-48,842
-29,928
-6,513
-7,007
-5,394
-11,800
-8,504
6,266
-5,059
-4,503
20,532
17,725
2,099
-1,313
-13,003
-4,933
970
-3,663
-5,377
718
135
1,201
-2,494
1,876
-1,246
4,095
1,863
-2,214
-4,990
-9,458
-1,408
n.a.
-1,787
-6,263
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 liabilities 4
26
Other U.S. liabilities reported by U.S. banks
27
Other foreign official assets 5
3,672
5,779
-694
684
-1,747
-350
5,795
6,972
-476
552
545
-1,798
3,424
4,690
167
453
663
-2,549
-686
-575
85
-139
430
-487
7,119
5,814
-67
-197
2,052
-483
-11,204
-7,219
-307
-462
-3,099
-117
8,465
8,722
136
575
-134
-834
2,415
-90
24
-95
2,954
-378
28 Change in foreign private assets in the United States
(increase, +) 3
29
U.S. bank-reported liabilities
30
U.S. nonbank-reported liabilities
31
Foreign private purchases of U.S. Treasury securities, net
32
Foreign purchases of other U.S. securities, net
33
Foreign direct investments in the United States, net 3
90,775
65,922
-2,383
7,052
6,392
13,792
78,527
49,341
93,895
31,674
4,284
22,440
12,983
22,514
3,825
-5,125
-2,939
5,058
1,603
5,228
26,191
4,481
-1,863
9,501
9,380
4,692
24,915
13,345
-2,655
2,633
9,510
2,082
17,849
195
-1,324
5,106
7,135
6,737
31,494
6,452
n.a.
7,824
11,641
5,577
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
21
U.S. direct investments abroad, net 3
34 Allocation of SDRs
35 Discrepancy
36
Owing to seasonal adjustments
37
Statistical discrepancy in recorded data before seasonal
adjustment
-108,121
-118
8,721
8,636
11,947
2,021
0
0
0
0
0
0
32,821
16,717'
30,486
7,466
-3,274
13,341
4,305
10,901
-384
3,837
-570
6,541
-3,487
32,821
16,717'
30,486
10,740
4,407
10,028
0
0
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 not calculated for lines
38—41.
2. Data are on an international accounts (IA)
basis data, shown in table 3.11, for reasons of
exports are excluded from merchandise data and
3. Includes reinvested earnings.
-4,965
-1,196
-3,130
-799
-1,110
-233
-356
-121
2,988
5,243
2,971
-547
7,316
-10,742
7,890
2,510
7,291
-8,283
-4,143
-453
812
-2,021
-1,960
585
194
190
45
61
10
15
6, 10, 12-16, 18-20, 22-34, and
basis. Differs from the Census
coverage and timing; military
are included in line 6.
4. Primarily associated with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
NOTE. Data are from Bureau of Economic Analysis, Survey of Current Business
(Department of Commerce).
A54
3.11
International Statistics • February 1986
U.S. FOREIGN TRADE
Millions of dollars; monthly data are seasonally adjusted.
1985
Item
1982
1983
1984
Apr.
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments
212,193
200,486
19,142
May
17,779
June
17,414
July
17,438
Aug.
17,411
Sept.
17,423
17,732
Oct.
17,368
2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded
warehouses
243,952
258,048
25,933
28,295
28,685
29,425
26,630
26,083
31,764
27,594
3 Trade balance
-31,759
-57,562
-6,791
-10,516
-11,271
-11,987
-9,219
-8,660
-14,032
-10,226
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
3.12
the export side, the largest adjustments are: (1) the addition of exports to Canada
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
1985
Type
1982
1983
1984
May
June
July
Aug.
Sept.
Oct.
Nov.
1 Total
33,958
33,747
34,934
35,782
36,088
37,071
37,154
38,295
41,657
42,852
2 Gold stock, including Exchange Stabilization Fund 1
11,148
11,121
11,096
11,091
11,091
11,090
11,090
11,090
11,090
11,090
5,250
5,025
5,641
6,163
6,1%
6,510
6,692
6,847
6,926
7,253
7,348
11,312
11,541
11,370
11,394
11,513
11,478
11,686
11,843
11,955
10,212
6,289
6,656
7,158
7,408
7,958
7,894
8,672
11,798
12,554
3
Special drawing rights2,3
4
Reserve position in International Monetary Fund 2
5
Foreign currencies 4
1. Gold held under earmark at Federal Reserve Banks for foreign and international accounts is not included in the gold stock of the United States; see table
3.13. Gold stock is valued at $42.22 per fine troy ounce.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of member countries.
From July 1974 through December 1980, 16 currencies were used; from January
1981, 5 currencies have been used. The U.S. SDR holdings and reserve position in
the IMF also are valued on this basis beginning July 1974.
3.13
3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus transactions in SDRs.
4. Valued at current market exchange rates.
FOREIGN OFFICIAL ASSETS H E L D AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1985
Assets
1982
1983
1984
May
1 Deposits
Assets held in custody
2 U.S. Treasury securities 1
3 Earmarked gold2
July
Aug.
Sept.
Nov.
Oct.
328
190
253
204
310
274
223
535
267
340
112,544
14,716
117,670
14,414
118,267
14,265
116,989
14,265
121,755
14,262
124,400
14,251
123,321
14,251
120,978
14,245
118,000
14,242
117,814
14,240
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 B R A N C H E S OF U.S. B A N K S
A55
Balance Sheet Data 1
Millions of dollars, end of period
Asset account
Apr.
May
June
July
Aug.
Sept.
All foreign countries
1 Total, all currencies
2 Claims on United States
3
Parent bank
4
Other banks in United States 2
5
Nonbanks 2
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 2
16
Nonbanks 2
17 Claims on foreigners
18
Other branches of parent bank
19
Banks
20
Public borrowers
21
Nonbank foreigners
22 Other assets
469,712
477,090
453,656
461,636
459,416
458,243
464,000
457,553
456,405
91,805
61,666
115,542
82,026
113,449
78,165
13,664
21,620
320,106
95,128
100,397
23,343
101,238
121,823
86,907
14,199
20,717
319,749
91,302
104,350
23,195
100,902
121,140
85,609
14,101
21,430
317,589
90,826
102,312
23,128
101,323
121,284
85,272
14,461
21,551
316,081
89,833
101,500
23,051
101,697
119,393
84,045
14,739
20,609
322,749
91,172
104,813
23,124
103,640
122,932
86,779
14,058
22,095
313,073
89,640
99,032
22,863
101,538
119,431
85,447
13,129
20,855
314,717
87,658
102,135
23,277
101,647
30,139
33.516
358,493
91,168
133,752
24,131
109,442
342,689
96,004
117,668
24.517
107,785
19,414
18,859
20,101
20,064
20,687
20,878
21,858
21,548
22,257
361,982
371,508
350,636
352,428
350,609
350,136
346,109
341,871
335,021
90,085
61,010
113,436
80,909
29,075
259,871
73,537
106,447
18,413
61,474
247,406
78,431
93,332
17,890
60,977
111,482
77,285
13,500
20,697
228,544
78,690
76,940
17,626
55,288
119,228
85,775
13,840
19,613
223,383
75,057
76,926
17,316
54,084
118,687
84,640
13.705
20,342
221,989
75,067
75.706
17,331
53,885
118,726
84,286
14,019
20,421
221,478
74,593
75,337
17,220
54,328
116,422
82,895
14,115
19,412
219,824
74,471
75,339
17,033
52,981
120,184
85,850
13,451
20,883
212,023
72,437
70,973
17,037
51,576
116,535
84,236
12,568
19,731
208,664
69,226
70,890
17,274
51,274
12,026
10,666
10,610
9,817
9,933
9,932
9,863
9,664
9,822
32,527
United Kingdom
23 Total, all currencies
24 Claims on United States
25
Parent bank
26
Other banks in United States 2
27
Nonbanks 2
28 Claims on foreigners
29
Other branches of parent bank
30
Banks
31
Public borrowers
32
Nonbank foreigners
33 Other assets
34 Total payable in U.S. dollars
35 Claims on United States
36
Parent bank
37
Other banks in United States 2
38
Nonbanks 2
39 Claims on foreigners
40
Other branches of parent bank
41
Banks
42
Public borrowers
43
Nonbank foreigners
44 Other assets
161,067
158,732
144,385
148,711
148,285
149,599
151,455
151,117
150,276
149,607
27,354
23,017
34,433
29,111
27,731
21,918
1,429
4,384
111,772
37,897
37,443
5,334
31,098
29,930
23,236
1,649
5,045
113,689
34,036
41,242
4,967
33,444
30,314
23,554
1,613
5,147
112,829
33,948
39,905
4,932
34,044
31,322
23,930
1,691
5,701
113,192
34,188
39,850
4,973
34,181
31,140
24,368
1,525
5,247
114,827
33,539
40,546
5,056
35,686
35,300
28,200
1,474
5,626
110,475
32,616
37,796
5,054
35,009
32,635
25,813
1,329
5,488
112,514
32,403
40,509
5,112
34,495
33,852
26,992
1,269
5,591
110,435
32,074
37,858
5,628
34,875
4,337
5,322
127,734
37,000
50,767
6,240
33,727
119,280
36,565
43,352
5,898
33,465
5,979
5,019
4,882
5,092
5,142
5,085
5,48?
5,342
5,127
5,320
123,740
126,012
112,809
111,498
111,305
112,686
110,451
110,972
108,731
108,024
26,761
22,756
33,756
28,756
4,005
92,228
31,648
36,717
4,329
19,534
5,000
88,917
31,838
32,188
4,194
20,697
26,924
21,551
1,363
4,010
82,889
33,551
26,805
4,030
18,503
28,998
22,906
1,572
4,520
79,509
29,056
27,803
3,503
19,147
29,389
23,261
1,488
4,640
79,029
29,230
27,184
3,500
19,115
30,368
23,625
1,604
5,139
79,464
29,364
27,317
3,587
19,196
30,087
23,995
1,415
4,677
77,446
28,623
26,349
3,538
18,936
34,251
27,897
1,355
4,999
73,769
26,993
24,382
3,599
18,795
31,520
25,342
1,247
4,931
74,286
26,581
25,458
3,633
18,614
32,605
26,531
1,194
4,880
72,287
26,683
23,888
3,966
17,750
4,751
3,339
2,996
2,991
2,887
2,854
2,918
2,952
2,925
3,132
143,549
140,785
138,510
135,214
78,049
51,171
11,999
14,879
61,959
15,645
28,501
6,642
11,171
75,275
48,669
12,381
14,225
62,209
15,669
29,240
6,505
10,795
74,448
47,815
11,725
14,908
60,964
16,479
27,601
6,432
10,452
72,634
47,299
11,009
14,326
59,277
15,428
26,964
6,486
10,399
Bahamas and Caymans
45 Total, all currencies
46 Claims on United States
47
Parent bank
48
Other banks in United States 2
49
Nonbanks 2
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
145,156
152,083
146,811
77,296
49,449
11,544
16,303
65,598
17,661
30,246
6,089
79,150
52,996
11,647
14,507
62,164
14,716
29,887
6,683
10,878
144,033
78,849
51,886
11,723
15,240
61,604
15,271
28,942
6,604
10,787
59,403
34,653
75,309
48,720
24,750
26,589
81,450
18,720
42,699
6,413
13,618
72,868
20,626
36,842
6,093
12,592
4,303
3,906
3,917
3,782
3,580
3,541
3,301
3,098
3,303
139,605
145,641
141,562
139,926
138,724
138,581
135,472
133,521
129,830
11,602
1. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
145,096
2. Data for assets vis-^-vis other banks in the United States and vis-^-vis
nonbanks are combined for dates before June 1984.
A56
3.14
International Statistics • February 1986
Continued
1985
Liability account
1982
|
1983
1984
Apr.
May
June
July
Aug.
Sept.
Oct.?
All foreign countries
57 Total, all currencies
469,712
477,090
453,656
461,636
459,416
458,243
464,000
457,553
456,405
454,216
58 Negotiable CDs 3
59 To United States
60 Parent bank
61
Other banks in United States
62 Nonbanks
n.a.
179,015
75,621
33,405
69,989
n.a.
188,070
81,261
29,453
77,356
37,725
147,583
78,739
18,409
50,435
38,940
145,511
76,385
18,834
50,292
37,188
145,610
78,419
18,782
48,409
37,952
147,424
79,846
19,430
48,148
37,683
146,389
80,656
17,032
48,701
37,885
144,408
77,484
16,087
50,837
39,676
143,452
78,415
17,006
47,831
38,044
139,832
75,236
15,582
49,014
63 To foreigners
64 Other branches of parent bank
65 Banks
66 Official institutions
67 Nonbank foreigners
68 Other liabilities
270,853
90,191
96,860
19,614
64,188
19,844
269,685
90,615
92,889
18,896
68,845
19,335
247,907
93,909
78,203
20,281
55,514
20,441
255,632
92,502
83,614
21,854
57,662
21,553
254,535
91,967
81,537
21,827
59,204
22,083
251,572
91,110
80,4%
21,703
58,263
21,295
256,769
92,984
82,777
20,937
60,071
23,159
252,717
90,483
80,940
21,234
60,060
22,543
250,344
87,854
82,426
21,015
59,049
23,133
252,252
88,539
82,473
21,319
59,921
24,088
69 Total payable in U.S. dollars
379,270
388,291
367,145
366,525
364,590
365,812
361,403
357,182
350,122
345,254
70 Negotiable CDs 3
71 To United States
72 Parent bank
73 Other banks in United States
74 Nonbanks
n.a.
175,528
73,295
33,040
69,193
n.a.
184,305
79,035
28,936
76,334
35,227
143,571
76,254
17,935
49,382
35,958
140,855
73,786
18,270
48,799
34,216
140,958
75,795
18,209
46,954
34,637
142,499
77,040
18,869
46,590
33,716
141,145
77,543
16,446
47,156
34,030
138,786
74,176
15,466
49,144
35,695
136,613
74,562
16,081
45,970
33,995
132,638
70,435
15,108
47,095
75 To foreigners
76 Other branches of parent bank
77 Banks
78 Official institutions
79 Nonbank foreigners
80 Other liabilities
192,510
72,921
57,463
15,055
47,071
11,232
194,139
73,522
57,022
13,855
51,260
9,847
178,260
77,770
45,123
15,773
39,594
10,087
179,488
76,650
45,167
17,178
40,493
10,224
179,567
76,107
44,413
17,407
41,640
9,849
179,353
75,930
44,694
17,278
41,451
9,323
177,144
76,386
43,691
15,935
41,132
9,398
174,645
73,770
42,859
16,238
41,778
9,721
167,817
69,606
41,216
16,221
40,774
9,997
168,377
70,007
41,562
16,007
40,801
10,244
United Kingdom
161,067
158,732
144,385
148,711
148,285
149,599
151,455
151,117
150,276
149,607
82 Negotiable CDs 3
83 To United States
84
Parent bank
85 Other banks in United States
86 Nonbanks
n.a.
53,954
13,091
12,205
28,658
n.a.
55,799
14,021
11,328
30,450
34,413
25,250
14,651
3,125
7,474
35,326
23,986
14,033
2,665
7,288
33,661
24,811
14,278
2,735
7,798
34,437
25,480
14,910
3,571
6,999
34,094
24,167
13,434
2,853
7,880
34,156
25,158
14,336
2,839
7,983
35,819
25,547
14,592
3,526
7,429
33,913
24,958
13,893
2,602
8,463
87 To foreigners
88 Other branches of parent bank
89 Banks
90 Official institutions
91
Nonbank foreigners
92 Other liabilities
99,567
18,361
44,020
11,504
25,682
7,546
95,847
19,038
41,624
10,151
25,034
7,086
77,424
21,631
30,436
10,154
15,203
7,298
80,913
21,887
32,259
11,590
15,177
8,486
81,033
21,784
31,573
11,260
16,416
8,780
81,004
22,565
30,852
11,240
16,347
8,678
83,480
23,647
32,389
10,180
17,264
9,714
82,317
22,348
31,518
10,823
17,628
9,486
79,671
20,233
32,041
10,824
16,573
9,239
80,646
20,175
33,102
10,812
16,557
10,090
81 Total, all currencies
130,261
131,167
117,497
116,128
115,742
117,333
114,123
115,064
112,816
109,945
94 Negotiable CDs 3
95 To United States
%
Parent bank
97
Other banks in United States
98 Nonbanks
n.a.
53,029
12,814
12,026
28,189
n.a.
54,691
13,839
11,044
29,808
33,070
24,105
14,339
2,980
6,786
33,763
22,281
13,569
2,500
6,212
32,140
23,206
13,869
2,550
6,787
32,721
23,729
14,472
3,387
5,870
31,743
22,254
12,777
2,687
6,790
31,911
23,119
13,773
2,628
6,718
33,380
23,329
13,995
3,309
6,025
31,574
21,536
12,032
2,479
7,025
99 To foreigners
100 Other branches of parent bank
101
Banks
102 Official institutions
103 Nonbank foreigners
104 Other liabilities
73,477
14,300
28,810
9,668
20,699
3,755
73,279
15,403
29,320
8,279
20,277
3,197
56,923
18,294
18,356
8,871
11,402
3,399
56,473
18,451
17,497
9,989
10,536
3,611
56,885
18,375
17,417
9,687
11,406
3,511
57,504
19,053
17,175
9,648
11,628
3,379
56,783
19,640
17,249
8,430
11,464
3,343
56,208
18,241
16,975
9,005
11,987
3,826
52,245
15,999
15,787
9,055
11,404
3,862
52,469
15,480
17,053
8,877
11,059
4,366
93 Total payable in U.S. dollars
Bahamas and Caymans
105 Total, all currencies
3
106 Negotiable CDs
107 To United States
108 Parent bank
109 Other banks in United States
no
Nonbanks
111 To foreigners
112 Other branches of parent bank
113 Banks
114 Official institutions
115 Nonbank foreigners
116 Other liabilities
117 Total payable in U.S. dollars
145,156
152,083
146,811
145,096
144,033
143,549
140,785
138,510
135,214
134,951
436
99,379
45,557
14,545
39,277
344
99,856
45,740
14,748
39,368
320
98,682
47,147
12,979
38,566
356
95,793
43,384
12,153
40,256
686
94,071
44,431
12,081
37,559
745
92,668
42,841
11,940
37,887
n.a.
104,425
47,081
18,466
38,878
n.a.
111,299
50,980
16,057
44,262
615
102,955
47,162
13,938
41,855
634
100,489
43,749
15,112
41,628
38,274
15,7%
10,166
1,967
10,345
2,457
38,445
14,936
11,876
1,919
11,274
2,339
40,320
16,782
12,405
2,054
9,079
2,921
41,102
17,179
13,469
1,598
8,856
2,871
41,437
17,759
12,879
2,194
8,605
2,781
40,621
16,615
13,600
1,866
8,540
2,728
39,081
16,645
12,329
1,941
8,166
2,702
39,679
17,638
11,452
1,687
8,902
2,682
37,667
16,023
11,423
1,760
8,461
2,790
38,786
17,201
11,123
1,869
8,593
2,752
141,908
148,278
143,582
140,945
139,909
139,648
136,820
134,623
130,921
130,681
3. 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
A57
3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1985
Item
1 Total
2
3
4
5
6
7
8
9
10
11
12
1
By type
Liabilities reported by banks in the United States 2
U.S. Treasury bills and certificates 3
U.S. Treasury bonds and notes
Marketable
Nonmarketable 4
U.S. securities other than U.S. Treasury securities 5
By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries 6
1983
1984
Apr.
May
June
July
Aug.'
Sept.
Oct.P
177,950
180,525'
170,609
173,725
177,780
180,766
181,175
180,289
178,271
25,534
54,341
26,089
59,976
22,771
57,226
23,153
56,691
22,915
58,589
22,101
60,727
23,224
60,921
25,869
56,493
26,969
54,398
68,514
7,250
22,311
69,029
5,800
19,631'
67,022
4,900
18,690
70,552
4,500
18,829
73,265
4,500
18,511
75,053
4,500
18,385
75,157
3,550
18,323
76,221
3,550
18,156
75,016
3,550
18,338
67,645
2,438
6,248
92,572
958
8,089
69,789
1,528
8,554
93,920'
1,264
5,470
65,660
1,403
7,528
89,965
1,403
4,650
67,948
1,558
8,072
90,181
1,262
4,704
70,346
1,571
8,467
91,406
1,299
4,691
73,378
2,010
8,846
90,834
1,259
4,439
75,226
1,664
9,524
89,485
1,110
4,166
74,525
1,561
10,532
88,282
1,397
3,992
74,260
1,586
10,079
87,246
1,410
3,690
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable in foreign currencies through 1974) and Treasury bills issued to official
institutions of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes
bonds and notes payable in foreign currencies.
5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
NOTE. Based on Treasury Department data and on data reported to the
Treasury Department by banks (including Federal Reserve Banks) and securities
dealers in the United States.
3.16 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1984
Item
1981
1982
Dec.
1 Banks' own liabilities
2 Banks' own claims
3
Deposits
4
Other claims
5 Claims of banks' domestic customers 1
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.
3,523
4,980
3,398
1,582
971
4,844
7,707
4,251
3,456
676
1985
1983
5,219
7,231
2,731
4,501
1,059
8,578
11,874
4,998
6,876
569
Mar.
June
8,012
12,639
6,148
6,491
440
10,150
14,012
7,437
6,575
243
Sept.P
12,048
14,930
8,505
6,425
328
NOTE. Data on claims exclude foreign currencies held by U.S. monetary
authorities,
A58
3.17
International Statistics • February 1986
LIABILITIES TO F O R E I G N E R S
Payable in U . S . dollars
Millions of dollars, end of period
Reported by Banks in the United States
1985
Holder and type of liability
1982
1983
1984
Apr.
May
June
July
Aug.
Sept.
Oct.P
1 All foreigners
307,056
369,607
407,133
410,976
411,297
412,861
416,420
420,182'
420,706
418,559
2 Banks' own liabilities
3 Demand deposits
4 Time deposits'
5 Other 2
6 Own foreign offices 3
227,089
15,889
68,797
23,184
119,219
279,087
17,470
90,632
25,874
145,111
306,499
19,571
110,286
26,002
150,640
313,018
18,295
117,872
24,392
152,459
315,608
17,705
120,792
25,614
151,496
317,062
19,423
116,331
25,782
155,526
318,944
17,662
116,069
25,875
159,338
321,364'
17,735
119,071'
25,701'
158,857'
323,307
20,926
115,265
29.739
157,377
322,740
18,605
114,766
28,670
160,699
79,967
55,628
90,520
68,669
100,634
76,368
97,958
73,078
95,690
71,597
95,799
73,061
97,477
75,396
98,818
75,797
97,399
73,398
95,819
72,163
20,636
3,702
17,467
4,385
18,747
5,518
18,337
6,543
17,690
6,403
16,207
6,532
16,165
5,916
16,610'
6,412'
17,140
6,861
16,746
6,911
11 Nonmonetary international and regional
organizations7
4,922
5,957
4,083
6,166
6,694
5,709
5,019
7,353
7,467
6,766
12 Banks' own liabilities
13 Demand deposits
14 Time deposits 1
15 Other 2
1,909
106
1,664
139
4,632
297
3,584
750
1,644
254
1,102
288
3,137
167
2,276
694
4,389
264
3,747
377
3,928
164
3,023
740
3,243
134
2,556
553
5,569
252
4,366
951
3,275
243
2,261
771
1,842
143
1,299
399
16 Banks' custody liabilities4
17 U.S. Treasury bills and certificates
18 Other negotiable and readily transferable
instruments 6
19 Other
3,013
1,621
1,325
463
2,440
916
3,029
1,434
2,305
775
1,782
642
1,777
767
1,784
742
4,192
2,759
4,924
3,636
1,392
0
862
0
1,524
0
1,593
2
1,531
0
1,140
0
1,010
0
1,042
1
1,433
0
1,287
1
20 Official institutions8
71,647
79,876
86,065
79,997
79,844
81,504
82,828
84,145'
82,362
81,366
21 Banks' own liabilities
22 Demand deposits
23 Time deposits 1
24 Other 2
16,640
1,899
5,528
9,212
19,427
1,837
7,318
10,272
19,039
1,823
9,374
7,842
16,631
1,975
9,176
5,481
17,652
1,630
8,728
7,294
17,795
1,891
9,050
6,853
17,256
1,546
9,070
6,640
17,720'
1,538
9,334'
6,849'
20,262
2,151
8,964
9,147
21,142
1,722
10,262
9,158
25 Banks' custody liabilities4
26 U.S. Treasury bills and certificates 5
27 Other negotiable and readily transferable
instruments 6
28 Other
55,008
46,658
60,448
54,341
67,026
59,976
63,366
57,226
62,192
56,691
63,710
58,589
65,572
60,727
66,425
60,921
62,100
56,493
60,225
54,398
8,321
28
6,082
25
6,966
84
6,007
133
5,451
50
5,042
78
4,725
120
5,291
213
5,472
135
5,758
69
185,881
226,887
248,897
253,040
251,784
254,045
257,113
256,645'
257,643
257,246
169,449
50,230
8,675
28,386
13,169
119,219
205,347
60,236
8,759
37,439
14,038
145,111
225,372
74,732
10,556
47,155
17,021
150,640
230,607
78,149
9,266
51,610
17,273
152,459
229,858
78,361
8,714
52,674
16,973
151,496
232,319
76,793
9,847
49,968
16,977
155,526
235,488
76,150
8,647
49,919
17,584
159,338
234,401'
75,544'
8,594
49,915'
17,035'
158,857'
235,016
77,639
10,468
48,822
18,350
157,377
235,295
74,596
9,045
48,124
17,428
160,699
36 Banks' custody liabilities4
37 U.S. Treasury bills and certificates
38 Other negotiable and readily transferable
instruments 6
39 Other
16,432
5,809
21,540
10,178
23,525
11,448
22,432
10,446
21,926
10,216
21,727
9,745
21,625
9,934
22,244
9,966
22,627
9,952
21,951
9,896
7,857
2,766
7,485
3,877
7,236
4,841
6,235
5,751
6,104
5,606
6,231
5,751
6,390
5,301
6,569'
5,71c
6,462
6,213
5,906
6,148
40 Other foreigners
44,606
56,887
68,087
71,774
72,976
71,602
71,460
72,039'
73,233
73,181
41 Banks' own liabilities
42 Demand deposits
43 Time deposits
44 Other 2
39,092
5,209
33,219
664
49,680
6,577
42,290
813
60,444
6,938
52,655
851
62,643
6,888
54,810
945
63,710
7,098
55,643
969
63,020
7,520
54,290
1,211
62,957
7,335
54,524
1,098
63,674'
7,351
55,456'
867
64,754
8,064
55,218
1,471
64,461
7,696
55,080
1,686
5,514
1,540
7,207
3,686
7,642
4,029
9,131
3,973
9,266
3,915
8,581
4,085
8,503
3,968
8,365
4,169
8,479
4,193
8,719
4,232
3,065
908
3,038
483
3,021
593
4,501
657
4,604
746
3,793
704
4,040
495
3,708
489
3,774
513
3,795
692
14,307
10,346
10,476
9,145
9,081
8,679
8,567
8,903
9,208
9,078
7 Banks' custody liabilities4
8 U.S. Treasury bills and certificates 5
9 Other negotiable and readily transferable
instruments 6
10 Other
29 Banks9
30 Banks' own liabilities
31 Unaffiliated foreign banks
32
Demand deposits
33
Time 2deposits'
34
Other
35 Own foreign offices 3
45 Banks' custody liabilities4
46
U.S. Treasury bills and certificates
47 Other negotiable and readily transferable
instruments 6
48 Other
49 MEMO: Negotiable time certificates of
deposit in custody for foreigners
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
Data
3.17 Continued
1985
Area and country
1982
1983
1984
Apr.
307,056
1
May
June
July
Aug.
Sept.
Oct.?
369,607
407,133'
410,976
411,297
412,861
416,420
420,182'
420,706
418,559
404,811
404,603
407,152
411,401
412,829'
413,238
411,793
149,218
537
4,795
557
476
13,627
3,539
649
7,895
4,558
2,138
698
2,000
1,901
30,059
506
68,239
648
5,790
125
480
151,219
627
4,619
494
604
14,178
3,727
585
8,467
4,685
1,994
665
2,030
1,689
29,706
384
69,779
585
5,877
67
458
153,718
563
4,889
727
325
13,849
4,003
605
9,276
4,386
1,397
635
2,015
2,277
29,547
631
70,958
729
6,261
31
614
156,132
567
5,743
684
349
15,237
4,389
588
9,624
4,689
1,183
658
2,113
2,559
29,835
598
70,208
626
6,004
72
406
160,127'
711
5,416
617
377
15,626
5,359
531
9,537
4,588'
1,156
672
2,034
2,008
29,475'
404
73,562'
622
6,884'
45
503'
157,201
767
5,710
778
351
15,743
5,224
603
9,088
4,568
1,043
640
2,140
1,668
29,294
516
70,500
647
7,407
37
477
158,268
613
5,249
558
594
15,949
4,366
536
9,721
4,285
1,132
647
2,097
1,760
28,499
417
73,330
626
7,367
51
471
2 Foreign countries
302,134
363,649
403,049'
3
4
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
138,072
585
2,709
466
531
9,441
3,599
520
8,462
4,290
1,673
373
1,603
1,799
32,246
467
60,683
562
7,403
65
596
153,212'
615
4,114
438
418
12,701
3,358
699
10,762'
4,799
1,548
597
2,082
1,676
31,74V
584
68,671'
602
7,192'
79
537
12,232
16,026
16,048
17,006
16,214
15,874
16,284
16,739
17,363
16,269
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
8,417
3,291
140,088
4,038
55,818
2,266
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
153,5^
4,394'
56,897
2,370
5,275'
36,773'
2,001
2,514
10
1,092
896
183
12,506
4,153
6,951
1,266
1,394
10,545
4,297
156,823
4,664
59,069
3,159
4,743
35,765
1,909
2,401
6
1,022
955
154
13,222
4,383
7,584
1,077
1,461
10,791
4,458
157,092
4,912
58,195
3,192
5,376
35,489
1,922
2,452
7
987
979
146
13,678
4,439
7,570
1,162
1,492
10,696
4,3%
158,310
5,081
57,406
2,503
5,187
38, %5
1,870
2,526
6
1,004
%3
123
13,533
4,200
7,427
1,168
1,415
10,471
4,460
159,011
5,322
55,858
2,380
5,602
40,%5
1,910
2,421
10
1,046
972
194
13,123
4,025
7,462
1,113
1,460
10,853
4,297
157,634'
5,187'
55,486'
2,741
5,918'
38,338'
1,966
2,543
9
1,043
995
152
13,381
4,364'
7,447
1,133
1,557
10,940
4,435
157,470
5,634
53,665
2,124
5,894
38,955
1,907
2,599
13
1,251
1,005
144
13,809
4,973
7,163
1,159
1,576
11,121
4,479
157,741
5,872
55,149
2,238
5,861
37,043
1,940
2,561
64
1,029
957
142
13,590
4,665
8,250
1,093
1,498
11,404
4,387
48,716
58,570
71,192'
73,370
71,641
70,477
71,715
70,509'
73,267
71,821
203
2,761
4,465
433
857
606
16,078
1,692
770
629
13,433
6,789
249
4,051
6,657
464
997
1,722
18,079
1,648
1,234
747
12,976
9,748
1,153
4,975
6,594
507
1,033
1,268
21,652'
1,724
1,383
1,257
16,804
12,841'
912
5,242
7,091
554
1,241
873
22,683
1,595
1,223
1,141
16,373
14,441
698
5,381
7,360
546
1,164
988
22,688
1,598
1,305
1,167
16,316
12,430
886
5,545
7,989
569
1,264
1,053
21,103
1,705
1,443
1,063
15,052
12,805
939
5,849
7,831
555
1,463
1,011
22,913
1,493
1,335
984
15,410
11,932
1,135
6,047
8,012
484
1,337
885
22,537
1,580'
1,694
1,073
14,811'
10,91V
1,973
6,244
7,923
646
1,363
1,190
23,582
1,657
1,606
1,029
15,337
10,718
1,809
6,455
7,940
642
1,570
2,118
22,091
1,751
1,325
1,014
15,253
9,852
Oil-exporting countries 4
Other Africa
3,124
432
81
292
23
1,280
1,016
2,827
671
84
449
87
620
917
3,396
647
118
328
153
1,189
961
3,517
747
155
339
128
1,177
969
3,429
618
189
273
124
1,114
1,112
3,920
745
161
332
170
1,497
1,015
3,384
881
98
181
87
1,099
1,037
3,501
737
162
420
103
1,092
986
3,635
923
157
370
115
1,049
1,021
3,723
885
140
404
136
1,076
1,082
All other
6,143
5,904
239
8,067
7,857
210
5,684
5,300
384
4,877
4,456
422
5,009
4,608
401
4,854
4,462
392
4,876
4,364
511
4,319
3,850
469
4,302
3,762
540
3,971
3,477
494
4,922
4,049
517
357
5,957
5,273
419
265
4,083
3,376
587
120
6,166
5,301
706
159
6,694
5,636
834
224
5,709
4,698
808
203
5,019
3,%7
782
270
7,353
6,458
739
156
7,467
6,542
7%
129
6,766
5,770
646
350
Belgium-Luxembourg
6
7
8
9
10
11
1?
13
14
15
16
17
18
19
70
71
??
23
Italy
United Kingdom
Other Western Europe 1
Other Eastern Europe 2
24 Canada
75 Latin America and Caribbean
76
77
78
79
30 British West Indies
31
Chile
3?
33 Cuba
34
35
36
37
38 Netherlands Antilles
39
40
Peru
41
47
Venezuela
43 Other Latin America and Caribbean
44
45
46
47
48
49
50
51
57
53
54
55
56
57
58
59
60
61
67
63
64
65
66
China
Hong Kong
Middle-East oil-exporting countries 3
Other Asia
67 Nonmonetary international and regional
68
69
70
International
Latin American regional
Other regional5
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
International Statistics • February 1986
3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1985
Area and country
1982
1983
1984
Apr.
May
June
July
Sept.
Oct.?
1 Total
355,705
391,312
398,845
391,432
391,355
396,253
390,368
387,997'
392,624
381,277
2 Foreign countries
355,636
391,148
398,251
390,295
390,540
395,543
390,094
387,558'
392,242
380,508
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
91,927
401
5,639
1,275
1,044
8,766
1,284
476
9,018
1,267
690
1,114
3,573
3,358
1,863
812
47,364
1,718
477
192
1,598
98,151
433
4,794
648
898
9,142
1,313
817
9,119
1,351
675
1,243
2,884
2,220
2,123
1,130
55,352
1,886
596
142
1,382
99,630
519
5,161
601
804
10,278
1,008
907
8,256
1,401
748
1,151
2,890
2,338
1,843
1,147
56,396
1,892
640
245
1,404
100,205
552
5,264
560
700
10,462
1,015
921
7,798
1,040
753
1,158
2,587
2,177
1,631
1,162
58,020
1,940
760
312
1,393
100,953
536
5,219
474
896
9,969
1,223
1,002
7,520
1,339
750
1,156
2,700
2,067
2,231
1,208
58,377
1,958
775
297
1,255
100,377
815
5,740
498
875
10,001
1,115
947
7,623
1,137
710
1,151
2,387
2,698
2,669
1,313
56,437
1,972
679
250
1,358
101,028'
703'
5,501'
492
738
10,282'
948'
959'
6,527'
105,835
764
6,147
615
905
11,046
999
1,016
7,426
1,281
858
1,211
2,438
2,475
3,091
1,303
60,218
1,899
694
199
1,252
102,322
673
5,871
638
796
10,193
1,036
966
7,597
1,110
787
1,141
2,312
2,616
2,629
1,355
58,023
1,866
1,250
332
1,131
3 Europe
4 Austria
5 Belgium-Luxembourg
6 Denmark
7 Finland
8 France
9 Germany
10 Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
21 Other Western Europe 1
22 U.S.S.R
23 Other Eastern Europe 2
Aug.
1,20c
683
1,181
2,156'
2,496'
2,629
1,234
59,280'
1,954
629
239
1,198
13,678
16,341
16,093
18,383
17,926
17,889
16,696
17,005'
16,944
15,932
25 Latin America and Caribbean
26 Argentina
27 Bahamas
28 Bermuda
29 Brazil
30 British West Indies
31 Chile
32 Colombia
33 Cuba
34 Ecuador
35 Guatemala 3
36 Jamaica 3
37 Mexico
38 Netherlands Antilles
39 Panama
40 Peru
41
Uruguay
42 Venezuela
43 Other Latin America and Caribbean
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
205,491
11,749
59,633
566
24,667
35,527
6,072
3,745
0
2,307
129
215
34,802
1,154
7,848
2,536
977
11,287
2,277
207,649
11,043
57,949
592
26,315
38,120
6,839
3,499
0
2,420
158
252
34,824
1,350
7,707
2,384
1,088
11,017
2,091
199,130
11,163
55,554
633
26,207
35,571
6,676
3,246
0
2,467
154
223
32,554
1,319
7,039
2,353
1,014
10,804
2,154
201,180
11,346
56,781
506
26,434
36,107
6,634
3,270
0
2,487
149
237
32,748
1,386
6,751
2,310
1,013
10,947
2,072
203,974
11,416
59,477
563
26,549
36,372
6,680
3,207
0
2,493
145
227
32,384
1,249
6,856
2,286
1,013
10,996
2,060
200,765
11,456
55,610
405
26,559
37,436
6,663
3,210
0
2,450
153
234
32,129
197,106'
11,293
53,707'
502'
26,441'
35,853'
6,476
3,205'
0
2,430
149
228
32,375'
1,135
6,923
196,299
11,850
53,325
546
26,022
35,083
6,524
3,195
0
2,486
168
228
32,349
1,170
7,055
1,018
11,028
2,122
1,035
11,052
2,005
190,595
11,230
51,236
1,017
25,389
34,152
6,136
3,211
4
2,411
165
222
31,704
1,387
6,530
2,013
947
10,818
2,022
44 Asia
China
45
Mainland
46
Taiwan
47
Hong Kong
48 India
49
Indonesia
50
Israel
51 Japan
52
Korea
53 Philippines
54 Thailand
55
Middle East oil-exporting countries 4
56 Other Asia
60,952
67,837
66,296
63,450
61,833
63,470
63,242
63,710'
64,374
63,091
214
2,288
6,787
222
348
2,029
28,379
9,387
2,625
643
3,087
4,943
292
1,908
8,489
330
805
1,832
30,354
9,943
2,107
1,219
4,954
5,603
710
1,849
7,283
425
724
2,088
29,066
9,285
2,550
1,125
5,044
6,147
572
1,937
6,897
307
704
2,004
26,614
9,434
2,360
939
5,509
6,171
543
1,641
7,290
270
701
2,038
25,429
9,127
2,384
852
5,546
6,012
358
1,718
7,237
310
682
2,598
26,529
9,158
2,448
862
5,120
6,449
635
1,540
7,473
385
631
2,053
26,336
9,707
2,454
746
5,315
5,967
560
1,527'
7,999'
460
623
1,955'
27,785'
9,337'
2,487
757'
4,116
6,104'
1,148
1,525
7,718
461
718
1,875
26,952
9,092
2,443
804
4,845
6,791
997
1,329
6,937
388
653
1,901
28,136
9,736
2,237
768
4,575
5,436
57 Africa
58 Egypt
59 Morocco
60
South Africa
61
Zaire
62 Oil-exporting countries 5
63 Other
5,346
322
353
2,012
57
801
1,802
6,654
747
440
2,634
33
1,073
1,727
6,615
728
583
2,795
18
842
1,649
6,299
629
595
2,508
24
893
1,651
6,203
612
577
2,497
24
871
1,621
6,075
626
592
2,524
24
740
1,569
5,957
606
596
2,402
24
743
1,587
5,718
585
598
2,214
25
722
1,574
5,701
634
592
2,063
22
860
1,531
5,458
668
610
1,968
21
674
1,516
64 Other countries
65 Australia
66 All other
2,107
1,713
394
2,898
2,256
642
3,447
2,769
678
3,403
2,755
648
3,194
2,536
658
3,183
2,498
685
3,057
2,320
737
2,991'
2,227'
764
3,090
2,303
787
3,110
2,293
818
68
164
594
1138
815
710
275
382
768
24 Canada
67 Nonmonetary international and regional
organizations 6
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
3. Included in "Other Latin America and Caribbean" through March 1978.
1,110
6,985
2,237
1,007
10,992
2,129
2,221
438
2,206
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."
Nonbank-Reported
Data
3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
Millions of dollars, end of period
1985
Type of claim
1982
1983
1984
Apr.
May
July
Aug/
390,368
61,239
158,164
117,446
48,786
68,660
53,520
387,997
60,961
155,734
118,023
49,528
68,495
53,279
June
Sept.
1 Total
396,015
426,215
431,761
2
3
4
5
6
7
8
355,705
45,422
127,293
121,377
44,223
77,153
61,614
391,312
57,569
146,393
123,837
47,126
76,711
63,514
398,845
61,595
156,174
123,967
48,379
75,588
57,109
40,310
2,491
34,903
2,969
32,916
3,380
29,439
2,870
33,468
6,605
30,763
26,064
23,805
21,064
21,536
7,056
5,870
5,732
5,505
5,327
38,153
37,715
37,103
31,699
30,517
42,499
46,217
40,508
Banks' own claims on foreigners
Foreign public borrowers
Own foreign offices 1
Unaffiliated foreign banks
Deposits
Other
All other foreigners
9 Claims of banks' domestic customers2 . .
425,692
391,432
62,114
155,070
119,696
47,990
71,706
54,552
391,355
61,673
157,026
119,435
48,459
70,976
53,222
3%,253
61,241
162,840
118,493
48,135
70,358
53,679
Oct.P
426,093
392,624
62,007
159,354
118,345
49,348
68,997
52,918
381,277
60,101
156,103
113,194
46,886
66,308
51,879
11 Negotiable and readily transferable
12 Outstanding collections and other
13 MEMO: C u s t o m e r liability o n
Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States 4
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.
39,552'
36,236'
37,546'
37,430'
38,160
38,355
n.a.
3. Principally negotiable time certificates of deposit and bankers acceptances.
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.
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.
3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1984
Maturity; by borrower and area
1981A
1982
Dec.
1 Total
2
3
4
5
6
7
8
9
10
11
12
13
By borrower
Maturity of 1 year or less 1
Foreign public borrowers
All other foreigners
Maturity of over 1 year 1
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less 1
Europe
Canada
Latin America and Caribbean
Africa
All other 2
Maturity of over 1 year 1
14 Europe
15 Canada
16 Latin America and Caribbean
17
18 Africa
19 All other 2
Mar.
June
Sept.P
154,590
228,150
243,715
243,409
239,521
231,713
231,832
116,394
15,142
101,252
38,197
15,589
22,608
173,917
21,256
152,661
54,233
23,137
31,095
176,158
24,039
152,120
67,557
32,521
35,036
166,381
22,758
143,623
77,027
39,247
37,780
165,185
23,615
141,570
74,335
38,164
36,171
158,641
23,899
134,742
73,072
37,425
35,647
160,664
25,473
135,191
71,168
36,741
34,428
28,130
4,662
48,717
31,485
2,457
943
50,500
7,642
73,291
37,578
3,680
1,226
56,117
6,211
73,660
34,403
4,199
1,569
58,398
6,015
61,653
33,484
4,442
2,388
60,391
7,531
60,162
30,690
4,109
2,301
55,656
6,135
63,545
27,537
4,003
1,764
57,914
6,052
61,935
29,026
3,954
1,782
8,100
1,808
25,209
1,907
900
272
11,636
1,931
35,247
3,185
1,494
740
13,576
1,857
43,888
4,850
2,286
1,101
9,605
1,890
57,069
5,323
2,033
1,107
8,545
2,181
55,372
5,221
1,963
1,053
8,628
2,116
53,507
5,203
1,996
1,622
8,065
1,940
53,125
5,215
1,665
1,157
• 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.
1985
1983
1. Remaining time to maturity,
2. Includes nonmonetary international and regional organizations,
A61
A62
International Statistics • February 1986
3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1
Billions of dollars, end of period
1984
1983
Area or country
1981
1985
1982
Sept.
Dec.
Mar.
June 7
Sept.
Dec.
Mar.
June
Sept.?
415.2
438.7
431.0
437.3
435.1
432.4'
411.9'
409.2'
411.0'
402^
403.9
175.5
13.3
15.3
12.9
9.6
4.0
3.7
5.5
70.1
10.9
30.2
179.7
13.1
17.1
12.7
10.3
3.6
5.0
5.0
72.1
10.4
30.2
168.8
12.6
16.2
11.6
9.9
3.6
4.9
4.2
67.8
8.9
29.0
168.0
12.4
16.3
11.3
11.4
3.5
5.1
4.3
65.4
8.3
29.9
166.0
11.0
15.9
11.7
11.2
3.4
5.2
4.3
65.1
8.6
29.7
157.9'
10.9
14.2
10.9
11.5
3.0
4.3
4.2
eo.e'
8.9
29.3
148.2'
9.8
14.3
10.0
9.7
3.4
3.5
3.9
57.5'
8.1
27.9
148.0'
8.8
14.1
9.0
10.1
3.9
3.2
3.9
60.(y
7.9'
27.2
152.8'
9.4
14.6
8.9
10.0
3.7
3.1
4.2
65.1'
9.0
24.8'
146.8'
9.0
13.6
9.6
8.5'
3.7
2.8'
4.0
65.V
8.0
21.9
153.2
9.5
14.9
9.8
8.4
3.4
3.1
4.1
68.1
7.5
24.3
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
28.4
1.9
2.3
1.7
2.8
3.1
1.1
6.6
1.4
2.1
2.8
2.5
33.7
1.9
2.4
2.2
3.0
3.3
1.5
7.5
1.4
2.3
3.7
4.4
34.3
1.9
3.3
1.8
2.9
3.2
1.4
7.1
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
37.2'
1.9
3.1
2.3
3.3
3.2
1.7
7.3
2.0
1.9
4.7
5.8'
36.4'
1.8
2.9
1.9
3.2
3.2
1.6
6.9
2.0
1.7
5.0
6.3'
33.9'
1.6
2.2
1.9
2.9
3.0
1.4
6.5
1.9
1.7
4.5
6.2'
33.0
1.6
2.1
1.8
2.9
2.9
1.4
6.4'
1.9
1.7
4.2
6.2
32.5'
1.6
1.9
1.8
2.9
2.9
1.3
5.9
2.0
1.8
3.9
6.4'
32.3
1.7
2.1
1.8
2.8
3.4
1.4
6.2
2.1
1.7
3.3
5.8
25 OPEC countries 2
26
Ecuador
27
Venezuela
28
Indonesia
29 Middle East countries
30 African countries
24.8
2.2
9.9
2.6
7.5
2.5
27.4
2.2
10.5
3.2
8.7
2.8
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
27.(V
2.1
9.5
4.3'
8.4
2.7
25.2'
2.1
9.2
4.CK
7.4
2.5
25.8'
2.2
9.3
3.9'
8.2
2.3
25.4'
2.2
9.3
3.8'
7.8
2.3
23.8'
2.3
9.3
3.6T
6.6'
2.2'
24.1
2.3
9.2
3.6
6.7
2.3
31 Non-OPEC developing countries
96.3
107.1
109.8
111.6
112.2
113.5'
112.7'
112.9'
111.8'
111.0'
111.1
9.4
19.1
5.8
2.6
21.6
2.0
4.1
8.9
22.9
6.3
3.1
24.5
2.6
4.0
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
4.4
9.2
25.4
6.7
3.0
26.2'
2.3
4.1
9.1
26.3
7.1
2.9
26.2'
2.2
3.9
8.7
26.3
7.0
2.9
26.(K
2.2
3.9
8.6
26.4
7.0
2.8
25.7
2.2
3.7
8.6
26.6
6.9
2.7
25.6
2.1
3.6
9.3
26.1
6.9
2.6
25.2
2.0
3.5
.2
5.3
.6
2.3
10.9
2.1
6.3
1.6
1.1
.2
5.2
.8
1.7
10.9
2.8
6.2
1.8
1.0
.3
5.3
1.0
1.9
11.3
2.9
6.2
2.2
1.0
.3
4.9
1.0
1.6
11.1
2.8
6.7
2.1
.9
.6
5.4'
1.0
1.9
11.3'
2.9'
6.3
1.9
1.1
.5
5.3'
1.1
1.7
10.5'
3.1'
5.9
1.8
l.C
.7
5.3'
1.0
1.8
10.9'
3.0'
6.0
1.8
1.2'
.7
5.4'
1.0
1.7
10^
2.9'
6.1
1.7
1.1
.3
5.5
1.0
2.3
10.3'
3.C
6.C
1.6'
l.C
1.1
5.2
1.2
1.5
10.6
2.9
6.1
1.7
1.1
1 Total
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
Other Latin America
Asia
China
Mainland
Taiwan
39
40
41
42
43
44
45
46
47
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.2
5.1
.3
2.1
9.4
1.7
6.0
1.5
1.0
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 3
1.1
.7
.2
2.3
1.2
.7
.1
2.4
1.4
.8
.1
2.4
1.5
.8
.1
2.3
1.4
.8
.1
2.2
1.4
.8
.1
1.9
1.2
.8
.1
1.9
1.2
.8
.1
2.1
1.1
.8
.1
2.2
1.0
.8
.1
2.0
1.0
.9
.1
2.0
52 Eastern Europe
53
U.S.S.R
54 Yugoslavia
55
Other
7.8
.6
2.5
4.7
6.2
.3
2.2
3.7
5.3
.2
2.3
2.8
5.3
.2
2.4
2.8
4.9
.2
2.3
2.5
4.9
.2
2.3
2.4
4.5
.2
2.3
2.1
4.4
.1
2.3
2.0
4.3
.2
2.2
1.9
4.3
.3
2.2
1.8
4.6
.2
2.5
1.9
56 Offshore banking centers
57 Bahamas
58 Bermuda
59 Cayman Islands and other British West Indies
60 Netherlands Antilles
61
Panama 4
62 Lebanon
63 Hong Kong
64
Singapore
65 Others 5
63.7
19.0
.7
12.4
3.2
7.7
.2
11.8
8.7
.1
66.8
19.0
.9
12.9
3.3
7.6
.1
13.9
9.2
.0
68.7
21.6
.8
10.5
4.1
5.7
.1
15.2
10.5
.1
70.5
21.8
.9
12.2
4.2
6.0
.1
15.0
10.3
.0
71.4
24.6
.7
12.0
3.3
6.3
.1
14.4
10.0
.0
74.6'
27.5
.7
12.2
3.3
6.6
.1
13.9'
10.3'
.0
67.4'
23.8'
1.0
11.1
3.1
5.7
.1
13.1'
9.5
.0
67.0'
21.5
.9
11.7
3.4
6.8
.1
12.8'
9.8
.0
66.&
21.6
.7
12.4'
3.3
5.7
.1
12.9'
10.0
.0
66.8'
21.9'
.9
12.4
3.2
5.5
.1
13.1'
9.7'
.0
61.2
16.8
.8
12.5
. 2.3
6.2
.0
13.2
9.4
.0
66 Miscellaneous and unallocated 6
18.8
17.9
16.9
17.0
16.3
17.4'
17.4'
17.3
17.1'
17.4'
17.8
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,
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
Data
A63
3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States1
Millions of dollars, end of period
1984
Type, and area or country
1982
981
1985
1983
Sept.
June
Mar.
Dec.
June
1 Total
28,618
27,512
25,236
34,269
30,759
28,808
25,594
24,456
2 Payable in dollars
3 Payable in foreign currencies
24,909
3,709
24,280
3,232
22,216
3,020
31,071
3,198
27,954
2,804
25,935
2,873
22,915
2,679
21,898
2,558
By type
4 Financial liabilities
Payable in dollars
5
6
Payable in foreign currencies
12,157
9,499
2,658
11,066
8,858
2,208
10,462
8,683
1,779
18,595
16,553
2,043
15,900
14,103
1,797
13,951
12,084
1,868
11,073
9,322
1,751
11,353
9,485
1,868
7 Commercial liabilities
8
Trade payables
9
Advance receipts and other liabilities . . .
16,461
10,818
5,643
16,446
9,438
7,008
14,774
7,765
7,009
15,674
7,897
7,776
14,859
6,900
7,959
14,857
6,990
7,867
14,521
7,052
7,469
13,103
5,854
7,249
15,409
1,052
15,423
1,023
13,533
1,241
14,518
1,155
13,852
1,007
13,851
1,006
13,593
928
12,413
690
6,825
471
709
491
748
715
3,565
6,501
505
783
467
711
792
3,102
5,742
302
843
502
621
486
2,839
7,335
359
900
571
595
563
4,097
6,679
428
910
521
595
514
3,463
6,798
471
995
489
578
569
3,389
6,100
298
896
506
602
541
3,028
5,893
348
865
474
597
566
2,801
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 countries 2 ..
30
Africa
31
32
33
34
35
36
37
38
39
40
Oil-exporting countries 3
All other 4
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
963
746
764
735
825
863
840
850
3,356
1,279
7
22
1,241
102
98
2,751
904
14
28
1,027
121
114
2,596
751
13
32
1,041
213
124
9,038
3,642
13
25
4,567
237
124
6,800
2,606
11
33
3,271
260
130
4,576
1,423
13
35
2,103
367
137
2,652
853
25
29
1,521
25
3
3,106
1,107
10
27
1,734
32
3
976
792
75
1,039
715
169
1,332
898
170
1,462
1,013
180
1,566
1,085
144
1,682
1,121
147
1,460
945
116
1,478
877
147
14
0
17
0
19
0
16
0
16
1
14
0
12
0
14
0
24
12
10
9
14
19
10
13
3,770
71
573
545
220
424
880
3,831
52
598
468
346
367
1,027
3,245
62
437
427
268
241
732
3,409
45
525
501
265
246
794
3,961
34
430
558
239
405
1,133
3,987
48
438
619
245
257
1,082
3,519
37
401
590
272
233
752
3,485
53
425
431
284
353
740
897
1,495
1,841
1,840
1,906
1,975
1,727
1,494
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,044
2
67
67
2
340
276
1,570
16
117
60
32
436
642
1,473
1
67
44
6
585
432
1,705
17
124
31
5
568
630
1,758
1
110
68
8
641
628
1,871
7
114
124
32
586
636
1,717
11
112
101
21
654
395
1,244
12
77
90
1
492
309
48
49
50
Asia
japan
Middle East oil-exporting countries 2 ' 5 .
9,384
1,094
7,008
8,144
1,226
5,503
6,741
1,247
4,178
6,989
1,235
4,190
5,569
1,429
2,364
5,307
1,256
2,372
5,721
1,241
2,786
5,259
1,232
2,396
51
52
Africa
Oil-exporting countries 3
703
344
753
277
553
167
684
217
597
251
588
233
765
294
633
265
53
All other 4
664
651
921
1,046
1,068
1,128
1,070
988
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
3.23
International Statistics • February 1986
CLAIMS ON UNAFFILIATED FOREIGNERS
United States 1
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1984
Type, and area or country
1981
1982
June
1 Total
1985
1983
Sept.
Dec.
Mar.
June
36,185
28,725
34,790
32,099
30,626
29,570
28,415
26,554
32,582
3,603
26,085
2,640
31,695
3,0%
29,118
2,982
27,835
2,792
26,973
2,597
25,843
2,571
23,935
2,619
By type
4 Financial claims
5 Deposits
6
Payable in dollars
7
Payable in foreign currencies
Other
financial claims
8
9
Payable in dollars
10
Payable in foreign currencies
21,142
15,081
14,456
625
6,061
3,599
2,462
17,684
13,058
12,628
430
4,626
2,979
1,647
23,660
18,375
17,872
503
5,284
3,328
1,956
21,646
16,498
15,977
522
5,148
3,387
1,761
20,227
15,419
14,979
439
4,808
3,116
1,693
18,980
14,347
13,927
420
4,633
3,190
1,442
18,118
14,126
13,629
497
3,992
2,427
1,565
16,067
12,183
11,637
546
3,884
2,403
1,480
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
15,043
14,007
1,036
11,041
9,994
1,047
11,131
9,721
1,410
10,454
9,111
1,343
10,399
8,8%
1,503
10,591
9,110
1,481
10,297
8,784
1,513
10,487
9,121
1,367
14
15
14,527
516
10,478
563
10,494
637
9,754
699
9,740
659
9,856
735
9,787
510
9,895
592
4,596
43
285
224
50
117
3,546
4,873
15
134
178
97
107
4,064
6,452
37
150
163
71
38
5,781
6,485
37
151
166
158
61
5,660
5,703
15
151
192
62
64
4,988
5,643
15
126
224
66
66
4,745
5,691
29
86
196
72
46
4,974
5,293
15
46
168
37
16
4,737
2 Payable in dollars
3 Payable in foreign currencies
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
6,755
4,377
5,974
5,302
4,492
4,006
3,945
3,790
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
8,812
3,650
18
30
3,971
313
148
7,546
3,279
32
62
3,255
274
139
10,164
4,745
102
53
4,163
293
134
8,615
3,269
11
83
4,415
230
124
8,859
3,392
5
84
4,495
232
128
8,045
3,270
6
100
3,905
215
125
7,427
2,992
4
98
3,745
201
101
6,158
2,156
5
%
3,341
205
100
31
32
33
Asia
Japan
Middle East oil-exporting countries 2
758
366
37
698
153
15
764
297
4
977
321
8
900
371
7
%1
353
13
856
509
6
620
281
6
34
35
Africa
Oil-exporting countries 3
173
46
158
48
147
55
158
35
160
37
210
85
101
32
111
25
48
31
159
109
113
114
97
95
5,405
234
776
561
299
431
985
3,826
151
474
357
350
360
811
3,670
135
459
349
334
317
809
3,555
142
408
447
306
250
812
3,570
128
411
370
303
289
891
3,812
138
440
374
340
271
1,063
3,360
149
375
358
340
253
885
3,707
224
410
373
301
376
952
36
37
38
39
40
41
42
43
All other 4
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
967
633
829
933
1,026
1,021
1,248
1,065
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
3,479
12
223
668
12
1,022
424
2,526
21
261
258
12
775
351
2,695
8
190
493
7
884
272
2,042
4
89
310
8
577
241
1,976
14
88
219
10
595
245
1,973
8
115
214
7
583
206
1,973
9
164
210
6
493
192
2,137
11
65
193
6
616
224
52
53
54
Asia
Japan
Middle East oil-exporting countries 2
3,959
1,245
905
3,050
1,047
751
3,063
1,114
737
3,091
1,183
710
2,895
1,089
703
3,086
1,191
688
2,985
1,154
666
2,720
%8
593
55
56
Africa
Oil-exporting countries 3
772
152
588
140
588
139
536
128
595
135
470
134
510
141
522
139
57
All other 4
461
417
286
297
338
229
221
337
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
Securities
Holdings
and Transactions
A65
3.24 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1985
1985
Transactions, and area or country
1984
1983
JanOct.
Apr.
May
June
July
Aug.
U.S. corporate securities
STOCKS
1
2
Foreign purchases
Foreign sales
69,770
64,360
60,704
63,628
62,257
60,823
5,147
5,104
6,520
6,423
6,471
6,069
7,181
6,522
6,366
5,721
4,802
4,690
7,232
6,560
3
Net purchases, or sales ( - )
5,410
-2,924
1,434
44
97
402
659
645
112
673
4
Foreign countries
5,312
-3,039
1,423
35
140
404
559
644
163
644
3,979
-97
1,045
-109
1,325
1,799
1,151
529
-808
395
42
24
-2,975
-405
-50
-315
-1,490
-647
1,672
493
-2,006
-372
-23
171
-305
-252
177
-284
-454
298
332
1,153
186
-46
13
91
-160
24
23
16
-48
-191
34
169
-90
91
-1
-6
-285
17
39
-51
-90
-219
7
247
53
101
-8
25
72
26
5
-86
49
49
-62
132
106
174
13
-31
336
-3
126
42
38
104
66
119
53
-23
25
-16
364
-41
76
18
-28
295
68
109
35
58
9
1
170
-120
29
25
-87
293
34
-35
54
-26
0
-34
554
-82
235
33
125
210
-31
78
8
-16
-4
55
98
115
11
8
-44
-1
100
1
-51
28
24,000
23,097
39,853
26,612
65,342
34,673
4,562
3,135
6,789
3,697
5,319
3,943
8,502
4,254
5,547'
3,741
7,482
3,632
7,401
2,783
5
6
7
8
9
10
11
17.
13
14
15
16
17
Netherlands
United Kingdom
Canada
Latin America and Caribbean
Middle East1
Other Asia
Africa
Other countries
Nonmonetary international and
regional organizations
BONDS 2
18
19
Foreign sales
20
Net purchases, or sales ( - )
903
13,241
30,669
1,427
3,092
1,376
4,249
l,806 r
3,850
4,618
Foreign countries
888
12,944
30,763
1,402
3,230
1,243
3,597
2,118'
4,176
4,772
909
-89
344
51
583
434
123
100
-1,161
865
0
52
11,793
207
1,731
93
644
8,520
-76
390
-1,026
1,862
1
0
27,956
229
701
52
2,176
24,055
74
302
-1,993
4,392
7
25
1,622
18
162
-9
65
1,294
0
-83
-509
381
0
-9
2,752
0
-17
-11
71
2,398
44
178
-119
372
2
1,199
-35
13
-9
93
1,039
4
27
-507
518
0
1
3,210
-2
182
-2
492
2,391
-4
39
-265
610
3
3
1,834'
169
103
25
243
1,368'
-24
-81
-80
465
1
3
3,949
42
152
-4
154
3,519
-31
-64
-187
508
0
1
3,665
8
308
0
249
3,037
42
81
11
966
1
6
15
297
-95
25
-138
133
651
-312
-326
-154
21
V
73
24
75
76
7,7
78
79
30
31
32
33
34
Germany
United Kingdom
Latin America and Caribbean
Middle East1
Other Asia
Africa
Other countries
Nonmonetary international and
regional organizations
I
Foreign securities
35
36
37
Stocks, net purchases, or sales ( - )
Foreign purchases
Foreign sales
-3,765
13,281
17,046
-1,219
14,597
15,816
-3,210
16,069
19,278
-145
1,446
1,591
100
1,764
1,665
-174
1,632
1,806
-550
1,580
2,130
-213
1,689
1,902
-224
1,538
1,762
-72
2,172
2,244
38
39
40
Bonds, net purchases, or sales ( - )
-3,239
36,333
39,572
-4,131
57,312
61,443
-4,019
67,135
71,153
-674
5,674
6,348
-1,059
7,448
8,507
-261
6,691
6,952
-589
7,147
7,736
305'
6,959'
6,654
-496
8,255
8,751
-690
8,538
9,228
41
Net purchases, or sales (—), of stocks and bonds . . . .
-7,004
-5,350
-7,228
-819
-959
-434
-1,139
92'
-720
-762
Foreign countries
-6,559
-4,961
-7,734
-728
-1,123
-386
-1,368
302'
-955
-750
Latin America and Caribbean
-5,492
-1,328
1,120
-855
141
-144
-8,740
404
2,472
1,252
-107
-242
-8,331
-1,421
1,731
202
-2,024
-96
810
201
2
-15
-680
-157
73
353
13
14
-1,185
-783
150
90
-827
22
136
-18
-5
-36
-258'
36
178
387
9
-51
-764
1
191
-400
-2
19
-579
-26
48
-193
-5
6
-445
-389
505
-91
164
-49
229
235
-13
42
43
44
45
46
47
48
49
Foreign sales
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).
2. Includes state and local government securities, and securities of U.S.
government agencies and corporations. Also includes issues of new debt securi-
-4
418
18
13
-210
ties sold abroad by U.S. corporations organized to finance direct investments
abroad.
A66
International Statistics • February 1986
3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES
Foreign Transactions
Millions of dollars
1985
Country or area
1983
1985
1984
Jan.Oct.
Apr.
May
June
July
Aug.
Sept.
Oct.?
Transactions, net purchases or sales ( - ) during period 1
1 Estimated total2
3,693
21,447
21,193
-4,294
3,069
5,757
4,786
-3,345
6,902
2 Foreign countries 2
3,162
16,444
24,2%
2,219
4,337
5,757
5,364
1,027
4,357
-112
6,226
-431
2,450
375
170
-421
1,966
2,118
0
699
11,081
289
2,958
454
46
635
5,234
1,466
0
1,526
4,786
492
1,720
203
1,059
1,030
-1,644
1,926
0
248
1,798
80
293
-7
30
183
174
1,045
0
334
686
101
838
-73
157
-135
-865
663
0
113
1,025
17
415
10
775
143
-96
-239
0
6
975
21
725
148
119
-21
-761
743
0
7
953
92
937
386
-89
72
-82
-363
0
-144
958
49
294
127
-33
25
283
214
0
106
-691
10
17
-126
-41
116
-735
68
0
138
-212
-124
60
-149
-3,535
2,315
3
-17
1,413
14
528
871
2,377
6,062
-67
114
3,433
203
1,663
1,566
15,389
15,289
102
337
467
10
179
278
-343
1,731
13
-51
581
-9
463
126
2,891
1,060
57
9
205
80
123
2
4,516
2,666
10
-6
156
0
-7
163
4,307
3,752
10
-91
524
33
95
397
-416
875
-1
111
562
2
556
4
2,594
2,253
0
137
125
91
110
-76
244
1,630
9
63
535
218
0
5,001
4,610
0
-3,103
-3,370
2
2,075
1,792
-3
-1,268
-1,057
5
-1
-105
0
-577
-219
0
-4,372
-4,400
0
2,545
1,883
-1
-530
-430
0
3,162
779
2,382
16,444
515
15,930
24,2%
5,987
18,308
2,219
-625
2,844
4,337
3,530
807
5,757
2,713
3,045
5,364
1,788
3,575
1,027
104
923
4,357
1,064
3,293
-112
-1,205
1,093
-5,419
-1
6,277
-101
-1,907
4
-851
0
52
0
1,422
0
-1
0
-1,132
0
-838
0
-817
4
3 Europe 2
4
Belgium-Luxembourg
5 Germany 2
6
Netherlands
7 Sweden
8 Switzerland 2
9
United Kingdom
10 Other Western Europe
11 Eastern Europe
12 Canada
13 Latin America and Caribbean
14 Venezuela
15 Other Latin America and Caribbean
16 Netherlands Antilles
17
18 Japan
19
20 All other
21 Nonmonetary international and regional organizations
22 International
23 Latin American regional
MEMO
24 Foreign countries 2
75 Official institutions
26 Other foreign 2
77
28
Oil-exporting countries
Middle East 3
Africa 4
1. Estimated official and private transactions in marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based on
monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
2. Includes U.S. Treasury notes publicly issued to private foreign residents
denominated in foreign currencies.
-643
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 B A N K S
Percent per annum
Rate on Nov. 30, 1985
Percent
Austria..
Belgium.
Brazil...
Canada..
Denmark
4.0
8.75
49.0
9.10
7.0
Country
Month
effective
Aug. 1985
Nov. 1985
Mar. 1981
Nov. 1985
Oct. 1983
France 1
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, 1985
Rate on Nov. 30, 1985
Country
Country
Percent
Month
effective
8.75
4.0
15.0
5.0
5.0
Nov. 1985
Aug. 1984
Nov. 1985
Oct. 1983
Aug. 1985
Norway
Switzerland
United Kingdom 2 .
Venezuela
Percent
Month
effective
8.0
4.0
June 1983
Mar. 1983
8.0
Oct. 1985
or makes advances against eligible commercial paper and/or government commercial banks or brokers. For countries with more than one rate applicable to such
discounts or advances, the rate shown is the one at which it is understood the
central bank transacts the largest proportion of its credit operations.
F O R E I G N SHORT-TERM I N T E R E S T R A T E S
Percent per annum, averages of daily figures
1985
Country, or type
1
2
3
4
5
6
7
8
9
10
1982
1983
1984
May
June
July
Aug.
Sept.
Oct.
Nov.
Eurodollars
United Kingdom
Canada
Germany
Switzerland
12.24
12.21
14.38
8.81
5.04
9.57
10.06
9.48
5.73
4.11
10.75
9.91
11.29
5.96
4.35
8.13
12.61
9.77
5.87
5.15
7.60
12.38
,9.58
5.66
5.14
7.89
12.01
9.33
5.31
5.07
8.02
11.42
9.16
4.75
4.64
8.14
11.49
9.10
4.64
4.59
8.08
11.49
8.73
4.77
4.53
8.02
11.50
8.85
4.82
4.07
Netherlands
France
Italy
Belgium
Japan
8.26
14.61
19.99
14.10
6.84
5.58
12.44
18.95
10.51
6.49
6.08
11.66
17.08
11.41
6.32
6.90
10.15
14.91
9.35
6.26
6.58
10.18
15.00
8.96
6.30
6.29
9.97
14.37
8.95
6.29
5.80
9.79
14.36
9.50
6.30
5.72
9.57
13.95
9.33
6.31
5.89
9.29
14.16
8.97
6.47
5.90
8.95
14.29
8.66
7.29
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 • February 1986
FOREIGN E X C H A N G E RATES
Currency units per dollar
1985
Country/currency
1982
1983
1984
June
July
Aug.
Sept.
Oct.
Nov.
Australia/dollar 1
Austria/schilling
Belgium/franc
Brazil/cruzeiro
Canada/dollar
China, P.R./yuan
Denmark/krone
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
87.937
20.005
57.749
1841.50
1.2953
2.3308
10.354
66.51
21.532
61.719
5786.00
1.3676
2.8693
10.9962
69.95
20.446
58.626
6236.19
1.3526
2.8809
10.456
70.70
19.632
56.543
6714.00
1.3575
2.9093
10.1459
68.96
19.949
57.395
7453.33
1.3703
2.9722
10.2906
70.25
18.569
53.618
8203.57
1.3667
3.0782
9.5880
67.74
18.236
52.474
8913.95
1.3765
3.2086
9.3918
8
9
10
11
12
13
14
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee
Ireland/pound 1
4.8086
6.5793
2.428
66.872
6.0697
9.4846
142.05
5.5636
7.6203
2.5539
87.895
7.2569
10.1040
124.81
6.0007
8.7355
2.8454
112.73
7.8188
11.348
108.64
6.3660
9.3414
3.0636
136.00
7.7698
12.441
102.19
6.0798
8.8513
2.9083
131.75
7.7527
12.031
107.79
5.9464
8.5323
2.7937
131.75
7.7906
11.898
111.43
6.0140
8.6599
2.8381
136.74
7.8043
12.126
109.55
5.6836
8.0641
2.6446
145.74
7.7908
12.033
117.00
5.5709
7.9095
2.5954
153.037
7.8042
12.1010
119.19
15
16
17
18
19
20
21
Italy /lira
Japan/yen
Malaysia/ringgit
Netherlands/guilder
New Zealand/dollar 1
Norway/krone
Portugal/escudo
1354.00
249.06
2.3395
2.6719
75.101
6.4567
80.101
1519.30
237.55
2.3204
2.8543
66.790
7.3012
111.610
1756.10
237.45
2.3448
3.2083
57.837
8.1596
147.70
1953.92
248.84
2.4685
3.4535
45.949
8.8255
176.15
1900.33
241.14
2.4696
3.2732
49.826
8.4338
169.77
1873.51
237.46
2.4644
3.1429
53.564
8.2487
167.34
1903.42
236.53
2.4841
3.1921
53.285
8.3337
172.5
1785.43
214.68
2.4529
2.9819
56.931
7.9099
164.59
1753.72
204.07
2.4341
2.9230
57.230
7.8076
162.963
22
23
24
25
26
27
28
29
30
31
Singapore/dollar
South Africa/rand 1
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound 1
2.1406
92.297
731.93
110.09
20.756
6.2838
2.0327
2.1136
89.85
776.04
143.500
23.510
7.6717
2.1006
2.2291
50.54
875.00
173.42
27.433
8.8565
2.5721
39.857
27.433
128.08
2.2109
51.07
876.46
167.97
27.327
8.4703
2.4060
40.136
27.053
138.07
2.2191
43.07
885.09
164.49
27.377
8.3106
2.2962
40.501
26.889
138.40
2.2268
39.49
847.46
168.91
27.430
8.3907
2.3749
40.465
27.050
136.42
2.1387
38.38
894.49
161.712
27.421
7.9557
2.1692
40.195
26.569
142.15
2.1084
37.57
893.35
159.658
27.449
7.8127
2.1306
39.981
26.315
143.96
147.71
140.94
137.55
139.14
130.71
128.08
1
2
3
4
5
6
7
n.a.
n.a.
23.014
174.80
22.991
151.59
2.1325
69.534
807.91
160.78
25.428
8.2706
2.3500
39.633
23.582
133.66
116.57
125.34
138.19
MEMO
32
United States/dollar 2
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
o f t h e U . S . D o l l a r : R e v i s i o n " o n p . 7 0 0 o f t h e A u g u s t 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
Symbols
c
e
p
r
*
and
PRESENTATION
Abbreviations
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when
about half of the figures in that column are changed.)
Amounts insignificant in terms of the last decimal place
shown in the table (for example, less than 500,000
when the smallest unit given is millions)
General
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed
issues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
STATISTICAL
List Published
obligations of the Treasury. "State and local government"
also includes municipalities, special districts, and other political subdivisions.
In some of the tables details do not add to totals because of
rounding.
RELEASES
Semiannually,
with Latest
Bulletin
Reference
Issue
Anticipated schedule of release dates for periodic releases
Page
December 1985 ALL
SPECIAL TABLES
Published
Irregulary,
with Latest
Bulletin
Reference
Assets and liabilities of commercial banks, March 31, 1983
Assets and liabilities of commercial banks, June 30, 1983
Assets and liabilities of commercial banks, September 30, 1983
Assets and liabilities of commercial banks, December 31, 1983
Assets and liabilities of U.S. branches and agencies of foreign banks,
Assets and liabilities of U.S. branches and agencies of foreign banks,
Assets and liabilities of U.S. branches and agencies of foreign banks,
Assets and liabilities of U.S. branches and agencies of foreign banks,
Terms of lending at commercial banks, February 1985
Terms of lending at commercial banks, May 1985
Terms of lending at commercial banks, August 1985
September 30, 1984
December 31, 1984
March 31, 1985
June 30, 1985
August
December
March
June
April
August
November
January
June
August
November
1983
1983
1984
1984
1985
1985
1985
1986
1985
1985
1985
A70
A68
A68
A66
A74
A76
A76
A70
A70
A70
A70
A70
Federal Reserve Board of Governors
PAUL A . VOLCKER, Chairman
PRESTON MARTIN, Vice Chairman
OFFICE OF BOARD
HENRY C. WALLICH
J. CHARLES PARTEE
MEMBERS
JOSEPH R . COYNE, Assistant to the Board
DONALD J . W I N N , Assistant to the Board
STEVEN M . ROBERTS, Assistant to the Chairman
ANTHONY F . COLE, Special Assistant to the Board
BOB STAHLY MOORE, Special Assistant to the Board
NAOMI P . SALUS, Special Assistant to the Board
LEGAL
STEPHEN H . AXILROD, Staff Director
DONALD L . K O H N , Deputy Staff Director
STANLEY J . SIGEL, Assistant to the Board
NORMAND R . V . BERNARD, Special Assistant
DIVISION OF RESEARCH AND
DIVISION
MICHAEL BRADFIELD, General Counsel
J . VIRGIL MATTINGLY, J R . , Deputy General Counsel
RICHARD M . ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
RICKI TIGERT, Assistant General Counsel
MARYELLEN A . BROWN, Assistant to the General Counsel
OFFICE OF THE SECRETARY
WILLIAM W . WILES, Secretary
BARBARA R . LOWREY, Associate Secretary
JAMES M C A F E E , Associate Secretary
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
to the Board
STATISTICS
JAMES L . KICHLINE, Director
EDWARD C . E T T I N , Deputy Director
MICHAEL J . PRELL, Deputy Director
JOSEPH S . ZEISEL, Deputy Director
JARED J . ENZLER, Associate Director
DAVID E . LINDSEY, Associate Director
ELEANOR J . STOCKWELL, Associate Director
THOMAS D . SIMPSON, Deputy Associate Director
LAWRENCE SLIFMAN, Deputy Associate Director
HELMUT F . W E N D E L , Deputy Associate Director
MARTHA BETHEA, Assistant Director
ROBERT M . FISHER, Assistant Director
DAVID B . HUMPHREY, Assistant Director
SUSAN J . LEPPER, Assistant Director
RICHARD D . PORTER, Assistant Director
PETER A . TINSLEY, Assistant Director
LEVON H . GARABEDIAN, Assistant Director
(Administration)
GRIFFITH L . GARWOOD, Director
JERAULD C . KLUCKMAN, Associate Director
GLENN E . LONEY, Assistant Director
DOLORES S . SMITH, Assistant Director
DIVISION OF INTERNATIONAL
FINANCE
EDWIN M . TRUMAN, Director
LARRY J . PROMISEL, Senior Associate Director
CHARLES J . SIEGMAN, Senior Associate Director
DAVID H . HOWARD, Deputy Associate Director
ROBERT F . GEMMILL, Staff Adviser
PETER HOOPER I I I , Assistant Director
KAREN H . JOHNSON, Assistant Director
RALPH W . SMITH, J R . , Assistant Director
DIVISION OF BANKING
SUPERVISION AND REGULATION
WILLIAM TAYLOR, Director
THOMAS E . CIMENO, J R . , Deputy Director'
2
WELFORD S . FARMER, Deputy Director
FREDERICK R . D A H L , Associate Director
DON E . K L I N E , Associate Director
FREDERICK M . STRUBLE, Associate Director
STEPHEN C . SCHEMERING, Deputy Associate
RICHARD SPILLENKOTHEN, Deputy Associate
HERBERT A . BIERN, Assistant Director
ANTHONY CORNYN, Assistant Director
JAMES I . GARNER, Assistant Director
JAMES D . GOETZINGER, Assistant Director
ROBERT S . PLOTKIN, Assistant Director
SIDNEY M . SUSSAN, Assistant Director
LAURA M . HOMER, Securities Credit Officer
OFFICE OF STAFF DIRECTOR FOR
MONETARY AND FINANCIAL POLICY
Director
Director
1. On loan from the Federal Reserve Bank of Boston.
2. On loan from the Federal Reserve Bank of Richmond.
and Official Staff
EMMETT J. RICE
OFFICE OF
STAFF DIRECTOR FOR
MARTHA R . SEGER
MANAGEMENT
S . DAVID FROST, Staff Director
EDWARD T . M U L R E N I N , Assistant Staff Director
CHARLES L . HAMPTON, Senior Technical Adviser
PORTIA W . THOMPSON, Equal Employment Opportunity
Programs Officer
DIVISION OF
PERSONNEL
DAVID L . SHANNON, Director
JOHN R . W E I S , Assistant Director
CHARLES W . W O O D , Assistant Director
OFFICE OF THE
CONTROLLER
GEORGE E . LIVINGSTON, Controller
BRENT L . B O W E N , Assistant Controller
DIVISION OF SUPPORT
SERVICES
ROBERT E . FRAZIER, Director
WALTER W . KREIMANN, Associate Director
GEORGE M . LOPEZ, Assistant Director
OFFICE OF COMPUTING AND
SERVICES
ALLEN E . B E U T E L ,
INFORMATION
Executive Director
DIVISION OF COMPUTING
SERVICES
BRUCE M . BEARDSLEY, Director
THOMAS C . J U D D , Assistant Director
ELIZABETH B . RIGGS, Assistant Director
ROBERT J . ZEMEL, Assistant Director
DIVISION OF INFORMATION
WILLIAM
STEPHEN
RICHARD
WILLIAM
RICHARD
SERVICES
R . JONES, Director
R . MALPHRUS, Assistant Director
J . MANASSERI, Assistant Director
C . SCHNEIDER, J R . , Assistant Director
C . STEVENS, Assistant Director
OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK ACTIVITIES
THEODORE E . ALLISON,
Staff Director
DIVISION OF FEDERAL
BANK OPERATIONS
RESERVE
CLYDE H . FARNSWORTH, J R . , Director
ELLIOTT C . M C E N T E E , Associate Director
DAVID L . ROBINSON, Associate Director
C . WILLIAM SCHLEICHER, J R . , Associate Director
WALTER ALTHAUSEN, Assistant Director
CHARLES W . B E N N E T T , Assistant Director
A N N E M . D E B E E R , Assistant Director
JACK DENNIS, J R . , Assistant Director
EARL G . HAMILTON, Assistant Director
WILLIAM E . PASCOE I I I , Assistant Director
JOHN H . PARRISH, Assistant Director
FLORENCE M . Y O U N G , Adviser
72 Federal Reserve Bulletin • February 1986
Federal Open Market Committee
FEDERAL OPEN MARKET
PAUL A . VOLCKER,
COMMITTEE
Chairman
ROBERT P . BLACK
ROBERT P . FORRESTAL
SILAS KEEHN
E . GERALD CORRIGAN,
PRESTON MARTIN
J . CHARLES PARTEE
EMMETT J . RICE
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 . KICHLINE, Economist
EDWIN M . TRUMAN, Economist (International)
J . ALFRED BROADDUS, Associate Economist
PETER D . STERNLIGHT, Manager
SAM Y . CROSS, Manager for
FEDERAL ADVISORY
RICHARD G . DAVIS, Associate Economist
DONALD L . KOHN, Associate Economist
DAVID E . LINDSEY, Associate Economist
MICHAEL J . PRELL, Associate Economist
KARL A . SCHELD, Associate Economist
CHARLES J . SIEGMAN, Associate Economist
SHEILA L . TSCHINKEL, Associate Economist
for Domestic Operations, System Open Market Account
Foreign Operations, System Open Market Account
COUNCIL
ROBERT L . NEWELL, First District
JOHN F. MCGILLICUDDY, Second District
GEORGE A . BUTLER, Third District
JULIEN L . MCCALL, Fourth District
JOHN G . MEDLIN, JR., Fifth District
BENNETT A . BROWN, Sixth District
MARTHA R . SEGER
HENRY C . WALLICH
HAL C. KUEHL, Seventh District
WILLIAM H . BOWEN, Eighth District
DEWALT H . ANKENY, JR., Ninth District
F. PHILLIPS GILTNER, Tenth District
NAT S. ROGERS, Eleventh District
G . ROBERT TRUEX, JR., Twelfth District
HERBERT V . PROCHNOW, Secretary
WILLIAM J. KORSVIK, Associate Secretary
Vice Chairman
A73
and Advisory Councils
CONSUMER ADVISORY
COUNCIL
MARGARET M. MURPHY, Columbia, Maryland, Chairman
LAWRENCE S. OKINAGA, Honolulu, Hawaii, Vice Chairman
RACHEL G. BRATT, Medford, Massachusetts
JONATHAN BROWN, Washington, D.C.
MICHAEL S. CASSIDY, New York, New York
THERESA FAITH CUMMINGS, Springfield, Illinois
NEIL J. FOGARTY, Jersey City, New Jersey
STEVEN M. GEARY, Jefferson City, Missouri
KENNETH HALL, Jackson, Mississippi
STEVEN W. HAMM, Columbia, South Carolina
ROBERT J. HOBBS, Boston, Massachusetts
ROBERT W. JOHNSON, West Lafayette, Indiana
JOHN M. KOLESAR, Cleveland, Ohio
EDWARD N. LANGE, Seattle, Washington
FRED S. MCCHESNEY, Atlanta, Georgia
THRIFT INSTITUTIONS
ADVISORY
H.
DEIHL,
ELLIOTT G . CARR, Harwich Port, Massachusetts
TODD COOKE, Philadelphia, Pennsylvania
HAROLD W . GREENWOOD, JR., Minneapolis, Minnesota
TED L. SPURLOCK, New York, New York
MEL STILLER, Boston, Massachusetts
CHRISTOPHER J . SUMNER, Salt Lake City, Utah
EDWARD J . WILLIAMS, Chicago, Illinois
MERVIN WINSTON, Minneapolis, Minnesota
MICHAEL ZOROYA, St. Louis, Missouri
COUNCIL
RICHARD
M.
FREDERICK H . MILLER, Norman, Oklahoma
ROBERT F . MURPHY, Detroit, Michigan
HELEN NELSON, Mill Valley, California
SANDRA PARKER, Richmond, Virginia
JOSEPH L. PERKOWSKI, Centerville, Minnesota
BRENDA L. SCHNEIDER, Detroit, Michigan
JANE SHULL, Philadelphia, Pennsylvania
Los Angeles, California, President
JOHN A. HARDIN, Rock Hill, South Carolina
FRANCES LESNIESKI, East Lansing, Michigan
MICHAEL R. WISE, Denver, Colorado
A74
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THE FEDERAL RESERVE ACT, as amended through August 31,
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REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.
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A
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THE U . S . ECONOMY IN AN INTERDEPENDENT WORLD: A
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REMARKS BY CHAIRMAN PAUL A . VOLCKER, AT X I I I AMERICAN-GERMAN BIENNIAL CONFERENCE, March 1985.
REMARKS BY CHAIRMAN PAUL A . VOLCKER, TO THE EMPIRE
CLUB OF CANADA AND THE CANADIAN CLUB OF TO-
RONTO, October 28, 1985.
A75
CONSUMER EDUCATION PAMPHLETS
Short pamphlets suitable for classroom use. Multiple copies
available without charge.
132. TIME-SERIES STUDIES OF THE RELATIONSHIP BETWEEN EXCHANGE RATES AND INTERVENTION: A
REVIEW OF THE TECHNIQUES AND LITERATURE, b y
Kenneth Rogoff. October 1983. 15 pp.
Alice in Debitland
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
The Equal Credit Opportunity Act and Business Credit
The Equal Credit Opportunity Act and . . . Credit Rights in
Housing
Fair Credit Billing
Federal Reserve Glossary
Guide to Federal Reserve Regulations
How to File A Consumer Credit Complaint
If You Borrow To Buy Stock
If You Use A Credit Card
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
Federal Reserve Banks
Organization and Advisory Committees
U.S. Currency
What Truth in Lending Means to You
133. RELATIONSHIPS AMONG EXCHANGE RATES, INTERVENTION, AND INTEREST RATES: A N EMPIRICAL IN-
VESTIGATION, by Bonnie E. Loopesko. November
1983. Out of print.
134. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET
INTERVENTION: A REVIEW OF THE LITERATURE, b y
Ralph W. Tryon. October 1983. 14 pp.
135. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET
INTERVENTION: APPLICATIONS TO CANADA, GERMA-
NY, AND JAPAN, by Deborah J. Danker, Richard A.
Haas, Dale W. Henderson, Steven A. Symansky, and
Ralph W. Tryon. April 1985. 27 pp.
136. THE EFFECTS OF FISCAL POLICY ON THE U . S . ECONO-
MY, by Darrell Cohen and Peter B. Clark. January
1984. 16 pp. Out of print.
137. THE IMPLICATIONS FOR BANK MERGER POLICY OF
FINANCIAL DEREGULATION, INTERSTATE BANKING,
AND FINANCIAL SUPERMARKETS, by Stephen A.
Rhoades. February 1984. Out of print.
138. ANTITRUST LAWS, JUSTICE DEPARTMENT GUIDELINES, AND THE LIMITS OF CONCENTRATION IN L O CAL BANKING MARKETS, by James Burke. June 1984.
14 pp.
STAFF STUDIES: Summaries
Only Printed in the
Bulletin
Studies and papers on economic and financial subjects that
are of general interest. Requests to obtain single copies of
the full text or to be added to the mailing list for the series
may be sent to Publications Services.
139. SOME IMPLICATIONS OF FINANCIAL INNOVATIONS IN
THE UNITED STATES, by Thomas D. Simpson and
Patrick M. Parkinson. August 1984. 20 pp.
140. GEOGRAPHIC MARKET DELINEATION: A REVIEW OF
THE LITERATURE, by John D. Wolken. November
1984. 38 pp.
141. A COMPARISON OF DIRECT DEPOSIT AND CHECK PAYMENT COSTS, by William Dudley. November 1984. 15
pp.
Staff Studies 115-125 are out of print.
142. MERGERS AND ACQUISITIONS
BANKS, 1960-83, by Stephen A .
BY
COMMERCIAL
Rhoades. December
1984. 30 pp.
114. MULTIBANK HOLDING COMPANIES: RECENT EVIDENCE ON COMPETITION AND PERFORMANCE IN
BANKING MARKETS, by Timothy J. Curry and John T.
Rose. Jan. 1982. 9 pp.
126. DEFINITION AND MEASUREMENT OF EXCHANGE MAR-
KET INTERVENTION, by Donald B. Adams and Dale
W. Henderson. August 1983. 5 pp.
127. U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: JANUARY-MARCH 1975, by Margaret L .
Greene. August 1984. 16 pp.
128. U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: SEPTEMBER 1977-DECEMBER 1979, b y M a r -
garet L. Greene. October 1984. 40 pp.
129. U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: OCTOBER I98O-OCTOBER 1981, by Margaret
L. Greene. August 1984. 36 pp.
130. EFFECTS OF EXCHANGE RATE VARIABILITY ON INTERNATIONAL TRADE AND OTHER ECONOMIC VARIABLES: A REVIEW OF THE LITERATURE, by Victoria S.
Farrell with Dean A. DeRosa and T. Ashby McCown.
January 1984. Out of print.
131. CALCULATIONS OF PROFITABILITY FOR U . S . DOLLARDEUTSCHE MARK INTERVENTION, by Laurence R.
Jacobson. October 1983. 8 pp.
143. COMPLIANCE COSTS AND CONSUMER BENEFITS OF
THE ELECTRONIC F U N D TRANSFER ACT: RECENT
SURVEY EVIDENCE, by Frederick J. Schroeder. April
1985. 23 pp.
144. SCALE ECONOMIES IN COMPLIANCE COSTS FOR CONSUMER CREDIT REGULATIONS: THE TRUTH IN LENDING AND EQUAL CREDIT OPPORTUNITY LAWS, b y
Gregory E. Elliehausen and Robert D. Kurtz. May
1985. 10 pp.
145. SERVICE CHARGES AS A SOURCE OF BANK INCOME
AND THEIR IMPACT ON CONSUMERS, by Glenn B .
Canner and Robert D. Kurtz. August 1985. 31 pp.
146. THE ROLE OF THE PRIME RATE IN THE PRICING OF
BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84,
by Thomas F. Brady. November 1985. 25 pp.
147. REVISIONS IN THE MONETARY SERVICES (DIVISIA)
INDEXES OF THE MONETARY AGGREGATES, by Helen
T. Farr and Deborah Johnson. December 1985. 42 pp.
148. THE MACROECONOMIC AND SECTORAL EFFECTS OF
THE ECONOMIC RECOVERY TAX ACT: SOME SIMULATION RESULTS, by Flint Brayton and Peter B. Clark.
December 1985. 17 pp.
REPRINTS OF BULLETIN
ARTICLES
Most of the articles reprinted do not exceed 12 pages.
The Commercial Paper Market since the Mid-Seventies. 6/82.
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.
Survey of Consumer Finances, 1983. 9/84.
Bank Lending to Developing Countries. 10/84.
Survey of Consumer Finances, 1983: A Second Report.
12/84.
Union Settlements and Aggregate Wage Behavior in the
1980s. 12/84.
The Thrift Industry in Transition. 3/85.
U.S. International Transactions in 1984. 5/85.
A Revision of the Index of Industrial Production. 7/85.
Financial Innovation and Deregulation in Foreign Industrial
Countries. 10/85.
Recent Developments in the Bankers Acceptance Market.
1/86.
A77
Index to Statistical Tables
References
are to pages
A3-A68
although
the prefix "A" is omitted
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 19, 20
Assets and liabilities (See also Foreigners)
Banks, by classes, 18-20
Domestic finance companies, 37
Federal Reserve Banks, 10
Financial institutions, 26
Foreign banks, U.S. branches and agencies, 21
Nonfinancial corporations, 36
Automobiles
Consumer installment credit, 40, 41
Production, 47, 48
BANKERS acceptances, 9, 23, 24
Bankers balances, 18-20 (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 34
Rates, 24
Branch banks, 21, 55
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 36
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 18
Federal Reserve Banks, 10
Central banks, discount rates, 67
Certificates of deposit, 24
Commercial and industrial loans
Commercial banks, 16, 19
Weekly reporting banks, 19-21
Commercial banks
Assets and liabilities, 18-20
Commercial and industrial loans, 16, 18, 19, 20, 21
Consumer loans held, by type, and terms, 40, 41
Loans sold outright, 19
Nondeposit funds, 17
Real estate mortgages held, by holder and property, 39
Time and savings deposits, 3
Commercial paper, 23, 24, 37
Condition statements (See Assets and liabilities)
Construction, 44, 49
Consumer installment credit, 40, 41
Consumer prices, 44, 50
Consumption expenditures, 51, 52
Corporations
Nonfinancial, assets and liabilities, 36
Profits and their distribution, 35
Security issues, 34, 65
Cost of living (See Consumer prices)
Credit unions, 26, 40 (See also Thrift institutions)
Currency and coin, 18
Currency in circulation, 4, 13
Customer credit, stock market, 25
DEBITS to deposit accounts, 15
Debt (See specific types of debt or securities)
Demand deposits
Banks, by classes, 18-21
in this
index
Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 22
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
Federal Reserve Banks, 4, 10
Turnover, 15
Discount rates at Reserve Banks and at foreign central
banks and foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
EMPLOYMENT, 45
Eurodollars, 24
FARM mortgage loans, 39
Federal agency obligations, 4, 9, 10, 11, 31, 32
Federal credit agencies, 33
Federal finance
Debt subject to statutory limitation, and types and
ownership of gross debt, 30
Receipts and outlays, 28, 29
Treasury financing of surplus, or deficit, 28
Treasury operating balance, 28
Federal Financing Bank, 28, 33
Federal funds, 5, 17, 19, 20, 21, 24, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 38, 39
Federal Housing Administration, 33, 38, 39
Federal Land Banks, 39
Federal National Mortgage Association, 33, 38, 39
Federal Reserve Banks
Condition statement, 10
Discount rates ( S e e Interest rates)
U.S. government securities held, 4, 10, 11, 30
Federal Reserve credit, 4, 5, 10, 11
Federal Reserve notes, 10
Federal Savings and Loan Insurance Corporation—insured
institutions, 26
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 37
Business credit, 37
Loans, 40, 41
Paper, 23, 24
Financial institutions
Loans to, 19, 20, 21
Selected assets and liabilities, 26
Float, 4
Flow of funds, 42, 43
Foreign banks, assets and liabilities of U.S. branches and
agencies, 21
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4, 10, 19, 20
Foreign exchange rates, 68
Foreign trade, 54
Foreigners
Claims on, 55, 57, 60, 61, 62, 64
Liabilities to, 20, 54, 55, 57, 58, 63, 65, 66
GOLD
Certificate account, 10
Stock, 4, 54
Government National Mortgage Association, 33, 38, 39
Gross national product, 51
HOUSING, new and existing units, 49
INCOME, personal and national, 44, 51, 52
Industrial production, 44, 47
Installment loans, 40, 41
Insurance companies, 26, 30, 39
Interest rates
Bonds, 24
Consumer installment credit, 41
Federal Reserve Banks, 6
Foreign central banks and foreign countries, 67
Money and capital markets, 24
Mortgages, 38
Prime rate, 23
Time and savings deposits, 8
International capital transactions of United States, 53-67
International organizations, 57, 58, 60, 63, 64
Inventories, 51
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 18, 19, 20, 21, 26
Commercial banks, 3, 16, 18-20, 39
Federal Reserve Banks, 10, 11
Financial institutions, 26, 39
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 18-20
Commercial banks, 3, 16, 18-20
Federal Reserve Banks, 4, 5, 6, 10, 11
Financial institutions, 26, 39
Insured or guaranteed by United States, 38, 39
REAL estate loans
Banks, by classes, 16, 19, 20, 39
Financial institutions, 26
Terms, yields, and activity, 38
Type of holder and property mortgaged, 39
Repurchase agreements, 5, 17, 19, 20, 21
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, 38
Retail credit and retail sales, 40, 41, 44
SAVING
Flow of funds, 42, 43
National income accounts, 51
Savings and loan associations, 8, 26, 39, 40, 42 (See also
Thrift institutions)
Savings banks, 26
Savings deposits (See Time and savings deposits)
Securities (See specific types)
Federal and federally sponsored credit agencies, 33
Foreign transactions, 65
New issues, 34
Prices, 25
Special drawing rights, 4, 10, 53, 54
State and local governments
Deposits, 19, 20
Holdings of U.S. government securities, 30
New security issues, 34
Ownership of securities issued by, 19, 20, 26
Rates on securities, 24
Stock market, selected statistics, 25
Stocks (See also Securities)
New issues, 34
Prices, 25
Student Loan Marketing Association, 33
MANUFACTURING
Capacity utilization, 46
Production, 46, 48
Margin requirements, 25
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 5
Reserve requirements, 7
Mining production, 48
Mobile homes shipped, 49
Monetary and credit aggregates, 3, 12
Money and capital market rates, 24
Money stock measures and components, 3, 13
Mortgages (See Real estate loans)
Mutual funds, 35
Mutual savings banks, 8, 26, 39, 40 (See also Thrift
institutions)
NATIONAL defense outlays, 29
National income, 51
OPEN market transactions, 9
PERSONAL income, 52
Prices
Consumer and producer, 44, 50
Stock market, 25
Prime rate, 23
Producer prices, 44, 50
Production, 44, 47
Profits, corporate, 35
TAX receipts, federal, 29
Thrift institutions, 3 (See also Credit unions, Mutual
savings banks, and Savings and loan associations)
Time and savings deposits, 3, 8, 13, 17, 18, 19, 20, 21
Trade, foreign, 54
Treasury cash, Treasury currency, 4
Treasury deposits, 4, 10, 28
Treasury operating balance, 28
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 18, 19, 20
Treasury deposits at Reserve Banks, 4, 10, 28
U.S. government securities
Bank holdings, 18-20, 21, 30
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 4, 10, 11, 30
Foreign and international holdings and transactions, 10,
30, 66
Open market transactions, 9
Outstanding, by type and holder, 26, 30
Rates, 24
U.S. international transactions, 53-67
Utilities, production, 48
VETERANS Administration, 38, 39
WEEKLY reporting banks, 19-21
Wholesale (producer) prices, 44, 50
YIELDS (See Interest rates)
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
George N. Hatsopoulos
Frank E. Morris
Robert W. Eisenmenger
NEW YORK*
10045
John Brademas
Clifton R. Wharton, Jr.
Mary Ann Lambertsen
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
Robert E. Boni
James E. Haas
Karen N. Horn
William H. Hendricks
Leroy T. Canoles, Jr.
Robert A. Georgine
Robert L. Tate
Wallace J. Jorgenson
Robert P. Black
Jimmie R. Monhollon
John H. Weitnauer, Jr.
Bradley Currey, Jr.
A. G. Trammell
JoAnn Smith
Sue McCourt Cobb
Patsy R. Williams
Sharon A. Perlis
Robert P. Forrestal
Jack Guynn
Robert J. Day
Marcus Alexis
Robert E. Brewer
Silas Keehn
Daniel M. Doyle
W.L. Hadley Griffin
Mary P. Holt
Sheffield Nelson
William C. Ballard, Jr.
G. Rives Neblett
Thomas C. Melzer
Joseph P. Garbarini
John B. Davis, Jr.
Michael W. Wright
t
Gary H. Stern
Thomas E. Gainor
Irvine O. Hockaday, Jr.
Robert G. Lueder
James E. Nielson
Patience S. Latting
Kenneth L. Morrison
Roger Guffey
Henry R. Czerwinski
Robert D. Rogers
Bobby R. Inman
|
|
f
Robert H. Boykin
William H. Wallace
Alan C. Furth
Fred W. Andrew
Richard C. Seaver
Paul E. Bragdon
Don M. Wheeler
John W. Ellis
Robert T. Parry
Richard T. Griffith
Cincinnati
Pittsburgh
45201
15230
RICHMOND*
23219
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30301
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75222
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Vice President
in charge of branch
Charles A. Cerino
Harold J. Swart
Robert D. McTeer, Jr.
Albert D. Tinkelenberg
John G. Stoides
Fred R. HenJames 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 RL.o wKoonce,
Jr.
e
Thomas H. Robertson
J Z
Robert M. McGill
Angelo S. Carella
E. Ronald Liggett
Gerald R. Kelly
""Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 060%; 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.
t Several 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
LEGEND
— B o u n d a r i e s of Federal Reserve Districts
Boundaries of Federal Reserve Branch
Territories
®
Federal Reserve Bank Cities
•
Federal Reserve Branch Cities
Federal Reserve Bank Facility
Q
Board of Governors of the Federal Reserve
System
@FedFRASER